N-Q 1 c18218nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-01136 SECURITY EQUITY FUND (Exact name of registrant as specified in charter) ONE SECURITY BENEFIT PLACE, TOPEKA, KANSAS 66636-0001 (Address of principal executive offices) (Zip code) THOMAS A. SWANK, PRESIDENT SECURITY EQUITY FUND ONE SECURITY BENEFIT PLACE TOPEKA, KANSAS 66636-0001 (Name and address of agent for service) Registrant's telephone number, including area code: (785) 438-3000 Date of fiscal year end: September 30 Date of reporting period: June 30, 2007 Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (Sections 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. SCHEDULE OF INVESTMENTS. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES June 30, 2007 (Unaudited)
SHARES VALUE ---------- ----------- COMMON STOCK-55.7% AGRICULTURAL PRODUCTS - 2.0% Alico, Inc. 5,309 $ 323,796 Bunge, Ltd. 478 40,391 Cresud S.A. ADR 11,314 242,006 ----------- 606,193 ----------- Aluminum -0.8% Century Aluminum Company* 4,554 248,785 ----------- COAL & CONSUMABLE FUELS - 0.9% International Coal Group, Inc. * 28,718 171,734 Uranium Resources, Inc. * 8,107 89,420 ----------- 261,154 ----------- COMMODITY CHEMICALS - 0.7% Pioneer Companies, Inc. * 3,900 134,043 Sinopec Shanghai Petrochemical Company, Ltd. ADR 1,373 91,167 ----------- 225,210 ----------- CONSTRUCTION & ENGINEERING - 5.4% Chicago Bridge & Iron Company N.V. 10,409 392,836 Fluor Corporation 2,455 273,413 Granite Construction, Inc. 478 30,678 KBR, Inc. * 955 25,050 Quanta Services, Inc. * (1) 25,742 789,507 URS Corporation * 2,387 115,889 ----------- 1,627,373 ----------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS - 2.3% AGCO Corporation * 9,432 409,443 Bucyrus International, Inc. 2,602 184,169 Terex Corporation * 1,432 116,422 ----------- 710,034 ----------- DIVERSIFIED CHEMICALS - 2.1% E.I. Du Pont de Nemours & Company 6,506 330,765 FMC Corporation 3,253 290,786 ----------- 621,551 ----------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES - 0.6% Pike Electric Corporation * 1,432 32,048 Ritchie Bros Auctioneers, Inc. 2,574 161,184 ----------- 193,232 ----------- DIVERSIFIED METALS & MINING -1.1% Anglo American plc ADR 1,917 56,245 Cia Vale do Rio Doce ADR 4,270 190,228 Idaho General Mines, Inc. * 9,852 62,462 US Energy Corporation Wyoming * 2,730 14,687 ----------- 323,622 ----------- ELECTRONIC EQUIPMENT MANUFACTURERS - 2.3% Amphenol Corporation 9,573 341,278
SHARES VALUE ---------- ----------- COMMON STOCK (CONTINUED) ELECTRONIC EQUIPMENT MANUFACTURERS (CONTINUED) 0Y0 Geospace Corporation * 4,833 $ 358,560 ----------- 699,838 ----------- ENVIRONMENTAL & FACILITIES SERVICES - 2.2% Allied Waste Industries, Inc. * 13,752 185,102 Waste Management, Inc. 12,369 483,009 ----------- 668,111 ----------- EXCHANGE TRADED FUNDS - 0.6% PowerShares DB Agriculture Fund* 3,342 88,429 PowerShares DB Energy Fund * 1,432 41,285 United States Natural Gas Fund, LP* 1,413 62,073 ----------- 191,787 ----------- FERTILIZERS & AGRICULTURAL CHEMICALS -1.8% Sociedad Quimica y Minera de Chile S.A. ADR (1) 3,197 550,012 ----------- INDUSTRIAL MACHINERY - 2.4% Altra Holdings, Inc. * 3,801 65,681 Harsco Corporation 7,156 372,112 Hurco Companies, Inc. * 955 47,731 Nordson Corporation 1,952 97,912 Timken Company 3,903 140,938 ----------- 724,374 ----------- INTEGRATED OIL & GAS -1.9% Sasol, Ltd. ADR 6,319 237,215 Suncor Energy, Inc. 3,900 350,688 ----------- 587,903 ----------- MARINE -1.2% Kirby Corporation * 9,758 374,610 ----------- OIL & GAS DRILLING -1.3% Atwood Oceanics, Inc. * 5,641 387,085 ----------- OIL & GAS EQUIPMENT & SERVICES - 5.2% FMC Technologies, Inc. * (1) 9,758 773,029 Halliburton Company 1,299 44,815 Superior Energy Services, Inc. * 3,904 155,848 Superior Offshore International, Inc.* 8,550 155,610 Tenaris S.A. ADR 5,205 254,837 Willbros Group, Inc. * 6,062 179,920 ----------- 1,564,059 ----------- OIL & GAS EXPLORATION & PRODUCTION -3.7% Denbury Resources, Inc. * 6,178 231,675 EOG Resources, Inc. 6,539 477,739 Gulfport Energy Corporation * 478 9,551
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES June 30, 2007 (Unaudited) - continued
SHARES VALUE ---------- ----------- COMMON STOCK (continued) OIL & GAS EXPLORATION & PRODUCTION (CONTINUED) Helix Energy Solutions Group, Inc.* 5,855 $ 233,673 Parallel Petroleum Corporation * 4,927 107,901 Venoco, Inc. * 2,602 48,579 ----------- 1,109,118 ----------- OIL & GAS REFINING & MARKETING - 0.4% Valero Energy Corporation 1,424 105,177 ----------- PACKAGED FOODS & MEATS - 0.8% Maui Land & Pineapple Company, Inc.* 3,736 137,223 Tyson Foods, Inc. 4,670 107,597 ----------- 244,820 ----------- PAPER PACKAGING - 0.8% Smurfit-Stone Container Corporation * 18,939 252,078 ----------- PAPER PRODUCTS -1.0% Abitibi-Consolidated, Inc. 6,686 19,657 Domtar Corporation * 5,730 63,947 MeadWestvaco Corporation 6,180 218,277 ----------- 301,881 ----------- PRECIOUS METALS & MINERALS - 0.8% North American Palladium, Ltd. * 13,662 129,789 Silver Standard Resources, Inc. * 1,995 68,568 Silver Wheaton Corporation* 4,063 47,497 ----------- 245,854 ----------- RAILROADS -0.3% Guangshen Railway Company, Ltd. ADR 1,951 78,918 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT -0.8% Brookfield Asset Management, Inc. 1 20 Consolidated-Tomoka Land Company 1,800 124,722 Tejon Ranch Company * 2,514 111,119 ----------- 235,861 ----------- SEMICONDUCTOR EQUIPMENT -0.3% MEMC Electronic Materials, Inc. * 1,634 99,870 ----------- SEMICONDUCTORS -0.9% ON Semiconductor Corporation * 25,791 276,479 ----------- SPECIALIZED REIT'S - 2.3% Plum Creek Timber Company, Inc. 10,581 440,804 Potlatch Corporation 1,432 61,648 Rayonier, Inc. 4,375 197,488 ----------- 699,940 ----------- STEEL -6.6% Cleveland-Cliffs, Inc. 5,855 454,758
SHARES VALUE ---------- ----------- COMMON STOCK (continued) STEEL (CONTINUED) METAL MANAGEMENT, INC. 5,855 $ 258,030 Olympic Steel, Inc. (1) 19,497 558,784 Quanex Corporation 4,089 199,134 Reliance Steel & Aluminum Company 1,952 109,820 Worthington Industries, Inc. 19,860 429,969 ----------- 2,010,495 ----------- TRADING COMPANIES & DISTRIBUTORS - 0.6% Houston Wire & Cable Company * 1,301 36,961 UAP Holding Corporation 5,139 154,890 ----------- 191,851 ----------- TRUCKING -1.5% J.B. Hunt Transport Services, Inc. 15,468 453,522 ----------- WIRELESS TELECOMMUNICATION SERVICES - 0.1% Mobile Telesystems OJSC ADR * 651 39,431 ----------- TOTAL COMMON STOCK (Cost $16,896,231) $16,910,228 -----------
PRINCIPAL AMOUNT VALUE ---------- ----------- U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES - 40.5% Federal Farm Credit Discount Note 5.03% - 2007 (1) $ 600,000 599,915 5.04% - 2007 (1) 525,000 521,728 5.12% - 2007(1) 350,000 349,950 5.15% - 2007(1) 300,000 299,533 Federal Home Loan Mortgage Corporation 5.07% - 2007 (1) 500,000 493,567 5.08% - 2007 (1) 300,000 299,235 5.08% - 2007 (1) 500,000 495,466 5.115% - 2007(1) 1,225,000 1,220,140 5.125% - 2007(1) 725,000 724,281 Federal National Mortgage Association 5.07% - 2007 (1) 950,000 942,194 5.08% - 2007 (1) 583,000 577,053 5.09% - 2007 (1) 500,000 498,371 5.09% - 2007 (1) 700,000 696,331 5.09% - 2007 (1) 200,000 198,753 5.09% - 2007 (1) 250,000 246,713 5.109% - 2007 (2) 1,425,000 1,418,944 5.105% - 2007 (2) 1,075,000 1,067,233 5.115% - 2007(1) 950,000 947,846
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES June 30, 2007 (Unaudited) - continued
PRINCIPAL AMOUNT VALUE ---------- ----------- U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES (CONTINUED) Federal National Mortgage Association (continued) 5.125%-2007(1) $ 725,000 $ 724,076 ---------- ----------- TOTAL U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES (Cost $12,319,744) $12,321,329 ----------- Total Investments (Security Equity Fund -Alpha Opportunity Series) (Cost $29,215,975) - 96.2% $29,231,557 Other Assets in Excess of Liabilities - 3.8% 1,147,660 ----------- TOTAL NET ASSETS -100.0% $30,379,217 ===========
Schedule of Securities Sold Short June 30, 2007 Security Equity Fund-Alpha Opportunity Series
SHARES VALUE ---------- ----------- COMMON STOCK - (1.3)% DIVERSIFIED BANKS - (0.2)% Banco Bilbao Vizcaya Argentaria (2,005) $ (48,882) ----------- MULTI-LINE INSURANCE-(0.1)% AXA S.A. ADR (893) (38,435) ----------- OFFICE REIT'S - (0.5)% Kilroy Realty Corporation (1,965) (139,201) ----------- OTHER DIVERSIFIED FINANCIAL SERVICES - (0.2)% JPMorgan Chase & Company (1,176) (56,977) ----------- REGIONAL BANKS - (0.1)% BB&T Corporation (1,042) (42,388) ----------- RESTAURANTS - 0.0% Steak N Shake Company * (873) (14,570) ----------- SEMICONDUCTORS - (0.2)% Broadcom Corporation * (2,084) (60,957) ----------- TOTAL COMMON STOCK (Proceeds $407,514) $ (401,410) ----------- TOTAL SECURITIES SOLD SHORT (SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES) (PROCEEDS $407,514) $ (401,410) ===========
FOOTNOTES Percentages are stated as a percent of net assets. For federal income tax purposes the identified cost of investments owned at 6/30/2007 was $29,381,377. * - Non-income producing security 1 - Security is segregated as collateral for open futures contracts. 2 - Security is segregated as collateral for short positions. Glossary: ADR - American Depositary Receipt plc - Public Limited Company See notes to financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - EQUITY SERIES June 30, 2007 (Unaudited)
SHARES VALUE ------- ----------- COMMON STOCK-94.5% AEROSPACE & DEFENSE - 4.4% General Dynamics Corporation 173,800 $13,594,636 L-3 Communications Holdings, Inc. 42,000 4,090,380 ------------ 17,685,016 ------------ AIR FREIGHT & LOGISTICS - 3.0% FedEx Corporation 107,700 11,951,469 ------------ BROADCASTING & CABLE TV - 1.3% CBS Corporation (CI.B) 158,100 5,267,892 ------------ BUILDING PRODUCTS - 0.3% USG Corporation * 27,500 1,348,600 ------------ COAL & CONSUMABLE FUELS - 1.5% Evergreen Energy, Inc. * 979,800 5,908,194 ------------ COMMUNICATIONS EQUIPMENT - 2.1% ADC Telecommunications, Inc. * 447,757 8,207,386 ------------ CONSTRUCTION & ENGINEERING - 0.4% Shaw Group, Inc. * 35,300 1,634,037 ------------ CONSUMER FINANCE - 9.6% American Express Company 193,850 11,859,743 Capital One Financial Corporation 143,500 11,256,140 First Marblehead Corporation 390,750 15,098,580 ------------ 38,214,463 ------------ DATA PROCESSING & OUTSOURCED Services - 4.1% First Data Corporation 208,100 6,798,627 Western Union Company 456,400 9,506,812 ------------ 16,305,439 ------------ DRUG RETAIL - 2.4% CVS Caremark Corporation 264,200 9,630,090 ------------ HEALTH CARE EQUIPMENT - 1.7% Hospira, Inc. * 175,700 6,859,328 ------------ HEALTH CARE SERVICES - 1.9% Medco Health Solutions, Inc. * 97,250 7,584,528 ------------ HOME IMPROVEMENT RETAIL - 4.2% Home Depot, Inc. 421,700 16,593,895 ------------ HOTELS, RESORTS & CRUISE LINES - 1.9% Carnival Corporation 158,800 7,744,676 ------------ HYPERMARKETS & SUPER CENTERS - 6.5% Costco Wholesale Corporation 226,300 13,243,076 Wal-Mart Stores, Inc. 267,000 12,845,370 ------------ 26,088,446 ------------ INDUSTRIAL CONGLOMERATES - 8.1% General Electric Company 491,400 18,810,792 Tyco International, Ltd. 394,300 13,323,397 ------------ 32,134,189 ------------
SHARES VALUE ------- ----------- COMMON STOCK (CONTINUED) INDUSTRIAL GASES - 1.4% Praxair, Inc. 79,500 $ 5,723,205 ------------ INTEGRATED OIL & GAS - 7.0% Chevron Corporation 128,500 10,824,840 ConocoPhillips 8,500 667,250 Exxon Mobil Corporation 194,700 16,331,436 ------------ 27,823,526 ------------ IT CONSULTING & OTHER SERVICES - 0.6% Unisys Corporation * 277,000 2,531,780 ------------ MANAGED HEALTH CARE - 3.0% UnitedHealth Group, Inc. 78,500 4,014,490 WellPoint, Inc. * 100,700 8,038,881 ------------ 12,053,371 ------------ MOVIES & ENTERTAINMENT - 2.8% Time Warner, Inc. 528,000 11,109,120 ------------ MULTI-LINE INSURANCE - 5.0% American International Group, Inc. 282,500 19,783,475 ------------ OIL & GAS DRILLING -1.0% Transocean, Inc. * 36,200 3,836,476 ------------ OIL & GAS EQUIPMENT & SERVICES - 2.5% Baker Hughes, Inc. 61,000 5,131,930 BJ Services Company 53,900 1,532,916 Halliburton Company 95,600 3,298,200 ------------ 9,963,046 ------------ OTHER DIVERSIFIED FINANCIAL Services - 5.0% Citigroup, Inc. 244,600 12,545,534 JPMorgan Chase & Company 150,600 7,296,570 ------------ 19,842,104 ------------ PHARMACEUTICALS - 2.9% Johnson & Johnson 189,000 11,646,180 ------------ PROPERTY & CASUALTY INSURANCE - 3.7% Berkshire Hathaway, Inc. * 136 14,888,600 ------------ SYSTEMS SOFTWARE - 3.7% Microsoft Corporation 505,300 14,891,191 ------------ WIRELESS TELECOMMUNICATION SERVICES - 2.5% Sprint Nextel Corporation 480,600 9,953,226 ------------ TOTAL COMMON STOCK (Cost $291,464,848) $377,202,948 ------------
PRINCIPAL AMOUNT VALUE ---------- ------------ ASSET BACKED COMMERCIAL PAPER - 0.6% FINANCIAL COMPANIES - CAPTIVE - 0.4% Edison Asset Securitization LLC 5.24%, 7/12/2007 1,587,000 1,584,459 ------------
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - EQUITY SERIES June 30, 2007 (Unaudited) - continued
PRINCIPAL AMOUNT VALUE ---------- ------------ ASSET BACKED COMMERCIAL PAPER (CONTINUED) FINANCIAL COMPANIES - MISCELLANEOUS RECEIVABLES - 0.2% Fairway Finance Corporation 5.29%, 7/5/2007 1,000,000 $ 999,412 ------------ TOTAL ASSET BACKED COMMERCIAL PAPER (Cost $2,583,871) $ 2,583,871 ------------ COMMERCIAL PAPER - 5.3% BANKING - 1.8% Credit Suisse First Boston USA 5.27%, 7/9/2007 3,700,000 3,695,667 UBS Finance (Deleware) LLC 5.24%, 7/11/2007 1,600,000 1,597,671 5.28%, 7/17/2007 1,800,000 1,795,776 ------------ 7,089,114 ------------ BROKERAGE - 0.4% ING (US) Funding LLC 5.28%, 7/3/2007 1,500,000 1,499,560 ------------ ELECTRIC - 1.1% Florida Power & Light Company 5.30%, 7/13/2007 1,000,000 998,233 5.30%, 7/23/2007 1,500,000 1,495,142 Southern Company 5.29%, 7/25/2007 2,000,000 1,992,947 ------------ 4,486,322 ------------ FINANCIAL COMPANIES - CAPTIVE - 1.0% International Lease Finance Company 5.28%, 7/5/2007 2,000,000 1,998,818 5.32%, 7/6/2007 2,000,000 1,998,522 ------------ 3,997,340 ------------ NON U.S. BANKING - 0.3% Danske Corporation 5.25%, 7/10/2007 1,200,000 1,198,425 ------------ PHARMACEUTICALS - 0.7% Abbott Laboratories 5.25%, 7/2/2007 1,700,000 1,699,752 5.24%, 7/16/2007 1,000,000 997,812 ------------ 2,697,564 ------------ TOTAL COMMERCIAL PAPER (Cost $20,968,325) $ 20,968,325 ------------
PRINCIPAL AMOUNT VALUE ---------- ------------ REPURCHASE AGREEMENT - 0.1% United Missouri Bank, 4.86%, dated 6/29/07, matures 7/02/07; repurchase amount $439,178 (Collateralized by FHLB, 5.10%, 9/19/08 with a value of $450,210) $ 439,000 $ 439,000 ------------ TOTAL REPURCHASE AGREEMENT (Cost $439,000) $ 439,000 ------------ TOTAL INVESTMENTS (SECURITY EQUITY FUND - EQUITY SERIES) $401,194,144 (COST $315,456,044) - 100.5% LIABILITIES IN EXCESS OF OTHER ASSETS - (0.5)% (1,898,992) ------------ TOTAL NET ASSETS - 100.0% $399,295,152 ============
FOOTNOTES Percentages are stated as a percent of net assets. For federal income tax purposes the identified cost of investments owned at 6/30/2007 was $315,456,044. * - Non-income producing security See notes to financial statements. The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - GLOBAL SERIES June 30, 2007 (Unaudited)
SHARES VALUE ---------- ------------- COMMON STOCK -98.4% BRAZIL -1.8% Companhia de Bebidas das Americas ADR 21,957 $ 1,536,990 Empresa Brasileira de Aeronautica S.A. ADR 39,768 1,917,215 ------------- 3,454,205 ------------- CANADA -1.8% Husky Energy, Inc. 29,280 2,410,680 Manulife Financial Corporation 27,146 1,015,299 ------------- 3,425,979 ------------- CAYMAN ISLANDS - 2.5% 3SBio, Inc. ADR* 8,100 78,084 ACE, Ltd. 18,740 1,171,625 Transocean, Inc. * 24,500 2,596,510 XL Capital, Ltd. 12,400 1,045,196 ------------- 4,891,415 ------------- DENMARK - 0.4% Novo-Nordisk A/S(CI.B) 6,900 750,549 ------------- FINLAND -0.6% Fortum Oyj 39,100 1,221,942 ------------- FRANCE - 5.4% BNP Paribas 4,420 525,095 LVMH Moet Hennessy Louis Vuitton S.A. 22,789 2,622,566 NicOx S.A. * 10,244 249,280 Sanofi-Aventis 22,355 1,806,245 Societe Generale 9,674 1,792,626 Technip S.A. 28,860 2,385,675 Total S.A. 13,800 1,119,031 ------------- 10,500,518 ------------- GERMANY - 5.8% Allianz AG 11,298 2,650,135 Bayerische Motoren Werke (BMW) AG* 30,297 1,964,438 SAP AG 43,596 2,241,604 Siemens AG 29,716 4,276,826 ------------- 11,133,003 ------------- HONG KONG - 0.4% Hutchison Whampoa, Ltd. 70,082 695,690 ------------- INDIA - 2.9% Dish TV India, Ltd. * 116,610 307,024 Hindustan Unilever, Ltd. 194,400 906,249 ICICI Bank, Ltd. ADR 11,250 552,937 Infosys Technologies, Ltd. 43,247 2,055,796 Wire and Wireless India, Ltd. * 93,600 146,742 Zee Entertainment Enterprises, Ltd 202,800 1,488,072 Zee News, Ltd. * 84,633 95,910 ------------- 5,552,730 -------------
SHARES VALUE ---------- ------------- COMMON STOCK (CONTINUED) ITALY - 0.8% Bulgari SpA 62,400 $ 1,000,934 Tod's SpA 5,600 499,793 ------------- 1,500,727 ------------- JAPAN -10.8% Canon, Inc. 12,800 750,509 Chugai Pharmaceutical Company, Ltd 31,600 567,719 Credit Saison Company, Ltd. 32,700 850,962 Fanuc, Ltd. 5,200 536,622 Hoya Corporation 40,900 1,356,560 KDDI Corporation 261 1,933,184 Keyence Corporation 4,000 873,704 Kyocera Corporation 9,700 1,030,330 Murata Manufacturing Company, Ltd. 24,700 1,858,138 Nidec Corporation 6,900 404,750 Nintendo Company, Ltd. 3,400 1,240,266 Resona Holdings, Inc. 254 606,661 Secom Company, Ltd. 20,000 943,384 Sega Sammy Holdings, Inc. 24,800 401,243 Seven & I Holdings Company, Ltd. 20,778 593,851 Shionogi & Company, Ltd. 59,000 961,553 Sony Corporation 49,300 2,530,246 Square Enix Company, Ltd. 26,700 674,270 Sumitomo Mitsui Financial Group, Inc. 145 1,351,529 Toyota Motor Corporation 22,100 1,393,541 ------------- 20,859,022 ------------- JERSEY -0.2% Experian Group, Ltd. 29,675 373,099 ------------- MEXICO - 2.2% Fomento Economico Mexicano, SAB. de C.V. * 357,000 1,399,411 Grupo Modelo, S.A. de C.V. (CI.C) 160,700 875,358 Grupo Televisa S.A. ADR 74,456 2,055,730 ------------- 4,330,499 ------------- NETHERLANDS - 2.2% European Aeronautic Defence and Space Company N.V. 59,490 1,930,934 Koninklijke (Royal) Philips Electronics N.V. 54,500 2,309,857 ------------- 4,240,791 ------------- NORWAY - 0.5% Tandberg ASA 47,400 1,057,487 ------------- PANAMA -1.2% Carnival Corporation 47,600 2,321,452 ------------- REPUBLIC OF KOREA - 2.3% Hyundai Heavy Industries Company, Ltd. 4,413 1,645,296
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - GLOBAL SERIES June 30, 2007 (Unaudited) - continued
SHARES VALUE ---------- ------------- COMMON STOCK (CONTINUED) REPUBLIC OF KOREA (CONTINUED) Samsung Electronics Company, Ltd.* 1,819 $ 1,112,773 SK Telecom Company, Ltd. ADR 65,160 1,782,126 ------------- 4,540,195 ------------- SINGAPORE - 0.2% Singapore Press Holdings, Ltd. 148,848 451,306 ------------- SPAIN -1.0% Industria de Diseno Textil S.A. 31,779 1,870,737 ------------- SWEDEN -6.9% Assa Abloy AB 45,300 996,832 Hennes & Mauritz AB (CI.B) 63,400 3,748,591 Investor AB (CI.B) (1) 45,155 1,165,594 Telefonaktiebolaget LM Ericsson (CI.B) 1,859,400 7,416,948 ------------- 13,327,965 ------------- SWITZERLAND -3.3% Credit Suisse Group 37,330 2,650,097 Novartis AG 16,284 914,193 Roche Holding AG 12,858 2,278,265 Syngenta AG 2,327 453,650 ------------- 6,296,205 ------------- TAIWAN -2.0% Benq Corporation * 528,000 200,072 MediaTek, Inc. 123,700 1,926,114 Taiwan Semiconductor Manufacturing Company, Ltd. ADR 152,796 1,700,620 ------------- 3,826,806 ------------- UNITED KINGDOM -12.0% BP plc ADR 21,167 1,526,987 Burberry Group plc 62,891 860,720 Cadbury Schweppes plc 144,724 1,963,979 Diageo plc 51,976 1,080,165 HSBC Holdings plc 100,778 1,842,818 Pearson plc 53,050 893,515 Prudential plc 118,809 1,690,925 Reckitt Benckiser plc 46,054 2,519,976 Royal Bank of Scotland Group plc 230,472 2,918,168 Smith & Nephew plc 81,732 1,012,517 Tesco plc 189,179 1,582,581 Vodafone Group plc 1,262,983 4,228,902 WPP Group plc 66,130 988,272 ------------- 23,109,525 ------------- UNITED STATES -31.2% 3M Company 22,300 1,935,417 Acadia Pharmaceuticals, Inc. * 14,600 199,582 Adobe Systems, Inc. * 48,600 1,951,290 Advanced Micro Devices, Inc. * 114,600 1,638,780 Affymetrix, Inc. * 16,000 398,240
SHARES VALUE ---------- ------------- COMMON STOCK (CONTINUED) UNITED STATES (CONTINUED) Aflac, Inc. 9,500 $ 488,300 Altera Corporation 56,100 1,241,493 American International Group, Inc. 14,000 980,420 Automatic Data Processing, Inc. 43,000 2,084,210 Berkshire Hathaway, Inc. (CI.B) * 300 1,081,500 Boeing Company 13,800 1,327,008 Boston Scientific Corporation * 83,479 1,280,568 Chevron Corporation 16,766 1,412,368 Cisco Systems, Inc. * 29,800 829,930 Citadel Broadcasting Corporation 3,978 25,659 Coach, Inc. * 14,300 677,677 Colgate-Palmolive Company 21,800 1,413,730 Corning, Inc. * 84,100 2,148,755 Cree, Inc. * 39,500 1,021,075 eBay, Inc. * 88,100 2,835,058 Emerson Electric Company 41,300 1,932,840 Genentech, Inc. * 9,000 680,940 Getty Images, Inc. * 11,600 554,596 Gilead Sciences, Inc. * 39,600 1,535,292 InterMune, Inc. * 13,100 339,814 International Game Technology 27,800 1,103,660 Intuit, Inc. * 59,400 1,786,752 Johnson & Johnson 7,100 437,502 Juniper Networks, Inc. * 104,400 2,627,748 Linear Technology Corporation 23,700 857,466 Lockheed Martin Corporation 11,400 1,073,082 Maxim Integrated Products, Inc. 46,300 1,546,883 McDonald's Corporation 26,100 1,324,836 Medtronic, Inc. 13,000 674,180 Microsoft Corporation 102,200 3,011,834 Morgan Stanley 24,600 2,063,448 Nektar Therapeutics * 13,108 124,395 Northern Trust Corporation 28,800 1,850,112 Northrop Grumman Corporation 12,600 981,162 Praxair, Inc. 7,300 525,527 Raytheon Company 20,800 1,120,912 Regeneron Pharmaceuticals, Inc.* 7,900 141,568 Scientific Games Corporation * 5,900 206,205 Seattle Genetics, Inc. * 8,200 80,442 Shuffle Master, Inc. * 12,000 199,200 Sirius Satellite Radio, Inc. * 452,900 1,367,758 Theravance, Inc. * 13,400 428,800 Tiffany & Company 37,300 1,979,138 Wal-Mart Stores, Inc. 35,900 1,727,149 Walt Disney Company 51,800 1,768,452 Xilinx, Inc. 37,500 1,003,875 Yahoo!, Inc. * 12,600 341,838 ------------- 60,368,466 ------------- TOTAL COMMON STOCK (Cost $133,758,137) $ 190,100,313 -------------
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - GLOBAL SERIES June 30, 2007 (Unaudited) - continued
SHARES VALUE ---------- ------------- PREFERRED STOCK - 0.8% GERMANY - 0.8% Porsche AG 874 $ 1,558,993 ------------- TOTAL PREFERRED STOCK (Cost $441,521) $ 1,558,993 -------------
PRINCIPAL AMOUNT VALUE ---------- ------------- REPURCHASE AGREEMENT - 0.7% State Street, 2.75%, dated 6/29/07, matures 7/02/07; repurchase amount $1,343,945 (Collateralized by FHLB, 10/19/07 with a value of $1,370,830) $1,343,637 $ 1,343,637 ------------- TOTAL REPURCHASE AGREEMENT (Cost $1343,637) $ 1,343,637 ------------- Total Investments (Security Equity Fund - Global Series) $ 193,002,943 (Cost $135,543,295) - 99.9% Other Assets in Excess of Liabilities - 0.1% 244,021 ------------- TOTAL NET ASSETS -100.0% $ 193,246,964 =============
INVESTMENT CONCENTRATION At June 30, 2007, the investment diversification of the fund was as follows:
% OF INDUSTRY NET ASSETS VALUE -------- ---------- ------------- Communications Equipment 7.2% $ 14,080,868 Semiconductors 6.2 12,049,079 Diversified Banks 4.7 8,983,175 Aerospace & Defense 4.3 8,350,313 Wireless Telecommunication Services 4.1 7,944,212 Pharmaceuticals 4.0 7,716,026 Industrial Conglomerates 3.6 6,907,933 Integrated Oil & Gas 3.4 6,469,066 Application Software 3.1 5,979,646 Apparel Retail 3.0 5,619,328 Electronic Equipment Manufacturers 2.9 5,523,482 Broadcasting & Cable TV 2.8 5,486,894 Apparel, Accessories & Luxury Goods 2.6 5,161,897 Automobile Manufacturers 2.5 4,916,972 Consumer Electronics 2.5 4,840,103 Household Products 2.5 4,839,956 Biotechnology 1.9 3,733,802 Multi-Line Insurance 1.9 3,630,555 Property & Casualty Insurance 1.8 3,298,321 Life & Health Insurance 1.6 3,194,524 Internet Softwares Services 1.7 3,176,896 Systems Software 1.6 3,011,834 Health Care Equipment 1.5 2,967,265 Diversified Capital Markets 1.4 2,650,097 Oil & Gas Drilling 1.3 2,596,510 Brewers 1.3 2,412,348 Oil & Gas Equipment & Services 1.2 2,385,675 Hotels, Resorts & Cruise Lines 1.2 2,321,452 Food Retail 1.1 2,176,432 Data Processing & Outsourced Services 1.1 2,084,210 Other Diversified Financial Services 1.1 2,063,448 IT Consulting & Other Services 1.1 2,055,796 Specialty Stores 1.0 1,979,138 Packaged Foods & Meats 1.0 1,963,979 Electrical Components & Equipment 1.0 1,932,840 Home Entertainment Software 0.9 1,914,536 Publishing 1.0 1,899,416 Asset Management & Custody Banks 0.9 1,850,112 Movies & Entertainment 0.9 1,768,452 Hypermarkets & Super Centers 0.9 1,727,149 Construction & Farm Machinery & Heavy Trucks 0.8 1,645,296 Casinos & Gaming 0.8 1,509,065 Soft Drinks 0.7 1,399,411 Repurchase Agreements 0.7 1,343,637 Restaurants 0.7 1,324,836 Diversified Commercial & Professional Services 0.7 1,316,483 Electric Utilities 0.6 1,221,942 Multi-Sector Holdings 0.6 1,165,594 Distillers & Vintners 0.6 1,080,165 Building Products 0.5 996,832 Advertising 0.5 988,272 Consumer Finance 0.5 850,962 Office Electronics 0.4 750,509 Regional Banks 0.3 606,661 Industrial Machinery 0.3 536,622 Industrial Gases 0.3 525,527 Life Sciences Tools & Services 0.3 522,635 Footwear 0.3 499,793 Fertilizers & Agricultural Chemicals 0.2 453,650 Leisure Products 0.2 401,242 Computer Storage & Peripherals 0.1 200,072 ---- ------------- TOTAL INVESTMENTS 99.9 193,002,943 OTHER ASSETS AND LIABILITIES, NET 0.1 244,021 ---- ------------- NET ASSETS 100% $ 193,246,964 ---- -------------
FOOTNOTES Percentages are stated as a percent of net assets. For federal income tax purposes the identified cost of investments owned at 6/30/2007 was $136,976,816. * - Non-income producing security 1 - Security is a PFIC (Passive Foreign Investment Company) The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - GLOBAL SERIES June 30, 2007 (Unaudited) - continued Glossary: ADR - American Depositary Receipt plc - Public Limited Company See notes to financial statements. The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - MID CAP VALUE SERIES June 30, 2007 (Unaudited)
SHARES VALUE ---------- -------------- COMMON STOCK-93.1% AEROSPACE & DEFENSE -1.6% Orbital Sciences Corporation * 762,000 $ 16,009,620 -------------- AGRICULTURAL PRODUCTS - 0.5% Corn Products International, Inc. 124,000 5,635,800 -------------- APPAREL RETAIL -1.4% Stein Mart, Inc. 400,000 4,904,000 Talbots, Inc. 359,300 8,993,279 -------------- 13,897,279 -------------- APPAREL, ACCESSORIES & LUXURY GOODS - 0.9% Oxford Industries, Inc. 215,000 9,533,100 -------------- APPLICATION SOFTWARE - 2.0% EPIQ Systems, Inc. * 1,020,950 16,498,552 PLATO Learning, Inc. * (1) 895,000 4,117,000 -------------- 20,615,552 -------------- AUTO PARTS & EQUIPMENT - 0.4% HydroGen Corporation * (1)(2) 840,300 3,781,350 -------------- BUILDING PRODUCTS -0.5% Trex Company, Inc. * 250,000 4,907,500 -------------- COAL & CONSUMABLE FUELS - 7.5% Arch Coal, Inc. 620,000 21,576,000 Consol Energy, Inc. 298,700 13,773,057 Evergreen Energy, Inc. * 3,106,000 18,729,180 USEC, Inc. * (3) 1,039,500 22,848,210 -------------- 76,926,447 -------------- COMMUNICATIONS EQUIPMENT - 2.6% EFJ, Inc. * 856,500 4,616,535 MasTec, Inc. * 1,100,000 17,402,000 MRV Communications, Inc. * 1,500,000 4,875,000 -------------- 26,893,535 -------------- COMPUTER STORAGE & PERIPHERALS - 0.2% STEC, Inc. * 305,300 1,963,079 -------------- CONSTRUCTION & ENGINEERING - 8.5% Insituform Technologies, Inc. * 423,600 9,238,716 Quanta Services, Inc. * (3) 1,225,000 37,570,750 Shaw Group, Inc. * (3) 867,600 40,161,204 -------------- 86,970,670 -------------- CONSUMER FINANCE - 0.8% First Marblehead Corporation 213,150 8,236,116 -------------- DATA PROCESSING & OUTSOURCED SERVICES - 5.5% Affiliated Computer Services, Inc.* 465,300 26,391,816 Computer Sciences Corporation * 516,300 30,539,145 -------------- 56,930,961 -------------- DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES - 3.8% FTI Consulting, Inc. * 466,000 17,721,980
SHARES VALUE ---------- -------------- COMMON STOCK (continued) DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES (CONTINUED) Navigant Consulting, Inc. * 500,000 $ 9,280,000 PHH Corporation * 380,000 11,859,800 -------------- 38,861,780 -------------- DRUG RETAIL -1.3% Longs Drugstores Corporation 255,000 13,392,600 -------------- ELECTRIC UTILITIES - 5.7% Allete, Inc. (3) 70,500 3,317,025 Empire District Electric Company 96,600 2,160,942 Great Plains Energy, Inc. 1,415,650 41,223,728 Northeast Utilities 250,500 7,104,180 Westar Energy, Inc. 200,000 4,856,000 -------------- 58,661,875 -------------- ELECTRICAL COMPONENTS & EQUIPMENT -1.0% Lime Energy Company* 94,600 179,740 Power-One, Inc. * 2,648,800 10,542,224 -------------- 10,721,964 -------------- ELECTRONIC MANUFACTURING SERVICES -1.8% Maxwell Technologies, Inc. * 739,400 10,514,268 Merix Corporation * (2) 1,065,900 8,409,951 -------------- 18,924,219 -------------- EXCHANGE TRADED FUNDS - 3.2% iShares Russell 2000 Value Index Fund 202,000 16,636,720 iShares S&P MidCap 400 185,000 16,022,850 -------------- 32,659,570 -------------- HEALTH CARE EQUIPMENT - 0.2% HealthTronics, Inc. * 510,000 2,218,500 -------------- HEALTH CARE FACILITIES - 2.3% Community Health Systems, Inc. * 185,000 7,483,250 Triad Hospitals, Inc. * 310,000 16,665,600 -------------- 24,148,850 -------------- HIGHWAYS & RAILTRACKS - 0.9% Quixote Corporation (1)(2) 479,100 8,959,170 -------------- HOME FURNISHINGS - 0.6% Leggett & Piatt, Inc. 268,700 5,924,835 -------------- INDUSTRIAL CONGLOMERATES - 4.9% McDermott International, Inc. * 603,800 50,187,856 -------------- INTEGRATED OIL & GAS -1.6% Murphy Oil Corporation 279,000 16,583,760 -------------- LIFE & HEALTH INSURANCE - 0.5% KMG America Corporation * 905,400 4,753,350 -------------- MORTGAGE REIT'S - 2.1% HomeBanc Corporation 650,000 825,500 Luminent Mortgage Capital, Inc. 750,000 7,567,500
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - MID CAP VALUE SERIES June 30, 2007 (Unaudited) - continued
SHARES VALUE ---------- -------------- COMMON STOCK (continued) MORTGAGE REIT'S (CONTINUED) MFA Mortgage Investments, Inc. 1,200,000 $ 8,736,000 Opteum, Inc. (2) 1,474,400 4,010,368 -------------- 21,139,368 -------------- MULTI - LINE INSURANCE -1.3% American Financial Group, Inc. 382,500 13,062,375 -------------- MULTI-UTILITIES - 0.5% TECO Energy, Inc. 300,000 5,154,000 -------------- OIL & GAS DRILLING - 2.6% Helmerich & Payne, Inc. 743,500 26,334,770 -------------- OIL & GAS EQUIPMENT & SERVICES -1.4% Key Energy Services, Inc. * 780,000 14,453,400 -------------- OIL & GAS EXPLORATION & PRODUCTION -1.7% Gulfport Energy Corporation* 260,000 5,194,800 Newfield Exploration Company * 260,000 11,843,000 -------------- 17,037,800 -------------- OIL & GAS REFINING & MARKETING - 0.3% Nova Biosource Fuels, Inc. * (1) 1,354,900 3,454,995 -------------- OIL & GAS STORAGE & TRANSPORTATION -1.9% Williams Companies, Inc. (3) 617,000 19,509,540 -------------- PACKAGED FOODS & MEATS - 3.7% Hormel Foods Corporation 502,300 18,760,905 JM Smucker Company 305,000 19,416,300 -------------- 38,177,205 -------------- PAPER PACKAGING - 2.9% Bemis Company, Inc. 440,000 14,599,200 Sonoco Products Company 345,600 14,795,136 -------------- 29,394,336 -------------- PERSONAL PRODUCTS - 2.1% Alberto-Culver Company 180,000 4,269,600 Playtex Products, Inc. * (3) 1,150,000 17,031,500 -------------- 21,301,100 -------------- PROPERTY & CASUALTY INSURANCE - 4.4% Alleghany Corporation* 28,196 11,461,617 Employers Holdings, Inc. 250,000 5,310,000 Hanover Insurance Group, Inc. 212,000 10,343,480 North Pointe Holdings Corporation * (1)(2) 525,000 5,391,750 United America Indemnity, Ltd. * 154,500 3,842,415 W.R. Berkley Corporation 282,500 9,192,550 -------------- 45,541,812 -------------- REGIONAL BANKS - 3.9% Commerce Bancshares, Inc. 332,200 15,048,660 Whitney Holding Corporation 398,800 12,003,880 Wilmington Trust Corporation 310,000 12,868,100 -------------- 39,920,640 --------------
SHARES VALUE ---------- -------------- COMMON STOCK (continued) SEMICONDUCTOR EQUIPMENT - 0.6% Ultratech, Inc. * 476,200 $ 6,347,746 -------------- SEMICONDUCTORS -1.2% Applied Micro Circuits Corporation * 850,000 2,125,000 IXYS Corporation * 1,175,400 9,814,590 -------------- 11,939,590 -------------- SPECIALIZED CONSUMER SERVICES -1.1% Regis Corporation 309,200 11,826,900 -------------- SPECIALTY CHEMICALS -0.9% Minerals Technologies, Inc. 134,100 8,977,995 -------------- SPECIALTY STORES -0.2% Sally Beauty Holdings, Inc. * 180,000 1,620,000 -------------- THRIFTS & MORTGAGE FINANCE - 0.1% Clayton Holdings, Inc. * 97,700 1,112,803 -------------- TOTAL COMMON STOCK (Cost $724,310,114) $ 954,605,713 -------------- PREFERRED STOCK - 0.2% DIVERSIFIED METALS & MINING - 0.1% Arch Coal, Inc. 4,600 777,400 -------------- ENVIRONMENTAL & FACILITIES SERVICES - 0.1% ThermoEnergy Corporation PIPE * (1)(2)(4)(5) 1,745,000 1,221,500 -------------- METAL & GLASS CONTAINERS - 0.0% Owens-Illinois, Inc. 11,000 464,750 -------------- TOTAL PREFERRED STOCK (Cost $2,281,297) $ 2,463,650 -------------- WARRANTS - 0.1% WARRANTS -0.1% Lime Energy Company $1.00, 3/19/2009 29,517 34,842 Nova Biosource Fuels, Inc. $2.40, 7/5/2011 (1) 677,450 1,009,879 ThermoEnergy Corporation $0.75, 7/14/2008 (1)(2)(4) 1,745,000 350,919 -------------- 1,395,640 -------------- TOTAL WARRANTS (Cost $1,561,837) $ 1,395,640 --------------
PRINCIPAL AMOUNT VALUE ---------- -------------- CONVERTIBLE BOND - 0.4% NATURAL GAS - 0.4% Hanover Compressor Company 4.75%, 2008 $4,000,000 3,920,000 -------------- TOTAL CONVERTIBLE BOND (Cost $3,966,782) $ 3,920,000 --------------
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - MID CAP VALUE SERIES June 30, 2007 (Unaudited) - continued
PRINCIPAL AMOUNT VALUE ---------- -------------- U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES - 0.3% Federal Home Loan Bank 5.11%-2007 $3,000,000 $ 2,993,613 -------------- TOTAL U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES $ 2,993,613 (Cost $2,993,613) ASSET BACKED COMMERCIAL PAPER- 2.8% FINANCIAL COMPANIES - DIVERSIFIED - 0.5% Amsterdam Funding Corporation 5.26%, 7/12/2007 3,500,000 3,494,375 5.27%, 7/17/2007 1,800,000 1,795,796 -------------- 5,290,171 -------------- FINANCIAL COMPANIES - MISCELLANEOUS RECEIVABLES -1.5% Fairway Finance Corporation 5.29%, 7/3/2007 3,000,000 2,999,118 5.28%, 7/13/2007 3,400,000 3,394,016 Falcon Asset Securitization Corporation 5.26%, 7/18/2007 2,833,000 2,825,963 Jupiter Securitization Corporation 5.265%, 7/10/2007 3,400,000 3,395,521 5.255%, 7/20/2007 2,400,000 2,393,344 -------------- 15,007,962 -------------- FINANCIAL COMPANIES - TRADE & TERM RECEIVABLES - 0.4% Eureka Securitization 5.27%, 7/17/2007 1,700,000 1,696,018 5.26%, 7/18/2007 2,900,000 2,892,810 -------------- 4,588,828 -------------- FINANCIAL COMPANIES-TRADE RECEIVABLES - 0.4% Sheffield Receivables Corporation 5.27%, 7/2/2007 4,000,000 3,999,414 -------------- TOTAL ASSET BACKED COMMERCIAL PAPER $ 28,886,375 (Cost $28,886,375) -------------- COMMERCIAL PAPER - 3.4% AUTOMOTIVE -0.4% American Honda Finance 5.22%, 7/11/2007 4,000,000 3,994,200 BANKING -1.2% Bank of America 5.28%, 7/20/2007 2,000,000 1,994,427 Credit Suisse First Boston USA 3.849%, 7/17/2007 4,000,000 3,993,158 UBS Finance (Delaware) LLC 5.255%, 7/25/2007 1,700,000 1,694,044 UBS Finance (Deleware) LLC 5.28%, 7/19/2007 4,449,000 4,437,255 -------------- 12,118,884 --------------
PRINCIPAL AMOUNT VALUE ---------- -------------- COMMERCIAL PAPER (CONTINUED) BROKERAGE - 0.6% ING (US) Funding LLC 5.25%, 7/30/2007 2,500,000 $ 2,489,427 Merrill Lynch & Company, Inc. 5.24%, 7/6/2007 3,500,000 3,497,453 -------------- 5,986,880 -------------- ELECTRIC - 0.8% Florida Power & Light Company 5.30%, 7/23/2007 2,800,000 2,790,931 Southern Company 5.26%, 7/9/2007 3,622,000 3,617,766 5.29%, 7/25/2007 1,800,000 1,793,652 -------------- 8,202,349 -------------- PHARMACEUTICALS - 0.4% Abbott Laboratories 5.24%, 7/5/2007 4,000,000 3,997,671 -------------- TOTAL COMMERCIAL PAPER (Cost $34,299,984) $ 34,299,984 -------------- REPURCHASE AGREEMENT - 0.0% United Missouri Bank, 4.86%, dated 6/29/07, matures 7/02/07; repurchase amount $406,164 (Collateralized by FHLB, 5.10%, 9/19/08 with value of $414,800) $ 406,000 $ 406,000 -------------- TOTAL REPURCHASE AGREEMENT (Cost $406,000) $ 406,000 -------------- TOTAL INVESTMENTS (SECURITY EQUITY FUND -MID CAP VALUE SERIES) $1,028,970,975 (Cost $798,706,002) -100.3% LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% (2,960,645) -------------- TOTAL NET ASSETS -100.0% $1,026,010,330 ==============
FOOTNOTES Percentages are stated as a percent of net assets. For federal income tax purposes the identified cost of investments owned at 6/30/2007 was $798,706,002. * - Non-income producing security 1 - Security is deemed illiquid. See Note 5 in notes to financial statements. 2 - Investment in an affiliated issuer. See Note 6 in notes to financial statements. 3 - Security is segregated as collateral for open written option contracts. 4 - Security is restricted from resale. See Note 4 in notes to financial statements. 5 - PIPE (Private Investment in Public Equity) - Stock issued by a company in the secondary market as a means of raising capital more quickly and less expensively than through registration of a secondary public offering. See notes to financial statements. The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - SELECT 25 SERIES June 30, 2007 (Unaudited)
SHARES VALUE ---------- ------------ COMMON STOCK -98.4% AEROSPACE & DEFENSE - 3.3% L-3 Communications Holdings, Inc. 18,813 $ 1,832,198 ----------- AIR FREIGHT & LOGISTICS - 5.0% FedEx Corporation 24,943 2,767,925 ----------- BROADCASTING & CABLE TV - 1.5% CBS Corporation (CI.B) 25,626 853,858 ----------- COAL & CONSUMABLE FUELS - 1.9% Evergreen Energy, Inc. * 172,100 1,037,763 ----------- COMMUNICATIONS EQUIPMENT - 6.8% ADC Telecommunications, Inc. * 110,374 2,023,155 Cisco Systems, Inc. * 61,000 1,698,850 ----------- 3,722,005 ----------- CONSTRUCTION & ENGINEERING - 1.4% Shaw Group, Inc. * 17,154 794,059 ----------- CONSUMER FINANCE - 11.1% American Express Company 22,500 1,376,550 Capital One Financial Corporation 27,800 2,180,632 First Marblehead Corporation 65,413 2,527,558 ----------- 6,084,740 ----------- DATA PROCESSING & OUTSOURCED SERVICES - 5.5% First Data Corporation 40,346 1,318,104 Western Union Company 80,800 1,683,064 ----------- 3,001,168 ----------- ELECTRIC UTILITIES - 0.0% Progress Energy, Inc. - Contingent Value Obligation * 400 132 ----------- EXCHANGE TRADED FUNDS - 7.3% iShares Russell 1000 Growth Index Fund 33,886 2,006,390 iShares S&P 500 Growth Index Fund 29,500 2,026,355 ----------- 4,032,745 ----------- HOME IMPROVEMENT RETAIL - 5.6% Home Depot, Inc. 78,272 3,080,003 ----------- HOTELS, RESORTS & CRUISE LINES - 2.7% Carnival Corporation 30,333 1,479,340 ----------- HYPERMARKETS & SUPER CENTERS - 4.4% Wal-Mart Stores, Inc. 49,796 2,395,686 ----------- INDUSTRIAL GASES - 1.2% Praxair, Inc. 9,101 655,181 ----------- LIFE SCIENCES TOOLS & SERVICES - 5.4% Covance, Inc. * 43,592 2,988,667 ----------- MOVIES & ENTERTAINMENT - 1.1% Viacom, Inc. (CI.B) * 13,953 580,863 -----------
SHARES VALUE ---------- ------------ COMMON STOCK (continued) MULTI-LINE INSURANCE - 6.4% American International Group, Inc. 50,634 $ 3,545,899 ----------- OIL & GAS EQUIPMENT & SERVICES - 4.9% Baker Hughes, Inc. 8,500 715,105 BJ Services Company 70,477 2,004,366 ----------- 2,719,471 ----------- OIL & GAS STORAGE & TRANSPORTATION - 3.9% Williams Companies, Inc. 67,459 2,133,054 ----------- OTHER DIVERSIFIED FINANCIAL SERVICES - 3.3% Citigroup, Inc. 35,323 1,811,717 ----------- PHARMACEUTICALS - 4.8% Johnson & Johnson 42,617 2,626,060 ----------- SOFT DRINKS - 2.1% PepsiCo, Inc. 17,495 1,134,551 ----------- SYSTEMS SOFTWARE - 2.3% Microsoft Corporation 42,100 1,240,687 ----------- TRADING COMPANIES & DISTRIBUTORS - 6.5% W.W. Grainger, Inc. 38,653 3,596,662 ----------- TOTAL COMMON STOCK (Cost $47,287,574) $54,114,434 -----------
PRINCIPAL AMOUNT VALUE ---------- ----------- COMMERCIAL PAPER - 1.8% FINANCIAL COMPANIES - CAPTIVE - 1.8% International Lease Finance Company 5.32%, 7/3/2007 1,000,000 999,704 ----------- TOTAL COMMERCIAL PAPER (Cost $999,704) $ 999,704 ----------- Total Investments (Security Equity Fund - Select 25 $55,114,138 Series) (Cost $48,287,278) - 100.2% Liabilities in Excess of Other Assets - (0.2)% (108,860) ----------- TOTAL NET ASSETS - 100.0% $55,005,278 ===========
FOOTNOTES Percentages are stated as a percent of net assets. For federal income tax purposes the identified cost of investments owned at 6/30/2007 was $48,386,730. * - Non-income producing security See notes to financial statements. The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - SMALL CAP GROWTH SERIES June 30, 2007 (Unaudited)
SHARES VALUE ---------- ------------ COMMON STOCK - 97.9% AEROSPACE & DEFENSE - 5.5% BE Aerospace, Inc. * 18,360 $ 758,268 Ceradyne, Inc. * 6,730 497,751 Heico Corporation 24,620 1,036,009 Ladish Company, Inc. * 17,210 740,030 ----------- 3,032,058 ----------- AIRLINES -1.5% Allegiant Travel Company* 26,480 813,995 ----------- APPAREL RETAIL -1.5% Jos A. Bank Clothiers, Inc. * 8,676 359,794 Tween Brands, Inc. * 11,030 491,938 ----------- 851,732 ----------- APPAREL, ACCESSORIES & LUXURY GOODS - 1.0% Volcom, Inc. * 10,650 533,885 ----------- APPLICATION SOFTWARE - 4.4% Advent Software, Inc. * 27,500 895,125 Concur Technologies, Inc. * 35,180 803,863 Nuance Communications, Inc. * 33,150 554,599 PROS Holdings, Inc. * 14,000 183,400 ----------- 2,436,987 ----------- ASSET MANAGEMENT & CUSTODY BANKS - 1.3% FBR Capital Markets Corporation * 10,840 183,196 Penson Worldwide, Inc. * 22,050 540,886 724,082 ----------- AUTO PARTS & EQUIPMENT - 0.6% Amerigon, Inc. * 16,900 304,031 ----------- BROADCASTING & CABLE TV - 0.8% DG FastChannel, Inc. * 22,300 454,474 ----------- CASINOS & GAMING - 3.4% Century Casinos, Inc. * 77,540 697,085 Scientific Games Corporation * 34,080 1,191,096 ----------- 1,888,181 ----------- CONSTRUCTION & ENGINEERING - 1.0% Granite Construction, Inc. 8,350 535,903 ----------- DISTRIBUTORS - 0.8% LKQ Corporation * 18,710 461,389 ----------- EDUCATION SERVICES - 1.4% DeVry, Inc. 22,470 764,429 ----------- ENVIRONMENTAL & FACILITIES SERVICES - 2.5% Rollins, Inc. 30,180 687,199 Team, Inc. * 14,830 666,905 ----------- 1,354,104 -----------
SHARES VALUE ---------- ------------ COMMON STOCK (continued) EXCHANGE TRADED FUNDS - 1.9% iShares Russell 2000 Growth Index Fund 12,210 $ 1,047,374 ----------- FOOTWEAR - 1.9% CROCS, Inc. * 6,740 290,022 Iconix Brand Group, Inc. * 34,380 763,924 ----------- 1,053,946 ----------- HEALTH CARE EQUIPMENT - 10.6% American Medical Systems Holdings, Inc. * 35,720 644,389 Integra LifeSciences Holdings Corporation * 10,770 532,253 Kyphon, Inc. * 9,670 465,611 LeMaitre Vascular, Inc. * 92,090 552,540 Micrus Endovascular Corporation * 38,880 956,448 NuVasive, Inc. * 26,390 712,794 Resmed, Inc. * 15,760 650,258 Spectranetics Corporation * 81,220 935,654 Volcano Corporation * 19,010 384,192 ----------- 5,834,139 ----------- HEALTH CARE FACILITIES - 1.1% NovaMed, Inc. * 101,380 613,349 ----------- HEALTH CARE SERVICES - 2.8% Healthways, Inc. * 12,530 593,546 HMS Holdings Corporation * 18,650 356,961 Pediatrix Medical Group, Inc. * 10,420 574,663 ----------- 1,525,170 ----------- HEALTH CARE SUPPLIES - 1.1% PolyMedica Corporation 15,462 631,623 ----------- HEALTH CARE TECHNOLOGY - 2.6% Phase Forward, Inc. * 15,240 256,489 Systems Xcellence, Inc. * 18,420 529,944 Trizetto Group * 32,270 624,747 ----------- 1,411,180 ----------- HOME ENTERTAINMENT SOFTWARE - 2.7% The9, Ltd. ADR * 17,470 808,162 THQ, Inc. * 22,490 686,395 ----------- 1,494,557 ----------- HOTELS, RESORTS & CRUISE LINES - 0.9% Home Inns & Hotels Management, Inc. ADR * 15,550 500,865 ----------- HUMAN RESOURCE & EMPLOYMENT SERVICES - 1.6% Barrett Business Services, Inc. 33,130 855,748 ----------- INDUSTRIAL MACHINERY - 2.1% Dynamic Materials Corporation 10,090 378,375 Flow International Corporation * 61,310 772,506 ----------- 1,150,881 -----------
The accompanying notes are an integral part of the financial statements. SCHEDULE OF INVESTMENTS SECURITY EQUITY FUND - SMALL CAP GROWTH SERIES June 30, 2007 (Unaudited) - continued
SHARES VALUE ---------- ------------ COMMON STOCK (continued) INTEGRATED TELECOMMUNICATION SERVICES - 1.7% Cbeyond, Inc. * 24,920 $ 959,669 ----------- INTERNET RETAIL - 1.9% NutriSystem, Inc. * 14,790 1,032,934 ----------- INTERNET SOFTWARE & SERVICES - 14.0% Cybersource Corporation* 81,070 977,704 DealerTrack Holdings, Inc. * 15,880 585,019 Digital River, Inc. * 9,860 446,165 Equinix, Inc. * 8,615 788,014 j2 Global Communications, Inc. * 32,930 1,149,257 LoopNet, Inc. * 14,140 329,886 Marchex, Inc. (CI.B) 38,840 633,869 NaviSite, Inc. * 103,670 787,892 Online Resources Corporation * 54,830 602,034 Perficient, Inc. * 35,290 730,503 RADVision, Ltd. * 31,770 668,123 ----------- 7,698,466 ----------- INVESTMENT BANKING & BROKERAGE - 2.2% Investment Technology Group, Inc.* 17,970 778,640 optionsXpress Holdings, Inc. 17,560 450,590 ----------- 1,229,230 ----------- LEISURE FACILITIES - 1.3% Life Time Fitness, Inc. * 13,640 726,057 ----------- OIL & GAS EQUIPMENT & SERVICES - 5.3% Core Laboratories N.V. * 8,070 820,638 Dril-Quip, Inc. * 11,310 508,384 Oil States International, Inc. * 20,250 837,135 Superior Energy Services, Inc. * 19,230 767,662 ----------- 2,933,819 ----------- PACKAGED FOODS & MEATS - 0.8% SunOpta, Inc. * 39,840 444,216 ----------- PERSONAL PRODUCTS - 0.4% American Oriental Bioengineering, Inc.* 26,290 233,981 ----------- PHARMACEUTICALS - 2.6% KV Pharmaceutical Company * 32,300 879,852 Medicis Pharmaceutical Corporation 17,200 525,288 ----------- 1,405,140 ----------- PROPERTY & CASUALTY INSURANCE - 2.7% Amtrust Financial Services, Inc. 26,530 498,499 Security Capital Assurance, Ltd. 32,590 1,006,053 ----------- 1,504,552 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.0% FirstService Corporation * 15,020 541,020 -----------
SHARES VALUE ---------- ------------ COMMON STOCK (continued) SEMICONDUCTOR EQUIPMENT - 2.3% Formfactor, Inc. * 9,480 $ 363,084 Tessera Technologies, Inc. * 10,220 414,421 Varian Semiconductor Equipment Associates, Inc. * 11,865 475,312 ----------- 1,252,817 ----------- SEMICONDUCTORS - 0.9% Atheros Communications, Inc. * 16,180 498,991 ----------- SPECIALIZED CONSUMER SERVICES - 1.3% Steiner Leisure, Ltd. * 14,330 703,890 ----------- SPECIALIZED FINANCE - 1.5% Portfolio Recovery Associates, Inc. 14,020 841,480 ----------- STEEL - 0.9% AM Castle & Company 14,490 520,336 ----------- TRADING COMPANIES & DISTRIBUTORS - 1.2% Houston Wire & Cable Company * 22,760 646,612 ----------- TRUCKING - 0.9% Old Dominion Freight Line, Inc. * 16,990 512,248 ----------- TOTAL COMMON STOCK (Cost $43,966,598) $53,959,540 ===========
PRINCIPAL AMOUNT VALUE ---------- ----------- REPURCHASE AGREEMENT - 2.7% United Missouri Bank, 4.86%, dated 6/29/07, matures 7/02/07; repurchase amount $1,459,591 (Collateralized by FHLB, 5.00%, 9/12/08 with a value of $1,491,758) $1,459,000 $ 1,459,000 ----------- TOTAL REPURCHASE AGREEMENT (Cost $1,459,000) $ 1,459,000 ----------- TOTAL INVESTMENTS (SECURITY EQUITY FUND - SMALL CAP GROWTH SERIES) $55,418,540 (COST $45,425,598) - 100.6% LIABILITIES IN EXCESS OF OTHER ASSETS - (0.6)% (312.589) ----------- TOTAL NET ASSETS - 100.0% $55,105,951 ===========
FOOTNOTES Percentages are stated as a percent of net assets. For federal income tax purposes the identified cost of investments owned at 6/30/2007 was $45,656,945. * - Non-income producing security Glossary: ADR - American Depositary Receipt See notes to financial statements. The accompanying notes are an integral part of the financial statements. NOTES TO FINANCIAL STATEMENTS 1. UNREALIZED APPRECIATION/DEPRECIATION ON INVESTMENTS For federal income tax purposes, the amounts of unrealized appreciation (depreciation) on investments at June 30, 2007, were as follows:
GROSS GROSS NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION (DEPRECIATION) (DEPRECIATION) ------------ -------------- -------------- Security Equity Fund: Alpha Opportunity Series $ 166,373 $ (316,193) $ (149,820) Equity Series 98,046,066 (12,307,966) 85,738,100 Global Series 57,860,466 (1,834,339) 56,026,127 Mid Cap Value Series 276,107,130 (45,842,157) 230,264,973 Select 25 Series 7,980,646 (1,253,238) 6,727,408 Small Cap Growth Series 10,674,064 (912,469) 9,761,595
2. OPEN FUTURES CONTRACTS Open futures contracts for Alpha Opportunity Series as of June 30, 2007 were as follows:
NUMBER OF EXPIRATION CONTRACT MARKET UNREALIZED POSITION CONTRACTS DATE AMOUNT VALUE GAIN/(LOSS) -------- --------- ---------- ---------- ----------- ------------ ALPHA OPPORTUNITY SERIES S&P 500 Index Future Long 33 09-21-2007 12,678,390 $12,502,050 $(176,340)
3. OPTIONS WRITTEN The following options written were outstanding for Mid Cap Value Series at June 30, 2007: MID CAP VALUE SERIES CALL OPTIONS WRITTEN OUTSTANDING
EXPIRATION EXERCISE NUMBER OF MARKET COMMON STOCK DATE PRICE CONTRACTS VALUE ------------ ---------- -------- --------- ---------- Allete, Inc. 7/21/2007 $50.00 705 $ 3,525 Playtex Products, Inc. 10/20/2007 15.00 3,800 399,000 Quanta Services, Inc. 8/18/2007 30.00 1,750 341,250
Shaw Group, Inc. 10/20/2007 35.00 1,767 2,120,400 USEC, Inc. 7/21/2007 15.00 3,323 2,259,640 10/20/2007 22.50 2,505 588,675 Williams Companies, Inc. 8/18/2007 30.00 1,840 460,000 8/18/2007 32.50 1,700 178,500 ------ ---------- Total call options outstanding (premiums received, $2,890,837) 17,390 $6,350,990 ====== ==========
4. RESTRICTED SECURITIES As of June 30, 2007, the following funds contained restricted securities. Market value, cost, percentage of total net assets and acquisition dates are as follows:
NUMBER PRICE PER MARKET % OF ACQUISITION OF SHARES SHARE VALUE COST NET ASSETS DATES --------- --------- ---------- ---------- ---------- ----------- MID CAP VALUE ThermoEnergy Corporation PIPE 1,745,000 $ 0.70 $1,221,500 $1,646,500 0.1% 07-14-05 ThermoEnergy Corporation Warrant 1,745,000 0.2011 350,919 447,500 0.0% 07-14-05
These securities have been valued after considering certain pertinent factors, including the results of operations since the date of purchase, and the recent sales price of its common stock. No quoted market price exists for these shares. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material. NOTES TO FINANCIAL STATEMENTS (CONTINUED) 5. ILLIQUID SECURITIES As of June 30, 2007, the following funds contained securities that were considered Illiquid. Market value, cost and percentage of total net assets are as follows:
MARKET % OF VALUE COST NET ASSETS ----------- ----------- ---------- Mid Cap Value Series $28,286,563 $29,131,469 2.8%
6. AFFILIATED ISSUERS Investments representing 5% or more of the outstanding voting securities of a portfolio company of a fund result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act. The aggregate market value of all securities of affiliated companies held in Mid Cap Value Series as of June 30, 2007 amounted to $32,125,009 which represents 3.1% of net assets. There were no affiliated companies held in any other Series. Transactions in Mid Cap Value Series during the period ended June 30, 2007 in which the portfolio company is an "affiliated person" are as follows:
NORTH POINTE THERMOENERGY THERMOENERGY HYDROGEN MERIX HOLDINGS OPTEUM, QUIXOTE CORPORATION CORPORATION CORPORATION CORPORATION CORPORATION INC. CORPORATION PIPE WARRANT ----------- ----------- ----------- ----------- ----------- ------------ ------------ SEPTEMBER 30, 2006 Balance Shares 732,850 1,476,000 470,000 1,474,400 239,650 1,745,000 1,745,000 Cost $3,536,282 $15,588,034 $5,861,235 $16,310,457 $4,601,122 $1,646,500 $ 447,500 Gross Additions Shares 107,450 -- 55,000 -- 239,450 -- -- Cost $ 518,082 $ -- $ 547,750 $ -- $4,716,905 $ -- $ -- Gross Reductions Shares -- (410,100) -- -- -- -- -- Cost $ -- $(4,150,197) $ -- $ -- $ -- -- $ -- JUNE 30, 2007 Balance Shares 840,300 1,065,900 525,000 1,474,400 479,100 1,745,000 1,745,000 Cost $4,054,364 $11,437,837 $6,408,985 $16,310,457 $9,318,027 $1,646,500 $ 447,500 Realized Gain/(Loss) $ -- $ -- $ -- $ -- $ -- $ -- $ -- Investment Income $ -- $ -- $ -- $ 147,440 $ 136,563 $ -- $ --
* As a result of Mid Cap Value Series' beneficial ownership of the common stock of these portfolio companies, applicable regulations require that the Series state that it may be deemed an affiliate of the respective portfolio company. The Series disclaims that the "affliated persons" are affiliates of the Distributor, Advisor, Series or any other client of the Advisor. 7. SECURITY VALUATION SECURITY VALUATION - Valuations of the Fund's securities are supplied by pricing services approved by the Board of Directors. The Fund's officers, under the general supervision of the Board of Directors, regularly review procedures used by, and valuations provided by, the pricing services. Each security owned by a Fund that is listed on a securities exchange is valued at its last sale price on that exchange on the date as of which assets are valued. Where the security is listed on more than one exchange, the Fund will use the price of that exchange that it generally considers to be the principal exchange on which the stock is traded. Fund securities listed on the Nasdaq Stock Market, Inc. ("Nasdaq") will be valued at the Nasdaq Official Closing Price. Securities for which market quotations are not readily available are valued by a pricing service considering securities with similar yields, quality, type of issue, coupon, duration and rating. If there is no bid price or if the bid price is deemed to be unsatisfactory by the Board of Directors or by the Fund's investment manager, then the securities are valued in good faith by such method as the Board of Directors determines will reflect the fair value. If events occur that will affect the value of a fund's portfolio securities before the NAV has been calculated (a "significant event"), the security will generally be priced using a fair value procedure. If the Valuation Committee determines a significant event has occurred, it will evaluate the impact of that event on an affected security or securities, to determine whether a fair value adjustment would materially affect the fund's NAV per share. Some of the factors which may be considered by the Board of Directors in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. The Fund generally will value short-term debt securities at prices based on market quotations for such securities or securities of similar type, yield, quality and duration, except those securities purchased with 60 days or less to maturity are valued on the basis of amortized cost which approximates market value. Generally, trading in foreign securities markets is substantially completed each day at various times prior to the close of the New York Stock Exchange. The values of foreign securities are determined as of the close of such foreign markets or the close of the New York Stock Exchange, if earlier. All investments quoted in foreign currency are valued in U.S. dollars on the basis of the foreign currency exchange rates prevailing at the close of business. Investments in foreign securities may involve risks not present in domestic investments. The Valuation Committee will determine the current value of such foreign securities by taking into consideration certain factors which may include those discussed above, as well as the following factors, among others: the value of the securities traded on other foreign markets, ADR trading, closed-end fund trading, foreign currency exchange activity, and the trading prices of financial products that are tied to foreign securities such as WEBS. In addition, the Board of Directors has authorized the Valuation Committee and Administrator to use prices and other information supplied by IDC's Fair Value Information Service in valuing such securities. Since foreign securities may be denominated in a foreign currency and involve settlement and pay interest or foreign dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Series to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. Please refer to the Fund's most recent semi-annual or annual financial statements for information regarding the Fund's significant accounting policies. ITEM 2. CONTROLS AND PROCEDURES. (a) The registrant's President and Treasurer have concluded that the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q. (b) There were no significant changes in the registrant's internal controls, or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 3. EXHIBITS. (a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SECURITY EQUITY FUND By: /s/ Thomas A. Swank ------------------------------------ Thomas A. Swank, President Date: August 29, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Thomas A. Swank ------------------------------------ Thomas A. Swank, President Date: August 29, 2007 By: /s/ Brenda M. Harwood ------------------------------------ Brenda M. Harwood, Treasurer Date: August 29, 2007