N-Q 1 c35152nvq.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS nvq
Table of Contents

 
 
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)
RICHARD M. GOLDMAN, 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, 2008
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§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. §3507.
 
 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Item 3. Exhibits
SIGNATURES
Certification

Table of Contents

Item 1. Schedule of Investments.
     
Schedule of Investments   Security Equity Fund — Alpha Opportunity Series
June 30, 2008 (Unaudited)    
                 
    Shares     Value  
COMMON STOCK - 31.3%
                
Aerospace & Defense - 0.1%
                
Hexcel Corporation *
     1,362     $ 26,287  
 
              
Agricultural Products - 1.4%
                
Bunge, Ltd. (1)
     6,128       659,924  
Fresh Del Monte Produce, Inc. *
     264       6,223  
 
              
 
             666,147  
 
              
Airlines - 0.3%
                
Southwest Airlines Company
     10,785       140,636  
 
              
Aluminum - 0.2%
                
Alcoa, Inc.
     2,530       90,119  
 
              
Apparel Retail - 0.8%
                
Ross Stores, Inc.
     7,018       249,279  
Urban Outfitters, Inc. *
     3,793       118,304  
 
              
 
             367,583  
 
              
Apparel, Accessories & Luxury Goods - 0.6%
                
Polo Ralph Lauren Corporation
     4,653       292,115  
 
              
Application Software - 0.8%
                
Salesforce.com, Inc. *
     3,911       266,847  
SAP AG ADR
     1,099       57,269  
Synopsys, Inc. *
     2,501       59,799  
 
              
 
             383,915  
 
              
Biotechnology - 0.5%
                
BioMarin Pharmaceutical, Inc. *
     1,610       46,658  
Gilead Sciences, Inc. *
     3,025       160,174  
 
              
 
             206,832  
 
              
Building Products - 0.3%
                
 
              
Owens Corning, Inc. *
     7,045       160,274  
 
              
Commodity Chemicals - 0.0%
                
Braskem S.A. ADR
     989       15,696  
 
              
Communications Equipment - 0.2%
                
Qualcomm, Inc.
     2,168       96,194  
 
              
Computer Storage & Peripherals - 0.4%
                
Western Digital Corporation *
     5,906       203,934  
 
              
Construction & Engineering - 2.2%
                
Empresas ICA SAB de CV ADR *
     491       12,196  
Foster Wheeler, Ltd. *
     4,857       355,289  
Jacobs Engineering Group, Inc. *
     2,168       174,958  
KBR, Inc.
     5,210       181,881  
Quanta Services, Inc. *
     4,447       147,952  
Shaw Group, Inc. *
     2,683       165,783  
 
              
 
             1,038,059  
 
              
Construction & Farm Machinery & Heavy Trucks - 0.5%
                
Joy Global, Inc.
     2,709       205,423  
Kubota Corporation ADR
     1,006       36,005  
 
              
 
             241,428  
 
              
Construction Materials - 0.4%
                
Texas Industries, Inc.
     2,988       167,717  
 
              
Consumer Electronics - 0.3%
                
Matsushita Electric Industrial Company, Ltd. ADR
     4,025       86,215  
Sony Corporation ADR
     1,316       57,562  
 
              
 
             143,777  
 
              
Diversified Banks - 1.4%
                
Banco Santander Chile S.A. ADR
     631       27,139  
Mizuho Financial Group, Inc. ADR
     5,378       49,854  
New York Community Bancorp, Inc.*
     5,334       95,159  
U.S. Bancorp (1)
     16,878       470,727  
 
              
 
             642,879  
 
              
Diversified Metals & Mining - 1.4%
                
Freeport-McMoRan Copper & Gold, Inc. (CI.B)
     2,172       254,537  
Southern Copper Corporation
     442       47,130  
Teck Cominco, Ltd. (CI.B)
     7,667       367,633  
 
              
 
             669,300  
 
              
Electric Utilities - 0.3%
                
Exelon Corporation
     1,571       141,327  
 
              
Electrical Components & Equipment - 0.8%
                
Emerson Electric Company
     1,542       76,252  
Powell Industries, Inc. *
     1,029       51,872  
Roper Industries, Inc.
     2,872       189,207  
Solarfun Power Holdings Company, Ltd. ADR *
     3,097       54,198  
 
              
 
             371,529  
 
              
Electronic Equipment Manufacturers - 0.4%
                
Itron, Inc. *
     1,767       173,785  
 
              
Exchange Traded Funds - 4.9%
                
Claymore
     12,571       241,237  
iShares MSCI Hong Kong Index Fund
     1,935       32,760  
iShares Silver Trust * (1)
     3,794       654,579  
Market Vectors Agribusiness ETF *
     7,183       442,688  
Market Vectors Steel Index Fund
     2,671       282,805  
Powershares QQQ
     8,316       375,634  
SPDR Gold Trust *
     2,710       247,694  
 
              
 
             2,277,397  
 
              
Heavy Electrical Equipment - 0.2%
                
ABB, Ltd. ADR *
     3,870       109,598  
 
              
Home Entertainment Software - 0.1%
                
Shanda Interactive Entertainment, Ltd. ADR *
     999       27,123  
 
              
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Alpha Opportunity Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
COMMON STOCK (continued)
                
Hypermarkets & Super Centers - 0.5%
                
BJ’s Wholesale Club, Inc. *
     5,710     $ 220,977  
 
              
Independent Power Producers & Energy Traders - 1.0%
                
Dynegy, Inc. *
     18,354       156,927  
Mirant Corporation *
     2,168       84,877  
NRG Energy, Inc. *
     988       42,385  
Ormat Technologies, Inc.
     3,579       176,015  
 
              
 
             460,204  
 
              
Industrial Conglomerates - 0.3%
                
Otter Tail Corporation
     4,022       156,174  
 
              
Industrial Machinery - 1.7%
                
Dover Corporation
     5,176       250,363  
Eaton Corporation
     1,542       131,024  
Flowserve Corporation
     1,029       140,664  
Harsco Corporation
     2,090       113,717  
Timken Company
     4,335       142,795  
 
              
 
             778,563  
 
              
Integrated Oil & Gas - 2.9%
                
Hess Corporation
     3,231       407,720  
Petroleo Brasileiro S.A. ADR (1)
     11,608       822,195  
Suncor Energy, Inc.
     1,626       94,503  
 
              
 
             1,324,418  
 
              
Integrated Telecommunication Services - 0.1%
                
Telefonos de Mexico SAB de CV ADR
     1,412       33,436  
 
              
Internet Software & Services - 0.5%
                
GigaMedia, Ltd. *
     1,627       19,410  
j2 Global Communications, Inc. *
     1,542       35,466  
Open Text Corporation *
     3,451       110,777  
Sina Corporation *
     1,489       63,357  
 
              
 
             229,010  
 
              
IT Consulting & Other Services - 0.0%
                
Wipro, Ltd. ADR
     1,607       19,573  
 
              
Metal & Glass Containers - 0.4%
                
Crown Holdings, Inc. *
     6,503       169,013  
 
              
Oil & Gas Drilling - 0.6%
                
Rowan Companies, Inc.
     5,419       253,338  
 
              
Oil & Gas Equipment & Services - 1.2%
                
Cameron International Corporation *
     1,626       89,999  
Schlumberger, Ltd. (1)
     4,335       465,709  
 
              
 
             555,708  
 
              
Oil & Gas Exploration & Production - 0.9%
                
Carrizo Oil & Gas, Inc. *
     5,409       368,299  
Nexen, Inc.
     1,350       53,662  
 
              
 
             421,961  
 
              
Packaged Foods & Meats - 0.2%
                
HQ Sustainable Maritime Industries, Inc. *
     604       8,003  
Tyson Foods, Inc.
     4,329       64,675  
 
              
 
             72,678  
 
              
Paper Products - 0.1%
                
Votorantim Celulose e Papel S.A. ADR
     1,260       33,655  
 
              
Property & Casualty Insurance - 0.1%
                
Progressive Corporation
     3,252       60,878  
 
              
Semiconductors -0.5%
                
Advanced Semiconductor Engineering, Inc. ADR
     598       2,661  
Himax Technologies, Inc. ADR
     1,350       6,912  
Taiwan Semiconductor Manufacturing Company, Ltd. ADR
     21,201       231,303  
 
              
 
             240,876  
 
              
Specialized REIT’s - 0.3%
                
Plum Creek Timber Company, Inc.
     3,251       138,850  
 
              
Steel - 0.9%
                
Commercial Metals Company
     2,059       77,624  
Steel Dynamics, Inc.
     8,625       336,979  
 
              
 
             414,603  
 
              
Trucking - 0.5%
                
J.B. Hunt Transport Services, Inc.
     5,702       189,763  
Knight Transportation, Inc. *
     3,170       58,011  
 
              
 
             247,774  
 
              
Wireless Telecommunication Services - 0.1%
                
Millicom International Cellular S.A.
     232       24,012  
 
TOTAL COMMON STOCK (Cost $15,100,857)
           $ 14,509,352  
 
                 
    Principal        
    Amount     Value  
U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES - 46.8%
                
Federal Home Loan Bank
                
1.98% - 2008 (1)
   $ 750,000       749,732  
2.13% - 2008 (1)
     750,000       749,423  
2.18% - 2008 (1)
     550,000       548,228  
2.19% - 2008 (1)
     275,000       274,148  
2.21% - 2008 (1)
     1,250,000       1,244,638  
2.30% - 2008 (1)
     400,000       397,972  
2.35% - 2008 (1)
     1,150,000       1,144,543  
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Alpha Opportunity Series
June 30, 2008 (Unaudited) — continued    
                 
    Principal        
    Amount     Value  
U.S. GOVERNMENT SPONSORED AGEN CY BONDS & NOTES (continued)
                
Federal Home Loan Mortgage Corporation
                
2.01% - 2008 (1)
   $ 225,000     $ 224,526  
2.11% - 2008 (1)
     600,000       598,476  
2.11% - 2008 (1)
     50,000       49,851  
2.23% - 2008 (1)
     250,000       249,086  
2.34% - 2008 (1)
     700,000       696,542  
Federal National Mortgage Association
                
1.897% - 2008 (1)
     1,450,000       1,450,000  
2.00% - 2008 (1)
     850,000       848,368  
2.00% - 2008 (2)
     1,200,000       1,197,922  
2.02% - 2008 (1)
     400,000       399,809  
2.04% - 2008 (2)
     1,150,000       1,147,435  
2.04% - 2008 (1)
     500,000       499,552  
2.05% - 2008 (1)
     700,000       699,482  
2.08% - 2008 (1)
     500,000       499,403  
2.08% - 2008 (1)
     500,000       499,283  
2.15% - 2008 (1)
     500,000       498,607  
2.17% - 2008 (1)
     200,000       198,986  
2.17% - 2008 (1)
     1,500,000       1,496,835  
2.25% - 2008 (1)
     1,500,000       1,495,355  
2.25% - 2008 (1)
     1,500,000       1,494,518  
2.30% - 2008 (1)
     1,000,000       995,905  
2.30% - 2008 (1)
     1,200,000       1,194,852  
2.34% - 2008 (1)
     200,000       199,077  
 
TOTAL U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES
           $ 21,742,554  
(Cost $21,743,876)
                
 
Total Investments (Security Equity Fund - Alpha Opportunity Series)
           $ 36,251,906  
(Cost $36,844,733) - 78.1%
                
Other Assets in Excess of Liabilities - 21.9%
             10,161,054  
 
              
TOTAL NET ASSETS - 100.0%
           $ 46,412,960  
 
              
Schedule of Securities Sold Short
June 30, 2008
Security Equity Fund - Alpha Opportunity Series
                 
    Shares     Value  
COMMON STOCK - (3.4)%
                
Apparel Retail - (0.1)%
                
AnnTaylor Stores Corporation *
     (427 )   $ (10,231 )
Bebe Stores, Inc.
     (1,743 )     (16,750 )
 
              
 
             (26,981 )
 
              
Biotechnology - (0.3)%
                
Amgen, Inc. *
     (3,419 )     (161,240 )
 
              
Consumer Electronics - (0.1)%
                
Garmin, Ltd.
     (736 )     (31,530 )
 
              
Data Processing & Outsourced Services - 0.0%
                
Automatic Data Processing, Inc.
     (427 )     (17,891 )
 
              
Department Stores - (0.1)%
                
Kohl’s Corporation *
     (855 )     (34,234 )
 
              
Distillers & Vintners - (0.1)%
                
Constellation Brands, Inc. *
     (1,705 )     (33,861 )
 
              
Education Services - 0.0%
                
Apollo Group, Inc. *
     (427 )     (18,899 )
 
              
Electric Utilities - (0.2)%
                
Progress Energy, Inc.
     (2,178 )     (91,106 )
 
              
Electronic Manufacturing Services - (0.2)%
                
Benchmark Electronics, Inc. *
     (611 )     (9,984 )
Jabil Circuit, Inc.
     (5,264 )     (86,382 )
 
              
 
             (96,366 )
 
              
Exchange Traded Funds - (1.0)%
                
iShares Lehman 20+ Year Treasury
     (4,275 )     (394,754 )
iShares Lehman 7-10 Year
     (427 )     (37,576 )
Vanguard Total Bond Market ETF
     (405 )     (30,869 )
 
              
 
             (463,199 )
 
              
Footwear - (0.1)%
                
K-Swiss, Inc.
     (2,071 )     (30,444 )
 
              
Health Care Equipment - (0.1)%
                
Stryker Corporation
     (436 )     (27,416 )
 
              
Integrated Oil & Gas - (0.3)%
                
Exxon Mobil Corporation
     (1,710 )     (150,702 )
 
              
Marine Ports & Services - (0.2)%
                
DryShips, Inc.
     (855 )     (68,554 )
 
              
Motorcycle Manufacturers - 0.0%
                
Harley-Davidson, Inc.
     (427 )     (15,483 )
 
              
Multi-Utilities - (0.1)%
                
DTE Energy Company
     (1,282 )     (54,408 )
 
              
Real Estate Management & Development - 0.0%
                
Consolidated-Tomoka Land
     (118 )     (4,963 )
 
              
Restaurants - (0.1)%
                
Starbucks Corporation *
     (4,153 )     (65,368 )
 
              
Retail REIT’s - (0.2)%
                
General Growth Properties, Inc.
     (2,152 )     (75,385 )
 
              
Semiconductors - 0.0%
                
Cree, Inc. *
     (427 )     (9,740 )
 
              
Specialized Consumer Services - (0.1)%
                
Sotheby’s
     (855 )     (22,546 )
 
              
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Alpha Opportunity Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
COMMON STOCK (continued)
                
Specialty Chemicals - 0.0%
                
Ecolab, Inc.
     (427 )   $ (18,357 )
 
              
Technology Distributors - (0.1)%
                
Arrow Electronics, Inc. *
     (427 )     (13,118 )
Avnet, Inc. *
     (855 )     (23.324 )
 
              
 
             (36,442 )
 
TOTAL COMMON STOCK
           $ (1,555,115 )
(Proceeds $1,552,851)
                
 
Total Securities Sold Short (Security Equity Fund -
                
(Proceeds $1,552,851)
           $ (1,555,115 )
 
              
Footnotes
Percentages are stated as a percent of net assets.

For federal income tax purposes the identified cost of investments owned at 6/30/2008 was $36,940,271.
 
*   - 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
See notes to financial statements.
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Equity Series
June 30, 2008 (Unaudited)    
                 
    Shares     Value  
COMMON STOCK - 98.0%
                
Advertising - 1.1%
                
Omnicom Group, Inc.
     61,110     $ 2,742,617  
 
              
Aerospace & Defense - 3.7%
                
Honeywell International, Inc.
     104,080       5,233,142  
United Technologies Corporation
     68,900       4,251,130  
 
              
 
             9,484,272  
 
              
Air Freight & Logistics - 1.5%
                
FedEx Corporation
     49,200       3,876,468  
 
              
Asset Management & Custody Banks - 1.5%
                
Bank of New York Mellon Corporation
     102,935       3,894,031  
 
              
Biotechnology - 4.5%
                
Celgene Corporation *
     97,875       6,251,276  
Gilead Sciences, Inc. *
     104,295       5,522,420  
 
              
 
             11,773,696  
 
              
Broadcasting & Cable TV - 0.3%
                
CBS Corporation
     47,000       915,560  
 
              
Building Products - 1.7%
                
USG Corporation *
     151,800       4,488,726  
 
              
Communications Equipment - 3.5%
                
Cisco Systems, Inc. *
     170,095       3,956,410  
Corning, Inc.
     220,765       5,088,633  
 
              
 
             9,045,043  
 
              
Computer Hardware - 4.7%
                
Apple, Inc. *
     33,530       5,614,263  
Hewlett-Packard Company
     147,035       6,500,418  
 
              
 
             12,114,681  
 
              
Construction & Farm Machinery & Heavy Trucks - 2.1%
                
Deere & Company
     73,990       5,336,899  
 
              
Construction Materials - 0.5%
                
Vulcan Materials Company
     19,800       1,183,644  
 
              
Consumer Finance - 1.6%
                
Capital One Financial Corporation
     85,100       3,234,651  
First Marblehead Corporation
     334,900       860,693  
 
              
 
             4,095,344  
 
              
Data Processing & Outsourced Services - 1.5%
                
Western Union Company
     154,400       3,816,768  
 
              
Department Stores - 0.7%
                
JC Penney Company, Inc.
     50,900       1,847,161  
 
              
Diversified Banks - 2.0%
                
Wells Fargo & Company
     216,510       5,142,113  
 
              
Diversified Chemicals - 0.7%
                
Dow Chemical Company
     49,600       1,731,536  
 
              
Diversified Commercial & Professional Services - 0.5%
                
Equifax, Inc.
     39,000       1,311,180  
 
              
Drug Retail - 3.3%
                
CVS Caremark Corporation
     216,885       8,582,139  
 
              
Electric Utilities - 1.0%
                
Edison International
     49,800       2,558,724  
 
              
Electrical Components & Equipment - 2.0%
                
Emerson Electric Company
     102,730       5,079,998  
 
              
Electronic Manufacturing Services - 0.4%
                
Tyco Electronics, Ltd.
     32,800       1,174,896  
 
              
Exchange Traded Funds - 1.7%
                
iShares Russell 1000 Value Index Fund
     31,700       2,188,885  
iShares S&P 500 Value Index Fund
     33,800       2,142,920  
 
              
 
             4,331,805  
 
              
Fertilizers & Agricultural Chemicals - 3.0%
                
Monsanto Company
     25,855       3,269,106  
Mosaic Company
     30,305       4,385,134  
 
              
 
             7,654,240  
 
              
Footwear - 1.5%
                
Nike, Inc. (CI.B)
     65,135       3,882,697  
 
              
Health Care Equipment - 1.4%
                
Covidien, Ltd.
     33,800       1,618,682  
Hospira, Inc. *
     52,700       2,113,797  
 
              
 
             3,732,479  
 
              
Health Care Services - 0.8%
                
Medco Health Solutions, Inc. *
     44,800       2,114,560  
 
              
Home Improvement Retail - 1.6%
                
Home Depot, Inc.
     48,000       1,124,160  
Lowe’s Companies, Inc.
     145,900       3,027,425  
 
              
 
             4,151,585  
 
              
Hypermarkets & Super Centers - 3.4%
                
Costco Wholesale Corporation
     42,500       2,980,950  
Wal-Mart Stores, Inc.
     102,200       5,743,640  
 
              
 
             8,724,590  
 
              
Industrial Conglomerates - 4.2%
                
General Electric Company
     134,800       3,597,812  
McDermott International, Inc. *
     32,400       2,005,236  
Textron, Inc.
     83,355       3,995,205  
Tyco International, Ltd.
     29,100       1,165,164  
 
              
 
             10,763,417  
 
              
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Equity Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
COMMON STOCK (continued)
                
Industrial Gases - 1.7%
                
Air Products & Chemicals, Inc.
     44,390     $ 4,388,395  
 
              
Integrated Oil & Gas - 4.0%
                
Chevron Corporation
     29,900       2,963,987  
ConocoPhillips
     14,400       1,359,216  
Exxon Mobil Corporation
     45,700       4,027,541  
Sasol, Ltd. ADR
     35,900       2,115,946  
 
              
 
             10,466,690  
 
              
Integrated Telecommunication Services - 0.9%
                
Windstream Corporation
     192,200       2,371,748  
 
              
Internet Software & Services - 1.7%
                
Google, Inc. *
     8,440       4,442,985  
 
              
Life Sciences Tools & Services - 2.2%
                
Thermo Fisher Scientific, Inc. *
     100,140       5,580,802  
 
              
Movies & Entertainment - 2.6%
                
Time Warner, Inc.
     185,100       2,739,480  
Walt Disney Company
     132,530       4,134,936  
 
              
 
             6,874,416  
 
              
Multi-Line Insurance - 1.4%
                
American International Group, Inc.
     141,900       3,754,674  
 
              
Oil & Gas Drilling - 3.7%
                
Nabors Industries, Ltd. *
     91,385       4,498,884  
Transocean, Inc.
     33,500       5,105,065  
 
              
 
             9,603,949  
 
              
Oil & Gas Equipment & Services - 1.4%
                
Halliburton Company
     66,200       3,513,234  
 
              
Oil & Gas Storage & Transportation - 1.5%
                
Williams Companies, Inc.
     93,900       3,785,109  
 
              
Other Diversified Financial Services - 1.5%
                
JPMorgan Chase & Company
     116,500       3,997,115  
 
              
Pharmaceuticals - 1.2%
                
Schering-Plough Corporation
     160,500       3,160,245  
 
              
Property & Casualty Insurance - 2.3%
                
Berkshire Hathaway, Inc. *
     49       5,916,750  
 
              
Railroads - 4.2%
                
Burlington Northern Santa Fe Corporation
     56,630       5,656,771  
Union Pacific Corporation
     70,400       5,315,200  
 
              
 
             10,971,971  
 
              
Restaurants - 1.7%
                
McDonald’s Corporation
     76,280       4,288,462  
 
              
Semiconductor Equipment - 1.5%
                
MEMC Electronic Materials, Inc. *
     65,280       4,017,331  
 
              
Semiconductors - 1.5%
                
Microchip Technology, Inc.
     127,105       3,881,787  
 
              
Soft Drinks - 1.6%
                
PepsiCo, Inc.
     65,160       4,143,524  
 
              
Specialty Chemicals - 0.8%
                
Rohm & Haas Company
     43,600       2,024,784  
 
              
Systems Software - 2.1%
                
Oracle Corporation *
     258,230       5,422,830  
 
              
Thrifts & Mortgage Finance - 0.8%
                
Federal Home Loan Mortgage Corporation
     84,500       1,385,800  
Federal National Mortgage Association
     39,200       764,792  
 
              
 
             2,150,592  
 
              
Tobacco - 1.3%
                
Altria Group, Inc.
     47,700       980,712  
Philip Morris International, Inc.
     47,700       2,355,903  
 
              
 
             3,336,615  
 
TOTAL COMMON STOCK (Cost $263,121,002)
           $ 253,644,877  
 
                 
    Principal        
    Amount     Value  
U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES - 0.5%
                
Federal Home Loan Bank
1.92% - 2008
   $ 1,300,000       1,299,931  
 
TOTAL U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES
(Cost $1,299,931)
           $ 1,299,931  
 
REPURCHASE AGREEMENT - 1.5%
                
UMB Financial Corp, 1.89%, dated 6/30/08, matures 7/1/08; repurchase amount $3,889,230 (Collateralized by FNMA, 5.50%, 8/22/12 with a value of $3,966,806)
   $ 3,889,000     $ 3,889,000  
 
TOTAL REPURCHASE AGREEMENT (Cost $3,889,000)
           $ 3,889,000  
 
Total Investments (Security Equity Fund - Equity Series)
(Cost $268,309,933) - 100.0%
           $ 258,833,808  
Other Assets in Excess of Liabilities - 0.0%
             112,049  
 
              
TOTAL NET ASSETS - 100.0%
           $ 258,945,857  
 
              
Footnotes
Percentages are stated as a percent of net assets.
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Equity Series
June 30, 2008 (Unaudited) — continued    
For federal income tax purposes the identified cost of investments owned at 6/30/2008 was $268,309,933.
 
*  - 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.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Global Series
June 30, 2008 (Unaudited)    
                 
    Shares     Value  
COMMON STOCK - 101.0%
                
Austria - 0.5%
                
OMV AG (1)
     9,778     $ 764,067  
 
              
Bermuda - 2.5%
                
Endurance Specialty Holdings, Ltd.
     30,661       944,052  
Platinum Underwriters Holdings, Ltd.
     36,099       1,177,189  
Tyco Electronics, Ltd.
     44,372       1,589,405  
 
              
 
             3,710,646  
 
              
Brazil - 2.1%
                
Bovespa Holding S.A.
     248,800       3,075,056  
 
              
Canada - 0.4%
                
Research In Motion, Ltd. *
     5,594       653,939  
 
              
Cayman Islands - 3.1%
                
Herbalife, Ltd.
     25,417       984,909  
Shanda Interactive Entertainment, Ltd. ADR*
     57,620       1,564,383  
Suntech Power Holdings Company, Ltd. ADR *
     56,690       2,123,607  
 
              
 
             4,672,899  
 
              
China - 0.4%
                
Jiangxi Copper Company, Ltd. (1)
     340,200       670,136  
 
              
France - 1.7%
                
UBISOFT Entertainment * (1)
     29,306       2,563,235  
 
              
Germany - 1.3%
                
Fresenius Medical Care AG & Company KGaA (1)
     24,119       1,329,077  
MAN AG (1)
     5,284       585,998  
SAPAG
     630       32,978  
 
              
 
             1,948,053  
 
              
Hong Kong - 4.4%
                
LinkREIT(1)(2)
     2,865,200       6,528,499  
 
              
Ireland - 2.8%
                
Anglo Irish Bank Corporation plc (1)
     439,404       4,154,068  
 
              
Italy - 3.5%
                
Unione di Banche Italiane SCPA (1)
     225,665       5,273,567  
 
              
Japan - 10.0%
                
Astellas Pharma, Inc. (1)
     28,280       1,202,612  
Chiba Bank, Ltd. (1)
     177,600       1,247,062  
JGC Corporation (1)
     205,290       4,042,502  
Nintendo Company, Ltd. (1)
     10,338       5,862,406  
Nippon Express Company, Ltd. (1)
     253,760       1,218,710  
NTT DoCoMo, Inc. (1)
     847       1,242,329  
Shima Seiki Manufacturing, Ltd. (1)
     4,992       136,280  
 
              
 
             14,951,901  
 
              
Luxembourg - 0.4%
                
ArcelorMittal (1)
     5,260       521,108  
 
              
Norway - 0.6%
                
Yara International ASA (1)
     9,866       871,288  
 
              
Singapore - 6.2%
                
Singapore Airlines, Ltd. (1)
     223,560       2,419,556  
Singapore Press Holdings, Ltd. (1)
     2,205,948       6,897,101  
 
              
 
             9,316,657  
 
              
South Africa - 1.7%
                
Aveng, Ltd. (1)
     340,767       2,515,526  
 
              
Sweden - 0.3%
                
Scania AB (1)
     37,455       509,944  
 
              
Switzerland - 1.2%
                
Actelion, Ltd. * (1)
     18,739       999,457  
Lonza Group AG (1)
     6,214       858,637  
 
              
 
             1,858,094  
 
              
United Kingdom - 5.3%
                
AstraZeneca plc (1)
     22,399       952,367  
Cadbury plc(1)
     129,741       1,627,401  
Imperial Tobacco Group plc (1)
     89,810       3,334,530  
Old Mutual plc (1)
     340,849       626,381  
RioTinto plc ADR
     1,526       755,370  
Vedanta Resources plc (1)
     16,740       722,268  
 
              
 
             8,018,317  
 
              
United States - 52.6%
                
Altria Group, Inc.
     132,891       2,732,239  
Amgen, Inc. *
     18,941       893,258  
Anadarko Petroleum Corporation
     46,848       3,506,104  
AO Smith Corporation
     28,974       951,216  
AT&T, Inc.
     115,667       3,896,821  
Baxter International, Inc.
     21,453       1,371,705  
Biogen Idec, Inc. *
     20,672       1,155,358  
Brocade Communications Systems, Inc. *
     101,686       837,893  
CA, Inc.
     229,591       5,301,256  
CF Industries Holdings, Inc.
     5,747       878,142  
Charles River Laboratories International, Inc. *
     20,694       1,322,760  
ConocoPhillips
     14,948       1,410,942  
Consolidated Edison, Inc.
     32,010       1,251,271  
Constellation Energy Group, Inc.
     48,256       3,961,818  
Gap, Inc.
     61,435       1,024,121  
General Electric Company
     42,270       1,128,186  
Genworth Financial, Inc.
     60,100       1,070,381  
Gymboree Corporation *
     30,555       1,224,339  
IMS Health, Inc.
     37,510       873,983  
Invitrogen Corporation *
     29,040       1,140,110  
Johnson & Johnson
     87,176       5,608,904  
Joy Global, Inc.
     48,062       3,644,541  
Lockheed Martin Corporation
     54,384       5,365,525  
Marvel Entertainment, Inc. *
     83       2,668  
National City Corporation
     1,044,931       4,984,321  
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Global Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
COMMON STOCK (continued)
                
United States (continued)
                
NetFlix, Inc. *
     25,712     $ 670,312  
Northrop Grumman Corporation
     10,859       726,467  
Owens & Minor, Inc.
     17,750       810,998  
Philip Morris International, Inc.
     147,013       7,260,972  
Pinnacle West Capital Corporation
     39,710       1,221,877  
RadioShack Corporation
     73,290       899,268  
Reinsurance Group of America, Inc.
     23,312       1,014,538  
Safeway, Inc.
     40,740       1,163,127  
Symantec Corporation *
     60,917       1,178,744  
TJX Companies, Inc.
     39,357       1,238,565  
Trinity Industries, Inc.
     111,323       3,861,795  
Wal-Mart Stores, Inc.
     21,953       1,233,759  
Watson Wyatt Worldwide, Inc.
     22,325       1,180,769  
Weight Watchers International, Inc.
     26,874       956,983  
 
              
 
             78,956,036  
 
TOTAL COMMON STOCK (Cost $157, 797,715)
           $ 151,533,036  
 
Total Investments (Security Equity Fund - Global Series)
(Cost $157,797,715) - 101.0%
           $ 151,533,036  
Liabilities in Excess of Other Assets — (1.0)%
             (1.504.318 )
 
              
TOTAL NET ASSETS - 100.0%
           $ 150,028,718  
 
              
INVESTMENT CONCENTRATION
At June 30, 2008, the investment diversification of the fund was as follows:
                 
    % of        
Industry   Net Assets     Value  
Tobacco
     8.8 %   $ 13,327,741  
Home Entertainment Software
     6.6       9,990,024  
Diversified Banks
     6.3       9,427,635  
Construction & Farm Machinery & Heavy Trucks
     5.3       8,016,281  
Pharmaceuticals
     5.1       7,763,883  
Publishing
     4.6       6,897,101  
Construction & Engineering
     4.4       6,558,028  
Retail REIT’s
     4.4       6,528,499  
Systems Software
     4.3       6,480,000  
Regional Banks
     4.2       6,231,383  
Aerospace & Defense
     4.1       6,091,993  
Independent Power Producers & Energy Traders
     2.7       3,961,817  
Integrated Telecommunication Services
     2.6       3,896,821  
Oil & Gas Exploration & Production
     2.3       3,506,104  
Apparel Retail
     2.3       3,487,025  
Life Sciences Tools & Services
     2.3       3,321,507  
Reinsurance
     2.1       3,135,779  
Specialized Finance
     2.1       3,075,056  
Electrical Components & Equipment
     2.0       3,074,823  
Biotechnology
     2.0       3,048,073  
Airlines
     1.6       2,419,557  
Integrated Oil & Gas
     1.5       2,175,009  
Diversified Metals & Mining
     1.4       2,147,774  
Fertilizers & Agricultural Chemicals
     1.2       1,749,429  
Packaged Foods & Meats
     1.1       1,627,401  
Electronic Manufacturing Services
     1.1       1,589,405  
Communications Equipment
     1.0       1,491,831  
Health Care Equipment
     0.9       1,371,705  
Health Care Services
     0.9       1,329,077  
Multi-Utilities
     0.8       1,251,271  
Wireless Telecommunication Services
     0.8       1,242,329  
Hypermarkets & Super Centers
     0.8       1,233,759  
Electric Utilities
     0.8       1,221,877  
Trucking
     0.8       1,218,710  
Human Resource & Employment Services
     0.8       1,180,769  
Food Retail
     0.8       1,163,127  
Industrial Conglomerates
     0.7       1,128,186  
Multi-Line Insurance
     0.7       1,070,381  
Personal Products
     0.7       984,909  
Specialized Consumer Services
     0.6       956,983  
Computer & Electronics Retail
     0.6       899,268  
Health Care Technology
     0.6       873,983  
Health Care Distributors
     0.5       810,998  
Industrial Machinery
     0.5       722,278  
Internet Retail
     0.5       670,312  
Life & Health Insurance
     0.4       626,381  
Steel
     0.4       521,108  
Application Software
     0.0       32,978  
Movies & Entertainment
     0.0       2,668  
 
            
Total Investments
     101.0       151,533,036  
Other Assets and Liabilities, Net
     -1.0       (1,504,318 )
 
            
Net Assets
     100 %   $ 150,028,718  
 
            
Footnotes
Percentages are stated as a percent of net assets.

For federal income tax purposes the identified cost of investments owned at 6/30/2008 was $157,967,556.
 
*   -  Non-income producing security
 
1  -  Security was subject to the fair value trigger at June 30, 2008. The total market value of fair valued securities amounts to $59,676,113, (cost $62,233,365) or 39.8% of total net assets.
 
2  -  Security is a PFIC (Passive Foreign Investment Company)
 
Glossary:   
 
ADR   - American Depositary Receipt
 
pic   - Public Limited Company
 
REIT   - Real Estate Investment Trust
See notes to financial statements.
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Mid Cap Value Series
June 30, 2008 (Unaudited)    
                 
    Shares     Value  
COMMON STOCK - 98.2%
                
Aerospace & Defense - 0.5%
                
Argon ST, Inc. *
     153,800     $ 3,814,240  
 
              
Apparel Retail - 3.1%
                
Brown Shoe Company, Inc.
     542,900       7,356,295  
Collective Brands, Inc. *
     365,970       4,256,231  
Talbots, Inc.
     1,029,000       11,926,110  
 
              
 
             23,538,636  
 
              
Apparel, Accessories & Luxury Goods - 2.3%
                
Fossil, Inc. *
     125,300       3,642,471  
Maidenform Brands, Inc. *
     635,900       8,584,650  
Oxford Industries, Inc.
     277,600       5,316,040  
 
              
 
             17,543,161  
 
              
Application Software - 1.4%
                
EPIQ Systems, Inc. *
     579,250       8,225,350  
PLATO Learning, Inc. * (1)
     845,700       2,241,105  
 
              
 
             10,466,455  
 
              
Auto Parts & Equipment - 0.1%
                
HydroGen Corporation * (1)(2)
     1,260,000       441,000  
 
              
Biotechnology - 0.2%
                
Combinatorx, Inc. *
     356,230       1,264,617  
 
              
Building Products - 0.6%
                
Trex Company, Inc. *
     357,200       4,189,956  
 
              
Coal & Consumable Fuels - 3.0%
                
Consol Energy, Inc. (3)
     50,000       5,618,500  
Evergreen Energy, Inc. *
     3,660,000       6,368,400  
USEC, Inc. *
     1,667,100       10,135,968  
 
              
 
             22,122,868  
 
              
Communications Equipment - 1.1%
                
EF Johnson Technologies, Inc. *
     870,000       1,522,500  
Symmetricom, Inc. *
     1,722,070       6,612,749  
 
              
 
             8,135,249  
 
              
Computer Storage & Peripherals - 0.4%
                
STEC, Inc. *
     307,300       3,155,971  
 
              
Construction & Engineering - 3.5%
                
Insituform Technologies, Inc. *
     486,700       7,412,441  
Quanta Services, Inc. *
     427,100       14,209,617  
URS Corporation *
     102,000       4,280,940  
 
              
 
             25,902,998  
 
              
Consumer Finance- 0.8%
                
First Marblehead Corporation
     2,401,800       6,172,626  
 
              
Data Processing & Outsourced Services - 7.4%
                
Affiliated Computer Services, Inc. *
     495,000       26,477,550  
Computer Sciences Corporation *
     516,300       24,183,492  
Gevity HR, Inc.
     809,700       4,356,186  
 
              
 
             55,017,228  
 
              
Diversified Commercial & Professional Services - 3.0%
                
GeoEye, Inc. *
     133,090       2,357,024  
Navigant Consulting, Inc. *
     1,020,000       19,951,200  
 
              
 
             22,308,224  
 
              
Drug Retail - 1.5%
                
Longs Drug Stores Corporation
     258,400       10,881,224  
 
              
Electric Utilities - 6.5%
                
Allete, Inc. (3)
     323,800       13,599,600  
Empire District Electric Company
     185,000       3,429,900  
Great Plains Energy, Inc.
     756,400       19,121,792  
Northeast Utilities
     309,300       7,896,429  
Westar Energy, Inc.
     200,000       4,302,000  
 
              
 
             48,349,721  
 
              
Electrical Components & Equipment - 1.5%
                
Power-One, Inc. * (2)
     5,314,700       10,044,783  
UQM Technologies, Inc. *
     517,722       1,138,988  
 
              
 
             11,183,771  
 
              
Electronic Manufacturing Services - 2.0%
                
Maxwell Technologies, Inc. * (2)
     1,325,300       14,074,686  
Merix Corporation *
     389,500       895,850  
 
              
 
             14,970,536  
 
              
Exchange Traded Funds - 2.0%
                
iShares Russell 2000 Value Index Fund
     115,000       7,360,000  
iShares S&P MidCap 400
     101,000       7,476,020  
 
              
 
             14,836,020  
 
              
Forest Products - 0.9%
                
Louisiana-Pacific Corporation
     820,300       6,964,347  
 
              
Gas Utilities - 2.2%
                
Atmos Energy Corporation
     335,000       9,235,950  
Southern Union Company
     274,000       7,403,480  
 
              
 
             16,639,430  
 
              
Health Care Equipment - 0.4%
                
Aspect Medical Systems, Inc. *
     443,900       2,792,131  
 
              
Health Care Facilities - 1.4%
                
Community Health Systems, Inc. *
     309,900       10,220,502  
 
              
Health Care Services - 2.0%
                
Pediatrix Medical Group, Inc. *
     213,100       10,490,913  
RehabCare Group, Inc. *
     258,900       4,150,167  
 
              
 
             14,641,080  
 
              
Highways & Railtracks - 0.5%
                
Quixote Corporation (2)
     479,100       3,942,993  
 
              
Home Furnishings - 1.9%
                
Leggett & Platt, Inc.
     827,400       13,875,498  
 
              
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Mid Cap Value Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
COMMON STOCK (continued)
                
Household Appliances - 0.3%
                
Whirlpool Corporation
     41,000     $ 2,530,930  
 
              
Human Resource & Employment Services - 0.9%
                
Administaff, Inc.
     232,000       6,470,480  
 
              
Industrial Machinery - 1.2%
                
Briggs & Stratton Corporation
     568,700       7,211,116  
Thermoenergy Corporation * (1)
     1,745,000       2,163,800  
 
              
 
             9,374,916  
 
              
Mortgage REIT’s - 0.0%
                
Bimini Capital Management, Inc. * (1)(2)
     1,474,400       368,600  
 
              
Multi — Line Insurance - 1.6%
                
American Financial Group, Inc. (3)
     443,750       11,870,313  
 
              
Multi-Utilities - 3.5%
                
NorthWestern Corporation
     359,700       9,143,574  
SCANA Corporation
     400,000       14,800,000  
TECO Energy, Inc. (3)
     115,700       2,486,393  
 
              
 
             26,429,967  
 
              
Oil & Gas Drilling - 2.7%
                
Helmerich & Payne, Inc. (3)
     282,700       20,360,054  
 
              
Oil & Gas Equipment & Services - 1.2%
                
Global Industries, Ltd. *
     490,200       8,789,286  
 
              
Oil & Gas Exploration & Production - 2.5%
                
Edge Petroleum Corporation *
     89,700       483,483  
Gulfport Energy Corporation *
     395,900       6,520,473  
Newfield Exploration Company * (3)
     179,900       11,738,475  
 
              
 
             18,742,431  
 
              
Oil & Gas Refining & Marketing - 0.2%
                
Nova Biosource Fuels, Inc. *
     2,071,100       1,387,637  
 
              
Packaged Foods & Meats - 6.9%
                
Hormel Foods Corporation (3)
     545,300       18,872,833  
JM Smucker Company
     345,000       14,020,800  
Smithfield Foods, Inc. *
     740,900       14,729,092  
TreeHouse Foods, Inc. *
     169,700       4,116,922  
 
              
 
             51,739,647  
 
              
Paper Packaging - 3.6%
                
Bemis Company, Inc.
     620,000       13,900,400  
Sonoco Products Company
     417,500       12,921,625  
 
              
 
             26,822,025  
 
              
Paper Products - 0.7%
                
Schweitzer-Mauduit International, Inc.
     333,200       5,614,420  
 
              
Property & Casualty Insurance - 6.0%
                
Alleghany Corporation *
     30,785       10,222,159  
Assured Guaranty, Ltd.
     342,800       6,166,972  
Employers Holdings, Inc.
     271,100       5,611,770  
Hanover Insurance Group, Inc.
     212,000       9,010,000  
MBIA, Inc.
     1,127,200       4,948,408  
United America Indemnity, Ltd. *
     154,500       2,065,665  
W.R. Berkley Corporation
     282,500       6,825,200  
 
              
 
             44,850,174  
 
              
Publishing - 0.3%
                
Valassis Communications, Inc. *
     193,450       2,421,994  
 
              
Railroads - 0.2%
                
Kansas City Southern *
     42,300       1,860,777  
 
              
Regional Banks - 6.9%
                
Commerce Bancshares, Inc.
     357,000       14,158,620  
Hancock Holding Company
     241,800       9,500,322  
Old National Bancorp
     215,850       3,078,021  
Whitney Holding Corporation
     457,600       8,374,080  
Wilmington Trust Corporation
     625,500       16,538,220  
 
              
 
             51,649,263  
 
              
Restaurants - 0.5%
                
Red Robin Gourmet Burgers, Inc. *
     137,100       3,803,154  
 
              
Semiconductor Equipment - 1.0%
                
Ultratech, Inc. *
     476,200       7,390,624  
 
              
Semiconductors - 3.7%
                
IXYS Corporation * (2)
     2,334,700       27,876,318  
 
              
Specialized Consumer Services - 0.5%
                
Regis Corporation
     154,000       4,057,900  
 
              
Thrifts & Mortgage Finance - 2.6%
                
Clayton Holdings, Inc. * (2)
     1,490,200       8,896,494  
MGIC Investment Corporation
     1,686,100       10,302,071  
 
              
 
             19,198,565  
 
              
Trucking - 1.0%
                
Old Dominion Freight Line, Inc. *
     131,500       3,947,630  
Saia, Inc. *
     331,700       3,622,164  
 
              
 
             7,569,794  
 
TOTAL COMMON STOCK (Cost $858,578,203)
           $ 734,549,751  
 
WARRANTS - 0.1%
                
Warrants - 0.1%
                
Lime Energy Company
$1.00, 3/19/2009
     4,217       8,846  
Nova Biosource Fuels, Inc.
$2.40, 7/5/2011
     677,450       208,132  
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Mid Cap Value Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
WARRANTS (continued)
                
Warrants (continued)
                
ThermoEnergy Corporation
                
$0.75, 7/14/2008 (1)
     1,745,000     $ 192,811  
 
              
 
             409,789  
 
TOTAL WARRANTS (Cost $1,561,837)
           $ 409,789  
 
                 
    Principal        
    Amount     Value  
CONVERTIBLE BOND - 1.2%
                
Electric Utilities - 0.4%
                
Power-One, Inc.
                
8.00%, 2013 (4)(5)
   $ 4,000,000       3,290,120  
 
              
Petroleum - 0.8%
                
USEC, Inc.
                
3.00%, 2014
     7,600,000       5,681,000  
 
TOTAL CONVERTIBLE BOND (Cost $11,600,000)
           $ 8,971,120  
 
U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES - 0.3%
                
Federal Home Loan Bank
                
1.92% - 2008
     2,000,000       1,999,893  
 
TOTAL U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES
           $ 1,999,893  
(Cost $1,999,893)
                
 
COMMERCIAL PAPER - 1.7%
                
Brokerage - 0.5%
                
JP Morgan Chase & Company
                
1.90%, 7/2/2008
     4,000,000       3,999,789  
 
              
Food & Beverage - 0.7%
                
Nestle Capital Corporation
                
2.09%, 7/7/2008 (5)
     4,300,000       4,298,502  
2.16%, 7/8/2008 (5)
     1,000,000       999,580  
 
              
 
             5,298,082  
 
              
Non U.S. Banking - 0.5%
                
Danske Corporation
                
2.45%, 7/1/2008 (5)
     2,600,000       2,600,000  
2.60%, 7/7/2008 (5)
     1,200,000       1,199,480  
 
              
 
             3,799,480  
 
TOTAL COMMERCIAL PAPER (Cost $13,097,351)
           $ 13,097,351  
 
Total Investments (Security Equity Fund — Mid Cap Value Series)
           $ 759,027,904  
(Cost $886,837,284) - 101.5%
                
Liabilities in Excess of Other Assets — (1.5)%
             (11,181,267 )
 
              
TOTAL NET ASSETS - 100.0%
           $ 747,846,637  
 
              
Footnotes
Percentages are stated as a percent of net assets.
For federal income tax purposes the identified cost of investments owned at 6/30/2008 was $886,837,284.
 
*   - Non-income producing security
 
1  
- Security is deemed illiquid. The total market value of illiquid securities is $5,407,315 (cost $29,611,497), or 0.7% of total net assets.
 
2   - Investment in an affiliated issuer. See Note 4 in notes to financial statements.
 
3   - Security is segregated as collateral for open written option contracts.
 
4   - Security was acquired through a private placement.
 
5  
- Security is a 144A or Section 4(2) security. The total market value of 144A or Section 4(2) securities is $12,387,682 (cost $13,097,562), or 1.7% of total net assets.
See notes to financial statements.
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Select 25 Series
June 30, 2008 (Unaudited)    
                 
    Shares     Value  
COMMON STOCK - 97.8%
                
Advertising - 2.0%
                
Omnicom Group, Inc.
     20,685     $ 928,343  
 
              
Aerospace & Defense - 3.9%
                
Honeywell International, Inc.
     35,590       1,789,465  
 
              
Asset Management & Custody Banks - 2.9%
                
Bank of New York Mellon Corporation
     35,405       1,339,371  
 
              
Biotechnology - 8.8%
                
Celgene Corporation *
     33,290       2,126,233  
Gilead Sciences, Inc. *
     37,335       1,976,888  
 
              
 
             4,103,121  
 
              
Communications Equipment - 6.7%
                
Cisco Systems, Inc. *
     57,800       1,344,428  
Corning, Inc.
     77,500       1,786,375  
 
              
 
             3,130,803  
 
              
Computer Hardware - 7.2%
                
Apple, Inc. *
     11,390       1,907,141  
Hewlett-Packard Company
     32,080       1,418,257  
 
              
 
             3,325,398  
 
              
Construction & Farm Machinery & Heavy Trucks - 3.8%
                
Deere & Company
     24,775       1,787,021  
 
              
Diversified Banks - 2.6%
                
Wells Fargo & Company
     50,845       1,207,569  
 
              
Drug Retail - 4.2%
                
CVS Caremark Corporation
     49,320       1,951,592  
 
              
Electrical Components & Equipment - 3.7%
                
Emerson Electric Company
     34,735       1,717,646  
 
              
Fertilizers & Agricultural Chemicals - 5.6%
                
Monsanto Company
     8,720       1,102,557  
Mosaic Company
     10,235       1,481,004  
 
              
 
             2,583,561  
 
              
Footwear - 2.8%
                
Nike, Inc. (Cl.B)
     22,040       1,313,804  
 
              
Industrial Conglomerates - 3.0%
                
Textron, Inc.
     28,565       1,369,121  
 
              
Industrial Gases - 3.1%
                
Air Products & Chemicals, Inc.
     14,460       1,429,516  
 
              
Internet Software & Services - 3.4%
                
Google, Inc. *
     3,010       1,584,524  
 
              
Life Sciences Tools & Services - 4.1%
                
Thermo Fisher Scientific, Inc. *
     33,935       1,891,198  
 
              
Movies & Entertainment - 3.0%
                
Walt Disney Company
     45,320       1,413,984  
 
              
Oil & Gas Drilling - 6.8%
                
Nabors Industries, Ltd. *
     31,320       1,541,883  
Transocean, Inc.
     10,540       1,606,191  
 
              
 
             3,148,074  
 
              
Railroads - 4.2%
                
Burlington Northern Santa Fe Corporation
     19,360       1,933,870  
 
              
Restaurants - 3.0%
                
McDonald’s Corporation
     25,060       1,408,873  
 
              
Semiconductor Equipment - 3.0%
                
MEMC Electronic Materials, Inc. *
     22,980       1,414,189  
 
              
Semiconductors - 2.8%
                
Microchip Technology, Inc.
     43,005       1,313,373  
 
              
Soft Drinks - 3.0%
                
PepsiCo, Inc.
     22,240       1,414,242  
 
              
Systems Software - 4.2%
                
Oracle Corporation *
     93,445       1,962,345  
 
TOTAL COMMON STOCK (Cost $45,016,506)
           $ 45,461,003  
 
                 
    Principal        
    Amount     Value  
REPURCHASE AGREEMENT - 2.3%
                
UMB Financial Corp, 1.89%, dated 6/30/08, matures 7/1/08; repurchase amount $1,075,064 (Collateralized by U.S. Treasury Note, 3.25%, 1/15/09 with a value of $1,096,556)
   $ 1,075,000     $ 1,075,000  
 
TOTAL REPURCHASE AGREEMENT (Cost $1,075,000)
           $ 1,075,000  
 
Total Investments (Security Equity Fund - Select 25 Series)
           $ 46,536,003  
(Cost $46,091,506) - 100.1%
                
Liabilities in Excess of Other Assets - (0.1)%
             (57,695 )
 
              
TOTAL NET ASSETS - 100.0%
           $ 46,478,308  
 
              
Footnotes
Percentages are stated as a percent of net assets.
For federal income tax purposes the identified cost of investments owned at 6/30/2008 was $46,186,031.
 
*  - Non-income producing security
See notes to financial statements.
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Small Cap Growth Series
June 30, 2008 (Unaudited)    
                 
    Shares     Value  
COMMON STOCK - 90.1%
                
Aerospace & Defense - 3.5%
                
BE Aerospace, Inc. *
     8,950     $ 208,445  
Heico Corporation
     7,490       243,725  
Hexcel Corporation *
     16,230       313,239  
 
              
 
             765,409  
 
              
Alternative Carriers - 1.9%
                
Premiere Global Services, Inc. *
     28,390       413,926  
 
              
Apparel Retail - 2.3%
                
Aeropostale, Inc. *
     7,820       245,001  
Jos A. Bank Clothiers, Inc. *
     9,896       264,718  
 
              
 
             509,719  
 
              
Apparel, Accessories & Luxury Goods - 1.5%
                
FGX International Holdings, Ltd. *
     29,950       240,798  
True Religion Apparel, Inc. *
     3,330       88,744  
 
              
 
             329,542  
 
              
Application Software - 3.2%
                
Advent Software, Inc. *
     8,450       304,876  
Nuance Communications, Inc. *
     10,190       159,677  
PROS Holdings, Inc. *
     21,440       240,771  
 
              
 
             705,324  
 
              
Biotechnology - 3.1%
                
OSI Pharmaceuticals, Inc. *
     6,390       264,035  
Savient Pharmaceuticals, Inc. *
     8,010       202,653  
United Therapeutics Corporation *
     2,220       217,005  
 
              
 
             683,693  
 
              
Casinos & Gaming - 1.9%
                
Scientific Games Corporation *
     14,040       415,865  
 
              
Commercial Printing - 1.7%
                
Innerworkings, Inc. *
     30,620       366,215  
 
              
Communications Equipment - 2.3%
                
Comtech Telecommunications Corporation *
     4,560       223,440  
DG FastChannel, Inc. *
     16,270       280,658  
 
              
 
             504,098  
 
              
Computer Storage & Peripherals - 0.7%
                
Data Domain, Inc. *
     6,600       153,978  
 
              
Consumer Finance - 1.0%
                
Cardtronics, Inc. *
     26,060       231,152  
 
              
Data Processing & Outsourced Services - 4.0%
                
Cybersource Corporation *
     11,120       186,038  
TeleTech Holdings, Inc. *
     17,240       344,110  
TNS, Inc. *
     14,430       345,743  
 
              
 
             875,891  
 
              
Education Services - 1.2%
                
DeVry, Inc.
     5,070       271,853  
 
              
Electrical Components & Equipment - 1.8%
                
EnerSys *
     5,195       177,825  
GrafTech International, Ltd. *
     7,890       211,689  
 
              
 
             389,514  
 
              
Environmental & Facilities Services - 1.6%
                
Rollins, Inc.
     16,255       240,899  
Team, Inc. *
     3,590       123,209  
 
              
 
             364,108  
 
              
Fertilizers & Agricultural Chemicals - 1.2%
                
Terra Industries, Inc.
     5,570       274,880  
 
              
Health Care Equipment - 8.3%
                
LeMaitre Vascular, Inc. *
     70,050       204,546  
Natus Medical, Inc. *
     17,646       369,507  
NuVasive, Inc. *
     6,580       293,863  
Spectranetics Corporation *
     47,597       469,306  
Vnus Medical Technologies, Inc. *
     14,650       293,147  
Zoll Medical Corporation *
     6,140       206,734  
 
              
 
             1,837,103  
 
              
Health Care Facilities - 2.9%
                
NovaMed, Inc. *
     40,560       152,911  
Psychiatric Solutions, Inc. *
     12,850       486,244  
 
              
 
             639,155  
 
              
Health Care Services - 2.2%
                
Amedisys, Inc. *
     4,470       225,377  
IPC The Hospitalist Company, Inc. *
     14,157       266,435  
 
              
 
             491,812  
 
              
Health Care Supplies - 1.0%
                
RTI Biologics, Inc. *
     26,130       228,637  
 
              
Health Care Technology - 1.8%
                
Trizetto Group *
     19,120       408,786  
 
              
Industrial Machinery - 2.2%
                
Dynamic Materials Corporation
     4,010       132,129  
Flow International Corporation *
     31,870       248,586  
Valmont Industries, Inc.
     920       95,947  
 
              
 
             476,662  
 
              
Insurance Brokers - 1.1%
                
eHealth, Inc. *
     14,240       251,478  
 
              
Internet Software & Services - 9.3%
                
Digital River, Inc. *
     6,450       248,841  
Equinix, Inc. *
     2,585       230,634  
Internet Brands, Inc. *
     50,018       331,619  
j2 Global Communications, Inc. *
     13,620       313,260  
NaviSite, Inc. *
     68,360       259,768  
NIC, Inc.
     20,580       140,561  
TheStreet.com, Inc.
     3,730       24,282  
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

Schedule of Investments   Security Equity Fund — Small Cap Growth Series
June 30, 2008 (Unaudited) — continued    
                 
    Shares     Value  
COMMON STOCK (continued)
                
Internet Software & Services (continued)
                
Valueclick, Inc. *
     14,570     $ 220,736  
Website Pros, Inc. *
     33,430       278,472  
 
              
 
             2,048,173  
 
              
Investment Banking & Brokerage - 2.1%
                
FCStone Group, Inc. *
     5,310       148,308  
Investment Technology Group, Inc. *
     9,620       321,885  
 
              
 
             470,193  
 
              
Leisure Facilities - 0.6%
                
Life Time Fitness, Inc. *
     4,570       135,044  
 
              
Leisure Products - 1.1%
                
Leapfrog Enterprises, Inc. *
     29,020       241,446  
 
              
Life Sciences Tools & Services - 0.7%
                
Luminex Corporation *
     7,590       155,975  
 
              
Marine - 1.1%
                
Genco Shipping & Trading, Ltd.
     3,720       242,544  
 
              
Marine Ports & Services - 1.3%
                
Aegean Marine Petroleum Network, Inc.
     6,815       277,302  
 
              
Oil & Gas Drilling - 1.2%
                
Atwood Oceanics, Inc. *
     2,150       267,331  
 
              
Oil & Gas Equipment & Services - 7.0%
                
Core Laboratories N.V. *
     1,780       253,383  
Dril-Quip, Inc. *
     5,420       341,460  
Oil States International, Inc. *
     5,930       376,199  
Superior Energy Services, Inc. *
     6,120       337,457  
Tesco Corporation *
     7,380       235,791  
 
              
 
             1,544,290  
 
              
Oil & Gas Exploration & Production - 2.6%
                
Arena Resources, Inc. *
     7,220       381,361  
Carrizo Oil & Gas, Inc. *
     2,780       189,290  
 
              
 
             570,651  
 
              
Personal Products - 1.3%
                
Bare Escentuals, Inc. *
     15,210       284,883  
 
              
Pharmaceuticals - 1.8%
                
Sciele Pharma, Inc.
     20,920       404,802  
 
              
Property & Casualty Insurance - 1.8%
                
Amtrust Financial Services, Inc.
     30,940       389,844  
 
              
Publishing - 0.6%
                
Dolan Media Company *
     7,570       137,774  
 
              
Semiconductors - 1.8%
                
Anadigics, Inc. *
     18,850       185,672  
Microsemi Corporation *
     8,720       219,570  
 
              
 
             405,242  
 
              
Specialty Chemicals - 0.7%
                
Rockwood Holdings, Inc. *
     4,250       147,900  
 
              
Trucking - 1.4%
                
Old Dominion Freight Line, Inc. *
     10,430       313,109  
 
              
Wireless Telecommunication Services - 1.3%
                
Syniverse Holdings, Inc. *
     18,430       298,566  
 
TOTAL COMMON STOCK (Cost $18,672,216)
           $ 19,923,869  
 
                 
    Principal        
    Amount     Value  
REPURCHASE AGREEMENT - 9.5%
                
UMB Financial Corp, 1.89%, dated 6/30/08, matures 7/1/08; repurchase amount $2,108,126 (Collateralized by U.S. Treasury Note, 4.875%, 5/31/09 with a value of $2,150,260)
   $ 2,108,000     $ 2,108,000  
 
TOTAL REPURCHASE AGREEMENT (Cost $2,108,000)
           $ 2,108,000  
 
Total Investments (Security Equity Fund — Small Cap Growth Series)
           $ 22,031,869  
(Cost $20,780,216) - 99.6%
                
Other Assets in Excess of Liabilities - 0.4%
             90,411  
 
              
TOTAL NET ASSETS - 100.0%
           $ 22,122,280  
 
              
Footnotes
Percentages are stated as a percent of net assets.
For federal income tax purposes the identified cost of investments owned at 6/30/2008 was $21,019,542.
 
*  - Non-income producing security
See notes to financial statements.
The accompanying notes are an integral part of the financial statements.

 

Table of Contents

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, 2008 were as follows:
                         
    Gross   Gross   Net unrealized
    unrealized   unrealized   appreciation
    appreciation   (depreciation)   (depreciation)
 
Security Equity Fund:
                        
Alpha Opportunity Series
   $ 61,068     $ (749,433 )   $ (688,365 )
Equity Series
     26,762,150       (36,238,275 )     (9,476,125 )
Global Series
     6,397,540       (12,832,060 )     (6,434,520 )
Mid Cap Value Series
     68,211,468       (196,020,848 )     (127,809,380 )
Select 25 Series
     2,972,645       (2,622,673 )     349,972  
Small Cap Growth Series
     2,771,957       (1,759,630 )     1,012,327  
2. Open Futures Contracts
     Open futures contracts for Alpha Opportunity Series as of June 30, 2008 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     70       09-19-2008       23,580,899     $ 22,419,250     $ (1,161,649 )
3. Options Written
The following options written were outstanding for Mid Cap Value Series at June 30, 2008:
Mid Cap Value Series Call Options Written Outstanding
                                 
    Expiration   Exercise   Number of   Market
Common Stock   Date   Price   Contracts   Value
 
Allete, Inc.
     7/18/2008     $ 45.00       651     $ 13,020  
Consol Energy, Inc.
     7/18/2008       80.00       500       1,610,000  
Helmerich & Payne, Inc.
     9/19/2008       55.00       715       1,287,000  
Newfield Exploration Company
     9/19/2008       65.00       600       366,000  
TECO Energy, Inc.
     8/15/2008       20.00       1,157       208,260  
                     
Total call options outstanding (premiums received, $1,287,250)
                     3,623     $ 3,484,280  
                       
Mid Cap Value Series Put Options Written Outstanding
                                 
    Expiration   Exercise   Number of   Market
Common Stock   Date   Price   Contracts   Value
 
Brown Shoe Company
     7/18/2008     $ 15.00       1,173     $ 164,220  
                     
Total call options outstanding (premiums received, $150,483)
                     1,173     $ 164,220  
                       

 

Table of Contents

NOTES TO FINANCIAL STATEMENTS (continued)
4. 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, 2008 amounted to $65,644,874 which represents 8.8% 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, 2008 in which the portfolio company is an “affiliated person” are as follows:
                                                 
    Balance   Gross   Gross   Balance   Realized   Investment
    9/30/2007   Additions   Reductions   6/30/2008   Gain/(Loss)   Income
 
Bimini Capital Management, Inc. (Shares)
     1,474,400       —       —       1,474,400       —       —  
Bimini Capital Management, Inc. (Cost)
   $ 16,310,457     $ —     $ —     $ 16,310,457     $ —     $ —  
 
                                                
Clayton Holdings, Inc. (Shares)
     569,100       921,100       —       1,490,200       —       —  
Clayton Holdings, Inc. (Cost)
   $ 5,267,192     $ 4,809,921     $ —     $ 10,077,113     $ —     $ —  
 
                                                
Hydrogen Corporation (Shares)
     840,300       419,700       —       1,260,000       —       —  
Hydrogen Corporation (Cost)
   $ 4,054,365     $ 1,170,962     $ —     $ 5,225,327     $ —     $ —  
 
                                                
IXYS Corporation (Shares)
     1,335,400       999,300       —       2,334,700       —       —  
IXYS Corporation (Cost)
   $ 11,770,248     $ 7,879,373     $ —     $ 19,649,621     $ —     $ —  
 
                                                
Maxwell Technologies, Inc. (Shares)
     789,400       535,900       —       1,325,300       —       —  
Maxwell Technologies, Inc. (Cost)
   $ 10,502,509     $ 4,104,994     $ —     $ 14,607,503     $ —     $ —  
 
                                                
Power-One, Inc. Corporation (Shares)
     2,648,800       2,665,900       —       5,314,700       —       —  
Power-One, Inc. Corporation (Cost)
   $ 16,493,326     $ 9,601,571     $ —     $ 26,094,897     $ —     $ —  
 
                                                
Quixote Corporation (Shares)
     479,100       —       —       479,100       —       —  
Quixote Corporation (Cost)
   $ 9,318,028     $ —     $ —     $ 9,318,028     $ —     $ —  
 
*   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.
5. 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.

 

Table of Contents

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.

 

Table of Contents

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/ Richard M. Goldman
 
     
 
      Richard M. Goldman, President    
 
            
    Date: August 28, 2008    
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/ Richard M. Goldman
 
    
 
      Richard M. Goldman, President    
 
            
    Date: August 28, 2008    
 
            
 
  By:   /s/ Brenda M. Harwood
 
    
 
      Brenda M. Harwood, Treasurer    
 
            
    Date: August 28, 2008