N-CSRS 1 ncsrs.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811- 07584 ------------- Rydex Series Funds -------------------------------- (Exact name of registrant as specified in charter) 9601 Blackwell Road, Suite 500 Rockville, Maryland 20850 -------------------------------- (Address of principal executive offices) (Zip code) Carl G. Verboncoeur Rydex Series Funds 9601 Blackwell Road, Suite 500 Rockville, Maryland 20850 (Name and address of agent for service) Registrant's telephone number, including area code: 1-301-296-5100 -------------- Date of fiscal year end: March 31, 2004 -------------- Date of reporting period: September 30, 2003 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. THE RYDEX SERIES FUNDS -------------------------------------------------------------------------------- BENCHMARK FUNDS SEMI-ANNUAL REPORT SEPTEMBER 30, 2003 NOVA FUND URSA FUND OTC FUND ARKTOS FUND MEDIUS FUND MEKROS FUND U.S.GOVERNMENT BOND FUND JUNO FUND LARGE-CAP EUROPE FUND LARGE-CAP JAPAN FUND U.S.GOVERNMENT MONEY MARKET FUND NOVA MASTER PORTFOLIO URSA MASTER PORTFOLIO ARKTOS MASTER PORTFOLIO JUNO MASTER PORTFOLIO [LOGO OMITTED] Rydex Investments Essential for modern markets[TM] RBFSA-3-11/03 This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not intended for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Distributed by Rydex Distributors, Inc. SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS ........................................ 2 BENCHMARK FUNDS SCHEDULES OF INVESTMENTS .................................... 4 STATEMENTS OF ASSETS AND LIABILITIES ........................ 36 STATEMENTS OF OPERATIONS .................................... 40 STATEMENTS OF CHANGES IN NET ASSETS ......................... 44 FINANCIAL HIGHLIGHTS ........................................ 50 BENCHMARK PORTFOLIOS SCHEDULES OF INVESTMENTS .................................... 91 STATEMENTS OF ASSETS AND LIABILITIES ........................ 106 STATEMENTS OF OPERATIONS .................................... 108 STATEMENTS OF CHANGES IN NET ASSETS ......................... 110 FINANCIAL HIGHLIGHTS ........................................ 112 NOTES TO FINANCIAL STATEMENTS ..................................... 116 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER: The period April 1 through September 30, 2003 can be characterized by remarkable resilience in the financial markets and cautious optimism on the economy. Having started the period in a time of high geopolitical uncertainty and weak economic activity, the markets returned double-digit gains across the board. Most notable in the rally was the solid outperformance of the technology sector and small-capitalization stocks. For the period, small-cap stocks, as measured by the Russell 2000[R], outperformed the predominantly large-cap S&P 500[R] by an incredible 16.17%, returning 34.62% and 18.45%, respectively. Similarly, the tech-heavy Nasdaq 100[R] returned 27.98%, beating the S&P 500 by 9.53%. The mutual fund industry was rocked by revelations of trading abuses by corporate executives and fund managers, as well as disclosure of special deals for top customers. The charges and allegations as presented by New York Attorney General, Eliot Spitzer, represent a serious breach of fiduciary duty and are almost certain to bring regulatory changes to the industry. The term "market-timing" has, unfortunately, taken the connotation of illicit investor behavior. However, we believe that funds designed to accommodate active trading can be an important tool in a tactical asset allocation strategy provided trading activity is monitored and the rules to protect current shareholders are strictly enforced. Investor optimism and positive news regarding cancer-fighting drugs helped spur the biotechnology sector as Rydex Biotechnology Fund rose 36.36% for the period. Technology, electronics and internet stocks all outpaced the broader market. Tax credits and home mortgage refinancing increased consumer discretionary income boosting Rydex Retailing Fund by 28.25%. (Biotechnology Fund and Retailing Fund are part of the Rydex Sector Funds and are reported on separately.) In the strong, upward trending market of the last two quarters, Rydex inverse funds performed as expected, generating corresponding losses to their respective benchmarks. Rydex Ursa Fund was down 16.23%, corresponding to an 18.45% increase in the S&P 500. Similarly, Rydex Arktos Fund fell 23.76% while the Nasdaq 100 increased 27.98%. On the fixed-income side, uneven reports of a stronger economy, positive and negative unemployment data and increasing bond issuance led to volatility in the Treasury market throughout the period. On June 16, when the Long Bond yield hit a low of 4.17%, more positive economic data and improving investor sentiment initiated an upward trend in rates that topped out on August 15 at 5.45%. Further uncertainty surrounding the labor market pushed yields lower. Despite the fixed-income market's lack of direction, the Long Bond yielded 4.88% on September 30, 2003, closely matching the 4.82% yield recorded on March 31, 2003. SEMI-ANNUAL REPORT 3 -------------------------------------------------------------------------------- The outlook for higher interest rates and the speculation of a "bond bubble" has led to increased inflows to Rydex Juno Fund. Juno's assets reached $674.3 million at the end of the third quarter up from $189.9 million at March 31, 2003. This inverse bond fund is an option for investors to speculate on rising interest rates or to protect fixed-income holdings in a rising interest rate environment. Staging a surprising comeback were the stocks of European and Japanese companies, which have been conspicuously underperforming in recent years. Rydex Large-Cap Europe Fund rose 29.76% reflecting improving fundamentals and a strong Euro versus the U.S. dollar. Rydex Large-Cap Japan rose an astounding 43.10% for the period reflecting improvements in Japanese domestic growth and growing global investor confidence. Times such as these can be challenging for investors. At Rydex Investments, we acknowledge and appreciate the trust you have placed in our firm's quality and integrity by investing with us. Sincerely, /S/Carl G. Verboncoeur Carl G. Verboncoeur Chief Executive Officer Rydex Investments 4 OTC FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- COMMON STOCKS 98.5% INFORMATION TECHNOLOGY 59.2% SOFTWARE 21.2% Microsoft Corp.+ ............... 3,056,800 $ 84,948,472 Oracle Corp.* .................. 1,516,500 17,015,130 Intuit, Inc.*+ ................. 306,603 14,790,529 Veritas Software Corp.*+ ...................... 329,600 10,349,440 PeopleSoft, Inc.*+ ............. 422,200 7,679,818 Check Point Software Technologies Ltd.*+ .......... 446,300 7,497,840 Electronic Arts, Inc.*+ ........ 72,400 6,677,452 Adobe Systems, Inc. ............ 169,000 6,634,940 Synopsys, Inc.*+ ............... 214,600 6,603,242 Symantec Corp.*+ ............... 75,900 4,783,218 BEA Systems, Inc.*+ ............ 360,800 4,347,640 Citrix Systems, Inc.* .......... 195,300 4,312,224 Mercury Interactive Corp.*+ ...................... 66,800 3,033,388 Siebel Systems, Inc.* ........................ 153,600 1,492,992 ----------------- TOTAL SOFTWARE 180,166,325 ----------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS 16.9% Intel Corp. .................... 2,015,100 55,435,401 Maxim Integrated Products, Inc.+ .............. 412,900 16,309,550 Linear Technology Corp.+ ....................... 384,400 13,765,364 Xilinx, Inc.*+ ................. 439,100 12,518,741 Applied Materials, Inc.*+ ....................... 629,700 11,422,758 Altera Corp.* .................. 599,800 11,336,220 KLA-Tencor Corp.*+ ............. 216,300 11,117,820 Microchip Technology, Inc.+ ........................ 292,700 7,007,238 Novellus Systems, Inc.*+ ....................... 85,500 2,885,625 NVIDIA Corp.*+ ................. 128,500 2,044,563 ----------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TOTAL SEMICONDUCTOR EQUIPMENT & PRODUCTS $143,843,280 ----------------- COMMUNICATIONS EQUIPMENT 11.5% Cisco Systems, Inc.*+ ....................... 2,054,800 40,150,792 QUALCOMM, Inc.+ ................ 884,500 36,830,580 Tellabs, Inc.* ................. 856,800 5,817,672 Juniper Networks, Inc.*+ ....................... 306,100 4,567,012 QLogic Corp.*+ ................. 87,600 4,118,076 Comverse Technology, Inc.*+ ....................... 211,400 3,162,544 CIENA Corp.*+ .................. 260,400 1,538,964 Telefonaktiebolaget LM Ericsson-- SP ADR*+ ..................... 61,600 904,288 JDS Uniphase Corp.* ............ 65,000 234,000 ----------------- TOTAL COMMUNICATIONS EQUIPMENT 97,323,928 ----------------- COMPUTERS & PERIPHERALS 5.5% Dell, Inc.* .................... 906,300 30,261,357 Apple Computer, Inc.*+ ....................... 353,700 7,296,831 Network Appliance, Inc.*+ ....................... 267,200 5,485,616 Sun Microsystems, Inc.* ........................ 1,059,800 3,507,938 ----------------- TOTAL COMPUTERS & PERIPHERALS 46,551,742 ----------------- INTERNET SOFTWARE & SERVICES 1.4% Yahoo!, Inc.*+ ................. 239,800 8,484,124 VeriSign, Inc.*+ ............... 258,000 3,475,260 ----------------- TOTAL INTERNET SOFTWARE & SERVICES 11,959,384 ----------------- IT CONSULTING & SERVICES 1.4% Paychex, Inc.+ ................. 173,000 5,869,890 Fiserv, Inc.*+ ................. 156,400 5,666,372 ----------------- TOTAL IT CONSULTING & SERVICES 11,536,262 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. SEMI-ANNUAL REPORT 5 OTC FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.3% CDW Corp.+ ..................... 77,200 $ 4,457,528 Sanmina-SCI Corp.* ............. 440,000 4,268,000 Flextronics International Ltd.*+ ....................... 143,300 2,031,994 ----------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 10,757,522 ----------------- TOTAL INFORMATION TECHNOLOGY 502,138,443 ----------------- CONSUMER DISCRETIONARY 15.6% INTERNET & CATALOG RETAIL 6.1% eBay, Inc.*+ ................... 390,800 20,911,708 InterActiveCorp*+ .............. 621,000 20,524,050 Amazon.com, Inc.*+ ............. 213,200 10,310,352 ----------------- TOTAL INTERNET & CATALOG RETAIL 51,746,110 ----------------- MEDIA 4.5% Comcast Corp.-- Class A*+ .................... 760,900 23,496,592 EchoStar Communications Corp.*+ ...................... 193,700 7,412,899 Pixar, Inc.*+ .................. 44,500 2,961,920 Lamar Advertising Co.* ......................... 89,800 2,634,732 PanAmSat Corp.*+ ............... 139,204 2,015,674 ----------------- TOTAL MEDIA 38,521,817 ----------------- SPECIALTY RETAIL 2.9% Bed Bath & Beyond, Inc.*+ ....................... 323,700 12,358,866 Staples, Inc.*+ ................ 263,900 6,267,625 Ross Stores, Inc.+ ............. 66,500 3,082,940 Petsmart, Inc.*+ ............... 118,100 2,680,870 ----------------- TOTAL SPECIALTY RETAIL 24,390,301 ----------------- HOTELS RESTAURANTS & LEISURE 1.5% Starbucks Corp.*+ .............. 434,900 12,525,120 ----------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TOTAL HOTELS RESTAURANTS & LEISURE $ 12,525,120 ----------------- MULTILINE RETAIL 0.4% Dollar Tree Stores, Inc.*+ ....................... 96,300 3,226,050 ----------------- TOTAL MULTILINE RETAIL 3,226,050 ----------------- AUTO COMPONENTS 0.2% Gentex Corp.* .................. 62,600 2,180,984 ----------------- TOTAL AUTO COMPONENTS 2,180,984 ----------------- TOTAL CONSUMER DISCRETIONARY 132,590,382 ----------------- HEALTH CARE 14.7% BIOTECHNOLOGY 11.6% Amgen, Inc.*+ .................. 525,300 33,918,621 Gilead Sciences, Inc.*+ ....................... 226,000 12,640,180 Genzyme Corp.*+ ................ 238,600 11,035,250 Biogen, Inc.*+ ................. 235,600 9,006,988 Chiron Corp.*+ ................. 128,800 6,657,672 Cephalon, Inc.*+ ............... 138,900 6,378,288 Millennium Pharmaceuticals, Inc.*+ ....................... 380,000 5,848,200 ICOS Corp.*+ ................... 91,600 3,510,112 MedImmune, Inc.*+ .............. 96,800 3,195,368 IDEC Pharmaceuticals Corp.*+ ...................... 94,200 3,122,730 Human Genome Sciences, Inc.*+ ............. 169,100 2,309,906 Invitrogen Corp.* .............. 16,100 933,639 ----------------- TOTAL BIOTECHNOLOGY 98,556,954 ----------------- HEALTH CARE PROVIDERS & SERVICES 1.5% Express Scripts, Inc.*+ ........ 67,600 4,133,740 Patterson Dental Co.*+ ........................ 58,400 3,362,672 First Health Group Corp.* ....................... 111,700 2,920,955 Lincare Holdings, Inc.*+ ....................... 73,900 2,708,435 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 6 OTC FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TOTAL HEALTH CARE PROVIDERS & SERVICES $ 13,125,802 ----------------- HEALTH CARE EQUIPMENT & SUPPLIES 1.0% Biomet, Inc.+ .................. 139,800 4,698,678 DENTSPLY International, Inc.+ ......... 84,398 3,784,406 ----------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 8,483,084 ----------------- PHARMACEUTICALS 0.6% Teva Pharmaceutical Industries Ltd. -- SP ADR+ ...................... 84,900 4,852,035 ----------------- TOTAL PHARMACEUTICALS 4,852,035 ----------------- TOTAL HEALTH CARE 125,017,875 ----------------- INDUSTRIALS 4.5% COMMERCIAL SERVICES & SUPPLIES 2.2% Apollo Group, Inc.-- Class A*+ .................... 147,200 9,719,616 Cintas Corp.+ .................. 170,700 6,288,588 Monster Worldwide, Inc.*+ ....................... 105,600 2,659,008 ----------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 18,667,212 ----------------- MACHINERY 0.9% PACCAR, Inc.+ .................. 105,500 7,879,795 ----------------- TOTAL MACHINERY 7,879,795 ----------------- AIR FREIGHT & COURIERS 0.7% Expeditors International of Washington, Inc. .......... 94,400 3,248,304 C.H. Robinson Worldwide, Inc. .............. 64,800 2,411,208 ----------------- TOTAL AIR FREIGHT & COURIERS 5,659,512 ----------------- TRADING COMPANIES & DISTRIBUTORS 0.3% Fastenal Co.+ .................. 61,500 2,324,700 ----------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 2,324,700 ----------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- ELECTRICAL EQUIPMENT 0.2% American Power Conversion Corp. ............. 117,900 $ 2,020,806 ----------------- TOTAL ELECTRICAL EQUIPMENT 2,020,806 ----------------- AIRLINES 0.2% Ryanair Holdings PLC--SP ADR*+ ................ 46,000 1,863,000 ----------------- TOTAL AIRLINES 1,863,000 ----------------- TOTAL INDUSTRIALS 38,415,025 ----------------- TELECOMMUNICATION SERVICES 2.4% WIRELESS TELECOMMUNICATION SERVICES 2.4% Nextel Communications, Inc.--Class A*+ .............. 1,041,100 20,499,259 ----------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 20,499,259 ----------------- TOTAL TELECOMMUNICATION SERVICES 20,499,259 ----------------- CONSUMER STAPLES 1.1% FOOD & DRUG RETAILING 1.1% Costco Wholesale Corp.*+ ...................... 160,900 5,000,772 Whole Foods Market, Inc.*+ ....................... 77,000 4,248,860 ----------------- TOTAL FOOD & DRUG RETAILING 9,249,632 ----------------- TOTAL CONSUMER STAPLES 9,249,632 ----------------- MATERIALS 0.7% CONTAINERS & PACKAGING 0.4% Smurfit-Stone Container Corp.*+ ............ 194,900 2,919,602 ----------------- TOTAL CONTAINERS & PACKAGING 2,919,602 ----------------- CHEMICALS 0.3% Sigma-Aldrich Corp.+ ........... 52,000 2,700,880 ----------------- TOTAL CHEMICALS 2,700,880 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. SEMI-ANNUAL REPORT 7 OTC FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TOTAL MATERIALS $ 5,620,482 ----------------- ENERGY 0.3% ENERGY EQUIPMENT & SERVICES 0.3% Patterson-UTI Energy, Inc.* ......... 82,400 2,230,568 ----------------- TOTAL ENERGY EQUIPMENT & SERVICES 2,230,568 ----------------- TOTAL ENERGY 2,230,568 ----------------- TOTAL COMMON STOCKS (Cost $539,106,373) ................... $835,761,666 ----------------- FACE AMOUNT ------- FEDERAL AGENCY DISCOUNT NOTES 0.6% Fannie Mae 1.05% due 10/01/03 .................$5,000,000 5,000,000 ----------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $5,000,000) .................... 5,000,000 ----------------- REPURCHASE AGREEMENTS 0.9% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ................... 1,707,260 1,707,260 0.94% due 10/01/03 ................... 121,534 121,534 0.93% due 10/01/03 ................... 1,707,260 1,707,260 0.91% due 10/01/03 ................... 1,707,260 1,707,260 0.90% due 10/01/03 ................... 2,410,250 2,410,250 ----------------- TOTAL REPURCHASE AGREEMENTS (Cost $7,653,564) .................... 7,653,564 ----------------- TOTAL INVESTMENTS 100% (Cost $551,759,937) .................. $ 848,415,230 ================= ----------------------------------------------------------------------- UNREALIZED LOSS CONTRACTS (NOTE 1) ----------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 Nasdaq 100 Index Futures Contracts (Aggregate Market Value of Contracts $9,795,000) ................... 75 $ (423,725) December 2003 Nasdaq 100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,828,400) ................... 70 (69,591) ----------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $11,623,400) .................. $ (493,316) ================= *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 8 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- COMMON STOCKS 85.9% FINANCIALS 17.0% BANKS 7.6% Banknorth Group, Inc. ........... 10,100 $ 285,022 Sovereign Bancorp, Inc.+ ........ 15,210 282,145 Compass Bancshares, Inc. ........ 8,100 280,098 Commerce Bancorp, Inc./NJ+ ...................... 5,600 268,296 GreenPoint Financial Corp. ......................... 8,600 256,796 New York Community Bancorp, Inc.+ ................ 7,300 230,023 M&T Bank Corp. .................. 2,200 192,060 Colonial BancGroup, Inc.+ ......................... 9,000 129,960 Webster Financial Corp. ......... 3,200 127,616 Westamerica Bancorporation ................ 2,800 124,460 Investors Financial Services Corp. ................ 3,300 103,620 Associated Banc-Corp ............ 1,900 71,820 Mercantile Bankshares Corp. ......................... 1,200 48,000 National Commerce Financial Corp. ............... 1,000 24,880 TCF Financial Corp. ............. 300 14,385 --------------- TOTAL BANKS 2,439,181 --------------- INSURANCE 4.5% Fidelity National Financial, Inc.+ .............. 9,100 273,546 Everest Re Group Ltd.+ .......... 3,600 270,576 W.R. Berkley Corp. .............. 6,800 232,968 American Financial Group, Inc./OH ................ 8,000 174,000 Brown & Brown, Inc. ............. 5,500 169,290 First American Corp. ............ 6,500 161,850 Radian Group, Inc. .............. 2,400 106,560 Old Republic International Corp. ........... 1,300 43,017 --------------- TOTAL INSURANCE 1,431,807 --------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- DIVERSIFIED FINANCIALS 3.2% Legg Mason, Inc.+ ............... 3,700 $ 267,140 A.G. Edwards, Inc. .............. 5,300 203,573 SEI Investments Co. ............. 5,200 169,000 E*TRADE Group, Inc.*+ ........... 12,510 115,843 GATX Corp. ...................... 5,000 105,750 Neuberger Berman, Inc. .......... 2,000 83,740 LaBranche & Co., Inc. ........... 3,100 45,260 AmeriCredit Corp.*+ ............. 3,400 35,020 --------------- TOTAL DIVERSIFIED FINANCIALS 1,025,326 --------------- REAL ESTATE 1.7% Liberty Property Trust .......... 6,500 240,370 Hospitality Properties Trust ......................... 6,500 228,020 Mack-Cali Realty Corp. .......... 2,100 82,320 --------------- TOTAL REAL ESTATE 550,710 --------------- TOTAL FINANCIALS 5,447,024 --------------- INFORMATION TECHNOLOGY 13.8% SEMICONDUCTOR EQUIPMENT & PRODUCTS 4.2% Microchip Technology, Inc.+ ......................... 9,000 215,460 Intersil Corp.--Class A* ........ 6,000 142,800 Silicon Laboratories, Inc.* ......................... 3,100 139,345 International Rectifier Corp.*+ ....................... 3,304 123,702 Lam Research Corp.*+ ............ 5,500 121,825 Integrated Circuit Systems, Inc.* ................ 3,400 102,136 Cree, Inc.*+ .................... 5,400 100,008 Cypress Semiconductor Corp.*+ ....................... 5,600 99,008 Cabot Microelectronics Corp.*+ ....................... 1,500 83,610 Integrated Device Technology, Inc.* ............. 6,699 83,201 Atmel Corp.* .................... 17,310 69,413 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 9 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Lattice Semiconductor Corp.* ........................ 4,200 $ 29,862 LTX Corp.* ...................... 2,500 28,150 --------------- TOTAL SEMICONDUCTOR EQUIPMENT & PRODUCTS 1,338,520 --------------- SOFTWARE 2.8% Synopsys, Inc.* ................. 7,900 243,083 Sybase, Inc.* ................... 10,810 183,878 Cadence Design Systems, Inc.*+ ........................ 6,600 88,440 Ascential Software Corp.* ........................ 4,707 87,221 Macromedia, Inc.* ............... 3,500 86,590 Legato Systems, Inc.* ........... 5,700 63,897 Mentor Graphics Corp.*+ ....................... 3,400 59,602 Fair Isaac Corp. ................ 400 23,584 Network Associates, Inc.* ......................... 1,600 22,016 Activision, Inc.* ............... 1,200 14,340 RSA Security, Inc.* ............. 400 5,712 --------------- TOTAL SOFTWARE 878,363 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.3% CDW Corp.+ ...................... 5,300 306,022 National Instruments Corp.+ ........................ 3,300 132,825 Varian, Inc.* ................... 3,800 119,016 Vishay Intertechnology, Inc.* ......................... 6,500 113,880 Avnet, Inc.*+ ................... 4,500 74,340 --------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 746,083 --------------- IT CONSULTING & SERVICES 1.9% Affiliated Computer Services, Inc.-- Class A*+ ..................... 4,200 204,498 Acxiom Corp.* ................... 9,800 154,448 CheckFree Corp.* ................ 3,700 74,000 DST Systems, Inc.* .............. 1,800 67,680 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Certegy, Inc. ................... 2,100 $ 67,431 Keane, Inc.* .................... 2,500 31,950 --------------- TOTAL IT CONSULTING & SERVICES 600,007 --------------- COMPUTERS & PERIPHERALS 1.7% Diebold, Inc. ................... 4,000 202,600 SanDisk Corp.*+ ................. 2,500 159,350 Storage Technology Corp.* ........................ 3,900 94,146 Imation Corp. ................... 1,900 62,035 Quantum Corp.* .................. 6,300 19,404 --------------- TOTAL COMPUTERS & PERIPHERALS 537,535 --------------- COMMUNICATIONS EQUIPMENT 0.9% ADTRAN, Inc.+ ................... 1,500 91,770 McData Corp.-- Class A* ...................... 6,300 75,411 Avocent Corp.* .................. 1,900 57,551 Polycom, Inc.*+ ................. 3,000 49,830 3Com Corp.* ..................... 2,000 11,800 Harris Corp. .................... 100 3,579 Plantronics, Inc.* .............. 100 2,387 --------------- TOTAL COMMUNICATIONS EQUIPMENT 292,328 --------------- INTERNET SOFTWARE & SERVICES 0.0% Internet Security Systems, Inc.* ................ 100 1,250 --------------- TOTAL INTERNET SOFTWARE & SERVICES 1,250 --------------- TOTAL INFORMATION TECHNOLOGY 4,394,086 --------------- CONSUMER DISCRETIONARY 13.6% HOTELS RESTAURANTS & LEISURE 3.5% Brinker International, Inc.*+ ........................ 7,200 240,192 International Speedway Corp.--Class A ................ 5,200 228,228 Outback Steakhouse, Inc. ........ 4,600 174,202 Ruby Tuesday, Inc. .............. 5,200 125,372 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 10 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Park Place Entertainment Corp.* ........................ 12,510 $ 112,715 CBRL Group, Inc.+ ............... 2,900 102,892 Cheesecake Factory, Inc.*+ ........................ 2,100 75,957 GTECH Holdings Corp. ......................... 600 25,710 Krispy Kreme Doughnuts, Inc.* .............. 600 23,100 Applebee's International, Inc. .......................... 500 15,740 --------------- TOTAL HOTELS RESTAURANTS & LEISURE 1,124,108 --------------- MEDIA 3.0% Westwood One, Inc.* ............. 7,600 229,444 Washington Post Co.-- Class B ....................... 300 199,500 Emmis Communications Corp.--Class A* ............... 6,900 139,242 Entercom Communications Corp.* ........................ 2,300 103,086 Reader's Digest Association, Inc. ............. 7,300 102,127 Univision Communications, Inc.--Class A* ................ 2,600 83,018 Catalina Marketing Corp.* ........................ 3,300 50,127 Scholastic Corp.* ............... 1,200 34,548 --------------- TOTAL MEDIA 941,092 --------------- HOUSEHOLD DURABLES 2.0% Lennar Corp.-- Class A+ ...................... 2,600 202,254 Furniture Brands International, Inc.*+ ......... 5,200 125,320 D.R. Horton, Inc. ............... 3,400 111,180 Toll Brothers, Inc.*+ ........... 3,100 94,302 Hovnanian Enterprises, Inc.--Class A* ................ 600 38,622 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Mohawk Industries, Inc.* ........ 500 $ 35,660 Blyth, Inc. ..................... 1,100 29,678 --------------- TOTAL HOUSEHOLD DURABLES 637,016 --------------- SPECIALTY RETAIL 1.7% Pier 1 Imports, Inc. ............ 8,100 155,844 CarMax, Inc.* ................... 3,800 124,108 Michaels Stores, Inc.+ .......... 2,600 105,976 Abercrombie & Fitch Co.--Class A* ................. 2,300 63,733 Petsmart, Inc.* ................. 2,500 56,750 Chico's FAS, Inc.*+ ............. 900 27,576 Claire's Stores, Inc. ........... 600 20,076 --------------- TOTAL SPECIALTY RETAIL 554,063 --------------- MULTILINE RETAIL 1.3% Saks, Inc.* ..................... 15,010 173,066 Dollar Tree Stores, Inc.*+ ...... 2,900 97,150 99 Cents Only Stores* ........... 2,600 84,084 Neiman-Marcus Group, Inc.--Class A* ................ 1,200 50,040 --------------- TOTAL MULTILINE RETAIL 404,340 --------------- AUTO COMPONENTS 1.1% Lear Corp.*+ .................... 3,200 168,448 ArvinMeritor, Inc. .............. 6,200 110,422 BorgWarner, Inc. ................ 600 40,710 Bandag, Inc. .................... 1,200 40,476 --------------- TOTAL AUTO COMPONENTS 360,056 --------------- TEXTILES & APPAREL 1.0% Coach, Inc.* .................... 3,800 207,480 Timberland Co.-- Class A* ...................... 2,700 115,182 --------------- TOTAL TEXTILES & APPAREL 322,662 --------------- TOTAL CONSUMER DISCRETIONARY 4,343,337 --------------- HEALTH CARE 11.5% HEALTH CARE PROVIDERS & SERVICES 3.5% Lincare Holdings, Inc.* ......... 7,000 256,550 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Patterson Dental Co.* ........... 2,400 $ 138,192 AdvancePCS*+ .................... 2,800 127,596 Omnicare, Inc. .................. 2,900 104,574 Oxford Health Plans, Inc.* ......................... 2,400 99,144 Coventry Health Care, Inc.*+ ........................ 1,800 94,932 Health Net, Inc.* ............... 2,900 91,843 First Health Group Corp.* ........................ 2,200 57,530 PacifiCare Health Systems, Inc.* ................ 1,000 48,800 Henry Schein, Inc.* ............. 800 45,360 Community Health Systems, Inc.* ................ 1,300 28,210 Triad Hospitals, Inc.* .......... 600 18,168 LifePoint Hospitals, Inc.* ...... 200 4,810 --------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,115,709 --------------- PHARMACEUTICALS 3.0% Mylan Laboratories, Inc. ........ 7,300 282,145 IVAX Corp.* ..................... 9,000 176,400 Barr Laboratories, Inc.* ........ 1,900 129,599 ICN Pharmaceuticals, Inc. .......................... 6,300 108,108 Sepracor, Inc.* ................. 3,600 99,144 SICOR, Inc.* .................... 4,300 82,904 Pharmaceutical Resources, Inc.* ......................... 800 54,576 Perrigo Co. ..................... 2,900 36,917 --------------- TOTAL PHARMACEUTICALS 969,793 --------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.8% DENTSPLY International, Inc. .......................... 5,700 255,588 Varian Medical Systems, Inc.* ......................... 3,700 212,676 STERIS Corp.* ................... 8,100 186,462 Beckman Coulter, Inc. ........... 3,800 173,052 VISX, Inc.* ..................... 1,100 20,955 Cytyc Corp.* .................... 1,300 19,552 Apogent Technologies, Inc.* ......................... 700 14,602 --------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES $ 882,887 --------------- BIOTECHNOLOGY 2.2% Gilead Sciences, Inc.*+ ......... 5,400 302,022 IDEC Pharmaceuticals Corp.*+ ....................... 5,100 169,065 Millennium Pharmaceuticals, Inc.*+ ....... 8,600 132,354 Vertex Pharmaceuticals, Inc.*+ ........................ 9,300 114,390 --------------- TOTAL BIOTECHNOLOGY 717,831 --------------- TOTAL HEALTH CARE 3,686,220 --------------- INDUSTRIALS 10.7% COMMERCIAL SERVICES & SUPPLIES 4.3% D&B Corp.* ...................... 5,600 232,624 Manpower, Inc. .................. 6,000 222,600 Viad Corp. ...................... 8,600 205,368 Education Management Corp.* ........................ 3,300 190,311 Copart, Inc.* ................... 10,000 108,000 Stericycle, Inc.* ............... 1,800 84,906 Career Education Corp.* ......... 1,600 72,480 Corinthian Colleges, Inc.* ......................... 1,200 68,592 Rollins, Inc. ................... 3,300 58,872 DeVry, Inc.* .................... 2,300 54,418 United Rentals, Inc.* ........... 2,100 33,789 Republic Services, Inc. ......... 1,300 29,432 Sylvan Learning Systems, Inc.* ......................... 500 13,640 ChoicePoint, Inc.* .............. 100 3,350 --------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,378,382 --------------- MACHINERY 1.7% SPX Corp.*+ ..................... 3,100 140,368 Nordson Corp. ................... 5,300 137,217 Harsco Corp. .................... 3,000 115,410 Donaldson Co., Inc. ............. 1,400 75,460 Flowserve Corp.* ................ 2,800 56,840 --------------- TOTAL MACHINERY 525,295 --------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 12 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- AIR FREIGHT & COURIERS 1.3% Expeditors International of Washington, Inc. ........... 6,500 $ 223,665 J.B. Hunt Transport Services, Inc.* ............... 7,600 197,752 --------------- TOTAL AIR FREIGHT & COURIERS 421,417 --------------- CONSTRUCTION & ENGINEERING 1.1% Jacobs Engineering Group, Inc.* ......................... 3,600 162,360 Granite Construction, Inc. .......................... 7,200 134,496 Quanta Services, Inc.* .......... 4,900 40,523 --------------- TOTAL CONSTRUCTION & ENGINEERING 337,379 --------------- AEROSPACE & DEFENSE 0.9% L-3 Communications Holdings, Inc.*+ .............. 4,800 207,600 Precision Castparts Corp. ......................... 2,200 77,220 Sequa Corp.--Class A* ........... 100 4,281 --------------- TOTAL AEROSPACE & DEFENSE 289,101 --------------- AIRLINES 0.6% JetBlue Airways Corp.*+ ......... 2,005 122,245 Alaska Air Group, Inc.* ......... 2,800 77,896 --------------- TOTAL AIRLINES 200,141 --------------- MARINE 0.5% Alexander & Baldwin, Inc. .......................... 6,000 168,480 --------------- TOTAL MARINE 168,480 --------------- INDUSTRIAL CONGLOMERATES 0.3% ALLETE, Inc. .................... 2,300 62,974 Teleflex, Inc. .................. 800 34,744 --------------- TOTAL INDUSTRIAL CONGLOMERATES 97,718 --------------- ELECTRICAL EQUIPMENT 0.0% AMETEK, Inc. .................... 300 12,858 --------------- TOTAL ELECTRICAL EQUIPMENT 12,858 --------------- TOTAL INDUSTRIALS 3,430,771 --------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- UTILITIES 5.6% MULTI-UTILITIES 2.7% SCANA Corp.+ .................... 7,600 $ 260,300 Energy East Corp. ............... 11,010 246,954 MDU Resources Group, Inc. .......................... 6,500 219,570 Sierra Pacific Resources Corp.*+ ....................... 14,610 70,859 Westar Energy, Inc. ............. 3,000 55,350 Questar Corp. ................... 200 6,162 --------------- TOTAL MULTI-UTILITIES 859,195 --------------- ELECTRIC UTILITIES 2.3% Wisconsin Energy Corp. .......... 8,500 259,845 Pepco Holdings, Inc. ............ 13,407 231,673 Great Plains Energy, Inc.+ ......................... 6,500 197,080 DPL, Inc. ....................... 3,300 56,595 NSTAR ........................... 100 4,750 IDACORP, Inc. ................... 2 51 --------------- TOTAL ELECTRIC UTILITIES 749,994 --------------- GAS UTILITIES 0.6% WGL Holdings, Inc. .............. 6,700 184,786 --------------- TOTAL GAS UTILITIES 184,786 --------------- TOTAL UTILITIES 1,793,975 --------------- ENERGY 5.6% OIL & GAS 3.7% Murphy Oil Corp.+ ............... 5,298 311,257 Pioneer Natural Resources Co.* .......................... 9,200 234,232 Valero Energy Corp. ............. 5,100 195,177 Forest Oil Corp.*+ .............. 7,500 179,625 Overseas Shipholding Group, Inc.+ .................. 6,300 162,855 Pogo Producing Co. .............. 2,000 90,560 XTO Energy, Inc. ................ 200 4,198 --------------- TOTAL OIL & GAS 1,177,904 --------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES 1.9% Weatherford International Ltd.*+ ........................ 4,000 $ 151,120 Hanover Compressor Co.* .......................... 14,110 139,689 ENSCO International, Inc.+ ......................... 5,200 139,464 Pride International, Inc.*+ ........................ 4,900 83,055 Tidewater, Inc. ................. 2,800 79,240 FMC Technologies, Inc.* ......................... 2 43 --------------- TOTAL ENERGY EQUIPMENT & SERVICES 592,611 --------------- TOTAL ENERGY 1,770,515 --------------- CONSUMER STAPLES 4.1% FOOD PRODUCTS 2.0% J.M. Smucker Co. ................ 5,000 210,800 Dean Foods Co.* ................. 6,100 189,283 Tyson Foods, Inc.-- Class A+ ...................... 13,210 186,657 Lancaster Colony Corp. .......... 1,800 71,586 --------------- TOTAL FOOD PRODUCTS 658,326 --------------- FOOD & DRUG RETAILING 1.1% Whole Foods Market, Inc.*+ ................ 3,800 209,684 Ruddick Corp. ................... 7,900 122,766 BJ's Wholesale Club, Inc.* ......................... 400 7,748 --------------- TOTAL FOOD & DRUG RETAILING 340,198 --------------- HOUSEHOLD PRODUCTS 1.0% Church & Dwight Co., Inc. .......................... 5,600 195,944 Dial Corp. ...................... 5,300 114,162 --------------- TOTAL HOUSEHOLD PRODUCTS 310,106 --------------- TOTAL CONSUMER STAPLES 1,308,630 --------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- MATERIALS 3.5% CHEMICALS 1.1% Albemarle Corp. ................. 6,300 $ 172,935 Cabot Corp. ..................... 2,600 74,126 Minerals Technologies, Inc.+ ......................... 1,100 55,990 Crompton Corp. .................. 9,605 55,805 --------------- TOTAL CHEMICALS 358,856 --------------- PAPER & FOREST PRODUCTS 0.9% Bowater, Inc.+ .................. 4,700 197,682 Potlatch Corp. .................. 2,800 83,216 --------------- TOTAL PAPER & FOREST PRODUCTS 280,898 --------------- METALS & MINING 0.9% Peabody Energy Corp. ............ 5,000 156,850 Arch Coal, Inc.+ ................ 4,200 93,282 Carpenter Technology Corp. ......................... 800 17,152 AK Steel Holding Corp.* ........................ 3,900 7,800 --------------- TOTAL METALS & MINING 275,084 --------------- CONTAINERS & PACKAGING 0.6% Longview Fibre Co. .............. 13,010 127,108 Sonoco Products Co. ............. 3,500 76,825 --------------- TOTAL CONTAINERS & PACKAGING 203,933 --------------- TOTAL MATERIALS 1,118,771 --------------- TELECOMMUNICATION SERVICES 0.5% DIVERSIFIED TELECOMMUNICATION SERVICES 0.3% Cincinnati Bell, Inc.* .......... 16,310 83,018 --------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 83,018 --------------- WIRELESS TELECOMMUNICATION SERVICES 0.2% Telephone & Data Systems, Inc. ................. 1,300 73,502 --------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 73,502 --------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 14 MEDIUS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE (NOTE 1) ----------------------------------------------------------------------- TOTAL TELECOMMUNICATION SERVICES $ 156,520 --------------- TOTAL COMMON STOCKS (Cost $24,335,734) ................ 27,449,849 --------------- FACE AMOUNT ------- FEDERAL AGENCY DISCOUNT NOTES 3.1% Fannie Mae 1.05% due 10/01/03 .............. $1,000,000 1,000,000 --------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $1,000,000) ................. 1,000,000 --------------- REPURCHASE AGREEMENTS 11.0% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ................ 786,080 786,080 0.94% due 10/01/03 ................ 55,958 55,958 0.93% due 10/01/03 ................ 786,080 786,080 0.91% due 10/01/03 ................ 786,080 786,080 0.90% due 10/01/03 ................ 1,109,760 1,109,760 --------------- TOTAL REPURCHASE AGREEMENTS (Cost $3,523,958) ................. 3,523,958 --------------- TOTAL INVESTMENTS 100% (Cost $28,859,692) ................ $ 31,973,807 =============== ----------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) ----------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 S&P Mid Cap 400 Index Futures Contracts (Aggregate Market Value of Contracts $5,355,000) ... 21 $ (71,651) =============== UNITS ------- EQUITY INDEX SWAP AGREEMENT October 2003 S&P Mid Cap 400 Index Swaps, Maturing 10/29/03* (Notional Value $14,431,877) ...................... 29,337 $ 612,148 =============== *PRICE RETURN BASED ON S&P MID CAP 400 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- COMMON STOCKS 70.9% FINANCIALS 15.4% BANKS 5.4% S&T Bancorp, Inc. .............. 31,515 $ 898,178 South Financial Group, Inc. ......................... 20,375 507,134 NetBank, Inc. .................. 31,620 393,669 Oriental Financial Group, Inc. .................. 14,538 352,692 Flagstar Bancorp, Inc. ......... 14,750 338,513 Firstbank Corp./MI ............. 10,533 333,896 Allegiant Bancorp, Inc. ......................... 16,261 328,472 WFS Financial, Inc.* ........... 7,236 267,949 Harbor Florida Bancshares, Inc. ............. 8,784 234,181 WSFS Financial Corp. ........... 5,421 228,766 First Citizens BancShares, Inc.-- Class A ...................... 2,058 217,531 Independent Bank Corp./MA ..................... 8,175 209,362 MAF Bancorp, Inc. .............. 4,910 187,562 St. Francis Capital Corp. ........................ 6,221 183,146 Irwin Financial Corp. .......... 6,970 169,371 CB Bancshares, Inc. ............ 2,462 150,800 Mercantile Bank Corp. .......... 4,510 149,732 Silicon Valley Bancshares* .................. 4,270 117,980 Columbia Banking Systems, Inc. ................ 6,530 114,797 R&G Financial Corp.-- Class B ...................... 3,100 90,520 IBERIABANK Corp. ............... 1,550 81,561 Provident Financial Services, Inc. ............... 3,977 76,199 Umpqua Holdings Corp. ........................ 3,100 58,993 Staten Island Bancorp, Inc. ......................... 2,770 53,877 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TierOne Corp.* ................. 1,950 $ 41,048 Dime Community Bancshares ................... 1,640 37,720 UCBH Holdings, Inc. ............ 1,240 37,485 GBC Bancorp/CA ................. 6 230 Sterling Bancshares, Inc./TX ...................... 10 119 Waypoint Financial Corp. ........................ 1 20 ----------------- TOTAL BANKS 5,861,503 ----------------- REAL ESTATE 3.8% Anthracite Capital, Inc. ......................... 94,139 908,441 Heritage Property Investment Trust ............. 27,516 794,662 Universal Health Realty Income Trust ................. 20,441 554,973 Health Care REIT, Inc. ......... 13,095 403,981 Pennsylvania Real Estate Investment Trust ........................ 11,656 389,893 Brandywine Realty Trust ........................ 13,398 344,195 Corrections Corp. of America* ..................... 13,508 333,242 Apex Mortgage Capital, Inc. ......................... 37,538 201,954 Tanger Factory Outlet Centers, Inc. ................ 1,549 56,926 Novastar Financial, Inc. ......................... 910 52,298 Capital Automotive REIT+ ........................ 1,410 43,019 ----------------- TOTAL REAL ESTATE 4,083,584 ----------------- INSURANCE 3.7% LandAmerica Financial Group, Inc. .................. 19,566 896,906 Stewart Information Services Corp.* .............. 21,683 612,328 21st Century Insurance Group ........................ 41,640 573,799 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. REIT--REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. 16 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- ProAssurance Corp.* ............ 17,304 $ 446,962 Hilb, Rogal & Hamilton Co. ................. 12,087 375,181 U.S.I. Holdings Corp.* ....................... 26,592 345,962 AmerUs Group Co.+ .............. 8,783 298,622 PMA Capital Corp.-- Class A+ ..................... 21,178 265,360 Commerce Group, Inc. ......................... 5,421 205,781 ----------------- TOTAL INSURANCE 4,020,901 ----------------- DIVERSIFIED FINANCIALS 2.5% W Holding Co., Inc. ............ 38,190 683,601 CompuCredit Corp.* ............. 34,716 607,530 GATX Corp. ..................... 15,560 329,094 Anchor BanCorp Wisconsin, Inc. .............. 12,185 286,104 First Niagara Financial Group, Inc. .................. 16,464 248,607 World Acceptance Corp.* ....................... 13,297 180,174 New Century Financial Corp. ........................ 5,330 150,946 Saxon Capital, Inc.* ........... 4,980 85,357 Investment Technology Group, Inc.* ................. 4,202 80,594 ----------------- TOTAL DIVERSIFIED FINANCIALS 2,652,007 ----------------- TOTAL FINANCIALS 16,617,995 ----------------- INFORMATION TECHNOLOGY 15.1% ELECTRONIC EQUIPMENT & INSTRUMENTS 3.3% Varian, Inc.* .................. 15,008 470,050 OSI Systems, Inc.* ............. 22,620 391,326 Methode Electronics, Inc.--Class A ................ 30,065 355,068 DSP Group, Inc.* ............... 10,845 270,149 Fargo Electronics, Inc.* ........................ 17,710 223,146 Checkpoint Systems, Inc.* ........................ 12,791 202,098 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Benchmark Electronics, Inc.* ........... 4,010 $ 169,503 SureBeam Corp.-- Class A*+ .................... 82,792 118,393 Lexar Media, Inc.* ............. 6,767 115,310 Cognex Corp. ................... 4,270 112,258 KEMET Corp.* ................... 7,981 101,678 Planar Systems, Inc.* .......... 4,680 100,386 Coherent, Inc.* ................ 4,007 98,692 Trimble Navigation Ltd.* ........................ 4,210 97,461 FLIR Systems, Inc.* ............ 3,570 91,463 ScanSource, Inc.* .............. 2,420 88,427 TTM Technologies, Inc.* ........................ 5,729 81,810 Itron, Inc.* ................... 4,008 80,441 Excel Technology, Inc.* ........................ 2,457 61,425 Keithley Instruments, Inc. ......................... 4,277 60,519 Research Frontiers, Inc.*+ ....................... 4,270 48,973 Paxar Corp.* ................... 3,060 39,168 RadiSys Corp.* ................. 2,160 38,966 Daktronics, Inc.* .............. 2,420 38,744 Rogers Corp.* .................. 1,240 38,465 Veeco Instruments, Inc.* ........................ 1,750 34,930 Metrologic Instruments, Inc.* ........................ 910 32,751 ----------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 3,561,600 ----------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS 2.9% Cabot Microelectronics Corp.*+ ...................... 7,777 433,490 Alliance Semiconductor Corp.* ....................... 41,248 224,389 Standard Microsystems Corp.* ....................... 7,170 193,447 Vitesse Semiconductor Corp.* ....................... 28,751 184,006 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Zoran Corp.* ................... 8,615 $ 167,992 Rudolph Technologies, Inc.* ........................ 8,620 166,452 Photronics, Inc.*+ ............. 6,837 145,355 OmniVision Technologies, Inc.*+ ....................... 3,100 130,944 Cymer, Inc.* ................... 2,460 101,352 Siliconix, Inc.* ............... 1,950 97,968 Skyworks Solutions, Inc.*+ ....................... 10,540 95,914 Entegris, Inc.*+ ............... 8,286 93,632 Power Integrations, Inc.* ........................ 2,760 91,742 Exar Corp.* .................... 6,430 90,856 Diodes, Inc.* .................. 4,010 82,566 Kopin Corp.* ................... 10,140 70,270 Microsemi Corp.* ............... 4,510 68,732 GlobespanVirata, Inc.* ......... 8,925 64,439 Monolithic System Technology, Inc.* ............ 7,578 63,731 Conexant Systems, Inc.* ........................ 11,140 63,052 Ultratech, Inc.* ............... 2,050 57,851 Mykrolis Corp.* ................ 4,716 57,252 Lattice Semiconductor Corp.* ....................... 7,477 53,161 Brooks Automation, Inc.* ........................ 2,160 45,144 Actel Corp.*+ .................. 1,850 44,345 Cirrus Logic, Inc.* ............ 6,930 38,323 PDF Solutions, Inc.* ........... 3,270 36,788 Kulicke & Soffa Industries, Inc.* 3,370 36,531 Xicor, Inc.* ................... 3,700 34,373 Semtech Corp.* ................. 1,850 34,151 Helix Technology Corp. ........................ 2,060 33,722 Varian Semiconductor Equipment Associates, Inc.* ........................ 13 487 ----------------- TOTAL SEMICONDUCTOR EQUIPMENT & PRODUCTS 3,102,457 ----------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT 2.0% Tellium, Inc.* ................. 216,196 $ 304,836 CommScope, Inc.* ............... 19,564 235,942 Adaptec, Inc.* ................. 28,754 217,380 Plantronics, Inc.* ............. 7,170 171,148 Sonus Networks, Inc.*+ ....................... 23,840 165,211 PC-Tel, Inc.* .................. 12,050 128,573 Andrew Corp.*+ ................. 7,370 90,577 Echelon Corp.*+ ................ 7,239 86,144 F5 Networks, Inc.* ............. 4,210 81,000 Sycamore Networks, Inc.* ........................ 15,050 73,745 Black Box Corp. ................ 1,750 69,668 New Focus, Inc.* ............... 14,908 66,937 Inter-Tel, Inc. ................ 2,460 60,393 Aspect Communications Corp.* ....................... 6,837 56,952 Packeteer, Inc.* ............... 4,610 55,551 Artisan Components, Inc.* ........................ 3,100 52,111 FalconStor Software, Inc.*+ ....................... 8,183 51,226 Ditech Communications Corp.* ....................... 5,830 51,187 Finisar Corp.*+ ................ 19,830 44,618 ViaSat, Inc.* .................. 2,460 43,813 Enterasys Networks, Inc.* ........................ 10,334 41,336 SpectraLink Corp.* ............. 2,060 38,481 Symmetricom, Inc.* ............. 10 63 SCM Microsystems, Inc.* ........................ 7 51 Concerto Software, Inc.* ........................ 3 26 ----------------- TOTAL COMMUNICATIONS EQUIPMENT 2,186,969 ----------------- COMPUTERS & PERIPHERALS 2.0% Transmeta Corp./DE* .................... 389,553 1,090,748 Hutchinson Technology, Inc.* ........................ 5,117 169,373 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 18 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Avid Technology, Inc.*+ ....................... 3,060 $ 161,690 ActivCard Corp.* ............... 18,720 153,504 Silicon Graphics, Inc.*+ ....................... 147,535 141,634 Electronics for Imaging, Inc.* ........................ 5,330 124,296 Komag, Inc.* ................... 3,978 69,695 Dot Hill Systems Corp.* ....................... 4,370 60,131 Rainbow Technologies, Inc.* ........................ 6,267 57,280 Stratasys, Inc.* ............... 1,110 47,308 Overland Storage, Inc.* ........................ 2,420 35,695 Neoware Systems, Inc.* ........................ 2,050 34,994 Innovex, Inc./MN* .............. 2,960 29,452 ----------------- TOTAL COMPUTERS & PERIPHERALS 2,175,800 ----------------- SOFTWARE 2.0% THQ, Inc.* ..................... 16,264 267,057 Lawson Software, Inc.* ........................ 19,120 135,561 Atari, Inc.* ................... 29,497 120,643 Kronos, Inc./MA* ............... 2,250 119,047 Sybase, Inc.* .................. 6,969 118,543 Renaissance Learning, Inc.*+ ....................... 4,680 110,448 ANSYS, Inc.* ................... 2,860 101,644 BARRA, Inc.* ................... 2,350 88,242 MICROS Systems, Inc.* ........................ 2,566 87,629 RSA Security, Inc.* ............ 6,130 87,536 StorageNetworks, Inc.* ........................ 49,030 80,409 Ascential Software Corp.* ....................... 4,010 74,305 Mentor Graphics Corp.*+ ...................... 4,210 73,801 PracticeWorks, Inc.* ........... 3,100 66,557 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Take-Two Interactive Software, Inc.* .............. 1,640 $ 56,039 Legato Systems, Inc.* .......... 4,720 52,911 Midway Games, Inc.*+ ....................... 17,569 52,004 Intervoice, Inc.* .............. 5,424 48,491 Sonic Solutions, Inc.* ......... 3,170 44,158 Epicor Software Corp.* ....................... 4,810 43,001 Portal Software, Inc.* ......... 2,998 42,722 Progress Software Corp.* ....................... 1,950 41,925 MicroStrategy, Inc.-- Class A* ..................... 910 41,869 Micromuse, Inc.* ............... 4,720 38,610 Systems & Computer Technology Corp.* ............ 3,570 37,235 SAFLINK Corp.* ................. 7,980 36,708 Parametric Technology Corp.* ....................... 11,650 36,348 SPSS, Inc.* .................... 2,050 34,584 Tradestation Group, Inc.* ........................ 3,870 28,917 ----------------- TOTAL SOFTWARE 2,166,944 ----------------- INTERNET SOFTWARE & SERVICES 1.6% EarthLink, Inc.* ............... 35,827 294,856 Overture Services, Inc.* ........................ 9,325 247,019 Ariba, Inc.* ................... 63,130 191,915 S1 Corp.* ...................... 28,551 144,183 United Online, Inc.* ........... 3,800 131,936 AsiaInfo Holdings, Inc.* ........................ 13,090 88,227 j2 Global Communications, Inc.* ........................ 2,250 85,118 Ask Jeeves, Inc.*+ ............. 4,410 76,734 Akamai Technologies, Inc.* ........................ 17,574 75,392 Sohu.com, Inc.*+ ............... 2,420 75,262 Internet Security Systems, Inc.* ............... 4,410 55,125 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- CNET Networks, Inc.* ........................ 7,577 $ 53,645 Websense, Inc.* ................ 2,160 45,943 TheStreet.com, Inc.* ........... 8,217 36,977 ValueClick, Inc.* .............. 4,210 35,406 FindWhat.com* .................. 1,750 30,240 PEC Solutions, Inc.* ........... 1,950 28,782 ----------------- TOTAL INTERNET SOFTWARE & SERVICES 1,696,760 ----------------- IT CONSULTING & SERVICES 1.3% MPS Group, Inc.* ............... 20,133 181,197 eFunds Corp.* .................. 14,340 177,099 CSG Systems International, Inc.* ......... 9,530 140,758 Intrado, Inc.* ................. 5,330 121,417 ManTech International Corp.--Class A* .............. 3,870 96,286 Keane, Inc.* ................... 7,377 94,278 SRA International, Inc.--Class A* ............... 2,465 92,265 CompuCom Systems, Inc.* ........................ 18,928 79,498 MedQuist, Inc.* ................ 4,008 77,595 Tier Technologies, Inc.--Class B* ............... 7,244 64,544 CACI International, Inc.--Class A* ............... 1,450 62,133 Titan Corp.* ................... 2,419 50,412 Gartner, Inc.-- Class A* ..................... 4,412 48,620 Sapient Corp.* ................. 12,356 44,358 iPayment Holdings, Inc.* ........................ 1,550 35,278 SYKES Enterprises, Inc.* ........................ 5,220 34,556 Carreker Corp.* ................ 4 32 ----------------- TOTAL IT CONSULTING & SERVICES 1,400,326 ----------------- TOTAL INFORMATION TECHNOLOGY 16,290,856 ----------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- CONSUMER DISCRETIONARY 10.2% SPECIALTY RETAIL 3.0% Hancock Fabrics, Inc./DE ...................... 32,021 $ 505,291 Movie Gallery, Inc.* ........... 14,307 281,133 Building Material Holding Corp. ................ 18,817 246,503 Pacific Sunwear of California, Inc.* ............ 8,720 180,155 Aaron Rents, Inc. .............. 8,080 169,276 United Auto Group, Inc.* ........................ 6,833 157,159 Footstar, Inc.* ................ 19,666 132,942 West Marine, Inc.* ............. 6,837 130,245 Group 1 Automotive, Inc.* ........................ 3,060 105,692 Electronics Boutique Holdings Corp.* .............. 3,670 104,852 PETCO Animal Supplies, Inc.* .............. 3,270 102,024 Guitar Center, Inc.* ........... 3,170 101,947 Christopher & Banks Corp. ........................ 4,270 101,882 Stage Stores, Inc.* ............ 3,800 96,824 Monro Muffler Brake, Inc.* ........................ 3,165 93,684 Friedman's, Inc.-- Class A ...................... 4,978 69,443 Lithia Motors, Inc.-- Class A ...................... 3,402 67,938 Finish Line, Inc.-- Class A* ..................... 2,420 63,646 Hibbett Sporting Goods, Inc.* ................. 2,460 58,843 Aeropostale, Inc.* ............. 2,050 55,453 Select Comfort Corp.* ....................... 2,050 54,325 Mothers Work, Inc.* ............ 1,640 49,774 A.C. Moore Arts & Crafts, Inc.* ................ 2,050 45,674 Childrens Place Retail Stores, Inc.* ................ 2,660 45,619 *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 20 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Zale Corp.* .................... 810 $ 35,972 Pomeroy IT Solutions, Inc. ......................... 2,660 33,782 American Eagle Outfitters, Inc.*+ ........... 2,250 33,435 Cato Corp.--Class A ............ 1,640 33,079 O'Reilly Automotive, Inc.* ........................ 10 368 Tractor Supply Co.* ............ 10 328 AnnTaylor Stores Corp.* ....................... 10 321 Regis Corp. .................... 10 321 Men's Wearhouse, Inc.* ........................ 10 257 ----------------- TOTAL SPECIALTY RETAIL 3,158,187 ----------------- HOTELS RESTAURANTS & LEISURE 2.1% Sonic Corp.* ................... 18,517 468,110 P.F. Chang's China Bistro, Inc.*+ ............... 5,320 241,262 Steak n Shake Co.* ............. 15,762 234,854 Ryan's Family Steak Houses, Inc.* ................ 14,915 190,763 Panera Bread Co.-- Class A* ..................... 3,665 150,118 Vail Resorts, Inc.* ............ 8,389 119,963 Shuffle Master, Inc.*+ ......... 2,960 80,453 Jack in the Box, Inc.* ......... 3,970 70,666 Landry's Restaurants, Inc. ......................... 3,400 70,040 Rare Hospitality International, Inc.* ......... 2,770 69,001 Papa John's International, Inc.*+ ....................... 2,770 68,724 Argosy Gaming Co.* ............. 2,660 64,904 Ameristar Casinos, Inc.* ........................ 2,460 61,598 California Pizza Kitchen, Inc.* ........................ 3,370 58,638 CKE Restaurants, Inc.* ........................ 8,990 57,985 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Scientific Games Corp.--Class A* .............. 4,370 $ 49,862 Isle of Capri Casinos, Inc.* ........................ 2,350 46,553 Lone Star Steakhouse & Saloon, Inc. ............... 2,160 45,144 Red Robin Gourmet Burgers, Inc.* ............... 1,710 43,537 Six Flags, Inc.* ............... 7,577 39,855 IHOP Corp. ..................... 1,110 36,463 CEC Entertainment, Inc.* ........................ 10 392 WMS Industries, Inc.* .......... 10 227 Aztar Corp.* ................... 10 177 Bally Total Fitness Holding Corp.* ............... 10 86 Pinnacle Entertainment, Inc.* ........................ 10 70 ----------------- TOTAL HOTELS RESTAURANTS & LEISURE 2,269,445 ----------------- MEDIA 2.0% Harris Interactive, Inc.* ........................ 57,910 407,686 Fidelity National Information Solutions, Inc.* ............. 13,408 333,189 Salem Communications Corp. /DE-- Class A* ..................... 14,745 285,906 Emmis Communications Corp.--Class A* .............. 11,750 237,115 AMC Entertainment, Inc.* ........................ 13,906 186,340 PRIMEDIA, Inc.* ................ 51,277 146,139 ADVO, Inc.*+ ................... 3,270 136,130 Gray Television, Inc. .......... 7,370 86,082 Paxson Communications Corp.* ....................... 14,546 72,148 ProQuest Co.* .................. 2,349 61,779 Charter Communications, Inc.--Class A* ............... 14,750 60,770 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Journal Register Co.* .......... 3,092 $ 57,975 Digital Generation Systems, Inc.* ............... 17,914 39,035 ----------------- TOTAL MEDIA 2,110,294 ----------------- HOUSEHOLD DURABLES 1.3% Kimball International, Inc.--Class B ................ 34,709 508,834 Yankee Candle Co., Inc.* ........................ 10,138 258,316 Beazer Homes USA, Inc.*+ ....................... 2,418 204,079 Libbey, Inc. ................... 5,923 164,719 Champion Enterprises, Inc.* ........................ 24,440 155,194 Hooker Furniture Corp. ........................ 1,643 57,456 Fleetwood Enterprises, Inc.*+ ....................... 4,510 41,808 Brookfield Homes Corp. ........................ 2,062 38,209 Applica, Inc. .................. 25 151 ----------------- TOTAL HOUSEHOLD DURABLES 1,428,766 ----------------- AUTO COMPONENTS 0.5% Standard Motor Products, Inc. ............... 20,975 211,847 Tower Automotive, Inc.* ........................ 23,033 103,649 Aftermarket Technology Corp.* ....................... 7,574 86,419 Goodyear Tire & Rubber Co. ................... 8,920 58,604 Superior Industries International, Inc. .......... 1,410 57,176 Keystone Automotive Industries, Inc.* ............ 1,850 40,145 ----------------- TOTAL AUTO COMPONENTS 557,840 ----------------- TEXTILES & APPAREL 0.5% Stride Rite Corp. .............. 28,243 305,024 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Warnaco Group, Inc.* ........... 8,177 $ 127,480 DHB Industries, Inc.* .......... 9,726 42,308 Brown Shoe Co., Inc. ........... 1,240 39,308 K-Swiss, Inc.-- Class A ...................... 1 36 ----------------- TOTAL TEXTILES & APPAREL 514,156 ----------------- LEISURE EQUIPMENT & PRODUCTS 0.3% SCP Pool Corp.* ................ 6,160 171,371 K2, Inc.* ...................... 7,168 106,445 Oakley, Inc.* .................. 6,669 66,690 Nautilus Group, Inc. ........... 10 126 JAKKS Pacific, Inc.* ........... 10 122 Meade Instruments Corp.* ....................... 5 17 ----------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 344,771 ----------------- INTERNET & CATALOG RETAIL 0.3% ValueVision Media, Inc.-- Class A* ..................... 15,653 249,039 Netflix, Inc.*+ ................ 2,460 82,681 Insight Enterprises, Inc.* ........................ 10 152 ----------------- TOTAL INTERNET & CATALOG RETAIL 331,872 ----------------- MULTILINE RETAIL 0.1% Fred's, Inc. ................... 4,409 145,321 ----------------- TOTAL MULTILINE RETAIL 145,321 ----------------- AUTOMOBILES 0.1% Thor Industries, Inc. .......... 2,460 132,889 ----------------- TOTAL AUTOMOBILES 132,889 ----------------- DISTRIBUTORS 0.0% Handleman Co. .................. 2,154 36,359 ----------------- TOTAL DISTRIBUTORS 36,359 ----------------- TOTAL CONSUMER DISCRETIONARY 11,029,900 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 22 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- HEALTH CARE 10.2% BIOTECHNOLOGY 4.2% deCODE genetics, Inc.* ........................ 183,060 $ 862,213 CuraGen Corp.* ................. 100,275 504,383 Applera Corp.-- Celera Genomics Group* ....................... 33,370 390,095 Lexicon Genetics, Inc./TX* ..................... 72,247 372,794 Tularik, Inc.* ................. 17,402 171,584 InterMune, Inc.* ............... 8,620 164,470 SciClone Pharmaceuticals, Inc.* ........................ 20,060 158,474 Martek Biosciences Corp.* ....................... 2,857 150,478 ARIAD Pharmaceuticals, Inc.* ........................ 24,143 145,341 Abgenix, Inc.*+ ................ 9,530 138,090 Geron Corp.*+ .................. 9,830 134,671 Gen-Probe, Inc.* ............... 2,350 127,299 Regeneron Pharmaceuticals, Inc.* ........................ 6,837 120,810 Genencor International, Inc.* ........................ 7,570 118,773 Isis Pharmaceuticals, Inc.* ........................ 15,050 98,126 AVANT Immunotherapeutics, Inc.* ........................ 30,297 73,016 Nuvelo, Inc.* .................. 25,389 66,519 Cell Therapeutics, Inc.*+ ....................... 5,730 65,150 Ligand Pharmaceuticals, Inc.--Class B* ............... 4,720 60,841 Encysive Pharmaceuticals, Inc.* ........................ 9,496 59,920 Transkaryotic Therapies, Inc.* ........................ 5,330 55,698 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Dendreon Corp.* ................ 6,130 $ 54,250 OSI Pharmaceuticals, Inc.* ........................ 1,640 53,251 Peregrine Pharmaceuticals, Inc.*+ ....................... 23,640 50,826 Zymogenetics, Inc.* ............ 3,100 45,415 Enzo Biochem, Inc.* ............ 2,160 42,142 NeoPharm, Inc.*+ ............... 2,770 41,550 Digene Corp.* .................. 1,010 41,269 ILEX Oncology, Inc.* ........... 2,460 40,861 La Jolla Pharmaceutical Co.* ......................... 9,830 38,828 Medarex, Inc.* ................. 6,527 38,705 ImmunoGen, Inc.* ............... 8,381 37,295 AVI BioPharma, Inc.* ........... 7,070 36,552 ----------------- TOTAL BIOTECHNOLOGY 4,559,689 ----------------- HEALTH CARE EQUIPMENT & SUPPLIES 3.6% CardioDynamics International Corp.* ....................... 154,413 693,314 SurModics, Inc.*+ .............. 15,970 428,635 Ventana Medical Systems, Inc.* ............... 9,635 388,290 Thoratec Corp.* ................ 15,964 271,228 Cyberonics, Inc.* .............. 7,887 243,393 Advanced Neuromodulation Systems, Inc.* ............... 5,320 212,268 Kensey Nash Corp.* ............. 8,619 202,374 Viasys Healthcare, Inc.* ........................ 9,833 198,627 Datascope Corp. ................ 5,330 163,844 Dade Behring Holdings, Inc.* ........................ 4,810 135,882 Sybron Dental Specialties, Inc.* ........... 5,020 125,851 Nektar Therapeutics* ........... 9,090 116,352 INAMED Corp.* .................. 1,310 96,219 Osteotech, Inc.* ............... 10,540 86,323 Laserscope, Inc.* .............. 7,274 85,470 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Intuitive Surgical, Inc.* ........................ 4,913 $ 81,949 Cerus Corp.* ................... 13,500 62,505 Candela Corp.* ................. 4,510 57,548 BioLase Technology, Inc.* ........................ 4,980 56,822 Align Technology, Inc.* ........................ 4,410 55,169 TriPath Imaging, Inc.* ......... 5,659 49,233 I-STAT Corp.* .................. 3,572 47,758 EPIX Medical, Inc.* ............ 2,050 34,891 CONMED Corp.* .................. 4 83 ----------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,894,028 ----------------- HEALTH CARE PROVIDERS & SERVICES 1.2% NDCHealth Corp. ................ 22,928 480,342 Cerner Corp.*+ ................. 8,785 271,193 Accredo Health, Inc.* .......... 4,410 123,436 Odyssey Healthcare, Inc.* ........................ 3,400 101,388 Vital Images, Inc.* ............ 4,408 82,513 United Surgical Partners International, Inc.* ......... 2,350 66,505 eResearch Technology, Inc.* ........................ 1,850 64,436 IDX Systems Corp.* ............. 2,250 52,020 VistaCare, Inc.-- Class A* ..................... 1,240 38,812 Mid Atlantic Medical Services, Inc.* .............. 10 514 Priority Healthcare Corp.--Class B* .............. 10 205 Hooper Holmes, Inc. ............ 10 67 ----------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,281,431 ----------------- PHARMACEUTICALS 1.2% Guilford Pharmaceuticals, Inc.*+ ....................... 59,425 367,841 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- CollaGenex Pharmaceuticals, Inc.*+ ....................... 31,315 $ 336,010 Bentley Pharmaceuticals, Inc.* ........................ 7,777 126,376 Medicines Co.* ................. 4,510 117,260 MGI Pharma, Inc.* .............. 1,850 72,631 Kos Pharmaceuticals, Inc.* ........................ 1,850 63,640 Durect Corp.*+ ................. 17,918 60,204 Inspire Pharmaceuticals, Inc.* ........................ 2,660 45,752 Esperion Therapeutics, Inc.* ........................ 2,155 41,764 ----------------- TOTAL PHARMACEUTICALS 1,231,478 ----------------- TOTAL HEALTH CARE 10,966,626 ----------------- INDUSTRIALS 10.0% MACHINERY 2.4% Lindsay Manufacturing Co. .......................... 27,551 553,775 Tecumseh Products Co.--Class A ................. 12,998 484,955 Kadant, Inc.* .................. 13,086 250,728 Mueller Industries, Inc.* ........................ 8,688 221,110 Briggs & Stratton Corp. ........................ 2,760 162,178 ESCO Technologies, Inc.* ........................ 2,765 125,171 Milacron, Inc. ................. 51,784 119,103 Flowserve Corp.* ............... 4,682 95,045 EnPro Industries, Inc.* ........................ 8,077 77,943 Dionex Corp.* .................. 1,410 55,498 Ceradyne, Inc.* ................ 1,710 44,238 Lydall, Inc.* .................. 3,400 40,834 Thomas Industries, Inc. ......................... 1,410 40,213 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 24 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Stewart & Stevenson Services, Inc. ............... 2,560 $ 38,451 Albany International Corp.--Class A ............... 1,240 38,242 Robbins & Myers, Inc. .......... 1,710 38,030 Reliance Steel & Aluminum Co. ................. 1,710 37,945 Kaydon Corp. ................... 1,550 36,797 Timken Co. ..................... 2,350 35,814 CLARCOR, Inc. .................. 910 35,490 Joy Global, Inc.* .............. 2,250 35,325 Gardner Denver, Inc.* .......... 1,640 34,456 ----------------- TOTAL MACHINERY 2,601,341 ----------------- COMMERCIAL SERVICES & SUPPLIES 2.4% Imagistics International, Inc.* ........................ 8,996 260,704 Spherion Corp.* ................ 30,502 212,294 Consolidated Graphics, Inc.* ........................ 5,518 140,323 Brink's Co. .................... 6,833 118,621 ABM Industries, Inc. ........... 8,220 116,313 United Rentals, Inc.* .......... 7,169 115,349 Cornell Cos., Inc.* ............ 6,762 111,235 United Stationers, Inc.* ........................ 2,350 88,548 Korn/Ferry International, Inc.* ......... 10,433 86,072 John H. Harland Co. ............ 2,760 73,057 CoStar Group, Inc.* ............ 2,563 66,638 Heidrick & Struggles International, Inc.* ......... 3,870 65,519 SOURCECORP, Inc.* .............. 2,660 61,845 Exult, Inc.* ................... 7,170 57,647 Tetra Tech, Inc.* .............. 2,660 52,961 School Specialty, Inc.* ........ 1,750 49,367 NCO Group, Inc.* ............... 1,850 43,419 CPI Corp. ...................... 2,355 43,332 Ionics, Inc.* .................. 1,750 42,805 CDI Corp. ...................... 1,550 41,896 Watson Wyatt & Company Holdings* .................... 1,850 41,644 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Century Business Services, Inc.* .............. 9,800 $ 41,552 Pre-Paid Legal Services, Inc.*+ ............. 1,710 40,048 G & K Services, Inc.--Class A ................ 1,140 39,900 Mobile Mini, Inc.* ............. 2,049 39,525 Arbitron, Inc.* ................ 1,110 39,183 Angelica Corp. ................. 2,050 38,950 Waste Connections, Inc.* ........................ 1,110 38,950 Rollins, Inc. .................. 2,153 38,410 Kroll, Inc.*+ .................. 2,050 38,130 Portfolio Recovery Associates, Inc.* ............ 1,450 36,859 Roto-Rooter, Inc. .............. 1,010 35,906 Standard Register Co. .......... 2,160 35,856 Sylvan Learning Systems, Inc.* ............... 1,310 35,737 Brady Corp.--Class A ........... 1,110 35,309 Insurance Auto Auctions, Inc.* ........................ 3,100 34,875 Navigant Consulting, Inc.* ........................ 2,565 31,575 Central Parking Corp. .......... 2,559 31,348 ----------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 2,521,702 ----------------- ROAD & RAIL 2.1% Covenant Transport, Inc.--Class A* ............... 58,217 1,071,193 Dollar Thrifty Automotive Group, Inc.* ........................ 18,111 411,482 Kansas City Southern* .......... 16,770 185,644 Florida East Coast Industries, Inc. ............. 6,429 184,834 Roadway Corp. .................. 2,760 134,605 Arkansas Best Corp. ............ 4,817 132,467 Yellow Corp.* .................. 1,410 42,131 USF Corp. ...................... 1,240 39,023 Heartland Express, Inc. ........ 9 216 ----------------- TOTAL ROAD & RAIL 2,201,595 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- AIRLINES 0.8% SkyWest, Inc. .................. 15,150 $ 262,398 Continental Airlines, Inc.--Class B*+ .............. 9,926 164,573 AMR Corp.*+ .................... 13,294 152,216 AirTran Holdings, Inc.* ........................ 5,618 94,102 Alaska Air Group, Inc.* ........................ 2,357 65,572 America West Holdings Corp.--Class B*+ ............. 5,930 57,699 Frontier Airlines, Inc.* ....... 3,100 51,026 Atlantic Coast Airlines Holdings, Inc.* .............. 4,910 41,784 ----------------- TOTAL AIRLINES 889,370 ----------------- ELECTRICAL EQUIPMENT 0.8% Acuity Brands, Inc. ............ 16,769 302,848 Global Power Equipment Group, Inc.* ................. 52,590 277,149 Belden, Inc. ................... 3,700 64,639 Valence Technology, Inc.* ........................ 11,788 40,197 Power-One, Inc.* ............... 3,870 39,822 MagneTek, Inc.* ................ 7,682 38,026 Baldor Electric Co. ............ 1,750 36,943 Regal-Beloit Corp. ............. 1,710 34,884 II-VI, Inc.* ................... 1,550 30,985 ----------------- TOTAL ELECTRICAL EQUIPMENT 865,493 ----------------- AEROSPACE & DEFENSE 0.4% DRS Technologies, Inc.* ........................ 6,427 155,084 Triumph Group, Inc.* ........................ 1,550 46,190 Armor Holdings, Inc.* ........................ 2,560 42,880 Kaman Corp.-- Class A ...................... 3,060 39,658 Alliant Techsystems, Inc.* ........................ 810 38,920 Aviall, Inc.* .................. 3,060 37,883 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Esterline Technologies Corp.* ....................... 1,950 $ 37,615 Teledyne Technologies, Inc.* ........................ 2,560 37,248 ----------------- TOTAL AEROSPACE & DEFENSE 435,478 ----------------- CONSTRUCTION & ENGINEERING 0.3% Washington Group International, Inc.* ......... 8,280 223,146 Insituform Technologies, Inc.--Class A* ............... 3,870 68,731 Quanta Services, Inc.* ......... 4,273 35,338 ----------------- TOTAL CONSTRUCTION & ENGINEERING 327,215 ----------------- TRADING COMPANIES & DISTRIBUTORS 0.3% Hughes Supply, Inc. ............ 5,620 182,369 Aceto Corp. .................... 3,800 53,200 Lawson Products, Inc. .......... 1,410 37,858 Applied Industrial Technologies, Inc. ........... 1,710 33,978 ----------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 307,405 ----------------- INDUSTRIAL CONGLOMERATES 0.2% United Capital Corp. ........... 7,974 143,532 Tredegar Corp. ................. 3,370 50,718 Standex International Corp. ........................ 1,710 41,553 ----------------- TOTAL INDUSTRIAL CONGLOMERATES 235,803 ----------------- BUILDING PRODUCTS 0.2% USG Corp.* ..................... 4,372 75,373 ElkCorp ........................ 2,250 53,010 American Woodmark Corp. ........................ 810 36,255 Simpson Manufacturing Co., Inc.* ................... 840 34,348 ----------------- TOTAL BUILDING PRODUCTS 198,986 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 26 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- MARINE 0.1% Alexander & Baldwin, Inc. ......................... 3,100 $ 87,048 Kirby Corp.* ................... 1,310 37,597 ----------------- TOTAL MARINE 124,645 ----------------- TOTAL INDUSTRIALS 10,709,033 ----------------- MATERIALS 2.9% CHEMICALS 1.6% Arch Chemicals, Inc. ........... 24,445 508,456 Headwaters, Inc.*+ ............. 25,891 416,845 Great Lakes Chemical Corp. ........................ 17,913 360,230 FMC Corp.* ..................... 10,736 270,547 Wellman, Inc. .................. 13,294 99,838 W.R. Grace & Co.* .............. 14,211 44,054 Scotts Co.--Class A* ........... 10 547 MacDermid, Inc. ................ 10 265 H.B. Fuller Co. ................ 10 243 Georgia Gulf Corp. ............. 10 234 Cambrex Corp. .................. 10 227 OM Group, Inc.* ................ 10 146 Crompton Corp. ................. 20 116 PolyOne Corp. .................. 20 79 ----------------- TOTAL CHEMICALS 1,701,827 ----------------- METALS & MINING 0.6% USEC, Inc. ..................... 24,146 157,673 Liquidmetal Technologies, Inc.*+ ....................... 37,878 119,316 Steel Dynamics, Inc.* .......... 6,767 102,452 Massey Energy Co. .............. 6,670 88,711 Royal Gold, Inc.+ .............. 3,370 61,671 Commercial Metals Co. .......................... 3,270 60,070 Arch Coal, Inc.+ ............... 2,660 59,079 Hecla Mining Co.* .............. 5,830 30,549 Century Aluminum Co.* ......................... 29 315 A.M. Castle & Co.* ............. 40 178 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Ryerson Tull, Inc. ............. 10 $ 78 Allegheny Technologies, Inc. ......................... 10 65 Commonwealth Industries, Inc. ............. 10 47 ----------------- TOTAL METALS & MINING 680,204 ----------------- PAPER & FOREST PRODUCTS 0.5% Potlatch Corp. ................. 9,093 270,244 Louisiana-Pacific Corp.*+ ...................... 15,151 208,781 Buckeye Technologies, Inc.* ........................ 28 255 Pope & Talbot, Inc. ............ 3 45 ----------------- TOTAL PAPER & FOREST PRODUCTS 479,325 ----------------- CONTAINERS & PACKAGING 0.2% Crown Holdings, Inc.* ........................ 27,110 182,992 AptarGroup, Inc. ............... 10 367 Rock-Tenn Co.-- Class A ...................... 10 146 Myers Industries, Inc. ......... 10 100 ----------------- TOTAL CONTAINERS & PACKAGING 183,605 ----------------- CONSTRUCTION MATERIALS 0.0% Ameron International Corp. ........................ 1,143 37,730 Florida Rock Industries, Inc. ......................... 10 496 ----------------- TOTAL CONSTRUCTION MATERIALS 38,226 ----------------- TOTAL MATERIALS 3,083,187 ----------------- ENERGY 2.6% OIL & GAS 2.6% Overseas Shipholding Group, Inc.+ ................. 39,189 1,013,036 Energy Partners Ltd.* .......... 74,571 829,229 Evergreen Resources, Inc.*+ ....................... 19,258 519,966 Cimarex Energy Co.* ............ 3,400 66,640 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Spinnaker Exploration Co.* ......................... 1,750 $ 42,000 Nuevo Energy Co.* .............. 2,160 39,247 Vintage Petroleum, Inc. ......................... 3,470 37,753 Cabot Oil & Gas Corp. ........................ 1,450 37,700 Frontier Oil Corp. ............. 2,560 37,632 Remington Oil & Gas Corp.* ....................... 2,060 37,389 Tesoro Petroleum Corp.* ....................... 4,376 37,021 Stone Energy Corp.* ............ 1,010 35,633 Newfield Exploration Co.* ......................... 10 386 ----------------- TOTAL OIL & GAS 2,733,632 ----------------- ENERGY EQUIPMENT & SERVICES 0.0% Unit Corp.* .................... 1,750 32,970 Input/Output, Inc.* ............ 34 133 Cal Dive International, Inc.* ........................ 4 78 GulfMark Offshore, Inc.* ........................ 1 14 ----------------- TOTAL ENERGY EQUIPMENT & SERVICES 33,195 ----------------- TOTAL ENERGY 2,766,827 ----------------- CONSUMER STAPLES 2.2% FOOD PRODUCTS 1.2% Peet's Coffee & Tea, Inc.*+ ....................... 22,827 446,268 Sanderson Farms, Inc. ......................... 10,833 340,806 Pilgrims Pride Corp.-- Class B ...................... 13,604 170,050 Chiquita Brands International, Inc.* ........... 6,225 110,182 Central Garden & Pet Co.* ......................... 3,370 88,024 Lance, Inc. .................... 3,870 38,468 MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Delta and Pine Land Co. .......................... 1,550 $ 35,666 ----------------- TOTAL FOOD PRODUCTS 1,229,464 ----------------- FOOD & DRUG RETAILING 0.4% Central European Distribution Corp.*+ ...................... 7,470 204,305 United Natural Foods, Inc.* ........................ 3,670 121,807 7-Eleven, Inc.* ................ 4,417 60,645 Duane Reade, Inc.* ............. 2,250 35,888 Casey's General Stores, Inc. ......................... 2,460 34,514 Performance Food Group Co.* ................... 10 407 ----------------- TOTAL FOOD & DRUG RETAILING 457,566 ----------------- BEVERAGES 0.4% Coca-Cola Bottling Co. Consolidated ................. 7,677 385,001 ----------------- TOTAL BEVERAGES 385,001 ----------------- PERSONAL PRODUCTS 0.1% USANA Health Sciences, Inc.* .............. 2,760 133,170 ----------------- TOTAL PERSONAL PRODUCTS 133,170 ----------------- TOBACCO 0.1% Vector Group Ltd. .............. 6,428 92,563 ----------------- TOTAL TOBACCO 92,563 ----------------- HOUSEHOLD PRODUCTS 0.0% WD-40 Co. ...................... 1,310 41,514 ----------------- TOTAL HOUSEHOLD PRODUCTS 41,514 ----------------- TOTAL CONSUMER STAPLES 2,339,278 ----------------- UTILITIES 1.4% GAS UTILITIES 0.8% Northwest Natural Gas Co. ...................... 10,340 299,860 Atmos Energy Corp. ............. 12,050 288,477 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 28 MEKROS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- Laclede Group, Inc. ............ 7,982 $ 215,594 Cascade Natural Gas Corp. ........................ 2,050 40,180 Southern Union Co.* ............ 2,350 39,950 UGI Corp. ...................... 1,240 35,873 ----------------- TOTAL GAS UTILITIES 919,934 ----------------- ELECTRIC UTILITIES 0.3% Allegheny Energy, Inc.* ........................ 11,779 107,660 El Paso Electric Co.* .......... 6,368 73,550 CMS Energy Corp. ............... 6,054 44,618 UIL Holdings Corp. ............. 1,110 38,839 Central Vermont Public Service Corp. ................ 1,750 38,815 Empire District Electric Co. .......................... 1,750 38,500 ----------------- TOTAL ELECTRIC UTILITIES 341,982 ----------------- MULTI-UTILITIES 0.2% Sierra Pacific Resources Corp.*+ ...................... 35,590 172,612 ----------------- TOTAL MULTI-UTILITIES 172,612 ----------------- WATER UTILITIES 0.1% California Water Service Group ................ 2,466 63,647 American States Water Co. .......................... 1,550 36,534 ----------------- TOTAL WATER UTILITIES 100,181 ----------------- TOTAL UTILITIES 1,534,709 ----------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------- TELECOMMUNICATION SERVICES 0.9% DIVERSIFIED TELECOMMUNICATION SERVICES 0.6% Cincinnati Bell, Inc.* ......... 38,188 $ 194,377 Golden Telecom, Inc.* .......... 6,221 170,082 McLeodUSA, Inc.-- Class A*+ .................... 60,802 84,515 Primus Telecommunications Group, Inc.*+ ................ 11,140 75,195 General Communication, Inc.--Class A* ............... 4,910 40,851 Talk America Holdings, Inc.* ........................ 3,060 34,915 ----------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 599,935 ----------------- WIRELESS TELECOMMUNICATION SERVICES 0.3% Boston Communications Group, Inc.*+ ................ 10,440 104,097 At Road, Inc.* ................. 6,527 87,788 NII Holdings, Inc.-- Class B* ..................... 1,310 78,194 Western Wireless Corp.--Class A* .............. 3,800 70,832 ----------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 340,911 ----------------- TOTAL TELECOMMUNICATION SERVICES 940,846 ----------------- TOTAL COMMON STOCKS (Cost $74,941,249) .............. 76,279,257 ----------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 MEKROSFUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 9.3% Fannie Mae 1.05% due 10/01/03 ................ $10,000,000 $ 10,000,000 ----------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $10,000,000) ................ 10,000,000 ----------------- REPURCHASE AGREEMENTS 19.8% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ................ 4,754,171 4,754,171 0.94% due 10/01/03 ................ 338,432 338,432 0.93% due 10/01/03 ................ 4,754,171 4,754,171 0.91% due 10/01/03 ................ 4,754,171 4,754,171 0.90% due 10/01/03 ................ 6,711,770 6,711,770 ----------------- TOTAL REPURCHASE AGREEMENTS (Cost $21,312,715) ................ 21,312,715 ----------------- TOTAL INVESTMENTS 100% (Cost $106,253,964) ............... $ 107,591,972 ================= ----------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) ----------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 Russell 2000 Index Futures Contracts (Aggregate Market Value of Contracts $53,271,750) ............ 219 $ (2,390,762) December 2003 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $10,930,500) ............ 225 (193,751) ----------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $64,202,250) ... $ (2,584,513) ================= UNITS -------- EQUITY INDEX SWAP AGREEMENTS October 2003 Russell 2000 Index Swap, Maturing 10/01/03* (Notional Value $24,203,032) ...... 49,629 $ (1,110,629) October 2003 Russell 2000 Index Swap, Maturing 10/29/03* (Notional Value $707,902) ......... 12,785 2,874,558 ----------------- (TOTAL NOTIONAL VALUE $24,910,934) .. $ 1,763,929 ================= *PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. 30 U.S. GOVERNMENT BOND FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------------------------------------------------------------------- U. S. TREASURY OBLIGATIONS 79.1% U.S. Treasury Bond 5.38% due 02/15/31 ................ $57,958,000 $ 62,341,074 --------------- TOTAL U. S. TREASURY OBLIGATIONS (Cost $58,234,681) ................ 62,341,074 --------------- REPURCHASE AGREEMENTS 20.9% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ................ 3,680,077 3,680,077 0.94% due 10/01/03 ................ 261,972 261,972 0.93% due 10/01/03 ................ 3,680,077 3,680,077 0.91% due 10/01/03 ................ 3,680,077 3,680,077 0.90% due 10/01/03 ................ 5,195,404 5,195,404 --------------- TOTAL REPURCHASE AGREEMENTS (Cost $16,497,607) ................ 16,497,607 --------------- TOTAL INVESTMENTS 100% (Cost $74,732,288) ................ $ 78,838,681 =============== ----------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) ----------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $22,125,563) ............ 197 $ 844,296 =============== See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 LARGE-CAP EUROPE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 80.6% Federal Home Loan Bank 1.01% due 10/22/03 ................ $5,000,000 $ 4,997,054 --------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $4,997,054) ................. 4,997,054 --------------- REPURCHASE AGREEMENTS 19.4% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ................ 267,807 267,807 0.94% due 10/01/03 ................ 19,064 19,064 0.93% due 10/01/03 ................ 267,807 267,807 0.91% due 10/01/03 ................ 267,807 267,807 0.90% due 10/01/03 ................ 378,080 378,080 --------------- TOTAL REPURCHASE AGREEMENTS (Cost $1,200,565) ................. 1,200,565 --------------- TOTAL INVESTMENTS 100% (Cost $6,197,619) ................. $ 6,197,619 =============== ----------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) ----------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 Euro Currency Futures Contracts (Aggregate Market Value of Contracts $435,750) ............... 3 $ 16,920 =============== UNITS ------- EQUITY INDEX SWAP AGREEMENT October 2003 Dow Jones Europe STOXX 50 Index Swap, Maturing 10/09/03* (Notional Value $7,852,385) ....... 2,750 $ (95,867) =============== * PRICE RETURN BASED ON DOW JONES EUROPE STOXX 50 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. 32 LARGE-CAP JAPAN FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 83.8% Federal Home Loan Bank 1.00% due 10/17/03 ................ $50,000,000 $ 49,977,778 0.97% due 10/02/03 ................ 5,000,000 4,999,865 --------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $54,977,643) ................ 54,977,643 --------------- REPURCHASE AGREEMENTS 16.2% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ................ 2,376,715 2,376,715 0.94% due 10/01/03 ................ 169,190 169,190 0.93% due 10/01/03 ................ 2,376,715 2,376,715 0.91% due 10/01/03 ................ 2,376,715 2,376,715 0.90% due 10/01/03 ................ 3,355,363 3,355,363 --------------- TOTAL REPURCHASE AGREEMENTS (Cost $10,654,698) ................ 10,654,698 --------------- TOTAL INVESTMENTS 100% (Cost $65,632,341) ................ $ 65,632,341 =============== ----------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) ----------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 Yen Currency Exchange Futures Contracts (Aggregate Market Value of Contracts $5,397,600) ............. 48 $ 138,213 December 2003 Nikkei 225 Futures Contracts (Aggregate Market Value of Contracts $2,692,400) ............. 53 (148,911) --------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $8,090,000) .... $ (10,698) =============== UNITS ------- EQUITY INDEX SWAP AGREEMENT October 2003 Topix 100 Index Swap, Maturing 10/09/03* (Notional Value $82,585,040) ................ 12,430,374 $ 1,418,265 =============== *PRICE RETURN BASED ON TOPIX 100 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 U.S. GOVERNMENT MONEY MARKET FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 --------------------------------------------------------------------------------
MARKET FACE VALUE AMOUNT (NOTE 1) ---------------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 89.3% Fannie Mae 1.07% due 12/01/03+ .......................... $ 50,000,000 $ 49,909,347 1.05% due 12/24/03 ........................... 50,000,000 49,877,500 0.97% due 10/01/03 ........................... 25,000,000 25,000,000 1.00% due 10/08/03 ........................... 25,000,000 24,995,139 1.06% due 11/05/03 ........................... 25,000,000 24,974,236 1.04% due 12/24/03 ........................... 25,000,000 24,939,334 1.25% due 01/09/04+ .......................... 25,000,000 24,913,195 1.00% due 10/15/03 ........................... 10,000,000 9,996,111 1.33% due 12/12/03 ........................... 3,500,000 3,490,690 Farmer Mac 1.03% due 10/10/03 ........................... 50,000,000 49,987,125 1.05% due 11/25/03+ .......................... 50,000,000 49,919,792 1.05% due 11/24/03 ........................... 39,000,000 38,938,575 1.00% due 10/14/03 ........................... 25,000,000 24,990,972 1.03% due 12/18/03 ........................... 25,000,000 24,944,208 1.04% due 12/30/03 ........................... 25,000,000 24,935,000 1.05% due 11/03/03 ........................... 16,000,000 15,984,600 1.02% due 10/03/03 ........................... 15,000,000 14,999,150 1.03% due 10/16/03 ........................... 10,000,000 9,995,708 1.06% due 11/17/03 ........................... 10,000,000 9,986,161 Federal Farm Credit Bank 0.99% due 10/03/03 ........................... 25,000,000 24,998,625 1.25% due 10/15/03 ........................... 25,000,000 24,987,847 1.01% due 11/03/03 ........................... 25,000,000 24,976,854 1.01% due 11/26/03 ........................... 25,000,000 24,960,722 1.00% due 12/08/03 ........................... 25,000,000 24,952,778 1.00% due 11/18/03 ........................... 21,000,000 20,972,000 1.00% due 10/09/03 ........................... 15,000,000 14,996,667 1.00% due 01/15/04 ........................... 15,000,000 14,955,834 1.01% due 12/29/03 ........................... 11,000,000 10,972,534 1.00% due 10/01/03 ........................... 5,000,000 5,000,000 Federal Home Loan Bank 1.02% due 11/26/03 ........................... 100,000,000 99,841,333 1.03% due 10/08/03 ........................... 50,000,000 49,989,986 1.01% due 10/10/03 ........................... 50,000,000 49,987,375 1.04% due 10/31/03 ........................... 50,000,000 49,956,667 1.02% due 11/10/03 ........................... 50,000,000 49,943,333 1.01% due 11/12/03 ........................... 50,000,000 49,941,083 1.00% due 11/18/03+ .......................... 35,000,000 34,953,333 1.00% due 10/03/03 ........................... 25,000,000 24,998,611 1.04% due 10/08/03 ........................... 25,000,000 24,994,945 0.98% due 10/10/03 ........................... 25,000,000 24,993,875 1.01% due 10/24/03 ........................... 25,000,000 24,983,868 + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10.
See Notes to Financial Statements. 34 U.S. GOVERNMENT MONEY MARKET FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 --------------------------------------------------------------------------------
MARKET FACE VALUE AMOUNT (NOTE 1) ---------------------------------------------------------------------------------------- 1.02% due 12/03/03 ........................... $ 25,000,000 $ 24,955,375 1.04% due 12/02/03 ........................... 25,000,000 24,955,222 1.02% due 12/05/03 ........................... 25,000,000 24,953,958 1.01% due 12/17/03 ........................... 25,000,000 24,945,993 1.02% due 12/24/03 ........................... 25,000,000 24,940,500 1.03% due 01/05/04 ........................... 25,000,000 24,931,333 1.02% due 10/29/03 ........................... 23,000,000 22,981,753 1.04% due 11/05/03 ........................... 14,000,000 13,985,845 1.05% due 01/14/04 ........................... 10,000,000 9,969,375 1.03% due 10/29/03 ........................... 4,500,000 4,496,395 Freddie Mac 1.02% due 10/16/03 ........................... 25,000,000 24,989,427 1.23% due 11/07/03 ........................... 25,000,000 24,968,524 1.23% due 12/15/03 ........................... 25,000,000 24,935,938 1.31% due 12/31/03 ........................... 20,000,000 19,933,772 ------------------ TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $1,475,078,523) ........................ 1,475,078,523 ------------------ FEDERAL AGENCY BONDS 0.6% Federal Home Loan Bank Bond 1.42% due 04/21/04 ........................... 10,000,000 10,000,000 ------------------ TOTAL FEDERAL AGENCY BONDS (Cost $10,000,000) ........................... 10,000,000 ------------------ TIME DEPOSITS 0.9% Euro Time Deposits 1.03% due 10/01/03 ........................... 15,000,000 15,000,000 ------------------ TOTAL TIME DEPOSITS (Cost $15,000,000) ........................... 15,000,000 ------------------ REPURCHASE AGREEMENTS 9.2% Individual Repurchase Agreement Lehman Brothers, Inc. at 0.94% due 10/01/03 ................................. 151,994,804 151,994,804 (Secured by U.S. Treasury Note at a rate of ------------------ 2.00% and maturing 8/31/05, as collateral, with a market value of $155,047,179) TOTAL REPURCHASE AGREEMENTS (Cost $151,994,804) .......................... 151,994,804 ------------------ TOTAL INVESTMENTS 100% (Cost $1,652,073,327) ........................ $1,652,073,327 ==================
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 -------------------------------------------------------------------------------- This page intentionally left blank. 36 & 37 SEMI-ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003 --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS MEDIUS MEKROS FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ----------- ------------ ASSETS Securities at Value* (Notes 1, 2 and 6) ........ $ -- $ -- $848,415,230 $ -- $31,973,807 $107,591,972 Investments in Master Portfolio** (Note 3) ..... 218,466,205 638,422,693 -- 247,730,186 -- -- Collateral for Securities Loaned (Note 10) ..... -- -- 350,230,686 -- 5,309,643 6,823,343 Segregated Cash with Broker .................... -- -- 801,000 -- 1,813,725 10,951,530 Cash in Custodian Bank (Note 1) ................ -- 31,127 -- -- -- -- Receivable for Equity Index Swap Settlement (Note 1) -- -- -- -- 529,288 6,882,898 Receivable for Securities Sold (Note 1) ........ -- -- 3,961,965 -- 6,463,558 11,908,761 Receivable for Shares Purchased ................ 8,204,625 18,582,770 8,330,353 13,096,654 406,517 3,226,131 Investment Income Receivable (Note 1) .......... -- -- 18,659 -- 27,309 117,032 Receivable from Master Portfolio ............... 899 978 -- 433 -- -- Other Assets ................................... -- -- -- 33,838 -- -- ------------ ------------ ------------- ------------ ----------- ------------ TOTAL ASSETS ................................. 226,671,729 657,037,568 1,211,757,893 260,861,111 46,523,847 147,501,667 ------------ ------------ ------------- ------------ ----------- ------------ LIABILITIES Payable for Equity Index Swap Settlement (Note 1) .......................... -- -- -- -- -- 2,865,967 Payable for Futures Contracts Settlement (Note 1) .......................... -- -- 267,000 -- 68,570 1,081,363 Payable upon Return of Securities Loaned (Note 10) ............................. -- -- 350,230,686 -- 5,309,643 6,823,343 Payable for Securities Purchased (Note 1) ........................... 1,930,621 11,604,885 -- 7,278,981 -- -- Liability for Shares Redeemed .................. 6,206,997 6,867,133 14,154,711 5,770,960 9,588,216 24,040,555 Investment Advisory Fee Payable (Note 4) ....... -- -- 536,969 -- 35,718 154,357 Transfer Agent Fee Payable (Note 4) ............ 43,714 98,686 178,990 31,626 9,922 42,877 Distribution and Service Fee Payable (Note 4) .. 12,290 23,909 11,876 2,437 2,650 8,923 Portfolio Accounting Fee Payable (Note 4) ...... 17,486 34,119 48,294 12,650 3,969 17,132 Custody Fees Payable ........................... -- -- 23,626 -- 1,310 5,732 Other Liabilities .............................. 23,428 52,656 95,576 16,522 5,271 22,940 ------------ ------------ ------------ ------------ ----------- ------------ TOTAL LIABILITIES ............................ 8,234,536 18,681,388 365,547,728 13,113,176 15,025,269 35,063,189 ------------ ------------ ------------ ------------ ----------- ------------ NET ASSETS (NOTE 9) ............................ $218,437,193 $638,356,180 $846,210,165 $247,747,935 $31,498,578 $112,438,478 ============ ============ ============ ============ =========== ============ INVESTOR CLASS: Net Assets ..................................... $154,656,040 $545,769,855 $801,711,522 $227,671,228 N/A N/A Shares Outstanding ............................. 7,790,082 49,906,212 90,676,335 7,901,339 Net Asset Value Per Share ...................... $19.85 $10.94 $8.84 $28.81 ADVISOR CLASS: Net Assets ..................................... $42,497,469 $51,190,503 $32,440,917 $2,420,967 N/A N/A Shares Outstanding ............................. 2,198,222 4,822,355 3,767,903 84,078 Net Asset Value Per Share ...................... $19.33 $10.62 $8.61 $28.79 H CLASS: Net Assets ..................................... N/A N/A N/A N/A $24,860,254 $ 85,967,299 Shares Outstanding ............................. 1,117,639 4,347,678 Net Asset Value Per Share ...................... $22.24 $19.77 C CLASS: Net Assets ..................................... $21,283,684 $41,395,822 $12,057,726 $17,655,740 $6,638,324 $ 26,471,179 Shares Outstanding ............................. 1,101,173 3,877,874 1,403,131 630,631 303,105 1,363,999 Net Asset Value Per Share ...................... $19.33 $10.67 $8.59 $28.00 $21.90 $19.41 * THE COST OF SECURITIES AT VALUE IS $0, $0, $551,759,937, $0, $28,859,692 AND $106,253,964, RESPECTIVELY. ** THE COST OF INVESTMENT IN MASTER PORTFOLIO IS $220,725,008, $643,800,610, $0, $254,572,746, $0 AND $0, RESPECTIVELY.
See Notes to Financial Statements. 38 & 39 SEMI-ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------
U.S. U.S. LARGE-CAP LARGE-CAP GOVERNMENT GOVERNMENT JUNO EUROPE JAPAN MONEY BOND FUND FUND FUND FUND MARKET FUND ----------- ------------ ---------- ----------- -------------- ASSETS Securities at Value* (Notes 1, 2 and 6) ........ $78,838,681 $ -- $6,197,619 $65,632,341 $1,652,073,327 Investments in Master Portfolio** (Note 3) ..................................... -- 674,380,334 -- -- -- Collateral for Securities Loaned (Note 10) .................................... -- -- -- -- 160,000,000 Segregated Cash with Broker .................... 481,500 -- 1,477,861 8,907,109 -- Receivable for Equity Index Swap Settlement (Note 1) .......................... -- -- -- 841,349 -- Receivable for Futures Contracts Settlement (Note 1) .......................... 405,804 -- 2,250 -- -- Receivable for Securities Sold (Note 1) ........ 4,725,068 -- -- -- -- Receivable for Shares Purchased ................ 4,397,897 23,089,913 500,524 1,268,556 171,582,519 Investment Income Receivable (Note 1) .......... 398,294 -- 31 273 76,644 Receivable from Master Portfolio ............... -- 102 -- -- -- ----------- ------------ ---------- ----------- -------------- TOTAL ASSETS ................................. 89,247,244 697,470,349 8,178,285 76,649,628 1,983,732,490 ----------- ------------ ---------- ----------- -------------- LIABILITIES Payable for Equity Index Swap Settlement (Note 1) .......................... -- -- 161,301 -- -- Payable for Futures Contracts Settlement (Note 1) .......................... -- -- -- 60,150 -- Payable upon Return of Securities Loaned (Note 10) ............................. -- -- -- -- 160,000,000 Payable for Securities Purchased (Note 1) ...... -- 15,474,521 -- -- -- Liability for Shares Redeemed .................. 10,209,507 7,404,738 1,846,683 7,987,872 84,457,990 Investment Advisory Fee Payable (Note 4) ....... 25,780 -- 6,533 58,509 644,688 Transfer Agent Fee Payable (Note 4) ............ 10,312 136,258 1,815 16,252 250,649 Distribution and Service Fee Payable (Note 4) ............................. 1,325 32,247 671 2,642 7,787 Portfolio Accounting Fee Payable (Note 4) ...... 5,156 42,149 726 6,501 63,439 Custody Fees Payable ........................... 1,701 -- 239 2,145 42,913 Dividends Payable .............................. 2,339 -- -- -- 29,126 Other Liabilities .............................. 7,023 72,788 954 8,709 173,541 ----------- ------------ ---------- ----------- -------------- TOTAL LIABILITIES ............................ 10,263,143 23,162,701 2,018,922 8,142,780 245,670,133 ----------- ------------ ---------- ----------- -------------- NET ASSETS (NOTE 9) ............................ $78,984,101 $674,307,648 $6,159,363 $68,506,848 $1,738,062,357 =========== ============ ========== =========== ============== INVESTOR CLASS: Net Assets ..................................... $56,478,350 $420,625,063 N/A N/A $1,208,017,936 Shares Outstanding ............................. 5,236,745 20,301,497 1,208,445,236 Net Asset Value Per Share ...................... $10.79 $20.72 $1.00 ADVISOR CLASS: Net Assets ..................................... $13,978,625 $13,325,845 N/A N/A $264,644,636 Shares Outstanding ............................. 1,297,114 643,713 264,900,128 Net Asset Value Per Share ...................... $10.78 $20.70 $1.00 H CLASS: Net Assets ..................................... N/A N/A $5,162,928 $67,023,588 N/A Shares Outstanding ............................. 402,596 2,458,835 Net Asset Value Per Share ...................... $12.82 $27.26 C CLASS: Net Assets ..................................... $8,527,126 $240,356,740 $996,435 $1,483,260 $215,399,719 Shares Outstanding ............................. 788,912 11,857,601 79,219 54,871 215,399,046 Net Asset Value Per Share ...................... $10.81 $20.27 $12.58 $27.03 $1.00 INSTITUTIONAL CLASS: Net Assets ..................................... N/A N/A N/A N/A $50,000,066 Shares Outstanding ............................. 50,000,000 Net Asset Value Per Share ...................... $1.00 * THE COST OF SECURITIES AT VALUE IS $74,732,288, $0, $6,197,619, $65,632,341 AND $1,652,073,327, RESPECTIVELY. ** THE COST OF INVESTMENT IN MASTER PORTFOLIO IS $0, $684,938,729, $0, $0 AND $0, RESPECTIVELY.
See Notes to Financial Statements. 40 & 41 SEMI-ANNUAL REPORT STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003 -------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS MEDIUS MEKROS FUND FUND FUND FUND FUND FUND ----------- ------------- ------------ ------------ ---------- ----------- INVESTMENT INCOME Interest (Note 1) ............................ $ -- $ -- $ 126,399 $ -- $ 39,642 $ 275,696 Interest from Securities Lending ............. -- -- 65,642 -- 217 893 Dividends, Net of Foreign Tax Withheld* (Note 1) ......................... -- 358,769 521,811 -- 178,787 397,462 ----------- ------------- ------------ ------------ ---------- ----------- Total Income ............................... -- 358,769 713,852 -- 218,646 674,051 ----------- ------------- ------------ ------------ ---------- ----------- EXPENSES Advisory Fees (Note 4) ....................... -- -- 3,079,414 -- 178,994 579,056 Transfer Agent Fees (Note 4) ................. 249,489 720,882 1,026,471 193,122 49,720 160,849 Distribution & Service Fees: (Note 4) Advisor Class .............................. 85,524 123,226 81,185 740 -- -- H Class .................................... -- -- -- -- 41,564 131,349 C Class .................................... 97,677 146,522 51,501 35,128 32,624 118,001 Audit and Outside Services ................... 30,466 85,772 109,824 23,439 5,023 9,969 Accounting Fees (Note 4) ..................... 99,796 236,224 291,838 77,249 19,888 64,320 Registration Fees ............................ 45,156 130,228 171,894 35,507 8,192 19,156 Trustees' Fees ............................... 3,651 10,926 14,701 2,971 746 1,833 Printing Expenses ............................ 27,277 89,029 115,997 23,877 5,529 16,577 Miscellaneous ................................ (14,426) (52,963) 112,574 (13,984) 6,301 38,439 ----------- ------------- ------------ ------------ ---------- ----------- Total Expenses ............................. 624,610 1,489,846 5,055,399 378,049 348,581 1,139,549 ----------- ------------- ------------ ------------ ---------- ----------- Net Investment Loss .......................... (624,610) (1,131,077) (4,341,547) (378,049) (129,935) (465,498) ----------- ------------- ------------ ------------ ---------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities ........................ 43,118,652 (97,815,867) 20,982,313 (43,451,956) 2,119,424 11,473,045 Equity Index Swaps ........................... -- -- -- -- 2,008,545 12,315,794 Futures Contracts ............................ -- -- 5,351,095 -- 1,390,362 9,170,290 ----------- ------------- ------------ ------------ ---------- ----------- Total Net Realized Gain (Loss) ............. 43,118,652 (97,815,867) 26,333,408 (43,451,956) 5,518,331 32,959,129 ----------- ------------- ------------ ------------ ---------- ----------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities ........................ 513,786 (16,405,466) 151,477,385 (2,576,754) 2,551,614 694,031 Equity Index Swaps ........................... -- -- -- -- 592,642 1,515,189 Futures Contracts ............................ -- -- 854,528 -- (167,151) (2,805,735) ----------- ------------- ------------ ------------ ---------- ----------- Net Change in Unrealized Appreciation (Depreciation) ............................ 513,786 (16,405,466) 152,331,913 (2,576,754) 2,977,105 (596,515) ----------- ------------- ------------ ------------ ---------- ----------- Net Gain (Loss) on Investments ............. 43,632,438 (114,221,333) 178,665,321 (46,028,710) 8,495,436 32,362,614 ----------- ------------- ------------ ------------ ---------- ----------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ..................... $43,007,828 $(115,352,410) $174,323,774 $(46,406,759) $8,365,501 $31,897,116 =========== ============= ============ ============ ========== =========== * NET OF FOREIGN TAX WITHHELD OF $0, $0, $4,205, $0, $0, AND $162, RESPECTIVELY.
See Notes to Financial Statements. 42 & 43 SEMI-ANNUAL REPORT STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED) Period Ended September 30, 2003 --------------------------------------------------------------------------------
U.S. U.S. LARGE-CAP LARGE-CAP GOVERNMENT GOVERNMENT JUNO EUROPE JAPAN MONEY BOND FUND FUND FUND FUND MARKET FUND ---------- ------------ ---------- ---------- ---------- INVESTMENT INCOME Interest (Note 1) ............................ $1,153,041 $ -- $ 85,694 $ 141,188 $9,238,194 Interest from Securities Lending ............. -- -- -- -- 18,452 ---------- ------------ ---------- ---------- ---------- Total Income ............................... 1,153,041 -- 85,694 141,188 9,256,646 ---------- ------------ ---------- ---------- ---------- EXPENSES Advisory Fees (Note 4) ....................... 120,900 -- 73,006 133,497 4,149,965 Transfer Agent Fees (Note 4) ................. 48,360 570,710 20,279 37,083 1,659,986 Distribution & Service Fees: (Note 4) Advisor Class .............................. 1,859 5,673 -- -- 624,274 H Class .................................... -- -- 19,300 36,230 -- C Class .................................... 20,795 722,005 3,918 3,409 916,889 Audit and Outside Services ................... 6,764 21,251 1,537 1,781 231,988 Accounting Fees (Note 4) ..................... 24,180 190,255 8,112 14,833 418,211 Registration Fees ............................ 10,392 53,742 2,982 3,687 359,049 Trustees' Fees ............................... 750 6,039 241 407 30,584 Printing Expenses ............................ 7,877 68,003 1,948 3,594 241,301 Miscellaneous ................................ 6,089 78,924 3,240 11,819 191,357 ---------- ------------ ---------- ---------- ---------- Total Expenses ............................. 247,966 1,716,602 134,563 246,340 8,823,604 ---------- ------------ ---------- ---------- ---------- Less Institutional Class Expenses Reimbursed by Advisor (Note 4) ............. -- -- -- -- (24,197) Less Expenses Waived by Servicer (Note 4) Institutional Class ........................ -- -- -- -- (75,226) Less Expenses Waived by Distributors (Note 4) Advisor Class .............................. -- -- -- -- (329,005) C Class .................................... -- -- -- -- (701,602) ---------- ------------ ---------- ---------- ---------- Total Reimbursed/Waived Expenses ........... -- -- -- -- (1,130,030) ---------- ------------ ---------- ---------- ---------- Net Expenses ................................. 247,966 1,716,602 134,563 246,340 7,693,574 ---------- ------------ ---------- ---------- ---------- Net Investment Income (Loss) ................... 905,075 (1,716,602) (48,869) (105,152) 1,563,072 ---------- ------------ ---------- ---------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities ........................ (531,231) 4,801,363 -- -- 1,727 Equity Index Swaps ........................... -- -- 3,440,304 2,975,785 -- Futures Contracts ............................ (233,229) -- (28,156) 87,913 -- ---------- ------------ ---------- ---------- ---------- Total Net Realized Gain (Loss) ............. (764,460) 4,801,363 3,412,148 3,063,698 1,727 ---------- ------------ ---------- ---------- ---------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities ........................ 1,258,943 (11,184,367) -- -- -- Equity Index Swaps ........................... -- -- (215,347) 1,462,102 -- Futures Contracts ............................ 669,271 -- 15,106 (10,530) -- ---------- ------------ ---------- ---------- ---------- Net Change in Unrealized Appreciation (Depreciation) ................ 1,928,214 (11,184,367) (200,241) 1,451,572 -- ---------- ------------ ---------- ---------- ---------- Net Gain (Loss) on Investments ............. 1,163,754 (6,383,004) 3,211,907 4,515,270 1,727 ---------- ------------ ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ..................... $2,068,829 $ (8,099,606) $3,163,038 $4,410,118 $1,564,799 ========== ============ ========== ========== ==========
See Notes to Financial Statements. 44 & 45 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
NOVA FUND URSA FUND -------------------------- -------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 ------------ ------------ ------------ ------------ FROM OPERATIONS Net Investment Income (Loss) ................ $ (624,610) $ 541,943 $ (1,131,077) $ 1,030 Net Realized Gain (Loss) on Investments, Options, Swaps and Futures ................ 43,118,652 (83,894,182) (97,815,867) 101,067,765 Net Change in Unrealized Appreciation (Depreciation) on Investments, Options, Swaps and Futures ................ 513,786 (31,004,311) (16,405,466) (35,596,840) ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets from Operations ................ 43,007,828 (114,356,550) (115,352,410) 65,471,955 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class ............................ -- -- -- (2,899,882) Advisor Class ............................. -- -- -- (132,734) H Class ................................... -- -- -- -- C Class ................................... -- -- -- (72,651) ------------ ------------ ------------ ------------ Total Distributions to Shareholders ........... -- -- -- (3,105,267) ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 8) ............ 4,720,863 (6,916,336) 224,883,017 237,917,856 ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets ..... 47,728,691 (121,272,886) 109,530,607 300,284,544 NET ASSETS--BEGINNING OF PERIOd ............. 170,708,502 291,981,388 528,825,573 228,541,029 ------------ ------------ ------------ ------------ NET ASSETS--END OF PERIOD (NOTE 9) .......... $218,437,193 $170,708,502 $638,356,180 $528,825,573 ============ ============ ============ ============
OTC FUND ARKTOS FUND -------------------------- -------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 ------------ ------------ ------------- ------------ FROM OPERATIONS Net Investment Income (Loss) ................ $ (4,341,547) $ (5,902,843) $ (378,049) $ 27,246,005 Net Realized Gain (Loss) on Investments, Options, Swaps and Futures ................ 26,333,408 (135,315,592) (43,451,956) (29,420,825) Net Change in Unrealized Appreciation (Depreciation) on Investments, Options, Swaps and Futures ................ 152,331,913 (115,172,972) (2,576,754) 11,571,419 ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets from Operations ................ 174,323,774 (256,391,407) (46,406,759) 9,396,599 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class ............................ -- -- -- (4,795,888) Advisor Class ............................. -- -- -- -- H Class ................................... -- -- -- -- C Class ................................... -- -- -- (79,729) ------------ ------------ ------------ ------------ Total Distributions to Shareholders ........... -- -- -- (4,875,617) ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 8) ............ (34,282,516) 154,541,514 145,066,021 28,667,412 ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets ..... 140,041,258 (101,849,893) 98,659,262 33,188,394 NET ASSETS--BEGINNING OF PERIOd ............. 706,168,907 808,018,800 149,088,673 115,900,279 ------------ ------------ ------------ ------------ NET ASSETS--END OF PERIOD (NOTE 9) .......... $846,210,165 $706,168,907 $247,747,935 $149,088,673 ============ ============ ============ ============ + UNAUDITED.
See Notes to Financial Statements. 46 & 47 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) --------------------------------------------------------------------------------
MEDIUS FUND MEKROS FUND ------------------------- ------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 ----------- ------------ ------------ ------------ FROM OPERATIONS Net Investment Loss .......................... $ (129,935) $ (146,740) $ (465,498) $ (187,830) Net Realized Gain (Loss) on Investments, Options, Swaps and Futures ................. 5,518,331 (22,901,268) 32,959,129 (30,167,927) Net Change in Unrealized Appreciation (Depreciation) on Investments, Options, Swaps and Futures ................. 2,977,105 (4,636,758) (596,515) (9,847,041) ----------- ------------ ------------ ------------ Net Increase (Decrease) in Net Assets from Operations ..................... 8,365,501 (27,684,766) 31,897,116 (40,202,798) ----------- ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class ............................. -- -- -- -- Advisor Class .............................. -- -- -- -- H Class .................................... -- (171,769) -- -- C Class .................................... -- (19,802) -- -- Realized Gain on Investment Investor Class ............................. -- -- -- -- Advisor Class .............................. -- -- -- -- H Class .................................... -- -- -- (173,942) C Class .................................... -- -- -- (9,606) ----------- ------------ ------------ ------------ Total Distributions to Shareholders ............ -- (191,571) -- (183,548) ----------- ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 8) ............. 2,888,855 (69,789,373) 34,910,665 (54,632,052) ----------- ------------ ------------ ------------ Net Increase (Decrease) in Net Assets ........ 11,254,356 (97,665,710) 66,807,781 (95,018,398) NET ASSETS--BEGINNING OF PERIOD ................ 20,244,222 117,909,932 45,630,697 140,649,095 ----------- ------------ ------------ ------------ NET ASSETS--END OF PERIOD (NOTE 9) ............. $31,498,578 $ 20,244,222 $112,438,478 $ 45,630,697 =========== ============ ============ ============
U.S. GOVERNMENT BOND FUND JUNO FUND ------------------------- --------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 ------------ ----------- ------------ ------------- FROM OPERATIONS Net Investment Income (Loss) ................. $ 905,075 $ 2,064,223 $ (1,716,602) $ (497,831) Net Realized Gain (Loss) on Investments, Options, Swaps and Futures ................. (764,460) (2,185,716) 4,801,363 (9,220,393) Net Change in Unrealized Appreciation (Depreciation) on Investments, Options, Swaps and Futures ................. 1,928,214 3,013,992 (11,184,367) (1,478,617) ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets from Operations ..................... 2,068,829 2,892,499 (8,099,606) (11,196,841) ----------- ----------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class ............................. (833,498) (2,023,746) -- (59,275) Advisor Class .............................. (11,832) -- -- -- H Class .................................... -- -- -- -- C Class .................................... (59,745) (40,477) -- (10,152) Realized Gain on Investment Investor Class ............................. -- -- -- -- Advisor Class .............................. -- -- -- -- H Class .................................... -- -- -- -- C Class .................................... -- -- -- -- ----------- ----------- ------------ ------------ Total Distributions to Shareholders ............ (905,075) (2,064,223) -- (69,427) ----------- ----------- ------------ ------------ NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 8) ............. 24,287,407 38,357,887 492,480,017 168,023,827 ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets ........ 25,451,161 39,186,163 484,380,411 156,757,559 NET ASSETS--BEGINNING OF PERIOD ................ 53,532,940 14,346,777 189,927,237 33,169,678 ----------- ----------- ------------ ------------ NET ASSETS--END OF PERIOD (NOTE 9) ............. $78,984,101 $53,532,940 $674,307,648 $189,927,237 =========== =========== ============ ============ + UNAUDITED.
See Notes to Financial Statements. 48 & 49 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED) --------------------------------------------------------------------------------
LARGE-CAP LARGE-CAP U.S. GOVERNMENT EUROPE FUND JAPAN FUND MONEY MARKET FUND ------------------------ ------------------------- ----------------------------- PERIOD YEAR PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 2003+ 2003 ----------- ----------- ----------- ------------ -------------- -------------- FROM OPERATIONS Net Investment Income (Loss) ............... $ (48,869) $ (21,906) $ (105,152) $ (10,637) $ 1,563,072 $ 9,520,248 Net Realized Gain (Loss) on Investments, Swaps and Futures ........... 3,412,148 (8,261,767) 3,063,698 (9,194,122) 1,727 -- Net Change in Unrealized Appreciation (Depreciation) on Investments, Swaps and Futures ........................ (200,241) 181,642 1,451,572 1,552,367 -- -- ----------- ----------- ----------- ------------ -------------- -------------- Net Increase (Decrease) in Net Assets from Operations ................... 3,163,038 (8,102,031) 4,410,118 (7,652,392) 1,564,799 9,520,248 ----------- ----------- ----------- ------------ -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class ........................... -- -- -- -- (1,378,682) (8,203,812) Advisor Class ............................ -- -- -- -- (7,341) (1,050,597) H Class .................................. -- -- -- -- -- -- C Class .................................. -- -- -- -- (5,315) (82,113) Institutional Class ...................... -- -- -- -- (171,734) (183,726) ----------- ----------- ----------- ------------ -------------- -------------- Total Distributions to Shareholders ........ -- -- -- -- (1,563,072) (9,520,248) ----------- ----------- ----------- ------------ -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 8) ........... (3,658,910) 4,944,471 61,404,849 (13,540,916) 70,118,503 269,232,701 ----------- ----------- ----------- ------------ -------------- -------------- Net Increase (Decrease) in Net Assets ...... (495,872) (3,157,560) 65,814,967 (21,193,308) 70,120,230 269,232,701 NET ASSETS--BEGINNING OF PERIOD .............. 6,655,235 9,812,795 2,691,881 23,885,189 1,667,942,127 1,398,709,426 ----------- ----------- ----------- ------------ -------------- -------------- NET ASSETS--END OF PERIOD (NOTE 9) ........... $ 6,159,363 $ 6,655,235 $68,506,848 $ 2,691,881 $1,738,062,357 $1,667,942,127 =========== =========== =========== ============ ============== ============== + UNAUDITED.
See Notes to Financial Statements. 50 & 51 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS --------------------------------- ---------------------------------- NOVA FUND NOVA FUND --------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999 ---------- ---------- ---------- --------- ---------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $15.54 $25.56 $26.85 $41.93 $34.87 $29.82 ---------- ---------- ---------- --------- ---------- --------- Net Investment Income (Loss)+ ........... (.04) .08 .12 .33 .47 .45 Net Realized and Unrealized Gains (Losses) on Securities ................ 4.35 (10.10) (1.28) (15.41) 6.60 5.01 ---------- ---------- ---------- --------- ---------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....... 4.31 (10.02) (1.16) (15.08) 7.07 5.46 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................. -- -- (.13) -- (.01) (.41) ---------- ---------- ---------- --------- ---------- --------- Net Increase (Decrease) in Net Asset Value ....................... 4.31 (10.02) (1.29) (15.08) 7.06 5.05 ---------- ---------- ---------- --------- ---------- --------- NET ASSET VALUE-- END OF PERIOD ......................... $19.85 $15.54 $25.56 $26.85 $41.93 $34.87 ========== ========== ========== ========= ========== ========= TOTAL INVESTMENT RETURN ................. 27.73% (39.20)% (4.36)% (35.96)% 20.29% 18.54% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 1.22%*+++ 1.27%+++ 1.16%+++ 1.34% 1.18% 1.19% Net Expenses ............................ 1.22%*+++ 1.27%+++ 1.16%+++ 1.33% 1.18% 1.19% Net Investment Income (Loss) ............ (0.44)%* 0.44% 0.44% 0.89% 1.26% 1.47% SUPPLEMENTARY DATA: Portfolio Turnover Rate** ............... 198% 603% 401% 117% 311% 445% Net Assets, End of Period (000's omitted) ................ $154,656 $130,951 $222,251 $251,333 $748,147 $655,275 * ANNUALIZED. ** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED. +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 52 & 53 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS --------------------------------- ---------------------------------- URSA FUND URSA FUND --------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999 ---------- ---------- ---------- --------- ---------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $13.06 $10.45 $10.43 $7.68 $8.66 $9.92 ---------- ---------- ---------- --------- ---------- --------- Net Investment Income (Loss)+ ........... (.02) .01 .16 .40 .32 .25 Net Realized and Unrealized Gains (Losses) on Securities ................ (2.10) 2.67 (.10) 2.41 (1.24) (1.48) ---------- ---------- ---------- --------- ---------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. (2.12) 2.68 .06 2.81 (.92) (1.23) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................. -- (.07) (.04) (.06) (.06) (.03) ---------- ---------- ---------- --------- ---------- --------- Net Increase (Decrease) in Net Asset Value ....................... (2.12) 2.61 .02 2.75 (.98) (1.26) ---------- ---------- ---------- --------- ---------- --------- NET ASSET VALUE-- END OF PERIOD ......................... $10.94 $13.06 $10.45 $10.43 $7.68 $8.66 ========== ========== ========== ========= ========== ========= TOTAL INVESTMENT RETURN ................. (16.23)% 25.65% 0.60% 36.68% (10.64)% (12.47)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 1.35%*+++ 1.41%+++ 1.31%+++ 1.37%+++ 1.32% 1.39% Net Expenses ............................ 1.35%*+++ 1.41%+++ 1.31%+++ 1.37%+++ 1.31% 1.38% Net Investment Income (Loss) ............ (0.30)%* 0.06% 1.56% 4.69% 3.81% 3.29% SUPPLEMENTARY DATA: Net Assets, End of Period (000's omitted) $545,770 $471,600 $214,498 $222,939 $288,218 $482,340 * ANNUALIZED + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 54 & 55 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS ----------------------------------- ----------------------------------- OTC FUND OTC FUND ----------------------------------- ----------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001 2000++ 1999++ ---------- ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................... $7.02 $10.16 $11.19 $32.40 $15.90 $9.23 ---------- ---------- ---------- ---------- ---------- ---------- Net Investment Loss+ ..................... (.04) (.08) (.11) (.24) (.22) (.12) Net Realized and Unrealized Gains (Losses) on Securities ................. 1.86 (3.06) (.92) (20.80) 16.88 6.88 ---------- ---------- ---------- ---------- ---------- ---------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........ 1.82 (3.14) (1.03) (21.04) 16.66 6.76 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Realized Capital Gains ............. -- -- -- (.17) (.16) (.09) ---------- ---------- ---------- ---------- ---------- ---------- Net Increase (Decrease) in Net Asset Value ........................ 1.82 (3.14) (1.03) (21.21) 16.50 6.67 ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE-- END OF PERIOD .......................... $8.84 $7.02 $10.16 $11.19 $32.40 $15.90 ========== ========== ========== ========== ========== ========== TOTAL INVESTMENT RETURN .................. 25.93% (30.91)% (9.20)% (65.19)% 105.32% 73.73% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................... 1.20%* 1.27% 1.08% 1.16% 1.15% 1.15% Net Expenses ............................. 1.20%* 1.27% 1.08% 1.16% 1.15% 1.15% Net Investment Loss ...................... (1.02)%* (1.08)% (0.96)% (1.01)% (1.01)% (0.97)% SUPPLEMENTARY DATA: Portfolio Turnover Rate** ................ 74% 180% 109% 228% 385% 773% Net Assets, End of Period (000's omitted) ........................ $801,712 $653,999 $783,637 $1,043,848 $3,762,540 $1,277,571 * ANNUALIZED ** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ PER SHARE AMOUNTS FOR THE YEAR MARCH 31, 1999 AND MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 3:1 STOCK SPLIT EFFECTIVE APRIL 14, 2000. +++ UNAUDITED
See Notes to Financial Statements. 56 & 57 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS ------------------------------------- ---------------------------------- ARKTOS FUND ARKTOS FUND ------------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001 2000++ 1999*++ ------------- --------- --------- --------- --------- ---------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ... $37.79 $32.29 $35.76 $17.45 $40.20 $75.00 --------- --------- --------- --------- --------- ---------- Net Investment Income (Loss)+ .......... (.07) 7.34 1.01 1.08 .75 .65 Net Realized and Unrealized Gains (Losses) on Securities ............... (8.91) (.70) (4.19) 17.23 (23.40) (35.40) --------- --------- --------- --------- --------- ---------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... (8.98) 6.64 (3.18) 18.31 (22.65) (34.75) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ -- (1.14) (.29) -- (.10) (.05) --------- --------- --------- --------- --------- ---------- Net Increase (Decrease) in Net Asset Value ...................... (8.98) 5.50 (3.47) 18.31 (22.75) (34.80) --------- --------- --------- --------- --------- ---------- NET ASSET VALUE-- END OF PERIOD ........................ $28.81 $37.79 $32.29 $35.76 $17.45 $40.20 ========= ========= ========= ========= ========= ========== TOTAL INVESTMENT RETURN ................ (23.76)% 20.39% (8.84)% 104.93% (56.39)% (46.35)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.38%**++++ 1.42%++++ 1.35%++++ 1.34%++++ 1.46% 1.38%** Net Expenses ........................... 1.38%**++++ 1.42%++++ 1.35%++++ 1.33%++++ 1.46% 1.37%** Net Investment Income (Loss) ........... (0.44)%** 18.11% 3.16% 6.27% 2.67% 2.20%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. -- -- -- 1,788% 1,157% 1,332% Net Assets, End of Period (000's omitted) ............... $227,671 $146,416 $113,904 $79,028 $103,160 $118,622 * SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 3, 1998 ** ANNUALIZED *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. FOR PERIODS AFTER MARCH 31, 2000, PORTFOLIO TURNOVER IS CALCULATED ONLY FOR THE ARKTOS MASTER PORTFOLIO. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 AND MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000. +++ UNAUDITED ++++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 58 & 59 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS ------------------------------------ ---------------------------------- U.S. GOVERNMENT BOND FUND U.S. GOVERNMENT BOND FUND ------------------------------------ ---------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999 ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................... $10.95 $9.12 $9.82 $9.34 $10.05 $10.04 --------- --------- --------- --------- --------- --------- Net Investment Income+ ................... .20 .41 .43 .42 .46 .42 Net Realized and Unrealized Gains (Losses) on Securities ................. (.16) 1.83 (.70) .48 (.71) .02 --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations .............. .04 2.24 (.27) .90 (.25) .44 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .................. (.20) (.41) (.43) (.42) (.46) (.42) Net Realized Capital Gain .............. -- -- -- -- -- (.01) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........................ (.16) 1.83 (.70) .48 (.71) .01 --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD .......................... $10.79 $10.95 $9.12 $9.82 $9.34 $10.05 ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN .................. 0.44% 24.93% (2.88)% 9.81% (2.26)% 4.24% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................... 0.93%* 0.97% 0.88% 0.97% 0.93% 0.97% Net Expenses ............................. 0.93%* 0.97% 0.88% 0.96% 0.92% 0.96% Net Investment Income .................... 3.83%* 4.00% 4.39% 4.38% 5.01% 3.88% SUPPLEMENTARY DATA: Portfolio Turnover Rate** ................ 653% 2,404% 860% 1,107% 890% 1,339% Net Assets, End of Period (000's omitted) ................. $56,478 $51,370 $14,138 $80,686 $28,105 $27,623 * ANNUALIZED ** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED
See Notes to Financial Statements. 60 & 61 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS ------------------------------------ ---------------------------------- JUNO FUND JUNO FUND ------------------------------------ ---------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002++ 2001++ 2000++ 1999++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ..................... $21.23 $26.40 $25.59 $27.00 $26.10 $25.95 --------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ............. (.05) (.04) .27 1.23 .93 .81 Net Realized and Unrealized Gains (Losses) on Securities .................. (.46) (5.13) .54 (2.64) .12 (.60) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............... (.51) (5.17) .81 (1.41) 1.05 .21 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................... -- -- -- -- (.15) (.06) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ......................... (.51) (5.17) .81 (1.41) .90 .15 --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................... $20.72 $21.23 $26.40 $25.59 $27.00 $26.10 ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................... (2.40)% (19.53)% 3.17% (5.22)% 3.97% 0.78% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ............................ 1.36%*++++ 1.41%++++ 1.41%++++ 1.33%++++ 1.47% 1.57% Net Expenses .............................. 1.36%*++++ 1.41%++++ 1.41%++++ 1.33%++++ 1.47% 1.56% Net Investment Income (Loss) .............. (0.43)%* (0.45)% 1.12% 4.61% 3.39% 3.25% SUPPLEMENTARY DATA: Portfolio Turnover Rate** ................. 160% -- -- -- -- -- Net Assets, End of Period (000's omitted) .................. $420,625 $128,958 $32,293 $10,745 $9,941 $12,789 * ANNUALIZED ** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ PER SHARE AMOUNTS FOR THE YEARS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2002 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE FEBRUARY 10, 2003. +++ UNAUDITED ++++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 62 & 63 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS ------------------------------------- ---------------------------------- U.S. GOVERNMENT U.S. GOVERNMENT MONEY MARKET FUND MONEY MARKET FUND ------------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999 ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ---------- --------- --------- --------- --------- --------- Net Investment Income+ .................. --s .01 .02 .05 .04 .04 ---------- --------- --------- --------- --------- --------- Net Increase in Net Asset Value Resulting from Operations ............. -- .01 .02 .05 .04 .04 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................. --s (.01) (.02) (.05) (.04) (.04) ---------- --------- --------- --------- --------- --------- Net Increase in Net Asset Value ......... -- -- -- -- -- -- ---------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ......................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ========== ========= ========= ========== ========= ========= TOTAL INVESTMENT RETURN ................. 0.12% 0.71% 2.35% 5.48% 4.48% 4.55% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 0.88%* 0.92% 0.85% 0.85% 0.89% 0.84% Net Expenses ............................ 0.88%* 0.92% 0.85% 0.85% 0.88% 0.83% Net Investment Income ................... 0.24%* 0.71% 2.23% 5.38% 4.36% 4.37% SUPPLEMENTARY DATA: Net Assets, End of Period (000's omitted) ................ $1,208,018 $1,218,676 $979,433 $948,275 $686,198 $949,802 * ANNUALIZED + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED S LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.0012
See Notes to Financial Statements. 64 & 65 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS ------------------------------------- ---------------------------------- NOVA FUND NOVA FUND ------------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $15.17 $25.11 $26.52 $41.63 $34.78 $26.91 --------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ .......... (.08) (.03) (.01) .16 .31 (.11) Net Realized and Unrealized Gains (Losses) on Securities ............... 4.24 (9.91) (1.27) (15.27) 6.55 8.39 --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...... 4.16 (9.94) (1.28) (15.11) 6.86 8.28 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ -- -- (.13) -- (.01) -- Net Realized Capital Gain ............ -- -- -- -- -- (.41) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...................... 4.16 (9.94) (1.41) (15.11) 6.85 7.87 --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $19.33 $15.17 $25.11 $26.52 $41.63 $34.78 ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................ 27.42% (39.59)% (4.87)% (36.30)% 19.74% 31.03% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.69%**+++ 1.77%+++ 1.55%+++ 1.87% 1.71% 1.60%** Net Expenses ........................... 1.69%**+++ 1.77%+++ 1.55%+++ 1.87% 1.70% 1.58%** Net Investment Income (Loss) ........... (0.91)%** (0.17)% (0.02)% 0.45% 0.87% (0.70)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. 198% 603% 401% 117% 311% 445% Net Assets, End of Period (000's omitted) ............... $42,497 $27,130 $59,375 $38,184 $113,248 $36,187 * SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 15, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 66 & 67 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS ------------------------------------- ---------------------------------- URSA FUND URSA FUND ------------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................. $12.70 $10.22 $10.26 $7.61 $8.62 $10.25 --------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ......... (.04) (.06) .09 .43 .30 .21 Net Realized and Unrealized Gains (Losses) on Securities .............. (2.04) 2.61 (.09) 2.28 (1.25) (1.81) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations .......................... (2.08) 2.55 -- 2.71 (.95) (1.60) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ............... -- (.07) (.04) (.06) (.06) (.03) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ..................... (2.08) 2.48 (.04) 2.65 (1.01) (1.63) --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ....................... $10.62 $12.70 $10.22 $10.26 $7.61 $8.62 ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN ............... (16.38)% 24.95% 0.02% 35.70% (11.03)% (15.68)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................ 1.83%**+++ 1.89%+++ 1.85%+++ 1.86%+++ 1.84% 1.86%** Net Expenses .......................... 1.83%**+++ 1.89%+++ 1.85%+++ 1.86%+++ 1.83% 1.85%** Net Investment Income (Loss) .......... (0.78)%** (0.45)% 0.87% 4.92% 3.51% 2.96%** SUPPLEMENTARY DATA: Net Assets, End of Period (000's omitted) .............. $51,191 $39,686 $7,036 $2,860 $4,553 $3,073 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 5, 1998 ** ANNUALIZED + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 68 & 69 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------------------- ---------------------------------- OTC FUND OTC FUND -------------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................. $6.85 $9.97 $11.04 $32.16 $15.86 $10.17 --------- --------- --------- --------- --------- --------- Net Investment Loss+ .................. (.06) (.11) (.16) (.35) (.33) (.10) Net Realized and Unrealized Gains (Losses) on Securities .............. 1.82 (3.01) (.91) (20.60) 16.78 5.88 --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........... 1.76 (3.12) (1.07) (20.95) 16.45 5.78 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Realized Capital Gains .......... -- -- -- (.17) (.15) (.09) --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ..................... 1.76 (3.12) (1.07) (21.12) 16.30 5.69 --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ....................... $8.61 $6.85 $9.97 $11.04 $32.16 $15.86 --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ............... 25.69% (31.29)% (9.69)% (65.40)% 104.26% 57.20% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................ 1.67%** 1.76% 1.60% 1.67% 1.62% 1.49%** Net Expenses .......................... 1.67%** 1.76% 1.60% 1.66% 1.61% 1.47%** Net Investment Loss ................... (1.50)%** (1.56)% (1.47)% (1.50)% (1.47)% (1.31)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............ 74% 180% 109% 228% 385% 773% Net Assets, End of Period (000's omitted) ..................... $32,441 $43,839 $20,837 $36,836 $113,948 $6,893 * SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 22, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 AND MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 3:1 STOCK SPLIT EFFECTIVE APRIL 14, 2000. +++ UNAUDITED
See Notes to Financial Statements. 70 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ---------------------------------------- U.S. GOVERNMENT ARKTOS FUND BOND FUND JUNO FUND ------------- ------------ ------------- PERIOD PERIOD PERIOD ENDED ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003*++ 2003*++ 2003*++ ------------- ------------ ------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................. $29.97 $10.00 $22.41 ---------- --------- --------- Net Investment Income (Loss)+ ......... (.04) .05 (.03) Net Realized and Unrealized Gains (Losses) on Securities ....................... (1.14) .78 (1.68) ---------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ..... (1.18) .83 (1.71) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ............... -- (.05) -- ---------- --------- --------- Net Increase (Decrease) in Net Asset Value ..................... (1.18) .78 (1.71) ---------- --------- --------- NET ASSET VALUE-- END OF PERIOD ....................... $28.79 $10.78 $20.70 ---------- --------- --------- ---------- --------- --------- TOTAL INVESTMENT RETURN ............... (3.94)% 8.37% (7.63)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................ 1.91%**+++ 1.45%** 1.87%**+++ Net Expenses .......................... 1.91%**+++ 1.45%** 1.87%**+++ Net Investment Income (Loss) .......... (0.98)%** 3.17%** (0.94)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............ -- 653% 160% Net Assets, End of Period (000's omitted) .............. $2,421 $13,979 $13,326 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003. ** ANNUALIZED *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED. +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. SEMI-ANNUAL REPORT 71 -------------------------------------------------------------------------------- This page intentionally left blank. 72 & 73 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS ------------------------------------- ---------------------------------- U.S. GOVERNMENT MONEY MARKET FUND U.S. GOVERNMENT MONEY MARKET FUND ------------------------------------- ---------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 --------- --------- --------- --------- --------- --------- Net Investment Income+ ................. --ss.ss. --ss. .02 .05 .04 .04 --------- --------- --------- --------- --------- --------- Net Increase in Net Asset Value Resulting from Operations ............ -- -- .02 .05 .04 .04 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ --ss.ss. --ss. (.02) (.05) (.04) (.04) --------- --------- --------- --------- --------- --------- Net Increase in Net Asset Value ........ -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................ 0.00% 0.27% 1.84% 4.99% 3.94% 4.02% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.35%** 1.41% 1.32% 1.34% 1.41% 1.34%** Net Expenses ........................... 1.10%** 1.37% 1.32% 1.34% 1.40% 1.33%** Net Investment Income .................. 0.01%** 0.32% 1.87% 4.87% 3.85% 3.83%** SUPPLEMENTARY DATA: Net Assets, End of Period (000's omitted) ............... $264,645 $187,513 $371,356 $451,796 $212,181 $321,581 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ UNAUDITED SS. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.003 SS.SS. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00003
74 & 75 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
H CLASS H CLASS ------------------------------------- -------------------------------------------------- MEDIUS FUND MEKROS FUND ------------------------------------- -------------------------------------------------- PERIOD YEAR PERIOD PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002* 2003++ 2003 2002 2001* ------------- --------- --------- ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $16.04 $26.08 $25.00 $12.94 $22.61 $19.99 $25.00 ---------- --------- --------- ------------- --------- ---------- --------- Net Investment Income (Loss) + ......... (.06) (.07) (.03) (.05) (.03) .16 .42 Net Realized and Unrealized Gains (Losses) on Securities ............... 6.26 (9.86) 1.11 6.88 (9.60) 2.46 (5.43) ---------- --------- --------- ------------- --------- ---------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ 6.20 (9.93) 1.08 6.83 (9.63) 2.62 (5.01) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ -- (.11) -- -- -- -- -- Net Realized Capital Gains ........... -- -- -- -- (.04) -- -- ---------- --------- --------- ------------- --------- ---------- --------- Net Increase (Decrease) in Net Asset Value ...................... 6.20 (10.04) 1.08 6.83 (9.67) 2.62 (5.01) ---------- --------- --------- ------------- --------- ---------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $22.24 $16.04 $26.08 $19.77 $12.94 $22.61 $19.99 ========== ========= ========= ============= ========= ========== ========= TOTAL INVESTMENT RETURN ................ 38.65% (38.11)% 4.32% 52.78% (42.63)% 13.11% (20.04)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.63%** 1.69% 1.71%** 1.63%** 1.69% 1.61% 1.74%** Net Expenses ........................... 1.63%** 1.69% 1.71%** 1.63%** 1.69% 1.61% 1.73%** Net Investment Income (Loss) ........... (0.53)%** (0.32)% (0.19)%** (0.59)%** (0.20)% 0.74% 4.24%** SUPPLEMENTAL DATA: Portfolio Turnover Rate*** ............. 711% 2,322% 893% 464% 746% 714% -- Net Assets, End of Period (000's omitted) ............... $24,860 $14,634 $116,176 $85,967 $32,101 $120,045 $36,704 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 16, 2001-- MEDIUS FUND; NOVEMBER 1, 2000--MEKROS FUND. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 77 & 77 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
H CLASS H CLASS ------------------------------------ ----------- LARGE-CAP LARGE-CAP EUROPE FUND EUROPE FUND ------------------------------------ ------------ PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $9.88 $15.30 $17.72 $25.00 --------- --------- --------- --------- Net Investment Income (Loss)+ .......... (.04) (.02) .19 .83 Net Realized and Unrealized Gains (Losses) on Securities ............... 2.98 (5.40) (2.61) (8.11) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ 2.94 (5.42) (2.42) (7.28) DISTRIBUTIONS TO SHAREHOLDERS ......................... -- -- -- -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...................... 2.94 (5.42) (2.42) (7.28) --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $12.82 $9.88 $15.30 $17.72 ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................ 29.76% (35.42)% (13.66)% (29.12)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.62%** 1.68% 1.76% 2.06%** Net Expenses ........................... 1.62%** 1.68% 1.76% 2.06%** Net Investment Income (Loss) ........... (0.56)%** (0.13)% 1.18% 4.03%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. -- -- -- 350% Net Assets, End of Period (000's omitted) ............... $5,163 $4,698 $9,697 $9,977
H CLASS --------------------------------------------------- LARGE-CAP JAPAN FUND --------------------------------------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001*++ ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $19.05 $27.27 $39.12 $75.00 ------------- --------- --------- --------- Net Investment Income (Loss)+ .......... (.08) (.03) .48 2.07 Net Realized and Unrealized Gains (Losses) on Securities ............... 8.29 (8.19) (12.33) (37.95) ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ 8.21 (8.22) (11.85) (35.88) DISTRIBUTIONS TO SHAREHOLDERS ......................... -- -- -- -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...................... 8.21 (8.22) (11.85) (35.88) ------------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $27.26 $19.05 $27.27 $39.12 ============= ========= ========= ========= TOTAL INVESTMENT RETURN ................ 43.10% (30.14)% (30.29)% (47.84)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.64%** 1.69% 1.84% 1.77%** Net Expenses ........................... 1.64%** 1.69% 1.84% 1.77%** Net Investment Income (Loss) ........... (0.69)%** (0.06)% 1.44% 4.17%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. -- -- -- 699% Net Assets, End of Period (000's omitted) ............... $67,024 $2,683 $23,873 $14,606 * SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000-- LARGE-CAP EUROPE FUND AND LARGE-CAP JAPAN FUND. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 78 & 79 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS ------------------------------------- --------- NOVA FUND NOVA FUND ------------------------------------- --------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $15.20 $25.28 $26.84 $27.18 --------- --------- --------- --------- Net Investment Loss+ ................... (.14) (.08) (.18) (.01) Net Realized and Unrealized Gains (Losses) on Securities ............... 4.27 (10.00) (1.25) (.33) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ 4.13 (10.08) (1.43) (.34) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ -- -- (.13) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...................... 4.13 (10.08) (1.56) (.34) --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $19.33 $15.20 $25.28 $26.84 ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................ 27.17% (39.87)% (5.37)% (1.25)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 2.22%**+++ 2.28%+++ 2.27%+++ 1.86%** Net Expenses ........................... 2.22%**+++ 2.28%+++ 2.27%+++ 1.77%** Net Investment Loss .................... (1.44)%** (0.46)% (0.72)% (0.98)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. 198% 603% 401% 117% Net Assets, End of Period (000's omitted) ............... $21,284 $12,627 $10,355 $111
C CLASS ------------------------------------------------ URSA FUND ------------------------------------------------ PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $12.80 $10.35 $10.43 $10.29 --------- --------- --------- --------- Net Investment Income (Loss)+ .......... (.07) (.12) (.03) .01 Net Realized and Unrealized Gains (Losses) on Securities ............... (2.06) 2.64 (.01) .13 --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ (2.13) 2.52 (.04) .14 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ -- (.07) (.04) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...................... (2.13) 2.45 (.08) .14 --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $10.67 $12.80 $10.35 $10.43 ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................ (16.64)% 24.35% (0.36)% 1.36% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 2.36%**+++ 2.40%+++ 2.47%+++ 2.15%**+++ Net Expenses ........................... 2.36%**+++ 2.40%+++ 2.47%+++ 2.15%**+++ Net Investment Income (Loss) ........... (1.33)%** (0.97)% (0.34)% 3.04%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. -- -- -- -- Net Assets, End of Period (000's omitted) ............... $41,396 $17,540 $7,007 $35 * SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 14, 2001--NOVA FUND; MARCH 15, 2001--URSA FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 80 & 81 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS ------------------------------------- ---------- OTC FUND OTC FUND ------------------------------------- ---------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................. $6.86 $10.03 $11.20 $11.95 ------------- --------- --------- --------- Net Investment Loss+ .................. (.08) (.14) (.21) -- Net Realized and Unrealized Gains (Losses) on Securities .............. 1.81 (3.03) (.96) (.75) ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........... 1.73 (3.17) (1.17) (.75) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ............... -- -- -- -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ..................... 1.73 (3.17) (1.17) (.75) ------------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ....................... $8.59 $6.86 $10.03 $11.20 ============= ========= ========= ========= TOTAL INVESTMENT RETURN ............... 25.22% (31.61)% (10.45)% (6.28)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................ 2.20%** 2.26% 2.24% 2.37%** Net Expenses .......................... 2.20%** 2.26% 2.24% 2.09%** Net Investment Loss ................... (2.03)%** (1.98)% (2.13)% (2.03)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............ 74% 180% 109% 228% Net Assets, End of Period (000's omitted) .............. $12,058 $8,331 $3,545 $32
C CLASS ------------------------------------------------ ARKTOS FUND ------------------------------------------------ PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................. $36.92 $31.93 $35.74 $29.14 ------------- --------- --------- --------- Net Investment Income (Loss)+ ......... (.21) 3.08 .43 -- Net Realized and Unrealized Gains (Losses) on Securities .............. (8.71) 3.05 (3.95) 6.60 ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........... (8.92) 6.13 (3.52) 6.60 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ............... -- (1.14) (.29) -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ..................... (8.92) 4.99 (3.81) 6.60 ------------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ....................... $28.00 $36.92 $31.93 $35.74 ============= ========= ========= ========= TOTAL INVESTMENT RETURN ............... (24.16)% 19.02% (9.80)% 22.65% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ........................ 2.38%**+++ 2.41%+++ 2.38%+++ 2.28%**+++ Net Expenses .......................... 2.38%**+++ 2.41%+++ 2.38%+++ 2.27%**+++ Net Investment Income (Loss) .......... (1.45)%** 8.23% 1.45% 0.00%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............ -- -- -- 1,788% Net Assets, End of Period (000's omitted) .............. $17,656 $2,673 $1,996 $22 * SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001--OTC FUND; MARCH 7, 2001--ARKTOS FUND. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED. +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 82 & 83 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS ------------------------------------- ------------------------------------------------- MEDIUS FUND MEKROS FUND ------------------------------------- ------------------------------------------------- PERIOD YEAR PERIOD PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002* 2003++ 2003 2002 2001* ------------- --------- --------- ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ...................... $15.85 $26.00 $24.53 $12.75 $22.47 $19.99 $24.28 --------- --------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ .............. (.13) (.17) (.13) (.12) (.15) (.07) .17 Net Realized and Unrealized Gains (Losses) on Securities ................... 6.18 (9.87) 1.60 6.78 (9.53) 2.55 (4.46) --------- --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ................ 6.05 (10.04) 1.47 6.66 (9.68) 2.48 (4.29) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income .................... -- (.11) -- -- -- -- -- Net Realized Capital Gains ............... -- -- -- -- (.04) -- -- --------- --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value .......................... 6.05 (10.15) 1.47 6.66 (9.72) 2.48 (4.29) --------- --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ............................ $21.90 $15.85 $26.00 $19.41 $12.75 $22.47 $19.99 ========= ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN .................... 38.17% (38.65)% 5.99% 52.24% (43.12)% 12.41% (17.67)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ............................. 2.38%** 2.43% 2.44%** 2.38%** 2.43% 2.44% 2.54%** Net Expenses ............................... 2.38%** 2.43% 2.44%** 2.38%** 2.43% 2.44% 2.52%** Net Investment Income (Loss) ............... (1.25)%** (0.95)% (0.96)%** (1.31)%** (0.91)% (0.33)% 3.80%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ................. 711% 2,322% 893% 464% 746% 714% -- Net Assets, End of Period (000's omitted) ................... $6,638 $5,610 $1,734 $26,471 $13,530 $20,604 $2 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 20, 2001--MEDIUS FUND; JANUARY 23, 2001--MEKROS FUND. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT--TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 84 & 85 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS ------------------------------------ U.S. GOVERNMENT BOND FUND ------------------------------------ PERIOD YEAR PERIOD ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003 2002* ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $10.97 $9.12 $9.42 --------- --------- --------- Net Investment Income (Loss)+ .......... .15 .31 .32 Net Realized and Unrealized Gains (Losses) on Securities ............... (.16) 1.85 (.32) --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ (.01) 2.16 -- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ (.15) (.31) (.30) --------- --------- --------- Net Increase (Decrease) in N et Asset Value ....................... (.16) 1.85 (.30) --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $10.81 $10.97 $9.12 ========= ========= ========= Total Investment Return ................ (0.06)% 23.93% (0.14)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 1.93%** 1.95% 1.79%** Net Expenses ........................... 1.93%** 1.95% 1.79%** Net Investment Income (Loss) ........... 2.87%** 2.86% 3.53%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. 653% 2,404% 860% Net Assets, End of Period (000's omitted) ............... $8,527 $2,163 $209
C CLASS --------------------------------------------------- JUNO FUND --------------------------------------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002++ 2001*++ ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD .................. $20.88 $26.16 $25.59 $25.65 --------- --------- --------- --------- Net Investment Income (Loss)+ .......... (.15) (.17) .15 -- Net Realized and Unrealized Gains (Losses) on Securities ............... (.46) (5.11) .42 (.06) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............ (.61) (5.28) .57 (.06) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................ -- -- -- -- --------- --------- --------- --------- Net Increase (Decrease) in N et Asset Value ....................... (.61) (5.28) .57 (.06) --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ........................ $20.27 $20.88 $26.16 $25.59 ========= ========= ========= ========= Total Investment Return ................ (2.92)% (20.13)% 2.23% (0.23)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ......................... 2.36%**++++ 2.40%++++ 2.47%++++ 2.48%**++++ Net Expenses ........................... 2.36%**++++ 2.40%++++ 2.47%++++ 2.48%**++++ Net Investment Income (Loss) ........... (1.43)%** (1.64)% 0.55% 2.70%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ............. 160% -- -- -- Net Assets, End of Period (000's omitted) ............... $240,357 $60,969 $877 $1,702 * SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--U.S. GOVERNMENT BOND FUND; MARCH 28, 2001--JUNO FUND. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 AND MARCH 31, 2002 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE FEBRUARY 10, 2003. +++ UNAUDITED. ++++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO.
See Notes to Financial Statements. 86 & 87 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS ------------------------------------- ------------------------------------- LARGE-CAP LARGE-CAP EUROPE FUND JAPAN FUND ------------------------------------- ------------------------------------- PERIOD YEAR PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003 2002* 2003+++ 2003++ 2002*++ ------------- --------- --------- ------------ --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $9.74 $15.22 $19.09 $18.96 $27.24 $25.65 --------- --------- --------- --------- --------- --------- Net Investment Loss+ .................... (.08) (.10) (.11) (.19) (.18) (.03) Net Realized and Unrealized Gains (Losses) on Securities ................ 2.92 (5.38) (3.76) 8.26 (8.10) 1.62 --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. 2.84 (5.48) (3.87) 8.07 (8.28) 1.59 DISTRIBUTIONS TO SHAREHOLDERS ........... -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....................... 2.84 (5.48) (3.87) 8.07 (8.28) 1.59 --------- --------- --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ......................... $12.58 $9.74 $15.22 $27.03 $18.96 $27.24 ========= ========= ========= ========= ========= ========= TOTAL INVESTMENT RETURN ................. 29.16% (36.01)% (20.27)% 42.56% (30.40)% 6.20% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 2.37%** 2.45% 2.69%** 2.41%** 2.36% 2.20%** Net Expenses ............................ 2.37%** 2.45% 2.69%** 2.41%** 2.36% 2.20%** Net Investment Loss ..................... (1.36)%** (0.96)% (0.82)%** (1.49)%** (0.68)% (0.72)%** SUPPLEMENTARY DATA: Net Assets, End of Period (000's omitted) ................ $996 $1,957 $116 $1,483 $9 $12 * SINCE THE COMMENCEMENT OF OPERATIONS: MAY 10, 2001-- LARGE-CAP EUROPE FUND; MARCH 1, 2002--LARGE-CAP JAPAN FUND. ** ANNUALIZED. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 17, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 88 & 89 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS -------------------------- ---------------------- U.S. GOVERNMENT U.S. GOVERNMENT MONEY MARKET FUND MONEY MARKET FUND -------------------------- --------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE:+ NET ASSET VALUE-- BEGINNING OF PERIOD .............................. $1.00 $1.00 $1.00 $1.00 ---------- --------- --------- --------- Net Investment Income+ ............................. --ss --s .01 .02 ---------- --------- --------- --------- Net Increase in Net Asset Value Resulting from Operations ........................ -- -- .01 .02 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ............................ --ss --s (.01) (.02) ---------- --------- --------- --------- Net Increase in Net Asset Value .................... -- -- -- -- ---------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ..................... $1.00 $1.00 $1.00 $1.00 ========== ========= ========= ========= TOTAL INVESTMENT RETURN ............................ 0.00% 0.08% 1.35% 1.97% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ..................................... 1.88%** 1.91% 1.80% 1.79%** Net Expenses ....................................... 1.11%** 1.50% 1.80% 1.78%** Net Investment Income .............................. 0.01%** 0.06% 1.13% 4.31%** SUPPLEMENTARY DATA: Net Assets, End of Period (000's omitted) .......... $215,400 $201,745 $47,920 $37,514 * SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 19, 2000--U.S. GOVERNMENT MONEY MARKET FUND. ** ANNUALIZED. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED. S LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.0006 SS LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00003
See Notes to Financial Statements. 90 FINANCIAL HIGHLIGHTS (CONCLUDED) -------------------------------------------------------------------------------- INSTITUTIONAL CLASS ------------------------------ U.S. GOVERNMENT MONEY MARKET FUND ------------------------------ PERIOD PERIOD ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003* ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .......... $1.00 $1.00 ------------- --------- Net Investment Income+ ........................ --s .01 ------------- --------- Net Increase in Net Asset Value Resulting from Operations ................... -- .01 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ....................... --s (.01) ------------- --------- Net Increase in Net Asset Value ............... -- -- ------------- --------- NET ASSET VALUE--END OF PERIOD ................ $1.00 $1.00 ============= ========= TOTAL INVESTMENT RETURN ....................... 0.29% 0.63% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................ 0.88%** 0.90%** Net Expenses .................................. 0.55%** 0.55%** Net Investment Income ......................... 0.57%** 0.80%** SUPPLEMENTAL DATA: Net Assets, End of Period (000's omitted)...... $50,000 $60,008 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2002. ** ANNUALIZED. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED. S LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00287 See Notes to Financial Statements. SEMI-ANNUAL REPORT 91 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMMON STOCKS 88.1% FINANCIALS 18.4% DIVERSIFIED FINANCIALS 7.0% Citigroup, Inc. .......................... 113,800 $ 5,179,038 J.P. Morgan Chase & Co.+ ................................. 47,300 1,623,809 Freddie Mac+ ............................. 27,900 1,460,565 Merrill Lynch & Co., Inc.+ .................................. 27,000 1,445,310 Lehman Brothers Holdings, Inc.+ ........................ 16,200 1,119,096 Principal Financial Group, Inc. ............................ 28,000 867,720 Morgan Stanley ........................... 13,100 661,026 Fannie Mae+ .............................. 8,100 568,620 American Express Co. ..................... 11,400 513,684 Capital One Financial Corp.+ ................................. 8,700 496,248 MBNA Corp. ............................... 17,600 401,280 SLM Corp.+ ............................... 7,200 280,512 Goldman Sachs Group, Inc. ................................... 1,000 83,900 -------------- TOTAL DIVERSIFIED FINANCIALS 14,700,808 -------------- INSURANCE 6.0% American International Group, Inc.+ ........................... 58,700 3,386,990 Allstate Corp. ........................... 35,100 1,282,203 Prudential Financial, Inc.+ .................................. 31,600 1,180,576 John Hancock Financial Services, Inc. ................................... 30,300 1,024,140 XL Capital Ltd. .......................... 12,600 975,744 ACE Ltd. ................................. 28,500 942,780 Jefferson-Pilot Corp. .................... 19,800 878,724 Cincinnati Financial Corp. .................................. 21,800 871,128 MetLife, Inc. ............................ 26,700 748,935 Ambac Financial Group, Inc. ............................ 9,600 614,400 MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Aon Corp.+ ............................... 29,200 $ 608,820 St. Paul Cos., Inc. ...................... 4,400 162,932 -------------- TOTAL INSURANCE 12,677,372 -------------- BANKS 5.4% Bank of America Corp. .................................. 39,600 3,090,384 Wachovia Corp. ........................... 44,700 1,841,193 Washington Mutual, Inc.+ .................................. 35,700 1,405,509 FleetBoston Financial Corp. .................................. 46,400 1,398,960 U.S. Bancorp+ ............................ 55,000 1,319,450 Wells Fargo & Co.+ ....................... 18,800 968,200 Huntington Bancshares, Inc. ................................... 42,000 831,180 Golden West Financial Corp. .................................. 2,300 205,873 Bank One Corp. ........................... 4,000 154,600 -------------- TOTAL BANKS 11,215,349 -------------- TOTAL FINANCIALS 38,593,529 -------------- INFORMATION TECHNOLOGY 15.4% SOFTWARE 4.1% Microsoft Corp.+ ......................... 220,600 6,130,474 Oracle Corp.* ............................ 66,400 745,008 Intuit, Inc.*+ ........................... 8,200 395,568 Computer Associates International, Inc.+ .................................. 14,500 378,595 Veritas Software Corp.* ................................. 7,300 229,220 Symantec Corp.*+ ......................... 3,600 226,872 Citrix Systems, Inc.* .................... 7,600 167,808 Siebel Systems, Inc.* .................... 14,800 143,856 BMC Software, Inc.*+ ..................... 5,000 69,650 Adobe Systems, Inc. ...................... 1,400 54,964 Mercury Interactive Corp.* ................................. 300 13,623 -------------- TOTAL SOFTWARE 8,555,638 -------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 92 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS 4.0% International Business Machines Corp.+ ........................ 35,300 $ 3,118,049 Hewlett-Packard Co. ...................... 89,700 1,736,592 Dell, Inc.* .............................. 28,700 958,293 NCR Corp.*+ .............................. 26,900 852,461 EMC Corp./MA*+ ........................... 66,000 833,580 Sun Microsystems, Inc.* .................................. 101,700 336,627 Lexmark International, Inc.*+ ................................. 4,100 258,341 Network Appliance, Inc.* .................................. 6,700 137,551 Gateway, Inc.* ........................... 13,500 76,410 -------------- TOTAL COMPUTERS & PERIPHERALS 8,307,904 -------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS 3.5% Intel Corp. .............................. 149,300 4,107,243 Applied Materials, Inc.*+ ................................. 49,500 897,930 Analog Devices, Inc.*+ ................................. 15,200 577,904 Texas Instruments, Inc. ................................... 15,400 351,120 NVIDIA Corp.*+ ........................... 18,500 294,353 National Semiconductor Corp.*+ ................................ 8,400 271,236 Maxim Integrated Products, Inc.+ ........................ 5,700 225,150 Altera Corp.* ............................ 10,500 198,450 KLA-Tencor Corp.*+ ....................... 3,300 169,620 Xilinx, Inc.* ............................ 5,400 153,954 Novellus Systems, Inc.*+ ................................. 3,200 108,000 LSI Logic Corp.*+ ........................ 11,300 101,587 Applied Micro Circuits Corp.* ................................. 1,500 7,305 -------------- TOTAL SEMICONDUCTOR EQUIPMENT & PRODUCTS 7,463,852 -------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT 2.6% Cisco Systems, Inc.*+ .................... 166,400 $ 3,251,456 QUALCOMM, Inc.+ .......................... 20,200 841,128 Comverse Technology, Inc.*+ ................................. 23,300 348,568 Tellabs, Inc.* ........................... 45,900 311,661 Andrew Corp.*+ ........................... 23,500 288,815 Scientific-Atlanta, Inc. ................. 8,600 267,890 Corning, Inc.*+ .......................... 15,300 144,126 QLogic Corp.* ............................ 1,800 84,618 Lucent Technologies, Inc.*+ ................................. 14,900 32,184 -------------- TOTAL COMMUNICATIONS EQUIPMENT 5,570,446 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.5% Thermo Electron Corp.* ................................. 22,100 479,570 Sanmina-SCI Corp.* ....................... 27,200 263,840 Symbol Technologies, Inc. ................................... 9,900 118,305 PerkinElmer, Inc. ........................ 7,500 114,825 Solectron Corp.* ......................... 9,400 54,990 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,031,530 -------------- IT CONSULTING & SERVICES 0.4% First Data Corp.+ ........................ 9,300 371,628 Automatic Data Processing, Inc. ....................... 5,000 179,250 Unisys Corp.*+ ........................... 11,000 148,830 Concord EFS, Inc.* ....................... 8,300 113,461 Electronic Data Systems Corp.+ ................................. 2,100 42,420 SunGard Data Systems, Inc.* .................................. 1,500 39,465 -------------- TOTAL IT CONSULTING & SERVICES 895,054 -------------- INTERNET SOFTWARE & SERVICES 0.2% Yahoo!, Inc.*+ ........................... 9,500 336,110 -------------- TOTAL INTERNET SOFTWARE & SERVICES 336,110 -------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 93 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- OFFICE ELECTRONICS 0.1% Xerox Corp.*+ ............................ 25,700 $ 263,682 -------------- TOTAL OFFICE ELECTRONICS 263,682 -------------- TOTAL INFORMATION TECHNOLOGY 32,424,216 -------------- HEALTH CARE 12.0% PHARMACEUTICALS 6.8% Pfizer, Inc.+ ............................ 133,800 4,064,844 Merck & Co., Inc.+ ....................... 60,001 3,037,251 Johnson & Johnson, Inc. ................................... 44,600 2,208,592 Wyeth .................................... 28,000 1,290,800 Bristol-Myers Squibb Co. .................................... 46,000 1,180,360 Eli Lilly & Co. .......................... 11,300 671,220 Watson Pharmaceuticals, Inc.*+ ................................. 14,000 583,660 Abbott Laboratories ...................... 12,900 548,895 Forest Laboratories, Inc.*+ ................................. 9,300 478,485 King Pharmaceuticals, Inc.* .................................. 15,700 237,855 -------------- TOTAL PHARMACEUTICALS 14,301,962 -------------- HEALTH CARE PROVIDERS & SERVICES 2.6% UnitedHealth Group, Inc. ................................... 24,200 1,217,744 Quest Diagnostics, Inc.*+ ................................. 14,700 891,408 Manor Care, Inc.+ ........................ 28,900 867,000 Anthem, Inc.* ............................ 10,700 763,231 WellPoint Health Networks, Inc.* ........................ 7,200 554,976 McKesson Corp.+ .......................... 14,000 466,060 Humana, Inc.* ............................ 19,100 344,755 Tenet Healthcare Corp.*+ ................................ 7,500 108,600 Express Scripts, Inc.*+ .................. 1,600 97,840 Medco Health Solutions, Inc.* ....................... 3,700 95,941 Cardinal Health, Inc. .................... 1,300 75,907 CIGNA Corp. .............................. 800 35,720 -------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- TOTAL HEALTH CARE PROVIDERS & SERVICES $ 5,519,182 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 1.7% Becton, Dickinson & Co. .................................. 25,599 924,636 Medtronic, Inc.+ ......................... 18,000 844,560 Boston Scientific Corp.* ................................. 9,500 606,100 Biomet, Inc.+ ............................ 16,100 541,121 Bausch & Lomb, Inc.+ ..................... 10,000 441,500 C.R. Bard, Inc. 1,300 92,300 Baxter International, Inc. ................................... 3,000 87,180 St. Jude Medical, Inc.* .................. 400 21,508 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,558,905 -------------- BIOTECHNOLOGY 0.9% Amgen, Inc.*+ ............................ 20,200 1,304,314 Biogen, Inc.* ............................ 8,200 313,486 Genzyme Corp.* ........................... 6,200 286,750 -------------- TOTAL BIOTECHNOLOGY 1,904,550 -------------- TOTAL HEALTH CARE 25,284,599 -------------- CONSUMER STAPLES 10.1% FOOD & DRUG RETAILING 3.9% Wal-Mart Stores, Inc.+ ................... 98,400 5,495,640 Costco Wholesale Corp.*+ ................................ 32,400 1,006,992 SUPERVALU, Inc. .......................... 21,200 505,832 Sysco Corp.+ ............................. 13,400 438,314 Kroger Co.* .............................. 24,300 434,241 CVS Corp.+ ............................... 13,600 422,416 -------------- TOTAL FOOD & DRUG RETAILING 8,303,435 -------------- BEVERAGES 1.9% PepsiCo, Inc. ............................ 51,300 2,351,079 Coca-Cola Co. ............................ 32,400 1,391,904 Coors (Adolph)-- Class B ................................ 3,500 188,160 Anheuser-Busch Cos., Inc.+ .................................. 2,300 113,482 -------------- TOTAL BEVERAGES 4,044,625 -------------- *NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 94 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS 1.9% Procter & Gamble Co.+ ................................... 34,600 $ 3,211,572 Clorox Co. ............................... 17,100 784,377 -------------- TOTAL HOUSEHOLD PRODUCTS 3,995,949 -------------- TOBACCO 1.1% Altria Group, Inc. ....................... 50,600 2,216,280 -------------- TOTAL TOBACCO 2,216,280 -------------- FOOD PRODUCTS 0.9% Sara Lee Corp. ........................... 55,000 1,009,800 Archer-Daniels-Midland Co. .................................... 47,000 616,170 McCormick & Co., Inc. ................................... 6,400 175,488 Kellogg Co. .............................. 2,400 80,040 -------------- TOTAL FOOD PRODUCTS 1,881,498 -------------- PERSONAL PRODUCTS 0.4% Alberto-Culver Co.-- Class B ................................ 14,300 841,126 -------------- TOTAL PERSONAL PRODUCTS 841,126 -------------- TOTAL CONSUMER STAPLES 21,282,913 -------------- CONSUMER DISCRETIONARY 9.8% MEDIA 4.5% Viacom, Inc.--Class B .................... 51,900 1,987,770 Walt Disney Co.+ ......................... 77,600 1,565,192 AOL Time Warner, Inc.*+ ................................. 96,900 1,464,159 Comcast Corp.-- Class A*+ .............................. 40,600 1,253,728 Tribune Co. .............................. 22,400 1,028,160 Omnicom Group, Inc.+ .................................. 9,100 653,835 Clear Channel Communications, Inc.+ .................................. 16,300 624,290 Dow Jones & Co., Inc. .................... 9,300 440,355 MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Univision Communications, Inc.--Class A* ......................... 12,600 $ 402,318 -------------- TOTAL MEDIA 9,419,807 -------------- SPECIALTY RETAIL 2.0% Home Depot, Inc. ......................... 40,300 1,283,555 Staples, Inc.*+ .......................... 28,900 686,375 Lowe's Cos., Inc.+ ....................... 12,600 653,940 Gap, Inc.+ ............................... 24,900 426,288 Sherwin-Williams Co. ..................... 14,100 414,681 RadioShack Corp. ......................... 9,600 272,736 Limited Brands, Inc. ..................... 12,600 190,008 Best Buy Co., Inc.* ...................... 3,600 171,072 AutoNation, Inc.*+ ....................... 7,100 124,534 -------------- TOTAL SPECIALTY RETAIL 4,223,189 -------------- HOTELS RESTAURANTS & LEISURE 1.0% McDonald's Corp. ......................... 23,800 560,252 Starwood Hotels & Resorts Worldwide, Inc. ................................... 13,600 473,280 Hilton Hotels Corp.+ ..................... 27,900 452,538 Starbucks Corp.*+ ........................ 14,600 420,480 Marriott International, Inc.--Class A+ ......................... 6,300 271,089 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 2,177,639 -------------- HOUSEHOLD DURABLES 0.7% KB Home .................................. 10,400 620,464 Whirlpool Corp.+ ......................... 6,400 433,728 Centex Corp.+ ............................ 2,100 163,548 Snap-on, Inc.+ ........................... 5,900 163,135 Fortune Brands, Inc. ..................... 2,400 136,200 Cavco Industries, Inc.* .................................. 384 8,256 -------------- TOTAL HOUSEHOLD DURABLES 1,525,331 -------------- TEXTILES & APPAREL 0.6% Reebok International Ltd.+ .................................. 14,400 481,392 Nike, Inc.--Class B ...................... 6,800 413,576 Liz Claiborne, Inc. ...................... 7,100 241,755 -------------- TOTAL TEXTILES & APPAREL 1,136,723 -------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 95 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- MULTILINE RETAIL 0.4% Federated Department Stores, Inc.+ .......................... 12,600 $ 527,940 Sears Roebuck and Co.+ ................................... 5,400 236,142 Dollar General Corp. ..................... 4,800 96,000 Family Dollar Stores, Inc. ................................... 1,500 59,835 -------------- TOTAL MULTILINE RETAIL 919,917 -------------- INTERNET & CATALOG RETAIL 0.3% eBay, Inc.*+ ............................. 10,900 583,259 -------------- TOTAL INTERNET & CATALOG RETAIL 583,259 -------------- LEISURE EQUIPMENT & PRODUCTS 0.2% Hasbro, Inc. ............................. 13,600 254,048 Eastman Kodak Co.+ ....................... 6,600 138,204 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 392,252 -------------- AUTOMOBILES 0.1% Ford Motor Co.+ .......................... 9,600 103,392 -------------- TOTAL AUTOMOBILES 103,392 -------------- AUTO COMPONENTS 0.0% Dana Corp. ............................... 1,700 26,231 -------------- TOTAL AUTO COMPONENTS 26,231 -------------- TOTAL CONSUMER DISCRETIONARY 20,507,740 -------------- INDUSTRIALS 9.3% INDUSTRIAL CONGLOMERATES 3.8% General Electric Co. ..................... 195,900 5,839,779 Tyco International Ltd.+ .................................. 76,400 1,560,852 3M Co.+ .................................. 5,400 372,978 Textron, Inc. ............................ 7,700 303,765 -------------- TOTAL INDUSTRIAL CONGLOMERATES 8,077,374 -------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- MACHINERY 1.6% Parker Hannifin Corp. .................... 17,500 $ 782,250 Eaton Corp.+ ............................. 8,100 717,822 Caterpillar, Inc. ........................ 10,300 709,052 Ingersoll-Rand Co.-- Class A ................................ 6,900 368,736 Danaher Corp. ............................ 4,500 332,370 PACCAR, Inc. ............................. 4,000 298,760 Pall Corp. ............................... 1,700 38,148 Navistar International Corp.*+ ................................ 900 33,552 Cummins, Inc. ............................ 300 13,329 -------------- TOTAL MACHINERY 3,294,019 -------------- AEROSPACE & DEFENSE 1.0% United Technologies Corp. .................................. 11,400 880,992 Goodrich Corp. ........................... 14,500 351,480 General Dynamics Corp. .................................. 3,100 241,986 Rockwell Collins, Inc. ................... 9,400 237,350 Boeing Co. ............................... 6,200 212,846 Northrop Grumman Corp. .................................. 900 77,598 Honeywell International, Inc. .................... 2,600 68,510 -------------- TOTAL AEROSPACE & DEFENSE 2,070,762 -------------- COMMERCIAL SERVICES & SUPPLIES 0.6% Cendant Corp.*+ .......................... 50,900 951,321 Waste Management, Inc.+ .................................. 11,300 295,721 Monster Worldwide, Inc.*+ ................................. 2,600 65,468 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,312,510 -------------- ELECTRICAL EQUIPMENT 0.6% Rockwell Automation, Inc. ................................... 15,300 401,625 Thomas & Betts Corp.* ................................. 24,500 388,325 Cooper Industries Ltd.--Class A .......................... 7,500 360,225 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 96 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- American Power Conversion Corp. ....................... 8,900 $ 152,546 -------------- TOTAL ELECTRICAL EQUIPMENT 1,302,721 -------------- AIR FREIGHT & COURIERS 0.5% United Parcel Service, Inc.--Class B+ ......................... 10,700 682,660 FedEx Corp. .............................. 5,900 380,137 -------------- TOTAL AIR FREIGHT & COURIERS 1,062,797 -------------- ROAD & RAIL 0.5% Union Pacific Corp. ...................... 17,400 1,012,158 -------------- TOTAL ROAD & RAIL 1,012,158 -------------- TRADING COMPANIES & DISTRIBUTORS 0.4% W.W. Grainger, Inc. ...................... 16,800 798,840 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 798,840 -------------- BUILDING PRODUCTS 0.2% Masco Corp.+ ............................. 21,500 526,320 -------------- TOTAL BUILDING PRODUCTS 526,320 -------------- AIRLINES 0.1% Southwest Airlines Co. ................... 9,400 166,380 -------------- TOTAL AIRLINES 166,380 -------------- TOTAL INDUSTRIALS 19,623,881 -------------- ENERGY 5.0% OIL & GAS 4.8% Exxon Mobil Corp. ........................ 154,200 5,643,720 ConocoPhillips ........................... 27,000 1,478,250 ChevronTexaco Corp. ...................... 13,500 964,575 EOG Resources, Inc.+ ..................... 19,900 830,626 Sunoco, Inc. ............................. 19,900 800,378 Devon Energy Corp.+ ...................... 8,900 428,891 -------------- TOTAL OIL & GAS 10,146,440 -------------- ENERGY EQUIPMENT & SERVICES 0.2% Halliburton Co. .......................... 10,800 261,900 Nabors Industries Ltd.* .................................. 1,800 67,068 BJ Services Co.*+ ........................ 600 20,502 -------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- TOTAL ENERGY EQUIPMENT & SERVICES $ 349,470 -------------- TOTAL ENERGY 10,495,910 -------------- TELECOMMUNICATION SERVICES 3.1% DIVERSIFIED TELECOMMUNICATION SERVICES 2.5% SBC Communications, Inc. ................................... 61,200 1,361,700 Verizon Communications, Inc. ................................... 37,900 1,229,476 ALLTEL Corp.+ ............................ 22,600 1,047,284 Sprint Corp.-FON Group+ ................................. 68,700 1,037,370 AT&T Corp. ............................... 19,100 411,605 BellSouth Corp.+ ......................... 7,500 177,600 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 5,265,035 -------------- WIRELESS TELECOMMUNICATION SERVICES 0.6% AT&T Wireless Services, Inc.*+ ................................. 80,800 660,944 Nextel Communications, Inc.--Class A*+ ........................ 21,700 427,273 Sprint Corp.-PCS Group*+ ................................ 17,700 101,421 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 1,189,638 -------------- TOTAL TELECOMMUNICATION SERVICES 6,454,673 -------------- UTILITIES 2.5% ELECTRIC UTILITIES 1.5% Entergy Corp. ............................ 15,800 855,570 Exelon Corp. ............................. 11,200 711,200 Public Service Enterprise Group, Inc.+ .................................. 9,400 394,800 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. SEMI-ANNUAL REPORT 97 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Pinnacle West Capital Corp. .................................. 10,500 $ 372,750 FPL Group, Inc. .......................... 3,600 227,520 Dominion Resources, Inc. /VA+ .............................. 2,200 136,180 Cinergy Corp. ............................ 3,500 128,450 PG&E Corp.* .............................. 4,900 117,110 Edison International*+ ................... 5,800 110,780 TXU Corp.+ ............................... 3,600 84,816 -------------- TOTAL ELECTRIC UTILITIES 3,139,176 -------------- GAS UTILITIES 0.8% Peoples Energy Corp.+ ................................. 19,400 802,772 Sempra Energy ............................ 11,300 331,768 Kinder Morgan, Inc. ...................... 4,000 216,040 Nicor, Inc.+ ............................. 4,800 168,672 NiSource, Inc.+ .......................... 7,700 153,846 -------------- TOTAL GAS UTILITIES 1,673,098 -------------- MULTI-UTILITIES 0.2% Constellation Energy Group, Inc. ............................ 6,900 246,882 Duke Energy Corp.+ ....................... 6,200 110,422 Williams Cos., Inc.+ ..................... 10,000 94,200 AES Corp.*+ .............................. 5,300 39,326 Dynegy, Inc.-- Class A*+ .............................. 9,100 32,760 -------------- TOTAL MULTI-UTILITIES 523,590 -------------- TOTAL UTILITIES 5,335,864 -------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- MATERIALS 2.5% CHEMICALS 1.2% Monsanto Co.+ ............................ 34,300 $ 821,142 PPG Industries, Inc. ..................... 13,800 720,636 Engelhard Corp. .......................... 19,500 539,565 E.I. du Pont de Nemours & Co. .......................... 3,300 132,033 Dow Chemical Co. ......................... 3,200 104,128 Sigma-Aldrich Corp.+ ..................... 1,700 88,298 -------------- TOTAL CHEMICALS 2,405,802 -------------- METALS & MINING 0.9% Alcoa, Inc.+ ............................. 43,200 1,130,112 Freeport-McMoRan Copper & Gold, Inc.--Class B+ ......................... 14,000 463,400 Newmont Mining Corp.+ ................................. 8,700 340,083 -------------- TOTAL METALS & MINING 1,933,595 -------------- PAPER & FOREST PRODUCTS 0.3% Weyerhaeuser Co.+ ........................ 9,300 543,585 -------------- TOTAL PAPER & FOREST PRODUCTS 543,585 -------------- CONTAINERS & PACKAGING 0.1% Pactiv Corp.* ............................ 13,700 277,836 -------------- TOTAL CONTAINERS & PACKAGING 277,836 -------------- TOTAL MATERIALS 5,160,818 -------------- TOTAL COMMON STOCKS (Cost $162,866,514) ....................... 185,164,143 -------------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 10. See Notes to Financial Statements. 98 NOVA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE CONTRACTS (NOTE 1) -------------------------------------------------------------------------------- OPTIONS PURCHASED 0.2% Call Options on: December 2003 S&P 500 Index Futures Contracts, Expiring December 2003 with strike price of 600 5 $ 491,625 Put Options on: December 2003 S&P 500 Index Futures Contracts, Expiring December 2003 with strike price of 575 600 22,500 -------------- TOTAL OPTIONS PURCHASED (Cost $548,680) ............................... 514,125 -------------- FACE AMOUNT ------- REPURCHASE AGREEMENTS 11.7% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ............................ $5,482,606 5,482,606 0.94% due 10/01/03 ............................ 390,287 390,287 0.93% due 10/01/03 ............................ 5,482,606 5,482,606 0.91% due 10/01/03 ............................ 5,482,606 5,482,606 0.90% due 10/01/03 ............................ 7,740,150 7,740,150 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $24,578,255) ............................ 24,578,255 -------------- TOTAL INVESTMENTS 100% (Cost $187,993,449) ........................... $ 210,256,523 -------------- -------------- -------------------------------------------------------------------------------- UNREALIZED LOSS CONTRACTS (NOTE 1) -------------------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 S&P 500 Index Futures Contracts (Aggregate Market Value of Contracts $78,758,650) ....................... 317 $ (1,731,162) December 2003 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $62,289,763) ....................... 1,253 (1,223,878) -------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $141,048,413) $ (2,955,040) -------------- -------------- See Notes to Financial Statements. SEMI-ANNUAL REPORT 99 URSA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) -------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 71.0% Farmer Mac 0.99% due 10/01/03 ............................ $ 50,000,000 $ 50,000,000 0.98% due 10/01/03 ............................ 25,000,000 25,000,000 Federal Home Loan Bank 1.00% due 10/22/03 ............................ 100,000,000 99,941,667 1.02% due 10/24/03 ............................ 100,000,000 99,934,833 0.98% due 10/03/03 ............................ 50,000,000 49,997,278 1.02% due 11/28/03 ............................ 50,000,000 49,917,833 1.03% due 10/06/03 ............................ 25,000,000 24,996,424 1.02% due 11/26/03 ............................ 25,000,000 24,960,333 ------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $424,748,368) ........................... 424,748,368 ------------- CONTRACTS --------- OPTIONS PURCHASED 2.1% Call Options on: December 2003 S&P 500 Index Futures Contracts Expiring December 2003 with strike price of 1350 .... 2,250 -- Put Options on: December 2003 S&P 500 Index Futures Contracts Expiring December 2003 with strike price of 1300 .... 165 12,610,125 ------------- TOTAL OPTIONS PURCHASED (Cost $11,670,345) .................................. 12,610,125 ------------- FACE AMOUNT ------- REPURCHASE AGREEMENTS 26.9% Repurchase Agreement (Note 6) 0.96% due 10/01/03 ............................ $35,979,612 35,979,612 0.94% due 10/01/03 ............................ 2,561,255 2,561,255 0.93% due 10/01/03 ............................ 35,979,612 35,979,612 0.91% due 10/01/03 ............................ 35,979,612 35,979,612 0.90% due 10/01/03 ............................ 50,794,747 50,794,747 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $161,294,838) ........................... 161,294,838 ------------- TOTAL INVESTMENTS 100% (Cost $597,713,551) ........................... $ 598,653,331 ------------- ------------- See Notes to Financial Statements. 100 URSA MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) -------------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2003 S&P 500 Index Futures Contracts (Aggregate Market Value of Contracts $64,100,100) .... 258 $ 937,049 December 2003 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $530,929,500) ... 10,680 12,709,854 ------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $595,029,600) $ 13,646,903 ------------- ------------- See Notes to Financial Statements. SEMI-ANNUAL REPORT 101 ARKTOS MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) -------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 68.1% Fannie Mae 1.05% due 10/01/03 .............................. $50,000,000 $ 50,000,000 Federal Home Loan Bank 1.01% due 10/22/03 .............................. 50,000,000 49,970,542 1.04% due 11/14/03 .............................. 25,000,000 24,968,222 1.00% due 10/22/03 .............................. 20,000,000 19,988,333 ------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $144,927,097) ............................. 144,927,097 ------------- CONTRACTS --------- OPTIONS PURCHASED 0.0% Call Options on: December 2003 Nasdaq 100 Index Futures Contracts Expiring December 2003 with strike price of 2000 230 -- ------------- TOTAL OPTIONS PURCHASED (Cost $5,670) ................................... -- ------------- FACE AMOUNT ------- REPURCHASE AGREEMENTS 31.9% Repurchase Agreement (Note 6) 0.96% due 10/01/03 .............................. $15,140,454 15,140,454 0.94% due 10/01/03 .............................. 1,077,793 1,077,793 0.93% due 10/01/03 .............................. 15,140,454 15,140,454 0.91% due 10/01/03 .............................. 15,140,454 15,140,454 0.90% due 10/01/03 .............................. 21,374,759 21,374,759 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $67,873,914) .............................. 67,873,914 ------------- TOTAL INVESTMENTS 100% (Cost $212,806,681) ............................. $212,801,011 ------------- ------------- See Notes to Financial Statements. 102 ARKTOS MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) -------------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2003 Nasdaq 100 Index Futures Contracts (Aggregate Market Value of Contracts $3,134,400) .... 24 $ 369,503 December 2003 Nasdaq 100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $26,642,400) ... 1,020 139,461 ------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $29,776,800) $ 508,964 ------------- ------------- UNITS ----- EQUITY INDEX SWAP AGREEMENT October 2003 Nasdaq 100 Index Swap, Maturing 10/11/03* (Notional Value $216,610,417) ....................... 163,957 $ 3,809,689 ------------- ------------- *PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. SEMI-ANNUAL REPORT 103 JUNO MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) -------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 49.0% Fannie Mae 1.02% due 10/22/03 ............................ $ 50,000,000 $ 49,970,250 Farmer Mac 0.98% due 10/01/03 ............................ 50,000,000 50,000,000 1.03% due 12/19/03 ............................ 25,000,000 24,943,493 1.01% due 10/20/03 ............................ 24,650,000 24,636,860 1.04% due 10/30/03 ............................ 15,000,000 14,987,433 Federal Home Loan Bank 1.00% due 10/03/03 ............................ 50,500,000 50,497,195 1.02% due 10/03/03 ............................ 50,000,000 49,997,167 1.01% due 10/10/03 ............................ 50,000,000 49,987,375 1.00% due 10/17/03 ............................ 50,000,000 49,977,778 1.00% due 10/22/03 ............................ 50,000,000 49,970,833 1.01% due 10/22/03 ............................ 50,000,000 49,970,542 1.02% due 10/28/03 ............................ 50,000,000 49,961,750 1.02% due 10/15/03 ............................ 40,000,000 39,984,133 1.03% due 10/08/03 ............................ 25,000,000 24,994,993 1.00% due 10/15/03 ............................ 25,000,000 24,990,278 ------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $604,870,080) ........................... 604,870,080 ------------- CONTRACTS ---------- OPTIONS PURCHASED 0.0% Call Options on: December 2003 U.S. Treasury Bond Futures Contracts Expiring December 2003 with strike price 1320 . 2,000 31,250 December 2003 U.S. Treasury Bond Futures Contracts Expiring December 2003 with strike price 1300 . 1,818 28,406 December 2003 U.S. Treasury Bond Futures Contracts Expiring December 2003 with strike price of 1280 104 1,625 ------------- TOTAL OPTIONS PURCHASED (Cost $84,832) ................................ $ 61,281 ------------- See Notes to Financial Statements. 104 JUNO MASTER PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS 51.0% Joint Repurchase Agreement (Note 6) 0.96% due 10/01/03 ............................ $ 16,790,891 $ 16,790,891 0.94% due 10/01/03 ............................ 1,195,281 1,195,281 0.93% due 10/01/03 ............................ 16,790,891 16,790,891 0.91% due 10/01/03 ............................ 16,790,891 16,790,891 0.90% due 10/01/03 ............................ 23,704,786 23,704,786 Individual Repurchase Agreement Lehman Brothers, Inc. at 0.75% due 10/01/03 .................................. 553,155,000 553,155,000 -------------- (Secured by U.S. Treasury Bonds, at a rate of 5.375% and maturing 2/15/31, as collateral with a market value of $567,849,624) TOTAL REPURCHASE AGREEMENTS (Cost $628,427,740) ........................... 628,427,740 -------------- TOTAL INVESTMENTS 100% (Cost $1,233,382,652) ......................... $1,233,359,101 -------------- -------------- -------------------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) -------------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2003 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $123,768,375) ....................... 1,102 $ (7,887,831) ------------- ------------- FACE AMOUNT ------- U.S. TREASURY OBLIGATIONS SOLD SHORT U.S. Treasury Bond (Market Value $567,177,063) ................... $527,300,000 $ 23,881,786 ------------- ------------- See Notes to Financial Statements. SEMI-ANNUAL REPORT 105 -------------------------------------------------------------------------------- This page intentionally left blank. 106 & 107 SEMI-ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003 --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER ARKTOS MASTER JUNO MASTER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ ----------- ------------- ------------- ASSETS Securities at Value* (Note 1, 2 and 6) .................... $210,256,523 $598,653,331 $212,801,011 $1,233,359,101 Collateral for Securities Loaned (Note 10) ................ 49,741,480 -- -- -- Segregated Cash with Broker ............................... 7,637,860 22,834,935 24,146,572 2,418,303 Receivable for Equity Index Swap Settlement (Note 1) ..................................... -- -- 2,936,373 -- Receivable for Futures Contracts Settlement (Note 1) ..................................... -- 5,727,390 684,000 -- Receivable for Shares Purchased ........................... 1,930,621 11,573,758 7,278,980 15,474,522 Investment Income Receivable (Note 1) ..................... 226,622 4,135 1,740 13,453 ------------ ------------ ------------ -------------- TOTAL ASSETS ............................................ 269,793,106 638,793,549 247,848,676 1,251,265,379 ------------ ------------ ------------ -------------- LIABILITIES Short Sale at Market Value ................................ -- -- -- 567,177,062 Payable to Cover Short Sale ............................... -- -- -- 3,388,219 Payable for Futures Contracts Settlement (Note 1) ......... 1,447,567 -- -- 2,169,563 Payable upon Return of Securities Loaned (Note 10) ........ 49,741,480 -- -- -- Payable for Securities Purchased (Note 1) ................. -- 1,450 -- -- Investment Advisory Fee Payable (Note 4) .................. 131,183 355,397 113,882 490,670 Custody Fees Payable ...................................... 5,772 13,031 4,175 17,991 Interest Payable .......................................... -- -- -- 3,641,438 Payable to "Feeder" Fund .................................. 899 978 433 102 ------------ ------------ ------------ -------------- TOTAL LIABILITIES ....................................... 51,326,901 370,856 118,490 576,885,045 ------------ ------------ ------------ -------------- NET ASSETS (NOTE 9) ....................................... $218,466,205 $638,422,693 $247,730,186 $ 674,380,334 ------------ ------------ ------------ -------------- ------------ ------------ ------------ -------------- Shares Outstanding ........................................ 6,226,842 9,401,167 3,655,529 18,474,458 Net Asset Value Per Share ................................. $35.08 $67.91 $67.77 $36.50 * THE COST OF SECURITIES AT VALUE IS $187,993,449, $597,713,551, $212,806,681 AND $1,233,382,652, RESPECTIVELY.
See Notes to Financial Statements. 108 & 109 SEMI-ANNUAL REPORT STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003 --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER ARKTOS MASTER JUNO MASTER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ----------- ------------- ------------- ----------- INVESTMENT INCOME Interest (Note 1) ........................................ $ 197,037 $ 3,041,560 $ 837,234 $ 4,288,833 Interest from Securities Lending ......................... 891 -- -- -- Interest Related to Securities Sold Short ................ -- -- -- (10,957,806) Dividends, Net of Foreign Tax Withheld* (Note 1) ......... 1,370,802 -- -- -- ----------- ------------- ------------ ------------ Total Income ........................................... 1,568,730 3,041,560 837,234 (6,668,973) ----------- ------------- ------------ ------------ EXPENSES Advisory Fees (Note 4) ................................... 748,781 2,596,154 695,466 2,055,166 Custodian Fees ........................................... 34,939 100,039 26,731 76,749 ----------- ------------- ------------ ------------ Total Expenses ......................................... 783,720 2,696,193 722,197 2,131,915 ----------- ------------- ------------ ------------ Net Investment Income (Loss) ............................... 785,010 345,367 115,037 (8,800,888) ----------- ------------- ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities .................................... 7,982,465 (7,945,497) (15,255) (131,591) Equity Index Swaps ....................................... -- -- (52,188,561) -- Futures Contracts ........................................ 25,521,581 (124,824,345) (3,525,649) 2,376,081 Securities Sold Short .................................... -- -- -- (14,357,019) ----------- ------------- ------------ ------------ Total Net Realized Gain (Loss) ......................... 33,504,046 (132,769,842) (55,729,465) (12,112,529) ----------- ------------- ------------ ------------ Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities .................................... 15,375,301 1,913,972 4,655 (8,413) Equity Index Swaps ....................................... -- -- 9,208,573 -- Futures Contracts ........................................ (6,031,920) 16,647,940 372,492 (7,887,831) Securities Sold Short .................................... -- -- -- 22,426,647 ----------- ------------- ------------ ------------ Net Change in Unrealized Appreciation .................... 9,343,381 18,561,912 9,585,720 14,530,403 ----------- ------------- ------------ ------------ Net Gain (Loss) on Investments ......................... 42,847,427 (114,207,930) (46,143,745) 2,417,874 ----------- ------------- ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ..................................... $43,632,437 $(113,862,563) $(46,028,708) $ (6,383,014) ----------- ------------- ------------ ------------ ----------- ------------- ------------ ------------ * NET OF FOREIGN TAX WITHHELD OF $0, $0, $0 AND $0, RESPECTIVELY.
See Notes to Financial Statements. 110 & 111 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO URSA MASTER PORTFOLIO ----------------------------- ------------------------------ PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 ------------- -------------- ------------- ------------- FROM OPERATIONS Net Investment Income ....................... $ 785,010 $ 1,742,165 $ 345,367 $ 2,318,053 Net Realized Gain (Loss) on Investments ..... 33,504,046 (88,638,582) (132,769,842) 70,464,591 Net Change in Unrealized Appreciation (Depreciation) on Investments ............. 9,343,381 (26,259,052) 18,561,912 (4,992,677) ------------ -------------- ------------- ------------- Net Increase (Decrease) in Net Assets from Operations .................... 43,632,437 (113,155,469) (113,862,563) 67,789,967 ------------ -------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income ....................... -- (1,743,024) (358,768) (2,319,041) ------------ -------------- ------------- ------------- SHARE TRANSACTIONS Net Proceeds from Shares Purchased .......... 391,771,033 1,149,165,455 1,326,385,238 1,741,880,149 Net Value of Shares Purchased through Dividend Reinvestment ..................... -- 1,048,100 358,768 2,454,899 Net Cost of Shares Redeemed ................. (387,730,225) (1,156,513,695) (1,103,162,473) (1,509,228,411) ------------ -------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS ..................... 4,040,808 (6,300,140) 223,581,533 235,106,637 ------------ -------------- ------------- ------------- Net Increase (Decrease) in Net Assets ....... 47,673,245 (121,198,633) 109,360,202 300,577,563 NET ASSETS--BEGINNING OF PERIOD ............... 170,792,960 291,991,593 529,062,491 228,484,928 ------------ -------------- ------------- ------------- NET ASSETS--END OF PERIOD ..................... $218,466,205 $ 170,792,960 $ 638,422,693 $ 529,062,491 ------------ -------------- ------------- ------------- ------------ -------------- ------------- ------------- TRANSACTIONS IN SHARES Shares Purchased ............................ 11,694,843 34,699,740 18,779,188 22,308,516 Shares Purchased through Reinvestment ....... -- 30,491 5,066 31,665 ------------ -------------- ------------- ------------- Total Purchased ............................. 11,694,843 34,730,231 18,784,254 22,340,181 Shares Redeemed ............................. (11,696,357) (34,939,290) (15,913,679) (19,348,123) ------------ -------------- ------------- ------------- Net Shares Purchased (Redeemed) ............. (1,514) (209,059) 2,870,575 2,992,058 ------------ -------------- ------------- ------------- ------------ -------------- ------------- -------------
ARKTOS MASTER PORTFOLIO JUNO MASTER PORTFOLIO --------------------------- --------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003+ 2003 2003+ 2003 ------------- ------------ ------------ ------------ FROM OPERATIONS Net Investment Income (Loss) ................ $ 115,037 $ 770,871 $ (8,800,888) $ (2,076,712) Net Realized Gain (Loss) on Investments ..... (55,729,465) 19,846,429 (12,112,529) (9,237,761) Net Change in Unrealized Appreciation (Depreciation) on Investments ............. 9,585,720 (10,466,706) 14,530,403 615,465 ------------- ------------ ------------ ------------ Net Increase (Decrease) in Net Assets from Operations .................... (46,028,708) 10,150,594 (6,383,014) (10,699,008) ------------- ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income ....................... -- (28,000,000) -- -- ------------- ------------ ------------ ------------ SHARE TRANSACTIONS Net Proceeds from Shares Purchased .......... 372,610,692 527,229,704 944,950,419 853,252,982 Net Value of Shares Purchased through Dividend Reinvestment ..................... -- -- -- -- Net Cost of Shares Redeemed ................. (227,998,646) (476,161,977) (454,155,405) (685,690,416) ------------- ------------ ------------ ------------ NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ..................... 144,612,046 51,067,727 490,795,014 167,562,566 ------------- ------------ ------------ ------------ Net Increase in Net Assets .................. 98,583,338 33,218,321 484,412,000 156,863,558 NET ASSETS--BEGINNING OF PERIOD ............... 149,146,848 115,928,527 189,968,334 33,104,776 ------------- ------------ ------------ ------------ NET ASSETS--END OF PERIOD ..................... $ 247,730,186 $149,146,848 $674,380,334 $189,968,334 ------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ TRANSACTIONS IN SHARES Shares Purchased ............................ 5,150,905 5,251,475 25,608,328 22,026,488 Shares Purchased through Reinvestment ....... -- -- -- -- ------------- ------------ ------------ ------------ Total Purchased ............................. 5,150,905 5,251,475 25,608,328 22,026,488 Shares Redeemed ............................. (3,176,222) (4,931,561) (12,219,901) (17,656,209) ------------- ------------ ------------ ------------ Net Shares Purchased ....................... 1,974,683 319,914 13,388,427 4,370,279 ------------- ------------ ------------ ------------ ------------- ------------ ------------ ------------ + UNAUDITED.
See Notes to Financial Statements. 112 & 113 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO URSA MASTER PORTFOLIO ------------------------------------ -------------------------------------------------- PERIOD YEAR PERIOD PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+ 2003 2002* 2003+ 2003 2002 2001* ------------- --------- --------- ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $27.42 $45.36 $50.00 $81.01 $64.57 $65.19 $49.71 --------- --------- --------- --------- --------- --------- --------- Net Investment Income ................... .13 .31 .34 .04 .46 1.22 2.80 Net Realized and Unrealized Gains (Losses) on Securities ................ 7.53 (17.94) (4.62) (13.10) 16.44 (.35) 15.50 --------- --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. 7.66 (17.63) (4.28) (13.06) 16.90 .87 18.30 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................. -- (.31) (.36) (.04) (.46) (1.49) (2.82) --------- --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....................... 7.66 (17.94) (4.64) (13.10) 16.44 (.62) 15.48 --------- --------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $35.08 $27.42 $45.36 $67.91 $81.01 $64.57 $65.19 --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ................. 27.94% (38.94)% (8.54)% (16.12)% 26.21% 1.37% 38.06% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 0.78%** 0.79% 0.86%** 0.93%** 0.94% 0.94% 0.95%** Net Expenses ............................ 0.78%** 0.79% 0.86%** 0.93%** 0.94% 0.94% 0.95%** Net Investment Income ................... 0.78%** 0.91% 0.69%** 0.12%** 0.52% 1.90% 5.11%** SUPPLEMENTAL DATA: Portfolio Turnover Rate*** .............. 198% 603% 401% -- -- -- -- Net Assets, End of period (000's omitted) ................ $218,466 $170,793 $291,992 $638,423 $529,062 $228,485 $225,040 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2001--NOVA MASTER PORTFOLIO; APRIL 1, 2000--URSA MASTER PORTFOLIO. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE URSA MASTER PORTFOLIO TYPICALLY HOLDS MOST OF ITS INVESTMENTS IN OPTIONS AND FUTURES CONTRACTS WHICH ARE DEEMED SHORT-TERM SECURITIES. + UNAUDITED.
See Notes to Financial Statements. 114 & 115 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONCLUDED) --------------------------------------------------------------------------------
ARKTOS MASTER ARKTOS MASTER PORTFOLIO PORTFOLIO ------------------------------------ --------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $88.73 $85.18 $96.47 $53.67 --------- --------- --------- --------- Net Investment Income (Loss) ............ (1.70) 6.71 1.37 3.70 Net Realized and Unrealized Gains (Losses) on Securities ................ (19.26) 16.02 (8.93) 42.92 --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. (20.96) 22.73 (7.56) 46.62 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................... -- (19.18) (3.73) (3.82) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....................... (20.96) 3.55 (11.29) 42.80 --------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ......................... $67.77 $88.73 $85.18 $96.47 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ................. (23.62)% 20.95% (8.03)% 91.61% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 0.93%** 0.94% 0.94% 0.96%** Net Expenses ............................ 0.93%** 0.94% 0.94% 0.95%** Net Investment Income ................... 0.15%** 0.51% 1.63% 6.58%** SUPPLEMENTAL DATA: Portfolio Turnover Rate*** .............. -- -- -- 1,788% Net Assets, End of period (000's omitted) ................ $247,730 $149,147 $115,929 $78,919
JUNO MASTER PORTFOLIO ---------------------------------------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+ 2003 2002 2001* ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE-- BEGINNING OF PERIOD ................... $37.35 $46.25 $45.39 $49.91 ------------- --------- --------- --------- Net Investment Income (Loss) ............ (.48) (.41) .69 2.72 Net Realized and Unrealized Gains (Losses) on Securities ................ (.37) (8.49) 1.14 (4.45) ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. (.85) (8.90) 1.83 (1.73) DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income ................... -- -- (.97) (2.79) ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....................... (.85) (8.90) .86 (4.52) ------------- --------- --------- --------- NET ASSET VALUE-- END OF PERIOD ......................... $36.50 $37.35 $46.25 $45.39 ------------- --------- --------- --------- ------------- --------- --------- --------- TOTAL INVESTMENT RETURN ................. (2.28)% (19.24)% 4.12% (3.67)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 0.93%** 0.94% 0.93% 0.94%** Net Expenses ............................ 0.93%** 0.94% 0.93% 0.94%** Net Investment Income (Loss) ............ (3.86)%** (2.72)% 1.61% 5.04%** SUPPLEMENTAL DATA: Portfolio Turnover Rate*** .............. 160% -- -- -- Net Assets, End of period (000's omitted) ................ $674,380 $189,968 $33,105 $12,417 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 2000--ARKTOS MASTER PORTFOLIO AND JUNO MASTER PORTFOLIO. ** ANNUALIZED. *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE ARKTOS MASTER PORTFOLIO TYPICALLY HOLDS MOST OF ITS INVESTMENTS IN OPTIONS AND FUTURES CONTRACTS WHICH ARE DEEMED SHORT-TERM SECURITIES. + UNAUDITED.
See Notes to Financial Statements. 116 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Rydex Series Funds (the "Trust") are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as a non-diversified, open-ended investment company, and are authorized to issue an unlimited number of shares. The Trust offers five separate classes of shares, Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares, and Institutional Class Shares. Sales of shares of each Class are made without a sales charge at the net asset value per share. C Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12 months of purchase. At September 30, 2003, the Trust consisted of thirty-four separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen Sector Funds, and two Strategic Funds. This report covers the fourteen Benchmark Funds and the Money Market Fund (the "Funds"), while the Sector Funds and the Strategic Funds are contained in separate reports. The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America and are consistently followed by the Trust. A. Equity securities listed on an exchange (New York Exchange or American Stock Exchange) are valued at the last quoted sales price as of close of business on the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the valuation date. Equity securities on the Nasdaq market system are valued at the Nasdaq Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation date. Listed options held by the Trust are valued at their last bid price. Over-the-counter options held by the Trust are valued using the average bid price obtained from one or more security dealers. The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the last quoted sales price as of 4:00 p.m. on the valuation date. Short-term securities, if any, are valued at amortized cost, which approximates market value. Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under direction of the Board of Trustees or by the Advisor using methods established or ratified by the Board of Trustees. The shares of the Master Portfolios held by the Feeder Funds are valued at their respective daily Net Asset Value. B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. C. Net investment income is computed and dividends are declared daily in the U.S. Government Bond Fund and the U.S. Government Money Market Fund. Income dividends in these funds are paid monthly. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income in the remaining Benchmark Funds and distributions of net realized capital gains in all funds are SEMI-ANNUAL REPORT 117 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- recorded on the ex-dividend date. Distributions from net investment income and net realized capital gains are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States. These differences are primarily due to differing treatments for items such as deferral of wash sales and post-October losses and regulated futures contracts and options. D. When a Fund engages in a short sale, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the market value of the short sale. The Fund maintains a segregated account of securities as collateral for short sales. The Fund is exposed to market risk based on the amount, if any, that the market value of the stock exceeds the market value of the securities in the segregated account. E. Upon the purchase of an option by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, the Fund will realize a loss in the amount of the cost of the option. When a fund enters into a closing sale transaction, the Fund will realize a gain or loss depending on whether the proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, it will realize a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. When a Fund exercises a call option, the cost of the security that the Fund purchases upon exercise will be increased by the premium originally paid. When a Fund writes (sells) an option, an amount equal to the premium received is entered in the Trust's accounting records as an asset and equivalent liability. The amount of the liability is subsequently marked to market to reflect the current value of the option written. When an option expires, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold). F. The Fund may purchase or sell stock and bond index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. G. The Funds may enter into equity index swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified equity security, basket of equity securities, or equity index in return for periodic payments based on a fixed or variable interest rate or the change in 118 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- market value of a different equity security, basket of equity securities, or equity index. Swap agreements are used to obtain exposure to an equity or market without owning or taking physical custody of securities. H. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates. I. The Trust may enter into forward currency contracts primarily to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a forward currency contract, the fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the corresponding unrealized gain or loss on the contracts, as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the statement of assets and liabilities. Realized and unrealized gains and losses are included in the Statement of Operations. J. Segregated Cash with Broker is held as collateral for investments in derivative instruments such as futures contracts and equity index swap agreements. K. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the discount rates paid at the time of purchase by the fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity. L. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees relating to Advisor Class Shares and H Class Shares and service and distribution fees related to C Class Shares, are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis based upon the respective aggregate net assets value of each Fund included in the Trust. M. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates SEMI-ANNUAL REPORT 119 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 2. FINANCIAL INSTRUMENTS As part of its investment strategy, the Trust may utilize a variety of derivative instruments, including options, futures, options on futures, and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. The risk associated with purchasing options is limited to the premium originally paid. Options written by a fund involve, to varying degrees, risk of loss in excess of the option value reflected in the Statement of Assets and Liabilities. The risk in writing a covered call option is that a fund may forego the opportunity for profit if the market price of the underlying security increases and the option is exercised. The risk in writing a covered put option is that a fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is the risk that a fund may not be able to enter into a closing transaction because of an illiquid secondary market or, for over-the-counter options, because of the counterparty's inability to perform. The Trust has established strict counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. There are several risks in connection with the use of futures contracts. Futures contracts involve, to varying degrees, risk of loss in excess of amounts reflected in the financial statements. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a fund may not be able to enter into a closing transaction because of an illiquid secondary market. The use of equity swaps involves risks that are different from those associated with ordinary portfolio securities transactions. Swap agreements may be considered to be illiquid. Although a fund will not enter into any swap agreement unless the Advisor believes that the other party to the transaction is creditworthy, a fund does bear the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of the agreement counterparty. The Trust has established strict counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. In conjunction with the use of options, futures, options on futures and swap agreements, as well as short sales of securities, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash segregated at the custodian bank, or the repurchase agreements allocated to each Fund. The risks inherent in the use of options, futures contracts, options on futures contracts, and swap agreements include 1) adverse changes in the value of such instruments; 2) imperfect 120 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; 3) the possible absence of a liquid secondary market for any particular instrument at any time; and 4) the potential of counterparty default. 3. MASTER-FEEDER ARRANGEMENT Currently, the Nova Fund, the Ursa Fund, the Arktos Fund, and the Juno Fund are operating under a "master-feeder arrangement." Under a master-feeder arrangement, a Fund invests substantially all of its assets in the Master Portfolio, a separate open-end investment company that has the same investment objectives as the Fund, e.g., the Nova Fund would act as a "feeder fund," holding shares of its Master Portfolio as its only investment. As a result, the Fund has an indirect interest in all of the securities owned by the Master Portfolio. Because of this indirect interest, the Fund's investment returns should be the same as those of its Master Portfolio, adjusted for Fund expenses. The financial statements of the Master Portfolios, including the Schedule of Investments, are included in this report and should be read with the Funds' financial statements. The percentage of Nova Master Portfolio, Ursa Master Portfolio, Arktos Master Portfolio, and Juno Master Portfolio owned by the Nova Fund, Ursa Fund, Arktos Fund, and Juno Fund, respectively, at September 30, 2003, was 100 percent. The Funds record their investments in the Master Portfolio at fair value. Valuation of securities held by the Master Portfolio is discussed in Note 1, Significant Accounting Policies. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of an investment advisory contract, the Trust pays Rydex Global Advisors (the "Advisor"), an affiliated entity, investment advisory fees calculated at an annualized rate of 0.50% of the average daily net assets of the U.S. Government Bond Fund and the U.S. Government Money Market Fund; 0.75% of the average daily net assets of the OTC Fund and the Nova Master Portfolio; and 0.90% of the average daily net assets of the Medius Fund, the Mekros Fund, the Large-Cap Europe Fund, the Large-Cap Japan Fund, the Ursa Master Portfolio, the Arktos Master Portfolio, and the Juno Master Portfolio. For the period ending September 30, 2003, the Advisor voluntarily reimbursed $24,197 of miscellaneous expenses in the Institutional Class of the U.S. Government Money Market Fund. Certain officers and trustees of the Trust are also officers and directors of Rydex Global Advisors. Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides transfer agent services to the Trust for fees calculated at an annualized rate of 0.20% of the average daily net assets of the U.S. Government Bond Fund and the U.S. Government Money Market Fund; and 0.25% of the average daily net assets of the Nova Fund, the Ursa Fund, the OTC Fund, the Arktos Fund, the Medius Fund, the Mekros Fund, the Juno Fund, the Large-Cap Europe Fund, and the Large-Cap Japan Fund. For the period ended September 30, 2003, SEMI-ANNUAL REPORT 121 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- the Sevicer voluntarily waived transfer agent service fees in the amount of $60,075 in the Institutional Class of the U.S. Government Money Market. The Servicer also provides accounting services to the Trust calculated at an annualized rate 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each of the benchmark funds. For the period ended September 30, 2003, the Servicer voluntarily waived accounting fees in the amount of $15,151 in the Institutional Class of the U.S. Government Money Market Fund. Certain officers and trustees of the Trust are also officers and directors of Rydex Fund Services, Inc. The Trust has adopted a Distribution and Shareholder Services Plan applicable to Advisor Class Shares and a Distribution Plan applicable to H Class shares for which Rydex Distributors, Inc. (the "Distributor"), an affiliated entity, and other firms that provide distribution and/or shareholder services ("Service Providers") may receive compensation. If a Service Provider provides distribution services, the Trust will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its fees. The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services. For the period ended September 30, 2003, the Distributor voluntarily waived $329,005 of 12b-1 expenses in the Advisor Class of the U.S. Government Money Market Fund. With regard to Advisor Class Shares only, if a Service Provider provides shareholders services, the Distributor will receive shareholder servicing fees from the Trust at an annual rate not to exceed 0.25% of average daily net assets. The Distributor, in turn, will pay the Service Provider out of its fees. The Trust has adopted a separate Distribution and Shareholder Services Plan (the "C Class Plan") applicable to its C Class Shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds' C Class Shares average daily net assets. The annual 0.25% service fee compensates your financial advisor for providing on-going services to you. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record. The annual 0.75% distribution fee reimburses the Distributor for paying your financial advisor an on-going sales commission. The Distributor advances the first year's service and distribution fees. For the period ended September 30, 2003, the Distributor waived $701,602 of C Class Plan expenses in the C Class of the U.S. Government Money Market Fund. Certain officers and trustees of the Trust are also officers and directors of Rydex Distributors, Inc. 122 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 5. FEDERAL INCOME TAX INFORMATION The Trust intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income to its shareholders. Therefore, no Federal income tax provision is required. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for futures and options transactions, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations. Permanent book and tax basis differences, if any, relating to shareholder distributions will result in reclassifications to paid-in capital. This includes the utilization of earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes, net operating losses not utilized during the current year, and differences in the treatment of certain notional principal contracts (e.g. financial futures contracts). These reclassifications have no effect on net assets or net asset values per share. Any taxable gain remaining at fiscal year end is distributed in the following year. TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS At September 30, 2003, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:
TAX TAX NET TAX UNREALIZED UNREALIZED UNREALIZED FUND COST GAIN LOSS GAIN (LOSS) ---- -------------- ------------ -------------- ------------- Nova Fund ................ $ 179,184,654 $ 39,281,551 $ -- $ 39,281,551 Ursa Fund ................ 741,616,477 -- (103,193,784) (103,193,784) OTC Fund ................. 502,850,530 348,831,861 (3,267,161) 345,564,700 Arktos Fund .............. 297,685,353 -- (49,955,167) (49,955,167) Medius Fund .............. 28,416,727 3,604,901 (47,821) 3,557,080 Mekros Fund .............. 105,530,337 4,528,595 (2,466,960) 2,061,635 U.S. Government Bond Fund .............. 73,818,053 5,020,628 -- 5,020,628 Juno Fund ................ 684,422,596 -- (10,042,262) (10,042,262) Large-Cap Europe Fund .... 6,197,619 -- -- -- Large-Cap Japan Fund ..... 65,632,341 -- -- -- U.S. Government Money Market Fund ...... 1,652,073,327 -- -- -- Nova Master Portfolio .... 185,099,315 26,079,230 (922,022) 25,157,208 Ursa Master Portfolio .... 597,713,551 1,018,155 (78,375) 939,780 Arktos Master Portfolio .. 212,806,681 -- (5,670) (5,670) Juno Master Portfolio .... 1,247,897,272 -- (14,538,171) (14,538,171)
SEMI-ANNUAL REPORT 123 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 6. REPURCHASE AGREEMENTS The Trust transfers univested cash balances into a single joint account, along with uninvested cash of the Rydex Dynamic Funds, a separate Trust, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury or U.S. Government Agencies. The collateral is in the possession of the Trusts' custodians and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreements at maturity. The repurchase agreements that were executed by the joint account and outstanding as of September 30, 2003, are as follows:
TERMS OF FACE MARKET MATURITY COUNTERPARTY AGREEMENT VALUE VALUE VALUE ------------ ----------------- ------------ ------------ ------------ Salomon Smith Barney, Inc. ....................... 0.90% due 10/1/03 $240,000,000 $240,000,000 $240,005,918 U.S. Bank NA ................. 0.96% due 10/1/03 170,000,000 170,000,000 170,004,471 Paine Webber, Inc. ........... 0.93% due 10/1/03 170,000,000 170,000,000 170,004,332 Morgan Stanley, Inc. ......... 0.91% due 10/1/03 170,000,000 170,000,000 170,004,238 Lehman Brothers, Inc. ........ 0.94% due 10/1/03 12,101,668 12,101,668 12,101,980 ------------ ------------ $762,101,668 $762,120,939 ------------ ------------ ------------ ------------
As of September 30, 2003, the collateral for the repurchase agreements in the joint account was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE --------------- -------------- ------------ -------------- U.S. Treasury Bonds ................. 3.875%-5.375% $268,291,421 $312,444,509 U.S. Treasury Notes ................. 0.000%-7.000% 257,405,610 293,257,361 Ginnie Mae .......................... 4.500%-5.000% 174,032,279 173,848,577 ------------ $779,550,447 ------------ ------------
In the event of counterparty default, the Trust has the right to collect the collateral to offset losses incurred. There is potential loss to the Trust in the event the Trust is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Trust seeks to assert its rights. The Trust's investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the credit worthiness of those banks and dealers with which the Trust enters into repurchase agreements to evaluate potential risks. 124 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 7. SECURITIES TRANSACTIONS During the period ended September 30, 2003, purchases and sales of investment securities, excluding short-term and temporary cash investments, were: NOVA URSA ARKTOS MASTER MASTER OTC MASTER PORTFOLIO PORTFOLIO FUND PORTFOLIO ------------ ------------ ------------ --------- Purchases .... $332,118,460 $ -- $598,630,108 $ -- Sales ........ $316,816,335 $ -- $585,468,963 $ -- U.S. JUNO MEDIUS MEKROS GOVERNMENT MASTER FUND FUND BOND FUND PORTFOLIO ------------ ------------ ------------ --------- Purchases .... $226,721,862 $335,545,805 $358,503,898 $1,060,219,698 Sales ........ $218,424,518 $298,684,306 $352,360,464 $ 660,159,547 U.S. LARGE-CAP LARGE-CAP GOVERNMENT EUROPE JAPAN MONEY FUND FUND MARKET FUND ------------ ------------ ------------ Purchases .... $ -- $ -- $ -- Sales ........ $ -- $ -- $ -- 8. SHARE TRANSACTIONS The Trust is authorized to distribute an unlimited number of shares. Transactions in shares for the period ended September 30, 2003 were: INVESTOR CLASS:
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ----------- ------------ ------------ ----------- Shares Purchased ........... 33,206,954 150,650,438 106,849,501 21,282,414 Purchased through Dividend Reinvestment ............. -- -- -- -- ----------- ------------ ------------ ----------- Total Purchased ............ 33,206,954 150,650,438 106,849,501 21,282,414 Shares Redeemed ............ (33,844,581) (136,859,863) (109,342,678) (17,255,941) ----------- ------------ ------------ ----------- Net Shares Purchased (Redeemed) ............... (637,627) 13,790,575 (2,493,177) 4,026,473 ----------- ------------ ------------ ----------- ----------- ------------ ------------ ----------- U.S. U.S. GOVERNMENT GOVERNMENT BOND JUNO MONEY FUND FUND MARKET FUND ----------- ----------- --------------- Shares Purchased ............ 48,649,282 67,032,448 10,278,026,002 Purchased through Dividend Reinvestment .............. 72,854 -- 1,354,494 ----------- ----------- --------------- Total Purchased ............. 48,722,136 67,032,448 10,279,380,496 Shares Redeemed ............. (48,175,199) (52,805,738) (10,290,039,558) ----------- ----------- --------------- Net Shares Purchased (Redeemed) ................ 546,937 14,226,710 (10,659,062) ----------- ----------- --------------- ----------- ----------- ---------------
SEMI-ANNUAL REPORT 125 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- ADVISOR CLASS:
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 7,747,978 16,113,879 8,673,873 157,737 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ ------------ --------------- -------------- Total Purchased ................. 7,747,978 16,113,879 8,673,873 157,737 Shares Redeemed ................. (7,338,274) (14,415,573) (11,303,339) (73,659) ------------ ------------ --------------- -------------- Net Shares Purchased (Redeemed) .................... 409,704 1,698,306 (2,629,466) 84,078 ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- U.S. U.S. GOVERNMENT GOVERNMENT BOND JUNO MONEY FUND FUND MARKET FUND ------------ ------------ --------------- Shares Purchased ................ 1,888,465 1,431,186 2,715,067,154 Purchased through Dividend Reinvestment .................. 1,113 -- 7,033 ------------ ------------ --------------- Total Purchased ................. 1,889,578 1,431,186 2,715,074,187 Shares Redeemed ................. (592,464) (787,473) (2,637,942,518) ------------ ------------ --------------- Net Shares Purchased ............ 1,297,114 643,713 77,131,669 ------------ ------------ --------------- ------------ ------------ --------------- H CLASS: LARGE-CAP LARGE-CAP MEDIUS MEKROS EUROPE JAPAN FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 17,078,522 58,798,418 13,254,385 12,316,624 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ ------------ --------------- -------------- Total Purchased ................. 17,078,522 58,798,418 13,254,385 12,316,624 Shares Redeemed ................. (16,873,062) (56,931,488) (13,327,130) (10,279,944) ------------ ------------ --------------- -------------- Net Shares Purchased (Redeemed) .................... 205,460 1,866,930 (72,745) 2,036,680 ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- C CLASS: NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 5,448,725 14,306,602 9,787,104 1,752,436 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ ------------ --------------- -------------- Total Purchased ................. 5,448,725 14,306,602 9,787,104 1,752,436 Shares Redeemed ................. (5,178,105) (11,799,353) (9,597,833) (1,194,206) ------------ ------------ --------------- -------------- Net Shares Purchased ............ 270,620 2,507,249 189,271 558,230 ------------ ------------ --------------- -------------- ------------ ------------ --------------- --------------
126 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------------------------------------
U.S. GOVERNMENT MEDIUS MEKROS BOND JUNO FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 2,258,141 8,206,883 4,410,290 13,201,533 Purchased through Dividend Reinvestment .................. -- -- 4,897 -- ------------ ------------ --------------- -------------- Total Purchased ................. 2,258,141 8,206,883 4,415,187 13,201,533 Shares Redeemed ................. (2,308,993) (7,904,272) (3,823,415) (4,264,525) ------------ ------------ --------------- -------------- Net Shares Purchased (Redeemed) .................... (50,852) 302,611 591,772 8,937,008 ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- U.S. LARGE-CAP LARGE-CAP GOVERNMENT EUROPE JAPAN MONEY FUND FUND MARKET FUND ------------ ------------ --------------- Shares Purchased ................ 1,073,254 329,263 1,742,520,374 Purchased through Dividend Reinvestment .................. -- -- 4,352 ------------ ------------ --------------- Total Purchased ................. 1,073,254 329,263 1,742,524,726 Shares Redeemed ................. (1,195,027) (275,833) (1,728,870,659) ------------ ------------ --------------- Net Shares Purchased (Redeemed) .................... (121,773) 53,430 13,654,067 ------------ ------------ --------------- ------------ ------------ --------------- INSTITUTIONAL CLASS: U.S. GOVERNMENT MONEY MARKET FUND ------------ Shares Purchased -- Purchased through Dividend Reinvestment .................. 28,440 ------------ Total Purchased ................. 28,440 Shares Redeemed ................. (10,036,610) ------------ Net Shares Redeemed ............. (10,008,170) ------------ ------------
SEMI-ANNUAL REPORT 127 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Transactions in shares for the year ended March 31, 2003 were: INVESTOR CLASS:
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 83,857,036 222,974,131 247,268,777 28,728,910 Purchased through Dividend Reinvestment .................. -- 212,405 -- 111,034 ------------ ------------ --------------- -------------- Total Purchased ................. 83,857,036 223,186,536 247,268,777 28,839,944 Shares Redeemed ................. (84,123,194) (207,588,037) (231,234,240) (28,492,265) ------------ ------------ --------------- -------------- Net Shares Purchased (Redeemed) ...................... (266,158) 15,598,499 16,034,537 347,679 ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- U.S. U.S. GOVERNMENT GOVERNMENT BOND JUNO MONEY FUND FUND MARKET FUND ------------ ------------ --------------- Shares Purchased ................ 162,319,402 137,819,143 24,111,170,364 Purchased through Dividend Reinvestment .................. 188,040 7,556 8,020,358 ------------ ------------ --------------- Total Purchased ................. 162,507,442 137,826,699 24,119,190,722 Shares Redeemed ................. (159,368,511) (135,422,806) (23,879,948,615) ------------ ------------ --------------- Net Shares Purchased ............ 3,138,931 2,403,893 239,242,107 ------------ ------------ --------------- ------------ ------------ --------------- ADVISOR CLASS: U.S. GOVERNMENT NOVA URSA OTC MONEY FUND FUND FUND MARKET FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 29,792,440 26,350,006 81,322,305 5,729,683,870 Purchased through Dividend Reinvestment .................. -- 6,853 -- 1,040,724 ------------ ------------ --------------- -------------- Total Purchased ................. 29,792,440 26,356,859 81,322,305 5,730,724,594 Shares Redeemed ................. (30,368,140) (23,921,007) (77,014,920) (5,914,567,833) ------------ ------------ --------------- -------------- Net Shares Purchased (Redeemed) .................... (575,700) 2,435,852 4,307,385 (183,843,239) ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- H CLASS: MEDIUS MEKROS LARGE-CAP LARGE-CAP FUND FUND EUROPE FUND JAPAN FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 93,819,644 115,322,173 37,130,484 13,245,498 Purchased through Dividend Reinvestment .................. 9,265 11,733 -- -- ------------ ------------ --------------- -------------- Total Purchased ................. 93,828,909 115,333,906 37,130,484 13,245,498 Shares Redeemed ................. (97,371,579) (118,163,700) (37,288,995) (13,980,368) ------------ ------------ --------------- -------------- Net Shares Redeemed ............. (3,542,670) (2,829,794) (158,511) (734,870) ------------ ------------ --------------- -------------- ------------ ------------ --------------- --------------
128 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- C CLASS:
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 11,268,899 16,643,783 11,462,178 2,077,755 Purchased through Dividend Reinvestment .................. -- 5,170 -- 1,928 ------------ ------------ --------------- -------------- Total Purchased ................. 11,268,899 16,648,953 11,462,178 2,079,683 Shares Redeemed ................. (10,847,905) (15,955,243) (10,601,971) (2,069,791) ------------ ------------ --------------- -------------- Net Shares Purchased ............ 420,994 693,710 860,207 9,892 ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- U.S. GOVERNMENT MEDIUS MEKROS BOND JUNO FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ................ 6,276,724 15,463,918 2,371,414 9,481,230 Purchased through Dividend Reinvestment .................. 1,123 663 3,299 994 ------------ ------------ --------------- -------------- Total Purchased ................. 6,277,847 15,464,581 2,374,713 9,482,224 Shares Redeemed ................. (5,990,604) (15,320,356) (2,200,459) (6,662,145) ------------ ------------ --------------- -------------- Net Shares Purchased ............ 287,243 144,225 174,254 2,820,079 ------------ ------------ --------------- -------------- ------------ ------------ --------------- -------------- U.S. GOVERNMENT LARGE-CAP LARGE-CAP MONEY EUROPE FUND JAPAN FUND MARKET FUND ------------ ------------ --------------- Shares Purchased ................ 2,342,639 217,941 2,555,257,130 Purchased through Dividend Reinvestment .................. -- -- 80,795 ------------ ------------ --------------- Total Purchased ................. 2,342,639 217,941 2,555,337,925 Shares Redeemed ................. (2,149,285) (217,899) (2,401,512,601) ------------ ------------ --------------- Net Shares Purchased ............ 193,354 42 153,825,324 ------------ ------------ --------------- ------------ ------------ --------------- INSTITUTIONAL CLASS: U.S. GOVERNMENT MONEY MARKET FUND ------------ Shares Purchased ................ 70,000,000 Purchased through Dividend Reinvestment .................. 63,341 ------------ Total Purchased ................. 70,063,341 Shares Redeemed ................. (10,055,171) ------------ Net Shares Purchased ............ 60,008,170 ------------ ------------
SEMI-ANNUAL REPORT 129 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Transactions in dollars for the period ended September 30, 2003 were: INVESTOR CLASS:
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ -------------- ------------- ------------ Shares Purchased ................ $632,853,687 $1,708,614,282 $ 876,545,709 $655,248,358 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ -------------- ------------- ------------ Total Purchased ................. 632,853,687 1,708,614,282 876,545,709 655,248,358 Shares Redeemed ................. (641,521,998) (1,533,754,887) (893,895,823) (529,211,905) ------------ -------------- ------------- ------------ Net Change ...................... $ (8,668,311) $ 174,859,395 $ (17,350,114) $126,036,453 ------------ -------------- ------------- ------------ ------------ -------------- ------------- ------------ U.S. U.S. GOVERNMENT GOVERNMENT BOND JUNO MONEY FUND FUND MARKET FUND ------------ -------------- --------------- Shares Purchased ................ $532,159,218 $1,417,451,213 $10,278,026,002 Purchased through Dividend Reinvestment .................. 784,425 -- 1,354,494 ------------ -------------- --------------- Total Purchased ................. 532,943,643 1,417,451,213 10,279,380,496 Shares Redeemed ................. (528,647,315) (1,121,567,530) (10,290,039,558) ------------ -------------- --------------- Net Change ...................... $ 4,296,328 $ 295,883,683 $ (10,659,062) ------------ -------------- --------------- ------------ -------------- --------------- ADVISOR CLASS: NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ ------------ ------------ ---------- Shares Purchased ................ $142,085,270 $179,049,850 $ 70,016,493 $4,492,588 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ ------------ ------------ ---------- Total Purchased ................. 142,085,270 179,049,850 70,016,493 4,492,588 Shares Redeemed ................. (134,634,104) (157,435,521) (88,487,950) (2,126,079) ------------ ------------ ------------ ---------- Net Change ...................... $ 7,451,166 $ 21,614,329 $(18,471,457) $2,366,509 ------------ ------------ ------------ ---------- ------------ ------------ ------------ ---------- U.S. U.S. GOVERNMENT GOVERNMENT BOND JUNO MONEY FUND FUND MARKET FUND ----------- ------------ -------------- Shares Purchased ................ $19,583,204 $ 31,059,452 $2,715,067,154 Purchased through Dividend Reinvestment .................. 11,863 -- 7,033 ----------- ------------ -------------- Total Purchased ................. 19,595,067 31,059,452 2,715,074,187 Shares Redeemed ................. (6,064,773) (17,111,268) (2,637,942,518) ----------- ------------ -------------- Net Change ...................... $13,530,294 $ 13,948,184 $ 77,131,669 ----------- ------------ -------------- ----------- ------------ --------------
130 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- H CLASS:
MEDIUS MEKROS LARGE-CAP LARGE-CAP FUND FUND EUROPE FUND JAPAN FUND ------------ -------------- ------------- ------------- Shares Purchased ................ $354,179,319 $1,065,810,004 $ 163,253,001 $ 277,125,981 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ -------------- ------------- ------------- Total Purchased ................. 354,179,319 1,065,810,004 163,253,001 277,125,981 Shares Redeemed ................. (350,553,478) (1,035,870,786) (165,765,799) (217,243,364) ------------ -------------- ------------- ------------- Net Change ...................... $ 3,625,841 $ 29,939,218 $ (2,512,798) $ 59,882,617 ------------ -------------- ------------- ------------- ------------ -------------- ------------- ------------- C CLASS: NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------ -------------- ------------- ------------- Shares Purchased ................ $ 99,882,987 $ 159,006,663 $ 78,675,471 $ 51,333,392 Purchased through Dividend Reinvestment .................. -- -- -- -- ------------ -------------- ------------- ------------- Total Purchased ................. 99,882,987 159,006,663 78,675,471 51,333,392 Shares Redeemed ................. (93,944,979) (130,597,370) (77,136,416) (34,670,333) ------------ -------------- ------------- ------------- Net Change ...................... $ 5,938,008 $ 28,409,293 $ 1,539,055 $ 16,663,059 ------------ -------------- ------------- ------------- ------------ -------------- ------------- ------------- U.S. GOVERNMENT MEDIUS MEKROS BOND JUNO FUND FUND FUND FUND ------------ -------------- ------------- ------------- Shares Purchased ................ $ 46,299,939 $ 147,450,950 $ 47,186,118 $ 271,460,767 Purchased through Dividend Reinvestment .................. -- -- 51,996 -- ------------ -------------- ------------- ------------- Total Purchased ................. 46,299,939 147,450,950 47,238,114 271,460,767 Shares Redeemed ................. (47,036,925) (142,479,503) (40,777,329) (88,812,617) ------------ -------------- ------------- ------------- Net Change ...................... $ (736,986) $ 4,971,447 $ 6,460,785 $ 182,648,150 ------------ -------------- ------------- ------------- ------------ -------------- ------------- ------------- U.S. GOVERNMENT LARGE-CAP LARGE-CAP MONEY EUROPE FUND JAPAN FUND MARKET FUND ------------ -------------- -------------- Shares Purchased ................ $ 13,340,040 $ 8,662,800 $1,742,520,373 Purchased through Dividend Reinvestment .................. -- -- 4,353 ------------ -------------- -------------- Total Purchased ................. 13,340,040 8,662,800 1,742,524,726 Shares Redeemed ................. (14,486,152) (7,140,568) (1,728,870,660) ------------ -------------- -------------- Net Change ...................... $ (1,146,112) $ 1,522,232 $ 13,654,066 ------------ -------------- -------------- ------------ -------------- --------------
SEMI-ANNUAL REPORT 131 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- INSTITUTIONAL CLASS: U.S. GOVERNMENT MONEY MARKET FUND ------------ Shares Purchased ............... $ -- Purchased through Dividend Reinvestment ................. 28,440 ----------- Total Purchased ................ 28,440 Shares Redeemed ................ (10,036,610) ----------- Net Change ..................... $(10,008,170) ----------- ----------- Transactions in dollars for the year ended March 31, 2003 were: INVESTOR CLASS:
NOVA URSA OTC FUND FUND FUND -------------- -------------- -------------- Shares Purchased ............... $1,550,454,716 $2,830,116,550 $1,802,548,833 Purchased through Dividend Reinvestment ................. -- 2,695,421 -- -------------- -------------- -------------- Total Purchased ................ 1,550,454,716 2,832,811,971 1,802,548,833 Shares Redeemed ................ (1,556,893,272) (2,638,186,951) (1,687,027,469) -------------- -------------- -------------- Net Change ..................... $ (6,438,556) $ 194,625,020 $ 115,521,364 -------------- -------------- -------------- -------------- -------------- -------------- U.S. GOVERNMENT ARKTOS BOND JUNO FUND FUND FUND -------------- -------------- -------------- Shares Purchased ............... $1,170,064,405 $1,671,834,178 $1,251,087,583 Purchased through Dividend Reinvestment ................. 4,404,716 1,941,577 56,144 -------------- -------------- -------------- Total Purchased ................ 1,174,469,121 1,673,775,755 1,251,143,727 Shares Redeemed ................ (1,146,919,802) (1,637,318,037) (1,144,688,438) -------------- -------------- -------------- Net Change ..................... $ 27,549,319 $ 36,457,718 $ 106,455,289 -------------- -------------- -------------- -------------- -------------- -------------- U.S. GOVERNMENT MONEY MARKET FUND --------------- Shares Purchased ............... $24,111,170,705 Purchased through Dividend Reinvestment ................. 8,020,358 --------------- Total Purchased ................ 24,119,191,063 Shares Redeemed ................ (23,879,948,617) --------------- Net Change ..................... $ 239,242,446 --------------- ---------------
132 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- ADVISOR CLASS:
U.S. GOVERNMENT NOVA URSA OTC MONEY FUND FUND FUND MARKET FUND -------------- -------------- ------------- -------------- Shares Purchased ............... $ 535,977,096 $ 330,276,923 $ 566,145,734 $5,729,683,870 Purchased through Dividend Reinvestment ................. -- 84,699 -- 1,040,724 -------------- -------------- ------------- -------------- Total Purchased ................ 535,977,096 330,361,622 566,145,734 5,730,724,594 Shares Redeemed ................ (545,080,007) (297,274,153) (532,874,518) (5,914,567,833) -------------- -------------- ------------- -------------- Net Change ..................... $ (9,102,911) $ 33,087,469 $ 33,271,216 $ (183,843,239) -------------- -------------- ------------- -------------- -------------- -------------- ------------- -------------- H CLASS: MEDIUS MEKROS LARGE-CAP LARGE-CAP FUND FUND EUROPE FUND JAPAN FUND -------------- -------------- ------------- -------------- Shares Purchased ............... $1,945,416,153 $1,940,304,439 $444,767,939 $ 323,446,400 Purchased through Dividend Reinvestment ................. 163,432 170,244 -- -- -------------- -------------- ------------- -------------- Total Purchased ................ 1,945,579,585 1,940,474,683 444,767,939 323,446,400 Shares Redeemed ................ (2,022,196,977) (1,992,763,899) (441,951,114) (337,144,368) -------------- -------------- ------------- -------------- Net Change ..................... $ (76,617,392) $ (52,289,216) $ 2,816,825 $ (13,697,968) -------------- -------------- ------------- -------------- -------------- -------------- ------------- -------------- C CLASS: NOVA URSA OTC ARKTOS FUND FUND FUND FUND -------------- -------------- ------------- -------------- Shares Purchased ............... $ 199,531,214 $ 207,245,885 $ 80,542,738 $ 82,697,464 Purchased through Dividend Reinvestment ................. -- 64,474 -- 74,919 -------------- -------------- ------------- -------------- Total Purchased ................ 199,531,214 207,310,359 80,542,738 82,772,383 Shares Redeemed ................ (190,906,083) (197,104,992) (74,793,804) (81,654,290) -------------- -------------- ------------- -------------- Net Change ..................... $ 8,625,131 $ 10,205,367 $ 5,748,934 $ 1,118,093 -------------- -------------- ------------- -------------- -------------- -------------- ------------- -------------- U.S. GOVERNMENT MEDIUS MEKROS BOND JUNO FUND FUND FUND FUND ------------ ------------ --------------- -------------- Shares Purchased ............... $118,906,006 $231,755,936 $ 25,084,987 $109,619,631 Purchased through Dividend Reinvestment ................. 19,612 9,480 35,384 7,287 ------------ ------------ --------------- -------------- Total Purchased ................ 118,925,618 231,765,416 25,120,371 109,626,918 Shares Redeemed ................ (112,097,599) (234,108,252) (23,220,202) (48,058,380) ------------ ------------ --------------- -------------- Net Change ..................... $ 6,828,019 $ (2,342,836) $ 1,900,169 $ 61,568,538 ------------ ------------ --------------- -------------- ------------ ------------ --------------- --------------
SEMI-ANNUAL REPORT 133 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------------------------------------
U.S. LARGE-CAP LARGE-CAP GOVERNMENT EUROPE JAPAN MONEY FUND FUND MARKET FUND ----------- ----------- -------------- Shares Purchased ........... $26,738,406 $ 5,902,412 $2,555,257,130 Purchased through Dividend Reinvestment ............. -- -- 80,795 ----------- ----------- -------------- Total Purchased ............ 26,738,406 5,902,412 2,555,337,925 Shares Redeemed ............ (24,610,760) (5,745,360) (2,401,512,601) ----------- ----------- -------------- Net Change ................. $ 2,127,646 $ 157,052 $ 153,825,324 ----------- ----------- -------------- ----------- ----------- -------------- INSTITUTIONAL CLASS: U.S. GOVERNMENT MONEY MARKET FUND ------------ Shares Purchased ........... $ 70,000,000 Purchased through Dividend Reinvestment ............. 63,341 ------------ Total Purchased ............ 70,063,341 Shares Redeemed ............ (10,055,171) ------------ Net Change ................. $ 60,008,170 ------------ ------------
9. NET ASSETS At September 30, 2003, net assets consisted of:
NOVA FUND URSA FUND OTC FUND ARKTOS FUND ------------ ------------ -------------- ------------ Paid-In Capital ...................... $316,441,195 $750,662,646 $1,598,716,347 $356,087,451 Undistributed Net Investment Loss .................... (565,598) (3,202,593) (4,341,547) (378,049) Accumulated Net Realized Loss on Investments, Options, Equity Index Swaps, and Futures Contracts .................. (95,179,601) (103,725,956) (1,044,326,612) (101,118,907) Net Unrealized Appreciation (Depreciation) on Investments, Options, Equity Index Swaps, and Futures Contracts ............. (2,258,803) (5,377,917) 296,161,977 (6,842,560) ------------ ------------ -------------- ------------ Net Assets ........................... $218,437,193 $638,356,180 $ 846,210,165 $247,747,935 ------------ ------------ -------------- ------------ ------------ ------------ -------------- ------------
134 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------------------------------------
U.S. GOVERNMENT MEDIUS FUND MEKROS FUND BOND FUND JUNO FUND ----------- ------------ ----------- ------------ Paid-In Capital ....................... $36,708,326 $ 97,583,286 $86,303,497 $692,799,223 Undistributed Net Investment Income (Loss) ............ (149,442) (714,239) 181,492 (1,716,602) Accumulated Net Realized Gain (Loss) on Investments, Options, Equity Index Swaps, and Futures Contracts ................... (8,714,918) 15,052,007 (12,451,577) (6,216,578) Net Unrealized Appreciation (Depreciation) on Investments, Equity Index Swaps, Options and Futures Contracts ............... 3,654,612 517,424 4,950,689 (10,558,395) ----------- ------------ ----------- ------------ Net Assets ............................ $31,498,578 $112,438,478 $78,984,101 $674,307,648 ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------ U.S. LARGE-CAP LARGE-CAP GOVERNMENT EUROPE JAPAN MONEY FUND FUND MARKET FUND ------------ ----------- -------------- Paid-In Capital ....................... $2,966,834 $64,604,706 $1,738,526,870 Undistributed Net Investment Income (Loss) ....................... (168,350) (61,315) -- Accumulated Net Realized Gain (Loss) on Investments, Equity Index Swaps, and Futures Contracts ........................... 3,439,826 2,555,890 (464,513) Net Unrealized Appreciation (Depreciation) on Investments, Equity Index Swaps and Futures Contracts ................... (78,947) 1,407,567 -- ------------ ----------- -------------- Net Assets ............................ $6,159,363 $68,506,848 $1,738,062,357 ------------ ----------- -------------- ------------ ----------- --------------
SEMI-ANNUAL REPORT 135 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO MASTER MASTER MASTER MASTER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ -------------- ------------ ------------ Paid-In Capital .......... $474,843,753 $1,124,820,647 $426,820,202 $696,175,111 Undistributed Net Investment Income (Loss) 785,862 (13,401) 5,513,922 (8,800,888) Accumulated Net Realized Loss on Investments, Equity Index Swaps, Options, and Futures Contracts .. (276,471,444) (500,971,236) (188,916,921) (28,964,293) Net Unrealized Appreciation on Investments, Options, Equity Index Swaps and Futures Contracts .. 19,308,034 14,586,683 4,312,983 15,970,404 ------------ -------------- ------------ ------------ Net Assets ............... $218,466,205 $ 638,422,693 $247,730,186 $674,380,334 ------------ -------------- ------------ ------------ ------------ -------------- ------------ ------------
10. PORTFOLIO SECURITIES LOANED The Trust lends its securities to approved brokers to earn additional income. Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the agent, and other approved registered broker dealers act as the borrowers. The Trust receives cash collateral, valued at 102% of the value of the securities on loan, which is initially held in a segregated account at U.S. Bank. As agent, U.S. Bank may, for investment purposes, pool the Trust's collateral in joint accounts with cash collateral from one or more other securities lending customers of U.S. Bank. Under the terms of the Trust's securities lending agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in certain high quality, liquid investments. At September 30, 2003, the pooled cash collateral investments consisted of repurchase agreements (78.46%), commercial paper (11.99%), fixed income notes (9.43%), and money market mutual funds (0.12%). Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. The Trust holds the cash collateral in a segregated account at its custodian bank. Although the collateral mitigates risk, the Trust could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Trust has the right under the securities lending agreement to recover the securities from the borrower on demand. At September 30, 2003 the following funds participated in securities lending and received cash collateral: FUND CASH COLLATERAL VALUE OF SECURITIES LOANED ---- --------------- -------------------------- OTC Fund $350,230,686 $330,110,921 Medius Fund 5,309,643 5,089,862 Mekros Fund 6,823,343 6,339,610 U.S. Government Money Market Fund 160,000,000 159,712,000 Nova Master Portfolio 49,741,480 47,441,985 136 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) -------------------------------------------------------------------------------- 11. LARGE-CAP JAPAN FUND REVERSE STOCK SPLIT Effective April 21, 2003, the Large-Cap Japan Fund, H Class shares and C Class shares, underwent a 1-for-3 reverse split. The effect of this transaction was to divide the number of outstanding shares by three, while multiplying the net asset value per share by three. There was no change in the aggregate market value of the outstanding shares as a result of this transaction. 12. CHANGE IN INDEPENDENT AUDITORS Effective August 25, 2003, the Trust has retained PricewaterhouseCoopers LLP to serve as the Trust's independent auditors. 13. PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC's site at http://www.sec.gov. SEMI-ANNUAL REPORT 137 -------------------------------------------------------------------------------- This page intentionally left blank. [LOGO OMITTED] Rydex Investments Essential for modern markets [TM] 9601 Blackwell Road Suite 500 Rockville,MD 20850 800.820.0888 www.rydexfunds.com THE RYDEX SERIES FUNDS -------------------------------------------------------------------------------- Sector Funds Semi-Annual Report September 30, 2003 Banking Fund Basic Materials Fund Biotechnology Fund Consumer Products Fund Electronics Fund Energy Fund Energy Services Fund Financial Services Fund Health Care Fund Internet Fund Leisure Fund Precious Metals Fund Retailing Fund Technology Fund Telecommunications Fund Transportation Fund Utilities Fund [LOGO OMITTED] Rydex Investments Essential for modern markets[TM] RFSSA-3-11/03 This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Distributed by Rydex Distributors, Inc. SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS ........................................ 2 SCHEDULES OF INVESTMENTS .......................................... 3 STATEMENTS OF ASSETS AND LIABILITIES .............................. 36 STATEMENTS OF OPERATIONS .......................................... 40 STATEMENTS OF CHANGES IN NET ASSETS ............................... 44 FINANCIAL HIGHLIGHTS .............................................. 54 NOTES TO FINANCIAL STATEMENTS ..................................... 140 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER: The period April 1 through September 30, 2003 can be characterized by remarkable resilience in the financial markets and cautious optimism on the economy. Having started the period in a time of high geopolitical uncertainty and weak economic activity, the markets returned double-digit gains across the board. Most notable in the rally was the solid outperformance of the technology sector and small-capitalization stocks. For the period, small-cap stocks, as measured by the Russell 2000(R), outperformed the predominantly large-cap S&P 500(R) by an incredible 16.17%, returning 34.62% and 18.45%, respectively. Similarly, the tech-heavy Nasdaq 100(R) returned 27.98%, beating the S&P 500 by 9.53%. The mutual fund industry was rocked by revelations of trading abuses by corporate executives and fund managers, as well as disclosure of special deals for top customers. The charges and allegations as presented by New York Attorney General, Eliot Spitzer, represent a serious breach of fiduciary duty and are almost certain to bring regulatory changes to the industry. The term "market-timing" has, unfortunately, taken the connotation of illicit investor behavior. However, we believe that funds designed to accommodate active trading can be an important tool in a tactical asset allocation strategy provided trading activity is monitored and the rules to protect current shareholders are strictly enforced. Investor optimism and positive news regarding cancer-fighting drugs helped spur the biotechnology sector as Rydex Biotechnology Fund rose 36.36% for the period. Technology, electronics and internet stocks all outpaced the broader market. Tax credits and home mortgage refinancing increased consumer discretionary income boosting the Rydex Retailing Fund by 28.25%. In the strong, upward trending market of the last two quarters, Rydex inverse funds performed as expected, generating corresponding losses to their respective benchmarks. Rydex Ursa Fund was down 16.23%, corresponding to an 18.45% increase in the S&P 500. Similarly, Rydex Arktos Fund fell 23.76% while the Nasdaq 100 increased 27.98%. (Ursa Fund and Arktos Fund are part of the Rydex Benchmark Funds and are reported on separately.) On the fixed-income side, uneven reports of a stronger economy, positive and negative unemployment data and increasing bond issuance led to volatility in the Treasury market throughout the period. On June 16, when the Long Bond yield hit a low of 4.17%, more positive economic data and improving investor sentiment initiated an upward trend in rates that topped out on August 15 at 5.45%. Further uncertainty surrounding the labor market pushed yields lower. Despite the fixed-income market's lack of direction, the Long Bond yielded 4.88% on September 30, 2003, closely matching the 4.82% yield recorded on March 31, 2003. The outlook for higher interest rates and the speculation of a "bond bubble" has led to increased inflows to Rydex Juno Fund. Juno's assets reached $674.3 million at the end of the third quarter up from $189.9 million at March 31, 2003. This inverse bond fund is an option for investors to speculate on rising interest rates or to protect fixed-income holdings in a rising interest rate environment. (Juno Fund is part of the Rydex Benchmark Funds and is reported on separately.) Staging a surprising comeback were the stocks of European and Japanese companies, which have been conspicuously under performing in recent years. Rydex Large-Cap Europe Fund rose 29.76% reflecting improving fundamentals and a strong Euro versus the U.S. dollar. Rydex Large-Cap Japan rose an astounding 43.10% for the period reflecting improvements in Japanese domestic growth and growing global investor confidence. (Large-Cap Europe Fund and Large-Cap Japan Fund are part of the Rydex Benchmark Funds and are reported on separately.) Times such as these can be challenging for investors. At Rydex Investments, we acknowledge and appreciate the trust you have placed in our firm's quality and integrity by investing with us. Sincerely, /S/ CARL G. VERBONCOEUR Carl G. Verboncoeur Chief Executive Officer Rydex Investments SEMI-ANNUAL REPORT 3 BANKING FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 99.3% Wells Fargo & Co. .... 8,516 $ 438,574 Bank of America Corp. 5,448 425,162 Wachovia Corp. ....... 9,216 379,607 Bank One Corp. ....... 8,966 346,536 Washington Mutual, Inc.+ 8,189 322,401 FleetBoston Financial Corp. .............. 10,375 312,806 J.P. Morgan Chase & Co.+ 9,009 309,279 U.S. Bancorp+ ........ 10,225 245,298 National City Corp. .. 8,242 242,809 M&T Bank Corp. ....... 2,370 206,901 Regions Financial Corp. 5,640 193,170 Charter One Financial, Inc. ............... 6,285 192,321 KeyCorp .............. 7,470 191,008 Union Planters Corp. . 5,818 184,082 Huntington Bancshares, Inc. ............... 8,750 173,162 First Tennessee National Corp. .............. 3,900 165,594 Bank of New York Co., Inc. ............... 5,680 165,345 PNC Financial Services Group, Inc. ........ 3,460 164,627 Hibernia Corp.cClass A 7,600 153,976 Downey Financial Corp. 3,200 149,536 Silicon Valley Bancshares* ........ 5,400 149,202 Webster Financial Corp. 3,600 143,568 Colonial BancGroup, Inc.+ .............. 9,680 139,779 Provident Financial Group, Inc. ............... 4,945 138,262 South Financial Group, Inc. ............... 5,420 134,904 Fifth Third Bancorp .. 2,385 132,296 Whitney Holding Corp. 3,870 131,580 MAF Bancorp, Inc. .... 3,287 125,563 Staten Island Bancorp, Inc. ............... 6,400 124,480 Dime Community Bancshares ......... 5,000 115,000 Chittenden Corp. ..... 3,500 104,125 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Hudson City Bancorp, Inc. ............... 3,280 $ 101,155 Seacoast Financial Services Corp. .............. 4,400 91,124 Riggs National Corp. . 5,725 90,169 Park National Corp. .. 800 89,520 Valley National Bancorp 3,096 86,193 Fulton Financial Corp. 4,083 81,987 Commerce Bancorp, Inc./NJ+ ........... 1,700 81,447 Commerce Bancshares, Inc. ............... 1,855 81,156 Radian Group, Inc. ... 1,800 79,920 MGIC Investment Corp.+ 1,500 78,105 BB&T Corp. ........... 2,173 78,032 SunTrust Banks, Inc. . 1,241 74,919 Northern Trust Corp. . 1,700 72,148 United Bankshares, Inc. 2,388 71,521 GBC Bancorp/CA ....... 1,800 69,030 Citigroup, Inc. ...... 1,490 67,810 Susquehanna Bancshares, Inc. ............... 2,540 65,278 Popular, Inc. ........ 1,620 64,476 Trustmark Corp. ...... 2,370 64,298 Banknorth Group, Inc. 2,244 63,326 Golden West Financial Corp. .............. 700 62,657 Anchor BanCorp Wisconsin, Inc. .... 2,600 61,048 BancorpSouth, Inc. ... 2,750 60,225 Compass Bancshares, Inc. 1,740 60,169 W Holding Co., Inc. .. 3,288 58,855 Texas Regional Bancshares, Inc.--Class A ...... 1,695 57,274 Boston Private Financial Holdings, Inc. ..... 2,300 54,188 Comerica, Inc. ....... 1,040 48,464 Mercantile Bankshares Corp. .............. 1,200 48,000 Pacific Capital Bancorp 1,470 44,820 Fremont General Corp. 3,330 42,324 Republic Bancorp, Inc./MI ............ 3,030 40,360 Flagstar Bancorp, Inc. 1,700 39,015 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. 4 BANKING FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------------------------- SouthTrust Corp. ..................................... 1,300 $ 38,207 UnionBanCal Corp. .................................... 720 35,712 Citizens Banking Corp./MI ............................ 1,280 33,805 Zions Bancorporation ................................. 600 33,510 Pacific Northwest Bancorp ............................ 900 32,085 Sky Financial Group, Inc. ............................ 1,380 31,064 Marshall & Ilsley Corp. .............................. 900 28,368 Synovus Financial Corp. .............................. 1,000 24,990 Independence Community Bank Corp. .................... 700 24,451 North Fork Bancorporation, Inc. ...................... 600 20,850 PFF Bancorp, Inc. .................................... 646 20,594 Wintrust Financial Corp. ............................. 500 18,835 Greater Bay Bancorp+ ................................. 850 17,680 AmSouth Bancorporation+ .............................. 800 16,976 Provident Bankshares Corp. ........................... 538 15,198 People's Bank/Bridgeport CT .......................... 500 14,970 New Century Financial Corp. .......................... 500 14,160 FirstFed Financial Corp.* ............................ 341 13,470 Mellon Financial Corp. ............................... 300 9,042 Sovereign Bancorp, Inc.+ ............................. 470 8,719 National Commerce Financial Corp. .................... 200 4,976 ---------- TOTAL COMMON STOCKS (Cost $7,691,205) .................................. 9,087,628 ---------- FACE AMOUNT ------- REPURCHASE AGREEMENTS 0.7% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $14,331 14,331 0.94% due 10/01/03 ................................. 1,020 1,020 0.93% due 10/01/03 ................................. 14,331 14,331 0.91% due 10/01/03 ................................. 14,331 14,331 0.90% due 10/01/03 ................................. 20,231 20,231 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $64,244) ..................................... 64,244 ---------- TOTAL INVESTMENTS 100% (Cost $7,755,449) .................................. $9,151,872 ---------- ---------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 5 BASIC MATERIALS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 97.9% Dow Chemical Co. ..... 9,937 $ 323,350 EI Du Pont de Nemours & Co. .............. 7,183 287,392 Alcoa, Inc.+ ......... 10,675 279,258 International Paper Co.+ 6,877 268,341 Weyerhaeuser Co.+ .... 3,921 229,182 Praxair, Inc. ........ 3,301 204,497 PPG Industries, Inc. . 3,660 191,125 Newmont Mining Corp.+ 4,879 190,720 Georgia-Pacific Corp. 7,496 181,703 Freeport-McMoRan Copper & Gold, Inc.--Class B+ ..... 5,192 171,855 Monsanto Co.+ ........ 7,144 171,027 Air Products & Chemicals, Inc.+ .............. 3,385 152,663 Engelhard Corp. ...... 5,018 138,848 Ball Corp. ........... 2,477 133,758 Ecolab, Inc.+ ........ 5,260 132,815 Sigma-Aldrich Corp.+ . 2,487 129,175 Eastman Chemical Co.+ 3,532 118,322 Bemis Co. ............ 2,561 113,452 Rohm & Haas Co. ...... 3,329 111,355 Sealed Air Corp.*+ ... 2,305 108,865 Louisiana-Pacific Corp.* 7,843 108,077 Cabot Corp. .......... 3,771 107,511 Scotts Co.--Class A* . 1,960 107,212 International Flavors & Fragrances, Inc. ... 3,239 107,146 Cytec Industries, Inc.* 2,739 99,974 Pactiv Corp.* ........ 4,816 97,668 Airgas, Inc. ......... 5,329 94,856 Martin Marietta Materials, Inc. ............... 2,562 93,385 FMC Corp.* ........... 3,565 89,838 Albemarle Corp. ...... 3,254 89,322 Great Lakes Chemical Corp. .............. 4,289 86,252 Georgia Gulf Corp.+ .. 3,686 86,068 Potlatch Corp. ....... 2,826 83,989 Worthington Industries, Inc. ............... 6,591 82,783 Phelps Dodge Corp.* .. 1,736 81,245 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- MeadWestvaco Corp.+ .. 3,163 $ 80,657 Steel Dynamics, Inc.*+ 5,252 79,515 Olin Corp.+ .......... 5,005 79,179 Florida Rock Industries, Inc. ............... 1,530 75,888 Massey Energy Co. .... 5,566 74,028 Vulcan Materials Co. . 1,846 73,674 IMC Global, Inc. ..... 11,464 73,484 Schulman A, Inc. ..... 4,500 71,370 Minerals Technologies, Inc.+ .............. 1,344 68,410 Nucor Corp.+ ......... 1,318 60,470 Aptargroup, Inc. ..... 1,633 59,915 United States Steel Corp.+ ............. 3,132 57,566 MacDermid, Inc. ...... 2,141 56,629 HB Fuller Co. ........ 2,300 55,821 Temple-Inland, Inc. .. 1,115 54,133 OM Group, Inc.* ...... 3,525 51,606 Bowater, Inc.+ ....... 1,191 50,093 Wellman, Inc. ........ 6,520 48,965 Valspar Corp. ........ 949 44,271 Carpenter Technology Corp. .............. 1,991 42,687 Longview Fibre Co. ... 4,066 39,725 Packaging Corp. of America* ........ 2,030 39,423 Lyondell Chemical Co. 3,045 38,915 Commercial Metals Co. 2,040 37,475 Arch Chemicals, Inc. . 1,800 37,440 Sonoco Products Co. .. 1,641 36,020 Rayonier, Inc. ....... 877 35,606 Buckeye Technologies, Inc.* .............. 3,810 34,633 Rock-Tenn Co.--Class A 2,336 34,059 Lubrizol Corp. ....... 1,022 33,164 Boise Cascade Corp.+ . 1,145 31,602 Deltic Timber Corp. .. 1,080 31,234 Century Aluminum Co.* 2,800 30,380 Myers Industries, Inc. 2,900 29,029 Crompton Corp. ....... 4,621 26,848 RPM International, Inc. 2,033 26,551 Peabody Energy Corp. . 840 26,351 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. 6 BASIC MATERIALS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------------------------- Brush Engineered Materials, Inc.* .................... 2,300 $ 23,575 Hercules, Inc.* ...................................... 2,073 23,487 Quaker Chemical Corp. ................................ 1,000 23,260 Ryerson Tull, Inc. ................................... 2,750 21,450 Arch Coal, Inc.+ ..................................... 876 19,456 Penford Corp. ........................................ 1,400 18,200 Allegheny Technologies, Inc. ......................... 2,683 17,574 Steel Technologies, Inc. ............................. 1,315 16,372 IMCO Recycling, Inc.* ................................ 2,500 15,375 Commonwealth Industries, Inc. ........................ 3,000 14,250 Ferro Corp. .......................................... 557 11,898 AM Castle & Co.* ..................................... 2,500 11,100 AK Steel Holding Corp.* .............................. 4,604 9,208 Cambrex Corp. ........................................ 350 7,945 Quanex Corp. ......................................... 220 7,392 Wausau-Mosinee Paper Corp. ........................... 569 6,947 PolyOne Corp. ........................................ 1,115 4,382 Texas Industries, Inc. ............................... 100 2,460 RTI International Metals, Inc.* ...................... 102 1,073 ---------- TOTAL COMMON STOCKS (Cost $6,235,684) .................................. 7,135,249 ---------- FACE AMOUNT ------- REPURCHASE AGREEMENTS 2.1% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $34,188 34,188 0.94% due 10/01/03 ................................. 2,433 2,433 0.93% due 10/01/03 ................................. 34,188 34,188 0.91% due 10/01/03 ................................. 34,188 34,188 0.90% due 10/01/03 ................................. 48,265 48,265 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $153,262) .................................... 153,262 ---------- TOTAL INVESTMENTS 100% (Cost $6,388,946) .................................. $7,288,511 ---------- ---------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 7 BIOTECHNOLOGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 100.0% Amgen, Inc.*+ ........ 283,543 $ 18,308,372 Genentech, Inc.*+ .... 166,325 13,329,285 Gilead Sciences, Inc.*+ ............. 136,910 7,657,376 Genzyme Corp.*+ ...... 157,627 7,290,249 Serono SA--SP ADR .... 383,086 6,274,949 Biogen, Inc.* ........ 160,012 6,117,259 Celgene Corp.*+ ...... 140,874 6,104,070 Cephalon, Inc.*+ ..... 107,498 4,936,308 Millennium Pharmaceuticals, Inc.*+ ............. 305,178 4,696,689 Chiron Corp.*+ ....... 84,497 4,367,650 ICOS Corp.*+ ......... 107,847 4,132,697 Affymetrix, Inc.* .... 177,600 3,727,824 Alkermes, Inc.*+ ..... 264,399 3,627,554 Abgenix, Inc.*+ ...... 235,670 3,414,858 MedImmune, Inc.*+ .... 101,301 3,343,946 Human Genome Sciences, Inc.*+ ............. 241,126 3,293,781 Neurocrine Biosciences, Inc.*+ ............. 63,200 3,129,664 InterMune, Inc.* ..... 160,635 3,064,916 ImClone Systems, Inc.*+ 76,525 2,963,048 Enzon Pharmaceuticals, Inc.* .............. 233,293 2,715,531 OSI Pharmaceuticals, Inc.*+ ............. 82,216 2,669,554 Geron Corp.*+ ........ 187,600 2,570,120 IDEXX Laboratories, Inc.*+ ............. 58,640 2,491,614 Regeneron Pharmaceuticals, Inc.* .............. 141,000 2,491,470 Martek Biosciences Corp.*+ ............ 46,300 2,438,621 IDEC Pharmaceuticals Corp.*+ ............ 73,006 2,420,149 Gen-Probe, Inc.* ..... 44,000 2,383,480 QLT, Inc.*+ .......... 134,643 2,150,249 Cell Therapeutics, Inc.*+ ............. 187,094 2,127,259 Charles River Laboratories International, Inc.* 69,100 2,120,679 Invitrogen Corp.*+ ... 35,433 2,054,760 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Vertex Pharmaceuticals, Inc.*+ ............. 158,737 $ 1,952,465 Medarex, Inc.*+ ...... 311,400 1,846,602 Dendreon Corp.* ...... 203,401 1,800,099 Applera Corp.--Celera Genomics Group* .... 153,239 1,791,364 Enzo Biochem, Inc.* .. 82,797 1,615,369 Amylin Pharmaceuticals, Inc.*+ ............. 56,675 1,600,502 BioMarin Pharmaceutical, Inc.* .............. 205,315 1,572,713 Connetics Corp.* ..... 84,150 1,519,749 Cell Genesys, Inc.* .. 119,018 1,497,246 Corixa Corp.*+ ....... 187,849 1,495,278 ILEX Oncology, Inc.*+ 86,928 1,443,874 Telik, Inc.* ......... 70,400 1,411,520 Onyx Pharmaceuticals, Inc.* .............. 64,633 1,392,841 Tularik, Inc.* ....... 138,661 1,367,197 Digene Corp.*+ ....... 30,800 1,258,488 Isis Pharmaceuticals, Inc.* .............. 190,059 1,239,185 Exelixis, Inc.* ...... 171,636 1,225,481 SciClone Pharmaceuticals, Inc.* .............. 148,178 1,170,606 Transkaryotic Therapies, Inc.* .............. 108,311 1,131,850 Indevus Pharmaceuticals, Inc.* .............. 209,794 1,122,398 Cubist Pharmaceuticals, Inc.* .............. 87,716 946,456 Albany Molecular Research, Inc.*+ ............. 62,600 927,106 ID Biomedical Corp.* . 47,000 822,030 Pharmacopeia, Inc.* .. 62,294 791,072 Emisphere Technologies, Inc.* .............. 98,032 711,712 Gene Logic, Inc.* .... 150,136 705,639 NeoPharm, Inc.*+ ..... 42,296 634,440 Caliper Technologies Corp. NMS* ............... 88,566 553,538 Techne Corp.* ........ 14,500 460,955 Novavax, Inc.* ....... 52,526 385,541 Diversa Corp.* ....... 48,844 378,541 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 8 BIOTECHNOLOGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ------------------------------------------------------------------------------ CuraGen Corp.* ....................................... 69,314 $ 348,649 Genta, Inc.*+ ........................................ 25,675 325,302 Luminex Corp.*+ ...................................... 48,028 324,189 Tanox, Inc.* ......................................... 15,732 314,797 Serologicals Corp.* .................................. 18,400 241,960 Antigenics, Inc.*+ ................................... 19,714 240,511 Avigen, Inc.* ........................................ 44,237 230,032 Nektar Therapeutics* ................................. 15,549 199,027 NPS Pharmaceuticals, Inc.* ........................... 6,436 179,243 XOMA Ltd.* ........................................... 23,545 174,233 ImmunoGen, Inc.* ..................................... 38,433 171,027 Atrix Laboratories, Inc.* ............................ 6,026 124,075 ------------ TOTAL COMMON STOCKS (Cost $136,780,144) ................................ 178,058,883 ------------ TOTAL INVESTMENTS 100% (Cost $136,780,144) ................................ $178,058,883 ------------ ------------ * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 9 CONSUMER PRODUCTS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 99.2% Procter & Gamble Co.+ 11,116 $ 1,031,787 Altria Group, Inc. ... 20,640 904,032 PepsiCo, Inc. ........ 19,597 898,131 Coca-Cola Co. ........ 18,970 814,951 Colgate-Palmolive Co.+ 10,774 602,159 Anheuser-Busch Cos., Inc.+ .............. 11,661 575,354 eBay, Inc.*+ ......... 9,708 519,475 General Mills, Inc. .. 10,948 515,322 Kraft Foods, Inc.-- Class A+ ........... 16,853 497,163 H.J. Heinz Co. ....... 13,868 475,395 Clorox Co. ........... 9,962 456,957 Wm. Wrigley Jr. Co. .. 8,071 446,326 Cendant Corp.*+ ...... 19,905 372,024 Dean Foods Co.* ...... 11,552 358,459 McCormick & Co., Inc. 12,600 345,492 Hormel Foods Corp. ... 14,300 328,614 Dial Corp. ........... 14,900 320,946 Constellation Brands, Inc.-- Class A* ........... 10,500 320,145 J.M. Smucker Co. ..... 7,500 316,200 Rent-A-Center, Inc.* . 9,407 303,846 Dreyer's Grand Ice Cream Holdings, Inc. ..... 3,900 303,264 Kimberly-Clark Corp. . 5,770 296,116 Lancaster Colony Corp. 7,200 286,344 Church & Dwight Co., Inc. ............... 7,968 278,800 Apollo Group, Inc.-- Class A*+ .......... 4,087 269,865 Universal Corp./Richmond VA ................. 6,400 269,632 Gillette Co. ......... 8,247 263,739 Winn-Dixie Stores, Inc. 27,300 263,445 Hershey Foods Corp. .. 3,089 224,509 Weight Watchers International, Inc.* 5,162 214,739 Career Education Corp.* 4,634 209,920 H&R Block, Inc.+ ..... 4,747 204,833 WD-40 Co. ............ 6,400 202,816 Schweitzer-Mauduit International, Inc. 7,800 196,950 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- DIMON, Inc. .......... 27,500 $ 189,750 Lance, Inc. .......... 18,800 186,872 ConAgra Foods, Inc. .. 8,774 186,360 Walgreen Co. ......... 6,000 183,840 Sysco Corp.+ ......... 5,548 181,475 Avon Products, Inc. .. 2,756 177,927 Duane Reade, Inc.* ... 11,100 177,045 Kroger Co.* .......... 9,717 173,643 Fortune Brands, Inc. . 2,836 160,943 Interstate Bakeries Corp. .............. 9,900 148,500 Performance Food Group Co.*+ .............. 3,600 146,556 ITT Educational Services, Inc.* .............. 2,986 143,089 Corinthian Colleges, Inc.* .............. 2,498 142,786 Newell Rubbermaid, Inc.+ .............. 6,537 141,657 Tyson Foods, Inc.-- Class A+ ........... 9,600 135,648 ServiceMaster Co. .... 12,081 123,951 Black & Decker Corp. . 2,993 121,366 United Rentals, Inc.*+ 7,498 120,643 Tootsie Roll Industries, Inc. ............... 3,800 117,800 Stanley Works ........ 3,854 113,770 Sara Lee Corp. ....... 6,132 112,584 Priceline.com, Inc.* . 3,878 112,423 Estee Lauder Cos., Inc.-- Class A ............ 3,286 112,053 Kellogg Co. .......... 3,239 108,021 Sylvan Learning Systems, Inc.*+ ............. 3,879 105,819 DeVry, Inc.* ......... 4,143 98,023 Education Management Corp.* ............. 1,694 97,693 Energizer Holdings, Inc.* .............. 2,500 91,925 Safeway, Inc.* ....... 3,791 86,966 Service Corp. International/US* .. 18,485 84,476 Casey's General Stores, Inc. ............... 5,449 76,449 Archer-Daniels-Midland Co. ................ 5,722 75,015 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. 10 CONSUMER PRODUCTS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------------------------- SUPERVALU, Inc. ...................................... 3,000 $ 71,580 Snap-on, Inc. ........................................ 2,496 69,014 Nash Finch Co. ....................................... 4,400 68,200 Campbell Soup Co. .................................... 2,571 68,131 Whole Foods Market, Inc.* ............................ 1,100 60,698 Stewart Enterprises, Inc.--Class A* .................. 15,685 59,603 Sotheby's Holdings, Inc.--Class A* ................... 5,279 57,119 Ralcorp Holdings, Inc.* .............................. 2,000 55,400 Scotts Co.--Class A* ................................. 959 52,457 Brown-Forman Corp.--Class B .......................... 600 47,472 Coca-Cola Enterprises, Inc.+ ......................... 2,185 41,646 Tupperware Corp. ..................................... 2,987 39,966 Flowers Foods, Inc. .................................. 1,700 38,760 Albertson's, Inc.+ ................................... 1,843 37,911 R.J. Reynolds Tobacco Holdings, Inc. ................. 751 29,695 Pepsi Bottling Group, Inc. ........................... 1,389 28,586 Robert Mondavi Corp.--Class A* ....................... 900 27,882 Wild Oats Markets, Inc.* ............................. 2,500 27,325 Blyth, Inc. .......................................... 889 23,985 Pre-Paid Legal Services, Inc.*+ ...................... 1,023 23,959 Krispy Kreme Doughnuts, Inc.* ........................ 569 21,907 Sensient Technologies Corp. .......................... 900 18,900 Learning Tree International, Inc.* ................... 1,127 18,900 Wal-Mart Stores, Inc. ................................ 300 16,755 CVS Corp. ............................................ 522 16,213 ----------- TOTAL COMMON STOCKS (Cost $17,666,495) ................................. 19,144,882 ----------- FACE AMOUNT -------- REPURCHASE AGREEMENTS 0.8% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $34,715 34,715 0.94% due 10/01/03 ................................. 2,471 2,471 0.93% due 10/01/03 ................................. 34,715 34,715 0.91% due 10/01/03 ................................. 34,715 34,715 0.90% due 10/01/03 ................................. 49,010 49,010 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $155,626) .................................... 155,626 ----------- TOTAL INVESTMENTS 100% (Cost $17,822,121) ................................. $19,300,508 ----------- ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 ELECTRONICS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 97.3% Intel Corp. .......... 229,879 $ 6,323,971 Texas Instruments, Inc. ............... 110,518 2,519,810 Applied Materials, Inc.*+ ............. 128,764 2,335,779 Analog Devices, Inc.*+ 51,756 1,967,763 Maxim Integrated Products, Inc.+ .... 43,504 1,718,408 Xilinx, Inc.*+ ....... 56,636 1,614,692 KLA-Tencor Corp.*+ ... 31,042 1,595,559 Linear Technology Corp. 44,343 1,587,923 Altera Corp.* ........ 81,225 1,535,152 Microchip Technology, Inc.+ .............. 53,028 1,269,490 National Semiconductor Corp.*+ ............ 37,870 1,222,822 Teradyne, Inc.*+ ..... 52,800 982,080 Lam Research Corp.*+ . 42,650 944,697 Cabot Microelectronics Corp.*+ ............ 16,318 909,565 LSI Logic Corp.*+ .... 98,572 886,162 QLogic Corp.*+ ....... 18,459 867,758 Novellus Systems, Inc.*+ ............. 25,469 859,579 Integrated Device Technology, Inc.* .. 67,734 841,256 Cypress Semiconductor Corp.*+ ............ 45,895 811,424 Silicon Laboratories, Inc.*+ ............. 16,667 749,182 Micron Technology, Inc.*+ ............. 55,013 738,274 Atmel Corp.* ......... 179,787 720,946 Advanced Micro Devices, Inc.*+ ............. 64,600 717,706 Intersil Corp.-- Class A* ........... 29,482 701,672 International Rectifier Corp.*+ ............ 17,000 636,480 Broadcom Corp.-- Class A*+ .......... 21,838 581,328 NVIDIA Corp.*+ ....... 36,315 577,808 Photronics, Inc.*+ ... 27,056 575,211 Cymer, Inc.*+ ........ 13,880 571,856 Power Integrations, Inc.* .............. 15,697 521,768 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- United Microelectronics Corp.--SP ADR*+ .... 102,812 $ 463,682 Brooks Automation, Inc.* .............. 22,000 459,800 Applied Micro Circuits Corp.* ............. 92,924 452,540 Ultratech, Inc.* ..... 15,890 448,416 Infineon Technologies AG--SP ADR* ........ 34,700 447,283 Skyworks Solutions, Inc.*+ ............. 48,838 444,426 Marvell Technology Group Ltd.* .............. 11,589 437,485 DSP Group, Inc.* ..... 14,849 369,889 Standard Microsystems Corp.* ............. 12,720 343,186 Kulicke & Soffa Industries, Inc.* .............. 30,803 333,904 Actel Corp.*+ ........ 13,230 317,123 Agere Systems, Inc.--Class A*+ .... 95,200 292,264 Lattice Semiconductor Corp.* ............. 40,177 285,658 Kopin Corp.* ......... 40,703 282,072 Helix Technology Corp. 17,049 279,092 Rudolph Technologies, Inc.* .............. 14,273 275,612 Exar Corp.* .......... 18,722 264,542 Semtech Corp.*+ ...... 13,998 258,403 Microsemi Corp.* ..... 16,583 252,725 Vitesse Semiconductor Corp.* ............. 33,700 215,680 STMicroelectronics NV 8,594 206,686 RF Micro Devices, Inc.*+ ............. 22,000 204,380 OmniVision Technologies, Inc.*+ ............. 4,724 199,542 Integrated Circuit Systems, Inc.* .............. 6,400 192,256 MKS Instruments, Inc.* 8,569 185,605 Supertex, Inc.* ...... 9,992 179,256 Alliance Semiconductor Corp.* ............. 32,774 178,291 PMC--Sierra, Inc.*+ .. 10,083 133,005 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 12 ELECTRONICS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------------------------- Fairchild Semiconductor International, Inc.*+ .............................. 7,800 $ 129,324 Three-Five Systems, Inc.* ............................ 21,300 117,363 Varian Semiconductor Equipment Associates, Inc.* ..... 1,870 70,031 ----------- TOTAL COMMON STOCKS (Cost $30,006,935) ................................. 46,605,642 ----------- FACE AMOUNT -------- REPURCHASE AGREEMENTS 2.7% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $288,793 288,793 0.94% due 10/01/03 ................................. 20,558 20,558 0.93% due 10/01/03 ................................. 288,793 288,793 0.91% due 10/01/03 ................................. 288,793 288,793 0.90% due 10/01/03 ................................. 407,709 407,709 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $1,294,646) .................................. 1,294,646 ----------- TOTAL INVESTMENTS 100% (Cost $31,301,581) ................................. $47,900,288 ----------- ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 ENERGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 99.0% Exxon Mobil Corp. .... 34,214 $ 1,252,232 BP PLC--SP ADR+ ..... 22,640 953,144 ChevronTexaco Corp. .. 11,474 819,817 Total SA--SP ADR+ .... 9,490 719,342 ConocoPhillips ....... 12,994 711,421 Royal Dutch Petroleum Co.+ ............... 15,270 674,934 Shell Transport & Trading Co. PLC--SP ADR .... 13,620 514,291 Anadarko Petroleum Corp. .............. 10,667 445,454 Burlington Resources, Inc. ............... 9,049 436,162 Devon Energy Corp.+ .. 8,153 392,893 Kerr-McGee Corp. ..... 8,110 362,030 EOG Resources, Inc. .. 8,570 357,712 Valero Energy Corp. .. 9,330 357,059 Amerada Hess Corp.+ .. 7,018 351,602 Repsol YPF SA--SP ADR 19,280 317,542 Pogo Producing Co.+ .. 6,990 316,507 Schlumberger Ltd.+ ... 6,530 316,052 Newfield Exploration Co.* ............... 7,600 293,132 Ashland, Inc.+ ....... 8,840 290,394 Unocal Corp.+ ........ 9,050 285,256 Tidewater, Inc. ...... 9,630 272,529 Varco International, Inc.* .............. 16,100 272,251 Patterson-UTI Energy, Inc.* .............. 9,840 266,369 Overseas Shipholding Group, Inc.+ ....... 10,015 258,888 Spinnaker Exploration Co.* ............... 10,560 253,440 Forest Oil Corp.* .... 10,540 252,433 Evergreen Resources, Inc.*+ ............. 9,300 251,100 Cabot Oil & Gas Corp. 9,300 241,800 Vintage Petroleum, Inc. 21,990 239,251 Stone Energy Corp.* .. 6,620 233,554 Oceaneering International, Inc.* .............. 9,700 228,144 Remington Oil & Gas Corp.* ............. 12,490 226,693 Nuevo Energy Co.* .... 11,560 210,045 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Cooper Cameron Corp.* 4,330 $ 200,089 TEPPCO Partners LP ... 4,900 173,362 GulfTerra Energy Partners LP ........ 4,300 172,430 Westport Resources Corp.* ............. 7,220 169,959 Chesapeake Energy Corp. 15,600 168,168 EnCana Corp. ......... 4,500 163,710 Enterprise Products Partners LP ........ 7,240 163,624 Offshore Logistics, Inc.* .............. 7,926 160,898 Premcor, Inc.* ....... 6,940 160,800 Occidental Petroleum Corp. .............. 4,550 160,297 China Petroleum & Chemical Corp.-- SP ADR ............. 5,620 153,876 Apache Corp.+ ........ 1,959 135,837 Teekay Shipping Corp. 3,100 131,130 Halliburton Co. ...... 5,350 129,738 Baker Hughes, Inc. ... 3,890 115,105 Cimarex Energy Co.* .. 5,740 112,504 Swift Energy Co.*+ ... 7,580 106,954 Marathon Oil Corp. ... 3,689 105,137 Maverick Tube Corp.* . 5,425 84,196 Cal Dive International, Inc.*+ ............. 3,414 66,368 Transocean, Inc.* .... 2,860 57,200 Unit Corp.* .......... 2,875 54,165 Murphy Oil Corp. ..... 904 53,110 Hanover Compressor Co.* 4,925 48,758 Nabors Industries Ltd.*+ 1,220 45,457 BJ Services Co.* ..... 1,330 45,446 Noble Corp.* ......... 959 32,596 GlobalSantaFe Corp. .. 1,100 26,345 Weatherford International Ltd.*+ ............. 530 20,023 XTO Energy, Inc. ..... 900 18,891 Smith International, Inc.* 490 17,630 ENSCO International, Inc. ............... 615 16,494 ------------ TOTAL COMMON STOCKS (Cost $15,820,262) . 16,643,770 ------------ * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 14 ENERGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 1.0% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $ 37,008 $ 37,008 0.94% due 10/01/03 ................................. 2,634 2,634 0.93% due 10/01/03 ................................. 37,008 37,008 0.91% due 10/01/03 ................................. 37,008 37,008 0.90% due 10/01/03 ................................. 52,245 52,245 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $165,903) .................................... 165,903 ----------- TOTAL INVESTMENTS 100% (Cost $15,986,165) ................................. $16,809,673 ----------- ----------- See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 ENERGY SERVICES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ----------------------------------------------------------------------------- COMMON STOCKS 100.0% Schlumberger Ltd.+ ................................... 36,674 $ 1,775,022 Baker Hughes, Inc.+ .................................. 42,663 1,262,398 Halliburton Co. ...................................... 42,635 1,033,899 BJ Services Co.* ..................................... 29,046 992,502 Noble Corp.* ......................................... 28,039 953,046 Weatherford International Ltd.*+ ..................... 24,950 942,611 ENSCO International, Inc.+ ........................... 34,454 924,056 Cooper Cameron Corp.* ................................ 16,078 742,964 Smith International, Inc.* ........................... 19,866 714,779 Transocean, Inc.* .................................... 35,067 701,340 Patterson-UTI Energy, Inc.*+ ......................... 24,920 674,584 Nabors Industries Ltd.*+ ............................. 17,392 648,026 Tidewater, Inc. ...................................... 22,865 647,080 Varco International, Inc.* ........................... 28,684 485,046 FMC Technologies, Inc.* .............................. 20,470 438,467 Helmerich & Payne, Inc. .............................. 15,203 397,406 Rowan Cos., Inc.*+ ................................... 15,933 391,633 Maverick Tube Corp.* ................................. 21,699 336,768 Pride International, Inc.*+ .......................... 19,493 330,406 Unit Corp.* .......................................... 16,713 314,873 SEACOR SMIT, Inc.* ................................... 8,493 307,192 Hanover Compressor Co.* .............................. 30,958 306,484 Cal Dive International, Inc.*+ ....................... 15,211 295,702 CARBO Ceramics, Inc. ................................. 7,380 266,861 Grant Prideco, Inc.* ................................. 25,961 264,543 Oceaneering International, Inc.* ..................... 11,215 263,777 Tetra Technologies, Inc.* ............................ 12,200 251,564 W-H Energy Services, Inc.* ........................... 13,639 242,774 Offshore Logistics, Inc.* ............................ 11,802 239,581 National-Oilwell, Inc.* .............................. 12,637 229,235 GlobalSantaFe Corp.+ ................................. 7,820 187,289 Precision Drilling Corp.* ............................ 4,800 180,768 Key Energy Services, Inc.*+ .......................... 18,599 179,480 Atwood Oceanics, Inc.* ............................... 6,900 165,531 Input/Output, Inc.* .................................. 35,824 140,072 Hydril* .............................................. 2,422 49,070 Lone Star Technologies, Inc.*+ ....................... 1,937 26,130 Dril-Quip, Inc.* ..................................... 1,200 20,280 ----------- TOTAL COMMON STOCKS (Cost $15,059,128) ................................. 18,323,239 ----------- TOTAL INVESTMENTS 100% (Cost $15,059,128) ................................. $18,323,239 ----------- ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. 16 FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 98.7% Citigroup, Inc. ...... 24,903 $ 1,133,336 Wells Fargo & Co.+ ... 16,827 866,590 Bank of America Corp. 10,726 837,057 Wachovia Corp. ....... 17,310 712,999 Bank One Corp. ....... 18,161 701,923 American International Group, Inc.+ ....... 10,136 584,847 FleetBoston Financial Corp. .............. 19,030 573,754 MBNA Corp. ........... 24,881 567,287 Prudential Financial, Inc.+ .............. 14,810 553,302 Allstate Corp. ....... 15,119 552,297 SLM Corp.+ ........... 14,140 550,894 American Express Co. . 12,024 541,801 John Hancock Financial Services, Inc. ..... 15,940 538,772 M&T Bank Corp. ....... 5,700 497,610 Washington Mutual, Inc.+ .............. 12,610 496,456 XL Capital Ltd. ...... 6,400 495,616 J.P. Morgan Chase & Co. 14,376 493,528 ACE Ltd. ............. 14,800 489,584 National City Corp. .. 16,120 474,895 Charter One Financial, Inc. ............... 15,100 462,060 Regions Financial Corp. 12,720 435,660 Union Planters Corp. . 13,379 423,312 Radian Group, Inc.+ .. 9,500 421,800 Investors Financial Services Corp.+ .... 13,170 413,538 Merrill Lynch & Co., Inc.+ .............. 7,558 404,580 AmerUs Group Co.+ .... 11,760 399,840 MetLife, Inc. ........ 14,200 398,310 Morgan Stanley ....... 7,664 386,725 W.R. Berkley Corp. ... 11,130 381,314 U.S. Bancorp+ ........ 15,741 377,627 MGIC Investment Corp.+ 7,080 368,656 American Financial Group, Inc./OH ............ 16,930 368,227 MAF Bancorp, Inc. .... 9,473 361,869 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Staten Island Bancorp, Inc. ............... 18,120 $ 352,434 Seacoast Financial Services Corp. .............. 16,922 350,455 Riggs National Corp. . 22,114 348,295 Hilb, Rogal & Hamilton Co. ................ 10,860 337,094 Equity Residential ... 11,120 325,594 Downey Financial Corp. 6,960 325,241 Eaton Vance Corp.+ ... 9,590 321,073 KeyCorp .............. 12,000 306,840 LaBranche & Co., Inc. 20,840 304,264 Colonial BancGroup, Inc.+ .............. 21,070 304,251 Silicon Valley Bancshares* ........ 10,920 301,720 Principal Financial Group, Inc. ............... 9,720 301,223 Golden West Financial Corp. .............. 3,360 300,754 Lincoln National Corp. 8,460 299,315 Equity Office Properties Trust ............. 10,220 281,357 Simon Property Group, Inc. ............... 6,310 274,990 Huntington Bancshares, Inc. ............... 13,700 271,123 Bank of New York Co., Inc. ............... 9,250 269,267 LandAmerica Financial Group, Inc. ........ 5,660 259,454 SEI Investments Co. .. 7,950 258,375 PNC Financial Services Group, Inc. ........ 5,400 256,932 Capital One Financial Corp. .............. 4,450 253,828 PMI Group, Inc. ...... 7,140 240,975 First Tennessee National Corp.+ ............. 4,900 208,054 Independence Community Bank Corp. ......... 5,900 206,087 Irwin Financial Corp. 8,300 201,690 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Plum Creek Timber (REIT) Co., Inc.+ ......... 7,820 $ 198,941 Webster Financial Corp. 4,940 197,007 UICI* ................ 15,676 196,577 Everest Re Group Ltd.+ 2,500 187,900 Federated Investors, Inc.-- Class B ............ 6,720 186,144 Charles Schwab Corp.+ 15,620 186,034 Fannie Mae ........... 2,524 177,185 Boston Private Financial Holdings, Inc. ..... 7,500 176,700 Hartford Financial Services Group, Inc.+ ....... 3,280 172,626 Moody's Corp. ........ 3,100 170,407 Legg Mason, Inc.+ .... 2,320 167,504 Stewart Information Services Corp.* .... 5,700 160,968 Leucadia National Corp.+ 4,219 159,689 Commerce Bancorp, Inc./NJ+ ........... 3,280 157,145 Lehman Brothers Holdings, Inc.+ .............. 2,120 146,450 E*TRADE Group, Inc.*+ 15,230 141,030 MONY Group, Inc. ..... 4,230 137,687 Protective Life Corp. 4,400 131,340 Cash America International, Inc. ............... 7,800 127,920 Flagstar Bancorp, Inc. 5,520 126,684 United Dominion Realty Trust, Inc. ........ 6,410 117,367 Waddell & Reed Financial, Inc.--Class A ...... 4,910 115,729 GBC Bancorp/CA ....... 3,000 115,050 Liberty Property Trust 3,080 113,898 Aon Corp.+ ........... 5,380 112,173 New Plan Excel Realty Trust .............. 4,740 110,442 UnumProvident Corp. .. 7,400 109,298 United Bankshares, Inc. 3,591 107,550 First American Corp. . 4,300 107,070 State Street Corp.+ .. 2,320 104,400 Northern Trust Corp. . 2,430 103,129 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Goldman Sachs Group, Inc. ............... 1,170 $ 98,163 Chubb Corp. .......... 1,480 96,022 New Century Financial Corp. .............. 3,330 94,306 Apartment Investment & Management Co.-- Class A+ ........... 2,390 94,070 Essex Property Trust, Inc. ............... 1,500 94,065 Providian Financial Corp.* ............. 7,760 91,490 Dime Community Bancshares ......... 3,900 89,700 Fidelity National Financial, Inc. ............... 2,916 87,655 Janus Capital Group, Inc. ............... 5,650 78,931 SAFECO Corp.+ ........ 2,070 72,988 Freddie Mac .......... 1,360 71,196 RLI Corp. ............ 2,120 69,790 Fremont General Corp. 5,482 69,676 Mack-Cali Realty Corp. 1,700 66,640 AFLAC, Inc. .......... 2,020 65,246 Shurgard Storage Centers, Inc.--Class A ...... 1,820 64,246 Hibernia Corp.--Class A 2,880 58,349 Ambac Financial Group, Inc. ............... 900 57,600 Loews Corp. .......... 1,360 54,903 AmeriCredit Corp.*+ .. 5,290 54,487 Fifth Third Bancorp .. 920 51,032 SunTrust Banks, Inc. . 820 49,503 Capital Automotive REIT+ .............. 1,500 45,765 Investment Technology Group, Inc.* ....... 2,070 39,703 Greater Bay Bancorp+ . 1,800 37,440 Comerica, Inc. ....... 800 37,280 T. Rowe Price Group, Inc. ............... 902 37,217 ----------- TOTAL COMMON STOCKS (Cost $26,508,061) . 31,076,258 ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. REIT--REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. 18 FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 1.3% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $ 93,430 $ 93,430 0.94% due 10/01/03 ................................. 6,651 6,651 0.93% due 10/01/03 ................................. 93,430 93,430 0.91% due 10/01/03 ................................. 93,430 93,430 0.90% due 10/01/03 ................................. 131,899 131,899 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $418,840) .................................... 418,840 ----------- TOTAL INVESTMENTS 100% (Cost $26,926,901) ................................. $31,495,098 ----------- ----------- See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 HEALTH CARE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 98.9% Pfizer, Inc. ......... 53,513 $ 1,625,725 Johnson & Johnson, Inc. 27,705 1,371,952 Bristol-Myers Squibb Co. ................ 35,798 918,577 Medtronic, Inc. ...... 19,064 894,483 Wyeth ................ 18,977 874,840 Amgen, Inc.*+ ........ 10,977 708,785 UnitedHealth Group, Inc. ............... 12,414 624,672 Merck & Co., Inc. .... 11,798 597,215 McKesson Corp.+ ...... 17,023 566,696 Gilead Sciences, Inc.*+ 9,849 550,855 Boston Scientific Corp.* 8,450 539,110 Becton Dickinson & Co. 14,500 523,740 Schering-Plough Corp. 32,294 492,161 King Pharmaceuticals, Inc.* .............. 32,300 489,345 Applera Corp.--Applied Biosystems Group ... 21,900 488,589 DENTSPLY International, Inc. ............... 10,600 475,304 Cephalon, Inc.*+ ..... 9,900 454,608 Biogen, Inc.* ........ 11,400 435,822 Universal Health Services, Inc.--Class B* ..... 8,800 435,160 Eli Lilly & Co. ...... 7,323 434,986 Beckman Coulter, Inc. 9,415 428,759 Abbott Laboratories .. 10,028 426,691 WellPoint Health Networks, Inc.* .... 5,522 425,636 Apria Healthcare Group, Inc.*+ ............. 15,400 421,652 IDEXX Laboratories, Inc.*+ ............. 9,600 407,904 Sybron Dental Specialties, Inc.* .............. 15,769 395,329 Advanced Medical Optics, Inc.* .............. 21,200 380,752 Genzyme Corp.* ....... 8,100 374,625 NDCHealth Corp. ...... 17,700 370,815 Cerner Corp.*+ ....... 11,850 365,809 Vertex Pharmaceuticals, Inc.*+ ............. 29,590 363,957 Invacare Corp. ....... 9,394 353,027 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Bausch & Lomb, Inc. .. 7,900 $ 348,785 Applera Corp.--Celera Genomics Group* .... 28,426 332,300 Lincare Holdings, Inc.*+ 8,920 326,918 Respironics, Inc.* ... 7,450 311,261 Aventis SA--SP ADR ... 5,900 308,570 Novartis AG--SP ADR .. 7,850 304,894 Analogic Corp. ....... 6,300 302,400 Alkermes, Inc.* ...... 21,400 293,608 Sepracor, Inc.* ...... 10,650 293,301 Bio-Rad Laboratories, Inc.--Class A* ..... 5,700 290,700 SurModics, Inc.*+ .... 10,800 289,872 Anthem, Inc.* ........ 4,008 285,891 Millennium Pharmaceuticals, Inc.*+ ............. 18,195 280,021 Viasys Healthcare, Inc.* .............. 13,600 274,720 AstraZeneca PLC-- SP ADR+ ............ 6,170 267,778 Neurocrine Biosciences, Inc.* .............. 5,400 267,408 Affymetrix, Inc.* .... 11,800 247,682 Baxter International, Inc. ............... 8,506 247,184 Patterson Dental Co.*+ 4,000 230,320 First Health Group Corp.* ............. 8,439 220,680 Humana, Inc.* ........ 12,150 219,307 Omnicare, Inc. ....... 5,951 214,593 Connetics Corp.* ..... 11,750 212,205 Coventry Health Care, Inc.*+ ............. 3,700 195,138 Savient Pharmaceuticals, Inc.* .............. 38,329 193,561 Tenet Healthcare Corp.*+ ............ 13,051 188,978 Aetna, Inc. .......... 3,060 186,752 AdvancePCS* .......... 3,550 161,773 PacifiCare Health Systems, Inc.* .............. 3,300 161,040 CIGNA Corp.+ ......... 3,435 153,373 Diagnostic Products Corp. .............. 4,200 152,586 Cardinal Health, Inc. 2,554 149,128 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 20 HEALTH CARE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- HCA, Inc. ............ 3,993 $ 147,182 GlaxoSmithKline PLC--SP ADR+ ....... 3,300 139,920 Forest Laboratories, Inc.*+ ............. 2,566 132,021 Health Net, Inc.*+ ... 4,150 131,430 Datascope Corp. ...... 4,050 124,497 Human Genome Sciences, Inc.* .............. 8,300 113,378 Shire Pharmaceuticals PLC--SP ADR*+ ...... 4,900 108,339 Abgenix, Inc.*+ ...... 7,450 107,950 Oxford Health Plans, Inc.* .............. 2,550 105,340 Varian Medical Systems, Inc.* .............. 1,600 91,968 Osteotech, Inc.* ..... 10,800 88,452 Stryker Corp. ........ 1,123 84,573 Accredo Health, Inc.* 3,000 83,970 Guidant Corp. ........ 1,783 83,534 Express Scripts, Inc.*+ 1,350 82,552 ArQule, Inc.* ........ 17,680 81,328 OSI Pharmaceuticals, Inc.*+ ............. 2,400 77,928 CONMED Corp.* ........ 3,700 76,368 Orthodontic Centers Of America, Inc.*+ .... 8,650 68,162 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- ResMed, Inc.* ........ 1,500 $ 65,970 Dade Behring Holdings, Inc.* .............. 2,300 64,975 Apogent Technologies, Inc.* .............. 3,100 64,666 Quest Diagnostics, Inc.*+ ............. 1,000 60,640 Medicines Co.* ....... 1,900 49,400 Pharmaceutical Resources, Inc.* .............. 600 40,932 Allergan, Inc.+ ...... 500 39,365 Andrx Corp.* ......... 2,000 37,020 Alpharma, Inc.--Class A 1,800 33,480 MGI Pharma, Inc.* .... 800 31,408 Mid Atlantic Medical Services, Inc.* .... 600 30,858 Sierra Health Services, Inc.* .............. 1,450 29,798 Zimmer Holdings, Inc.*+ 500 27,550 St. Jude Medical, Inc.* 500 26,885 Chiron Corp.*+ ....... 501 25,897 ----------- TOTAL COMMON STOCKS (Cost $23,368,877) . 28,688,044 ----------- FACE AMOUNT -------- REPURCHASE AGREEMENTS 1.1% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $ 73,038 73,038 0.94% due 10/01/03 ................................. 5,199 5,199 0.93% due 10/01/03 ................................. 73,038 73,038 0.91% due 10/01/03 ................................. 73,038 73,038 0.90% due 10/01/03 ................................. 103,113 103,113 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $327,426) .................................... 327,426 ----------- TOTAL INVESTMENTS 100% (Cost $23,696,303) ................................. $29,015,470 ----------- ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 INTERNET FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 98.7% Cisco Systems, Inc.*+ 88,095 $ 1,721,376 AOL Time Warner, Inc.*+ 75,634 1,142,830 QUALCOMM, Inc+. ...... 23,720 987,701 eBay, Inc.*+ ......... 15,558 832,508 Amazon.com, Inc.*+ ... 14,660 708,958 Yahoo!, Inc.*+ ....... 18,060 638,963 Intuit, Inc.*+ ....... 12,420 599,141 Symantec Corp.*+ ..... 6,500 409,630 Foundry Networks, Inc.*+ ............. 18,990 408,475 Check Point Software Technologies Ltd.* . 23,578 396,110 Broadcom Corp.-- Class A* ........... 14,717 391,766 Juniper Networks, Inc.*+ ............. 25,550 381,206 InterActiveCorp*+ .... 11,300 373,465 Sun Microsystems, Inc.* 98,612 326,406 BEA Systems, Inc.*+ .. 26,625 320,831 Earthlink, Inc.* ..... 38,190 314,304 Qwest Communications International, Inc.* 81,276 276,338 E*TRADE Group, Inc.*+ 28,860 267,244 Overture Services, Inc.* .............. 10,000 264,900 Siebel Systems, Inc.* 27,180 264,190 VeriSign, Inc.* ...... 18,944 255,176 S1 Corp.* ............ 46,930 236,996 Network Associates, Inc.* .............. 15,039 206,937 WebMD Corp.*+ ........ 23,180 206,766 Research In Motion Ltd.*+ ............. 5,400 206,280 United Online, Inc.* . 5,900 204,848 Macromedia, Inc.* .... 7,078 175,110 DoubleClick, Inc.*+ .. 15,090 162,519 CNET Networks, Inc.* . 20,430 144,644 Websense, Inc.* ...... 6,510 138,468 WebEx Communications, Inc.*+ ............. 7,100 134,829 CIENA Corp.*+ ........ 21,830 129,015 CheckFree Corp.* ..... 5,418 108,360 Internet Security Systems, Inc.* .............. 8,500 106,250 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Digital Insight Corp.* 4,867 $ 96,853 RealNetworks, Inc.*+ . 14,506 95,014 Netease.com, Inc.--SP ADR*+ .............. 1,700 94,894 Netflix, Inc.*+ ...... 2,800 94,108 TIBCO Software, Inc.* 17,543 93,855 F5 Networks, Inc.* ... 4,853 93,372 j2 Global Communications, Inc.* ............. 1,900 71,877 Ariba, Inc.* ......... 22,600 68,704 webMethods, Inc.* .... 7,700 61,446 Infospace, Inc.* ..... 2,500 51,025 Red Hat, Inc.* ....... 4,778 48,258 CMGI, Inc.* .......... 24,700 38,285 AsiaInfo Holdings, Inc.* 5,600 37,744 Akamai Technologies, Inc.* .............. 7,100 30,459 Ask Jeeves, Inc.* .... 1,500 26,100 FindWhat.com* ........ 1,400 24,192 Register.com, Inc.* .. 4,900 22,099 ------------ TOTAL COMMON STOCKS (Cost $12,233,143) . 14,490,825 ------------ FACE AMOUNT ------ REPURCHASE AGREEMENTS 1.3% Repurchase Agreement (Note 4) 0.96% due 10/01/03 . $43,717 43,717 0.94% due 10/01/03 . 3,112 3,112 0.93% due 10/01/03 . 43,717 43,717 0.91% due 10/01/03 . 43,717 43,717 0.90% due 10/01/03 . 61,720 61,720 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $195,983) 195,983 ------------ TOTAL INVESTMENTS 100% (Cost $12,429,126) $ 14,686,808 ------------ ------------ * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 22 LEISURE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 99.6% McDonald's Corp. ..... 11,490 $ 270,475 Carnival Corp. ....... 5,969 196,320 Starbucks Corp.*+ .... 6,540 188,352 Electronic Arts, Inc.*+ 1,982 182,800 International Game Technology, Inc.+ .. 6,228 175,318 Harley-Davidson, Inc. 3,568 171,978 Marriott International, Inc.--Class A ...... 3,866 166,354 Mattel, Inc. ......... 8,624 163,511 Yum! Brands, Inc.* ... 4,530 134,179 Hilton Hotels Corp.+ . 8,180 132,680 Brinker International, Inc.*+ ............. 3,850 128,436 Hasbro, Inc. ......... 6,760 126,277 Royal Caribbean Cruises Ltd.+ .............. 4,118 115,757 Harrah's Entertainment, Inc. ............... 2,710 114,118 Starwood Hotels & Resorts Worldwide, Inc. .... 3,166 110,177 Applebee's International, Inc. ............... 3,270 102,940 MGM Mirage, Inc.* .... 2,608 95,322 Eastman Kodak Co. .... 4,500 94,230 P.F. Chang's China Bistro, Inc.* .............. 1,900 86,165 Outback Steakhouse, Inc. 2,200 83,314 Park Place Entertainment Corp.* ............. 9,150 82,441 CBRL Group, Inc.+ .... 2,290 81,249 Polaris Industries, Inc. 1,086 80,527 Aztar Corp.* ......... 4,520 80,049 Papa John's International, Inc.*+ ............. 3,080 76,415 Lone Star Steakhouse & Saloon, Inc. ....... 3,650 76,285 Callaway Golf Co. .... 4,980 71,065 Harman International Industries, Inc. ... 695 68,353 Bob Evans Farms, Inc. 2,510 67,042 GTECH Holdings Corp. . 1,560 66,846 Station Casinos, Inc. 2,020 61,812 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- ARAMARK Corp.-- Class B* ........... 2,440 $ 61,073 Darden Restaurants, Inc. 3,190 60,610 NVR, Inc.* ........... 100 46,650 Wendy's International, Inc.+ .............. 1,440 46,512 Brunswick Corp. ...... 1,780 45,710 Activision, Inc.* .... 3,601 43,032 Shuffle Master, Inc.* 1,560 42,401 O'Charleys, Inc.* .... 2,780 41,227 Russell Corp. ........ 2,460 40,098 Ford Motor Co. ....... 3,700 39,849 Take-Two Interactive Software, Inc.* .... 920 31,436 Mandalay Resort Group 770 30,500 THQ, Inc.* ........... 1,793 29,441 Ryan's Family Steak Houses, Inc.* .............. 2,140 27,371 Ruby Tuesday, Inc. ... 1,130 27,244 Winnebago Industries, Inc. ............... 590 26,302 Nautilus Group, Inc. . 1,974 24,912 Six Flags, Inc.* ..... 4,720 24,827 Pinnacle Entertainment, Inc.* .............. 3,450 24,150 International Speedway Corp.--Class A ..... 520 22,823 Department 56, Inc.* . 1,730 21,971 JAKKS Pacific, Inc.* . 1,680 20,479 Applica, Inc. ........ 3,330 20,146 Extended Stay America, Inc.* .............. 1,250 18,662 Coach, Inc.* ......... 330 18,018 K-Swiss, Inc.--Class A 490 17,635 K2, Inc.* ............ 1,150 17,077 Fleetwood Enterprises, Inc.* .............. 1,770 16,408 Bally Total Fitness Holding Corp.* ............. 1,868 16,158 Cheesecake Factory, Inc.*+ ............. 440 15,915 Haggar Corp. ......... 990 15,296 Arctic Cat, Inc. ..... 700 13,531 Ryland Group, Inc. ... 160 11,698 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 LEISURE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------------------------- Jack in the Box, Inc.* ............................... 520 $ 9,256 Liz Claiborne, Inc. .................................. 250 8,513 Timberland Co.--Class A* ............................. 160 6,826 Brown Shoe Co., Inc. ................................. 160 5,072 Steak n Shake Co.* ................................... 330 4,917 WMS Industries, Inc.* ................................ 200 4,532 CEC Entertainment, Inc.* ............................. 110 4,312 Champion Enterprises, Inc.* .......................... 660 4,191 Unifi, Inc.* ......................................... 740 3,552 ---------- TOTAL COMMON STOCKS (Cost $3,669,799) .................................. 4,661,120 ---------- FACE AMOUNT ------ REPURCHASE AGREEMENTS 0.4% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $3,786 3,786 0.94% due 10/01/03 ................................. 269 269 0.93% due 10/01/03 ................................. 3,786 3,786 0.91% due 10/01/03 ................................. 3,786 3,786 0.90% due 10/01/03 ................................. 5,344 5,344 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $16,971) ..................................... 16,971 ---------- TOTAL INVESTMENTS 100% (Cost $3,686,770) .................................. $4,678,091 ---------- ---------- * NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 24 PRECIOUS METALS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 100.0% AngloGold Ltd.-- SP ADR+ ............ 575,487 $ 21,695,860 Newmont Mining Corp.+ ............. 520,118 20,331,413 Barrick Gold Corp.+ ............1,065,362 20,060,766 Gold Fields Ltd.-- SP ADR+ ...........1,009,351 14,302,504 Freeport-McMoRan Copper & Gold, Inc.--Class B+ ..... 404,619 13,392,889 Placer Dome, Inc. .... 683,222 9,394,302 Harmony Gold Mining Co. Ltd.-- SP ADR+ ............ 601,223 8,711,721 Goldcorp, Inc.+ ...... 619,861 8,653,260 Agnico-Eagle Mines Ltd.+ .............. 616,750 7,623,030 Apex Silver Mines Ltd.* .............. 559,480 7,497,032 Meridian Gold, Inc.* .............. 582,728 6,835,399 Royal Gold, Inc.+ .... 249,407 4,564,148 Glamis Gold Ltd.* .... 324,255 4,280,166 Kinross Gold Corp.*+ ............ 571,723 4,265,054 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Durban Roodepoort Deep Ltd.-- SP ADR*+ ..........1,077,584 $ 3,038,787 Ashanti Goldfields Co. Ltd.* .......... 286,076 2,989,494 Coeur D'alene Mines Corp.* ............. 918,464 2,856,423 Cia de Minas Buenaventura SA-- SP ADR ............. 68,436 2,708,697 Hecla Mining Co.* .... 406,773 2,131,491 Pan American Silver Corp.*+ ............ 213,316 2,054,233 Bema Gold Corp.*+ ............ 775,242 1,976,867 Golden Star Resources Ltd.*+ ............. 437,650 1,825,000 BHP Billiton Ltd.-- SP ADR ............. 86,950 1,232,951 Anglo American PLC--ADR ........... 51,248 930,151 ------------ TOTAL COMMON STOCKS (Cost $126,872,715) 173,351,638 ------------ TOTAL INVESTMENTS 100% (Cost $126,872,715) $173,351,638 ------------ ------------ * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RETAILING FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 97.8% Wal-Mart Stores, Inc.+ 23,488 $ 1,311,805 Home Depot, Inc. ..... 26,338 838,865 Lowe's Cos., Inc.+ ... 15,794 819,709 Target Corp. ......... 15,353 577,733 Gap, Inc.+ ........... 28,370 485,694 Sears Roebuck and Co.+ 10,257 448,539 Amazon.com, Inc.*+ ... 9,170 443,461 Cardinal Health, Inc. 7,580 442,596 CVS Corp.+ ........... 12,535 389,337 Best Buy Co., Inc.* .. 7,799 370,608 Costco Wholesale Corp.* 11,575 359,751 Chico's FAS, Inc.*+ .. 11,560 354,198 Walgreen Co. ......... 11,251 344,731 Neiman-Marcus Group, Inc.--Class A* ..... 7,650 319,005 Tiffany & Co.+ ....... 8,340 311,332 Limited Brands, Inc. . 18,970 286,068 Ross Stores, Inc. .... 6,123 283,862 McKesson Corp.+ ...... 8,260 274,975 Bed Bath & Beyond, Inc.*+ ............. 6,840 261,151 Dollar General Corp. . 13,010 260,200 AutoNation, Inc.*+ ... 14,360 251,874 RadioShack Corp. ..... 8,716 247,622 JC Penney Holding Co., Inc.+ .............. 11,580 247,465 Staples, Inc.*+ ...... 10,310 244,862 Kohl's Corp.*+ ....... 4,529 242,301 AutoZone, Inc.*+ ..... 2,650 237,255 Cato Corp.--Class A .. 11,000 221,870 Dollar Tree Stores, Inc.* .............. 6,521 218,454 O'Reilly Automotive, Inc.*+ ............. 5,900 216,943 Claire's Stores, Inc. 6,260 209,460 Petsmart, Inc.* ...... 9,187 208,545 99 Cents Only Stores* 6,400 206,976 Building Material Holding Corp. .............. 15,492 202,945 Abercrombie & Fitch Co.--Class A* ...... 7,200 199,512 AmerisourceBergen Corp. 3,680 198,904 Federated Department . Stores, Inc. ....... 4,680 196,092 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Family Dollar Stores, Inc. ............... 4,795 $ 191,273 Sysco Corp.+ ......... 5,800 189,718 Office Depot, Inc.* .. 13,395 188,200 Sherwin-Williams Co. . 6,200 182,342 Tractor Supply Co.* .. 5,400 177,174 Casey's General Stores, Inc. ............... 12,086 169,567 Coach, Inc.* ......... 3,010 164,346 CarMax, Inc.* ........ 4,900 160,034 Circuit City Stores, Inc. ............... 16,500 157,245 Insight Enterprises, Inc.* .............. 9,900 150,678 Foot Locker, Inc. .... 9,120 147,744 Movie Gallery, Inc.* . 7,300 143,445 Advance Auto Parts, Inc.* .............. 1,871 132,654 Pacific Sunwear of California, Inc.* .. 6,418 132,596 May Department Stores Co. ................ 5,335 131,401 TJX Cos., Inc. ....... 6,594 128,055 AnnTaylor Stores Corp.*+ 3,901 125,378 Men's Wearhouse, Inc.* 4,700 120,555 Rite Aid Corp.*+ ..... 22,910 118,216 eBay, Inc.* .......... 2,100 112,371 OfficeMax, Inc.* ..... 11,840 110,941 BJ's Wholesale Club, Inc.* .............. 5,109 98,961 Charming Shoppes, Inc.* 16,775 95,785 Priority Healthcare Corp.--Class B* .... 4,450 91,403 Michaels Stores, Inc. 2,230 90,895 CDW Corp.+ ........... 1,510 87,187 Talbots, Inc. ........ 2,480 86,428 Saks, Inc.* .......... 7,100 81,863 Regis Corp. .......... 2,500 80,250 Performance Food Group Co.*+ .............. 1,900 77,349 Nordstrom, Inc. ...... 2,920 72,445 Whole Foods Market, Inc.* .............. 1,300 71,734 American Eagle Outfitters, Inc.*+ ............. 4,110 61,075 Trans World Entertainment Corp.* ............. 10,221 57,749 Childrens Place Retail Stores, Inc.* ...... 3,200 54,880 Guitar Center, Inc.* . 1,700 54,672 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. 26 RETAILING FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) --------------------------------------------------------------------------- Zale Corp.* .......................................... 1,100 $ 48,851 Burlington Coat Factory Warehouse Corp. .............. 2,542 47,535 Pier 1 Imports, Inc. ................................. 2,400 46,176 Hollywood Entertainment Corp.* ....................... 2,666 45,322 Urban Outfitters, Inc.* .............................. 1,500 39,090 Group 1 Automotive, Inc.* ............................ 1,000 34,540 Kroger Co.* .......................................... 1,900 33,953 Dillard's/AR, Inc.--Class A .......................... 2,400 33,552 Nash Finch Co. ....................................... 2,100 32,550 Toys "R" Us, Inc.* .................................. 2,325 27,970 Aaron Rents, Inc. .................................... 1,100 23,045 J. Jill Group, Inc.* ................................. 1,450 16,675 Footstar, Inc.* ...................................... 1,700 11,492 ----------- TOTAL COMMON STOCKS (Cost $12,318,496) ................................. 17,472,060 ----------- FACE AMOUNT ------ REPURCHASE AGREEMENTS 2.2% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $ 86,431 86,431 0.94% due 10/01/03 ................................. 6,153 6,153 0.93% due 10/01/03 ................................. 86,431 86,431 0.91% due 10/01/03 ................................. 86,431 86,431 0.90% due 10/01/03 ................................. 122,020 122,020 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $387,466) .................................... 387,466 ----------- TOTAL INVESTMENTS 100% (Cost $12,705,962) ................................. $17,859,526 ----------- ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 TECHNOLOGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 98.3% Intel Corp. .......... 53,197 $ 1,463,449 Microsoft Corp. ...... 40,318 1,120,437 Cisco Systems, Inc.*+ 54,974 1,074,192 Texas Instruments, Inc. 45,227 1,031,176 International Business Machines Corp. ..... 10,615 937,623 Hewlett-Packard Co. .. 46,656 903,260 QUALCOMM, Inc.+. ..... 18,935 788,453 Intuit, Inc.*+ ....... 15,800 762,192 Maxim Integrated Products, Inc.+ .... 17,351 685,364 Analog Devices, Inc.*+ 17,784 676,148 Xilinx, Inc.*+ ....... 22,890 652,594 Tellabs, Inc.* ....... 88,400 600,236 Linear Technology Corp. 16,196 579,979 Diebold, Inc. ........ 10,976 555,934 Microchip Technology, Inc.+ .............. 23,108 553,206 Convergys Corp.* ..... 30,000 550,200 Dell, Inc.* .......... 16,021 534,941 Advanced Fibre Communications, Inc.* .............. 25,500 534,735 Symantec Corp.*+ ..... 8,400 529,368 Electronic Arts, Inc.*+ 5,736 529,031 Sybase, Inc.* ........ 30,200 513,702 EMC Corp./MA*+ ....... 39,316 496,561 Oracle Corp.* ........ 43,877 492,300 Altera Corp.* ........ 25,636 484,520 Acxiom Corp.* ........ 29,600 466,496 Applied Materials, Inc.*+ ............. 25,305 459,033 Automatic Data Processing, Inc. ... 12,400 444,540 Xerox Corp.*+ ........ 43,248 443,724 Check Point Software Technologies Ltd.* . 25,400 426,720 PC-Tel, Inc.* ........ 38,125 406,794 National Semiconductor Corp.*+ ............ 12,528 404,529 United Microelectronics Corp.--SP ADR*+ .... 89,278 402,644 Concord EFS, Inc.* ... 29,400 401,898 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Netease.com, Inc.-- SP ADR*+ ........... 7,100 $ 396,322 Infineon Technologies AG--SP ADR* ........ 30,200 389,278 KLA-Tencor Corp.* .... 7,544 387,762 BMC Software, Inc.* .. 26,800 373,324 Yahoo!, Inc.*+ ....... 10,394 367,740 Corning, Inc.*+ ...... 37,641 354,578 NCR Corp.*+ .......... 10,926 346,245 Sun Microsystems, Inc.* .............. 104,500 345,895 Intermagnetics General Corp.* ............. 14,125 315,835 Overture Services, Inc.* .............. 11,700 309,933 Compuware Corp.* ..... 57,342 307,353 BearingPoint, Inc.* .. 38,100 304,038 SanDisk Corp.*+ ...... 4,723 301,044 Sanmina-SCI Corp.* ... 30,945 300,166 Electronic Data Systems Corp.+ ............. 14,857 300,111 STMicroelectronics NV 12,400 298,220 Computer Associates International, Inc.+ 10,944 285,748 QLogic Corp.*+ ....... 5,998 281,966 Lexmark International, Inc.* .............. 4,463 281,214 Hitachi Ltd.--SP AD .. 5,064 277,963 Veritas Software Corp.*+ 8,708 273,431 MAXIMUS, Inc.* ....... 7,900 272,155 Lucent Technologies, Inc.*+ ............. 125,437 270,944 Scientific-Atlanta, Inc. 8,612 268,264 Cabot Microelectronics Corp.*+ ............ 4,800 267,552 Black Box Corp.+ ..... 6,700 266,727 MPS Group, Inc.* ..... 29,600 266,400 Ingram Micro, Inc.-- Class A* ........... 19,900 259,695 Lam Research Corp.*+ . 11,541 255,633 Cognex Corp. ......... 9,651 253,725 Molex, Inc. .......... 8,807 251,792 PerkinElmer, Inc. .... 16,160 247,410 Photronics, Inc.*+ ... 11,574 246,063 Rudolph Technologies, Inc.* .............. 12,524 241,838 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 28 TECHNOLOGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- eFunds Corp.* ........ 19,221 $ 237,379 Canon, Inc.--SP ADR+ . 4,800 233,856 SunGard Data Systems, Inc.* .............. 8,757 230,397 Avaya, Inc.* ......... 20,802 226,742 Atmel Corp.* ......... 56,227 225,470 Teradyne, Inc.*+ ..... 11,999 223,181 Harris Corp. ......... 6,217 222,506 Storage Technology Corp.*+ ............ 9,200 222,088 Western Digital Corp.* ............. 16,200 208,818 Taiwan Semiconductor Manufacturing Co. Ltd.--SP ADR*+ ..... 18,536 200,745 Analogic Corp. ....... 4,160 199,680 Midway Games, Inc.*+ . 66,965 198,216 CSG Systems International, Inc.* 13,300 196,441 Lattice Semiconductor Corp.* ............. 27,602 196,250 Power Integrations, Inc.* .............. 5,900 196,116 Network Appliance, Inc.* 9,534 195,733 Varian, Inc.* ........ 6,248 195,687 Avnet, Inc.*+ ........ 11,500 189,980 Computer Sciences Corp.*+ ............ 5,056 189,954 CommScope, Inc.* ..... 15,727 189,668 Cypress Semiconductor Corp.*+ ............ 10,487 185,410 Adobe Systems, Inc. .. 4,712 184,993 Satyam Computer Services Ltd.-- SP ADR+ ............ 13,900 179,310 Integrated Device Technology, Inc.* .. 14,383 178,637 ATMI, Inc.* .......... 7,011 177,168 Take-Two Interactive Software, Inc.*+ ... 5,115 174,780 Avid Technology, Inc.*+ 3,300 174,372 Microsemi Corp.* ..... 11,416 173,980 ANSYS, Inc.* ......... 4,894 173,933 Anixter International, Inc.* .............. 7,600 173,052 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Network Equipment Technologies, Inc.* 18,646 $ 170,611 International Rectifier Corp.*+ ............ 4,500 168,480 Methode Electronics, Inc.--Class A ...... 14,200 167,702 Websense, Inc.* ...... 7,699 163,758 Waters Corp.* ........ 5,962 163,538 Planar Systems, Inc.* 7,500 160,875 Polycom, Inc.*+ ...... 9,572 158,991 Exar Corp.* .......... 11,037 155,953 Actel Corp.*+ ........ 6,500 155,805 Technitrol, Inc.* .... 8,297 152,748 Progress Software Corp.*+ ............ 7,100 152,650 Foundry Networks, Inc.*+ 7,021 151,022 Symbol Technologies, Inc. ............... 11,842 141,512 First Data Corp.+ .... 3,500 139,860 LSI Logic Corp.*+ .... 14,804 133,088 Andrew Corp.*+ ....... 10,800 132,732 Citrix Systems, Inc.* 5,940 131,155 Legato Systems, Inc.* 11,483 128,724 DSP Group, Inc.* ..... 5,000 124,550 Juniper Networks, Inc.*+ 8,202 122,374 Rambus, Inc.* ........ 7,200 120,816 Echelon Corp.*+ ...... 9,889 117,679 Siebel Systems, Inc.* 12,087 117,486 Skyworks Solutions, Inc.*+ ............. 12,848 116,917 Silicon Laboratories, Inc.* .............. 2,600 116,870 webMethods, Inc.* .... 14,537 116,005 NVIDIA Corp.*+ ....... 7,106 113,064 Reynolds & Reynolds Co.--Class A ....... 4,000 110,200 Cree, Inc.*+ ......... 5,911 109,472 Semtech Corp.*+ ...... 5,897 108,859 Synopsys, Inc.* ...... 3,500 107,695 Itron, Inc.* ......... 5,200 104,364 NetScreen Technologies, Inc.*+ ............. 4,514 100,346 Gartner, Inc.-- Class B* ........... 9,100 99,099 Applied Micro Circuits Corp.* ............. 20,133 98,048 * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 TECHNOLOGY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) --------------------------------------------------------------------------- Macromedia, Inc.* .................................... 3,850 $ 95,249 SPSS, Inc.* .......................................... 5,386 90,862 3Com Corp.* .......................................... 14,900 87,910 Jabil Circuit, Inc.* ................................. 3,130 81,536 Transaction Systems Architects, Inc.--Class A* ....... 4,900 81,389 JDA Software Group, Inc.* ............................ 5,239 77,904 Fidelity National Information Solutions, Inc.* ....... 3,100 77,035 Kronos, Inc./MA* ..................................... 1,392 73,651 Mercury Interactive Corp.*+ .......................... 1,621 73,610 Affiliated Computer Services, Inc.--Class A*+ ........ 1,460 71,087 Sohu.com, Inc.*+ ..................................... 2,200 68,420 Mentor Graphics Corp.*+ .............................. 3,400 59,602 Digi International, Inc.* ............................ 8,845 58,545 SAP AG--SP ADR+ ...................................... 1,900 57,779 Novellus Systems, Inc.* .............................. 1,711 57,746 Motorola, Inc. ....................................... 4,114 49,245 Informatica Corp.* ................................... 6,596 49,140 Intersil Corp.--Class A* ............................. 1,824 43,411 ----------- TOTAL COMMON STOCKS (Cost $35,342,856) ................................. 42,914,054 ----------- FACE AMOUNT ------ REPURCHASE AGREEMENTS 1.7% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $161,012 161,012 0.94% due 10/01/03 ................................. 11,462 11,462 0.93% due 10/01/03 ................................. 161,012 161,012 0.91% due 10/01/03 ................................. 161,012 161,012 0.90% due 10/01/03 ................................. 227,312 227,312 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $721,810) .................................... 721,810 ----------- TOTAL INVESTMENTS 100% (Cost $36,064,666) ................................. $43,635,864 ----------- ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 30 TELECOMMUNICATIONS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 98.8% Vodafone Group PLC-- SP ADR+ ............ 38,173 $ 773,003 Cisco Systems, Inc.* . 32,600 637,004 QUALCOMM, Inc.+ ...... 10,581 440,593 Verizon Communications, Inc. ............... 12,408 402,516 Nokia OYJ--SP ADR+ ... 25,064 390,998 SBC Communications, .. Inc. ............... 16,380 364,455 AT&T Wireless Services, Inc.*+ ............. 40,230 329,081 Sprint Corp.-FON Group+ ............. 20,394 307,949 Telefonaktiebolaget LM Ericsson-- SP ADR*+ ........... 19,711 289,358 ALLTEL Corp.+ ........ 5,912 273,962 AT&T Corp. ........... 12,566 270,797 BellSouth Corp.+ ..... 11,408 270,141 Motorola, Inc.+ ...... 21,409 256,266 Nextel Communications, Inc.--Class A*+ .... 12,141 239,056 Corning, Inc.*+ ...... 24,156 227,550 Alcatel SA--SP ADR* .. 16,535 195,609 Tellabs, Inc.* ....... 27,847 189,081 Telephone & Data Systems, Inc. ............... 3,000 169,620 Advanced Fibre Communications, Inc.* 7,900 165,663 McData Corp.--Class A* 13,700 163,989 CommScope, Inc.* ..... 13,085 157,805 3Com Corp.* .......... 24,300 143,370 Adaptec, Inc.* ....... 18,600 140,616 Comverse Technology, Inc.* .............. 8,600 128,656 CIENA Corp.*+ ........ 21,700 128,247 Citizens Communications Co.* ............... 11,200 125,552 Scientific-Atlanta, Inc. 3,902 121,547 Cable Design Technologies Corp.* ............. 14,900 119,200 PC-Tel, Inc.* ........ 10,719 114,372 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Sycamore Networks, Inc.* .............. 20,900 $ 102,410 Sprint Corp.--PCS Group*+ ............ 16,556 94,866 Deutsche Telekom AG-- SP ADR*+ ........... 6,200 89,528 Audiovox Corp.--Class A* 6,151 77,687 Avaya, Inc.* ......... 6,900 75,210 ViaSat, Inc.* ........ 4,200 74,802 ADTRAN, Inc.+ ........ 1,200 73,416 Lucent Technologies, Inc.*+ ............. 33,074 71,440 Andrew Corp.*+ ....... 5,809 71,393 Metro One Telecommunications, Inc.* .............. 19,627 68,302 CenturyTel, Inc.+ .... 1,910 64,730 Network Equipment Technologies, Inc.* 7,021 64,242 General Communication, Inc.--Class A* ..... 7,300 60,736 Qwest Communications International, Inc.* 15,550 52,870 Polycom, Inc.*+ ...... 2,293 38,087 JDS Uniphase Corp.* .. 10,518 37,865 Digi International, Inc.* .............. 5,523 36,557 KT Corp.--SP ADR ..... 1,600 31,888 Concerto Software, Inc.* 3,300 28,050 Black Box Corp. ...... 700 27,867 Crown Castle International Corp.* ............. 2,900 27,289 Bel Fuse, Inc.--Class B 1,000 26,420 Foundry Networks, Inc.* 1,200 25,812 Juniper Networks, Inc.* 1,600 23,872 Brooktrout, Inc.* .... 1,700 13,090 Harris Corp. ......... 323 11,560 WilTel Communications Group, Inc.* ....... 600 9,588 Golden Telecom, Inc.* 300 8,202 Boston Communications Group, Inc.* ....... 700 6,980 ---------- TOTAL COMMON STOCKS (Cost $6,476,814) .. 8,930,815 ---------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 TELECOMMUNICATIONS FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 1.2% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $24,890 $ 24,890 0.94% due 10/01/03 ................................. 1,772 1,772 0.93% due 10/01/03 ................................. 24,890 24,890 0.91% due 10/01/03 ................................. 24,890 24,890 0.90% due 10/01/03 ................................. 35,137 35,137 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $111,579) .................................... 111,579 ---------- TOTAL INVESTMENTS 100% (Cost $6,588,393) .................................. $9,042,394 ---------- ---------- See Notes to Financial Statements. 32 TRANSPORTATION FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 99.4% United Parcel Service, Inc.--Class B+ ..... 21,310 $ 1,359,578 Union Pacific Corp. .. 13,144 764,586 FedEx Corp. .......... 10,520 677,804 Burlington Northern Santa Fe Corp. ..... 23,408 675,789 JB Hunt Transport Services, Inc.*+ ... 21,870 569,057 Norfolk Southern Corp. 30,023 555,426 Southwest Airlines Co.+ 30,985 548,435 CH Robinson Worldwide, Inc. .... 11,219 417,459 CNF, Inc. ............ 11,064 354,601 Ryder System, Inc. ... 11,931 349,817 CSX Corp.+ ........... 11,477 335,702 Yellow Corp.*+ ....... 9,740 291,031 EGL, Inc.* ........... 15,401 279,990 USF Corp. ............ 8,690 273,474 Alaska Air Group, Inc.*+ ............. 9,770 271,801 Arkansas Best Corp. .. 9,406 258,665 Roadway Corp. ........ 5,002 243,948 Expeditors International Washington, Inc. ... 6,806 234,194 Alexander & Baldwin, Inc. ............... 8,147 228,768 Swift Transportation Co., Inc.*+ ............. 6,762 153,430 Frontier Airlines, Inc.*+ ............. 9,040 148,798 Mesa Air Group, Inc.*+ 12,280 136,308 Werner Enterprises, Inc. 5,310 121,652 Delta Air Lines, Inc. 7,963 105,908 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- ExpressJet Holdings, Inc.*+ ............. 7,531 $ 103,928 Pacer International, Inc.* .............. 5,100 101,643 Heartland Express, Inc. 4,163 99,995 SkyWest, Inc. ........ 4,656 80,642 Knight Transportation, Inc.* .............. 2,937 73,631 Landstar System, Inc.* 1,090 66,512 Genesee & Wyoming, Inc.--Class A* ..... 2,580 61,172 AirTran Holdings, Inc.* 3,470 58,123 Forward Air Corp.* ... 1,653 45,705 Kirby Corp.* ......... 1,571 45,088 Kansas City Southern* 3,974 43,992 Old Dominion Freight Line, Inc.* ........ 200 5,818 ----------- TOTAL COMMON STOCKS (Cost $9,215,138) .. 10,142,470 ----------- FACE AMOUNT ------ REPURCHASE AGREEMENTS 0.6% Repurchase Agreement (Note 4) 0.96% due 10/01/03 . $14,480 14,480 0.94% due 10/01/03 . 1,031 1,031 0.93% due 10/01/03 . 14,480 14,480 0.91% due 10/01/03 . 14,480 14,480 0.90% due 10/01/03 . 20,443 20,443 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $64,914) ..... 64,914 ----------- TOTAL INVESTMENTS 100% (Cost $9,280,052) .. $10,207,384 ----------- ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 UTILITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- COMMON STOCKS 98.6% Southern Co.+ ........ 54,370 $ 1,594,128 Duke Energy Corp.+ ... 77,357 1,377,728 Dominion Resources, Inc. /VA+ .......... 21,945 1,358,395 Exelon Corp. ......... 19,477 1,236,789 Progress Energy, Inc.+ 27,709 1,231,942 FPL Group, Inc.+ ..... 19,467 1,230,314 PG&E Corp.*+ ......... 50,707 1,211,897 Public Service Enterprise Group, Inc. ........ 27,567 1,157,814 American Electric Power Co., Inc.+ ......... 36,662 1,099,860 PPL Corp.+ ........... 24,370 997,952 Kinder Morgan, Inc. .. 18,409 994,281 Williams Cos., Inc.+ . 101,068 952,061 Entergy Corp. ........ 16,727 905,767 Wisconsin Energy Corp. 26,481 809,524 SCANA Corp.+ ......... 23,596 808,163 Constellation Energy Group, Inc. ........ 21,487 768,805 TXU Corp.+ ........... 32,408 763,532 Sempra Energy ........ 24,951 732,561 Cinergy Corp. ........ 19,617 719,944 NSTAR+ ............... 14,893 707,418 Consolidated Edison, Inc.+ .............. 17,062 695,447 DPL, Inc. ............ 40,479 694,215 MDU Resources Group, Inc. ................. 20,544 693,976 Alliant Energy Corp.+ 30,910 680,020 Great Plains Energy, Inc.+ .............. 22,238 674,256 FirstEnergy Corp. .... 20,708 660,585 Edison International*+ 33,320 636,412 OGE Energy Corp.+ .... 27,996 632,430 AGL Resources, Inc. .. 22,388 630,670 Ameren Corp.+ ........ 14,025 601,813 Philadelphia Suburban Corp. ................ 24,680 594,294 AES Corp.*+ .......... 79,904 592,888 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------- Westar Energy, Inc.+ . 31,834 $ 587,337 Energy East Corp. .... 25,576 573,670 Nicor, Inc.+ ......... 16,314 573,274 Peoples Energy Corp.+ 13,852 573,196 Xcel Energy, Inc.+ ... 37,013 572,591 Pinnacle West Capital Corp. .............. 15,998 567,929 WGL Holdings, Inc. ... 20,554 566,879 Aquila, Inc.*+ ....... 166,534 562,885 DTE Energy Co.+ ...... 15,074 556,080 PNM Resources, Inc. .. 19,016 533,209 NiSource, Inc.+ ...... 26,188 523,236 KeySpan Corp. ........ 14,783 518,588 Black Hills Corp. .... 16,000 493,760 EL Paso Corp.+ ....... 59,355 433,292 WPS Resources Corp. .. 10,498 432,518 Northeast Utilities .. 23,466 420,511 Allegheny Energy, Inc.* 42,006 383,935 Questar Corp. ........ 11,544 355,671 CenterPoint Energy, Inc. ............... 36,676 336,319 Pepco Holdings, Inc. . 17,986 310,798 Puget Energy, Inc. ... 13,700 307,291 Equitable Resources, Inc. ............... 7,022 288,604 TECO Energy, Inc.+ ... 20,875 288,493 Calpine Corp.*+ ...... 55,557 271,674 National Fuel Gas Co. 8,963 204,805 ONEOK, Inc. .......... 9,744 196,536 Hawaiian Electric Industries, Inc. ... 4,400 191,532 Duquesne Light Holdings, Inc. ............... 11,700 180,648 Vectren Corp. ........ 7,634 180,315 Dynegy, Inc.--Class A*+ 45,684 164,462 CMS Energy Corp. ..... 16,614 122,445 IDACORP, Inc. ........ 3,800 96,900 Sierra Pacific Resources Corp.*+ ............ 4,434 21,505 ----------- TOTAL COMMON STOCKS (Cost $37,691,979) . 40,836,769 ----------- * NON-INCOME PRODUCING SECURITIES + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2003--SEE NOTE 8. See Notes to Financial Statements. 34 UTILITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 1.4% Repurchase Agreement (Note 4) 0.96% due 10/01/03 ................................. $129,114 $ 129,114 0.94% due 10/01/03 ................................. 9,192 9,192 0.93% due 10/01/03 ................................. 129,114 129,114 0.91% due 10/01/03 ................................. 129,114 129,114 0.90% due 10/01/03 ................................. 182,279 182,279 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $578,813) .................................... 578,813 ----------- TOTAL INVESTMENTS 100% (Cost $38,270,792) ................................. $41,415,582 ----------- ----------- See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 -------------------------------------------------------------------------------- This page intentionally left blank. 36 & 37 SEMI-ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003 --------------------------------------------------------------------------------
BASIC BIOTECH- CONSUMER BANKING MATERIALS NOLOGY PRODUCTS ELECTRONICS FUND FUND FUND FUND FUND ------- --------- ----------- -------- ----------- ASSETS Securities at Value (Notes 1 and 4)* . $ 9,151,872 $ 7,288,511 $178,058,883 $19,300,508 $ 47,900,288 Collateral for Securities Loaned (Note 8) ........................... 1,086,523 2,696,991 71,262,898 2,148,000 21,097,893 Receivable for Securities Sold (Note 1) 176,495 7,043,716 11,188,941 -- 31,848,552 Receivable for Shares Purchased ...... 144,316 880,230 304,403 193,744 590,712 Investment Income Receivable (Note 1) 21,605 22,256 -- 24,735 313 Other Assets ......................... -- 601 1,409,557 -- -- ------------ ----------- ------------ ----------- ------------ TOTAL ASSETS ....................... 10,580,811 17,932,305 262,224,682 21,666,987 101,437,758 ------------ ----------- ------------ ----------- ------------ LIABILITIES Payable upon Return of Securities Loaned (Note 8) .................... 1,086,523 2,696,991 71,262,898 2,148,000 21,097,893 Payable for Securities Purchased (Note 1) -- -- -- -- 315,473 Liability for Shares Redeemed ........ 263,565 8,031,020 9,087,580 162,796 32,475,852 Investment Advisory Fee Payable (Note 2) 7,044 14,577 133,388 9,568 64,759 Transfer Agent Fee Payable (Note 2) .. 2,072 4,287 39,232 2,814 19,047 Distribution and Service Fee Payable (Note 2) 300 651 3,131 1,078 2,344 Portfolio Accounting Fee Payable (Note 2) 829 1,715 15,687 1,126 7,619 Custody Fees Payable ................. 279 584 5,618 371 2,514 Cash Payable to Custodian Bank ....... -- -- 1,273,723 -- -- Other Liabilities .................... 1,109 2,354 20,927 1,518 10,197 ------------ ----------- ------------ ----------- ------------ TOTAL LIABILITIES .................. 1,361,721 10,752,179 81,842,184 2,327,271 53,995,698 ------------ ----------- ------------ ----------- ------------ NET ASSETS (NOTE 7) .................. $ 9,219,090 $ 7,180,126 $180,382,498 $19,339,716 $ 47,442,060 ------------ ----------- ------------ ----------- ------------ ------------ ----------- ------------ ----------- ------------ INVESTOR CLASS: Net Assets ........................... $8,299,026 $5,836,333 $156,234,566 $2,061,764 $37,761,144 Shares Outstanding ................... 943,872 279,347 8,331,055 83,244 3,159,338 Net Asset Value Per Share ............ $8.79 $20.89 $18.75 $24.77 $11.95 ADVISOR CLASS: Net Assets ........................... $717,140 $784,551 $22,058,213 $17,004,731 $8,605,944 Shares Outstanding ................... 84,587 38,374 1,214,120 701,487 741,340 Net Asset Value Per Share ............ $8.48 $20.45 $18.17 $24.24 $11.61 C CLASS: Net Assets ........................... $202,924 $559,242 $2,089,719 $273,221 $1,074,972 Shares Outstanding ................... 23,840 27,457 114,400 11,272 92,378 Net Asset Value Per Share ............ $8.51 $20.37 $18.27 $24.24 $11.64 ENERGY FINANCIAL HEALTH ENERGY SERVICES SERVICES CARE FUND FUND FUND FUND ------ ---------- ----------- ----------- ASSETS Securities at Value (Notes 1 and 4)* . $16,809,673 $18,323,239 $31,495,098 $29,015,470 Collateral for Securities Loaned (Note 8) ........................... 2,401,818 3,781,502 4,611,859 4,118,652 Receivable for Securities Sold (Note 1) -- -- 2,241,810 5,407,285 Receivable for Shares Purchased ...... 625,740 748,748 43,754 223,887 Investment Income Receivable (Note 1) 8,904 8,141 63,067 13,506 Other Assets ......................... -- -- -- -- ----------- ----------- ----------- ----------- TOTAL ASSETS ....................... 19,846,135 22,861,630 38,455,588 38,778,800 ----------- ----------- ----------- ----------- LIABILITIES Payable upon Return of Securities Loaned (Note 8) .................... 2,401,818 3,781,502 4,611,859 4,118,652 Payable for Securities Purchased (Note 1) -- -- -- -- Liability for Shares Redeemed ........ 353,524 164,514 2,067,887 5,365,787 Investment Advisory Fee Payable (Note 2) 11,050 31,444 24,424 27,209 Transfer Agent Fee Payable (Note 2) .. 3,250 9,248 7,183 8,003 Distribution and Service Fee Payable (Note 2) 552 733 2,214 2,401 Portfolio Accounting Fee Payable (Note 2) 1,300 3,699 2,873 3,201 Custody Fees Payable ................. 515 3,747 966 1,056 Cash Payable to Custodian Bank ....... -- 895 -- -- Other Liabilities .................... 1,749 5,001 3,802 4,280 ----------- ----------- ----------- ----------- TOTAL LIABILITIES .................. 2,773,758 4,000,783 6,721,208 9,530,589 ----------- ----------- ----------- ----------- NET ASSETS (NOTE 7) .................. $17,072,377 $18,860,847 $31,734,380 $29,248,211 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- INVESTOR CLASS: Net Assets ........................... $14,346,680 $16,316,371 $11,716,893 $10,733,490 Shares Outstanding ................... 1,480,571 919,390 1,246,261 960,024 Net Asset Value Per Share ............ $9.69 $17.75 $9.40 $11.18 ADVISOR CLASS: Net Assets ........................... $1,366,166 $1,135,105 $19,235,742 $17,174,479 Shares Outstanding ................... 143,971 65,511 2,076,830 1,579,836 Net Asset Value Per Share ............ $9.49 $17.33 $9.26 $10.87 C CLASS: Net Assets ........................... $1,359,531 $1,409,371 $781,745 $1,340,242 Shares Outstanding ................... 143,648 81,309 84,739 122,908 Net Asset Value Per Share ............ $9.46 $17.33 $9.23 $10.90
*THE COST OF SECURITIES AT VALUE IS $7,755,449, $6,388,946, $136,780,144, $17,822,121, $31,301,581, $15,986,165, $15,059,128, $26,926,901, AND $23,696,303, RESPECTIVELY. See Notes to Financial Statements. 38 & 39 SEMI-ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED) September 30, 2003 --------------------------------------------------------------------------------
PRECIOUS INTERNET LEISURE METALS RETAILING TECHNOLOGY FUND FUND FUND FUND FUND -------- ------- -------- --------- ---------- ASSETS Securities at Value (Notes 1 and 4)* ........... $14,686,808 $4,678,091 $173,351,638 $17,859,526 $43,635,864 Collateral for Securities Loaned (Note 8) ...... 6,590,067 477,949 76,910,089 3,769,069 13,389,957 Receivable for Securities Sold (Note 1) ........ 1,409,601 1,077,960 21,276,970 3,616,226 20,716,873 Receivable for Shares Purchased ................ 535,627 11,860 4,163,895 26,121 134,832 Investment Income Receivable (Note 1) .......... 5 3,056 8,703 17,467 11,192 ----------- ---------- ------------ ----------- ----------- TOTAL ASSETS ................................. 23,222,108 6,248,916 275,711,295 25,288,409 77,888,718 ----------- ---------- ------------ ----------- ----------- LIABILITIES Payable upon Return of Securities Loaned (Note 8) 6,590,067 477,949 76,910,089 3,769,069 13,389,957 Payable for Securities Purchased (Note 1) ...... -- -- -- -- -- Liability for Shares Redeemed .................. 1,692,307 1,045,917 7,690,668 3,970,862 20,717,618 Investment Advisory Fee Payable (Note 2) ....... 12,239 6,404 160,736 32,394 49,612 Transfer Agent Fee Payable (Note 2) ............ 3,600 1,884 53,579 9,528 14,592 Distribution and Service Fee Payable (Note 2) .. 800 451 1,698 1,855 3,465 Portfolio Accounting Fee Payable (Note 2) ...... 1,440 753 20,976 3,811 5,837 Custody Fees Payable ........................... 475 249 7,166 1,268 1,926 Cash Payable to Custodian Bank ................. -- -- 15,994,758 -- -- Other Liabilities .............................. 1,871 983 28,924 5,066 11,027 ----------- ---------- ------------ ----------- ----------- TOTAL LIABILITIES ............................ 8,302,799 1,534,590 100,868,594 7,793,853 34,194,034 ----------- ---------- ------------ ----------- ----------- NET ASSETS (NOTE 7) ............................ $14,919,309 $4,714,326 $174,842,701 $17,494,556 $43,694,684 ----------- ---------- ------------ ----------- ----------- ----------- ---------- ------------ ----------- ----------- INVESTOR CLASS: Net Assets ..................................... $9,901,251 $4,081,657 $162,023,850 $7,156,168 $18,165,683 Shares Outstanding ............................. 347,797 183,637 4,582,089 697,700 1,800,492 Net Asset Value Per Share ...................... $28.47 $22.23 $35.36 $10.26 $10.09 ADVISOR CLASS: Net Assets ..................................... $4,573,747 $483,693 $4,811,304 $9,979,003 $24,385,042 Shares Outstanding ............................. 163,968 22,472 136,179 993,973 2,471,722 Net Asset Value Per Share ...................... $27.89 $21.52 $35.33 $10.04 $9.87 C CLASS: Net Assets ..................................... $444,311 $148,976 $8,007,547 $359,385 $1,143,959 Shares Outstanding ............................. 15,984 6,853 231,337 36,097 116,091 Net Asset Value Per Share ...................... $27.80 $21.74 $34.61 $9.96 $9.85 TELECOM- TRANS- MUNICATIONS PORTATION UTILITIES FUND FUND FUND ----------- --------- --------- ASSETS Securities at Value (Notes 1 and 4)* ........... $9,042,394 $10,207,384 $41,415,582 Collateral for Securities Loaned (Note 8) ...... 2,753,415 2,884,681 7,656,523 Receivable for Securities Sold (Note 1) ........ 1,383,100 5,765,105 2,948,573 Receivable for Shares Purchased ................ 169,688 116,591 111,935 Investment Income Receivable (Note 1) .......... 8,743 14,561 44,425 ---------- ----------- ----------- TOTAL ASSETS ................................. 13,357,340 18,988,322 52,177,038 ---------- ----------- ----------- LIABILITIES Payable upon Return of Securities Loaned (Note 8) 2,753,415 2,884,681 7,656,523 Payable for Securities Purchased (Note 1) ...... -- -- -- Liability for Shares Redeemed .................. 1,467,525 5,754,822 3,471,236 Investment Advisory Fee Payable (Note 2) ....... 9,771 12,037 18,154 Transfer Agent Fee Payable (Note 2) ............ 2,874 3,540 5,339 Distribution and Service Fee Payable (Note 2) .. 573 907 1,527 Portfolio Accounting Fee Payable (Note 2) ...... 1,150 1,416 2,136 Custody Fees Payable ........................... 557 467 721 Cash Payable to Custodian Bank ................. -- -- -- Other Liabilities .............................. 1,543 1,927 2,854 ---------- ----------- ----------- TOTAL LIABILITIES ............................ 4,237,408 8,659,797 11,158,490 ---------- ----------- ----------- NET ASSETS (NOTE 7) ............................ $9,119,932 $10,328,525 $41,018,548 ---------- ----------- ----------- ---------- ----------- ----------- INVESTOR CLASS: Net Assets ..................................... $7,132,857 $4,306,066 $23,796,459 Shares Outstanding ............................. 558,696 237,860 1,207,623 Net Asset Value Per Share ...................... $12.77 $18.10 $19.71 ADVISOR CLASS: Net Assets ..................................... $808,949 $5,802,355 $8,694,167 Shares Outstanding ............................. 64,934 335,564 449,888 Net Asset Value Per Share ...................... $12.46 $17.29 $19.33 C CLASS: Net Assets ..................................... $1,178,126 $220,104 $8,527,922 Shares Outstanding ............................. 94,416 12,367 447,178 Net Asset Value Per Share ...................... $12.48 $17.80 $19.07
*THE COST OF SECURITIES AT VALUE IS $12,429,126, $3,686,770, $126,872,715, $12,705,962, $36,064,666, $6,588,393, $9,280,052, AND $38,270,792, RESPECTIVELY. See Notes to Financial Statements. 40 & 41 SEMI-ANNUAL REPORT STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003 -------------------------------------------------------------------------------
BASIC BIOTECH- CONSUMER BANKING MATERIALS NOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND --------- ---------- ----------- ---------- ----------- ---------- INVESTMENT INCOME Interest (Note 1) .................. $ 792 $ 655 $ 9,458 $ 1,144 $ 3,996 $ 828 Interest from Securities Lending ... 327 153 42,699 486 1,950 457 Dividends, Net of Foreign Tax Withheld* (Note 1) ......................... 206,156 126,726 -- 116,928 44,376 179,286 ---------- ---------- ----------- ---------- ----------- ---------- Total Income ................... 207,275 127,534 52,157 118,558 50,322 180,571 ---------- ---------- ----------- ---------- ----------- ---------- EXPENSES Advisory Fees (Note 2) ............. 60,665 49,267 760,006 57,441 292,265 66,903 Transfer Agent Fees (Note 2) ....... 17,843 14,490 223,531 16,894 85,960 19,677 Distribution & Service Fees: (Note 2) Advisor Class .................. 7,242 10,222 62,161 23,134 44,599 16,493 C Class ........................ 2,116 2,463 12,378 1,511 11,087 5,299 Accounting Fees (Note 2) ........... 7,137 5,796 89,389 6,758 34,384 7,871 Registration Fees .................. 4,389 3,289 40,277 4,820 13,641 4,770 Trustees' Fees ..................... 341 219 3,387 359 1,193 355 Custodian Fees ..................... 2,717 2,359 31,626 2,355 12,042 2,880 Miscellaneous ...................... 1,533 2,418 39,692 1,088 18,231 2,081 ---------- ---------- ----------- ---------- ----------- ---------- Total Expenses ................. 103,983 90,523 1,262,447 114,360 513,402 126,329 ---------- ---------- ----------- ---------- ----------- ---------- Net Investment Income (Loss) ....... 103,292 37,011 (1,210,290) 4,198 (463,080) 54,242 ---------- ---------- ----------- ---------- ----------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities .............. 1,663,237 1,322,414 31,123,863 1,138,998 5,792,077 1,370,680 ---------- ---------- ----------- ---------- ----------- ---------- Total Net Realized Gain (Loss) . 1,663,237 1,322,414 31,123,863 1,138,998 5,792,077 1,370,680 ---------- ---------- ----------- ---------- ----------- ---------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities .............. 635,420 124,513 9,162,141 944,349 11,401,983 (394,522) ---------- ---------- ----------- ---------- ----------- ---------- Net Change in Unrealized Appreciation (Depreciation) ................... 635,420 124,513 9,162,141 944,349 11,401,983 (394,522) ---------- ---------- ----------- ---------- ----------- ---------- Net Gain (Loss) on Investments ..... 2,298,657 1,446,927 40,286,004 2,083,347 17,194,060 976,158 ---------- ---------- ----------- ---------- ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ......................... $2,401,949 $1,483,938 $39,075,714 $2,087,545 $16,730,980 $1,030,400 ---------- ---------- ----------- ---------- ----------- ---------- ---------- ---------- ----------- ---------- ----------- ---------- ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ----------- ---------- ---------- INVESTMENT INCOME Interest (Note 1) .................. $ 2,703 $ 2,700 $ 2,245 Interest from Securities Lending ... 974 1,239 3,187 Dividends, Net of Foreign Tax Withheld* (Note 1) ......................... 54,693 479,336 149,928 ----------- ---------- ---------- Total Income ................... 58,370 483,275 155,360 ----------- ---------- ---------- EXPENSES Advisory Fees (Note 2) ............. 109,098 176,436 173,117 Transfer Agent Fees (Note 2) ....... 32,088 51,893 50,917 Distribution & Service Fees: (Note 2) Advisor Class .................. 7,876 63,888 55,425 C Class ........................ 4,376 3,259 9,430 Accounting Fees (Note 2) ........... 12,835 20,757 20,367 Registration Fees .................. 6,803 9,761 10,729 Trustees' Fees ..................... 479 844 855 Custodian Fees ..................... 7,418 7,686 7,782 Miscellaneous ...................... 5,292 8,334 7,044 ----------- ---------- ---------- Total Expenses ................. 186,265 342,858 335,666 ----------- ---------- ---------- Net Investment Income (Loss) ....... (127,895) 140,417 (180,306) ----------- ---------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities .............. (5,421,793) 4,650,408 4,687,519 ----------- ---------- ---------- Total Net Realized Gain (Loss) . (5,421,793) 4,650,408 4,687,519 ----------- ---------- ---------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities .............. (554,604) 2,177,497 999,141 ----------- ---------- ---------- Net Change in Unrealized Appreciation (Depreciation) ................... (554,604) 2,177,497 999,141 ----------- ---------- ---------- Net Gain (Loss) on Investments ..... (5,976,397) 6,827,905 5,686,660 ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ......................... $(6,104,292) $6,968,322 $5,506,354 ----------- ---------- ---------- ----------- ---------- ----------
* NET OF FOREIGN TAX WITHHELD OF $124, $56, $0, $0, $200, $13,649, $0, $188, AND $250, RESPECTIVELY. See Notes to Financial Statements. 42 & 43 SEMI-ANNUAL REPORT STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED) Period Ended September 30, 2003 --------------------------------------------------------------------------------
PRECIOUS INTERNET LEISURE METALS RETAILING TECHNOLOGY FUND FUND FUND FUND FUND --------- ---------- ----------- ---------- ----------- INVESTMENT INCOME Interest (Note 1) .............................. $ 934 $ 649 $ 10,107 $ 2,059 $ 3,041 Interest from Securities Lending ............... 212 830 25,424 1,690 395 Dividends, Net of Foreign Tax Withheld* (Note 1) 2,625 32,964 907,134 99,305 58,035 ---------- ---------- ----------- ---------- ----------- Total Income ............................... 3,771 34,443 942,665 103,054 61,471 ---------- ---------- ----------- ---------- ----------- EXPENSES Advisory Fees (Note 2) ......................... 64,781 44,540 539,737 157,562 222,398 Transfer Agent Fees (Note 2) ................... 19,053 13,100 179,912 46,342 65,411 Distribution & Service Fees: (Note 2) Advisor Class .............................. 13,281 10,044 4,865 50,532 64,148 C Class .................................... 3,842 1,054 25,792 6,093 17,620 Accounting Fees (Note 2) ....................... 7,621 5,240 71,509 18,537 26,165 Registration Fees .............................. 3,436 2,314 22,470 7,078 10,629 Trustees' Fees ................................. 357 235 1,858 674 910 Custodian Fees ................................. 2,648 1,966 25,275 6,981 9,563 Miscellaneous .................................. 3,500 2,233 48,256 9,876 13,524 ---------- ---------- ----------- ---------- ----------- Total Expenses ............................. 118,519 80,726 919,674 303,675 430,368 ---------- ---------- ----------- ---------- ----------- Net Investment Income (Loss) ................... (114,748) (46,283) 22,991 (200,621) (368,897) ---------- ---------- ----------- ---------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities .......................... (26,759) 463,157 (1,331,319) 2,198,051 6,993,077 ---------- ---------- ----------- ---------- ----------- Total Net Realized Gain (Loss) ............. (26,759) 463,157 (1,331,319) 2,198,051 6,993,077 ---------- ---------- ----------- ---------- ----------- Net Change in Unrealized Appreciation on: Investment Securities .......................... 1,436,455 559,114 28,800,687 2,988,631 5,221,403 ---------- ---------- ----------- ---------- ----------- Net Change in Unrealized Appreciation .......... 1,436,455 559,114 28,800,687 2,988,631 5,221,403 ---------- ---------- ----------- ---------- ----------- Net Gain on Investments ........................ 1,409,696 1,022,271 27,469,368 5,186,682 12,214,480 ---------- ---------- ----------- ---------- ----------- NET INCREASE IN NET ASSETS FROM OPERATIONS ....... $1,294,948 $ 975,988 $27,492,359 $4,986,061 $11,845,583 ---------- ---------- ----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------- TELECOM- TRANS- MUNICATIONS PORTATION UTILITIES FUND FUND FUND ----------- ---------- ---------- INVESTMENT INCOME Interest (Note 1) .............................. $ 664 $ 585 $ 1,351 Interest from Securities Lending ............... 1,520 317 3,176 Dividends, Net of Foreign Tax Withheld* (Note 1) 129,597 51,700 492,672 ---------- ---------- ---------- Total Income ............................... 131,781 52,602 497,199 ---------- ---------- ---------- EXPENSES Advisory Fees (Note 2) ......................... 57,350 42,218 108,693 Transfer Agent Fees (Note 2) ................... 16,868 12,417 31,969 Distribution & Service Fees: (Note 2) Advisor Class .............................. 3,413 14,115 15,596 C Class .................................... 7,143 1,787 10,437 Accounting Fees (Note 2) ....................... 6,747 4,967 12,787 Registration Fees .............................. 5,146 3,159 5,757 Trustees' Fees ................................. 399 223 445 Custodian Fees ................................. 2,535 1,783 4,583 Miscellaneous .................................. 739 1,511 5,425 ---------- ---------- ---------- Total Expenses ............................. 100,340 82,180 195,692 ---------- ---------- ---------- Net Investment Income (Loss) ................... 31,441 (29,578) 301,507 ---------- ---------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities .......................... 833,445 224,129 2,250,547 ---------- ---------- ---------- Total Net Realized Gain (Loss) ............. 833,445 224,129 2,250,547 ---------- ---------- ---------- Net Change in Unrealized Appreciation on: Investment Securities .......................... 1,173,466 783,758 1,594,645 ---------- ---------- ---------- Net Change in Unrealized Appreciation .......... 1,173,466 783,758 1,594,645 ---------- ---------- ---------- Net Gain on Investments ........................ 2,006,911 1,007,887 3,845,192 ---------- ---------- ---------- NET INCREASE IN NET ASSETS FROM OPERATIONS ....... $2,038,352 $ 978,309 $4,146,699 ---------- ---------- ---------- ---------- ---------- ----------
*NET OF FOREIGN TAX WITHHELD OF $0, $0, $37,434, $0, $3,044, $252, $0, AND $0, RESPECTIVELY. See Notes to Financial Statements. 44 & 45 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
BANKING FUND BASIC MATERIALS FUND --------------------------- --------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------- ---------- ------------- ----------- FROM OPERATIONS Net Investment Income ......................... $ 103,292 $ 356,448 $ 37,011 $ 55,273 Net Realized Gain (Loss) on Investments ....... 1,663,237 (3,906,801) 1,322,414 (6,660,315) Net Change in Unrealized Appreciation (Depreciation) on Investments .............................. 635,420 (3,508,252) 124,513 (8,072,486) ---------- ----------- ---------- ------------ Net Increase (Decrease) in Net Assets from Operations .................................. 2,401,949 (7,058,605) 1,483,938 (14,677,528) ---------- ----------- ---------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income: Investor Class ............................ -- (283,085) -- (54,496) Advisor Class ............................. -- (228,653) -- (4,773) C Class ................................... -- (12,291) -- (654) ---------- ----------- ---------- ------------ Total Distributions to Shareholders ........... -- (524,029) -- (59,923) ---------- ----------- ---------- ------------ NET DECREASE IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .............. (1,001,446) (36,886,563) (375,858) (56,270,619) ---------- ----------- ---------- ------------ Net Increase (Decrease) in Net Assets ......... 1,400,503 (44,469,197) 1,108,080 (71,008,070) NET ASSETS--BEGINNING OF PERIOD ................. 7,818,587 52,287,784 6,072,046 77,080,116 ---------- ----------- ---------- ------------ NET ASSETS--END OF PERIOD (NOTE 7) ............. $9,219,090 $ 7,818,587 $7,180,126 $ 6,072,046 ---------- ----------- ---------- ------------ ---------- ----------- ---------- ------------ BIOTECHNOLOGY FUND CONSUMER PRODUCTS FUND ------------------------ -------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------- ------------ ------------- ---------- FROM OPERATIONS Net Investment Income (Loss) .................. $ (1,210,290) $ (2,069,442) $ 4,198 $ 44,155 Net Realized Gain (Loss) on Investments ....... 31,123,863 (52,849,546) 1,138,998 (2,889,425) Net Change in Unrealized Appreciation (Depreciation) on Investments .............................. 9,162,141 (31,384,976) 944,349 (4,666,953) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets from Operations .................................. 39,075,714 (86,303,964) 2,087,545 (7,512,223) ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income: Investor Class ............................ -- -- -- (35,879) Advisor Class ............................. -- -- -- (39,035) C Class ................................... -- -- -- (3,854) ------------ ------------ ----------- ----------- Total Distributions to Shareholders ........... -- -- -- (78,768) ------------ ------------ ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .............. 4,356,827 (16,907,096) 12,296,027 (41,238,368) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets ......... 43,432,541 (103,211,060) 14,383,572 (48,829,359) NET ASSETS--BEGINNING OF PERIOD ................. 136,949,957 240,161,017 4,956,144 53,785,503 ------------ ------------ ----------- ----------- NET ASSETS--END OF PERIOD (NOTE 7) ............. $180,382,498 $136,949,957 $19,339,716 $ 4,956,144 ------------ ------------ ----------- ----------- ------------ ------------ ----------- -----------
* UNAUDITED See Notes to Financial Statements. 46 & 47 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) -------------------------------------------------------------------------------
ELECTRONICS FUND ENERGY FUND --------------------------- --------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------- ----------- ------------ --------- FROM OPERATIONS Net Investment Income (Loss) ................ $ (463,080) $ (606,663) $ 54,242 $ 19,029 Net Realized Gain (Loss) on Investments ..... 5,792,077 (31,409,827) 1,370,680 (5,211,068) Net Change in Unrealized Appreciation (Depreciation) on Investments ............................ 11,401,983 (17,096,917) (394,522) (3,590,764) ------------ ----------- ----------- ------------ Net Increase (Decrease) in Net Assets from Operations ................................ 16,730,980 (49,113,407) 1,030,400 (8,782,803) ------------ ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income: Investor Class .......................... -- -- -- (5,308) Advisor Class ........................... -- -- -- (7,328) C Class ................................. -- -- -- (166) ------------ ----------- ----------- ------------ Total Distributions to Shareholders ......... -- -- -- (12,802) ------------ ----------- ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) ............ (9,273,283) (17,489,349) 2,828,628 (19,773,177) ------------ ----------- ----------- ------------ Net Increase (Decrease) in Net Assets ....... 7,457,697 (66,602,756) 3,859,028 (28,568,782) NET ASSETS--BEGINNING OF PERIOD ............... 39,984,363 106,587,119 13,213,349 41,782,131 ------------ ----------- ----------- ------------ NET ASSETS--END OF PERIOD (NOTE 7) ............ $47,442,060 $ 39,984,363 $17,072,377 $ 13,213,349 ------------ ----------- ----------- ------------ ------------ ----------- ----------- ------------ ENERGY SERVICES FUND FINANCIAL SERVICES FUND --------------------------- -------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ----------- --------- ------------ --------- FROM OPERATIONS Net Investment Income (Loss) ................ $ (127,895) $ (315,096) $ 140,417 $ 210,444 Net Realized Gain (Loss) on Investments ..... (5,421,793) (5,236,750) 4,650,408 (7,407,624) Net Change in Unrealized Appreciation (Depreciation) on Investments ............................ (554,604) (9,991,027) 2,177,497 (7,414,327) ----------- ------------ ----------- ----------- Net Increase (Decrease) in Net Assets from Operations ................................ (6,104,292) (15,542,873) 6,968,322 (14,611,507) ----------- ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income: Investor Class .......................... -- -- -- (44,843) Advisor Class ........................... -- -- -- (35,417) C Class ................................. -- -- -- (1,105) ----------- ------------ ----------- ----------- Total Distributions to Shareholders ......... -- -- -- (81,365) ----------- ------------ ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) ............ 7,210,226 (41,431,952) 2,799,488 (29,981,125) ----------- ------------ ----------- ----------- Net Increase (Decrease) in Net Assets ....... 1,105,934 (56,974,825) 9,767,810 (44,673,997) NET ASSETS--BEGINNING OF PERIOD ............... 17,754,913 74,729,738 21,966,570 66,640,567 ----------- ------------ ----------- ----------- NET ASSETS--END OF PERIOD (NOTE 7) ............ $18,860,847 $ 17,754,913 $31,734,380 $21,966,570 ----------- ------------ ----------- ----------- ----------- ------------ ----------- -----------
*UNAUDITED See Notes to Financial Statements. 48 & 49 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) -------------------------------------------------------------------------------
HEALTH CARE FUND INTERNET FUND -------------------------- -------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------- ---------- ------------- ---------- FROM OPERATIONS Net Investment Loss .......................... $ (180,306) $ (221,965) $ (114,748) $ (180,769) Net Realized Gain (Loss) on Investments ...... 4,687,519 (7,455,038) (26,759) (3,631,782) Net Change in Unrealized Appreciation (Depreciation) on Investments ............................. 999,141 (5,352,757) 1,436,455 460,731 ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets from Operations ............................ 5,506,354 (13,029,760) 1,294,948 (3,351,820) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- -- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .................. (13,206,392) (1,177,110) 9,338,499 3,969,039 ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets ........ (7,700,038) (14,206,870) 10,633,447 617,219 NET ASSETS--BEGINNING OF PERIOD ................ 36,948,249 51,155,119 4,285,862 3,668,643 ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD (NOTE 7) ............. $29,248,211 $36,948,249 $14,919,309 $ 4,285,862 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- LEISURE FUND PRECIOUS METALS FUND --------------------------- -------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------ ------------ -------------- ------------ FROM OPERATIONS Net Investment Income (Loss) ................. $ (46,283) $ (106,029) $ 22,991 $ 53,404 Net Realized Gain (Loss) on Investments ...... 463,157 (1,628,265) (1,331,319) (10,170,467) Net Change in Unrealized Appreciation (Depreciation) on Investments ............................. 559,114 (1,368,821) 28,800,687 (2,206,459) ----------- ------------ ------------ ------------ Net Increase (Decrease) in Net Assets from Operations ............................ 975,988 (3,103,115) 27,492,359 (12,323,522) ----------- ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- -- ----------- ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .................. (2,215,325) (11,797,316) 70,015,252 29,123,557 ----------- ------------ ------------ ------------ Net Increase (Decrease) in Net Assets ........ (1,239,337) (14,900,431) 97,507,611 16,800,035 NET ASSETS--BEGINNING OF PERIOD ................ 5,953,663 20,854,094 77,335,090 60,535,055 ----------- ------------ ------------ ------------ NET ASSETS--END OF PERIOD (NOTE 7) ............. $ 4,714,326 $ 5,953,663 $174,842,701 $ 77,335,090 ----------- ------------ ------------ ------------ ----------- ------------ ------------ ------------
* UNAUDITED See Notes to Financial Statements. 50 & 51 SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) -------------------------------------------------------------------------------
RETAILING FUND TECHNOLOGY FUND ---------------------------- --------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------- ------------ ------------- ------------ FROM OPERATIONS Net Investment Loss .......................... $ (200,621) $ (264,006) $ (368,897) $ (484,683) Net Realized Gain (Loss) on Investments ...... 2,198,051 (1,908,402) 6,993,077 (11,426,240) Net Change in Unrealized Appreciation (Depreciation) on Investments .............. 2,988,631 (8,251,654) 5,221,403 (4,693,304) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets from Operations ................................. 4,986,061 (10,424,062) 11,845,583 (16,604,227) ----------- ------------ ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- -- ----------- ------------ ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .................. (5,505,089) (31,947,472) 6,349,853 (19,903,318) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets ........ (519,028) (42,371,534) 18,195,436 (36,507,545) NET ASSETS--BEGINNING OF PERIOD ................ 18,013,584 60,385,118 25,499,248 62,006,793 ----------- ------------ ----------- ------------ NET ASSETS--END OF PERIOD (NOTE 7) ............. $17,494,556 $ 18,013,584 $43,694,684 $ 25,499,248 ----------- ------------ ----------- ------------ ----------- ------------ ----------- ------------ TELECOMMUNICATIONS FUND TRANSPORTATION FUND -------------------------- ------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2003* 2003 2003* 2003 ------------ ---------- ----------- ---------- FROM OPERATIONS Net Investment Income (Loss) ................. $ 31,441 $ 11,800 $ (29,578) $ (80,438) Net Realized Gain (Loss) on Investments ...... 833,445 (5,434,089) 224,129 (2,266,161) Net Change in Unrealized Appreciation (Depreciation) on Investments .............. 1,173,466 700,402 783,758 (6,235,044) ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets from Operations ................................. 2,038,352 (4,721,887) 978,309 (8,581,643) ----------- ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS: (NOTE 1) ........ -- -- -- -- ----------- ----------- ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .................. (3,742,418) 10,066,291 4,314,969 (29,059,008) ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets ........ (1,704,066) 5,344,404 5,293,278 (37,640,651) NET ASSETS--BEGINNING OF PERIOD ................ 10,823,998 5,479,594 5,035,247 42,675,898 ----------- ----------- ----------- ------------ NET ASSETS--END OF PERIOD (NOTE 7) ............. $ 9,119,932 $10,823,998 $10,328,525 $ 5,035,247 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ------------
* UNAUDITED See Notes to Financial Statements. 52 STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED) -------------------------------------------------------------------------------- UTILITIES FUND -------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003* 2003 ------------- ----------- FROM OPERATIONS Net Investment Income ........................ $ 301,507 $ 486,725 Net Realized Gain (Loss) on Investments ...... 2,250,547 (10,683,311) Net Change in Unrealized Appreciation (Depreciation) on Investments ............. 1,594,645 (395,831) ----------- ------------ Net Increase (Decrease) in Net Assets from Operations ................................. 4,146,699 (10,592,417) ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income: Investor Class ........................... -- (291,318) Advisor Class ............................ -- (64,540) C Class .................................. -- (14,142) ----------- ------------ Total Distributions to Shareholders .......... -- (370,000) ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 6) .................. 23,715,605 (8,665,326) ----------- ------------ Net Increase (Decrease) in Net Assets ........ 27,862,304 (19,627,743) NET ASSETS--BEGINNING OF PERIOD ................ 13,156,244 32,783,987 ----------- ------------ NET ASSETS--END OF PERIOD (NOTE 7) ............. $41,018,548 $ 13,156,244 ----------- ------------ ----------- ------------ * UNAUDITED See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 -------------------------------------------------------------------------------- This page intentionally left blank. 54 & 55 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------- INVESTOR CLASS --------------------------- BANKING FUND --------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 --------------- ---------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.30 $8.63 --------------- --------- Net Investment Income+ ........................... .06 .12 Net Realized and Unrealized Gains (Losses) on Securities ..................................... 1.43 (1.24) --------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 1.49 (1.12) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.21) --------------- --------- Net Increase (Decrease) in Net Asset Value ....... 1.49 (1.33) --------------- --------- NET ASSET VALUE--END OF PERIOD ................... $8.79 $7.30 --------------- --------- --------------- --------- TOTAL INVESTMENT RETURN .......................... 20.41% (13.15)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.33%** 1.38% Net Expenses ..................................... 1.33%** 1.38% Net Investment Income ............................ 1.52%** 1.52% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,133% 1,495% Net Assets, End of Period (000's omitted) ........ $8,299 $7,352
INVESTOR CLASS ----------------------------------------------- BANKING FUND ----------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002 2001 2000 1999* --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.27 $7.31 $8.77 $10.00 --------- --------- --------- -------- Net Investment Income+ ........................... .12 .14 .07 .01 Net Realized and Unrealized Gains (Losses) on Securities ..................................... .53 .82 (1.53) (1.24) --------- --------- --------- -------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... .65 .96 (1.46) (1.23) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... (.29) -- -- -- --------- --------- --------- -------- Net Increase (Decrease) in Net Asset Value ....... .36 .96 (1.46) (1.23) --------- --------- --------- -------- NET ASSET VALUE--END OF PERIOD ................... $8.63 $8.27 $7.31 $8.77 --------- --------- --------- -------- --------- --------- --------- -------- TOTAL INVESTMENT RETURN .......................... 8.30% 13.13% (16.65)% (12.30)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.50% 1.30% 1.58% 1.58%** Net Expenses ..................................... 1.50% 1.29% 1.57% 1.57%** Net Investment Income ............................ 1.49% 1.77% 0.87% 0.13%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,292% 1,394% 3,829% 11,211% Net Assets, End of Period (000's omitted) ........ $28,992 $38,508 $39,546 $7,827 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 56 & 57 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- INVESTOR CLASS --------------------------- BASIC MATERIALS FUND --------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003+++ 2003++ -------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $17.22 $24.30 -------------- --------- Net Investment Income+ ........................... .08 .12 Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.59 (7.17) -------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.67 (7.05) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.03) -------------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.67 (7.08) -------------- --------- NET ASSET VALUE--END OF PERIOD ................... $20.89 $17.22 -------------- --------- -------------- --------- TOTAL INVESTMENT RETURN .......................... 21.31% (29.02)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.34%** 1.39% Net Expenses ..................................... 1.34%** 1.39% Net Investment Income (Loss) ..................... 0.75%** 0.53% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,048% 1,943% Net Assets, End of Period (000's omitted) ........ $5,836 $3,360
INVESTOR CLASS ----------------------------------------------- BASIC MATERIALS FUND ----------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002++ 2001++ 2000++ 1999*++ ---------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $21.03 $23.91 $23.25 $30.00 ---------- --------- --------- --------- Net Investment Income+ ........................... .27 .18 .60 -- Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.27 (3.06) .06 (6.75) ---------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.54 (2.88) .66 (6.75) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... (.27) -- -- -- ---------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.27 (2.88) .66 (6.75) ---------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $24.30 $21.03 $23.91 $23.25 ---------- --------- --------- --------- ---------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 16.89% (12.05)% 2.84% (22.50)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.41% 1.52% 1.54% 1.62%** Net Expenses ..................................... 1.41% 1.52% 1.53% 1.61%** Net Investment Income (Loss) ..................... 1.12% 0.79% 2.21% (0.02)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,523% 2,600% 3,641% 5,704% Net Assets, End of Period (000's omitted) ........ $45,716 $16,593 $16,851 $2,179 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 58 & 59 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) ------------------------------------------------------------------------------- INVESTOR CLASS -------------------------- BIOTECHNOLOGY FUND -------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $13.75 $20.86 ------------- --------- Net Investment Loss+ ............................. (.11) (.19) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 5.11 (6.92) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 5.00 (7.11) DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ...................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ....... 5.00 (7.11) ------------- --------- NET ASSET VALUE--END OF PERIOD ................... $18.75 $13.75 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN .......................... 36.36% (34.08)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.33%** 1.38% Net Expenses ..................................... 1.33%** 1.38% Net Investment Loss .............................. (1.27)%** (1.31)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 311% 477% Net Assets, End of Period (000's omitted) ........ $156,235 $111,003
INVESTOR CLASS ---------------------------------------------- BIOTECHNOLOGY FUND ---------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002 2001 2000 1999* --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $21.66 $28.88 $12.81 $10.00 --------- --------- --------- --------- Net Investment Loss+ ............................. (.28) (.35) (.34) (.16) Net Realized and Unrealized Gains (Losses) on Securities ..................................... (.52) (6.87) 16.45 2.97 --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... (.80) (7.22) 16.11 2.81 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ...................... -- -- (.04) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... (.80) (7.22) 16.07 2.81 --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $20.86 $21.66 $28.88 $12.81 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... (3.69)% (25.00)% 125.98% 28.10% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.23% 1.24% 1.42% 1.56%** Net Expenses ..................................... 1.23% 1.23% 1.41% 1.55%** Net Investment Loss .............................. (1.20)% (1.17)% (1.29)% (1.52)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 390% 305% 699% 2,670% Net Assets, End of Period (000's omitted) ........ $218,263 $283,407 $456,303 $38,205 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 60 & 61 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) ------------------------------------------------------------------------------- INVESTOR CLASS --------------------------- CONSUMER PRODUCTS FUND --------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003+++ 2003++ ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $20.85 $25.08 ------------- --------- Net Investment Income+ ........................... .07 .12 Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.85 (4.23) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.92 (4.11) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.12) Net Realized Capital Gain ...................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.92 (4.23) ------------- --------- NET ASSET VALUE--END OF PERIOD ................... $24.77 $20.85 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN .......................... 18.80% (16.38)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.33%** 1.39% Net Expenses ..................................... 1.33%** 1.39% Net Investment Income (Loss) ..................... 0.58%** 0.53% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 464% 1,205% Net Assets, End of Period (000's omitted) ........ $2,062 $1,640
INVESTOR CLASS ----------------------------------------------- CONSUMER PRODUCTS FUND ----------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002++ 2001++ 2000++ 1999*++ --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $21.54 $22.68 $29.13 $30.00 --------- --------- --------- --------- Net Investment Income+ ........................... .12 .21 .12 -- Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.48 (1.35) (5.52) (.87) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.60 (1.14) (5.40) (.87) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... (.06) -- -- -- Net Realized Capital Gain ...................... -- -- (1.05) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.54 (1.14) (6.45) (.87) --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $25.08 $21.54 $22.68 $29.13 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 16.71% (5.03)% (19.20)% (2.90)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.56% 1.23% 1.37% 1.55%** Net Expenses ..................................... 1.56% 1.22% 1.36% 1.54%** Net Investment Income (Loss) ..................... 0.53% 0.94% 0.49% (0.03)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 890% 1,907% 5,466% 1,255% Net Assets, End of Period (000's omitted) ........ $20,083 $8,503 $9,181 $1,280 * SINCE THE COMMENCEMENT OF OPERATIONS: JULY 6, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 62 & 63 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- INVESTOR CLASS -------------------------- ELECTRONICS FUND -------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.08 $16.96 ------------- --------- Net Investment Loss+ ............................. (.07) (.12) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.94 (8.76) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.87 (8.88) DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ...................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.87 (8.88) ------------- --------- NET ASSET VALUE--END OF PERIOD ................... $11.95 $8.08 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN .......................... 47.90% (52.36)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.33%** 1.39% Net Expenses ..................................... 1.33%** 1.39% Net Investment Loss .............................. (1.18)%** (1.20)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 857% 2,413% Net Assets, End of Period (000's omitted) ........ $37,761 $31,655
INVESTOR CLASS ----------------------------------------------- ELECTRONICS FUND ----------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002 2001 2000 1999* --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $16.54 $40.10 $14.02 $10.00 --------- --------- --------- --------- Net Investment Loss+ ............................. (.18) (.36) (.30) (.15) Net Realized and Unrealized Gains (Losses) on Securities ..................................... .60 (23.02) 26.38 4.17 --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... .42 (23.38) 26.08 4.02 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ...................... -- (.18) -- -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... .42 (23.56) 26.08 4.02 --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $16.96 $16.54 $40.10 $14.02 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 2.54% (58.48)% 186.02% 40.20% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.29% 1.36% 1.29% 1.57%** Net Expenses ..................................... 1.29% 1.35% 1.28% 1.56%** Net Investment Loss .............................. (1.08)% (1.09)% (1.14)% (1.23)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,279% 705% 1,162% 3,011% Net Assets, End of Period (000's omitted) ........ $96,671 $70,131 $274,554 $12,814 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 64 & 65 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) ------------------------------------------------------------------------------- INVESTOR CLASS --------------------------- ENERGY FUND --------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.80 $11.26 ------------- --------- Net Investment Income (Loss)+ .................... .05 .02 Net Realized and Unrealized Gains (Losses) on Securities ..................................... .84 (2.47) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... .89 (2.45) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.01) ------------- --------- Net Increase (Decrease) in Net Asset Value ....... .89 (2.46) ------------- --------- NET ASSET VALUE--END OF PERIOD ................... $9.69 $8.80 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN .......................... 10.11% (21.79)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.31%** 1.39% Net Expenses ..................................... 1.31%** 1.39% Net Investment Income (Loss) ..................... 1.03%** 0.24% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 929% 1,362% Net Assets, End of Period (000's omitted) ........ $14,347 $4,703
INVESTOR CLASS ---------------------------------------------- ENERGY FUND ---------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002 2001 2000 1999* --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $11.43 $10.87 $8.99 $10.00 --------- --------- --------- --------- Net Investment Income (Loss)+ .................... .12 (.08) .08 .05 Net Realized and Unrealized Gains (Losses) on Securities ..................................... (.19) .64 1.80 (1.06) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... (.07) .56 1.88 (1.01) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... (.10) -- -- -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... (.17) .56 1.88 (1.01) --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $11.26 $11.43 $10.87 $8.99 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... (0.52)% 5.15% 20.91% (10.10)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.32% 1.64% 1.58% 1.62%** Net Expenses ..................................... 1.32% 1.63% 1.57% 1.62%** Net Investment Income (Loss) ..................... 1.06% (0.70)% 0.83% 0.69%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,502% 1,707% 2,854% 6,070% Net Assets, End of Period (000's omitted) ........ $31,769 $15,715 $13,980 $17,442 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 21, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 66 & 67 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- INVESTOR CLASS --------------------------- ENERGY SERVICES FUND --------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003+++ 2003++ ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $17.37 $22.47 ------------- --------- Net Investment Loss+ ............................. (.09) (.15) Net Realized and Unrealized Gains (Losses) on Securities ..................................... .47 (4.95) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... .38 (5.10) DISTRIBUTION TO SHAREHOLDERS ..................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ....... .38 (5.10) ------------- --------- NET ASSET VALUE--END OF PERIOD ................... $17.75 $17.37 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN .......................... 2.19% (22.70)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.36%** 1.39% Net Expenses ..................................... 1.36%** 1.39% Net Investment Loss .............................. (0.94)%** (0.72)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,191% 971% Net Assets, End of Period (000's omitted) ........ $16,316 $15,144
INVESTOR CLASS ---------------------------------------------- ENERGY SERVICES FUND ---------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002++ 2001++ 2000++ 1999*++ --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $27.30 $27.93 $18.06 $30.00 --------- --------- --------- --------- Net Investment Loss+ ............................. (.18) (.12) (.18) (.21) Net Realized and Unrealized Gains (Losses) on Securities ..................................... (4.65) (.51) 10.05 (11.73) --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... (4.83) (.63) 9.87 (11.94) DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... (4.83) (.63) 9.87 (11.94) --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $22.47 $27.30 $27.93 $18.06 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... (17.69)% (2.26)% 54.65% (39.80)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.54% 1.26% 1.58% 1.58%** Net Expenses ..................................... 1.54% 1.25% 1.57% 1.57%** Net Investment Loss .............................. (0.74)% (0.41)% (0.81)% (1.14)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 949% 944% 1,794% 3,170% Net Assets, End of Period (000's omitted) ........ $51,983 $50,159 $54,609 $74,135 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 68 & 69 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- INVESTOR CLASS -------------------------- FINANCIAL SERVICES FUND -------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $7.66 $10.23 ------------- --------- Net Investment Income (Loss)+ ..................... .05 .07 Net Realized and Unrealized Gains (Losses) on Securities ...................................... 1.69 (2.62) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 1.74 (2.55) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ........................... -- (.02) Net Realized Capital Gain ....................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ........ 1.74 (2.57) ------------- --------- NET ASSET VALUE--END OF PERIOD .................... $9.40 $7.66 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN ........................... 22.72% (24.97)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.33%** 1.38% Net Expenses ...................................... 1.33%** 1.38% Net Investment Income (Loss) ...................... 1.07%** 0.82% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 845% 2,336% Net Assets, End of Period (000's omitted) ......... $11,717 $6,671
INVESTOR CLASS ---------------------------------------------- FINANCIAL SERVICES FUND ---------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002 2001 2000 1999* --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $10.00 $9.48 $9.99 $10.00 --------- --------- --------- --------- Net Investment Income (Loss)+ ..................... .04 .06 (.01) (.01) Net Realized and Unrealized Gains (Losses) on Securities ...................................... .29 .46 (.49) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... .33 .52 (.50) (.01) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ........................... (.10) -- -- -- Net Realized Capital Gain ....................... -- -- (.01) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ .23 .52 (.51) (.01) --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $10.23 $10.00 $9.48 $9.99 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 3.39% 5.49% (4.97)% (0.10)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.51% 1.24% 1.72% 1.58%** Net Expenses ...................................... 1.51% 1.23% 1.71% 1.57%** Net Investment Income (Loss) ...................... 0.43% 0.58% (0.15)% (0.07)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,110% 1,271% 2,770% 7,269% Net Assets, End of Period (000's omitted) ......... $25,147 $35,190 $145,449 $22,165 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 70 & 71 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- INVESTOR CLASS -------------------------- HEALTH CARE FUND -------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $9.21 $11.36 ------------- --------- Net Investment Loss+ .............................. (.03) (.02) Net Realized and Unrealized Gains (Losses) on Securities ...................................... 2.00 (2.13) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 1.97 (2.15) DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ...................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ........ 1.97 (2.15) ------------- --------- NET ASSET VALUE--END OF PERIOD .................... $11.18 $9.21 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN ........................... 21.39% (18.93)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.33%** 1.38% Net Expenses ...................................... 1.33%** 1.38% Net Investment Loss ............................... (0.57)%** (0.25)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 690% 1,395% Net Assets, End of Period (000's omitted) ......... $10,733 $13,400
INVESTOR CLASS ---------------------------------------------- HEALTH CARE FUND ---------------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2002 2001 2000 1999* --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $11.25 $10.25 $11.45 $10.00 --------- --------- --------- --------- Net Investment Loss+ .............................. (.04) (.05) (.04) (.02) Net Realized and Unrealized Gains (Losses) on Securities ...................................... .15 1.05 (1.15) 1.47 --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... .11 1.00 (1.19) 1.45 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ...................... -- -- (.01) -- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ .11 1.00 (1.20) 1.45 --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $11.36 $11.25 $10.25 $11.45 --------- --------- --------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 0.98% 9.76% (10.44)% 14.50% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.37% 1.55% 1.41% 1.44%** Net Expenses ...................................... 1.37% 1.54% 1.41% 1.43%** Net Investment Loss ............................... (0.36)% (0.39)% (0.36)% (0.21)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 936% 1,399% 4,850% 4,465% Net Assets, End of Period (000's omitted) ......... $20,567 $42,495 $30,729 $14,016 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 17, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 72 & 73 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- ---------------------- INTERNET FUND INTERNET FUND -------------------------- ---------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001*++ ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $20.43 $30.55 $41.80 $200.00 ------------- --------- --------- --------- Net Investment Loss+ ............................. (.17) (.29) (.31) (1.60) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 8.21 (9.83) (10.94) (156.60) ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 8.04 (10.12) (11.25) (158.20) DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 8.04 (10.12) (11.25) (158.20) ------------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $28.47 $20.43 $30.55 $41.80 ------------- --------- --------- --------- ------------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 39.35% (33.13)% (26.91)% (79.10)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.33%** 1.38% 1.21% 1.61%** Net Expenses ..................................... 1.33%** 1.38% 1.21% 1.61%** Net Investment Loss .............................. (1.27)%** (1.34)% (1.15)% (1.43)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,013% 2,052% 2,186% 1,937% Net Assets, End of Period (000's omitted) ........ $9,901 $3,335 $3,124 $1,625 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 2000. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIOD ENDED MARCH 31, 2001 HAVE BEEN RESTATED TO REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001. +++ UNAUDITED.
See Notes to Financial Statements. 74 & 75 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- ---------------------------------------------- LEISURE FUND LEISURE FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $17.88 $24.00 $25.56 $33.30 $33.63 $30.00 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ..................... (.07) (.15) (.33) (.36) .09 (.24) Net Realized and Unrealized Gains (Losses) on Securities ...................................... 4.42 (5.97) (1.23) (7.38) (.12) 3.87 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 4.35 (6.12) (1.56) (7.74) (.03) 3.63 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ...................... -- -- -- -- (.30) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 4.35 (6.12) (1.56) (7.74) (.33) 3.63 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $22.23 $17.88 $24.00 $25.56 $33.30 $33.63 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 24.33% (25.50)% (6.10)% (23.24)% (0.07)% 12.10% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.33%** 1.38% 1.57% 1.55% 1.58% 1.59%** Net Expenses ...................................... 1.33%** 1.38% 1.57% 1.55% 1.58% 1.59%** Net Investment Income (Loss) ...................... (0.72)%** (0.65)% (1.27)% (1.18)% 0.30% (0.76)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 2,351% 3,179% 2,609% 2,756% 5,734% 5,581% Net Assets, End of Period (000's omitted) ......... $4,082 $2,325 $11,443 $1,277 $5,563 $4,796 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 76 & 77 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- ---------------------------------------------- PRECIOUS METALS FUND PRECIOUS METALS FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001 2000++ 1999++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $26.78 $27.90 $17.73 $18.80 $20.95 $29.10 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ..................... .01 .03 .01 .05 (.10) (.15) Net Realized and Unrealized Gains (Losses) on Securities ...................................... 8.57 (1.15) 10.30 (1.12) (2.05) (8.00) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 8.58 (1.12) 10.31 (1.07) (2.15) (8.15) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ........................... -- -- (.14) -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 8.58 (1.12) 10.17 (1.07) (2.15) (8.15) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $35.36 $26.78 $27.90 $17.73 $18.80 $20.95 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 32.04% (4.01)% 58.44% (5.69)% (10.26)% (28.01)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.23%* 1.27% 1.39% 1.18% 1.23% 1.37% Net Expenses ...................................... 1.23%* 1.27% 1.39% 1.17% 1.23% 1.36% Net Investment Income (Loss) ...................... 0.06%* 0.09% 0.07% 0.30% (0.34)% (0.69)% SUPPLEMENTARY DATA: Portfolio Turnover Rate** ......................... 309% 744% 839% 822% 1,004% 1,191% Net Assets, End of Period (000's omitted) ......... $162,024 $75,185 $59,625 $25,096 $37,780 $26,823 * ANNUALIZED. ** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2000 HAVE BEEN RESTARTED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000. +++ UNAUDITED.
See Notes to Financial Statements. 78 & 79 FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS --------------------------- ---------------------------------------------- RETAILING FUND RETAILING FUND --------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $8.00 $11.12 $10.29 $13.22 $13.54 $10.00 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ..................... (.04) (.07) (.10) (.09) .02 (.10) Net Realized and Unrealized Gains (Losses) on Securities ...................................... 2.30 (3.05) .93 (2.84) (.23) 3.64 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 2.26 (3.12) .83 (2.93) (.21) 3.54 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ...................... -- -- -- -- (.11) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 2.26 (3.12) .83 (2.93) (.32) 3.54 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $10.26 $8.00 $11.12 $10.29 $13.22 $13.54 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 28.25% (28.06)% 8.07% (22.16)% (1.51)% 35.40% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.33%** 1.38% 1.44% 1.51% 1.44% 1.42%** Net Expenses ...................................... 1.33%** 1.38% 1.44% 1.50% 1.44% 1.42%** Net Investment Income (Loss) ...................... (0.80)%** (0.82)% (0.92)% (0.78)% 0.16% (0.81)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,225% 3,788% 2,030% 3,062% 2,537% 3,243% Net Assets, End of Period (000's omitted) ......... $7,156 $2,964 $21,667 $33,228 $81,097 $45,219 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1,1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 80 & 81 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- ---------------------------------------------- TECHNOLOGY FUND TECHNOLOGY FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $7.11 $11.00 $12.70 $31.59 $17.02 $10.00 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ .............................. (.05) (.09) (.15) (.24) (.19) (.16) Net Realized and Unrealized Gains (Losses) on Securities ...................................... 3.03 (3.80) (1.55) (18.65) 14.76 7.18 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 2.98 (3.89) (1.70) (18.89) 14.57 7.02 DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 2.98 (3.89) (1.70) (18.89) 14.57 7.02 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $10.09 $7.11 $11.00 $12.70 $31.59 $17.02 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 41.91% (35.36)% (13.39)% (59.80)% 85.61% 70.20% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.33%** 1.38% 1.44% 1.30% 1.41% 1.39%** Net Expenses ...................................... 1.33%** 1.38% 1.44% 1.30% 1.40% 1.39%** Net Investment Loss ............................... (1.09)%** (1.13)% (1.21)% (1.01)% (0.85)% (1.23)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,062% 1,938% 1,017% 2,202% 4,929% 4,598% Net Assets, End of Period (000's omitted) ......... $18,166 $8,348 $35,815 $26,660 $90,002 $24,400 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 14, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 82 & 83 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- ---------------------------------------------- TELECOMMUNICATIONS FUND TELECOMMUNICATIONS FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $10.05 $15.12 $24.03 $61.17 $39.09 $30.00 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ .................... .05 .06 (.12) (.30) (.30) (.12) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 2.67 (5.13) (8.70) (36.84) 22.41 9.21 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 2.72 (5.07) (8.82) (37.14) 22.11 9.09 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ..................... -- -- (.09) -- (.03) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 2.72 (5.07) (8.91) (37.14) 22.08 9.09 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $12.77 $10.05 $15.12 $24.03 $61.17 $39.09 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 27.06% (33.53)% (36.84)% (60.72)% 56.54% 30.30% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.33%** 1.38% 1.51% 1.37% 1.50% 1.56%** Net Expenses ..................................... 1.33%** 1.38% 1.51% 1.37% 1.49% 1.55%** Net Investment Income (Loss) ..................... 0.77%** 0.46% (0.60)% (0.65)% (0.59)% (0.34)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,142% 2,431% 1,192% 1,273% 1,555% 2,788% Net Assets, End of Period (000's omitted) ........ $7,133 $9,152 $4,530 $9,924 $66,904 $12,300 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 84 & 85 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- ---------------------------------------------- TRANSPORTATION FUND TRANSPORTATION FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $15.03 $20.85 $19.26 $18.72 $23.97 $30.00 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ .............................. (.02) (.12) (.09) -- (.21) (.09) Net Realized and Unrealized Gains (Losses) on Securities ...................................... 3.09 (5.70) 1.68 .54 (5.04) (5.94) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 3.07 (5.82) 1.59 .54 (5.25) (6.03) DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 3.07 (5.82) 1.59 .54 (5.25) (6.03) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $18.10 $15.03 $20.85 $19.26 $18.72 $23.97 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 20.43% (27.91)% 8.26% 2.88% (21.90)% (20.10)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.33%** 1.40% 1.56% 1.55% 1.97% 1.58%** Net Expenses ...................................... 1.33%** 1.40% 1.56% 1.54% 1.96% 1.58%** Net Investment Loss ............................... (0.18)%** (0.70)% (0.51)% (0.05)% (0.92)% (0.36%)** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,091% 2,786% 1,704% 1,293% 1,970% 7,583% Net Assets, End of Period (000's omitted) ......... $4,306 $960 $18,215 $8,246 $18,501 $3,014 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED.
See Notes to Financial Statements. 86 & 87 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------
INVESTOR CLASS INVESTOR CLASS -------------------------- -------------------- UTILITIES FUND UTILITIES FUND -------------------------- --------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001*++ ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $16.38 $25.44 $35.52 $30.00 ------------- --------- --------- --------- Net Investment Income+ ............................ .24 .60 .60 .54 Net Realized and Unrealized Gains (Losses) on Securities ...................................... 3.09 (9.12) (9.12) 4.98 ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 3.33 (8.52) (8.52) 5.52 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ........................... -- (.54) (1.56) -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 3.33 (9.06) (10.08) 5.52 ------------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $19.71 $16.38 $25.44 $35.52 ------------- --------- --------- --------- ------------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 20.33% (33.55)% (24.07)% 18.40% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.32%** 1.39% 1.54% 1.59%** Net Expenses ...................................... 1.32%** 1.39% 1.54% 1.59%** Net Investment Income ............................. 2.58%** 3.24% 2.00% 1.65%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 714% 3,158% 2,418% 1,591% Net Assets, End of Period (000's omitted) ......... $23,796 $9,978 $26,539 $15,566 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 3, 2000. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 88 & 89 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- BANKING FUND BANKING FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.06 $8.41 $8.13 $7.24 $8.74 $10.00 ------------- --------- --------- --------- --------- --------- Net Investment Income+ ........................... .05 .07 .08 .13 .01 .03 Net Realized and Unrealized Gains (Losses) on Securities ..................................... 1.37 (1.21) .49 .76 (1.51) (1.29) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 1.42 (1.14) .57 .89 (1.50) (1.26) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.21) (.29) -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 1.42 (1.35) .28 .89 (1.50) (1.26) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $8.48 $7.06 $8.41 $8.13 $7.24 $8.74 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 20.11% (13.73)% 7.44% 12.29% (17.16)% (12.60)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.81%** 1.89% 1.91% 1.73% 2.06% 2.08%** Net Expenses ..................................... 1.81%** 1.89% 1.91% 1.73% 2.05% 2.08%** Net Investment Income ............................ 1.18%** 0.91% 0.95% 1.68% 0.07% 0.28%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,133% 1,495% 1,292% 1,394% 3,829% 11,211% Net Assets, End of Period (000's omitted) ........ $717 $390 $23,281 $20,378 $17,872 $2 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 90 & 91 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- BASIC MATERIALS FUND BASIC MATERIALS FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $16.89 $23.91 $20.79 $23.79 $23.16 $31.68 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ .................... .06 (.06) .15 .15 (.03) .39 Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.50 (6.93) 3.24 (3.15) .66 (8.91) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.56 (6.99) 3.39 (3.00) .63 (8.52) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.03) (.27) -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.56 (7.02) 3.12 (3.00) .63 (8.52) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $20.45 $16.89 $23.91 $20.79 $23.79 $23.16 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 21.08% (29.24)% 16.36% (12.61)% 2.72% (26.89)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.84%** 1.89% 2.00% 2.08% 2.01% 1.96%** Net Expenses ..................................... 1.84%** 1.89% 2.00% 2.07% 2.00% 1.95%** Net Investment Income (Loss) ..................... 0.55%** (0.23)% 0.65% 0.71% (0.10)% 1.25%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,048% 1,943% 1,523% 2,600% 3,641% 5,704% Net Assets, End of Period (000's omitted) ........ $785 $2,419 $30,839 $238 $5,082 $688 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 14, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 92 & 93 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- BIOTECHNOLOGY FUND BIOTECHNOLOGY FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $13.35 $20.36 $21.25 $28.46 $12.66 $10.00 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ .................... (.15) (.25) (.40) (.49) (.44) .18 Net Realized and Unrealized Gains (Losses) on Securities ..................................... 4.97 (6.76) (.49) (6.72) 16.28 2.48 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 4.82 (7.01) (.89) (7.21) 15.84 2.66 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ...................... -- -- -- -- (.04) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 4.82 (7.01) (.89) (7.21) 15.80 2.66 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $18.17 $13.35 $20.36 $21.25 $28.46 $12.66 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 36.10% (34.43)% (4.19)% (25.33)% 125.34% 26.60% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.82%** 1.88% 1.72% 1.74% 1.93% 2.16%** Net Expenses ..................................... 1.82%** 1.88% 1.72% 1.73% 1.92% 2.16%** Net Investment Income (Loss) ..................... (1.76)%** (1.82)% (1.69)% (1.68)% (1.96)% 1.79%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 311% 477% 390% 305% 699% 2,670% Net Assets, End of Period (000's omitted) ........ $22,058 $24,280 $20,931 $25,739 $45,757 $1,838 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 94 & 95 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- CONSUMER PRODUCTS FUND CONSUMER PRODUCTS FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............ $20.46 $24.69 $21.24 $22.50 $29.10 $26.19 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ................... (.02) (.03) .03 -- (.24) (.24) Net Realized and Unrealized Gains (Losses) on Securities .................................... 3.80 (4.08) 3.48 (1.26) (5.31) 3.15 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ..................... 3.78 (4.11) 3.51 (1.26) (5.55) 2.91 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ......................... -- (.12) (.06) -- -- -- Net Realized Capital Gain ..................... -- -- -- -- (1.05) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...... 3.78 (4.23) 3.45 (1.26) (6.60) 2.91 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................. $24.24 $20.46 $24.69 $21.24 $22.50 $29.10 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ......................... 18.48% (16.64)% 16.52% (5.60)% (19.76)% 11.11% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................. 1.83%** 1.89% 2.02% 1.85% 2.13% 2.05%** Net Expenses .................................... 1.83%** 1.89% 2.02% 1.84% 2.13% 2.04%** Net Investment Income (Loss) .................... (0.13)%** (0.09)% 0.18% 0.02% (1.01)% (1.38)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ...................... 464% 1,205% 890% 1,907% 5,466% 1,255% Net Assets, End of Period (000's omitted) ....... $17,005 $3,120 $33,201 $18,104 $3,135 $20,952 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 17, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 96 & 97 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- ELECTRONICS FUND ELECTRONICS FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.87 $16.62 $16.28 $39.66 $13.96 $9.98 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................. (.09) (.16) (.26) (.58) (.35) (.23) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 3.83 (8.59) .60 (22.62) 26.05 4.21 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 3.74 (8.75) .34 (23.20) 25.70 3.98 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ...................... -- -- -- (.18) -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 3.74 (8.75) .34 (23.38) 25.70 3.98 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $11.61 $7.87 $16.62 $16.28 $39.66 $13.96 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 47.52% (52.65)% 2.09% (58.68)% 184.10% 39.88% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.83%** 1.87% 1.75% 1.87% 1.76% 2.05%** Net Expenses ..................................... 1.83%** 1.87% 1.75% 1.86% 1.75% 2.04%** Net Investment Loss .............................. (1.69)%** (1.72)% (1.50)% (1.74)% (1.51)% (1.86)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 857% 2,413% 1,279% 705% 1,162% 3,011% Net Assets, End of Period (000's omitted) ........ $8,606 $7,389 $9,528 $7,325 $25,034 $4,024 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 98 & 99 FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- ENERGY FUND ENERGY FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $8.63 $11.09 $11.33 $10.84 $9.01 $10.07 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ ..................... .02 -- .05 (.03) .15 (.14) Net Realized and Unrealized Gains (Losses) on Securities ...................................... .84 (2.45) (.19) .52 1.68 (.92) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... .86 (2.45) (.14) .49 1.83 (1.06) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ........................... -- (.01) (.10) -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ .86 (2.46) (.24) .49 1.83 (1.06) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $9.49 $8.63 $11.09 $11.33 $10.84 $9.01 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 9.97% (22.13)% (1.14)% 4.52% 20.31% (10.53)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.85%** 1.88% 1.80% 2.11% 2.06% 1.99%** Net Expenses ...................................... 1.85%** 1.88% 1.80% 2.11% 2.05% 1.98%** Net Investment Income (Loss) ...................... 0.38%** (0.03)% 0.42% (0.26)% 1.45% (1.75)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 929% 1,362% 1,502% 1,707% 2,854% 6,070% Net Assets, End of Period (000's omitted) ......... $1,366 $7,039 $9,621 $4,269 $4,432 $609 * SINCE THE COMMENCEMENT OF OPERATIONS: MAY 5, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 100 & 101 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- ENERGY SERVICES FUND ENERGY SERVICES FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $17.01 $22.08 $26.97 $27.69 $18.03 $29.58 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ .............................. (.11) (.24) (.27) (.33) (.33) (.27) Net Realized and Unrealized Gains (Losses) on Securities ...................................... .43 (4.83) (4.62) (.39) 9.99 (11.28) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... .32 (5.07) (4.89) (.72) 9.66 (11.55) DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ .32 (5.07) (4.89) (.72) 9.66 (11.55) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $17.33 $17.01 $22.08 $26.97 $27.69 $18.03 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 1.88% (22.96)% (18.13)% (2.60)% 53.58% (39.05)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.83%** 1.88% 1.97% 1.74% 2.20% 2.05%** Net Expenses ...................................... 1.83%** 1.88% 1.97% 1.73% 2.20% 2.04%** Net Investment Loss ............................... (1.18)%** (1.26)% (1.21)% (1.17)% (1.49)% (1.66)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,191% 971% 949% 944% 1,794% 3,170% Net Assets, End of Period (000's omitted) ......... $1,135 $1,961 $22,051 $2,879 $34,524 $22,323 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 102 & 103 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS ------------------------- ---------------------------------------------- FINANCIAL SERVICES FUND FINANCIAL SERVICES FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.57 $10.08 $9.89 $9.42 $9.95 $10.47 ------------- --------- --------- --------- --------- --------- Net Investment Income (Loss)+ .................... .02 .03 (.01) .01 (.05) (.05) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 1.67 (2.52) .30 .46 (.47) (.47) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 1.69 (2.49) .29 .47 (.52) (.52) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income .......................... -- (.02) (.10) -- -- -- Net Realized Capital Gain ...................... -- -- -- -- (.01) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 1.69 (2.51) .19 .47 (.53) (.52) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $9.26 $7.57 $10.08 $9.89 $9.42 $9.95 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 22.32% (24.74)% 3.02% 4.99% (5.19)% (4.97)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.82%** 1.88% 2.02% 1.74% 2.29% 2.13%** Net Expenses ..................................... 1.82%** 1.88% 2.02% 1.73% 2.28% 2.12%** Net Investment Income (Loss) ..................... 0.46%** 0.35% (0.08)% 0.05% (0.64)% (0.60)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 845% 2,336% 1,110% 1,271% 2,770% 7,269% Net Assets, End of Period (000's omitted) ........ $19,236 $15,074 $40,968 $30,627 $129,760 $21,387 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 104 & 105 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- HEALTH CARE FUND HEALTH CARE FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $8.97 $11.11 $11.06 $10.12 $11.37 $9.93 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................. (.05) (.06) (.09) (.11) (.15) (.18) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 1.95 (2.08) .14 1.05 (1.09) 1.62 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 1.90 (2.14) .05 .94 (1.24) 1.44 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ..................... -- -- -- -- (.01) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 1.90 (2.14) .05 .94 (1.25) 1.44 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $10.87 $8.97 $11.11 $11.06 $10.12 $11.37 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 21.18% (19.26)% 0.45% 9.29% (10.95)% 14.50% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.83%** 1.88% 1.85% 2.05% 2.16% 2.24%** Net Expenses ..................................... 1.83%** 1.88% 1.85% 2.04% 2.15% 2.23%** Net Investment Loss .............................. (1.06)%** (0.66)% (0.81)% (0.98)% (1.51)% (1.96)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 690% 1,395% 936% 1,399% 4,850% 4,465% Net Assets, End of Period (000's omitted) ........ $17,174 $23,127 $29,504 $24,444 $1,741 $24 * SINCE THE COMMENCEMENT OF OPERATIONS: MAY 11, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 106 & 107 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------- INTERNET FUND INTERNET FUND -------------------------- ---------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001*++ ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $20.05 $30.18 $41.60 $200.00 ------------- --------- --------- --------- Net Investment Loss+ ............................. (.25) (.40) (.64) (2.80) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 8.09 (9.73) (10.78) (155.60) ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 7.84 (10.13) (11.42) (158.40) DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 7.84 (10.13) (11.42) (158.40) ------------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $27.89 $20.05 $30.18 $41.60 ------------- --------- --------- --------- ------------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 39.10% (33.57)% (27.45)% (79.20)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.82%** 1.82% 1.74% 2.09%** Net Expenses ..................................... 1.82%** 1.82% 1.74% 2.08%** Net Investment Loss .............................. (1.78)%** (1.79)% (1.68)% (2.00)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,013% 2,052% 2,186% 1,937% Net Assets, End of Period (000's omitted) ........ $4,574 $717 $396 $201 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 2000. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR PERIOD ENDED MARCH 31, 2001 HAVE BEEN RESTATED TO REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001. +++ UNAUDITED.
See Notes to Financial Statements. 108 & 109 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- LEISURE FUND LEISURE FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............ $17.37 $23.34 $24.93 $32.82 $33.48 $28.05 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................ (.11) (.39) (.51) (.51) (.42) (.36) Net Realized and Unrealized Gains (Losses) on Securities .................................... 4.26 (5.58) (1.08) (7.38) .06 5.79 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ..................... 4.15 (5.97) (1.59) (7.89) (.36) 5.43 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains .................... -- -- -- -- (.30) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...... 4.15 (5.97) (1.59) (7.89) (.66) 5.43 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................. $21.52 $17.37 $23.34 $24.93 $32.82 $33.48 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ......................... 23.89% (25.58)% (6.38)% (24.04)% (1.06)% 19.36% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................. 1.83%** 1.90% 2.26% 2.08% 2.08% 2.23%** Net Expenses .................................... 1.83%** 1.90% 2.26% 2.07% 2.08% 2.22%** Net Investment Loss ............................. (1.08)%** (1.68)% (2.05)% (1.77)% (1.32)% (1.95)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ...................... 2,351% 3,179% 2,609% 2,756% 5,734% 5,581% Net Assets, End of Period (000's omitted) ....... $484 $3,592 $9,324 $18,299 $18,559 $8 * SINCE THE COMMENCEMENT OF OPERATIONS: JUNE 3, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 110 FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- ADVISOR CLASS ----------------------- PRECIOUS METALS FUND ----------------------- PERIOD ENDED SEPTEMBER 30, 2003*++ ------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $31.68 ------------- Net Investment Income+ ............................ .03 Net Realized and Unrealized Gains on Securities ... 3.62 ------------- Net Increase in Net Asset Value Resulting from Operations ...................................... 3.65 DISTRIBUTION TO SHAREHOLDERS ...................... -- ------------- Net Increase in Net Asset Value ................... 3.65 ------------- NET ASSET VALUE--END OF PERIOD .................... $35.33 ------------- ------------- TOTAL INVESTMENT RETURN ........................... 11.52% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.74%** Net Expenses ...................................... 1.74%** Net Investment Income ............................. 0.43%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 309% Net Assets, End of Period (000's omitted) ......... $4,811 * SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003 ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED. See Notes to Financial Statements. SEMI-ANNUAL REPORT 111 -------------------------------------------------------------------------------- This page intentionally left blank. 112 & 113 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- RETAILING FUND RETAILING FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $7.85 $10.94 $10.17 $13.18 $13.50 $10.01 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................. (.06) (.12) (.15) (.16) (.33) (.15) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 2.25 (2.97) .92 (2.85) .12 3.64 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 2.19 (3.09) .77 (3.01) (.21) 3.49 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains ..................... -- -- -- -- (.11) -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 2.19 (3.09) .77 (3.01) (.32) 3.49 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $10.04 $7.85 $10.94 $10.17 $13.18 $13.50 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 27.90% (28.24)% 7.57% (22.84)% (1.52)% 34.87% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.83%** 1.88% 1.95% 2.10% 2.10% 1.95%** Net Expenses ..................................... 1.83%** 1.88% 1.95% 2.09% 2.09% 1.94%** Net Investment Loss .............................. (1.26)%** (1.35)% (1.40)% (1.49)% (2.69)% (1.37)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,225% 3,788% 2,030% 3,062% 2,537% 3,243% Net Assets, End of Period (000's omitted) ........ $9,979 $14,965 $37,690 $11,286 $91,740 $337 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 21, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 114 & 115 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------------------------------- TECHNOLOGY FUND TECHNOLOGY FUND -------------------------- ---------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003++ 2003 2002 2001 2000 1999* ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $6.97 $10.77 $12.49 $31.20 $16.90 $10.84 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................. (.07) (.12) (.20) (.31) (.37) (.20) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 2.97 (3.68) (1.52) (18.40) 14.67 6.26 ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 2.90 (3.80) (1.72) (18.71) 14.30 6.06 DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 2.90 (3.80) (1.72) (18.71) 14.30 6.06 ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $9.87 $6.97 $10.77 $12.49 $31.20 $16.90 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 41.61% (35.28)% (13.77)% (59.97)% 84.62% 55.90% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.83%** 1.88% 1.93% 1.81% 1.89% 2.18%** Net Expenses ..................................... 1.83%** 1.88% 1.93% 1.81% 1.89% 2.17%** Net Investment Loss .............................. (1.60)%** (1.62)% (1.69)% (1.48)% (1.60)% (1.78)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,062% 1,938% 1,017% 2,202% 4,929% 4,598% Net Assets, End of Period (000's omitted) ........ $24,385 $16,717 $25,769 $20,450 $32,537 $2,269 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 29, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 116 & 117 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS --------------------------- ----------------------------------------------- TELECOMMUNICATIONS FUND TELECOMMUNICATIONS FUND --------------------------- ----------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ -------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............ $9.81 $14.76 $23.58 $60.39 $38.73 $30.00 -------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................ (.02) (.09) (.06) (.54) (.57) (.09) Net Realized and Unrealized Gains (Losses) on Securities .................................... 2.67 (4.86) (8.67) (36.27) 22.26 8.82 -------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ..................... 2.65 (4.95) (8.73) (36.81) 21.69 8.73 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gains .................... -- -- (.09) -- (.03) -- -------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ...... 2.65 (4.95) (8.82) (36.81) 21.66 8.73 -------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................. $12.46 $9.81 $14.76 $23.58 $60.39 $38.73 -------------- --------- --------- --------- --------- --------- -------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN ......................... 27.01% (33.54)% (37.16)% (60.95)% 55.98% 29.10% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................. 1.81%** 1.86% 1.87% 1.87% 2.05% 2.35%** Net Expenses .................................... 1.81%** 1.86% 1.87% 1.86% 2.05% 2.34%** Net Investment Loss ............................. (0.41)%** (0.68)% (0.29)% (1.24)% (1.14)% (0.27)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ...................... 1,142% 2,431% 1,192% 1,273% 1,555% 2,788% Net Assets, End of Period (000's omitted) ....... $809 $898 $931 $19,154 $3,449 $1,929 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 118 & 119 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS --------------------------- ----------------------------------------------- TRANSPORTATION FUND TRANSPORTATION FUND --------------------------- ----------------------------------------------- PERIOD YEAR YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001++ 2000++ 1999*++ ------------- --------- --------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............. $14.40 $19.98 $18.57 $18.48 $23.85 $27.78 ------------- --------- --------- --------- --------- --------- Net Investment Loss+ ............................. (.07) (.15) (.21) (.03) -- (.30) Net Realized and Unrealized Gains (Losses) on Securities ..................................... 2.96 (5.43) 1.62 .12 (5.37) (3.63) ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ...................... 2.89 (5.58) 1.41 .09 (5.37) (3.93) DISTRIBUTION TO SHAREHOLDERS ..................... -- -- -- -- -- -- ------------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ....... 2.89 (5.58) 1.41 .09 (5.37) (3.93) ------------- --------- --------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD ................... $17.29 $14.40 $19.98 $18.57 $18.48 $23.85 ------------- --------- --------- --------- --------- --------- ------------- --------- --------- --------- --------- --------- TOTAL INVESTMENT RETURN .......................... 20.07% (27.93)% 7.59% 0.49% (22.52)% (14.15)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ................................... 1.83%** 1.92% 2.23% 2.08% 1.34% 2.08%** Net Expenses ..................................... 1.83%** 1.92% 2.23% 2.08% 1.33% 2.07%** Net Investment Loss .............................. (0.83)%** (0.94)% (1.16)% (0.16)% (0.08)% (1.38)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ....................... 1,091% 2,786% 1,704% 1,293% 1,970% 7,583% Net Assets, End of Period (000's omitted) ........ $5,802 $3,561 $23,807 $233 $87,189 $4 * SINCE THE COMMENCEMENT OF OPERATIONS: JUNE 9,1998. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 1999 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 120 & 121 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
ADVISOR CLASS ADVISOR CLASS -------------------------- ---------------------- UTILITIES FUND UTILITIES FUND -------------------------- ---------------------- PERIOD YEAR YEAR PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001*++ ------------- --------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $16.11 $25.23 $35.43 $30.00 ------------- --------- --------- --------- Net Investment Income+ ............................ .18 .33 .36 .36 Net Realized and Unrealized Gains (Losses) on Securities ...................................... 3.04 (8.91) (9.00) 5.07 ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 3.22 (8.58) (8.64) 5.43 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ........................... -- (.54) (1.56) -- ------------- --------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 3.22 (9.12) (10.20) 5.43 ------------- --------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $19.33 $16.11 $25.23 $35.43 ------------- --------- --------- --------- ------------- --------- --------- --------- TOTAL INVESTMENT RETURN ........................... 19.99% (34.07)% (24.47)% 18.10% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 1.82%** 1.89% 1.85% 2.09%** Net Expenses ...................................... 1.82%** 1.89% 1.85% 2.08%** Net Investment Income ............................. 1.96%** 1.74% 1.15% 1.03%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 714% 3,158% 2,418% 1,591% Net Assets, End of Period (000's omitted) ......... $8,694 $2,239 $6,053 $14,360 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 3, 2000. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 122 & 123 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS ------------------------------------------------- ------------------------------------ BANKING FUND BANKING FUND BASIC MATERIALS FUND ------------------------------------------------ ------------------------------------ PERIOD YEAR YEAR PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003 2002 2001* 2003+++ 2003++ 2002*++ ------------- --------- --------- --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .... $7.12 $8.54 $8.27 $8.27 $16.86 $24.03 $23.13 ------------- --------- --------- --------- ------------- --------- --------- Net Investment Income (Loss)+ ........... .05 .02 .03 -- (.02) (.06) (.03) Net Realized and Unrealized Gains (Losses) on Securities ......................... 1.34 (1.23) .53 -- 3.53 (7.08) 1.20 ------------- --------- --------- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. 1.39 (1.21) .56 -- 3.51 (7.14) 1.17 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ................. -- (.21) (.29) -- -- (.03) (.27) ------------- --------- --------- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value 1.39 (1.42) .27 -- 3.51 (7.17) .90 ------------- --------- --------- --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $8.51 $7.12 $8.54 $8.27 $20.37 $16.86 $24.03 ------------- --------- --------- --------- ------------- --------- --------- ------------- --------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ................. 19.52% (14.35)% 7.19% 0.00% 20.82% (29.72)% 5.10% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 2.33%** 2.38% 2.40% 0.00%** 2.34%** 2.39% 2.60%** Net Expenses ............................ 2.33%** 2.38% 2.40% 0.00%** 2.34%** 2.39% 2.60%** Net Investment Income (Loss) ............ 1.23%** 0.23% 0.42% 0.00%** (0.21)%** (0.23)% (0.13)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** .............. 1,133% 1,495% 1,292% 1,394% 1,048% 1,943% 1,523% Net Assets, End of Period (000's omitted) $203 $76 $15 $14 $559 $294 $525 * SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001--BANKING FUND; MAY 3, 2001--BASIC MATERIALS FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 124 & 125 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- C CLASS ------------------------------------ BIOTECHNOLOGY FUND ------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003 2002 ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .... $13.47 $20.66 $21.66 ------------- --------- --------- Net Investment Loss+ .................... (.19) (.33) (.54) Net Realized and Unrealized Gains (Losses) on Securities ......................... 4.99 (6.86) (.46) ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. 4.80 (7.19) (1.00) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ................. -- -- -- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value 4.80 (7.19) (1.00) ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $18.27 $13.47 $20.66 ------------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ................. 35.63% (34.80)% (4.62)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 2.33%** 2.38% 2.38% Net Expenses ............................ 2.33%** 2.38% 2.38% Net Investment Loss ..................... (2.27)%** (2.30)% (2.36)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** .............. 311% 477% 390% Net Assets, End of Period (000's omitted) $2,090 $1,667 $967
C CLASS ------------------------------------------------------- BIOTECHNOLOGY FUND CONSUMER PRODUCTS FUND ------------------ ------------------------------------ PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2001* 2003+++ 2003++ 2002*++ --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .... $21.66 $20.52 $24.93 $21.81 --------- ------------- --------- --------- Net Investment Loss+ .................... -- (.09) (.09) (.03) Net Realized and Unrealized Gains (Losses) on Securities ......................... -- 3.81 (4.20) 3.21 --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. -- 3.72 (4.29) 3.18 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ................. -- -- (.12) (.06) --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value -- 3.72 (4.41) 3.12 --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $21.66 $24.24 $20.52 $24.93 --------- ------------- --------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ................. 0.00% 18.13% (17.20)% 14.57% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 0.00%** 2.33%** 2.39% 2.57%** Net Expenses ............................ 0.00%** 2.33%** 2.39% 2.57%** Net Investment Loss ..................... 0.00%** (0.75)%** (0.35)% (0.19)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** .............. 305% 464% 1,205% 890% Net Assets, End of Period (000's omitted) $3 $273 $196 $501 * SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001--BIOTECHNOLOGY FUND; JULY 24, 2001--CONSUMER PRODUCTS FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 126 & 127 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- C CLASS ------------------------ ELECTRONICS FUND ------------------------ PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003++ 2003 ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............... $7.91 $16.82 ------------- --------- Net Investment Loss+ ............................... (.12) (.22) Net Realized and Unrealized Gains (Losses) on Securities .................................... 3.85 (8.69) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........................ 3.73 (8.91) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ............................ -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ......... 3.73 (8.91) ------------- --------- NET ASSET VALUE--END OF PERIOD ..................... $11.64 $7.91 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN ............................ 47.16% (52.97)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ..................................... 2.33%** 2.39% Net Expenses ....................................... 2.33%** 2.39% Net Investment Loss ................................ (2.17)%** (2.21)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ......................... 857% 2,413% Net Assets, End of Period (000's omitted) .......... $1,075 $940
C CLASS ---------------------------------------------------------- ELECTRONICS FUND ENERGY FUND -------------------- ------------------------------------- YEAR PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2002 2001* 2003++ 2003 2002* --------- --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............... $16.54 $18.72 $8.63 $11.14 $11.87 --------- --------- ------------- --------- --------- Net Investment Loss+ ............................... (.37) (.01) -- (.07) (.09) Net Realized and Unrealized Gains (Losses) on Securities .................................... .65 (2.17) .83 (2.43) (.54) --------- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........................ .28 (2.18) .83 (2.50) (.63) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ............................ -- -- -- (.01) (.10) --------- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value ......... .28 (2.18) .83 (2.51) (.73) --------- --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD ..................... $16.82 $16.54 $9.46 $8.63 $11.14 --------- --------- ------------- --------- --------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ............................ 1.69% (11.65)% 9.62% (22.48)% (5.22)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ..................................... 2.49% 2.11%** 2.32%** 2.38% 2.51%** Net Expenses ....................................... 2.49% 1.82%** 2.32%** 2.38% 2.51%** Net Investment Loss ................................ (2.27)% (1.76)%** 0.00%** (0.81)% (0.92)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ......................... 1,279% 705% 929% 1,362% 1,502% Net Assets, End of Period (000's omitted) .......... $388 $2 $1,360 $1,471 $392 * SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001--ELECTRONICS FUND; APRIL 19, 2001--ENERGY FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 128 & 129 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS --------------------------------------------------- ------------------------------------ ENERGY ENERGY SERVICES FUND SERVICES FUND FINANCIAL SERVICES FUND --------------------------------------------------- ------------------------------------ PERIOD YEAR YEAR PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003++ 2002++ 2001*++ 2003+++ 2003 2002* ------------- --------- --------- --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .... $17.04 $22.23 $27.30 $27.30 $7.57 $10.14 $10.46 ------------- --------- --------- --------- ------------- --------- --------- Net Investment Loss+ .................... (.16) (.30) (.30) -- -- (.02) (.05) Net Realized and Unrealized Gains (Losses) on Securities ......................... .45 (4.89) (4.77) -- 1.66 (2.53) (.17) ------------- --------- --------- --------- ------------- --------- --------- Net Incease (Decrease) in Net Asset Value Resulting from Operations ............. .29 (5.19) (5.07) -- 1.66 (2.55) (.22) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ................. -- -- -- -- -- (.02) (.10) ------------- --------- --------- --------- ------------- --------- --------- Net (Increase) Decrease in Net Asset Value .29 (5.19) (5.07) -- 1.66 (2.57) (.32) ------------- --------- --------- --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $17.33 $17.04 $22.23 $27.30 $9.23 $7.57 $10.14 ------------- --------- --------- --------- ------------- --------- --------- ------------- --------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ................. 1.70% (23.35)% (18.57)% 0.00% 21.93% (25.19)% (2.02)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 2.35%** 2.39% 2.57% 0.00%** 2.33%** 2.37% 2.52%** Net Expenses ............................ 2.35%** 2.39% 2.57% 0.00%** 2.33%** 2.37% 2.52%** Net Investment Loss ..................... (1.76)%** (1.60)% (1.60)% 0.00%** (0.05)%** (0.19)% (0.50)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** .............. 1,191% 971% 949% 944% 845% 2,336% 1,110% Net Assets, End of Period (000's omitted) $1,409 $651 $697 $3 $782 $222 $526 * SINCE THE COMMENCEMENT OF OPERATIONS:MARCH 30, 2001--ENERGY SERVICES FUND; APRIL 19, 2001--FINANCIAL SERVICES FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 130 & 131 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- C CLASS ----------------------------------- HEALTH CARE FUND ----------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, 2003++ 2003 2002 ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .... $9.03 $11.25 $11.25 ------------- --------- --------- Net Investment Loss+ .................... (.09) (.12) (.18) Net Realized and Unrealized Gains (Losses) on Securities ......................... 1.96 (2.10) .18 ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. 1.87 (2.22) -- DISTRIBUTION TO SHAREHOLDERS ............ -- -- -- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value 1.87 (2.22) -- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $10.90 $9.03 $11.25 ------------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ................. 20.71% (19.73)% 0.00% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 2.34%** 2.37% 2.54% Net Expenses ............................ 2.34%** 2.37% 2.54% Net Investment Loss ..................... (1.65)%** (1.30)% (1.59)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** .............. 690% 1,395% 936% Net Assets, End of Period (000's omitted) $1,340 $421 $1,085
C CLASS ----------------------------------------------------- HEALTH CARE FUND INTERNET FUND ---------------- ------------------------------------ PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2001* 2003++ 2003 2002* --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .... $11.25 $20.04 $30.28 $53.40 --------- ------------- --------- --------- Net Investment Loss+ .................... -- (.30) (.50) (.78) Net Realized and Unrealized Gains (Losses) on Securities ......................... -- 8.06 (9.74) (22.34) --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ............. -- 7.76 (10.24) (23.12) DISTRIBUTION TO SHAREHOLDERS ............ -- -- -- -- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value -- 7.76 (10.24) (23.12) --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .......... $11.25 $27.80 $20.04 $30.28 --------- ------------- --------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ................. 0.00% 38.72% (33.82)% (43.30)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .......................... 0.00%** 2.33%** 2.37% 2.36%** Net Expenses ............................ 0.00%** 2.33%** 2.37% 2.36%** Net Investment Loss ..................... 0.00%** (2.26)%** (2.34)% (2.33)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** .............. 1,399% 1,013% 2,052% 2,186% Net Assets, End of Period (000's omitted) $3 $444 $234 $149 * SINCE THE COMMENCEMENT OF OPERATIONS:MARCH 30, 2001--HEALTH CARE FUND; APRIL 19, 2001--INTERNET FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 132 & 133 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS --------------------------------------- ------------------------------------- LEISURE FUND LEISURE FUND PRECIOUS METALS FUND --------------------------------------- ------------------------------------- PERIOD YEAR PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003++ 2002*++ 2003+++ 2003 2002* ------------- --------- --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............... $17.61 $23.79 $29.01 $26.35 $27.72 $20.41 ------------- --------- --------- ------------- --------- --------- Net Investment Loss+ ............................... (.18) (.36) (.45) (.13) (.27) (.26) Net Realized and Unrealized Gains (Losses) on Securities .................................... 4.31 (5.82) (4.77) 8.39 (1.10) 7.71 ------------- --------- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........................ 4.13 (6.18) (5.22) 8.26 (1.37) 7.45 DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ............................ -- -- -- -- -- (.14) ------------- --------- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value ......... 4.13 (6.18) (5.22) 8.26 (1.37) 7.31 ------------- --------- --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD ..................... $21.74 $17.61 $23.79 $34.61 $26.35 $27.72 ------------- --------- --------- ------------- --------- --------- ------------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ............................ 23.45% (25.98)% (17.99)% 31.35% (4.94)% 36.75% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ..................................... 2.33%** 2.39% 2.53%** 2.24%** 2.27% 2.38%** Net Expenses ....................................... 2.33%** 2.39% 2.53%** 2.24%** 2.27% 2.38%** Net Investment Loss ................................ (1.75)%** (1.70)% (2.14)%** (0.83)%** (0.94)% (1.23)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ......................... 2,351% 3,179% 2,609% 309% 744% 839% Net Assets, End of Period (000's omitted) .......... $149 $36 $87 $8,008 $2,150 $910 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 27, 2001--PRECIOUS METALS FUND; MAY 3, 2001--LEISURE FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 134 & 135 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) --------------------------------------------------------------------------------
C CLASS C CLASS ---------------------------------------- ------------------------------------ RETAILING FUND RETAILING FUND TECHNOLOGY FUND ---------------------------------------- ------------------------------------ PERIOD YEAR PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31 SEPTEMBER 30, MARCH 31, MARCH 31, 2003++ 2003 2002* 2003++ 2003 2002* ------------- --------- -------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $7.81 $11.02 $10.68 $7.00 $10.90 $14.82 ------------- --------- -------- ------------- --------- --------- Net Investment Loss+ .............................. (.08) (.20) (.20) (.11) (.18) (.25) Net Realized and Unrealized Gains (Losses) on Securities ................................... 2.23 (3.01) .54 2.96 (3.72) (3.67) ------------- --------- -------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 2.15 (3.21) .34 2.85 (3.90) (3.92) DISTRIBUTION TO SHAREHOLDERS ...................... -- -- -- -- -- -- ------------- --------- -------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ 2.15 (3.21) .34 2.85 (3.90) (3.92) ------------- --------- -------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $9.96 $7.81 $11.02 $9.85 $7.00 $10.90 ------------- --------- -------- ------------- --------- --------- ------------- --------- -------- ------------- --------- --------- TOTAL INVESTMENT RETURN ........................... 27.53% (29.13)% 3.18% 40.71% (35.78)% (26.45)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 2.33%** 2.32% 2.70%** 2.34%** 2.37% 2.43%** Net Expenses ...................................... 2.33%** 2.32% 2.70%** 2.34%** 2.37% 2.43%** Net Investment Loss ............................... (1.71)%** (1.89)% (2.13)%** (2.11)%** (2.07)% (2.22)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,225% 3,788% 2,030% 1,062% 1,938% 1,017% Net Assets, End of Period (000's omitted) ......... $359 $85 $1,028 $1,144 $434 $424 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001--TECHNOLOGY FUND; MAY 9, 2001--RETAILING FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED.
See Notes to Financial Statements. 136 & 137 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- C CLASS -------------------------- TELECOMMUNICATIONS FUND -------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003+++ 2003++ ------------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $9.84 $14.97 ------------- --------- Net Investment Loss+ .............................. (.06) (.09) Net Realized and Unrealized Gains (Losses) on Securities ................................... 2.70 (5.04) ------------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... 2.64 (5.13) DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ....................... -- -- ------------- --------- Net Increase (Decrease) in Net Asset Value ........ 2.64 (5.13) ------------- --------- NET ASSET VALUE--END OF PERIOD .................... $12.48 $9.84 ------------- --------- ------------- --------- TOTAL INVESTMENT RETURN ........................... 26.83% (34.27)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 2.33%** 2.41% Net Expenses ...................................... 2.33%** 2.41% Net Investment Loss ............................... (0.95)%** (0.71)% SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,142% 2,431% Net Assets, End of Period (000's omitted) ......... $1,178 $774
C CLASS --------------------------------------------------------------- TELECOMMUNICATIONS FUND TRANSPORTATION FUND ----------------------- --------------------------------------- PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2002*++ 2003+++ 2003++ 2002*++ --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD .............. $26.91 $14.85 $20.73 $20.04 --------- ------------- --------- --------- Net Investment Loss+ .............................. (.24) (.13) (.27) (.24) Net Realized and Unrealized Gains (Losses) on Securities ................................... (11.61) 3.08 (5.61) .93 --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ....................... (11.85) 2.95 (5.88) .69 DISTRIBUTION TO SHAREHOLDERS FROM: Net Realized Capital Gain ....................... (.09) -- -- -- --------- ------------- --------- --------- Net Increase (Decrease) in Net Asset Value ........ (11.94) 2.95 (5.88) .69 --------- ------------- --------- --------- NET ASSET VALUE--END OF PERIOD .................... $14.97 $17.80 $14.85 $20.73 --------- ------------- --------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ........................... (44.16)% 19.87% (28.36)% 3.44% RATIOS TO AVERAGE NET ASSETS: Gross Expenses .................................... 2.43%** 2.33%** 2.36% 2.59%** Net Expenses ...................................... 2.43%** 2.33%** 2.36% 2.59%** Net Investment Loss ............................... (1.25)%** (1.49)%** (1.51)% (1.35)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ........................ 1,192% 1,091% 2,786% 1,704% Net Assets, End of Period (000's omitted) ......... $19 $220 $514 $654 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001--TELECOMMUNICATIONS FUND; MAY 14, 2001--TRANSPORTATION FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 138 & 139 SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONCLUDED) --------------------------------------------------------------------------------
C CLASS C CLASS ------------------------- --------------- UTILITIES FUND UTILITIES FUND ------------------------- --------------- PERIOD YEAR PERIOD ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, MARCH 31, 2003+++ 2003++ 2002*++ ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ............... $15.93 $25.08 $37.98 ------------- --------- --------- Net Investment Income (Loss)+ ...................... .15 .30 (.12) Net Realized and Unrealized Gains (Losses) on Securities .................................... 2.99 (8.91) (11.22) ------------- --------- --------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ........................ 3.14 (8.61) (11.34) DISTRIBUTION TO SHAREHOLDERS FROM: Net Investment Income ............................ -- (.54) (1.56) ------------- --------- --------- Net Increase (Decrease) in Net Asset Value ......... 3.14 (9.15) (12.90) ------------- --------- --------- NET ASSET VALUE--END OF PERIOD ..................... $19.07 $15.93 $25.08 ------------- --------- --------- ------------- --------- --------- TOTAL INVESTMENT RETURN ............................ 19.71% (34.40)% (29.95)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ..................................... 2.34%** 2.42% 2.76%** Net Expenses ....................................... 2.34%** 2.42% 2.76%** Net Investment Income (Loss) ....................... 1.63%** 1.56% (0.48)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ......................... 714% 3,158% 2,418% Net Assets, End of Period (000's omitted) .......... $8,528 $939 $192 * SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 27, 2001--UTILITIES FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003 +++ UNAUDITED.
See Notes to Financial Statements. 140 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Rydex Series Funds (the "Trust") are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as a nondiversified, open-ended investment company, and are authorized to issue an unlimited number of shares. The Trust offers five separate classes of shares, Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares, and Institutional Class Shares. Sales of shares of each Class are made without a sales charge at the net asset value per share. C Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12 months of purchase. At September 30, 2003, the Trust consisted of thirty-four separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen Sector Funds, and two Strategic Funds. This report covers the seventeen Sector Funds (the "Sector Funds"), while the Money Market and Benchmark Funds and the Strategic Funds are contained in separate reports. At September 30, 2003, none of the Sector Funds have issued H Class or Institutional Class Shares. The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America and are consistently followed by the Trust. A. Equity securities listed on an exchange (New York Stock Exchange or American Stock Exchange) are valued at the last quoted sales price as of close of business on the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the valuation date. Equity securities listed on the Nasdaq market system are valued at the Nasdaq Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation date. Listed options held by the Trust are valued at their last bid price. Over-the-counter options held by the Trust are valued using the average bid price obtained from one or more security dealers. The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the last quoted sales price as of 4:00 p.m. on the valuation date. Short-term securities, if any, are valued at amortized cost, which approximates market value. Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under direction of the Board of Trustees or by the Advisor using methods established or ratified by the Board of Trustees. B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. C. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees relating to Advisor SEMI-ANNUAL REPORT 141 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Class Shares and H Class Shares and service and distribution fees related to C Class Shares, are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis based upon the respective aggregate net assets value of each Fund included in the Trust. D. Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income and net realized capital gains are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for items such as deferral of wash sales and post-October losses and regulated futures contracts and options. E. Each Sector Fund seeks capital appreciation and invests substantially all of its assets in equity securities of companies involved in its sector. The Funds may also purchase American Depository Receipts ("ADRs") and U.S. Government securities, enter into repurchase agreements, and engage in futures, options and equity swap transactions. The risks inherent in the use of futures, options and swaps agreements include 1) adverse changes in the value of such instruments; 2) imperfect correlation between the price of the instruments and movements in the price of the underlying securities; 3) the possible absence of a liquid secondary market for any particular instrument at any time; and 4) the potential of counterparty default. F. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of an investment advisory contract, the Trust pays Rydex Global Advisors, (the "Advisor"), an affiliated entity, investment advisory fees calculated at an annualized rate of 0.85% of the average daily net assets of each of the Sector Funds, except the Precious Metals Fund, which is 0.75% of the average daily net assets. Certain officers and trustees of the Trust are also officers and directors of Rydex Global Advisors. Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides transfer agent services to the Trust for fees calculated at an annualized rate of 0.25% of the average daily net assets of each of the Sector Funds. The Servicer also provides accounting services to the Trust calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each of the Sector Funds. 142 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Certain officers and trustees of the Trust are also officers and directors of Rydex Fund Services, Inc. The Trust has adopted a Distribution Plan and Shareholder Services Plan applicable to its Advisor Class Shares and a Distribution Plan applicable to the H Class Shares, for which Rydex Distributors, Inc. (the "Distributor"), an affiliated entity, and other firms that provide distribution and/or shareholder services ("Service Providers") may receive compensation. If a Service Provider provides distribution services, the Trust will pay fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its fees. The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services. If a Service Provider provides shareholder services, the Distributor will receive fees from the Trust at an annual rate not to exceed 0.25% of average daily net assets. The Distributor, in turn, will pay the Service Provider out of its fees. The Trust has adopted a separate Distribution and Shareholder Services Plan (the "C Class Plan") applicable to its C Class Shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds' C Class Shares average daily net assets. The annual 0.25% service fee compensates your financial advisor for providing on-going services to you. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record. The annual 0.75% distribution fee reimburses the Distributor for paying your financial advisor an on-going sales commission. The Distributor advances the first year's service and distribution fees. Certain officers and trustees of the Trust are also officers and directors of Rydex Distributors, Inc. 3. FEDERAL INCOME TAX INFORMATION The Trust intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income to its shareholders. Therefore, no Federal income tax provision is required. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for futures and options transactions, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations. Permanent book and tax basis differences, if any, relating to shareholder distributions will result in reclassifications to paid-in capital. This includes the utilization of earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes, net operating losses not utilized during the current year, and differences in the treatment of certain notional principal contracts (e.g. financial futures contracts). These reclassifications have no effect on net assets or net asset values per share. Any taxable gain remaining at fiscal year end is distributed in the following year. SEMI-ANNUAL REPORT 143 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS At September 30, 2003, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows: TAX TAX NET TAX UNREALIZED UNREALIZED UNREALIZED FUND COST GAIN LOSS GAIN (LOSS) ------ ----------- ----------- ---------- ----------- Banking Fund ........... $ 6,305,570 $ 2,846,302 $ -- $ 2,846,302 Basic Materials Fund ... 5,671,053 1,624,936 (7,478) 1,617,458 Biotechnology Fund ..... 113,940,573 64,931,218 (812,908) 64,118,310 Consumer Products Fund . 17,349,578 1,983,505 (32,575) 1,950,930 Electronics Fund ....... 27,923,688 20,252,725 (276,125) 19,976,600 Energy Fund ............ 13,577,994 3,231,679 -- 3,231,679 Energy Services Fund ... 13,409,849 4,943,935 (30,545) 4,913,390 Financial Services Fund 23,172,551 8,351,243 (28,696) 8,322,547 Health Care Fund ....... 21,551,586 7,600,212 (136,328) 7,463,884 Internet Fund .......... 12,902,957 1,876,806 (92,955) 1,783,851 Leisure Fund ........... 3,110,753 1,577,565 (10,227) 1,567,338 Precious Metals Fund ... 130,314,432 43,156,916 (119,710) 43,037,206 Retailing Fund ......... 11,380,974 6,506,521 (27,969) 6,478,552 Technology Fund ........ 37,482,233 6,725,286 (571,655) 6,153,631 Telecommunications Fund 6,056,503 3,017,443 (31,552) 2,985,891 Transportation Fund .... 8,435,601 1,772,264 (481) 1,771,783 Utilities Fund ......... 36,510,166 4,914,773 (9,357) 4,905,416 4. REPURCHASE AGREEMENTS The Trust transfers univested cash balances into a single joint account, along with uninvested cash of the Rydex Dynamic Funds, a separate Trust, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U. S. Treasury or U.S. Government Agencies. The collateral is in the possession of the Trusts' custodians and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreements at maturity. The repurchase agreements that were executed by the joint account and outstanding as of September 30, 2003 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE ------------ ------------------ ---------- ------------ -------------- Salomon Smith Barney, Inc. 0.90% due 10/1/03 $240,000,000 $240,000,000 $240,005,918 U.S. Bank NA ............. 0.96% due 10/1/03 170,000,000 170,000,000 170,004,471 Paine Webber, Inc. ....... 0.93% due 10/1/03 170,000,000 170,000,000 170,004,332 Morgan Stanley, Inc. ..... 0.91% due 10/1/03 170,000,000 170,000,000 170,004,238 Lehman Brothers, Inc. .... 0.94% due 10/1/03 12,101,668 12,101,668 12,101,980 ------------ ------------ $762,101,668 $762,120,939 ------------ ------------ ------------ ------------
144 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- As of September 30, 2003, the collateral for the repurchase agreements in the joint account was as follows: SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE ------------- -------------- --------- ------------ U. S. Treasury Bonds ........... 3.875% - 5.375% $268,291,421 $312,444,509 U. S. Treasury Notes ........... 0.000% - 7.000% 257,405,610 293,257,361 Ginnie Mae ..................... 4.500% - 5.000% 174,032,279 173,848,577 ------------ $779,550,447 ------------ ------------ In the event of counterparty default, the Trust has the right to collect the collateral to offset losses incurred. There is potential loss to the Trust in the event the Trust is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Trust seeks to assert its rights. The Trust's investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the credit worthiness of those banks and dealers with which the Trust enters into repurchase agreements to evaluate potential risks. 5. SECURITIES TRANSACTIONS During the period ended September 30, 2003, purchases and sales of investment securities, excluding short-term and temporary cash investments, were: BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS FUND FUND FUND FUND FUND ----------- ------------ ------------ ----------- ------------ Purchases .... $138,217,912 $108,877,220 $527,103,504 $72,725,635 $494,518,258 Sales ........ $139,154,325 $109,200,315 $524,893,486 $60,609,819 $504,502,002 ENERGY FINANCIAL HEALTH ENERGY SERVICES SERVICES CARE INTERNET FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ Purchases .... $141,312,740 $241,114,852 $317,729,135 $243,245,805 $148,220,997 Sale ......... $138,384,739 $234,431,694 $315,153,036 $256,842,582 $139,231,353 TELE- PRECIOUS COMMUN- LEISURE METALS RETAILING TECHNOLOGY ICATIONS FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ Purchases .... $180,961,859 $477,333,435 $363,069,604 $472,292,040 $145,536,538 Sales ........ $183,188,015 $408,344,024 $368,612,880 $466,861,107 $149,438,017 TRANS- PORTATION UTILITIES FUND FUND ----------- ------------ Purchases .... $98,642,556 $194,684,273 Sales ........ $94,527,377 $170,596,106 SEMI-ANNUAL REPORT 145 -------------------------------------------------------------------------------- This page intentionally left blank. 146 & 147 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 6. SHARE TRANSACTIONS The Trust is authorized to distribute an unlimited number of shares. Transactions in shares for the period ended September 30, 2003 were: INVESTOR CLASS:
BASIC BIO- CONSUMER ENERGY BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES FUND FUND FUND FUND FUND FUND FUND ----------- ---------- ----------- ---------- ----------- ----------- ----------- Shares Purchased .................... 15,806,322 6,641,530 33,167,841 2,288,289 55,554,676 14,699,985 17,148,594 Purchased through Dividend Reinvestment -- -- -- -- -- -- -- ----------- ---------- ----------- ---------- ----------- ----------- ----------- Total Purchased ..................... 15,806,322 6,641,530 33,167,841 2,288,289 55,554,676 14,699,985 17,148,594 Shares Redeemed ..................... (15,869,569) (6,947,273) (32,912,467) (2,441,153) (56,312,781) (13,753,610) (18,844,878) ----------- ---------- ----------- ---------- ----------- ----------- ----------- Net Shares Purchased (Redeemed) ..... (63,247) (305,743) 255,374 (152,864) (758,105) 946,375 (1,696,284) ----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------- ---------- ----------- ---------- ----------- ----------- ----------- FINANCIAL HEALTH SERVICES CARE FUND FUND ----------- ----------- Shares Purchased .................... 41,026,171 21,753,850 Purchased through Dividend Reinvestment -- -- ----------- ----------- Total Purchased ..................... 41,026,171 21,753,850 Shares Redeemed ..................... (40,650,300)(22,248,446) ----------- ----------- Net Shares Purchased (Redeemed) ..... 375,871 (494,596) ----------- ----------- ----------- -----------
TELE- PRECIOUS COMMU- TRANS- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS PORTATION FUND FUND FUND FUND FUND FUND FUND ---------- ---------- ----------- ----------- ----------- ---------- ---------- Shares Purchased .................... 5,601,146 14,837,140 29,575,883 47,307,446 33,077,629 15,675,212 8,550,086 Purchased through Dividend Reinvestment -- -- -- -- -- -- -- ---------- ---------- ----------- ----------- ----------- ---------- ---------- Total Purchased ..................... 5,601,146 14,837,140 29,575,883 47,307,446 33,077,629 15,675,212 8,550,086 Shares Redeemed ..................... (5,416,563) (15,043,709) (27,801,492) (46,980,328) (32,450,681) (17,851,542) (8,503,766) ---------- ---------- ----------- ----------- ----------- ---------- ---------- Net Shares Purchased (Redeemed) ..... 184,583 (206,569) 1,774,391 327,118 626,948 (2,176,330) 46,320 ---------- ---------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- ----------- ---------- ---------- UTILITIES FUND ----------- Shares Purchased .................... 12,688,061 Purchased through Dividend Reinvestment -- ----------- Total Purchased ..................... 12,688,061 Shares Redeemed ..................... (13,307,793) ----------- Net Shares Redeemed ................. (619,732) ----------- -----------
ADVISOR CLASS:
BASIC BIO- CONSUMER ENERGY BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES FUND FUND FUND FUND FUND FUND FUND ---------- ---------- ---------- --------- ----------- ---------- ---------- Shares Purchased .................... 3,724,699 1,466,664 3,922,246 2,140,394 7,478,004 2,814,774 1,266,120 Purchased through Dividend Reinvestment -- -- -- -- -- -- -- ---------- ---------- ---------- --------- ----------- ---------- ---------- Total Purchased ..................... 3,724,699 1,466,664 3,922,246 2,140,394 7,478,004 2,814,774 1,266,120 Shares Redeemed ..................... (3,695,384) (1,857,679) (4,526,509) (1,896,747) (7,675,183) (3,486,514) (1,546,742) ---------- ---------- ---------- --------- ----------- ---------- ---------- Net Shares Purchased (Redeemed) ..... 29,315 (391,015) (604,263) 243,647 (197,179) (671,740) (280,622) ---------- ---------- ---------- --------- ----------- ---------- ---------- ---------- ---------- ---------- --------- ----------- ---------- ---------- FINANCIAL HEALTH SERVICES CARE FUND FUND ---------- ---------- Shares Purchased .................... 4,056,396 5,424,247 Purchased through Dividend Reinvestment -- -- ---------- ---------- Total Purchased ..................... 4,056,396 5,424,247 Shares Redeemed ..................... (3,971,965) (6,422,211) ---------- ---------- Net Shares Purchased (Redeemed) ..... 84,431 (997,964) ---------- ---------- ---------- ----------
TELE- PRECIOUS COMMU- TRANS- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS PORTATION FUND FUND FUND FUND FUND FUND FUND ---------- ---------- -------- ---------- ---------- --------- --------- Shares Purchased .................... 1,253,353 2,899,946 529,122 5,554,287 6,519,738 819,298 3,449,624 Purchased through Dividend Reinvestment -- -- -- -- -- -- -- ---------- ---------- -------- ---------- ---------- --------- --------- Total Purchased ..................... 1,253,353 2,899,946 529,122 5,554,287 6,519,738 819,298 3,449,624 Shares Redeemed ..................... (1,125,152) (3,498,335) (392,943) (6,467,014) (6,447,525) (1,028,778) (3,855,833) ---------- ---------- -------- ---------- ---------- --------- --------- Net Shares Purchased (Redeemed) ..... 128,201 (598,389) 136,179 (912,727) 72,213 (209,480) (406,209) ---------- ---------- -------- ---------- ---------- --------- --------- ---------- ---------- -------- ---------- ---------- --------- --------- UTILITIES FUND --------- Shares Purchased .................... 5,362,023 Purchased through Dividend Reinvestment -- --------- Total Purchased ..................... 5,362,023 Shares Redeemed ..................... (5,329,108) --------- Net Shares Purchased ................ 32,915 --------- ---------
148 & 149 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- C CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ---------- --------- ---------- -------- ----------- -------- Shares Purchased ..................... 1,993,690 321,342 1,254,009 213,857 3,054,997 655,710 Purchased through Dividend Reinvestment -- -- -- -- -- -- ---------- --------- ---------- -------- ----------- -------- Total Purchased ...................... 1,993,690 321,342 1,254,009 213,857 3,054,997 655,710 Shares Redeemed ...................... (1,980,546) (346,150) (1,263,390) (231,189) (3,081,482) (682,438) ---------- --------- ---------- -------- ----------- -------- Net Shares Purchased (Redeemed) ...... 13,144 (24,808) (9,381) (17,332) (26,485) (26,728) ---------- --------- ---------- -------- ----------- -------- ---------- --------- ---------- -------- ----------- -------- ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND -------- --------- --------- Shares Purchased ..................... 343,890 816,501 2,020,853 Purchased through Dividend Reinvestment -- -- -- -------- --------- --------- Total Purchased ...................... 343,890 816,501 2,020,853 Shares Redeemed ...................... (377,067) (761,043) (1,944,586) -------- --------- --------- Net Shares Purchased (Redeemed) ...... (33,177) 55,458 76,267 -------- --------- --------- -------- --------- ---------
TELE- PRECIOUS COMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ---------- --------- ---------- -------- ----------- -------- Shares Purchased ..................... 259,464 412,273 1,053,892 1,209,414 21,152,383 1,126,115 Purchased through Dividend Reinvestment -- -- -- -- -- -- ---------- --------- ---------- ---------- ----------- ---------- Total Purchased ...................... 259,464 412,273 1,053,892 1,209,414 21,152,383 1,126,115 Shares Redeemed ...................... (255,142) (411,597) (904,163) (1,184,250) (21,098,213) (1,267,620) ---------- --------- ---------- ---------- ----------- ---------- Net Shares Purchased (Redeemed) ...... 4,322 676 149,729 25,164 54,170 (141,505) ---------- --------- ---------- ---------- ----------- ---------- ---------- --------- ---------- ---------- ----------- ---------- TRANS- PORTATION UTILITIES FUND FUND -------- --------- Shares Purchased ..................... 379,615 1,361,795 Purchased through Dividend Reinvestment -- -- --------- ----------- Total Purchased ...................... 379,615 1,361,795 Shares Redeemed ...................... (471,009) (1,091,502) --------- ----------- Net Shares Purchased (Redeemed) ...... (91,394) 270,293 --------- ----------- --------- -----------
Transactions in shares for the period ended March 31, 2003, were: INVESTOR CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ----------- ----------- ----------- ----------- ------------ ----------- Shares Purchased ..................... 53,790,341 23,176,880 59,629,471 13,698,087 150,628,344 36,631,701 Purchased through Dividend Reinvestment 33,658 2,832 -- 1,451 -- 589 ----------- ----------- ----------- ----------- ------------ ----------- Total Purchased ...................... 53,823,999 23,179,712 59,629,471 13,699,538 150,628,344 36,632,290 Shares Redeemed ...................... (56,177,271) (24,865,080) (62,014,921) (14,421,649) (152,409,245) (38,920,384) ----------- ----------- ----------- ----------- ------------ ----------- Net Shares Redeemed .................. (2,353,272) (1,685,368) (2,385,450) (722,111) (1,780,901) (2,288,094) ----------- ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ------------ ----------- ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ----------- ------------ ----------- Shares Purchased ..................... 18,199,897 110,594,671 71,257,046 Purchased through Dividend Reinvestment -- 3,076 -- ----------- ------------ ----------- Total Purchased ...................... 18,199,897 110,597,747 71,257,046 Shares Redeemed ...................... (19,641,645) (112,186,371) (71,613,117) ----------- ------------ ----------- Net Shares Redeemed .................. (1,441,748) (1,588,624) (356,071) ----------- ------------ ----------- ----------- ------------ -----------
TELE- PRECIOUS COMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ----------- ----------- ----------- ----------- ------------ ----------- Shares Purchased ..................... 9,826,143 16,246,563 44,600,033 105,648,234 89,643,821 41,841,592 Purchased through Dividend Reinvestment -- -- -- -- -- -- ----------- ----------- ----------- ----------- ------------ ----------- Total Purchased ...................... 9,826,143 16,246,563 44,600,033 105,648,234 89,643,821 41,841,592 Shares Redeemed ...................... (9,765,179) (16,593,130) (43,929,716) (107,225,305) (91,726,006) (41,229,651) ----------- ----------- ----------- ----------- ------------ ----------- Net Shares Purchased (Redeemed) ...... 60,964 (346,567) 670,317 (1,577,071) (2,082,185) 611,941 ----------- ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ------------ ----------- TRANS- PORTATION UTILITIES FUND FUND ----------- ----------- Shares Purchased ..................... 17,618,057 28,888,257 Purchased through Dividend Reinvestment -- 17,141 ----------- ----------- Total Purchased ...................... 17,618,057 28,905,398 Shares Redeemed ...................... (18,427,906) (29,339,007) ----------- ----------- Net Shares Redeemed .................. (809,849) (433,609) ----------- ----------- ----------- -----------
150 & 151 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- ADVISOR CLASS:
BASIC BIO- CONSUMER ENERGY BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES FUND FUND FUND FUND FUND FUND FUND ----------- ----------- ----------- ----------- ---------- ----------- ----------- Shares Purchased ..................... 16,243,287 4,207,440 7,687,002 5,716,227 9,483,776 10,173,332 8,927,113 Purchased through Dividend Reinvestment 28,865 253 -- 1,750 -- 838 -- ----------- ---------- ---------- ---------- ---------- ----------- ---------- Total Purchased ...................... 16,272,152 4,207,693 7,687,002 5,717,977 9,483,776 10,174,170 8,927,113 Shares Redeemed ...................... (18,984,895) (5,354,525) (6,896,705) (6,909,980) (9,118,402) (10,225,689) (9,810,164) ----------- ---------- ---------- ---------- ---------- ----------- ---------- Net Shares Purchased (Redeemed) ...... (2,712,743) (1,146,832) 790,297 (1,192,003) 365,374 (51,519) (883,051) ----------- ---------- ---------- ---------- ---------- ----------- ---------- ----------- ---------- ---------- ---------- ---------- ----------- ---------- FINANCIAL HEALTH SERVICES CARE FUND FUND ---------- ----------- Shares Purchased ..................... 6,397,464 13,305,753 Purchased through Dividend Reinvestment 4,165 -- ---------- ----------- Total Purchased ...................... 6,401,629 13,305,753 Shares Redeemed ...................... (8,473,228) (13,382,932) ---------- ----------- Net Shares Purchased (Redeemed) ...... (2,071,599) (77,179) ---------- ----------- ---------- -----------
TELE- COMMU- TRANS- INTERNET LEISURE RETAILING TECHNOLOGY NICATIONS PORTATION UTILITIES FUND FUND FUND FUND FUND FUND FUND ---------- ---------- ---------- ----------- ---------- ---------- ---------- Shares Purchased ..................... 3,197,287 2,412,445 7,022,075 11,792,419 9,146,007 4,960,127 4,706,225 Purchased through Dividend Reinvestment -- -- -- -- -- -- 3,428 ---------- ---------- ---------- ----------- ---------- ---------- ---------- Total Purchased ...................... 3,197,287 2,412,445 7,022,075 11,792,419 9,146,007 4,960,127 4,709,653 Shares Redeemed ...................... (3,174,642) (2,605,037) (8,558,981) (11,784,605) (9,117,683) (5,904,770) (4,810,484) ---------- ---------- ---------- ----------- ---------- ---------- ---------- Net Shares Purchased (Redeemed) ...... 22,645 (192,592) (1,536,906) 7,814 28,324 (944,643) (100,831) ---------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- ---------- ---------- ----------
C CLASS:
BASIC BIO- CONSUMER ENERGY BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES FUND FUND FUND FUND FUND FUND FUND ----------- ----------- ----------- ----------- ---------- ----------- ----------- Shares Purchased ..................... 1,907,925 440,990 1,763,096 469,107 5,466,495 1,324,101 751,233 Purchased through Dividend Reinvestment 1,166 34 -- 154 -- 19 -- ----------- ----------- ----------- ----------- ---------- ----------- ----------- Total Purchased ...................... 1,909,091 441,024 1,763,096 469,261 5,466,495 1,324,120 751,233 Shares Redeemed ...................... (1,900,146) (445,429) (1,686,109) (479,829) (5,370,678) (1,188,921) (744,427 ----------- ----------- ----------- ----------- ---------- ----------- ----------- Net Shares Purchased (Redeemed) ...... 8,945 (4,405) 76,987 (10,568) 95,817 135,199 6,806 ----------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- ----------- FINANCIAL HEALTH SERVICES CARE FUND FUND ---------- ---------- Shares Purchased ..................... 1,484,264 3,155,903 Purchased through Dividend Reinvestment 126 -- ---------- ---------- Total Purchased ...................... 1,484,390 3,155,903 Shares Redeemed ...................... (1,507,023) (3,205,658) ---------- ---------- Net Shares Purchased (Redeemed) ...... (22,633) (49,755) ---------- ---------- ---------- ----------
TELE- PRECIOUS COMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ---------- ---------- ---------- ----------- ---------- ---------- Shares Purchased ..................... 793,086 266,172 974,657 1,400,441 6,719,376 1,326,761 Purchased through Dividend Reinvestment -- -- -- -- -- -- ---------- ---------- ---------- ----------- ---------- ---------- Total Purchased ...................... 793,086 266,172 974,657 1,400,441 6,719,376 1,326,761 Shares Redeemed ...................... (786,341) (267,756) (925,885) (1,482,800) (6,696,317) (1,249,369) ---------- ---------- ---------- ----------- ---------- ---------- Net Shares Purchased (Redeemed) ...... 6,745 (1,584) 48,772 (82,359) 23,059 77,392 ---------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- ---------- ----------- ---------- ---------- TRANS- PORTATION UTILITIES FUND FUND ---------- ---------- Shares Purchased ..................... 457,416 2,047,356 Purchased through Dividend Reinvestment -- 692 ---------- ---------- Total Purchased ...................... 457,416 2,048,048 Shares Redeemed ...................... (454,386) (1,996,727) ---------- ---------- Net Shares Purchased ................ 3,030 51,321 ---------- ---------- ---------- ----------
152 & 153 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Transactions in dollars for the period ended September 30, 2003 were: INVESTOR CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ Shares Purchased ....................... $132,118,822 $129,303,464 $588,622,140 $ 49,882,220 $597,463,327 $139,980,195 Purchased through Dividend Reinvestment -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Total Purchased ........................ 132,118,822 129,303,464 588,622,140 49,882,220 597,463,327 139,980,195 Shares Redeemed ........................ (132,827,244) (127,648,326) (575,984,264) (50,059,465) (605,273,748) (130,636,972) ------------ ------------ ------------ ------------ ------------ ------------ Net Change ............................. $ (708,422) $ 1,655,138 $ 12,637,876 $ (177,245) $(7,810,421) $ 9,343,223 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ------------ ------------ ------------- Shares Purchased ....................... $298,011,228 $365,197,584 $ 230,794,265 Purchased through Dividend Reinvestment -- -- -- ------------ ------------ ------------- Total Purchased ........................ 298,011,228 365,197,584 230,794,265 Shares Redeemed ........................ (290,849,600) (362,312,648) (235,020,788) ------------ ------------ ------------- Net Change ............................. $ 7,161,628 $ 2,884,936 $ (4,226,523) ------------ ------------ ------------- ------------ ------------ -------------
TELE- PRECIOUS COMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ Shares Purchased ....................... $149,319,126 $182,852,131 $948,204,482 $450,473,567 $300,521,518 $168,382,538 Purchased through Dividend Reinvestment -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Total Purchased ........................ 149,319,126 182,852,131 948,204,482 450,473,567 300,521,518 168,382,538 Shares Redeemed ........................ (144,191,197) (181,588,160) (887,875,405) (447,054,113) (296,635,189) (172,040,813) ------------ ------------ ------------ ------------ ------------ ------------ Net Change ............................. $ 5,127,929 $ 1,263,971 $ 60,329,077 $ 3,419,454 $ 3,886,329 $ (3,658,275) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ TRANS- PORTATION UTILITIES FUND FUND ------------ ------------ Shares Purchased ....................... $ 90,799,633 $188,111,649 Purchased through Dividend Reinvestment -- -- ------------ ------------ Total Purchased ........................ 90,799,633 188,111,649 Shares Redeemed ........................ (87,901,825) (176,679,585) ------------ ------------ Net Change ............................. $ 2,897,808 $ 11,432,064 ------------ ------------ ------------ ------------
ADVISOR CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ Shares Purchased ....................... $ 28,550,685 $ 27,603,655 $ 64,524,370 $ 31,930,535 $ 80,268,452 $ 26,594,945 Purchased through Dividend Reinvestment -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Total Purchased ........................ 28,550,685 27,603,655 64,524,370 31,930,535 80,268,452 26,594,945 Shares Redeemed ........................ (28,952,368) (29,836,858) (73,072,673) (19,517,909) (81,145,030) (32,961,023) ------------ ------------ ------------ ------------ ------------ ------------ Net Change ............................. $ (401,683) $ (2,233,203) $ (8,548,303) $ 12,412,626 $ (876,578) $ (6,366,078) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ------------ ------------ ----------- Shares Purchased ....................... $ 21,590,593 $ 34,455,421 $56,568,100 Purchased through Dividend Reinvestment -- -- -- ------------ ------------ ----------- Total Purchased ........................ 21,590,593 34,455,421 56,568,100 Shares Redeemed ........................ (22,336,587) (34,999,107) (66,156,398) ------------ ------------ ----------- Net Change ............................. $ (745,994) $ (543,686) $(9,588,298) ------------ ------------ ----------- ------------ ------------ -----------
TELE- PRECIOUS COMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ Shares Purchased ....................... $ 33,867,320 $ 41,887,878 $ 18,612,744 $ 51,778,988 $ 61,304,046 $ 9,348,551 Purchased through Dividend Reinvestment -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Total Purchased ........................ 33,867,320 41,887,878 18,612,744 51,778,988 61,304,046 9,348,551 Shares Redeemed ........................ (29,803,516) (45,468,017) (13,932,979) (60,686,428) (58,669,253) (9,610,815) ------------ ------------ ------------ ------------ ------------ ------------ Net Change ............................. $ 4,063,804 $ (3,580,139) $ 4,679,765 $ (8,907,440) $ 2,634,793 $ (262,264) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ TRANS- PORTATION UTILITIES FUND FUND ------------ ------------ Shares Purchased ....................... $ 40,617,624 $ 61,570,613 Purchased through Dividend Reinvestment -- -- ------------ ------------ Total Purchased ........................ 40,617,624 61,570,613 Shares Redeemed ........................ (38,872,550) (56,591,334) ------------ ------------ Net Change ............................. $ 1,745,074 $ 4,979,279 ------------ ------------ ------------ ------------
154 & 155 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- C CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS FUND FUND FUND FUND FUND ------------ ------------- -------------- ------------- -------------- Shares Purchased ..................... $ 16,507,092 $ 6,250,181 $ 20,994,276 $ 4,821,180 $ 32,410,835 Purchased through Dividend Reinvestment -- -- -- -- -- ------------ ------------- -------------- ------------- -------------- Total Purchased ...................... 16,507,092 6,250,181 20,994,276 4,821,180 32,410,835 Shares Redeemed ...................... (16,398,433) (6,047,974) (20,727,022) (4,760,534) (32,997,119) ------------ ------------- -------------- ------------- -------------- Net Change ........................... $ 108,659 $ 202,207 $ 267,254 $ 60,646 $ (586,284) ------------ ------------- -------------- ------------- -------------- ------------ ------------- -------------- ------------- -------------- ENERGY FINANCIAL HEALTH ENERGY SERVICES SERVICES CARE FUND FUND FUND FUND ------------ ------------- ------------ ------------ Shares Purchased ..................... $ 6,265,615 $ 5,891,098 $ 6,916,678 $ 21,740,339 Purchased through Dividend Reinvestment -- -- -- -- ------------ ------------- ------------ ------------ Total Purchased ...................... 6,265,615 5,891,098 6,916,678 21,740,339 Shares Redeemed ...................... (6,414,132) (5,096,506) (6,458,440) (21,131,910) ------------ ------------- ------------ ------------ Net Change ........................... $ (148,517) $ 794,592 $ 458,238 $ 608,429 ------------ ------------- ------------ ------------ ------------ ------------- ------------ ------------
PRECIOUS INTERNET LEISURE METALS RETAILING TECHNOLOGY FUND FUND FUND FUND FUND ------------ ------------- -------------- ------------- -------------- Shares Purchased ..................... $ 6,982,291 $ 6,753,829 $ 33,282,199 $ 11,249,538 $ 192,430,471 Purchased through Dividend Reinvestment -- -- -- -- -- ------------ ------------- -------------- ------------- -------------- Total Purchased ...................... 6,982,291 6,753,829 33,282,199 11,249,538 192,430,471 Shares Redeemed ...................... (6,835,525) (6,652,986) (28,275,789) (11,266,641) (192,601,740) ------------ ------------- -------------- ------------- -------------- Net Change ........................... $ 146,766 $ 100,843 $ 5,006,410 $ (17,103) $ (171,269) ------------ ------------- -------------- ------------- -------------- ------------ ------------- -------------- ------------- -------------- TELE- COMMU- TRANS- NICATIONS PORTATION UTILITIES FUND FUND FUND ------------ ------------- ------------ Shares Purchased ..................... $ 13,020,605 $ 5,789,662 $23,177,070 Purchased through Dividend Reinvestment -- -- -- ------------ ------------- ------------ Total Purchased ...................... 13,020,605 5,789,662 23,177,070 Shares Redeemed ...................... (12,842,484) (6,117,575) (15,872,808) ------------ ------------- ------------ Net Change ........................... $ 178,121 $ (327,913) $ 7,304,262 ------------ ------------- ------------ ------------ ------------- ------------
Transactions in dollars for the period ended March 31, 2003 were: INVESTOR CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS FUND FUND FUND FUND FUND ------------ ------------- -------------- ------------- -------------- Shares Purchased ..................... $445,827,706 $482,561,832 $ 873,455,045 $ 324,057,874 $1,522,438,055 Purchased through Dividend Reinvestment 261,521 53,699 -- 32,911 -- ------------ ------------- -------------- ------------- -------------- Total Purchased ...................... 446,089,227 482,615,531 873,455,045 324,090,785 1,522,438,055 Shares Redeemed ...................... (463,817,307) (514,641,516) (903,789,059) (339,391,595) (1,545,768,499) ------------ ------------- -------------- ------------- -------------- Net Change ........................... $(17,728,080) $(32,025,985) $ (30,334,014) $ (15,300,810) $ (23,330,444) ------------ ------------- -------------- ------------- -------------- ------------ ------------- -------------- ------------- -------------- ENERGY FINANCIAL HEALTH ENERGY SERVICES SERVICES CARE FUND FUND FUND FUND ------------ ------------- ------------ ------------ Shares Purchased ..................... $346,034,744 $344,775,885 $946,033,380 $687,229,053 Purchased through Dividend Reinvestment 5,209 -- 25,989 -- ------------ ------------- ------------ ------------ Total Purchased ...................... 346,039,953 344,775,885 946,059,369 687,229,053 Shares Redeemed ...................... (367,801,763) (372,587,206) (957,476,158) (687,154,016) ------------ ------------- ------------ ------------ Net Change ........................... $(21,761,810) $(27,811,321) $(11,416,789) $ 75,037 ------------ ------------- ------------ ------------ ------------ ------------- ------------ ------------
PRECIOUS INTERNET LEISURE METALS RETAILING TECHNOLOGY FUND FUND FUND FUND FUND ------------ ------------- -------------- ------------- -------------- Shares Purchased ..................... $208,471,129 $ 350,405,768 $1,285,154,394 $ 970,145,805 $ 695,156,775 Purchased through Dividend Reinvestment -- -- -- -- -- ------------ ------------- -------------- ------------- -------------- Total Purchased ...................... 208,471,129 350,405,768 1,285,154,394 970,145,805 695,156,775 Shares Redeemed ...................... (207,528,245) (356,786,581) (1,257,328,625) (983,180,224) (714,120,317) ------------ ------------- -------------- ------------- -------------- Net Change ........................... $ 942,884 $ (6,380,813) $ 27,825,769 $ (13,034,419) $ (18,963,542) ------------ ------------- -------------- ------------- -------------- ------------ ------------- -------------- ------------- -------------- TELE- COMMU- TRANS- NICATIONS PORTATION UTILITIES FUND FUND FUND ------------ ------------- ------------ Shares Purchased ..................... $451,816,605 $ 317,550,530 $527,908,429 Purchased through Dividend Reinvestment -- -- 284,885 ------------ ------------- ------------ Total Purchased ...................... 451,816,605 317,550,530 528,193,314 Shares Redeemed ...................... (442,375,031) (329,571,936) (536,758,603) ------------ ------------- ------------ Net Change ........................... $ 9,441,574 $ (12,021,406) $ (8,565,289) ------------ ------------- ------------ ------------ ------------- ------------
156 & 157 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------- ADVISOR CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ----------- ------------ ------------ ------------- ------------ ------------ Shares Purchased $132,679,487 $ 85,554,061 $105,695,226 $ 135,252,100 $ 88,503,612 $95,385,337 Purchased through Dividend Reinvestment . 217,351 4,701 -- 38,954 -- 7,277 ------------ ------------ ------------ ------------- ------------ ------------ Total Purchased ......................... 132,896,838 85,558,762 105,695,226 135,291,054 88,503,612 95,392,614 Shares Redeemed ......................... (152,116,630) (109,813,788) (93,483,378) (161,132,182) (84,649,411) (94,658,264) ------------ ------------ ------------ ------------- ------------ ------------ Net Change .............................. $(19,219,792) $(24,255,026) $ 12,211,848 $(25,841,128) $ 3,854,201 $ 734,350 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ------------ ------------ ------------ Shares Purchased $166,344,712 $ 56,995,595 $121,776,181 Purchased through Dividend Reinvestment . -- 34,690 -- ------------ ------------ ------------ Total Purchased ......................... 166,344,712 57,030,285 121,776,181 Shares Redeemed ......................... (180,400,292) (75,253,310) (122,710,756) ------------ ------------ ------------ Net Change .............................. $(14,055,580) $(18,223,025) $ (934,575) ------------ ------------ ------------ ------------ ------------ ------------
TELE- COMMU- TRANS- INTERNET LEISURE RETAILING TECHNOLOGY NICATIONS PORTATION FUND FUND FUND FUND FUND FUND ----------- ---------- ----------- ----------- ------------ ------------ Shares Purchased ........................ $ 70,134,024 $52,911,899 $ 63,273,813 $ 89,067,112 $ 94,812,121 $ 80,017,567 Purchased through Dividend Reinvestment . -- -- -- -- -- -- ----------- ---------- ----------- ----------- ------------ ------------ Total Purchased ......................... 70,134,024 52,911,899 63,273,813 89,067,112 94,812,121 80,017,567 Shares Redeemed ......................... (67,064,784) (58,409,721) (81,283,745) (90,319,054) (95,071,065) (97,007,029) ----------- ---------- ----------- ----------- ------------ ------------ Net Change .............................. $ 3,069,240 $(5,497,822) $(18,009,932) $ (1,251,942) $ (258,944) $(16,989,462) ----------- ---------- ----------- ----------- ------------ ------------ ----------- ---------- ----------- ----------- ------------ ------------ UTILITIES FUND ----------- Shares Purchased ........................ $82,313,495 Purchased through Dividend Reinvestment . 56,158 ----------- Total Purchased ......................... 82,369,653 Shares Redeemed ......................... (83,957,597) ----------- Net Change .............................. $(1,587,944) ----------- -----------
C CLASS:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ------------ ---------- ----------- ----------- ------------ ------------ Shares Purchased ........................ $ 15,840,535 $9,180,208 $24,842,016 $11,244,919 $ 48,835,096 $ 12,067,558 Purchased through Dividend Reinvestment . 8,881 638 -- 3,455 -- 164 ------------ ---------- ----------- ----------- ------------ ------------ Total Purchased ......................... 15,849,416 9,180,846 24,842,016 11,248,374 48,835,096 12,067,722 Shares Redeemed ......................... (15,788,107) (9,170,454) (23,626,946) (11,344,804) (46,848,202) (10,813,439) ------------ ---------- ----------- ----------- ------------ ------------ Net Change .............................. $ 61,309 $ 10,392 $ 1,215,070 $ (96,430) $ 1,986,894 $ 1,254,283 ------------ ---------- ----------- ----------- ------------ ------------ ------------ ---------- ----------- ----------- ------------ ------------ ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ----------- ------------ ------------ Shares Purchased ........................ $14,761,207 $ 12,204,616 $ 29,431,097 Purchased through Dividend Reinvestment . -- 1,050 -- ----------- ------------ ------------ Total Purchased ......................... 14,761,207 12,205,666 29,431,097 Shares Redeemed ......................... (14,326,258) (12,546,977) (29,748,669) ----------- ------------ ------------ Net Change .............................. $ 434,949 $ (341,311) $ (317,572) ----------- ------------ ------------ ----------- ------------ ------------
TELE- PRECIOUS COMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ----------- ---------- ----------- ----------- ------------ ------------ Shares Purchased ........................ $16,743,908 $5,979,399 $28,203,728 $13,329,032 $ 50,454,993 $ 14,297,437 Purchased through Dividend Reinvestment . -- -- -- -- -- -- ----------- ---------- ----------- ----------- ------------ ------------ Total Purchased ......................... 16,743,908 5,979,399 28,203,728 13,329,032 50,454,993 14,297,437 Shares Redeemed ......................... (16,786,993) (5,898,080) (26,905,940) (14,232,153) (50,142,827) (13,413,776) ----------- ---------- ----------- ----------- ------------ ------------ Net Change .............................. $ (43,085) $ 81,319 $ 1,297,788 $ (903,121) $ 312,166 $ 883,661 ----------- ---------- ----------- ----------- ------------ ------------ ----------- ---------- ----------- ----------- ------------ ------------ TRANS- PORTATION UTILITIES FUND FUND ----------- ------------ Shares Purchased ........................ $ 7,958,722 $ 36,006,588 Purchased through Dividend Reinvestment . -- 11,226 ----------- ------------ Total Purchased ......................... 7,958,722 36,017,814 Shares Redeemed ......................... (8,006,862) (34,529,907) ----------- ------------ Net Change .............................. $ (48,140) $ 1,487,907 ----------- ------------ ----------- ------------
158 & 159 SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 7. NET ASSETS At September 30, 2003, net assets consisted of:
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS ELECTRONICS ENERGY FUND FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ ------------ Paid-In-Capital ............................ $57,523,218 $ 29,517,185 $ 350,357,333 $ 34,363,252 $ 203,094,131 $ 37,083,440 Undistributed Net Investment Income (Loss) . 457,145 75,801 (1,210,290) 45,758 (463,080) 58,108 Accumulated Net Realized Loss on Investments (50,157,696) (23,312,425) (210,043,284) (16,547,681) (171,787,698) (20,892,679) Net Unrealized Appreciation on Investments . 1,396,423 899,565 41,278,739 1,478,387 16,598,707 823,508 ------------ ------------ ------------- ------------ ------------ ------------ Net Assets ................................. $ 9,219,090 $ 7,180,126 $ 180,382,498 $ 19,339,716 $ 47,442,060 $ 17,072,377 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ENERGY FINANCIAL HEALTH SERVICES SERVICES CARE FUND FUND FUND ------------ ------------ ------------ Paid-In-Capital ............................ $ 98,104,186 $ 83,273,936 $ 60,493,819 Undistributed Net Investment Income (Loss) . (127,895) 348,266 (180,306) Accumulated Net Realized Loss on Investments (82,379,555) (56,456,019) (36,384,469) Net Unrealized Appreciation on Investments . 3,264,111 4,568,197 5,319,167 ------------ ------------ ------------ Net Assets ................................. $ 18,860,847 $ 31,734,380 $ 29,248,211 ------------ ------------ ------------ ------------ ------------ ------------
PRECIOUS TELECOMMU- INTERNET LEISURE METALS RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ ------------ Paid-In-Capital ............................ $ 51,246,283 $ 21,584,741 $ 216,452,293 $ 53,547,945 $120,984,333 $ 48,841,547 Undistributed Net Investment Income (Loss) . (114,748) (46,283) 76,395 (200,621) (368,897) 40,646 Accumulated Net Realized Loss on Investments (38,469,908) (17,815,453) (88,164,910) (41,006,332) (84,491,950) (42,216,262) Net Unrealized Appreciation on Investments . 2,257,682 991,321 46,478,923 5,153,564 7,571,198 2,454,001 ------------ ------------ ------------- ------------ ------------ ------------ Net Assets ................................. $ 14,919,309 $ 4,714,326 $ 174,842,701 $ 17,494,556 $ 43,694,684 $ 9,119,932 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ TRANS- PORTATION UTILITIES FUND FUND ------------ ------------ Paid-In-Capital ............................ $ 29,829,388 $ 53,251,036 Undistributed Net Investment Income (Loss) . (29,578) 471,924 Accumulated Net Realized Loss on Investments (20,398,617) (15,849,202) Net Unrealized Appreciation on Investments . 927,332 3,144,790 ------------ ------------ Net Assets ................................. $ 10,328,525 $ 41,018,548 ------------ ------------ ------------ ------------
160 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 8. PORTFOLIO SECURITIES LOANED The Trust lends its securities to approved brokers to earn additional income. Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the agent, and other approved registered broker dealers act as the borrowers. The Trust receives cash collateral, valued at 102% of the value of the securities on loan, which is initially held in a segregated account at U.S. Bank. As agent, U.S. Bank may, for investment purposes, pool the Trust's collateral in joint accounts with cash collateral from one or more other securities lending customers of U.S. Bank. Under the terms of the Trust's securities lending agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in certain high quality, liquid investments. At September 30, 2003, the pooled cash collateral investments consisted of repurchase agreements (78.46%), commercial paper (11.99%), fixed income notes (9.43%), and mutual funds (0.12%). Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. The Trust holds the cash collateral in a segregated account at its custodian bank. Although the collateral mitigates risk, the Trust could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Trust has the right under the securities lending agreement to recover the securities from the borrower on demand. At September 30, 2003 the following funds participated in securities lending and received cash collateral: FUND CASH COLLATERAL VALUE OF SECURITIES LOANED ------ --------------- -------------------------- Banking Fund .................. $ 1,086,523 $ 1,047,180 Basic Materials Fund .......... 2,696,991 2,565,901 Biotechnology Fund ............ 71,262,898 68,509,998 Consumer Products Fund ........ 2,148,000 2,075,690 Electronics ................... 21,097,893 19,452,469 Energy Fund ................... 2,401,818 2,321,569 Energy Services Fund .......... 3,781,502 3,617,219 Financial Services Fund ....... 4,611,859 4,427,445 Health Care Fund .............. 4,118,652 3,927,222 Internet Fund ................. 6,590,067 6,210,887 Leisure Fund .................. 477,949 458,377 Precious Metals Fund .......... 76,910,089 73,509,847 Retailing Fund ................ 3,769,069 3,573,919 Technology .................... 13,389,957 12,545,100 Telecommunications Fund ....... 2,753,415 2,588,059 Transportation Fund ........... 2,884,681 2,747,702 Utilities Fund ................ 7,656,523 7,240,691 SEMI-ANNUAL REPORT 161 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) -------------------------------------------------------------------------------- 9. REVERSE STOCK SPLITS Effective April 21, 2003, the Basic Materials Fund, Consumer Products Fund, Energy Services Fund, Leisure Fund, Telecommunications Fund, Transportation Fund, and Utilities Fund, Investor Class shares, Advisor Class shares, and C Class shares, underwent a 1-for-3 reverse split. The effect of this transaction was to divide the number of outstanding shares in each Fund by three, while multiplying the net asset value per share by three. There was no change in the aggregate market value of the outstanding shares as a result of this transaction. 10. CHANGE IN INDEPENDENT AUDITORS Effective August 25, 2003, the Trust has retained PricewaterhouseCoopers LLP to serve as the Trust's independent auditors. 11. PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC's site at http://www.sec.gov. [LOGO OMITTED] Rydex Investments Essential for modern markets[TM] 9601 Blackwell Road Suite 500 Rockville,MD 20850 800.820.0888 www.rydexfunds.com THE RYDEX SERIES FUNDS Strategic Funds Semi-Annual Report September 30, 2003 Core Equity Fund Sector Rotation Fund [LOGO OMITTED] RYDEX INVESTMENTS ESSENTIAL FOR MODERN MARKETS TM RSFSA-3-11/03 This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Distributed by Rydex Distributors, Inc. SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS ......................................... 2 SCHEDULES OF INVESTMENTS ........................................... 3 STATEMENTS OF ASSETS AND LIABILITIES ............................... 19 STATEMENTS OF OPERATIONS ........................................... 20 STATEMENTS OF CHANGES IN NET ASSETS ................................ 21 FINANCIAL HIGHLIGHTS ............................................... 24 NOTES TO FINANCIAL STATEMENTS ...................................... 28 -------------------------------------------------------------------------------- 2 DEAR SHAREHOLDER: The period April 1 through September 30, 2003 can be characterized by remarkable resilience in the financial markets and cautious optimism on the economy. Having started the period in a time of high geopolitical uncertainty and weak economic activity, the markets returned double-digit gains across the board. Most notable in the rally was the solid outperformance of the technology sector and small-capitalization stocks. For the period, small-cap stocks, as measured by the Russell 2000(R) outperformed the predominantly large-cap S&P 500(R), by an incredible 16.17%, returning 34.62% and 18.45%, respectively. Similarly, the tech-heavy Nasdaq 100(R) returned 27.98%, beating the S&P 500 by 9.53%. The mutual fund industry was rocked by revelations of trading abuses by corporate executives and fund managers, as well as disclosure of special deals for top customers. The charges and allegations as presented by New York Attorney General, Eliot Spitzer, represent a serious breach of fiduciary duty and are almost certain to bring regulatory changes to the industry. The term "market-timing" has, unfortunately, taken the connotation of illicit investor behavior. However, we believe that funds designed to accommodate active trading can be an important tool in a tactical asset allocation strategy provided trading activity is monitored and the rules to protect current shareholders are strictly enforced. Rydex's two strategic funds, Core Equity Fund and Sector Rotation Fund, both outpaced the S&P 500 for the period, delivering 21.77% and 21.90% returns, respectively. Rydex Core Equity Fund outperformed most relative indices due to the fund's strategy of seeking stocks in the growth/value intersection and was most successful in the mid- and small-capitalization ranges. The fund benefited from limiting its exposure to a few notable large-cap stocks that struggled, including Pfizer, Verizon and Merck. Conversely, the fund maintained profitable positions in Cytec Corp. and Sears Roebuck & Co., up 42% and 31% in the third quarter of the year. The themes that propelled the market higher during the period also benefited Rydex Sector Rotation Fund, which uses a momentum strategy to identify which sectors and industries are showing strength. Especially notable has been the unrelenting rally in internet-related companies. The fund has owned the internet and catalog retail industry for over a year now, during which time the position has gained roughly 100%. Other holdings that have appreciated nicely are biotechnology, internet software and services and semiconductors. In fact, industries in the technology sector now comprise over one third of the fund. Another third of the fund is invested in consumer discretionary industries, which have benefited handsomely from strong consumer spending. Rounding out the rest of the positions are recent success stories such as metals and mining, airlines and certain financial services industries. On the fixed-income side, uneven reports of a stronger economy, positive and negative unemployment data and increasing bond issuance led to volatility in the Treasury market throughout the period. On June 16, when the Long Bond yield hit a low of 4.17%, more positive economic data and improving investor sentiment initiated an upward trend in rates that topped out on August 15 at 5.45%. Further uncertainty surrounding the labor market pushed yields lower. Despite the fixed-income market's lack of direction, the Long Bond yielded 4.88% on September 30, 2003, closely matching the 4.82% yield recorded on March 31, 2003. The outlook for higher interest rates and the speculation of a "bond bubble" has led to increased inflows to Rydex Juno Fund. Juno's assets reached $674.3 million at the end of the third quarter up from $189.9 million at March 31, 2003. This inverse bond fund is an option for investors to speculate on rising interest rates or to protect fixed-income holdings in a rising interest rate environment. (Juno Fund is part of the Rydex Benchmark Funds and is reported on separately.) Staging a surprising comeback were the stocks of European and Japanese companies, which have been con-spicuously underperforming in recent years. Rydex Large-Cap Europe Fund rose 29.76% reflecting improving fundamentals and a strong Euro versus the U.S. dollar. Rydex Large-Cap Japan rose an astounding 43.10% for the period reflecting improvements in Japanese domestic growth and growing global investor confidence. (Large-Cap Europe Fund and Large-Cap Japan Fund are part of the Rydex Benchmark Funds and are reported on separately.) Times such as these can be challenging for investors. At Rydex Investments, we acknowledge and appreciate the trust you have placed in our firm's quality and integrity by investing with us. Sincerely, /S/ CARL G. VERBONCOEUR Carl G. Verboncoeur Chief Executive Officer Rydex Investments SEMI-ANNUAL REPORT 3 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- COMMON STOCKS 96.4% FINANCIALS 21.3% INSURANCE 6.8% Fidelity National Financial, Inc. ............................ 8,773 $ 263,716 Kansas City Life Insurance Co. ................... 5,678 260,393 Commerce Group, Inc. .............. 6,779 257,331 First American Corp. .............. 9,873 245,838 Harleysville Group, Inc. .......... 10,490 244,522 W.R. Berkley Corp. ................ 7,039 241,156 Prudential Financial, Inc. ........ 6,393 238,843 FBL Financial Group, Inc.--Class A ................... 9,558 235,509 American National Insurance Co. ................... 2,701 229,720 Odyssey Re Holdings Corp. ........................... 10,994 226,257 LandAmerica Financial Group, Inc. ..................... 4,679 214,485 Old Republic International Corp. ............. 2,888 95,564 Stewart Information Services Corp.* ................. 3,130 88,391 American International Group, Inc. ..................... 1,226 70,740 Infinity Property & Casualty Corp. .................. 2,140 60,155 MBIA, Inc. ........................ 1,051 57,773 Markel Corp.* ..................... 206 55,002 Allstate Corp. .................... 1,401 51,179 Lincoln National Corp. ............ 1,436 50,806 Travelers Property Casualty Corp.-- Class B ......................... 2,992 47,513 Cincinnati Financial Corp. ........................... 994 39,720 Phoenix Cos., Inc. ................ 2,395 27,662 PMA Capital Corp.-- Class A ......................... 1,998 25,035 Enstar Group, Inc.* ............... 421 16,524 Jefferson-Pilot Corp. ............. 170 7,545 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- MGIC Investment Corp. ............. 130 $ 6,769 Ohio Casualty Corp.* .............. 390 5,655 ----------- TOTAL INSURANCE 3,363,803 ----------- DIVERSIFIED FINANCIALS 5.8% Citigroup, Inc. ................... 11,191 509,302 Merrill Lynch & Co., Inc. ............................ 6,315 338,042 Freddie Mac ....................... 6,156 322,266 Capital One Financial Corp. ........................... 5,433 309,898 Lehman Brothers Holdings, Inc. .................. 4,195 289,791 J.P. Morgan Chase & Co. ........... 6,895 236,705 CompuCredit Corp.* ................ 9,662 169,085 Morgan Stanley .................... 3,319 167,477 ITLA Capital Corp.* ............... 3,094 131,835 Principal Financial Group, Inc. ..................... 2,683 83,146 Bear Stearns Cos., Inc. ........... 737 55,128 SWS Group, Inc. ................... 2,369 46,693 Jefferies Group, Inc. ............. 1,620 46,575 World Acceptance Corp.* .......................... 3,407 46,165 LaBranche & Co., Inc. ............. 2,066 30,164 A.G. Edwards, Inc. ................ 760 29,192 MBNA Corp. ........................ 580 13,224 Charles Schwab Corp. .............. 840 10,004 Neuberger Berman, Inc. ............ 210 8,793 SEI Investments Co. ............... 260 8,450 Waddell & Reed Financial, Inc.--Class A ................... 340 8,014 American Express Co. .............. 35 1,577 ----------- TOTAL DIVERSIFIED FINANCIALS 2,861,526 ----------- BANKS 5.1% Bank of America Corp. ............. 5,720 446,389 FleetBoston Financial Corp. ........................... 9,069 273,430 Washington Mutual, Inc. ........... 6,696 263,621 Flagstar Bancorp, Inc. ............ 10,071 231,129 WSFS Financial Corp. .............. 4,889 206,316 Wachovia Corp. .................... 3,388 139,552 *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 4 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- U.S. Bancorp ...................... 5,537 $ 132,833 FMS Financial Corp. ............... 3,818 63,951 Waypoint Financial Corp. .......... 2,178 43,560 First Essex Bancorp, Inc. ......... 853 43,409 Wells Fargo & Co. ................. 840 43,260 MainSource Financial Group, Inc. ..................... 1,590 41,197 First Financial Corp./IN .......... 595 35,938 National City Corp. ............... 1,214 35,764 Citizens First Bancorp, Inc. ............................ 1,694 35,066 Union Planters Corp. .............. 1,098 34,741 WesBanco, Inc. .................... 1,460 34,310 PNC Financial Services Group, Inc. ..................... 713 33,925 Camden National Corp. ............. 1,145 33,789 United Community Financial Corp./OH .............. 3,411 33,769 CFS Bancorp, Inc. ................. 2,419 33,672 First Place Financial Corp./OH ........................ 1,869 33,175 First Citizens BancShares, Inc.--Class A ................... 257 27,165 Bank One Corp. .................... 630 24,349 Banknorth Group, Inc. ............. 537 15,154 AmSouth Bancorporation ............ 480 10,186 South Financial Group, Inc. ............................ 390 9,707 Charter One Financial, Inc. ............................ 310 9,486 Commercial Federal Corp. ........................... 380 9,253 Marshall & Ilsley Corp. ........... 280 8,826 Susquehanna Bancshares, Inc. ............................ 330 8,481 Berkshire Hills Bancorp, Inc. ............................ 245 8,254 Southwest Bancorp, Inc./OK ......................... 460 7,751 First Sentinel Bancorp, Inc. ............................ 430 7,693 ABC Bancorp ....................... 490 7,649 Republic Bancorp, Inc./MI ......................... 559 7,446 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Hudson River Bancorp, Inc. ............................ 230 $ 7,390 Zions Bancorporation .............. 130 7,260 Mellon Financial Corp. ............ 240 7,234 West Coast Bancorp/OR ............. 370 7,226 Mid-State Bancshares .............. 310 6,904 UMB Financial Corp. ............... 140 6,604 Chemical Financial Corp. .......... 210 6,499 Peoples Holding Co. ............... 140 6,376 Hancock Holding Co. ............... 120 5,922 First Bancorp/NC .................. 210 5,882 Banner Corp. ...................... 260 5,382 ----------- TOTAL BANKS 2,506,875 ----------- REAL ESTATE 3.6% Omega Healthcare Investors, Inc.* ................ 35,772 274,729 Hospitality Properties Trust ........................... 7,535 264,328 Corrections Corp. of America* ..................... 10,630 262,242 HRPT Properties Trust ............. 25,936 237,055 Mack-Cali Realty Corp. ............ 3,916 153,507 LTC Properties, Inc. .............. 10,558 122,262 Koger Equity, Inc. ................ 2,640 49,632 Corporate Office Properties Trust SBI MD .............................. 2,464 45,609 Kilroy Realty Corp. ............... 1,531 43,710 Correctional Properties Trust ........................... 1,682 41,966 Senior Housing Properties Trust ................ 2,851 41,083 Winston Hotels, Inc. .............. 4,335 39,448 National Health Investors, Inc. ............................ 1,975 36,004 RAIT Investment Trust ............. 1,448 33,246 Glenborough Realty Trust, Inc. ............................ 1,658 31,270 Bedford Property Investors, Inc. ............................ 1,122 29,116 Brandywine Realty Trust ........... 350 8,991 Capital Automotive REIT ........... 280 8,543 SL Green Realty Corp. ............. 220 7,944 *NON-INCOME PRODUCING SECURITIES REIT--REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. SEMI-ANNUAL REPORT 5 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- EastGroup Properties, Inc. ............................ 250 $ 6,945 Heritage Property Investment Trust ................ 240 6,931 Healthcare Realty Trust, Inc. ............................ 210 6,716 Innkeepers USA Trust .............. 720 6,264 Prentiss Properties Trust ......... 190 5,890 ----------- TOTAL REAL ESTATE 1,763,431 ----------- TOTAL FINANCIALS 10,495,635 ----------- INFORMATION TECHNOLOGY 18.0% COMMUNICATIONS EQUIPMENT 4.5% Cisco Systems, Inc.* .............. 21,869 427,320 Motorola, Inc. .................... 29,400 351,918 QUALCOMM, Inc. .................... 7,932 330,288 Adaptec, Inc.* .................... 37,559 283,946 Comverse Technology, Inc.* ........................... 11,409 170,679 Corning, Inc.* .................... 16,588 156,259 Avocent Corp.* .................... 4,657 141,060 Comtech Telecommunications Corp.* .......................... 5,002 119,598 Computer Network Technology Corp.* ............... 10,248 88,953 Scientific-Atlanta, Inc. .......... 1,860 57,939 Oplink Communications, Inc.* ........................... 16,185 40,948 ADTRAN, Inc. ...................... 509 31,141 Aspect Communications Corp.* .......................... 1,654 13,778 Harris Corp. ...................... 180 6,442 ----------- TOTAL COMMUNICATIONS EQUIPMENT 2,220,269 ----------- COMPUTERS & PERIPHERALS 3.2% Hutchinson Technology, Inc.* ........................... 8,605 284,826 EMC Corp./MA* ..................... 18,161 229,374 International Business Machines Corp. .................. 2,395 211,550 Hewlett-Packard Co. ............... 10,857 210,192 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Western Digital Corp.* ............ 9,269 $ 119,478 Storage Technology Corp.* .......................... 4,194 101,243 Rainbow Technologies, Inc.* ........................... 10,460 95,604 Apple Computer, Inc.* ............. 3,411 70,369 Imation Corp. ..................... 1,645 53,709 Diebold, Inc. ..................... 876 44,369 Dell, Inc.* ....................... 1,115 37,230 NCR Corp.* ........................ 1,157 36,665 Applied Films Corp.* .............. 1,210 35,973 Sun Microsystems, Inc.* ........... 3,860 12,777 ----------- TOTAL COMPUTERS & PERIPHERALS 1,543,359 ----------- SOFTWARE 2.7% Microsoft Corp. ................... 12,285 341,400 TALX Corp. ........................ 7,453 183,493 Inet Technologies, Inc.* .......... 8,295 107,337 Group 1 Software, Inc.* ........... 4,762 85,573 Citrix Systems, Inc.* ............. 3,314 73,173 Computer Associates International, Inc. ............. 2,683 70,053 Veritas Software Corp.* ........... 2,066 64,872 Macrovision Corp.* ................ 3,495 64,553 Hyperion Solutions Corp.* .......................... 2,164 62,475 Sanchez Computer Associates, Inc.* ............... 14,682 56,379 SPSS, Inc.* ....................... 2,580 43,525 RSA Security, Inc.* ............... 2,118 30,245 Electronic Arts, Inc.* ............ 260 23,980 Micromuse, Inc.* .................. 2,703 22,110 Adobe Systems, Inc. ............... 550 21,593 Serena Software, Inc.* ............ 822 15,289 PeopleSoft, Inc.* ................. 660 12,005 Roxio, Inc.* ...................... 1,244 10,785 Cadence Design Systems, Inc.* ........................... 760 10,184 Siebel Systems, Inc.* ............. 1,030 10,012 Macromedia, Inc.* ................. 313 7,744 Network Associates, Inc.* ......... 460 6,330 Reynolds & Reynolds Co.--Class A .................... 200 5,510 Ansoft Corp.* ..................... 509 5,217 *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. -------------------------------------------------------------------------------- 6 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Oracle Corp.* ..................... 164 $ 1,840 Synopsys, Inc.* ................... 40 1,231 ----------- TOTAL SOFTWARE 1,336,908 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS 2.7% Intel Corp. ....................... 22,448 617,545 Lattice Semiconductor Corp.* .......................... 21,232 150,960 Atmel Corp.* ...................... 26,621 106,750 Intersil Corp.--Class A* .......... 3,906 92,963 Varian Semiconductor Equipment Associates, Inc.* ........................... 2,271 85,049 NVIDIA Corp.* ..................... 5,043 80,239 Genesis Microchip, Inc.* .......... 4,707 52,765 Applied Materials, Inc.* .......... 2,680 48,615 KLA-Tencor Corp.* ................. 460 23,644 GlobespanVirata, Inc.* ............ 2,715 19,602 Broadcom Corp.-- Class A* ........................ 500 13,310 Maxim Integrated Products, Inc. .................. 280 11,060 LSI Logic Corp.* .................. 1,080 9,709 ----------- TOTAL SEMICONDUCTOR EQUIPMENT & PRODUCTS 1,312,211 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.1% CDW Corp. ......................... 5,128 296,091 Planar Systems, Inc.* ............. 10,250 219,862 Rofin-Sinar Technologies, Inc.* ........................... 9,344 196,131 Sanmina-SCI Corp.* ................ 10,352 100,414 Pemstar, Inc.* .................... 20,076 71,471 Thermo Electron Corp.* ............ 2,126 46,134 Mettler Toledo International, Inc.* ............ 935 33,613 Varian, Inc.* ..................... 822 25,745 Solectron Corp.* .................. 4,360 25,506 Waters Corp.* ..................... 350 9,601 TTM Technologies, Inc.* ........... 403 5,755 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,030,323 ----------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- INTERNET SOFTWARE & SERVICES 1.5% Yahoo!, Inc.* ..................... 5,303 $ 187,620 AsiaInfo Holdings, Inc.* .......... 24,286 163,688 CMGI, Inc.* ....................... 94,346 146,236 Netegrity, Inc.* .................. 14,112 141,261 EarthLink, Inc.* .................. 6,087 50,096 VeriSign, Inc.* ................... 3,495 47,078 ValueClick, Inc.* ................. 2,066 17,375 HomeStore, Inc.* .................. 619 1,715 ----------- TOTAL INTERNET SOFTWARE & SERVICES 755,069 ----------- IT CONSULTING & SERVICES 1.2% Computer Horizons Corp.* .......................... 62,493 231,224 CheckFree Corp.* .................. 4,832 96,640 Safeguard Scientifics, Inc.* ........................... 25,232 85,789 Computer Sciences Corp.* .......................... 1,413 53,086 Keane, Inc.* ...................... 2,780 35,528 Electronic Data Systems Corp. ........................... 1,670 33,734 SunGard Data Systems, Inc.* ........................... 660 17,365 Automatic Data Processing, Inc. ................ 340 12,189 Affiliated Computer Services, Inc.-- Class A* ........................ 230 11,199 Sabre Holdings Corp. .............. 390 8,381 Ceridian Corp.* ................... 440 8,193 Concord EFS, Inc.* ................ 390 5,331 BISYS Group, Inc.* ................ 330 4,339 Fiserv, Inc.* ..................... 90 3,261 ----------- TOTAL IT CONSULTING & SERVICES 606,259 ----------- OFFICE ELECTRONICS 0.1% Gerber Scientific, Inc.* ........................... 3,996 28,372 Zebra Technologies Corp.--Class A* ................. 150 7,735 ----------- TOTAL OFFICE ELECTRONICS 36,107 ----------- TOTAL INFORMATION TECHNOLOGY 8,840,505 ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. -------------------------------------------------------------------------------- SEMI-ANNUAL REPORT 7 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- CONSUMER DISCRETIONARY 13.8% MEDIA 5.1% Viacom, Inc.--Class B ............. 8,029 $ 307,511 Metro-Goldwyn-Mayer, Inc.* ........................... 18,717 287,119 AOL Time Warner, Inc.* ............ 18,496 279,475 Liberty Media Corp.-- Class A* ........................ 26,801 267,206 Clear Channel Communications, Inc. ............ 6,789 260,019 Acme Communications, Inc.* ........................... 30,255 228,425 Fox Entertainment Group, Inc.-- Class A* ........................ 8,154 228,230 Pulitzer, Inc. .................... 3,916 204,024 Interactive Data Corp.* ........... 11,543 182,379 Walt Disney Co. ................... 6,297 127,010 General Motors Corp.-Hughes Electronics Corp.* .............. 4,171 59,687 Gannett Co., Inc. ................. 737 57,162 Univision Communications, Inc.--Class A* .................. 410 13,091 Lamar Advertising Co.* ............ 240 7,042 Cox Communications, Inc.--Class A* .................. 220 6,956 John Wiley & Sons, Inc.--Class A ................... 260 6,757 ----------- TOTAL MEDIA 2,522,093 ----------- HOUSEHOLD DURABLES 2.8% NVR, Inc.* ........................ 619 288,764 Ryland Group, Inc. ................ 3,350 244,919 KB Home ........................... 4,073 242,995 M.D.C. Holdings, Inc. ............. 2,386 128,844 Applica, Inc. ..................... 20,091 121,551 Lennar Corp.--Class A ............. 1,244 96,771 Centex Corp. ...................... 1,065 82,942 Brookfield Homes Corp. ............ 2,328 43,138 Kimball International, Inc.--Class B ................... 2,617 38,365 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Whirlpool Corp. ................... 538 $ 36,460 Russ Berrie & Co., Inc. ........... 876 29,512 Palm Harbor Homes, Inc.* ........................... 509 8,719 Stanley Works ..................... 170 5,018 ----------- TOTAL HOUSEHOLD DURABLES 1,367,998 ----------- SPECIALTY RETAIL 1.6% Claire's Stores, Inc. ............. 8,400 281,064 Rent-A-Center, Inc.* .............. 3,857 124,581 Stage Stores, Inc.* ............... 4,425 112,749 Gap, Inc. ......................... 4,836 82,792 Michaels Stores, Inc. ............. 865 35,257 Staples, Inc.* .................... 1,050 24,938 Bed Bath & Beyond, Inc.* ........................... 620 23,672 CarMax, Inc.* ..................... 665 21,719 Lowe's Cos., Inc. ................. 390 20,241 AutoZone, Inc.* ................... 160 14,325 Home Depot, Inc. .................. 425 13,536 Tiffany & Co. ..................... 320 11,946 RadioShack Corp. .................. 420 11,932 Ross Stores, Inc. ................. 200 9,272 Limited Brands, Inc. .............. 340 5,127 ----------- TOTAL SPECIALTY RETAIL 793,151 ----------- HOTELS RESTAURANTS & LEISURE 1.3% Lone Star Steakhouse & Saloon, Inc. .................. 10,866 227,100 Starbucks Corp.* .................. 4,264 122,803 CBRL Group, Inc. .................. 3,389 120,242 Dave & Buster's, Inc.* ............ 9,107 93,802 Landry's Restaurants, Inc. ............................ 1,250 25,750 McDonald's Corp. .................. 680 16,007 Marriott International, Inc.--Class A ................... 360 15,491 La Quinta Corp.* .................. 1,480 9,220 Gaylord Entertainment Co.* ............................ 340 8,347 Brinker International, Inc.* ...... 240 8,006 Cheesecake Factory, Inc.* ........................... 180 6,511 ----------- TOTAL HOTELS RESTAURANTS & LEISURE 653,279 ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 8 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- AUTO COMPONENTS 0.9% BorgWarner, Inc. .................. 2,164 $ 146,827 ArvinMeritor, Inc. ................ 6,549 116,638 Autoliv, Inc. ..................... 3,721 112,263 Modine Manufacturing Co. ............................. 1,566 37,271 Tower Automotive, Inc.* ........... 3,763 16,933 ----------- TOTAL AUTO COMPONENTS 429,932 ----------- MULTILINE RETAIL 0.7% Saks, Inc.* ....................... 21,977 253,395 Big Lots, Inc.* ................... 2,380 37,628 Target Corp. ...................... 470 17,686 Family Dollar Stores, Inc. ........ 390 15,557 ----------- TOTAL MULTILINE RETAIL 324,266 ----------- TEXTILES & APPAREL 0.5% Warnaco Group, Inc.* .............. 8,785 136,958 Kellwood Co. ...................... 1,537 51,413 Movado Group, Inc. ................ 2,066 45,245 Coach, Inc.* ...................... 260 14,196 ----------- TOTAL TEXTILES & APPAREL 247,812 ----------- LEISURE EQUIPMENT & PRODUCTS 0.5% Hasbro, Inc. ...................... 12,806 239,216 Marvel Enterprises, Inc.* ......... 288 6,408 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 245,624 ----------- INTERNET & CATALOG RETAIL 0.3% Amazon.com, Inc.* ................. 2,605 125,978 eBay, Inc.* ....................... 230 12,307 Systemax, Inc.* ................... 100 664 ----------- TOTAL INTERNET & CATALOG RETAIL 138,949 ----------- DISTRIBUTORS 0.1% Handleman Co. ..................... 4,371 73,783 ----------- TOTAL DISTRIBUTORS 73,783 ----------- AUTOMOBILES 0.0% Harley-Davidson, Inc. ............. 190 9,158 ----------- TOTAL AUTOMOBILES 9,158 ----------- TOTAL CONSUMER DISCRETIONARY 6,806,045 ----------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- HEALTH CARE 12.8% HEALTH CARE PROVIDERS & SERVICES 5.8% PSS World Medical, Inc.* ........................... 30,632 $ 271,706 Sunrise Senior Living, Inc.* ........................... 10,011 262,589 Oxford Health Plans, Inc.* ........................... 6,307 260,542 Service Corp. International/US* ............... 56,687 259,060 UnitedHealth Group, Inc. ............................ 4,748 238,919 Health Net, Inc.* ................. 7,524 238,285 LifePoint Hospitals, Inc.* ........ 9,137 219,745 Hooper Holmes, Inc. ............... 27,902 185,548 Centene Corp.* .................... 6,060 184,163 Express Scripts, Inc.* ............ 2,066 126,336 Owens & Minor, Inc. ............... 5,150 124,115 Aetna, Inc. ....................... 1,134 69,208 PacifiCare Health Systems, Inc.* .................. 1,318 64,318 Quest Diagnostics, Inc.* ........................... 876 53,121 Dendrite International, Inc.* ........................... 3,360 51,038 WebMD Corp.* ...................... 4,811 42,914 AdvancePCS* ....................... 930 42,380 Coventry Health Care, Inc.* ........................... 617 32,541 Henry Schein, Inc.* ............... 572 32,432 Universal Health Services, Inc.--Class B* .................. 643 31,796 Triad Hospitals, Inc.* ............ 900 27,252 Cardinal Health, Inc. ............. 220 12,846 D & K Healthcare Resources, Inc. ................. 780 10,967 Lincare Holdings, Inc.* ........... 260 9,529 Humana, Inc.* ..................... 509 9,188 Medco Health Solutions, Inc.* ........................... 95 2,463 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 2,863,001 ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. SEMI-ANNUAL REPORT 9 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- PHARMACEUTICALS 3.0% Merck & Co., Inc. ................. 6,963 $ 352,467 Pfizer, Inc. ...................... 11,537 350,494 Watson Pharmaceuticals, Inc.* ........................... 6,033 251,516 ICN Pharmaceuticals, Inc. ............................ 10,494 180,077 Johnson & Johnson, Inc. ........... 1,845 91,364 Forest Laboratories, Inc.* ........ 1,439 74,037 Wyeth ............................. 1,520 70,072 aaiPharma, Inc.* .................. 3,153 53,948 Bristol-Myers Squibb Co. .......... 1,070 27,456 Eli Lilly & Co. ................... 440 26,136 Hi-Tech Pharmacal Co., Inc.* ........................... 286 6,712 CollaGenex Pharmaceuticals, Inc.* .......... 421 4,517 IVAX Corp.* ....................... 120 2,352 ----------- TOTAL PHARMACEUTICALS 1,491,148 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 3.0% Cytyc Corp.* ...................... 21,741 326,985 Becton, Dickinson & Co. ........... 6,671 240,956 Datascope Corp. ................... 6,851 210,600 Thoratec Corp.* ................... 12,096 205,511 Dade Behring Holdings, Inc.* ........................... 3,724 105,203 Interpore International, Inc.* ........................... 6,337 97,336 Beckman Coulter, Inc. ............. 865 39,392 Sybron Dental Specialties, Inc.* .............. 1,537 38,533 Osteotech, Inc.* .................. 4,515 36,978 Medtronic, Inc. ................... 590 27,683 DJ Orthopedics, Inc.* ............. 1,969 27,468 Biosite, Inc.* .................... 930 26,393 Zimmer Holdings, Inc.* ............ 400 22,040 Ventana Medical Systems, Inc.* ........................... 421 16,966 INAMED Corp.* ..................... 226 16,600 Baxter International, Inc. ........ 570 16,564 DENTSPLY International, Inc. ............................ 180 8,071 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Varian Medical Systems, Inc.* ........................... 110 $ 6,323 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,469,602 ----------- BIOTECHNOLOGY 1.0% Genencor International, Inc.* ........................... 8,692 136,377 Genzyme Corp.* .................... 2,431 112,434 Gen-Probe, Inc.* .................. 1,356 73,455 Chiron Corp.* ..................... 1,297 67,042 Invitrogen Corp.* ................. 817 47,378 Amgen, Inc.* ...................... 390 25,182 MedImmune, Inc.* .................. 590 19,476 ----------- TOTAL BIOTECHNOLOGY 481,344 ----------- TOTAL HEALTH CARE 6,305,095 ----------- INDUSTRIALS 10.9% MACHINERY 2.3% Parker Hannifin Corp. ............. 5,806 259,528 Danaher Corp. ..................... 3,340 246,692 Harsco Corp. ...................... 2,683 103,215 Albany International Corp.--Class A .................. 2,983 91,996 Caterpillar, Inc. ................. 982 67,601 EnPro Industries, Inc.* ........... 5,412 52,226 PACCAR, Inc. ...................... 687 51,312 Trinity Industries, Inc. .......... 1,857 48,003 SPS Technologies, Inc.* ........... 947 42,615 SPX Corp.* ........................ 876 39,665 Illinois Tool Works, Inc. ......... 550 36,443 Mueller Industries, Inc.* ........................... 1,297 33,009 Reliance Steel & Aluminum Co. .................... 1,309 29,047 Dover Corp. ....................... 350 12,379 Kennametal, Inc. .................. 270 10,098 Kaydon Corp. ...................... 300 7,122 Wabtec Corp. ...................... 410 6,499 Thomas Industries, Inc. ........... 200 5,704 ----------- TOTAL MACHINERY 1,143,154 ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 10 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES 1.8% Cendant Corp.* .................... 15,585 $ 291,284 University of Phoenix Online* ......................... 4,195 279,303 Coinstar, Inc.* ................... 6,921 93,087 NCO Group, Inc.* .................. 2,215 51,986 Equifax, Inc. ..................... 1,880 41,868 Career Education Corp.* ........... 922 41,767 Herman Miller, Inc. ............... 1,590 36,204 Ionics, Inc.* ..................... 1,087 26,588 Portfolio Recovery Associates, Inc.* ............... 982 24,962 Cornell Cos., Inc.* ............... 993 16,335 G & K Services, Inc.-- Class A ......................... 180 6,300 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 909,684 ----------- AEROSPACE & DEFENSE 1.7% Goodrich Corp. .................... 11,320 274,397 United Technologies Corp. ........................... 2,888 223,185 General Dynamics Corp. ............ 1,901 148,392 United Defense Industries, Inc.* ............... 3,603 102,289 L-3 Communications Holdings, Inc.* ................. 888 38,406 Aviall, Inc.* ..................... 1,270 15,723 Raytheon Co. ...................... 260 7,280 Alliant Techsystems, Inc.* ........ 90 4,324 ----------- TOTAL AEROSPACE & DEFENSE 813,996 ----------- INDUSTRIAL CONGLOMERATES 1.4% General Electric Co. .............. 13,329 397,337 ALLETE, Inc. ...................... 7,617 208,553 Standex International Corp. ........................... 1,472 35,770 3M Co. ............................ 340 23,484 United Capital Corp. .............. 200 3,600 ----------- TOTAL INDUSTRIAL CONGLOMERATES 668,744 ----------- ELECTRICAL EQUIPMENT 1.3% American Power Conversion Corp. ................ 12,086 207,154 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Rockwell Automation, Inc. ............................ 7,060 $ 185,325 AMETEK, Inc. ...................... 3,916 167,840 Regal-Beloit Corp. ................ 1,880 38,352 Thomas & Betts Corp.* ............. 2,242 35,535 ----------- TOTAL ELECTRICAL EQUIPMENT 634,206 ----------- ROAD & RAIL 1.0% Florida East Coast Industries, Inc. ................ 5,257 151,139 Genesee & Wyoming, Inc.--Class A* .................. 5,544 131,448 Swift Transportation Co., Inc.* ........................... 2,150 48,784 SCS Transportation, Inc.* ......... 3,223 48,667 Yellow Corp.* ..................... 1,367 40,846 Werner Enterprises, Inc. .......... 1,658 37,985 Union Pacific Corp. ............... 422 24,548 Norfolk Southern Corp. ............ 560 10,360 USF Corp. ......................... 220 6,923 Kansas City Southern* ............. 500 5,535 ----------- TOTAL ROAD & RAIL 506,235 ----------- CONSTRUCTION & ENGINEERING 0.9% Granite Construction, Inc. ............................ 13,469 251,601 Insituform Technologies, Inc.--Class A* .................. 9,187 163,161 Dycom Industries, Inc.* ........... 550 11,215 ----------- TOTAL CONSTRUCTION & ENGINEERING 425,977 ----------- AIRLINES 0.2% Southwest Airlines Co. ............ 2,464 43,613 Alaska Air Group, Inc.* ........... 1,401 38,976 Delta Air Lines, Inc. ............. 2,431 32,332 ----------- TOTAL AIRLINES 114,921 ----------- BUILDING PRODUCTS 0.2% USG Corp.* ........................ 3,306 56,995 Jacuzzi Brands, Inc.* ............. 8,332 51,658 Lennox International, Inc. ............................ 160 2,338 ----------- TOTAL BUILDING PRODUCTS 110,991 ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- MARINE 0.1% Alexander & Baldwin, Inc. ............................ 1,590 $ 44,647 ----------- TOTAL MARINE 44,647 ----------- AIR FREIGHT & COURIERS 0.0% Expeditors International of Washington, Inc. ............. 260 8,947 ----------- TOTAL AIR FREIGHT & COURIERS 8,947 ----------- TRADING COMPANIES & DISTRIBUTORS 0.0% W.W. Grainger, Inc. ............... 130 6,182 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 6,182 ----------- TOTAL INDUSTRIALS 5,387,684 ----------- CONSUMER STAPLES 6.0% FOOD PRODUCTS 2.7% Dean Foods Co.* ................... 8,763 271,916 Sara Lee Corp. .................... 13,705 251,624 Flowers Foods, Inc. ............... 7,814 178,159 ConAgra Foods, Inc. ............... 7,010 148,892 Sanderson Farms, Inc. ............. 4,401 138,456 M&F Worldwide Corp.* .............. 9,360 90,137 Central Garden & Pet Co.* ............................ 2,839 74,155 Alico, Inc. ....................... 1,537 43,051 Farmer Brothers Co. ............... 130 41,640 McCormick & Co., Inc. ............. 1,484 40,691 Tyson Foods, Inc.-- Class A ......................... 2,389 33,757 ----------- TOTAL FOOD PRODUCTS 1,312,478 ----------- TOBACCO 1.3% Altria Group, Inc. ................ 10,001 438,044 Loews Corp.--Carolina Group ........................... 9,382 215,786 ----------- TOTAL TOBACCO 653,830 ----------- FOOD & DRUG RETAILING 0.7% Wal-Mart Stores, Inc. ............. 2,470 137,949 Chronimed, Inc.* .................. 6,755 61,673 Costco Wholesale Corp.* ........... 1,484 46,123 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- CVS Corp. ......................... 1,448 $ 44,975 Kroger Co.* ....................... 2,301 41,119 Ruddick Corp. ..................... 1,647 25,594 Pantry, Inc.* ..................... 440 5,320 ----------- TOTAL FOOD & DRUG RETAILING 362,753 ----------- HOUSEHOLD PRODUCTS 0.7% Energizer Holdings, Inc.* ......... 6,002 220,694 Clorox Co. ........................ 1,460 66,970 Procter & Gamble Co. .............. 367 34,065 ----------- TOTAL HOUSEHOLD PRODUCTS 321,729 ----------- PERSONAL PRODUCTS 0.6% Gillette Co. ...................... 8,038 257,055 NBTY, Inc.* ....................... 617 14,407 Avon Products, Inc. ............... 160 10,329 Elizabeth Arden, Inc.* ............ 527 8,685 Estee Lauder Cos., Inc.-- Class A ......................... 250 8,525 Chattem, Inc.* .................... 509 7,065 USANA Health Sciences, Inc.* ........................... 100 4,825 ----------- TOTAL PERSONAL PRODUCTS 310,891 ----------- BEVERAGES 0.0% PepsiCo, Inc. ..................... 315 14,436 ----------- TOTAL BEVERAGES 14,436 ----------- TOTAL CONSUMER STAPLES 2,976,117 ----------- ENERGY 4.5% OIL & GAS 4.4% ConocoPhillips .................... 5,830 319,192 Exxon Mobil Corp. ................. 8,020 293,532 Pogo Producing Co. ................ 5,854 265,069 Westport Resources Corp.* .......................... 10,738 252,772 Nuevo Energy Co.* ................. 12,233 222,274 Chesapeake Energy Corp. ........................... 15,390 165,904 Petroleum Development Corp.* .......................... 7,010 83,980 Cimarex Energy Co.* ............... 3,752 73,539 *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 12 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Comstock Resources, Inc.* ........................... 4,857 $ 64,889 Murphy Oil Corp. .................. 971 57,046 Valero Energy Corp. ............... 1,214 46,460 Kerr-McGee Corp. .................. 982 43,836 Tom Brown, Inc.* .................. 1,578 40,555 EOG Resources, Inc. ............... 971 40,530 XTO Energy, Inc. .................. 1,840 38,622 Noble Energy, Inc. ................ 959 36,730 Western Gas Resources, Inc. ............................ 947 35,986 Devon Energy Corp. ................ 670 32,287 TransMontaigne, Inc.* ............. 3,960 23,602 Occidental Petroleum Corp. ........................... 509 17,932 Forest Oil Corp.* ................. 600 14,370 Pioneer Natural Resources Co.* .................. 280 7,129 Anadarko Petroleum Corp. ........................... 150 6,264 ----------- TOTAL OIL & GAS 2,182,500 ----------- ENERGY EQUIPMENT & SERVICES 0.1% Veritas DGC, Inc.* ................ 2,664 21,259 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 21,259 ----------- TOTAL ENERGY 2,203,759 ----------- MATERIALS 3.8% METALS & MINING 1.2% Newmont Mining Corp. .............. 7,044 275,350 Alcoa, Inc. ....................... 10,259 268,376 Nucor Corp. ....................... 690 31,657 Commercial Metals Co. ............. 1,635 30,035 Brush Engineered Materials, Inc.* ................ 700 7,175 ----------- TOTAL METALS & MINING 612,593 ----------- CONTAINERS & PACKAGING 1.0% Longview Fibre Co. ................ 27,665 270,287 Pactiv Corp.* ..................... 9,682 196,351 Greif, Inc.--Class A .............. 1,075 27,950 ----------- TOTAL CONTAINERS & PACKAGING 494,588 ----------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- CHEMICALS 0.7% Airgas, Inc. ...................... 7,914 $ 140,869 Praxair, Inc. ..................... 1,145 70,933 Valspar Corp. ..................... 701 32,702 Crompton Corp. .................... 4,240 24,634 Ecolab, Inc. ...................... 520 13,130 PPG Industries, Inc. .............. 210 10,966 Millennium Chemicals, Inc. ............................ 710 6,780 Engelhard Corp. ................... 240 6,641 Ethyl Corp.* ...................... 510 6,416 H.B. Fuller Co. ................... 230 5,582 Spartech Corp. .................... 250 5,325 Cytec Industries, Inc.* ........... 138 5,037 Dow Chemical Co. .................. 20 651 ----------- TOTAL CHEMICALS 329,666 ----------- CONSTRUCTION MATERIALS 0.5% Ameron International Corp. ........................... 6,220 205,322 Vulcan Materials Co. .............. 829 33,086 ----------- TOTAL CONSTRUCTION MATERIALS 238,408 ----------- PAPER & FOREST PRODUCTS 0.4% Rayonier, Inc. .................... 3,299 133,939 MeadWestvaco Corp. ................ 1,729 44,089 Weyerhaeuser Co. .................. 70 4,092 ----------- TOTAL PAPER & FOREST PRODUCTS 182,120 ----------- TOTAL MATERIALS 1,857,375 ----------- UTILITIES 3.3% ELECTRIC UTILITIES 2.3% Wisconsin Energy Corp. ............ 9,019 275,711 Entergy Corp. ..................... 4,482 242,700 NSTAR ............................. 4,652 220,970 CH Energy Group, Inc. ............. 3,081 135,564 PNM Resources, Inc. ............... 1,961 54,987 Public Service Enterprise Group, Inc. ..................... 1,134 47,628 Alliant Energy Corp. .............. 1,578 34,716 Black Hills Corp. ................. 1,122 34,625 *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- CenterPoint Energy, Inc. .......... 3,201 $ 29,353 PG&E Corp.* ....................... 710 16,969 Allegheny Energy, Inc.* ........... 1,800 16,452 Dominion Resources, Inc. /VA ........................ 230 14,237 WPS Resources Corp. ............... 240 9,888 Southern Co. ...................... 230 6,744 DPL, Inc. ......................... 340 5,831 Texas Genco Holdings, Inc. ............................ 118 2,808 ----------- TOTAL ELECTRIC UTILITIES 1,149,183 ----------- MULTI-UTILITIES 0.6% Avista Corp. ...................... 9,508 148,135 Energen Corp. ..................... 3,525 127,534 Westar Energy, Inc. ............... 490 9,041 ----------- TOTAL MULTI-UTILITIES 284,710 ----------- GAS UTILITIES 0.4% Southwestern Energy Co.* ............................ 3,488 63,133 Southern Union Co.* ............... 3,546 60,282 South Jersey Industries, Inc. ............................ 923 34,935 NUI Corp. ......................... 1,367 20,437 Southwest Gas Corp. ............... 340 7,718 ----------- TOTAL GAS UTILITIES 186,505 ----------- WATER UTILITIES 0.0% American States Water Co. ............................. 929 21,896 ----------- TOTAL WATER UTILITIES 21,896 ----------- TOTAL UTILITIES 1,642,294 ----------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- TELECOMMUNICATION SERVICES 2.0% DIVERSIFIED TELECOMMUNICATION SERVICES 1.7% Sprint Corp.-FON Group ........................... 18,038 $ 272,374 CenturyTel, Inc. .................. 7,653 259,360 Shenandoah Telecommunications Co. ............................. 5,315 204,893 AT&T Corp. ........................ 2,405 51,827 Citizens Communications Co.* ............................ 2,780 31,164 Verizon Communications, Inc. ............................ 120 3,893 WilTel Communications Group, Inc.* .................... 98 1,566 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 825,077 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.3% AT&T Wireless Services, Inc.* ........................... 9,359 76,557 Sprint Corp.-PCS Group* .......................... 11,296 64,726 SBA Communications Corp.* .......................... 880 2,816 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 144,099 ----------- TOTAL TELECOMMUNICATION SERVICES 969,176 ----------- TOTAL COMMON STOCKS (Cost $44,512,593) ................ 47,483,685 ----------- *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. 14 CORE EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET FACE VALUE AMOUNT (NOTE 1) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS 3.6% Repurchase Agreement (Note 5) 0.96% due 10/01/03 ................................. $392,530 $ 392,530 0.94% due 10/01/03 ................................. 27,943 27,943 0.93% due 10/01/03 ................................. 392,530 392,530 0.91% due 10/01/03 ................................. 392,530 392,530 0.90% due 10/01/03 ................................. 554,160 554,160 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $1,759,693) .................................. 1,759,693 ------------ TOTAL INVESTMENTS 100% (Cost $46,272,286) ................................. $49,243,378 ============ -------------------------------------------------------------------------------- UNREALIZED LOSS CONTRACTS (NOTE 1) -------------------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2003 S&P 500 Index Futures Contracts (Aggregate Market Value of Contract $255,000) ...... 1 $ (1,820) December 2003 Russell 2000 Index Futures Contracts (Aggregate Market Value of Contract $243,250) ...... 1 (2,755) December 2003 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $298,275) ..... 6 (7,908) ------------ (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $796,525) . $ (12,483) ============ See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 SECTOR ROTATION FUND SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- COMMON STOCKS 98.7% INFORMATION TECHNOLOGY 30.0% ELECTRONIC EQUIPMENT & INSTRUMENTS 8.0% Agilent Technologies, Inc.* ........................... 28,700 $ 634,557 Flextronics International Ltd.* ........................... 43,500 616,830 CDW Corp. ......................... 8,700 502,338 Jabil Circuit, Inc.* .............. 19,200 500,160 Sanmina-SCI Corp.* ................ 49,800 483,060 Thermo Electron Corp.* ............ 19,000 412,300 Solectron Corp.* .................. 70,400 411,840 Waters Corp.* ..................... 14,200 389,506 Molex, Inc. ....................... 13,600 388,824 Vishay Intertechnology, Inc.* ........................... 21,500 376,680 Celestica, Inc.* .................. 23,600 374,296 Symbol Technologies, Inc. ............................ 29,900 357,305 AVX Corp. ......................... 25,700 351,833 National Instruments Corp. ........................... 8,000 322,000 Amphenol Corp.-- Class A* ........................ 4,700 244,635 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 6,366,164 ----------- COMMUNICATIONS EQUIPMENT 7.4% Cisco Systems, Inc.* .............. 59,000 1,152,860 Nokia OYJ--SP ADR ................. 52,000 811,200 QUALCOMM, Inc. .................... 13,800 574,632 Motorola, Inc. .................... 45,500 544,635 Nortel Networks Corp.* ............ 99,900 409,590 Alcatel SA--SP ADR* ............... 30,600 361,998 Corning, Inc.* .................... 38,100 358,902 Lucent Technologies, Inc.* ........................... 130,700 282,312 QLogic Corp.* ..................... 5,100 239,751 JDS Uniphase Corp.* ............... 58,200 209,520 Avaya, Inc.* ...................... 18,500 201,650 Juniper Networks, Inc.* ........... 13,500 201,420 MARKET VALUE SHARES (NOTE 1) ---------------------------------------------------------- Scientific-Atlanta, Inc. .......... 6,300 $196,245 UTStarcom, Inc.* .................. 5,900 187,679 Tellabs, Inc.* .................... 23,000 156,170 ----------- TOTAL COMMUNICATIONS EQUIPMENT 5,888,564 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS 7.4% Intel Corp. ....................... 42,640 1,173,027 Texas Instruments, Inc. ........... 23,200 528,960 Taiwan Semiconductor Manufacturing Co. Ltd.--SP ADR* ................... 45,420 491,899 Applied Materials, Inc.* .......... 24,420 442,979 STMicroelectronics NV ............. 17,300 416,065 Analog Devices, Inc.* ............. 8,860 336,857 United Microelectronics Corp.--SP ADR* .................. 72,100 325,171 Maxim Integrated Products, Inc. .................. 7,840 309,680 Linear Technology Corp. ........... 8,180 292,926 KLA-Tencor Corp.* ................. 5,520 283,728 Xilinx, Inc.* ..................... 9,640 274,836 Micron Technology, Inc.* .......... 19,640 263,569 Infineon Technologies AG--SP ADR* ..................... 19,980 257,542 Altera Corp.* ..................... 11,500 217,350 ASML Holding NV* .................. 15,280 200,626 ----------- TOTAL SEMICONDUCTOR EQUIPMENT & PRODUCTS 5,815,215 ----------- INTERNET SOFTWARE & SERVICES 7.2% Yahoo!, Inc.* ..................... 42,800 1,514,264 Overture Services, Inc.* .......... 24,100 638,409 VeriSign, Inc.* ................... 42,800 576,516 WebEx Communications, Inc.* ........................... 23,800 451,962 United Online, Inc.* .............. 12,000 416,640 DoubleClick, Inc.* ................ 35,500 382,335 EarthLink, Inc.* .................. 44,800 368,704 RealNetworks, Inc.* ............... 50,800 332,740 Internet Security Systems, Inc.* ........................... 20,900 261,250 Open Text Corp.* .................. 7,600 259,388 *NON-INCOME PRODUCING SECURITIES ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 16 SECTOR ROTATION FUND SCHEDULE OF INVESTMENTS(UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Ariba, Inc.* ............................... 82,700 $ 251,408 PEC Solutions, Inc.* ....................... 16,300 240,588 ------------ TOTAL INTERNET SOFTWARE & SERVICES 5,694,204 ------------ TOTAL INFORMATION TECHNOLOGY 23,764,147 ------------ CONSUMER DISCRETIONARY 24.1% INTERNET & CATALOG RETAIL 8.5% eBay, Inc.* ................................ 40,380 2,160,734 Amazon.com, Inc.* .......................... 36,350 1,757,886 InterActiveCorp* ........................... 43,383 1,433,808 Priceline.com, Inc.* ....................... 12,506 362,549 Netflix, Inc.* ............................. 10,720 360,299 Insight Enterprises, Inc.* ................. 17,600 267,872 ValueVision Media, Inc.--Class A* ........................... 12,970 206,353 Alloy, Inc.* ............................... 15,880 88,928 J. Jill Group, Inc.* ....................... 6,160 70,840 ------------ TOTAL INTERNET & CATALOG RETAIL 6,709,269 ------------ HOTELS RESTAURANTS & LEISURE 8.0% McDonald's Corp. ........................... 31,100 732,094 Carnival Corp. ............................. 19,900 654,511 Starbucks Corp.* ........................... 19,000 547,200 Marriott International, Inc.--Class A ............................ 12,200 524,966 International Game Technology, Inc. ......................... 16,200 456,030 Starwood Hotels & Resorts Worldwide, Inc. ..................................... 13,000 452,400 Yum! Brands, Inc.* ......................... 14,700 435,414 Hilton Hotels Corp. ........................ 25,500 413,610 Royal Caribbean Cruises Ltd. ..................................... 13,600 382,296 Harrah's Entertainment, Inc. ..................................... 7,800 328,458 MGM Mirage, Inc.* .......................... 8,300 303,365 Wendy's International, Inc. ..................................... 8,800 284,240 Darden Restaurants, Inc. ................... 14,500 275,500 MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Brinker International, Inc.* .................................... 7,800 $ 260,208 Outback Steakhouse, Inc. ................... 6,500 246,155 ------------ TOTAL HOTELS RESTAURANTS & LEISURE 6,296,447 ------------ AUTO COMPONENTS 7.6% Johnson Controls, Inc. ..................... 8,500 804,100 Magna International, Inc.--Class A ............................ 10,300 743,145 Delphi Corp. ............................... 60,300 545,715 Lear Corp.* ................................ 10,000 526,400 Autoliv, Inc. .............................. 13,600 410,312 Gentex Corp.* .............................. 11,500 400,660 Dana Corp. ................................. 24,900 384,207 BorgWarner, Inc. ........................... 5,400 366,390 American Axle & Manufacturing Holdings, Inc.* .......................... 11,500 340,170 Superior Industries International, Inc. ...................... 7,200 291,960 Cooper Tire & Rubber Co. ...................................... 16,800 266,616 ArvinMeritor, Inc. ......................... 14,800 263,588 Modine Manufacturing Co. ...................................... 9,900 235,620 Visteon Corp. .............................. 34,700 229,020 Goodyear Tire & Rubber Co. ...................................... 31,500 206,955 ------------ TOTAL AUTO COMPONENTS 6,014,858 ------------ TOTAL CONSUMER DISCRETIONARY 19,020,574 ------------ FINANCIALS 14.7% DIVERSIFIED FINANCIALS 13.0% American Express Co. ....................... 38,800 1,748,328 MBNA Corp. ................................. 53,300 1,215,240 SLM Corp. .................................. 24,500 954,520 Capital One Financial Corp. .................................... 14,800 844,192 J.P. Morgan Chase & Co. .................... 20,500 703,765 Morgan Stanley ............................. 12,700 640,842 *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 SECTOR ROTATION FUND SCHEDULE OF INVESTMENTS(UNAUDITED) (CONTINUED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. ..................................... 10,800 $ 578,124 Goldman Sachs Group, Inc. ..................................... 6,500 545,350 Providian Financial Corp.* ................................... 38,200 450,378 State Street Corp. ......................... 7,300 328,500 Charles Schwab Corp. ....................... 27,100 322,761 Lehman Brothers Holdings, Inc. ........................... 4,600 317,768 Student Loan Corp. ......................... 2,600 310,258 AmeriCredit Corp.* ......................... 28,500 293,550 Franklin Resources, Inc. ................... 6,600 291,786 Bear Stearns Cos., Inc. .................... 2,900 216,920 Northern Trust Corp. ....................... 5,000 212,200 Legg Mason, Inc. ........................... 2,200 158,840 T. Rowe Price Group, Inc. ..................................... 3,800 156,788 ------------ TOTAL DIVERSIFIED FINANCIALS 10,290,110 ------------ BANKS 1.7% UBS AG ..................................... 12,100 680,383 Bank of New York Co., Inc. ..................................... 12,900 375,519 Mellon Financial Corp. ..................... 10,300 310,442 ------------ TOTAL BANKS 1,366,344 ------------ TOTAL FINANCIALS 11,656,454 ------------ MATERIALS 14.4% METALS & MINING 7.2% Alcoa, Inc. ................................ 26,000 680,160 Newmont Mining Corp. ....................... 14,000 547,260 POSCO--SP ADR .............................. 17,500 500,500 Alcan, Inc. ................................ 12,800 489,728 Barrick Gold Corp. ......................... 24,200 455,686 AngloGold Ltd.--SP ADR ...................................... 10,500 395,850 Gold Fields Ltd.--SP ADR ...................................... 25,200 357,084 Nucor Corp. ................................ 7,300 334,924 Placer Dome, Inc. .......................... 24,200 332,750 Phelps Dodge Corp.* ........................ 7,100 332,280 MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc.-- Class B .................................. 9,700 $ 321,070 Inco Ltd.* ................................. 11,100 308,025 Harmony Gold Mining Co. Ltd.--SP ADR ......................... 16,000 231,840 Goldcorp, Inc. ............................. 15,600 217,776 Kinross Gold Corp.* ........................ 27,700 206,642 ------------ TOTAL METALS & MINING 5,711,575 ------------ CONSTRUCTION MATERIALS 7.2% Cemex SA de CV--SP ADR ...................................... 67,800 1,691,610 Vulcan Materials Co. ....................... 29,800 1,189,318 Lafarge North America, Inc. ..................................... 26,600 925,680 Martin Marietta Materials, Inc. ..................................... 21,800 794,610 Florida Rock Industries, Inc. ..................................... 15,300 758,880 Texas Industries, Inc. ..................... 13,592 334,363 ------------ TOTAL CONSTRUCTION MATERIALS 5,694,461 ------------ TOTAL MATERIALS 11,406,036 ------------ HEALTH CARE 8.1% BIOTECHNOLOGY 8.1% Genentech, Inc.* ........................... 15,000 1,202,100 Amgen, Inc.* ............................... 18,400 1,188,088 Gilead Sciences, Inc.* ..................... 8,300 464,219 Chiron Corp.* .............................. 8,600 444,534 Genzyme Corp.* ............................. 9,300 430,125 MedImmune, Inc.* ........................... 10,800 356,508 IDEC Pharmaceuticals Corp.* ................................... 9,300 308,295 Celgene Corp.* ............................. 7,000 303,310 Invitrogen Corp.* .......................... 5,200 301,548 Millennium Pharmaceuticals, Inc.* ................... 18,300 281,637 Biogen, Inc.* .............................. 7,200 275,256 Amylin Pharmaceuticals, Inc.* .................................... 8,900 251,336 Cephalon, Inc.* ............................ 4,900 225,008 *NON-INCOME PRODUCING SECURITIES ADR--AMERICAN DEPOSITORY RECEIPT See Notes to Financial Statements. 18 SECTOR ROTATION FUND SCHEDULE OF INVESTMENTS(UNAUDITED) (CONCLUDED) September 30, 2003 -------------------------------------------------------------------------------- MARKET VALUE SHARES (NOTE 1) -------------------------------------------------------------------------------- Affymetrix, Inc.* .......................... 9,200 $ 193,108 Neurocrine Biosciences, Inc.* .................................... 3,200 158,464 ------------ TOTAL BIOTECHNOLOGY 6,383,536 ------------ TOTAL HEALTH CARE 6,383,536 ------------ INDUSTRIALS 7.4% AIRLINES 7.4% Southwest Airlines Co. ..................... 92,200 1,631,940 JetBlue Airways Corp.* ..................... 17,000 1,036,490 Delta Air Lines, Inc. ...................... 38,900 517,370 AMR Corp.* ................................. 40,000 458,000 Alaska Air Group, Inc.* .................... 16,100 447,902 Continental Airlines, Inc.--Class B* ....... 26,200 434,396 SkyWest, Inc. .............................. 22,700 393,164 ExpressJet Holdings, Inc.* ................. 26,600 367,080 Northwest Airlines Corp.* .................. 35,072 340,198 Atlantic Coast Airlines Holdings, Inc.* .... 24,400 207,644 ------------ TOTAL AIRLINES 5,834,184 ------------ TOTAL INDUSTRIALS 5,834,184 ------------ TOTAL COMMON STOCKS (Cost $72,248,643) ......................... 78,064,931 ------------ FACE AMOUNT --------- REPURCHASE AGREEMENTS 1.3% Repurchase Agreement (Note 5) 0.96% due 10/01/03 ......................... $235,887 235,887 0.94% due 10/01/03 ......................... 16,792 16,792 0.93% due 10/01/03 ......................... 235,887 235,887 0.91% due 10/01/03 ......................... 235,887 235,887 0.90% due 10/01/03 ......................... 333,017 333,017 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $1,057,470) .......................... 1,057,470 ------------ TOTAL INVESTMENTS 100% (Cost $73,306,113) ......................... $79,122,401 ============ *NON-INCOME PRODUCING SECURITIES See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2003 --------------------------------------------------------------------------------
CORE SECTOR EQUITY ROTATION FUND FUND ----------- ----------- ASSETS Securities at Value* (Notes 1, 2 and 5) ............... $49,243,378 $79,122,401 Segregated Cash with Broker ........................... 85,050 -- Receivable for Shares Purchased ....................... 241,909 68,064 Investment Income Receivable (Note 1) ................. 38,379 26,498 ----------- ----------- TOTAL ASSETS ........................................ 49,608,716 79,216,963 ----------- ----------- LIABILITIES Payable for Futures Contracts Settlement (Note 1) ..... 18,372 -- Payable for Securities Purchased (Note 1) ............. 981,576 -- Liability for Shares Redeemed ......................... 190,288 1,001,017 Investment Advisory Fee Payable (Note 3) .............. 27,165 60,993 Transfer Agent Fee Payable (Note 3) ................... 9,702 16,942 Distribution and Service Fee Payable (Note 3) ......... 3,628 6,917 Portfolio Accounting Fee Payable (Note 3) ............. 3,881 6,777 Custody Fees Payable .................................. 1,281 2,480 Other Liabilities ..................................... 5,180 9,090 ----------- ----------- TOTAL LIABILITIES ................................... 1,241,073 1,104,216 ----------- ----------- NET ASSETS (NOTE 8) ................................... $48,367,643 $78,112,747 =========== =========== H CLASS: Net Assets ............................................ $32,627,770 $49,511,354 Shares Outstanding .................................... 2,639,666 5,361,153 Net Asset Value Per Share ............................. $12.36 $9.24 C CLASS: Net Assets ............................................ $15,739,873 $28,601,393 Shares Outstanding .................................... 1,283,976 3,130,972 Net Asset Value Per Share ............................. $12.26 $9.13
* THE COST OF SECURITIES AT VALUE IS $46,272,286 AND $73,306,113, RESPECTIVELY. See Notes to Financial Statements. 20
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2003 ------------------------------------------------------------------------------------------------- CORE SECTOR EQUITY ROTATION FUND FUND ---------- ----------- INVESTMENT INCOME Interest (Note 1) ............................................. $ 3,429 $ 8,490 Dividends, Net of Foreign Tax Withheld* (Note 1) .............. 281,737 337,755 ---------- ----------- Total Income ................................................ 285,166 346,245 ---------- ----------- EXPENSES Advisory Fees (Note 3) ........................................ 143,558 302,726 Transfer Agent Fees (Note 3) .................................. 45,628 84,091 Distribution & Service Fees: (Note 3) H Class ..................................................... 31,212 54,818 C Class ..................................................... 57,667 117,089 Accounting Fees (Note 3) ...................................... 18,251 33,636 Trustees' Fees ................................................ 524 1,357 Custodian Fees ................................................ 6,418 11,858 Miscellaneous ................................................. 17,075 30,585 ---------- ----------- Total Expenses .............................................. 320,333 636,160 ---------- ----------- Net Investment Loss ............................................. (35,167) (289,915) ---------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities ......................................... 3,116,805 5,708,464 Futures Contracts ............................................. (964) -- ---------- ----------- Total Net Realized Gain ..................................... 3,115,841 5,708,464 ---------- ----------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities ......................................... 2,834,133 5,696,529 Futures Contracts ............................................. (12,483) -- ---------- ----------- Net Change in Unrealized Appreciation ......................... 2,821,650 5,696,529 ---------- ----------- Net Gain on Investments ..................................... 5,937,491 11,404,993 ---------- ----------- NET INCREASE IN NET ASSETS FROM OPERATIONS ...................... $5,902,324 $11,115,078 ========== ===========
* NET OF FOREIGN TAX WITHHELD OF $25 AND $4,165, RESPECTIVELY. See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
CORE EQUITY FUND ----------------------------------- PERIOD PERIOD ENDED ENDED SEPTEMBER 30, MARCH 31, 2003+ 2003* ------------- ----------- FROM OPERATIONS Net Investment Income (Loss) ...................................... $ (35,167) $ 5,530 Net Realized Gain (Loss) on Investments and Futures ............... 3,115,841 (1,235,184) Net Change in Unrealized Appreciation on Investments and Futures ......................................... 2,821,650 136,959 ----------- ----------- Net Increase (Decrease) in Net Assets from Operations ............. 5,902,324 (1,092,695) ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) .............................. -- -- NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 7) ............................................. 18,178,312 25,379,702 ----------- ----------- Net Increase in Net Assets ........................................ 24,080,636 24,287,007 NET ASSETS--BEGINNING OF PERIOD ..................................... 24,287,007 -- ----------- ----------- NET ASSETS--END OF PERIOD (NOTE 8) .................................. $48,367,643 $24,287,007 =========== ===========
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 23, 2002. + UNAUDITED. See Notes to Financial Statements. 22 STATEMENTS OF CHANGES IN NET ASSETS(CONCLUDED) --------------------------------------------------------------------------------
SECTOR ROTATION FUND ----------------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2003+ 2003 ------------- ------------ FROM OPERATIONS Net Investment Loss ............................................. $ (289,915) $ (168,458) Net Realized Gain (Loss) on Investments ......................... 5,708,464 (24,197,329) Net Change in Unrealized Appreciation on Investments ................................................ 5,696,529 73,823 ----------- ------------ Net Increase (Decrease) in Net Assets from Operations ............................................... 11,115,078 (24,291,964) ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) ............................ -- -- NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS (NOTE 7) ........................................... 14,614,138 53,470,374 ----------- ------------ Net Increase in Net Assets ...................................... 25,729,216 29,178,410 NET ASSETS--BEGINNING OF PERIOD ................................... 52,383,531 23,205,121 ----------- ------------ NET ASSETS--END OF PERIOD (NOTE 8) ................................ $78,112,747 $ 52,383,531 =========== ============
+ UNAUDITED. See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 -------------------------------------------------------------------------------- This page intentionally left blank. 24 and
SEMI-ANNUAL REPORT 25 FINANCIAL HIGHLIGHTS ---------------------------------------------------------------------------------------------------------------------------------- H CLASS H CLASS ------------------------ ------------------------------------------ CORE SECTOR EQUITY ROTATION FUND FUND ------------------------ ------------------------------------------ PERIOD PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2003++ 2003* 2003++ 2003 2002* ------------- --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ................................ $10.15 $10.00 $7.58 $9.99 $10.00 -------- -------- -------- -------- -------- Net Investment Income (Loss)+ .............. -- .01 (.03) (.01) -- Net Realized and Unrealized Gains (Losses) on Securities ................... 2.21 .14 1.69 (2.40) (.01) -------- -------- -------- -------- -------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ................ 2.21 .15 1.66 (2.41) (.01) DISTRIBUTIONS TO SHAREHOLDERS .............. -- -- -- -- -- -------- -------- -------- -------- -------- Net Increase (Decrease) in Net Asset Value .......................... 2.21 .15 1.66 (2.41) (.01) -------- -------- -------- -------- -------- NET ASSET VALUE--END OF PERIOD ............. $12.36 $10.15 $9.24 $7.58 $9.99 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN .................... 21.77% 1.50% 21.90% (24.12)% (0.10)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ............................. 1.52%** 1.67%** 1.63%** 1.68% 1.69%** Net Expenses ............................... 1.52%** 1.67%** 1.63%** 1.68% 1.69%** Net Investment Income (Loss) ............... 0.05%** 0.22%** (0.60)%** (0.08)% (1.13)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ................. 139% 123% 202% 451% -- Net Assets, End of Period (000's omitted) .......................... $32,628 $18,516 $49,511 $34,845 $18,055
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 22, 2002--SECTOR ROTATION FUND; SEPTEMBER 23, 2002--CORE EQUITY FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED. See Notes to Financial Statements.
26 and SEMI-ANNUAL REPORT 27 FINANCIAL HIGHLIGHTS(CONCLUDED) ----------------------------------------------------------------------------------------------------------------------------------- C CLASS C CLASS ------------------------ ------------------------------------------ CORE SECTOR EQUITY ROTATION FUND FUND ------------------------ ------------------------------------------ PERIOD PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, 2003++ 2003* 2003++ 2003 2002* ------------- --------- ------------- --------- --------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE--BEGINNING OF PERIOD ................................ $10.11 $10.00 $7.53 $9.99 $10.00 -------- -------- -------- -------- -------- Net Investment Loss+ ....................... (.04) (.03) (.06) (.07) -- Net Realized and Unrealized Gains (Losses) on Securities ................... 2.19 .14 1.66 (2.39) (.01) -------- -------- -------- -------- -------- Net Increase (Decrease) in Net Asset Value Resulting from Operations ................ 2.15 .11 1.60 (2.46) (.01) DISTRIBUTIONS TO SHAREHOLDERS .............. -- -- -- -- -- -------- -------- -------- -------- -------- Net Increase (Decrease) in Net Asset Value .......................... 2.15 .11 1.60 (2.46) (.01) -------- -------- -------- -------- -------- NET ASSET VALUE--END OF PERIOD ................................... $12.26 $10.11 $9.13 $7.53 $9.99 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN .................... 21.27% 1.10% 21.25% (24.62)% (0.10)% RATIOS TO AVERAGE NET ASSETS: Gross Expenses ............................. 2.26%** 2.41%** 2.38%** 2.44% 2.44%** Net Expenses ............................... 2.26%** 2.41%** 2.38%** 2.44% 2.44%** Net Investment Loss ........................ (0.71)%** (0.48)%** (1.35)%** (0.83)% (1.86)%** SUPPLEMENTARY DATA: Portfolio Turnover Rate*** ................. 139% 123% 202% 451% -- Net Assets, End of Period (000's omitted) .......................... $15,740 $5,771 $28,601 $17,538 $5,150
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 22, 2002--SECTOR ROTATION FUND; SEPTEMBER 23, 2002--CORE EQUITY FUND. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD. ++ UNAUDITED. See Notes to Financial Statements. 28 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Rydex Series Funds (the "Trust") are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as a non-diversified, open-ended investment company, and are authorized to issue an unlimited number of shares. The Trust offers five separate classes of shares, Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares, and Institutional Class Shares. Sales of shares of each Class are made without a sales charge at the net asset value per share. C Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12 months of purchase. At September 30, 2003, the Trust consisted of thirty-four separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen Sector Funds, and two Strategic Funds. This report covers the Strategic Funds (the "Funds"), while the Money Market and Benchmark Funds and the Sector Funds are contained in separate reports. As of September 30, 2003, only H Class and C Class Shares had been issued in the Strategic Funds. The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America and are consistently followed by the Trust. A. Equity securities listed on an exchange (New York Stock Exchange or American Stock Exchange) are valued at the last quoted sales price as of close of business on the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the valuation date. Equity securities listed on the Nasdaq market system are valued at the Nasdaq Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation date. Listed options held by the Trust are valued at their last bid price. Over-the-counter options held by the Trust are valued using the average bid price obtained from one or more security dealers. The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the last quoted sales price as of 4:00 p.m. on the valuation date. Short-term securities, if any, are valued at amortized cost, which approximates market value. Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under direction of the Board of Trustees or by the Advisor using methods established or ratified by the Board of Trustees. B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. C. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees relating to the SEMI-ANNUAL REPORT 29 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- H Class Shares and service and distribution fees related to C Class Shares, are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets value of each Fund included in the Trust. D. Distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income and net realized capital gains are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for items such as deferral of wash sales and post-October losses and regulated futures contracts and options. E. Each Strategic Fund seeks long-term capital appreciation and seeks to respond to the dynamically changing economy by moving its investments among different sectors or industries. The Funds may also purchase American Depository Receipts ("ADRs") and U.S. Government securities, enter into repurchase agreements, and engage in futures, options and equity swap transactions. The risks inherent in the use of futures, options and swaps agreements include 1) adverse changes in the value of such instruments; 2) imperfect correlation between the price of the instruments and movements in the price of the underlying securities; 3) the possible absence of a liquid secondary market for any particular instrument at any time; and 4) the potential of counterparty default. F. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 2. FINANCIAL INSTRUMENTS As part of its investment strategy, the Trust may utilize a variety of derivative instruments, including options, futures, and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. The risk associated with purchasing options is limited to the premium originally paid. Options written by a fund involve, to varying degrees, risk of loss in excess of the option value reflected in the Statement of Assets and Liabilities. The risk in writing a covered call option is that a fund may forego the opportunity for profit if the market price of the underlying security increases and the option is exercised. The risk in writing a covered put option is that a fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is the risk that a fund may not be able to enter into a closing transaction because of an illiquid secondary market or, for over-the-counter options, because of the counterparty's inability to perform. The Trust has 30 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- established strict counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. There are several risks in connection with the use of futures contracts. Futures contracts involve, to varying degrees, risk of loss in excess of amounts reflected in the financial statements. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a fund may not be able to enter into a closing transaction because of an illiquid secondary market. The use of equity swaps involves risks that are different from those associated with ordinary portfolio securities transactions. Swap agreements may be considered to be illiquid. Although a fund will not enter into any swap agreement unless the Advisor believes that the other party to the transaction is creditworthy, a fund does bear the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of the agreement counterparty. The Trust has established strict counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. In conjunction with the use of options, futures, options on futures and swap agreements, as well as short sales of securities, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash segregated at the custodian bank, or the repurchase agreements allocated to each Fund. The risks inherent in the use of options, futures contracts, options on futures contracts, and swap agreements include 1) adverse changes in the value of such instruments; 2) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; 3) the possible absence of a liquid secondary market for any particular instrument at any time; and 4) the potential of counterparty default. 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of an investment advisory contract, the Trust pays Rydex Global Advisors (the "Advisor"), an affiliated entity, investment advisory fees calculated at an annualized rate of 0.90% of the average daily net assets of each of the Strategic Funds. Effective July 1, 2003, the Trustees voted to reduce Core Equity's basic management fee to 0.70% of the Fund's average daily net assets and implement a performance adjustment allowing the basic fee to increase to a maximum of 0.90% or decrease to a minimum of 0.50%, depending on the investment performance of the Fund relative to the Russell 3000(R) Index (the "Index"). The performance comparison will be made for a rolling 12-month period, with performance adjustments made at the end of each month beginning June 30, 2004. Until June 30, 2004, the effective management fee will remain constant at 0.70% of the Fund's SEMI-ANNUAL REPORT 31 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- average daily net assets. Certain officers and trustees of the Trust are also officers and directors of Rydex Global Advisors. Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides transfer agent services to the Trust for fees calculated at an annualized rate of 0.25% of the average daily net assets of each of the Strategic Funds. The Servicer also provides accounting services to the Trust calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each of the Strategic Funds. Certain officers and trustees of the Trust are also officers and directors of Rydex Fund Services, Inc. The Trust has adopted a Distribution Plan (the "Plan") applicable to its H Class Shares, for which Rydex Distributors, Inc. (the "Distributor"), an affiliated entity, and other firms that provide distribution and/or shareholder services ("Service Providers") may receive compensation. If a Service Provider provides distribution services, the Trust will pay fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its fees. The Trust has adopted a separate Distribution and Shareholder Services Plan (the "C Class Plan") applicable to its C Class Shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds' C Class Shares average daily net assets. The annual 0.25% service fee compensates your financial advisor for providing on-going services to you. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record. The annual 0.75% distribution fee reimburses the Distributor for paying your financial advisor an on-going sales commission. The Distributor advances the first year's service and distribution fees to your financial advisor. Certain officers and trustees of the Trust are also officers and directors of Rydex Distributors, Inc. 4. FEDERAL INCOME TAX INFORMATION The Trust intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income to its shareholders. Therefore, no Federal income tax provision is required. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for futures and options transactions, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations. 32 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Permanent book and tax basis differences, if any, relating to shareholder distributions will result in reclassifications to paid-in capital. This includes the utilization of earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes, net operating losses not utilized during the current year, and differences in the treatment of certain notional principal contracts (e.g. financial futures contracts). These reclassifications have no effect on net assets or net asset values per share. Any taxable gain remaining at fiscal year end is distributed in the following year. TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS At September 30, 2003, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:
TAX TAX NET TAX UNREALIZED UNREALIZED UNREALIZED FUND COST GAIN LOSS GAIN ------ ----------- ---------- ----------- ---------- Core Equity Fund ................ $45,540,828 $4,272,981 $ (570,431) $3,702,550 Sector Rotation Fund ............ 72,527,770 8,384,250 (1,789,619) 6,594,631
5. REPURCHASE AGREEMENTS The Trust transfers uninvested cash balances into a single joint account, along with uninvested cash of the Rydex Dynamic Funds, a separate Trust, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury or U.S. Government Agencies. The collateral is in the possession of the Trusts' custodians and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreements at maturity. The repurchase agreements that were executed by the joint account and outstanding as of September 30, 2003, are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE --------------- ------------------ ------------ ------------ -------------- Salomon Smith Barney, Inc. ....... 0.90% due 10/1/03 $240,000,000 $240,000,000 $240,005,918 U.S. Bank NA ..................... 0.96% due 10/1/03 170,000,000 170,000,000 170,004,471 Paine Webber, Inc. ............... 0.93% due 10/1/03 170,000,000 170,000,000 170,004,332 Morgan Stanley, Inc. ............. 0.91% due 10/1/03 170,000,000 170,000,000 170,004,238 Lehman Brothers, Inc. ............ 0.94% due 10/1/03 12,101,668 12,101,668 12,101,980 ------------ ------------ $762,101,668 $762,120,939 ============ ============
SEMI-ANNUAL REPORT 33 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- As of September 30, 2003, the collateral for the repurchase agreements in the joint account was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE --------------- --------------- ------------ ------------ U. S. Treasury Bonds ............. 3.875% - 5.375% $268,291,421 $312,444,509 U. S. Treasury Notes ............. 0.000% - 7.000% 257,405,610 293,257,361 Ginnie Mae ....................... 4.500% - 5.000% 174,032,279 173,848,577 ------------ $779,550,447 ============
In the event of counterparty default, the Trust has the right to collect the collateral to offset losses incurred. There is potential loss to the Trust in the event the Trust is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Trust seeks to assert its rights. The Trust's investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the credit worthiness of those banks and dealers with which the Trust enters into repurchase agreements to evaluate potential risks. 6. SECURITIES TRANSACTIONS During the period ended September 30, 2003, purchases and sales of investment securities, excluding short-term and temporary cash investments, were: CORE SECTOR EQUITY ROTATION FUND FUND ----------- ------------ Purchases ............................... $67,445,856 $145,771,802 Sales ................................... $49,928,973 $129,873,034 7. SHARE TRANSACTIONS The Trust is authorized to distribute an unlimited number of shares. Transactions in shares for the period ended September 30, 2003 were:
H CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ----------- ------------ Shares Purchased ................................... 3,718,233 3,611,615 Purchased through Dividend Reinvestment ............ -- -- ----------- ------------ Total Purchased .................................... 3,718,233 3,611,615 Shares Redeemed .................................... (2,902,166) (2,845,961) ----------- ------------ Net Shares Purchased ............................... 816,067 765,654 =========== ============ C CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ----------- ------------ Shares Purchased ................................... 849,691 1,261,809 Purchased through Dividend Reinvestment ............ -- -- ----------- ------------ Total Purchased .................................... 849,691 1,261,809 Shares Redeemed .................................... (136,431) (460,138) ----------- ------------ Net Shares Purchased ............................... 713,260 801,671 =========== ============
34 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- Transactions in shares for the period ended March 31, 2003 were:
H CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------ Shares Purchased ................................... 4,450,764 14,679,220 Purchased through Dividend Reinvestment ............ -- -- ------------ ------------ Total Purchased .................................... 4,450,764 14,679,220 Shares Redeemed .................................... (2,627,165) (11,890,532) ------------ ------------ Net Shares Purchased ............................... 1,823,599 2,788,688 ============ ============ C CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------ Shares Purchased ................................... 659,414 2,543,273 Purchased through Dividend Reinvestment ............ -- -- ------------ ------------ Total Purchased .................................... 659,414 2,543,273 Shares Redeemed .................................... (88,698) (729,369) ------------ ------------ Net Shares Purchased ............................... 570,716 1,813,904 ============ ============ Transactions in dollars for the period ended September 30, 2003 were: H CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------ Shares Purchased ................................... $45,228,190 $32,797,641 Purchased through Dividend Reinvestment ............ -- -- ------------ ------------ Total Purchased .................................... 45,228,190 32,797,641 Shares Redeemed .................................... (35,295,458) (25,383,426) ------------ ------------ Net Change ......................................... $ 9,932,732 $ 7,414,215 ============ ============ C CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------ Shares Purchased ................................... $9,844,840 $11,186,742 Purchased through Dividend Reinvestment ............ -- -- ------------ ------------ Total Purchased .................................... 9,844,840 11,186,742 Shares Redeemed .................................... (1,599,260) (3,986,819) ------------ ------------ Net Change ......................................... $8,245,580 $ 7,199,923 ============ ============
SEMI-ANNUAL REPORT 35 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) -------------------------------------------------------------------------------- Transactions in dollars for the period ended March 31, 2003 were:
H CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------- Shares Purchased ........................................... $47,161,455 $135,343,128 Purchased through Dividend Reinvestment .................... -- -- ------------ ------------- Total Purchased ............................................ 47,161,455 135,343,128 Shares Redeemed ............................................ (27,778,040) (98,871,904) ------------ ------------- Net Change ................................................. $19,383,415 $ 36,471,224 ============ ============= C CLASS: CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------- Shares Purchased ........................................... $6,906,677 $22,911,212 Purchased through Dividend Reinvestment .................... -- -- ------------ ------------- Total Purchased ............................................ 6,906,677 22,911,212 Shares Redeemed ............................................ (910,390) (5,912,062) ------------ ------------- Net Change ................................................. $5,996,287 $16,999,150 ============ =============
8. NET ASSETS At September 30, 2003, net assets consisted of:
CORE SECTOR EQUITY ROTATION FUND FUND ------------ ------------- Paid-In Capital ............................................ $43,563,555 $91,075,239 Undistributed Net Investment Loss .......................... (35,178) (289,915) Accumulated Net Realized Gain (Loss) on Investments and Futures Contracts .......................................... 1,880,657 (18,488,865) Net Unrealized Appreciation on Investments and Futures Contracts .......................... 2,958,609 5,816,288 ------------ ------------- Net Assets ................................................. $48,367,643 $78,112,747 ============ =============
9. CHANGE IN INDEPENDENT AUDITORS Effective August 25, 2003, the Trust has retained PricewaterhouseCoopers LLP to serve as the Trust's independent auditors. 10. PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC's site at http://www.sec.gov. 36 -------------------------------------------------------------------------------- This page intentionally left blank. SEMI-ANNUAL REPORT 37 -------------------------------------------------------------------------------- This page intentionally left blank. [LOGO OMITTED] RYDEX INVESTMENTS ESSENTIAL FOR MODERN MARKETS TM 9601 Blackwell Road Suite 500 Rockville,MD 20850 800.820.0888 www.rydexfunds.com ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable at this time. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) There were no significant deficiencies in the design or operation of the internal controls of the Trust or PADCO Advisors, Inc., the investment advisor and manager of the Trust which would have adversely affected the ability of the Trust, or PADCO Advisors, Inc. on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report, and PADCO Advisors, Inc. has identified no material weaknesses in such internal controls on behalf of the Trust. There was no fraud, whether or not material, involving officers or employees of PADCO Advisors, Inc., Rydex Distributors, Inc., or the Trust who have a significant role in the Trust's internal controls that has come to the attention of PADCO Advisors, Inc. or the officers of the Trust. (b) There were no significant changes in PADCO Advisors, Inc.'s internal controls that apply to the Trust or in other factors with respect to the Trust that could significantly affect the Trust's or PADCO Advisors, Inc.'s internal controls during the period covered by this Form N-CSR, and no corrective actions with regard to significant deficiencies or material weaknesses were taken by the Trust or PADCO Advisors, Inc. during such period. ITEM 10. EXHIBITS. (a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable at this time. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) in the exact form set forth below: 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. (Registrant) Rydex Series Funds ------------------------------------------ By (Signature and Title)* /s/ Carl G. Verboncoeur --------------------------------------------- Carl G. Verboncoeur, Principal Executive Officer Date November 24, 2003 ---------------------------------------------------------------------------- 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 (Signature and Title)* /s/ Carl G. Verboncoeur ---------------------------------- Carl G. Verboncoeur, Principal Executive Officer Date November 24, 2003 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ Carl G. Verboncoeur ------------------------------------------------------- Carl G. Verboncoeur, Vice President & Treasurer Date November 24, 2003 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.