-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AfwgqBQorrj7w2k0gSbEbVf2zPUPXtmigr6RHfDkBp83avz1eOhGRsU4fiyH+vhM nY1sqM8HJlgqL65eiRJQSA== 0000935069-04-002032.txt : 20041201 0000935069-04-002032.hdr.sgml : 20041201 20041201103357 ACCESSION NUMBER: 0000935069-04-002032 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041201 DATE AS OF CHANGE: 20041201 EFFECTIVENESS DATE: 20041201 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RYDEX SERIES FUNDS CENTRAL INDEX KEY: 0000899148 IRS NUMBER: 521820225 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07584 FILM NUMBER: 041176079 BUSINESS ADDRESS: STREET 1: 9601 BLACKWELL ROAD STREET 2: SUITE 500 CITY: ROCKVILLE STATE: MD ZIP: 20850 BUSINESS PHONE: 301-296-5100 MAIL ADDRESS: STREET 1: 9601 BLACKWELL ROAD STREET 2: SUITE 500 CITY: ROCKVILLE STATE: MD ZIP: 20850 FORMER COMPANY: FORMER CONFORMED NAME: RYDEX SERIES TRUST DATE OF NAME CHANGE: 19930714 N-CSRS 1 ncsrs904.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, 2005 Date of reporting period: SEPTEMBER 30, 2004 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, 2004 NOVA FUND URSA FUND OTC FUND ARKTOS FUND MEDIUS FUND INVERSE MID-CAP FUND MEKROS FUND INVERSE SMALL-CAP FUND U.S. GOVERNMENT BOND FUND JUNO FUND LARGE-CAP EUROPE FUND LARGE-CAP JAPAN FUND SMALL-CAP VALUE FUND MID-CAP VALUE FUND LARGE-CAP VALUE FUND SMALL-CAP GROWTH FUND MID-CAP GROWTH FUND LARGE-CAP GROWTH FUND U.S. GOVERNMENT MONEY MARKET FUND NOVA MASTER PORTFOLIO URSA MASTER PORTFOLIO ARKTOS MASTER PORTFOLIO JUNO MASTER PORTFOLIO [LOGO] RYDEXInvestments RBENF-SEMI-0904 Essential for modern markets(TM) 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. TABLE OF CONTENTS - -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS ................................................. 2 ABOUT SHAREHOLDERS FUND'S EXPENSES ......................................... 3 FUND PROFILES .............................................................. 8 BENCHMARK FUNDS SCHEDULES OF INVESTMENTS ................................................ 18 STATEMENTS OF ASSETS AND LIABILITIES .................................... 70 STATEMENTS OF OPERATIONS ................................................ 74 STATEMENTS OF CHANGES IN NET ASSETS ..................................... 78 FINANCIAL HIGHLIGHTS .................................................... 84 BENCHMARK PORTFOLIOS SCHEDULES OF INVESTMENTS ................................................ 91 STATEMENTS OF ASSETS AND LIABILITIES .................................... 100 STATEMENTS OF OPERATIONS ................................................ 101 STATEMENTS OF CHANGES IN NET ASSETS ..................................... 102 FINANCIAL HIGHLIGHTS .................................................... 104 NOTES TO FINANCIAL STATEMENTS .............................................. 105 UNAUDITED PROXY VOTING INFORMATION ......................................... 115 UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................... 116 THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1 - -------------------------------------------------------------------------------- DEAR SHAREHOLDER: The U.S. economy reached a more mature phase of the business cycle during the six-month period ending September 30, 2004. This phenomenon was marked by lower realized and forecasted gross domestic product (GDP) growth rates, reduced forecasts for future corporate earnings growth and a cumulative reported one million jobs created during the period. The Federal Reserve (Fed), observing these changes, raised the Fed Funds rate three times between June 30 and September 21. Inflation, as measured both by the Consumer Price Index (+1.7%) and Producer Price Index (+1.9%), rose during this time period. Equity markets moved in a tight trading range over the period. Most broad-based equity indices ended the period with slightly negative returns. The S&P 500(R) Index was down slightly, returning -0.18% over the period. Large-cap stocks tended to outperform small-cap stocks and the S&P 500 outperformed the S&P MidCap 400 TM and Russell 2000(R) indices, which returned -1.15% and -2.40%, respectively. Political and economic uncertainty led investors to return to the relative safety of large-cap stocks. The S&P 500 also outperformed the Nasdaq 100 Index(R), which posted a return of -1.79%. There was good news, though. Between the end of March and September, the unemployment rate experienced a slight decline, moving from 5.6% to 5.4%.The improvement was driven in part by a 2.8% rebound in manufacturing payrolls. RYDEX VALUE AND GROWTH FUNDS During a period that demonstrated no clear direction for the economy, investors gravitated toward the generally perceived less risky value stocks, which outperformed growth stocks. For large-cap stocks, the S&P 500/Barra Value Index rose 0.81%, 3.70% more than the S&P 500/Barra Growth Index, which slid - -2.89%.The S&P MidCap 400/Barra Value Index fell 0.39% during the period, outpacing the -2.64% return of the S&P MidCap 400/Barra Growth Index. Likewise, the S&P SmallCap 600/Barra Value Index outperformed the S&P SmallCap 600/Barra Growth Index by 1.54%, with both indices returning 2.51% and 0.97%, respectively. In line with the market trend of value outperforming growth, Rydex Small-Cap Value Fund H-Class returned a positive 2.54%, while Rydex Large-Cap Growth Fund H-Class returned -3.60%. RYDEX INTERNATIONAL FUNDS International stocks were mixed as European stocks rose and Japanese stocks fell during the past six months. Stronger growth prospects and controlled inflation helped to increase stock prices in Europe. Japanese stocks sold off in May when the market became concerned about a possible slow down in China's economy. The Dow Jones Stoxx SM 50 Index rose 0.20% in U.S. dollar terms while the Topix 100 Index fell 7.82% in U.S. dollar terms. Returns in Europe benefited from a 1% appreciation of the euro while Japanese returns were hurt by a 5% depreciation of the yen. Rydex Large-Cap Europe Fund H-Class was up 2.74% and Rydex Large-Cap Japan Fund H-Class closed the period down -17.14%. RYDEX BOND FUNDS The price of the Long Bond fell during April and May, raising the yield to a high of 5.56%, as an increase in inflation led investors to anticipate higher yields long term. In mid-June, core CPI came in below forecasts for the first time this year and Fed Chairman Alan Greenspan strongly reiterated the Fed's stance to raise rates at a "measured pace," removing inflationary pressures from the market. This outlook, along with increasing oil prices, prompted the Long Bond to rally and the yield to tumble to a low of 4.77% on September 27, 2004, and move up slightly to 4.90% to close out the period. With the rise in price of the Long Bond and the corresponding drop in yield, Rydex Juno Fund Investor Class, which seeks to provide total returns that will inversely correlate to the current LongTreasury Bond, turned from positive to negative and closed out the period with a total return of -1.21%. As the price of the bond moved higher, Rydex U.S. Government Bond Fund Investor Class did an about-face from its negative position, returning a positive 0.45%. As always, we 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 President 2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES - -------------------------------------------------------------------------------- All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. As a shareholder of the fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees, administrative services, and shareholder reports, among others. Operating expenses, which are deducted from a fund's gross income, reduce the investment return of the fund. A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2004 and ending September 30, 2004. The following tables illustrate your fund's costs in two ways: TABLE 1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period." Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating your retirement account, a $15 account-closing fee will be taken from the proceeds of your redemption. TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you compare your fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid during the period. In addition, certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating your retirement account, a $15 account-closing fee will be taken from the proceeds of your redemption. The example is useful in making comparisons because the Securities Exchange Commission requires all mutual funds to calculate expenses based on the 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. The calculations above assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs which may be incurred by some of the fund's classes. These costs may include, but are not limited to, sales charges (loads), redemption fees, and exchange fees. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3 ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED) - -------------------------------------------------------------------------------- You can find more information about the fund's expenses, including annual expense ratios for the past five years, in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate fund prospectus. TABLE 1. BASED ON ACTUAL FUND RETURN
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - ------------------------------------------------------------------------------------------------------- NOVA FUND Investor Class 1.25%++ $ 1,000.00 $ 984.20 $ 6.22 Advisor Class 1.74%++ 1,000.00 981.60 8.64 A-Class 1.50%++ 1,000.00 982.90 7.46 C-Class 2.24%++ 1,000.00 979.00 11.11 URSA FUND Investor Class 1.39%++ 1,000.00 1,002.20 6.98 Advisor Class 1.88%++ 1,000.00 1,000.00 9.43 A-Class 1.64%++ 1,000.00 1,000.00 8.22 C-Class 2.38%++ 1,000.00 996.60 11.91 OTC FUND Investor Class 1.22% 1,000.00 975.30 6.04 Advisor Class 1.71% 1,000.00 972.50 8.46 A-Class 1.48% 1,000.00 973.60 7.32 C-Class 2.21% 1,000.00 969.20 10.91 ARKTOS FUND Investor Class 1.40%++ 1,000.00 1,003.10 7.03 Advisor Class 1.90%++ 1,000.00 1,000.40 9.53 A-Class 1.65%++ 1,000.00 1,002.30 8.28 C-Class 2.39%++ 1,000.00 998.00 11.97 MEDIUS FUND A-Class 1.66% 1,000.00 963.30 8.17 C-Class 2.40% 1,000.00 959.70 11.79 H-Class 1.65% 1,000.00 962.90 8.12 INVERSE MID-CAP FUND A-Class 1.65% 1,000.00 1,000.00 8.27 C-Class 2.40% 1,000.00 996.10 12.01 H-Class 1.65% 1,000.00 999.80 8.27 MEKROS FUND A-Class 1.67% 1,000.00 952.30 8.17 C-Class 2.40% 1,000.00 948.50 11.72 H-Class 1.65% 1,000.00 951.90 8.07 INVERSE SMALL-CAP FUND A-Class 1.66% 1,000.00 1,018.20 8.40 C-Class 2.40% 1,000.00 1,014.40 12.12 H-Class 1.65% 1,000.00 1,017.80 8.35 U.S. GOVERNMENT BOND FUND Investor Class 0.95% 1,000.00 1,004.50 4.77 Advisor Class 1.46% 1,000.00 1,003.00 7.33 A-Class 1.21% 1,000.00 1,002.30 6.07 C-Class 1.95% 1,000.00 1,000.30 9.78
See Notes to Financial Statements. 4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED) - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - ------------------------------------------------------------------------------------------------------- JUNO FUND Investor Class 1.34%++ $ 1,000.00 $ 987.90 $ 6.68 Advisor Class 1.84%++ 1,000.00 984.80 9.16 A-Class 1.60%++ 1,000.00 986.30 7.97 C-Class 2.34%++ 1,000.00 982.80 11.63 LARGE-CAP EUROPE FUND A-Class 1.65% 1,000.00 1,026.70 8.38 C-Class 2.40% 1,000.00 1,022.60 12.17 H-Class 1.65% 1,000.00 1,027.40 8.39 LARGE-CAP JAPAN FUND A-Class 1.65% 1,000.00 828.00 7.56 C-Class 2.40% 1,000.00 825.00 10.98 H-Class 1.64% 1,000.00 828.60 7.52 SMALL-CAP VALUE FUND A-Class 1.55% 1,000.00 1,038.80 7.92 C-Class 2.25% 1,000.00 1,021.10 11.40 H-Class 1.51% 1,000.00 1,025.40 7.67 MID-CAP VALUE FUND A-Class 1.57% 1,000.00 1,019.50 7.95 C-Class 2.26% 1,000.00 994.80 11.30 H-Class 1.52% 1,000.00 997.60 7.61 LARGE-CAP VALUE FUND A-Class 1.63% 1,000.00 1,016.20 8.24 C-Class 2.25% 1,000.00 1,005.60 11.31 H-Class 1.51% 1,000.00 1,008.40 7.60 SMALL-CAP GROWTH FUND A-Class 1.68% 1,000.00 1,042.20 8.60 C-Class 2.25% 1,000.00 1,002.00 11.29 H-Class 1.52% 1,000.00 1,004.70 7.64 MID-CAP GROWTH FUND A-Class 1.62% 1,000.00 1,016.70 8.19 C-Class 2.25% 1,000.00 963.40 11.07 H-Class 1.51% 1,000.00 966.60 7.44 LARGE-CAP GROWTH FUND A-Class 1.56% 1,000.00 994.50 7.80 C-Class 2.26% 1,000.00 960.30 11.11 H-Class 1.52% 1,000.00 964.00 7.48 U.S. GOVERNMENT MONEY MARKET FUND Investor Class 0.90% 1,000.00 1,001.50 4.52 Advisor Class 1.17% 1,000.00 1,000.20 5.87 A-Class 1.14% 1,000.00 1,000.60 5.72 C-Class 1.21% 1,000.00 1,000.00 6.07 Institutional Class 0.55% 1,000.00 1,003.30 2.76
See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5 ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED) - -------------------------------------------------------------------------------- TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - ------------------------------------------------------------------------------------------------------- NOVA FUND Investor Class 1.25%++ $ 1,000.00 $ 1,043.58 $ 6.42 Advisor Class 1.74%++ 1,000.00 1,041.06 8.94 A-Class 1.50%++ 1,000.00 1,042.29 7.71 C-Class 2.24%++ 1,000.00 1,038.49 11.51 URSA FUND Investor Class 1.39%++ 1,000.00 1,042.86 7.14 Advisor Class 1.88%++ 1,000.00 1,040.34 9.66 A-Class 1.64%++ 1,000.00 1,041.57 8.43 C-Class 2.38%++ 1,000.00 1,037.77 12.23 OTC FUND Investor Class 1.22% 1,000.00 1,043.73 6.27 Advisor Class 1.71% 1,000.00 1,041.21 8.79 A-Class 1.48% 1,000.00 1,042.39 7.61 C-Class 2.21% 1,000.00 1,038.64 11.36 ARKTOS FUND Investor Class 1.40%++ 1,000.00 1,042.81 7.19 Advisor Class 1.90%++ 1,000.00 1,040.24 9.76 A-Class 1.65%++ 1,000.00 1,041.52 8.48 C-Class 2.39%++ 1,000.00 1,037.72 12.28 MEDIUS FUND A-Class 1.66% 1,000.00 1,041.47 8.53 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.65% 1,000.00 1,041.52 8.48 INVERSE MID-CAP FUND A-Class 1.65% 1,000.00 1,041.52 8.48 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.65% 1,000.00 1,041.52 8.48 MEKROS FUND A-Class 1.67% 1,000.00 1,041.42 8.58 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.65% 1,000.00 1,041.52 8.48 INVERSE SMALL-CAP FUND A-Class 1.66% 1,000.00 1,041.47 8.53 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.65% 1,000.00 1,041.52 8.48 U.S. GOVERNMENT BOND FUND Investor Class 0.95% 1,000.00 1,045.12 4.88 Advisor Class 1.46% 1,000.00 1,042.50 7.50 A-Class 1.21% 1,000.00 1,043.78 6.22 C-Class 1.95% 1,000.00 1,039.98 10.02 JUNO FUND Investor Class 1.34%++ 1,000.00 1,043.11 6.89 Advisor Class 1.84%++ 1,000.00 1,040.54 9.46 A-Class 1.60%++ 1,000.00 1,041.78 8.22 C-Class 2.34%++ 1,000.00 1,037.97 12.03
See Notes to Financial Statements. 6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED) - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - ------------------------------------------------------------------------------------------------------- LARGE-CAP EUROPE FUND A-Class 1.65% $ 1,000.00 $ 1,041.52 $ 8.48 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.65% 1,000.00 1,041.52 8.48 LARGE-CAP JAPAN FUND A-Class 1.65% 1,000.00 1,041.52 8.48 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.64% 1,000.00 1,041.57 8.43 SMALL-CAP VALUE FUND A-Class 1.55% 1,000.00 1,042.03 7.97 C-Class 2.25% 1,000.00 1,038.44 11.56 H-Class 1.51% 1,000.00 1,042.24 7.76 MID-CAP VALUE FUND A-Class 1.57% 1,000.00 1,041.93 8.07 C-Class 2.26% 1,000.00 1,038.39 11.61 H-Class 1.52% 1,000.00 1,042.19 7.81 LARGE-CAP VALUE FUND A-Class 1.63% 1,000.00 1,041.62 8.38 C-Class 2.25% 1,000.00 1,038.44 11.56 H-Class 1.51% 1,000.00 1,042.24 7.76 SMALL-CAP GROWTH FUND A-Class 1.68% 1,000.00 1,041.37 8.63 C-Class 2.25% 1,000.00 1,038.44 11.56 H-Class 1.52% 1,000.00 1,042.19 7.81 MID-CAP GROWTH FUND A-Class 1.62% 1,000.00 1,041.67 8.33 C-Class 2.25% 1,000.00 1,038.44 11.56 H-Class 1.51% 1,000.00 1,042.24 7.76 LARGE-CAP GROWTH FUND A-Class 1.56% 1,000.00 1,041.98 8.02 C-Class 2.26% 1,000.00 1,038.39 11.61 H-Class 1.52% 1,000.00 1,042.19 7.81 U.S. GOVERNMENT MONEY MARKET FUND Investor Class 0.90% 1,000.00 1,045.37 4.63 Advisor Class 1.17% 1,000.00 1,043.99 6.01 A-Class 1.14% 1,000.00 1,044.14 5.86 C-Class 1.21% 1,000.00 1,043.78 6.22 Institutional Class 0.55% 1,000.00 1,047.17 2.83 - -------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNULAIZED EXPENSE RATIO, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365. + ANNUALIZED ++ EXPENSE RATIO INCLUDES EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7 FUND PROFILES - -------------------------------------------------------------------------------- NOVA FUND OBJECTIVE: To provide investment returns that correspond to 150% of the daily performance of the S&P 500 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification Exposure" on the Beta (Market Exposure as % Industries testing worksheet) of Net Assets) S&P Breakdown - ------------------------------------------------------------------------------------------------------------ Financials 50,219,492.00 18.1% 20.6% Information Technology 40,623,680.00 14.7% 15.8% Health Care 31,826,202.00 11.5% 13.1% Industrials 28,923,903.00 10.5% 11.6% Consumer Discretionary 27,837,980.00 10.1% 11.1% Consumer Staples 26,984,874.00 9.8% 10.7% Energy 18,500,695.00 6.7% 7.4% Telecommunication Services 9,160,017.00 3.3% 3.7% Materials 7,979,862.00 2.9% 3.1% Utilities 7,165,878.00 2.6% 2.9% Futures Contracts (Market Value) 166,506,300.00 60.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ Investor Class July 12, 1993 Advisor Class October 15, 1998 A-Class March 31, 2004 C-Class March 14, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ General Electric Co. 2.8% Exxon Mobil Corp. 2.3% Pfizer, Inc. 2.3% Microsoft Corp. 2.2% Johnson & Johnson 1.8% Citigroup, Inc. 1.6% Wal-Mart Stores, Inc. 1.6% International Business Machines Corp. 1.5% ChevronTexaco Corp. 1.3% Intel Corp. 1.3% - ------------------------------------------------ Top Ten Total 18.7% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. URSA FUND OBJECTIVE: To provide investment returns that inversely correspond to the daily performance of the S&P 500 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification Exposure" on the Beta (Market Exposure as % INDUSTRIES testing worksheet) of Net Assets) S&P Breakdown - ------------------------------------------------------------------------------------------------------------ Financials -- 0.0% 20.6% Information Technology -- 0.0% 15.8% Health Care -- 0.0% 13.1% Industrials -- 0.0% 11.6% Consumer Discretionary -- 0.0% 11.1% Consumer Staples -- 0.0% 10.7% Energy -- 0.0% 7.4% Telecommunication Services -- 0.0% 3.7% Materials -- 0.0% 3.1% Utilities -- 0.0% 2.9% Futures Contracts (Market Value) (456,387,750.00) -77.9% Equity Index Swap Agreements (130,229,794.00) -22.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ Investor Class January 7, 1994 Advisor Class August 5, 1998 A-Class March 31, 2004 C-Class March 15, 2001 The fund invests principally in leveraged derivative instruments, such as equity swap agreements, futures contracts, and options on securities, futures contracts and stock indices. See Notes to Financial Statements. 8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- OTC FUND OBJECTIVE: To provide investment returns that correspond to the daily performance of the Nasdaq 100 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification the Beta testing (Market Exposure as % Nasdaq INDUSTRIES worksheet) of Net Assets) breakdown - ------------------------------------------------------------------------------------------------------------ Information Technology 492,893,677.00 57.7% 49.0% Consumer Discretionary 139,109,109.00 16.3% 18.0% Health Care 120,638,388.00 14.1% 16.0% Industrials 41,938,701.00 4.9% 9.0% Telecommunication Services 24,949,904.00 2.9% 2.0% Consumer Staples 10,960,265.00 1.3% 3.0% Materials 6,309,664.00 0.7% 2.0% Energy 2,723,959.00 0.3% 1.0% Futures Contracts (Market Value) 14,301,600.00 1.7% 0.0% Technology -- 0.0% 0.0% Communications -- 0.0% 0.0% Consumer, Cyclical -- 0.0% 0.0% Consumer, Non-Cyclical -- 0.0% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ Investor Class February 14, 1994 Advisor Class September 22, 1998 A-Class March 31, 2004 C-Class March 26, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ Microsoft Corp. 9.9% Qualcomm, Inc. 6.5% Intel Corp. 4.5% eBay, Inc. 3.8% Cisco Systems, Inc. 3.8% Oracle Corp. 2.9% Nextel Communications, Inc. -- Class A 2.8% Amgen, Inc. 2.5% Starbucks Corp. 2.1% Dell, Inc. 2.1% - ------------------------------------------------ Top Ten Total 40.9% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. ARKTOS FUND OBJECTIVE: To provide investment returns that inversely correspond to the daily performance of the Nasdaq 100 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification the Beta testing (Market Exposure as % Nasdaq INDUSTRIES worksheet) of Net Assets) breakdown - ------------------------------------------------------------------------------------------------------------ Information Technology -- 0.0% 49.0% Consumer Discretionary -- 0.0% 18.0% Health Care -- 0.0% 16.0% Industrials -- 0.0% 9.0% Telecommunication Services -- 0.0% 2.0% Consumer Staples -- 0.0% 3.0% Materials -- 0.0% 2.0% Energy -- 0.0% 1.0% Futures Contracts (Market Value) (93,880,800.00) -32.3% 0.0% Equity Index Swap Agreements (197,133,433.00) -67.8% 0.0% Technology -- 0.0% 0.0% Communications -- 0.0% 0.0% Consumer, Cyclical -- 0.0% 0.0% Consumer, Non-Cyclical -- 0.0% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ Investor Class September 3, 1998 Advisor Class August 1, 2003 A-Class March 31, 2004 C-Class March 7, 2001 The fund invests principally in leveraged derivative instruments, such as equity swap agreements, futures contracts, and options on securities, futures contracts and stock indices. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- MEDIUS FUND OBJECTIVE: To provide investment returns that correspond to 150% of the daily performance of the S&P MidCap 400 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal "Total SOI Holdings Exposure" on the Diversification S&P MidCap Beta testing (Market Exposure as % 400 INDUSTRIES worksheet) of Net Assets) breakdown - ------------------------------------------------------------------------------------------------------------ Financials 5,606,128.00 12.0% 19.4% Consumer Discretionary 5,534,434.00 11.8% 18.5% Information Technology 4,281,140.00 9.2% 14.1% Industrials 3,715,782.00 8.0% 12.7% Health Care 3,069,671.00 6.6% 10.1% Energy 2,523,771.00 5.4% 8.3% Utilities 2,088,260.00 4.5% 6.9% Materials 1,476,382.00 3.2% 4.9% Consumer Staples 1,395,964.00 3.0% 4.5% Telecommunication Service 182,649.00 0.4% 0.6% Futures Contracts (Market Value) 26,538,390.00 56.8% 0.0% Equity Index Swap Agreements 13,293,524.00 28.5% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class March 31, 2004 C-Class August 20, 2001 H-Class August 16, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ XTO Energy, Inc. 0.7% Harman International Industries, Inc. 0.6% Millennium Pharmaceuticals, Inc. 0.6% Commerce Bancorp/Cherry Hill NJ, Inc. 0.6% Banknorth Group, Inc. 0.6% Everest Re Group Ltd. 0.6% Dentsply International, Inc. 0.6% Pepco Holdings, Inc. 0.6% Cadence Design Systems, Inc. 0.6% Energy East Corp. 0.6% - ------------------------------------------------ Top Ten Total 6.1% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. INVERSE MID-CAP FUND OBJECTIVE: To provide investment returns that inversely correspond to the daily performance of the S&P MidCap 400 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal "total soi holdings exposure" on the diversification s&P MIDCAP BETA TESTING (MARKET EXPOSURE AS % 400 INDUSTRIES WORKSHEET) OF NET ASSETS) BREAKDOWN - ------------------------------------------------------------------------------------------------------------ Financials -- 0.0% 19.4% Consumer Discretionary -- 0.0% 18.5% Information Technology -- 0.0% 14.1% Industrials -- 0.0% 12.7% Health Care -- 0.0% 10.1% Energy -- 0.0% 8.3% Utilities -- 0.0% 6.9% Materials -- 0.0% 4.9% Consumer Staples -- 0.0% 4.5% Telecommunication Service -- 0.0% 0.6% Futures Contracts (Market Value) (2,552,910.00) -43.0% 0.0% Equity Index Swap Agreements (3,404,748.00) -57.3% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class March 31, 2004 C-Class February 20, 2004 H-Class February 20, 2004 The fund invests principally in leveraged derivative instruments, such as equity swap agreements, futures contracts, and options on securities, futures contracts and stock indices. See Notes to Financial Statements. 10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- MEKROS FUND OBJECTIVE: To provide investment returns that correspond to 150% of the performance of the Russell 2000 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification S&P MidCap the Beta testing (Market Exposure as % 400 INDUSTRIES worksheet) of Net Assets) breakdown - ------------------------------------------------------------------------------------------------------------ Financials 21,509,200.00 14.8% -- Information Technology 15,581,077.00 10.7% -- Consumer Discretionary 14,338,967.00 9.9% 17.5% Industrials 14,296,513.00 9.8% -- Health Care 13,752,712.00 9.4% 12.2% Materials 6,954,597.00 4.8% 9.9% Energy 6,609,588.00 4.5% -- Utilities 3,030,947.00 2.1% 4.3% Consumer Staples 2,824,707.00 1.9% 1.7% Telecommunication Service 669,675.00 0.5% -- Financial Services -- -- 23.9% Technology -- -- 11.9% Producer Durables -- -- 7.3% Other Energy -- -- 4.5% Auto & Transportation -- -- 4.4% Other -- -- 2.3% Integrated Oils -- -- 0.1% Futures Contracts (Market Value) 81,424,060.00 55.9% -- Equity Index Swap Agreements 37,451,627.00 25.7% --
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class March 31, 2004 C-Class January 23, 2001 H-Class November 1, 2000 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ New Century Financial Corp. 0.4% Trimble Navigation Ltd. 0.4% Unit Corp. 0.4% Laidlaw International, Inc. 0.4% Brocade Communications Systems, Inc. 0.4% Carpenter Technology Corp. 0.3% OM Group, Inc. 0.3% Joy Global, Inc. 0.3% Provident Bankshares Corp. 0.3% Millennium Chemicals, Inc. 0.3% - ------------------------------------------------ Top Ten Total 3.5% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. INVERSE SMALL-CAP FUND OBJECTIVE: To provide investment results that inversely correspond to the daily performance of the Russell 2000 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification S&P MidCap the Beta testing (Market Exposure as % 400 INDUSTRIES worksheet) of Net Assets) breakdown - ------------------------------------------------------------------------------------------------------------ Financials -- 0.0% -- Information Technology -- 0.0% -- Consumer Discretionary -- 0.0% 17.5% Industrials -- 0.0% -- Health Care -- 0.0% 12.2% Materials -- 0.0% 9.9% Energy -- 0.0% -- Utilities -- 0.0% 4.3% Consumer Staples -- 0.0% 1.7% Telecommunication Service -- 0.0% -- Financial Services -- -- 23.9% Technology -- -- 11.9% Producer Durables -- -- 7.3% Other Energy -- -- 4.5% Auto & Transportation -- -- 4.4% Other -- -- 2.3% Integrated Oils -- -- 0.1% Futures Contracts (Market Value) (16,593,800.00) -47.5% -- Equity Index Swap Agreements (18,384,375.00) -52.6% --
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class March 31, 2004 C-Class February 20, 2004 H-Class February 20, 2004 The fund invests principally in leveraged derivative instruments, such as equity swap agreements, futures contracts, and options on securities, futures contracts and stock indices. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND OBJECTIVE: To provide investment results that correspond to 120% of the daily price movement of the Long Treasury Bond. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal soi holdings "total exposure" on diversification the beta testing (market exposure as % INDUSTRIES worksheet) of net assets) - -------------------------------------------------------------------------------------------- U.S. Treasury Obligations 135,891,000.00 88.6% Futures Contracts (Market Value) 50,035,625.00 32.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ Investor Class January 3, 1994 Advisor Class August 1, 2003 A-Class March 31, 2004 C-Class May 2, 2001 The fund invests principally in U.S. Government securities and in leveraged derivative instruments, such as futures and options contracts. JUNO FUND OBJECTIVE: To provide investment returns that inversely correlate to the daily price movement of the Long Treasury Bond. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification the Beta testing (Market Exposure as % INDUSTRIES worksheet) of Net Assets) - -------------------------------------------------------------------------------------------- U.S. Treasury Obligations (2,009,223,327.00) -68.3% Futures Contracts (Market Value) (947,086,875.00) -32.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ Investor Class March 3, 1995 Advisor Class August 1, 2003 A-Class March 31, 2004 C-Class March 28, 2001 The fund invests principally in short sales of long-term Treasury Bonds and derivative instruments, such as futures and option contracts. See Notes to Financial Statements. 12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- LARGE-CAP EUROPE FUND OBJECTIVE: To provide investment returns that correlate to 125% of the daily performance of the Dow Jones STOXX 50 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal "total soi holdings exposure" on the diversification dow jones beta testing (market exposure as % stoxx 50 INDUSTRIES worksheet) of net assets) index - ------------------------------------------------------------------------------------------------------------ U.S. Treasury Obligations -- 0.0% -- Futures Contracts (Market Value) 42,001,719.00 124.1% -- Financials -- -- 34.3% Cosumer, Non-cyclical -- -- 21.6% Energy -- -- 19.3% Communications -- -- 14.8% Industrials -- -- 3.1% Utilities -- -- 2.4% Basic Materials -- -- 2.3% Cosumer, Cyclical -- -- 1.2% Technology -- -- 1.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class March 31, 2004 C-Class May 10, 2001 H-Class May 8, 2000 The fund invests principally in leveraged derivative instruments, such as equity swap agreements, futures contracts, and options on securities, futures contracts and stock indices. LARGE-CAP JAPAN FUND OBJECTIVE: To provide investment returns that correlate to 125% of the daily performance of the Topix 100 Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification the Beta testing (Market Exposure as % Topix INDUSTRIES worksheet) of Net Assets) 100 Index - ------------------------------------------------------------------------------------------------------------- Futures Contracts (Market Value) 3,526,250.00 8.6% -- Equity Index Swap Agreements 47,826,248.00 116.7% -- Consumer, Cyclical -- -- 27.9% Financials -- -- 19.0% Industrials -- -- 15.0% Communications -- -- 11.8% Cosumer, Non-cyclical -- -- 8.4% Technology -- -- 6.2% Utilities -- -- 5.7% Basic Materials -- -- 4.5% Energy -- -- 0.6% Other -- -- 0.9%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class March 31, 2004 C-Class March 1, 2002 H-Class May 8, 2000 The fund invests principally in leveraged derivative instruments, such as equity swap agreements, futures contracts, and options on securities, futures contracts and stock indices. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND OBJECTIVE: To provide investment results that correspond to the daily performance of the S&P SmallCap 600/Barra Value Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification (Market Exposure" on the Beta Exposure as % of Net INDUSTRIES testing worksheet) Assets) - -------------------------------------------------------------------------------------------- Industrials 24,641,794.00 20.8% Financials 24,384,582.00 20.6% Consumer Discretionary 17,040,069.00 14.4% Information Technology 14,257,350.00 12.1% Materials 9,680,394.00 8.2% Utilities 9,336,409.00 7.9% Health Care 6,687,930.00 5.7% Energy 5,488,827.00 4.6% Consumer Staples 4,498,842.00 3.8% Telecommunication Services 329,016.00 0.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ MDC Holdings, Inc. 1.0% Yellow Roadway Corp. 0.9% Timken Co. 0.9% South Financial Group, Inc. 0.8% Steel Dynamics, Inc. 0.8% UGI Corp. 0.8% Standard-Pacific Corp. 0.8% Energen Corp. 0.8% Hughes Supply, Inc. 0.8% Shurgard Storage Centers, Inc. -- Class A 0.7% - ------------------------------------------------ Top Ten Total 8.3% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. MID-CAP VALUE FUND OBJECTIVE: To provide investment results that correspond to the daily performance of the S&P MidCap 400/Barra Value Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification (Market Exposure" on the Beta Exposure as % of Net INDUSTRIES testing worksheet) Assets) - -------------------------------------------------------------------------------------------- Financials 12,536,427.00 24.5% Consumer Discretionary 7,584,117.00 14.8% Utilities 5,971,262.00 11.7% Industrials 5,771,190.00 11.3% Information Technology 4,874,983.00 9.5% Energy 4,662,861.00 9.1% Materials 3,344,217.00 6.5% Consumer Staples 2,806,107.00 5.5% Health Care 2,211,468.00 4.3% Telecommunication Services 478,254.00 0.9% Futures Contracts (Market Value) -- 0.0% Equity Index Swap Agreements -- 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ DR Horton, Inc. 1.5% Lennar Corp. - Class A 1.5% L-3 Communications Holdings, Inc. 1.4% Weatherford International Ltd. 1.3% Fidelity National Financial, Inc. 1.3% Banknorth Group, Inc. 1.2% Tyson Foods, Inc. -- Class A 1.1% NewYork Community Bancorp, Inc. 1.1% Mohawk Industries, Inc. 1.0% Caesars Entertainment, Inc. 1.0%. - ------------------------------------------------ Top Ten Total 12.4% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. See Notes to Financial Statements. 14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND OBJECTIVE: To provide investment results that correspond to the daily performance of the S&P 500/Barra Value Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification (Market Exposure" on the Beta Exposure as % of Net INDUSTRIES testing worksheet) Assets) - -------------------------------------------------------------------------------------------- Financials 41,207,152.00 35.5% Energy 15,006,416.00 12.9% Consumer Discretionary 14,617,895.00 12.6% Industrials 10,035,989.00 8.6% Telecommunication Services 7,468,627.00 6.4% Information Technology 7,257,511.00 6.2% Utilities 6,245,145.00 5.4% Health Care 5,126,984.00 4.4% Materials 4,009,744.00 3.5% Consumer Staples 2,904,622.00 2.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ Exxon Mobil Corp. 5.7% Citigroup, Inc. 4.2% American International Group, Inc. 3.2% Bank of America Corp. 3.2% JPMorgan Chase & Co. 2.6% ChevronTexaco Corp. 2.1% Verizon Communications, Inc. 2.0% Wells Fargo & Co. 1.8% SBC Communications, Inc. 1.6% Time Warner, Inc. 1.4% - ------------------------------------------------ Top Ten Total 27.8% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. SMALL-CAP GROWTH FUND OBJECTIVE: To provide investment results that correspond to the daily performance of the S&P SmallCap 600/Barra Growth Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts should equal SOI Holdings "Total Exposure" on Diversification (Market the Beta testing Exposure as % of Net INDUSTRIES worksheet) Assets) - -------------------------------------------------------------------------------------------- Health Care 17,750,351.00 19.0% Consumer Discretionary 17,570,120.00 18.8% Information Technology 17,305,555.00 18.5% Industrials 15,941,373.00 17.1% Financials 9,282,371.00 9.9% Energy 6,810,385.00 7.3% Materials 4,012,426.00 4.3% Consumer Staples 2,561,456.00 2.7% Telecommunication Services 375,706.00 0.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ NVR, Inc. 1.6% New Century Financial Corp./Old 1.2% Polaris Industries, Inc. 1.0% Cooper Cos., Inc. 1.0% Medicis Pharmaceutical Corp. -- Class A 1.0% Massey Energy Co. 1.0% Fossil, Inc. 1.0% Roper Industries, Inc. 0.9% Florida Rock Industries, Inc. 0.9% Patina Oil & Gas Corp. 0.9% - ------------------------------------------------ Top Ten Total 10.5% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- MID-CAP GROWTH FUND OBJECTIVE: To provide investment results that correspond to the daily performance of the S&P MidCap 400/Barra Growth Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification (Market Exposure" on the Beta Exposure as % of Net INDUSTRIES testing worksheet) Assets) - -------------------------------------------------------------------------------------------- Consumer Discretionary 12,674,511.00 21.9% Information Technology 10,929,819.00 18.9% Health Care 9,229,483.00 16.0% Industrials 7,958,174.00 13.8% Financials 6,732,587.00 11.6% Energy 4,145,079.00 7.2% Consumer Staples 1,903,410.00 3.3% Materials 1,733,874.00 3.0% Utilities 960,692.00 1.7% Telecommunication Services 102,260.00 0.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - ------------------------------------------------ A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ Washington Post -- Class B 1.9% XTO Energy, Inc. 1.7% Murphy Oil Corp. 1.7% Harman International Industries, Inc. 1.5% Smith International, Inc. 1.3% Microchip Technology, Inc. 1.1% Expeditors International Washington, Inc. 1.1% Compass Bancshares, Inc. 1.1% Legg Mason, Inc. 1.1% Whole Foods Market, Inc. 1.1% - ------------------------------------------------ Top Ten Total 13.6% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. LARGE-CAP GROWTH FUND OBJECTIVE: To provide investment results that correspond to the daily performance of the S&P 500/Barra Growth Index. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification (Market Exposure" on the Beta Exposure as % of Net INDUSTRIES testing worksheet) Assets) - -------------------------------------------------------------------------------------------- Information Technology 1,377,593.00 25.6% Health Care 1,196,442.00 22.3% Consumer Staples 1,035,608.00 19.3% Industrials 787,321.00 14.6% Consumer Discretionary 489,346.00 9.1% Financials 228,834.00 4.3% Materials 144,560.00 2.7% Energy 67,493.00 1.3% Telecommunication Services 34,551.00 0.6% Utilities 6,853.00 0.1%
INCEPTION DATES: - ------------------------------------------------ A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - ------------------------------------------------ General Electric Co. 7.0% Microsoft Corp. 5.9% Pfizer, Inc. 4.6% Wal-Mart Stores, Inc. 4.5% Johnson & Johnson 3.3% International Business 2.8% Machines Corp. Procter & Gamble Co. 2.7% Intel Corp. 2.5% Cisco Systems, Inc. 2.4% Coca-Cola Co. 1.9% - ------------------------------------------------ Top Ten Total 37.6% - ------------------------------------------------ "Ten Largest Holdings" excludes any temporary cash investments and equity index products. See Notes to Financial Statements. 16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONCLUDED) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND OBJECTIVE: To provide security of principal, high current income and liquidity by investing in securities issued by the U.S. Government, its agencies or instrumentalities. HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
(total of these amounts SOI Holdings should equal "Total Diversification (Market Exposure" on the Beta Exposure as % of Net INDUSTRIES testing worksheet) Assets) - -------------------------------------------------------------------------------------------- Federal Agency Discount Note 1,434,202,307.00 88.5% Repurchase Agreements 197,032,141.00 12.2% Federal Agency Bonds 5,000,000.00 0.3%
FADN -- Federal Agency Discount Notes. INCEPTION DATES: - ------------------------------------------------ Investor Class December 1, 1993 Advisor Class April 1, 1998 A-Class March 31, 2004 C-Class October 19, 2000 Institutional Class August 1, 2002 The fund invests principally in U.S. Government securities See Notes to Financial Statements. 17 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- OTC FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 98.3% INFORMATION TECHNOLOGY 57.7% SOFTWARE 18.2% Microsoft Corp.+ 3,071,430 $ 84,925,039 Oracle Corp.* 2,187,320 24,672,970 Symantec Corp.*+ 252,570 13,861,042 Adobe Systems, Inc.+ 158,040 7,818,239 Veritas Software Corp.* 310,060 5,519,068 Intuit, Inc.*+ 89,450 4,061,030 Check Point Software Technologies Ltd.*+ 186,850 3,170,844 Electronic Arts, Inc.*+ 63,100 2,901,969 Siebel Systems, Inc.* 371,230 2,799,074 Citrix Systems, Inc.*+ 133,940 2,346,629 BEA Systems, Inc.* 272,450 1,882,629 Synopsys, Inc.*+ 92,050 1,457,152 -------------- TOTAL SOFTWARE 155,415,685 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 13.5% Intel Corp. 1,904,720 38,208,683 Maxim Integrated Products, Inc.+ 326,370 13,802,187 Applied Materials, Inc.* 559,540 9,226,815 Xilinx, Inc.+ 326,400 8,812,800 KLA-Tencor Corp.*+ 199,040 8,256,179 Altera Corp.*+ 363,850 7,120,545 Linear Technology Corp.+ 191,710 6,947,571 Lam Research Corp.*+ 245,400 5,369,352 Broadcom Corp. -- Class A*+ 191,160 5,216,756 Novellus Systems, Inc.* 176,710 4,698,719 Microchip Technology, Inc.+ 119,650 3,211,406 ATI Technologies, Inc.* 156,940 2,405,890 Intersil Corp. -- Class A+ 76,370 1,216,574 Nvidia Corp.*+ 75,370 1,094,372 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 115,587,849 -------------- COMMUNICATIONS EQUIPMENT 13.1% Qualcomm, Inc.+ 1,424,740 55,621,849 Cisco Systems, Inc.*+ 1,793,660 32,465,246 Research In Motion Ltd.*+ 141,440 10,797,530 Juniper Networks, Inc.*+ 226,930 5,355,548 JDS Uniphase Corp.*+ 1,355,460 4,567,900 Tellabs, Inc.*+ 166,920 1,533,995 Comverse Technology, Inc.*+ 74,830 1,409,049 -------------- TOTAL COMMUNICATIONS EQUIPMENT 111,751,117 -------------- COMPUTERS & PERIPHERALS 6.5% Dell, Inc.*+ 501,250 17,844,500 Apple Computer, Inc.*+ 408,840 15,842,550 Sun Microsystems, Inc.* 2,480,020 10,019,281 Network Appliance, Inc.*+ 297,860 6,850,780 Sandisk Corp.*+ 109,220 3,180,486 QLogic Corp.*+ 63,810 1,889,414 -------------- TOTAL COMPUTERS & PERIPHERALS 55,627,011 -------------- INTERNET SOFTWARE & SERVICES 2.6% Yahoo!, Inc.*+ 503,850 17,085,553 VeriSign, Inc.* 275,920 5,485,290 -------------- TOTAL INTERNET SOFTWARE & SERVICES 22,570,843 -------------- IT CONSULTING & SERVICES 2.1% Fiserv, Inc.* 313,040 10,912,575 Paychex, Inc.+ 227,360 6,854,904 -------------- TOTAL IT CONSULTING & SERVICES 17,767,479 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.7% Flextronics International Ltd.*+ 420,640 5,573,480 CDW Corp.+ 69,280 4,020,319 Molex, Inc. 86,560 2,581,219 Sanmina-SCI Corp.* 283,500 1,998,675 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 14,173,693 -------------- TOTAL INFORMATION TECHNOLOGY 492,893,677 -------------- CONSUMER DISCRETIONARY 16.3% INTERNET & CATALOG RETAIL 6.1% eBay, Inc.*+ 356,780 32,802,353 InterActiveCorp*+ 507,790 11,181,536 Amazon.com, Inc.*+ 202,910 8,290,903 -------------- TOTAL INTERNET & CATALOG RETAIL 52,274,792 -------------- MEDIA 3.6% Comcast Corp. -- Class A*+ 617,460 17,437,070 Pixar, Inc.*+ 68,430 5,399,127 EchoStar Communications Corp.*+ 171,630 5,341,126 Lamar Advertising Co.*+ 64,280 2,674,691 -------------- TOTAL MEDIA 30,852,014 -------------- SPECIALTY RETAIL 2.8% Bed Bath & Beyond, Inc.*+ 307,700 11,418,747 Staples, Inc.+ 230,760 6,881,263 Petsmart, Inc.+ 103,180 2,929,280 Ross Stores, Inc.+ 121,770 2,854,289 -------------- TOTAL SPECIALTY RETAIL 24,083,579 -------------- HOTELS RESTAURANTS & LEISURE 2.1% Starbucks Corp.*+ 401,930 18,271,738 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 18,271,738 -------------- MULTILINE RETAIL 1.0% Kmart Holding Corp.*+ 68,210 5,966,329 Dollar Tree Stores, Inc.*+ 77,250 2,081,887 -------------- TOTAL MULTILINE RETAIL 8,048,216 -------------- HOUSEHOLD DURABLES 0.4% Garmin Ltd.+ 71,660 3,099,295 -------------- TOTAL HOUSEHOLD DURABLES 3,099,295 -------------- See Notes to Financial Statements. 18 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- OTC FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- AUTO COMPONENTS 0.3% Gentex Corp.+ 70,580 $ 2,479,475 -------------- TOTAL AUTO COMPONENTS 2,479,475 -------------- TOTAL CONSUMER DISCRETIONARY 139,109,109 -------------- HEALTH CARE 14.1% BIOTECHNOLOGY 9.9% Amgen, Inc.*+ 375,300 21,272,004 Biogen Idec, Inc.*+ 262,160 16,036,327 Genzyme Corp.*+ 222,860 12,125,813 Chiron Corp.*+ 225,380 9,961,796 Gilead Sciences, Inc.*+ 231,870 8,667,301 Cephalon, Inc.*+ 150,690 7,218,051 Millennium Pharmaceuticals, Inc.*+ 384,950 5,277,664 Invitrogen Corp.*+ 43,450 2,389,315 Medimmune, Inc.*+ 70,620 1,673,694 -------------- TOTAL BIOTECHNOLOGY 84,621,965 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 1.8% Biomet, Inc.+ 240,280 11,264,327 DENTSPLY International, Inc.+ 85,860 4,459,568 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 15,723,895 -------------- HEALTH CARE PROVIDERS & SERVICES 1.4% Express Scripts, Inc.*+ 63,250 4,132,755 Patterson Cos., Inc.*+ 51,090 3,911,450 Henry Schein, Inc.*+ 25,160 1,567,720 First Health Group Corp.* 68,230 1,097,821 Lincare Holdings, Inc.*+ 26,010 772,757 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 11,482,503 -------------- PHARMACEUTICALS 1.0% Teva Pharmaceutical Industries Ltd. -- SP ADR+ 339,500 8,810,025 -------------- TOTAL PHARMACEUTICALS 8,810,025 -------------- TOTAL HEALTH CARE 120,638,388 -------------- INDUSTRIALS 4.9% COMMERCIAL SERVICES & SUPPLIES 2.1% Apollo Group, Inc. -- Class A*+ 134,220 9,847,721 Cintas Corp.+ 143,030 6,012,981 Career Education Corp.*+ 82,920 2,357,416 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 18,218,118 -------------- MACHINERY 1.2% Paccar, Inc.+ 146,430 10,121,242 -------------- TOTAL MACHINERY 10,121,242 -------------- AIR FREIGHT & COURIERS 0.8% Expeditors International Washington, Inc.+ 73,670 3,808,739 C.H. Robinson Worldwide, Inc.+ 73,270 3,398,995 -------------- TOTAL AIR FREIGHT & COURIERS 7,207,734 -------------- TRADING COMPANIES & DISTRIBUTORS 0.4% Fastenal Co.+ 54,690 3,150,144 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 3,150,144 -------------- ELECTRICAL EQUIPMENT 0.3% American Power Conversion Corp.+ 122,860 2,136,535 -------------- TOTAL ELECTRICAL EQUIPMENT 2,136,535 -------------- AIRLINES 0.1% Ryanair Holdings PLC -- SP ADR*+ 37,840 1,104,928 -------------- TOTAL AIRLINES 1,104,928 -------------- TOTAL INDUSTRIALS 41,938,701 -------------- TELECOMMUNICATION SERVICES 2.9% WIRELESS TELECOMMUNICATION SERVICES 2.8% Nextel Communications, Inc. -- Class A* 997,480 23,779,923 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 23,779,923 -------------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.1% Level 3 Communications, Inc.*+ 451,730 1,169,981 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,169,981 -------------- TOTAL TELECOMMUNICATION SERVICES 24,949,904 -------------- CONSUMER STAPLES 1.3% FOOD & DRUG RETAILING 1.3% Costco Wholesale Corp.+ 167,280 6,952,156 Whole Foods Market, Inc.+ 46,720 4,008,109 -------------- TOTAL FOOD & DRUG RETAILING 10,960,265 -------------- TOTAL CONSUMER STAPLES 10,960,265 MATERIALS 0.8% CHEMICALS 0.4% Sigma-Aldrich Corp.+ 55,620 3,225,960 -------------- TOTAL CHEMICALS 3,225,960 -------------- CONTAINERS & PACKAGING 0.4% Smurfit-Stone Container Corp.*+ 159,200 3,083,704 -------------- TOTAL CONTAINERS & PACKAGING 3,083,704 -------------- TOTAL MATERIALS 6,309,664 -------------- ENERGY 0.3% ENERGY EQUIPMENT & SERVICES 0.3% Patterson-UTI Energy, Inc.+ 142,840 2,723,959 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 2,723,959 -------------- TOTAL ENERGY 2,723,959 -------------- TOTAL COMMON STOCKS (Cost $512,955,370) 839,523,667 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- OTC FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 1.2% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 57,599 $ 57,599 1.71% due 10/01/04 4,812,710 4,812,710 1.70% due 10/01/04 4,812,710 4,812,710 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $9,683,019) 9,683,019 -------------- SECURITIES LENDING COLLATERAL 38.1% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 325,347,018 325,347,018 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $325,347,018) 325,347,018 -------------- TOTAL INVESTMENTS 137.6% (Cost $847,985,407) $1,174,553,704 ============== LIABILITIES IN EXCESS OF OTHER ASSETS - (37.6)% $ (320,686,022) ============== NET ASSETS - 100.0% $ 853,867,682 - -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) ----------- -------------- FUTURES CONTRACTS PURCHASED December 2004 Nasdaq 100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $14,301,600) 505 $ 181,021 ============== * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. 20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- MEDIUS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 64.0% FINANCIALS 12.0% BANKS 3.5% Commerce Bancorp, Inc./NJ+ 5,200 $ 287,040 Banknorth Group, Inc. 8,090 283,150 Mercantile Bankshares Corp. 5,510 264,260 Greater Bay Bancorp+ 6,700 192,625 Silicon Valley Bancshares* 5,100 189,567 Hibernia Corp. -- Class A 6,700 176,947 Wilmington Trust Corp. 2,270 82,197 City National Corp. 1,080 70,146 Compass Bancshares, Inc. 510 22,348 Colonial BancGroup, Inc. 960 19,632 Bank of Hawaii Corp. 350 16,537 Associated Banc-Corp 350 11,225 -------------- TOTAL BANKS 1,615,674 -------------- INSURANCE 2.9% Everest Re Group Ltd. 3,790 281,711 W.R. Berkley Corp. 6,230 262,657 American Financial Group, Inc./OH+ 6,610 197,573 Allmerica Financial Corp.* 6,750 181,440 Horace Mann Educators Corp. 10,010 175,976 Fidelity National Financial, Inc. 2,820 107,442 Arthur J. Gallagher & Co.+ 2,760 91,439 Unitrin, Inc. 1,650 68,590 HCC Insurance Holdings, Inc.+ 130 3,919 -------------- TOTAL INSURANCE 1,370,747 -------------- THRIFTS & MORTGAGE FINANCE 1.8% Independence Community Bank Corp. 6,250 244,062 Astoria Financial Corp. 6,500 230,685 Webster Financial Corp. 4,580 226,206 New York Community Bancorp, Inc.+ 2,920 59,977 PMI Group, Inc.+ 1,220 49,508 Radian Group, Inc.+ 440 20,341 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 830,779 -------------- REAL ESTATE 1.6% Hospitality Properties Trust 5,530 234,970 Rayonier, Inc. 4,690 212,176 Liberty Property Trust+ 3,500 139,440 Developers Diversified Realty Corp. 3,150 123,322 Mack-Cali Realty Corp. 1,150 50,945 New Plan Excel Realty Trust 80 2,000 -------------- TOTAL REAL ESTATE 762,853 -------------- CAPITAL MARKETS 1.4% Investors Financial Services Corp.+ 5,260 237,384 Eaton Vance Corp.+ 5,690 229,819 A.G. Edwards, Inc.+ 3,540 122,555 SEI Investments Co. 1,790 60,287 Legg Mason, Inc.+ 220 11,719 -------------- TOTAL CAPITAL MARKETS 661,764 -------------- DIVERSIFIED FINANCIALS 0.5% Leucadia National Corp. 3,930 222,635 -------------- TOTAL DIVERSIFIED FINANCIALS 222,635 -------------- CONSUMER FINANCE 0.3% AmeriCredit Corp.* 5,910 123,401 MoneyGram International, Inc. 1,070 18,275 -------------- TOTAL CONSUMER FINANCE 141,676 -------------- TOTAL FINANCIALS 5,606,128 -------------- CONSUMER DISCRETIONARY 11.8% SPECIALTY RETAIL 3.7% Petsmart, Inc.+ 9,310 264,311 Ross Stores, Inc. 10,940 256,434 Williams-Sonoma, Inc.*+ 4,490 168,599 AnnTaylor Stores Corp.* 6,690 156,546 Chico's FAS, Inc.*+ 4,050 138,510 Payless Shoesource, Inc.*+ 12,310 124,700 Michaels Stores, Inc. 2,000 118,420 Urban Outfitters, Inc.*+ 2,470 84,968 Pacific Sunwear of California, Inc.* 3,910 82,306 O'Reilly Automotive, Inc.* 1,990 76,197 Regis Corp. 1,650 66,363 CarMax, Inc.* 2,760 59,478 American Eagle Outfitters, Inc.+ 1,600 58,960 Rent-A-Center, Inc.* 2,220 57,409 -------------- TOTAL SPECIALTY RETAIL 1,713,201 -------------- HOUSEHOLD DURABLES 2.7% Harman International Industries, Inc.+ 2,780 299,545 American Greetings Corp. -- Class A*+ 8,020 201,462 Blyth, Inc. 6,050 186,945 Lennar Corp. -- Class A+ 3,030 144,228 Mohawk Industries, Inc.* 1,600 127,024 Furniture Brands International, Inc.+ 4,950 124,146 D.R. Horton, Inc. 2,480 82,113 Hovnanian Enterprises, Inc. -- Class A*+ 1,920 76,992 Tupperware Corp. 410 6,962 -------------- TOTAL HOUSEHOLD DURABLES 1,249,417 -------------- See Notes to Financial Statements. THE RYDEX Series FUNDS SEMI-ANNUAL REPORT | 21 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEDIUS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- HOTELS RESTAURANTS & LEISURE 2.2% Mandalay Resort Group 3,260 $ 223,799 Brinker International, Inc.*+ 6,640 206,836 GTECH Holdings Corp. 6,440 163,061 Ruby Tuesday, Inc.+ 4,270 119,005 Outback Steakhouse, Inc. 2,820 117,114 Boyd Gaming Corp. 2,000 56,300 Bob Evans Farms, Inc. 2,050 55,678 Cheesecake Factory, Inc.*+ 990 42,966 Krispy Kreme Doughnuts, Inc.*+ 1,970 24,940 Six Flags, Inc.* 3,020 16,429 Caesars Entertainment, Inc.* 740 12,358 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 1,038,486 -------------- MEDIA 1.8% Belo Corp. -- Class A 9,610 216,609 Washington Post Co. -- Class B 220 202,400 Reader's Digest Association, Inc. 13,290 193,901 Harte-Hanks, Inc. 4,570 114,296 Entercom Communications Corp.* 1,710 55,849 Scholastic Corp.* 1,420 43,864 Westwood One, Inc.* 530 10,478 -------------- TOTAL MEDIA 837,397 -------------- AUTO COMPONENTS 0.7% Lear Corp.+ 3,390 184,585 BorgWarner, Inc. 3,040 131,602 Bandag, Inc. 270 11,826 Gentex Corp. 270 9,485 -------------- TOTAL AUTO COMPONENTS 337,498 -------------- MULTILINE RETAIL 0.3% Saks, Inc.* 6,830 82,301 Dollar Tree Stores, Inc.*+ 2,970 80,042 -------------- TOTAL MULTILINE RETAIL 162,343 -------------- AUTOMOBILES 0.2% Thor Industries, Inc. 3,930 104,027 -------------- TOTAL AUTOMOBILES 104,027 -------------- LEISURE EQUIPMENT & PRODUCTS 0.2% Callaway Golf Co. 8,710 92,065 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 92,065 -------------- TOTAL CONSUMER DISCRETIONARY 5,534,434 -------------- INFORMATION TECHNOLOGY 9.2% SOFTWARE 2.5% Cadence Design Systems, Inc.*+ 20,460 266,799 McAfee, Inc.*+ 10,680 214,668 Fair Isaac Corp. 6,350 185,420 RSA Security, Inc.* 7,930 153,049 Sybase, Inc.* 6,570 90,600 Macrovision Corp.*+ 3,290 79,223 Wind River Systems, Inc.* 5,520 67,344 Macromedia, Inc.* 3,090 62,047 Transaction Systems Architects, Inc. -- Class A* 2,080 38,657 -------------- TOTAL SOFTWARE 1,157,807 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.0% Semtech Corp.*+ 10,640 203,969 Silicon Laboratories, Inc.*+ 5,820 192,584 Micrel, Inc.* 15,820 164,686 Microchip Technology, Inc.+ 4,650 124,806 Lam Research Corp.* 5,310 116,183 Cypress Semiconductor Corp.*+ 9,830 86,897 Triquint Semiconductor, Inc.* 13,530 52,767 RF Micro Devices, Inc.* 100 634 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 942,526 -------------- COMMUNICATIONS EQUIPMENT 1.6% Harris Corp.+ 3,210 176,357 Polycom, Inc.* 7,830 155,191 Plantronics, Inc. 2,920 126,261 Utstarcom, Inc.*+ 6,650 107,131 ADTRAN, Inc.+ 4,400 99,792 CommScope, Inc.*+ 3,980 85,968 -------------- TOTAL COMMUNICATIONS EQUIPMENT 750,700 -------------- IT CONSULTING & SERVICES 1.1% Alliance Data Systems Corp.* 5,730 232,409 CheckFree Corp.*+ 4,310 119,258 Acxiom Corp. 2,930 69,558 DST Systems, Inc.*+ 1,260 56,032 CSG Systems International, Inc.* 3,120 48,079 -------------- TOTAL IT CONSULTING & SERVICES 525,336 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.0% CDW Corp.+ 3,050 176,991 Vishay Intertechnology, Inc.*+ 8,550 110,295 National Instruments Corp.+ 3,310 100,194 Newport Corp.* 4,780 54,827 Amphenol Corp. -- Class A* 270 9,250 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 451,557 -------------- COMPUTERS & PERIPHERALS 0.7% Storage Technology Corp.*+ 9,340 235,928 Sandisk Corp.*+ 2,440 71,053 Quantum Corp.* 6,520 15,061 -------------- TOTAL COMPUTERS & PERIPHERALS 322,042 -------------- OFFICE ELECTRONICS 0.3% Zebra Technologies Corp. -- Class A*+ 2,150 131,172 -------------- TOTAL OFFICE ELECTRONICS 131,172 -------------- See Notes to Financial Statements. 22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEDIUS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- TOTAL INFORMATION TECHNOLOGY $ 4,281,140 -------------- INDUSTRIALS 7.9% COMMERCIAL SERVICES & SUPPLIES 2.9% Herman Miller, Inc. 8,070 198,925 Education Management Corp.* 7,090 188,878 Sotheby's Holdings, Inc. -- Class A* 9,530 149,812 Republic Services, Inc. 4,690 139,574 Laureate Education, Inc.*+ 3,340 124,315 Career Education Corp.*+ 4,310 122,533 Brink's Co. 3,720 112,232 ChoicePoint, Inc.* 2,330 99,374 Copart, Inc.* 3,690 69,852 Stericycle, Inc.*+ 940 43,146 Adesa, Inc.* 2,440 40,089 Korn/Ferry International, Inc.* 1,830 33,361 Corinthian Colleges, Inc.*+ 1,220 16,446 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,338,537 -------------- MACHINERY 1.8% AGCO Corp.* 10,050 227,331 Kennametal, Inc. 4,710 212,656 Pentair, Inc.+ 5,250 183,278 Harsco Corp. 3,300 148,170 Nordson Corp. 2,330 79,989 -------------- TOTAL MACHINERY 851,424 -------------- AEROSPACE & DEFENSE 0.8% L-3 Communications Holdings, Inc. 2,750 184,250 Precision Castparts Corp. 1,540 92,477 Sequa Corp. -- Class A* 1,650 86,147 -------------- TOTAL AEROSPACE & DEFENSE 362,874 -------------- ROAD & RAIL 0.8% Werner Enterprises, Inc.+ 10,730 207,196 Swift Transportation Co., Inc.*+ 8,930 150,203 -------------- TOTAL ROAD & RAIL 357,399 -------------- AIR FREIGHT & COURIERS 0.6% J.B.Hunt Transport Services, Inc.+ 5,400 200,556 CNF, Inc. 1,830 75,012 Expeditors International Washington, Inc. 300 15,510 -------------- TOTAL AIR FREIGHT & COURIERS 291,078 -------------- ELECTRICAL EQUIPMENT 0.5% Thomas & Betts Corp. 6,970 186,936 AMETEK, Inc. 1,070 32,442 -------------- TOTAL ELECTRICAL EQUIPMENT 219,378 -------------- CONSTRUCTION & ENGINEERING 0.4% Dycom Industries, Inc.* 6,980 198,162 -------------- TOTAL CONSTRUCTION & ENGINEERING 198,162 -------------- INDUSTRIAL CONGLOMERATES 0.1% Carlisle Cos., Inc. 660 42,194 -------------- TOTAL INDUSTRIAL CONGLOMERATES 42,194 -------------- AIRLINES 0.0% JetBlue Airways Corp.*+ 1,350 28,242 -------------- TOTAL AIRLINES 28,242 -------------- MARINE 0.0% Alexander & Baldwin, Inc. 560 19,006 -------------- TOTAL MARINE 19,006 -------------- TRADING COMPANIES & DISTRIBUTORS 0.0% Fastenal Co.+ 130 7,488 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 7,488 -------------- TOTAL INDUSTRIALS 3,715,782 -------------- HEALTH CARE 6.6% HEALTH CARE PROVIDERS & SERVICES 2.4% Patterson Cos., Inc.* 3,080 235,805 Henry Schein, Inc.* 2,550 158,890 Community Health Systems, Inc.* 5,790 154,477 Coventry Health Care, Inc.* 2,350 125,419 LifePoint Hospitals, Inc.*+ 3,730 111,937 Lincare Holdings, Inc.*+ 2,760 82,000 Renal Care Group, Inc.* 2,360 76,063 Covance, Inc.* 1,650 65,951 Universal Health Services, Inc. -- Class B 1,270 55,245 First Health Group Corp.* 2,200 35,398 Apria Healthcare Group, Inc.* 1,270 34,608 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,135,793 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.0% DENTSPLY International, Inc. 5,310 275,802 Varian Medical Systems, Inc.* 6,590 227,816 Visx, Inc.*+ 8,530 175,718 Edwards Lifesciences Corp.* 3,780 126,630 Varian, Inc.* 1,520 57,562 Cytyc Corp.* 1,800 43,470 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 906,998 -------------- BIOTECHNOLOGY 1.4% Millennium Pharmaceuticals, Inc.*+ 21,840 299,426 Charles River Laboratories International, Inc.* 4,780 218,924 Invitrogen Corp.* 1,620 89,084 Cephalon, Inc.*+ 1,200 57,480 Vertex Pharmaceuticals, Inc.* 450 4,725 -------------- TOTAL BIOTECHNOLOGY 669,639 -------------- PHARMACEUTICALS 0.8% Perrigo Co. 9,650 198,307 Par Pharmaceutical Cos., Inc.*+ 2,180 78,327 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEDIUS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Sepracor, Inc.*+ 1,570 $ 76,585 IVAX Corp.* 210 4,022 -------------- TOTAL PHARMACEUTICALS 357,241 -------------- TOTAL HEALTH CARE 3,069,671 -------------- ENERGY 5.4% OIL & GAS 4.4% XTO Energy, Inc. 9,410 305,637 Pioneer Natural Resources Co.+ 7,500 258,600 Pogo Producing Co. 5,340 253,383 Newfield Exploration Co.* 4,130 252,921 Noble Energy, Inc. 4,180 243,443 Forest Oil Corp.* 7,250 218,370 Murphy Oil Corp. 2,060 178,746 Plains Exploration & Production Co.* 6,260 149,364 Overseas Shipholding Group, Inc.+ 2,950 146,438 Western Gas Resources, Inc. 1,320 37,739 -------------- TOTAL OIL & GAS 2,044,641 -------------- ENERGY EQUIPMENT & SERVICES 1.0% Weatherford International Ltd.* 3,300 168,366 Smith International, Inc.*+ 1,750 106,277 Helmerich & Payne, Inc. 3,490 100,128 Grant Prideco, Inc.*+ 3,290 67,412 ENSCO International, Inc. 510 16,662 National-Oilwell, Inc.* 420 13,801 Patterson-UTI Energy, Inc. 340 6,484 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 479,130 -------------- TOTAL ENERGY 2,523,771 -------------- UTILITIES 4.5% MULTI-UTILITIES 2.6% Energy East Corp. 10,510 264,642 Equitable Resources, Inc.+ 4,750 257,972 National Fuel Gas Co. 8,030 227,490 SCANA Corp.+ 4,620 172,511 MDU Resources Group, Inc. 4,030 106,110 Sierra Pacific Resources Corp.*+ 7,750 69,362 Vectren Corp. 2,260 56,907 Questar Corp. 980 44,904 -------------- TOTAL MULTI-UTILITIES 1,199,898 -------------- ELECTRIC UTILITIES 1.9% Pepco Holdings, Inc.+ 13,480 268,252 Northeast Utilities 11,740 227,639 OGE Energy Corp. 8,380 211,427 Idacorp, Inc. 6,230 181,044 -------------- TOTAL ELECTRIC UTILITIES 888,362 -------------- TOTAL UTILITIES 2,088,260 -------------- MATERIALS 3.2% CHEMICALS 1.6% Valspar Corp. 4,540 211,927 Scotts Co. -- Class A* 3,290 211,054 Airgas, Inc. 4,670 112,407 IMC Global, Inc.*+ 4,460 77,559 Lyondell Chemical Co.+ 2,430 54,578 RPM International, Inc. 2,260 39,889 FMC Corp.* 530 25,742 Minerals Technologies, Inc. 350 20,601 -------------- TOTAL CHEMICALS 753,757 -------------- PAPER & FOREST PRODUCTS 0.9% Bowater, Inc.+ 5,840 223,029 Potlatch Corp.+ 4,180 195,666 -------------- TOTAL PAPER & FOREST PRODUCTS 418,695 -------------- CONTAINERS & PACKAGING 0.4% Longview Fibre Co. 10,800 164,700 -------------- TOTAL CONTAINERS & PACKAGING 164,700 -------------- METALS & MINING 0.3% Peabody Energy Corp. 2,340 139,230 -------------- TOTAL METALS & MINING 139,230 -------------- TOTAL MATERIALS 1,476,382 -------------- CONSUMER STAPLES 3.0% FOOD PRODUCTS 1.7% Tyson Foods, Inc. -- Class A+ 16,320 261,446 Hormel Foods Corp.+ 9,230 247,179 Smithfield Foods, Inc.* 9,210 230,250 Dean Foods Co.*+ 1,130 33,923 -------------- TOTAL FOOD PRODUCTS 772,798 -------------- FOOD & DRUG RETAILING 0.5% Whole Foods Market, Inc.+ 1,560 133,832 Ruddick Corp. 5,300 104,092 BJ's Wholesale Club, Inc.*+ 320 8,749 -------------- TOTAL FOOD & DRUG RETAILING 246,673 -------------- BEVERAGES 0.4% PepsiAmericas, Inc. 10,010 191,191 -------------- TOTAL BEVERAGES 191,191 -------------- HOUSEHOLD PRODUCTS 0.4% Energizer Holdings, Inc.*+ 3,980 183,478 Church & Dwight Co., Inc. 65 1,824 -------------- TOTAL HOUSEHOLD PRODUCTS 185,302 -------------- TOTAL CONSUMER STAPLES 1,395,964 -------------- TELECOMMUNICATION SERVICES 0.4% WIRELESS TELECOMMUNICATION SERVICES 0.4% Telephone & Data Systems, Inc. 2,170 182,649 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 182,649 -------------- TOTAL TELECOMMUNICATION SERVICES 182,649 -------------- TOTAL COMMON STOCKS (Cost $27,127,810) 29,874,181 -------------- See Notes to Financial Statements. 24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- MEDIUS FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 14.1% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 39,166 $ 39,166 1.71% due 10/01/04 3,272,508 3,272,508 1.70% due 10/01/04 3,272,508 3,272,508 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $6,584,182) 6,584,182 -------------- SECURITIES LENDING COLLATERAL 8.9% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 4,176,485 4,176,485 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $4,176,485) 4,176,485 -------------- TOTAL INVESTMENTS 87.0% (Cost $37,888,477) $ 40,634,848 ============== OTHER ASSETS IN EXCESS OF LIABILITIES - 13.0% $ 6,075,558 ============== NET ASSETS - 100.0% $ 46,710,406 - -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) ----------- -------------- FUTURES CONTRACTS PURCHASED December 2004 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $26,538,390) 447 $ 143,831 ============== UNITS ----------- EQUITY INDEX SWAP AGREEMENT November 2004 S&P 400 MidCap Index Swap, Maturing 11/22/04** (Notional Market Value $13,293,524) 22,410 $ 58,945 ============== * NON-INCOME PRODUCING SECURITIES. ** PRICE RETURN BASED ON S&P MIDCAP 400 INDEX +/- FINANCING AT A VARIABLE RATE. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- INVERSE MID-CAP FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 71.6% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 25,290 $ 25,290 1.71% due 10/01/04 2,113,182 2,113,182 1.70% due 10/01/04 2,113,182 2,113,182 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $4,251,654) 4,251,654 -------------- TOTAL INVESTMENTS 71.6% (Cost $4,251,654) $ 4,251,654 ============== OTHER ASSETS IN EXCESS OF LIABILITIES - 28.4% $ 1,687,340 ============== NET ASSETS - 100.0% $ 5,938,994 - -------------------------------------------------------------------------------- UNREALIZED LOSS CONTRACTS (NOTE 1) ----------- -------------- FUTURES CONTRACTS SOLD SHORT December 2004 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $2,552,910) 43 $ (23,500) ============== UNITS ----------- EQUITY INDEX SWAP AGREEMENT November 2004 S&P 400 MidCap Index Swap, Maturing 11/22/04* (Notional Market Value $3,404,748) 5,740 $ (18,490) ============== * PRICE RETURN BASED ON S&P MIDCAP 400 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. 26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 68.4% FINANCIALS 14.8% BANKS 5.7% Provident Bankshares Corp. 14,094 $ 472,854 Southwest Bancorp of Texas, Inc. 23,076 464,751 Susquehanna Bancshares, Inc. 17,272 424,891 Pacific Capital Bancorp 13,990 413,824 International Bancshares Corp. 10,704 393,372 Chittenden Corp. 14,251 388,346 First Republic Bank+ 7,817 359,582 TrustCo Bank Corp./NY 27,176 348,396 City Holding Co. 10,345 340,247 Irwin Financial Corp. 13,068 337,416 Independent Bank Corp./MI 12,403 334,881 Hanmi Financial Corp. 9,843 297,259 Trustmark Corp. 8,646 268,718 Wintrust Financial Corp. 4,427 253,578 Community Bank System, Inc. 9,559 240,218 FNB Corp. 10,199 225,704 UMB Financial Corp. 4,237 201,978 First Bancorp Puerto Rico 4,120 198,996 Umpqua Holding Corp. 8,211 185,240 Westamerica Bancorporation 3,250 178,392 Park National Corp. 1,400 178,122 Old National Bancorp/IN 6,836 169,806 First Midwest Bancorp, Inc./IL 4,800 165,888 Greater Bay Bancorp+ 5,757 165,514 East-West Bancorp, Inc. 4,646 156,059 BancorpSouth, Inc. 6,768 155,596 United Bankshares, Inc. 4,446 154,054 PrivateBancorp, Inc. 5,620 151,515 Oriental Financial Group+ 5,320 143,959 First National Bankshares of Florida, Inc. 4,280 105,074 Citizens Banking Corp./MI 3,097 100,869 MB Financial Corp. 1,870 74,127 Signature Bank/New York NY* 2,752 73,616 Boston Private Financial Holdings, Inc. 2,560 63,898 Texas Capital Bancshares, Inc.* 2,606 47,299 Univest Corporation of Pennsylvania 1,129 46,007 -------------- TOTAL BANKS 8,280,046 -------------- REAL ESTATE 4.2% MFA Mortgage Investments, Inc. 50,587 465,906 Nationwide Health Properties, Inc. 20,003 415,062 Brandywine Realty Trust+ 13,798 392,967 Equity One, Inc. 18,932 371,446 Commercial Net Lease Realty 20,184 367,752 LaSalle Hotel Properties 12,731 351,376 Colonial Properties Trust 8,603 346,013 Maguire Properties, Inc. 13,896 337,812 US Restaurant Properties, Inc. 19,425 328,088 Anworth Mortgage Asset Corp. 27,270 310,333 Bedford Property Investors, Inc. 10,160 308,254 Lexington Corporate Properties Trust 13,222 287,050 Senior Housing Properties Trust 15,922 283,730 Capstead Mortgage Corp.+ 20,904 260,255 Home Properties, Inc. 6,207 245,549 National Health Investors, Inc. 6,028 171,436 Healthcare Realty Trust, Inc. 4,360 170,214 Impac Mortgage Holdings, Inc. 6,386 167,952 American Financial Realty Trust+ 11,110 156,762 Newcastle Investment Corp. 4,140 127,098 LNR Property Corp.+ 2,036 126,049 Luminent Mortgage Capital, Inc. 3,722 47,195 Highland Hospitality Corp. 4,050 46,170 Arbor Realty Trust, Inc. 1,600 35,520 Capital Lease Funding, Inc. 2,820 31,133 -------------- TOTAL REAL ESTATE 6,151,122 -------------- INSURANCE 2.0% Hilb Rogal & Hobbs Co.+ 10,607 384,186 ProAssurance Corp.* 10,450 365,959 Horace Mann Educators Corp. 19,753 347,258 Philadelphia Consolidated Holding Co.* 6,279 346,098 21st Century Insurance Group 23,308 311,162 Zenith National Insurance Corp. 7,010 296,593 American Equity Investment Life Holding Co.* 30,268 287,243 Infinity Property & Casualty Corp. 7,099 209,633 Vesta Insurance Group, Inc. 46,374 208,219 UICI 4,390 143,729 First Acceptance Corp.* 4,710 33,676 FPIC Insurance Group, Inc.*+ 1,028 26,574 -------------- TOTAL INSURANCE 2,960,330 -------------- THRIFTS & MORTGAGE FINANCE 1.8% New Century Financial Corp. 8,812 530,659 MAF Bancorp, Inc. 8,599 370,875 Brookline Bancorp, Inc. 23,575 369,420 Flagstar Bancorp, Inc. 17,031 362,420 Provident Financial Services, Inc. 20,977 361,853 Corus Bankshares, Inc. 4,245 183,087 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Sterling Financial Corp./WA* 4,006 $ 141,171 Ocwen Financial Corp.*+ 13,313 121,814 Commercial Capital Bancorp, Inc. 3,929 89,149 Commercial Federal Corp.+ 2,370 63,943 Franklin Bank Corp./Houston TX* 2,180 37,169 Clifton Savings Bancorp, Inc. 3,140 36,612 KNBT Bancorp, Inc. 188 3,166 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 2,671,338 -------------- CAPITAL MARKETS 0.6% Knight Trading Group, Inc.* 40,979 378,236 Piper Jaffray Cos., Inc.* 8,236 326,063 LaBranche & Co., Inc.* 6,533 55,204 Capital Southwest Corp. 390 29,640 -------------- TOTAL CAPITAL MARKETS 789,143 -------------- CONSUMER FINANCE 0.3% World Acceptance Corp.* 16,613 386,252 Education Lending Group, Inc.*+ 2,938 43,424 -------------- TOTAL CONSUMER FINANCE 429,676 -------------- DIVERSIFIED FINANCIALS 0.2% eSpeed, Inc. -- Class A* 23,148 227,545 -------------- TOTAL DIVERSIFIED FINANCIALS 227,545 -------------- TOTAL FINANCIALS 21,509,200 -------------- INFORMATION TECHNOLOGY 10.7% SOFTWARE 2.3% Parametric Technology Corp.* 87,731 463,220 Internet Security Systems, Inc.*+ 23,538 400,146 Borland Software Corp.* 44,406 370,790 Micros Systems, Inc.* 7,349 367,965 MicroStrategy, Inc. -- Class A* 8,103 332,952 Filenet Corp.* 16,081 280,774 Opsware, Inc.*+ 44,585 250,122 Quest Software, Inc.* 20,426 227,137 Hyperion Solutions Corp.*+ 4,727 160,671 Ansys, Inc.* 2,670 132,779 Macrovision Corp.*+ 4,649 111,948 Altiris, Inc.* 3,097 98,020 THQ, Inc.* 3,903 75,952 Sonic Solutions, Inc.* 1,801 29,392 Lawson Software, Inc.* 761 4,262 -------------- TOTAL SOFTWARE 3,306,130 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.0% Trimble Navigation Ltd.*+ 16,781 530,279 Paxar Corp.* 19,966 452,829 Agilsys, Inc. 23,290 402,684 Technitrol, Inc.* 17,722 345,579 Cognex Corp. 11,965 313,483 Taser International, Inc.*+ 8,263 310,276 Coherent, Inc.* 5,010 129,959 Littelfuse, Inc.* 3,337 115,227 Global Imaging Systems, Inc.* 3,265 101,476 Veeco Instruments, Inc.* 3,771 79,078 Lexar Media, Inc.* 6,458 54,183 TTM Technologies, Inc.* 3,794 33,729 Digital Theater Systems, Inc.* 1,750 31,937 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,900,719 -------------- COMPUTERS & PERIPHERALS 1.4% Brocade Communications Systems, Inc.*+ 91,004 514,173 Hutchinson Technology, Inc.*+ 15,061 402,581 Imation Corp. 10,173 362,057 Electronics for Imaging, Inc.*+ 15,614 253,571 PalmOne, Inc.*+ 4,682 142,520 Quantum Corp.*+ 40,947 94,588 Adaptec, Inc.* 11,775 89,490 Emulex Corp.* 7,641 88,024 Pinnacle Systems, Inc.* 6,856 28,589 Silicon Graphics, Inc.*+ 14,635 20,928 Overland Storage, Inc.* 1,279 17,893 -------------- TOTAL COMPUTERS & PERIPHERALS 2,014,414 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.3% Photronics, Inc.*+ 19,525 324,505 Power Integrations, Inc.*+ 14,887 304,141 DSP Group, Inc.* 13,940 293,437 Kulicke & Soffa Industries, Inc.* 35,190 198,824 Sigmatel, Inc.* 8,231 174,580 Mindspeed Technologies, Inc.*+ 83,725 167,450 RF Micro Devices, Inc.* 16,745 106,163 Integrated Device Technology, Inc.*+ 10,746 102,409 OmniVision Technologies, Inc.*+ 5,458 77,231 Credence Systems Corp.*+ 9,848 70,906 Lattice Semiconductor Corp.* 8,065 39,599 Pixelworks, Inc.* 3,006 30,090 Dupont Photomasks, Inc.* 1,448 24,674 Atheros Communications, Inc.* 2,195 22,389 Tessera Technologies, Inc.* 1,011 22,343 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1,958,741 -------------- IT CONSULTING & SERVICES 1.3% SRA International, Inc. -- Class A* 6,900 355,764 iPayment Holdings, Inc.* 8,495 341,159 Perot Systems Corp. -- Class A* 11,531 185,188 MAXIMUS, Inc.* 6,317 181,993 BISYS Group, Inc.* 12,180 177,950 See Notes to Financial Statements. 28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Euronet Worldwide, Inc.* 8,104 $ 151,707 eFunds Corp.* 8,086 150,319 Sapient Corp.* 19,269 147,022 Titan Corp.* 7,006 97,874 Gartner, Inc. -- Class A* 5,820 68,036 Keane, Inc.*+ 4,390 67,430 -------------- TOTAL IT CONSULTING & SERVICES 1,924,442 -------------- INTERNET SOFTWARE & SERVICES 1.3% EarthLink, Inc.*+ 43,467 447,710 Digital River, Inc.* 12,105 360,487 aQuantive, Inc.* 35,871 346,155 ValueClick, Inc.* 31,096 293,546 Ariba, Inc.* 22,503 210,178 Equinix, Inc.* 2,591 79,725 HomeStore, Inc.* 30,289 69,968 Digital Insight Corp.*+ 2,965 40,413 -------------- TOTAL INTERNET SOFTWARE & SERVICES 1,848,182 -------------- COMMUNICATIONS EQUIPMENT 1.1% F5 Networks, Inc.*+ 14,553 443,284 Ditech Communications Corp.* 15,360 343,911 Inter-Tel, Inc.+ 14,537 314,290 Aspect Communications Corp.* 15,397 152,892 Packeteer, Inc.* 10,250 110,803 Ixia* 11,325 110,079 Bel Fuse, Inc. -- Class B 3,172 104,930 Extreme Networks, Inc.*+ 10,845 48,260 -------------- TOTAL COMMUNICATIONS EQUIPMENT 1,628,449 -------------- TOTAL INFORMATION TECHNOLOGY 15,581,077 -------------- CONSUMER DISCRETIONARY 9.9% SPECIALTY RETAIL 2.4% Stage Stores, Inc.* 10,959 375,017 Sonic Automotive, Inc. 17,890 358,694 Jo-Ann Stores, Inc.* 11,193 313,852 Children's Place Retail Stores, Inc.* 12,845 307,124 Group 1 Automotive, Inc.*+ 10,657 290,723 United Auto Group, Inc. 11,359 284,997 Lithia Motors, Inc. -- Class A 12,775 271,596 Stein Mart, Inc.* 17,784 270,672 Hollywood Entertainment Corp.* 25,096 247,698 Guitar Center, Inc.*+ 5,265 227,975 Christopher & Banks Corp. 13,463 215,543 Tractor Supply Co.* 6,614 207,944 Haverty Furniture Cos., Inc. 8,950 156,983 PEP Boys-Manny Moe & Jack+ 1,180 16,520 -------------- TOTAL SPECIALTY RETAIL 3,545,338 -------------- HOTELS RESTAURANTS & LEISURE 2.1% Vail Resorts, Inc.* 18,197 328,820 Rare Hospitality International, Inc.* 12,105 322,598 Ryan's Restaurant Group, Inc.* 21,510 319,208 Jack in the Box, Inc.* 9,946 315,587 O'Charleys, Inc.* 18,931 308,575 Boca Resorts, Inc. -- Class A* 15,414 286,238 CEC Entertainment, Inc.* 6,796 249,753 Bob Evans Farms, Inc. 8,483 230,398 Lone Star Steakhouse & Saloon, Inc. 7,705 199,020 Bluegreen Corp.* 11,959 133,104 Scientific Games Corp. -- Class A* 5,791 110,608 Triarc Cos. -- Class B 6,074 69,669 Ameristar Casinos, Inc. 1,807 54,662 Pinnacle Entertainment, Inc.* 3,748 51,722 Red Robin Gourmet Burgers, Inc.* 1,163 50,788 Multimedia Games, Inc.* 2,249 34,860 Penn National Gaming, Inc.* 490 19,796 Sunterra Corp.* 1,910 18,202 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 3,103,608 -------------- MEDIA 1.4% RH Donnelley Corp.*+ 8,391 414,180 Reader's Digest Association, Inc. 27,275 397,942 Mediacom Communications Corp.* 44,038 287,568 Salem Communications Corp./DE -- Class A* 10,911 276,266 Valassis Communications, Inc.* 5,330 157,661 Sinclair Broadcast Group, Inc. -- Class A 19,093 139,379 Arbitron, Inc.* 2,962 108,439 Spanish Broadcasting Systems* 8,913 87,704 Journal Communications, Inc. -- Class A 3,716 65,179 Entravision Communications Corp. -- Class A* 8,380 63,772 Navarre Corp.* 2,369 34,327 -------------- TOTAL MEDIA 2,032,417 -------------- HOUSEHOLD DURABLES 1.3% American Greetings Corp. -- Class A*+ 17,277 433,998 Tupperware Corp.+ 20,480 347,750 Meritage Homes Corp.* 3,873 304,418 Champion Enterprises, Inc.* 19,132 196,868 Blyth, Inc. 4,660 143,994 Levitt Corp. -- Class A 5,786 135,740 Furniture Brands International, Inc.+ 5,387 135,106 Ethan Allen Interiors, Inc.+ 3,810 132,398 -------------- TOTAL HOUSEHOLD DURABLES 1,830,272 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- TEXTILES & APPAREL 1.0% Kellwood Co. 11,930 $ 434,848 Phillips-Van Heusen Corp. 16,285 362,830 K-Swiss, Inc. -- Class A+ 15,620 300,685 Quiksilver, Inc.* 10,358 263,300 Carter's, Inc.* 2,850 78,917 -------------- TOTAL TEXTILES & APPAREL 1,440,580 -------------- AUTO COMPONENTS 0.6% Cooper Tire & Rubber Co. 16,689 336,617 Visteon Corp.+ 38,631 308,662 ArvinMeritor, Inc. 6,133 114,994 Hayes Lemmerz International, Inc.* 3,920 39,827 LKQ Corp.* 2,070 37,819 Tower Automotive, Inc.*+ 6,960 14,546 -------------- TOTAL AUTO COMPONENTS 852,465 -------------- INTERNET & CATALOG RETAIL 0.4% Insight Enterprises, Inc.* 20,616 347,174 1-800-FLOWERS.com, Inc.* 11,080 91,964 J. Jill Group, Inc.* 1,888 37,477 Coldwater Creek, Inc.*+ 1,044 21,788 Priceline.com, Inc.*+ 490 10,863 -------------- TOTAL INTERNET & CATALOG RETAIL 509,266 -------------- AUTOMOBILES 0.3% Winnebago Industries, Inc.+ 4,540 157,266 Monaco Coach Corp. 6,110 132,282 Thor Industries, Inc. 4,630 122,556 Fleetwood Enterprises, Inc.*+ 4,630 70,283 -------------- TOTAL AUTOMOBILES 482,387 -------------- LEISURE EQUIPMENT & PRODUCTS 0.2% K2, Inc.* 9,980 142,814 Marinemax, Inc.* 3,591 80,869 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 223,683 -------------- DISTRIBUTORS 0.1% Wesco International, Inc.* 8,352 202,536 -------------- TOTAL DISTRIBUTORS 202,536 -------------- MULTILINE RETAIL 0.1% ShopKo Stores, Inc.* 3,696 64,347 99 Cents Only Stores*+ 3,659 52,068 -------------- TOTAL MULTILINE RETAIL 116,415 -------------- TOTAL CONSUMER DISCRETIONARY 14,338,967 -------------- INDUSTRIALS 9.8% MACHINERY 2.6% Joy Global, Inc. 13,822 475,200 Kennametal, Inc. 9,748 440,122 Ceradyne, Inc.* 8,346 366,473 Lincoln Electric Holdings, Inc. 11,062 346,904 ESCO Technologies, Inc.* 5,116 346,660 Tecumseh Products Co. -- Class A 8,265 346,056 IDEX Corp. 9,925 337,053 Clarcor, Inc. 7,025 334,882 Stewart & Stevenson Services, Inc. 18,277 322,955 Toro Co. 2,600 177,580 Middleby Corp. 2,282 120,147 Wabash National Corp.* 3,740 102,738 Gardner Denver, Inc.* 2,146 59,165 Flowserve Corp.* 1,870 45,217 -------------- TOTAL MACHINERY 3,821,152 -------------- COMMERCIAL SERVICES & SUPPLIES 2.5% Strayer Education, Inc.+ 3,798 436,808 Waste Connections, Inc.* 12,224 387,256 CoStar Group, Inc.* 7,835 385,404 School Specialty, Inc.*+ 9,381 369,705 NCO Group, Inc.* 12,236 329,760 Rollins, Inc. 13,398 325,437 Bowne & Co., Inc. 22,086 286,897 Tetra Tech, Inc.*+ 22,392 283,707 Greg Manning Auctions, Inc.*+ 19,076 213,461 Central Parking Corp. 15,452 204,275 Corrections Corporation of America* 3,438 121,568 G & K Services, Inc. -- Class A 2,478 98,476 Consolidated Graphics, Inc.* 2,175 91,133 Universal Technical Institute, Inc.* 2,800 84,504 Intersections, Inc.* 668 9,786 Brady Corp. -- Class A 94 4,584 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 3,632,761 -------------- AEROSPACE & DEFENSE 1.0% Aviall, Inc.* 16,699 340,660 Esterline Technologies Corp.*+ 10,700 327,313 Triumph Group, Inc.* 9,582 324,159 Orbital Sciences Corp.* 24,795 283,159 Moog, Inc. -- Class A* 5,368 194,858 AAR Corp.* 4,730 58,889 -------------- TOTAL AEROSPACE & DEFENSE 1,529,038 -------------- ROAD & RAIL 0.9% Laidlaw International, Inc.* 31,295 514,803 Dollar Thrifty Automotive Group, Inc.* 11,932 290,305 Werner Enterprises, Inc.+ 7,920 152,935 Swift Transportation Co., Inc.*+ 8,200 137,924 Kansas City Southern* 8,352 126,700 Arkansas Best Corp. 2,560 93,747 SCS Transportation, Inc.* 2,187 41,422 -------------- TOTAL ROAD & RAIL 1,357,836 -------------- See Notes to Financial Statements. 30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- CONSTRUCTION & ENGINEERING 0.7% Dycom Industries, Inc.* 13,063 $ 370,858 Shaw Group, Inc.*+ 28,490 341,880 Washington Group International, Inc.* 4,830 167,215 EMCOR Group, Inc.* 2,674 100,596 -------------- TOTAL CONSTRUCTION & ENGINEERING 980,549 -------------- ELECTRICAL EQUIPMENT 0.7% Woodward Governor Co. 4,837 326,449 Thomas & Betts Corp.+ 10,754 288,422 Regal-Beloit Corp. 8,234 199,180 FuelCell Energy, Inc.* 4,480 45,920 A.O. Smith Corp. 1,750 42,613 American Superconductor Corp.* 2,930 36,391 Plug Power, Inc.* 5,515 35,351 -------------- TOTAL ELECTRICAL EQUIPMENT 974,326 -------------- BUILDING PRODUCTS 0.4% Griffon Corp.*+ 14,379 303,397 Jacuzzi Brands, Inc.* 28,387 263,999 Lennox International, Inc. 5,064 75,656 -------------- TOTAL BUILDING PRODUCTS 643,052 -------------- AIRLINES 0.4% SkyWest, Inc. 19,872 299,074 AirTran Holdings, Inc.* 19,868 197,885 Continental Airlines, Inc. -- Class B*+ 7,868 67,035 Frontier Airlines, Inc.* 6,176 47,432 -------------- TOTAL AIRLINES 611,426 -------------- MARINE 0.2% Alexander & Baldwin, Inc. 8,767 297,552 -------------- TOTAL MARINE 297,552 -------------- INDUSTRIAL CONGLOMERATES 0.2% Tredegar Corp. 12,520 227,864 -------------- TOTAL INDUSTRIAL CONGLOMERATES 227,864 -------------- AIR FREIGHT & COURIERS 0.2% Pacer International, Inc.*+ 13,473 220,957 -------------- TOTAL AIR FREIGHT & COURIERS 220,957 -------------- TOTAL INDUSTRIALS 14,296,513 -------------- HEALTH CARE 9.4% HEALTH CARE PROVIDERS & SERVICES 2.7% Cerner Corp.*+ 9,269 400,977 LifePoint Hospitals, Inc.*+ 11,271 338,243 Magellan Health Services, Inc.* 8,187 299,317 Advisory Board Co.* 8,601 288,994 NDCHealth Corp. 15,549 249,561 AmSurg Corp.* 11,771 249,310 AMERIGROUP Corp.* 3,550 199,687 eResearch Technology, Inc.* 14,190 189,153 First Health Group Corp.* 9,420 151,568 Res-Care, Inc.* 12,008 142,295 Apria Healthcare Group, Inc.* 5,160 140,610 American Healthways, Inc.* 4,830 140,601 Centene Corp.* 2,968 126,377 Dendrite International, Inc.* 7,175 115,661 Molina Healthcare, Inc.* 2,820 100,110 Beverly Enterprises, Inc.*+ 12,820 97,047 RehabCare Group, Inc.* 4,134 95,206 LabOne, Inc.* 3,014 88,099 Parexel International Corp.* 4,242 83,143 Select Medical Corp. 6,110 82,057 Stewart Enterprises, Inc. -- Class A* 11,142 77,437 Province Healthcare Co.* 3,450 72,174 Genesis HealthCare Corp.* 2,330 70,855 United Surgical Partners International, Inc.*+ 1,970 67,670 Odyssey HealthCare, Inc.* 3,456 61,344 LCA-Vision, Inc. 1,340 34,559 Hanger Orthopedic Group, Inc.* 5,737 28,742 Proxymed, Inc.* 1,410 14,058 VistaCare, Inc. -- Class A*+ 890 13,626 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 4,018,481 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.6% Intuitive Surgical, Inc.* 18,189 450,178 Ventana Medical Systems, Inc.* 7,823 394,592 Visx, Inc.*+ 15,452 318,311 Align Technology, Inc.*+ 20,616 315,013 Kyphon, Inc.* 11,898 294,832 Biosite, Inc.*+ 5,679 278,044 Advanced Neuromodulation Systems, Inc.*+ 9,015 273,605 DJ Orthopedics, Inc.* 15,208 268,421 Laserscope* 11,942 242,064 Varian, Inc.* 6,367 241,118 Hologic, Inc.* 11,762 226,654 CTI Molecluar Imaging, Inc.* 22,975 185,408 Steris Corp.*+ 6,731 147,678 Invacare Corp. 1,646 75,716 Datascope Corp. 1,103 41,142 Closure Medical Corp.* 2,270 32,325 Possis Medical, Inc.* 1,522 23,835 Conmed Corp.* 300 7,890 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,816,826 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- BIOTECHNOLOGY 2.4% United Therapeutics Corp.*+ 12,987 $ 453,636 Incyte Corp.*+ 44,387 427,447 Human Genome Sciences, Inc.* 37,583 410,031 NPS Pharmaceuticals, Inc.*+ 17,381 378,558 Vertex Pharmaceuticals, Inc.*+ 33,406 350,763 Lexicon Genetics, Inc./TX* 42,498 280,062 InterMune, Inc.* 21,451 252,907 Digene Corp.* 9,099 236,210 deCODE genetics, Inc.* 22,370 168,446 Ligand Pharmaceuticals, Inc. -- Class B* 10,496 105,170 Cepheid, Inc.* 11,489 99,035 Exelixis, Inc.* 11,850 95,511 Pharmion Corp.*+ 1,091 56,401 Onyx Pharmaceuticals, Inc.*+ 1,289 55,440 Encysive Pharmaceuticals, Inc.* 5,037 45,484 Cubist Pharmaceuticals, Inc.* 3,982 39,342 -------------- TOTAL BIOTECHNOLOGY 3,454,443 -------------- PHARMACEUTICALS 1.7% Connetics Corp.*+ 16,697 451,153 Perrigo Co. 21,339 438,516 Par Pharmaceutical Cos., Inc.*+ 11,391 409,279 Kos Pharmaceuticals, Inc.* 9,457 336,764 Impax Laboratories, Inc.* 19,699 302,577 First Horizon Pharmaceutical, Corp.* 12,132 242,761 Inspire Pharmaceuticals, Inc.* 10,080 158,558 KV Pharmaceutical Co.* 3,275 58,623 Alpharma, Inc. -- Class A 3,105 56,790 Barrier Therapeutics, Inc.* 651 7,916 Guilford Pharmaceuticals, Inc.*+ 5 25 -------------- TOTAL PHARMACEUTICALS 2,462,962 -------------- TOTAL HEALTH CARE 13,752,712 -------------- MATERIALS 4.8% CHEMICALS 2.1% OM Group, Inc.*+ 13,162 481,203 Millennium Chemicals, Inc.* 22,154 469,886 Georgia Gulf Corp. 10,412 464,271 Airgas, Inc. 17,394 418,674 Minerals Technologies, Inc. 6,576 387,063 PolyOne Corp.* 44,319 333,279 Ferro Corp. 9,069 197,795 Headwaters, Inc.* 3,819 117,854 Cambrex Corp. 3,840 84,288 Symyx Technologies, Inc.* 2,615 61,583 Terra Industries, Inc.* 3,809 32,986 -------------- TOTAL CHEMICALS 3,048,882 -------------- METALS & MINING 1.6% Carpenter Technology Corp. 10,167 485,373 Hecla Mining Co.* 62,527 465,201 Stillwater Mining Co.* 21,075 326,662 Century Aluminum Co.* 9,143 253,535 Allegheny Technologies, Inc. 10,394 189,690 Titanium Metals Corp.* 8,080 189,557 Coeur d'Alene Mines Corp.*+ 27,518 130,435 Oregon Steel Mills, Inc.* 6,411 106,615 AK Steel Holding Corp.* 8,235 67,198 Metal Management, Inc.* 2,370 43,087 Metals USA, Inc.* 2,020 35,835 -------------- TOTAL METALS & MINING 2,293,188 -------------- CONTAINERS & PACKAGING 0.5% AptarGroup, Inc. 9,869 433,940 Chesapeake Corp. 7,685 184,594 Longview Fibre Co. 5,360 81,740 Anchor Glass Container Corp. 7,149 58,693 -------------- TOTAL CONTAINERS & PACKAGING 758,967 -------------- PAPER & FOREST PRODUCTS 0.4% Potlatch Corp.+ 9,256 433,273 Wausau-Mosinee Paper Corp. 4,630 77,090 -------------- TOTAL PAPER & FOREST PRODUCTS 510,363 -------------- CONSTRUCTION MATERIALS 0.2% Eagle Materials, Inc. 3,320 236,716 Texas Industries, Inc.+ 2,070 106,481 -------------- TOTAL CONSTRUCTION MATERIALS 343,197 -------------- TOTAL MATERIALS 6,954,597 -------------- ENERGY 4.5% OIL & GAS 2.6% Tesoro Petroleum Corp.*+ 15,721 464,241 Cabot Oil & Gas Corp.+ 9,416 422,778 Meridian Resource Corp.* 44,485 392,803 Swift Energy Co.* 15,874 380,341 Magnum Hunter Resources, Inc.* 32,142 370,919 Giant Industries, Inc.* 12,572 305,500 Holly Corp. 11,568 294,984 Plains Exploration & Production Co.*+ 11,833 282,335 Callon Petroleum Co.* 19,711 249,935 Encore Acquisition Co.* 5,919 204,206 Southwestern Energy Co.* 3,282 137,811 Stone Energy Corp.* 2,390 104,586 Overseas Shipholding Group, Inc.+ 2,063 102,407 Atlas America, Inc.* 1,440 31,349 Syntroleum Corp.* 2,152 15,107 -------------- TOTAL OIL & GAS 3,759,302 -------------- See Notes to Financial Statements. 32 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- ENERGY EQUIPMENT & SERVICES 1.9% Unit Corp.*+ 15,041 $ 527,638 Cal Dive International, Inc.* 11,908 424,163 CARBO Ceramics, Inc. 5,329 384,434 Offshore Logistics, Inc.* 11,107 382,303 Universal Compression Holdings, Inc.* 10,501 357,769 Key Energy Services, Inc.* 31,892 352,407 Helmerich & Payne, Inc. 5,200 149,188 Todco -- Class A*+ 6,123 106,234 Hanover Compressor Co.*+ 7,831 105,327 Veritas DGC, Inc.*+ 2,670 60,823 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 2,850,286 -------------- TOTAL ENERGY 6,609,588 -------------- UTILITIES 2.1% GAS UTILITIES 0.9% Southern Union Co.*+ 21,201 434,613 Atmos Energy Corp. 7,490 188,673 Piedmont Natural Gas Co.+ 3,850 169,169 Nicor, Inc. 3,982 146,139 WGL Holdings, Inc. 5,004 141,413 Peoples Energy Corp.+ 3,336 139,045 -------------- TOTAL GAS UTILITIES 1,219,052 -------------- MULTI-UTILITIES 0.7% CMS Energy Corp.*+ 42,890 408,313 Energen Corp. 5,105 263,163 Avista Corp. 8,343 151,008 Calpine Corp.*+ 49,454 143,416 Aquila, Inc.*+ 30,283 94,483 -------------- TOTAL MULTI-UTILITIES 1,060,383 -------------- ELECTRIC UTILITIES 0.5% El Paso Electric Co.* 21,892 351,805 Idacorp, Inc. 5,226 151,868 Duquesne Light Holdings, Inc.+ 7,668 137,717 CH Energy Group, Inc. 1,280 58,624 Empire District Electric Co. 2,506 51,498 -------------- TOTAL ELECTRIC UTILITIES 751,512 -------------- TOTAL UTILITIES 3,030,947 -------------- CONSUMER STAPLES 1.9% FOOD & DRUG RETAILING 0.6% Longs Drug Stores Corp. 14,542 351,916 Ruddick Corp. 15,381 302,083 Wild Oats Markets, Inc.* 17,265 149,170 Central European Distribution Corp.* 4,928 110,091 -------------- TOTAL FOOD & DRUG RETAILING 913,260 -------------- FOOD PRODUCTS 0.6% Corn Products International, Inc.+ 9,430 434,723 Ralcorp Holdings, Inc.* 10,116 365,188 Sanderson Farms, Inc. 1,889 63,187 Cal-Maine Foods, Inc. 1,503 16,488 Lance, Inc. 490 7,913 -------------- TOTAL FOOD PRODUCTS 887,499 -------------- PERSONAL PRODUCTS 0.3% USANA Health Sciences, Inc.* 6,108 212,559 Nu Skin Enterprises, Inc. 8,257 194,122 -------------- TOTAL PERSONAL PRODUCTS 406,681 -------------- TOBACCO 0.2% Vector Group Ltd.+ 17,914 269,247 -------------- TOTAL TOBACCO 269,247 -------------- BEVERAGES 0.1% Robert Mondavi Corp. -- Class A* 4,484 175,638 -------------- TOTAL BEVERAGES 175,638 -------------- HOUSEHOLD PRODUCTS 0.1% Rayovac Corp.* 6,542 172,382 -------------- TOTAL HOUSEHOLD PRODUCTS 172,382 -------------- TOTAL CONSUMER STAPLES 2,824,707 -------------- TELECOMMUNICATION SERVICES 0.5% DIVERSIFIED TELECOMMUNICATION SERVICES 0.3% Golden Telecom, Inc. 11,533 329,037 PTEK Holdings, Inc.* 11,530 98,812 Time Warner Telecom, Inc. -- Class A* 10,650 51,120 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 478,969 -------------- WIRELESS TELECOMMUNICATION SERVICES 0.2% Alamosa Holdings, Inc.*+ 17,591 134,395 Arch Wireless, Inc. -- Class A* 1,960 56,311 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 190,706 -------------- TOTAL TELECOMMUNICATION SERVICES 669,675 -------------- TOTAL COMMON STOCKS (Cost $94,122,265) 99,567,983 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 33 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- MEKROS FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 14.9% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 129,281 $ 129,281 1.71% due 10/01/04 10,802,081 10,802,081 1.70% due 10/01/04 10,802,081 10,802,081 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $21,733,443) 21,733,443 -------------- SECURITIES LENDING COLLATERAL 7.2% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 10,494,337 10,494,337 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $10,494,337) 10,494,337 -------------- TOTAL INVESTMENTS 90.5% (Cost $126,350,045) $ 131,795,763 ============== OTHER ASSETS IN EXCESS OF LIABILITIES - 9.5% $ 13,764,310 ============== NET ASSETS - 100.0% $ 145,560,073 - -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) ----------- -------------- FUTURES CONTRACTS PURCHASED December 2004 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $81,424,060) 1,423 $ 1,088,411 ============== UNITS ----------- EQUITY INDEX SWAP AGREEMENTS October 2004 Russell 2000 Index Swap, Maturing 10/04/04** (Notional Market Value $2,620,230) 4,573 92,610 November 2004 Russell 2000 Index Swap, Maturing 11/22/04** (Notional Market Value $34,831,396) 60,794 $ 855,058 -------------- (TOTAL NOTIONAL MARKET VALUE $37,451,626) $ 947,668 ============== * NON-INCOME PRODUCING SECURITIES. ** PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. 34 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- INVERSE SMALL-CAP FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- FEDERAL AGENCY DISCOUNT NOTES 14.8% Farmer Mac* 1.83% due 12/15/04 $ 3,200,000 $ 3,187,800 Federal Home Loan Bank* 1.72% due 10/13/04 2,000,000 1,998,853 -------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $5,186,653) 5,186,653 -------------- REPURCHASE AGREEMENTS 79.5% Repurchase Agreement (Note 6) 1.72% due 10/01/04 165,140 165,140 1.71% due 10/01/04 13,798,362 13,798,362 1.70% due 10/01/04 13,798,362 13,798,362 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $27,761,864) 27,761,864 -------------- TOTAL INVESTMENTS 94.3% (Cost $32,948,517) $ 32,948,517 ============== OTHER ASSETS IN EXCESS OF LIABILITIES - 5.7% $ 1,989,292 ============== NET ASSETS - 100.0% $ 34,937,809 - -------------------------------------------------------------------------------- UNREALIZED LOSS CONTRACTS (NOTE 1) ----------- -------------- FUTURES CONTRACTS SOLD SHORT December 2004 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $16,593,800) 290 $ (82,736) ============== UNITS ----------- EQUITY INDEX SWAP AGREEMENT November 2004 Russell 2000 Index Swap, Maturing 11/22/04** (Notional Market Value $18,384,375) 32,088 $ (454,991) ============== * THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S. GOVERNMENT. ** PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 35 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- U.S. GOVERNMENT BOND FUND MARKET FACE VALUE AMOUNT (NOTE 1) ------------ -------------- U.S. TREASURY OBLIGATIONS 94.9% U.S. Treasury Bond 5.38% due 02/15/31 $135,891,000 $ 145,530,768 -------------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $136,912,662) 145,530,768 -------------- REPURCHASE AGREEMENTS 4.8% Repurchase Agreement (Note 6) 1.72% due 10/01/04 43,830 43,830 1.71% due 10/01/04 3,662,333 3,662,333 1.70% due 10/01/04 3,662,333 3,662,333 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $7,368,496) 7,368,496 -------------- TOTAL INVESTMENTS 99.7% (Cost $144,281,158) $ 152,899,264 ============== OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% $ 514,264 ============== NET ASSETS - 100.0% $ 153,413,528 - -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) ------------ -------------- FUTURES CONTRACTS PURCHASED December 2004 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $50,035,625) 446 $ 1,096,125 ============== See Notes to Financial Statements. 36 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP EUROPE FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 90.6% Repurchase Agreement (Note 6) 1.72% due 10/01/04+ $ 5,917,861 $ 5,917,861 1.71% due 10/01/04 12,374,084 12,374,084 1.70% due 10/01/04 12,374,084 12,374,084 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $30,666,029) 30,666,029 -------------- TOTAL INVESTMENTS 90.6% (Cost $30,666,029) $ 30,666,029 ============== OTHER ASSETS IN EXCESS OF LIABILITIES - 9.4% $ 3,182,877 ============== NET ASSETS - 100.0% $ 33,848,906 - -------------------------------------------------------------------------------- UNREALIZED GAIN CONTRACTS (NOTE 1) ----------- -------------- EQUITY INDEX SWAP AGREEMENT October 2004 Dow Jones Europe STOXX 50 Index Swap, Maturing 10/12/04* (Notional Market Value $42,001,719) 12,594 $ 635,606 ============== * PRICE RETURN BASED ON DOW JONES EUROPE STOXX 50 INDEX +/- FINANCING AT A VARIABLE RATE. + ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30, 2004. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 37 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP JAPAN FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- FEDERAL AGENCY DISCOUNT NOTES 24.4% Federal Home Loan Bank* 1.65% due 10/05/04 $10,000,000 $ 9,998,167 -------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $9,998,167) 9,998,167 -------------- REPURCHASE AGREEMENTS 93.4% Repurchase Agreement (Note 6) 1.72% due 10/01/04+ 2,333,666 2,333,666 1.71% due 10/01/04 17,967,813 17,967,813 1.70% due 10/01/04 17,967,813 17,967,813 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $38,269,292) 38,269,292 -------------- TOTAL INVESTMENTS 117.8% (Cost $48,267,459) $ 48,267,459 ============== LIABILITIES IN EXCESS OF OTHER ASSETS - (17.8)% $ (7,300,756) ============== NET ASSETS - 100.0% $ 40,966,703 - -------------------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) ----------- -------------- FUTURES CONTRACTS PURCHASED December 2004 Yen Currency Exchange Futures Contracts (Aggregate Market Value of Contracts $5,476,200) 48 $ 44,122 December 2004 Nikkei 225 Futures Contracts (Aggregate Market Value of Contracts $3,526,250) 65 1,068 -------------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $9,002,450) $ 45,190 ============== UNITS ----------- EQUITY INDEX SWAP AGREEMENT October 2004 Topix 100 Index Swap, Maturing 10/12/04** (Notional Market Value $47,826,248) 6,665,821 $ (1,534,044) ============== * THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S. GOVERNMENT. ** PRICE RETURN BASED ON TOPIX 100 INDEX +/- FINANCING AT A VARIABLE RATE. + ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30, 2004. See Notes to Financial Statements. 38 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 98.3% INDUSTRIALS 20.8% COMMERCIAL SERVICES & SUPPLIES 5.1% Waste Connections, Inc.* 23,459 $ 743,181 United Stationers, Inc.* 16,212 703,601 ABM Industries, Inc. 23,734 478,240 School Specialty, Inc.*+ 11,068 436,190 NCO Group, Inc.* 15,534 418,641 G & K Services, Inc. -- Class A 10,198 405,269 Ionics, Inc.*+ 11,049 298,323 Consolidated Graphics, Inc.* 6,631 277,839 Viad Corp. 10,810 256,521 Central Parking Corp. 17,826 235,660 Spherion Corp.* 29,748 232,629 Bowne & Co., Inc. 17,234 223,870 Volt Information Sciences, Inc.* 7,465 214,768 CDI Corp. 9,646 197,743 Mobile Mini, Inc.* 7,088 175,782 PRG-Schultz International, Inc.* 30,232 173,532 SOURCECORP, Inc.* 7,741 171,386 Standard Register Co. 13,933 146,296 Angelica Corp. 4,396 109,372 Insurance Auto Auctions, Inc.* 5,636 96,657 On Assignment, Inc.* 12,281 54,528 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 6,050,028 -------------- MACHINERY 4.7% Timken Co. 43,987 1,082,960 Mueller Industries, Inc. 17,041 731,911 Reliance Steel & Aluminum Co. 15,920 632,024 Albany International Corp. -- Class A 16,163 481,819 Watts Industries, Inc. -- Class A 15,791 423,988 JLG Industries, Inc. 21,290 357,672 Barnes Group, Inc. 11,346 311,675 Gardner Denver, Inc.* 9,677 266,795 Thomas Industries, Inc. 8,493 266,680 Stewart & Stevenson Services, Inc. 14,085 248,882 Valmont Industries, Inc. 11,705 244,283 Astec Industries, Inc.* 9,679 185,063 Robbins & Myers, Inc. 7,110 156,420 Wolverine Tube, Inc.* 7,275 84,026 Lydall, Inc.* 7,864 73,135 -------------- TOTAL MACHINERY 5,547,333 -------------- AEROSPACE & DEFENSE 2.8% Curtiss-Wright Corp. 10,428 596,794 DRS Technologies, Inc.* 13,242 495,781 Moog, Inc. -- Class A* 12,534 454,984 Esterline Technologies Corp.* 10,364 317,035 Cubic Corp. 13,080 299,532 Gencorp, Inc. 21,853 296,108 EDO Corp. 9,709 269,425 Triumph Group, Inc.* 7,787 263,434 AAR Corp.*+ 15,786 196,536 Kaman Corp. -- Class A 11,063 132,092 -------------- TOTAL AEROSPACE & DEFENSE 3,321,721 -------------- ROAD & RAIL 2.1% Yellow Roadway Corp.*+ 23,460 1,100,040 USF Corp.+ 13,573 487,135 Kansas City Southern* 30,602 464,232 Arkansas Best Corp. 12,124 443,981 -------------- TOTAL ROAD & RAIL 2,495,388 -------------- TRADING COMPANIES & DISTRIBUTORS 1.6% Hughes Supply, Inc. 30,028 902,942 Watsco, Inc. 13,058 392,132 Applied Industrial Technologies, Inc. 9,600 343,104 Lawson Products, Inc. 4,598 188,380 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 1,826,558 -------------- CONSTRUCTION & ENGINEERING 1.2% URS Corp.* 20,939 558,653 Shaw Group, Inc.*+ 31,118 373,416 EMCOR Group, Inc.* 7,441 279,930 Insituform Technologies, Inc. -- Class A* 13,075 244,110 -------------- TOTAL CONSTRUCTION & ENGINEERING 1,456,109 -------------- ELECTRICAL EQUIPMENT 1.1% Woodward Governor Co. 5,478 369,710 A.O. Smith Corp. 14,416 351,030 Regal-Beloit Corp. 11,918 288,296 C&D Technologies, Inc. 12,397 235,791 MagneTek, Inc.* 13,932 104,072 -------------- TOTAL ELECTRICAL EQUIPMENT 1,348,899 -------------- BUILDING PRODUCTS 0.8% Lennox International, Inc. 28,731 429,241 Universal Forest Products, Inc. 8,693 297,301 Apogee Enterprises, Inc.+ 13,325 172,292 -------------- TOTAL BUILDING PRODUCTS 898,834 -------------- AIRLINES 0.6% SkyWest, Inc. 28,483 428,669 Frontier Airlines, Inc.* 17,349 133,240 FLYi, Inc.*+ 22,118 86,482 Mesa Air Group, Inc.* 15,380 78,438 -------------- TOTAL AIRLINES 726,829 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 39 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- INDUSTRIAL CONGLOMERATES 0.4% Tredegar Corp. 18,734 $ 340,959 Standex International Corp. 5,958 145,971 -------------- TOTAL INDUSTRIAL CONGLOMERATES 486,930 -------------- MARINE 0.4% Kirby Corp.* 12,034 483,165 -------------- TOTAL MARINE 483,165 -------------- TOTAL INDUSTRIALS 24,641,794 -------------- FINANCIALS 20.6% BANKS 6.1% South Financial Group, Inc. 34,445 971,349 Whitney Holding Corp. 19,976 838,992 United Bankshares, Inc. 21,160 733,194 Chittenden Corp. 22,530 613,942 Susquehanna Bancshares, Inc. 22,668 557,633 Provident Bankshares Corp. 16,112 540,558 Umpqua Holding Corp.+ 21,404 482,874 Republic Bancorp, Inc./MI 31,280 481,712 Community Bank System, Inc. 14,945 375,568 Irwin Financial Corp. 13,785 355,929 First Republic Bank+ 7,687 353,602 Boston Private Financial Holdings, Inc. 13,400 334,464 Riggs National Corp.+ 14,326 318,037 Sterling Bancshares, Inc./TX 21,901 294,568 -------------- TOTAL BANKS 7,252,422 -------------- THRIFTS & MORTGAGE FINANCE 4.7% Downey Financial Corp.+ 13,623 748,720 MAF Bancorp, Inc. 15,877 684,775 Flagstar Bancorp, Inc. 29,841 635,016 BankAtlantic Bancorp, Inc.-- Class A 29,243 535,732 Commercial Federal Corp. 19,399 523,385 Brookline Bancorp, Inc. 28,871 452,408 Waypoint Financial Corp. 16,310 449,667 Bankunited Financial Corp. -- Class A* 14,634 426,581 FirstFed Financial Corp.* 8,008 391,431 Sterling Financial Corp./WA* 11,050 389,402 Anchor BanCorp Wisconsin, Inc. 11,223 290,676 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 5,527,793 -------------- REAL ESTATE 4.2% Shurgard Storage Centers, Inc. -- Class A 22,454 871,215 Capital Automotive REIT 18,684 584,249 Colonial Properties Trust 13,240 532,513 Kilroy Realty Corp. 13,915 529,187 Lexington Corporate Properties Trust 23,591 512,161 Gables Residential Trust 14,283 487,764 Commercial Net Lease Realty 25,296 460,893 Entertainment Properties Trust+ 11,936 451,181 Glenborough Realty Trust, Inc. 15,623 324,490 Sovran Self Storage, Inc. 7,394 289,697 -------------- TOTAL REAL ESTATE 5,043,350 -------------- INSURANCE 4.1% UICI 22,607 740,153 Delphi Financial Group, Inc. -- Class A 15,429 619,783 Philadelphia Consolidated Holding Co.* 10,831 597,005 Selective Insurance Group, Inc. 13,578 505,102 ProAssurance Corp.* 14,265 499,560 RLI Corp. 12,271 460,776 LandAmerica Financial Group, Inc. 8,908 405,314 Zenith National Insurance Corp. 9,452 399,914 Stewart Information Services Corp. 8,845 348,493 Presidential Life Corp. 14,299 245,657 SCPIE Holdings, Inc. 4,885 43,818 -------------- TOTAL INSURANCE 4,865,575 -------------- CAPITAL MARKETS 0.7% Piper Jaffray Cos., Inc.* 9,691 383,667 Investment Technology Group, Inc.* 20,420 312,426 SWS Group, Inc. 8,350 134,268 -------------- TOTAL CAPITAL MARKETS 830,361 -------------- CONSUMER FINANCE 0.5% Cash America International, Inc. 13,804 337,646 World Acceptance Corp.* 9,033 210,017 -------------- TOTAL CONSUMER FINANCE 547,663 -------------- DIVERSIFIED FINANCIALS 0.3% Financial Federal Corp.*+ 8,469 317,418 -------------- TOTAL DIVERSIFIED FINANCIALS 317,418 -------------- TOTAL FINANCIALS 24,384,582 -------------- CONSUMER DISCRETIONARY 14.4% SPECIALTY RETAIL 4.5% Zale Corp.* 25,360 712,616 Men's Wearhouse, Inc.*+ 17,670 513,313 Linens `N Things, Inc.* 22,078 511,547 Burlington Coat Factory Warehouse Corp. 21,784 462,474 PEP Boys-Manny Moe & Jack+ 29,361 411,054 Jo-Ann Stores, Inc.* 10,975 307,739 Too, Inc.* 16,830 304,118 Group 1 Automotive, Inc.*+ 11,124 303,463 Movie Gallery, Inc. 15,741 275,940 Dress Barn, Inc.* 14,459 252,310 TBC Corp.* 10,850 242,389 See Notes to Financial Statements. 40 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Cato Corp. -- Class A 10,050 223,613 Gymboree Corp.* 14,950 215,280 Haverty Furniture Cos., Inc. 11,035 193,554 Building Material Holding Corp. 6,599 181,604 Goody's Family Clothing, Inc. 16,134 135,848 Hancock Fabrics, Inc./DE 9,202 110,240 -------------- TOTAL SPECIALTY RETAIL 5,357,102 -------------- HOUSEHOLD DURABLES 3.5% M.D.C. Holdings, Inc. 15,866 1,159,805 Standard-Pacific Corp. 16,444 926,948 Meritage Homes Corp.* 6,345 498,717 La-Z-Boy, Inc.+ 25,349 384,798 Russ Berrie & Co., Inc. 10,166 204,845 Interface, Inc. -- Class A* 25,311 202,994 Skyline Corp. 4,087 163,684 National Presto Industries, Inc. 3,368 140,850 Libbey, Inc. 6,750 126,225 Department 56, Inc.* 6,566 107,026 Bassett Furniture Industries, Inc. 5,657 106,804 Fedders Corp. 14,930 61,064 Enesco Group, Inc.* 6,953 47,628 Applica, Inc.* 11,733 47,401 -------------- TOTAL HOUSEHOLD DURABLES 4,178,789 -------------- HOTELS RESTAURANTS & LEISURE 2.8% Jack in the Box, Inc.* 17,944 569,363 Aztar Corp.* 16,849 446,498 IHOP Corp.+ 9,909 378,623 Landry's Restaurants, Inc. 13,495 368,279 Ryan's Restaurant Group, Inc.* 20,361 302,157 Marcus Corp. 14,595 284,165 Lone Star Steakhouse & Saloon, Inc. 10,680 275,864 Prime Hospitality Corp.* 21,747 264,661 Pinnacle Entertainment, Inc.* 17,352 239,458 O'Charleys, Inc.* 10,370 169,031 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 3,298,099 -------------- TEXTILES & APPAREL 1.4% Kellwood Co. 13,460 490,617 Phillips-Van Heusen Corp. 14,988 333,933 Russell Corp. 15,968 268,901 Brown Shoe Co., Inc. 8,858 221,982 Stride Rite Corp. 18,465 189,266 Haggar Corp. 3,544 60,744 Ashworth, Inc.* 6,605 54,161 -------------- TOTAL TEXTILES & APPAREL 1,619,604 -------------- LEISURE EQUIPMENT & PRODUCTS 0.9% Nautilus Group, Inc.+ 15,970 360,762 K2, Inc.* 22,737 325,367 Jakks Pacific, Inc.* 12,799 294,377 Action Performance Cos., Inc. 8,985 91,018 Meade Instruments Corp.* 9,722 30,235 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 1,101,759 -------------- MEDIA 0.4% Information Holdings, Inc.* 10,201 277,773 4Kids Entertainment, Inc.* 6,580 132,916 -------------- TOTAL MEDIA 410,689 -------------- INTERNET & CATALOG RETAIL 0.3% Insight Enterprises, Inc.* 23,631 397,946 -------------- TOTAL INTERNET & CATALOG RETAIL 397,946 -------------- MULTILINE RETAIL 0.2% ShopKo Stores, Inc.* 14,305 249,050 -------------- TOTAL MULTILINE RETAIL 249,050 -------------- AUTO COMPONENTS 0.2% Standard Motor Products, Inc. 9,679 146,250 Tower Automotive, Inc.*+ 28,374 59,302 -------------- TOTAL AUTO COMPONENTS 205,552 -------------- AUTOMOBILES 0.1% Coachmen Industries, Inc. 7,651 120,733 -------------- TOTAL AUTOMOBILES 120,733 -------------- DISTRIBUTORS 0.1% Advanced Marketing Services, Inc. 9,337 100,746 -------------- TOTAL DISTRIBUTORS 100,746 -------------- TOTAL CONSUMER DISCRETIONARY 17,040,069 -------------- INFORMATION TECHNOLOGY 12.0% ELECTRONIC EQUIPMENT & INSTRUMENTS 3.9% Anixter International, Inc.*+ 18,088 634,708 Benchmark Electronics, Inc.* 20,061 597,818 Paxar Corp.* 19,382 439,584 Technitrol, Inc.* 19,713 384,403 Coherent, Inc.* 14,778 383,341 Aeroflex, Inc.* 36,230 382,951 Checkpoint Systems, Inc.* 18,365 285,943 Agilsys, Inc. 15,771 272,681 Electro Scientific Industries, Inc.* 13,753 238,614 CTS Corp. 17,661 222,529 Methode Electronics, Inc. -- Class A 17,338 221,753 Park Electrochemical Corp. 9,690 205,428 Radisys Corp.* 9,209 128,466 Bell Microproducts, Inc.* 13,667 106,056 Planar Systems, Inc.* 7,138 80,017 Gerber Scientific, Inc.* 10,865 71,600 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 4,655,892 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 41 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.3% Skyworks Solutions, Inc.*+ 75,921 $ 721,249 Exar Corp.*+ 20,091 284,489 Photronics, Inc.* 15,945 265,006 Actel Corp.* 12,680 192,736 Ultratech, Inc.* 11,570 181,302 Standard Microsystems Corp.* 9,007 157,713 Cohu, Inc. 10,518 155,456 Dupont Photomasks, Inc.* 8,999 153,343 Rudolph Technologies, Inc.*+ 8,160 136,598 ESS Technologies, Inc.*+ 19,320 132,342 Pericom Semiconductor Corp.* 12,915 124,759 Supertex, Inc.* 6,279 122,001 Alliance Semiconductor Corp.* 17,198 59,505 Three-Five Systems, Inc.* 10,589 29,014 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2,715,513 -------------- IT CONSULTING & SERVICES 1.8% CACI International, Inc. -- Class A*+ 14,260 752,643 eFunds Corp.* 23,531 437,441 MAXIMUS, Inc.* 10,570 304,522 Mantech International Corp. -- Class A* 15,780 295,402 Ciber, Inc.* 29,426 221,283 Pegasus Solutions, Inc.* 10,875 129,630 -------------- TOTAL IT CONSULTING & SERVICES 2,140,921 -------------- SOFTWARE 1.5% Internet Security Systems, Inc.*+ 23,042 391,714 THQ, Inc.*+ 19,105 371,783 Verity, Inc.* 18,013 232,008 JDA Software Group, Inc.* 14,143 153,027 EPIQ Systems, Inc.*+ 8,690 135,390 SPSS, Inc.* 8,600 114,638 NYFIX, Inc.* 15,795 96,034 Roxio, Inc.*+ 16,955 87,149 Captaris, Inc.* 15,362 65,442 Phoenix Technologies, Ltd.* 12,014 59,950 QRS Corp.* 7,810 54,045 Radiant Systems, Inc.* 12,890 51,818 -------------- TOTAL SOFTWARE 1,812,998 -------------- COMMUNICATIONS EQUIPMENT 1.5% Belden CDT, Inc. 22,926 499,787 Black Box Corp.+ 8,546 315,775 Symmetricom, Inc.* 21,928 207,439 Audiovox Corp. -- Class A* 11,240 189,281 C-COR, Inc.* 20,950 177,027 Digi International, Inc.* 10,615 121,329 PC-Tel, Inc.* 10,214 84,368 Network Equipment Technologies, Inc.* 11,887 78,573 Brooktrout, Inc.* 6,330 57,350 Tollgrade Communications, Inc.* 6,434 56,555 SCM Microsystems, Inc.* 7,496 20,539 -------------- TOTAL COMMUNICATIONS EQUIPMENT 1,808,023 -------------- COMPUTERS & PERIPHERALS 0.8% Adaptec, Inc.*+ 53,706 408,166 Hutchinson Technology, Inc.*+ 12,746 340,700 Pinnacle Systems, Inc.* 33,542 139,870 -------------- TOTAL COMPUTERS & PERIPHERALS 888,736 -------------- INTERNET SOFTWARE & SERVICES 0.2% Digital Insight Corp.*+ 17,261 235,267 -------------- TOTAL INTERNET SOFTWARE & SERVICES 235,267 -------------- TOTAL INFORMATION TECHNOLOGY 14,257,350 -------------- MATERIALS 8.2% METALS & MINING 3.3% Steel Dynamics, Inc.+ 24,220 935,376 Commercial Metals Co. 14,240 565,613 Carpenter Technology Corp. 11,588 553,211 Cleveland-Cliffs, Inc.*+ 5,250 424,568 Quanex Corp. 8,011 410,804 Ryerson Tull, Inc. 12,205 209,560 RTI International Metals, Inc.* 10,360 200,673 Brush Engineered Materials, Inc.* 9,288 192,355 Steel Technologies, Inc. 6,263 160,439 Imco Recycling, Inc.* 7,608 86,731 A.M. Castle & Co.* 7,676 77,911 Commonwealth Industries, Inc.* 7,930 74,066 -------------- TOTAL METALS & MINING 3,891,307 -------------- CHEMICALS 2.2% OM Group, Inc.*+ 13,801 504,565 H.B. Fuller Co. 13,932 381,737 PolyOne Corp.* 44,727 336,347 A. Schulman, Inc. 14,772 325,575 Arch Chemicals, Inc. 11,381 324,928 Cambrex Corp. 12,753 279,928 Wellman, Inc. 15,617 132,432 Quaker Chemical Corp. 4,739 114,447 Material Sciences Corp.* 6,966 93,971 Penford Corp. 4,262 74,201 -------------- TOTAL CHEMICALS 2,568,131 -------------- CONTAINERS & PACKAGING 1.4% AptarGroup, Inc. 17,759 780,863 Rock-Tenn Co. -- Class A 17,422 274,222 See Notes to Financial Statements. 42 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Caraustar Industries, Inc.* 13,927 $ 233,556 Chesapeake Corp. 9,525 228,791 Myers Industries, Inc. 16,284 178,310 -------------- TOTAL CONTAINERS & PACKAGING 1,695,742 -------------- PAPER & FOREST PRODUCTS 0.8% Wausau-Mosinee Paper Corp. 25,195 419,497 Schweitzer-Mauduit International, Inc. 7,226 234,122 Buckeye Technologies, Inc.* 18,082 201,614 Pope & Talbot, Inc. 7,773 136,805 -------------- TOTAL PAPER & FOREST PRODUCTS 992,038 -------------- CONSTRUCTION MATERIALS 0.5% Texas Industries, Inc.+ 10,365 533,176 -------------- TOTAL CONSTRUCTION MATERIALS 533,176 -------------- TOTAL MATERIALS 9,680,394 -------------- UTILITIES 7.9% GAS UTILITIES 4.5% UGI Corp. 24,919 928,482 Piedmont Natural Gas Co.+ 18,688 821,151 Southern Union Co.*+ 39,966 819,308 Atmos Energy Corp. 30,571 770,084 New Jersey Resources Corp. 13,540 560,556 Northwest Natural Gas Co. 13,391 424,896 Southwest Gas Corp. 17,277 413,784 Laclede Group, Inc. 10,274 300,309 Cascade Natural Gas Corp. 5,459 115,895 NUI Corp. 7,810 104,185 -------------- TOTAL GAS UTILITIES 5,258,650 -------------- ELECTRIC UTILITIES 2.1% Allete, Inc.+ 14,403 468,097 Unisource Energy Corp. 16,770 408,350 Cleco Corp. 22,964 395,899 El Paso Electric Co.* 23,271 373,965 CH Energy Group, Inc. 7,675 351,515 UIL Holding Corp. 7,121 350,282 Central Vermont Public Service Corp. 5,934 119,333 Green Mountain Power Corp. 2,524 65,750 -------------- TOTAL ELECTRIC UTILITIES 2,533,191 -------------- MULTI-UTILITIES 1.1% Energen Corp. 17,716 913,260 Avista Corp. 23,634 427,775 -------------- TOTAL MULTI-UTILITIES 1,341,035 -------------- WATER UTILITIES 0.2% American States Water Co. 8,174 203,533 -------------- TOTAL WATER UTILITIES 203,533 -------------- TOTAL UTILITIES 9,336,409 -------------- HEALTH CARE 5.7% HEALTH CARE PROVIDERS & SERVICES 3.1% AMERIGROUP Corp.* 12,180 685,125 Province Healthcare Co.*+ 24,232 506,933 Owens & Minor, Inc. 19,199 487,655 Sunrise Senior Living, Inc.*+ 10,019 351,867 Chemed Corp. 6,040 336,670 Parexel International Corp.* 12,755 249,998 Cross Country Healthcare, Inc.* 15,627 242,218 Gentiva Health Services, Inc.* 11,914 195,032 RehabCare Group, Inc.* 7,962 183,365 Hooper Holmes, Inc. 31,762 142,294 OCA, Inc.*+ 24,478 116,026 CryoLife, Inc.*+ 11,374 82,575 Curative Health Services, Inc.* 6,300 43,281 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 3,623,039 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.1% Invacare Corp. 15,191 698,786 Conmed Corp.* 14,584 383,559 Sola International, Inc.* 15,729 299,637 Analogic Corp.+ 6,643 276,947 Datascope Corp. 7,176 267,665 Viasys Healthcare, Inc.* 15,096 252,556 Vital Signs, Inc. 6,182 197,700 Theragenics Corp.* 14,630 53,400 Osteotech, Inc.* 8,350 32,899 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,463,149 -------------- PHARMACEUTICALS 0.4% Alpharma, Inc. -- Class A 25,632 468,809 -------------- TOTAL PHARMACEUTICALS 468,809 -------------- BIOTECHNOLOGY 0.1% Savient Pharmaceuticals, Inc.* 29,464 67,768 Arqule, Inc.* 14,105 65,165 -------------- TOTAL BIOTECHNOLOGY 132,933 -------------- TOTAL HEALTH CARE 6,687,930 -------------- ENERGY 4.6% ENERGY EQUIPMENT & SERVICES 2.5% Lone Star Technologies, Inc.*+ 14,186 536,231 Oceaneering International, Inc.*+ 12,315 453,685 SEACOR Holdings, Inc.* 8,930 417,477 Offshore Logistics, Inc.* 11,151 383,817 Veritas DGC, Inc.*+ 16,320 371,770 Atwood Oceanics, Inc.* 6,789 322,749 W-H Energy Services, Inc.* 13,421 278,486 Dril-Quip, Inc.* 8,484 189,193 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 2,953,408 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 43 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- OIL & GAS 2.1% Cimarex Energy Co.* 20,229 $ 706,801 Spinnaker Exploration Co.*+ 16,583 581,068 Stone Energy Corp.* 12,964 567,305 Remington Oil & Gas Corp.* 13,433 352,616 Swift Energy Co.* 13,674 327,629 -------------- TOTAL OIL & GAS 2,535,419 -------------- TOTAL ENERGY 5,488,827 -------------- CONSUMER STAPLES 3.8% FOOD PRODUCTS 2.2% Corn Products International, Inc. 18,036 831,460 Flowers Foods, Inc. 21,371 552,440 Ralcorp Holdings, Inc.* 14,281 515,544 Hain Celestial Group, Inc.* 17,831 315,252 American Italian Pasta Co. -- Class A+ 8,835 231,035 J&J Snack Foods Corp.* 4,393 188,372 -------------- TOTAL FOOD PRODUCTS 2,634,103 -------------- FOOD & DRUG RETAILING 1.5% Performance Food Group Co.*+ 22,627 536,260 Casey's General Stores, Inc. 24,463 454,767 Longs Drug Stores Corp. 18,211 440,707 Nash Finch Co. 5,976 187,945 Great Atlantic & Pacific Tea Co.* 18,851 114,991 -------------- TOTAL FOOD & DRUG RETAILING 1,734,670 -------------- TOBACCO 0.1% DIMON, Inc. 22,083 130,069 -------------- TOTAL TOBACCO 130,069 -------------- TOTAL CONSUMER STAPLES 4,498,842 -------------- TELECOMMUNICATION SERVICES 0.3% DIVERSIFIED TELECOMMUNICATION SERVICES 0.2% General Communication -- Class A* 28,034 253,708 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 253,708 -------------- WIRELESS TELECOMMUNICATION SERVICES 0.1% Boston Communications Group, Inc.* 8,587 75,308 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 75,308 -------------- TOTAL TELECOMMUNICATION SERVICES 329,016 -------------- TOTAL COMMON STOCKS (Cost $110,353,049) 116,345,213 -------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 1.4% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 9,852 $ 9,852 1.71% due 10/01/04 823,208 823,208 1.70% due 10/01/04 823,208 823,208 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $1,656,268) 1,656,268 ------------- SECURITIES LENDING COLLATERAL 6.9% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 8,100,047 8,100,047 ------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $8,100,047) 8,100,047 ------------- TOTAL INVESTMENTS 106.6% (Cost $120,109,364) $ 126,101,528 ============= LIABILITIES IN EXCESS OF OTHER ASSETS - (6.6)% $ (7,785,679) ============= NET ASSETS - 100.0% $ 118,315,849 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. REIT - REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. 44 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 98.1% FINANCIALS 24.5% INSURANCE 7.6% Fidelity National Financial, Inc. 17,535 $ 668,083 Old Republic International Corp. 18,403 460,627 Everest Re Group Ltd. 5,664 421,005 W.R. Berkley Corp. 8,515 358,992 Unitrin, Inc. 6,901 286,875 First American Corp. 8,930 275,312 Protective Life Corp. 6,994 274,934 American Financial Group, Inc./OH+ 7,474 223,398 HCC Insurance Holdings, Inc.+ 6,564 197,905 Stancorp Financial Group, Inc. 2,775 197,580 AmerUs Group Co.+ 3,843 157,563 Allmerica Financial Corp.* 5,419 145,663 Ohio Casualty Corp.* 6,166 129,054 Horace Mann Educators Corp. 4,278 75,207 -------------- TOTAL INSURANCE 3,872,198 -------------- THRIFTS & MORTGAGE FINANCE 5.2% New York Community Bancorp, Inc.+ 26,690 548,213 Radian Group, Inc.+ 9,408 434,932 PMI Group, Inc. 9,708 393,951 Independence Community Bank Corp. 8,510 332,315 Astoria Financial Corp. 7,736 274,551 Webster Financial Corp. 5,402 266,805 IndyMac Bancorp, Inc. 6,147 222,521 Washington Federal, Inc. 7,910 198,936 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 2,672,224 -------------- BANKS 4.7% Banknorth Group, Inc. 17,471 611,485 Hibernia Corp. -- Class A 15,678 414,056 Mercantile Bankshares Corp. 7,968 382,145 Associated Banc-Corp 11,075 355,175 Colonial BancGroup, Inc.+ 13,507 276,218 FirstMerit Corp.+ 8,587 225,881 Greater Bay Bancorp+ 5,142 147,833 -------------- TOTAL BANKS 2,412,793 -------------- REAL ESTATE 3.9% Developers Diversified Realty Corp. 10,312 403,715 Liberty Property Trust 8,613 343,142 AMB Property Corp. 8,389 310,561 Hospitality Properties Trust 6,791 288,549 Mack-Cali Realty Corp. 6,090 269,787 New Plan Excel Realty Trust 10,365 259,125 Highwoods Properties, Inc. 5,459 134,346 -------------- TOTAL REAL ESTATE 2,009,225 -------------- CAPITAL MARKETS 1.4% A.G. Edwards, Inc.+ 7,979 276,233 Jefferies Group, Inc.+ 5,730 197,513 Raymond James Financial, Inc. 7,483 180,490 LaBranche & Co., Inc.* 6,025 50,911 -------------- TOTAL CAPITAL MARKETS 705,147 -------------- DIVERSIFIED FINANCIALS 1.0% Leucadia National Corp. 7,121 403,405 GATX Corp. 4,871 129,861 -------------- TOTAL DIVERSIFIED FINANCIALS 533,266 -------------- CONSUMER FINANCE 0.7% AmeriCredit Corp.* 15,880 331,574 -------------- TOTAL CONSUMER FINANCE 331,574 -------------- TOTAL FINANCIALS 12,536,427 -------------- CONSUMER DISCRETIONARY 14.8% HOUSEHOLD DURABLES 6.2% D.R. Horton, Inc.+ 23,535 779,244 Lennar Corp. -- Class A+ 15,740 749,224 Mohawk Industries, Inc.* 6,750 535,883 Toll Brothers, Inc.* 7,574 350,903 Hovnanian Enterprises, Inc. -- Class A*+ 6,140 246,214 Ryland Group, Inc.+ 2,352 217,936 American Greetings Corp. -- Class A*+ 6,885 172,951 Furniture Brands International, Inc.+ 5,556 139,345 -------------- TOTAL HOUSEHOLD DURABLES 3,191,700 -------------- SPECIALTY RETAIL 2.4% Foot Locker, Inc.+ 15,708 372,279 Barnes & Noble, Inc.*+ 7,051 260,887 Borders Group, Inc. 7,717 191,381 AnnTaylor Stores Corp.*+ 7,164 167,638 Pier 1 Imports, Inc. 8,820 159,466 Payless Shoesource, Inc.*+ 6,875 69,644 -------------- TOTAL SPECIALTY RETAIL 1,221,295 -------------- AUTO COMPONENTS 2.0% Lear Corp.+ 6,922 376,903 BorgWarner, Inc. 5,656 244,848 ArvinMeritor, Inc. 6,990 131,063 Modine Manufacturing Co. 3,424 103,097 Bandag, Inc. 1,858 81,380 Superior Industries International, Inc. 2,612 78,229 -------------- TOTAL AUTO COMPONENTS 1,015,520 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 45 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- HOTELS RESTAURANTS & LEISURE 1.6% Caesars Entertainment, Inc.* 31,273 $ 522,259 CBRL Group, Inc.+ 4,814 173,689 Bob Evans Farms, Inc. 3,502 95,114 Six Flags, Inc.* 9,436 51,332 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 842,394 -------------- MEDIA 1.5% Belo Corp. -- Class A 11,619 261,892 Entercom Communications Corp.* 4,922 160,753 Media General, Inc.+ 2,350 131,482 Scholastic Corp.* 3,985 123,097 Emmis Communications Corp. -- Class A*+ 5,675 102,491 -------------- TOTAL MEDIA 779,715 -------------- MULTILINE RETAIL 0.9% Neiman-Marcus Group, Inc. -- Class A+ 4,868 279,910 Saks, Inc.* 14,361 173,050 -------------- TOTAL MULTILINE RETAIL 452,960 -------------- LEISURE EQUIPMENT & PRODUCTS 0.2% Callaway Golf Co. 7,619 80,533 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 80,533 -------------- TOTAL CONSUMER DISCRETIONARY 7,584,117 -------------- UTILITIES 11.7% ELECTRIC UTILITIES 6.4% Wisconsin Energy Corp.+ 11,860 378,334 Pepco Holdings, Inc. 18,723 372,588 Alliant Energy Corp. 11,463 285,199 NSTAR 5,409 265,582 Northeast Utilities 12,919 250,499 Puget Energy, Inc. 10,020 227,454 OGE Energy Corp.+ 8,840 223,033 Great Plains Energy, Inc.+ 7,529 219,470 Hawaiian Electric Industries, Inc.+ 8,098 214,921 Westar Energy, Inc. 8,679 175,316 WPS Resources Corp. 3,674 165,293 Duquesne Light Holdings, Inc.+ 7,736 138,939 PNM Resources, Inc. 6,076 136,771 Idacorp, Inc. 3,764 109,382 Black Hills Corp.+ 3,244 90,118 -------------- TOTAL ELECTRIC UTILITIES 3,252,899 -------------- MULTI-UTILITIES 4.6% SCANA Corp.+ 11,313 422,427 Questar Corp. 8,512 390,020 Energy East Corp. 14,798 372,614 MDU Resources Group, Inc. 11,847 311,932 Oneok, Inc. 10,440 271,649 National Fuel Gas Co.+ 8,385 237,547 Vectren Corp. 7,689 193,609 Sierra Pacific Resources Corp.*+ 11,836 105,932 Aquila, Inc.*+ 23,760 74,131 -------------- TOTAL MULTI-UTILITIES 2,379,861 -------------- GAS UTILITIES 0.7% AGL Resources, Inc. 6,588 202,713 WGL Holdings, Inc. 4,805 135,789 -------------- TOTAL GAS UTILITIES 338,502 -------------- TOTAL UTILITIES 5,971,262 -------------- INDUSTRIALS 11.3% MACHINERY 3.2% Pentair, Inc.+ 10,096 352,451 SPX Corp. 7,695 272,403 AGCO Corp.*+ 9,082 205,435 Harsco Corp. 4,129 185,392 Kennametal, Inc. 3,602 162,630 Trinity Industries, Inc.+ 4,673 145,658 Flowserve Corp.* 5,610 135,650 Federal Signal Corp. 4,759 88,422 Tecumseh Products Co. -- Class A 1,771 74,152 -------------- TOTAL MACHINERY 1,622,193 -------------- COMMERCIAL SERVICES & SUPPLIES 2.9% Republic Services, Inc. 15,359 457,084 Manpower, Inc. 9,070 403,524 Laureate Education, Inc.*+ 4,536 168,830 Adesa, Inc.* 9,595 157,646 United Rentals, Inc.*+ 7,843 124,625 Banta Corp. 2,460 97,785 Kelly Services, Inc. 3,489 93,191 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,502,685 -------------- AEROSPACE & DEFENSE 2.3% L-3 Communications Holdings, Inc. 10,786 722,662 Precision Castparts Corp.+ 6,586 395,489 Sequa Corp. -- Class A* 992 51,793 -------------- TOTAL AEROSPACE & DEFENSE 1,169,944 -------------- CONSTRUCTION & ENGINEERING 0.6% Dycom Industries, Inc.* 4,800 136,272 Granite Construction, Inc. 4,166 99,567 Quanta Services, Inc.* 11,830 71,572 -------------- TOTAL CONSTRUCTION & ENGINEERING 307,411 -------------- ROAD & RAIL 0.6% Werner Enterprises, Inc. 7,980 154,094 Swift Transportation Co., Inc.*+ 8,048 135,367 -------------- TOTAL ROAD & RAIL 289,461 -------------- See Notes to Financial Statements. 46 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- AIR FREIGHT & COURIERS 0.4% CNF, Inc. 5,116 $ 209,705 -------------- TOTAL AIR FREIGHT & COURIERS 209,705 -------------- INDUSTRIAL CONGLOMERATES 0.3% Teleflex, Inc. 4,048 172,040 -------------- TOTAL INDUSTRIAL CONGLOMERATES 172,040 -------------- ELECTRICAL EQUIPMENT 0.3% Thomas & Betts Corp. 5,848 156,843 -------------- TOTAL ELECTRICAL EQUIPMENT 156,843 -------------- MARINE 0.3% Alexander & Baldwin, Inc. 4,259 144,550 -------------- TOTAL MARINE 144,550 -------------- BUILDING PRODUCTS 0.3% York International Corp.+ 4,152 131,162 -------------- TOTAL BUILDING PRODUCTS 131,162 -------------- AIRLINES 0.1% Alaska Air Group, Inc.* 2,631 65,196 -------------- TOTAL AIRLINES 65,196 -------------- TOTAL INDUSTRIALS 5,771,190 -------------- INFORMATION TECHNOLOGY 9.5% COMMUNICATIONS EQUIPMENT 2.4% Harris Corp.+ 6,711 368,702 Polycom, Inc.* 10,010 198,398 Utstarcom, Inc.*+ 11,527 185,700 3Com Corp.*+ 39,767 167,817 Advanced Fibre Communications, Inc.* 8,920 141,828 CommScope, Inc.*+ 5,499 118,779 Powerwave Technologies, Inc.* 10,558 65,037 -------------- TOTAL COMMUNICATIONS EQUIPMENT 1,246,261 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.1% Arrow Electronics, Inc.* 11,676 263,644 Tech Data Corp.* 5,755 221,855 Vishay Intertechnology, Inc.*+ 16,749 216,062 Avnet, Inc.*+ 12,222 209,241 KEMET Corp.* 8,735 70,666 Newport Corp.* 4,271 48,988 Plexus Corp.* 4,316 47,649 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,078,105 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.6% Intersil Corp. -- Class A 15,188 241,945 Fairchild Semiconductor International, Inc.* 12,020 170,323 RF Micro Devices, Inc.* 18,810 119,255 Integrated Device Technology, Inc.* 10,720 102,162 Credence Systems Corp.*+ 9,641 69,415 Lattice Semiconductor Corp.* 11,483 56,382 Triquint Semiconductor, Inc.* 13,843 53,988 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 813,470 -------------- SOFTWARE 1.2% Cadence Design Systems, Inc.*+ 27,200 354,688 Sybase, Inc.* 9,610 132,522 Ascential Software Corp.* 5,821 78,409 Advent Software, Inc.*+ 3,310 55,707 -------------- TOTAL SOFTWARE 621,326 -------------- IT CONSULTING & SERVICES 1.2% CheckFree Corp.*+ 8,759 242,361 BISYS Group, Inc.* 12,236 178,768 Keane, Inc.*+ 6,196 95,171 MPS Group, Inc.* 10,641 89,491 -------------- TOTAL IT CONSULTING & SERVICES 605,791 -------------- COMPUTERS & PERIPHERALS 1.0% Storage Technology Corp.*+ 11,172 282,205 Imation Corp. 3,518 125,205 McData Corp. -- Class A* 11,956 60,139 Quantum Corp.*+ 18,390 42,481 -------------- TOTAL COMPUTERS & PERIPHERALS 510,030 -------------- TOTAL INFORMATION TECHNOLOGY 4,874,983 -------------- ENERGY 9.1% ENERGY EQUIPMENT & SERVICES 5.4% Weatherford International Ltd.*+ 13,502 688,872 ENSCO International, Inc. 15,285 499,361 Cooper Cameron Corp.* 5,578 305,897 National-Oilwell, Inc.* 8,682 285,291 Pride International, Inc.*+ 13,726 271,638 Varco International, Inc.* 9,844 264,016 Tidewater, Inc. 6,092 198,295 Helmerich & Payne, Inc. 5,070 145,458 Hanover Compressor Co.* 7,870 105,851 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 2,764,679 -------------- OIL & GAS 3.7% Pioneer Natural Resources Co. 14,557 501,925 Newfield Exploration Co.* 6,246 382,505 Noble Energy, Inc. 5,795 337,501 Pogo Producing Co. 6,493 308,093 Overseas Shipholding Group, Inc. 3,870 192,107 Forest Oil Corp.*+ 5,845 176,051 -------------- TOTAL OIL & GAS 1,898,182 -------------- TOTAL ENERGY 4,662,861 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 47 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- MATERIALS 6.5% CHEMICALS 3.5% Cabot Corp. 6,193 $ 238,864 Lubrizol Corp.+ 6,607 228,602 RPM International, Inc. 11,731 207,052 Cytec Industries, Inc. 3,942 192,961 Airgas, Inc. 7,563 182,041 FMC Corp.* 3,605 175,095 Albemarle Corp. 4,162 146,045 Minerals Technologies, Inc. 2,069 121,781 Crompton Corp. 11,588 109,970 Sensient Technologies Corp.+ 4,646 100,540 Ferro Corp. 4,194 91,471 -------------- TOTAL CHEMICALS 1,794,422 -------------- METALS & MINING 1.1% Peabody Energy Corp. 6,524 388,178 Arch Coal, Inc. 5,575 197,857 -------------- TOTAL METALS & MINING 586,035 -------------- PAPER & FOREST PRODUCTS 0.8% Bowater, Inc.+ 5,642 215,468 Potlatch Corp.+ 2,941 137,668 Glatfelter 4,468 55,359 -------------- TOTAL PAPER & FOREST PRODUCTS 408,495 -------------- CONTAINERS & PACKAGING 0.7% Sonoco Products Co. 9,879 261,201 Longview Fibre Co. 5,129 78,217 -------------- TOTAL CONTAINERS & PACKAGING 339,418 -------------- CONSTRUCTION MATERIALS 0.4% Martin Marietta Materials, Inc. 4,768 215,847 -------------- TOTAL CONSTRUCTION MATERIALS 215,847 -------------- TOTAL MATERIALS 3,344,217 -------------- CONSUMER STAPLES 5.5% FOOD PRODUCTS 3.4% Tyson Foods, Inc. -- Class A+ 35,686 571,690 Dean Foods Co.*+ 15,906 477,498 Smithfield Foods, Inc.* 11,122 278,050 J.M. Smucker Co. 5,793 257,267 Lancaster Colony Corp. 3,530 148,843 -------------- TOTAL FOOD PRODUCTS 1,733,348 -------------- BEVERAGES 1.3% Constellation Brands, Inc. -- Class A*+ 10,818 411,733 PepsiAmericas, Inc. 13,932 266,101 -------------- TOTAL BEVERAGES 677,834 -------------- FOOD & DRUG RETAILING 0.6% BJ's Wholesale Club, Inc.*+ 7,012 191,708 Ruddick Corp. 4,633 90,992 -------------- TOTAL FOOD & DRUG RETAILING 282,700 -------------- TOBACCO 0.2% Universal Corp./Richmond VA 2,514 112,225 -------------- TOTAL TOBACCO 112,225 -------------- TOTAL CONSUMER STAPLES 2,806,107 -------------- HEALTH CARE 4.3% HEALTH CARE PROVIDERS & SERVICES 2.6% Pacificare Health Systems, Inc.* 8,697 319,180 Health Net, Inc.* 11,079 273,873 Triad Hospitals, Inc.* 7,757 267,151 Universal Health Services, Inc. -- Class B+ 5,770 250,995 Community Health Systems, Inc.* 8,795 234,651 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,345,850 -------------- BIOTECHNOLOGY 1.4% Millennium Pharmaceuticals, Inc.*+ 30,846 422,899 Invitrogen Corp.* 5,274 290,017 -------------- TOTAL BIOTECHNOLOGY 712,916 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 0.3% Steris Corp.* 6,960 152,702 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 152,702 -------------- TOTAL HEALTH CARE 2,211,468 -------------- TELECOMMUNICATION SERVICES 0.9% WIRELESS TELECOMMUNICATION SERVICES 0.9% Telephone & Data Systems, Inc. 5,682 478,254 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 478,254 -------------- TOTAL TELECOMMUNICATION SERVICES 478,254 -------------- TOTAL COMMON STOCKS (Cost $47,454,531) 50,240,886 -------------- See Notes to Financial Statements. 48 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP VALUE FUND MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 0.8% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 2,355 $ 2,355 1.71% due 10/01/04 196,801 196,801 1.70% due 10/01/04 196,801 196,801 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $395,957) 395,957 -------------- SECURITIES LENDING COLLATERAL 9.5% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 4,875,792 4,875,792 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $4,875,792) 4,875,792 -------------- TOTAL INVESTMENTS 108.4% (Cost $52,726,280) $ 55,512,635 ============== LIABILITIES IN EXCESS OF OTHER ASSETS - (8.4)% $ (4,286,251) ============== NET ASSETS - 100.0% $ 51,226,384 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 49 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 98.1% FINANCIALS 35.5% BANKS 11.0% Bank of America Corp.+ 86,342 $ 3,741,199 Wells Fargo & Co. 35,880 2,139,524 Wachovia Corp.+ 27,802 1,305,304 U.S. Bancorp+ 39,942 1,154,324 Fifth Third Bancorp 12,090 595,070 National City Corp. 14,078 543,692 SunTrust Banks, Inc. 7,560 532,300 BB&T Corp.+ 11,775 467,350 PNC Financial Services Group, Inc. 6,004 324,816 SouthTrust Corp. 7,108 296,119 KeyCorp 8,591 271,476 M&T Bank Corp. 2,532 242,312 Comerica, Inc.+ 3,676 218,171 Marshall & Ilsley Corp.+ 4,690 189,007 AmSouth Bancorp+ 7,493 182,829 Synovus Financial Corp. 6,590 172,329 Huntington Bancshares, Inc. 4,851 120,838 Zions Bancorporation 1,904 116,220 First Horizon National Corp. 2,573 111,565 -------------- TOTAL BANKS 12,724,445 -------------- INSURANCE 8.3% American International Group, Inc. 55,317 3,761,003 Allstate Corp.+ 14,687 704,829 MetLife, Inc. 15,942 616,158 Prudential Financial, Inc. 10,974 516,217 St. Paul Travelers Cos., Inc. 14,186 468,989 AFLAC, Inc.+ 10,726 420,566 Progressive Corp. 4,647 393,833 Hartford Financial Services Group, Inc. 6,185 383,037 Chubb Corp.+ 4,010 281,823 ACE Ltd.+ 6,014 240,921 Loews Corp. 3,979 232,772 XL Capital Ltd. 2,976 220,194 Aon Corp. 6,684 192,098 Ambac Financial Group, Inc. 2,348 187,723 MBIA, Inc. 3,028 176,260 Lincoln National Corp. 3,717 174,699 Cincinnati Financial Corp. 3,534 145,672 Jefferson-Pilot Corp. 2,897 143,865 Torchmark Corp. 2,370 126,037 SAFECO Corp.+ 2,694 122,981 UnumProvident Corp.+ 6,319 99,145 -------------- TOTAL INSURANCE 9,608,822 -------------- DIVERSIFIED FINANCIALS 7.2% Citigroup, Inc. 109,953 4,851,126 J.P. Morgan Chase & Co. 75,651 3,005,614 Regions Financial Corp.+ 9,838 325,244 Principal Financial Group, Inc.+ 6,616 237,978 -------------- TOTAL DIVERSIFIED FINANCIALS 8,419,962 -------------- CAPITAL MARKETS 4.9% Morgan Stanley 23,368 1,152,042 Merrill Lynch & Co., Inc. 19,972 993,008 Goldman Sachs Group, Inc. 10,296 959,999 Bank of New York Co., Inc. 16,526 482,063 Lehman Brothers Holdings, Inc. 5,760 459,187 State Street Corp. 7,159 305,761 Franklin Resources, Inc. 5,327 297,034 Charles Schwab Corp.+ 29,031 266,795 Mellon Financial Corp. 9,014 249,598 Bear Stearns Cos., Inc.+ 2,218 213,305 Northern Trust Corp. 4,678 190,862 E*Trade Financial Corp.* 7,907 90,298 Janus Capital Group, Inc.+ 5,134 69,874 -------------- TOTAL CAPITAL MARKETS 5,729,826 -------------- THRIFTS & MORTGAGE FINANCE 2.4% Freddie Mac 14,565 950,221 Washington Mutual, Inc. 18,569 725,676 Countrywide Financial Corp. 11,946 470,553 Golden West Financial Corp. 3,200 355,040 Sovereign Bancorp, Inc.+ 7,316 159,635 MGIC Investment Corp. 2,176 144,813 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 2,805,938 -------------- CONSUMER FINANCE 1.0% MBNA Corp. 27,089 682,643 Capital One Financial Corp.+ 5,141 379,920 Providian Financial Corp.*+ 6,177 95,990 -------------- TOTAL CONSUMER FINANCE 1,158,553 -------------- REAL ESTATE 0.7% Equity Office Properties Trust+ 8,536 232,606 Equity Residential 5,983 185,473 ProLogis 3,848 135,604 Plum Creek Timber (REIT) Co., Inc. 3,858 135,146 Apartment Investment & Management Co. -- Class A 2,035 70,777 -------------- TOTAL REAL ESTATE 759,606 -------------- TOTAL FINANCIALS 41,207,152 -------------- See Notes to Financial Statements. 50 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- ENERGY 12.9% OIL & GAS 12.1% Exxon Mobil Corp. 138,107 $ 6,674,711 ChevronTexaco Corp. 45,248 2,427,103 ConocoPhillips 14,651 1,213,835 Occidental Petroleum Corp. 8,332 466,009 Devon Energy Corp. 5,142 365,133 Anadarko Petroleum Corp. 5,347 354,827 Apache Corp. 6,966 349,066 Burlington Resources, Inc.+ 8,376 341,741 Marathon Oil Corp. 7,343 303,119 Unocal Corp.+ 5,639 242,477 Valero Energy Corp.+ 2,704 216,888 Kerr-McGee Corp. 3,174 181,712 Amerada Hess Corp. 2,004 178,356 EOG Resources, Inc.+ 2,511 165,349 Kinder Morgan, Inc. 2,573 161,636 Williams Cos., Inc. 11,118 134,528 El Paso Corp.+ 13,652 125,462 Sunoco, Inc. 1,691 125,100 Ashland, Inc. 1,547 86,756 -------------- TOTAL OIL & GAS 14,113,808 -------------- ENERGY EQUIPMENT & SERVICES 0.8% Baker Hughes, Inc.+ 7,129 311,680 Transocean, Inc.*+ 6,825 244,198 Nabors Industries Ltd.* 3,159 149,579 Noble Corp.*+ 2,855 128,332 Rowan Cos., Inc.* 2,228 58,819 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 892,608 -------------- TOTAL ENERGY 15,006,416 -------------- CONSUMER DISCRETIONARY 12.6% MEDIA 5.7% Time Warner, Inc.*+ 97,142 1,567,872 Comcast Corp. -- Class A* 47,498 1,341,343 Viacom, Inc. -- Class B 36,855 1,236,854 Walt Disney Co. 43,683 985,052 Gannett Co., Inc. 5,622 470,899 Clear Channel Communications, Inc.+ 12,524 390,373 Tribune Co.+ 6,788 279,326 Univision Communications, Inc. -- Class A*+ 6,856 216,718 Interpublic Group of Cos., Inc.*+ 8,960 94,886 -------------- TOTAL MEDIA 6,583,323 -------------- HOTELS RESTAURANTS & LEISURE 2.0% McDonald's Corp. 26,627 746,355 Carnival Corp.+ 13,478 637,375 Marriott International, Inc. -- Class A 4,821 250,499 Starwood Hotels & Resorts Worldwide, Inc. 4,464 207,219 Hilton Hotels Corp. 8,160 153,734 Harrah's Entertainment, Inc. 2,379 126,040 Wendy's International, Inc. 2,390 80,304 Darden Restaurants, Inc. 3,363 78,425 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 2,279,951 -------------- MULTILINE RETAIL 1.5% Target Corp. 19,183 868,031 JC Penney Holding Co., Inc.+ 6,103 215,314 Sears Roebuck and Co.+ 4,507 179,604 Federated Department Stores, Inc.+ 3,828 173,906 May Department Stores Co. 6,177 158,317 Nordstrom, Inc. 2,986 114,185 Dillard's, Inc./AR -- Class A 1,752 34,584 Big Lots, Inc.* 2,401 29,364 -------------- TOTAL MULTILINE RETAIL 1,773,305 -------------- AUTOMOBILES 0.9% Ford Motor Co.+ 38,896 546,489 General Motors Corp.+ 11,999 509,717 -------------- TOTAL AUTOMOBILES 1,056,206 -------------- HOUSEHOLD DURABLES 0.7% Pulte Homes, Inc.+ 2,693 165,270 Centex Corp. 2,663 134,375 Newell Rubbermaid, Inc. 5,833 116,893 Leggett & Platt, Inc.+ 4,031 113,271 KB Home+ 1,062 89,728 Whirlpool Corp. 1,440 86,530 Stanley Works 1,742 74,087 Snap-On, Inc. 1,256 34,615 -------------- TOTAL HOUSEHOLD DURABLES 814,769 -------------- SPECIALTY RETAIL 0.6% Limited Brands, Inc.+ 10,014 223,212 Office Depot, Inc.*+ 6,663 100,145 AutoNation, Inc.*+ 5,673 96,895 Tiffany & Co. 3,150 96,831 Toys `R' Us, Inc.* 4,517 80,131 Circuit City Stores, Inc. 4,190 64,275 Boise Cascade Corp. 1,883 62,666 -------------- TOTAL SPECIALTY RETAIL 724,155 -------------- LEISURE EQUIPMENT & PRODUCTS 0.5% Eastman Kodak Co.+ 6,136 197,702 Mattel, Inc.+ 8,794 159,435 Brunswick Corp. 2,044 93,533 Hasbro, Inc.+ 3,706 69,673 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 520,343 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 51 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- AUTO COMPONENTS 0.3% Johnson Controls, Inc. 4,018 $ 228,262 Dana Corp. 3,169 56,060 Goodyear Tire & Rubber Co.*+ 3,696 39,695 Cooper Tire & Rubber Co. 1,680 33,886 Visteon Corp.+ 2,715 21,693 -------------- TOTAL AUTO COMPONENTS 379,596 -------------- TEXTILES & APPAREL 0.3% VF Corp. 2,359 116,653 Jones Apparel Group, Inc. 2,683 96,051 Liz Claiborne, Inc. 2,269 85,587 Reebok International Ltd. 1,266 46,487 -------------- TOTAL TEXTILES & APPAREL 344,778 -------------- DISTRIBUTORS 0.1% Genuine Parts Co. 3,686 141,469 -------------- TOTAL DISTRIBUTORS 141,469 -------------- TOTAL CONSUMER DISCRETIONARY 14,617,895 -------------- INDUSTRIALS 8.6% AEROSPACE & DEFENSE 2.1% Honeywell International, Inc. 18,219 653,333 Lockheed Martin Corp. 9,420 525,448 General Dynamics Corp. 4,292 438,213 Northrop Grumman Corp.+ 7,656 408,294 Raytheon Co. 9,609 364,950 Goodrich Corp. 2,521 79,059 -------------- TOTAL AEROSPACE & DEFENSE 2,469,297 -------------- MACHINERY 2.0% Illinois Tool Works, Inc.+ 6,432 599,269 Deere & Co. 5,314 343,019 Ingersoll-Rand Co. -- Class A 3,776 256,655 Paccar, Inc.+ 3,696 255,467 Eaton Corp. 3,180 201,644 Dover Corp. 4,334 168,462 ITT Industries, Inc. 2,025 161,980 Parker Hannifin Corp. 2,531 148,975 Cummins, Inc. 1,011 74,703 Pall Corp. 2,683 65,680 Crane Co. 1,266 36,613 -------------- TOTAL MACHINERY 2,312,467 -------------- INDUSTRIAL CONGLOMERATES 1.3% Tyco International Ltd.+ 42,681 1,308,599 Textron, Inc. 2,976 191,268 -------------- TOTAL INDUSTRIAL CONGLOMERATES 1,499,867 -------------- COMMERCIAL SERVICES & SUPPLIES 0.9% Cendant Corp.+ 22,389 483,602 Waste Management, Inc. 12,335 337,239 RR Donnelley & Sons Co. 4,647 145,544 Allied Waste Industries, Inc.*+ 6,795 60,136 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,026,521 -------------- ROAD & RAIL 0.9% Union Pacific Corp. 5,508 322,769 Burlington Northern Santa Fe Corp. 7,958 304,871 Norfolk Southern Corp.+ 8,333 247,824 CSX Corp.+ 4,527 150,296 -------------- TOTAL ROAD & RAIL 1,025,760 -------------- AIR FREIGHT & COURIERS 0.5% FedEx Corp.+ 6,339 543,189 Ryder System, Inc.+ 1,316 61,905 -------------- TOTAL AIR FREIGHT & COURIERS 605,094 -------------- ELECTRICAL EQUIPMENT 0.3% Rockwell Automation, Inc.+ 3,879 150,117 Cooper Industries Ltd. -- Class A 2,025 119,475 American Power Conversion Corp.+ 4,303 74,829 Power-One, Inc.* 1,852 12,001 -------------- TOTAL ELECTRICAL EQUIPMENT 356,422 -------------- BUILDING PRODUCTS 0.3% Masco Corp.+ 9,223 318,470 -------------- TOTAL BUILDING PRODUCTS 318,470 -------------- AIRLINES 0.2% Southwest Airlines Co. 16,739 227,985 -------------- TOTAL AIRLINES 227,985 -------------- TRADING COMPANIES & DISTRIBUTORS 0.1% W.W. Grainger, Inc. 2,014 116,107 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 116,107 -------------- CONSTRUCTION & ENGINEERING 0.0% Fluor Corp.+ 1,752 77,999 -------------- TOTAL CONSTRUCTION & ENGINEERING 77,999 -------------- TOTAL INDUSTRIALS 10,035,989 -------------- TELECOMMUNICATION SERVICES 6.4% DIVERSIFIED TELECOMMUNICATION SERVICES 5.7% Verizon Communications, Inc. 58,794 2,315,308 SBC Communications, Inc.+ 70,410 1,827,139 BellSouth Corp. 38,921 1,055,538 Sprint Corp.+ 30,859 621,192 Alltel Corp.+ 6,523 358,178 AT&T Corp.+ 16,870 241,578 CenturyTel, Inc. 2,888 98,885 Citizens Communications Co.+ 7,063 94,574 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 6,612,392 -------------- See Notes to Financial Statements. 52 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- WIRELESS TELECOMMUNICATION SERVICES 0.7% AT&T Wireless Services, Inc.* 57,932 $ 856,235 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 856,235 -------------- TOTAL TELECOMMUNICATION SERVICES 7,468,627 -------------- INFORMATION TECHNOLOGY 6.3% COMPUTERS & PERIPHERALS 2.2% Hewlett-Packard Co.+ 64,170 1,203,187 EMC Corp./MA* 51,020 588,771 Apple Computer, Inc.* 8,236 319,145 Sun Microsystems, Inc.* 70,628 285,337 NCR Corp.* 2,045 101,412 QLogic Corp.*+ 2,030 60,108 Gateway, Inc.*+ 7,869 38,952 -------------- TOTAL COMPUTERS & PERIPHERALS 2,596,912 -------------- COMMUNICATIONS EQUIPMENT 1.5% Motorola, Inc. 50,169 905,049 Corning, Inc.*+ 29,594 327,901 JDS Uniphase Corp.*+ 30,572 103,028 Scientific-Atlanta, Inc. 3,300 85,536 Tellabs, Inc.*+ 8,840 81,240 Comverse Technology, Inc.*+ 4,161 78,352 Andrew Corp.* 3,460 42,350 ADC Telecommunications, Inc.* 17,194 31,121 CIENA Corp.* 12,133 24,023 -------------- TOTAL COMMUNICATIONS EQUIPMENT 1,678,600 -------------- IT CONSULTING & SERVICES 0.9% Electronic Data Systems Corp. 10,830 209,994 Computer Sciences Corp.* 4,000 188,400 Affiliated Computer Services, Inc. -- Class A*+ 2,766 153,983 SunGard Data Systems, Inc.* 6,166 146,566 Fiserv, Inc.* 4,161 145,052 Unisys Corp.*+ 7,140 73,685 Sabre Holdings Corp.+ 2,888 70,842 Convergys Corp.* 3,018 40,532 -------------- TOTAL IT CONSULTING & SERVICES 1,029,054 -------------- SOFTWARE 0.8% Computer Associates International, Inc.+ 12,474 328,066 Veritas Software Corp.* 9,170 163,226 PeopleSoft, Inc.* 7,809 155,009 Siebel Systems, Inc.* 10,772 81,221 BMC Software, Inc.* 4,700 74,307 Novell, Inc.*+ 8,190 51,679 Compuware Corp.* 8,182 42,137 -------------- TOTAL SOFTWARE 895,645 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 0.4% Micron Technology, Inc.*+ 12,993 156,306 Advanced Micro Devices, Inc.*+ 7,513 97,669 Novellus Systems, Inc.* 3,060 81,365 Nvidia Corp.* 3,513 51,009 LSI Logic Corp.*+ 8,150 35,126 Applied Micro Circuits Corp.*+ 6,652 20,821 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 442,296 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Molex, Inc. 4,010 119,578 Jabil Circuit, Inc.*+ 4,303 98,969 Sanmina-SCI Corp.* 11,027 77,740 Tektronix, Inc. 2,039 67,797 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 364,084 -------------- OFFICE ELECTRONICS 0.2% Xerox Corp.*+ 17,821 250,920 -------------- TOTAL OFFICE ELECTRONICS 250,920 -------------- TOTAL INFORMATION TECHNOLOGY 7,257,511 -------------- UTILITIES 5.4% ELECTRIC UTILITIES 3.8% Exelon Corp. 14,034 514,908 Southern Co.+ 15,684 470,206 TXU Corp. 6,283 301,081 Entergy Corp. 4,861 294,625 FirstEnergy Corp.+ 7,008 287,889 FPL Group, Inc.+ 3,969 271,162 American Electric Power Co., Inc.+ 8,365 267,346 PG&E Corp.* 8,560 260,224 Progress Energy, Inc.+ 5,195 219,956 Consolidated Edison, Inc.+ 5,154 216,674 Ameren Corp.+ 4,140 191,061 PPL Corp. 3,997 188,579 Edison International+ 6,967 184,695 DTE Energy Co.+ 3,674 155,006 Cinergy Corp.+ 3,827 151,549 Xcel Energy, Inc.+ 8,496 147,151 Pinnacle West Capital Corp. 2,014 83,581 CenterPoint Energy, Inc.+ 6,512 67,464 TECO Energy, Inc. 4,237 57,327 Allegheny Energy, Inc.*+ 2,694 42,996 -------------- TOTAL ELECTRIC UTILITIES 4,373,480 -------------- MULTI-UTILITIES 1.3% Duke Energy Corp.+ 19,902 455,557 Dominion Resources, Inc./VA+ 6,976 455,184 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 53 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Public Service Enterprise Group, Inc.+ 5,012 $ 213,511 Sempra Energy+ 4,950 179,140 Constellation Energy Group, Inc.+ 3,734 148,762 Dynegy, Inc. -- Class A*+ 8,020 40,020 CMS Energy Corp.* 3,392 32,292 Calpine Corp.*+ 9,424 27,330 -------------- TOTAL MULTI-UTILITIES 1,551,796 -------------- GAS UTILITIES 0.3% KeySpan Corp.+ 3,362 131,791 NiSource, Inc. 5,640 118,496 Peoples Energy Corp. 840 35,011 Nicor, Inc. 942 34,571 -------------- TOTAL GAS UTILITIES 319,869 -------------- TOTAL UTILITIES 6,245,145 -------------- HEALTH CARE 4.4% HEALTH CARE PROVIDERS & SERVICES 2.5% HCA, Inc. 10,232 390,351 WellPoint Health Networks, Inc.* 3,320 348,899 Aetna, Inc. 3,290 328,770 Caremark Rx, Inc.*+ 9,888 317,108 Anthem, Inc.*+ 2,987 260,616 CIGNA Corp. 2,907 202,414 Quest Diagnostics, Inc. 2,208 194,790 Medco Health Solutions, Inc.* 5,802 179,282 McKesson Corp.+ 6,188 158,722 AmerisourceBergen Corp.+ 2,480 133,201 Tenet Healthcare Corp.* 9,863 106,422 Health Management Associates, Inc. -- Class A 5,164 105,500 Humana, Inc.* 3,372 67,372 Manor Care, Inc. 1,894 56,744 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 2,850,191 -------------- BIOTECHNOLOGY 0.9% Biogen Idec, Inc.*+ 7,190 439,813 Genzyme Corp.*+ 4,829 262,746 Chiron Corp.*+ 4,010 177,242 Medimmune, Inc.*+ 5,316 125,989 Applera Corp. - Applied Biosystems Group 4,315 81,424 -------------- TOTAL BIOTECHNOLOGY 1,087,214 -------------- PHARMACEUTICALS 0.6% Schering-Plough Corp.+ 31,250 595,625 Watson Pharmaceuticals, Inc.* 2,349 69,201 King Pharmaceuticals, Inc.*+ 5,154 61,539 -------------- TOTAL PHARMACEUTICALS 726,365 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 0.4% Fisher Scientific International, Inc.*+ 2,391 139,467 Hospira, Inc.* 3,320 101,592 Thermo Electron Corp.* 3,513 94,921 Bausch & Lomb, Inc.+ 1,214 80,671 PerkinElmer, Inc. 2,704 46,563 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 463,214 -------------- TOTAL HEALTH CARE 5,126,984 -------------- MATERIALS 3.5% METALS & MINING 1.3% Alcoa, Inc. 18,510 621,751 Newmont Mining Corp.+ 9,374 426,798 Phelps Dodge Corp.+ 2,034 187,189 Nucor Corp.+ 1,721 157,248 United States Steel Corp. 2,390 89,912 Worthington Industries, Inc. 1,883 40,202 -------------- TOTAL METALS & MINING 1,523,100 -------------- PAPER & FOREST PRODUCTS 1.0% International Paper Co.+ 10,328 417,354 Weyerhaeuser Co. 5,052 335,857 Georgia-Pacific Corp.+ 5,468 196,574 MeadWestvaco Corp. 4,313 137,585 Louisiana-Pacific Corp.+ 2,348 60,931 -------------- TOTAL PAPER & FOREST PRODUCTS 1,148,301 -------------- CHEMICALS 1.0% Air Products & Chemicals, Inc. 4,830 262,655 PPG Industries, Inc. 3,655 223,978 Rohm & Haas Co.+ 4,809 206,643 Monsanto Co. 5,660 206,137 Eastman Chemical Co. 1,701 80,883 Engelhard Corp. 2,673 75,780 Great Lakes Chemical Corp. 1,093 27,981 -------------- TOTAL CHEMICALS 1,084,057 -------------- CONTAINERS & PACKAGING 0.1% Temple-Inland, Inc. 1,234 82,863 Bemis Co. 2,238 59,486 -------------- TOTAL CONTAINERS & PACKAGING 142,349 -------------- CONSTRUCTION MATERIALS 0.1% Vulcan Materials Co. 2,197 111,937 -------------- TOTAL CONSTRUCTION MATERIALS 111,937 -------------- TOTAL MATERIALS 4,009,744 -------------- CONSUMER STAPLES 2.5% FOOD & DRUG RETAILING 1.2% Costco Wholesale Corp.+ 9,801 407,330 CVS Corp. 8,484 357,431 Kroger Co.*+ 15,728 244,099 See Notes to Financial Statements. 54 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP VALUE FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Albertson's, Inc.+ 7,827 $ 187,300 Safeway, Inc.*+ 9,497 183,387 Supervalu, Inc. 2,855 78,655 Winn-Dixie Stores, Inc.+ 3,117 9,631 -------------- TOTAL FOOD & DRUG RETAILING 1,467,833 -------------- FOOD PRODUCTS 0.8% General Mills, Inc. 8,119 364,543 ConAgra Foods, Inc.+ 11,193 287,772 Archer-Daniels-Midland Co. 13,842 235,037 -------------- TOTAL FOOD PRODUCTS 887,352 -------------- BEVERAGES 0.2% Coca-Cola Enterprises, Inc. 10,001 189,019 Adolph Coors Co. -- Class B 840 57,053 -------------- TOTAL BEVERAGES 246,072 -------------- TOBACCO 0.2% Reynolds American, Inc.+ 3,178 216,231 -------------- TOTAL TOBACCO 216,231 -------------- PERSONAL PRODUCTS 0.1% Alberto-Culver Co. -- Class B 2,004 87,134 -------------- TOTAL PERSONAL PRODUCTS 87,134 -------------- TOTAL CONSUMER STAPLES 2,904,622 -------------- TOTAL COMMON STOCKS (Cost $109,576,330) 113,880,085 -------------- FACE AMOUNT ----------- REPURCHASE AGREEMENTS 1.2% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 7,963 7,963 1.71% due 10/01/04 665,409 665,409 1.70% due 10/01/04 665,409 665,409 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $1,338,781) 1,338,781 -------------- SECURITIES LENDING COLLATERAL 13.4% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 15,604,006 15,604,006 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $15,604,006) 15,604,006 -------------- TOTAL INVESTMENTS 112.7% (Cost $126,519,117) $ 130,822,872 ============== LIABILITIES IN EXCESS OF OTHER ASSETS - (12.7)% $ (14,700,554) ============== NET ASSETS - 100.0% $ 116,122,318 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. REIT - REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 55 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 98.0% HEALTH CARE 19.0% HEALTH CARE EQUIPMENT & SUPPLIES 9.7% Cooper Cos., Inc.+ 13,213 $ 905,751 Respironics, Inc.* 14,173 757,405 Idexx Laboratories, Inc.* 13,951 707,874 ResMed, Inc.*+ 13,749 654,590 Mentor Corp.+ 17,153 577,713 Advanced Medical Optics, Inc.*+ 14,452 571,866 American Medical Systems Holdings, Inc.* 13,648 495,013 Diagnostic Products Corp. 11,930 487,579 Sybron Dental Specialties, Inc.* 15,769 468,182 Integra LifeSciences Holdings Corp.*+ 11,628 373,375 PolyMedica Corp. 11,115 342,342 Haemonetics Corp./MA* 10,200 334,968 Biosite, Inc.*+ 6,461 316,331 Immucor, Inc.* 12,097 299,401 Arthocare Corp.* 8,860 259,509 Cyberonics, Inc.*+ 9,719 198,851 SurModics, Inc.* 7,154 169,907 Merit Medical Systems Inc.* 10,736 162,221 Hologic, Inc.* 8,270 159,363 DJ Orthopedics, Inc.* 8,849 156,185 Wilson Greatbatch Technologies, Inc.* 8,683 155,339 ICU Medical, Inc.* 5,658 147,334 Kensey Nash Corp.* 4,760 124,664 Possis Medical, Inc.* 7,399 115,868 BioLase Technology, Inc.+ 9,909 80,857 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 9,022,488 -------------- HEALTH CARE PROVIDERS & SERVICES 6.1% Pharmaceutical Product Development, Inc.* 22,956 826,416 Cerner Corp.*+ 14,675 634,840 Pediatrix Medical Group, Inc.* 9,755 535,062 Sierra Health Services, Inc.*+ 10,970 525,792 Accredo Health, Inc.* 19,698 464,282 United Surgical Partners International, Inc.* 11,528 395,987 American Healthways, Inc.*+ 13,281 386,610 Priority Healthcare Corp. -- Class B* 17,710 356,856 Centene Corp.* 8,247 351,157 Dendrite International, Inc.* 16,897 272,380 Odyssey HealthCare, Inc.* 14,854 263,659 AmSurg Corp.* 12,287 260,239 NDCHealth Corp.+ 14,620 234,651 LabOne, Inc.* 6,953 203,236 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 5,711,167 -------------- PHARMACEUTICALS 2.1% Medicis Pharmaceutical Corp. -- Class A+ 23,068 900,575 MGI Pharma, Inc.* 28,704 766,110 Noven Pharmaceuticals, Inc.* 9,519 198,376 Bradley Pharmaceuticals, Inc.*+ 6,350 129,222 -------------- TOTAL PHARMACEUTICALS 1,994,283 -------------- BIOTECHNOLOGY 1.1% Techne Corp.* 16,718 638,293 Regeneron Pharmaceuticals, Inc.* 22,633 196,455 Enzo Biochem, Inc.* 12,511 187,665 -------------- TOTAL BIOTECHNOLOGY 1,022,413 -------------- TOTAL HEALTH CARE 17,750,351 -------------- CONSUMER DISCRETIONARY 18.8% HOTELS RESTAURANTS & LEISURE 4.9% Sonic Corp.* 24,228 620,964 CEC Entertainment, Inc.* 14,911 547,979 P.F. Chang's China Bistro, Inc.*+ 10,490 508,660 Argosy Gaming Co.* 11,919 467,225 Panera Bread Co. -- Class A*+ 12,265 460,428 Rare Hospitality International, Inc.* 13,793 367,583 Shuffle Master, Inc.*+ 9,375 351,188 WMS Industries, Inc.*+ 12,254 314,805 Triarc Cos. -- Class B 26,047 298,759 Papa John's International, Inc.* 6,787 208,225 Steak N Shake Co.* 11,093 189,468 Multimedia Games, Inc.* 11,383 176,437 Bally Total Fitness Holding Corp.* 13,806 50,254 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 4,561,975 -------------- SPECIALTY RETAIL 4.0% Tractor Supply Co.* 15,491 487,037 Guitar Center, Inc.*+ 10,321 446,899 Aaron Rents, Inc. 20,144 438,333 Electronics Boutique Holdings Corp.*+ 9,598 327,292 HOT Topic, Inc.*+ 18,917 322,346 Cost Plus, Inc.*+ 8,905 315,059 Select Comfort Corp.* 14,909 271,344 Children's Place Retail Stores, Inc.* 10,959 262,030 Stein Mart, Inc.* 17,130 260,719 Christopher & Banks Corp. 14,856 237,844 See Notes to Financial Statements. 56 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Genesco, Inc.*+ 8,873 $ 208,959 Hibbett Sporting Goods, Inc.* 9,530 195,270 -------------- TOTAL SPECIALTY RETAIL 3,773,132 -------------- TEXTILES & APPAREL 2.7% Fossil, Inc.*+ 28,726 888,782 Quiksilver, Inc.*+ 23,068 586,389 Wolverine World Wide, Inc.+ 15,827 398,840 K-Swiss, Inc. -- Class A+ 14,175 272,869 Oxford Industries, Inc. 6,674 248,607 OshKosh B'Gosh, Inc. -- Class A 4,721 95,364 -------------- TOTAL TEXTILES & APPAREL 2,490,851 -------------- HOUSEHOLD DURABLES 2.5% NVR, Inc.* 2,689 1,481,639 Ethan Allen Interiors, Inc.+ 15,099 524,690 Champion Enterprises, Inc.* 28,904 297,422 -------------- TOTAL HOUSEHOLD DURABLES 2,303,751 -------------- LEISURE EQUIPMENT & PRODUCTS 2.0% Polaris Industries, Inc. 17,310 966,244 SCP Pool Corp. 21,440 573,306 Arctic Cat, Inc. 8,371 217,227 Sturm Ruger & Co., Inc. 10,870 97,939 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 1,854,716 -------------- AUTOMOBILES 1.1% Winnebago Industries, Inc. 13,694 474,360 Fleetwood Enterprises, Inc.*+ 22,506 341,641 Monaco Coach Corp. 11,896 257,549 -------------- TOTAL AUTOMOBILES 1,073,550 -------------- MEDIA 1.0% Arbitron, Inc.* 12,633 462,494 Advo, Inc. 12,409 383,934 Thomas Nelson, Inc. 5,892 115,189 -------------- TOTAL MEDIA 961,617 -------------- MULTILINE RETAIL 0.3% Fred's, Inc. 15,903 285,618 -------------- TOTAL MULTILINE RETAIL 285,618 -------------- INTERNET & CATALOG RETAIL 0.2% J. Jill Group, Inc.* 8,191 162,591 -------------- TOTAL INTERNET & CATALOG RETAIL 162,591 -------------- AUTO COMPONENTS 0.1% Midas, Inc.* 6,316 102,319 -------------- TOTAL AUTO COMPONENTS 102,319 -------------- TOTAL CONSUMER DISCRETIONARY 17,570,120 -------------- INFORMATION TECHNOLOGY 18.5% SOFTWARE 5.2% Factset Research Systems, Inc.+ 12,644 609,441 Take-Two Interactive Software, Inc.*+ 18,225 598,691 Kronos, Inc./MA* 12,756 564,963 Hyperion Solutions Corp.*+ 15,869 539,387 Micros Systems, Inc.* 7,567 378,880 Ansys, Inc.* 6,394 317,974 Serena Software, Inc.*+ 18,024 301,542 Manhattan Associates, Inc.* 12,176 297,338 Progress Software Corp.* 14,731 293,147 Filenet Corp.* 15,948 278,452 Sonic Solutions, Inc.* 9,538 155,660 Talx Corp. 5,535 127,803 Catapult Communications Corp.* 5,812 109,498 MRO Software, Inc.* 10,233 102,330 MapInfo Corp.* 8,236 88,949 Concord Communications, Inc.* 7,421 66,232 -------------- TOTAL SOFTWARE 4,830,287 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 5.1% Flir Systems, Inc.*+ 13,715 802,328 Trimble Navigation Ltd.*+ 20,768 656,269 Cognex Corp. 18,703 490,019 Dionex Corp.* 8,604 470,639 Scansource, Inc.* 5,189 331,058 Littelfuse, Inc.* 9,129 315,224 Global Imaging Systems, Inc.* 9,319 289,635 Rogers Corp.* 6,752 286,892 Veeco Instruments, Inc.* 12,153 254,848 Daktronics, Inc.* 7,734 189,096 BEI Technologies, Inc. 5,960 163,304 Itron, Inc.* 8,471 147,819 Photon Dynamics, Inc.* 6,774 137,512 X-Rite, Inc. 8,448 123,087 Keithley Instruments, Inc. 6,551 114,315 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 4,772,045 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.6% Varian Semiconductor Equipment Associates, Inc.* 14,787 456,918 Cymer, Inc.*+ 14,887 426,661 Microsemi Corp.* 24,150 340,515 Axcelis Technologies, Inc.*+ 40,522 335,522 FEI Co.* 13,526 267,274 ATMI, Inc.* 12,699 260,075 Brooks Automation, Inc.* 18,057 255,506 Power Integrations, Inc.*+ 12,499 255,355 DSP Group, Inc.* 11,552 243,170 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 57 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Helix Technology Corp. 10,702 $ 145,494 Advanced Energy Industries, Inc.* 13,302 123,576 Kulicke & Soffa Industries, Inc.* 20,701 116,961 Kopin Corp.* 28,425 115,690 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3,342,717 -------------- INTERNET SOFTWARE & SERVICES 1.6% Websense, Inc.* 9,419 392,490 WebEx Communications, Inc.* 17,945 391,560 j2 Global Communications, Inc.* 9,464 298,968 FindWhat.com*+ 12,209 228,674 Netegrity, Inc.* 15,523 116,578 Zix Corp.*+ 13,001 59,544 -------------- TOTAL INTERNET SOFTWARE & SERVICES 1,487,814 -------------- IT CONSULTING & SERVICES 1.2% Global Payments, Inc.+ 15,523 831,257 Startek, Inc. 5,893 184,804 Carreker Corp.* 9,933 75,590 Intrado, Inc.* 7,008 70,851 -------------- TOTAL IT CONSULTING & SERVICES 1,162,502 -------------- COMPUTERS & PERIPHERALS 1.0% Avid Technology, Inc.* 13,606 637,713 Synaptics, Inc.* 10,124 204,100 SBS Technologies, Inc.* 6,172 75,299 -------------- TOTAL COMPUTERS & PERIPHERALS 917,112 -------------- COMMUNICATIONS EQUIPMENT 0.8% Inter-Tel, Inc. 10,412 225,107 ViaSat, Inc.* 10,958 220,256 Harmonic, Inc.* 29,306 194,885 Bel Fuse, Inc. -- Class B 4,620 152,830 -------------- TOTAL COMMUNICATIONS EQUIPMENT 793,078 -------------- TOTAL INFORMATION TECHNOLOGY 17,305,555 -------------- INDUSTRIALS 17.1% MACHINERY 5.5% Briggs & Stratton Corp.+ 10,417 845,860 Oshkosh Truck Corp. 14,263 813,847 IDEX Corp. 20,456 694,686 Toro Co.+ 9,310 635,873 Clarcor, Inc. 10,345 493,146 CUNO, Inc.* 6,930 400,207 Manitowoc Co., Inc. 10,826 383,890 Wabash National Corp.* 13,704 376,449 Kaydon Corp.+ 11,550 332,294 Lindsay Manufacturing Co. 4,721 126,664 Milacron, Inc.* 14,489 45,206 -------------- TOTAL MACHINERY 5,148,122 -------------- COMMERCIAL SERVICES & SUPPLIES 3.0% Brady Corp. -- Class A 9,609 468,631 John H. Harland Co. 11,239 352,343 Watson Wyatt & Co., Holdings 13,112 344,846 Tetra Tech, Inc.*+ 22,789 288,737 Labor Ready, Inc.* 16,974 237,976 Heidrick & Struggles International, Inc.* 7,867 226,727 Imagistics International, Inc.* 6,674 224,246 Coinstar, Inc.*+ 8,771 204,364 Pre-Paid Legal Services, Inc.* 6,246 160,397 Administaff, Inc.* 10,703 125,225 Memberworks, Inc.*+ 4,363 114,485 CPI Corp. 3,248 43,036 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 2,791,013 -------------- ELECTRICAL EQUIPMENT 2.3% Roper Industries, Inc. 14,999 861,842 Acuity Brands, Inc. 17,232 409,605 Baldor Electric Co. 13,359 316,074 Intermagnetics General Corp.* 10,612 245,668 Vicor Corp. 17,097 172,851 Artesyn Technologies, Inc.* 15,948 159,161 -------------- TOTAL ELECTRICAL EQUIPMENT 2,165,201 -------------- AEROSPACE & DEFENSE 2.2% Armor Holdings, Inc.* 13,292 553,080 Engineered Support Systems, Inc.+ 10,590 483,328 Teledyne Technologies, Inc.* 13,168 329,727 Invision Technologies, Inc.* 7,264 326,807 Mercury Computer Systems, Inc.* 8,649 232,831 Applied Signal Technology, Inc. 4,564 146,002 -------------- TOTAL AEROSPACE & DEFENSE 2,071,775 -------------- ROAD & RAIL 1.9% Landstar System, Inc.* 12,297 721,588 Heartland Express, Inc. 30,489 562,522 Knight Transportation, Inc.* 22,879 490,068 -------------- TOTAL ROAD & RAIL 1,774,178 -------------- BUILDING PRODUCTS 1.2% Simpson Manufacturing Co., Inc. 9,710 613,672 Griffon Corp.*+ 11,930 251,723 ElkCorp 8,024 222,746 -------------- TOTAL BUILDING PRODUCTS 1,088,141 -------------- AIR FREIGHT & COURIERS 1.0% EGL, Inc.*+ 18,180 550,127 Forward Air Corp.*+ 8,816 352,816 -------------- TOTAL AIR FREIGHT & COURIERS 902,943 -------------- TOTAL INDUSTRIALS 15,941,373 -------------- See Notes to Financial Statements. 58 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- FINANCIALS 9.9% BANKS 6.3% First Bancorp Puerto Rico 16,327 $ 788,594 UCBH Holdings, Inc. 18,381 718,146 East-West Bancorp, Inc. 20,378 684,497 Hudson United Bancorp 18,225 671,591 First Midwest Bancorp, Inc./IL 18,883 652,597 Southwest Bancorp of Texas, Inc. 28,022 564,363 Community First Bankshares, Inc. 15,010 481,221 Wintrust Financial Corp. 8,337 477,543 TrustCo Bank Corp./NY 30,155 386,587 PrivateBancorp, Inc. 8,302 223,822 Gold Banc Corp., Inc. 16,294 219,806 -------------- TOTAL BANKS 5,868,767 -------------- THRIFTS & MORTGAGE FINANCE 2.3% New Century Financial Corp. 19,338 1,164,534 Fremont General Corp. 31,337 725,452 Dime Community Bancshares 15,100 253,680 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 2,143,666 -------------- REAL ESTATE 0.7% Essex Property Trust, Inc. 9,408 675,965 -------------- TOTAL REAL ESTATE 675,965 -------------- INSURANCE 0.5% Hilb Rogal & Hobbs Co. 14,531 526,313 -------------- TOTAL INSURANCE 526,313 -------------- CONSUMER FINANCE 0.1% Rewards Network, Inc.* 10,144 67,660 -------------- TOTAL CONSUMER FINANCE 67,660 -------------- TOTAL FINANCIALS 9,282,371 -------------- ENERGY 7.3% OIL & GAS 3.9% Patina Oil & Gas Corp. 28,626 846,471 Southwestern Energy Co.*+ 14,642 614,817 Cabot Oil & Gas Corp.+ 13,458 604,264 Vintage Petroleum, Inc. 26,471 531,273 St. Mary Land & Exploration Co. 11,618 462,513 Petroleum Development Corp.* 6,554 287,196 Frontier Oil Corp. 10,892 257,160 -------------- TOTAL OIL & GAS 3,603,694 -------------- ENERGY EQUIPMENT & SERVICES 3.4% Unit Corp.*+ 18,604 652,628 Cal Dive International, Inc.* 15,501 552,146 Maverick Tube Corp.* 17,276 532,273 CARBO Ceramics, Inc. 6,507 469,415 Hydril* 9,307 399,736 Input/Output, Inc.*+ 30,886 318,435 Tetra Technologies, Inc.* 9,084 282,058 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 3,206,691 -------------- TOTAL ENERGY 6,810,385 -------------- MATERIALS 4.3% METALS & MINING 1.6% Massey Energy Co. 30,779 890,436 Century Aluminum Co.* 12,887 357,357 Amcol International Corp. 11,985 229,153 -------------- TOTAL METALS & MINING 1,476,946 -------------- CHEMICALS 1.6% Georgia Gulf Corp. 13,481 601,118 Headwaters, Inc.*+ 13,604 419,819 MacDermid, Inc. 12,298 356,150 Omnova Solutions, Inc.* 16,316 98,386 -------------- TOTAL CHEMICALS 1,475,473 -------------- CONSTRUCTION MATERIALS 0.9% Florida Rock Industries, Inc. 17,577 861,097 -------------- TOTAL CONSTRUCTION MATERIALS 861,097 -------------- PAPER & FOREST PRODUCTS 0.2% Deltic Timber Corp.+ 4,999 198,910 -------------- TOTAL PAPER & FOREST PRODUCTS 198,910 -------------- TOTAL MATERIALS 4,012,426 -------------- CONSUMER STAPLES 2.7% FOOD PRODUCTS 0.9% Delta & Pine Land Co. 15,613 417,648 Sanderson Farms, Inc. 8,158 272,885 Lance, Inc. 12,020 194,123 -------------- TOTAL FOOD PRODUCTS 884,656 -------------- PERSONAL PRODUCTS 0.7% NBTY, Inc.* 27,109 584,470 Natures Sunshine Products, Inc. 6,094 92,446 -------------- TOTAL PERSONAL PRODUCTS 676,916 -------------- HOUSEHOLD PRODUCTS 0.6% Rayovac Corp.* 14,084 371,113 WD-40 Co. 6,863 196,282 -------------- TOTAL HOUSEHOLD PRODUCTS 567,395 -------------- FOOD & DRUG RETAILING 0.5% United Natural Foods, Inc.* 16,259 432,489 -------------- TOTAL FOOD & DRUG RETAILING 432,489 -------------- TOTAL CONSUMER STAPLES 2,561,456 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 59 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SMALL-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- TELECOMMUNICATION SERVICES 0.4% DIVERSIFIED TELECOMMUNICATION SERVICES 0.4% Commonwealth Telephone Enterprises, Inc.* 8,627 $ 375,706 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 375,706 ------------ TOTAL TELECOMMUNICATION SERVICES 375,706 ------------ TOTAL COMMON STOCKS (Cost $88,594,363) 91,609,743 ------------ FACE AMOUNT ----------- REPURCHASE AGREEMENTS 0.8% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 4,343 4,343 1.71% due 10/01/04 362,911 362,911 1.70% due 10/01/04 362,911 362,911 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $730,165) 730,165 ------------ SECURITIES LENDING COLLATERAL 6.2% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 5,820,355 5,820,355 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $5,820,355) 5,820,355 ------------ TOTAL INVESTMENTS 105.0% (Cost $95,144,883) $ 98,160,263 ============ LIABILITIES IN EXCESS OF OTHER ASSETS - (5.0)% $ (4,694,203) ============ NET ASSETS - 100.0% $ 93,466,060 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. 60 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 97.4% CONSUMER DISCRETIONARY 21.9% SPECIALTY RETAIL 8.5% Williams-Sonoma, Inc.*+ 13,861 $ 520,481 Petsmart, Inc.+ 17,418 494,497 Michaels Stores, Inc. 8,129 481,318 Ross Stores, Inc. 17,675 414,302 Chico's FAS, Inc.*+ 10,723 366,727 Abercrombie & Fitch Co. -- Class A+ 11,283 355,414 Urban Outfitters, Inc.*+ 9,593 329,999 American Eagle Outfitters, Inc.+ 8,579 316,136 Claire's Stores, Inc. 11,848 296,674 CarMax, Inc.* 12,470 268,729 O'Reilly Automotive, Inc.* 6,621 253,518 Rent-A-Center, Inc.* 9,446 244,274 Regis Corp. 5,329 214,332 Pacific Sunwear of California, Inc.* 8,823 185,724 Aeropostale, Inc.* 6,717 175,985 -------------- TOTAL SPECIALTY RETAIL 4,918,110 -------------- HOTELS RESTAURANTS & LEISURE 5.3% Mandalay Resort Group 8,122 557,575 Outback Steakhouse, Inc. 8,773 364,343 GTECH Holdings Corp. 14,152 358,329 Brinker International, Inc.*+ 10,766 335,361 International Speedway Corp. -- Class A 6,327 315,717 Boyd Gaming Corp. 10,375 292,056 Cheesecake Factory, Inc.*+ 6,185 268,429 Applebee's International, Inc. 9,773 247,062 Ruby Tuesday, Inc.+ 7,824 218,055 Krispy Kreme Doughnuts, Inc.*+ 7,408 93,785 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 3,050,712 -------------- MEDIA 4.1% Washington Post Co. -- Class B 1,214 1,116,880 Harte-Hanks, Inc. 10,305 257,728 Lee Enterprises, Inc.+ 5,425 251,395 Westwood One, Inc.* 11,668 230,676 Valassis Communications, Inc.* 6,187 183,012 Reader's Digest Association, Inc. 11,919 173,898 Catalina Marketing Corp. 6,218 143,511 -------------- TOTAL MEDIA 2,357,100 -------------- HOUSEHOLD DURABLES 1.9% Harman International Industries, Inc. 7,870 847,992 Blyth, Inc. 4,888 151,039 Tupperware Corp.+ 6,964 118,249 -------------- TOTAL HOUSEHOLD DURABLES 1,117,280 -------------- MULTILINE RETAIL 0.8% Dollar Tree Stores, Inc.*+ 13,598 366,466 99 Cents Only Stores* 8,354 118,877 -------------- TOTAL MULTILINE RETAIL 485,343 -------------- AUTO COMPONENTS 0.6% Gentex Corp. 9,268 325,585 -------------- TOTAL AUTO COMPONENTS 325,585 -------------- TEXTILES & APPAREL 0.4% Timberland Co. -- Class A*+ 4,227 240,094 -------------- TOTAL TEXTILES & APPAREL 240,094 -------------- AUTOMOBILES 0.3% Thor Industries, Inc. 6,811 180,287 -------------- TOTAL AUTOMOBILES 180,287 -------------- TOTAL CONSUMER DISCRETIONARY 12,674,511 -------------- INFORMATION TECHNOLOGY 18.9% SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.7% Microchip Technology, Inc.+ 24,647 661,525 Lam Research Corp.* 16,046 351,086 International Rectifier Corp.* 7,870 269,941 Cree, Inc.*+ 8,741 266,863 Atmel Corp.*+ 56,922 206,058 Silicon Laboratories, Inc.*+ 6,183 204,595 Integrated Circuit Systems, Inc.*+ 8,667 186,340 Semtech Corp.*+ 8,942 171,418 Cypress Semiconductor Corp.*+ 15,033 132,892 Micrel, Inc.* 10,960 114,094 Cabot Microelectronics Corp.*+ 2,978 107,953 LTX Corp.* 7,326 39,634 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2,712,399 -------------- IT CONSULTING & SERVICES 4.4% Cognizant Technology Solutions Corp.* 15,762 480,899 DST Systems, Inc.* 10,081 448,302 Alliance Data Systems Corp.* 9,635 390,796 Ceridian Corp.* 17,784 327,403 Certegy, Inc. 7,578 281,977 Acxiom Corp. 10,308 244,712 Gartner, Inc. -- Class A* 12,968 151,596 Titan Corp.* 10,117 141,334 CSG Systems International, Inc.* 6,207 95,650 -------------- TOTAL IT CONSULTING & SERVICES 2,562,669 -------------- SOFTWARE 4.0% McAfee, Inc.*+ 18,701 375,890 Synopsys, Inc.*+ 18,662 295,419 Fair Isaac Corp. 8,439 246,419 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 61 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- Activision, Inc.* 16,521 $ 229,146 Jack Henry & Associates, Inc. 10,818 203,054 Reynolds & Reynolds Co. -- Class A+ 7,715 190,329 Macromedia, Inc.* 8,347 167,608 RSA Security, Inc.* 7,612 146,912 Macrovision Corp.*+ 5,903 142,144 Wind River Systems, Inc.* 9,748 118,926 Mentor Graphics Corp.* 8,585 94,134 Transaction Systems Architects, Inc. -- Class A* 4,456 82,815 -------------- TOTAL SOFTWARE 2,292,796 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.1% CDW Corp. 9,983 579,314 Amphenol Corp. -- Class A* 10,542 361,169 National Instruments Corp.+ 9,412 284,901 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,225,384 -------------- COMPUTERS & PERIPHERALS 1.7% Sandisk Corp.*+ 19,388 564,579 Diebold, Inc.+ 8,577 400,546 -------------- TOTAL COMPUTERS & PERIPHERALS 965,125 -------------- COMMUNICATIONS EQUIPMENT 1.1% Plantronics, Inc. 5,748 248,543 ADTRAN, Inc.+ 9,509 215,664 Avocent Corp.* 5,891 153,343 -------------- TOTAL COMMUNICATIONS EQUIPMENT 617,550 -------------- OFFICE ELECTRONICS 0.9% Zebra Technologies Corp. -- Class A*+ 8,578 523,344 -------------- TOTAL OFFICE ELECTRONICS 523,344 -------------- INTERNET SOFTWARE & SERVICES 0.0% Retek, Inc.* 6,700 30,552 -------------- TOTAL INTERNET SOFTWARE & SERVICES 30,552 -------------- TOTAL INFORMATION TECHNOLOGY 10,929,819 -------------- HEALTH CARE 15.9% HEALTH CARE PROVIDERS & SERVICES 5.6% Patterson Cos., Inc.* 8,220 629,323 Coventry Health Care, Inc.*+ 10,738 573,087 Lincare Holdings, Inc.* 11,963 355,421 Omnicare, Inc. 12,482 353,989 Henry Schein, Inc.* 5,167 321,956 Covance, Inc.* 7,501 299,815 Renal Care Group, Inc.* 7,976 257,066 First Health Group Corp.* 10,974 176,572 Apria Healthcare Group, Inc.* 5,968 162,628 LifePoint Hospitals, Inc.* 4,676 140,327 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 3,270,184 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 5.0% Varian Medical Systems, Inc.*+ 16,241 561,451 DENTSPLY International, Inc. 9,597 498,468 Beckman Coulter, Inc. 7,361 413,099 Hillenbrand Industries, Inc. 7,417 374,781 Cytyc Corp.* 13,330 321,920 Edwards Lifesciences Corp.* 7,172 240,262 Inamed Corp.* 4,261 203,122 Varian, Inc.* 4,174 158,069 Visx, Inc.*+ 5,908 121,705 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,892,877 -------------- PHARMACEUTICALS 3.7% IVAX Corp.*+ 29,896 572,508 Barr Pharmaceuticals, Inc.* 12,526 518,952 Sepracor, Inc.*+ 10,471 510,775 Valeant Pharmaceuticals International 10,075 243,009 Perrigo Co. 8,470 174,059 Par Pharmaceutical Cos., Inc.*+ 4,101 147,349 -------------- TOTAL PHARMACEUTICALS 2,166,652 -------------- BIOTECHNOLOGY 1.6% Cephalon, Inc.*+ 6,772 324,379 Charles River Laboratories International, Inc.* 5,525 253,045 Protein Design Labs, Inc.*+ 11,346 222,155 Vertex Pharmaceuticals, Inc.* 9,542 100,191 -------------- TOTAL BIOTECHNOLOGY 899,770 -------------- TOTAL HEALTH CARE 9,229,483 -------------- INDUSTRIALS 13.7% COMMERCIAL SERVICES & SUPPLIES 6.1% Dun & Bradstreet Corp.*+ 8,444 495,663 ChoicePoint, Inc.* 10,646 454,052 Career Education Corp.*+ 12,289 349,376 HNI Corp. 6,850 271,123 Stericycle, Inc.*+ 5,421 248,824 Education Management Corp.* 8,722 232,354 Herman Miller, Inc. 8,532 210,314 Brink's Co. 6,778 204,492 Copart, Inc.* 10,790 204,255 ITT Educational Services, Inc.* 5,481 197,590 DeVry, Inc.*+ 8,437 174,730 Corinthian Colleges, Inc.*+ 10,812 145,746 Rollins, Inc. 5,469 132,842 Sotheby's Holdings, Inc. -- Class A* 7,561 118,859 Korn/Ferry International, Inc.* 4,673 85,189 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 3,525,409 -------------- See Notes to Financial Statements. 62 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- AIR FREIGHT & COURIERS 2.6% Expeditors International Washington, Inc.+ 12,674 $ 655,246 C.H. Robinson Worldwide, Inc.+ 10,250 475,498 J.B.Hunt Transport Services, Inc.+ 9,624 357,435 -------------- TOTAL AIR FREIGHT & COURIERS 1,488,179 -------------- MACHINERY 1.2% Donaldson Co., Inc. 10,348 293,780 Graco, Inc. 8,239 276,006 Nordson Corp. 4,273 146,692 -------------- TOTAL MACHINERY 716,478 -------------- ELECTRICAL EQUIPMENT 1.0% Hubbell, Inc. -- Class B 7,312 327,797 AMETEK, Inc. 8,201 248,654 -------------- TOTAL ELECTRICAL EQUIPMENT 576,451 -------------- TRADING COMPANIES & DISTRIBUTORS 0.9% Fastenal Co. 9,096 523,930 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 523,930 -------------- AIRLINES 0.6% JetBlue Airways Corp.*+ 12,400 259,408 AirTran Holdings, Inc.* 10,262 102,210 -------------- TOTAL AIRLINES 361,618 -------------- AEROSPACE & DEFENSE 0.5% Alliant Techsystems, Inc.* 4,467 270,253 -------------- TOTAL AEROSPACE & DEFENSE 270,253 -------------- CONSTRUCTION & ENGINEERING 0.4% Jacobs Engineering Group, Inc.* 6,734 257,845 -------------- TOTAL CONSTRUCTION & ENGINEERING 257,845 -------------- INDUSTRIAL CONGLOMERATES 0.4% Carlisle Cos., Inc. 3,723 238,011 -------------- TOTAL INDUSTRIAL CONGLOMERATES 238,011 -------------- TOTAL INDUSTRIALS 7,958,174 -------------- FINANCIALS 11.6% BANKS 5.6% Compass Bancshares, Inc. 14,645 641,744 Commerce Bancorp, Inc./NJ+ 9,394 518,549 TCF Financial Corp.+ 16,738 506,994 City National Corp.+ 5,868 381,126 Bank Of Hawaii Corp. 6,268 296,163 Cullen/Frost Bankers, Inc. 6,161 286,302 Wilmington Trust Corp. 7,903 286,168 Westamerica Bancorporation 3,779 207,429 Silicon Valley Bancshares* 4,270 158,716 -------------- TOTAL BANKS 3,283,191 -------------- CAPITAL MARKETS 3.4% Legg Mason, Inc.+ 12,035 641,078 SEI Investments Co.+ 12,369 416,588 Investors Financial Services Corp.+ 7,890 356,076 Eaton Vance Corp.+ 8,044 324,897 Waddell & Reed Financial, Inc. -- Class A 9,914 218,108 -------------- TOTAL CAPITAL MARKETS 1,956,747 -------------- INSURANCE 1.3% Brown & Brown, Inc. 8,194 374,466 Arthur J. Gallagher & Co.+ 10,997 364,330 -------------- TOTAL INSURANCE 738,796 -------------- REAL ESTATE 1.0% United Dominion Realty Trust, Inc.+ 15,313 303,657 Rayonier, Inc. 5,935 268,499 -------------- TOTAL REAL ESTATE 572,156 -------------- CONSUMER FINANCE 0.3% MoneyGram International, Inc. 10,638 181,697 -------------- TOTAL CONSUMER FINANCE 181,697 -------------- TOTAL FINANCIALS 6,732,587 -------------- ENERGY 7.2% OIL & GAS 4.2% XTO Energy, Inc.+ 30,931 1,004,639 Murphy Oil Corp. 11,007 955,077 Western Gas Resources, Inc. 8,786 251,192 Plains Exploration & Production Co.*+ 9,226 220,132 -------------- TOTAL OIL & GAS 2,431,040 -------------- ENERGY EQUIPMENT & SERVICES 3.0% Smith International, Inc.*+ 12,556 762,526 Patterson-UTI Energy, Inc. 19,930 380,065 Grant Prideco, Inc.* 14,653 300,240 FMC Technologies, Inc.* 8,120 271,208 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 1,714,039 -------------- TOTAL ENERGY 4,145,079 -------------- CONSUMER STAPLES 3.3% FOOD & DRUG RETAILING 1.1% Whole Foods Market, Inc.+ 7,463 640,251 -------------- TOTAL FOOD & DRUG RETAILING 640,251 -------------- HOUSEHOLD PRODUCTS 1.1% Energizer Holdings, Inc.*+ 9,320 429,652 Church & Dwight Co., Inc. 7,415 208,065 -------------- TOTAL HOUSEHOLD PRODUCTS 637,717 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 63 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- MID-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- FOOD PRODUCTS 1.1% Hormel Foods Corp.+ 16,555 $ 443,343 Tootsie Roll Industries, Inc. 6,232 182,099 -------------- TOTAL FOOD PRODUCTS 625,442 -------------- TOTAL CONSUMER STAPLES 1,903,410 -------------- MATERIALS 3.0% CHEMICALS 2.5% Lyondell Chemical Co.+ 21,342 479,341 Valspar Corp. 6,110 285,215 Scotts Co. -- Class A* 3,877 248,709 IMC Global, Inc.*+ 13,817 240,278 Olin Corp. 8,390 167,800 -------------- TOTAL CHEMICALS 1,421,343 -------------- CONTAINERS & PACKAGING 0.5% Packaging Corporation of America 12,772 312,531 -------------- TOTAL CONTAINERS & PACKAGING 312,531 -------------- TOTAL MATERIALS 1,733,874 -------------- UTILITIES 1.7% MULTI-UTILITIES 0.7% Equitable Resources, Inc.+ 7,419 402,926 -------------- TOTAL MULTI-UTILITIES 402,926 -------------- ELECTRIC UTILITIES 0.6% DPL, Inc. 15,161 312,013 -------------- TOTAL ELECTRIC UTILITIES 312,013 -------------- WATER UTILITIES 0.4% Aqua America, Inc. 11,115 245,753 -------------- TOTAL WATER UTILITIES 245,753 -------------- TOTAL UTILITIES 960,692 -------------- TELECOMMUNICATION SERVICES 0.2% DIVERSIFIED TELECOMMUNICATION SERVICES 0.2% Cincinnati Bell, Inc.* 29,301 102,260 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 102,260 -------------- TOTAL TELECOMMUNICATION SERVICES 102,260 -------------- TOTAL COMMON STOCKS (Cost $55,417,486) 56,369,889 -------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------- ------------- REPURCHASE AGREEMENTS 0.8% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 2,759 $ 2,759 1.71% due 10/01/04 230,565 230,565 1.70% due 10/01/04 230,565 230,565 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $463,889) 463,889 -------------- SECURITIES LENDING COLLATERAL 14.2% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 8,186,705 8,186,705 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $8,186,705) 8,186,705 -------------- TOTAL INVESTMENTS 112.4% (Cost $64,068,080 $ 65,020,483 ============== LIABILITIES IN EXCESS OF OTHER ASSETS - (12.4)% $ (7,158,235) ============== NET ASSETS - 100.0% $ 57,862,248 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. 64 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- COMMON STOCKS 99.9% INFORMATION TECHNOLOGY 25.6% SOFTWARE 8.4% Microsoft Corp. 11,554 $ 319,468 Oracle Corp.* 5,494 61,972 Symantec Corp.* 340 18,659 Electronic Arts, Inc.*+ 328 15,085 Adobe Systems, Inc.+ 258 12,763 Intuit, Inc.* 202 9,171 Autodesk, Inc.+ 118 5,739 Mercury Interactive Corp.* 99 3,453 Citrix Systems, Inc.* 181 3,171 Parametric Technology Corp.* 286 1,510 -------------- TOTAL SOFTWARE 450,991 -------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 5.5% Intel Corp. 6,820 136,809 Texas Instruments, Inc. 1,838 39,113 Applied Materials, Inc.* 1,807 29,797 Analog Devices, Inc.+ 400 15,512 Maxim Integrated Products, Inc.+ 349 14,759 Linear Technology Corp. 323 11,705 Xilinx, Inc. 371 10,017 Broadcom Corp. -- Class A* 347 9,470 KLA-Tencor Corp.* 210 8,711 Altera Corp.*+ 394 7,711 National Semiconductor Corp.* 381 5,902 Teradyne, Inc.* 205 2,747 PMC - Sierra, Inc.* 188 1,656 -------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 293,909 -------------- COMPUTERS & PERIPHERALS 5.0% International Business Machines Corp. 1,785 153,046 Dell, Inc.* 2,657 94,589 Lexmark International, Inc.* 143 12,013 Network Appliance, Inc.* 381 8,763 -------------- TOTAL COMPUTERS & PERIPHERALS 268,411 -------------- COMMUNICATIONS EQUIPMENT 4.1% Cisco Systems, Inc.* 7,189 130,121 Qualcomm, Inc. 1,730 67,539 Lucent Technologies, Inc.* 4,584 14,531 Avaya, Inc.* 481 6,705 -------------- TOTAL COMMUNICATIONS EQUIPMENT 218,896 -------------- IT CONSULTING & SERVICES 1.4% First Data Corp. 907 39,455 Automatic Data Processing, Inc. 616 25,453 Paychex, Inc. 400 12,060 -------------- TOTAL IT CONSULTING & SERVICES 76,968 -------------- INTERNET SOFTWARE & SERVICES 0.9% Yahoo!, Inc.*+ 1,446 49,034 -------------- TOTAL INTERNET SOFTWARE & SERVICES 49,034 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Agilent Technologies, Inc.* 512 11,044 Solectron Corp.* 1,026 5,079 Symbol Technologies, Inc. 258 3,261 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 19,384 -------------- TOTAL INFORMATION TECHNOLOGY 1,377,593 -------------- HEALTH CARE 22.3% PHARMACEUTICALS 14.5% Pfizer, Inc. 8,022 245,473 Johnson & Johnson, Inc. 3,156 177,778 Merck & Co., Inc. 2,363 77,979 Eli Lilly & Co. 1,207 72,480 Abbott Laboratories 1,657 70,191 Wyeth 1,420 53,108 Bristol-Myers Squibb Co. 2,072 49,044 Forest Laboratories, Inc.* 393 17,677 Allergan, Inc. 145 10,520 Mylan Laboratories, Inc.+ 286 5,148 -------------- TOTAL PHARMACEUTICALS 779,398 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 4.5% Medtronic, Inc. 1,282 66,536 Boston Scientific Corp.*+ 892 35,439 Guidant Corp.+ 330 21,793 Baxter International, Inc. 655 21,065 Zimmer Holdings, Inc.* 263 20,788 Stryker Corp. 422 20,290 St. Jude Medical, Inc.* 189 14,226 Becton, Dickinson & Co. 269 13,907 Biomet, Inc. 272 12,752 C.R. Bard, Inc. 110 6,229 Waters Corp.* 123 5,424 Millipore Corp.* 47 2,249 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 240,698 -------------- BIOTECHNOLOGY 1.7% Amgen, Inc.*+ 1,346 76,291 Gilead Sciences, Inc.* 460 17,195 -------------- TOTAL BIOTECHNOLOGY 93,486 -------------- HEALTH CARE PROVIDERS & SERVICES 1.6% UnitedHealth Group, Inc. 703 51,839 Cardinal Health, Inc. 460 20,134 IMS Health, Inc. 253 6,052 Express Scripts, Inc.* 74 4,835 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 82,860 -------------- TOTAL HEALTH CARE 1,196,442 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 65 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- CONSUMER STAPLES 19.3% FOOD & DRUG RETAILING 5.6% Wal-Mart Stores, Inc. 4,510 $ 239,932 Walgreen Co. 1,086 38,911 Sysco Corp. 679 20,316 -------------- TOTAL FOOD & DRUG RETAILING 299,159 -------------- BEVERAGES 4.6% Coca-Cola Co. 2,581 103,369 PepsiCo, Inc. 1,801 87,619 Anheuser-Busch Cos., Inc. 853 42,607 Pepsi Bottling Group, Inc. 272 7,385 Brown-Forman Corp. -- Class B 126 5,771 -------------- TOTAL BEVERAGES 246,751 -------------- HOUSEHOLD PRODUCTS 4.0% Procter & Gamble Co. 2,701 146,178 Kimberly-Clark Corp. 521 33,651 Colgate-Palmolive Co. 566 25,572 Clorox Co. 223 11,886 -------------- TOTAL HOUSEHOLD PRODUCTS 217,287 -------------- TOBACCO 2.1% Altria Group, Inc. 2,184 102,736 UST, Inc. 177 7,126 -------------- TOTAL TOBACCO 109,862 -------------- FOOD PRODUCTS 1.8% Sara Lee Corp. 845 19,317 Kellogg Co. 444 18,941 WM Wrigley Jr Co. 244 15,448 H.J. Heinz Co. 373 13,435 Hershey Foods Corp. 265 12,378 Campbell Soup Co. 441 11,594 McCormick & Co., Inc. 151 5,185 -------------- TOTAL FOOD PRODUCTS 96,298 -------------- PERSONAL PRODUCTS 1.2% Gillette Co. 1,064 44,411 Avon Products, Inc. 500 21,840 -------------- TOTAL PERSONAL PRODUCTS 66,251 -------------- TOTAL CONSUMER STAPLES 1,035,608 -------------- INDUSTRIALS 14.6% INDUSTRIAL CONGLOMERATES 8.2% General Electric Co. 11,225 376,935 3M Co. 835 66,775 -------------- TOTAL INDUSTRIAL CONGLOMERATES 443,710 -------------- AEROSPACE & DEFENSE 1.9% United Technologies Corp. 547 51,079 Boeing Co.+ 889 45,890 Rockwell Collins, Inc. 189 7,019 -------------- TOTAL AEROSPACE & DEFENSE 103,988 -------------- AIR FREIGHT & COURIERS 1.7% United Parcel Service, Inc. -- Class B 1,191 90,421 -------------- TOTAL AIR FREIGHT & COURIERS 90,421 -------------- COMMERCIAL SERVICES & SUPPLIES 1.2% Apollo Group, Inc. -- Class A* 204 14,967 Pitney Bowes, Inc. 250 11,025 H&R Block, Inc. 177 8,747 Cintas Corp. 183 7,693 Avery Dennison Corp. 115 7,565 Robert Half International, Inc. 184 4,742 Equifax, Inc. 150 3,954 Monster Worldwide, Inc.* 123 3,031 Deluxe Corp. 48 1,969 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 63,693 -------------- MACHINERY 0.9% Caterpillar, Inc. 366 29,445 Danaher Corp. 324 16,615 Navistar International Corp.* 66 2,454 -------------- TOTAL MACHINERY 48,514 -------------- ELECTRICAL EQUIPMENT 0.5% Emerson Electric Co. 450 27,851 -------------- TOTAL ELECTRICAL EQUIPMENT 27,851 -------------- BUILDING PRODUCTS 0.2% American Standard Cos., Inc.* 224 8,716 -------------- TOTAL BUILDING PRODUCTS 8,716 -------------- AIRLINES 0.0% Delta Air Lines, Inc.*+ 130 428 -------------- TOTAL AIRLINES 428 -------------- TOTAL INDUSTRIALS 787,321 -------------- CONSUMER DISCRETIONARY 9.1% SPECIALTY RETAIL 4.3% Home Depot, Inc. 2,331 91,375 Lowe's Cos., Inc.+ 832 45,219 Best Buy Co., Inc. 349 18,930 The Gap, Inc. 961 17,971 Staples, Inc. 524 15,626 Bed Bath & Beyond, Inc.* 316 11,727 TJX Cos., Inc. 515 11,350 Sherwin-Williams Co. 156 6,858 AutoZone, Inc.* 79 6,103 RadioShack Corp. 172 4,926 -------------- TOTAL SPECIALTY RETAIL 230,085 -------------- INTERNET & CATALOG RETAIL 1.2% eBay, Inc.*+ 699 64,266 -------------- TOTAL INTERNET & CATALOG RETAIL 64,266 -------------- See Notes to Financial Statements. 66 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- MEDIA 0.9% McGraw-Hill Cos., Inc. 201 $ 16,018 Omnicom Group, Inc. 198 14,466 New York Times Co. -- Class A 160 6,256 Knight-Ridder, Inc. 74 4,843 Dow Jones & Co., Inc.+ 78 3,168 Meredith Corp. 48 2,466 -------------- TOTAL MEDIA 47,217 -------------- HOTELS RESTAURANTS & LEISURE 0.8% Starbucks Corp.* 418 19,002 International Game Technology, Inc. 368 13,230 Yum! Brands, Inc. 307 12,483 -------------- TOTAL HOTELS RESTAURANTS & LEISURE 44,715 -------------- TEXTILES & APPAREL 0.6% Nike, Inc. -- Class B+ 281 22,143 Coach, Inc.* 199 8,441 -------------- TOTAL TEXTILES & APPAREL 30,584 -------------- MULTILINE RETAIL 0.5% Kohl's Corp.*+ 365 17,589 Dollar General Corp. 353 7,113 Family Dollar Stores, Inc. 180 4,878 -------------- TOTAL MULTILINE RETAIL 29,580 -------------- HOUSEHOLD DURABLES 0.4% Fortune Brands, Inc. 157 11,632 Black & Decker Corp. 76 5,885 Maytag Corp. 75 1,378 -------------- TOTAL HOUSEHOLD DURABLES 18,895 -------------- AUTOMOBILES 0.3% Harley-Davidson, Inc. 311 18,486 -------------- TOTAL AUTOMOBILES 18,486 -------------- AUTO COMPONENTS 0.1% Delphi Corp. 594 5,518 -------------- TOTAL AUTO COMPONENTS 5,518 -------------- TOTAL CONSUMER DISCRETIONARY 489,346 -------------- FINANCIALS 4.3% CONSUMER FINANCE 1.7% American Express Co. 1,347 69,317 SLM Corp. 465 20,739 -------------- TOTAL CONSUMER FINANCE 90,056 -------------- THRIFTS & MORTGAGE FINANCE 1.2% Fannie Mae 1,032 65,429 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 65,429 -------------- INSURANCE 0.5% Marsh & McLennan Cos., Inc. 556 25,443 -------------- TOTAL INSURANCE 25,443 -------------- BANKS 0.3% North Fork Bancorporation, Inc. 327 14,535 -------------- TOTAL BANKS 14,535 -------------- DIVERSIFIED FINANCIALS 0.2% Moody's Corp. 161 11,793 -------------- TOTAL DIVERSIFIED FINANCIALS 11,793 -------------- REAL ESTATE 0.2% Simon Property Group, Inc. 218 11,691 -------------- TOTAL REAL ESTATE 11,691 -------------- CAPITAL MARKETS 0.2% T. Rowe Price Group, Inc. 131 6,673 Federated Investors, Inc. -- Class B 113 3,214 -------------- TOTAL CAPITAL MARKETS 9,887 -------------- TOTAL FINANCIALS 228,834 -------------- MATERIALS 2.7% CHEMICALS 2.3% EI Du Pont de Nemours & Co. 1,060 45,368 Dow Chemical Co. 995 44,954 Praxair, Inc. 349 14,916 Ecolab, Inc. 275 8,646 Sigma-Aldrich Corp. 66 3,828 International Flavors & Fragrances, Inc. 100 3,820 Hercules, Inc.* 116 1,653 -------------- TOTAL CHEMICALS 123,185 -------------- CONTAINERS & PACKAGING 0.2% Ball Corp. 117 4,379 Pactiv Corp.* 163 3,790 Sealed Air Corp.* 80 3,708 -------------- TOTAL CONTAINERS & PACKAGING 11,877 -------------- METALS & MINING 0.2% Freeport-McMoRan Copper & Gold, Inc. -- Class B+ 189 7,655 Allegheny Technologies, Inc. 101 1,843 -------------- TOTAL METALS & MINING 9,498 -------------- TOTAL MATERIALS 144,560 -------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 67 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- LARGE-CAP GROWTH FUND MARKET VALUE SHARES (NOTE 1) ----------- -------------- ENERGY 1.3% ENERGY EQUIPMENT & SERVICES 1.3% Schlumberger Ltd. 632 $ 42,540 Halliburton Co. 470 15,834 BJ Services Co.+ 174 9,119 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 67,493 -------------- TOTAL ENERGY 67,493 -------------- TELECOMMUNICATION SERVICES 0.6% WIRELESS TELECOMMUNICATION SERVICES 0.5% Nextel Communications, Inc. -- Class A* 1,180 28,131 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 28,131 -------------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.1% Qwest Communications International, Inc.* 1,928 6,420 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 6,420 -------------- TOTAL TELECOMMUNICATION SERVICES 34,551 -------------- UTILITIES 0.1% MULTI-UTILITIES 0.1% AES Corp.* 686 6,853 -------------- TOTAL MULTI-UTILITIES 6,853 -------------- TOTAL UTILITIES 6,853 -------------- TOTAL COMMON STOCKS (Cost $5,113,542) 5,368,601 -------------- MARKET FACE VALUE AMOUNT (NOTE 1) ----------- -------------- REPURCHASE AGREEMENTS 1.8% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 580 $ 580 1.71% due 10/01/04 48,556 48,556 1.70% due 10/01/04 48,556 48,556 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $97,692) 97,692 -------------- SECURITIES LENDING COLLATERAL 3.5% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 189,731 189,731 -------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $189,731) 189,731 -------------- TOTAL INVESTMENTS 105.2% (Cost $5,400,965) $ 5,656,024 ============== LIABILITIES IN EXCESS OF OTHER ASSETS - (5.2)% $ (280,929) ============== NET ASSETS - 100.0% $ 5,375,095 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. 68 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND MARKET FACE VALUE AMOUNT (NOTE 1) ------------ --------------- FEDERAL AGENCY DISCOUNT NOTES 88.5% Fannie Mae* 1.53% due 10/08/04 $100,000,000 $ 99,970,250 1.51% due 10/06/04 50,000,000 49,989,514 1.60% due 11/03/04 50,000,000 49,926,667 1.64% due 11/17/04 50,000,000 49,892,944 1.47% due 10/13/04 25,000,000 24,987,750 1.53% due 10/20/04 25,000,000 24,979,812 Farmer Mac* 1.47% due 10/06/04 50,000,000 49,989,792 1.65% due 10/13/04 50,000,000 49,972,500 1.57% due 10/27/04 50,000,000 49,943,306 1.84% due 12/29/04 50,000,000 49,772,556 1.89% due 01/03/05 25,000,000 24,876,625 1.83% due 12/15/04 22,000,000 21,916,125 Federal Farm Credit Bank* 1.58% due 10/08/04 50,000,000 49,984,639 1.40% due 10/06/04 10,000,000 9,998,056 Federal Home Loan Bank* 1.71% due 10/25/04 100,000,000 99,886,000 1.49% due 10/06/04 50,000,000 49,989,653 1.56% due 10/29/04 50,000,000 49,939,333 1.73% due 10/27/04 50,000,000 49,937,528 1.64% due 11/08/04 50,000,000 49,913,444 1.72% due 12/10/04 50,000,000 49,832,778 1.53% due 10/13/04 25,000,000 24,987,250 1.42% due 11/19/04 25,000,000 24,951,680 1.40% due 10/07/04 15,000,000 14,996,500 Freddie Mac* 1.51% due 10/19/04 50,000,000 49,962,250 1.69% due 11/05/04 50,000,000 49,917,847 1.74% due 12/07/04 50,000,000 49,838,083 1.72% due 12/27/04 50,000,000 49,792,167 1.73% due 12/28/04 50,000,000 49,788,555 1.88% due 12/28/04 50,000,000 49,770,833 1.67% due 10/12/04 45,000,000 44,977,037 1.44% due 10/12/04 25,000,000 24,989,000 1.76% due 01/11/05 25,000,000 24,875,333 2.29% due 06/28/05 20,000,000 19,656,500 --------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $1,434,202,307) 1,434,202,307 --------------- FEDERAL AGENCY BONDS 0.3% Federal Home Loan Bank* 2.35% due 07/29/05 5,000,000 5,000,000 --------------- TOTAL FEDERAL AGENCY BONDS (Cost $5,000,000) 5,000,000 --------------- REPURCHASE AGREEMENTS 12.2% Repurchase Agreement (Note 6) 1.72% due 10/01/04 197,032,141 197,032,141 --------------- TOTAL REPURCHASE AGREEMENTS (Cost $197,032,141) 197,032,141 --------------- TOTAL INVESTMENTS 101.0% (Cost $1,636,234,448) $ 1,636,234,448 =============== LIABILITIES IN EXCESS OF OTHER ASSETS - (1.0)% $ (15,891,281) =============== NET ASSETS - 100.0% $ 1,620,343,167 * THE ISSUER IS A PUBLICALLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S. GOVERNMENT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 69 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) - --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------- ------------- --------------- ------------- ASSETS Securities at Value* (Notes 1, 2, 6 and 9) $ -- $ -- $ 1,174,553,704 $ -- Investments in Master Portfolio** (Note 3) 276,751,339 586,230,843 -- 290,804,523 Segregated Cash with Broker -- -- 1,020,000 -- Cash in Custodian Bank -- -- -- -- Receivable for Equity Index Swap Settlement (Note 1) -- -- -- -- Receivable for Futures Contracts Settlement (Note 1) -- -- 3,078 -- Receivable for Securities Sold (Note 1) -- 9,879,200 -- 2,305,321 Receivable for Shares Purchased 10,650,522 4,286,308 14,370,456 2,460,939 Investment Income Receivable (Note 1) -- -- 23,805 -- Other Assets -- -- -- 33,838 ------------- ------------- --------------- ------------- TOTAL ASSETS 287,401,861 600,396,351 1,189,971,043 295,604,621 ============= ============= =============== ============= LIABILITIES Payable for Equity Index Swap Settlement (Note 1) -- -- -- -- Payable for Futures Contracts Settlement (Note 1) -- -- -- -- Payable upon Return of Securities Loaned (Note 9) -- -- 325,347,018 -- Payable for Securities Purchased (Note 1) 9,682,391 -- 7,384,772 -- Liability for Shares Redeemed 863,296 13,962,316 2,358,198 4,666,287 Investment Advisory Fee Payable (Note 4) -- -- 522,065 -- Transfer Agent Fee Payable (Note 4) 55,495 120,553 174,022 57,618 Distribution and Service Fee Payable (Note 4) 12,054 16,851 4,879 6,924 Portfolio Accounting Fee Payable (Note 4) 21,771 39,480 48,547 22,408 Custody Fees Payable -- -- 16,706 -- Cash Payable to Custodian Bank -- -- 1,293 -- Payable to Master Portfolio -- -- -- -- Other Liabilities 81,635 157,143 245,861 76,316 ------------- ------------- --------------- ------------- TOTAL LIABILITIES 10,716,642 14,296,343 336,103,361 4,829,553 ------------- ------------- --------------- ------------- NET ASSETS $ 276,685,219 $ 586,100,008 $ 853,867,682 $ 290,775,068 ============= ============= =============== ============= ANALYSIS OF NET ASSETS Paid-In Capital $ 370,834,359 $ 793,260,379 $ 1,545,163,741 $ 436,486,236 Undistributed Net Investment Income (Loss) (1,018,830) (1,542,703) (4,285,775) (792,453) Accumulated Net Realized Loss on Investments, Options, Equity Index Swaps, and Futures Contracts (90,472,316) (193,720,041) (1,013,759,602) (137,190,786) Net Unrealized Appreciation (Depreciation) on Investments, Options, Equity Index Swaps, and Futures Contracts (2,657,994) (11,897,627) 326,749,318 (7,727,929) ------------- ------------- --------------- ------------- NET ASSETS $ 276,685,219 $ 586,100,008 $ 853,867,682 $ 290,775,068 ============= ============= =============== ============= Investor Class $ 174,048,348 $ 467,765,056 $ 812,539,537 $ 239,332,030 Advisor Class 55,975,671 61,204,392 28,554,631 26,255,807 A-Class 8,378,087 6,198,941 874,877 3,703,757 C-Class 38,283,113 50,931,619 11,898,637 21,483,474 H-Class N/A N/A N/A N/A SHARES OUTSTANDING Investor Class 7,330,476 50,878,894 85,586,943 9,287,363 Advisor Class 2,434,983 6,901,813 3,105,008 1,025,031 A-Class 363,912 699,108 94,945 144,352 C-Class 1,673,626 5,747,299 1,304,647 867,109 H-Class N/A N/A N/A N/A NET ASSET VALUES Investor Class $ 23.74 $ 9.19 $ 9.49 $ 25.77 Advisor Class 22.99 8.87 9.20 25.61 A-Class 23.02 8.87 9.21 25.66 A-Class Maximum Offering Price Per Share*** 24.17 9.31 9.67 26.94 C-Class 22.87 8.86 9.12 24.78 H-Class N/A N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $0, $0, $847,985,407, $0, $37,888,477, $4,251,654, $126,350,045, $32,948,517, $144,281,158, $0, $30,666,029, AND $48,267,459, RESPECTIVELY. ** THE COST OF INVESTMENTS IN MASTER PORTFOLIO IS $279,409,333, $598,128,470, $0, $298,532,452, $0, $0, $0, $0, $0, $2,927,166,242, $0, AND $0, RESPECTIVELY. *** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE. See Notes to Financial Statements. 70 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT September 30, 2004 - --------------------------------------------------------------------------------
INVERSE INVERSE MEDIUS MID-CAP MEKROS SMALL-CAP FUND FUND FUND FUND ------------- ------------- --------------- ------------- ASSETS Securities at Value* (Notes 1, 2, 6 and 9) $ 40,634,848 $ 4,251,654 $ 131,795,763 $ 32,948,517 Investments in Master Portfolio** (Note 3) -- -- -- -- Segregated Cash with Broker 1,627,254 684,865 5,490,241 3,811,959 Cash in Custodian Bank 38 -- 124 36 Receivable for Equity Index Swap Settlement (Note 1) 749,021 -- 2,189,005 -- Receivable for Futures Contracts Settlement (Note 1) 80,794 -- 68,102 -- Receivable for Securities Sold (Note 1) 379,007 -- -- -- Receivable for Shares Purchased 11,260,297 1,452,620 22,694,020 1,068,392 Investment Income Receivable (Note 1) 16,077 201 73,008 1,315 Other Assets -- -- -- -- ------------- ------------- --------------- ------------- TOTAL ASSETS 54,747,336 6,389,340 162,310,263 37,830,219 ============= ============= =============== ============= LIABILITIES Payable for Equity Index Swap Settlement (Note 1) -- 169,759 -- 1,787,522 Payable for Futures Contracts Settlement (Note 1) -- 13,330 -- 20,300 Payable upon Return of Securities Loaned (Note 9) 4,176,485 -- 10,494,337 -- Payable for Securities Purchased (Note 1) 132,641 -- -- -- Liability for Shares Redeemed 3,661,913 256,155 6,055,562 1,022,066 Investment Advisory Fee Payable (Note 4) 33,397 6,075 105,498 31,373 Transfer Agent Fee Payable (Note 4) 9,277 1,688 29,305 8,715 Distribution and Service Fee Payable (Note 4) 3,038 587 9,190 4,792 Portfolio Accounting Fee Payable (Note 4) 3,711 675 11,722 3,486 Custody Fees Payable 898 162 4,988 837 Cash Payable to Custodian Bank -- -- -- -- Payable to Master Portfolio -- -- -- -- Other Liabilities 15,570 1,915 39,588 13,319 ------------- ------------- --------------- ------------- TOTAL LIABILITIES 8,036,930 450,346 16,750,190 2,892,410 ------------- ------------- --------------- ------------- NET ASSETS $ 46,710,406 $ 5,938,994 $ 145,560,073 $ 34,937,809 ============= ============= =============== ============= ANALYSIS OF NET ASSETS Paid-In Capital $ 53,780,205 $ 6,694,458 $ 181,145,074 $ 39,864,281 Undistributed Net Investment Income (Loss) (168,766) (16,026) (572,550) (154,750) Accumulated Net Realized Loss on Investments, Options, Equity Index Swaps, and Futures Contracts (9,850,180) (697,448) (42,494,248) (4,233,995) Net Unrealized Appreciation (Depreciation) on Investments, Options, Equity Index Swaps, and Futures Contracts 2,949,147 (41,990) 7,481,797 (537,727) ------------- ------------- --------------- ------------- NET ASSETS $ 46,710,406 $ 5,938,994 $ 145,560,073 $ 34,937,809 ============= ============= =============== ============= Investor Class N/A N/A N/A N/A Advisor Class N/A N/A N/A N/A A-Class $ 253,470 $ 158,914 $ 1,012,073 $ 247,734 C-Class 11,088,827 123,606 21,993,613 17,665,777 H-Class 35,368,109 5,656,474 122,554,387 17,024,298 SHARES OUTSTANDING Investor Class N/A N/A N/A N/A Advisor Class N/A N/A N/A N/A A-Class 9,300 3,243 40,528 4,986 C-Class 416,250 2,533 904,861 357,101 H-Class 1,297,887 115,433 4,909,328 342,762 NET ASSET VALUES Investor Class N/A N/A N/A N/A Advisor Class N/A N/A N/A N/A A-Class $ 27.26 $ 49.01 $ 24.97 $ 49.69 A-Class Maximum Offering Price Per Share*** 28.62 51.45 26.22 52.17 C-Class 26.64 48.79 24.31 49.47 H-Class 27.25 49.00 24.96 49.67
U.S. LARGE-CAP LARGE-CAP GOVERNEMENT JUNO EUROPE JAPAN BOND FUND FUND FUND FUND ------------- -------------- --------------- ------------- ASSETS Securities at Value* (Notes 1, 2, 6 and 9) $ 152,899,264 $ -- $ 30,666,029 $ 48,267,459 Investments in Master Portfolio** (Note 3) -- 2,740,342,809 -- -- Segregated Cash with Broker 766,500 -- -- 211,300 Cash in Custodian Bank 81 -- 42 42 Receivable for Equity Index Swap Settlement (Note 1) -- -- 702,490 -- Receivable for Futures Contracts Settlement (Note 1) -- -- -- 36,256 Receivable for Securities Sold (Note 1) 11,306,146 -- -- -- Receivable for Shares Purchased 1,091,315 22,259,895 3,044,611 522,685 Investment Income Receivable (Note 1) 933,215 -- 1,455 1,813 Other Assets 554 -- -- -- ------------- -------------- --------------- ------------- TOTAL ASSETS 166,997,075 2,762,602,704 34,414,627 49,039,555 ============= ============== =============== ============= LIABILITIES Payable for Equity Index Swap Settlement (Note 1) -- -- -- 2,627,565 Payable for Futures Contracts Settlement (Note 1) 225,902 -- -- -- Payable upon Return of Securities Loaned (Note 9) -- -- -- -- Payable for Securities Purchased (Note 1) -- 14,183,062 -- -- Liability for Shares Redeemed 13,188,272 7,124,830 534,489 5,381,058 Investment Advisory Fee Payable (Note 4) 70,146 -- 16,201 33,347 Transfer Agent Fee Payable (Note 4) 28,059 542,204 4,500 9,263 Distribution and Service Fee Payable (Note 4) 14,824 182,186 1,852 2,838 Portfolio Accounting Fee Payable (Note 4) 14,029 92,729 1,800 3,705 Custody Fees Payable 3,367 -- 432 889 Cash Payable to Custodian Bank -- -- -- -- Payable to Master Portfolio -- 38 -- -- Other Liabilities 38,948 751,526 6,447 14,187 ------------- -------------- --------------- ------------- TOTAL LIABILITIES 13,583,547 22,876,575 565,721 8,072,852 ------------- -------------- --------------- ------------- NET ASSETS $ 153,413,528 $2,739,726,129 $ 33,848,906 $ 40,966,703 ============= =-============ =============== ============= ANALYSIS OF NET ASSETS Paid-In Capital $ 159,015,329 $2,964,869,250 $ 37,091,144 $ 58,621,083 Undistributed Net Investment Income (Loss) (242,384) (9,994,163) (79,730) 11,245,101 Accumulated Net Realized Loss on Investments, Options, Equity Index Swaps, and Futures Contracts (15,073,648) (28,325,525) (3,798,114) (27,410,627) Net Unrealized Appreciation (Depreciation) on Investments, Options, Equity Index Swaps, and Futures Contracts 9,714,231 (186,823,433) 635,606 (1,488,854) ------------- -------------- --------------- ------------- NET ASSETS $ 153,413,528 $2,739,726,129 $ 33,848,906 $ 40,966,703 ============= ============== =============== ============= Investor Class $ 32,092,745 $1,592,954,226 N/A N/A Advisor Class 114,729,871 136,210,308 N/A N/A A-Class 366,237 119,907,343 $ 117,402 $ 192,592 C-Class 6,224,675 890,654,252 1,887,898 6,447,969 H-Class N/A N/A 31,843,606 34,326,142 SHARES OUTSTANDING Investor Class 2,954,777 81,576,259 N/A N/A Advisor Class 10,549,447 7,016,437 N/A N/A A-Class 33,689 6,167,762 7,633 6,722 C-Class 571,416 47,095,450 126,239 228,673 H-Class N/A N/A 2,069,741 1,197,217 NET ASSET VALUES Investor Class $ 10.86 $ 19.53 N/A N/A Advisor Class 10.88 19.41 N/A N/A A-Class 10.87 19.44 $ 15.38 $ 28.65 A-Class Maximum Offering Price Per Share*** 11.41 20.41 16.15 30.08 C-Class 10.89 18.91 14.95 28.20 H-Class N/A N/A 15.39 28.67
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 71 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED) - --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP VALUE VALUE VALUE GROWTH FUND FUND FUND FUND ------------- ------------- --------------- ------------- ASSETS Securities at Value* (Notes 1, 2, 6 and 9) $ 126,101,528 $ 55,512,635 $ 130,822,872 $ 98,160,263 Cash in Custodian Bank -- 328 1,448 346 Receivable for Securities Sold (Note 1) -- 636,056 5,161,413 2,485,512 Receivable for Shares Purchased 12,872,665 8,493,759 1,554,247 6,171,457 Investment Income Receivable (Note 1) 114,384 37,623 110,965 37,647 Other Assets -- -- 1,045 -- ------------- ------------- --------------- ------------- TOTAL ASSETS 139,088,577 64,680,401 137,651,990 106,855,225 ============= ============= =============== ============= LIABILITIES Payable upon Return of Securities Loaned (Note 9) 8,100,047 4,875,792 15,604,006 5,820,355 Payable for Securities Purchased (Note 1) 5,908,295 5,373,946 122,346 335,356 Liability for Shares Redeemed 6,638,193 3,144,137 5,656,665 7,170,159 Investment Advisory Fee Payable (Note 4) 67,264 31,439 78,842 33,282 Transfer Agent Fee Payable (Note 4) 22,421 10,480 26,281 11,094 Distribution and Service Fee Payable (Note 4) 5,797 2,380 6,080 3,642 Portfolio Accounting Fee Payable (Note 4) 8,969 4,192 10,512 4,438 Custody Fees Payable 2,625 1,944 2,959 1,065 Cash Payable to Custodian Bank 71 -- -- -- Dividends Payable -- -- -- -- Other Liabilities 19,046 9,707 21,981 9,774 ------------- ------------- --------------- ------------- TOTAL LIABILITIES 20,772,728 13,454,017 21,529,672 13,389,165 ------------- ------------- --------------- ------------- NET ASSETS $ 118,315,849 $ 51,226,384 $ 116,122,318 $ 93,466,060 ============= ============= =============== ============= ANALYSIS OF NET ASSETS Paid-In Capital $ 117,554,441 $ 51,250,166 $ 115,282,234 $ 93,471,238 Undistributed Net Investment Income (Loss) (52,999) (2,749) 80,264 (102,390) Accumulated Net Realized Loss on Investments (5,177,757) (2,807,388) (3,543,935) (2,918,168) Net Unrealized Appreciation on Investments 5,992,164 2,786,355 4,303,755 3,015,380 ------------- ------------- --------------- ------------- NET ASSETS $ 118,315,849 $ 51,226,384 $ 116,122,318 $ 93,466,060 ============= ============= =============== ============= Investor Class N/A N/A N/A N/A Advisor Class N/A N/A N/A N/A A-Class $ 18,227 $ 1,020 $ 1,016 $ 1,042 C-Class 1,911,402 2,109,090 2,500,356 4,098,514 H-Class 116,386,220 49,116,274 113,620,946 89,366,504 Institutional Class N/A N/A N/A N/A SHARES OUTSTANDING Investor Class N/A N/A N/A N/A Advisor Class N/A N/A N/A N/A A-Class 694 41 41 41 C-Class 73,138 84,425 100,040 161,482 H-Class 4,430,013 1,959,494 4,531,183 3,510,123 Institutional Class N/A N/A N/A N/A NET ASSET VALUES Investor Class N/A N/A N/A N/A Advisor Class N/A N/A N/A N/A A-Class $ 26.26 $ 25.06 $ 25.08 $ 25.46 A-Class Maximum Offering Price Per Share** 27.57 26.31 26.33 26.73 C-Class 26.13 24.98 24.99 25.38 H-Class 26.27 25.07 25.08 25.46 Institutional Class N/A N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $120,109,364, $52,726,280, $126,519,117, $95,144,883, $64,068,080, $5,400,965, AND $1,636,234,448, RESPECTIVELY. ** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE. See Notes to Financial Statements. 72 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT September 30, 2004 - --------------------------------------------------------------------------------
U.S. MID-CAP LARGE-CAP GOVERNMENT GROWTH GROWTH MONEY FUND FUND MARKET FUND ------------- ------------- --------------- ASSETS Securities at Value* (Notes 1, 2, 6 and 9) $ 65,020,483 $ 5,656,024 $ 1,636,234,448 Cash in Custodian Bank 7,794 96 7,466 Receivable for Securities Sold (Note 1) 5,968,807 -- -- Receivable for Shares Purchased 655,750 756,183 85,909,891 Investment Income Receivable (Note 1) 18,519 12,167 30,303 Other Assets -- -- -- ------------- ------------- --------------- TOTAL ASSETS 71,671,353 6,424,470 1,722,182,108 ============= ============= =============== LIABILITIES Payable upon Return of Securities Loaned (Note 9) 8,186,705 189,731 -- Payable for Securities Purchased (Note 1) 395,659 610,645 -- Liability for Shares Redeemed 5,186,658 235,977 100,281,773 Investment Advisory Fee Payable (Note 4) 21,485 5,598 658,188 Transfer Agent Fee Payable (Note 4) 7,162 1,866 256,937 Distribution and Service Fee Payable (Note 4) 2,709 546 48,320 Portfolio Accounting Fee Payable (Note 4) 2,865 746 65,349 Custody Fees Payable 740 182 31,820 Cash Payable to Custodian Bank -- -- -- Dividends Payable -- -- 53,803 Other Liabilities 5,122 4,084 442,751 ------------- ------------- --------------- TOTAL LIABILITIES 13,809,105 1,049,375 101,838,941 ------------- ------------- --------------- NET ASSETS $ 57,862,248 $ 5,375,095 $ 1,620,343,167 ============= ============= =============== ANALYSIS OF NET ASSETS Paid-In Capital $ 58,629,369 $ 5,749,280 $ 1,620,807,513 Undistributed Net Investment Income (Loss) (46,323) (6,470) -- Accumulated Net Realized Loss on Investments (1,673,201) (622,774) (464,346) Net Unrealized Appreciation on Investments 952,403 255,059 -- ------------- ------------- --------------- NET ASSETS $ 57,862,248 $ 5,375,095 $ 1,620,343,167 ============= ============= =============== Investor Class N/A N/A $ 1,149,680,224 Advisor Class N/A N/A 247,985,344 A-Class $ 1,017 $ 994 4,126,563 C-Class 1,461,521 683,491 168,549,965 H-Class 56,399,710 4,690,610 N/A Institutional Class N/A N/A 50,001,071 SHARES OUTSTANDING Investor Class N/A N/A 1,150,103,585 Advisor Class N/A N/A 248,240,715 A-Class 42 43 4,126,563 C-Class 60,324 29,434 168,549,268 H-Class 2,318,280 201,192 N/A Institutional Class N/A N/A 50,001,000 NET ASSET VALUES Investor Class N/A N/A $ 1.00 Advisor Class N/A N/A 1.00 A-Class $ 24.31 $ 23.31 1.00 A-Class Maximum Offering Price Per Share** 25.52 24.47 1.00 C-Class 24.23 23.22 1.00 H-Class 24.33 23.31 N/A Institutional Class N/A N/A 1.00
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 73 STATEMENTS OF OPERATIONS (UNAUDITED) - --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS FUND FUND FUND FUND ------------- ------------- --------------- ------------- INVESTMENT INCOME Interest (Note 1) $ -- $ -- $ 129,862 $ -- Interest from Securities Lending, net (Note 9) -- -- 86,020 -- Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- 1,249,181 -- Other Income -- -- 3,581 -- ------------- ------------- --------------- ------------- Total Income -- -- 1,468,644 -- ------------- ------------- --------------- ------------- EXPENSES Advisory Fees (Note 4) -- -- 3,419,054 -- Transfer Agent and Administrative Fees (Note 4) 368,509 622,837 1,139,685 319,824 Distribution & Service Fees (Note 4): Advisor Class 139,041 125,374 116,692 52,547 A-Class 3,570 3,524 744 1,630 C-Class 172,875 250,125 74,284 125,138 H-Class -- -- -- -- Accounting Fees (Note 4) 141,689 213,791 305,513 125,994 Registration Fees 74,964 111,526 229,252 53,747 Trustees' Fees 4,807 6,565 14,424 3,394 Custodian Fees 368 454 105,924 240 Printing Expenses 66,588 95,293 200,110 46,753 Miscellaneous 46,419 113,214 148,737 63,186 ------------- ------------- --------------- ------------- Total Expenses 1,018,830 1,542,703 5,754,419 792,453 ------------- ------------- --------------- ------------- Net Investment Income (Loss) (1,018,830) (1,542,703) (4,285,775) (792,453) ============= ============= =============== ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (8,821,694) (17,529,547) 8,417,786 (4,298,011) Equity Index Swaps -- -- -- -- Futures Contracts -- -- (2,250,042) -- ------------- ------------- --------------- ------------- Total Net Realized Gain (Loss) (8,821,694) (17,529,547) 6,167,744 (4,298,011) ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (4,642,899) 6,288,907 (35,041,633) (5,551,965) Equity Index Swaps -- -- -- -- Futures Contracts -- -- (123,021) -- ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation (Depreciation) (4,642,899) 6,288,907 (35,164,654) (5,551,965) ------------- ------------- --------------- ------------- Net Gain (Loss) on Investments (13,464,593) (11,240,640) (28,996,910) (9,849,976) ------------- ------------- --------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (14,483,423) $ (12,783,343) $ (33,282,685) $ (10,642,429) ============= ============= =============== =============
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $7,984, $0, $0, $0, $16, $0, $0, $0, $0, AND $0, RESPECTIVELY. See Notes to Financial Statements. 74 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT Period Ended September 30, 2004 - --------------------------------------------------------------------------------
INVERSE INVERSE MEDIUS MID-CAP MEKROS SMALL-CAP FUND FUND FUND FUND ------------- ------------- --------------- ------------- INVESTMENT INCOME Interest (Note 1) $ 102,348 $ 33,677 $ 308,866 $ 236,676 Interest from Securities Lending, net (Note 9) 3,891 -- 19,333 -- Dividends, Net of Foreign Tax Withheld* (Note 1) 331,887 -- 622,052 -- Other Income 114 -- -- 790 ------------- ------------- --------------- ------------- Total Income 438,240 33,677 950,251 237,466 ------------- ------------- --------------- ------------- EXPENSES Advisory Fees (Note 4) 305,828 26,129 770,558 179,704 Transfer Agent and Administrative Fees (Note 4) 84,952 7,258 214,044 49,918 Distribution & Service Fees (Note 4): Advisor Class -- -- -- -- A-Class 197 147 874 483 C-Class 60,547 2,247 140,870 81,623 H-Class 69,619 6,549 177,952 29,029 Accounting Fees (Note 4) 33,981 2,903 84,821 19,967 Registration Fees 19,971 984 49,112 5,211 Trustees' Fees 1,304 51 3,179 449 Custodian Fees 7,829 678 23,852 4,808 Printing Expenses 17,744 829 42,805 5,440 Miscellaneous 5,034 1,928 14,734 15,584 ------------- ------------- --------------- ------------- Total Expenses 607,006 49,703 1,522,801 392,216 ------------- ------------- --------------- ------------- Net Investment Income (Loss) (168,766) (16,026) (572,550) (154,750) ============= ============= =============== ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (768,679) (8,219) (7,041,597) 13,448 Equity Index Swaps (3,049,021) (177,584) (10,070,140) (1,499,416) Futures Contracts (714,917) (417,481) (13,559,141) (2,162,534) ------------- ------------- --------------- ------------- Total Net Realized Gain (Loss) (4,532,617) (603,284) (30,670,878) (3,648,502) ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (3,178,849) 64,715 (6,698,290) 118,550 Equity Index Swaps (377,074) (18,490) 600,335 (454,992) Futures Contracts (287,041) (14,988) (1,027,833) 2,402 ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation (Depreciation) (3,842,964) 31,237 (7,125,788) (334,040) ------------- ------------- --------------- ------------- Net Gain (Loss) on Investments (8,375,581) (572,047) (37,796,666) (3,982,542) ------------- ------------- --------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (8,544,347) $ (588,073) $ (38,369,216) $ (4,137,292) ============= ============= =============== =============
U.S. LARGE-CAP LARGE-CAP GOVERNEMENT JUNO EUROPE JAPAN BOND FUND FUND FUND FUND ------------- ------------- --------------- ------------- INVESTMENT INCOME Interest (Note 1) $ 2,345,404 $ -- $ 155,230 $ 468,243 Interest from Securities Lending, net (Note 9) -- -- -- -- Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- -- -- Other Income -- -- 299 -- ------------- ------------- --------------- ------------- Total Income 2,345,404 -- 155,529 468,243 ------------- ------------- --------------- ------------- EXPENSES Advisory Fees (Note 4) 238,652 -- 123,018 383,185 Transfer Agent and Administrative Fees (Note 4) 95,461 3,246,843 34,172 106,440 Distribution & Service Fees (Note 4): Advisor Class 104,255 287,738 -- -- A-Class 252 108,297 66 222 C-Class 42,182 4,088,473 12,610 31,837 H-Class -- -- 30,953 98,259 Accounting Fees (Note 4) 47,730 558,372 13,669 42,576 Registration Fees 17,606 468,662 9,917 21,510 Trustees' Fees 1,138 33,318 570 1,519 Custodian Fees 11,466 2,860 3,112 10,048 Printing Expenses 14,779 441,568 8,377 18,813 Miscellaneous 30,979 758,032 (1,205) 11,029 ------------- ------------- --------------- ------------- Total Expenses 604,500 9,994,163 235,259 725,438 ------------- ------------- --------------- ------------- Net Investment Income (Loss) 1,740,904 (9,994,163) (79,730) (257,195) ============= ============= =============== ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (1,960,055) (14,275,330) -- 119 Equity Index Swaps -- -- (3,825,899) (26,676,312) Futures Contracts 727,932 -- 27,785 (418,063) ------------- ------------- --------------- ------------- Total Net Realized Gain (Loss) (1,232,123) (14,275,330) (3,798,114) (27,094,256) ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities 3,812,721 (99,440,793) -- -- Equity Index Swaps -- -- 1,681,035 (13,208,988) Futures Contracts 631,641 -- -- (1,841,140) ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation (Depreciation) 4,444,362 (99,440,793) 1,681,035 (15,050,128) ------------- ------------- --------------- ------------- Net Gain (Loss) on Investments 3,212,239 (113,716,123) (2,117,079) (42,144,384) ------------- ------------- --------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 4,953,143 $(123,710,286) $ (2,196,809) $ (42,401,579) ============= ============= =============== =============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 75 STATEMENTS OF OPERATIONS (UNAUDITED)(CONCLUDED) - --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP VALUE VALUE VALUE GROWTH FUND FUND FUND FUND ------------- ------------- --------------- ------------- INVESTMENT INCOME Interest (Note 1) $ 3,646 $ 1,917 $ 3,001 $ 1,573 Interest from Securities Lending, net (Note 9) 939 118 159 1,744 Dividends, Net of Foreign Tax Withheld* (Note 1) 283,962 177,307 452,733 92,745 Other Income -- -- -- -- ------------- ------------- --------------- ------------- Total Income 288,547 179,342 455,893 96,062 ------------- ------------- --------------- ------------- EXPENSES Advisory Fees (Note 4) 166,887 87,021 183,102 96,463 Transfer Agent and Administrative Fees (Note 4) 55,629 29,007 61,034 32,154 Distribution & Service Fees (Note 4): Advisor Class -- -- -- -- A-Class 1 -- -- -- C-Class 6,543 9,620 8,933 4,125 H-Class 53,992 26,602 58,801 31,123 Accounting Fees (Note 4) 22,251 11,603 24,414 12,862 Registration Fees 4,227 3,090 4,861 2,606 Trustees' Fees 470 245 402 260 Custodian Fees 5,992 4,773 6,236 4,332 Printing Expenses 4,711 2,886 4,876 3,181 Miscellaneous 20,843 9,471 23,130 11,346 ------------- ------------- --------------- ------------- Total Expenses 341,546 184,318 375,789 198,452 ------------- ------------- --------------- ------------- Less Institutional Class Expense Reimbursed by Advisor (Note 4 ) -- -- -- -- Less Expenses Waived by Servicer -- -- -- -- Less Expenses Waived by Distributor Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- Total Waived Expenses -- -- -- -- ------------- ------------- --------------- ------------- Net Expenses 341,546 184,318 375,789 198,452 ------------- ------------- --------------- ------------- Net Investment Income (Loss) (52,999) (4,976) 80,104 (102,390) ============= ============= =============== ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Loss on: Investment Securities (4,689,475) (2,364,135) (3,073,760) (2,875,615) Futures Contracts (6,780) -- -- -- ------------- ------------- --------------- ------------- Total Net Realized Loss (4,696,255) (2,364,135) (3,073,760) (2,875,615) ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation on: Investment Securities 5,290,128 2,452,832 4,193,814 2,897,628 ------------- ------------- --------------- ------------- Net Change in Unrealized Appreciation 5,290,128 2,452,832 4,193,814 2,897,628 ------------- ------------- --------------- ------------- Net Gain (Loss) on Investments 593,873 88,697 1,120,054 22,013 ------------- ------------- --------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 540,874 $ 83,721 $ 1,200,158 $ (80,377) ============= ============= =============== =============
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $0, $0, $0, AND $0, RESPECTIVELY. See Notes to Financial Statements. 76 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT Period Ended September 30, 2004 - --------------------------------------------------------------------------------
U.S. MID-CAP LARGE-CAP GOVERNMENT GROWTH GROWTH MONEY FUND FUND MARKET FUND ------------- ------------- --------------- INVESTMENT INCOME Interest (Note 1) $ 1,335 $ 753 $ 9,840,904 Interest from Securities Lending, net (Note 9) 157 53 9,541 Dividends, Net of Foreign Tax Withheld* (Note 1) 39,496 114,553 -- Other Income -- -- 1,444 ------------- ------------- --------------- Total Income 40,988 115,359 9,851,889 ------------- ------------- --------------- EXPENSES Advisory Fees (Note 4) 41,843 57,795 4,064,097 Transfer Agent and Administrative Fees (Note 4) 13,948 19,265 1,625,639 Distribution & Service Fees (Note 4): Advisor Class -- -- 621,985 A-Class -- -- 3,058 C-Class 3,997 6,101 825,174 H-Class 12,948 17,739 -- Accounting Fees (Note 4) 5,579 7,706 412,597 Registration Fees 834 2,191 366,834 Trustees' Fees 109 190 23,638 Custodian Fees 1,416 2,906 189,223 Printing Expenses 1,039 2,513 323,521 Miscellaneous 5,598 5,423 347,737 ------------- ------------- --------------- Total Expenses 87,311 121,829 8,803,503 ------------- ------------- --------------- Less Institutional Class Expense Reimbursed by Advisor (Note 4 ) -- -- (25,896) Less Expenses Waived by Servicer -- -- (62,702) Less Expenses Waived by Distributor Advisor Class -- -- (283,204) A-Class -- -- (23) C-Class -- -- (569,947) ------------- ------------- --------------- Total Waived Expenses -- -- (941,772) ------------- ------------- --------------- Net Expenses 87,311 121,829 7,861,731 ------------- ------------- --------------- Net Investment Income (Loss) (46,323) (6,470) 1,990,158 ============= ============= =============== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Loss on: Investment Securities (1,643,659) (611,760) -- Futures Contracts -- -- -- ------------- ------------- --------------- Total Net Realized Loss (1,643,659) (611,760) -- ------------- ------------- --------------- Net Change in Unrealized Appreciation on: Investment Securities 920,583 231,312 -- ------------- ------------- --------------- Net Change in Unrealized Appreciation 920,583 231,312 -- ------------- ------------- --------------- Net Gain (Loss) on Investments (723,076) (380,448) -- ------------- ------------- --------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (769,399) $ (386,918) $ 1,990,158 ============= ============= ===============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 77 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, 2004+ 2004 2004+ 2004 ------------- -------------- --------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (1,018,830) $ 340,080 $ (1,542,703) $ (2,380,206) Net Realized Gain (Loss) on Investments (8,821,694) 90,383,820 (17,529,547) (151,683,423) Net Change in Unrealized Appreciation (Depreciation) on Investments (4,642,899) 4,757,494 6,288,907 (29,214,083) ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets from Operations (14,483,423) 95,481,394 (12,783,343) (183,277,712) ------------- -------------- --------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- (40,957) -- -- Advisor Class -- (10,891) -- -- A-Class -- -- -- -- C-Class -- (7,164) -- -- H-Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- (13,522,152) Advisor Class -- -- -- (1,661,923) A-Class -- -- -- -- C-Class -- -- -- (1,341,391) H-Class -- -- -- -- ------------- -------------- --------------- -------------- Total Distributions to Shareholders -- (59,012) -- (16,525,466) ============= ============== =============== ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 744,076,468 1,416,342,537 985,058,074 2,501,275,661 Advisor Class* 183,942,818 306,125,216 147,866,778 266,048,066 A-Class** 10,666,820 1,000 8,597,763 1,000 C-Class*** 85,426,717 192,486,411 112,157,262 295,353,504 H-Class*** -- -- -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- 38,795 -- 11,922,468 Advisor Class* -- 10,397 -- 1,392,275 A-Class** -- -- -- -- C-Class*** -- 6,469 -- 1,108,788 H-Class*** -- -- -- -- COST OF SHARES REDEEMED Investor Class (746,792,908) (1,428,901,726) (860,659,745) (2,460,564,864) Advisor Class* (171,560,172) (305,616,613) (130,216,655) (244,455,917) A-Class** (2,206,370) -- (2,289,035) -- C-Class*** (78,551,954) (180,456,147) (105,805,377) (256,929,090) H-Class*** -- -- -- -- ============= ============== =============== ============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 25,001,419 36,339 154,709,065 115,151,891 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets 10,517,996 95,458,721 141,925,722 (84,651,287) NET ASSETS--BEGINNING OF PERIOD 266,167,223 170,708,502 444,174,286 528,825,573 ------------- -------------- --------------- -------------- NET ASSETS--END OF PERIOD $ 276,685,219 $ 266,167,223 $ 586,100,008 $ 444,174,286 ============= ============== =============== ==============
OTC FUND ------------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 ------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (4,285,775) $ (9,083,636) Net Realized Gain (Loss) on Investments 6,167,744 50,732,674 Net Change in Unrealized Appreciation (Depreciation) on Investments (35,164,654) 218,083,908 ------------- -------------- Net Increase (Decrease) in Net Assets from Operations (33,282,685) 259,732,946 ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- Realized Gain on Investment Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- ------------- -------------- Total Distributions to Shareholders -- -- ============= ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 721,610,586 1,663,377,353 Advisor Class* 116,339,285 145,760,607 A-Class** 1,741,525 1,000 C-Class*** 65,410,703 156,778,878 H-Class*** -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- Advisor Class* -- -- A-Class** -- -- C-Class*** -- -- H-Class*** -- -- COST OF SHARES REDEEMED Investor Class (740,384,926) (1,704,150,398) Advisor Class* (140,659,554) (142,951,655) A-Class** (829,949) -- C-Class*** (66,082,625) (154,712,316) H-Class*** -- -- ============= ============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (42,854,955) (35,896,531) ------------- -------------- Net Increase (Decrease) in Net Assets (76,137,640) 223,836,415 NET ASSETS--BEGINNING OF PERIOD 930,005,322 706,168,907 ------------- -------------- NET ASSETS--END OF PERIOD $ 853,867,682 $ 930,005,322 ============= ==============
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003 -- ARKTOS FUND ADVISOR CLASS. ** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004 -- NOVA FUND A-CLASS, URSA FUND A-CLASS, OTC FUND A-CLASS, ARKTOS FUND A-CLASS, MEDIUS FUND A-CLASS, INVERSE MID-CAP FUND A-CLASS, AND MEKROS FUND A-CLASS. *** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- INVERSE MID-CAP FUND C-CLASS AND H-CLASS. + Unaudited See Notes to Financial Statements. 78 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ARKTOS FUND MEDIUS FUND ------------------------------- -------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- -------------- --------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (792,453) $ (908,880) $ (168,766) $ (424,768) Net Realized Gain (Loss) on Investments (4,298,011) (75,225,824) (4,532,617) 15,367,682 Net Change in Unrealized Appreciation (Depreciation) on Investments (5,551,965) 2,089,842 (3,842,964) 6,114,604 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets from Operations (10,642,429) (74,044,862) (8,544,347) 21,057,518 ------------- -------------- --------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- ------------- -------------- --------------- -------------- Total Distributions to Shareholders -- -- -- -- ============= ============== =============== ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 569,450,091 1,242,912,907 -- -- Advisor Class* 75,246,057 28,360,837 -- -- A-Class** 5,884,761 1,000 402,268 3,858 C-Class*** 104,292,982 150,430,699 67,579,333 139,180,601 H-Class*** -- -- 476,191,672 902,750,247 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** -- -- -- -- C-Class*** -- -- -- -- H-Class*** -- -- -- -- COST OF SHARES REDEEMED Investor Class (532,242,776) (1,109,906,486) -- -- Advisor Class* (65,770,747) (10,056,568) -- -- A-Class** (2,122,834) -- (150,212) -- C-Class*** (115,664,685) (114,441,552) (69,679,744) (134,104,779) H-Class*** -- -- (501,729,064) (866,491,167) ============= ============== =============== ============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 39,072,849 187,300,837 (27,385,747) 41,338,760 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets 28,430,420 113,255,975 (35,930,094) 62,396,278 NET ASSETS--BEGINNING OF PERIOD 262,344,648 149,088,673 82,640,500 20,244,222 ------------- -------------- --------------- -------------- NET ASSETS--END OF PERIOD $ 290,775,068 $ 262,344,648 $ 46,710,406 $ 82,640,500 ============= ============== =============== ==============
INVERSE MID-CAP FUND MEKROS FUND ------------------------------- -------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- -------------- --------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (16,026) $ (3,411) $ (572,550) $ (1,353,110) Net Realized Gain (Loss) on Investments (603,284) (94,164) (30,670,878) 63,829,139 Net Change in Unrealized Appreciation (Depreciation) on Investments 31,237 (73,227) (7,125,788) 13,493,646 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets from Operations (588,073) (170,802) (38,369,216) 75,969,675 ------------- -------------- --------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- ------------- -------------- --------------- -------------- Total Distributions to Shareholders -- -- -- -- ============= ============== =============== ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** 403,472 1,000 2,599,980 3,857 C-Class*** 12,106,704 510,083 126,575,531 413,199,562 H-Class*** 80,197,113 24,015,087 1,551,782,703 2,576,731,176 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** -- -- -- -- C-Class*** -- -- -- -- H-Class*** -- -- -- -- COST OF SHARES REDEEMED Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** (243,715) -- (1,614,645) -- C-Class*** (12,031,288) (366,630) (149,260,879) (394,089,160) H-Class*** (76,721,687) (21,172,270) (1,569,328,562) (2,494,270,646) ============= ============== =============== ============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 3,710,599 2,987,270 (39,245,872) 101,574,789 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets 3,122,526 2,816,468 (77,615,088) 177,544,464 NET ASSETS--BEGINNING OF PERIOD 2,816,468 -- 223,175,161 45,630,697 ------------- -------------- --------------- -------------- NET ASSETS--END OF PERIOD $ 5,938,994 $ 2,816,468 $ 145,560,073 $ 223,175,161 ============= ============== =============== ==============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 79 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) - --------------------------------------------------------------------------------
INVERSE U.S. GOVERNMENT SMALL-CAP FUND BOND FUND ------------------------------- -------------------------------- PERIOD PERIOD PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- -------------- --------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (154,750) $ (8,012) $ 1,740,904 $ 2,137,637 Net Realized Gain (Loss) on Investments (3,648,502) (585,493) (1,232,123) (2,154,408) Net Change in Unrealized Appreciation (Depreciation) on Investments (334,040) (203,687) 4,444,362 2,247,394 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets from Operations (4,137,292) (797,192) 4,953,143 2,230,623 ------------- -------------- --------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- (913,156) (1,740,970) Advisor Class -- -- (700,719) (276,878) A-Class -- -- (3,792) -- C-Class -- -- (123,238) (119,789) H-Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- ------------- -------------- --------------- -------------- Total Distributions to Shareholders -- -- (1,740,905) (2,137,637) ============= ============== =============== ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- 353,152,652 937,862,658 Advisor Class* -- -- 184,369,111 166,588,132 A-Class** 2,145,200 1,000 1,011,701 1,000 C-Class*** 79,901,772 17,865,104 61,569,666 71,640,020 H-Class*** 452,531,067 50,824,029 -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- 849,180 1,619,190 Advisor Class* -- -- 700,461 276,673 A-Class** -- -- 3,784 -- C-Class*** -- -- 117,712 112,328 H-Class*** -- -- -- -- COST OF SHARES REDEEMED Investor Class -- -- (347,657,965) (966,933,885) Advisor Class* -- -- (119,409,468) (119,380,064) A-Class** (1,901,823) -- (671,327) -- C-Class*** (61,501,948) (17,257,781) (59,542,238) (69,703,957) H-Class*** (437,645,912) (45,088,415) -- -- ============= ============== =============== ============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 33,528,356 6,343,937 74,493,269 22,082,095 ------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets 29,391,064 5,546,745 77,705,507 22,175,081 NET ASSETS--BEGINNING OF PERIOD 5,546,745 -- 75,708,021 53,532,940 ------------- -------------- --------------- -------------- NET ASSETS--END OF PERIOD $ 34,937,809 $ 5,546,745 $ 153,413,528 $ 75,708,021 ============= ============== =============== ==============
JUNO FUND ------------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 -------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (9,994,163) $ (5,820,858) Net Realized Gain (Loss) on Investments (14,275,330) 17,200,721 Net Change in Unrealized Appreciation (Depreciation) on Investments (99,440,793) (88,008,612) -------------- -------------- Net Increase (Decrease) in Net Assets from Operations (123,710,286) (76,628,749) -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- Realized Gain on Investment Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- -------------- -------------- Total Distributions to Shareholders -- -- ============== ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 2,195,558,009 2,756,117,189 Advisor Class* 214,722,077 109,156,186 A-Class** 143,471,514 5,056,682 C-Class*** 656,495,552 618,908,385 H-Class*** -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- Advisor Class* -- -- A-Class** -- -- C-Class*** -- -- H-Class*** -- -- COST OF SHARES REDEEMED Investor Class (1,435,112,090) (1,937,672,854) Advisor Class* (123,358,246) (54,704,285) A-Class** (19,349,868) -- C-Class*** (214,556,783) (164,593,541) H-Class*** -- -- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 1,417,870,165 1,332,267,762 -------------- -------------- Net Increase (Decrease) in Net Assets 1,294,159,879 1,255,639,013 NET ASSETS--BEGINNING OF PERIOD 1,445,566,250 189,927,237 -------------- -------------- NET ASSETS--END OF PERIOD $2,739,726,129 $1,445,566,250 ============== ==============
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003 -- U.S. GOVERNMENT BOND FUND ADVISOR CLASS, AND JUNO FUND ADVISOR CLASS. ** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004 -- INVERSE SMALL-CAP FUND A-CLASS, U.S. GOVERNMENT BOND FUND A-CLASS, JUNO FUND A-CLASS, LARGE-CAP EUROPE FUND A-CLASS, AND LARGE-CAP JAPAN FUND A-CLASS; SEPTEMBER 1, 2004 -- SMALL-CAP VALUE FUND A-CLASS, AND MID-CAP VALUE FUND A-CLASS. *** SINCE THE COMMENCEMENT OF OPERATIONS; FEBRUARY 20, 2004 -- INVERSE SMALL-CAP FUND C-CLASS AND H-CLASS, SMALL-CAP VALUE FUND C-CLASS AND H-CLASS, AND MID-CAP VALUE FUND C-CLASS AND H-CLASS. + Unaudited See Notes to Financial Statements. 80 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LARGE-CAP LARGE-CAP EUROPE FUND JAPAN FUND ------------------------------ -------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- ------------- --------------- -------------- FROM OPERATIONS Net Investment Income (Loss) $ (79,730) $ (267,373) $ (257,195) $ (342,111) Net Realized Gain (Loss) on Investments (3,798,114) 10,115,575 (27,094,256) 6,626,890 Net Change in Unrealized Appreciation (Depreciation) on Investments 1,681,035 (1,166,723) (15,050,128) 13,605,279 -------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets from Operations (2,196,809) 8,681,479 (42,401,579) 19,890,058 -------------- -------------- --------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- (121,876) -- (22,026) H-Class -- (3,323,463) -- (331,142) -------------- -------------- --------------- -------------- Total Distributions to Shareholders -- (3,445,339) -- (353,168) ============== ============== =============== ============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** 133,205 1,000 219,121 54,619 C-Class*** 31,762,233 41,151,762 15,021,418 17,100,604 H-Class*** 130,065,042 372,420,819 354,061,584 635,111,524 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** -- -- -- -- C-Class*** -- 119,553 -- 18,857 H-Class*** -- 3,275,637 -- 293,399 COST OF SHARES REDEEMED Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** (18,046) -- (51,568) -- C-Class*** (31,889,381) (41,547,262) (12,618,099) (12,059,612) H-Class*** (131,921,074) (349,399,148) (456,651,725) (479,360,611) ============== ============== =============== ============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (1,868,021) 26,022,361 (100,019,269) 161,158,780 -------------- -------------- --------------- -------------- Net Increase (Decrease) in Net Assets (4,064,830) 31,258,501 (142,420,848) 180,695,670 NET ASSETS--BEGINNING OF PERIOD 37,913,736 6,655,235 183,387,551 2,691,881 -------------- -------------- --------------- -------------- NET ASSETS--END OF PERIOD $ 33,848,906 $ 37,913,736 $ 40,966,703 $ 183,387,551 ============== ============== =============== ==============
SMALL-CAP MID-CAP VALUE FUND VALUE FUND ------------------------------ -------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- ------------- --------------- ------------- FROM OPERATIONS Net Investment Income (Loss) $ (52,999) $ (3,043) $ (4,976) $ 2,948 Net Realized Gain (Loss) on Investments (4,696,255) (476,796) (2,364,135) (443,253) Net Change in Unrealized Appreciation (Depreciation) on Investments 5,290,128 702,036 2,452,832 333,523 ------------- ------------- --------------- ------------- Net Increase (Decrease) in Net Assets from Operations 540,874 222,197 83,721 (106,782) ------------- ------------- --------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- ------------- ------------- --------------- ------------- Total Distributions to Shareholders -- -- -- -- ============= ============= =============== ============= SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** 18,155 -- 1,000 -- C-Class*** 16,045,354 5,578,690 30,127,920 5,091,595 H-Class*** 344,331,415 49,997,813 213,012,004 56,066,523 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** -- -- -- -- C-Class*** -- -- -- -- H-Class*** -- -- -- -- COST OF SHARES REDEEMED Investor Class -- -- -- -- Advisor Class* -- -- -- -- A-Class** -- -- -- -- C-Class*** (16,320,718) (3,436,117) (28,867,779) (4,406,697) H-Class*** (248,405,537) (30,256,277) (181,903,874) (37,871,247) ============= ============= =============== ============= NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 95,668,669 21,884,109 32,369,271 18,880,174 ------------- ------------- --------------- ------------- Net Increase (Decrease) in Net Assets 96,209,543 22,106,306 32,452,992 18,773,392 NET ASSETS--BEGINNING OF PERIOD 22,106,306 -- 18,773,392 -- ------------- ------------- --------------- ------------- NET ASSETS--END OF PERIOD $ 118,315,849 $ 22,106,306 $ 51,226,384 $ 18,773,392 ============= ============= =============== =============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 81 STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED) - --------------------------------------------------------------------------------
LARGE-CAP SMALL-CAP VALUE FUND GROWTH FUND ----------------------------- ---------------------------- PERIOD PERIOD PERIOD PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- ------------ ------------- ----------- FROM OPERATIONS Net Investment Income (Loss) $ 80,104 $ 3,279 $ (102,390) $ (1,601) Net Realized Gain (Loss) on Investments (3,073,760) (470,175) (2,875,615) (38,944) Net Change in Unrealized Appreciation (Depreciation) on Investments 4,193,814 109,941 2,897,628 117,752 ------------- ------------ ------------- ----------- Net Increase (Decrease) in Net Assets from Operations 1,200,158 (356,955) (80,377) 77,207 ------------- ------------ ------------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Institutional Class -- -- -- -- Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Institutional Class -- -- -- -- ------------- ------------ ------------- ----------- Total Distributions to Shareholders -- -- -- -- ============= ============ ============= =========== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class* 1,000 -- 1,000 -- C-Class** 24,866,434 6,863,402 23,883,524 4,370,288 H-Class** 332,751,415 42,220,344 279,243,281 4,806,391 Institutional Class -- -- -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class* -- -- -- -- C-Class** -- -- -- -- H-Class** -- -- -- -- Institutional Class -- -- -- -- COST OF SHARES REDEEMED Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class* -- -- -- -- C-Class** (24,842,634) (4,267,751) (22,258,902) (1,918,498) H-Class** (228,560,859) (33,752,236) (192,371,937) (2,285,917) Institutional Class -- -- -- -- ============= ============ ============= =========== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 104,215,356 11,063,759 88,496,966 4,972,264 ------------- ------------ ------------- ----------- Net Increase (Decrease) in Net Assets 105,415,514 10,706,804 88,416,589 5,049,471 NET ASSETS--BEGINNING OF PERIOD 10,706,804 -- 5,049,471 -- ------------- ------------ ------------- ----------- NET ASSETS--END OF PERIOD $ 116,122,318 $ 10,706,804 $ 93,466,060 $ 5,049,471 ============= ============ ============= ===========
MID-CAP GROWTH FUND ----------------------------- PERIOD PERIOD ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 ------------- ------------ FROM OPERATIONS Net Investment Income (Loss) $ (46,323) $ (1,082) Net Realized Gain (Loss) on Investments (1,643,659) (11,115) Net Change in Unrealized Appreciation (Depreciation) on Investments 920,583 31,820 ------------- ------------ Net Increase (Decrease) in Net Assets from Operations (769,399) 19,623 ------------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- Institutional Class -- -- Realized Gain on Investment Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- Institutional Class -- -- ------------- ------------ Total Distributions to Shareholders -- -- ============= ============ SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- Advisor Class -- -- A-Class* 1,000 -- C-Class** 12,805,655 4,563,742 H-Class** 121,015,126 3,435,495 Institutional Class -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- Advisor Class -- -- A-Class* -- -- C-Class** -- -- H-Class** -- -- Institutional Class -- -- COST OF SHARES REDEEMED Investor Class -- -- Advisor Class -- -- A-Class* -- -- C-Class** (12,404,598) (3,397,291) H-Class** (64,582,325) (2,824,780) Institutional Class -- -- ============= ============ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 56,834,858 1,777,166 ------------- ------------ Net Increase (Decrease) in Net Assets 56,065,459 1,796,789 NET ASSETS--BEGINNING OF PERIOD 1,796,789 -- ------------- ------------ NET ASSETS--END OF PERIOD 57,862,248 $ 1,796,789 ============= ============
* SINCE THE COMMENCEMENT OF OPERATIONS MARCH 31, 2004 -- U.S. GOVERNMENT MONEY MARKET FUND A-CLASS, SEPTEMBER 1, 2004 -- LARGE-CAP VALUE FUND A-CLASS; SMALL-CAP GROWTH FUND A-CLASS, MID-CAP GROWTH FUND A-CLASS, AND LARGE-CAP GROWTH FUND A-CLASS. ** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- LARGE-CAP VALUE FUND C-CLASS AND H-CLASS, SMALL-CAP GROWTH FUND C-CLASS AND H-CLASS, MID-CAP GROWTH FUND C-CLASS AND H-CLASS, AND LARGE-CAP GROWTH FUND C-CLASS AND H-CLASS. + UNAUDITED See Notes to Financial Statements. 82 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LARGE-CAP U.S. GOVERNMENT GROWTH FUND MONEY MARKET FUND ----------------------------- -------------------------------- PERIOD PERIOD PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------- ------------ -------------- --------------- FROM OPERATIONS Net Investment Income (Loss) $ (6,470) $ (231) $ 1,990,158 $ 2,393,710 Net Realized Gain (Loss) on Investments (611,760) (4,523) -- 1,894 Net Change in Unrealized Appreciation (Depreciation) on Investments 231,312 23,747 -- -- ------------- ------------ -------------- --------------- Net Increase (Decrease) in Net Assets from Operations (386,918) 18,993 1,990,158 2,395,604 ------------- ------------ -------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- (1,778,804) (2,074,169) Advisor Class -- -- (38,828) (13,035) A-Class -- -- (3,156) -- C-Class -- -- (4,538) (9,592) H-Class -- -- -- -- Institutional Class -- -- (164,832) (296,914) Realized Gain on Investment Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- Institutional Class -- -- -- -- ------------- ------------ -------------- --------------- Total Distributions to Shareholders -- -- (1,990,158) (2,393,710) ============= ============ ============== =============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- 9,638,090,374 20,632,372,433 Advisor Class -- -- 1,818,601,048 4,386,273,780 A-Class* 1,000 -- 7,843,812 1,000 C-Class** 27,986,649 907,686 1,336,870,248 3,269,540,461 H-Class** 208,851,624 2,068,170 -- -- Institutional Class -- -- 1,000 -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- 1,748,873 2,043,352 Advisor Class -- -- 38,402 13,574 A-Class* -- -- 3,098 -- C-Class** -- -- 4,158 8,818 H-Class** -- -- -- -- Institutional Class -- -- -- 28,440 COST OF SHARES REDEEMED Investor Class -- -- (9,547,221,202) (20,796,030,723) Advisor Class -- -- (1,820,253,258) (4,324,201,196) A-Class* -- -- (3,721,347) -- C-Class** (27,143,512) (916,545) (1,299,397,941) (3,340,221,448) H-Class** (204,726,686) (1,285,366) -- -- Institutional Class -- -- -- (10,036,610) ============= ============ ============== =============== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 4,969,075 773,945 132,607,265 (180,208,119) ------------- ------------ -------------- --------------- Net Increase (Decrease) in Net Assets 4,582,157 792,938 132,607,265 (180,206,225) NET ASSETS--BEGINNING OF PERIOD 792,938 -- 1,487,735,902 1,667,942,127 ------------- ------------ -------------- --------------- NET ASSETS--END OF PERIOD $ 5,375,095 $ 792,938 $1,620,343,167 $ 1,487,735,902 ============= ============ ============== ===============
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 83 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME ------------ ------------ ---------------- ---------------- ---------------- NOVA FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ $ 24.12 $ (.06) $ (.32) $ (.38) $ -- March 31, 2004 15.54 .07 8.51 8.58 -- March 31, 2003 25.56 .08 (10.10) (10.02) -- March 31, 2002 26.85 .12 (1.28) (1.16) (.13) March 31, 2001 41.93 .33 (15.41) (15.08) -- March 31, 2000 34.87 .47 6.60 7.07 (.01) NOVA FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 23.42 (.11) (.32) (.43) -- March 31, 2004 15.17 (.05) 8.30 8.25 -- March 31, 2003 25.11 (.03) (9.91) (9.94) -- March 31, 2002 26.52 (.01) (1.27) (1.28) (.13) March 31, 2001 41.63 .16 (15.27) (15.11) -- March 31, 2000 34.78 .31 6.55 6.86 (.01) NOVA FUND -- A-CLASS SEPTEMBER 30, 2004@ 23.42 (.08) (.32) (.40) -- March 31, 2004 * 23.42 -- -- -- -- NOVA FUND -- C-CLASS SEPTEMBER 30, 2004@ 23.36 (.17) (.32) (.49) -- March 31, 2004 15.20 (.12) 8.28 8.16 -- March 31, 2003 25.28 (.08) (10.00) (10.08) -- March 31, 2002 26.84 (.18) (1.25) (1.43) (.13) March 31, 2001 * 27.18 (.01) (.33) (.34) -- URSA FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 9.17 (.02) .04 .02 -- March 31, 2004 13.06 (.04) (3.45) (3.49) -- March 31, 2003 10.45 .01 2.67 2.68 (.07) March 31, 2002 10.43 .16 (.10) .06 (.04) March 31, 2001 7.68 .40 2.41 2.81 (.06) March 31, 2000 8.66 .32 (1.24) (.92) (.06) URSA FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 8.87 (.04) .04 -- -- March 31, 2004 12.70 (.09) (3.34) (3.43) -- March 31, 2003 10.22 (.06) 2.61 2.55 (.07) March 31, 2002 10.26 .09 (.09) -- (.04) March 31, 2001 7.61 .43 2.28 2.71 (.06) March 31, 2000 8.62 .30 (1.25) (.95) (.06) URSA FUND -- A-CLASS SEPTEMBER 30, 2004@ 8.87 (.03) .03 -- -- March 31, 2004 * 8.87 -- -- -- --
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- ---------------- ---------------- ---------------- NOVA FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ $ -- $ -- $ (.38) $ 23.74 (1.58)% March 31, 2004 -- -- 8.58 24.12 55.25% March 31, 2003 -- -- (10.02) 15.54 (39.20)% March 31, 2002 -- (.13) (1.29) 25.56 (4.36)% March 31, 2001 -- -- (15.08) 26.85 (35.96)% March 31, 2000 -- (.01) 7.06 41.93 20.29% NOVA FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ -- -- (.43) 22.99 (1.84)% March 31, 2004 -- -- 8.25 23.42 54.42% March 31, 2003 -- -- (9.94) 15.17 (39.59)% March 31, 2002 -- (.13) (1.41) 25.11 (4.87)% March 31, 2001 -- -- (15.11) 26.52 (36.30)% March 31, 2000 -- (.01) 6.85 41.63 19.74% NOVA FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- (.40) 23.02 (1.71)% March 31, 2004 * -- -- -- 23.42 0.00% NOVA FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (.49) 22.87 (2.10)% March 31, 2004 -- -- 8.16 23.36 53.72% March 31, 2003 -- -- (10.08) 15.20 (39.87)% March 31, 2002 -- (.13) (1.56) 25.28 (5.37)% March 31, 2001 * -- -- (.34) 26.84 (1.25)% URSA FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ -- -- .02 9.19 0.22% March 31, 2004 (.40) (.40) (3.89) 9.17 (26.90)% March 31, 2003 -- (.07) 2.61 13.06 25.65% March 31, 2002 -- (.04) .02 10.45 0.60% March 31, 2001 -- (.06) 2.75 10.43 36.68% March 31, 2000 -- (.06) (.98) 7.68 (10.64)% URSA FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ -- -- -- 8.87 0.00% March 31, 2004 (.40) (.40) (3.83) 8.87 (27.19)% March 31, 2003 -- (.07) 2.48 12.70 24.95% March 31, 2002 -- (.04) (.04) 10.22 0.02% March 31, 2001 -- (.06) 2.65 10.26 35.70% March 31, 2000 -- (.06) (1.01) 7.61 (11.03)% URSA FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- -- 8.87 0.00% March 31, 2004 * -- -- -- 8.87 0.00%
RATIOS TO AVERAGE NET ASSETS: ------------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) ----------- -------- ----------- --------- ------------ NOVA FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 1.25%**++ 1.25%**++ (0.48)%** 263% $ 174,048 March 31, 2004 1.25%++ 1.25%++ 0.35% 540% 187,051 March 31, 2003 1.27%++ 1.27%++ 0.44% 603% 130,951 March 31, 2002 1.16%++ 1.16%++ 0.44% 401% 222,251 March 31, 2001 1.34% 1.33% 0.89% 117% 251,333 March 31, 2000 1.18% 1.18% 1.26% 311% 748,147 NOVA FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.74%**++ 1.74%**++ (0.97)%** 263% 55,976 March 31, 2004 1.74%++ 1.74%++ (0.24)% 540% 46,405 March 31, 2003 1.77%++ 1.77%++ (0.17)% 603% 27,130 March 31, 2002 1.55%++ 1.55%++ (0.02)% 401% 59,375 March 31, 2001 1.87% 1.87% 0.45% 117% 38,184 March 31, 2000 1.71% 1.70% 0.87% 311% 113,248 NOVA FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.50%**++ 1.50%**++ (0.73)%** 263% 8,378 March 31, 2004 * 0.00%**++# 0.00%**++# 0.00%** 540% 1 NOVA FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.24%**++ 2.24%**++ (1.47)%** 263% 38,283 March 31, 2004 2.26%++ 2.26%++ (0.56)% 540% 32,710 March 31, 2003 2.28%++ 2.28%++ (0.46)% 603% 12,627 March 31, 2002 2.27%++ 2.27%++ (0.72)% 401% 10,355 March 31, 2001 * 1.86%** 1.77%** (0.98)%** 117% 111 URSA FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 1.39%**++ 1.39%**++ (0.47)%** -- 467,765 March 31, 2004 1.38%++ 1.38%++ (0.37)% -- 353,496 March 31, 2003 1.41%++ 1.41%++ 0.06% -- 471,600 March 31, 2002 1.31%++ 1.31%++ 1.56% -- 214,498 March 31, 2001 1.37%++ 1.37%++ 4.69% -- 222,939 March 31, 2000 1.32% 1.31% 3.81% -- 288,218 URSA FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.88%**++ 1.88%**++ (0.96)%** -- 61,204 March 31, 2004 1.87%++ 1.87%++ (0.86)% -- 45,073 March 31, 2003 1.89%++ 1.89%++ (0.45)% -- 39,686 March 31, 2002 1.85%++ 1.85%++ 0.87% -- 7,036 March 31, 2001 1.86%++ 1.86%++ 4.92% -- 2,860 March 31, 2000 1.84% 1.83% 3.51% -- 4,553 URSA FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.64%**++ 1.64%**++ (0.72)%** -- 6,199 March 31, 2004 * 0.00%**++# 0.00%**++# 0.00%** -- 1
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 14, 2001 -- NOVA FUND C-CLASS; MARCH 31, 2004 -- NOVA FUND A-CLASS AND URSA FUND A-CLASS. ** 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. ++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. @ UNAUDITED See Notes to Financial Statements. 84 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME ----------- ---------- -------------- ---------------- -------------- URSA FUND -- C-CLASS SEPTEMBER 30, 2004@ $ 8.89 $ (.07) $ .04 $ (.03) $ -- March 31, 2004 12.80 (.14) (3.37) (3.51) -- March 31, 2003 10.35 (.12) 2.64 2.52 (.07) March 31, 2002 10.43 (.03) (.01) (.04) (.04) March 31, 2001 * 10.29 .01 .13 .14 -- OTC FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 9.73 (.04) (.20) (.24) -- March 31, 2004 7.02 (.09) 2.80 2.71 -- March 31, 2003 10.16 (.08) (3.06) (3.14) -- March 31, 2002 11.19 (.11) (.92) (1.03) -- March 31, 2001 32.40 (.24) (20.80) (21.04) -- March 31, 2000 ++ 15.90 (.22) 16.88 16.66 -- OTC FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 9.46 (.07) (.19) (.26) -- March 31, 2004 6.85 (.13) 2.74 2.61 -- March 31, 2003 9.97 (.11) (3.01) (3.12) -- March 31, 2002 11.04 (.16) (.91) (1.07) -- March 31, 2001 32.16 (.35) (20.60) (20.95) -- March 31, 2000 ++ 15.86 (.33) 16.78 16.45 -- OTC FUND -- A-CLASS SEPTEMBER 30, 2004@ 9.46 (.05) (.20) (.25) -- March 31, 2004 * 9.46 -- -- -- -- OTC FUND -- C-CLASS SEPTEMBER 30, 2004@ 9.41 (.09) (.20) (.29) -- March 31, 2004 6.86 (.18) 2.73 2.55 -- March 31, 2003 10.03 (.14) (3.03) (3.17) -- March 31, 2002 11.20 (.21) (.96) (1.17) -- March 31, 2001 * 11.95 -- (.75) (.75) -- ARKTOS FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 25.69 (.06) .14 .08 -- March 31, 2004 37.79 (.13) (11.97) (12.10) -- March 31, 2003 32.29 7.34 (.70) 6.64 (1.14) March 31, 2002 35.76 1.01 (4.19) (3.18) (.29) March 31, 2001 17.45 1.08 17.23 18.31 -- March 31, 2000 ++ 40.20 .75 (23.40) (22.65) (.10) ARKTOS FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 25.60 (.12) .13 .01 -- March 31, 2004 * 29.97 (.16) (4.21) (4.37) --
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- -------------- --------- ---------- URSA FUND -- C-CLASS September 30, 2004(3) $ -- $ -- $ (.03) $ 8.86 (0.34)% March 31, 2004 (.40) (.40) (3.91) 8.89 (27.62)% March 31, 2003 -- (.07) 2.45 12.80 24.35% March 31, 2002 -- (.04) (.08) 10.35 (0.36)% March 31, 2001 * -- -- .14 10.43 1.36% OTC FUND -- INVESTOR CLASS September 30, 2004@ -- -- (.24) 9.49 (2.47)% March 31, 2004 -- -- 2.71 9.73 38.60% March 31, 2003 -- -- (3.14) 7.02 (30.91)% March 31, 2002 -- -- (1.03) 10.16 (9.20)% March 31, 2001 (.17) (.17) (21.21) 11.19 (65.19)% March 31, 2000 ++ (.16) (.16) 16.50 32.40 105.32% OTC FUND -- ADVISOR CLASS September 30, 2004@ -- -- (.26) 9.20 (2.75)% March 31, 2004 -- -- 2.61 9.46 38.10% March 31, 2003 -- -- (3.12) 6.85 (31.29)% March 31, 2002 -- -- (1.07) 9.97 (9.69)% March 31, 2001 (.17) (.17) (21.12) 11.04 (65.40)% March 31, 2000 ++ (.15) (.15) 16.30 32.16 104.26% OTC FUND -- A-CLASS September 30, 2004@ -- -- (.25) 9.21 (2.64)% March 31, 2004 * -- -- -- 9.46 0.00% OTC FUND -- C-CLASS September 30, 2004@ -- -- (.29) 9.12 (3.08)% March 31, 2004 -- -- 2.55 9.41 37.17% March 31, 2003 -- -- (3.17) 6.86 (31.61)% March 31, 2002 -- -- (1.17) 10.03 (10.45)% March 31, 2001 * -- -- (.75) 11.20 (6.28)% ARKTOS FUND -- INVESTOR CLASS September 30, 2004@ -- -- .08 25.77 0.31% March 31, 2004 -- -- (12.10) 25.69 (32.02)% March 31, 2003 -- (1.14) 5.50 37.79 20.39% March 31, 2002 -- (.29) (3.47) 32.29 (8.84)% March 31, 2001 -- -- 18.31 35.76 104.93% March 31, 2000 ++ -- (.10) (22.75) 17.45 (56.39)% ARKTOS FUND -- ADVISOR CLASS September 30, 2004@ -- -- .01 25.61 0.04% March 31, 2004 * -- -- (4.37) 25.60 (14.58)%
RATIOS TO AVERAGE NET ASSETS ----------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) -------- -------- ---------- --------- ------------- URSA FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.38%**+++ 2.38%**+++ (1.46)%** -- $ 50,932 March 31, 2004 2.39%+++ 2.39%+++ (1.42)% -- 45,604 March 31, 2003 2.40%+++ 2.40%+++ (0.97)% -- 17,540 March 31, 2002 2.47%+++ 2.47%+++ (0.34)% -- 7,007 March 31, 2001 * 2.15%**+++ 2.15%**+++ 3.04%** -- 35 OTC FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 1.22%** 1.22%** (0.90)%** 71% 812,540 March 31, 2004 1.22% 1.22% (0.98)% 139% 858,816 March 31, 2003 1.27% 1.27% (1.08)% 180% 653,999 March 31, 2002 1.08% 1.08% (0.96)% 109% 783,637 March 31, 2001 1.16% 1.16% (1.01)% 228% 1,043,848 March 31, 2000 ++ 1.15% 1.15% (1.01)% 385% 3,762,540 OTC FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.71%** 1.71%** (1.39)%** 71% 28,555 March 31, 2004 1.71% 1.71% (1.47)% 139% 57,535 March 31, 2003 1.76% 1.76% (1.56)% 180% 43,839 March 31, 2002 1.60% 1.60% (1.47)% 109% 20,837 March 31, 2001 1.67% 1.66% (1.50)% 228% 36,836 March 31, 2000 ++ 1.62% 1.61% (1.47)% 385% 113,948 OTC FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.48%** 1.48%** (1.03)%** 71% 875 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 139% 1 OTC FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.21%** 2.21%** (1.90)%** 71% 11,899 March 31, 2004 2.23% 2.23% (1.97)% 139% 13,653 March 31, 2003 2.26% 2.26% (1.98)% 180% 8,331 March 31, 2002 2.24% 2.24% (2.13)% 109% 3,545 March 31, 2001 * 2.37%** 2.09%** (2.03)%** 228% 32 ARKTOS FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 1.40%**+++ 1.40%**+++ (0.48)%** -- 239,332 March 31, 2004 1.40%+++ 1.40%+++ (0.47)% -- 209,994 March 31, 2003 1.42%+++ 1.42%+++ 18.11% -- 146,416 March 31, 2002 1.35%+++ 1.35%+++ 3.16% -- 113,904 March 31, 2001 1.34%+++ 1.33%+++ 6.27% 1,788% 79,028 March 31, 2000 ++ 1.46% 1.46% 2.67% 1,157% 103,160 ARKTOS FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.90%**+++ 1.90%**+++ (0.98)%* -- 26,256 March 31, 2004 * 1.90%**+++ 1.90%**+++ (0.97)%** -- 17,975
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 15, 2001 -- URSA FUND C-CLASS; MARCH 26, 2001 -- OTC FUND C-CLASS; AUGUST 1, 2003 -- ARKTOS FUND ADVISOR CLASS; MARCH 31, 2004 -- OTC FUND A-CLASS. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. FOR YEARS AFTER MARCH 31, 2000, PORTFOLIO TURNOVER IS CALCULATED ONLY FOR ARKTOS MASTER PORTFOLIO. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. ++ OTC FUND -- PER SHARE AMOUNTS FOR THE YEAR ENDED MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 3:1 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000. ARTKOS FUND -- PER SHARE AMOUNTS FOR THE YEAR ENDED MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000. +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. @ UNAUDITED THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 85 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME --------- ---------- -------------- ---------------- ------------- ARKTOS FUND -- A-CLASS SEPTEMBER 30, 2004@ $ 25.60 $ (.09) $ .15 $ .06 $ -- March 31, 2004 * 25.60 -- -- -- -- ARKTOS FUND -- C-CLASS SEPTEMBER 30, 2004@ 24.83 (.18) .13 (.05) -- March 31, 2004 36.92 (.38) (11.71) (12.09) -- March 31, 2003 31.93 3.08 3.05 6.13 (1.14) March 31, 2002 35.74 .43 (3.95) (3.52) (.29) March 31, 2001 * 29.14 -- 6.60 6.60 -- MEDIUS FUND -- A-CLASS SEPTEMBER 30, 2004@ 28.30 (.05) (.99) (1.04) -- March 31, 2004 * 28.30 -- -- -- -- MEDIUS FUND -- C-CLASS SEPTEMBER 30, 2004@ 27.76 (.14) (.98) (1.12) -- March 31, 2004 15.85 (.31) 12.22 11.91 -- March 31, 2003 26.00 (.17) (9.87) (10.04) (.11) March 31, 2002 * 24.53 (.13) 1.60 1.47 -- MEDIUS FUND -- H-CLASS SEPTEMBER 30, 2004@ 28.30 (.05) (1.00) (1.05) -- March 31, 2004 16.04 (.14) 12.40 12.26 -- March 31, 2003 26.08 (.07) (9.86) (9.93) (.11) March 31, 2002 * 25.00 (.03) 1.11 1.08 -- INVERSE MID-CAP FUND -- A-CLASS SEPTEMBER 30, 2004@ 49.01 (.13) .13 -- -- March 31, 2004 * 49.01 -- -- -- -- INVERSE MID-CAP FUND -- C-CLASS SEPTEMBER 30, 2004@ 48.98 (.32) .13 (.19) -- March 31, 2004 * 50.00 (.08) (.94) (1.02) -- INVERSE MID-CAP FUND -- H-CLASS SEPTEMBER 30, 2004@ 49.01 (.12) .11 (.01) -- March 31, 2004 * 50.00 (.05) (.94) (.99) -- MEKROS FUND -- A-CLASS SEPTEMBER 30, 2004@ 26.22 (.03) (1.22) (1.25) -- March 31, 2004 * 26.22 -- -- -- -- MEKROS FUND -- C-CLASS SEPTEMBER 30, 2004@ 25.63 (.16) (1.16) (1.32) -- March 31, 2004 12.75 (.28) 13.16 12.88 -- March 31, 2003 22.47 (.15) (9.53) (9.68) -- March 31, 2002 19.99 (.07) 2.55 2.48 -- March 31, 2001 * 24.28 .17 (4.46) (4.29) --
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- ------------- ---------- ---------- ARKTOS FUND -- A-CLASS SEPTEMBER 30, 2004@ $ -- $ -- $ .06 $ 25.66 0.23% March 31, 2004 * -- -- -- 25.60 0.00% ARKTOS FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (.05) 24.78 (0.20)% March 31, 2004 -- -- (12.09) 24.83 (32.75)% March 31, 2003 -- (1.14) 4.99 36.92 19.02% March 31, 2002 -- (.29) (3.81) 31.93 (9.80)% March 31, 2001 * -- -- 6.60 35.74 22.65% MEDIUS FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- (1.04) 27.26 (3.67)% March 31, 2004 * -- -- -- 28.30 0.00% MEDIUS FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (1.12) 26.64 (4.03)% March 31, 2004 -- -- 11.91 27.76 75.14% March 31, 2003 -- (.11) (10.15) 15.85 (38.65)% March 31, 2002 * -- -- 1.47 26.00 5.99% MEDIUS FUND -- H-CLASS SEPTEMBER 30, 2004@ -- -- (1.05) 27.25 (3.71)% March 31, 2004 -- -- 12.26 28.30 76.43% March 31, 2003 -- (.11) (10.04) 16.04 (38.11)% March 31, 2002 * -- -- 1.08 26.08 4.32% INVERSE MID-CAP FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- -- 49.01 0.00% March 31, 2004 * -- -- -- 49.01 0.00% INVERSE MID-CAP FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (.19) 48.79 (0.39)% March 31, 2004 * -- -- (1.02) 48.98 (2.04)% INVERSE MID-CAP FUND -- H-CLASS SEPTEMBER 30, 2004@ -- -- (.01) 49.00 (0.02)% March 31, 2004 * -- -- (.99) 49.01 (1.98)% MEKROS FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- (1.25) 24.97 (4.77)% March 31, 2004 * -- -- -- 26.22 0.00% MEKROS FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (1.32) 24.31 (5.15)% March 31, 2004 -- -- 12.88 25.63 101.02% March 31, 2003 (.04) (.04) (9.72) 12.75 (43.12)% March 31, 2002 -- -- 2.48 22.47 12.41% March 31, 2001 * -- -- (4.29) 19.99 (17.67)%
RATIOS TO AVERAGE NET ASSETS: --------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) -------- -------- ---------- ---------- ------------- ARKTOS FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.65%**++ 1.65%**++ (0.73)%** -- $ 3,704 March 31, 2004 * 0.00%**++# 0.00%**++# 0.00%** -- 1 ARKTOS FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.39%**++ 2.39%**++ (1.47)%** -- 21,483 March 31, 2004 2.41%++ 2.41%++ (1.48)% -- 34,375 March 31, 2003 2.41%++ 2.41%++ 8.23% -- 2,673 March 31, 2002 2.38%++ 2.38%++ 1.45% -- 1,996 March 31, 2001 * 2.28%**++ 2.27%**++ 0.00%** 1,788% 22 MEDIUS FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.66%** 1.66%** (0.37)%** 424% 253 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 1,239% 4 MEDIUS FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.05)%** 424% 11,089 March 31, 2004 2.41% 2.41% (1.31)% 1,239% 14,444 March 31, 2003 2.43% 2.43% (0.95)% 2,322% 5,610 March 31, 2002 * 2.44%** 2.44%** (0.96)%** 893% 1,734 MEDIUS FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.37)%** 424% 35,368 March 31, 2004 1.66% 1.66% (0.56)% 1,239% 68,193 March 31, 2003 1.69% 1.69% (0.32)% 2,322% 14,634 March 31, 2002 * 1.71%** 1.71%** (0.19)%** 893% 116,176 INVERSE MID-CAP FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.54)%** -- 159 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 1 INVERSE MID-CAP FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.25)%** -- 124 March 31, 2004 * 2.23%** 2.23%** (1.45)%** -- 137 INVERSE MID-CAP FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.49)%** -- 5,656 March 31, 2004 * 1.54%** 1.54%** (0.74)%** -- 2,678 MEKROS FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.67%** 1.67%** (0.23)%** 349% 1,012 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 965% 4 MEKROS FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.28)%** 349% 21,994 March 31, 2004 2.41% 2.41% (1.34)% 965% 48,851 March 31, 2003 2.43% 2.43% (0.91)% 746% 13,530 March 31, 2002 2.44% 2.44% (0.33)% 714% 20,604 March 31, 2001 * 2.54%** 2.52%** 3.80%** -- 2
* SINCE THE COMMENCEMENT OF OPERATIONS: JANUARY 23, 2001 -- MEKROS FUND C-CLASS; MARCH 7, 2001 -- ARKTOS FUND C-CLASS; AUGUST 16, 2001 -- MEDIUS FUND H-CLASS; AUGUST 20, 2001 -- MEDIUS FUND C-CLASS; FEBRUARY 20, 2004 -- INVERSE MID-CAP FUND C-CLASS, INVERSE MID-CAP FUND H-CLASS; MARCH 31, 2004 -- MEDIUS FUND A-CLASS, INVERSE MID-CAP FUND A-CLASS, MEKROS FUND A-CLASS, AND ARKTOS FUND A-CLASS. ** 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. ++ RATIO TO AVERAGE NET ASSETS INCLUDED EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. @ UNAUDITED See Notes to Financial Statements. 86 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME --------- ---------- -------------- ---------------- ------------- MEKROS FUND -- H-CLASS SEPTEMBER 30, 2004@ $ 26.22 $ (.07) $ (1.19) $ (1.26) $ -- March 31, 2004 12.94 (.14) 13.42 13.28 -- March 31, 2003 22.61 (.03) (9.60) (9.63) -- March 31, 2002 19.99 .16 2.46 2.62 -- March 31, 2001 * 25.00 .42 (5.43) (5.01) -- INVERSE SMALL-CAP FUND -- A-CLASS SEPTEMBER 30, 2004@ 48.80 (.11) 1.00 .89 -- March 31, 2004 * 48.80 -- -- -- -- INVERSE SMALL-CAP FUND -- C-CLASS SEPTEMBER 30, 2004@ 48.77 (.31) 1.01 .70 -- March 31, 2004 * 50.00 (.08) (1.15) (1.23) -- INVERSE SMALL-CAP FUND -- H-CLASS SEPTEMBER 30, 2004@ 48.80 (.12) .99 .87 -- March 31, 2004 * 50.00 (.04) (1.16) (1.20) -- U.S. GOVERNMENT BOND FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 11.03 .21 (.17) .04 (.21) March 31, 2004 10.95 .41 .08 .49 (.41) March 31, 2003 9.12 .41 1.83 2.24 (.41) March 31, 2002 9.82 .43 (.70) (.27) (.43) March 31, 2001 9.34 .42 .48 .90 (.42) March 31, 2000 10.05 .46 (.71) (.25) (.46) U.S. GOVERNMENT BOND FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 11.04 .17 (.15) .02 (.18) March 31, 2004 * 10.00 .23 1.04 1.27 (.23) U.S. GOVERNMENT BOND FUND -- A-CLASS SEPTEMBER 30, 2004@ 11.05 .19 (.18) .01 (.19) March 31, 2004 * 11.05 -- -- -- -- U.S. GOVERNMENT BOND FUND -- C-CLASS SEPTEMBER 30, 2004@ 11.05 .15 (.16) (.01) (.15) March 31, 2004 10.97 .30 .08 .38 (.30) March 31, 2003 9.12 .31 1.85 2.16 (.31) March 31, 2002 * 9.42 .32 (.32) -- (.30)
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- ------------- --------- ---------- MEKROS FUND -- H-CLASS SEPTEMBER 30, 2004@ $ -- $ -- $ (1.26) $ 24.96 (4.81)% March 31, 2004 -- -- 13.28 26.22 102.63% March 31, 2003 (.04) (.04) (9.67) 12.94 (42.63)% March 31, 2002 -- -- 2.62 22.61 13.11% March 31, 2001 * -- -- (5.01) 19.99 (20.04)% INVERSE SMALL-CAP FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- .89 49.69 1.82% March 31, 2004 * -- -- -- 48.80 0.00% INVERSE SMALL-CAP FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- .70 49.47 1.44% March 31, 2004 * -- -- (1.23) 48.77 (2.46)% INVERSE SMALL-CAP FUND -- H-CLASS SEPTEMBER 30, 2004@ -- -- .87 49.67 1.78% March 31, 2004 * -- -- (1.20) 48.80 (2.40)% U.S. GOVERNMENT BOND FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ -- (.21) (.17) 10.86 0.45% March 31, 2004 -- (.41) .08 11.03 4.65% March 31, 2003 -- (.41) 1.83 10.95 24.93% March 31, 2002 -- (.43) (.70) 9.12 (2.88)% March 31, 2001 -- (.42) .48 9.82 9.81% March 31, 2000 -- (.46) (.71) 9.34 (2.26)% U.S. GOVERNMENT BOND FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ -- (.18) (.16) 10.88 0.30% March 31, 2004 * -- (.23) 1.04 11.04 12.84% U.S. GOVERNMENT BOND FUND -- A-CLASS SEPTEMBER 30, 2004@ -- (.19) (.18) 10.87 0.23% March 31, 2004 * -- -- -- 11.05 0.00% U.S. GOVERNMENT BOND FUND -- C-CLASS SEPTEMBER 30, 2004@ -- (.15) (.16) 10.89 0.03% March 31, 2004 -- (.30) .08 11.05 3.59% March 31, 2003 -- (.31) 1.85 10.97 23.93% March 31, 2002 * -- (.30) (.30) 9.12 (0.14)%
RATIOS TO AVERAGE NET ASSETS: --------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) -------- -------- ---------- --------- ------------- MEKROS FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.55)%** 349% $ 122,554 March 31, 2004 1.66% 1.66% (0.62)% 965% 174,320 March 31, 2003 1.69% 1.69% (0.20)% 746% 32,101 March 31, 2002 1.61% 1.61% 0.74% 714% 120,045 March 31, 2001 * 1.74%** 1.73%** 4.24%** -- 36,704 INVERSE SMALL-CAP FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.66%** 1.66%** (0.44)%** -- 248 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 1 INVERSE SMALL-CAP FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.21)%** -- 17,666 March 31, 2004 * 2.24%** 2.24%** (1.42)%** -- 492 INVERSE SMALL-CAP FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.47)%** -- 17,024 March 31, 2004 * 1.54%** 1.54%** (0.72)%** -- 5,054 U.S. GOVERNMENT BOND FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 0.95%** 0.95%** 4.04%** 283% 32,093 March 31, 2004 0.95% 0.95% 3.84% 1,143% 25,188 March 31, 2003 0.97% 0.97% 4.00% 2,404% 51,370 March 31, 2002 0.88% 0.88% 4.39% 860% 14,138 March 31, 2001 0.97% 0.96% 4.38% 1,107% 80,686 March 31, 2000 0.93% 0.92% 5.01% 890% 28,105 U.S. GOVERNMENT BOND FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.46%** 1.46%** 3.35%** 283% 114,730 March 31, 2004 * 1.45%** 1.45%** 3.21%** 1,143% 46,690 U.S. GOVERNMENT BOND FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.21%** 1.21%** 3.75%** 283% 366 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** 1,143% 1 U.S. GOVERNMENT BOND FUND -- C-CLASS SEPTEMBER 30, 2004@ 1.95%** 1.95%** 2.91%** 283% 6,225 March 31, 2004 1.96% 1.96% 2.85% 1,143% 3,828 March 31, 2003 1.95% 1.95% 2.86% 2,404% 2,163 March 31, 2002 * 1.79%** 1.79%** 3.53%** 860% 209
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 1, 2000 -- MEKROS FUND H-CLASS; MAY 2, 2001 -- U.S. GOVERNMENT BOND FUND C-CLASS; AUGUST 1, 2003 -- U.S. GOVERNMENT BOND FUND ADVISOR CLASS; FEBRUARY 20, 2004 -- INVERSE SMALL-CAP FUND C-CLASS AND INVERSE SMALL-CAP FUND H-CLASS; MARCH 31, 2004 -- INVERSE SMALL-CAP FUND A-CLASS AND U.S. GOVERNMENT BOND FUND A-CLASS. ** 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. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. @ UNAUDITED See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 87 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME --------- ---------- -------------- ---------------- ------------- JUNO FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ $ 19.77 $ (.04) $ (.20) $ (.24) $ -- March 31, 2004 21.23 (.09) (1.37) (1.46) -- March 31, 2003 26.40 (.04) (5.13) (5.17) -- March 31, 2002 ++ 25.59 .27 .54 .81 -- March 31, 2001 ++ 27.00 1.23 (2.64) (1.41) -- March 31, 2000 ++ 26.10 .93 .12 1.05 (.15) JUNO FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 19.71 (.09) (.21) (.30) -- March 31, 2004 * 22.41 (.13) (2.57) (2.70) -- JUNO FUND -- A-CLASS SEPTEMBER 30, 2004@ 19.71 (.07) (.20) (.27) -- March 31, 2004 * 19.71 -- -- -- -- JUNO FUND -- C-CLASS SEPTEMBER 30, 2004@ 19.24 (.14) (.19) (.33) -- March 31, 2004 20.88 (.29) (1.35) (1.64) -- March 31, 2003 26.16 (.17) (5.11) (5.28) -- March 31, 2002 ++ 25.59 .15 .42 .57 -- March 31, 2001 *++ 25.65 -- (.06) (.06) -- LARGE-CAP EUROPE FUND -- A-CLASS SEPTEMBER 30, 2004@ 14.98 (.03) .43 .40 -- March 31, 2004 * 14.98 -- -- -- -- LARGE-CAP EUROPE FUND -- C-CLASS SEPTEMBER 30, 2004@ 14.62 (.09) .42 .33 -- March 31, 2004 9.74 (1.18) 6.77 5.59 -- March 31, 2003 15.22 (.10) (5.38) (5.48) -- March 31, 2002 * 19.09 (.11) (3.76) (3.87) -- LARGE-CAP EUROPE FUND -- H-CLASS SEPTEMBER 30, 2004@ 14.98 (.04) .45 .41 -- March 31, 2004 9.88 (1.65) 7.46 5.81 -- March 31, 2003 15.30 (.02) (5.40) (5.42) -- March 31, 2002 17.72 .19 (2.61) (2.42) -- March 31, 2001 * 25.00 .83 (8.11) (7.28) -- LARGE-CAP JAPAN FUND -- A-CLASS SEPTEMBER 30, 2004@ 34.60 (.06) (5.89) (5.95) -- March 31, 2004 * 34.60 -- -- -- -- LARGE-CAP JAPAN FUND -- C-CLASS SEPTEMBER 30, 2004@ 34.18 (.18) (5.80) (5.98) -- March 31, 2004 18.96 (.80) 16.26 15.46 -- March 31, 2003 ++ 27.24 (.18) (8.10) (8.28) -- March 31, 2002 *++ 25.65 (.03) 1.62 1.59 --
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- ------------- --------- ---------- JUNO FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ $ -- $ -- $ (.24) $ 19.53 (1.21)% March 31, 2004 -- -- (1.46) 19.77 (6.88)% March 31, 2003 -- -- (5.17) 21.23 (19.53)% March 31, 2002 ++ -- -- .81 26.40 3.17% March 31, 2001 ++ -- -- (1.41) 25.59 (5.22)% March 31, 2000 ++ -- (.15) .90 27.00 3.97% JUNO FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ -- -- (.30) 19.41 (1.52)% March 31, 2004 * -- -- (2.70) 19.71 (12.05)% JUNO FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- (.27) 19.44 (1.37)% March 31, 2004 * -- -- -- 19.71 0.00% JUNO FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (.33) 18.91 (1.72)% March 31, 2004 -- -- (1.64) 19.24 (7.85)% March 31, 2003 -- -- (5.28) 20.88 (20.13)% March 31, 2002 ++ -- -- .57 26.16 2.23% March 31, 2001 *++ -- -- (.06) 25.59 (0.23)% LARGE-CAP EUROPE FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- .40 15.38 2.67% March 31, 2004 * -- -- -- 14.98 0.00% LARGE-CAP EUROPE FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- .33 14.95 2.26% March 31, 2004 (.71) (.71) 4.88 14.62 57.29% March 31, 2003 -- -- (5.48) 9.74 (36.01)% March 31, 2002 * -- -- (3.87) 15.22 (20.27)% LARGE-CAP EUROPE FUND -- H-CLASS SEPTEMBER 30, 2004@ -- -- .41 15.39 2.74% March 31, 2004 (.71) (.71) 5.10 14.98 58.72% March 31, 2003 -- -- (5.42) 9.88 (35.42)% March 31, 2002 -- -- (2.42) 15.30 (13.66)% March 31, 2001 * -- -- (7.28) 17.72 (29.12)% LARGE-CAP JAPAN FUND -- A-CLASS SEPTEMBER 30, 2004@ -- -- (5.95) 28.65 (17.20)% March 31, 2004 * -- -- -- 34.60 0.00% LARGE-CAP JAPAN FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (5.98) 28.20 (17.50)% March 31, 2004 (.24) (.24) 15.22 34.18 81.72% March 31, 2003 ++ -- -- (8.28) 18.96 (30.40)% March 31, 2002 *++ -- -- 1.59 27.24 6.20%
RATIOS TO AVERAGE NET ASSETS: ---------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) -------- -------- ---------- --------- ------------- JUNO FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 1.34%**+++ 1.34%**+++ (0.42)%** 45% $ 1,592,954 March 31, 2004 1.38%+++ 1.38%+++ (0.45)% 187% 898,294 March 31, 2003 1.41%+++ 1.41%+++ (0.45)% -- 128,958 March 31, 2002 ++ 1.41%+++ 1.41%+++ 1.12% -- 32,293 March 31, 2001 ++ 1.33%+++ 1.33%+++ 4.61% -- 10,745 March 31, 2000 ++ 1.47% 1.47% 3.39% -- 9,941 JUNO FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.84%**+++ 1.84%**+++ (0.92)%** 45% 136,210 March 31, 2004 * 1.86%**+++ 1.86%**+++ (0.93)%** 187% 52,298 JUNO FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.60%**+++ 1.60%**+++ (0.68)%** 45% 119,907 March 31, 2004 * 0.00%**+++# 0.00%**+++# 0.00%** 187% 5,057 JUNO FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.34%**+++ 2.34%**+++ (1.42)%** 45% 890,654 March 31, 2004 2.38%+++ 2.38%+++ (1.45)% 187% 489,918 March 31, 2003 2.40%+++ 2.40%+++ (1.64)% -- 60,969 March 31, 2002 ++ 2.47%+++ 2.47%+++ 0.55% -- 877 March 31, 2001 *++ 2.48%**+++ 2.48%**+++ 2.70** -- 1,702 LARGE-CAP EUROPE FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.35)%** -- 117 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 1 LARGE-CAP EUROPE FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.24)%** -- 1,888 March 31, 2004 2.47% 2.47% (8.31)% -- 1,999 March 31, 2003 2.45% 2.45% (0.96)% -- 1,957 March 31, 2002 * 2.69%** 2.69%** (0.82)%** -- 116 LARGE-CAP EUROPE FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.52)%** -- 31,844 March 31, 2004 1.73% 1.73% (11.25)% -- 35,914 March 31, 2003 1.68% 1.68% (0.13)% -- 4,698 March 31, 2002 1.76% 1.76% 1.18% -- 9,697 March 31, 2001 * 2.06%** 2.06%** 4.03%** 350% 9,977 LARGE-CAP JAPAN FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.65%** 1.65%** (0.41)%** -- 193 March 31, 2004 * 0.00%**# 0.00%**# 0.00%** -- 55 LARGE-CAP JAPAN FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.40%** 2.40%** (1.21)%** -- 6,448 March 31, 2004 2.42% 2.42% (2.85)% -- 5,572 March 31, 2003 ++ 2.36% 2.36% (0.68)% -- 9 March 31, 2002 *++ 2.20%** 2.20%** (0.72)%** -- 12
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP EUROPE FUND H-CLASS; MARCH 28, 2001 -- JUNO FUND C-CLASS; MAY 10, 2001-- LARGE-CAP EUORPE C-CLASS; MARCH 1, 2002 -- LARGE-CAP JAPAN FUND C-CLASS; AUGUST 1,2003 -- JUNO FUND ADVISOR CLASS; MARCH 31, 2004 -- JUNO FUND A-CLASS, LARGE-CAP EUROPE FUND A-CLASS AND LARGE-CAP JAPAN FUND A-CLASS. ** 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. ++ JUNO FUND -- PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2000 THROUGH MARCH 31, 2002 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE FEBRUARY 10, 2003. LARGE-CAP JAPAN FUND -- PER SHARE AMOUNTS FOR THE PERIOD ENDED MARCH 31, 2002 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER PORTFOLIO. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. @ UNAUDITED See Notes to Financial Statements. 88 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME ---------- ---------- -------------- --------------- ------------- LARGE-CAP JAPAN FUND -- H-CLASS SEPTEMBER 30, 2004@ $ 34.60 $ (.09) $ (5.84) $ (5.93) $ -- March 31, 2004 19.05 (.40) 16.19 15.79 -- March 31, 2003 ++ 27.27 (.03) (8.19) (8.22) -- March 31, 2002 ++ 39.12 .48 (12.33) (11.85) -- March 31, 2001 *++ 75.00 2.07 (37.95) (35.88) -- SMALL-CAP VALUE FUND -- A CLASS SEPTEMBER 30, 2004 * @ 25.28 (.01) .99 .98 -- SMALL-CAP VALUE FUND -- C CLASS SEPTEMBER 30, 2004 @ 25.59 (.14) .68 .54 -- March 31, 2004 * 25.00 (.05) .64 .59 -- SMALL-CAP VALUE FUND -- H CLASS SEPTEMBER 30, 2004 @ 25.62 (.03) .68 .65 -- March 31, 2004 * 25.00 (.01) .63 .62 -- MID-CAP VALUE FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 24.58 (.01) .49 .48 -- MID-CAP VALUE FUND -- C-CLASS SEPTEMBER 30, 2004 @ 25.11 (.09) (.04) (.13) -- March 31, 2004 * 25.00 (.02) .13 .11 -- MID-CAP VALUE FUND -- H-CLASS SEPTEMBER 30, 2004 @ 25.13 -- (.06) (.06) -- March 31, 2004 * 25.00 .01 .12 .13 -- LARGE-CAP VALUE FUND -- A-CLASS SEPTEMBER 30, 2004 * @ 24.68 (.01) .41 .40 -- LARGE-CAP VALUE FUND -- C-CLASS SEPTEMBER 30, 2004@ 24.85 (.03) .17 .14 -- March 31, 2004 * 25.00 (.02) (.13) (.15) -- LARGE-CAP VALUE FUND -- H-CLASS SEPTEMBER 30, 2004 @ 24.87 .04 .17 .21 -- March 31, 2004 * 25.00 .01 (.14) (.13) -- SMALL-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 24.43 (.02) 1.05 1.03 -- SMALL-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004 @ 25.33 (.19) .24 .05 -- March 31, 2004 * 25.00 (.04) .37 .33 -- SMALL-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004 @ 25.34 (.09) .21 .12 -- March 31, 2004 * 25.00 (.02) .36 .34 -- MID-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 23.91 (.02) .42 .40 --
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- ------------- --------- ---------- LARGE-CAP JAPAN FUND -- H-CLASS SEPTEMBER 30, 2004@ $ -- $ -- $ (5.93) $ 28.67 (17.14)% March 31, 2004 (.24) (.24) 15.55 34.60 83.07% March 31, 2003 ++ -- -- (8.22) 19.05 (30.14)% March 31, 2002 ++ -- -- (11.85) 27.27 (30.29)% March 31, 2001 *++ -- -- (35.88) 39.12 (47.84)% SMALL-CAP VALUE FUND -- A CLASS SEPTEMBER 30, 2004 * @ -- -- .98 26.26 3.88% SMALL-CAP VALUE FUND -- C CLASS SEPTEMBER 30, 2004 @ -- -- .54 26.13 2.11% March 31, 2004 * -- -- .59 25.59 2.36% SMALL-CAP VALUE FUND -- H CLASS SEPTEMBER 30, 2004 @ -- -- .65 26.27 2.54% March 31, 2004 * -- -- .62 25.62 2.48% MID-CAP VALUE FUND -- A-CLASS SEPTEMBER 30, 2004 *@ -- -- .48 25.06 1.95% MID-CAP VALUE FUND -- C-CLASS SEPTEMBER 30, 2004 @ -- -- (.13) 24.98 (0.52)% March 31, 2004 * -- -- .11 25.11 0.44% MID-CAP VALUE FUND -- H-CLASS SEPTEMBER 30, 2004 @ -- -- (.06) 25.07 (0.24)% March 31, 2004 * -- -- .13 25.13 0.52% LARGE-CAP VALUE FUND -- A-CLASS SEPTEMBER 30, 2004 * @ -- -- .40 25.08 1.62% LARGE-CAP VALUE FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- .14 24.99 0.56% March 31, 2004 * -- -- (.15) 24.85 (0.60)% LARGE-CAP VALUE FUND -- H-CLASS SEPTEMBER 30, 2004 @ -- -- .21 25.08 0.84% March 31, 2004 * -- -- (.13) 24.87 (0.52)% SMALL-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ -- -- 1.03 25.46 4.22% SMALL-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004 @ -- -- .05 25.38 0.20% March 31, 2004 * -- -- .33 25.33 1.32% SMALL-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004 @ -- -- .12 25.46 0.47% March 31, 2004 * -- -- .34 25.34 1.36% MID-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ -- -- .40 24.31 1.67%
RATIOS TO AVERAGE NET ASSETS: ----------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) -------- -------- ---------- --------- ------------- LARGE-CAP JAPAN FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.64%** 1.64%** (0.55)%** -- $ 34,326 March 31, 2004 1.66% 1.66% 1.46% -- 177,760 March 31, 2003 ++ 1.69% 1.69% (0.06)% -- 2,683 March 31, 2002 ++ 1.84% 1.84% 1.44% -- 23,873 March 31, 2001 *++ 1.77%** 1.77%** 4.17%** 699% 14,606 SMALL-CAP VALUE FUND -- A CLASS SEPTEMBER 30, 2004 * @ 1.55%** 1.55%** (0.81)%** 338% 18 SMALL-CAP VALUE FUND -- C CLASS SEPTEMBER 30, 2004 @ 2.25%** 2.25%** (1.08)%** 338% 1,911 March 31, 2004 * 2.11%** 2.11%** (1.68)%** 177% 2,207 SMALL-CAP VALUE FUND -- H CLASS SEPTEMBER 30, 2004 @ 1.51%** 1.51%** (0.21)%** 338% 116,386 March 31, 2004 * 1.41%** 1.41%** (0.21)%** 177% 19,900 MID-CAP VALUE FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 1.57%** 1.57%** (0.54)%** 736% 1 MID-CAP VALUE FUND -- C-CLASS SEPTEMBER 30, 2004 @ 2.26%** 2.26%** (0.74)%** 736% 2,109 March 31, 2004 * 2.11%** 2.11%** (0.50)%** 172% 710 MID-CAP VALUE FUND -- H-CLASS SEPTEMBER 30, 2004 @ 1.52%** 1.52%** 0.02%** 736% 49,116 March 31, 2004 * 1.41%** 1.41%** 0.19%** 172% 18,064 LARGE-CAP VALUE FUND -- A-CLASS SEPTEMBER 30, 2004 * @ 1.63%** 1.63%** (0.55)%** 345% 1 LARGE-CAP VALUE FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.25%** 2.25%** (0.28)%** 345% 2,500 March 31, 2004 * 2.10%** 2.10%** (0.53)%** 202% 2,612 LARGE-CAP VALUE FUND -- H-CLASS SEPTEMBER 30, 2004 @ 1.51%** 1.51%** 0.35%** 345% 113,621 March 31, 2004 * 1.41%** 1.41%** 0.34%** 202% 8,094 SMALL-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 1.68%** 1.68%** (0.82)%** 517% 1 SMALL-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004 @ 2.25%** 2.25%** (1.54)%** 517% 4,099 March 31, 2004 * 2.08%** 2.08%** (1.31)%** 117% 2,505 SMALL-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004 @ 1.52%** 1.52%** (0.77)%** 517% 89,367 March 31, 2004 * 1.41%** 1.41%** (0.85)%** 117% 2,544 MID-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 1.62%** 1.62%** (1.03)%** 563% 1
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP JAPAN FUND H-CLASS; FEBRUARY 20, 2004 -- SMALL-CAP VALUE FUND C-CLASS, SMALL-CAP VALUE FUND H-CLASS, MID-CAP VALUE FUND C-CLASS, MID-CAP VALUE FUND H-CLASS, LARGE-CAP VALUE FUND C-CLASS, LARGE-CAP VALUE FUND H-CLASS, SMALL-CAP GROWTH FUND C-CLASS, SMALL-CAP GROWTH FUND H-CLASS; SEPTEMBER 1, 2004 -- SMALL-CAP VALUE FUND A-CLASS, MID-CAP VALUE FUND A-CLASS, LARGE-CAP VALUE FUND A-CLASS, SMALL-CAP GROWTH FUND A-CLASS, AND MID-CAP GROWTH FUND A-CLASS. ** 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. ++ LARGE-CAP JAPAN FUND -- PER SHARE AMOUNTS FOR THE PERIOD 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. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 89 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME ----------- ---------- -------------- --------------- ------------- MID-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004@ $ 25.15 $ (.19) $ (.73) $ (.92) $ -- March 31, 2004 * 25.00 (.05) .20 .15 -- MID-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004@ 25.17 (.09) (.75) (.84) -- March 31, 2004 * 25.00 (.02) .19 .17 -- LARGE-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 23.44 -- (.13) (.13) -- LARGE-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004@ 24.18 (.03) (.93) (.96) -- March 31, 2004 * 25.00 (.05) (.77) (.82) -- LARGE-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004@ 24.18 (.01) (.86) (.87) -- March 31, 2004 * 25.00 -- (.82) (.82) -- U.S. GOVERNMENT MONEY MARKET FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)& March 31, 2004 1.00 --&& -- -- (--)&& March 31, 2003 1.00 .01 -- .01 (.01) March 31, 2002 1.00 .02 -- .02 (.02) March 31, 2001 1.00 .05 -- .05 (.05) March 31, 2000 1.00 .04 -- .04 (.04) U.S. GOVERNMENT MONEY MARKET FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)& March 31, 2004 1.00 --&& -- -- (--)&& March 31, 2003 1.00 --&&& -- -- (--)&&& March 31, 2002 1.00 .02 -- .02 (.02) March 31, 2001 1.00 .05 -- .05 (.05) March 31, 2000 1.00 .04 -- .04 (.04) U.S. GOVERNMENT MONEY MARKET FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)& March 31, 2004 * 1.00 -- -- -- -- U.S. GOVERNMENT MONEY MARKET FUND -- C-CLASS SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)& March 31, 2004 1.00 --&& -- -- (--)&& March 31, 2003 1.00 --&&& -- -- (--)&&& March 31, 2002 1.00 .01 -- .01 (.01) March 31, 2001 * 1.00 .02 -- .02 (.02) U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL CLASS SEPTEMBER 30, 2004@ 1.00 --& -- -- (--)& March 31, 2004 1.00 .01 -- .01 (.01) March 31, 2003 * 1.00 .01 -- .01 (.01)
DISTRIBUTIONS NET INCREASE NET ASSET FROM NET (DECREASE) IN VALUE, TOTAL REALIZED TOTAL NET ASSET END OF INVESTMENT CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN ------------- ------------- ------------- --------- ---------- MID-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004@ $ -- $ -- $ (.92) $ 24.23 (3.66)% March 31, 2004 * -- -- .15 25.15 0.60% MID-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004@ -- -- (.84) 24.33 (3.34)% March 31, 2004 * -- -- .17 25.17 0.68% LARGE-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ -- -- (.13) 23.31 (0.55)% LARGE-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004@ -- -- (.96) 23.22 (3.97)% March 31, 2004 * -- -- (.82) 24.18 (3.28)% LARGE-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004@ -- -- (.87) 23.31 (3.60)% March 31, 2004 * -- -- (.82) 24.18 (3.28)% U.S. GOVERNMENT MONEY MARKET FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.15% March 31, 2004 -- (--)&& -- 1.00 0.18% March 31, 2003 -- (.01) -- 1.00 0.71% March 31, 2002 -- (.02) -- 1.00 2.35% March 31, 2001 -- (.05) -- 1.00 5.48% March 31, 2000 -- (.04) -- 1.00 4.48% U.S. GOVERNMENT MONEY MARKET FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.02% March 31, 2004 -- (--)&& -- 1.00 0.01% March 31, 2003 -- (--)&&& -- 1.00 0.27% March 31, 2002 -- (.02) -- 1.00 1.84% March 31, 2001 -- (.05) -- 1.00 4.99% March 31, 2000 -- (.04) -- 1.00 3.94% U.S. GOVERNMENT MONEY MARKET FUND -- A-CLASS SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.06% March 31, 2004 * -- -- -- 1.00 0.00% U.S. GOVERNMENT MONEY MARKET FUND -- C-CLASS SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.00% March 31, 2004 -- (--)&& -- 1.00 0.01% March 31, 2003 -- (--)&&& -- 1.00 0.08% March 31, 2002 -- (.01) -- 1.00 1.35% March 31, 2001 * -- (.02) -- 1.00 1.97% U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL CLASS SEPTEMBER 30, 2004@ -- (--)& -- 1.00 0.33% March 31, 2004 -- (.01) -- 1.00 0.54% March 31, 2003 * -- (.01) -- 1.00 0.63%
RATIOS TO AVERAGE NET ASSETS: --------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) -------- -------- ---------- --------- ------------- MID-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.25%** 2.25%** (1.55)%** 563% $ 1,462 March 31, 2004 * 2.10%** 2.10%** (1.50)%** 356% 1,172 MID-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 200@ 1.51%** 1.51%** (0.77)%** 563% 56,400 March 31, 2004 * 1.41%** 1.41%** (0.75)%** 356% 625 LARGE-CAP GROWTH FUND -- A-CLASS SEPTEMBER 30, 2004 *@ 1.56%** 1.56%** 0.03%** 1,718% 1 LARGE-CAP GROWTH FUND -- C-CLASS SEPTEMBER 30, 2004@ 2.26%** 2.26%** (0.25)%** 1,718% 683 March 31, 2004 * 2.08%** 2.08%** (1.25)%** 296% -- LARGE-CAP GROWTH FUND -- H-CLASS SEPTEMBER 30, 2004@ 1.52%** 1.52%** (0.07)%** 1,718% 4,691 March 31, 2004 * 1.41%** 1.41%** (0.16)%** 296% 793 U.S. GOVERNMENT MONEY MARKET FUND -- INVESTOR CLASS SEPTEMBER 30, 2004@ 0.90%** 0.90%** 0.31%** -- 1,149,680 March 31, 2004 0.90% 0.90% 0.18% -- 1,057,062 March 31, 2003 0.92% 0.92% 0.71% -- 1,218,676 March 31, 2002 0.85% 0.85% 2.23% -- 979,433 March 31, 2001 0.85% 0.85% 5.38% -- 948,275 March 31, 2000 0.89% 0.88% 4.36% -- 686,198 U.S. GOVERNMENT MONEY MARKET FUND -- ADVISOR CLASS SEPTEMBER 30, 2004@ 1.40%** 1.17%** 1.03%** -- 247,985 March 31, 2004 1.38% 1.08% 0.01% -- 249,599 March 31, 2003 1.41% 1.37% 0.32% -- 187,513 March 31, 2002 1.32% 1.32% 1.87% -- 371,356 March 31, 2001 1.34% 1.34% 4.87% -- 451,796 March 31, 2000 1.41% 1.40% 3.85% -- 212,181 U.S. GOVERNMENT MONEY MARKET FUND -- A-CLASS SEPTEMBER 30, 2004@ 1.14%** 1.14%** 0.25%** -- 4,127 March 31, 2004 * 0.00%** 0.00%**# 0.00%**# -- 1 U.S. GOVERNMENT MONEY MARKET FUND -- C-CLASS SEPTEMBER 30, 2004@ 1.90%** 1.21%** 0.01%** -- 168,550 March 31, 2004 1.90% 1.08% 0.01% -- 131,704 March 31, 2003 1.91% 1.50% 0.06% -- 201,745 March 31, 2002 1.80% 1.80% 1.13% -- 47,920 March 31, 2001 * 1.79%** 1.78%** 4.31%** -- 37,514 U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL CLASS SEPTEMBER 30, 2004@ 0.90%** 0.55%** 0.66%** -- 50,001 March 31, 2004 0.90% 0.55% 0.54% -- 50,000 March 31, 2003 * 0.90%** 0.55%** 0.80%** -- 60,008
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 19, 2000 -- U.S. GOVERNMENT MONEY MARKET FUND C-CLASS; AUGUST 1, 2002 -- U.S. GOVERNMENT MONEY MARKET FUND INSTITUTIONAL CLASS; FEBRUARY 20, 2004 -- MID-CAP GROWTH FUND C-CLASS, MID-CAP GROWTH FUND H-CLASS, LARGE-CAP GROWTH FUND C-CLASS, AND LARGE-CAP GROWTH FUND H-CLASS; MARCH 31, 2004 -- U.S. GOVERNMENT MONEY MARKET FUND A-CLASS; SEPTEMBER 1, 2004 -- LARGE-CAP GROWTH FUND A-CLASS. ** 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. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. & LESS THAN $0.1 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND INVESTOR CLASS ACTUAL AMOUNT = $.0015; U.S. GOVERNMENT MONEY MARKET FUND ADVISOR CLASS ACTUAL AMOUNT = $.0002; U.S. GOVERNMENT MONEY MARKET FUND A-CLASS ACTUAL AMOUNT = $.0006; U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL AMOUNT = $.00003; U.S. GOVERNMENT MONEY MARKET FUND INSTITUTIONAL CLASS ACTUAL AMOUNT = $.0033. && LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND INVESTOR CLASS ACTUAL AMOUNT = $.0019; U.S. GOVERNMENT MONEY MARKET ADVISOR CLASS ACTUAL AMOUNT = $.00005; U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL AMOUNT = $.00006. &&& LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND ADVISOR CLASS ACTUAL AMOUNT = $.003; U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL AMOUNT = $.0006. @ UNAUDITED See Notes to Financial Statements. 90 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- NOVA MASTER PORTFOLIO MARKET VALUE SHARES (NOTE 1) ------- ------------- COMMON STOCKS 90.0% FINANCIALS 18.1% BANKS 5.2% Bank of America Corp. 74,300 $ 3,219,419 Wachovia Corp.+ 52,220 2,451,729 SunTrust Banks, Inc.+ 26,690 1,879,243 Wells Fargo & Co. 23,440 1,397,727 PNC Financial Services Group, Inc. 25,170 1,361,697 KeyCorp 41,250 1,303,500 Comerica, Inc.+ 20,450 1,213,707 U.S. Bancorp+ 34,680 1,002,252 National City Corp. 12,030 464,599 M&T Bank Corp. 450 43,065 ------------- TOTAL BANKS 14,336,938 ------------- INSURANCE 4.5% American International Group, Inc. 48,250 3,280,517 Allstate Corp.+ 37,780 1,813,062 Prudential Financial, Inc. 33,480 1,574,899 ACE Ltd.+ 32,170 1,288,730 Loews Corp. 21,700 1,269,450 Lincoln National Corp. 25,620 1,204,140 SAFECO Corp.+ 21,750 992,888 Torchmark Corp. 11,670 620,611 Cincinnati Financial Corp. 12,750 525,555 ------------- TOTAL INSURANCE 12,569,852 ------------- DIVERSIFIED FINANCIALS 2.7% Citigroup, Inc. 101,900 4,495,828 J.P. Morgan Chase & Co. 59,920 2,380,621 Principal Financial Group, Inc.+ 18,510 665,805 ------------- TOTAL DIVERSIFIED FINANCIALS 7,542,254 ------------- CAPITAL MARKETS 2.2% Merrill Lynch & Co., Inc. 41,970 2,086,748 Bear Stearns Cos., Inc.+ 13,790 1,326,184 State Street Corp.+ 29,810 1,273,185 Janus Capital Group, Inc.+ 75,450 1,026,875 Morgan Stanley 6,730 331,789 Goldman Sachs Group, Inc. 500 46,620 ------------- TOTAL CAPITAL MARKETS 6,091,401 ------------- CONSUMER FINANCE 1.6% Capital One Financial Corp.+ 19,930 1,472,827 MBNA Corp. 53,710 1,353,492 Providian Financial Corp.*+ 74,300 1,154,622 American Express Co.+ 10,700 550,622 ------------- TOTAL CONSUMER FINANCE 4,531,563 ------------- THRIFTS & MORTGAGE FINANCE 1.6% Fannie Mae 36,080 2,287,472 MGIC Investment Corp.+ 16,680 1,110,054 Countrywide Financial Corp.+ 21,980 865,792 Freddie Mac 1,970 128,523 ------------- TOTAL THRIFTS & MORTGAGE FINANCE 4,391,841 ------------- REAL ESTATE 0.3% Equity Office Properties Trust+ 27,730 755,643 ------------- TOTAL REAL ESTATE 755,643 ------------- TOTAL FINANCIALS 50,219,492 ------------- INFORMATION TECHNOLOGY 14.7% SOFTWARE 3.7% Microsoft Corp.+ 220,290 6,091,019 Computer Associates International, Inc.+ 55,050 1,447,815 BMC Software, Inc.* 71,510 1,130,573 Symantec Corp.*+ 16,680 915,398 Oracle Corp.* 24,850 280,308 Veritas Software Corp.* 14,340 255,252 Siebel Systems, Inc.* 6,590 49,689 ------------- TOTAL SOFTWARE 10,170,054 ------------- COMPUTERS & PERIPHERALS 3.0% International Business Machines Corp. 48,160 4,129,238 Hewlett-Packard Co.+ 123,490 2,315,438 Dell, Inc.*+ 31,930 1,136,708 NCR Corp.* 14,970 742,362 ------------- TOTAL COMPUTERS & PERIPHERALS 8,323,746 ------------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.8% Intel Corp. 176,480 3,540,189 Applied Materials, Inc.* 103,200 1,701,768 National Semiconductor Corp.*+ 83,740 1,297,132 Texas Instruments, Inc. 30,060 639,677 Advanced Micro Devices, Inc.*+ 17,580 228,540 Novellus Systems, Inc.* 7,960 211,656 Micron Technology, Inc.*+ 12,920 155,428 ------------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 7,774,390 ------------- COMMUNICATIONS EQUIPMENT 2.5% Cisco Systems, Inc.*+ 174,730 3,162,613 Motorola, Inc. 117,140 2,113,206 Tellabs, Inc.*+ 116,970 1,074,954 Qualcomm, Inc.+ 12,820 500,493 ------------- TOTAL COMMUNICATIONS EQUIPMENT 6,851,266 ------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 91 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- NOVA MASTER PORTFOLIO MARKET VALUE SHARES (NOTE 1) ------- ------------- IT CONSULTING & SERVICES 1.3% Fiserv, Inc.*+ 33,360 $ 1,162,930 Sabre Holdings Corp.+ 45,310 1,111,454 First Data Corp. 20,930 910,455 SunGard Data Systems, Inc.* 13,150 312,575 Affiliated Computer Services, Inc. -- Class A* 1,110 61,794 ------------- TOTAL IT CONSULTING & SERVICES 3,559,208 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.1% Tektronix, Inc.+ 40,500 1,346,625 Molex, Inc.+ 38,650 1,152,543 Jabil Circuit, Inc.*+ 28,260 649,980 ------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 3,149,148 ------------- INTERNET SOFTWARE & SERVICES 0.3% Yahoo!, Inc.*+ 23,470 795,868 ------------- TOTAL INTERNET SOFTWARE & SERVICES 795,868 ------------- TOTAL INFORMATION TECHNOLOGY 40,623,680 ------------- HEALTH CARE 11.5% PHARMACEUTICALS 6.7% Pfizer, Inc. 211,980 6,486,588 Johnson & Johnson, Inc.+ 87,750 4,942,957 Abbott Laboratories 60,320 2,555,155 Merck & Co., Inc. 74,650 2,463,450 Forest Laboratories, Inc.* 20,310 913,544 Eli Lilly & Co. 11,630 698,382 Mylan Laboratories, Inc.+ 14,840 267,120 Wyeth 5,740 214,676 Bristol-Myers Squibb Co.+ 4,490 106,278 Allergan, Inc. 150 10,883 ------------- TOTAL PHARMACEUTICALS 18,659,033 ------------- HEALTH CARE PROVIDERS & SERVICES 2.5% HCA, Inc. 37,030 1,412,695 Cardinal Health, Inc. 31,160 1,363,873 CIGNA Corp. 17,740 1,235,236 Quest Diagnostics, Inc.+ 12,170 1,073,637 McKesson Corp.+ 38,460 986,499 WellPoint Health Networks, Inc.* 7,450 782,921 UnitedHealth Group, Inc. 1,810 133,469 ------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 6,988,330 ------------- HEALTH CARE EQUIPMENT & SUPPLIES 1.3% Becton, Dickinson & Co. 20,640 1,067,088 PerkinElmer, Inc. 59,500 1,024,590 Bausch & Lomb, Inc.+ 12,540 833,283 Medtronic, Inc. 9,070 470,733 Thermo Electron Corp.* 1,910 51,608 ------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,447,302 ------------- BIOTECHNOLOGY 1.0% Applera Corp. - Applied Biosystems Group+ 57,630 1,087,478 Amgen, Inc.*+ 13,610 771,415 Genzyme Corp.*+ 13,520 735,623 Biogen Idec, Inc.*+ 2,240 137,021 ------------- TOTAL BIOTECHNOLOGY 2,731,537 ------------- TOTAL HEALTH CARE 31,826,202 ------------- INDUSTRIALS 10.4% INDUSTRIAL CONGLOMERATES 3.8% General Electric Co.+ 229,250 7,698,215 Tyco International Ltd.+ 79,100 2,425,206 3M Co. 6,810 544,596 ------------- TOTAL INDUSTRIAL CONGLOMERATES 10,668,017 ------------- MACHINERY 1.9% Illinois Tool Works, Inc.+ 17,630 1,642,587 Danaher Corp.+ 26,780 1,373,279 Parker Hannifin Corp. 20,570 1,210,750 Eaton Corp. 15,430 978,416 ------------- TOTAL MACHINERY 5,205,032 ------------- AEROSPACE & DEFENSE 1.1% United Technologies Corp. 18,530 1,730,331 Northrop Grumman Corp.+ 12,300 655,959 General Dynamics Corp. 5,940 606,474 Boeing Co.+ 1,400 72,268 ------------- TOTAL AEROSPACE & DEFENSE 3,065,032 ------------- AIR FREIGHT & COURIERS 1.0% United Parcel Service, Inc. -- Class B 30,580 2,321,634 FedEx Corp.+ 5,600 479,864 ------------- TOTAL AIR FREIGHT & COURIERS 2,801,498 ------------- COMMERCIAL SERVICES & SUPPLIES 0.9% Cendant Corp.+ 67,660 1,461,456 Cintas Corp. 26,850 1,128,774 ------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 2,590,230 ------------- ELECTRICAL EQUIPMENT 0.7% Emerson Electric Co. 25,920 1,604,189 Rockwell Automation, Inc.+ 5,410 209,367 ------------- TOTAL ELECTRICAL EQUIPMENT 1,813,556 ------------- BUILDING PRODUCTS 0.5% Masco Corp.+ 40,540 1,399,846 ------------- TOTAL BUILDING PRODUCTS 1,399,846 ------------- ROAD & RAIL 0.5% Burlington Northern Santa Fe Corp. 36,040 1,380,692 ------------- TOTAL ROAD & RAIL 1,380,692 ------------- TOTAL INDUSTRIALS 28,923,903 ------------- See Notes to Financial Statements. 92 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- NOVA MASTER PORTFOLIO MARKET VALUE SHARES (NOTE 1) ------- ------------- CONSUMER DISCRETIONARY 10.1% MEDIA 3.1% Comcast Corp. -- Class A*+ 89,150 $ 2,517,596 Viacom, Inc. -- Class B 68,300 2,292,148 Walt Disney Co.+ 93,110 2,099,630 Time Warner, Inc.*+ 103,190 1,665,487 ------------- TOTAL MEDIA 8,574,861 ------------- SPECIALTY RETAIL 2.6% The Gap, Inc.+ 70,740 1,322,838 Limited Brands, Inc.+ 58,850 1,311,767 Sherwin-Williams Co. 28,120 1,236,155 Circuit City Stores, Inc. 77,340 1,186,396 Toys `R' Us, Inc.* 65,010 1,153,277 Home Depot, Inc.+ 26,450 1,036,840 ------------- TOTAL SPECIALTY RETAIL 7,247,273 ------------- HOTELS RESTAURANTS & LEISURE 1.3% Starwood Hotels & Resorts Worldwide, Inc.+ 26,890 1,248,234 Marriott International, Inc. -- Class A+ 17,200 893,712 McDonald's Corp. 27,420 768,583 Darden Restaurants, Inc. 29,920 697,734 ------------- TOTAL HOTELS RESTAURANTS & LEISURE 3,608,263 ------------- INTERNET & CATALOG RETAIL 0.9% eBay, Inc.*+ 26,720 2,456,637 ------------- TOTAL INTERNET & CATALOG RETAIL 2,456,637 ------------- TEXTILES & APPAREL 0.6% Jones Apparel Group, Inc. 30,230 1,082,234 Nike, Inc. -- Class B+ 8,160 643,008 ------------- TOTAL TEXTILES & APPAREL 1,725,242 ------------- AUTO COMPONENTS 0.5% Dana Corp. 55,380 979,672 Johnson Controls, Inc.+ 3,950 224,400 ------------- TOTAL AUTO COMPONENTS 1,204,072 ------------- AUTOMOBILES 0.3% Ford Motor Co.+ 64,370 904,398 ------------- TOTAL AUTOMOBILES 904,398 ------------- MULTILINE RETAIL 0.3% Dillard's, Inc./AR -- Class A+ 19,750 389,865 Nordstrom, Inc. 8,220 314,333 Target Corp. 170 7,692 ------------- TOTAL MULTILINE RETAIL 711,890 ------------- HOUSEHOLD DURABLES 0.3% Stanley Works+ 15,700 667,721 ------------- TOTAL HOUSEHOLD DURABLES 667,721 ------------- LEISURE EQUIPMENT & PRODUCTS 0.2% Brunswick Corp.+ 14,140 647,046 ------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 647,046 ------------- DISTRIBUTORS 0.0% Genuine Parts Co. 2,360 90,577 ------------- TOTAL DISTRIBUTORS 90,577 ------------- TOTAL CONSUMER DISCRETIONARY 27,837,980 ------------- CONSUMER STAPLES 9.7% FOOD & DRUG RETAILING 3.1% Wal-Mart Stores, Inc. 83,440 4,439,008 Costco Wholesale Corp.+ 35,320 1,467,899 Walgreen Co. 31,240 1,119,329 Supervalu, Inc.+ 39,870 1,098,419 CVS Corp. 4,760 200,539 Albertson's, Inc.+ 8,010 191,679 ------------- TOTAL FOOD & DRUG RETAILING 8,516,873 ------------- BEVERAGES 2.0% Coca-Cola Co. 36,170 1,448,608 Pepsi Bottling Group, Inc.+ 42,600 1,156,590 Brown-Forman Corp. -- Class B 22,830 1,045,614 Adolph Coors Co. -- Class B 15,230 1,034,422 PepsiCo, Inc. 21,140 1,028,461 Anheuser-Busch Cos., Inc. 280 13,986 ------------- TOTAL BEVERAGES 5,727,681 ------------- HOUSEHOLD PRODUCTS 2.0% Procter & Gamble Co. 47,600 2,576,112 Kimberly-Clark Corp.+ 26,460 1,709,051 Clorox Co. 23,550 1,255,215 ------------- TOTAL HOUSEHOLD PRODUCTS 5,540,378 ------------- TOBACCO 1.2% Altria Group, Inc. 68,920 3,241,997 ------------- TOTAL TOBACCO 3,241,997 ------------- FOOD PRODUCTS 1.0% Sara Lee Corp.+ 62,190 1,421,664 McCormick & Co., Inc.+ 32,330 1,110,212 Kellogg Co. 8,120 346,399 ------------- TOTAL FOOD PRODUCTS 2,878,275 ------------- PERSONAL PRODUCTS 0.4% Avon Products, Inc.+ 12,620 551,242 Gillette Co. 12,660 528,428 ------------- TOTAL PERSONAL PRODUCTS 1,079,670 ------------- TOTAL CONSUMER STAPLES 26,984,874 ------------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 93 SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- NOVA MASTER PORTFOLIO MARKET VALUE SHARES (NOTE 1) ------- ------------- ENERGY 6.7% OIL & GAS 6.7% Exxon Mobil Corp. 134,550 $ 6,502,801 ChevronTexaco Corp. 66,770 3,581,543 ConocoPhillips 26,180 2,169,013 Anadarko Petroleum Corp. 22,360 1,483,810 Burlington Resources, Inc.+ 35,960 1,467,168 Marathon Oil Corp. 34,170 1,410,538 Devon Energy Corp. 16,510 1,172,375 Sunoco, Inc.+ 5,740 424,645 Valero Energy Corp. 1,670 133,951 Amerada Hess Corp. 1,300 115,700 Occidental Petroleum Corp. 700 39,151 ------------- TOTAL OIL & GAS 18,500,695 ------------- TOTAL ENERGY 18,500,695 ------------- TELECOMMUNICATION SERVICES 3.3% DIVERSIFIED TELECOMMUNICATION SERVICES 2.5% SBC Communications, Inc.+ 116,600 3,025,770 BellSouth Corp.+ 63,050 1,709,916 Verizon Communications, Inc.+ 41,190 1,622,062 Citizens Communications Co.+ 44,570 596,793 ------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 6,954,541 ------------- WIRELESS TELECOMMUNICATION SERVICES 0.8% Nextel Communications, Inc. -- Class A*+ 48,060 1,145,750 AT&T Wireless Services, Inc.* 71,700 1,059,726 ------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,205,476 ------------- TOTAL TELECOMMUNICATION SERVICES 9,160,017 ------------- MATERIALS 2.9% METALS & MINING 1.0% Phelps Dodge Corp.+ 14,300 1,316,029 Nucor Corp.+ 14,075 1,286,033 ------------- TOTAL METALS & MINING 2,602,062 ------------- CHEMICALS 0.9% Rohm & Haas Co.+ 29,600 1,271,912 Monsanto Co. 32,860 1,196,761 EI Du Pont de Nemours & Co. 580 24,824 ------------- TOTAL CHEMICALS 2,493,497 ------------- PAPER & FOREST PRODUCTS 0.8% MeadWestvaco Corp. 37,540 1,197,526 Louisiana-Pacific Corp.+ 41,460 1,075,887 ------------- TOTAL PAPER & FOREST PRODUCTS 2,273,413 ------------- CONSTRUCTION MATERIALS 0.2% Vulcan Materials Co.+ 11,990 610,890 ------------- TOTAL CONSTRUCTION MATERIALS 610,890 ------------- TOTAL MATERIALS 7,979,862 ------------- UTILITIES 2.6% ELECTRIC UTILITIES 2.1% PG&E Corp.*+ 43,830 1,332,432 FirstEnergy Corp.+ 31,740 1,303,879 Pinnacle West Capital Corp. 25,830 1,071,945 DTE Energy Co.+ 24,250 1,023,108 PPL Corp. 19,580 923,784 ------------- TOTAL ELECTRIC UTILITIES 5,655,148 ------------- GAS UTILITIES 0.4% KeySpan Corp.+ 29,630 1,161,496 ------------- TOTAL GAS UTILITIES 1,161,496 ------------- MULTI-UTILITIES 0.1% Sempra Energy+ 9,650 349,234 ------------- TOTAL MULTI-UTILITIES 349,234 ------------- TOTAL UTILITIES 7,165,878 ------------- TOTAL COMMON STOCKS (Cost $221,456,271) 249,222,583 ------------- FACE AMOUNT ---------- REPURCHASE AGREEMENTS 3.5% Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 58,046 58,046 1.71% due 10/01/04 4,849,979 4,849,979 1.70% due 10/01/04 4,849,979 4,849,979 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $9,758,004) 9,758,004 ------------- SECURITIES LENDING COLLATERAL 23.7% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 9) 65,505,491 65,505,491 ------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $65,505,491) 65,505,491 ============= TOTAL INVESTMENTS 117.2% (Cost $296,719,766) $ 324,486,078 ------------- LIABILITIES IN EXCESS OF OTHER ASSETS - (17.2)% $ (47,734,739) ============= NET ASSETS - 100.0% $ 276,751,339 See Notes to Financial Statements. 94 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- NOVA MASTER PORTFOLIO UNREALIZED LOSS CONTRACTS (NOTE 1) - -------------------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2004 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $166,506,300) 2,988 $ (382,961) ============= * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 9. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 95 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- URSA MASTER PORTFOLIO MARKET FACE VALUE AMOUNT (NOTE 1) - -------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 76.7% Fannie Mae* 1.52% due 10/06/04 $ 50,000,000 $ 49,989,445 1.50% due 10/08/04 50,000,000 49,985,417 1.62% due 10/14/04 50,000,000 49,970,750 1.55% due 10/27/04 50,000,000 49,944,028 1.48% due 10/20/04 25,000,000 24,980,472 Federal Home Loan Bank* 1.70% due 10/13/04 100,000,000 99,943,333 1.55% due 10/29/04 50,000,000 49,939,722 1.52% due 10/13/04 25,000,000 24,987,333 Freddie Mac* 1.56% due 10/26/04 50,000,000 49,945,833 ------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $449,686,333) 449,686,333 ------------- REPURCHASE AGREEMENTS 20.8% Repurchase Agreement (Note 6) 1.72% due 10/01/04+ 23,244,982 23,244,982 1.71% due 10/01/04 49,273,031 49,273,031 1.70% due 10/01/04 49,273,031 49,273,031 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $121,791,044) 121,791,044 ------------- TOTAL INVESTMENTS 97.5% (Cost $571,477,377) $571,477,377 ============= OTHER ASSETS IN EXCESS OF LIABILITIES - 2.5% $ 14,753,466 ============= NET ASSETS - 100.0% $586,230,843 - ------------------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) - ------------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2004 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $456,387,750) 8,190 $ 2,904,088 ------------ UNITS ----- EQUITY INDEX SWAP AGREEMENT October 2004 S&P 500 Index Swap, Maturing 10/28/04** (Notional Market Value $130,229,794) 116,842 $ (1,299,769) ------------ * THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S. GOVERNMENT. ** PRICE RETURN BASED ON S&P 500 INDEX +/- FINANCING AT A VARIABLE RATE. + ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30, 2004. See Notes to Financial Statements. 96 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- ARKTOS MASTER PORTFOLIO MARKET FACE VALUE AMOUNT (NOTE 1) - -------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 43.0% Federal Home Loan Bank* 1.55% due 10/01/04 $ 50,000,000 $ 50,000,000 1.70% due 10/08/04 25,000,000 24,991,736 Freddie Mac* 1.70% due 10/12/04 50,000,000 49,974,028 ------------ TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $124,965,764) 124,965,764 ------------ CONTRACTS --------- OPTIONS PURCHASED 0.0% Call Options on: December 2004 Nasdaq 100 Index Futures Contracts Expiring December 2004 with strike price of 2200 100 500 ------------ TOTAL OPTIONS PURCHASED (Cost $1,400) 500 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 54.5% Repurchase Agreement (Note 6) 1.72% due 10/01/04+ $ 15,759,718 15,759,718 1.71% due 10/01/04 71,437,434 71,437,434 1.70% due 10/01/04 71,437,434 71,437,434 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $158,634,586) 158,634,586 ------------ TOTAL INVESTMENTS 97.5% (Cost $283,601,750) $283,600,850 ============ OTHER ASSETS IN EXCESS OF LIABILITIES - 2.5% $ 7,203,673 ============ NET ASSETS - 100.0% $290,804,523 - -------------------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) - -------------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2004 Nasdaq 100 Mini Futures Contracts (Aggregate Market Value of Contracts $93,880,800) 3,315 $ (689,667) ============ UNITS ------------ EQUITY INDEX SWAP AGREEMENT October 2004 Nasdaq 100 Index Swap, Maturing 10/12/04** (Notional Market Value $197,133,433) 139,540 $ 206,929 ============ * THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S. GOVERNMENT. ** PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE. + ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT SEPTEMBER 30, 2004. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 97 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- JUNO MASTER PORTFOLIO MARKET FACE VALUE AMOUNT (NOTE 1) - -------------------------------------------------------------------------------- FEDERAL AGENCY DISCOUNT NOTES 89.2% Fannie Mae* 1.53% due 10/01/04 $ 100,000,000 $ 100,000,000 1.55% due 10/01/04 100,000,000 100,000,000 1.55% due 10/07/04 100,000,000 99,974,167 1.58% due 10/13/04 100,000,000 99,947,333 1.78% due 12/15/04 100,000,000 99,629,167 1.67% due 10/08/04 50,000,000 49,983,764 1.52% due 10/13/04 50,000,000 49,974,667 1.68% due 10/15/04 50,000,000 49,967,333 Farmer Mac* 1.45% due 10/04/04 22,000,000 21,997,342 Federal Farm Credit Bank* 1.65% due 10/04/04 100,000,000 99,986,250 1.50% due 10/01/04 50,000,000 50,000,000 1.59% due 10/13/04 50,000,000 49,973,500 1.64% due 10/20/04 50,000,000 49,956,722 Federal Home Loan Bank* 1.71% due 10/06/04 100,000,000 99,976,250 1.70% due 10/12/04 100,000,000 99,948,056 1.70% due 10/13/04 100,000,000 99,943,333 1.70% due 10/15/04 100,000,000 99,934,084 1.70% due 10/18/04 100,000,000 99,919,722 1.70% due 10/20/04 100,000,000 99,910,278 1.56% due 11/10/04 100,000,000 99,826,666 1.51% due 10/01/04 50,000,000 50,000,000 1.46% due 10/05/04 50,000,000 49,991,889 1.52% due 10/08/04 50,000,000 49,985,222 1.62% due 10/08/04 50,000,000 49,984,250 1.65% due 10/08/04 50,000,000 49,983,958 1.68% due 10/13/04 50,000,000 49,972,000 1.73% due 10/27/04 50,000,000 49,937,528 1.71% due 11/01/04 50,000,000 49,926,375 1.50% due 10/27/04 25,000,000 24,972,917 Freddie Mac* 1.53% due 10/06/04 100,000,000 99,978,750 1.54% due 10/19/04 100,000,000 99,923,000 1.59% due 10/05/04 50,000,000 49,991,167 1.50% due 10/12/04 50,000,000 49,977,083 1.63% due 10/12/04 50,000,000 49,975,097 1.59% due 11/02/04 50,000,000 49,929,333 ------------- TOTAL FEDERAL AGENCY DISCOUNT NOTES (Cost $2,445,377,203) 2,445,377,203 ------------- MARKET VALUE CONTRACTS (NOTE 1) - -------------------------------------------------------------------------------- OPTIONS PURCHASED 0.0% Call Options on: December 2004 U.S. Treasury Bond Futures Contracts Expiring December 2004 with strike price 1280 7,476 $ 116,812 December 2004 U.S. Treasury Bond Futures Contracts Expiring December 2004 with strike price 1260 1,755 27,422 December 2004 U.S. Treasury Bond Futures Contracts Expiring December 2004 with strike price of 1240 200 3,125 ------------ TOTAL OPTIONS PURCHASED (Cost $192,197) 147,359 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 83.5% Joint Repurchase Agreement (Note 6) 1.72% due 10/01/04 $ 1,697,191 1,697,191 1.71% due 10/01/04 141,809,610 141,809,610 1.70% due 10/01/04 141,809,610 141,809,610 Individual Repurchase Agreement Lehman Brothers, Inc. at 1.30% due 10/01/04 (Secured by U.S. Treasury Bonds, at a rate of 5.375% and maturing 02/15/31, as a collateral, with a market value of $624,407,315) 612,140,000 612,140,000 Bear Stearns & Co., Inc. at 1.10% due 10/01/04 (Secured by U.S. Treasury Bonds, at a rate of 5.375% and maturing 02/15/31, as a collateral, with a market value of $552,712,500) 541,875,000 541,875,000 Citigroup, Inc. at 1.00% due 10/01/04 (Secured by U.S. Treasury Bonds, at a rate of 5.375% and maturing 02/15/31, as a collateral, with a market value of $866,029,372) 849,019,608 849,019,608 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $2,288,351,019) 2,288,351,019 ------------- See Notes to Financial Statements. 98 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- JUNO MASTER PORTFOLIO MARKET VALUE (NOTE 1) - -------------------------------------------------------------------------------- TOTAL INVESTMENTS 172.7% (Cost $4,733,920,419) $ 4,733,875,581 --------------- LIABILITIES IN EXCESS OF OTHER ASSETS - (72.7)% $(1,993,532,772) --------------- NET ASSETS - 100.0% $ 2,740,342,809 - -------------------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) - -------------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2004 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $947,086,875) 8,442 $ (16,349,898) =============== FACE AMOUNT --------- U.S. TREASURY OBLIGATIONS SOLD SHORT U.S. Treasury Bond (Market Value $2,009,223,327) $1,876,135,000 $ 3,610,850 ============ * THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY THE U.S. GOVERNMENT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 99 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2004 - --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO MASTER MASTER MASTER MASTER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- -------------- ------------- -------------- ASSETS Securities at Value* (Note 1, 2, 6 and 9) $ 324,486,078 $ 571,477,377 $ 283,600,850 $4,733,875,581 Segregated Cash with Broker 8,553,600 26,208,000 9,944,950 12,616,836 Cash in Custodian Bank 329 733 391 -- Receivable for Futures Contracts Settlement (Note 1) -- 286,650 -- 3,700,732 Receivable for Shares Purchased 9,682,391 -- -- 14,183,062 Investment Income Receivable (Note 1) 296,458 5,777 7,520 75,760 Receivable from "Feeder" Fund -- -- -- 38 ------------- -------------- ------------- -------------- TOTAL ASSETS 343,018,856 597,978,537 293,553,711 4,764,452,009 ============= ============== ============= ============== LIABILITIES Short Sale at Market Value -- -- -- 2,009,223,327 Payable for Equity Index Swap Settlement (Note 1) -- 1,422,775 197,701 -- Payable for Futures Contracts Settlement (Note 1) 88,421 -- 33,151 -- Payable upon Return of Securities Loaned (Note 9) 65,505,491 -- -- -- Payable for Securities Purchased (Note 1) 501,717 -- -- -- Liability for Shares Redeemed -- 9,879,200 2,305,321 -- Investment Advisory Fee Payable (Note 4) 166,558 434,142 207,482 1,952,726 Custody Fees Payable 5,330 11,577 5,533 53,837 Interest Payable -- -- -- 12,879,310 ------------- -------------- ------------- -------------- TOTAL LIABILITIES 66,267,517 11,747,694 2,749,188 2,024,109,200 ------------- -------------- ------------- -------------- NET ASSETS $ 276,751,339 $ 586,230,843 $ 290,804,523 $2,740,342,809 ============= ============== ============= ============== ANALYSIS OF NET ASSETS Paid-In Capital $ 495,084,604 $1,149,124,966 $ 444,367,763 $2,913,719,218 Undistributed Net Investment Income (Loss) 1,118,552 702,147 345,918 (35,544,358) Accumulated Net Realized Loss on Investments, Options, Equity Index Swaps, and Futures Contracts (246,835,168) (565,200,589) (153,425,520) (125,048,165) Net Unrealized Appreciation (Depreciation) on Investments, Options, Equity Index Swaps, and Futures Contracts 27,383,351 1,604,319 (483,638) (12,783,886) ------------- -------------- ------------- -------------- NET ASSETS $ 276,751,339 $ 586,230,843 $ 290,804,523 $2,740,342,809 ============= ============== ============= ============== SHARES OUTSTANDING 6,614,439 9,819,166 4,775,783 79,300,517 NET ASSET VALUES $ 41.84 $ 59.70 $ 60.89 $ 34.56
* THE COST OF SECURITIES AT VALUE IS $296,719,766, $571,477,377, $283,601,750, AND $4,733,920,419, RESPECTIVELY. See Notes to Financial Statements. 100 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2004 - --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO MASTER MASTER MASTER MASTER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- -------------- ------------- -------------- INVESTMENT INCOME Interest (Note 1) $ 162,247 $ 3,000,506 $ 1,525,544 $ 25,144,346 Interest from Securities Lending, net (Note 9) 13,913 -- -- -- Interest Related to Securities Sold Short -- -- -- (48,692,549) Dividends (Note 1) 2,081,480 -- -- -- Other Income -- 2,346 1,569 -- ------------- -------------- ------------- -------------- Total Income 2,257,640 3,002,852 1,527,113 (23,548,203) ------------- -------------- ------------- -------------- EXPENSES Advisory Fees (Note 4) 1,106,068 2,242,975 1,151,599 11,692,390 Custodian Fees 33,872 57,730 29,596 303,765 ------------- -------------- ------------- -------------- Total Expenses 1,139,940 2,300,705 1,181,195 11,996,155 ------------- -------------- ------------- -------------- Net Investment Income (Loss) 1,117,700 702,147 345,918 (35,544,358) ============= ============== ============= ============== REALIZED AND UNREALIZED LOSS ON INVESTMENTS (NOTE 1) Net Realized Loss on: Investment Securities (85,425) (428,945) (9,075) (777,108) Equity Index Swaps -- (4,421,446) (9,443,782) -- Futures Contracts (5,542,759) (14,216,624) (5,374,742) (31,855,499) Securities Sold Short -- -- -- (29,881,492) ------------- -------------- ------------- -------------- Total Net Realized Loss (5,628,184) (19,067,015) (14,827,599) (62,514,099) ------------- -------------- ------------- -------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (7,137,126) 272,887 4,850 (18,350) Equity Index Swaps -- (1,017,996) 4,880,790 -- Futures Contracts (1,816,987) 7,869,344 (253,936) (8,593,924) Securities Sold Short -- -- -- (7,045,365) ------------- -------------- ------------- -------------- Net Change in Unrealized Appreciation (Depreciation) (8,954,113) 7,124,235 4,631,704 (15,657,639) ------------- -------------- ------------- -------------- Net Loss on Investments (14,582,297) (11,942,780) (10,195,895) (78,171,738) ------------- -------------- ------------- -------------- NET DECREASE IN NET ASSETS FROM OPERATIONS $ (13,464,597) $ (11,240,633) $ (9,849,977) $ (113,716,096) ============= ============== ============= ==============
See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 101 STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER PORTFOLIO PORTFOLIO ---------------------------- ---------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------ ------------- --------------- --------------- FROM OPERATIONS Net Investment Income (Loss) $ 1,117,700 $ 2,001,263 $ 702,147 $ 457,359 Net Realized Gain (Loss) on Investments (5,628,184) 68,768,506 (19,067,015) (179,451,413) Net Change in Unrealized Appreciation (Depreciation) on Investments (8,954,113) 26,372,811 7,124,235 (1,544,687) ------------ ------------- --------------- --------------- Net Increase (Decrease) in Net Assets from Operations (13,464,597) 97,142,580 (11,240,633) (180,538,741) ------------ ------------- --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income -- (2,001,263) -- (358,769) ============ ============= =============== =============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED 537,228,135 843,312,217 627,586,720 1,810,929,200 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT -- 2,000,411 -- 358,768 COST OF SHARES REDEEMED (513,260,008) (844,999,096) (474,396,381) (1,715,171,812) ============ ============= =============== =============== NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 23,968,127 313,532 153,190,339 96,116,156 ------------ ------------- --------------- --------------- Net Increase (Decrease) in Net Assets 10,503,530 95,454,849 141,949,706 (84,781,354) NET ASSETS--BEGINNING OF PERIOD 266,247,809 170,792,960 444,281,137 529,062,491 ------------ ------------- --------------- --------------- NET ASSETS--END OF PERIOD $276,751,339 $ 266,247,809 $ 586,230,843 $ 444,281,137 ============ ============= =============== =============== TRANSACTIONS IN SHARES Shares Purchased 12,717,736 22,882,252 10,317,190 26,591,281 Shares Purchased Through Reinvestment -- 46,745 -- 5,066 ------------ ------------- --------------- --------------- Total Purchased 12,717,736 22,928,997 10,317,190 26,596,347 Shares Redeemed (12,381,122) (22,879,528) (7,971,890) (25,653,073) ------------ ------------- --------------- --------------- Net Shares Purchased 336,614 49,469 2,345,300 943,274 ------------ ------------- --------------- ---------------
+ UNAUDITED
ARKTOS MASTER JUNO MASTER PORTFOLIO PORTFOLIO ---------------------------- ---------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 ------------ ------------- --------------- --------------- FROM OPERATIONS Net Investment Income (Loss) $ 345,918 $ 157,526 $ (35,544,358) $ (25,151,819) Net Realized Gain (Loss) on Investments (14,827,599) (73,450,902) (62,514,099) (47,089,829) Net Change in Unrealized Appreciation (Depreciation) on Investments 4,631,704 157,395 (15,657,639) 1,433,752 ------------ ------------- --------------- --------------- Net Increase (Decrease) in Net Assets from Operations (9,849,977) (73,135,981) (113,716,096) (70,807,896) ------------ ------------- --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income -- -- -- -- ============ ============= =============== =============== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED 371,638,401 673,721,154 1,963,147,403 2,015,262,602 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT -- -- -- -- COST OF SHARES REDEEMED (333,340,060) (487,375,862) (554,930,444) (688,581,094) ============ ============= =============== =============== NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 38,298,341 186,345,292 1,408,216,959 1,326,681,508 ------------ ------------- --------------- --------------- Net Increase (Decrease) in Net Assets 28,448,364 113,209,311 1,294,500,863 1,255,873,612 NET ASSETS--BEGINNING OF PERIOD 262,356,159 149,146,848 1,445,841,946 189,968,334 ------------ ------------- --------------- --------------- NET ASSETS--END OF PERIOD $290,804,523 $ 262,356,159 $ 2,740,342,809 $1,445,841,946 ============ ============= =============== =============== TRANSACTIONS IN SHARES Shares Purchased 5,973,333 10,063,195 52,797,834 54,919,947 Shares Purchased Through Reinvestment -- -- -- -- ------------ ------------- --------------- --------------- Total Purchased 5,973,333 10,063,195 52,797,834 54,919,947 Shares Redeemed (5,530,756) (7,410,835) (14,920,062) (18,583,233) ------------ ------------- --------------- --------------- Net Shares Purchased 442,577 2,652,360 37,877,772 36,336,714 ------------ ------------- --------------- ---------------
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 102 & 103 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED TOTAL OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS --------- ---------- -------------- --------------- ------------- ------------- ------------- NOVA MASTER PORTFOLIO SEPTEMBER 30, 2004 @ $ 42.41 $ .17 $ (.74) $ (.57) $ -- $ -- $ -- March 31, 2004 27.42 .32 14.99 15.31 (.32) -- (.32) March 31, 2003 45.36 .31 (17.94) (17.63) (.31) -- (.31) March 31, 2002 * 50.00 .34 (4.62) (4.28) (.36) -- (.36) URSA MASTER PORTFOLIO SEPTEMBER 30, 2004 @ 59.44 .07 .19 .26 -- -- -- March 31, 2004 81.01 .06 (21.59) (21.53) (.04) -- (.04) March 31, 2003 64.57 .46 16.44 16.90 (.46) -- (.46) March 31, 2002 65.19 1.22 (.35) .87 (1.49) -- (1.49) March 31, 2001 * 49.71 2.80 15.50 18.30 (2.82) -- (2.82) ARKTOS MASTER PORTFOLIO SEPTEMBER 30, 2004 @ 60.55 .07 .27 .34 -- -- -- March 31, 2004 88.73 (1.93) (26.25) (28.18) -- -- -- March 31, 2003 85.18 6.71 16.02 22.73 (19.18) -- (19.18) March 31, 2002 96.47 1.37 (8.93) (7.56) (3.73) -- (3.73) March 31, 2001 * 53.67 3.70 42.92 46.62 (3.82) -- (3.82) JUNO MASTER PORTFOLIO SEPTEMBER 30, 2004 @ 34.90 (.45) .11 (.34) -- -- -- March 31, 2004 37.35 (.61) (1.84) (2.45) -- -- -- March 31, 2003 46.25 (.41) (8.49) (8.90) -- -- -- March 31, 2002 45.39 .69 1.14 1.83 (.97) -- (.97) March 31, 2001 * 49.91 2.72 (4.45) (1.73) (2.79) -- (2.79)
RATIOS TO AVERAGE NET ASSETS: ------------------------------------ NET INCREASE NET ASSET NET NET ASSETS, (DECREASE) IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF NET ASSET END OF INVESTMENT GROSS NET INCOME TURNOVER PERIOD (000'S VALUE PERIOD RETURN EXPENSES EXPENSES (LOSS) RATE*** OMITTED) ------------- --------- ---------- -------- -------- ---------- --------- ------------- NOVA MASTER PORTFOLIO SEPTEMBER 30, 2004 @ $ (.57) $ 41.84 (1.34)% 0.77%** 0.77%** 0.76%** 263% $ 276,751 March 31, 2004 14.99 42.41 55.84% 0.78% 0.78% 0.81% 540% 266,248 March 31, 2003 (17.94) 27.42 (38.94)% 0.79% 0.79% 0.91% 603% 170,793 March 31, 2002 * (4.64) 45.36 (8.54)% 0.86%** 0.86%** 0.69%** 401% 291,992 URSA MASTER PORTFOLIO SEPTEMBER 30, 2004 @ .26 59.70 0.44% 0.92%** 0.92%** 0.28%** -- 586,231 March 31, 2004 (21.57) 59.44 (26.58)% 0.93% 0.93% 0.09% -- 444,281 March 31, 2003 16.44 81.01 26.21% 0.94% 0.94% 0.52% -- 529,062 March 31, 2002 (.62) 64.57 1.37% 0.94% 0.94% 1.90% -- 228,485 March 31, 2001 * 15.48 65.19 38.06% 0.95%** 0.95%** 5.11%** -- 225,040 ARKTOS MASTER PORTFOLIO SEPTEMBER 30, 2004 @ .34 60.89 0.56% 0.92%** 0.92%** 0.27%** -- 290,805 March 31, 2004 (28.18) 60.55 (31.76)% 0.93% 0.93% 0.10% -- 262,356 March 31, 2003 3.55 88.73 20.95% 0.94% 0.94% 0.51% -- 149,147 March 31, 2002 (11.29) 85.18 (8.03)% 0.94% 0.94% 1.63% -- 115,929 March 31, 2001 * 42.80 96.47 91.61% 0.96%** 0.95%** 6.58%** 1,788% 78,919 JUNO MASTER PORTFOLIO SEPTEMBER 30, 2004 @ (.34) 34.56 (0.97)% 0.92%** 0.92%** (2.73)%** 45% 2,740,343 March 31, 2004 (2.45) 34.90 (6.56)% 0.93% 0.93% (3.39)% 187% 1,445,842 March 31, 2003 (8.90) 37.35 (19.24)% 0.94% 0.94% (2.72)% -- 189,968 March 31, 2002 .86 46.25 4.12% 0.93% 0.93% 1.61% -- 33,105 March 31, 2001 * (4.52) 45.39 (3.67)% 0.94%** 0.94%** 5.04%** -- 12,417
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 2000 --URSA MASTER PORTFOLIO, ARKTOS MASTER PORTFOLIO, AND JUNO MASTER PORTFOLIO; AUGUST 1, 2001-- NOVA MASTER PORTFOLIO. ** ANNUALIZED *** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE URSA MASTER PORTFOLIO AND THE ARKTOS MASTER PORTFOLIO TYPICALLY HOLDS MOST OF ITS INVESTMENTS IN OPTIONS AND FUTURES CONTRACTS WHICH ARE DEEMED SHORT-TERM SECURITIES. + CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR. @ UNAUDITED See Notes to Financial Statements. 104 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Rydex Series Funds (the "Trust") is 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 is authorized to issue an unlimited number of no par value shares. The Trust offers six separate classes of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class Shares, H-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, with the exception of A-Class Shares. C-Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if Shares are redeemed within 12 months of purchase. A-Class Shares are sold at net asset value, plus the applicable front-end sales charge. The sales charge varies depending on the amount of your purchase, but will not exceed 4.75%. A-Class Share purchases of $1 million or more have a 1% Contingent Deferred Sales Charge ("CDSC") if Shares are redeemed within 18 months of purchase. The current sales charge rates are as follows: SALES CHARGE SALES CHARGE AS % OF AS % OF NET AMOUNT OF INVESTMENT OFFERING PRICE AMOUNT INVESTED - -------------------- -------------- --------------- Less than $100,000 4.75% 4.99% $100,000 but less than $250,000 3.75% 3.90% $250,000 but less than $500,000 2.75% 2.83% $500,000 but less than $1,000,000 1.60% 1.63% Greater than $1,000,000 0.00% 0.00% At September 30, 2004, the Trust consisted of forty-three separate series: twenty-two Benchmark Funds, one Money Market Fund, eighteen Sector Funds and two Strategic Funds. This report covers the twenty-two 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 Stock Exchange ("NYSE") or American Stock Exchange) are valued at the last quoted sales price as of close of business on the "NYSE", 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 are 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, usually as of 4:00 p.m., Eastern Time, on the valuation date. The value of domestic equity index swap agreements entered into by the funds is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the last quoted value of the index that the swap pertains to at the close of the NYSE, usually 4:00 p.m., Eastern Time. The swap's market value is then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. The value of foreign equity index swap agreements entered into by the funds is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the average price at which orders are being filled (the "average fill price") at the close of the NYSE, usually 4:00 p.m., Eastern Time. The swap's market value is then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. Short-term securities, if any, are valued at amortized cost, which approximates market value. Securities and assets, including index options, 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 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 RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 105 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 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 a written 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 Trust 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 a 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 Trust 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 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, A-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 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. 106 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 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 Statements 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, discount notes, 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. MASTER-FEEDER ARRANGEMENT Currently, the Nova Fund, the Ursa Fund, the Juno Fund, and the Arktos 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 in conjunction 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, the Ursa Fund, the Arktos Fund, and the Juno Fund, respectively, at September 30, 2004, 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, the Small-Cap Value Fund, the Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund, the Large-Cap Growth 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 Inverse Small-Cap Fund, the Inverse Mid-Cap Fund, the Ursa Master Portfolio, the Arktos Master Portfolio, and the Juno Master Portfolio. For the period ending September 30, 2004, the Advisor voluntarily reimbursed $25,896 of miscellaneous expenses in the Institutional Class of the U.S. Government Money Market Fund. These fees are permanently reimbursed and are not subject to recapture by the Advisor. Certain officers and trustees of the Trust are also officers of Rydex Global Advisors. Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides transfer agent and administrative 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 Inverse Mid-Cap Fund, the Mekros Fund, the Inverse Small-Cap Fund, the Juno Fund, the Large-Cap Europe Fund, the Large-Cap Japan Fund, the Small- THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 107 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- Cap Value Fund, the Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund, and the Large-Cap Growth Fund. For the period ended September 30, 2004, the Sevicer voluntarily waived transfer agent service fees in the amount of $50,000 in the Institutional Class of the U.S. Government Money Market Fund. These fees are permanently waived and not subject to recapture by the Servicer. 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 Funds. For the period ended September 30, 2004, the Servicer voluntarily waived accounting fees in the amount of $12,702 in the Institutional Class of the U.S. Government Money Market Fund. These fees are permanently waived and not subject to recapture by the Servicer . Certain officers and trustees of the Trust are also officers 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 A-Class Shares and 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. 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. For the period ended September 30, 2004, the Distributor voluntarily waived $283,204 of 12b-1 expenses in the Advisor Class and $23 of 12b-1 expenses in the A-Class of the U.S. Government Money Market Fund. These fees are permanently waived and are not subject to recapture by the Distributor. 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 the shareholder's financial advisor for providing on-going services to the shareholder. The annual 0.75% distribution fee reimburses the Distributor for paying the shareholder's financial advisor an on-going sales commission. The Distributor advances the first year's service and distribution fees. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record. For the period ended September 30, 2004, the Distributor waived $569,947 of C-Class Plan expenses in the C-Class of the U.S. Government Money Market Fund. These fees are permanently waived and not subject to recapture by the Distributor. Certain officers and trustees of the Trust are also officers of Rydex Distributors, Inc. 5. FEDERAL INCOME TAX INFORMATION The Funds intend to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute all net investment income and capital gains to 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 derivatives, 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. 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. 108 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS At September 30, 2004, 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..................... $ 211,933,119 $ 64,818,220 $ -- $ 64,818,220 Ursa Fund..................... 744,809,241 -- (158,578,398) (158,578,398) OTC Fund...................... 785,042,171 394,513,226 (4,820,672) 389,692,554 Arktos Fund................... 379,095,937 -- (88,291,414) (88,291,414) Medius Fund................... 36,949,578 4,068,690 (180,644) 3,888,046 Inverse Mid-Cap Fund.......... 4,251,654 -- (41,990) (41,990) Mekros Fund................... 129,075,090 7,876,550 (3,119,798) 4,756,752 Inverse Small-Cap Fund........ 32,948,517 -- (537,727) (537,727) U.S. Government Bond Fund..... 145,959,675 8,035,714 -- 8,035,714 Juno Fund..................... 2,943,621,092 -- (203,278,283) (203,278,283) Large-Cap Europe Fund......... 30,666,029 635,606 -- 635,606 Large-Cap Japan Fund.......... 48,267,459 -- (1,488,854) (1,488,854) Small-Cap Value Fund.......... 126,463,007 872,562 (1,234,041) (361,479) Mid-Cap Value Fund............ 56,369,139 -- (856,504) (856,504) Large-Cap Value Fund.......... 131,092,472 868,865 (1,138,465) (269,600) Small-Cap Growth Fund......... 99,470,960 1,121 (1,311,818) (1,310,697) Mid-Cap Growth Fund........... 64,918,346 852,007 (749,870) 102,137 Large-Cap Growth Fund......... 7,121,110 -- (1,465,086) (1,465,086) U.S.Government Money Market Fund....................... 1,636,234,448 -- -- -- Nova Master Portfolio......... 296,996,613 30,158,137 (3,051,633) 27,106,504 Ursa Master Portfolio......... 571,477,377 1,604,319 -- 1,604,319 Arktos Master Portfolio....... 283,601,750 -- (483,638) (483,638) Juno Master Portfolio......... 4,792,953,037 -- (71,816,504) (71,816,504)
6. REPURCHASE AGREEMENTS The Funds transfer uninvested cash balances into a single joint account, along with the uninvested cash balance of the Core Equity Fund (included in the Trust, but contained in a separate report). The daily aggregate balance is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury. The collateral is in the possession of the Trusts' custodian and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreement at maturity. The repurchase agreements that were executed by the joint account and outstanding as of September 30, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE - ------------ ------------------ ------------ ------------ -------------- Morgan Stanley, Inc. 1.71% due 10/01/04 $345,000,000 $345,000,000 $ 345,016,388 Smith Barney 1.70% due 10/01/04 345,000,000 345,000,000 345,016,292 Lehman Brothers, Inc. 1.72% due 10/01/04 4,128,991 4,128,991 4,129,189 ================== ============ ============ ============== $694,128,991 $694,161,869 ============ ==============
As of September 30, 2004, 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 5.375% $325,215,000 $352,056,771 U. S. Treasury Notes 1.500% - 2.000% 350,350,369 357,494,373 ================ ============ ============ $709,551,144 ============
THE RYDEX SERIES FUNDS SEMIANNUAL REPORT | 109 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- The Funds transfer uninvested cash balances into a single joint account. The daily aggregate balance is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury. The collateral is in the possession of the Trust's custodian and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreement at maturity. The repurchase agreements that were executed by the joint account and outstanding as of September 30, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE - ------------ ------------------ ------------ ------------ -------------- Lehman Brothers, Inc. 1.72% due 10/01/04 $45,448,421 $45,448,421 $45,450,593 ================== ============ ============ ============== $45,448,421 $45,450,593 ============ ==============
As of September 30, 2004, 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 6.125% - 6.375% $ 37,140,000 $ 44,199,065 U. S. Treasury Notes 3.00% 1,845,000 2,160,443 ================ ============ ============ $ 46,359,508 ============
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. 7. SECURITIES TRANSACTIONS During the period ended September 30, 2004, cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
INVERSE INVERSE U.S. LARGE-CAP LARGE-CAP OTC MEDIUS MID-CAP MEKROS SMALL-CAP GOVERNMENT EUROPE JAPAN FUND FUND FUND FUND FUND BOND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------- Purchases $629,810,704 $215,661,834 $ -- $395,295,903 $ -- $328,057,612 $ -- $ -- Sales $677,133,146 $241,308,893 $ -- $428,391,542 $ -- $259,666,965 $ -- $ --
U.S. SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP MID-CAP LARGE-CAP GOVERNMENT VALUE VALUE VALUE GROWTH GROWTH GROWTH MONEY FUND FUND FUND FUND FUND FUND MARKET FUND ------------ ------------ ------------ ------------ ------------ ------------ ------------ Purchases $265,092,038 $199,934,213 $287,680,253 $244,571,101 $119,640,742 $206,845,837 $ -- Sales $171,208,928 $168,220,055 $185,589,946 $157,985,170 $ 64,321,045 $201,884,311 $ --
NOVA URSA ARKTOS JUNO MASTER MASTER MASTER MASTER PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ------------ -------------- Purchases $701,603,670 $ -- $ -- $1,767,600,013 Sales $696,349,597 $ -- $ -- $ 828,096,470 110 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 8. SHARE TRANSACTIONS The Trust is authorized to distribute an unlimited number of no par value shares.
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT ------------------------------ --------------------------------------- Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, 2004 2004 2004 2004 ------------- ------------- ------------- ------------ NOVA FUND Investor Class 31,161,616 67,357,207 -- 1,744 Advisor Class 7,923,414 15,207,769 -- 481 A-Class 462,562 43*** -- -- C-Class 3,711,359 9,610,613 -- 300 URSA FUND Investor Class 105,875,902 231,991,260 -- 1,231,642 Advisor Class 16,434,243 25,481,658 -- 148,589 A-Class 956,982 113*** -- -- C-Class 12,431,176 28,760,680 -- 117,706 OTC FUND Investor Class 74,741,273 187,487,977 -- -- Advisor Class 12,144,297 16,736,615 -- -- A-Class 187,214 106*** -- -- C-Class 6,989,854 18,113,943 -- -- ARKTOS FUND Investor Class 21,810,616 43,953,006 -- -- Advisor Class 2,886,459 1,082,356* -- -- A-Class 226,389 39*** -- -- C-Class 4,160,524 5,688,199 -- -- MEDIUS FUND A-Class 14,750 136*** -- -- C-Class 2,548,001 5,910,213 -- -- H-Class 17,484,572 37,923,012 -- -- INVERSE MID-CAP FUND A-Class 8,117 20*** -- -- C-Class 239,805 10,119** -- -- H-Class 1,593,612 477,713** -- -- MEKROS FUND A-Class 105,876 147*** -- -- C-Class 5,232,868 19,364,591 -- -- H-Class 62,513,517 121,252,681 -- --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED) ------------------------------ --------------------------------------- Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, 2004 2004 2004 2004 ------------- ------------- ------------- ------------ NOVA FUND Investor Class (31,585,005) (68,032,795) (423,389) (673,844) Advisor Class (7,469,749) (15,015,450) 453,665 192,800 A-Class (98,693) -- 363,869 43*** C-Class (3,437,792) (9,041,407) 273,567 569,506 URSA FUND Investor Class (93,527,666) (230,807,881) 12,348,236 2,415,021 Advisor Class (14,613,131) (23,673,595) 1,821,112 1,956,652 A-Class (257,987) -- 698,995 113*** C-Class (11,813,366) (25,119,522) 617,810 3,758,864 OTC Fund Investor Class (77,402,013) (192,409,806) (2,660,740) (4,921,829) Advisor Class (15,123,220) (17,050,053) (2,978,923) (313,438) A-Class (92,375) -- 94,839 106*** C-Class (7,136,406) (17,876,604) (146,552) 237,339 ARKTOS FUND Investor Class (20,698,407) (39,652,718) 1,112,209 4,300,288 Advisor Class (2,563,592) (380,192)* 322,867 702,164* A-Class (82,076) -- 144,313 39*** C-Class (4,677,952) (4,376,063) (517,428) 1,312,136 MEDIUS FUND A-Class (5,586) -- 9,164 136*** C-Class (2,652,073) (5,743,848) (104,072) 166,365 H-Class (18,596,265) (36,425,611) (1,111,693) 1,497,401 INVERSE MID-CAP FUND A-Class (4,894) -- 3,223 20*** C-Class (240,077) (7,314)** (272) 2,805** H-Class (1,532,827) (423,065)** 60,785 54,648** MEKROS FUND A-Class (65,495) -- 40,381 147*** C-Class (6,233,853) (18,520,133) (1,000,985) 844,458 H-Class (64,252,715) (117,084,903) (1,739,198) 4,167,778
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003. ** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004. *** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 111 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT ---------------------------- --------------------------------------- PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004 2004 2004 2004 ------------- ------------ ------------- ------------ INVERSE SMALL-CAP FUND A-Class 41,487 20*** -- -- C-Class 1,536,940 351,994** -- -- H-Class 8,803,830 1,004,310** -- -- U.S. GOVERNMENT BOND FUND Investor Class 34,539,202 87,071,724 82,196 151,723 Advisor Class 17,537,475 15,427,166* 65,657 25,684* A-Class 99,362 90*** 364 -- C-Class 5,858,713 6,731,059 11,155 10,600 JUNO FUND Investor Class 104,872,571 131,573,796 -- -- Advisor Class 10,259,440 5,230,222* -- -- A-Class 6,854,432 256,554*** -- -- C-Class 32,311,213 30,540,629 -- -- LARGE-CAP EUROPE FUND A-Class 8,824 67*** -- -- C-Class 2,188,669 2,958,449 -- 7,972 H-Class 8,631,667 27,246,596 -- 213,700 LARGE-CAP JAPAN FUND A-Class 6,913 1,579*** -- -- C-Class 489,260 605,176 -- 638 H-Class 11,163,446 23,930,244 -- 9,823 SMALL-CAP VALUE FUND A-Class+ 694 -- -- -- C-Class 631,378 219,914** -- -- H-Class 13,531,256 1,980,061** -- -- MID-CAP VALUE FUND A-Class+ 41 -- -- -- C-Class 1,237,203 201,326** -- -- H-Class 8,664,234 2,240,099** -- -- LARGE-CAP VALUE FUND A-Class+ 41 -- -- -- C-Class 1,009,478 274,300** -- -- H-Class 13,538,732 1,686,564** -- --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED) ------------------------------ ------------------------------- PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004 2004 2004 2004 ------------- ------------ ------------- ------------ INVERSE SMALL-CAP FUND A-Class (36,521) -- 4,966 20*** C-Class (1,189,923) (341,910)** 347,017 10,084** H-Class (8,564,623) (900,755)** 239,207 103,555** U.S. GOVERNMENT BOND FUND Investor Class (33,949,793) (89,630,083) 671,605 (2,406,636) Advisor Class (11,281,273) (11,225,262)* 6,321,859 4,227,588* A-Class (66,127) -- 33,599 90*** C-Class (5,644,764) (6,592,487) 225,104 149,172 JUNO FUND Investor Class (68,741,331) (92,203,564) 36,131,240 39,370,232 Advisor Class (5,896,912) (2,576,313)* 4,362,528 2,653,909* A-Class (943,224) -- 5,911,208 256,554*** C-Class (10,680,543) (7,996,442) 21,630,670 22,544,187 LARGE-CAP EUROPE FUND A-Class (1,258) -- 7,566 67*** C-Class (2,199,148) (3,030,695) (10,479) (64,274) H-Class (8,959,057) (25,538,506) (327,390) 1,921,790 LARGE-CAP JAPAN FUND A-Class (1,770) -- 5,143 1,579*** C-Class (423,631) (444,211) 65,629 161,603 H-Class (15,103,499) (19,224,952) (3,940,053) 4,715,115 SMALL-CAP VALUE FUND A-Class+ -- -- 694 -- C-Class (644,480) (133,674)** (13,102) 86,240** H-Class (9,877,973) (1,203,331)** 3,653,283 776,730** MID-CAP VALUE FUND A-Class+ -- -- 41 -- C-Class (1,181,042) (173,062)** 56,161 28,264** H-Class (7,423,563) (1,521,276)** 1,240,671 718,823** LARGE-CAP VALUE FUND A-Class+ -- -- 41 -- C-Class (1,014,548) (169,190)** (5,070) 105,110** H-Class (9,333,077) (1,361,036)** 4,205,655 325,528**
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003. ** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004. *** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004. + SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. 112 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT ------------------------------ --------------------------------------- Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, 2004 2004 2004 2004 ------------- -------------- ------------- ------------ SMALL-CAP GROWTH FUND A-Class*** 41 -- -- -- C-Class 945,437 175,753* -- -- H-Class 11,115,580 191,728* -- -- MID-CAP GROWTH FUND A-Class*** 42 -- -- -- C-Class 516,451 180,817* -- -- H-Class 4,955,619 137,463* -- -- LARGE-CAP GROWTH FUND A-Class*** 43 -- -- -- C-Class 1,161,029 37,893* -- -- H-Class 8,815,044 85,377* -- -- U.S. GOVERNMENT MONEY MARKET FUND Investor Class 9,638,090,375 20,632,372,433 1,745,051 2,043,352 Advisor Class 1,818,601,048 4,386,273,780 38,308 13,574 A-Class 7,843,813 1,000** 3,098 -- C-Class 1,336,870,247 3,269,540,461 4,153 8,818 Institutional Class 1,000 -- -- 28,440
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED) -------------------------------- --------------------------------------- Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, 2004 2004 2004 2004 -------------- --------------- ------------- ------------ SMALL-CAP GROWTH FUND A-Class*** -- -- 41 -- C-Class (882,844) (76,864)* 62,593 98,889* H-Class (7,705,861) (91,324)* 3,409,719 100,404* MID-CAP GROWTH FUND A-Class*** -- -- 42 -- C-Class (502,736) (134,208)* 13,715 46,609* H-Class (2,662,150) (112,652)* 2,293,469 24,811* LARGE-CAP GROWTH FUND A-Class*** -- -- 43 -- C-Class (1,131,599) (37,889)* 29,430 4* H-Class (8,646,634) (52,595)* 168,410 32,782* U.S. GOVERNMENT MONEY MARKET FUND Investor Class (9,547,221,202) (20,796,030,722) 92,614,224 (161,614,937) Advisor Class (1,820,253,258) (4,324,201,196) (1,613,902) 62,086,158 A-Class (3,721,348) -- 4,125,563 1,000** C-Class (1,299,397,941) (3,340,221,449) 37,476,459 (70,672,170) Institutional Class -- (10,036,610) 1,000 (10,008,170)
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004. ** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004. *** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 113 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) - -------------------------------------------------------------------------------- 9. 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, 2004, the pooled cash collateral investments consisted of repurchase agreements (41.98%), commercial paper (27.65%), fixed income notes (24.41%), corporate bonds (5.95%) and mutual funds (0.01%). 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. 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, 2004 the following funds participated in securities lending and received cash collateral: VALUE OF CASH SECURITIES FUND COLLATERAL LOANED - ---- ------------ ------------ OTC Fund $325,347,018 $314,683,791 Medius Fund 4,176,485 4,053,681 Mekros Fund 10,494,337 9,985,965 Small-Cap Value Fund 8,100,047 7,831,510 Mid-Cap Value Fund 4,875,792 4,711,067 Large-Cap Value Fund 15,604,006 15,106,679 Small-Cap Growth Fund 5,820,355 5,611,435 Mid-Cap Growth Fund 8,186,705 7,927,622 Large-Cap Growth Fund 189,731 183,871 Nova Master Portfolio 65,505,491 63,510,596 114 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT UNAUDITED PROXY VOTING INFORMATION - -------------------------------------------------------------------------------- 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. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 115 UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS - -------------------------------------------------------------------------------- Each Trust is served by a separate Board of Trustees composed of six members. The membership of each Board is the same. There is no stated term of service, and Trustees continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling (800) 820-0888. All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850. TRUSTEE AND OFFICER
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - ------------------------- --------------------------- -------------- Carl G. Verboncoeur* Rydex Series Funds - 2004 100 Trustee, President (1952) Rydex Variable Trust - 2004 Rydex Dynamic Funds - 2004 Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and Rydex Distributors, Inc., (1997 to 2000) - -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - ------------------------- --------------------------- -------------- Corey A. Colehour Rydex Series Funds - 1993 100 Trustee (1945) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield Management Company =========================== J. Kenneth Dalton Rydex Series Funds - 1995 100 Trustee (1941) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and Investor, The Dalton Group =========================== John O. Demaret Rydex Series Funds - 1997 101 Trustee (1940) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 Rydex Capital Partners Sphinx Fund - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired =========================== Patrick T. McCarville Rydex Series Funds - 1997 100 Trustee (1942) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc. ===========================
116 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (CONCLUDED) - --------------------------------------------------------------------------------
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - ------------------------- --------------------------- -------------- Roger Somers Rydex Series Funds - 1993 100 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine - -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS YEAR OF BIRTH DURING PAST FIVE YEARS - ------------------ ---------------------------------------------------------------------- NICK BONOS* Vice President and Treasurer of Rydex Series Funds, Rydex Variable Vice President and Treasurer (1963) Trust, Rydex Dynamic Funds, Rydex ETF Trust, and Rydex Capital Partners SPhinX Fund, 2003 to present; Senior Vice President of Rydex Fund Services, Inc., 2003 to present;Vice President of Accounting of Rydex Fund Services, Inc., 2000 to 2003;Vice President of Mutual Fund Services, State Street Corp., 1997 to 1999. MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Vice President and Secretary (1970) Dynamic Funds, 2004 to present;Vice President of Rydex Series Funds, 1997 to present;Vice President of Rydex Variable Trust, 1998 to present; Vice President of Rydex Dynamic Funds, 1999 to present;Vice President of Rydex ETF Trust, 2002 to present; President and Trustee of Rydex Capital Partners SPhinX Fund, 2003 to present; President of Rydex Global Advisors, 2004 to present; Chief Operating Officer of Rydex Global Advisors and Rydex Distributors, Inc., 2003 to 2004. JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable Trust, and Chief Compliance Officer and Rydex Dynamic Funds, 2004 to present; Assistant Secretary of Rydex Assistant Secretary (1967) Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds, 2000 to present; Assistant Secretary of Rydex ETF Trust, 2002 to present. Secretary of Rydex Capital Partners SPhinX Fund, 2003 to present.Vice President of Compliance of Rydex Fund Services, Inc., 2000 to present; Vice President Fund Administration, Chase Global Funds Services Co., a division of Chase Manhattan Bank NA, 1994 to 1999.
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST, WITHIN THE MEANING OF SECTION 2(A)(19) OF THE 1940 ACT, INASMUCH AS THIS PERSON IS AFFILIATED WITH THE ADVISOR. 117 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT [LOGO] RYDEXInvestments Essential for modern markets(TM) 9601 Blackwell Road Suite 500 Rockville, MD 20850 800.820.0888 www.rydexinvestments.com THE RYDEX SERIES FUNDS - -------------------------------------------------------------------------------- SECTOR FUNDS SEMI-ANNUAL REPORT SEPTEMBER 30, 2004 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 REAL ESTATE FUND RETAILING FUND TECHNOLOGY FUND TELECOMMUNICATIONS FUND TRANSPORTATION FUND UTILITIES FUND [RydexInvestments LOGO] RSECF-SEMI-0904 Essential for modern markets(TM) 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. TABLE OF CONTENTS - -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS ................................................ 2 ABOUT SHAREHOLDERS FUND'S EXPENSES ........................................ 3 FUND PROFILES ............................................................. 9 SCHEDULES OF INVESTMENTS .................................................. 19 STATEMENTS OF ASSETS AND LIABILITIES ...................................... 46 STATEMENTS OF OPERATIONS .................................................. 50 STATEMENTS OF CHANGES IN NET ASSETS ....................................... 54 FINANCIAL HIGHLIGHTS ...................................................... 60 NOTES TO FINANCIAL STATEMENTS ............................................. 69 UNAUDITED PROXY VOTING INFORMATION ........................................ 77 UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ................... 78 THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1 - -------------------------------------------------------------------------------- DEAR SHAREHOLDER: The U.S. economy reached a more mature phase of the business cycle during the six-month period ending September 30, 2004. This phenomenon was marked by lower realized and forecasted gross domestic product (GDP) growth rates, reduced forecasts for future corporate earnings growth and a cumulative reported one million jobs created during the period. The Federal Reserve (Fed), observing these changes, raised the Fed Funds rate three times between June 30 and September 21. Equity investors reacted to slowing growth by shifting their style preference from high-growth to value stocks. As a result of investors' shift toward value stocks, the information technology sector suffered significant price declines in all industries but most acutely in semiconductors. Correspondingly, Rydex Electronics Fund Investor Class and Rydex Technology Fund Investor Class returned -27.40% and -13.33%, respectively, during the semi-annual period. Equity markets moved in a tight trading range over the period. Most broad-based equity indices ended the period with slightly negative returns. The S&P 500(R) Index was down slightly, returning -0.18% over the period. Large-cap stocks tended to outperform small-cap stocks and the S&P 500 outperformed the S&P MidCap 400(TM) and Russell 2000(R) indices, which returned -1.15% and -2.40%, respectively. Political and economic uncertainty led investors to return to the relative safety of large-cap stocks. The S&P 500 also outperformed the Nasdaq 100 Index(R), which posted a return of -1.79%. There was good news, though. Between the end of March and September, the unemployment rate experienced a slight decline, moving from 5.6% to 5.4%. The improvement was driven in part by a 2.8% rebound in manufacturing payrolls. Oil prices increased almost 40% in the last six months. Despite the threat this development poses to continued stable economic growth, market reactions were muted. Implied volatility in financial markets, as measured by the VIX--which measures the volatility of the U.S. equity market--reached the lowest levels seen since 1995. While the longer-term broad market reaction to oil prices was reserved, individual sectors responded dramatically. Year-over-year energy sector earnings grew 60% during the quarterly period ending June 2004. Investors responded by marking up energy stocks significantly. The sector, which returned 19.4% for the period, greatly outperformed the S&P 500. Rydex Energy Services Fund Investor Class and Rydex Energy Fund Investor Class benefited significantly as well, returning 18.63% and 18.34%, respectively. Industrials also performed well, up 8.4%. Other sectors that performed well included basic materials, which was up 6.2%, telecommunication services (5.4%) and utilities (5.1%). Information technology and consumer staples experienced some difficult times, finishing down 7.3% and down 5.1%, respectively. Health care (-2.8%), financials (-2%) and consumer discretionary (-1.5%) also underperformed the S&P 500. Though five sectors had positive returns and five sectors had negative returns, investors should not assume that sector investing was flat. Not only was the spread between the best and worst sector fairly large (26.7%), but the sectors that outperformed only represent 27% of the S&P 500's market capitalization. As always, we 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 President 2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES - -------------------------------------------------------------------------------- All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. As a shareholder of the fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees, administrative services, and shareholder reports, among others. Operating expenses, which are deducted from a fund's gross income, reduce the investment return of the fund. A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2004 and ending September 30, 2004. The following tables illustrate your fund's costs in two ways: TABLE 1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period." Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating your retirement account, a $15 account-closing fee will be taken from the proceeds of your redemption. TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you compare your fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid during the period. In addition, certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating your retirement account, a $15 account-closing fee will be taken from the proceeds of your redemption. The example is useful in making comparisons because the Securities Exchange Commission requires all mutual funds to calculate expenses based on the 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. The calculations above assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs which may be incurred by some of the fund's classes. These costs may include, but are not limited to, sales charges (loads), redemption fees, and exchange fees. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3 ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED) - -------------------------------------------------------------------------------- You can find more information about the fund's expenses, including annual expense ratios for the past five years, in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate fund prospectus. TABLE 1. BASED ON ACTUAL FUND RETURN
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - -------------------------------------------------------------------------------------------------------- BANKING FUND Investor Class 1.36% $1,000.00 $1,028.30 $ 6.92 Advisor Class 1.86% 1,000.00 1,026.40 9.45 A-Class 1.63% 1,000.00 1,005.00 8.19 C-Class 2.35% 1,000.00 1,022.30 11.91 BASIC MATERIALS FUND Investor Class 1.35% 1,000.00 1,088.80 7.07 Advisor Class 1.85% 1,000.00 1,086.10 9.67 A-Class 1.61% 1,000.00 1,046.50 8.26 C-Class 2.35% 1,000.00 1,083.50 12.27 BIOTECHNOLOGY FUND Investor Class 1.35% 1,000.00 929.50 6.53 Advisor Class 1.85% 1,000.00 927.50 8.94 A-Class 1.58% 1,000.00 1,030.20 8.04 C-Class 2.35% 1,000.00 925.20 11.34 CONSUMER PRODUCTS FUND Investor Class 1.35% 1,000.00 952.60 6.61 Advisor Class 1.85% 1,000.00 950.30 9.04 A-Class 1.60% 1,000.00 970.10 7.90 C-Class 2.35% 1,000.00 948.10 11.48 ELECTRONICS FUND Investor Class 1.35% 1,000.00 726.00 5.84 Advisor Class 1.85% 1,000.00 724.30 8.00 A-Class 1.73% 1,000.00 1,022.80 8.77 C-Class 2.35% 1,000.00 723.10 10.15 ENERGY FUND Investor Class 1.35% 1,000.00 1,183.40 7.39 Advisor Class 1.84% 1,000.00 1,180.70 10.06 A-Class 1.57% 1,000.00 1,078.20 8.18 C-Class 2.35% 1,000.00 1,177.60 12.83 ENERGY SERVICES FUND Investor Class 1.35% 1,000.00 1,186.30 7.40 Advisor Class 1.85% 1,000.00 1,183.70 10.13 A-Class 1.62% 1,000.00 1,082.00 8.46 C-Class 2.35% 1,000.00 1,180.90 12.85 FINANCIAL SERVICES FUND Investor Class 1.35% 1,000.00 1,000.90 6.77 Advisor Class 1.83% 1,000.00 997.20 9.16 A-Class 1.60% 1,000.00 1,011.20 8.07 C-Class 2.35% 1,000.00 994.50 11.75
4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED) - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - -------------------------------------------------------------------------------------------------------- HEALTH CARE FUND Investor Class 1.35% $1,000.00 $ 964.00 $ 6.65 Advisor Class 1.85% 1,000.00 962.00 9.10 A-Class 1.70% 1,000.00 1,000.90 8.53 C-Class 2.35% 1,000.00 960.40 11.55 INTERNET FUND Investor Class 1.37% 1,000.00 924.30 6.61 Advisor Class 1.67% 1,000.00 922.20 8.05 A-Class 1.70% 1,000.00 1,048.90 8.73 C-Class 2.38% 1,000.00 920.00 11.46 LEISURE FUND Investor Class 1.34% 1,000.00 961.00 6.59 Advisor Class 1.85% 1,000.00 958.50 9.08 A-Class 1.74% 1,000.00 1,042.30 8.91 C-Class 2.35% 1,000.00 956.20 11.52 PRECIOUS METALS FUND Investor Class 1.25% 1,000.00 929.60 6.05 Advisor Class 1.74% 1,000.00 927.80 8.41 A-Class 1.35% 1,000.00 1,099.80 7.11 C-Class 2.25% 1,000.00 924.90 10.86 REAL ESTATE FUND A-Class 1.61% 1,000.00 1,001.90 8.08 C-Class 2.35% 1,000.00 999.20 11.78 H-Class 1.61% 1,000.00 1,002.30 8.08 RETAILING FUND Investor Class 1.35% 1,000.00 927.60 6.52 Advisor Class 1.85% 1,000.00 925.20 8.93 A-Class 1.75% 1,000.00 1,018.20 8.85 C-Class 2.35% 1,000.00 922.60 11.33 TECHNOLOGY FUND Investor Class 1.35% 1,000.00 866.70 6.32 Advisor Class 1.85% 1,000.00 865.20 8.65 A-Class 1.65% 1,000.00 1,032.20 8.41 C-Class 2.35% 1,000.00 864.00 10.98 TELECOMMUNICATIONS FUND Investor Class 1.34% 1,000.00 930.20 6.48 Advisor Class 1.88% 1,000.00 928.30 9.09 A-Class 1.18% 1,000.00 1,032.50 6.01 C-Class 2.36% 1,000.00 925.60 11.39 TRANSPORTATION FUND Investor Class 1.36% 1,000.00 1,083.90 7.10 Advisor Class 1.86% 1,000.00 1,079.40 9.70 A-Class 1.61% 1,000.00 1,038.40 8.23 C-Class 2.35% 1,000.00 1,078.10 12.24 UTILITIES FUND Investor Class 1.36% 1,000.00 1,037.40 6.95 Advisor Class 1.86% 1,000.00 1,034.80 9.49 A-Class 1.62% 1,000.00 1,006.80 8.15 C-Class 2.35% 1,000.00 1,031.90 11.97
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5 ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED) - -------------------------------------------------------------------------------- TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - -------------------------------------------------------------------------------------------------------- BANKING FUND Investor Class 1.36% $1,000.00 $1,043.01 $ 6.99 Advisor Class 1.86% 1,000.00 1,040.44 9.56 A-Class 1.63% 1,000.00 1,041.62 8.38 C-Class 2.35% 1,000.00 1,037.92 12.08 BASIC MATERIALS FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.61% 1,000.00 1,041.73 8.27 C-Class 2.35% 1,000.00 1,037.92 12.08 BIOTECHNOLOGY FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.58% 1,000.00 1,041.88 8.12 C-Class 2.35% 1,000.00 1,037.92 12.08 CONSUMER PRODUCTS FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.60% 1,000.00 1,041.78 8.22 C-Class 2.35% 1,000.00 1,037.92 12.08 ELECTRONICS FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.73% 1,000.00 1,041.11 8.89 C-Class 2.35% 1,000.00 1,037.92 12.08 ENERGY FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.84% 1,000.00 1,040.54 9.46 A-Class 1.57% 1,000.00 1,041.93 8.07 C-Class 2.35% 1,000.00 1,037.92 12.08 ENERGY SERVICES FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.62% 1,000.00 1,041.67 8.33 C-Class 2.35% 1,000.00 1,037.92 12.08 FINANCIAL SERVICES FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.83% 1,000.00 1,040.60 9.40 A-Class 1.60% 1,000.00 1,041.78 8.22 C-Class 2.35% 1,000.00 1,037.92 12.08 HEALTH CARE FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.70% 1,000.00 1,041.26 8.74 C-Class 2.35% 1,000.00 1,037.92 12.08
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED) - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO+ MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - -------------------------------------------------------------------------------------------------------- INTERNET FUND Investor Class 1.37% $1,000.00 $1,042.96 $ 7.04 Advisor Class 1.67% 1,000.00 1,041.42 8.58 A-Class 1.70% 1,000.00 1,041.26 8.74 C-Class 2.38% 1,000.00 1,037.77 12.23 LEISURE FUND Investor Class 1.34% 1,000.00 1,043.11 6.89 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.74% 1,000.00 1,041.06 8.94 C-Class 2.35% 1,000.00 1,037.92 12.08 PRECIOUS METALS FUND Investor Class 1.25% 1,000.00 1,043.58 6.42 Advisor Class 1.74% 1,000.00 1,041.06 8.94 A-Class 1.35% 1,000.00 1,043.06 6.94 C-Class 2.25% 1,000.00 1,038.44 11.56 REAL ESTATE FUND A-Class 1.61% 1,000.00 1,041.73 8.27 C-Class 2.35% 1,000.00 1,037.92 12.08 H-Class 1.61% 1,000.00 1,041.73 8.27 RETAILING FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.75% 1,000.00 1,041.01 8.99 C-Class 2.35% 1,000.00 1,037.92 12.08 TECHNOLOGY FUND Investor Class 1.35% 1,000.00 1,043.06 6.94 Advisor Class 1.85% 1,000.00 1,040.49 9.51 A-Class 1.65% 1,000.00 1,041.52 8.48 C-Class 2.35% 1,000.00 1,037.92 12.08 TELECOMMUNICATIONS FUND Investor Class 1.34% 1,000.00 1,043.11 6.89 Advisor Class 1.88% 1,000.00 1,040.34 9.66 A-Class 1.18% 1,000.00 1,043.94 6.06 C-Class 2.36% 1,000.00 1,037.87 12.13 TRANSPORTATION FUND Investor Class 1.36% 1,000.00 1,043.01 6.99 Advisor Class 1.86% 1,000.00 1,040.44 9.56 A-Class 1.61% 1,000.00 1,041.73 8.27 C-Class 2.35% 1,000.00 1,037.92 12.08 UTILITIES FUND Investor Class 1.36% 1,000.00 1,043.01 6.99 Advisor Class 1.86% 1,000.00 1,040.44 9.56 A-Class 1.62% 1,000.00 1,041.67 8.33 C-Class 2.35% 1,000.00 1,037.92 12.08
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365. + ANNUALIZED THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7 - -------------------------------------------------------------------------------- This page intentionally left blank. FUND PROFILES - -------------------------------------------------------------------------------- BANKING FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and saving-and-loan institutions. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] BANKING FUND BANKS 65% SAVINGS & LOANS 17% DIVERSIFIED FINANCIALS 12% INSURANCE 6% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 1, 1998 A-Class September 1, 2004 C-Class March 30, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Wells Fargo & Co. 5.1% U.S. Bancorp 4.2% Bank of America Corp. 3.8% Freddie Mac 3.7% Washington Mutual, Inc. 3.4% Countrywide Financial Corp. 3.2% SunTrust Banks, Inc. 3.0% PNC Financial Services Group, Inc. 2.7% KeyCorp 2.6% M&T Bank Corp. 2.5% - -------------------------------------------------------------------------------- Top Ten Total 34.2% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. BASIC MATERIALS FUND OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the mining, manufacture or sale of basic materials, such as lumber, steel, iron, aluminum, concrete, chemicals and other basic building and manufacturing materials. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] BASIC MATERIALS FUND CHEMICALS 41% MINING 15% FOREST PRODUCTS & PAPER 15% PACKAGING & CONTAINERS 9% IRON/STEEL 6% OTHER 14% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 14, 1998 A-Class September 1, 2004 C-Class May 3, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- EI Du Pont de Nemours & Co. 4.6% Dow Chemical Co. 3.6% Phelps Dodge Corp. 2.9% PPG Industries, Inc. 2.8% Georgia-Pacific Corp. 2.7% International Paper Co. 2.6% Ecolab, Inc. 2.2% United States Steel Corp. 2.1% Alcoa, Inc. 2.1% Sigma-Aldrich Corp. 2.1% - -------------------------------------------------------------------------------- Top Ten Total 27.7% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- BIOTECHNOLOGY FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic or biological engineering and in the design, manufacture or sale of related biotechnology products or services. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] BIOTECHNOLOGY FUND BIOTECHNOLOGY 63% PHARMACEUTICALS 33% HEALTHCARE-PRODUCTS 4% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 1, 1998 A-Class September 1, 2004 C-Class March 30, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Amgen, Inc. 10.0% Genentech, Inc. 8.8% Gilead Sciences, Inc. 5.7% Biogen Idec, Inc. 5.5% Genzyme Corp. 5.1% Celgene Corp. 3.4% Millennium Pharmaceuticals, Inc. 3.1% Chiron Corp. 3.1% Cephalon, Inc. 2.6% ImClone Systems, Inc. 2.5% - -------------------------------------------------------------------------------- Top Ten Total 49.8% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. CONSUMER PRODUCTS FUND OBJECTIVE: Seeks capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] CONSUMER PRODUCTS FUND FOOD 43% COSMETICS/PERSONAL CARE 20% BEVERAGES 20% AGRICULTURE 10% OTHER 7% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class July 6, 1998 Advisor Class August 17, 1998 A-Class September 1, 2004 C-Class July 24, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Procter & Gamble Co. 6.4% Altria Group, Inc. 6.0% PepsiCo, Inc. 5.5% Coca-Cola Co. 5.0% Gillette Co. 4.2% Anheuser-Busch Cos., Inc. 3.4% Kellogg Co. 3.3% Sara Lee Corp. 3.3% General Mills, Inc. 3.1% Sysco Corp. 3.0% - -------------------------------------------------------------------------------- Top Ten Total 43.2% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. 10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- ELECTRONICS FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the electronics sector, including semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] ELECTRONICS FUND SEMICONDUCTORS 96% ELECTRONICS 2% OTHER 2% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 2, 1998 A-Class September 1, 2004 C-Class March 26, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Intel Corp. 10.2% Applied Materials, Inc. 5.2% Texas Instruments, Inc. 5.0% Maxim Integrated Products, Inc. 3.3% Micron Technology, Inc. 3.0% KLA-Tencor Corp. 3.0% Analog Devices, Inc. 2.9% Xilinx, Inc. 2.8% Lam Research Corp. 2.6% National Semiconductor Corp. 2.5% - -------------------------------------------------------------------------------- Top Ten Total 40.5% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. ENERGY FUND OBJECTIVE: Seeks capital appreciation by investing in companies involved in the energy field, including the exploration, production and development of oil, gas, coal and alternative sources of energy. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] ENERGY FUND OIL & GAS 81% OIL & GAS SERVICES 13% PIPELINES 3% OTHER 3% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 21, 1998 Advisor Class May 5, 1998 A-Class September 1, 2004 C-Class April 19, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Exxon Mobil Corp. 7.9% BP PLC - SP ADR 6.1% ChevronTexaco Corp. 4.8% Total SA - SP ADR 4.6% Royal Dutch Petroleum Co. 3.9% ConocoPhillips 3.3% Shell Transport & Trading Co. PLC - SP ADR 2.8% Repsol YPF SA - SP ADR 2.5% Schlumberger Ltd. 2.1% Anadarko Petroleum Corp. 2.1% - -------------------------------------------------------------------------------- Top Ten Total 40.1% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- ENERGY SERVICES FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the energy services field, including those that provide services and equipment in the areas of oil, coal and gas exploration and production. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] ENERGY SERVICES FUND OIL & GAS SERVICES 64% OIL & GAS 34% TRANSPORTATION 2% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 2, 1998 A-Class September 1, 2004 C-Class March 30, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Schlumberger Ltd. 8.4% Transocean, Inc. 5.3% Baker Hughes, Inc. 5.0% Nabors Industries Ltd. 4.9% BJ Services Co. 4.5% Halliburton Co. 4.4% Weatherford International Ltd. 3.8% Pride International, Inc. 3.6% Tidewater, Inc. 3.2% Cal Dive International, Inc. 3.0% - -------------------------------------------------------------------------------- Top Ten Total 46.1% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. FINANCIAL SERVICES FUND OBJECTIVE: Seeks capital appreciation by investing in companies involved in the financial services sector, including commercial banks, savings and loans institutions, insurance companies, brokerage companies and real-estate and leasing companies. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] FINANCIAL SERVICES FUND INSURANCE 28% BANKS 23% DIVERSIFIED FINANCIALS 20% REAL ESTATE 15% SAVINGS & LOANS 12% OTHER 2% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 2, 1998 Advisor Class April 6, 1998 A-Class September 1, 2004 C-Class April 19, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Citigroup, Inc. 3.3% J.P. Morgan Chase & Co. 2.5% Wachovia Corp. 2.4% MetLife, Inc. 2.1% Washington Mutual, Inc. 2.1% Countrywide Financial Corp. 2.1% Capital One Financial Corp. 1.9% PNC Financial Services Group, Inc. 1.8% Chubb Corp. 1.8% KeyCorp 1.8% - -------------------------------------------------------------------------------- Top Ten Total 21.8% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. 12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- HEALTH CARE FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the health care industry. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] HEALTH CARE FUND PHARMACEUTICALS 41% HEALTHCARE-PRODUCTS 28% HEALTHCARE-SERVICES 14% BIOTECHNOLOGY 11% OTHER 6% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 17, 1998 Advisor Class May 11, 1998 A-Class September 1, 2004 C-Class March 30, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Pfizer, Inc. 8.0% Johnson & Johnson, Inc. 5.7% Abbott Laboratories 3.7% Eli Lilly & Co. 3.2% Merck & Co., Inc. 3.1% Bristol-Myers Squibb Co. 3.0% Genentech, Inc. 2.9% UnitedHealth Group, Inc. 2.8% Wyeth 2.7% Amgen, Inc. 2.5% - -------------------------------------------------------------------------------- Top Ten Total 37.6% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. INTERNET FUND OBJECTIVE: Seeks capital appreciation by investing in companies that provide products or services designed for or related to the Internet ("Internet Companies"). INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] INTERNET FUND INTERNET 51% TELECOMMUNICATIONS 24% COMPUTERS 8% SOFTWARE 7% MEDIA 7% OTHER 3% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 6, 2000 Advisor Class April 6, 2000 A-Class September 1, 2004 C-Class April l9, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Cisco Systems, Inc. 10.0% eBay, Inc. 8.1% Qualcomm, Inc. 6.8% Time Warner, Inc. 6.6% Yahoo!, Inc. 6.2% Research In Motion Ltd. 4.9% Amazon.com, Inc. 4.3% Intuit, Inc. 4.0% Symantec Corp. 3.9% Qwest Communications International, Inc. 3.2% - -------------------------------------------------------------------------------- Top Ten Total 58.0% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- LEISURE FUND OBJECTIVE: Seeks capital appreciation by investing in the leisure and entertainment businesses, including hotels and resorts, casinos, radio and television broadcasting and advertising, motion picture production, toys and sporting goods manufacturers, musical recordings and instruments, alcohol and tobacco, and publishing. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] LEISURE FUND RETAIL 33% MEDIA 20% LODGING 13% LEISURE TIME 10% ENTERTAINMENT 8% TOYS/GAMES/HOBBIES 7% SOFTWARE 6% OTHER 3% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class June 3, 1998 A-Class September 1, 2004 C-Class May 3, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Time Warner, Inc. 6.4% Walt Disney Co. 5.3% McDonald's Corp. 4.8% Viacom, Inc. - Class B 3.9% Starbucks Corp. 3.7% International Game Technology, Inc. 3.4% Marriott International, Inc. - Class A 3.2% Mattel, Inc. 2.9% Electronic Arts, Inc. 2.8% Carnival Corp. 2.8% - -------------------------------------------------------------------------------- Top Ten Total 39.2% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. PRECIOUS METALS FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the precious metals industry. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] PRECIOUS METALS FUND GOLD MINING 67% METAL-DIVERSIFIED 13% SILVER MINING 13% OTHER 7% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class December 1, 1993 Advisor Class August 1, 2003 A-Class September 1, 2004 C-Class April 27, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Newmont Mining Corp. 13.3% Freeport-McMoRan Copper & Gold, Inc. - Class B 10.1% Barrick Gold Corp. 5.7% AngloGold Ashanti Ltd. - SP ADR 5.6% Placer Dome, Inc. 5.2% Pan American Silver Corp. 4.4% Coeur d'Alene Mines Corp. 4.3% Gold Fields Ltd. - SP ADR 4.3% Goldcorp, Inc. 4.3% Harmony Gold Mining Co. Ltd. - SP ADR 4.2% - -------------------------------------------------------------------------------- Top Ten Total 61.4% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. 14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- REAL ESTATE FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the real estate industry including real estate investment trusts ("REITs"). INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] REAL ESTATE FUND REITS-APARTMENTS 17% REITS-OFFICE PROPERTY 16% REITS-SHOPPING CENTERS 15% REITS-DIVERSIFIED 15% REITS-REGIONAL MALLS 13% REITS-WAREHOUSE/INDUSTRY 6% REITS-HEALTH CARE 5% OTHER 13% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- A-Class September 1, 2004 C-Class February 20, 2004 H-Class February 20, 2004 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Equity Office Properties Trust 2.3% Simon Property Group, Inc. 2.3% Equity Residential 2.2% Rouse Co. 2.1% Vornado Realty Trust 2.1% General Growth Properties, Inc. 1.9% KIMCO Realty Co. 1.8% Archstone-Smith Trust 1.8% Plum Creek Timber (REIT) Co., Inc. 1.8% Boston Properties, Inc. 1.8% - -------------------------------------------------------------------------------- Top Ten Total 20.1% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. RETAILING FUND OBJECTIVE: Seeks capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, restaurant franchises, mail-order operations and other companies involved in selling products to consumers. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] RETAILING FUND APPAREL/SHOE 19% DISCOUNT 17% INTERNET 10% BUILDING PRODUCTS 10% OFFICE SUPPLIES 6% DRUG STORE 5% COMMERCIAL SERVICES 5% AUTO PARTS 4% REGIONAL DEPARTMENT STORE 3% OTHER 21% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 21, 1998 A-Class September 1, 2004 C-Class May 9, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 7.6% Home Depot, Inc. 5.7% eBay, Inc. 4.7% Lowe's Cos., Inc. 4.2% Costco Wholesale Corp. 3.0% Target Corp. 2.7% Amazon.com, Inc. 2.7% The Gap, Inc. 2.6% InterActive Corp. 2.4% Sherwin-Williams Co. 2.3% - -------------------------------------------------------------------------------- Top Ten Total 37.9% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15 FUND PROFILES (CONTINUED) - -------------------------------------------------------------------------------- TECHNOLOGY FUND OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, and PC hardware and peripherals companies. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] TECHNOLOGY FUND SOFTWARE 25% COMPUTERS 22% SEMICONDUCTORS 19% TELECOMMUNICATIONS 17% INTERNET 6% ELECTRONICS 5% OTHER 6% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 14, 1998 Advisor Class April 29, 1998 A-Class September 1, 2004 C-Class April 18, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Microsoft Corp. 9.6% Intel Corp. 5.4% Cisco Systems, Inc. 5.0% International Business Machines Corp. 4.2% Oracle Corp. 4.0% Hewlett-Packard Co. 3.5% Dell, Inc. 2.9% Qualcomm, Inc. 2.6% Yahoo!, Inc. 2.2% Texas Instruments, Inc. 2.0% - -------------------------------------------------------------------------------- Top Ten Total 41.4% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. TELECOMMUNICATIONS FUND OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the development, manufacture or sale of communications services or communications equipment. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] TELECOMMUNICATIONS FUND TELEPHONE-INTEGRATED 28% CELLULAR TELECOMMUNICATIONS 20% WIRELESS EQUIPMENT 18% TELECOMMUNICATION EQUIPMENT 15% NETWORKING PRODUCTS 10% TELECOMMUNICATIONS EQUIPMENT FIBER OPTICS 5% OTHER 4% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 1, 1998 Advisor Class April 1, 1998 A-Class September 1, 2004 C-Class April 18, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Vodafone Group PLC - SP ADR 7.9% Cisco Systems, Inc. 6.0% Verizon Communications, Inc. 5.1% SBC Communications, Inc. 5.0% Qualcomm, Inc. 4.4% Nokia OYJ - SP ADR 4.1% Telefonaktiebolaget LM Ericsson - SP ADR 4.0% BellSouth Corp. 3.7% AT&T Wireless Services, Inc. 3.7% Motorola, Inc. 3.6% - -------------------------------------------------------------------------------- Top Ten Total 47.5% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. 16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES (CONCLUDED) - -------------------------------------------------------------------------------- TRANSPORTATION FUND OBJECTIVE: Seeks capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution or sale of transportation equipment. INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] TRANSPORTATION FUND SERVICES 32% RAIL 26% TRUCK 19% AIRLINES 14% AIR FREIGHT 6% MARINE 3% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 2, 1998 Advisor Class June 9, 1998 A-Class September 1, 2004 C-Class May 14, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- United Parcel Service, Inc. - Class B 12.2% FedEx Corp. 7.7% Burlington Northern Santa Fe Corp. 7.6% Norfolk Southern Corp. 7.1% Union Pacific Corp. 5.7% Southwest Airlines Co. 4.2% Ryder System, Inc. 4.2% CSX Corp. 3.5% CNF, Inc. 3.4% Expeditors International Washington, Inc. 3.0% - -------------------------------------------------------------------------------- Top Ten Total 58.6% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. UTILITIES FUND OBJECTIVE: Seeks capital appreciation by investing in companies that operate public utilities ("Utilities Companies"). INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] UTILITIES FUND ELECTRIC-INTEGRATED 75% GAS 16% PIPELINES 4% INDEPENDENT POWER PRODUCER 3% ELECTRIC-GENERATION 2% "Industry Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- Investor Class April 3, 2000 Advisor Class April 3, 2000 A-Class September 1, 2004 C-Class April 27, 2001 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- PG&E Corp. 3.7% Consolidated Edison, Inc. 3.4% Sempra Energy 3.2% DTE Energy Co. 3.1% KeySpan Corp. 3.0% Constellation Energy Group, Inc. 3.0% Xcel Energy, Inc. 3.0% Energy East Corp. 2.7% Equitable Resources, Inc. 2.6% Pepco Holdings, Inc. 2.6% - -------------------------------------------------------------------------------- Top Ten Total 30.3% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17 - -------------------------------------------------------------------------------- This page intentionally left blank. SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- BANKING FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.1% Wells Fargo & Co. 24,188 $ 1,442,330 U.S. Bancorp+ 41,417 1,196,951 Bank of America Corp. 24,994 1,082,990 Freddie Mac 16,190 1,056,236 Washington Mutual, Inc. 24,650 963,322 Countrywide Financial Corp.+ 22,878 901,164 SunTrust Banks, Inc. 12,191 858,368 PNC Financial Services Group, Inc. 14,277 772,386 KeyCorp 23,501 742,632 M&T Bank Corp. 7,580 725,406 Comerica, Inc. 11,701 694,454 UnionBanCal Corp. 11,279 667,830 National Commerce Financial Corp.+ 18,882 645,953 J.P. Morgan Chase & Co. 15,726 624,794 Huntington Bancshares, Inc. 24,900 620,259 MGIC Investment Corp.+ 9,291 618,316 Compass Bancshares, Inc. 13,504 591,745 Radian Group, Inc.+ 12,717 587,907 Zions Bancorporation 9,612 586,716 Hibernia Corp.--Class A 21,982 580,545 PMI Group, Inc. 13,903 564,184 Commerce Bancshares, Inc. 11,220 539,570 NewAlliance Bancshares, Inc. 36,282 520,647 Webster Financial Corp. 10,517 519,435 Astoria Financial Corp. 14,546 516,238 Wachovia Corp. 10,841 508,985 International Bancshares Corp. 13,629 500,866 Washington Federal, Inc. 19,700 495,455 Fannie Mae 7,776 492,998 Whitney Holding Corp. 11,543 484,806 Downey Financial Corp.+ 8,811 484,253 Community First Bankshares, Inc. 14,495 464,710 Bankunited Financial Corp. -- Class A* 15,846 461,911 Commercial Federal Corp. 16,655 449,352 Waypoint Financial Corp. 16,284 448,950 Anchor BanCorp Wisconsin, Inc.+ 16,704 432,634 Irwin Financial Corp. 16,686 430,832 Riggs National Corp.+ 18,998 421,756 Gold Banc Corp., Inc. 27,879 376,088 National Australia Bank Ltd. -- SP ADR 3,680 360,640 Barclays PLC -- SP ADR 9,000 348,210 Credit Suisse Group -- SP ADR* 10,850 346,549 Mitsubishi Tokyo Financial Group, Inc. -- SP ADR+ 41,188 343,508 Kookmin Bank -- SP ADR* 10,287 327,538 Westcorp 5,624 239,132 R&G Financial Corp. -- Class B 5,610 216,826 National City Corp. 5,091 196,614 Fifth Third Bancorp 3,664 180,342 BB&T Corp.+ 4,334 172,016 Golden West Financial Corp. 875 97,081 SouthTrust Corp. 1,415 58,949 ------------ TOTAL COMMON STOCKS (Cost $26,703,411) 27,961,379 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 0.2% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 63,704 63,704 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $63,704) 63,704 ------------ SECURITIES LENDING COLLATERAL 8.4% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 2,386,271 2,386,271 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $2,386,271) 2,386,271 ------------ TOTAL INVESTMENTS 106.7% (Cost $29,153,386) $ 30,411,354 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (6.7)% $ (1,903,384) ============ NET ASSETS -- 100.0% $ 28,507,970 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- BASIC MATERIALS FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.0% EI Du Pont de Nemours & Co. 57,109 $ 2,444,265 Dow Chemical Co. 42,432 1,917,078 Phelps Dodge Corp.+ 16,750 1,541,502 PPG Industries, Inc. 24,191 1,482,424 Georgia-Pacific Corp.+ 39,530 1,421,103 International Paper Co.+ 34,253 1,384,164 Ecolab, Inc. 36,331 1,142,247 United States Steel Corp.+ 30,309 1,140,225 Alcoa, Inc. 33,694 1,131,781 Sigma-Aldrich Corp. 18,980 1,100,840 Pactiv Corp.* 44,359 1,031,347 Sealed Air Corp.*+ 22,149 1,026,606 Engelhard Corp. 36,186 1,025,873 Rohm & Haas Co.+ 22,577 970,134 Massey Energy Co.+ 32,362 936,233 Owens-Illinois, Inc.* 57,733 923,728 Potlatch Corp.+ 19,684 921,408 Newmont Mining Corp.+ 19,264 877,090 OM Group, Inc.*+ 21,248 776,827 Louisiana-Pacific Corp.+ 29,856 774,763 Consol Energy, Inc.+ 21,266 741,971 Eastman Chemical Co.+ 15,243 724,805 Monsanto Co. 19,724 718,348 Lafarge North America, Inc.+ 14,670 687,876 Weyerhaeuser Co. 10,231 680,157 Praxair, Inc. 15,368 656,828 Lubrizol Corp.+ 18,680 646,328 Air Products & Chemicals, Inc. 11,550 628,089 RPM International, Inc. 35,485 626,310 Southern Peru Copper Corp. 11,773 608,193 Vulcan Materials Co.+ 11,719 597,083 International Steel Group, Inc.*+ 17,170 578,629 Glamis Gold Ltd.*+ 30,653 574,131 Agrium, Inc. 32,100 570,096 Georgia Gulf Corp. 12,121 540,475 Nucor Corp.+ 5,854 534,880 Alcan, Inc.+ 11,181 534,452 Agnico-Eagle Mines Ltd.+ 36,471 520,806 Rio Tinto PLC -- SP ADR+ 4,670 507,395 Sonoco Products Co.+ 18,675 493,767 Bemis Co. 18,570 493,591 Eagle Materials, Inc. 6,544 466,587 Valspar Corp. 9,681 451,909 Inco Ltd.*+ 11,506 449,309 Headwaters, Inc.*+ 13,958 430,744 Worthington Industries, Inc. 19,620 418,887 Airgas, Inc. 17,104 411,693 Lyondell Chemical Co.+ 17,386 390,490 Crompton Corp. 40,716 386,395 Albemarle Corp. 10,955 384,411 IMC Global, Inc.*+ 21,980 382,232 AptarGroup, Inc. 8,645 380,121 Packaging Corporation of America 15,440 377,817 Minerals Technologies, Inc. 6,111 359,693 Texas Industries, Inc.+ 6,810 350,306 Freeport-McMoRan Copper & Gold, Inc. -- Class B+ 8,540 345,870 Cabot Corp. 8,180 315,503 MeadWestvaco Corp. 9,651 307,867 Sensient Technologies Corp.+ 14,157 306,357 Millennium Chemicals, Inc.* 13,776 292,189 Quanex Corp. 5,470 280,502 W.R. Grace & Co.* 29,550 279,247 Wausau-Mosinee Paper Corp. 16,516 274,991 Peabody Energy Corp. 4,614 274,533 Longview Fibre Co. 17,780 271,145 MacDermid, Inc. 9,106 263,710 H.B. Fuller Co. 9,613 263,396 Ferro Corp. 11,938 260,368 Florida Rock Industries, Inc. 5,261 257,736 PolyOne Corp.* 33,428 251,379 A. Schulman, Inc. 11,305 249,162 Allegheny Technologies, Inc. 13,426 245,024 Arch Chemicals, Inc. 8,571 244,702 International Flavors & Fragrances, Inc. 6,294 240,431 Smurfit-Stone Container Corp.*+ 12,410 240,382 Caraustar Industries, Inc.* 13,523 226,781 Cemex SA de CV -- SP ADR 7,925 223,009 Rock-Tenn Co. -- Class A 13,885 218,550 Schweitzer-Mauduit International, Inc. 6,670 216,108 Cambrex Corp. 9,803 215,176 Deltic Timber Corp.+ 5,403 214,985 RTI International Metals, Inc.* 11,002 213,109 Glatfelter 16,876 209,094 See Notes to Financial Statements 20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- BASIC MATERIALS FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- Ryerson Tull, Inc. 12,041 $ 206,744 Chesapeake Corp. 8,184 196,580 Buckeye Technologies, Inc.* 17,173 191,479 Brush Engineered Materials, Inc.* 9,061 187,653 Steel Technologies, Inc. 7,310 187,260 Myers Industries, Inc. 15,443 169,101 Wellman, Inc. 18,856 159,899 Material Sciences Corp.* 11,083 149,510 Pope & Talbot, Inc. 8,451 148,738 Omnova Solutions, Inc.* 24,526 147,892 Ball Corp. 3,738 139,913 Quaker Chemical Corp. 5,596 135,143 Penford Corp. 6,802 118,423 Imco Recycling, Inc.*+ 10,296 117,374 A.M. Castle & Co.* 11,490 116,624 Commonwealth Industries, Inc.* 11,963 111,734 Temple-Inland, Inc. 1,490 100,054 ------------ TOTAL COMMON STOCKS (Cost $46,271,030) 52,059,869 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.2% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 654,398 654,398 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $654,398) 654,398 ------------ SECURITIES LENDING COLLATERAL 14.3% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 7,583,211 7,583,211 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $7,583,211) 7,583,211 ------------ TOTAL INVESTMENTS 113.5% (Cost $54,508,639) $ 60,297,478 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (13.5)% $ (7,177,149) ============ NET ASSETS -- 100.0% $ 53,120,329 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 21 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- BIOTECHNOLOGY FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.0% Amgen, Inc.*+ 245,618 $ 13,921,628 Genentech, Inc.*+ 234,422 12,288,401 Gilead Sciences, Inc.*+ 211,688 7,912,897 Biogen Idec, Inc.*+ 124,913 7,640,928 Genzyme Corp.*+ 131,025 7,129,070 Celgene Corp.*+ 81,540 4,748,074 Millennium Pharmaceuticals, Inc.*+ 314,496 4,311,740 Chiron Corp.*+ 96,745 4,276,129 Cephalon, Inc.*+ 74,992 3,592,117 ImClone Systems, Inc.*+ 65,779 3,476,420 Charles River Laboratories International, Inc.*+ 63,128 2,891,262 Invitrogen Corp.*+ 49,623 2,728,769 Medimmune, Inc.*+ 102,200 2,422,140 Gen-Probe, Inc.*+ 60,289 2,403,722 Pharmion Corp.*+ 44,873 2,319,755 Onyx Pharmaceuticals, Inc.*+ 50,581 2,175,489 Connetics Corp.*+ 77,140 2,084,323 Affymetrix, Inc.*+ 67,234 2,064,756 OSI Pharmaceuticals, Inc.*+ 32,949 2,025,046 Amylin Pharmaceuticals, Inc.*+ 98,117 2,013,361 Abgenix, Inc.*+ 187,412 1,847,882 Neurocrine Biosciences, Inc.* 39,008 1,839,617 Idexx Laboratories, Inc.* 36,117 1,832,577 Techne Corp.*+ 46,999 1,794,422 QLT, Inc.*+ 106,604 1,774,957 Human Genome Sciences, Inc.*+ 162,417 1,771,969 Telik, Inc.* 76,422 1,704,211 Digene Corp.* 64,837 1,683,169 Angiotech Pharmaceuticals, Inc.*+ 77,800 1,577,006 United Therapeutics Corp.*+ 44,391 1,550,578 Vicuron Pharmaceuticals, Inc.* 101,381 1,488,273 Incyte Corp.*+ 149,427 1,438,982 NPS Pharmaceuticals, Inc.*+ 64,595 1,406,879 Vertex Pharmaceuticals, Inc.*+ 131,033 1,375,847 Transkaryotic Therapies, Inc.* 73,607 1,305,052 Applera Corp. -- Celera Genomics Group* 111,609 1,304,709 Serologicals Corp.*+ 54,210 1,264,719 Alkermes, Inc.*+ 109,442 1,262,961 Tanox, Inc.* 73,427 1,238,714 Medarex, Inc.*+ 160,139 1,181,826 Myriad Genetics, Inc.* 64,585 1,104,404 Ligand Pharmaceuticals, Inc. -- Class B* 100,296 1,004,966 Regeneron Pharmaceuticals, Inc.* 109,359 949,236 Alexion Pharmaceuticals, Inc.* 52,691 948,438 deCODE genetics, Inc.* 122,500 922,425 CV Therapeutics, Inc.*+ 73,418 917,725 Cubist Pharmaceuticals, Inc.* 92,014 909,098 Dendreon Corp.* 102,364 860,881 Ariad Pharmaceuticals, Inc.* 128,537 859,913 Cell Genesys, Inc.* 90,326 810,224 Protein Design Labs, Inc.*+ 36,449 713,671 InterMune, Inc.* 51,392 605,912 Oscient Pharmaceuticals Corp.*+ 155,662 552,600 Martek Biosciences Corp.*+ 10,528 512,082 ICOS Corp.* 18,738 452,335 Cell Therapeutics, Inc.*+ 65,900 452,074 Encysive Pharmaceuticals, Inc.* 39,862 359,954 Keryx Biopharmaceuticals, Inc.* 30,300 339,057 ILEX Oncology, Inc.* 8,000 201,360 Enzon Pharmaceuticals, Inc.* 18 287 ------------- TOTAL COMMON STOCKS (Cost $90,225,176) 136,547,019 ------------- FACE AMOUNT ------------- REPURCHASE AGREEMENTS 0.2% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 317,395 317,395 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $317,395) 317,395 ------------- SECURITIES LENDING COLLATERAL 38.0% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 52,868,168 52,868,168 ------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $52,868,168) $ 52,868,168 ------------- TOTAL INVESTMENTS 136.2% (Cost $143,410,739) $ 189,732,582 ============= LIABILITIES IN EXCESS OF OTHER ASSETS -- (36.2)% $ (50,425,546) ============= NET ASSETS -- 100.0% $ 139,307,036 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. 22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- CONSUMER PRODUCTS FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.5% Procter & Gamble Co. 26,382 $ 1,427,794 Altria Group, Inc. 28,600 1,345,344 PepsiCo, Inc. 25,607 1,245,781 Coca-Cola Co. 27,910 1,117,795 Gillette Co. 22,521 940,027 Anheuser-Busch Cos., Inc. 15,311 764,784 Kellogg Co. 17,189 733,283 Sara Lee Corp. 32,002 731,566 General Mills, Inc. 15,330 688,317 Sysco Corp. 22,758 680,919 Kraft Foods, Inc. -- Class A+ 20,193 640,522 Kimberly-Clark Corp. 9,690 625,877 H.J. Heinz Co. 17,240 620,985 Colgate-Palmolive Co. 13,564 612,822 Estee Lauder Cos., Inc. -- Class A 13,196 551,593 Pepsi Bottling Group, Inc.+ 19,350 525,352 Tyson Foods, Inc. -- Class A+ 29,090 466,022 Whole Foods Market, Inc.+ 5,250 450,397 Supervalu, Inc.+ 15,740 433,637 Hormel Foods Corp.+ 15,780 422,588 Dean Foods Co.*+ 13,920 417,878 7-Eleven, Inc.* 18,802 375,664 Adolph Coors Co. -- Class B 5,310 360,655 Del Monte Foods Co.* 33,965 356,293 J.M. Smucker Co. 7,830 347,730 UST, Inc. 7,730 311,210 Pilgrim's Pride Corp.+ 11,280 305,462 Church & Dwight Co., Inc. 10,580 296,875 Corn Products International, Inc. 6,427 296,285 Loews Corp. -- Carolina Group 11,540 281,230 Ralcorp Holdings, Inc.* 6,760 244,036 WM Wrigley Jr Co.+ 3,800 240,578 Coca-Cola Enterprises, Inc. 12,670 239,463 Performance Food Group Co.* 9,910 234,867 Rayovac Corp.* 8,270 217,914 Ruddick Corp. 10,792 211,955 ConAgra Foods, Inc.+ 7,954 204,497 Hershey Foods Corp.+ 4,160 194,314 Energizer Holdings, Inc.*+ 4,160 191,776 Archer-Daniels-Midland Co. 10,260 174,215 Clorox Co. 3,052 162,672 Kroger Co.*+ 10,247 159,033 Campbell Soup Co. 5,901 155,137 Sanderson Farms, Inc. 4,540 151,863 Avon Products, Inc.+ 3,268 142,746 Alberto-Culver Co. -- Class B 3,190 138,701 Natures Sunshine Products, Inc. 7,604 115,353 Albertson's, Inc.+ 4,780 114,385 Smithfield Foods, Inc.* 4,210 105,250 NBTY, Inc.* 4,192 90,380 Safeway, Inc.*+ 4,639 89,579 Reynolds American, Inc. 1,120 76,205 Brown-Forman Corp. -- Class B 1,330 60,914 McCormick & Co., Inc. 740 25,412 Constellation Brands, Inc. -- Class A* 630 23,978 ------------ TOTAL COMMON STOCKS (Cost $20,925,258) 22,139,910 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 0.7% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 159,041 159,041 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $159,041) 159,041 ------------ SECURITIES LENDING COLLATERAL 7.8% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 1,748,026 1,748,026 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $1,748,026) 1,748,026 ------------ TOTAL INVESTMENTS 107.0% (Cost $22,832,325) $ 24,046,977 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (7.0)% $ (1,580,612) ============ NET ASSETS -- 100.0% $ 22,466,365 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- ELECTRONICS FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.2% Intel Corp. 162,919 $ 3,268,155 Applied Materials, Inc.* 99,909 1,647,499 Texas Instruments, Inc. 74,848 1,592,765 Maxim Integrated Products, Inc.+ 24,994 1,056,996 Micron Technology, Inc.*+ 80,743 971,338 KLA-Tencor Corp.*+ 23,122 959,101 Analog Devices, Inc.+ 23,757 921,297 Xilinx, Inc.+ 32,886 887,922 Lam Research Corp.*+ 37,650 823,782 National Semiconductor Corp.*+ 51,490 797,580 Novellus Systems, Inc.* 28,589 760,182 Linear Technology Corp.+ 20,967 759,844 Altera Corp.*+ 36,595 716,164 Broadcom Corp. -- Class A*+ 26,018 710,031 Advanced Micro Devices, Inc.*+ 53,514 695,682 Microchip Technology, Inc.+ 25,134 674,597 Semtech Corp.*+ 30,448 583,688 Pericom Semiconductor Corp.* 53,646 518,220 Cree, Inc.*+ 15,988 488,114 Teradyne, Inc.*+ 34,750 465,650 Intersil Corp. -- Class A+ 28,654 456,458 Skyworks Solutions, Inc.*+ 46,767 444,287 MEMC Electronic Materials, Inc.*+ 51,720 438,586 International Rectifier Corp.* 12,515 429,265 Fairchild Semiconductor International, Inc.* 28,390 402,286 Rambus, Inc.* 24,670 387,072 Micrel, Inc.* 36,870 383,817 PMC -- Sierra, Inc.*+ 41,910 369,227 Varian Semiconductor Equipment Associates, Inc.* 11,650 359,985 Cymer, Inc.*+ 12,490 357,963 ATMI, Inc.* 16,892 345,948 Integrated Circuit Systems, Inc.*+ 15,115 324,973 Axcelis Technologies, Inc.*+ 38,890 322,009 RF Micro Devices, Inc.* 50,046 317,292 Nvidia Corp.*+ 21,740 315,665 Atmel Corp.*+ 86,577 313,409 Silicon Laboratories, Inc.*+ 9,417 311,609 LSI Logic Corp.*+ 71,652 308,820 Cabot Microelectronics Corp.*+ 8,318 301,528 Taiwan Semiconductor Manufacturing Co. Ltd. -- SP ADR+ 42,173 301,115 Cypress Semiconductor Corp.*+ 33,815 298,925 Helix Technology Corp. 21,210 288,350 Integrated Device Technology, Inc.*+ 27,587 262,904 Cohu, Inc. 16,790 248,156 Applied Micro Circuits Corp.*+ 76,784 240,334 Brooks Automation, Inc.* 16,260 230,079 Power Integrations, Inc.*+ 10,277 209,959 FEI Co.* 10,590 209,258 Triquint Semiconductor, Inc.* 52,977 206,610 Microsemi Corp.* 14,248 200,897 Actel Corp.* 12,862 195,502 Amkor Technology, Inc.* 52,710 192,392 Exar Corp.*+ 13,096 185,439 Lattice Semiconductor Corp.* 37,163 182,470 Photronics, Inc.*+ 10,446 173,613 LTX Corp.* 29,688 160,612 Advanced Energy Industries, Inc.* 16,900 157,001 Kulicke & Soffa Industries, Inc.* 27,763 156,861 Conexant Systems, Inc.*+ 92,630 149,134 Ultratech, Inc.* 8,260 129,434 Dupont Photomasks, Inc.* 7,010 119,450 Kopin Corp.* 25,550 103,989 STMicroelectronics/NV 5,990 103,507 Rudolph Technologies, Inc.* 5,980 100,105 Standard Microsystems Corp.* 5,122 89,686 Credence Systems Corp.*+ 10,610 76,392 ESS Technologies, Inc.* 11,000 75,350 Infineon Technologies AG -- SP ADR* 4,263 43,568 Alliance Semiconductor Corp.* 9,087 31,441 United Microelectronics Corp. -- SP ADR*+ 8,801 29,747 Three-Five Systems, Inc.* 9,720 26,633 ------------ TOTAL COMMON STOCKS (Cost $22,495,753) 31,367,719 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.4% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 438,210 438,210 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $438,210) 438,210 ------------ SECURITIES LENDING COLLATERAL 21.9% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 7,009,431 7,009,431 ------------ See Notes to Financial Statements. 24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- ELECTRONICS FUND MARKET VALUE (NOTE 1) - ------------------------------------------------------------------------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $7,009,431) $ 7,009,431 ------------ TOTAL INVESTMENTS 121.5% (Cost $29,943,394) $ 38,815,360 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (21.5)% $ (6,866,823) ============ NET ASSETS -- 100.0% $ 31,948,537 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- ENERGY FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.0% Exxon Mobil Corp. 252,884 $ 12,221,884 BP PLC -- SP ADR 162,350 9,339,995 ChevronTexaco Corp.+ 139,408 7,477,845 Total SA -- SP ADR+ 69,300 7,080,381 Royal Dutch Petroleum Co. 116,850 6,029,460 ConocoPhillips 61,004 5,054,181 Shell Transport & Trading Co. PLC -- SP ADR 97,500 4,339,725 Repsol YPF SA -- SP ADR 174,001 3,814,102 Schlumberger Ltd. 49,000 3,298,190 Anadarko Petroleum Corp. 49,010 3,252,304 Devon Energy Corp. 41,513 2,947,838 Weatherford International Ltd.*+ 55,665 2,840,028 Occidental Petroleum Corp. 50,135 2,804,051 Kerr-McGee Corp. 48,910 2,800,097 Burlington Resources, Inc.+ 67,293 2,745,554 Apache Corp. 52,658 2,638,692 Transocean, Inc.*+ 71,250 2,549,325 Rowan Cos., Inc.*+ 90,395 2,386,428 Marathon Oil Corp. 57,049 2,354,983 Valero Energy Corp.+ 29,155 2,338,523 Sunoco, Inc.+ 31,517 2,331,628 Murphy Oil Corp. 26,164 2,270,250 Kinder Morgan, Inc. 36,100 2,267,802 Unocal Corp.+ 48,410 2,081,630 Offshore Logistics, Inc.* 57,866 1,991,748 Amerada Hess Corp. 20,963 1,865,707 Dril-Quip, Inc.* 82,293 1,835,134 Premcor, Inc.* 47,600 1,832,600 Baker Hughes, Inc.+ 41,081 1,796,061 Forest Oil Corp.*+ 59,400 1,789,128 XTO Energy, Inc.+ 53,947 1,752,199 Nabors Industries Ltd.*+ 36,875 1,746,031 EOG Resources, Inc.+ 24,270 1,598,179 Vintage Petroleum, Inc. 78,500 1,575,495 Frontier Oil Corp. 62,992 1,487,241 Cal Dive International, Inc.*+ 41,050 1,462,201 El Paso Corp.+ 154,282 1,417,852 Diamond Offshore Drilling+ 42,750 1,410,322 BJ Services Co.+ 26,815 1,405,374 Chesapeake Energy Corp.+ 85,885 1,359,560 Plains Exploration & Production Co.*+ 55,300 1,319,458 Newfield Exploration Co.* 20,815 1,274,711 Hanover Compressor Co.*+ 90,928 1,222,982 Patterson-UTI Energy, Inc.+ 61,150 1,166,130 Pioneer Natural Resources Co.+ 33,789 1,165,042 Southwestern Energy Co.*+ 25,972 1,090,564 Unit Corp.*+ 30,880 1,083,270 Overseas Shipholding Group, Inc. 21,161 1,050,432 Ashland, Inc. 18,512 1,038,153 Noble Energy, Inc. 16,725 974,064 Williams Cos., Inc. 74,650 903,265 Smith International, Inc.*+ 14,325 869,957 Precision Drilling Corp.*+ 15,015 863,362 Stone Energy Corp.* 18,800 822,688 Cimarex Energy Co.* 22,121 772,908 Tetra Technologies, Inc.* 23,421 727,222 St. Mary Land & Exploration Co. 16,900 672,789 Maverick Tube Corp.*+ 21,425 660,104 Patina Oil & Gas Corp. 21,737 642,763 Swift Energy Co.* 25,760 617,210 Noble Corp.*+ 12,900 579,855 Helmerich & Payne, Inc. 20,000 573,800 Oceaneering International, Inc.*+ 15,321 564,426 National-Oilwell, Inc.* 17,150 563,549 Spinnaker Exploration Co.*+ 15,940 558,538 Veritas DGC, Inc.*+ 24,300 553,554 Halliburton Co. 14,625 492,716 CARBO Ceramics, Inc. 6,683 482,112 Grant Prideco, Inc.*+ 22,850 468,196 Remington Oil & Gas Corp.* 16,100 422,625 Input/Output, Inc.*+ 37,050 381,986 Cabot Oil & Gas Corp.+ 7,350 330,015 SAN Juan Basin Royalty TR 10,700 326,457 Lone Star Technologies, Inc.*+ 7,547 285,277 Atwood Oceanics, Inc.* 5,900 280,486 Pogo Producing Co. 5,471 259,599 Kinder Morgan Energy Partners-LP 4,700 220,148 Teekay Shipping Corp. 3,950 170,206 Tesoro Petroleum Corp.*+ 5,700 168,321 OMI Corp. 10,500 168,210 General Maritime Corp* 4,800 167,184 Frontline, Ltd. 3,500 165,165 PetroKazakhstan, Inc.-Class A 4,589 157,265 Western Gas Resources, Inc. 5,100 145,809 W-H Energy Services, Inc.* 5,750 119,313 Key Energy Services, Inc.* 500 5,525 ------------- TOTAL COMMON STOCKS (Cost $128,225,566) 151,137,139 ------------- See Notes to Financial Statements. 26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- ENERGY FUND MARKET FACE VALUE AMOUNT (NOTE 1) - ------------------------------------------------------------------------------- REPURCHASE AGREEMENTS 0.4% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 644,115 $ 644,115 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $644,115) 644,115 ------------- SECURITIES LENDING COLLATERAL 15.2% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 23,463,476 23,463,476 ------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $23,463,476) 23,463,476 ------------- TOTAL INVESTMENTS 113.6% (Cost $152,333,157) $ 175,244,730 ============= LIABILITIES IN EXCESS OF OTHER ASSETS -- (13.6)% $ (20,984,612) ============= NET ASSETS -- 100.0% $ 154,260,118 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- ENERGY SERVICES FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.2% Schlumberger Ltd. 110,764 $ 7,455,525 Transocean, Inc.*+ 132,482 4,740,206 Baker Hughes, Inc.+ 102,469 4,479,945 Nabors Industries Ltd.*+ 92,062 4,359,136 BJ Services Co.+ 76,846 4,027,499 Halliburton Co. 117,135 3,946,278 Weatherford International Ltd.*+ 66,850 3,410,687 Pride International, Inc.*+ 163,603 3,237,703 Tidewater, Inc. 88,965 2,895,811 Cal Dive International, Inc.*+ 75,691 2,696,113 Smith International, Inc.*+ 43,186 2,622,686 Diamond Offshore Drilling+ 77,800 2,566,622 Helmerich & Payne, Inc. 87,488 2,510,031 FMC Technologies, Inc.* 70,840 2,366,056 Grant Prideco, Inc.*+ 114,289 2,341,782 National-Oilwell, Inc.* 70,697 2,323,103 Noble Corp.*+ 51,649 2,321,622 Cooper Cameron Corp.* 42,193 2,313,864 Patterson-UTI Energy, Inc. 107,440 2,048,881 Unit Corp.*+ 56,413 1,978,968 Atwood Oceanics, Inc.* 41,476 1,971,769 Rowan Cos., Inc.*+ 71,683 1,892,431 ENSCO International, Inc.+ 57,574 1,880,943 Offshore Logistics, Inc.* 50,452 1,736,558 Lone Star Technologies, Inc.*+ 45,407 1,716,385 Varco International, Inc.* 62,991 1,689,419 W-H Energy Services, Inc.* 79,215 1,643,711 Maverick Tube Corp.*+ 50,241 1,547,925 CARBO Ceramics, Inc. 19,668 1,418,849 Dril-Quip, Inc.* 63,100 1,407,130 Oceaneering International, Inc.*+ 29,709 1,094,480 Hydril* 22,805 979,475 Input/Output, Inc.*+ 81,100 836,141 Tetra Technologies, Inc.* 24,037 746,349 Precision Drilling Corp.*+ 11,750 675,625 Veritas DGC, Inc.*+ 27,000 615,060 Universal Compression Holdings, Inc.* 13,250 451,427 Hanover Compressor Co.* 28,020 376,869 SEACOR Holdings, Inc.* 4,603 215,190 Core Laboratories/NV* 3,670 90,245 ------------- TOTAL COMMON STOCKS (Cost $68,753,314) 87,628,499 ------------- FACE AMOUNT ------------- REPURCHASE AGREEMENTS 0.8% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 686,015 $ 686,015 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $686,015) 686,015 ------------- SECURITIES LENDING COLLATERAL 19.7% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 17,615,930 17,615,930 ------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $17,615,930) 17,615,930 ------------- TOTAL INVESTMENTS 118.7% (Cost $87,055,259) $ 105,930,444 ============= LIABILITIES IN EXCESS OF OTHER ASSETS -- (18.7)% $ (16,723,915) ============= NET ASSETS -- 100.0% $ 89,206,529 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. 28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- FINANCIAL SERVICES FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.2% Citigroup, Inc. 26,122 $ 1,152,503 J.P. Morgan Chase & Co. 21,637 859,638 Wachovia Corp.+ 17,877 839,325 MetLife, Inc. 18,693 722,484 Washington Mutual, Inc. 18,441 720,674 Countrywide Financial Corp.+ 18,122 713,826 Capital One Financial Corp.+ 8,912 658,597 PNC Financial Services Group, Inc. 11,830 640,003 Chubb Corp.+ 8,780 617,058 KeyCorp 19,523 616,927 XL Capital Ltd.+ 8,172 604,646 Loews Corp. 10,084 589,914 Vornado Realty Trust 9,360 586,685 Banknorth Group, Inc. 16,371 572,985 Principal Financial Group, Inc.+ 15,890 571,563 Radian Group, Inc.+ 11,890 549,675 Everest Re Group Ltd. 7,364 547,366 MGIC Investment Corp.+ 8,199 545,643 PMI Group, Inc.+ 13,329 540,891 Hudson City Bancorp, Inc. 15,071 538,638 SAFECO Corp.+ 11,777 537,620 Commerce Bancorp, Inc./NJ+ 9,702 535,550 New York Community Bancorp, Inc. 25,670 527,262 CNA Financial Corp.* 21,641 519,600 Markel Corp.* 1,684 519,346 United Dominion Realty Trust, Inc.+ 26,110 517,761 Independence Community Bank Corp. 13,240 517,022 Camden Property Trust+ 11,130 514,206 CBL & Associates Properties, Inc.+ 8,370 510,151 Student Loan Corp. 3,594 509,450 HCC Insurance Holdings, Inc.+ 16,840 507,726 Shurgard Storage Centers, Inc. -- Class A 13,017 505,060 Astoria Financial Corp. 14,190 503,603 Friedman Billings Ramsey Group, Inc. -- Class A+ 26,101 498,529 Nationwide Financial Services, Inc. 14,142 496,526 LandAmerica Financial Group, Inc. 10,889 495,450 Lexington Corporate Properties Trust 22,743 493,751 Horace Mann Educators Corp. 27,767 488,144 Entertainment Properties Trust+ 12,896 487,469 Annaly Mortgage Mgt.+ 28,302 484,813 Flagstar Bancorp, Inc. 22,600 480,928 Greater Bay Bancorp+ 16,707 480,326 Susquehanna Bancshares, Inc. 19,220 472,812 Commercial Federal Corp.+ 17,411 469,749 Bank of New York Co., Inc. 15,350 447,760 Moody's Corp. 6,000 439,500 HSBC Holdings Plc+ 5,410 431,718 American Express Co. 8,040 413,738 Gold Banc Corp., Inc. 30,278 408,450 Kookmin Bank -- SP ADR* 12,655 402,935 First Republic Bank+ 8,416 387,136 Nuveen Investments, Inc. -- Class A 13,021 385,422 AMB Property Corp. 9,290 343,916 Transatlantic Holdings, Inc. 6,109 332,024 T. Rowe Price Group, Inc.+ 6,488 330,499 Mellon Financial Corp. 11,390 315,389 Fremont General Corp. 13,240 306,506 State Street Corp. 7,090 302,814 Bank of America Corp. 6,106 264,573 Eaton Vance Corp.+ 6,510 262,939 American International Group, Inc. 3,738 254,147 Simon Property Group, Inc.+ 4,390 235,436 NewAlliance Bancshares, Inc. 15,580 223,573 MBNA Corp. 7,745 195,174 Odyssey Re Holdings Corp.+ 8,614 191,059 Legg Mason, Inc.+ 3,430 182,716 Golden West Financial Corp. 1,522 168,866 Blackrock, Inc. 2,120 155,799 Franklin Resources, Inc. 2,490 138,842 SLM Corp. 3,000 133,800 Trizec Properties, Inc. 7,688 122,777 UBS AG 1,730 121,671 Providian Financial Corp.*+ 7,669 119,176 Host Marriott Corp.*+ 7,970 111,819 AmeriCredit Corp.* 4,864 101,560 Wells Fargo & Co. 1,449 86,404 Investors Financial Services Corp. 1,760 79,429 American Capital Strategies, Ltd. 2,270 71,142 First Marblehead Corp.* 1,398 64,867 Prudential Financial, Inc. 1,330 62,563 Capital Automotive REIT 1,394 43,590 W.R. Berkley Corp. 931 39,251 ProAssurance Corp.* 1,020 35,720 Piper Jaffray Cos., Inc.* 870 34,443 Fannie Mae 371 23,521 ------------ TOTAL COMMON STOCKS (Cost $32,208,290) 34,034,559 ------------ See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- FINANCIAL SERVICES FUND MARKET FACE VALUE AMOUNT (NOTE 1) - ------------------------------------------------------------------------------- SECURITIES LENDING COLLATERAL 18.3% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) $ 6,332,886 $ 6,332,886 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $6,332,886) 6,332,886 ------------ TOTAL INVESTMENTS 116.5% (Cost $38,541,176) $ 40,367,445 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (16.5)% $ (5,720,277) ============ NET ASSETS -- 100.0% $ 34,647,168 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. REIT--REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. 30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- HEALTH CARE FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.1% Pfizer, Inc. 136,433 $ 4,174,850 Johnson & Johnson, Inc.+ 52,849 2,976,984 Abbott Laboratories 45,890 1,943,900 Eli Lilly & Co. 27,453 1,648,553 Merck & Co., Inc. 49,138 1,621,554 Bristol-Myers Squibb Co.+ 65,218 1,543,710 Genentech, Inc.*+ 28,320 1,484,534 UnitedHealth Group, Inc. 19,938 1,470,228 Wyeth 36,967 1,382,566 Amgen, Inc.*+ 23,017 1,304,604 Guidant Corp.+ 19,163 1,265,525 Medtronic, Inc. 24,134 1,252,555 Boston Scientific Corp.*+ 28,940 1,149,786 Gilead Sciences, Inc.*+ 30,598 1,143,753 Biogen Idec, Inc.*+ 13,810 844,758 CIGNA Corp. 11,435 796,219 Baxter International, Inc. 23,506 755,953 Aetna, Inc. 7,470 746,477 Zimmer Holdings, Inc.* 9,260 731,910 Allergan, Inc.+ 9,800 710,990 St. Jude Medical, Inc.* 9,320 701,516 Genzyme Corp.*+ 12,610 686,110 Anthem, Inc.*+ 7,378 643,730 WellPoint Health Networks, Inc.* 5,992 629,699 Caremark Rx, Inc.*+ 18,403 590,184 Schering AG -- SP ADR 9,290 582,947 Becton, Dickinson & Co. 10,310 533,027 Forest Laboratories, Inc.* 11,816 531,484 IMS Health, Inc. 19,800 473,616 Quest Diagnostics, Inc.+ 5,270 464,919 Stryker Corp. 9,626 462,818 Varian Medical Systems, Inc.* 12,920 446,644 Celgene Corp.*+ 7,650 445,459 Patterson Cos., Inc.*+ 5,690 435,626 McKesson Corp.+ 16,892 433,280 Biomet, Inc.+ 9,240 433,171 HCA, Inc. 11,343 432,735 Millennium Pharmaceuticals, Inc.*+ 30,685 420,691 C.R. Bard, Inc. 7,300 413,399 DENTSPLY International, Inc. 7,760 403,054 Cardinal Health, Inc. 9,064 396,731 Sepracor, Inc.*+ 8,060 393,167 Express Scripts, Inc.*+ 5,990 391,387 Schering-Plough Corp.+ 19,584 373,271 Fisher Scientific International, Inc.*+ 6,380 372,145 Bausch & Lomb, Inc.+ 5,600 372,120 Applera Corp. -- Applied Biosystems Group 19,350 365,134 ImClone Systems, Inc.*+ 6,620 349,867 Laboratory Corporation of America Holdings*+ 7,730 337,956 Elan Corp. PLC -- SP ADR*+ 14,370 336,258 Novo-Nordisk A/S -- SP ADR 5,700 312,189 Hillenbrand Industries, Inc. 6,167 311,619 Coventry Health Care, Inc.*+ 5,590 298,338 Cephalon, Inc.*+ 5,870 281,173 Henry Schein, Inc.*+ 4,490 279,772 Covance, Inc.* 6,890 275,393 Dade Behring Holdings, Inc.* 4,560 254,074 Chiron Corp.*+ 5,340 236,028 MGI Pharma, Inc.* 8,590 229,267 Edwards Lifesciences Corp.* 6,745 225,957 Amylin Pharmaceuticals, Inc.*+ 10,830 222,232 Barr Pharmaceuticals, Inc.* 5,055 209,429 Humana, Inc.* 10,460 208,991 Cerner Corp.*+ 4,660 201,592 Pacificare Health Systems, Inc.* 5,270 193,409 Beckman Coulter, Inc. 3,364 188,788 Andrx Corp.* 8,391 187,623 DaVita, Inc.* 5,990 186,589 Omnicare, Inc. 6,561 186,070 First Health Group Corp.* 11,501 185,051 Invacare Corp. 3,844 176,824 Sierra Health Services, Inc.* 3,680 176,382 Invitrogen Corp.*+ 3,160 173,768 Health Management Associates, Inc. -- Class A+ 8,500 173,655 Manor Care, Inc. 5,780 173,169 WellChoice, Inc.* 4,330 161,639 Hospira, Inc.* 5,240 160,344 Pharmaceutical Product Development, Inc.* 4,431 159,516 Universal Health Services, Inc. -- Class B+ 3,610 157,035 Health Net, Inc.* 6,090 150,545 Visx, Inc.*+ 6,610 136,166 Accredo Health, Inc.* 5,728 135,009 Community Health Systems, Inc.* 4,900 130,732 Haemonetics Corp./MA* 3,890 127,748 American Healthways, Inc.* 4,230 123,135 Vertex Pharmaceuticals, Inc.*+ 11,707 122,924 Conmed Corp.* 4,560 119,928 Chemed Corp. 2,010 112,037 Service Corporation International/US* 17,950 111,470 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- HEALTH CARE FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- Priority Healthcare Corp. -- Class B* 5,270 $ 106,191 Sola International, Inc.* 5,350 101,918 Arthocare Corp.* 3,450 101,051 Analogic Corp.+ 2,142 89,300 Pediatrix Medical Group, Inc.* 1,430 78,436 Regeneron Pharmaceuticals, Inc.* 8,920 77,426 RehabCare Group, Inc.* 2,712 62,457 Protein Design Labs, Inc.* 2,940 57,565 Triad Hospitals, Inc.* 1,529 52,659 ----------- TOTAL COMMON STOCKS (Cost $45,094,190) 50,984,167 ----------- FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.1% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 538,317 538,317 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $538,317) 538,317 ----------- SECURITIES LENDING COLLATERAL 17.1% Investment in Securities Lending Short Term Investment Porfolio Held by U.S. Bank (Note 7) 8,913,225 8,913,225 ----------- TOTAL SECURITIES LENDING COLLATERAL (Cost $8,913,225) 8,913,225 ----------- TOTAL INVESTMENTS 116.3% (Cost $54,545,732) $60,435,709 =========== LIABILITIES IN EXCESS OF OTHER ASSETS -- (16.3)% $(8,481,638) =========== NET ASSETS -- 100.0% $51,954,071 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. 32 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- INTERNET FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.5% Cisco Systems, Inc.* 67,909 $ 1,229,153 eBay, Inc.*+ 10,769 990,102 Qualcomm, Inc.+ 21,380 834,675 Time Warner, Inc.*+ 50,478 814,715 Yahoo!, Inc.*+ 22,240 754,158 Research In Motion Ltd.*+ 7,824 597,284 Amazon.com, Inc.*+ 12,889 526,644 Intuit, Inc.*+ 10,932 496,313 Symantec Corp.*+ 8,674 476,029 Qwest Communications International, Inc.* 118,130 393,373 McAfee, Inc.*+ 17,319 348,112 TIBCO Software, Inc.* 34,753 295,748 Sun Microsystems, Inc.* 70,921 286,521 Juniper Networks, Inc.*+ 12,011 283,460 WebMD Corp.* 38,517 268,078 EarthLink, Inc.*+ 25,989 267,687 E*Trade Financial Corp.* 22,730 259,577 F5 Networks, Inc.*+ 8,336 253,915 InterActiveCorp*+ 11,213 246,910 CheckFree Corp.* 8,681 240,203 Red Hat, Inc.*+ 18,450 225,828 VeriSign, Inc.* 10,644 211,603 United Online, Inc.* 18,630 179,221 Jupitermedia Corp.* 7,706 137,167 Priceline.com, Inc.*+ 5,976 132,488 ValueClick, Inc.* 13,795 130,225 Netflix, Inc.*+ 8,360 128,911 Digitas, Inc.* 15,630 120,820 aQuantive, Inc.* 12,520 120,818 Broadcom Corp. -- Class A*+ 4,406 120,240 Siebel Systems, Inc.* 13,210 99,603 Foundry Networks, Inc.* 10,303 97,775 PalmOne, Inc.*+ 3,030 92,233 NetBank, Inc. 8,400 84,084 Check Point Software Technologies Ltd.* 4,820 81,795 BEA Systems, Inc.* 9,079 62,736 Monster Worldwide, Inc.* 2,336 57,559 WebEx Communications, Inc.* 1,910 41,676 Sonicwall, Inc.* 6,080 41,101 CNET Networks, Inc.* 2,560 23,424 Akamai Technologies, Inc.*+ 1,620 22,761 ------------ TOTAL COMMON STOCKS (Cost $8,278,548) 12,074,725 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.5% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 182,163 $ 182,163 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $182,163) 182,163 ------------ SECURITIES LENDING COLLATERAL 26.6% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 3,269,240 3,269,240 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $3,269,240) 3,269,240 ------------ TOTAL INVESTMENTS 126.6% (Cost $11,729,951) $ 15,526,128 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (26.6)% $ (3,266,043) ============ NET ASSETS -- 100.0% $ 12,260,085 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 33 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- LEISURE FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 97.9% Time Warner, Inc.*+ 150,162 $ 2,423,615 Walt Disney Co. 88,600 1,997,930 McDonald's Corp. 64,620 1,811,299 Viacom, Inc. -- Class B 43,630 1,464,223 Starbucks Corp.*+ 30,864 1,403,077 International Game Technology, Inc. 36,254 1,303,331 Marriott International, Inc. -- Class A+ 23,036 1,196,951 Mattel, Inc.+ 60,968 1,105,350 Electronic Arts, Inc.*+ 22,818 1,049,400 Carnival Corp.+ 22,013 1,040,995 MGM Mirage, Inc.* 20,180 1,001,937 Fox Entertainment Group, Inc. -- Class A*+ 28,360 786,706 Brinker International, Inc.*+ 25,160 783,734 Choice Hotels International, Inc. 13,323 767,272 Applebee's International, Inc. 29,917 756,302 Hasbro, Inc.+ 38,406 722,033 CEC Entertainment, Inc.* 19,490 716,257 Ruby Tuesday, Inc.+ 25,674 715,534 Jack in the Box, Inc.* 21,340 677,118 WMS Industries, Inc.*+ 25,380 652,012 Argosy Gaming Co.* 15,236 597,251 Hilton Hotels Corp. 30,640 577,258 THQ, Inc.*+ 29,140 567,064 Lone Star Steakhouse & Saloon, Inc. 21,809 563,326 Ryan's Restaurant Group, Inc.* 37,600 557,984 Yum! Brands, Inc.+ 13,718 557,774 Papa John's International, Inc.* 17,845 547,485 4Kids Entertainment, Inc.* 26,637 538,067 CBRL Group, Inc.+ 14,820 534,706 Krispy Kreme Doughnuts, Inc.*+ 42,190 534,125 Landry's Restaurants, Inc. 18,500 504,865 Arctic Cat, Inc. 19,309 501,069 Multimedia Games, Inc.* 31,450 487,475 Sonic Corp.* 18,920 484,920 Eastman Kodak Co.+ 14,448 465,515 Sturm Ruger & Co., Inc. 51,163 460,979 Starwood Hotels & Resorts Worldwide, Inc. 9,516 441,733 Activision, Inc.* 31,826 441,427 Polaris Industries, Inc. 7,788 434,726 Outback Steakhouse, Inc. 9,948 413,140 Darden Restaurants, Inc. 17,520 408,566 Bally Total Fitness Holding Corp.* 105,170 382,819 Wendy's International, Inc. 11,130 373,968 News Corp. Ltd. -- SP ADR+ 11,330 372,417 Scientific Games Corp. -- Class A* 14,522 277,370 Mandalay Resort Group 4,022 276,110 Marvel Enterprises, Inc.* 17,837 259,707 Caesars Entertainment, Inc.* 14,150 236,305 Harrah's Entertainment, Inc. 4,398 233,006 Pixar, Inc.*+ 2,760 217,764 International Speedway Corp. -- Class A 4,200 209,580 Shuffle Master, Inc.*+ 5,170 193,668 Action Performance Cos., Inc. 18,620 188,621 Jakks Pacific, Inc.* 7,370 169,510 Brunswick Corp. 3,270 149,635 Meade Instruments Corp.* 44,873 139,555 GTECH Holdings Corp. 5,300 134,196 Station Casinos, Inc. 1,610 78,954 Metro-Goldwyn-Mayer, Inc.* 6,610 76,478 Boyd Gaming Corp. 1,190 33,498 ------------ TOTAL COMMON STOCKS (Cost $34,494,768) 36,997,692 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 0.9% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 349,928 349,928 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $349,928) 349,928 ------------ SECURITIES LENDING COLLATERAL 14.1% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 5,306,998 5,306,998 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $5,306,998) 5,306,998 ------------ TOTAL INVESTMENTS 112.9% (Cost $40,151,694) $ 42,654,618 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (12.9)% $ (4,867,210) ============ NET ASSETS -- 100.0% $ 37,787,408 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. 34 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- PRECIOUS METALS FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.6% Newmont Mining Corp.+ 725,732 $ 33,042,578 Freeport-McMoRan Copper & Gold, Inc. -- Class B+ 619,886 25,105,383 Barrick Gold Corp. 671,842 14,135,556 AngloGold Ashanti Ltd. -- SP ADR+ 358,600 13,949,540 Placer Dome, Inc.+ 656,606 13,053,327 Pan American Silver Corp.*+ 648,864 11,050,154 Coeur d'Alene Mines Corp.*+ 2,281,671 10,815,121 Gold Fields Ltd. -- SP ADR+ 784,077 10,702,651 Goldcorp, Inc. 768,412 10,650,190 Harmony Gold Mining Co. Ltd. -- SP ADR+ 763,681 10,401,335 Wheaton River Minerals Ltd.*+ 2,673,456 8,421,386 Golden Star Resources Ltd.*+ 1,544,738 8,140,769 Silver Standard Resources, Inc.*+ 491,167 8,114,079 Hecla Mining Co.* 1,072,536 7,979,668 Glamis Gold Ltd.* 422,527 7,913,931 Bema Gold Corp.* 2,386,585 7,613,206 Kinross Gold Corp.* 1,058,384 7,175,844 Meridian Gold, Inc.* 417,873 6,986,837 Apex Silver Mines Ltd.* 316,216 6,861,887 Agnico-Eagle Mines Ltd.+ 450,354 6,431,055 Cia de Minas Buenaventura SA -- SP ADR 267,684 6,357,495 Stillwater Mining Co.* 399,485 6,192,017 Durban Roodepoort Deep Ltd. -- SP ADR*+ 2,107,233 4,237,646 ------------- TOTAL COMMON STOCKS (Cost $172,908,721) 245,331,655 ------------- FACE AMOUNT ------------- REPURCHASE AGREEMENTS 1.9% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 4,795,056 $ 4,795,056 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $4,795,056) 4,795,056 ------------- SECURITIES LENDING COLLATERAL 24.7% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 61,413,695 61,413,695 ------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $61,413,695) 61,413,695 ------------- TOTAL INVESTMENTS 125.2% (Cost $239,117,472) $ 311,540,406 ============= LIABILITIES IN EXCESS OF OTHER ASSETS -- (25.2)% $ (62,638,209) ============= NET ASSETS -- 100.0% $ 248,902,197 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 35 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- REAL ESTATE FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 97.0% Equity Office Properties Trust+ 35,024 $ 954,404 Simon Property Group, Inc.+ 17,676 947,964 Equity Residential 29,060 900,860 Rouse Co. 13,050 872,784 Vornado Realty Trust 13,356 837,154 General Growth Properties, Inc.+ 24,283 752,773 KIMCO Realty Corp. 14,435 740,515 Archstone-Smith Trust 23,298 737,149 Plum Creek Timber (REIT) Co., Inc. 20,937 733,423 Boston Properties, Inc. 13,120 726,717 Public Storage, Inc. 14,580 722,439 ProLogis 20,319 716,042 Duke Realty Corp. 19,700 654,040 AvalonBay Communities, Inc.+ 10,370 624,481 iStar Financial, Inc. 14,990 618,038 Developers Diversified Realty Corp. 14,790 579,028 Health Care Property Investors, Inc. 21,070 547,820 Apartment Investment & Management Co. -- Class A 15,350 533,873 Liberty Property Trust+ 13,070 520,709 Macerich Co.+ 9,610 512,117 Weingarten Realty Investors 15,225 502,577 Mack-Cali Realty Corp. 11,300 500,590 AMB Property Corp. 13,190 488,294 Chelsea Property Group, Inc. 7,260 487,146 Regency Centers Corp.+ 10,460 486,285 Mills Corp. 9,360 485,503 New Plan Excel Realty Trust 19,162 479,050 Hospitality Properties Trust 11,210 476,313 Pan Pacific Retail Properties, Inc. 8,350 451,735 United Dominion Realty Trust, Inc.+ 22,489 445,957 Thornburg Mortgage, Inc. 15,120 438,631 CenterPoint Properties Trust 10,010 436,236 Arden Realty, Inc. 13,373 435,692 Rayonier, Inc. 9,560 432,494 Federal Realty Investment Trust+ 9,820 432,080 CBL & Associates Properties, Inc.+ 7,010 427,259 Shurgard Storage Centers, Inc. -- Class A 10,660 413,608 BRE Properties -- Class A+ 10,770 413,029 CarrAmerica Realty Corp. 12,550 410,385 SL Green Realty Corp. 7,850 406,708 HRPT Properties Trust 37,001 406,641 Health Care REIT, Inc. 11,550 406,560 Camden Property Trust+ 8,540 394,548 Reckson Associates Realty Corp.+ 13,550 389,563 Prentiss Properties Trust 10,710 385,560 Realty Income Corp. 8,560 385,457 Pennsylvania Real Estate Investment Trust 9,716 375,621 Essex Property Trust, Inc. 5,200 373,620 Healthcare Realty Trust, Inc. 9,510 371,270 Cousins Properties, Inc. 10,437 358,093 First Industrial Realty Trust, Inc.+ 9,627 355,236 Crescent Real Estate EQT Co.+ 22,546 354,874 Washington Real Estate Investment Trust 11,310 342,693 Taubman Centers, Inc. 13,245 342,118 Alexandria Real Estate Equities, Inc. 5,112 335,961 Nationwide Health Properties, Inc. 16,098 334,034 Heritage Property Investment Trust 11,212 327,054 Highwoods Properties, Inc. 13,050 321,161 Home Properties, Inc. 7,980 315,689 Brandywine Realty Trust+ 11,060 314,989 Capital Automotive REIT 9,954 311,262 Kilroy Realty Corp. 8,175 310,895 Post Properties, Inc. 10,300 307,970 Lexington Corporate Properties Trust 13,512 293,346 Colonial Properties Trust 7,097 285,441 Gables Residential Trust 8,287 283,001 Glimcher Realty Trust 11,322 275,125 Commercial Net Lease Realty 15,006 273,409 Corporate Office Properties Trust SBI/MD 10,652 272,904 Summit Properties, Inc. 10,050 271,853 Entertainment Properties Trust+ 7,160 270,648 LaSalle Hotel Properties 9,739 268,796 PS Business Parks, Inc. 6,685 266,397 Mid-America Apartment Communities, Inc. 6,630 258,239 Manufactured Home Communities, Inc. 7,673 255,051 Eastgroup Properties 7,522 249,730 Sun Communities, Inc. 6,371 249,679 National Health Investors, Inc. 8,756 249,021 Tanger Factory Outlet Centers, Inc. 5,307 237,647 Cornerstone Realty Income Trust, Inc. 24,331 237,471 Sovran Self Storage, Inc. 5,874 230,143 FelCor Lodging Trust, Inc.* 19,406 219,482 Innkeepers USA Trust 17,640 219,442 AMLI Residential Properties Trust 7,130 217,822 Glenborough Realty Trust, Inc. 10,257 213,038 Parkway Properties, Inc./MD 4,328 201,036 Saul Centers, Inc. 6,088 200,173 See Notes to Financial Statements. 36 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- REAL ESTATE FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- Equity Inns, Inc. 19,800 $ 195,624 CRT Properties, Inc. 9,039 193,887 Kramont Realty Trust 10,395 193,347 US Restaurant Properties, Inc. 11,259 190,165 Bedford Property Investors, Inc. 5,930 179,916 Ramco-Gershenson Properties 6,609 178,972 Town & Country Trust 6,740 171,533 Meristar Hospitality Corp.* 31,148 169,757 Correctional Properties Trust 5,688 155,282 Winston Hotels, Inc. 14,389 153,962 Associated Estates Realty Corp. 14,973 149,580 Urstadt Biddle Properties, Inc. 8,375 127,635 ------------ TOTAL COMMON STOCKS (Cost $35,105,419) 39,461,325 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.0% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 406,636 406,636 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $406,636) 406,636 ------------ SECURITIES LENDING COLLATERAL 7.2% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 2,919,459 2,919,459 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $2,919,459) 2,919,459 ------------ TOTAL INVESTMENTS 105.2% (Cost $38,431,514) $ 42,787,420 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (5.2)% $ (2,128,848) ============ NET ASSETS -- 100.0% $ 40,658,572 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. REIT--REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 37 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- RETAILING FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.2% Wal-Mart Stores, Inc. 14,818 $ 788,318 Home Depot, Inc. 14,918 584,786 eBay, Inc.*+ 5,260 483,604 Lowe's Cos., Inc.+ 7,944 431,756 Costco Wholesale Corp.+ 7,540 313,362 Target Corp. 6,273 283,853 Amazon.com, Inc.*+ 6,865 280,504 The Gap, Inc.+ 14,630 273,581 InterActiveCorp*+ 11,480 252,790 Sherwin-Williams Co. 5,350 235,186 Limited Brands, Inc.+ 10,350 230,701 Weight Watchers International, Inc.*+ 5,100 197,982 Walgreen Co. 5,461 195,668 Staples, Inc.+ 6,460 192,637 Office Depot, Inc.*+ 12,795 192,309 Abercrombie & Fitch Co. -- Class A+ 5,990 188,685 Boise Cascade Corp. 5,570 185,370 Claire's Stores, Inc. 7,190 180,038 BJ's Wholesale Club, Inc.*+ 6,439 176,042 Neiman-Marcus Group, Inc. -- Class A+ 2,990 171,925 CVS Corp. 4,015 169,152 Nordstrom, Inc. 4,210 160,990 AutoZone, Inc.*+ 2,080 160,680 Advance Auto Parts, Inc.*+ 4,670 160,648 Regis Corp. 3,940 158,467 Chico's FAS, Inc.*+ 4,620 158,004 Building Material Holding Corp. 5,555 152,874 Urban Outfitters, Inc.*+ 4,400 151,360 Rent-A-Center, Inc.* 5,850 151,281 Insight Enterprises, Inc.* 8,810 148,360 Select Comfort Corp.* 7,970 145,054 Dress Barn, Inc.* 7,943 138,605 J. Jill Group, Inc.* 6,864 136,250 Movie Gallery, Inc. 7,670 134,455 Rite Aid Corp.*+ 37,300 131,296 PETCO Animal Supplies, Inc.* 3,970 129,660 JC Penney Holding Co., Inc.+ 3,660 129,125 Kmart Holding Corp.*+ 1,390 121,583 PEP Boys-Manny Moe & Jack+ 8,540 119,560 Payless Shoesource, Inc.*+ 11,760 119,129 Kohl's Corp.*+ 2,289 110,307 Charming Shoppes, Inc.* 14,564 103,696 United Auto Group, Inc. 4,060 101,865 NeighborCare, Inc.* 3,735 94,682 Best Buy Co., Inc. 1,729 93,781 May Department Stores Co. 3,585 91,884 AnnTaylor Stores Corp.* 3,811 89,177 Aaron Rents, Inc.+ 3,410 74,202 American Eagle Outfitters, Inc.+ 1,913 70,494 Tractor Supply Co.* 2,230 70,111 Bed Bath & Beyond, Inc.* 1,610 59,747 Christopher & Banks Corp. 3,680 58,917 Petsmart, Inc. 1,977 56,127 TJX Cos., Inc. 2,154 47,474 Sears Roebuck and Co.+ 1,057 42,121 Adesa, Inc.* 2,500 41,075 AutoNation, Inc.*+ 2,390 40,821 Netflix, Inc.*+ 2,580 39,784 Federated Department Stores, Inc. 660 29,984 Stein Mart, Inc.* 1,680 25,570 Longs Drug Stores Corp. 1,010 24,442 Dollar General Corp. 1,170 23,576 Genuine Parts Co. 560 21,493 Sonic Automotive, Inc. 820 16,441 Williams-Sonoma, Inc.* 300 11,265 ------------ TOTAL COMMON STOCKS (Cost $7,766,569) 10,154,666 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.4% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 142,440 142,440 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $142,440) 142,440 ------------ SECURITIES LENDING COLLATERAL 22.3% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 2,309,636 2,309,636 ------------ See Notes to Financial Statements. 38 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- RETAILING FUND MARKET VALUE (NOTE 1) - ------------------------------------------------------------------------------- TOTAL SECURITIES LENDING COLLATERAL (Cost $2,309,636) $ 2,309,636 ------------ TOTAL INVESTMENTS 121.9% (Cost $10,218,645) $ 12,606,742 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (21.9)% $ (2,266,432) ============ NET ASSETS -- 100.0% $ 10,340,310 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 39 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- TECHNOLOGY FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 98.0% Microsoft Corp. 107,702 $ 2,977,960 Intel Corp. 83,457 1,674,147 Cisco Systems, Inc.*+ 85,698 1,551,134 International Business Machines Corp. 15,217 1,304,706 Oracle Corp.* 109,461 1,234,720 Hewlett-Packard Co.+ 58,806 1,102,612 Dell, Inc.*+ 25,317 901,285 Qualcomm, Inc. 20,470 799,149 Yahoo!, Inc.*+ 19,734 669,180 Texas Instruments, Inc. 28,983 616,758 Motorola, Inc. 33,592 606,000 Corning, Inc.*+ 47,485 526,134 First Data Corp. 12,015 522,653 Sun Microsystems, Inc.* 121,413 490,509 Computer Associates International, Inc.+ 14,580 383,454 Intuit, Inc.*+ 8,220 373,188 Computer Sciences Corp.* 7,786 366,721 Symantec Corp.*+ 6,378 350,025 Analog Devices, Inc.+ 8,110 314,506 Adobe Systems, Inc. 6,320 312,650 Lucent Technologies, Inc.*+ 96,900 307,173 EMC Corp./MA*+ 26,010 300,155 Micron Technology, Inc.*+ 24,814 298,512 Applied Materials, Inc.* 17,859 294,495 Lexmark International, Inc.* 3,124 262,447 Network Appliance, Inc.*+ 10,804 248,492 Agilent Technologies, Inc.* 11,230 242,231 Iron Mountain, Inc.* 6,720 227,472 Jabil Circuit, Inc.*+ 9,564 219,972 Autodesk, Inc.+ 4,520 219,808 Xerox Corp.*+ 15,388 216,663 CDW Corp.+ 3,728 216,336 Apple Computer, Inc.* 5,506 213,358 Juniper Networks, Inc.*+ 8,874 209,426 KLA-Tencor Corp.*+ 4,972 206,239 Broadcom Corp. -- Class A*+ 7,206 196,652 National Semiconductor Corp.*+ 12,340 191,147 Microchip Technology, Inc.+ 7,089 190,269 Novellus Systems, Inc.* 7,138 189,799 Harris Corp.+ 3,426 188,224 Cadence Design Systems, Inc.*+ 13,746 179,248 McAfee, Inc.*+ 8,805 176,981 Paychex, Inc.+ 5,862 176,739 Electronic Data Systems Corp. 9,100 176,449 Maxim Integrated Products, Inc.+ 4,135 174,869 Sabre Holdings Corp.+ 6,930 169,993 Veritas Software Corp.* 9,372 166,822 Alliance Data Systems Corp.* 4,050 164,268 Advanced Micro Devices, Inc.*+ 12,303 159,939 Automatic Data Processing, Inc. 3,814 157,594 Storage Technology Corp.*+ 5,920 149,539 Tektronix, Inc.+ 4,472 148,694 Ingram Micro, Inc. -- Class A* 8,993 144,787 Xilinx, Inc.+ 5,146 138,942 Siebel Systems, Inc.* 18,092 136,414 CheckFree Corp.* 4,860 134,476 National Instruments Corp.+ 4,442 134,459 BMC Software, Inc.* 8,372 132,361 SunGard Data Systems, Inc.* 5,461 129,808 Teradyne, Inc.*+ 9,063 121,444 Synopsys, Inc.* 7,570 119,833 Polycom, Inc.* 5,794 114,837 Citrix Systems, Inc.*+ 6,520 114,230 Zebra Technologies Corp. -- Class A* 1,865 113,784 Scientific-Atlanta, Inc. 4,370 113,270 Waters Corp.*+ 2,554 112,631 Red Hat, Inc.*+ 9,052 110,796 JDS Uniphase Corp.*+ 32,370 109,087 BearingPoint, Inc.* 12,200 109,068 QLogic Corp.*+ 3,630 107,484 Ceridian Corp.* 5,808 106,925 TIBCO Software, Inc.* 12,370 105,269 MEMC Electronic Materials, Inc.*+ 12,382 104,999 Factset Research Systems, Inc. 1,976 95,243 Fiserv, Inc.* 2,724 94,959 Parametric Technology Corp.* 17,760 93,773 Ask Jeeves, Inc.* 2,832 92,635 Thermo Electron Corp.* 3,264 88,193 Novell, Inc.*+ 13,976 88,189 Plantronics, Inc. 2,028 87,691 PMC - Sierra, Inc.*+ 9,926 87,448 Semtech Corp.*+ 4,538 86,993 Cognizant Technology Solutions Corp.* 2,814 85,855 PerkinElmer, Inc. 4,980 85,756 Hyperion Solutions Corp.*+ 2,462 83,683 ADTRAN, Inc.+ 3,678 83,417 Utstarcom, Inc.*+ 5,086 81,935 Avid Technology, Inc.* 1,734 81,273 RSA Security, Inc.* 4,034 77,856 RF Micro Devices, Inc.* 12,096 76,689 Cognex Corp. 2,854 74,775 Avocent Corp.* 2,772 72,155 See Notes to Financial Statements. 40 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- TECHNOLOGY FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- Nvidia Corp.*+ 4,966 $ 72,106 Atmel Corp.*+ 19,895 72,020 Varian Semiconductor Equipment Associates, Inc.* 2,320 71,688 Anixter International, Inc.*+ 2,020 70,882 Comverse Technology, Inc.*+ 3,624 68,240 Sanmina-SCI Corp.* 9,643 67,983 Cypress Semiconductor Corp.*+ 7,567 66,892 Micrel, Inc.* 6,410 66,728 Cymer, Inc.*+ 2,320 66,491 Benchmark Electronics, Inc.* 2,220 66,156 eFunds Corp.* 3,440 63,950 Skyworks Solutions, Inc.*+ 6,720 63,840 Scansource, Inc.* 980 62,524 Websense, Inc.* 1,494 62,255 Adaptec, Inc.* 7,966 60,542 Technitrol, Inc.* 2,994 58,383 CSG Systems International, Inc.* 3,750 57,788 Trimble Navigation Ltd.* 1,818 57,449 Flir Systems, Inc.*+ 980 57,330 Mercury Interactive Corp.* 1,630 56,854 Axcelis Technologies, Inc.* 6,720 55,642 Mettler Toledo International, Inc.* 1,178 55,625 Akamai Technologies, Inc.*+ 3,950 55,498 THQ, Inc.*+ 2,832 55,111 Vishay Intertechnology, Inc.*+ 4,062 52,400 ADC Telecommunications, Inc.* 28,832 52,186 BEA Systems, Inc.* 7,438 51,397 Global Imaging Systems, Inc.* 1,652 51,344 Progress Software Corp.* 2,564 51,024 Rogers Corp.* 1,192 50,648 Black Box Corp. 1,326 48,996 Agilsys, Inc. 2,786 48,170 Sandisk Corp.*+ 1,618 47,116 WebEx Communications, Inc.* 2,143 46,760 Hewitt Associates, Inc. -- Class A* 1,720 45,511 DSP Group, Inc.* 2,139 45,026 Filenet Corp.* 2,572 44,907 Reynolds & Reynolds Co. -- Class A 1,720 42,432 j2 Global Communications, Inc.* 1,270 40,119 Foundry Networks, Inc.* 3,931 37,305 Symmetricom, Inc.* 3,940 37,272 DST Systems, Inc.*+ 828 36,821 Silicon Laboratories, Inc.* 1,110 36,730 Helix Technology Corp. 2,144 29,148 C-COR, Inc.* 3,300 27,885 Itron, Inc.* 1,474 25,721 Radisys Corp.* 1,700 23,715 Kulicke & Soffa Industries, Inc.* 4,096 23,142 Keithley Instruments, Inc. 1,316 22,964 Jack Henry & Associates, Inc. 880 16,518 Electro Scientific Industries, Inc.* 930 16,136 Inter-Tel, Inc. 660 14,269 Littelfuse, Inc.* 360 12,431 MapInfo Corp.* 608 6,566 SCM Microsystems, Inc.* 1,911 5,236 Solectron Corp.*+ 1,010 5,000 CIENA Corp.* 1,660 3,287 ------------ TOTAL COMMON STOCKS (Cost $24,727,567) 30,461,077 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.1% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 326,272 326,272 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $326,272) 326,272 ------------ SECURITIES LENDING COLLATERAL 15.8% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 4,925,840 4,925,840 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $4,925,840) 4,925,840 ------------ TOTAL INVESTMENTS 114.9% (Cost $29,979,679) $ 35,713,189 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (14.9)% $ (4,624,587) ============ NET ASSETS -- 100.0% $ 31,088,602 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 41 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- TELECOMMUNICATIONS FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 97.6% Vodafone Group PLC -- SP ADR+ 58,053 $ 1,399,658 Cisco Systems, Inc.* 58,440 1,057,764 Verizon Communications, Inc. 22,779 897,037 SBC Communications, Inc.+ 34,035 883,208 Qualcomm, Inc. 20,122 785,563 Nokia OYJ -- SP ADR 52,914 725,980 Telefonaktiebolaget LM Ericsson -- SP ADR*+ 22,551 704,493 BellSouth Corp.+ 24,278 658,419 AT&T Wireless Services, Inc.* 44,345 655,419 Motorola, Inc. 35,294 636,704 Sprint Corp.+ 28,702 577,771 Nextel Communications, Inc. -- Class A* 22,686 540,834 Corning, Inc.*+ 41,936 464,651 Avaya, Inc.* 29,710 414,157 Alltel Corp.+ 7,537 413,857 AT&T Corp.+ 26,596 380,855 Lucent Technologies, Inc.*+ 111,420 353,201 CenturyTel, Inc. 10,210 349,590 Juniper Networks, Inc.*+ 14,010 330,636 Alcatel SA -- SP ADR*+ 26,428 310,000 Nextel Partners, Inc. -- Class A*+ 14,470 239,913 Scientific-Atlanta, Inc. 8,467 219,465 Tellabs, Inc.*+ 22,867 210,148 JDS Uniphase Corp.*+ 59,618 200,913 Telephone & Data Systems, Inc. 2,365 199,062 Citizens Communications Co.+ 13,255 177,484 QLogic Corp.*+ 5,970 176,772 NII Holdings, Inc. -- Class B*+ 4,190 172,670 Western Wireless Corp.*+ 6,600 169,686 General Communication -- Class A* 18,350 166,067 Price Communications Corp.* 10,705 163,251 Harris Corp.+ 2,925 160,700 Plantronics, Inc. 3,390 146,584 CommScope, Inc.*+ 5,585 120,636 ADTRAN, Inc.+ 5,245 118,957 Comverse Technology, Inc.*+ 5,880 110,720 Boston Communications Group, Inc.* 12,510 109,713 Level 3 Communications, Inc.*+ 41,520 107,537 Commonwealth Telephone Enterprises, Inc.* 2,420 105,391 Utstarcom, Inc.*+ 6,390 102,943 Foundry Networks, Inc.* 10,564 100,252 Andrew Corp.* 8,009 98,030 ViaSat, Inc.* 4,783 96,138 Polycom, Inc.* 4,828 95,691 Belden CDT, Inc. 3,665 79,897 Cia Telecomunicaciones de Chile SA-SP ADR 7,140 79,183 Advanced Fibre Communications, Inc.* 4,960 78,864 Symmetricom, Inc.* 7,452 70,496 Crown Castle International Corp.* 4,720 70,234 ADC Telecommunications, Inc.* 38,510 69,703 Inter-Tel, Inc. 3,220 69,616 McData Corp. -- Class A* 13,030 65,541 Harmonic, Inc.* 9,115 60,615 C-COR, Inc.* 6,545 55,305 CIENA Corp.* 27,572 54,593 Audiovox Corp. -- Class A* 3,150 53,046 Digi International, Inc.* 4,408 50,383 Adaptec, Inc.* 6,575 49,970 Bel Fuse, Inc. -- Class B 1,350 44,658 China Telecom Corp. Ltd. -- SP ADR 1,360 43,928 Deutsche Telekom AG -- SP ADR*+ 2,100 39,186 Powerwave Technologies, Inc.* 5,740 35,358 Black Box Corp.+ 880 32,516 American Tower Corp. -- Class A*+ 1,920 29,472 Telecomunicacoes Brasileiras SA -- SP ADR 532 14,630 SCM Microsystems, Inc.* 4,794 13,136 Alamosa Holdings, Inc.*+ 1,120 8,557 Brasil Telecom Participacoes SP ADR 250 8,100 MCI, Inc. 140 2,345 Tele Leste Celular Participacoes SA -- SP ADR* 8 122 ------------ TOTAL COMMON STOCKS (Cost $13,479,307) 17,287,974 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.1% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 195,035 195,035 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $195,035) 195,035 ------------ See Notes to Financial Statements. 42 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- TELECOMMUNICATIONS FUND MARKET FACE VALUE AMOUNT (NOTE 1) - ------------------------------------------------------------------------------- SECURITIES LENDING COLLATERAL 16.7% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) $ 2,947,994 $ 2,947,994 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $2,947,994) 2,947,994 ------------ TOTAL INVESTMENTS 115.4% (Cost $16,622,336) $ 20,431,003 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (15.4)% $ (2,724,253) ============ NET ASSETS -- 100.0% $ 17,706,750 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. ADR--AMERICAN DEPOSITORY RECEIPT. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 43 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- TRANSPORTATION FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 100.7% United Parcel Service, Inc. -- Class B+ 37,078 $ 2,814,962 FedEx Corp.+ 20,730 1,776,354 Burlington Northern Santa Fe Corp. 46,138 1,767,547 Norfolk Southern Corp.+ 54,949 1,634,183 Union Pacific Corp. 22,554 1,321,664 Southwest Airlines Co. 72,255 984,113 Ryder System, Inc.+ 20,783 977,632 CSX Corp.+ 24,320 807,424 CNF, Inc. 19,075 781,884 Expeditors International Washington, Inc.+ 13,356 690,505 J.B. Hunt Transport Services, Inc.+ 17,569 652,513 EGL, Inc.*+ 21,489 650,257 Yellow Roadway Corp.*+ 13,858 649,802 Swift Transportation Co., Inc.*+ 38,362 645,249 Arkansas Best Corp. 16,960 621,075 Alaska Air Group, Inc.* 22,741 563,522 C.H. Robinson Worldwide, Inc.+ 11,535 535,109 SkyWest, Inc. 35,066 527,743 Sirva, Inc.* 21,423 490,587 JetBlue Airways Corp.*+ 22,803 477,039 Kirby Corp.* 10,450 419,567 Knight Transportation, Inc.* 18,995 406,873 Heartland Express, Inc. 20,824 384,203 Alexander & Baldwin, Inc. 10,646 361,325 Landstar System, Inc.* 5,380 315,698 AMR Corp.*+ 42,750 313,358 Kansas City Southern* 19,239 291,856 Canadian Pacific Railway Ltd. 8,860 228,411 Werner Enterprises, Inc. 11,107 214,476 SCS Transportation, Inc.* 10,110 191,483 USF Corp.+ 4,471 160,464 Frontier Airlines, Inc.* 18,781 144,238 Forward Air Corp.* 3,211 128,504 HUB Group, Inc. -- Class A* 3,030 112,868 FLYi, Inc.*+ 27,877 108,999 Delta Air Lines, Inc.*+ 18,653 61,368 ExpressJet Holdings, Inc.*+ 5,280 52,853 Mesa Air Group, Inc.* 9,210 46,971 AirTran Holdings, Inc.* 1,300 12,948 ------------ TOTAL COMMON STOCKS (Cost $20,814,986) 23,325,627 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.1% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 247,949 $ 247,949 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $247,949) 247,949 ------------ SECURITIES LENDING COLLATERAL 18.3% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 4,253,130 4,253,130 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $4,253,130) 4,253,130 ------------ TOTAL INVESTMENTS 120.1% (Cost $25,316,065) $ 27,826,706 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (20.1)% $ (4,658,335) ============ NET ASSETS -- 100.0% $ 23,168,371 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. 44 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- UTILITIES FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- COMMON STOCKS 97.9% PG&E Corp.*+ 44,145 $ 1,342,020 Consolidated Edison, Inc.+ 29,384 1,235,303 Sempra Energy+ 32,157 1,163,762 DTE Energy Co.+ 27,086 1,142,758 KeySpan Corp.+ 28,204 1,105,597 Constellation Energy Group, Inc.+ 27,657 1,101,855 Xcel Energy, Inc.+ 62,069 1,075,035 Energy East Corp. 38,570 971,193 Equitable Resources, Inc.+ 17,588 955,204 Pepco Holdings, Inc.+ 47,159 938,464 NSTAR 18,078 887,630 Allegheny Energy, Inc.*+ 55,594 887,280 Northeast Utilities 45,420 880,694 Southern Union Co.*+ 40,947 839,403 OGE Energy Corp. 32,960 831,581 PNM Resources, Inc. 36,260 816,213 Sierra Pacific Resources Corp.*+ 88,020 787,779 WPS Resources Corp. 17,452 785,166 Idacorp, Inc. 26,486 769,683 Atmos Energy Corp. 30,428 766,481 Duquesne Light Holdings, Inc.+ 41,700 748,932 CMS Energy Corp.*+ 77,860 741,227 Avista Corp. 40,555 734,046 Aquila, Inc.*+ 230,868 720,308 Unisource Energy Corp. 29,575 720,151 Cleco Corp. 41,589 716,994 CH Energy Group, Inc. 15,203 696,297 Laclede Group, Inc. 22,824 667,146 Cascade Natural Gas Corp. 29,670 629,894 CenterPoint Energy, Inc.+ 60,026 621,869 Exelon Corp. 16,628 610,081 Dynegy, Inc. -- Class A*+ 122,204 609,798 El Paso Electric Co.* 35,483 570,212 Duke Energy Corp.+ 22,887 523,884 Southern Co.+ 17,410 521,952 Southwest Gas Corp. 21,653 518,589 Dominion Resources, Inc./VA+ 7,567 493,747 UIL Holding Corp. 9,868 485,407 TXU Corp. 9,698 464,728 Reliant Resources, Inc.*+ 45,700 426,381 Wisconsin Energy Corp.+ 12,321 393,040 FirstEnergy Corp.+ 9,368 384,838 NRG Energy, Inc.* 13,060 351,836 Entergy Corp. 5,223 316,566 Texas Genco Holdings, Inc. 6,740 314,421 FPL Group, Inc.+ 4,212 287,764 AES Corp.* 28,682 286,533 American Electric Power Co., Inc.+ 8,137 260,059 Progress Energy, Inc.+ 5,049 213,775 Green Mountain Power Corp. 7,739 201,601 Public Service Enterprise Group, Inc.+ 4,248 180,965 Edison International+ 5,176 137,216 Ameren Corp.+ 2,965 136,835 Calpine Corp.*+ 43,660 126,614 PPL Corp. 2,638 124,461 Aqua America, Inc. 5,110 112,982 New Jersey Resources Corp. 2,680 110,952 Cinergy Corp.+ 1,947 77,101 NiSource, Inc. 438 9,202 MDU Resources Group, Inc. 40 1,053 American States Water Co. 29 722 ------------ TOTAL COMMON STOCKS (Cost $33,035,276) 35,533,280 ------------ FACE AMOUNT ------------ REPURCHASE AGREEMENTS 1.0% Repurchase Agreement (Note 4) 1.71% due 10/01/04 $ 383,043 383,043 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $383,043) 383,043 ------------ SECURITIES LENDING COLLATERAL 22.3% Investment in Securities Lending Short Term Investment Portfolio held by U.S. Bank (Note 7) 8,083,540 8,083,540 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $8,083,540) 8,083,540 ------------ TOTAL INVESTMENTS 121.2% (Cost $41,501,859) $ 43,999,863 ============ LIABILITIES IN EXCESS OF OTHER ASSETS -- (21.2)% $ (7,692,376) ============ NET ASSETS -- 100.0% $ 36,307,487 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 - SEE NOTE 7. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 45 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) - --------------------------------------------------------------------------------
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS FUND FUND FUND FUND - ------------------------------------------------------------------------------------------------------------------------ ASSETS Securities at Value* (Notes 1, 4, and 7) $ 30,411,354 $ 60,297,478 $ 189,732,582 $ 24,046,977 Cash in Custodian Bank 849 59 180 349 Receivable for Securities Sold (Note 1) -- 1,429,876 13,117,181 -- Receivable for Shares Purchased 731,738 1,486,825 1,493,716 1,076,605 Investment Income Receivable (Note 1) 41,745 41,953 15 64,068 Other Assets 1,736 -- -- -- - ------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS 31,187,422 63,256,191 204,343,674 25,187,999 ======================================================================================================================== LIABILITIES Payable upon Return of Securities Loaned (Note 7) 2,386,271 7,583,211 52,868,168 1,748,026 Payable for Securities Purchased (Note 1) 84,416 -- -- 458,979 Liability for Shares Redeemed 154,687 2,491,790 11,982,168 474,186 Investment Advisory Fee Payable (Note 2) 29,982 32,459 100,264 18,758 Transfer Agent Fee Payable (Note 2) 8,818 9,547 29,489 5,517 Distribution and Service Fee Payable (Note 2) 1,818 1,793 2,915 1,655 Portfolio Accounting Fee Payable (Note 2) 3,527 3,819 11,796 2,207 Custody Fees Payable 1,051 1,229 2,853 613 Cash Payable to Custodian Bank -- -- -- -- Other Liabilities 8,882 12,014 38,985 11,693 - ------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 2,679,452 10,135,862 65,036,638 2,721,634 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 28,507,970 $ 53,120,329 $ 139,307,036 $ 22,466,365 ======================================================================================================================== ANALYSIS OF NET ASSETS Paid-In Capital $ 71,525,981 $ 71,936,768 $ 308,400,540 $ 38,481,339 Undistributed Net Investment Income (Loss) 396,930 33,686 (986,373) 100,055 Accumulated Net Realized Loss on Investments (44,672,909) (24,638,964) (214,428,974) (17,329,681) Net Unrealized Appreciation on Investments 1,257,968 5,788,839 46,321,843 1,214,652 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 28,507,970 $ 53,120,329 $ 139,307,036 $ 22,466,365 ======================================================================================================================== Investor Class $ 10,961,569 $ 36,043,992 $ 113,659,242 $ 7,954,599 Advisor Class 15,914,681 9,728,959 21,125,026 12,454,037 A-Class 24,532 54,969 9,943 21,520 C-Class 1,607,188 7,292,409 4,512,825 2,036,209 SHARES OUTSTANDING Investor Class 1,040,148 1,300,517 5,947,933 291,130 Advisor Class 1,574,665 360,421 1,146,779 468,180 A-Class 2,426 2,036 540 809 C-Class 159,226 272,676 244,910 76,921 NET ASSET VALUES Investor Class $ 10.54 $ 27.72 $ 19.11 $ 27.32 Advisor Class 10.11 26.99 18.42 26.60 A-Class 10.11 27.00 18.43 26.60 A-Class Maximum Offering Price Per Share** 10.61 28.35 19.35 27.93 C-Class 10.09 26.74 18.43 26.47
* THE COST OF SECURITIES AT VALUE IS $29,153,386, $54,508,639, $143,410,739, $22,832,325, $29,943,394, $152,333,157, $87,055,259, $38,541,176, $54,545,732, $11,729,951, $40,151,694, AND $239,117,472, RESPECTIVELY. ** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE. See Notes to Financial Statements. 46 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT September 30, 2004 - --------------------------------------------------------------------------------
ENERGY FINANCIAL ELECTRONICS ENERGY SERVICES SERVICES FUND FUND FUND FUND - ------------------------------------------------------------------------------------------------------------------------ ASSETS Securities at Value* (Notes 1, 4, and 7) $ 38,815,360 $ 175,244,730 $ 105,930,444 $ 40,367,445 Cash in Custodian Bank 41 182,016 128,771 -- Receivable for Securities Sold (Note 1) 5,816,508 381,985 2,175,964 2,825,018 Receivable for Shares Purchased 1,969,516 2,961,625 3,077,024 402,435 Investment Income Receivable (Note 1) 494 63,107 21,973 84,531 Other Assets -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS 46,601,919 178,833,463 111,334,176 43,679,429 ======================================================================================================================== LIABILITIES Payable upon Return of Securities Loaned (Note 7) 7,009,431 23,463,476 17,615,930 6,332,886 Payable for Securities Purchased (Note 1) -- -- 307,985 -- Liability for Shares Redeemed 7,600,853 942,962 4,111,380 2,504,128 Investment Advisory Fee Payable (Note 2) 22,658 87,517 48,833 32,402 Transfer Agent Fee Payable (Note 2) 6,664 25,740 14,363 9,530 Distribution and Service Fee Payable (Note 2) 513 4,246 3,140 2,773 Portfolio Accounting Fee Payable (Note 2) 2,666 10,296 5,745 3,812 Custody Fees Payable 640 2,665 2,271 1,251 Cash Payable to Custodian Bank -- -- -- 133,389 Other Liabilities 9,957 36,443 18,000 12,090 - ------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 14,653,382 24,573,345 22,127,647 9,032,261 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 31,948,537 $ 154,260,118 $ 89,206,529 $ 34,647,168 ======================================================================================================================== ANALYSIS OF NET ASSETS Paid-In Capital $ 193,750,431 $ 153,464,775 $ 154,365,533 $ 81,185,343 Undistributed Net Investment Income (Loss) (148,234) 261,019 (338,332) 342,631 Accumulated Net Realized Loss on Investments (170,525,626) (22,377,249) (83,695,857) (48,707,075) Net Unrealized Appreciation on Investments 8,871,966 22,911,573 18,875,185 1,826,269 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 31,948,537 $ 154,260,118 $ 89,206,529 $ 34,647,168 ======================================================================================================================== Investor Class $ 27,666,726 $ 123,176,775 $ 62,626,943 $ 9,502,892 Advisor Class 2,981,712 16,761,933 19,633,906 22,633,469 A-Class 1,023 48,479 9,161 21,671 C-Class 1,299,076 14,272,931 6,936,519 2,489,136 SHARES OUTSTANDING Investor Class 2,837,620 8,717,156 2,428,558 856,174 Advisor Class 316,173 1,215,914 783,224 2,084,027 A-Class 108 3,515 365 1,995 C-Class 138,252 1,044,542 278,177 230,939 NET ASSET VALUES Investor Class $ 9.75 $ 14.13 $ 25.79 $ 11.10 Advisor Class 9.43 13.79 25.07 10.86 A-Class 9.43 13.79 25.08 10.87 A-Class Maximum Offering Price Per Share** 9.90 14.48 26.33 11.41 C-Class 9.40 13.66 24.94 10.78 HEALTH PRECIOUS CARE INTERNET LEISURE METALS FUND FUND FUND FUND - ------------------------------------------------------------------------------------------------------------------------ ASSETS Securities at Value* (Notes 1, 4, and 7) $ 60,435,709 $ 15,526,128 $ 42,654,618 $ 311,540,406 Cash in Custodian Bank 66 -- -- -- Receivable for Securities Sold (Note 1) -- 2,286,133 816,279 4,175,586 Receivable for Shares Purchased 7,144,516 1,000,197 251,832 11,745,056 Investment Income Receivable (Note 1) 38,396 9 6,646 228 Other Assets -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS 67,618,687 18,812,467 43,729,375 327,461,276 ======================================================================================================================== LIABILITIES Payable upon Return of Securities Loaned (Note 7) 8,913,225 3,269,240 5,306,998 61,413,695 Payable for Securities Purchased (Note 1) 251,916 -- -- 2,219,495 Liability for Shares Redeemed 6,434,418 3,260,910 601,000 14,686,563 Investment Advisory Fee Payable (Note 2) 33,122 10,301 17,291 117,841 Transfer Agent Fee Payable (Note 2) 9,742 3,030 5,085 39,280 Distribution and Service Fee Payable (Note 2) 2,936 654 2,305 3,888 Portfolio Accounting Fee Payable (Note 2) 3,897 1,212 2,034 15,712 Custody Fees Payable 969 329 504 3,925 Cash Payable to Custodian Bank -- 1,231 197 10,088 Other Liabilities 14,391 5,475 6,553 48,592 - ------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 15,664,616 6,552,382 5,941,967 78,559,079 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 51,954,071 $ 12,260,085 $ 37,787,408 $ 248,902,197 ======================================================================================================================== ANALYSIS OF NET ASSETS Paid-In Capital $ 83,941,920 $ 48,576,913 $ 57,884,257 $ 269,679,719 Undistributed Net Investment Income (Loss) (205,707) (178,937) (191,908) (537,649) Accumulated Net Realized Loss on Investments (37,672,119) (39,934,068) (22,407,865) (92,662,807) Net Unrealized Appreciation on Investments 5,889,977 3,796,177 2,502,924 72,422,934 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 51,954,071 $ 12,260,085 $ 37,787,408 $ 248,902,197 ======================================================================================================================== Investor Class $ 25,542,023 $ 6,795,240 $ 14,058,162 $ 224,090,645 Advisor Class 22,904,789 3,435,478 21,028,765 4,988,537 A-Class 21,450 11,382 1,042 78,874 C-Class 3,485,809 2,017,985 2,699,439 19,744,141 SHARES OUTSTANDING Investor Class 2,118,947 206,152 528,836 5,438,866 Advisor Class 1,965,245 106,897 820,617 121,737 A-Class 1,840 354 41 1,925 C-Class 299,794 63,313 104,842 494,535 NET ASSET VALUES Investor Class $ 12.05 $ 32.96 $ 26.58 $ 41.20 Advisor Class 11.65 32.14 25.63 40.98 A-Class 11.66 32.15 25.63 40.98 A-Class Maximum Offering Price Per Share** 12.24 33.75 26.91 43.02 C-Class 11.63 31.87 25.75 39.92
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 47 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED) - --------------------------------------------------------------------------------
REAL TELECOM- ESTATE RETAILING TECHNOLOGY MUNICATIONS FUND FUND FUND FUND - ------------------------------------------------------------------------------------------------------------------------ ASSETS Securities at Value* (Notes 1, 4 and 7) $ 42,787,420 $ 12,606,742 $ 35,713,189 $ 20,431,003 Cash in Custodian Bank -- 12 -- 20 Receivable for Securities Sold (Note 1) 9,975,258 3,219,841 -- -- Receivable for Shares Purchased 3,295,355 72,823 936,262 679,466 Investment Income Receivable (Note 1) 195,182 4,428 8,570 11,520 - ------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS 56,253,215 15,903,846 36,658,021 21,122,009 ======================================================================================================================== LIABILITIES Payable upon Return of Securities Loaned (Note 7) 2,919,459 2,309,636 4,925,840 2,947,994 Payable for Securities Purchased (Note 1) -- -- 510,746 406,942 Liability for Shares Redeemed 12,595,103 3,236,908 89,377 39,036 Investment Advisory Fee Payable (Note 2) 42,809 8,581 22,046 11,169 Transfer Agent Fee Payable (Note 2) 12,591 2,524 6,484 3,285 Distribution and Service Fee Payable (Note 2) 2,069 664 1,577 589 Portfolio Accounting Fee Payable (Note 2) 5,036 1,010 2,594 1,314 Custody Fees Payable 1,741 265 660 322 Cash Payable to Custodian Bank 816 -- 219 -- Other Liabilities 15,019 3,948 9,876 4,608 - ------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 15,594,643 5,563,536 5,569,419 3,415,259 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 40,658,572 $ 10,340,310 $ 31,088,602 $ 17,706,750 ======================================================================================================================== ANALYSIS OF NET ASSETS Paid-In Capital $ 41,076,545 $ 46,299,186 $ 109,293,584 $ 57,650,647 Undistributed Net Investment Income (Loss) 433,599 (65,497) (237,862) 969 Accumulated Net Realized Loss on Investments (5,207,478) (38,281,476) (83,700,630) (43,753,533) Net Unrealized Appreciation on Investments 4,355,906 2,388,097 5,733,510 3,808,667 - ------------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 40,658,572 $ 10,340,310 $ 31,088,602 $ 17,706,750 ======================================================================================================================== Investor Class N/A $ 4,564,215 $ 15,311,243 $ 11,558,447 Advisor Class N/A 4,679,883 14,965,692 4,801,947 A-Class $ 61,397 1,018 5,705 9,317 C-Class 913,051 1,095,194 805,962 1,337,039 H-Class 39,684,124 N/A N/A N/A SHARES OUTSTANDING Investor Class N/A 419,041 1,549,399 802,488 Advisor Class N/A 440,117 1,554,513 343,333 A-Class 2,299 96 593 666 C-Class 34,306 104,437 84,042 95,915 H-Class 1,485,722 N/A N/A N/A NET ASSET VALUES Investor Class N/A $ 10.89 $ 9.88 $ 14.40 Advisor Class N/A 10.63 9.63 13.99 A-Class $ 26.71 10.64 9.62 13.99 A-Class Maximum Offering Price Per Share** 28.04 11.17 10.10 14.69 C-Class 26.61 10.49 9.59 13.94 H-Class 26.71 N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $38,431,514, $10,218,645, $29,979,679, $16,622,336, $25,316,065 AND $41,501,859, RESPECTIVELY. ** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE. See Notes to Financial Statements. 48 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT September 30, 2004 - --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES FUND FUND - ---------------------------------------------------------------------------------- ASSETS Securities at Value* (Notes 1, 4 and 7) $ 27,826,706 $ 43,999,863 Cash in Custodian Bank 25 44 Receivable for Securities Sold (Note 1) 1,021,392 828,787 Receivable for Shares Purchased 4,517,736 2,764,920 Investment Income Receivable (Note 1) 18,084 85,711 - ---------------------------------------------------------------------------------- TOTAL ASSETS 33,383,943 47,679,325 ================================================================================== LIABILITIES Payable upon Return of Securities Loaned (Note 7) 4,253,130 8,083,540 Payable for Securities Purchased (Note 1) 585,248 373,850 Liability for Shares Redeemed 5,347,472 2,863,678 Investment Advisory Fee Payable (Note 2) 14,644 27,553 Transfer Agent Fee Payable (Note 2) 4,307 8,104 Distribution and Service Fee Payable (Note 2) 752 1,067 Portfolio Accounting Fee Payable (Note 2) 1,723 3,242 Custody Fees Payable 414 813 Cash Payable to Custodian Bank -- -- Other Liabilities 7,882 9,991 - ---------------------------------------------------------------------------------- TOTAL LIABILITIES 10,215,572 11,371,838 - ---------------------------------------------------------------------------------- NET ASSETS $ 23,168,371 $ 36,307,487 ================================================================================== ANALYSIS OF NET ASSETS Paid-In Capital $ 44,816,523 $ 46,790,273 Undistributed Net Investment Income (Loss) (125,984) 370,169 Accumulated Net Realized Loss on Investments (24,032,809) (13,350,959) Net Unrealized Appreciation on Investments 2,510,641 2,498,004 - ---------------------------------------------------------------------------------- NET ASSETS $ 23,168,371 $ 36,307,487 ================================================================================== Investor Class $ 16,721,658 $ 26,733,335 Advisor Class 5,290,788 6,743,792 A-Class 32,013 49,322 C-Class 1,123,912 2,781,038 H-Class N/A N/A SHARES OUTSTANDING Investor Class 818,907 1,252,814 Advisor Class 271,978 324,258 A-Class 1,646 2,371 C-Class 56,574 136,299 H-Class N/A N/A NET ASSET VALUES Investor Class $ 20.42 $ 21.34 Advisor Class 19.45 20.80 A-Class 19.45 20.80 A-Class Maximum Offering Price Per Share** 20.42 21.84 C-Class 19.87 20.40 H-Class N/A N/A
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 49 STATEMENTS OF OPERATIONS (UNAUDITED) - --------------------------------------------------------------------------------
BASIC BIO- CONSUMER BANKING MATERIALS TECHNOLOGY PRODUCTS FUND FUND FUND FUND - --------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (Note 1) $ 1,723 $ 2,671 $ 9,358 $ 2,323 Interest from Securities Lending, net (Note 7) 320 1,060 16,795 2,127 Dividends, Net of Foreign Tax Withheld* (Note 1) 272,299 340,758 40,981 514,248 Other Income -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total Income 274,342 344,489 67,134 518,698 - --------------------------------------------------------------------------------------------------------------------------- EXPENSES Advisory Fees (Note 2) 92,491 169,639 623,895 231,042 Transfer Agent and Administrative Fees (Note 2) 27,203 49,894 183,499 67,953 Distribution & Service Fees (Note 2): Advisor Class 17,731 17,307 36,402 49,588 A-Class 1 3 1 1 C-Class 6,129 22,472 24,349 14,298 Accounting Fees (Note 2) 10,881 19,957 73,399 27,181 Registration Fees 4,502 10,645 38,362 12,265 Trustees' Fees 238 674 2,317 923 Custodian Fees 2,781 5,413 17,089 6,454 Miscellaneous 9,850 14,799 54,194 22,253 - --------------------------------------------------------------------------------------------------------------------------- Total Expenses 171,807 310,803 1,053,507 431,958 - --------------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) 102,535 33,686 (986,373) 86,740 =========================================================================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities 1,939,543 (974,783) (10,747,906) (1,688,574) - --------------------------------------------------------------------------------------------------------------------------- Total Net Realized Gain (Loss) 1,939,543 (974,783) (10,747,906) (1,688,574) - --------------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (875,541) 2,012,025 (2,671,616) (2,489,039) - --------------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) (875,541) 2,012,025 (2,671,616) (2,489,039) - --------------------------------------------------------------------------------------------------------------------------- Net Gain (Loss) on Investments 1,064,002 1,037,242 (13,419,522) (4,177,613) - --------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 1,166,537 $ 1,070,928 $(14,405,895) $ (4,090,873) ===========================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $801, $7,232, $0, $322, $70,776, $0, $516, $0, $0, $72, AND $28,142, RESPECTIVELY. See Notes to Financial Statements. 50 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT Period Ended September 30, 2004 - --------------------------------------------------------------------------------
ENERGY FINANCIAL ELECTRONICS ENERGY SERVICES SERVICES FUND FUND FUND FUND - --------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (Note 1) $ 2,285 $ 6,954 $ 3,609 $ 2,554 Interest from Securities Lending, net (Note 7) 2,253 6,845 2,930 1,130 Dividends, Net of Foreign Tax Withheld* (Note 1) 43,320 1,161,096 116,054 441,542 Other Income 86,284 -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total Income 134,142 1,174,895 122,593 445,226 - --------------------------------------------------------------------------------------------------------------------------- EXPENSES Advisory Fees (Note 2) 169,418 520,885 248,581 182,209 Transfer Agent and Administrative Fees (Note 2) 49,829 153,202 73,112 53,591 Distribution & Service Fees (Note 2): Advisor Class 7,025 35,146 41,721 68,245 A-Class -- 1 1 1 C-Class 5,692 47,901 22,380 11,159 Accounting Fees (Note 2) 19,932 61,281 29,245 21,436 Registration Fees 12,764 24,872 15,865 12,673 Trustees' Fees 741 1,802 955 737 Custodian Fees 4,777 14,682 7,647 5,348 Miscellaneous 12,198 54,104 21,418 14,420 - --------------------------------------------------------------------------------------------------------------------------- Total Expenses 282,376 913,876 460,925 369,819 - --------------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) (148,234) 261,019 (338,332) 75,407 =========================================================================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (2,909,909) (90,079) 413,103 2,800,002 - --------------------------------------------------------------------------------------------------------------------------- Total Net Realized Gain (Loss) (2,909,909) (90,079) 413,103 2,800,002 - --------------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (9,130,790) 14,051,404 7,532,938 (4,707,160) - --------------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) (9,130,790) 14,051,404 7,532,938 (4,707,160) - --------------------------------------------------------------------------------------------------------------------------- Net Gain (Loss) on Investments (12,040,699) 13,961,325 7,946,041 (1,907,158) - --------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(12,188,933) $ 14,222,344 $ 7,607,709 $ (1,831,751) =========================================================================================================================== HEALTH PRECIOUS CARE INTERNET LEISURE METALS FUND FUND FUND FUND - --------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (Note 1) $ 3,149 $ 1,437 $ 2,118 $ 10,304 Interest from Securities Lending, net (Note 7) 4,452 1,720 3,044 50,758 Dividends, Net of Foreign Tax Withheld* (Note 1) 262,898 6,175 92,596 593,777 Other Income -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total Income 270,499 9,332 97,758 654,839 - --------------------------------------------------------------------------------------------------------------------------- EXPENSES Advisory Fees (Note 2) 246,070 101,057 147,296 660,957 Transfer Agent and Administrative Fees (Note 2) 72,374 29,723 43,322 220,319 Distribution & Service Fees (Note 2): Advisor Class 63,784 16,375 47,923 5,012 A-Class -- -- -- 9 C-Class 20,889 9,194 7,829 82,915 Accounting Fees (Note 2) 28,950 11,889 17,329 88,045 Registration Fees 15,263 6,248 9,395 47,771 Trustees' Fees 952 429 602 2,893 Custodian Fees 6,736 4,562 4,356 21,047 Miscellaneous 21,188 8,792 11,614 63,520 - --------------------------------------------------------------------------------------------------------------------------- Total Expenses 476,206 188,269 289,666 1,192,488 - --------------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) (205,707) (178,937) (191,908) (537,649) =========================================================================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (1,893,956) (2,853,987) (3,324,227) (14,880,493) - --------------------------------------------------------------------------------------------------------------------------- Total Net Realized Gain (Loss) (1,893,956) (2,853,987) (3,324,227) (14,880,493) - --------------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (1,812,352) (2,213,836) (1,207,582) (11,292,199) - --------------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) (1,812,352) (2,213,836) (1,207,582) (11,292,199) - --------------------------------------------------------------------------------------------------------------------------- Net Gain (Loss) on Investments (3,706,308) (5,067,823) (4,531,809) (26,172,692) - --------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (3,912,015) $ (5,246,760) $ (4,723,717) $(26,710,341) ===========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 51 STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED) - --------------------------------------------------------------------------------
REAL TELECOM- ESTATE RETAILING TECHNOLOGY MUNICATIONS FUND FUND FUND FUND - ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (Note 1) $ 2,345 $ 926 $ 2,163 $ 1,040 Interest from Securities Lending, net (Note 7) 286 710 1,515 1,001 Dividends, Net of Foreign Tax Withheld* (Note 1) 705,638 64,401 62,645 131,366 Other Income -- -- 7,254 -- - ----------------------------------------------------------------------------------------------------------------------- Total Income 708,269 66,037 73,577 133,407 - ----------------------------------------------------------------------------------------------------------------------- EXPENSES Advisory Fees (Note 2) 167,548 67,761 163,032 73,164 Transfer Agent and Administrative Fees (Note 2) 49,279 19,930 47,951 21,519 Distribution & Service Fees (Note 2): Advisor Class -- 16,223 45,013 7,880 A-Class 4 -- 1 -- C-Class 5,961 7,089 6,478 8,204 H-Class 47,785 -- -- -- Accounting Fees (Note 2) 19,712 7,972 19,180 8,607 Registration Fees 5,659 5,708 10,735 6,659 Trustees' Fees 462 321 657 343 Custodian Fees 5,481 2,180 5,097 2,000 Miscellaneous 20,514 4,350 13,295 4,062 - ----------------------------------------------------------------------------------------------------------------------- Total Expenses 322,405 131,534 311,439 132,438 - ----------------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) 385,864 (65,497) (237,862) 969 ======================================================================================================================= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (5,021,624) 2,873,016 (3,750,925) (773,562) - ----------------------------------------------------------------------------------------------------------------------- Total Net Realized Gain (Loss) (5,021,624) 2,873,016 (3,750,925) (773,562) - ----------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities 2,775,315 (4,735,278) (2,851,920) (1,759,138) - ----------------------------------------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) 2,775,315 (4,735,278) (2,851,920) (1,759,138) - ----------------------------------------------------------------------------------------------------------------------- Net Gain (Loss) on Investments (2,246,309) (1,862,262) (6,602,845) (2,532,700) - ----------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(1,860,445) $(1,927,759) $(6,840,707) $(2,531,731) =======================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $10,163, $52, AND $0, RESPECTIVELY. See Notes to Financial Statements. 52 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT Period Ended September 30, 2004 - --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES FUND FUND - --------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (Note 1) $ 1,535 $ 1,312 Interest from Securities Lending, net (Note 7) 1,660 1,454 Dividends, Net of Foreign Tax Withheld* (Note 1) 86,715 487,443 Other Income -- -- - --------------------------------------------------------------------------------------- Total Income 89,910 490,209 - --------------------------------------------------------------------------------------- EXPENSES Advisory Fees (Note 2) 118,587 108,287 Transfer Agent and Administrative Fees (Note 2) 34,879 31,849 Distribution & Service Fees (Note 2): Advisor Class 19,777 7,685 A-Class 1 1 C-Class 6,387 11,533 H-Class -- -- Accounting Fees (Note 2) 13,951 12,740 Registration Fees 4,293 5,108 Trustees' Fees 471 341 Custodian Fees 3,545 3,105 Miscellaneous 14,003 11,730 - --------------------------------------------------------------------------------------- Total Expenses 215,894 192,379 - --------------------------------------------------------------------------------------- Net Investment Income (Loss) (125,984) 297,830 ======================================================================================= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities (4,003,183) 922,708 - --------------------------------------------------------------------------------------- Total Net Realized Gain (Loss) (4,003,183) 922,708 - --------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities 1,870,084 (507,698) - --------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) 1,870,084 (507,698) - --------------------------------------------------------------------------------------- Net Gain (Loss) on Investments (2,133,099) 415,010 - --------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(2,259,083) $ 712,840 =======================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 53 STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
BASIC BANKING FUND MATERIALS FUND - -------------------------------------------------------------------------------------------------------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - -------------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ 102,535 $ 294,395 $ 33,686 $ 41,945 Net Realized Gain (Loss) on Investments 1,939,543 5,208,481 (974,783) 970,658 Net Change in Unrealized Appreciation (Depreciation) on Investments (875,541) 1,372,506 2,012,025 3,001,762 - -------------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations 1,166,537 6,875,382 1,070,928 4,014,365 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- (209,950) -- (49,324) Advisor Class -- (89,392) -- (31,401) A-Class -- -- -- -- C-Class -- (54,513) -- (5,139) - -------------------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- (353,855) -- (85,864) ================================================================================================================================ SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 153,277,915 263,796,205 187,982,600 473,178,311 Advisor Class 48,492,054 72,237,973 52,471,404 92,130,121 A-Class* 24,486 -- 53,622 -- C-Class 12,723,721 50,411,033 18,321,546 47,893,683 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- 203,266 -- 44,847 Advisor Class -- 88,307 -- 31,221 A-Class* -- -- -- -- C-Class -- 54,225 -- 5,100 COST OF SHARES REDEEMED Investor Class (155,762,183) (263,744,420) (182,488,499) (449,151,836) Advisor Class (36,447,069) (70,212,037) (56,180,168) (82,034,028) A-Class* -- -- -- -- C-Class (13,012,893) (49,129,264) (16,653,555) (43,555,515) ================================================================================================================================ NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 9,296,031 3,705,288 3,506,950 38,541,904 - -------------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets 10,462,568 10,226,815 4,577,878 42,470,405 NET ASSETS--BEGINNING OF PERIOD 18,045,402 7,818,587 48,542,451 6,072,046 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 28,507,970 $ 18,045,402 $ 53,120,329 $ 48,542,451 ================================================================================================================================ BIOTECHNOLOGY FUND - ------------------------------------------------------------------------------------------ PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 - ------------------------------------------------------------------------------------------ FROM OPERATIONS Net Investment Income (Loss) $ (986,373) $ (2,385,128) Net Realized Gain (Loss) on Investments (10,747,906) 37,486,079 Net Change in Unrealized Appreciation (Depreciation) on Investments (2,671,616) 16,876,861 - ------------------------------------------------------------------------------------------ Net Increase (Decrease) in Net Assets from Operations (14,405,895) 51,977,812 - ------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- - ------------------------------------------------------------------------------------------ Total Distributions to Shareholders -- -- ========================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 455,226,284 1,031,631,184 Advisor Class 38,170,686 94,623,436 A-Class* 10,050 -- C-Class 19,748,309 47,745,758 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- Advisor Class -- -- A-Class* -- -- C-Class -- -- COST OF SHARES REDEEMED Investor Class (466,338,460) (1,051,806,619) Advisor Class (27,048,191) (113,174,050) A-Class* -- -- C-Class (17,950,907) (46,052,318) ========================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 1,817,771 (37,032,609) - ------------------------------------------------------------------------------------------ Net Increase (Decrease) in Net Assets (12,588,124) 14,945,203 NET ASSETS--BEGINNING OF PERIOD 151,895,160 136,949,957 - ------------------------------------------------------------------------------------------ NET ASSETS--END OF PERIOD $ 139,307,036 $ 151,895,160 ==========================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. + UNAUDITED See Notes to Financial Statements. 54 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT - --------------------------------------------------------------------------------
CONSUMER ELECTRONICS PRODUCTS FUND FUND - ----------------------------------------------------------------------------------------------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - ----------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ 86,740 $ 13,315 $ (148,234) $ (1,012,716) Net Realized Gain (Loss) on Investments (1,688,574) 2,045,572 (2,909,909) 9,964,058 Net Change in Unrealized Appreciation (Depreciation) on Investments (2,489,039) 3,169,653 (9,130,790) 12,806,032 - ----------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (4,090,873) 5,228,540 (12,188,933) 21,757,374 - ----------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- (7,352) -- -- Advisor Class -- (33,486) -- -- A-Class -- -- -- -- C-Class -- (722) -- -- - ----------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- (41,560) -- -- ======================================================================================================================= SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 207,239,104 196,708,966 413,630,959 1,182,685,864 Advisor Class 68,548,918 70,622,826 10,626,073 118,356,865 A-Class* 21,620 -- 1,000 -- C-Class 21,832,005 36,489,048 10,175,481 59,217,693 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- 7,015 -- -- Advisor Class -- 33,452 -- -- A-Class* -- -- -- -- C-Class -- 712 -- -- COST OF SHARES REDEEMED Investor Class (220,410,895) (175,988,859) (421,559,833) (1,185,302,845) Advisor Class (67,910,888) (64,068,113) (9,904,811) (126,081,528) A-Class* -- -- -- -- C-Class (23,938,852) (32,771,945) (9,482,955) (59,966,230) ======================================================================================================================= NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (14,618,988) 31,033,102 (6,514,086) (11,090,181) - ----------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets (18,709,861) 36,220,082 (18,703,019) 10,667,193 NET ASSETS--BEGINNING OF PERIOD 41,176,226 4,956,144 50,651,556 39,984,363 - ----------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 22,466,365 $ 41,176,226 $ 31,948,537 $ 50,651,556 ======================================================================================================================= ENERGY ENERGY SERVICES FUND FUND - --------------------------------------------------------------------------------------------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - --------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ 261,019 $ (41,288) $ (338,332) $ (431,254) Net Realized Gain (Loss) on Investments (90,079) (23,811) 413,103 (7,151,198) Net Change in Unrealized Appreciation (Depreciation) on Investments 14,051,404 7,642,139 7,532,938 7,523,532 - --------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations 14,222,344 7,577,040 7,607,709 (58,920) - --------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- (65,462) -- -- Advisor Class -- (3,224) -- -- A-Class -- -- -- -- C-Class -- (8,487) -- -- - --------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- (77,173) -- -- ===================================================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 426,426,189 461,186,112 218,013,081 512,981,517 Advisor Class 60,851,605 62,110,100 55,494,580 79,146,593 A-Class* 47,747 -- 8,751 -- C-Class 37,572,207 40,063,775 23,488,362 35,220,082 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- 63,093 -- -- Advisor Class -- 2,956 -- -- A-Class* -- -- -- -- C-Class -- 7,225 -- -- COST OF SHARES REDEEMED Investor Class (376,183,128) (408,781,015) (208,411,602) (478,723,101) Advisor Class (50,670,311) (65,939,874) (62,310,393) (57,562,377) A-Class* -- -- -- -- C-Class (31,272,859) (36,159,264) (20,162,855) (33,279,811) ===================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 66,771,450 52,553,108 6,119,924 57,782,903 - --------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets 80,993,794 60,052,975 13,727,633 57,723,983 NET ASSETS--BEGINNING OF PERIOD 73,266,324 13,213,349 75,478,896 17,754,913 - --------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 154,260,118 $ 73,266,324 $ 89,206,529 $ 75,478,896 =====================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 55 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) - --------------------------------------------------------------------------------
FINANCIAL SERVICES HEALTH CARE FUND FUND - ------------------------------------------------------------------------------------------------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - ------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ 75,407 $ 281,199 $ (205,707) $ (387,621) Net Realized Gain (Loss) on Investments 2,800,002 9,599,350 (1,893,956) 5,293,825 Net Change in Unrealized Appreciation (Depreciation) on Investments (4,707,160) 4,142,729 (1,812,352) 3,382,303 - ------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (1,831,751) 14,023,278 (3,912,015) 8,288,507 - ------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- (70,122) -- -- Advisor Class -- (132,732) -- -- A-Class -- -- -- -- C-Class -- (4,995) -- -- H-Class -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- (207,849) -- -- ========================================================================================================================= SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 154,613,942 594,476,418 192,103,023 461,247,376 Advisor Class 31,566,302 92,754,854 38,047,898 109,155,775 A-Class** 21,619 -- 21,651 -- C-Class 18,489,744 32,748,098 14,545,473 59,658,401 H-Class -- -- -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- 64,634 -- -- Advisor Class -- 131,474 -- -- A-Class** -- -- -- -- C-Class -- 4,814 -- -- H-Class -- -- -- -- COST OF SHARES REDEEMED Investor Class (178,546,077) (571,461,138) (184,354,648) (457,266,075) Advisor Class (48,984,690) (75,838,329) (40,614,069) (110,591,221) A-Class** -- -- -- -- C-Class (18,231,672) (31,113,073) (13,651,718) (57,672,536) H-Class -- -- -- -- ========================================================================================================================= NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (41,070,832) 41,767,752 6,097,610 4,531,720 - ------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets (42,902,583) 55,583,181 2,185,595 12,820,227 NET ASSETS--BEGINNING OF PERIOD 77,549,751 21,966,570 49,768,476 36,948,249 - ------------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 34,647,168 $ 77,549,751 $ 51,954,071 $ 49,768,476 ========================================================================================================================= INTERNET FUND - -------------------------------------------------------------------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 - -------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ (178,937) $ (310,606) Net Realized Gain (Loss) on Investments (2,853,987) 1,363,068 Net Change in Unrealized Appreciation (Depreciation) on Investments (2,213,836) 5,188,786 - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (5,246,760) 6,241,248 - -------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- H-Class -- -- - -------------------------------------------------------------------------------------- Total Distributions to Shareholders -- -- ====================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 274,351,947 307,483,479 Advisor Class 24,551,659 52,850,390 A-Class** 11,327 -- C-Class 11,245,772 25,321,387 H-Class -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- Advisor Class -- -- A-Class** -- -- C-Class -- -- H-Class -- -- COST OF SHARES REDEEMED Investor Class (279,020,706) (300,417,421) Advisor Class (32,146,249) (42,633,764) A-Class** -- -- C-Class (10,424,986) (24,193,100) H-Class -- -- ====================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (11,431,236) 18,410,971 - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets (16,677,996) 24,652,219 NET ASSETS--BEGINNING OF PERIOD 28,938,081 4,285,862 - -------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 12,260,085 $ 28,938,081 ======================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- C-CLASS AND H-CLASS. ** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. + UNAUDITED See Notes to Financial Statements. 56 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT - --------------------------------------------------------------------------------
LEISURE PRECIOUS FUND METALS FUND - --------------------------------------------------------------------------------------------------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - --------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ (191,908) $ (109,457) $ (537,649) $ (721,423) Net Realized Gain (Loss) on Investments (3,324,227) (805,028) (14,880,493) 4,801,309 Net Change in Unrealized Appreciation (Depreciation) on Investments (1,207,582) 3,278,299 (11,292,199) 66,036,897 - --------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (4,723,717) 2,363,814 (26,710,341) 70,116,783 - --------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- (48,427) Advisor Class -- -- -- (1,106) A-Class -- -- -- -- C-Class -- -- -- (3,871) H-Class -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- -- -- (53,404) =========================================================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 130,577,962 316,109,325 714,965,235 2,222,457,741 Advisor Class 50,060,278 112,989,606 68,290,659 114,284,635 A-Class** 1,000 -- 70,294 -- C-Class 15,466,440 26,328,135 36,728,867 74,911,860 H-Class -- -- -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- 46,062 Advisor Class -- -- -- 1,084 A-Class** -- -- -- -- C-Class -- -- -- 3,010 H-Class -- -- -- -- COST OF SHARES REDEEMED Investor Class (139,609,025) (293,974,669) (702,412,733) (2,126,062,885) Advisor Class (66,163,976) (78,428,491) (65,161,648) (113,643,013) A-Class** -- -- -- -- C-Class (14,806,133) (24,356,804) (33,939,580) (62,325,519) H-Class -- -- -- -- =========================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (24,473,454) 58,667,102 18,541,094 109,672,975 - --------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets (29,197,171) 61,030,916 (8,169,247) 179,736,354 NET ASSETS--BEGINNING OF PERIOD 66,984,579 5,953,663 257,071,444 77,335,090 - --------------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 37,787,408 $ 66,984,579 $ 248,902,197 $ 257,071,444 =========================================================================================================================== REAL ESTATE RETAILING FUND FUND - -------------------------------------------------------------------------------------------------------------------------- PERIOD PERIOD PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004* 2004+ 2004 - -------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ 385,864 $ 100,970 $ (65,497) $ (356,962) Net Realized Gain (Loss) on Investments (5,021,624) (185,854) 2,873,016 2,049,891 Net Change in Unrealized Appreciation (Depreciation) on Investments 2,775,315 1,580,591 (4,735,278) 4,958,442 - -------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (1,860,445) 1,495,707 (1,927,759) 6,651,371 - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- -- -- -- ========================================================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class -- -- 134,665,956 638,371,020 Advisor Class -- -- 38,217,186 116,765,742 A-Class** 61,384 -- 1,000 -- C-Class 31,025,357 13,513,589 8,454,962 29,035,589 H-Class 544,684,403 118,721,497 -- -- VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- -- Advisor Class -- -- -- -- A-Class** -- -- -- -- C-Class -- -- -- -- H-Class -- -- -- -- COST OF SHARES REDEEMED Investor Class -- -- (140,790,283) (630,825,978) Advisor Class -- -- (48,687,803) (120,895,914) A-Class** -- -- -- -- C-Class (37,501,378) (6,081,457) (9,556,414) (27,151,949) H-Class (579,228,354) (44,171,731) -- -- ========================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (40,958,588) 81,981,898 (17,695,396) 5,298,510 - -------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets (42,819,033) 83,477,605 (19,623,155) 11,949,881 NET ASSETS--BEGINNING OF PERIOD 83,477,605 -- 29,963,465 18,013,584 - -------------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 40,658,572 $ 83,477,605 $ 10,340,310 $ 29,963,465 ==========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 57 STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED) - --------------------------------------------------------------------------------
TECHNOLOGY TELECOMMUNICATIONS FUND FUND - ------------------------------------------------------------------------------------------------------------------------- PERIOD YEAR PERIOD YEAR ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - ------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ (237,862) $ (747,504) $ 969 $ (46,317) Net Realized Gain (Loss) on Investments (3,750,925) 11,535,322 (773,562) 69,736 Net Change in Unrealized Appreciation (Depreciation) on Investments (2,851,920) 6,235,635 (1,759,138) 4,287,270 - ------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (6,840,707) 17,023,453 (2,531,731) 4,310,689 - ------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- -- (26,174) Advisor Class -- -- -- (11,281) A-Class -- -- -- -- C-Class -- -- -- (4,468) - ------------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- -- -- (41,923) ========================================================================================================================= SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 262,234,635 633,656,147 112,757,592 389,067,784 Advisor Class 24,184,593 92,267,160 9,662,808 32,832,108 A-Class* 5,762 -- 9,263 -- C-Class 37,853,514 252,095,654 9,782,840 41,389,566 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- -- 25,451 Advisor Class -- -- -- 11,021 A-Class* -- -- -- -- C-Class -- -- -- 3,392 COST OF SHARES REDEEMED Investor Class (260,633,430) (631,881,342) (113,908,856) (386,492,605) Advisor Class (24,093,030) (99,609,652) (11,656,435) (27,160,685) A-Class* -- -- -- -- C-Class (37,809,880) (252,863,523) (11,825,280) (39,352,247) ========================================================================================================================= NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 1,742,164 (6,335,556) (5,178,068) 10,323,785 - ------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets (5,098,543) 10,687,897 (7,709,799) 14,592,551 NET ASSETS--BEGINNING OF PERIOD 36,187,145 25,499,248 25,416,549 10,823,998 - ------------------------------------------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 31,088,602 $ 36,187,145 $ 17,706,750 $ 25,416,549 ========================================================================================================================= TRANSPORTATION FUND - -------------------------------------------------------------------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 - -------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ (125,984) $ (63,343) Net Realized Gain (Loss) on Investments (4,003,183) 593,120 Net Change in Unrealized Appreciation (Depreciation) on Investments 1,870,084 496,983 - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (2,259,083) 1,026,760 - -------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- -- Advisor Class -- -- A-Class -- -- C-Class -- -- - -------------------------------------------------------------------------------------- Total Distributions to Shareholders -- -- ====================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 162,075,194 145,359,648 Advisor Class 49,694,103 61,633,336 A-Class* 31,942 -- C-Class 9,822,312 14,099,458 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- -- Advisor Class -- -- A-Class* -- -- C-Class -- -- COST OF SHARES REDEEMED Investor Class (147,067,492) (142,810,388) Advisor Class (48,555,346) (61,674,390) A-Class* -- -- C-Class (9,305,459) (13,937,471) ====================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 16,695,254 2,670,193 - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets 14,436,171 3,696,953 NET ASSETS--BEGINNING OF PERIOD 8,732,200 5,035,247 - -------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 23,168,371 $ 8,732,200 ======================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. + UNAUDITED See Notes to Financial Statements. 58 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT - --------------------------------------------------------------------------------
UTILITIES FUND - -------------------------------------------------------------------------------------- PERIOD YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 2004+ 2004 - -------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Income (Loss) $ 297,830 $ 583,712 Net Realized Gain (Loss) on Investments 922,708 3,826,082 Net Change in Unrealized Appreciation (Depreciation) on Investments (507,698) 1,455,557 - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations 712,840 5,865,351 - -------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income Investor Class -- (535,780) Advisor Class -- (76,028) A-Class -- -- C-Class -- (69,982) - -------------------------------------------------------------------------------------- Total Distributions to Shareholders -- (681,790) ====================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED Investor Class 152,421,455 362,548,312 Advisor Class 36,679,152 94,834,457 A-Class* 49,118 -- C-Class 14,293,028 46,841,485 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT Investor Class -- 437,425 Advisor Class -- 75,949 A-Class* -- -- C-Class -- 65,998 COST OF SHARES REDEEMED Investor Class (145,383,322) (356,854,893) Advisor Class (31,142,377) (97,729,716) A-Class* -- -- C-Class (15,511,493) (44,369,736) ====================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 11,405,561 5,849,281 - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets 12,118,401 11,032,842 NET ASSETS--BEGINNING OF PERIOD 24,189,086 13,156,244 - -------------------------------------------------------------------------------------- NET ASSETS--END OF PERIOD $ 36,307,487 $ 24,189,086 ======================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 59 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ BANKING FUND INVESTOR CLASS SEPTEMBER 30,2004+++ $ 10.25 $ .06 $ .23 $ .29 $ -- $ -- March 31, 2004 7.30 .14 2.89 3.03 (.08) -- March 31, 2003 8.63 .12 (1.24) (1.12) (.21) -- March 31, 2002 8.27 .12 .53 .65 (.29) -- March 31, 2001 7.31 .14 .82 .96 -- -- March 31, 2000 8.77 .07 (1.53) (1.46) -- -- BANKING FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 9.85 .03 .23 .26 -- -- March 31, 2004 7.06 .09 2.78 2.87 (.08) -- March 31, 2003 8.41 .07 (1.21) (1.14) (.21) -- March 31, 2002 8.13 .08 .49 .57 (.29) -- March 31, 2001 7.24 .13 .76 .89 -- -- March 31, 2000 8.74 .01 (1.51) (1.50) -- -- BANKING FUND A-CLASS SEPTEMBER 30,2004*+++ 10.06 -- .05 .05 -- -- BANKING FUND C-CLASS SEPTEMBER 30, 2004+++ 9.87 .02 .20 .22 -- -- March 31, 2004 7.12 .04 2.79 2.83 (.08) -- March 31, 2003 8.54 .02 (1.23) (1.21) (.21) -- March 31, 2002 8.27 .03 .53 .56 (.29) -- March 31, 2001 * 8.27 -- -- -- -- -- BASIC MATERIALS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 25.46 .05 2.21 2.26 -- -- March 31, 2004 17.22 .05 8.32 8.37 (.13) -- March 31, 2003 ++ 24.30 .12 (7.17) (7.05) (.03) -- March 31, 2002 ++ 21.03 .27 3.27 3.54 (.27) -- March 31, 2001 ++ 23.91 .18 (3.06) (2.88) -- -- March 31, 2000 ++ 23.25 .60 .06 .66 -- -- BASIC MATERIALS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 24.85 (.02) 2.16 2.14 -- -- March 31, 2004 16.89 .02 8.07 8.09 (.13) -- March 31, 2003 ++ 23.91 (.06) (6.93) (6.99) (.03) -- March 31, 2002 ++ 20.79 .15 3.24 3.39 (.27) -- March 31, 2001 ++ 23.79 .15 (3.15) (3.00) -- -- March 31, 2000 ++ 23.16 (.03) .66 .63 -- -- BASIC MATERIALS FUND A-CLASS SEPTEMBER 30,2004*+++ 25.80 -- 1.20 1.20 -- -- BASIC MATERIALS FUND C-CLASS SEPTEMBER 30, 2004+++ 24.68 (.07) 2.13 2.06 -- -- March 31, 2004 16.86 (.14) 8.09 7.95 (.13) -- March 31, 2003 ++ 24.03 (.06) (7.08) (7.14) (.03) -- March 31, 2002 *++ 23.13 (.03) 1.20 1.17 (.27) -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ BANKING FUND INVESTOR CLASS SEPTEMBER 30,2004+++ $ -- $ .29 $ 10.54 2.83% March 31, 2004 (.08) 2.95 10.25 41.53% March 31, 2003 (.21) (1.33) 7.30 (13.15)% March 31, 2002 (.29) .36 8.63 8.30% March 31, 2001 -- .96 8.27 13.13% March 31, 2000 -- (1.46) 7.31 (16.65)% BANKING FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- .26 10.11 2.64% March 31, 2004 (.08) 2.79 9.85 40.67% March 31, 2003 (.21) (1.35) 7.06 (13.73)% March 31, 2002 (.29) .28 8.41 7.44% March 31, 2001 -- .89 8.13 12.29% March 31, 2000 -- (1.50) 7.24 (17.16)% BANKING FUND A-CLASS SEPTEMBER 30,2004*+++ -- .05 10.11 0.50% BANKING FUND C-CLASS SEPTEMBER 30, 2004+++ -- .22 10.09 2.23% March 31, 2004 (.08) 2.75 9.87 39.76% March 31, 2003 (.21) (1.42) 7.12 (14.35)% March 31, 2002 (.29) .27 8.54 7.19% March 31, 2001 * -- -- 8.27 0.00% BASIC MATERIALS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ -- 2.26 27.72 8.88% March 31, 2004 (.13) 8.24 25.46 48.70% March 31, 2003 ++ (.03) (7.08) 17.22 (29.02)% March 31, 2002 ++ (.27) 3.27 24.30 16.89% March 31, 2001 ++ -- (2.88) 21.03 (12.05)% March 31, 2000 ++ -- .66 23.91 2.84% BASIC MATERIALS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- 2.14 26.99 8.61% March 31, 2004 (.13) 7.96 24.85 47.99% March 31, 2003 ++ (.03) (7.02) 16.89 (29.24)% March 31, 2002 ++ (.27) 3.12 23.91 16.36% March 31, 2001 ++ -- (3.00) 20.79 (12.61)% March 31, 2000 ++ -- .63 23.79 2.72% BASIC MATERIALS FUND A-CLASS SEPTEMBER 30,2004*+++ -- 1.20 27.00 4.65% BASIC MATERIALS FUND C-CLASS SEPTEMBER 30, 2004+++ -- 2.06 26.74 8.35% March 31, 2004 (.13) 7.82 24.68 47.25% March 31, 2003 ++ (.03) (7.17) 16.86 (29.72)% March 31, 2002 *++ (.27) .90 24.03 5.10% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - --------------------------------------------------------------------------------------------------------------------- BANKING FUND INVESTOR CLASS SEPTEMBER 30,2004+++ 1.36%** 1.36%** 1.17%** 823% $10,962 March 31, 2004 1.36% 1.36% 1.51% 1,435% 12,504 March 31, 2003 1.38% 1.38% 1.52% 1,495% 7,352 March 31, 2002 1.50% 1.50% 1.49% 1,292% 28,992 March 31, 2001 1.30% 1.29% 1.77% 1,394% 38,508 March 31, 2000 1.58% 1.57% 0.87% 3,829% 39,546 BANKING FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.86%** 1.86%** 0.60%** 823% 15,915 March 31, 2004 1.86% 1.86% 1.04% 1,435% 3,712 March 31, 2003 1.89% 1.89% 0.91% 1,495% 390 March 31, 2002 1.91% 1.91% 0.95% 1,292% 23,281 March 31, 2001 1.73% 1.73% 1.68% 1,394% 20,378 March 31, 2000 2.06% 2.05% 0.07% 3,829% 17,872 BANKING FUND A-CLASS SEPTEMBER 30,2004*+++ 1.63%** 1.63%** (0.32)%** 823% 25 BANKING FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** 0.39%** 823% 1,607 March 31, 2004 2.37% 2.37% 0.41% 1,435% 1,829 March 31, 2003 2.38% 2.38% 0.23% 1,495% 76 March 31, 2002 2.40% 2.40% 0.42% 1,292% 15 March 31, 2001 * 0.00%**@ 0.00%**@ 0.00%** 1,394% 14 BASIC MATERIALS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.35%** 1.35%** 0.36%** 487% 36,044 March 31, 2004 1.38% 1.38% 0.20% 1,669% 29,749 March 31, 2003 ++ 1.39% 1.39% 0.53% 1,943% 3,360 March 31, 2002 ++ 1.41% 1.41% 1.12% 1,523% 45,716 March 31, 2001 ++ 1.52% 1.52% 0.79% 2,600% 16,593 March 31, 2000 ++ 1.54% 1.53% 2.21% 3,641% 16,851 BASIC MATERIALS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (0.14)%** 487% 9,729 March 31, 2004 1.87% 1.87% 0.09% 1,669% 13,483 March 31, 2003 ++ 1.89% 1.89% (0.23)% 1,943% 2,419 March 31, 2002 ++ 2.00% 2.00% 0.65% 1,523% 30,839 March 31, 2001 ++ 2.08% 2.07% 0.71% 2,600% 238 March 31, 2000 ++ 2.01% 2.00% (0.10)% 3,641% 5,082 BASIC MATERIALS FUND A-CLASS SEPTEMBER 30,2004*+++ 1.61%** 1.61%** (0.16)%** 487% 55 BASIC MATERIALS FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (0.58)%** 487% 7,292 March 31, 2004 2.38% 2.38% (0.62)% 1,669% 5,311 March 31, 2003 ++ 2.39% 2.39% (0.23)% 1,943% 294 March 31, 2002 *++ 2.60%** 2.60%** (0.13)%** 1,523% 525
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001-- BANKING FUND C-CLASS; MAY 3, 2001--BASIC MATERIALS FUND C-CLASS; SEPTEMBER 1, 2004 -- BANKING FUND A-CLASS AND BASIC MATERIALS FUND A-CLASS. ** 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 YEARS ENDED MARCH 31, 2000 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED @ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE DAY AND NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. See Notes to Financial Statements. 60 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ BIOTECHNOLOGY FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ 20.56 $ (.12) $ (1.33) $ (1.45) $ -- $ -- March 31, 2004 13.75 (.24) 7.05 6.81 -- -- March 31, 2003 20.86 (.19) (6.92) (7.11) -- -- March 31, 2002 21.66 (.28) (.52) (.80) -- -- March 31, 2001 28.88 (.35) (6.87) (7.22) -- -- March 31, 2000 12.81 (.34) 16.45 16.11 -- (.04) BIOTECHNOLOGY FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 19.86 (.16) (1.28) (1.44) -- -- March 31, 2004 13.35 (.32) 6.83 6.51 -- -- March 31, 2003 20.36 (.25) (6.76) (7.01) -- -- March 31, 2002 21.25 (.40) (.49) (.89) -- -- March 31, 2001 28.46 (.49) (6.72) (7.21) -- -- March 31, 2000 12.66 (.44) 16.28 15.84 -- (.04) BIOTECHNOLOGY FUND A-CLASS SEPTEMBER 30, 2004*+++ 17.89 (.02) .56 .54 -- -- BIOTECHNOLOGY FUND C-CLASS SEPTEMBER 30, 2004+++ 19.92 (.21) (1.28) (1.49) -- -- March 31, 2004 13.47 (.43) 6.88 6.45 -- -- March 31, 2003 20.66 (.33) (6.86) (7.19) -- -- March 31, 2002 21.66 (.54) (.46) (1.00) -- -- March 31, 2001 * 21.66 -- -- -- -- -- CONSUMER PRODUCTS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 28.68 .08 (1.44) (1.36) -- -- March 31, 2004 20.85 .14 7.74 7.88 (.05) -- March 31, 2003 ++ 25.08 .12 (4.23) (4.11) (.12) -- March 31, 2002 ++ 21.54 .12 3.48 3.60 (.06) -- March 31, 2001 ++ 22.68 .21 (1.35) (1.14) -- -- March 31, 2000 ++ 29.13 .12 (5.52) (5.40) -- (1.05) CONSUMER PRODUCTS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 27.99 -- (1.39) (1.39) -- -- March 31, 2004 20.46 (.04) 7.62 7.58 (.05) -- March 31, 2003 ++ 24.69 (.03) (4.08) (4.11) (.12) -- March 31, 2002 ++ 21.24 .03 3.48 3.51 (.06) -- March 31, 2001 ++ 22.50 -- (1.26) (1.26) -- -- March 31, 2000 ++ 29.10 (.24) (5.31) (5.55) -- (1.05) CONSUMER PRODUCTS FUND A-CLASS SEPTEMBER 30, 2004*+++ 27.42 (.82) -- (.82) -- -- CONSUMER PRODUCTS FUND C-CLASS SEPTEMBER 30, 2004+++ 27.92 (.07) (1.38) (1.45) -- -- March 31, 2004 20.52 (.20) 7.65 7.45 (.05) -- March 31, 2003 ++ 24.93 (.09) (4.20) (4.29) (.12) -- March 31, 2002 *++ 21.81 (.03) 3.21 3.18 (.06) -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ BIOTECHNOLOGY FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ -- $ (1.45) $ 19.11 (7.05)% March 31, 2004 -- 6.81 20.56 49.53% March 31, 2003 -- (7.11) 13.75 (34.08)% March 31, 2002 -- (.80) 20.86 (3.69)% March 31, 2001 -- (7.22) 21.66 (25.00)% March 31, 2000 (.04) 16.07 28.88 125.98% BIOTECHNOLOGY FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (1.44) 18.42 (7.25)% March 31, 2004 -- 6.51 19.86 48.76% March 31, 2003 -- (7.01) 13.35 (34.43)% March 31, 2002 -- (.89) 20.36 (4.19)% March 31, 2001 -- (7.21) 21.25 (25.33)% March 31, 2000 (.04) 15.80 28.46 125.34% BIOTECHNOLOGY FUND A-CLASS SEPTEMBER 30, 2004*+++ -- .54 18.43 3.02% BIOTECHNOLOGY FUND C-CLASS SEPTEMBER 30, 2004+++ -- (1.49) 18.43 (7.48)% March 31, 2004 -- 6.45 19.92 47.88% March 31, 2003 -- (7.19) 13.47 (34.80)% March 31, 2002 -- (1.00) 20.66 (4.62)% March 31, 2001 * -- -- 21.66 0.00% CONSUMER PRODUCTS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ -- (1.36) 27.32 (4.74)% March 31, 2004 (.05) 7.83 28.68 37.84% March 31, 2003 ++ (.12) (4.23) 20.85 (16.38)% March 31, 2002 ++ (.06) 3.54 25.08 16.71% March 31, 2001 ++ -- (1.14) 21.54 (5.03)% March 31, 2000 ++ (1.05) (6.45) 22.68 (19.20)% CONSUMER PRODUCTS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (1.39) 26.60 (4.97)% March 31, 2004 (.05) 7.53 27.99 37.10% March 31, 2003 ++ (.12) (4.23) 20.46 (16.64)% March 31, 2002 ++ (.06) 3.45 24.69 16.52% March 31, 2001 ++ -- (1.26) 21.24 (5.60)% March 31, 2000 ++ (1.05) (6.60) 22.50 (19.76)% CONSUMER PRODUCTS FUND A-CLASS SEPTEMBER 30, 2004*+++ -- (.82) 26.60 (2.99)% CONSUMER PRODUCTS FUND C-CLASS SEPTEMBER 30, 2004+++ -- (1.45) 26.47 (5.19)% March 31, 2004 (.05) 7.40 27.92 36.36% March 31, 2003 ++ (.12) (4.41) 20.52 (17.20)% March 31, 2002 *++ (.06) 3.12 24.93 14.57% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------- BIOTECHNOLOGY FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.35%** 1.35%** (1.26)%** 262% $113,659 March 31, 2004 1.35% 1.35% (1.31)% 548% 135,619 March 31, 2003 1.38% 1.38% (1.31)% 477% 111,003 March 31, 2002 1.23% 1.23% (1.20)% 390% 218,263 March 31, 2001 1.24% 1.23% (1.17)% 305% 283,407 March 31, 2000 1.42% 1.41% (1.29)% 699% 456,303 BIOTECHNOLOGY FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (1.76)%** 262% 21,125 March 31, 2004 1.84% 1.84% (1.79)% 548% 12,708 March 31, 2003 1.88% 1.88% (1.82)% 477% 24,280 March 31, 2002 1.72% 1.72% (1.69)% 390% 20,931 March 31, 2001 1.74% 1.73% (1.68)% 305% 25,739 March 31, 2000 1.93% 1.92% (1.96)% 699% 45,757 BIOTECHNOLOGY FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.58%** 1.58%** (1.60)%** 262% 10 BIOTECHNOLOGY FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (2.24)%** 262% 4,513 March 31, 2004 2.36% 2.36% (2.32)% 548% 3,567 March 31, 2003 2.38% 2.38% (2.30)% 477% 1,667 March 31, 2002 2.38% 2.38% (2.36)% 390% 967 March 31, 2001 * 0.00%**@ 0.00%**@ 0.00%** 305% 3 CONSUMER PRODUCTS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.35%** 1.35%** 0.58%** 512% 7,955 March 31, 2004 1.36% 1.36% 0.56% 914% 23,560 March 31, 2003 ++ 1.39% 1.39% 0.53% 1,205% 1,640 March 31, 2002 ++ 1.56% 1.56% 0.53% 890% 20,083 March 31, 2001 ++ 1.23% 1.22% 0.94% 1,907% 8,503 March 31, 2000 ++ 1.37% 1.36% 0.49% 5,466% 9,181 CONSUMER PRODUCTS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.85%** 1.85%** 0.02%** 512% 12,454 March 31, 2004 1.86% 1.86% (0.18)% 914% 13,357 March 31, 2003 ++ 1.89% 1.89% (0.09)% 1,205% 3,120 March 31, 2002 ++ 2.02% 2.02% 0.18% 890% 33,201 March 31, 2001 ++ 1.85% 1.84% 0.02% 1,907% 18,104 March 31, 2000 ++ 2.13% 2.13% (1.01)% 5,466% 3,135 CONSUMER PRODUCTS FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.60%** 1.60%** (0.25)%** 512% 22 CONSUMER PRODUCTS FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (0.50)%** 512% 2,036 March 31, 2004 2.37% 2.37% (0.79)% 914% 4,259 March 31, 2003 ++ 2.39% 2.39% (0.35)% 1,205% 196 March 31, 2002 *++ 2.57%** 2.57%** (0.19)%** 890% 501
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001 -- BIOTECHNOLOGY FUND C-CLASS; JULY 24, 2001 -- CONSUMER PRODUCTS FUND C-CLASS; SEPTEMBER 1, 2004 -- BIOTECHNOLOGY FUND A-CLASS AND CONSUMER PRODUCTS FUND A-CLASS. ** 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 YEARS ENDED MARCH 31, 2000 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED @ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 61 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ ELECTRONICS FUND INVESTOR CLASS SEPTEMBER 30, 2004++ $ 13.43 $ (.04) $ (3.64) $ (3.68) $ -- $ -- March 31, 2004 8.08 (.15) 5.50 5.35 -- -- March 31, 2003 16.96 (.12) (8.76) (8.88) -- -- March 31, 2002 16.54 (.18) .60 .42 -- -- March 31, 2001 40.10 (.36) (23.02) (23.38) -- (.18) March 31, 2000 14.02 (.30) 26.38 26.08 -- -- ELECTRONICS FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 13.02 (.07) (3.52) (3.59) -- -- March 31, 2004 7.87 (.21) 5.36 5.15 -- -- March 31, 2003 16.62 (.16) (8.59) (8.75) -- -- March 31, 2002 16.28 (.26) .60 .34 -- -- March 31, 2001 39.66 (.58) (22.62) (23.20) -- (.18) March 31, 2000 13.96 (.35) 26.05 25.70 -- -- ELECTRONICS FUND A-CLASS SEPTEMBER 30, 2004*++ 9.22 (.01) .22 .21 -- -- ELECTRONICS FUND C-CLASS SEPTEMBER 30, 2004++ 13.00 (.10) (3.50) (3.60) -- -- March 31, 2004 7.91 (.27) 5.36 5.09 -- -- March 31, 2003 16.82 (.22) (8.69) (8.91) -- -- March 31, 2002 16.54 (.37) .65 .28 -- -- March 31, 2001 * 18.72 (.01) (2.17) (2.18) -- -- ENERGY FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 11.94 .04 2.15 2.19 -- -- March 31, 2004 8.80 -- 3.17 3.17 (.03) -- March 31, 2003 11.26 .02 (2.47) (2.45) (.01) -- March 31, 2002 11.43 .12 (.19) (.07) (.10) -- March 31, 2001 10.87 (.08) .64 .56 -- -- March 31, 2000 8.99 .08 1.80 1.88 -- -- ENERGY FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 11.68 -- 2.11 2.11 -- -- March 31, 2004 8.63 (.03) 3.11 3.08 (.03) -- March 31, 2003 11.09 -- (2.45) (2.45) (.01) -- March 31, 2002 11.33 .05 (.19) (.14) (.10) -- March 31, 2001 10.84 (.03) .52 .49 -- -- March 31, 2000 9.01 .15 1.68 1.83 -- -- ENERGY FUND A-CLASS SEPTEMBER 30, 2004*++ 12.79 -- 1.00 1.00 -- -- ENERGY FUND C-CLASS SEPTEMBER 30, 2004++ 11.60 (.03) 2.09 2.06 -- -- March 31, 2004 8.63 (.12) 3.12 3.00 (.03) -- March 31, 2003 11.14 (.07) (2.43) (2.50) (.01) -- March 31, 2002 * 11.87 (.09) (.54) (.63) (.10) -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ ELECTRONICS FUND INVESTOR CLASS SEPTEMBER 30, 2004++ $ -- $ (3.68) $ 9.75 (27.40)% March 31, 2004 -- 5.35 13.43 66.21% March 31, 2003 -- (8.88) 8.08 (52.36)% March 31, 2002 -- .42 16.96 2.54% March 31, 2001 (.18) (23.56) 16.54 (58.48)% March 31, 2000 -- 26.08 40.10 186.02% ELECTRONICS FUND ADVISOR CLASS SEPTEMBER 30, 2004++ -- (3.59) 9.43 (27.57)% March 31, 2004 -- 5.15 13.02 65.44% March 31, 2003 -- (8.75) 7.87 (52.65)% March 31, 2002 -- .34 16.62 2.09% March 31, 2001 (.18) (23.38) 16.28 (58.68)% March 31, 2000 -- 25.70 39.66 184.10% ELECTRONICS FUND A-CLASS SEPTEMBER 30, 2004*++ -- .21 9.43 2.28% ELECTRONICS FUND C-CLASS SEPTEMBER 30, 2004++ -- (3.60) 9.40 (27.69)% March 31, 2004 -- 5.09 13.00 64.35% March 31, 2003 -- (8.91) 7.91 (52.97)% March 31, 2002 -- .28 16.82 1.69% March 31, 2001 * -- (2.18) 16.54 (11.65)% ENERGY FUND INVESTOR CLASS SEPTEMBER 30, 2004++ -- 2.19 14.13 18.34% March 31, 2004 (.03) 3.14 11.94 36.12% March 31, 2003 (.01) (2.46) 8.80 (21.79)% March 31, 2002 (.10) (.17) 11.26 (0.52)% March 31, 2001 -- .56 11.43 5.15% March 31, 2000 -- 1.88 10.87 20.91% ENERGY FUND ADVISOR CLASS SEPTEMBER 30, 2004++ -- 2.11 13.79 18.07% March 31, 2004 (.03) 3.05 11.68 35.79% March 31, 2003 (.01) (2.46) 8.63 (22.13)% March 31, 2002 (.10) (.24) 11.09 (1.14)% March 31, 2001 -- .49 11.33 4.52% March 31, 2000 -- 1.83 10.84 20.31% ENERGY FUND A-CLASS SEPTEMBER 30, 2004*++ -- 1.00 13.79 7.82% ENERGY FUND C-CLASS SEPTEMBER 30, 2004++ -- 2.06 13.66 17.76% March 31, 2004 (.03) 2.97 11.60 34.86% March 31, 2003 (.01) (2.51) 8.63 (22.48)% March 31, 2002 * (.10) (.73) 11.14 (5.22)% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------- ELECTRONICS FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 1.35%** 1.35%** (0.67)%** 662% $27,667 March 31, 2004 1.36% 1.36% (1.20)% 1,359% 46,200 March 31, 2003 1.39% 1.39% (1.20)% 2,413% 31,655 March 31, 2002 1.29% 1.29% (1.08)% 1,279% 96,671 March 31, 2001 1.36% 1.35% (1.09)% 705% 70,131 March 31, 2000 1.29% 1.28% (1.14)% 1,162% 274,554 ELECTRONICS FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 1.85%** 1.85%** (1.27)%** 662% 2,982 March 31, 2004 1.85% 1.85% (1.70)% 1,359% 3,341 March 31, 2003 1.87% 1.87% (1.72)% 2,413% 7,389 March 31, 2002 1.75% 1.75% (1.50)% 1,279% 9,528 March 31, 2001 1.87% 1.86% (1.74)% 705% 7,325 March 31, 2000 1.76% 1.75% (1.51)% 1,162% 25,034 ELECTRONICS FUND A-CLASS SEPTEMBER 30, 2004*++ 1.73%** 1.73%** (1.72)%** 662% 1 ELECTRONICS FUND C-CLASS SEPTEMBER 30, 2004++ 2.35%** 2.35%** (1.80)%** 662% 1,299 March 31, 2004 2.36% 2.36% (2.20)% 1,359% 1,111 March 31, 2003 2.39% 2.39% (2.21)% 2,413% 940 March 31, 2002 2.49% 2.49% (2.27)% 1,279% 388 March 31, 2001 * 2.11%** 1.82%** (1.76)%** 705% 2 ENERGY FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 1.35%** 1.35%** 0.56%** 301% 123,177 March 31, 2004 1.36% 1.36% 0.04% 913% 61,800 March 31, 2003 1.39% 1.39% 0.24% 1,362% 4,703 March 31, 2002 1.32% 1.32% 1.06% 1,502% 31,769 March 31, 2001 1.64% 1.63% (0.70)% 1,707% 15,715 March 31, 2000 1.58% 1.57% 0.83% 2,854% 13,980 ENERGY FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 1.84%** 1.84%** 0.06%** 301% 16,762 March 31, 2004 1.92% 1.92% (0.25)% 913% 4,895 March 31, 2003 1.88% 1.88% (0.03)% 1,362% 7,039 March 31, 2002 1.80% 1.80% 0.42% 1,502% 9,621 March 31, 2001 2.11% 2.11% (0.26)% 1,707% 4,269 March 31, 2000 2.06% 2.05% 1.45% 2,854% 4,432 ENERGY FUND A-CLASS SEPTEMBER 30, 2004*++ 1.57%** 1.57%** (0.31)%** 301% 48 ENERGY FUND C-CLASS SEPTEMBER 30, 2004++ 2.35%** 2.35%** (0.43)%** 301% 14,273 March 31, 2004 2.36% 2.36% (1.08)% 913% 6,571 March 31, 2003 2.38% 2.38% (0.81)% 1,362% 1,471 March 31, 2002 * 2.51%** 2.51%** (0.92)%** 1,502% 392
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001 -- ELECTRONICS FUND C-CLASS; APRIL 19, 2001 -- ENERGY FUND C-CLASS; SEPTEMBER 1, 2004 -- ELECTRONICS FUND A-CLASS AND ENERGY FUND A-CLASS. ** 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. ++ UNAUDITED See Notes to Financial Statements. 62 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ ENERGY SERVICES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ 21.74 $ (.11) $ 4.16 $ 4.05 $ -- $ -- March 31, 2004 17.37 (.18) 4.55 4.37 -- -- March 31, 2003 ++ 22.47 (.15) (4.95) (5.10) -- -- March 31, 2002 ++ 27.30 (.18) (4.65) (4.83) -- -- March 31, 2001 ++ 27.93 (.12) (.51) (.63) -- -- March 31, 2000 ++ 18.06 (.18) 10.05 9.87 -- -- ENERGY SERVICES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 21.18 (.16) 4.05 3.89 -- -- March 31, 2004 17.01 (.27) 4.44 4.17 -- -- March 31, 2003 ++ 22.08 (.24) (4.83) (5.07) -- -- March 31, 2002 ++ 26.97 (.27) (4.62) (4.89) -- -- March 31, 2001 ++ 27.69 (.33) (.39) (.72) -- -- March 31, 2000 ++ 18.03 (.33) 9.99 9.66 -- -- ENERGY SERVICES FUND A-CLASS SEPTEMBER 30, 2004*+++ 23.18 (.03) 1.93 1.90 -- -- ENERGY SERVICES FUND C-CLASS SEPTEMBER 30, 2004+++ 21.12 (.21) 4.03 3.82 -- -- March 31, 2004 17.04 (.35) 4.43 4.08 -- -- March 31, 2003 ++ 22.23 (.30) (4.89) (5.19) -- -- March 31, 2002 ++ 27.30 (.30) (4.77) (5.07) -- -- March 31,2001 *++ 27.30 -- -- -- -- -- FINANCIAL SERVICES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 11.09 .04 (.03) .01 -- -- March 31, 2004 7.66 .09 3.38 3.47 (.04) -- March 31, 2003 10.23 .07 (2.62) (2.55) (.02) -- March 31, 2002 10.00 .04 .29 .33 (.10) -- March 31, 2001 9.48 .06 .46 .52 -- -- March 31, 2000 9.99 (.01) (.49) (.50) -- (.01) FINANCIAL SERVICES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 10.89 .01 (.04) (.03) -- -- March 31, 2004 7.57 .04 3.32 3.36 (.04) -- March 31, 2003 10.08 .03 (2.52) (2.49) (.02) -- March 31, 2002 9.89 (.01) .30 .29 (.10) -- March 31, 2001 9.42 .01 .46 .47 -- -- March 31, 2000 9.95 (.05) (.47) (.52) -- (.01) FINANCIAL SERVICES FUND A-CLASS SEPTEMBER 30, 2004*+++ 10.75 .01 .11 .12 -- -- FINANCIAL SERVICES FUND C-CLASS SEPTEMBER 30, 2004+++ 10.84 (.02) (.04) (.06) -- -- March 31, 2004 7.57 (.02) 3.33 3.31 (.04) -- March 31, 2003 10.14 (.02) (2.53) (2.55) (.02) -- March 31, 2002 * 10.46 (.05) (.17) (.22) (.10) -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ ENERGY SERVICES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ -- $ 4.05 $ 25.79 18.63% March 31, 2004 -- 4.37 21.74 25.16% March 31, 2003 ++ -- (5.10) 17.37 (22.70)% March 31, 2002 ++ -- (4.83) 22.47 (17.69)% March 31, 2001 ++ -- (.63) 27.30 (2.26)% March 31, 2000 ++ -- 9.87 27.93 54.65% ENERGY SERVICES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- 3.89 25.07 18.37% March 31, 2004 -- 4.17 21.18 24.51% March 31, 2003 ++ -- (5.07) 17.01 (22.96)% March 31, 2002 ++ -- (4.89) 22.08 (18.13)% March 31, 2001 ++ -- (.72) 26.97 (2.60)% March 31, 2000 ++ -- 9.66 27.69 53.58% ENERGY SERVICES FUND A-CLASS SEPTEMBER 30, 2004*+++ -- 1.90 25.08 8.20% ENERGY SERVICES FUND C-CLASS SEPTEMBER 30, 2004+++ -- 3.82 24.94 18.09% March 31, 2004 -- 4.08 21.12 23.94% March 31, 2003 ++ -- (5.19) 17.04 (23.35)% March 31, 2002 ++ -- (5.07) 22.23 (18.57)% March 31,2001 *++ -- -- 27.30 0.00% FINANCIAL SERVICES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ -- .01 11.10 0.09% March 31, 2004 (.04) 3.43 11.09 45.36% March 31, 2003 (.02) (2.57) 7.66 (24.97)% March 31, 2002 (.10) .23 10.23 3.39% March 31, 2001 -- .52 10.00 5.49% March 31, 2000 (.01) (.51) 9.48 (4.97)% FINANCIAL SERVICES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (.03) 10.86 (0.28)% March 31, 2004 (.04) 3.32 10.89 44.45% March 31, 2003 (.02) (2.51) 7.57 (24.74)% March 31, 2002 (.10) .19 10.08 3.02% March 31, 2001 -- .47 9.89 4.99% March 31, 2000 (.01) (.53) 9.42 (5.19)% FINANCIAL SERVICES FUND A-CLASS SEPTEMBER 30, 2004*+++ -- .12 10.87 1.12% FINANCIAL SERVICES FUND C-CLASS SEPTEMBER 30, 2004+++ -- (.06) 10.78 (0.55)% March 31, 2004 (.04) 3.27 10.84 43.78% March 31, 2003 (.02) (2.57) 7.57 (25.19)% March 31, 2002 * (.10) (.32) 10.14 (2.02)% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------- ENERGY SERVICES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.35%** 1.35%** (0.95)%** 303% $62,627 March 31, 2004 1.37% 1.37% (0.96)% 1,009% 47,344 March 31, 2003 ++ 1.39% 1.39% (0.72)% 971% 15,144 March 31, 2002 ++ 1.54% 1.54% (0.74)% 949% 51,983 March 31, 2001 ++ 1.26% 1.25% (0.41)% 944% 50,159 March 31, 2000 ++ 1.58% 1.57% (0.81)% 1,794% 54,609 ENERGY SERVICES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (1.41)%** 303% 19,634 March 31, 2004 1.87% 1.87% (1.39)% 1,009% 25,302 March 31, 2003 ++ 1.88% 1.88% (1.26)% 971% 1,961 March 31, 2002 ++ 1.97% 1.97% (1.21)% 949% 22,051 March 31, 2001 ++ 1.74% 1.73% (1.17)% 944% 2,879 March 31, 2000 ++ 2.20% 2.20% (1.49)% 1,794% 34,524 ENERGY SERVICES FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.62%** 1.62%** (1.58)%** 303% 9 ENERGY SERVICES FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (1.93)%** 303% 6,937 March 31, 2004 2.37% 2.37% (1.86)% 1,009% 2,833 March 31, 2003 ++ 2.39% 2.39% (1.60)% 971% 651 March 31, 2002 ++ 2.57% 2.57% (1.60)% 949% 697 March 31,2001 *++ 0.00%**@ 0.00%**@ 0.00%** 944% 3 FINANCIAL SERVICES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.35%** 1.35%** 0.71%** 440% 9,503 March 31, 2004 1.36% 1.36% 0.94% 1,200% 34,423 March 31, 2003 1.38% 1.38% 0.82% 2,336% 6,671 March 31, 2002 1.51% 1.51% 0.43% 1,110% 25,147 March 31, 2001 1.24% 1.23% 0.58% 1,271% 35,190 March 31, 2000 1.72% 1.71% (0.15)% 2,770% 145,449 FINANCIAL SERVICES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.83%** 1.83%** 0.23%** 440% 22,633 March 31, 2004 1.86% 1.86% 0.39% 1,200% 40,885 March 31, 2003 1.88% 1.88% 0.35% 2,336% 15,074 March 31, 2002 2.02% 2.02% (0.08)% 1,110% 40,968 March 31, 2001 1.74% 1.73% 0.05% 1,271% 30,627 March 31, 2000 2.29% 2.28% (0.64)% 2,770% 129,760 FINANCIAL SERVICES FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.60%** 1.60%** 1.09%** 440% 22 FINANCIAL SERVICES FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (0.37)%** 440% 2,489 March 31, 2004 2.37% 2.37% (0.23)% 1,200% 2,242 March 31, 2003 2.37% 2.37% (0.19)% 2,336% 222 March 31, 2002 * 2.52%** 2.52%** (0.50)%** 1,110% 526
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001 -- ENERGY SERVICES FUND C-CLASS; APRIL 19, 2001 -- FINANCIAL SERVICES FUND C-CLASS; SEPTEMBER 1, 2004 -- ENERGY SERVICES FUND A-CLASS AND FINANCIAL SERVICES FUND A-CLASS. ** 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 YEAR ENDED MARCH 31, 2000 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. +++ UNAUDITED @ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 63 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ 12.50 $ (.03) $ (.42) $ (.45) $ -- $ -- March 31, 2004 9.21 (.07) 3.36 3.29 -- -- March 31, 2003 11.36 (.02) (2.13) (2.15) -- -- March 31, 2002 11.25 (.04) .15 .11 -- -- March 31, 2001 10.25 (.05) 1.05 1.00 -- -- March 31, 2000 11.45 (.04) (1.15) (1.19) -- (.01) HEALTH CARE FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 12.11 (.05) (.41) (.46) -- -- March 31, 2004 8.97 (.12) 3.26 3.14 -- -- March 31, 2003 11.11 (.06) (2.08) (2.14) -- -- March 31, 2002 11.06 (.09) .14 .05 -- -- March 31, 2001 10.12 (.11) 1.05 .94 -- -- March 31, 2000 11.37 (.15) (1.09) (1.24) -- (.01) HEALTH CARE FUND A-CLASS SEPTEMBER 30, 2004*+++ 11.65 (.01) .02 .01 -- -- HEALTH CARE FUND C-CLASS SEPTEMBER 30, 2004+++ 12.11 (.09) (.39) (.48) -- -- March 31, 2004 9.03 (.18) 3.26 3.08 -- -- March 31, 2003 11.25 (.12) (2.10) (2.22) -- -- March 31, 2002 11.25 (.18) .18 -- -- -- March 31, 2001 * 11.25 -- -- -- -- -- INTERNET FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 35.66 (.22) (2.48) (2.70) -- -- March 31, 2004 20.43 (.41) 15.64 15.23 -- -- March 31, 2003 30.55 (.29) (9.83) (10.12) -- -- March 31, 2002 41.80 (.31) (10.94) (11.25) -- -- March 31, 2001 *++ 200.00 (1.60) (156.60) (158.20) -- -- INTERNET FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 34.85 (.31) (2.40) (2.71) -- -- March 31, 2004 20.05 (.54) 15.34 14.80 -- -- March 31, 2003 30.18 (.40) (9.73) (10.13) -- -- March 31, 2002 41.60 (.64) (10.78) (11.42) -- -- March 31, 2001 *++ 200.00 (2.80) (155.60) (158.40) -- -- INTERNET FUND A-CLASS SEPTEMBER 30, 2004*+++ 30.65 (.03) 1.53 1.50 -- -- INTERNET FUND C-CLASS SEPTEMBER 30, 2004+++ 34.64 (.37) (2.40) (2.77) -- -- March 31, 2004 20.04 (.72) 15.32 14.60 -- -- March 31, 2003 30.28 (.50) (9.74) (10.24) -- -- March 31, 2002 * 53.40 (.78) (22.34) (23.12) -- -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ HEALTH CARE FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ -- $ (.45) $ 12.05 (3.60)% March 31, 2004 -- 3.29 12.50 35.72% March 31, 2003 -- (2.15) 9.21 (18.93)% March 31, 2002 -- .11 11.36 0.98% March 31, 2001 -- 1.00 11.25 9.76% March 31, 2000 (.01) (1.20) 10.25 (10.44)% HEALTH CARE FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (.46) 11.65 (3.80)% March 31, 2004 -- 3.14 12.11 35.01% March 31, 2003 -- (2.14) 8.97 (19.26)% March 31, 2002 -- .05 11.11 0.45% March 31, 2001 -- .94 11.06 9.29% March 31, 2000 (.01) (1.25) 10.12 (10.95)% HEALTH CARE FUND A-CLASS SEPTEMBER 30, 2004*+++ -- .01 11.66 0.09% HEALTH CARE FUND C-CLASS SEPTEMBER 30, 2004+++ -- (.48) 11.63 (3.96)% March 31, 2004 -- 3.08 12.11 34.11% March 31, 2003 -- (2.22) 9.03 (19.73)% March 31, 2002 -- -- 11.25 0.00% March 31, 2001 * -- -- 11.25 0.00% INTERNET FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ -- (2.70) 32.96 (7.57)% March 31, 2004 -- 15.23 35.66 74.55% March 31, 2003 -- (10.12) 20.43 (33.13)% March 31, 2002 -- (11.25) 30.55 (26.91)% March 31, 2001 *++ -- (158.20) 41.80 (79.10)% INTERNET FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (2.71) 32.14 (7.78)% March 31, 2004 -- 14.80 34.85 73.82% March 31, 2003 -- (10.13) 20.05 (33.57)% March 31, 2002 -- (11.42) 30.18 (27.45)% March 31, 2001 *++ -- (158.40) 41.60 (79.20)% INTERNET FUND A-CLASS SEPTEMBER 30, 2004*+++ -- 1.50 32.15 4.89% INTERNET FUND C-CLASS SEPTEMBER 30, 2004+++ -- (2.77) 31.87 (8.00)% March 31, 2004 -- 14.60 34.64 72.85% March 31, 2003 -- (10.24) 20.04 (33.82)% March 31, 2002 * -- (23.12) 30.28 (43.30)% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------- HEALTH CARE FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.35%** 1.35%** (0.45)%** 292% $25,542 March 31, 2004 1.36% 1.36% (0.56)% 1,204% 19,801 March 31, 2003 1.38% 1.38% (0.25)% 1,395% 13,400 March 31, 2002 1.37% 1.37% (0.36)% 936% 20,567 March 31, 2001 1.55% 1.54% (0.39)% 1,399% 42,495 March 31, 2000 1.41% 1.41% (0.36)% 4,850% 30,729 HEALTH CARE FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (0.87)%** 292% 22,905 March 31, 2004 1.85% 1.85% (1.05)% 1,204% 27,102 March 31, 2003 1.88% 1.88% (0.66)% 1,395% 23,127 March 31, 2002 1.85% 1.85% (0.81)% 936% 29,504 March 31, 2001 2.05% 2.04% (0.98)% 1,399% 24,444 March 31, 2000 2.16% 2.15% (1.51)% 4,850% 1,741 HEALTH CARE FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.70%** 1.70%** (1.35)%** 292% 21 HEALTH CARE FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (1.42)%** 292% 3,486 March 31, 2004 2.37% 2.37% (1.60)% 1,204% 2,865 March 31, 2003 2.37% 2.37% (1.30)% 1,395% 421 March 31, 2002 2.54% 2.54% (1.59)% 936% 1,085 March 31, 2001 * 0.00%**@ 0.00%**@ 0.00%** 1,399% 3 INTERNET FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.37%** 1.37%** (1.29)%** 988% 6,795 March 31, 2004 1.36% 1.36% (1.31)% 1,340% 15,292 March 31, 2003 1.38% 1.38% (1.34)% 2,052% 3,335 March 31, 2002 1.21% 1.21% (1.15)% 2,186% 3,124 March 31, 2001 *++ 1.61%** 1.61%** (1.43)%** 1,937% 1,625 INTERNET FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.67%** 1.67%** (1.60)%** 988% 3,435 March 31, 2004 1.86% 1.86% (1.81)% 1,340% 12,090 March 31, 2003 1.82% 1.82% (1.79)% 2,052% 717 March 31, 2002 1.74% 1.74% (1.68)% 2,186% 396 March 31, 2001 *++ 2.09%** 2.08%** (2.00)%** 1,937% 201 INTERNET FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.70%** 1.70%** (1.68)%** 988% 11 INTERNET FUND C-CLASS SEPTEMBER 30, 2004+++ 2.38%** 2.38%** (2.28)%** 988% 2,018 March 31, 2004 2.36% 2.36% (2.31)% 1,340% 1,556 March 31, 2003 2.37% 2.37% (2.34)% 2,052% 234 March 31, 2002 * 2.36%** 2.36%** (2.33)%** 2,186% 149
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6, 2000 -- INTERNET FUND INVESTOR CLASS AND ADVISOR CLASS; MARCH 30, 2001 -- HEALTH CARE FUND C-CLASS; APRIL 19, 2001 -- INTERNET FUND C-CLASS; SEPTEMBER 1, 2004 -- HEALTH CARE FUND A-CLASS AND INTERNET FUND A-CLASS. ** 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 YEAR ENDED MARCH 31, 2001 HAVE BEEN RESTATED TO REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001. +++ UNAUDITED @ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. See Notes to Financial Statements. 64 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ LEISURE FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ 27.66 $ (.11) $ (.97) $ (1.08) $ -- $ -- March 31, 2004 17.88 (.06) 9.84 9.78 -- -- March 31, 2003 ++ 24.00 (.15) (5.97) (6.12) -- -- March 31, 2002 ++ 25.56 (.33) (1.23) (1.56) -- -- March 31, 2001 ++ 33.30 (.36) (7.38) (7.74) -- -- March 31, 2000 ++ 33.63 .09 (.12) (.03) -- (.30) LEISURE FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 26.74 (.17) (.94) (1.11) -- -- March 31, 2004 17.37 (.23) 9.60 9.37 -- -- March 31, 2003 ++ 23.34 (.39) (5.58) (5.97) -- -- March 31, 2002 ++ 24.93 (.51) (1.08) (1.59) -- -- March 31, 2001 ++ 32.82 (.51) (7.38) (7.89) -- -- March 31, 2000 ++ 33.48 (.42) .06 (.36) -- (.30) LEISURE FUND A-CLASS SEPTEMBER 30, 2004*+++ 24.59 (.03) 1.07 1.04 -- -- LEISURE FUND C-CLASS SEPTEMBER 30, 2004+++ 26.93 (.21) (.97) (1.18) -- -- March 31, 2004 17.61 (.38) 9.70 9.32 -- -- March 31, 2003 ++ 23.79 (.36) (5.82) (6.18) -- -- March 31, 2002 *++ 29.01 (.45) (4.77) (5.22) -- -- PRECIOUS METALS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 44.32 (.09) (3.03) (3.12) -- -- March 31, 2004 26.78 (.12) 17.67 17.55 (.01) -- March 31, 2003 27.90 .03 (1.15) (1.12) -- -- March 31, 2002 17.73 .01 10.30 10.31 (.14) -- March 31, 2001 18.80 .05 (1.12) (1.07) -- -- March 31, 2000 ++ 20.95 (.10) (2.05) (2.15) -- -- PRECIOUS METALS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 44.17 (.19) (3.00) (3.19) -- -- March 31,2004 * 31.68 (.18) 12.68 12.50 (.01) -- PRECIOUS METALS FUND A-CLASS SEPTEMBER 30, 2004*+++ 37.26 (.04) 3.76 3.72 -- -- PRECIOUS METALS FUND C-CLASS SEPTEMBER 30, 2004+++ 43.16 (.26) (2.98) (3.24) -- -- March 31, 2004 26.35 (.51) 17.33 16.82 (.01) -- March 31, 2003 27.72 (.27) (1.10) (1.37) -- -- March 31, 2002 * 20.41 (.26) 7.71 7.45 (.14) -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ----------------------------------------------------------------------------------------------- LEISURE FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ -- $ (1.08) $ 26.58 (3.90)% March 31, 2004 -- 9.78 27.66 54.70% March 31, 2003 ++ -- (6.12) 17.88 (25.50)% March 31, 2002 ++ -- (1.56) 24.00 (6.10)% March 31, 2001 ++ -- (7.74) 25.56 (23.24)% March 31, 2000 ++ (.30) (.33) 33.30 (0.07)% LEISURE FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (1.11) 25.63 (4.15)% March 31, 2004 -- 9.37 26.74 53.94% March 31, 2003 ++ -- (5.97) 17.37 (25.58)% March 31, 2002 ++ -- (1.59) 23.34 (6.38)% March 31, 2001 ++ -- (7.89) 24.93 (24.04)% March 31, 2000 ++ (.30) (.66) 32.82 (1.06)% LEISURE FUND A-CLASS SEPTEMBER 30, 2004*+++ -- 1.04 25.63 4.23% LEISURE FUND C-CLASS SEPTEMBER 30, 2004+++ -- (1.18) 25.75 (4.38)% March 31, 2004 -- 9.32 26.93 52.92% March 31, 2003 ++ -- (6.18) 17.61 (25.98)% March 31, 2002 *++ -- (5.22) 23.79 (17.99)% PRECIOUS METALS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ -- (3.12) 41.20 (7.04)% March 31, 2004 (.01) 17.54 44.32 65.53% March 31, 2003 -- (1.12) 26.78 (4.01)% March 31, 2002 (.14) 10.17 27.90 58.44% March 31, 2001 -- (1.07) 17.73 (5.69)% March 31, 2000 ++ -- (2.15) 18.80 (10.26)% PRECIOUS METALS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- (3.19) 40.98 (7.22)% March 31,2004 * (.01) 12.49 44.17 39.46% PRECIOUS METALS FUND A-CLASS SEPTEMBER 30, 2004*+++ -- 3.72 40.98 9.98% PRECIOUS METALS FUND C-CLASS SEPTEMBER 30, 2004+++ -- (3.24) 39.92 (7.51)% March 31, 2004 (.01) 16.81 43.16 63.83% March 31, 2003 -- (1.37) 26.35 (4.94)% March 31, 2002 * (.14) 7.31 27.72 36.75% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------- LEISURE FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.34%** 1.34%** (0.76)%** 464% $14,058 March 31, 2004 1.36% 1.36% (0.31)% 1,870% 25,030 March 31, 2003 ++ 1.38% 1.38% (0.65)% 3,179% 2,325 March 31, 2002 ++ 1.57% 1.57% (1.27)% 2,609% 11,443 March 31, 2001 ++ 1.55% 1.55% (1.18)% 2,756% 1,277 March 31, 2000 ++ 1.58% 1.58% 0.30% 5,734% 5,563 LEISURE FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.85%** 1.85%** (1.30)%** 464% 21,029 March 31, 2004 1.86% 1.86% (1.06)% 1,870% 39,789 March 31, 2003 ++ 1.90% 1.90% (1.68)% 3,179% 3,592 March 31, 2002 ++ 2.26% 2.26% (2.05)% 2,609% 9,324 March 31, 2001 ++ 2.08% 2.07% (1.77)% 2,756% 18,299 March 31, 2000 ++ 2.08% 2.08% (1.32)% 5,734% 18,559 LEISURE FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.74%** 1.74%** (1.45)%** 464% 1 LEISURE FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** (1.72)%** 464% 2,699 March 31, 2004 2.37% 2.37% (1.59)% 1,870% 2,165 March 31, 2003 ++ 2.39% 2.39% (1.70)% 3,179% 36 March 31, 2002 *++ 2.53%** 2.53%** (2.14)%** 2,609% 87 PRECIOUS METALS FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.25%** 1.25%** (0.51)%** 174% 224,091 March 31, 2004 1.26% 1.26% (0.32)% 550% 236,961 March 31, 2003 1.27% 1.27% 0.09% 744% 75,185 March 31, 2002 1.39% 1.39% 0.07% 839% 59,625 March 31, 2001 1.18% 1.17% 0.30% 822% 25,096 March 31, 2000 ++ 1.23% 1.23% (0.34)% 1,004% 37,780 PRECIOUS METALS FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.74%** 1.74%** (1.13)%** 174% 4,989 March 31,2004 * 1.72%** 1.72%** (0.68)%** 550% 2,112 PRECIOUS METALS FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.35%** 1.35%** (1.46)%** 174% 79 PRECIOUS METALS FUND C-CLASS SEPTEMBER 30, 2004+++ 2.25%** 2.25%** (1.50)%** 174% 19,744 March 31, 2004 2.27% 2.27% (1.38)% 550% 17,998 March 31, 2003 2.27% 2.27% (0.94)% 744% 2,150 March 31, 2002 * 2.38%** 2.38%** (1.23)%** 839% 910
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 27, 2001 -- PRECIOUS METALS FUND C-CLASS; MAY 3, 2001 -- LEISURE FUND C-CLASS; AUGUST 1, 2003 -- PRECIOUS METALS FUND ADVISOR CLASS; SEPTEMBER 1, 2004 -- LEISURE FUND A-CLASS AND PRECIOUS METALS FUND A-CLASS. ** 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. ++ LEISURE FUND -- PER SHARE AMOUNTS FOR THE YEARS ENDED MARCH 31, 2000 THROUGH MARCH 31, 2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21, 2003. PRECIOUS METALS FUND -- PER SHARE AMOUNTS FOR THE YEAR ENDED MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 1:5 REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000. +++ UNAUDITED THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 65 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ REAL ESTATE FUND A-CLASS SEPTEMBER 30,2004*++ $ 26.66 $ .01 $ .04 $ .05 $ -- $ -- REAL ESTATE FUND C-CLASS SEPTEMBER 30, 2004++ 26.63 .23 (.25) (.02) -- -- March 31, 2004 * 25.00 .02 1.61 1.63 -- -- REAL ESTATE FUND H-CLASS SEPTEMBER 30, 2004++ 26.65 .25 (.19) .06 -- -- March 31, 2004 * 25.00 .10 1.55 1.65 -- -- RETAILING FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 11.74 (.03) (.82) (.85) -- -- March 31, 2004 8.00 (.08) 3.82 3.74 -- -- March 31, 2003 11.12 (.07) (3.05) (3.12) -- -- March 31, 2002 10.29 (.10) .93 .83 -- -- March 31, 2001 13.22 (.09) (2.84) (2.93) -- -- March 31, 2000 13.54 .02 (.23) (.21) -- (.11) RETAILING FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 11.49 (.06) (.80) (.86) -- -- March 31, 2004 7.85 (.13) 3.77 3.64 -- -- March 31, 2003 10.94 (.12) (2.97) (3.09) -- -- March 31, 2002 10.17 (.15) .92 .77 -- -- March 31, 2001 13.18 (.16) (2.85) (3.01) -- -- March 31, 2000 13.50 (.33) .12 (.21) -- (.11) RETAILING FUND A-CLASS SEPTEMBER 30, 2004*++ 10.45 (.01) .20 .19 -- -- RETAILING FUND C-CLASS SEPTEMBER 30, 2004++ 11.37 (.08) (.80) (.88) -- -- March 31, 2004 7.81 (.18) 3.74 3.56 -- -- March 31, 2003 11.02 (.20) (3.01) (3.21) -- -- March 31, 2002 * 10.68 (.20) .54 .34 -- -- TECHNOLOGY FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 11.40 (.05) (1.47) (1.52) -- -- March 31, 2004 7.11 (.11) 4.40 4.29 -- -- March 31, 2003 11.00 (.09) (3.80) (3.89) -- -- March 31, 2002 12.70 (.15) (1.55) (1.70) -- -- March 31, 2001 31.59 (.24) (18.65) (18.89) -- -- March 31, 2000 17.02 (.19) 14.76 14.57 -- -- TECHNOLOGY FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 11.13 (.08) (1.42) (1.50) -- -- March 31, 2004 6.97 (.16) 4.32 4.16 -- -- March 31, 2003 10.77 (.12) (3.68) (3.80) -- -- March 31, 2002 12.49 (.20) (1.52) (1.72) -- -- March 31, 2001 31.20 (.31) (18.40) (18.71) -- -- March 31, 2000 16.90 (.37) 14.67 14.30 -- -- TECHNOLOGY FUND A-CLASS SEPTEMBER 30, 2004*++ 9.32 (.01) .31 .30 -- -- TECHNOLOGY FUND C-CLASS SEPTEMBER 30, 2004++ 11.10 (.09) (1.42) (1.51) -- -- March 31, 2004 7.00 (.21) 4.31 4.10 -- -- March 31, 2003 10.90 (.18) (3.72) (3.90) -- -- March 31, 2002 * 14.82 (.25) (3.67) (3.92) -- -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ REAL ESTATE FUND A-CLASS SEPTEMBER 30,2004*++ $ -- $ .05 $ 26.71 0.19% REAL ESTATE FUND C-CLASS SEPTEMBER 30, 2004++ -- (.02) 26.61 (0.08)% March 31, 2004 * -- 1.63 26.63 6.52% REAL ESTATE FUND H-CLASS SEPTEMBER 30, 2004++ -- .06 26.71 0.23% March 31, 2004 * -- 1.65 26.65 6.60% RETAILING FUND INVESTOR CLASS SEPTEMBER 30, 2004++ -- (.85) 10.89 (7.24)% March 31, 2004 -- 3.74 11.74 46.75% March 31, 2003 -- (3.12) 8.00 (28.06)% March 31, 2002 -- .83 11.12 8.07% March 31, 2001 -- (2.93) 10.29 (22.16)% March 31, 2000 (.11) (.32) 13.22 (1.51)% RETAILING FUND ADVISOR CLASS SEPTEMBER 30, 2004++ -- (.86) 10.63 (7.48)% March 31, 2004 -- 3.64 11.49 46.37% March 31, 2003 -- (3.09) 7.85 (28.24)% March 31, 2002 -- .77 10.94 7.57% March 31, 2001 -- (3.01) 10.17 (22.84)% March 31, 2000 (.11) (.32) 13.18 (1.52)% RETAILING FUND A-CLASS SEPTEMBER 30, 2004*++ -- .19 10.64 1.82% RETAILING FUND C-CLASS SEPTEMBER 30, 2004++ -- (.88) 10.49 (7.74)% March 31, 2004 -- 3.56 11.37 45.58% March 31, 2003 -- (3.21) 7.81 (29.13)% March 31, 2002 * -- .34 11.02 3.18% TECHNOLOGY FUND INVESTOR CLASS SEPTEMBER 30, 2004++ -- (1.52) 9.88 (13.33)% March 31, 2004 -- 4.29 11.40 60.34% March 31, 2003 -- (3.89) 7.11 (35.36)% March 31, 2002 -- (1.70) 11.00 (13.39)% March 31, 2001 -- (18.89) 12.70 (59.80)% March 31, 2000 -- 14.57 31.59 85.61% TECHNOLOGY FUND ADVISOR CLASS SEPTEMBER 30, 2004++ -- (1.50) 9.63 (13.48)% March 31, 2004 -- 4.16 11.13 59.68% March 31, 2003 -- (3.80) 6.97 (35.28)% March 31, 2002 -- (1.72) 10.77 (13.77)% March 31, 2001 -- (18.71) 12.49 (59.97)% March 31, 2000 -- 14.30 31.20 84.62% TECHNOLOGY FUND A-CLASS SEPTEMBER 30, 2004*++ -- .30 9.62 3.22% TECHNOLOGY FUND C-CLASS SEPTEMBER 30, 2004++ -- (1.51) 9.59 (13.60)% March 31, 2004 -- 4.10 11.10 58.57% March 31, 2003 -- (3.90) 7.00 (35.78)% March 31, 2002 * -- (3.92) 10.90 (26.45)% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------ REAL ESTATE FUND A-CLASS SEPTEMBER 30,2004*++ 1.61%** 1.61%** 0.28%** 1,020% $ 61 REAL ESTATE FUND C-CLASS SEPTEMBER 30, 2004++ 2.35%** 2.35%** 1.82%** 1,020% 913 March 31, 2004 * 2.36%** 2.36%** 0.72%** 102% 7,562 REAL ESTATE FUND H-CLASS SEPTEMBER 30, 2004++ 1.61%** 1.61%** 1.96%** 1,020% 39,684 March 31, 2004 * 1.61%** 1.61%** 3.83%** 102% 75,916 RETAILING FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 1.35%** 1.35%** (0.51)%** 702% 4,564 March 31, 2004 1.35% 1.35% (0.78)% 1,825% 11,738 March 31, 2003 1.38% 1.38% (0.82)% 3,788% 2,964 March 31, 2002 1.44% 1.44% (0.92)% 2,030% 21,667 March 31, 2001 1.51% 1.50% (0.78)% 3,062% 33,228 March 31, 2000 1.44% 1.44% 0.16% 2,537% 81,097 RETAILING FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 1.85%** 1.85%** (1.06)%** 702% 4,680 March 31, 2004 1.85% 1.85% (1.25)% 1,825% 15,863 March 31, 2003 1.88% 1.88% (1.35)% 3,788% 14,965 March 31, 2002 1.95% 1.95% (1.40)% 2,030% 37,690 March 31, 2001 2.10% 2.09% (1.49)% 3,062% 11,286 March 31, 2000 2.10% 2.09% (2.69)% 2,537% 91,740 RETAILING FUND A-CLASS SEPTEMBER 30, 2004*++ 1.75%** 1.75%** (1.33)%** 702% 1 RETAILING FUND C-CLASS SEPTEMBER 30, 2004++ 2.35%** 2.35%** (1.50)%** 702% 1,095 March 31, 2004 2.36% 2.36% (1.72)% 1,825% 2,362 March 31, 2003 2.32% 2.32% (1.89)% 3,788% 85 March 31, 2002 * 2.70%** 2.70%** (2.13)%** 2,030% 1,028 TECHNOLOGY FUND INVESTOR CLASS SEPTEMBER 30, 2004++ 1.35%** 1.35%** (0.95)%** 720% 15,311 March 31, 2004 1.36% 1.36% (1.07)% 1,853% 17,114 March 31, 2003 1.38% 1.38% (1.13)% 1,938% 8,348 March 31, 2002 1.44% 1.44% (1.21)% 1,017% 35,815 March 31, 2001 1.30% 1.30% (1.01)% 2,202% 26,660 March 31, 2000 1.41% 1.40% (0.85)% 4,929% 90,002 TECHNOLOGY FUND ADVISOR CLASS SEPTEMBER 30, 2004++ 1.85%** 1.85%** (1.49)%** 720% 14,966 March 31, 2004 1.86% 1.86% (1.58)% 1,853% 17,972 March 31, 2003 1.88% 1.88% (1.62)% 1,938% 16,717 March 31, 2002 1.93% 1.93% (1.69)% 1,017% 25,769 March 31, 2001 1.81% 1.81% (1.48)% 2,202% 20,450 March 31, 2000 1.89% 1.89% (1.60)% 4,929% 32,537 TECHNOLOGY FUND A-CLASS SEPTEMBER 30, 2004*++ 1.65%** 1.65%** (1.46)%** 720% 6 TECHNOLOGY FUND C-CLASS SEPTEMBER 30, 2004++ 2.35%** 2.35%** (1.89)%** 720% 806 March 31, 2004 2.36% 2.36% (2.13)% 1,853% 1,101 March 31, 2003 2.37% 2.37% (2.07)% 1,938% 434 March 31, 2002 * 2.43%** 2.43%** (2.22)%** 1,017% 424
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001-- TECHNOLOGY FUND C-CLASS; MAY 9, 2001--RETAILING FUND C-CLASS; FEBRUARY 20, 2004 -- REAL ESTATE FUND C-CLASS AND H-CLASS; SEPTEMBER 1, 2004 -- REAL ESTATE FUND A-CLASS, RETAILING FUND A-CLASS AND TECHNOLOGY FUND A-CLASS. ** 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. ++ UNAUDITED See Notes to Financial Statements. 66 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ TELECOMMUNICATIONS FUND INVESTOR CLASS SEPTEMBER 30,2004+++ $ 15.48 $ .01 $ (1.09) $ (1.08) $ -- $ -- March 31, 2004 10.05 -- 5.48 5.48 (.05) -- March 31, 2003 ++ 15.12 .06 (5.13) (5.07) -- -- March 31, 2002 ++ 24.03 (.12) (8.70) (8.82) -- (.09) March 31, 2001 ++ 61.17 (.30) (36.84) (37.14) -- -- March 31, 2000 ++ 39.09 (.30) 22.41 22.11 -- (.03) TELECOMMUNICATIONS FUND ADVISOR CLASS SEPTEMBER 30,2004+++ 15.07 (.03) (1.05) (1.08) -- -- March 31, 2004 9.81 (.08) 5.39 5.31 (.05) -- March 31, 2003 ++ 14.76 (.09) (4.86) (4.95) -- -- March 31, 2002 ++ 23.58 (.06) (8.67) (8.73) -- (.09) March 31, 2001 ++ 60.39 (.54) (36.27) (36.81) -- -- March 31, 2000 ++ 38.73 (.57) 22.26 21.69 -- (.03) TELECOMMUNICATIONS FUND A-CLASS SEPTEMBER 30,2004*+++ 13.55 -- .44 .44 -- -- TELECOMMUNICATIONS FUND C-CLASS SEPTEMBER 30,2004+++ 15.06 (.05) (1.07) (1.12) -- -- March 31, 2004 9.84 (.15) 5.42 5.27 (.05) -- March 31, 2003 ++ 14.97 (.09) (5.04) (5.13) -- -- March 31, 2002 *++ 26.91 (.24) (11.61) (11.85) -- (.09) TRANSPORTATION FUND INVESTOR CLASS SEPTEMBER 30,2004+++ 18.84 (.07) 1.65 1.58 -- -- March 31, 2004 15.03 (.06) 3.87 3.81 -- -- March 31, 2003 ++ 20.85 (.12) (5.70) (5.82) -- -- March 31, 2002 ++ 19.26 (.09) 1.68 1.59 -- -- March 31, 2001 ++ 18.72 -- .54 .54 -- -- March 31, 2000 ++ 23.97 (.21) (5.04) (5.25) -- -- TRANSPORTATION FUND ADVISOR CLASS SEPTEMBER 30,2004+++ 18.02 (.12) 1.55 1.43 -- -- March 31, 2004 14.40 (.12) 3.74 3.62 -- -- March 31, 2003 ++ 19.98 (.15) (5.43) (5.58) -- -- March 31, 2002 ++ 18.57 (.21) 1.62 1.41 -- -- March 31, 2001 ++ 18.48 (.03) .12 .09 -- -- March 31, 2000 ++ 23.85 -- (5.37) (5.37) -- -- TRANSPORTATION FUND A-CLASS SEPTEMBER 30,2004*+++ 18.73 (.01) .73 .72 -- -- TRANSPORTATION FUND C-CLASS SEPTEMBER 30,2004+++ 18.43 (.17) 1.61 1.44 -- -- March 31, 2004 14.85 (.25) 3.83 3.58 -- -- March 31, 2003 ++ 20.73 (.27) (5.61) (5.88) -- -- March 31, 2002 *++ 20.04 (.24) .93 .69 -- -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ----------------------------------------------------------------------------------------------- TELECOMMUNICATIONS FUND INVESTOR CLASS SEPTEMBER 30,2004+++ $ -- $ (1.08) $ 14.40 (6.98)% March 31, 2004 (.05) 5.43 15.48 54.59% March 31, 2003 ++ -- (5.07) 10.05 (33.53)% March 31, 2002 ++ (.09) (8.91) 15.12 (36.84)% March 31, 2001 ++ -- (37.14) 24.03 (60.72)% March 31, 2000 ++ (.03) 22.08 61.17 56.54% TELECOMMUNICATIONS FUND ADVISOR CLASS SEPTEMBER 30,2004+++ -- (1.08) 13.99 (7.17)% March 31, 2004 (.05) 5.26 15.07 54.20% March 31, 2003 ++ -- (4.95) 9.81 (33.54)% March 31, 2002 ++ (.09) (8.82) 14.76 (37.16)% March 31, 2001 ++ -- (36.81) 23.58 (60.95)% March 31, 2000 ++ (.03) 21.66 60.39 55.98% TELECOMMUNICATIONS FUND A-CLASS SEPTEMBER 30,2004*+++ -- .44 13.99 3.25% TELECOMMUNICATIONS FUND C-CLASS SEPTEMBER 30,2004+++ -- (1.12) 13.94 (7.44)% March 31, 2004 (.05) 5.22 15.06 53.62% March 31, 2003 ++ -- (5.13) 9.84 (34.27)% March 31, 2002 *++ (.09) (11.94) 14.97 (44.16)% TRANSPORTATION FUND INVESTOR CLASS SEPTEMBER 30,2004+++ -- 1.58 20.42 8.39% March 31, 2004 -- 3.81 18.84 25.35% March 31, 2003 ++ -- (5.82) 15.03 (27.91)% March 31, 2002 ++ -- 1.59 20.85 8.26% March 31, 2001 ++ -- .54 19.26 2.88% March 31, 2000 ++ -- (5.25) 18.72 (21.90)% TRANSPORTATION FUND ADVISOR CLASS SEPTEMBER 30,2004+++ -- 1.43 19.45 7.94% March 31, 2004 -- 3.62 18.02 25.14% March 31, 2003 ++ -- (5.58) 14.40 (27.93)% March 31, 2002 ++ -- 1.41 19.98 7.59% March 31, 2001 ++ -- .09 18.57 0.49% March 31, 2000 ++ -- (5.37) 18.48 (22.52)% TRANSPORTATION FUND A-CLASS SEPTEMBER 30,2004*+++ -- .72 19.45 3.84% TRANSPORTATION FUND C-CLASS SEPTEMBER 30,2004+++ -- 1.44 19.87 7.81% March 31, 2004 -- 3.58 18.43 24.11% March 31, 2003 ++ -- (5.88) 14.85 (28.36)% March 31, 2002 *++ -- .69 20.73 3.44% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - ------------------------------------------------------------------------------------------------------------------- TELECOMMUNICATIONS FUND INVESTOR CLASS SEPTEMBER 30,2004+++ 1.34%** 1.34%** 0.20%** 589% $11,558 March 31, 2004 1.37% 1.37% 0.01% 1,506% 14,406 March 31, 2003 ++ 1.38% 1.38% 0.46% 2,431% 9,152 March 31, 2002 ++ 1.51% 1.51% (0.60)% 1,192% 4,530 March 31, 2001 ++ 1.37% 1.37% (0.65)% 1,273% 9,924 March 31, 2000 ++ 1.50% 1.49% (0.59)% 1,555% 66,904 TELECOMMUNICATIONS FUND ADVISOR CLASS SEPTEMBER 30,2004+++ 1.88%** 1.88%** (0.35)%** 589% 4,802 March 31, 2004 1.87% 1.87% (0.58)% 1,506% 7,376 March 31, 2003 ++ 1.86% 1.86% (0.68)% 2,431% 898 March 31, 2002 ++ 1.87% 1.87% (0.29)% 1,192% 931 March 31, 2001 ++ 1.87% 1.86% (1.24)% 1,273% 19,154 March 31, 2000 ++ 2.05% 2.05% (1.14)% 1,555% 3,449 TELECOMMUNICATIONS FUND A-CLASS SEPTEMBER 30,2004*+++ 1.18%** 1.18%** 0.37%** 589% 9 TELECOMMUNICATIONS FUND C-CLASS SEPTEMBER 30,2004+++ 2.36%** 2.36%** (0.73)%** 589% 1,337 March 31, 2004 2.37% 2.37% (1.09)% 1,506% 3,635 March 31, 2003 ++ 2.41% 2.41% (0.71)% 2,431% 774 March 31, 2002 *++ 2.43%** 2.43%** (1.25)%** 1,192% 19 TRANSPORTATION FUND INVESTOR CLASS SEPTEMBER 30,2004+++ 1.36%** 1.36%** (0.68)%** 538% 16,722 March 31, 2004 1.36% 1.36% (0.34)% 1,624% 3,792 March 31, 2003 ++ 1.40% 1.40% (0.70)% 2,786% 960 March 31, 2002 ++ 1.56% 1.56% (0.51)% 1,704% 18,215 March 31, 2001 ++ 1.55% 1.54% (0.05)% 1,293% 8,246 March 31, 2000 ++ 1.97% 1.96% (0.92)% 1,970% 18,501 TRANSPORTATION FUND ADVISOR CLASS SEPTEMBER 30,2004+++ 1.86%** 1.86%** (1.30)%** 538% 5,291 March 31, 2004 1.83% 1.83% (0.73)% 1,624% 4,284 March 31, 2003 ++ 1.92% 1.92% (0.94)% 2,786% 3,561 March 31, 2002 ++ 2.23% 2.23% (1.16)% 1,704% 23,807 March 31, 2001 ++ 2.08% 2.08% (0.16)% 1,293% 233 March 31, 2000 ++ 1.34% 1.33% (0.08)% 1,970% 87,189 TRANSPORTATION FUND A-CLASS SEPTEMBER 30,2004*+++ 1.61%** 1.61%** (1.02)%** 538% 32 TRANSPORTATION FUND C-CLASS SEPTEMBER 30,2004+++ 2.35%** 2.35%** (1.72)%** 538% 1,124 March 31, 2004 2.36% 2.36% (1.53)% 1,624% 656 March 31, 2003 ++ 2.36% 2.36% (1.51)% 2,786% 514 March 31, 2002 *++ 2.59%** 2.59%** (1.35)%** 1,704% 654
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001-- TELECOMMUNICATIONS FUND C-CLASS; MAY 14, 2001-- TRANSPORTATION FUND C-CLASS; SEPTEMBER 1, 2004 -- TELECOMMUNICATIONS FUND A-CLASS AND TRANSPORTATION FUND A-CLASS. ** 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 YEARS ENDED MARCH 31, 2000 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. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 67 FINANCIAL HIGHLIGHTS (CONCLUDED) - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------------ UTILITIES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ 20.57 $ .26 $ .51 $ .77 $ -- $ -- March 31, 2004 16.38 .45 4.71 5.16 (.97) -- March 31, 2003 ++ 25.44 .60 (9.12) (8.52) (.54) -- March 31, 2002 ++ 35.52 .60 (9.12) (8.52) (1.56) -- March 31, 2001 *++ 30.00 .54 4.98 5.52 -- -- UTILITIES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 20.10 .19 .51 .70 -- -- March 31, 2004 16.11 .30 4.66 4.96 (.97) -- March 31, 2003 ++ 25.23 .33 (8.91) (8.58) (.54) -- March 31, 2002 ++ 35.43 .36 (9.00) (8.64) (1.56) -- March 31, 2001 *++ 30.00 .36 5.07 5.43 -- -- UTILITIES FUND A-CLASS SEPTEMBER 30, 2004*+++ 20.66 .02 .12 .14 -- -- UTILITIES FUND C-CLASS SEPTEMBER 30, 2004+++ 19.77 .13 .50 .63 -- -- March 31, 2004 15.93 .22 4.59 4.81 (.97) -- March 31, 2003 ++ 25.08 .30 (8.91) (8.61) (.54) -- March 31, 2002 *++ 37.98 (.12) (11.22) (11.34) (1.56) -- NET INCREASE NET ASSET (DECREASE) IN VALUE, TOTAL TOTAL NET ASSET END OF INVESTMENT DISTRIBUTIONS VALUE PERIOD RETURN - ------------------------------------------------------------------------------------------------ UTILITIES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ $ -- $ .77 $ 21.34 3.74% March 31, 2004 (.97) 4.19 20.57 32.11% March 31, 2003 ++ (.54) (9.06) 16.38 (33.55)% March 31, 2002 ++ (1.56) (10.08) 25.44 (24.07)% March 31, 2001 *++ -- 5.52 35.52 18.40% UTILITIES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ -- .70 20.80 3.48% March 31, 2004 (.97) 3.99 20.10 31.39% March 31, 2003 ++ (.54) (9.12) 16.11 (34.07)% March 31, 2002 ++ (1.56) (10.20) 25.23 (24.47)% March 31, 2001 *++ -- 5.43 35.43 18.10% UTILITIES FUND A-CLASS SEPTEMBER 30, 2004*+++ -- .14 20.80 0.68% UTILITIES FUND C-CLASS SEPTEMBER 30, 2004+++ -- .63 20.40 3.19% March 31, 2004 (.97) 3.84 19.77 30.80% March 31, 2003 ++ (.54) (9.15) 15.93 (34.40)% March 31, 2002 *++ (1.56) (12.90) 25.08 (29.95)% RATIOS TO AVERAGE NET ASSETS: ------------------------------------------- NET NET ASSETS, INVESTMENT PORTFOLIO END OF GROSS NET INCOME TURNOVER PERIOD (000'S EXPENSES EXPENSES (LOSS) RATE*** OMITTED) - -------------------------------------------------------------------------------------------------------------------- UTILITIES FUND INVESTOR CLASS SEPTEMBER 30, 2004+++ 1.36%** 1.36%** 2.52%** 568% $26,733 March 31, 2004 1.35% 1.35% 2.50% 1,609% 19,170 March 31, 2003 ++ 1.39% 1.39% 3.24% 3,158% 9,978 March 31, 2002 ++ 1.54% 1.54% 2.00% 2,418% 26,539 March 31, 2001 *++ 1.59%** 1.59%** 1.65%** 1,591% 15,566 UTILITIES FUND ADVISOR CLASS SEPTEMBER 30, 2004+++ 1.86%** 1.86%** 1.83%** 568% 6,744 March 31, 2004 1.84% 1.84% 1.91% 1,609% 1,072 March 31, 2003 ++ 1.89% 1.89% 1.74% 3,158% 2,239 March 31, 2002 ++ 1.85% 1.85% 1.15% 2,418% 6,053 March 31, 2001 *++ 2.09%** 2.08%** 1.03%** 1,591% 14,360 UTILITIES FUND A-CLASS SEPTEMBER 30, 2004*+++ 1.62%** 1.62%** 1.65%** 568% 49 UTILITIES FUND C-CLASS SEPTEMBER 30, 2004+++ 2.35%** 2.35%** 1.33%** 568% 2,781 March 31, 2004 2.36% 2.36% 1.19% 1,609% 3,948 March 31, 2003 ++ 2.42% 2.42% 1.56% 3,158% 939 March 31, 2002 *++ 2.76%** 2.76%** (0.48)%** 2,418% 192
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 3, 2000 -- INVESTOR AND ADVISOR CLASS; APRIL 27, 2001-- C-CLASS; SEPTEMBER 1, 2004 -- A-CLASS. ** 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 YEARS 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. 68 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Rydex Series Funds (the "Trust") is 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 is authorized to issue an unlimited number of no par value shares. The Trust offers six separate classes of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class Shares, H-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, with the exception of A-Class Shares. C-Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if Shares are redeemed within 12 months of purchase. A-Class Shares are sold at net asset value, plus the applicable front-end sales charge. The sales charge varies depending on the amount of your purchase, but will not exceed 4.75%. A-Class Share purchases of $1 million or more have a 1% Contingent Deferred Sales Charge ("CDSC") if Shares are redeemed within 18 months of purchase. The current sales charge rates are as follows: SALES CHARGE AS % OF SALES CHARGE AS % OF NET AMOUNT OF INVESTMENT OFFERING PRICE AMOUNT INVESTED - -------------------------------------------------------------------------------- Less than $100,000 4.75% 4.99% $100,000 but less than $250,000 3.75% 3.90% $250,000 but less than $500,000 2.75% 2.83% $500,000 but less than $1,000,000 1.60% 1.63% Greater than $1,000,000 0.00% 0.00% At September 30, 2004, the Trust consisted of forty-three separate series: twenty-two Benchmark Funds, one Money Market Fund, eighteen Sector Funds, and two Strategic Funds. This report covers the eighteen Sector Funds (the "Funds"), while the Money Market Fund, the Benchmark Funds and the Strategic Funds are contained in separate reports. At September 30, 2004, none of the Funds have issued 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 ("NYSE") or American Stock Exchange) are valued at the last quoted sales price as of close of business on the NYSE, 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, usually as of 4:00 p.m., Eastern Time, 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 Advisor Class Shares, A-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 upon the respective aggregate net asset 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, post-October losses and regulated futures contracts and options. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 69 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- E. Each 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 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 of Rydex Global Advisors. Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides transfer agent and administrative services to the Trust for fees calculated at an annualized rate of 0.25% of the average daily net assets of each of the 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 Funds. Certain officers and trustees of the Trust are also officers of Rydex Fund Services. The Trust has adopted a Distribution Plan and Shareholder Services Plan applicable to its Advisor Class Shares and a Distribution Plan applicable to A-Class Shares and 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. With regard to Advisor Class Shares only, if a Service Provider provides shareholder 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 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 the shareholder's financial advisor for providing on-going services to the shareholder. The annual 0.75% distribution fee reimburses the Distributor for paying the shareholder's financial advisor an on-going sales commission. The Distributor advances the first year's service and distribution fees. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record. Certain officers and trustees of the Trust are also officers of Rydex Distributors, Inc. 3. FEDERAL INCOME TAX INFORMATION The Funds intend to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute all net investment income and capital gains to 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 derivatives, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations. 70 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT 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. 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, 2004, 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 $ 27,607,545 $ 2,814,306 $ (10,497) $ 2,803,809 Basic Materials Fund 56,353,782 3,964,205 (20,509) 3,943,696 Biotechnology Fund 121,695,352 68,152,498 (115,268) 68,037,230 Consumer Products Fund 24,620,155 -- (573,178) (573,178) Electronics Fund 19,756,203 19,059,157 -- 19,059,157 Energy Fund 148,487,868 20,909,316 -- 20,909,316 Energy Services Fund 86,162,983 19,767,461 -- 19,767,461 Financial Services Fund 33,131,170 7,236,275 -- 7,236,275 Health Care Fund 45,922,747 6,344,538 (744,801) 5,599,737 Internet Fund 14,686,484 866,923 (27,279) 839,644 Leisure Fund 41,342,833 1,469,444 (157,659) 1,311,785 Precious Metals Fund 255,823,399 55,862,980 (145,973) 55,717,007 Real Estate Fund 43,736,318 -- (948,898) (948,898) Retailing Fund 4,882,292 7,724,450 -- 7,724,450 Technology Fund 29,576,253 6,200,875 (63,939) 6,136,936 Telecommunications Fund 17,166,066 3,308,065 (43,128) 3,264,937 Transportation Fund 26,566,819 1,416,317 (156,430) 1,259,887 Utilities Fund 38,750,969 5,248,894 -- 5,248,894
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 71 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 4. REPURCHASE AGREEMENTS The Funds transfer uninvested cash balances into a single joint account, along with uninvested cash balances of the Sector Rotation Fund (included in the Trust, but contained in a separate report) and the Rydex Dynamic Funds (the Titan Master Portfolio, the Tempest Master Portfolio, the Venture Master Portfolio, the Dynamic Dow Master Portfolio, and the Inverse Dynamic Dow Master Portfolio), a separate Trust. The daily aggregate balance is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury. The collateral is in the possession of the Trusts' custodian and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreement at maturity. The repurchase agreements that were executed by the joint account and outstanding as of September 30, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE - ------------------------------------------------------------------------------------------------------ UBS Financial Services, Inc. 1.71% due 10/01/04 $303,702,334 $303,702,334 $303,716,760 - ------------------------------------------------------------------------------------------------------ $303,702,334 $303,716,760 ======================================================================================================
As of September 30, 2004, 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% $ 71,245,050 $ 95,713,941 U. S. Treasury Notes 3.500% - 4.250% 185,004,858 214,072,627 - -------------------------------------------------------------------------------- $309,786,568 ================================================================================ 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, 2004, cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
BASIC BIOTECH- CONSUMER ENERGY FINANCIAL BANKING MATERIALS NOLOGY PRODUCTS ELECTRONICS ENERGY SERVICES SERVICES FUND FUND FUND FUND FUND FUND FUND FUND - --------------------------------------------------------------------------------------------------------------------------------- Purchases $190,133,405 $209,689,453 $383,268,303 $251,376,748 $265,434,907 $433,485,577 $195,311,466 $193,942,547 Sales $181,106,150 $206,782,974 $383,575,524 $265,648,825 $272,687,516 $368,900,123 $190,598,870 $234,745,683 HEALTH PRECIOUS REAL TELECOMMU- CARE INTERNET LEISURE METALS ESTATE RETAILING TECHNOLOGY NICATIONS FUND FUND FUND FUND FUND FUND FUND FUND - --------------------------------------------------------------------------------------------------------------------------------- Purchases $166,832,893 $244,607,438 $169,304,041 $348,868,971 $447,477,736 $125,224,986 $298,184,290 $101,188,743 Sales $161,713,874 $256,225,643 $193,942,673 $330,746,844 $488,027,977 $142,884,260 $296,931,524 $106,544,190 TRANSPOR- TATION UTILITIES FUND FUND - --------------------------------------- Purchases $170,342,786 $163,384,720 Sales $153,538,814 $152,246,323
72 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 6. SHARE TRANSACTIONS The Trust is authorized to distribute an unlimited number of no par value shares.
PURCHASED THROUGH SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED - ------------------------------------------------------------------------------------------------------------------------- Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, September 30, March 31, 2004 2004 2004 2004 2004 2004 - ------------------------------------------------------------------------------------------------------------------------- BANKING FUND Investor Class 15,063,693 29,305,567 -- 21,240 (15,243,230) (29,114,241) Advisor Class 4,934,936 8,354,009 -- 9,588 (3,737,203) (8,041,937) A-Class* 2,426 -- -- -- -- -- C-Class 1,300,018 5,623,221 -- 5,862 (1,326,176) (5,454,395) BASIC MATERIALS FUND Investor Class 7,217,948 20,611,388 -- 1,998 (7,085,818) (20,030,089) Advisor Class 2,071,098 4,166,675 -- 1,426 (2,253,185) (4,054,982) A-Class* 2,036 -- -- -- -- -- C-Class 736,047 2,071,086 -- 234 (678,510) (1,908,446) BIOTECHNOLOGY FUND Investor Class 23,530,861 55,501,925 -- -- (24,180,759) (56,979,775) Advisor Class 1,962,176 5,467,658 -- -- (1,455,208) (6,646,230) A-Class* 540 -- -- -- -- -- C-Class 1,010,196 2,625,351 -- -- (944,351) (2,570,067) CONSUMER PRODUCTS FUND Investor Class 7,166,224 7,588,839 -- 272 (7,696,600) (7,003,713) Advisor Class 2,415,256 3,619,311 -- 1,325 (2,424,263) (3,601,289) A-Class* 809 -- -- -- -- -- C-Class 780,507 1,412,449 -- 28 (856,124) (1,288,543) ELECTRONICS FUND Investor Class 36,213,407 97,206,931 -- -- (36,816,403) (97,683,758) Advisor Class 938,881 10,258,033 -- -- (879,383) (10,939,877) A-Class* 108 -- -- -- -- -- C-Class 915,411 4,994,160 -- -- (862,579) (5,027,603) ENERGY FUND Investor Class 33,428,503 43,036,804 -- 6,458 (29,886,092) (38,402,713) Advisor Class 4,889,314 6,143,268 -- 309 (4,092,680) (6,540,008) A-Class* 3,515 -- -- -- -- -- C-Class 3,033,500 3,766,553 -- 758 (2,555,245) (3,371,400) NET SHARES PURCHASED (REDEEMED) - ------------------------------------------------------ Period Ended Period Ended September 30, March 31, 2004 2004 - ------------------------------------------------------ BANKING FUND Investor Class (179,537) 212,566 Advisor Class 1,197,733 321,660 A-Class* 2,426 -- C-Class (26,158) 174,688 BASIC MATERIALS FUND Investor Class 132,130 583,297 Advisor Class (182,087) 113,119 A-Class* 2,036 -- C-Class 57,537 162,874 BIOTECHNOLOGY FUND Investor Class (649,898) (1,477,850) Advisor Class 506,968 (1,178,572) A-Class* 540 -- C-Class 65,845 55,284 CONSUMER PRODUCTS FUND Investor Class (530,376) 585,398 Advisor Class (9,007) 19,347 A-Class* 809 -- C-Class (75,617) 123,934 ELECTRONICS FUND Investor Class (602,996) (476,827) Advisor Class 59,498 (681,844) A-Class* 108 -- C-Class 52,832 (33,443) ENERGY FUND Investor Class 3,542,411 4,640,549 Advisor Class 796,634 (396,431) A-Class* 3,515 -- C-Class 478,255 395,911
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 73 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
PURCHASED THROUGH SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED - ---------------------------------------------------------------------------------------------------------------------------- Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, September 30, March 31, 2004 2004 2004 2004 2004 2004 - ---------------------------------------------------------------------------------------------------------------------------- ENERGY SERVICES FUND Investor Class 9,480,473 27,532,018 -- -- (9,230,012) (27,969,595) Advisor Class 2,457,977 4,161,536 -- -- (2,869,109) (3,313,313) A-Class* 365 -- -- -- -- -- C-Class 1,058,224 1,831,031 -- -- (914,180) (1,811,384) FINANCIAL SERVICES FUND Investor Class 14,346,467 62,655,161 -- 6,535 (16,593,446) (60,428,933) Advisor Class 2,968,213 9,592,691 -- 13,512 (4,639,113) (7,843,675) A-Class* 1,995 -- -- -- -- -- C-Class 1,767,074 3,297,493 -- 497 (1,742,963) (3,120,443) HEALTH CARE FUND Investor Class 15,327,801 40,582,183 -- -- (14,793,412) (40,452,245) Advisor Class 3,157,742 9,867,577 -- -- (3,430,011) (10,207,863) A-Class* 1,840 -- -- -- -- -- C-Class 1,215,230 5,281,351 -- -- (1,151,931) (5,091,497) INTERNET FUND Investor Class 8,002,723 10,328,468 -- -- (8,225,423) (10,062,830) Advisor Class 710,363 1,821,415 -- -- (950,393) (1,510,255) A-Class* 354 -- -- -- -- -- C-Class 330,700 809,388 -- -- (312,312) (776,125) LEISURE FUND Investor Class 4,889,425 20,010,992 -- -- (5,265,569) (19,496,218) Advisor Class 1,925,069 5,685,748 -- -- (2,592,560) (4,818,501) A-Class* 41 -- -- -- -- -- C-Class 605,380 1,193,130 -- -- (580,934) (1,118,911) PRECIOUS METALS FUND Investor Class 19,784,939 60,465,084 -- 1,027 (19,693,205) (57,926,677) Advisor Class 1,794,273 2,891,458*** -- 24*** (1,720,361) (2,843,657)*** A-Class* 1,925 -- -- -- -- -- C-Class 1,045,540 2,089,399 -- 69 (968,021) (1,754,060) REAL ESTATE FUND A-Class* 2,299 -- -- -- -- -- C-Class 1,250,791 518,598** -- -- (1,500,429) (234,654)** H-Class 21,827,913 4,553,101** -- -- (23,190,511) (1,704,781)** NET SHARES PURCHASED (REDEEMED) - -------------------------------------------------------- Period Ended Period Ended September 30, March 31, 2004 2004 - -------------------------------------------------------- ENERGY SERVICES FUND Investor Class 250,461 (437,577) Advisor Class (411,132) 848,223 A-Class* 365 -- C-Class 144,044 19,647 FINANCIAL SERVICES FUND Investor Class (2,246,979) 2,232,763 Advisor Class (1,670,900) 1,762,528 A-Class* 1,995 -- C-Class 24,111 177,547 HEALTH CARE FUND Investor Class 534,389 129,938 Advisor Class (272,269) (340,286) A-Class* 1,840 -- C-Class 63,299 189,854 INTERNET FUND Investor Class (222,700) 265,638 Advisor Class (240,030) 311,160 A-Class* 354 -- C-Class 18,388 33,263 LEISURE FUND Investor Class (376,144) 514,774 Advisor Class (667,491) 867,247 A-Class* 41 -- C-Class 24,446 74,219 PRECIOUS METALS FUND Investor Class 91,734 2,539,434 Advisor Class 73,912 47,825*** A-Class* 1,925 -- C-Class 77,519 335,408 REAL ESTATE FUND A-Class* 2,299 -- C-Class (249,638) 283,944** H-Class (1,362,598) 2,848,320**
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. ** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004. *** SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003. 74 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
PURCHASED THROUGH SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED - ------------------------------------------------------------------------------------------------------------------------- Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, September 30, March 31, 2004 2004 2004 2004 2004 2004 - ------------------------------------------------------------------------------------------------------------------------- RETAILING FUND Investor Class 11,964,653 64,015,398 -- -- (12,545,109) (63,386,483) Advisor Class 3,393,818 11,383,651 -- -- (4,334,884) (11,909,168) A-Class* 96 -- -- -- -- -- C-Class 781,149 2,829,150 -- -- (884,518) (2,632,277) TECHNOLOGY FUND Investor Class 24,789,610 62,209,751 -- -- (24,741,967) (61,881,539) Advisor Class 2,240,378 9,285,597 -- -- (2,300,984) (10,069,987) A-Class* 593 -- -- -- -- -- C-Class 3,708,373 26,695,477 -- -- (3,723,544) (26,658,185) TELECOMMUNICATIONS FUND Investor Class 7,847,669 30,293,759 -- 1,906 (7,975,827) (32,100,045) Advisor Class 688,634 2,417,651 -- 846 (834,738) (2,203,474) A-Class* 666 -- -- -- -- -- C-Class 702,163 3,064,162 -- 260 (847,610) (3,058,981) TRANSPORTATION FUND Investor Class 8,110,926 11,392,455 -- -- (7,493,236) (11,382,778) Advisor Class 2,623,472 4,599,067 -- -- (2,589,294) (5,103,040) A-Class* 1,646 -- -- -- -- -- C-Class 505,910 822,636 -- -- (484,927) (890,806) UTILITIES FUND Investor Class 7,419,196 21,344,704 -- 23,492 (7,098,525) (22,263,408) Advisor Class 1,817,908 7,048,391 -- 4,166 (1,546,975) (7,416,205) A-Class* 2,371 -- -- -- -- -- C-Class 723,187 2,580,705 -- 3,675 (786,611) (2,561,542) NET SHARES PURCHASED (REDEEMED) - ----------------------------------------------------- Period Ended Period Ended September 30, March 31, 2004 2004 - ----------------------------------------------------- RETAILING FUND Investor Class (580,456) 628,915 Advisor Class (941,066) (525,517) A-Class* 96 -- C-Class (103,369) 196,873 TECHNOLOGY FUND Investor Class 47,643 328,212 Advisor Class (60,606) (784,390) A-Class* 593 -- C-Class (15,171) 37,292 TELECOMMUNICATIONS FUND Investor Class (128,158) (1,804,380) Advisor Class (146,104) 215,023 A-Class* 666 -- C-Class (145,447) 5,441 TRANSPORTATION FUND Investor Class 617,690 9,677 Advisor Class 34,178 (503,973) A-Class* 1,646 -- C-Class 20,983 (68,170) UTILITIES FUND Investor Class 320,671 (895,212) Advisor Class 270,933 (363,648) A-Class* 2,371 -- C-Class (63,424) 22,838
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 75 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) - -------------------------------------------------------------------------------- 7. 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, 2004, the pooled cash collateral investments consisted of repurchase agreements (41.98%), commercial paper (27.65%), fixed income notes (24.41%), corporate bonds (5.95%) and mutual funds (0.01%). 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. 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, 2004 the following funds participated in securities lending and received cash collateral: VALUE OF CASH SECURITIES FUND COLLATERAL LOANED - ---- ----------- ----------- Banking Fund $ 2,386,271 $ 2,314,000 Basic Materials Fund 7,583,211 7,442,948 Biotechnology Fund 52,868,168 51,031,469 Consumer Products Fund 1,748,026 1,686,205 Electronics Fund 7,009,431 6,513,071 Energy Fund 23,463,476 22,930,472 Energy Services Fund 17,615,930 17,138,033 Financial Services Fund 6,332,886 6,170,580 Health Care Fund 8,913,225 8,641,072 Internet Fund 3,269,240 3,165,091 Leisure Fund 5,306,998 5,099,474 Precious Metals Fund 61,413,695 59,790,094 Real Estate Fund 2,919,459 2,844,206 Retailing Fund 2,309,636 2,230,654 Technology Fund 4,925,840 4,699,450 Telecommunications Fund 2,947,994 2,777,130 Transportation Fund 4,253,130 4,096,302 Utilities Fund 8,083,540 7,674,113 76 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT UNAUDITED PROXY VOTING INFORMATION - -------------------------------------------------------------------------------- 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. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 77 UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS - -------------------------------------------------------------------------------- Each Trust is served by a separate Board of Trustees composed of six members. The membership of each Board is the same. There is no stated term of service, and Trustees continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling (800) 820-0888. All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850. TRUSTEE AND OFFICER LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - -------------------- --------------------------- -------------- CARL G. VERBONCOEUR* Rydex Series Funds - 2004 100 Trustee, President (1952) Rydex Variable Trust - 2004 Rydex Dynamic Funds - 2004 Rydex ETF Trust - 2004 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and Rydex Distributors, Inc., (1997 to 2000) - -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - -------------------- --------------------------- -------------- COREY A. COLEHOUR Rydex Series Funds - 1993 100 Trustee (1945) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield Management Company --------------------------- J. KENNETH DALTON Rydex Series Funds - 1995 100 Trustee (1941) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and Investor, The Dalton Group --------------------------- JOHN O. DEMARET Rydex Series Funds - 1997 101 Trustee (1940) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 Rydex Capital Partners SphinX Fund - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------------- PATRICK T. MCCARVILLE Rydex Series Funds - 1997 100 Trustee (1942) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc. --------------------------- 78 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (CONCLUDED) - -------------------------------------------------------------------------------- LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - -------------------- --------------------------- -------------- ROGER SOMERS Rydex Series Funds - 1993 100 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine - -------------------------------------------------------------------------------- EXECUTIVE OFFICERS NAME, POSITION AND PRINCIPAL OCCUPATIONS YEAR OF BIRTH DURING PAST FIVE YEARS - ------------------ ---------------------- NICK BONOS* Vice President and Treasurer of Rydex Vice President and Treasurer (1963) Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust, and Rydex Capital Partners SPhinX Fund, 2003 to present; Senior Vice President of Rydex Fund Services, Inc., 2003 to present; Vice President of Accounting of Rydex Fund Services, Inc., 2000 to 2003; Vice President of Mutual Fund Services, State Street Corp., 1997 to 1999. MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex Vice President and Secretary (1970) Variable Trust, and Rydex Dynamic Funds, 2004 to present; Vice President of Rydex Series Funds, 1997 to present; Vice President of Rydex Variable Trust, 1998 to present; Vice President of Rydex Dynamic Funds, 1999 to present; Vice President of Rydex ETF Trust, 2002 to present; President and Trustee of Rydex Capital Partners SPhinX Fund, 2003 to present; President of Rydex Global Advisors, 2004 to present; Chief Operating Officer of Rydex Global Advisors and Rydex Distributors, Inc., 2003 to 2004. JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Funds, Rydex Variable Trust, and Rydex Assistant Secretary (1967) Dynamic Funds, 2004 to present; Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds, 2000 to present; Assistant Secretary of Rydex ETF Trust, 2002 to present. Secretary of Rydex Capital Partners SPhinX Fund, 2003 to present. Vice President of Compliance of Rydex Fund Services, Inc., 2000 to present; Vice President Fund Administration, Chase Global Funds Services Co., a division of Chase Manhattan Bank NA, 1994 to 1999. * OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST, WITHIN THE MEANING OF SECTION 2(a)(19) OF THE 1940 ACT, INASMUCH AS THIS PERSON IS AFFILIATED WITH THE ADVISOR. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 79 [RydexInvestments LOGO] Essential for modern markets(TM) 9601 Blackwell Road Suite 500 Rockville, MD 20850 800.820.0888 www.rydexinvestments.com THE RYDEX SERIES FUNDS Strategic Funds Semi-Annual Report SEPTEMBER 30, 2004 CORE EQUITY FUND SECTOR ROTATION FUND [RydexInvestments LOGO] RSTF-SEMI-0904 Essential for modern markets(TM) 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. TABLE OF CONTENTS - -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS ................................................. 2 ABOUT SHAREHOLDERS FUND'S EXPENSES ......................................... 3 FUND PROFILES .............................................................. 5 SCHEDULES OF INVESTMENTS ................................................... 7 STATEMENTS OF ASSETS AND LIABILITIES ....................................... 19 STATEMENTS OF OPERATIONS ................................................... 20 STATEMENTS OF CHANGES IN NET ASSETS ........................................ 21 FINANCIAL HIGHLIGHTS ....................................................... 22 NOTES TO FINANCIAL STATEMENTS .............................................. 23 UNAUDITED PROXY VOTING INFORMATION ......................................... 29 UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................... 30 THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1 - -------------------------------------------------------------------------------- DEAR SHAREHOLDER: The U.S. economy reached a more mature phase of the business cycle during the six-month period ending September 30, 2004. This phenomenon was marked by lower realized and forecasted gross domestic product (GDP) growth rates, reduced forecasts for future corporate earnings growth and a cumulative reported one million jobs created during the period. The Federal Reserve (Fed), observing these changes, raised the Fed Funds rate three times between June 30 and September 21. Inflation, as measured both by the Consumer Price Index (+1.7%) and Producer Price Index (+1.9%), rose during this time period. Equity markets moved in a tight trading range over the period. Most broad-based equity indices ended the period with slightly negative returns. The S&P 500(R) Index was down slightly, returning -0.18% over the period. Large-cap stocks tended to outperform small-cap stocks and the S&P 500 outperformed the S&P MidCap 400(TM) and Russell 2000(R) indices, which returned -1.15% and -2.40%, respectively. Political and economic uncertainty led investors to return to the relative safety of large-cap stocks. The S&P 500 also outperformed the Nasdaq 100 Index(R), which posted a return of -1.79%. There was good news, though. Between the end of March and September, the unemployment rate experienced a slight decline, moving from 5.6% to 5.4%. The improvement was driven in part by a 2.8% rebound in manufacturing payrolls. RYDEX CORE EQUITY FUND During the last two quarters, the S&P 500 meandered in an extremely tight trading range (+2% to -5%) before finishing the period down 0.18%. A lack of strong conviction in market direction was also seen in VIX, a measure of market volatility, as it decreased over 20% in the last half of the year. Growth outperformed value (1.5% vs. 0.3%) in the second quarter, but those roles reversed (-5.5% vs. 0.8%) in the third quarter. During the last two quarters, the Russell 3000 Value Index was up 1.12% while the Russell 3000 Growth Index was down 4.06%. Unfortunately, Rydex Core Equity Fund H-Class (-1.18%) was unable to brave all of these style influences and ended up underperforming the Russell 3000 Index (-0.59%) by 0.59%. RYDEX SECTOR ROTATION FUND On the backs of oil prices--which increased almost 40% in the last six months--the energy sector (+19.4%) greatly outperformed the S&P 500. Industrials finished a distant second, up 8.4%. Other sectors that performed well included basic materials, which was up 6.2%, telecommunication services (+5.4%) and utilities (+5.1%). Information technology and consumer staples experienced some difficult times, finishing down 7.3% and down 5.1%, respectively. Health care (-2.8%), financials (-2%) and consumer discretionary (-1.5%) also underperformed the S&P 500. Though five sectors had positive returns and five sectors had negative returns, investors should not assume that sector investing was flat. Not only was the spread between the best and worst sector (26.7%) fairly large, but the sectors that outperformed only represent 27% of the S&P 500's market capitalization. Rydex Sector Rotation Fund H-Class, which uses a momentum strategy to pick the best industries in which to invest, underperformed the S&P 500 by 3.55% despite having a large overweight in the energy sector. The underperformance was largely due to a non-trending range market that rendered momentum strategies temporarily ineffective. As always, we 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 President 2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT ABOUT SHAREHOLDERS FUND'S EXPENSES - -------------------------------------------------------------------------------- All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. As a shareholder of the fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees, administrative services, and shareholder reports, among others. Operating expenses, which are deducted from a fund's gross income, reduce the investment return of the fund. A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2004 and ending September 30, 2004. The following table illustrates your fund's costs in two ways: 1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period." Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating your retirement account, a $15 account-closing fee will be taken from the proceeds of your redemption. 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you compare your fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid during the period. In addition, certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating your retirement account, a $15 account-closing fee will be taken from the proceeds of your redemption. The example is useful in making comparisons because the Securities Exchange Commission requires all mutual funds to calculate expenses based on the 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. The calculations above assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs which may be incurred by some of the fund's classes. These costs may include, but are not limited to, sales charges (loads), redemption fees, and exchange fees. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3 ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED) - -------------------------------------------------------------------------------- You can find more information about the fund's expenses, including annual expense ratios for the past five years, in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate fund prospectus.
BEGINNING ENDING EXPENSES EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING RATIO + MARCH 31, 2004 SEPTEMBER 30, 2004 PERIOD* - -------------------------------------------------------------------------------------------- ACTUAL FUND RETURN CORE EQUITY FUND A-Class 1.56% $1,000.00 $988.20 $ 7.78 C-Class 2.30% 1,000.00 983.90 11.44 H-Class 1.55% 1,000.00 988.20 7.73 SECTOR ROTATION FUND A-Class 1.65% 1,000.00 961.70 8.11 C-Class 2.40% 1,000.00 958.30 11.78 H-Class 1.65% 1,000.00 962.70 8.12 - -------------------------------------------------------------------------------------------- HYPOTHETICAL 5% RETURN CORE EQUITY FUND A-Class 1.56% 1,000.00 1,041.98 8.02 C-Class 2.30% 1,000.00 1,038.18 11.82 H-Class 1.55% 1,000.00 1,042.03 7.97 SECTOR ROTATION FUND A-Class 1.65% 1,000.00 1,041.52 8.48 C-Class 2.40% 1,000.00 1,037.67 12.33 H-Class 1.65% 1,000.00 1,041.52 8.48
* EXPENSES ARE EQUAL TO THE FUND'S ANNULAIZED EXPENSE RATIO, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF-YEAR, THEN DIVIDED BY 365. + ANNUALIZED 4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT FUND PROFILES - -------------------------------------------------------------------------------- CORE EQUITY FUND OBJECTIVE: To provide long-term capital appreciation by investing in a broad mix of equity securities of companies representative of the total U.S. stock market. The fund pursues its investment objective by investing through a combination of quantitive value-oriented and growth-oriented startegies across the small, medium and large market capitalization ranges. [THE FOLLOWING TABLE WAS REPRESENTED BY A CHART IN THE PRINTED MATERIAL.] HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) FUTURES CONTRACTS 18.7% OTHER 8.7% CONSUMER STAPLES 5.1% ENERGY 5.3% INDUSTRIALS 9.4% HEALTH CARE 10.6% CONSUMER DISCRETIONARY 11.7% INFORMATION TECHNOLOGY 13.0% FINANCIALS 17.4% CORE EQUITY FUND "Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- A-Class March 31, 2004 C-Class September 23, 2002 H-Class September 23, 2002 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- General Electric Co. 1.1% Exxon Mobil Corp. 1.0% Pfizer, Inc. 1.0% Microsoft Corp. 0.8% Johnson & Johnson 0.7% Citigroup, Inc. 0.7% International Business Machines Corp. 0.7% Intel Corp. 0.6% Verizon Communications, Inc. 0.5% Bank of America Corp. 0.5% - -------------------------------------------------------------------------------- Top Ten Total 7.6% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5 FUND PROFILES (CONCLUDED) - -------------------------------------------------------------------------------- SECTOR ROTATION FUND OBJECTIVE: To provide long-term capital appreciation by moving its investments among different sectors or industries. [THE FOLLOWING TABLE WAS REPRESENTED BY A CHART IN THE PRINTED MATERIAL.] HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS) HEALTH CARE 7.4% CONSUMER STAPLES 7.6% INFORMATION TECHNOLOGY 9.4% FINANCIALS 14.9% ENERGY 17.3% CONSUMER DISCRETIONARY 17.5% INDUSTRIALS 23.8% SECTOR ROTATION FUND "Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments. INCEPTION DATES: - -------------------------------------------------------------------------------- A-Class March 31, 2004 C-Class March 22, 2002 H-Class March 22, 2002 TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS) - -------------------------------------------------------------------------------- Yahoo!, Inc. 5.0% Masco Corp. 2.8% Gillette Co. 2.6% WW Grainger, Inc. 2.1% American Express Co. 2.1% American Standard Cos., Inc. 1.9% Avon Products, Inc. 1.8% Fastenal Co. 1.7% MSC Industrial Direct Co. -- Class A 1.4% MBNA Corp. 1.4% - -------------------------------------------------------------------------------- Top Ten Total 22.8% - -------------------------------------------------------------------------------- "Ten Largest Holdings" excludes any temporary cash investments and equity index products. See Notes to Financial Statements. 6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- COMMON STOCKS 81.3% FINANCIALS 17.4% INSURANCE 7.6% American International Group, Inc. 4,543 $ 308,879 Allstate Corp. 4,020 192,920 Ambac Financial Group, Inc. 2,152 172,052 Prudential Financial, Inc. 3,630 170,755 Progressive Corp. 1,966 166,618 Loews Corp. 2,810 164,385 MBIA, Inc. 2,808 163,454 Lincoln National Corp. 3,385 159,095 Hartford Financial Services Group, Inc. 2,460 152,348 MetLife, Inc. 3,849 148,764 Chubb Corp.+ 2,080 146,182 Cincinnati Financial Corp. 3,462 142,704 Jefferson-Pilot Corp. 2,808 139,445 SAFECO Corp.+ 2,994 136,676 Old Republic International Corp. 5,428 135,863 UICI 3,920 128,341 Conseco, Inc.* 7,112 125,598 W.R. Berkley Corp. 2,946 124,203 AmerUs Group Co.+ 2,819 115,579 Mercury General Corp. 2,152 113,819 Stancorp Financial Group, Inc. 1,591 113,279 Unitrin, Inc. 2,710 112,655 Nationwide Financial Services 3,170 111,299 Ohio Casualty Corp.* 5,307 111,075 Reinsurance Group of America 2,689 110,787 HCC Insurance Holdings, Inc.+ 3,640 109,746 Selective Insurance Group, Inc. 2,920 108,624 American Financial Group, Inc./OH+ 3,550 106,109 Philadelphia Consolidated Holding Co.* 1,869 103,019 Transatlantic Holdings, Inc. 1,872 101,743 Delphi Financial Group, Inc. -- Class A 2,517 101,108 Horace Mann Educators Corp. 5,739 100,892 American National Insurance Co. 1,030 99,694 CNA Financial Corp.* 4,117 98,849 National Western Life Insurance Co. -- Class A* 604 98,392 Infinity Property & Casualty Corp. 3,329 98,305 Midland Co. 3,323 90,884 Safety Insurance Group, Inc. 4,028 89,542 Zenith National Insurance Corp. 2,114 89,443 Penn-America Group, Inc. 6,435 87,580 United Fire & Casualty Co. 1,500 85,995 Donegal Group, Inc. -- Class A 4,428 85,018 Independence Holding Co. 4,390 77,571 Ceres Group, Inc.* 10,573 57,623 RLI Corp. 1,414 53,096 Enstar Group, Inc.* 805 39,896 Baldwind & Lyons, Inc. -- Class B 1,099 27,739 EMC INS Group, Inc. 1,261 26,494 ----------- TOTAL INSURANCE 5,604,137 ----------- REAL ESTATE 2.2% Equity Office Properties Trust+ 6,363 173,392 Archstone-Smith Trust 4,586 145,101 CBL & Associates Properties, Inc.+ 1,866 113,733 LNR Property Corp. 1,812 112,181 Annaly Mortgage Mgt.+ 6,540 112,030 Highwoods Properties, Inc. 4,532 111,532 Trammell Crow Co.* 6,948 109,223 Lexington Corporate Properties Trust 4,935 107,139 Kramont Realty Trust 5,437 101,128 Innkeepers USA Trust 8,056 100,217 LTC Properties, Inc.+ 5,054 90,416 Capstead Mortgage Corp.+ 6,462 80,452 Friedman Billings Ramsey Group, Inc. -- Class A+ 4,117 78,635 Catellus Development Corp. 2,339 62,007 Saxon Capital, Inc.* 2,520 54,180 National Health Realty, Inc. 2,090 39,814 Camden Property Trust 187 8,639 ----------- TOTAL REAL ESTATE 1,599,819 ----------- BANKS 2.0% Bank of America Corp. 8,258 357,819 Wachovia Corp.+ 5,702 267,709 Wells Fargo & Co. 2,654 158,258 PNC Financial Services Group, Inc. 2,753 148,937 KeyCorp 4,424 139,798 Greater Bay Bancorp+ 3,122 89,757 Central Pacific Financial Corp. Co. 2,694 74,137 UnionBanCal Corp. 1,123 66,493 Santander BanCorp 1,812 45,300 Century Bancorp, Inc. 1,400 44,450 Westcorp 1,030 43,796 U.S. Bancorp 1,376 39,766 Signature Bank/New York NY* 806 21,561 ----------- TOTAL BANKS 1,497,781 ----------- THRIFTS & MORTGAGE FINANCE 1.8% Countrywide Financial Corp. 4,522 178,122 Golden West Financial Corp. 1,278 141,794 New Century Financial Corp. 2,215 133,387 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- PMI Group, Inc. 3,090 $ 125,392 R&G Financial Corp. -- Class B 2,819 108,954 Ocwen Financial Corp.*+ 10,775 98,591 Capital Crossing Bank* 3,625 92,220 United Community Financial Corp./OH 7,855 89,311 NetBank, Inc. 8,751 87,598 Fannie Mae 1,180 74,812 Berkshire Hills Bancorp, Inc. 1,712 63,258 Provident Financial Hldgs 1,900 55,100 BankAtlantic Bancorp, Inc. -- Class A 1,108 20,299 Freddie Mac 282 18,398 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 1,287,236 ----------- CAPITAL MARKETS 1.7% Merrill Lynch & Co., Inc. 4,557 226,574 Bear Stearns Cos., Inc.+ 1,872 180,030 Lehman Brothers Holdings, Inc. 2,120 169,006 State Street Corp.+ 3,146 134,366 Blackrock, Inc. 1,685 123,831 Janus Capital Group, Inc. 8,890 120,993 A.G. Edwards, Inc.+ 3,462 119,855 Nuveen Investments, Inc. -- Class A 3,837 113,575 Morgan Stanley 787 38,799 Goldman Sachs Group, Inc. 196 18,275 ----------- TOTAL CAPITAL MARKETS 1,245,304 ----------- DIVERSIFIED FINANCIALS 1.4% Citigroup, Inc. 11,320 499,438 J.P. Morgan Chase & Co. 6,628 263,331 Chicago Mercantile Exchange Holdings, Inc.+ 936 150,977 Instinet Group, Inc.* 22,740 114,382 eSpeed, Inc. -- Class A* 2,819 27,711 ----------- TOTAL DIVERSIFIED FINANCIALS 1,055,839 ----------- CONSUMER FINANCE 0.7% MBNA Corp. 7,373 185,800 Capital One Financial Corp.+ 2,085 154,081 Student Loan Corp. 749 106,171 American Express Co.+ 885 45,542 World Acceptance Corp.* 1,200 27,900 ----------- TOTAL CONSUMER FINANCE 519,494 ----------- TOTAL FINANCIALS 12,809,610 ----------- INFORMATION TECHNOLOGY 13.0% SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.3% Intel Corp. 21,698 435,262 Texas Instruments, Inc. 9,839 209,374 Applied Materials, Inc.* 10,880 179,411 National Semiconductor Corp.*+ 9,254 143,345 OmniVision Technologies, Inc.*+ 9,465 133,930 RF Micro Devices, Inc.* 19,435 123,218 International Rectifier Corp.* 3,270 112,161 Varian Semiconductor Equipment Associates, Inc.* 3,625 112,013 Silicon Laboratories, Inc.*+ 3,369 111,480 Micrel, Inc.* 9,969 103,777 DSP Group, Inc.* 4,834 101,756 Atmel Corp.*+ 27,976 101,273 MKS Instruments, Inc.* 6,545 100,269 Advanced Micro Devices, Inc.*+ 7,299 94,887 ADE Corp.* 5,538 94,340 Kulicke & Soffa Industries, Inc.* 16,313 92,168 Entegris, Inc.*+ 7,351 61,307 Teradyne, Inc.* 3,369 45,145 Analog Devices, Inc.+ 1,082 41,960 Silicon Storage Technology, Inc.* 4,935 31,436 Pixelworks, Inc.* 2,212 22,142 Fairchild Semiconductor International, Inc.* 655 9,281 Lattice Semiconductor Corp.* 1,108 5,440 ----------- TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2,465,375 ----------- SOFTWARE 2.2% Microsoft Corp. 20,347 562,595 Symantec Corp.*+ 3,047 167,219 Computer Associates International, Inc. 5,680 149,384 BMC Software, Inc.* 8,329 131,681 McAfee, Inc.*+ 6,460 129,846 Ulticom, Inc.* 8,660 127,908 Compuware Corp.* 23,658 121,839 THQ, Inc.*+ 5,126 99,752 Opnet Technologies, Inc.* 3,726 38,229 Veritas Software Corp.* 1,560 27,768 Netscout Systems, Inc.* 4,761 25,376 Activision, Inc.* 350 4,855 ----------- TOTAL SOFTWARE 1,586,452 ----------- COMPUTERS & PERIPHERALS 2.1% International Business Machines Corp. 5,618 481,687 Hewlett-Packard Co.+ 13,930 261,188 EMC Corp./MA*+ 16,235 187,352 NCR Corp.* 2,864 142,026 Dell, Inc.*+ 3,637 129,477 Overland Storage, Inc.* 8,258 115,529 Storage Technology Corp.*+ 4,492 113,468 Intergraph Corp.* 3,827 103,980 Electronics for Imaging*+ 1,410 22,898 Brocade Communications Systems, Inc.* 2,819 15,927 ----------- See Notes to Financial Statements. 8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- TOTAL COMPUTERS & PERIPHERALS $ 1,573,532 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.8% Jabil Circuit, Inc.*+ 5,895 135,585 Tektronix, Inc.+ 3,920 130,340 Molex, Inc. 4,305 128,375 Mettler Toledo International, Inc.* 2,527 119,325 Vishay Intertechnology, Inc.*+ 8,770 113,133 Avnet, Inc.*+ 6,448 110,390 Global Imaging Systems, Inc.* 3,524 109,526 Coherent, Inc.* 3,827 99,272 Park Electrochemical Corp. 4,230 89,676 Technitrol, Inc.* 4,129 80,515 CTS Corp. 6,042 76,129 TTM Technologies, Inc.* 7,955 70,720 LeCroy Corp.* 3,625 60,574 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,323,560 ----------- COMMUNICATIONS EQUIPMENT 1.7% Motorola, Inc. 12,840 231,634 Cisco Systems, Inc.* 12,291 222,467 Harris Corp.+ 2,601 142,899 Polycom, Inc.* 5,890 116,740 Aspect Communications Corp.* 11,581 114,999 Seachange International, Inc.* 4,630 74,034 CommScope, Inc.*+ 3,122 67,435 Tellabs, Inc.*+ 6,810 62,584 Qualcomm, Inc. 1,376 53,719 Anaren, Inc.* 3,398 45,737 Carrier Access Corp.* 6,344 44,091 C-COR, Inc.* 2,600 21,970 Interdigital Communications Corp.* 907 14,802 ----------- TOTAL COMMUNICATIONS EQUIPMENT 1,213,111 ----------- INTERNET SOFTWARE & SERVICES 0.9% ValueClick, Inc.* 12,543 118,406 EarthLink, Inc.*+ 10,875 112,013 AsiaInfo Holdings, Inc.* 19,928 97,249 Keynote Systems, Inc.* 6,545 92,677 Digital Insight Corp.*+ 6,344 86,469 United Online, Inc.* 7,049 67,811 Sonicwall, Inc.* 6,540 44,210 InfoSpace, Inc.* 665 31,514 ----------- TOTAL INTERNET SOFTWARE & SERVICES 650,349 ----------- IT CONSULTING & SERVICES 0.8% Fiserv, Inc.* 4,212 146,830 Sabre Holdings Corp.+ 5,054 123,975 Perot Systems Corp. -- Class A* 7,653 122,907 Acxiom Corp. 5,050 119,887 DST Systems, Inc.* 1,123 49,940 Pegasus Solutions, Inc.* 2,618 31,207 Covansys Corp.* 504 5,816 ----------- TOTAL IT CONSULTING & SERVICES 600,562 ----------- OFFICE ELECTRONICS 0.2% Xerox Corp.*+ 12,800 180,224 ----------- TOTAL OFFICE ELECTRONICS 180,224 ----------- TOTAL INFORMATION TECHNOLOGY 9,593,165 ----------- CONSUMER DISCRETIONARY 11.7% MEDIA 3.0% Comcast Corp. -- Class A*+ 9,338 263,705 Walt Disney Co. 10,100 227,755 McGraw-Hill Cos., Inc. 1,867 148,781 Lamar Advertising Co.* 2,901 120,711 Fox Entertainment Group, Inc. -- Class A* 4,325 119,976 Reader's Digest Association, Inc. 7,955 116,064 Belo Corp. -- Class A 5,054 113,917 RH Donnelley Corp.*+ 2,215 109,332 McClatchy Co. -- Class A 1,497 106,033 Hearst-Argyle Television, Inc. 4,305 105,257 Harris Interactive, Inc.* 14,904 98,217 Pulitzer, Inc. 1,913 94,502 World Wrestling Entertainment, Inc. 7,452 91,063 Lin TV Corp. -- Class A*+ 4,632 90,231 Cumulus Media, Inc. -- Class A* 6,234 89,707 Time Warner, Inc.*+ 5,211 84,106 Getty Images, Inc.* 1,497 82,784 Sinclair Broadcast Group, Inc. -- Class A 11,278 82,329 Mediacom Communications Corp.* 5,538 36,163 Viacom, Inc. -- Class B 983 32,990 Journal Communications, Inc. -- Class A 1,712 30,029 Thomas Nelson, Inc. 3 59 ----------- TOTAL MEDIA 2,243,711 ----------- SPECIALTY RETAIL 2.8% Best Buy Co., Inc. 2,830 153,499 Circuit City Stores, Inc. 8,960 137,447 TJX Cos., Inc.+ 6,193 136,494 The Gap, Inc.+ 6,653 124,411 Barnes & Noble, Inc.*+ 3,229 119,473 Home Depot, Inc. 3,047 119,442 Borders Group, Inc. 4,770 118,296 Regis Corp. 2,808 112,938 Too, Inc.* 5,840 105,529 Charming Shoppes, Inc.* 14,702 104,678 AnnTaylor Stores Corp.*+ 4,398 102,913 Burlington Coat Factory Warehouse Corp. 4,733 100,482 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- Dress Barn, Inc.* 5,538 $ 96,638 Hollywood Entertainment Corp.* 9,667 95,413 Stage Stores, Inc.* 2,745 93,934 Haverty Furniture Cos., Inc. 5,337 93,611 Pep Boys-Manny Moe & Jack+ 6,545 91,630 American Eagle Outfitters, Inc.+ 2,433 89,656 HOT Topic, Inc.*+ 3,827 65,212 Foot Locker, Inc.+ 877 20,785 Petsmart, Inc.+ 187 5,309 ----------- TOTAL SPECIALTY RETAIL 2,087,790 ----------- HOTELS RESTAURANTS & LEISURE 1.7% McDonald's Corp. 7,250 203,218 Starwood Hotels & Resorts Worldwide, Inc. 3,743 173,750 International Game Technology, Inc. 4,424 159,043 MGM Mirage, Inc.* 2,808 139,417 Prime Hospitality Corp.* 10,473 127,457 Caesars Entertainment, Inc.* 6,832 114,094 Marcus Corp. 5,035 98,032 Bluegreen Corp.* 7,855 87,426 Six Flags, Inc.* 15,105 82,171 Buffalo Wild Wings, Inc.* 1,209 33,900 Speedway Motorsports, Inc. 504 16,798 Krispy Kreme Doughnuts, Inc.*+ 1,108 14,027 ----------- TOTAL HOTELS RESTAURANTS & LEISURE 1,249,333 ----------- HOUSEHOLD DURABLES 1.3% Black & Decker Corp.+ 1,778 137,688 Ryland Group, Inc.+ 1,344 124,535 M.D.C. Holdings, Inc. 1,590 116,229 Stanley Works+ 2,710 115,256 Lennar Corp. -- Class A+ 2,289 108,957 Kimball International, Inc. -- Class B 6,742 93,579 Avatar Holdings, Inc.* 1,814 77,004 NVR, Inc.* 133 73,283 Harman International Industries, Inc. 655 70,576 Levitt Corp. -- Class A 806 18,909 Centex Corp. 359 18,115 ----------- TOTAL HOUSEHOLD DURABLES 954,131 ----------- TEXTILES & APPAREL 0.8% Nike, Inc. -- Class B+ 1,890 148,932 Jones Apparel Group, Inc. 3,556 127,305 Polo Ralph Lauren Corp. 2,994 108,892 K-Swiss, Inc. -- Class A+ 4,935 94,999 Unifirst Corp./MA 1,710 48,906 Timberland Co. -- Class A*+ 842 47,825 ----------- TOTAL TEXTILES & APPAREL 576,859 ----------- AUTO COMPONENTS 0.7% Autoliv, Inc.+ 3,057 123,503 BorgWarner, Inc. 2,524 109,264 American Axle & Manufacturing Holdings, Inc.+ 3,173 92,842 Bandag, Inc. 2,114 92,593 Cooper Tire & Rubber Co. 3,820 77,049 Dana Corp. 1,404 24,837 Lear Corp. 2 109 ----------- TOTAL AUTO COMPONENTS 520,197 ----------- AUTOMOBILES 0.6% Ford Motor Co.+ 11,895 167,125 General Motors Corp. 3,736 158,705 Monaco Coach Corp. 4,431 95,931 ----------- TOTAL AUTOMOBILES 421,761 ----------- LEISURE EQUIPMENT & PRODUCTS 0.4% Brunswick Corp. 3,180 145,517 Marvel Enterprises, Inc.*+ 7,580 110,365 Arctic Cat, Inc. 806 20,916 Leapfrog Enterprises, Inc.*+ 806 16,321 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 293,119 ----------- INTERNET & CATALOG RETAIL 0.2% 1-800-FLOWERS.com, Inc.* 11,581 96,122 Orbitz, Inc.*+ 1,007 27,391 Netflix, Inc.*+ 936 14,433 eBay, Inc.*+ 98 9,010 ----------- TOTAL INTERNET & CATALOG RETAIL 146,956 ----------- MULTILINE RETAIL 0.2% Dillard's, Inc./AR -- Class A 5,054 99,766 Kmart Holding Corp.*+ 281 24,579 ----------- TOTAL MULTILINE RETAIL 124,345 ----------- TOTAL CONSUMER DISCRETIONARY 8,618,202 ----------- HEALTH CARE 10.6% HEALTH CARE PROVIDERS & SERVICES 4.1% UnitedHealth Group, Inc. 3,331 245,628 CIGNA Corp. 2,527 175,955 WellPoint Health Networks, Inc.* 1,480 155,533 Cardinal Health, Inc. 3,539 154,902 Caremark Rx, Inc.*+ 4,817 154,481 HCA, Inc. 4,031 153,783 Aetna, Inc. 1,475 147,397 Coventry Health Care, Inc.*+ 2,625 140,096 McKesson Corp.+ 5,240 134,406 Omnicare, Inc. 4,305 122,090 Laboratory Corporation of America Holdings*+ 2,710 118,481 Community Health Systems, Inc.* 4,398 117,339 Service Corporation International/US* 18,320 113,767 WellChoice, Inc.* 2,990 111,617 Magellan Health Services, Inc.* 2,920 106,755 Andrx Corp.* 4,590 102,632 Select Medical Corp. 7,542 101,289 See Notes to Financial Statements. 10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- DaVita, Inc.* 3,182 $ 99,119 Accredo Health, Inc.* 4,117 97,038 PDI, Inc.* 3,594 97,002 Sierra Health Services, Inc.*+ 1,810 86,753 Priority Healthcare Corp. -- Class B* 4,230 85,234 LifePoint Hospitals, Inc.* 1,710 51,317 Cerner Corp.*+ 1,010 43,693 Alderwoods Group, Inc.* 2,520 24,772 eResearch Technology, Inc.* 1,309 17,449 Quest Diagnostics, Inc. 93 8,204 Amedisys, Inc.* 201 6,020 IDX Systems Corp.* 100 3,245 Kindred Healthcare, Inc.* 4 98 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 2,976,095 ----------- PHARMACEUTICALS 3.2% Pfizer, Inc. 23,297 712,888 Johnson & Johnson, Inc. 9,637 542,852 Abbott Laboratories 6,685 283,177 Mylan Laboratories, Inc.+ 8,141 146,538 Forest Laboratories, Inc.* 3,146 141,507 Merck & Co., Inc. 3,539 116,787 Perrigo Co. 5,538 113,806 Bradley Pharmaceuticals, Inc.*+ 3,927 79,914 Pozen, Inc.* 8,358 73,049 Eli Lilly & Co. 983 59,029 Par Pharmaceutical Cos., Inc.*+ 1,610 57,847 Wyeth 589 22,029 Bristol-Myers Squibb Co. 577 13,658 First Horizon Pharmaceutical* 680 13,607 Atrix Laboratories, Inc.* 101 3,100 ----------- TOTAL PHARMACEUTICALS 2,379,788 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 2.4% Becton Dickinson & Co. 2,797 144,605 Thermo Electron Corp.* 5,050 136,451 Bausch & Lomb, Inc.+ 1,942 129,046 PerkinElmer, Inc. 6,450 111,069 Conmed Corp.* 4,028 105,936 Haemonetics Corp./MA* 3,122 102,527 Matthews International Corp. -- Class A 3,021 102,351 Sola International, Inc.* 5,035 95,917 Molecular Devices Corp.* 3,927 92,559 Hologic, Inc.* 4,733 91,205 ICU Medical, Inc.* 3,424 89,161 Varian, Inc.* 2,114 80,057 Kensey Nash Corp.* 3,021 79,120 Visx, Inc.* 3,625 74,675 Dade Behring Holdings, Inc.* 1,308 72,879 Respironics, Inc.* 1,311 70,060 Sonic Innovations, Inc.* 14,299 65,203 Medtronic, Inc. 1,082 56,156 Ocular Sciences, Inc.*+ 700 33,579 Laserscope* 705 14,290 Nutraceutical International Corp.* 403 5,678 Medical Action Industries, Inc.* 90 1,497 Inamed Corp.* 4 191 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,754,212 ----------- BIOTECHNOLOGY 0.9% Applera Corp. -- Applied Biosystems Group 6,363 120,070 Charles River Laboratories International, Inc.* 2,620 119,996 Digene Corp.* 3,625 94,105 Genencor International, Inc.* 5,639 90,506 Amgen, Inc.*+ 1,475 83,603 Indevus Pharmaceuticals, Inc.* 10,875 77,104 United Therapeutics Corp.* 1,612 56,307 Orasure Technologies, Inc.* 6,847 43,136 ----------- TOTAL BIOTECHNOLOGY 684,827 ----------- TOTAL HEALTH CARE 7,794,922 ----------- INDUSTRIALS 9.5% MACHINERY 2.2% Eaton Corp. 2,620 166,134 Parker Hannifin Corp. 2,620 154,213 Deere & Co. 2,360 152,338 Cummins, Inc. 1,778 131,376 Pentair, Inc.+ 3,740 130,563 Oshkosh Truck Corp. 2,246 128,157 Briggs & Stratton Corp.+ 1,497 121,556 Kennametal, Inc. 2,618 118,203 Cascade Corp. 3,222 89,443 Reliance Steel & Aluminum Co. 2,215 87,935 Danaher Corp. 1,671 85,689 Terex Corp.* 1,910 82,894 Astec Industries, Inc.* 4,330 82,790 EnPro Industries, Inc.* 1,997 48,208 Toro Co. 705 48,151 Mueller Industries, Inc. 302 12,971 Harsco Corp. 3 135 ----------- TOTAL MACHINERY 1,640,756 ----------- AEROSPACE & DEFENSE 1.7% Boeing Co.+ 4,227 218,198 General Dynamics Corp. 1,570 160,297 Northrop Grumman Corp.+ 2,950 157,323 L-3 Communications Holdings, Inc. 2,060 138,020 Curtiss-Wright Corp. 1,913 109,481 Esterline Technologies Corp.* 3,122 95,502 Heico Corp. 5,327 94,181 Orbital Sciences Corp.* 7,250 82,795 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- Moog, Inc. -- Class A* 1,410 $ 51,183 Invision Technologies, Inc.* 1,007 45,305 Aviall, Inc.* 1,700 34,680 United Technologies Corp. 196 18,302 Armor Holdings, Inc.* 201 8,364 Engineered Support Systems, Inc. 101 4,610 ----------- TOTAL AEROSPACE & DEFENSE 1,218,241 ----------- COMMERCIAL SERVICES & SUPPLIES 1.5% Cendant Corp.+ 7,459 161,114 Cintas Corp. 2,994 125,868 ARAMARK Corp. -- Class B 4,960 119,734 IKON Office Solutions, Inc.+ 9,452 113,613 Corrections Corporation of America* 3,075 108,732 Insurance Auto Auctions, Inc.* 5,337 91,530 Bowne & Co., Inc. 6,948 90,255 Central Parking Corp. 4,924 65,095 Gevity HR, Inc. 2,819 43,356 Spherion Corp.* 5,237 40,953 Resources Connection, Inc.* 907 34,267 Universal Technical Institute, Inc.* 907 27,373 Sotheby's Holdings, Inc. -- Class A* 1,511 23,753 Compx International, Inc.* 600 9,600 Consolidated Graphics, Inc.* 200 8,380 Career Education Corp.* 281 7,989 NCO Group, Inc.* 3 81 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,071,693 ----------- INDUSTRIAL CONGLOMERATES 1.4% General Electric Co. 24,590 825,732 Alleghany Corp.* 500 136,450 3M Co. 787 62,937 ----------- TOTAL INDUSTRIAL CONGLOMERATES 1,025,119 ----------- ELECTRICAL EQUIPMENT 1.0% Emerson Electric Co. 2,753 170,383 Hubbell, Inc. -- Class B 2,620 117,454 AMETEK, Inc.+ 3,840 116,429 Woodward Governor Co. 1,612 108,794 Penn Engineering & Manufacturing Corp. 4,622 86,062 Vicor Corp. 7,855 79,414 Global Power Equipment Group, Inc.* 6,344 47,009 Thomas & Betts Corp. 907 24,326 Ultralife Batteries, Inc.* 101 1,027 Plug Power, Inc.* 1 6 ----------- TOTAL ELECTRICAL EQUIPMENT 750,904 ----------- AIR FREIGHT & COURIERS 0.5% United Parcel Service, Inc. -- Class B 2,949 223,888 CNF, Inc. 2,713 111,206 EGL, Inc.*+ 1,108 33,528 HUB Group, Inc. -- Class A* 504 18,774 ----------- TOTAL AIR FREIGHT & COURIERS 387,396 ----------- ROAD & RAIL 0.5% Burlington Northern Santa Fe Corp. 5,335 204,384 Kansas City Southern* 6,948 105,401 Overnite Corp. 1,612 50,665 SCS Transportation, Inc.* 1,108 20,986 ----------- TOTAL ROAD & RAIL 381,436 ----------- TRADING COMPANIES & DISTRIBUTORS 0.4% MSC Industrial Direct Co. -- Class A 3,462 117,985 Hughes Supply, Inc. 3,744 112,582 Watsco, Inc. 400 12,012 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 242,579 ----------- BUILDING PRODUCTS 0.2% Masco Corp.+ 4,372 150,965 Apogee Enterprises, Inc.+ 201 2,599 ----------- TOTAL BUILDING PRODUCTS 153,564 ----------- CONSTRUCTION & ENGINEERING 0.1% Dycom Industries, Inc.* 1,600 45,424 Comfort Systerms USA, Inc.* 6,142 40,537 ----------- TOTAL CONSTRUCTION & ENGINEERING 85,961 ----------- TOTAL INDUSTRIALS 6,957,649 ----------- ENERGY 5.3% OIL & GAS 4.7% Exxon Mobil Corp. 14,858 718,087 ConocoPhillips 3,182 263,629 Marathon Oil Corp. 5,212 215,151 ChevronTexaco Corp. 3,734 200,292 Valero Energy Corp.+ 2,430 194,910 Anadarko Petroleum Corp. 2,458 163,113 Devon Energy Corp. 2,261 160,554 Burlington Resources, Inc.+ 3,920 159,936 Amerada Hess Corp. 1,780 158,420 Sunoco, Inc.+ 2,110 156,098 Ashland, Inc. 2,433 136,443 Noble Energy, Inc. 2,340 136,281 Overseas Shipholding Group, Inc. 2,517 124,944 Frontier Oil Corp. 4,834 114,131 Remington Oil & Gas Corp.* 3,927 103,084 Tesoro Petroleum Corp.*+ 2,749 81,178 Harvest Natural Resources, Inc.* 4,230 70,218 Swift Energy Co.* 2,819 67,543 Whiting Petroleum Corp.* 2,114 64,265 Pioneer Natural Resources Co.+ 1,580 54,478 Newfield Exploration Co.* 650 39,806 Petroleum Development Corp.* 705 30,893 See Notes to Financial Statements. 12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- Giant Industries, Inc.* 1,209 $ 29,379 Meridian Resource Corp.* 2,618 23,117 Resource America, Inc. -- Class A 810 19,108 Atlas America, Inc.* 101 2,199 ----------- TOTAL OIL & GAS 3,487,257 ----------- ENERGY EQUIPMENT & SERVICES 0.6% BJ Services Co.+ 3,275 171,643 Maverick Tube Corp.*+ 3,726 114,798 Matrix Service Co.* 8,660 44,339 Universal Compression Holdings, Inc.* 1,110 37,818 Patterson-UTI Energy, Inc. 1,123 21,415 National-Oilwell, Inc.* 374 12,290 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 402,303 ----------- TOTAL ENERGY 3,889,560 ----------- CONSUMER STAPLES 5.1% FOOD PRODUCTS 1.2% Sara Lee Corp. 6,960 159,106 H.J. Heinz Co. 3,723 134,102 Smithfield Foods, Inc.* 4,770 119,250 Del Monte Foods Co.* 10,668 111,907 Tyson Foods, Inc. -- Class A 6,820 109,256 Pilgrim's Pride Corp.+ 3,279 88,795 Seaboard Corp. 101 59,181 Cal-Maine Foods, Inc.+ 4,129 45,295 M&F Worldwide Corp.* 3,323 43,232 Sanderson Farms, Inc. 810 27,095 Alico, Inc. 1 43 ----------- TOTAL FOOD PRODUCTS 897,262 ----------- BEVERAGES 1.1% Coca-Cola Co. 3,244 129,922 PepsiCo, Inc. 2,440 118,706 Adolph Coors Co. -- Class B 1,680 114,106 Coca-Cola Enterprises, Inc. 5,700 107,730 PepsiAmericas, Inc. 5,521 105,451 Robert Mondavi -- Class A* 2,517 98,591 Pepsi Bottling Group, Inc.+ 3,088 83,839 Boston Beer Co., Inc. -- Class A* 2,004 50,501 Anheuser-Busch Cos., Inc. 196 9,790 ----------- TOTAL BEVERAGES 818,636 ----------- PERSONAL PRODUCTS 0.8% Gillette Co. 5,211 217,507 Avon Products, Inc.+ 3,637 158,864 Estee Lauder Cos., Inc. -- Class A 2,527 105,629 NBTY, Inc.* 3,369 72,636 ----------- TOTAL PERSONAL PRODUCTS 554,636 ----------- HOUSEHOLD PRODUCTS 0.8% Procter & Gamble Co. 4,862 263,132 Kimberly-Clark Corp. 2,916 188,344 Energizer Holdings, Inc.*+ 2,150 99,115 ----------- TOTAL HOUSEHOLD PRODUCTS 550,591 ----------- FOOD & DRUG RETAILING 0.7% Wal-Mart Stores, Inc. 4,862 258,658 Costco Wholesale Corp.+ 3,736 155,268 Arden Group, Inc. 1,007 85,595 CVS Corp. 589 24,815 Albertson's, Inc.+ 1,030 24,648 ----------- TOTAL FOOD & DRUG RETAILING 548,984 ----------- TOBACCO 0.5% Altria Group, Inc. 7,569 356,046 ----------- TOTAL TOBACCO 356,046 ----------- TOTAL CONSUMER STAPLES 3,726,155 ----------- MATERIALS 3.8% CHEMICALS 1.3% Dow Chemical Co. 4,915 222,060 Monsanto Co. 4,492 163,599 Rohm & Haas Co.+ 3,650 156,840 NL Industries, Inc. 6,445 118,008 OM Group, Inc.*+ 3,122 114,140 Octel Corp. 3,021 64,166 Georgia Gulf Corp. 1,410 62,872 Terra Industries, Inc.*+ 5,035 43,603 Kronos Worldwide, Inc. 947 37,587 EI Du Pont de Nemours & Co. 98 4,194 NewMarket Corp.* 104 2,172 ----------- TOTAL CHEMICALS 989,241 ----------- METALS & MINING 1.2% Alcoa, Inc. 5,580 187,432 Phelps Dodge Corp. 1,870 172,096 Nucor Corp.+ 1,680 153,502 Southern Peru Copper Corp. 2,620 135,349 Carpenter Technology Corp. 2,076 99,108 Metal Management, Inc.* 5,035 91,536 Steel Dynamics, Inc.+ 504 19,465 Century Aluminum Co.* 600 16,638 Oregon Steel Mills, Inc.* 504 8,382 United States Steel Corp.+ 187 7,035 ----------- TOTAL METALS & MINING 890,543 ----------- PAPER & FOREST PRODUCTS 0.9% Georgia-Pacific Corp.+ 4,305 154,765 Weyerhaeuser Co. 2,250 149,580 MeadWestvaco Corp. 4,398 140,296 Louisiana-Pacific Corp.+ 4,921 127,700 Potlatch Corp.+ 2,618 122,549 ----------- TOTAL PAPER & FOREST PRODUCTS 694,890 ----------- CONTAINERS & PACKAGING 0.2% Longview Fibre Co. 6,545 99,811 Chesapeake Corp. 1,309 31,442 ----------- TOTAL CONTAINERS & PACKAGING 131,253 ----------- See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- CORE EQUITY FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- CONSTRUCTION MATERIALS 0.2% Texas Industries, Inc.+ 2,316 $ 119,135 ----------- TOTAL CONSTRUCTION MATERIALS 119,135 ----------- TOTAL MATERIALS 2,825,062 ----------- UTILITIES 3.2% ELECTRIC UTILITIES 2.2% PG&E Corp.* 6,170 187,568 Progress Energy, Inc.+ 3,931 166,439 DTE Energy Co.+ 3,650 153,993 FirstEnergy Corp.+ 3,530 145,012 American Electric Power Co., Inc.+ 4,300 137,428 Allegheny Energy, Inc.* 7,580 120,977 Pinnacle West Capital Corp. 2,901 120,392 PNM Resources, Inc. 5,136 115,611 Idacorp, Inc. 3,625 105,343 El Paso Electric Co.* 6,445 103,571 Texas Genco Holdings, Inc. 2,177 101,557 UIL Holding Corp. 1,960 96,412 CenterPoint Energy, Inc. 7,000 72,520 ----------- TOTAL ELECTRIC UTILITIES 1,626,823 ----------- MULTI-UTILITIES 0.8% Constellation Energy Group, Inc.+ 3,640 145,018 Energen Corp. 2,430 125,266 National Fuel Gas Co. 4,212 119,326 NRG Energy, Inc.* 4,117 110,912 Avista Corp. 5,639 102,066 ----------- TOTAL MULTI-UTILITIES 602,588 ----------- GAS UTILITIES 0.2% KeySpan Corp.+ 3,743 146,726 ----------- TOTAL GAS UTILITIES 146,726 ----------- TOTAL UTILITIES 2,376,137 ----------- TELECOMMUNICATION SERVICES 1.7% DIVERSIFIED TELECOMMUNICATION SERVICES 1.1% Verizon Communications, Inc. 9,929 391,004 AT&T Corp.+ 8,748 125,271 SBC Communications, Inc. 4,620 119,889 North Pittsburgh Systems, Inc. 4,632 95,929 BellSouth Corp. 983 26,659 PTEK Holdings, Inc.* 2,004 17,174 Shenandoah Telecommunications Co. 519 13,292 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 789,218 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.6% Nextel Communications, Inc. -- Class A* 7,373 175,772 Spectrasite, Inc.* 2,620 121,830 U.S. Cellular Corp.* 2,620 113,053 Metrocall Holdings, Inc.*+ 504 32,684 Arch Wireless, Inc. -- Class A* 907 26,058 @Road, Inc.* 4,431 18,699 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 488,096 ----------- TOTAL TELECOMMUNICATION SERVICES 1,277,314 ----------- TOTAL COMMON STOCKS (Cost $56,223,584) 59,867,776 ----------- FACE AMOUNT ------ REPURCHASE AGREEMENTS 17.7% Repurchase Agreement (Note 5) 1.72% due 10/01/04 $ 77,786 77,786 1.71% due 10/01/04 6,499,427 6,499,427 1.70% due 10/01/04 6,499,427 6,499,427 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $13,076,640) 13,076,640 ------------ SECURITIES LENDING COLLATERAL 9.1% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 8) 6,737,564 6,737,564 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $6,737,564) 6,737,564 ------------ TOTAL INVESTMENTS 108.1% (Cost $76,037,788) $ 79,681,980 ============ LIABILITIES IN EXCESS OF OTHER ASSETS - (8.1)% $ (6,003,414) ============ NET ASSETS - 100.0% $ 73,678,566 - -------------------------------------------------------------------------------- See Notes to Financial Statements. 14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- UNREALIZED GAIN (LOSS) CONTRACTS (NOTE 1) - -------------------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2004 Russell 2000 Index Futures Contracts (Aggregate Market Value of Contracts $4,005,750) 14 $ 24,126 December 2004 S&P MidCap 400 Index Futures Contracts (Aggregate Market Value of Contracts $4,453,500) 15 15,376 December 2004 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $5,293,875) 95 (49,535) -------- (TOTAL AGGREGATE MARKET VALUE OF CONTRACTS $13,753,125) $(10,033) ======== * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 -- SEE NOTE 8. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15 SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2004 - -------------------------------------------------------------------------------- SECTOR ROTATION FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- COMMON STOCKS 98.0% INDUSTRIALS 23.8% BUILDING PRODUCTS 8.3% Masco Corp.+ 93,800 $ 3,238,914 American Standard Cos., Inc.* 57,100 2,221,761 Simpson Manufacturing Co., Inc.+ 14,500 916,400 York International Corp.+ 23,699 748,651 Lennox International, Inc. 45,199 675,273 USG Corp.*+ 36,800 670,864 NCI Building Systems, Inc.* 19,000 606,100 Griffon Corp.*+ 28,600 603,460 ------------ TOTAL BUILDING PRODUCTS 9,681,423 ------------ TRADING COMPANIES & DISTRIBUTORS 7.9% W.W. Grainger, Inc. 41,700 2,404,005 Fastenal Co.+ 34,200 1,969,920 MSC Industrial Direct Co. -- Class A 48,900 1,666,512 Hughes Supply, Inc. 43,200 1,299,024 Applied Industrial Technologies, Inc. 24,800 886,352 Watsco, Inc. 29,500 885,885 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 9,111,698 ------------ AEROSPACE & DEFENSE 7.6% United Technologies Corp. 12,400 1,157,912 Boeing Co.+ 21,700 1,120,154 Honeywell International, Inc. 26,400 946,704 Lockheed Martin Corp. 14,600 814,388 General Dynamics Corp. 7,700 786,170 Raytheon Co.+ 18,900 717,822 Northrop Grumman Corp.+ 13,100 698,623 L-3 Communications Holdings, Inc. 7,600 509,200 Rockwell Collins, Inc. 11,800 438,252 Precision Castparts Corp.+ 5,500 330,275 Goodrich Corp. 10,000 313,600 United Defense Industries, Inc.* 6,800 271,932 Empresa Brasileira De Aeronautica SA 10,300 271,920 Alliant Techsystems, Inc.* 3,700 223,850 Engineered Support Systems, Inc.+ 3,500 159,740 ------------ TOTAL AEROSPACE & DEFENSE 8,760,542 ------------ TOTAL INDUSTRIALS 27,553,663 ------------ CONSUMER DISCRETIONARY 17.6% HOTELS RESTAURANTS & LEISURE 9.9% Carnival Corp.+ 28,010 1,324,593 McDonald's Corp. 46,220 1,295,547 Starbucks Corp.*+ 26,700 1,213,782 Marriott International, Inc. -- Class A+ 16,390 851,624 Yum! Brands, Inc.+ 20,740 843,288 International Game Technology, Inc. 22,960 825,412 Starwood Hotels & Resorts Worldwide, Inc.+ 16,200 752,004 Royal Caribbean Cruises Ltd.+ 17,010 741,636 Hilton Hotels Corp. 37,820 712,529 MGM Mirage, Inc.* 12,650 628,073 Harrah's Entertainment, Inc.+ 10,730 568,475 Darden Restaurants, Inc. 20,440 476,661 Wendy's International, Inc. 13,260 445,536 Outback Steakhouse, Inc. 8,910 370,032 Brinker International, Inc.*+ 10,730 334,240 ------------ TOTAL HOTELS RESTAURANTS & LEISURE 11,383,432 ------------ TEXTILES & APPAREL 7.7% Nike, Inc. -- Class B 18,600 1,465,680 Coach, Inc.* 22,000 933,240 VF Corp. 16,000 791,200 Jones Apparel Group, Inc. 19,800 708,840 Liz Claiborne, Inc. 17,700 667,644 Polo Ralph Lauren Corp. 17,600 640,112 Fossil, Inc.* 16,400 507,416 Columbia Sportswear Co.* 9,000 490,500 Reebok International Ltd. 13,300 488,376 Timberland Co. -- Class A* 8,300 471,440 Quiksilver, Inc.* 15,100 383,842 Tommy Hilfiger Corp.* 35,700 352,359 Kellwood Co. 9,200 335,340 Wolverine World Wide, Inc.+ 13,200 332,640 Warnaco Group, Inc.* 14,701 326,803 ------------ TOTAL TEXTILES & APPAREL 8,895,432 ------------ TOTAL CONSUMER DISCRETIONARY 20,278,864 ------------ ENERGY 17.3% ENERGY EQUIPMENT & SERVICES 8.8% Schlumberger Ltd. 23,300 1,568,323 Baker Hughes, Inc.+ 22,400 979,328 Halliburton Co. 28,400 956,796 Transocean, Inc.*+ 24,600 880,188 BJ Services Co.+ 13,200 691,812 GlobalSantaFe Corp. 21,700 665,105 Tenaris SA -- SP ADR 13,500 615,465 Weatherford International Ltd.* 12,000 612,240 Smith International, Inc.*+ 9,100 552,643 Diamond Offshore Drilling+ 16,200 534,438 ENSCO International, Inc. 15,900 519,453 Precision Drilling Corp.*+ 7,600 437,000 Patterson-UTI Energy, Inc. 22,500 429,075 See Notes to Financial Statements. 16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2004 - -------------------------------------------------------------------------------- SECTOR ROTATION FUND MARKET VALUE SHARES (NOTE 1) - -------------------------------------------------------------------------------- Noble Corp.*+ 8,400 $ 377,580 Nabors Industries Ltd.*+ 6,700 317,245 ----------- TOTAL ENERGY EQUIPMENT & Services 10,136,691 ----------- OIL & GAS 8.5% Exxon Mobil Corp. 29,100 1,406,403 BP PLC -- SP ADR 18,600 1,070,058 Total SA -- SP ADR+ 8,600 878,662 ChevronTexaco Corp. 15,800 847,512 Royal Dutch Petroleum Co. 14,300 737,880 ENI-Ente Nazionale Idrocarburi -- SP ADR+ 6,300 707,490 PetroChina Co. Ltd. -- SP ADR+ 13,100 704,256 Shell Transport & Trading Co. PLC -- SP ADR 13,600 605,336 ConocoPhillips 7,000 579,950 Petroleo Brasiliero SA -- Petrobras+ 13,200 465,300 China Petroleum & Chemical Corp. -- SP ADR 9,900 406,395 Occidental Petroleum Corp. 6,600 369,138 Repsol YPF SA -- SP ADR 16,500 361,680 EnCana Corp. 7,600 351,880 Imperial Oil Ltd. 6,500 336,115 ----------- TOTAL OIL & GAS 9,828,055 ----------- TOTAL ENERGY 19,964,746 ----------- FINANCIALS 14.9% CONSUMER FINANCE 7.6% American Express Co. 46,300 2,382,598 MBNA Corp. 65,000 1,638,000 SLM Corp. 28,000 1,248,800 Capital One Financial Corp. 16,200 1,197,180 Providian Financial Corp.* 40,300 626,262 AmeriCredit Corp.* 25,800 538,704 First Marblehead Corp.* 10,700 496,480 MoneyGram International, Inc. 21,400 365,512 Cash America International, Inc. 10,100 247,046 ----------- TOTAL CONSUMER FINANCE 8,740,582 ----------- REAL ESTATE 7.3% Simon Property Group, Inc.+ 13,300 713,279 Equity Office Properties Trust+ 25,700 700,325 Equity Residential 20,300 629,300 Vornado Realty Trust 9,500 595,460 Rouse Co. 8,600 575,168 General Growth Properties, Inc.+ 18,500 573,500 Plum Creek Timber (REIT) Co., Inc. 16,100 563,983 ProLogis 15,500 546,220 Archstone-Smith Trust 17,200 544,208 Public Storage, Inc.+ 10,800 535,140 Boston Properties, Inc. 9,600 531,744 KIMCO Realty Corp. 10,200 523,260 Host Marriott Corp.*+ 35,200 493,856 Brookfield Properties Corp. 15,300 493,578 Duke Realty Corp. 14,000 464,800 ----------- TOTAL REAL ESTATE 8,483,821 ----------- TOTAL FINANCIALS 17,224,403 ----------- INFORMATION TECHNOLOGY 9.4% INTERNET SOFTWARE & SERVICES 8.9% Yahoo!, Inc.*+ 170,068 5,767,006 VeriSign, Inc.*+ 63,630 1,264,964 WebEx Communications, Inc.* 35,500 774,610 EarthLink, Inc.*+ 66,560 685,568 Open Text Corp.*+ 22,860 394,564 RealNetworks, Inc.*+ 75,550 352,063 DoubleClick, Inc.*+ 53,100 313,821 PEC Solutions, Inc.* 24,380 285,734 United Online, Inc.* 26,750 257,335 Ariba, Inc.* 20,600 192,404 ----------- TOTAL INTERNET SOFTWARE & SERVICES 10,288,069 ----------- SOFTWARE 0.5% Internet Security Systems, Inc.*+ 31,150 529,550 ----------- TOTAL SOFTWARE 529,550 ----------- TOTAL INFORMATION TECHNOLOGY 10,817,619 ----------- CONSUMER STAPLES 7.6% PERSONAL PRODUCTS 7.6% Gillette Co. 70,800 2,955,192 Avon Products, Inc.+ 47,800 2,087,904 Estee Lauder Cos., Inc. -- Class A 31,800 1,329,240 Alberto-Culver Co. -- Class B 18,000 782,640 Nu Skin Enterprises, Inc.+ 23,800 559,538 NBTY, Inc.* 17,400 375,144 Chattem, Inc.* 11,500 370,875 Elizabeth Arden, Inc.* 14,000 294,840 ----------- TOTAL PERSONAL PRODUCTS 8,755,373 ----------- TOTAL CONSUMER STAPLES 8,755,373 ----------- HEALTH CARE 7.4% HEALTH CARE EQUIPMENT & SUPPLIES 7.4% Medtronic, Inc. 25,200 1,307,880 Boston Scientific Corp.*+ 24,300 965,439 Alcon, Inc. 9,400 753,880 Baxter International, Inc. 21,800 701,088 Guidant Corp.+ 10,100 667,004 Stryker Corp. 13,300 639,464 Zimmer Holdings, Inc.* 7,800 616,512 Biomet, Inc.+ 12,300 576,624 See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17 SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2004 - -------------------------------------------------------------------------------- SECTOR ROTATION FUND MARKET VALUE SHARES (NOTE 1) - ------------------------------------------------------------------------------- Becton Dickinson & Co. 10,500 $ 542,850 St. Jude Medical, Inc.* 7,100 534,417 C.R. Bard, Inc. 6,800 385,084 DENTSPLY International, Inc. 6,600 342,804 Varian Medical Systems, Inc.*+ 9,700 335,329 Hillenbrand Industries, Inc. 4,200 212,226 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 8,580,601 ------------ TOTAL HEALTH CARE 8,580,601 ------------ TOTAL COMMON STOCKS (Cost $103,709,626) 113,175,269 ------------ FACE AMOUNT ------ REPURCHASE AGREEMENTS 2.0% Repurchase Agreement (Note 5) 1.71% due 10/01/04 $ 2,346,666 2,346,666 ------------ Total Repurchase Agreements (Cost $2,346,666) 2,346,666 ------------ SECURITIES LENDING COLLATERAL 18.1% Investment in Securities Lending Short Term Investment Portfolio Held By U.S. Bank (Note 8) 20,910,274 20,910,274 ------------ TOTAL SECURITIES LENDING COLLATERAL (Cost $20,910,274) 20,910,274 ------------ TOTAL INVESTMENTS 118.1% (Cost $126,966,566) $136,432,209 ============ LIABILITIES IN EXCESS OF OTHER ASSETS - (18.1)% $(20,867,942) ============ NET ASSETS - 100.0% $115,564,267 * NON-INCOME PRODUCING SECURITIES. + ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2004 -- SEE NOTE 8. ADR--AMERICAN DEPOSITORY RECEIPT. REIT -- REAL ESTATE INVESTMENT TRUST. See Notes to Financial Statements. 18 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2004 - --------------------------------------------------------------------------------
CORE SECTOR EQUITY ROTATION FUND FUND - ------------------------------------------------------------------------------------ ASSETS Securities at Value* (Notes 1, 2, 5 and 8) $ 79,681,980 $ 136,432,209 Segregated Cash with Broker 682,000 -- Cash in Custodian Bank 171 4,543 Receivable for Futures Contracts Settlement (Note 1) 25,163 -- Receivable for Securities Sold (Note 1) -- 8,775,349 Receivable for Shares Purchased 69,516 508,369 Investment Income Receivable (Note 1) 67,559 118,137 Other Assets 20,140 -- - ------------------------------------------------------------------------------------ TOTAL ASSETS 80,546,529 145,838,607 ==================================================================================== LIABILITIES Payable upon Return of Securities Loaned (Note 8) 6,737,564 20,910,274 Payable for Securities Purchased (Note 1) -- 8,734,642 Liability for Shares Redeemed 44,627 464,494 Investment Advisory Fee Payable (Note 3) 37,890 84,003 Transfer Agent Fee Payable (Note 3) 14,001 23,334 Distribution and Service Fee Payable (Note 3) 7,386 12,794 Portfolio Accounting Fee Payable (Note 3) 5,601 9,334 Custody Fees Payable 2,239 2,571 Other Liabilities 18,655 32,894 - ------------------------------------------------------------------------------------ TOTAL LIABILITIES 6,867,963 30,274,340 - ------------------------------------------------------------------------------------ NET ASSETS $ 73,678,566 $ 115,564,267 ==================================================================================== ANALYSIS OF NET ASSETS Paid-In Capital $ 65,961,825 $ 122,785,774 Undistributed Net Investment Loss (152,547) (460,637) Accumulated Net Realized Gain (Loss) on Investments, and Futures Contracts 4,235,129 (16,226,513) Net Unrealized Appreciation on Investments, and Futures Contracts 3,634,159 9,465,643 - ------------------------------------------------------------------------------------ NET ASSETS $ 73,678,566 $ 115,564,267 ==================================================================================== A-Class $ 567,622 $ 1,646,976 C-Class 27,707,697 51,358,846 H-Class 45,403,247 62,558,445 SHARES OUTSTANDING A-Class 39,781 163,807 C-Class 1,972,971 5,201,794 H-Class 3,182,171 6,218,855 NET ASSET VALUES A-Class $ 14.27 $ 10.05 A-Class Maximum Offering Price Per Share** 14.98 10.55 C-Class 14.04 9.87 H-Class 14.27 10.06
* THE COST OF SECURITIES AT VALUE IS $76,037,788 AND $126,966,566, RESPECTIVELY. ** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE. See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19 STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2004 - --------------------------------------------------------------------------------
CORE SECTOR EQUITY ROTATION FUND FUND - ------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (Note 1) $ 31,485 $ 10,678 Interest from Securities Lending, net (Note 8) 3,136 10,576 Dividends, Net of Foreign Tax Withheld* (Note 1) 419,886 745,880 - ------------------------------------------------------------------------------------- Total Income 454,507 767,134 ===================================================================================== EXPENSES Advisory Fees (Note 3) 262,699 560,520 Transfer Agent and Administrative Fees (Note 3) 82,517 155,700 Distribution & Service Fees (Note 3): A-Class 324 1,395 C-Class 126,282 261,307 H-Class 50,623 88,978 Accounting Fees (Note 3) 33,007 62,280 Trustees' Fees 1,035 1,998 Custodian Fees 8,554 16,857 Miscellaneous 42,013 78,736 - ------------------------------------------------------------------------------------- Total Expenses 607,054 1,227,771 - ------------------------------------------------------------------------------------- Net Investment Loss (152,547) (460,637) ===================================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1) Net Realized Gain (Loss) on: Investment Securities 2,382,573 (2,657,116) Futures Contracts (591,433) -- - ------------------------------------------------------------------------------------- Total Net Realized Gain (Loss) 1,791,140 (2,657,116) - ------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities (3,197,805) (3,696,520) Futures Contracts (59,936) -- - ------------------------------------------------------------------------------------- Net Change in Unrealized Appreciation (Depreciation) (3,257,741) (3,696,520) - ------------------------------------------------------------------------------------- Net Loss on Investments (1,466,601) (6,353,636) - ------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS FROM OPERATIONS $(1,619,148) $(6,814,273) =====================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0 WITH AND $29,011, REPECTIVELY. See Notes to Financial Statements. 20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
CORE EQUITY FUND SECTOR ROTATION FUND - ---------------------------------------------------------------------------------------------------------------------------------- PERIOD PERIOD PERIOD PERIOD ENDED ENDED ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2004+ 2004 2004+ 2004 - ---------------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net Investment Loss $ (152,547) $ (180,888) $ (460,637) $ (1,091,423) Net Realized Gain (Loss) on Investments and Futures Contracts 1,791,140 8,570,734 (2,657,116) 10,606,545 Net Change in Unrealized Appreciation (Depreciation) on Investments and Futures Contracts (3,257,741) 6,754,941 (3,696,520) 13,042,404 - ---------------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Operations (1,619,148) 15,144,787 (6,814,273) 22,557,526 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1) Net Investment Income A-Class -- -- -- -- C-Class -- (1,058) -- -- H-Class -- (2,308) -- -- Realized Gain On Investment A-Class -- -- -- -- C-Class -- (156,031) -- -- H-Class -- (340,409) -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Total Distributions to Shareholders -- (499,806) -- -- ================================================================================================================================== SHARE TRANSACTIONS PROCEEDS FROM SHARES PURCHASED A-Class 1,451,631 1,000* 2,913,491 4,838* C-Class 10,171,873 19,137,844 13,362,678 48,453,171 H-Class 33,273,590 92,881,600 30,430,852 100,363,947 VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT A-Class -- -- -- -- C-Class -- 149,346 -- -- H-Class -- 288,340 -- -- COST OF SHARES REDEEMED A-Class (863,139) -- (1,243,656) -- C-Class (5,883,541) (5,848,388) (18,601,398) (14,627,510) H-Class (29,232,976) (79,161,454) (50,356,930) (63,262,000) ================================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS 8,917,438 27,448,288 (23,494,963) 70,932,446 - ---------------------------------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets 7,298,290 42,093,269 (30,309,236) 93,489,972 NET ASSETS--BEGINNING OF PERIOD 66,380,276 24,287,007 145,873,503 52,383,531 ================================================================================================================================== NET ASSETS--END OF PERIOD $ 73,678,566 $ 66,380,276 $ 115,564,267 $ 145,873,503 ==================================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004. + UNAUDITED See Notes to Financial Statements. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 21 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.
NET REALIZED NET INCREASE NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS VALUE, INVESTMENT UNREALIZED IN NET AS FROM NET FROM NET BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED TOTAL OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS - ----------------------------------------------------------------------------------------------------------------------------------- CORE EQUITY FUND A-CLASS SEPTEMBER 30, 2004@ $14.44 $ -- $(.17) $(.17) $ -- $ -- $ -- MARCH 31, 2004* 14.44 -- -- -- -- -- -- CORE EQUITY FUND C-CLASS SEPTEMBER 30, 2004@ 14.27 (.06) (.17) (.23) -- -- -- March 31, 2004 10.11 (.11) 4.38 4.27 -- (.11) (.11) March 31, 2003* 10.00 (.03) .14 .11 -- -- -- CORE EQUITY FUND H-CLASS SEPTEMBER 30, 2004@ 14.44 (.01) (.16) (.17) -- -- -- MARCH 31, 2004 10.15 (.01) 4.41 4.40 -- (.11) (.11) March 31, 2003* 10.00 .01 .14 .15 -- -- -- SECTOR ROTATION FUND A-CLASS SEPTEMBER 30, 2004@ 10.45 (.01) (.39) (.40) -- -- -- March 31, 2004* 10.45 -- -- -- -- -- -- SECTOR ROTATION FUND C-CLASS SEPTEMBER 30, 2004@ 10.30 (.06) (.37) (.43) -- -- -- March 31, 2004 7.53 (.16) 2.93 2.77 -- -- -- March 31, 2003 9.99 (.07) (2.39) (2.46) -- -- -- March 31, 2002* 10.00 -- (.01) (.01) -- -- -- SECTOR ROTATION FUND H-CLASS SEPTEMBER 30, 2004@ 10.45 (.02) (.37) (.39) -- -- -- March 31, 2004 7.58 (.09) 2.96 2.87 -- -- -- March 31, 2003 9.99 (.01) (2.40) (2.41) -- -- -- March 31, 2002* 10.00 -- (.01) (.01) -- -- -- RATIOS TO AVERAGE NET ASSETS: ------------------- NET INCREASE NET ASSET NET NET ASSETS, (DECREASE) IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF NET ASSET END OF INVESTMENT TOTAL INCOME TURNOVER PERIOD (000'S VALUE PERIOD RETURN EXPENSES (LOSS) RATE*** OMITTED) - ---------------------------------------------------------------------------------------------------------------------------------- CORE EQUITY FUND A-CLASS SEPTEMBER 30, 2004@ $(.17) $14.27 (1.18)% 1.56%** 0.05%** 122% $ 568 MARCH 31, 2004* -- 14.44 0.00% 0.00%**# 0.00%** 226% 1 CORE EQUITY FUND C-CLASS SEPTEMBER 30, 2004@ (.23) 14.04 (1.61)% 2.30%** (0.91)%** 122% 27,708 March 31, 2004 4.16 14.27 42.29% 2.24% (0.87)% 226% 23,811 March 31, 2003* .11 10.11 1.10% 2.41%** (0.48)%** 123% 5,771 CORE EQUITY FUND H-CLASS SEPTEMBER 30, 2004@ (.17) 14.27 (1.18)% 1.55%** (0.18)%** 122% 45,403 MARCH 31, 2004 4.29 14.44 43.41% 1.49% (0.11)% 226% 42,568 March 31, 2003* .15 10.15 1.50% 1.67%** 0.22%** 123% 18,516 SECTOR ROTATION FUND A-CLASS SEPTEMBER 30, 2004@ (.40) 10.05 (3.83)% 1.65%** (0.31)%** 169% 1,647 March 31, 2004* -- 10.45 0.00% 0.00%**# 0.00%** 253% 5 SECTOR ROTATION FUND C-CLASS SEPTEMBER 30, 2004@ (.43) 9.87 (4.17)% 2.40%** (1.15)%** 169% 51,359 March 31, 2004 2.77 10.30 36.79% 2.41% (1.66)% 253% 59,192 March 31, 2003 (2.46) 7.53 (24.62)% 2.44% (0.83)% 451% 17,538 March 31, 2002* (.01) 9.99 (0.10)% 2.44%** (1.86)%** -- 5,150 SECTOR ROTATION FUND H-CLASS SEPTEMBER 30, 2004@ (.39) 10.06 (3.73)% 1.65%** (0.44)%** 169% 62,558 March 31, 2004 2.87 10.45 37.86% 1.66% (0.88)% 253% 86,677 March 31, 2003 (2.41) 7.58 (24.12)% 1.68% (0.08)% 451% 34,845 March 31, 2002* (.01) 9.99 (0.10)% 1.69%** (1.13)%** -- 18,055
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 22, 2002-- SECTOR ROTATION FUND C-CLASS AND H-CLASS; SEPTEMBER 23, 2002-- CORE EQUITY FUND C-CLASS AND H-CLASS; MARCH 31, 2004 -- CORE EQUITY FUND A-CLASS AND SECTOR ROTATION FUND A-CLASS. ** 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. # EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE. @ UNAUDITED See Notes to Financial Statements. 22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Rydex Series Funds (the "Trust") is 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 is authorized to issue an unlimited number of no par value shares. The Trust offers six separate classes of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class Shares, H-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, with the exception of A-Class Shares. C-Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if shares are redeemed within 12 months of purchase. A-Class Shares are sold at net asset value, plus the applicable front-end sales charge. The sales charge varies depending on the amount of your purchase, but will not exceed 4.75%. A-Class Share purchases of $1 million or more have a 1% Contingent Deferred Sales Charge ("CDSC") if Shares are redeemed within 18 months of purchase. The current sales charge rates are as follows: SALES CHARGE SALES CHARGE AS % OF AS % OF NET AMOUNT OF INVESTMENT OFFERING PRICE AMOUNT INVESTED - -------------------------------------------------------------------------------- Less than $100,000 4.75% 4.99% $100,000 but less than $250,000 3.75% 3.90% $250,000 but less than $500,000 2.75% 2.83% $500,000 but less than $1,000,000 1.60% 1.63% Greater than $1,000,000 0.00% 0.00% At September 30, 2004, the Trust consisted of forty-three separate series: twenty-two Benchmark Funds, one Money Market Fund, eighteen Sector Funds, and two Strategic Funds. This report covers the Strategic Funds (the "Funds"), while the Money Market Fund, the Benchmark Funds and the Sector Funds are contained in separate reports. As of September 30, 2004, only A-Class, C-Class and H-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 ("NYSE") or American Stock Exchange) are valued at the last quoted sales price as of close of business on the NYSE, 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, usually as of 4:00 p.m., Eastern Time, 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 A-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 upon the respective aggregate net asset 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 to respond to the dynamically changing economy by moving its investments among different sectors or industries. The Funds may also purchase 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 equity 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; 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 THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 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 Statements 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, discount notes, 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, an affiliated entity, investment advisory fees calculated at an annualized rate of 0.90% of the average daily net assets of the Sector Rotation Fund. Effective July 1, 2003, the Trustees voted to reduce Core Equity's base management fee to 0.70% of the Fund's average daily net assets and implement a performance adjustment, adding or subtracting a performance rate up to 0.20%, allowing the total 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. At September 30, 2004, the effective management fee was 0.90% of the Fund's average daily net assets. Certain officers and trustees of the Trust are also officers of Rydex Global Advisors. Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides transfer agent and administrative 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 of Rydex Fund Services, Inc. The Trust has adopted a Distribution Plan (the "Plan") applicable to its A-Class Shares and 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. 24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 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 Fund's C-Class Shares average daily net assets. The annual 0.25% service fee compensates the shareholder's financial advisor for providing on-going services to the shareholder. The annual 0.75% distribution fee reimburses the Distributor for paying the shareholder's financial advisor an on-going sales commission. The Distributor advances the first year's service and distribution fees to your financial advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record. Certain officers and trustees of the Trust are also officers of Rydex Distributors, Inc. 4. FEDERAL INCOME TAX INFORMATION The Funds intend to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute all net investment income and capital gains to 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 derivatives, 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. 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, 2004, 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 $ 74,978,264 $ 5,705,565 $(1,011,882) $ 4,693,683 Sector Rotation Fund 126,208,093 12,385,260 (2,161,144) 10,224,116 5. REPURCHASE AGREEMENTS The Core Equity Fund transfers uninvested cash balances into a single joint account, along with uninvested cash balances of the Benchmark Funds (the OTC Fund, the Medius Fund, the Mekros Fund, the U.S. Government Bond Fund, the Large-Cap Europe Fund, the Large-Cap Japan Fund, the Small-Cap Value Fund, the Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund, the Large-Cap Growth Fund, the Inverse Small-Cap Fund, the Inverse Mid-Cap Fund, the Nova Master Portfolio, the Ursa Master Portfolio, the Arktos Master Portfolio, and the Juno Master Portfolio; all included in the Trust, but contained in a separate report). The daily aggregate balance of the joint account is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury. The collateral is in the possession of the Trusts' custodian 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, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE - ------------------------------------------------------------------------------------------ Morgan Stanley, Inc. 1.71% due 10/01/04 $345,000,000 $345,000,000 $345,016,388 Smith Barney 1.70% due 10/01/04 345,000,000 345,000,000 345,016,292 Lehman Brothers, Inc. 1.72% due 10/01/04 49,577,413 49,577,413 49,579,781 - ------------------------------------------------------------------------------------------ $739,577,413 $739,612,461 ==========================================================================================
As of September 30, 2004, 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 5.375% - 6.375% $362,355,000 $396,255,836 U. S. Treasury Notes 1.500% - 3.000% 352,195,369 359,654,816 - -------------------------------------------------------------------------------- $755,910,652 ================================================================================ THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- The Sector Rotation Fund transfers uninvested cash balances into a single joint account, along with uninvested cash balances of the Sector Funds (the Banking Fund, the Basic Materials Fund, the Biotechnology Fund, the Consumer Products Fund, the Electronics Fund, the Energy Fund, the Energy Services Fund, the Health Care Fund, the Internet Fund, the Leisure Fund, the Precious Metals Fund, the Real Estate Fund, the Retailing Fund, the Technology Fund, the Telecommunications Fund, the Transportation Fund, and the Utilities Fund; all included in the Trust, but contained in a separate report) and the Dynamic Funds (the Titan Master Portfolio, the Tempest Master Portfolio, the Venture Master Portfolio, the Long Dynamic Dow Master Portfolio, and the Inverse Dynamic Dow Master Portfolio), a separate Trust. The daily aggregate balance is invested in a repurchase agreement collateralized by obligations of the U.S. Treasury. The collateral is in the possession of the Trusts' custodian and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreement at maturity. The repurchase agreement that was executed and outstanding as of September 30, 2004 was as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE - ------------------------------------------------------------------------------------------------- UBS Financial Services, Inc. 1.71% due 10/01/04 $303,702,334 $303,702,334 $303,716,760 - ------------------------------------------------------------------------------------------------- $303,702,334 $303,716,760 - -------------------------------------------------------------------------------------------------
As of September 30, 2004, the collateral for the repurchase agreement was as follows: SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE - -------------------------------------------------------------------------------- U. S. Treasury Bonds 3.875% $ 71,245,050 $ 95,713,941 U. S. Treasury Notes 3.500% - 4.250% 185,004,858 214,072,627 - -------------------------------------------------------------------------------- $309,786,568 ================================================================================ 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, 2004, cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were: CORE SECTOR EQUITY ROTATION FUND FUND - -------------------------------------------------------------------------------- Purchases $74,433,043 $209,206,537 Sales $76,775,021 $229,131,091 26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 7. SHARE TRANSACTIONS The Trust is authorized to distribute an unlimited number of no par value shares.
PURCHASED THROUGH SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED - ------------------------------------------------------------------------------------------------------------------ Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended September 30, March 31, September 30, March 31, September 30, March 31, 2004 2004 2004 2004 2004 2004 - ------------------------------------------------------------------------------------------------------------------ CORE EQUITY FUND A-Class 104,112 69* -- -- (64,400) -- C-Class 729,870 1,529,068 -- 11,280 (425,506) (442,457) H-Class 2,348,669 7,204,234 -- 21,566 (2,113,811) (6,102,086) SECTOR ROTATION FUND A-Class 293,545 463* -- -- (130,201) -- C-Class 1,354,417 4,929,373 -- -- (1,897,572) (1,513,725) H-Class 3,048,319 10,299,134 -- -- (5,121,430) (6,602,667) NET SHARES PURCHASED (REDEEMED) - ----------------------------------------------------- Period Ended Period Ended September 30, March 31, 2004 2004 - ----------------------------------------------------- CORE EQUITY FUND A-Class 39,712 69* C-Class 304,364 1,097,891 H-Class 234,858 1,123,714 SECTOR ROTATION FUND A-Class 163,344 463* C-Class (543,155) 3,415,648 H-Class (2,073,111) 3,696,467
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) - -------------------------------------------------------------------------------- 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, 2004, the pooled cash collateral investments consisted of repurchase agreements (41.98%), commercial paper (27.65%), fixed income notes (24.41%), corporate bonds (5.95%) and mutual funds (0.01%). 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. 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, 2004 the following funds participated in securities lending and received cash collateral: VALUE OF CASH SECURITIES FUND COLLATERAL LOANED - ---- ----------- ----------- Core Equity Fund $ 6,737,564 $ 6,518,971 Sector Rotation Fund 20,910,274 20,334,577 28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT UNAUDITED PROXY VOTING INFORMATION - -------------------------------------------------------------------------------- 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. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29 UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS - -------------------------------------------------------------------------------- Each Trust is served by a separate Board of Trustees composed of six members. The membership of each Board is the same. There is no stated term of service, and Trustees continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling (800) 820-0888. All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850. TRUSTEE AND OFFICER LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - ------------------------- ----------------------------- ------------------ CARL G. VERBONCOEUR* Rydex Series Funds - 2004 100 Trustee, President (1952) Rydex Variable Trust - 2004 Rydex Dynamic Funds - 2004 Rydex ETF Trust - 2004 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and Rydex Distributors, Inc., (1997 to 2000) - -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - --------------------- ------------------------------- ---------------- COREY A. COLEHOUR Rydex Series Funds - 1993 100 Trustee (1945) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield Management Company ---------- J. KENNETH DALTON Rydex Series Funds - 1995 100 Trustee (1941) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and Investor, The Dalton Group ---------- JOHN O. DEMARET Rydex Series Funds - 1997 101 Trustee (1940) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 Rydex Capital Partners Sphinx Fund - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired ---------- PATRICK T. MCCARVILLE Rydex Series Funds - 1997 100 Trustee (1942) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc. ---------- 30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (CONCLUDED) - -------------------------------------------------------------------------------- LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN - ------------------- ------------------------ ----------------- ROGER SOMERS Rydex Series Funds - 1993 100 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine - -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS YEAR OF BIRTH DURING PAST FIVE YEARS --------------------- ---------------------- NICK BONOS* Vice President and Treasurer of Rydex Series Funds, Rydex Variable Vice President and Treasurer (1963) Trust, Rydex Dynamic Funds, Rydex ETF Trust, and Rydex Capital Partners SPhinX Fund, 2003 to present; Senior Vice President of Rydex Fund Services, Inc., 2003 to present; Vice President of Accounting of Rydex Fund Services, Inc., 2000 to 2003; Vice President of Mutual Fund Services, State Street Corp., 1997 to 1999. MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Vice President and Secretary (1970) Dynamic Funds, 2004 to present; Vice President of Rydex Series Funds, 1997 to present; Vice President of Rydex Variable Trust, 1998 to present; Vice President of Rydex Dynamic Funds, 1999 to present; Vice President of Rydex ETF Trust, 2002 to present; President and Trustee of Rydex Capital Partners SPhinX Fund, 2003 to present; President of Rydex Global Advisors, 2004 to present; Chief Operating Officer of Rydex Global Advisors and Rydex Distributors, Inc., 2003 to 2004. JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable Trust, and Chief Compliance Officer and Rydex Dynamic Funds, 2004 to present; Assistant Secretary of Rydex Assistant Secretary (1967) Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds, 2000 to present; Assistant Secretary of Rydex ETF Trust, 2002 to present. Secretary of Rydex Capital Partners SPhinX Fund, 2003 to present.Vice President of Compliance of Rydex Fund Services, Inc., 2000 to present; Vice President Fund Administration, Chase Global Funds Services Co., a division of Chase Manhattan Bank NA, 1994 to 1999.
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST, WITHIN THE MEANING OF SECTION 2(a)(19) OF THE 1940 ACT, INASMUCH AS THIS PERSON IS AFFILIATED WITH THE ADVISOR. THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31 - -------------------------------------------------------------------------------- This page intentionally left blank. - -------------------------------------------------------------------------------- This page intentionally left blank. [RydexInvestments LOGO] Essential for modern markets(TM) 9601 Blackwell Road Suite 500 Rockville,MD 20850 800.820.0888 www.rydexinvestments.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. ITEM 6. SCHEDULE OF INVESTMENTS. Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 10. CONTROLS AND PROCEDURES. (a) Based on their evaluation on November 29, 2004, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex Series Funds (the "Trust") believe that there were no significant deficiencies in the design or operation of the internal controls of the Trust or Rydex Global Advisors ("RGA"), the investment advisor and manager of the Trust, or Rydex Distributors, Inc. ("RD"), which acts as distributor for the Trust, including disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust or RGA on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report, and the President and Treasurer of the Trust have 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 RGA, RD or the Trust who have a significant role in the Trust's internal controls, including disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) that has come to the attention of the advisor or the officers of the Trust, including its President and Treasurer. (b) There were no significant changes in the Trust's and RGA's internal controls, including disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) that apply to the Trust or in other factors with respect to the Trust that could have significantly affected the Trust's or RGA'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 RGA during such period. ITEM 11. EXHIBITS. (a)(2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.: (b) A certification by the registrant's President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached. 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 29, 2004 ---------------------------------------------------------------------------- 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 29, 2004 ---------------------------------------------------------------------------- By (Signature and Title)* /S/ NICK BONOS ---------------------------------------------- Nick Bonos, Vice President & Treasurer Date NOVEMBER 29, 2004 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 ex99cert.txt EX.-11(a)(2)(i) CERTIFICATIONS I, Carl Verboncoeur, certify that: 1. I have reviewed this report on Form N-CSR of Rydex Series Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 29, 2004 /S/ CARL G. VERBONCOEUR Carl G. Verboncoeur, Principal Executive Officer EX.-11(a)(2)(ii) CERTIFICATIONS I, Nick Bonos, certify that: 1. I have reviewed this report on Form N-CSR of Rydex Series Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 29, 2004 /S/ NICK BONOS Nick Bonos, Vice President & Treasurer EX-99.906 3 ex99_906.txt EX. -11(b)(i) CERTIFICATIONS I, Carl G. Verboncoeur, Principal Executive Officer of Rydex Series Funds (the "Trust"), certify that: 1. The Form N-CSR of the Trust (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. A signed original of this written statement required by Section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request. Dated: November 29, 2004 /S/ CARL G. VERBONCOEUR Carl G. Verboncoeur, Principal Executive Officer EX. -11(b)(ii) CERTIFICATIONS I, Nick Bonos, Vice President & Treasurer of Rydex Series Funds (the "Trust"), certify that: 1. The Form N-CSR of the Trust (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. A signed original of this written statement required by Section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request. Dated: November 29, 2004 /S/ NICK BONOS Nick Bonos, Vice President & Treasurer -----END PRIVACY-ENHANCED MESSAGE-----