N-CSRS

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)

Richard M. Goldman, President
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: 301-296-5100

Date of fiscal year end: March 31

Date of reporting period: September 30, 2010

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. § 3507.

Item 1. Reports to Stockholders.

Rydex Series Funds

SEPTEMBER 30, 2010

RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
TARGET BETA FUNDS

NOVA FUND

S&P 500 FUND

INVERSE S&P 500 STRATEGY FUND

NASDAQ-100^® FUND

INVERSE NASDAQ-100^® STRATEGY FUND

MID-CAP 1.5x STRATEGY FUND

INVERSE MID-CAP STRATEGY FUND

RUSSELL 2000^® 1.5x STRATEGY FUND

DOMESTIC EQUITY FUNDS

RUSSELL 2000^® FUND

INVERSE RUSSELL 2000^® STRATEGY FUND

S&P 500 PURE GROWTH FUND

S&P 500 PURE VALUE FUND

S&P MIDCAP 400 PURE GROWTH FUND

S&P MIDCAP 400 PURE VALUE FUND

S&P SMALLCAP 600 PURE GROWTH FUND

S&P SMALLCAP 600 PURE VALUE FUND

INTERNATIONAL EQUITY FUNDS

EUROPE 1.25x STRATEGY FUND

JAPAN 2x STRATEGY FUND

SPECIALTY FUNDS

STRENGTHENING DOLLAR 2x STRATEGY FUND

WEAKENING DOLLAR 2x STRATEGY FUND

REAL ESTATE FUND

FIXED INCOME FUNDS

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

HIGH YIELD STRATEGY FUND

INVERSE HIGH YIELD STRATEGY FUND

MONEY MARKET FUND

U.S. GOVERNMENT MONEY MARKET FUND

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, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS       2

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS       4

ABOUT SHAREHOLDERS’ FUND EXPENSES       5

NOVA FUND     10

S&P 500 FUND     22

INVERSE S&P 500 STRATEGY FUND     33

NASDAQ-100^® FUND     40

INVERSE NASDAQ-100^® STRATEGY FUND     47

MID-CAP 1.5x STRATEGY FUND     54

INVERSE MID-CAP STRATEGY FUND     64

RUSSELL 2000^® 1.5x STRATEGY FUND     70

RUSSELL 2000^® FUND     95

INVERSE RUSSELL 2000^® STRATEGY FUND   121

S&P 500 PURE GROWTH FUND   127

S&P 500 PURE VALUE FUND   134

S&P MIDCAP 400 PURE GROWTH FUND   141

S&P MIDCAP 400 PURE VALUE FUND   148

S&P SMALLCAP 600 PURE GROWTH FUND   155

S&P SMALLCAP 600 PURE VALUE FUND   162

EUROPE 1.25x STRATEGY FUND   169

JAPAN 2x STRATEGY FUND   176

STRENGTHENING DOLLAR 2x STRATEGY FUND   182

WEAKENING DOLLAR 2x STRATEGY FUND   188

REAL ESTATE FUND   194

GOVERNMENT LONG BOND 1.2x STRATEGY FUND   201

INVERSE GOVERNMENT LONG BOND STRATEGY FUND   208

HIGH YIELD STRATEGY FUND   215

INVERSE HIGH YIELD STRATEGY FUND   221

U.S. GOVERNMENT MONEY MARKET FUND   227

NOTES TO FINANCIAL STATEMENTS   235

OTHER INFORMATION   248

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   250

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

Uncertainty over the strength of the U.S. economic recovery and what steps the Federal Reserve might take, if any, to deal with the situation highlighted the six months ending September 30. Stocks bounced back in the July-September period from losses in the second quarter, based partly on relief that the U.S. may be dealing with a prolonged period of slow growth rather than a sharp economic contraction.

The U.S. economy has been out of recession since July 2009, according to a September report from the National Bureau of Economic Research, although employment, income expectations and existing home sales have yet to rebound. Stocks are now roughly where they were six months ago.

U.S. GDP in the second quarter was 1.7%, widely viewed to be insufficient to move the unemployment rate below its current 9.6% before the end of 2010, and significantly lower than the 3.7% GDP in the first quarter. Economists said consumers are not spending at a rate to cause companies to ramp up production, and thus hiring, with confidence. By late September, many investors were widely anticipating that the Federal Reserve, in response to tepid growth, was prepared to start another round of quantitative easing—bond purchases designed to push down long-term interest rates and kick-start private borrowing.

That prospect was welcomed by investors, who sent equities higher in September, the S&P 500^® Index* having its best September performance since 1939. For the third quarter, U.S. equity indices were up between 10-15% compared with drops of from 1-3% for the past six months. The technology sector was the main contributor to quarterly performance in the S&P 500 and the Russell 2000^® Index, as growth style stocks outperformed value in the third quarter by three percentage points. Emerging markets continued to outperform, with investors continuing to pour money into emerging markets equities funds—$50 billion so far in 2010. Emerging markets are being viewed as less risky than in the recent past, particularly since nations in that sector are not confronting the fiscal debt issues facing many countries in the developed world, and are enjoying healthy economic growth.

Corporations continued to borrow aggressively, based on investor demand for bonds and low interest rates, driving hefty investment-grade bond sales as well as sales of high-yield bonds (where issuance through the third quarter has already surpassed the previous annual record). Various bond indices were up both for the third quarter and six months, led by indices for U.S. Government bond prices and corporate high yield bonds. The expectation of quantitative easing also lifted Treasury prices, despite concerns of a building price bubble in bonds. The Bank of America U.S. Government Index was up almost 3% for the third quarter, while the yield on the benchmark 10-year note closed out September at about 2.5%, down from its 2010 peak of just above 4% in April. U.S. debt also benefited as a safe haven from resurgent worries about the economic health of European nations, including more recently Ireland and Portugal.

Investors have also been flocking to gold, driving the price of an ounce of the metal to a non-inflation-adjusted record of around $1,300. Economists said gold’s appeal was both as a hedge against further financial market instability and to assuage investors worried about the inflationary impact of additional Fed easing and massive levels of government debt. Efforts by central banks around the world to boost their economies by keeping their currencies weaker, thus helping exports, may also be contributing to the rise in the price of gold, which is attractive as an alternative store of value. Continuing economic sluggishness in the U.S. caused the dollar to weaken against the euro and yen throughout the summer, as analysts said the economies behind those currencies are in something of a standoff over which has the worst outlook. The third quarter was good for other commodities, in part a response to strong demand in China, crop failures in Russia and the potential for further monetary easing. Grain prices

2    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

LETTER TO OUR SHAREHOLDERS (concluded)

began to fall late in the quarter, as high U.S. yields were expected to offset concerns about shortages in some crops like wheat. High inventory and slack demand combined to keep the price of a barrel of oil stuck in a narrow range, although it traded toward the high end ($82) of the range by September.

In contrast to the second quarter, when worries about European sovereign debt and a possible double-dip recession in the U.S. loomed large, stocks in countries around the world had strong gains in the third quarter. The MSCI EAFE Index* was up 15% for the third quarter and the MSCI EAFE Emerging Markets Index* was up 18%. The latter index was among the best-performing indices for the past six months, up 6%. Markets in Southeast Asia, including Indonesia and Philippines, were at all-time highs, while India and South Korea also flirted with record highs. The domestic stock market of China, which this year is expected to overtake Japan as the world’s second-largest economy, pared its loss for the year, gaining 11% in the third quarter, as investors think the government may be reducing its efforts to rein in the economy. The STOXX 50^®* Index also offset year-to-date losses with a 7% rise in the third quarter, despite a weak outlook issued by the European Central Bank. The Nikkei -225 Stock Average Index*, off 11% for the year, rose 6% in September, helped in part by foreign exchange market intervention designed to hold down the value of the yen.

Rydex|SGI has a full lineup of fundamental alpha, target beta and alternative investment products designed to provide investors with the tools needed to participate in all types of markets and market environments. Contact us if you wish to learn more, and thanks for the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

*Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500) – a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Nikkei-225 Stock Average Index – a price-weighted index of 225 blue-chip companies traded on the Tokyo Stock Exchange.

MSCI EAFE Index (Europe, Australasia, Far East) – a market-capitalization index designed to measure equity market performance in developed markets, excluding the U.S. & Canada. Consists in 2010 of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

MSCI EAFE Emerging Markets – a market-capitalization index designed to measure equity market performance in emerging markets. Consists in 2010 of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The STOXX 50 Index – Europe’s leading Blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The STOXX 50 Index is licensed to financial institutions to serve as underlying for a wide range of investment products such as Exchange Traded Funds (ETF), Futures and Options, and structured products worldwide.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    3

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0%–in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index		Index		Fund				Fund
	Level		Performance		Expectation		Fund NAV		Performance		Assessment
Start		100					$	10.00
Day 1		106		6.0%		9.0%	$	10.90		9.0%	In line
Day 2		99		-6.6%		-9.9%	$	9.82		-9.9%	In line
Cumulative				-1.0%		-1.5%				-1.8%		-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

4    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and 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 investors understand the ongoing costs (in dollars) of investing in a 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, 2010 and ending September 30, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Certain retirement plans such as IRA, SEP, Roth IRA, 403(b), and Rydex|SGI prototype money purchase plan and profit sharing plan accounts are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found 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.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

						Beginning		Ending		Expenses
	Expense		Fund			Account Value		Account Value		Paid During
	Ratio1		Return			March 31, 2010		September 30, 2010		the Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class		1.28%		(3.50%	)	$	1,000.00	$	964.99	$	6.31
Advisor Class		1.78%		(3.74%	)		1,000.00		962.57		8.76
A-Class		1.52%		(3.63%	)		1,000.00		963.69		7.48
C-Class		2.28%		(3.98%	)		1,000.00		960.18		11.20
S&P 500 Fund
A-Class		1.53%		(2.03%	)		1,000.00		979.72		7.59
C-Class		2.28%		(2.44%	)		1,000.00		975.55		11.29
H-Class		1.53%		(2.03%	)		1,000.00		979.72		7.59
Inverse S&P 500 Strategy Fund
Investor Class		1.42%		(1.40%	)		1,000.00		986.04		7.07
Advisor Class		1.92%		(1.65%	)		1,000.00		983.47		9.55
A-Class		1.68%		(1.51%	)		1,000.00		984.89		8.36
C-Class		2.42%		(1.90%	)		1,000.00		981.04		12.02
NASDAQ-100® Fund
Investor Class		1.30%		1.71%			1,000.00		1,017.15		6.57
Advisor Class		1.80%		1.41%			1,000.00		1,014.06		9.09
A-Class		1.55%		1.47%			1,000.00		1,014.67		7.83
C-Class		2.30%		1.20%			1,000.00		1,012.00		11.60
Inverse NASDAQ-100® Strategy Fund
Investor Class		1.47%		(5.44%	)		1,000.00		945.59		7.17
Advisor Class		1.96%		(5.71%	)		1,000.00		942.92		9.55
A-Class		1.71%		(5.55%	)		1,000.00		944.52		8.34
C-Class		2.47%		(5.87%	)		1,000.00		941.26		12.02
Mid-Cap 1.5x Strategy Fund
A-Class		1.68%		1.41%			1,000.00		1,014.13		8.48
C-Class		2.43%		1.04%			1,000.00		1,010.41		12.25
H-Class		1.68%		1.34%			1,000.00		1,013.39		8.48
Inverse Mid-Cap Strategy Fund
A-Class		1.68%		(5.88%	)		1,000.00		941.18		8.18
C-Class		2.42%		(6.22%	)		1,000.00		937.76		11.76
H-Class		1.68%		(5.92%	)		1,000.00		940.77		8.17
Russell 2000® 1.5x Strategy Fund
A-Class		1.70%		(1.98%	)		1,000.00		980.19		8.44
C-Class		2.46%		(2.38%	)		1,000.00		976.17		12.19
H-Class		1.71%		(2.06%	)		1,000.00		979.37		8.49
Russell 2000® Fund
A-Class		1.55%		(0.30%	)		1,000.00		996.95		7.76
C-Class		2.30%		(0.76%	)		1,000.00		992.37		11.49
H-Class		1.56%		(0.26%	)		1,000.00		997.38		7.81
Inverse Russell 2000® Strategy Fund
A-Class		1.71%		(5.63%	)		1,000.00		943.70		8.33
C-Class		2.45%		(5.98%	)		1,000.00		940.20		11.92
H-Class		1.70%		(5.59%	)		1,000.00		944.09		8.29
S&P 500 Pure Growth Fund
A-Class		1.53%		3.09%			1,000.00		1,030.93		7.79
C-Class		2.27%		2.73%			1,000.00		1,027.25		11.54
H-Class		1.52%		3.09%			1,000.00		1,030.94		7.74
S&P 500 Pure Value Fund
A-Class		1.53%		(4.27%	)		1,000.00		957.32		7.51
C-Class		2.28%		(4.64%	)		1,000.00		953.62		11.17
H-Class		1.54%		(4.28%	)		1,000.00		957.20		7.56
S&P MidCap 400 Pure Growth Fund
A-Class		1.53%		4.19%			1,000.00		1,041.91		7.83
C-Class		2.28%		3.84%			1,000.00		1,038.42		11.65
H-Class		1.53%		4.19%			1,000.00		1,041.86		7.83

6    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

						Beginning		Ending		Expenses
	Expense		Fund			Account Value		Account Value		Paid During
	Ratio1		Return			March 31, 2010		September 30, 2010		the Period2
S&P MidCap 400 Pure Value Fund
A-Class		1.52%		(6.44%	)	$	1,000.00	$	935.63	$	7.38
C-Class		2.28%		(6.77%	)		1,000.00		932.32		11.04
H-Class		1.53%		(6.41%	)		1,000.00		935.92		7.43
S&P SmallCap 600 Pure Growth Fund
A-Class		1.52%		1.12%			1,000.00		1,011.23		7.66
C-Class		2.28%		0.84%			1,000.00		1,008.44		11.48
H-Class		1.53%		1.23%			1,000.00		1,012.29		7.72
S&P SmallCap 600 Pure Value Fund
A-Class		1.52%		(13.88%	)		1,000.00		861.22		7.09
C-Class		2.28%		(14.18%	)		1,000.00		858.24		10.62
H-Class		1.54%		(13.90%	)		1,000.00		861.01		7.18
Europe 1.25x Strategy Fund
A-Class		1.68%		(9.80%	)		1,000.00		901.98		8.01
C-Class		2.40%		(10.02%	)		1,000.00		899.77		11.43
H-Class		1.68%		(9.79%	)		1,000.00		902.11		8.01
Japan 2x Strategy Fund
A-Class		1.53%		(12.43%	)		1,000.00		875.68		7.19
C-Class		2.29%		(12.57%	)		1,000.00		874.31		10.76
H-Class		1.53%		(12.20%	)		1,000.00		878.03		7.20
Strengthening Dollar 2x Strategy Fund
A-Class		1.71%		(8.85%	)		1,000.00		911.48		8.19
C-Class		2.46%		(9.28%	)		1,000.00		907.24		11.76
H-Class		1.71%		(8.89%	)		1,000.00		911.10		8.19
Weakening Dollar 2x Strategy Fund
A-Class		1.71%		5.51%			1,000.00		1,055.06		8.81
C-Class		2.46%		5.14%			1,000.00		1,051.40		12.65
H-Class		1.70%		5.51%			1,000.00		1,055.12		8.76
Real Estate Fund
A-Class		1.63%		6.81%			1,000.00		1,068.07		8.45
C-Class		2.38%		6.27%			1,000.00		1,062.74		12.31
H-Class		1.63%		6.77%			1,000.00		1,067.71		8.45
Government Long Bond 1.2x Strategy Fund
Investor Class		0.97%		25.15%			1,000.00		1,251.53		5.47
Advisor Class		1.47%		25.21%			1,000.00		1,252.08		8.30
A-Class		1.22%		25.19%			1,000.00		1,251.86		6.89
C-Class		1.97%		24.68%			1,000.00		1,246.81		11.10
Inverse Government Long Bond Strategy Fund
Investor Class		4.97%		(19.59%	)		1,000.00		804.10		22.48
Advisor Class		5.47%		(19.69%	)		1,000.00		803.10		24.72
A-Class		5.23%		(19.64%	)		1,000.00		803.62		23.65
C-Class		5.98%		(19.91%	)		1,000.00		800.90		27.00
High Yield Strategy Fund
A-Class		1.53%		8.72%			1,000.00		1,087.17		8.01
C-Class		2.27%		8.35%			1,000.00		1,083.54		11.86
H-Class		1.51%		8.78%			1,000.00		1,087.83		7.90
Inverse High Yield Strategy Fund
A-Class		1.52%		(10.59%	)		1,000.00		894.05		7.22
C-Class		2.28%		(10.93%	)		1,000.00		890.65		10.81
H-Class		1.53%		(10.60%	)		1,000.00		894.04		7.26
U.S. Government Money Market Fund
Investor Class		0.25%		0.00%			1,000.00		1,000.00		1.25
Investor2 Class		0.25%		0.00%			1,000.00		1,000.00		1.25
Advisor Class		0.24%		0.00%			1,000.00		1,000.00		1.20
A-Class		0.24%		0.00%			1,000.00		1,000.00		1.20
C-Class		0.25%		0.00%			1,000.00		1,000.00		1.25

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    7

2

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

					Beginning		Ending		Expenses
	Expense		Fund		Account Value		Account Value		Paid During
	Ratio1		Return		March 31, 2010		September 30, 2010		the Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class		1.28%		5.00%	$	1,000.00	$	1,018.65	$	6.48
Advisor Class		1.78%		5.00%		1,000.00		1,016.14		9.00
A-Class		1.52%		5.00%		1,000.00		1,017.45		7.69
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
S&P 500 Fund
A-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
Inverse S&P 500 Strategy Fund
Investor Class		1.42%		5.00%		1,000.00		1,017.95		7.18
Advisor Class		1.92%		5.00%		1,000.00		1,015.44		9.70
A-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
C-Class		2.42%		5.00%		1,000.00		1,012.94		12.21
NASDAQ-100® Fund
Investor Class		1.30%		5.00%		1,000.00		1,018.55		6.58
Advisor Class		1.80%		5.00%		1,000.00		1,016.04		9.10
A-Class		1.55%		5.00%		1,000.00		1,017.30		7.84
C-Class		2.30%		5.00%		1,000.00		1,013.54		11.61
Inverse NASDAQ-100® Strategy Fund
Investor Class		1.47%		5.00%		1,000.00		1,017.70		7.44
Advisor Class		1.96%		5.00%		1,000.00		1,015.24		9.90
A-Class		1.71%		5.00%		1,000.00		1,016.50		8.64
C-Class		2.47%		5.00%		1,000.00		1,012.68		12.46
Mid-Cap 1.5x Strategy Fund
A-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
C-Class		2.43%		5.00%		1,000.00		1,012.89		12.26
H-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
Inverse Mid-Cap Strategy Fund
A-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
C-Class		2.42%		5.00%		1,000.00		1,012.94		12.21
H-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
Russell 2000® 1.5x Strategy Fund
A-Class		1.70%		5.00%		1,000.00		1,016.55		8.59
C-Class		2.46%		5.00%		1,000.00		1,012.73		12.41
H-Class		1.71%		5.00%		1,000.00		1,016.50		8.64
Russell 2000® Fund
A-Class		1.55%		5.00%		1,000.00		1,017.30		7.84
C-Class		2.30%		5.00%		1,000.00		1,013.54		11.61
H-Class		1.56%		5.00%		1,000.00		1,017.25		7.89
Inverse Russell 2000® Strategy Fund
A-Class		1.71%		5.00%		1,000.00		1,016.50		8.64
C-Class		2.45%		5.00%		1,000.00		1,012.78		12.36
H-Class		1.70%		5.00%		1,000.00		1,016.55		8.59
S&P 500 Pure Growth Fund
A-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
C-Class		2.27%		5.00%		1,000.00		1,013.69		11.46
H-Class		1.52%		5.00%		1,000.00		1,017.45		7.69
S&P 500 Pure Value Fund
A-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.54%		5.00%		1,000.00		1,017.35		7.79
S&P MidCap 400 Pure Growth Fund
A-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
S&P MidCap 400 Pure Value Fund
A-Class		1.52%		5.00%		1,000.00		1,017.45		7.69
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.53%		5.00%		1,000.00		1,017.40		7.74

8    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

					Beginning		Ending		Expenses
	Expense		Fund		Account Value		Account Value		Paid During
	Ratio1		Return		March 31, 2010		September 30, 2010		the Period2
S&P SmallCap 600 Pure Growth Fund
A-Class		1.52%		5.00%	$	1,000.00	$	1,017.45	$	7.69
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
S&P SmallCap 600 Pure Value Fund
A-Class		1.52%		5.00%		1,000.00		1,017.45		7.69
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.54%		5.00%		1,000.00		1,017.35		7.79
Europe 1.25x Strategy Fund
A-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
C-Class		2.40%		5.00%		1,000.00		1,013.04		12.11
H-Class		1.68%		5.00%		1,000.00		1,016.65		8.49
Japan 2x Strategy Fund
A-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
C-Class		2.29%		5.00%		1,000.00		1,013.59		11.56
H-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
Strengthening Dollar 2x Strategy Fund
A-Class		1.71%		5.00%		1,000.00		1,016.50		8.64
C-Class		2.46%		5.00%		1,000.00		1,012.73		12.41
H-Class		1.71%		5.00%		1,000.00		1,016.50		8.64
Weakening Dollar 2x Strategy Fund
A-Class		1.71%		5.00%		1,000.00		1,016.50		8.64
C-Class		2.46%		5.00%		1,000.00		1,012.73		12.41
H-Class		1.70%		5.00%		1,000.00		1,016.55		8.59
Real Estate Fund
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
H-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
Government Long Bond 1.2x Strategy Fund
Investor Class		0.97%		5.00%		1,000.00		1,020.21		4.91
Advisor Class		1.47%		5.00%		1,000.00		1,017.70		7.44
A-Class		1.22%		5.00%		1,000.00		1,018.95		6.17
C-Class		1.97%		5.00%		1,000.00		1,015.19		9.95
Inverse Government Long Bond Strategy Fund
Investor Class		4.97%		5.00%		1,000.00		1,000.15		24.92
Advisor Class		5.47%		5.00%		1,000.00		997.64		27.39
A-Class		5.23%		5.00%		1,000.00		998.85		26.21
C-Class		5.98%		5.00%		1,000.00		995.09		29.91
High Yield Strategy Fund
A-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
C-Class		2.27%		5.00%		1,000.00		1,013.69		11.46
H-Class		1.51%		5.00%		1,000.00		1,017.50		7.64
Inverse High Yield Strategy Fund
A-Class		1.52%		5.00%		1,000.00		1,017.45		7.69
C-Class		2.28%		5.00%		1,000.00		1,013.64		11.51
H-Class		1.53%		5.00%		1,000.00		1,017.40		7.74
U.S. Government Money Market Fund
Investor Class		0.25%		5.00%		1,000.00		1,023.82		1.27
Investor2 Class		0.25%		5.00%		1,000.00		1,023.82		1.27
Advisor Class		0.24%		5.00%		1,000.00		1,023.87		1.22
A-Class		0.24%		5.00%		1,000.00		1,023.87		1.22
C-Class		0.25%		5.00%		1,000.00		1,023.82		1.27

1	This ratio represents annualized Total Expenses, which include interest expense from securities sold short. Excluding short interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 3.56%, 3.56%, 3.57%, and 3.57% lower for the Investor Class, Advisor Class, A-Class and C-Class, respectively.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2010 to September 30, 2010.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    9

4

FUND PROFILE (Unaudited)

September 30, 2010

NOVA FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P 500 Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Exxon Mobil Corp.	2.0	%
Apple, Inc.	1.6	%
Microsoft Corp.	1.2	%
General Electric Co.	1.1	%
Johnson & Johnson	1.1	%
Procter & Gamble Co.	1.1	%
International Business
Machines Corp.	1.1	%
AT&T, Inc.	1.1	%
Chevron Corp.	1.0	%
JPMorgan Chase & Co.	1.0	%
Top Ten Total	12.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

10    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  NOVA FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 65.0%
INFORMATION TECHNOLOGY - 12.2%
Apple, Inc.*		3,813	$	1,081,939
Microsoft Corp.		31,769		778,023
International Business Machines Corp.		5,260		705,576
Google, Inc. — Class A*		1,040		546,822
Cisco Systems, Inc.*		23,830		521,877
Intel Corp.		23,235		446,809
Oracle Corp.		16,150		433,628
Hewlett-Packard Co.		9,460		397,982
QUALCOMM, Inc.		6,700		302,304
EMC Corp.*		8,566		173,975
Visa, Inc. — Class A		2,075		154,090
Texas Instruments, Inc.		4,980		135,157
Corning, Inc.		6,510		119,003
eBay, Inc.*		4,808		117,315
Dell, Inc.*		7,060		91,498
Mastercard, Inc. — Class A		396		88,704
Automatic Data Processing, Inc.		2,050		86,162
Motorola, Inc.*		9,744		83,116
Cognizant Technology Solutions Corp. — Class A*		1,264		81,490
NetApp, Inc.*		1,494		74,386
Yahoo!, Inc.*		5,090		72,125
Broadcom Corp. — Class A		1,866		66,038
Juniper Networks, Inc.*		2,170		65,859
Applied Materials, Inc.		5,570		65,058
Xerox Corp.		5,770		59,719
Adobe Systems, Inc.*		2,188		57,216
Salesforce.com, Inc.*		486		54,335
Citrix Systems, Inc.*		783		53,432
Intuit, Inc.*		1,178		51,608
Symantec Corp.*		3,290		49,909
Western Union Co.		2,750		48,593
Agilent Technologies, Inc.*		1,440		48,053
Analog Devices, Inc.		1,240		38,911
Altera Corp.		1,282		38,665
Akamai Technologies, Inc.*		760		38,137
Paychex, Inc.		1,337		36,754
SanDisk Corp.*		972		35,624
Amphenol Corp. — Class A		720		35,266
CA, Inc.		1,610		34,003
Fiserv, Inc.*		620		33,368
Red Hat, Inc.*		790		32,390
Autodesk, Inc.*		950		30,372
BMC Software, Inc.*		750		30,360
McAfee, Inc.*		630		29,774
Fidelity National Information
Services, Inc.		1,095		29,707
Computer Sciences Corp.		640		29,440
Linear Technology Corp.		940		28,886
Xilinx, Inc.		1,080		28,739
NVIDIA Corp.*		2,393		27,950

			MARKET
	SHARES		VALUE
Western Digital Corp.*		955	$	27,112
Teradata Corp.*		700		26,992
Micron Technology, Inc.*		3,575		25,776
KLA-Tencor Corp.		700		24,661
Microchip Technology, Inc.		775		24,374
Harris Corp.		540		23,917
VeriSign, Inc.*		730		23,170
Electronic Arts, Inc.*		1,380		22,673
SAIC, Inc.*		1,220		19,496
Advanced Micro Devices, Inc.*		2,360		16,780
FLIR Systems, Inc.*		650		16,705
Lexmark International, Inc. — Class A*		330		14,725
National Semiconductor Corp.		997		12,732
LSI Corp.*		2,680		12,221
Total System Services, Inc.		780		11,887
Molex, Inc.		566		11,846
Tellabs, Inc.		1,590		11,845
Jabil Circuit, Inc.		805		11,600
JDS Uniphase Corp.*		920		11,399
MEMC Electronic Materials, Inc.*		950		11,324
Novellus Systems, Inc.*		380		10,100
Novell, Inc.*		1,473		8,794
Teradyne, Inc.*		755		8,411
QLogic Corp.*		460		8,114
Compuware Corp.*		930		7,933
Monster Worldwide, Inc.*		540		6,998
Total Information Technology				8,081,732
FINANCIALS - 10.2%
JPMorgan Chase & Co.		16,540		629,678
Berkshire Hathaway, Inc. — Class B*		7,205		595,709
Bank of America Corp.		41,857		548,745
Wells Fargo & Co.		21,833		548,663
Citigroup, Inc.*		99,108		386,521
Goldman Sachs Group, Inc.		2,150		310,847
American Express Co.		4,372		183,755
U.S. Bancorp		8,000		172,960
MetLife, Inc.		3,780		145,341
Morgan Stanley		5,835		144,008
Bank of New York Mellon Corp.		5,064		132,322
PNC Financial Services Group, Inc.		2,190		113,683
Simon Property Group, Inc.		1,219		113,050
Prudential Financial, Inc.		1,950		105,651
Travelers Companies, Inc.		1,960		102,116
Aflac, Inc.		1,965		101,610
ACE Ltd.		1,408		82,016
State Street Corp.		2,090		78,709
Capital One Financial Corp.		1,911		75,580
Chubb Corp.		1,310		74,657
CME Group, Inc. — Class A		280		72,926
Allstate Corp.		2,244		70,798
BB&T Corp.		2,894		69,688

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    11

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  NOVA FUND

			MARKET
	SHARES		VALUE
Franklin Resources, Inc.		610	$	65,209
Progressive Corp.		2,790		58,227
Charles Schwab Corp.		4,127		57,365
Vornado Realty Trust		666		56,963
Equity Residential		1,180		56,133
Public Storage		576		55,895
Marsh & McLennan Companies, Inc.		2,261		54,535
SunTrust Banks, Inc.		2,090		53,985
T. Rowe Price Group, Inc.		1,070		53,570
Loews Corp.		1,330		50,407
Ameriprise Financial, Inc.		1,050		49,696
Northern Trust Corp.		1,009		48,674
Boston Properties, Inc.		580		48,210
HCP, Inc.		1,290		46,414
AON Corp.		1,125		43,999
Hartford Financial Services Group, Inc.		1,850		42,458
Invesco Ltd.		1,950		41,399
Fifth Third Bancorp		3,320		39,940
Host Hotels & Resorts, Inc.		2,753		39,863
Regions Financial Corp.		5,245		38,131
Discover Financial Services		2,270		37,864
AvalonBay Communities, Inc.		350		36,375
Weyerhaeuser Co.		2,234		35,208
Principal Financial Group, Inc.		1,340		34,733
Ventas, Inc.		638		32,902
Intercontinental Exchange, Inc.*		310		32,463
Lincoln National Corp.		1,323		31,646
NYSE Euronext		1,090		31,141
XL Group plc — Class A		1,420		30,757
Unum Group		1,360		30,124
M&T Bank Corp.		364		29,779
KeyCorp		3,669		29,205
Comerica, Inc.		730		27,120
Kimco Realty Corp.		1,690		26,618
Genworth Financial, Inc. — Class A*		2,041		24,941
Plum Creek Timber Company, Inc.		670		23,651
ProLogis		1,990		23,442
SLM Corp.*		2,020		23,331
Health Care REIT, Inc.		470		22,250
American International Group, Inc.*		560		21,896
Moody’s Corp.		854		21,333
Hudson City Bancorp, Inc.		1,719		21,075
People’s United Financial, Inc.		1,550		20,289
Cincinnati Financial Corp.		680		19,618
Legg Mason, Inc.		640		19,398
Torchmark Corp.		340		18,068
Assurant, Inc.		440		17,908
Huntington Bancshares, Inc.		2,989		16,948
CB Richard Ellis Group, Inc. — Class A*		920		16,818
Marshall & Ilsley Corp.		2,200		15,488

			MARKET
	SHARES		VALUE
Zions Bancorporation		720	$	15,379
Leucadia National Corp.		615		14,526
E*Trade Financial Corp.*		820		11,923
NASDAQ OMX Group, Inc.*		600		11,658
First Horizon National Corp.*		974		11,112
Apartment Investment & Management Co. — Class A		490		10,476
Federated Investors, Inc. — Class B		380		8,649
Janus Capital Group, Inc.		770		8,432
Total Financials				6,724,650
HEALTH CARE - 7.6%
Johnson & Johnson		11,487		711,735
Pfizer, Inc.		33,530		575,710
Merck & Company, Inc.		12,840		472,640
Abbott Laboratories		6,440		336,426
Amgen, Inc.*		4,000		220,440
Bristol-Myers Squibb Co.		7,150		193,837
UnitedHealth Group, Inc.		4,690		164,666
Eli Lilly & Co.		4,235		154,705
Medtronic, Inc.		4,510		151,446
Gilead Sciences, Inc.*		3,500		124,635
Baxter International, Inc.		2,440		116,412
Celgene Corp.*		1,920		110,611
Express Scripts, Inc. — Class A*		2,260		110,062
WellPoint, Inc.*		1,670		94,589
Medco Health Solutions, Inc.*		1,800		93,708
Allergan, Inc.		1,280		85,158
Thermo Fisher Scientific, Inc.*		1,690		80,917
Genzyme Corp.*		1,060		75,037
Becton Dickinson and Co.		970		71,877
McKesson Corp.		1,090		67,340
Stryker Corp.		1,260		63,063
Biogen Idec, Inc.*		1,000		56,120
Aetna, Inc.		1,740		55,001
St. Jude Medical, Inc.*		1,368		53,817
Cardinal Health, Inc.		1,460		48,238
Intuitive Surgical, Inc.*		160		45,398
Zimmer Holdings, Inc.*		840		43,957
CIGNA Corp.		1,140		40,789
Hospira, Inc.*		700		39,907
Boston Scientific Corp.*		6,320		38,742
Forest Laboratories, Inc.*		1,190		36,807
Life Technologies Corp.*		765		35,718
AmerisourceBergen Corp. — Class A		1,160		35,566
Humana, Inc.*		700		35,168
Laboratory Corporation of America Holdings*		430		33,725
CR Bard, Inc.		390		31,758
Varian Medical Systems, Inc.*		510		30,855
Quest Diagnostics, Inc.		610		30,787
DaVita, Inc.*		430		29,683
Waters Corp.*		380		26,896

12    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  NOVA FUND

			MARKET
	SHARES		VALUE
Mylan, Inc.*		1,290	$	24,265
Cerner Corp.*		286		24,021
CareFusion Corp.*		930		23,101
Cephalon, Inc.*		310		19,356
DENTSPLY International, Inc.		600		19,182
Watson Pharmaceuticals, Inc.*		450		19,040
Coventry Health Care, Inc.*		615		13,241
Patterson Companies, Inc.		400		11,460
PerkinElmer, Inc.		490		11,339
King Pharmaceuticals, Inc.*		1,038		10,338
Tenet Healthcare Corp.*		2,019		9,530
Total Health Care				5,008,819
CONSUMER STAPLES - 7.3%
Procter & Gamble Co.		11,840		710,045
Coca-Cola Co.		9,635		563,840
Wal-Mart Stores, Inc.		8,340		446,357
PepsiCo, Inc.		6,640		441,162
Philip Morris International, Inc.		7,650		428,553
Kraft Foods, Inc. — Class A		7,279		224,630
Altria Group, Inc.		8,691		208,758
CVS Caremark Corp.		5,670		178,435
Colgate-Palmolive Co.		2,030		156,026
Walgreen Co.		4,060		136,010
Costco Wholesale Corp.		1,827		117,823
Kimberly-Clark Corp.		1,710		111,235
General Mills, Inc.		2,680		97,927
Archer-Daniels-Midland Co.		2,670		85,226
Sysco Corp.		2,450		69,874
HJ Heinz Co.		1,325		62,765
Kroger Co.		2,680		58,049
Avon Products, Inc.		1,788		57,413
Kellogg Co.		1,085		54,803
Lorillard, Inc.		630		50,595
Mead Johnson Nutrition Co. — Class A		850		48,373
Coca-Cola Enterprises, Inc.		1,380		42,780
Reynolds American, Inc.		710		42,167
ConAgra Foods, Inc.		1,830		40,150
Clorox Co.		580		38,721
Sara Lee Corp.		2,760		37,067
Dr Pepper Snapple Group, Inc.		990		35,165
Safeway, Inc.		1,590		33,644
Molson Coors Brewing Co. — Class B		650		30,693
Hershey Co.		640		30,458
Estee Lauder Companies, Inc. — Class A		480		30,350
JM Smucker Co.		500		30,265
Campbell Soup Co.		800		28,600
Brown-Forman Corp. — Class B		430		26,505
McCormick & Company, Inc.		546		22,954
Whole Foods Market, Inc.*		612		22,711
Tyson Foods, Inc. — Class A		1,240		19,865
Constellation Brands, Inc. — Class A*		800		14,152

			MARKET
	SHARES		VALUE
Hormel Foods Corp.		290	$	12,934
SUPERVALU, Inc.		888		10,239
Dean Foods Co.*		760		7,760
Total Consumer Staples				4,865,079
ENERGY - 7.1%
Exxon Mobil Corp.		21,240		1,312,420
Chevron Corp.		8,394		680,334
ConocoPhillips		6,190		355,492
Schlumberger Ltd.		5,700		351,177
Occidental Petroleum Corp.		3,394		265,750
Apache Corp.		1,515		148,106
Halliburton Co.		3,800		125,666
Anadarko Petroleum Corp.		2,059		117,466
Devon Energy Corp.		1,810		117,179
EOG Resources, Inc.		1,062		98,734
Marathon Oil Corp.		2,960		97,976
National Oilwell Varco, Inc.		1,749		77,778
Baker Hughes, Inc.		1,804		76,850
Hess Corp.		1,218		72,008
Chesapeake Energy Corp.		2,735		61,948
Spectra Energy Corp.		2,700		60,885
Peabody Energy Corp.		1,120		54,891
Noble Energy, Inc.		730		54,816
Murphy Oil Corp.		800		49,536
Southwestern Energy Co.*		1,442		48,221
Williams Companies, Inc.		2,437		46,571
Cameron International Corp.*		1,010		43,390
Valero Energy Corp.		2,358		41,289
El Paso Corp.		2,935		36,335
Consol Energy, Inc.		940		34,742
FMC Technologies, Inc.*		500		34,145
Pioneer Natural Resources Co.		480		31,215
Denbury Resources, Inc.*		1,657		26,330
Range Resources Corp.		670		25,547
EQT Corp.		620		22,357
QEP Resources, Inc.		730		22,002
Nabors Industries Ltd.*		1,190		21,491
Diamond Offshore Drilling, Inc.		290		19,653
Sunoco, Inc.		496		18,104
Helmerich & Payne, Inc.		440		17,802
Rowan Companies, Inc.*		480		14,573
Massey Energy Co.		430		13,339
Cabot Oil & Gas Corp.		430		12,947
Tesoro Corp.		580		7,749
Total Energy				4,716,814
INDUSTRIALS - 7.0%
General Electric Co.		44,599		724,734
United Technologies Corp.		3,880		276,372
United Parcel Service, Inc. — Class B		4,130		275,430
3M Co.		2,980		258,396
Caterpillar, Inc.		2,633		207,164
Boeing Co.		3,050		202,947

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    13

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  NOVA FUND

			MARKET
	SHARES		VALUE
Union Pacific Corp.		2,080	$	170,144
Emerson Electric Co.		3,140		165,352
Honeywell International, Inc.		3,222		141,575
Deere & Co.		1,770		123,511
FedEx Corp.		1,310		112,005
General Dynamics Corp.		1,590		99,868
Norfolk Southern Corp.		1,540		91,645
Danaher Corp.		2,226		90,398
Illinois Tool Works, Inc.		1,916		90,090
Lockheed Martin Corp.		1,240		88,387
CSX Corp.		1,580		87,406
Tyco International Ltd.		2,080		76,398
Precision Castparts Corp.		590		75,136
Northrop Grumman Corp.		1,230		74,575
Cummins, Inc.		820		74,276
PACCAR, Inc.		1,520		73,188
Raytheon Co.		1,560		71,308
Waste Management, Inc.		1,990		71,123
Eaton Corp.		696		57,413
CH Robinson Worldwide, Inc.		690		48,245
Parker Hannifin Corp.		670		46,940
Expeditors International of Washington, Inc.		890		41,145
Dover Corp.		780		40,724
Southwest Airlines Co.		3,110		40,648
Republic Services, Inc. — Class A		1,280		39,027
Rockwell Collins, Inc.		660		38,445
Goodrich Corp.		518		38,192
Fluor Corp.		750		37,147
Rockwell Automation, Inc.		590		36,421
ITT Corp.		770		36,059
L-3 Communications Holdings, Inc.		480		34,690
First Solar, Inc.*		215		31,680
WW Grainger, Inc.		250		29,777
Fastenal Co.		487		25,904
Roper Industries, Inc.		390		25,420
Flowserve Corp.		230		25,167
Stericycle, Inc.*		350		24,318
Textron, Inc.		1,140		23,438
Jacobs Engineering Group, Inc.*		520		20,124
Pall Corp.		480		19,987
Pitney Bowes, Inc.		860		18,387
Avery Dennison Corp.		460		17,075
Quanta Services, Inc.*		876		16,714
Masco Corp.		1,490		16,405
Equifax, Inc.		520		16,224
Robert Half International, Inc.		620		16,120
Cintas Corp.		550		15,152
Dun & Bradstreet Corp.		200		14,828
RR Donnelley & Sons Co.		860		14,586
Iron Mountain, Inc.		616		13,761
Snap-On, Inc.		238		11,069
Ryder System, Inc.		210		8,982
Total Industrials				4,661,642

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY - 6.8%
McDonald’s Corp.		4,440	$	330,824
Walt Disney Co.		7,980		264,218
Amazon.com, Inc.*		1,480		232,449
Home Depot, Inc.		6,950		220,176
Comcast Corp. — Class A		11,710		211,717
Ford Motor Co.*		14,354		175,693
Target Corp.		3,010		160,854
DIRECTV — Class A*		3,617		150,576
Time Warner, Inc.		4,690		143,749
Lowe’s Companies, Inc.		5,850		130,397
NIKE, Inc. — Class B		1,610		129,025
News Corp. — Class A*		9,510		124,201
Viacom, Inc. — Class B		2,540		91,923
Yum! Brands, Inc.		1,950		89,817
Johnson Controls, Inc.		2,806		85,583
Time Warner Cable, Inc. — Class A		1,479		79,851
Starbucks Corp.		3,080		78,786
TJX Companies, Inc.		1,670		74,532
Carnival Corp.		1,810		69,160
Priceline.com, Inc.*		195		67,926
Kohl’s Corp.*		1,283		67,588
Staples, Inc.		3,049		63,785
Best Buy Company, Inc.		1,435		58,591
Coach, Inc.		1,240		53,270
Discovery Communications, Inc. — Class A*		1,190		51,824
Omnicom Group, Inc.		1,260		49,745
Bed Bath & Beyond, Inc.*		1,090		47,317
CBS Corp. — Class B		2,841		45,058
McGraw-Hill Companies, Inc.		1,290		42,647
Stanley Black & Decker, Inc.		689		42,222
Starwood Hotels & Resorts Worldwide, Inc.		790		41,515
Macy’s, Inc.		1,759		40,615
Marriott International, Inc. — Class A		988		35,400
Mattel, Inc.		1,500		35,190
The Gap, Inc.		1,830		34,111
Fortune Brands, Inc.		636		31,310
O’Reilly Automotive, Inc.*		569		30,271
Limited Brands, Inc.		1,100		29,458
Genuine Parts Co.		659		29,385
VF Corp.		360		29,167
Harley-Davidson, Inc.		980		27,871
AutoZone, Inc.*		120		27,469
Wynn Resorts Ltd.		314		27,246
Apollo Group, Inc. — Class A*		525		26,959
Ross Stores, Inc.		490		26,764
JC Penney Company, Inc.		978		26,582
Nordstrom, Inc.		699		26,003
CarMax, Inc.*		929		25,882
Whirlpool Corp.		310		25,098
Tiffany & Co.		530		24,905

14    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  NOVA FUND

			MARKET
	SHARES		VALUE
Darden Restaurants, Inc.		580	$	24,812
Expedia, Inc.		869		24,514
Family Dollar Stores, Inc.		550		24,288
Polo Ralph Lauren Corp. — Class A		270		24,262
Newell Rubbermaid, Inc.		1,160		20,660
Wyndham Worldwide Corp.		750		20,602
Interpublic Group of Companies, Inc.*		2,045		20,511
Hasbro, Inc.		459		20,430
International Game Technology		1,240		17,918
Scripps Networks Interactive, Inc. — Class A		370		17,605
Urban Outfitters, Inc.*		540		16,978
H&R Block, Inc.		1,290		16,706
Abercrombie & Fitch Co. — Class A		375		14,745
Leggett & Platt, Inc.		610		13,884
DR Horton, Inc.		1,170		13,010
Sears Holdings Corp.*		180		12,985
DeVry, Inc.		260		12,795
GameStop Corp. — Class A*		630		12,417
Pulte Group, Inc.*		1,398		12,246
Gannett Company, Inc.		1,000		12,230
RadioShack Corp.		518		11,049
Goodyear Tire & Rubber Co.*		1,008		10,836
Big Lots, Inc.*		320		10,640
Lennar Corp. — Class A		660		10,151
Harman International Industries, Inc.*		280		9,355
Washington Post Co. — Class B		20		7,988
AutoNation, Inc.*		260		6,045
Office Depot, Inc.*		1,146		5,272
Meredith Corp.		150		4,997
Eastman Kodak Co.*		1,120		4,704
New York Times Co. — Class A*		489		3,785
Total Consumer Discretionary				4,473,125
UTILITIES - 2.4% Southern Co.		3,470		129,223
Exelon Corp.		2,763		117,649
Dominion Resources, Inc.		2,460		107,404
Duke Energy Corp.		5,504		97,476
NextEra Energy, Inc.		1,730		94,095
American Electric Power Company, Inc.		1,999		72,424
Public Service Enterprise Group, Inc.		2,106		69,666
PG&E Corp.		1,480		67,222
Entergy Corp.		780		59,693
Consolidated Edison, Inc.		1,180		56,900
Sempra Energy		1,026		55,199
PPL Corp.		2,010		54,732
Progress Energy, Inc.		1,223		54,326
FirstEnergy Corp.		1,270		48,946
Edison International		1,360		46,770

			MARKET
	SHARES		VALUE
Xcel Energy, Inc.		1,920	$	44,102
DTE Energy Co.		700		32,151
AES Corp.*		2,780		31,553
Wisconsin Energy Corp.		490		28,322
Ameren Corp.		989		28,088
CenterPoint Energy, Inc.		1,760		27,667
Constellation Energy Group, Inc.		844		27,211
NRG Energy, Inc.*		1,050		21,861
Northeast Utilities		727		21,497
NiSource, Inc.		1,163		20,236
Oneok, Inc.		440		19,818
SCANA Corp.		470		18,950
Pinnacle West Capital Corp.		450		18,571
Allegheny Energy, Inc.		710		17,409
CMS Energy Corp.		960		17,299
Pepco Holdings, Inc.		929		17,279
Integrys Energy Group, Inc.		324		16,867
TECO Energy, Inc.		900		15,588
Nicor, Inc.		190		8,706
Total Utilities				1,564,900
MATERIALS - 2.3%
E. I. du Pont de Nemours & Co.		3,779		168,619
Freeport-McMoRan Copper & Gold, Inc. — Class B		1,956		167,023
Dow Chemical Co.		4,844		133,016
Newmont Mining Co.		2,047		128,572
Praxair, Inc.		1,279		115,442
Monsanto Co.		2,250		107,842
Air Products & Chemicals, Inc.		880		72,882
Alcoa, Inc.		4,264		51,637
Nucor Corp.		1,320		50,424
PPG Industries, Inc.		690		50,232
Ecolab, Inc.		970		49,218
International Paper Co.		1,820		39,585
Cliffs Natural Resources, Inc.		570		36,434
Sigma-Aldrich Corp.		510		30,794
Sherwin-Williams Co.		370		27,802
CF Industries Holdings, Inc.		290		27,695
United States Steel Co.		599		26,260
Ball Corp.		380		22,363
Eastman Chemical Co.		300		22,200
Airgas, Inc.		310		21,064
FMC Corp.		300		20,523
Vulcan Materials Co.		530		19,568
Owens-Illinois, Inc.*		680		19,081
Allegheny Technologies, Inc.		410		19,044
Pactiv Corp.*		560		18,469
MeadWestvaco Corp.		710		17,310
International Flavors & Fragrances, Inc.		330		16,012
Sealed Air Corp.		660		14,837
Bemis Company, Inc.		460		14,605
Titanium Metals Corp.*		366		7,305
AK Steel Holding Corp.		460		6,353
Total Materials				1,522,211

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    15

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  NOVA FUND

			MARKET
	SHARES		VALUE
TELECOMMUNICATION SERVICES - 2.1%
AT&T, Inc.		24,646	$	704,876
Verizon Communications, Inc.		11,790		384,236
American Tower Corp. — Class A*		1,670		85,604
Sprint Nextel Corp.*		12,450		57,643
CenturyLink, Inc.		1,250		49,325
Qwest Communications International, Inc.		7,251		45,464
Frontier Communications Corp.		4,141		33,832
Windstream Corp.		2,010		24,703
MetroPCS Communications, Inc.*		1,093		11,433
Total Telecommunication Services				1,397,116
Total Common Stocks (Cost $29,843,596)				43,016,088
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 29.4%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	5,551,683		5,551,683
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		5,545,503		5,545,503
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		5,482,693		5,482,693
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		2,291,530		2,291,530
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		572,882		572,882
Total Repurchase Agreements (Cost $19,444,291)				19,444,291
Total Investments – 94.4% (Cost $49,287,887)			$	62,460,379
Cash & Other Assets, Less Liabilities – 5.6%				3,717,465
Total Net Assets – 100.0%			$	66,177,844

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED†
December 2010 S&P 500 Index
Mini Futures Contracts (Aggregate Market Value of Contracts $10,735,200)		189	$	67,888
		UNITS
EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2010 S&P 500 Index Swap, Terminating 10/27/103 (Notional Market Value $7,729,662)		6,773	$	(4,339	)
Morgan Stanley Capital Services, Inc.
October 2010 S&P 500 Index Swap, Terminating 10/26/103 (Notional Market Value $11,745,911)		10,293		(6,627	)
Credit Suisse Capital, LLC October 2010 S&P 500 Index Swap, Terminating 10/29/103 (Notional Market Value $26,359,985)		23,098		(81,362	)
(Total Notional Market Value $45,835,558)			$	(92,328	)

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

16    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  NOVA FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	43,016,088
Repurchase agreement, at value		19,444,291
Total investments		62,460,379
Segregated cash with broker		2,094,974
Cash		126
Receivables:
Fund shares sold		2,083,411
Dividends		51,334
Interest		104
Total assets		66,690,328
Liabilities:
Unrealized depreciation on swap agreements		92,328
Payable for:
Variation margin		35,544
Fund shares redeemed		288,810
Management fees		34,001
Custodian fees		1,520
Transfer agent/maintenance fees		11,334
Distribution and service fees		10,103
Portfolio accounting fees		4,533
Other		34,311
Total liabilities		512,484
Net assets	$	66,177,844
Net assets consist of:
Paid in capital		176,887,954
Undistributed net investment income		94,203
Accumulated net realized loss on
sale of investments		(123,952,365	)
Net unrealized appreciation in
value of investments		13,148,052
Net assets		66,177,844
Investor Class:
Net assets	$	46,697,606
Capital shares outstanding		2,386,686
Net asset value per share		$19.57
Advisor Class:
Net assets	$	6,886,198
Capital shares outstanding		377,132
Net asset value per share		$18.26
A-Class:
Net assets	$	4,572,863
Capital shares outstanding		246,077
Net asset value per share		$18.58
Maximum offering price per share*		$19.51
C-Class:
Net assets	$	8,021,177
Capital shares outstanding		455,680
Net asset value per share		$17.60
Investments, at cost	$	29,843,596
Repurchase agreement, at cost		19,444,291
Total cost	$	49,287,887

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	480,456
Interest		13,290
Total investment income		493,746
Expenses:
Management fees		242,096
Transfer agent and administrative fees		80,698
Distribution and Service Fees:
Advisor Class		17,878
A-Class		3,784
C-Class		43,743
Portfolio accounting fees		32,279
Trustees’ fees**		2,986
Miscellaneous		54,811
Total expenses		478,275
Net investment income		15,471
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		2,730,781
Equity index swaps		(1,657,535	)
Futures contracts		(772,170	)
Net realized gain		301,076
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		(5,474,053	)
Equity index swaps		(1,219,266	)
Futures contracts		(11,577	)
Net unrealized depreciation		(6,704,896	)
Net loss		(6,403,820	)
Net decrease in net assets resulting
from operations	$	(6,388,349	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    17

  NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	15,471		$	78,731
Net realized gain during the period on investments		301,076			14,811,881
Net unrealized appreciation (depreciation) during the period on investments		(6,704,896	)		22,856,692
Net increase (decrease) in net assets resulting from operations		(6,388,349	)		37,747,304
Distributions to shareholders from:
Net investment income
Investor Class		—			(400,020	)
Advisor Class		—			(66,025	)
A-Class		—			(25,816	)
C-Class		—			(115,450	)
Total distributions to shareholders		—			(607,311	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		144,457,505			263,372,039
Advisor Class		11,976,754			37,475,685
A-Class		7,206,663			11,892,536
C-Class		3,572,843			7,293,115
Distributions reinvested
Investor Class		—			389,078
Advisor Class		—			62,038
A-Class		—			23,887
C-Class		—			109,992
Cost of shares redeemed
Investor Class		(169,972,257	)		(241,354,104	)
Advisor Class		(16,250,314	)		(42,157,841	)
A-Class		(4,214,705	)		(16,805,121	)
C-Class		(5,760,933	)		12,273,520
Net increase (decrease) from capital share transactions		(28,984,444	)		8,027,784
Net increase (decrease) in net assets		(35,372,793	)		45,167,777
Net assets:
Beginning of period		101,550,637			56,382,860
End of period	$	66,177,844		$	101,550,637
Undistributed net investment income at end of period	$	94,203		$	78,732
Capital share activity:
Shares sold
Investor Class		7,609,469			15,696,593
Advisor Class		686,478			2,371,621
A-Class		402,444			797,509
C-Class		211,772			489,614
Shares reinvested
Investor Class		—			20,846
Advisor Class		—			3,549
A-Class		—			1,345
C-Class		—			6,500
Shares redeemed
Investor Class		(9,033,387	)		(14,766,800	)
Advisor Class		(928,516	)		(2,767,595	)
A-Class		(253,640	)		(1,033,705	)
C-Class		(337,597	)		(808,245	)
Total capital share activity		(1,642,977	)		11,232

18    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  NOVA FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$20.28			$11.40			$26.13			$30.92			$28.89			$25.96
Income (loss) from investment operations:
Net investment income (loss)b		.02			.06			.19			.40			(.15	)		(.12	)
Net gain (loss) on securities
(realized and unrealized)		(.73	)		8.97			(14.83	)		(4.51	)		4.19			3.90
Total from investment operations		(.71	)		9.03			(14.64	)		(4.11	)		4.04			3.78
Less distributions:
Distributions from net investment income		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Total distributions		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Net asset value, end of period		$19.57			$20.28			$11.40			$26.13			$30.92			$28.89
Total Returnc		(3.50%	)		79.36%			(56.06%	)		(13.71%	)		13.99%			14.68%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$46,698			$77,268			$32,603			$74,674			$113,195			$139,786
Ratios to average net assets:
Net investment income (loss)		0.24%			0.33%			0.93%			1.26%			1.23%			(0.45%	)
Combined net investment incomee		—			—			—			—			—			0.95%
Total expensesf		1.28%			1.28%			1.29%			1.27%			1.25%			1.35%
Net expensesf		1.28%			1.28%			1.29%			1.27%			1.25%			1.23%
Portfolio turnover rate		38%			68%			143%			115%			144%			192%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$18.97			$10.73			$24.72			$29.44			$27.73			$25.08
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.01	)		.08			.23			(.28	)		(.25	)
Net gain (loss) on securities
(realized and unrealized)		(.69	)		8.40			(13.98	)		(4.27	)		4.00			3.75
Total from investment operations		(.71	)		8.39			(13.90	)		(4.04	)		3.72			3.50
Less distributions:
Distributions from net investment income		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Total distributions		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Net asset value, end of period		$18.26			$18.97			$10.73			$24.72			$29.44			$27.73
Total Returnc		(3.74%	)		78.35%			(56.26%	)		(14.16%	)		13.41%			14.07%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,886			$11,746			$10,853			$19,218			$36,441			$41,002
Ratios to average net assets:
Net investment income (loss)		(0.26%	)		(0.03%	)		0.45%			0.78%			0.73%			(0.96%	)
Combined net investment incomee		—			—			—			—			—			0.44%
Total expensesf		1.78%			1.78%			1.79%			1.77%			1.75%			1.85%
Net expensesf		1.78%			1.78%			1.79%			1.77%			1.75%			1.74%
Portfolio turnover rate		38%			68%			143%			115%			144%			192%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    19

  NOVA FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$19.28			$10.88			$24.99			$29.67			$27.87			$25.15
Income (loss) from investment operations:
Net investment income (loss)b		—	d		.03			.13			.29			(.21	)		(.19	)
Net gain (loss) on securities
(realized and unrealized)		(.70	)		8.52			(14.15	)		(4.29	)		4.02			3.76
Total from investment operations		(.70	)		8.55			(14.02	)		(4.00	)		3.81			3.57
Less distributions:
Distributions from net investment income		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Total distributions		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Net asset value, end of period		$18.58			$19.28			$10.88			$24.99			$29.67			$27.87
Total Returnc		(3.63%	)		78.74%			(56.13%	)		(13.92%	)		13.67%			14.32%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,573			$1,876			$3,612			$11,791			$15,586			$29,315
Ratios to average net assets:
Net investment income (loss)		0.03%			0.18%			0.70%			0.97%			0.98%			(0.71%	)
Combined net investment incomee		—			—			—			—			—			0.69%
Total expensesf		1.52%			1.54%			1.54%			1.52%			1.50%			1.60%
Net expensesf		1.52%			1.54%			1.54%			1.52%			1.50%			1.49%
Portfolio turnover rate		38%			68%			143%			115%			144%			192%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$18.33			$10.42			$24.14			$28.91			$27.39			$24.89
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.09	)		(.01	)		.07			(.42	)		(.38	)
Net gain (loss) on securities
(realized and unrealized)		(.67	)		8.15			(13.62	)		(4.16	)		3.95			3.73
Total from investment operations		(.73	)		8.06			(13.63	)		(4.09	)		3.53			3.35
Less distributions:
Distributions from net investment income		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Total distributions		—			(.15	)		(.09	)		(.68	)		(2.01	)		(.85	)
Net asset value, end of period		$17.60			$18.33			$10.42			$24.14			$28.91			$27.39
Total Returnc		(3.98%	)		77.51%			(56.49%	)		(14.60%	)		12.88%			13.58%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,021			$10,661			$9,314			$29,715			$42,925			$50,131
Ratios to average net assets:
Net investment income (loss)		(0.72%	)		(0.61%	)		(0.05%	)		0.24%			0.23%			(1.46%	)
Combined net investment losse		—			—			—			—			—			(0.06%	)
Total expensesf		2.28%			2.28%			2.29%			2.27%			2.25%			2.35%
Net expensesf		2.28%			2.28%			2.29%			2.27%			2.25%			2.24%
Portfolio turnover rate		38%			68%			143%			115%			144%			192%

20    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Less than $0.01 per share.

Prior to April 1, 2007, the Nova Fund operated under a Master-Feeder Structure.

e	Ratios represent combined net investment income of the former Master Portfolio and the Fund. Ratios shown under the caption “Combined Net Investment Income (Loss)” for the year ended March 31, 2006 and preceding periods did not reflect the net investment income of the former Master Portfolio.
f	Expense ratios to average net assets include expenses of the corresponding former Master Portfolio for the year ended March 31, 2007 and preceding periods.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    21

FUND PROFILE (Unaudited)

September 30, 2010

S&P 500 FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the S&P 500 Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	2.1	%
Apple, Inc.	1.7	%
Microsoft Corp.	1.2	%
General Electric Co.	1.2	%
Johnson & Johnson	1.1	%
Procter & Gamble Co.	1.1	%
International Business
Machines Corp.	1.1	%
AT&T, Inc.	1.1	%
Chevron Corp.	1.1	%
JPMorgan Chase & Co.	1.0	%
Top Ten Total	12.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

22    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  S&P 500 FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 68.4%
INFORMATION TECHNOLOGY - 12.8%
Apple, Inc.*		5,247	$	1,488,836
Microsoft Corp.		43,760		1,071,682
International Business Machines Corp.		7,250		972,515
Google, Inc. — Class A*		1,428		750,828
Cisco Systems, Inc.*		32,823		718,824
Intel Corp.		31,999		615,341
Oracle Corp.		22,240		597,144
Hewlett-Packard Co.		13,030		548,172
QUALCOMM, Inc.		9,220		416,006
EMC Corp.*		11,800		239,658
Visa, Inc. — Class A		2,858		212,235
Texas Instruments, Inc.		6,870		186,452
Corning, Inc.		8,972		164,008
eBay, Inc.*		6,645		162,138
Dell, Inc.*		9,720		125,971
Mastercard, Inc. — Class A		559		125,216
Automatic Data Processing, Inc.		2,830		118,945
Motorola, Inc.*		13,406		114,353
Cognizant Technology Solutions Corp. — Class A*		1,726		111,275
Yahoo!, Inc.*		7,747		109,775
NetApp, Inc.*		2,056		102,368
Broadcom Corp. — Class A		2,576		91,165
Juniper Networks, Inc.*		2,990		90,747
Applied Materials, Inc.		7,680		89,702
Intuit, Inc.*		1,891		82,845
Xerox Corp.		7,946		82,241
Adobe Systems, Inc.*		3,020		78,973
Salesforce.com, Inc.*		670		74,906
Citrix Systems, Inc.*		1,073		73,222
Symantec Corp.*		4,540		68,872
Western Union Co.		3,790		66,969
Agilent Technologies, Inc.*		2,000		66,740
Analog Devices, Inc.		1,720		53,974
Altera Corp.		1,768		53,323
Akamai Technologies, Inc.*		1,040		52,187
Paychex, Inc.		1,857		51,049
SanDisk Corp.*		1,336		48,964
Amphenol Corp. — Class A		997		48,833
CA, Inc.		2,230		47,098
Fiserv, Inc.*		860		46,285
Red Hat, Inc.*		1,090		44,690
McAfee, Inc.*		890		42,062
Autodesk, Inc.*		1,310		41,881
BMC Software, Inc.*		1,030		41,695
Fidelity National Information Services, Inc.		1,517		41,156
Computer Sciences Corp.		888		40,848
Linear Technology Corp.		1,293		39,734
Xilinx, Inc.		1,490		39,649
NVIDIA Corp.*		3,303		38,579

			MARKET
	SHARES		VALUE
Western Digital Corp.*		1,317	$	37,390
Teradata Corp.*		960		37,018
Micron Technology, Inc.*		4,909		35,394
KLA-Tencor Corp.		970		34,173
Microchip Technology, Inc.		1,071		33,683
Harris Corp.		740		32,775
VeriSign, Inc.*		1,000		31,740
Electronic Arts, Inc.*		1,902		31,250
SAIC, Inc.*		1,686		26,942
Total System Services, Inc.		1,596		24,323
FLIR Systems, Inc.*		910		23,387
Advanced Micro Devices, Inc.*		3,257		23,157
Lexmark International, Inc. — Class A*		452		20,168
National Semiconductor Corp.		1,378		17,597
LSI Corp.*		3,690		16,826
Molex, Inc.		802		16,786
Tellabs, Inc.		2,190		16,316
Jabil Circuit, Inc.		1,130		16,283
JDS Uniphase Corp.*		1,280		15,859
MEMC Electronic Materials, Inc.*		1,308		15,591
Novellus Systems, Inc.*		530		14,087
Novell, Inc.*		2,020		12,059
Teradyne, Inc.*		1,038		11,563
QLogic Corp.*		630		11,113
Compuware Corp.*		1,280		10,919
Monster Worldwide, Inc.*		750		9,720
Total Information Technology				11,166,250
FINANCIALS - 10.7%
JPMorgan Chase & Co.		22,790		867,615
Berkshire Hathaway, Inc. — Class B*		9,943		822,087
Bank of America Corp.		57,660		755,923
Wells Fargo & Co.		30,072		755,709
Citigroup, Inc.*		136,531		532,471
Goldman Sachs Group, Inc.		2,960		427,957
American Express Co.		6,298		264,705
U.S. Bancorp		11,023		238,317
MetLife, Inc.		5,210		200,325
Morgan Stanley		8,029		198,156
Bank of New York Mellon Corp.		6,978		182,335
PNC Financial Services Group, Inc.		3,016		156,561
Simon Property Group, Inc.		1,687		156,452
Prudential Financial, Inc.		2,684		145,419
Travelers Companies, Inc.		2,700		140,670
Aflac, Inc.		2,707		139,979
ACE Ltd.		1,950		113,588
State Street Corp.		2,878		108,385
Capital One Financial Corp.		2,618		103,542
Chubb Corp.		1,810		103,152
CME Group, Inc. — Class A		386		100,534
Allstate Corp.		3,097		97,710
BB&T Corp.		3,979		95,814

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    23

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  S&P 500 FUND

			MARKET
	SHARES		VALUE
Franklin Resources, Inc.		840	$	89,796
Loews Corp.		2,144		81,258
Vornado Realty Trust		940		80,398
Progressive Corp.		3,840		80,141
Charles Schwab Corp.		5,698		79,202
Public Storage		812		78,796
Equity Residential		1,630		77,539
Marsh & McLennan Companies, Inc.		3,118		75,206
SunTrust Banks, Inc.		2,873		74,210
T. Rowe Price Group, Inc.		1,480		74,096
Ameriprise Financial, Inc.		1,440		68,155
Northern Trust Corp.		1,386		66,861
Boston Properties, Inc.		797		66,247
HCP, Inc.		1,776		63,900
AON Corp.		1,549		60,581
Hartford Financial Services Group, Inc.		2,557		58,683
Invesco Ltd.		2,690		57,109
Fifth Third Bancorp		4,580		55,097
Host Hotels & Resorts, Inc.		3,783		54,778
Regions Financial Corp.		7,220		52,489
Discover Financial Services		3,130		52,208
AvalonBay Communities, Inc.		490		50,926
Weyerhaeuser Co.		3,091		48,714
Principal Financial Group, Inc.		1,842		47,745
Ventas, Inc.		905		46,671
IntercontinentalExchange, Inc.*		430		45,030
Lincoln National Corp.		1,816		43,439
NYSE Euronext		1,500		42,855
XL Group plc — Class A		1,970		42,670
Unum Group		1,880		41,642
M&T Bank Corp.		500		40,905
KeyCorp		5,056		40,246
Comerica, Inc.		1,020		37,893
Hudson City Bancorp, Inc.		3,031		37,160
Kimco Realty Corp.		2,326		36,635
Health Care REIT, Inc.		758		35,884
Genworth Financial, Inc. — Class A*		2,815		34,399
Plum Creek Timber Company, Inc.		936		33,041
ProLogis		2,740		32,277
SLM Corp.*		2,788		32,201
American International Group, Inc.*		780		30,498
CB Richard Ellis Group, Inc. — Class A*		1,656		30,272
Moody’s Corp.		1,170		29,227
People’s United Financial, Inc.		2,130		27,882
Legg Mason, Inc.		890		26,976
Cincinnati Financial Corp.		930		26,831
Leucadia National Corp.		1,133		26,761
Assurant, Inc.		620		25,234
Torchmark Corp.		460		24,444

			MARKET
	SHARES		VALUE
Huntington Bancshares, Inc.		4,120	$	23,360
Zions Bancorporation		1,000		21,360
Marshall & Ilsley Corp.		3,026		21,303
E*Trade Financial Corp.*		1,143		16,619
NASDAQ OMX Group, Inc.*		830		16,127
First Horizon National Corp.*		1,339		15,278
Apartment Investment & Management Co. — Class A		680		14,538
Federated Investors, Inc. — Class B		530		12,063
Janus Capital Group, Inc.		1,060		11,607
Total Financials				9,324,869
HEALTH CARE - 8.0%
Johnson & Johnson		15,830		980,827
Pfizer, Inc.		46,190		793,082
Merck & Company, Inc.		17,690		651,169
Abbott Laboratories		8,873		463,526
Amgen, Inc.*		5,507		303,491
Bristol-Myers Squibb Co.		9,850		267,034
UnitedHealth Group, Inc.		6,460		226,811
Eli Lilly & Co.		5,833		213,079
Medtronic, Inc.		6,210		208,532
Gilead Sciences, Inc.*		4,817		171,533
Baxter International, Inc.		3,360		160,306
Celgene Corp.*		2,640		152,090
Express Scripts, Inc. — Class A*		3,120		151,944
WellPoint, Inc.*		2,296		130,045
Medco Health Solutions, Inc.*		2,490		129,629
Allergan, Inc.		1,780		118,423
Thermo Fisher Scientific, Inc.*		2,340		112,039
Genzyme Corp.*		1,460		103,353
Becton Dickinson and Co.		1,330		98,553
Stryker Corp.		1,960		98,098
McKesson Corp.		1,500		92,670
Biogen Idec, Inc.*		1,390		78,007
Aetna, Inc.		2,400		75,864
St. Jude Medical, Inc.*		1,883		74,077
Cardinal Health, Inc.		2,030		67,071
Intuitive Surgical, Inc.*		230		65,260
Zimmer Holdings, Inc.*		1,150		60,180
CIGNA Corp.		1,570		56,175
Hospira, Inc.*		960		54,730
Boston Scientific Corp.*		8,716		53,429
Forest Laboratories, Inc.*		1,640		50,725
Humana, Inc.*		980		49,235
AmerisourceBergen Corp. — Class A		1,600		49,056
Life Technologies Corp.*		1,047		48,884
Laboratory Corporation of America Holdings*		590		46,274
CR Bard, Inc.		550		44,786
Quest Diagnostics, Inc.		850		42,900
Varian Medical Systems, Inc.*		700		42,350
DaVita, Inc.*		590		40,728

24    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  S&P 500 FUND

			MARKET
	SHARES		VALUE
Waters Corp.*		540	$	38,221
Cerner Corp.*		410		34,436
Mylan, Inc.*		1,776		33,407
CareFusion Corp.*		1,280		31,795
Cephalon, Inc.*		440		27,474
Watson Pharmaceuticals, Inc.*		620		26,232
DENTSPLY International, Inc.		820		26,215
Coventry Health Care, Inc.*		860		18,516
Patterson Companies, Inc.		563		16,130
PerkinElmer, Inc.		680		15,735
King Pharmaceuticals, Inc.*		1,430		14,243
Tenet Healthcare Corp.*		2,789		13,164
Total Health Care				6,921,533
CONSUMER STAPLES - 7.8%
Procter & Gamble Co.		16,310		978,111
Coca-Cola Co.		13,274		776,794
Wal-Mart Stores, Inc.		11,490		614,945
PepsiCo, Inc.		9,140		607,262
Philip Morris International, Inc.		10,530		589,891
Kraft Foods, Inc. — Class A		10,024		309,341
Altria Group, Inc.		11,976		287,663
CVS Caremark Corp.		7,810		245,781
Colgate-Palmolive Co.		2,790		214,439
Walgreen Co.		5,590		187,265
Costco Wholesale Corp.		2,520		162,515
Kimberly-Clark Corp.		2,350		152,867
General Mills, Inc.		3,690		134,833
Archer-Daniels-Midland Co.		3,670		117,146
Sysco Corp.		3,380		96,398
HJ Heinz Co.		1,826		86,498
Kroger Co.		3,690		79,925
Avon Products, Inc.		2,468		79,247
Kellogg Co.		1,500		75,765
Lorillard, Inc.		870		69,870
Mead Johnson Nutrition Co. — Class A		1,184		67,381
Coca-Cola Enterprises, Inc.		1,913		59,303
Reynolds American, Inc.		970		57,608
ConAgra Foods, Inc.		2,530		55,508
Hershey Co.		1,136		54,062
Clorox Co.		800		53,408
Sara Lee Corp.		3,806		51,115
Dr Pepper Snapple Group, Inc.		1,380		49,018
Safeway, Inc.		2,200		46,552
Whole Foods Market, Inc.*		1,167		43,307
Molson Coors Brewing Co. — Class B		910		42,970
JM Smucker Co.		692		41,887
Estee Lauder Companies, Inc. — Class A		660		41,732
Campbell Soup Co.		1,110		39,682
Brown-Forman Corp. — Class B		600		36,984
McCormick & Company, Inc.		770		32,371
Constellation Brands, Inc. — Class A*		1,630		28,835

			MARKET
	SHARES		VALUE
Tyson Foods, Inc. — Class A		1,720	$	27,554
Hormel Foods Corp.		400		17,840
SUPERVALU, Inc.		1,220		14,067
Dean Foods Co.*		1,054		10,761
Total Consumer Staples				6,738,501
ENERGY - 7.5%
Exxon Mobil Corp.		29,260		1,807,975
Chevron Corp.		11,549		936,046
ConocoPhillips		8,520		489,304
Schlumberger Ltd.		7,846		483,392
Occidental Petroleum Corp.		4,672		365,818
Apache Corp.		2,096		204,905
Halliburton Co.		5,229		172,923
Anadarko Petroleum Corp.		2,849		162,535
Devon Energy Corp.		2,510		162,497
EOG Resources, Inc.		1,460		135,736
Marathon Oil Corp.		4,078		134,982
National Oilwell Varco, Inc.		2,406		106,995
Baker Hughes, Inc.		2,476		105,478
Hess Corp.		1,680		99,322
Chesapeake Energy Corp.		3,756		85,073
Spectra Energy Corp.		3,728		84,066
Peabody Energy Corp.		1,550		75,966
Noble Energy, Inc.		1,009		75,766
Murphy Oil Corp.		1,100		68,112
Southwestern Energy Co.*		1,990		66,546
Williams Companies, Inc.		3,359		64,190
Cameron International Corp.*		1,390		59,714
Valero Energy Corp.		3,252		56,943
El Paso Corp.		4,053		50,176
Consol Energy, Inc.		1,298		47,974
FMC Technologies, Inc.*		690		47,120
Pioneer Natural Resources Co.		670		43,570
Denbury Resources, Inc.*		2,303		36,595
Range Resources Corp.		918		35,003
EQT Corp.		863		31,120
QEP Resources, Inc.		1,010		30,441
Nabors Industries Ltd.*		1,638		29,582
Diamond Offshore Drilling, Inc.		404		27,379
Sunoco, Inc.		690		25,185
Helmerich & Payne, Inc.		610		24,681
Rowan Companies, Inc.*		660		20,038
Massey Energy Co.		588		18,240
Cabot Oil & Gas Corp.		600		18,066
Tesoro Corp.		825		11,022
Total Energy				6,500,476
INDUSTRIALS - 7.4%
General Electric Co.		61,441		998,416
United Technologies Corp.		5,340		380,368
United Parcel Service, Inc. — Class B		5,702		380,266
3M Co.		4,098		355,337
Caterpillar, Inc.		3,623		285,058
Boeing Co.		4,200		279,468

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    25

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  S&P 500 FUND

			MARKET
	SHARES		VALUE
Union Pacific Corp.		2,860	$	233,948
Emerson Electric Co.		4,319		227,438
Honeywell International, Inc.		4,443		195,225
Deere & Co.		2,440		170,263
FedEx Corp.		1,813		155,011
General Dynamics Corp.		2,190		137,554
Illinois Tool Works, Inc.		2,890		135,888
Norfolk Southern Corp.		2,120		126,161
Danaher Corp.		3,080		125,079
Lockheed Martin Corp.		1,710		121,889
CSX Corp.		2,180		120,598
Tyco International Ltd.		2,860		105,048
Precision Castparts Corp.		820		104,427
Cummins, Inc.		1,140		103,261
Northrop Grumman Corp.		1,700		103,071
PACCAR, Inc.		2,098		101,019
Raytheon Co.		2,150		98,276
Waste Management, Inc.		2,740		97,928
Eaton Corp.		973		80,263
CH Robinson Worldwide, Inc.		946		66,144
Parker Hannifin Corp.		927		64,946
Republic Services, Inc. — Class A		2,125		64,791
Expeditors International of Washington, Inc.		1,220		56,401
Southwest Airlines Co.		4,286		56,018
Dover Corp.		1,070		55,865
Goodrich Corp.		720		53,086
Rockwell Collins, Inc.		900		52,425
Fluor Corp.		1,032		51,115
Rockwell Automation, Inc.		820		50,619
ITT Corp.		1,059		49,593
L-3 Communications Holdings, Inc.		660		47,698
First Solar, Inc.*		310		45,678
Fastenal Co.		850		45,211
WW Grainger, Inc.		340		40,497
Flowserve Corp.		330		36,109
Roper Industries, Inc.		540		35,197
Stericycle, Inc.*		486		33,767
Textron, Inc.		1,580		32,485
Pall Corp.		670		27,899
Jacobs Engineering Group, Inc.*		720		27,864
Iron Mountain, Inc.		1,164		26,004
Pitney Bowes, Inc.		1,190		25,442
Avery Dennison Corp.		630		23,386
Quanta Services, Inc.*		1,208		23,049
Masco Corp.		2,070		22,791
Equifax, Inc.		718		22,402
Robert Half International, Inc.		850		22,100
Dun & Bradstreet Corp.		290		21,501
Cintas Corp.		768		21,158
RR Donnelley & Sons Co.		1,190		20,182
Snap-On, Inc.		343		15,953
Ryder System, Inc.		300		12,831
Total Industrials				6,471,467

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY - 7.1%
McDonald’s Corp.		6,120	$	456,001
Walt Disney Co.		10,990		363,879
Amazon.com, Inc.*		2,029		318,675
Home Depot, Inc.		9,570		303,178
Comcast Corp. — Class A		16,130		291,630
Ford Motor Co.*		19,765		241,924
Target Corp.		4,150		221,776
DIRECTV — Class A*		5,277		219,682
Time Warner, Inc.		6,460		197,999
Lowe’s Companies, Inc.		8,060		179,657
NIKE, Inc. — Class B		2,220		177,911
News Corp. — Class A*		13,100		171,086
Viacom, Inc. — Class B		3,490		126,303
Yum! Brands, Inc.		2,676		123,257
Johnson Controls, Inc.		3,874		118,157
Time Warner Cable, Inc. — Class A		2,039		110,086
Starbucks Corp.		4,250		108,715
TJX Companies, Inc.		2,300		102,649
Priceline.com, Inc.*		283		98,580
Carnival Corp.		2,500		95,525
Kohl’s Corp.*		1,766		93,033
Staples, Inc.		4,196		87,780
Best Buy Company, Inc.		1,988		81,170
Coach, Inc.		1,710		73,462
Discovery Communications, Inc. — Class A*		1,637		71,291
Omnicom Group, Inc.		1,730		68,300
Bed Bath & Beyond, Inc.*		1,516		65,810
CBS Corp. — Class B		3,909		61,997
Marriott International, Inc. — Class A		1,652		59,191
McGraw-Hill Companies, Inc.		1,780		58,847
Stanley Black & Decker, Inc.		950		58,216
Starwood Hotels & Resorts Worldwide, Inc.		1,090		57,280
Macy’s, Inc.		2,426		56,016
Mattel, Inc.		2,070		48,562
The Gap, Inc.		2,530		47,159
Fortune Brands, Inc.		876		43,125
O’Reilly Automotive, Inc.*		798		42,454
Limited Brands, Inc.		1,530		40,973
Genuine Parts Co.		910		40,577
VF Corp.		500		40,510
Harley-Davidson, Inc.		1,360		38,678
Wynn Resorts Ltd.		440		38,179
AutoZone, Inc.*		166		37,999
Ross Stores, Inc.		690		37,688
Apollo Group, Inc. — Class A*		730		37,485
JC Penney Company, Inc.		1,360		36,965
Nordstrom, Inc.		970		36,084
CarMax, Inc.*		1,290		35,939
Hasbro, Inc.		804		35,786
Whirlpool Corp.		440		35,622

26    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  S&P 500 FUND

			MARKET
	SHARES		VALUE
Tiffany & Co.		730	$	34,303
Darden Restaurants, Inc.		800		34,224
Family Dollar Stores, Inc.		770		34,003
Expedia, Inc.		1,186		33,457
Polo Ralph Lauren Corp. — Class A		366		32,889
Newell Rubbermaid, Inc.		1,600		28,496
Wyndham Worldwide Corp.		1,030		28,294
Interpublic Group of Companies, Inc.*		2,808		28,164
International Game Technology		1,717		24,811
Scripps Networks Interactive, Inc. — Class A		519		24,694
Urban Outfitters, Inc.*		750		23,580
H&R Block, Inc.		1,770		22,922
Abercrombie & Fitch Co. — Class A		510		20,053
Leggett & Platt, Inc.		840		19,118
Sears Holdings Corp.*		260		18,756
DR Horton, Inc.		1,608		17,881
DeVry, Inc.		356		17,519
GameStop Corp. — Class A*		870		17,148
Pulte Group, Inc.*		1,940		16,994
Gannett Company, Inc.		1,370		16,755
Washington Post Co. — Class B		40		15,976
RadioShack Corp.		720		15,358
Goodyear Tire & Rubber Co.*		1,399		15,039
Big Lots, Inc.*		430		14,298
Lennar Corp. — Class A		920		14,150
Harman International Industries, Inc.*		405		13,531
AutoNation, Inc.*		360		8,370
Office Depot, Inc.*		1,589		7,309
Meredith Corp.		210		6,995
Eastman Kodak Co.*		1,536		6,451
New York Times Co. — Class A*		694		5,372
Total Consumer Discretionary				6,209,758
UTILITIES - 2.5%
Southern Co.		4,772		177,709
Exelon Corp.		3,804		161,974
Dominion Resources, Inc.		3,390		148,007
Duke Energy Corp.		7,576		134,171
NextEra Energy, Inc.		2,403		130,699
PG&E Corp.		2,248		102,104
American Electric Power Company, Inc.		2,757		99,886
Public Service Enterprise Group, Inc.		2,906		96,131
Entergy Corp.		1,070		81,887
Consolidated Edison, Inc.		1,623		78,261
Sempra Energy		1,430		76,934
PPL Corp.		2,766		75,318
Progress Energy, Inc.		1,680		74,626
FirstEnergy Corp.		1,756		67,676
Edison International		1,866		64,172
Xcel Energy, Inc.		2,640		60,641

			MARKET
	SHARES		VALUE
DTE Energy Co.		970	$	44,552
AES Corp.*		3,830		43,471
Ameren Corp.		1,377		39,107
Wisconsin Energy Corp.		670		38,726
CenterPoint Energy, Inc.		2,416		37,980
Constellation Energy Group, Inc.		1,170		37,721
NRG Energy, Inc.*		1,450		30,189
Northeast Utilities		1,020		30,162
NiSource, Inc.		1,601		27,858
Oneok, Inc.		616		27,745
SCANA Corp.		650		26,208
Pinnacle West Capital Corp.		616		25,422
Pepco Holdings, Inc.		1,289		23,975
Allegheny Energy, Inc.		970		23,784
CMS Energy Corp.		1,316		23,714
Integrys Energy Group, Inc.		450		23,427
TECO Energy, Inc.		1,226		21,234
Nicor, Inc.		273		12,509
Total Utilities				2,167,980
MATERIALS - 2.4% E. I. du Pont de Nemours & Co.		5,210		232,470
Freeport-McMoRan Copper & Gold, Inc. — Class B		2,710		231,407
Dow Chemical Co.		6,667		183,076
Newmont Mining Co.		2,838		178,255
Praxair, Inc.		1,761		158,948
Monsanto Co.		3,110		149,062
Air Products & Chemicals, Inc.		1,216		100,709
Alcoa, Inc.		5,870		71,086
PPG Industries, Inc.		960		69,888
Nucor Corp.		1,813		69,257
Ecolab, Inc.		1,346		68,296
International Paper Co.		2,508		54,549
Cliffs Natural Resources, Inc.		780		49,858
Sigma-Aldrich Corp.		700		42,266
CF Industries Holdings, Inc.		410		39,155
Sherwin-Williams Co.		520		39,073
United States Steel Co.		830		36,387
Ball Corp.		530		31,190
Eastman Chemical Co.		420		31,080
Airgas, Inc.		430		29,218
FMC Corp.		420		28,732
Vulcan Materials Co.		738		27,247
Allegheny Technologies, Inc.		573		26,616
Owens-Illinois, Inc.*		940		26,376
Pactiv Corp.*		780		25,724
MeadWestvaco Corp.		986		24,039
International Flavors & Fragrances, Inc.		457		22,174
Sealed Air Corp.		917		20,614
Bemis Company, Inc.		626		19,876
Titanium Metals Corp.*		516		10,299
AK Steel Holding Corp.		627		8,659
Total Materials				2,105,586

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    27

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  S&P 500 FUND

			MARKET
	SHARES		VALUE
TELECOMMUNICATION SERVICES - 2.2%
AT&T, Inc.		33,964	$	971,370
Verizon Communications, Inc.		16,236		529,131
American Tower Corp. — Class A*		2,310		118,411
Sprint Nextel Corp.*		17,149		79,400
CenturyLink, Inc.		1,739		68,621
Qwest Communications International, Inc.		9,995		62,669
Frontier Communications Corp.		5,700		46,569
Windstream Corp.		2,780		34,166
MetroPCS Communications, Inc.*		1,510		15,795
Total Telecommunication Services				1,926,132
Total Common Stocks (Cost $39,629,541)				59,532,552
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 29.7%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	8,938,624		8,938,624
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		8,928,673		8,928,673
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		3,689,534		3,689,534
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		3,316,304		3,316,304
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		922,384		922,384
Total Repurchase Agreements (Cost $25,795,519)				25,795,519
Total Investments – 98.1% (Cost $65,425,060)			$	85,328,071
Cash & Other Assets, Less Liabilities – 1.9%				1,661,595
Total Net Assets – 100.0%			$	86,989,666

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED†
December 2010 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $15,733,600)		277	$	68,034
		UNITS
EQUITY INDEX SWAP AGREEMENTS††
Morgan Stanley Capital Services, Inc. October 2010 S&P 500 Index Swap, Terminating 10/26/103
(Notional Market Value
$2,846,054)		2,494	$	(1,606	)
Goldman Sachs International
October 2010 S&P 500
Index Swap, Terminating
10/27/103
(Notional Market Value
$3,257,071)		2,854		(15,153	)
Credit Suisse Capital, LLC
October 2010 S&P 500
Index Swap, Terminating
10/29/103
(Notional Market Value
$5,821,662)		5,101		(17,924	)
(Total Notional Market Value
$11,924,787)			$	(34,683	)

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

28    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P 500 FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	59,532,552
Repurchase agreement, at value		25,795,519
Total investments		85,328,071
Segregated cash with broker		927,556
Cash		262
Receivables:
Securities sold		14,826,857
Fund shares sold		14,129,915
Dividends		97,208
Interest		141
Total assets		115,310,010
Liabilities:
Unrealized depreciation on swap agreements		34,683
Payable for:
Swap settlement		29,048
Variation margin		35,582
Fund shares redeemed		28,023,522
Management fees		60,300
Custodian fees		2,653
Transfer agent/maintenance fees		20,100
Distribution and service fees		24,790
Portfolio accounting fees		8,040
Other		81,626
Total liabilities		28,320,344
Net assets	$	86,989,666
Net assets consist of:
Paid in capital		123,359,211
Accumulated net investment loss		(106,791	)
Accumulated net realized loss on sale of investments		(56,199,116	)
Net unrealized appreciation in value of investments		19,936,362
Net assets		86,989,666
A-Class:
Net assets	$	8,052,306
Capital shares outstanding		354,500
Net asset value per share		$22.71
Maximum offering price per share*		$23.84
C-Class:
Net assets	$	6,782,640
Capital shares outstanding		309,007
Net asset value per share		$21.95
H-Class:
Net assets	$	72,154,720
Capital shares outstanding		3,179,158
Net asset value per share		$22.70
Investments, at cost	$	39,629,541
Repurchase agreement, at cost		25,795,519
Total cost	$	65,425,060

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	1,074,964
Interest		41,101
Other income		572
Total investment income		1,116,637
Expenses:
Management fees		582,439
Transfer agent and administrative fees		194,147
Distribution and Service Fees:
A-Class		28,736
C-Class		46,453
H-Class		153,797
Portfolio accounting fees		77,336
Trustees’ fees**		7,626
Miscellaneous		132,894
Total expenses		1,223,428
Net investment loss		(106,791	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		2,567,844
Equity index swaps		(4,167,636	)
Futures contracts		(867,091	)
Net realized loss		(2,466,883	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(10,947,338	)
Equity index swaps		(2,210,387	)
Futures contracts		67,293
Net unrealized depreciation		(13,090,432	)
Net loss		(15,557,315	)
Net decrease in net assets resulting from operations	$	(15,664,106	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    29

  S&P 500 FUND  

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(106,791	)	$	408,186
Net realized gain (loss) during the period on investments		(2,466,883	)		12,709,584
Net unrealized appreciation (depreciation) during the period on investments		(13,090,432	)		43,947,609
Net increase (decrease) in net assets resulting from operations		(15,664,106	)		57,065,379
Distributions to shareholders from:
Net investment income
A-Class		—			(214,408	)
C-Class		—			(58,232	)
H-Class		—			(482,360	)
Total distributions to shareholders		—			(755,000	)
Capital share transactions:
Proceeds from sale of shares
A-Class		38,430,018			127,800,637
C-Class		85,814,304			176,980,665
H-Class		620,540,003			861,487,506
Distributions reinvested
A-Class		—			209,596
C-Class		—			55,329
H-Class		—			471,404
Cost of shares redeemed
A-Class		(74,380,793	)		(123,598,227	)
C-Class		(89,894,954	)		(175,801,622	)
H-Class		(729,816,052	)		(848,417,642	)
Net increase (decrease) from capital share transactions		(149,307,474	)		19,187,646
Net increase (decrease) in net assets		(164,971,580	)		75,498,025
Net assets:
Beginning of period		251,961,246			176,463,221
End of period	$	86,989,666		$	251,961,246
Accumulated net investment loss at end of period	$	(106,791	)	$	—
Capital share activity:
Shares sold
A-Class		1,720,323			6,051,794
C-Class		3,958,702			8,799,827
H-Class		28,128,151			42,212,414
Shares reinvested
A-Class		—			9,536
C-Class		—			2,580
H-Class		—			21,463
Shares redeemed
A-Class		(3,363,458	)		(5,926,421	)
C-Class		(4,158,808	)		(8,765,777	)
H-Class		(33,330,177	)		(42,711,431	)
Total capital share activity		(7,045,267	)		(306,015	)

30    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  S&P 500 FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007		b
Per Share Data
Net asset value, beginning of period		$23.18			$15.79			$25.92			$27.32			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.01	)		.07			.12			.52			.30
Net gain (loss) on securities (realized and unrealized)		(.46	)		7.43			(10.21	)		(1.78	)		2.53
Total from investment operations		(.47	)		7.50			(10.09	)		(1.26	)		2.83
Less distributions:
Distributions from net investment income		—			(.11	)		(.04	)		(.14	)		(.11	)
Distributions from realized gains		—			—			—			—			(.40	)
Total distributions		—			(.11	)		(.04	)		(.14	)		(.51	)
Net asset value, end of period		$22.71			$23.18			$15.79			$25.92			$27.32
Total Returnd		(2.03%	)		47.55%			(38.95%	)		(4.68%	)		11.34%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,052			$46,312			$29,409			$2,358			$2,063
Ratios to average net assets:
Net investment income (loss)		(0.12%	)		0.34%			0.68%			1.86%			1.35%	e
Total expenses		1.53%			1.53%			1.52%			1.51%			1.55%	e
Portfolio turnover rate		147%			58%			168%			396%			119%

	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007		b
Per Share Data
Net asset value, beginning of period		$22.50			$15.44			$25.55			$27.15			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.09	)		(.08	)		(.02	)		.18			.19
Net gain (loss) on securities (realized and unrealized)		(.46	)		7.25			(10.05	)		(1.64	)		2.47
Total from investment operations		(.55	)		7.17			(10.07	)		(1.46	)		2.66
Less distributions:
Distributions from net investment income		—			(.11	)		(.04	)		(.14	)		(.11	)
Distributions from realized gains		—			—			—			—			(.40	)
Total distributions		—			(.11	)		(.04	)		(.14	)		(.51	)
Net asset value, end of period		$21.95			$22.50			$15.44			$25.55			$27.15
Total Returnd		(2.44%	)		46.49%			(39.43%	)		(5.45%	)		10.65%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,783			$11,456			$7,295			$7,836			$1,971
Ratios to average net assets:
Net investment income (loss)		(0.80%	)		(0.41%	)		(0.08%	)		0.67%			0.84%	e
Total expenses		2.28%			2.28%			2.28%			2.25%			2.25%	e
Portfolio turnover rate		147%			58%			168%			396%			119%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    31

  S&P 500 FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007		b
Per Share Data
Net asset value, beginning of period		$23.17			$15.78			$25.90			$27.31			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.01	)		.06			.13			.39			.30
Net gain (loss) on securities (realized and unrealized)		(.46	)		7.44			(10.21	)		(1.66	)		2.52
Total from investment operations		(.47	)		7.50			(10.08	)		(1.27	)		2.82
Less distributions:
Distributions from net investment income		—			(.11	)		(.04	)		(.14	)		(.11	)
Distributions from realized gains		—			—			—			—			(.40	)
Total distributions		—			(.11	)		(.04	)		(.14	)		(.51	)
Net asset value, end of period		$22.70			$23.17			$15.78			$25.90			$27.31
Total Returnd		(2.03%	)		47.58%			(38.94%	)		(4.72%	)		11.29%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$72,155			$194,193			$139,759			$78,963			$6,374
Ratios to average net assets:
Net investment income (loss)		(0.09%	)		0.29%			0.64%			1.40%			1.33%	e
Total expenses		1.53%			1.53%			1.53%			1.48%			1.54%	e
Portfolio turnover rate		147%			58%			168%			396%			119%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations May 31, 2006.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Annualized

32    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

INVERSE S&P 500 STRATEGY FUND

OBJECTIVE: To provide investment results that inversely correlate to the performance of the S&P 500 Index (the “underlying index”) on a daily basis.

Holdings Diversification (Market Exposure as % of Net Assets)

“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 derivative investments such as equity index swap agreements and futures contracts.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    33

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INVERSE S&P 500 STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES†† - 54.4%
Freddie Mac1
0.20% due 11/23/10	$	25,000,000	$	24,995,575
0.25% due 10/13/10		20,000,000		19,998,333
0.26% due 11/02/10		20,000,000		19,997,860
0.24% due 06/01/11		20,000,000		19,973,000
Fannie Mae1
0.20% due 11/15/10		25,000,000		24,996,250
0.37% due 12/01/10		25,000,000		24,994,075
0.24% due 12/29/10		25,000,000		24,991,350
Total Federal Agency Discount Notes
(Cost $159,917,193)				159,946,443
FEDERAL AGENCY NOTES†† - 8.5%
Federal Home Loan Bank2
0.25% due 12/28/10		25,000,000		25,002,400
Total Federal Agency Notes
(Cost $25,000,000)				25,002,400
WORLD BANK DISCOUNT NOTE†† - 8.5%
World Bank
0.35% due 11/08/10		25,000,000		24,996,825
Total World Bank Discount Note
(Cost $24,990,764)				24,996,825
REPURCHASE AGREEMENTS††,3 - 27.5%
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/104		46,246,230		46,246,230
Mizuho Financial Group, Inc.
issued 09/30/10 at 0.20%
due 10/01/10		13,797,963		13,797,963
HSBC Group
issued 09/30/10 at 0.20%
due 10/01/10		13,782,602		13,782,602
Morgan Stanley
issued 09/30/10 at 0.19%
due 10/01/10		5,695,290		5,695,290
Deutsche Bank
issued 09/30/10 at 0.20%
due 10/01/10		1,423,823		1,423,823
Total Repurchase Agreements
(Cost $80,945,908)				80,945,908
Total Investments – 98.9%
(Cost $290,853,865)			$	290,891,576
Cash & Other Assets,
Less Liabilities – 1.1%				3,029,839
Total Net Assets – 100.0%			$	293,921,415

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS SOLD SHORT†
December 2010 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $12,780,000)		225	$	81,111
		UNITS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2010 S&P 500 Index Swap, Terminating 10/29/105 (Notional Market Value
$115,404,710)		101,126	$	350,031
Goldman Sachs International October 2010 S&P 500 Index Swap, Terminating 10/27/105 (Notional Market Value
$156,383,201)		137,034		85,941
Morgan Stanley Capital Services, Inc. October 2010 S&P 500 Index Swap, Terminating 10/26/105 (Notional Market Value
$8,572,808)		7,512		4,658
(Total Notional Market Value $280,360,719)			$	440,630

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 7.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
5	Total Return based on S&P 500 Index +/- financing at a variable rate.

34    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

2

  INVERSE S&P 500 STRATEGY FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	209,945,668
Repurchase agreement, at value		80,945,908
Total investments		290,891,576
Segregated cash with broker		2,128,162
Unrealized appreciation on swap agreements		440,630
Receivables:
Variation margin		55,125
Fund shares sold		1,180,018
Interest		16,568
Total assets		294,712,079
Liabilities:
Payable for:
Fund shares redeemed		261,004
Management fees		239,050
Custodian fees		8,765
Transfer agent/maintenance fees		66,403
Distribution and service fees		29,916
Portfolio accounting fees		25,058
Other		160,468
Total liabilities		790,664
Net assets	$	293,921,415
Net assets consist of:
Paid in capital		625,725,958
Accumulated net investment loss		(2,042,465	)
Accumulated net realized loss on sale of investments		(330,321,530	)
Net unrealized appreciation in value of investments		559,452
Net assets		293,921,415
Investor Class:
Net assets	$	235,413,976
Capital shares outstanding		6,944,208
Net asset value per share		$33.90
Advisor Class:
Net assets	$	25,393,349
Capital shares outstanding		805,368
Net asset value per share		$31.53
A-Class:
Net assets	$	14,642,037
Capital shares outstanding		458,402
Net asset value per share		$31.94
Maximum offering price per share*		$33.53
C-Class:
Net assets	$	18,472,053
Capital shares outstanding		605,076
Net asset value per share		$30.53
Investments, at cost	$	209,907,957
Repurchase agreement, at cost		80,945,908
Total cost	$	290,853,865

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	336,908
Total investment income		336,908
Expenses:
Management fees		1,393,747
Transfer agent and administrative fees		387,152
Distribution and Service Fees:
Advisor Class		55,590
A-Class		39,057
C-Class		86,978
Portfolio accounting fees		146,952
Trustees’ fees**		9,576
Miscellaneous		260,321
Total expenses		2,379,373
Net investment loss		(2,042,465	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Equity index swaps		(2,080,570	)
Futures contracts		(23,138,051	)
Net realized loss		(25,218,621	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		20,000
Equity index swaps		7,005,563
Futures contracts		(2,395	)
Net unrealized appreciation		7,023,168
Net loss		(18,195,453	)
Net decrease in net assets resulting from operations	$	(20,237,918	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    35

  INVERSE S&P 500 STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(2,042,465	)	$	(2,962,824	)
Net realized loss during the period on investments		(25,218,621	)		(136,665,271	)
Net unrealized appreciation during the period on investments		7,023,168			15,795,098
Net decrease in net assets resulting from operations		(20,237,918	)		(123,832,997	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(300,599	)
Advisor Class		—			(11,483	)
A-Class		—			(46,691	)
C-Class		—			(28,291	)
Total distributions to shareholders		—			(387,064	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		459,111,566			942,697,042
Advisor Class		54,748,071			53,161,952
A-Class		40,906,812			78,958,664
C-Class		18,463,035			67,595,341
Distributions reinvested
Investor Class		—			286,564
Advisor Class		—			10,548
A-Class		—			42,604
C-Class		—			23,464
Cost of shares redeemed
Investor Class		(378,320,908	)		(889,787,263	)
Advisor Class		(36,917,287	)		(53,392,982	)
A-Class		(54,098,475	)		(59,041,010	)
C-Class		(15,369,558	)		(61,798,174	)
Net increase from capital share transactions		88,523,256			78,756,750
Net increase (decrease) in net assets		68,285,338			(45,463,311	)
Net assets:
Beginning of period		225,636,077			271,099,388
End of period	$	293,921,415		$	225,636,077
Accumulated net investment loss at end of period	$	(2,042,465	)	$	—
Capital share activity:
Shares sold
Investor Class		12,656,038			22,518,195
Advisor Class		1,635,014			1,405,215
A-Class		1,216,976			2,007,978
C-Class		569,425			1,842,781
Shares reinvested
Investor Class		—			7,784
Advisor Class		—			307
A-Class		—			1,227
C-Class		—			702
Shares redeemed
Investor Class		(10,697,935	)		(21,554,903	)
Advisor Class		(1,129,331	)		(1,406,947	)
A-Class		(1,639,360	)		(1,486,753	)
C-Class		(479,851	)		(1,724,746	)
Total capital share activity		2,130,976			1,610,840

36    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

1

  INVERSE S&P 500 STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$34.38			$54.23			$40.00			$37.85			$40.30			$43.45
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.47	)		.12			.93			(.20	)		(.20	)
Net gain (loss) on securities (realized and unrealized)		(.27	)		(19.32	)		14.94			2.74			(1.15	)		(2.35	)
Total from investment operations		(.48	)		(19.79	)		15.06			3.67			(1.35	)		(2.55	)
Less distributions:
Distributions from net investment income		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Total distributions		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Net asset value, end of period		$33.90			$34.38			$54.23			$40.00			$37.85			$40.30
Total Returnc		(1.40%	)		(36.51%	)		37.66%			10.24%			(3.26%	)		(5.84%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$235,414			$171,423			$217,740			$223,044			$293,092			$329,785
Ratios to average net assets:
Net investment income (loss)		(1.20%	)		(1.16%	)		0.25%			3.08%			3.85%			(0.45%	)
Combined net investment incomef		—			—			—			—			—			2.29%
Total expensesg		1.42%			1.43%			1.43%			1.41%			1.36%			1.41%
Net expensesg		1.42%			1.43%			1.43%			1.41%			1.36%			1.38%
Portfolio turnover rate		—			—			—			—			—			—
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$32.06			$50.83			$37.72			$36.00			$38.55			$41.80
Income (loss) from investment operations:
Net investment income (loss)b		(.28	)		(.63	)		(.13	)		.73			(.35	)		(.40	)
Net gain (loss) on securities (realized and unrealized)		(.25	)		(18.08	)		14.07			2.51			(1.10	)		(2.25	)
Total from investment operations		(.53	)		(18.71	)		13.94			3.24			(1.45	)		(2.65	)
Less distributions:
Distributions from net investment income		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Total distributions		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Net asset value, end of period		$31.53			$32.06			$50.83			$37.72			$36.00			$38.55
Total Returnc		(1.65%	)		(36.82%	)		36.96%			9.56%			(3.67%	)		(6.32%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$25,393			$9,607			$15,305			$11,131			$22,712			$45,332
Ratios to average net assets:
Net investment income (loss)		(1.69%	)		(1.63%	)		(0.30%	)		2.64%			3.34%			(0.95%	)
Combined net investment incomef		—			—			—			—			—			1.79%
Total expensesg		1.92%			1.93%			1.93%			1.92%			1.87%			1.91%
Net expensesg		1.92%			1.93%			1.93%			1.92%			1.87%			1.88%
Portfolio turnover rate		—			—			—			—			—			—

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    37

2

  INVERSE S&P 500 STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$32.43			$51.30			$37.97			$36.10			$38.60			$41.85
Income (loss) from investment operations:
Net investment income (loss)b		(.25	)		(.53	)		—	d		.81			(.25	)		(.30	)
Net gain (loss) on securities (realized and unrealized)		(.24	)		(18.28	)		14.16			2.58			(1.15	)		(2.35	)
Total from investment operations		(.49	)		(18.81	)		14.16			3.39			(1.40	)		(2.65	)
Less distributions:
Distributions from net investment income		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Total distributions		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Net asset value, end of period		$31.94			$32.43			$51.30			$37.97			$36.10			$38.60
Total Returnc		(1.51%	)		(36.68%	)		37.30%			9.95%			(3.53%	)		(6.31%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$14,642			$28,565			$18,381			$9,344			$11,388			$8,932
Ratios to average net assets:
Net investment income (loss)		(1.46%	)		(1.42%	)		0.00%			2.83%			3.60%			(0.70%	)
Combined net investment incomef		—			—			—			—			—			2.04%
Total expensesg		1.68%			1.67%			1.68%			1.66%			1.61%			1.66%
Net expensesg		1.68%			1.67%			1.68%			1.66%			1.61%			1.63%
Portfolio turnover rate		—			—			—			—			—			—
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$31.12			$49.59			$37.00			$35.50			$38.25			$41.65
Income (loss) from investment operations:
Net investment income (loss)b		(.35	)		(.79	)		(.28	)		.58			(.55	)		(.60	)
Net gain (loss) on securities (realized and unrealized)		(.24	)		(17.62	)		13.70			2.44			(1.10	)		(2.20	)
Total from investment operations		(.59	)		(18.41	)		13.42			3.02			(1.65	)		(2.80	)
Less distributions:
Distributions from net investment income		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Total distributions		—			(.06	)		(.83	)		(1.52	)		(1.10	)		(.60	)
Net asset value, end of period		$30.53			$31.12			$49.59			$37.00			$35.50			$38.25
Total Returnc		(1.90%	)		(37.14%	)		36.27%			9.07%			(4.22%	)		(6.70%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$18,472			$16,041			$19,674			$32,299			$42,651			$39,146
Ratios to average net assets:
Net investment income (loss)		(2.20%	)		(2.15%	)		(0.67%	)		2.14%			2.85%			(1.45%	)
Combined net investment incomef		—			—			—			—			—			1.29%
Total expensesg		2.42%			2.43%			2.43%			2.41%			2.36%			2.41%
Net expensesg		2.42%			2.43%			2.43%			2.41%			2.36%			2.38%
Portfolio turnover rate		—			—			—			—			—			—

38    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

  INVERSE S&P 500 STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Less than $0.01 per share.
e	Reverse Shares Splits — Per share amounts for the years ended March 31, 2006 and March 31, 2007 have been restated to reflect a 1:5 reverse share split effective April 23, 2007.
Prior to April 1, 2007, the Inverse S&P 500 Strategy Fund operated under a Master-Feeder Structure.

f	Ratios represent combined net investment income of the former Master Portfolio and the Fund. Ratios shown under the caption “Combined Net Investment Income (Loss)” for the year ended March 31, 2006 and preceding periods did not reflect the net investment income of the former Master Portfolio.
g	Expense ratios to average net assets include expenses of the corresponding former Master Portfolio for the year ended March 31, 2007 and preceding periods.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    39

4

FUND PROFILE (Unaudited)

September 30, 2010

NASDAQ-100^® FUND

OBJECTIVE: To provide investment results that correspond to a benchmark for over-the-counter securities on a daily basis. The Fund’s current benchmark is the NASDAQ-100 Index^® (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Apple, Inc.	16.6	%
QUALCOMM, Inc.	4.0	%
Google, Inc. — Class A	3.6	%
Microsoft Corp.	3.4	%
Oracle Corp.	2.6	%
Amazon.com, Inc.	2.1	%
Cisco Systems, Inc.	2.1	%
Teva Pharmaceutical Industries Ltd. ADR	1.8	%
Intel Corp.	1.7	%
Gilead Sciences, Inc.	1.3	%
Top Ten Total	39.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

40    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

    NASDAQ-100^® FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 83.8%
INFORMATION TECHNOLOGY - 52.8%
Apple, Inc.*		362,801	$	102,944,784
QUALCOMM, Inc.		551,220		24,871,046
Google, Inc. — Class A*		42,694		22,448,078
Microsoft Corp.		847,980		20,767,030
Oracle Corp.		596,724		16,022,039
Cisco Systems, Inc.*		580,952		12,722,849
Intel Corp.		555,144		10,675,419
Baidu, Inc. ADR*		78,061		8,010,620
Research In Motion Ltd.*		150,380		7,322,002
eBay, Inc.*		278,641		6,798,840
Cognizant Technology Solutions Corp. — Class A*		83,495		5,382,923
NetApp, Inc.*		106,308		5,293,075
Intuit, Inc.*		112,674		4,936,248
Citrix Systems, Inc.*		63,243		4,315,702
Automatic Data Processing, Inc.		99,000		4,160,970
Broadcom Corp. — Class A		116,454		4,121,307
Adobe Systems, Inc.*		146,561		3,832,570
Altera Corp.		123,029		3,710,555
Symantec Corp.*		235,010		3,565,102
Activision Blizzard, Inc.		311,290		3,368,158
Marvell Technology Group Ltd.*		176,613		3,092,494
CA, Inc.		141,110		2,980,243
Fiserv, Inc.*		53,460		2,877,217
Paychex, Inc.		97,640		2,684,124
Dell, Inc.*		203,700		2,639,952
Linear Technology Corp.		85,411		2,624,680
Yahoo!, Inc.*		184,540		2,614,932
Xilinx, Inc.		97,770		2,601,660
SanDisk Corp.*		67,454		2,472,189
BMC Software, Inc.*		59,130		2,393,583
Applied Materials, Inc.		197,746		2,309,673
Check Point Software Technologies Ltd.*		58,400		2,156,712
Autodesk, Inc.*		67,400		2,154,778
Infosys Technologies Ltd. ADR		31,169		2,097,985
KLA-Tencor Corp.		57,910		2,040,169
NVIDIA Corp.*		160,490		1,874,523
Seagate Technology plc*		133,950		1,577,931
Electronic Arts, Inc.*		94,810		1,557,728
Maxim Integrated Products, Inc.		83,590		1,547,251
Lam Research Corp.*		36,510		1,527,944
VeriSign, Inc.*		46,750		1,483,845
Flextronics International Ltd.*		242,620		1,465,425
Microchip Technology, Inc.		44,008		1,384,052
FLIR Systems, Inc.*		47,106		1,210,624
Logitech International S.A.*		48,900		850,860
Total Information Technology				327,489,891

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY - 12.7%
Amazon.com, Inc.*		84,657	$	13,296,229
Starbucks Corp.		292,990		7,494,684
DIRECTV — Class A*		179,710		7,481,327
Comcast Corp. — Class A		412,417		7,456,499
News Corp. — Class A*		405,705		5,298,507
Priceline.com, Inc.*		14,570		5,075,314
Bed Bath & Beyond, Inc.*		101,044		4,386,320
Wynn Resorts Ltd.		38,340		3,326,762
Staples, Inc.		139,638		2,921,227
Mattel, Inc.		117,130		2,747,870
Sears Holdings Corp.*		32,950		2,377,013
Expedia, Inc.		79,590		2,245,234
Virgin Media, Inc.		96,666		2,225,251
Apollo Group, Inc. — Class A*		42,460		2,180,321
Liberty Media Corporation — Interactive*		156,165		2,141,022
O’Reilly Automotive, Inc.*		39,395		2,095,814
Ross Stores, Inc.		35,164		1,920,658
Garmin Ltd.		51,390		1,559,687
Urban Outfitters, Inc.*		47,350		1,488,684
DISH Network Corp. — Class A		61,532		1,178,953
Total Consumer Discretionary				78,897,376
HEALTH CARE - 11.8%
Teva Pharmaceutical Industries Ltd. ADR		208,550		11,001,012
Gilead Sciences, Inc.*		235,150		8,373,691
Celgene Corp.*		129,714		7,472,823
Amgen, Inc.*		127,197		7,009,827
Express Scripts, Inc. — Class A*		137,810		6,711,347
Genzyme Corp.*		90,960		6,439,058
Biogen Idec, Inc.*		74,880		4,202,266
Intuitive Surgical, Inc.*		11,194		3,176,185
Life Technologies Corp.*		52,826		2,466,446
Vertex Pharmaceuticals, Inc.*		60,400		2,088,028
Cerner Corp.*		23,390		1,964,526
Illumina, Inc.*		34,744		1,709,405
Mylan, Inc.*		89,493		1,683,363
Warner Chilcott plc — Class A		71,561		1,605,829
Henry Schein, Inc.*		25,979		1,521,850
Cephalon, Inc.*		20,847		1,301,687
DENTSPLY International, Inc.		39,040		1,248,109
Hologic, Inc.*		77,577		1,242,008
QIAGEN N.V.*		67,055		1,189,556
Patterson Companies, Inc.		33,858		970,032
Total Health Care				73,377,048
INDUSTRIALS - 3.9% PACCAR, Inc.		116,337		5,601,627
CH Robinson Worldwide, Inc.		46,684		3,264,145
First Solar, Inc.*		21,326		3,142,386
Expeditors International of Washington, Inc.		59,309		2,741,855
Fastenal Co.		40,129		2,134,461
Joy Global, Inc.		28,853		2,028,943

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    41

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  NASDAQ-100^® FUND

			MARKET
	SHARES		VALUE
Stericycle, Inc.*		25,520	$	1,773,130
Cintas Corp.		52,223		1,438,744
J.B. Hunt Transport Services, Inc.		35,090		1,217,623
Foster Wheeler AG*		37,927		927,694
Total Industrials				24,270,608
TELECOMMUNICATION SERVICES - 1.6%
Vodafone Group plc ADR		201,418		4,997,181
Millicom International Cellular S.A.		29,995		2,878,020
NII Holdings, Inc.*		46,604		1,915,424
Total Telecommunication Services				9,790,625
CONSUMER STAPLES - 0.7% Costco Wholesale Corp.		65,862		4,247,440
MATERIALS - 0.3% Sigma-Aldrich Corp.		33,178		2,003,288
Total Common Stocks (Cost $236,662,346)				520,076,276
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 14.3%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	32,206,947		32,206,947
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		32,171,091		32,171,091
Morgan Stanley issued 09/30/10 at 0.19%
due 10/01/10		13,293,839		13,293,839
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		7,419,589		7,419,589
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		3,323,460		3,323,460
Total Repurchase Agreements (Cost $88,414,926)				88,414,926
Total Investments – 98.1% (Cost $325,077,272)			$	608,491,202
Cash & Other Assets, Less Liabilities – 1.9%				11,845,394
Total Net Assets – 100.0%			$	620,336,596

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED†
December 2010 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of
Contracts $60,221,980)		1,508	$	2,589,189
		UNITS
EQUITY INDEX SWAP AGREEMENTS††
Morgan Stanley Capital Services, Inc. October 2010 NASDAQ-100 Index Swap, Terminating 10/26/103 (Notional Market
Value $5,898,847)		2,952	$	(38,524	)
Credit Suisse Capital, LLC October 2010 NASDAQ-100 Index Swap, Terminating 10/29/103 (Notional Market
Value $17,972,187)		8,995		(73,586	)
Goldman Sachs International October 2010 NASDAQ-100 Index Swap, Terminating 10/27/103 (Notional Market
Value $16,088,020)		8,052		(104,498	)
(Total Notional Market Value $39,959,054)			$	(216,608	)

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on NASDAQ-100 Index +/- financing at a variable rate. ADR — American Depositary Receipt plc — Public Limited Company

42    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  NASDAQ-100^® FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	520,076,276
Repurchase agreement, at value		88,414,926
Total investments		608,491,202
Segregated cash with broker		4,888,962
Cash		660,407
Receivables:
Fund shares sold		8,688,246
Dividends		88,156
Interest		483
Total assets		622,817,456
Liabilities:
Unrealized depreciation on swap agreements		216,608
Payable for:
Variation margin		350,318
Fund shares redeemed		950,520
Management fees		347,416
Custodian fees		15,286
Transfer agent/maintenance fees		115,805
Distribution and service fees		31,812
Portfolio accounting fees		38,547
Licensing fees		113,861
Other		300,687
Total liabilities		2,480,860
Net assets	$	620,336,596
Net assets consist of:
Paid in capital		769,259,357
Accumulated net investment loss		(1,202,397	)
Accumulated net realized loss on sale of investments		(433,506,875	)
Net unrealized appreciation in value of investments		285,786,511
Net assets		620,336,596
Investor Class:
Net assets	$	527,616,937
Capital shares outstanding		40,427,014
Net asset value per share		$13.05
Advisor Class:
Net assets	$	65,455,845
Capital shares outstanding		5,339,981
Net asset value per share		$12.26
A-Class:
Net assets	$	16,625,670
Capital shares outstanding		1,334,955
Net asset value per share		$12.45
Maximum offering price per share*		$13.07
C-Class:
Net assets	$	10,638,144
Capital shares outstanding		900,656
Net asset value per share		$11.81
Investments, at cost	$	236,662,346
Repurchase agreement, at cost		88,414,926
Total cost	$	325,077,272

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $30,393)	$	2,622,068
Interest		35,691
Total investment income		2,657,759
Expenses:
Management fees		2,132,775
Transfer agent and administrative fees		710,925
Distribution and Service Fees:
Advisor Class		103,435
A-Class		10,510
C-Class		51,434
Portfolio accounting fees		236,112
Trustees’ fees**		21,915
Miscellaneous		593,050
Total expenses		3,860,156
Net investment loss		(1,202,397	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		31,776,882
Equity index swaps		(3,091,703	)
Futures contracts		(2,485,833	)
Net realized gain		26,199,346
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(27,017,254	)
Equity index swaps		(295,444	)
Futures contracts		2,564,430
Net unrealized depreciation		(24,748,268	)
Net realized and unrealized gain		1,451,078
Net increase in net assets resulting from operations	$	248,681

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    43

    NASDAQ-100^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(1,202,397	)	$	(3,604,566	)
Net realized gain during the period on investments		26,199,346			15,245,004
Net unrealized appreciation (depreciation) during the period on investments		(24,748,268	)		216,908,868
Net increase in net assets resulting from operations		248,681			228,549,306
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		399,017,977			750,255,904
Advisor Class		245,144,754			155,543,357
A-Class		22,090,641			30,156,587
C-Class		10,599,933			24,010,905
Cost of shares redeemed
Investor Class		(445,705,141	)		(781,927,624	)
Advisor Class		(195,652,234	)		(164,471,567	)
A-Class		(20,152,248	)		(20,940,455	)
C-Class		(12,220,564	)		(21,740,962	)
Net increase (decrease) from capital share transactions		3,123,118			(29,113,855	)
Net increase in net assets		3,371,799			199,435,451
Net assets:
Beginning of period		616,964,797			417,529,346
End of period	$	620,336,596		$	616,964,797
Accumulated net investment loss at end of period	$	(1,202,397	)	$	—
Capital share activity:
Shares sold
Investor Class		32,229,027			71,031,032
Advisor Class		21,223,025			15,143,129
A-Class		1,826,118			2,796,536
C-Class		944,520			2,450,071
Shares redeemed
Investor Class		(36,360,203	)		(74,294,680	)
Advisor Class		(17,360,601	)		(16,008,249	)
A-Class		(1,724,605	)		(1,964,731	)
C-Class		(1,090,483	)		(2,253,969	)
Total capital share activity		(313,202	)		(3,100,861	)

44    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

    NASDAQ-100^® FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.83			$ 8.15			$11.81			$11.78			$11.34			$ 9.94
Income (loss) from investment operations:
Net investment lossb		(.02	)		(.07	)		(.06	)		(.06	)		(.06	)		(.05	)
Net gain (loss) on securities (realized and unrealized)		.24			4.75			(3.60	)		.09			.50			1.49
Total from investment operations		.22			4.68			(3.66	)		.03			.44			1.44
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.04	)
Total distributions		—			—			—			—			—			(.04	)
Net asset value, end of period		$13.05			$12.83			$ 8.15			$11.81			$11.78			$11.34
Total Returnc		1.71%			57.42%			(30.99%	)		0.25%			3.88%			14.45%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$527,617			$571,761			$389,944			$617,923			$635,744			$893,295
Ratios to average net assets:
Net investment loss		(0.38%	)		(0.63%	)		(0.59%	)		(0.50%	)		(0.52%	)		(0.49%	)
Total expenses		1.30%			1.30%			1.30%			1.28%			1.22%			1.20%
Portfolio turnover rate		18%			34%			55%			57%			71%			122%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.09			$ 7.72			$11.23			$11.26			$10.90			$ 9.60
Income (loss) from investment operations:
Net investment lossb		(.04	)		(.12	)		(.11	)		(.12	)		(.11	)		(.10	)
Net gain (loss) on securities (realized and unrealized)		.21			4.49			(3.40	)		.09			.47			1.44
Total from investment operations		.17			4.37			(3.51	)		(.03	)		.36			1.34
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.04	)
Total distributions		—			—			—			—			—			(.04	)
Net asset value, end of period		$12.26			$12.09			$ 7.72			$11.23			$11.26			$10.90
Total Returnc		1.41%			56.61%			(31.26%	)		(0.27%	)		3.30%			13.92%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$65,456			$17,859			$18,078			$15,184			$9,349			$27,832
Ratios to average net assets:
Net investment loss		(0.68%	)		(1.13%	)		(1.11%	)		(0.99%	)		(1.07%	)		(1.00%	)
Total expenses		1.80%			1.80%			1.79%			1.78%			1.73%			1.70%
Portfolio turnover rate		18%			34%			55%			57%			71%			122%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    45

  NASDAQ-100^® FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.27			$ 7.82			$11.35			$11.36			$10.96			$ 9.63
Income (loss) from investment operations:
Net investment lossb		(.04	)		(.09	)		(.08	)		(.09	)		(.08	)		(.08	)
Net gain (loss) on securities (realized and unrealized)		.22			4.54			(3.45	)		.08			.48			1.45
Total from investment operations		.18			4.45			(3.53	)		(.01	)		.40			1.37
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.04	)
Total distributions		—			—			—			—			—			(.04	)
Net asset value, end of period		$12.45			$12.27			$ 7.82			$11.35			$11.36			$10.96
Total Returnc		1.47%			56.91%			(31.10%	)		(0.09%	)		3.65%			14.18%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,626			$15,128			$3,140			$6,044			$3,686			$2,491
Ratios to average net assets:
Net investment loss		(0.69%	)		(0.86%	)		(0.82%	)		(0.76%	)		(0.73%	)		(0.78%	)
Total expenses		1.55%			1.55%			1.55%			1.54%			1.46%			1.46%
Portfolio turnover rate		18%			34%			55%			57%			71%			122%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$11.67			$ 7.49			$10.95			$11.02			$10.73			$ 9.50
Income (loss) from investment operations:
Net investment lossb		(.08	)		(.16	)		(.15	)		(.18	)		(.16	)		(.16	)
Net gain (loss) on securities (realized and unrealized)		.22			4.34			(3.31	)		.11			.45			1.43
Total from investment operations		.14			4.18			(3.46	)		(.07	)		.29			1.27
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.04	)
Total distributions		—			—			—			—			—			(.04	)
Net asset value, end of period		$11.81			$11.67			$ 7.49			$10.95			$11.02			$10.73
Total Returnc		1.20%			(55.81%	)		(31.60%	)		(0.64%	)		2.70%			13.33%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,638			$12,216			$6,368			$10,343			$10,032			$18,707
Ratios to average net assets:
Net investment loss		(1.39%	)		(1.63%	)		(1.59%	)		(1.50%	)		(1.55%	)		(1.52%	)
Total expenses		2.30%			2.30%			2.30%			2.28%			2.22%			2.21%
Portfolio turnover rate		18%			34%			55%			57%			71%			122%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment loss was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

46    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100 Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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 derivative investments such as equity index swap agreements and futures contracts.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    47

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INVERSE NASDAQ-100^® STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 94.8%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		$6,004,704	$	6,004,704
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		5,998,019		5,998,019
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		5,402,657		5,402,657
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		2,478,520		2,478,520
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		619,630		619,630
Total Repurchase Agreements
(Cost $20,503,530)				20,503,530
Total Investments – 94.8%
(Cost $20,503,530)			$	20,503,530
Cash & Other Assets,
Less Liabilities – 5.2%				1,115,656
Total Net Assets – 100.0%			$	21,619,186

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS SOLD SHORT†
December 2010 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of
Contracts $1,757,140)		44	$	889
		UNITS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2010 NASDAQ-100 Index Swap, Terminating 10/29/103
(Notional Market
Value $16,785,023)		8,401	$	92,721
Morgan Stanley Capital Services, Inc. October 2010 NASDAQ-100 Index Swap, Terminating 10/26/103 (Notional Market
Value $2,295,385)		1,149		14,875
Goldman Sachs International October 2010 NASDAQ-100 Index Swap, Terminating 10/27/103
(Notional Market Value $759,513)		380		4,936
(Total Notional Market
Value $19,839,921)			$	112,532

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.

48    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	20,503,530
Total investments		20,503,530
Segregated cash with broker		381,794
Unrealized appreciation on swap agreements		112,532
Receivable for swap settlement		10,498
Receivables:
Fund shares sold		676,365
Interest		110
Total assets		21,684,829
Liabilities:
Payable for:
Variation margin		4,085
Fund shares redeemed		9,140
Management fees		19,278
Custodian fees		707
Transfer agent/maintenance fees		5,355
Distribution and service fees		2,307
Portfolio accounting fees		2,142
Licensing fees		6,273
Other		16,356
Total liabilities		65,643
Net assets	$	21,619,186
Net assets consist of:
Paid in capital		110,113,469
Accumulated net investment loss		(215,762	)
Accumulated net realized loss on sale of investments		(88,391,942	)
Net unrealized appreciation in value of investments		113,421
Net assets		21,619,186
Investor Class:
Net assets	$	17,935,174
Capital shares outstanding		1,258,635
Net asset value per share		$14.25
Advisor Class:
Net assets	$	175,609
Capital shares outstanding		12,813
Net asset value per share		$13.71
A-Class:
Net assets	$	1,429,448
Capital shares outstanding		102,401
Net asset value per share		$13.96
Maximum offering price per share*		$14.66
C-Class:
Net assets	$	2,078,955
Capital shares outstanding		162,180
Net asset value per share		$12.82
Repurchase agreement, at cost	$	20,503,530
Total cost	$	20,503,530

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	27,466
Total investment income		27,466
Expenses:
Management fees		140,659
Transfer agent and administrative fees		39,072
Distribution and Service Fees:
Advisor Class		2,417
A-Class		1,610
C-Class		10,043
Portfolio accounting fees		15,629
Trustees’ fees**		1,046
Miscellaneous		32,752
Total expenses		243,228
Net investment loss		(215,762	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Equity index swaps		(3,129,836	)
Futures contracts		(428,380	)
Net realized loss		(3,558,216	)
Net unrealized appreciation (depreciation)
during the period on:
Equity index swaps		1,501,402
Futures contracts		1,026
Net unrealized appreciation		1,502,428
Net loss		(2,055,788	)
Net decrease in net assets resulting
from operations	$	(2,271,550	)

* Net asset value adjusted for the maximum sales charge of 4.75% of
offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the
meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    49

  INVERSE NASDAQ-100^® STRATEGY FUND  

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(215,762	)	$	(444,051	)
Net realized loss during the period on investments		(3,558,216	)		(20,372,903	)
Net unrealized appreciation during the period on investments		1,502,428			1,493,832
Net decrease in net assets resulting from operations		(2,271,550	)		(19,323,122	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		126,277,383			263,519,478
Advisor Class		15,280,405			13,001,544
A-Class		3,737,460			8,874,805
C-Class		5,035,355			9,150,986
Cost of shares redeemed
Investor Class		(127,557,175	)		(259,836,615	)
Advisor Class		(15,836,721	)		(11,961,791	)
A-Class		(3,312,740	)		(9,179,789	)
C-Class		(4,685,832	)		(8,808,360	)
Net increase (decrease) from capital share transactions		(1,061,865	)		4,760,258
Net decrease in net assets		(3,333,415	)		(14,562,864	)
Net assets:
Beginning of period		24,952,601			39,515,465
End of period	$	21,619,186		$	24,952,601
Accumulated net investment loss at end of period	$	(215,762	)	$	—
Capital share activity:
Shares sold
Investor Class		8,196,068			14,461,941
Advisor Class		1,024,573			732,358
A-Class		248,870			465,562
C-Class		363,674			536,740
Shares redeemed
Investor Class		(8,340,253	)		(14,401,266	)
Advisor Class		(1,074,777	)		(688,875	)
A-Class		(216,943	)		(488,378	)
C-Class		(337,931	)		(534,150	)
Total capital share activity		(136,719	)		83,932

50    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

1

  INVERSE NASDAQ-100^® STRATEGY FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$15.07			$25.09			$21.27			$21.67			$21.80			$24.55
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.25	)		(.06	)		.59			(.11	)		(.11	)
Net gain (loss) on securities (realized and unrealized)		(.72	)		(9.77	)		4.25			(.30	)		.54			(2.31	)
Total from investment operations		(.82	)		(10.02	)		4.19			.29			.43			(2.42	)
Less distributions:
Distributions from net investment income		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Total distributions		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Net asset value, end of period		$14.25			$15.07			$25.09			$21.27			$21.67			$21.80
Total Returnc		(5.44%	)		(39.94%	)		19.48%			1.92%			2.01%			(9.85%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$17,935			$21,137			$33,672			$59,819			$104,617			$143,742
Ratios to average net assets:
Net investment income (loss)		(1.29%	)		(1.35%	)		(0.26%	)		2.98%			3.79%			(0.45%	)
Combined net investment incomed		—			—			—			—			—			2.22%
Total expensese		1.47%			1.47%			1.46%			1.47%			1.40%			1.39%
Net expensese		1.47%			1.47%			1.46%			1.47%			1.40%			1.38%
Portfolio turnover rate		—			—			—			—			—			—
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.54			$24.37			$20.77			$21.28			$21.51			$24.34
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.32	)		(.06	)		.51			(.22	)		(.22	)
Net gain (loss) on securities (realized and unrealized)		(.69	)		(9.51	)		4.03			(.33	)		.55			(2.28	)
Total from investment operations		(.83	)		(9.83	)		3.97			.18			.33			(2.50	)
Less distributions:
Distributions from net investment income		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Total distributions		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Net asset value, end of period		$13.71			$14.54			$24.37			$20.77			$21.28			$21.51
Total Returnc		(5.71%	)		(40.34%	)		18.88%			1.43%			1.56%			(10.27%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$176			$916			$476			$3,744			$11,436			$10,390
Ratios to average net assets:
Net investment income (loss)		(1.79%	)		(1.84%	)		(0.29%	)		2.56%			3.29%			(0.96%	)
Combined net investment incomed		—			—			—			—			—			1.71%
Total expensese		1.96%			1.97%			1.97%			1.98%			1.90%			1.89%
Net expensese		1.96%			1.97%			1.97%			1.98%			1.90%			1.89%
Portfolio turnover rate		—			—			—			—			—			—

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    51

2

  INVERSE NASDAQ-100^® STRATEGY FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.78			$24.67			$20.97			$21.43			$21.61			$24.39
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.26	)		(.22	)		.52			(.16	)		(.16	)
Net gain (loss) on securities (realized and unrealized)		(.71	)		(9.63	)		4.29			(.29	)		.54			(2.29	)
Total from investment operations		(.82	)		(9.89	)		4.07			.23			.38			(2.45	)
Less distributions:
Distributions from net investment income		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Total distributions		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Net asset value, end of period		$13.96			$14.78			$24.67			$20.97			$21.43			$21.61
Total Returnc		(5.55%	)		(40.09%	)		19.18%			1.65%			1.79%			(10.04%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,429			$1,041			$2,301			$1,784			$4,086			$2,108
Ratios to average net assets:
Net investment income (loss)		(1.54%	)		(1.37%	)		(0.92%	)		2.61%			3.55%			(0.70%	)
Combined net investment incomed		—			—			—			—			—			1.97%
Total expensese		1.71%			1.71%			1.71%			1.72%			1.64%			1.63%
Net expensese		1.71%			1.71%			1.71%			1.72%			1.64%			1.63%
Portfolio turnover rate		—			—			—			—			—			—
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$13.62			$22.91			$19.63			$20.27			$20.63			$23.48
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.39	)		(.25	)		.38			(.32	)		(.32	)
Net gain (loss) on securities (realized and unrealized)		(.64	)		(8.90	)		3.90			(.33	)		.52			(2.20	)
Total from investment operations		(.80	)		(9.29	)		3.65			.05			.20			(2.52	)
Less distributions:
Distributions from net investment income		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Total distributions		—			—			(.37	)		(.69	)		(.56	)		(.33	)
Net asset value, end of period		$12.82			$13.62			$22.91			$19.63			$20.27			$20.63
Total Returnc		(5.87%	)		(40.55%	)		18.35%			0.85%			1.00%			(10.73%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,079			$1,858			$3,066			$7,633			$17,834			$13,527
Ratios to average net assets:
Net investment income (loss)		(2.29%	)		(2.33%	)		(1.19%	)		2.05%			2.79%			(1.46%	)
Combined net investment incomed		—			—			—			—			—			1.21%
Total expensese		2.47%			2.47%			2.47%			2.48%			2.40%			2.40%
Net expensese		2.47%			2.47%			2.47%			2.48%			2.40%			2.39%
Portfolio turnover rate		—			—			—			—			—			—

52    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

  INVERSE NASDAQ-100^® STRATEGY FUND  

FINANCIAL HIGHLIGHTS (concluded)

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
Prior to April 1, 2007, the Inverse NASDAQ-100® Strategy Fund operated under a Master-Feeder Structure.

d	Ratios represent combined net investment income of the former Master Portfolio and the Fund. Ratios shown under the caption “Combined Net Investment Income (Loss)” for the year ended March 31, 2006 and preceding periods did not reflect the net investment income of the former Master Portfolio.
e	Expense ratios to average net assets include expenses of the corresponding former Master Portfolio for the year ended March 31, 2007 and preceding periods.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    53

4

FUND PROFILE (Unaudited)

September 30, 2010

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for mid-cap securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
F5 Networks, Inc.	0.5	%
Newfield Exploration Co.	0.4	%
Edwards Lifesciences Corp.	0.4	%
Joy Global, Inc.	0.4	%
Lubrizol Corp.	0.4	%
New York Community Bancorp, Inc.	0.4	%
NetFlix, Inc.	0.4	%
Vertex Pharmaceuticals, Inc.	0.4	%
Dollar Tree, Inc.	0.4	%
BorgWarner, Inc.	0.3	%
Top Ten Total	4.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

54    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 57.4%
FINANCIALS - 11.5%
New York Community Bancorp, Inc.		6,290	$	102,212
Macerich Co.		1,880		80,746
Federal Realty Investment Trust		890		72,677
SL Green Realty Corp.		1,130		71,563
Everest Re Group Ltd.		810		70,041
Nationwide Health Properties, Inc.		1,790		69,219
AMB Property Corp.		2,430		64,322
Rayonier, Inc.		1,160		58,139
Affiliated Managers Group, Inc.*		740		57,727
MSCI, Inc. — Class A*		1,700		56,457
Alexandria Real Estate Equities, Inc.		790		55,300
UDR, Inc.		2,590		54,701
Realty Income Corp.		1,590		53,615
Jones Lang LaSalle, Inc.		620		53,487
Liberty Property Trust		1,640		52,316
Old Republic International Corp.		3,740		51,799
Fidelity National Financial, Inc. — Class A		3,290		51,686
Reinsurance Group of America, Inc. — Class A		1,057		51,043
Eaton Vance Corp.		1,710		49,658
WR Berkley Corp.		1,819		49,240
Essex Property Trust, Inc.		439		48,044
Cullen		880		47,406
Transatlantic Holdings, Inc.		920		46,754
Regency Centers Corp.		1,180		46,575
Camden Property Trust		970		46,531
HCC Insurance Holdings, Inc.		1,660		43,309
Senior Housing Properties Trust		1,840		43,240
Duke Realty Corp.		3,640		42,188
SEI Investments Co.		2,040		41,494
Jefferies Group, Inc.		1,790		40,615
Commerce Bancshares, Inc.		1,070		40,221
Arthur J Gallagher & Co.		1,521		40,109
Hospitality Properties Trust		1,780		39,747
BRE Properties, Inc.		930		38,595
Mack-Cali Realty Corp.		1,150		37,617
Raymond James Financial, Inc.		1,440		36,475
Weingarten Realty Investors		1,670		36,439
City National Corp.		670		35,557
First Niagara Financial Group, Inc.		3,020		35,183
American Financial Group, Inc.		1,140		34,861
Brown & Brown, Inc.		1,680		33,919
Waddell & Reed Financial, Inc. — Class A		1,230		33,653
Highwoods Properties, Inc.		1,030		33,444
Associated Banc-Corp		2,500		32,975
Corporate Office Properties Trust		860		32,087
Bank of Hawaii Corp.		700		31,444
Omega Healthcare Investors, Inc.		1,370		30,757
Hanover Insurance Group, Inc.		650		30,550
Valley National Bancorp		2,330		30,057

			MARKET
	SHARES		VALUE
TCF Financial Corp.		1,830	$	29,628
Greenhill & Company, Inc.		370		29,348
FirstMerit Corp.		1,570		28,762
Apollo Investment Corp.		2,810		28,746
Synovus Financial Corp.		11,350		27,921
Protective Life Corp.		1,240		26,982
Fulton Financial Corp.		2,870		26,002
StanCorp Financial Group, Inc.		680		25,840
SVB Financial Group*		608		25,731
Washington Federal, Inc.		1,630		24,874
Westamerica Bancorporation		420		22,886
First American Financial Corp.		1,510		22,559
Prosperity Bancshares, Inc.		670		21,755
Mercury General Corp.		510		20,844
Potlatch Corp.		580		19,720
NewAlliance Bancshares, Inc.		1,520		19,182
Trustmark Corp.		820		17,827
Unitrin, Inc.		720		17,561
Webster Financial Corp.		950		16,682
Astoria Financial Corp.		1,190		16,220
BancorpSouth, Inc.		1,060		15,031
Cathay General Bancorp		1,130		13,436
International Bancshares Corp.		770		13,005
Wilmington Trust Corp.		1,320		11,854
Cousins Properties, Inc.		1,491		10,646
Equity One, Inc.		505		8,524
PacWest Bancorp		446		8,501
Total Financials				2,885,861
INFORMATION TECHNOLOGY - 9.1%
F5 Networks, Inc.*		1,160		120,420
Cree, Inc.*		1,560		84,692
Rovi Corp.*		1,490		75,111
Lam Research Corp.*		1,790		74,912
Equinix, Inc.*		660		67,551
Hewitt Associates, Inc. — Class A*		1,330		67,072
Trimble Navigation Ltd.*		1,720		60,269
Avnet, Inc.*		2,190		59,152
ANSYS, Inc.*		1,310		55,347
Factset Research Systems, Inc.		670		54,357
Skyworks Solutions, Inc.*		2,580		53,354
Synopsys, Inc.*		2,149		53,231
Atmel Corp.*		6,670		53,093
Informatica Corp.*		1,341		51,508
Alliance Data Systems Corp.*		760		49,598
Global Payments, Inc.		1,150		49,324
MICROS Systems, Inc.*		1,160		49,103
Arrow Electronics, Inc.*		1,700		45,441
Lender Processing Services, Inc.		1,350		44,860
Solera Holdings, Inc.		1,010		44,602
TIBCO Software, Inc.*		2,370		42,044
Broadridge Financial Solutions, Inc.		1,830		41,852
AOL, Inc.*		1,540		38,115
Ingram Micro, Inc. — Class A*		2,260		38,104
Rackspace Hosting, Inc.*		1,390		36,112

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    55

2

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Itron, Inc.*		580	$	35,513
Polycom, Inc.*		1,230		33,554
Parametric Technology Corp.*		1,670		32,632
CommScope, Inc.*		1,370		32,524
ADTRAN, Inc.		910		32,123
NCR Corp.*		2,320		31,622
Jack Henry & Associates, Inc.		1,240		31,620
Diebold, Inc.		950		29,535
Gartner, Inc.*		1,000		29,440
Cadence Design Systems, Inc.*		3,850		29,375
CoreLogic, Inc.		1,500		28,740
National Instruments Corp.		850		27,761
Zebra Technologies Corp. — Class A*		820		27,585
Tech Data Corp.*		670		27,001
NeuStar, Inc. — Class A*		1,080		26,849
Vishay Intertechnology, Inc.*		2,700		26,136
RF Micro Devices, Inc.*		3,940		24,192
Silicon Laboratories, Inc.*		640		23,456
DST Systems, Inc.		520		23,317
Plantronics, Inc.		690		23,308
Quest Software, Inc.*		890		21,885
International Rectifier Corp.*		1,020		21,512
Ciena Corp.*		1,350		21,019
Intersil Corp. — Class A		1,790		20,925
Digital River, Inc.*		570		19,403
Convergys Corp.*		1,790		18,705
Acxiom Corp.*		1,160		18,398
Semtech Corp.*		900		18,171
ADC Telecommunications, Inc.*		1,400		17,738
Fairchild Semiconductor International, Inc. — Class A*		1,800		16,920
Mentor Graphics Corp.*		1,580		16,701
ValueClick, Inc.*		1,180		15,434
Fair Isaac Corp.		600		14,796
Integrated Device Technology, Inc.*		2,290		13,396
Mantech International Corp. — Class A*		320		12,672
SRA International, Inc. — Class A*		620		12,226
Advent Software, Inc.*		229		11,952
ACI Worldwide, Inc.*		480		10,747
Total Information Technology				2,288,107
INDUSTRIALS - 8.7%
Joy Global, Inc.		1,490		104,777
Bucyrus International, Inc. — Class A		1,170		81,140
AMETEK, Inc.		1,540		73,566
Manpower, Inc.		1,190		62,118
KBR, Inc.		2,260		55,686
Kansas City Southern*		1,480		55,367
AGCO Corp.*		1,340		52,273

			MARKET
	SHARES		VALUE
Donaldson Company, Inc.		1,100	$	51,843
Pentair, Inc.		1,430		48,091
URS Corp.*		1,210		45,956
SPX Corp.		720		45,562
BE Aerospace, Inc.*		1,480		44,859
Timken Co.		1,160		44,498
Waste Connections, Inc.*		1,120		44,419
J.B. Hunt Transport Services, Inc.		1,280		44,416
Hubbell, Inc. — Class B		870		44,152
IDEX Corp.		1,180		41,902
Shaw Group, Inc.*		1,220		40,943
Gardner Denver, Inc.		760		40,797
Aecom Technology Corp.*		1,680		40,757
Corrections Corporation of America*		1,600		39,488
Kennametal, Inc.		1,180		36,497
Alliant Techsystems, Inc.*		480		36,192
Nordson Corp.		490		36,108
Oshkosh Corp.*		1,310		36,025
Terex Corp.*		1,570		35,984
Lincoln Electric Holdings, Inc.		610		35,270
MSC Industrial Direct Co. — Class A		640		34,586
Wabtec Corp.		690		32,975
Regal-Beloit Corp.		560		32,866
Copart, Inc.*		990		32,640
Towers Watson & Co. — Class A		650		31,967
Kirby Corp.*		780		31,247
Thomas & Betts Corp.*		760		31,175
Harsco Corp.		1,160		28,513
Acuity Brands, Inc.		630		27,871
Landstar System, Inc.		720		27,806
Graco, Inc.		870		27,605
Woodward Governor Co.		850		27,557
Lennox International, Inc.		660		27,515
Baldor Electric Co.		680		27,472
Alaska Air Group, Inc.*		520		26,536
Carlisle Companies, Inc.		876		26,236
Trinity Industries, Inc.		1,150		25,611
Crane Co.		670		25,420
Con-way, Inc.		790		24,482
FTI Consulting, Inc.*		680		23,589
Valmont Industries, Inc.		310		22,444
Clean Harbors, Inc.*		330		22,357
Alexander & Baldwin, Inc.		600		20,904
GATX Corp.		670		19,644
JetBlue Airways Corp.*		2,910		19,468
HNI Corp.		650		18,694
Herman Miller, Inc.		820		16,138
Rollins, Inc.		680		15,898
Corporate Executive Board Co.		500		15,780
Brink’s Co.		680		15,640
AirTran Holdings, Inc.*		1,960		14,406
Deluxe Corp.		740		14,156

56    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

3

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Werner Enterprises, Inc.		640	$	13,114
United Rentals, Inc.*		870		12,911
Mine Safety Appliances Co.		450		12,195
Granite Construction, Inc.		490		11,143
Korn*		670		11,082
Navigant Consulting, Inc.*		720		8,374
Total Industrials				2,176,703
CONSUMER DISCRETIONARY - 8.2%
NetFlix, Inc.*		630		102,161
Dollar Tree, Inc.*		1,830		89,231
BorgWarner, Inc.*		1,650		86,823
Chipotle Mexican Grill, Inc. — Class A*		450		77,400
Advance Auto Parts, Inc.		1,220		71,590
PetSmart, Inc.		1,710		59,850
Phillips-Van Heusen Corp.		960		57,754
NVR, Inc.*		80		51,802
Williams-Sonoma, Inc.		1,560		49,452
Mohawk Industries, Inc.*		810		43,173
LKQ Corp.*		2,070		43,056
American Eagle Outfitters, Inc.		2,830		42,337
Tractor Supply Co.		1,050		41,643
Tupperware Brands Corp.		910		41,642
Fossil, Inc.*		770		41,418
Panera Bread Co. — Class A*		450		39,875
Toll Brothers, Inc.*		2,090		39,752
Gentex Corp.		2,020		39,410
Guess?, Inc.		920		37,380
Sotheby’s		970		35,715
Hanesbrands, Inc.*		1,380		35,687
Dick’s Sporting Goods, Inc.*		1,270		35,611
Strayer Education, Inc.		200		34,900
DreamWorks Animation SKG, Inc. — Class A*		1,081		34,495
Warnaco Group, Inc.*		640		32,723
Foot Locker, Inc.		2,250		32,692
Service Corporation International		3,760		32,411
Burger King Holdings, Inc.		1,340		31,999
WMS Industries, Inc.*		840		31,979
Aeropostale, Inc.*		1,340		31,155
J Crew Group, Inc.*		920		30,930
ITT Educational Services, Inc.*		400		28,108
Brinker International, Inc.		1,470		27,724
Bally Technologies, Inc.*		780		27,261
Chico’s FAS, Inc.		2,590		27,247
Lamar Advertising Co. — Class A*		829		26,379
John Wiley & Sons, Inc. — Class A		628		25,660
Life Time Fitness, Inc.*		610		24,077
Dress Barn, Inc.*		1,000		23,750
Under Armour, Inc. — Class A*		510		22,970
Cheesecake Factory, Inc.*		860		22,764
Rent-A-Center, Inc. — Class A		950		21,261
Aaron’s, Inc.		1,143		21,088
Wendy’s — Class A		4,650		21,065

			MARKET
	SHARES		VALUE
Career Education Corp.*		950	$	20,396
Saks, Inc.*		2,330		20,038
Thor Industries, Inc.		570		19,038
AnnTaylor Stores Corp.*		850		17,204
Regis Corp.		830		15,878
MDC Holdings, Inc.		540		15,676
Matthews International Corp. — Class A		430		15,205
Collective Brands, Inc.*		930		15,010
99 Cents Only Stores*		680		12,838
Bob Evans Farms, Inc.		440		12,351
International Speedway Corp. — Class A		490		11,956
KB Home		1,040		11,783
Timberland Co. — Class A*		580		11,490
Ryland Group, Inc.		637		11,415
Scholastic Corp.		400		11,128
American Greetings Corp. — Class A		580		10,782
Barnes & Noble, Inc.		560		9,078
Corinthian Colleges, Inc.*		1,270		8,915
Scientific Games Corp. — Class A*		910		8,827
Harte-Hanks, Inc.		560		6,535
Boyd Gaming Corp.*		810		5,873
Coldwater Creek, Inc.*		870		4,585
Total Consumer Discretionary				2,051,401
HEALTH CARE - 6.5%
Edwards Lifesciences Corp.*		1,640		109,962
Vertex Pharmaceuticals, Inc.*		2,930		101,290
Henry Schein, Inc.*		1,320		77,326
Perrigo Co.		1,190		76,422
ResMed, Inc.*		2,190		71,854
Hologic, Inc.*		3,750		60,037
Mettler-Toledo International, Inc.*		480		59,731
Endo Pharmaceuticals Holdings, Inc.*		1,670		55,511
Universal Health Services, Inc. — Class B		1,400		54,404
IDEXX Laboratories, Inc.*		830		51,228
Beckman Coulter, Inc.		1,000		48,790
Covance, Inc.*		940		43,983
Allscripts Healthcare Solutions, Inc.*		2,370		43,774
Pharmaceutical Product Development, Inc.		1,720		42,639
Community Health Systems, Inc.*		1,360		42,119
Omnicare, Inc.		1,710		40,835
United Therapeutics Corp.*		720		40,327
Health Net, Inc.*		1,410		38,338
Mednax, Inc.*		690		36,777
Lincare Holdings, Inc.		1,420		35,628
Gen-Probe, Inc.*		700		33,922
Techne Corp.		540		33,334
Hill-Rom Holdings, Inc.		920		33,019

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    57

4

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Teleflex, Inc.		580	$	32,932
Kinetic Concepts, Inc.*		900		32,922
Charles River Laboratories International, Inc.*		959		31,791
Thoratec Corp.*		840		31,063
STERIS Corp.		860		28,569
Psychiatric Solutions, Inc.*		830		27,846
Health Management Associates, Inc. — Class A*		3,620		27,729
LifePoint Hospitals, Inc.*		780		27,347
Owens & Minor, Inc.		920		26,183
VCA Antech, Inc.*		1,240		26,152
Medicis Pharmaceutical Corp. — Class A		870		25,795
Bio-Rad Laboratories, Inc. — Class A*		280		25,343
Masimo Corp.		850		23,214
Immucor, Inc.*		1,010		20,028
WellCare Health Plans, Inc.*		610		17,666
Kindred Healthcare, Inc.*		570		7,421
Total Health Care				1,643,251
MATERIALS - 3.8%
Lubrizol Corp.		980		103,851
Albemarle Corp.		1,320		61,789
Ashland, Inc.		1,140		55,598
Martin Marietta Materials, Inc.		660		50,800
Sonoco Products Co.		1,450		48,488
Valspar Corp.		1,420		45,227
Reliance Steel & Aluminum Co.		1,070		44,437
Aptargroup, Inc.		970		44,300
Steel Dynamics, Inc.		3,130		44,164
Cytec Industries, Inc.		710		40,030
RPM International, Inc.		1,880		37,450
Packaging Corporation of America		1,500		34,755
Scotts Miracle-Gro Co. — Class A		670		34,659
Cabot Corp.		940		30,616
Temple-Inland, Inc.		1,560		29,110
Rock-Tenn Co. — Class A		560		27,894
Greif, Inc. — Class A		450		26,478
Silgan Holdings, Inc.		780		24,726
Commercial Metals Co.		1,650		23,908
Olin Corp.		1,140		22,982
Sensient Technologies Corp.		720		21,953
Carpenter Technology Corp.		640		21,574
Intrepid Potash, Inc.*		640		16,685
NewMarket Corp.		140		15,915
Minerals Technologies, Inc.		269		15,849
Louisiana-Pacific Corp.*		1,870		14,156
Worthington Industries, Inc.		830		12,475
Total Materials				949,869
UTILITIES - 3.5% National Fuel Gas Co.		1,180		61,136
NSTAR		1,500		59,025
Alliant Energy Corp.		1,600		58,160

			MARKET
	SHARES		VALUE
OGE Energy Corp.		1,410	$	56,217
MDU Resources Group, Inc.		2,720		54,264
Energen Corp.		1,040		47,549
UGI Corp.		1,590		45,490
DPL, Inc.		1,720		44,944
N.V. Energy, Inc.		3,400		44,710
Questar Corp.		2,540		44,526
AGL Resources, Inc.		1,130		43,347
Aqua America, Inc.		1,980		40,392
Westar Energy, Inc.		1,600		38,768
Atmos Energy Corp.		1,300		38,025
Great Plains Energy, Inc.		1,960		37,044
Vectren Corp.		1,180		30,527
Hawaiian Electric Industries, Inc.		1,350		30,429
WGL Holdings, Inc.		730		27,579
Cleco Corp.		880		26,065
IDACORP, Inc.		700		25,144
Black Hills Corp.		570		17,784
PNM Resources, Inc.		1,250		14,237
Dynegy, Inc. — Class A*		1,480		7,207
Total Utilities				892,569
ENERGY - 3.4%
Newfield Exploration Co.*		1,930		110,859
Cimarex Energy Co.		1,219		80,673
Pride International, Inc.*		2,540		74,752
Arch Coal, Inc.		2,350		62,769
Plains Exploration & Production Co.*		2,020		53,873
Forest Oil Corp.*		1,640		48,708
Southern Union Co.		1,800		43,308
Oceaneering International, Inc.*		780		42,011
Patterson-UTI Energy, Inc.		2,230		38,088
Mariner Energy, Inc.*		1,490		36,103
Tidewater, Inc.		740		33,159
Superior Energy Services, Inc.*		1,140		30,427
Atwood Oceanics, Inc.*		810		24,665
Bill Barrett Corp.*		660		23,760
Quicksilver Resources, Inc.*		1,700		21,420
Unit Corp.*		570		21,255
Exterran Holdings, Inc.*		910		20,666
Frontier Oil Corp.		1,530		20,502
Helix Energy Solutions Group, Inc.*		1,520		16,933
Comstock Resources, Inc.*		680		15,293
Overseas Shipholding Group, Inc.		390		13,385
Patriot Coal Corp.*		1,160		13,236
Total Energy				845,845
CONSUMER STAPLES - 2.3%
Energizer Holdings, Inc.*		1,010		67,902
Church & Dwight Company, Inc.		1,030		66,888
Green Mountain Coffee Roasters, Inc.*		1,660		51,775
NBTY, Inc.*		920		50,582
Alberto-Culver Co.		1,240		46,686

58    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

5

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Ralcorp Holdings, Inc.*		790	$	46,199
Hansen Natural Corp.*		990		46,154
Corn Products International, Inc.		1,090		40,875
Smithfield Foods, Inc.*		2,400		40,392
BJ’s Wholesale Club, Inc.*		790		32,785
Flowers Foods, Inc.		1,100		27,324
Ruddick Corp.		610		21,155
Universal Corp.		350		14,032
Lancaster Colony Corp.		280		13,300
Tootsie Roll Industries, Inc.		350		8,708
Total Consumer Staples				574,757
TELECOMMUNICATION SERVICES - 0.4%
Telephone & Data Systems, Inc.		1,340		43,952
tw telecom inc — Class A*		2,190		40,668
Syniverse Holdings, Inc.*		1,000		22,670
Cincinnati Bell, Inc.*		2,910		7,770
Total Telecommunication Services				115,060
Total Common Stocks (Cost $10,707,133)				14,423,423
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc.* $12.21, 03/02/12		510		25
Total Warrant (Cost $—)				25

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 33.4%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20%
due 10/01/10		$2,749,322	$	2,749,322
HSBC Group issued 09/30/10 at 0.20%
due 10/01/10		2,746,261		2,746,261
Credit Suisse Group issued 09/30/10 at 0.18%
due 10/01/102		1,466,639		1,466,639
Morgan Stanley issued 09/30/10 at 0.19%
due 10/01/10		1,134,819		1,134,819
Deutsche Bank issued 09/30/10 at 0.20%
due 10/01/10		283,705		283,705
Total Repurchase Agreements (Cost $8,380,746)				8,380,746
Total Investments – 90.8% (Cost $19,087,879)			$	22,804,194
Cash & Other Assets, Less Liabilities – 9.2%				2,302,945
Total Net Assets – 100.0%			$	25,107,139
			Unrealized
		CONTRACTS	GAIN
FUTURES CONTRACTS PURCHASED†
December 2010 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of
Contracts $15,032,480)		188	$	412,302
		UNITS
EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2010 S&P MidCap 400 Index Swap, Terminating 10/27/103
(Notional Market Value
$6,175,070)		7,699	$	61,154
Morgan Stanley Capital Services, Inc. October 2010 S&P MidCap 400 Index Swap, Terminating 10/26/103
(Notional Market Value
$386,313)		482		3,803
Credit Suisse Capital, LLC October 2010 S&P MidCap 400 Index Swap, Terminating 10/29/103
(Notional Market Value
$1,546,392)		1,928		2,360
(Total Notional Market Value
$8,107,775)			$	67,317

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    59

5

  MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	14,423,448
Repurchase agreement, at value		8,380,746
Total investments		22,804,194
Segregated cash with broker		1,079,484
Unrealized appreciation on swap agreements		67,317
Receivable for swap settlement		2,843
Receivables:
Securities sold		34,733
Fund shares sold		1,565,148
Dividends		12,412
Interest		45
Total assets		25,566,176
Liabilities:
Payable for:
Variation margin		6,059
Securities purchased		39,681
Fund shares redeemed		372,592
Management fees		15,074
Custodian fees		553
Transfer agent/maintenance fees		4,187
Distribution and service fees		6,693
Portfolio accounting fees		1,675
Other		12,523
Total liabilities		459,037
Net assets	$	25,107,139
Net assets consist of:
Paid in capital		44,137,812
Accumulated net investment loss		(120,575	)
Accumulated net realized loss on sale
of investments		(23,106,032	)
Net unrealized appreciation in value of investments		4,195,934
Net assets		25,107,139
A-Class:
Net assets	$	766,911
Capital shares outstanding		28,122
Net asset value per share		$27.27
Maximum offering price per share*		$28.63
C-Class:
Net assets	$	4,091,452
Capital shares outstanding		162,071
Net asset value per share		$25.24
H-Class:
Net assets	$	20,248,776
Capital shares outstanding		742,970
Net asset value per share		$27.25
Investments, at cost	$	10,707,133
Repurchase agreement, at cost		8,380,746
Total cost	$	19,087,879

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	126,936
Interest		6,539
Total investment income		133,475
Expenses:
Management fees		127,347
Transfer agent and administrative fees		35,374
Distribution and Service Fees:
A-Class		1,157
C-Class		21,272
H-Class		28,899
Portfolio accounting fees		14,149
Trustees’ fees**		1,225
Miscellaneous		24,627
Total expenses		254,050
Net investment loss		(120,575	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(1,277,738	)
Equity index swaps		95,638
Futures contracts		(3,110,284	)
Net realized loss		(4,292,384	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		450,713
Equity index swaps		(1,090,350	)
Futures contracts		320,141
Net unrealized depreciation		(319,496	)
Net loss		(4,611,880	)
Net decrease in net assets resulting
from operations	$	(4,732,455	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

60    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(120,575	)	$	(160,250	)
Net realized gain (loss) during the period on investments		(4,292,384	)		3,461,477
Net unrealized appreciation (depreciation) during the period on investments		(319,496	)		5,812,914
Net increase (decrease) in net assets resulting from operations		(4,732,455	)		9,114,141
Distributions To Shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		309,720			4,303,723
C-Class		3,154,801			12,820,669
H-Class		127,257,525			180,310,582
Cost of shares redeemed
A-Class		(1,099,105	)		(4,338,121	)
C-Class		(2,999,607	)		(13,909,187	)
H-Class		(133,244,807	)		(166,937,942	)
Net increase (decrease) from capital share transactions		(6,621,473	)		12,249,724
Net increase (decrease) in net assets		(11,353,928	)		21,363,865
Net assets:
Beginning of period		36,461,067			15,097,202
End of period	$	25,107,139		$	36,461,067
Accumulated net investment loss at end of period	$	(120,575	)	$	—
Capital share activity:
Shares sold
A-Class		11,426			191,775
C-Class		122,683			710,630
H-Class		4,910,398			8,541,819
Shares redeemed
A-Class		(41,567	)		(214,540	)
C-Class		(123,462	)		(784,596	)
H-Class		(5,313,946	)		(8,225,083	)
Total capital share activity		(434,468	)		220,005

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    61

  MID-CAP 1.5x STRATEGY FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$26.89			$13.33			$32.39			$41.56			$40.14			$31.86
Income (loss) from investment operations:
Net investment income (loss) b		(.10	)		(.16	)		—	c		.23			.05			.01
Net gain (loss) on securities (realized and unrealized)		.48			13.72			(17.74	)		(7.46	)		2.74			8.65
Total from investment operations		.38			13.56			(17.74	)		(7.23	)		2.79			8.66
Less distributions:
Distributions from net investment income		—			—			—			(.26	)		—			—
Distributions from realized gains		—			—			(1.32	)		(1.68	)		(1.37	)		(.38	)
Total distributions		—			—			(1.32	)		(1.94	)		(1.37	)		(.38	)
Net asset value, end of period		$27.27			$26.89			$13.33			$32.39			$41.56			$40.14
Total Returnd		1.41%			101.73%			(54.70%	)		(18.29%	)		7.11%			27.27%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$767			$1,567			$1,080			$1,571			$2,806			$4,948
Ratios to average net assets:
Net investment income (loss)		(0.75%	)		(0.79%	)		0.01%			0.57%			0.13%			0.03%
Total expenses		1.68%			1.69%			1.68%			1.67%			1.67%			1.92%
Net expenses		1.68%			1.69%			1.68%			1.67%			1.67%			1.66%
Portfolio turnover rate		61%			219%			204%			226%			296%			528%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$24.98			$12.47			$30.73			$39.82			$38.81			$31.03
Income (loss) from investment operations:
Net investment lossb		(.17	)		(.27	)		(.17	)		(.08	)		(.23	)		(.25	)
Net gain (loss) on securities (realized and unrealized)		.43			12.78			(16.77	)		(7.07	)		2.61			8.41
Total from investment operations		.26			12.51			(16.94	)		(7.15	)		2.38			8.16
Less distributions:
Distributions from net investment income		—			—			—			(.26	)		—			—
Distributions from realized gains		—			—			(1.32	)		(1.68	)		(1.37	)		(.38	)
Total distributions		—			—			(1.32	)		(1.94	)		(1.37	)		(.38	)
Net asset value, end of period		$25.24			$24.98			$12.47			$30.73			$39.82			$38.81
Total Returnd		1.04%			100.32%			(55.06%	)		(18.90%	)		6.29%			26.38%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,091			$4,069			$2,954			$8,388			$17,112			$28,836
Ratios to average net assets:
Net investment loss		(1.42%	)		(1.43%	)		(0.72%	)		(0.20%	)		(0.62%	)		(0.72%	)
Total expenses		2.43%			2.44%			2.43%			2.42%			2.41%			2.66%
Net expenses		2.43%			2.44%			2.43%			2.42%			2.41%			2.40%
Portfolio turnover rate		61%			219%			204%			226%			296%			528%

62    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  MID-CAP 1.5x STRATEGY FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$26.89			$13.33			$32.40			$41.58			$40.17			$31.86
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.15	)		.01			.25			.06			—	c
Net gain (loss) on securities (realized and unrealized)		.46			13.71			(17.76	)		(7.49	)		2.72			8.69
Total from investment operations		.36			13.56			(17.75	)		(7.24	)		2.78			8.69
Less distributions:
Distributions from net investment income		—			—			—			(.26	)		—			—
Distributions from realized gains		—			—			(1.32	)		(1.68	)		(1.37	)		(.38	)
Total distributions		—			—			(1.32	)		(1.94	)		(1.37	)		(.38	)
Net asset value, end of period		$27.25			$26.89			$13.33			$32.40			$41.58			$40.17
Total Returnd		1.34%			101.73%			(54.71%	)		(18.31%	)		7.08%			27.36%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$20,249			$30,825			$11,063			$11,763			$24,918			$50,883
Ratios to average net assets:
Net investment income (loss)		(0.75%	)		(0.73%	)		0.06%			0.61%			0.16%			0.01%
Total expenses		1.68%			1.68%			1.68%			1.67%			1.67%			1.90%
Net expenses		1.68%			1.68%			1.68%			1.67%			1.67%			1.64%
Portfolio turnover rate		61%			219%			204%			226%			296%			528%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    63

FUND PROFILE (Unaudited)

September 30, 2010

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400 Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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 derivative investments such as equity index swap agreements.

64    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INVERSE MID-CAP STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 96.9%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		$853,689	$	853,689
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		852,739		852,739
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		705,129		705,129
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		352,371		352,371
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		88,093		88,093
Total Repurchase Agreements (Cost $2,852,021)				2,852,021
Total Investments – 96.9% (Cost $2,852,021)			$	2,852,021
Cash & Other Assets, Less Liabilities – 3.1%				91,020
Total Net Assets – 100.0%			$	2,943,041

			UNREALIZED
	UNITS		LOSS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International October 2010 S&P MidCap 400 Index Swap, Terminating 10/27/103 (Notional Market Value
$259,225)		323		$(2,561	)
Morgan Stanley Capital Services, Inc. October 2010 S&P MidCap 400 Index Swap, Terminating 10/26/103 (Notional Market Value
$345,144)		430		(3,417	)
Credit Suisse Capital, LLC October 2010 S&P MidCap 400 Index Swap, Terminating 10/29/103 (Notional Market Value
$2,344,761)		2,923		(3,578	)
(Total Notional Market Value $2,949,130)				$(9,556	)

††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    65

  INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	2,852,021
Total investments		2,852,021
Segregated cash with broker		107,416
Receivables:
Fund shares sold		10,763
Interest		15
Total assets		2,970,215
Liabilities:
Unrealized depreciation on swap agreements		9,556
Payable for:
Fund shares redeemed		10,104
Management fees		2,594
Custodian fees		95
Transfer agent/maintenance fees		721
Distribution and service fees		1,054
Portfolio accounting fees		288
Other		2,762
Total liabilities		27,174
Net assets	$	2,943,041
Net assets consist of:
Paid in capital		15,447,715
Accumulated net investment loss		(41,536	)
Accumulated net realized loss on sale of investments		(12,453,582	)
Net unrealized depreciation in value of investments		(9,556	)
Net assets		2,943,041
A-Class:
Net assets	$	418,536
Capital shares outstanding		16,249
Net asset value per share		$25.76
Maximum offering price per share*		$27.04
C-Class:
Net assets	$	498,695
Capital shares outstanding		20,430
Net asset value per share		$24.41
H-Class:
Net assets	$	2,025,810
Capital shares outstanding		78,738
Net asset value per share		$25.73
Repurchase agreement, at cost	$	2,852,021
Total cost	$	2,852,021

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	4,551
Total investment income		4,551
Expenses:
Management fees		23,701
Transfer agent and administrative fees		6,584
Distribution and Service Fees:
A-Class		685
C-Class		2,501
H-Class		5,273
Portfolio accounting fees		2,633
Trustees’ fees**		197
Miscellaneous		4,513
Total expenses		46,087
Net investment loss		(41,536	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Equity index swaps		(274,273	)
Futures contracts		(359,128	)
Net realized loss		(633,401	)
Net unrealized appreciation (depreciation) during the period on:
Equity index swaps		161,030
Futures contracts		(496	)
Net unrealized appreciation		160,534
Net loss		(472,867	)
Net decrease in net assets resulting from operations	$	(514,403	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

66    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(41,536	)	$	(84,936	)
Net realized loss during the period on investments		(633,401	)		(4,520,733	)
Net unrealized appreciation during the period on investments		160,534			163,417
Net decrease in net assets resulting from operations		(514,403	)		(4,442,252	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		481,971			3,321,246
C-Class		1,278,469			3,242,403
H-Class		24,536,815			56,497,756
Cost of shares redeemed
A-Class		(760,987	)		(2,621,482	)
C-Class		(1,001,633	)		(3,059,874	)
H-Class		(24,969,004	)		(57,174,748	)
Net increase (decrease) from capital share transactions		(434,369	)		205,301
Net decrease in net assets		(948,772	)		(4,236,951	)
Net assets:
Beginning of period		3,891,813			8,128,764
End of period	$	2,943,041		$	3,891,813
Accumulated net investment loss at end of period	$	(41,536	)	$	—
Capital share activity:
Shares sold
A-Class		16,938			96,465
C-Class		47,740			94,397
H-Class		883,437			1,600,220
Shares redeemed
A-Class		(27,484	)		(79,043	)
C-Class		(37,596	)		(91,190	)
H-Class		(910,386	)		(1,646,993	)
Total capital share activity		(27,351	)		(26,144	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    67

  INVERSE MID-CAP STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.37			$48.21			$37.07			$33.78			$37.03			$44.01
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.52	)		(.22	)		.81			1.35			.87
Net gain (loss) on securities (realized and unrealized)		(1.40	)		(20.32	)		11.40			3.11			(1.81	)		(7.20	)
Total from investment operations		(1.61	)		(20.84	)		11.18			3.92			(.46	)		(6.33	)
Less distributions:
Distributions from net investment income		—			—			(.04	)		(.63	)		(2.79	)		(.65	)
Total distributions		—			—			(.04	)		(.63	)		(2.79	)		(.65	)
Net asset value, end of period		$25.76			$27.37			$48.21			$37.07			$33.78			$37.03
Total Returnc		(5.88%	)		(43.23%	)		30.14%			11.83%			(1.35%	)		(14.44%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$419			$733			$452			$906			$477			$161
Ratios to average net assets:
Net investment income (loss)		(1.51%	)		(1.56%	)		(0.55%	)		2.35%			3.52%			2.12%
Total expenses		1.68%			1.69%			1.68%			1.66%			1.65%			1.66%
Portfolio turnover rate		—			—			—			—			—			—
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$26.03			$46.24			$35.82			$32.89			$36.43			$43.62
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.75	)		(.41	)		.60			1.05			.15
Net gain (loss) on securities (realized and unrealized)		(1.33	)		(19.46	)		10.87			2.96			(1.80	)		(6.69	)
Total from investment operations		(1.62	)		(20.21	)		10.46			3.56			(.75	)		(6.54	)
Less distributions:
Distributions from net investment income		—			—			(.04	)		(.63	)		(2.79	)		(.65	)
Total distributions		—			—			(.04	)		(.63	)		(2.79	)		(.65	)
Net asset value, end of period		$24.41			$26.03			$46.24			$35.82			$32.89			$36.43
Total Returnc		(6.22%	)		(43.71%	)		29.18%			11.05%			(2.19%	)		(15.05%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$499			$268			$327			$1,478			$801			$1,147
Ratios to average net assets:
Net investment income (loss)		(2.25%	)		(2.30%	)		(1.07%	)		1.83%			2.81%			1.54%
Total expenses		2.42%			2.43%			2.43%			2.41%			2.40%			2.41%
Portfolio turnover rate		—			—			—			—			—			—

68    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  INVERSE MID-CAP STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.35			$48.21			$37.07			$33.78			$37.04			$44.01
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.55	)		(.27	)		.78			1.35			.83
Net gain (loss) on securities (realized and unrealized)		(1.41	)		(20.31	)		11.45			3.14			(1.82	)		(7.15	)
Total from investment operations		(1.62	)		(20.86	)		11.18			3.92			(.47	)		(6.32	)
Less distributions:
Distributions from net investment income		—			—			(.04	)		(.63	)		(2.79	)		(.65	)
Total distributions		—			—			(.04	)		(.63	)		(2.79	)		(.65	)
Net asset value, end of period		$25.73			$27.35			$48.21			$37.07			$33.78			$37.04
Total Returnc		(5.92%	)		(43.27%	)		30.14%			11.83%			(1.38%	)		(14.42%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,026			$2,891			$7,350			$46,630			$15,531			$18,475
Ratios to average net assets:
Net investment income (loss)		(1.51%	)		(1.55%	)		(0.62%	)		2.26%			3.51%			2.01%
Total expenses		1.68%			1.68%			1.70%			1.65%			1.66%			1.64%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    69

FUND PROFILE (Unaudited)

September 30, 2010

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for small-cap securities on a daily basis. The Fund’s current benchmark is the Russell 2000^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
TIBCO Software, Inc.	0.1	%
Riverbed Technology, Inc.	0.1	%
VeriFone Systems, Inc.	0.1	%
Nordson Corp.	0.1	%
Rackspace Hosting, Inc.	0.1	%
Sotheby’s	0.1	%
Highwoods Properties, Inc.	0.1	%
Parametric Technology Corp.	0.1	%
Warnaco Group, Inc.	0.1	%
Dril-Quip, Inc.	0.1	%
Top Ten Total	1.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

70    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 42.0%
FINANCIALS - 8.8%
Highwoods Properties, Inc.		606	$	19,677
Home Properties, Inc.		347		18,356
MFA Financial, Inc.		2,400		18,312
Omega Healthcare Investors, Inc.		803		18,027
National Retail Properties, Inc.		713		17,903
BioMed Realty Trust, Inc.		969		17,364
Apollo Investment Corp.		1,659		16,972
American Capital Ltd.*		2,909		16,901
FirstMerit Corp.		918		16,818
Entertainment Properties Trust		389		16,797
Tanger Factory Outlet Centers		350		16,499
American Campus Communities, Inc.		542		16,498
Alterra Capital Holdings Ltd.		820		16,334
Washington Real Estate Investment Trust		509		16,151
ProAssurance Corp.*		280		16,125
MGIC Investment Corp.*		1,708		15,765
Mid-America Apartment Communities, Inc.		270		15,736
CBL & Associates Properties, Inc.		1,184		15,463
SVB Financial Group*		359		15,193
Platinum Underwriters Holdings Ltd.		349		15,188
Kilroy Realty Corp.		448		14,847
Stifel Financial Corp.*		303		14,026
LaSalle Hotel Properties		595		13,917
Signature Bank *		353		13,711
Westamerica Bancorporation		246		13,405
First American Financial Corp.		876		13,087
Equity Lifestyle Properties, Inc.		233		12,694
Healthcare Realty Trust, Inc.		542		12,677
Prosperity Bancshares, Inc.		386		12,533
DiamondRock Hospitality Co.*		1,315		12,479
Extra Space Storage, Inc.		746		11,966
Trustmark Corp.		546		11,870
Potlatch Corp.		349		11,866
Iberiabank Corp.		232		11,595
Post Properties, Inc.		415		11,587
NewAlliance Bancshares, Inc.		902		11,383
Umpqua Holdings Corp.		972		11,022
Northwest Bancshares, Inc.		951		10,642
Montpelier Re Holdings Ltd.		612		10,600
CNO Financial Group, Inc.*		1,908		10,570
Astoria Financial Corp.		740		10,086
Delphi Financial Group, Inc. — Class A		400		9,996
Knight Capital Group, Inc. — Class A*		796		9,862
Webster Financial Corp.		560		9,834
Colonial Properties Trust		603		9,763
PHH Corp.*		459		9,667
Redwood Trust, Inc.		666		9,630

			MARKET
	SHARES		VALUE
Medical Properties Trust, Inc.		946	$	9,592
UMB Financial Corp.		270		9,588
Argo Group International Holdings Ltd.		268		9,310
Susquehanna Bancshares, Inc.		1,100		9,284
National Health Investors, Inc.		210		9,253
Hatteras Financial Corp.		315		8,968
DuPont Fabros Technology, Inc.		355		8,928
Radian Group, Inc.		1,133		8,860
Glacier Bancorp, Inc.		606		8,848
Portfolio Recovery Associates, Inc.*		136		8,792
Wintrust Financial Corp.		271		8,783
PS Business Parks, Inc.		155		8,768
Cash America International, Inc.		250		8,750
Sovran Self Storage, Inc.		230		8,717
DCT Industrial Trust, Inc.		1,806		8,651
EastGroup Properties, Inc.		229		8,560
RLI Corp.		150		8,493
First Financial Bancorp		500		8,340
FNB Corp.		974		8,337
First Financial Bankshares, Inc.		175		8,223
United Bankshares, Inc.		330		8,214
Tower Group, Inc.		350		8,173
Cathay General Bancorp		670		7,966
Starwood Property Trust, Inc.		400		7,948
Ezcorp, Inc. — Class A*		392		7,856
Old National Bancorp		746		7,833
Sunstone Hotel Investors, Inc.*		844		7,655
KBW, Inc.		299		7,654
International Bancshares Corp.		451		7,617
Franklin Street Properties Corp.		600		7,452
Hancock Holding Co.		246		7,397
MB Financial, Inc.		456		7,396
Selective Insurance Group, Inc.		448		7,298
First Midwest Bancorp, Inc.		630		7,264
Anworth Mortgage Asset Corp.		1,012		7,216
American Capital Agency Corp.		270		7,174
First Cash Financial Services, Inc.*		256		7,104
National Penn Bancshares, Inc.		1,074		6,713
Whitney Holding Corp.		820		6,699
U-Store-It Trust		796		6,647
Capstead Mortgage Corp.		603		6,555
Park National Corp.		102		6,532
Community Bank System, Inc.		283		6,512
Ocwen Financial Corp.*		634		6,429
Columbia Banking System, Inc.		327		6,426
Acadia Realty Trust		336		6,384
BlackRock Kelso Capital Corp.		553		6,359
MF Global Holdings Ltd.*		881		6,343
Alexander’s, Inc.		20		6,316
NBT Bancorp, Inc.		286		6,312
Greenlight Capital Re Ltd. — Class A*		252		6,305
Provident Financial Services, Inc.		510		6,304
World Acceptance Corp.*		140		6,182

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    71

2

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Pico Holdings, Inc.*		203	$	6,062
Government Properties Income Trust		225		6,008
Infinity Property & Casualty Corp.		123		5,999
Lexington Realty Trust		830		5,943
Horace Mann Educators Corp.		330		5,867
Prospect Capital Corp.		604		5,865
CVB Financial Corp.		764		5,738
LTC Properties, Inc.		223		5,691
Employers Holdings, Inc.		360		5,677
Pennsylvania Real Estate Investment Trust		464		5,503
Cousins Properties, Inc.		768		5,484
Texas Capital Bancshares, Inc.*		312		5,388
optionsXpress Holdings, Inc.*		350		5,376
Investors Real Estate Trust		640		5,363
Investment Technology Group, Inc.*		376		5,347
Nelnet, Inc. — Class A		230		5,262
Inland Real Estate Corp.		626		5,202
Forestar Group, Inc.*		305		5,200
Equity One, Inc.		308		5,199
Fifth Street Finance Corp.		463		5,158
PrivateBancorp, Inc. — Class A		450		5,125
American Equity Investment Life Holding Co.		500		5,120
Strategic Hotels & Resorts, Inc.*		1,206		5,113
Sun Communities, Inc.		165		5,065
PacWest Bancorp		265		5,051
Brookline Bancorp, Inc.		495		4,940
Getty Realty Corp.		183		4,910
Hersha Hospitality Trust		943		4,885
Investors Bancorp, Inc.*		406		4,807
First Potomac Realty Trust		319		4,785
First Commonwealth Financial Corp.		876		4,774
Flagstone Reinsurance Holdings S.A.		447		4,743
Invesco Mortgage Capital, Inc.		220		4,734
Oriental Financial Group, Inc.		353		4,695
Oritani Financial Corp.		466		4,651
Navigators Group, Inc.*		103		4,597
National Financial Partners Corp.*		360		4,561
Compass Diversified Holdings		279		4,509
PMI Group, Inc.*		1,222		4,485
Safety Insurance Group, Inc.		106		4,454
Piper Jaffray Cos.*		152		4,428
City Holding Co.		143		4,386
Glimcher Realty Trust		711		4,373
United Fire & Casualty Co.		205		4,348
Chemical Financial Corp.		210		4,334
Dollar Financial Corp.*		206		4,299
Sterling Bancshares, Inc.		780		4,189
Meadowbrook Insurance Group, Inc.		462		4,144
Enstar Group Ltd.*		57		4,138

			MARKET
	SHARES		VALUE
Boston Private Financial Holdings, Inc.		627	$	4,101
Bank of the Ozarks, Inc.		110		4,080
Primerica, Inc.		200		4,068
Independent Bank Corp.		179		4,031
MarketAxess Holdings, Inc.		232		3,939
MCG Capital Corp.		665		3,884
Simmons First National Corp. — Class A		137		3,873
Walter Investment Management Corp.		221		3,865
Associated Estates Realty Corp.		271		3,789
Evercore Partners, Inc. — Class A		131		3,748
S&T Bancorp, Inc.		214		3,728
Trustco Bank Corp.		662		3,681
Western Alliance Bancorp*		549		3,678
Home Bancshares, Inc.		178		3,617
Cardtronics, Inc.*		232		3,580
Ramco-Gershenson Properties Trust		334		3,577
Artio Global Investors, Inc. — Class A		232		3,550
Harleysville Group, Inc.		105		3,443
Education Realty Trust, Inc.		480		3,432
Pebblebrook Hotel Trust*		188		3,386
Retail Opportunity Investments Corp.		352		3,369
Cohen & Steers, Inc.		154		3,342
SCBT Financial Corp.		107		3,337
Banco Latinoamericano de Comercio Exterior S.A. — Class E		230		3,324
Credit Acceptance Corp.*		54		3,270
WesBanco, Inc.		200		3,268
Urstadt Biddle Properties, Inc. — Class A		180		3,254
Hilltop Holdings, Inc.*		339		3,248
Renasant Corp.		212		3,225
Community Trust Bancorp, Inc.		119		3,224
Dime Community Bancshares, Inc.		232		3,213
Ashford Hospitality Trust, Inc.*		355		3,213
Maiden Holdings Ltd.		420		3,196
PennantPark Investment Corp.		300		3,183
Flushing Financial Corp.		270		3,121
FBL Financial Group, Inc. — Class A		120		3,118
Duff & Phelps Corp. — Class A		231		3,112
American Physicians Capital, Inc.		75		3,110
Sandy Spring Bancorp, Inc.		200		3,100
Hercules Technology Growth Capital, Inc.		306		3,094
TowneBank		205		3,067
Universal Health Realty Income Trust		89		3,062
AMERISAFE, Inc.*		162		3,042
Citizens Republic Bancorp, Inc.*		3,369		3,036
FelCor Lodging Trust, Inc.*		658		3,027
BGC Partners, Inc. — Class A		478		2,854
CNA Surety Corp.*		158		2,831
Cedar Shopping Centers, Inc.		457		2,779

72    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Tompkins Financial Corp.		70	$	2,776
Provident New York Bancorp		330		2,769
Amtrust Financial Services, Inc.		188		2,730
First Industrial Realty Trust, Inc.*		538		2,728
MVC Capital, Inc.		210		2,724
FPIC Insurance Group, Inc.*		77		2,702
Beneficial Mutual Bancorp, Inc.*		301		2,700
Pennymac Mortgage Investment Trust		150		2,683
CapLease, Inc.		480		2,683
First Financial Corp.		90		2,655
GFI Group, Inc.		572		2,654
eHealth, Inc.*		204		2,636
Parkway Properties, Inc.		177		2,620
Pinnacle Financial Partners, Inc.*		280		2,573
Oppenheimer Holdings, Inc. — Class A		92		2,571
StellarOne Corp.		200		2,544
Danvers Bancorp, Inc.		162		2,483
SY Bancorp, Inc.		100		2,482
Lakeland Financial Corp.		132		2,463
Univest Corporation of Pennsylvania		140		2,444
iStar Financial, Inc.*		796		2,436
NorthStar Realty Finance Corp.		640		2,394
Tejon Ranch Co.*		110		2,384
Southside Bancshares, Inc.		126		2,380
TICC Capital Corp.		229		2,370
Cardinal Financial Corp.		246		2,364
Resource Capital Corp.		372		2,362
Nara Bancorp, Inc.*		330		2,330
Bancfirst Corp.		57		2,306
TradeStation Group, Inc.*		350		2,303
Cogdell Spencer, Inc.		363		2,294
1st Source Corp.		132		2,292
Berkshire Hills Bancorp, Inc.		120		2,275
Washington Trust Bancorp, Inc.		118		2,256
National Western Life Insurance Co. — Class A		16		2,251
Encore Capital Group, Inc.*		123		2,216
Safeguard Scientifics, Inc.*		176		2,205
Colony Financial, Inc.		119		2,199
GAMCO Investors, Inc. — Class A		57		2,196
Capital Southwest Corp.		24		2,179
Cypress Sharpridge Investments, Inc.		158		2,109
Camden National Corp.		60		2,079
Phoenix Companies, Inc.*		986		2,071
Hudson Valley Holding Corp.		106		2,069
Citizens, Inc.*		300		2,067
WSFS Financial Corp.		55		2,063
Kite Realty Group Trust		464		2,060
Saul Centers, Inc.		49		2,056
Gladstone Capital Corp.		182		2,051
PMA Capital Corp. — Class A*		272		2,051
Trico Bancshares		133		2,044
Southwest Bancorp, Inc.		157		2,036

			MARKET
	SHARES		VALUE
Baldwin & Lyons, Inc. — Class B		80	$	2,036
Arrow Financial Corp.		81		2,031
First Busey Corp.		446		2,029
United Financial Bancorp, Inc.		150		2,026
Suffolk Bancorp		80		2,026
Sterling Bancorp		231		2,007
Bank Mutual Corp.		386		2,003
Two Harbors Investment Corp.		220		1,984
Union First Market Bankshares Corp.		150		1,959
Westfield Financial, Inc.		251		1,958
International Assets Holding Corp.*		106		1,919
Global Indemnity plc — Class A*		119		1,910
Great Southern Bancorp, Inc.		86		1,872
Kennedy-Wilson Holdings, Inc.*		176		1,866
Washington Banking Co.		134		1,857
Winthrop Realty Trust		150		1,854
Advance America Cash Advance Centers, Inc.		460		1,854
West Coast Bancorp*		810		1,847
Centerstate Banks, Inc.		215		1,845
Abington Bancorp, Inc.		175		1,844
Main Street Capital Corp.		116		1,843
Ameris Bancorp		197		1,842
Calamos Asset Management, Inc. — Class A		160		1,840
Westwood Holdings Group, Inc.		54		1,827
Agree Realty Corp.		72		1,818
Monmouth Real Estate Investment Corp. — Class A		232		1,814
First Community Bancshares, Inc.		139		1,793
SWS Group, Inc.		250		1,793
United Community Banks, Inc.*		797		1,785
NewStar Financial, Inc.*		240		1,778
Presidential Life Corp.		181		1,774
State Auto Financial Corp.		116		1,764
First Bancorp		129		1,757
Republic Bancorp, Inc. — Class A		83		1,754
Triangle Capital Corp.		108		1,726
Stewart Information Services Corp.		152		1,721
Heartland Financial USA, Inc.		110		1,693
Territorial Bancorp, Inc.		100		1,683
American Physicians Service Group, Inc.		52		1,682
First Merchants Corp.		219		1,671
Home Federal Bancorp, Inc.		136		1,655
Ames National Corp.		83		1,655
Newcastle Investment Corp.*		527		1,634
Eagle Bancorp, Inc.*		140		1,607
NGP Capital Resources Co.		177		1,604
Northfield Bancorp, Inc.		148		1,601
Financial Institutions, Inc.		90		1,589
CoBiz Financial, Inc.		281		1,562
First Financial Holdings, Inc.		139		1,548
German American Bancorp, Inc.		90		1,544
Consolidated-Tomoka Land Co.		54		1,540

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    73

4

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
American Safety Insurance Holdings Ltd.*		94	$	1,536
OceanFirst Financial Corp.		125		1,534
Center Financial Corp.*		300		1,527
Apollo Commercial Real Estate Finance, Inc.		93		1,495
HFF, Inc. — Class A*		160		1,485
Lakeland Bancorp, Inc.		176		1,484
Bank of Marin Bancorp		46		1,483
National Bankshares, Inc.		57		1,471
BankFinancial Corp.		160		1,467
Financial Engines, Inc.*		110		1,461
SeaBright Holdings, Inc.		180		1,451
Kayne Anderson Energy Development Co.		90		1,444
CreXus Investment Corp.		119		1,432
First of Long Island Corp.		57		1,424
ESSA Bancorp, Inc.		120		1,421
Excel Trust, Inc.		126		1,420
Avatar Holdings, Inc.*		74		1,412
Dynex Capital, Inc.		130		1,401
FBR Capital Markets Corp.*		446		1,400
Arlington Asset Investment Corp. — Class A		60		1,399
First Interstate Bancsystem, Inc. — Class A		103		1,386
Bryn Mawr Bank Corp.		80		1,378
Ambac Financial Group, Inc.*		2,460		1,365
Epoch Holding Corp.		106		1,365
Bancorp, Inc.*		202		1,351
Pacific Continental Corp.		149		1,348
Orrstown Financial Services, Inc.		58		1,343
Citizens & Northern Corp.		103		1,339
MainSource Financial Group, Inc.		175		1,337
Terreno Realty Corp.*		72		1,312
Gladstone Investment Corp.		190		1,273
State Bancorp, Inc.		140		1,257
LaBranche & Company, Inc.*		320		1,248
Diamond Hill Investment Group, Inc.		17		1,241
Virtus Investment Partners, Inc.*		41		1,241
Chatham Lodging Trust		66		1,228
Bridge Bancorp, Inc.		49		1,225
CNB Financial Corp.		89		1,224
Capital City Bank Group, Inc.		100		1,214
Metro Bancorp, Inc.*		116		1,205
First Mercury Financial Corp.		119		1,200
OmniAmerican Bancorp, Inc.*		106		1,195
1st United Bancorp, Inc.*		183		1,177
Donegal Group, Inc. — Class A		90		1,176
RAIT Financial Trust*		710		1,171
Penns Woods Bancorp, Inc.		35		1,157
ViewPoint Financial Group		125		1,156
National Interstate Corp.		53		1,154
Enterprise Financial Services Corp.		123		1,144
Life Partners Holdings, Inc.		60		1,142
Gladstone Commercial Corp.		66		1,133

			MARKET
	SHARES		VALUE
Hanmi Financial Corp.*		880	$	1,126
Alliance Financial Corp.		37		1,119
Harris & Harris Group, Inc.*		261		1,114
One Liberty Properties, Inc.		70		1,114
Peoples Bancorp, Inc.		90		1,113
Kearny Financial Corp.		126		1,113
Wilshire Bancorp, Inc.		170		1,112
Heritage Financial Corp.*		77		1,078
First Marblehead Corp.*		459		1,074
Solar Capital Ltd.		50		1,072
Gleacher & Company, Inc.*		662		1,066
Thomas Properties Group, Inc.		296		1,057
Sierra Bancorp		85		1,050
NYMAGIC, Inc.		40		1,027
Cowen Group, Inc. — Class A*		311		1,023
Mission West Properties, Inc.		150		1,017
MPG Office Trust, Inc.*		406		1,015
Tower Bancorp, Inc.		50		1,014
American National Bankshares, Inc.		46		1,009
Merchants Bancshares, Inc.		40		998
Sanders Morris Harris Group, Inc.		176		996
First Bancorp, Inc.		72		996
Chesapeake Lodging Trust		60		982
ESB Financial Corp.		70		974
THL Credit, Inc.		80		942
Midsouth Bancorp, Inc.		65		920
Medallion Financial Corp.		118		919
Rockville Financial, Inc.		80		919
Taylor Capital Group, Inc.*		80		918
Penson Worldwide, Inc.*		182		905
Kansas City Life Insurance Co.		29		905
UMH Properties, Inc.		83		891
Student Loan Corp.		30		891
Farmer Mac — Class C		80		866
Golub Capital BDC, Inc.		56		857
Hallmark Financial Services*		97		848
Meridian Interstate Bancorp, Inc.*		80		843
Roma Financial Corp.		80		842
Bancorp Rhode Island, Inc.		30		838
Peapack Gladstone Financial Corp.		71		836
MidWestOne Financial Group, Inc.		57		836
Virginia Commerce Bancorp, Inc.*		169		821
EMC Insurance Group, Inc.		38		810
Home Bancorp, Inc.*		60		803
West Bancorporation, Inc.*		127		800
Marlin Business Services Corp.*		66		792
Ladenburg Thalmann Financial Services, Inc.*		776		792
First South Bancorp, Inc.		76		754
JMP Group, Inc.		123		750
Flagstar Bancorp, Inc.*		394		717
Clifton Savings Bancorp, Inc.		82		705
Asset Acceptance Capital Corp.*		129		693
Asta Funding, Inc.		90		687
Green Bankshares, Inc.*		100		679
BofI Holding, Inc.*		57		677

74    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

5

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
CompuCredit Holdings Corp.		140	$	675
Universal Insurance Holdings, Inc.		143		642
Primus Guaranty Ltd.*		140		638
Century Bancorp, Inc. — Class A		26		621
Encore Bancshares, Inc.*		70		503
Crawford & Co. — Class B*		201		488
NASB Financial, Inc.		29		480
Fox Chase Bancorp, Inc.*		50		473
Pzena Investment Management, Inc. — Class A		60		412
Porter Bancorp, Inc.		33		331
Gerova Financial Group Ltd.*		58		313
K-Fed Bancorp		35		276
Rodman & Renshaw Capital Group, Inc.*		126		271
Doral Financial Corp.*		160		266
Waterstone Financial, Inc.*		64		255
California First National Bancorp		20		253
First BanCorp*		794		222
Heritage Financial Group		20		168
Total Financials				1,810,544
INFORMATION TECHNOLOGY 7.9%
TIBCO Software, Inc.*		1,432		25,404
Riverbed Technology, Inc.*		531		24,203
VeriFone Systems, Inc.*		727		22,588
Rackspace Hosting, Inc.*		828		21,511
Parametric Technology Corp.*		996		19,462
Jack Henry & Associates, Inc.		732		18,666
ADTRAN, Inc.		528		18,638
Concur Technologies, Inc.*		336		16,612
Ariba, Inc.*		778		14,704
Netlogic Microsystems, Inc.*		526		14,507
RF Micro Devices, Inc.*		2,293		14,079
Acme Packet, Inc.*		370		14,038
GSI Commerce, Inc.*		565		13,955
Plantronics, Inc.		409		13,816
Aruba Networks, Inc.*		635		13,551
Anixter International, Inc.*		250		13,498
SuccessFactors, Inc.*		534		13,409
TriQuint Semiconductor, Inc.*		1,330		12,768
Quest Software, Inc.*		510		12,541
Finisar Corp.*		650		12,213
Veeco Instruments, Inc.*		348		12,135
Microsemi Corp.*		696		11,936
Netezza Corp.*		442		11,912
Wright Express Corp.*		330		11,784
CACI International, Inc. — Class A*		260		11,768
Digital River, Inc.*		341		11,608
Progress Software Corp.*		349		11,552
Viasat, Inc.*		280		11,511
Hittite Microwave Corp.*		231		11,007
InterDigital, Inc.*		370		10,956
Cavium Networks, Inc.*		378		10,871
Semtech Corp.*		532		10,741
Arris Group, Inc.*		1,076		10,513

			MARKET
	SHARES		VALUE
Sapient Corp.		876	$	10,486
ADC Telecommunications, Inc.*		826		10,465
Blackboard, Inc.*		289		10,416
Omnivision Technologies, Inc.*		450		10,368
Taleo Corp. — Class A*		352		10,204
Cirrus Logic, Inc.*		565		10,080
Plexus Corp.*		343		10,067
Unisys Corp.*		360		10,044
Lawson Software, Inc.*		1,178		9,978
Fair Isaac Corp.		400		9,864
Cymer, Inc.*		260		9,641
Mentor Graphics Corp.*		908		9,598
CommVault Systems, Inc.*		368		9,579
OpenTable, Inc.*		140		9,531
Cognex Corp.		349		9,360
MAXIMUS, Inc.		152		9,360
Acxiom Corp.*		583		9,246
ArcSight, Inc.*		212		9,235
j2 Global Communications, Inc.*		387		9,207
ValueClick, Inc.*		702		9,182
Blackbaud, Inc.		380		9,135
JDA Software Group, Inc.*		360		9,130
Coherent, Inc.*		225		9,002
Infinera Corp.*		762		8,893
Fortinet, Inc.*		355		8,875
TiVo, Inc.*		978		8,861
Benchmark Electronics, Inc.*		532		8,725
Blue Coat Systems, Inc.*		356		8,565
Synaptics, Inc.*		300		8,442
Earthlink, Inc.		928		8,436
Sanmina-SCI Corp.*		680		8,214
Integrated Device Technology, Inc.*		1,390		8,131
Ultimate Software Group, Inc.*		210		8,114
Littelfuse, Inc.*		183		7,997
Netgear, Inc.*		291		7,860
Tessera Technologies, Inc.*		423		7,825
Euronet Worldwide, Inc.*		430		7,736
MKS Instruments, Inc.*		429		7,713
L-1 Identity Solutions, Inc. *		656		7,695
Tekelec*		580		7,517
Rofin-Sinar Technologies, Inc.*		294		7,462
Mantech International Corp. — Class A*		186		7,366
Emulex Corp.*		692		7,224
Advent Software, Inc.*		138		7,202
SRA International, Inc. — Class A*		360		7,099
MicroStrategy, Inc. — Class A*		80		6,929
Checkpoint Systems, Inc.*		340		6,919
SAVVIS, Inc.*		325		6,851
Comtech Telecommunications Corp.		246		6,728
ACI Worldwide, Inc.*		300		6,717
Sourcefire, Inc.*		232		6,691
Power Integrations, Inc.		210		6,676
TTM Technologies, Inc.*		678		6,638
Websense, Inc.*		373		6,617
Oclaro, Inc.*		411		6,580

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    75

6

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Cabot Microelectronics Corp.*		202	$	6,500
FEI Co.*		329		6,439
Scansource, Inc.*		227		6,297
Sonus Networks, Inc.*		1,782		6,290
Insight Enterprises, Inc.*		390		6,100
Take-Two Interactive Software, Inc.*		600		6,084
Universal Display Corp.*		256		6,016
Manhattan Associates, Inc.*		202		5,929
Amkor Technology, Inc.*		898		5,900
DealerTrack Holdings, Inc.*		336		5,739
Harmonic, Inc.*		828		5,697
DTS, Inc.*		149		5,687
Applied Micro Circuits Corp.*		561		5,610
Art Technology Group, Inc.*		1,345		5,555
Aspen Technology, Inc.*		530		5,496
Ebix, Inc.*		234		5,487
CSG Systems International, Inc.*		300		5,469
SYNNEX Corp.*		194		5,459
Tyler Technologies, Inc.*		267		5,383
Netscout Systems, Inc.*		260		5,333
Constant Contact, Inc.*		248		5,315
Power-One, Inc.*		581		5,281
IPG Photonics Corp.*		217		5,238
Entegris, Inc.*		1,119		5,226
Sycamore Networks, Inc.		160		5,186
Diodes, Inc.*		300		5,127
Intermec, Inc.*		416		5,100
Isilon Systems, Inc.*		228		5,080
SolarWinds, Inc.*		292		5,040
Terremark Worldwide, Inc.*		486		5,025
Stratasys, Inc.*		181		5,017
OSI Systems, Inc.*		136		4,940
Heartland Payment Systems, Inc.		320		4,870
DG FastChannel, Inc.*		223		4,850
LogMeIn, Inc.*		134		4,821
Black Box Corp.		150		4,809
Cogent, Inc.*		450		4,788
Syntel, Inc.		106		4,717
Electronics for Imaging, Inc.*		389		4,715
Lattice Semiconductor Corp.*		990		4,702
Loral Space & Communications, Inc.*		90		4,698
Entropic Communications, Inc.*		482		4,627
comScore, Inc.*		196		4,610
Park Electrochemical Corp.		175		4,610
Volterra Semiconductor Corp.*		211		4,541
Monolithic Power Systems, Inc.*		276		4,507
Rogers Corp.*		141		4,439
Standard Microsystems Corp.*		194		4,425
Pegasystems, Inc.		142		4,409
VirnetX Holding Corp.		300		4,404
MTS Systems Corp.		140		4,340
STEC, Inc.*		346		4,308
United Online, Inc.		753		4,307
Micrel, Inc.		430		4,240
Brightpoint, Inc.*		602		4,208
Radiant Systems, Inc.*		240		4,104

			MARKET
	SHARES		VALUE
Bottomline Technologies, Inc.*		263	$	4,040
NIC, Inc.		485		4,021
ATMI, Inc.*		270		4,012
Advanced Energy Industries, Inc.*		305		3,983
Forrester Research, Inc.*		120		3,970
Quantum Corp.*		1,830		3,880
Xyratex Ltd.*		260		3,858
TeleTech Holdings, Inc.*		260		3,858
MIPS Technologies, Inc. — Class A*		387		3,766
Kulicke & Soffa Industries, Inc.*		603		3,733
TNS, Inc.*		220		3,729
Compellent Technologies, Inc.*		203		3,691
Ancestry.com, Inc.*		162		3,687
iGate Corp.		203		3,682
Formfactor, Inc.*		428		3,681
Brooks Automation, Inc.*		546		3,664
Oplink Communications, Inc.*		183		3,631
Kenexa Corp.*		203		3,557
Newport Corp.*		312		3,538
Epicor Software Corp.*		406		3,532
RightNow Technologies, Inc.*		177		3,487
Internet Capital Group, Inc.*		315		3,474
NetSuite, Inc.*		146		3,441
Ultratech, Inc.*		200		3,420
Ixia*		275		3,410
Anadigics, Inc.*		556		3,386
Internet Brands, Inc. — Class A*		252		3,347
Avid Technology, Inc.*		255		3,343
EPIQ Systems, Inc.		270		3,310
Zoran Corp.*		430		3,285
Maxwell Technologies, Inc.*		219		3,200
LivePerson, Inc.*		376		3,158
Silicon Image, Inc.*		656		3,136
Synchronoss Technologies, Inc.*		175		3,117
Sigma Designs, Inc.*		269		3,091
Unica Corp.*		147		3,084
FARO Technologies, Inc.*		139		3,032
Move, Inc.*		1,334		2,975
Daktronics, Inc.		300		2,946
Rubicon Technology, Inc.*		129		2,927
Methode Electronics, Inc.		322		2,924
Actel Corp.*		180		2,871
CTS Corp.		296		2,848
Vocus, Inc.*		150		2,772
SMART Modular Technologies WWH, Inc.*		446		2,689
DivX, Inc.*		281		2,678
Infospace, Inc.*		308		2,667
LTX-Credence Corp.*		1,256		2,625
Smith Micro Software, Inc.*		260		2,584
Electro Scientific Industries, Inc.*		230		2,555
ExlService Holdings, Inc.*		131		2,548
Cohu, Inc.		202		2,543
Hypercom Corp.*		390		2,535
Ceva, Inc.*		177		2,531

76    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

7

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Diamond Management &
Technology Consultants, Inc. — Class A		200	$	2,500
Mercury Computer Systems, Inc.*		205		2,466
Sonic Solutions, Inc.*		216		2,458
Extreme Networks*		780		2,426
ModusLink Global Solutions, Inc.*		382		2,426
EMS Technologies, Inc.*		130		2,422
Echelon Corp.*		280		2,394
Photronics, Inc.*		450		2,380
Knot, Inc.*		260		2,374
Cass Information Systems, Inc.		69		2,367
THQ, Inc.*		580		2,332
RealNetworks, Inc.*		708		2,308
Imation Corp.*		246		2,295
Nanometrics, Inc.*		150		2,257
Limelight Networks, Inc.*		381		2,240
Rudolph Technologies, Inc.*		269		2,235
S1 Corp.*		429		2,235
Opnet Technologies, Inc.		123		2,232
Measurement Specialties, Inc.*		118		2,181
Internap Network Services Corp.*		443		2,175
Mindspeed Technologies, Inc.*		279		2,168
UTStarcom, Inc.*		998		2,166
Super Micro Computer, Inc.*		208		2,161
Lionbridge Technologies, Inc.*		501		2,154
Novatel Wireless, Inc.*		270		2,128
Symmetricom, Inc.*		368		2,105
Aviat Networks, Inc.*		510		2,086
Anaren, Inc.*		123		2,065
Powerwave Technologies, Inc.*		1,120		2,038
Silicon Graphics International Corp.*		260		2,018
Digi International, Inc.*		210		1,993
Kopin Corp.*		561		1,992
KIT Digital, Inc.*		166		1,990
Cray, Inc.*		300		1,980
Actuate Corp.*		382		1,967
Keithley Instruments, Inc.		90		1,936
Multi-Fineline Electronix, Inc.*		88		1,935
Liquidity Services, Inc.*		120		1,921
LoopNet, Inc.*		162		1,918
Pericom Semiconductor Corp.*		220		1,912
Rosetta Stone, Inc.*		90		1,912
IXYS Corp.*		200		1,910
Intevac, Inc.*		190		1,902
Integrated Silicon Solution, Inc.*		220		1,894
Electro Rent Corp.		142		1,886
ShoreTel, Inc.*		380		1,885
Interactive Intelligence, Inc.*		107		1,883
Radisys Corp.*		198		1,865
Exar Corp.*		310		1,857
Bel Fuse, Inc. — Class B		89		1,853
Perficient, Inc.*		200		1,828
support.com, Inc.*		396		1,814
KVH Industries, Inc.*		120		1,801

			MARKET
	SHARES		VALUE
Hughes Communications, Inc.*		66	$	1,798
Supertex, Inc.*		80		1,770
AXT, Inc.*		264		1,748
Monotype Imaging Holdings, Inc.*		190		1,738
Global Cash Access Holdings, Inc.*		426		1,738
MoneyGram International, Inc.*		702		1,713
Axcelis Technologies, Inc.*		886		1,710
Seachange International, Inc.*		230		1,704
SS&C Technologies Holdings, Inc.*		105		1,659
Comverge, Inc.*		210		1,651
Spansion, Inc. — Class A*		110		1,647
Ciber, Inc.*		542		1,631
Magma Design Automation, Inc.*		439		1,624
Spectrum Control, Inc.*		106		1,560
NVE Corp.*		36		1,549
Technitrol, Inc.		350		1,544
Ultra Clean Holdings*		177		1,526
Wave Systems Corp. — Class A*		676		1,514
TeleCommunication Systems, Inc. — Class A*		386		1,509
DemandTec, Inc.*		160		1,506
PROS Holdings, Inc.*		162		1,503
Globecomm Systems, Inc.*		179		1,498
VASCO Data Security International, Inc.*		229		1,488
Immersion Corp.*		250		1,477
Zygo Corp.*		146		1,431
Digimarc Corp.*		60		1,408
DSP Group, Inc.*		200		1,400
Deltek, Inc.*		170		1,362
Zix Corp.*		476		1,352
Microtune, Inc.*		456		1,322
Rimage Corp.*		80		1,315
Saba Software, Inc.*		240		1,306
Gerber Scientific, Inc.*		210		1,296
QuinStreet, Inc.*		86		1,293
Keynote Systems, Inc.		111		1,290
Advanced Analogic Technologies, Inc.*		359		1,260
Richardson Electronics, Ltd.		120		1,260
Archipelago Learning, Inc.*		105		1,257
BigBand Networks, Inc.*		431		1,224
Openwave Systems, Inc.*		712		1,210
Evergreen Solar, Inc.*		1,646		1,208
NCI, Inc. — Class A*		63		1,192
Travelzoo, Inc.*		46		1,185
Mattson Technology, Inc.*		426		1,171
Stamps.com, Inc.*		90		1,170
PLX Technology, Inc.*		319		1,155
Virtusa Corp.*		119		1,153
Echo Global Logistics, Inc.*		90		1,149
DDi Corp.		123		1,137
Conexant Systems, Inc.*		690		1,132
MoSys, Inc.*		230		1,122
Integral Systems, Inc.*		152		1,122
American Software, Inc. — Class A		190		1,121

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    77

8

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Dice Holdings, Inc.*		130	$	1,102
Renaissance Learning, Inc.		108		1,101
X-Rite, Inc.*		284		1,076
Trident Microsystems, Inc.*		609		1,041
CDC Corporation — Class A*		246		1,041
Hackett Group, Inc.*		250		1,032
Online Resources Corp.*		229		1,017
PC-Telephone, Inc.*		160		982
Agilysys, Inc.*		150		975
SRS Labs, Inc.*		100		934
Computer Task Group, Inc.*		121		924
GSI Technology, Inc.*		160		917
Network Equipment Technologies, Inc.*		260		897
Marchex, Inc. — Class A		160		872
Calix, Inc.*		60		862
FSI International, Inc.*		316		841
CPI International, Inc.*		60		840
Occam Networks, Inc.*		106		830
Meru Networks, Inc.*		46		793
ICx Technologies, Inc.*		103		778
FalconStor Software, Inc.*		250		765
PDF Solutions, Inc.*		203		751
Guidance Software, Inc.*		122		712
Tier Technologies, Inc. — Class B*		126		698
TechTarget, Inc.*		131		688
ePlus, Inc.*		32		686
Hutchinson Technology, Inc.*		196		680
Tessco Technologies, Inc.		45		678
MaxLinear, Inc. — Class A*		60		673
Viasystems Group, Inc.*		40		608
Opnext, Inc.*		377		592
Local.com Corp.*		126		557
PC Connection, Inc.*		80		546
SPS Commerce, Inc.*		40		513
Presstek, Inc.*		228		499
QAD, Inc.*		114		474
Convio, Inc.*		50		461
Alpha & Omega Semiconductor Ltd.*		40		454
Network Engines, Inc.*		310		453
TeleNav, Inc.*		70		370
Ikanos Communications, Inc.*		260		309
Stream Global Services, Inc.*		50		202
Total Information Technology				1,627,137
INDUSTRIALS - 6.4% Nordson Corp.		299		22,033
Woodward Governor Co.		516		16,729
Acuity Brands, Inc.		376		16,634
CLARCOR, Inc.		430		16,611
Baldor Electric Co.		398		16,079
GrafTech International Ltd.*		1,026		16,036
Alaska Air Group, Inc.*		308		15,717
Hexcel Corp.*		826		14,695
Genesee & Wyoming, Inc. — Class A*		335		14,536

			MARKET
	SHARES		VALUE
Esterline Technologies Corp.*		249	$	14,250
EMCOR Group, Inc.*		572		14,065
JetBlue Airways Corp.*		2,089		13,975
Clean Harbors, Inc.*		205		13,889
Moog, Inc. — Class A*		382		13,565
Actuant Corp. — Class A		575		13,202
Watsco, Inc.		233		12,973
US Airways Group, Inc.*		1,380		12,765
Dollar Thrifty Automotive Group, Inc.*		250		12,535
Teledyne Technologies, Inc.*		310		12,344
Brady Corp. — Class A		416		12,135
Geo Group, Inc.*		516		12,049
American Superconductor Corp.*		380		11,818
AO Smith Corp.		204		11,810
Curtiss-Wright Corp.		389		11,787
HEICO Corp.		254		11,593
Atlas Air Worldwide Holdings, Inc.*		221		11,116
Tetra Tech, Inc.*		530		11,114
HNI Corp.		384		11,044
Applied Industrial Technologies, Inc.		360		11,016
United Stationers, Inc.*		200		10,702
Belden, Inc.		398		10,499
Triumph Group, Inc.		140		10,443
Avis Budget Group, Inc.*		880		10,252
EnerSys*		410		10,238
Knight Transportation, Inc.		506		9,781
Kaydon Corp.		276		9,550
ABM Industries, Inc.		442		9,543
Herman Miller, Inc.		480		9,446
HUB Group, Inc. — Class A*		322		9,422
Brink’s Co.		400		9,200
Old Dominion Freight Line, Inc.*		360		9,151
Corporate Executive Board Co.		288		9,089
Middleby Corp.*		140		8,875
Mueller Industries, Inc.		328		8,689
CoStar Group, Inc.*		176		8,573
Simpson Manufacturing Company, Inc.		330		8,507
Rollins, Inc.		362		8,464
Watts Water Technologies, Inc. — Class A		248		8,444
AirTran Holdings, Inc.*		1,146		8,423
Healthcare Services Group, Inc.		368		8,387
Deluxe Corp.		430		8,226
II-VI, Inc.*		219		8,175
Briggs & Stratton Corp.		429		8,155
Insituform Technologies, Inc. — Class A*		330		7,979
United Rentals, Inc.*		531		7,880
GeoEye, Inc.*		189		7,651
Orbital Sciences Corp.*		500		7,650
ESCO Technologies, Inc.		230		7,650
Barnes Group, Inc.		431		7,581

78    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

9

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Werner Enterprises, Inc.		360	$	7,376
DigitalGlobe, Inc.*		228		6,931
Skywest, Inc.		481		6,715
Granite Construction, Inc.		292		6,640
Franklin Electric Company, Inc.		200		6,632
Korn*		389		6,434
Heartland Express, Inc.		430		6,394
Forward Air Corp.		240		6,240
Mine Safety Appliances Co.		230		6,233
Knoll, Inc.		400		6,204
AAR Corp.*		330		6,158
Robbins & Myers, Inc.		229		6,133
Interface, Inc. — Class A		430		6,119
RBC Bearings, Inc.*		180		6,116
American Science & Engineering, Inc.		80		5,892
Cubic Corp.		143		5,834
Beacon Roofing Supply, Inc.*		400		5,828
Kaman Corp.		220		5,766
Amerco, Inc.*		72		5,723
Advisory Board Co.*		127		5,607
Quanex Building Products Corp.		324		5,595
A123 Systems, Inc.*		620		5,561
Steelcase, Inc. — Class A		661		5,506
EnPro Industries, Inc.*		176		5,505
Allegiant Travel Co. — Class A		130		5,502
Polypore International, Inc.*		180		5,429
Badger Meter, Inc.		134		5,424
Unifirst Corp.		122		5,386
Resources Connection, Inc.		390		5,366
Arkansas Best Corp.		220		5,331
Raven Industries, Inc.		140		5,305
Ameron International Corp.		78		5,301
Interline Brands, Inc.*		283		5,105
Acacia Research — Acacia Technologies*		290		5,104
Blount International, Inc.*		400		5,092
TrueBlue, Inc.*		373		5,091
Ceradyne, Inc.*		216		5,044
EnerNOC, Inc.*		160		5,026
Chart Industries, Inc.*		246		5,009
Navigant Consulting, Inc.*		425		4,943
Tennant Co.		157		4,851
Administaff, Inc.		180		4,847
McGrath Rentcorp		200		4,790
Astec Industries, Inc.*		166		4,736
SYKES Enterprises, Inc.*		347		4,712
Universal Forest Products, Inc.		161		4,709
Griffon Corp.*		385		4,693
Mobile Mini, Inc.*		305		4,679
Tutor Perini Corp.*		232		4,661
MasTec, Inc.*		448		4,623
CIRCOR International, Inc.		145		4,582
Lindsay Corp.		102		4,419
AZZ, Inc.		103		4,413
GT Solar International, Inc.*		523		4,378

			MARKET
	SHARES		VALUE
Exponent, Inc.*		130	$	4,367
Albany International Corp. — Class A		230		4,352
Rush Enterprises, Inc. — Class A*		280		4,295
NACCO Industries, Inc. — Class A		48		4,195
ATC Technology Corp.*		169		4,181
Ladish Company, Inc.*		134		4,171
Layne Christensen Co.*		160		4,142
Titan International, Inc.		300		4,071
Wabash National Corp.*		496		4,013
Mueller Water Products, Inc. — Class A		1,320		3,986
Tredegar Corp.		209		3,967
John Bean Technologies Corp.		246		3,963
Ennis, Inc.		220		3,936
Huron Consulting Group, Inc.*		178		3,914
Genco Shipping & Trading Ltd.*		242		3,857
Bowne & Company, Inc.		338		3,830
EnergySolutions, Inc.		753		3,788
TAL International Group, Inc.		151		3,657
Aircastle, Ltd.		431		3,655
ICF International, Inc.*		144		3,610
Kforce, Inc.*		260		3,567
G&K Services, Inc. — Class A		156		3,566
Comfort Systems USA, Inc.		330		3,541
Viad Corp.		176		3,404
Altra Holdings, Inc.*		231		3,403
Consolidated Graphics, Inc.*		80		3,316
Dycom Industries, Inc.*		326		3,257
RSC Holdings, Inc.*		429		3,200
Encore Wire Corp.		155		3,179
Aerovironment, Inc.*		140		3,115
Force Protection, Inc.*		599		3,019
Heidrick & Struggles International, Inc.		154		3,000
Colfax Corp.*		199		2,959
Dolan Co.*		260		2,956
Marten Transport Ltd.		127		2,944
Great Lakes Dredge & Dock Corp.		505		2,934
Sun Hydraulics Corp.		102		2,875
Orion Marine Group, Inc.*		229		2,842
Federal Signal Corp.		527		2,841
Team, Inc.*		165		2,840
Air Transport Services Group, Inc.*		458		2,789
Applied Signal Technology, Inc.		112		2,787
Eagle Bulk Shipping, Inc.*		530		2,767
MYR Group, Inc.*		166		2,721
Kelly Services, Inc. — Class A*		230		2,698
ACCO Brands Corp.*		466		2,679
Columbus McKinnon Corp.*		160		2,654
Gorman-Rupp Co.		96		2,646
SFN Group, Inc.*		439		2,638
FreightCar America, Inc.		105		2,583
Trex Company, Inc.*		135		2,574
Hawaiian Holdings, Inc.*		429		2,570

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    79

1

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Cascade Corp.		80	$	2,544
Standex International Corp.		105		2,540
Greenbrier Companies, Inc.*		162		2,526
LB Foster Co. — Class A*		87		2,518
American Reprographics Co.*		320		2,512
Celadon Group, Inc.*		180		2,486
Vicor Corp.		170		2,484
GenCorp, Inc.*		501		2,465
US Ecology, Inc.		150		2,400
Republic Airways Holdings, Inc.*		288		2,385
AAON, Inc.		100		2,352
3D Systems Corp.*		149		2,341
Gibraltar Industries, Inc.*		259		2,326
Michael Baker Corp.*		70		2,307
Cenveo, Inc.*		456		2,294
Apogee Enterprises, Inc.		250		2,287
Satcon Technology Corp.*		608		2,286
Textainer Group Holdings Ltd.		85		2,273
Generac Holdings, Inc.*		165		2,251
American Commercial Lines, Inc.*		80		2,230
Standard Parking Corp.*		130		2,223
CBIZ, Inc.*		370		2,194
Powell Industries, Inc.*		70		2,178
M&F Worldwide Corp.*		89		2,167
Commercial Vehicle Group, Inc.*		209		2,128
School Specialty, Inc.*		162		2,108
Sauer-Danfoss, Inc.*		98		2,086
PMFG, Inc.*		122		2,080
Taser International, Inc.*		522		2,025
RailAmerica, Inc.*		205		1,974
Excel Maritime Carriers Ltd. — Class A*		350		1,967
Herley Industries, Inc.*		119		1,964
Ducommun, Inc.		90		1,960
Energy Conversion Devices, Inc.*		389		1,953
Kadant, Inc.*		103		1,948
Hawk Corp. — Class A*		45		1,947
Saia, Inc.*		130		1,941
Ener1, Inc.*		520		1,914
Trimas Corp.*		126		1,871
H&E Equipment Services, Inc.*		228		1,817
Titan Machinery, Inc.*		110		1,793
Advanced Battery Technologies, Inc.*		499		1,791
Pacer International, Inc.*		292		1,764
Tecumseh Products Co. — Class A*		150		1,721
Dynamic Materials Corp.		112		1,692
Schawk, Inc. — Class A		90		1,661
Ampco-Pittsburgh Corp.		66		1,638
Microvision, Inc.*		746		1,634
CRA International, Inc.*		90		1,625
On Assignment, Inc.*		305		1,601
Sterling Construction Company, Inc.*		129		1,597
Capstone Turbine Corp.*		2,052		1,584

			MARKET
	SHARES		VALUE
Kimball International, Inc. — Class B		270	$	1,574
Furmanite Corp.*		320		1,562
Baltic Trading Ltd.		140		1,541
APAC Customer Services, Inc.*		270		1,528
International Shipholding Corp.		54		1,525
DXP Enterprises, Inc.*		80		1,518
Aceto Corp.		220		1,494
Houston Wire & Cable Co.		147		1,474
Broadwind Energy, Inc.*		786		1,470
Northwest Pipe Co.*		82		1,435
American Woodmark Corp.		80		1,418
NCI Building Systems, Inc.*		148		1,410
PowerSecure International, Inc.*		150		1,389
Kratos Defense & Security Solutions, Inc.*		130		1,384
Multi-Color Corp.		88		1,355
Insteel Industries, Inc.		150		1,347
Mistras Group, Inc.*		116		1,343
Astronics Corp.*		76		1,326
Innerworkings, Inc.*		200		1,314
LaBarge, Inc.*		103		1,286
Courier Corp.		90		1,280
Energy Recovery, Inc.*		355		1,274
American Railcar Industries, Inc.*		80		1,254
Met-Pro Corp.		124		1,251
Alamo Group, Inc.		56		1,250
CAI International, Inc.*		82		1,244
Graham Corp.		80		1,242
CDI Corp.		96		1,240
Metalico, Inc.*		319		1,222
Ultrapetrol Bahamas Ltd.*		190		1,220
Miller Industries, Inc.		86		1,164
Dynamex, Inc.*		76		1,159
VSE Corp.		32		1,129
GP Strategies Corp.*		123		1,118
LMI Aerospace, Inc.*		70		1,114
Primoris Services Corp.		170		1,112
Horizon Lines, Inc. — Class A		260		1,092
Douglas Dynamics, Inc.		88		1,087
Lydall, Inc.*		146		1,075
Flow International Corp.*		402		1,057
USA Truck, Inc.*		70		1,049
LSI Industries, Inc.		162		1,040
Pike Electric Corp.*		140		1,019
Thermadyne Holdings Corp.*		70		989
Hill International, Inc.*		220		986
Hudson Highland Group, Inc.*		282		970
Roadrunner Transportation Systems, Inc.*		89		965
Volt Information Sciences, Inc.*		132		950
Twin Disc, Inc.		68		949
Fuel Tech, Inc.*		150		941
Park-Ohio Holdings Corp.*		70		931
FuelCell Energy, Inc.*		746		918
Barrett Business Services, Inc.		60		911

80    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

2

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Builders FirstSource, Inc.*		387	$	882
Casella Waste Systems, Inc. —
Class A*		210		882
Franklin Covey Co.*		110		875
Pinnacle Airlines Corp.*		156		847
Universal Truckload Services, Inc.*		53		830
UQM Technologies, Inc.*		310		794
Xerium Technologies, Inc.*		60		791
Applied Energetics, Inc.*		656		735
Patriot Transportation Holding, Inc.*		10		701
Preformed Line Products Co.		20		697
PAM Transportation Services, Inc.*		50		629
Global Defense Technology & Systems, Inc.*		40		548
Argan, Inc.*		58		542
Quality Distribution, Inc.*		82		522
Lawson Products, Inc.		32		489
United Capital Corp.*		20		487
Standard Register Co.		147		429
Coleman Cable, Inc.*		69		413
Hoku Corp.*		146		399
PGT, Inc.*		160		365
BlueLinx Holdings, Inc.*		90		359
Omega Flex, Inc.		22		314
LECG Corp.*		220		242
Compx International, Inc.		15		198
Total Industrials				1,322,465
CONSUMER DISCRETIONARY - 5.9%
Sotheby’s		582		21,429
Warnaco Group, Inc.*		374		19,123
Polaris Industries, Inc.		272		17,707
Deckers Outdoor Corp.*		326		16,287
Tenneco, Inc.*		510		14,775
Dana Holding Corp.*		1,196		14,735
Jones Apparel Group, Inc.		748		14,691
Life Time Fitness, Inc.*		364		14,367
Valassis Communications, Inc.*		420		14,234
Cheesecake Factory, Inc.*		531		14,056
Under Armour, Inc. — Class A*		298		13,422
Carter’s, Inc.*		506		13,323
Rent-A-Center, Inc. — Class A		562		12,578
ArvinMeritor, Inc.*		796		12,370
Wolverine World Wide, Inc.		420		12,184
Dress Barn, Inc.*		505		11,994
Live Nation Entertainment, Inc.*		1,200		11,856
Vail Resorts, Inc.*		314		11,781
Coinstar, Inc.*		267		11,478
Capella Education Co.*		147		11,410
Brunswick Corp.		746		11,354
Childrens Place Retail Stores, Inc.*		232		11,315
Iconix Brand Group, Inc.*		624		10,920
Men’s Wearhouse, Inc.		450		10,705
Gymboree Corp.*		251		10,427
Cooper Tire & Rubber Co.		524		10,286
Jo-Ann Stores, Inc.*		230		10,246

			MARKET
	SHARES		VALUE
Cracker Barrel Old Country Store, Inc.		201	$	10,203
AnnTaylor Stores Corp.*		490		9,918
HSN, Inc.*		330		9,867
Saks, Inc.*		1,147		9,864
Jack in the Box, Inc.*		460		9,862
Jos A. Bank Clothiers, Inc.*		227		9,672
Eastman Kodak Co.*		2,300		9,660
CROCS, Inc.*		732		9,523
OfficeMax, Inc.*		725		9,490
Dillard’s, Inc. — Class A		400		9,456
Regis Corp.		492		9,412
PF Chang’s China Bistro, Inc.		200		9,240
Matthews International Corp. — Class A		260		9,194
Sally Beauty Holdings, Inc.*		802		8,982
Collective Brands, Inc.*		551		8,893
Gaylord Entertainment Co.*		290		8,845
Orient-Express Hotels Ltd. — Class A*		782		8,719
Steven Madden Ltd.*		211		8,664
Pool Corp.		419		8,409
Ulta Salon Cosmetics & Fragrance, Inc.*		270		7,884
Talbots, Inc.*		596		7,808
Cinemark Holdings, Inc.		481		7,744
Monro Muffler Brake, Inc.		166		7,654
Bob Evans Farms, Inc.		263		7,382
99 Cents Only Stores*		390		7,363
Pier 1 Imports, Inc.*		896		7,338
Scholastic Corp.		258		7,178
Buffalo Wild Wings, Inc.*		149		7,136
Timberland Co. — Class A*		352		6,973
Skechers U.S.A., Inc. — Class A*		293		6,883
Texas Roadhouse, Inc. — Class A*		489		6,875
DineEquity, Inc.*		149		6,702
Ryland Group, Inc.		373		6,684
National CineMedia, Inc.		371		6,641
Ruby Tuesday, Inc.*		550		6,529
Helen of Troy Ltd.*		256		6,474
Arbitron, Inc.		230		6,433
K12, Inc.*		220		6,387
Cabela’s, Inc.*		336		6,377
American Greetings Corp. —
Class A		342		6,358
Group 1 Automotive, Inc.*		212		6,335
CEC Entertainment, Inc.*		180		6,179
Cato Corp. — Class A		230		6,155
Hibbett Sports, Inc.*		246		6,138
Finish Line, Inc. — Class A		430		5,981
Genesco, Inc.*		200		5,976
Maidenform Brands, Inc.*		205		5,914
Shutterfly, Inc.*		226		5,874
Columbia Sportswear Co.		100		5,844
Grand Canyon Education, Inc.*		265		5,811

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    81

3

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Pinnacle Entertainment, Inc.*		519	$	5,787
BJ’s Restaurants, Inc.*		204		5,745
Buckle, Inc.		216		5,733
Meritage Homes Corp.*		283		5,552
NutriSystem, Inc.		279		5,368
Scientific Games Corp. — Class A*		550		5,335
Corinthian Colleges, Inc.*		756		5,307
Dex One Corp.*		426		5,231
Barnes & Noble, Inc.		318		5,155
Modine Manufacturing Co.*		390		5,058
American Public Education, Inc.*		150		4,929
Penske Automotive Group, Inc.*		372		4,910
Belo Corp. — Class A*		785		4,867
Liz Claiborne, Inc.*		800		4,864
Fuel Systems Solutions, Inc.*		123		4,811
PEP Boys-Manny Moe & Jack		450		4,761
Papa John’s International, Inc.*		179		4,722
Blue Nile, Inc.*		106		4,716
Interval Leisure Group, Inc.*		350		4,714
American Axle & Manufacturing Holdings, Inc.*		512		4,618
True Religion Apparel, Inc.*		216		4,609
Lumber Liquidators Holdings, Inc.*		187		4,595
Steiner Leisure Ltd.*		119		4,534
Brown Shoe Company, Inc.		380		4,359
Quiksilver, Inc.*		1,100		4,301
National Presto Industries, Inc.		40		4,259
G-III Apparel Group Ltd.*		135		4,236
Lions Gate Entertainment Corp.*		576		4,234
Domino’s Pizza, Inc.*		319		4,217
Sonic Corp.*		519		4,194
Stage Stores, Inc.		316		4,108
Ameristar Casinos, Inc.		235		4,101
Jakks Pacific, Inc.*		230		4,057
Pre-Paid Legal Services, Inc.*		64		3,999
Fred’s, Inc. — Class A		330		3,894
Harte-Hanks, Inc.		330		3,851
Callaway Golf Co.		546		3,822
Shuffle Master, Inc.*		452		3,801
Stewart Enterprises, Inc. — Class A		700		3,773
Churchill Downs, Inc.		105		3,751
Zumiez, Inc.*		177		3,745
RC2 Corp.*		176		3,687
Ethan Allen Interiors, Inc.		210		3,667
La-Z-Boy, Inc.*		429		3,621
Biglari Holdings, Inc.*		11		3,615
Standard Pacific Corporation*		906		3,597
Vitamin Shoppe, Inc.*		131		3,596
Knology, Inc.*		263		3,532
Asbury Automotive Group, Inc.*		250		3,517
PetMed Express, Inc.		200		3,500
Universal Technical Institute, Inc.		178		3,480
Charming Shoppes, Inc.*		986		3,471
Superior Industries International, Inc.		200		3,456
Sonic Automotive, Inc. — Class A*		351		3,450

			MARKET
	SHARES		VALUE
Peet’s Coffee & Tea, Inc.*		100	$	3,423
Drew Industries, Inc.*		160		3,338
DSW, Inc. — Class A*		116		3,329
iRobot Corp.*		177		3,287
Boyd Gaming Corp.*		452		3,277
Ascent Media Corp. — Class A*		120		3,205
Select Comfort Corp.*		460		3,119
Exide Technologies*		651		3,118
Rue21, Inc.*		119		3,071
Volcom, Inc.*		160		3,059
Oxford Industries, Inc.		126		2,996
Pacific Sunwear of California, Inc.*		572		2,992
Wet Seal, Inc. — Class A*		875		2,966
K-Swiss, Inc. — Class A*		231		2,945
Citi Trends, Inc.*		120		2,905
Coldwater Creek, Inc.*		532		2,804
Core-Mark Holding Company, Inc.*		90		2,786
World Wrestling Entertainment, Inc. — Class A		200		2,782
Dorman Products, Inc.*		90		2,774
California Pizza Kitchen, Inc.*		160		2,730
Sinclair Broadcast Group, Inc. — Class A*		385		2,703
AFC Enterprises, Inc.*		215		2,666
Beazer Homes USA, Inc.*		645		2,664
Bridgepoint Education, Inc.*		171		2,644
Denny’s Corp.*		846		2,631
hhgregg, Inc.*		106		2,625
Red Robin Gourmet Burgers, Inc.*		133		2,608
Winnebago Industries, Inc.*		250		2,605
Universal Electronics, Inc.*		122		2,544
Christopher & Banks Corp.		308		2,436
Big 5 Sporting Goods Corp.		180		2,416
Mediacom Communications Corp. — Class A*		346		2,287
CKX, Inc.*		466		2,283
Krispy Kreme Doughnuts, Inc.*		492		2,253
HOT Topic, Inc.		376		2,252
Sturm Ruger & Company, Inc.		160		2,182
Retail Ventures, Inc.*		200		2,152
EW Scripps Co. — Class A*		270		2,128
Kirkland’s, Inc.*		151		2,093
America’s Car-Mart, Inc.*		83		2,090
Blyth, Inc.		50		2,062
Stein Mart, Inc.*		229		2,022
Rentrak Corp.*		80		2,022
Lincoln Educational Services Corp.*		139		2,003
Marcus Corp.		169		2,003
Furniture Brands International, Inc.*		371		1,996
Cavco Industries, Inc.*		55		1,975
McClatchy Co. — Class A*		502		1,973
Perry Ellis International, Inc.*		90		1,966
Bebe Stores, Inc.		270		1,947
Overstock.com, Inc.*		123		1,934
Express, Inc.*		126		1,916
Libbey, Inc.*		139		1,831

82    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

4

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Amerigon, Inc.*		177	$	1,823
Smith & Wesson Holding Corp.*		510		1,816
Ambassadors Group, Inc.		156		1,769
Hovnanian Enterprises, Inc. — Class A*		450		1,768
M/I Homes, Inc.*		165		1,711
Warner Music Group Corp.*		380		1,710
Media General, Inc. — Class A*		190		1,702
Lithia Motors, Inc. — Class A		177		1,697
Standard Motor Products, Inc.		160		1,685
Leapfrog Enterprises, Inc. — Class A*		300		1,644
Speedway Motorsports, Inc.		103		1,615
Haverty Furniture Companies, Inc.		148		1,615
Entercom Communications Corp. — Class A*		205		1,611
Unifi, Inc.*		350		1,578
Journal Communications, Inc. — Class A*		347		1,565
Global Sources Ltd.*		205		1,548
Shoe Carnival, Inc.*		76		1,537
Drugstore.com, Inc.*		782		1,501
Weyco Group, Inc.		60		1,453
Casual Male Retail Group, Inc.*		352		1,436
Destination Maternity Corp.*		43		1,416
Movado Group, Inc.*		127		1,382
Landry’s Restaurants, Inc.*		56		1,371
CPI Corp.		52		1,346
Stoneridge, Inc.*		128		1,345
MarineMax, Inc.*		190		1,338
Spartan Motors, Inc.		280		1,299
Morgans Hotel Group Co.*		177		1,296
Lifetime Brands, Inc.*		82		1,238
West Marine, Inc.*		120		1,219
Mac-Gray Corp.		100		1,213
Tuesday Morning Corp.*		250		1,192
Skyline Corp.		57		1,155
SuperMedia, Inc.*		108		1,142
LIN TV Corp. — Class A*		251		1,114
Jamba, Inc.*		506		1,108
Cherokee, Inc.		60		1,094
Martha Stewart Living Omnimedia — Class A*		229		1,085
Systemax, Inc.		88		1,081
Orbitz Worldwide, Inc.*		170		1,071
O’Charleys, Inc.*		147		1,057
Arctic Cat, Inc.*		103		1,056
Audiovox Corp. — Class A*		154		1,053
AH Belo Corp. — Class A*		148		1,046
Ruth’s Hospitality Group, Inc.*		259		1,039
Ballantyne Strong, Inc.*		120		1,038
CSS Industries, Inc.		60		1,037
Lee Enterprises, Inc.*		380		1,018
Bon-Ton Stores, Inc.		100		1,017
Kenneth Cole Productions, Inc. — Class A*		60		1,000

			MARKET
	SHARES		VALUE
Hooker Furniture Corp.		86	$	1,000
Sealy Corp.*		402		981
Fisher Communications, Inc.*		56		976
Isle of Capri Casinos, Inc.*		135		967
McCormick & Schmick’s Seafood Restaurants, Inc.*		122		949
REX American Resources Corp.*		64		927
Playboy Enterprises, Inc. — Class B*		180		925
Build-A-Bear Workshop, Inc. — Class A*		151		914
Midas, Inc.*		120		913
Kid Brands, Inc.*		106		912
US Auto Parts Network, Inc.*		110		902
Gaiam, Inc. — Class A		130		870
Steinway Musical Instruments, Inc.*		50		861
Multimedia Games, Inc.*		230		851
Entravision Communications Corp. — Class A*		416		828
Gray Television, Inc.*		410		824
Carmike Cinemas, Inc.*		90		785
Monarch Casino & Resort, Inc.*		70		785
Red Lion Hotels Corp.*		105		781
Joe’s Jeans, Inc.*		360		760
Delta Apparel, Inc.*		50		750
Vitacost.com, Inc.*		120		721
RG Barry Corp.		70		720
Summer Infant, Inc.*		90		704
Culp, Inc.*		70		686
Winmark Corp.		20		669
Caribou Coffee Company, Inc.*		64		666
Brookfield Homes Corp.*		80		655
LodgeNet Interactive Corp.*		219		613
Einstein Noah Restaurant Group, Inc.*		55		583
Outdoor Channel Holdings, Inc.*		100		553
Lacrosse Footwear, Inc.		40		552
ReachLocal, Inc.*		40		551
Carrols Restaurant Group, Inc.*		103		546
New York & Company, Inc.*		210		540
PRIMEDIA, Inc.		140		532
Johnson Outdoors, Inc. — Class A*		40		513
Learning Tree International, Inc.		50		506
Cumulus Media, Inc. — Class A*		180		506
Borders Group, Inc.*		420		500
Marine Products Corp.*		80		491
Nexstar Broadcasting Group, Inc. — Class A*		93		479
National American University Holdings, Inc.		70		470
Cambium Learning Group, Inc.*		140		448
Conn’s, Inc.*		95		442
Westwood One, Inc.*		50		424
1-800-Flowers.com, Inc. — Class A*		222		420
Shiloh Industries, Inc.*		43		416
American Apparel, Inc.*		285		351
Books-A-Million, Inc. — Class A		57		342

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    83

5

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Bluegreen Corp.*		120	$	335
Princeton Review, Inc.*		158		322
Crown Media Holdings, Inc. — Class A*		112		268
Empire Resorts, Inc.*		220		244
Radio One, Inc. — Class D*		270		238
Beasley Broadcasting Group, Inc. — Class A*		40		212
Value Line, Inc.		10		139
Total Consumer Discretionary				1,217,034
HEALTH CARE - 5.4%
Salix Pharmaceuticals Ltd.*		476		18,907
AMERIGROUP Corp.*		429		18,220
STERIS Corp.		500		16,610
Psychiatric Solutions, Inc.*		480		16,104
Medicis Pharmaceutical Corp. — Class A		520		15,418
Healthsouth Corp.*		796		15,283
Owens & Minor, Inc.		530		15,084
Onyx Pharmaceuticals, Inc.*		530		13,981
Dionex Corp.*		160		13,830
HMS Holdings Corp.*		228		13,438
Savient Pharmaceuticals, Inc.*		580		13,265
Magellan Health Services, Inc.*		279		13,180
Haemonetics Corp.*		220		12,877
American Medical Systems Holdings, Inc.*		646		12,649
Healthspring, Inc.*		488		12,610
Incyte Corporation Ltd.*		762		12,184
Masimo Corp.		439		11,989
Immucor, Inc.*		597		11,839
Nektar Therapeutics*		796		11,757
Alkermes, Inc.*		800		11,720
Catalyst Health Solutions, Inc.*		329		11,584
NuVasive, Inc.*		329		11,561
Cubist Pharmaceuticals, Inc.*		492		11,508
Chemed Corp.		200		11,394
Parexel International Corp.*		492		11,380
Volcano Corp.*		431		11,197
Seattle Genetics, Inc.*		710		11,026
Quality Systems, Inc.		162		10,742
Theravance, Inc.*		530		10,653
Acorda Therapeutics, Inc.*		322		10,632
WellCare Health Plans, Inc.*		360		10,426
Impax Laboratories, Inc.*		526		10,415
PSS World Medical, Inc.*		480		10,262
Centene Corp.*		430		10,144
Sirona Dental Systems, Inc.*		277		9,983
Viropharma, Inc.*		662		9,870
Align Technology, Inc.*		500		9,790
West Pharmaceutical Services, Inc.		279		9,572
Cepheid, Inc.*		508		9,505
athenahealth, Inc.*		283		9,345
Auxilium Pharmaceuticals, Inc.*		355		8,797
Bruker Corp.*		622		8,727

			MARKET
	SHARES		VALUE
Par Pharmaceutical Companies, Inc.*		292	$	8,491
MedAssets, Inc.*		363		7,638
Meridian Bioscience, Inc.		341		7,461
Pharmasset, Inc.*		246		7,257
Integra LifeSciences Holdings Corp.*		177		6,984
Neogen Corp.*		204		6,905
Isis Pharmaceuticals, Inc.*		800		6,720
Invacare Corp.		250		6,628
DexCom, Inc.*		492		6,504
Medicines Co.*		448		6,362
Martek Biosciences Corp.*		279		6,314
Arthrocare Corp.*		229		6,224
Cyberonics, Inc.*		232		6,190
Amedisys, Inc.*		250		5,950
Zoll Medical Corp.*		180		5,809
MWI Veterinary Supply, Inc.*		98		5,657
CONMED Corporation*		246		5,513
Gentiva Health Services, Inc.*		252		5,506
PDL BioPharma, Inc.		1,014		5,334
InterMune, Inc.*		386		5,257
HeartWare International, Inc.*		76		5,226
Luminex Corp.*		320		5,120
Momenta Pharmaceuticals, Inc.*		336		5,057
Analogic Corp.		108		4,847
Insulet Corp.*		342		4,836
Landauer, Inc.		76		4,760
Micromet, Inc.*		705		4,738
Wright Medical Group, Inc.*		328		4,726
Enzon Pharmaceuticals, Inc.*		419		4,714
Celera Corp.*		696		4,691
Orthofix International N.V.*		149		4,682
Amsurg Corp. — Class A*		267		4,667
Vivus, Inc.*		696		4,656
Halozyme Therapeutics, Inc.*		602		4,641
Greatbatch, Inc.*		200		4,638
Geron Corp.*		826		4,568
Questcor Pharmaceuticals, Inc.*		460		4,563
Targacept, Inc.*		203		4,535
Kindred Healthcare, Inc.*		340		4,427
Sequenom, Inc.*		628		4,402
Abaxis, Inc.*		190		4,389
Zymogenetics, Inc.*		449		4,378
RehabCare Group, Inc.*		214		4,327
Bio-Reference Labs, Inc.*		200		4,172
Universal American Corp.		279		4,115
NxStage Medical, Inc.*		211		4,030
Medivation, Inc.*		300		3,900
SonoSite, Inc.*		116		3,887
Sun Healthcare Group, Inc.*		456		3,862
Merit Medical Systems, Inc.*		242		3,845
Rigel Pharmaceuticals, Inc.*		454		3,818
IPC The Hospitalist Company, Inc.*		138		3,770
MannKind Corp.*		557		3,765
Alnylam Pharmaceuticals, Inc.*		305		3,745

84    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

6

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Conceptus, Inc.*		272	$	3,740
ICU Medical, Inc.*		100		3,729
Immunogen, Inc.*		584		3,662
Exelixis, Inc.*		930		3,646
Omnicell, Inc.*		278		3,636
Ariad Pharmaceuticals, Inc.*		950		3,629
Natus Medical, Inc.*		249		3,628
Air Methods Corp.*		86		3,576
Molina Healthcare, Inc.*		130		3,509
Healthways, Inc.*		299		3,480
Computer Programs & Systems, Inc.		80		3,406
NPS Pharmaceuticals, Inc.*		491		3,358
Select Medical Holdings Corp.*		426		3,280
Accelrys, Inc.*		465		3,236
Angiodynamics, Inc.*		210		3,200
Hanger Orthopedic Group, Inc.*		220		3,199
Allos Therapeutics, Inc.*		677		3,195
National Healthcare Corp.		85		3,151
Atrion Corp.		20		3,150
AMAG Pharmaceuticals, Inc.*		182		3,132
eResearchTechnology, Inc.*		409		3,059
Medidata Solutions, Inc.*		157		3,014
Inspire Pharmaceuticals, Inc.*		506		3,011
Syneron Medical Ltd.*		299		2,966
Symmetry Medical, Inc.*		306		2,950
LHC Group, Inc.*		126		2,922
Res-Care, Inc.*		220		2,919
Emeritus Corp.*		170		2,900
ABIOMED, Inc.*		270		2,865
Triple-S Management Corp. — Class B*		170		2,865
Ardea Biosciences, Inc.*		122		2,806
Accuray, Inc.*		445		2,768
Affymetrix, Inc.*		606		2,763
Metabolix, Inc.*		217		2,730
Lexicon Pharmaceuticals, Inc.*		1,695		2,712
Emergent Biosolutions, Inc.*		157		2,710
Delcath Systems, Inc.*		375		2,708
Pharmacyclics, Inc.*		330		2,660
Neurocrine Biosciences, Inc.*		435		2,636
Optimer Pharmaceuticals, Inc.*		279		2,558
PharMerica Corp.*		260		2,478
Unilife Corp.*		410		2,472
Corvel Corp.*		57		2,420
Assisted Living Concepts, Inc. — Class A*		78		2,374
Almost Family, Inc.*		80		2,370
SIGA Technologies, Inc.*		267		2,259
Genoptix, Inc.*		155		2,201
Exact Sciences Corp.*		300		2,172
Ensign Group, Inc.		121		2,172
Kensey Nash Corp.*		75		2,167
MAKO Surgical Corp.*		221		2,117
Keryx Biopharmaceuticals, Inc.*		440		2,116
Depomed, Inc.*		450		2,016

			MARKET
	SHARES		VALUE
MAP Pharmaceuticals, Inc.*		131	$	2,004
Dyax Corp.*		843		1,998
AVANIR Pharmaceuticals, Inc. — Class A*		618		1,971
Quidel Corp.*		177		1,945
Cross Country Healthcare, Inc.*		265		1,905
Endologix, Inc.*		416		1,897
Providence Service Corp.*		114		1,868
Akorn, Inc.*		462		1,866
Durect Corp.*		730		1,854
Arqule, Inc.*		358		1,844
Pain Therapeutics, Inc.*		298		1,842
Nabi Biopharmaceuticals*		380		1,824
Immunomedics, Inc.*		562		1,810
Chindex International, Inc.*		119		1,798
SurModics, Inc.*		150		1,788
Cantel Medical Corp.		110		1,782
Vascular Solutions, Inc.*		155		1,779
Medcath Corp.*		176		1,772
Health Grades, Inc.*		216		1,769
BMP Sunstone Corp.*		232		1,763
Spectrum Pharmaceuticals, Inc.*		421		1,756
AVI BioPharma, Inc.*		952		1,752
Cadence Pharmaceuticals, Inc.*		206		1,720
BioMimetic Therapeutics, Inc.*		150		1,710
BioScrip, Inc.*		331		1,708
Clinical Data, Inc.*		100		1,687
Hi-Tech Pharmacal Company, Inc.*		83		1,680
Team Health Holdings, Inc.*		130		1,678
Novavax, Inc.*		764		1,673
Opko Health, Inc.*		746		1,671
Genomic Health, Inc.*		125		1,670
AGA Medical Holdings, Inc.*		119		1,661
American Dental Partners, Inc.*		137		1,652
Cytori Therapeutics, Inc.*		336		1,643
Sunrise Senior Living, Inc.*		478		1,640
XenoPort, Inc.*		230		1,635
Ironwood Pharmaceuticals, Inc. — Class A*		160		1,629
Pozen, Inc.*		230		1,628
Palomar Medical Technologies, Inc.*		157		1,622
Staar Surgical Co.*		294		1,591
Ligand Pharmaceuticals, Inc. — Class B*		1,006		1,589
Vital Images, Inc.*		120		1,588
OraSure Technologies, Inc.*		390		1,580
Maxygen, Inc.*		272		1,575
Clarient, Inc.*		465		1,572
Orexigen Therapeutics, Inc.*		265		1,571
ZIOPHARM Oncology, Inc.*		416		1,560
Vanda Pharmaceuticals, Inc.*		230		1,536
Obagi Medical Products, Inc.*		146		1,533
CryoLife, Inc.*		250		1,518
Caliper Life Sciences, Inc.*		380		1,516
Spectranetics Corp.*		278		1,507
US Physical Therapy, Inc.*		90		1,505

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    85

7

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Arena Pharmaceuticals, Inc.*		941	$	1,477
Eurand N.V.*		150		1,476
TomoTherapy, Inc.*		414		1,457
Array Biopharma, Inc.*		446		1,441
AMN Healthcare Services, Inc.*		270		1,388
Chelsea Therapeutics International, Ltd.*		270		1,382
Young Innovations, Inc.		48		1,373
MELA Sciences, Inc.*		210		1,369
Five Star Quality Care, Inc.*		270		1,364
Rural*		160		1,362
Santarus, Inc.*		450		1,355
Synovis Life Technologies, Inc.*		90		1,346
IRIS International, Inc.*		140		1,344
Jazz Pharmaceuticals, Inc.*		123		1,320
Metropolitan Health Networks, Inc.*		347		1,319
Sangamo Biosciences, Inc.*		376		1,290
Albany Molecular Research, Inc.*		202		1,289
Cerus Corp.*		330		1,267
Orthovita, Inc.*		558		1,267
America Service Group, Inc.		85		1,265
Progenics Pharmaceuticals, Inc.*		248		1,252
RTI Biologics, Inc.*		474		1,247
Merge Healthcare, Inc.*		429		1,244
Exactech, Inc.*		76		1,240
Transcend Services, Inc.*		80		1,220
Cypress Bioscience, Inc.*		316		1,217
Capital Senior Living Corp.*		227		1,210
Omeros Corp.*		162		1,181
Alexza Pharmaceuticals, Inc.*		370		1,173
BioCryst Pharmaceuticals, Inc.*		237		1,171
Accretive Health, Inc.*		105		1,137
Dynavax Technologies Corp.*		610		1,116
Kendle International, Inc.*		119		1,109
Osiris Therapeutics, Inc.*		151		1,099
Celldex Therapeutics, Inc.*		270		1,080
Vical, Inc.*		477		1,064
Enzo Biochem, Inc.*		279		1,060
Continucare Corp.*		250		1,050
Medical Action Industries, Inc.*		116		1,050
Alliance HealthCare Services, Inc.*		229		1,049
Cambrex Corp.*		246		1,046
Stereotaxis, Inc.*		250		1,035
Cytokinetics, Inc.*		390		1,030
Affymax, Inc.*		172		1,023
SuperGen, Inc.*		482		1,007
Biosante Pharmaceuticals, Inc.*		595		1,000
Solta Medical, Inc.*		496		992
Neuralstem, Inc.*		390		983
Somaxon Pharmaceuticals, Inc.*		252		980
Cutera, Inc.*		120		972
Rochester Medical Corp.*		88		960
Allied Healthcare International, Inc.*		381		953
Idenix Pharmaceuticals, Inc.*		306		949
Alphatec Holdings, Inc.*		434		924

			MARKET
	SHARES		VALUE
AVEO Pharmaceuticals, Inc.*		82	$	913
CardioNet, Inc.*		200		902
Curis, Inc.*		655		897
LCA-Vision, Inc.*		161		897
Corcept Therapeutics, Inc.*		228		887
Antares Pharma, Inc.*		600		870
Biotime, Inc.*		180		855
StemCells, Inc.*		1,024		850
Inovio Pharmaceuticals, Inc.*		672		840
Sciclone Pharmaceuticals, Inc.*		317		837
MedQuist, Inc.*		95		832
Furiex Pharmaceuticals, Inc.*		72		812
Biospecifics Technologies Corp.*		30		808
Cynosure, Inc. — Class A*		77		786
Inhibitex, Inc.*		430		774
Synta Pharmaceuticals Corp.*		191		762
Biodel, Inc.*		139		737
Nanosphere, Inc.*		145		729
Zalicus, Inc.*		560		728
CytRx Corp.*		926		694
Pure Bioscience*		298		688
Prospect Medical Holdings, Inc.*		80		680
Peregrine Pharmaceuticals, Inc.*		461		668
Infinity Pharmaceuticals, Inc.*		120		661
Skilled Healthcare Group, Inc. — Class A*		166		652
DynaVox, Inc. — Class A*		80		650
NeurogesX, Inc.*		89		615
Aoxing Pharmaceutical Company, Inc.*		200		612
PDI, Inc.*		70		612
Cumberland Pharmaceuticals, Inc.*		100		581
Nymox Pharmaceutical Corp.*		147		525
National Research Corp.		20		522
Cornerstone Therapeutics, Inc.*		73		515
Hansen Medical, Inc.*		356		509
Codexis, Inc.*		50		480
Neostem, Inc.*		228		463
Alimera Sciences, Inc.*		46		440
Lannett Company, Inc.*		95		435
Caraco Pharmaceutical
Laboratories Ltd.*		66		355
Transcept Pharmaceuticals, Inc.*		50		349
Sucampo Pharmaceuticals, Inc. — Class A*		86		323
Anthera Pharmaceuticals, Inc.*		50		210
Acura Pharmaceuticals, Inc.*		79		197
AspenBio Pharma, Inc.*		311		159
Total Health Care				1,125,977
ENERGY - 2.3%
Dril-Quip, Inc.*		305		18,944
Brigham Exploration Co.*		988		18,525
Bill Barrett Corp.*		390		14,040
Berry Petroleum Co. — Class A		440		13,961
Complete Production Services, Inc.*		665		13,599

86    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
World Fuel Services Corp.		500	$	13,005
CARBO Ceramics, Inc.		160		12,960
McMoRan Exploration Co.*		702		12,081
Bristow Group, Inc.*		310		11,185
Lufkin Industries, Inc.		248		10,887
Nordic American Tanker Shipping		402		10,758
Rosetta Resources, Inc.*		452		10,617
Key Energy Services, Inc.*		1,078		10,252
Helix Energy Solutions Group, Inc.*		896		9,981
Energy XXI Bermuda Ltd.*		426		9,845
Swift Energy Co.*		321		9,014
Patriot Coal Corp.*		670		7,645
Overseas Shipholding Group, Inc.		218		7,482
Ship Finance International Ltd.		380		7,383
Tetra Technologies, Inc.*		646		6,589
Carrizo Oil & Gas, Inc.*		268		6,416
Newpark Resources, Inc.*		758		6,367
Northern Oil and Gas, Inc.*		370		6,268
Penn Virginia Corp.		386		6,191
International Coal Group, Inc.*		1,110		5,905
Gulfmark Offshore, Inc. — Class A*		186		5,714
ION Geophysical Corp.*		1,086		5,582
Stone Energy Corp.*		369		5,435
RPC, Inc.		255		5,396
ATP Oil & Gas Corp.*		383		5,228
USEC, Inc.*		982		5,097
Contango Oil & Gas Co.*		100		5,016
Cloud Peak Energy, Inc.*		270		4,928
Clean Energy Fuels Corp.*		344		4,888
Global Industries Ltd.*		862		4,715
Petroleum Development Corp.*		160		4,416
Cal Dive International, Inc.*		793		4,338
Parker Drilling Co.*		990		4,307
Kodiak Oil & Gas Corp.*		1,240		4,204
James River Coal Co.*		232		4,067
Hornbeck Offshore Services, Inc.*		200		3,898
Golar LNG Ltd.		300		3,756
TransAtlantic Petroleum Ltd.*		1,256		3,718
Willbros Group, Inc.*		399		3,659
Resolute Energy Corp.*		330		3,650
Rex Energy Corp.*		283		3,622
American Oil & Gas, Inc.*		426		3,451
Venoco, Inc.*		165		3,239
Gulfport Energy Corp.*		234		3,239
BPZ Resources, Inc.*		826		3,164
Tesco Corp.*		260		3,128
Goodrich Petroleum Corp.*		210		3,060
W&T Offshore, Inc.		287		3,042
Teekay Tankers Ltd. — Class A		230		2,992
Pioneer Drilling Co.*		458		2,922
Harvest Natural Resources, Inc.*		279		2,907
Energy Partners Ltd.*		240		2,882
T-3 Energy Services, Inc.*		110		2,877
Petroquest Energy, Inc.*		461		2,807

			MARKET
	SHARES		VALUE
Apco Oil and Gas International, Inc.		80	$	2,769
Knightsbridge Tankers Ltd.		144		2,722
Crosstex Energy, Inc.*		336		2,654
Hercules Offshore, Inc.*		974		2,581
General Maritime Corp.		518		2,543
Vaalco Energy, Inc.*		429		2,462
Warren Resources, Inc.*		606		2,406
Clayton Williams Energy, Inc.*		46		2,327
Western Refining, Inc.*		435		2,279
CVR Energy, Inc.*		262		2,162
Gulf Island Fabrication, Inc.		116		2,111
Vantage Drilling Co.*		1,268		2,029
PHI, Inc.*		123		1,990
Matrix Service Co.*		226		1,978
OYO Geospace Corp.*		34		1,968
Dawson Geophysical Co.*		72		1,919
Georesources, Inc.*		114		1,813
Rentech, Inc.*		1,836		1,810
Magnum Hunter Resources Corp.*		436		1,805
DHT Holdings, Inc.		416		1,718
Uranium Energy Corp.*		523		1,715
Basic Energy Services, Inc.*		200		1,704
Abraxas Petroleum Corp.*		580		1,647
Green Plains Renewable Energy, Inc.*		131		1,586
Panhandle Oil and Gas, Inc. — Class A		64		1,580
Endeavour International Corp.*		1,200		1,548
FX Energy, Inc.*		366		1,515
Gastar Exploration Ltd.*		376		1,512
Houston American Energy Corp.		148		1,480
Natural Gas Services Group, Inc.*		98		1,447
Allis-Chalmers Energy, Inc.*		308		1,284
CAMAC Energy, Inc.*		400		1,276
GMX Resources, Inc.*		260		1,264
Delta Petroleum Corp.*		1,585		1,247
Scorpio Tankers, Inc.*		110		1,242
Callon Petroleum Co.*		249		1,233
L&L Energy, Inc.*		152		1,219
Cheniere Energy, Inc.*		482		1,215
Approach Resources, Inc.*		108		1,207
Syntroleum Corp.*		605		1,131
Isramco, Inc.*		15		903
Delek US Holdings, Inc.		122		874
Miller Petroleum, Inc.*		148		798
Seahawk Drilling, Inc.*		93		787
Evolution Petroleum Corp.*		122		733
RAM Energy Resources, Inc.*		458		714
Union Drilling, Inc.*		123		551
Global Geophysical Services, Inc.*		60		437
Hallador Energy Co.		32		372
Alon USA Energy, Inc.		60		324
Golar LNG Energy, Ltd.*		43		64
Total Energy				473,899

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    87

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
MATERIALS - 2.2%
WR Grace & Co.*		622	$	17,379
Allied Nevada Gold Corp.*		632		16,748
Solutia, Inc.*		1,032		16,533
Rock-Tenn Co. — Class A		330		16,437
Coeur d’Alene Mines Corp.*		760		15,139
Silgan Holdings, Inc.		452		14,328
Rockwood Holdings, Inc.*		450		14,162
Olin Corp.		682		13,749
Hecla Mining Co.*		2,139		13,518
Thompson Creek Metals Company, Inc.*		1,200		12,936
Sensient Technologies Corp.		415		12,653
Golden Star Resources Ltd.*		2,206		10,898
NewMarket Corp.		91		10,345
Minerals Technologies, Inc.		162		9,545
PolyOne Corp.*		788		9,527
Ferro Corp.*		732		9,435
Schweitzer-Mauduit International, Inc.		155		9,038
HB Fuller Co.		416		8,266
Louisiana-Pacific Corp.*		1,082		8,191
Worthington Industries, Inc.		531		7,981
RTI International Metals, Inc.*		260		7,961
Clearwater Paper Corp.*		104		7,912
OM Group, Inc.*		261		7,861
Balchem Corp.		249		7,684
Globe Specialty Metals, Inc.		522		7,329
Century Aluminum Co.*		552		7,270
Arch Chemicals, Inc.		203		7,123
Calgon Carbon Corp.*		483		7,004
Stillwater Mining Co.*		378		6,366
Innophos Holdings, Inc.		179		5,925
Kaiser Aluminum Corp.		130		5,563
Texas Industries, Inc.		176		5,548
A. Schulman, Inc.		270		5,441
STR Holdings, Inc.*		247		5,320
AMCOL International Corp.		203		5,317
Buckeye Technologies, Inc.		330		4,854
PH Glatfelter Co.		389		4,730
Koppers Holdings, Inc.		176		4,729
Westlake Chemical Corp.		158		4,729
Brush Engineered Materials, Inc.*		166		4,721
Jaguar Mining, Inc.*		720		4,680
Georgia Gulf Corp.*		280		4,575
Deltic Timber Corp.		93		4,166
Stepan Co.		70		4,138
KapStone Paper and Packaging Corp.*		322		3,909
Boise, Inc.*		594		3,855
US Gold Corp.*		765		3,802
Horsehead Holding Corp.*		376		3,711
Haynes International, Inc.		103		3,597
Wausau Paper Corp.*		430		3,565
Graphic Packaging Holding Co.*		950		3,173
Zep, Inc.		180		3,139

			MARKET
	SHARES		VALUE
Quaker Chemical Corp.		87	$	2,833
Omnova Solutions, Inc.*		378		2,718
LSB Industries, Inc.*		146		2,711
Myers Industries, Inc.		301		2,586
Hawkins, Inc.		70		2,479
Capital Gold Corp.*		510		2,463
Kraton Performance Polymers, Inc.*		90		2,444
Zoltek Companies, Inc.*		232		2,255
Spartech Corp.*		267		2,192
General Moly, Inc.*		550		2,013
Headwaters, Inc.*		529		1,904
AM Castle & Co.*		140		1,855
Neenah Paper, Inc.		121		1,839
Olympic Steel, Inc.		80		1,839
Graham Packaging Company, Inc.*		146		1,726
TPC Group, Inc.*		70		1,667
Landec Corp.*		230		1,428
Universal Stainless & Alloy*		56		1,375
Metals USA Holdings Corp.*		104		1,350
Senomyx, Inc.*		326		1,297
AEP Industries, Inc.*		50		1,181
American Vanguard Corp.		175		1,082
US Energy Corp.*		232		1,053
United States Lime & Minerals, Inc.*		22		851
Noranda Aluminum Holding Corp.*		103		847
KMG Chemicals, Inc.		50		705
NL Industries, Inc.		60		545
Verso Paper Corp.*		123		354
Total Materials				464,097
UTILITIES - 1.4%
Nicor, Inc.		384		17,595
Piedmont Natural Gas Co., Inc.		600		17,400
WGL Holdings, Inc.		426		16,094
Cleco Corp.		519		15,373
IDACORP, Inc.		410		14,727
New Jersey Resources Corp.		350		13,727
Portland General Electric Co.		644		13,060
Southwest Gas Corp.		387		12,999
South Jersey Industries, Inc.		248		12,269
Northwest Natural Gas Co.		230		10,914
Unisource Energy Corp.		310		10,363
Black Hills Corp.		330		10,296
Allete, Inc.		275		10,018
Avista Corp.		466		9,730
NorthWestern Corp.		310		8,835
El Paso Electric Co.*		366		8,704
PNM Resources, Inc.		732		8,338
MGE Energy, Inc.		200		7,918
UIL Holdings Corp.		258		7,265
Empire District Electric Co.		337		6,791
Laclede Group, Inc.		190		6,540
Otter Tail Corp.		310		6,321
CH Energy Group, Inc.		140		6,182

88    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
California Water Service Group		160	$	5,912
American States Water Co.		165		5,904
Dynegy, Inc. — Class A*		876		4,266
Chesapeake Utilities Corp.		77		2,789
SJW Corp.		110		2,709
Middlesex Water Co.		132		2,223
Central Vermont Public Service Corp.		105		2,118
Unitil Corp.		92		2,019
Connecticut Water Service, Inc.		73		1,748
York Water Co.		106		1,699
Consolidated Water Company Ltd.		120		1,138
Cadiz, Inc.*		103		1,057
Artesian Resources Corp. — Class A		47		896
American DG Energy, Inc.*		162		483
Total Utilities				286,420
CONSUMER STAPLES - 1.3%
Casey’s General Stores, Inc.		442		18,453
TreeHouse Foods, Inc.*		298		13,738
Ruddick Corp.		374		12,970
United Natural Foods, Inc.*		373		12,361
Nu Skin Enterprises, Inc. — Class A		425		12,240
Sanderson Farms, Inc.		202		8,745
Hain Celestial Group, Inc.*		346		8,297
Universal Corp.		200		8,018
Lancaster Colony Corp.		162		7,695
Fresh Del Monte Produce, Inc.*		349		7,573
Diamond Foods, Inc.		178		7,296
Vector Group Ltd.		389		7,274
Darling International, Inc.*		706		6,015
Andersons, Inc.		147		5,571
WD-40 Co.		140		5,323
Central Garden and Pet Co. — Class A*		490		5,076
J&J Snack Foods Corp.		120		5,032
Chiquita Brands International, Inc.*		380		5,031
Tootsie Roll Industries, Inc.		200		4,976
Pantry, Inc.*		203		4,894
Nash Finch Co.		114		4,850
Lance, Inc.		220		4,686
Boston Beer Company, Inc. — Class A*		68		4,547
Rite Aid Corp.*		4,769		4,497
B&G Foods, Inc. — Class A		400		4,368
Elizabeth Arden, Inc.*		206		4,118
Pricesmart, Inc.		140		4,078
Spectrum Brands Holdings, Inc.*		150		4,077
Prestige Brands Holdings, Inc.*		357		3,531
Weis Markets, Inc.		90		3,522
Cal-Maine Foods, Inc.		117		3,391
Winn-Dixie Stores, Inc.*		460		3,280
Medifast, Inc.*		120		3,256
Alliance One International, Inc.*		760		3,154

			MARKET
	SHARES		VALUE
Heckmann Corp.*		746	$	2,909
Spartan Stores, Inc.		198		2,871
Dole Food Company, Inc.*		306		2,800
Pilgrim’s Pride Corp.*		412		2,315
Coca-Cola Bottling Company Consolidated		41		2,170
Inter Parfums, Inc.		117		2,058
Smart Balance, Inc.*		530		2,056
USANA Health Sciences, Inc.*		50		2,018
Calavo Growers, Inc.		90		1,951
Seneca Foods Corp. — Class A*		73		1,912
Synutra International, Inc.*		163		1,883
Ingles Markets, Inc. — Class A		106		1,761
Star Scientific, Inc.*		821		1,724
Limoneira Co.		80		1,611
Imperial Sugar Co.		101		1,321
Village Super Market, Inc. — Class A		47		1,313
Nutraceutical International Corp.*		82		1,287
National Beverage Corp.		90		1,260
Arden Group, Inc. — Class A		15		1,237
Revlon, Inc. — Class A*		93		1,174
Great Atlantic & Pacific Tea Co.*		280		1,109
Farmer Bros Co.		60		960
John B. Sanfilippo & Son, Inc.*		70		924
Cellu Tissue Holdings, Inc.*		76		907
Susser Holdings Corp.*		60		840
Oil-Dri Corporation of America		39		839
Female Health Co.		155		798
Schiff Nutrition International, Inc.		96		787
MGP Ingredients, Inc.		90		707
Alico, Inc.		29		674
Nature’s Sunshine Products, Inc.*		60		536
Griffin Land & Nurseries, Inc.		20		529
Harbinger Group, Inc.*		80		444
Lifeway Foods, Inc.*		38		400
Bridgford Foods Corp.		20		257
Total Consumer Staples				270,275
TELECOMMUNICATION SERVICES - 0.4%
Syniverse Holdings, Inc.*		596		13,511
AboveNet, Inc.*		199		10,366
Cincinnati Bell, Inc.*		1,716		4,582
PAETEC Holding Corp.*		1,068		4,389
NTELOS Holdings Corp.		250		4,230
General Communication, Inc. — Class A*		405		4,038
Atlantic Tele-Network, Inc.		80		3,939
Alaska Communications Systems Group, Inc.		380		3,857
Consolidated Communications Holdings, Inc.		206		3,846
Shenandoah Telecommunications Co.		200		3,634
Premiere Global Services, Inc.*		512		3,625

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    89

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Cogent Communications Group, Inc.*		380	$	3,599
Neutral Tandem, Inc.*		283		3,382
Global Crossing Ltd.*		261		3,356
USA Mobility, Inc.		190		3,046
Cbeyond, Inc.*		234		3,002
Iridium Communications, Inc.*		300		2,562
Vonage Holdings Corp.*		900		2,295
IDT Corp. — Class B*		120		2,135
FiberTower Corp.*		416		1,764
ICO Global Communications Holdings Ltd.*		796		1,305
Globalstar, Inc.*		600		1,044
Total Telecommunication Services				87,507
Total Common Stocks (Cost $5,587,804)				8,685,355
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		250		12
Total Warrant (Cost $–)				12
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 54.5%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	3,212,008		3,212,008
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		3,208,892		3,208,892
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		3,208,433		3,208,433
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		1,325,799		1,325,799

	FACE		MARKET
	AMOUNT		VALUE
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10	$	331,450	$	331,450
Total Repurchase Agreements (Cost $11,286,582)				11,286,582
Total Investments – 96.5% (Cost $16,874,386)			$	19,971,949
Cash & Other Assets, Less Liabilities – 3.5%				716,783
Total Net Assets – 100.0%			$	20,688,732
			Unrealized
		CONTRACTS	Gain (Loss)
FUTURES CONTRACTS PURCHASED†
December 2010 Russell 2000
Index Mini Futures Contracts (Aggregate Market Value of Contracts $605,430)		9	$	28,505
		UNITS
EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International
October 2010 Russell 2000 Index Swap, Terminating 10/27/103
(Notional Market Value $13,649,118)		20,187	$	166,236
Morgan Stanley Capital Services, Inc.
October 2010 Russell 2000
Index Swap, Terminating 10/26/103
(Notional Market Value $1,550,524)		2,293		18,765
Credit Suisse Capital, LLC
October 2010 Russell 2000
Index Swap, Terminating 10/29/103
(Notional Market Value $6,518,678)		9,641		(13,161	)
(Total Notional Market Value $21,718,320)			$	171,840

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on Russell 2000 Index +/- financing at a variable rate. plc — Public Limited Company

90    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	8,685,367
Repurchase agreement, at value		11,286,582
Total investments		19,971,949
Segregated cash with broker		190,500
Unrealized appreciation on swap agreements		185,001
Receivables:
Securities sold		10,989
Fund shares sold		408,274
Dividends		9,931
Interest		61
Total assets		20,776,705
Liabilities:
Overdraft due to custodian bank		7
Unrealized depreciation on swap agreements		13,161
Payable for:
Variation margin		2,610
Fund shares redeemed		47,082
Management fees		10,813
Custodian fees		396
Transfer agent/maintenance fees		3,004
Distribution and service fees		4,182
Portfolio accounting fees		1,201
Other		5,517
Total liabilities		87,973
Net assets	$	20,688,732
Net assets consist of:
Paid in capital		36,057,384
Accumulated net investment loss		(109,943	)
Accumulated net realized loss on sale of investments		(18,556,617	)
Net unrealized appreciation in value of investments		3,297,908
Net assets		20,688,732
A-Class:
Net assets	$	2,826,315
Capital shares outstanding		114,260
Net asset value per share		$24.74
Maximum offering price per share*		$25.97
C-Class:
Net assets	$	2,017,794
Capital shares outstanding		87,958
Net asset value per share		$22.94
H-Class:
Net assets	$	15,844,623
Capital shares outstanding		641,692
Net asset value per share		$24.69
Investments, at cost	$	5,587,804
Repurchase agreement, at cost		11,286,582
Total cost	$	16,874,386

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $6)	$	64,997
Interest		8,306
Total investment income		73,303
Expenses:
Management fees		90,603
Transfer agent and administrative fees		25,168
Distribution and Service Fees:
A-Class		1,302
C-Class		11,933
H-Class		20,882
Portfolio accounting fees		10,067
Trustees’ fees**		876
Miscellaneous		19,937
Total expenses		180,768
Net investment loss		(107,465	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		44,675
Equity index swaps		(235,149	)
Futures contracts		(1,660,767	)
Net realized loss		(1,851,241	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(982,699	)
Equity index swaps		(957,832	)
Futures contracts		31,340
Net unrealized depreciation		(1,909,191	)
Net loss		(3,760,432	)
Net decrease in net assets resulting from operations	$	(3,867,897	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    91

  RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(107,465	)	$	(208,472	)
Net realized gain (loss) during the period on investments		(1,851,241	)		4,024,925
Net unrealized appreciation (depreciation) during the period on investments		(1,909,191	)		8,612,735
Net increase (decrease) in net assets resulting from operations		(3,867,897	)		12,429,188
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		4,622,603			2,404,655
C-Class		748,857			6,961,907
H-Class		76,853,267			157,669,541
Cost of shares redeemed
A-Class		(2,249,757	)		(2,984,872	)
C-Class		(1,345,574	)		(10,371,550	)
H-Class		(80,759,861	)		(157,200,957	)
Net decrease from capital share transactions		(2,130,465	)		(3,521,276	)
Net increase (decrease) in net assets		(5,998,362	)		8,907,912
Net assets:
Beginning of period		26,687,094			17,779,182
End of period	$	20,688,732		$	26,687,094
Accumulated net investment loss at end of period	$	(109,943	)	$	(2,478	)
Capital share activity:
Shares sold
A-Class		193,921			129,902
C-Class		32,511			408,232
H-Class		3,188,943			7,830,985
Shares redeemed
A-Class		(102,841	)		(154,074	)
C-Class		(62,949	)		(578,420	)
H-Class		(3,472,365	)		(8,012,886	)
Total capital share activity		(222,780	)		(376,261	)

92    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  RUSSELL 2000^® 1.5x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.24			$12.49			$28.62			$37.24			$37.33			$27.54
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.11	)		(.02	)		.29			.10			.04
Net gain (loss) on securities (realized and unrealized)		(.40	)		12.86			(16.11	)		(8.83	)		1.24			9.75
Total from investment operations		(.50	)		12.75			(16.13	)		(8.54	)		1.34			9.79
Less distributions:
Distributions from net investment income		—			—			—			(.08	)		—			—
Distributions from realized gains		—			—			—			—			(1.43	)		—
Total distributions		—			—			—			(.08	)		(1.43	)		—
Net asset value, end of period		$24.74			$25.24			$12.49			$28.62			$37.24			$37.33
Total Returnc		(1.98%	)		102.08%			(56.36%	)		(22.98%	)		3.60%			35.55%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,826			$585			$591			$4,372			$5,976			$6,789
Ratios to average net assets:
Net investment income (loss)		(0.88%	)		(0.59%	)		(0.07%	)		0.81%			0.28%			0.13%
Total expenses		1.70%			1.71%			1.70%			1.67%			1.66%			2.06%
Net expenses		1.70%			1.71%			1.70%			1.67%			1.66%			1.65%
Portfolio turnover rate		128%			109%			288%			227%			179%			441%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$23.50			$11.71			$27.10			$35.51			$35.93			$26.69
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.24	)		(.18	)		.03			(.16	)		(.21	)
Net gain (loss) on securities (realized and unrealized)		(.37	)		12.03			(15.21	)		(8.36	)		1.17			9.45
Total from investment operations		(.56	)		11.79			(15.39	)		(8.33	)		1.01			9.24
Less distributions:
Distributions from net investment income		—			—			—			(.08	)		—			—
Distributions from realized gains		—			—			—			—			(1.43	)		—
Total distributions		—			—			—			(.08	)		(1.43	)		—
Net asset value, end of period		$22.94			$23.50			$11.71			$27.10			$35.51			$35.93
Total Returnc		(2.38%	)		100.68%			(56.79%	)		(23.50%	)		2.81%			34.62%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,018			$2,782			$3,381			$10,873			$19,942			$31,956
Ratios to average net assets:
Net investment income (loss)		(1.68%	)		(1.36%	)		(0.83%	)		0.09%			(0.47%	)		(0.70%	)
Total expenses		2.46%			2.46%			2.45%			2.42%			2.41%			2.81%
Net expenses		2.46%			2.46%			2.45%			2.42%			2.41%			2.40%
Portfolio turnover rate		128%			109%			288%			227%			179%			441%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    93

  RUSSELL 2000^® 1.5x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.21			$12.47			$28.62			$37.22			$37.32			$27.51
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.19	)		(.02	)		.30			.10			.03
Net gain (loss) on securities (realized and unrealized)		(.40	)		12.93			(16.13	)		(8.82	)		1.23			9.78
Total from investment operations		(.52	)		12.74			(16.15	)		(8.52	)		1.33			9.81
Less distributions:
Distributions from net investment income		—			—			—			(.08	)		—			—
Distributions from realized gains		—			—			—			—			(1.43	)		—
Total distributions		—			—			—			(.08	)		(1.43	)		—
Net asset value, end of period		$24.69			$25.21			$12.47			$28.62			$37.22			$37.32
Total Returnc		(2.06%	)		102.17%			(56.43%	)		(22.93%	)		3.57%			35.66%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$15,845			$23,320			$13,807			$13,839			$42,861			$170,698
Ratios to average net assets:
Net investment income (loss)		(0.99%	)		(0.94%	)		(0.07%	)		0.83%			0.27%			0.10%
Total expenses		1.71%			1.71%			1.70%			1.67%			1.66%			2.05%
Net expenses		1.71%			1.71%			1.70%			1.67%			1.66%			1.64%
Portfolio turnover rate		128%			109%			288%			227%			179%			441%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

94    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

RUSSELL 2000^® FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the Russell 2000^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
TIBCO Software, Inc.	0.2	%
Riverbed Technology, Inc.	0.2	%
VeriFone Systems, Inc.	0.1	%
Rackspace Hosting, Inc.	0.1	%
Nordson Corp.	0.1	%
Sotheby’s	0.1	%
Highwoods Properties, Inc.	0.1	%
Salix Pharmaceuticals Ltd.	0.1	%
Warnaco Group, Inc.	0.1	%
Parametric Technology Corp.	0.1	%
Top Ten Total	1.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    95

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 47.3%
FINANCIALS - 9.6%
Highwoods Properties, Inc.		385	$	12,501
MFA Financial, Inc.		1,496		11,414
National Retail Properties, Inc.		454		11,400
Omega Healthcare Investors, Inc.		501		11,247
BioMed Realty Trust, Inc.		610		10,931
Apollo Investment Corp.		1,045		10,690
Entertainment Properties Trust		247		10,665
FirstMerit Corp.		580		10,626
American Capital Ltd.*		1,824		10,597
Home Properties, Inc.		200		10,580
Washington Real Estate Investment Trust		329		10,439
Tanger Factory Outlet Centers		220		10,371
Alterra Capital Holdings Ltd.		520		10,358
MGIC Investment Corp.*		1,078		9,950
ProAssurance Corp.*		170		9,790
CBL & Associates Properties, Inc.		736		9,612
Platinum Underwriters Holdings Ltd.		220		9,574
Kilroy Realty Corp.		288		9,544
SVB Financial Group*		217		9,183
Mid-America Apartment Communities, Inc.		150		8,742
Westamerica Bancorporation		160		8,718
LaSalle Hotel Properties		367		8,584
Signature Bank *		220		8,545
First American Financial Corp.		560		8,366
Stifel Financial Corp.*		180		8,332
Prosperity Bancshares, Inc.		250		8,118
DiamondRock Hospitality Co.*		827		7,848
Healthcare Realty Trust, Inc.		328		7,672
Equity Lifestyle Properties, Inc.		140		7,627
Extra Space Storage, Inc.		470		7,539
Trustmark Corp.		336		7,305
NewAlliance Bancshares, Inc.		570		7,193
Post Properties, Inc.		257		7,175
Potlatch Corp.		207		7,038
Umpqua Holdings Corp.		618		7,008
Iberiabank Corp.		140		6,997
Northwest Bancshares, Inc.		592		6,624
CNO Financial Group, Inc.*		1,188		6,582
Montpelier Re Holdings Ltd.		378		6,547
Delphi Financial Group, Inc. — Class A		260		6,497
Knight Capital Group, Inc. — Class A*		510		6,319
PHH Corp.*		300		6,318
Astoria Financial Corp.		460		6,270
Colonial Properties Trust		384		6,217
Webster Financial Corp.		350		6,146
Medical Properties Trust, Inc.		600		6,084
Redwood Trust, Inc.		420		6,073

			MARKET
	SHARES		VALUE
UMB Financial Corp.		170	$	6,037
Susquehanna Bancshares, Inc.		700		5,908
Argo Group International Holdings Ltd.		170		5,906
Portfolio Recovery Associates, Inc.*		90		5,819
National Health Investors, Inc.		130		5,728
Glacier Bancorp, Inc.		390		5,694
Sovran Self Storage, Inc.		150		5,685
Cash America International, Inc.		160		5,600
Radian Group, Inc.		708		5,537
DuPont Fabros Technology, Inc.		220		5,533
Wintrust Financial Corp.		170		5,510
DCT Industrial Trust, Inc.		1,130		5,413
EastGroup Properties, Inc.		140		5,233
FNB Corp.		607		5,196
United Bankshares, Inc.		208		5,177
First Financial Bancorp		310		5,171
First Financial Bankshares, Inc.		110		5,169
Starwood Property Trust, Inc.		260		5,166
Tower Group, Inc.		220		5,137
RLI Corp.		90		5,096
Hatteras Financial Corp.		177		5,039
Cathay General Bancorp		418		4,970
Old National Bancorp		470		4,935
KBW, Inc.		190		4,864
American Capital Agency Corp.		183		4,862
Hancock Holding Co.		160		4,811
Ezcorp, Inc. — Class A*		240		4,810
Sunstone Hotel Investors, Inc.*		530		4,807
American Campus Communities, Inc.		156		4,749
International Bancshares Corp.		280		4,729
Selective Insurance Group, Inc.		290		4,724
First Midwest Bancorp, Inc.		400		4,612
Franklin Street Properties Corp.		369		4,583
First Cash Financial Services, Inc.*		165		4,579
Anworth Mortgage Asset Corp.		640		4,563
MB Financial, Inc.		280		4,542
PS Business Parks, Inc.		80		4,526
Park National Corp.		70		4,483
Whitney Holding Corp.		520		4,248
National Penn Bancshares, Inc.		678		4,237
NBT Bancorp, Inc.		190		4,193
Acadia Realty Trust		220		4,180
U-Store-It Trust		500		4,175
Capstead Mortgage Corp.		381		4,141
Columbia Banking System, Inc.		210		4,126
Community Bank System, Inc.		177		4,073
Ocwen Financial Corp.*		400		4,056
Provident Financial Services, Inc.		319		3,943
Lexington Realty Trust		520		3,723
Greenlight Capital Re Ltd. — Class A*		148		3,703
Horace Mann Educators Corp.		207		3,680

96    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Employers Holdings, Inc.		230	$	3,627
CVB Financial Corp.		478		3,590
Pennsylvania Real Estate Investment Trust		298		3,534
World Acceptance Corp.*		80		3,533
optionsXpress Holdings, Inc.*		230		3,533
Pico Holdings, Inc.*		117		3,494
Cousins Properties, Inc.		489		3,491
Infinity Property & Casualty Corp.		70		3,414
Investors Real Estate Trust		403		3,377
Inland Real Estate Corp.		399		3,316
Nelnet, Inc. — Class A		144		3,295
Investment Technology Group, Inc.*		230		3,271
Texas Capital Bancshares, Inc.*		188		3,247
Forestar Group, Inc.*		190		3,239
Equity One, Inc.		190		3,207
PrivateBancorp, Inc. — Class A		280		3,189
Strategic Hotels & Resorts, Inc.*		750		3,180
American Equity Investment Life Holding Co.		310		3,174
Brookline Bancorp, Inc.		310		3,094
Sun Communities, Inc.		100		3,070
LTC Properties, Inc.		120		3,062
Hersha Hospitality Trust		590		3,056
Investors Bancorp, Inc.*		258		3,055
PacWest Bancorp		160		3,050
Invesco Mortgage Capital, Inc.		140		3,013
Oritani Financial Corp.		300		2,994
Prospect Capital Corp.		308		2,991
Flagstone Reinsurance Holdings S.A.		280		2,971
First Potomac Realty Trust		197		2,955
Getty Realty Corp.		110		2,951
National Financial Partners Corp.*		230		2,914
Compass Diversified Holdings		176		2,844
PMI Group, Inc.*		768		2,819
Chemical Financial Corp.		130		2,683
Navigators Group, Inc.*		60		2,678
Dollar Financial Corp.*		128		2,671
Primerica, Inc.		130		2,644
Sterling Bancshares, Inc.		490		2,631
Bank of the Ozarks, Inc.		70		2,596
Meadowbrook Insurance Group, Inc.		288		2,583
United Fire & Casualty Co.		120		2,545
Simmons First National Corp. — Class A		90		2,544
Safety Insurance Group, Inc.		60		2,521
MarketAxess Holdings, Inc.		148		2,513
Independent Bank Corp.		110		2,477
City Holding Co.		80		2,454
Walter Investment Management Corp.		140		2,449

			MARKET
	SHARES		VALUE
MCG Capital Corp.		410	$	2,394
Associated Estates Realty Corp.		170		2,377
Home Bancshares, Inc.		116		2,357
Piper Jaffray Cos.*		80		2,330
Evercore Partners, Inc. — Class A		80		2,289
Trustco Bank Corp.		408		2,268
Artio Global Investors, Inc. — Class A		148		2,264
Education Realty Trust, Inc.		310		2,216
S&T Bancorp, Inc.		127		2,212
Enstar Group Ltd.*		30		2,178
Banco Latinoamericano de Comercio Exterior S.A. — Class E		150		2,167
BlackRock Kelso Capital Corp.		188		2,162
Cardtronics, Inc.*		140		2,160
Ramco-Gershenson Properties Trust		200		2,142
Retail Opportunity Investments Corp.		220		2,105
Universal Health Realty Income Trust		60		2,065
Maiden Holdings Ltd.		270		2,055
Duff & Phelps Corp. — Class A		150		2,020
Sandy Spring Bancorp, Inc.		130		2,015
Urstadt Biddle Properties, Inc. — Class A		110		1,989
Hilltop Holdings, Inc.*		207		1,983
TowneBank		132		1,975
Harleysville Group, Inc.		60		1,967
Flushing Financial Corp.		170		1,965
Ashford Hospitality Trust, Inc.*		217		1,964
WesBanco, Inc.		120		1,961
Boston Private Financial Holdings, Inc.		299		1,955
Cohen & Steers, Inc.		90		1,953
Dime Community Bancshares, Inc.		140		1,939
Citizens Republic Bancorp, Inc.*		2,124		1,914
Community Trust Bancorp, Inc.		70		1,896
Hercules Technology Growth Capital, Inc.		187		1,891
AMERISAFE, Inc.*		100		1,878
SCBT Financial Corp.		60		1,871
BGC Partners, Inc. — Class A		310		1,851
FBL Financial Group, Inc. — Class A		70		1,819
Credit Acceptance Corp.*		30		1,817
First Financial Corp.		60		1,770
Cedar Shopping Centers, Inc.		290		1,763
Provident New York Bancorp		210		1,762
FPIC Insurance Group, Inc.*		50		1,754
eHealth, Inc.*		135		1,744
Amtrust Financial Services, Inc.		120		1,742
First Industrial Realty Trust, Inc.*		342		1,734
CapLease, Inc.		310		1,733
Parkway Properties, Inc.		117		1,732
Western Alliance Bancorp*		256		1,715

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    97

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Beneficial Mutual Bancorp, Inc.*		190	$	1,704
MVC Capital, Inc.		130		1,686
Lakeland Financial Corp.		90		1,679
GFI Group, Inc.		359		1,666
Pinnacle Financial Partners, Inc.*		180		1,654
MF Global Holdings Ltd.*		228		1,642
CNA Surety Corp.*		90		1,613
Pennymac Mortgage Investment Trust		90		1,610
Government Properties Income Trust		60		1,602
First Commonwealth Financial Corp.		290		1,580
Danvers Bancorp, Inc.		100		1,533
iStar Financial, Inc.*		500		1,530
StellarOne Corp.		120		1,526
NorthStar Realty Finance Corp.		407		1,522
Tejon Ranch Co.*		70		1,517
Berkshire Hills Bancorp, Inc.		80		1,517
Resource Capital Corp.		238		1,511
Southside Bancshares, Inc.		80		1,511
SY Bancorp, Inc.		60		1,489
Cogdell Spencer, Inc.		230		1,454
Cardinal Financial Corp.		149		1,432
TradeStation Group, Inc.*		217		1,428
TICC Capital Corp.		137		1,418
Nara Bancorp, Inc.*		198		1,398
Oppenheimer Holdings, Inc. — Class A		50		1,398
Univest Corporation of Pennsylvania		80		1,397
1st Source Corp.		80		1,389
Camden National Corp.		40		1,386
PennantPark Investment Corp.		130		1,379
Safeguard Scientifics, Inc.*		110		1,378
Citizens, Inc.*		200		1,378
Glimcher Realty Trust		219		1,347
Washington Trust Bancorp, Inc.		70		1,338
Union First Market Bankshares Corp.		100		1,306
Southwest Bancorp, Inc.		100		1,297
Phoenix Companies, Inc.*		617		1,296
Colony Financial, Inc.		70		1,294
Kite Realty Group Trust		290		1,288
PMA Capital Corp. — Class A*		170		1,282
Arrow Financial Corp.		51		1,279
Suffolk Bancorp		50		1,266
First Busey Corp.		278		1,265
Two Harbors Investment Corp.		140		1,263
Agree Realty Corp.		50		1,263
Encore Capital Group, Inc.*		70		1,261
Saul Centers, Inc.		30		1,259
Westfield Financial, Inc.		160		1,248
Bank Mutual Corp.		240		1,246
American Physicians Capital, Inc.		30		1,244
Gladstone Capital Corp.		110		1,240

			MARKET
	SHARES		VALUE
Winthrop Realty Trust		100	$	1,236
Renasant Corp.		80		1,217
Sterling Bancorp		140		1,217
United Financial Bancorp, Inc.		90		1,216
Ameris Bancorp		130		1,216
Advance America Cash Advance Centers, Inc.		300		1,209
Fifth Street Finance Corp.		107		1,192
Tompkins Financial Corp.		30		1,190
Territorial Bancorp, Inc.		70		1,178
Hudson Valley Holding Corp.		60		1,171
Kennedy-Wilson Holdings, Inc.*		110		1,166
Abington Bancorp, Inc.		110		1,159
GAMCO Investors, Inc. — Class A		30		1,156
Calamos Asset Management, Inc. — Class A		100		1,150
United Community Banks, Inc.*		510		1,142
West Coast Bancorp*		500		1,140
Global Indemnity plc — Class A*		70		1,124
NewStar Financial, Inc.*		150		1,112
Washington Banking Co.		80		1,109
Monmouth Real Estate Investment Corp. — Class A		141		1,103
Home Federal Bancorp, Inc.		90		1,095
First Bancorp		80		1,090
Great Southern Bancorp, Inc.		50		1,088
NGP Capital Resources Co.		120		1,087
International Assets Holding Corp.*		60		1,086
Northfield Bancorp, Inc.		100		1,082
Presidential Life Corp.		110		1,078
Heartland Financial USA, Inc.		70		1,077
Trico Bancshares		70		1,076
SWS Group, Inc.		150		1,076
First Merchants Corp.		140		1,068
State Auto Financial Corp.		70		1,065
First Community Bancshares, Inc.		80		1,032
German American Bancorp, Inc.		60		1,030
Oriental Financial Group, Inc.		77		1,024
Newcastle Investment Corp.*		330		1,023
Stewart Information Services Corp.		90		1,019
Baldwin & Lyons, Inc. — Class B		40		1,018
Westwood Holdings Group, Inc.		30		1,015
SeaBright Holdings, Inc.		120		967
Bank of Marin Bancorp		30		967
Center Financial Corp.*		190		967
Triangle Capital Corp.		60		959
Avatar Holdings, Inc.*		50		954
CoBiz Financial, Inc.		170		945
First Interstate Bancsystem, Inc. — Class A		70		942
Chatham Lodging Trust		50		930
Financial Engines, Inc.*		70		930
HFF, Inc. — Class A*		100		928
Lakeland Bancorp, Inc.		110		927

98    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Eagle Bancorp, Inc.*		80	$	918
BankFinancial Corp.		100		917
Terreno Realty Corp.*		50		911
Virtus Investment Partners, Inc.*		30		908
Alliance Financial Corp.		30		907
Epoch Holding Corp.		70		902
Excel Trust, Inc.		80		902
First Financial Holdings, Inc.		80		891
Financial Institutions, Inc.		50		883
FBR Capital Markets Corp.*		280		879
National Interstate Corp.		40		871
Bryn Mawr Bank Corp.		50		861
OceanFirst Financial Corp.		70		859
Ambac Financial Group, Inc.*		1,546		858
Gladstone Commercial Corp.		50		858
Republic Bancorp, Inc. — Class A		40		845
CreXus Investment Corp.		70		842
MainSource Financial Group, Inc.		110		840
ESSA Bancorp, Inc.		70		829
American Safety Insurance Holdings Ltd.*		50		817
Pacific Continental Corp.		90		815
Bancfirst Corp.		20		809
Gladstone Investment Corp.		120		804
Apollo Commercial Real Estate Finance, Inc.		50		804
Bancorp, Inc.*		120		803
Kayne Anderson Energy Development Co.		50		803
Ames National Corp.		40		798
One Liberty Properties, Inc.		50		796
Donegal Group, Inc. — Class A		60		784
Citizens & Northern Corp.		60		780
LaBranche & Company, Inc.*		200		780
1st United Bancorp, Inc.*		120		772
NYMAGIC, Inc.		30		770
Life Partners Holdings, Inc.		40		761
WSFS Financial Corp.		20		750
Bridge Bancorp, Inc.		30		750
Merchants Bancshares, Inc.		30		748
Harris & Harris Group, Inc.*		175		747
Enterprise Financial Services Corp.		80		744
Diamond Hill Investment Group, Inc.		10		730
Capital City Bank Group, Inc.		60		728
Metro Bancorp, Inc.*		70		727
State Bancorp, Inc.		80		718
Kearny Financial Corp.		80		706
First Mercury Financial Corp.		70		706
Hanmi Financial Corp.*		550		704
Heritage Financial Corp.*		50		700
Arlington Asset Investment Corp. — Class A		30		699
ESB Financial Corp.		50		696
First Marblehead Corp.*		297		695

			MARKET
	SHARES		VALUE
Orrstown Financial Services, Inc.		30	$	695
First Bancorp, Inc.		50		691
Centerstate Banks, Inc.		80		686
Thomas Properties Group, Inc.		190		678
Mission West Properties, Inc.		100		678
OmniAmerican Bancorp, Inc.*		60		676
Gleacher & Company, Inc.*		418		673
Penns Woods Bancorp, Inc.		20		661
Chesapeake Lodging Trust		40		654
Wilshire Bancorp, Inc.		100		654
MPG Office Trust, Inc.*		260		650
ViewPoint Financial Group		70		648
American Physicians Service Group, Inc.		20		647
Solar Capital Ltd.		30		644
EMC Insurance Group, Inc.		30		640
Main Street Capital Corp.		40		636
Cowen Group, Inc. — Class A*		190		625
Kansas City Life Insurance Co.		20		624
Medallion Financial Corp.		80		623
Sanders Morris Harris Group, Inc.		110		623
Peoples Bancorp, Inc.		50		619
Golub Capital BDC, Inc.		40		612
Tower Bancorp, Inc.		30		608
Marlin Business Services Corp.*		50		600
Student Loan Corp.		20		594
RAIT Financial Trust*		357		589
Peapack Gladstone Financial Corp.		50		589
Taylor Capital Group, Inc.*		50		574
Midsouth Bancorp, Inc.		40		566
Bancorp Rhode Island, Inc.		20		559
Penson Worldwide, Inc.*		110		547
FelCor Lodging Trust, Inc.*		118		543
Farmer Mac — Class C		50		541
Dynex Capital, Inc.		50		539
UMH Properties, Inc.		50		537
Home Bancorp, Inc.*		40		535
Virginia Commerce Bancorp, Inc.*		110		535
Meridian Interstate Bancorp, Inc.*		50		527
Hallmark Financial Services*		60		524
National Bankshares, Inc.		20		516
West Bancorporation, Inc.*		80		504
Ladenburg Thalmann Financial Services, Inc.*		490		500
Sierra Bancorp		40		494
JMP Group, Inc.		80		488
Century Bancorp, Inc. — Class A		20		478
THL Credit, Inc.		40		471
Rockville Financial, Inc.		40		460
Flagstar Bancorp, Inc.*		250		455
MidWestOne Financial Group, Inc.		30		440
American National Bankshares, Inc.		20		439
Clifton Savings Bancorp, Inc.		50		430
Asset Acceptance Capital Corp.*		80		430
Roma Financial Corp.		40		421

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    99

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Green Bankshares, Inc.*		60	$	407
Universal Insurance Holdings, Inc.		90		404
Cypress Sharpridge Investments, Inc.		30		400
First South Bancorp, Inc.		40		397
Asta Funding, Inc.		50		382
Primus Guaranty Ltd.*		80		365
BofI Holding, Inc.*		30		356
NASB Financial, Inc.		20		331
Pebblebrook Hotel Trust*		18		324
Crawford & Co. — Class B*		130		316
CompuCredit Holdings Corp.		60		289
Encore Bancshares, Inc.*		40		288
Consolidated-Tomoka Land Co.		10		285
Fox Chase Bancorp, Inc.*		30		284
Pzena Investment Management, Inc. — Class A		40		275
First of Long Island Corp.		10		250
Rodman & Renshaw Capital Group, Inc.*		90		194
Doral Financial Corp.*		100		166
Gerova Financial Group Ltd.*		30		162
Waterstone Financial, Inc.*		40		160
K-Fed Bancorp		20		158
First BanCorp*		503		141
CNB Financial Corp.		10		137
California First National Bancorp		10		127
Total Financials				1,086,939
INFORMATION TECHNOLOGY - 8.9%
TIBCO Software, Inc.*		888		15,753
Riverbed Technology, Inc.*		339		15,452
VeriFone Systems, Inc.*		462		14,354
Rackspace Hosting, Inc.*		517		13,432
Parametric Technology Corp.*		620		12,115
Jack Henry & Associates, Inc.		464		11,832
ADTRAN, Inc.		330		11,649
Concur Technologies, Inc.*		220		10,877
Netlogic Microsystems, Inc.*		342		9,432
Ariba, Inc.*		480		9,072
RF Micro Devices, Inc.*		1,444		8,866
Plantronics, Inc.		260		8,783
Acme Packet, Inc.*		230		8,726
SuccessFactors, Inc.*		342		8,588
Aruba Networks, Inc.*		394		8,408
Anixter International, Inc.*		150		8,099
TriQuint Semiconductor, Inc.*		830		7,968
Quest Software, Inc.*		320		7,869
Microsemi Corp.*		450		7,718
Veeco Instruments, Inc.*		220		7,671
Progress Software Corp.*		230		7,613
Finisar Corp.*		400		7,516
Viasat, Inc.*		180		7,400
Wright Express Corp.*		207		7,392
Netezza Corp.*		269		7,250

			MARKET
	SHARES		VALUE
CACI International,
Inc. — Class A*		160	$	7,242
GSI Commerce, Inc.*		290		7,163
Digital River, Inc.*		210		7,148
Hittite Microwave Corp.*		150		7,147
InterDigital, Inc.*		240		7,106
Cavium Networks, Inc.*		239		6,874
Semtech Corp.*		330		6,663
Arris Group, Inc.*		680		6,644
ADC Telecommunications, Inc.*		520		6,588
Sapient Corp.		547		6,548
Blackboard, Inc.*		180		6,487
Omnivision Technologies, Inc.*		280		6,451
Lawson Software, Inc.*		748		6,336
Unisys Corp.*		227		6,333
Cirrus Logic, Inc.*		347		6,190
Plexus Corp.*		210		6,164
Taleo Corp. — Class A*		210		6,088
Mentor Graphics Corp.*		574		6,067
CommVault Systems, Inc.*		230		5,987
Acxiom Corp.*		375		5,948
Cymer, Inc.*		160		5,933
Blackbaud, Inc.		240		5,770
ValueClick, Inc.*		438		5,729
j2 Global Communications, Inc.*		240		5,710
TiVo, Inc.*		619		5,608
Coherent, Inc.*		140		5,601
JDA Software Group, Inc.*		220		5,579
Cognex Corp.		207		5,552
Benchmark Electronics, Inc.*		338		5,543
MAXIMUS, Inc.		90		5,542
ArcSight, Inc.*		127		5,532
Infinera Corp.*		469		5,473
OpenTable, Inc.*		80		5,446
Fair Isaac Corp.		220		5,425
Blue Coat Systems, Inc.*		220		5,293
Earthlink, Inc.		579		5,263
Littelfuse, Inc.*		120		5,244
Sanmina-SCI Corp.*		430		5,194
Integrated Device Technology, Inc.*		870		5,090
Netgear, Inc.*		188		5,078
Synaptics, Inc.*		180		5,065
Ultimate Software Group, Inc.*		130		5,023
Fortinet, Inc.*		200		5,000
Tessera Technologies, Inc.*		270		4,995
MKS Instruments, Inc.*		270		4,855
Tekelec*		368		4,769
L-1 Identity Solutions, Inc. —*		406		4,762
Mantech International Corp. —
Class A*		120		4,752
Euronet Worldwide, Inc.*		260		4,677
Emulex Corp.*		438		4,573
SRA International, Inc. — Class A*		228		4,496
Sourcefire, Inc.*		150		4,326

100    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Oclaro, Inc.*		267	$	4,275
Checkpoint Systems, Inc.*		210		4,273
SAVVIS, Inc.*		200		4,216
TTM Technologies, Inc.*		428		4,190
Cabot Microelectronics Corp.*		130		4,183
Advent Software, Inc.*		80		4,175
Power Integrations, Inc.		130		4,133
Comtech Telecommunications Corp.		150		4,103
ACI Worldwide, Inc.*		180		4,030
Websense, Inc.*		227		4,027
Sonus Networks, Inc.*		1,120		3,954
FEI Co.*		200		3,914
Insight Enterprises, Inc.*		250		3,910
Universal Display Corp.*		164		3,854
Take-Two Interactive Software, Inc.*		380		3,853
Rofin-Sinar Technologies, Inc.*		150		3,807
Scansource, Inc.*		136		3,773
Amkor Technology, Inc.*		558		3,666
DealerTrack Holdings, Inc.*		210		3,587
Harmonic, Inc.*		519		3,571
Tyler Technologies, Inc.*		175		3,528
Manhattan Associates, Inc.*		120		3,522
Applied Micro Circuits Corp.*		347		3,470
MicroStrategy, Inc. — Class A*		40		3,464
Art Technology Group, Inc.*		836		3,453
DTS, Inc.*		90		3,435
Aspen Technology, Inc.*		330		3,422
SYNNEX Corp.*		120		3,377
Entegris, Inc.*		715		3,339
IPG Photonics Corp.*		138		3,331
Netscout Systems, Inc.*		160		3,282
CSG Systems International, Inc.*		180		3,281
Sycamore Networks, Inc.		100		3,241
Constant Contact, Inc.*		150		3,215
Ebix, Inc.*		137		3,213
Terremark Worldwide, Inc.*		310		3,205
Intermec, Inc.*		260		3,188
Isilon Systems, Inc.*		140		3,119
Syntel, Inc.		70		3,115
SolarWinds, Inc.*		180		3,107
Diodes, Inc.*		180		3,076
Stratasys, Inc.*		110		3,049
Cogent, Inc.*		277		2,947
Lattice Semiconductor Corp.*		620		2,945
Electronics for Imaging, Inc.*		240		2,909
OSI Systems, Inc.*		80		2,906
Park Electrochemical Corp.		110		2,897
Heartland Payment Systems, Inc.		190		2,892
Black Box Corp.		90		2,885
Entropic Communications, Inc.*		300		2,880
LogMeIn, Inc.*		80		2,878
DG FastChannel, Inc.*		130		2,828
comScore, Inc.*		120		2,822

			MARKET
	SHARES		VALUE
Volterra Semiconductor Corp.*		130	$	2,798
Monolithic Power Systems, Inc.*		170		2,776
Standard Microsystems Corp.*		120		2,737
Radiant Systems, Inc.*		160		2,736
STEC, Inc.*		218		2,714
United Online, Inc.		470		2,688
Brightpoint, Inc.*		382		2,670
Micrel, Inc.		270		2,662
Loral Space & Communications, Inc.*		50		2,610
ATMI, Inc.*		170		2,526
Rogers Corp.*		80		2,518
NIC, Inc.		300		2,487
Pegasystems, Inc.		80		2,484
MTS Systems Corp.		80		2,480
Quantum Corp.*		1,152		2,442
Advanced Energy Industries, Inc.*		187		2,442
MIPS Technologies, Inc. — Class A*		250		2,433
iGate Corp.		134		2,431
Compellent Technologies, Inc.*		131		2,382
TeleTech Holdings, Inc.*		160		2,374
Xyratex Ltd.*		160		2,374
TNS, Inc.*		140		2,373
Kulicke & Soffa Industries, Inc.*		382		2,365
RightNow Technologies, Inc.*		120		2,364
Brooks Automation, Inc.*		350		2,349
Forrester Research, Inc.*		70		2,316
Formfactor, Inc.*		268		2,305
Ancestry.com, Inc.*		100		2,276
Epicor Software Corp.*		260		2,262
Newport Corp.*		198		2,245
Ixia*		181		2,244
Ultratech, Inc.*		130		2,223
EPIQ Systems, Inc.		180		2,207
Oplink Communications, Inc.*		111		2,202
Zoran Corp.*		280		2,139
NetSuite, Inc.*		90		2,121
Anadigics, Inc.*		347		2,113
Avid Technology, Inc.*		160		2,098
VirnetX Holding Corp.		140		2,055
Kenexa Corp.*		117		2,050
Maxwell Technologies, Inc.*		140		2,045
LivePerson, Inc.*		240		2,016
Internet Brands, Inc. — Class A*		150		1,992
Synchronoss Technologies, Inc.*		110		1,959
Sigma Designs, Inc.*		170		1,953
Internet Capital Group, Inc.*		177		1,952
Silicon Image, Inc.*		407		1,945
Actel Corp.*		120		1,914
Unica Corp.*		90		1,888
Move, Inc.*		844		1,882
Methode Electronics, Inc.		198		1,798
Power-One, Inc.*		197		1,791
Daktronics, Inc.		180		1,768
FARO Technologies, Inc.*		80		1,745

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    101

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
CTS Corp.		180	$	1,732
Cass Information Systems, Inc.		50		1,716
SMART Modular Technologies WWH, Inc.*		280		1,688
DivX, Inc.*		176		1,677
Cohu, Inc.		133		1,674
Electro Scientific Industries, Inc.*		150		1,667
Vocus, Inc.*		90		1,663
LTX-Credence Corp.*		790		1,651
Infospace, Inc.*		188		1,628
Hypercom Corp.*		250		1,625
Sonic Solutions, Inc.*		140		1,593
Smith Micro Software, Inc.*		160		1,590
Ceva, Inc.*		110		1,573
ExlService Holdings, Inc.*		80		1,556
Bottomline Technologies, Inc.*		100		1,536
Photronics, Inc.*		290		1,534
Echelon Corp.*		177		1,513
ModusLink Global Solutions, Inc.*		238		1,511
Nanometrics, Inc.*		100		1,505
Diamond Management & Technology Consultants, Inc. — Class A		120		1,500
Imation Corp.*		160		1,493
EMS Technologies, Inc.*		80		1,490
Extreme Networks*		477		1,483
RealNetworks, Inc.*		452		1,474
Knot, Inc.*		160		1,461
S1 Corp.*		280		1,459
THQ, Inc.*		360		1,447
Mercury Computer Systems, Inc.*		120		1,444
Rudolph Technologies, Inc.*		167		1,388
Internap Network Services Corp.*		280		1,375
Symmetricom, Inc.*		240		1,373
UTStarcom, Inc.*		632		1,371
Lionbridge Technologies, Inc.*		317		1,363
Hughes Communications, Inc.*		50		1,362
Rubicon Technology, Inc.*		60		1,361
Novatel Wireless, Inc.*		170		1,340
Super Micro Computer, Inc.*		128		1,330
Aviat Networks, Inc.*		324		1,325
KIT Digital, Inc.*		110		1,319
Mindspeed Technologies, Inc.*		167		1,298
Measurement Specialties, Inc.*		70		1,294
NVE Corp.*		30		1,291
Keithley Instruments, Inc.		60		1,291
Powerwave Technologies, Inc.*		708		1,289
Opnet Technologies, Inc.		70		1,270
Kopin Corp.*		357		1,267
Cray, Inc.*		190		1,254
Silicon Graphics International Corp.*		160		1,242
IXYS Corp.*		130		1,242
Digi International, Inc.*		130		1,234
Interactive Intelligence, Inc.*		70		1,232

			MARKET
	SHARES		VALUE
Actuate Corp.*		238	$	1,226
Radisys Corp.*		130		1,225
Pericom Semiconductor Corp.*		140		1,217
Integrated Silicon Solution, Inc.*		140		1,205
Intevac, Inc.*		120		1,201
ShoreTel, Inc.*		240		1,190
LoopNet, Inc.*		100		1,184
Anaren, Inc.*		70		1,175
support.com, Inc.*		250		1,145
AXT, Inc.*		170		1,125
Liquidity Services, Inc.*		70		1,121
Exar Corp.*		187		1,120
Seachange International, Inc.*		150		1,112
SS&C Technologies Holdings, Inc.*		70		1,106
Supertex, Inc.*		50		1,106
Global Cash Access Holdings, Inc.*		270		1,102
Comverge, Inc.*		140		1,100
Multi-Fineline Electronix, Inc.*		50		1,100
Monotype Imaging Holdings, Inc.*		120		1,098
Perficient, Inc.*		120		1,097
Axcelis Technologies, Inc.*		560		1,081
MoneyGram International, Inc.*		437		1,066
Electro Rent Corp.		80		1,062
Rosetta Stone, Inc.*		50		1,062
KVH Industries, Inc.*		70		1,051
Spansion, Inc. — Class A*		70		1,048
Bel Fuse, Inc. — Class B		50		1,041
Limelight Networks, Inc.*		177		1,041
Ultra Clean Holdings*		120		1,034
Magma Design Automation, Inc.*		277		1,025
Globecomm Systems, Inc.*		120		1,004
Ciber, Inc.*		328		987
Technitrol, Inc.		220		970
Wave Systems Corp. — Class A*		430		963
DemandTec, Inc.*		100		941
TeleCommunication Systems, Inc. — Class A*		240		938
PROS Holdings, Inc.*		100		928
VASCO Data Security International, Inc.*		140		910
Immersion Corp.*		150		886
Spectrum Control, Inc.*		60		883
Zygo Corp.*		90		882
Gerber Scientific, Inc.*		140		864
Zix Corp.*		300		852
Microtune, Inc.*		290		841
DSP Group, Inc.*		120		840
Rimage Corp.*		50		822
Saba Software, Inc.*		150		816
Advanced Analogic Technologies, Inc.*		230		807
Deltek, Inc.*		100		801
BigBand Networks, Inc.*		270		767

102    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Dice Holdings, Inc.*		90	$	763
Openwave Systems, Inc.*		447		760
Evergreen Solar, Inc.*		1,029		755
QuinStreet, Inc.*		50		752
Mattson Technology, Inc.*		270		742
Richardson Electronics, Ltd.		70		735
MoSys, Inc.*		150		732
Conexant Systems, Inc.*		440		722
Archipelago Learning, Inc.*		60		718
Renaissance Learning, Inc.		70		713
PLX Technology, Inc.*		197		713
American Software, Inc. — Class A		120		708
Digimarc Corp.*		30		704
Keynote Systems, Inc.		60		697
Virtusa Corp.*		70		678
CDC Corporation — Class A*		160		677
X-Rite, Inc.*		177		671
Integral Systems, Inc.*		90		664
Trident Microsystems, Inc.*		383		655
Stamps.com, Inc.*		50		650
Agilysys, Inc.*		100		650
DDi Corp.		70		647
Echo Global Logistics, Inc.*		50		639
Online Resources Corp.*		140		622
Hackett Group, Inc.*		150		620
PC-Telephone, Inc.*		100		614
Computer Task Group, Inc.*		80		611
Calix, Inc.*		40		574
GSI Technology, Inc.*		100		573
NCI, Inc. — Class A*		30		568
SRS Labs, Inc.*		60		560
CPI International, Inc.*		40		560
Network Equipment Technologies, Inc.*		160		552
Marchex, Inc. — Class A		100		545
Meru Networks, Inc.*		30		517
Travelzoo, Inc.*		20		515
FalconStor Software, Inc.*		160		490
Occam Networks, Inc.*		60		470
ICx Technologies, Inc.*		60		453
Tessco Technologies, Inc.		30		452
Hutchinson Technology, Inc.*		130		451
MaxLinear, Inc. — Class A*		40		449
PDF Solutions, Inc.*		117		433
ePlus, Inc.*		20		429
TechTarget, Inc.*		80		420
Guidance Software, Inc.*		70		409
Local.com Corp.*		90		398
Tier Technologies, Inc. — Class B*		70		388
SPS Commerce, Inc.*		30		385
Opnext, Inc.*		230		361
PC Connection, Inc.*		50		341

			MARKET
	SHARES		VALUE
Alpha & Omega Semiconductor Ltd.*		30	$	341
Presstek, Inc.*		150		329
Viasystems Group, Inc.*		20		304
Network Engines, Inc.*		190		277
Convio, Inc.*		30		277
QAD, Inc.*		60		250
FSI International, Inc.*		87		231
TeleNav, Inc.*		40		212
Ikanos Communications, Inc.*		160		190
Stream Global Services, Inc.*		20		81
Total Information Technology				1,005,900
INDUSTRIALS - 7.3%
Nordson Corp.		180		13,264
Woodward Governor Co.		330		10,699
CLARCOR, Inc.		270		10,430
Acuity Brands, Inc.		230		10,175
GrafTech International Ltd.*		650		10,160
Baldor Electric Co.		248		10,019
Alaska Air Group, Inc.*		188		9,594
Hexcel Corp.*		520		9,251
Esterline Technologies Corp.*		160		9,157
Genesee & Wyoming, Inc. — Class A*		210		9,112
EMCOR Group, Inc.*		358		8,803
JetBlue Airways Corp.*		1,314		8,791
Moog, Inc. — Class A*		240		8,522
Watsco, Inc.		150		8,352
Actuant Corp. — Class A		357		8,197
Clean Harbors, Inc.*		120		8,130
US Airways Group, Inc.*		866		8,011
Geo Group, Inc.*		330		7,705
Brady Corp. — Class A		260		7,584
Curtiss-Wright Corp.		250		7,575
AO Smith Corp.		130		7,526
Dollar Thrifty Automotive Group, Inc.*		150		7,521
American Superconductor Corp.*		240		7,464
Teledyne Technologies, Inc.*		187		7,446
Atlas Air Worldwide Holdings, Inc.*		140		7,042
Applied Industrial Technologies, Inc.		230		7,038
United Stationers, Inc.*		130		6,956
Tetra Tech, Inc.*		328		6,878
HEICO Corp.		150		6,846
HNI Corp.		238		6,845
Triumph Group, Inc.		90		6,713
Belden, Inc.		248		6,542
EnerSys*		260		6,492
Avis Budget Group, Inc.*		546		6,361
Knight Transportation, Inc.		324		6,263
Kaydon Corp.		180		6,228
Herman Miller, Inc.		307		6,042
ABM Industries, Inc.		279		6,024

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    103

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Brink’s Co.		260	$	5,980
HUB Group, Inc. — Class A*		200		5,852
Corporate Executive Board Co.		178		5,618
Old Dominion Freight Line, Inc.*		220		5,592
Watts Water Technologies, Inc. — Class A		160		5,448
Healthcare Services Group, Inc.		239		5,447
Simpson Manufacturing Company, Inc.		210		5,414
CoStar Group, Inc.*		110		5,358
Deluxe Corp.		280		5,356
AirTran Holdings, Inc.*		726		5,336
Mueller Industries, Inc.		199		5,272
Briggs & Stratton Corp.		270		5,133
Insituform Technologies, Inc. — Class A*		210		5,078
Middleby Corp.*		80		5,071
Rollins, Inc.		210		4,910
GeoEye, Inc.*		121		4,898
II-VI, Inc.*		130		4,853
United Rentals, Inc.*		322		4,778
Orbital Sciences Corp.*		310		4,743
Werner Enterprises, Inc.		230		4,713
DigitalGlobe, Inc.*		154		4,682
ESCO Technologies, Inc.		140		4,656
Barnes Group, Inc.		260		4,573
Granite Construction, Inc.		190		4,321
Skywest, Inc.		300		4,188
Forward Air Corp.		160		4,160
Korn*		250		4,135
RBC Bearings, Inc.*		120		4,078
Heartland Express, Inc.		270		4,015
Franklin Electric Company, Inc.		120		3,979
Amerco, Inc.*		50		3,974
AAR Corp.*		208		3,881
Knoll, Inc.		250		3,878
Interface, Inc. — Class A		267		3,799
Mine Safety Appliances Co.		140		3,794
Kaman Corp.		140		3,669
Robbins & Myers, Inc.		137		3,669
Polypore International, Inc.*		120		3,619
Advisory Board Co.*		80		3,532
A123 Systems, Inc.*		390		3,498
Beacon Roofing Supply, Inc.*		239		3,482
EnerNOC, Inc.*		110		3,455
Quanex Building Products Corp.		200		3,454
EnPro Industries, Inc.*		110		3,441
Resources Connection, Inc.		250		3,440
Ameron International Corp.		50		3,398
Steelcase, Inc. — Class A		407		3,390
Allegiant Travel Co. — Class A		80		3,386
Arkansas Best Corp.		139		3,368
Blount International, Inc.*		260		3,310
Ceradyne, Inc.*		140		3,269
Cubic Corp.		80		3,264
Badger Meter, Inc.		80		3,238

			MARKET
	SHARES		VALUE
TrueBlue, Inc.*		237	$	3,235
Administaff, Inc.		120		3,232
Interline Brands, Inc.*		177		3,193
Acacia Research - Acacia Technologies*		180		3,168
McGrath Rentcorp		130		3,114
Navigant Consulting, Inc.*		267		3,105
Unifirst Corp.		70		3,091
Tennant Co.		100		3,090
Chart Industries, Inc.*		150		3,054
Lindsay Corp.		70		3,032
Raven Industries, Inc.		80		3,031
AZZ, Inc.		70		2,999
SYKES Enterprises, Inc.*		220		2,988
American Science & Engineering, Inc.		40		2,946
Griffon Corp.*		240		2,926
Universal Forest Products, Inc.		100		2,925
Mobile Mini, Inc.*		190		2,915
MasTec, Inc.*		280		2,890
GT Solar International, Inc.*		342		2,863
Astec Industries, Inc.*		100		2,853
Tutor Perini Corp.*		142		2,853
Layne Christensen Co.*		110		2,848
CIRCOR International, Inc.		90		2,844
Albany International Corp. — Class A		150		2,838
ATC Technology Corp.*		110		2,721
Huron Consulting Group, Inc.*		120		2,639
NACCO Industries, Inc. — Class A		30		2,622
Rush Enterprises, Inc. — Class A*		170		2,608
Wabash National Corp.*		320		2,589
Titan International, Inc.		190		2,578
Ennis, Inc.		140		2,505
Mueller Water Products, Inc. — Class A		828		2,501
Bowne & Company, Inc.		220		2,493
John Bean Technologies Corp.		154		2,481
EnergySolutions, Inc.		480		2,414
Tredegar Corp.		127		2,410
Exponent, Inc.*		70		2,351
G&K Services, Inc. — Class A		100		2,286
Aircastle, Ltd.		267		2,264
ICF International, Inc.*		90		2,256
Kforce, Inc.*		160		2,195
TAL International Group, Inc.		90		2,180
Ladish Company, Inc.*		70		2,179
Comfort Systems USA, Inc.		200		2,146
Altra Holdings, Inc.*		145		2,136
Viad Corp.		110		2,127
Dycom Industries, Inc.*		210		2,098
Consolidated Graphics, Inc.*		50		2,073
Sun Hydraulics Corp.		70		1,973
Colfax Corp.*		130		1,933
Gorman-Rupp Co.		70		1,929
RSC Holdings, Inc.*		257		1,917

104    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Force Protection, Inc.*		380	$	1,915
Marten Transport Ltd.		80		1,854
Dolan Co.*		160		1,819
MYR Group, Inc.*		110		1,803
Great Lakes Dredge & Dock Corp.		310		1,801
Aerovironment, Inc.*		80		1,780
Federal Signal Corp.		328		1,768
Air Transport Services Group, Inc.*		288		1,754
Genco Shipping & Trading Ltd.*		110		1,753
Heidrick & Struggles International, Inc.		90		1,753
Applied Signal Technology, Inc.		70		1,742
Eagle Bulk Shipping, Inc.*		330		1,723
Team, Inc.*		100		1,721
Orion Marine Group, Inc.*		137		1,700
Standex International Corp.		70		1,693
Hawaiian Holdings, Inc.*		280		1,677
ACCO Brands Corp.*		290		1,668
SFN Group, Inc.*		277		1,665
Columbus McKinnon Corp.*		100		1,659
AAON, Inc.		70		1,646
Kelly Services, Inc. — Class A*		140		1,642
Encore Wire Corp.		80		1,641
Cascade Corp.		50		1,590
Greenbrier Companies, Inc.*		100		1,559
Powell Industries, Inc.*		50		1,556
American Reprographics Co.*		197		1,546
GenCorp, Inc.*		310		1,525
Cenveo, Inc.*		300		1,509
FreightCar America, Inc.		60		1,476
Republic Airways Holdings, Inc.*		178		1,474
Vicor Corp.		100		1,461
LB Foster Co. — Class A*		50		1,447
US Ecology, Inc.		90		1,440
Gibraltar Industries, Inc.*		160		1,437
Satcon Technology Corp.*		380		1,429
CBIZ, Inc.*		240		1,423
3D Systems Corp.*		90		1,414
Celadon Group, Inc.*		100		1,381
Apogee Enterprises, Inc.		150		1,373
Generac Holdings, Inc.*		100		1,364
Saia, Inc.*		90		1,344
Textainer Group Holdings Ltd.		50		1,337
Trex Company, Inc.*		70		1,335
Kadant, Inc.*		70		1,324
Taser International, Inc.*		336		1,304
School Specialty, Inc.*		100		1,301
Hawk Corp. — Class A*		30		1,298
Commercial Vehicle Group, Inc.*		127		1,293
Sauer-Danfoss, Inc.*		60		1,277
Energy Conversion Devices, Inc.*		250		1,255
Ampco-Pittsburgh Corp.		50		1,241
Ener1, Inc.*		331		1,218
M&F Worldwide Corp.*		50		1,217
Standard Parking Corp.*		70		1,197

			MARKET
	SHARES		VALUE
H&E Equipment Services, Inc.*		150	$	1,196
PMFG, Inc.*		70		1,194
Trimas Corp.*		80		1,188
Excel Maritime Carriers Ltd. — Class A*		210		1,180
RailAmerica, Inc.*		120		1,156
Herley Industries, Inc.*		70		1,155
Advanced Battery Technologies, Inc.*		318		1,142
Titan Machinery, Inc.*		70		1,141
American Commercial Lines, Inc.*		40		1,115
Sterling Construction Company, Inc.*		90		1,114
Schawk, Inc. — Class A		60		1,108
Ducommun, Inc.		50		1,089
Pacer International, Inc.*		180		1,087
CRA International, Inc.*		60		1,083
Microvision, Inc.*		480		1,051
Tecumseh Products Co. — Class A*		90		1,032
Houston Wire & Cable Co.		100		1,003
Capstone Turbine Corp.*		1,290		996
Kimball International, Inc. — Class B		170		991
Michael Baker Corp.*		30		989
On Assignment, Inc.*		187		982
Furmanite Corp.*		200		976
APAC Customer Services, Inc.*		170		962
Kratos Defense & Security Solutions, Inc.*		90		958
Aceto Corp.		140		951
Broadwind Energy, Inc.*		501		937
Dynamic Materials Corp.		60		907
CDI Corp.		70		904
American Woodmark Corp.		50		886
Baltic Trading Ltd.		80		881
Northwest Pipe Co.*		50		875
LaBarge, Inc.*		70		874
Astronics Corp.*		50		873
NCI Building Systems, Inc.*		90		858
Innerworkings, Inc.*		130		854
International Shipholding Corp.		30		847
PowerSecure International, Inc.*		90		833
Mistras Group, Inc.*		70		811
Insteel Industries, Inc.		90		808
LMI Aerospace, Inc.*		50		796
Energy Recovery, Inc.*		220		790
American Railcar Industries, Inc.*		50		784
Graham Corp.		50		776
Ultrapetrol Bahamas Ltd.*		120		770
Multi-Color Corp.		50		770
Dynamex, Inc.*		50		762
DXP Enterprises, Inc.*		40		759
CAI International, Inc.*		50		759
Metalico, Inc.*		197		755
Primoris Services Corp.		110		719

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    105

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Courier Corp.		50	$	711
Thermadyne Holdings Corp.*		50		706
Met-Pro Corp.		70		706
VSE Corp.		20		705
Patriot Transportation Holding, Inc.*		10		701
Twin Disc, Inc.		50		698
Miller Industries, Inc.		50		676
Horizon Lines, Inc. — Class A		160		672
Alamo Group, Inc.		30		670
Lydall, Inc.*		90		662
Flow International Corp.*		250		657
LSI Industries, Inc.		100		642
Hill International, Inc.*		143		641
GP Strategies Corp.*		70		636
Fuel Tech, Inc.*		100		627
Douglas Dynamics, Inc.		50		618
Barrett Business Services, Inc.		40		608
Hudson Highland Group, Inc.*		170		585
Pike Electric Corp.*		80		582
Volt Information Sciences, Inc.*		80		576
Franklin Covey Co.*		70		556
Builders FirstSource, Inc.*		240		547
Casella Waste Systems, Inc. — Class A*		130		546
Pinnacle Airlines Corp.*		100		543
Roadrunner Transportation Systems, Inc.*		50		542
Xerium Technologies, Inc.*		40		527
UQM Technologies, Inc.*		190		486
Applied Energetics, Inc.*		420		470
Universal Truckload Services, Inc.*		30		470
USA Truck, Inc.*		30		449
Global Defense Technology & Systems, Inc.*		30		411
Park-Ohio Holdings Corp.*		30		399
Argan, Inc.*		40		374
Lawson Products, Inc.		20		305
Standard Register Co.		100		292
PAM Transportation Services, Inc.*		20		252
Hoku Corp.*		90		246
United Capital Corp.*		10		243
Coleman Cable, Inc.*		40		240
BlueLinx Holdings, Inc.*		60		239
PGT, Inc.*		100		228
FuelCell Energy, Inc.*		172		212
Quality Distribution, Inc.*		30		191
LECG Corp.*		140		154
Omega Flex, Inc.		10		143
Total Industrials				823,333
CONSUMER DISCRETIONARY - 6.7%
Sotheby’s		358		13,182
Warnaco Group, Inc.*		238		12,169
Polaris Industries, Inc.		170		11,067
Deckers Outdoor Corp.*		210		10,492

			MARKET
	SHARES		VALUE
Dana Holding Corp.*		753	$	9,277
Tenneco, Inc.*		320		9,270
Jones Apparel Group, Inc.		469		9,211
Valassis Communications, Inc.*		270		9,150
Life Time Fitness, Inc.*		220		8,683
Under Armour, Inc. — Class A*		190		8,558
Cheesecake Factory, Inc.*		322		8,523
Carter’s, Inc.*		323		8,505
ArvinMeritor, Inc.*		510		7,925
Wolverine World Wide, Inc.		270		7,833
Rent-A-Center, Inc. — Class A		348		7,788
Live Nation Entertainment, Inc.*		762		7,529
Childrens Place Retail Stores, Inc.*		150		7,315
Coinstar, Inc.*		170		7,308
Brunswick Corp.		480		7,306
Dress Barn, Inc.*		307		7,291
Vail Resorts, Inc.*		188		7,054
Capella Education Co.*		90		6,986
Jo-Ann Stores, Inc.*		154		6,861
Iconix Brand Group, Inc.*		392		6,860
Gymboree Corp.*		163		6,771
Men’s Wearhouse, Inc.		280		6,661
Cracker Barrel Old Country Store, Inc.		130		6,599
Cooper Tire & Rubber Co.		334		6,556
AnnTaylor Stores Corp.*		320		6,477
Jack in the Box, Inc.*		300		6,432
Jos A. Bank Clothiers, Inc.*		150		6,391
Saks, Inc.*		732		6,295
HSN, Inc.*		210		6,279
Eastman Kodak Co.*		1,436		6,031
OfficeMax, Inc.*		460		6,021
CROCS, Inc.*		459		5,972
Regis Corp.		308		5,892
Gaylord Entertainment Co.*		190		5,795
Sally Beauty Holdings, Inc.*		515		5,768
Collective Brands, Inc.*		352		5,681
Matthews International Corp. — Class A		160		5,658
PF Chang’s China Bistro, Inc.		120		5,544
Orient-Express Hotels Ltd. — Class A*		488		5,441
Dillard’s, Inc. — Class A		230		5,437
Pool Corp.		270		5,419
Steven Madden Ltd.*		130		5,338
Ulta Salon Cosmetics & Fragrance, Inc.*		174		5,081
Monro Muffler Brake, Inc.		110		5,072
Cinemark Holdings, Inc.		310		4,991
Talbots, Inc.*		380		4,978
99 Cents Only Stores*		250		4,720
Pier 1 Imports, Inc.*		560		4,586
DineEquity, Inc.*		100		4,498
Bob Evans Farms, Inc.		160		4,491
Skechers U.S.A., Inc. — Class A*		187		4,393

106    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Scholastic Corp.		157	$	4,368
Texas Roadhouse, Inc. — Class A*		310		4,359
Timberland Co. — Class A*		220		4,358
Buffalo Wild Wings, Inc.*		90		4,310
Ryland Group, Inc.		240		4,301
Cabela’s, Inc.*		220		4,176
Ruby Tuesday, Inc.*		350		4,155
CEC Entertainment, Inc.*		120		4,120
National CineMedia, Inc.		230		4,117
Cato Corp. — Class A		150		4,014
Helen of Troy Ltd.*		158		3,996
Arbitron, Inc.		140		3,916
Group 1 Automotive, Inc.*		130		3,884
Genesco, Inc.*		130		3,884
American Greetings Corp. — Class A		208		3,867
K12, Inc.*		130		3,774
Buckle, Inc.		142		3,769
Finish Line, Inc. — Class A		270		3,756
Grand Canyon Education, Inc.*		170		3,728
Hibbett Sports, Inc.*		148		3,693
Pinnacle Entertainment, Inc.*		327		3,646
Shutterfly, Inc.*		140		3,639
Maidenform Brands, Inc.*		120		3,462
Barnes & Noble, Inc.		210		3,404
Scientific Games Corp. — Class A*		350		3,395
BJ’s Restaurants, Inc.*		120		3,379
Meritage Homes Corp.*		170		3,335
Dex One Corp.*		270		3,316
Corinthian Colleges, Inc.*		470		3,299
Biglari Holdings, Inc.*		10		3,286
Modine Manufacturing Co.*		250		3,243
National Presto Industries, Inc.		30		3,194
Liz Claiborne, Inc.*		510		3,101
Belo Corp. — Class A*		493		3,057
Penske Automotive Group, Inc.*		230		3,036
Lumber Liquidators Holdings, Inc.*		121		2,973
PEP Boys-Manny Moe & Jack		280		2,962
American Public Education, Inc.*		90		2,957
True Religion Apparel, Inc.*		137		2,924
Columbia Sportswear Co.		50		2,922
Papa John’s International, Inc.*		110		2,902
American Axle & Manufacturing Holdings, Inc.*		320		2,886
Interval Leisure Group, Inc.*		210		2,829
Quiksilver, Inc.*		704		2,753
Fuel Systems Solutions, Inc.*		70		2,738
Stage Stores, Inc.		210		2,730
Sonic Corp.*		335		2,707
NutriSystem, Inc.		140		2,694
Blue Nile, Inc.*		60		2,669
Steiner Leisure Ltd.*		70		2,667
Lions Gate Entertainment Corp.*		360		2,646
Jakks Pacific, Inc.*		150		2,646
Brown Shoe Company, Inc.		230		2,638

			MARKET
	SHARES		VALUE
Domino’s Pizza, Inc.*		197	$	2,604
RC2 Corp.*		120		2,514
G-III Apparel Group Ltd.*		80		2,510
Pre-Paid Legal Services, Inc.*		40		2,500
Fred’s, Inc. — Class A		210		2,478
Vitamin Shoppe, Inc.*		90		2,471
Harte-Hanks, Inc.		210		2,451
Callaway Golf Co.		350		2,450
Ameristar Casinos, Inc.		140		2,443
Shuffle Master, Inc.*		290		2,439
Stewart Enterprises, Inc. — Class A		440		2,372
La-Z-Boy, Inc. *		277		2,338
Zumiez, Inc.*		110		2,328
Standard Pacific Corporation*		568		2,255
Asbury Automotive Group, Inc.*		160		2,251
Ethan Allen Interiors, Inc.		128		2,235
Charming Shoppes, Inc.*		619		2,179
Universal Technical Institute, Inc.		111		2,170
Knology, Inc.*		160		2,149
Boyd Gaming Corp.*		290		2,102
PetMed Express, Inc.		120		2,100
Drew Industries, Inc.*		100		2,086
Superior Industries International, Inc.		120		2,074
Sonic Automotive, Inc. — Class A*		210		2,064
Peet’s Coffee & Tea, Inc.*		60		2,054
iRobot Corp.*		110		2,043
DSW, Inc. — Class A*		70		2,009
Select Comfort Corp.*		290		1,966
Exide Technologies*		407		1,950
Citi Trends, Inc.*		80		1,937
Volcom, Inc.*		100		1,912
Pacific Sunwear of California, Inc.*		365		1,909
Ascent Media Corp. — Class A*		70		1,870
Wet Seal, Inc. — Class A*		551		1,868
Dorman Products, Inc.*		60		1,849
K-Swiss, Inc. — Class A*		145		1,849
World Wrestling Entertainment, Inc. — Class A		130		1,808
Rue21, Inc.*		70		1,807
Churchill Downs, Inc.		50		1,786
AFC Enterprises, Inc.*		140		1,736
hhgregg, Inc.*		70		1,733
California Pizza Kitchen, Inc.*		100		1,706
Coldwater Creek, Inc.*		322		1,697
Sinclair Broadcast Group, Inc. — Class A*		240		1,685
Winnebago Industries, Inc.*		160		1,667
Oxford Industries, Inc.		70		1,665
Beazer Homes USA, Inc.*		400		1,652
Denny’s Corp.*		530		1,648
Big 5 Sporting Goods Corp.		120		1,610
Core-Mark Holding Company, Inc.*		50		1,548
Bridgepoint Education, Inc.*		100		1,546
Christopher & Banks Corp.		188		1,487

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    107

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
CKX, Inc.*		300	$	1,470
Universal Electronics, Inc.*		70		1,459
HOT Topic, Inc.		239		1,432
Krispy Kreme Doughnuts, Inc.*		310		1,420
Mediacom Communications Corp. — Class A*		209		1,381
Red Robin Gourmet Burgers, Inc.*		70		1,373
Express, Inc.*		90		1,369
Sturm Ruger & Company, Inc.		100		1,364
EW Scripps Co. — Class A*		170		1,340
Marcus Corp.		110		1,303
Bebe Stores, Inc.		180		1,298
Retail Ventures, Inc.*		120		1,291
Rentrak Corp.*		50		1,263
America’s Car-Mart, Inc.*		50		1,259
McClatchy Co. — Class A*		320		1,258
Kirkland’s, Inc.*		90		1,247
Blyth, Inc.		30		1,237
Amerigon, Inc.*		120		1,236
Furniture Brands International, Inc.*		227		1,221
Stein Mart, Inc.*		137		1,210
Standard Motor Products, Inc.		110		1,158
Lincoln Educational Services Corp.*		80		1,153
Lithia Motors, Inc. — Class A		120		1,151
Smith & Wesson Holding Corp.*		320		1,139
Ambassadors Group, Inc.		100		1,134
Hovnanian Enterprises, Inc. — Class A*		280		1,100
Overstock.com, Inc.*		70		1,100
Speedway Motorsports, Inc.		70		1,098
Perry Ellis International, Inc.*		50		1,092
Warner Music Group Corp.*		240		1,080
Cavco Industries, Inc.*		30		1,077
Media General, Inc. — Class A*		120		1,075
Entercom Communications Corp. — Class A*		135		1,061
Libbey, Inc.*		80		1,054
Journal Communications, Inc. — Class A*		228		1,028
Shoe Carnival, Inc.*		50		1,011
Unifi, Inc.*		220		992
Destination Maternity Corp.*		30		988
Leapfrog Enterprises, Inc. — Class A*		180		986
Haverty Furniture Companies, Inc.		90		982
Landry’s Restaurants, Inc.*		40		980
Drugstore.com, Inc.*		501		962
Global Sources Ltd.*		120		906
Casual Male Retail Group, Inc.*		220		898
Morgans Hotel Group Co.*		120		878
Movado Group, Inc.*		80		870
MarineMax, Inc.*		120		845
Stoneridge, Inc.*		80		841
Spartan Motors, Inc.		180		835
M/I Homes, Inc.*		80		830

			MARKET
	SHARES		VALUE
CPI Corp.		30	$	776
Tuesday Morning Corp.*		160		763
Lifetime Brands, Inc.*		50		755
Cherokee, Inc.		40		730
Mac-Gray Corp.		60		728
Weyco Group, Inc.		30		727
O’Charleys, Inc.*		100		719
West Marine, Inc.*		70		711
AH Belo Corp. — Class A*		100		707
Jamba, Inc.*		320		701
CSS Industries, Inc.		40		692
Kenneth Cole Productions, Inc. — Class A*		40		667
Martha Stewart Living Omnimedia — Class A*		140		664
LIN TV Corp. — Class A*		147		653
Lee Enterprises, Inc.*		240		643
Ruth’s Hospitality Group, Inc.*		160		642
Sealy Corp.*		260		634
SuperMedia, Inc.*		60		634
Orbitz Worldwide, Inc.*		100		630
McCormick & Schmick’s Seafood
Restaurants, Inc.*		80		622
Playboy Enterprises, Inc. —
Class B*		120		617
Audiovox Corp. — Class A*		90		616
Arctic Cat, Inc.*		60		615
Systemax, Inc.		50		614
Bon-Ton Stores, Inc.		60		610
Skyline Corp.		30		608
Ballantyne Strong, Inc.*		70		605
Gaiam, Inc. — Class A		90		602
Hooker Furniture Corp.		50		581
REX American Resources Corp.*		40		580
US Auto Parts Network, Inc.*		70		574
Monarch Casino & Resort, Inc.*		50		560
Multimedia Games, Inc.*		150		555
Build-A-Bear Workshop, Inc. — Class A*		90		544
Midas, Inc.*		70		533
Fisher Communications, Inc.*		30		523
Gray Television, Inc.*		260		523
Entravision Communications Corp. — Class A*		260		517
Steinway Musical Instruments, Inc.*		30		517
Kid Brands, Inc.*		60		516
RG Barry Corp.		50		514
Isle of Capri Casinos, Inc.*		70		501
Culp, Inc.*		50		490
Joe’s Jeans, Inc.*		230		485
Delta Apparel, Inc.*		30		450
Red Lion Hotels Corp.*		60		446
Carmike Cinemas, Inc.*		50		436
Vitacost.com, Inc.*		70		421
Caribou Coffee Company, Inc.*		40		416

108    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Lacrosse Footwear, Inc.		30	$	414
ReachLocal, Inc.*		30		413
Brookfield Homes Corp.*		50		409
Summer Infant, Inc.*		50		391
Carrols Restaurant Group, Inc.*		70		371
LodgeNet Interactive Corp.*		130		364
New York & Company, Inc.*		140		360
PRIMEDIA, Inc.		90		342
Cumulus Media, Inc. — Class A*		120		337
Winmark Corp.		10		334
Outdoor Channel Holdings, Inc.*		60		332
Einstein Noah Restaurant Group, Inc.*		30		318
Borders Group, Inc.*		267		318
Marine Products Corp.*		50		307
Shiloh Industries, Inc.*		30		290
1-800-Flowers.com, Inc. — Class A*		138		261
Nexstar Broadcasting Group, Inc. — Class A*		50		257
Johnson Outdoors, Inc. — Class A*		20		256
Cambium Learning Group, Inc.*		80		256
Westwood One, Inc.*		30		255
American Apparel, Inc.*		180		221
Princeton Review, Inc.*		100		204
Learning Tree International, Inc.		20		202
National American University Holdings, Inc.		30		202
Bluegreen Corp.*		70		195
Conn’s, Inc.*		40		186
Empire Resorts, Inc.*		140		155
Radio One, Inc. — Class D*		170		150
Books-A-Million, Inc. — Class A		20		120
Beasley Broadcasting Group, Inc. — Class A*		20		106
Crown Media Holdings, Inc. — Class A*		10		24
Total Consumer Discretionary				762,003
HEALTH CARE - 6.2%
Salix Pharmaceuticals Ltd.*		310		12,313
AMERIGROUP Corp.*		280		11,892
STERIS Corp.		318		10,564
Psychiatric Solutions, Inc.*		310		10,400
Owens & Minor, Inc.		340		9,676
Healthsouth Corp.*		500		9,600
Medicis Pharmaceutical Corp. — Class A		320		9,488
Onyx Pharmaceuticals, Inc.*		341		8,996
HMS Holdings Corp.*		150		8,841
Magellan Health Services, Inc.*		177		8,361
Savient Pharmaceuticals, Inc.*		357		8,165
American Medical Systems Holdings, Inc.*		400		7,832
Dionex Corp.*		90		7,780

			MARKET
	SHARES		VALUE
Healthspring, Inc.*		300	$	7,752
Masimo Corp.		280		7,647
Immucor, Inc.*		385		7,635
Haemonetics Corp.*		130		7,609
Nektar Therapeutics*		510		7,533
Incyte Corporation Ltd.*		470		7,515
Alkermes, Inc.*		508		7,442
NuVasive, Inc.*		210		7,379
Cubist Pharmaceuticals, Inc.*		310		7,251
Parexel International Corp.*		308		7,124
Catalyst Health Solutions, Inc.*		200		7,042
Seattle Genetics, Inc.*		450		6,988
Volcano Corp.*		267		6,937
Acorda Therapeutics, Inc.*		210		6,934
Chemed Corp.		120		6,836
Theravance, Inc.*		340		6,834
Impax Laboratories, Inc.*		344		6,811
WellCare Health Plans, Inc.*		230		6,661
Quality Systems, Inc.		100		6,631
PSS World Medical, Inc.*		310		6,628
Sirona Dental Systems, Inc.*		177		6,379
Viropharma, Inc.*		418		6,232
Align Technology, Inc.*		317		6,207
West Pharmaceutical Services, Inc.		179		6,141
Centene Corp.*		260		6,133
Cepheid, Inc.*		325		6,081
athenahealth, Inc.*		177		5,845
Bruker Corp.*		395		5,542
Auxilium Pharmaceuticals, Inc.*		217		5,377
Par Pharmaceutical Companies, Inc.*		180		5,234
Pharmasset, Inc.*		165		4,867
MedAssets, Inc.*		230		4,839
Meridian Bioscience, Inc.		217		4,748
Integra LifeSciences Holdings Corp.*		115		4,538
Isis Pharmaceuticals, Inc.*		509		4,276
Invacare Corp.		160		4,242
Medicines Co.*		290		4,118
DexCom, Inc.*		309		4,085
Neogen Corp.*		120		4,062
MWI Veterinary Supply, Inc.*		70		4,040
Martek Biosciences Corp.*		177		4,006
Cyberonics, Inc.*		148		3,949
Zoll Medical Corp.*		120		3,872
Arthrocare Corp.*		137		3,724
CONMED Corporation*		160		3,586
Amedisys, Inc.*		150		3,570
HeartWare International, Inc.*		50		3,438
PDL BioPharma, Inc.		638		3,356
Momenta Pharmaceuticals, Inc.*		219		3,296
InterMune, Inc.*		238		3,242
Gentiva Health Services, Inc.*		148		3,234
Luminex Corp.*		200		3,200

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    109

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Analogic Corp.		70	$	3,142
Landauer, Inc.		50		3,131
Amsurg Corp. — Class A*		175		3,059
Wright Medical Group, Inc.*		210		3,026
Enzon Pharmaceuticals, Inc.*		267		3,004
Halozyme Therapeutics, Inc.*		386		2,976
Questcor Pharmaceuticals, Inc.*		300		2,976
Celera Corp.*		437		2,945
Geron Corp.*		530		2,931
Micromet, Inc.*		428		2,876
Vivus, Inc.*		426		2,850
Orthofix International N.V.*		90		2,828
Zymogenetics, Inc.*		290		2,827
Abaxis, Inc.*		120		2,772
Greatbatch, Inc.*		118		2,736
Bio-Reference Labs, Inc.*		130		2,712
Kindred Healthcare, Inc.*		207		2,695
Targacept, Inc.*		120		2,681
RehabCare Group, Inc.*		130		2,629
Universal American Corp.		171		2,522
Air Methods Corp.*		60		2,495
NxStage Medical, Inc.*		130		2,483
Insulet Corp.*		170		2,404
Rigel Pharmaceuticals, Inc.*		279		2,346
SonoSite, Inc.*		70		2,346
Medivation, Inc.*		180		2,340
Conceptus, Inc.*		170		2,337
Alnylam Pharmaceuticals, Inc.*		187		2,296
Exelixis, Inc.*		580		2,274
Immunogen, Inc.*		360		2,257
Ariad Pharmaceuticals, Inc.*		590		2,254
ICU Medical, Inc.*		60		2,237
Natus Medical, Inc.*		152		2,215
NPS Pharmaceuticals, Inc.*		320		2,189
IPC The Hospitalist Company, Inc.*		80		2,186
Omnicell, Inc.*		166		2,171
Merit Medical Systems, Inc.*		136		2,161
Computer Programs & Systems, Inc.		50		2,128
Healthways, Inc.*		180		2,095
Accelrys, Inc.*		299		2,081
Select Medical Holdings Corp.*		270		2,079
Hanger Orthopedic Group, Inc.*		140		2,036
Angiodynamics, Inc.*		130		1,981
MannKind Corp.*		292		1,974
Allos Therapeutics, Inc.*		418		1,973
eResearchTechnology, Inc.*		260		1,945
Medidata Solutions, Inc.*		100		1,920
Inspire Pharmaceuticals, Inc.*		320		1,904
AMAG Pharmaceuticals, Inc.*		110		1,893
Emeritus Corp.*		110		1,877
Res-Care, Inc.*		140		1,858
Syneron Medical Ltd.*		187		1,855
Triple-S Management Corp. — Class B*		110		1,853

			MARKET
	SHARES		VALUE
Symmetry Medical, Inc.*		190	$	1,832
ABIOMED, Inc.*		170		1,804
Metabolix, Inc.*		140		1,761
Affymetrix, Inc.*		380		1,733
Emergent Biosolutions, Inc.*		100		1,726
Lexicon Pharmaceuticals, Inc.*		1,065		1,704
Accuray, Inc.*		268		1,667
Optimer Pharmaceuticals, Inc.*		178		1,632
LHC Group, Inc.*		70		1,623
Pharmacyclics, Inc.*		200		1,612
Ardea Biosciences, Inc.*		70		1,610
Neurocrine Biosciences, Inc.*		260		1,576
Atrion Corp.		10		1,575
Unilife Corp.*		260		1,568
PharMerica Corp.*		160		1,525
Assisted Living Concepts, Inc. — Class A*		50		1,522
National Healthcare Corp.		40		1,483
SIGA Technologies, Inc.*		170		1,438
Sequenom, Inc.*		205		1,437
MAKO Surgical Corp.*		144		1,380
Exact Sciences Corp.*		190		1,376
Quidel Corp.*		120		1,319
Keryx Biopharmaceuticals, Inc.*		270		1,299
Genoptix, Inc.*		90		1,278
Corvel Corp.*		30		1,273
Ensign Group, Inc.		70		1,256
Depomed, Inc.*		280		1,254
Cross Country Healthcare, Inc.*		173		1,244
AVANIR Pharmaceuticals, Inc. — Class A*		388		1,238
Dyax Corp.*		521		1,235
Akorn, Inc.*		298		1,204
Durect Corp.*		468		1,189
Almost Family, Inc.*		40		1,185
Pain Therapeutics, Inc.*		190		1,174
Endologix, Inc.*		257		1,172
Kensey Nash Corp.*		40		1,156
Nabi Biopharmaceuticals*		240		1,152
Providence Service Corp.*		70		1,147
Health Grades, Inc.*		140		1,147
Cantel Medical Corp.		70		1,134
Spectrum Pharmaceuticals, Inc.*		270		1,126
BMP Sunstone Corp.*		148		1,125
Arqule, Inc.*		218		1,123
Immunomedics, Inc.*		348		1,121
Medcath Corp.*		110		1,108
Cadence Pharmaceuticals, Inc.*		130		1,085
AVI BioPharma, Inc.*		589		1,084
BioScrip, Inc.*		210		1,084
Molina Healthcare, Inc.*		40		1,080
Cytori Therapeutics, Inc.*		220		1,076
SurModics, Inc.*		90		1,073
MAP Pharmaceuticals, Inc.*		70		1,071
Opko Health, Inc.*		478		1,071

110    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Genomic Health, Inc.*		80	$	1,069
XenoPort, Inc.*		150		1,066
Chindex International, Inc.*		70		1,058
Vascular Solutions, Inc.*		90		1,033
Team Health Holdings, Inc.*		80		1,033
Sunrise Senior Living, Inc.*		300		1,029
Ironwood Pharmaceuticals, Inc. — Class A*		100		1,018
Clarient, Inc.*		300		1,014
Maxygen, Inc.*		175		1,013
OraSure Technologies, Inc.*		250		1,012
Vanda Pharmaceuticals, Inc.*		150		1,002
Ligand Pharmaceuticals, Inc. — Class B*		633		1,000
Pozen, Inc.*		140		991
AGA Medical Holdings, Inc.*		70		977
Spectranetics Corp.*		180		976
ZIOPHARM Oncology, Inc.*		260		975
American Dental Partners, Inc.*		80		965
Staar Surgical Co.*		178		963
Caliper Life Sciences, Inc.*		240		958
Orexigen Therapeutics, Inc.*		160		949
Obagi Medical Products, Inc.*		90		945
Array Biopharma, Inc.*		290		937
Vital Images, Inc.*		70		926
AMN Healthcare Services, Inc.*		180		925
Delcath Systems, Inc.*		128		924
TomoTherapy, Inc.*		260		915
CryoLife, Inc.*		150		910
Synovis Life Technologies, Inc.*		60		897
Eurand N.V.*		90		886
Chelsea Therapeutics International, Ltd.*		170		870
Five Star Quality Care, Inc.*		170		859
Jazz Pharmaceuticals, Inc.*		80		858
Young Innovations, Inc.		30		858
Rural*		100		851
Novavax, Inc.*		388		850
Santarus, Inc.*		280		843
US Physical Therapy, Inc.*		50		836
Palomar Medical Technologies, Inc.*		80		826
Sangamo Biosciences, Inc.*		240		823
Orthovita, Inc.*		357		810
Hi-Tech Pharmacal Company, Inc.*		40		810
Cypress Bioscience, Inc.*		210		808
Cerus Corp.*		210		806
Merge Healthcare, Inc.*		277		803
Metropolitan Health Networks, Inc.*		209		794
BioCryst Pharmaceuticals, Inc.*		160		790
IRIS International, Inc.*		80		768
Albany Molecular Research, Inc.*		120		766
RTI Biologics, Inc.*		290		763
Transcend Services, Inc.*		50		762

			MARKET
	SHARES		VALUE
Progenics Pharmaceuticals, Inc.*		150	$	757
Capital Senior Living Corp.*		140		746
Kendle International, Inc.*		80		746
Omeros Corp.*		100		729
MELA Sciences, Inc.*		110		717
Dynavax Technologies Corp.*		380		695
Alliance HealthCare Services, Inc.*		150		687
Enzo Biochem, Inc.*		180		684
Celldex Therapeutics, Inc.*		170		680
Cambrex Corp.*		160		680
Sun Healthcare Group, Inc.*		80		678
Clinical Data, Inc.*		40		675
Continucare Corp.*		160		672
Vical, Inc.*		300		669
Cytokinetics, Inc.*		250		660
Osiris Therapeutics, Inc.*		90		655
Affymax, Inc.*		110		654
Exactech, Inc.*		40		653
Accretive Health, Inc.*		60		650
Solta Medical, Inc.*		320		640
Medical Action Industries, Inc.*		70		633
SuperGen, Inc.*		300		627
Arena Pharmaceuticals, Inc.*		396		622
Stereotaxis, Inc.*		150		621
Allied Healthcare International, Inc.*		240		600
America Service Group, Inc.		40		595
Idenix Pharmaceuticals, Inc.*		190		589
CardioNet, Inc.*		130		586
Somaxon Pharmaceuticals, Inc.*		148		576
Alphatec Holdings, Inc.*		270		575
Curis, Inc.*		414		567
Cutera, Inc.*		70		567
Furiex Pharmaceuticals, Inc.*		50		564
LCA-Vision, Inc.*		100		557
AVEO Pharmaceuticals, Inc.*		50		557
Antares Pharma, Inc.*		380		551
Rochester Medical Corp.*		50		545
Biospecifics Technologies Corp.*		20		538
Inovio Pharmaceuticals, Inc.*		430		537
StemCells, Inc.*		639		530
Sciclone Pharmaceuticals, Inc.*		200		528
MedQuist, Inc.*		60		526
Biotime, Inc.*		110		522
Cynosure, Inc. — Class A*		50		510
Alexza Pharmaceuticals, Inc.*		160		507
Synta Pharmaceuticals Corp.*		121		483
Biodel, Inc.*		90		477
Inhibitex, Inc.*		260		468
Corcept Therapeutics, Inc.*		120		467
Zalicus, Inc.*		350		455
Neuralstem, Inc.*		180		454
Nanosphere, Inc.*		90		453
CytRx Corp.*		590		442
PDI, Inc.*		50		437
Pure Bioscience*		188		434

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    111

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Skilled Healthcare Group, Inc. — Class A*		110	$	432
Prospect Medical Holdings, Inc.*		50		425
NeurogesX, Inc.*		60		415
Cumberland Pharmaceuticals, Inc.*		70		407
DynaVox, Inc. — Class A*		50		406
Biosante Pharmaceuticals, Inc.*		240		403
Aoxing Pharmaceutical Company, Inc.*		130		398
Infinity Pharmaceuticals, Inc.*		70		386
Alimera Sciences, Inc.*		40		383
Nymox Pharmaceutical Corp.*		100		357
BioMimetic Therapeutics, Inc.*		30		342
Hansen Medical, Inc.*		227		325
Peregrine Pharmaceuticals, Inc.*		220		319
Caraco Pharmaceutical Laboratories Ltd.*		50		269
National Research Corp.		10		261
Neostem, Inc.*		120		244
Lannett Company, Inc.*		50		229
Sucampo Pharmaceuticals, Inc. — Class A*		60		225
Cornerstone Therapeutics, Inc.*		30		212
Transcept Pharmaceuticals, Inc.*		30		209
Codexis, Inc.*		20		192
Anthera Pharmaceuticals, Inc.*		30		126
Acura Pharmaceuticals, Inc.*		50		124
AspenBio Pharma, Inc.*		190		97
Total Health Care				696,317
ENERGY - 2.6%
Brigham Exploration Co.*		628		11,775
Dril-Quip, Inc.*		180		11,180
Bill Barrett Corp.*		249		8,964
Complete Production Services, Inc.*		424		8,671
Berry Petroleum Co. — Class A		267		8,472
World Fuel Services Corp.		318		8,271
CARBO Ceramics, Inc.		100		8,100
McMoRan Exploration Co.*		447		7,693
Lufkin Industries, Inc.		160		7,024
Bristow Group, Inc.*		190		6,855
Nordic American Tanker Shipping		248		6,636
Rosetta Resources, Inc.*		280		6,577
Key Energy Services, Inc.*		672		6,391
Energy XXI Bermuda Ltd.*		270		6,240
Helix Energy Solutions Group, Inc.*		560		6,238
Swift Energy Co.*		200		5,616
Overseas Shipholding Group, Inc.		140		4,805
Patriot Coal Corp.*		420		4,792
Ship Finance International Ltd.		240		4,663
Tetra Technologies, Inc.*		407		4,151
Carrizo Oil & Gas, Inc.*		171		4,094
Northern Oil and Gas, Inc.*		240		4,066
Newpark Resources, Inc.*		478		4,015

			MARKET
	SHARES		VALUE
Gulfmark Offshore, Inc. — Class A*		130	$	3,994
Penn Virginia Corp.		239		3,834
International Coal Group, Inc.*		699		3,719
ION Geophysical Corp.*		680		3,495
Stone Energy Corp.*		230		3,388
ATP Oil & Gas Corp.*		240		3,276
USEC, Inc.*		614		3,187
RPC, Inc.		150		3,174
Cloud Peak Energy, Inc.*		170		3,102
Contango Oil & Gas Co.*		60		3,010
Clean Energy Fuels Corp.*		208		2,956
Global Industries Ltd.*		537		2,937
Cal Dive International, Inc.*		515		2,817
Petroleum Development Corp.*		100		2,760
Parker Drilling Co.*		620		2,697
James River Coal Co.*		148		2,594
Golar LNG Ltd.		197		2,466
Hornbeck Offshore Services, Inc.*		120		2,339
TransAtlantic Petroleum Ltd.*		790		2,338
Resolute Energy Corp.*		200		2,212
American Oil & Gas, Inc.*		270		2,187
Rex Energy Corp.*		170		2,176
Venoco, Inc.*		110		2,159
W&T Offshore, Inc.		190		2,014
BPZ Resources, Inc.*		520		1,992
Gulfport Energy Corp.*		140		1,938
Tesco Corp.*		160		1,925
Energy Partners Ltd.*		160		1,922
Goodrich Petroleum Corp.*		130		1,894
Pioneer Drilling Co.*		290		1,850
Harvest Natural Resources, Inc.*		177		1,844
T-3 Energy Services, Inc.*		70		1,830
Teekay Tankers Ltd. — Class A		140		1,821
Petroquest Energy, Inc.*		298		1,815
Crosstex Energy, Inc.*		220		1,738
Apco Oil and Gas International, Inc.		50		1,730
Hercules Offshore, Inc.*		618		1,638
Vaalco Energy, Inc.*		267		1,533
Clayton Williams Energy, Inc.*		30		1,518
Knightsbridge Tankers Ltd.		80		1,512
Warren Resources, Inc.*		380		1,509
Western Refining, Inc.*		277		1,451
CVR Energy, Inc.*		160		1,320
Gulf Island Fabrication, Inc.		70		1,274
Willbros Group, Inc.*		137		1,256
Matrix Service Co.*		140		1,225
Kodiak Oil & Gas Corp.*		360		1,220
OYO Geospace Corp.*		20		1,158
Rentech, Inc.*		1,160		1,144
PHI, Inc.*		70		1,133
Georesources, Inc.*		70		1,113
Green Plains Renewable Energy, Inc.*		90		1,090

112    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Uranium Energy Corp.*		331	$	1,086
DHT Holdings, Inc.		260		1,074
Natural Gas Services Group, Inc.*		70		1,034
Abraxas Petroleum Corp.*		360		1,022
Basic Energy Services, Inc.*		120		1,022
Houston American Energy Corp.		100		1,000
Panhandle Oil and Gas, Inc. — Class A		40		988
Endeavour International Corp.*		760		980
FX Energy, Inc.*		228		944
Gastar Exploration Ltd.*		230		925
Magnum Hunter Resources Corp.*		220		911
CAMAC Energy, Inc.*		260		829
Dawson Geophysical Co.*		30		799
Scorpio Tankers, Inc.*		70		790
Allis-Chalmers Energy, Inc.*		188		784
Approach Resources, Inc.*		70		783
GMX Resources, Inc.*		160		778
Cheniere Energy, Inc.*		308		776
Delta Petroleum Corp.*		986		776
Callon Petroleum Co.*		147		728
Syntroleum Corp.*		368		688
Vantage Drilling Co.*		412		659
L&L Energy, Inc.*		70		561
Miller Petroleum, Inc.*		100		539
Delek US Holdings, Inc.		70		501
Evolution Petroleum Corp.*		80		481
RAM Energy Resources, Inc.*		300		468
Seahawk Drilling, Inc.*		50		423
General Maritime Corp.		85		417
Union Drilling, Inc.*		80		358
Global Geophysical Services, Inc.*		40		292
Hallador Energy Co.		20		233
Alon USA Energy, Inc.		40		216
Golar LNG Energy, Ltd.*		28		42
Total Energy				291,420
MATERIALS - 2.5%
WR Grace & Co.*		388		10,841
Rock-Tenn Co. — Class A		210		10,460
Solutia, Inc.*		647		10,365
Coeur d’Alene Mines Corp.*		470		9,362
Silgan Holdings, Inc.		290		9,193
Rockwood Holdings, Inc.*		279		8,780
Olin Corp.		418		8,427
Sensient Technologies Corp.		270		8,232
Thompson Creek Metals Company, Inc.*		750		8,085
Hecla Mining Co.*		1,198		7,571
Golden Star Resources Ltd.*		1,380		6,817
PolyOne Corp.*		500		6,045
Ferro Corp.*		460		5,929
Minerals Technologies, Inc.		100		5,892
NewMarket Corp.		50		5,684
Schweitzer-Mauduit International, Inc.		90		5,248

			MARKET
	SHARES		VALUE
OM Group, Inc.*		174	$	5,241
Louisiana-Pacific Corp.*		680		5,148
HB Fuller Co.		257		5,107
RTI International Metals, Inc.*		160		4,899
Worthington Industries, Inc.		325		4,885
Allied Nevada Gold Corp.*		177		4,691
Globe Specialty Metals, Inc.		330		4,633
Balchem Corp.		150		4,629
Century Aluminum Co.*		338		4,451
Calgon Carbon Corp.*		300		4,350
Arch Chemicals, Inc.		117		4,106
Innophos Holdings, Inc.		121		4,005
Stillwater Mining Co.*		237		3,991
Clearwater Paper Corp.*		50		3,804
Texas Industries, Inc.		110		3,467
A. Schulman, Inc.		170		3,426
Kaiser Aluminum Corp.		80		3,423
Westlake Chemical Corp.		110		3,292
STR Holdings, Inc.*		150		3,231
AMCOL International Corp.		120		3,143
Buckeye Technologies, Inc.		210		3,089
Brush Engineered Materials, Inc.*		107		3,043
PH Glatfelter Co.		247		3,004
Koppers Holdings, Inc.		110		2,956
Georgia Gulf Corp.*		180		2,941
Jaguar Mining, Inc.*		450		2,925
KapStone Paper and Packaging Corp.*		210		2,549
Boise, Inc.*		377		2,447
US Gold Corp.*		481		2,391
Horsehead Holding Corp.*		230		2,270
Deltic Timber Corp.		50		2,240
Wausau Paper Corp.*		260		2,155
Haynes International, Inc.		60		2,095
Zep, Inc.		118		2,058
Graphic Packaging Holding Co.*		598		1,997
Quaker Chemical Corp.		60		1,954
Stepan Co.		30		1,773
Hawkins, Inc.		50		1,771
Omnova Solutions, Inc.*		240		1,726
LSB Industries, Inc.*		90		1,671
Myers Industries, Inc.		190		1,632
Kraton Performance Polymers, Inc.*		60		1,629
Zoltek Companies, Inc.*		150		1,458
Spartech Corp.*		172		1,412
General Moly, Inc.*		346		1,266
AM Castle & Co.*		90		1,193
Headwaters, Inc.*		324		1,166
Olympic Steel, Inc.		50		1,149
Neenah Paper, Inc.		70		1,064
Graham Packaging Company, Inc.*		90		1,064
Landec Corp.*		140		869
Senomyx, Inc.*		210		836
Universal Stainless & Alloy*		30		737
Capital Gold Corp.*		150		725

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    113

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
TPC Group, Inc.*		30	$	715
American Vanguard Corp.		106		655
Metals USA Holdings Corp.*		50		649
US Energy Corp.*		140		636
AEP Industries, Inc.*		20		472
Noranda Aluminum Holding Corp.*		50		411
United States Lime & Minerals, Inc.*		10		387
KMG Chemicals, Inc.		20		282
NL Industries, Inc.		30		272
Verso Paper Corp.*		70		202
Total Materials				278,789
UTILITIES - 1.6%
Piedmont Natural Gas Co., Inc.		390		11,310
Nicor, Inc.		238		10,905
WGL Holdings, Inc.		270		10,201
Cleco Corp.		327		9,686
IDACORP, Inc.		260		9,339
New Jersey Resources Corp.		220		8,628
Portland General Electric Co.		398		8,071
Southwest Gas Corp.		240		8,062
South Jersey Industries, Inc.		160		7,915
Northwest Natural Gas Co.		140		6,643
Black Hills Corp.		210		6,552
Unisource Energy Corp.		190		6,352
Allete, Inc.		170		6,193
Avista Corp.		290		6,055
El Paso Electric Co.*		240		5,707
NorthWestern Corp.		190		5,415
PNM Resources, Inc.		468		5,331
MGE Energy, Inc.		118		4,672
UIL Holdings Corp.		160		4,506
Empire District Electric Co.		210		4,231
Laclede Group, Inc.		120		4,130
California Water Service Group		110		4,064
Otter Tail Corp.		190		3,874
CH Energy Group, Inc.		80		3,533
American States Water Co.		90		3,220
Dynegy, Inc. — Class A*		550		2,679
Chesapeake Utilities Corp.		50		1,811
SJW Corp.		70		1,724
Connecticut Water Service, Inc.		50		1,197
Unitil Corp.		50		1,098
Central Vermont Public Service Corp.		50		1,008
York Water Co.		60		962
Middlesex Water Co.		50		842
Consolidated Water Company Ltd.		70		664
Cadiz, Inc.*		60		616
Artesian Resources Corp. —
Class A		30		572
American DG Energy, Inc.*		100		298
Total Utilities				178,066

			MARKET
	SHARES		VALUE
CONSUMER STAPLES - 1.4%
Casey’s General Stores, Inc.		270	$	11,272
TreeHouse Foods, Inc.*		190		8,759
Ruddick Corp.		230		7,976
United Natural Foods, Inc.*		230		7,622
Nu Skin Enterprises, Inc. — Class A		257		7,402
Hain Celestial Group, Inc.*		220		5,276
Universal Corp.		130		5,212
Sanderson Farms, Inc.		120		5,195
Diamond Foods, Inc.		120		4,919
Lancaster Colony Corp.		100		4,750
Fresh Del Monte Produce, Inc.*		207		4,492
Vector Group Ltd.		239		4,469
Darling International, Inc.*		440		3,749
Andersons, Inc.		90		3,411
Boston Beer Company, Inc. —
Class A*		50		3,344
Tootsie Roll Industries, Inc.		130		3,234
Chiquita Brands International, Inc.*		240		3,178
Central Garden and Pet Co. —
Class A*		300		3,108
WD-40 Co.		80		3,042
Lance, Inc.		140		2,982
Pantry, Inc.*		123		2,966
J&J Snack Foods Corp.		70		2,935
B&G Foods, Inc. — Class A		260		2,839
Rite Aid Corp.*		2,990		2,820
Nash Finch Co.		60		2,552
Elizabeth Arden, Inc.*		126		2,519
Spectrum Brands Holdings, Inc.*		90		2,446
Weis Markets, Inc.		60		2,348
Pricesmart, Inc.		80		2,330
Prestige Brands Holdings, Inc.*		220		2,176
Winn-Dixie Stores, Inc.*		297		2,118
Cal-Maine Foods, Inc.		70		2,029
Alliance One International, Inc.*		476		1,975
Medifast, Inc.*		70		1,899
Heckmann Corp.*		480		1,872
Spartan Stores, Inc.		120		1,740
Dole Food Company, Inc.*		190		1,738
Pilgrim’s Pride Corp.*		260		1,461
Smart Balance, Inc.*		340		1,319
Calavo Growers, Inc.		60		1,301
Inter Parfums, Inc.		70		1,231
Star Scientific, Inc.*		520		1,092
Seneca Foods Corp. — Class A*		40		1,048
Ingles Markets, Inc. — Class A		60		997
National Beverage Corp.		60		840
Village Super Market, Inc. —
Class A		30		838
Synutra International, Inc.*		70		808
USANA Health Sciences, Inc.*		20		807
Limoneira Co.		40		806
Nutraceutical International Corp.*		50		784
Great Atlantic & Pacific Tea Co.*		170		673

114    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  RUSSELL 2000^® FUND

			MARKET
	SHARES		VALUE
Imperial Sugar Co.		50	$	654
Oil-Dri Corporation of America		30		645
Revlon, Inc. — Class A*		50		631
Susser Holdings Corp.*		40		560
Coca-Cola Bottling Company Consolidated		10		529
Schiff Nutrition International, Inc.		60		492
Farmer Bros Co.		30		480
Cellu Tissue Holdings, Inc.*		40		477
MGP Ingredients, Inc.		60		471
Alico, Inc.		20		465
Female Health Co.		90		463
John B. Sanfilippo & Son, Inc.*		30		396
Nature’s Sunshine Products, Inc.*		40		358
Lifeway Foods, Inc.*		30		316
Harbinger Group, Inc.*		50		278
Griffin Land & Nurseries, Inc.		10		264
Bridgford Foods Corp.		10		128
Total Consumer Staples				164,306
TELECOMMUNICATION SERVICES - 0.5%
Syniverse Holdings, Inc.*		375		8,501
AboveNet, Inc.*		120		6,251
Cincinnati Bell, Inc.*		1,080		2,884
PAETEC Holding Corp.*		679		2,791
NTELOS Holdings Corp.		160		2,707
General Communication, Inc. — Class A*		260		2,592
Atlantic Tele-Network, Inc.		50		2,462
Alaska Communications Systems Group, Inc.		240		2,436
Consolidated Communications Holdings, Inc.		130		2,427
Shenandoah Telecommunications Co.		130		2,362
Cogent Communications Group, Inc.*		240		2,273
Premiere Global Services, Inc.*		318		2,251
Neutral Tandem, Inc.*		177		2,115
Global Crossing Ltd.*		160		2,058
USA Mobility, Inc.		120		1,924
Cbeyond, Inc.*		140		1,796
Iridium Communications, Inc.*		180		1,537
Vonage Holdings Corp.*		570		1,454
IDT Corp. — Class B*		70		1,245
FiberTower Corp.*		210		890
ICO Global Communications Holdings Ltd.*		510		836
Globalstar, Inc.*		370		644
Total Telecommunication Services				54,436
Total Common Stocks (Cost $4,918,178)				5,341,509

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 120.3%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	4,673,239	$	4,673,239
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		4,668,036		4,668,036
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		1,928,940		1,928,940
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		1,815,329		1,815,329
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		482,235		482,235
Total Repurchase Agreements (Cost $13,567,779)				13,567,779
Total Investments – 167.6% (Cost $18,485,957)			$	18,909,288
Liabilities, Less Cash & Other Assets – (67.6)%				(7,629,762	)
Net Assets – 100.0%			$	11,279,526

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    115

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  RUSSELL 2000^® FUND

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED†
December 2010 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of
Contracts $1,278,130)		19	$	43,926
		UNITS
EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2010 Russell 2000 Index Swap, Terminating 10/27/103 (Notional Market Value
$2,469,164)		3,652	$	33,489
Morgan Stanley Capital Services, Inc. October 2010 Russell 2000 Index Swap, Terminating 10/26/103 (Notional Market Value
$501,786		742		6,073
Credit Suisse Capital, LLC October 2010 Russell 2000 Index Swap, Terminating 10/29/103 (Notional Market Value
$1,696,976)		2,510		(3,739	)
(Total Notional Market Value $4,667,926)			$	35,823

*	Non-Income Producing Security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on Russell 2000 Index +/- financing at a variable rate. plc—Public Limited Company

116    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  RUSSELL 2000^® FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	5,341,509
Repurchase agreement, at value		13,567,779
Total investments		18,909,288
Segregated cash with broker		328,136
Cash		28
Unrealized appreciation on swap agreements		39,562
Receivable for swap settlement		67,808
Receivables:
Securities sold		6,600
Fund shares sold		1,001,873
Dividends		5,943
Interest		74
Total assets		20,359,312
Liabilities:
Unrealized depreciation on swap agreements		3,739
Payable for:
Variation margin		22,234
Fund shares redeemed		9,004,179
Management fees		8,118
Custodian fees		357
Transfer agent/maintenance fees		2,706
Distribution and service fees		5,432
Portfolio accounting fees		1,082
Other		31,939
Total liabilities		9,079,786
Net assets	$	11,279,526
Net assets consist of:
Paid in capital		24,654,944
Accumulated net investment loss		(119,593	)
Accumulated net realized loss on sale of investments		(13,758,905	)
Net unrealized appreciation in value of investments		503,080
Net assets		11,279,526
A-Class:
Net assets	$	1,191,553
Capital shares outstanding		52,060
Net asset value per share		$22.89
Maximum offering price per share*		$24.03
C-Class:
Net assets	$	4,307,870
Capital shares outstanding		194,828
Net asset value per share		$22.11
H-Class:
Net assets	$	5,780,103
Capital shares outstanding		252,730
Net asset value per share		$22.87
Investments, at cost	$	4,918,178
Repurchase agreement, at cost		13,567,779
Total cost	$	18,485,957

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $5)	$	59,165
Interest		10,726
Total investment income		69,891
Expenses:
Management fees		83,604
Transfer agent and administrative fees		27,868
Distribution and Service Fees:
A-Class		1,442
C-Class		18,966
H-Class		21,685
Portfolio accounting fees		11,147
Trustees’ fees**		1,053
Registration		30,746
Miscellaneous		(8,435	)
Total expenses		188,076
Net investment loss		(118,185	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		488,022
Equity index swaps		326,397
Futures contracts		(1,114,686	)
Net realized loss		(300,267	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(1,862,723	)
Equity index swaps		(274,387	)
Futures contracts		68,013
Net unrealized depreciation		(2,069,097	)
Net loss		(2,369,364	)
Net decrease in net assets resulting from operations	$	(2,487,549	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    117

  RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(118,185	)	$	(131,477	)
Net realized gain (loss) during the period on investments		(300,267	)		3,504,542
Net unrealized appreciation (depreciation) during the period on investments		(2,069,097	)		2,761,372
Net increase (decrease) in net assets resulting from operations		(2,487,549	)		6,134,437
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		2,860,327			11,787,474
C-Class		40,637,486			92,157,139
H-Class		172,460,238			189,633,766
Cost of shares redeemed
A-Class		(2,963,695	)		(13,816,879	)
C-Class		(39,097,778	)		(92,420,348	)
H-Class		(197,092,100	)		(180,791,186	)
Net increase (decrease) from capital share transactions		(23,195,522	)		6,549,966
Net increase (decrease) in net assets		(25,683,071	)		12,684,403
Net assets:
Beginning of period		36,962,597			24,278,194
End of period	$	11,279,526		$	36,962,597
Accumulated net investment loss at end of period	$	(119,593	)	$	(1,408	)
Capital share activity:
Shares sold
A-Class		129,220			614,405
C-Class		1,869,842			4,881,947
H-Class		7,752,691			9,547,973
Shares redeemed
A-Class		(134,360	)		(718,503	)
C-Class		(1,803,333	)		(4,905,249	)
H-Class		(8,929,710	)		(9,505,283	)
Total capital share activity		(1,115,650	)		(84,710	)

118    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  RUSSELL 2000^® FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007		b
Per Share Data
Net asset value, beginning of period		$22.96			$14.31			$23.57			$27.64			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.10	)		(.15	)		(.02	)		.34			.35
Net gain (loss) on securities (realized and unrealized)		.03			8.80			(9.24	)		(4.21	)		2.43
Total from investment operations		(.07	)		8.65			(9.26	)		(3.87	)		2.78
Less distributions:
Distributions from net investment income		—			—			—			(.20	)		(.14	)
Total distributions		—			—			—			(.20	)		(.14	)
Net asset value, end of period		$22.89			$22.96			$14.31			$23.57			$27.64
Total Returnd		(0.30%	)		60.45%			(39.29%	)		(14.08%	)		11.13%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,192			$1,313			$2,309			$909			$275
Ratios to average net assets:
Net investment income (loss)		(0.88%	)		(0.81%	)		(0.13%	)		1.26%			1.54%	e
Total expenses		1.55%			1.57%			1.56%			1.51%			1.51%	e
Portfolio turnover rate		224%			370%			485%			535%			335%

	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007		b
Per Share Data
Net asset value, beginning of period		$22.29			$14.00			$23.28			$27.48			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.19	)		(.34	)		(.15	)		.23			.17
Net gain (loss) on securities (realized and unrealized)		.01			8.63			(9.13	)		(4.23	)		2.45
Total from investment operations		(.18	)		8.29			(9.28	)		(4.00	)		2.62
Less distributions:
Distributions from net investment income		—			—			—			(.20	)		(.14	)
Total distributions		—			—			—			(.20	)		(.14	)
Net asset value, end of period		$22.11			$22.29			$14.00			$23.28			$27.48
Total Returnd		(0.76%	)		59.21%			(39.86%	)		(14.63%	)		10.49%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,308			$2,860			$2,123			$678			$739
Ratios to average net assets:
Net investment income (loss)		(1.66%	)		(1.56%	)		(0.82%	)		0.85%			0.76%	e
Total expenses		2.30%			2.30%			2.29%			2.27%			2.28%	e
Portfolio turnover rate		224%			370%			485%			535%			335%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    119

  RUSSELL 2000^® FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007		b
Per Share Data
Net asset value, beginning of period		$22.93			$14.31			$23.57			$27.64			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.11	)		(.16	)		(.02	)		.51			.34
Net gain (loss) on securities (realized and unrealized)		.05			8.78			(9.24	)		(4.38	)		2.44
Total from investment operations		(.06	)		8.62			(9.26	)		(3.87	)		2.78
Less distributions:
Distributions from net investment income		—			—			—			(.20	)		(.14	)
Total distributions		—			—			—			(.20	)		(.14	)
Net asset value, end of period		$22.87			$22.93			$14.31			$23.57			$27.64
Total Returnd		(0.26%	)		60.24%			(39.29%	)		(14.08%	)		(11.13%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,780			$32,790			$19,847			$4,327			$13,248
Ratios to average net assets:
Net investment income (loss)		(0.94%	)		(0.83%	)		(0.09%	)		1.86%			1.55%	e
Total expenses		1.56%			1.56%			1.55%			1.52%			1.52%	e
Portfolio turnover rate		224%			370%			485%			535%			335%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations May 31, 2006.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Annualized

120    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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 derivative investments such as equity index swap agreements and futures contracts.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    121

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INVERSE RUSSELL 2000^® STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 96.9%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	9,597,604	$	9,597,604
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		9,586,919		9,586,919
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		7,595,072		7,595,072
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		3,961,537		3,961,537
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		990,384		990,384
Total Repurchase Agreements
(Cost $31,731,516)				31,731,516
Total Investments – 96.9%
(Cost $31,731,516)			$	31,731,516
Cash & Other Assets,
Less Liabilities – 3.1%				999,024
Total Net Assets – 100.0%			$	32,730,540

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS SOLD SHORT†
December 2010 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of
Contracts $134,540)		2	$	(983	)
		UNITS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisee Capital, LLC October 2010 Russell 2000 Index Swap, Terminating 10/29/103 (Notional Market Value
$24,895,825)		36,821	$	54,240
Goldman Sachs International October 2010 Russell 2000 Index Swap, Terminating 10/27/103 (Notional Market Value
$1,810,434)		2,678		(21,924	)
Morgan Stanley Capital Services, Inc. October 2010 Russell 2000 Index Swap, Terminating 10/26/103 (Notional Market Value
$5,846,201)		8,646		(71,355	)
(Total Notional Market Value
$32,552,460)			$	(39,039	)

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2010.
3	Total Return based on Russell 2000 Index +/- financing at a variable rate.

122    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	31,731,516
Total investments		31,731,516
Segregated cash with broker		940,397
Unrealized appreciation on swap agreements		54,240
Receivables:
Variation margin		580
Fund shares sold		177,571
Interest		171
Total assets		32,904,475
Liabilities:
Unrealized depreciation on swap agreements		93,279
Payable for:
Fund shares redeemed		12,025
Management fees		31,376
Custodian fees		1,151
Transfer agent/maintenance fees		8,715
Distribution and service fees		9,998
Portfolio accounting fees		3,486
Other		13,905
Total liabilities		173,935
Net assets	$	32,730,540
Net assets consist of:
Paid in capital		78,914,464
Accumulated net investment loss		(265,284	)
Accumulated net realized loss on sale of investments		(45,878,618	)
Net unrealized depreciation in value of investments		(40,022	)
Net assets		32,730,540
A-Class:
Net assets	$	1,853,998
Capital shares outstanding		72,759
Net asset value per share		$25.48
Maximum offering price per share*		$26.75
C-Class:
Net assets	$	1,920,540
Capital shares outstanding		79,328
Net asset value per share		$24.21
H-Class:
Net assets	$	28,956,002
Capital shares outstanding		1,135,705
Net asset value per share		$25.50
Repurchase agreement, at cost	$	31,731,516
Total cost	$	31,731,516

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	28,942
Total investment income		28,942
Expenses:
Management fees		150,527
Transfer agent and administrative fees		41,813
Distribution and Service Fees:
A-Class		2,568
C-Class		12,379
H-Class		36,150
Portfolio accounting fees		16,725
Trustees’ fees**		952
Miscellaneous		33,112
Total expenses		294,226
Net investment loss		(265,284	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Equity index swaps		(2,958,206	)
Futures contracts		(1,172,400	)
Net realized loss		(4,130,606	)
Net unrealized appreciation (depreciation)
during the period on:
Equity index swaps		241,585
Futures contracts		(16,731	)
Net unrealized appreciation		224,854
Net loss		(3,905,752	)
Net decrease in net assets resulting
from operations	$	(4,171,036	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    123

  INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(265,284	)	$	(436,855	)
Net realized loss during the period on investments		(4,130,606	)		(17,785,252	)
Net unrealized appreciation (depreciation) during the period on investments		224,854			(427,116	)
Net decrease in net assets resulting from operations		(4,171,036	)		(18,649,223	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		6,248,380			12,458,139
C-Class		13,947,855			12,315,911
H-Class		255,388,517			190,565,372
Cost of shares redeemed
A-Class		(5,810,908	)		(11,468,508	)
C-Class		(13,801,565	)		(11,307,586	)
H-Class		(248,763,348	)		(178,850,918	)
Net increase from capital share transactions		7,208,931			13,712,410
Net increase (decrease) in net assets		3,037,895			(4,936,813	)
Net assets:
Beginning of period		29,692,645			34,629,458
End of period	$	32,730,540		$	29,692,645
Accumulated net investment loss at end of period	$	(265,284	)	$	—
Capital share activity:
Shares sold
A-Class		230,994			362,535
C-Class		516,412			364,847
H-Class		9,285,220			5,855,590
Shares redeemed
A-Class		(223,589	)		(345,066	)
C-Class		(514,881	)		(334,695	)
H-Class		(9,109,289	)		(5,522,935	)
Total capital share activity		184,867			380,276

124    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

1

  INVERSE RUSSELL 2000^® STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.00			$48.02			$39.05			$35.00			$36.96			$46.09
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.54	)		(.21	)		1.06			1.38			.85
Net gain (loss) on securities (realized and unrealized)		(1.31	)		(20.48	)		9.57			4.40			(1.65	)		(9.26	)
Total from investment operations		(1.52	)		(21.02	)		9.36			5.46			(.27	)		(8.41	)
Less distributions:
Distributions from net investment income		—			—			(.39	)		(1.41	)		(1.69	)		(.72	)
Total distributions		—			—			(.39	)		(1.41	)		(1.69	)		(.72	)
Net asset value, end of period		$25.48			$27.00			$48.02			$39.05			$35.00			$36.96
Total Returnc		(5.63%	)		(43.77%	)		23.91%			16.11%			(0.67%	)		(18.40%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,854			$1,765			$2,299			$6,816			$9,905			$1,067
Ratios to average net assets:
Net investment income (loss)		(1.54%	)		(1.58%	)		(0.50%	)		2.96%			3.64%			1.97%
Total expenses		1.71%			1.71%			1.96%			1.89%			1.65%			1.63%
Operating expensesd		1.71%			1.71%			1.71%			1.89%			1.65%			1.63%
Portfolio turnover rate		—			—			214%			—			—			—

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.75			$46.15			$37.80			$34.18			$36.40			$45.71
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.76	)		(.40	)		.76			1.07			.56
Net gain (loss) on securities (realized and unrealized)		(1.24	)		(19.64	)		9.14			4.27			(1.60	)		(9.15	)
Total from investment operations		(1.54	)		(20.40	)		8.74			5.03			(.53	)		(8.59	)
Less distributions:
Distributions from net investment income		—			—			(.39	)		(1.41	)		(1.69	)		(.72	)
Total distributions		—			—			(.39	)		(1.41	)		(1.69	)		(.72	)
Net asset value, end of period		$24.21			$25.75			$46.15			$37.80			$34.18			$36.40
Total Returnc		(5.98%	)		(44.20%	)		23.06%			15.22%			(1.40%	)		(18.95%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,921			$2,003			$2,199			$6,136			$8,455			$3,164
Ratios to average net assets:
Net investment income (loss)		(2.28%	)		(2.43%	)		(1.03%	)		2.17%			2.87%			1.33%
Total expenses		2.45%			2.46%			2.76%			2.67%			2.40%			2.40%
Operating expensesd		2.45%			2.46%			2.45%			2.67%			2.40%			2.40%
Portfolio turnover rate		—			—			214%			—			—			—

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    125

2

  INVERSE RUSSELL 2000^® STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.01			$48.05			$39.07			$35.02			$36.98			$46.09
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.53	)		(.19	)		1.05			1.36			.91
Net gain (loss) on securities (realized and unrealized)		(1.30	)		(20.51	)		9.56			4.41			(1.63	)		(9.30	)
Total from investment operations		(1.51	)		(21.04	)		9.37			5.46			(.27	)		(8.39	)
Less distributions:
Distributions from net investment income		—			—			(.39	)		(1.41	)		(1.69	)		(.72	)
Total distributions		—			—			(.39	)		(1.41	)		(1.69	)		(.72	)
Net asset value, end of period		$25.50			$27.01			$48.05			$39.07			$35.02			$36.98
Total Returnc		(5.59%	)		(43.79%	)		23.93%			16.10%			(0.67%	)		(18.36%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$28,956			$25,924			$30,131			$42,554			$48,718			$52,201
Ratios to average net assets:
Net investment income (loss)		(1.53%	)		(1.58%	)		(0.45%	)		2.93%			3.56%			2.14%
Total expenses		1.70%			1.71%			1.97%			1.89%			1.65%			1.65%
Operating expensesd		1.70%			1.71%			1.70%			1.89%			1.65%			1.65%
Portfolio turnover rate		—			—			214%			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Operating expenses exclude interest and dividend expense from securities sold short.

126    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

FUND PROFILE (Unaudited)

September 30, 2010

S&P 500 PURE GROWTH FUND

OBJECTIVE: To provide investment results that match the performance of a benchmark for large-cap growth securities. The Fund’s current benchmark is the S&P 500 Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Priceline.com, Inc.	2.5	%
Red Hat, Inc.	2.5	%
Salesforce.com, Inc.	2.5	%
Akamai Technologies, Inc.	2.3	%
Cognizant Technology Solutions Corp. — Class A	2.2	%
NetApp, Inc.	2.1	%
Amazon.com, Inc.	2.0	%
Apple, Inc.	1.7	%
Cliffs Natural Resources, Inc.	1.5	%
Wynn Resorts Ltd.	1.5	%
Top Ten Total	20.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    127

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  S&P 500 PURE GROWTH FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
INFORMATION TECHNOLOGY - 29.1%
Red Hat, Inc.*		41,824	$	1,714,784
Salesforce.com, Inc.*		15,230		1,702,714
Akamai Technologies, Inc.*		31,394		1,575,351
Cognizant Technology Solutions Corp. — Class A*		23,545		1,517,946
NetApp, Inc.*		28,157		1,401,937
Apple, Inc.*		4,110		1,166,212
eBay, Inc.*		35,895		875,838
Google, Inc. — Class A*		1,549		814,449
Amphenol Corp. — Class A		14,968		733,133
Broadcom Corp. — Class A		20,319		719,089
EMC Corp.*		32,555		661,192
Western Digital Corp.*		22,569		640,734
Visa, Inc. — Class A		8,427		625,789
Citrix Systems, Inc.*		9,013		615,047
Juniper Networks, Inc.*		18,883		573,099
Teradata Corp.*		13,864		534,596
QLogic Corp.*		29,073		512,848
Oracle Corp.		16,369		439,508
McAfee, Inc.*		8,561		404,593
Corning, Inc.		19,908		363,918
Altera Corp.		11,939		360,080
FLIR Systems, Inc.*		13,361		343,378
Autodesk, Inc.*		10,085		322,417
BMC Software, Inc.*		7,582		306,919
Microsoft Corp.		10,240		250,778
Adobe Systems, Inc.*		9,313		243,535
International Business Machines Corp.		1,735		232,733
NVIDIA Corp.*		14,942		174,523
Total Information Technology				19,827,140
CONSUMER DISCRETIONARY - 22.4%
Priceline.com, Inc.*		4,951		1,724,631
Amazon.com, Inc.*		8,622		1,354,171
Wynn Resorts Ltd.		11,867		1,029,700
Viacom, Inc. — Class B		25,814		934,209
Coach, Inc.		20,821		894,470
Nordstrom, Inc.		19,371		720,601
Starbucks Corp.		27,820		711,636
DIRECTV — Class A*		17,032		709,042
Best Buy Company, Inc.		17,023		695,049
CarMax, Inc.*		22,759		634,066
Tiffany & Co.		12,582		591,228
Urban Outfitters, Inc.*		17,228		541,648
Expedia, Inc.		17,653		497,991
O’Reilly Automotive, Inc.*		8,591		457,041
Ross Stores, Inc.		8,323		454,602
Bed Bath & Beyond, Inc.*		9,995		433,883
AutoZone, Inc.*		1,878		429,893
Abercrombie & Fitch Co. — Class A		10,748		422,612

			MARKET
	SHARES		VALUE
Polo Ralph Lauren Corp. —
Class A		4,625	$	415,603
Starwood Hotels & Resorts Worldwide, Inc.		6,921		363,699
Hasbro, Inc.		7,732		344,151
Wyndham Worldwide Corp.		12,205		335,271
TJX Companies, Inc.		6,983		311,651
Kohl’s Corp.*		4,925		259,449
Total Consumer Discretionary				15,266,297
ENERGY - 15.0%
Cameron International Corp.*		22,971		986,834
Rowan Companies, Inc.*		29,503		895,711
Denbury Resources, Inc.*		51,685		821,275
National Oilwell Varco, Inc.		18,195		809,132
FMC Technologies, Inc.*		10,694		730,293
Anadarko Petroleum Corp.		11,306		645,007
Massey Energy Co.		17,595		545,797
Peabody Energy Corp.		10,381		508,773
Pioneer Natural Resources Co.		7,635		496,504
Schlumberger Ltd.		7,915		487,643
Baker Hughes, Inc.		11,198		477,035
Southwestern Energy Co.*		14,029		469,130
Diamond Offshore Drilling, Inc.		6,715		455,075
Range Resources Corp.		11,311		431,288
EOG Resources, Inc.		4,377		406,930
Occidental Petroleum Corp.		4,610		360,963
Helmerich & Payne, Inc.		8,690		351,597
Noble Energy, Inc.		4,275		321,010
Total Energy				10,199,997
HEALTH CARE - 11.9%
Intuitive Surgical, Inc.*		3,300		936,342
CIGNA Corp.		23,146		828,164
Mylan, Inc.*		39,920		750,895
Cerner Corp.*		6,540		549,295
Biogen Idec, Inc.*		9,544		535,609
DaVita, Inc.*		6,597		455,391
Allergan, Inc.		6,778		450,940
Watson Pharmaceuticals, Inc.*		10,375		438,966
Express Scripts, Inc. — Class A*		8,562		416,969
Waters Corp.*		5,398		382,071
Celgene Corp.*		6,629		381,897
Life Technologies Corp.*		8,000		373,520
Gilead Sciences, Inc.*		9,631		342,960
Hospira, Inc.*		5,040		287,330
St. Jude Medical, Inc.*		6,923		272,351
Medco Health Solutions, Inc.*		5,045		262,643
Laboratory Corporation of America Holdings*		3,304		259,133
Zimmer Holdings, Inc.*		4,101		214,605
Total Health Care				8,139,081
FINANCIALS - 7.0%
Ventas, Inc.		16,928		872,977
ProLogis		70,322		828,393

128    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  S&P 500 PURE GROWTH FUND

			MARKET
	SHARES		VALUE
CB Richard Ellis Group, Inc. — Class A*		38,116	$	696,761
IntercontinentalExchange, Inc.*		6,159		644,971
Invesco Ltd.		23,115		490,731
Janus Capital Group, Inc.		29,411		322,050
American Express Co.		7,660		321,950
Hudson City Bancorp, Inc.		26,104		320,035
CME Group, Inc. — Class A		1,098		285,974
Total Financials				4,783,842
INDUSTRIALS - 6.6%
Flowserve Corp.		7,046		770,973
Precision Castparts Corp.		5,890		750,091
First Solar, Inc.*		3,156		465,037
Caterpillar, Inc.		5,740		451,623
Goodrich Corp.		5,225		385,239
Stericycle, Inc.*		4,714		327,529
Honeywell International, Inc.		7,340		322,519
WW Grainger, Inc.		2,251		268,117
ITT Corp.		5,636		263,934
Danaher Corp.		6,106		247,965
United Technologies Corp.		3,308		235,629
Total Industrials				4,488,656
MATERIALS - 5.7%
Cliffs Natural Resources, Inc.		16,366		1,046,115
CF Industries Holdings, Inc.		9,290		887,195
Freeport-McMoRan Copper & Gold, Inc. — Class B		8,353		713,263
MeadWestvaco Corp.		16,590		404,464
Newmont Mining Co.		5,063		318,007
FMC Corp.		3,966		271,314
Praxair, Inc.		2,777		250,652
Total Materials				3,891,010
CONSUMER STAPLES - 1.8%
Whole Foods Market, Inc.*		25,145		933,131
Avon Products, Inc.		9,228		296,311
Total Consumer Staples				1,229,442
Total Common Stocks
(Cost $59,360,314)				67,825,465

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 0.9%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		$239,159	$	239,159
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		238,893		238,893
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		98,716		98,716
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		25,221		25,221
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		24,679		24,679
Total Repurchase Agreements (Cost $626,668)				626,668
Total Investments – 100.4% (Cost $59,986,982)			$	68,452,133
Liabilities, Less Cash & Other Assets – (0.4)%				(294,183	)
Total Net Assets – 100.0%			$	68,157,950

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    129

  S&P 500 PURE GROWTH FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	67,825,465
Repurchase agreement, at value		626,668
Total investments		68,452,133
Receivables:
Fund shares sold		145,574
Dividends		14,801
Total assets		68,612,508
Liabilities:
Payable for:
Securities purchased		334,912
Fund shares redeemed		40,967
Management fees		31,496
Custodian fees		1,399
Transfer agent/maintenance fees		10,499
Distribution and service fees		14,515
Portfolio accounting fees		4,200
Other		16,570
Total liabilities		454,558
Net assets	$	68,157,950
Net assets consist of:
Paid in capital		71,042,731
Accumulated net investment loss		(163,455	)
Accumulated net realized loss on sale of investments		(11,186,477	)
Net unrealized appreciation in value of investments		8,465,151
Net assets		68,157,950
A-Class:
Net assets	$	11,454,721
Capital shares outstanding		419,062
Net asset value per share		$27.33
Maximum offering price per share*		$28.69
C-Class:
Net assets	$	7,095,515
Capital shares outstanding		272,811
Net asset value per share		$26.01
H-Class:
Net assets	$	49,607,714
Capital shares outstanding		1,815,485
Net asset value per share		$27.32
Investments, at cost	$	59,360,314
Repurchase agreement, at cost		626,668
Total cost	$	59,986,982

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	98,949
Interest		194
Total investment income		99,143
Expenses:
Management fees		118,303
Transfer agent and administrative fees		39,434
Distribution and Service Fees:
A-Class		3,815
C-Class		29,853
H-Class		28,156
Portfolio accounting fees		15,774
Trustees’ fees**		923
Miscellaneous		26,340
Total expenses		262,598
Net investment loss		(163,455	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(367,198	)
Net realized loss		(367,198	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		3,261,796
Net unrealized appreciation		3,261,796
Net realized and unrealized gain		2,894,598
Net increase in net assets resulting from operations	$	2,731,143

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

130    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

\

  S&P 500 PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(163,455	)	$	(183,531	)
Net realized gain (loss) during the period on investments		(367,198	)		4,108,617
Net unrealized appreciation during the period on investments		3,261,796			3,489,396
Net increase in net assets resulting from operations		2,731,143			7,414,482
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		17,817,779			14,713,642
C-Class		3,838,909			9,209,791
H-Class		205,012,795			176,531,236
Cost of shares redeemed
A-Class		(8,379,704	)		(16,142,989	)
C-Class		(3,515,069	)		(6,496,395	)
H-Class		(173,489,859	)		(178,056,915	)
Net increase (decrease) from capital share transactions		41,284,851			(241,630	)
Net increase in net assets		44,015,994			7,172,852
Net assets:
Beginning of period		24,141,956			16,969,104
End of period	$	68,157,950		$	24,141,956
Accumulated net investment loss at end of period	$	(163,455	)	$	—
Capital share activity:
Shares sold
A-Class		661,815			581,564
C-Class		159,943			423,295
H-Class		8,169,872			7,640,587
Shares redeemed
A-Class		(309,661	)		(662,990	)
C-Class		(143,616	)		(305,413	)
H-Class		(6,953,430	)		(7,832,745	)
Total capital share activity		1,584,923			(155,702	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    131

2

  S&P 500 PURE GROWTH FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$26.51			$15.82			$25.11			$27.17			$26.11			$24.48
Income (loss) from investment operations:
Net investment lossb		(.12	)		(.18	)		(.11	)		(.15	)		(.13	)		(.07	)
Net gain (loss) on securities (realized and unrealized)		.94			10.87			(9.18	)		(1.52	)		1.19			1.72
Total from investment operations		.82			10.69			(9.29	)		(1.67	)		1.06			1.65
Less distributions:
Distributions from realized gains		—			—			—			(.39	)		—			(.02	)
Total distributions		—			—			—			(.39	)		—			(.02	)
Net asset value, end of period		$27.33			$26.51			$15.82			$25.11			$27.17			$26.11
Total Returnc		3.09%			67.57%			(37.00%	)		(6.28%	)		4.06%			6.76%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,455			$1,774			$2,346			$5,443			$2,675			$914
Ratios to average net assets:
Net investment loss		(0.98%	)		(0.81%	)		(0.46%	)		(0.53%	)		(0.51%	)		(0.29%	)
Total expenses		1.53%			1.52%			1.53%			1.51%			1.52%			1.48%
Portfolio turnover rate		398%			699%			573%			450%			1,029%			1,276%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.32			$15.23			$24.35			$26.57			$25.74			$24.30
Income (loss) from investment operations:
Net investment lossb		(.19	)		(.30	)		(.23	)		(.32	)		(.37	)		(.26	)
Net gain (loss) on securities (realized and unrealized)		.88			10.39			(8.89	)		(1.51	)		1.20			1.72
Total from investment operations		.69			10.09			(9.12	)		(1.83	)		.83			1.46
Less distributions:
Distributions from realized gains		—			—			—			(.39	)		—			(.02	)
Total distributions		—			—			—			(.39	)		—			(.02	)
Net asset value, end of period		$26.01			$25.32			$15.23			$24.35			$26.57			$25.74
Total Returnc		2.73%			66.25%			(37.45%	)		(7.02%	)		3.22%			6.03%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,096			$6,494			$2,111			$4,453			$3,743			$5,249
Ratios to average net assets:
Net investment loss		(1.57%	)		(1.40%	)		(1.13%	)		(1.21%	)		(1.44%	)		(1.04%	)
Total expenses		2.27%			2.28%			2.29%			2.27%			2.28%			2.23%
Portfolio turnover rate		398%			699%			573%			450%			1,029%			1,276%

132    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

  S&P 500 PURE GROWTH FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$26.50			$15.81			$25.10			$27.16			$26.11			$24.49
Income (loss) from investment operations:
Net investment lossb		(.11	)		(.14	)		(.09	)		(.17	)		(.14	)		(.05	)
Net gain (loss) on securities (realized and unrealized)		.93			10.83			(9.20	)		(1.50	)		1.19			1.69
Total from investment operations		.82			10.69			(9.29	)		(1.67	)		1.05			1.64
Less distributions:
Distributions from realized gains		—			—			—			(.39	)		—			(.02	)
Total distributions		—			—			—			(.39	)		—			(.02	)
Net asset value, end of period		$27.32			$26.50			$15.81			$25.10			$27.16			$26.11
Total Returnc		3.09%			67.62%			(37.01%	)		(6.28%	)		4.02%			6.71%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$49,608			$15,874			$12,512			$11,937			$49,087			$32,258
Ratios to average net assets:
Net investment loss		(0.90%	)		(0.60%	)		(0.41%	)		(0.62%	)		(0.53%	)		(0.19%	)
Total expenses		1.52%			1.53%			1.53%			1.53%			1.52%			1.49%
Portfolio turnover rate		398%			699%			573%			450%			1,029%			1,276%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment loss was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    133

4

FUND PROFILE (Unaudited)

September 30, 2010

S&P 500 PURE VALUE FUND

OBJECTIVE: To provide investment results that match the performance of a benchmark for large-cap value securities. The Fund’s current benchmark is the S&P 500 Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Tesoro Corp.	3.0	%
Sunoco, Inc.	2.8	%
Valero Energy Corp.	2.5	%
Huntington Bancshares, Inc.	2.5	%
Integrys Energy Group, Inc.	2.4	%
Zions Bancorporation	2.1	%
SunTrust Banks, Inc.	2.0	%
Tyson Foods, Inc. — Class A	2.0	%
Sears Holdings Corp.	1.9	%
Cardinal Health, Inc.	1.8	%
Top Ten Total	23.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

134    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 S&P 500 PURE VALUE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
FINANCIALS - 26.8% Huntington Bancshares, Inc.		79,845	$	452,721
Zions Bancorporation		17,891		382,152
SunTrust Banks, Inc.		13,757		355,343
Assurant, Inc.		7,125		289,987
Genworth Financial, Inc. — Class A*		23,595		288,331
Citigroup, Inc.*		58,520		228,228
American International Group, Inc.*		5,502		215,128
Bank of America Corp.		16,003		209,799
Lincoln National Corp.		8,111		194,015
KeyCorp		23,934		190,515
Capital One Financial Corp.		4,799		189,800
Unum Group		7,760		171,884
MetLife, Inc.		4,440		170,718
Comerica, Inc.		4,169		154,878
E*Trade Financial Corp.*		10,302		149,791
Host Hotels & Resorts, Inc.		9,638		139,558
NASDAQ OMX Group, Inc.*		6,735		130,861
Cincinnati Financial Corp.		4,375		126,219
Morgan Stanley		4,598		113,479
Kimco Realty Corp.		7,155		112,691
Marshall & Ilsley Corp.		15,614		109,923
Regions Financial Corp.		13,058		94,932
BB&T Corp.		3,497		84,208
Allstate Corp.		2,650		83,608
Discover Financial Services		4,745		79,147
Travelers Companies, Inc.		1,405		73,200
Total Financials				4,791,116
UTILITIES - 16.7% Integrys Energy Group, Inc.		8,120		422,727
Pepco Holdings, Inc.		16,494		306,788
NiSource, Inc.		14,907		259,382
Oneok, Inc.		4,688		211,148
Ameren Corp.		6,904		196,074
CMS Energy Corp.		9,555		172,181
CenterPoint Energy, Inc.		8,712		136,953
DTE Energy Co.		2,843		130,579
Northeast Utilities		4,334		128,156
Nicor, Inc.		2,435		111,572
Edison International		3,161		108,707
Pinnacle West Capital Corp.		2,538		104,743
American Electric Power Company, Inc.		2,712		98,256
Consolidated Edison, Inc.		2,018		97,308
SCANA Corp.		2,315		93,341
Xcel Energy, Inc.		3,917		89,973
Allegheny Energy, Inc.		3,299		80,891
Progress Energy, Inc.		1,809		80,356
Duke Energy Corp.		4,348		77,003
Constellation Energy Group, Inc.		2,370		76,409
Total Utilities				2,982,547

			MARKET
	SHARES		VALUE
ENERGY - 12.5%
Tesoro Corp.		39,580	$	528,789
Sunoco, Inc.		13,711		500,451
Valero Energy Corp.		25,878		453,124
Marathon Oil Corp.		7,596		251,428
Hess Corp.		2,496		147,563
Chesapeake Energy Corp.		4,666		105,685
ConocoPhillips		1,585		91,027
Chevron Corp.		1,076		87,210
Williams Companies, Inc.		4,040		77,204
Total Energy				2,242,481
HEALTH CARE - 11.0% Cardinal Health, Inc.		9,950		328,748
AmerisourceBergen Corp. — Class A		10,105		309,819
Humana, Inc.*		6,139		308,423
Coventry Health Care, Inc.*		12,421		267,424
McKesson Corp.		3,915		241,869
WellPoint, Inc.*		2,708		153,381
Tenet Healthcare Corp.*		29,506		139,268
Aetna, Inc.		4,254		134,469
CareFusion Corp.*		3,721		92,430
Total Health Care				1,975,831
CONSUMER DISCRETIONARY - 9.0%
Sears Holdings Corp.*		4,735		341,583
Interpublic Group of Companies, Inc.*		20,258		203,188
Whirlpool Corp.		2,432		196,895
JC Penney Company, Inc.		6,293		171,044
Goodyear Tire & Rubber Co.*		14,512		156,004
AutoNation, Inc.*		6,699		155,752
Big Lots, Inc.*		3,770		125,352
Fortune Brands, Inc.		1,860		91,568
Eastman Kodak Co.*		21,079		88,532
Comcast Corp. — Class A		4,609		83,330
Total Consumer Discretionary				1,613,248
CONSUMER STAPLES - 8.4% Tyson Foods, Inc. — Class A		22,073		353,609
Safeway, Inc.		13,471		285,046
Kroger Co.		12,361		267,739
Archer-Daniels-Midland Co.		7,010		223,759
Dean Foods Co.*		13,180		134,568
CVS Caremark Corp.		4,170		131,230
Costco Wholesale Corp.		1,797		115,889
Total Consumer Staples				1,511,840
INDUSTRIALS - 6.5%
Jacobs Engineering Group, Inc.*		4,403		170,396
Fluor Corp.		3,206		158,793
Ryder System, Inc.		3,668		156,880
Textron, Inc.		7,130		146,593
Southwest Airlines Co.		8,322		108,769
Eaton Corp.		1,286		106,082
Snap-On, Inc.		1,914		89,020

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    135

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

   S&P 500 PURE VALUE FUND

			MARKET
	SHARES		VALUE
L-3 Communications Holdings, Inc.		1,104	$	79,786
RR Donnelley & Sons Co.		4,576		77,609
Avery Dennison Corp.		1,898		70,454
Total Industrials				1,164,382
MATERIALS - 3.3% United States Steel Co.		7,001		306,924
Alcoa, Inc.		16,585		200,844
Dow Chemical Co.		3,249		89,218
Total Materials				596,986
TELECOMMUNICATION SERVICES - 3.1%
Sprint Nextel Corp.*		66,427		307,557
MetroPCS Communications, Inc.*		15,871		166,011
CenturyLink, Inc.		2,181		86,062
Total Telecommunication Services				559,630
INFORMATION TECHNOLOGY - 2.2%
Xerox Corp.		22,791		235,887
Lexmark International, Inc. — Class A*		3,445		153,716
Total Information Technology				389,603
Total Common Stocks (Cost $13,767,752)				17,827,664

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 0.7%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	45,669	$	45,669
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		45,618		45,618
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		18,850		18,850
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		4,816		4,816
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		4,713		4,713
Total Repurchase Agreements (Cost $119,666)			$	119,666
Total Investments - 100.2% (Cost $13,887,418)			$	17,947,330
Liabilities, Less Cash & Other Assets - (0.2)%				(33,685	)
Total Net Assets - 100.0%			$	17,913,645

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

136    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P 500 PURE VALUE FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	17,827,664
Repurchase agreement, at value		119,666
Total investments		17,947,330
Receivables:
Fund shares sold		405,877
Dividends		22,863
Total assets		18,376,070
Liabilities:
Payable for:
Securities purchased		387,540
Fund shares redeemed		2,289
Management fees		19,022
Custodian fees		960
Transfer agent/maintenance fees		6,340
Distribution and service fees		7,982
Portfolio accounting fees		2,536
Other		35,756
Total liabilities		462,425
Net assets	$	17,913,645
Net assets consist of:
Paid in capital		21,782,045
Undistributed net investment income		147,336
Accumulated net realized loss on sale of investments		(8,075,648	)
Net unrealized appreciation in value of investments		4,059,912
Net assets		17,913,645
A-Class:
Net assets	$	1,840,959
Capital shares outstanding		24,141
Net asset value per share		$76.26
Maximum offering price per share*		$80.06
C-Class:
Net assets	$	2,778,095
Capital shares outstanding		38,941
Net asset value per share		$71.34
H-Class:
Net assets	$	13,294,591
Capital shares outstanding		173,811
Net asset value per share		$76.49
Investments, at cost	$	13,767,752
Repurchase agreement, at cost		119,666
Total cost	$	13,887,418

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	421,704
Interest		346
Total investment income		422,050
Expenses:
Management fees		238,244
Transfer agent and administrative fees		79,415
Distribution and Service Fees:
A-Class		5,272
C-Class		14,050
H-Class		70,630
Portfolio accounting fees		31,766
Trustees’ fees**		4,576
Miscellaneous		54,062
Total expenses		498,015
Net investment loss		(75,965	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		6,564,021
Net realized gain		6,564,021
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(10,292,562	)
Net unrealized depreciation		(10,292,562	)
Net loss		(3,728,541	)
Net decrease in net assets resulting from operations	$	(3,804,506	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    137

  S&P 500 PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(75,965	)	$	223,302
Net realized gain during the period on investments		6,564,021			11,207,510
Net unrealized appreciation (depreciation) during the period on investments		(10,292,562	)		14,716,760
Net increase (decrease) in net assets resulting from operations		(3,804,506	)		26,147,572
Distributions to shareholders from:
Net investment income
A-Class		—			(5,911	)
C-Class		—			(37,725	)
H-Class		—			(465,758	)
Total distributions to shareholders		—			(509,394	)
Capital share transactions:
Proceeds from sale of shares
A-Class		14,829,622			15,145,213
C-Class		4,943,340			12,436,778
H-Class		192,749,539			455,762,213
Distributions reinvested
A-Class		—			3,807
C-Class		—			37,392
H-Class		—			465,190
Cost of shares redeemed
A-Class		(20,453,619	)		(7,194,675	)
C-Class		(6,793,844	)		(9,899,329	)
H-Class		(325,166,148	)		(336,675,504	)
Net increase (decrease) from capital share transactions		(139,891,110	)		130,081,085
Net increase (decrease) in net assets		(143,695,616	)		155,719,263
Net assets:
Beginning of period		161,609,261			5,889,998
End of period	$	17,913,645		$	161,609,261
Undistributed net investment income at end of period	$	147,336		$	223,301
Capital share activity:
Shares sold
A-Class		183,442			198,985	†
C-Class		68,159			206,943	†
H-Class		2,541,603			6,745,739	†
Shares reinvested
A-Class		—			54	†
C-Class		—			561	†
H-Class		—			6,550	†
Shares redeemed
A-Class		(261,690	)		(102,355	)†
C-Class		(94,393	)		(175,865	)†
H-Class		(4,227,099	)		(5,020,789	)†
Total capital share activity		(1,789,978	)		1,859,823	†

^† Share amounts for the period April 1, 2009 through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

138    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P 500 PURE VALUE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$79.66			$35.58			$100.00			$167.30			$145.60			$132.80
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.26			1.95			2.45			1.85			.95
Net gain (loss) on securities (realized and unrealized)		(3.37	)		44.60			(57.52	)		(30.50	)		21.65			13.87
Total from investment operations		(3.40	)		44.86			(55.57	)		(28.05	)		23.50			14.82
Less distributions:
Distributions from net investment income		—			(.78	)		(1.05	)		(9.95	)		(1.05	)		—
Distributions from realized gains		—			—			(7.80	)		(29.30	)		(.75	)		(2.02	)
Total distributions		—			(.78	)		(8.85	)		(39.25	)		(1.80	)		(2.02	)
Net asset value, end of period		$76.26			$79.66			$35.58			$100.00			$167.30			$145.60
Total Returnc		(4.27%	)		126.37%			(57.28%	)		(19.98%	)		16.21%			11.20%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,841			$8,156			$203			$4,269			$5,348			$713
Ratios to average net assets:
Net investment income (loss)		(0.08%	)		0.39%			2.16%			1.67%			1.17%			0.70%
Total expenses		1.53%			1.52%			1.53%			1.52%			1.50%			1.47%
Portfolio turnover rate		230%			673%			1,448%			289%			389%			1,054%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$74.81			$33.66			$96.00			$163.40			$143.35			$131.90
Income (loss) from investment operations:
Net investment income (loss)b		(.27	)		(.02	)		1.40			.70			.45			.20
Net gain (loss) on securities (realized and unrealized)		(3.20	)		41.95			(54.89	)		(28.85	)		21.40			13.27
Total from investment operations		(3.47	)		41.93			(53.49	)		(28.15	)		21.85			13.47
Less distributions:
Distributions from net investment income		—			(.78	)		(1.05	)		(9.95	)		(1.05	)		—
Distributions from realized gains		—			—			(7.80	)		(29.30	)		(.75	)		(2.02	)
Total distributions		—			(.78	)		(8.85	)		(39.25	)		(1.80	)		(2.02	)
Net asset value, end of period		$71.34			$74.81			$33.66			$96.00			$163.40			$143.35
Total Returnc		(4.64%	)		124.86%			(57.55%	)		(20.57%	)		15.31%			10.25%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,778			$4,876			$1,129			$1,838			$21,075			$4,344
Ratios to average net assets:
Net investment income (loss)		(0.76%	)		(0.03%	)		2.44%			0.48%			0.29%			0.14%
Total expenses		2.28%			2.27%			2.29%			2.29%			2.27%			2.26%
Portfolio turnover rate		230%			673%			1,448%			289%			389%			1,054%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    139

  S&P 500 PURE VALUE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$79.91			$35.67			$100.00			$167.30			$145.60			$132.80
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		.32			1.40			1.80			1.75			1.15
Net gain (loss) on securities (realized and unrealized)		(3.33	)		44.70			(56.88	)		(29.85	)		21.75			13.67
Total from investment operations		(3.42	)		45.02			(55.48	)		(28.05	)		23.50			14.82
Less distributions:
Distributions from net investment income		—			(.78	)		(1.05	)		(9.95	)		(1.05	)		—
Distributions from realized gains		—			—			(7.80	)		(29.30	)		(.75	)		(2.02	)
Total distributions		—			(.78	)		(8.85	)		(39.25	)		(1.80	)		(2.02	)
Net asset value, end of period		$76.49			$79.91			$ 35.67			$100.00			$167.30			$145.60
Total Returnc		(4.28%	)		126.50%			(57.23%	)		(19.98%	)		16.21%			11.20%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,295			$148,578			$4,558			$18,459			$184,082			$56,005
Ratios to average net assets:
Net investment income (loss)		(0.23%	)		0.47%			2.36%			1.11%			1.12%			0.82%
Total expenses		1.54%			1.54%			1.53%			1.53%			1.51%			1.49%
Portfolio turnover rate		230%			673%			1,448%			289%			389%			1,054%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split – Per share amounts for the period March 31, 2006 through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

140    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

S&P MIDCAP 400 PURE GROWTH FUND

OBJECTIVE: To provide investment results that match the performance of a benchmark for mid-cap growth securities. The Fund’s current benchmark is the S&P MidCap 400 Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
NetFlix, Inc.	4.3	%
Green Mountain Coffee Roasters, Inc.	2.7	%
Bucyrus International, Inc. — Class A	2.5	%
Jones Lang LaSalle, Inc.	2.0	%
F5 Networks, Inc.	1.9	%
NewMarket Corp.	1.8	%
Cheesecake Factory, Inc.	1.8	%
Guess?, Inc.	1.7	%
Fossil, Inc.	1.7	%
Community Health Systems, Inc.	1.7	%
Top Ten Total	22.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    141

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  S&P MIDCAP 400 PURE GROWTH FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
CONSUMER DISCRETIONARY - 29.4%
NetFlix, Inc.*		14,319	$	2,321,969
Cheesecake Factory, Inc.*		37,000		979,390
Guess?, Inc.		22,820		927,177
Fossil, Inc.*		16,940		911,203
Chipotle Mexican Grill, Inc. — Class A*		5,153		886,316
Aeropostale, Inc.*		35,974		836,396
Life Time Fitness, Inc.*		18,107		714,683
Panera Bread Co. — Class A*		8,020		710,652
LKQ Corp.*		33,735		701,688
Under Armour, Inc. — Class A*		14,738		663,800
Tupperware Brands Corp.		14,287		653,773
Bally Technologies, Inc.*		17,711		618,999
Warnaco Group, Inc.*		11,556		590,858
Dress Barn, Inc.*		20,807		494,166
Williams-Sonoma, Inc.		14,698		465,927
Sotheby’s		12,334		454,138
J Crew Group, Inc.*		12,620		424,284
Collective Brands, Inc.*		21,084		340,296
Lamar Advertising Co. — Class A*		10,655		339,042
Dollar Tree, Inc.*		6,621		322,840
WMS Industries, Inc.*		7,807		297,212
Gentex Corp.		14,536		283,597
Chico’s FAS, Inc.		26,916		283,156
DreamWorks Animation SKG, Inc. — Class A*		8,248		263,194
ITT Educational Services, Inc.*		2,569		180,524
Strayer Education, Inc.		953		166,299
Total Consumer Discretionary				15,831,579
INFORMATION TECHNOLOGY - 22.0%
F5 Networks, Inc.*		9,776		1,014,847
Rackspace Hosting, Inc.*		34,300		891,114
Solera Holdings, Inc.		18,862		832,946
Equinix, Inc.*		8,025		821,359
Advent Software, Inc.*		12,985		677,687
Informatica Corp.*		17,293		664,224
TIBCO Software, Inc.*		35,335		626,843
CommScope, Inc.*		25,605		607,863
Rovi Corp.*		10,925		550,729
Factset Research Systems, Inc.		6,430		521,666
ANSYS, Inc.*		12,131		512,535
Polycom, Inc.*		18,664		509,154
Skyworks Solutions, Inc.*		22,550		466,334
Cree, Inc.*		8,478		460,271
Itron, Inc.*		6,979		427,324
Gartner, Inc.*		11,246		331,082
ValueClick, Inc.*		25,304		330,976
MICROS Systems, Inc.*		7,115		301,178
Global Payments, Inc.		6,584		282,388
Alliance Data Systems Corp.*		3,797		247,792

			MARKET
	SHARES		VALUE
Semtech Corp.*		12,102	$	244,339
NeuStar, Inc. — Class A*		8,062		200,421
Broadridge Financial Solutions, Inc.		8,365		191,308
Silicon Laboratories, Inc.*		4,462		163,532
Total Information Technology				11,877,912
HEALTH CARE - 11.7%
Community Health Systems, Inc.*		29,076		900,484
WellCare Health Plans, Inc.*		24,754		716,876
United Therapeutics Corp.*		12,165		681,362
IDEXX Laboratories, Inc.*		8,616		531,779
Mednax, Inc.*		9,780		521,274
Lincare Holdings, Inc.		18,139		455,107
Allscripts Healthcare Solutions, Inc.*		24,370		450,114
Edwards Lifesciences Corp.*		5,185		347,654
Medicis Pharmaceutical Corp. — Class A		11,591		343,673
Masimo Corp.		11,970		326,901
Mettler-Toledo International, Inc.*		2,513		312,718
Kinetic Concepts, Inc.*		8,402		307,345
ResMed, Inc.*		7,132		234,001
Covance, Inc.*		3,594		168,163
Total Health Care				6,297,451
INDUSTRIALS - 11.3%
Bucyrus International, Inc. — Class A		19,138		1,327,220
Joy Global, Inc.		11,912		837,652
Baldor Electric Co.		17,900		723,160
BE Aerospace, Inc.*		22,481		681,399
Thomas & Betts Corp.*		14,066		576,987
Gardner Denver, Inc.		7,661		411,243
Kirby Corp.*		8,374		335,462
AMETEK, Inc.		5,967		285,044
Valmont Industries, Inc.		3,901		282,432
Nordson Corp.		3,119		229,839
FTI Consulting, Inc.*		6,621		229,683
Oshkosh Corp.*		5,421		149,078
Total Industrials				6,069,199
ENERGY - 6.7%
Oceaneering International, Inc.*		13,968		752,317
Atwood Oceanics, Inc.*		23,903		727,846
Superior Energy Services, Inc.*		26,218		699,758
Bill Barrett Corp.*		18,646		671,256
Quicksilver Resources, Inc.*		46,592		587,059
Plains Exploration & Production Co.*		6,953		185,437
Total Energy				3,623,673
FINANCIALS - 5.8%
Jones Lang LaSalle, Inc.		12,724		1,097,699
SL Green Realty Corp.		13,163		833,613
Waddell & Reed Financial, Inc. — Class A		17,025		465,804

142    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

2

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  S&P MIDCAP 400 PURE GROWTH FUND

			MARKET
	SHARES		VALUE
Affiliated Managers Group, Inc.*		4,771	$	372,186
MSCI, Inc. — Class A*		10,899		361,956
Total Financials				3,131,258
MATERIALS - 5.8%
NewMarket Corp.		8,681		986,856
Reliance Steel & Aluminum Co.		19,201		797,418
Steel Dynamics, Inc.		44,221		623,958
Lubrizol Corp.		3,796		402,262
Greif, Inc. — Class A		5,317		312,852
Total Materials				3,123,346
CONSUMER STAPLES - 5.3%
Green Mountain Coffee Roasters, Inc.*		46,064		1,436,736
NBTY, Inc.*		15,137		832,232
Hansen Natural Corp.*		12,030		560,839
Total Consumer Staples				2,829,807
TELECOMMUNICATION SERVICES - 1.5%
tw telecom inc — Class-A*		24,685		458,400
Syniverse Holdings, Inc.*		16,624		376,866
Total Telecommunication Services				835,266
Total Common Stocks
(Cost $42,173,805)				53,619,491
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		18		1
Total Warrant
(Cost $—)				1

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 1.4%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	291,928	$	291,928
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		291,603		291,603
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		120,497		120,497
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		30,786		30,786
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		30,124		30,124
Total Repurchase Agreements
(Cost $764,938)				764,938
Total Investments – 100.9%
(Cost $42,938,743)			$	54,384,430
Liabilities, Less Cash &
Other Assets – (0.9)%			$	(481,361	)
Total Net Assets – 100.0%			$	53,903,069

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    143

3

  S&P MIDCAP 400 PURE GROWTH FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	53,619,492
Repurchase agreement, at value		764,938
Total investments		54,384,430
Receivables:
Securities sold		462,262
Fund shares sold		813,702
Dividends		16,562
Total assets		55,676,956
Liabilities:
Payable for:
Securities purchased		1,594,330
Fund shares redeemed		110,105
Management fees		24,702
Custodian fees		1,129
Transfer agent/maintenance fees		8,234
Distribution and service fees		10,463
Portfolio accounting fees		3,294
Other		21,630
Total liabilities		1,773,887
Net assets	$	53,903,069
Net assets consist of:
Paid in capital		63,371,008
Accumulated net investment loss		(287,626	)
Accumulated net realized loss on sale of investments		(20,626,000	)
Net unrealized appreciation in value of investments		11,445,687
Net assets		53,903,069
A-Class:
Net assets	$	3,591,887
Capital shares outstanding		107,024
Net asset value per share		$33.56
Maximum offering price per share*		$35.23
C-Class:
Net assets	$	4,925,048
Capital shares outstanding		154,456
Net asset value per share		$31.89
H-Class:
Net assets	$	45,386,134
Capital shares outstanding		1,350,746
Net asset value per share		$33.60
Investments, at cost	$	42,173,805
Repurchase agreement, at cost		764,938
Total cost	$	42,938,743

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	74,181
Interest		350
Total investment income		74,531
Expenses:
Management fees		171,125
Transfer agent and administrative fees		57,042
Distribution and Service Fees:
A-Class		3,887
C-Class		17,192
H-Class		48,856
Portfolio accounting fees		22,816
Trustees’ fees**		2,087
Miscellaneous		39,152
Total expenses		362,157
Net investment loss		(287,626	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		782,687
Net realized gain		782,687
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(1,081,961	)
Net unrealized depreciation		(1,081,961	)
Net loss		(299,274	)
Net decrease in net assets resulting from operations	$	(586,900	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

144    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

1

  S&P MIDCAP 400 PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(287,626	)	$	(518,991	)
Net realized gain during the period on investments		782,687			4,143,406
Net unrealized appreciation (depreciation) during the period on investments		(1,081,961	)		10,192,157
Net increase (decrease) in net assets resulting from operations		(586,900	)		13,816,572
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		10,887,912			9,118,126
C-Class		4,268,661			12,063,875
H-Class		176,484,351			359,244,845
Cost of shares redeemed
A-Class		(9,274,095	)		(8,227,201	)
C-Class		(3,143,876	)		(13,253,534	)
H-Class		(195,203,686	)		(322,082,822	)
Net increase (decrease) from capital share transactions		(15,980,733	)		36,863,289
Net increase (decrease) in net assets		(16,567,633	)		50,679,861
Net assets:
Beginning of period		70,470,702			19,790,841
End of period	$	53,903,069		$	70,470,702
Accumulated net investment loss at end of period	$	(287,626	)	$	—
Capital share activity:
Shares sold
A-Class		343,113			300,377
C-Class		138,200			502,964
H-Class		5,617,668			14,089,972
Shares redeemed
A-Class		(305,694	)		(270,498	)
C-Class		(106,817	)		(578,802	)
H-Class		(6,265,414	)		(12,947,561	)
Total capital share activity		(578,944	)		1,096,452

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    145

2

  S&P MIDCAP 400 PURE GROWTH FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$32.21			$18.19			$26.65			$30.72			$31.94			$26.85
Income (loss) from investment operations:
Net investment lossb		(.18	)		(.28	)		(.24	)		(.27	)		(.08	)		(.17	)
Net gain (loss) on securities (realized and unrealized)		1.53			14.30			(8.22	)		(1.42	)		.48			5.39
Total from investment operations		1.35			14.02			(8.46	)		(1.69	)		.40			5.22
Less distributions:
Distributions from realized gains		—			—			—			(2.38	)		(1.62	)		(.13	)
Total distributions		—			—			—			(2.38	)		(1.62	)		(.13	)
Net asset value, end of period		$33.56			$32.21			$18.19			$26.65			$30.72			$31.94
Total Returnc		4.19%			77.08%			(31.74%	)		(6.26%	)		1.36%			19.47%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,592			$2,242			$723			$3,863			$2,777			$1,530
Ratios to average net assets:
Net investment loss		(1.20%	)		(1.03%	)		(0.93%	)		(0.88%	)		(0.25%	)		(0.60%	)
Total expenses		1.53%			1.53%			1.58%			1.52%			1.51%			1.48%
Portfolio turnover rate		326%			626%			1,281%			736%			537%			681%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$30.71			$17.48			$25.79			$30.01			$31.47			$26.66
Income (loss) from investment operations:
Net investment lossb		(.29	)		(.44	)		(.42	)		(.50	)		(.42	)		(.42	)
Net gain (loss) on securities (realized and unrealized)		1.47			13.67			(7.89	)		(1.34	)		.58			5.36
Total from investment operations		1.18			13.23			(8.31	)		(1.84	)		.16			4.94
Less distributions:
Distributions from realized gains		—			—			—			(2.38	)		(1.62	)		(.13	)
Total distributions		—			—			—			(2.38	)		(1.62	)		(.13	)
Net asset value, end of period		$31.89			$30.71			$17.48			$25.79			$30.01			$31.47
Total Returnc		3.84%			75.69%			(32.22%	)		(6.92%	)		0.60%			18.55%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,925			$3,780			$3,477			$1,426			$5,316			$3,305
Ratios to average net assets:
Net investment loss		(1.94%	)		(1.77%	)		(1.72%	)		(1.69%	)		(1.40%	)		(1.43%	)
Total expenses		2.28%			2.28%			2.32%			2.28%			2.27%			2.26%
Portfolio turnover rate		326%			626%			1,281%			736%			537%			681%

146    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

  S&P MIDCAP 400 PURE GROWTH FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$32.25			$18.21			$26.68			$30.75			$31.95			$26.86
Income (loss) from investment operations:
Net investment lossb		(.19	)		(.26	)		(.22	)		(.28	)		(.24	)		(.19	)
Net gain (loss) on securities (realized and unrealized)		1.54			14.30			(8.25	)		(1.41	)		.66			5.41
Total from investment operations		1.35			14.04			(8.47	)		(1.69	)		.42			5.22
Less distributions:
Distributions from realized gains		—			—			—			(2.38	)		(1.62	)		(.13	)
Total distributions		—			—			—			(2.38	)		(1.62	)		(.13	)
Net asset value, end of period		$33.60			$32.25			$18.21			$26.68			$30.75			$31.95
Total Returnc		4.19%			77.10%			(31.75%	)		(6.25%	)		1.42%			19.46%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$45,386			$64,449			$15,591			$14,158			$7,715			$48,888
Ratios to average net assets:
Net investment loss		(1.21%	)		(0.99%	)		(0.95%	)		(0.92%	)		(0.80%	)		(0.63%	)
Total expenses		1.53%			1.54%			1.55%			1.51%			1.52%			1.50%
Portfolio turnover rate		326%			626%			1,281%			736%			537%			681%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment loss was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    147

4

FUND PROFILE (Unaudited)

September 30, 2010

S&P MIDCAP 400 PURE VALUE FUND

OBJECTIVE: To provide investment results that match the performance of a benchmark for mid-cap value securities. The Fund’s current benchmark is the S&P MidCap 400 Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Cathay General Bancorp	3.3	%
Foot Locker, Inc.	2.7	%
Terex Corp.	2.7	%
Kindred Healthcare, Inc.	2.6	%
Frontier Oil Corp.	2.5	%
Health Net, Inc.	2.4	%
Ashland, Inc.	2.3	%
BJ’s Wholesale Club, Inc.	2.2	%
Regis Corp.	2.2	%
KBR, Inc.	2.1	%
Top Ten Total	25.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

148    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  S&P MIDCAP 400 PURE VALUE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.1%
INDUSTRIALS - 20.7% Terex Corp.*		61,815	$	1,416,800
KBR, Inc.		44,607		1,099,116
Trinity Industries, Inc.		48,944		1,089,983
Manpower, Inc.		17,806		929,473
AGCO Corp.*		21,462		837,233
Timken Co.		20,699		794,014
URS Corp.*		18,836		715,391
Alaska Air Group, Inc.*		12,074		616,136
Shaw Group, Inc.*		16,964		569,312
JetBlue Airways Corp.*		81,836		547,483
Con-way, Inc.		15,861		491,532
Alexander & Baldwin, Inc.		11,312		394,110
Aecom Technology Corp.*		15,496		375,933
Brink’s Co.		15,987		367,701
Granite Construction, Inc.		15,865		360,770
GATX Corp.		8,709		255,348
Total Industrials				10,860,335
CONSUMER DISCRETIONARY - 14.6%
Foot Locker, Inc.		98,230		1,427,282
Regis Corp.		60,719		1,161,554
Saks, Inc.*		117,533		1,010,784
Rent-A-Center, Inc. — Class A		36,446		815,662
Barnes & Noble, Inc.		42,096		682,376
Brinker International, Inc.		25,980		489,983
Boyd Gaming Corp.*		65,509		474,940
Coldwater Creek, Inc.*		86,198		454,263
Scholastic Corp.		14,770		410,901
Bob Evans Farms, Inc.		14,500		407,015
Harte-Hanks, Inc.		28,886		337,100
Total Consumer Discretionary				7,671,860
FINANCIALS - 14.6% Cathay General Bancorp		145,126		1,725,548
Associated Banc-Corp		70,376		928,259
Astoria Financial Corp.		46,668		636,085
Unitrin, Inc.		24,557		598,945
Synovus Financial Corp.		214,849		528,529
American Financial Group, Inc.		16,581		507,047
Reinsurance Group of America, Inc. — Class A		8,584		414,521
Old Republic International Corp.		29,655		410,722
Hospitality Properties Trust		17,720		395,688
Protective Life Corp.		15,984		347,812
Hanover Insurance Group, Inc.		6,737		316,639
StanCorp Financial Group, Inc.		8,201		311,638
Wilmington Trust Corp.		29,306		263,168
HCC Insurance Holdings, Inc.		9,590		250,203
Total Financials				7,634,804
INFORMATION TECHNOLOGY - 9.9%
Tech Data Corp.*		24,536		988,801
Ingram Micro, Inc. — Class A*		54,321		915,852

			MARKET
	SHARES		VALUE
Arrow Electronics, Inc.*		29,148	$	779,126
NCR Corp.*		55,113		751,190
CoreLogic, Inc.		23,811		456,219
Avnet, Inc.*		13,700		370,037
Diebold, Inc.		10,815		336,239
SRA International, Inc. — Class- *		15,081		297,397
Convergys Corp.*		27,102		283,216
Total Information Technology				5,178,077
UTILITIES - 9.6% Dynegy, Inc. — Class A*		125,624		611,789
N.V. Energy, Inc.		41,146		541,070
UGI Corp.		18,188		520,359
Atmos Energy Corp.		17,008		497,484
PNM Resources, Inc.		42,939		489,075
Alliant Energy Corp.		12,420		451,467
Hawaiian Electric Industries, Inc.		19,308		435,202
Great Plains Energy, Inc.		22,929		433,358
WGL Holdings, Inc.		9,939		375,495
Black Hills Corp.		11,484		358,301
Westar Energy, Inc.		14,238		344,987
Total Utilities				5,058,587
HEALTH CARE - 9.4% Kindred Healthcare, Inc.*		103,319		1,345,213
Health Net, Inc.*		46,240		1,257,266
Owens & Minor, Inc.		30,762		875,487
Omnicare, Inc.		33,023		788,589
LifePoint Hospitals, Inc.*		18,588		651,695
Total Health Care				4,918,250
CONSUMER STAPLES - 8.3% BJ’s Wholesale Club, Inc.*		28,405		1,178,808
Smithfield Foods, Inc.*		63,575		1,069,967
Ruddick Corp.		22,678		786,473
Corn Products International, Inc.		14,705		551,437
Universal Corp.		11,563		463,561
Ralcorp Holdings, Inc.*		5,107		298,657
Total Consumer Staples				4,348,903
ENERGY - 5.6% Frontier Oil Corp.		98,770		1,323,518
Overseas Shipholding Group, Inc.		22,297		765,233
Patriot Coal Corp.*		43,577		497,213
Patterson-UTI Energy, Inc.		21,045		359,449
Total Energy				2,945,413
MATERIALS - 5.5% Ashland, Inc.		25,029		1,220,664
Commercial Metals Co.		47,341		685,971
Cytec Industries, Inc.		9,154		516,103
Worthington Industries, Inc.		32,478		488,144
Total Materials				2,910,882
TELECOMMUNICATION SERVICES - 0.9%
Telephone & Data Systems, Inc.		13,660		448,048
Total Common Stocks (Cost $44,537,311)				51,975,159

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    149

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  S&P MIDCAP 400 PURE VALUE FUND

			MARKET
	SHARES		VALUE
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		176	$	9
Total Warrant (Cost $—)				9
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 0.7%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		$141,454		141,454
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		141,296		141,296
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		58,387		58,387
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		14,917		14,917
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		14,597		14,597
Total Repurchase Agreements (Cost $370,651)				370,651
Total Investments – 99.8% (Cost $44,907,962)			$	52,345,819
Cash & Other Assets, Less Liabilities – 0.2%				118,806
Total Net Assets – 100.0%			$	52,464,625

*	Non-Income Producing Security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

150    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P MIDCAP 400 PURE VALUE FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	51,975,168
Repurchase agreement, at value		370,651
Total investments		52,345,819
Receivables:
Fund shares sold		199,028
Dividends		23,209
Total assets		52,568,056
Liabilities:
Payable for:
Fund shares redeemed		14,993
Management fees		25,804
Custodian fees		1,139
Transfer agent/maintenance fees		8,601
Distribution and service fees		9,527
Portfolio accounting fees		3,440
Other		39,927
Total liabilities		103,431
Net assets	$	52,464,625
Net assets consist of:
Paid in capital		52,028,516
Undistributed net investment income		123,227
Accumulated net realized loss on sale of investments		(7,124,975	)
Net unrealized appreciation in value of investments		7,437,857
Net assets		52,464,625
A-Class:
Net assets	$	781,782
Capital shares outstanding		27,445
Net asset value per share		$28.49
Maximum offering price per share*		$29.91
C-Class:
Net assets	$	1,535,229
Capital shares outstanding		56,852
Net asset value per share		$27.00
H-Class:
Net assets	$	50,147,614
Capital shares outstanding		1,761,022
Net asset value per share		$28.48
Investments, at cost	$	44,537,311
Repurchase agreement, at cost		370,651
Total cost	$	44,907,962

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	643,692
Interest		570
Total investment income		644,262
Expenses:
Management fees		365,179
Transfer agent and administrative fees		121,727
Distribution and Service Fees:
A-Class		11,316
C-Class		8,466
H-Class		108,294
Portfolio accounting fees		48,682
Trustees’ fees**		6,718
Miscellaneous		82,602
Total expenses		752,984
Net investment loss		(108,722	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(5,908,112	)
Net realized loss		(5,908,112	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(14,581,512	)
Net unrealized depreciation		(14,581,512	)
Net loss		(20,489,624	)
Net decrease in net assets resulting from operations	$	(20,598,346	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    151

  S&P MIDCAP 400 PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(108,722	)	$	231,950
Net realized gain (loss) during the period on investments		(5,908,112	)		9,616,321
Net unrealized appreciation (depreciation) during the period on investments		(14,581,512	)		21,691,091
Net increase (decrease) in net assets resulting from operations		(20,598,346	)		31,539,362
Distributions to shareholders from:
Net investment income
A-Class		—			(2,076	)
C-Class		—			(6,922	)
H-Class		—			(134,553	)
Total distributions to shareholders		—			(143,551	)
Capital share transactions:
Proceeds from sale of shares
A-Class		47,244,259			16,949,502
C-Class		948,236			15,195,168
H-Class		140,018,288			529,643,072
Distributions reinvested
A-Class		—			2,017
C-Class		—			6,784
H-Class		—			133,192
Cost of shares redeemed
A-Class		(53,758,958	)		(7,103,408	)
C-Class		(1,773,839	)		(14,178,507	)
H-Class		(272,438,990	)		(363,931,663	)
Net increase (decrease) from capital share transactions		(139,761,004	)		176,716,157
Net increase (decrease) in net assets		(160,359,350	)		208,111,968
Net assets:
Beginning of period		212,823,975			4,712,007
End of period	$	52,464,625		$	212,823,975
Undistributed net investment income at end of period	$	123,227		$	231,949
Capital share activity:
Shares sold
A-Class		1,698,572			593,908
C-Class		34,624			623,530
H-Class		4,779,674			20,524,706
Shares reinvested
A-Class		—			75
C-Class		—			266
H-Class		—			4,985
Shares redeemed
A-Class		(2,028,701	)		(243,737	)
C-Class		(63,334	)		(585,996	)
H-Class		(9,573,321	)		(14,266,469	)
Total capital share activity		(5,152,486	)		6,651,268

152    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P MIDCAP 400 PURE VALUE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$30.45			$13.68			$29.72			$36.58			$31.83			$27.49
Income (loss) from investment operations:
Net investment incomeb		.01			.12			.47			.44			.34			.06
Net gain (loss) on securities (realized and unrealized)		(1.97	)		16.75			(16.51	)		(6.37	)		4.57			4.47
Total from investment operations		(1.96	)		16.87			(16.04	)		(5.93	)		4.91			4.53
Less distributions:
Distributions from net investment income		—			(.10	)		—			(.93	)		—			(—	)d
Distributions from realized gains		—			—			—			—			(.16	)		(.19	)
Total distributions		—			(.10	)		—			(.93	)		(.16	)		(.19	)
Net asset value, end of period		$28.49			$30.45			$13.68			$29.72			$36.58			$31.83
Total Returnc		(6.44%	)		123.41%			(53.97%	)		(16.45%	)		15.45%			16.51%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$782			$10,888			$100			$2,797			$4,744			$1,480
Ratios to average net assets:
Net investment income		0.10%			0.43%			1.66%			1.25%			1.00%			0.21%
Total expenses		1.52%			1.52%			1.54%			1.53%			1.53%			1.48%
Portfolio turnover rate		143%			443%			977%			297%			625%			558%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$28.96			$13.12			$28.78			$35.75			$31.34			$27.29
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.06	)		.39			.30			.11			(.10	)
Net gain (loss) on securities (realized and unrealized)		(1.84	)		16.00			(16.05	)		(6.34	)		4.46			4.34
Total from investment operations		(1.96	)		15.94			(15.66	)		(6.04	)		4.57			4.24
Less distributions:
Distributions from net investment income		—			(.10	)		—			(.93	)		—			(—	)d
Distributions from realized gains		—			—			—			—			(.16	)		(.19	)
Total distributions		—			(.10	)		—			(.93	)		(.16	)		(.19	)
Net asset value, end of period		$27.00			$28.96			$13.12			$28.78			$35.75			$31.34
Total Returnc		(6.77%	)		121.59%			(54.41%	)		(17.15%	)		14.61%			15.57%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,535			$2,478			$627			$1,082			$8,326			$7,270
Ratios to average net assets:
Net investment income (loss)		(0.87%	)		(0.24%	)		1.58%			0.88%			0.33%			(0.35%	)
Total expenses		2.28%			2.29%			2.29%			2.28%			2.28%			2.25%
Portfolio turnover rate		143%			443%			977%			297%			625%			558%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    153

  S&P MIDCAP 400 PURE VALUE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$30.43			$13.67			$29.71			$36.58			$31.82			$27.49
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		.10			.47			.35			.46			.07
Net gain (loss) on securities (realized and unrealized)		(1.91	)		16.76			(16.51	)		(6.29	)		4.46			4.45
Total from investment operations		(1.95	)		16.86			(16.04	)		(5.94	)		4.92			4.52
Less distributions:
Distributions from net investment income		—			(.10	)		—			(.93	)		—			(—	)d
Distributions from realized gains		—			—			—			—			(.16	)		(.19	)
Total distributions		—			(.10	)		—			(.93	)		(.16	)		(.19	)
Net asset value, end of period		$28.48			$30.43			$13.67			$29.71			$36.58			$31.82
Total Returnc		(6.41%	)		123.43%			(53.99%	)		(16.48%	)		15.49%			16.47%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$50,148			$199,458			$3,985			$6,512			$76,513			$31,340
Ratios to average net assets:
Net investment income (loss)		(0.24%	)		0.37%			2.01%			0.96%			1.39%			0.25%
Total expenses		1.53%			1.53%			1.54%			1.54%			1.52%			1.48%
Portfolio turnover rate		143%			443%			977%			297%			625%			558%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return, and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Less than $.01 per share.

154    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

S&P SMALLCAP 600 PURE GROWTH FUND

OBJECTIVE: To provide investment results that match the performance of a benchmark for small-cap growth securities. The Fund’s current benchmark is the S&P SmallCap 600 Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Sourcefire, Inc.	1.7	%
Dolan Co.	1.5	%
CROCS, Inc.	1.5	%
TriQuint Semiconductor, Inc.	1.4	%
Ebix, Inc.	1.4	%
Andersons, Inc.	1.3	%
Wright Express Corp.	1.3	%
comScore, Inc.	1.2	%
Medifast, Inc.	1.2	%
Netscout Systems, Inc.	1.2	%
Top Ten Total	13.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    155

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  S&P SMALLCAP 600 PURE GROWTH FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.6%
INFORMATION TECHNOLOGY - 32.7%
Sourcefire, Inc.*		7,030	$	202,745
TriQuint Semiconductor, Inc.*		17,619		169,142
Ebix, Inc.*		6,985		163,798
Wright Express Corp.*		4,225		150,875
comScore, Inc.*		6,391		150,316
Netscout Systems, Inc.*		7,126		146,154
Volterra Semiconductor Corp.*		6,230		134,070
Radiant Systems, Inc.*		7,831		133,910
Perficient, Inc.*		14,592		133,371
MicroStrategy, Inc. — Class A*		1,478		128,010
Blue Coat Systems, Inc.*		5,159		124,126
CommVault Systems, Inc.*		4,206		109,482
Interactive Intelligence, Inc.*		5,855		103,048
Diodes, Inc.*		5,910		101,002
Novatel Wireless, Inc.*		12,661		99,769
Compellent Technologies, Inc.*		5,114		92,973
Hittite Microwave Corp.*		1,900		90,535
Blackbaud, Inc.		3,654		87,842
Smith Micro Software, Inc.*		8,611		85,593
TTM Technologies, Inc.*		8,597		84,165
Sigma Designs, Inc.*		7,201		82,739
Monolithic Power Systems, Inc.*		4,993		81,536
Synaptics, Inc.*		2,790		78,511
Concur Technologies, Inc.*		1,553		76,780
Taleo Corp. — Class A*		2,626		76,128
Tessera Technologies, Inc.*		3,789		70,097
Manhattan Associates, Inc.*		2,318		68,033
Stratasys, Inc.*		2,287		63,396
JDA Software Group, Inc.*		2,445		62,005
Tyler Technologies, Inc.*		3,007		60,621
Netgear, Inc.*		2,222		60,016
Epicor Software Corp.*		6,813		59,273
TeleTech Holdings, Inc.*		3,785		56,169
Mercury Computer Systems, Inc.*		4,502		54,159
CSG Systems International, Inc.*		2,934		53,487
Veeco Instruments, Inc.*		1,525		53,177
j2 Global Communications, Inc.*		2,217		52,742
DealerTrack Holdings, Inc.*		2,852		48,712
Websense, Inc.*		2,402		42,611
Kopin Corp.*		11,860		42,103
Stamps.com, Inc.*		2,898		37,674
MAXIMUS, Inc.		589		36,271
Pericom Semiconductor Corp.*		4,073		35,394
Cymer, Inc.*		868		32,185
FARO Technologies, Inc.*		1,349		29,422
Knot, Inc.*		2,450		22,369
Total Information Technology				3,926,536
CONSUMER DISCRETIONARY - 23.8%
CROCS, Inc.*		13,679		177,964
Deckers Outdoor Corp.*		2,747		137,240
Lumber Liquidators Holdings, Inc.*		5,403		132,752

			MARKET
	SHARES		VALUE
Iconix Brand Group, Inc.*		7,136	$	124,880
BJ’s Restaurants, Inc.*		4,339		122,186
Texas Roadhouse, Inc. — Class A*		8,276		116,361
Cracker Barrel Old Country Store, Inc.		2,261		114,768
Coinstar, Inc.*		2,656		114,181
Jos A. Bank Clothiers, Inc.*		2,656		113,172
Buffalo Wild Wings, Inc.*		2,291		109,716
True Religion Apparel, Inc.*		5,001		106,721
HSN, Inc.*		3,178		95,022
National Presto Industries, Inc.		875		93,161
Zumiez, Inc.*		4,360		92,258
Sturm Ruger & Company, Inc.		6,731		91,811
PF Chang’s China Bistro, Inc.		1,863		86,071
Volcom, Inc.*		4,408		84,281
Blue Nile, Inc.*		1,837		81,728
CEC Entertainment, Inc.*		2,295		78,787
California Pizza Kitchen, Inc.*		4,393		74,945
Steven Madden Ltd.*		1,810		74,319
Gymboree Corp.*		1,662		69,039
NutriSystem, Inc.		3,541		68,129
Peet’s Coffee & Tea, Inc.*		1,572		53,810
Monro Muffler Brake, Inc.		1,114		51,367
Polaris Industries, Inc.		784		51,038
Big 5 Sporting Goods Corp.		3,763		50,499
Kirkland’s, Inc.*		3,590		49,757
Buckle, Inc.		1,738		46,127
Hibbett Sports, Inc.*		1,691		42,190
Capella Education Co.*		536		41,604
Interval Leisure Group, Inc.*		3,070		41,353
Arbitron, Inc.		1,303		36,445
Universal Electronics, Inc.*		1,540		32,109
Total Consumer Discretionary				2,855,791
HEALTH CARE - 15.6%
Quality Systems, Inc.		1,787		118,496
HMS Holdings Corp.*		1,855		109,334
American Medical Systems Holdings, Inc.*		5,269		103,167
Regeneron Pharmaceuticals, Inc.*		3,696		101,270
Hi-Tech Pharmacal Company, Inc.*		4,796		97,071
Salix Pharmaceuticals Ltd.*		2,415		95,924
Align Technology, Inc.*		4,834		94,650
Cooper Companies, Inc.		2,037		94,150
IPC The Hospitalist Company, Inc.*		3,229		88,216
Catalyst Health Solutions, Inc.*		2,477		87,215
Air Methods Corp.*		2,030		84,407
Healthways, Inc.*		5,886		68,513
Integra LifeSciences Holdings Corp.*		1,699		67,043
Cubist Pharmaceuticals, Inc.*		2,770		64,790
Natus Medical, Inc.*		4,445		64,764
Par Pharmaceutical Companies, Inc.*		2,074		60,312
RehabCare Group, Inc.*		2,837		57,364
Bio-Reference Labs, Inc.*		2,400		50,064

156    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  S&P SMALLCAP 600 PURE GROWTH FUND

			MARKET
	SHARES		VALUE
Neogen Corp.*		1,379	$	46,679
Abaxis, Inc.*		1,936		44,722
Cantel Medical Corp.		2,561		41,488
Dionex Corp.*		475		41,059
LHC Group, Inc.*		1,531		35,504
Zoll Medical Corp.*		1,062		34,271
Amedisys, Inc.*		1,431		34,058
Enzo Biochem, Inc.*		8,387		31,871
Genoptix, Inc.*		1,987		28,215
Almost Family, Inc.*		862		25,541
Total Health Care				1,870,158
FINANCIALS - 7.3%
World Acceptance Corp.*		2,384		105,277
Portfolio Recovery Associates, Inc.*		1,318		85,209
DiamondRock Hospitality Co.*		8,655		82,136
Medical Properties Trust, Inc.		6,822		69,175
optionsXpress Holdings, Inc.*		4,497		69,074
First Cash Financial Services, Inc.*		2,307		64,019
eHealth, Inc.*		4,881		63,063
Signature Bank *		1,603		62,261
Stifel Financial Corp.*		1,322		61,195
Tower Group, Inc.		2,326		54,312
Cash America International, Inc.		1,488		52,080
Forestar Group, Inc.*		2,761		47,075
Acadia Realty Trust		2,170		41,230
TradeStation Group, Inc.*		4,055		26,682
Total Financials				882,788
CONSUMER STAPLES - 6.6%
Andersons, Inc.		4,274		161,985
Medifast, Inc.*		5,514		149,595
TreeHouse Foods, Inc.*		2,416		111,377
Darling International, Inc.*		12,258		104,438
Boston Beer Company, Inc. — Class A*		1,176		78,639
Cal-Maine Foods, Inc.		2,304		66,770
Calavo Growers, Inc.		2,931		63,544
Sanderson Farms, Inc.		1,330		57,576
Total Consumer Staples				793,924
ENERGY - 5.1%
Oil States International, Inc.*		2,630		122,427
Dril-Quip, Inc.*		1,802		111,922
Tetra Technologies, Inc.*		9,937		101,358
Hornbeck Offshore Services, Inc.*		3,970		77,375
Gulf Island Fabrication, Inc.		3,829		69,688
SM Energy Co.		1,453		54,429
CARBO Ceramics, Inc.		503		40,743
Lufkin Industries, Inc.		928		40,739
Total Energy				618,681

			MARKET
	SHARES		VALUE
INDUSTRIALS - 5.0%
Dolan Co.*		16,006	$	181,988
Orion Marine Group, Inc.*		8,720		108,215
AZZ, Inc.		2,497		106,972
Allegiant Travel Co. — Class A		1,197		50,657
GenCorp, Inc.*		9,731		47,877
AAON, Inc.		1,488		34,998
Heidrick & Struggles International, Inc.		1,653		32,200
SYKES Enterprises, Inc.*		1,738		23,602
Tetra Tech, Inc.*		963		20,194
Total Industrials				606,703
MATERIALS - 2.7%
Kaiser Aluminum Corp.		3,010		128,798
Balchem Corp.		3,199		98,721
Schweitzer-Mauduit International, Inc.		982		57,261
AMCOL International Corp.		1,439		37,687
Total Materials				322,467
TELECOMMUNICATION SERVICES - 0.8%
NTELOS Holdings Corp.		3,044		51,504
Cbeyond, Inc.*		3,270		41,954
Total Telecommunication Services				93,458
Total Common Stocks
(Cost $8,636,210)				11,970,506
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 1.2%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	55,388		55,388
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		55,327		55,327
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		22,862		22,862
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		5,841		5,841
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		5,716		5,716
Total Repurchase Agreements (Cost $145,134)				145,134
Total Investments – 100.8% (Cost $8,781,344)			$	12,115,640
Liabilities, Less Cash & Other Assets – (0.8)%				(91,600	)
Total Net Assets – 100.0%			$	12,024,040

*	Non-Income Producing Security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    157

  S&P SMALLCAP 600 PURE GROWTH FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	11,970,506
Repurchase agreement, at value		145,134
Total investments		12,115,640
Receivables:
Fund shares sold		74,536
Dividends		4,381
Total assets		12,194,557
Liabilities:
Payable for:
Securities purchased		149,747
Fund shares redeemed		33
Management fees		6,901
Custodian fees		309
Transfer agent/maintenance fees		2,300
Distribution and service fees		2,735
Portfolio accounting fees		920
Other		7,572
Total liabilities		170,517
Net assets	$	12,024,040
Net assets consist of:
Paid in capital		19,940,035
Accumulated net investment loss		(106,268	)
Accumulated net realized loss on sale of investments		(11,144,023	)
Net unrealized appreciation in value of investments		3,334,296
Net assets		12,024,040
A-Class:
Net assets	$	742,671
Capital shares outstanding		25,777
Net asset value per share		$28.81
Maximum offering price per share*		$30.25
C-Class:
Net assets	$	938,244
Capital shares outstanding		34,143
Net asset value per share		$27.48
H-Class:
Net assets	$	10,343,125
Capital shares outstanding		358,709
Net asset value per share		$28.83
Investments, at cost	$	8,636,210
Repurchase agreement, at cost		145,134
Total cost	$	8,781,344

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	29,028
Interest		126
Total investment income		29,154
Expenses:
Management fees		64,450
Transfer agent and administrative fees		21,483
Distribution and Service Fees:
A-Class		2,548
C-Class		5,302
H-Class		17,610
Portfolio accounting fees		8,593
Trustees’ fees**		675
Miscellaneous		14,761
Total expenses		135,422
Net investment loss		(106,268	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(3,029,029	)
Net realized loss		(3,029,029	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		121,577
Net unrealized appreciation		121,577
Net loss		(2,907,452	)
Net decrease in net assets resulting from operations	$	(3,013,720	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

158    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P SMALLCAP 600 PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(106,268	)	$	(199,998	)
Net realized gain (loss) during the period on investments		(3,029,029	)		153,042
Net unrealized appreciation during the period on investments		121,577			3,107,538
Net increase (decrease) in net assets resulting from operations		(3,013,720	)		3,060,582
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		16,699,961			3,568,200
C-Class		1,249,010			8,283,398
H-Class		127,894,762			253,545,313
Cost of shares redeemed
A-Class		(16,531,276	)		(3,442,305	)
C-Class		(1,915,276	)		(7,191,912	)
H-Class		(124,839,081	)		(255,624,703	)
Net increase (decrease) from capital share transactions		2,558,100			(862,009	)
Net increase (decrease) in net assets		(455,620	)		2,198,573
Net assets:
Beginning of period		12,479,660			10,281,087
End of period	$	12,024,040		$	12,479,660
Accumulated net investment loss at end of period	$	(106,268	)	$	—
Capital share activity:
Shares sold
A-Class		598,617			155,596
C-Class		44,580			363,530
H-Class		4,571,736			10,382,727
Shares redeemed
A-Class		(599,166	)		(136,174	)
C-Class		(71,261	)		(325,346	)
H-Class		(4,566,680	)		(10,607,235	)
Total capital share activity		(22,174	)		(166,902	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    159

  S&P SMALLCAP 600 PURE GROWTH FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$28.49			$16.93			$27.43			$32.61			$32.25			$27.96
Income (loss) from investment operations:
Net investment lossb		(.16	)		(.28	)		(.19	)		(.13	)		(.29	)		(.18	)
Net gain (loss) on securities (realized and unrealized)		.48			11.84			(10.31	)		(3.72	)		.65			5.27
Total from investment operations		.32			11.56			(10.50	)		(3.85	)		.36			5.09
Less distributions:
Distributions from realized gains		—			—			—			(1.33	)		—			(.80	)
Total distributions		—			—			—			(1.33	)		—			(.80	)
Net asset value, end of period		$28.81			$28.49			$16.93			$27.43			$32.61			$32.25
Total Returnc		1.12%			68.28%			(38.28%	)		(12.27%	)		1.12%			18.41%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$743			$750			$117			$1,938			$1,408			$943
Ratios to average net assets:
Net investment loss		(1.22%	)		(1.15%	)		(0.73%	)		(0.40%	)		(0.93%	)		(0.61%	)
Total expenses		1.52%			1.54%			1.54%			1.52%			1.56%			1.47%
Portfolio turnover rate		663%			1,476%			1,066%			834%			623%			1,003%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.25			$16.32			$26.65			$31.94			$31.82			$27.78
Income (loss) from investment operations:
Net investment lossb		(.26	)		(.42	)		(.32	)		(.51	)		(.58	)		(.47	)
Net gain (loss) on securities (realized and unrealized)		.49			11.35			(10.01	)		(3.45	)		.70			5.31
Total from investment operations		.23			10.93			(10.33	)		(3.96	)		.12			4.84
Less distributions:
Distributions from realized gains		—			—			—			(1.33	)		—			(.80	)
Total distributions		—			—			—			(1.33	)		—			(.80	)
Net asset value, end of period		$27.48			$27.25			$16.32			$26.65			$31.94			$31.82
Total Returnc		0.84%			66.97%			(38.76%	)		(12.88%	)		0.38%			17.63%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$938			$1,658			$369			$1,980			$7,570			$5,972
Ratios to average net assets:
Net investment loss		(1.91%	)		(1.82%	)		(1.28%	)		(1.57%	)		(1.83%	)		(1.57%	)
Total expenses		2.28%			2.28%			2.29%			2.29%			2.32%			2.27%
Portfolio turnover rate		663%			1,476%			1,066%			834%			623%			1,003%

160    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  S&P SMALLCAP 600 PURE GROWTH FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$28.48			$16.94			$27.45			$32.62			$32.27			$27.97
Income (loss) from investment operations:
Net investment lossb		(.17	)		(.25	)		(.13	)		(.26	)		(.33	)		(.22	)
Net gain (loss) on securities (realized and unrealized)		.52			11.79			(10.38	)		(3.58	)		.68			5.32
Total from investment operations		.35			11.54			(10.51	)		(3.84	)		.35			5.10
Less distributions:
Distributions from realized gains		—			—			—			(1.33	)		—			(.80	)
Total distributions		—			—			—			(1.33	)		—			(.80	)
Net asset value, end of period		$28.83			$28.48			$16.94			$27.45			$32.62			$32.27
Total Returnc		1.23%			68.12%			(38.29%	)		(12.23%	)		1.08%			18.44%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,343			$10,072			$9,795			$6,259			$18,171			$73,489
Ratios to average net assets:
Net investment loss		(1.19%	)		(1.05%	)		(0.55%	)		(0.79%	)		(1.05%	)		(0.73%	)
Total expenses		1.53%			1.53%			1.56%			1.53%			1.53%			1.50%
Portfolio turnover rate		663%			1,476%			1,066%			834%			623%			1,003%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment loss was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    161

FUND PROFILE (Unaudited)

September 30, 2010

S&P SMALLCAP 600 PURE VALUE FUND

OBJECTIVE: To provide investment results that match the performance of a benchmark for small-cap value securities. The Fund’s current benchmark is the S&P SmallCap 600 Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Quiksilver, Inc.	3.5	%
Tuesday Morning Corp.	2.7	%
Osteotech, Inc.	1.8	%
National Financial Partners Corp.	1.8	%
Jakks Pacific, Inc.	1.7	%
NCI Building Systems, Inc.	1.7	%
Petroleum Development Corp.	1.6	%
Basic Energy Services, Inc.	1.5	%
Ciber, Inc.	1.5	%
Arctic Cat, Inc.	1.4	%
Top Ten Total	19.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

162    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  S&P SMALLCAP 600 PURE VALUE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.7%
CONSUMER DISCRETIONARY - 27.3%
Quiksilver, Inc.*		171,392	$	670,143
Tuesday Morning Corp.*		106,098		506,087
Jakks Pacific, Inc.*		18,504		326,411
Arctic Cat, Inc.*		24,950		255,738
Perry Ellis International, Inc.*		11,638		254,290
Ruby Tuesday, Inc.*		21,015		249,448
Fred’s, Inc. — Class A		18,258		215,444
Cabela’s, Inc.*		11,085		210,393
Red Robin Gourmet Burgers, Inc.*		9,447		185,256
PEP Boys-Manny Moe & Jack		17,023		180,103
Group 1 Automotive, Inc.*		6,012		179,639
Standard Motor Products, Inc.		13,771		145,009
Landry’s Restaurants, Inc.*		5,310		130,042
Audiovox Corp. — Class A*		18,687		127,819
Movado Group, Inc.*		11,604		126,252
Blyth, Inc.		3,034		125,122
Callaway Golf Co.		17,513		122,591
HOT Topic, Inc.		20,156		120,734
Finish Line, Inc. — Class A		8,185		113,853
Brown Shoe Company, Inc.		9,032		103,597
Lithia Motors, Inc. — Class A		10,239		98,192
Christopher & Banks Corp.		11,638		92,057
Stage Stores, Inc.		6,297		81,861
Live Nation Entertainment, Inc.*		7,775		76,817
O’Charleys, Inc.*		10,313		74,150
Superior Industries International, Inc.		4,216		72,853
Zale Corp.*		32,948		69,191
Haverty Furniture Companies, Inc.		5,775		63,005
MarineMax, Inc.*		8,851		62,311
K-Swiss, Inc. — Class A*		4,867		62,054
Nautilus, Inc.*		41,564		55,280
Total Consumer Discretionary				5,155,742
INDUSTRIALS - 21.1%
NCI Building Systems, Inc.*		33,295		317,301
Bowne & Company, Inc.		20,684		234,350
Lydall, Inc.*		30,240		222,566
Kelly Services, Inc. — Class A*		17,497		205,240
CDI Corp.		15,764		203,671
Volt Information Sciences, Inc.*		25,629		184,529
Skywest, Inc.		12,964		180,977
Federal Signal Corp.		29,070		156,687
Viad Corp.		7,386		142,845
EMCOR Group, Inc.*		5,588		137,409
Dycom Industries, Inc.*		13,574		135,604
Ceradyne, Inc.*		5,791		135,220
ABM Industries, Inc.		5,622		121,379
EnPro Industries, Inc.*		3,767		117,832
SFN Group, Inc.*		18,717		112,489
United Stationers, Inc.*		1,927		103,114
Mueller Industries, Inc.		3,822		101,245
Lawson Products, Inc.		6,015		91,849

			MARKET
	SHARES		VALUE
Arkansas Best Corp.		3,742	$	90,669
Cascade Corp.		2,396		76,193
Standex International Corp.		3,080		74,505
Griffon Corp.*		6,105		74,420
Comfort Systems USA, Inc.		6,926		74,316
Encore Wire Corp.		3,614		74,123
Gibraltar Industries, Inc.*		7,968		71,553
Moog, Inc. — Class A*		2,008		71,304
AAR Corp.*		3,568		66,579
Universal Forest Products, Inc.		2,225		65,081
Standard Register Co.		21,572		62,990
Tredegar Corp.		3,229		61,286
School Specialty, Inc.*		4,494		58,467
Astec Industries, Inc.*		1,973		56,290
Apogee Enterprises, Inc.		5,697		52,128
Briggs & Stratton Corp.		2,550		48,475
Total Industrials				3,982,686
FINANCIALS - 18.5%
National Financial Partners Corp.*		26,221		332,220
Susquehanna Bancshares, Inc.		30,108		254,112
Pennsylvania Real Estate Investment Trust		17,672		209,590
Kite Realty Group Trust		46,209		205,168
Lexington Realty Trust		23,588		168,890
National Penn Bancshares, Inc.		26,121		163,256
First Commonwealth Financial Corp.		29,005		158,077
Whitney Holding Corp.		18,625		152,166
Hanmi Financial Corp.*		116,780		149,478
LaBranche & Company, Inc.*		37,608		146,671
Stewart Information Services Corp.		10,203		115,498
Interactive Brokers Group, Inc. — Class A*		6,177		106,306
Horace Mann Educators Corp.		5,627		100,048
Umpqua Holdings Corp.		8,380		95,029
Pinnacle Financial Partners, Inc.*		10,300		94,657
Rewards Network, Inc.		6,422		92,156
Sterling Bancshares, Inc.		16,870		90,592
Selective Insurance Group, Inc.		5,089		82,900
Cedar Shopping Centers, Inc.		13,626		82,846
Colonial Properties Trust		4,962		80,335
First Midwest Bancorp, Inc.		6,834		78,796
United Fire & Casualty Co.		3,502		74,277
Presidential Life Corp.		7,145		70,021
United Community Banks, Inc.*		30,191		67,628
East West Bancorp, Inc.		4,152		67,595
Sterling Bancorp — Class N		7,455		64,784
Wintrust Financial Corp.		1,962		63,588
Safety Insurance Group, Inc.		1,372		57,652
First BanCorp*		119,408		33,434
SWS Group, Inc.		4,628		33,183
Total Financials				3,490,953

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    163

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  S&P SMALLCAP 600 PURE VALUE FUND

			MARKET
	SHARES		VALUE
HEALTH CARE - 9.4%
Osteotech, Inc.*		53,497	$	345,591
Molina Healthcare, Inc.*		8,881		239,698
Medcath Corp.*		22,577		227,350
Res-Care, Inc.*		14,548		193,052
Centene Corp.*		6,499		153,312
AMERIGROUP Corp.*		3,305		140,363
AMN Healthcare Services, Inc.*		22,566		115,989
Healthspring, Inc.*		4,417		114,135
PharMerica Corp.*		8,032		76,545
Kendle International, Inc.*		6,788		63,264
Symmetry Medical, Inc.*		5,743		55,363
Gentiva Health Services, Inc.*		2,075		45,339
Total Health Care				1,770,001
INFORMATION TECHNOLOGY - 7.2%
Ciber, Inc.*		93,086		280,189
Gerber Scientific, Inc.*		36,975		228,136
SYNNEX Corp.*		5,723		161,045
EMS Technologies, Inc.*		7,414		138,123
Heartland Payment Systems, Inc.		8,239		125,398
Black Box Corp.		3,710		118,943
Scansource, Inc.*		3,449		95,675
Insight Enterprises, Inc.*		5,416		84,706
CTS Corp.		7,949		76,469
Digi International, Inc.*		5,506		52,252
Total Information Technology				1,360,936
ENERGY - 5.7%
Petroleum Development Corp.*		10,681		294,796
Basic Energy Services, Inc.*		33,960		289,339
World Fuel Services Corp.		4,705		122,377
Matrix Service Co.*		10,901		95,384
Seahawk Drilling, Inc.*		10,703		90,547
Penn Virginia Corp.		5,393		86,504
Pioneer Drilling Co.*		7,898		50,389
Bristow Group, Inc.*		1,335		48,167
Total Energy				1,077,503
CONSUMER STAPLES - 4.8%
Nash Finch Co.		4,930		209,722
Spartan Stores, Inc.		12,057		174,826
Alliance One International, Inc.*		36,732		152,438
Central Garden and Pet Co. — Class A*		11,035		114,322
Mannatech, Inc.*		42,313		86,742
United Natural Foods, Inc.*		2,440		80,862
Casey’s General Stores, Inc.		1,458		60,871
Great Atlantic & Pacific Tea Co.*		7,208		28,544
Total Consumer Staples				908,327

			MARKET
	SHARES		VALUE
MATERIALS - 4.1%
AM Castle & Co.*		12,596	$	166,897
Olympic Steel, Inc.		5,389		123,893
Century Aluminum Co.*		8,700		114,579
A. Schulman, Inc.		5,041		101,576
Quaker Chemical Corp.		3,023		98,429
OM Group, Inc.*		3,054		91,986
Myers Industries, Inc.		5,372		46,146
Penford Corp.*		6,935		31,970
Total Materials				775,476
UTILITIES - 1.6%
Laclede Group, Inc.		2,421		83,331
Southwest Gas Corp.		1,903		63,922
Central Vermont Public Service Corp.		2,902		58,533
CH Energy Group, Inc.		1,303		57,541
New Jersey Resources Corp.		1,228		48,162
Total Utilities				311,489
Total Common Stocks (Cost $13,395,214)				18,833,113
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 0.8%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		$62,757		62,757
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		62,687		62,687
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		25,904		25,904
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		6,618		6,618
Deutsche Bank
issued 09/30/10 at 0.20% due 10/01/10		6,476		6,476
Total Repurchase Agreements (Cost $164,442)				164,442
Total Investments – 100.5% (Cost $13,559,656)			$	18,997,555
Liabilities, Less Cash & Other Assets – (0.5)%				(103,300	)
Total Net Assets – 100.0%			$	18,894,255

*	Non-Income Producing Security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

164    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  S&P SMALLCAP 600 PURE VALUE FUND

STATEMENT OF ASSETS

AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	18,833,113
Repurchase agreement, at value		164,442
Total investments		18,997,555
Receivables:
Securities sold		453,575
Fund shares sold		5,677
Dividends		12,631
Total assets		19,469,438
Liabilities:
Payable for:
Fund shares redeemed		493,715
Management fees		11,616
Custodian fees		512
Transfer agent/maintenance fees		3,872
Distribution and service fees		6,103
Portfolio accounting fees		1,549
Other		57,816
Total liabilities		575,183
Net assets	$	18,894,255
Net assets consist of:
Paid in Capital		51,239,619
Accumulated net investment loss		(270,819	)
Accumulated net realized loss on sale of investments		(37,512,444	)
Net unrealized appreciation in value of investments		5,437,899
Net assets		18,894,255
A-Class:
Net assets	$	1,108,413
Capital shares outstanding		65,676
Net asset value per share		$16.88
Maximum offering price per share*		$17.72
C-Class:
Net assets	$	3,300,871
Capital shares outstanding		210,565
Net asset value per share		$15.68
H-Class:
Net assets	$	14,484,971
Capital shares outstanding		859,597
Net asset value per share		$16.85
Investments, at cost	$	13,395,214
Repurchase agreement, at cost		164,442
Total cost	$	13,559,656

STATEMENT OF

OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends	$	641,723
Interest		609
Total investment income		642,332
Expenses:
Management fees		434,116
Transfer agent and administrative fees		144,705
Distribution and Service Fees:
A-Class		12,781
C-Class		32,274
H-Class		123,856
Portfolio accounting fees		56,812
Trustees’ fees**		8,122
Miscellaneous		100,485
Total expenses		913,151
Net investment loss		(270,819	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(37,253,217	)
Net realized loss		(37,253,217	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(22,901,503	)
Net unrealized depreciation		(22,901,503	)
Net loss		(60,154,720	)
Net decrease in net assets resulting from operations	$	(60,425,539	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    165

  S&P SMALLCAP 600 PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(270,819	)	$	(710,501	)
Net realized gain (loss) during the period on investments		(37,253,217	)		54,985,784
Net unrealized appreciation (depreciation) during the period on investments		(22,901,503	)		28,055,856
Net increase (decrease) in net assets resulting from operations		(60,425,539	)		82,331,139
Distributions to shareholders from:
Net investment income
A-Class		—			(2,176	)
C-Class		—			(6,861	)
H-Class		—			(24,519	)
Net realized gain
A-Class		—			(405,806	)
C-Class		—			(1,279,703	)
H-Class		—			(4,573,281	)
Total distributions to shareholders		—			(6,292,346	)
Capital share transactions:
Proceeds from sale of shares
A-Class		70,795,022			17,811,935
C-Class		8,107,326			17,970,003
H-Class		297,310,513			675,923,538
Distributions reinvested
A-Class		—			378,723
C-Class		—			1,265,910
H-Class		—			4,505,083
Cost of shares redeemed
A-Class		(66,295,441	)		(13,385,823	)
C-Class		(12,101,244	)		(10,602,354	)
H-Class		(449,524,796	)		(561,136,010	)
Net increase (decrease) from capital share transactions		(151,708,620	)		132,731,005
Net increase (decrease) in net assets		(212,134,159	)		208,769,798
Net assets:
Beginning of period		231,028,414			22,258,616
End of period	$	18,894,255		$	231,028,414
Accumulated net investment loss at end of period	$	(270,819	)	$	—
Capital share activity:
Shares sold
A-Class		3,906,730			908,146
C-Class		443,935			931,519
H-Class		14,846,364			37,195,475
Shares reinvested
A-Class		—			23,065
C-Class		—			82,523
H-Class		—			274,868
Shares redeemed
A-Class		(4,123,094	)		(656,235	)
C-Class		(725,957	)		(586,486	)
H-Class		(25,049,196	)		(28,348,540	)
Total capital share activity		(10,701,218	)		9,824,335

166    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

2

  S&P SMALLCAP 600 PURE VALUE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$19.60			$11.08			$26.56			$35.54			$33.40			$28.22
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.13	)		.50			.26			.23			(.03	)
Net gain (loss) on securities (realized and unrealized)		(2.66	)		15.44			(15.61	)		(8.97	)		1.94			5.71
Total from investment operations		(2.72	)		15.31			(15.11	)		(8.71	)		2.17			5.68
Less distributions:
Distributions from net investment income		—			(.03	)		(.37	)		(.27	)		—			—
Distributions from realized gains		—			(6.76	)		—			—			(.03	)		(.50	)
Total distributions		—			(6.79	)		(.37	)		(.27	)		(.03	)		(.50	)
Net asset value, end of period		$16.88			$19.60			$11.08			$26.56			$35.54			$33.40
Total Returnc		(13.88%	)		150.09%			(57.21%	)		(24.54%	)		6.49%			20.35%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,108			$5,529			$78			$2,945			$3,929			$335
Ratios to average net assets:
Net investment income (loss)		(0.68%	)		(0.62%	)		2.04%			0.82%			0.66%			(0.11%	)
Total expenses		1.52%			1.53%			1.54%			1.53%			1.51%			1.46%
Portfolio turnover rate		258%			443%			878%			566%			728%			806%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$18.27			$10.62			$25.71			$34.68			$32.85			$28.01
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.27	)		.04			.28			(.05	)		(.18	)
Net gain (loss) on securities (realized and unrealized)		(2.48	)		14.71			(14.76	)		(8.98	)		1.91			5.52
Total from investment operations		(2.59	)		14.44			(14.72	)		(8.70	)		1.86			5.34
Less distributions:
Distributions from net investment income		—			(.03	)		(.37	)		(.27	)		—			—
Distributions from realized gains		—			(6.76	)		—			—			(.03	)		(.50	)
Total distributions		—			(6.79	)		(.37	)		(.27	)		(.03	)		(.50	)
Net asset value, end of period		$15.68			$18.27			$10.62			$25.71			$34.68			$32.85
Total Returnc		(14.18%	)		148.23%			(57.59%	)		(25.12%	)		5.65%			19.29%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,301			$8,999			$691			$14,040			$2,268			$18,779
Ratios to average net assets:
Net investment income (loss)		(1.29%	)		(1.39%	)		0.21%			0.99%			(0.16%	)		(0.60%	)
Total expenses		2.28%			2.28%			2.32%			2.26%			2.26%			2.27%
Portfolio turnover rate		258%			443%			878%			566%			728%			806%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    167

3

  S&P SMALLCAP 600 PURE VALUE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$19.57			$11.07			$26.53			$35.51			$33.38			$28.24
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.12	)		.27			.33			.15			.06
Net gain (loss) on securities (realized and unrealized)		(2.68	)		15.41			(15.36	)		(9.04	)		2.01			5.58
Total from investment operations		(2.72	)		15.29			(15.09	)		(8.71	)		2.16			5.64
Less distributions:
Distributions from net investment income		—			(.03	)		(.37	)		(.27	)		—			—
Distributions from realized gains		—			(6.76	)		—			—			(.03	)		(.50	)
Total distributions		—			(6.79	)		(.37	)		(.27	)		(.03	)		(.50	)
Net asset value, end of period		$16.85			$19.57			$11.07			$26.53			$35.51			$33.38
Total Returnc		(13.90%	)		150.07%			(57.20%	)		(24.56%	)		6.46%			20.20%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$14,485			$216,500			$21,489			$51,563			$10,478			$102,448
Ratios to average net assets:
Net investment income (loss)		(0.39%	)		0.62%			1.40%			1.04%			0.46%			0.19%
Total expenses		1.54%			1.54%			1.55%			1.48%			1.52%			1.50%
Portfolio turnover rate		258%			443%			878%			566%			728%			806%

a	Unaudited figures for the six months ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

168    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

4

FUND PROFILE (Unaudited)

September 30, 2010

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX 50^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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

Ten Largest Holdings (% of Total Net Assets)
Novartis AG ADR	5.7	%
Total S.A. ADR	4.7	%
HSBC Holdings plc ADR	3.9	%
France Telecom S.A. ADR	3.3	%
ENI SpA ADR	3.0	%
Royal Dutch Shell plc ADR	2.9	%
Vodafone Group plc ADR	2.9	%
Siemens AG ADR	2.8	%
BP plc ADR	2.8	%
Banco Santander S.A. ADR	2.8	%
Top Ten Total	34.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    169

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  EUROPE 1.25x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 68.0%
FINANCIALS - 15.4%
HSBC Holdings plc ADR		17,800	$	900,502
Banco Santander S.A. ADR		51,560		652,750
Deutsche Bank AG		7,260		398,792
Banco Bilbao Vizcaya Argentaria S.A. ADR		28,850		388,898
UBS AG		21,730		370,062
Credit Suisse Group AG ADR		8,010		340,906
Barclays plc ADR		16,410		309,328
ING Groep N.V. ADR		20,700		213,003
Total Financials				3,574,241
ENERGY - 13.4%
Total S.A. ADR		20,820		1,074,312
ENI SpA ADR		16,180		698,652
Royal Dutch Shell plc ADR		11,160		672,948
BP plc ADR		15,940		656,250
Total Energy				3,102,162
HEALTH CARE - 12.1%
Novartis AG ADR		23,000		1,326,410
GlaxoSmithKline plc ADR		13,980		552,490
AstraZeneca plc ADR		9,920		502,944
Sanofi-Aventis S.A. ADR		9,110		302,907
Alcon, Inc.		690		115,085
Total Health Care				2,799,836
TELECOMMUNICATION SERVICES - 9.9%
France Telecom S.A. ADR		35,940		773,788
Vodafone Group plc ADR		26,800		664,908
Telefonica S.A. ADR		8,630		639,914
Deutsche Telekom AG ADR		16,020		218,353
Total Telecommunication Services				2,296,963
MATERIALS - 5.0%
Rio Tinto plc ADR		9,080		533,268
BHP Billiton Ltd. ADR		5,790		441,893
ArcelorMittal		5,810		191,614
Total Materials				1,166,775
CONSUMER STAPLES - 4.0%
Unilever N.V.		11,750		351,090
Diageo plc ADR		4,970		342,980
British American Tobacco plc ADR		3,310		247,290
Total Consumer Staples				941,360
INDUSTRIALS - 2.8%
Siemens AG ADR		6,250		658,750
INFORMATION TECHNOLOGY - 2.8%
SAP AG ADR		5,540		273,177
Telefonaktiebolaget LM Ericsson ADR		17,610		193,182
Nokia Oyj ADR		17,320		173,720
Total Information Technology				640,079

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY - 1.9%
Daimler AG		6,830	$	432,339
UTILITIES - 0.7%
Veolia Environnement ADR		6,470		170,549
Total Common Stocks (Cost $14,198,605)				15,783,054
RIGHTS†† - 0.1%
FINANCIALS - 0.1%
Deutsche Bank AG Expires, 10/05/10		5,510		22,701
Total Rights (Cost $28,594)				22,701
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,1 - 26.0%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	2,306,409		2,306,409
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		2,303,841		2,303,841
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		952,000		952,000
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		243,228		243,228
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		238,000		238,000
Total Repurchase Agreements (Cost $6,043,478)				6,043,478
Total Investments – 94.1% (Cost $20,270,677)			$	21,849,233
Cash & Other Assets, Less Liabilities – 5.9%				1,375,087
Total Net Assets – 100.0%			$	23,224,320

170    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  EUROPE 1.25x STRATEGY FUND

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2010 EURO Currency Futures Contracts
(Aggregate Market Value of Contracts $13,795,312)		81	$	392,073
FUTURES CONTRACTS PURCHASED†
December 2010 EURO STOXX 50 Index Futures Contracts
(Aggregate Market Value of Contracts $6,371,845)		171	$	(72,651	)
December 2010 STOXX 50 Index Futures Contracts (Aggregate Market Value of Contracts $3,398,569)		101		(132,257	)
(Total Aggregate Market Value of Contracts $9,770,414)			$	(204,908	)

Country Diversification

The pie chart above reflects percentages of
the market value of Common Stocks.

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    171

  EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	15,805,755
Repurchase agreement, at value		6,043,478
Total investments		21,849,233
Segregated cash with broker		839,302
Cash		177,259
Receivables:
Fund shares sold		3,248,628
Dividends		38,784
Interest		33
Total assets		26,153,239
Liabilities:
Foreign currency, at value		161,413
Payable for:
Variation margin		51,307
Securities purchased		2,498,591
Fund shares redeemed		179,574
Management fees		14,305
Custodian fees		525
Transfer agent/maintenance fees		3,973
Distribution and service fees		4,419
Portfolio accounting fees		1,589
Licensing fees		1,485
Other		11,738
Total liabilities		2,928,919
Net assets	$	23,224,320
Net assets consist of:
Paid in capital		40,966,544
Accumulated net investment loss		(148,526	)
Accumulated net realized loss on sale of investments		(19,359,049	)
Net unrealized appreciation in value of investments		1,765,351
Net assets		23,224,320
A-Class:
Net assets	$	691,640
Capital shares outstanding		54,074
Net asset value per share		$12.79
Maximum offering price per share*		$13.43
C-Class:
Net assets	$	993,658
Capital shares outstanding		83,886
Net asset value per share		$11.85
H-Class:
Net assets	$	21,539,022
Capital shares outstanding		1,681,631
Net asset value per share		$12.81
Investments, at cost	$	14,227,199
Repurchase agreement, at cost		6,043,478
Total cost	$	20,270,677
Foreign currency sold short, proceeds		161,043

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $3,648)	$	195,774
Interest		5,558
Total investment income		201,332
Expenses:
Management fees		78,007
Transfer agent and administrative fees		21,669
Distribution and Service Fees:
A-Class		1,896
C-Class		5,531
H-Class		18,390
Portfolio accounting fees		8,667
Trustees’ fees**		397
Miscellaneous		14,952
Total expenses		149,509
Net investment income		51,823
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(1,504,293	)
Futures contracts		(2,952,988	)
Foreign currency		(154,927	)
Net realized loss		(4,612,208	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		1,174,086
Futures contracts		7,335
Foreign currency		23,234
Net unrealized appreciation		1,204,655
Net loss		(3,407,553	)
Net decrease in net assets resulting from operations	$	(3,355,730	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

172    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	51,823		$	22,164
Net realized gain (loss) during the period on investments		(4,612,208	)		4,336,353
Net unrealized appreciation during the period on investments		1,204,655			289,473
Net increase (decrease) in net assets resulting from operations		(3,355,730	)		4,647,990
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		14,652,014			326,905
C-Class		26,397,951			74,914,337
H-Class		136,340,116			404,179,856
Cost of shares redeemed
A-Class		(13,442,852	)		(389,582	)
C-Class		(27,368,974	)		(74,481,425	)
H-Class		(119,560,815	)		(405,444,660	)
Net increase (decrease) from capital share transactions		17,017,440			(894,569	)
Net increase in net assets		13,661,710			3,753,421
Net assets:
Beginning of period		9,562,610			5,809,189
End of period	$	23,224,320		$	9,562,610
Accumulated net investment loss at end of period	$	(148,526	)	$	(200,349	)
Capital share activity:
Shares sold
A-Class		1,227,839			24,458
C-Class		2,349,861			6,263,532
H-Class		11,108,114			28,884,036
Shares redeemed
A-Class		(1,206,447	)		(29,545	)
C-Class		(2,426,262	)		(6,199,574	)
H-Class		(9,918,710	)		(28,958,394	)
Total capital share activity		1,134,395			(15,487	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    173

  EUROPE 1.25x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.18			$8.36			$22.25			$24.13			$20.06			$17.14
Income (loss) from investment operations:
Net investment income (loss)b		(–	)c		.04			.18			.62			.54			.18
Net gain (loss) on securities (realized and unrealized)		(1.39	)		5.78			(14.07	)		(1.57	)		3.65			3.06
Total from investment operations		(1.39	)		5.82			(13.89	)		(.95	)		4.19			3.24
Less distributions:
Distributions from net investment income		—			—			—			(.23	)		(.12	)		—
Distributions from realized gains		—			—			—			(.70	)		—			(.32	)
Total distributions		—			—			—			(.93	)		(.12	)		(.32	)
Net asset value, end of period		$12.79			$14.18			$8.36			$22.25			$24.13			$20.06
Total Returnd		(9.80%	)		69.62%			(62.43%	)		(4.60%	)		20.90%			19.10%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$692			$463			$316			$1,750			$10,892			$1,378
Ratios to average net assets:
Net investment income (loss)		(0.08%	)		0.33%			1.05%			2.42%			2.33%			1.02%
Total expenses		1.68%			1.66%			1.68%			1.69%			1.54%			1.67%
Net expensese		1.68%			1.66%			1.68%			1.69%			1.54%			1.66%
Portfolio turnover rate		399%			1,353%			384%			320%			373%			454%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$13.17			$7.83			$21.00			$22.98			$19.25			$16.57
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.04	)		.07			.31			.39			.10
Net gain (loss) on securities (realized and unrealized)		(1.35	)		5.38			(13.24	)		(1.36	)		3.46			2.90
Total from investment operations		(1.32	)		5.34			(13.17	)		(1.05	)		3.85			3.00
Less distributions:
Distributions from net investment income		—			—			—			(.23	)		(.12	)		—
Distributions from realized gains		—			—			—			(.70	)		—			(.32	)
Total distributions		—			—			—			(.93	)		(.12	)		(.32	)
Net asset value, end of period		$11.85			$13.17			$7.83			$21.00			$22.98			$19.25
Total Returnd		(10.02%	)		68.20%			(62.71%	)		(5.28%	)		20.01%			18.30%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$994			$2,111			$754			$6,149			$9,539			$8,703
Ratios to average net assets:
Net investment income (loss)		0.46%			(0.36%	)		0.42%			1.27%			1.85%			0.59%
Total expenses		2.40%			2.42%			2.43%			2.40%			2.40%			2.42%
Net expensese		2.40%			2.42%			2.43%			2.40%			2.40%			2.41%
Portfolio turnover rate		399%			1,353%			384%			320%			373%			454%

174    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  EUROPE 1.25x STRATEGY FUND

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.

	Period Ended			Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,		March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010		2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.20			$8.36		$22.26			$24.14			$20.06			$17.13
Income (loss) from investment operations:
Net investment incomeb		.04			.03		.21			.57			.59			.22
Net gain (loss) on securities (realized and unrealized)		(1.43	)		5.81		(14.11	)		(1.52	)		3.61			3.03
Total from investment operations		(1.39	)		5.84		(13.90	)		(.95	)		4.20			3.25
Less distributions:
Distributions from net investment income		—			—		—			(.23	)		(.12	)		—
Distributions from realized gains		—			—		—			(.70	)		—			(.32	)
Total distributions		—			—		—			(.93	)		(.12	)		(.32	)
Net asset value, end of period		$12.81			$14.20		$8.36			$22.26			$22.14			$20.06
Total Returnd		(9.79%	)		69.86%		(62.44%	)		(4.60%	)		20.95%			19.17%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$21,539			$6,989		$4,739			$21,670			$57,887			$46,066
Ratios to average net assets:
Net investment income		0.68%			0.21%		1.22%			2.20%			2.63%			1.21%
Total expenses		1.68%			1.70%		1.71%			1.67%			1.66%			1.64%
Net expensese		1.68%			1.70%		1.71%			1.67%			1.66%			1.63%
Portfolio turnover rate		399%			1,353%		384%			320%			373%			454%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after voluntary expense waivers.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    175

FUND PROFILE (Unaudited)

September 30, 2010

JAPAN 2x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as futures contracts.

176    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  JAPAN 2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 51.6%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		$776,783	$	776,783
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		775,918		775,918
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		320,627		320,627
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		81,918		81,918
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		80,157		80,157
Total Repurchase Agreements (Cost $2,035,403)				2,035,403
Total Investments – 51.6% (Cost $2,035,403)			$	2,035,403
Cash & Other Assets, Less Liabilities – 48.4%				1,908,546
Total Net Assets – 100.0%			$	3,943,949

	CONTRACTS		UNREALIZED GAIN
FUTURES CONTRACTS PURCHASED†
December 2010 Nikkei-225 Stock Average Index Futures Contracts
(Aggregate Market Value of Contracts $7,894,925)		167	$	104,448
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2010 Japanese Yen Currency Futures Contracts (Aggregate Market Value of Contracts $7,942,050)		53	$	92,169

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    177

  JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	2,035,403
Total investments		2,035,403
Segregated cash with broker		714,000
Receivables:
Fund shares sold		1,252,241
Interest		11
Total assets		4,001,655
Liabilities:
Payable for:
Variation margin		49,819
Fund shares redeemed		3,351
Management fees		1,319
Custodian fees		58
Transfer agent/maintenance fees		439
Distribution and service fees		503
Portfolio accounting fees		176
Other		2,041
Total liabilities		57,706
Net assets	$	3,943,949
Net assets consist of:
Paid in capital		5,983,567
Accumulated net investment loss		(25,283	)
Accumulated net realized loss on sale of investments		(2,210,952	)
Net unrealized appreciation in value of investments		196,617
Net assets		3,943,949
A-Class:
Net assets	$	73,590
Capital shares outstanding		5,097
Net asset value per share		$14.44
Maximum offering price per share*		$15.16
C-Class:
Net assets	$	92,814
Capital shares outstanding		6,540
Net asset value per share		$14.19
H-Class:
Net assets	$	3,777,545
Capital shares outstanding		261,024
Net asset value per share		$14.47
Repurchase agreement, at cost	$	2,035,403
Total cost	$	2,035,403

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	2,224
Total investment income		2,224
Expenses:
Management fees		12,909
Transfer agent and administrative fees		4,303
Distribution and Service Fees:
A-Class		582
C-Class		1,571
H-Class		3,328
Portfolio accounting fees		1,721
Trustees’ fees**		207
Registration		1,697
Miscellaneous		1,189
Total expenses		27,507
Net investment loss		(25,283	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Futures contracts		(1,066,400	)
Net realized loss		(1,066,400	)
Net unrealized appreciation (depreciation) during the period on:
Futures contracts		33,125
Net unrealized appreciation		33,125
Net loss		(1,033,275	)
Net decrease in net assets resulting from operations	$	(1,058,558	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

178    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  JAPAN 2x STRATEGY FUND  

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(25,283	)	$	(95,137	)
Net realized gain (loss) during the period on investments		(1,066,400	)		3,918,319
Net unrealized appreciation (depreciation) during the period on investments		33,125			(790,035	)
Net increase (decrease) in net assets resulting from operations		(1,058,558	)		3,033,147
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		3,061,244			4,861,965
C-Class		15,104,626			40,920,332
H-Class		22,166,302			56,612,995
Cost of shares redeemed
A-Class		(5,056,063	)		(3,222,607	)
C-Class		(15,323,250	)		(41,845,825	)
H-Class		(23,030,126	)		(59,989,549	)
Net decrease from capital share transactions		(3,077,267	)		(2,662,689	)
Net increase (decrease) in net assets		(4,135,825	)		370,458
Net assets:
Beginning of period		8,079,774			7,709,316
End of period	$	3,943,949		$	8,079,774
Accumulated net investment loss at end of period	$	(25,283	)	$	—
Capital share activity:
Shares sold
A-Class		228,886			346,886
C-Class		1,045,330			2,896,454
H-Class		1,545,854			3,970,060
Shares redeemed
A-Class		(359,226	)		(244,676	)
C-Class		(1,065,385	)		(2,968,231	)
H-Class		(1,613,335	)		(4,366,545	)
Total capital share activity		(217,876	)		(366,052	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    179

 JAPAN 2x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$16.49			$9.01			$25.12			$25.00
Income (loss) from investment operations:
Net investment lossc		(.12	)		(.19	)		(.06	)		(—	)d
Net gain (loss) on securities (realized and unrealized)		(1.93	)		7.67			(16.24	)		.12
Total from investment operations		(2.05	)		7.48			(16.30	)		.12
Less distributions:
Distributions from net investment income		—			—			(.01	)		—
Total distributions		—			—			(.01	)		—
Payments by affiliates		—			—			.20	e		—
Net asset value, end of period		$14.44			$16.49			$9.01			$25.12
Total Returnf		(12.43%	)		83.02%			(64.10%	)e		0.48%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$74			$2,234			$299			$636
Ratios to average net assets:
Net investment loss		(1.40%	)		(1.42%	)		(0.42%	)		(0.12%	)g
Total expenses		1.53%			1.53%			1.53%			1.25%	g
Portfolio turnover rate		—			—			—			—
	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$16.23			$8.94			$25.10			$25.00
Income (loss) from investment operations:
Net investment lossc		(.15	)		(.31	)		(.17	)		(.02	)
Net gain (loss) on securities (realized and unrealized)		(1.89	)		7.60			(16.18	)		.12
Total from investment operations		(2.04	)		7.29			(16.35	)		.10
Less distributions:
Distributions from net investment income		—			—			(.01	)		—
Total distributions		—			—			(.01	)		—
Payments by affiliates		—			—			.20	e		—
Net asset value, end of period		$14.19			$16.23			$8.94			$25.10
Total Returnf		(12.57%	)		81.54%			(64.35%	)e		0.40%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$93			$432			$879			$240
Ratios to average net assets:
Net investment loss		(2.16%	)		(2.20%	)		(0.98%	)		(0.74%	)g
Total expenses		2.29%			2.28%			2.26%			2.21%	g
Portfolio turnover rate		—			—			—			—

180    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  JAPAN 2x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$16.48			$9.01			$25.12			$25.00
Income (loss) from investment operations:
Net investment lossc		(.10	)		(.21	)		(.08	)		—	d
Net gain (loss) on securities (realized and unrealized)		(1.91	)		7.68			(16.22	)		.12
Total from investment operations		(2.01	)		7.47			(16.30	)		.12
Less distributions:
Distributions from net investment income		—			—			(.01	)		—
Total distributions		—			—			(.01	)		—
Payments by affiliates		—			—			.20	e		—
Net asset value, end of period		$14.47			$16.48			$9.01			$25.12
Total Returnf		(12.20%	)		82.91%			(64.10%	)e		0.48%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,778			$5,414			$6,531			$5,243
Ratios to average net assets:
Net investment income (loss)		(1.40%	)		(1.44%	)		(0.55%	)		0.17%	g
Total expenses		1.53%			1.53%			1.52%			1.44%	g
Portfolio turnover rate		—			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: February 22, 2008.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Less than $0.01 per share.
e	Excluding the reimbursement, the Fund’s total return would have been - -64.90%, -65.15% and -64.90% for the A-Class, C-Class and H-Class, respectively.
f	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
g	Annualized

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    181

FUND PROFILE (Unaudited)

September 30, 2010

STRENGTHENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as currency index swap agreements and futures contracts.

182    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  STRENGTHENING DOLLAR 2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 96.4%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	10,631,454	$	10,631,454
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		10,619,618		10,619,618
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		4,388,272		4,388,272
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		3,044,793		3,044,793
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		1,097,068		1,097,068
Total Repurchase Agreements (Cost $29,781,205)				29,781,205
Total Investments – 96.4% (Cost $29,781,205)			$	29,781,205
Cash & Other Assets, Less Liabilities – 3.6%				1,110,135
Total Net Assets – 100.0%			$	30,891,340

			UNREALIZED
	CONTRACTS		LOSS
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2010 U.S. Dollar Index Futures Contracts (Aggregate Market Value of
Contracts $43,515,225)		551	$	(1,788,415	)
		UNITS
CURRENCY INDEX SWAP AGREEMENT††
Goldman Sachs International November 2010 U.S. Dollar Index Swap, Terminating 11/26/103 (Notional Market Value $18,306,261)		231,821	$	(471,039	)

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as currency index swap collateral at September 30, 2010.
3	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    183

2

  STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	29,781,205
Total investments		29,781,205
Segregated cash with broker		661,200
Receivables:
Variation margin		38,570
Fund shares sold		1,381,491
Interest		162
Total assets		31,862,628
Liabilities:
Unrealized depreciation on swap agreements		471,039
Payable for:
Swap settlement		345,211
Fund shares redeemed		78,069
Management fees		26,476
Custodian fees		971
Transfer agent/maintenance fees		7,354
Distribution and service fees		11,130
Portfolio accounting fees		2,942
Licensing fees		7,615
Other		20,481
Total liabilities		971,288
Net assets	$	30,891,340
Net assets consist of:
Paid in capital		50,153,201
Accumulated net investment loss		(426,667	)
Accumulated net realized loss on sale of investments		(16,575,740	)
Net unrealized depreciation in value of investments		(2,259,454	)
Net assets		30,891,340
A-Class:
Net assets	$	6,445,732
Capital shares outstanding		431,752
Net asset value per share		$14.93
Maximum offering price per share*		$15.67
C-Class:
Net assets	$	5,629,636
Capital shares outstanding		394,218
Net asset value per share		$14.28
H-Class:
Net assets	$	18,815,972
Capital shares outstanding		1,266,499
Net asset value per share		$14.86
Repurchase agreement, at cost	$	29,781,205
Total cost	$	29,781,205

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment income:
Interest	$	39,705
Total investment income		39,705
Expenses:
Management fees		230,132
Transfer agent and administrative fees		63,925
Distribution and Service Fees:
A-Class		12,761
C-Class		39,259
H-Class		41,350
Portfolio accounting fees		25,570
Trustees’ fees**		2,544
Miscellaneous		50,831
Total expenses		466,372
Net investment loss		(426,667	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Currency index swaps		(383,803	)
Futures contracts		729,067
Net realized gain		345,264
Net unrealized appreciation (depreciation) during the period on:
Currency index swaps		(549,036	)
Futures contracts		(2,521,875	)
Net unrealized depreciation		(3,070,911	)
Net loss		(2,725,647	)
Net decrease in net assets resulting from operations	$	(3,152,314	)

*	Net asset value adjusted for the maximum sales charge of
4.75% of offering price, calculated NAV/(1-4.75%).

**	Relates to Trustee not deemed “interested persons” within the
meaning of Section 2(a)(19) of the 1940 Act.

184    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

  STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(426,667	)	$	(780,540	)
Net realized gain (loss) during the period on investments		345,264			(4,420,826	)
Net unrealized appreciation (depreciation) during the period on investments		(3,070,911	)		718,422
Net decrease in net assets resulting from operations		(3,152,314	)		(4,482,944	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		13,091,838			26,981,177
C-Class		59,607,560			166,010,494
H-Class		160,572,870			430,502,636
Cost of shares redeemed
A-Class		(23,102,946	)		(17,004,512	)
C-Class		(63,884,854	)		(160,038,197	)
H-Class		(200,612,460	)		(388,785,531	)
Net increase (decrease) from capital share transactions		(54,327,992	)		57,666,067
Net increase (decrease) in net assets		(57,480,306	)		53,183,123
Net assets:
Beginning of period		88,371,646			35,188,523
End of period	$	30,891,340		$	88,371,646
Accumulated net investment loss at end of period	$	(426,667	)	$	—
Capital share activity:
Shares sold
A-Class		743,965			1,701,391
C-Class		3,635,381			10,697,848
H-Class		9,377,779			26,303,063
Shares redeemed
A-Class		(1,339,673	)		(1,046,283	)
C-Class		(3,914,423	)		(10,325,916	)
H-Class		(11,848,773	)		(23,698,004	)
Total capital share activity		(3,345,744	)		3,632,099

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    185

1

 STRENGTHENING DOLLAR 2x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006		b
Per Share Data
Net asset value, beginning of period		$16.38			$19.64			$19.85			$25.35			$27.74			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.25	)		.02			.39			.91			.50
Net gain (loss) on securities (realized and unrealized)		(1.32	)		(3.01	)		6.50			(5.89	)		(3.30	)		2.37
Total from investment operations		(1.45	)		(3.26	)		6.52			(5.50	)		(2.39	)		2.87
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.13	)
Distributions from realized gains		—			—			(6.73	)		—			—			—
Total distributions		—			—			(6.73	)		—			—			(.13	)
Net asset value, end of period		$14.93			$16.38			$19.64			$19.85			$25.35			$27.74
Total Returnd		(8.85%	)		(16.60%	)		30.59%			(21.70%	)		(8.62%	)		11.47%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,446			$16,833			$7,314			$2,795			$108			$91
Ratios to average net assets:
Net investment income (loss)		(1.55%	)		(1.57%	)		0.07%			1.73%			3.53%			2.17%	e
Total expenses		1.71%			1.67%			1.69%			1.66%			1.66%			1.68%	e
Portfolio turnover rate		—			—			—			—			—			—

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006		b
Per Share Data
Net asset value, beginning of period		$15.74			$19.01			$19.42			$24.99			$27.56			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.19	)		(.36	)		(.14	)		.42			.70			.36
Net gain (loss) on securities (realized and unrealized)		(1.27	)		(2.91	)		6.46			(5.99	)		(3.27	)		2.33
Total from investment operations		(1.46	)		(3.27	)		6.32			(5.57	)		(2.57	)		2.69
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.13	)
Distributions from realized gains		—			—			(6.73	)		—			—			—
Total distributions		—			—			(6.73	)		—			—			(.13	)
Net asset value, end of period		$14.28			$15.74			$19.01			$19.42			$24.99			$27.56
Total Returnd		(9.28%	)		(17.20%	)		30.36%			(22.29%	)		(9.33%	)		10.75%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,630			$10,594			$5,728			$6,131			$2,630			$769
Ratios to average net assets:
Net investment income (loss)		(2.30%	)		(2.31%	)		(0.66%	)		1.84%			2.75%			1.51%	e
Total expenses		2.46%			2.42%			2.44%			2.40%			2.40%			2.41%	e
Portfolio turnover rate		—			—			—			—			—			—

186    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

2

  STRENGTHENING DOLLAR 2x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006		b
Per Share Data
Net asset value, beginning of period		$16.31			$19.56			$19.83			$25.33			$27.71			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.14	)		(.25	)		.02			.57			.90			.51
Net gain (loss) on securities (realized and unrealized)		(1.31	)		(3.00	)		6.44			(6.07	)		(3.28	)		2.33
Total from investment operations		(1.45	)		(3.25	)		6.46			(5.50	)		(2.38	)		2.84
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.13	)
Distributions from realized gains		—			—			(6.73	)		—			—			—
Total distributions		—			—			(6.73	)		—			—			(.13	)
Net asset value, end of period		$14.86			$16.31			$19.56			$19.83			$25.33			$27.71
Total Returnd		(8.89%	)		(16.62%	)		30.25%			(21.71%	)		(8.59%	)		11.35%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$18,816			$60,944			$22,147			$29,011			$11,946			$7,270
Ratios to average net assets:
Net investment income (loss)		(1.56%	)		(1.57%	)		0.08%			2.44%			3.47%			2.19%	e
Total expenses		1.71%			1.67%			1.69%			1.66%			1.66%			1.66%	e
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations May 25, 2005.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Annualized

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    187

3

FUND PROFILE (Unaudited)

September 30, 2010

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as currency index swap agreements and futures contracts.

188    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  WEAKENING DOLLAR 2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 94.9%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	17,251,083	$	17,251,083
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		17,231,878		17,231,878
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		7,120,611		7,120,611
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		3,071,432		3,071,432
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		1,780,153		1,780,153
Total Repurchase Agreements (Cost $46,455,157)				46,455,157
Total Investments – 94.9% (Cost $46,455,157)			$	46,455,157
Cash & Other Assets, Less Liabilities – 5.1%				2,479,665
Total Net Assets – 100.0%			$	48,934,822

			UNREALIZED
	CONTRACTS		GAIN
CURRENCY FUTURES CONTRACTS SOLD SHORT†
December 2010 U.S. Dollar Index Futures Contracts (Aggregate Market Value of Contracts $68,629,275)		869	$	2,524,290
		UNITS
CURRENCY INDEX SWAP AGREEMENT SOLD SHORT††
Goldman Sachs International November 2010 U.S. Dollar Index Swap, Terminating 11/26/103 (Notional Market Value $30,072,933)		380,829	$	800,754

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as currency index swap collateral at September 30, 2010.
3	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    189

 WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	46,455,157
Total investments		46,455,157
Segregated cash with broker		1,042,800
Unrealized appreciation on swap agreements		800,754
Receivable for swap settlement		6,099
Receivables:
Fund shares sold		1,591,370
Interest		254
Total assets		49,896,434
Liabilities:
Payable for:
Variation margin		60,830
Fund shares redeemed		809,399
Management fees		27,593
Custodian fees		1,011
Transfer agent/maintenance fees		7,665
Distribution and service fees		10,639
Portfolio accounting fees		3,066
Licensing fees		5,411
Other		35,998
Total liabilities		961,612
Net assets	$	48,934,822
Net assets consist of:
Paid in capital		62,031,817
Accumulated net investment loss		(295,965	)
Accumulated net realized loss on sale of investments		(16,126,074	)
Net unrealized appreciation in value of investments		3,325,044
Net assets		48,934,822
A-Class:
Net assets	$	5,671,278
Capital shares outstanding		299,031
Net asset value per share		$18.97
Maximum offering price per share*		$19.92
C-CLASS:
Net assets	$	6,113,572
Capital shares outstanding		339,652
Net asset value per share		$18.00
H-Class:
Net assets	$	37,149,972
Capital shares outstanding		1,960,826
Net asset value per share		$18.95
Repurchase agreement, at cost	$	46,455,157
Total cost	$	46,455,157

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	30,976
Total investment income		30,976
Expenses:
Management fees		163,275
Transfer agent and administrative fees		45,354
Distribution and Service Fees:
A-Class		6,755
C-Class		23,560
H-Class		32,709
Portfolio accounting fees		18,142
Trustees’ fees**		1,464
Registration		25,968
Miscellaneous		9,714
Total expenses		326,941
Net investment loss		(295,965	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Currency index swaps		(506,778	)
Futures contracts		(1,949,695	)
Net realized loss		(2,456,473	)
Net unrealized appreciation (depreciation) during the period on:
Currency index swaps		832,611
Futures contracts		3,004,428
Net unrealized appreciation		3,837,039
Net realized and unrealized gain		1,380,566
Net increase in net assets resulting from operations	$	1,084,601

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

190    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(295,965	)	$	(1,655,237	)
Net realized gain (loss) during the period on investments		(2,456,473	)		23,650,520
Net unrealized appreciation (depreciation) during the period on investments		3,837,039			(5,860,381	)
Net increase in net assets resulting from operations		1,084,601			16,134,902
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		1,808,401			29,337,819
C-Class		4,506,098			71,736,946
H-Class		69,257,666			292,106,948
Cost of shares redeemed
A-Class		(3,030,187	)		(43,837,092	)
C-Class		(3,867,624	)		(76,123,193	)
H-Class		(62,926,259	)		(333,831,802	)
Net increase (decrease) from capital share transactions		5,748,095			(60,610,374	)
Net increase (decrease) in net assets		6,832,696			(44,475,472	)
Net assets:
Beginning of period		42,102,126			86,577,598
End of period	$	48,934,822		$	42,102,126
Accumulated net investment loss at end of period	$	(295,965	)	$	—
Capital share activity:
Shares sold
A-Class		106,581			1,547,781
C-Class		266,658			3,852,060
H-Class		3,984,660			15,923,652
Shares redeemed
A-Class		(183,207	)		(2,249,051	)
C-Class		(237,405	)		(4,093,956	)
H-Class		(3,696,407	)		(17,931,721	)
Total capital share activity		240,880			(2,951,235	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    191

  WEAKENING DOLLAR 2x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended		Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,		March 31,
A-Class	2010		a	2010			2009			2008			2007		2006		b
Per Share Data
Net asset value, beginning of period		$17.98			$16.38			$29.27			$26.18			$22.70		$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.30	)		(.07	)		.70			.91		.51
Net gain (loss) on securities (realized and unrealized)		1.12			1.90			(8.77	)		7.17			2.57		(2.67	)
Total from investment operations		.99			1.60			(8.84	)		7.87			3.48		(2.16	)
Less distributions:
Distributions from net investment income		—			—			(1.28	)		(4.78	)		—		(.14	)
Distributions from realized gains		—			—			(2.77	)		(—	)e		—		—
Total distributions		—			—			(4.05	)		(4.78	)		—		(.14	)
Net asset value, end of period		$18.97			$17.98			$16.38			$29.27			$26.18		$22.70
Total Returnd		5.51%			9.77%			(29.87%	)		32.49%			15.33%		(8.65%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,671			$6,753			$17,642			$22,148			$21,502		$2,989
Ratios to average net assets:
Net investment income (loss)		(1.54%	)		(1.57%	)		(0.30%	)		2.51%			3.63%		2.66%	f
Total expenses		1.71%			1.68%			1.69%			1.67%			1.65%		1.70%	f
Portfolio turnover rate		—			—			—			—			—		—

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended		Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,		March 31,
C-Class	2010		a	2010			2009			2008			2007		2006		b
Per Share Data
Net asset value, beginning of period		$17.12			$15.73			$28.53			$25.81			$22.55		$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.19	)		(.43	)		(.21	)		.43			.71		.34
Net gain (loss) on securities (realized and unrealized)		1.07			1.82			(8.54	)		7.07			2.55		(2.65	)
Total from investment operations		.88			1.39			(8.75	)		7.50			3.26		(2.31	)
Less distributions:
Distributions from net investment income		—			—			(1.28	)		(4.78	)		—		(.14	)
Distributions from realized gains		—			—			(2.77	)		(—	)e		—		—
Total distributions		—			—			(4.05	)		(4.78	)		—		(.14	)
Net asset value, end of period		$18.00			$17.12			$15.73			$28.53			$25.81		$22.55
Total Returnd		5.14%			8.84%			(30.37%	)		31.47%			14.46%		(9.25%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,114			$5,314			$8,687			$21,604			$14,160		$3,916
Ratios to average net assets:
Net investment income (loss)		(2.28%	)		(2.32%	)		(0.93%	)		1.57%			2.87%		1.79%	f
Total expenses		2.46%			2.43%			2.45%			2.41%			2.40%		2.46%	f
Portfolio turnover rate		—			—			—			—			—		—

192    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  WEAKENING DOLLAR 2x STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended		Period Ended
	September 30,			March 31,			March 31,			March 31,			March 31,		March 31,
H-Class	2010		a	2010			2009			2008			2007		2006		b
Per Share Data
Net asset value, beginning of period		$17.96			$16.37			$29.25			$26.18			$22.69		$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.30	)		(.03	)		.68			.90		.49
Net gain (loss) on securities (realized and unrealized)		1.12			1.89			(8.80	)		7.17			2.59		(2.66	)
Total from investment operations		.99			1.59			(8.83	)		7.85			3.49		(2.17	)
Less distributions:
Distributions from net investment income		—			—			(1.28	)		(4.78	)		—		(.14	)
Distributions from realized gains		—			—			(2.77	)		(—	)e		—		—
Total distributions		—			—			(4.05	)		(4.78	)		—		(.14	)
Net asset value, end of period		$18.95			$17.96			$16.37			$29.25			$26.18		$22.69
Total Returnd		5.51%			9.71%			(29.86%	)		32.41%			15.38%		(8.69%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$37,150			$30,036			$60,249			$103,867			$110,480		$51,710
Ratios to average net assets:
Net investment income (loss)		(1.53%	)		(1.57%	)		(0.13%	)		2.45%			3.60%		2.53%	f
Total expenses		1.70%			1.68%			1.70%			1.67%			1.65%		1.68%	f
Portfolio turnover rate		—			—			—			—			—		—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations May 25, 2005.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Less than $.01 per share.
f	Annualized

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    193

FUND PROFILE (Unaudited)

September 30, 2010

REAL ESTATE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the real estate industry including real estate investment trusts (“REIT”) (collectively, “Real Estate Companies”).

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Simon Property Group, Inc.	3.4	%
Public Storage	2.7	%
Vornado Realty Trust	2.6	%
Equity Residential	2.4	%
Boston Properties, Inc.	2.2	%
HCP, Inc.	2.1	%
Annaly Capital Management, Inc.	2.0	%
Host Hotels & Resorts, Inc.	1.9	%
AvalonBay Communities, Inc.	1.8	%
Ventas, Inc.	1.8	%
Top Ten Total	22.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

194    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  REAL ESTATE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.4%
REAL ESTATE INVESTMENT TRUSTS (REITS) - 91.3% SPECIALIZED REIT’S - 25.7%
Public Storage		16,166	$	1,568,749
HCP, Inc.		34,163		1,229,185
Host Hotels & Resorts, Inc.		76,470		1,107,286
Ventas, Inc.		20,780		1,071,625
Health Care REIT, Inc.		19,519		924,029
Plum Creek Timber Company, Inc.		24,297		857,684
Nationwide Health Properties, Inc.		21,011		812,495
Rayonier, Inc.		15,266		765,132
Senior Housing Properties Trust		28,395		667,282
Hospitality Properties Trust		27,038		603,759
Omega Healthcare Investors, Inc.		24,652		553,437
Entertainment Properties Trust		12,395		535,216
LaSalle Hotel Properties		20,068		469,391
DiamondRock Hospitality Co.*		48,399		459,307
Extra Space Storage, Inc.		28,375		455,135
Healthcare Realty Trust, Inc.		19,309		451,637
Medical Properties Trust, Inc.		39,601		401,554
Potlatch Corp.		11,687		397,358
Sovran Self Storage, Inc.		9,218		349,362
U-Store-It Trust		39,740		331,829
Hersha Hospitality Trust		61,639		319,290
Sunstone Hotel Investors, Inc.*		34,091		309,205
National Health Investors, Inc.		5,229		230,390
Total Specialized Reit’s				14,870,337
RETAIL REIT’S - 19.3%
Simon Property Group, Inc.		21,308		1,976,104
Kimco Realty Corp.		61,073		961,900
Macerich Co.		20,558		882,966
Federal Realty Investment Trust		10,515		858,655
General Growth Properties, Inc.		54,070		843,492
Realty Income Corp.		20,930		705,760
Regency Centers Corp.		17,187		678,371
Developers Diversified Realty Corp.		54,133		607,372
Weingarten Realty Investors		27,705		604,523
Taubman Centers, Inc.		13,211		589,343
National Retail Properties, Inc.		22,447		563,644
Tanger Factory Outlet Centers		11,514		542,770
CBL & Associates Properties, Inc.		36,640		478,518
Equity One, Inc.		19,496		329,092
Acadia Realty Trust		15,512		294,728
Pennsylvania Real Estate Investment Trust		22,809		270,515
Total Retail Reit’s				11,187,753
OFFICE REIT’S - 15.1%
Boston Properties, Inc.		15,496		1,288,027
Digital Realty Trust, Inc.		13,751		848,437
SL Green Realty Corp.		12,886		816,070
Alexandria Real Estate Equities, Inc.		9,004		630,280

			MARKET
	SHARES		VALUE
Mack-Cali Realty Corp.		18,129	$	593,000
Duke Realty Corp.		50,591		586,350
Douglas Emmett, Inc.		32,579		570,458
Highwoods Properties, Inc.		17,529		569,167
Corporate Office Properties Trust		14,386		536,742
BioMed Realty Trust, Inc.		29,489		528,443
Kilroy Realty Corp.		14,483		479,967
Brandywine Realty Trust		38,864		476,084
CommonWealth REIT		17,987		460,467
Lexington Realty Trust		54,397		389,482
Total Office Reit’s				8,772,974
RESIDENTIAL REIT’S - 13.9%
Equity Residential		28,827		1,371,300
AvalonBay Communities, Inc.		10,350		1,075,676
UDR, Inc.		32,693		690,476
Essex Property Trust, Inc.		6,145		672,509
Camden Property Trust		13,798		661,890
BRE Properties, Inc.		14,298		593,367
Apartment Investment & Management Co. — Class A		26,677		570,354
Home Properties, Inc.		9,936		525,614
Mid-America Apartment Communities, Inc.		8,774		511,349
Equity Lifestyle Properties, Inc.		8,920		485,962
American Campus Communities, Inc.		15,745		479,278
Post Properties, Inc.		15,903		444,012
Total Residential Reit’s				8,081,787
DIVERSIFIED REIT’S - 6.5%
Vornado Realty Trust		17,650		1,509,604
Liberty Property Trust		22,177		707,446
Washington Real Estate Investment Trust		16,840		534,333
Colonial Properties Trust		24,779		401,172
Cousins Properties, Inc.		44,876		320,415
PS Business Parks, Inc.		4,852		274,478
Total Diversified Reit’s				3,747,448
MORTGAGE REIT’S - 6.0%
Annaly Capital Management, Inc.		66,448		1,169,485
MFA Financial, Inc.		71,602		546,323
Redwood Trust, Inc.		26,180		378,563
Hatteras Financial Corp.		12,971		369,284
Anworth Mortgage Asset Corp.		48,745		347,552
American Capital Agency Corp.		12,551		333,480
Capstead Mortgage Corp.		29,260		318,056
Total Mortgage Reit’s				3,462,743
INDUSTRIAL REIT’S - 4.8%
ProLogis		75,939		894,561
AMB Property Corp.		29,327		776,286
DuPont Fabros Technology, Inc.		17,815		448,047
DCT Industrial Trust, Inc.		75,465		361,477
EastGroup Properties, Inc.		8,354		312,273
Total Industrial Reit’s				2,792,644

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    195

2

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  REAL ESTATE FUND

			MARKET
	SHARES		VALUE
Total Real Estate Investment
Trusts (REITs)			$	52,915,686
REAL ESTATE MANAGEMENT & DEVELOPMENT - 8.1%
REAL ESTATE SERVICES - 3.9%
CB Richard Ellis Group, Inc. — Class A*		52,803		965,239
Jones Lang LaSalle, Inc.		8,869		765,129
E-House China Holdings Ltd. ADR		28,073		529,737
Total Real Estate Services				2,260,105
DIVERSIFIED REAL ESTATE ACTIVITIES – 2.4%
Brookfield Asset Management, Inc. — Class A		28,228		800,829
St. Joe Co.*		22,438		558,033
Total Diversified Real Estate Activities				1,358,862
REAL ESTATE OPERATING COMPANIES – 1.8%
Brookfield Properties Corp.		34,204		530,846
Forest City Enterprises, Inc. — Class A*		40,882		524,516
Total Real Estate Operating Companies				1,055,362
Total Real Estate Management & Development				4,674,329
Total Common Stocks (Cost $44,924,619)				57,590,015
Total Investments – 99.4% (Cost $44,924,619)			$	57,590,015
Cash & Other Assets, Less Liabilities – 0.6%				345,627
Total Net Assets – 100.0%			$	57,935,642

*	Non-Income Producing Security
†	Value determined based on Level 1 inputs — See Note 8. ADR — American Depositary Receipt
	REIT — Real Estate Investment Trust

196    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

3

  REAL ESTATE FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	57,590,015
Total investments		57,590,015
Receivables:
Fund shares sold		1,842,221
Dividends		224,141
Total assets		59,656,377
Liabilities:
Overdraft due to custodian bank		494,402
Payable for:
Securities purchased		1,078,949
Fund shares redeemed		52,252
Management fees		40,097
Custodian fees		1,557
Transfer agent/maintenance fees		11,793
Distribution and service fees		13,109
Portfolio accounting fees		4,717
Other		23,859
Total liabilities		1,720,735
Net assets	$	57,935,642
Net assets consist of:
Paid in capital		65,598,102
Undistributed net investment income		805,935
Accumulated net realized loss on sale of investments		(21,133,791	)
Net unrealized appreciation in value of investments		12,665,396
Net assets		57,935,642
A-Class:
Net assets	$	7,659,090
Capital shares outstanding		295,882
Net asset value per share		$25.89
Maximum offering price per share*		$27.18
C-Class:
Net assets	$	1,762,814
Capital shares outstanding		71,771
Net asset value per share		$24.56
H-Class:
Net assets	$	48,513,738
Capital shares outstanding		1,876,070
Net asset value per share		$25.86
Investments, at cost	$	44,924,619
Total cost	$	44,924,619

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $1,528)	$	810,666
Interest		241
Total investment income		810,907
Expenses:
Management fees		210,944
Transfer agent and administrative fees		62,042
Distribution and Service Fees:
A-Class		7,341
C-Class		9,542
H-Class		52,316
Portfolio accounting fees		24,816
Trustees’ fees**		1,757
Miscellaneous		41,997
Total expenses		410,755
Net investment income		400,152
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(3,121,294	)
Net realized loss		(3,121,294	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		3,358,888
Net unrealized appreciation		3,358,888
Net realized and unrealized gain		237,594
Net increase in net assets resulting from operations	$	637,746

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    197

4

  REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	400,152		$	553,798
Net realized loss during the period on investments		(3,121,294	)		(511,338	)
Net unrealized appreciation during the period on investments		3,358,888			8,932,170
Net increase in net assets resulting from operations		637,746			8,974,630
Distributions to shareholders from:
Net investment income
A-Class		—			(41,671	)
C-Class		—			(21,574	)
H-Class		—			(266,325	)
Total distributions to shareholders		—			(329,570	)
Capital share transactions:
Proceeds from sale of shares
A-Class		11,926,031			17,825,648
C-Class		33,354,979			65,977,573
H-Class		129,102,368			353,762,266
Distributions reinvested
A-Class		—			41,288
C-Class		—			21,361
H-Class		—			255,420
Cost of shares redeemed
A-Class		(8,894,244	)		(16,882,349	)
C-Class		(34,179,229	)		(65,957,944	)
H-Class		(115,384,618	)		(326,701,549	)
Net increase from capital share transactions		15,925,287			28,341,714
Net increase in net assets		16,563,033			36,986,774
Net assets:
Beginning of period		41,372,609			4,385,835
End of period	$	57,935,642		$	41,372,609
Undistributed net investment income at end of period	$	805,935		$	405,783
Capital share activity:
Shares sold
A-Class		488,247			883,574
C-Class		1,398,609			3,517,526
H-Class		5,180,466			17,097,247
Shares reinvested
A-Class		—			1,881
C-Class		—			1,018
H-Class		—			11,647
Shares redeemed
A-Class		(369,901	)		(829,057	)
C-Class		(1,419,597	)		(3,512,985	)
H-Class		(4,746,698	)		(15,803,603	)
Total capital share activity		531,126			1,367,248

198    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  REAL ESTATE FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$24.24			$12.83			$32.42			$42.16			$36.46			$27.84
Income (loss) from investment operations:
Net investment incomeb		.19			.44			.74			.54			.46			.64
Net gain (loss) on securities (realized and unrealized)		1.46			11.11			(19.43	)		(10.05	)		5.53			8.18
Total from investment operations		1.65			11.55			(18.69	)		(9.51	)		5.99			8.82
Less distributions:
Distributions from net investment income		—			(.14	)		(.90	)		(.23	)		(.17	)		—
Distributions from realized gains		—			—			—			—			(.12	)		(.20	)
Total distributions		—			(.14	)		(.90	)		(.23	)		(.29	)		(.20	)
Net asset value, end of period		$25.89			$24.24			$12.83			$32.42			$42.16			$36.46
Total Returnc		6.81%			90.16%			(58.00%	)		(22.59%	)		16.43%			31.75%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,659			$4,303			$1,554			$2,866			$9,061			$375
Ratios to average net assets:
Net investment income		1.56%			2.15%			2.81%			1.45%			1.10%			2.02%
Total expenses		1.63%			1.65%			1.68%			1.64%			1.61%			1.57%
Portfolio turnover rate		205%			1,520%			780%			832%			762%			1,304%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$23.11			$12.33			$31.44			$41.22			$35.93			$27.64
Income (loss) from investment operations:
Net investment incomeb		.08			.40			.66			.29			.19			.43
Net gain (loss) on securities (realized and unrealized)		1.37			10.52			(18.87	)		(9.84	)		5.39			8.06
Total from investment operations		1.45			10.92			(18.21	)		(9.55	)		5.58			8.49
Less distributions:
Distributions from net investment income		—			(.14	)		(.90	)		(.23	)		(.17	)		—
Distributions from realized gains		—			—			—			—			(.12	)		(.20	)
Total distributions		—			(.14	)		(.90	)		(.23	)		(.29	)		(.20	)
Net asset value, end of period		$24.56			$23.11			$12.33			$31.44			$41.22			$35.93
Total Returnc		6.27%			88.70%			(58.28%	)		(23.21%	)		15.53%			30.79%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,763			$2,143			$1,075			$2,290			$5,469			$3,548
Ratios to average net assets:
Net investment income		0.66%			2.06%			2.62%			0.78%			0.48%			1.35%
Total expenses		2.38%			2.41%			2.42%			2.39%			2.36%			2.36%
Portfolio turnover rate		205%			1,520%			780%			832%			762%			1,304%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    199

  REAL ESTATE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$24.22			$12.82			$32.40			$42.14			$36.47			$27.85
Income (loss) from investment operations:
Net investment incomeb		.21			.50			.61			.53			.54			.57
Net gain (loss) on securities (realized and unrealized)		1.43			11.04			(19.29	)		(10.04	)		5.42			8.25
Total from investment operations		1.64			11.54			(18.68	)		(9.51	)		5.96			8.82
Less distributions:
Distributions from net investment income		—			(.14	)		(.90	)		(.23	)		(.17	)		—
Distributions from realized gains		—			—			—			—			(.12	)		(.20	)
Total distributions		—			(.14	)		(.90	)		(.23	)		(.29	)		(.20	)
Net asset value, end of period		$25.86			$24.22			$12.82			$32.40			$42.14			$36.47
Total Returnc		6.77%			90.15%			(58.01%	)		(22.60%	)		16.34%			31.74%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$48,514			$34,926			$1,757			$14,140			$25,784			$49,591
Ratios to average net assets:
Net investment income		1.66%			2.41%			2.14%			1.43%			1.35%			1.78%
Total expenses		1.63%			1.68%			1.64%			1.64%			1.62%			1.59%
Portfolio turnover rate		205%			1,520%			780%			832%			762%			1,304%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

200    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: To provide investment results that correspond to a benchmark for U.S. Government securities on a daily basis. The Fund’s current benchmark is 120% of the price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

“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 derivative investments such as futures contracts.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    201

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
U.S. TREASURY OBLIGATIONS† - 93.7%
U.S. Treasury Bond 3.88% due 08/15/40	$	142,304,000	$	147,106,760
Total U.S. Treasury Obligations (Cost $144,706,778)				147,106,760
REPURCHASE AGREEMENTS††,1 - 2.0%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		1,230,131		1,230,131
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		1,228,761		1,228,761
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		507,753		507,753
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		129,726		129,726
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		126,938		126,938
Total Repurchase Agreements (Cost $3,223,309)				3,223,309
Total Investments – 95.7% (Cost $147,930,087)			$	150,330,069
Cash & Other Assets, Less Liabilities – 4.3%				6,721,935
Total Net Assets – 100.0%			$	157,052,004

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS PURCHASED†
December 2010 Ultra Long-Term
U.S. Treasury Bond Futures Contracts
(Aggregate Market Value of Contracts $45,896,094)		325	$	596,491

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.

202    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	147,106,760
Repurchase agreement, at value		3,223,309
Total investments		150,330,069
Segregated cash with broker		787,500
Cash		1,231
Receivables:
Variation margin		27,144
Fund shares sold		37,208,508
Interest		558,290
Total assets		188,912,742
Liabilities:
Payable for:
Securities purchased		30,495,625
Fund shares redeemed		1,134,403
Management fees		54,076
Custodian fees		3,569
Transfer agent/maintenance fees		21,631
Distribution and service fees		26,341
Portfolio accounting fees		10,815
Interest		27,429
Other		86,849
Total liabilities		31,860,738
Net assets	$	157,052,004
Net assets consist of:
Paid in capital		174,502,969
Undistributed net investment income		157,920
Accumulated net realized loss on sale of investments		(20,605,358	)
Net unrealized appreciation in value of investments		2,996,473
Net assets		157,052,004
Investor Class
Net assets	$	106,703,861
Capital shares outstanding		7,891,375
Net asset value per share		$13.52
Advisor Class
Net assets	$	30,695,473
Capital shares outstanding		2,280,777
Net asset value per share		$13.46
A-Class:
Net assets	$	3,529,504
Capital shares outstanding		260,758
Net asset value per share		$13.54
Maximum offering price per share*		$14.22
C-Class:
Net assets	$	16,123,166
Capital shares outstanding		1,193,641
Net asset value per share		$13.51
Investments, at cost	$	144,706,778
Repurchase agreement, at cost		3,223,309
Total cost	$	147,930,087

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	2,899,243
Total investment income		2,899,243
Expenses:
Management fees		365,627
Transfer agent and administrative fees		146,253
Distribution and Service Fees:
Advisor Class		93,711
A-Class		5,375
C-Class		76,150
Portfolio accounting fees		72,424
Trustees’ fees**		6,556
Registration		52,749
Miscellaneous		67,529
Total expenses		886,374
Net investment income		2,012,869
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		12,162,909
Futures contracts		5,291,344
Net realized gain		17,454,253
Net unrealized appreciation (depreciation) during the period on:
Investment securities		5,204,301
Futures contracts		306,014
Net unrealized appreciation		5,510,315
Net realized and unrealized gain		22,964,568
Net increase in net assets resulting from operations	$	24,977,437

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    203

  GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	2,012,869		$	5,373,225
Net realized gain (loss) during the period on investments		17,454,253			(33,938,618	)
Net unrealized appreciation (depreciation) during the period on investments		5,510,315			(4,919,639	)
Net increase (decrease) in net assets resulting from operations		24,977,437			(33,485,032	)
Distributions to shareholders from:
Net investment income
Investor Class		(1,375,134	)		(4,391,419	)
Advisor Class		(455,508	)		(539,964	)
A-Class		(58,428	)		(190,623	)
C-Class		(147,179	)		(253,542	)
Total distributions to shareholders		(2,036,249	)		(5,375,548	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		565,863,881			2,310,502,198
Advisor Class		658,960,056			1,023,385,056
A-Class		12,910,383			17,597,007
C-Class		42,078,677			143,663,196
Distributions reinvested
Investor Class		1,300,480			4,265,561
Advisor Class		453,643			534,630
A-Class		49,444			163,087
C-Class		138,768			237,852
Cost of shares redeemed
Investor Class		(755,236,506	)		(2,043,495,107	)
Advisor Class		(664,421,243	)		(1,000,137,157	)
A-Class		(15,936,636	)		(21,524,585	)
C-Class		(41,700,052	)		(134,407,163	)
Net increase (decrease) from capital share transactions		(195,539,105	)		300,784,575
Net increase (decrease) in net assets		(172,597,917	)		261,923,995
Net assets:
Beginning of period		329,649,921			67,725,926
End of period	$	157,052,004		$	329,649,921
Undistributed net investment income at end of period	$	157,920		$	181,300
Capital share activity:
Shares sold
Investor Class		45,488,614			200,443,233
Advisor Class		53,448,484			90,211,191
A-Class		1,026,621			1,521,794
C-Class		3,417,454			12,375,186
Shares reinvested
Investor Class		105,756			368,377
Advisor Class		36,448			47,172
A-Class		3,939			13,965
C-Class		10,999			20,611
Shares redeemed
Investor Class		(63,471,319	)		(178,191,181	)
Advisor Class		(53,867,732	)		(88,170,899	)
A-Class		(1,278,434	)		(1,835,763	)
C-Class		(3,395,400	)		(11,636,268	)
Total capital share activity		(18,474,570	)		25,167,418

204    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  GOVERNMENT LONG BOND 1.2x STRATEGY FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$10.96			$13.74			$11.78			$10.59			$10.50			$11.04
Income (loss) from investment operations:
Net investment incomeb		.19			.36			.36			.40			.41			.42
Net gain (loss) on securities (realized and unrealized)		2.55			(2.78	)		1.97			1.19			.09			(.54	)
Total from investment operations		2.74			(2.42	)		2.33			1.59			.50			(.12	)
Less distributions:
Distributions from net investment income		(.18	)		(.36	)		(.37	)		(.40	)		(.41	)		(.42	)
Total distributions		(.18	)		(.36	)		(.37	)		(.40	)		(.41	)		(.42	)
Net asset value, end of period		$13.52			$10.96			$13.74			$11.78			$10.59			$10.50
Total Returnc		25.15%			(17.71%	)		20.17%			15.43%			4.87%			(1.37%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$106,704			$282,388			$43,237			$30,695			$40,816			$33,223
Ratios to average net assets:
Net investment income		3.04%			3.16%			2.79%			3.75%			3.92%			3.69%
Total expenses		0.97%			0.98%			0.98%			0.97%			0.96%			0.94%
Portfolio turnover rate		720%			1,503%			1,794%			1,142%			1,357%			1,451%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$10.88			$13.66			$11.72			$10.54			$10.50			$11.07
Income (loss) from investment operations:
Net investment incomeb		.16			.32			.31			.34			.37			.37
Net gain (loss) on securities (realized and unrealized)		2.57			(2.80	)		1.93			1.19			.03			(.57	)
Total from investment operations		2.73			(2.48	)		2.24			1.53			.40			(.20	)
Less distributions:
Distributions from net investment income		(.15	)		(.30	)		(.30	)		(.35	)		(.36	)		(.37	)
Total distributions		(.15	)		(.30	)		(.30	)		(.35	)		(.36	)		(.37	)
Net asset value, end of period		$13.46			$10.88			$13.66			$11.72			$10.54			$10.50
Total Returnc		25.21%			(18.18%	)		19.49%			14.82%			3.86%			(2.10%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$30,695			$28,990			$7,867			$25,181			$10,815			$21,200
Ratios to average net assets:
Net investment income		2.42%			2.76%			2.49%			3.13%			3.44%			3.16%
Total expenses		1.47%			1.48%			1.48%			1.47%			1.46%			1.42%
Portfolio turnover rate		720%			1,503%			1,794%			1,142%			1,357%			1,451%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    205

  GOVERNMENT LONG BOND 1.2x STRATEGY FUND  

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$10.96			$13.75			$11.79			$10.60			$10.50			$11.07
Income (loss) from investment operations:
Net investment incomeb		.17			.33			.34			.38			.38			.40
Net gain (loss) on securities (realized and unrealized)		2.58			(2.79	)		1.95			1.19			.10			(.58	)
Total from investment operations		2.75			(2.46	)		2.29			1.57			.48			(.18	)
Less distributions:
Distributions from net investment income		(.17	)		(.33	)		(.33	)		(.38	)		(.38	)		(.39	)
Total distributions		(.17	)		(.33	)		(.33	)		(.38	)		(.38	)		(.39	)
Net asset value, end of period		$13.54			$10.96			$13.75			$11.79			$10.60			$10.50
Total Returnc		25.19%			(17.98%	)		19.84%			15.13%			4.71%			(1.88%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,530			$5,576			$11,119			$20,374			$11,460			$1,503
Ratios to average net assets:
Net investment income		2.70%			2.84%			2.74%			3.44%			3.64%			3.45%
Total expenses		1.22%			1.24%			1.23%			1.22%			1.22%			1.17%
Portfolio turnover rate		720%			1,503%			1,794%			1,142%			1,357%			1,451%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$10.94			$13.72			$11.77			$10.59			$10.50			$11.07
Income (loss) from investment operations:
Net investment incomeb		.12			.25			.25			.30			.31			.31
Net gain (loss) on securities (realized and unrealized)		2.57			(2.78	)		1.94			1.18			.08			(.57	)
Total from investment operations		2.69			(2.53	)		2.19			1.48			.39			(.26	)
Less distributions:
Distributions from net investment income		(.12	)		(.25	)		(.24	)		(.30	)		(.30	)		(.31	)
Total distributions		(.12	)		(.25	)		(.24	)		(.30	)		(.30	)		(.31	)
Net asset value, end of period		$13.51			$10.94			$13.72			$11.77			$10.59			$10.50
Total Returnc		24.68%			(18.56%	)		18.90%			14.20%			3.84%			(2.61%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,123			$12,695			$5,502			$6,239			$15,640			$7,293
Ratios to average net assets:
Net investment income		1.92%			2.17%			2.00%			2.80%			2.93%			2.69%
Total expenses		1.97%			2.00%			1.97%			1.98%			1.96%			1.93%
Portfolio turnover rate		720%			1,503%			1,794%			1,142%			1,357%			1,451%

206    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  GOVERNMENT LONG BOND 1.2x STRATEGY FUND  

FINANCIAL HIGHLIGHTS (concluded)

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    207

FUND PROFILE (Unaudited)

September 30, 2010

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: To provide total returns that inversely correlate to the price movements of a benchmark for U.S. Treasury debt instruments or futures contracts on a specified debt instrument on a daily basis. The Fund’s current benchmark is the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

“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 and derivative investments such as futures contracts.

208    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES†† - 50.3%
Freddie Mac1
0.28% due 10/25/10	$	25,000,000	$	24,998,325
0.26% due 06/21/11		25,000,000		24,963,475
0.26% due 06/24/11		25,000,000		24,963,050
Fannie Mae1
0.23% due 04/29/11		50,000,000		49,947,500
0.26% due 07/11/11		50,000,000		49,913,550
Farmer Mac2
0.25% due 06/23/11		50,000,000		49,926,400
Federal Farm Credit2
0.47% due 04/07/11		25,000,000		24,976,500
Total Federal Agency Discount Notes (Cost $249,577,166)				249,688,800
FEDERAL AGENCY NOTES†† - 4.1%
Freddie Mac1 1.63% due 04/26/11		20,000,000		20,152,740
Total Federal Agency Notes
(Cost $20,159,105)				20,152,740
REPURCHASE AGREEMENTS†† - 145.7%
Joint Repurchase Agreements3
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		102,875,981		102,875,981
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		102,761,451		102,761,451
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		42,463,410		42,463,410
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		10,849,021		10,849,021
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		10,615,853		10,615,853

	FACE		MARKET
	AMOUNT		VALUE
Individual Repurchase Agreement4
Barclays Capital
issued 09/30/10 at 0.08% due
10/01/10 (Secured by a U.S.
Treasury Bond, at a rate of
3.88% and maturing 08/15/40
as collateral, with a Market
value of $462,760,131) to be
repurchased at
$453,893,879	$	453,892,871	$	453,892,871
Total Repurchase Agreements (Cost $723,458,587)				723,458,587
Total Long Securities - 200.1% (Cost $993,194,858)			$	993,300,127
U.S. TREASURY OBLIGATIONS SOLD SHORT† - (86.4)%
U.S. Treasury Bond 3.88% due 08/15/40		415,163,000	$	(429,174,752	)
Total U.S. Treasury Obligations Sold Short
(Proceeds $428,148,967)				(429,174,752	)
Liabilities, Less Cash & Other Assets – (13.7)%				(67,560,259	)
Total Net Assets – 100.0%			$	496,565,116
			Unrealized
		CONTRACTS	GAIN
FUTURES CONTRACTS SOLD SHORT†
December 2010 Ultra Long-Term
U.S. Treasury Bond Futures
Contracts (Aggregate
Market Value of
Contracts $75,128,375)		532	$	1,497,734

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 7.
4	All or a portion of this security is pledged as short security collateral at September 30, 2010.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    209

2

  INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	269,841,540
Repurchase agreement, at value		723,458,587
Total investments		993,300,127
Segregated cash with broker		2,072,000
Receivables:
Fund shares sold		612,352
Interest		142,419
Total assets		996,126,898
Liabilities:
Securities sold short, at value		429,174,752
Payable for:
Variation margin		51,870
Securities purchased		29,151,750
Fund shares redeemed		38,076,372
Management fees		375,416
Custodian fees		13,765
Transfer agent/maintenance fees		104,282
Distribution and service fees		114,424
Portfolio accounting fees		36,138
Interest		2,194,225
Other		268,788
Total liabilities		499,561,782
Net assets	$	496,565,116
Net assets consist of:
Paid in capital		938,048,036
Accumulated net investment loss		(14,073,923	)
Accumulated net realized loss on sale of investments		(427,986,215	)
Net unrealized appreciation in value of investments		577,218
Net assets		496,565,116
Investor Class:
Net assets	$	286,232,166
Capital shares outstanding		24,291,847
Net asset value per share		$11.78
Advisor Class:
Net assets	$	51,253,197
Capital shares outstanding		4,506,784
Net asset value per share		$11.37
A-Class:
Net assets	$	61,606,472
Capital shares outstanding		5,337,882
Net asset value per share		$11.54
Maximum offering price per share*		$12.12
C-Class:
Net assets	$	97,473,281
Capital shares outstanding		9,113,237
Net asset value per share		$10.70
Investments, at cost	$	269,736,271
Repurchase agreement, at cost		723,458,587
Total cost	$	993,194,858
Securities sold short, proceeds		428,148,967

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	904,986
Total investment income		904,986
Expenses:
Management fees		2,566,326
Transfer agent and administrative fees		712,868
Distribution and Service Fees:
Advisor Class		116,654
A-Class		87,833
C-Class		583,485
Portfolio accounting fees		236,359
Trustees’ fees**		57,145
Short sales interest expense		10,171,264
Miscellaneous		446,975
Total expenses		14,978,909
Net investment loss		(14,073,923	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(9,398	)
Securities sold short		(90,402,004	)
Futures contracts		(20,529,995	)
Net realized loss		(110,941,397	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(5,913,206	)
Securities sold short		(87,816	)
Futures contracts		2,816,710
Net unrealized depreciation		(3,184,312	)
Net loss		(114,125,709	)
Net decrease in net assets resulting from operations	$	(128,199,632	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

210    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

  INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(14,073,923	)	$	(14,662,876	)
Net realized gain (loss) during the period on investments		(110,941,397	)		32,833,058
Net unrealized appreciation (depreciation) during the period on investments		(3,184,312	)		21,640,391
Net increase (decrease) in net assets resulting from operations		(128,199,632	)		39,810,573
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		472,998,287			927,321,564
Advisor Class		616,166,798			1,455,291,300
A-Class		24,413,761			82,743,378
C-Class		20,424,972			119,594,003
Cost of shares redeemed
Investor Class		(488,346,751	)		(839,298,013	)
Advisor Class		(620,843,858	)		(1,430,224,450	)
A-Class		(27,065,969	)		(60,831,796	)
C-Class		(36,826,103	)		(112,858,177	)
Net increase (decrease) from capital share transactions		(39,078,863	)		141,737,809
Net increase (decrease) in net assets		(167,278,495	)		181,548,382
Net assets:
Beginning of period		663,843,611			482,295,229
End of period	$	496,565,116		$	663,843,611
Accumulated net investment loss at end of period	$	(14,073,923	)	$	—
Capital share activity:
Shares sold
Investor Class		36,213,099			63,069,680
Advisor Class		49,887,521			102,550,797
A-Class		1,885,256			5,657,257
C-Class		1,713,536			8,857,871
Shares redeemed
Investor Class		(37,632,924	)		(57,561,726	)
Advisor Class		(50,086,356	)		(100,559,233	)
A-Class		(2,127,165	)		(4,243,912	)
C-Class		(3,111,628	)		(8,398,320	)
Total capital share activity		(3,258,661	)		9,372,414

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    211

  INVERSE GOVERNMENT LONG BOND STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.65			$13.32			$16.81			$19.37			$19.69			$18.94
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.33	)		(.11	)		.49			(.09	)		(.07	)
Net gain (loss) on securities (realized and unrealized)		(2.57	)		1.66			(3.38	)		(2.39	)		.40			.82
Total from investment operations		(2.87	)		1.33			(3.49	)		(1.90	)		.31			.75
Less distributions:
Distributions from net investment income		—			—			—			(.66	)		(.63	)		—
Total distributions		—			—			—			(.66	)		(.63	)		—
Net asset value, end of period		$11.78			$14.65			$13.32			$16.81			$19.37			$19.69
Total Returnc		(19.59%	)		9.98%			(20.76%	)		(9.98%	)		1.66%			3.96%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$286,232		$	376,574		$	269,155		$	237,900		$	313,117		$	768,588
Ratios to average net assets:
Net investment income (loss)		(4.66%	)		(2.23%	)		(0.72%	)		2.56%			3.68%			(0.40%	)
Combined net investment incomee		—			—			—			—			—			0.78%
Total expensesf		4.97%			2.53%			2.80%			3.45%			4.97%			4.66%
Operating expensesd,f		1.41%			1.41%			1.41%			1.40%			1.36%			1.33%
Portfolio turnover rate		379%			985%			584%			550%			192%			179%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.17			$12.95			$16.41			$19.01			$19.43			$18.79
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.39	)		(.18	)		.34			(.18	)		(.16	)
Net gain (loss) on securities (realized and unrealized)		(2.48	)		1.61			(3.28	)		(2.28	)		.39			.80
Total from investment operations		(2.80	)		1.22			(3.46	)		(1.94	)		.21			.64
Less distributions:
Distributions from net investment income		—			—			—			(.66	)		(.63	)		—
Total distributions		—			—			—			(.66	)		(.63	)		—
Net asset value, end of period		$11.37			$14.17			$12.95			$16.41			$19.01			$19.43
Total Returnc		(19.69%	)		9.42%			(21.08%	)		(10.39%	)		1.17%			3.41%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$51,253			$66,668			$35,153			$24,891			$43,782			$99,546
Ratios to average net assets:
Net investment income (loss)		(5.16%	)		(2.79%	)		(1.19%	)		1.84%			3.18%			(0.90%	)
Combined net investment incomee		—			—			—			—			—			0.28%
Total expensesf		5.47%			3.09%			3.36%			4.10%			5.47%			5.16%
Operating expensesd,f		1.91%			1.91%			1.91%			1.90%			1.86%			1.83%
Portfolio turnover rate		379%			985%			584%			550%			192%			179%

212    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  INVERSE GOVERNMENT LONG BOND STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.36			$13.10			$16.57			$19.16			$19.52			$18.84
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.35	)		(.15	)		.44			(.14	)		(.12	)
Net gain (loss) on securities (realized and unrealized)		(2.51	)		1.61			(3.32	)		(2.37	)		.41			.80
Total from investment operations		(2.82	)		1.26			(3.47	)		(1.93	)		.27			.68
Less distributions:
Distributions from net investment income		—			—			—			(.66	)		(.63	)		—
Total distributions		—			—			—			(.66	)		(.63	)		—
Net asset value, end of period		$11.54			$14.36			$13.10			$16.57			$19.16			$19.52
Total Returnc		(19.64%	)		9.62%			(20.94%	)		(10.25%	)		1.47%			3.61%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$61,606			$80,151			$54,574			$37,256			$69,606			$124,679
Ratios to average net assets:
Net investment income (loss)		(4.91%	)		(2.47%	)		(0.94%	)		2.37%			3.43%			(0.65%	)
Combined net investment incomee		—			—			—			—			—			0.53%
Total expensesf		5.23%			2.77%			3.00%			3.86%			5.22%			4.91%
Operating expensesd,f		1.66%			1.66%			1.65%			1.65%			1.61%			1.58%
Portfolio turnover rate		379%			985%			584%			550%			192%			179%
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$13.36			$12.28			$15.65			$18.26			$18.78			$18.25
Income (loss) from investment operations:
Net investment income (loss)b		(.34	)		(.43	)		(.25	)		.29			(.27	)		(.25	)
Net gain (loss) on securities (realized and unrealized)		(2.32	)		1.51			(3.12	)		(2.24	)		.38			.78
Total from investment operations		(2.66	)		1.08			(3.37	)		(1.95	)		.11			.53
Less distributions:
Distributions from net investment income		—			—			—			(.66	)		(.63	)		—
Total distributions		—			—			—			(.66	)		(.63	)		—
Net asset value, end of period		$10.70			$13.36			$12.28			$15.65			$18.26			$18.78
Total Returnc		(19.91%	)		8.79%			(21.53%	)		(10.87%	)		0.67%			2.90%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$97,473			$140,451			$123,413			$124,572			$213,175			$533,862
Ratios to average net assets:
Net investment income (loss)		(5.66%	)		(3.17%	)		(1.70%	)		1.62%			2.68%			(1.40%	)
Combined net investment losse		—			—			—			—			—			(0.22%	)
Total expensesf		5.98%			3.47%			3.81%			4.44%			5.97%			5.66%
Operating expensesd,f		2.41%			2.41%			2.41%			2.40%			2.36%			2.33%
Portfolio turnover rate		379%			985%			584%			550%			192%			179%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    213

  INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment Income (Loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Operating expenses exclude interest expense from securities sold short.

Prior to April 1, 2007, the Inverse Government Long Bond Strategy Fund operated under a Master-Feeder structure.

e	Ratios represent combined net investment income of the former Master Portfolio and the Fund. Ratios shown under the caption “Combined Net Investment Income (Loss)” for the year ended March 31, 2006 and preceding periods did not reflect the net investment income of the former Master Portfolio.
f	Expense ratios to average net assets include expenses of the corresponding former Master Portfolio for the year ended March 31, 2007 and preceding periods.

214    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

HIGH YIELD STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    215

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  HIGH YIELD STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 100.6%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	77,637,879	$	77,637,879
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		77,551,446		77,551,446
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		32,046,052		32,046,052
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		29,796,256		29,796,256
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		8,011,513		8,011,513
Total Repurchase Agreements (Cost $225,043,146)				225,043,146
Total Investments – 100.6% (Cost $225,043,146)			$	225,043,146
Liabilities, Less Cash & Other Assets – (0.6)%				(1,329,241	)
Net Assets – 100.0%			$	223,713,905

	CONTRACTS		UNREALIZED GAIN
FUTURES CONTRACTS PURCHASED†
December 2010 U.S. 5 Year Treasury Note Futures Contracts (Aggregate Market Value of Contracts $153,380,461)		1,269	$	1,527,269

CREDIT DEFAULT SWAP AGREEMENTS PROTECTION SOLD††,3
		Protection								Upfront
		Premium		Maturity		Notional		Market		Premiums		Unrealized
Index	Counterparty	Rate		Date		Principal		Value		Received		Appreciation
CDX.NA.HY-14 Index	Credit Suisse International		5.00%		06/20/15	$	53,800,000	$	53,461,060	$	1,546,000	$	1,157,495
CDX.NA.HY-14 Index	Goldman Sachs International		5.00%		06/20/15	$	170,700,000	$	169,624,590	$	5,693,250	$	4,364,902

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as credit default swap collateral at September 30, 2010.
3	Credit Default Swaps — See Note 3.

216    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	225,043,146
Total investments		225,043,146
Segregated cash with broker		997,600
Unrealized appreciation on swap agreements		5,522,397
Receivables:
Variation margin		58,438
Securities sold		57,500
Fund shares sold		1,256,618
Interest		344,211
Protection fees		313,728
Total assets		233,593,638
Liabilities:
Unamortized upfront premiums received		7,239,250
Payable for:
Fund shares redeemed		2,290,799
Management fees		133,547
Custodian fees		5,876
Transfer agent/maintenance fees		44,516
Distribution and service fees		49,820
Portfolio accounting fees		17,806
Interest		12,014
Other		86,105
Total liabilities		9,879,733
Net assets	$	223,713,905
Net assets consist of:
Paid in capital		228,564,686
Accumulated net investment loss		(561,169	)
Accumulated net realized loss on sale of investments		(11,339,278	)
Net unrealized appreciation in value of investments		7,049,666
Net assets		223,713,905
A-Class:
Net assets	$	7,841,902
Capital shares outstanding		353,180
Net asset value per share		$22.20
Maximum offering price per share*		$23.31
C-Class:
Net assets	$	8,806,889
Capital shares outstanding		409,046
Net asset value per share		$21.53
H-Class:
Net assets	$	207,065,114
Capital shares outstanding		9,338,621
Net asset value per share		$22.17
Repurchase agreement, at cost	$	225,043,146
Total cost	$	225,043,146

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	132,845
Total investment income		132,845
Expenses:
Management fees		543,590
Transfer agent and administrative fees		181,197
Distribution and Service Fees:
A-Class		7,197
C-Class		23,529
H-Class		168,118
Portfolio accounting fees		70,578
Trustees’ fees**		2,662
Miscellaneous		116,837
Total expenses		1,113,708
Net investment loss		(980,863	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Credit default index swaps		(3,109,688	)
Futures contracts		5,476,387
Net realized gain		2,366,699
Net unrealized appreciation (depreciation) during the period on:
Credit default index swaps		5,522,397
Futures contracts		1,537,916
Net unrealized appreciation		7,060,313
Net realized and unrealized gain		9,427,012
Net increase in net assets resulting from operations	$	8,446,149

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    217

  HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(980,863	)	$	(477,608	)
Net realized gain during the period on investments		2,366,699			10,336,355
Net unrealized appreciation during the period on investments		7,060,313			4,648,002
Net increase in net assets resulting from operations		8,446,149			14,506,749
Distributions to shareholders from:
Net investment income
A-Class		—			(338,599	)
C-Class		—			(251,769	)
H-Class		—			(896,465	)
Total distributions to shareholders		—			(1,486,833	)
Capital share transactions:
Proceeds From Sale Of Shares
A-Class		43,119,922			24,355,751
C-Class		42,683,344			56,181,252
H-Class		592,023,079			325,675,183
Distributions reinvested
A-Class		—			139,047
C-Class		—			240,261
H-Class		—			880,965
Cost of shares redeemed
A-Class		(40,085,061	)		(26,659,850	)
C-Class		(37,700,423	)		(54,919,509	)
H-Class		(409,291,624	)		(561,442,872	)
Net increase (decrease) from capital share transactions		190,749,237			(235,549,772	)
Net increase (decrease) in net assets		199,195,386			(222,529,856	)
Net assets:
Beginning of period		24,518,519			247,048,375
End of period	$	223,713,905		$	24,518,519
Accumulated/(Undistributed) net investment income/(loss) at end of period	$	(561,169	)	$	419,694
Capital share activity:
Shares sold
A-Class		2,044,700			1,256,391
C-Class		2,076,940			2,923,223
H-Class		28,003,273			17,490,919
Shares reinvested
A-Class		—			7,005
C-Class		—			12,410
H-Class		—			44,467
Shares redeemed
A-Class		(1,926,602	)		(1,373,795	)
C-Class		(1,836,511	)		(2,875,573	)
H-Class		(19,467,705	)		(31,157,166	)
Total capital share activity		8,894,095			(13,672,119	)

218    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  HIGH YIELD STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.42			$16.64			$24.31			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.14	)		(.26	)		(.16	)		.69
Net gain (loss) on securities (realized and unrealized)		1.92			5.39			(3.51	)		(1.31	)
Total from investment operations		1.78			5.13			(3.67	)		(.62	)
Less distributions:
Distributions from net investment income		—			(1.35	)		(4.00	)		(.07	)
Total distributions		—			(1.35	)		(4.00	)		(.07	)
Net asset value, end of period		$22.20			$20.42			$16.64			$24.31
Total Returnd		8.72%			31.07%			(16.15%	)		(2.49%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,842			$4,800			$5,748			$10,530
Ratios to average net assets:
Net investment income (loss)		(1.35%	)		(1.37%	)		(0.71%	)		2.79%	e
Total expenses		1.53%			1.54%			1.57%			1.50%	e
Portfolio turnover rate		—			—			—			—

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$19.87			$16.33			$24.12			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.21	)		(.40	)		(.25	)		.46
Net gain (loss) on securities (realized and unrealized)		1.87			5.29			(3.54	)		(1.27	)
Total from investment operations		1.66			4.89			(3.79	)		(.81	)
Less distributions:
Distributions from net investment income		—			(1.35	)		(4.00	)		(.07	)
Total distributions		—			(1.35	)		(4.00	)		(.07	)
Net asset value, end of period		$21.53			$19.87			$16.33			$24.12
Total Returnd		8.35%			30.17%			(16.83%	)		(3.25%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,807			$3,351			$1,773			$1,001
Ratios to average net assets:
Net investment income (loss)		(2.09%	)		(2.13%	)		(1.21%	)		1.90%	e
Total expenses		2.27%			2.29%			2.32%			2.22%	e
Portfolio turnover rate		—			—			—			—

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    219

  HIGH YIELD STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.38			$16.61			$24.28			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.14	)		(.26	)		(.04	)		.62
Net gain (loss) on securities (realized and unrealized)		1.93			5.38			(3.63	)		(1.27	)
Total from investment operations		1.79			5.12			(3.67	)		(.65	)
Less distributions:
Distributions from net investment income		—			(1.35	)		(4.00	)		(.07	)
Total distributions		—			(1.35	)		(4.00	)		(.07	)
Net asset value, end of period		$22.17			$20.38			$16.61			$24.28
Total Returnd		8.78%			31.07%			(16.16%	)		(2.61%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$207,065			$16,368			$239,528			$64,290
Ratios to average net assets:
Net investment income (loss)		(1.33%	)		(1.37%	)		(0.20%	)		2.55%	e
Total expenses		1.51%			1.53%			1.56%			1.49%	e
Portfolio turnover rate		—			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: April 16, 2007.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Annualized

220    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

INVERSE HIGH YIELD STRATEGY FUND

OBJECTIVE: To provide investment results that inversely correlate to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
H-Class	April 16, 2007
A-Class	April 16, 2007
C-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    221

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INVERSE HIGH YIELD STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 105.7%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	5,209,916	$	5,209,916
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		5,204,116		5,204,116
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/102		2,185,868		2,185,868
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		2,150,461		2,150,461
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		537,616		537,616
Total Repurchase Agreements (Cost $15,287,977)				15,287,977
Total Investments – 105.7% (Cost $15,287,977)			$	15,287,977
Total Liabilities, Less Cash & Other Assets – (5.7)%				(829,685	)
Total Net Assets – 100.0%			$	14,458,292

			UNREALIZED
	CONTRACTS		LOSS
FUTURES CONTRACTS SOLD SHORT†
December 2010 U.S. 5 Year Treasury Note Futures Contracts (Aggregate Market Value of
Contracts $12,086,719)		100	$	(86,853	)

CREDIT DEFAULT SWAP AGREEMENTS PROTECTION PURCHASED††
												Upfront			Unrealized
		Protection			Maturity		Notional		Market			Premiums			Appreciation/
Index	Counterparty	Premium Rate			Date		Principal		Value			Paid			(Depreciation)
CDX.NA.HY-14 Index	Credit Suisse International		5.00	%		06/20/15	$	7,800,000	$	(7,750,860	)	$	272,500		$	(218,932	)
CDX.NA.HY-14 Index	Goldman Sachs International		5.00	%		06/20/15	$	6,700,000	$	(6,657,790	)	$	(6,062	)		$46,002

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Repurchase Agreements — See Note 7.
2	All or a portion of this security is pledged as credit default swap collateral at September 30, 2010.

222    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Repurchase agreement, at value	$	15,287,977
Total investments		15,287,977
Segregated cash with broker		85,600
Unamortized upfront premiums paid		266,438
Unrealized appreciation on swap agreements		46,002
Receivables:
Securities sold		9,375
Fund shares sold		30,325
Interest		5,498
Total assets		15,731,215
Liabilities:
Unrealized depreciation on swap agreements		218,932
Payable for:
Variation margin		5,028
Securities purchased		16,875
Fund shares redeemed		972,835
Management fees		10,265
Custodian fees		451
Transfer agent/maintenance fees		3,422
Distribution and service fees		4,663
Portfolio accounting fees		1,369
Interest		27,776
Protection fees		2,883
Other		8,424
Total liabilities		1,272,923
Net assets	$	14,458,292
Net assets consist of:
Paid in capital		22,739,984
Accumulated net investment loss		(154,383	)
Accumulated net realized loss on sale of investments		(7,867,526	)
Net unrealized depreciation in value of investments		(259,783	)
Net assets		14,458,292
A-Class:
Net assets	$	2,230,925
Capital shares outstanding		64,793
Net asset value per share		$34.43
Maximum offering price per share*		$36.15
C-Class:
Net assets	$	1,850,194
Capital shares outstanding		55,006
Net asset value per share		$33.64
H-Class:
Net assets	$	10,377,173
Capital shares outstanding		300,695
Net asset value per share		$34.51
Repurchase agreement, at cost		15,287,977
Total cost	$	15,287,977

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 30, 2010

Investment Income:
Interest	$	18,131
Total investment income		18,131
Expenses:
Management fees		80,854
Transfer agent and administrative fees		26,951
Distribution and Service Fees:
A-Class		3,512
C-Class		10,396
H-Class		20,840
Portfolio accounting fees		10,780
Trustees’ fees**		870
Miscellaneous		18,311
Total expenses		172,514
Net investment loss		(154,383	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Credit default index swaps		(1,692,730	)
Futures contracts		(824,918	)
Net realized loss		(2,517,648	)
Net unrealized appreciation (depreciation)
during the period on:
Credit default index swaps		(172,930	)
Futures contracts		(113,685	)
Net unrealized depreciation		(286,615	)
Net loss		(2,804,263	)
Net decrease in net assets resulting from operations	$	(2,958,646	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    223

  INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(154,383	)	$	(228,310	)
Net realized loss during the period on investments		(2,517,648	)		(5,502,310	)
Net unrealized depreciation during the period on investments		(286,615	)		(541,574	)
Net decrease in net assets resulting from operations		(2,958,646	)		(6,272,194	)
Distributions to shareholders from:
Net realized gain
A-Class		—			(3,470	)
C-Class		—			(17,572	)
H-Class		—			(47,904	)
Total distributions to shareholders		—			(68,946	)
Capital share transactions:
Proceeds from sale of shares
A-Class		9,056,784			12,627,238
C-Class		888,178			9,043,657
H-Class		132,023,765			175,820,086
Distributions reinvested
A-Class		—			1,532
C-Class		—			12,023
H-Class		—			45,507
Cost of shares redeemed
A-Class		(8,664,449	)		(12,117,361	)
C-Class		(855,731	)		(7,250,037	)
H-Class		(147,309,528	)		(156,508,926	)
Net increase (decrease) from capital share transactions		(14,860,981	)		21,673,719
Net increase (decrease) in net assets		(17,819,627	)		15,332,579
Net assets:
Beginning of period		32,277,919			16,945,340
End of period	$	14,458,292		$	32,277,919
Accumulated net investment loss at end of period	$	(154,383	)	$	—
Capital share activity:
Shares sold
A-Class		244,310			297,756
C-Class		24,194			204,716
H-Class		3,502,789			3,800,768
Shares reinvested
A-Class		—			38
C-Class		—			305
H-Class		—			1,133
Shares redeemed
A-Class		(238,430	)		(280,194	)
C-Class		(23,599	)		(166,550	)
H-Class		(3,926,272	)		(3,327,437	)
Total capital share activity		(417,008	)		530,535

224    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  INVERSE HIGH YIELD STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$38.51			$55.13			$51.26			$50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.25	)		(.63	)		(.10	)		.54
Net gain (loss) on securities (realized and unrealized)		(3.83	)		(15.60	)		5.29			.72
Total from investment operations		(4.08	)		(16.23	)		5.19			1.26
Less distributions:
Distributions from realized gains		—			(.39	)		(1.32	)		—
Total distributions		—			(.39	)		(1.32	)		—
Net asset value, end of period		$34.43			$38.51			$55.13			$51.26
Total Returnd		(10.59%	)		29.47%			10.17%			2.52%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,231			$2,269			$2,278			$1,673
Ratios to average net assets:
Net investment income (loss)		(1.35%	)		(1.43%	)		(0.19%	)		1.09%	e
Total expenses		1.52%			1.54%			1.52%			1.52%	e
Portfolio turnover rate		—			—			—			—

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$37.77			$54.49			$51.06			$50.00
Income (loss) from investment operations:
Net investment lossc		(.38	)		(.95	)		(.52	)		(.62	)
Net gain (loss) on securities (realized and unrealized)		(3.75	)		(15.38	)		5.27			1.68
Total from investment operations		(4.13	)		(16.33	)		4.75			1.06
Less distributions:
Distributions from realized gains		—			(.39	)		(1.32	)		—
Total distributions		—			(.39	)		(1.32	)		—
Net asset value, end of period		$33.64			$37.77			$54.49			$51.06
Total Returnd		(10.93%	)		(30.00%	)		9.34%			2.12%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,850			$2,055			$869			$2,958
Ratios to average net assets:
Net investment loss		(2.11%	)		(2.18%	)		(1.00%	)		(1.25%	)e
Total expenses		2.28%			2.29%			2.28%			2.26%	e
Portfolio turnover rate		—			—			—			—

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    225

  INVERSE HIGH YIELD STRATEGY FUND

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.

	Period Ended			Year Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$38.60			$55.26			$51.38			$50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.26	)		(.61	)		(.29	)		1.44
Net gain (loss) on securities (realized and unrealized)		(3.83	)		(15.66	)		5.49			(.06	)
Total from investment operations		(4.09	)		(16.27	)		5.20			1.38
Less distributions:
Distributions from realized gains		—			(.39	)		(1.32	)		—
Total distributions		—			(.39	)		(1.32	)		—
Net asset value, end of period		$34.51			$38.60			$55.26			$51.38
Total Returnd		(10.60%	)		(29.47%	)		10.17%			2.76%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,377			$27,954			$13,799			$6,536
Ratios to average net assets:
Net investment income (loss)		(1.36%	)		(1.43%	)		(0.55%	)		2.84%	e
Total expenses		1.53%			1.53%			1.53%			1.52%	e
Portfolio turnover rate		—			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations April 16, 2007.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Annualized

226    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: To provide security of principal, high current income, and liquidity.

Holdings Diversification (Market Exposure as % of Net Assets)

FADN — Federal Agency Discount Notes.
FAN — Federal Agency Note.

Inception Dates:
Investor Class	December 1, 1993
Investor2 Class	July 10, 2009
Advisor Class	April 1, 1998
A-Class	March 31, 2004
C-Class	October 19, 2000

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    227

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  U.S. GOVERNMENT MONEY MARKET FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES†† - 41.9%
Freddie Mac1
0.27% due 10/25/10	$	25,000,000	$	24,995,417
0.29% due 11/29/10		25,000,000		24,988,118
0.24% due 12/28/10		25,000,000		24,985,333
0.26% due 12/27/10		25,000,000		24,984,292
0.21% due 01/18/11		25,000,000		24,984,104
0.30% due 03/31/11		25,000,000		24,962,292
0.26% due 07/05/11		25,000,000		24,949,986
0.26% due 11/02/10		15,000,000		14,996,533
0.25% due 02/22/11		15,000,000		14,985,000
0.23% due 04/05/11		15,000,000		14,982,175
0.26% due 06/21/11		15,000,000		14,972,056
Fannie Mae1
0.30% due 11/15/10		50,000,000		49,981,206
0.36% due 01/18/11		50,000,000		49,945,500
0.27% due 10/01/10		25,000,000		25,000,000
0.28% due 11/18/10		25,000,000		24,990,667
0.24% due 12/20/10		25,000,000		24,986,667
Farmer Mac2
0.25% due 06/01/11		25,000,000		24,957,812
0.25% due 06/23/11		15,000,000		14,972,396
0.27% due 11/22/10		11,000,000		10,995,710
Federal Home Loan Bank2
0.24% due 01/21/11		40,000,000		39,970,133
Total Federal Agency Discount Notes
(Cost $500,585,397)				500,585,397
FEDERAL AGENCY NOTES†† - 3.4%
Federal Home Loan Bank2
0.48% due 10/25/10		25,410,000		25,410,903
0.85% due 12/03/10		15,000,000		15,012,542
Total Federal Agency Notes
(Cost $40,423,445)				40,423,445
REPURCHASE AGREEMENTS††,3 - 53.3%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		270,499,250		270,499,250
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		225,676,989		225,676,989
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		93,254,954		93,254,954
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		23,825,806		23,825,806

	FACE		MARKET
	AMOUNT		VALUE
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10	$	23,313,739	$	23,313,739
Total Repurchase Agreements
(Cost $636,570,738)				636,570,738
COMMERCIAL PAPER†† - 6.0%
Societe Generale
0.54% due 10/18/10		5,000,000		4,998,701
0.43% due 10/29/10		5,000,000		4,998,328
ING (US) Funding LLC
0.47% due 10/08/10		7,000,000		6,999,360
Danske Corp.
0.40% due 10/04/10		5,000,000		4,999,833
Sheffield Receivables Corp.
0.26% due 11/19/10		5,000,000		4,998,231
Nestle Capital Corp.
0.25% due 11/23/10		5,000,000		4,998,160
Coca-Cola Co.
0.23% due 12/01/10		5,000,000		4,998,052
General Reinsurance Corp.
0.25% due 12/02/10		5,000,000		4,997,847
Prudential plc
0.42% due 11/10/10		5,000,000		4,997,667
American Honda Finance
0.24% due 12/17/10		5,000,000		4,997,433
Bank of America
0.30% due 12/22/10		5,000,000		4,996,583
Barclays (US) Funding LLC
0.33% due 01/24/11		5,000,000		4,994,729
UBS Finance (DE) LLC
0.32% due 03/09/11		5,000,000		4,993,044
Southern Company Funding Corp.
0.27% due 10/12/10		4,500,000		4,499,629
Total Commercial Paper
(Cost $71,467,597)				71,467,597
Total Investments – 104.6%
(Cost $1,249,047,177)			$	1,249,047,177
Liabilities, Less Cash & Other Assets – (4.6)%				(54,405,824	)
Total Net Assets – 100.0%			$	1,194,641,353

††	Value determined based on Level 2 inputs — See Note 8.
1	On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 7.
	plc — Public Limited Company

228    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

2

  U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	612,476,439
Repurchase agreement, at value		636,570,738
Total investments		1,249,047,177
Cash		306,942
Receivables:
Fund shares sold		32,019,737
Interest		169,413
Total assets		1,281,543,269
Liabilities:
Payable for:
Fund shares redeemed		86,064,810
Custodian fees		35,801
Transfer agent/maintenance fees		20,357
Portfolio accounting fees		60,158
Interest		103
Other		720,687
Total liabilities		86,901,916
Net assets	$	1,194,641,353
Net assets consist of:
Paid in capital		1,194,592,796
Undistributed net investment income		681
Undistributed net realized gain on sale of investments		47,876
Net unrealized appreciation in value of investments		—
Net assets		1,194,641,353
Investor Class:
Net assets	$	722,268,318
Capital shares outstanding		722,658,535
Net asset value per share		$1.00
Investor2 Class:
Net assets	$	55,839,794
Capital shares outstanding		55,836,287
Net asset value per share		$1.00
Advisor Class:
Net assets	$	300,002,786
Capital shares outstanding		300,112,341
Net asset value per share		$1.00
A-Class:
Net assets	$	51,191,238
Capital shares outstanding		51,207,582
Net asset value per share		$1.00
C-Class:
Net assets	$	65,339,217
Capital shares outstanding		65,389,020
Net asset value per share		$1.00
Investments, at cost	$	612,476,439
Repurchase agreement, at cost		636,570,738
Total cost	$	1,249,047,177

STATEMENT OF
OPERATIONS (Unaudited)

For the Period Ended September 2010

Investment Income:
Interest	$	1,657,089
Other income		337
Total investment income		1,657,426
Expenses:
Management fees		3,304,179
Transfer agent and administrative fees		1,321,686
Distribution and Service Fees:
Advisor Class		714,948
A-Class		44,748
C-Class		386,201
Portfolio accounting fees		367,464
Trustees’ fees*		46,902
Registration		399,558
Miscellaneous		723,086
Total expenses		7,308,772
Less:
Expenses waived by Service Company		(1,239,595	)
Expenses waived by Distributor		(1,145,916	)
Expenses waived by Advisor		(3,302,011	)
Total waived expenses		(5,687,522	)
Net expenses		1,621,250
Net investment income		36,176
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		19,669
Net realized gain		19,669
Net unrealized appreciation (depreciation)
during the period		—
Net realized and unrealized gain		19,669
Net increase in net assets resulting from operations	$	55,845

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements.  THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    229

3

  U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	36,176		$	83,445
Net realized gain during the period on investments		19,669			35,221
Net unrealized appreciation during the period on investments		—			—
Net increase in net assets resulting from operations		55,845			118,666
Distributions to shareholders from:
Net investment income
Investor Class		(23,856	)		(53,992	)
Investor2 Class		(1,392	)		(2,310	)
Advisor Class		(7,832	)		(18,327	)
A-Class		(980	)		(2,196	)
C-Class		(2,116	)		(5,899	)
Total distributions to shareholders		(36,176	)		(82,724	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		4,935,256,098			12,766,483,416
Investor2 Class		30,982,079			39,417,792
Advisor Class		3,125,328,207			12,882,811,665
A-Class		75,434,959			99,314,014
C-Class		189,828,074			1,043,565,916
Distributions Reinvested
Investor Class		23,814			53,863
Investor2 Class		973			1,613
Advisor Class		7,823			18,334
A-Class		937			2,109
C-Class		2,034			5,744
Value of proceeds from merger
Investor2 Class		—			62,269,356
Cost of shares redeemed
Investor Class		(5,085,789,478	)		(13,008,084,870	)
Investor2 Class		(26,334,050	)		(50,501,476	)
Advisor Class		(2,949,207,334	)		(13,100,463,671	)
A-Class		(54,885,670	)		(117,729,668	)
C-Class		(201,089,949	)		(1,102,305,047	)
Net increase (decrease) from capital share transactions		39,558,517			(485,140,910	)
Net increase (decrease) in net assets		39,578,186			(485,104,968	)
Net Assets:
Beginning of period		1,155,063,167			1,640,168,135
End of period	$	1,194,641,353		$	1,155,063,167
Undistributed net investment income at end of period	$	681		$	681

230    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

1

  U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Capital share activity:
Shares sold
Investor Class		4,935,256,098			12,766,483,413
Investor2 Class		30,982,079			101,687,148
Advisor Class		3,125,328,207			12,882,811,665
A-Class		75,434,959			99,314,014
C-Class		189,828,074			1,043,565,916
Shares reinvested
Investor Class		23,814			53,863
Investor2 Class		973			1,613
Advisor Class		7,823			18,334
A-Class		938			2,109
C-Class		2,034			5,743
Shares redeemed
Investor Class		(5,085,789,479	)		(13,008,084,868	)
Investor2 Class		(26,334,050	)		(50,501,476	)
Advisor Class		(2,949,207,333	)		(13,100,463,671	)
A-Class		(54,885,670	)		(117,729,668	)
C-Class		(201,089,949	)		(1,102,305,046	)
Total capital share activity		39,558,518			(485,140,911	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    231

2

  U.S. GOVERNMENT MONEY MARKET FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Income (loss) from investment operations:
Net investment incomeb		—	c		—	c		.01			.04			.04			.03
Net gain on securities (realized and unrealized)		—			—			—			—			—			—
Total from investment operations		—	c		—	c		.01			.04			.04			.03
Less distributions:
Distributions from net investment income		(—	)c		(—	)c		(.01	)		(.04	)		(.04	)		(.03	)
Total distributions		(—	)c		(—	)c		(.01	)		(.04	)		(.04	)		(.03	)
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Returnd		0.00%			0.01%			1.06%			3.76%			4.26%			2.79%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$722,268			$872,765			$1,114,286			$978,584			$982,347			$975,088
Ratios to average net assets:
Net investment income		0.01%			0.01%			1.02%			3.71%			4.20%			2.74%
Total expenses		0.93%			0.93%			0.95%			0.93%			0.92%			0.88%
Net expensese		0.25%			0.37%			0.90%			0.93%			0.92%			0.88%
Portfolio turnover rate		—			—			—			—			—			—

	Period Ended
	September 30,			Period Ended
Investor2 Class	2010		a	March 31, 2010f
Per Share Data
Net asset value, beginning of period		$1.00			$—
Income (loss) from investment operations:
Net investment incomeb		—	c		—	c
Net gain on securities (realized and unrealized)		—			—
Total from investment operations		—	c		—	c
Less distributions:
Distributions from net investment income		(—	)c		(—	)c
Total distributions		(—	)c		(—	)c
Net asset value, end of period		$1.00			$1.00
Total Returnd		0.00%			0.00%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$55,840			$51,190
Ratios to average net assets:
Net investment income		0.01%			0.01%	g
Total expenses		0.93%			0.94%	g
Net expensese		0.25%			0.29%	g
Portfolio turnover rate		—			—

232    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

  U.S. GOVERNMENT MONEY MARKET FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Income (loss) from investment operations:
Net investment incomeb		—	c		—	c		.01			.03			.04			.02
Net gain on securities (realized and unrealized)		—			—			—			—			—			—
Total from investment operations		—	c		—	c		.01			.03			.04			.02
Less distributions:
Distributions from net investment income		(—	)c		(—	)c		(.01	)		(.03	)		(.04	)		(.02	)
Total distributions		(—	)c		(—	)c		(.01	)		(.03	)		(.04	)		(.02	)
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Returnd		0.00%			0.01%			0.65%			3.24%			3.75%			2.28%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$300,003			$123,870			$341,425			$159,111			$204,068			$151,828
Ratios to average net assets:
Net investment income		0.01%			0.03%			0.55%			3.25%			3.70%			2.21%
Total expenses		1.43%			1.43%			1.45%			1.43%			1.42%			1.39%
Net expensese		0.24%			0.37%			1.26%			1.43%			1.42%			1.39%
Portfolio turnover rate		—			—			—			—			—			—

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(—	)c		.01			.03			.04			.03
Net gain on securities (realized and unrealized)		—			—			—			—			—			—
Total from investment operations		—	c		(—	)c		.01			.03			.04			.03
Less distributions:
Distributions from net investment income		(—	)c		(—	)c		(.01	)		(.03	)		(.04	)		(.03	)
Total distributions		(—	)c		(—	)c		(.01	)		(.03	)		(.04	)		(.03	)
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Returnd		0.00%			0.01%			0.85%			3.51%			4.01%			2.51%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$51,191			$30,640			$49,072			$21,174			$18,779			$14,324
Ratios to average net assets:
Net investment income (loss)		0.01%			(0.04%	)		0.74%			3.45%			3.97%			2.66%
Total expenses		1.18%			1.18%			1.20%			1.18%			1.17%			1.15%
Net expensese		0.24%			0.38%			1.09%			1.18%			1.17%			1.15%
Portfolio turnover rate		—			—			—			—			—			—

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    233

4

  U.S. GOVERNMENT MONEY MARKET FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(—	)c		—	c		.03			.03			.02
Net gain on securities (realized and unrealized)		—			—			—			—			—			—
Total from investment operations		—	c		(—	)c		—	c		.03			.03			.02
Less distributions:
Distributions from net investment income		(—	)c		(—	)c		(—	)c		(.03	)		(.03	)		(.02	)
Total distributions		(—	)c		(—	)c		(—	)c		(.03	)		(.03	)		(.02	)
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Returnd		0.00%			0.01%			0.26%			2.74%			3.24%			1.76%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$65,339			$76,598			$135,384			$121,436			$120,415			$131,045
Ratios to average net assets:
Net investment income (loss)		0.01%			(0.05%	)		0.24%			2.69%			3.20%			1.72%
Total expenses		1.93%			1.93%			1.95%			1.93%			1.92%			1.89%
Net expensese		0.25%			0.39%			1.70%			1.93%			1.92%			1.89%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after voluntary expense waivers.
f	Since commencement of operations July 10, 2009 - U.S. Government Money Market Fund Investor2 Class
g	Annualized

234    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

5

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1.    Organization and Significant Accounting Policies Organization

The Rydex Series Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company. The Trust offers eight separate classes of shares, Investor Class shares, Investor2 Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares and Institutional Class shares. C-Class shares have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. Sales of shares of each Class are made without a sales charge at the NAV, with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge, except for the U.S. Government Money Market Fund. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At September 30, 2010, the Trust consisted of fifty-nine separate Funds. This report covers the Target Beta and the Money Market Funds (the “Funds”), while the other Funds are contained in separate reports.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

Significant Accounting Policies

The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. The information contained in these notes may not apply to every Fund in the Trust. All time references are based on Eastern Time.

A. The Trust calculates a NAV twice each business day, first in the morning and again in the afternoon for the Russell 2000^® Fund and the S&P 500 Fund. All other Funds in the Trust will price at the afternoon NAV. The morning NAV is calculated at 10:45 a.m. and the afternoon NAV is calculated at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the

September 30, 2010, afternoon NAV. Equity securities listed on an exchange (NYSE or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, as of 4:00 p.m. Long options are valued using the bid price and short options are valued using the ask price. In the event that a settlement price is not available, fair valuation is enacted. Over-the-counter options held by the Trust are valued using the average bid price (for long options), or average ask price (for short options) 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 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act. Debt securities in a non 2a-7 money market fund with a maturity greater than 60 days at acquisition are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a debt security is valued at the reported bid price, at the close of business. Short term debt securities with a maturity of 60 days at acquisition or less and repurchase agreements are valued at amortized cost, which approximates market value.

Open-end investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange Traded Funds (“ETFs”) and closed-end investment companies are valued at the last quoted sales price.

The value of domestic equity index and credit default swap agreements entered into by a Fund 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. The swap’s market value is then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

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The value of currency index swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the broker quote.

The value of foreign equity agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the price at which orders are being filled at the close of the NYSE. In the event that no order is filled at 4:00 p.m., the security dealer provides a fair value quote at which the swap agreement is valued. The swap’s market value is then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair valued as determined in good faith by Rydex Investments under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

B. Security 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. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Net investment income is computed and dividends are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Income dividends in these Funds are accrued daily. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income, in the remaining Funds and distributions of net realized gains, if any, in all Funds are declared at least annually and recorded on the ex-dividend date and are determined in accordance

with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. When a Fund engages in a short sale of an equity or fixed income security, 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 cash and/or securities as collateral for short sales. The Fund is exposed to market risk based on the amount, if any, that the market value of the security exceeds the market value of the securities in the segregated account. Fees, if any, paid to brokers to borrow securities in connection with short sales are considered part of the cost of short sale transactions. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the treasury obligation to the lender and record this as an expense. Short dividends or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

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, that Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, that 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, that Fund 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 purchased by that Fund 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 that Fund’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 a Fund enters into a closing purchase transaction, that 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 enter into stock, bond and currency 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, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the

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transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

G. The Trust may enter into domestic equity index and domestic currency 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, equity index or domestic currency 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, equity index or domestic currency index. Swap agreements are used to obtain exposure to an equity or market without owning or taking physical custody of securities. The swap agreements are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

The Trust may enter into credit default swap agreements where one party, the protection buyer, makes an upfront or periodic payment to a counterparty, the protection seller, in exchange for the right to receive a contingent payment. The maximum amount of the payment may equal the notional amount, at par, of the underlying index or security as a result of a related credit event. Upfront payments received or made by a Fund, are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. The credit default contracts are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

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, a 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. At September 30, 2010, none of the Funds held forward currency contracts.

J. 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 Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity. The Funds may also purchase American Depository Receipts, U.S. Government securities, Commercial Paper and enter into repurchase agreements.

K. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate. Segregated cash with the broker is held as collateral for investments in derivative instruments such as futures contracts and index swap agreements.

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 A-Class shares and H-Class shares and service and distribution fees related to Advisor Class shares and C-Class shares, are charged directly to specific Classes. In addition,

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certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

M. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2.    Financial Instruments

As part of its investment strategy, the Trust may utilize short sales and a variety of derivative instruments, including options, futures, options on futures and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

A short sale is a transaction in which a Fund sells an equity or fixed income security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, that Fund will realize gain on the transaction. Conversely, if the security increases in price during the period, that Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

The risk associated with purchasing options is limited to the premium originally paid. 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.

There are several risks in connection with the use of futures contracts. 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.

There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions, due to the fact they could be considered illiquid. Although the

Trust will not enter into any swap agreement unless Rydex Investments believes that the other party to the transaction is creditworthy, the Funds 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.

There are several risks associated with credit default swaps. Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor,” receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return, the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. A Fund may enter into credit default swaps in which that Fund or its counterparty acts as guarantor. By acting as the guarantor of a swap, that Fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In conjunction with the use of short sales, options, futures, options on futures and swap agreements, 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 and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund.

The risks inherent in the use of short sales, options, futures contracts, options on futures contracts and swap agreements, include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3.    Disclosures about Credit Derivatives

In accordance with its principal investment strategy, the High Yield Strategy Fund enters into credit default swaps as a seller of protection primarily to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. If a credit event

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occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Principal reflects the maximum potential amount the Fund could be required to make as a seller of credit protection if a credit event occurs. As the seller of protection, the Fund receives periodic premium payments from the counterparty and may also receive or pay an upfront premium that serves as an adjustment to the stated periodic premium. In the event a credit event occurs, an adjustment will be made to any upfront premiums that were received by a reduction of 1.00% per credit event.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The table on page 216 included in the Schedule of Investments summarizes the information with regard to sold protection on credit default swap contracts as of September 30, 2010.

4.    Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.

Certain Funds seek to gain exposure to their respective benchmarks by investing in currency and financial-linked derivative instruments, including swap agreements, futures and options on futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Funds’
Fund	net assets on a daily basis
Nova Fund		85%
S&P 500 Fund		30%
Inverse S&P 500 Strategy Fund		100%
NASDAQ-100® Fund		15%
Inverse NASDAQ-100® Strategy Fund		100%
Mid-Cap 1.5x Strategy Fund		90%
Inverse Mid-Cap Strategy Fund		100%
Russell 2000® 1.5x Strategy Fund		108%
Russell 2000® Fund		55%
Inverse Russell 2000® Strategy Fund		100%
Europe 1.25x Strategy Fund		40%
Japan 2x Strategy Fund		200%
Strengthening Dollar 2x Strategy Fund		200%
Weakening Dollar 2x Strategy Fund		200%
Government Long Bond 1.2x Strategy Fund		25%
Inverse Government Long Bond Strategy Fund		15%
High Yield Strategy Fund		100%
Inverse High Yield Strategy Fund		100%

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2010:

Location on the Statements of Assets and Liabilities

Derivative
Investment Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation Margin	Variation Margin
	Unrealized Appreciation on Swap Agreements	Unrealized Depreciation on Swap Agreements
Currency contracts	Unrealized Appreciation on Swap Agreements	Unrealized Depreciation on Swap Agreements
	Variation Margin	Variation Margin
Interest Rate contracts	Variation Margin	Variation Margin
Credit contracts	Unrealized Appreciation on Swap Agreements	Unrealized Depreciation on Swap Agreements

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The following is a summary of the Funds’ derivative investments not accounted for as hedging investments under SFAS 133, categorized by primary risk exposure as of September 30, 2010:

	Asset Derivative Investments Value
	Futures		Swaps		Futures		Swaps		Futures		Credit		Total Value at
	Equity		Equity		Currency		Currency		Interest Rate		Default		September 30,
Fund	Contracts*		Contracts		Contracts*		Contracts		Contracts*		Contracts		2010
Nova Fund	$	67,888	$	—	$	—	$	—	$	—	$	—	$	67,888
S&P 500 Fund		68,034		—		—		—		—		—		68,034
Inverse S&P 500 Strategy Fund		81,111		440,630		—		—		—		—		521,741
NASDAQ-100® Fund		2,589,189		—		—		—		—		—		2,589,189
Inverse NASDAQ-100® Strategy Fund		889		112,532		—		—		—		—		113,421
Mid-Cap 1.5x Strategy Fund		412,302		67,317		—		—		—		—		479,619
Inverse Mid-Cap Strategy Fund		—		—		—		—		—		—		—
Russell 2000® 1.5x Strategy Fund		28,505		185,001		—		—		—		—		213,506
Russell 2000® Fund		43,926		39,562		—		—		—		—		83,488
Inverse Russell 2000® Strategy Fund		—		54,240		—		—		—		—		54,240
Europe 1.25x Strategy Fund		—		—		392,073		—		—		—		392,073
Japan 2x Strategy Fund		104,448		—		92,169		—		—		—		196,617
Strengthening Dollar 2x Strategy Fund		—		—		—		—		—		—		—
Weakening Dollar 2x Strategy Fund		—		—		2,524,290		800,754		—		—		3,325,044
Government Long Bond 1.2x Strategy Fund		—		—		—		—		596,491		—		596,491
Inverse Government Long Bond Strategy Fund		—		—		—		—		1,497,734		—		1,497,734
High Yield Strategy Fund		—		—		—		—		1,527,269		5,522,397		7,049,666
Inverse High Yield Strategy Fund		—		—		—		—		—		46,002		46,002

	Liability Derivative Investments Value
	Futures		Swaps		Futures		Swaps		Futures		Credit		Total Value at
	Equity		Equity		Currency		Currency		Interest Rate		Default		September 30,
Fund	Contracts*		Contracts		Contracts*		Contracts		Contracts*		Contracts		2010
Nova Fund	$	—	$	92,328	$	—	$	—	$	—	$	—	$	92,328
S&P 500 Fund		—		34,683		—		—		—		—		34,683
Inverse S&P 500 Strategy Fund		—		—		—		—		—		—		—
NASDAQ-100® Fund		—		216,608		—		—		—		—		216,608
Inverse NASDAQ-100® Strategy Fund		—		—		—		—		—		—		—
Mid-Cap 1.5x Strategy Fund		—		—		—		—		—		—		—
Inverse Mid-Cap Strategy Fund		—		9,556		—		—		—		—		9,556
Russell 2000® 1.5x Strategy Fund		—		13,161		—		—		—		—		13,161
Russell 2000® Fund		—		3,739		—		—		—		—		3,739
Inverse Russell 2000® Strategy Fund		983		93,279		—		—		—		—		94,262
Europe 1.25x Strategy Fund		204,908		—		—		—		—		—		204,908
Japan 2x Strategy Fund		—		—		—		—		—		—		—
Strengthening Dollar 2x Strategy Fund		—		—		1,788,415		471,039		—		—		2,259,454
Weakening Dollar 2x Strategy Fund		—		—		—		—		—		—		—
Government Long Bond 1.2x Strategy Fund		—		—		—		—		—		—		—
Inverse Government Long Bond Strategy Fund		—		—		—		—		—		—		—
High Yield Strategy Fund		—		—		—		—		—		—		—
Inverse High Yield Strategy Fund		—		—		—		—		86,853		218,932		305,785

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

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1

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations as of September 30, 2010:

Derivative Investment	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts and equity index swaps
	Change in net unrealized appreciation (depreciation) on futures contracts and equity index swaps
Currency contracts	Net realized gain (loss) on futures contracts and currency index swaps
	Change in net unrealized appreciation (depreciation) on futures contracts and currency index swaps
Interest Rate contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures contracts
Credit contracts	Net realized gain (loss) on credit default swaps
	Change in net unrealized appreciation (depreciation) on credit default swaps

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of September 30, 2010:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
	Futures			Swaps			Futures			Swaps			Futures			Credit
	Equity			Equity			Currency			Currency			Interest Rate			Default
Fund	Contracts			Contracts			Contracts			Contracts			Contracts			Contracts			Total
Nova Fund	$	(772,170	)	$	(1,657,535	)	$	—		$	—		$	—		$	—		$	(2,429,705	)
S&P 500 Fund		(867,091	)		(4,167,636	)		—			—			—			—			(5,034,727	)
Inverse S&P 500 Strategy Fund		(23,138,051	)		(2,080,570	)		—			—			—			—			(25,218,621	)
NASDAQ-100® Fund		(2,485,833	)		(3,091,703	)		—			—			—			—			(5,577,536	)
Inverse NASDAQ-100® Strategy Fund		(428,380	)		(3,129,836	)		—			—			—			—			(3,558,216	)
Mid-Cap 1.5x Strategy Fund		(3,110,284	)		95,638			—			—			—			—			(3,014,646	)
Inverse Mid-Cap Strategy Fund		(359,128	)		(274,273	)		—			—			—			—			(633,401	)
Russell 2000® 1.5x Strategy Fund		(1,660,767	)		(235,149	)		—			—			—			—			(1,895,916	)
Russell 2000® Fund		(1,114,686	)		326,397			—			—			—			—			(788,289	)
Inverse Russell 2000® Strategy Fund		(1,172,400	)		(2,958,206	)		—			—			—			—			(4,130,606	)
Europe 1.25x Strategy Fund		(2,278,241	)		—			(674,747	)		—			—			—			(2,952,988	)
Japan 2x Strategy Fund		(1,400,997	)					334,597			—			—			—			(1,066,400	)
Strengthening Dollar 2x Strategy Fund		—			—			729,067			(383,803	)		—			—			345,264
Weakening Dollar 2x Strategy Fund		—			—			(1,949,695	)		(506,778	)		—			—			(2,456,473	)
Government Long Bond 1.2x Strategy Fund		—			—			—			—			5,291,344			—			5,291,344
Inverse Government Long Bond Strategy Fund		—			—			—			—			(20,529,995	)		—			(20,529,995	)
High Yield Strategy Fund		—			—			—			—			5,476,387			(3,109,688	)		2,366,699
Inverse High Yield Strategy Fund		—			—			—			—			(824,918	)		(1,692,730	)		(2,517,648	)
Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations
	Futures			Swaps			Futures			Swaps			Futures			Credit
	Equity			Equity			Currency			Currency			Interest Rate			Default
Fund	Contracts			Contracts			Contracts			Contracts			Contracts			Contracts			Total
Nova Fund	$	(11,577	)	$	(1,219,266	)	$	—		$	—		$	—		$	—		$	(1,230,843	)
S&P 500 Fund		67,293			(2,210,387	)		—			—			—			—			(2,143,094	)
Inverse S&P 500 Strategy Fund		(2,395	)		7,005,563			—			—			—			—			7,003,168
NASDAQ-100® Fund		2,564,430			(295,444	)		—			—			—			—			2,268,986
Inverse NASDAQ-100® Strategy Fund		1,026			1,501,402			—			—			—			—			1,502,428
Mid-Cap 1.5x Strategy Fund		320,141			(1,090,350	)		—			—			—			—			(770,209	)
Inverse Mid-Cap Strategy Fund		(496	)		161,030			—			—			—			—			160,534
Russell 2000® 1.5x Strategy Fund		31,340			(957,832	)		—			—			—			—			(926,492	)
Russell 2000® Fund		68,013			(274,387	)		—			—			—			—			(206,374	)
Inverse Russell 2000® Strategy Fund		(16,731	)		241,585			—			—			—			—			224,854
Europe 1.25x Strategy Fund		(359,574	)		—			366,909			—			—			—			7,335
Japan 2x Strategy Fund		(590,263	)		—			623,388			—			—			—			33,125
Strengthening Dollar 2x Strategy Fund		—			—			(2,521,875	)		(549,036	)		—			—			(3,070,911	)
Weakening Dollar 2x Strategy Fund		—			—			3,004,428			832,611			—			—			3,837,039
Government Long Bond 1.2x Strategy Fund		—			—			—			—			306,014			—			306,014
Inverse Government Long Bond Strategy Fund		—			—			—			—			2,816,710			—			2,816,710
High Yield Strategy Fund		—			—			—			—			1,537,916			5,522,397			7,060,313
Inverse High Yield Strategy Fund		—			—			—			—			(113,685	)		(172,930	)		(286,615	)

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

5.    Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Trust pays Rydex Investments investment advisory fees calculated at an annualized rate of 0.50% of the average daily net assets of the Government Long Bond 1.2x Strategy Fund and U.S. Government Money Market Fund; 0.75% of the average daily net assets of the Nova Fund, S&P 500 Fund, NASDAQ-100^® Fund, Russell 2000^® Fund, S&P 500 Pure Growth Fund, S&P 500 Pure Value Fund, S&P MidCap 400 Pure Growth Fund, S&P MidCap 400 Pure Value Fund, S&P SmallCap 600 Pure Growth Fund, S&P SmallCap 600 Pure Value Fund, Japan 2x Strategy Fund, High Yield Strategy Fund, and Inverse High Yield Strategy Fund; 0.85% of the average daily net assets of the Real Estate Fund; and 0.90% of the average daily net assets of the remaining Funds covered in this report.

Rydex Investments 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 Government Long Bond 1.2x Strategy Fund and U.S. Government Money Market Fund; and 0.25% of the average daily net assets of the remaining Funds covered in this report.

Rydex Investments also provides accounting services to the Trust for fees 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 Fund.

Rydex Investments engages external service providers to perform other necessary services for the Trust, such as accounting and audit related services, legal services, printing and mailing, etc., on a pass-through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets. Organizational and setup costs for new Funds are paid by the Trust.

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 the Distributor 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 compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

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 ongoing services to the shareholder. The annual 0.75% distribution fee reimburses the Distributor for paying the shareholder’s financial advisor an ongoing sales commission. The Distributor advances the first year’s service and distribution fees to the Financial Advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

Rydex Investments and its affiliates have voluntarily agreed to waive their fees, including but not limited to 12b-1 and shareholder services and investment advisory fees, in an attempt to maintain a positive net yield for the U.S. Government Money Market Fund. Rydex Investments or its affiliates may terminate this voluntary waiver at any time upon notice to the Fund. When 12b-1 and shareholder services fees are waived, dealer compensation will be reduced to the extent of such waiver.

During the period ended September 30, 2010, the Distributor retained sales charges of $321,536 relating to sales of
A-Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

6.    Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on Federal income tax returns for all open tax years (fiscal years 2007 — 2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. 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, will result in reclassifications. This may include net operating losses not utilized during the current period, capital loss carryforward expired, and the utilization of earnings and profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

At September 30, 2010, 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 Unrealized		Tax Unrealized			Net Unrealized
Fund	Cost		Gain		Loss			Gain (Loss)
Nova Fund	$	54,729,101	$	7,981,398	$	(250,120	)	$	7,731,278
S&P 500 Fund		84,389,130		1,005,600		(66,659	)		938,941
Inverse S&P 500 Strategy Fund		290,853,865		37,711		—			37,711
NASDAQ-100® Fund		349,735,561		264,301,665		(5,546,024	)		258,755,641
Inverse NASDAQ-100® Strategy Fund		20,503,530		—		—			—
Mid-Cap 1.5x Strategy Fund		21,275,649		1,646,515		(117,970	)		1,528,545
Inverse Mid-Cap Strategy Fund		2,852,021		—		—			—
Russell 2000® 1.5x Strategy Fund		19,192,407		899,637		(120,095	)		779,542
Russell 2000® Fund		19,573,834		—		(664,546	)		(664,546	)
Inverse Russell 2000® Strategy Fund		31,731,516		—		—			—
S&P 500 Pure Growth Fund		64,411,971		4,432,315		(392,153	)		4,040,162
S&P 500 Pure Value Fund		16,289,045		1,661,111		(2,826	)		1,658,285
S&P MidCap 400 Pure Growth Fund		48,611,205		6,047,756		(274,531	)		5,773,225
S&P MidCap 400 Pure Value Fund		46,719,867		5,882,720		(256,768	)		5,625,952
S&P SmallCap 600 Pure Growth Fund		10,282,021		1,870,315		(36,696	)		1,833,619
S&P SmallCap 600 Pure Value Fund		18,858,609		703,409		(564,463	)		138,946
Europe 1.25x Strategy Fund		22,135,589		—		(286,356	)		(286,356	)
Japan 2x Strategy Fund		2,035,403		—		—			—
Strengthening Dollar 2x Strategy Fund		29,781,205		—		—			—
Weakening Dollar 2x Strategy Fund		46,455,157		—		—			—
Real Estate Fund		52,473,842		5,199,412		(83,239	)		5,116,173
Government Long Bond 1.2x Strategy Fund		150,117,858		212,211		—			212,211
Inverse Government Long Bond Strategy Fund		993,194,858		111,634		(6,365	)		105,269
High Yield Strategy Fund		225,043,146		—		—			—
Inverse High Yield Strategy Fund		15,287,977		—		—			—
U.S. Government Money Market Fund		1,249,047,177		—		—			—

7.    Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The repurchase agreements executed by the joint account and outstanding at September 30, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Mizuho Financial Group, Inc.	0.20% due 10/01/10	$	771,379,883	$	771,379,883	$	771,384,168
HSBC Group	0.20% due 10/01/10		726,000,000		726,000,000		726,004,033
Morgan Stanley	0.19% due 10/01/10		300,000,000		300,000,000		300,001,583
Credit Suisse Group	0.18% due 10/01/10		218,789,532		218,789,532		218,790,626
Deutsche Bank	0.20% due 10/01/10		75,000,000		75,000,000		75,000,417
				$	2,091,169,415	$	2,091,180,827

At September 30, 2010, the collateral for the repurchase agreements in the joint account was as follows:

		Range
Security Type	Maturity Dates	of Rates	Par Value		Market Value
U.S. Treasury Bills	11/26/10 - 09/22/11	0.00%	$	1,011,680,300	$	1,009,973,066
U.S. Treasury Bonds	11/15/24 - 11/15/39	4.38% - 7.50%		643,266,700		740,520,142
U.S. Tip Note	04/15/14	1.25%		280,933,500		306,000,050
U.S. Treasury Note	10/31/16	3.13%		67,765,000		76,500,110
					$	2,132,993,368

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their 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 Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

8.    Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes.

Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securities.

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2010:

	Level 1		Level 1		Level 2		Level 2
	Investments		Other Financial		Investments		Other Financial
Fund	In Securities		Instruments*		In Securities		Instruments*		Total
Assets
Nova Fund	$	43,016,088	$	67,888	$	19,444,291	$	—	$	62,528,267
S&P 500 Fund		59,532,552		68,034		25,795,519		—		85,396,105
Inverse S&P 500 Strategy Fund		—		81,111		290,891,576		440,630		291,413,317
NASDAQ-100® Fund		520,076,276		2,589,189		88,414,926		—		611,080,391
Inverse NASDAQ-100® Strategy Fund		—		889		20,503,530		112,532		20,616,951
Mid-Cap 1.5x Strategy Fund		14,423,423		412,302		8,380,771		67,317		23,283,813
Inverse Mid-Cap Strategy Fund		—		—		2,852,021		—		2,852,021
Russell 2000® 1.5x Strategy Fund		8,685,355		28,505		11,286,594		185,001		20,185,455
Russell 2000® Fund		5,341,509		43,926		13,567,779		39,562		18,992,776
Inverse Russell 2000® Strategy Fund		—		—		31,731,516		54,240		31,785,756
S&P 500 Pure Growth Fund		67,825,465		—		626,668		—		68,452,133
S&P 500 Pure Value Fund		17,827,664		—		119,666		—		17,947,330
S&P MidCap 400 Pure Growth Fund		53,619,491		—		764,939		—		54,384,430
S&P MidCap 400 Pure Value Fund		51,975,159		—		370,660		—		52,345,819
S&P SmallCap 600 Pure Growth Fund		11,970,506		—		145,134		—		12,115,640
S&P SmallCap 600 Pure Value Fund		18,833,113		—		164,442		—		18,997,555
Europe 1.25x Strategy Fund		15,783,054		187,165		6,066,179		—		22,036,398
Japan 2x Strategy Fund		—		196,617		2,035,403		—		2,232,020
Strengthening Dollar 2x Strategy Fund		—		—		29,781,205		—		29,781,205
Weakening Dollar 2x Strategy Fund		—		2,524,290		46,455,157		800,754		49,780,201
Real Estate Fund		57,590,015		—		—		—		57,590,015
Government Long Bond 1.2x Strategy Fund		147,106,760		596,491		3,223,309		—		150,926,560
Inverse Government Long Bond Strategy Fund		—		1,497,734		993,300,127		—		994,797,861
High Yield Strategy Fund		—		1,527,269		225,043,146		5,522,397		232,092,812
Inverse High Yield Strategy Fund		—		—		15,287,977		46,002		15,333,979
U.S. Government Money Market Fund		—		—		1,249,047,177		—		1,249,047,177
Liabilities
Nova Fund		—		—		—		92,328		92,328
S&P 500 Fund		—		—		—		34,683		34,683
Inverse S&P 500 Strategy Fund		—		—		—		—		—
NASDAQ-100® Fund		—		—		—		216,608		216,608
Inverse NASDAQ-100® Strategy Fund		—		—		—		—		—
Mid-Cap 1.5x Strategy Fund		—		—		—		—		—
Inverse Mid-Cap Strategy Fund		—		—		—		9,556		9,556
Russell 2000® 1.5x Strategy Fund		—		—		—		13,161		13,161
Russell 2000® Fund		—		—		—		3,739		3,739
Inverse Russell 2000® Strategy Fund		—		983		—		93,279		94,262
S&P 500 Pure Growth Fund		—		—		—		—		—
S&P 500 Pure Value Fund		—		—		—		—		—
S&P MidCap 400 Pure Growth Fund		—		—		—		—		—
S&P MidCap 400 Pure Value Fund		—		—		—		—		—
S&P SmallCap 600 Pure Growth Fund		—		—		—		—		—
S&P SmallCap 600 Pure Value Fund		—		—		—		—		—
Europe 1.25x Strategy Fund		—		—		—		—		—
Japan 2x Strategy Fund		—		—		—		—		—
Strengthening Dollar 2x Strategy Fund		—		1,788,415		—		471,039		2,259,454
Weakening Dollar 2x Strategy Fund		—		—		—		—		—
Real Estate Fund		—		—		—		—		—
Government Long Bond 1.2x Strategy Fund		—		—		—		—		—
Inverse Government Long Bond Strategy Fund		429,174,752		—		—		—		429,174,752
High Yield Strategy Fund		—		—		—		—		—
Inverse High Yield Strategy Fund		—		86,853		—		218,932		305,785
U.S. Government Money Market Fund		—		—		—		—		—

* Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

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6

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective March 31, 2010. This update applies to the Funds’ disclosures about transfers in and out of all Levels of the fair value hierarchy on a gross basis and the reasons for the transfers, as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy. Effective interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

At the period ended September 30, 2010, there were no securities transferred from Level 1 to Level 2 or from Level 2 to Level 1.

9.    Securities Transactions

For the period ended September 30, 2010, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

					Inverse				Inverse				Inverse
	Nova		S&P 500		S&P 500		NASDAQ-100®		NASDAQ-100®		Mid-Cap 1.5x		Mid-Cap
	Fund		Fund		Strategy Fund		Fund		Strategy Fund		Strategy Fund		Strategy Fund
Purchases	$	19,160,380	$	141,615,089	$	—	$	96,091,370	$	—	$	12,048,783	$	—
Sales		42,339,366		171,134,012		—		164,207,823		—		21,350,534		—
					Inverse
	Russell				Russell 2000®		S&P 500		S&P 500		S&P MidCap		S&P MidCap
	2000® 1.5x		Russell 2000®		Strategy		Pure Growth		Pure Value		400 Pure		400 Pure
	Strategy Fund		Fund		Fund		Fund		Fund		Growth Fund		Value Fund
Purchases	$	13,279,574	$	18,862,314	$	—	$	171,288,378	$	143,160,796	$	154,927,470	$	137,121,027
Sales		13,879,004		20,620,255		—		130,553,148		282,558,702		171,000,273		276,365,515
	S&P SmallCap		S&P SmallCap						Strengthening		Weakening		Real
	600 Pure		600 Pure		Europe 1.25x		Japan 2x		Dollar 2x		Dollar 2x		Estate
	Growth Fund		Value Fund		Strategy Fund		Strategy Fund		Strategy Fund		Strategy Fund		Fund
Purchases	$	121,386,976	$	318,043,070	$	46,336,868	$	—	$	—	$	—	$	112,656,777
Sales		118,955,240		468,775,538		35,692,999		—		—		—		96,194,291
	Government		Inverse						U.S.
	Long Bond		Government				Inverse		Government
	1.2x Strategy		Long Bond		High Yield		High Yield		Money Market
	Fund		Strategy Fund		Strategy Fund		Strategy Fund		Fund
Purchases	$	1,041,283,862	$	1,802,945,080	$	—	$	—	$	—
Sales		1,222,643,999		2,037,032,897		—		—		—

10.    Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33 1/3% of a Fund’s net assets, 33 1/3% of a Fund’s assets held by the Custodian or 33 1/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. On September 30, 2010, the Real Estate Fund borrowed $499,000 under this agreement. As of and for the period ended September 30, 2010, the Funds did not have any other borrowings under this agreement.

11.    Pending Litigation

In March, 2010, an action was filed against PADCO Advisors, Inc. (hereinafter, the “Manager”), Rydex Distributors, Inc. (hereinafter, the “Distributor”), and Rydex Series Funds (hereinafter, the “Trust”) and certain trustees and officers of the Trust in federal district court in San Francisco, California. The action seeks class action status on behalf of purchasers of shares in a series of the Trust, the Rydex Inverse Government Long Bond Strategy Fund (the “Fund”) during a particular time period. The action asserts claims under provisions of the federal securities laws, alleging that certain registration statements of the Trust contained negligent misrepresentations and omissions with respect to certain risks associated with investment in the Fund, the suitability of the Fund and differences between performance of the Fund’s shares over time and that of its reference benchmark. The action also asserts a claim seeking to hold the Manager and the individual trustee defendants liable as control persons of the Trust. The action seeks unspecified damages and interest thereon as well as an award to the plaintiffs and putative class of attorney’s fees and litigation expenses. The Manager, the Trust and the other defendants believe the claims asserted to be without merit and intend to actively defend against them.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)

12.    Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors, LLC (formerly PADCO Advisors, Inc.), the Funds’ investment adviser (the “Investment Adviser”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Adviser (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction is not expected to result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreements with the Investment Advisers and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

13.    Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

14.    New Accounting Pronouncements

Effective March 31, 2010, the Funds adopted the Financial Accounting Standards Board ASU 2010-06, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements, which are reflected in Note 8.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    247

8

OTHER INFORMATION (Unaudited)

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 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended March 31 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Proxy Results

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds voted on whether to approve a new investment advisory agreement between Rydex Series Funds and Rydex Advisors, LLC. A description of the number of shares voted is as follows:

	Shares		Shares		Shares
Fund	For		Against		Abstained
Nova Fund		1,810,088		127,147		176,647
S&P 500 Fund		2,495,983		144,647		202,257
Inverse S&P 500 Strategy Fund		3,668,542		119,597		189,556
NASDAQ-100® Fund		23,306,629		1,052,468		1,440,516
Inverse NASDAQ-100® Strategy Fund		956,056		53,324		111,179
Mid-Cap 1.5x Strategy Fund		517,565		16,927		38,650
Inverse Mid-Cap Strategy Fund		75,549		3,964		2,996
Russell 2000® 1.5x Strategy Fund		551,109		32,453		48,531
Russell 2000® Fund		359,077		11,040		28,294
Inverse Russell 2000® Strategy Fund		365,386		21,148		47,623
S&P 500 Pure Growth Fund		475,707		6,669		102,186
S&P 500 Pure Value Fund		1,023,464		2,052		7,561
S&P MidCap 400 Pure Growth Fund		701,670		9,742		29,635
S&P MidCap 400 Pure Value Fund		4,157,070		43,266		76,143
S&P SmallCap 600 Pure Growth Fund		567,124		24,666		35,141
S&P SmallCap 600 Pure Value Fund		6,043,628		79,573		96,873
Europe 1.25x Strategy Fund		364,548		3,994		38,975
Japan 2x Strategy Fund		237,643		4,614		14,385
Strengthening Dollar 2x Strategy Fund		3,235,344		156,410		255,265
Weakening Dollar 2x Strategy Fund		1,237,618		52,031		257,960
Real Estate Fund		603,680		26,235		63,781
Government Long Bond 1.2x Strategy Fund		4,783,300		177,769		431,692
Inverse Government Long Bond Strategy Fund		18,144,709		938,482		2,255,175
High Yield Strategy Fund		704,161		25,598		74,786
Inverse High Yield Strategy Fund		429,671		16,815		43,981
U.S. Government Money Market Fund		739,824,428		32,303,169		37,666,769

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OTHER INFORMATION (Unaudited) (concluded)

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds also voted on whether to approve a change to a fundamental investment policy on borrowing money, consistent with applicable law. A description of the number of shares voted is as follows:

	Shares		Shares		Shares
Fund	For		Against		Abstained
Nova Fund		1,783,863		169,069		160,949
S&P 500 Fund		2,457,104		166,527		219,259
Inverse S&P 500 Strategy Fund		3,588,551		199,966		189,177
NASDAQ-100® Fund		22,618,650		1,706,701		1,474,262
Inverse NASDAQ-100® Strategy Fund		910,058		89,707		120,796
Mid-Cap 1.5x Strategy Fund		507,912		25,468		39,759
Inverse Mid-Cap Strategy Fund		69,061		8,226		5,222
Russell 2000® 1.5x Strategy Fund		545,997		36,748		49,349
Russell 2000® Fund		352,190		19,445		26,774
Inverse Russell 2000® Strategy Fund		358,250		28,242		47,667
S&P 500 Pure Growth Fund		467,917		14,526		102,117
S&P 500 Pure Value Fund		1,020,491		5,266		7,321
S&P MidCap 400 Pure Growth Fund		695,593		15,842		29,611
S&P MidCap 400 Pure Value Fund		4,142,497		55,349		78,633
S&P SmallCap 600 Pure Growth Fund		564,067		28,245		34,619
S&P SmallCap 600 Pure Value Fund		6,008,752		102,630		108,688
Europe 1.25x Strategy Fund		338,387		28,569		40,557
Japan 2x Strategy Fund		233,898		7,532		15,211
Strengthening Dollar 2x Strategy Fund		3,093,846		291,188		261,985
Weakening Dollar 2x Strategy Fund		1,160,242		122,015		265,354
Real Estate Fund		580,952		45,664		67,079
Government Long Bond 1.2x Strategy Fund		4,508,573		431,683		452,501
Inverse Government Long Bond Strategy Fund		17,585,082		1,459,928		2,293,352
High Yield Strategy Fund		698,699		32,603		73,243
Inverse High Yield Strategy Fund		420,660		26,349		43,456
U.S. Government Money Market Fund		710,063,888		55,098,706		44,631,764

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and 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.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds – 1997	144
Trustee, Chairman of the	Rydex Variable Trust – 1998
Board (1940)	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds – 1993	144
Trustee (1945)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds – 1995	144
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
Werner E. Keller	Rydex Series Funds – 2005	144
Trustee (1940)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	144
Trustee (1960)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds – 1997	144
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.
Roger Somers	Rydex Series Funds – 1993	144
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

250    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	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); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nick Bonos* Vice President and Treasurer (1963)	Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

* Officers of the Funds 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 Rydex Investments.

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SEPTEMBER 30, 2010

RYDEX SERIES FUNDS SEMI - ANNUAL REPORT
SECTOR FUNDS

BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
CONSUMER PRODUCTS FUND
ELECTRONICS FUND
ENERGY FUND
ENERGY SERVICES FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
INTERNET FUND
LEISURE FUND
PRECIOUS METALS FUND
RETAILING FUND
TECHNOLOGY FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
UTILITIES FUND

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, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS    2

ABOUT SHAREHOLDERS’ FUND EXPENSES     4

BANKING FUND     9

BASIC MATERIALS FUND   15

BIOTECHNOLOGY FUND   22

CONSUMER PRODUCTS FUND   28

ELECTRONICS FUND   34

ENERGY FUND   40

ENERGY SERVICES FUND   47

FINANCIAL SERVICES FUND   53

HEALTH CARE FUND   60

INTERNET FUND   67

LEISURE FUND   73

PRECIOUS METALS FUND   80

RETAILING FUND   87

TECHNOLOGY FUND   93

TELECOMMUNICATIONS FUND 100

TRANSPORTATION FUND 106

UTILITIES FUND 112

NOTES TO FINANCIAL STATEMENTS 118

OTHER INFORMATION 123

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS 125

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

Uncertainty over the strength of the U.S. economic recovery and what steps the Federal Reserve might take, if any, to deal with the situation highlighted the six months ending September 30. Stocks bounced back in the July-September period from losses in the second quarter, based partly on relief that the U.S. may be dealing with a prolonged period of slow growth rather than a sharp economic contraction.

The U.S. economy has been out of recession since July 2009, according to a September report from the National Bureau of Economic Research, although employment, income expectations and existing home sales have yet to rebound. Stocks are now roughly where they were six months ago.

U.S. GDP in the second quarter was 1.7%, widely viewed to be insufficient to move the unemployment rate below its current 9.6% before the end of 2010, and significantly lower than the 3.7% GDP in the first quarter. Economists said consumers are not spending at a rate to cause companies to ramp up production, and thus hiring, with confidence. By late September, many investors were widely anticipating that the Federal Reserve, in response to tepid growth, was prepared to start another round of quantitative easing—bond purchases designed to push down long-term interest rates and kick-start private borrowing.

That prospect was welcomed by investors, who sent equities higher in September, the S&P 500^® Index* having its best September performance since 1939. For the third quarter, U.S. equity indices were up between 10-15% compared with drops of from 1-3% for the past six months. The technology sector was the main contributor to quarterly performance in the S&P 500 and the Russell 2000^® Index, as growth style stocks outperformed value in the third quarter by three percentage points. Emerging markets continued to outperform, with investors continuing to pour money into emerging markets equities funds—$50 billion so far in 2010. Emerging markets are being viewed as less risky than in the recent past, particularly since nations in that sector are not confronting the fiscal debt issues facing many countries in the developed world, and are enjoying healthy economic growth.

Corporations continued to borrow aggressively, based on investor demand for bonds and low interest rates, driving hefty investment-grade bond sales as well as sales of high-yield bonds (where issuance through the third quarter has already surpassed the previous annual record). Various bond indices were up both for the third quarter and six months, led by indices for U.S. Government bond prices and corporate high yield bonds. The expectation of quantitative easing also lifted Treasury prices, despite concerns of a building price bubble in bonds. The Bank of America U.S. Government Index was up almost 3% for the third quarter, while the yield on the benchmark 10-year note closed out September at about 2.5%, down from its 2010 peak of just above 4% in April. U.S. debt also benefited as a safe haven from resurgent worries about the economic health of European nations, including more recently Ireland and Portugal.

Investors have also been flocking to gold, driving the price of an ounce of the metal to a non-inflation-adjusted record of around $1,300. Economists said gold’s appeal was both as a hedge against further financial market instability and to assuage investors worried about the inflationary impact of additional Fed easing and massive levels of government debt. Efforts by central banks around the world to boost their economies by keeping their currencies weaker, thus helping exports, may also be contributing to the rise in the price of gold, which is attractive as an alternative store of value. Continuing economic sluggishness in the U.S. caused the dollar to weaken against the euro and yen throughout the summer, as analysts said the economies behind those currencies are in something of a standoff over which has the worst outlook. The third quarter was good for other commodities, in part a response to strong demand in China, crop failures in Russia and the potential for further monetary easing. Grain prices began to fall late in the quarter, as high U.S. yields were expected to offset concerns about shortages in some crops like wheat. High inventory and slack demand combined to keep the price of a barrel of oil stuck in a narrow range, although it traded toward the high end ($82) of the range by September.

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1

LETTER TO OUR SHAREHOLDERS (concluded)

In contrast to the second quarter, when worries about European sovereign debt and a possible double-dip recession in the U.S. loomed large, stocks in countries around the world had strong gains in the third quarter. The MSCI EAFE Index* was up 15% for the third quarter and the MSCI EAFE Emerging Markets Index* was up 18%. The latter index was among the best-performing indices for the past six months, up 6%. Markets in Southeast Asia, including Indonesia and Philippines, were at all-time highs, while India and South Korea also flirted with record highs. The domestic stock market of China, which this year is expected to overtake Japan as the world’s second-largest economy, pared its loss for the year, gaining 11% in the third quarter, as investors think the government may be reducing its efforts to rein in the economy. The STOXX 50^®* Index also offset year-to-date losses with a 7% rise in the third quarter, despite a weak outlook issued by the European Central Bank. The Nikkei -225 Stock Average Index*, off 11% for the year, rose 6% in September, helped in part by foreign exchange market intervention designed to hold down the value of the yen.

Rydex|SGI has a full lineup of fundamental alpha, target beta and alternative investment products designed to provide investors with the tools needed to participate in all types of markets and market environments. Contact us if you wish to learn more, and thanks for the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500) – a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Nikkei-225 Stock Average Index – a price-weighted index of 225 blue-chip companies traded on the Tokyo Stock Exchange.

MSCI EAFE Index (Europe, Australasia, Far East) – a market-capitalization index designed to measure equity market performance in developed markets, excluding the U.S. & Canada. Consists in 2010 of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

MSCI EAFE Emerging Markets – a market-capitalization index designed to measure equity market performance in emerging markets. Consists in 2010 of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The STOXX 50 Index – Europe’s leading Blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The STOXX 50 Index is licensed to financial institutions to serve as underlying for a wide range of investment products such as Exchange Traded Funds (ETF), Futures and Options, and structured products worldwide.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    3

2

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and 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 investors understand the ongoing costs (in dollars) of investing in a 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, 2010 and ending September 30, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Certain retirement plans such as IRA, SEP, Roth IRA, 403(b), and Rydex | SGI prototype money purchase plan and profit sharing accounts are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found 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.

4    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

						Beginning		Ending		Expenses
	Expense		Fund			Account Value		Account Value		Paid During
	Ratio1		Return			March 31, 2010		September 30, 2010		Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class		1.38%		(11.08%	)		$1,000.00		$    889.22		$   6.54
Advisor Class		1.88%		(11.35%	)		1,000.00		886.51		8.89
A-Class		1.64%		(11.18%	)		1,000.00		888.21		7.76
C-Class		2.38%		(11.51%	)		1,000.00		884.86		11.25
Basic Materials Fund
Investor Class		1.37%		4.10%			1,000.00		1,040.98		7.01
Advisor Class		1.88%		3.86%			1,000.00		1,038.63		9.61
A-Class		1.63%		3.96%			1,000.00		1,039.65		8.33
C-Class		2.38%		3.57%			1,000.00		1,035.65		12.15
Biotechnology Fund
Investor Class		1.38%		(5.12%	)		1,000.00		948.79		6.74
Advisor Class		1.88%		(5.38%	)		1,000.00		946.22		9.17
A-Class		1.63%		(5.27%	)		1,000.00		947.27		7.96
C-Class		2.38%		(5.57%	)		1,000.00		944.33		11.60
Consumer Products Fund
Investor Class		1.37%		2.43%			1,000.00		1,024.32		6.95
Advisor Class		1.87%		2.24%			1,000.00		1,022.37		9.48
A-Class		1.62%		2.37%			1,000.00		1,023.72		8.22
C-Class		2.37%		2.00%			1,000.00		1,019.97		12.00
Electronics Fund
Investor Class		1.38%		(7.78%	)		1,000.00		922.22		6.65
Advisor Class		1.88%		(7.94%	)		1,000.00		920.62		9.05
A-Class		1.64%		(7.90%	)		1,000.00		921.01		7.90
C-Class		2.38%		(8.10%	)		1,000.00		919.00		11.45
Energy Fund
Investor Class		1.38%		(2.58%	)		1,000.00		974.17		6.83
Advisor Class		1.88%		(2.84%	)		1,000.00		971.60		9.29
A-Class		1.63%		(2.70%	)		1,000.00		973.01		8.06
C-Class		2.38%		(3.06%	)		1,000.00		969.43		11.75
Energy Services Fund
Investor Class		1.38%		(0.61%	)		1,000.00		993.93		6.90
Advisor Class		1.88%		(0.81%	)		1,000.00		991.85		9.39
A-Class		1.63%		(0.71%	)		1,000.00		992.95		8.14
C-Class		2.38%		(1.07%	)		1,000.00		989.29		11.87
Financial Services Fund
Investor Class		1.38%		(4.67%	)		1,000.00		953.35		6.76
Advisor Class		1.88%		(4.91%	)		1,000.00		950.90		9.19
A-Class		1.63%		(4.78%	)		1,000.00		952.20		7.98
C-Class		2.38%		(5.15%	)		1,000.00		948.54		11.63
Health Care Fund
Investor Class		1.38%		(4.05%	)		1,000.00		959.49		6.78
Advisor Class		1.88%		(4.24%	)		1,000.00		957.58		9.23
A-Class		1.62%		(4.12%	)		1,000.00		958.80		7.95
C-Class		2.38%		(4.38%	)		1,000.00		956.22		11.67

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

						Beginning		Ending		Expenses
	Expense		Fund			Account Value		Account Value		Paid During
	Ratio1		Return			March 31, 2010		September 30, 2010		Period2
Internet Fund
Investor Class		1.37%		7.59%			$1,000.00		$1,075.94		$   7.13
Advisor Class		1.88%		7.28%			1,000.00		1,072.78		9.77
A-Class		1.62%		7.45%			1,000.00		1,074.53		8.42
C-Class		2.38%		7.00%			1,000.00		1,069.95		12.35
Leisure Fund
Investor Class		1.38%		2.07%			1,000.00		1,020.74		6.99
Advisor Class		1.89%		1.78%			1,000.00		1,017.82		9.56
A-Class		1.63%		1.95%			1,000.00		1,019.52		8.25
C-Class		2.38%		1.51%			1,000.00		1,015.09		12.02
Precious Metals Fund
Investor Class		1.28%		21.64%			1,000.00		1,216.43		7.11
Advisor Class		1.78%		21.34%			1,000.00		1,213.41		9.88
A-Class		1.52%		21.47%			1,000.00		1,214.75		8.44
C-Class		2.27%		21.04%			1,000.00		1,210.36		12.58
Retailing Fund
Investor Class		1.39%		(0.31%	)		1,000.00		996.86		6.96
Advisor Class		1.88%		(0.49%	)		1,000.00		995.06		9.40
A-Class		1.63%		(0.32%	)		1,000.00		996.75		8.16
C-Class		2.38%		(0.60%	)		1,000.00		993.99		11.90
Technology Fund
Investor Class		1.38%		(0.25%	)		1,000.00		997.51		6.91
Advisor Class		1.88%		(0.44%	)		1,000.00		995.61		9.41
A-Class		1.63%		(0.44%	)		1,000.00		995.65		8.15
C-Class		2.38%		(0.63%	)		1,000.00		993.66		11.89
Telecommunications Fund
Investor Class		1.38%		4.59%			1,000.00		1,045.88		7.08
Advisor Class		1.87%		4.48%			1,000.00		1,044.82		9.59
A-Class		1.64%		4.44%			1,000.00		1,044.38		8.40
C-Class		2.38%		4.32%			1,000.00		1,043.20		12.19
Transportation Fund
Investor Class		1.38%		2.19%			1,000.00		1,021.86		6.99
Advisor Class		1.88%		2.00%			1,000.00		1,019.96		9.52
A-Class		1.64%		2.15%			1,000.00		1,021.46		8.31
C-Class		2.38%		1.83%			1,000.00		1,018.29		12.04
Utilities Fund
Investor Class		1.36%		6.57%			1,000.00		1,065.73		7.04
Advisor Class		1.87%		6.32%			1,000.00		1,063.25		9.67
A-Class		1.63%		6.44%			1,000.00		1,064.37		8.44
C-Class		2.38%		5.99%			1,000.00		1,059.88		12.29

6    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

					Beginning		Ending		Expenses
	Expense		Fund		Account Value		Account Value		Paid During
	Ratio1		Return		March 31, 2010		September 30, 2010		Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class		1.38%		5.00%		$1,000.00		$1,018.15		$   6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.64%		5.00%		1,000.00		1,016.85		8.29
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Basic Materials Fund
Investor Class		1.37%		5.00%		1,000.00		1,018.20		6.93
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Biotechnology Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Consumer Products Fund
Investor Class		1.37%		5.00%		1,000.00		1,018.20		6.93
Advisor Class		1.87%		5.00%		1,000.00		1,015.69		9.45
A-Class		1.62%		5.00%		1,000.00		1,016.95		8.19
C-Class		2.37%		5.00%		1,000.00		1,013.19		11.96
Electronics Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.64%		5.00%		1,000.00		1,016.85		8.29
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Energy Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Energy Services Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Financial Services Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Health Care Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.62%		5.00%		1,000.00		1,016.95		8.19
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

					Beginning		Ending		Expenses
	Expense		Fund		Account Value		Account Value		Paid During
	Ratio1		Return		March 31, 2010		September 30, 2010		Period2
Internet Fund
Investor Class		1.37%		5.00%		$1,000.00		$1,018.20		$  6.93
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.62%		5.00%		1,000.00		1,016.95		8.19
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Leisure Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.89%		5.00%		1,000.00		1,015.59		9.55
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Precious Metals Fund
Investor Class		1.28%		5.00%		1,000.00		1,018.65		6.48
Advisor Class		1.78%		5.00%		1,000.00		1,016.14		9.00
A-Class		1.52%		5.00%		1,000.00		1,017.45		7.69
C-Class		2.27%		5.00%		1,000.00		1,013.69		11.46
Retailing Fund
Investor Class		1.39%		5.00%		1,000.00		1,018.10		7.03
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Technology Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Telecommunications Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.87%		5.00%		1,000.00		1,015.69		9.45
A-Class		1.64%		5.00%		1,000.00		1,016.85		8.29
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Transportation Fund
Investor Class		1.38%		5.00%		1,000.00		1,018.15		6.98
Advisor Class		1.88%		5.00%		1,000.00		1,015.64		9.50
A-Class		1.64%		5.00%		1,000.00		1,016.85		8.29
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01
Utilities Fund
Investor Class		1.36%		5.00%		1,000.00		1,018.25		6.88
Advisor Class		1.87%		5.00%		1,000.00		1,015.69		9.45
A-Class		1.63%		5.00%		1,000.00		1,016.90		8.24
C-Class		2.38%		5.00%		1,000.00		1,013.14		12.01

1	Annualized
2	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 the number of days in the current fiscal year.
3	Actual cumulative return at net asset value for the period March 31, 2010 to September 30, 2010.

8    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

BANKING FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and savings and loan institutions.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Bank of New York Mellon Corp.	4.1	%
JPMorgan Chase & Co.	4.1	%
U.S. Bancorp	3.8	%
Wells Fargo & Co.	3.7	%
PNC Financial Services Group, Inc.	3.3	%
Bank of America Corp.	3.4	%
BB&T Corp.	2.8	%
SunTrust Banks, Inc.	2.8	%
Regions Financial Corp.	2.3	%
Fifth Third Bancorp	2.3	%
Top Ten Total	32.6	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    9

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  BANKING FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.2%
FINANCIALS - 99.2%
Bank of New York Mellon Corp.		15,881	$	414,971
JPMorgan Chase & Co.		10,872		413,897
U.S. Bancorp		18,118		391,710
Wells Fargo & Co.		14,960		375,944
PNC Financial Services Group, Inc.		6,678		346,654
Bank of America Corp.		26,417		346,327
BB&T Corp.		12,119		291,825
SunTrust Banks, Inc.		10,883		281,107
Regions Financial Corp.		32,146		233,701
Fifth Third Bancorp		19,296		232,131
M&T Bank Corp.		2,746		224,650
New York Community Bancorp, Inc.		12,839		208,633
KeyCorp		25,708		204,636
Itau Unibanco Holding S.A. ADR		8,317		201,105
Comerica, Inc.		5,344		198,530
Hudson City Bancorp, Inc.		15,774		193,390
Banco Bradesco S.A. ADR		9,457		192,734
ICICI Bank Ltd. ADR		3,850		191,923
Royal Bank of Canada		3,229		168,328
People’s United Financial, Inc.		12,610		165,065
HDFC Bank Ltd. ADR		890		164,089
Banco Santander Brasil S.A. ADR		11,515		158,562
Toronto-Dominion Bank		2,175		157,166
HSBC Holdings plc ADR		3,083		155,969
Huntington Bancshares, Inc.		27,355		155,103
Banco Santander S.A. ADR		12,006		151,996
Bank of Nova Scotia		2,850		151,905
Marshall & Ilsley Corp.		21,060		148,262
Zions Bancorporation		6,535		139,588
Barclays plc ADR		7,041		132,723
First Horizon National Corp.*		11,146		127,179
City National Corp.		2,381		126,360
East West Bancorp, Inc.		7,407		120,586
Associated Banc-Corp		9,015		118,908
TCF Financial Corp.		7,290		118,025
Cullen		2,187		117,814
First Niagara Financial Group, Inc.		9,856		114,822
FirstMerit Corp.		6,090		111,569
Bank of Hawaii Corp.		2,473		111,087
MGIC Investment Corp.*		12,011		110,862
Bank of Montreal		1,890		109,148

			MARKET
	SHARES		VALUE
Canadian Imperial Bank of Commerce		1,440	$	104,314
SVB Financial Group*		2,399		101,526
Fulton Financial Corp.		10,970		99,388
Washington Federal, Inc.		6,363		97,099
Prosperity Bancshares, Inc.		2,812		91,306
Astoria Financial Corp.		6,429		87,627
Iberiabank Corp.		1,740		86,965
Umpqua Holdings Corp.		7,612		86,320
Webster Financial Corp.		4,888		85,833
Cathay General Bancorp		6,755		80,317
Susquehanna Bancshares, Inc.		9,430		79,589
Glacier Bancorp, Inc.		5,330		77,818
Wintrust Financial Corp.		2,310		74,867
Radian Group, Inc.		9,520		74,446
PrivateBancorp, Inc. — Class A		6,133		69,855
Commerce Bancshares, Inc.		1,853		69,654
Signature Bank*		1,739		67,543
First Midwest Bancorp, Inc.		5,750		66,298
Credicorp Ltd.		570		64,923
Whitney Holding Corp.		7,645		62,460
Trustmark Corp.		2,854		62,046
CVB Financial Corp.		7,974		59,885
Wilmington Trust Corp.		6,525		58,595
Valley National Bancorp		4,251		54,838
BancorpSouth, Inc.		3,484		49,403
Westamerica Bancorporation		901		49,095
Total Financials				10,040,994
Total Common Stocks (Cost $6,985,815)				10,040,994
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10	$	51,760		51,760
Total Repurchase Agreement (Cost $51,760)				51,760
Total Investments - 99.7% (Cost $7,037,575)			$	10,092,754
Cash & Other Assets, Less Liabilities – 0.3%				27,471
Total Net Assets – 100.0%			$	10,120,225

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt
	plc — Public Limited Company

10    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

2

  BANKING FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	10,040,994
Repurchase agreement, at value		51,760
Total investments		10,092,754
Receivables:
Securities sold		2,614,557
Fund shares sold		596,279
Dividends		13,081
Total assets		13,316,671
Liabilities:
Payable for:
Fund shares redeemed		3,172,666
Management fees		7,582
Custodian fees		296
Transfer agent/maintenance fees		2,230
Distribution and service fees		3,048
Portfolio accounting fees		892
Other		9,732
Total liabilities		3,196,446
Net assets	$	10,120,225
Net assets consist of:
Paid in capital		35,935,968
Undistributed net investment income		46,023
Accumulated net realized loss on sale of investments		(28,916,945	)
Net unrealized appreciation in value of investments		3,055,179
Net assets		10,120,225
Investor Class:
Net assets	$	5,658,114
Capital shares outstanding		125,449
Net asset value per share		$45.10
Advisor Class:
Net assets	$	554,341
Capital shares outstanding		13,364
Net asset value per share		$41.48
A-Class:
Net assets	$	1,262,229
Capital shares outstanding		29,977
Net asset value per share		$42.11
Maximum offering price per share*		$44.21
C-Class:
Net assets	$	2,645,541
Capital shares outstanding		65,692
Net asset value per share		$40.27
Investments, at cost	$	6,985,815
Repurchase agreement, at cost		51,760
Total cost	$	7,037,575

STATEMENT OF
OPERATIONS (unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $4,486)	$	153,521
Interest		98
Total investment income		153,619
Expenses:
Management fees		82,556
Transfer agent and administrative fees		24,281
Distribution and Service Fees:
Advisor Class		2,674
A-Class		4,801
C-Class		19,619
Portfolio accounting fees		9,712
Trustees’ fees**		1,148
Miscellaneous		16,576
Total expenses		161,367
Net investment loss		(7,748	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(1,109,925	)
Net realized loss		(1,109,925	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(1,595,122	)
Net unrealized depreciation		(1,595,122	)
Net loss		(2,705,047	)
Net decrease in net assets resulting from operations	$	(2,712,795	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of section 2(a)(19) of the 1940 act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    11

  BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(7,748	)	$	53,770
Net realized gain (loss) during the period on investments		(1,109,925	)		7,119,068
Net unrealized appreciation (depreciation) during the period on investments		(1,595,122	)		2,483,173
Net increase (decrease) in net assets resulting from operations		(2,712,795	)		9,656,011
Distributions to shareholders from:
Net investment income
Investor Class		—			(161,108	)
Advisor Class		—			(40,030	)
A-Class		—			(51,784	)
C-Class		—			(168,412	)
Total distributions to shareholders		—			(421,334	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		62,510,141			111,135,030
Advisor Class		12,477,599			10,401,691
A-Class		4,650,594			8,328,262
C-Class		28,076,659			86,585,614
Distributions reinvested
Investor Class		—			158,316
Advisor Class		—			40,030
A-Class		—			51,338
C-Class		—			151,140
Cost of shares redeemed
Investor Class		(82,414,323	)		(114,422,177	)
Advisor Class		(12,514,061	)		(12,673,768	)
A-Class		(8,936,943	)		(3,498,143	)
C-Class		(30,635,911	)		(85,151,619	)
Net increase (decrease) from capital share transactions		(26,786,245	)		1,105,714
Net increase (decrease) in net assets		(29,499,040	)		10,340,391
Net assets:
Beginning of period		39,619,265			29,278,874
End of period	$	10,120,225		$	39,619,265
Undistributed net investment income at end of period	$	46,023		$	53,771
Capital share activity:
Shares sold
Investor Class		1,302,448			2,470,609
Advisor Class		275,377			268,841
A-Class		98,631			185,253
C-Class		667,537			2,198,885
Shares reinvested
Investor Class		—			3,650
Advisor Class		—			1,000
A-Class		—			1,266
C-Class		—			3,875
Shares redeemed
Investor Class		(1,696,215	)		(2,684,716	)
Advisor Class		(289,613	)		(324,898	)
A-Class		(203,249	)		(79,682	)
C-Class		(725,040	)		(2,150,261	)
Total capital share activity		(570,124	)		(106,178	)

12    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  BANKING FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$50.73			$32.62			$75.60			$110.30			$108.60			$101.70
Income (loss) from investment operations:
Net investment incomeb		.03			.28			1.30			2.50			2.00			1.60
Net gain (loss) on securities
(realized and unrealized)		(5.66	)		20.05			(42.98	)		(36.20	)		.50			6.90
Total from investment operations		(5.63	)		20.33			(41.68	)		(33.70	)		2.50			8.50
Less distributions:
Distributions from net investment income		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Total distributions		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Net asset value, end of period		$45.10			$50.73			$32.62			$75.60			$110.30			$108.60
Total Returnc		(11.08%	)		63.48%			(55.66%	)		(30.69%	)		2.24%			8.41%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,658			$26,340			$23,804			$7,035			$9,229			$8,713
Ratios to average net assets:
Net investment income		0.13%			0.67%			2.42%			2.59%			1.79%			1.48%
Total expenses		1.38%			1.38%			1.37%			1.37%			1.32%			1.34%
Portfolio turnover rate		424%			986%			1,055%			1,417%			954%			1,834%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$46.79			$30.36			$70.70			$103.90			$103.00			$97.20
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		.06			1.20			2.00			1.10			1.20
Net gain (loss) on securities
(realized and unrealized)		(5.24	)		18.59			(40.24	)		(34.20	)		.60			6.20
Total from investment operations		(5.31	)		18.65			(39.04	)		(32.20	)		1.70			7.40
Less distributions:
Distributions from net investment income		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Total distributions		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Net asset value, end of period		$41.48			$46.79			$30.36			$70.70			$103.90			$103.00
Total Returnc		(11.35%	)		62.66%			(55.70%	)		(31.14%	)		1.58%			7.66%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$554			$1,291			$2,509			$1,449			$1,836			$1,537
Ratios to average net assets:
Net investment income (loss)		(0.33%	)		0.17%			2.42%			2.32%			1.08%			1.20%
Total expenses		1.88%			1.88%			1.88%			1.85%			1.88%			1.84%
Portfolio turnover rate		424%			986%			1,055%			1,417%			954%			1,834%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    13

  BANKING FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$47.41			$30.67			$71.50			$104.70			$103.40			$97.20
Income (loss) from investment operations:
Net investment incomeb		.02			.02			1.30			2.00			1.70			1.40
Net gain (loss) on securities
(realized and unrealized)		(5.32	)		18.94			(40.83	)		(34.20	)		.40			6.40
Total from investment operations		(5.30	)		18.96			(39.53	)		(32.20	)		2.10			7.80
Less distributions:
Distributions from net investment income		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Total distributions		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Net asset value, end of period		$42.11			$47.41			$30.67			$71.50			$104.70			$103.40
Total Returnc		(11.18%	)		63.04%			(55.77%	)		(30.90%	)		1.96%			8.07%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,262			$6,381			$851			$547			$187			$97
Ratios to average net assets:
Net investment income		0.07%			0.06%			2.71%			2.33%			1.54%			1.40%
Total expenses		1.64%			1.63%			1.62%			1.55%			1.62%			1.62%
Portfolio turnover rate		424%			986%			1,055%			1,417%			954%			1,834%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010		d	2009		d	2008		d	2007		d	2006		d
Per Share Data
Net asset value, beginning of period		$45.51			$29.90			$69.50			$102.70			$102.00			$96.60
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.16	)		.90			1.60			.70			.60
Net gain (loss) on securities
(realized and unrealized)		(5.09	)		17.99			(39.20	)		(33.80	)		.80			6.40
Total from investment operations		(5.24	)		17.83			(38.30	)		(32.20	)		1.50			7.00
Less distributions:
Distributions from net investment income		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Total distributions		—			(2.22	)		(1.30	)		(1.00	)		(.80	)		(1.60	)
Net asset value, end of period		$40.27			$45.51			$29.90			$69.50			$102.70			$102.00
Total Returnc		(11.51%	)		60.86%			(55.64%	)		(31.51%	)		1.40%			7.29%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,646			$5,607			$2,114			$3,408			$3,180			$673
Ratios to average net assets:
Net investment income (loss)		(0.71%	)		(0.42%	)		1.82%			1.89%			0.63%			0.59%
Total expenses		2.38%			2.38%			2.40%			2.35%			2.37%			2.35%
Portfolio turnover rate		424%			986%			1,055%			1,417%			954%			1,834%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Per share amounts for the period:
	March 31, 2006 – April 19, 2009 have been restated to reflect a 1:10 reverse stock split effective April 20, 2009.

14    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

FUND PROFILE (Unaudited)

September 30, 2010

BASIC MATERIALS FUND

OBJECTIVE: Seeks to provide 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.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Potash Corporation of Saskatchewan, Inc.	2.9	%
Vale S.A. — Class B ADR	2.5	%
Freeport-McMoRan Copper & Gold, Inc. — Class B	2.5	%
E.I. du Pont de Nemours & Co.	2.5	%
Barrick Gold Corp.	2.5	%
Mosaic Co.	2.1	%
Southern Copper Co.	2.1	%
Dow Chemical Co.	2.1	%
Newmont Mining Co.	2.1	%
Praxair, Inc.	2.0	%
Top Ten Total	23.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    15

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  BASIC MATERIALS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
MATERIALS - 98.4%
Potash Corporation of Saskatchewan, Inc.		22,808	$	3,285,264
Vale S.A. — Class B ADR		97,154		3,038,006
Freeport-McMoRan Copper & Gold, Inc. — Class B		34,170		2,917,776
E. I. du Pont de Nemours & Co.		64,669		2,885,531
Barrick Gold Corp.		60,848		2,816,653
Mosaic Co.		42,376		2,490,014
Southern Copper Co.		70,680		2,482,282
Dow Chemical Co.		87,138		2,392,809
Newmont Mining Co.		37,524		2,356,881
Praxair, Inc.		25,618		2,312,281
Goldcorp, Inc.		53,109		2,311,304
Teck Resources Ltd. — Class B		55,269		2,274,872
Monsanto Co.		43,732		2,096,075
BHP Billiton Ltd. ADR		24,914		1,901,436
Air Products & Chemicals, Inc.		22,933		1,899,311
Agrium, Inc.		23,093		1,731,744
Ivanhoe Mines Ltd.*		72,748		1,703,031
Alcoa, Inc.		127,632		1,545,624
PPG Industries, Inc.		21,034		1,531,275
Kinross Gold Corp.		80,175		1,506,488
Ecolab, Inc.		29,311		1,487,241
Agnico-Eagle Mines Ltd.		20,494		1,455,689
Silver Wheaton Corp.*		53,126		1,415,809
Nucor Corp.		36,568		1,396,897
CF Industries Holdings, Inc.		13,844		1,322,102
Cliffs Natural Resources, Inc.		20,681		1,321,930
Eldorado Gold Corp.		70,280		1,299,477
ArcelorMittal		39,063		1,288,298
Rio Tinto plc ADR		21,786		1,279,492
Yamana Gold, Inc.		109,273		1,245,712
Cia Siderurgica Nacional S.A. ADR		70,283		1,241,901
Lubrizol Corp.		11,417		1,209,860
Sigma-Aldrich Corp.		19,922		1,202,890
International Paper Co.		54,821		1,192,357
Sherwin-Williams Co.		15,860		1,191,720
POSCO ADR		10,263		1,169,777
Newcrest Mining, Ltd. ADR		29,435		1,133,248
Mechel ADR		45,090		1,122,741
Randgold Resources Ltd. ADR		10,799		1,095,667
AngloGold Ashanti Ltd. ADR		23,347		1,079,565
Cia de Minas Buenaventura S.A. ADR		23,885		1,079,124
Gerdau S.A. ADR		78,990		1,075,054
Gold Fields Ltd. ADR		70,165		1,071,420
Eastman Chemical Co.		14,417		1,066,858
United States Steel Co.		24,123		1,057,552
Airgas, Inc.		15,132		1,028,219
IAMGOLD Corp.		58,015		1,027,446
Celanese Corp. — Class A		31,452		1,009,609

			MARKET
	SHARES		VALUE
Ball Corp.		16,972	$	998,803
Harmony Gold Mining Company Ltd. ADR		85,905		969,867
FMC Corp.		14,120		965,949
Crown Holdings, Inc.*		33,337		955,438
Walter Energy, Inc.		11,560		939,712
Fibria Celulose S.A. ADR*		53,954		932,865
Pactiv Corp.*		27,843		918,262
Albemarle Corp.		19,494		912,514
Sterlite Industries India Ltd. ADR		59,844		896,463
Owens-Illinois, Inc.*		30,868		866,156
MeadWestvaco Corp.		35,196		858,078
Allegheny Technologies, Inc.		18,378		853,658
International Flavors & Fragrances, Inc.		17,277		838,280
Cemex SAB de CV ADR*		97,997		832,974
Scotts Miracle-Gro Co. — Class A		15,894		822,197
Nalco Holding Co.		32,604		821,947
Sealed Air Corp.		35,998		809,235
Bemis Company, Inc.		25,412		806,831
Vulcan Materials Co.		21,815		805,410
Titanium Metals Corp.*		39,665		791,713
Huntsman Corp.		67,748		783,167
Sonoco Products Co.		23,329		780,122
Cytec Industries, Inc.		13,745		774,943
Ashland, Inc.		15,715		766,421
Pan American Silver Corp.		25,826		764,191
Steel Dynamics, Inc.		52,890		746,278
Domtar Corp.		11,440		738,795
Valspar Corp.		22,952		731,021
Reliance Steel & Aluminum Co.		17,414		723,203
Martin Marietta Materials, Inc.		9,309		716,514
Rockwood Holdings, Inc.*		22,050		693,914
RPM International, Inc.		34,332		683,893
Silgan Holdings, Inc.		21,060		667,602
Cabot Corp.		20,456		666,252
Compass Minerals International, Inc.		8,529		653,492
WR Grace & Co.*		23,347		652,315
Packaging Corporation of America		27,881		646,003
Intrepid Potash, Inc.*		24,087		627,948
Royal Gold, Inc.		12,544		625,193
Solutia, Inc.*		37,380		598,828
NewMarket Corp.		5,050		574,084
Rock-Tenn Co. — Class A		11,214		558,569
Temple-Inland, Inc.		28,446		530,802
AK Steel Holding Corp.		37,703		520,678
Commercial Metals Co.		35,916		520,423
Olin Corp.		25,809		520,309
Carpenter Technology Corp.		14,246		480,233
Total Materials				114,387,857
FINANCIALS - 1.1%
Weyerhaeuser Co.		83,971		1,323,383
Total Common Stocks
(Cost $89,790,791)				115,711,240

16    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  BASIC MATERIALS FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 - 0.7%
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/10	$	832,539	$	832,539
Total Repurchase Agreement (Cost $832,539)				832,539
Total Investments - 100.2% (Cost $90,623,330)			$	116,543,779
Liabilities, Less Cash & Other Assets – (0.2)%				(221,658	)
Total Net Assets – 100.0%			$	116,322,121

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    17

  BASIC MATERIALS FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	115,711,240
Repurchase agreement, at value		832,539
Total investments		116,543,779
Cash		18,343
Receivables:
Fund shares sold		4,516,192
Dividends		72,452
Total assets		121,150,766
Liabilities:
Payable for:
Securities purchased		3,955,104
Fund shares redeemed		743,400
Management fees		55,128
Custodian fees		2,142
Transfer agent/maintenance fees		16,214
Distribution and service fees		11,009
Portfolio accounting fees		6,486
Other		39,162
Total liabilities		4,828,645
Net assets	$	116,322,121
Net assets consist of:
Paid in capital		126,448,250
Undistributed net investment income		292,156
Accumulated net realized loss on sale of investments		(36,338,734	)
Net unrealized appreciation in value of investments		25,920,449
Net assets		116,322,121
Investor Class:
Net assets	$	89,640,639
Capital shares outstanding		1,928,431
Net asset value per share		$46.48
Advisor Class:
Net assets	$	8,382,891
Capital shares outstanding		191,271
Net asset value per share		$43.83
A-Class:
Net assets	$	8,288,992
Capital shares outstanding		185,915
Net asset value per share		$44.58
Maximum offering price per share*		$46.80
C-Class:
Net assets	$	10,009,599
Capital shares outstanding		237,628
Net asset value per share		$42.12
Investments, at cost	$	89,790,791
Repurchase agreement, at cost		832,539
Total cost	$	90,623,330

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $4,956)	$	503,546
Interest		318
Total investment income		503,864
Expenses:
Management fees		279,018
Transfer agent and administrative fees		82,064
Distribution and Service Fees:
Advisor Class		14,410
A-Class		9,417
C-Class		41,905
Portfolio accounting fees		32,825
Trustees’ fees**		2,358
Miscellaneous		54,668
Total expenses		516,665
Net investment loss		(12,801	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		891,280
Net realized gain		891,280
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(26,719	)
Net unrealized depreciation		(26,719	)
Net realized and unrealized gain		864,561
Net increase in net assets resulting from operations	$	851,760

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

18    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(12,801	)	$	418,960
Net realized gain during the period on investments		891,280			2,711,773
Net unrealized appreciation (depreciation) during the period on investments		(26,719	)		18,662,144
Net increase in net assets resulting from operations		851,760			21,792,877
Distributions to shareholders from:
Net investment income
Investor Class		—			(236,906	)
Advisor Class		—			(29,177	)
A-Class		—			(18,345	)
C-Class		—			(26,067	)
Total distributions to shareholders		—			(310,495	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		155,339,934			327,399,075
Advisor Class		14,938,309			35,932,170
A-Class		1,779,586			10,740,343
C-Class		62,552,996			71,801,108
Distributions reinvested
Investor Class		—			220,842
Advisor Class		—			20,624
A-Class		—			16,149
C-Class		—			24,977
Cost of shares redeemed
Investor Class		(111,163,707	)		(395,861,863	)
Advisor Class		(15,101,585	)		(34,027,602	)
A-Class		(1,923,019	)		(8,721,203	)
C-Class		(61,618,073	)		(69,843,154	)
Net increase (decrease) from capital share transactions		44,804,441			(62,298,534	)
Net increase (decrease) in net assets		45,656,201			(40,816,152	)
Net assets:
Beginning of period		70,665,920			111,482,072
End of period	$	116,322,121		$	70,665,920
Undistributed net investment income at end of period	$	292,156		$	304,957
Capital share activity:
Shares sold
Investor Class		3,526,568			8,763,665
Advisor Class		358,222			993,888
A-Class		42,238			293,045
C-Class		1,579,849			2,030,076
Shares reinvested
Investor Class		—			5,201
Advisor Class		—			513
A-Class		—			396
C-Class		—			644
Shares redeemed
Investor Class		(2,596,538	)		(11,371,550	)
Advisor Class		(375,448	)		(966,463	)
A-Class		(46,587	)		(254,082	)
C-Class		(1,566,569	)		(1,965,846	)
Total capital share activity		921,735			(2,470,513	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    19

1

  BASIC MATERIALS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$44.65			$27.43			$50.49			$42.25			$35.23			$30.66
Income (loss) from investment operations:
Net investment incomeb		.04			.24			.20			.15			.41			.32
Net gain (loss) on securities (realized and unrealized)		1.79			17.07			(22.77	)		8.18			6.91			4.44
Total from investment operations		1.83			17.31			(22.57	)		8.33			7.32			4.76
Less distributions:
Distributions from net investment income		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Total distributions		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Net asset value, end of period		$46.48			$44.65			$27.43			$50.49			$42.25			$35.23
Total Returnc		4.10%			63.12%			(44.54%	)		19.71%			20.86%			15.60%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$89,641			$44,582			$98,767			$120,870			$68,862			$23,630
Ratios to average net assets:
Net investment income		0.17%			0.65%			0.46%			0.31%			1.09%			1.04%
Total expenses		1.37%			1.39%			1.37%			1.37%			1.36%			1.35%
Portfolio turnover rate		184%			455%			288%			225%			442%			826%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$42.20			$26.06			$48.27			$40.61			$34.03			$29.78
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		.03			.05			(.11	)		.26			.16
Net gain (loss) on securities (realized and unrealized)		1.70			16.20			(21.77	)		7.86			6.62			4.28
Total from investment operations		1.63			16.23			(21.72	)		7.75			6.88			4.44
Less distributions:
Distributions from net investment income		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Total distributions		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Net asset value, end of period		$43.83			$42.20			$26.06			$48.27			$40.61			$34.03
Total Returnc		3.86%			62.30%			(44.83%	)		19.08%			20.30%			14.98%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,383			$8,799			$4,705			$11,899			$15,974			$7,619
Ratios to average net assets:
Net investment income (loss)		(0.35%	)		0.07%			0.13%			(0.25%	)		0.72%			0.55%
Total expenses		1.88%			1.89%			1.88%			1.87%			1.87%			1.85%
Portfolio turnover rate		184%			455%			288%			225%			442%			826%

20    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

2

  BASIC MATERIALS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$42.88			$26.41			$48.80			$40.92			$34.19			$29.84
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.15			.12			.03			.33			.29
Net gain (loss) on securities (realized and unrealized)		1.73			16.41			(22.02	)		7.94			6.70			4.25
Total from investment operations		1.70			16.56			(21.90	)		7.97			7.03			4.54
Less distributions:
Distributions from net investment income		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Total distributions		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Net asset value, end of period		$44.58			$42.88			$26.41			$48.80			$40.92			$34.19
Total Returnc		3.96%			62.72%			(44.71%	)		19.47%			20.65%			15.29%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,289			$8,159			$3,986			$6,985			$2,076			$659
Ratios to average net assets:
Net investment income (loss)		(0.14%	)		0.40%			0.30%			0.07%			0.92%			0.97%
Total expenses		1.63%			1.65%			1.63%			1.62%			1.62%			1.63%
Portfolio turnover rate		184%			455%			288%			225%			442%			826%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$40.67			$25.24			$47.02			$39.76			$33.48			$29.44
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.13	)		(.18	)		(.28	)		.04			.03
Net gain (loss) on securities (realized and unrealized)		1.61			15.65			(21.11	)		7.63			6.54			4.20
Total from investment operations		1.45			15.52			(21.29	)		7.35			6.58			4.23
Less distributions:
Distributions from net investment income		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Total distributions		—			(.09	)		(.49	)		(.09	)		(.30	)		(.19	)
Net asset value, end of period		$42.12			$40.67			$25.24			$47.02			$39.76			$33.48
Total Returnc		3.57%			61.51%			(45.11%	)		18.48%			19.74%			14.44%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,010			$9,125			$4,024			$12,725			$7,017			$6,041
Ratios to average net assets:
Net investment income (loss)		(0.82%	)		(0.37%	)		(0.46%	)		(0.63%	)		0.11%			0.11%
Total expenses		2.38%			2.40%			2.38%			2.37%			2.37%			2.36%
Portfolio turnover rate		184%			455%			288%			225%			442%			826%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    21

3

FUND PROFILE (Unaudited)

September 30, 2010

BIOTECHNOLOGY FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic or other biological engineering, and in the design, manufacture, or sale of related biotechnology products or services.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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.	11.5	%
Gilead Sciences, Inc.	8.9	%
Celgene Corp.	8.3	%
Genzyme Corp.	8.0	%
Biogen Idec, Inc.	6.5	%
Vertex Pharmaceuticals, Inc.	4.0	%
Dendreon Corp.	3.9	%
Human Genome Sciences, Inc.	3.8	%
Alexion Pharmaceuticals, Inc.	3.7	%
Cephalon, Inc.	3.5	%
Top Ten Total	62.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

22    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  BIOTECHNOLOGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.4%
HEALTH CARE - 99.4%
Amgen, Inc.*		118,235	$	6,515,932
Gilead Sciences, Inc.*		141,402		5,035,325
Celgene Corp.*		82,198		4,735,427
Genzyme Corp.*		64,966		4,598,943
Biogen Idec, Inc.*		66,061		3,707,343
Vertex Pharmaceuticals, Inc.*		67,116		2,320,200
Dendreon Corp.*		54,147		2,229,773
Human Genome Sciences, Inc.*		73,046		2,176,040
Alexion Pharmaceuticals, Inc.*		33,020		2,125,167
Cephalon, Inc.*		32,218		2,011,692
Amylin Pharmaceuticals, Inc.*		84,062		1,752,693
United Therapeutics Corp.*		28,969		1,622,554
Talecris Biotherapeutics Holdings Corp.*		67,972		1,555,199
Incyte Corporation Ltd.*		86,250		1,379,138
Onyx Pharmaceuticals, Inc.*		46,476		1,226,037
Myriad Genetics, Inc.*		67,557		1,108,610
BioMarin Pharmaceutical, Inc.*		49,121		1,097,854
Savient Pharmaceuticals, Inc.*		43,485		994,502
InterMune, Inc.*		68,190		928,748
Regeneron Pharmaceuticals, Inc.*		31,622		866,443
Acorda Therapeutics, Inc.*		24,091		795,485
MannKind Corp.*		115,330		779,631
Alkermes, Inc.*		51,156		749,435
Cubist Pharmaceuticals, Inc.*		29,810		697,256
PDL BioPharma, Inc.		132,085		694,767
Medivation, Inc.*		53,370		693,810
Isis Pharmaceuticals, Inc.*		72,225		606,690
Theravance, Inc.*		28,100		564,810
Seattle Genetics, Inc.*		33,947		527,197
Cepheid, Inc.*		24,255		453,811
Enzon Pharmaceuticals, Inc.*		32,551		366,199
Pharmasset, Inc.*		12,220		360,490
Martek Biosciences Corp.*		14,925		337,753
AMAG Pharmaceuticals, Inc.*		19,535		336,197
Geron Corp.*		56,638		313,208
Allos Therapeutics, Inc.*		58,525		276,238
Immunogen, Inc.*		40,310		252,744
BioCryst Pharmaceuticals, Inc.*		38,876		192,047
Total Health Care				56,985,388
Total Common Stocks (Cost $26,854,906)				56,985,388

			MARKET
	SHARES		VALUE
REPURCHASE AGREEMENT ††,1 - 0.4%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10	$	255,648	$	255,648
Total Repurchase Agreement (Cost $255,648)				255,648
Total Investments - 99.8% (Cost $27,110,554)			$	57,241,036
Cash & Other Assets, Less Liabilities – 0.2%				129,611
Total Net Assets – 100.0%			$	57,370,647

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    23

  BIOTECHNOLOGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	56,985,388
Repurchase agreement, at value		255,648
Total investments		57,241,036
Receivables:
Fund shares sold		4,848,623
Dividends		65,044
Total assets		62,154,703
Liabilities:
Payable for:
Securities purchased		4,402,595
Fund shares redeemed		277,417
Management fees		36,953
Custodian fees		1,435
Transfer agent/maintenance fees		10,869
Distribution and service fees		5,318
Portfolio accounting fees		4,347
Other		45,122
Total liabilities		4,784,056
Net assets	$	57,370,647
Net assets consist of:
Paid in capital		126,017,954
Accumulated net investment loss		(447,147	)
Accumulated net realized loss on sale of investments		(98,330,642	)
Net unrealized appreciation in value of investments		30,130,482
Net assets		57,370,647
Investor Class:
Net assets	$	45,749,731
Capital shares outstanding		1,763,910
Net asset value per share		$25.94
Advisor Class:
Net assets	$	5,214,656
Capital shares outstanding		214,812
Net asset value per share		$24.28
A-Class:
Net assets	$	2,131,746
Capital shares outstanding		86,628
Net asset value per share		$24.61
Maximum offering price per share*		$25.84
C-Class:
Net assets	$	4,274,514
Capital shares outstanding		181,269
Net asset value per share		$23.58
Investments, at cost	$	26,854,906
Repurchase agreement, at cost		255,648
Total cost	$	27,110,554

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends	$	65,042
Interest		381
Total investment income		65,423
Expenses:
Management fees		293,187
Transfer agent and administrative fees		86,231
Distribution and Service Fees:
Advisor Class		13,309
A-Class		3,225
C-Class		19,322
Portfolio accounting fees		34,492
Trustees’ fees**		3,824
Registration		29,912
Miscellaneous		29,068
Total expenses		512,570
Net investment loss		(447,147	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		2,139,586
Net realized gain		2,139,586
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(8,382,554	)
Net unrealized depreciation		(8,382,554	)
Net loss		(6,242,968	)
Net decrease in net assets resulting from operations	$	(6,690,115	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

24    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(447,147	)	$	(1,027,989	)
Net realized gain during the period on investments		2,139,586			23,271,294
Net unrealized appreciation (depreciation) during the period on investments		(8,382,554	)		17,120,769
Net increase (decrease) in net assets resulting from operations		(6,690,115	)		39,364,074
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		106,011,163			382,174,346
Advisor Class		9,326,923			30,320,268
A-Class		3,343,842			3,174,070
C-Class		42,118,939			62,222,359
Cost of shares redeemed
Investor Class		(202,078,784	)		(335,407,314	)
Advisor Class		(12,831,963	)		(30,117,369	)
A-Class		(3,804,246	)		(5,562,086	)
C-Class		(42,374,315	)		(62,697,371	)
Net increase (decrease) from capital share transactions		(100,288,441	)		44,106,903
Net increase (decrease) in net assets		(106,978,556	)		83,470,977
Net assets:
Beginning of period		164,349,203			80,878,226
End of period	$	57,370,647		$	164,349,203
Accumulated net investment loss at end of period	$	(447,147	)	$	—
Capital share activity:
Shares sold
Investor Class		4,265,057			16,314,815
Advisor Class		398,592			1,372,828
A-Class		141,585			138,965
C-Class		1,848,481			2,885,464
Shares redeemed
Investor Class		(7,900,091	)		(14,313,826	)
Advisor Class		(540,207	)		(1,381,852	)
A-Class		(165,428	)		(264,013	)
C-Class		(1,855,673	)		(2,922,461	)
Total capital share activity		(3,807,684	)		1,829,920

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    25

  BIOTECHNOLOGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.34			$19.37			$21.51			$21.21			$23.45			$17.59
Income (loss) from investment operations:
Net investment lossb		(.15	)		(.21	)		(.19	)		(.22	)		(.27	)		(.26	)
Net gain (loss) on securities (realized and unrealized)		(1.25	)		8.18			(1.95	)		.52			(1.97	)		6.12
Total from investment operations		(1.40	)		7.97			(2.14	)		.30			(2.24	)		5.86
Net asset value, end of period		$25.94			$27.34			$19.37			$21.51			$21.21			$23.45
Total Returnc		(5.12%	)		41.15%			(9.95%	)		1.41%			(9.55%	)		33.31%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$45,750			$147,631			$65,829			$47,696			$61,366			$104,126
Ratios to average net assets:
Net investment loss		(1.19%	)		(0.90%	)		(0.86%	)		(0.94%	)		(1.23%	)		(1.25%	)
Total expenses		1.38%			1.39%			1.38%			1.39%			1.37%			1.34%
Portfolio turnover rate		147%			316%			370%			193%			269%			338%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.66			$18.27			$20.39			$20.20			$22.44			$16.91
Income (loss) from investment operations:
Net investment lossb		(.20	)		(.30	)		(.29	)		(.31	)		(.37	)		(.36	)
Net gain (loss) on securities (realized and unrealized)		(1.18	)		7.69			(1.83	)		.50			(1.87	)		5.89
Total from investment operations		(1.38	)		7.39			(2.12	)		.19			(2.24	)		5.53
Net asset value, end of period		$24.28			$25.66			$18.27			$20.39			$20.20			$22.44
Total Returnc		(5.38%	)		40.45%			(10.40%	)		0.94%			(9.98%	)		32.70%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,215			$9,144			$6,675			$4,220			$5,295			$26,240
Ratios to average net assets:
Net investment income (loss)		(1.68%	)		(1.38%	)		(1.40%	)		(1.42%	)		(1.75%	)		1.76%
Total expenses		1.88%			1.89%			1.88%			1.89%			1.87%			1.86%
Portfolio turnover rate		147%			316%			370%			193%			269%			338%

26    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  BIOTECHNOLOGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.98			$18.45			$20.54			$20.30			$22.50			$16.93
Income (loss) from investment operations:
Net investment lossb		(.17	)		(.25	)		(.24	)		(.27	)		(.31	)		(.33	)
Net gain (loss) on securities (realized and unrealized)		(1.20	)		7.78			(1.85	)		.51			(1.89	)		5.90
Total from investment operations		(1.37	)		7.53			(2.09	)		.24			(2.20	)		5.57
Net asset value, end of period		$24.61			$25.98			$18.45			$20.54			$20.30			$22.50
Total Returnc		(5.27%	)		40.81%			(10.18%	)		1.18%			(9.78%	)		32.90%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,132			$2,869			$4,346			$2,321			$849			$5,087
Ratios to average net assets:
Net investment loss		(1.44%	)		(1.12%	)		(1.17%	)		(1.26%	)		(1.50%	)		(1.52%	)
Total expenses		1.63%			1.64%			1.64%			1.62%			1.62%			1.63%
Portfolio turnover rate		147%			316%			370%			193%			269%			338%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$24.96			$17.87			$20.03			$19.95			$22.27			$16.87
Income (loss) from investment operations:
Net investment lossb		(.25	)		(.38	)		(.38	)		(.42	)		(.46	)		(.47	)
Net gain (loss) on securities (realized and unrealized)		(1.13	)		7.47			(1.78	)		.50			(1.86	)		5.87
Total from investment operations		(1.38	)		7.09			(2.16	)		.08			(2.32	)		5.40
Net asset value, end of period		$23.58			$24.96			$17.87			$20.03			$19.95			$22.27
Total Returnc		(5.57%	)		39.68%			(10.78%	)		0.40%			(10.42%	)		32.01%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,275			$4,705			$4,028			$3,671			$2,678			$7,786
Ratios to average net assets:
Net investment loss		(2.21%	)		(1.78%	)		(1.89%	)		(1.99%	)		(2.23%	)		(2.27%	)
Total expenses		2.38%			2.39%			2.39%			2.38%			2.36%			2.36%
Portfolio turnover rate		147%			316%			370%			193%			269%			338%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    27

FUND PROFILE (Unaudited)

September 30, 2010

CONSUMER PRODUCTS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally.

Inception: July 6, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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.	5.8	%
Coca-Cola Co.	5.6	%
Philip Morris International, Inc.	5.1	%
PepsiCo, Inc.	4.7	%
Altria Group, Inc.	3.5	%
Kraft Foods, Inc. — Class A	3.2	%
Colgate-Palmolive Co.	2.7	%
Kimberly-Clark Corp.	2.4	%
Archer-Daniels-Midland Co.	2.2	%
General Mills, Inc.	2.1	%
Top Ten Total	37.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

28    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  CONSUMER PRODUCTS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
CONSUMER STAPLES - 99.5%
Procter & Gamble Co.		73,356	$	4,399,159
Coca-Cola Co.		71,618		4,191,085
Philip Morris International, Inc.		68,753		3,851,543
PepsiCo, Inc.		53,672		3,565,968
Altria Group, Inc.		109,695		2,634,874
Kraft Foods, Inc. — Class A		81,932		2,528,421
Colgate-Palmolive Co.		26,513		2,037,789
Kimberly-Clark Corp.		27,640		1,797,982
Archer-Daniels-Midland Co.		51,462		1,642,667
General Mills, Inc.		44,182		1,614,409
Reynolds American, Inc.		25,419		1,509,634
Kellogg Co.		28,291		1,428,978
Coca-Cola Enterprises, Inc.		45,764		1,418,684
Sysco Corp.		47,125		1,344,005
Avon Products, Inc.		41,372		1,328,455
HJ Heinz Co.		28,000		1,326,360
Kroger Co.		59,183		1,281,903
Estee Lauder Companies, Inc. — Class A		19,668		1,243,608
Lorillard, Inc.		15,470		1,242,396
Mead Johnson Nutrition Co. — Class A		20,941		1,191,752
Campbell Soup Co.		32,627		1,166,415
Hershey Co.		22,797		1,084,909
Clorox Co.		15,829		1,056,744
Bunge Ltd.		17,649		1,044,115
Brown-Forman Corp. — Class B		16,889		1,041,038
Molson Coors Brewing Co. — Class B		22,016		1,039,595
ConAgra Foods, Inc.		45,181		991,271
Cia de Bebidas das Americas ADR		7,905		978,481
Dr Pepper Snapple Group, Inc.		27,315		970,229
Safeway, Inc.		45,335		959,289
Sara Lee Corp.		71,285		957,358
JM Smucker Co.		14,522		879,017
Hormel Foods Corp.		18,888		842,405
Whole Foods Market, Inc.*		22,170		822,729
Energizer Holdings, Inc.*		12,120		814,828
McCormick & Company, Inc.		19,355		813,684
Fomento Economico Mexicano SAB de CV ADR		15,448		783,677
NBTY, Inc.*		14,240		782,915
Tyson Foods, Inc. — Class A		48,820		782,096
Unilever N.V.		25,818		771,442
Alberto-Culver Co. — Class B		20,383		767,420
Hansen Natural Corp.*		16,168		753,752
Green Mountain Coffee
Roasters, Inc.*		23,456		731,593

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company

			MARKET
	SHARES		VALUE
Herbalife Ltd.		12,101	$	730,295
Church & Dwight Company, Inc.		11,002		714,470
Unilever plc ADR		24,015		698,837
Constellation Brands, Inc. — Class A*		39,264		694,580
Diageo plc ADR		9,707		669,880
Cosan Ltd. — Class A		56,318		652,726
Anheuser-Busch InBev N.V. ADR		10,538		619,108
Smithfield Foods, Inc.*		35,582		598,845
BRF - Brasil Foods S.A. ADR		38,314		595,016
Ralcorp Holdings, Inc.*		10,118		591,701
Corn Products International, Inc.		15,563		583,613
Casey’s General Stores, Inc.		12,872		537,406
Del Monte Foods Co.		39,578		518,868
Flowers Foods, Inc.		20,434		507,581
SUPERVALU, Inc.		41,966		483,868
Nu Skin Enterprises, Inc. — Class A		16,678		480,326
Dean Foods Co.*		44,155		450,823
Ruddick Corp.		12,825		444,771
Central European Distribution Corp.*		18,352		409,617
TreeHouse Foods, Inc.*		8,833		407,201
United Natural Foods, Inc.*		12,266		406,495
Fresh Del Monte Produce, Inc.*		18,379		398,824
Sanderson Farms, Inc.		7,240		313,420
Lancaster Colony Corp.		6,441		305,948
Total Consumer Staples				75,228,893
Total Common Stocks
(Cost $63,481,164)				75,228,893
WARRANTS†† - 0.0%
Consumer Discretionary - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		125		6
Total Warrants
(Cost $—)				6
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.3%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$245,162		245,162
Total Repurchase Agreement
(Cost $245,162)				245,162
Total Investments - 99.8%
(Cost $63,726,326)			$	75,474,061
Cash & Other Assets, Less Liabilities – 0.2%				138,928
Total Net Assets – 100.0%			$	75,612,989

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    29

2

  CONSUMER PRODUCTS FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	75,228,899
Repurchase agreement, at value		245,162
Total investments		75,474,061
Receivables:
Securities sold		35,240,910
Fund shares sold		2,021,788
Dividends		584,624
Total assets		113,321,383
Liabilities:
Payable for:
Fund shares redeemed		37,466,751
Management fees		117,014
Custodian fees		4,745
Transfer agent/maintenance fees		34,416
Distribution and service fees		6,868
Portfolio accounting fees		13,766
Other		64,834
Total liabilities		37,708,394
Net assets	$	75,612,989
Net assets consist of:
Paid in capital		50,649,271
Undistributed net investment income		2,229,094
Undistributed net realized gain on sale of investments		10,986,889
Net unrealized appreciation in value of investments		11,747,735
Net assets		75,612,989
Investor Class:
Net assets	$	60,734,869
Capital shares outstanding		1,567,189
Net asset value per share		$38.75
Advisor Class:
Net assets	$	7,373,766
Capital shares outstanding		201,651
Net asset value per share		$36.57
A-Class:
Net assets	$	3,781,598
Capital shares outstanding		101,884
Net asset value per share		$37.12
Maximum offering price per share*		$38.97
C-Class:
Net assets	$	3,722,756
Capital shares outstanding		105,607
Net asset value per share		$35.25
Investments, at cost	$	63,481,164
Repurchase agreement, at cost		245,162
Total cost	$	63,726,326

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $363)	$	1,482,534
Interest		448
Total investment income		1,482,982
Expenses:
Management fees		489,501
Transfer agent and administrative fees		143,970
Distribution and Service Fees:
Advisor Class		12,808
A-Class		8,753
C-Class		22,508
Portfolio accounting fees		57,588
Trustees’ fees**		5,314
Miscellaneous		93,862
Total expenses		834,304
Net investment income		648,678
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		19,265,407
Net realized gain		19,265,407
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(15,311,738	)
Net unrealized depreciation		(15,311,738	)
Net realized and unrealized gain		3,953,669
Net increase in net assets resulting from operations	$	4,602,347

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2 (a)(19) of the 1940 Act.

30    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

3

  CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	648,678		$	1,580,414
Net realized gain during the period on investments		19,265,407			6,595,196
Net unrealized appreciation (depreciation) during the period on investments		(15,311,738	)		26,967,623
Net increase in net assets resulting from operations		4,602,347			35,143,233
Distributions to shareholders from:
Net investment income
Investor Class		—			(464,050	)
Advisor Class		—			(15,832	)
A-Class		—			(10,343	)
C-Class		—			(12,499	)
Total distributions to shareholders		—			(502,724	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		243,037,583			339,328,485
Advisor Class		15,721,460			21,109,662
A-Class		4,801,017			21,203,982
C-Class		44,930,533			51,174,979
Distributions reinvested
Investor Class		—			458,899
Advisor Class		—			15,678
A-Class		—			7,814
C-Class		—			12,307
Cost of shares redeemed
Investor Class		(370,281,673	)		(201,366,844	)
Advisor Class		(14,371,949	)		(29,112,678	)
A-Class		(21,622,845	)		(3,884,119	)
C-Class		(45,413,881	)		(51,159,705	)
Net increase (decrease) from capital share transactions		(143,199,755	)		147,788,460
Net increase (decrease) in net assets		(138,597,408	)		182,428,969
Net assets:
Beginning of period		214,210,397			31,781,428
End of period	$	75,612,989		$	214,210,397
Undistributed net investment income at end of period	$	2,229,094		$	1,580,416
Capital share activity:
Shares sold
Investor Class		6,520,147			10,319,500
Advisor Class		447,792			656,386
A-Class		134,339			601,974
C-Class		1,325,882			1,595,030
Shares reinvested
Investor Class		—			13,194
Advisor Class		—			476
A-Class		—			234
C-Class		—			386
Shares redeemed
Investor Class		(9,788,609	)		(6,054,152	)
Advisor Class		(408,940	)		(937,075	)
A-Class		(619,197	)		(129,685	)
C-Class		(1,341,614	)		(1,600,013	)
Total capital share activity		(3,730,200	)		4,466,255

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    31

  CONSUMER PRODUCTS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$37.83			$26.39			$36.40			$36.11			$31.03			$30.50
Income (loss) from investment operations:
Net investment incomeb		.23			.50			.55			.52			.43			.30
Net gain (loss) on securities
(realized and unrealized)		.69			11.04			(10.35	)		.13			4.71			.65
Total from investment operations		.92			11.54			(9.80	)		.65			5.14			.95
Less distributions:
Distributions from net investment income		—			(.10	)		(.21	)		(.36	)		(.06	)		(.42	)
Total distributions		—			(.10	)		(.21	)		(.36	)		(.06	)		(.42	)
Net asset value, end of period		$38.75			$37.83			$26.39			$36.40			$36.11			$31.03
Total Returnc		2.43%			43.75%			(26.96%	)		1.72%			16.58%			3.13%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$60,735			$182,915			$14,703			$8,722			$21,814			$11,815
Ratios to average net assets:
Net investment income		1.22%			1.46%			1.81%			1.37%			1.29%			0.98%
Total expenses		1.37%			1.37%			1.38%			1.37%			1.37%			1.32%
Portfolio turnover rate		182%			200%			445%			449%			455%			813%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$35.77			$25.09			$34.78			$34.68			$29.96			$29.66
Income (loss) from investment operations:
Net investment incomeb		.17			.35			.34			.15			.20			.03
Net gain (loss) on securities
(realized and unrealized)		.63			10.43			(9.82	)		.31			4.58			.69
Total from investment operations		.80			10.78			(9.48	)		.46			4.78			.72
Less distributions:
Distributions from net investment income		—			(.10	)		(.21	)		(.36	)		(.06	)		.42
Total distributions		—			(.10	)		(.21	)		(.36	)		(.06	)		.42
Net asset value, end of period		$36.57			$35.77			$25.09			$34.78			$34.68			$29.96
Total Returnc		2.24%			42.99%			(27.29%	)		1.25%			15.97%			2.44%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,374			$5,824			$11,113			$5,384			$5,754			$6,487
Ratios to average net assets:
Net investment income		0.96%			1.17%			1.18%			0.42%			0.64%			0.08%
Total expenses		1.87%			1.88%			1.87%			1.87%			1.86%			1.82%
Portfolio turnover rate		182%			200%			445%			449%			455%			813%

32    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  CONSUMER PRODUCTS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$36.26			$25.37			$35.09			$34.90			$30.07			$29.69
Income (loss) from investment operations:
Net investment incomeb		.08			.55			.42			.50			.42			.18
Net gain (loss) on securities
(realized and unrealized)		.78			10.44			(9.93	)		.05			4.47			.62
Total from investment operations		.86			10.99			(9.51	)		.55			4.89			.80
Less distributions:
Distributions from net investment income		—			(.10	)		(.21	)		(.36	)		(.06	)		(.42	)
Total distributions		—			(.10	)		(.21	)		(.36	)		(.06	)		(.42	)
Net asset value, end of period		$37.12			$36.26			$25.37			$35.09			$34.90			$30.07
Total Returnc		2.37%			43.34%			(27.14%	)		1.50%			16.27%			2.71%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,782			$21,277			$2,898			$1,682			$3,935			$1,475
Ratios to average net assets:
Net investment income		0.45%			1.72%			1.41%			1.38%			1.30%			0.62%
Total expenses		1.62%			1.63%			1.63%			1.63%			1.61%			1.60%
Portfolio turnover rate		182%			200%			445%			449%			455%			813%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$34.57			$24.36			$33.95			$34.04			$29.55			$29.53
Income (loss) from investment operations:
Net investment income (loss)b		.04			.24			.19			.17			.20			(.03	)
Net gain (loss) on securities
(realized and unrealized)		.64			10.07			(9.57	)		.10			4.35			.47
Total from investment operations		.68			10.31			(9.38	)		.27			4.55			.44
Less distributions:
Distributions from net investment income		—			(.10	)		(.21	)		(.36	)		(.06	)		(.42	)
Total distributions		—			(.10	)		(.21	)		(.36	)		(.06	)		(.42	)
Net asset value, end of period		$35.25			$34.57			$24.36			$33.95			$34.04			$29.55
Total Returnc		2.00%			42.35%			(27.67%	)		0.71%			15.41%			1.50%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,723			$4,194			$3,067			$3,903			$5,472			$1,340
Ratios to average net assets:
Net investment income (loss)		0.25%			0.77%			0.65%			0.49%			0.62%			(0.11%	)
Total expenses		2.37%			2.38%			2.38%			2.37%			2.36%			2.33%
Portfolio turnover rate		182%			200%			445%			449%			455%			813%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    33

FUND PROFILE (Unaudited)

September 30, 2010

ELECTRONICS FUND

OBJECTIVE: Seeks to provide 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.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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.	8.8	%
Texas Instruments, Inc.	5.3	%
Broadcom Corp. — Class A	3.7	%
Applied Materials, Inc.	3.4	%
Altera Corp.	2.9	%
Marvell Technology Group Ltd.	2.9	%
Analog Devices, Inc.	2.7	%
Xilinx, Inc.	2.4	%
Linear Technology Corp.	2.4	%
KLA-Tencor Corp.	2.3	%
Top Ten Total	36.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

34    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  ELECTRONICS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 98.6%
INFORMATION TECHNOLOGY - 98.6%
Intel Corp.		45,126	$	867,774
Texas Instruments, Inc.		19,388		526,191
Broadcom Corp. — Class A		10,538		372,941
Applied Materials, Inc.		28,106		328,279
Altera Corp.		9,590		289,234
Marvell Technology Group Ltd.*		16,389		286,971
Analog Devices, Inc.		8,746		274,449
Xilinx, Inc.		9,003		239,570
Linear Technology Corp.		7,712		236,990
KLA-Tencor Corp.		6,622		233,294
Microchip Technology, Inc.		7,018		220,716
NVIDIA Corp.*		18,860		220,285
Maxim Integrated Products, Inc.		11,330		209,718
Atmel Corp.*		25,963		206,665
Micron Technology, Inc.*		28,092		202,543
Lam Research Corp.*		4,839		202,513
Cree, Inc.*		3,520		191,101
Taiwan Semiconductor Manufacturing Company Ltd. ADR		17,995		182,469
Skyworks Solutions, Inc.*		8,742		180,785
Advanced Micro Devices, Inc.*		24,403		173,505
ON Semiconductor Corp.*		21,652		156,111
MEMC Electronic Materials, Inc.*		12,409		147,915
Rambus, Inc.*		6,919		144,192
National Semiconductor Corp.		11,287		144,135
LSI Corp.*		31,186		142,208
Novellus Systems, Inc.*		5,159		137,126
ASML Holding N.V. — Class G		4,530		134,677
Cypress Semiconductor Corp.*		10,584		133,147
TriQuint Semiconductor, Inc.*		13,112		125,875
Varian Semiconductor Equipment Associates, Inc.*		4,255		122,459
Teradyne, Inc.*		10,989		122,417
Netlogic Microsystems, Inc.*		4,048		111,644
PMC - Sierra, Inc.*		14,919		109,804
Atheros Communications, Inc.*		4,089		107,745
Semtech Corp.*		5,223		105,452
Silicon Laboratories, Inc.*		2,808		102,913
Cavium Networks, Inc.*		3,519		101,206
Microsemi Corp.*		5,893		101,065
Intersil Corp. — Class A		8,544		99,879
Veeco Instruments, Inc.*		2,838		98,961

			MARKET
	SHARES		VALUE
International Rectifier Corp.*		4,670	$	98,490
Cymer, Inc.*		2,656		98,484
Amkor Technology, Inc.*		14,757		96,953
Fairchild Semiconductor International, Inc. — Class A*		10,156		95,466
Cirrus Logic, Inc.*		5,326		95,016
Omnivision Technologies, Inc.*		4,104		94,556
Integrated Device Technology, Inc.*		14,936		87,376
Tessera Technologies, Inc.*		4,718		87,283
Power Integrations, Inc.		2,493		79,252
Applied Micro Circuits Corp.*		6,675		66,750
Avago Technologies Ltd.*		2,958		66,585
Micrel, Inc.		6,573		64,810
Lattice Semiconductor Corp.*		13,497		64,111
Volterra Semiconductor Corp.*		2,837		61,052
Advanced Energy Industries, Inc.*		4,448		58,091
Monolithic Power Systems, Inc.*		3,323		54,265
Rubicon Technology, Inc.*		2,389		54,206
Diodes, Inc.*		3,052		52,159
Hittite Microwave Corp.*		1,076		51,271
Kulicke & Soffa Industries, Inc.*		8,280		51,253
Verigy, Ltd.*		6,238		50,715
Formfactor, Inc.*		5,824		50,086
Zoran Corp.*		6,227		47,574
Cabot Microelectronics Corp.*		1,399		45,020
MKS Instruments, Inc.*		2,408		43,296
FEI Co.*		2,125		41,586
Total Information Technology				9,850,630
Total Common Stocks (Cost $7,299,722)				9,850,630
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.3%
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/10		$32,937		32,937
Total Repurchase Agreement (Cost $32,937)				32,937
Total Investments - 98.9% (Cost $7,332,659)			$	9,883,567
Cash & Other Assets, Less Liabilities – 1.1%				107,955
Total Net Assets – 100.0%			$	9,991,522

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    35

  ELECTRONICS FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	9,850,630
Repurchase agreement, at value		32,937
Total investments		9,883,567
Receivables:
Fund shares sold		5,068,920
Dividends		560
Total assets		14,953,047
Liabilities:
Payable for:
Securities purchased		4,773,820
Fund shares redeemed		166,803
Management fees		5,520
Custodian fees		217
Transfer agent/maintenance fees		1,623
Distribution and service fees		1,340
Portfolio accounting fees		649
Other		11,553
Total liabilities		4,961,525
Net assets	$	9,991,522
Net assets consist of:
Paid in capital		64,345,162
Accumulated net investment loss		(3,083	)
Accumulated net realized loss on sale of investments		(56,901,465	)
Net unrealized appreciation in value of investments		2,550,908
Net assets		9,991,522
Investor Class:
Net assets	$	7,900,642
Capital shares outstanding		163,709
Net asset value per share		$48.26
Advisor Class:
Net assets	$	365,885
Capital shares outstanding		8,068
Net asset value per share		$45.35
A-Class:
Net assets	$	442,700
Capital shares outstanding		9,636
Net asset value per share		$45.94
Maximum offering price per share*		$48.23
C-Class:
Net assets	$	1,282,295
Capital shares outstanding		29,129
Net asset value per share		$44.02
Investments, at cost	$	7,299,722
Repurchase agreement, at cost		32,937
Total cost	$	7,332,659

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends	$	119,297
Interest		76
Total investment income		119,373
Expenses:
Management fees		67,773
Transfer agent and administrative fees		19,933
Distribution and Service Fees:
Advisor Class		2,514
A-Class		1,897
C-Class		7,922
Portfolio accounting fees		7,973
Trustees’ fees**		886
Registration		10,794
Miscellaneous		2,764
Total expenses		122,456
Net investment loss		(3,083	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(2,959,491	)
Net realized loss		(2,959,491	)
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		(3,425,661	)
Net unrealized depreciation		(3,425,661	)
Net loss		(6,385,152	)
Net decrease in net assets resulting from operations	$	(6,388,235	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

36    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(3,083	)	$	(66,359	)
Net realized gain (loss) during the period on investments		(2,959,491	)		13,159,163
Net unrealized depreciation during the period on investments		(3,425,661	)		(2,372,844	)
Net increase (decrease) in net assets resulting from operations		(6,388,235	)		10,719,960
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		127,674,138			316,164,916
Advisor Class		9,895,581			13,959,995
A-Class		4,483,834			12,783,547
C-Class		67,891,796			104,366,297
Cost of shares redeemed
Investor Class		(130,145,846	)		(416,397,442	)
Advisor Class		(10,947,347	)		(16,125,892	)
A-Class		(4,835,214	)		(11,646,403	)
C-Class		(69,930,194	)		(101,888,992	)
Net decrease from capital share transactions		(5,913,252	)		(98,783,974	)
Net decrease in net assets		(12,301,487	)		(88,064,014	)
Net assets:
Beginning of period		22,293,009			110,357,023
End of period	$	9,991,522		$	22,293,009
Accumulated net investment loss at end of period	$	(3,083	)	$	—
Capital share activity:
Shares sold
Investor Class		2,533,488			6,827,464
Advisor Class		214,799			326,605
A-Class		90,766			280,864
C-Class		1,505,470			2,506,446
Shares redeemed
Investor Class		(2,675,290	)		(9,779,092	)
Advisor Class		(239,902	)		(395,089	)
A-Class		(107,766	)		(255,566	)
C-Class		(1,546,115	)		(2,451,879	)
Total capital share activity		(224,550	)		(2,940,247	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    37

1

  ELECTRONICS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010		e	2009		e	2008		e	2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$52.33			$32.76			$50.30			$62.30			$67.60			$51.55
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.02	)		(—	)c		(.25	)		(.50	)		(.55	)
Net gain (loss) on securities (realized and unrealized)		(4.10	)		19.59			(17.54	)		(11.75	)		(4.80	)		16.60
Total from investment operations		(4.07	)		19.57			(17.54	)		(12.00	)		(5.30	)		16.05
Net asset value, end of period		$48.26			$52.33			$32.76			$50.30			$62.30			$67.60
Total Returnd		(7.78%	)		59.74%			(34.89%	)		(19.26%	)		(7.84%	)		31.13%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,901			$15,988			$106,703			$9,835			$15,376			$34,194
Ratios to average net assets:
Net investment income (loss)		0.14%			(0.06%	)		(0.03%	)		(0.37%	)		(0.76%	)		(0.91%	)
Total expenses		1.38%			1.38%			1.34%			1.36%			1.37%			1.34%
Portfolio turnover rate		759%			592%			408%			784%			759%			911%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010		e	2009		e	2008		e	2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$49.26			$31.01			$47.80			$59.40			$64.90			$49.75
Income (loss) from investment operations:
Net investment lossb		(.09	)		(.16	)		(.10	)		(.60	)		(.75	)		(.80	)
Net gain (loss) on securities (realized and unrealized)		(3.82	)		18.41			(16.69	)		(11.00	)		(4.75	)		15.95
Total from investment operations		(3.91	)		18.25			(16.79	)		(11.60	)		(5.50	)		15.15
Net asset value, end of period		$45.35			$49.26			$31.01			$47.80			$59.40			$64.90
Total Returnd		(7.94%	)		58.85%			(35.15%	)		(19.53%	)		(8.47%	)		30.45%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$366			$1,634			$3,152			$566			$1,511			$14,089
Ratios to average net assets:
Net investment loss		(0.39%	)		(0.39%	)		(0.29%	)		(0.98%	)		(1.20%	)		(1.39%	)
Total expenses		1.88%			1.87%			1.86%			1.88%			1.87%			1.84%
Portfolio turnover rate		759%			592%			408%			784%			759%			911%

38    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

2

  ELECTRONICS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010		e	2009		e	2008		e	2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$49.88			$31.31			$48.25			$59.95			$65.15			$49.80
Income (loss) from investment operations:
Net investment lossb		(.06	)		(.14	)		(.10	)		(.55	)		(.55	)		(.70	)
Net gain (loss) on securities (realized and unrealized)		(3.88	)		18.71			(16.84	)		(11.15	)		(4.65	)		16.05
Total from investment operations		(3.94	)		18.57			(16.94	)		(11.70	)		(5.20	)		15.35
Net asset value, end of period		$45.94			$49.88			$31.31			$48.25			$59.95			$65.15
Total Returnd		(7.90%	)		59.31%			(35.13%	)		(19.52%	)		(7.98%	)		30.82%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$443			$1,329			$42			$85			$130			$1,253
Ratios to average net assets:
Net investment loss		(0.24%	)		(0.31%	)		(0.26%	)		(0.90%	)		(0.94%	)		(1.18%	)
Total expensesd		1.64%			1.62%			1.60%			1.62%			1.63%			1.64%
Portfolio turnover rate		759%			592%			408%			784%			759%			911%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010		e	2009		e	2008		e	2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$47.90			$30.28			$46.90			$58.65			$64.30			$49.50
Income (loss) from investment operations:
Net investment lossb		(.21	)		(.51	)		(.30	)		(.75	)		(1.00	)		(1.05	)
Net gain (loss) on securities (realized and unrealized)		(3.67	)		18.13			(16.32	)		(11.00	)		(4.65	)		15.85
Total from investment operations		(3.88	)		17.62			(16.62	)		(11.75	)		(5.65	)		14.80
Net asset value, end of period		$44.02			$47.90			$30.28			$46.90			$58.65			$64.30
Total Returnd		(8.10%	)		58.19%			(35.39%	)		(20.03%	)		(8.79%	)		29.90%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,282			$3,342			$460			$962			$2,876			$5,015
Ratios to average net assets:
Net investment loss		(0.93%	)		(1.21%	)		(0.74%	)		(1.26%	)		(1.72%	)		(1.91%	)
Total expenses		2.38%			2.38%			2.42%			2.38%			2.36%			2.36%
Portfolio turnover rate		759%			592%			408%			784%			759%			911%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Net investment income is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Per share amounts for the period:
	March 31, 2006 – April 19, 2009 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    39

3

FUND PROFILE (Unaudited)

September 30, 2010

ENERGY FUND

OBJECTIVE: Seeks to provide 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.

Inception: April 21, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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.	7.4	%
Chevron Corp.	4.4	%
Schlumberger Ltd.	4.0	%
ConocoPhillips	3.1	%
Occidental Petroleum Corp.	2.5	%
Suncor Energy, Inc.	2.3	%
Anadarko Petroleum Corp.	2.2	%
Petroleo Brasileiro S.A. ADR	2.1	%
Halliburton Co.	2.0	%
Canadian Natural Resources Ltd.	2.0	%
Top Ten Total	32.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

40    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  ENERGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
ENERGY - 99.5%
Exxon Mobil Corp.		63,837	$	3,944,488
Chevron Corp.		29,249		2,370,631
Schlumberger Ltd.		34,619		2,132,876
ConocoPhillips		29,295		1,682,412
Occidental Petroleum Corp.		17,502		1,370,407
Suncor Energy, Inc.		38,728		1,260,596
Anadarko Petroleum Corp.		19,984		1,140,088
Petroleo Brasileiro S.A. ADR		31,315		1,135,795
Halliburton Co.		33,241		1,099,280
Canadian Natural Resources Ltd.		31,150		1,077,790
Apache Corp.		10,634		1,039,580
Devon Energy Corp.		14,402		932,385
Transocean Ltd.*		14,137		908,868
Marathon Oil Corp.		26,167		866,128
National Oilwell Varco, Inc.		19,116		850,089
Hess Corp.		14,004		827,916
EOG Resources, Inc.		8,610		800,472
Encana Corp.		26,079		788,368
Talisman Energy, Inc.		44,196		772,988
Baker Hughes, Inc.		17,818		759,047
BP plc ADR		18,009		741,431
Peabody Energy Corp.		14,708		720,838
Spectra Energy Corp.		31,109		701,508
Noble Energy, Inc.		9,277		696,610
Weatherford International Ltd.*		40,443		691,575
Chesapeake Energy Corp.		29,219		661,810
Murphy Oil Corp.		10,585		655,423
Cameco Corp. — Class A		23,494		651,489
Cameron International Corp.*		14,470		621,631
FMC Technologies, Inc.*		8,499		580,397
Diamond Offshore Drilling, Inc.		8,454		572,928
Total S.A. ADR		11,093		572,399
Williams Companies, Inc.		29,832		570,090
Valero Energy Corp.		32,136		562,701
Nexen, Inc.		27,882		560,428
Ensco plc ADR		12,465		557,559
Noble Corp.		16,410		554,494
Southwestern Energy Co.*		15,848		529,957
El Paso Corp.		42,688		528,477
Consol Energy, Inc.		13,945		515,407
Newfield Exploration Co.*		8,762		503,289
Continental Resources, Inc.*		10,614		492,065
Pioneer Natural Resources Co.		7,245		471,142

			MARKET
	SHARES		VALUE
Concho Resources, Inc.*		7,113	$	470,667
Royal Dutch Shell plc ADR		7,473		450,622
Pride International, Inc.*		15,243		448,601
Tenaris S.A. ADR		11,563		444,250
Denbury Resources, Inc.*		27,577		438,199
PetroChina Company, Ltd. ADR		3,690		429,590
Alpha Natural Resources, Inc.*		10,373		426,849
Whiting Petroleum Corp.*		4,345		414,991
Arch Coal, Inc.		15,484		413,578
Ultra Petroleum Corp.*		9,801		411,446
CNOOC Ltd. ADR		2,090		406,087
Range Resources Corp.		10,367		395,294
Sunoco, Inc.		10,683		389,930
Cimarex Energy Co.		5,869		388,410
Core Laboratories N.V.		4,339		382,006
China Petroleum & Chemical Corp. ADR		4,270		376,956
Nabors Industries Ltd.*		20,788		375,431
Rowan Companies, Inc.*		12,316		373,914
Plains Exploration & Production Co.*		13,966		372,473
Helmerich & Payne, Inc.		8,879		359,244
InterOil Corp.*		5,200		355,888
Petrohawk Energy Corp.*		21,430		345,880
Statoil ASA ADR		16,260		341,135
Oceaneering International, Inc.*		6,108		328,977
Massey Energy Co.		10,439		323,818
Forest Oil Corp.*		10,858		322,483
Dresser-Rand Group, Inc.*		8,735		322,234
Patterson-UTI Energy, Inc.		18,393		314,152
Southern Union Co.		13,039		313,718
EXCO Resources, Inc.		20,244		301,028
Mariner Energy, Inc.*		11,939		289,282
Cabot Oil & Gas Corp.		9,580		288,454
Oil States International, Inc.*		6,027		280,557
Tidewater, Inc.		6,214		278,449
Brigham Exploration Co.*		14,555		272,906
Quicksilver Resources, Inc.*		20,801		262,093
SM Energy Co.		6,745		252,668
Atlas Energy, Inc.*		8,670		248,309
Frontline Ltd.		8,476		240,973
Unit Corp.*		5,819		216,991
Total Energy				53,542,385
Total Common Stocks
(Cost $32,064,007)				53,542,385

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    41

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  ENERGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10	$	277,470	$	277,470
Total Repurchase Agreement
(Cost $277,470)				277,470
Total Investments - 100.0%
(Cost $32,341,477)			$	53,819,855
Cash & Other Assets, Less Liabilities – 0.0%				16,412
Total Net Assets - 100.0%			$	53,836,267

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company

42    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ENERGY FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	53,542,385
Repurchase agreement, at value		277,470
Total investments		53,819,855
Cash		4,271
Receivables:
Fund shares sold		4,696,031
Dividends		31,995
Total assets		58,552,152
Liabilities:
Payable for:
Securities purchased		4,410,844
Fund shares redeemed		212,737
Management fees		34,121
Custodian fees		1,328
Transfer agent/maintenance fees		10,036
Distribution and service fees		13,306
Portfolio accounting fees		4,014
Other		29,499
Total liabilities		4,715,885
Net assets	$	53,836,267
Net assets consist of:
Paid in capital		54,011,330
Undistributed net investment income		69,805
Accumulated net realized loss on sale of investments		(21,723,246	)
Net unrealized appreciation in value of investments		21,478,378
Net assets		53,836,267
Investor Class:
Net assets	$	32,053,711
Capital shares outstanding		1,573,606
Net asset value per share		$20.37
Advisor Class:
Net assets	$	5,699,584
Capital shares outstanding		297,465
Net asset value per share		$19.16
A-Class:
Net assets	$	3,873,030
Capital shares outstanding		198,944
Net asset value per share		$19.47
Maximum offering price per share*		$20.44
C-Class:
Net assets	$	12,209,942
Capital shares outstanding		664,056
Net asset value per share		$18.39
Investments, at cost	$	32,064,007
Repurchase agreement, at cost		277,470
Total cost	$	32,341,477

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $7,380)	$	435,011
Interest		263
Total investment income		435,274
Expenses:
Management fees		231,174
Transfer agent and administrative fees		67,992
Distribution and Service Fees:
Advisor Class		14,826
A-Class		4,542
C-Class		64,119
Portfolio accounting fees		27,197
Trustees’ fees**		2,198
Miscellaneous		45,833
Total expenses		457,881
Net investment loss		(22,607	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		917,731
Net realized gain		917,731
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(4,119,915	)
Net unrealized depreciation		(4,119,915	)
Net loss		(3,202,184	)
Net decrease in net assets resulting from operations	$	(3,224,791	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    43

  ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(22,607	)	$	134,928
Net realized gain during the period on investments		917,731			6,591,106
Net unrealized appreciation (depreciation) during the period on investments		(4,119,915	)		15,267,322
Net increase (decrease) in net assets resulting from operations		(3,224,791	)		21,993,356
Distributions to shareholders from:
Net investment income
Investor Class		—			(23,766	)
Advisor Class		—			(6,343	)
A-Class		—			(2,905	)
C-Class		—			(11,544	)
Total distributions to shareholders		—			(44,558	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		63,289,183			130,635,169
Advisor Class		4,862,932			26,610,999
A-Class		2,354,224			4,285,714
C-Class		32,679,027			77,225,005
Distributions reinvested
Investor Class		—			22,854
Advisor Class		—			6,290
A-Class		—			2,427
C-Class		—			10,909
Cost of shares redeemed
Investor Class		(64,082,417	)		(162,468,687	)
Advisor Class		(5,350,773	)		(26,878,717	)
A-Class		(2,303,745	)		(6,863,378	)
C-Class		(33,979,053	)		(77,961,140	)
Net decrease from capital share transactions		(2,530,622	)		(35,372,555	)
Net decrease in net assets		(5,755,413	)		(13,423,757	)
Net assets:
Beginning of period		59,591,680			73,015,437
End of period	$	53,836,267		$	59,591,680
Undistributed net investment income at end of period	$	69,805		$	92,412
Capital share activity:
Shares sold
Investor Class		3,178,282			6,736,451
Advisor Class		260,286			1,493,002
A-Class		125,320			250,032
C-Class		1,843,595			4,470,462
Shares reinvested
Investor Class		—			1,178
Advisor Class		—			343
A-Class		—			131
C-Class		—			618
Shares redeemed
Investor Class		(3,289,090	)		(8,881,132	)
Advisor Class		(291,823	)		(1,516,738	)
A-Class		(121,425	)		(415,616	)
C-Class		(1,915,941	)		(4,502,875	)
Total capital share activity		(210,796	)		(2,364,144	)

44    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ENERGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$20.91			$14.01			$27.29			$23.19			$21.68			$17.12
Income (loss) from investment operations:
Net investment income (loss)b		.02			.10			.06			(.03	)		(—	)c		.02
Net gain (loss) on securities (realized and unrealized)		(.56	)		6.82			(12.61	)		4.86			1.92			5.02
Total from investment operations		(.54	)		6.92			(12.55	)		4.83			1.92			5.04
Less distributions:
Distributions from net investment income		—			(.02	)		—			—			—			(.03	)
Distributions from realized gains		—			—			(.73	)		(.73	)		(.41	)		(.45	)
Total distributions		—			(.02	)		(.73	)		(.73	)		(.41	)		(.48	)
Net asset value, end of period		$20.37			$20.91			$14.01			$27.29			$23.19			$21.68
Total Returnd		(2.58%	)		49.37%			(46.01%	)		20.91%			8.87%			29.60%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$32,054			$35,228			$53,627			$63,325			$75,204			$90,331
Ratios to average net assets:
Net investment income (loss)		0.20%			0.51%			0.28%			(0.10%	)		(0.01%	)		0.08%
Total expenses		1.38%			1.38%			1.37%			1.37%			1.36%			1.34%
Portfolio turnover rate		117%			228%			310%			188%			283%			415%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$19.72			$13.28			$26.07			$22.29			$20.96			$16.65
Income (loss) from investment operations:
Net investment lossb		(.02	)		(—	)c		(.04	)		(.15	)		(.12	)		(.07	)
Net gain (loss) on securities (realized and unrealized)		(.54	)		6.46			(12.02	)		4.66			1.86			4.86
Total from investment operations		(.56	)		6.46			(12.06	)		4.51			1.74			4.79
Less distributions:
Distributions from net investment income		—			(.02	)		—			—			—			(.03	)
Distributions from realized gains		—			—			(.73	)		(.73	)		(.41	)		(.45	)
Total distributions		—			(.02	)		(.73	)		(.73	)		(.41	)		(.48	)
Net asset value, end of period		$19.16			$19.72			$13.28			$26.07			$22.29			$20.96
Total Returnd		(2.84%	)		48.62%			(46.29%	)		20.31%			8.31%			28.93%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,700			$6,489			$4,679			$17,713			$14,613			$18,162
Ratios to average net assets:
Net investment loss		(0.24%	)		(0.02%	)		(0.16%	)		(0.58%	)		(0.54%	)		(0.38%	)
Total expenses		1.88%			1.88%			1.88%			1.86%			1.86%			1.85%
Net expensese		1.88%			1.88%			1.88%			1.86%			1.86%			1.84%
Portfolio turnover rate		117%			228%			310%			188%			283%			415%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    45

  ENERGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$20.01			$13.44			$26.30			$22.44			$21.04			$16.68
Income (loss) from investment operations:
Net investment income (loss)b		(—	)c		.06			.02			(.08	)		(.06	)		(.05	)
Net gain (loss) on securities (realized and unrealized)		(.54	)		6.53			(12.15	)		4.67			1.87			4.89
Total from investment operations		(.54	)		6.59			(12.13	)		4.59			1.81			4.84
Less distributions:
Distributions from net investment income		—			(.02	)		—			—			—			(.03	)
Distributions from realized gains		—			—			(.73	)		(.73	)		(.41	)		(.45	)
Total distributions		—			(.02	)		(.73	)		(.73	)		(.41	)		(.48	)
Net asset value, end of period		$19.47			$20.01			$13.44			$26.30			$22.44			$21.04
Total Returnd		(2.70%	)		49.01%			(46.15%	)		20.54%			8.62%			29.18%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,873			$3,903			$4,845			$6,378			$3,307			$3,210
Ratios to average net assets:
Net investment income (loss)		(0.01%	)		0.35%			0.10%			(0.31%	)		(0.29%	)		(0.25%	)
Total expenses		1.63%			1.63%			1.63%			1.61%			1.61%			1.61%
Net expensese		1.63%			1.63%			1.63%			1.61%			1.61%			1.60%
Portfolio turnover rate		117%			228%			310%			188%			283%			415%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$18.97			$12.84			$25.37			$21.81			$20.62			$16.47
Income (loss) from investment operations:
Net investment lossb		(.07	)		(.08	)		(.14	)		(.27	)		(.21	)		(.16	)
Net gain (loss) on securities (realized and unrealized)		(.51	)		6.23			(11.66	)		4.56			1.81			4.79
Total from investment operations		(.58	)		6.15			(11.80	)		4.29			1.60			4.63
Less distributions:
Distributions from net investment income		—			(.02	)		—			—			—			(.03	)
Distributions from realized gains		—			—			(.73	)		(.73	)		(.41	)		(.45	)
Total distributions		—			(.02	)		(.73	)		(.73	)		(.41	)		(.48	)
Net asset value, end of period		$18.39			$18.97			$12.84			$25.37			$21.81			$20.62
Total Returnd		(3.06%	)		47.87%			(46.55%	)		19.74%			7.77%			28.27%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$12,210			$13,972			$9,865			$20,989			$18,624			$23,734
Ratios to average net assets:
Net investment loss		(0.73%	)		(0.48%	)		(0.65%	)		(1.07%	)		(1.00%	)		(0.88%	)
Total expenses		2.38%			2.38%			2.38%			2.36%			2.36%			2.35%
Portfolio turnover rate		117%			228%			310%			188%			283%			415%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Net investment income is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after voluntary expense waivers.

46    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

FUND PROFILE (Unaudited)

September 30, 2010

ENERGY SERVICES FUND

OBJECTIVE: Seeks to provide 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.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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.	12.9	%
Halliburton Co.	6.6	%
Transocean Ltd.	5.4	%
National Oilwell Varco, Inc.	5.1	%
Baker Hughes, Inc.	4.6	%
Weatherford International Ltd.	4.2	%
Cameron International Corp.	3.7	%
FMC Technologies, Inc.	3.5	%
Diamond Offshore Drilling, Inc.	3.4	%
Noble Corp.	3.3	%
Top Ten Total	52.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    47

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  ENERGY SERVICES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.3%
ENERGY - 99.3%
Schlumberger Ltd.		126,398	$	7,787,380
Halliburton Co.		121,283		4,010,828
Transocean Ltd.*		51,520		3,312,221
National Oilwell Varco, Inc.		69,789		3,103,517
Baker Hughes, Inc.		65,056		2,771,386
Weatherford International Ltd.*		147,600		2,523,960
Cameron International Corp.*		52,841		2,270,049
FMC Technologies, Inc.*		31,141		2,126,619
Diamond Offshore Drilling, Inc.		30,865		2,091,721
Noble Corp.		59,750		2,018,953
Ensco plc ADR		37,445		1,674,915
Pride International, Inc.*		55,527		1,634,160
Core Laboratories N.V.		15,796		1,390,680
Nabors Industries Ltd.*		76,068		1,373,788
Rowan Companies, Inc.*		45,043		1,367,505
Helmerich & Payne, Inc.		32,585		1,318,389
Tenaris S.A. ADR		33,948		1,304,282
Oceaneering International, Inc.*		22,295		1,200,809
Dresser-Rand Group, Inc.*		31,990		1,180,111
Dril-Quip, Inc.*		18,825		1,169,221
Patterson-UTI Energy, Inc.		67,329		1,149,979
Superior Energy Services, Inc.*		40,754		1,087,724
Oil States International, Inc.*		21,980		1,023,169

			MARKET
	SHARES		VALUE
Tidewater, Inc.		22,750	$	1,019,428
Atwood Oceanics, Inc.*		32,508		989,869
Complete Production Services, Inc.*		47,687		975,199
CARBO Ceramics, Inc.		11,459		928,179
Unit Corp.*		21,158		788,982
Exterran Holdings, Inc.*		31,476		714,820
Helix Energy Solutions Group, Inc.*		61,573		685,923
Key Energy Services, Inc.*		70,809		673,394
SEACOR Holdings, Inc.*		7,622		649,090
Lufkin Industries, Inc.		14,237		625,004
Bristow Group, Inc.*		16,898		609,680
Hornbeck Offshore Services, Inc.*		28,068		547,045
Precision Drilling Corp.*		78,697		539,074
Tetra Technologies, Inc.*		47,235		481,797
Gulfmark Offshore, Inc. — Class A*		12,063		370,575
Global Industries Ltd.*		62,982		344,512
Willbros Group, Inc.*		37,462		343,527
Total Energy				60,177,464
Total Common Stocks (Cost $31,069,485)				60,177,464
Total Investments - 99.3% (Cost $31,069,485)			$	60,177,464
Cash & Other Assets, Less Liabilities – 0.7%				400,252
Total Net Assets – 100.0%			$	60,577,716

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company

48    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ENERGY SERVICES FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	60,177,464
Total investments		60,177,464
Receivables:
Securities sold		471,156
Fund shares sold		7,286,547
Dividends		21,704
Total assets		67,956,871
Liabilities:
Overdraft due to custodian bank		234,698
Payable for:
Securities purchased		5,616,951
Fund shares redeemed		1,429,330
Management fees		34,509
Custodian fees		1,449
Transfer agent/maintenance fees		10,150
Distribution and service fees		11,554
Portfolio accounting fees		4,060
Other		36,454
Total liabilities		7,379,155
Net assets	$	60,577,716
Net assets consist of:
Paid in capital		94,471,735
Accumulated net investment loss		(173,904	)
Accumulated net realized loss on sale of investments		(62,828,094	)
Net unrealized appreciation in value of investments		29,107,979
Net assets		60,577,716
Investor Class:
Net assets	$	34,747,593
Capital shares outstanding		816,071
Net asset value per share		$42.58
Advisor Class:
Net assets	$	5,752,578
Capital shares outstanding		143,200
Net asset value per share		$40.17
A-Class:
Net assets	$	8,962,644
Capital shares outstanding		219,517
Net asset value per share		$40.83
Maximum offering price per share*		$42.87
C-Class:
Net assets	$	11,114,901
Capital shares outstanding		286,494
Net asset value per share		$38.80
Investments, at cost	$	31,069,485
Total cost	$	31,069,485

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $1,767)	$	315,134
Interest		299
Total investment income		315,433
Expenses:
Management fees		254,093
Transfer agent and administrative fees		74,733
Distribution and Service Fees:
Advisor Class		15,229
A-Class		10,603
C-Class		51,294
Portfolio accounting fees		29,893
Trustees’ fees**		2,768
Registration		27,894
Miscellaneous		22,830
Total expenses		489,337
Net investment loss		(173,904	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		4,940,358
Net realized gain		4,940,358
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(9,746,922	)
Net unrealized depreciation		(9,746,922	)
Net loss		(4,806,564	)
Net decrease in net assets resulting from operations	$	(4,980,468	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    49

  ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(173,904	)	$	(260,197	)
Net realized gain (loss) during the period on investments		4,940,358			(3,669,197	)
Net unrealized appreciation (depreciation) during the period on investments		(9,746,922	)		27,010,971
Net increase (decrease) in net assets resulting from operations		(4,980,468	)		23,081,577
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		90,323,770			423,854,073
Advisor Class		20,720,091			74,622,197
A-Class		2,474,005			11,759,367
C-Class		35,134,877			90,977,214
Cost of shares redeemed
Investor Class		(100,985,287	)		(447,317,610	)
Advisor Class		(21,174,117	)		(77,173,599	)
A-Class		(2,283,496	)		(10,636,373	)
C-Class		(34,669,951	)		(94,028,572	)
Net decrease from capital share transactions		(10,460,108	)		(27,943,303	)
Net decrease in net assets		(15,440,576	)		(4,861,726	)
Net assets:
Beginning of period		76,018,292			80,880,018
End of period	$	60,577,716		$	76,018,292
Accumulated net investment loss at end of period	$	(173,904	)	$	—
Capital share activity:
Shares sold
Investor Class		2,198,964			10,928,957
Advisor Class		538,271			2,065,711
A-Class		62,254			330,237
C-Class		930,591			2,570,094
Shares redeemed
Investor Class		(2,535,477	)		(12,157,631	)
Advisor Class		(558,787	)		(2,198,134	)
A-Class		(60,562	)		(316,274	)
C-Class		(926,091	)		(2,684,708	)
Total capital share activity		(350,837	)		(1,461,748	)

50    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ENERGY SERVICES FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$42.83			$25.07			$58.04			$47.47			$45.05			$30.12
Income (loss) from investment operations:
Net investment lossb		(.07	)		(.01	)		(.24	)		(.43	)		(.36	)		(.30	)
Net gain (loss) on securities (realized and unrealized)		(.18	)		17.77			(32.73	)		11.00			2.78			15.23
Total from investment operations		(.25	)		17.76			(32.97	)		10.57			2.42			14.93
Net asset value, end of period		$42.58			$42.83			$25.07			$58.04			$47.47			$45.05
Total Returnc		(0.61%	)		70.84%			(56.81%	)		22.27%			5.37%			49.57%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$34,748			$49,371			$59,706			$82,691			$91,095			$147,439
Ratios to average net assets:
Net investment loss		(0.32%	)		(0.01%	)		(0.48%	)		(0.77%	)		(0.80%	)		(0.81%	)
Total expenses		1.38%			1.38%			1.37%			1.37%			1.36%			1.35%
Portfolio turnover rate		136%			472%			207%			193%			196%			324%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$40.50			$23.83			$55.45			$45.58			$43.46			$29.21
Income (loss) from investment operations:
Net investment lossb		(.15	)		(.26	)		(.43	)		(.69	)		(.58	)		(.47	)
Net gain (loss) on securities (realized and unrealized)		(.18	)		16.93			(31.19	)		10.56			2.70			14.72
Total from investment operations		(.33	)		16.67			(31.62	)		9.87			2.12			14.25
Net asset value, end of period		$40.17			$40.50			$23.83			$55.45			$45.58			$43.46
Total Returnc		(0.81%	)		69.95%			(57.02%	)		21.65%			4.88%			48.78%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,753			$6,631			$7,058			$15,929			$18,237			$44,033
Ratios to average net assets:
Net investment loss		(0.77%	)		(0.70%	)		(0.92%	)		(1.28%	)		(1.35%	)		(1.33%	)
Total expenses		1.88%			1.88%			1.88%			1.87%			1.86%			1.85%
Portfolio turnover rate		136%			472%			207%			193%			196%			324%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    51

  ENERGY SERVICES FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$41.12			$24.13			$55.99			$45.90			$43.67			$29.25
Income (loss) from investment operations:
Net investment lossb		(.11	)		(.16	)		(.31	)		(.55	)		(.41	)		(.39	)
Net gain (loss) on securities (realized and unrealized)		(.18	)		17.15			(31.55	)		10.64			2.64			14.81
Total from investment operations		(.29	)		16.99			(31.86	)		10.09			2.23			14.42
Net asset value, end of period		$40.83			$41.12			$24.13			$55.99			$45.90			$43.67
Total Returnc		(0.71%	)		70.41%			(56.90%	)		21.98%			5.11%			49.30%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,963			$8,957			$4,920			$11,450			$6,151			$6,569
Ratios to average net assets:
Net investment loss		(0.58%	)		(0.43%	)		(0.68%	)		(1.01%	)		(0.97%	)		(1.00%	)
Total expenses		1.63%			1.63%			1.63%			1.62%			1.61%			1.63%
Portfolio turnover rate		136%			472%			207%			193%			196%			324%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$39.22			$23.19			$54.22			$44.79			$42.92			$28.98
Income (loss) from investment operations:
Net investment lossb		(.25	)		(.44	)		(.64	)		(.93	)		(.74	)		(.65	)
Net gain (loss) on securities (realized and unrealized)		(.17	)		16.47			(30.39	)		10.36			2.61			14.59
Total from investment operations		(.42	)		16.03			(31.03	)		9.43			1.87			13.94
Net asset value, end of period		$38.80			$39.22			$23.19			$54.22			$44.79			$42.92
Total Returnc		(1.07%	)		69.12%			(57.23%	)		21.05%			4.36%			48.10%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,115			$11,059			$9,196			$29,316			$24,500			$27,542
Ratios to average net assets:
Net investment income (loss)		(1.35%	)		(1.25%	)		(1.41%	)		(1.76%	)		(1.77%	)		(1.82%	)
Total expenses		2.38%			2.38%			2.38%			2.37%			2.36%			2.36%
Portfolio turnover rate		136%			472%			207%			193%			196%			324%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

52    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

FUND PROFILE (Unaudited)

September 30, 2010

FINANCIAL SERVICES FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the financial services sector.

Inception: April 2, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Berkshire Hathaway, Inc. — Class B	3.4	%
JPMorgan Chase & Co.	2.9	%
Wells Fargo & Co.	2.6	%
Bank of America Corp.	2.5	%
Goldman Sachs Group, Inc.	2.3	%
American Express Co.	1.6	%
U.S. Bancorp	1.5	%
BlackRock, Inc. — Class A	1.4	%
Morgan Stanley	1.4	%
Bank of New York Mellon Corp.	1.4	%
Top Ten Total	21.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    53

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  FINANCIAL SERVICES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
FINANCIALS - 99.5%
Berkshire Hathaway, Inc. — Class B*		4,788	$	395,871
JPMorgan Chase & Co.		8,833		336,273
Wells Fargo & Co.		11,881		298,569
Bank of America Corp.		21,859		286,571
Goldman Sachs Group, Inc.		1,715		247,954
American Express Co.		4,652		195,523
U.S. Bancorp		7,914		171,101
BlackRock, Inc. — Class A		956		162,759
Morgan Stanley		6,498		160,371
Bank of New York Mellon Corp.		5,959		155,709
MetLife, Inc.		3,871		148,841
Aflac, Inc.		2,844		147,063
Simon Property Group, Inc.		1,574		145,973
American International Group, Inc.*		3,731		145,882
Franklin Resources, Inc.		1,362		145,598
Itau Unibanco Holding S.A. ADR		5,888		142,372
Travelers Companies, Inc.		2,664		138,794
Banco Bradesco S.A. ADR		6,719		136,933
ICICI Bank Ltd. ADR		2,733		136,240
Prudential Financial, Inc.		2,427		131,495
PNC Financial Services Group, Inc.		2,527		131,176
ACE Ltd.		2,192		127,684
Chubb Corp.		2,152		122,642
State Street Corp.		3,192		120,211
Royal Bank of Canada		2,247		117,136
HDFC Bank Ltd. ADR		634		116,891
Public Storage		1,199		116,351
Allstate Corp.		3,674		115,915
UBS AG		6,768		115,259
Loews Corp.		3,035		115,027
Banco Santander Brasil S.A. ADR		8,221		113,203
Capital One Financial Corp.		2,852		112,797
Vornado Realty Trust		1,309		111,958
HSBC Holdings plc ADR		2,185		110,539
Toronto-Dominion Bank		1,521		109,907
Banco Santander S.A. ADR		8,563		108,408
Charles Schwab Corp.		7,730		107,447
Ameriprise Financial, Inc.		2,218		104,978
Progressive Corp.		4,982		103,974
CME Group, Inc. — Class A		398		103,660
BB&T Corp.		4,219		101,594
Equity Residential		2,127		101,181
Marsh & McLennan Companies, Inc.		4,184		100,918
Credit Suisse Group AG ADR		2,335		99,378
T. Rowe Price Group, Inc.		1,984		99,329
SunTrust Banks, Inc.		3,792		97,947
Boston Properties, Inc.		1,150		95,588
Barclays plc ADR		5,025		94,721
Northern Trust Corp.		1,902		91,752
HCP, Inc.		2,530		91,029
Discover Financial Services		5,403		90,122

			MARKET
	SHARES		VALUE
Invesco Ltd.		4,176	$	88,656
AON Corp.		2,254		88,154
Deutsche Bank AG		1,594		87,558
Annaly Capital Management, Inc.		4,918		86,557
China Life Insurance Company Ltd. ADR		1,426		84,818
TD Ameritrade Holding Corp.*		5,206		84,077
Hartford Financial Services Group, Inc.		3,658		83,951
Host Hotels & Resorts, Inc.		5,659		81,942
Regions Financial Corp.		11,197		81,402
XL Group plc — Class A		3,752		81,268
CIT Group, Inc.*		1,988		81,150
Fifth Third Bancorp		6,724		80,890
Ventas, Inc.		1,538		79,315
AvalonBay Communities, Inc.		761		79,091
Principal Financial Group, Inc.		3,021		78,304
M&T Bank Corp.		956		78,210
CNA Financial Corp.*		2,733		76,497
Bank of Montreal		1,316		75,999
Moody’s Corp.		2,990		74,690
NYSE Euronext		2,583		73,796
Unum Group		3,281		72,674
New York Community Bancorp, Inc.		4,472		72,670
IntercontinentalExchange, Inc.*		683		71,524
KeyCorp		8,958		71,306
CB Richard Ellis Group, Inc. — Class A*		3,899		71,274
Kimco Realty Corp.		4,523		71,237
PartnerRe Ltd.		886		71,040
Comerica, Inc.		1,866		69,322
Health Care REIT, Inc.		1,450		68,643
Lincoln National Corp.		2,868		68,603
Leucadia National Corp.		2,890		68,262
Hudson City Bancorp, Inc.		5,498		67,405
ProLogis		5,618		66,180
Everest Re Group Ltd.		762		65,890
Macerich Co.		1,520		65,284
Plum Creek Timber Company, Inc.		1,802		63,611
SLM Corp.*		5,482		63,317
Federal Realty Investment Trust		775		63,287
Lazard Ltd. — Class A		1,787		62,688
Digital Realty Trust, Inc.		1,016		62,687
General Growth Properties, Inc.		4,002		62,431
Genworth Financial, Inc. — Class A*		5,023		61,381
Assurant, Inc.		1,497		60,928
SL Green Realty Corp.		954		60,417
Nationwide Health Properties, Inc.		1,555		60,132
Cincinnati Financial Corp.		2,080		60,008
Legg Mason, Inc.		1,965		59,559
Arch Capital Group Ltd.*		705		59,079
Torchmark Corp.		1,085		57,657
People’s United Financial, Inc.		4,398		57,570
AMB Property Corp.		2,169		57,413

54    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  FINANCIAL SERVICES FUND

			MARKET
	SHARES		VALUE
Manulife Financial Corp.		4,540	$	57,340
Axis Capital Holdings Ltd.		1,738		57,250
NASDAQ OMX Group, Inc.*		2,859		55,550
WR Berkley Corp.		2,040		55,223
Jefferies Group, Inc.		2,398		54,411
Huntington Bancshares, Inc.		9,531		54,041
Liberty Property Trust		1,645		52,476
SEI Investments Co.		2,573		52,335
Marshall & Ilsley Corp.		7,344		51,702
Eaton Vance Corp.		1,727		50,152
Zions Bancorporation		2,285		48,808
Total Financials				11,407,706
Total Common Stocks
(Cost $8,586,697)				11,407,706

	FACE		MARKET
	AMOUNT		VALUE
RIGHTS†† - 0.0%
FINANCIALS - 0.0%
Deutsche Bank AG,
Expires, 09/30/10		$1,074	$	4,425
Total Rights
(Cost $5,735)				4,425
Total Investments - 99.5%
(Cost $8,592,432)			$	11,412,131
Cash & Other Assets, Less Liabilities – 0.5%				54,837
Total Net Assets – 100.0%			$	11,466,968

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
	ADR — American Depository Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    55

  FINANCIAL SERVICES FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	11,412,131
Total investments		11,412,131
Receivables:
Fund shares sold		3,590,552
Dividends		11,849
Total assets		15,014,532
Liabilities:
Overdraft due to custodian bank		13,501
Payable for:
Securities purchased		3,478,164
Fund shares redeemed		35,265
Management fees		5,875
Custodian fees		288
Transfer agent/maintenance fees		1,728
Distribution and service fees		2,290
Portfolio accounting fees		691
Other		9,762
Total liabilities		3,547,564
Net assets	$	11,466,968
Net assets consist of:
Paid in capital		16,437,487
Undistributed net investment income		124,356
Accumulated net realized loss on sale of investments		(7,914,574	)
Net unrealized appreciation in value of investments		2,819,699
Net assets		11,466,968
Investor Class:
Net assets	$	6,894,472
Capital shares outstanding		96,131
Net asset value per share		$71.72
Advisor Class:
Net assets	$	1,942,191
Capital shares outstanding		28,651
Net asset value per share		$67.79
A-Class:
Net assets	$	1,407,716
Capital shares outstanding		20,426
Net asset value per share		$68.92
Maximum offering price per share*		$72.36
C-Class:
Net assets	$	1,222,589
Capital shares outstanding		18,736
Net asset value per share		$65.25
Investments, at cost	$	8,592,432
Total cost	$	8,592,432

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,106)	$	119,091
Interest		91
Total investment income		119,182
Expenses:
Management fees		66,615
Transfer agent and administrative fees		19,593
Distribution and Service Fees:
Advisor Class		5,467
A-Class		1,798
C-Class		8,346
Portfolio accounting fees		7,837
Trustees’ fees**		906
Registration		7,350
Miscellaneous		5,976
Total expenses		123,888
Net investment loss		(4,706	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		3,601,854
Net realized gain		3,601,854
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(5,891,459	)
Net unrealized depreciation		(5,891,459	)
Net loss		(2,289,605	)
Net decrease in net assets resulting from operations	$	(2,294,311	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

56    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(4,706	)	$	129,311
Net realized gain during the period on investments		3,601,854			3,945,234
Net unrealized appreciation (depreciation) during the period on investments		(5,891,459	)		7,333,150
Net increase (decrease) in net assets resulting from operations		(2,294,311	)		11,407,695
Distributions to shareholders from:
Net investment income
Investor Class		—			(161,423	)
Advisor Class		—			(16,765	)
A-Class		—			(18,842	)
C-Class		—			(19,410	)
Total distributions to shareholders		—			(216,440	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		33,314,814			97,528,492
Advisor Class		7,713,837			15,582,018
A-Class		2,208,548			3,005,218
C-Class		12,996,143			22,146,643
Distributions reinvested
Investor Class		—			159,275
Advisor Class		—			16,668
A-Class		—			17,247
C-Class		—			18,363
Cost of shares redeemed
Investor Class		(51,079,777	)		(92,412,709	)
Advisor Class		(8,920,673	)		(16,437,842	)
A-Class		(2,112,778	)		(5,229,362	)
C-Class		(13,358,085	)		(22,643,373	)
Net increase (decrease) from capital share transactions		(19,237,971	)		1,750,638
Net increase (decrease) in net assets		(21,532,282	)		12,941,893
Net assets:
Beginning of period		32,999,250			20,057,357
End of period	$	11,466,968		$	32,999,250
Undistributed net investment income at end of period	$	124,356		$	129,062
Capital share activity:
Shares sold
Investor Class		458,214			1,499,575
Advisor Class		114,952			264,201
A-Class		32,211			47,120
C-Class		198,163			364,549
Shares reinvested
Investor Class		—			2,367
Advisor Class		—			261
A-Class		—			266
C-Class		—			298
Shares redeemed
Investor Class		(712,524	)		(1,450,270	)
Advisor Class		(132,388	)		(282,482	)
A-Class		(31,237	)		(90,609	)
C-Class		(207,657	)		(370,922	)
Total capital share activity		(280,266	)		(15,646	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    57

  FINANCIAL SERVICES FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010a			2010e			2009e			2008e			2007e			2006e
Per Share Data
Net asset value, beginning of period		$75.23			$44.37			$101.80			$142.50			$132.60			$114.00
Income (loss) from investment operations:
Net investment incomeb		.03			.41			1.60			1.70			1.40			1.70
Net gain (loss) on securities (realized and unrealized)		(3.54	)		31.07			(57.13	)		(40.20	)		9.14			18.10
Total from investment operations		(3.51	)		31.48			(55.53	)		(38.50	)		10.54			19.80
Less distributions:
Distributions from net investment income		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Total distributions		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Net asset value, end of period		$71.72			$75.23			$44.37			$101.80			$142.50			$132.60
Total Returnc		(4.67%	)		71.12%			(54.76%	)		(27.26%	)		7.94%			17.42%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,894			$26,364			$13,257			$4,640			$22,658			$12,226
Ratios to average net assets:
Net investment income		0.09%			0.64%			2.16%			1.25%			1.03%			1.32%
Total expenses		1.38%			1.38%			1.37%			1.38%			1.34%			1.36%
Net expensesd		1.38%			1.38%			1.37%			1.38%			1.34%			1.34%
Portfolio turnover rate		253%			447%			755%			913%			534%			821%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a			2010e			2009e			2008e			2007e			2006e
Per Share Data
Net asset value, beginning of period		$71.29			$42.28			$97.80			$137.60			$128.80			$111.30
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		.12			1.30			.90			.70			1.00
Net gain (loss) on securities (realized
and unrealized)		(3.39	)		29.51			(54.92	)		(38.50	)		8.74			17.70
Total from investment operations		(3.50	)		29.63			(53.62	)		(37.60	)		9.44			18.70
Less distributions:
Distributions from net investment income		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Total distributions		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Net asset value, end of period		$67.79			$71.29			$42.28			$97.80			$137.60			$128.80
Total Returnc		(4.91%	)		70.26%			(55.06%	)		(27.58%	)		7.32%			16.85%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,942			$3,285			$2,710			$1,957			$16,786			$6,801
Ratios to average net assets:
Net investment income (loss)		(0.32%	)		0.21%			1.83%			0.70%			0.54%			0.82%
Total expenses		1.88%			1.88%			1.88%			1.89%			1.84%			1.85%
Net expensesd		1.88%			1.88%			1.88%			1.89%			1.84%			1.83%
Portfolio turnover rate		253%			447%			755%			913%			534%			821%

58    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  FINANCIAL SERVICES FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010		e	2009		e	2008		e	2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$72.38			$42.80			$98.60			$138.20			$129.10			$111.30
Income (loss) from investment operations:
Net investment incomeb		.02			.30			1.30			1.60			1.00			1.40
Net gain (loss) on securities (realized and unrealized)		(3.48	)		29.90			(55.20	)		(39.00	)		8.74			17.60
Total from investment operations		(3.46	)		30.20			(53.90	)		(37.40	)		9.74			19.00
Less distributions:
Distributions from net investment income		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Total distributions		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Net asset value, end of period		$68.92			$72.38			$42.80			$98.60			$138.20			$129.10
Total Returnc		(4.78%	)		70.74%			(54.92%	)		(27.32%	)		7.54%			17.12%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,408			$1,408			$2,683			$1,367			$1,107			$4,295
Ratios to average net assets:
Net investment income		0.05%			0.50%			1.97%			1.42%			0.74%			1.18%
Total expenses		1.63%			1.63%			1.62%			1.59%			1.61%			1.65%
Net expensesd		1.63%			1.63%			1.62%			1.59%			1.61%			1.64%
Portfolio turnover rate		253%			447%			755%			913%			534%			821%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010		e	2009		e	2008		e	2007		e	2006		e
Per Share Data
Net asset value, beginning of period		$68.79			$41.01			$95.10			$134.60			$126.70			$110.10
Income (loss) from investment operations:
Net investment income (loss)b		(.25	)		(.24	)		.80			.50			.10			.10
Net gain (loss) on securities (realized and unrealized)		(3.29	)		28.64			(52.99	)		(37.80	)		8.44			17.70
Total from investment operations		(3.54	)		28.40			(52.19	)		(37.30	)		8.54			17.80
Less distributions:
Distributions from net investment income		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Total distributions		—			(.62	)		(1.90	)		(2.20	)		(.64	)		(1.20	)
Net asset value, end of period		$65.25			$68.79			$41.01			$95.10			$134.60			$126.70
Total Returnc		(5.15%	)		69.44%			(55.16%	)		(27.98%	)		6.73%			16.21%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,223			$1,942			$1,407			$2,847			$5,382			$2,081
Ratios to average net assets:
Net investment income (loss)		(0.76%	)		(0.40%	)		1.13%			0.45%			0.06%			0.11%
Total expenses		2.38%			2.38%			2.38%			2.37%			2.34%			2.36%
Net expensesd		2.38%			2.38%			2.38%			2.37%			2.34%			2.34%
Portfolio turnover rate		253%			447%			755%			913%			534%			821%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net expense information reflects the expense ratios after voluntary expense waivers.
e	Per share amounts for the period:
	March 31, 2006 – April 19, 2009 have been restated to reflect a 1:10 reverse stock split effective April 20, 2009.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    59

FUND PROFILE (Unaudited)

September 30, 2010

HEALTH CARE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the health care industry.

Inception: April 17, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Johnson & Johnson	4.2	%
Pfizer, Inc.	3.9	%
Merck & Company, Inc.	3.5	%
Abbott Laboratories	2.9	%
Alcon, Inc.	2.3	%
Amgen, Inc.	2.2	%
Bristol-Myers Squibb Co.	2.2	%
Teva Pharmaceutical Industries Ltd. ADR	2.1	%
Eli Lilly & Co.	2.1	%
UnitedHealth Group, Inc.	2.1	%
Top Ten Total	27.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

60    |  THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  HEALTH CARE FUND  

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.6%
HEALTH CARE - 99.6%
Johnson & Johnson		18,235	$	1,129,840
Pfizer, Inc.		60,984		1,047,095
Merck & Company, Inc.		24,950		918,410
Abbott Laboratories		15,074		787,466
Alcon, Inc.		3,891		648,980
Amgen, Inc.*		11,073		610,233
Bristol-Myers Squibb Co.		21,786		590,618
Teva Pharmaceutical Industries Ltd. ADR		11,087		584,839
Eli Lilly & Co.		15,392		562,270
UnitedHealth Group, Inc.		16,009		562,075
Valeant Pharmaceuticals International, Inc.*		20,087		503,169
Medtronic, Inc.		14,221		477,540
Baxter International, Inc.		9,987		476,479
Gilead Sciences, Inc.*		13,253		471,939
Celgene Corp.*		7,699		443,539
Genzyme Corp.*		6,093		431,323
Express Scripts, Inc. — Class A*		8,640		420,767
WellPoint, Inc.*		7,416		420,042
Allergan, Inc.		5,968		397,051
Medco Health Solutions, Inc.*		7,264		378,164
Stryker Corp.		7,382		369,468
Covidien plc		9,140		367,337
Becton Dickinson and Co.		4,948		366,647
Thermo Fisher Scientific, Inc.*		7,394		354,024
Biogen Idec, Inc.*		6,195		347,663
Novartis AG ADR		5,859		337,889
McKesson Corp.		5,338		329,781
St. Jude Medical, Inc.*		7,847		308,701
Aetna, Inc.		9,732		307,629
Cardinal Health, Inc.		8,395		277,371
Forest Laboratories, Inc.*		8,879		274,627
AstraZeneca plc ADR		5,298		268,609
Zimmer Holdings, Inc.*		5,128		268,348
Hospira, Inc.*		4,692		267,491
CIGNA Corp.		7,459		266,883
Intuitive Surgical, Inc.*		921		261,325
GlaxoSmithKline plc ADR		6,584		260,200
Boston Scientific Corp.*		42,027		257,626
Quest Diagnostics, Inc.		5,044		254,571
Sanofi-Aventis S.A. ADR		7,656		254,562
Varian Medical Systems, Inc.*		4,195		253,798
Humana, Inc.*		5,050		253,712
Novo Nordisk A ADR		2,568		252,794
Laboratory Corporation of America Holdings*		3,116		244,388
Life Technologies Corp.*		5,184		242,041
CR Bard, Inc.		2,972		242,010
AmerisourceBergen Corp. — Class A		7,816		239,639

			MARKET
	SHARES		VALUE
Elan Corp. plc ADR*		41,532	$	238,809
DaVita, Inc.*		3,404		234,978
Cerner Corp.*		2,767		232,400
Shire plc ADR		3,442		231,578
Alexion Pharmaceuticals, Inc.*		3,502		225,389
Illumina, Inc.*		4,531		222,925
Perrigo Co.		3,440		220,917
Waters Corp.*		3,102		219,560
Vertex Pharmaceuticals, Inc.*		6,294		217,584
Dendreon Corp.*		5,078		209,112
Dr Reddys Laboratories, Ltd. ADR		6,460		208,141
Henry Schein, Inc.*		3,504		205,264
Human Genome Sciences, Inc.*		6,847		203,972
Mylan, Inc.*		10,816		203,449
Endo Pharmaceuticals Holdings, Inc.*		6,120		203,429
Mindray Medical International Ltd. ADR		6,680		197,528
CareFusion Corp.*		7,945		197,354
Warner Chilcott plc — Class A		8,692		195,048
Watson Pharmaceuticals, Inc.*		4,589		194,161
Cephalon, Inc.*		3,108		194,064
ResMed, Inc.*		5,818		190,889
DENTSPLY International, Inc.		5,740		183,508
Mettler-Toledo International, Inc.*		1,469		182,802
Hologic, Inc.*		11,096		177,647
IDEXX Laboratories, Inc.*		2,578		159,114
QIAGEN N.V.*		8,920		158,241
Universal Health Services, Inc. — Class B		4,030		156,606
United Therapeutics Corp.*		2,792		156,380
Patterson Companies, Inc.		5,375		153,994
Coventry Health Care, Inc.*		7,136		153,638
Talecris Biotherapeutics Holdings Corp.*		6,369		145,723
Beckman Coulter, Inc.		2,969		144,858
PerkinElmer, Inc.		6,055		140,113
Health Net, Inc.*		5,150		140,029
Pharmaceutical Product Development, Inc.		5,630		139,568
Covance, Inc.*		2,947		137,890
Community Health Systems, Inc.*		4,419		136,856
Omnicare, Inc.		5,679		135,615
Kinetic Concepts, Inc.*		3,667		134,139
Emergency Medical Services Corp. — Class A*		2,480		132,060
Mednax, Inc.*		2,437		129,892
Lincare Holdings, Inc.		4,777		119,855
Thoratec Corp.*		3,090		114,268
Total Health Care				27,270,320
Total Common Stocks (Cost $21,368,171)				27,270,320

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    61

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  HEALTH CARE FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 - 0.9%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$255,822	$	255,822
Total Repurchase Agreement (Cost $255,822)			$	255,822
Total Investments - 100.5% (Cost $21,623,993)			$	27,526,142
Liabilities, Less Cash & Other Assets - (0.5)%				(132,895	)
Total Net Assets - 100.0%			$	27,393,247

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4. ADR — American Depositary Receipt plc — Public Limited Company

62    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  HEALTH CARE FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	27,270,320
Repurchase agreement, at value		255,822
Total Investments		27,526,142
Cash		34,244
Receivables:
Fund shares sold		2,191,835
Dividends		26,732
Total assets		29,778,953
Liabilities:
Payable for:
Fund shares redeemed		2,357,833
Management fees		12,358
Custodian fees		480
Transfer agent/maintenance fees		3,635
Distribution and service fees		3,929
Portfolio accounting fees		1,454
Other		6,017
Total liabilities		2,385,706
Net Assets	$	27,393,247
Net assets consist of:
Paid in capital		29,609,442
Undistributed net investment income		15,417
Accumulated net realized loss on sale of investments		(8,133,761	)
Net unrealized appreciation in value of investments		5,902,149
Net assets		27,393,247
Investor Class:
Net assets	$	21,524,275
Capital shares outstanding		1,419,943
Net asset value per share		$15.16
Advisor Class:
Net assets	$	1,899,617
Capital shares outstanding		133,575
Net asset value per share		$14.22
A-Class:
Net assets	$	1,207,607
Capital shares outstanding		83,696
Net asset value per share		$14.43
Maximum offering price per share*		$15.15
C-Class:
Net assets	$	2,761,748
Capital shares outstanding		200,673
Net asset value per share		$13.76
Investments, at cost	$	21,368,171
Repurchase agreement, at cost		255,822
Total cost	$	21,623,993

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,185)	$	281,128
Interest		115
Total investment income		281,243
Expenses:
Management fees		145,594
Transfer agent and administrative fees		42,821
Distribution and Service Fees:
Advisor Class		5,886
A-Class		2,026
C-Class		21,698
Portfolio accounting fees		17,128
Trustees’ fees**		3,084
Registration		27,462
Audit and outside service fees		21,950
Miscellaneous		(21,823	)
Total expenses		265,826
Net investment income		15,417
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		14,422,058
Net realized gain		14,422,058
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		(17,503,686	)
Net unrealized depreciation		(17,503,686	)
Net loss		(3,081,628	)
Net decrease in net assets resulting from operations	$	(3,066,211	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    63

  HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	15,417		$	(98,128	)
Net realized gain during the period on investments		14,422,058			5,745,341
Net unrealized appreciation (depreciation) during the period on investments		(17,503,686	)		19,815,215
Net increase (decrease) in net assets resulting from operations		(3,066,211	)		25,462,428
Distributions to shareholders from:
Net investment income
Investor Class		—			(112,784	)
Advisor Class		—			(3,474	)
A-Class		—			(799	)
C-Class		—			(3,371	)
Total distributions to shareholders		—			(120,428	)
Capital share transactions:
Proceeds from sale of shares Investor Class		120,033,038			376,924,923
Advisor Class		15,895,897			26,624,310
A-Class		1,821,327			8,065,607
C-Class		56,157,796			72,011,485
Distributions reinvested Investor Class		—			110,294
Advisor Class		—			3,408
A-Class		—			773
C-Class		—			3,164
Cost of shares redeemed
Investor Class		(291,858,882	)		(217,426,813	)
Advisor Class		(17,224,529	)		(30,904,957	)
A-Class		(6,687,545	)		(3,245,485	)
C-Class		(61,322,526	)		(70,234,350	)
Net increase (decrease) from capital share transactions		(183,185,424	)		161,932,359
Net increase (decrease) in net assets		(186,251,635	)		187,274,359
Net assets:
Beginning of period		213,644,882			26,370,523
End of period	$	27,393,247		$	213,644,882
Undistributed net investment income at end of period	$	15,417		$	—
Capital share activity:
Shares sold Investor Class		8,051,159			27,251,381
Advisor Class		1,154,822			2,055,170
A-Class		123,937			550,092
C-Class		4,180,929			5,738,394
Shares reinvested Investor Class		—			7,596
Advisor Class		—			249
A-Class		—			56
C-Class		—			238
Shares redeemed Investor Class		(19,015,042	)		(16,118,063	)
Advisor Class		(1,252,299	)		(2,424,711	)
A-Class		(452,372	)		(231,279	)
C-Class		(4,563,415	)		(5,650,598	)
Total capital share activity		(11,772,281	)		11,178,525

64    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  HEALTH CARE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended		Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,		March 31,
Investor Class	2010		a	2010			2009			2008			2007		2006
Per Share Data
Net asset value, beginning of period		$15.80			$11.20			$14.28			$15.28			$14.54		$12.71
Income (loss) from investment operations:
Net investment income (loss)b		.01			(.01	)		.07			(.02	)		.03		(.05	)
Net gain (loss) on securities (realized and unrealized)		(.65	)		4.62			(3.15	)		(.98	)		.71		1.88
Total from investment operations		(.64	)		4.61			(3.08	)		(1.00	)		.74		1.83
Less distributions:
Distributions from net investment income		—			(.01	)		—			—			—		—
Total distributions		—			(.01	)		—			—			—		—
Net asset value, end of period		$15.16			$15.80			$11.20			$14.28			$15.28		$14.54
Total Returnc		(4.05%	)		41.17%			(21.57%	)		(6.54%	)		5.09%		14.40%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$21,524			$195,616			$13,920			$22,062			$33,878		$46,432
Ratios to average net assets:
Net investment income (loss)		0.13%			(0.04%	)		0.48%			(0.13%	)		0.23%		(0.35%	)
Total expenses		1.38%			1.37%			1.36%			1.37%			1.35%		1.33%
Portfolio turnover rate		249%			241%			745%			444%			545%		568%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.85			$10.58			$13.57			$14.59			$13.94			$12.25
Income (loss) from investment operations:
Net investment income (loss)b		.01			(.04	)		.01			(.09	)		(.05	)		(.12	)
Net gain (loss) on securities (realized and unrealized)		(.64	)		4.32			(3.00	)		(.93	)		.70			1.81
Total from investment operations		(.63	)		4.28			(2.99	)		(1.02	)		.65			1.69
Less distributions:
Distributions from net investment income		—			(.01	)		—			—			—			—
Total distributions		—			(.01	)		—			—			—			—
Net asset value, end of period		$14.22			$14.85			$10.58			$13.57			$14.59			$13.94
Total Returnc		(4.24%	)		40.46%			(22.03%	)		(6.99%	)		4.66%			13.80%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,900			$3,432			$6,353			$13,099			$17,327			$14,577
Ratios to average net assets:
Net investment income (loss)		0.14%			(0.33%	)		0.04%			(0.60%	)		(0.37%	)		(0.89%	)
Total expenses		1.88%			1.88%			1.93%			1.86%			1.85%			1.84%
Portfolio turnover rate		249%			241%			745%			444%			545%			568%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    65

  HEALTH CARE FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$15.05			$10.69			$13.68			$14.67			$13.98			$12.25
Income (loss) from investment operations:
Net investment income (loss)b		.02			(.03	)		.02			(.06	)		(.02	)		(.08	)
Net gain (loss) on securities (realized and unrealized)		(.64	)		4.40			(3.01	)		(.93	)		.71			1.81
Total from investment operations		(.62	)		4.37			(2.99	)		(.99	)		.69			1.73
Less distributions:
Distributions from net investment income		—			(.01	)		—			—			—			—
Total distributions		—			(.01	)		—			—			—			—
Net asset value, end of period		$14.43			$15.05			$10.69			$13.68			$14.67			$13.98
Total Returnc		(4.12%	)		40.88%			(21.86%	)		(6.75%	)		4.94%			14.12%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,208			$6,204			$997			$730			$818			$2,239
Ratios to average net assets:
Net investment income (loss)		0.29%			(0.25%	)		0.15%			(0.36%	)		(0.13%	)		(0.60%	)
Total expenses		1.62%			1.62%			1.63%			1.61%			1.60%			1.62%
Portfolio turnover rate		249%			241%			745%			444%			545%			568%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$14.39			$10.30			$13.28			$14.35			$13.79			$12.19
Income (loss) from investment operations:
Net investment lossb		(.02	)		(.11	)		(.08	)		(.16	)		(.10	)		(.18	)
Net gain (loss) on securities (realized and unrealized)		(.61	)		4.21			(2.90	)		(.91	)		.66			1.78
Total from investment operations		(.63	)		4.10			(2.98	)		(1.07	)		.56			1.60
Less distributions:
Distributions from net investment income		—			(.01	)		—			—			—			—
Total distributions		—			(.01	)		—			—			—			—
Net asset value, end of period		$13.76			$14.39			$10.30			$13.28			$14.35			$13.79
Total Returnc		(4.38%	)		39.81%			(22.44%	)		(7.46%	)		4.06%			13.13%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,762			$8,393			$5,101			$5,677			$8,720			$7,114
Ratios to average net assets:
Net investment loss		(0.27%	)		(0.91%	)		(0.65%	)		(1.12%	)		(0.73%	)		(1.39%	)
Total expenses		2.38%			2.38%			2.38%			2.37%			2.34%			2.34%
Portfolio turnover rate		249%			241%			745%			444%			545%			568%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

66    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

FUND PROFILE (Unaudited)

September 30, 2010

INTERNET FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that provide products or services designed for or related to the Internet.

Inception: April 6, 2000

Industry Diversification (Market Exposure as % of Net Assets)

“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 19, 2001

Ten Largest Holdings (% of Total Net Assets)
Google, Inc. — Class A	8.3	%
Cisco Systems, Inc.	6.8	%
QUALCOMM, Inc.	6.1	%
Amazon.com, Inc.	6.0	%
Baidu, Inc. ADR	4.5	%
eBay, Inc.	3.8	%
Time Warner, Inc.	3.6	%
Priceline.com, Inc.	3.4	%
Research In Motion Ltd.	2.9	%
Juniper Networks, Inc.	2.8	%
Top Ten Total	48.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    67

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INTERNET FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.4%
INFORMATION TECHNOLOGY - 78.4%
Google, Inc. — Class A*		27,108	$	14,253,115
Cisco Systems, Inc.*		534,482		11,705,156
QUALCOMM, Inc.		228,112		10,292,413
Baidu, Inc. ADR*		75,714		7,769,771
eBay, Inc.*		261,297		6,375,647
Research In Motion Ltd.*		101,201		4,927,477
Juniper Networks, Inc.*		154,488		4,688,711
Yahoo!, Inc.*		318,853		4,518,147
Broadcom Corp. — Class A		127,375		4,507,801
Intuit, Inc.*		97,752		4,282,515
Symantec Corp.*		247,736		3,758,155
F5 Networks, Inc.*		35,821		3,718,578
McAfee, Inc.*		74,519		3,521,768
Red Hat, Inc.*		82,376		3,377,416
Akamai Technologies, Inc.*		65,594		3,291,507
Check Point Software
Technologies Ltd.*		87,042		3,214,461
BMC Software, Inc.*		74,520		3,016,570
Netease.com ADR*		70,936		2,797,716
VeriSign, Inc.*		84,400		2,678,856
Equinix, Inc.*		23,554		2,410,752
TIBCO Software, Inc.*		127,149		2,255,623
Rackspace Hosting, Inc.*		85,939		2,232,695
Sina Corp.*		42,841		2,166,898
Open Text Corp.*		41,079		1,932,356
IAC/InterActiveCorp.*		73,207		1,923,148
AOL, Inc.*		73,089		1,808,953
WebMD Health Corp. — Class A*		35,882		1,789,435
OpenTable, Inc.*		22,014		1,498,713
Digital River, Inc.*		41,311		1,406,226
Monster Worldwide, Inc.*		104,300		1,351,728
Ciena Corp.*		86,291		1,343,551
VistaPrint N.V.*		31,310		1,210,132
GSI Commerce, Inc.*		47,730		1,178,931
SAVVIS, Inc.*		55,139		1,162,330
ValueClick, Inc.*		87,368		1,142,773
Earthlink, Inc.		122,019		1,109,153
Websense, Inc.*		49,395		876,267
Constant Contact, Inc.*		38,017		814,704
j2 Global Communications, Inc.*		29,990		713,462
Total Information Technology				133,023,610

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY - 18.8%
Amazon.com, Inc.*		64,157	$	10,076,498
Time Warner, Inc.		198,728		6,091,013
Priceline.com, Inc.*		16,796		5,850,719
Expedia, Inc.		127,492		3,596,549
NetFlix, Inc.*		21,779		3,531,683
Blue Nile, Inc.*		18,340		815,947
NutriSystem, Inc.		39,404		758,133
PetMed Express, Inc.		38,854		679,945
Overstock.com, Inc.*		34,990		550,043
Total Consumer Discretionary				31,950,530
TELECOMMUNICATION SERVICES - 2.2%
Qwest Communications
International, Inc.		607,740		3,810,530
Total Common Stocks (Cost $157,607,703)				168,784,670
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.9%
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/10	$	1,442,657		1,442,657
Total Repurchase Agreement (Cost $1,442,657)				1,442,657
Total Investments - 100.3% (Cost $159,050,360)			$	170,227,327
Liabilities, Less Cash & Other Assets – (0.3)%				(551,092	)
Total Net Assets – 100.0%			$	169,676,235

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt

68    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  INTERNET FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	168,784,670
Repurchase agreement, at value		1,442,657
Total investments		170,227,327
Receivables:
Fund shares sold		5,283,190
Interest		7
Total assets		175,510,524
Liabilities:
Payable for:
Securities purchased		5,238,502
Fund shares redeemed		514,854
Management fees		44,341
Custodian fees		1,721
Transfer agent/maintenance fees		13,042
Distribution and service fees		1,598
Portfolio accounting fees		5,216
Other		15,015
Total liabilities		5,834,289
Net assets	$	169,676,235
Net assets consist of:
Paid in capital		168,694,637
Accumulated net investment loss		(155,510	)
Accumulated net realized loss on sale of investments		(10,039,859	)
Net unrealized appreciation in value of investments		11,176,967
Net assets		169,676,235
Investor Class:
Net assets	$	163,823,723
Capital shares outstanding		3,648,134
Net asset value per share		$44.91
Advisor Class:
Net assets	$	2,350,811
Capital shares outstanding		55,372
Net asset value per share		$42.45
A-Class:
Net assets	$	1,126,352
Capital shares outstanding		26,126
Net asset value per share		$43.11
Maximum offering price per share*		$45.26
C-Class:
Net assets	$	2,375,349
Capital shares outstanding		58,161
Net asset value per share		$40.84
Investments, at cost	$	157,607,703
Repurchase agreement, at cost		1,442,657
Total cost	$	159,050,360

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends	$	37,242
Interest		182
Total investment income		37,424
Expenses:
Management fees		113,423
Transfer agent and administrative fees		33,359
Distribution and Service Fees:
Advisor Class		4,046
A-Class		1,024
C-Class		4,592
Portfolio accounting fees		13,344
Trustees’ fees**		879
Miscellaneous		22,267
Total expenses		192,934
Net investment loss		(155,510	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		1,920,632
Net realized gain		1,920,632
Net unrealized appreciation (depreciation) during the period on:
Investment securities		1,495,542
Net unrealized appreciation		1,495,542
Net realized and unrealized gain		3,416,174
Net increase in net assets resulting from operations	$	3,260,664

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    69

  INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(155,510	)	$	(528,956	)
Net realized gain during the period on investments		1,920,632			17,110,852
Net unrealized appreciation during the period on investments		1,495,542			4,224,318
Net increase in net assets resulting from operations		3,260,664			20,806,214
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		165,017,915			177,542,033
Advisor Class		6,067,081			24,730,965
A-Class		1,084,850			4,695,216
C-Class		26,298,569			41,013,515
Cost of shares redeemed
Investor Class		(26,435,215	)		(236,380,728	)
Advisor Class		(7,611,845	)		(25,593,202	)
A-Class		(3,052,994	)		(2,050,114	)
C-Class		(24,830,646	)		(40,927,304	)
Net increase (decrease) from capital share transactions		136,537,715			(56,969,619	)
Net increase (decrease) in net assets		139,798,379			(36,163,405	)
Net assets:
Beginning of period		29,877,856			66,041,261
End of period	$	169,676,235		$	29,877,856
Accumulated net investment loss at end of period	$	(155,510	)	$	—
Capital share activity:
Shares sold
Investor Class		3,786,438			5,313,352
Advisor Class		158,196			705,697
A-Class		27,825			127,396
C-Class		699,663			1,209,155
Shares redeemed
Investor Class		(663,511	)		(7,110,764	)
Advisor Class		(201,578	)		(749,250	)
A-Class		(76,213	)		(56,423	)
C-Class		(669,187	)		(1,205,994	)
Total capital share activity		3,061,633			(1,766,831	)

70    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

1

  INTERNET FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$41.74			$26.58			$38.55			$41.11			$40.22			$32.29
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.38	)		(.29	)		.46	d		(.44	)		(.40	)
Net gain (loss) on securities (realized and unrealized)		3.40			15.54			(11.23	)		(2.87	)		1.33			8.33
Total from investment operations		3.17			15.16			(11.52	)		(2.41	)		.89			7.93
Less distributions:
Distributions from net investment income		—			—			(.45	)		(.15	)		—			—
Total distributions		—			—			(.45	)		(.15	)		—			—
Net asset value, end of period		$44.91			$41.74			$26.58			$38.55			$41.11			$40.22
Total Returnc		7.59%			57.04%			(29.63%	)		(5.92%	)		2.21%			24.56%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$163,824			$21,924			$61,745			$4,365			$5,496			$16,288
Ratios to average net assets:
Net investment income (loss)		(1.10%	)		(1.12%	)		(1.01%	)		1.00%	e		(1.09%	)		(1.10%	)
Total expenses		1.37%			1.37%			1.35%			1.38%			1.37%			1.34%
Portfolio turnover rate		123%			443%			550%			870%			864%			1,371%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$39.57			$25.32			$36.95			$39.61			$38.94			$31.41
Income (loss) from investment operations:
Net investment lossb		(.31	)		(.58	)		(.41	)		(.09	)d		(.63	)		(.55	)
Net gain (loss) on securities (realized and unrealized)		3.19			14.83			(10.77	)		(2.42	)		1.30			8.08
Total from investment operations		2.88			14.25			(11.18	)		(2.51	)		.67			7.53
Less distributions:
Distributions from net investment income		—			—			(.45	)		(.15	)		—			—
Total distributions		—			—			(.45	)		(.15	)		—			—
Net asset value, end of period		$42.45			$39.57			$25.32			$36.95			$39.61			$38.94
Total Returnc		7.28%			56.28%			(29.99%	)		(6.40%	)		1.72%			23.97%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,351			$3,908			$3,604			$1,364			$863			$3,696
Ratios to average net assets:
Net investment loss		(1.59%	)		(1.74%	)		(1.43%	)		(0.21%	)e		(1.60%	)		(1.58%	)
Total expenses		1.88%			1.88%			1.87%			1.88%			1.87%			1.85%
Portfolio turnover rate		123%			443%			550%			870%			864%			1,371%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    71

2

  INTERNET FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$40.12			$25.62			$37.29			$39.87			$39.07			$31.45
Income (loss) from investment operations:
Net investment lossb		(.24	)		(.50	)		(.33	)		(.19	)d		(.52	)		(.50	)
Net gain (loss) on securities (realized and unrealized)		3.23			15.00			(10.89	)		(2.24	)		1.32			8.12
Total from investment operations		2.99			14.50			(11.22	)		(2.43	)		.80			7.62
Less distributions:
Distributions from net investment income		—			—			(.45	)		(.15	)		—			—
Total distributions		—			—			(.45	)		(.15	)		—			—
Net asset value, end of period		$43.11			$40.12			$25.62			$37.29			$39.87			$39.07
Total Returnc		7.45%			56.60%			(29.82%	)		(6.16%	)		2.05%			24.23%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,126			$2,989			$91			$116			$139			$470
Ratios to average net assets:
Net investment loss		(1.23%	)		(1.44%	)		(1.07%	)		(0.44%	)e		(1.37%	)		(1.36%	)
Total expenses		1.62%			1.63%			1.62%			1.63%			1.61%			1.63%
Portfolio turnover rate		123%			443%			550%			870%			864%			1,371%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$38.17			$24.56			$36.01			$38.79			$38.30			$31.06
Income (loss) from investment operations:
Net investment lossb		(.39	)		(.66	)		(.59	)		(.38	)d		(.78	)		(.73	)
Net gain (loss) on securities (realized and unrealized)		3.06			14.27			(10.41	)		(2.25	)		1.27			7.97
Total from investment operations		2.67			13.61			(11.00	)		(2.63	)		.49			7.24
Less distributions:
Distributions from net investment income		—			—			(.45	)		(.15	)		—			—
Total distributions		—			—			(.45	)		(.15	)		—			—
Net asset value, end of period		$40.84			$38.17			$24.56			$36.01			$38.79			$38.30
Total Returnc		7.00%			55.42%			(30.28%	)		(6.84%	)		1.28%			23.31%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,375			$1,057			$602			$1,608			$1,017			$2,273
Ratios to average net assets:
Net investment loss		(2.08%	)		(2.00%	)		(1.95%	)		(0.89%	)e		(2.10%	)		(2.09%	)
Total expenses		2.38%			2.38%			2.38%			2.37%			2.36%			2.35%
Portfolio turnover rate		123%			443%			550%			870%			864%			1,371%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net investment income per share includes $0.88, $0.84, $0.83, and $0.81 for Investor Class, Advisor Class, A-Class, and C-Class, respectively, resulting from a special dividend from Palm, Inc. on October 25, 2007.
e	Net investment income (loss) to average assets includes 1.91% for Investor Class, Advisor Class, A-Class, and C-Class, resulting from a special dividend from Palm, Inc. on October 25, 2007.

72    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

FUND PROFILE (Unaudited)

September 30, 2010

LEISURE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in leisure and entertainment businesses.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
McDonald’s Corp.	4.7	%
Walt Disney Co.	3.9	%
Comcast Corp. — Class A	3.6	%
DIRECTV — Class A	3.4	%
Carnival Corp.	3.0	%
News Corp. — Class A	3.0	%
Time Warner, Inc.	2.9	%
Las Vegas Sands Corp.	2.9	%
Yum! Brands, Inc.	2.5	%
Viacom, Inc. — Class B	2.4	%
Top Ten Total	32.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    73

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  LEISURE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.5%
CONSUMER DISCRETIONARY - 95.2%
McDonald’s Corp.		9,510	$	708,589
Walt Disney Co.		18,030		596,973
Comcast Corp. — Class A		29,493		533,233
DIRECTV — Class A*		12,116		504,389
Carnival Corp.		11,869		453,515
News Corp. — Class A*		33,661		439,613
Time Warner, Inc.		14,171		434,341
Las Vegas Sands Corp.*		12,008		418,478
Yum! Brands, Inc.		8,037		370,184
Viacom, Inc. — Class B		10,019		362,588
Time Warner Cable, Inc. — Class A		6,131		331,013
Starbucks Corp.		12,497		319,673
Marriott International, Inc. — Class A		7,762		278,112
Discovery Communications, Inc. — Class A*		6,224		271,054
McGraw-Hill Companies, Inc.		7,955		262,993
CBS Corp. — Class B		16,264		257,947
Starwood Hotels & Resorts Worldwide, Inc.		4,831		253,869
Wynn Resorts Ltd.		2,908		252,327
Virgin Media, Inc.		10,493		241,549
Liberty Global, Inc. — Class A*		7,518		231,630
Mattel, Inc.		9,705		227,679
Cablevision Systems Corp. — Class A		8,392		219,786
Scripps Networks Interactive, Inc. — Class A		4,608		219,249
DISH Network Corp. — Class A		11,097		212,619
Royal Caribbean Cruises Ltd.*		6,473		204,094
Harley-Davidson, Inc.		7,098		201,867
Thomson Reuters Corp.		5,365		201,349
Hasbro, Inc.		4,447		197,936
Liberty Media Corp.- Capital*		3,649		189,967
Chipotle Mexican Grill, Inc. — Class A*		1,101		189,372
Darden Restaurants, Inc.		4,310		184,382
Wyndham Worldwide Corp.		6,618		181,796
MGM Resorts International*		14,684		165,636
Ctrip.com International Ltd. ADR*		3,397		162,207
Burger King Holdings, Inc.		6,610		157,847
Liberty Media Corp. - Starz*		2,412		156,491
DreamWorks Animation SKG, Inc. — Class A*		4,442		141,744
International Game Technology		9,727		140,555
Washington Post Co. — Class B		341		136,199
Panera Bread Co. — Class A*		1,508		133,624
Grupo Televisa S.A. ADR		6,902		130,586
Melco Crown Entertainment Ltd. — Class Participation Certificate ADR*		25,050		127,505

			MARKET
	SHARES		VALUE
Tim Hortons, Inc.		3,470	$	126,343
Penn National Gaming, Inc.*		4,195		124,214
Choice Hotels International, Inc.		3,218		117,328
Brinker International, Inc.		6,187		116,687
Polaris Industries, Inc.		1,770		115,227
Gannett Company, Inc.		9,245		113,066
Cinemark Holdings, Inc.		6,478		104,296
WMS Industries, Inc.*		2,732		104,007
Regal Entertainment Group — Class A		7,867		103,215
Life Time Fitness, Inc.*		2,600		102,622
Bally Technologies, Inc.*		2,894		101,145
Central European Media Enterprises Ltd. — Class A*		4,036		100,698
Cheesecake Factory, Inc.*		3,716		98,363
Gaylord Entertainment Co.*		3,160		96,380
Valassis Communications, Inc.*		2,805		95,061
Meredith Corp.		2,723		90,703
Live Nation Entertainment, Inc.*		9,107		89,977
Vail Resorts, Inc.*		2,318		86,971
Madison Square Garden, Inc. — Class A*		4,113		86,702
Cracker Barrel Old Country Store, Inc.		1,655		84,008
Brunswick Corp.		5,462		83,132
Jack in the Box, Inc.*		3,874		83,059
Imax Corp.*		4,913		82,833
PF Chang’s China Bistro, Inc.		1,716		79,279
Texas Roadhouse, Inc. — Class A*		5,555		78,103
Ameristar Casinos, Inc.		4,386		76,536
Eastman Kodak Co.*		17,380		72,996
Pool Corp.		3,556		71,369
New York Times Co. — Class A*		9,196		71,177
Total Consumer Discretionary				14,160,057
INFORMATION TECHNOLOGY - 4.3%
Activision Blizzard, Inc.		25,108		271,668
Electronic Arts, Inc.*		10,857		178,381
Perfect World Company Ltd. ADR*		4,025		103,282
Shanda Interactive Entertainment Ltd. ADR*		2,260		88,479
Total Information Technology				641,810
Total Common Stocks (Cost $12,334,478)			$	14,801,867

74    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  LEISURE FUND

			MARKET
	SHARES		VALUE
WARRANTS†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc.
$12.21, 03/02/12		350	$	18
Total Warrants (Cost $—)				18
Total Investments - 99.5% (Cost $12,334,478)			$	14,801,885
Cash & Other Assets, Less Liabilities – 0.5%				75,335
Total Net Assets – 100.0%			$	14,877,220

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5. ADR — American Depository Receipt

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    75

  LEISURE FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	14,801,885
Total investments		14,801,885
Receivables:
Fund shares sold		4,207,501
Dividends		5,891
Total assets		19,015,277
Liabilities:
Overdraft due to custodian bank		5,850
Payable for:
Securities purchased		3,233,672
Fund shares redeemed		876,877
Management fees		8,548
Custodian fees		332
Transfer agent/maintenance fees		2,514
Distribution and service fees		1,614
Portfolio accounting fees		1,006
Other		7,644
Total liabilities		4,138,057
Net assets	$	14,877,220
Net assets consist of:
Paid in capital		19,564,032
Accumulated net investment loss		(52,887	)
Accumulated net realized loss on sale of investments		(7,101,332	)
Net unrealized appreciation in value of investments		2,467,407
Net assets		14,877,220
Investor Class:
Net assets	$	11,580,969
Capital shares outstanding		412,838
Net asset value per share		$28.05
Advisor Class:
Net assets	$	756,117
Capital shares outstanding		28,778
Net asset value per share		$26.27
A-Class:
Net assets	$	1,350,924
Capital shares outstanding		50,714
Net asset value per share		$26.64
Maximum offering price per share*		$27.97
C-Class:
Net assets	$	1,189,210
Capital shares outstanding		46,501
Net asset value per share		$25.57
Investments, at cost	$	12,334,478
Total cost	$	12,334,478

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $259)	$	77,110
Interest		107
Total investment income		77,217
Expenses:
Management fees		72,355
Transfer agent and administrative fees		21,281
Distribution and Service Fees:
Advisor Class		4,179
A-Class		1,656
C-Class		6,478
Portfolio accounting fees		8,512
Trustees’ fees**		809
Miscellaneous		14,834
Total expenses		130,104
Net investment loss		(52,887	)
Net Realized And Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(1,241,427	)
Net realized loss		(1,241,427	)
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		195,331
Net unrealized appreciation		195,331
Net loss		(1,046,096	)
Net decrease in net assets resulting from operations	$	(1,098,983	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

76    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(52,887	)	$	(845	)
Net realized gain (loss) during the period on investments		(1,241,427	)		503,279
Net unrealized appreciation during the period on investments		195,331			2,073,611
Net increase (decrease) in net assets resulting from operations		(1,098,983	)		2,576,045
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		86,925,820			53,130,447
Advisor Class		11,184,802			7,271,169
A-Class		1,720,844			1,301,093
C-Class		12,178,980			12,727,164
Cost of shares redeemed
Investor Class		(87,801,341	)		(46,005,393	)
Advisor Class		(11,264,647	)		(6,947,713	)
A-Class		(845,657	)		(954,546	)
C-Class		(11,838,280	)		(12,035,560	)
Net increase from capital share transactions		260,521			8,486,661
Net increase (decrease) in net assets		(838,462	)		11,062,706
Net assets:
Beginning of period		15,715,682			4,652,976
End of period	$	14,877,220		$	15,715,682
Accumulated net investment loss at end of period	$	(52,887	)	$	—
Capital share activity:
Shares sold
Investor Class		3,126,985			2,292,342
Advisor Class		438,115			366,181
A-Class		65,028			57,242
C-Class		480,203			640,225
Shares redeemed
Investor Class		(3,194,021	)		(2,080,802	)
Advisor Class		(452,382	)		(348,824	)
A-Class		(33,035	)		(40,237	)
C-Class		(470,579	)		(611,956	)
Total capital share activity		(39,686	)		274,171

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    77

  LEISURE FUND

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.

	Period Ended			Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,		March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010		2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$27.48			$15.40		$31.72			$35.87			$32.56			$30.50
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		.03		.01			.09			(—	)c		(.07	)
Net gain (loss) on securities (realized and unrealized)		.64			12.05		(16.33	)		(4.24	)		3.31			2.13
Total from investment operations		.57			12.08		(16.32	)		(4.15	)		3.31			2.06
Net asset value, end of period		$28.05			$27.48		$15.40			$31.72			$35.87			$32.56
Total Returnd		2.07%			78.44%		(51.45%	)		(11.57%	)		10.17%			6.75%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,581			$13,186		$4,132			$3,283			$9,130			$16,418
Ratios to average net assets:
Net investment income (loss)		(0.53%	)		0.13%		0.05%			0.24%			(0.01%	)		(0.25%	)
Total expenses		1.38%			1.37%		1.37%			1.39%			1.37%			1.34%
Portfolio turnover rate		599%			943%		1,529%			646%			675%			734%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.81			$14.53			$30.06			$34.14			$31.15			$29.34
Income (loss) from investment operations:
Net investment lossb		(.11	)		(.11	)		(.03	)		(.07	)		(.10	)		(.32	)
Net gain (loss) on securities (realized and unrealized)		.57			11.39			(15.50	)		(4.01	)		3.09			2.13
Total from investment operations		.46			11.28			(15.53	)		(4.08	)		2.99			1.81
Net asset value, end of period		$26.27			$25.81			$14.53			$30.06			$34.14			$31.15
Total Returnd		1.78%			77.63%			(51.66%	)		(11.95%	)		9.60%			6.17%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$756			$1,111			$373			$1,611			$4,903			$5,372
Ratios to average net assets:
Net investment loss		(0.86%	)		(0.56%	)		(0.11%	)		(0.22%	)		(0.32%	)		(1.10%	)
Total expenses		1.89%			1.88%			1.88%			1.89%			1.87%			1.80%
Portfolio turnover rate		599%			943%			1,529%			646%			675%			734%

78    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  LEISURE FUND

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.

	Period Ended			Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,		March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010		2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$26.13			$14.67		$30.30			$34.32			$31.24			$29.34
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		.17		(.04	)		(.07	)		(.14	)		(.14	)
Net gain (loss) on securities (realized and unrealized)		.58			11.29		(15.59	)		(3.95	)		3.22			2.04
Total from investment operations		.51			11.46		(15.63	)		(4.02	)		3.08			1.90
Net asset value, end of period		$26.64			$26.13		$14.67			$30.30			$34.32			$31.24
Total Returnd		1.95%			78.12%		(51.58%	)		(11.71%	)		9.86%			6.48%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,351			$489		$25			$206			$2,198			$68
Ratios to average net assets:
Net investment income (loss)		(0.51%	)		0.74%		(0.16%	)		(0.20%	)		(0.41%	)		(0.49%	)
Total expenses		1.63%			1.63%		1.63%			1.67%			1.60%			1.60%
Portfolio turnover rate		599%			943%		1,529%			646%			675%			734%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$25.19			$14.26			$29.66			$33.86			$31.05			$29.39
Income (loss) from investment operations:
Net investment lossb		(.17	)		(.22	)		(.18	)		(.28	)		(.31	)		(.40	)
Net gain (loss) on securities (realized and unrealized)		.55			11.15			(15.22	)		(3.92	)		3.12			2.06
Total from investment operations		.38			10.93			(15.40	)		(4.20	)		2.81			1.66
Net asset value, end of period		$25.57			$25.19			$14.26			$29.66			$33.86			$31.05
Total Returnd		1.51%			76.65%			(51.92%	)		(12.40%	)		9.05%			5.65%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,189			$929			$123			$430			$3,091			$997
Ratios to average net assets:
Net investment loss		(1.34%	)		(1.01%	)		(0.78%	)		(0.81%	)		(0.96%	)		(1.40%	)
Total expenses		2.38%			2.38%			2.38%			2.40%			2.36%			2.32%
Portfolio turnover rate		599%			943%			1,529%			646%			675%			734%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Net investment income is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    79

FUND PROFILE (Unaudited)

September 30, 2010

PRECIOUS METALS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in U.S. and foreign companies that are involved in the precious metals sector, including exploration, mining, production and development, and other precious metals related services.

Inception: December 1, 1993

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Freeport-McMoRan Copper & Gold, Inc. — Class B	14.4	%
Newmont Mining Co.	7.4	%
Barrick Gold Corp.	7.3	%
Goldcorp, Inc.	6.1	%
Agnico-Eagle Mines Ltd.	4.8	%
Silver Wheaton Corp.	4.7	%
Yamana Gold, Inc.	4.0	%
Southern Copper Co.	3.7	%
Kinross Gold Corp.	3.5	%
Randgold Resources Ltd. ADR	3.3	%
Top Ten Total	59.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

80    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  PRECIOUS METALS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.7%
MATERIALS - 99.7%
Freeport-McMoRan Copper & Gold, Inc. — Class B		381,500	$	32,576,285
Newmont Mining Co.		266,841		16,760,283
Barrick Gold Corp.		357,047		16,527,706
Goldcorp, Inc.		318,290		13,851,981
Agnico-Eagle Mines Ltd.		153,681		10,915,961
Silver Wheaton Corp.*		400,381		10,670,154
Yamana Gold, Inc.		789,659		9,002,113
Southern Copper Co.		236,017		8,288,917
Kinross Gold Corp.		415,002		7,797,888
Randgold Resources Ltd. ADR		74,099		7,518,084
Gold Fields Ltd. ADR		464,546		7,093,617
Eldorado Gold Corp.		378,600		7,000,314
AngloGold Ashanti Ltd. ADR		150,260		6,948,022
Hecla Mining Co.*		1,057,627		6,684,203
Coeur d’Alene Mines Corp.*		335,141		6,676,009
Titanium Metals Corp.*		317,447		6,336,242
Stillwater Mining Co.*		352,931		5,943,358
IAMGOLD Corp.		329,506		5,835,551
Cia de Minas Buenaventura S.A. ADR		128,779		5,818,235
Harmony Gold Mining Company Ltd. ADR		413,549		4,668,968
Pan American Silver Corp.		155,870		4,612,193
Newcrest Mining, Ltd. ADR		116,130		4,471,005
Royal Gold, Inc.		79,438		3,959,190
Silver Standard Resources, Inc.*		127,916		2,555,762
Gammon Gold, Inc.*		331,163		2,321,453
Silvercorp Metals, Inc.		279,280		2,312,438
Novagold Resources, Inc.*		263,165		2,300,062
New Gold, Inc.*		275,500		1,854,115
Allied Nevada Gold Corp.*		59,808		1,584,912
Seabridge Gold, Inc.*		50,519		1,448,885
Jaguar Mining, Inc.*		178,856		1,162,564
Total Materials				225,496,470
Total Common Stocks (Cost $104,302,528)				225,496,470

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 - 0.4%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$901,519	$	901,519
Total Repurchase Agreement (Cost $901,519)				901,519
Total Investments - 100.1% (Cost $105,204,047)			$	226,397,989
Liabilities, Less Cash & Other Assets – (0.1)%				(176,051	)
Total Net Assets – 100.0%			$	226,221,938

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    81

2

  PRECIOUS METALS FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	225,496,470
Repurchase agreement, at value		901,519
Total investments		226,397,989
Cash		38,879
Receivables:
Fund shares sold		38,469,409
Dividends		38,086
Total assets		264,944,363
Liabilities:
Payable for:
Securities purchased		35,328,727
Fund shares redeemed		3,066,202
Management fees		115,140
Custodian fees		5,166
Transfer agent/maintenance fees		38,380
Distribution and service fees		37,248
Portfolio accounting fees		15,352
Other		116,210
Total liabilities		38,722,425
Net assets	$	226,221,938
Net assets consist of:
Paid in capital		167,030,807
Accumulated net investment loss		(711,340	)
Accumulated net realized loss on sale of investments		(61,291,471	)
Net unrealized appreciation in value of investments		121,193,942
Net assets		226,221,938
Investor Class:
Net assets	$	161,154,151
Capital shares outstanding		2,146,137
Net asset value per share		$75.09
Advisor Class:
Net assets	$	15,167,035
Capital shares outstanding		209,063
Net asset value per share		$72.55
A-Class:
Net assets	$	16,358,749
Capital shares outstanding		222,124
Net asset value per share		$73.65
Maximum offering price per share*		$77.32
C-Class:
Net assets	$	33,542,003
Capital shares outstanding		489,867
Net asset value per share		$68.47
Investments, at cost	$	104,302,528
Repurchase agreement, at cost		901,519
Total cost	$	105,204,047

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $35,631)	$	865,910
Interest		1,198
Total investment income		867,108
Expenses:
Management fees		805,234
Transfer agent and administrative fees		268,412
Distribution and Service Fees:
Advisor Class		52,444
A-Class		16,114
C-Class		139,252
Portfolio accounting fees		106,843
Trustees’ fees**		7,403
Miscellaneous		182,746
Total expenses		1,578,448
Net investment loss		(711,340	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		6,447,247
Net realized gain		6,447,247
Net unrealized appreciation (depreciation) during the period on:
Investment securities		25,865,545
Net unrealized appreciation		25,865,545
Net realized and unrealized gain		32,312,792
Net increase in net assets resulting from operations	$	31,601,452

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

82    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

  PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(711,340	)	$	(2,166,985	)
Net realized gain during the period on investments		6,447,247			13,492,994
Net unrealized appreciation during the period on investments		25,865,545			13,352,516
Net increase in net assets resulting from operations		31,601,452			24,678,525
Distributions to shareholders from:
Net realized gain
Investor Class		—			(318,313	)
Advisor Class		—			(23,497	)
A-Class		—			(13,966	)
C-Class		—			(35,730	)
Return of Capital
Investor Class		—			(261,414	)
Advisor Class		—			(19,297	)
A-Class		—			(11,470	)
C-Class		—			(29,343	)
Total distributions to shareholders		—			(713,030	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		415,883,298			915,789,879
Advisor Class		188,231,708			322,513,759
A-Class		16,188,936			20,994,273
C-Class		78,571,991			154,061,224
Distributions reinvested
Investor Class		—			567,650
Advisor Class		—			42,644
A-Class		—			21,122
C-Class		—			62,132
Cost of shares redeemed
Investor Class		(387,364,386	)		(979,875,546	)
Advisor Class		(196,631,994	)		(316,640,330	)
A-Class		(10,423,197	)		(22,945,686	)
C-Class		(73,964,511	)		(156,178,689	)
Net increase (decrease) from capital share transactions		30,491,845			(61,587,568	)
Net increase (decrease) in net assets		62,093,297			(37,622,073	)
Net assets:
Beginning of period		164,128,641			201,750,714
End of period	$	226,221,938		$	164,128,641
Accumulated net investment loss at end of period	$	(711,340	)	$	—

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    83

  PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Capital share activity:
Shares sold
Investor Class		6,228,691			16,254,367
Advisor Class		2,981,747			5,449,720
A-Class		244,367			375,253
C-Class		1,296,845			2,894,055
Shares reinvested
Investor Class		—			8,519
Advisor Class		—			661
A-Class		—			323
C-Class		—			1,015
Shares redeemed
Investor Class		(5,921,819	)		(17,891,314	)
Advisor Class		(3,085,053	)		(5,405,181	)
A-Class		(161,161	)		(422,541	)
C-Class		(1,222,062	)		(2,956,535	)
Total capital share activity		361,555			(1,691,658	)

84    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  PRECIOUS METALS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$61.73			$46.36			$69.89			$56.21			$54.50			$35.64
Income (loss) from investment operations:
Net investment lossb		(.16	)		(.44	)		(.23	)		(.37	)		(.03	)		(.07	)
Net gain (loss) on securities (realized and unrealized)		13.52			15.96			(23.30	)		14.05			1.74			18.93
Total from investment operations		13.36			15.52			(23.53	)		13.68			1.71			18.86
Less distributions:
Distributions from realized gains		—			(.08	)		—			—			—			—
Return of capital		—			(.07	)		—			—			—			—
Total distributions		—			(.15	)		—			—			—			—
Net asset value, end of period		$75.09			$61.73			$46.36			$69.89			$56.21			$54.50
Total Returnc		21.64%			33.44%			(33.67%	)		24.34%			3.14%			52.92%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$161,154			$113,546			$160,759			$149,805			$149,876			$213,017
Ratios to average net assets:
Net investment loss		(0.48%	)		(0.76%	)		(0.48%	)		(0.58%	)		(0.05%	)		(0.16%	)
Total expenses		1.28%			1.28%			1.28%			1.27%			1.26%			1.24%
Portfolio turnover rate		178%			383%			245%			203%			259%			277%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$59.79			$45.12			$68.36			$55.24			$53.83			$35.37
Income (loss) from investment operations:
Net investment lossb		(.29	)		(.79	)		(.50	)		(.69	)		(.27	)		(.28	)
Net gain (loss) on securities (realized and unrealized)		13.05			15.61			(22.74	)		13.81			1.68			18.74
Total from investment operations		12.76			14.82			(23.24	)		13.12			1.41			18.46
Less distributions:
Distributions from realized gains		—			(.08	)		—			—			—			—
Return of capital		—			(.07	)		—			—			—			—
Total distributions		—			(.15	)		—			—			—			—
Net asset value, end of period		$72.55			$59.79			$45.12			$68.36			$55.24			$53.83
Total Returnc		21.34%			32.81%			(34.00%	)		23.75%			2.62%			52.19%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$15,167			$18,677			$12,056			$11,817			$8,387			$14,087
Ratios to average net assets:
Net investment loss		(0.90%	)		(1.35%	)		(1.02%	)		(1.09%	)		(0.51%	)		(0.70%	)
Total expenses		1.78%			1.77%			1.77%			1.77%			1.76%			1.75%
Portfolio turnover rate		178%			383%			245%			203%			259%			277%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    85

  PRECIOUS METALS FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$60.63			$45.64			$68.96			$55.59			$54.03			$35.41
Income (loss) from investment operations:
Net investment lossb		(.23	)		(.59	)		(.36	)		(.55	)		(.15	)		(.19	)
Net gain (loss) on securities (realized and unrealized)		13.25			15.73			(22.96	)		13.92			1.71			18.81
Total from investment operations		13.02			15.14			(23.32	)		13.37			1.56			18.62
Less distributions:
Distributions from realized gains		—			(.08	)		—			—			—			—
Return of capital		—			(.07	)		—			—			—			—
Total distributions		—			(.15	)		—			—			—			—
Net asset value, end of period		$73.65			$60.63			$45.64			$68.96			$55.59			$54.03
Total Returnc		21.47%			33.14%			(33.82%	)		24.05%			2.89%			52.58%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,359			$8,422			$8,484			$10,911			$4,778			$5,701
Ratios to average net assets:
Net investment loss		(0.71%	)		(1.04%	)		(0.71%	)		(0.84%	)		(0.28%	)		(0.43%	)
Total expenses		1.52%			1.52%			1.53%			1.52%			1.51%			1.52%
Portfolio turnover rate		178%			383%			245%			203%			259%			277%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$56.58			$42.92			$65.38			$53.12			$52.02			$34.37
Income (loss) from investment operations:
Net investment lossb		(.44	)		(.97	)		(.68	)		(.97	)		(.51	)		(.46	)
Net gain (loss) on securities (realized and unrealized)		12.33			14.78			(21.78	)		13.23			1.61			18.11
Total from investment operations		11.89			13.81			(22.46	)		12.26			1.10			17.65
Less distributions:
Distributions from realized gains		—			(.08	)		—			—			—			—
Return of capital		—			(.07	)		—			—			—			—
Total distributions		—			(.15	)		—			—			—			—
Net asset value, end of period		$68.47			$56.58			$42.92			$65.38			$53.12			$52.02
Total Returnc		21.04%			32.14%			(34.35%	)		23.08%			2.11%			51.35%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$33,542			$23,483			$20,452			$26,319			$23,486			$24,266
Ratios to average net assets:
Net investment loss		(1.45%	)		(1.81%	)		(1.43%	)		(1.60%	)		(1.00%	)		(1.20%	)
Total expenses		2.27%			2.28%			2.27%			2.27%			2.26%			2.25%
Portfolio turnover rate		178%			383%			245%			203%			259%			277%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

86    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

FUND PROFILE (Unaudited)

September 30, 2010

RETAILING FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, mail order operations and other companies involved in selling products to consumers.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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.	7.0	%
Amazon.com, Inc.	4.6	%
Home Depot, Inc.	3.5	%
CVS Caremark Corp.	3.2	%
Target Corp.	3.0	%
Walgreen Co.	3.0	%
Lowe’s Companies, Inc.	2.8	%
Costco Wholesale Corp.	2.7	%
Priceline.com, Inc.	2.7	%
Best Buy Company, Inc.	2.0	%
Top Ten Total	34.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    87

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  RETAILING FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.4%
CONSUMER DISCRETIONARY - 81.3%
Amazon.com, Inc.*		2,981	$	468,196
Home Depot, Inc.		11,490		364,003
Target Corp.		5,826		311,341
Lowe’s Companies, Inc.		12,671		282,437
Priceline.com, Inc.*		782		272,402
Best Buy Company, Inc.		5,295		216,195
TJX Companies, Inc.		4,727		210,965
Kohl’s Corp.*		3,829		201,711
Staples, Inc.		9,223		192,945
Bed Bath & Beyond, Inc.*		4,127		179,154
AutoZone, Inc.*		780		178,551
Expedia, Inc.		5,926		167,172
The Gap, Inc.		8,827		164,535
NetFlix, Inc.*		1,014		164,430
Macy’s, Inc.		6,990		161,399
Dollar General Corp.*		5,363		156,868
Limited Brands, Inc.		5,727		153,369
CarMax, Inc.*		5,262		146,599
Liberty Media Corp.— Interactive*		10,369		142,159
Nordstrom, Inc.		3,778		140,542
Sears Holdings Corp.*		1,948		140,529
O’Reilly Automotive, Inc.*		2,616		139,171
Genuine Parts Co.		3,079		137,293
Dollar Tree, Inc.*		2,731		133,164
JC Penney Company, Inc.		4,763		129,458
Family Dollar Stores, Inc.		2,900		128,064
Tiffany & Co.		2,711		127,390
Ross Stores, Inc.		2,295		125,353
Advance Auto Parts, Inc.		2,049		120,235
Urban Outfitters, Inc.*		3,413		107,305
Guess?, Inc.		2,611		106,085
PetSmart, Inc.		3,028		105,980
AutoNation, Inc.*		4,513		104,927
Williams-Sonoma, Inc.		3,246		102,898
Abercrombie & Fitch Co. — Class A		2,501		98,339
Tractor Supply Co.		2,362		93,677
American Eagle Outfitters, Inc.		6,246		93,440
Dick’s Sporting Goods, Inc.*		3,213		90,093
LKQ Corp.*		4,215		87,672
GameStop Corp. — Class A*		4,446		87,631
Signet Jewelers Ltd.*		2,631		83,508
RadioShack Corp.		3,777		80,563
Big Lots, Inc.*		2,412		80,199
Foot Locker, Inc.		5,228		75,963
HSN, Inc.*		2,334		69,787
Ulta Salon Cosmetics & Fragrance, Inc.*		2,381		69,525

			MARKET
	SHARES		VALUE
Chico’s FAS, Inc.		6,326	$	66,550
Dress Barn, Inc.*		2,765		65,669
Aeropostale, Inc.*		2,817		65,495
J Crew Group, Inc.*		1,913		64,315
Cabela’s, Inc.*		3,179		60,337
Men’s Wearhouse, Inc.		2,529		60,165
Rent-A-Center, Inc. — Class A		2,667		59,687
DSW, Inc. — Class A*		2,079		59,667
Dillard’s, Inc. — Class A		2,495		58,982
Childrens Place Retail Stores, Inc.*		1,201		58,573
Aaron’s, Inc.		3,165		58,394
Penske Automotive Group, Inc.*		4,332		57,182
Saks, Inc.*		6,590		56,674
Jo-Ann Stores, Inc.*		1,264		56,311
Jos A. Bank Clothiers, Inc.*		1,318		56,160
AnnTaylor Stores Corp.*		2,683		54,304
Gymboree Corp.*		1,284		53,337
Office Depot, Inc.*		11,522		53,001
Buckle, Inc.		1,830		48,568
hhgregg, Inc.*		1,929		47,762
Barnes & Noble, Inc.		2,899		46,993
OfficeMax, Inc.*		3,578		46,836
Collective Brands, Inc.*		2,897		46,758
Total Consumer Discretionary				8,294,942
CONSUMER STAPLES - 18.1%
Wal-Mart Stores, Inc.		13,352		714,599
CVS Caremark Corp.		10,323		324,865
Walgreen Co.		9,122		305,587
Costco Wholesale Corp.		4,312		278,081
Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR		2,147		148,186
BJ’s Wholesale Club, Inc.*		1,814		75,281
Total Consumer Staples				1,846,599
Total Common Stocks (Cost $8,344,618)				10,141,541
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$54,157		54,157
Total Repurchase Agreement (Cost $54,157)				54,157
Total Investments - 99.9% (Cost $8,398,775)			$	10,195,698
Cash & Other Assets, Less Liabilities – 0.1%				10,597
Total Net Assets – 100.0%			$	10,206,295

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt

88    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

2

  RETAILING FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	10,141,541
Repurchase agreement, at value		54,157
Total Investments		10,195,698
Receivables:
Fund shares sold		6,248,632
Dividends		1,664
Total assets		16,445,994
Liabilities:
Payable for:
Securities purchased		6,096,133
Fund shares redeemed		131,500
Management fees		2,704
Custodian fees		115
Transfer agent/maintenance fees		795
Distribution and service fees		1,350
Portfolio accounting fees		318
Other		6,784
Total liabilities		6,239,699
Net assets	$	10,206,295
Net assets consist of:
Paid in capital		14,828,264
Undistributed net investment income		17,721
Accumulated net realized loss on sale of investments		(6,436,613	)
Net unrealized appreciation in value of investments		1,796,923
Net assets		10,206,295
Investor Class:
Net assets	$	7,900,856
Capital shares outstanding		621,622
Net asset value per share		$12.71
Advisor Class:
Net assets	$	864,113
Capital shares outstanding		71,523
Net asset value per share		$12.08
A-Class:
Net assets	$	107,996
Capital shares outstanding		8,799
Net asset value per share		$12.27
Maximum offering price per share*		$12.88
C-Class:
Net assets	$	1,333,330
Capital shares outstanding		115,186
Net asset value per share		$11.58
Investments, at cost	$	8,344,618
Repurchase agreement, at cost		54,157
Total cost	$	8,398,775

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends	$	55,965
Interest		63
Total investment income		56,028
Expenses:
Management fees		45,491
Transfer agent and administrative fees		13,380
Distribution and Service Fees:
Advisor Class		3,352
A-Class		851
C-Class		10,017
Portfolio accounting fees		5,352
Trustees’ fees**		601
Registration fees		4,730
Miscellaneous		4,610
Total expenses		88,384
Net investment loss		(32,356	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(95,296	)
Net realized loss		(95,296	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(1,192,255	)
Net unrealized depreciation		(1,192,255	)
Net loss		(1,287,551	)
Net decrease in net assets resulting from operations	$	(1,319,907	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    89

3

  RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(32,356	)	$	50,077
Net realized gain (loss) during the period on investments		(95,296	)		13,906,162
Net unrealized depreciation during the period on investments		(1,192,255	)		(2,188,787	)
Net increase (decrease) in net assets resulting from operations		(1,319,907	)		11,767,452
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		55,257,435			231,519,396
Advisor Class		14,162,897			23,430,046
A-Class		2,454,750			824,746
C-Class		41,172,944			59,631,158
Cost of shares redeemed
Investor Class		(58,623,955	)		(314,999,705	)
Advisor Class		(15,515,772	)		(22,343,021	)
A-Class		(2,672,668	)		(543,161	)
C-Class		(41,224,057	)		(59,624,643
Net decrease from capital share transactions		(4,988,426	)		(82,105,184	)
Net decrease in net assets		(6,308,333	)		(70,337,732	)
Net assets:
Beginning of period		16,514,628			86,852,360
End of period	$	10,206,295		$	16,514,628
Undistributed net investment income at end of period	$	17,721		$	50,077
Capital share activity:
Shares sold
Investor Class		4,469,883			22,245,116
Advisor Class		1,230,782			2,256,831
A-Class		214,777			83,532
C-Class		3,702,023			5,943,831
Shares redeemed
Investor Class		(4,794,259	)		(31,199,256	)
Advisor Class		(1,352,866	)		(2,173,081	)
A-Class		(238,038	)		(57,371	)
C-Class		(3,733,544	)		(5,924,368	)
Total capital share activity		(501,242	)		(8,824,766	)

90  |  THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  RETAILING FUND

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.

	Period Ended			Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,		March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010		2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.75			$8.58		$11.54			$14.47			$13.48			$12.30
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.03		(.01	)		(.04	)		(.06	)		(.08	)
Net gain (loss) on securities (realized and unrealized)		(.01	)		4.14		(2.95	)		(2.89	)		1.05			1.26
Total from investment operations		(.04	)		4.17		(2.96	)		(2.93	)		.99			1.18
Net asset value, end of period		$12.71			$12.75		$8.58			$11.54			$14.47			$13.48
Total Returnc		(0.31%	)		48.60%		(25.65%	)		(20.25%	)		7.34%			9.59%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,901			$12,060		$84,894			$3,152			$4,033			$7,608
Ratios to average net assets:
Net investment income (loss)		(0.41%	)		0.28%		(0.14%	)		(0.27%	)		(0.45%	)		(0.60%	)
Total expenses		1.39%			1.38%		1.32%			1.37%			1.36%			1.33%
Portfolio turnover rate		599%			1,049%		461%			1,205%			952%			1,163%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.14			$8.20			$11.10			$13.97			$13.07			$11.99
Income (loss) from investment operations:
Net investment lossb		(.05	)		(.06	)		(.02	)		(.12	)		(.10	)		(.15	)
Net gain (loss) on securities (realized and unrealized)		(.01	)		4.00			(2.88	)		(2.75	)		1.00			1.23
Total from investment operations		(.06	)		3.94			(2.90	)		(2.87	)		.90			1.08
Net asset value, end of period		$12.08			$12.14			$8.20			$11.10			$13.97			$13.07
Total Returnc		(0.49%	)		48.05%			(26.13%	)		(20.54%	)		6.89%			9.01%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$864			$2,350			$901			$800			$2,791			$3,385
Ratios to average net assets:
Net investment loss		(0.82%	)		(0.57%	)		(0.26%	)		(0.89%	)		(0.73%	)		(1.18%	)
Total expenses		1.88%			1.87%			1.88%			1.87%			1.86%			1.82%
Portfolio turnover rate		599%			1,049%			461%			1,205%			952%			1,163%

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    91

  RETAILING FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.31			$8.30			$11.18			$14.04			$13.10			$12.01
Income (loss) from investment operations:
Net investment lossb		(.02	)		(.01	)		(.02	)		(.10	)		(.07	)		(.11	)
Net gain (loss) on securities (realized and unrealized)		(.02	)		4.02			(2.86	)		(2.76	)		1.01			1.20
Total from investment operations		(.04	)		4.01			(2.88	)		(2.86	)		.94			1.09
Net asset value, end of period		$12.27			$12.31			$ 8.30			$11.18			$14.04			$13.10
Total Returnc		(0.32%	)		48.31%			(25.76%	)		(20.37%	)		7.18%			9.08%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$108			$395			$49			$101			$385			$46
Ratios to average net assets:
Net investment loss		(0.40%	)		(0.12%	)		(0.17%	)		(0.73%	)		(0.54%	)		(0.87%	)
Total expenses		1.63%			1.62%			1.63%			1.63%			1.57%			1.59%
Portfolio turnover rate		599%			1,049%			461%			1,205%			952%			1,163%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$11.65			$7.92			$10.76			$13.62			$12.80			$11.80
Income (loss) from investment operations:
Net investment lossb		(.07	)		(.10	)		(.07	)		(.17	)		(.15	)		(.20	)
Net gain (loss) on securities (realized and unrealized)		.00			3.83			(2.77	)		(2.69	)		.97			1.20
Total from investment operations		(.07	)		3.73			(2.84	)		(2.86	)		.82			1.00
Net asset value, end of period		$11.58			$11.65			$7.92			$10.76			$13.62			$12.80
Total Returnc		(0.60%	)		47.10%			(26.39%	)		(21.00%	)		6.41%			8.47%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,333			$1,709			$1,008			$1,291			$2,650			$1,586
Ratios to average net assets:
Net investment loss		(1.16%	)		(1.08%	)		(0.76%	)		(1.36%	)		(1.17%	)		(1.65%	)
Total expenses		2.38%			2.38%			2.38%			2.37%			2.34%			2.34%
Portfolio turnover rate		599%			1,049%			461%			1,205%			952%			1,163%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

92  |  THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

FUND PROFILE (Unaudited)

September 30, 2010

TECHNOLOGY FUND

OBJECTIVE: Seeks to provide 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, PC hardware and peripherals companies.

Inception: April 14, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Apple, Inc.	4.0	%
Microsoft Corp.	3.3	%
Google, Inc. — Class A	3.3	%
International Business Machines Corp.	3.2	%
Oracle Corp.	3.1	%
Cisco Systems, Inc.	2.7	%
Intel Corp.	2.3	%
QUALCOMM, Inc.	2.3	%
Hewlett-Packard Co.	2.2	%
Baidu, Inc. ADR	1.9	%
Top Ten Total	28.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    93

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  TECHNOLOGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.6%
INFORMATION TECHNOLOGY - 99.6%
Apple, Inc.*		3,524	$	999,935
Microsoft Corp.		35,406		867,092
Google, Inc. — Class A*		1,550		814,974
International Business Machines Corp.		6,068		813,962
Oracle Corp.		28,743		771,750
Cisco Systems, Inc.*		30,598		670,096
Intel Corp.		31,234		600,629
QUALCOMM, Inc.		13,055		589,042
Hewlett-Packard Co.		13,492		567,608
Baidu, Inc. ADR*		4,340		445,371
Visa, Inc. — Class A		5,928		440,214
EMC Corp.*		19,963		405,449
Infosys Technologies Ltd. ADR		5,872		395,244
VMware, Inc. — Class A*		4,571		388,261
eBay, Inc.*		14,962		365,073
Texas Instruments, Inc.		13,426		364,382
Mastercard, Inc. — Class A		1,510		338,240
Corning, Inc.		17,920		327,577
Cognizant Technology Solutions Corp. — Class A*		4,605		296,884
Motorola, Inc.*		34,756		296,469
Dell, Inc.*		22,657		293,635
Research In Motion Ltd.*		5,791		281,964
Automatic Data Processing, Inc.		6,690		281,181
Nokia Oyj ADR		27,732		278,152
NetApp, Inc.*		5,530		275,339
Juniper Networks, Inc.*		8,840		268,294
Citrix Systems, Inc.*		3,892		265,590
Yahoo!, Inc.*		18,255		258,673
Broadcom Corp. — Class A		7,290		257,993
Salesforce.com, Inc.*		2,209		246,966
Intuit, Inc.*		5,596		245,161
Xerox Corp.		23,448		242,687
Netease.com ADR*		5,920		233,485
Applied Materials, Inc.		19,448		227,153
Tyco Electronics Ltd.		7,740		226,162
Western Union Co.		12,477		220,469
Activision Blizzard, Inc.		20,148		218,001
Symantec Corp.*		14,182		215,141
Alcatel-Lucent ADR		63,300		213,954
Agilent Technologies, Inc.*		6,378		212,834
F5 Networks, Inc.*		2,045		212,291
SAP AG ADR		4,218		207,990
CA, Inc.		9,845		207,926
Taiwan Semiconductor Manufacturing Company Ltd. ADR		20,300		205,842
McAfee, Inc.*		4,261		201,375
Adobe Systems, Inc.*		7,671		200,597
Altera Corp.		6,634		200,081

			MARKET
	SHARES		VALUE
Marvell Technology Group Ltd.*		11,340	$	198,563
AU Optronics Corp. ADR		18,621		194,776
Fidelity National Information Services, Inc.		7,140		193,708
Red Hat, Inc.*		4,713		193,233
Amphenol Corp. — Class A		3,919		191,953
Paychex, Inc.		6,929		190,478
Analog Devices, Inc.		6,060		190,163
Akamai Technologies, Inc.*		3,753		188,326
Perfect World Company Ltd. ADR*		7,300		187,318
Fiserv, Inc.*		3,431		184,656
Check Point Software Technologies Ltd.*		4,983		184,022
ASML Holding N.V. — Class G		6,084		180,877
Telefonaktiebolaget LM Ericsson ADR		16,323		179,063
LG Display Company Ltd. ADR		10,240		178,586
Autodesk, Inc.*		5,516		176,347
BMC Software, Inc.*		4,264		172,607
Xilinx, Inc.		6,226		165,674
Teradata Corp.*		4,292		165,500
Linear Technology Corp.		5,338		164,037
KLA-Tencor Corp.		4,591		161,741
Rovi Corp.*		3,170		159,800
Computer Sciences Corp.		3,357		154,422
VeriSign, Inc.*		4,826		153,177
SanDisk Corp.*		4,171		152,867
Microchip Technology, Inc.		4,852		152,595
NVIDIA Corp.*		13,057		152,506
Amdocs Ltd.*		5,271		151,067
Maxim Integrated Products, Inc.		7,843		145,174
Electronic Arts, Inc.*		8,707		143,056
Dolby Laboratories, Inc. — Class A*		2,509		142,536
SAIC, Inc.*		8,878		141,870
Western Digital Corp.*		4,960		140,814
Harris Corp.		3,178		140,754
Micron Technology, Inc.*		19,443		140,184
Lam Research Corp.*		3,347		140,072
Avago Technologies Ltd.*		6,155		138,549
Equinix, Inc.*		1,348		137,968
Cree, Inc.*		2,434		132,142
Flextronics International Ltd.*		21,544		130,126
Seagate Technology plc*		10,866		128,001
Synopsys, Inc.*		4,990		123,602
Nuance Communications, Inc.*		7,896		123,493
Avnet, Inc.*		4,512		121,869
Advanced Micro Devices, Inc.*		16,895		120,123
FLIR Systems, Inc.*		4,490		115,393
Global Payments, Inc.		2,689		115,331
Molex, Inc.		5,430		113,650
Arrow Electronics, Inc.*		4,200		112,266
Alliance Data Systems Corp.*		1,690		110,289
ON Semiconductor Corp.*		14,988		108,063

94    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  TECHNOLOGY FUND

			MARKET
	SHARES		VALUE
Lender Processing Services, Inc.		3,205	$	106,502
National Semiconductor Corp.		7,806		99,683
LSI Corp.*		21,585		98,428
Total Information Technology				25,145,188
Total Common Stocks
(Cost $17,539,199)				25,145,188
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$144,937	$	144,937
Total Repurchase Agreement
(Cost $144,937)				144,937
Total Investments - 100.2%
(Cost $17,684,136)			$	25,290,125
Liabilities, Less Cash & Other Assets – (0.2)%				(45,378	)
Total Net Assets – 100.0%			$	25,244,747

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt
	plc — Public Limited Company

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    95

  TECHNOLOGY FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	25,145,188
Repurchase agreement, at value		144,937
Total investments		25,290,125
Receivables:
Fund shares sold		6,068,614
Dividends		9,838
Total assets		31,368,577
Liabilities:
Payable for:
Securities purchased		4,574,911
Fund shares redeemed		1,497,379
Management fees		17,251
Custodian fees		690
Transfer agent/maintenance fees		5,074
Distribution and service fees		5,533
Portfolio accounting fees		2,029
Other		20,963
Total liabilities		6,123,830
Net assets	$	25,244,747
Net assets consist of:
Paid in capital		56,404,620
Accumulated net investment loss		(141,034	)
Accumulated net realized loss on sale of investments		(38,624,828	)
Net unrealized appreciation in value of investments		7,605,989
Net assets		25,244,747
Investor Class:
Net assets	$	18,574,180
Capital shares outstanding		1,547,592
Net asset value per share		$12.00
Advisor Class:
Net assets	$	2,026,860
Capital shares outstanding		178,795
Net asset value per share		$11.34
A-Class:
Net assets	$	2,069,355
Capital shares outstanding		180,811
Net asset value per share		$11.44
Maximum offering price per share*		$12.01
C-Class:
Net assets	$	2,574,352
Capital shares outstanding		234,347
Net asset value per share		$10.99
Investments, at cost	$	17,539,199
Repurchase agreement, at cost		144,937
Total cost	$	17,684,136

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $1,637)	$	203,677
Interest		231
Total investment income		203,908
Expenses:
Management fees		179,389
Transfer agent and administrative fees		52,761
Distribution and Service Fees:
Advisor Class		34,810
A-Class		2,660
C-Class		16,215
Portfolio accounting fees		21,104
Trustees’ fees**		2,087
Miscellaneous		35,916
Total expenses		344,942
Net investment loss		(141,034	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		6,408,880
Net realized gain		6,408,880
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(8,263,529	)
Net unrealized depreciation		(8,263,529	)
Net loss		(1,854,649	)
Net decrease in net assets resulting from operations	$	(1,995,683	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

96    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(141,034	)	$	(339,603	)
Net realized gain during the period on investments		6,408,880			1,770,571
Net unrealized appreciation (depreciation) during the period on investments		(8,263,529	)		13,057,669
Net increase (decrease) in net assets resulting from operations		(1,995,683	)		14,488,637
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
Investor Class		42,464,802			140,714,130
Advisor Class		13,003,391			42,864,952
A-Class		2,155,239			12,309,707
C-Class		53,076,236			62,125,549
Cost of shares redeemed
Investor Class		(60,172,801	)		(124,009,356	)
Advisor Class		(28,254,819	)		(30,029,626	)
A-Class		(3,924,529	)		(11,211,951	)
C-Class		(54,122,892	)		(60,755,874	)
Net increase (decrease) from capital share transactions		(35,775,373	)		32,007,531
Net increase (decrease) in net assets		(37,771,056	)		46,496,168
Net assets:
Beginning of period		63,015,803			16,519,635
End of period	$	25,244,747		$	63,015,803
Accumulated net investment loss at end of period	$	(141,034	)	$	—
Capital share activity:
Shares sold
Investor Class		3,653,537			13,517,205
Advisor Class		1,200,508			4,325,684
A-Class		187,633			1,248,922
C-Class		4,999,719			6,099,863
Shares redeemed
Investor Class		(5,212,896	)		(11,917,824	)
Advisor Class		(2,598,832	)		(3,009,928	)
A-Class		(349,408	)		(1,132,707	)
C-Class		(5,101,940	)		(5,950,283	)
Total capital share activity		(3,221,679	)		3,180,932

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    97

  TECHNOLOGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.03			$7.70			$11.77			$12.53			$12.35			$10.35
Income (loss) from investment operations:
Net investment lossb		(.02	)		(.05	)		(.03	)		(.10	)		(.11	)		(.09	)
Net gain (loss) on securities (realized and unrealized)		(.01	)		4.38			(4.04	)		(.66	)		.29			2.12
Total from investment operations		(.03	)		4.33			(4.07	)		(.76	)		.18			2.03
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.03	)
Total distributions		—			—			—			—			—			(.03	)
Net asset value, end of period		$12.00			$12.03			$7.70			$11.77			$12.53			$12.35
Total Returnc		(0.25%	)		56.23%			(34.58%	)		(6.07%	)		1.46%			19.65%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$18,574			$37,391			$11,601			$9,916			$14,274			$21,182
Ratios to average net assets:
Net investment loss		(0.42%	)		(0.52%	)		(0.29%	)		(0.72%	)		(0.91%	)		(0.79%	)
Total expenses		1.38%			1.38%			1.37%			1.37%			1.36%			1.33
Portfolio turnover rate		151%			335%			564%			694%			684%			666%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$11.39			$7.32			$11.27			$12.05			$11.94			$10.06
Income (loss) from investment operations:
Net investment lossb		(.05	)		(.11	)		(.05	)		(.15	)		(.16	)		(.14	)
Net gain (loss) on securities (realized and unrealized)		.00			4.18			(3.90	)		(.63	)		.27			2.05
Total from investment operations		(.05	)		4.07			(3.95	)		(.78	)		.11			1.91
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.03	)
Total distributions		—			—			—			—			—			(.03	)
Net asset value, end of period		$11.34			$11.39			$7.32			$11.27			$12.05			$11.94
Total Returnc		(0.44%	)		55.60%			(35.05%	)		(6.47%	)		0.92%			19.02%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,027			$17,969			$1,914			$2,077			$4,807			$12,737
Ratios to average net assets:
Net investment loss		(0.89%	)		(1.04%	)		(0.53%	)		(1.16%	)		(1.41%	)		(1.32%	)
Total expenses		1.88%			1.87%			1.87%			1.88%			1.86%			1.84%
Portfolio turnover rate		151%			335%			564%			694%			684%			666%

98    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  TECHNOLOGY FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$11.49			$7.37			$11.32			$12.09			$11.95			$10.07
Income (loss) from investment operations:
Net investment lossb		(.04	)		(.08	)		(.04	)		(.11	)		(.14	)		(.13	)
Net gain (loss) on securities (realized and unrealized)		(.01	)		4.20			(3.91	)		(.66	)		.28			2.04
Total from investment operations		(.05	)		4.12			(3.95	)		(.77	)		.14			1.91
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.03	)
Total distributions		—			—			—			—			—			(.03	)
Net asset value, end of period		$11.44			$11.49			$7.37			$11.32			$12.09			$11.95
Total Returnc		(0.44%	)		55.90%			(34.89%	)		(6.37%	)		1.17%			(19.00%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,069			$3,936			$1,669			$546			$278			$633
Ratios to average net assets:
Net investment loss		(0.66%	)		(0.78%	)		(0.41%	)		(0.86%	)		(1.18%	)		(1.15%	)
Total expenses		1.63%			1.63%			1.63%			1.60%			1.61%			1.63%
Portfolio turnover rate		151%			335%			564%			694%			684%			666%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$11.05			$7.14			$11.04			$11.87			$11.81			$10.01
Income (loss) from investment operations:
Net investment lossb		(.08	)		(.14	)		(.12	)		(.21	)		(.22	)		(.21	)
Net gain (loss) on securities (realized and unrealized)		.02			4.05			(3.78	)		(.62	)		.28			2.04
Total from investment operations		(.06	)		3.91			(3.90	)		(.83	)		.06			1.83
Less distributions:
Distributions from net investment income		—			—			—			—			—			(.03	)
Total distributions		—			—			—			—			—			(.03	)
Net asset value, end of period		$10.99			$11.05			$7.14			$11.04			$11.87			$11.81
Total Returnc		(0.63%	)		54.76%			(35.33%	)		(6.99%	)		0.51%			18.31%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,574			$3,719			$1,335			$2,448			$1,538			$2,800
Ratios to average net assets:
Net investment loss		(1.44%	)		(1.49%	)		(1.24%	)		(1.67%	)		(1.91%	)		(1.88%	)
Total expenses		2.38%			2.38%			2.38%			2.35%			2.35%			2.35%
Portfolio turnover rate		151%			335%			564%			694%			684%			666%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    99

FUND PROFILE (Unaudited)

September 30, 2010

TELECOMMUNICATIONS FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in the development, manufacture, or sale of communications services or communications equipment.

Inception: April 1, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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)
AT&T, Inc.	7.8	%
Vodafone Group plc ADR	6.9	%
Cisco Systems, Inc.	6.2	%
Verizon Communications, Inc.	5.8	%
QUALCOMM, Inc.	5.4	%
American Tower Corp. — Class A	2.7	%
Motorola, Inc.	2.7	%
Research In Motion Ltd.	2.6	%
Juniper Networks, Inc.	2.5	%
Nokia Oyj ADR	2.4	%
Top Ten Total	45.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

100    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  TELECOMMUNICATIONS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.2%
TELECOMMUNICATION SERVICES - 54.2%
AT&T, Inc.		65,340	$	1,868,723
Vodafone Group plc ADR		67,745		1,680,754
Verizon Communications, Inc.		42,469		1,384,065
American Tower Corp. — Class A*		12,850		658,691
Crown Castle International Corp.*		11,738		518,233
CenturyLink, Inc.		12,566		495,854
Qwest Communications International, Inc.		77,002		482,803
America Movil SAB de CV ADR		8,947		477,144
Millicom International Cellular S.A.		4,844		464,782
NII Holdings, Inc.*		9,033		371,256
China Mobile Ltd. ADR		6,971		356,427
BCE, Inc.		10,711		348,108
Windstream Corp.		27,027		332,162
SBA Communications Corp. — Class A*		7,895		318,169
Telefonica S.A. ADR		4,191		310,763
Frontier Communications Corp.		37,188		303,826
MetroPCS Communications, Inc.*		26,655		278,811
China Unicom Hong Kong Ltd. ADR		18,931		275,635
SK Telecom Company Ltd. ADR		15,116		264,077
Mobile Telesystems OJSC ADR		12,363		262,466
tw telecom inc — Class A*		12,500		232,125
Vivo Participacoes S.A. ADR		8,083		219,615
Rogers Communications, Inc. — Class B		5,742		214,923
Tele Norte Leste Participacoes S.A. ADR		14,504		204,216
Clearwire Corp. — Class A*		23,961		193,844
Syniverse Holdings, Inc.*		8,033		182,108
AboveNet, Inc.*		3,117		162,365
Telmex Internacional SAB de CV ADR		7,056		129,901
Leap Wireless International, Inc.*		9,610		118,684
Total Telecommunication Services				13,110,530
INFORMATION TECHNOLOGY - 45.0%
Cisco Systems, Inc.*		67,719		1,483,045
QUALCOMM, Inc.		28,903		1,304,103
Motorola, Inc.*		76,916		656,093
Research In Motion Ltd.*		12,814		623,914
Juniper Networks, Inc.*		19,569		593,919
Nokia Oyj ADR		57,847		580,205
F5 Networks, Inc.*		4,530		470,259
Harris Corp.		7,044		311,979
Riverbed Technology, Inc.*		6,695		305,158

			MARKET
	SHARES		VALUE
Alcatel-Lucent ADR		81,020	$	273,848
Telefonaktiebolaget LM Ericsson ADR		22,785		249,951
Tellabs, Inc.		32,096		239,115
JDS Uniphase Corp.*		18,807		233,019
Acme Packet, Inc.*		6,070		230,296
Brocade Communications Systems, Inc.*		38,914		227,258
Aruba Networks, Inc.*		10,598		226,161
ADTRAN, Inc.		6,393		225,673
Polycom, Inc.*		7,256		197,944
CommScope, Inc.*		8,096		192,199
Infinera Corp.*		16,379		191,143
Viasat, Inc.*		4,605		189,312
ADC Telecommunications, Inc.*		14,877		188,492
Plantronics, Inc.		5,255		177,514
Finisar Corp.*		9,296		174,672
Ciena Corp.*		10,925		170,102
InterDigital, Inc.*		5,569		164,898
Netgear, Inc.*		5,607		151,445
Arris Group, Inc.*		14,597		142,613
Blue Coat Systems, Inc.*		5,811		139,813
Oclaro, Inc.*		8,228		131,730
Emulex Corp.*		12,237		127,754
Tekelec*		9,496		123,068
Comtech Telecommunications Corp.		4,142		113,284
DG FastChannel, Inc.*		3,666		79,736
Total Information Technology				10,889,715
Total Common Stocks (Cost $21,318,505)				24,000,245
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.7%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$168,886		168,886
Total Repurchase Agreement
(Cost $168,886)				168,886
Total Investments - 99.9%
(Cost $21,487,391)			$	24,169,131
Cash & Other Assets, Less Liabilities – 0.1%				20,745
Total Net Assets – 100.0%			$	24,189,876

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt
	plc — Public Limited Company

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    101

  TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	24,000,245
Repurchase agreement, at value		168,886
Total investments		24,169,131
Cash		20
Receivables:
Fund shares sold		5,645,971
Dividends		12,697
Total assets		29,827,819
Liabilities:
Payable for:
Securities purchased		4,071,048
Fund shares redeemed		1,543,481
Management fees		10,461
Custodian fees		407
Transfer agent/maintenance fees		3,077
Distribution and service fees		1,809
Portfolio accounting fees		1,231
Other		6,429
Total liabilities		5,637,943
Net assets	$	24,189,876
Net assets consist of:
Paid in capital		31,875,194
Undistributed net investment income		132,484
Accumulated net realized loss on sale of investments		(10,499,542	)
Net unrealized appreciation in value of investments		2,681,740
Net assets		24,189,876
Investor Class:
Net assets	$	19,667,891
Capital shares outstanding		1,369,431
Net asset value per share		$14.36
Advisor Class:
Net assets	$	2,041,027
Capital shares outstanding		150,998
Net asset value per share		$13.52
A-Class:
Net assets	$	645,667
Capital shares outstanding		47,300
Net asset value per share		$13.65
Maximum offering price per share*		$14.33
C-Class:
Net assets	$	1,835,291
Capital shares outstanding		140,650
Net asset value per share		$13.05
Investments, at cost	$	21,318,505
Repurchase agreement, at cost		168,886
Total cost	$	21,487,391

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $3,360)	$	111,631
Interest		31
Total investment income		111,662
Expenses:
Management fees		39,358
Transfer agent and administrative fees		11,576
Distribution and Service Fees:
Advisor Class		1,934
A-Class		1,193
C-Class		8,111
Portfolio accounting fees		4,630
Trustees’ fees**		289
Miscellaneous		7,942
Total expenses		75,033
Net investment income		36,629
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(576,475	)
Net realized loss		(576,475	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		639,773
Net unrealized appreciation		639,773
Net realized and unrealized gain		63,298
Net increase in net assets resulting from operations	$	99,927

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

102    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	36,629		$	244,261
Net realized gain (loss) during the period on investments		(576,475	)		3,628,955
Net unrealized appreciation during the period on investments		639,773			233,436
Net increase in net assets resulting from operations		99,927			4,106,652
Distributions to shareholders from:
Net investment income
Investor Class		—			(201,940	)
Advisor Class		—			(33,798	)
A-Class		—			(16,499	)
C-Class		—			(25,934	)
Total distributions to shareholders		—			(278,171	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		38,623,182			69,585,026
Advisor Class		11,972,397			17,955,896
A-Class		2,455,560			2,200,098
C-Class		48,327,673			56,923,676
Distributions reinvested
Investor Class		—			198,455
Advisor Class		—			32,841
A-Class		—			14,616
C-Class		—			24,656
Cost of shares redeemed
Investor Class		(23,933,142	)		(70,446,599	)
Advisor Class		(10,311,016	)		(29,801,508	)
A-Class		(2,846,018	)		(2,722,245	)
C-Class		(47,388,527	)		(57,632,310	)
Net increase (decrease) from capital share transactions		16,900,109			(13,667,398	)
Net increase (decrease) in net assets		17,000,036			(9,838,917	)
Net assets:
Beginning of period		7,189,840			17,028,757
End of period	$	24,189,876		$	7,189,840
Undistributed net investment income at end of period	$	132,484		$	95,855
Capital share activity:
Shares sold
Investor Class		2,829,894			5,418,401
Advisor Class		947,432			1,513,965
A-Class		192,025			184,119
C-Class		3,974,934			4,881,373
Shares reinvested
Investor Class		—			15,042
Advisor Class		—			2,638
A-Class		—			1,163
C-Class		—			2,044
Shares redeemed
Investor Class		(1,801,230	)		(5,524,377	)
Advisor Class		(818,028	)		(2,519,297	)
A-Class		(228,322	)		(235,714	)
C-Class		(3,925,574	)		(4,927,198	)
Total capital share activity		1,171,131			(1,187,841	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    103

  TELECOMMUNICATIONS FUND

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.

	Period Ended		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,		March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010a		2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$13.73		$10.29			$17.04			$19.02			$17.74			$14.33
Income (loss) from investment operations:
Net investment incomeb		.05		.26			.27			.12			.16			.21
Net gain (loss) on securities (realized and unrealized)		.58		3.52			(6.68	)		(2.08	)		1.23			3.60
Total from investment operations		.63		3.78			(6.41	)		(1.96	)		1.39			3.81
Less distributions:
Distributions from net investment income		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Total distributions		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Net asset value, end of period		$14.36		$13.73			$10.29			$17.04			$19.02			$17.74
Total Returnc		4.59%		36.88%			(37.55%	)		(10.32%	)		7.87%			26.96%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,668		$4,677			$4,440			$11,134			$16,699			$56,695
Ratios to average net assets:
Net investment income		0.77%		2.03%			1.92%			0.58%			0.89%			1.30%
Total expenses		1.38%		1.39%			1.39%			1.37%			1.37%			1.38%
Portfolio turnover rate		581%		867%			672%			528%			430%			820%

	Period Ended		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,		March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010a		2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.94		$9.75			$16.26			$18.24			$17.10			$13.88
Income (loss) from investment operations:
Net investment income (loss)b		.01		.23			.17			(.02	)		.04			.12
Net gain (loss) on securities (realized and unrealized)		.57		3.30			(6.34	)		(1.94	)		1.21			3.50
Total from investment operations		.58		3.53			(6.17	)		(1.96	)		1.25			3.62
Less distributions:
Distributions from net investment income		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Total distributions		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Net asset value, end of period		$13.52		$12.94			$9.75			$16.26			$18.24			$17.10
Total Returnc		4.48%		36.35%			(37.88%	)		(10.76%	)		7.35%			26.46%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,041		$279			$9,991			$835			$6,584			$8,487
Ratios to average net assets:
Net investment income (loss)		0.09%		1.94%			1.53%			(0.09%	)		0.22%			0.81%
Total expenses		1.87%		1.89%			1.81%			1.88%			1.83%			1.82%
Portfolio turnover rate		581%		867%			672%			528%			430%			820%

104    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  TELECOMMUNICATIONS FUND

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.

	Period Ended		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,		March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010a		2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$13.07		$9.83			$16.33			$18.28			$17.15			$13.90
Income (loss) from investment operations:
Net investment income (loss)b		.10		.17			.27			.03			.05			(.03	)
Net gain (loss) on securities (realized and unrealized)		.48		3.41			(6.43	)		(1.96	)		1.19			3.68
Total from investment operations		.58		3.58			(6.16	)		(1.93	)		1.24			3.65
Less distributions:
Distributions from net investment income		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Total distributions		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Net asset value, end of period		$13.65		$13.07			$9.83			$16.33			$18.28			$17.15
Total Returnc		4.44%		36.57%			(37.66%	)		(10.57%	)		7.27%			26.64%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$646		$1,093			$1,317			$451			$2,126			$4,193
Ratios to average net assets:
Net investment income (loss)		1.59%		1.45%			2.15%			0.13%			0.28%			(0.18%	)
Total expenses		1.64%		1.63%			1.63%			1.61%			1.49%			1.88%
Portfolio turnover rate		581%		867%			672%			528%			430%			820%

	Period Ended		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,		March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010a		2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.50		$9.48			$15.91			$17.93			$16.90			$13.81
Income (loss) from investment operations:
Net investment income (loss)b		.04		.10			.13			(.10	)		(.06	)		.01
Net gain (loss) on securities (realized and unrealized)		.51		3.26			(6.22	)		(1.90	)		1.20			3.48
Total from investment operations		.55		3.36			(6.09	)		(2.00	)		1.14			3.49
Less distributions:
Distributions from net investment income		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Total distributions		—		(.34	)		(.34	)		(.02	)		(.11	)		(.40	)
Net asset value, end of period		$13.05		$12.50			$9.48			$15.91			$17.93			$16.90
Total Returnc		4.32%		35.59%			(38.21%	)		(11.17%	)		6.78%			25.65%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,835		$1,141			$1,281			$2,846			$4,763			$2,827
Ratios to average net assets:
Net investment income (loss)		0.72%		0.86%			0.99%			(0.50%	)		(0.35%	)		0.09%
Total expenses		2.38%		2.39%			2.42%			2.37%			2.33%			2.31%
Portfolio turnover rate		581%		867%			672%			528%			430%			820%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    105

FUND PROFILE (Unaudited)

September 30, 2010

TRANSPORTATION FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment.

Inception: April 2, 1998

Industry Diversification (Market Exposure as % of Net Assets)

“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	9.8	%
Union Pacific Corp.	7.8	%
FedEx Corp.	6.3	%
Norfolk Southern Corp.	5.7	%
CSX Corp.	5.4	%
CH Robinson Worldwide, Inc.	4.4	%
Expeditors International of Washington, Inc.	4.1	%
Southwest Airlines Co.	3.8	%
Canadian National Railway Co.	3.3	%
Delta Air Lines, Inc.	3.2	%
Top Ten Total	53.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

106    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  TRANSPORTATION FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.3%
INDUSTRIALS - 99.3%
United Parcel Service, Inc. — Class B		31,918	$	2,128,611
Union Pacific Corp.		20,428		1,671,010
FedEx Corp.		15,989		1,367,060
Norfolk Southern Corp.		20,539		1,222,276
CSX Corp.		21,004		1,161,941
CH Robinson Worldwide, Inc.		13,344		933,012
Expeditors International of Washington, Inc.		18,781		868,246
Southwest Airlines Co.		61,237		800,369
Canadian National Railway Co.		10,929		699,675
Delta Air Lines, Inc.*		59,250		689,670
Hertz Global Holdings, Inc.*		50,451		534,276
J.B. Hunt Transport Services, Inc.		15,229		528,446
United Continental Holdings, Inc.*		21,175		500,365
Continental Airlines, Inc. — Class B*		18,999		471,935
Kansas City Southern*		12,489		467,213
Canadian Pacific Railway Ltd.		6,720		409,450
Ryder System, Inc.		8,684		371,415
JetBlue Airways Corp.*		54,406		363,976
Landstar System, Inc.		8,795		339,663
Alaska Air Group, Inc.*		6,512		332,307
Dollar Thrifty Automotive Group, Inc.*		6,400		320,896
Con-way, Inc.		10,354		320,870
Copa Holdings S.A. — Class A		5,703		307,449
AMR Corp.*		49,009		307,286
Knight Transportation, Inc.		15,768		304,795
AirTran Holdings, Inc.*		39,958		293,691
Werner Enterprises, Inc.		14,020		287,270
US Airways Group, Inc.*		30,694		283,920
Atlas Air Worldwide Holdings, Inc.*		5,561		279,718
Avis Budget Group, Inc.*		23,772		276,944
Old Dominion Freight Line, Inc.*		9,356		237,830
Kirby Corp.*		5,775		231,346
Allegiant Travel Co. — Class A		5,318		225,058
Arkansas Best Corp.		8,729		211,504
Heartland Express, Inc.		14,008		208,299
Genco Shipping & Trading Ltd.*		11,195		178,448
Genesee & Wyoming, Inc. — Class A*		4,103		178,029
UTI Worldwide, Inc.		10,201		164,032
Skywest, Inc.		10,789		150,614
Excel Maritime Carriers Ltd. — Class A*		26,358		148,132
Alexander & Baldwin, Inc.		4,075		141,973

			MARKET
	SHARES		VALUE
Diana Shipping, Inc.*		10,271	$	130,442
HUB Group, Inc. — Class A*		4,272		124,999
Aegean Marine Petroleum Network, Inc.		5,811		96,695
Total Industrials				21,271,156
Total Common Stocks (Cost $16,908,550)				21,271,156
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10	$	98,869		98,869
Total Repurchase Agreement (Cost $98,869)				98,869
Total Investments - 99.8% (Cost $17,007,419)			$	21,370,025
Cash & Other Assets, Less Liabilities – 0.2%				35,457
Total Net Assets – 100.0%			$	21,405,482

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    107

  TRANSPORTATION FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	21,271,156
Repurchase agreement, at value		98,869
Total investments		21,370,025
Cash		1,861
Receivables:
Fund shares sold		3,897,061
Dividends		22,641
Total assets		25,291,588
Liabilities:
Payable for:
Securities purchased		2,788,927
Fund shares redeemed		1,065,870
Management fees		11,909
Custodian fees		462
Transfer agent/maintenance fees		3,503
Distribution and service fees		2,116
Portfolio accounting fees		1,401
Other		11,918
Total liabilities		3,886,106
Net assets	$	21,405,482
Net assets consist of:
Paid in capital		48,106,667
Accumulated net investment loss		(13,640	)
Accumulated net realized loss on sale of investments		(31,050,151	)
Net unrealized appreciation in value of investments		4,362,606
Net assets		21,405,482
Investor Class:
Net assets	$	16,582,380
Capital shares outstanding		682,189
Net asset value per share		$24.31
Advisor Class:
Net assets	$	1,100,613
Capital shares outstanding		48,933
Net asset value per share		$22.49
A-Class:
Net assets	$	1,088,101
Capital shares outstanding		47,624
Net asset value per share		$22.85
Maximum offering price per share*		$23.99
C-Class:
Net assets	$	2,634,388
Capital shares outstanding		118,267
Net asset value per share		$22.27
Investments, at cost	$	16,908,550
Repurchase agreement, at cost		98,869
Total cost	$	17,007,419

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $1,280)	$	215,073
Interest		209
Total investment income		215,282
Expenses:
Management fees		129,166
Transfer agent and administrative fees		37,990
Distribution and Service Fees:
Advisor Class		5,151
A-Class		3,319
C-Class		10,700
Portfolio accounting fees		15,196
Trustees’ fees**		1,292
Miscellaneous		26,108
Total expenses		228,922
Net investment loss		(13,640	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(8,556,274	)
Net realized loss		(8,556,274	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(737,353	)
Net unrealized depreciation		(737,353	)
Net loss		(9,293,627	)
Net decrease in net assets resulting from operations	$	(9,307,267	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

108    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (decrease) in net assets from operations:
Net investment loss	$	(13,640	)	$	(126,770	)
Net realized gain (loss) during the period on investments		(8,556,274	)		2,728,041
Net unrealized appreciation (depreciation) during the period on investments		(737,353	)		3,744,101
Net increase (decrease) in net assets resulting from operations		(9,307,267	)		6,345,372
Distributions to shareholders from:
Net investment income
Investor Class		—			(34,294	)
Advisor Class		—			(16,447	)
A-Class		—			(8,824	)
C-Class		—			(5,014	)
Total distributions to shareholders		—			(64,579	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		164,291,441			157,093,305
Advisor Class		17,382,666			18,324,095
A-Class		5,895,257			1,699,281
C-Class		36,854,963			66,386,477
Distributions reinvested Investor Class		—			33,605
Advisor Class		—			16,362
A-Class		—			8,248
C-Class		—			4,827
Cost of shares redeemed
Investor Class		(161,613,549	)		(160,537,241	)
Advisor Class		(18,751,328	)		(16,959,390	)
A-Class		(6,383,982	)		(906,222	)
C-Class		(37,266,125	)		(66,016,877	)
Net increase (decrease) from capital share transactions		409,343			(853,530	)
Net increase (decrease) in net assets		(8,897,924	)		5,427,263
Net assets:
Beginning of period		30,303,406			24,876,143
End of period	$	21,405,482		$	30,303,406
Accumulated net investment loss at end of period	$	(13,640	)	$	—
Capital share activity:
Shares sold
Investor Class		6,845,523			7,533,509
Advisor Class		800,505			950,836
A-Class		263,547			86,665
C-Class		1,679,723			3,656,133
Shares reinvested
Investor Class		—			1,583
Advisor Class		—			830
A-Class		—			413
C-Class		—			247
Shares redeemed
Investor Class		(7,100,542	)		(8,058,029	)
Advisor Class		(878,295	)		(909,945	)
A-Class		(298,259	)		(46,165	)
C-Class		(1,715,755	)		(3,665,209	)
Total capital share activity		(403,553	)		(449,132	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    109

  TRANSPORTATION FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$23.79			$14.38			$25.21			$29.16			$28.30			$22.42
Income (loss) from investment operations:
Net investment income (loss)b		.01			(.15	)		.07			.06			(.14	)		(.09	)
Net gain (loss) on securities (realized and unrealized)		.51			9.70			(10.90	)		(4.01	)		1.00			5.97
Total from investment operations		.52			9.55			(10.83	)		(3.95	)		.86			5.88
Less distributions:
Distributions from net investment income		—			(.14	)		(—	)d		—			—			—
Total distributions		—			(.14	)		(—	)d		—			—			—
Net asset value, end of period		$24.31			$23.79			$14.38			$25.21			$29.16			$28.30
Total Returnc		2.19%			66.51%			(42.96%	)		(13.55%	)		3.04%			26.23%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,582			$22,292			$20,990			$17,420			$6,635			$45,580
Ratios to average net assets:
Net investment income (loss)		0.09%			(0.68%	)		0.33%			0.22%			(0.48%	)		(0.36%	)
Total expenses		1.38%			1.37%			1.38%			1.36%			1.36%			1.37%
Portfolio turnover rate		691%			1,073%			875%			952%			686%			669%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$22.05			$13.40			$23.59			$27.42			$26.75			$21.31
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.18	)		.10			(.01	)		(.26	)		(.19	)
Net gain (loss) on securities (realized and unrealized)		.51			8.97			(10.29	)		(3.82	)		.93			5.63
Total from investment operations		.44			8.79			(10.19	)		(3.83	)		.67			5.44
Less distributions:
Distributions from net investment income		—			(.14	)		(—	)d		—			—			—
Total distributions		—			(.14	)		(—	)d		—			—			—
Net asset value, end of period		$22.49			$22.05			$13.40			$23.59			$27.42			$26.75
Total Returnc		2.00%			65.70%			(43.20%	)		(13.97%	)		2.50%			25.53%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,101			$2,795			$1,139			$5,152			$3,556			$8,478
Ratios to average net assets:
Net investment income (loss)		(0.63%	)		(0.95%	)		0.51%			(0.05%	)		(0.97%	)		(0.81%	)
Total expenses		1.88%			1.88%			1.90%			1.87%			1.86%			1.86%
Portfolio turnover rate		691%			1,073%			875%			952%			686%			669%

110    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  TRANSPORTATION FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$22.37			$13.55			$23.81			$27.60			$26.87			$21.34
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.04	)		.08			—	d		(.19	)		(.17	)
Net gain (loss) on securities (realized and unrealized)		.53			9.00			(10.34	)		(3.79	)		.92			5.70
Total from investment operations		.48			8.96			(10.26	)		(3.79	)		.73			5.53
Less distributions:
Distributions from net investment income		—			(.14	)		(—	)d		—			—			—
Total distributions		—			(.14	)		(—	)d		—			—			—
Net asset value, end of period		$22.85			$22.37			$13.55			$23.81			$27.60			$26.87
Total Returnc		2.15%			66.22%			(43.09%	)		(13.73%	)		2.72%			25.91%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,088			$1,842			$561			$228			$483			$3,044
Ratios to average net assets:
Net investment income (loss)		(0.43%	)		(0.22%	)		0.43%			—%			(0.70%	)		(0.71%	)
Total expenses		1.64%			1.62%			1.67%			1.62%			1.61%			1.66%
Portfolio turnover rate		691%			1,073%			875%			952%			686%			669%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$21.87			$13.40			$23.70			$27.68			$27.14			$21.71
Income (loss) from investment operations:
Net investment lossb		(.12	)		(.24	)		(.16	)		(.20	)		(.40	)		(.35	)
Net gain (loss) on securities (realized and unrealized)		.52			8.85			(10.14	)		(3.78	)		.94			5.78
Total from investment operations		.40			8.61			(10.30	)		(3.98	)		.54			5.43
Less distributions:
Distributions from net investment income		—			(.14	)		(—	)d		—			—			—
Total distributions		—			(.14	)		(—	)d		—			—			—
Net asset value, end of period		$22.27			$21.87			$13.40			$23.70			$27.68			$27.14
Total Returnc		1.83%			64.35%			(43.46%	)		(14.38%	)		1.99%			25.01%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,634			$3,375			$2,186			$845			$4,894			$5,385
Ratios to average net assets:
Net investment loss		(1.09%	)		(1.31%	)		(0.79%	)		(0.73%	)		(1.47%	)		(1.43%	)
Total expenses		2.38%			2.38%			2.40%			2.38%			2.37%			2.38%
Portfolio turnover rate		691%			1,073%			875%			952%			686%			669%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Less than $0.01 per share.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    111

FUND PROFILE (Unaudited)

September 30, 2010

UTILITIES FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that operate public utilities.

Inception: April 3, 2000

Industry Diversification (Market Exposure as % of Net Assets)

“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)
Southern Co.	3.4	%
Exelon Corp.	3.1	%
Dominion Resources, Inc.	3.1	%
Duke Energy Corp.	2.8	%
NextEra Energy, Inc.	2.7	%
American Electric Power Co., Inc.	2.4	%
PG&E Corp.	2.4	%
Public Service Enterprise Group, Inc.	2.3	%
Consolidated Edison, Inc.	2.2	%
Entergy Corp.	2.1	%
Top Ten Total	26.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

112    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  UTILITIES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 99.8%
UTILITIES - 97.5%
Southern Co.		30,782	$	1,146,321
Exelon Corp.		25,270		1,075,997
Dominion Resources, Inc.		23,596		1,030,200
Duke Energy Corp.		55,237		978,247
NextEra Energy, Inc.		17,519		952,858
American Electric Power Co., Inc.		23,409		848,108
PG&E Corp.		18,274		830,005
Public Service Enterprise Group, Inc.		24,139		798,518
Consolidated Edison, Inc.		15,667		755,463
Entergy Corp.		9,734		744,943
Sempra Energy		13,840		744,592
Progress Energy, Inc.		16,639		739,104
FirstEnergy Corp.		17,481		673,718
Xcel Energy, Inc.		28,797		661,467
Edison International		19,181		659,635
PPL Corp.		23,879		650,225
AES Corp.*		54,412		617,576
Ameren Corp.		19,004		539,714
Wisconsin Energy Corp.		9,325		538,985
DTE Energy Co.		11,677		536,325
CenterPoint Energy, Inc.		34,070		535,580
SCANA Corp.		11,752		473,841
Constellation Energy Group, Inc.		14,632		471,736
Northeast Utilities		15,898		470,104
Cia Energetica de Minas Gerais ADR		28,169		461,690
NiSource, Inc.		26,329		458,125
Calpine Corp.*		35,614		443,394
Pinnacle West Capital Corp.		10,593		437,173
NRG Energy, Inc.*		20,775		432,536
CMS Energy Corp.		23,971		431,957
Pepco Holdings, Inc.		22,816		424,378
Oneok, Inc.		9,376		422,294
Allegheny Energy, Inc.		17,156		420,665
NSTAR		10,690		420,652
American Water Works Company, Inc.		17,955		417,813
Integrys Energy Group, Inc.		7,966		414,710
Alliant Energy Corp.		11,285		410,210
National Fuel Gas Co.		7,892		408,884
OGE Energy Corp.		9,982		397,982
Enersis S.A. ADR		16,860		396,379
MDU Resources Group, Inc.		19,702		393,055
TECO Energy, Inc.		22,529		390,202
ITC Holdings Corp.		5,984		372,504
UGI Corp.		12,690		363,061
Aqua America, Inc.		17,403		355,021
N.V. Energy, Inc.		26,799		352,407

			MARKET
	SHARES		VALUE
DPL, Inc.		13,482	$	352,285
Energen Corp.		7,600		347,472
AGL Resources, Inc.		8,926		342,401
Westar Energy, Inc.		13,698		331,903
Atmos Energy Corp.		11,306		330,701
Great Plains Energy, Inc.		17,253		326,082
Piedmont Natural Gas Co., Inc.		10,258		297,482
Vectren Corp.		11,453		296,289
Nicor, Inc.		6,402		293,340
WGL Holdings, Inc.		7,535		284,672
Hawaiian Electric Industries, Inc.		12,469		281,051
Cleco Corp.		9,325		276,207
IDACORP, Inc.		7,325		263,114
New Jersey Resources Corp.		6,639		260,382
Southwest Gas Corp.		7,613		255,721
South Jersey Industries, Inc.		5,075		251,060
Portland General Electric Co.		12,283		249,099
Ormat Technologies, Inc.		7,781		226,972
Northwest Natural Gas Co.		4,760		225,862
Allete, Inc.		6,189		225,465
Unisource Energy Corp.		6,700		223,981
Black Hills Corp.		7,143		222,862
El Paso Electric Co.*		9,046		215,114
Mirant Corp.*		21,446		213,602
Avista Corp.		10,209		213,164
Questar Corp.		11,807		206,977
NorthWestern Corp.		7,110		202,635
PNM Resources, Inc.		16,791		191,249
Total Utilities				33,905,498
ENERGY - 2.3% EQT Corp.		11,816		426,085
QEP Resources, Inc.		11,806		355,833
Total Energy				781,918
Total Common Stocks (Cost $28,309,386)				34,687,416
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/10	$	197,119		197,119
Total Repurchase Agreement (Cost $197,119)				197,119
Total Investments - 100.4% (Cost $28,506,505)			$	34,884,535
Liabilities, Less Cash & Other Assets – (0.4)%				(152,678	)
Total Net Assets – 100.0%			$	34,731,857

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    113

2

  UTILITIES FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	34,687,416
Repurchase agreement, at value		197,119
Total investments		34,884,535
Receivables:
Securities sold		1,242,864
Fund shares sold		1,357,080
Dividends		277,856
Total assets		37,762,335
LIABILITIES:
Payable for:
Fund shares redeemed		2,846,681
Management fees		92,453
Custodian fees		3,692
Transfer agent/maintenance fees		27,192
Distribution and service fees		9,339
Portfolio accounting fees		10,876
Other		40,245
Total liabilities		3,030,478
NET ASSETS	$	34,731,857
NET ASSETS CONSIST OF:
Paid in capital		38,684,640
Undistributed net investment income		1,392,806
Accumulated net realized loss on sale of investments		(11,723,619	)
Net unrealized appreciation in value of investments		6,378,030
Net assets		34,731,857
Investor Class:
Net assets	$	22,752,634
Capital shares outstanding		860,874
Net asset value per share		$26.43
Advisor Class:
Net assets	$	4,654,369
Capital shares outstanding		187,108
Net asset value per share		$24.88
A-Class:
Net assets	$	1,762,431
Capital shares outstanding		69,658
Net asset value per share		$25.30
Maximum offering price per share*		$26.56
C-Class:
Net assets	$	5,562,423
Capital shares outstanding		236,241
Net asset value per share		$23.55
Investments, at cost	$	28,309,386
Repurchase agreement, at cost		197,119
Total cost	$	28,506,505

STATEMENT OF
OPERATIONS (Unaudited)

For the Six Months Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,463)	$	1,618,472
Interest		214
Total investment income		1,618,686
Expenses:
Management fees		286,557
Transfer agent and administrative fees		84,281
Distribution and Service Fees:
Advisor Class		8,947
A-Class		3,026
C-Class		28,756
Portfolio accounting fees		33,712
Trustees’ fees**		963
Miscellaneous		54,757
Total expenses		500,999
Net investment income		1,117,687
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(1,435,318	)
Net realized loss		(1,435,318	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		2,159,786
Net unrealized appreciation		2,159,786
Net realized and unrealized gain		724,468
Net increase in net assets resulting from operations	$	1,842,155

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

114    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

3

  UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,			Year Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	1,117,687		$	697,734
Net realized gain (loss) during the period on investments		(1,435,318	)		1,168,856
Net unrealized appreciation during the period on investments		2,159,786			2,060,198
Net increase in net assets resulting from operations		1,842,155			3,926,788
Distributions to shareholders from:
Net investment income
Investor Class		—			(443,269	)
Advisor Class		—			(150,527	)
A-Class		—			(70,862	)
C-Class		—			(203,012	)
Total distributions to shareholders		—			(867,670	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		216,199,333			189,197,372
Advisor Class		32,590,922			18,745,544
A-Class		8,115,874			6,451,789
C-Class		57,952,463			108,354,662
Distributions reinvested
Investor Class		—			423,986
Advisor Class		—			145,991
A-Class		—			50,251
C-Class		—			182,345
Cost of shares redeemed
Investor Class		(204,116,798	)		(191,518,650	)
Advisor Class		(29,393,260	)		(23,786,471	)
A-Class		(8,158,046	)		(6,611,351	)
C-Class		(60,423,332	)		(106,474,172	)
Net increase (decrease) from capital share transactions		12,767,156			(4,838,704	)
Net increase (decrease) in net assets		14,609,311			(1,779,586	)
Net assets:
Beginning of period		20,122,546			21,902,132
End of period	$	34,731,857		$	20,122,546
Undistributed net investment income at end of period	$	1,392,806		$	275,119
Capital share activity:
Shares sold
Investor Class		8,385,503			7,861,775
Advisor Class		1,358,426			805,986
A-Class		338,346			282,563
C-Class		2,593,233			5,007,623
Shares reinvested
Investor Class		—			17,143
Advisor Class		—			6,244
A-Class		—			2,118
C-Class		—			8,206
Shares redeemed
Investor Class		(7,924,353	)		(7,982,458	)
Advisor Class		(1,221,908	)		(1,065,226	)
A-Class		(341,107	)		(287,483	)
C-Class		(2,685,912	)		(4,907,526	)
Total capital share activity		502,228			(251,035	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    115

  UTILITIES FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Investor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$24.80			$20.56			$29.29			$31.89			$24.90			$23.62
Income (loss) from investment operations:
Net investment incomeb		.46			.61			.72			.51			.52			.51
Net gain (loss) on securities (realized and unrealized)		1.17			4.85			(9.32	)		(2.31	)		6.83			1.21
Total from investment operations		1.63			5.46			(8.60	)		(1.80	)		7.35			1.72
Less distributions:
Distributions from net investment income		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Total distributions		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Net asset value, end of period		$26.43			$24.80			$20.56			$29.29			$31.89			$24.90
Total Returnc		6.57%			26.58%			(29.40%	)		(5.88%	)		29.64%			7.25%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$22,753			$9,912			$10,348			$11,242			$84,150			$11,717
Ratios to average net assets:
Net investment income		3.58%			2.49%			2.90%			1.57%			1.86%			1.99%
Total expenses		1.36%			1.39%			1.39%			1.39%			1.37%			1.33%
Portfolio turnover rate		362%			758%			684%			375%			557%			728%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
Advisor Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$23.40			$19.56			$28.00			$30.65			$24.08			$22.96
Income (loss) from investment operations:
Net investment incomeb		.31			.47			.63			.32			.37			.36
Net gain (loss) on securities (realized and unrealized)		1.17			4.59			(8.94	)		(2.17	)		6.56			1.20
Total from investment operations		1.48			5.06			(8.31	)		(1.85	)		6.93			1.56
Less distributions:
Distributions from net investment income		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Total distributions		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Net asset value, end of period		$24.88			$23.40			$19.56			$28.00			$30.65			$24.08
Total Returnc		6.32%			25.89%			(29.72%	)		(6.28%	)		28.90%			6.76%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,654			$1,184			$5,939			$2,960			$11,929			$1,427
Ratios to average net assets:
Net investment income		2.59%			2.07%			2.72%			1.02%			1.38%			1.46%
Total expenses		1.87%			1.88%			1.90%			1.88%			1.86%			1.83%
Portfolio turnover rate		362%			758%			684%			375%			557%			728%

116    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  UTILITIES FUND

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.

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$23.77			$19.80			$28.27			$30.87			$24.18			$23.00
Income (loss) from investment operations:
Net investment incomeb		.24			.65			.54			.42			.43			.44
Net gain (loss) on securities (realized and unrealized)		1.29			4.54			(8.88	)		(2.22	)		6.62			1.18
Total from investment operations		1.53			5.19			(8.34	)		(1.80	)		7.50			1.62
Less distributions:
Distributions from net investment income		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Total distributions		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Net asset value, end of period		$25.30			$23.77			$19.80			$28.27			$30.87			$24.18
Total Returnc		6.44%			26.24%			(29.54%	)		(6.07%	)		29.28%			7.01%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,762			$1,721			$1,489			$3,032			$4,756			$626
Ratios to average net assets:
Net investment income		2.03%			2.81%			2.15%			1.38%			1.52%			1.75%
Total expenses		1.63%			1.64%			1.64%			1.63%			1.61%			1.60%
Portfolio turnover rate		362%			758%			684%			375%			557%			728%

	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$22.21			$18.71			$26.93			$29.66			$23.42			$22.47
Income (loss) from investment operations:
Net investment incomeb		.19			.39			.32			.18			.22			.24
Net gain (loss) on securities (realized and unrealized)		1.15			4.33			(8.41	)		(2.11	)		6.38			1.15
Total from investment operations		1.34			4.72			(8.09	)		(1.93	)		6.60			1.39
Less distributions:
Distributions from net investment income		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Total distributions		—			(1.22	)		(.13	)		(.80	)		(.36	)		(.44	)
Net asset value, end of period		$23.55			$22.21			$18.71			$26.93			$29.66			$23.42
Total Returnc		5.99%			25.24%			(30.08%	)		(6.77%	)		28.30%			6.15%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,562			$7,306			$4,127			$8,934			$11,013			$5,346
Ratios to average net assets:
Net investment income		1.70%			1.77%			1.31%			0.60%			0.82%			1.00%
Total expenses		2.38%			2.39%			2.39%			2.38%			2.36%			2.34%
Portfolio turnover rate		362%			758%			684%			375%			557%			728%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    117

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1.    Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company. The Trust offers eight separate classes of shares, Investor Class shares, Investor2 Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Institutional Class shares, and Y-Class shares. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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. A-Class shares are sold at net asset value, plus the applicable front-end sales charge, except for the U.S. Government Money Market Fund. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At September 30, 2010, the Trust consisted of fifty-eight separate Funds. This report covers the Sector Funds (the “Funds”), while the other funds are contained in separate reports.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

The Sector Funds invest in a specific industry sector. To the extent that investments are concentrated in a single sector, the Funds are subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting such sector.

The Funds seek capital appreciation and invest substantially all of their assets in equity securities of companies involved in their sector. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.

Significant Accounting Policies

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. All time references are based on Eastern Time.

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 the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Investments for which market quotations are not readily available are fair valued as determined in good faith by Rydex Investments under direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures con-tracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

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. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

E. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and

118    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 service and distribution fees related to Advisor Class shares and C-Class shares, are charged directly to specific Classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

F. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2.    Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays Rydex Investments 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.

Rydex Investments provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each Fund.

Rydex Investments also provides accounting services to the Trust for fees 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 Fund.

Rydex Investments engages external service providers to perform other necessary services to the Trust, such as accounting and auditing related services, legal services, printing and mailing, etc. on a pass through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets. Organizational and setup costs for new Funds are paid by the Trust.

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 for which the Distributor 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 ongoing services to the shareholder. The annual 0.75% distribution fee reimburses the Distributor for paying the shareholder’s financial advisor an ongoing sales commission. The Distributor advances the first year’s service and distribution fees to the Financial Advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

For the period ended September 30, 2010, the Distributor retained sales charges of $321,536 relating to sales of A-Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

3.    Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on Federal income tax returns for all open tax years (fiscal years 2007-2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which

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2

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for 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, will result in reclassifications. This may include net operating losses not utilized during the current period, capital loss carryforward expired, and the utilization of earnings and profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifi-cations have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

At September 30, 2010, 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	$	11,490,755	$	—	$	(1,398,001	)	$	(1,398,001	)
Basic Materials Fund		102,373,664		14,967,543		(797,429	)		14,170,114
Biotechnology Fund		35,124,716		22,467,490		(351,170	)		22,116,320
Consumer Products Fund		68,239,216		7,781,013		(546,169	)		7,234,844
Electronics Fund		10,661,342		—		(777,775	)		(777,775	)
Energy Fund		39,402,950		14,471,024		(54,119	)		14,416,905
Energy Services Fund		38,629,549		21,635,793		(87,877	)		21,547,916
Financial Services Fund		11,723,893		—		(311,762	)		(311,762	)
Health Care Fund		24,014,579		3,658,341		(146,778	)		3,511,563
Internet Fund		161,490,133		9,855,039		(1,117,845	)		8,737,194
Leisure Fund		13,443,633		1,394,371		(36,119	)		1,358,252
Precious Metals Fund		129,949,361		96,926,652		(478,024	)		96,448,628
Retailing Fund		9,737,814		469,322		(11,437	)		457,885
Technology Fund		22,148,668		3,180,780		(39,323	)		3,141,457
Telecommunications Fund		23,265,336		982,326		(78,531	)		903,795
Transportation Fund		19,092,184		2,322,808		(44,966	)		2,277,842
Utilities Fund		30,785,228		4,109,612		(10,305	)		4,099,307

4.    Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund. Repurchase agreements are valued at amortized cost, which approximates market value.

The repurchase agreements executed by the joint account and outstanding at September 30, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.18% due 10/01/10	$	116,949,665	$	116,949,665	$	116,950,250
				$	116,949,665	$	116,950,250

At September 30, 2010, the collateral for the repurchase agreements in the joint account was as follows:

		Range
Security Type	Maturity Dates	of Rates		Par Value		Market Value
U.S. Treasury Bills	09/22/11		0.00%	$	119,588,900	$	119,288,732
						$	119,288,732

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their 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

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

5.    Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securities.

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2010:

	Level 1		Level 2		Level 3
	Investments		Investments		Investments
Fund	In Securities		In Securities		In Securities		Total
Assets
Banking Fund	$	10,040,994	$	51,760		$ —	$	10,092,754
Basic Materials Fund		115,711,240		832,539		—		116,543,779
Biotechnology Fund		56,985,388		255,648		—		57,241,036
Consumer Products Fund		75,228,893		245,168		—		75,474,061
Electronics Fund		9,850,630		32,937		—		9,883,567
Energy Fund		53,542,385		277,470		—		53,819,855
Energy Services Fund		60,177,464		—		—		60,177,464
Financial Services Fund		11,407,706		4,425		—		11,412,131
Health Care Fund		27,270,320		255,822		—		27,526,142
Internet Fund		168,784,670		1,442,657		—		170,227,327
Leisure Fund		14,801,867		18		—		14,801,885
Precious Metals Fund		225,496,470		901,519		—		226,397,989
Retailing Fund		10,141,541		54,157		—		10,195,698
Technology Fund		25,145,188		144,937		—		25,290,125
Telecommunications Fund		24,000,245		168,886		—		24,169,131
Transportation Fund		21,271,156		98,869		—		21,370,025
Utilities Fund		34,687,416		197,119		—		34,884,535

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective December 31, 2009. This update applies to the Funds’ disclosures about transfers in and out of Level 1 and Level 2 of the fair value hierarchy and the reasons for the transfers as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy.

As of the period ended September 30, 2010, there were no securities transferred from Level 1 to Level 2 and no securities transferred from Level 2 to Level 1.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)

6.    Securities Transactions

During the period ended September 30, 2010, purchases and sales of investment securities, excluding short-term and temporary cash investments, were:

			Basic				Consumer						Energy
	Banking		Materials		Biotechnology		Products		Electronics		Energy		Services
	Fund		Fund		Fund		Fund		Fund		Fund		Fund
Purchases	$	76,515,912		$174,129,817	$	106,098,368	$	225,976,360	$	160,084,035	$	62,826,339		$82,947,052
Sales	$	103,122,541		$129,579,447	$	206,414,293	$	368,188,686	$	166,039,988	$	65,307,329		$93,628,476
	Financial		Health						Precious
	Services		Care		Internet		Leisure		Metals		Retailing		Technology
	Fund		Fund		Fund		Fund		Fund		Fund		Fund
Purchases		$42,864,879		$126,627,528	$	187,351,723		$89,944,398	$	401,937,564	$	72,146,033	$	64,705,347
Sales		$62,048,555		$308,852,374	$	51,699,837		$89,714,877	$	371,354,135	$	77,132,865	$	100,416,904
	Telecommunications		Transportation		Utilities
	Fund		Fund		Fund
Purchases		$76,990,109		$176,551,272	$	243,785,680
Sales		$60,202,490		$175,961,516	$	229,858,413

7.    Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount out-standing per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33 1/3% of a Fund’s net assets, 33 1/3% of a Fund’s assets held by the Custodian or 33 1/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. On September 30, 2010, the Energy Services Fund, Financial Services Fund and Leisure Fund borrowed $235,000, $14,000 and $6,000, respectively, under this agreement. As of and for the period ended September 30, 2010, the Funds did not have any other borrowings under this agreement.

8.    Guggenheim Acquisition

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors, LLC (formerly PADCO Advisors, Inc.), the Funds’ investment adviser (the “Investment Adviser”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Adviser (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction is not expected to result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreements with the Investment Advisers and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

9.    Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

10.   New Accounting Pronouncements

Effective March 31, 2010, the Funds adopted the Financial Accounting Standards Board ASU 2010-06, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements, which are reflected in Note 5.

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5

OTHER INFORMATION (Unaudited)

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 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Proxy Results

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds voted on whether to approve a new investment advisory agreement between Rydex Series Funds and Rydex Advisors, LLC. A description of the number of shares voted is as follows:

			Shares		Shares
Fund	Shares For		Against		Abstained
Banking Fund		117,776		4,330		11,222
Basic Materials Fund		729,746		26,061		39,447
Biotechnology Fund		3,036,987		72,518		78,252
Consumer Products Fund		2,813,832		15,671		34,026
Electronics Fund		344,508		5,672		30,405
Energy Fund		1,491,039		49,762		104,450
Energy Services Fund		863,732		32,688		39,882
Financial Services Fund		131,659		6,247		10,694
Health Care Fund		7,152,654		37,529		74,374
Internet Fund		252,282		6,898		16,462
Leisure Fund		274,614		4,199		8,627
Precious Metals Fund		1,283,647		85,191		94,549
Retailing Fund		407,497		14,789		14,619
Technology Fund		2,982,064		107,705		232,103
Telecommunications Fund		250,684		5,544		9,222
Transportation Fund		482,046		17,018		45,017
Utilities Fund		466,861		13,913		41,497

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds also voted on whether to approve a change to a fundamental investment policy on borrowing money, consistent with applicable law. A description of the number of shares voted is as follows:

			Shares		Shares
Fund	Shares For		Against		Abstained
Banking Fund		84,631		37,495		11,204
Basic Materials Fund		718,319		40,394		36,540
Biotechnology Fund		3,002,777		116,936		68,043
Consumer Products Fund		2,804,558		23,040		35,933
Electronics Fund		334,907		16,250		29,426
Energy Fund		1,445,626		94,316		105,309
Energy Services Fund		848,366		46,183		41,747
Financial Services Fund		128,262		7,944		12,393
Health Care Fund		7,118,045		68,151		78,391
Internet Fund		248,626		11,068		15,948
Leisure Fund		271,142		7,303		8,994
Precious Metals Fund		1,230,011		128,489		104,888
Retailing Fund		402,176		19,200		15,527
Technology Fund		2,954,686		133,477		233,709
Telecommunications Fund		245,788		8,481		11,180
Transportation Fund		478,854		20,650		44,577
Utilities Fund		447,492		26,409		48,370

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6

OTHER INFORMATION (Unaudited) (concluded)

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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7

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and 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.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds – 1997	144
Trustee, Chairman of the	Rydex Variable Trust – 1998
Board (1940)	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds – 1993	144
Trustee (1945)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds – 1995	144
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
Werner E. Keller	Rydex Series Funds – 2005	144
Trustee (1940)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	144
Trustee (1960)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds – 1997	144
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.
Roger Somers	Rydex Series Funds – 1993	144
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	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); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nick Bonos* Vice President and Treasurer (1963)	Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)

*  Officers of the Funds 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 Rydex Investments.

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SEPTEMBER 30, 2010

RYDEX SERIES FUNDS SEMI - ANNUAL REPORT

ALTERNATIVES FUNDS

U. S. LONG SHORT MOMENTUM FUND
(Formerly, All - Cap Opportunity Fund)

INTERNATIONAL LONG SHORT SELECT FUND
(Formerly, International Opportunity Fund)

ALTERNATIVE STRATEGIES ALLOCATION FUND

GLOBAL 130/30 STRATEGY FUND

EQUITY MARKET NEUTRAL FUND
(Formerly, Global Market Neutral Fund)

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

ALTERNATIVE STRATEGIES FUND

LONG SHORT EQUITY STRATEGY FUND

LONG SHORT INTEREST RATE STRATEGY FUND

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, LLC

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS    2

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

ALTERNATIVES FUNDS

U.S. LONG SHORT MOMENTUM FUND   7

INTERNATIONAL LONG SHORT SELECT FUND 15

ALTERNATIVE STRATEGIES ALLOCATION FUND 22

GLOBAL 130/30 STRATEGY FUND 28

EQUITY MARKET NEUTRAL FUND 35

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND 45

ALTERNATIVE STRATEGIES FUND 50

LONG SHORT EQUITY STRATEGY FUND 55

LONG SHORT INTEREST RATE STRATEGY FUND 60

NOTES TO FINANCIAL STATEMENTS 65

OTHER INFORMATION 76

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS 77

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Uncertainty over the strength of the U.S. economic recovery and what steps the Federal Reserve might take, if any, to deal with the situation highlighted the six months ending September 30. Stocks bounced back in the July-September period from losses in the second quarter, based partly on relief that the U.S. may be dealing with a prolonged period of slow growth rather than a sharp economic contraction.

The U.S. economy has been out of recession since July 2009, according to a September report from the National Bureau of Economic Research, although employment, income expectations and existing home sales have yet to rebound. Stocks are now roughly where they were six months ago.

U.S. GDP in the second quarter was 1.7%, widely viewed to be insufficient to move the unemployment rate below its current 9.6% before the end of 2010, and significantly lower than the 3.7% GDP in the first quarter. Economists said consumers are not spending at a rate to cause companies to ramp up production, and thus hiring, with confidence. By late September, many investors were widely anticipating that the Federal Reserve, in response to tepid growth, was prepared to start another round of quantitative easing—bond purchases designed to push down long-term interest rates and kick-start private borrowing.

That prospect was welcomed by investors, who sent equities higher in September, the S&P 500^® Index* having its best September performance since 1939. For the third quarter, U.S. equity indices were up between 10-15% compared with drops of from 1-3% for the past six months. The technology sector was the main contributor to quarterly performance in the S&P 500 and the Russell 2000^® Index, as growth style stocks outperformed value in the third quarter by three percentage points. Emerging markets continued to outperform, with investors continuing to pour money into emerging markets equities funds—$50 billion so far in 2010. Emerging markets are being viewed as less risky than in the recent past, particularly since nations in that sector are not confronting the fiscal debt issues facing many countries in the developed world, and are enjoying healthy economic growth.

Corporations continued to borrow aggressively, based on investor demand for bonds and low interest rates, driving hefty investment-grade bond sales as well as sales of high-yield bonds (where issuance through the third quarter has already surpassed the previous annual record). Various bond indices were up both for the third quarter and six months, led by indices for U.S. Government bond prices and corporate high yield bonds. The expectation of quantitative easing also lifted Treasury prices, despite concerns of a building price bubble in bonds. The Bank of America U.S. Government Index was up almost 3% for the third quarter, while the yield on the benchmark 10-year note closed out September at about 2.5%, down from its 2010 peak of just above 4% in April. U.S. debt also benefited as a safe haven from resurgent worries about the economic health of European nations, including more recently Ireland and Portugal.

Investors have also been flocking to gold, driving the price of an ounce of the metal to a non-inflation-adjusted record of around $1,300. Economists said gold’s appeal was both as a hedge against further financial market instability and to assuage investors worried about the inflationary impact of additional Fed easing and massive levels of government debt. Efforts by central banks around the world to boost their economies by keeping their currencies weaker, thus helping exports, may also be contributing to the rise in the price of gold, which is attractive as an alternative store of value. Continuing economic sluggishness in the U.S. caused the dollar to weaken against the euro and yen throughout the summer, as analysts said the economies behind those currencies are in something of a standoff over which has the worst outlook. The third quarter was good for other commodities, in part a response to strong demand in China, crop failures in Russia and the potential for further monetary easing. Grain prices began to fall late in the quarter, as high U.S. yields were expected to offset concerns about shortages in some crops like wheat.

2    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

LETTER TO OUR SHAREHOLDERS (concluded)

High inventory and slack demand combined to keep the price of a barrel of oil stuck in a narrow range, although it traded toward the high end ($82) of the range by September.

In contrast to the second quarter, when worries about European sovereign debt and a possible double-dip recession in the U.S. loomed large, stocks in countries around the world had strong gains in the third quarter. The MSCI EAFE Index was up 15% for the third quarter and the MSCI EAFE Emerging Markets Index* was up 18%. The latter index was among the best-performing indices for the past six months, up 6%. Markets in Southeast Asia, including Indonesia and Philippines, were at all-time highs, while India and South Korea also flirted with record highs. The domestic stock market of China, which this year is expected to overtake Japan as the world’s second-largest economy, pared its loss for the year, gaining 11% in the third quarter, as investors think the government may be reducing its efforts to rein in the economy. The STOXX 50^®* Index also offset year-to-date losses with a 7% rise in the third quarter, despite a weak outlook issued by the European Central Bank. The Nikkei-225 Stock Average Index*, off 11% for the year, rose 6% in September, helped in part by foreign exchange market intervention designed to hold down the value of the yen.

Rydex|SGI has a full lineup of fundamental alpha, target beta and alternative investment products designed to provide investors with the tools needed to participate in all types of markets and market environments. Contact us if you wish to learn more, and thanks for the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

*Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500) – a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Nikkei-225 Stock Average Index – a price-weighted index of 225 blue-chip companies traded on the Tokyo Stock Exchange.

MSCI EAFE Index (Europe, Australasia, Far East) – a market-capitalization index designed to measure equity market performance in developed markets, excluding the U.S. & Canada. Consists in 2010 of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

MSCI EAFE Emerging Markets – a market-capitalization index designed to measure equity market performance in emerging markets. Consists in 2010 of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The STOXX 50^® Index – Europe’s leading Blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The STOXX 50 Index is licensed to financial institutions to serve as underlying for a wide range of investment products such as Exchange Traded Funds (ETF), Futures and Options, and structured products world-wide.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and 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 investors understand the ongoing costs (in dollars) of investing in a 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, 2010 and ending September 30, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Certain retirement plans such as IRA, SEP, Roth IRA, 403(b), and Rydex|SGI prototype money purchase plan and profit sharing plan accounts, are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found 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.

4    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

						Beginning		Ending		Expenses
	Expense			Fund		Account Value		Account Value		Paid During
	Ratio		1	Return		March 31, 2010		September 30, 2010		Period2
Table 1. Based on actual Fund return3
U.S. Long Short Momentum Fund
A-Class		1.70%			(2.94%)	$	1,000.00	$	970.60	$	8.40
C-Class		2.45%			(3.38%)		1,000.00		966.20		12.08
H-Class		1.70%			(2.93%)		1,000.00		970.70		8.40
International Long Short Select Fund
A-Class		2.48%			(8.59%)		1,000.00		914.10		11.90
C-Class		3.22%			(8.90%)		1,000.00		911.00		15.43
H-Class		2.47%			(8.59%)		1,000.00		914.10		11.85
Alternative Strategies Allocation Fund6
A-Class		0.00%			(2.88%)		1,000.00		971.20		—
C-Class		0.75%			(3.27%)		1,000.00		967.30		3.70
H-Class		0.00%			(2.88%)		1,000.00		971.20		—
Global 130/30 Strategy Fund
A-Class		3.39%			0.87%		1,000.00		1,008.70		17.07
C-Class		4.13%			0.59%		1,000.00		1,005.90		20.77
H-Class		3.46%			0.98%		1,000.00		1,009.80		17.43
Equity Market Neutral Fund
A-Class		5.41%			(2.23%)		1,000.00		977.70		26.82
C-Class		6.16%			(2.64%)		1,000.00		973.60		30.48
H-Class		5.41%			(2.27%)		1,000.00		977.30		26.82
Institutional Class5		5.59%			(2.65%)		1,000.00		973.50		22.82
Event Driven and Distressed Strategies Fund4
A-Class		1.90%			7.36%		1,000.00		1,073.60		4.97
C-Class		2.65%			7.04%		1,000.00		1,070.40		6.91
H-Class		1.90%			7.36%		1,000.00		1,073.60		4.97
Institutional Class		1.65%			7.40%		1,000.00		1,074.00		4.31
Alternative Strategies Fund4
A-Class		1.90%			4.48%		1,000.00		1,044.80		4.90
C-Class		2.65%			4.28%		1,000.00		1,042.80		6.82
H-Class		1.90%			4.48%		1,000.00		1,044.80		4.90
Institutional Class		1.64%			4.52%		1,000.00		1,045.20		4.23
Long Short Equity Strategy Fund4
A-Class		2.45%			6.64%		1,000.00		1,066.40		6.38
C-Class		3.29%			6.44%		1,000.00		1,064.40		8.56
H-Class		2.47%			6.64%		1,000.00		1,066.40		6.43
Institutional Class		2.21%			6.72%		1,000.00		1,067.20		5.76
Long Short Interest Rate Strategy Fund4
A-Class		1.51%			2.60%		1,000.00		1,026.00		3.86
C-Class		2.26%			2.40%		1,000.00		1,024.00		5.76
H-Class		1.51%			2.60%		1,000.00		1,026.00		3.86
Institutional Class		1.26%			2.64%		1,000.00		1,026.40		3.22

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

						Beginning		Ending		Expenses
	Expense			Fund		Account Value		Account Value		Paid During
	Ratio		1	Return		March 31, 2010		September 30, 2010		Period2
Table 2. Based on hypothetical 5% return (before expenses)
U.S. Long Short Momentum Fund
A-Class		1.70%			5.00%	$	1,000.00	$	1,016.55	$	8.59
C-Class		2.45%			5.00%		1,000.00		1,012.78		12.36
H-Class		1.70%			5.00%		1,000.00		1,016.55		8.59
International Long Short Select Fund
A-Class		2.48%			5.00%		1,000.00		1,012.63		12.51
C-Class		3.22%			5.00%		1,000.00		1,008.92		16.22
H-Class		2.47%			5.00%		1,000.00		1,012.68		12.46
Alternative Strategies Allocation Fund6
A-Class		0.00%			5.00%		1,000.00		1,025.07		—
C-Class		0.75%			5.00%		1,000.00		1,021.31		3.80
H-Class		0.00%			5.00%		1,000.00		1,025.07		—
Global 130/30 Strategy Fund
A-Class		3.39%			5.00%		1,000.00		1,008.07		17.07
C-Class		4.13%			5.00%		1,000.00		1,004.36		20.75
H-Class		3.46%			5.00%		1,000.00		1,007.72		17.41
Equity Market Neutral Fund
A-Class		5.41%			5.00%		1,000.00		997.94		27.10
C-Class		6.16%			5.00%		1,000.00		994.18		30.79
H-Class		5.41%			5.00%		1,000.00		997.94		27.10
Institutional Class5		5.59%			5.00%		1,000.00		997.04		27.99
Event Driven and Distressed Strategies Fund4
A-Class		1.90%			5.00%		1,000.00		1,015.54		9.60
C-Class		2.65%			5.00%		1,000.00		1,011.78		13.36
H-Class		1.90%			5.00%		1,000.00		1,015.54		9.60
Institutional Class		1.65%			5.00%		1,000.00		1,016.80		8.34
Alternative Strategies Fund4
A-Class		1.90%			5.00%		1,000.00		1,015.54		9.60
C-Class		2.65%			5.00%		1,000.00		1,011.78		13.36
H-Class		1.90%			5.00%		1,000.00		1,015.54		9.60
Institutional Class		1.64%			5.00%		1,000.00		1,016.85		8.29
Long Short Equity Strategy Fund4
A-Class		2.45%			5.00%		1,000.00		1,012.78		12.36
C-Class		3.29%			5.00%		1,000.00		1,008.57		16.57
H-Class		2.47%			5.00%		1,000.00		1,012.68		12.46
Institutional Class		2.21%			5.00%		1,000.00		1,013.99		11.16
Long Short Interest Rate Strategy Fund4
A-Class		1.51%			5.00%		1,000.00		1,017.50		7.64
C-Class		2.26%			5.00%		1,000.00		1,013.74		11.41
H-Class		1.51%			5.00%		1,000.00		1,017.50		7.64
Institutional Class		1.26%			5.00%		1,000.00		1,018.75		6.38

1	This ratio represents annualized Total Expenses, which include interest and dividend expense from securities sold short. Excluding short dividend and interest expense, the operating expense ratio would be:
	U.S. Long Short Momentum Fund 0.02%, 0.02%, and 0.02% lower in the A-Class, C-Class and H-Class, respectively; International Long Short Select Fund 0.72%, 0.72% and 0.71% lower in the A-Class, C-Class and H-Class, respectively; Global 130/30 Strategy Fund 1.24%, 1.17% and 1.28% lower in the A-Class, C-Class and H-Class, respectively; Equity Market Neutral Fund 3.12%, 3.12%, 3.12% and 3.53% lower in the A-Class, C-Class, H-Class and Institutional Class, respectively; Long Short Equity Strategy Fund 0.55%, 0.65%, 0.58%, and 0.56% lower in the A-Class, C-Class, H-Class and Institutional Class, respectively;
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
3	Actual cumulative return of net asset value for the period March 31, 2010 to September 30, 2010.
4	Since the commencement of operations: June 30, 2010
5	Since the commencement of operations: May 3, 2010 — Institutional Class.
6	Does not include expenses of the underlying funds in which the Fund invests.

6    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

U.S. LONG SHORT MOMENTUM FUND
(Formerly, All-Cap Opportunity Fund)

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Amazon.com, Inc.	3.2	%
Brookfield Asset Management, Inc. — Class A	2.5	%
Vodafone Group plc ADR	2.2	%
AT&T, Inc.	1.9	%
Priceline.com, Inc.	1.8	%
America Movil SAB de CV ADR	1.7	%
Philip Morris International, Inc.	1.6	%
Brookfield Properties Corp.	1.6	%
CB Richard Ellis Group, Inc. — Class A	1.5	%
Verizon Communications, Inc.	1.4	%
Top Ten Total	19.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    7

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  U.S. LONG SHORT MOMENTUM FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 93.8%
Financials - 17.4%
Brookfield Asset Management,
Inc. — Class A		145,491	$	4,127,580
Brookfield Properties Corp.		175,624		2,725,684
CB Richard Ellis Group, Inc. — Class A*		136,290		2,491,381
Jones Lang LaSalle, Inc.		23,775		2,051,069
Simon Property Group, Inc.		17,182		1,593,459
St. Joe Co.*		54,559		1,356,882
Forest City Enterprises, Inc. — Class A*		97,373		1,249,296
Public Storage		12,825		1,244,538
Vornado Realty Trust		14,388		1,230,606
Equity Residential		23,604		1,122,842
Boston Properties, Inc.		12,446		1,034,512
HCP, Inc.		27,980		1,006,720
Annaly Capital Management, Inc.		53,517		941,899
Host Hotels & Resorts, Inc.		61,682		893,155
AvalonBay Communities, Inc.		8,421		875,195
Ventas, Inc.		16,898		871,430
Kimco Realty Corp.		49,103		773,372
Health Care REIT, Inc.		15,837		749,724
Forestar Group, Inc.*		41,865		713,798
Macerich Co.		16,481		707,859
Plum Creek Timber Company, Inc.		19,853		700,811
Digital Realty Trust, Inc.		10,902		672,653
China Housing & Land Development, Inc.*		87,065		174,130
Total Financials				29,308,595
Consumer Discretionary - 17.1%
Amazon.com, Inc.*		34,611		5,436,004
Priceline.com, Inc.*		8,562		2,982,487
NetFlix, Inc.*		13,980		2,266,997
Expedia, Inc.		66,303		1,870,408
McDonald’s Corp.		24,580		1,831,456
Liberty Media Corporation -
Interactive*		119,322		1,635,905
Carnival Corp.		28,750		1,098,537
Las Vegas Sands Corp.*		30,850		1,075,122
Yum! Brands, Inc.		21,620		995,817
Starbucks Corp.		36,460		932,647
HSN, Inc.*		26,604		795,460
Marriott International, Inc. —
Class A		21,800		781,094
Starwood Hotels & Resorts
Worldwide, Inc.		13,090		687,879
Wynn Resorts Ltd.		7,880		683,748
Royal Caribbean Cruises Ltd.*		19,310		608,844
Shutterfly, Inc.*		21,202		551,040

			MARKET
	SHARES		VALUE
MGM Resorts International*		45,280	$	510,758
Chipotle Mexican Grill, Inc. — Class A*		2,930		503,960
Darden Restaurants, Inc.		11,770		503,521
Wyndham Worldwide Corp.		17,910		491,988
NutriSystem, Inc.		25,098		482,886
Blue Nile, Inc.*		10,226		454,955
International Game Technology		28,890		417,460
Panera Bread Co. — Class A*		3,950		350,009
PetMed Express, Inc.		19,840		347,200
Overstock.com, Inc.*		21,467		337,461
Vitacost.com, Inc.*		34,500		207,345
Total Consumer Discretionary				28,840,988
Telecommunication Services - 16.2%
Vodafone Group plc ADR		146,780		3,641,612
AT&T, Inc.		109,410		3,129,126
America Movil SAB de CV ADR		53,310		2,843,022
Verizon Communications, Inc.		71,540		2,331,489
Deutsche Telekom AG ADR		135,670		1,849,182
American Tower Corp. —
Class A*		29,520		1,513,195
Crown Castle International Corp.*		27,110		1,196,906
Sprint Nextel Corp.*		253,730		1,174,770
CenturyLink, Inc.		21,550		850,363
NII Holdings, Inc.*		20,640		848,304
Qwest Communications
International, Inc.		130,560		818,611
SBA Communications Corp. — Class A*		17,640		710,892
Frontier Communications Corp.		84,160		687,587
MetroPCS Communications, Inc.*		63,170		660,758
Windstream Corp.		48,130		591,518
United States Cellular Corp.*		11,030		507,049
Clearwire Corp. — Class A*		62,530		505,868
Tele Norte Leste Participacoes
S.A. ADR		31,570		444,506
Syniverse Holdings, Inc.*		18,640		422,569
Telephone & Data Systems, Inc.		12,620		413,936
tw telecom inc — Class A*		21,390		397,212
Leap Wireless International, Inc.*		28,500		351,975
AboveNet, Inc.*		5,200		270,868
Level 3 Communications, Inc.*		279,410		261,891
PAETEC Holding Corp.*		46,350		190,499
Consolidated Communications
Holdings, Inc.		9,800		182,966
Cincinnati Bell, Inc.*		63,460		169,438
Iridium Communications, Inc.*		19,830		169,348
Vonage Holdings Corp.*		41,120		104,856
Total Telecommunication Services				27,240,316

8    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

  U.S. LONG SHORT MOMENTUM FUND

			MARKET
	SHARES		VALUE
Utilities - 16.2%
Dominion Resources, Inc.		35,250	$	1,539,015
Southern Co.		38,970		1,451,243
Exelon Corp.		32,090		1,366,392
Duke Energy Corp.		71,610		1,268,213
NextEra Energy, Inc.		22,780		1,239,004
PG&E Corp.		27,220		1,236,332
Public Service Enterprise
Group, Inc.		36,170		1,196,504
Sempra Energy		20,930		1,126,034
Consolidated Edison, Inc.		23,070		1,112,435
American Electric Power
Company, Inc.		29,440		1,066,611
Xcel Energy, Inc.		42,440		974,847
Entergy Corp.		12,650		968,104
Progress Energy, Inc.		21,200		941,704
PPL Corp.		33,750		919,013
Edison International		25,680		883,135
FirstEnergy Corp.		22,680		874,087
Ameren Corp.		28,590		811,956
DTE Energy Co.		17,550		806,072
CenterPoint Energy, Inc.		50,600		795,432
Wisconsin Energy Corp.		13,720		793,016
SCANA Corp.		16,720		674,150
NiSource, Inc.		38,720		673,728
NSTAR		15,810		622,124
Alliant Energy Corp.		16,830		611,771
Northeast Utilities		20,330		601,158
OGE Energy Corp.		14,870		592,867
Pinnacle West Capital Corp.		13,610		561,685
Pepco Holdings, Inc.		29,600		550,560
Allegheny Energy, Inc.		21,690		531,839
DPL, Inc.		17,210		449,697
Total Utilities				27,238,728
Consumer Staples - 9.9%
Philip Morris International, Inc.		49,000		2,744,980
Avon Products, Inc.		63,070		2,025,178
Altria Group, Inc.		79,480		1,909,110
Estee Lauder Companies, Inc.
— Class A		24,000		1,517,520
Alberto-Culver Co. — Class B		29,770		1,120,841
Reynolds American, Inc.		18,470		1,096,933
Herbalife Ltd.		17,350		1,047,072
NBTY, Inc.*		17,740		975,345
Lorillard, Inc.		11,540		926,777
Nu Skin Enterprises, Inc. —
Class A		25,450		732,960
Revlon, Inc. — Class A*		35,550		448,641
Elizabeth Arden, Inc.*		21,190		423,588
Prestige Brands Holdings, Inc.*		42,620		421,512
USANA Health Sciences, Inc.*		10,220		412,479
Medifast, Inc.*		12,610		342,109
Vector Group Ltd.		16,894		315,918
Universal Corp.		6,080		243,747
Total Consumer Staples				16,704,710

			MARKET
	SHARES		VALUE
Industrials - 9.5%
Southwest Airlines Co.		104,460	$	1,365,292
Delta Air Lines, Inc.*		109,150		1,270,506
Caterpillar, Inc.		11,880		934,718
United Continental Holdings,
Inc.*		37,500		886,125
Continental Airlines, Inc. —
Class B*		33,370		828,911
Deere & Co.		10,100		704,778
Danaher Corp.		16,860		684,685
Illinois Tool Works, Inc.		13,940		655,459
JetBlue Airways Corp.*		93,960		628,592
AMR Corp.*		96,310		603,864
Alaska Air Group, Inc.*		11,470		585,314
Copa Holdings S.A. — Class A		10,710		577,376
Cummins, Inc.		6,250		566,125
AirTran Holdings, Inc.*		73,080		537,138
US Airways Group, Inc.*		57,470		531,598
PACCAR, Inc.		10,800		520,020
Eaton Corp.		5,660		466,893
Parker Hannifin Corp.		6,340		444,181
Ingersoll-Rand plc		11,530		411,736
Dover Corp.		7,850		409,849
Allegiant Travel Co. — Class A		9,350		395,692
CNH Global N.V.		10,530		385,819
Skywest, Inc.		27,080		378,037
Joy Global, Inc.		5,160		362,851
Flowserve Corp.		3,050		333,731
Bucyrus International, Inc. —
Class A		4,440		307,914
Pall Corp.		6,910		287,732
Total Industrials				16,064,936
Materials - 7.5%
E. I. du Pont de Nemours & Co.		28,430		1,268,547
Potash Corporation of
Saskatchewan, Inc.		8,580		1,235,863
Dow Chemical Co.		41,970		1,152,496
Praxair, Inc.		11,400		1,028,964
Mosaic Co.		16,650		978,354
Syngenta AG ADR		19,350		963,437
Monsanto Co.		19,810		949,493
Air Products & Chemicals, Inc.		10,210		845,592
PPG Industries, Inc.		9,590		698,152
Agrium, Inc.		9,170		687,658
Ecolab, Inc.		13,480		683,975
Sherwin-Williams Co.		7,570		568,810
Sigma-Aldrich Corp.		9,110		550,062
Lubrizol Corp.		5,180		548,925
CF Industries Holdings, Inc.		5,300		506,150
Total Materials				12,666,478
Total Common Stocks
(Cost $146,263,175)				158,064,751

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    9

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

  U.S. LONG SHORT MOMENTUM FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,1 - 5.7%
Mizuho Financial Group, Inc.
issued 09/30/10 at 0.20%
due 10/01/10		$3,652,118	$	3,652,118
HSBC Group
issued 09/30/10 at 0.20%
due 10/01/10		3,648,052		3,648,052
Morgan Stanley
issued 09/30/10 at 0.19%
due 10/01/10		1,507,460		1,507,460
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/10		385,143		385,143
Deutsche Bank
issued 09/30/10 at 0.20%
due 10/01/10		376,865		376,865
Total Repurchase Agreements
(Cost $9,569,638)				9,569,638
Total Investments - 99.5%
(Cost $155,832,813)			$	167,634,389
Cash & Other Assets,
Less Liabilities - 0.5%				786,285
Total Net Assets - 100.0%			$	168,420,674
			Unrealized
		CONTRACTS	LOSS
FUTURES CONTRACTS SOLD SHORT†
December 2010 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $14,313,600)		252	$	(626,548	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
	ADR — American Depositary Receipt.
	REIT — Real Estate Investment Trust
	plc — Public Limited Company

10    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  U.S. LONG SHORT MOMENTUM FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	158,064,751
Repurchase agreement, at value		9,569,638
Total investments		167,634,389
Segregated cash with broker		1,134,000
Cash		25,075
Receivables:
Variation margin		61,740
Fund shares sold		61,174
Dividends		243,063
Interest		52
Total assets		169,159,493
Liabilities:
Payable for:
Fund shares redeemed		401,944
Management fees		123,618
Custodian fees		4,532
Transfer agent/maintenance fees		34,338
Distribution and service fees		66,317
Portfolio accounting fees		13,735
Other		94,335
Total liabilities		738,819
Net assets	$	168,420,674
Net assets consist of:
Paid in capital		256,320,947
Accumulated net investment loss		(426,040	)
Accumulated net realized loss on sale of
investments		(98,649,261	)
Net unrealized appreciation in value of
investments		11,175,028
Net assets		168,420,674
A-Class:
Net assets	$	27,876,301
Capital shares outstanding		2,281,425
Net asset value per share		$12.22
Maximum offering price per share*		$12.83
C-Class:
Net assets	$	52,173,974
Capital shares outstanding		4,554,931
Net asset value per share		$11.45
H-Class:
Net assets	$	88,370,399
Capital shares outstanding		7,209,045
Net asset value per share		$12.26
Investments, at cost	$	146,263,175
Repurchase agreement, at cost		9,569,638
Total cost	$	155,832,813

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding
tax of $11,951)	$	1,300,438
Interest		5,422
Total investment income		1,305,860
Expenses:
Management fees		804,003
Transfer agent and administrative fees		223,334
Distribution and Service Fees:
A-Class		38,331
C-Class		285,583
H-Class		113,608
Portfolio accounting fees		89,333
Trustees’ fees**		7,155
Short sales dividend expense		13,586
Prime broker interest expense		4,829
Miscellaneous		152,138
Total expenses		1,731,900
Net investment loss		(426,040	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		7,711,505
Futures contracts		(147,732	)
Securities sold short		(1,071,051	)
Net realized gain		6,492,722
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		(12,587,726	)
Futures contracts		(626,548	)
Net unrealized depreciation		(13,214,274	)
Net loss		(6,721,552	)
Net decrease in net assets resulting
from operations	$	(7,147,592	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    11

  U.S. LONG SHORT MOMENTUM FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(426,040	)	$	(1,691,200	)
Net realized gain during the period on investments		6,492,722			49,744,867
Net unrealized appreciation (depreciation) during the period on investments		(13,214,274	)		22,166,738
Net increase (decrease) in net assets resulting from operations		(7,147,592	)		70,220,405
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		4,041,188			16,336,174
C-Class		2,607,789			7,596,790
H-Class		20,556,060			42,371,395
Redemption fees collected
A-Class		1,639			3,166
C-Class		3,070			5,697
H-Class		4,899			7,927
Cost of shares redeemed
A-Class		(11,194,679	)		(25,309,254	)
C-Class		(12,942,428	)		(23,736,570	)
H-Class		(28,075,890	)		(52,726,299	)
Net decrease from capital share transactions		(24,998,352	)		(35,450,974	)
Net increase (decrease) in net assets		(32,145,944	)		34,769,431
Net assets:
Beginning of period		200,566,618			165,797,187
End of period	$	168,420,674		$	200,566,618
Accumulated net investment income (loss) at end of period	$	(426,040	)	$	—
Capital share activity:
Shares sold
A-Class		341,008			1,495,974
C-Class		226,009			718,311
H-Class		1,726,782			3,958,395
Shares redeemed
A-Class		(936,623	)		(2,322,899	)
C-Class		(1,149,895	)		(2,312,679	)
H-Class		(2,386,578	)		(4,887,679	)
Total capital share activity		(2,179,297	)		(3,350,577	)

12    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  U.S. LONG SHORT MOMENTUM FUND

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.

	Period
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.59			$8.62			$13.45			$14.08			$14.15			$11.10
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.07	)		.01			(.01	)		(.01	)		(.04	)
Net gain (loss) on securities (realized and unrealized)		(.35	)		4.04			(4.84	)		.30			.38			3.09
Total from investment operations		(.37	)		3.97			(4.83	)		.29			.37			3.05
Less distributions:
Distributions from realized gains		—			—			—			(.93	)		(.44	)		—
Total distributions		—			—			—			(.93	)		(.44	)		—
Redemption fees collected		—	c		—	c		—	c		.01			—	c		—
Net asset value, end of period		$12.22			$12.59			$8.62			$13.45			$14.08			$14.15
Total Returnd		(2.94%	)		46.06%			(35.91%	)		1.50%			2.75%			27.48%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$27,876			$36,231			$31,925			$49,148			$39,804			$30,593
Ratios to average net assets:
Net investment income (loss)		(0.25%	)		(0.62%	)		0.13%			(0.08%	)		(0.09%	)		(0.33%	)
Total expenses		1.70%			1.68%			1.69%			1.65%			1.64%			1.67%
Operating expensese		1.68%			1.68%			1.69%			1.65%			1.64%			1.67%
Portfolio turnover rate		131%			375%			528%			278%			373%			263%

	Period
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$11.85			$8.17			$12.85			$13.58			$13.76			$10.87
Income (loss) from investment operations:
Net investment lossb		(.06	)		(.14	)		(.07	)		(.12	)		(.11	)		(.12	)
Net gain (loss) on securities (realized and unrealized)		(.34	)		3.82			(4.61	)		.31			.37			3.01
Total from investment operations		(.40	)		3.68			(4.68	)		.19			.26			2.89
Less distributions:
Distributions from realized gains		—			—			—			(.93	)		(.44	)		—
Total distributions		—			—			—			(.93	)		(.44	)		—
Redemption fees collected		—	c		—	c		—	c		.01			—	c		—
Net asset value, end of period		$11.45			$11.85			$8.17			$12.85			$13.58			$13.76
Total Returnd		(3.38%	)		45.04%			(36.42%	)		0.81%			2.02%			26.59%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$52,174			$64,918			$57,792			$115,136			$118,422			$118,083
Ratios to average net assets:
Net investment loss		(1.00%	)		(1.37%	)		(0.66%	)		(0.80%	)		(0.86%	)		(0.95%	)
Total expenses		2.45%			2.43%			2.44%			2.41%			2.39%			2.41%
Operating expensese		2.43%			2.43%			2.44%			2.41%			2.39%			2.41%
Portfolio turnover rate		131%			375%			528%			278%			373%			263%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    13

  U.S. LONG SHORT MOMENTUM FUND

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.

	Period
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$12.63			$8.65			$13.49			$14.12			$14.18			$11.12
Income (loss) from investment operations:
Net investment lossb		(.01	)		(.07	)		(—	)f		(.02	)		(.02	)		(.03	)
Net gain (loss) on securities (realized and unrealized)		(.36	)		4.05			(4.84	)		.31			.40			3.09
Total from investment operations		(.37	)		3.98			(4.84	)		.29			.38			3.06
Less distributions:
Distributions from realized gains		—			—			—			(.93	)		(.44	)		—
Total distributions		—			—			—			(.93	)		(.44	)		—
Redemption fees collected		—	c		—	c		—	c		.01			—	c		—
Net asset value, end of period		$12.26			$12.63			$8.65			$13.49			$14.12			$14.18
Total Returnd		(2.93%	)		46.01%			(35.88%	)		1.50%			2.81%			27.52%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$88,370			$99,418			$76,080			$178,949			$140,774			$246,029
Ratios to average net assets:
Net investment loss		(0.22%	)		(0.63%	)		(0.01%	)		(0.13%	)		(0.16%	)		(0.25%)
Total expenses		1.70%			1.68%			1.68%			1.65%			1.65%			1.66%
Operating expensese		1.68%			1.68%			1.68%			1.65%			1.65%			1.66%
Portfolio turnover rate		131%			375%			528%			278%			373%			263%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Redemption fees collected are less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Operating expenses exclude interest and dividend expense from securities sold short.
f	Net investment loss is less than $0.01 per share.

14    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

INTERNATIONAL LONG SHORT SELECT FUND
(Formerly, International Opportunity Fund)

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	August 31, 2007
C-Class	August 31, 2007
H-Class	August 31, 2007

Ten Largest Long Holdings (% of Total Net Assets)
Fresenius Medical Care AG & Co. KGaA	4.3	%
Apple, Inc.	4.2	%
Hitachi Ltd.	4.2	%
ACE Ltd.	3.9	%
CNOOC Ltd.	3.9	%
Julius Baer Group Ltd.	3.7	%
Standard Chartered plc	3.7	%
Sony Financial Holdings, Inc.	3.3	%
Exxaro Resources Ltd.	3.1	%
BNP Paribas	3.0	%
Top Ten Total	37.3	%

“Ten Largest Long Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    15

2

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  INTERNATIONAL LONG SHORT SELECT FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 84.5%
Financials - 21.3%
ACE Ltd.1		3,600	$	209,700
Julius Baer Group Ltd.		5,556		202,257
Standard Chartered plc1		7,019		201,457
Sony Financial Holdings, Inc.		54		175,936
BNP Paribas		2,298		163,456
Toronto-Dominion Bank1		1,425		103,111
Banco Santander S.A.1		7,806		99,159
Total Financials				1,155,076
Information Technology - 16.7%
Apple, Inc.1*		807		228,986
Hitachi Ltd.		51,565		225,444
Mastercard, Inc. — Class A		709		158,816
Software AG		1,300		157,039
Xerox Corp.1		13,200		136,620
Total Information Technology				906,905
Consumer Discretionary - 11.3%
Kingfisher plc		41,333		152,138
Compass Group plc1		17,585		146,553
Wynn Macau Ltd.*		72,800		125,917
ProSiebenSat. Media AG1		4,197		99,739
Renault S.A.		1,739		89,493
Total Consumer Discretionary				613,840
Industrials - 7.8%
Deutsche Lufthansa AG		6,080		111,785
Marubeni Corp.		19,000		107,421
Amada Company Ltd.		15,000		102,773
SembCorp Marine Ltd.		34,000		101,612
Total Industrials				423,591
Consumer Staples - 7.3%
Koninklijke Ahold N.V.		11,570		155,981
Marine Harvest ASA		147,556		128,599
Imperial Tobacco Group plc		3,777		112,559
Total Consumer Staples				397,139
Materials - 6.0%
Exxaro Resources Ltd.		9,611		166,054
Osisko Mining Corp.1*		11,100		158,048
Total Materials				324,102
Energy - 5.9%
CNOOC Ltd.		108,000		209,349
Royal Dutch Shell plc1 — Class A		3,640		109,563
Total Energy				318,912
Health Care - 4.3%
Fresenius Medical Care AG & Co. KGaA1		3,746		231,389

			MARKET
	SHARES		VALUE
Telecommunication Services - 3.9%
Koninklijke KPN N.V.		6,999	$	108,261
Deutsche Telekom AG		7,475		102,272
Total Telecommunication Services				210,533
Total Common Stocks (Cost $4,046,504)				4,581,487
		FACE
		AMOUNT
REPURCHASE AGREEMENTS††,2 - 22.9%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10	$	473,867		473,867
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		473,340		473,340
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		195,595		195,595
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		49,973		49,973
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		48,899		48,899
Total Repurchase Agreements (Cost $1,241,674)				1,241,674
Total Long Securities - 107.4% (Cost $5,288,178)				$5,823,161
		SHARES
COMMON STOCKS SOLD SHORT† - (27.1)%
Health Care - (2.5)%
William Demant Holding AS*		1,803	$	(133,052	)
Consumer Staples - (3.3)%
Kao Corp.		7,400		(180,291	)
Energy - (5.8)%
Showa Shell Sekiyu KK		19,100		(145,964	)
Neste Oil Oyj		10,910		(170,466	)
Total Energy				(316,430	)
Financials - (6.4)%
Banco de Sabadell S.A.		22,587		(113,143	)
Insurance Australia Group Ltd.		32,466		(114,197	)
Bankinter S.A.		16,816		(116,860	)
Total Financials				(344,200	)

16    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)  

September 30, 2010

 INTERNATIONAL LONG SHORT SELECT FUND

			MARKET
	SHARES		VALUE
Information Technology - (9.1)%
STMicroelectronics N.V.		6,100	$	(46,543	)
LSI Corp.*		11,000		(50,160	)
Intersil Corp.		4,700		(54,943	)
Solarworld AG		7,353		(92,232	)
Foxconn International Holdings Ltd.*		146,895		(107,915	)
Semiconductor Manufacturing International Corp.*		1,986,000		(143,340	)
Total Information Technology				(495,133	)
Total Common Stocks Sold Short (Proceeds $1,331,353)			$	(1,469,106	)
Cash, Other Assets, Less Liabilities 19.7%				1,066,438
Total Net Assets - 100.0%			$	5,420,493

Country Diversification

The pie chart above reflects percentages of
the market value of Long Stocks.

Country Diversification

The pie chart above reflects percentages of
the market value of Short Stocks.

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	All or a portion of this security is pledged as short security collateral at September 30, 2010.
2	Repurchase Agreements — See Note 6.
	plc — Public Limited Company

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    17

  INTERNATIONAL LONG SHORT SELECT FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	4,581,487
Repurchase agreement, at value		1,241,674
Total investments		5,823,161
Segregated cash with broker		1,139,908
Foreign currency, at value		1,484
Receivables:
Securities sold		113,797
Fund shares sold		3,492
Dividends		12,237
Interest		55
Forward exchange		59,896
Other assets		898
Total assets		7,154,928
Liabilities:
Overdraft due to custodian bank		1,492
Securities sold short, at value		1,469,106
Payable for:
Securities purchased		181,604
Fund shares redeemed		1,839
Management fees		3,794
Custodian fees		1,023
Transfer agent/maintenance fees		1,054
Distribution and service fees		1,724
Portfolio accounting fees		421
Interest		8,265
Forward exchange		59,948
Other		4,165
Total liabilities		1,734,435
Net assets	$	5,420,493
Net assets consist of:
Paid in capital		19,561,099
Accumulated net investment loss		(190,369	)
Accumulated net realized loss on sale of investments		(14,347,311	)
Net unrealized appreciation in value of investments		397,074
Net assets		5,420,493
A-Class:
Net assets	$	1,085,245
Capital shares outstanding		57,926
Net asset value per share		$18.73
Maximum offering price per share*		$19.66
C-Class:
Net assets	$	1,083,617
Capital shares outstanding		59,164
Net asset value per share		$18.32
H-Class:
Net assets	$	3,251,631
Capital shares outstanding		173,493
Net asset value per share		$18.74
Investments, at cost	$	4,046,504
Repurchase agreement, at cost		1,241,674
Total cost	$	5,288,178
Securities sold short, proceeds		1,331,353
Foreign Currency, at cost		1,640

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $3,956)	$	38,759
Interest		144
Total investment income		38,903
Expenses:
Management fees		45,065
Transfer agent and administrative fees		12,518
Distribution and Service Fees:
A-Class		3,593
C-Class		6,122
H-Class		7,395
Portfolio accounting fees		5,007
Trustees’ fees**		642
Short sales dividend expense		14,921
Prime broker interest expense		21,002
Registration		10,184
Miscellaneous		1,996
Total expenses		128,445
Net investment loss		(89,542	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(293,567	)
Futures contracts		(1,725,542	)
Foreign currency		(171,553	)
Securities sold short		(277,328	)
Net realized loss		(2,467,990	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		131,434
Futures contracts		108,090
Foreign currency		9,179
Securities sold short		(137,753	)
Net unrealized appreciation		110,950
Net loss		(2,357,040	)
Net decrease in net assets resulting from operations	$	(2,446,582	)

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

18    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  INTERNATIONAL LONG SHORT SELECT FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(89,542	)	$	(52,885	)
Net realized gain (loss) during the period on investments		(2,467,990	)		4,875,943
Net unrealized appreciation (depreciation) during the period on investments		110,950			(320,152	)
Net increase (decrease) in net assets resulting from operations		(2,446,582	)		4,502,906
Distributions to shareholders from:
Net investment income
A-Class		—			(13,643	)
C-Class		—			(5,782	)
H-Class		—			(39,039	)
Total distributions to shareholders		—			(58,464	)
Capital share transactions:
Proceeds from sale of shares
A-Class		516,475			14,322,044
C-Class		569,747			6,582,378
H-Class		14,660,457			45,391,991
Redemption fees collected
A-Class		11,765			39,865
C-Class		3,562			16,020
H-Class		25,235			69,804
Distributions reinvested
A-Class		—			12,778
C-Class		—			5,349
H-Class		—			38,899
Cost of shares redeemed
A-Class		(4,720,775	)		(17,373,154	)
C-Class		(709,192	)		(7,795,286	)
H-Class		(15,880,420	)		(44,736,403	)
Net decrease from capital share transactions		(5,523,146	)		(3,425,715	)
Net increase (decrease) in net assets		(7,969,728	)		1,018,727
Net assets:
Beginning of period		13,390,221			12,371,494
End of period	$	5,420,493		$	13,390,221
Accumulated net investment loss at end of period	$	(190,369	)	$	(100,827	)
Capital share activity:
Shares sold
A-Class		27,944			775,968
C-Class		28,763			349,679
H-Class		708,466			2,286,872
Shares reinvested
A-Class		—			594
C-Class		—			252
H-Class		—			1,804
Shares redeemed
A-Class		(264,978	)		(976,943	)
C-Class		(39,461	)		(398,927	)
H-Class		(824,773	)		(2,284,588	)
Total capital share activity		(364,039	)		(245,289	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    19

  INTERNATIONAL LONG SHORT SELECT FUND

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.

	Period									Period
	Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.49			$13.76			$22.93			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.17	)		.05			(.05	)		.53
Net gain (loss) on securities (realized and unrealized)		(1.67	)		6.60			(8.84	)		(1.98	)
Total from investment operations		(1.84	)		6.65			(8.89	)		(1.45	)
Less distributions:
Distributions from net investment income		—			(.03	)		(.33	)		(.41	)
Distributions from realized gains		—			—			—			(.24	)
Total distributions		—			(.03	)		(.33	)		(.65	)
Redemption fees collected		.08			.11			.05			.03
Net asset value, end of period		$18.73			$20.49			$13.76			$22.93
Total Returnd		(8.59%	)		49.14%			(38.64%	)		(5.93%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,085			$6,043			$6,818			$13,483
Ratios to average net assets:
Net investment income (loss)		(1.79%	)		0.24%			(0.24%	)		3.68%	f
Total expenses		2.48%			1.70%			1.68%			1.74%	f
Operating expensese		1.76%			1.70%			1.68%			1.74%	f
Portfolio turnover rate		331%			430%			278%			160%

	Period									Period
	Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,
C-Class	2010a			2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.11			$13.61			$22.84			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.19	)		(.30	)		(.19	)		.39
Net gain (loss) on securities (realized and unrealized)		(1.65	)		6.73			(8.76	)		(1.96	)
Total from investment operations		(1.84	)		6.43			(8.95	)		(1.57	)
Less distributions:
Distributions from net investment income		—			(.03	)		(.33	)		(.41	)
Distributions from realized gains		—			—			—			(.24	)
Total distributions		—			(.03	)		(.33	)		(.64	)
Redemption fees collected		.05			.10			.05			.06
Net asset value, end of period		$18.32			$20.11			$13.61			$22.84
Total Returnd		(8.90%	)		48.00%			(39.06%	)		(6.29%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,084			$1,405			$1,618			$3,603
Ratios to average net assets:
Net investment income (loss)		(2.01%	)		(1.57%	)		(1.00%	)		2.70%	f
Total expenses		3.22%			2.43%			2.43%			2.49%	f
Operating expensese		2.50%			2.43%			2.43%			2.49%	f
Portfolio turnover rate		331%			430%			278%			160%

20    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  INTERNATIONAL LONG SHORT SELECT FUND

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.

	Period									Period
	Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.50			$13.77			$22.94			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.17	)		(.03	)		(.03	)		.45
Net gain (loss) on securities (realized and unrealized)		(1.67	)		6.68			(8.86	)		(1.95	)
Total from investment operations		(1.84	)		6.65			(8.89	)		(1.50	)
Less distributions:
Distributions from net investment income		—			(.03	)		(.33	)		(.41	)
Distributions from realized gains		—			—			—			(.24	)
Total distributions		—			(.03	)		(.33	)		(.65	)
Redemption fees collected		.08			.11			.05			.09
Net asset value, end of period		$18.74			$20.50			$13.77			$22.94
Total Returnd		(8.59%	)		49.11%			(38.63%	)		(5.89%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,252			$5,942			$3,936			$13,775
Ratios to average net assets:
Net investment income (loss)		(1.74%	)		(0.16%	)		(0.16%	)		3.19%	f
Total expenses		2.47%			1.68%			1.68%			1.75%	f
Operating expensese		1.76%			1.68%			1.68%			1.75%	f
Portfolio turnover rate		331%			430%			278%			160%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations August 31, 2007.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Operating expenses exclude interest and dividend expense from securities sold short.
f	Annualized

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    21

FUND PROFILE (Unaudited)

September 30, 2010

ALTERNATIVE STRATEGIES ALLOCATION FUND

OBJECTIVE: Seeks to deliver a return that has a low correlation to the returns of traditional stock and bond asset classes as well as provide capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	March 7, 2008
C-Class	March 7, 2008
H-Class	March 7, 2008

Ten Largest Holdings (% of Total Net Assets)
RSF — Managed Futures Strategy Fund — Class A	20.3	%
RSF — Equity Market Neutral Fund — Class A	16.7	%
RSF — Long/Short Commodities Strategy Fund — Class A	10.5	%
RSF — Event Driven and Distressed Strategies Fund — Class A	9.9	%
RSF — Long Short Interest Rate Strategy Fund — Class A	9.8	%
RSF — Alternative Strategies Fund — Class A	9.8	%
RSF — Multi-Hedge Strategies Fund — Class A	8.2	%
PowerShares DB G10 Currency Harvest Fund	4.9	%
RSF — Long Short Equity Strategy Fund — Class A	4.9	%
RSF — Real Estate Fund — Class A	3.0	%
Top Ten Total	98.0	%

“Holdings” exclude any temporary cash or derivative investments.

RSF — Rydex Series Funds

22    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 ALTERNATIVE STRATEGIES ALLOCATION FUND

			MARKET
	SHARES		VALUE
CURRENCY EXCHANGE TRADED FUND† - 4.9%
PowerShares DB G10 Currency Harvest Fund		52,580	$	1,221,959
Total Currency Exchange Traded Fund (Cost $1,074,471)				1,221,959
MUTUAL FUNDS†,2 - 94.1%
RSF — Managed Futures Strategy Fund*		205,950		5,037,539
RSF — Equity Market Neutral Fund		184,483		4,134,273
RSF — Long/Short Commodities Strategy Fund*		105,568		2,604,359
RSF — Event Driven and Distressed Strategies Fund*		91,104		2,445,234
RSF — Long Short Interest Rate Strategy Fund*		94,594		2,426,331
RSF — Alternative Strategies Fund*		92,625		2,419,360
RSF — Multi-Hedge Strategies Fund*		97,175		2,046,510
RSF — Long Short Equity Strategy Fund*		45,495		1,212,895
RSF — Real Estate Fund		28,903		748,302
RSF — Commodities Strategy Fund		16,564		252,765
Total Mutual Funds (Cost $23,043,957)				23,327,568
		FACE
		AMOUNT
REPURCHASE AGREEMENT††,1 - 1.1%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10	$	272,163		272,163
Total Repurchase Agreement (Cost $272,163)				272,163
Total Investments - 100.1% (Cost $24,390,591)			$	24,821,690
Liabilities, Less Cash & Other Assets - (0.1)%				(16,820	)
Total Net Assets - 100.0%			$	24,804,870

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	A-Class shares of Affiliated Funds.
	RSF — Rydex Series Funds

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    23

  ALTERNATIVE STRATEGIES ALLOCATION FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	1,221,959
Investments, at value, in Affiliated Funds		23,327,568
Repurchase agreement, at value		272,163
Total investments		24,821,690
Receivables:
Fund shares sold		140
Total assets		24,821,830
Liabilities:
Payable for:
Fund shares redeemed		14,100
Custodian fees		27
Distribution and service fees		2,833
Total liabilities		16,960
Net assets	$	24,804,870
Net assets consist of:
Paid in capital		33,005,618
Undistributed net investment income		170,465
Accumulated net realized loss on sale of investments		(8,802,312	)
Net unrealized appreciation in value of investments		431,099
Net assets		24,804,870
A-Class:
Net assets	$	4,180,776
Capital shares outstanding		213,562
Net asset value per share		$19.58
Maximum offering price per share*		$20.56
C-Class:
Net assets	$	4,518,447
Capital shares outstanding		235,296
Net asset value per share		$19.20
H-Class:
Net assets	$	16,105,647
Capital shares outstanding		822,818
Net asset value per share		$19.57
Investments, at cost	$	24,118,428
Repurchase agreement, at cost		272,163
Total cost	$	24,390,591

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Interest	$	170
Total investment income		170
Expenses:
Distribution and Service Fees:
C-Class		20,947
Miscellaneous		680
Total expenses		21,627
Net investment loss		(21,457	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		(1,025,815	)
Investment in Affiliated Funds		(338,217	)
Net realized loss		(1,364,032	)
Net unrealized appreciation (depreciation) during the period on:
Investment securities		433,626
Net unrealized appreciation		433,626
Net loss		(930,406	)
Net decrease in net assets resulting from operations	$	(951,863	)

*  Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

24    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

1

  ALTERNATIVE STRATEGIES ALLOCATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(21,457	)	$	(45,512	)
Net realized loss during the period on investments		(1,364,032	)		(769,516	)
Net unrealized appreciation during the period on investments		433,626			2,196,621
Net increase (decrease) in net assets resulting from operations		(951,863	)		1,381,593
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares
A-Class		925,958			2,960,895
C-Class		453,436			3,011,663
H-Class		3,609,469			16,931,859
Redemption fees collected
A-Class		54			1,867
C-Class		68			3,336
H-Class		209			9,800
Cost of shares redeemed
A-Class		(1,086,557	)		(4,545,011	)
C-Class		(2,691,355	)		(4,063,013	)
H-Class		(5,979,049	)		(17,262,772	)
Net decrease from capital share transactions		(4,767,767	)		(2,951,376	)
Net decrease in net assets		(5,719,630	)		(1,569,783	)
Net assets:
Beginning of period		30,524,500			32,094,283
End of period	$	24,804,870		$	30,524,500
Undistributed net investment income at end of period	$	170,465		$	191,922
Capital share activity:
Shares sold
A-Class		46,625			147,132
C-Class		23,366			151,348
H-Class		184,816			842,841
Shares redeemed
A-Class		(55,930	)		(225,223	)
C-Class		(139,494	)		(204,224	)
H-Class		(307,569	)		(856,182	)
Total capital share activity		(248,186	)		(144,308	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    25

2

   ALTERNATIVE STRATEGIES ALLOCATION FUND

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.

	Period									Period
	Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.16			$19.33			$24.84			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(—	)d		—	d		.62			—	d
Net gain (loss) on securities (realized and unrealized)		(.58	)		.82			(5.69	)		(.16	)
Total from investment operations		(.58	)		.82			(5.07	)		(.16	)
Less distributions:
Distributions from net investment income		—			—			(.44	)		—
Distributions from realized gains		—			—			(.03	)		—
Total distributions		—			—			(.47	)		—
Redemption fees collected		—	e		.01			.03			—
Net asset value, end of period		$19.58			$20.16			$19.33			$24.84
Total Returnf		(2.88%	)		4.29%			(20.39%	)		(0.64%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,181			$4,492			$5,816			$1,121
Ratios to average net assets:
Net investment income (loss)		(0.00%	)		0.16%			2.82%			0.16%	g,h
Total expensesi		0.00%			0.00%			0.00%			0.00%	g
Portfolio turnover rate		86%			79%			88%			—

	Period									Period
	Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008		b
Per Share Data
Net asset value, beginning of period		$19.85			$19.17			$24.83			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.07	)		(.14	)		.39			(.01	)
Net gain (loss) on securities (realized and unrealized)		(.58	)		.81			(5.60	)		(.16	)
Total from investment operations		(.65	)		.67			(5.21	)		(.17	)
Less distributions:
Distributions from net investment income		—			—			(.44	)		—
Distributions from realized gains		—			—			(.03	)		—
Total distributions		—			—			(.47	)		—
Redemption fees collected		—	e		.01			.02			—
Net asset value, end of period		$19.20			$19.85			$19.17			$24.83
Total Returnf		(3.27%	)		3.55%			(21.00%	)		(0.68%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,518			$6,975			$7,750			$152
Ratios to average net assets:
Net investment income (loss)		(0.75%	)		(0.58%	)		1.77%			(0.56%	)g,h
Total expensesi		0.75%			0.75%			0.75%			0.68%	g
Portfolio turnover rate		86%			79%			88%			—

26    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

  ALTERNATIVE STRATEGIES ALLOCATION FUND

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.

	Period								Period
	Ended			Year Ended		Year Ended			Ended
	September 30,			March 31,		March 31,			March 31,
H-Class	2010		a	2010		2009			2008		b
Per Share Data
Net asset value, beginning of period		$20.15			$19.32		$24.84			$25.00
Income (loss) from investment operations:
Net investment income (loss)c		(—	)d		.01		.56			—	d
Net gain (loss) on securities (realized and unrealized)		(.58	)		.81		(5.63	)		(.16	)
Total from investment operations		(.58	)		.82		(5.07	)		(.16	)
Less distributions:
Distributions from net investment income		—			—		(.44	)		—
Distributions from realized gains		—			—		(.03	)		—
Total distributions		—			—		(.47	)		—
Redemption fees collected		—	e		.01		.02			—
Net asset value, end of period		$19.57			$20.15		$19.32			$24.84
Total Returnf		(2.88%	)		4.30%		(20.43%	)		(0.64%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,106			$19,057		$18,528			$3,893
Ratios to average net assets:
Net investment income (loss)		(0.00%	)		0.19%		2.55%			0.12%	g,h
Total expensesi		0.00%			0.00%		0.00%			0.00%	g
Portfolio turnover rate		86%			79%		88%			—

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover, have been annualized.
b	Since commencement of operations March 7, 2008.
c	Net investment income (loss) was computed using average shares outstanding throughout the period.
d	Net investment income (loss) is less than $0.01 per share.
e	Redemption fees collected are less than $0.01 per share.
f	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
g	Annualized
h	Due to limited length of fund operations, ratios for this period are not indicative of future class performance.
i	Does not include expenses of the underlying funds in which the Fund invests.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    27

FUND PROFILE (Unaudited)

September 30, 2010

GLOBAL 130/30 STRATEGY FUND

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

“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)
Apple, Inc.	4.5	%
Express Scripts, Inc. — Class A	4.0	%
Hitachi Ltd.	3.8	%
Mastercard, Inc. — Class A	3.0	%
Osisko Mining Corp.	2.7	%
Rent-A-Center, Inc. — Class A	2.6	%
Julius Baer Group Ltd.	2.6	%
Fresenius Medical Care AG & Co. KGaA	2.5	%
Compass Group plc	2.3	%
Exxaro Resources Ltd.	2.3	%
Top Ten Total	30.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

28    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 GLOBAL 130/30 STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 100.3%
Information Technology - 17.0%
Apple, Inc.*		1,021	$	289,709
Hitachi Ltd.		55,700		243,523
Mastercard, Inc. — Class A		881		197,344
Software AG		1,187		143,388
Xerox Corp.		13,700		141,795
AOL, Inc.*		1,858		45,985
CoreLogic, Inc.		1,900		36,404
Total Information Technology				1,098,148
Financials - 15.2%
Julius Baer Group Ltd.1		4,641		168,948
BNP Paribas1		2,044		145,389
Standard Chartered plc		4,932		141,556
Sony Financial Holdings, Inc.		40		130,323
JPMorgan Chase & Co.		3,160		120,301
RenaissanceRe Holdings Ltd.		900		53,964
PNC Financial Services Group, Inc.		1,000		51,910
Fubon Financial Holding Company Ltd.		40,000		49,292
PartnerRe Ltd.		600		48,108
Validus Holdings Ltd.		1,500		39,540
Hartford Financial Services Group, Inc.		1,500		34,425
Total Financials				983,756
Industrials - 12.9%
Deutsche Lufthansa AG		7,688		141,349
Marubeni Corp.		24,000		135,689
Amada Company Ltd.		19,000		130,179
JetBlue Airways Corp.*		9,000		60,210
Manitowoc Company, Inc.		4,800		58,128
East Japan Railway Co.		800		48,296
Alaska Air Group, Inc.*		900		45,927
Alliant Techsystems, Inc.*		600		45,240
United Continental Holdings, Inc.1*		1,900		44,897
Central Japan Railway Co.		6		44,128
Asiana Airlines		4,760		39,321
US Airways Group, Inc.*		4,200		38,850
Total Industrials				832,214
Health Care - 11.6%
Express Scripts, Inc. — Class A*		5,257		256,016
Fresenius Medical Care AG & Co. KGaA		2,621		161,899
Endo Pharmaceuticals Holdings, Inc.*		1,700		56,508
Zimmer Holdings, Inc.*		1,000		52,330
CR Bard, Inc.		600		48,858
Cephalon, Inc.*		780		48,703
AstraZeneca plc		943		47,924

			MARKET
	SHARES		VALUE
Humana, Inc.*		900	$	45,216
Kinetic Concepts, Inc.*		900		32,922
Total Health Care				750,376
Consumer Discretionary - 11.1%
Rent-A-Center, Inc.1 — Class A		7,600		170,088
Compass Group plc		18,113		150,953
Kingfisher plc		37,492		138,000
Wynn Macau Ltd.*		63,446		109,738
Gannett Company, Inc.		4,100		50,143
Tractor Supply Co.1		1,050		41,643
Apollo Group, Inc. — Class A*		665		34,148
Pulte Group, Inc.*		2,500		21,900
Total Consumer Discretionary				716,613
Energy - 9.9%
Royal Dutch Shell plc1 — Class A		4,625		139,211
CNOOC Ltd.		71,188		137,992
Forest Oil Corp.*		4,487		133,264
Occidental Petroleum Corp.1		1,530		119,799
Sunoco, Inc.1		1,100		40,150
Stone Energy Corp.*		2,600		38,298
World Fuel Services Corp.1		1,340		34,854
Total Energy				643,568
Materials - 8.7%
Osisko Mining Corp.*		12,300		175,134
Exxaro Resources Ltd.		8,630		149,105
Huntsman Corp.		4,600		53,176
Newmont Mining Co.		800		50,248
Yamana Gold, Inc.		4,400		50,162
Harmony Gold Mining Company Ltd.		4,341		48,589
Nippon Paper Group, Inc.		1,600		40,036
Total Materials				566,450
Telecommunication Services - 6.4%
Deutsche Telekom AG		10,716		146,615
Koninklijke KPN N.V.		7,600		117,557
MetroPCS Communications, Inc.*		10,900		114,014
Taiwan Mobile Company Ltd.		19,000		39,276
Total Telecommunication Services				417,462
Consumer Staples - 5.3%
Marine Harvest ASA		153,772		134,016
Koninklijke Ahold N.V.		9,514		128,263
Archer-Daniels-Midland Co.		1,345		42,933
Empire Company Ltd. — Class A		680		36,389
Total Consumer Staples				341,601
Utilities - 2.2%
UGI Corp.1		5,000		143,050
Total Common Stocks
(Cost $5,427,489)				6,493,238

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    29

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

 GLOBAL 130/30 STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS††,2 - 0.4%
Mizuho Financial Group, Inc.
issued 09/30/10 at 0.20% due 10/01/10		$8,865	$	8,865
HSBC Group
issued 09/30/10 at 0.20% due 10/01/10		8,856		8,856
Morgan Stanley
issued 09/30/10 at 0.19% due 10/01/10		3,659		3,659
Credit Suisse Group
issued 09/30/10 at 0.18% due 10/01/10		935		935
Deutsche Bank
issued 09/30/10 at 0.20% due 10/01/10		915		915
Total Repurchase Agreements
(Cost $23,230)				23,230
Total Investments - 100.7%
(Cost $5,450,719)			$	6,516,468
Liabilities, Less Cash & Other Assets - (0.7)%				(45,690	)
Total Net Assets - 100.0%			$	6,470,778

Country Diversification

The pie chart above reflects percentages of
the market value of Common Stocks.

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	All or a portion of this security is pledged as short security collateral at September 30, 2010.
2	Repurchase Agreements — See Note 6. plc — Public Limited Company

30    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT          See Notes to Financial Statements.

  GLOBAL 130/30 STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	6,493,238
Repurchase agreement, at value		23,230
Total investments		6,516,468
Foreign currency, at value		848,309
Receivables:
Securities sold		145,894
Fund shares sold		4,713
Dividends		31,497
Interest		60
Other assets		1,083
Total assets		7,548,024
Liabilities:
Overdraft due to custodian bank		1,009,022
Payable for:
Fund shares redeemed		48,420
Management fees		6,549
Custodian fees		207
Transfer agent/maintenance fees		1,559
Distribution and service fees		3,844
Portfolio accounting fees		623
Interest		463
Other		6,559
Total liabilities		1,077,246
Net assets	$	6,470,778
Net assets consist of:
Paid in capital		15,078,731
Accumulated net investment loss		(106,735	)
Accumulated net realized loss on sale of investments		(9,585,146	)
Net unrealized appreciation in value of investments		1,083,928
Net assets		6,470,778
A-Class:
Net assets	$	464,143
Capital shares outstanding		50,208
Net asset value per share		$9.24
Maximum offering price per share*		$9.70
C-Class:
Net assets	$	3,762,049
Capital shares outstanding		438,550
Net asset value per share		$8.58
H-CLASS:
Net assets	$	2,244,586
Capital shares outstanding		242,580
Net asset value per share		$9.25
Investments, at cost	$	5,427,489
Repurchase agreement, at cost		23,230
Total cost	$	5,450,719
Foreign Currency, at cost		830,130

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $21,229)	$	151,740
Interest		1,252
Total investment income		152,992
Expenses:
Management fees		61,215
Transfer agent and administrative fees		14,575
Distribution and Service Fees:
A-Class		4,109
C-Class		20,309
H-Class		5,389
Portfolio accounting fees		5,830
Trustees’ fees**		472
Short sales dividend expense		19,057
Prime broker interest expense		52,517
Custody Fees		22,315
Miscellaneous		8,400
Total expenses		214,188
Net investment loss		(61,196	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		543,051
Foreign currency		(70,902	)
Securities sold short		(151,704	)
Net realized gain		320,445
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(1,170,005	)
Securities sold short		637,085
Foreign currency		18,515
Net unrealized depreciation		(514,405	)
Net loss		(193,960	)
Net decrease in net assets resulting from operations	$	(255,156	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    31

1

  GLOBAL 130/30 STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(61,196	)	$	(90,744	)
Net realized gain during the period on investments		320,445			2,117,556
Net unrealized appreciation (depreciation) during the period on investments		(514,405	)		2,208,216
Net increase (decrease) in net assets resulting from operations		(255,156	)		4,235,028
Distributions to shareholders from:
Net investment income
A-Class		—			(2,644	)
C-Class		—			(3,891	)
H-Class		—			(3,311	)
Total distributions to shareholders		—			(9,846	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,434,618			8,877,550
C-Class		209,077			469,690
H-Class		2,441,870			7,059,648
Redemption fees collected
A-Class		66			746
C-Class		75			840
H-Class		88			863
Distributions reinvested
A-Class		—			2,621
C-Class		—			3,483
H-Class		—			3,131
Cost of shares redeemed
A-Class		(4,905,001	)		(6,726,046	)
C-Class		(1,071,476	)		(2,974,681	)
H-Class		(4,947,436	)		(7,298,408	)
Net decrease from capital share transactions		(6,838,119	)		(580,563	)
Net increase (decrease) in net assets		(7,093,275	)		3,644,619
Net assets:
Beginning of period		13,564,053			9,919,434
End of period	$	6,470,778		$	13,564,053
Accumulated net investment loss at end of period	$	(106,735	)	$	(45,539	)
Capital share activity:
Shares sold
A-Class		168,649			1,193,478
C-Class		24,636			58,891
H-Class		280,209			917,327
Shares reinvested
A-Class		—			292
C-Class		—			415
H-Class		—			348
Shares redeemed
A-Class		(560,176	)		(848,000	)
C-Class		(129,835	)		(388,511	)
H-Class		(566,273	)		(909,120	)
Total capital share activity		(782,790	)		25,120

32    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

2

  GLOBAL 130/30 STRATEGY FUND

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.

	Period
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
A-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$9.19			$6.91			$11.79			$17.05			$16.72			$15.01
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.02	)		.12			.10			.05			(.01	)
Net gain (loss) on securities (realized and unrealized)		.09			2.31			(4.98	)		(2.58	)		1.38			2.59
Total from investment operations		.05			2.29			(4.86	)		(2.48	)		1.43			2.58
Less distributions:
Distributions from net investment income		—			(.01	)		(.06	)		(.02	)		—			—
Distributions from realized gains		—			—			—			(2.76	)		(1.10	)		(.87	)
Total distributions		—			(.01	)		(.06	)		(2.78	)		(1.10	)		(.87	)
Redemption fees collected		—	c		—	c		.04			—	c		—	c		—
Net asset value, end of period		$9.24			$9.19			$6.91			$11.79			$17.05			$16.72
Total Returnd		0.87%			33.08%			(40.85%	)		(15.78%	)		8.89%			17.55%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$464			$4,058			$663			$3,361			$5,680			$3,079
Ratios to average net assets:
Net investment income (loss)		(0.89%	)		(0.24%	)		1.17%			0.64%			0.32%			(0.08%	)
Total expenses		3.39%			3.15%			1.12%			1.21%			1.32%			1.66%
Operating expensese		2.15%			2.16%			1.12%			1.21%			1.32%			1.66%
Portfolio turnover rate		170%			432%			254%			149%			138%			168%

	Period
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
C-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$8.55			$6.48			$11.14			$16.39			$16.24			$14.71
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.09	)		.04			(.02	)		(.09	)		(.13	)
Net gain (loss) on securities (realized and unrealized)		.09			2.17			(4.68	)		(2.45	)		1.34			2.53
Total from investment operations		.03			2.08			(4.64	)		(2.47	)		1.25			2.40
Less distributions:
Distributions from net investment income		—			(.01	)		(.06	)		(.02	)		—			—
Distributions from realized gains		—			—			—			(2.76	)		(1.10	)		(.87	)
Total distributions		—			(.01	)		(.06	)		(2.78	)		(1.10	)		(.87	)
Redemption fees collected		—	c		—	c		.04			—	c		—	c		—
Net asset value, end of period		$8.58			$8.55			$6.48			$11.14			$16.39			$16.24
Total Returnd		0.59%			32.04%			(41.26%	)		(16.39%	)		8.03%			16.68%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,762			$4,649			$5,659			$15,906			$30,181			$30,981
Ratios to average net assets:
Net investment income (loss)		(1.42%	)		(1.21%	)		0.42%			(0.13%	)		(0.54%	)		(0.87%	)
Total expenses		4.13%			3.98%			1.86%			1.97%			2.12%			2.40%
Net Expenses		4.13%			3.97%			1.86%			1.97%			2.12%			2.40%
Operating expensese		2.96%			2.96%			1.86%			1.97%			2.12%			2.40%
Portfolio turnover rate		170%			432%			254%			149%			138%			168%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    33

3

  GLOBAL 130/30 STRATEGY FUND

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.

	Period
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			March 31,			March 31,			March 31,			March 31,			March 31,
H-Class	2010		a	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period		$9.19			$6.92			$11.79			$17.04			$16.72			$15.01
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.03	)		.11			.09			.03			(.02	)
Net gain (loss) on securities (realized and unrealized)		.10			2.31			(4.97	)		(2.56	)		1.39			2.60
Total from investment operations		.06			2.28			(4.86	)		(2.47	)		1.42			2.58
Less distributions:
Distributions from net investment income		—			(.01	)		(.06	)		(.02	)		—			—
Distributions from realized gains		—			—			—			(2.76	)		(1.10	)		(.87	)
Total distributions		—			(.01	)		(.06	)		(2.78	)		(1.10	)		(.87	)
Redemption fees collected		—	c		—	c		.05			—	c		—	c		—
Net asset value, end of period		$9.25			$9.19			$6.92			$11.79			$17.04			$16.72
Total Returnd		0.98%			32.89%			(40.77%	)		(15.73%	)		8.83%			17.55%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,245			$4,857			$3,597			$13,192			$41,562			$53,323
Ratios to average net assets:
Net investment income (loss)		(0.82%	)		(0.30%	)		1.12%			0.57%			0.18%			(0.11%	)
Total expenses		3.46%			3.17%			1.11%			1.23%			1.38%			1.64%
Operating expensese		2.18%			2.17%			1.11%			1.23%			1.38%			1.64%
Portfolio turnover rate		170%			432%			254%			149%			138%			168%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) was computed using average shares outstanding throughout the period.
c	Redemption fees collected are less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Operating expenses exclude interest and dividend expense from securities sold short.

34    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

EQUITY MARKET NEUTRAL FUND
(Formerly, Global Market Neutral Fund)

OBJECTIVE: Seeks to provide long-term absolute returns regardless of market conditions, while maintaining a low correlation to and mitigating the risks of the global equity market.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	March 30, 2009
C-Class	March 30, 2009
H-Class	March 30, 2009

Ten Largest Long Holdings (% of Total Net Assets)
Public Power Corp.S.A.	1.8	%
Deluxe Corp.	1.8	%
Hitachi Ltd.	1.8	%
Stone Energy Corp.	1.7	%
Whirlpool Corp.	1.7	%
PDL BioPharma, Inc.	1.7	%
Navistar International Corp.	1.7	%
Sunoco, Inc.	1.6	%
Elpida Memory, Inc.	1.5	%
Oshkosh Corp.	1.5	%
Top Ten Total	16.8	%

“Ten Largest Long Holdings” exclude any temporary cash or derivative investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    35

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  EQUITY MARKET NEUTRAL FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS† - 96.5%
Industrials - 18.3%
Deluxe Corp.1		12,700	$	242,951
Navistar International Corp.1*		5,000		218,200
Oshkosh Corp.1*		7,400		203,500
Marubeni Corp.1		28,000		158,304
Atlas Air Worldwide Holdings, Inc.1*		2,700		135,810
US Airways Group, Inc.1*		13,900		128,575
Hong Leong Asia Ltd.		49,000		123,711
NACCO Industries, Inc.1 — Class A		1,400		122,346
ITOCHU Corp.1		13,000		118,967
SK Holdings Company Ltd.1		1,122		116,593
China COSCO Holdings Company Ltd. — Class H		101,500		114,727
CSR Ltd.		57,854		100,630
Alaska Air Group, Inc.1*		1,900		96,957
Mitsui & Company Ltd.1		5,000		74,385
Seaboard Corp.1		37		65,527
United Continental Holdings, Inc.1*		2,700		63,801
Huber & Suhner AG		971		56,426
Saab AB1 — Class B		3,878		56,218
RR Donnelley & Sons Co.		3,300		55,968
Yangzijiang Shipbuilding Holdings Ltd.		39,000		52,198
JA Solar Holdings Company Ltd. — ADR1 ADR*		3,900		36,387
Air China Ltd. — Class H		26,000		35,922
Continental Airlines, Inc.1 — Class B*		1,400		34,776
Total Industrials				2,412,879
Consumer Discretionary - 17.5%
Whirlpool Corp.1		2,800		226,689
American Greetings Corp.1 — Class A		10,500		195,195
Kesko Oyj1 — Class B		3,874		181,803
ITT Educational Services, Inc.1*		1,900		133,513
Pace plc		40,483		110,978
Corinthian Colleges, Inc.1*		15,000		105,300
Jones Apparel Group, Inc.1		5,300		104,092
Quebecor, Inc.1 — Class B		2,600		87,054
Daiichikosho Company Ltd.1		5,300		82,530
Sumitomo Rubber Industries Ltd.1		8,400		82,003
Cooper Tire & Rubber Co.1		3,700		72,631
Priceline.com, Inc.1*		200		69,668
Dex One Corp.1*		5,400		66,312
TomTom N.V.1*		8,313		57,747
Career Education Corp.1*		2,600		55,822
Bon-Ton Stores, Inc.1		5,400		54,918
Valassis Communications, Inc.1*		1,600		54,224
Apollo Group, Inc.1 — Class A*		1,000		51,350
Plastic Omnium S.A.		952		50,621
Toyo Tire & Rubber Company Ltd.		24,000		50,021
Jarden Corp.1		1,600		49,808

			MARKET
	SHARES		VALUE
Promotora de Informaciones S.A.		21,168	$	47,620
Goodyear Tire & Rubber Co.1*		4,200		45,150
PGM Holdings K. K.1		64		40,783
Hermes International		149		34,028
Dorel Industries, Inc.1 — Class B		1,000		33,424
TRW Automotive Holdings Corp.1*		800		33,248
Dillard’s, Inc.1 — Class A		1,400		33,096
D’ieteren S.A.		59		33,022
Gannett Company, Inc.1		2,700		33,021
Federal-Mogul Corp.1*		1,700		32,147
Total Consumer Discretionary				2,307,818
Energy - 12.8%
Stone Energy Corp.1*		15,400		226,842
Sunoco, Inc.1		5,800		211,700
Transocean Ltd.1*		3,100		199,299
Valero Energy Corp.		10,900		190,859
Exterran Holdings, Inc.1*		6,400		145,344
Idemitsu Kosan Company Ltd.1		1,400		120,069
Chesapeake Energy Corp.1		5,000		113,250
Caltex Australia Ltd.1		8,363		96,896
Murphy Oil Corp.1		1,400		86,688
TGS Nopec Geophysical Company ASA1		5,400		77,641
Cal Dive International, Inc.1*		9,400		51,418
Tesoro Corp.1		3,700		49,432
Nexen, Inc.1		2,400		48,285
Gulfmark Offshore, Inc.1 — Class A*		1,200		36,864
Encana Corp.1		1,200		36,260
Total Energy				1,690,847
Materials - 11.9%
Norddeutsche Affinerie AG1		3,336		158,988
Nufarm Ltd.		41,876		146,082
Newmont Mining Co.1		2,300		144,463
Xstrata plc1		4,850		92,840
Ashland, Inc.1		1,900		92,663
Gold Fields Ltd.1		6,025		91,301
Domtar Corp.1		1,300		83,954
Barrick Gold Corp.1		1,800		83,186
OneSteel Ltd.		29,097		82,383
West Fraser Timber Company Ltd.1		2,100		77,150
Harmony Gold Mining Company Ltd.		5,953		66,632
Boliden AB1		4,239		64,219
Metalurgica Gerdau S.A. — Class A		3,900		62,819
Nippon Paper Group, Inc.		2,300		57,552
Centerra Gold, Inc.1		3,500		56,468
Tokuyama Corp.1		8,000		40,630
Rhodia S.A.		1,588		38,052
Ferrexpo plc		7,571		36,669

36    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

 EQUITY MARKET NEUTRAL FUND

			Market
	Shares		Value
OSAKA Titanium Technologies Co.		700	$	32,784
International Paper Co.1		1,500		32,625
Mitsui Chemicals, Inc.		12,000		32,341
Total Materials				1,573,801
Health Care - 11.4%
PDL BioPharma, Inc.1		42,400		223,024
Humana, Inc.1*		3,900		195,936
Community Health Systems, Inc.1*		5,700		176,529
Amedisys, Inc.1*		6,000		142,800
Kindred Healthcare, Inc.1*		10,900		141,918
Draegerwerk AG & Company KGaA		1,255		114,660
Miraca Holdings, Inc.1		3,000		106,187
Kinetic Concepts, Inc.*		2,700		98,766
AGFA-Gevaert N.V.1		11,286		83,246
Toho Holdings Company Ltd.		5,000		70,492
KYORIN Holdings, Inc.1		4,000		62,143
Smith & Nephew plc*		6,352		57,927
Medipal Holdings Corp.		2,600		33,043
Total Health Care				1,506,671
Information Technology - 11.2%
Hitachi Ltd.1		54,000		236,090
Elpida Memory, Inc.1*		17,900		205,833
UBISOFT Entertainment1*		11,767		131,010
Amkor Technology, Inc.1*		17,900		117,603
Kakaku.com, Inc.1		15		86,872
Micron Technology, Inc.1*		10,800		77,868
Net 1 UEPS Technologies, Inc.1*		6,700		77,452
InterDigital, Inc.1*		2,200		65,142
Konami Corp.		2,800		49,437
Micro Focus International plc		8,110		48,631
Symantec Corp.1*		3,200		48,544
OpenTable, Inc.1*		700		47,656
NTT Data Corp.1		13		41,094
Trina Solar Ltd.1 ADR*		1,300		39,234
Ulvac, Inc.		2,000		35,599
LG Display Company Ltd.1 ADR		2,000		34,880
MicroStrategy, Inc.1 — Class A*		400		34,644
Research In Motion Ltd.1*		700		34,083
Seagate Technology plc1*		2,800		32,984
MercadoLibre, Inc.1*		400		28,872
Total Information Technology				1,473,528
Financials - 5.8%
Catlin Group Ltd.1		30,851		164,978
Morgan Stanley1		3,300		81,444
PHH Corp.1*		3,400		71,604
Commerzbank AG1		8,563		70,984
Protective Life Corp.1		3,200		69,632
SNS REAAL N.V.1		16,314		66,840
Assured Guaranty Ltd.1		3,200		54,752
Altisource Portfolio Solutions S.A.1*		1,633		50,851
Greentown China Holdings Ltd.		37,000		40,248
American International Group, Inc.1*		900		35,190

			Market
	Shares		Value
Lancashire Holdings Ltd.		3,647	$	31,798
PNC Financial Services Group, Inc.1		600		31,146
Total Financials				769,467
Consumer Staples - 3.6%
Morinaga Milk Industry Company Ltd.		27,000		115,781
Cermaq ASA1		8,200		90,987
Megmilk Snow Brand Company Ltd.1		3,700		69,449
Shenguan Holdings Group Ltd.		58,000		68,025
Nisshin Oillio Group Ltd.1		10,000		45,637
Gruma SAB de CV — Class B*		26,200		37,406
Pilgrim’s Pride Corp.1*		5,700		32,034
Leroy Seafood Group ASA1		811		19,170
Total Consumer Staples				478,489
Utilities - 2.8%
Public Power Corp.S.A.1		15,616		243,358
Constellation Energy Group, Inc.1		4,000		128,960
Total Utilities				372,318
Telecommunication Services - 1.2%
LG Uplus Corp.1		11,630		75,164
Nippon Telegraph & Telephone Corp.1		1,100		48,026
Telecomunicacoes de Sao Paulo S.A.1 ADR		1,600		39,088
Total Telecommunication Services				162,278
Total Common Stocks (Cost $12,461,495)				12,748,096
Total Long Securities - 96.5% (Cost $12,461,495)				12,748,096
COMMON STOCKS SOLD SHORT † - (92.8)%
Telecommunication Services - (1.5)%
TPG Telecom Ltd.		20,927	$	(30,738	)
Clearwire Corp.*		21,200		(171,508	)
Total Telecommunication Services				(202,246	)
Consumer Staples - (4.0)%
Tootsie Roll Industries, Inc.		2,932		(72,948	)
Illovo Sugar Ltd.		20,584		(74,436	)
Green Mountain Coffee Roasters, Inc.*		2,800		(87,332	)
Yakult Honsha Company Ltd.		4,200		(129,695	)
Oriflame Cosmetics S.A.		2,312		(148,576	)
Total Consumer Staples				(512,987	)
Financials - (6.3)%
China Life Insurance Company Ltd.		8,000		(31,602	)
Macquarie Group Ltd.		906		(31,754	)
China Everbright Ltd.		14,000		(33,345	)
Hong Kong Exchanges and Clearing Ltd.		1,700		(33,479	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    37

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2010

 EQUITY MARKET NEUTRAL FUND

			Market
	Shares		Value
Nomura Holdings, Inc.		7,800	$	(37,746	)
Poly Hong Kong Investments Ltd.		41,000		(43,965	)
Promise Company Ltd.		6,050		(45,365	)
Zions Bancorporation		2,400		(51,264	)
MBIA, Inc.*		5,300		(53,265	)
Norwegian Property ASA		30,955		(53,430	)
Forestar Group, Inc.*		3,800		(64,790	)
Greenhill & Company, Inc.		1,200		(95,184	)
EFG International AG		11,207		(129,452	)
St. Joe Co.*		5,400		(134,298	)
Total Financials				(838,939	)
Information Technology - (10.6)%
Aruba Networks, Inc.*		1,500		(32,010	)
Mitsumi Electric Company Ltd.		2,600		(39,863	)
Cavium Networks, Inc.*		1,500		(43,140	)
Keyence Corp.		200		(43,505	)
Red Hat, Inc.*		1,300		(53,300	)
Advantest Corp.		2,700		(53,719	)
SolarWinds, Inc.*		3,200		(55,232	)
Yaskawa Electric Corp.		8,000		(64,491	)
Cree, Inc.*		1,200		(65,148	)
Intermec, Inc.*		5,800		(71,108	)
TiVo, Inc.*		10,300		(93,318	)
Rambus, Inc.*		4,500		(93,780	)
Ciena Corp.*		6,500		(101,205	)
Concur Technologies, Inc.*		2,200		(108,768	)
NetSuite, Inc.*		4,700		(110,779	)
Imagination Technologies Group plc*		19,866		(119,499	)
Formfactor, Inc.*		14,900		(128,140	)
SuccessFactors, Inc.*		5,600		(140,616	)
Total Information Technology				(1,417,621	)
Health Care - (11.0)%
Savient Pharmaceuticals, Inc.*		1,400		(32,018	)
Cochlear Ltd.		679		(46,093	)
Straumann Holding AG		225		(50,216	)
Sinopharm Group Co.		13,200		(54,526	)
Emeritus Corp.*		3,200		(54,592	)
Intuitive Surgical, Inc.*		200		(56,748	)
Shandong Weigao Group Medical Polymer Company Ltd.		20,000		(56,967	)
Quality Systems, Inc.		900		(59,679	)
Myriad Genetics, Inc.*		4,400		(72,204	)
Illumina, Inc.*		1,800		(88,560	)
Salix Pharmaceuticals Ltd.*		2,300		(91,356	)
Allos Therapeutics, Inc.*		22,700		(107,144	)
Pharmasset, Inc.*		3,900		(115,050	)
Nichi-iko Pharmaceutical Company Ltd.		3,800		(131,909	)
Volcano Corp.*		5,300		(137,694	)
Auxilium Pharmaceuticals, Inc.*		6,000		(148,680	)
athenahealth, Inc.*		5,200		(171,704	)
Total Health Care				(1,475,140	)

			Market
	Shares		Value
Energy - (12.1)%
Dart Energy Ltd.*		8,144	$	(9,286	)
InterOil Corp.*		500		(34,220	)
Saras SpA		24,468		(48,239	)
Paladin Energy Ltd.*		14,970		(51,932	)
Paramount Resources Ltd.*		2,900		(57,386	)
Comstock Resources, Inc.*		2,700		(60,723	)
McMoRan Exploration Co.*		3,900		(67,119	)
Massey Energy Co.		2,200		(68,244	)
BPZ Resources, Inc.*		18,000		(68,940	)
Sevan Marine ASA*		70,000		(71,661	)
Atlas Energy, Inc.*		2,600		(74,464	)
Patriot Coal Corp.*		7,200		(82,152	)
Range Resources Corp.		2,200		(83,886	)
Legacy Oil + Gas, Inc.*		7,700		(84,416	)
EQT Corp.		2,400		(86,544	)
Goodrich Petroleum Corp.*		6,000		(87,420	)
Niko Resources Ltd.		900		(88,574	)
Overseas Shipholding Group, Inc.		4,100		(140,712	)
Heritage Oil plc		33,827		(157,723	)
Bourbon S.A.		3,993		(163,025	)
Total Energy				(1,586,666	)
Materials - (13.2)%
Seabridge Gold, Inc.*		1,200		(34,102	)
Sumitomo Metal Industries Ltd.		19,000		(48,021	)
Alumina Ltd.		29,151		(50,986	)
African Minerals Ltd.*		10,128		(62,688	)
Northam Platinum Ltd.		10,575		(69,791	)
Monsanto Co.		1,500		(71,895	)
Mirabela Nickel Ltd.*		46,181		(76,310	)
Sociedad Quimica y Minera de Chile S.A. ADR		1,600		(77,184	)
Silver Standard Resources, Inc.*		4,500		(89,659	)
Mosaic Co.		1,600		(94,016	)
James Hardie Industries SE		17,490		(94,646	)
Outokumpu Oyj		4,914		(97,617	)
Ivanhoe Mines Ltd.*		4,400		(103,233	)
Novagold Resources, Inc.*		12,200		(105,886	)
Fibria Celulose S.A. ADR*		6,600		(114,114	)
Shin-Etsu Chemical Company Ltd.		2,500		(121,728	)
Vulcan Materials Co.		3,300		(121,836	)
Mitsubishi Chemical Holdings Corp.		28,000		(142,205	)
Texas Industries, Inc.		5,100		(160,752	)
Total Materials				(1,736,669	)
Industrials - (13.9)%
Regus plc		26,520		(33,330	)
Vestas Wind Systems A*		891		(33,576	)
Granite Construction, Inc.		1,500		(34,110	)
Lindab International AB		2,501		(36,237	)
Groupe Eurotunnel S.A.		5,108		(43,437	)
HEICO Corp.		1,100		(50,204	)
Trevi Finanziaria SpA		3,638		(51,536	)
Resources Connection, Inc.		3,800		(52,288	)

38    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2010

 EQUITY MARKET NEUTRAL FUND

			Market
	Shares		Value
Ener1, Inc.*		17,200	$	(63,296	)
USG Corp.*		6,700		(88,373	)
NKT Holding A		1,922		(95,072	)
Fastenal Co.		2,000		(106,380	)
NGK Insulators Ltd.		7,000		(116,296	)
Mori Seiki Company Ltd.		13,900		(129,368	)
Japan Steel Works Ltd.		14,000		(131,808	)
Hitachi Construction Machinery Company Ltd.		6,200		(134,048	)
Fanuc Ltd.		1,100		(140,061	)
Wienerberger AG		9,048		(148,836	)
Terex Corp.*		6,800		(155,856	)
OKUMA Corp.		29,000		(160,136	)
Total Industrials				(1,804,248	)
Consumer Discretionary - (20.2)%
Capella Education Co.*		400		(31,048	)
ArvinMeritor, Inc.*		2,000		(31,080	)
Toho Company Ltd.		2,000		(32,173	)
J Crew Group, Inc.*		1,000		(33,620	)
Beneteau S.A.		2,108		(37,708	)
KB Home		3,500		(39,655	)
JD Group Ltd.		6,356		(43,543	)
Start Today Company Ltd.		16		(44,636	)
Buffalo Wild Wings, Inc.*		1,000		(47,890	)
Collective Brands, Inc.*		3,200		(51,648	)
Asatsu-DK, Inc.		2,500		(53,992	)
Sol Melia S.A.		6,342		(56,896	)
Esprit Holdings Ltd.		10,600		(57,516	)
WMS Industries, Inc.*		1,600		(60,912	)
Unibet Group plc		3,575		(65,511	)
Gaylord Entertainment Co.*		2,200		(67,100	)
Urban Outfitters, Inc.*		2,200		(69,168	)

			Market
	Shares		Value
Aristocrat Leisure Ltd.		21,913	$	(74,748	)
Ctrip.com International Ltd. ADR*		1,700		(81,175	)
Vail Resorts, Inc.*		2,200		(82,544	)
Carphone Warehouse Group plc*		20,442		(87,590	)
Orient-Express Hotels Ltd.*		8,100		(90,315	)
Barratt Developments plc		59,996		(93,168	)
bwin Interactive Entertainment AG		1,991		(103,276	)
Sky Deutschland AG*		76,408		(106,781	)
Rieter Holding AG		375		(107,718	)
Geox SpA		19,325		(109,542	)
MDC Holdings, Inc.		3,900		(113,217	)
Liberty Media Corp.- Capital*		2,300		(119,738	)
Mitsubishi Motors Corp.*		95,000		(124,034	)
Domino’s Pizza UK & IRL plc		18,062		(133,248	)
MGM Resorts International*		12,400		(139,872	)
Virgin Media, Inc.		6,200		(142,724	)
Tokyo Broadcasting System Holdings, Inc.		11,500		(147,943	)
Total Consumer Discretionary				(2,681,729	)
Total Common Stocks Sold Short
(Proceeds $12,069,302)			$	(12,256,245	)
RIGHT SOLD SHORT†† - 0.0%
Sky Deutschland AG*		76,408	$	(104	)
Total Right Sold Short
(Proceeds $0)			$	(104	)
Cash & Other Assets,
Less Liabilities - 96.3%				12,716,411
Total Net Assets - 100.0%			$	13,208,158

Country Diversification

The pie chart above reflects percentages of
the market value of Long Stocks.

Country Diversification

The pie chart above reflects percentages of
the market value of Short Stocks.

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	All or a portion of this security is pledged as short security collateral at September 30, 2010.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    39

  EQUITY MARKET NEUTRAL FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	12,748,096
Total investments		12,748,096
Cash		13,571,732
Receivables:
Securities sold		3,004,747
Fund shares sold		94,043
Dividends		50,160
Interest		267
Forward exchange		4,063,054
Other assets		3,633
Total assets		33,535,732
Liabilities:
Foreign currency, at value		1,123,695
Securities sold short, at value		12,256,349
Payable for:
Securities purchased		2,788,695
Fund shares redeemed		40,748
Management fees		13,586
Custodian fees		8,204
Transfer agent/maintenance fees		2,830
Distribution and service fees		3,301
Portfolio accounting fees		1,132
Interest		14,423
Forward exchange		4,065,823
Other		8,788
Total liabilities		20,327,574
Net Assets	$	13,208,158
Net Assets Consist Of:
Paid in capital		15,040,060
Accumulated net investment loss		(355,447	)
Accumulated net realized loss on sale of
investments		(1,563,435	)
Net unrealized appreciation in value of investments		86,980
Net assets		13,208,158
A-Class:
Net assets	$	8,072,496
Capital shares outstanding		360,197
Net asset value per share		$22.41
Maximum offering price per share*		$23.53
C-class:
Net assets	$	877,923
Capital shares outstanding		39,664
Net asset value per share		$22.13
H-class:
Net assets	$	4,248,003
Capital shares outstanding		189,679
Net asset value per share		$22.40
Institutional Class:
Net assets	$	9,736
Capital shares outstanding		434
Net asset value per share		$22.43
Investments, at cost	$	12,461,495
Total cost	$	12,461,495
Securities sold short, proceeds		12,069,302
Foreign currency sold short, proceeds		1,111,121

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends (net of foreign withholding tax of $10,579)	$	155,552
Interest		953
Total investment income		156,505
Expenses:
Management fees		94,103
Transfer agent and administrative fees		19,605
Distribution and Service Fees:
A-Class		12,998
C-Class		3,699
H-Class		5,671
Portfolio accounting fees		7,842
Trustees’ fees**		588
Short sales dividend expense		104,741
Prime broker interest expense		140,248
Custody Fees		26,376
Miscellaneous		11,239
Total expenses		427,110
Net investment loss		(270,605	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		2,150,434
Foreign currency		(78,708	)
Securities sold short		(2,278,536	)
Net realized loss		(206,810	)
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		(2,299,156	)
Securities sold short		2,367,472
Foreign currency		(12,506	)
Net unrealized appreciation		55,810
Net loss		(151,000	)
Net decrease in net assets resulting from operations	$	(421,605	)

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

40    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  EQUITY MARKET NEUTRAL FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(270,605	)	$	(593,679	)
Net realized loss during the period on investments		(206,810	)		(864,564	)
Net unrealized appreciation during the period on investments		55,810			63,256
Net decrease in net assets resulting from operations		(421,605	)		(1,394,987	)
Distributions to shareholders from:
Net investment income
A-Class		—			(65,915	)
C-Class		—			(2,923	)
H-Class		—			(22,855	)
Institutional Class		—			—
Return of Capital
A-Class		—			(25,544	)
C-Class		—			(1,133	)
H-Class		—			(8,857	)
Institutional Class		—			—
Total distributions to shareholders		—			(127,227	)
Capital share transactions:
Proceeds from sale of shares
A-Class		3,335,038			11,062,126
C-Class		433,695			846,753
H-Class		4,772,088			7,180,728
Institutional Class*		10,000			—
Redemption fees collected
A-Class		156			439
C-Class		13			10
H-Class		71			153
Institutional Class*		0			0
Distributions reinvested
A-Class		—			91,459
C-Class		—			3,816
H-Class		—			30,124
Institutional Class*		—			—
Cost of shares redeemed
A-Class		(6,940,942	)		(9,190,187	)
C-Class		(224,352	)		(108,764	)
H-Class		(5,318,425	)		(5,606,218	)
Institutional Class*		—			—
Net increase (decrease) from capital share transactions		(3,932,658	)		4,310,439
Net increase (decrease) in net assets		(4,354,263	)		2,788,225
Net assets:
Beginning of period		17,562,421			14,774,196
End of period	$	13,208,158		$	17,562,421
Accumulated net investment loss at end of period	$	(355,447	)	$	(84,842	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    41

  EQUITY MARKET NEUTRAL FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Capital Share Activity:
Shares sold
A-Class		142,667			452,824
C-Class		18,883			34,948
H-Class		204,210			294,717
Institutional Class*		434			—
Shares reinvested
A-Class		—			3,840
C-Class		—			161
H-Class		—			1,265
Institutional Class*		—			—
Shares redeemed
A-Class		(300,623	)		(380,418	)
C-Class		(9,833	)		—
H-Class		(230,182	)		(289	)
Institutional Class*		—			—
Total capital share activity		174,444			407,048

* Since the commencement of operations: May 3, 2010.

42    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  EQUITY MARKET NEUTRAL FUND

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.

	Period						Period
	Ended			Year Ended			Ended
	September 30,			March 31,			March 31,
A-Class	2010		b	2010			2009		c
Per Share Data
Net asset value, beginning of period		$22.98			$24.94			$25.00
Income (loss) from investment operations:
Net investment income (loss)d		(.41	)		(.77	)		—	e
Net loss on securities (realized and unrealized)		(.16	)		(1.04	)		(.06	)
Total from investment operations		(.57	)		(1.81	)		(.06	)
Less distributions:
Distributions from realized gains		—			(.11	)		—
Return of capital		—			(.04	)		—
Total distributions		—			(.15	)		—
Redemption fees collected		—	g		—	g		—
Net asset value, end of period		$22.41			$22.98			$24.94
Total Returnf		(2.23%	)		(7.27%	)		(0.24%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,072			$11,909			$11,023
Ratios to average net assets:
Net investment loss		(4.26%	)		(3.19%	)		(1.86%	)i,j
Total expenses		5.41%			4.87%			2.00%	i,j
Operating expensesh		2.29%			2.26%			2.00%	i,j
Portfolio turnover rate		546%			287%			91%

	Period						Period
	Ended			Year Ended			Ended
	September 30,			March 31,			March 31,
C-Class	2010		b	2010			2009		c
Per Share Data
Net asset value, beginning of period		$22.79			$24.95			$25.00
Income (loss) from investment operations:
Net investment income (loss)d		(.45	)		(.97	)		—	e
Net loss on securities (realized and unrealized)		(.21	)		(1.04	)		(.05	)
Total from investment operations		(.66	)		(2.01	)		(.05	)
Less distributions:
Distributions from realized gains		—			(.11	)		—
Return of capital		—			(.04	)		—
Total distributions		—			(.15	)		—
Redemption fees collected		—	g		—	g		—
Net asset value, end of period		$22.13			$22.79			$24.95
Total Returnf		(2.64%	)		(8.07%	)		(0.20%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$878			$698		$	—	a
Ratios to average net assets:
Net investment income (loss)		(4.75%	)		(4.14%	)		0.14%	i,j
Total expenses		6.16%			5.99%			1.75%	i,j
Operating expensesh		3.04%			2.91%			1.75%	i,j
Portfolio turnover rate		546%			287%			91%

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    43

  EQUITY MARKET NEUTRAL FUND

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.

	Period Ended			Year Ended			Period Ended
	September 30,			March 31,			March 31,
H-Class	2010		b	2010			2009		c
Per Share Data
Net asset value, beginning of period		$22.98			$24.94			$25.00
Income (loss) from investment operations:
Net investment income (loss)d		(.38	)		(.76	)		—	e
Net loss on securities (realized and unrealized)		(.20	)		(1.05	)		(.06	)
Total from investment operations		(.58	)		(1.81	)		(.06	)
Less distributions:
Distributions from realized gains		—			(.11	)		—
Return of capital		—			(.04	)		—
Total distributions		—			(.15	)		—
Redemption fees collected		—	g		—	g		—
Net asset value, end of period		$22.40			$22.98			$24.94
Total Returnf		(2.27%	)		(7.27%	)		(0.24%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,248			$4,955			$3,751
Ratios to average net assets:
Net investment loss		(3.92%	)		(3.16%	)		(1.86%	)i,j
Total expenses		5.41%			4.88%			2.00%	i,j
Operating expensesh		2.29%			2.00%			2.00%	i,j
Portfolio turnover rate		546%			287%			91%

	Period Ended
	September 30,
Institutional Class	2010		b,c
Per Share Data
Net asset value, beginning of period		$25.00
Income (loss) from investment operations:
Net investment lossd		(.31	)
Net loss on securities (realized and unrealized)		(2.26	)
Total from investment operations		(2.57	)
Redemption fees collected		—	g
Net asset value, end of period		$22.43
Total Returnf		(2.65%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10
Ratios to average net assets:
Net investment loss		(3.16%	)
Total expenses		5.59%
Operating expensesh		2.06%
Portfolio turnover rate		546%

a	Less than $1,000 in Net Assets.
b	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Since commencement of operations: March 30, 2009 — Equity Market Neutral Fund A-Class, C-Class and H-Class. May 3, 2010 — Institutional Class.
d	Net investment income (loss) was computed using average shares outstanding throughout the period.
e	Net investment income is less than $0.01 per share.
f	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
g	Redemption fees collected are less than $.01 per share.
h	Operating expenses exclude dividends and interest expense.
i	Annualized.
j	Due to limited length of fund operations, ratios for this period are not indicative of future class performance.

44    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

1

FUND PROFILE (Unaudited)

September 30, 2010

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

OBJECTIVE: Seeks to provide investment results that correspond to the performance of a specific benchmark that seeks to track the universe of event driven hedge funds (i.e., funds that seek to profit from the potential mispricings of securities in connection with specific corporate or market events). The Fund’s current benchmark is the Credit Suisse Event Driven Liquid Index (the “Underlying Index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2010
C-Class	June 30, 2010
H-Class	June 30, 2010

The Fund invests principally in derivative investments such as index swap agreements.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    45

2

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	FACE		MARKET
	SHARES		VALUE
FEDERAL AGENCY DISCOUNT NOTES†† – 52.9%
Freddie Mac1 0.35% due 06/21/11	$	3,000,000	$	2,995,617
Farmer Mac2 0.36% due 05/31/11		2,000,000		1,997,446
Fannie Mae1 0.30% due 03/01/11		1,000,000		999,287
Total Federal Agency Discount Notes (Cost $5,986,230)				5,992,350
REPURCHASE AGREEMENTS††,3 - 46.5%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/108		2,077,903		2,077,903
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		1,270,767		1,270,767
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		1,269,352		1,269,352
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		524,525		524,525
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		131,131		131,131
Total Repurchase Agreements (Cost $5,273,678)				5,273,678
Total Investments - 99.4% (Cost $11,259,908)			$	11,266,028
Cash & Other Assets, Less Liabilities - 0.6%				67,059
Total Net Assets - 100.0%			$	11,333,087

			UNREALIZED
	UNITS		GAIN
EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital LLC Russell 2000 October 2010 Index Swap, Terminating 10/29/105 (Notional Market Value
$1,727,544)		2,555		20,990
Credit Suisse Capital LLC October 2010 Credit Suisse Arbitrage Liquid Index Swap, Terminating 10/29/106 (Notional Market Value
$4,223,651)		3,924		12,993
Credit Suisse Capital LLC October 2010 Leveraged Equity Index (Custom Credit Suisse Index) Swap, Terminating 10/29/107 (Notional Market Value
$464,192)		323		1,993
(Total Notional Market Value $6,415,387)			$	35,976
CORPORATE BOND INDEX SWAP AGREEMENT††
Credit Suisse Capital LLC October 2010 ishares iBoxx High Yield Corporate Bond Fund Index Terminating 10/29/104 (Notional Market Value
$7,187,333)		80,135	$	64,342

††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 6.
4	Total Return based on ishares iBoxx High Yield Corporate Bond Fund Index +/– financing at a variable rate.
5	Total Return based on Russell 2000 Index +/– financing at a variable rate.
6	Total Return based on Credit Suisse Merger Arbitrage Liquid Index +/– financing at a variable rate.
7	Total Return based on Leverage Equity Index (Custom Credit Suisse Index) +/– financing at a variable rate.
8	All or a portion of this security is pledged as swap collateral at September 30, 2010.

46    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

3

  EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	5,992,350
Repurchase agreement, at value		5,273,678
Total investments		11,266,028
Unrealized appreciation on swap agreements		100,318
Receivables:
Fund shares sold		24,415
Interest		28
Other assets		1,037
Total assets		11,391,826
Liabilities:
Payable for:
Fund shares redeemed		31,403
Management fees		8,227
Custodian fees		302
Transfer agent/maintenance fees		2,285
Distribution and service fees		2,491
Portfolio accounting fees		914
Licensing fees		9,647
Other		3,470
Total liabilities		58,739
Net assets	$	11,333,087
Net assets consist of:
Paid in capital		10,561,313
Accumulated net investment loss		(45,460	)
Undistributed net realized gain on sale of investments		710,796
Net unrealized appreciation in value of investments		106,438
Net assets		11,333,087
A-Class:
Net assets	$	8,519,087
Capital shares outstanding		317,428
Net asset value per share		$26.84
Maximum offering price per share*		$28.18
C-Class:
Net assets	$	336,351
Capital shares outstanding		12,571
Net asset value per share		$26.76
H-Class:
Net assets	$	2,466,907
Capital shares outstanding		91,921
Net asset value per share		$26.84
Institutional Class:
Net assets	$	10,742
Capital shares outstanding		400
Net asset value per share		$26.85
Investments, at cost	$	5,986,230
Repurchase agreement, at cost		5,273,678
Total cost	$	11,259,908

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010^†

Investment Income:
Interest	$	7,188
Total investment income		7,188
Expenses:
Management fees		24,806
Transfer agent and administrative fees		6,890
Distribution and Service Fees:
A-Class		5,574
C-Class		534
H-Class		1,176
Portfolio accounting fees		2,756
Trustees’ fees**		24
Licensing fees		9,647
Miscellaneous		4,356
Total expenses		55,763
Less expenses waived by Advisor		(3,115	)
Net expenses		52,648
Net investment loss		(45,460	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Swap Agreements		710,796
Net realized gain		710,796
Net unrealized appreciation (depreciation) during the period on:
Investment securities		6,120
Swap Agreements		100,318
Net unrealized appreciation		106,438
Net realized and unrealized gain		817,234
Net increase in net assets resulting from operations	$	771,774

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
†	Since commencement of operations: June 30, 2010.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    47

  EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,
	2010		*
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(45,460	)
Net realized gain during the period on investments		710,796
Net unrealized appreciation during the period on investments		106,438
Net increase in net assets resulting from operations		771,774
Distributions to shareholders		—
Capital share transactions:
Proceeds from sale of shares
A-Class		11,380,011
C-Class		371,537
H-Class		2,930,803
Institutional Class		10,000
Redemption fees collected
A-Class		144
C-Class		0
H-Class		26
Institutional Class		0
Cost of shares redeemed
A-Class		(3,493,535	)
C-Class		(43,841	)
H-Class		(593,832	)
Institutional Class		—
Net increase from capital share transactions		10,561,313
Net increase in net assets		11,333,087
Net assets:
Beginning of period		—
End of period	$	11,333,087
Accumulated net investment loss at end of period	$	(45,460	)
Capital share activity:
Shares sold
A-Class		451,394
C-Class		14,253
H-Class		115,137
Institutional Class		400
Shares redeemed
A-Class		(133,966	)
C-Class		(1,682	)
H-Class		(23,216	)
Institutional Class		—
Total capital share activity		422,320

* Since the commencement of operations: June 30, 2010.

48    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

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.

	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	A-Class			C-Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.11	)		(.15	)
Net gain on securities (realized and unrealized)		1.95			1.91
Total from investment operations		1.84			1.76
Redemption fees collected		—	f		—	f
Net asset value, end of period		$26.84			$26.76
Total Returnd		7.36%			7.04%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,519			$336
Ratios to average net assets:
Net investment loss		(1.64%	)		(2.38%	)
Total expenses		2.01%			2.76%
Net expensese		1.90%			2.65%
Portfolio turnover rate		—			—
	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	H-Class			Institutional Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.11	)		(.09	)
Net gain on securities (realized and unrealized)		1.95			1.94
Total from investment operations		1.84			1.85
Redemption fees collected		—	f		—	f
Net asset value, end of period		$26.84			$26.85
Total Returnd		7.36%			7.40%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,467			$11
Ratios to average net assets:
Net investment loss		(1.63%	)		(1.38%	)
Total expenses		2.01%			1.76%
Net expensese		1.90%			1.65%
Portfolio turnover rate		—			—

a	Since commencement of operations June 30, 2010.
b	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment loss was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after voluntary expense waivers.
f	Redemption fees collected are less than $.01.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    49

FUND PROFILE (Unaudited)

September 30, 2010

ALTERNATIVE STRATEGIES FUND

OBJECTIVE: Seeks to provide investment results that correspond to the performance of a specific benchmark that seeks to track the performance of a broad range of investable hedge fund alternatives. The Fund’s current benchmark is the Merrill Lynch Factor Model (the “Underlying Benchmark”).

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2010
C-Class	June 30, 2010
H-Class	June 30, 2010

The Fund invests principally in derivative investments such as futures contracts.

50    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 ALTERNATIVE STRATEGIES FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES†† - 67.4%
Freddie Mac1 0.32% due 06/21/11		2,000,000	$	1,997,078
Farmer Mac2 0.36% due 05/31/11		1,000,000		998,723
Total Federal Agency Discount Notes
(Cost $2,992,831)				2,995,801
REPURCHASE AGREEMENTS††,3 - 26.5%
Mizuho Financial Group, Inc.
issued 09/30/10 at 0.20%
due 10/01/10		449,731		449,731
HSBC Group
issued 09/30/10 at 0.20%
due 10/01/10		449,230		449,230
Morgan Stanley
issued 09/30/10 at 0.19%
due 10/01/10		185,632		185,632
Credit Suisse Group
issued 09/30/10 at 0.18%
due 10/01/10		47,427		47,427
Deutsche Bank
issued 09/30/10 at 0.20%
due 10/01/10		46,408		46,408
Total Repurchase Agreements (Cost $1,178,428)				1,178,428
Total Investments - 93.9% (Cost $4,171,259)			$	4,174,229
Cash & Other Assets, Less Liabilities - 6.1%				272,853
Total Net Assets - 100.0%			$	4,447,082

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED†
December 2010 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,187,010)		22	$	88,631
December 2010 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $568,000)		10		24,837
December 2010 MSCI EAFE Index Mini Futures (Aggregate Market Value of Contracts $388,550)		5		21,394
(Total Aggregate Market Value of Contracts $2,143,560)			$	134,862
FUTURES CONTRACTS SOLD SHORT†
December 2010 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $470,890)		7		(31,476	)
December 2010 MSCI Index Mini Futures Contracts (Aggregate Market Value of Contracts $851,562)		5		(46,888	)
(Total Aggregate Market Value of Contracts $1,322,452)			$	(78,364	)

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 6.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    51

  ALTERNATIVE STRATEGIES FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	2,995,801
Repurchase agreement, at value		1,178,428
Total investments		4,174,229
Segregated cash with broker		296,500
Receivables:
Fund shares sold		1
Interest		6
Other assets		616
Total assets		4,471,352
Liabilities:
Payable for:
Variation margin		2,140
Fund shares redeemed		10,104
Management fees		3,398
Custodian fees		125
Transfer agent/maintenance fees		944
Distribution and service fees		960
Portfolio accounting fees		378
Licensing fees		4,733
Other		1,488
Total liabilities		24,270
Net assets	$	4,447,082
Net assets consist of:
Paid in capital		4,248,167
Accumulated net investment loss		(19,464	)
Undistributed net realized gain on sale of investments		158,911
Net unrealized appreciation in value of investments		59,468
Net assets		4,447,082
A-Class:
Net assets	$	3,053,974
Capital shares outstanding		116,938
Net asset value per share		$26.12
Maximum offering price per share*		$27.42
C-Class:
Net assets	$	38,253
Capital shares outstanding		1,467
Net asset value per share		$26.08
H-Class:
Net assets	$	1,344,402
Capital shares outstanding		51,476
Net asset value per share		$26.12
Institutional Class:
Net assets	$	10,453
Capital shares outstanding		400
Net asset value per share		$26.13
Investments, at cost	$	2,992,831
Repurchase agreement, at cost		1,178,428
Total cost	$	4,171,259

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010^†

Investment Income:
Interest	$	3,008
Total investment income		3,008
Expenses:
Management fees		10,650
Transfer agent and administrative fees		2,958
Distribution and Service Fees:
A-Class		2,114
C-Class		55
H-Class		824
Portfolio accounting fees		1,183
Trustees’ fees**		11
Licensing fees		4,733
Miscellaneous		1,869
Total expenses		24,397
Less expenses waived by Advisor		(1,925	)
Net expenses		22,472
Net investment loss		(19,464	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Futures contracts		158,911
Net realized gain		158,911
Net unrealized appreciation (depreciation) during the period on:
Investment securities		2,970
Futures contracts		56,498
Net unrealized appreciation		59,468
Net realized and unrealized gain		218,379
Net increase in net assets resulting from operations	$	198,915

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
†	Since commencement of operations: June 30, 2010.

52    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  ALTERNATIVE STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,
	2010		*
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(19,464	)
Net realized gain during the period on investments		158,911
Net unrealized appreciation during the period on investments		59,468
Net increase in net assets resulting from operations		198,915
Distributions to Shareholders		—
Capital share transactions:
Proceeds from sale of shares
A-Class		3,751,701
C-Class		37,577
H-Class		1,824,636
Institutional Class		10,000
Redemption fees
A-Class		0
C-Class		0
H-Class		0
Institutional Class		0
Cost of shares redeemed
A-Class		(844,376	)
C-Class		—
H-Class		(531,371	)
Institutional Class		—
Net increase from capital share transactions		4,248,167
Net increase in net assets		4,447,082
Net assets:
Beginning of period		—
End of period	$	4,447,082
Accumulated net investment loss at end of period	$	(19,464	)
Capital share activity:
Shares sold
A-Class		149,659
C-Class		1,467
H-Class		72,222
Institutional Class		400
Shares redeemed
A-Class		(32,721	)
C-Class		—
H-Class		(20,746	)
Institutional Class		—
Total capital share activity		170,281

* Since the commencement of operations: June 30, 2010.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    53

  ALTERNATIVE STRATEGIES FUND

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.

	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	A-Class			C-Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.11	)		(.15	)
Net gain on securities (realized and unrealized)		1.23			1.23
Total from investment operations		1.12			1.08
Redemption fees collected		—	f		—	f
Net asset value, end of period		$26.12			$26.08
Total Returnd		4.48%			4.28%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,054			$38
Ratios to average net assets:
Net investment loss		(1.64%	)		(2.39%	)
Total expenses		2.06%			2.81%
Net expensese		1.90%			2.65%
Portfolio turnover rate		—			—
	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	H-Class			Institutional Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.11	)		(.09	)
Net gain on securities (realized and unrealized)		1.23			1.22
Total from investment operations		1.12			1.13
Redemption fees collected		—	f		—	f
Net asset value, end of period		$26.12			$26.13
Total Returnd		4.48%			4.52%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,344			$10
Ratios to average net assets:
Net investment loss		(1.64%	)		(1.38%	)
Total expenses		2.06%			1.81%
Net expensese		1.90%			1.64%
Portfolio turnover rate		—			—

a	Since commencement of operations June 30, 2010.
b	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment loss was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after voluntary expense waivers.
f	Redemption fees collected are less than $.01.

54    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)

September 30, 2010

LONG SHORT EQUITY STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond to the performance of a specific benchmark that seeks to track the performance of the universe of long/short equity hedge funds (i.e., funds that buy equities that are expected to increase in value and sell short equities that are expected to decrease in value). The Fund’s current benchmark is the Credit Suisse Long/Short Liquid Index (the “Underlying Index”).

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2010
C-Class	June 30, 2010
H-Class	June 30, 2010

The Fund invests principally in futures contracts and exchange traded funds.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    55

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 LONG SHORT EQUITY STRATEGY FUND

	Face		Market
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES †† - 51.9%
Freddie Mac1 0.32% due 06/21/11	$	1,000,000	$	998,539
Farmer Mac2 0.36% due 05/31/11		500,000		499,361
Total Federal Agency Discount Notes (Cost $1,496,416)				1,497,900
REPURCHASE AGREEMENTS††,3 - 26.6%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		293,091		293,091
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		292,765		292,765
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		120,977		120,977
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		30,909		30,909
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		30,244		30,244
Total Repurchase Agreements (Cost $767,986)				767,986
Total Long Investments - 78.5% (Cost $2,264,402)			$	2,265,886
		Shares
EXCHANGE TRADED FUND SOLD SHORT† - (8.9%)
Financial Select Sector SPDR Fund		18,000		(258,300	)
Total Exchange Traded Fund Sold Short (Proceeds $264,236)				(258,300	)
Cash & Other Assets, Less Liabilities - 30.4%				878,574
Total Net Assets - 100.0%			$	2,886,160

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS PURCHASED†
December 2010 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Market Value of
Contracts $647,460)		12	$	42,998
December 2010 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of
Contracts $918,505)		23		19,984
(Total Aggregate Market Value of Contracts $1,565,965)			$	62,982

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 6.

56    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  LONG SHORT EQUITY STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	1,497,900
Repurchase agreement, at value		767,986
Total investments		2,265,886
Segregated cash with broker		906,258
Receivables:
Other assets		271
Total assets		3,172,415
Liabilities:
Securities sold short, at value		258,300
Payable for:
Variation margin		4,555
Fund shares redeemed		16,378
Management fees		2,121
Custodian fees		78
Transfer agent/maintenance fees		589
Distribution and service fees		603
Portfolio accounting fees		236
Licensing fees		2,442
Interest		75
Other		878
Total liabilities		286,255
Net assets	$	2,886,160
Net assets consist of:
Paid in capital		2,716,210
Accumulated net investment loss		(15,676	)
Undistributed net realized gain on sale of investments		115,224
Net unrealized appreciation in value of investments		70,402
Net assets		2,886,160
A-Class:
Net assets	$	1,805,484
Capital shares outstanding		67,719
Net asset value per share		$26.66
Maximum offering price per share*		$27.99
C-Class:
Net assets	$	66,878
Capital shares outstanding		2,513
Net asset value per share		$26.61
H-Class:
Net assets	$	1,003,127
Capital shares outstanding		37,626
Net asset value per share		$26.66
Institutional Class:
Net assets	$	10,671
Capital shares outstanding		400
Net asset value per share		$26.68
Investments, at cost	$	1,496,416
Repurchase agreement, at cost		767,986
Total cost	$	2,264,402
Securities sold short, proceeds		264,236

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010^†

Investment Income:
Interest	$	1,510
Total investment income		1,510
Expenses:
Management fees		6,280
Transfer agent and administrative fees		1,744
Distribution and Service Fees:
A-Class		1,166
C-Class		51
H-Class		559
Portfolio accounting fees		698
Trustees’ fees**		6
Short sales dividend expense		3,806
Prime broker interest expense		119
Licensing fees		2,442
Miscellaneous		1,103
Total expenses		17,974
Less expenses waived by Advisor		(788	)
Net expenses		17,186
Net investment loss		(15,676	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		15,393
Futures contracts		99,968
Securities sold short		(137	)
Net realized gain		115,224
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		1,484
Futures contracts		62,982
Securities sold short		5,936
Net unrealized appreciation		70,402
Net realized and unrealized gain		185,626
Net increase in net assets resulting from operations	$	169,950

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
†	Since the commencement of operations: June 30, 2010.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    57

  LONG SHORT EQUITY STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,
	2010		*
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(15,676	)
Net realized gain during the period on investments		115,224
Net unrealized appreciation during the period on investments		70,402
Net increase in net assets resulting from operations		169,950
Distributions to shareholders		—
Capital share transactions:
Proceeds from sale of shares
A-Class		2,248,058
C-Class		71,882
H-Class		1,315,695
Institutional Class		10,000
Redemption fees collected
A-Class		1
C-Class		0
H-Class		0
Institutional Class		0
Cost of shares redeemed
A-Class		(560,157	)
C-Class		(6,075	)
H-Class		(363,194	)
Institutional Class		—
Net increase from capital share transactions		2,716,210
Net increase in net assets		2,886,160
Net assets:
Beginning of period		—
End of period	$	2,886,160
Accumulated net investment loss at end of period	$	(15,676	)
Capital share activity:
Shares sold
A-Class		89,329
C-Class		2,750
H-Class		51,857
Institutional Class		400
Shares redeemed
A-Class		(21,610	)
C-Class		(237	)
H-Class		(14,231	)
Institutional Class		—
Total capital share activity		108,258

* Since the commencement of operations: June 30, 2010.

58    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

  LONG SHORT EQUITY STRATEGY FUND

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.

	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	A-Class			C-Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.15	)		(.19	)
Net gain on securities (realized and unrealized)		1.81			1.80
Total from investment operations		1.66			1.61
Redemption fees collected		—	g		—	g
Net asset value, end of period		$26.66			$26.61
Total Returnd		6.64%			6.44%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,805			$67
Ratios to average net assets:
Net investment loss		(2.23%	)		(3.07%	)
Total expenses		2.56%			3.41%
Net expensese		2.45%			3.29%
Operating expensesf		1.90%			2.64%
Portfolio turnover rate		528%			528%

	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	H-Class			Institutional Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.15	)		(.13	)
Net gain on securities (realized and unrealized)		1.81			1.81
Total from investment operations		1.66			1.68
Redemption fees collected		—	g		—	g
Net asset value, end of period		$26.66			$26.68
Total Returnd		6.64%			6.72%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,003			$11
Ratios to average net assets:
Net investment loss		(2.26%	)		(1.99%	)
Total expenses		2.59%			2.31%
Net expensese		2.47%			2.21%
Operating expensesf		1.89%			1.65%
Portfolio turnover rate		528%			528%

a	Since commencement of operations June 30, 2010.
b	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized
c	Net investment loss was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after voluntary expense waivers.
f	Operating expenses exclude interest and dividend expense from securities sold short.
g	Redemption fees collected are less than $.01.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    59

FUND PROFILE (Unaudited)

September 30, 2010

LONG SHORT INTEREST RATE STRATEGY FUND

OBJECTIVE: Seeks to maximize total return by taking advantage of price movements in the U.S. Treasury bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2010
C-Class	June 30, 2010
H-Class	June 30, 2010

The Fund invests principally in derivative investments such as futures contracts.

60    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

 LONG SHORT INTEREST RATE STRATEGY FUND

	Face		Market
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 61.7%
Freddie Mac1
0.25% due 06/07/11	$	3,000,000	$	2,995,851
0.30% due 06/21/11		3,000,000		2,995,617
Fannie Mae1
0.30% due 03/01/11		2,000,000		1,998,574
0.23% due 06/01/11		2,000,000		1,997,300
Farmer Mac2
0.36% due 05/31/11		1,000,000		998,723
Total Federal Agency Discount Notes
(Cost $10,980,196)				10,986,065
REPURCHASE AGREEMENTS††,3 - 36.6%
Mizuho Financial Group, Inc. issued 09/30/10 at 0.20% due 10/01/10		2,486,338		2,486,338
HSBC Group issued 09/30/10 at 0.20% due 10/01/10		2,483,570		2,483,570
Morgan Stanley issued 09/30/10 at 0.19% due 10/01/10		1,026,269		1,026,269
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		262,203		262,203
Deutsche Bank issued 09/30/10 at 0.20% due 10/01/10		256,567		256,567
Total Repurchase Agreements
(Cost $6,514,947)				6,514,947
Total Investments - 98.3%
(Cost $17,495,143)			$	17,501,012
Cash & Other Assets, Less Liabilities - 1.7%				298,432
Total Net Assets - 100.0%			$	17,799,444

			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
December 2010 U.S. 5 Year
Treasury Note
Futures Contracts
(Aggregate Market Value of
Contracts $6,647,695)		55	$	62,797
December 2010 U.S. 10 Year
Note Futures Contracts
(Aggregate Market Value of
Contracts $4,033,500)		32		41,059
December 2010 U.S. Long Bond
Futures Contracts
(Aggregate Market Value of
Contracts $2,005,313)		15		12,790
December 2010 U.S. 2 Year
Note Futures Contracts
(Aggregate Market Value of
Contracts $7,023,000)		32		11,046
December 2010 Ultra Long-Term
U.S. Treasury Bond Futures
Contracts (Aggregate Market
Value of Contracts $564,875)		4		(2,006	)
(Total Aggregate Market Value of
Contracts $20,274,383)			$	125,686

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	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.
3	Repurchase Agreements — See Note 6.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    61

  LONG SHORT INTEREST RATE STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investments, at value	$	10,986,065
Repurchase agreement, at value		6,514,947
Total investments		17,501,012
Segregated cash with broker		158,700
Receivables:
Variation margin		1,374
Fund shares sold		194,918
Interest		36
Total assets		17,856,040
Liabilities:
Payable for:
Fund shares redeemed		35,257
Management fees		9,980
Custodian fees		439
Transfer agent/maintenance fees		3,327
Distribution and service fees		3,624
Portfolio accounting fees		1,330
Other		2,639
Total liabilities		56,596
Net assets	$	17,799,444
Net assets consist of:
Paid in capital		17,554,985
Accumulated net investment loss		(37,019	)
Undistributed net realized gain on sale of investments		149,923
Net unrealized appreciation in value of investments		131,555
Net assets		17,799,444
A-Class:
Net assets	$	8,640,400
Capital shares outstanding		336,910
Net asset value per share		$25.65
Maximum offering price per share*		$26.93
C-Class:
Net assets	$	750,164
Capital shares outstanding		29,305
Net asset value per share		$25.60
H-Class:
Net assets	$	8,398,615
Capital shares outstanding		327,485
Net asset value per share		$25.65
Institutional Class:
Net assets	$	10,265
Capital shares outstanding		400
Net asset value per share		$25.66
Investments, at cost	$	10,980,196
Repurchase agreement, at cost		6,514,947
Total cost	$	17,495,143

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010^†

Investment Income:
Interest	$	6,979
Total investment income		6,979
Expenses:
Management fees		21,634
Transfer agent and administrative fees		7,211
Distribution and Service Fees:
A-Class		4,362
C-Class		608
H-Class		2,691
Portfolio accounting fees		2,885
Trustees’ fees**		1,026
Miscellaneous		3,581
Total expenses		43,998
Net investment loss		(37,019	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Futures contracts		149,923
Net realized gain		149,923
Net unrealized appreciation (depreciation)
during the period on:
Investment securities		5,869
Futures contracts		125,686
Net unrealized appreciation		131,555
Net realized and unrealized gain		281,478
Net increase in net assets resulting from operations	$	244,459

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
†	Since the commencement of operations: June 30, 2010.

62    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

1

  LONG SHORT INTEREST RATE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended
	September 30,
	2010		*
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(37,019	)
Net realized gain during the period on investments		149,923
Net unrealized appreciation during the period on investments		131,555
Net increase in net assets resulting from operations		244,459
Distributions to shareholders		—
Capital share transactions:
Proceeds from sale of shares
A-Class		9,841,407
C-Class		747,159
H-Class		9,606,887
Institutional Class		10,000
Redemption fees collected
A-Class		207
C-Class		11
H-Class		171
Institutional Class		0
Cost of shares redeemed
A-Class		(1,367,718	)
C-Class		(361	)
H-Class		(1,282,778	)
Institutional Class		—
Net increase from capital share transactions		17,554,985
Net increase in net assets		17,799,444
Net assets:
Beginning of period		—
End of period	$	17,799,444
Accumulated net investment loss at end of period	$	(37,019	)
Capital Share Activity:
Shares sold
A-Class		390,729
C-Class		29,319
H-Class		378,156
Institutional Class		400
Shares redeemed
A-Class		(53,819	)
C-Class		(14	)
H-Class		(50,671	)
Institutional Class		—
Total capital share activity		694,100

* Since the commencement of operations: June 30, 2010.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    63

2

  LONG SHORT INTEREST RATE STRATEGY FUND

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.

	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	A-Class			C-Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.08	)		(.12	)
Net gain on securities (realized and unrealized)		.73			.72
Total from investment operations		.65			.60
Redemption fees collected		—	e		—	e
Net asset value, end of period		$25.65			$25.60
Total Returnd		2.60%			2.40%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,640			$750
Ratios to average net assets:
Net investment loss		(1.27%	)		(2.02%	)
Total expenses		1.51%			2.26%
Portfolio turnover rate		—			—
	Period Ended			Period Ended
	September 30,			September 30,
	2010		a,b	2010		a,b
	H-Class			Institutional Class
Per Share Data
Net asset value, beginning of period		$25.00			$25.00
Income (loss) from investment operations:
Net investment lossc		(.08	)		(.06	)
Net gain on securities (realized and unrealized)		.73			.72
Total from investment operations		.65			.66
Redemption fees collected		—	e		—	e
Net asset value, end of period		$25.65			$25.66
Total Returnd		2.60%			2.64%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,399			$10
Ratios to average net assets:
Net investment loss		(1.27%	)		(1.02%	)
Total expenses		1.51%			1.26%
Portfolio turnover rate		—			—

a	Since commencement of operations June 30, 2010.
b	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment loss was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Redemption fees collected are less than $.01.

64    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

3

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1.    Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company. The Trust offers eight separate classes of shares, Investor Class shares, Investor2 Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, and Institutional Class shares. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Sales of shares of each Class are made without a sales charge at the NAV, with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge, except for the U.S. Government Money Market Fund. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At September 30, 2010, the Trust consisted of fifty-nine separate funds. This report covers the Alternatives Funds (the “Funds”), while the other Funds are contained in separate reports.

The Alternative Strategies Allocation Fund is a “fund of funds,” which means that the Fund seeks to achieve its investment objective by investing primarily in other Rydex mutual funds (the “underlying funds”) instead of individual securities.

As of September 30, 2010, only A-Class, C-Class, H-Class and Institutional Class shares had been issued in the Funds.

Security Global Investors, LLC. (“SGI”) serves as investment sub-adviser to the International Long Short Select Fund, Global 130/30 Strategy Fund and Equity Market Neutral Fund and is responsible for the day-to-day management of each Fund’s portfolio. SGI manages the day-to-day investment and reinvestment of the assets of the International Long Short Select Fund, Global 130/30 Strategy Fund and Equity Market Neutral Fund, in accordance with the investment objectives, policies, and limitations of each Fund, subject to the general supervision and control of the Advisor and the Board and the officers of the Trust.

Prior to June 8, 2010, the International Long Short Select Fund was sub-advised by Valu-Trac Investment Management Limited (“Valu-Trac”) pursuant to the terms of a sub-advisory agreement dated January 18, 2008, between the Advisor and Valu-Trac (the Valu-Trac Sub Advisory Agreement”).

American Independence Financial Services, LLC, serves as investment sub-adviser to the Long Short Interest Rate Strategy Fund. The Sub-Advisor constructs and provides the Advisor with the Long Short Interest Rate Strategy Fund’s investment model via our electronic signal.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

Significant Accounting Policies

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. All time references are based on Eastern Time.

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 the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, usually as of 4:00 p.m. Long options are valued using the bid price and short options are valued using the ask price. In the event that a settlement price is not available, fair valuation is enacted. Over-the-counter options held by the Trust are valued using the average bid price (for long options), or average ask price (for short options) 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 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    65

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Debt securities with a maturity greater than 60 days are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a security is valued at the reported bid price, at the close of business. Short-term debt securities, with a maturity of 60 days or less and repurchase agreements are valued at amortized cost, which approximates market value.

Open-end investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange Traded Funds (“ETFs”) and closed-end investment companies are valued at the last quoted sales price.

Structured notes are valued in accordance with the terms of their agreement at the value of the underlying index close, usually 4:00 p.m. adjusted for any interest accruals and financing charges. If the securities comprising the underlying index cease trading before a Fund’s close of business, the index will be fair valued with the use of an appropriate market indicator.

Investments, for which market quotations are not readily available, are fair valued as determined in good faith by Rydex Investments under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related-markets.

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. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually.

Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. When a Fund engages in a short sale of an equity or fixed income security, 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 cash and/or securities as collateral for short sales. The Fund is exposed to market risk based on the amount, if any, that the market value of the security exceeds the market value of the securities in the segregated account. Fees, if any, paid to brokers to borrow securities in connection with short sales are considered part of the cost of short sale transactions. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the treasury obligation to the lender and record this as an expense. Short dividends or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short or incur rebate charges to borrow certain securities.

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, that Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, that 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, that Fund 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 purchased by that Fund 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 that Fund’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 a Fund enters into a closing purchase transaction, that 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 enter into stock and bond index futures contracts and options on such futures contracts. Futures

66    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

G. The Trust may invest in structured notes, which are over-the-counter contracts linked to the performance of an underlying benchmark such as interest rates, equity markets, equity indices, commodities indices, corporate credits or foreign exchange markets. A structured note is a type of bond in which an issuer borrows money from investors and pays back the principal, adjusted for performance of the underlying benchmark, at a specified maturity date. In addition, the contract may require periodic interest payments. Structured notes are used to obtain exposure to a market without owning or taking physical custody of securities or commodities. Fluctuations in value of the structured notes are recorded as unrealized gains and losses in the accompanying financial statements. Coupon payments are recorded as income while net payments are recorded as net realized gains or losses.

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, a 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. At September 30, 2010, none of the Funds held forward currency contracts.

J. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.

K. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate. Segregated cash with the broker is held as collateral for investments in derivative instruments such as futures contracts and index swap agreements.

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 related to A-Class shares and H-Class shares and service and distribution fees related to C-Class shares, are charged directly to such Classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

M. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    67

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

2.    Financial Instruments

As part of its investment strategy, the Trust may utilize short sales and a variety of derivative instruments including options, futures, options on futures, structured notes, 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.

A short sale is a transaction in which a Fund sells an equity or fixed income security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, that Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, that Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

The risk associated with purchasing options is limited to the premium originally paid. 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.

There are several risks in connection with the use of futures contracts. 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.

There are several risks associated with the use of structured notes. Structured notes are leveraged, thereby providing an exposure to the underlying benchmark greater than the face amount and increasing the volatility of each note relative to the change in the underlying linked financial instrument. A highly liquid secondary market may not exist for the structured notes a Fund invests in, which may make it difficult for that Fund to sell the structured notes it holds at an acceptable price or to accurately value them. In addition, structured notes are subject to the risk that the counterparty to the instrument, or issuer, might not pay interest when due or repay principal at maturity of the obligation. Although the Trust will not invest in any structured notes unless Rydex Investments believes that the issuer is creditworthy, a Fund does bear

the risk of loss of the amount expected to be received in the event of the default or bankruptcy of the issuer.

There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions, due to the fact they could be considered illiquid. Although the Trust will not enter into any swap agreement unless Rydex Investments believes that the other party to the transaction is creditworthy, the Funds 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.

In conjunction with the use of short sales, options, futures, options on futures, structured notes and swap agreements, 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 and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund.

The risks inherent in the use of short sales, options, futures contracts, options on futures contracts, structured notes, and swap agreements, include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counter-party credit risk.

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to, engage in currency hedging transactions, which generally involve buying currency forward, options or futures contracts. However, not all currency

68    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

risk may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

The Fund may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets may fluctuate more than those of securities traded on U.S. markets. Many foreign countries lack accounting and disclosure standards comparable to those that apply to U.S. companies, and it may be more difficult to obtain reliable information regarding a foreign issuer’s financial condition and operations. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries portions of these taxes are recoverable, the non-recovered portion will reduce the income received by the Fund.

Emerging markets, which consist of countries that have an emerging stock market as defined by Standard & Poor’s^®, countries or markets with low- to middle-income economies as classified by the World Bank, and other countries or markets with similar characteristics as determined by Rydex Investments, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. As a result, the securities of emerging market issuers may present market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in securities of developed foreign countries. In addition, the risks associated

with investing in a narrowly defined geographic area are generally more pronounced with respect to investments in emerging market countries. The Fund may also be subject to this risk with respect to its investments in derivatives or other securities or financial instruments whose returns are related to the returns of emerging market securities.

The Fund may invest in financial instruments involving counterparties for the purpose of attempting to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. Such financial instruments include, among others, total return, index, interest rate swaps, and structured notes. The Fund will use short-term counterparty agreements to exchange the returns (or differentials in rates of return) earned or realized in particular predetermined investments or instruments. The Fund will not enter into any agreement with a counterparty unless the Advisor believes that the other party to the transaction is creditworthy. The use of swap agreements, structured notes and other similar instruments involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. If a counterparty defaults on its payment obligations to the Fund, this default will cause the value of your investment in the Fund to decrease. In addition, the Fund may enter into swap agreements with a limited number of counterparties, and may invest in commodity-linked structured notes issued by a limited number of issuers that will act as counterparties, which may increase the Fund’s exposure to counterparty credit risk. Swap agreements and structured notes also may be considered to be illiquid.

Because the value of a credit or equity-linked derivative investment typically is based upon the price movements of the credit instrument, equity security or credit or equity index, or some other readily measurable economic variable, the value of credit or equity-linked derivative instruments may be affected by changes in overall market movements, volatility of the benchmark, changes in interest rates, or factors affecting a particular industry or security, such as international economic, political and regulatory developments or significant changes in the credit-worthiness of an issuer.

3.    Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires disclosures to enable investors to better understand how

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    69

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.

Certain Funds seek to gain exposure to their respective benchmarks by investing in currency, and financial-linked derivative instruments, including futures and options on futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Fund’s
Fund	net assets on a daily basis
U.S. Long Short Momentum Fund		10%
Event Driven and Distressed Strategies Fund		120%
Alternative Strategies Fund		80%
Long Short Equity Strategy Fund		55%
Long Short Interest Rate Strategy Fund		115%

The following is a summary of the location of derivative investments on the Fund’s Statements of Assets and Liabilities as of September 30, 2010:

Location on the Statements of Assets and Liabilities
Derivative Investments Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation Margin	Variation Margin
	Unrealized Appreciation on Swap Agreements	Unrealized Depreciation on Swap Agreements
Corporate Bond Contracts	Unrealized Appreciation on Swap Agreements	Unrealized Depreciation on Swap Agreements

The following is a summary of the location of derivative investments on the Fund’s Statements of Assets and Liabilities as of September 30, 2010:

	Asset Derivative Investments Value
			Swaps
	Futures		Corporate		Futures		Total Value at
	Equity		Bond		Interest Rate		September 30,
Fund	Contracts*		Contracts		Contracts*		2010
U.S. Long Short Momentum Fund	$	—	$	—	$	—	$	—
International Long Short Select Fund		—		—		—		—
Alternative Strategies Allocation Fund		—		—		—		—
Global 130/30 Strategy Fund		—		—		—		—
Equity Market Neutral Fund		—		—		—		—
Event Driven and Distressed Strategies Fund		—		100,318		—		100,318
Alternative Strategies Fund		134,862		—		—		134,862
Long Short Equity Strategy Fund		62,982		—		—		62,982
Long Short Interest Rate Strategy Fund		—		—		127,692		127,692

	Liability Derivative Investments Value
			Swaps
	Futures		Corporate		Futures		Total Value at
	Equity		Bond		Interest Rate		September 30,
Fund	Contracts*		Contracts		Contracts*		2010
U.S. Long Short Momentum Fund	$	626,548	$	—	$	—	$	626,548
International Long Short Select Fund		—		—		—		—
Alternative Strategies Allocation Fund		—		—		—		—
Global 130/30 Strategy Fund		—		—		—		—
Equity Market Neutral Fund		—		—		—		—
Event Driven and Distressed Strategies Fund		—		—		—		—
Alternative Strategies Fund		78,364						78,364
Long Short Equity Strategy Fund		—		—		—		—
Long Short Interest Rate Strategy Fund		—		—		2,006		2,006

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments.
Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

70    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following is a summary of the location of derivative investments on the Fund’s Statements of Operations as of September 30, 2010:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net Realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures contracts and swap agreements
Currency Contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures contracts
Credit Contracts	Net realized gain (loss) on swap agreements
	Change in net unrealized appreciation (depreciation) on swap agreements
Corporate Bond Contracts	Net realized gain (loss) on swap agreements
	Change in net unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of September 30, 2010:

	Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
	Futures			Swaps		Futures			Credit		Swaps		Futures		Total Value at
	Equity			Equity		Currency			Default		Corporate Bond		Interest Rate		September 30,
Fund	Contracts			Contracts		Contracts			Contracts		Contracts		Contracts		2010
U.S. Long Short Momentum Fund	$	(147,732	)	$	—	$	—		$	—	$	—	$	—	$	(147,732	)
International Long Short Select Fund		(1,571,055	)		—		(154,487	)		—		—		—		(1,725,542	)
Alternative Strategies Allocation Fund		—			—		—			—		—		—		—
Global 130/30 Strategy Fund		—			—		—			—		—		—		—
Equity Market Neutral Fund		—			—		—			—		—		—		—
Event Driven and Distressed Strategies Fund		—			347,817		—			7,195		355,784		—		710,796
Alternative Strategies Fund		158,911			—		—			—		—		—		158,911
Long Short Equity Strategy Fund		99,968			—		—			—		—		—		99,968
Long Short Interest Rate Strategy Fund		—			—		—			—		—		149,923		149,923

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations
	Futures		Swaps		Futures		Credit		Swaps		Futures		Total Value at
	Equity		Equity		Currency		Default		Corporate Bond		Interest Rate		September 30,
Fund	Contracts		Contracts		Contracts		Contracts		Contracts		Contracts		2010
U.S. Long Short Momentum Fund	$	626,548	$	—	$	—	$	—	$	—	$	—	$	626,548
International Long Short Select Fund		15,568		—		92,522		—		—		—		108,090
Alternative Strategies Allocation Fund		—		—		—		—		—		—		—
Global 130/30 Strategy Fund		—		—		—		—		—		—		—
Equity Market Neutral Fund		—		—		—		—		—		—		—
Event Driven and Distressed Strategies Fund		—		35,976		—		—		64,342		—		100,318
Alternative Strategies Fund		56,498		—		—		—		—		—		56,498
Long Short Equity Strategy Fund		62,982		—		—		—		—		—		62,982
Long Short Interest Rate Strategy Fund		—		—		—		—		—		125,686		125,686

4.    Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays Rydex Investments investment advisory fees calculated at an annualized rate of 0.90% of the average daily net assets of the U.S. Long Short Momentum Fund, Event Driven and Distressed Strategies Fund, Alternative Strategies Fund, Long Short Equity Strategy Fund and the International Long Short Select Fund, 0.75% of the average daily net assets of the Long Short Interest Rate Strategy Fund, 1.05% of the average daily net assets of the Global 130/30 Strategy Fund, and 1.20% of the average daily net assets of the Equity Market Neutral Fund. The Alternative Strategies Allocation Fund does not pay Rydex Investments a management fee.

The Advisor has contractually agreed to reduce fees and/or reimburse expenses for the Event Driven and Distressed Strategies Fund, Alternatives Strategies Fund, and Long Short Equity Strategy Fund to the extent necessary to keep net operating expenses for A-Class, C-Class, H-Class, and Institutional Class Shares (excluding interest, taxes, brokerage commissions, Acquired Fund Fees and Expenses, dividends on securities sold short, and extraordinary expenses (“Excluded Expenses”)) from exceeding 1.90%, 2.65%, 1.90%, and 1.65%, respectively, of the Fund’s A-Class, C-Class, H-Class, and Institutional Class Shares average daily net assets until July 31, 2011. The Total Annual Fund Operating Expenses After Fee

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    71

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Waiver and/or Expense Reimbursement includes Excluded Expenses and, thus, from time to time may be higher than 1.90%, 2.65%, 1.90%, and 1.65%, respectively. This Agreement may be terminated: (i) by the Board, for any reason at any time, or (ii) by the Advisor, upon ninety (90) days’ prior written notice to the Trust, effective as of the close of the business on the last day of the then-current one-year period.

Rydex Investments provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each Fund.

Rydex Investments 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 Fund.

Rydex Investments engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which the Distributor and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds 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.

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 0.75% of the Alternative Strategies Allocation Fund and 1.00% of the remaining 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 distribution fee of 0.75% for the Funds reimburses the Distributor for paying the shareholder’s financial advisor an ongoing sales commission. The Distributor advances the first year’s service and distribution fees to the financial advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended September 30, 2010, the Distributor retained sales charges of $321,536 relating to sales of A-Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

5.    Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders. Therefore, no Federal income tax provision has been recorded.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal years 2007 – 2010), and has concluded that no provision for income tax was required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales, losses deferred due to post-October losses, unsettled short sales and excise tax regulations.

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period, capital loss carryforward expired, and the utilization of earnings and profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

At September 30, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an access 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:

72    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

			Tax Unrealized		Tax Unrealized			Net Unrealized
Fund Name	Tax Cost		Gain		Loss			Gain (Loss		)
U.S. Long Short Momentum Fund	$	156,045,515	$	13,838,453	$	(2,249,579	)	$	11,588,874
International Long Short Select Fund		5,288,178		543,132		(8,149	)		534,983
Alternative Strategies Allocation Fund		25,178,699		467,818		(824,827	)		(357,009	)
Global 130/30 Strategy Fund		5,450,722		1,103,805		(38,059	)		1,065,746
Equity Market Neutral Fund		12,504,620		1,029,497		(786,021	)		243,476
Event Driven and Distressed Strategies Fund		11,259,908		6,120		—			6,120
Alternative Strategies Fund		4,171,259		2,970		—			2,970
Long Short Equity Strategy Fund		2,265,936		—		(50	)		(50	)
Long Short Interest Rate Strategy Fund		17,495,143		5,869		—			5,869

6.    Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Fund’s custodian and is evaluated to ensure that its market value exceeds at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Mizuho Financial Group, Inc.	0.20% due 10/01/10	$	726,809,144	$	726,809,144	$	726,813,182
HSBC Group	0.20% due 10/01/10		726,000,000		726,000,000		726,004,033
Morgan Stanley	0.19% due 10/01/10		300,000,000		300,000,000		300,001,583
Credit Suisse Group	0.18% due 10/01/10		218,789,532		218,789,532		218,790,626
Deutsche Bank	0.20% due 10/01/10		75,000,000		75,000,000		75,000,417
				$	2,046,598,676	$	2,046,609,841

Security Type	Maturity Dates		Range of Rates			Par Value		Market Value
U.S. Treasury Bills		11/26/10 - 09/22/11		0.00%		$	966,195,000	$	964,510,820
U.S. Treasury Bonds		11/15/24 - 11/15/39		4.38% - 7.50	%		643,266,700		740,520,142
U.S. Tip Note		4/15/14		1.25%			280,933,500		306,000,050
U.S. Treasury Note		10/31/16		3.13%			67,765,000		76,500,110
								$	2,087,531,122

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their 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 Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

7.    Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1	—	quoted prices in active markets for identical securities.
Level 2	—	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3	—	significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2010:

	Level 1		Level 1			Level 2		Level 2
	Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	Total
Assets
U.S Long Short Momentum Fund	$	158,064,751	$	—		$	9,569,638	$	—		$	167,634,389
International Long Short Select Fund		4,581,487		—			1,241,674		—			5,823,161
Alternative Strategies Allocation Fund		24,549,527		—			272,163		—			24,821,690
Global 130/30 Strategy Fund		6,493,238		—			23,230		—			6,516,468
Equity Market Neutral Fund		12,748,096		—			—		—			12,748,096
Event Driven and Distressed Strategies Fund		—		—			11,266,028		100,318			11,366,346
Alternative Strategies Fund		—		56,498			4,174,229		—			4,230,727
Long Short Equity Strategy Fund		—		62,982			2,265,886		—			2,328,868
Long Short Interest Rate Strategy Fund		—		125,686			17,501,012		—			17,626,698
	Level 1		Level 1			Level 2		Level 2
	Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	Total
Liabilities
U.S Long Short Momentum Fund	$	—	$	626,548		$	—	$	—		$	626,548
International Long Short Select Fund		1,469,106		—			—		—			1,469,106
Alternative Strategies Allocation Fund		—		—			—		—			—
Global 130/30 Strategy Fund		—		—			—		—			—
Equity Market Neutral Fund		12,256,245		—			104		—			12,256,349
Event Driven and Distressed Strategies Fund		—		—			—		—			—
Alternative Strategies Fund		—		—			—		—			—
Long Short Equity Strategy Fund		258,300		—			—		—			258,300
Long Short Interest Rate Strategy Fund		—		—			—		—			—

* Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

8.    Securities Transactions

For the period ended September 30, 2010, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	U.S. Long Short		International		Alternative		Global 130/30			Equity
	Momentum		Long Short Select		Strategies		Strategy			Market Neutral
	Fund		Fund		Allocation Fund		Fund			Fund
Purchases	$	220,268,298	$	13,861,775	$	23,435,871	$	19,933,477		$	2,814,202
Sales	$	254,393,498	$	16,528,894	$	28,326,223	$	27,357,641		$	3,385,463
			Event Driven and		Alternative		Long Short Equity			Long Short
			Distressed Strategies		Strategies		Strategy			Interest Rate
			Fund		Fund		Fund			Strategy Fund
Purchases			$	—	$	—	$	(355,041	)	$	—
Sales			$	—	$	—	$	(75,550	)	$	—

9.    Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33¹/3% of a Fund’s net assets, 33¹/3% of a Fund’s assets held by the Custodian or 33¹/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the period ended September 30, 2010, the Funds did not have any outstanding borrowings under this agreement.

10.    New Share Class

On May 3, 2010, the Equity Market Neutral Fund introduced the I-Class share class. On June 22, 2010, the I-Class Shares were renamed Institutional Class Shares. Accordingly, all references to I-Class Shares in the Prospectuses and SAIs are

74    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)

now replaced with Institutional Class Shares. All fees and expenses associated with the share class remain the same and are not affected by the name change.

11.    Name Changes

On May 25, 2010, the Global Market Neutral Fund changed its Fund name to the Equity Market Neutral Fund. On May 28, 2010, the All-Cap Opportunity Fund changed its Fund name to the U.S. Long Short Momentum Fund. On June 7, 2010, the International Opportunity Fund changed its Fund name to International Long Short Select Fund. The name changes did not have any impact on the Funds’ investment objectives, tickers, or CUSIPS.

12.    Redemption Fees

Effective September 13, 2010, the 1% short-term trading fee that applies to the firm’s alternative suite of mutual funds was removed. Rydex Investments believes the removal of the fee is in the best interest of current shareholders. It is important to note the funds are not intended for short term trading and we will continue to monitor for harmful trading activity in the funds. To that end, Rydex Investments is not actively promoting the elimination of the redemption fee to clients via written communications as we don’t want to encourage short-term trading on these products from active trading clients, which could potentially damage long-term performance for other shareholders. A supplement to the prospectuses was filed on September 13, 2010.

13.    Guggenheim Acquisition

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors, LLC (formerly PADCO Advisors, Inc.), the Funds’ investment adviser (the “Investment Adviser”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Adviser (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction is not expected to result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreements with the Investment Advisers and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

14.    Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

15.    New Accounting Pronouncements

Effective March 31, 2010, the Funds adopted the Financial Accounting Standards Board ASU 2010-06, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements, which are reflected in Note 7.

16.    Subsequent Events

At a Meeting of the Board of Trustees of Rydex Series Funds (the “Board”) held on August 25, 2010, the Board approved the closing and subsequent liquidation of the Global 130/30 Strategy Fund (the “Fund”). Accordingly, the Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to the shareholders of record on or about October 15, 2010 (the “Liquidation Date”). Effective on or about October 1, 2010, the Fund will be closed to new share-holders and additional purchases by existing shareholders. The planned liquidation of the Fund may cause the Fund to increase its cash holdings and deviate from its investment objective and strategies stated in the Fund’s Prospectuses.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    75

OTHER INFORMATION (Unaudited)

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 website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended December 31 is available without charge, upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Proxy Results

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds voted on whether to approve a new investment advisory agreement between Rydex Series Funds and Rydex Advisors, LLC. A description of the number of shares voted is as follows:

Fund	Shares For		Shares Against		Shares Abstained
U.S Long Short Momentum Fund		8,232,176		271,333		316,202
International Long Short Select Fund		432,838		4,132		4,201
Alternative Strategies Allocation Fund		835,869		29,477		24,853
Global 130/30 Strategy Fund		853,485		2,961		3,936
Equity Market Neutral Fund		718,597		—		557

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds voted on whether to approve a new investment sub-advisory agreement between Rydex Series Funds and Security Global Investors, LLC. A description of the number of shares voted is as follows:

Fund	Shares For		Shares Against		Shares Abstained
International Long Short Select Fund		431,964		6,384		2,823
Global 130/30 Strategy Fund		852,927		3,519		3,936
Equity Market Neutral Fund		718,598		—		557

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds also voted on whether to approve a change to a fundamental investment policy on borrowing money, consistent with applicable law. A description of the number of shares voted is as follows:

Fund	Shares For		Shares Against		Shares Abstained
U.S Long Short Momentum Fund		8,054,118		438,236		327,355
International Long Short Select Fund		431,998		5,999		3,175
Alternative Strategies Allocation Fund		806,227		40,457		43,513
Global 130/30 Strategy Fund		847,791		7,942		4,651
Equity Market Neutral Fund		718,598		—		557

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to share-holders, without charge and upon request, by calling 1-800-820-0888.

76    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and 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 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds — 1997	144
Trustee, Chairman of the	Rydex Variable Trust — 1998
Board (1940)	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds — 1993	144
Trustee (1945)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds — 1995	144
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
Werner E. Keller	Rydex Series Funds — 2005	144
Trustee (1940)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds — 2005	144
Trustee (1960)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds — 1997	144
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.
Roger Somers	Rydex Series Funds — 1993	144
Trustee (1944)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    77

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	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); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nick Bonos* Vice President and Treasurer (1963)	Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)

78    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)

*   Officers of the Funds 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 Rydex Investments.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    79

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SEPTEMBER 30, 2010

RYDEX SERIES FUNDS SEMI - ANNUAL REPORT

ASSET ALLOCATION FUNDS

ALL - ASSET CONSERVATIVE STRATEGY FUND

ALL - ASSET MODERATE STRATEGY FUND

ALL - ASSET AGGRESSIVE STRATEGY FUND

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, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS     2

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

ALL-ASSET CONSERVATIVE STRATEGY FUND   6

ALL-ASSET MODERATE STRATEGY FUND 12

ALL-ASSET AGGRESSIVE STRATEGY FUND 18

NOTES TO FINANCIAL STATEMENTS 24

OTHER INFORMATION 31

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS 32

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Uncertainty over the strength of the U.S. economic recovery and what steps the Federal Reserve might take, if any, to deal with the situation highlighted the six months ending September 30. Stocks bounced back in the July-September period from losses in the second quarter, based partly on relief that the U.S. may be dealing with a prolonged period of slow growth rather than a sharp economic contraction.

The U.S. economy has been out of recession since July 2009, according to a September report from the National Bureau of Economic Research, although employment, income expectations and existing home sales have yet to rebound. Stocks are now roughly where they were six months ago.

U.S. GDP in the second quarter was 1.7%, widely viewed to be insufficient to move the unemployment rate below its current 9.6% before the end of 2010, and significantly lower than the 3.7% GDP in the first quarter. Economists said consumers are not spending at a rate to cause companies to ramp up production, and thus hiring, with confidence. By late September, many investors were widely anticipating that the Federal Reserve, in response to tepid growth, was prepared to start another round of quantitative easing—bond purchases designed to push down long-term interest rates and kick-start private borrowing.

That prospect was welcomed by investors, who sent equities higher in September, the S&P 500^® Index* having its best September performance since 1939. For the third quarter, U.S. equity indices were up between 10-15% compared with drops of from 1-3% for the past six months. The technology sector was the main contributor to quarterly performance in the S&P 500 and the Russell 2000^® Index, as growth style stocks outperformed value in the third quarter by three percentage points. Emerging markets continued to outperform, with investors continuing to pour money into emerging markets equities funds—$50 billion so far in 2010. Emerging markets are being viewed as less risky than in the recent past, particularly since nations in that sector are not confronting the fiscal debt issues facing many countries in the developed world, and are enjoying healthy economic growth.

Corporations continued to borrow aggressively, based on investor demand for bonds and low interest rates, driving hefty investment-grade bond sales as well as sales of high-yield bonds (where issuance through the third quarter has already surpassed the previous annual record). Various bond indices were up both for the third quarter and six months, led by indices for U.S. Government bond prices and corporate high yield bonds. The expectation of quantitative easing also lifted Treasury prices, despite concerns of a building price bubble in bonds. The Bank of America U.S. Government Index was up almost 3% for the third quarter, while the yield on the benchmark 10-year note closed out September at about 2.5%, down from its 2010 peak of just above 4% in April. U.S. debt also benefited as a safe haven from resurgent worries about the economic health of European nations, including more recently Ireland and Portugal.

Investors have also been flocking to gold, driving the price of an ounce of the metal to a non-inflation-adjusted record of around $1,300. Economists said gold’s appeal was both as a hedge against further financial market instability and to assuage investors worried about the inflationary impact of additional Fed easing and massive levels of government debt. Efforts by central banks around the world to boost their economies by keeping their currencies weaker, thus helping exports, may also be contributing to the rise in the price of gold, which is attractive as an alternative store of value. Continuing economic sluggishness in the U.S. caused the dollar to weaken against the euro and yen throughout the summer, as analysts said the economies behind those currencies are in something of a standoff over which has the worst outlook. The third quarter was good for other commodities, in part a response to strong demand in China, crop failures in Russia and the potential for further monetary easing. Grain prices began to fall late

2    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

LETTER TO OUR SHAREHOLDERS (concluded)

in the quarter, as high U.S. yields were expected to offset concerns about shortages in some crops like wheat. High inventory and slack demand combined to keep the price of a barrel of oil stuck in a narrow range, although it traded toward the high end ($82) of the range by September.

In contrast to the second quarter, when worries about European sovereign debt and a possible double-dip recession in the U.S. loomed large, stocks in countries around the world had strong gains in the third quarter. The MSCI EAFE Index* was up 15% for the third quarter and the MSCI EAFE Emerging Markets Index* was up 18%. The latter index was among the best-performing indices for the past six months, up 6%. Markets in Southeast Asia, including Indonesia and Philippines, were at all-time highs, while India and South Korea also flirted with record highs. The domestic stock market of China, which this year is expected to overtake Japan as the world’s second-largest economy, pared its loss for the year, gaining 11% in the third quarter, as investors think the government may be reducing its efforts to rein in the economy. The STOXX 50^®* Index also offset year-to-date losses with a 7% rise in the third quarter, despite a weak outlook issued by the European Central Bank. The Nikkei-225 Stock Average Index*, off 11% for the year, rose 6% in September, helped in part by foreign exchange market intervention designed to hold down the value of the yen.

Rydex|SGI has a full lineup of fundamental alpha, target beta and alternative investment products designed to provide investors with the tools needed to participate in all types of markets and market environments. Contact us if you wish to learn more, and thanks for the trust you place in us.

Sincerely,

Michael Byrum

President & Chief Investment Officer

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500) – a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Nikkei-225 Stock Average Index – a price-weighted index of 225 blue-chip companies traded on the Tokyo Stock Exchange.

MSCI EAFE Index (Europe, Australasia, Far East) – a market-capitalization index designed to measure equity market performance in developed markets, excluding the U.S. & Canada. Consists in 2010 of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

MSCI EAFE Emerging Markets – a market-capitalization index designed to measure equity market performance in emerging markets. Consists in 2010 of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The STOXX 50 Index – Europe’s leading Blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The STOXX 50 Index is licensed to financial institutions to serve as underlying for a wide range of investment products such as Exchange Traded Funds (ETF), Futures and Options, and structured products worldwide.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and 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 investors understand the ongoing costs (in dollars) of investing in a 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, 2010 and ending September 30, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Certain retirement plans such as IRA, SEP, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found 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.

4    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

							Beginning		Ending		Expenses
	Expense			Fund			account value		Account Value		Paid During
	Ratio		1	Return			March 31, 2010		September 30, 2010		the Period2
Table 1. Based on actual Fund return3
All-Asset Conservative Strategy Fund
A-Class		0.00%			1.88%		$	1,000.00	$	1,018.79	$	—
C-Class		0.75%			1.53%			1,000.00		1,015.28		3.79
H-Class		0.00%			1.88%			1,000.00		1,018.77		—
All-Asset Moderate Strategy Fund
A-Class		0.00%			0.61%			1,000.00		1,006.10		—
C-Class		0.75%			0.21%			1,000.00		1,002.09		3.76
H-Class		0.00%			0.61%			1,000.00		1,006.10		—
All-Asset Aggressive Strategy Fund
A-Class		0.00%			0.22%			1,000.00		1,002.15		—
C-Class		0.75%			(0.22%	)		1,000.00		997.78		3.76
H-Class		0.00%			0.11%			1,000.00		1,001.08		—
Table 2. Based on hypothetical 5% return (before expenses)
All-Asset Conservative Strategy Fund
A-Class		0.00%			5.00%			1,000.00		1,025.07		—
C-Class		0.75%			5.00%			1,000.00		1,021.31		3.80
H-Class		0.00%			5.00%			1,000.00		1,025.07		—
All-Asset Moderate Strategy Fund
A-Class		0.00%			5.00%			1,000.00		1,025.07		—
C-Class		0.75%			5.00%			1,000.00		1,021.31		3.80
H-Class		0.00%			5.00%			1,000.00		1,025.07		—
All-Asset Aggressive Strategy Fund
A-Class		0.00%			5.00%			1,000.00		1,025.07		—
C-Class		0.75%			5.00%			1,000.00		1,021.31		3.80
H-Class		0.00%			5.00%			1,000.00		1,025.07		—

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, 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 the number of days in the current fiscal year.
3	Actual cumulative return at net asset value for the period March 31, 2010 to September 30, 2010.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    5

FUND PROFILE (Unaudited)

September 30, 2010

ALL-ASSET CONSERVATIVE STRATEGY FUND

OBJECTIVE: Primarily seeks preservation of capital and, secondarily, seeks long-term growth of capital.

Inception: June 30, 2006

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2006
C-Class	June 30, 2006
H-Class	June 30, 2006

Ten Largest Holdings (% of Total Net Assets)
Rydex|SGI Income Fund U.S. Intermediate Bond Fund	19.0	%
RSF — Rydex|SGI U.S. Long Short Momentum Fund	9.7	%
Rydex|SGI Income Fund High Yield Fund	8.0	%
RSF — Rydex|SGI Equity Market Neutral Fund	6.1	%
Rydex|SGI Equity Fund® Large Cap Value Fund	5.1	%
Rydex|SGI Equity Fund® Large Cap Concentrated
Growth Fund	5.0	%
RSF — Rydex|SGI Long Short Interest Rate Strategy Fund	5.0	%
Rydex|SGI Equity Fund® Global Fund	3.3	%
RSF — Rydex|SGI S&P 500 Fund	3.1	%
RSF — Rydex|SGI Long/Short Commodities Strategy Fund	2.8	%
Top Ten Total	67.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

RSF — Rydex Series Funds

6    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  ALL-ASSET CONSERVATIVE STRATEGY FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS†,2 — 79.6%
Rydex|SGI Income Fund U.S. Intermediate Bond Fund		695,468	$	2,969,646
RSF — Rydex|SGI U.S. Long Short Momentum Fund*		124,808		1,525,153
Rydex|SGI Income Fund High Yield Fund		98,652		1,248,940
RSF — Rydex|SGI Equity Market Neutral Fund*		42,439		951,051
Rydex|SGI Equity Fund® Large Cap Value Fund		121,565		792,602
Rydex|SGI Equity Fund® Large Cap Concentrated Growth Fund*		103,615		790,581
RSF — Rydex|SGI Long Short Interest Rate Strategy Fund*		30,726		788,110
Rydex|SGI Equity Fund® Global Fund		49,254		518,155
RSF — Rydex|SGI S&P 500 Fund		21,141		480,108
RSF — Rydex|SGI Long/Short Commodities Strategy Fund*		17,646		435,319
RSF — Rydex|SGI Managed Futures Strategy Fund*		13,474		329,565
RSF — Rydex|SGI Event Driven and Distressed Strategies Fund*		10,724		287,832
RSF — Rydex|SGI Multi-Hedge Strategies Fund*		13,594		286,295
Rydex|SGI Equity Fund® Mid Cap Growth Fund*		33,242		244,660
Rydex|SGI Equity Fund® Mid Cap Value Fund		8,214		242,724
RSF — Rydex|SGI Long Short Equity Strategy Fund*		5,341		142,394
RSF — Rydex|SGI Alternative Strategies Fund*		5,443		142,180
RSF — Rydex|SGI Real Estate Fund		4,844		125,412
Rydex|SGI Equity Fund® Small Cap Growth Fund*		6,949		85,120
Rydex|SGI Equity Fund® Small Cap Value Fund*		5,686		81,596
RSF — Rydex|SGI Commodities Strategy Fund		1,145		17,466
Total Mutual Funds (Cost $11,273,538)				12,484,909

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 — 20.4%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		3,203,953	$	3,203,953
Total Repurchase Agreement (Cost $3,203,953)				3,203,953
Total Investments — 100.0% (Cost $14,477,491)			$	15,688,862
Cash & Other Assets, Less Liabilities — 0.0%				2,710
Total Net Assets — 100.0%			$	15,691,572
			Unrealized
		CONTRACTS	GAIN (LOSS)
FUTURES CONTRACTS PURCHASED†
December 2010 MSCI EAFE Index Mini Futures Contracts (Aggregate Market Value of
Contracts $77,710)		1	$	4,279
December 2010 Ultra Long-Term U.S. Treasury Bond Futures Contracts (Aggregate Market Value of
Contracts $847,313)		6		(3,009	)
(Total Aggregate Market Value of Contracts $925,023)			$	1,270

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.
2	A-Class shares of Affiliated Funds.
	RSF — Rydex Series Funds

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    7

  ALL-ASSET CONSERVATIVE STRATEGY FUND  

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investment securities in affiliated funds, at value	$	12,484,909
Repurchase agreement, at value		3,203,953
Total investments		15,688,862
Segregated cash with broker		29,000
Receivables:
Fund shares sold		1,065
Interest from affiliated funds		16
Total assets		15,718,943
Liabilities:
Payable for:
Variation margin		327
Fund shares redeemed		21,133
Distribution and service fees		5,911
Total liabilities		27,371
Net assets	$	15,691,572
Net assets consist of:
Paid in capital		16,386,460
Undistributed net investment income		200,817
Accumulated net realized loss on sale of investments		(2,108,346	)
Net unrealized appreciation in value of investments		1,212,641
Net assets		15,691,572
A-Class:
Net assets	$	2,741,115
Capital shares outstanding		266,096
Net asset value per share		$10.30
Maximum offering price per share*		$10.81
C-Class:
Net assets	$	9,898,294
Capital shares outstanding		993,167
Net asset value per share		$9.97
H-Class:
Net assets	$	3,052,163
Capital shares outstanding		296,057
Net asset value per share		$10.31
Investments, at cost	$	11,273,538
Repurchase agreement, at cost		3,203,953
Total cost	$	14,477,491

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends	$	99,299
Interest		1,517
Total investment income		100,816
Expenses:
Distribution and Service Fees:
C-Class		35,361
Total expenses		35,361
Net investment income		65,455
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		305,125
Futures contracts		56,085
Net realized gain		361,210
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(197,353	)
Futures contracts		1,270
Net unrealized depreciation		(196,083	)
Net realized and unrealized gain		165,127
Net increase in net assets resulting from operations	$	230,582

8    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

3

  ALL-ASSET CONSERVATIVE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (decrease) in net assets from operations:
Net investment income	$	65,455		$	124,197
Net realized gain during the period on investments		361,210			639,724
Net unrealized appreciation (depreciation) during the period on investments		(196,083	)		1,448,397
Net increase in net assets resulting from operations		230,582			2,212,318
Distributions to shareholders from:1
Net investment income
A-Class		—			(46,919	)
C-Class		—			(154,231	)
H-Class		—			(57,560	)
Net realized gain
A-Class		—			(2,025	)
C-Class		—			(6,656	)
H-Class		—			(2,484	)
Total distributions to shareholders		—			(269,875	)
Capital share transactions:
Proceeds from sale of shares
A-Class		532,781			2,771,441
C-Class		2,566,110			6,862,753
H-Class		480,491			2,804,609
Redemption fees collected
A-Class		297			691
C-Class		1,002			1,905
H-Class		420			881
Distributions reinvested
A-Class		—			44,175
C-Class		—			148,390
H-Class		—			55,860
Cost of shares redeemed
A-Class		(643,235	)		(2,700,284	)
C-Class		(2,279,950	)		(3,641,473	)
H-Class		(2,143,496	)		(1,748,551	)
Net increase (decrease) from capital share transactions		(1,485,580	)		4,600,397
Net increase (decrease) in net assets		(1,254,998	)		6,542,840
Net assets:
Beginning of period		16,946,570			10,403,730
End of period	$	15,691,572		$	16,946,570
Undistributed net investment income at end of period	$	200,817		$	135,362
Capital share activity:
Shares sold
A-Class		52,804			297,040
C-Class		263,175			730,691
H-Class		47,387			285,678
Shares reinvested
A-Class		—			4,444
C-Class		—			15,345
H-Class		—			5,620
Shares redeemed
A-Class		(64,099	)		(287,337	)
C-Class		(234,585	)		(385,038	)
H-Class		(212,448	)		(179,433	)
Total capital share activity		(147,766	)		487,010

¹ For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    9

4

  ALL-ASSET CONSERVATIVE STRATEGY FUND

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.

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
A-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$10.11			$   8.64			$10.74			$10.70			$10.00
Income (loss) from investment operations:
Net investment incomec		.06			.12			.28			.26			.20
Net gain (loss) on securities (realized and unrealized)		.13			1.52			(2.08	)		.12			.56
Total from investment operations		.19			1.64			(1.80	)		.38			.76
Less distributions:
Distributions from net investment incomeh		—			(.16	)		(.14	)		(.22	)		(.09	)
Distributions from realized gainsh		—			(.01	)		(.16	)		(.14	)		—
Total distributions		—			(.17	)		(.30	)		(.36	)		(.09	)
Redemption fees collected		.00	d		.00	d		.00	d		.02			.03
Net asset value, end of period		$10.30			$10.11			$  8.64			$10.74			$10.70
Total Returne		1.88%			19.02%			(17.05%	)		3.70%			7.94%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,741			$2,805			$2,274			$4,431			$782
Ratios to average net assets:
Net investment income		1.28%			1.27%			2.84%			2.39%			2.47%	f
Total expensesg		0.00%			0.00%			0.00%			0.01%			0.01%	f
Portfolio turnover rate		63%			174%			230%			119%			105%

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
C-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.82			$8.46			$10.60			$10.65			$10.00
Income (loss) from investment operations:
Net investment incomec		.03			.05			.28			.17			.08
Net gain (loss) on securities (realized and unrealized)		.12			1.48			(2.12	)		.12			.63
Total from investment operations		.15			1.53			(1.84	)		.29			.71
Less distributions:
Distributions from net investment incomeh		—			(.16	)		(.14	)		(.22	)		(.09	)
Distributions from realized gainsh		—			(.01	)		(.16	)		(.14	)		—
Total distributions		—			(.17	)		(.30	)		(.36	)		(.09	)
Redemption fees collected		.00	d		.00	d		.00	d		.02			.03
Net asset value, end of period		$9.97			$9.82			$  8.46			$10.60			$10.65
Total Returne		1.53%			18.12%			(17.65%	)		2.86%			7.44%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,898			$9,474			$5,107			$5,074			$2,804
Ratios to average net assets:
Net investment income		0.54%			0.58%			2.87%			1.53%			1.05%	f
Total expensesg		0.75%			0.75%			0.75%			0.75%			0.76%	f
Portfolio turnover rate		63%			174%			230%			119%			105%

10    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  ALL-ASSET CONSERVATIVE STRATEGY FUND

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.

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
H-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$10.12			$   8.65			$10.75			$10.71			$10.00
Income (loss) from investment operations:
Net investment incomec		.06			.12			.31			.25			.15
Net gain (loss) on securities (realized and unrealized)		.13			1.52			(2.11	)		.13			.62
Total from investment operations		.19			1.64			(1.80	)		.38			.77
Less distributions:
Distributions from net investment incomeh		—			(.16	)		(.14	)		(.22	)		(.09	)
Distributions from realized gainsh		—			(.01	)		(.16	)		(.14	)		—
Total distributions		—			(.17	)		(.30	)		(.36	)		(.09	)
Redemption fees collected		.00	d		.00	d		.00	d		.02			.03
Net asset value, end of period		$10.31			$10.12			$  8.65			$10.75			$10.71
Total Returne		1.88%			19.00%			(17.03%	)		3.69%			8.04%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,052			$4,667			$3,022			$7,014			$3,634
Ratios to average net assets:
Net investment income		1.25%			1.28%			3.14%			2.28%			1.93%	f
Total expensesg		0.00%			0.00%			0.00%			0.01%			0.01%	f
Portfolio turnover rate		63%			174%			230%			119%			105%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: June 30, 2006.
c	Net investment income was computed using average shares outstanding throughout the period.
d	Redemption fees collected are less than $0.01 per share.
e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
f	Annualized
g	Does not include expenses of the underlying funds in which the Funds invest.
h	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    11

FUND PROFILE (Unaudited)

September 30, 2010

ALL-ASSET MODERATE STRATEGY FUND

OBJECTIVE: Primarily seeks growth of capital and, secondarily, seeks preservation of capital.

Inception: June 30, 2006

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2006
C-Class	June 30, 2006
H-Class	June 30, 2006

Ten Largest Holdings (% of Total Net Assets)
Rydex|SGI Income Fund U.S. Intermediate Bond Fund	18.3	%
RSF — Rydex|SGI U.S. Long Short Momentum Fund	14.9	%
Rydex|SGI Equity Fund® Large Cap Concentrated Growth Fund	7.9	%
Rydex|SGI Equity Fund® Large Cap Value Fund	7.8	%
Rydex|SGI Equity Fund® Global Fund	7.4	%
RSF — Rydex|SGI Equity Market Neutral Fund	6.1	%
RSF — Rydex|SGI Long Short Interest Rate Strategy Fund	3.1	%
Rydex|SGI Equity Fund® Mid Cap Growth Fund	2.5	%
Rydex|SGI Equity Fund® Mid Cap Value Fund	2.4	%
RSF — Rydex|SGI Multi-Hedge Strategies Fund	2.2	%
Top Ten Total	72.6	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

RSF — Rydex Series Funds

12    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  ALL-ASSET MODERATE STRATEGY FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS†,2 — 87.7%
Rydex|SGI Income Fund U.S. Intermediate Bond Fund		1,296,743	$	5,537,094
RSF — Rydex|SGI U.S. Long Short Momentum Fund*		369,367		4,513,663
Rydex|SGI Equity Fund® Large Cap Concentrated Growth Fund*		315,372		2,406,285
Rydex|SGI Equity Fund® Large Cap Value Fund		361,858		2,359,316
Rydex|SGI Equity Fund® Global Fund*		214,975		2,261,534
RSF — Rydex|SGI Equity Market Neutral Fund*		83,011		1,860,270
RSF — Rydex|SGI Long Short Interest Rate Strategy Fund*		36,961		948,057
Rydex|SGI Equity Fund® Mid Cap Growth Fund*		103,861		764,415
Rydex|SGI Equity Fund® Mid Cap Value Fund		25,133		742,671
RSF — Rydex|SGI Multi-Hedge Strategies Fund*		31,998		673,874
Rydex|SGI Income Fund High Yield Fund		49,679		628,939
RSF — Rydex|SGI Event Driven and Distressed Strategies Fund*		21,295		571,558
RSF — Rydex|SGI Real Estate Fund		19,104		494,593
RSF — Rydex|SGI Long/Short Commodities Strategy Fund*		19,591		483,313
RSF — Rydex|SGI Managed Futures Strategy Fund*		15,577		381,014
Rydex|SGI Equity Fund® Small Cap Growth Fund*		27,415		335,835
Rydex|SGI Equity Fund® Small Cap Value Fund*		22,600		324,316
RSF — Rydex|SGI Long Short Equity Strategy Fund*		10,626		283,292
RSF — Rydex|SGI Alternative Strategies Fund*		10,829		282,859
RSF — Rydex|SGI S&P 500 Fund		12,379		281,129
RSF — Rydex|SGI Nova Fund		15,071		280,013
RSF — Rydex|SGI Commodities Strategy Fund		16,749		255,593
Total Mutual Funds (Cost $23,657,016)				26,669,633

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 — 12.2%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10		$3,704,956	$	3,704,956
Total Repurchase Agreement (Cost $3,704,956)				3,704,956
Total Investments — 99.9% (Cost $27,361,972)			$	30,374,589
Cash & Other Assets, Less Liabilities — 0.1%				30,809
Total Net Assets — 100.0%			$	30,405,398
			Unrealized
		CONTRACTS	GAIN (LOSS)
FUTURE CONTRACTS PURCHASED†
December 2010 MSCI EAFE Index Mini Futures Contracts (Aggregate Market Value of Contracts $155,420)		2	$	8,557
December 2010 Ultra Long-Term U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $1,129,750)		8		(4,012	)
(Total Aggregate Market Value of Contracts $1,285,170)			$	4,545

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.
2	A-Class shares of Affiliated Funds.
	RSF — Rydex Series Funds

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    13

   ALL-ASSET MODERATE STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investment securities in affiliated funds, at value	$	26,669,633
Repurchase agreement, at value		3,704,956
Total investments		30,374,589
Segregated cash with broker		44,000
Receivables:
Fund shares sold		594
Interest from affiliated funds		18
Total assets		30,419,201
Liabilities:
Payable for:
Variation margin		1,030
Fund shares redeemed		2,145
Distribution and service fees		10,628
Total liabilities		13,803
Net Assets	$	30,405,398
Net assets consist of:
Paid in capital		35,941,334
Undistributed net investment income		268,981
Accumulated net realized loss on sale of investments		(8,822,079	)
Net unrealized appreciation in value of investments		3,017,162
Net assets		30,405,398
A-Class:
Net assets	$	8,493,549
Capital shares outstanding		858,217
Net asset value per share		$9.90
Maximum offering price per share*		$10.39
C-Class:
Net assets	$	17,252,050
Capital shares outstanding		1,801,012
Net asset value per share		$9.58
H-Class:
Net assets	$	4,659,799
Capital shares outstanding		470,743
Net asset value per share		$9.90
Investments, at cost	$	23,657,016
Repurchase agreement, at cost		3,704,956
Total cost	$	27,361,972

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends	$	122,083
Interest		1,131
Total investment income		123,214
Expenses:
Distribution and Service Fees:
C-Class		69,301
Total expenses		69,301
Net investment income		53,913
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investment securities		903,960
Futures contracts		71,352
Net realized gain		975,312
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(1,094,964	)
Futures contracts		4,545
Net unrealized depreciation		(1,090,419	)
Net realized and unrealized loss		(115,107	)
Net decrease in net assets resulting from operations	$	(61,194	)

* Net asset value adjusted for the maximum sales charge of 4.75%
of offering price, calculated NAV/(1-4.75%).

14    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ALL-ASSET MODERATE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income	$	53,913		$	187,448
Net realized gain during the period on investments		975,312			1,774,617
Net unrealized appreciation (depreciation) during the period on investments		(1,090,419	)		5,927,044
Net increase (decrease) in net assets resulting from operations		(61,194	)		7,889,109
DISTRIBUTIONS TO SHAREHOLDERS FROM:1
Net investment income
A-Class		—			(181,973	)
C-Class		—			(353,869	)
H-Class		—			(114,562	)
Net realized gain
A-Class		—			(7,728	)
C-Class		—			(15,027	)
H-Class		—			(4,865	)
Total distributions to shareholders		—			(678,024	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares
A-Class		659,422			6,093,317
C-Class		2,053,290			6,542,120
H-Class		498,244			5,480,540
Redemption fees collected
A-Class		551			6,784
C-Class		1,160			13,624
H-Class		371			4,711
Distributions reinvested
A-Class		—			163,536
C-Class		—			349,382
H-Class		—			112,274
Cost of shares redeemed
A-Class		(2,081,597	)		(6,164,594	)
C-Class		(4,334,723	)		(9,138,829	)
H-Class		(3,504,400	)		(5,569,956	)
Net decrease from capital share transactions		(6,707,682	)		(2,107,091	)
Net increase (decrease) in net assets		(6,768,876	)		5,103,994
NET ASSETS:
Beginning of period		37,174,274			32,070,280
End of period	$	30,405,398		$	37,174,274
Undistributed net investment income at end of period	$	268,981		$	215,068
CAPITAL SHARE ACTIVITY:
Shares sold
A-Class		66,652			668,414
C-Class		216,645			739,428
H-Class		51,110			574,958
Shares reinvested
A-Class		—			16,964
C-Class		—			37,241
H-Class		—			11,622
Shares redeemed
A-Class		(215,614	)		(674,704	)
C-Class		(467,285	)		(1,026,637	)
H-Class		(358,832	)		(599,341	)
Total capital share activity		(707,324	)		(252,055	)

¹ For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    15

  ALL-ASSET MODERATE STRATEGY FUND

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.

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
A-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.84			$7.93			$10.18			$10.56			$10.00
Income (loss) from investment operations:
Net investment incomec		.04			.09			.20			.17			.18
Net gain (loss) on securities (realized and unrealized)		.02			1.99			(2.31	)		(.24	)		.79
Total from investment operations		.06			2.08			(2.11	)		(.07	)		.97
Less distributions:
Distributions from net investment incomei		—			(.17	)		(.02	)		(.12	)		(.10	)
Distributions from realized gainsi		—			(.01	)		(.12	)		(.19	)		(.32	)
Total distributions		—			(.18	)		(.14	)		(.31	)		(.42	)
Redemption fees collected		.00	d		.01			.00	d		.00	d		.01
Net asset value, end of period		$9.90			$9.84			$  7.93			$10.18			$10.56
Total Returne		0.61%			26.34%			(20.85%	)		(0.75%	)		9.90%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,494			$9,907			$7,907			$10,214			$9,719
Ratios to average net assets:
Net investment income		0.75%			0.94%			2.14%			1.58%			2.26%	f
Total expensesh		0.00%			0.00%			0.00%			0.01%			0.00%	f
Portfolio turnover rate		59%			170%			220%			125%			66%
	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
C-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.56			$7.77			$10.05			$10.50			$10.00
Income (loss) from investment operations:
Net investment income (loss)c		(—	)g		.02			.11			.10			.11
Net gain (loss) on securities (realized and unrealized)		.02			1.94			(2.25	)		(.24	)		.80
Total from investment operations		.02			1.96			(2.14	)		(.14	)		.91
Less distributions:
Distributions from net investment incomei		—			(.17	)		(.02	)		(.12	)		(.10	)
Distributions from realized gainsi		—			(.01	)		(.12	)		(.19	)		(.32	)
Total distributions		—			(.18	)		(.14	)		(.31	)		(.42	)
Redemption fees collected		.00	d		.01			.00	d		.00	d		.01
Net asset value, end of period		$9.58			$9.56			$  7.77			$10.05			$10.50
Total Returne		0.21%			25.33%			(21.42%	)		(1.43%	)		9.29%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$17,252			$19,607			$17,885			$30,282			$18,551
Ratios to average net assets:
Net investment income (loss)		(0.00%	)		0.17%			1.22%			0.90%			1.34%	f
Total expensesh		0.75%			0.75%			0.75%			0.76%			0.75%	f
Portfolio turnover rate		59%			170%			220%			125%			66%

16    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  ALL-ASSET MODERATE STRATEGY FUND

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.

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
H-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.84			$7.94			$10.18			$10.56			$10.00
Income (loss) from investment operations:
Net investment incomec		.04			.08			.16			.13			.18
Net gain (loss) on securities (realized and unrealized)		.02			1.99			(2.26	)		(.20	)		.79
Total from investment operations		.06			2.07			(2.10	)		(.07	)		.97
Less distributions:
Distributions from net investment incomei		—			(.17	)		(.02	)		(.12	)		(.10	)
Distributions from realized gainsi		—			(.01	)		(.12	)		(.19	)		(.32	)
Total distributions		—			(.18	)		(.14	)		(.31	)		(.42	)
Redemption fees collected		.00	d		.01			.00	d		.00	d		.01
Net asset value, end of period		$9.90			$9.84			$  7.94			$10.18			$10.56
Total Returne		0.61%			26.18%			(20.75%	)		(0.75%	)		9.90%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,660			$7,660			$6,279			$11,359			$8,623
Ratios to average net assets:
Net investment income		0.73%			0.92%			1.73%			1.22%			2.32%	f
Total expensesh		0.00%			0.00%			0.00%			0.01%			0.00%	f
Portfolio turnover rate		59%			170%			220%			125%			66%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: June 30, 2006.
c	Net investment income was computed using average shares outstanding throughout the period.
d	Redemption fees collected are less than $0.01 per share.
e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
f	Annualized
g	Net investment loss is less than $0.01 per share.
h	Does not include expenses of the underlying funds in which the Funds invest.
i	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    17

FUND PROFILE (Unaudited)

September 30, 2010

ALL-ASSET AGGRESSIVE STRATEGY FUND

OBJECTIVE: Seeks growth of capital.

Inception: June 30, 2006

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 30, 2006
C-Class	June 30, 2006
H-Class	June 30, 2006

Ten Largest Holdings (% of Total Net Assets)
RSF — Rydex|SGI U.S. Long Short Momentum Fund	17.0	%
Rydex|SGI Equity Fund® Global Fund	11.2	%
Rydex|SGI Equity Fund® Large Cap Value Fund	10.2	%
Rydex|SGI Equity Fund® Large Cap Concentrated Growth Fund	10.1	%
Rydex|SGI Income Fund U.S. Intermediate Bond Fund	9.8	%
RSF — Rydex|SGI Equity Market Neutral Fund	6.2	%
RSF — Rydex|SGI Long Short Interest Rate Strategy Fund	3.4	%
Rydex|SGI Equity Fund® Mid Cap Growth Fund	3.1	%
Rydex|SGI Equity Fund® Mid Cap Value Fund	3.1	%
RSF — Rydex|SGI Multi-Hedge Strategies Fund	2.5	%
Top Ten Total	76.6	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

RSF — Rydex Series Funds

18    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2010

  ALL-ASSET AGGRESSIVE STRATEGY FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS†,2 — 93.2%
RSF — Rydex|SGI U.S. Long Short Momentum Fund*		216,343	$	2,643,707
Rydex|SGI Equity Fund® Global Fund		166,664		1,753,304
Rydex|SGI Equity Fund® Large Cap Value Fund		241,214		1,572,716
Rydex|SGI Equity Fund® Large Cap Concentrated Growth Fund*		205,382		1,567,063
Rydex|SGI Income Fund U.S. Intermediate Bond Fund		355,143		1,516,459
RSF — Rydex|SGI Equity Market Neutral Fund*		42,562		953,818
RSF — Rydex|SGI Long Short Interest Rate Strategy Fund*		20,383		522,823
Rydex|SGI Equity Fund® Mid Cap Growth Fund*		65,847		484,632
Rydex|SGI Equity Fund® Mid Cap Value Fund		16,155		477,379
RSF — Rydex|SGI Multi-Hedge Strategies Fund*		18,635		392,452
RSF — Rydex|SGI Nova Fund		19,973		371,090
RSF — Rydex|SGI S&P 500 Fund		14,181		322,049
RSF — Rydex|SGI Real Estate Fund		11,720		303,435
RSF — Rydex|SGI Event Driven and Distressed Strategies Fund*		11,227		301,341
Rydex|SGI Equity Fund® Small Cap Growth Fund*		20,040		245,486
Rydex|SGI Equity Fund® Small Cap Value Fund*		16,470		236,345
RSF — Rydex|SGI Long/Short Commodities Strategy Fund*		6,608		163,011
RSF — Rydex|SGI Managed Futures Strategy Fund*		6,313		154,409
RSF — Rydex|SGI Long Short Equity Strategy Fund*		5,611		149,576
RSF — Rydex|SGI Alternative Strategies Fund*		5,703		148,960
RSF — Rydex|SGI Commodities Strategy Fund		9,642		147,138
Total Mutual Funds (Cost $12,881,809)				14,427,193

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 — 6.7%
Credit Suisse Group issued 09/30/10 at 0.18% due 10/01/10	$	1,029,685	$	1,029,685
Total Repurchase Agreement (Cost $1,029,685)				1,029,685
Total Investments — 99.9% (Cost $13,911,494)			$	15,456,878
Cash & Other Assets, Less Liabilities — 0.1%				14,597
Total Net Assets — 100.0%			$	15,471,475
			Unrealized
		CONTRACTS	GAIN
FUTURE CONTRACTS PURCHASED†
December 2010 MSCI EAFE Index Mini Futures Contracts (Aggregate Market Value of
Contracts $621,680)		8	$	34,230

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.
2	A-Class shares of Affiliated Funds.
	RSF — Rydex Series Funds

See Notes to Financial Statements.      THE RYDEX |SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    19

  ALL-ASSET AGGRESSIVE STRATEGY FUND

STATEMENT OF ASSETS
AND LIABILITIES (Unaudited)

September 30, 2010

Assets:
Investment securities in affiliated funds, at value	$	14,427,193
Repurchase agreement, at value		1,029,685
Total investments		15,456,878
Segregated cash with broker		64,000
Receivables:
Fund shares sold		8,136
Interest from affiliated funds		5
Total assets		15,529,019
Liabilities:
Payable for:
Variation margin		7,120
Fund shares redeemed		46,588
Distribution and service fees		3,836
Total liabilities		57,544
Net assets	$	15,471,475
Net assets consist of:
Paid in capital		18,130,396
Undistributed net investment income		59,446
Accumulated net realized loss on sale of investments		(4,297,981	)
Net unrealized appreciation in value of investments		1,579,614
Net assets		15,471,475
A-Class:
Net assets	$	6,430,407
Capital shares outstanding		690,858
Net asset value per share		$9.31
Maximum offering price per share*		$9.77
C-Class:
Net assets	$	6,339,655
Capital shares outstanding		705,202
Net asset value per share		$8.99
H-Class:
Net assets	$	2,701,413
Capital shares outstanding		290,344
Net asset value per share		$9.30
Investments, at cost	$	12,881,809
Repurchase agreement, at cost		1,029,685
Total cost	$	13,911,494

STATEMENT OF
OPERATIONS (Unaudited)

Period Ended September 30, 2010

Investment Income:
Dividends	$	27,627
Interest		423
Total investment income		28,050
Expenses:
Distribution and Service Fees:
C-Class		24,499
Total expenses		24,499
Net investment income		3,551
Net Realized and Unrealized Gain (loss):
Net realized gain (loss) during the period on:
Investment securities		224,583
Futures contracts		(194	)
Net realized gain		224,389
Net unrealized appreciation (depreciation) during the period on:
Investment securities		(329,068	)
Futures contracts		34,230
Net unrealized depreciation		(294,838	)
Net realized and unrealized loss		(70,449	)
Net decrease in net assets resulting from operations	$	(66,898	)

* Net asset value adjusted for the maximum sales charge of 4.75%
of offering price, calculated NAV/(1-4.75%).

20    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT             See Notes to Financial Statements.

  ALL-ASSET AGGRESSIVE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended			Year
	September 30,			Ended
	2010			March 31,
	(Unaudited)			2010
Increase (decrease) in net assets from operations:
Net investment income	$	3,551		$	39,936
Net realized gain during the period on investments		224,389			1,891,926
Net unrealized appreciation (depreciation) during the period on investments		(294,838	)		2,476,505
Net increase (decrease) in net assets resulting from operations		(66,898	)		4,408,367
Distributions to shareholders from:1
Net investment income
A-Class		—			(70,250	)
C-Class		—			(70,882	)
H-Class		—			(37,616	)
Net realized gain
A-Class		—			(6,272	)
C-Class		—			(6,329	)
H-Class		—			(3,358	)
Total distributions to shareholders		—			(194,707	)
Capital share transactions:
Proceeds from sale of shares
A-Class		587,950			2,124,848
C-Class		528,543			2,646,769
H-Class		543,352			1,506,274
Redemption fees collected
A-Class		121			796
C-Class		128			776
H-Class		62			436
Distributions reinvested
A-Class		—			45,349
C-Class		—			73,772
H-Class		—			40,849
Cost of shares redeemed
A-Class		(618,881	)		(2,799,013	)
C-Class		(1,221,299	)		(1,875,260	)
H-Class		(1,432,010	)		(2,124,552	)
Net decrease from capital share transactions		(1,612,034	)		(358,956	)
Net increase (decrease) in net assets		(1,678,932	)		3,854,704
Net assets:
Beginning of period		17,150,407			13,295,703
End of period	$	15,471,475		$	17,150,407
Undistributed net investment income at end of period	$	59,446		$	55,895
Capital share activity:
Shares sold
A-Class		64,004			243,697
C-Class		59,972			316,405
H-Class		59,420			176,531
Shares reinvested
A-Class		—			5,005
C-Class		—			8,383
H-Class		—			4,509
Shares redeemed
A-Class		(68,224	)		(325,847	)
C-Class		(138,932	)		(225,023	)
H-Class		(160,011	)		(254,656	)
Total capital share activity		(183,771	)		(50,996	)

¹ For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

See Notes to Financial Statements.      THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    21

  ALL-ASSET AGGRESSIVE STRATEGY FUND

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.

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
A-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.29			$6.98			$9.69			$10.28			$10.00
Income (loss) from investment operations:
Net investment incomec		.02			.05			.12			.11			.24
Net gain (loss) on securities (realized and unrealized)		.00			2.37			(2.60	)		(.48	)		.77
Total from investment operations		.02			2.42			(2.48	)		(.37	)		1.01
Less distributions:
Distributions from net investment incomeh		—			(.10	)		(.22	)		(.06	)		(.10	)
Distributions from realized gainsh		—			(.01	)		(.01	)		(.16	)		(.64	)
Total distributions		—			(.11	)		(.23	)		(.22	)		(.74	)
Redemption fees collected		.00	d		.00	d		.00	d		.00	d		.01
Net asset value, end of period		$9.31			$9.29			$6.98			$  9.69			$10.28
Total Returne		0.22%			34.67%			(25.81%	)		(3.77%	)		10.37%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,430			$6,457			$5,389			$8,596			$13,854
Ratios to average net assets:
Net investment income		0.35%			0.55%			1.40%			1.01%			3.11%	f
Total expensesg		0.00%			0.00%			0.02%			0.01%			0.00%	f
Portfolio turnover rate		68%			185%			278%			120%			92%

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
C-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.01			$6.82			$9.56			$10.22			$10.00
Income (loss) from investment operations:
Net investment income (loss)c		(.02	)		(.02	)		.05			.06			(.03	)
Net gain (loss) on securities (realized and unrealized)		.00			2.32			(2.56	)		(.50	)		.98
Total from investment operations		(.02	)		2.30			(2.51	)		(.44	)		.95
Less distributions:
Distributions from net investment incomeh		—			(.10	)		(.22	)		(.06	)		(.10	)
Distributions from realized gainsh		—			(.01	)		(.01	)		(.16	)		(.64	)
Total distributions		—			(.11	)		(.23	)		(.22	)		(.74	)
Redemption fees collected		.00	d		.00	d		.00	d		.00	d		.01
Net asset value, end of period		$8.99			$9.01			$6.82			$  9.56			$10.22
Total Returne		(0.22%	)		33.72%			(26.48%	)		(4.48%	)		9.76%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,340			$7,063			$4,667			$6,178			$6,537
Ratios to average net assets:
Net investment income (loss)		(0.40%	)		(0.21%	)		0.59%			0.60%			(0.34%	)f
Total expensesg		0.75%			0.75%			0.77%			0.76%			0.75%	f
Portfolio turnover rate		68%			185%			278%			120%			92%

22    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

  ALL-ASSET AGGRESSIVE STRATEGY FUND

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.

	Period												Period
	Ended			Year Ended			Year Ended			Year Ended			Ended
	September 30,			March 31,			March 31,			March 31,			March 31
H-Class	2010a			2010			2009			2008			2007b
Per Share Data
Net asset value, beginning of period		$9.29			$6.97			$9.69			$10.29			$10.00
Income (loss) from investment operations:
Net investment incomec		.02			.04			.11			.08			.15
Net gain (loss) on securities (realized and unrealized)		(.01	)		2.39			(2.60	)		(.46	)		.87
Total from investment operations		.01			2.43			(2.49	)		(.38	)		1.02
Less distributions:
Distributions from net investment incomeh		—			(.10	)		(.22	)		(.06	)		(.10	)
Distributions from realized gainsh		—			(.01	)		(.01	)		(.16	)		(.64	)
Total distributions		—			(.11	)		(.23	)		(.22	)		(.74	)
Redemption fees collected		.00	d		.00	d		.00	d		.00	d		.01
Net asset value, end of period		$9.30			$9.29			$6.97			$  9.69			$10.29
Total Returne		0.11%			34.86%			(25.92%	)		(3.87%	)		10.84%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,701			$3,630			$3,240			$4,447			$6,486
Ratios to average net assets:
Net investment income		0.35%			0.53%			1.22%			0.80%			1.94%	f
Total expensesg		0.00%			0.00%			0.02%			0.01%			0.00%	f
Portfolio turnover rate		68%			185%			278%			120%			92%

a	Unaudited figures for the period ended September 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: June 30, 2006.
c	Net investment income was computed using average shares outstanding throughout the period.
d	Redemption fees collected are less than $0.01 per share.
e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
f	Annualized
g	Does not include expenses of the underlying funds in which the Funds invest.
h	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    23

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1.    Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company. The Trust offers eight separate classes of shares, Investor Class shares, Investor2 Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Institutional Class shares, and Y-Class shares. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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. A-Class shares are sold at net asset value, plus the applicable front-end sales charge, except for U.S. Government Money Market Fund. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At September 30, 2010, the Trust consisted of fifty-eight separate Funds. This report covers the Asset Allocation Funds (the “Funds”), while the other Funds are contained in separate reports.

Each Fund is a “fund of funds,” which means that it seeks to achieve its investment objective by investing primarily in a combination of funds within the same group of affiliated investment companies (the SGI Funds and the Rydex family of mutual funds) and exchange-traded funds (“ETFs”) (collectively, the “underlying funds”) instead of in individual securities. The SGI Funds are advised by Security Investors, LLC and Security Global Investors, LLC (collectively, “Security Global Investors”). Rydex Investments and Security Global Investors are subsidiaries of Security Benefit Corporation.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

Significant Accounting Policies

The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. All time references are based on Eastern Time.

A. Open-end investment companies are valued at their Net Asset Value per share (“NAV”) as of the close of business, usually 4:00 p.m. on the valuation date. ETFs and closed-end investment companies are valued at the last quoted sales price. Debt securities with a maturity greater than 60 days at acquisition are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a debt security is valued at the reported bid price, at the close of business. Short-term debt securities with a maturity of 60 days at acquisition or less and repurchase agreements are valued at amortized cost, which approximates market 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. Taxable non-cash dividends are recorded as dividend income. 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 and service fees related to C-Class shares, are charged directly to such class. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

D. Distributions of net investment income and net realized capital gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

E. The Funds may also purchase American Depository Receipts, U.S. Government securities, Commercial Paper and enter into repurchase agreements.

F. Throughout the normal course of business, the Funds and the underlying funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The maximum exposure under these arrangements is unknown, as this would involve future claims that may be made that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

24    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

2.    Financial Instruments

As part of their investment strategies, the underlying funds may utilize short sales and a variety of derivative instruments including options, futures, options on futures, structured notes, and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts reflected in the underlying funds’ NAVs.

A short sale is a transaction in which an underlying fund sells an equity or fixed income security it does not own. If the security sold short goes down in price between the time the underlying fund sells the security and closes its short position, that underlying fund will realize a gain on the transaction. Conversely, if the security goes up in price during the period, that underlying fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

The risk associated with purchasing options is limited to the premium originally paid. The risk in writing a covered call option is that an underlying 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 an underlying 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 an underlying 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.

There are several risks in connection with the use of futures contracts. 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 an underlying fund may not be able to enter into a closing transaction because of an illiquid secondary market.

There are several risks associated with the use of structured notes. Structured securities are leveraged, thereby providing an exposure to the underlying benchmark greater than the face amount and increasing the volatility of each note relative to the change in the underlying linked financial instrument. A highly liquid secondary market may not exist for the structured notes an underlying fund invests in which may make it difficult for that underlying fund to sell the structured notes it holds at an acceptable price or to accurately value them. In addition, structured notes are subject to the risk that the counterparty to the instrument, or issuer, might not pay interest when due or repay principal at maturity of the obligation. Although the Trust will not invest in any structured notes

unless Rydex Investments believes that the issuer is creditworthy, an underlying fund does bear the risk of loss of the amount expected to be received in the event of the default or bankruptcy of the issuer.

There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions. Swap agreements may be considered to be illiquid. Although the Trust will not enter into any swap agreement unless Rydex Investments believes that the other party to the transaction is creditworthy, the underlying funds 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.

There are several risks associated with credit default swaps. Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor,” receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return, the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. An underlying fund may enter into credit default swaps in which that underlying fund or its counterparty act as guarantors. By acting as the guarantor of a swap, that underlying fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In conjunction with the use of short sales, options, futures, options on futures, and swap agreements, the underlying funds are required to maintain collateral in various forms. The underlying funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each underlying fund. The risks inherent in the use of short sales, options, futures contracts, options on futures contracts, and swap agreements include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    25

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

3.    Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.

Certain Funds seek to gain exposure to their respective benchmarks by investing in currency, and financial-linked derivative instruments, including futures and options on futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Fund’s
Fund	net assets on a daily basis
All-Asset Conservative Strategy Fund		6%
All-Asset Moderate Strategy Fund		4%
All-Asset Aggressive Strategy Fund		4%

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2010:

	Location on the Statements of Assets and Liabilities
Derivative Investments Type	Asset Derivatives	Liability Derivatives
Interest rate contracts	Variation Margin	Variation Margin
Equity contracts	Variation Margin	Variation Margin

The following table sets forth the fair value of the Fund’s derivative contracts by primary risk exposure as of September 30, 2010:

	Asset Derivative Investments Value
	Futures		Futures
	Equity		Interest Rate		Total Value at
Fund	Contracts*		Contracts*		September 30, 2010
All-Asset Conservative Strategy Fund	$	4,279	$	—	$	4,279
All-Asset Moderate Strategy Fund		8,557		—		8,557
All-Asset Aggressive Strategy Fund		34,230		—		34,230

	Liability Derivative Investments Value
	Futures		Futures
	Equity		Interest Rate			Total Value at
Fund	Contracts*		Contracts*			September 30, 2010
All-Asset Conservative Strategy Fund	$	—	$	(3,009	)	$	(3,009	)
All-Asset Moderate Strategy Fund		—		(4,012	)		(4,012	)
All-Asset Aggressive Strategy Fund		—		—			—

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments.
Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

26    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations as of September 30, 2010:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Interest rate contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures contracts
Equity contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures contracts

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of September 30, 2010:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
	Futures			Futures
	Equity			Interest Rate		Total Value at
Fund	Contracts			Contracts		September 30, 2010
All-Asset Conservative Strategy Fund	$	(1,048	)	$	57,133	$	56,085
All-Asset Moderate Strategy Fund		(2,096	)		73,448		71,352
All-Asset Aggressive Strategy Fund		(8,382	)		8,188		(194	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations
	Futures		Futures
	Equity		Interest Rate			Total Value at
Fund	Contracts		Contracts			September 30, 2010
All-Asset Conservative Strategy Fund	$	4,279	$	(3,009	)	$	1,270
All-Asset Moderate Strategy Fund		8,557		(4,012	)		4,545
All-Asset Aggressive Strategy Fund		34,230		—			34,230

4.    Fees And Other Transactions With Affiliates

Rydex Investments manages the investment and reinvestment of the assets of each of the Funds in accordance with the investment objectives, policies, and limitations of each Fund, however, the Funds do not pay Rydex Investments a management fee. As part of its agreement with the Trust, Rydex Investments will pay all expenses of the Funds, including the cost of transfer agency, fund administration, audit and other services, excluding interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the execution of portfolio transactions, short dividend expenses, and extraordinary expenses.

Each Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other expenses) of the underlying funds in which the Fund invests.

Rydex Investments provides transfer agent, accounting services and administrative services to the Funds. However, the related fees are paid by Rydex Investments, as noted above.

The Funds have not adopted a Distribution Plan or a Shareholder Services Plan with respect to A-Class shares and H-Class shares. Instead, the Funds invest in underlying funds that have a distribution plan that allows the underlying funds to pay distribution fees to the Distributor and other firms that provide distribution services (“Service Providers”). The underlying funds 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 under the 1940 Act, as amended. If a Service Provider provides distribution or shareholder services, the Distributor will, in turn, pay the Service Provider for the services it provides at an annual rate not to exceed 0.25% of the average daily net assets of a Fund.

The Funds have adopted a Distribution and Shareholder Services Plan applicable to their C-Class shares that allows the Funds to pay annual distribution and service fees of 0.75% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates the shareholder’s financial advisor for providing ongoing services to the shareholder. The annual 0.50% distribution fee reimburses the Distributor for paying the shareholder’s financial advisor an ongoing sales commission. The Distributor advances the first year’s service and distribution fees to the financial advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    27

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

For the year ended September 30, 2010, the Distributor retained sales charges of $321,536 relating to sales of A-Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

5.    Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.

Management has analyzed the Funds’ tax positions taken on Federal income tax returns for all open tax years (fiscal years 2007-2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for 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, will result in reclassifications. This may include net operating losses not utilized during the current period and capital loss carryforward expired. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

The Funds’ tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.

At September 30, 2010, 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
			Unrealized		Unrealized			Unrealized
Fund	Tax Cost		Gain		Loss			Gain
All-Asset Conservative Strategy Fund	$	14,593,743	$	1,159,610	$	(64,491	)	$	1,095,119
All-Asset Moderate Strategy Fund		28,040,775		2,478,073		(144,259	)		2,333,814
All-Asset Aggressive Strategy Fund		14,452,031		1,089,437		(84,590	)		1,004,847

6.    Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund. Repurchase Agreements are valued at amortized cost, which approximates market value.

The repurchase agreements executed by the joint account and outstanding at September 30, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.18% due 10/01/10	$	116,949,665	$	116,949,665	$	116,950,250
				$	116,949,665	$	116,950,250

At September 30, 2010, the collateral for the repurchase agreements in the joint account was as follows:

Security Type	Maturity Dates	Range of Rates	Par Value		Market Value
U.S. Treasury Bills	09/22/11	0.00%	$	119,588,900	$	119,288,732
					$	119,288,732

28    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are 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 Funds seek to assert their rights. The Funds’ 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 Funds enter into repurchase agreements to evaluate potential risks.

7.    Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1	—	quoted prices in active markets for identical securities.
Level 2	—	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3	—	significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2010:

	Level 1		Level 1			Level 2		Level 2
	Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	Total
Assets
All-Asset Conservative Strategy Fund	$	12,484,909	$	1,270		$	3,203,953	$	—		$	15,690,132
All-Asset Moderate Strategy Fund		26,669,633		4,545			3,704,956		—			30,379,134
All-Asset Aggressive Strategy Fund		14,427,193		34,230			1,029,685		—			15,491,108
Liabilities
All-Asset Conservative Strategy Fund		—		—			—		—			—
All-Asset Moderate Strategy Fund		—		—			—		—			—
All-Asset Aggressive Strategy Fund		—		—			—		—			—

* Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective March 31, 2010. This update applies to the Funds’ disclosures about transfers in and out of all Levels of the fair value hierarchy on a gross basis and the reasons for the transfers, as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy. Effective interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

At the period ended September 30, 2010, there were no securities transferred from Level 1 to Level 2 or from Level 2 to Level 1.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    29

NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)

8.    Securities Transactions

For the period ended September 30, 2010, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	All-Asset		All-Asset		All-Asset
	Conservative Strategy Fund		Moderate Strategy Fund		Aggressive Strategy Fund
Purchases	$	8,798,686	$	18,636,588	$	10,513,180
Sales	$	11,725,223	$	28,096,938	$	12,644,932

9.     Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 331/3% of a Fund’s net assets, 331/3% of a Fund’s assets held by the Custodian or 331/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the year ended September 30, 2010, the Funds did not have any outstanding borrowings under this agreement.

10.    Redemption Fees

Effective September 13, 2010, the 1% short-term trading fee that applies to the firm’s alternative suite of mutual funds was removed. Rydex Investments believes the removal of the fee is in the best interest of current shareholders. It is important to note the funds are not intended for short term trading and we will continue to monitor for harmful trading activity in the funds. To that end, Rydex Investments is not actively promoting the elimination of the redemption fee to clients via written communications as we don’t want to encourage short-term trading on these products from active trading clients, which could potentially damage long-term performance for other shareholders. A supplement to the prospectuses was filed on September 13, 2010.

11.    Guggenheim Acquisition

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors, LLC (formerly PADCO Advisors, Inc.), the Funds’ investment adviser (the “Investment Adviser”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Adviser (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction is not expected to result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreements with the Investment Advisers and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

12.    Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

13.    New Accounting Pronouncements

Effective March 31, 2010, the Funds adopted the Financial Accounting Standards Board ASU 2010-06, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements, which are reflected in Note 7.

30    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)

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 800.820.0888.

This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended September 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Proxy Results

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds voted on whether to approve a new investment advisory agreement between Rydex Series Funds and Rydex Advisors, LLC. A description of the number of shares voted is as follows:

	Shares		Shares		Shares
Fund	For		Against		Abstained
All-Asset Conservative Strategy Fund		879,539		32,958		93,398
All-Asset Moderate Strategy Fund		1,957,160		101,501		153,065
All-Asset Aggressive Strategy Fund		844,883		16,899		118,241

At a special meeting of shareholders held on June 18, 2010, the shareholders of the Funds also voted on whether to approve a change to a fundamental investment policy on borrowing money, consistent with applicable law. A description of the number of shares voted is as follows:

	Shares		Shares		Shares
Fund	For		Against		Abstained
All-Asset Conservative Strategy Fund		860,823		47,373		97,698
All-Asset Moderate Strategy Fund		1,930,207		127,388		154,130
All-Asset Aggressive Strategy Fund		835,094		18,248		126,681

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    31

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and 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.

INDEPENDENT TRUSTEES

Name, Position and	Length of Service As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds – 1997	144
Trustee, Chairman of the	Rydex Variable Trust – 1998
Board (1940)	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds – 1993	144
Trustee (1945)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds – 1995	144
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
Werner E. Keller	Rydex Series Funds – 2005	144
Trustee (1940)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	144
Trustee (1960)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds – 1997	144
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.
Roger Somers	Rydex Series Funds – 1993	144
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

32    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS
Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	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); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nick Bonos* Vice President and Treasurer (1963)	Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)

THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT    |    33

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS — concluded
Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

* Officers of the Funds 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 Rydex Investments.

34    |    THE RYDEX | SGI SERIES FUNDS SEMI-ANNUAL REPORT

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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. 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. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable

Item 11. Controls and Procedures.

(a) Based on their evaluation on December 6, 2010, 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 Advisors, LLC (“RA” or the “Advisor”), the investment advisor and manager of the Trust, or Rydex Distributors, LLC. (“RD”), which acts as distributor for the

Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust or RA on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report.

There was no fraud, whether or not material, involving officers or employees of RA, 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-3(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 or RA’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) 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.

Item 12. 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/ Richard M. Goldman
	Richard M. Goldman, President
Date December 6, 2010

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/ Richard M. Goldman                Richard M. Goldman, President
Date December 6, 2010
By (Signature and Title)*	/s/ Nick Bonos                Nick Bonos, Vice President and Treasurer
Date December 6, 2010

^*   Print the name and title of each signing officer under his or her signature.

EX-99.CERT

CERTIFICATIONS

I, Richard M. Goldman, 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: December 6, 2010

/s/ Richard M. Goldman  

Richard M. Goldman, 

President 

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: December 6, 2010

/s/ Nick Bonos  

Nick Bonos, 

Vice President & Treasurer 

EX-99.906CERT

CERTIFICATIONS

I, Richard M. Goldman, President 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: December 6, 2010

/s/ Richard M. Goldman  

Richard M. Goldman, 

President 

CERTIFICATIONS

I, Nick Bonos, Vice President and 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: December 6, 2010

/s/ Nick Bonos  

Nick Bonos, 

Vice President and Treasurer