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RYDEX VARIABLE TRUST
[LOGO] ANNUAL REPORT
December 31, 1998
6116 Executive Boulevard, Suite 400
Rockville, MD 20852
(301) 468-8520
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DEAR SHAREHOLDER:
Over the past few years we have used the term volatile to describe the U.S.
equity markets. 1998 was no exception as U.S. equity markets posted the most
volatile year of the decade. Events such as the Asian economic crisis, Russia's
default on its debt, and the near collapse of one of the country's largest hedge
funds, were among the culprits that caused the market's erratic wandering. In
general, large-cap stocks continued to outperform small-cap stocks and investors
continued to prefer growth stocks to value oriented stocks. For 1998, the
technology sector maintained its leadership role by posting the best results
among the various sectors. Retail and health care industries were not far
behind. The commodity-driven sectors, including oil and precious metals, trailed
the general market miserably. In addition to volatility, consolidation was a
major theme for 1998. The total value of announced mergers was up 78% from the
previous year.
ECONOMIC REVIEW
Stocks soared to record highs during the first half of the year, propelled by a
favorable economic environment of low interest rates and strong consumer
spending. During the first quarter, Gross Domestic Product (GDP) grew by a
strong 5.4% rate. The economy started to slow down in the second quarter as GDP
decelerated to an annual rate of 1.8%, its slowest pace in three years. However,
in June, Federal Reserve Chairman Alan Greenspan described our nation's current
economy as the most impressive that he has ever witnessed and warned that the
potential for inflation was still present.
By early August, domestic political and economic uncertainty, coupled with the
deepening global economic crisis, became too much for the U.S. markets to bear.
U.S. stocks came under severe selling pressure as investors sought shelter from
the global economic crisis that started in Asia, moved to Russia, and began
threatening several emerging markets in Latin America. The pullback culminated
on August 31, when the Dow Jones Industrial Average tumbled 512 points to post
its second worst point loss in history, wiping out all of the year's gains.
Adding to the turmoil, the market had to face the near-collapse of one of the
country's largest hedge funds -- Long Term Capital Management. Taking note of
the severe negative investor sentiment, Greenspan indicated that the Fed must
take action to contain the effects of the global economic crisis on U.S. growth.
U.S. stocks rose sharply in
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reaction to the favorable comments. On September 29, in an effort to alleviate
further economic pressures, the Federal Reserve Board cut the federal funds rate
by 0.25%. The following day, investors expressed disappointment that the Fed
didn't implement a deeper cut in interest rates. Once again, U.S. stocks
plummeted, ending the worst quarter for U.S. stocks in eight years.
After the summer's global economic turmoil wiped out most of the stock market's
1998 gains, the Fed followed the September interest rate cut with two more in
the fall. This helped restore investor confidence in the U.S. equity markets,
and sent stocks roaring back to post one of the best quarters of the decade.
Fourth quarter GDP grew faster than expected with a 5.6% rate boosted by
consumer spending which was up an astonishing 4.8% over the past year -- the
strongest growth experienced in over a decade. The S&P 500's fourth quarter
gains catapulted the Index to a 26.67% return for the year. This marks the
fourth consecutive year of double-digit returns, a feat that has occurred only
once before since the post-war period. The Nasdaq 100 Index had an even more
impressive year, posting a gain of 85.31%.
SUMMARY
Overall, U.S. equity markets have responded to an impressive economy that
continues to expand with inflation in check. For 1998, GDP growth was a strong
3.9%, job growth remained healthy at over 2%, unemployment was a low 4.4%, and
inflation remained dormant. As the year closed, December marked the month in
which the current economic expansion, which started in April of 1991, became the
longest peacetime expansion in the nation's economic history.
[/S/ ALBERT P. VIRAGH, JR.]
Albert P. (Skip) Viragh, Jr.
Chairman
2
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RYDEX VARIABLE TRUST
FUND STRATEGY AND PERFORMANCE
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In this section you will find information about how each Rydex Fund performed
during the latest fiscal year in comparison to its benchmark. In addition, each
Fund's investment strategy will be described in brief to provide an
understanding of the factors that affected the Funds' performance.
THE NOVA FUND
BENCHMARK: 150% OF THE PERFORMANCE OF THE STANDARD & POOR'S 500-TM- COMPOSITE
STOCK PRICE INDEX
The S&P 500, which is the benchmark for large capitalized growth stock
performance, rose 26.67% in 1998, its fourth straight year of over 20% annual
gain. For the past 12 months, large-cap stocks outperformed mid-cap and
small-cap stocks. The S&P 500 reached an all time high of 1241.81 on December
29, 1998. To achieve its objective, the Nova Fund invested primarily in S&P 500
futures contracts and call options on S&P 500 futures contracts. By using call
options and futures contracts, the Fund attempts to maintain a 150% exposure to
the S&P 500 Index. For the 12-month period, the Nova Fund returned 30.06%.
CUMULATIVE FUND PERFORMANCE: MAY 7, 1997--DECEMBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500 INDEX NOVA FUND
<S> <C> <C>
5/7/97 $10,000.00 $10,000.00
5/8/97 $10,063.90 $10,056.89
5/9/97 $10,148.00 $10,112.31
5/12/97 $10,347.50 $10,270.22
5/13/97 $10,291.20 $10,214.68
5/14/97 $10,315.70 $10,250.36
5/15/97 $10,394.00 $10,321.96
5/16/97 $10,216.70 $10,173.24
5/19/97 $10,259.30 $10,216.40
5/20/97 $10,399.70 $10,319.27
5/21/97 $10,371.30 $10,290.94
5/22/97 $10,323.30 $10,245.70
5/23/97 $10,450.50 $10,385.11
5/27/97 $10,507.40 $10,417.96
5/28/97 $10,491.50 $10,387.31
5/29/97 $10,410.80 $10,348.94
5/30/97 $10,495.30 $10,400.43
6/2/97 $10,431.30 $10,376.89
6/3/97 $10,382.10 $10,366.10
6/4/97 $10,351.90 $10,300.26
6/5/97 $10,414.00 $10,340.97
6/6/97 $10,693.60 $10,519.73
6/9/97 $10,749.60 $10,579.80
6/10/97 $10,794.20 $10,608.74
6/11/97 $10,821.40 $10,661.46
6/12/97 $11,076.50 $10,831.76
6/13/97 $11,210.30 $10,952.04
6/16/97 $11,221.80 $10,959.76
6/17/97 $11,211.20 $10,966.26
6/18/97 $11,136.50 $10,900.91
6/19/97 $11,276.00 $11,009.91
6/20/97 $11,204.40 $11,018.61
6/23/97 $10,824.80 $10,772.42
6/24/97 $11,220.80 $10,989.68
6/25/97 $11,079.10 $10,899.56
6/26/97 $11,034.80 $10,834.46
6/27/97 $11,089.30 $10,878.72
6/30/97 $10,969.90 $10,852.36
7/1/97 $11,162.00 $10,924.57
7/2/97 $11,423.30 $11,083.96
7/3/97 $11,644.30 $11,242.00
7/7/97 $11,515.00 $11,184.13
7/8/97 $11,639.70 $11,264.44
7/9/97 $11,466.10 $11,127.00
7/10/97 $11,530.50 $11,203.50
7/11/97 $11,575.80 $11,239.06
7/14/97 $11,627.60 $11,259.90
7/15/97 $11,709.30 $11,350.38
7/16/97 $11,899.70 $11,483.17
7/17/97 $11,823.10 $11,422.11
7/18/97 $11,428.00 $11,222.14
7/21/97 $11,463.60 $11,193.20
7/22/97 $11,897.00 $11,451.17
7/23/97 $11,881.90 $11,482.80
7/24/97 $11,950.80 $11,528.41
7/25/97 $11,949.70 $11,510.14
7/28/97 $11,917.00 $11,481.45
7/29/97 $11,977.30 $11,553.05
7/30/97 $12,163.80 $11,675.66
7/31/97 $12,175.20 $11,700.18
8/1/97 $12,097.10 $11,612.52
8/4/97 $12,139.20 $11,651.26
8/5/97 $12,156.50 $11,676.64
8/6/97 $12,270.50 $11,774.11
8/7/97 $12,157.90 $11,662.17
8/8/97 $11,789.40 $11,445.77
8/11/97 $11,923.70 $11,488.19
8/12/97 $11,671.80 $11,359.82
8/13/97 $11,647.70 $11,304.53
8/14/97 $11,671.80 $11,338.25
8/15/97 $11,199.50 $11,044.48
8/18/97 $11,526.90 $11,187.69
8/19/97 $11,719.40 $11,353.45
8/20/97 $11,959.30 $11,517.01
8/21/97 $11,653.90 $11,341.68
8/22/97 $11,635.70 $11,323.17
8/25/97 $11,598.50 $11,281.72
8/26/97 $11,330.20 $11,194.18
8/27/97 $11,454.40 $11,202.52
8/28/97 $11,202.20 $11,079.55
8/29/97 $11,251.70 $11,028.05
9/2/97 $11,766.30 $11,372.70
9/3/97 $11,675.00 $11,376.01
9/4/97 $11,760.50 $11,413.04
9/5/97 $11,723.00 $11,390.72
9/8/97 $11,754.50 $11,417.08
9/9/97 $11,779.50 $11,446.75
9/10/97 $11,468.70 $11,267.87
9/11/97 $11,359.00 $11,188.91
9/12/97 $11,615.50 $11,327.70
9/15/97 $11,570.10 $11,276.94
9/16/97 $11,956.60 $11,594.12
9/17/97 $11,962.70 $11,561.76
9/18/97 $12,006.30 $11,614.35
9/19/97 $11,987.40 $11,653.83
9/22/97 $12,135.80 $11,714.16
9/23/97 $12,060.40 $11,671.24
9/24/97 $11,940.70 $11,579.90
9/25/97 $11,812.10 $11,499.35
9/26/97 $11,927.40 $11,588.98
9/29/97 $12,087.40 $11,688.53
9/30/97 $11,954.70 $11,614.23
10/1/97 $12,108.20 $11,713.91
10/2/97 $12,198.60 $11,775.83
10/3/97 $12,289.50 $11,831.86
10/6/97 $12,408.30 $11,925.77
10/7/97 $12,546.90 $12,053.65
10/8/97 $12,418.00 $11,939.87
10/9/97 $12,356.00 $11,900.39
10/10/97 $12,331.60 $11,855.77
10/13/97 $12,322.60 $11,869.50
10/14/97 $12,335.50 $11,896.23
10/15/97 $12,284.60 $11,840.32
10/16/97 $12,057.00 $11,711.95
10/17/97 $11,889.70 $11,575.98
10/20/97 $12,087.10 $11,716.36
10/21/97 $12,389.10 $11,920.75
10/22/97 $12,297.60 $11,874.28
10/23/97 $11,985.60 $11,656.04
10/24/97 $11,826.30 $11,545.08
10/27/97 $10,731.40 $10,748.63
10/28/97 $11,554.50 $11,295.09
10/29/97 $11,566.10 $11,269.46
10/30/97 $11,203.60 $11,079.67
10/31/97 $11,499.20 $11,213.80
11/3/97 $11,843.60 $11,512.59
11/4/97 $11,780.90 $11,534.29
11/5/97 $11,848.50 $11,558.81
11/6/97 $11,781.50 $11,500.82
11/7/97 $11,618.70 $11,371.84
11/10/97 $11,537.60 $11,293.62
11/11/97 $11,542.40 $11,326.11
11/12/97 $11,256.80 $11,107.62
11/13/97 $11,431.40 $11,238.81
11/14/97 $11,633.80 $11,382.14
11/17/97 $11,907.20 $11,600.99
11/18/97 $11,796.40 $11,503.27
11/19/97 $11,877.70 $11,581.25
11/20/97 $12,114.60 $11,757.68
11/21/97 $12,218.90 $11,808.07
11/24/97 $11,928.80 $11,606.75
11/25/97 $11,947.30 $11,657.63
11/26/97 $11,997.00 $11,667.69
11/28/97 $12,005.20 $11,713.79
12/1/97 $12,393.80 $11,951.28
12/2/97 $12,319.80 $11,913.39
12/3/97 $12,358.80 $11,975.80
12/4/97 $12,348.00 $11,930.80
12/5/97 $12,504.00 $12,061.87
12/8/97 $12,464.30 $12,044.46
12/9/97 $12,356.50 $11,963.66
12/10/97 $12,230.70 $11,890.22
12/11/97 $11,990.50 $11,708.15
12/12/97 $11,988.40 $11,689.14
12/15/97 $12,119.80 $11,811.75
12/16/97 $12,211.70 $11,868.76
12/17/97 $12,126.50 $11,838.11
12/18/97 $11,956.20 $11,712.56
12/19/97 $11,851.60 $11,608.10
12/22/97 $11,942.00 $11,692.95
12/23/97 $11,679.80 $11,514.19
12/24/97 $11,625.20 $11,435.47
12/26/97 $11,679.60 $11,481.57
12/29/97 $11,995.30 $11,688.78
12/30/97 $12,209.60 $11,903.09
12/31/97 $12,210.70 $11,898.07
1/2/98 $12,293.00 $11,954.10
1/5/98 $12,328.41 $11,979.48
1/6/98 $12,066.80 $11,850.86
1/7/98 $12,117.97 $11,819.23
1/8/98 $11,911.22 $11,721.64
1/9/98 $11,414.34 $11,374.05
1/12/98 $11,671.06 $11,515.29
1/13/98 $11,886.57 $11,673.57
1/14/98 $11,949.59 $11,744.93
1/15/98 $11,818.41 $11,656.53
1/16/98 $12,034.36 $11,788.70
1/20/98 $12,299.06 $11,998.23
1/21/98 $12,141.64 $11,902.36
1/22/98 $11,999.07 $11,807.46
1/23/98 $11,963.58 $11,740.52
1/26/98 $11,953.78 $11,732.79
1/27/98 $12,115.47 $11,880.78
1/28/98 $12,251.27 $11,984.26
1/29/98 $12,330.56 $12,082.71
1/30/98 $12,343.04 $12,018.83
2/2/98 $12,611.53 $12,276.18
2/3/98 $12,708.55 $12,334.05
2/4/98 $12,691.16 $12,345.21
2/5/98 $12,687.72 $12,304.01
2/6/98 $12,841.44 $12,413.38
2/9/98 $12,781.35 $12,392.29
2/10/98 $12,936.48 $12,493.69
2/11/98 $12,934.43 $12,505.95
2/12/98 $12,980.17 $12,556.58
2/13/98 $12,909.25 $12,506.93
2/17/98 $12,994.54 $12,539.66
2/18/98 $13,121.09 $12,653.69
2/19/98 $13,047.40 $12,607.34
2/20/98 $13,161.33 $12,680.05
2/23/98 $13,220.61 $12,728.23
2/24/98 $13,101.13 $12,635.30
2/25/98 $13,293.80 $12,786.59
2/26/98 $13,403.09 $12,857.34
2/27/98 $13,378.65 $12,865.55
3/2/98 $13,368.88 $12,845.44
3/3/98 $13,469.20 $12,898.41
3/4/98 $13,339.30 $12,840.91
3/5/98 $13,190.50 $12,690.22
3/6/98 $13,500.00 $12,943.41
3/9/98 $13,444.74 $12,899.76
3/10/98 $13,623.29 $13,048.36
3/11/98 $13,683.52 $13,100.10
3/12/98 $13,746.30 $13,117.87
3/13/98 $13,695.80 $13,101.57
3/16/98 $13,874.37 $13,232.51
3/17/98 $13,915.92 $13,246.98
3/18/98 $13,973.23 $13,309.14
3/19/98 $14,036.39 $13,360.88
3/20/98 $14,185.82 $13,476.37
3/23/98 $14,138.36 $13,432.11
3/24/98 $14,283.72 $13,555.95
3/25/98 $14,227.43 $13,510.21
3/26/98 $14,181.73 $13,496.48
3/27/98 $14,127.17 $13,430.76
3/30/98 $14,104.54 $13,407.59
3/31/98 $14,186.37 $13,508.13
4/1/98 $14,308.11 $13,586.60
4/2/98 $14,514.58 $13,732.01
4/3/98 $14,578.30 $13,764.99
4/6/98 $14,453.04 $13,748.93
4/7/98 $14,324.32 $13,603.76
4/8/98 $14,204.64 $13,506.90
4/9/98 $14,335.59 $13,617.49
4/13/98 $14,296.54 $13,605.48
4/14/98 $14,428.90 $13,679.78
4/15/98 $14,478.67 $13,723.55
4/16/98 $14,273.58 $13,586.84
4/17/98 $14,515.26 $13,765.23
4/20/98 $14,491.52 $13,776.64
4/21/98 $14,595.19 $13,809.62
4/22/98 $14,618.47 $13,854.49
4/23/98 $14,447.82 $13,726.74
4/24/98 $14,226.74 $13,583.53
4/27/98 $13,918.48 $13,321.64
4/28/98 $13,880.12 $13,304.11
4/29/98 $13,968.27 $13,420.71
4/30/98 $14,326.77 $13,630.98
5/1/98 $14,529.56 $13,744.15
5/4/98 $14,495.94 $13,757.26
5/5/98 $14,335.61 $13,678.55
5/6/98 $14,075.77 $13,546.99
5/7/98 $13,899.37 $13,427.09
5/8/98 $14,238.81 $13,586.47
5/11/98 $14,183.71 $13,568.08
5/12/98 $14,373.27 $13,680.27
5/13/98 $14,409.76 $13,717.91
5/14/98 $14,322.98 $13,699.64
5/15/98 $14,187.53 $13,593.71
5/18/98 $14,118.32 $13,558.03
5/19/98 $14,262.81 $13,603.39
5/20/98 $14,437.40 $13,720.36
5/21/98 $14,315.70 $13,666.17
5/22/98 $14,233.13 $13,615.04
5/26/98 $13,821.96 $13,413.35
5/27/98 $13,903.63 $13,391.41
5/28/98 $13,975.03 $13,457.12
5/29/98 $13,779.29 $13,374.12
6/1/98 $13,864.93 $13,376.08
6/2/98 $13,870.89 $13,401.22
6/3/98 $13,527.88 $13,274.93
6/4/98 $13,913.27 $13,423.29
6/5/98 $14,297.97 $13,656.60
6/8/98 $14,284.10 $13,679.41
6/9/98 $14,334.84 $13,712.39
6/10/98 $14,210.13 $13,637.23
6/11/98 $13,793.49 $13,420.22
6/12/98 $13,965.72 $13,472.45
6/15/98 $13,424.71 $13,204.80
6/16/98 $13,702.85 $13,334.52
6/17/98 $14,142.61 $13,573.72
6/18/98 $14,069.48 $13,564.77
6/19/98 $13,949.53 $13,494.64
6/22/98 $14,038.39 $13,526.15
6/23/98 $14,300.96 $13,725.63
6/24/98 $14,605.27 $13,889.80
6/25/98 $14,570.93 $13,845.66
6/26/98 $14,657.44 $13,893.73
6/29/98 $14,741.84 $13,958.58
6/30/98 $14,573.19 $13,901.57
7/1/98 $14,838.96 $14,082.05
7/2/98 $14,872.68 $14,055.81
7/6/98 $15,103.87 $14,189.33
7/7/98 $15,062.51 $14,156.84
7/8/98 $15,214.21 $14,300.41
7/9/98 $15,063.45 $14,204.65
7/10/98 $15,169.21 $14,275.40
7/13/98 $15,199.34 $14,285.94
7/14/98 $15,443.65 $14,437.85
7/15/98 $15,391.73 $14,403.89
7/16/98 $15,550.14 $14,516.81
7/17/98 $15,598.24 $14,550.28
7/20/98 $15,599.93 $14,517.79
7/21/98 $15,179.00 $14,284.47
7/22/98 $15,162.30 $14,272.33
7/23/98 $14,663.90 $13,974.03
7/24/98 $14,677.87 $13,986.91
7/27/98 $14,790.12 $14,066.23
7/28/98 $14,433.37 $13,857.43
7/29/98 $14,307.84 $13,795.76
7/30/98 $14,645.08 $14,012.16
7/31/98 $14,202.10 $13,740.10
8/3/98 $14,092.12 $13,639.19
8/4/98 $13,254.67 $13,144.85
8/5/98 $13,526.06 $13,258.99
8/6/98 $13,620.52 $13,359.53
8/7/98 $13,652.40 $13,357.32
8/10/98 $13,534.89 $13,279.96
8/11/98 $13,198.08 $13,106.35
8/12/98 $13,565.71 $13,293.20
8/13/98 $13,271.42 $13,179.05
8/14/98 $13,033.05 $13,029.96
8/17/98 $13,447.27 $13,286.46
8/18/98 $13,848.16 $13,501.39
8/19/98 $13,765.83 $13,462.89
8/20/98 $13,607.64 $13,383.68
8/21/98 $13,464.90 $13,255.93
8/24/98 $13,583.86 $13,341.26
8/25/98 $13,608.95 $13,399.13
8/26/98 $13,477.84 $13,292.83
8/27/98 $12,493.12 $12,782.79
8/28/98 $12,439.35 $12,594.71
8/31/98 $11,004.32 $11,739.90
9/1/98 $11,792.00 $12,189.99
9/2/98 $11,644.60 $12,143.89
9/3/98 $11,520.80 $12,043.11
9/4/98 $11,366.80 $11,940.49
9/8/98 $12,269.30 $12,548.25
9/9/98 $11,871.80 $12,336.63
9/10/98 $11,263.20 $12,017.73
9/11/98 $12,040.00 $12,371.69
9/14/98 $12,353.60 $12,625.00
9/15/98 $12,465.60 $12,722.59
9/16/98 $12,669.40 $12,818.22
9/17/98 $12,152.20 $12,491.97
9/18/98 $12,178.20 $12,506.93
9/21/98 $12,170.40 $12,553.52
9/22/98 $12,329.70 $12,625.98
9/23/98 $13,018.10 $13,070.92
9/24/98 $12,575.40 $12,784.38
9/25/98 $12,524.90 $12,809.27
9/28/98 $12,745.80 $12,857.58
9/29/98 $12,643.94 $12,861.63
9/30/98 $12,070.76 $12,469.65
10/1/98 $11,523.51 $12,093.74
10/2/98 $11,846.06 $12,292.49
10/5/98 $11,504.29 $12,120.35
10/6/98 $11,506.25 $12,071.68
10/7/98 $11,239.47 $11,901.13
10/8/98 $11,068.75 $11,763.32
10/9/98 $11,452.43 $12,068.37
10/12/98 $11,692.09 $12,232.53
10/13/98 $11,652.73 $12,196.86
10/14/98 $11,798.26 $12,328.41
10/15/98 $12,747.11 $12,842.87
10/16/98 $12,786.14 $12,952.36
10/19/98 $12,842.76 $13,025.55
10/20/98 $12,925.44 $13,044.43
10/21/98 $12,900.29 $13,117.87
10/22/98 $13,151.82 $13,222.82
10/23/98 $12,924.51 $13,127.07
10/26/98 $13,043.52 $13,147.30
10/27/98 $12,925.21 $13,061.72
10/28/98 $12,863.50 $13,095.44
10/29/98 $13,321.61 $13,314.17
10/30/98 $13,475.71 $13,470.37
11/2/98 $13,768.48 $13,628.90
11/3/98 $13,635.96 $13,619.58
11/4/98 $13,834.42 $13,715.58
11/5/98 $14,134.86 $13,899.61
11/6/98 $14,270.21 $13,989.48
11/9/98 $14,053.72 $13,856.94
11/10/98 $13,913.22 $13,833.16
11/11/98 $13,861.71 $13,743.78
11/12/98 $13,818.19 $13,703.56
11/13/98 $13,994.53 $13,802.02
11/16/98 $14,161.90 $13,926.34
11/17/98 $14,183.35 $13,968.76
11/18/98 $14,303.73 $14,032.02
11/19/98 $14,466.07 $14,131.70
11/20/98 $14,629.41 $14,265.83
11/23/98 $15,130.33 $14,568.18
11/24/98 $14,989.87 $14,504.18
11/25/98 $14,976.73 $14,551.75
11/27/98 $15,127.86 $14,618.20
11/30/98 $14,522.93 $14,266.82
12/1/98 $14,748.12 $14,409.65
12/2/98 $14,710.60 $14,360.24
12/3/98 $14,340.47 $14,101.42
12/4/98 $14,843.30 $14,427.55
12/7/98 $14,977.42 $14,561.93
12/8/98 $14,857.04 $14,484.44
12/9/98 $14,912.39 $14,510.31
12/10/98 $14,571.32 $14,283.86
12/11/98 $14,517.72 $14,301.51
12/14/98 $14,012.97 $13,991.81
12/15/98 $14,503.62 $14,257.01
12/16/98 $14,499.07 $14,246.09
12/17/98 $14,825.95 $14,467.28
12/18/98 $14,918.08 $14,565.97
12/21/98 $15,246.89 $14,747.55
12/22/98 $15,277.25 $14,756.50
12/23/98 $15,800.64 $15,062.65
12/24/98 $15,738.34 $15,034.82
12/28/98 $15,623.98 $15,025.26
12/29/98 $16,026.50 $15,225.35
12/30/98 $15,786.42 $15,104.22
12/31/98 $15,880.00 $15,071.11
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
------------------------------------------
FISCAL YEAR
ENDED SINCE INCEPTION (5-7-97)
12-31-98 TO 12-31-98
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Nova Fund 30.06% 58.80%
S&P 500 Index 26.67% 50.71%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
3
<PAGE>
THE URSA FUND
BENCHMARK: INVERSE (OPPOSITE) OF THE STANDARD & POOR'S 500-TM-
COMPOSITE STOCK PRICE INDEX
The Ursa Fund is designed to be 100% short the market at all times. To achieve
its objective, the Fund sold S&P 500 futures contracts and purchased put options
on S&P 500 futures contracts. The Ursa Fund posted a -21.93% total return for
the period as a result of its short position compared to the 26.67% return for
the S&P 500. Although the Fund remained 100% short the market on each trading
day, over the entire period the Fund tended to deviate, to the benefit of
shareholders, due to a negative compounding effect.
CUMULATIVE FUND PERFORMANCE: JUNE 10, 1997--DECEMBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
URSA FUND S&P 500 INDEX
<S> <C> <C>
6/10/97 $10,000.00 $10,000.00
6/11/97 $9,977.16 $10,049.70
6/12/97 $9,784.80 $10,210.22
6/13/97 $9,697.09 $10,323.60
6/16/97 $9,692.58 $10,330.88
6/17/97 $9,705.34 $10,337.00
6/18/97 $9,738.26 $10,275.41
6/19/97 $9,636.61 $10,378.15
6/20/97 $9,707.17 $10,386.35
6/23/97 $9,910.04 $10,154.29
6/24/97 $9,695.05 $10,359.08
6/25/97 $9,767.11 $10,274.13
6/26/97 $9,798.63 $10,212.77
6/27/97 $9,759.17 $10,254.60
6/30/97 $9,824.47 $10,229.64
7/1/97 $9,709.52 $10,297.71
7/2/97 $9,549.11 $10,447.95
7/3/97 $9,413.47 $10,596.92
7/7/97 $9,503.44 $10,542.37
7/8/97 $9,402.64 $10,618.07
7/9/97 $9,500.54 $10,488.52
7/10/97 $9,458.19 $10,560.63
7/11/97 $9,424.20 $10,594.15
7/14/97 $9,394.82 $10,613.80
7/15/97 $9,346.14 $10,698.97
7/16/97 $9,220.90 $10,824.25
7/17/97 $9,265.72 $10,766.70
7/18/97 $9,481.03 $10,578.20
7/21/97 $9,456.04 $10,550.93
7/22/97 $9,207.81 $10,794.09
7/23/97 $9,211.67 $10,823.90
7/24/97 $9,171.36 $10,866.90
7/25/97 $9,173.40 $10,849.68
7/28/97 $9,177.36 $10,822.63
7/29/97 $9,146.16 $10,890.13
7/30/97 $9,034.54 $11,005.70
7/31/97 $9,042.58 $11,028.81
8/1/97 $9,075.50 $10,946.18
8/4/97 $9,050.84 $10,982.70
8/5/97 $9,044.19 $11,006.62
8/6/97 $8,970.20 $11,098.50
8/7/97 $9,037.00 $10,992.98
8/8/97 $9,216.93 $10,789.00
8/11/97 $9,148.84 $10,828.99
8/12/97 $9,295.10 $10,707.99
8/13/97 $9,320.72 $10,655.86
8/14/97 $9,285.88 $10,687.65
8/15/97 $9,565.73 $10,410.74
8/18/97 $9,346.99 $10,545.73
8/19/97 $9,235.26 $10,701.98
8/20/97 $9,106.49 $10,856.15
8/21/97 $9,264.11 $10,690.88
8/22/97 $9,267.65 $10,673.43
8/25/97 $9,288.77 $10,634.37
8/26/97 $9,445.11 $10,551.85
8/27/97 $9,388.81 $10,559.71
8/28/97 $9,518.56 $10,443.79
8/29/97 $9,482.42 $10,395.25
9/2/97 $9,173.93 $10,720.12
9/3/97 $9,228.08 $10,723.24
9/4/97 $9,169.96 $10,758.14
9/5/97 $9,184.44 $10,737.11
9/8/97 $9,158.81 $10,761.96
9/9/97 $9,155.60 $10,789.93
9/10/97 $9,345.92 $10,621.31
9/11/97 $9,384.20 $10,546.88
9/12/97 $9,242.88 $10,677.71
9/15/97 $9,273.01 $10,629.86
9/16/97 $9,039.04 $10,928.84
9/17/97 $9,031.96 $10,898.33
9/18/97 $9,006.23 $10,947.91
9/19/97 $8,998.94 $10,985.13
9/22/97 $8,945.43 $11,041.99
9/23/97 $8,985.86 $11,001.54
9/24/97 $9,046.65 $10,915.44
9/25/97 $9,104.23 $10,839.51
9/26/97 $9,036.79 $10,923.99
9/29/97 $8,959.26 $11,017.83
9/30/97 $9,057.81 $10,947.80
10/1/97 $8,950.79 $11,041.76
10/2/97 $8,900.72 $11,100.12
10/3/97 $8,847.75 $11,152.93
10/6/97 $8,792.10 $11,241.46
10/7/97 $8,715.33 $11,362.00
10/8/97 $8,779.55 $11,254.75
10/9/97 $8,799.71 $11,217.54
10/10/97 $8,818.26 $11,175.47
10/13/97 $8,811.94 $11,188.42
10/14/97 $8,807.86 $11,213.61
10/15/97 $8,830.59 $11,160.91
10/16/97 $8,965.06 $11,039.91
10/17/97 $9,052.55 $10,911.74
10/20/97 $8,931.17 $11,044.07
10/21/97 $8,766.69 $11,236.72
10/22/97 $8,819.87 $11,192.92
10/23/97 $8,982.53 $10,987.21
10/24/97 $9,080.32 $10,882.61
10/27/97 $9,732.69 $10,135.33
10/28/97 $9,168.46 $10,646.97
10/29/97 $9,185.30 $10,622.81
10/30/97 $9,374.87 $10,443.91
10/31/97 $9,165.46 $10,570.34
11/3/97 $8,936.75 $10,851.99
11/4/97 $8,964.73 $10,872.44
11/5/97 $8,930.64 $10,895.56
11/6/97 $8,963.34 $10,840.89
11/7/97 $9,059.52 $10,719.31
11/10/97 $9,112.92 $10,645.58
11/11/97 $9,102.41 $10,676.21
11/12/97 $9,269.47 $10,470.26
11/13/97 $9,146.05 $10,593.92
11/14/97 $9,029.07 $10,729.02
11/17/97 $8,865.01 $10,935.31
11/18/97 $8,914.77 $10,843.21
11/19/97 $8,864.91 $10,916.71
11/20/97 $8,728.62 $11,083.01
11/21/97 $8,671.58 $11,130.51
11/24/97 $8,841.32 $10,940.75
11/25/97 $8,819.87 $10,988.71
11/26/97 $8,790.38 $10,998.19
11/28/97 $8,785.67 $11,041.64
12/1/97 $8,564.24 $11,265.50
12/2/97 $8,605.63 $11,229.79
12/3/97 $8,581.08 $11,288.62
12/4/97 $8,588.16 $11,246.20
12/5/97 $8,489.72 $11,369.75
12/8/97 $8,511.60 $11,353.33
12/9/97 $8,552.45 $11,277.17
12/10/97 $8,636.94 $11,207.95
12/11/97 $8,784.59 $11,036.32
12/12/97 $8,770.87 $11,018.41
12/15/97 $8,691.09 $11,133.98
12/16/97 $8,637.05 $11,187.72
12/17/97 $8,681.55 $11,158.83
12/18/97 $8,768.19 $11,040.48
12/19/97 $8,869.52 $10,942.02
12/22/97 $8,815.05 $11,021.99
12/23/97 $8,969.02 $10,853.61
12/24/97 $9,002.91 $10,779.29
12/26/97 $8,958.94 $10,822.75
12/29/97 $8,779.98 $11,018.06
12/30/97 $8,647.45 $11,220.08
12/31/97 $8,651.85 $11,215.34
1/2/98 $8,605.64 $11,268.16
1/5/98 $8,585.84 $11,292.08
1/6/98 $8,723.23 $11,170.85
1/7/98 $8,693.62 $11,141.03
1/8/98 $8,793.20 $11,049.04
1/9/98 $9,090.22 $10,721.39
1/12/98 $8,926.25 $10,854.53
1/13/98 $8,798.65 $11,003.73
1/14/98 $8,760.51 $11,071.00
1/15/98 $8,833.53 $10,987.67
1/16/98 $8,709.00 $11,112.25
1/20/98 $8,564.33 $11,309.76
1/21/98 $8,647.98 $11,219.39
1/22/98 $8,726.06 $11,129.94
1/23/98 $8,740.65 $11,066.83
1/26/98 $8,747.03 $11,059.55
1/27/98 $8,656.81 $11,199.05
1/28/98 $8,581.27 $11,296.59
1/29/98 $8,536.60 $11,389.39
1/30/98 $8,531.03 $11,329.18
2/2/98 $8,390.70 $11,571.76
2/3/98 $8,332.62 $11,626.31
2/4/98 $8,341.48 $11,636.83
2/5/98 $8,344.73 $11,598.00
2/6/98 $8,260.35 $11,701.09
2/9/98 $8,289.67 $11,681.21
2/10/98 $8,213.78 $11,776.79
2/11/98 $8,218.32 $11,788.34
2/12/98 $8,186.70 $11,836.07
2/13/98 $8,226.82 $11,789.27
2/17/98 $8,185.43 $11,820.13
2/18/98 $8,117.48 $11,927.61
2/19/98 $8,156.29 $11,883.92
2/20/98 $8,099.47 $11,952.45
2/23/98 $8,068.97 $11,997.87
2/24/98 $8,129.46 $11,910.27
2/25/98 $8,033.09 $12,052.89
2/26/98 $7,985.75 $12,119.57
2/27/98 $7,992.06 $12,127.31
3/2/98 $8,001.05 $12,108.36
3/3/98 $7,957.40 $12,158.29
3/4/98 $8,007.18 $12,104.08
3/5/98 $8,078.17 $11,962.05
3/6/98 $7,922.20 $12,200.70
3/9/98 $7,950.35 $12,159.56
3/10/98 $7,870.89 $12,299.63
3/11/98 $7,850.46 $12,348.40
3/12/98 $7,819.68 $12,365.16
3/13/98 $7,843.62 $12,349.79
3/16/98 $7,762.04 $12,473.22
3/17/98 $7,740.94 $12,486.85
3/18/98 $7,713.71 $12,545.45
3/19/98 $7,689.65 $12,594.22
3/20/98 $7,643.41 $12,703.09
3/23/98 $7,661.80 $12,661.37
3/24/98 $7,598.95 $12,778.09
3/25/98 $7,624.06 $12,734.98
3/26/98 $7,637.00 $12,722.04
3/27/98 $7,663.91 $12,660.09
3/30/98 $7,672.71 $12,638.25
3/31/98 $7,642.09 $12,733.02
4/1/98 $7,586.46 $12,806.99
4/2/98 $7,502.11 $12,944.05
4/3/98 $7,469.67 $12,975.14
4/6/98 $7,524.76 $12,960.00
4/7/98 $7,583.83 $12,823.17
4/8/98 $7,629.03 $12,731.86
4/9/98 $7,575.47 $12,836.11
4/13/98 $7,593.65 $12,824.78
4/14/98 $7,535.77 $12,894.82
4/15/98 $7,514.80 $12,936.08
4/16/98 $7,600.58 $12,807.22
4/17/98 $7,499.22 $12,975.37
4/20/98 $7,505.57 $12,986.12
4/21/98 $7,466.15 $13,017.21
4/22/98 $7,453.88 $13,059.51
4/23/98 $7,521.85 $12,939.08
4/24/98 $7,608.32 $12,804.10
4/27/98 $7,742.83 $12,557.24
4/28/98 $7,757.78 $12,540.71
4/29/98 $7,710.70 $12,650.62
4/30/98 $7,573.51 $12,848.82
5/1/98 $7,494.81 $12,955.49
5/4/98 $7,509.51 $12,967.86
5/5/98 $7,560.92 $12,893.66
5/6/98 $7,651.11 $12,769.66
5/7/98 $7,710.14 $12,656.63
5/8/98 $7,588.14 $12,806.87
5/11/98 $7,605.61 $12,789.53
5/12/98 $7,538.72 $12,895.28
5/13/98 $7,522.37 $12,930.76
5/14/98 $7,557.64 $12,913.54
5/15/98 $7,604.40 $12,813.69
5/18/98 $7,629.83 $12,780.06
5/19/98 $7,580.95 $12,822.82
5/20/98 $7,515.17 $12,933.07
5/21/98 $7,557.88 $12,881.99
5/22/98 $7,587.13 $12,833.80
5/26/98 $7,725.05 $12,643.68
5/27/98 $7,702.32 $12,623.00
5/28/98 $7,670.69 $12,684.94
5/29/98 $7,740.00 $12,606.70
6/1/98 $7,709.98 $12,608.55
6/2/98 $7,705.42 $12,632.24
6/3/98 $7,828.30 $12,513.20
6/4/98 $7,688.18 $12,653.04
6/5/98 $7,546.97 $12,872.98
6/8/98 $7,552.52 $12,894.47
6/9/98 $7,533.19 $12,925.56
6/10/98 $7,578.65 $12,854.72
6/11/98 $7,721.55 $12,650.16
6/12/98 $7,657.03 $12,699.39
6/15/98 $7,846.01 $12,447.10
6/16/98 $7,741.09 $12,569.37
6/17/98 $7,580.76 $12,794.85
6/18/98 $7,610.90 $12,786.41
6/19/98 $7,659.55 $12,720.31
6/22/98 $7,626.84 $12,750.01
6/23/98 $7,536.46 $12,938.04
6/24/98 $7,438.54 $13,092.79
6/25/98 $7,451.18 $13,051.19
6/26/98 $7,425.12 $13,096.49
6/29/98 $7,399.47 $13,157.63
6/30/98 $7,452.40 $13,103.89
7/1/98 $7,365.98 $13,274.01
7/2/98 $7,356.77 $13,249.27
7/6/98 $7,283.69 $13,375.13
7/7/98 $7,297.04 $13,344.51
7/8/98 $7,247.02 $13,479.84
7/9/98 $7,292.80 $13,389.58
7/10/98 $7,257.36 $13,456.26
7/13/98 $7,257.20 $13,466.20
7/14/98 $7,176.08 $13,609.39
7/15/98 $7,190.16 $13,577.38
7/16/98 $7,139.89 $13,683.82
7/17/98 $7,136.19 $13,715.37
7/20/98 $7,138.02 $13,684.75
7/21/98 $7,261.31 $13,464.81
7/22/98 $7,258.33 $13,453.37
7/23/98 $7,401.22 $13,172.19
7/24/98 $7,404.05 $13,184.32
7/27/98 $7,361.50 $13,259.10
7/28/98 $7,477.31 $13,062.28
7/29/98 $7,519.13 $13,004.15
7/30/98 $7,404.87 $13,208.13
7/31/98 $7,557.06 $12,951.68
8/3/98 $7,591.72 $12,856.57
8/4/98 $7,881.22 $12,390.58
8/5/98 $7,776.47 $12,498.18
8/6/98 $7,747.24 $12,592.95
8/7/98 $7,731.27 $12,590.87
8/10/98 $7,775.62 $12,517.94
8/11/98 $7,897.14 $12,354.29
8/12/98 $7,756.09 $12,530.42
8/13/98 $7,858.61 $12,422.83
8/14/98 $7,956.38 $12,282.29
8/17/98 $7,796.33 $12,524.07
8/18/98 $7,641.37 $12,726.66
8/19/98 $7,662.96 $12,690.37
8/20/98 $7,714.17 $12,615.72
8/21/98 $7,769.15 $12,495.29
8/24/98 $7,722.06 $12,575.73
8/25/98 $7,705.19 $12,630.28
8/26/98 $7,754.21 $12,530.08
8/27/98 $8,118.80 $12,049.30
8/28/98 $8,151.14 $11,872.02
8/31/98 $8,761.74 $11,066.26
9/1/98 $8,344.00 $11,490.52
9/2/98 $8,410.91 $11,447.06
9/3/98 $8,466.67 $11,352.06
9/4/98 $8,542.80 $11,255.33
9/8/98 $8,089.02 $11,828.22
9/9/98 $8,282.24 $11,628.74
9/10/98 $8,559.74 $11,328.14
9/11/98 $8,174.48 $11,661.79
9/14/98 $8,033.69 $11,900.56
9/15/98 $7,988.66 $11,992.56
9/16/98 $7,906.95 $12,082.70
9/17/98 $8,117.22 $11,775.17
9/18/98 $8,117.65 $11,789.27
9/21/98 $8,119.69 $11,833.19
9/22/98 $8,051.38 $11,901.49
9/23/98 $7,752.12 $12,320.89
9/24/98 $7,925.82 $12,050.80
9/25/98 $7,944.91 $12,074.27
9/28/98 $7,853.98 $12,119.80
9/29/98 $7,892.68 $12,123.61
9/30/98 $8,131.10 $11,754.13
10/1/98 $8,370.00 $11,399.79
10/2/98 $8,210.10 $11,587.13
10/5/98 $8,365.69 $11,424.87
10/6/98 $8,371.49 $11,378.99
10/7/98 $8,498.71 $11,218.23
10/8/98 $8,572.54 $11,088.33
10/9/98 $8,377.41 $11,375.87
10/12/98 $8,262.64 $11,530.62
10/13/98 $8,284.93 $11,496.99
10/14/98 $8,216.83 $11,621.00
10/15/98 $7,788.52 $12,105.93
10/16/98 $7,778.82 $12,209.14
10/19/98 $7,754.45 $12,278.13
10/20/98 $7,724.26 $12,295.93
10/21/98 $7,730.51 $12,365.16
10/22/98 $7,626.34 $12,464.09
10/23/98 $7,717.76 $12,373.83
10/26/98 $7,668.57 $12,392.89
10/27/98 $7,711.70 $12,312.23
10/28/98 $7,730.23 $12,344.01
10/29/98 $7,545.31 $12,550.19
10/30/98 $7,490.30 $12,697.42
11/2/98 $7,380.08 $12,846.86
11/3/98 $7,430.19 $12,838.07
11/4/98 $7,358.07 $12,928.57
11/5/98 $7,253.79 $13,102.04
11/6/98 $7,209.00 $13,186.75
11/9/98 $7,283.76 $13,061.82
11/10/98 $7,333.86 $13,039.40
11/11/98 $7,346.44 $12,955.15
11/12/98 $7,360.09 $12,917.24
11/13/98 $7,296.01 $13,010.04
11/16/98 $7,240.00 $13,127.23
11/17/98 $7,234.36 $13,167.22
11/18/98 $7,189.08 $13,226.85
11/19/98 $7,133.08 $13,320.81
11/20/98 $7,081.38 $13,447.25
11/23/98 $6,914.49 $13,732.25
11/24/98 $6,958.15 $13,671.92
11/25/98 $6,961.90 $13,716.76
11/27/98 $6,921.47 $13,779.40
11/30/98 $7,107.57 $13,448.17
12/1/98 $7,029.11 $13,582.81
12/2/98 $7,066.33 $13,536.24
12/3/98 $7,183.87 $13,292.27
12/4/98 $7,005.82 $13,599.69
12/7/98 $6,963.24 $13,726.35
12/8/98 $6,998.30 $13,653.31
12/9/98 $6,984.11 $13,677.70
12/10/98 $7,087.70 $13,464.24
12/11/98 $7,104.02 $13,480.88
12/14/98 $7,272.89 $13,188.95
12/15/98 $7,100.26 $13,438.93
12/16/98 $7,105.34 $13,428.64
12/17/98 $6,993.75 $13,637.13
12/18/98 $6,988.66 $13,730.17
12/21/98 $6,892.07 $13,901.33
12/22/98 $6,861.84 $13,909.76
12/23/98 $6,737.44 $14,198.34
12/24/98 $6,771.72 $14,172.11
12/28/98 $6,797.14 $14,163.09
12/29/98 $6,682.40 $14,351.71
12/30/98 $6,744.19 $14,237.52
12/31/98 $6,731.00 $14,206.32
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
---------------------------------------
FISCAL YEAR SINCE INCEPTION OF
ENDED CONTINUOUS OPERATIONS
12-31-98 6-10-97 TO 12-31-98
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ursa Fund -21.93% -32.69%
S&P 500 Index 26.67% 42.06%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
THE FUND COMMENCED CONTINUOUS OPERATIONS ON JUNE 10, 1997. PRIOR TO THAT TIME,
DUE TO THE NATURE OF THE FUND'S INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. PERIODS OF OPERATION, INCLUDING RETURNS FOR EACH
DISCRETE PERIOD, WERE AS FOLLOWS: MAY 7, 1997 TO MAY 21, 1997 -3.70%; AND MAY
24, 1997 TO JUNE 3, 1997 0.10%. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. THE S&P 500 INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS
NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
4
<PAGE>
THE OTC FUND
BENCHMARK: NASDAQ 100 INDEX
Over the counter securities continued to perform well during the latest fiscal
year. The technology laden NASDAQ 100 Index was up 85.31% for the period ending
December 31, 1998. The Rydex OTC Fund usually owned approximately eighty stocks
representing 95% of the capitalization of the Index. The Fund performed in step
with the NASDAQ 100 by posting a total return of 83.76% for the period.
CUMULATIVE FUND PERFORMANCE: MAY 7, 1997--DECEMBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
OTC FUND NASDAQ 100 INDEX NASDAQ COMPOSITE INDEX
<S> <C> <C> <C>
5/7/97 $10,000.00 $10,000.00 $10,000.00
5/8/97 $10,106.90 $10,110.64 $10,059.87
5/9/97 $10,098.50 $10,108.33 $10,091.77
5/12/97 $10,162.80 $10,168.81 $10,160.86
5/13/97 $10,005.20 $10,014.08 $10,080.73
5/14/97 $9,980.30 $10,006.93 $10,095.55
5/15/97 $10,193.80 $10,247.45 $10,231.84
5/16/97 $10,023.20 $10,065.99 $10,134.70
5/19/97 $9,992.90 $10,047.07 $10,138.56
5/20/97 $10,318.30 $10,360.94 $10,309.70
5/21/97 $10,389.10 $10,453.54 $10,384.30
5/22/97 $10,350.30 $10,404.93 $10,375.61
5/23/97 $10,485.60 $10,547.57 $10,505.02
5/27/97 $10,758.60 $10,828.34 $10,652.35
5/28/97 $10,730.80 $10,806.23 $10,659.68
5/29/97 $10,600.00 $10,673.60 $10,605.71
5/30/97 $10,479.30 $10,545.04 $10,585.15
6/2/97 $10,467.50 $10,543.28 $10,618.94
6/3/97 $10,151.60 $10,225.67 $10,468.66
6/4/97 $10,148.20 $10,139.34 $10,429.05
6/5/97 $10,203.70 $10,234.47 $10,507.52
6/6/97 $10,328.50 $10,392.50 $10,619.32
6/9/97 $10,420.60 $10,497.86 $10,673.74
6/10/97 $10,265.10 $10,350.27 $10,595.51
6/11/97 $10,356.40 $10,436.71 $10,642.07
6/12/97 $10,349.20 $10,447.38 $10,668.30
6/13/97 $10,518.80 $10,606.08 $10,756.82
6/16/97 $10,624.00 $10,732.22 $10,824.24
6/17/97 $10,739.60 $10,880.69 $10,908.60
6/18/97 $10,573.60 $10,684.71 $10,827.87
6/19/97 $10,670.10 $10,799.09 $10,939.07
6/20/97 $10,634.10 $10,793.15 $10,938.76
6/23/97 $10,503.10 $10,657.22 $10,842.16
6/24/97 $10,721.60 $10,848.24 $10,979.05
6/25/97 $10,648.90 $10,769.06 $10,932.26
6/26/97 $10,511.20 $10,638.41 $10,857.73
6/27/97 $10,463.00 $10,590.79 $10,871.11
6/30/97 $10,395.30 $10,527.99 $10,900.74
7/1/97 $10,345.70 $10,485.54 $10,871.87
7/2/97 $10,593.60 $10,732.88 $11,003.09
7/3/97 $10,722.60 $10,849.34 $11,093.80
7/7/97 $10,746.30 $10,899.05 $11,117.46
7/8/97 $10,913.30 $11,061.49 $11,226.01
7/9/97 $10,953.20 $11,109.11 $11,237.57
7/10/97 $10,946.90 $11,108.01 $11,270.08
7/11/97 $10,991.70 $11,169.37 $11,358.44
7/14/97 $11,301.70 $11,458.17 $11,519.15
7/15/97 $11,495.90 $11,646.56 $11,656.95
7/16/97 $12,006.60 $12,135.07 $11,948.13
7/17/97 $11,922.90 $12,041.81 $11,859.08
7/18/97 $11,641.50 $11,778.31 $11,701.40
7/21/97 $11,507.60 $11,640.40 $11,612.51
7/22/97 $11,861.50 $11,997.71 $11,821.36
7/23/97 $11,853.80 $12,010.03 $11,850.01
7/24/97 $11,809.00 $11,964.39 $11,861.20
7/25/97 $11,773.40 $11,936.68 $11,864.60
7/28/97 $11,657.60 $11,824.39 $11,818.87
7/29/97 $11,779.60 $11,964.50 $11,885.31
7/30/97 $11,946.00 $12,108.13 $12,004.22
7/31/97 $12,014.10 $12,174.66 $12,047.76
8/1/97 $12,029.00 $12,195.67 $12,051.69
8/4/97 $12,194.20 $12,362.17 $12,135.75
8/5/97 $12,329.20 $12,497.77 $12,257.30
8/6/97 $12,372.50 $12,557.27 $12,324.65
8/7/97 $12,307.30 $12,488.97 $12,277.33
8/8/97 $12,077.10 $12,262.53 $12,083.36
8/11/97 $11,932.50 $12,110.33 $11,994.32
8/12/97 $11,816.60 $11,995.95 $11,914.95
8/13/97 $11,903.60 $12,087.45 $11,969.07
8/14/97 $11,955.70 $12,136.28 $11,993.94
8/15/97 $11,640.20 $11,840.78 $11,807.53
8/18/97 $11,810.90 $11,982.10 $11,864.15
8/19/97 $12,174.00 $12,330.28 $12,099.92
8/20/97 $12,433.10 $12,593.01 $12,311.50
8/21/97 $12,121.20 $12,303.23 $12,150.18
8/22/97 $12,036.70 $12,217.33 $12,084.65
8/25/97 $11,986.20 $12,183.13 $12,106.42
8/26/97 $11,804.50 $12,022.68 $12,028.79
8/27/97 $11,790.50 $12,008.16 $12,060.84
8/28/97 $11,551.00 $11,773.69 $11,953.35
8/29/97 $11,593.50 $11,813.28 $11,998.70
9/2/97 $11,909.00 $12,127.48 $12,231.29
9/3/97 $11,871.60 $12,102.19 $12,232.43
9/4/97 $11,936.60 $12,161.36 $12,280.73
9/5/97 $11,985.10 $12,219.97 $12,364.94
9/8/97 $12,054.10 $12,293.33 $12,437.35
9/9/97 $12,160.70 $12,391.32 $12,519.52
9/10/97 $11,873.70 $12,129.79 $12,391.24
9/11/97 $11,895.80 $12,153.00 $12,395.85
9/12/97 $11,901.10 $12,164.11 $12,467.44
9/15/97 $11,607.30 $11,880.59 $12,358.51
9/16/97 $12,013.00 $12,279.03 $12,613.10
9/17/97 $11,916.00 $12,192.26 $12,597.00
9/18/97 $11,912.20 $12,199.52 $12,623.84
9/19/97 $12,017.20 $12,302.79 $12,702.00
9/22/97 $12,071.40 $12,357.44 $12,770.71
9/23/97 $12,203.00 $12,482.71 $12,830.50
9/24/97 $11,990.80 $12,271.99 $12,755.29
9/25/97 $11,884.60 $12,168.62 $12,690.89
9/26/97 $11,883.00 $12,172.35 $12,716.21
9/29/97 $12,001.20 $12,303.78 $12,812.51
9/30/97 $11,758.20 $12,066.23 $12,742.29
10/1/97 $11,819.50 $12,119.90 $12,777.14
10/2/97 $11,937.40 $12,239.11 $12,868.68
10/3/97 $12,060.70 $12,366.13 $12,970.42
10/6/97 $12,073.90 $12,382.52 $13,016.08
10/7/97 $12,237.40 $12,545.39 $13,132.19
10/8/97 $12,286.60 $12,595.98 $13,166.20
10/9/97 $12,317.90 $12,627.54 $13,197.04
10/10/97 $12,201.60 $12,512.73 $13,145.49
10/13/97 $12,229.50 $12,542.53 $13,168.85
10/14/97 $12,126.80 $12,443.00 $13,098.32
10/15/97 $11,985.20 $12,307.07 $13,027.11
10/16/97 $11,770.60 $12,090.53 $12,847.89
10/17/97 $11,509.30 $11,823.73 $12,599.87
10/20/97 $11,650.20 $11,968.13 $12,740.47
10/21/97 $11,900.50 $12,213.38 $12,945.25
10/22/97 $11,757.60 $12,083.16 $12,911.54
10/23/97 $11,508.50 $11,818.56 $12,633.13
10/24/97 $11,322.00 $11,628.19 $12,479.46
10/27/97 $10,491.70 $10,764.99 $11,603.89
10/28/97 $11,236.20 $11,514.81 $12,117.38
10/29/97 $11,098.40 $11,324.88 $12,115.41
10/30/97 $10,774.50 $11,005.29 $11,870.88
10/31/97 $11,003.70 $11,213.36 $12,046.25
11/3/97 $11,345.80 $11,555.39 $12,321.17
11/4/97 $11,302.60 $11,521.30 $12,330.01
11/5/97 $11,287.60 $11,513.60 $12,376.73
11/6/97 $11,137.70 $11,373.38 $12,271.73
11/7/97 $11,082.90 $11,309.04 $12,112.69
11/10/97 $10,885.10 $11,124.50 $12,024.40
11/11/97 $10,882.00 $11,118.13 $11,980.10
11/12/97 $10,527.90 $10,779.18 $11,654.01
11/13/97 $10,818.20 $11,029.70 $11,775.10
11/14/97 $11,066.80 $11,303.87 $11,969.90
11/17/97 $11,309.60 $11,544.17 $12,201.21
11/18/97 $11,160.10 $11,396.91 $12,097.88
11/19/97 $11,186.40 $11,427.82 $12,103.77
11/20/97 $11,454.30 $11,684.83 $12,295.32
11/21/97 $11,385.30 $11,619.95 $12,251.40
11/24/97 $11,090.10 $11,329.94 $11,996.21
11/25/97 $11,190.00 $11,416.16 $12,011.70
11/26/97 $11,239.20 $11,484.12 $12,052.97
11/28/97 $11,307.40 $11,553.08 $12,098.71
12/1/97 $11,623.90 $11,868.93 $12,326.76
12/2/97 $11,328.40 $11,570.24 $12,142.70
12/3/97 $11,423.20 $11,675.26 $12,208.92
12/4/97 $11,323.30 $11,577.82 $12,195.99
12/5/97 $11,514.20 $11,770.39 $12,350.80
12/8/97 $11,656.70 $11,909.51 $12,484.14
12/9/97 $11,297.40 $11,554.84 $12,249.89
12/10/97 $11,120.10 $11,362.82 $12,068.92
12/11/97 $10,776.30 $11,018.27 $11,781.15
12/12/97 $10,520.30 $10,761.03 $11,615.15
12/15/97 $10,580.30 $10,825.81 $11,615.00
12/16/97 $10,728.30 $10,968.01 $11,739.27
12/17/97 $10,579.50 $10,817.56 $11,696.71
12/18/97 $10,398.70 $10,632.22 $11,513.94
12/19/97 $10,446.20 $10,666.56 $11,525.65
12/22/97 $10,507.50 $10,730.24 $11,580.98
12/23/97 $10,214.80 $10,442.98 $11,413.55
12/24/97 $10,091.00 $10,326.63 $11,335.09
12/26/97 $10,256.10 $10,492.47 $11,424.66
12/29/97 $10,534.40 $10,761.47 $11,621.73
12/30/97 $10,751.40 $10,980.66 $11,830.21
12/31/97 $10,653.50 $10,896.41 $11,870.42
1/2/98 $10,845.08 $11,088.10 $11,954.93
1/5/98 $10,950.84 $11,189.17 $12,050.10
1/6/98 $10,823.35 $11,066.77 $11,944.43
1/7/98 $10,655.30 $10,900.70 $11,805.04
1/8/98 $10,701.29 $10,937.54 $11,758.47
1/9/98 $10,288.75 $10,515.79 $11,362.98
1/12/98 $10,454.59 $10,680.53 $11,395.94
1/13/98 $10,708.31 $10,943.15 $11,653.32
1/14/98 $10,719.17 $10,957.67 $11,707.22
1/15/98 $10,706.33 $10,948.98 $11,694.37
1/16/98 $10,815.34 $11,062.15 $11,813.96
1/20/98 $11,046.57 $11,293.21 $12,020.02
1/21/98 $11,041.34 $11,289.25 $12,003.24
1/22/98 $10,978.25 $11,224.47 $11,916.99
1/23/98 $11,022.96 $11,266.70 $11,912.60
1/26/98 $10,931.27 $11,177.95 $11,803.22
1/27/98 $11,157.00 $11,390.87 $11,935.05
1/28/98 $11,459.03 $11,692.86 $12,176.34
1/29/98 $11,520.72 $11,756.43 $12,241.88
1/30/98 $11,547.95 $11,779.85 $12,240.89
2/2/98 $11,872.29 $12,108.24 $12,494.35
2/3/98 $11,982.84 $12,221.18 $12,596.02
2/4/98 $12,125.30 $12,366.13 $12,702.60
2/5/98 $12,008.47 $12,260.77 $12,675.84
2/6/98 $12,226.27 $12,474.79 $12,807.75
2/9/98 $12,090.82 $12,347.22 $12,778.12
2/10/98 $12,280.22 $12,534.94 $12,918.79
2/11/98 $12,271.56 $12,524.17 $12,915.09
2/12/98 $12,343.13 $12,590.04 $12,958.86
2/13/98 $12,241.83 $12,500.85 $12,929.22
2/17/98 $12,160.18 $12,412.21 $12,876.39
2/18/98 $12,294.76 $12,545.39 $12,969.36
2/19/98 $12,461.92 $12,721.46 $13,054.63
2/20/98 $12,501.21 $12,754.24 $13,063.10
2/23/98 $12,795.70 $13,037.97 $13,241.72
2/24/98 $12,650.49 $12,893.58 $13,143.07
2/25/98 $12,964.20 $13,201.40 $13,352.99
2/26/98 $13,037.24 $13,273.76 $13,433.34
2/27/98 $12,897.16 $13,132.55 $13,383.45
3/2/98 $12,706.46 $12,950.65 $13,292.97
3/3/98 $12,679.40 $12,930.09 $13,282.39
3/4/98 $12,725.97 $12,973.86 $13,301.74
3/5/98 $12,124.80 $12,392.42 $12,940.56
3/6/98 $12,523.52 $12,791.41 $13,254.79
3/9/98 $12,126.17 $12,409.35 $13,040.65
3/10/98 $12,354.08 $12,631.94 $13,217.15
3/11/98 $12,402.18 $12,689.79 $13,280.19
3/12/98 $12,504.81 $12,793.17 $13,334.69
3/13/98 $12,565.27 $12,859.37 $13,392.14
3/16/98 $12,693.00 $12,979.03 $13,517.02
3/17/98 $12,550.16 $12,843.98 $13,449.89
3/18/98 $12,644.00 $12,944.28 $13,517.78
3/19/98 $12,734.93 $13,044.90 $13,606.22
3/20/98 $12,545.93 $12,860.91 $13,524.43
3/23/98 $12,662.98 $12,968.14 $13,549.75
3/24/98 $12,866.91 $13,173.03 $13,700.40
3/25/98 $13,051.56 $13,360.09 $13,791.64
3/26/98 $13,096.03 $13,394.41 $13,822.10
3/27/98 $13,022.41 $13,325.12 $13,784.91
3/30/98 $12,964.18 $13,270.13 $13,747.72
3/31/98 $13,119.10 $13,424.32 $13,876.08
4/1/98 $13,195.14 $13,509.55 $13,966.63
4/2/98 $13,213.36 $13,529.02 $14,006.70
4/3/98 $13,254.05 $13,567.29 $14,025.14
4/6/98 $12,935.00 $13,256.17 $13,826.64
4/7/98 $12,678.08 $13,000.58 $13,596.62
4/8/98 $12,783.84 $13,098.79 $13,659.36
4/9/98 $12,840.66 $13,163.02 $13,759.36
4/13/98 $12,905.21 $13,229.77 $13,794.97
4/14/98 $13,006.69 $13,341.40 $13,931.64
4/15/98 $13,205.21 $13,541.99 $14,084.56
4/16/98 $13,163.66 $13,499.87 $14,046.61
4/17/98 $13,195.03 $13,540.78 $14,109.80
4/20/98 $13,430.10 $13,781.19 $14,265.07
4/21/98 $13,615.97 $13,963.64 $14,391.53
4/22/98 $13,857.61 $14,196.79 $14,495.39
4/23/98 $13,497.95 $13,841.35 $14,221.60
4/24/98 $13,404.03 $13,748.53 $14,127.64
4/27/98 $13,079.84 $13,417.61 $13,759.89
4/28/98 $13,093.08 $13,444.56 $13,846.52
4/29/98 $13,273.31 $13,632.17 $13,996.72
4/30/98 $13,355.38 $13,726.31 $14,123.49
5/1/98 $13,386.28 $13,763.82 $14,161.51
5/4/98 $13,433.36 $13,811.00 $14,202.48
5/5/98 $13,338.03 $13,716.97 $14,097.03
5/6/98 $13,283.21 $13,661.76 $14,034.82
5/7/98 $13,070.35 $13,446.54 $13,871.99
5/8/98 $13,412.27 $13,791.31 $14,092.95
5/11/98 $13,237.42 $13,611.39 $13,969.73
5/12/98 $13,444.94 $13,817.48 $14,061.12
5/13/98 $13,512.72 $13,890.84 $14,106.63
5/14/98 $13,547.97 $13,924.05 $14,100.43
5/15/98 $13,375.06 $13,741.38 $13,959.91
5/18/98 $13,300.48 $13,664.51 $13,845.39
5/19/98 $13,442.26 $13,808.47 $13,953.10
5/20/98 $13,245.79 $13,612.27 $13,846.37
5/21/98 $13,097.55 $13,457.75 $13,765.03
5/22/98 $12,997.77 $13,352.51 $13,644.16
5/26/98 $12,847.19 $13,198.43 $13,440.75
5/27/98 $12,951.38 $13,301.15 $13,463.50
5/28/98 $13,000.06 $13,360.20 $13,565.70
5/29/98 $12,740.27 $13,109.90 $13,446.64
6/1/98 $12,458.13 $12,818.24 $13,204.38
6/2/98 $12,701.28 $13,055.79 $13,317.53
6/3/98 $12,440.59 $12,800.98 $13,170.28
6/4/98 $12,793.66 $13,144.21 $13,379.22
6/5/98 $12,920.47 $13,270.79 $13,477.26
6/8/98 $12,905.92 $13,274.31 $13,513.92
6/9/98 $13,081.87 $13,455.33 $13,612.11
6/10/98 $12,824.14 $13,189.41 $13,404.16
6/11/98 $12,673.55 $13,033.36 $13,226.52
6/12/98 $12,698.19 $13,054.03 $13,191.00
6/15/98 $12,559.68 $12,906.44 $12,969.51
6/16/98 $12,976.06 $13,316.98 $13,252.00
6/17/98 $13,114.94 $13,461.93 $13,427.97
6/18/98 $13,152.86 $13,497.67 $13,400.00
6/19/98 $13,290.46 $13,633.82 $13,464.94
6/22/98 $13,559.50 $13,900.19 $13,650.36
6/23/98 $13,987.68 $14,323.15 $13,943.28
6/24/98 $14,293.10 $14,639.55 $14,194.16
6/25/98 $14,068.86 $14,422.24 $14,084.48
6/26/98 $14,174.94 $14,527.16 $14,131.95
6/29/98 $14,380.61 $14,733.58 $14,294.85
6/30/98 $14,357.40 $14,707.52 $14,322.52
7/1/98 $14,551.55 $14,914.27 $14,471.58
7/2/98 $14,285.89 $14,654.62 $14,316.92
7/6/98 $14,391.97 $14,765.15 $14,433.86
7/7/98 $14,437.69 $14,806.28 $14,423.58
7/8/98 $14,785.36 $15,152.92 $14,629.79
7/9/98 $14,838.41 $15,212.09 $14,663.28
7/10/98 $14,932.48 $15,298.86 $14,687.62
7/13/98 $15,258.74 $15,622.96 $14,857.62
7/14/98 $15,237.30 $15,596.01 $14,879.39
7/15/98 $15,582.56 $15,941.89 $15,076.91
7/16/98 $15,610.76 $15,975.32 $15,122.42
7/17/98 $15,737.94 $16,100.14 $15,184.40
7/20/98 $15,755.92 $16,121.26 $15,225.90
7/21/98 $15,381.84 $15,747.34 $14,960.50
7/22/98 $15,377.42 $15,732.93 $14,889.52
7/23/98 $15,118.53 $15,460.41 $14,628.51
7/24/98 $15,151.16 $15,491.21 $14,596.53
7/27/98 $15,350.21 $15,686.63 $14,613.69
7/28/98 $14,973.73 $15,322.72 $14,336.05
7/29/98 $14,829.82 $15,177.56 $14,222.36
7/30/98 $15,296.21 $15,639.13 $14,510.28
7/31/98 $14,797.70 $15,146.54 $14,153.57
8/3/98 $14,719.10 $15,049.54 $13,992.64
8/4/98 $14,156.93 $14,486.47 $13,497.82
8/5/98 $14,303.83 $14,624.60 $13,517.17
8/6/98 $14,697.21 $15,021.28 $13,829.44
8/7/98 $14,660.59 $15,001.48 $13,959.91
8/10/98 $14,644.03 $14,988.40 $13,902.76
8/11/98 $14,290.42 $14,628.23 $13,551.19
8/12/98 $14,551.23 $14,898.00 $13,799.35
8/13/98 $14,377.16 $14,719.07 $13,625.57
8/14/98 $14,282.69 $14,627.24 $13,532.21
8/17/98 $14,702.63 $15,042.40 $13,742.73
8/18/98 $15,057.31 $15,410.27 $14,023.02
8/19/98 $15,028.51 $15,377.49 $13,929.07
8/20/98 $15,025.66 $15,376.83 $13,851.66
8/21/98 $14,773.72 $15,119.16 $13,588.30
8/24/98 $14,729.81 $15,076.82 $13,536.98
8/25/98 $14,926.46 $15,268.51 $13,592.53
8/26/98 $14,776.78 $15,111.24 $13,365.46
8/27/98 $14,102.51 $14,423.67 $12,747.73
8/28/98 $13,604.38 $13,912.39 $12,394.49
8/31/98 $12,242.77 $12,540.99 $11,332.97
9/1/98 $13,086.40 $13,362.73 $11,906.25
9/2/98 $13,151.90 $13,432.90 $12,040.50
9/3/98 $13,018.70 $13,295.65 $11,881.84
9/4/98 $12,970.40 $13,256.61 $11,841.47
9/8/98 $13,841.00 $14,148.07 $12,554.60
9/9/98 $13,582.80 $13,876.43 $12,280.12
9/10/98 $13,291.60 $13,586.09 $11,983.66
9/11/98 $13,881.80 $14,189.09 $12,409.31
9/14/98 $14,071.80 $14,387.38 $12,591.11
9/15/98 $14,225.80 $14,562.90 $12,684.99
9/16/98 $14,309.10 $14,642.74 $12,774.19
9/17/98 $13,878.30 $14,206.58 $12,444.16
9/18/98 $13,968.20 $14,304.57 $12,576.59
9/21/98 $14,271.80 $14,601.50 $12,702.53
9/22/98 $14,356.10 $14,694.87 $12,833.83
9/23/98 $14,987.10 $15,337.79 $13,306.05
9/24/98 $14,569.10 $14,917.79 $13,004.21
9/25/98 $14,941.80 $15,287.64 $13,179.96
9/28/98 $14,872.00 $15,212.42 $13,146.93
9/29/98 $14,889.00 $15,230.45 $13,107.85
9/30/98 $14,467.52 $14,797.04 $12,803.89
10/1/98 $13,682.19 $14,008.07 $12,187.75
10/2/98 $13,704.79 $14,037.77 $12,207.78
10/5/98 $12,951.33 $13,281.57 $11,615.98
10/6/98 $12,702.88 $13,030.39 $11,420.96
10/7/98 $12,340.53 $12,659.22 $11,056.01
10/8/98 $12,107.54 $12,414.96 $10,727.26
10/9/98 $12,860.33 $13,173.68 $11,281.87
10/12/98 $13,335.63 $13,674.41 $11,686.96
10/13/98 $12,934.26 $13,272.99 $11,410.07
10/14/98 $13,245.19 $13,589.39 $11,648.34
10/15/98 $13,934.34 $14,293.13 $12,177.77
10/16/98 $13,863.55 $14,229.89 $12,252.91
10/19/98 $14,032.42 $14,408.71 $12,462.90
10/20/98 $13,734.25 $14,112.44 $12,390.79
10/21/98 $14,277.97 $14,649.34 $12,659.59
10/22/98 $14,527.25 $14,903.83 $12,870.41
10/23/98 $14,354.74 $14,743.37 $12,804.05
10/26/98 $14,661.26 $15,054.93 $13,039.28
10/27/98 $14,488.80 $14,883.48 $12,983.73
10/28/98 $14,773.88 $15,176.24 $13,132.79
10/29/98 $14,944.42 $15,355.94 $13,282.76
10/30/98 $14,978.71 $15,402.35 $13,390.10
11/2/98 $15,164.43 $15,603.27 $13,613.25
11/3/98 $14,978.85 $15,415.65 $13,518.91
11/4/98 $15,330.25 $15,770.55 $13,784.54
11/5/98 $15,428.65 $15,858.97 $13,886.81
11/6/98 $15,605.85 $16,038.23 $14,033.91
11/9/98 $15,708.22 $16,140.40 $14,067.85
11/10/98 $15,781.60 $16,248.72 $14,102.40
11/11/98 $15,847.97 $16,284.24 $14,075.86
11/12/98 $15,692.42 $16,128.41 $13,992.34
11/13/98 $15,671.62 $16,113.89 $13,969.13
11/16/98 $15,785.96 $16,228.05 $14,072.61
11/17/98 $16,043.21 $16,480.44 $14,199.91
11/18/98 $16,215.49 $16,660.14 $14,342.93
11/19/98 $16,459.70 $16,908.25 $14,511.04
11/20/98 $16,534.02 $16,982.70 $14,575.52
11/23/98 $17,022.73 $17,475.83 $14,947.50
11/24/98 $16,928.16 $17,385.32 $14,860.27
11/25/98 $17,114.69 $17,579.43 $15,006.39
11/27/98 $17,442.41 $17,907.93 $15,242.46
11/30/98 $16,670.56 $17,133.81 $14,736.75
12/1/98 $17,498.01 $17,953.90 $15,146.53
12/2/98 $17,341.52 $17,806.09 $15,081.90
12/3/98 $16,843.44 $17,307.79 $14,772.96
12/4/98 $17,462.04 $17,926.18 $15,142.07
12/7/98 $17,967.39 $18,441.75 $15,425.39
12/8/98 $17,873.84 $18,345.74 $15,380.86
12/9/98 $18,060.89 $18,535.12 $15,499.32
12/10/98 $17,707.70 $18,176.38 $15,238.83
12/11/98 $17,952.30 $18,421.08 $15,339.74
12/14/98 $17,290.67 $17,751.10 $14,868.13
12/15/98 $17,829.12 $18,297.57 $15,213.43
12/16/98 $17,750.57 $18,215.09 $15,188.94
12/17/98 $18,109.27 $18,581.86 $15,449.88
12/18/98 $18,585.35 $19,080.82 $15,769.33
12/21/98 $19,159.56 $19,656.00 $15,928.82
12/22/98 $18,956.21 $19,441.76 $16,032.69
12/23/98 $19,534.36 $20,004.18 $16,422.43
12/24/98 $19,364.70 $19,862.09 $16,350.55
12/28/98 $19,540.58 $20,059.50 $16,481.09
12/29/98 $19,528.85 $20,052.02 $16,492.20
12/30/98 $19,340.52 $19,916.31 $16,380.18
12/31/98 $19,570.00 $20,191.69 $16,574.75
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
----------------------------------------
FISCAL YEAR
ENDED SINCE INCEPTION
12-31-98 (5-7-97) TO 12-31-98
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
OTC Fund 83.76% 95.70%
NASDAQ 100 Index-TM- 85.31% 101.92%
NASDAQ Composite Index-TM- 39.63% 65.75%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE NASDAQ COMPOSITE
INDEX-TM- AND THE NASDAQ 100 INDEX-TM- ARE UNMANAGED STOCK INDICES AND, UNLIKE
THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR
REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND
REINVESTED DIVIDENDS AND CAPITAL GAINS.
5
<PAGE>
THE PRECIOUS METALS FUND
BENCHMARK: PHILADELPHIA STOCK EXCHANGE GOLD/SILVER INDEX-TM- (XAU INDEX)
To achieve its objective, the Precious Metals Fund primarily invested in the 10
stocks that make up its benchmark index. Gold resumed its downward trend in 1998
as central banks continued to sell off reserves and the Asian crisis hurt
demand. With inflation running below 2%, gold has lost its luster as a hedge
against inflation. The total return of the Precious Metals Fund was -17.24%
compared to the XAU Index, which was -12.43% for the period ending December 31,
1998.
CUMULATIVE FUND PERFORMANCE: MAY 29, 1997--DECEMBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PRECIOUS METALS FUND XAU INDEX S&P 500 INDEX
<S> <C> <C> <C>
5/29/97 $10,000.00 $10,000.00 $10,000.00
5/30/97 $9,794.20 $9,821.11 $10,049.76
6/2/97 $9,550.40 $9,579.14 $10,027.01
6/3/97 $9,384.00 $9,417.19 $10,016.59
6/4/97 $9,199.80 $9,237.36 $9,952.97
6/5/97 $9,495.30 $9,547.12 $9,992.30
6/6/97 $9,476.80 $9,552.77 $10,165.03
6/9/97 $9,631.10 $9,719.42 $10,223.08
6/10/97 $9,574.90 $9,669.52 $10,251.04
6/11/97 $9,679.60 $9,781.56 $10,301.99
6/12/97 $9,740.80 $9,848.41 $10,466.54
6/13/97 $9,702.80 $9,824.88 $10,582.76
6/16/97 $9,538.00 $9,657.28 $10,590.23
6/17/97 $9,484.00 $9,606.44 $10,596.51
6/18/97 $9,232.30 $9,351.29 $10,533.36
6/19/97 $9,345.40 $9,471.80 $10,638.68
6/20/97 $9,055.00 $9,170.51 $10,647.10
6/23/97 $8,887.80 $9,013.28 $10,409.20
6/24/97 $8,790.70 $8,919.12 $10,619.14
6/25/97 $8,972.40 $9,108.37 $10,532.06
6/26/97 $8,995.80 $9,129.08 $10,469.15
6/27/97 $8,841.50 $8,973.73 $10,511.92
6/30/97 $8,865.00 $9,001.04 $10,486.45
7/1/97 $9,013.80 $9,155.45 $10,556.23
7/2/97 $8,845.50 $8,981.26 $10,710.24
7/3/97 $8,780.60 $8,916.30 $10,862.95
7/7/97 $8,077.10 $8,192.26 $10,807.03
7/8/97 $8,300.90 $8,440.82 $10,884.63
7/9/97 $8,223.00 $8,362.68 $10,751.82
7/10/97 $8,488.90 $8,636.66 $10,825.75
7/11/97 $8,695.60 $8,849.45 $10,860.11
7/14/97 $8,420.60 $8,566.05 $10,880.25
7/15/97 $8,324.10 $8,465.30 $10,967.68
7/16/97 $8,413.60 $8,557.57 $11,095.99
7/17/97 $8,712.80 $8,866.40 $11,036.99
7/18/97 $8,979.70 $9,141.32 $10,843.76
7/21/97 $8,722.80 $8,879.58 $10,815.80
7/22/97 $8,757.70 $8,917.24 $11,065.06
7/23/97 $8,665.90 $8,823.09 $11,095.63
7/24/97 $8,698.60 $8,858.86 $11,139.70
7/25/97 $8,793.90 $8,958.67 $11,122.05
7/28/97 $8,905.10 $9,066.00 $11,094.33
7/29/97 $8,869.90 $9,032.11 $11,163.52
7/30/97 $9,031.20 $9,196.87 $11,281.99
7/31/97 $9,053.00 $9,219.47 $11,305.68
8/1/97 $9,067.90 $9,236.42 $11,220.97
8/4/97 $9,017.00 $9,183.69 $11,258.41
8/5/97 $8,817.30 $8,979.38 $11,282.94
8/6/97 $8,996.20 $9,163.92 $11,377.12
8/7/97 $9,079.50 $9,248.66 $11,268.96
8/8/97 $9,467.10 $9,647.87 $11,059.85
8/11/97 $9,486.90 $9,683.65 $11,100.84
8/12/97 $9,392.50 $9,583.84 $10,976.80
8/13/97 $9,472.10 $9,667.64 $10,923.37
8/14/97 $9,213.50 $9,408.72 $10,955.95
8/15/97 $9,279.50 $9,479.33 $10,672.09
8/18/97 $9,250.60 $9,462.39 $10,810.47
8/19/97 $9,117.70 $9,328.69 $10,970.64
8/20/97 $9,151.60 $9,358.82 $11,128.68
8/21/97 $9,242.70 $9,452.97 $10,959.27
8/22/97 $9,349.40 $9,565.01 $10,941.38
8/25/97 $9,279.70 $9,514.17 $10,901.34
8/26/97 $9,252.70 $9,486.87 $10,816.75
8/27/97 $9,101.50 $9,333.40 $10,824.80
8/28/97 $9,134.60 $9,368.23 $10,705.98
8/29/97 $9,075.30 $9,308.92 $10,656.22
9/2/97 $9,075.90 $9,309.86 $10,989.24
9/3/97 $9,007.80 $9,244.89 $10,992.44
9/4/97 $9,020.50 $9,262.78 $11,028.22
9/5/97 $8,981.00 $9,226.06 $11,006.66
9/8/97 $8,702.40 $8,942.66 $11,032.13
9/9/97 $8,769.10 $9,011.39 $11,060.80
9/10/97 $8,747.10 $8,990.68 $10,887.95
9/11/97 $8,619.80 $8,860.75 $10,811.65
9/12/97 $8,614.20 $8,858.86 $10,945.76
9/15/97 $8,484.30 $8,727.05 $10,896.72
9/16/97 $8,406.50 $8,653.61 $11,203.20
9/17/97 $8,457.60 $8,732.70 $11,171.93
9/18/97 $8,713.70 $8,951.13 $11,222.75
9/19/97 $8,676.40 $8,929.48 $11,260.90
9/22/97 $8,498.10 $8,752.47 $11,319.19
9/23/97 $8,678.40 $8,939.84 $11,277.72
9/24/97 $8,967.80 $9,236.42 $11,189.46
9/25/97 $9,458.00 $9,737.31 $11,111.62
9/26/97 $9,324.30 $9,625.27 $11,198.23
9/29/97 $9,619.70 $9,928.44 $11,294.43
9/30/97 $9,991.70 $10,309.76 $11,222.63
10/1/97 $9,862.20 $10,177.95 $11,318.95
10/2/97 $9,774.50 $10,097.92 $11,378.78
10/3/97 $9,945.10 $10,275.87 $11,432.92
10/6/97 $9,701.40 $10,033.90 $11,523.67
10/7/97 $9,649.20 $9,981.17 $11,647.24
10/8/97 $9,933.10 $10,277.75 $11,537.30
10/9/97 $9,604.50 $9,936.92 $11,499.15
10/10/97 $9,759.10 $10,101.69 $11,456.02
10/13/97 $9,744.70 $10,088.50 $11,469.29
10/14/97 $9,609.10 $9,949.16 $11,495.12
10/15/97 $9,515.70 $9,855.95 $11,441.10
10/16/97 $9,320.80 $9,645.04 $11,317.06
10/17/97 $9,223.60 $9,545.24 $11,185.67
10/20/97 $9,048.60 $9,361.64 $11,321.32
10/21/97 $9,289.80 $9,614.91 $11,518.81
10/22/97 $9,535.30 $9,880.43 $11,473.91
10/23/97 $9,599.20 $9,947.27 $11,263.03
10/24/97 $8,760.70 $9,086.71 $11,155.81
10/27/97 $7,765.20 $8,063.27 $10,386.22
10/28/97 $7,927.10 $8,404.11 $10,914.25
10/29/97 $7,685.90 $8,126.35 $10,889.49
10/30/97 $8,025.20 $8,517.09 $10,706.09
10/31/97 $7,810.20 $8,277.00 $10,835.70
11/3/97 $7,839.70 $8,310.89 $11,124.42
11/4/97 $7,784.90 $8,247.81 $11,145.39
11/5/97 $7,628.00 $8,075.51 $11,169.08
11/6/97 $7,521.50 $7,978.53 $11,113.05
11/7/97 $7,341.30 $7,663.12 $10,988.41
11/10/97 $7,281.50 $7,609.45 $10,912.83
11/11/97 $7,280.40 $7,608.51 $10,944.22
11/12/97 $7,014.70 $7,172.58 $10,733.11
11/13/97 $7,180.40 $7,418.32 $10,859.87
11/14/97 $7,041.70 $7,254.50 $10,998.37
11/17/97 $7,006.00 $7,181.06 $11,209.84
11/18/97 $6,942.10 $7,083.14 $11,115.42
11/19/97 $6,872.00 $7,014.41 $11,190.76
11/20/97 $7,012.40 $7,219.66 $11,361.25
11/21/97 $7,001.40 $7,205.54 $11,409.94
11/24/97 $6,865.50 $7,014.41 $11,215.41
11/25/97 $6,763.80 $6,862.82 $11,264.57
11/26/97 $6,633.10 $6,687.69 $11,274.29
11/28/97 $6,605.80 $6,667.92 $11,318.83
12/1/97 $6,570.10 $6,617.08 $11,548.31
12/2/97 $6,588.80 $6,639.68 $11,511.71
12/3/97 $6,489.00 $6,497.50 $11,572.01
12/4/97 $6,197.30 $6,100.18 $11,528.53
12/5/97 $6,368.90 $6,335.56 $11,655.17
12/8/97 $6,268.70 $6,199.98 $11,638.35
12/9/97 $6,122.00 $6,044.63 $11,560.28
12/10/97 $6,371.60 $6,367.57 $11,489.31
12/11/97 $6,257.70 $6,208.45 $11,313.38
12/12/97 $6,397.80 $6,377.93 $11,295.02
12/15/97 $6,492.20 $6,488.09 $11,413.49
12/16/97 $6,457.40 $6,453.25 $11,468.58
12/17/97 $7,035.70 $7,043.59 $11,438.96
12/18/97 $6,850.30 $6,854.35 $11,317.65
12/19/97 $6,746.40 $6,705.58 $11,216.71
12/22/97 $6,794.20 $6,755.48 $11,298.69
12/23/97 $6,964.90 $6,928.73 $11,125.96
12/24/97 $7,133.80 $7,101.03 $11,049.90
12/26/97 $7,052.70 $7,021.00 $11,094.45
12/29/97 $6,834.30 $6,799.74 $11,294.66
12/30/97 $7,115.30 $7,085.96 $11,501.75
12/31/97 $7,015.20 $6,985.22 $11,496.90
1/2/98 $7,098.36 $7,093.49 $11,551.04
1/5/98 $6,682.73 $6,648.15 $11,575.56
1/6/98 $6,521.10 $6,500.33 $11,451.28
1/7/98 $6,607.56 $6,585.07 $11,420.72
1/8/98 $6,208.82 $6,194.33 $11,326.41
1/9/98 $6,032.48 $5,992.84 $10,990.55
1/12/98 $5,856.32 $5,789.47 $11,127.03
1/13/98 $6,310.11 $6,262.12 $11,279.97
1/14/98 $6,329.74 $6,281.89 $11,348.92
1/15/98 $6,602.53 $6,561.53 $11,263.51
1/16/98 $6,809.14 $6,762.08 $11,391.22
1/20/98 $6,573.31 $6,518.22 $11,593.69
1/21/98 $6,699.02 $6,654.74 $11,501.04
1/22/98 $6,528.15 $6,483.38 $11,409.35
1/23/98 $7,185.79 $7,167.87 $11,344.66
1/26/98 $7,198.96 $7,180.11 $11,337.20
1/27/98 $7,300.72 $7,301.57 $11,480.19
1/28/98 $7,423.51 $7,435.27 $11,580.18
1/29/98 $7,073.52 $7,100.08 $11,675.32
1/30/98 $7,036.89 $7,058.66 $11,613.59
2/2/98 $7,052.64 $7,064.31 $11,862.26
2/3/98 $6,661.23 $6,672.63 $11,918.18
2/4/98 $7,045.61 $7,061.48 $11,928.96
2/5/98 $7,139.42 $7,151.87 $11,889.16
2/6/98 $7,161.00 $7,172.58 $11,994.83
2/9/98 $7,280.43 $7,286.51 $11,974.46
2/10/98 $7,119.85 $7,126.45 $12,072.43
2/11/98 $7,004.28 $7,005.93 $12,084.28
2/12/98 $7,088.98 $7,100.08 $12,133.21
2/13/98 $7,204.81 $7,222.48 $12,085.23
2/17/98 $6,897.93 $6,909.90 $12,116.86
2/18/98 $6,871.66 $6,863.76 $12,227.04
2/19/98 $6,811.08 $6,809.15 $12,182.26
2/20/98 $6,679.72 $6,682.05 $12,252.51
2/23/98 $6,559.87 $6,553.06 $12,299.07
2/24/98 $6,480.60 $6,474.91 $12,209.27
2/25/98 $6,515.91 $6,510.69 $12,355.46
2/26/98 $6,861.30 $6,859.05 $12,423.82
2/27/98 $7,105.33 $7,103.85 $12,431.76
3/2/98 $7,076.58 $7,077.49 $12,412.33
3/3/98 $6,956.56 $6,956.97 $12,463.51
3/4/98 $6,969.07 $6,966.39 $12,407.95
3/5/98 $6,879.63 $6,881.65 $12,262.34
3/6/98 $7,034.24 $7,038.89 $12,506.99
3/9/98 $7,245.19 $7,251.67 $12,464.81
3/10/98 $7,351.33 $7,359.01 $12,608.40
3/11/98 $7,134.43 $7,142.45 $12,658.40
3/12/98 $7,111.04 $7,119.86 $12,675.58
3/13/98 $7,197.71 $7,209.30 $12,659.82
3/16/98 $7,077.02 $7,091.61 $12,786.35
3/17/98 $6,838.80 $6,854.35 $12,800.33
3/18/98 $6,815.12 $6,831.75 $12,860.39
3/19/98 $6,756.96 $6,773.37 $12,910.39
3/20/98 $6,686.28 $6,704.64 $13,021.99
3/23/98 $7,207.01 $7,228.13 $12,979.22
3/24/98 $7,127.03 $7,148.10 $13,098.88
3/25/98 $7,038.08 $7,059.60 $13,054.69
3/26/98 $7,596.15 $7,620.75 $13,041.42
3/27/98 $7,799.39 $7,835.42 $12,977.92
3/30/98 $7,700.49 $7,737.50 $12,955.53
3/31/98 $7,651.64 $7,689.48 $13,052.67
4/1/98 $7,526.66 $7,565.20 $13,128.49
4/2/98 $7,701.15 $7,741.27 $13,269.00
4/3/98 $8,179.74 $8,224.27 $13,300.87
4/6/98 $8,322.43 $8,369.27 $13,285.35
4/7/98 $8,036.78 $8,089.63 $13,145.08
4/8/98 $8,275.39 $8,341.96 $13,051.49
4/9/98 $7,972.88 $8,063.27 $13,158.35
4/13/98 $8,036.65 $8,130.12 $13,146.74
4/14/98 $7,852.50 $7,938.05 $13,218.53
4/15/98 $7,897.34 $7,986.07 $13,260.83
4/16/98 $7,956.46 $8,048.21 $13,128.73
4/17/98 $7,813.66 $7,900.39 $13,301.11
4/20/98 $7,786.85 $7,874.02 $13,312.13
4/21/98 $8,327.73 $8,424.82 $13,344.00
4/22/98 $8,648.16 $8,744.94 $13,387.36
4/23/98 $8,674.06 $8,775.07 $13,263.91
4/24/98 $8,365.41 $8,462.48 $13,125.53
4/27/98 $8,039.20 $8,136.71 $12,872.48
4/28/98 $8,213.94 $8,317.48 $12,855.54
4/29/98 $8,364.85 $8,505.79 $12,968.20
4/30/98 $8,173.52 $8,278.88 $13,171.38
5/1/98 $7,952.30 $8,067.98 $13,280.73
5/4/98 $7,973.27 $8,090.58 $13,293.41
5/5/98 $8,008.55 $8,128.24 $13,217.35
5/6/98 $7,932.45 $8,051.97 $13,090.23
5/7/98 $7,675.79 $7,791.17 $12,974.36
5/8/98 $7,795.60 $7,915.45 $13,128.38
5/11/98 $7,957.89 $8,081.16 $13,110.61
5/12/98 $7,689.45 $7,808.12 $13,219.01
5/13/98 $7,718.42 $7,839.19 $13,255.38
5/14/98 $7,759.12 $7,883.44 $13,237.73
5/15/98 $7,808.33 $7,936.16 $13,135.37
5/18/98 $7,527.14 $7,656.53 $13,100.89
5/19/98 $7,501.67 $7,632.05 $13,144.73
5/20/98 $7,503.77 $7,634.87 $13,257.75
5/21/98 $7,580.81 $7,711.14 $13,205.38
5/22/98 $7,497.94 $7,630.17 $13,155.98
5/26/98 $7,064.03 $7,188.59 $12,961.09
5/27/98 $6,928.93 $7,042.65 $12,939.89
5/28/98 $7,064.63 $7,182.94 $13,003.39
5/29/98 $6,916.80 $7,034.18 $12,923.18
6/1/98 $6,571.95 $6,682.05 $12,925.08
6/2/98 $6,781.28 $6,896.71 $12,949.36
6/3/98 $6,790.43 $6,907.07 $12,827.34
6/4/98 $6,741.63 $6,858.11 $12,970.69
6/5/98 $6,734.44 $6,852.46 $13,196.14
6/8/98 $7,085.72 $7,212.13 $13,218.18
6/9/98 $6,810.91 $6,928.73 $13,250.05
6/10/98 $6,677.91 $6,794.09 $13,177.42
6/11/98 $6,367.65 $6,479.62 $12,967.73
6/12/98 $6,307.89 $6,424.07 $13,018.20
6/15/98 $6,106.79 $6,215.99 $12,759.57
6/16/98 $6,342.33 $6,457.02 $12,884.92
6/17/98 $6,522.42 $6,640.62 $13,116.06
6/18/98 $6,390.18 $6,504.10 $13,107.41
6/19/98 $6,430.53 $6,547.41 $13,039.64
6/22/98 $6,303.78 $6,421.24 $13,070.09
6/23/98 $6,427.71 $6,548.35 $13,262.84
6/24/98 $6,270.23 $6,393.00 $13,421.48
6/25/98 $6,387.64 $6,513.51 $13,378.83
6/26/98 $6,424.76 $6,549.29 $13,425.27
6/29/98 $6,343.18 $6,469.26 $13,487.94
6/30/98 $6,612.32 $6,752.66 $13,432.85
7/1/98 $6,527.21 $6,659.45 $13,607.24
7/2/98 $6,342.30 $6,477.73 $13,581.89
7/6/98 $6,369.56 $6,505.04 $13,710.90
7/7/98 $6,585.46 $6,728.18 $13,679.51
7/8/98 $6,480.10 $6,628.38 $13,818.24
7/9/98 $6,280.66 $6,424.07 $13,725.71
7/10/98 $6,208.42 $6,352.51 $13,794.07
7/13/98 $6,171.07 $6,312.02 $13,804.26
7/14/98 $6,306.45 $6,451.37 $13,951.05
7/15/98 $6,253.99 $6,398.64 $13,918.23
7/16/98 $6,421.47 $6,571.89 $14,027.34
7/17/98 $6,466.32 $6,622.73 $14,059.69
7/20/98 $6,563.74 $6,726.30 $14,028.29
7/21/98 $6,389.44 $6,549.29 $13,802.84
7/22/98 $6,406.75 $6,568.12 $13,791.11
7/23/98 $6,174.48 $6,325.20 $13,502.87
7/24/98 $6,081.28 $6,228.23 $13,515.31
7/27/98 $5,985.48 $6,127.48 $13,591.96
7/28/98 $6,109.98 $6,257.41 $13,390.20
7/29/98 $5,982.20 $6,122.78 $13,330.61
7/30/98 $6,074.78 $6,220.69 $13,539.71
7/31/98 $5,790.86 $5,924.11 $13,276.82
8/3/98 $5,676.18 $5,804.54 $13,179.32
8/4/98 $5,757.67 $5,892.10 $12,701.64
8/5/98 $5,835.71 $5,974.96 $12,811.94
8/6/98 $5,835.39 $5,974.96 $12,909.08
8/7/98 $5,809.79 $5,950.48 $12,906.95
8/10/98 $5,806.52 $5,947.65 $12,832.20
8/11/98 $5,569.07 $5,700.97 $12,664.44
8/12/98 $5,546.57 $5,679.31 $12,844.99
8/13/98 $5,604.46 $5,738.63 $12,734.69
8/14/98 $5,519.77 $5,640.71 $12,590.63
8/17/98 $5,544.21 $5,679.31 $12,838.48
8/18/98 $5,575.66 $5,712.27 $13,046.16
8/19/98 $5,679.08 $5,819.60 $13,008.96
8/20/98 $5,853.65 $6,004.14 $12,932.42
8/21/98 $5,661.27 $5,805.48 $12,808.98
8/24/98 $5,584.07 $5,723.57 $12,891.43
8/25/98 $5,478.48 $5,612.47 $12,947.35
8/26/98 $5,304.60 $5,430.75 $12,844.64
8/27/98 $4,998.05 $5,105.92 $12,351.79
8/28/98 $4,746.48 $4,840.41 $12,170.05
8/31/98 $4,495.48 $4,603.14 $11,344.07
9/1/98 $4,708.80 $4,832.88 $11,778.98
9/2/98 $4,768.40 $4,869.60 $11,734.43
9/3/98 $5,337.60 $5,487.24 $11,637.05
9/4/98 $5,888.40 $6,090.76 $11,537.89
9/8/98 $5,805.80 $6,003.20 $12,125.15
9/9/98 $5,546.80 $5,728.27 $11,920.67
9/10/98 $6,170.30 $6,393.00 $11,612.52
9/11/98 $6,164.90 $6,393.00 $11,954.55
9/14/98 $6,074.60 $6,300.72 $12,199.32
9/15/98 $5,911.80 $6,132.19 $12,293.62
9/16/98 $5,797.30 $6,031.45 $12,386.03
9/17/98 $6,098.70 $6,351.57 $12,070.78
9/18/98 $6,143.60 $6,405.23 $12,085.23
9/21/98 $5,833.40 $6,074.76 $12,130.25
9/22/98 $5,872.90 $6,118.07 $12,200.27
9/23/98 $6,255.20 $6,523.87 $12,630.20
9/24/98 $6,734.10 $7,032.29 $12,353.33
9/25/98 $6,662.70 $6,977.69 $12,377.38
9/28/98 $7,045.00 $7,387.25 $12,424.06
9/29/98 $6,600.96 $6,920.25 $12,427.97
9/30/98 $6,729.03 $7,060.54 $12,049.21
10/1/98 $7,108.26 $7,465.40 $11,685.98
10/2/98 $7,426.61 $7,804.35 $11,878.02
10/5/98 $7,016.36 $7,373.13 $11,711.69
10/6/98 $7,229.83 $7,603.80 $11,664.65
10/7/98 $7,751.65 $8,156.48 $11,499.86
10/8/98 $7,462.90 $7,855.19 $11,366.70
10/9/98 $6,873.65 $7,219.66 $11,661.45
10/12/98 $6,824.49 $7,165.05 $11,820.09
10/13/98 $6,598.69 $6,928.73 $11,785.61
10/14/98 $6,347.96 $6,660.39 $11,912.73
10/15/98 $6,771.79 $7,110.44 $12,409.84
10/16/98 $6,844.11 $7,188.59 $12,515.64
10/19/98 $6,570.67 $6,897.66 $12,586.37
10/20/98 $6,684.18 $7,018.17 $12,604.61
10/21/98 $6,510.92 $6,837.40 $12,675.58
10/22/98 $6,360.46 $6,677.34 $12,776.99
10/23/98 $6,250.23 $6,563.41 $12,684.46
10/26/98 $6,182.43 $6,489.97 $12,704.01
10/27/98 $6,683.86 $7,026.65 $12,621.32
10/28/98 $6,594.91 $6,928.73 $12,653.90
10/29/98 $6,731.33 $7,071.84 $12,865.25
10/30/98 $6,754.89 $7,098.20 $13,016.18
11/2/98 $6,589.74 $6,928.73 $13,169.37
11/3/98 $6,547.49 $6,882.59 $13,160.36
11/4/98 $7,085.20 $7,455.04 $13,253.13
11/5/98 $7,431.89 $7,820.36 $13,430.95
11/6/98 $7,098.08 $7,464.46 $13,517.79
11/9/98 $7,074.81 $7,440.92 $13,389.73
11/10/98 $6,991.57 $7,353.36 $13,366.74
11/11/98 $6,843.35 $7,198.95 $13,280.38
11/12/98 $7,279.92 $7,662.18 $13,241.52
11/13/98 $7,003.20 $7,364.65 $13,336.65
11/16/98 $6,741.07 $7,087.84 $13,456.78
11/17/98 $6,821.77 $7,176.35 $13,497.77
11/18/98 $6,991.40 $7,355.24 $13,558.90
11/19/98 $6,930.17 $7,290.27 $13,655.22
11/20/98 $6,896.93 $7,254.50 $13,784.83
11/23/98 $7,004.05 $7,368.42 $14,076.98
11/24/98 $6,818.93 $7,172.58 $14,015.14
11/25/98 $6,743.48 $7,084.08 $14,061.11
11/27/98 $6,685.76 $7,024.76 $14,125.32
11/30/98 $6,362.85 $6,681.10 $13,785.78
12/1/98 $6,384.58 $6,706.52 $13,923.80
12/2/98 $6,218.53 $6,531.40 $13,876.05
12/3/98 $5,931.64 $6,230.11 $13,625.96
12/4/98 $6,024.29 $6,323.32 $13,941.10
12/7/98 $6,173.41 $6,483.38 $14,070.94
12/8/98 $5,912.53 $6,203.75 $13,996.07
12/9/98 $5,817.44 $6,106.77 $14,021.06
12/10/98 $6,210.64 $6,523.87 $13,802.25
12/11/98 $5,907.38 $6,200.92 $13,819.31
12/14/98 $5,899.16 $6,190.57 $13,520.05
12/15/98 $5,949.85 $6,245.17 $13,776.30
12/16/98 $6,263.09 $6,572.83 $13,765.76
12/17/98 $5,943.41 $6,236.70 $13,979.48
12/18/98 $5,810.96 $6,099.24 $14,074.85
12/21/98 $5,684.97 $5,970.25 $14,250.31
12/22/98 $5,492.13 $5,766.88 $14,258.96
12/23/98 $5,668.57 $5,953.30 $14,554.78
12/24/98 $5,683.67 $5,970.25 $14,527.89
12/28/98 $5,578.68 $5,859.15 $14,518.65
12/29/98 $5,812.94 $6,105.83 $14,711.99
12/30/98 $5,694.99 $5,982.49 $14,594.94
12/31/98 $5,810.00 $6,117.13 $14,562.96
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-----------------------------------------
FISCAL YEAR
ENDED SINCE INCEPTION
12/31/98 (5/29/97) TO 12/31/98
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Precious Metals Fund -17.24% -41.90%
XAU Index -12.43% -38.83%
S&P 500 Index 26.67% 45.63%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE
XAU INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
6
<PAGE>
THE U.S. GOVERNMENT BOND FUND
BENCHMARK: 120% OF THE PRICE MOVEMENT OF CURRENT 30-YEAR U.S. TREASURY BOND
The yield on the 30-year Treasury Bond for the year ending December 31, 1998
fell from 5.92% to 5.09%. Continued low inflation and a growing budget surplus,
which reduced U.S. government borrowing needs, spurred the rally. The Fund
achieves its objective by investing in the 30 year bond and by purchasing call
options on the Treasury Bond futures contract to increase its exposure to 120%
of the price movement of the Treasury Bond. The Fund returned 12.86% for the
period vs. 11.14% for the 30-year Treasury Bond.
CUMULATIVE FUND PERFORMANCE: AUGUST 18, 1997--DECEMBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
U.S. GOVERNMENT PRICE MOVEMENT OF 30 YEAR LEHMAN BROTHERS LONG
BOND FUND TREASURY BOND T BOND INDEX
<S> <C> <C> <C>
8/18/97 $10,000.00 $10,000.00 $10,000.00
8/19/97 $10,013.48 $10,011.16 $10,017.94
8/20/97 $9,987.91 $9,990.44 $9,990.62
8/21/97 $9,890.96 $9,904.37 $9,928.43
8/22/97 $9,801.06 $9,810.33 $9,861.49
8/25/97 $9,803.76 $9,811.92 $9,863.34
8/26/97 $9,823.84 $9,831.05 $9,876.06
8/27/97 $9,826.53 $9,832.64 $9,884.79
8/28/97 $9,933.53 $9,939.43 $9,965.81
8/29/97 $9,881.01 $9,897.99 $9,931.67
9/2/97 $9,930.28 $9,936.24 $9,975.02
9/3/97 $9,901.65 $9,910.74 $9,956.29
9/4/97 $9,888.82 $9,894.80 $9,955.78
9/5/97 $9,831.27 $9,845.39 $9,920.79
9/8/97 $9,876.64 $9,890.02 $9,952.46
9/9/97 $9,865.11 $9,877.27 $9,944.82
9/10/97 $9,823.56 $9,834.24 $9,922.91
9/11/97 $9,789.91 $9,799.17 $9,896.23
9/12/97 $9,913.45 $9,920.31 $9,990.35
9/15/97 $9,924.05 $9,929.87 $10,008.83
9/16/97 $10,176.63 $10,156.20 $10,188.66
9/17/97 $10,210.37 $10,188.08 $10,217.66
9/18/97 $10,204.42 $10,180.11 $10,215.29
9/19/97 $10,235.01 $10,207.20 $10,230.83
9/22/97 $10,270.70 $10,232.71 $10,267.26
9/23/97 $10,217.44 $10,184.89 $10,229.67
9/24/97 $10,316.91 $10,274.15 $10,291.38
9/25/97 $10,189.46 $10,162.58 $10,216.13
9/26/97 $10,254.90 $10,219.96 $10,251.18
9/29/97 $10,233.61 $10,197.64 $10,241.36
9/30/97 $10,179.70 $10,146.64 $10,213.26
10/1/97 $10,326.95 $10,274.15 $10,304.82
10/2/97 $10,352.79 $10,290.09 $10,343.28
10/3/97 $10,359.48 $10,293.27 $10,335.29
10/6/97 $10,426.14 $10,347.47 $10,390.12
10/7/97 $10,468.06 $10,388.91 $10,422.66
10/8/97 $10,261.87 $10,207.20 $10,284.08
10/9/97 $10,247.19 $10,194.45 $10,274.00
10/10/97 $10,156.08 $10,117.95 $10,212.22
10/13/97 $10,156.08 $10,114.76 $10,212.22
10/14/97 $10,274.98 $10,223.14 $10,293.97
10/15/97 $10,222.18 $10,173.73 $10,263.02
10/16/97 $10,222.09 $10,172.14 $10,263.41
10/17/97 $10,144.65 $10,108.38 $10,206.16
10/20/97 $10,179.79 $10,141.86 $10,229.55
10/21/97 $10,186.02 $10,146.64 $10,233.61
10/22/97 $10,200.33 $10,156.20 $10,247.02
10/23/97 $10,341.36 $10,275.74 $10,342.24
10/24/97 $10,396.58 $10,315.59 $10,367.87
10/27/97 $10,477.64 $10,392.09 $10,467.72
10/28/97 $10,386.72 $10,309.21 $10,397.83
10/29/97 $10,511.76 $10,423.97 $10,478.65
10/30/97 $10,590.03 $10,492.51 $10,536.85
10/31/97 $10,628.52 $10,519.60 $10,554.69
11/3/97 $10,528.12 $10,427.16 $10,493.46
11/4/97 $10,471.69 $10,379.34 $10,453.25
11/5/97 $10,479.13 $10,384.12 $10,463.12
11/6/97 $10,567.25 $10,459.04 $10,528.23
11/7/97 $10,576.18 $10,468.60 $10,535.31
11/10/97 $10,563.07 $10,452.66 $10,535.67
11/11/97 $10,563.07 $10,497.29 $10,535.67
11/12/97 $10,605.00 $10,490.91 $10,557.53
11/13/97 $10,624.70 $10,506.85 $10,580.48
11/14/97 $10,658.54 $10,535.54 $10,593.53
11/17/97 $10,688.85 $10,556.26 $10,617.35
11/18/97 $10,691.36 $10,554.67 $10,623.28
11/19/97 $10,765.63 $10,618.43 $10,675.29
11/20/97 $10,727.89 $10,574.30 $10,659.75
11/21/97 $10,766.38 $10,595.55 $10,674.27
11/24/97 $10,685.69 $10,530.16 $10,633.58
11/25/97 $10,725.20 $10,557.95 $10,660.12
11/26/97 $10,734.58 $10,595.55 $10,664.87
11/28/97 $10,751.60 $10,579.20 $10,693.88
12/1/97 $10,765.63 $10,593.91 $10,702.44
12/2/97 $10,770.19 $10,592.28 $10,711.00
12/3/97 $10,792.22 $10,608.62 $10,732.38
12/4/97 $10,766.84 $10,585.74 $10,708.77
12/5/97 $10,699.35 $10,523.62 $10,652.82
12/8/97 $10,599.70 $10,438.62 $10,596.18
12/9/97 $10,611.41 $10,445.16 $10,604.77
12/10/97 $10,677.23 $10,507.28 $10,645.40
12/11/97 $10,803.56 $10,616.80 $10,729.55
12/12/97 $10,945.05 $10,737.76 $10,824.11
12/15/97 $10,886.61 $10,687.08 $10,785.51
12/16/97 $10,910.10 $10,705.06 $10,803.70
12/17/97 $10,859.90 $10,662.56 $10,768.37
12/18/97 $10,940.03 $10,729.58 $10,820.97
12/19/97 $11,017.65 $10,783.53 $10,864.81
12/22/97 $11,041.45 $10,806.41 $10,888.29
12/23/97 $11,041.64 $10,808.04 $10,890.51
12/24/97 $11,021.74 $10,786.79 $10,883.34
12/26/97 $11,022.58 $10,781.89 $10,880.19
12/29/97 $10,997.67 $10,765.54 $10,869.27
12/30/97 $10,897.83 $10,675.64 $10,812.08
12/31/97 $10,984.28 $10,749.20 $10,867.47
1/2/98 $11,125.87 $10,866.89 $10,963.64
1/5/98 $11,330.91 $11,040.16 $11,111.57
1/6/98 $11,353.17 $11,061.41 $11,118.15
1/7/98 $11,233.79 $10,958.43 $11,042.58
1/8/98 $11,311.52 $11,018.91 $11,105.41
1/9/98 $11,409.26 $11,090.83 $11,176.89
1/12/98 $11,425.16 $11,105.54 $11,190.43
1/13/98 $11,396.06 $11,079.39 $11,183.95
1/14/98 $11,346.39 $11,036.89 $11,145.12
1/15/98 $11,321.30 $11,014.01 $11,139.54
1/16/98 $11,233.40 $10,943.72 $11,073.29
1/20/98 $11,179.76 $10,893.04 $11,044.20
1/21/98 $11,230.69 $10,938.81 $11,070.86
1/22/98 $11,148.23 $10,861.99 $11,028.30
1/23/98 $10,923.25 $10,680.55 $10,872.99
1/26/98 $11,072.77 $10,804.78 $10,970.30
1/27/98 $10,974.42 $10,719.78 $10,906.87
1/28/98 $10,988.55 $10,729.58 $10,920.03
1/29/98 $11,165.32 $10,875.06 $11,035.83
1/30/98 $11,223.46 $10,922.47 $11,090.90
2/2/98 $11,129.30 $10,840.74 $11,028.71
2/3/98 $11,138.00 $10,847.28 $11,033.80
2/4/98 $11,133.35 $10,847.28 $11,024.47
2/5/98 $11,022.03 $10,752.47 $10,967.37
2/6/98 $11,041.91 $10,768.81 $10,971.59
2/9/98 $10,985.09 $10,718.14 $10,942.51
2/10/98 $11,024.18 $10,752.47 $10,964.70
2/11/98 $11,151.79 $10,857.08 $11,050.51
2/12/98 $11,113.29 $10,824.39 $11,043.41
2/13/98 $11,172.71 $10,871.79 $11,076.02
2/17/98 $11,260.41 $10,943.72 $11,138.86
2/18/98 $11,183.22 $10,876.70 $11,095.38
2/19/98 $11,168.32 $10,866.89 $11,087.89
2/20/98 $11,136.30 $10,839.10 $11,068.44
2/23/98 $11,062.17 $10,778.62 $11,024.57
2/24/98 $10,947.39 $10,687.08 $10,942.72
2/25/98 $11,036.29 $10,759.01 $11,002.04
2/26/98 $10,987.12 $10,716.51 $10,976.92
2/27/98 $11,035.33 $10,760.64 $11,008.28
3/2/98 $10,863.34 $10,603.72 $10,941.13
3/3/98 $10,791.57 $10,543.24 $10,848.66
3/4/98 $10,831.92 $10,580.83 $10,867.38
3/5/98 $10,780.25 $10,536.70 $10,843.17
3/6/98 $10,864.64 $10,608.62 $10,896.44
3/9/98 $10,963.88 $10,690.35 $10,964.84
3/10/98 $10,963.30 $10,687.08 $10,975.96
3/11/98 $11,030.10 $10,745.93 $11,016.35
3/12/98 $11,143.99 $10,839.10 $11,092.65
3/13/98 $11,102.77 $10,799.87 $11,073.51
3/16/98 $11,174.66 $10,863.62 $11,120.84
3/17/98 $11,111.22 $10,804.78 $11,086.02
3/18/98 $11,084.14 $10,781.89 $11,065.99
3/19/98 $11,081.70 $10,778.62 $11,059.90
3/20/98 $11,123.73 $10,814.58 $11,084.30
3/23/98 $11,131.75 $10,814.58 $11,094.69
3/24/98 $11,135.91 $10,821.12 $11,098.59
3/25/98 $11,032.23 $10,732.85 $11,038.76
3/26/98 $10,997.06 $10,709.97 $11,014.92
3/27/98 $10,990.46 $10,703.43 $11,003.12
3/30/98 $10,954.47 $10,670.74 $10,979.85
3/31/98 $11,024.06 $10,732.85 $11,032.12
4/1/98 $11,094.19 $10,791.70 $11,090.63
4/2/98 $11,189.03 $10,870.16 $11,156.19
4/3/98 $11,321.60 $10,974.78 $11,240.12
4/6/98 $11,242.51 $10,902.85 $11,190.46
4/7/98 $11,214.24 $10,873.43 $11,172.11
4/8/98 $11,110.79 $10,786.79 $11,103.08
4/9/98 $11,147.03 $10,819.49 $11,120.95
4/13/98 $11,044.87 $10,739.39 $11,058.82
4/14/98 $11,094.15 $10,785.16 $11,099.30
4/15/98 $11,133.04 $10,812.95 $11,127.15
4/16/98 $11,157.29 $10,834.20 $11,140.15
4/17/98 $11,141.73 $10,817.85 $11,139.53
4/20/98 $11,071.71 $10,759.01 $11,096.00
4/21/98 $11,009.30 $10,706.70 $11,054.29
4/22/98 $11,006.32 $10,705.06 $11,050.14
4/23/98 $10,975.65 $10,678.91 $11,038.73
4/24/98 $11,036.31 $10,727.95 $11,070.09
4/27/98 $10,815.32 $10,541.60 $10,930.21
4/28/98 $10,814.78 $10,543.24 $10,925.80
4/29/98 $10,804.33 $10,531.80 $10,924.00
4/30/98 $11,027.06 $10,714.87 $11,066.82
5/1/98 $11,054.27 $10,736.12 $11,087.93
5/4/98 $11,045.21 $10,726.31 $11,094.47
5/5/98 $10,997.01 $10,685.45 $11,057.79
5/6/98 $11,047.75 $10,727.95 $11,094.30
5/7/98 $11,040.68 $10,718.14 $11,091.91
5/8/98 $10,997.63 $10,682.18 $11,059.94
5/11/98 $10,872.99 $10,575.93 $10,992.27
5/12/98 $11,024.70 $10,706.70 $11,084.50
5/13/98 $11,048.47 $10,724.68 $11,102.06
5/14/98 $10,990.92 $10,675.64 $11,068.13
5/15/98 $11,010.99 $10,695.26 $11,076.19
5/18/98 $11,097.30 $10,765.54 $11,135.32
5/19/98 $11,070.94 $10,742.66 $11,122.00
5/20/98 $11,146.35 $10,804.78 $11,174.06
5/21/98 $11,079.01 $10,747.56 $11,132.45
5/22/98 $11,125.85 $10,788.43 $11,155.09
5/26/98 $11,218.75 $10,866.89 $11,217.84
5/27/98 $11,256.74 $10,901.22 $11,250.99
5/28/98 $11,245.08 $10,889.78 $11,241.17
5/29/98 $11,292.66 $10,933.91 $11,278.03
6/1/98 $11,341.06 $10,974.78 $11,317.67
6/2/98 $11,309.41 $10,948.62 $11,296.68
6/3/98 $11,299.16 $10,937.18 $11,295.51
6/4/98 $11,275.12 $10,919.20 $11,272.54
6/5/98 $11,322.35 $10,955.16 $11,302.41
6/8/98 $11,321.56 $10,951.89 $11,316.41
6/9/98 $11,316.64 $10,945.35 $11,316.52
6/10/98 $11,487.83 $11,090.83 $11,418.25
6/11/98 $11,588.79 $11,174.20 $11,498.73
6/12/98 $11,585.05 $11,167.66 $11,499.43
6/15/98 $11,677.68 $11,246.12 $11,556.87
6/16/98 $11,578.29 $11,164.39 $11,497.41
6/17/98 $11,404.97 $11,022.18 $11,379.40
6/18/98 $11,496.42 $11,100.64 $11,431.49
6/19/98 $11,530.89 $11,125.16 $11,459.24
6/22/98 $11,563.38 $11,156.22 $11,481.02
6/23/98 $11,598.42 $11,180.74 $11,508.99
6/24/98 $11,572.82 $11,161.12 $11,494.05
6/25/98 $11,574.05 $11,162.76 $11,500.51
6/26/98 $11,609.31 $11,184.01 $11,521.33
6/29/98 $11,587.78 $11,177.47 $11,521.45
6/30/98 $11,627.79 $11,210.16 $11,548.46
7/1/98 $11,619.84 $11,203.62 $11,545.71
7/2/98 $11,675.52 $11,249.39 $11,583.99
7/6/98 $11,716.08 $11,282.08 $11,619.28
7/7/98 $11,667.73 $11,252.66 $11,592.00
7/8/98 $11,621.29 $11,218.33 $11,558.63
7/9/98 $11,664.25 $11,241.22 $11,585.05
7/10/98 $11,641.01 $11,218.33 $11,565.17
7/13/98 $11,523.96 $11,121.89 $11,501.87
7/14/98 $11,459.10 $11,064.68 $11,459.44
7/15/98 $11,474.56 $11,079.39 $11,474.69
7/16/98 $11,440.22 $11,053.24 $11,448.13
7/17/98 $11,406.68 $11,018.91 $11,419.95
7/20/98 $11,476.29 $11,074.49 $11,470.00
7/21/98 $11,552.67 $11,134.97 $11,522.80
7/22/98 $11,528.48 $11,115.35 $11,516.40
7/23/98 $11,561.66 $11,154.58 $11,543.92
7/24/98 $11,531.12 $11,113.72 $11,526.98
7/27/98 $11,524.03 $11,090.83 $11,507.83
7/28/98 $11,431.24 $11,030.35 $11,470.60
7/29/98 $11,386.64 $10,984.58 $11,435.96
7/30/98 $11,454.56 $11,043.43 $11,477.45
7/31/98 $11,466.14 $11,053.24 $11,495.80
8/3/98 $11,585.15 $11,154.58 $11,571.54
8/4/98 $11,614.59 $11,177.47 $11,595.18
8/5/98 $11,591.01 $11,151.31 $11,599.10
8/6/98 $11,559.59 $11,130.06 $11,578.76
8/7/98 $11,657.30 $11,210.16 $11,637.10
8/10/98 $11,662.05 $11,213.43 $11,640.73
8/11/98 $11,719.93 $11,259.20 $11,686.20
8/12/98 $11,684.37 $11,228.14 $11,659.92
8/13/98 $11,630.32 $11,185.64 $11,624.09
8/14/98 $11,712.83 $11,249.39 $11,685.85
8/17/98 $11,693.77 $11,238.78 $11,676.29
8/18/98 $11,678.73 $11,222.86 $11,667.75
8/19/98 $11,667.09 $11,214.01 $11,661.45
8/20/98 $11,755.18 $11,300.68 $11,715.84
8/21/98 $11,839.44 $11,387.35 $11,806.11
8/24/98 $11,816.10 $11,360.82 $11,777.77
8/25/98 $11,895.61 $11,440.42 $11,832.55
8/26/98 $11,906.45 $11,451.03 $11,847.86
8/27/98 $11,999.19 $11,521.78 $11,915.35
8/28/98 $12,033.10 $11,564.23 $11,914.28
8/31/98 $12,146.72 $11,659.75 $12,011.16
9/1/98 $12,083.55 $11,604.91 $11,975.83
9/2/98 $12,076.77 $11,585.46 $11,947.20
9/3/98 $12,132.17 $11,656.21 $12,018.42
9/4/98 $12,213.51 $11,705.73 $12,028.63
9/8/98 $12,086.44 $11,580.15 $11,984.55
9/9/98 $12,233.97 $11,703.96 $12,078.14
9/10/98 $12,430.21 $11,864.92 $12,238.66
9/11/98 $12,322.65 $11,778.25 $12,171.56
9/14/98 $12,298.76 $11,774.72 $12,136.37
9/15/98 $12,249.21 $11,741.11 $12,112.73
9/16/98 $12,335.29 $11,804.78 $12,130.27
9/17/98 $12,390.33 $11,864.92 $12,213.01
9/18/98 $12,461.44 $11,928.60 $12,235.66
9/21/98 $12,431.98 $11,967.51 $12,217.48
9/22/98 $12,443.69 $11,903.84 $12,189.99
9/23/98 $12,440.16 $11,889.69 $12,238.59
9/24/98 $12,501.32 $11,926.83 $12,257.24
9/25/98 $12,506.81 $11,965.74 $12,276.31
9/28/98 $12,462.28 $11,916.22 $12,235.36
9/29/98 $12,550.53 $12,009.96 $12,260.04
9/30/98 $12,799.92 $12,238.13 $12,466.19
10/1/98 $12,982.58 $12,409.70 $12,587.21
10/2/98 $13,080.51 $12,482.22 $12,648.20
10/5/98 $13,369.41 $12,754.61 $12,771.38
10/6/98 $13,281.86 $12,680.33 $12,733.64
10/7/98 $13,099.52 $12,521.14 $12,586.55
10/8/98 $12,667.00 $12,209.83 $12,336.32
10/9/98 $12,294.64 $11,974.59 $12,101.68
10/12/98 $12,294.64 $12,001.12 $12,101.68
10/13/98 $12,341.90 $12,204.53 $12,102.63
10/14/98 $12,589.89 $12,204.53 $12,026.26
10/15/98 $12,494.68 $12,165.61 $12,224.02
10/16/98 $12,695.06 $12,266.43 $12,336.56
10/19/98 $12,632.97 $12,222.21 $12,335.07
10/20/98 $12,466.71 $12,091.33 $12,227.02
10/21/98 $12,435.35 $12,070.10 $12,207.34
10/22/98 $12,337.30 $11,960.44 $12,171.68
10/23/98 $12,257.77 $11,884.38 $12,107.64
10/26/98 $12,398.61 $11,958.67 $12,177.50
10/27/98 $12,528.64 $12,041.80 $12,332.08
10/28/98 $12,484.83 $11,960.44 $12,314.71
10/29/98 $12,557.41 $12,025.88 $12,354.37
10/30/98 $12,419.29 $11,910.91 $12,257.34
11/2/98 $12,217.32 $11,769.41 $12,132.84
11/3/98 $12,256.66 $11,801.25 $12,133.54
11/4/98 $12,044.17 $11,603.14 $12,007.92
11/5/98 $12,037.13 $11,583.69 $12,027.08
11/6/98 $11,862.62 $11,440.42 $11,936.79
11/9/98 $12,055.52 $11,592.53 $12,056.55
11/10/98 $12,078.18 $11,592.53 $12,127.01
11/11/98 $12,078.18 $11,594.30 $12,127.01
11/12/98 $12,161.10 $11,661.51 $12,162.92
11/13/98 $12,136.98 $11,634.98 $12,152.40
11/16/98 $12,112.29 $11,622.60 $12,137.19
11/17/98 $12,042.07 $11,571.31 $12,123.19
11/18/98 $12,175.42 $11,662.31 $12,150.79
11/19/98 $12,173.93 $11,655.03 $12,173.28
11/20/98 $12,241.09 $11,704.17 $12,193.07
11/23/98 $12,151.22 $11,645.93 $12,145.35
11/24/98 $12,199.08 $11,702.35 $12,169.37
11/25/98 $12,285.53 $11,764.23 $12,206.62
11/27/98 $12,331.48 $11,804.26 $12,227.50
11/30/98 $12,522.70 $11,962.60 $12,350.72
12/1/98 $12,552.01 $12,004.46 $12,388.90
12/2/98 $12,607.40 $12,057.24 $12,450.01
12/3/98 $12,617.11 $12,080.90 $12,443.57
12/4/98 $12,586.76 $12,020.84 $12,379.80
12/7/98 $12,476.50 $12,020.84 $12,345.48
12/8/98 $12,607.18 $12,113.66 $12,441.10
12/9/98 $12,685.83 $12,173.72 $12,493.69
12/10/98 $12,696.54 $12,190.10 $12,493.45
12/11/98 $12,548.09 $12,068.16 $12,411.78
12/14/98 $12,617.46 $12,124.58 $12,449.98
12/15/98 $12,502.50 $12,035.40 $12,380.04
12/16/98 $12,520.66 $12,077.26 $12,417.70
12/17/98 $12,569.54 $12,088.18 $12,436.12
12/18/98 $12,529.04 $12,066.34 $12,435.18
12/21/98 $12,427.08 $11,978.98 $12,356.97
12/22/98 $12,289.73 $11,869.78 $12,263.95
12/23/98 $12,137.56 $11,742.39 $12,168.26
12/24/98 $12,097.93 $11,709.63 $12,128.89
12/28/98 $12,209.34 $11,800.63 $12,214.86
12/29/98 $12,311.45 $11,886.16 $12,287.98
12/30/98 $12,355.79 $11,924.38 $12,339.97
12/31/98 $12,467.00 $11,946.22 $12,333.44
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
---------------------------------------
FISCAL YEAR SINCE INCEPTION OF
ENDED CONTINUOUS OPERATIONS
12-31-98 8-18-97 TO 12-31-98
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
U.S. Government Bond Fund 12.86% 24.67%
Price movement of the 30-year Treasury Bond 11.14% 19.46%
Lehman Brothers Long T-Bond Index 13.49% 23.33%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
THE FUND COMMENCED CONTINUOUS OPERATIONS ON AUGUST 18, 1997. PRIOR TO THAT TIME,
DUE TO THE NATURE OF THE FUND'S INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. PERIODS OF OPERATION, INCLUDING RETURNS FOR EACH
DISCRETE PERIOD, WERE AS FOLLOWS: MAY 29, 1997 TO JUNE 5, 1997 1.50%; JUNE 24,
1997 TO JULY 14, 1997 2.20%; AND JULY 29, 1997 TO AUGUST 12, 1997 -3.30%. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE LEHMAN BROTHERS LONG TREASURY
INDEX IS AN UNMANAGED BOND INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR
OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. THE PRICE MOVEMENT OF
THE 30-YEAR TREASURY BOND REPRESENTS A CUMULATIVE PERCENTAGE CHANGE IN ITS
CLOSING PRICE. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND
REINVESTED DIVIDENDS AND CAPITAL GAINS.
7
<PAGE>
THE JUNO FUND
BENCHMARK: INVERSE (OPPOSITE) OF THE PRICE MOVEMENT OF THE CURRENT 30-YEAR U.S.
TREASURY BOND
To achieve its objective, Juno attempts to approximate a 100% short position in
the Long Treasury Bond. During the fiscal year, the Fund sold Treasury Bond
Futures and bought puts on the Treasury Bond Futures traded on the Chicago Board
of Trade. The Treasury Bond Futures will usually have a high correlation to the
30-year Treasury Bond, but over the entire period the Fund tended to deviate, to
the benefit of shareholders due to a negative compounding effect. Since
inception of continuous operations on March 3, 1998, the Juno Fund posted a
total return of -8.70% compared to 12.90% total return for the 30-year U.S.
Treasury Bond.
CUMULATIVE FUND PERFORMANCE: MARCH 3, 1998--DECEMBER 31, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PRICE MOVEMENT OF LEHMAN BROTHERS LONG
JUNO FUND 30 YEAR TREASURY BOND T BOND INDEX
<S> <C> <C> <C>
3/4/98 $10,000.00 $10,000.00 $10,000.00
3/5/98 $10,030.78 $9,958.29 $9,977.72
3/6/98 $9,982.34 $10,026.26 $10,026.74
3/9/98 $9,918.27 $10,103.51 $10,089.68
3/10/98 $9,915.55 $10,100.42 $10,099.91
3/11/98 $9,879.75 $10,156.03 $10,137.08
3/12/98 $9,810.23 $10,244.09 $10,207.29
3/13/98 $9,832.32 $10,207.01 $10,189.68
3/16/98 $9,793.92 $10,267.26 $10,233.23
3/17/98 $9,827.26 $10,211.65 $10,201.19
3/18/98 $9,842.36 $10,190.02 $10,182.76
3/19/98 $9,845.17 $10,186.93 $10,177.15
3/20/98 $9,821.14 $10,220.92 $10,199.61
3/23/98 $9,813.58 $10,220.92 $10,209.17
3/24/98 $9,814.42 $10,227.10 $10,212.76
3/25/98 $9,879.00 $10,143.67 $10,157.70
3/26/98 $9,909.22 $10,122.05 $10,135.76
3/27/98 $9,915.79 $10,115.87 $10,124.91
3/30/98 $9,937.61 $10,084.97 $10,103.49
3/31/98 $9,896.66 $10,143.67 $10,151.59
4/1/98 $9,854.09 $10,199.29 $10,205.43
4/2/98 $9,797.73 $10,273.44 $10,265.76
4/3/98 $9,718.30 $10,372.32 $10,342.99
4/6/98 $9,761.39 $10,304.34 $10,297.30
4/7/98 $9,776.06 $10,276.53 $10,280.41
4/8/98 $9,835.25 $10,194.65 $10,216.89
4/9/98 $9,818.48 $10,225.55 $10,233.33
4/13/98 $9,883.43 $10,149.85 $10,176.16
4/14/98 $9,851.36 $10,193.11 $10,213.41
4/15/98 $9,822.96 $10,219.37 $10,239.03
4/16/98 $9,801.08 $10,239.46 $10,251.00
4/17/98 $9,787.73 $10,224.01 $10,250.43
4/20/98 $9,833.13 $10,168.39 $10,210.37
4/21/98 $9,878.50 $10,118.96 $10,172.00
4/22/98 $9,882.78 $10,117.41 $10,168.18
4/23/98 $9,901.98 $10,092.69 $10,157.67
4/24/98 $9,850.71 $10,139.04 $10,186.53
4/27/98 $10,071.54 $9,962.92 $10,057.82
4/28/98 $10,079.36 $9,964.47 $10,053.76
4/29/98 $10,087.18 $9,953.65 $10,052.10
4/30/98 $9,833.47 $10,126.68 $10,183.52
5/1/98 $9,815.88 $10,146.76 $10,202.94
5/4/98 $9,793.85 $10,137.49 $10,208.96
5/5/98 $9,839.05 $10,098.87 $10,175.21
5/6/98 $9,801.23 $10,139.04 $10,208.81
5/7/98 $9,786.57 $10,129.77 $10,206.61
5/8/98 $9,800.90 $10,095.78 $10,177.19
5/11/98 $9,892.06 $9,995.37 $10,114.93
5/12/98 $9,782.91 $10,118.96 $10,199.79
5/13/98 $9,767.26 $10,135.95 $10,215.95
5/14/98 $9,794.35 $10,089.60 $10,184.72
5/15/98 $9,782.22 $10,108.14 $10,192.14
5/18/98 $9,726.51 $10,174.57 $10,246.56
5/19/98 $9,732.23 $10,152.94 $10,234.30
5/20/98 $9,695.21 $10,211.65 $10,282.20
5/21/98 $9,730.29 $10,157.58 $10,243.91
5/22/98 $9,720.98 $10,196.20 $10,264.75
5/26/98 $9,673.23 $10,270.35 $10,322.49
5/27/98 $9,662.92 $10,302.80 $10,352.99
5/28/98 $9,648.31 $10,291.98 $10,343.95
5/29/98 $9,625.43 $10,333.69 $10,377.87
6/1/98 $9,596.43 $10,372.32 $10,414.35
6/2/98 $9,607.52 $10,347.60 $10,395.03
6/3/98 $9,599.90 $10,336.78 $10,393.96
6/4/98 $9,616.24 $10,319.79 $10,372.82
6/5/98 $9,578.88 $10,353.78 $10,400.30
6/8/98 $9,576.04 $10,350.69 $10,413.19
6/9/98 $9,571.43 $10,344.51 $10,413.29
6/10/98 $9,475.30 $10,482.00 $10,506.90
6/11/98 $9,415.03 $10,560.79 $10,580.96
6/12/98 $9,404.37 $10,554.61 $10,581.60
6/15/98 $9,357.25 $10,628.77 $10,634.46
6/16/98 $9,413.05 $10,551.52 $10,579.74
6/17/98 $9,532.21 $10,417.12 $10,471.15
6/18/98 $9,466.55 $10,491.27 $10,519.09
6/19/98 $9,438.43 $10,514.44 $10,544.62
6/22/98 $9,425.55 $10,543.80 $10,564.66
6/23/98 $9,386.26 $10,566.97 $10,590.40
6/24/98 $9,399.76 $10,548.43 $10,576.66
6/25/98 $9,397.44 $10,549.98 $10,582.60
6/26/98 $9,372.06 $10,570.06 $10,601.76
6/29/98 $9,388.29 $10,563.88 $10,601.86
6/30/98 $9,359.67 $10,594.78 $10,626.72
7/1/98 $9,354.80 $10,588.60 $10,624.19
7/2/98 $9,316.57 $10,631.86 $10,659.42
7/6/98 $9,319.51 $10,662.75 $10,691.88
7/7/98 $9,317.24 $10,634.95 $10,666.78
7/8/98 $9,349.22 $10,602.50 $10,636.08
7/9/98 $9,320.49 $10,624.13 $10,660.39
7/10/98 $9,329.31 $10,602.50 $10,642.10
7/13/98 $9,400.89 $10,511.35 $10,583.85
7/14/98 $9,443.42 $10,457.28 $10,544.81
7/15/98 $9,435.48 $10,471.19 $10,558.84
7/16/98 $9,459.67 $10,446.47 $10,534.39
7/17/98 $9,473.75 $10,414.03 $10,508.47
7/20/98 $9,431.55 $10,466.55 $10,554.52
7/21/98 $9,381.09 $10,523.71 $10,603.11
7/22/98 $9,384.04 $10,505.18 $10,597.22
7/23/98 $9,357.95 $10,542.25 $10,622.54
7/24/98 $9,385.28 $10,503.63 $10,606.95
7/27/98 $9,202.90 $10,482.00 $10,589.33
7/28/98 $9,441.79 $10,424.84 $10,555.07
7/29/98 $9,454.01 $10,381.59 $10,523.20
7/30/98 $9,400.16 $10,437.20 $10,561.38
7/31/98 $9,395.39 $10,446.47 $10,578.27
8/3/98 $9,335.98 $10,542.25 $10,647.96
8/4/98 $9,317.54 $10,563.88 $10,669.71
8/5/98 $9,320.81 $10,539.16 $10,673.32
8/6/98 $9,345.10 $10,519.08 $10,654.60
8/7/98 $9,291.88 $10,594.78 $10,708.29
8/10/98 $9,287.53 $10,597.87 $10,711.62
8/11/98 $9,260.25 $10,641.12 $10,753.47
8/12/98 $9,272.14 $10,611.77 $10,729.28
8/13/98 $9,303.12 $10,571.61 $10,696.32
8/14/98 $9,256.65 $10,631.86 $10,753.14
8/17/98 $9,264.76 $10,621.83 $10,753.14
8/18/98 $9,270.93 $10,606.78 $10,744.35
8/19/98 $9,273.25 $10,598.43 $10,736.49
8/20/98 $9,236.56 $10,680.34 $10,730.69
8/21/98 $9,188.69 $10,762.25 $10,780.74
8/24/98 $9,189.10 $10,737.18 $10,863.80
8/25/98 $9,153.40 $10,812.40 $10,837.73
8/26/98 $9,129.98 $10,822.43 $10,888.13
8/27/98 $9,093.37 $10,889.30 $10,902.22
8/28/98 $9,083.46 $10,929.42 $10,964.33
8/31/98 $9,042.03 $11,019.69 $10,963.34
9/1/98 $9,061.43 $10,967.87 $11,052.49
9/2/98 $9,043.59 $10,949.48 $11,019.98
9/3/98 $9,007.90 $11,016.35 $10,993.64
9/4/98 $8,985.06 $11,063.15 $11,059.17
9/8/98 $9,009.32 $10,944.46 $11,068.56
9/9/98 $8,967.76 $11,061.48 $11,028.00
9/10/98 $8,932.07 $11,213.60 $11,114.12
9/11/98 $8,950.89 $11,131.69 $11,261.83
9/14/98 $8,945.24 $11,128.35 $11,200.09
9/15/98 $8,951.65 $11,096.59 $11,167.70
9/16/98 $8,927.94 $11,156.77 $11,145.95
9/17/98 $8,916.29 $11,213.60 $11,162.09
9/18/98 $8,911.07 $11,273.78 $11,238.23
9/21/98 $8,882.57 $11,310.56 $11,259.07
9/22/98 $8,867.88 $11,250.38 $11,242.34
9/23/98 $8,853.08 $11,237.01 $11,217.04
9/24/98 $8,829.36 $11,272.11 $11,261.76
9/25/98 $8,815.11 $11,308.89 $11,278.93
9/28/98 $8,830.34 $11,262.08 $11,296.48
9/29/98 $8,788.53 $11,350.68 $11,258.80
9/30/98 $8,758.75 $11,566.33 $11,281.50
10/1/98 $8,686.60 $11,728.48 $11,471.20
10/2/98 $8,659.77 $11,797.02 $11,582.57
10/5/98 $8,585.61 $12,054.46 $11,638.68
10/6/98 $8,606.57 $11,984.25 $11,752.04
10/7/98 $8,696.45 $11,833.80 $11,717.31
10/8/98 $8,969.62 $11,539.58 $11,581.95
10/9/98 $9,362.86 $11,317.25 $11,351.69
10/12/98 $9,362.86 $11,230.32 $11,135.79
10/13/98 $9,313.57 $11,342.32 $11,135.79
10/14/98 $9,185.66 $11,534.57 $11,136.66
10/15/98 $9,199.91 $11,497.79 $11,066.38
10/16/98 $9,098.30 $11,593.07 $11,248.36
10/19/98 $9,110.34 $11,551.28 $11,351.92
10/20/98 $9,187.77 $11,427.58 $11,350.54
10/21/98 $9,202.83 $11,407.52 $11,251.12
10/22/98 $9,249.94 $11,303.87 $11,233.01
10/23/98 $9,289.48 $11,231.99 $11,200.19
10/26/98 $9,203.70 $11,302.20 $11,141.27
10/27/98 $9,130.00 $11,380.77 $11,205.56
10/28/98 $9,135.46 $11,303.87 $11,347.80
10/29/98 $9,086.05 $11,365.73 $11,331.81
10/30/98 $9,169.60 $11,257.07 $11,368.31
11/2/98 $9,298.81 $11,123.33 $11,279.02
11/3/98 $9,272.34 $11,153.42 $11,164.46
11/4/98 $9,353.58 $10,966.20 $11,165.10
11/5/98 $9,336.90 $10,947.81 $11,049.51
11/6/98 $9,429.39 $10,812.40 $11,067.14
11/9/98 $9,321.34 $10,956.17 $10,984.05
11/10/98 $9,299.23 $10,956.17 $11,094.25
11/11/98 $9,299.23 $10,957.84 $11,159.09
11/12/98 $9,280.03 $11,021.36 $11,192.14
11/13/98 $9,275.70 $10,996.29 $11,182.46
11/16/98 $9,282.95 $10,984.58 $11,168.46
11/17/98 $9,299.99 $10,936.11 $11,155.58
11/18/98 $9,173.51 $11,022.11 $11,180.98
11/19/98 $9,168.81 $11,015.23 $11,201.67
11/20/98 $9,124.96 $11,061.67 $11,219.88
11/23/98 $9,168.48 $11,006.63 $11,175.97
11/24/98 $9,144.21 $11,059.95 $11,198.08
11/25/98 $9,093.51 $11,118.44 $11,232.35
11/27/98 $9,067.46 $11,156.28 $11,251.56
11/30/98 $9,010.60 $11,305.92 $11,364.94
12/1/98 $9,003.73 $11,345.48 $11,400.08
12/2/98 $8,996.87 $11,395.36 $11,456.31
12/3/98 $9,003.04 $11,417.73 $11,450.39
12/4/98 $9,011.39 $11,360.96 $11,391.71
12/7/98 $9,038.61 $11,360.96 $11,360.13
12/8/98 $8,966.55 $11,448.69 $11,448.11
12/9/98 $8,927.09 $11,505.45 $11,496.51
12/10/98 $8,933.27 $11,520.93 $11,496.29
12/11/98 $9,005.03 $11,405.69 $11,421.14
12/14/98 $8,969.92 $11,459.01 $11,456.29
12/15/98 $9,042.35 $11,374.72 $11,391.93
12/16/98 $8,993.13 $11,414.29 $11,426.58
12/17/98 $8,991.70 $11,424.61 $11,443.53
12/18/98 $8,999.35 $11,403.96 $11,442.67
12/21/98 $9,071.77 $11,321.40 $11,370.70
12/22/98 $9,146.35 $11,218.20 $11,285.10
12/23/98 $9,230.70 $11,097.80 $11,197.05
12/24/98 $9,264.02 $11,066.83 $11,160.82
12/28/98 $9,192.02 $11,152.84 $11,239.93
12/29/98 $9,133.04 $11,233.68 $11,307.22
12/30/98 $9,112.06 $11,269.80 $11,355.05
12/31/98 $9,130.00 $11,290.44 $11,349.05
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
---------------------
SINCE INCEPTION OF
CONTINUOUS OPERATIONS
3-3-98 TO 12-31-98
<S> <C>
- -------------------------------------------------------------------------------------------------------------------
Juno Fund -8.70%
Price movement of the 30-year Treasury Bond 12.90%
Lehman Brothers Long T-Bond Index 13.49%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
THE FUND COMMENCED CONTINUOUS OPERATIONS ON MARCH 3, 1998. PRIOR TO THAT TIME,
DUE TO THE NATURE OF THE FUND'S INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. PERIODS OF OPERATION, INCLUDING RETURNS FOR EACH
DISCRETE PERIOD, WERE AS FOLLOWS: MAY 7, 1997 TO JUNE 3, 1997 -1.40%; JUNE 16,
1997 TO JULY 2, 1997 -0.31%; JULY 7, 1997 -0.52%; JULY 24, 1997 TO AUGUST 11,
1997 2.87%; AUGUST 26, 1997 TO OCTOBER 19, 1997 -2.06%; OCTOBER 22, 1997 TO
DECEMBER 11, 1997 -5.16%; JANUARY 19, 1998 TO JANUARY 25, 1998 2.93%; FEBRUARY
1, 1998 TO FEBRUARY 2, 1998 0.45%; FEBRUARY 22, 1998 TO FEBRUARY 24, 1998 1.22%;
AND MARCH 1, 1998 TO MARCH 2, 1998 0.88%. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. THE LEHMAN BROTHERS LONG TREASURY INDEX IS AN UNMANAGED BOND
INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES
TO REDUCE ITS REPORTED RETURN. THE PRICE MOVEMENT OF THE 30-YEAR TREASURY BOND
REPRESENTS A CUMULATIVE PERCENTAGE CHANGE IN ITS CLOSING PRICE. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
8
<PAGE>
RYDEX VARIABLE TRUST
NOVA
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
----------- -----------
<S> <C> <C>
COMMON STOCKS 3.4%
Standard & Poor's Depository Receipts
(Cost $795,090) 9,120 $ 1,124,610
-----------
<CAPTION>
CONTRACTS
-----------
<S> <C> <C>
OPTIONS PURCHASED 36.0%
Call Options on:
March 1999 S&P 500 Futures Contracts,
Expiring January 1999, with Strike
750 (Cost $10,758,628) 97 12,015,875
-----------
<CAPTION>
FACE AMOUNT
-----------
<S> <C> <C>
REPURCHASE AGREEMENTS 21.7%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations-(Note 6)
4.30% 01/04/99 $ 1,240,537 1,240,537
4.63% 01/04/99 1,240,537 1,240,537
4.75% 01/04/99 1,240,537 1,240,537
4.85% 01/04/99 827,025 827,025
4.90% 01/04/99 2,697,085 2,697,085
-----------
Total Repurchase Agreements (Cost
$7,245,721) 7,245,721
-----------
U.S. TREASURY OBLIGATIONS 38.9%
U.S. Treasury Bill 4.37% 01/21/99 1,000,000 997,572
U.S. Treasury Bill 4.375% 01/21/99 12,000,000 11,970,833
-----------
Total U.S. Treasury Obligations
(Cost $12,968,405) 12,968,405
-----------
Total Investments 100% (Cost
$31,767,844) $33,354,611
-----------
-----------
<CAPTION>
UNREALIZED
CONTRACTS GAIN
----------- -----------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED
March 1999 S&P 500 Futures Contracts
(Underlying Face Amount at Market
Value $13,077,750) 42 $ 632,635
-----------
-----------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
RYDEX VARIABLE TRUST
URSA
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
FACE AMOUNT (NOTE 1)
------------ ----------
<S> <C> <C>
REPURCHASE AGREEMENTS 35.1%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations-- (Note 6)
4.30% 01/04/99 $ 46,244 $ 46,244
4.63% 01/04/99 46,244 46,244
4.75% 01/04/99 46,244 46,244
4.85% 01/04/99 30,829 30,829
4.90% 01/04/99 100,540 100,540
----------
Total Repurchase Agreements (Cost
$270,101) 270,101
----------
U.S. TREASURY OBLIGATIONS 64.9%
U.S. Treasury Bill 4.375% 01/21/99
(Cost $498,785) 500,000 498,785
----------
Total Investments 100% (Cost
$768,886) $ 768,886
----------
----------
- ------------------------------------------------------------------
<CAPTION>
UNREALIZED
SHARES LOSS
------------ ----------
<S> <C> <C>
COMMON STOCK SOLD SHORT
Standard & Poor's Depository Receipts
(Underlying Face Amount at Market
Value $1,673,969) 13,575 $ (85,890)
----------
----------
<CAPTION>
CONTRACTS
------------
<S> <C> <C>
FUTURES CONTRACTS SOLD SHORT
March 1999 S&P 500 Futures Contracts
(Underlying Face Amount at Market
Value $3,736,500) 12 $ (84)
----------
----------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
RYDEX VARIABLE TRUST
U.S. GOVERNMENT MONEY MARKET
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
FACE AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS 50.5%
U.S. Treasury Bill 4.37% 1/21/99 $ 2,000,000 $ 1,995,145
U.S. Treasury Bill 4.375% 1/21/99 20,000,000 19,951,389
-----------
Total U.S. Treasury Obligations
(Cost $21,946,534) 21,946,534
-----------
FEDERAL AGENCY DISCOUNT NOTES 29.8%
Federal Home Loan Banks 5.03% 1/22/99 5,000,000 4,985,329
Freddie Mac 5.11% 1/15/99 3,000,000 2,994,038
Freddie Mac 5.10% 2/03/99 5,000,000 4,976,625
-----------
Total Federal Agency Discount Notes
(Cost $12,955,992) 12,955,992
-----------
REPURCHASE AGREEMENTS 19.7%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations-- (Note 6)
4.30% 01/04/99 1,462,895 1,462,895
4.63% 01/04/99 1,462,895 1,462,895
4.75% 01/04/99 1,462,895 1,462,895
4.85% 01/04/99 975,263 975,263
4.90% 01/04/99 3,180,518 3,180,518
-----------
Total Repurchase Agreements (Cost
$8,544,466) 8,544,466
-----------
Total Investments 100% (Cost
$43,446,992) $43,446,992
-----------
-----------
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
RYDEX VARIABLE TRUST
OTC
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
COMMON STOCKS 94.4%
Microsoft Corp.* 27,477 $ 3,810,711
Intel Corp. 18,546 2,198,860
Cisco Systems, Inc.* 17,792 1,651,366
MCI Worldcom, Inc.* 20,578 1,476,472
Dell Computer Corp.* 14,560 1,065,610
Oracle Corp.* 11,815 509,543
Sun Microsystems, Inc.* 4,728 404,835
Amgen, Inc.* 3,289 343,906
Tele-Communications, Inc.* 6,024 333,203
Yahoo! Inc.* 1,324 313,705
Amazon.com.* 849 272,741
Comcast Corp. Special Class A 4,371 256,523
Qwest Communication, Inc.* 4,654 232,700
Level 3 Communications, Inc* 5,090 219,506
3Com Corp.* 4,890 219,133
Compuware Corp.* 2,804 219,063
Costco Companies, Inc.* 3,017 217,790
Applied Materials, Inc.* 5,091 217,322
HBO & Company 7,319 209,964
Ascend Communications, Inc.* 3,108 204,351
Staples, Inc.* 4,605 201,181
Network Associates, Inc.* 2,967 196,564
Tellabs, Inc.* 2,859 196,020
Cintas Corp. 2,581 181,799
Linear Technology Corp. 2,013 180,289
Paychex, Inc. 3,347 172,161
BMC Software, Inc.* 3,772 168,090
Chancellor Media Corp.* 3,482 166,701
Nextel Communications, Inc.* 7,026 165,989
Ericsson (LM) Tel-Sp ADR 6,930 165,887
Altera Corp.* 2,723 165,763
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
Maxim Integrated Products, Inc.* 3,671 $ 160,377
Novell, Inc.* 8,587 155,639
PanAmSat Corp.* 3,975 154,777
Netscape Communications Corp.* 2,536 154,062
Biogen, Inc.* 1,842 152,886
Apple Computer, Inc.* 3,697 151,346
Nordstrom, Inc. 4,226 146,589
Starbucks Corp.* 2,434 136,608
Immunex Corp New* 1,080 135,878
Chiron Corp.* 4,928 129,052
Bed Bath and Beyond Inc.* 3,716 126,809
Xilinx, Inc.* 1,912 124,519
Peoplesoft, Inc.* 6,519 123,454
American Power Conversion Corp.* 2,511 121,627
Biomet, Inc. 3,010 121,153
Parametric Technology Corp.* 7,363 119,649
ADC Telecommunications, Inc.* 3,387 117,698
Quintiles Transnational Corp.* 2,172 115,931
Intuit Inc* 1,503 108,968
Fiserv Inc.* 2,069 106,450
Genzyme Corp.* 2,032 101,092
Citrix Systems Inc* 1,031 100,071
Concord EFS, Inc.* 2,286 96,869
USA Networks, Inc.* 2,903 96,162
KLA-Tencor Corp.* 2,159 93,647
Qualcomm, Inc.* 1,733 89,791
Quantum Corp.* 4,172 88,655
Synopsys Inc 1,589 86,203
Sanmina Corp.* 1,236 77,250
Vitesse Semiconductor Corp.* 1,667 76,057
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
12
<PAGE>
RYDEX VARIABLE TRUST
OTC
SCHEDULE OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
Paccar, Inc. 1,832 $ 75,341
NTL Inc* 1,315 74,215
Electronic Arts, Inc.* 1,289 72,345
Jacor Communications, Inc.* 1,123 72,293
Smurfit Stone Container Corp. 4,523 71,520
Centocor, Inc.* 1,468 66,244
Sigma Aldrich Corp. 2,251 66,123
Veritas Software Corp.* 1,035 62,035
Molex Inc* 1,597 60,886
Adobe Systems, Inc. 1,269 59,326
Apollo Group* 1,573 53,285
Dollar Tree Stores, Inc.* 1,139 49,760
Pacificare Health System 590 46,905
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
Reuters Group, PLC, Sponsored ADR 631 $ 39,990
McCormick & Company, Inc. 1,176 39,764
Northwest Airlines Corp.* 1,505 38,472
Fore Systems, Inc* 2,073 37,962
Electronics for Imaging, Inc.* 931 37,240
Adaptec, Inc.* 1,992 34,985
Atmel Corp.* 1,731 26,506
Cambridge Technology Partners, Inc.* 999 22,103
-----------
Total Common Stocks (Cost
$15,712,771) $21,014,317
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
13
<PAGE>
RYDEX VARIABLE TRUST
OTC
SCHEDULE OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
FACE AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
REPURCHASE AGREEMENTS 5.6%
Repurchase Agreements Collateralized by U.S.
Treasury Obligations-- (Note 6)
4.30% 01/04/99 $215,038 $ 215,038
4.63% 01/04/99 215,038 215,038
4.75% 01/04/99 215,038 215,038
4.85% 01/04/99 143,359 143,359
4.90% 01/04/99 467,520 467,520
-----------
Total Repurchase Agreements (Cost $1,255,993) 1,255,993
-----------
Total Investments 100% (Cost $16,968,764) $22,270,310
-----------
-----------
- -----------------------------------------------------------------------------
<CAPTION>
UNREALIZED
CONTRACTS GAIN
----------- -----------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED
March 1999 Nasdaq 100 Future Contracts (Underlying
Face Amount at Market Value $927,000) 5 $ 71,715
-----------
-----------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
RYDEX VARIABLE TRUST
PRECIOUS METALS
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ------------
<S> <C> <C>
COMMON STOCKS 64.2%
Mining and Precious Metals Stocks
Barrick Gold Corp. 20,016 $ 390,312
Newmont Mining Corp. 8,308 150,063
Placer Dome, Inc. 12,423 142,865
Homestake Mining Co. 11,876 109,111
Freeport-McMoRan Copper & Gold, Inc.,
Class B 8,225 85,848
Ashanti Goldfields Company, Ltd.,
Sponsored ADR 5,369 50,334
Battle Mountain Gold Co., Class A 11,419 47,103
Getchell Gold Corp. 1,530 41,693
Hecla Mining Co.* 2,738 9,925
Coeur d'Alene Mines Corp. 1,088 5,033
------------
Total Common Stocks (Cost $990,817) 1,032,287
------------
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE AGREEMENTS 12.5%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations--(Note 6)
4.30% 01/04/99 $34,242 34,242
4.63% 01/04/99 34,242 34,242
4.75% 01/04/99 34,242 34,242
4.85% 01/04/99 22,828 22,828
4.90% 01/04/99 74,446 74,446
------------
Total Repurchase Agreements (Cost
$200,000) 200,000
------------
<CAPTION>
CONTRACTS
-------
<S> <C> <C>
OPTIONS PURCHASED 23.3%
Call Options On:
XAU Index, Expiring January 1999,
with Strike 50
(Cost $367,595) 240 375,000
------------
Total Investments 100% (Cost
$1,558,412) $ 1,607,287
------------
------------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
15
<PAGE>
RYDEX VARIABLE TRUST
U.S. GOVERNMENT BOND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
---------- ------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS 92.0%
U.S. Treasury Bond 5.25% due 11/15/28
(Cost $4,565,159) $4,435,000 $ 4,548,636
------------
<CAPTION>
CONTRACTS
----------
<S> <C> <C>
OPTIONS PURCHASED 7.9%
Call Options On:
March 1999 U.S. Treasury Bond Futures
Contracts,
Expiring February 1999, with Strike
100 (Cost $393,117) 14 388,937
------------
<CAPTION>
FACE
AMOUNT
----------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.1%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations-- (Note 6)
4.30% 01/04/99 $ 1,044 1,044
4.63% 01/04/99 1,044 1,044
4.75% 01/04/99 1,044 1,044
4.85% 01/04/99 697 697
4.90% 01/04/99 2,270 2,270
------------
Total Repurchase Agreements (Cost
$6,099) 6,099
------------
Total Investments 100% (Cost
$4,964,375) $ 4,943,672
------------
------------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
RYDEX VARIABLE TRUST
JUNO
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
CONTRACTS (NOTE 1)
---------- ---------
<S> <C> <C>
OPTIONS PURCHASED 100.0%
Put options on:
March 1999 U.S. Treasury Bond Futures
Contracts, Expiring February 1999,
with Strike 130 (Cost $2,384) 1 $ 3,281
---------
---------
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
GOVERNMENT
NOVA URSA MONEY MARKET
----------- ---------- -------------
<S> <C> <C> <C>
ASSETS
Repurchase Agreements $ 7,245,721 $ 270,101 $ 8,544,466
Investment Securities 26,108,890 498,785 34,902,526
----------- ---------- -------------
Securities at Market Value (Note
1)--See Accompanying Schedules 33,354,611 768,886 43,446,992
Cash at Custodian Bank -- 107,052 --
Investment Income Receivable 4,523 35 1,120
Segregated Cash with Broker -- 438,032 --
Receivable for Shares Purchased -- 4,313,985 27,937
Receivable--Short Sales Open -- 1,588,078 --
Unamortized Organization Costs (Note
1) 89,439 78,943 92,804
Other Assets 47,723 -- --
----------- ---------- -------------
Total Assets 33,496,296 7,295,011 43,568,853
----------- ---------- -------------
LIABILITIES
Short Sale at Market Value -- 1,673,969 --
Payable for Shares Redeemed 4,107,988 -- 2,478,912
Organizational Expense Payable to
Advisor (Note 1) 93,141 79,376 99,659
Payable to Advisor, Net (Note 7) 32,129 3,892 12,160
Payable to Servicer, Net (Note 7) 5,344 583 7,398
Other Liabilities -- 28,211 97
----------- ---------- -------------
Total Liabilities 4,238,602 1,786,031 2,598,226
----------- ---------- -------------
NET ASSETS $29,257,694 $5,508,980 $ 40,970,627
----------- ---------- -------------
----------- ---------- -------------
Shares Outstanding 1,842,133 874,307 40,970,627
----------- ---------- -------------
----------- ---------- -------------
Net Asset Value $15.88 $6.30 $1.00
----------- ---------- -------------
----------- ---------- -------------
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
PRECIOUS GOVERNMENT
OTC METALS BOND JUNO
----------- ---------- ---------- --------
<S> <C> <C> <C> <C>
ASSETS
Repurchase Agreements $ 1,255,993 $ 200,000 $ 6,099 --
Investment Securities 21,014,317 1,407,287 4,937,573 $ 3,281
----------- ---------- ---------- --------
Securities at Market Value (Note
1)--See Accompanying Schedules 22,270,310 1,607,287 4,943,672 3,281
Cash at Custodian Bank -- 250,001 -- 62,947
Receivable from Advisor, Net (Note 7) 18,119 -- 4,018 2,637
Receivable for Shares Purchased 662,487 1,528,133 49,203 --
Investment Income Receivable 2,543 26 30,485 --
Segregated Cash with Broker 20,213 -- -- --
Unamortized Organization Costs (Note
1) 85,852 78,810 80,216 78,700
Other Assets 13,500 -- 423 --
----------- ---------- ---------- --------
Total Assets 23,073,024 3,464,257 5,108,017 147,565
----------- ---------- ---------- --------
LIABILITIES
Payable for Securities Purchased 942,790 689,061 51,644 --
Organization Expense Payable to
Advisor (Note 1) 88,956 79,025 80,748 78,726
Payable to Advisor, Net (Note 7) -- 682 -- --
Payable to Servicer, Net (Note 7) 3,414 459 2,909 39
Other Liabilities 182 -- -- --
----------- ---------- ---------- --------
Total Liabilities 1,035,342 769,227 135,301 78,765
----------- ---------- ---------- --------
NET ASSETS $22,037,682 $2,695,030 $4,972,716 $ 68,800
----------- ---------- ---------- --------
----------- ---------- ---------- --------
Shares Outstanding 1,126,102 464,174 374,471 8,187
----------- ---------- ---------- --------
----------- ---------- ---------- --------
Net Asset Value $19.57 $5.81 $13.28 $8.40
----------- ---------- ---------- --------
----------- ---------- ---------- --------
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
Year Ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
GOVERNMENT
NOVA URSA MONEY MARKET
---------- ----------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 558,197 $ 254,034 $1,497,911
Dividends 12,912 -- --
---------- ----------- -------------
Total Income 571,109 254,034 1,497,911
---------- ----------- -------------
EXPENSES
Advisory Fees (Note 7) 121,583 51,240 141,889
Tactical Allocation Fees (Note 7) 40,528 14,234 56,756
Mortality and Expense Risk Fee (Note
5) 151,616 64,878 271,471
Organizational Expenses 41,355 15,149 71,421
Administration Fees (Note5) 18,194 7,785 32,577
Custodian Fees 34,392 13,152 59,215
Portfolio Accounting Expenses 14,168 5,453 24,502
Legal Expenses 57,962 22,309 100,238
Miscellaneous 52,347 18,983 90,291
---------- ----------- -------------
Total Expenses 532,145 213,183 848,360
Less Expenses Waived and Reimbursed
by Investment Advisor and
Servicer 5,691 9,572 90,266
---------- ----------- -------------
Net Expenses 526,454 203,611 758,094
---------- ----------- -------------
Net Investment Income 44,655 50,423 739,817
---------- ----------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities 339,280 (363) --
Futures Contracts 1,061,135 (966,091) --
Securities Sold Short -- (692,631) --
---------- ----------- -------------
Total Net Realized Gain (Loss) 1,400,415 (1,659,085) --
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 1,463,967 -- --
Futures Contracts 556,517 13,744 --
Securities Sold Short -- (22,395) --
---------- ----------- -------------
Total Unrealized Appreciation
(Depreciation) 2,020,484 (8,651) --
---------- ----------- -------------
Net Gain (Loss) on Investments 3,420,899 (1,667,736) --
---------- ----------- -------------
Net Increase (Decrease) in Net Assets
from Operations $3,465,554 $(1,617,313) $ 739,817
---------- ----------- -------------
---------- ----------- -------------
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
Year Ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OTC PRECIOUS METALS U.S. GOVERNMENT BOND JUNO
---------- ---------------- --------------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 29,865 $ 965 $ 92,477 $ 9,190
Dividends 8,751 8,221 -- --
---------- ---------------- -------- --------------
Total Income 38,616 9,186 92,477 9,190
---------- ---------------- -------- --------------
EXPENSES
Advisory Fees (Note7) 96,378 7,503 9,985 1,600
Tactical Allocation Fees (Note7) 25,701 2,001 3,994 445
Mortality and Expense Risk Fee
(Note5) 119,669 9,169 16,279 1,918
Organizational Expenses 30,171 2,745 4,595 520
Administration Fees (Note5) 14,360 1,100 1,954 230
Custodian Fees 37,656 3,424 4,448 488
Portfolio Accounting Expenses 11,419 876 1,695 162
Legal Expenses 46,718 3,585 6,933 663
Miscellaneous 14,150 3,489 4,296 4,093
---------- ---------------- -------- --------------
Total Expenses 396,222 33,892 54,179 10,119
Less Expenses Waived and Reimbursed
by Investment Advisor and
Servicer -- 1,612 -- 3,864
---------- ---------------- -------- --------------
Net Expenses 396,222 32,280 54,179 6,255
---------- ---------------- -------- --------------
Net Investment Income (Loss) (357,606) (23,094) 38,298 2,935
---------- ---------------- -------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities 2,789,563 (355,959) (25,441) (4,516)
Written Options 39,592 -- -- --
Futures Contracts 170,088 -- -- (15,415)
---------- ---------------- -------- --------------
Total Net Realized Gain (Loss) 2,999,243 (355,959) (25,441) (19,931)
Net Change in Unrealized Appreciation/
(Depreciation) on:
Investment Securities 5,411,141 8,971 (37,336) 897
Written Options (3,794) -- -- --
Futures Contracts 71,715 -- -- --
---------- ---------------- -------- --------------
Total Unrealized Appreciation/
(Depreciation) 5,479,062 8,971 (37,336) 897
---------- ---------------- -------- --------------
Net Gain (Loss) on Investments 8,478,305 (346,988) (62,777) (19,034)
---------- ---------------- -------- --------------
Net Increase (Decrease) in Net Assets
from Operations $8,120,699 $(370,082) $(24,479) $ (16,099)
---------- ---------------- -------- --------------
---------- ---------------- -------- --------------
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NOVA URSA
---------------------------------------- ----------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997* DECEMBER 31, 1998 DECEMBER 31, 1997*
------------------ ------------------- ------------------ -------------------
<S> <C> <C> <C> <C>
CHANGES FROM OPERATIONS
Net Investment Income (Loss) $ 44,655 $ 25,410 $ 50,423 $ (3,330)
Net Realized Gain (Loss) on
Investments 1,400,415 112,377 (1,659,085) (254,521)
Net Change in Unrealized Appreciation
(Depreciation) of Investments 2,020,484 198,918 (8,651) (77,323)
------------------ ------------------- ------------------ -------------------
Net Increase (Decrease) in Net Assets
from Operations 3,465,554 336,705 (1,617,313) (335,174)
------------------ ------------------- ------------------ -------------------
Net Increase in Net Assets from Shares
Transactions (Note 10) 15,344,104 10,111,331 4,247,449 3,214,018
------------------ ------------------- ------------------ -------------------
Net Increase in Net Assets 18,809,658 10,448,036 2,630,136 2,878,844
------------------ ------------------- ------------------ -------------------
NET ASSETS--Beginning of Period 10,448,036 -- 2,878,844 --
------------------ ------------------- ------------------ -------------------
NET ASSETS--End of Period $29,257,694 $10,448,036 $ 5,508,980 $2,878,844
------------------ ------------------- ------------------ -------------------
------------------ ------------------- ------------------ -------------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: MAY 7, 1997--NOVA AND URSA
See Notes to Financial Statements.
22
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET OTC
---------------------------------------- ----------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997* DECEMBER 31, 1998 DECEMBER 31, 1997*
------------------ ------------------- ------------------ -------------------
<S> <C> <C> <C> <C>
CHANGES FROM OPERATIONS
Net Investment Income (Loss) $ 739,817 $ 221,638 $ (357,606) $ (15,375)
Net Realized Gain (Loss) on
Investments -- -- 2,999,243 (81,503)
Net Change in Unrealized Appreciation
(Depreciation) of Investments -- -- 5,479,062 (105,801)
------------------ ------------------- ------------------ -------------------
Net Increase (Decrease) in Net
Assets from Operations 739,817 221,638 8,120,699 (202,679)
------------------ ------------------- ------------------ -------------------
Distributions to Shareholders from
Net Investment Income (215,212) -- -- --
Net Increase in Net Assets from Shares
Transactions (Note 10) 22,542,650 17,681,734 11,549,578 2,570,084
------------------ ------------------- ------------------ -------------------
Net Increase in Net Assets 23,067,255 17,903,372 19,670,277 2,367,405
------------------ ------------------- ------------------ -------------------
NET ASSETS--Beginning of Period 17,903,372 -- 2,367,405 --
------------------ ------------------- ------------------ -------------------
NET ASSETS--End of Period $40,970,627 $17,903,372 $22,037,682 $2,367,405
------------------ ------------------- ------------------ -------------------
------------------ ------------------- ------------------ -------------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: MAY 7,1997--U.S. GOVERNMENT MONEY MARKET AND OTC
See Notes to Financial Statements.
23
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRECIOUS METALS U.S. GOVERNMENT BOND
---------------------------------------- ----------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997* DECEMBER 31, 1998 DECEMBER 31, 1997*
------------------ ------------------- ------------------ -------------------
<S> <C> <C> <C> <C>
CHANGES FROM OPERATIONS
Net Investment Income (Loss) $ (23,094) $ (5,585) $ 38,298 $ 5,858
Net Realized Gain (Loss) on
Investments (355,959) (365,727) (25,441) 14,916
Net Change in Unrealized Appreciation
(Depreciation) of Investments 8,971 39,904 (37,336) 16,633
------------------ ---------- ------------------ ----------
Net Increase (Decrease) in Net
Assets from Operations (370,082) (331,408) (24,479) 37,407
------------------ ---------- ------------------ ----------
Distributions to Shareholders from
Net Investment Income -- -- (18,864) --
Net Increase in Net Assets from Shares
Transactions (Note 10) 2,547,202 849,318 4,124,040 854,612
------------------ ---------- ------------------ ----------
Net Increase in Net Assets 2,177,120 517,910 4,080,697 892,019
------------------ ---------- ------------------ ----------
NET ASSETS--Beginning of Period 517,910 -- 892,019 --
------------------ ---------- ------------------ ----------
NET ASSETS--End of Period $2,695,030 $ 517,910 $4,972,716 $892,019
------------------ ---------- ------------------ ----------
------------------ ---------- ------------------ ----------
</TABLE>
* COMMENCEMENT OF OPERATIONS: MAY 29, 1997--PRECIOUS METALS AND U.S. GOVERNMENT
BOND
See Notes to Financial Statements.
24
<PAGE>
RYDEX VARIABLE TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNO
----------------------------------------
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997*
------------------ -------------------
<S> <C> <C>
CHANGES FROM OPERATIONS
Net Investment Income $ 2,935 $ 6,316
Net Realized (Loss) on Investments (19,931) (26,480)
Net Change in Unrealized Appreciation
of Investments 897 --
-------- --------
Net (Decrease) in Net Assets from
Operations (16,099) (20,164)
-------- --------
Net Increase in Net Assets from Shares
Transactions (Note 10) 84,899 20,164
-------- --------
Net Increase in Net Assets 68,800 --
-------- --------
NET ASSETS--Beginning of Period -- --
-------- --------
NET ASSETS--End of Period $ 68,800 $ --
-------- --------
-------- --------
</TABLE>
* COMMENCEMENT OF OPERATIONS: MAY 7, 1997--JUNO
See Notes to Financial Statements.
25
<PAGE>
RYDEX VARIABLE TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NOVA URSA
---------------------------- ----------------------------------------------------
YEAR PERIOD YEAR ENDED JUNE 10, MAY 24, MAY 7,
ENDED ENDED ENDED 1997 TO 1997 TO 1997 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, JUNE 3, MAY 21,
1998 1997* 1998 1997+ 1997+ 1997+*
------------- ------------ ------------ ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:++
NET ASSET VALUE--BEGINNING OF PERIOD $ 12.21 $ 10.00 $ 8.07 $ 9.36 $ 9.57 $ 10.00
------------- ------------ ------------ ------------ --------- ----------
Net Investment Income (Loss) .04 .07 .06 (.01) .00 (.04)
Net Realized and Unrealized Gains
(Losses) on Securities 3.63 2.14 (1.83) (1.28) .01 (.33)
------------- ------------ ------------ ------------ --------- ----------
Net Increase (Decrease) in Net Asset
Value 3.67 2.21 (1.77) (1.29) .01 (.37)
------------- ------------ ------------ ------------ --------- ----------
NET ASSET VALUE--END OF PERIOD $ 15.88 $ 12.21 $ 6.30 $ 8.07 $ 9.58 $ 9.63
------------- ------------ ------------ ------------ --------- ----------
------------- ------------ ------------ ------------ --------- ----------
TOTAL INVESTMENT RETURN 30.06% (21.93)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses 3.26% 9.09%** 3.76% 9.21%** 85.10%** 13.62%**
Net Expenses 3.22% 2.80%** 3.59% 2.90%** 2.90%** 2.90%**
Net Investment Income (Loss) 0.27% 0.91%** 0.89% (0.27)%** 2.76%** (10.05)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 0% 178.34% 0% 0% 0% 0%
Net Assets, End of Period (000's
omitted) $29,258 $ 10,448 $ 5,509 $ 2,879 $ -- $ --
</TABLE>
* COMMENCEMENT OF OPERATIONS: NOVA AND URSA--MAY 7, 1997
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ DUE TO THE NATURE OF THE INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. FINANCIAL HIGHLIGHTS ARE PRESENTED ONLY
FOR PERIODS WITH NET ASSETS GREATER THAN ZERO.
++ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
See Notes to Financial Statements.
26
<PAGE>
RYDEX VARIABLE TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET OTC PRECIOUS METALS
----------------------------- --------------------------- ---------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997* 1998 1997* 1998 1997*
------------- ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:++
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.32 $ 10.00 $ 10.65 $ 10.00 $ 7.02 $ 10.00
------------- ------------- ------------ ------------ ------------ ------------
Net Investment Income (Loss) .08 .31 (.40) (.09) (.16) (.11)
Net Realized and Unrealized Gains
(Losses) on Securities .00 .01 9.32 .74 (1.05) (2.87)
------------- ------------- ------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations .08 .32 8.92 .65 (1.21) (2.98)
Dividends to Shareholders from Net
Investment Income (.01) .00 .00 .00 .00 .00
Adjustment due to Reorganization
(Note 1) (9.39) .00 .00 .00 .00 .00
------------- ------------- ------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Asset
Value (9.32) .32 8.92 .65 (1.21) (2.98)
------------- ------------- ------------ ------------ ------------ ------------
NET ASSET VALUE--END OF PERIOD $ 1.00 $ 10.32 $ 19.57 $ 10.65 $ 5.81 $ 7.02
------------- ------------- ------------ ------------ ------------ ------------
------------- ------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN 2.22% 83.76% (17.24)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses 2.99% 6.82%** 2.96% 9.07%** 3.39% 9.76%**
Net Expenses 2.67% 2.20%** 2.96% 2.80%** 3.23% 2.80%**
Net Investment Income (Loss) 2.61% 3.34%** (2.67)% (1.22)%** (2.31)% (2.19)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 0% 0% 1077.49% 449.91% 1739.23% 913.83%
Net Assets, End of Period (000's
omitted) $40,971 $17,903 $ 22,038 $ 2,367 $ 2,695 $ 518
</TABLE>
* COMMENCEMENT OF OPERATIONS: U.S. GOVERNMENT MONEY MARKET AND OTC--MAY 7,
1997; PRECIOUS METALS--MAY 29, 1997
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
++ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
See Notes to Financial Statements.
27
<PAGE>
RYDEX VARIABLE TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT BOND
--------------------------------------------------------------
AUGUST 18, JULY 29, JUNE 24, MAY 29,
YEAR ENDED 1997 TO 1997 TO 1997 TO 1997 TO
DECEMBER 31, DECEMBER 31, AUGUST 12, JULY 14, JUNE 5,
1998 1997+ 1997+ 1997+ 1997+*
------------ ------------ ---------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:++
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.82 $ 10.70 $ 10.92 $ 10.44 $10.00
------------ ------------ ---------- -------- --------
Net Investment Income .24 .15 .02 .10 .00
Net Realized and Unrealized Gains
(Losses) on Securities 1.28 .97 (.38) .13 .15
------------ ------------ ---------- -------- --------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations 1.52 1.12 (.36) .23 .15
Dividends to Shareholders from Net
Investment Income (.06) .00 .00 .00 .00
------------ ------------ ---------- -------- --------
Net Increase (Decrease) in Net Asset
Value 1.46 1.12 (.36) .23 .15
------------ ------------ ---------- -------- --------
NET ASSET VALUE--END OF PERIOD $ 13.28 $ 11.82 $ 10.56 $ 10.67 $10.15
------------ ------------ ---------- -------- --------
------------ ------------ ---------- -------- --------
TOTAL INVESTMENT RETURN 12.86%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses 2.71% 8.47%** 49.63%** 12.68%** 5.43%**
Net Expenses 2.71% 2.40%** 2.40%** 2.40%** 2.40%**
Net Investment Income 1.92% 3.49%** 3.80%** 7.94%** 1.86%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 1462.79% 760.78% 0% 0% 0%
Net Assets, End of Period (000's
omitted) $ 4,973 $ 892 $ -- $ -- $ --
</TABLE>
* COMMENCEMENT OF OPERATIONS: U. S. GOVERNMENT BOND--MAY 29, 1997
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ DUE TO THE NATURE OF THE INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. FINANCIAL HIGHLIGHTS ARE PRESENTED ONLY
FOR PERIODS WITH NET ASSETS GREATER THAN ZERO.
++ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
See Notes to Financial Statements.
28
<PAGE>
RYDEX VARIABLE TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNO
--------------------------------------------------------------------
MARCH 3, MARCH 1, FEBRUARY 22, FEBRUARY 1, JANUARY 19,
1998 TO 1998 TO 1998 TO 1998 TO 1998 TO
DECEMBER 31, MARCH 2, FEBRUARY 24, FEBRUARY 2, JANUARY 25,
1998+ 1998+ 1998+ 1998+ 1998+
------------ ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:++
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.20 $ 9.09 $ 9.03 $ 8.98 $ 8.88
------------ ---------- ------------ ----------- -----------
Net Investment Income (Loss) (.05) .00 .00 .00 .00
Net Realized and Unrealized Gains
(Losses) on Securities (.75) .08 .11 .04 .26
------------ ---------- ------------ ----------- -----------
Net Increase (Decrease) in Net Asset
Value (.80) .08 .11 .04 .26
------------ ---------- ------------ ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 8.40 $ 9.17 $ 9.14 $ 9.02 $ 9.14
------------ ---------- ------------ ----------- -----------
------------ ---------- ------------ ----------- -----------
TOTAL INVESTMENT RETURN (8.70)% 0.88% 1.22% 0.45% 2.93%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses 5.72%** 13.10%** 4.39%** 4.42%** 4.42%**
Net Expenses 5.18%** 11.01%** 3.68%** 3.68%** 3.67%**
Net Investment Income (Loss) (1.10)%** (5.32)%** 1.60%** 1.92%** 1.73%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 0% 0% 0% 0% 0%
Net Assets, End of Period (000's
omitted) $ 69 $ -- $ -- $ -- $ --
</TABLE>
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ DUE TO THE NATURE OF THE INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. FINANCIAL HIGHLIGHTS ARE PRESENTED ONLY
FOR PERIODS WITH NET ASSETS GREATER THAN ZERO.
++ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
See Notes to Financial Statements.
29
<PAGE>
RYDEX VARIABLE TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNO
------------------------------------------------------------------------------
OCTOBER 22, AUGUST 26, JULY 24, JUNE 16, MAY 7,
1997 TO 1997 TO 1997 TO 1997 TO 1997 TO
DECEMBER 11, OCTOBER 19, AUGUST 11, JULY 7, JULY 2, JUNE 3,
1997+ 1997+ 1997+ 1997+ 1997+ 1997+*
------------- ----------- ----------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:++
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.50 $ 9.72 $ 9.41 $ 9.59 $ 9.71 $ 10.00
------------- ----------- ----------- --------- --------- ----------
Net Investment Income .11 .01 .01 .00 .00 .00
Net Realized and Unrealized Gains
(Losses) on Securities (.60) (.21) .26 (.05) (.03) (.14)
------------- ----------- ----------- --------- --------- ----------
Net Increase (Decrease) in Net Asset
Value (.49) (.20) .27 (.05) (.03) (.14)
------------- ----------- ----------- --------- --------- ----------
NET ASSET VALUE--END OF PERIOD $ 9.01 $ 9.52 $ 9.68 $ 9.54 $ 9.68 $ 9.86
------------- ----------- ----------- --------- --------- ----------
------------- ----------- ----------- --------- --------- ----------
RATIOS TO AVERAGE NET ASSETS
Gross Expenses 19.73%** 7.88%** 3.23%** 111.10%** 5.71%** 6.13%
Net Expenses 2.90%** 2.90%** 2.90%** 2.90%** 2.90%** 2.90%
Net Investment Income (Loss) 8.68%** 0.80%** 1.50%** 0.74%** 1.29%** (0.37)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 0% 0% 0% 0% 0% 0%
Net Assets, End of Period (000's
omitted) $ -- $ -- $ -- $ -- $ -- $ --
</TABLE>
* COMMENCEMENT OF OPERATIONS: JUNO--MAY 7, 1997
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ DUE TO THE NATURE OF THE INVESTMENT ACTIVITY, THE FUND EXPERIENCED
PERIODS WITH ZERO NET ASSETS. FINANCIAL HIGHLIGHTS ARE PRESENTED ONLY
FOR PERIODS WITH NET ASSETS GREATER THAN ZERO.
++ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
See Notes to Financial Statements.
30
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Variable Trust (the "Trust") is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 as a
non-diversified, open-ended investment company and is authorized to issue an
unlimited number of shares. The Trust currently has seven operating Funds: the
Nova Fund, the Ursa Fund, the U.S. Government Money Market Fund, the OTC Fund,
the Precious Metals Fund, the U.S. Government Bond Fund, and the Juno Fund
(collectively the "Funds"), and is managed by Padco Advisors II, Inc. ("PADCO").
Padco Financial Services, Inc. ("PFSI") acts as principal underwriter for the
Trust. The Trust offers shares of the Funds to insurance companies for their
variable annuity and variable life insurance contracts.
The Trust was organized on June 11, 1998 as a Delaware business trust. Effective
November 2, 1998, the assets and fund liabilities of Rydex Advisor Variable
Annuity Account (the "Separate Account"), a segregated investment account of
Conseco Variable Insurance Company ("CVIC") (formerly Great American Reserve
Insurance Company), were transferred to the Trust in exchange for shares of the
Funds of the Trust (the "Separate Account Restructuring"). Shares of the Funds
(full and fractional) were issued to corresponding subaccounts of the Separate
Account. The value of the shares of each Fund, except for U.S. Government Money
Market shares which were adjusted to $1.00, were equivalent in value to the
value of outstanding accumulation units of the corresponding subaccount. The
outstanding shares of the Funds are held in the subaccounts of the Separate
Account for variable annuity contracts issued by CVIC.
The following significant accounting policies are in conformity with generally
accepted accounting principles and are consistently followed by the Trust.
SECURITY VALUATION
Securities listed on an exchange are valued at the latest quoted sales prices as
of 4:00 P.M. on the valuation date. Securities not traded on an exchange are
valued at their last sales price. Listed options held by the Trust are valued at
their last bid price. Over-the-counter options held by the Trust are valued
using the average bid price obtained from one or more securities dealers. The
value of futures contracts purchased and sold by the Trust are accounted for
using the unrealized gain or loss on the contracts that is determined by marking
the contracts to their current realized settlement prices. Short-term securities
with less than sixty days to maturity are valued at amortized cost, which
approximates market. Securities and assets for which market quotations are not
readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Trustees.
31
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are generally recorded on the day after the trade is
executed. Realized gains and losses from securities transactions are recorded on
the identified cost basis. Dividend income is recorded on the ex-dividend date,
net of applicable taxes withheld by foreign countries. Interest income and
expenses are accrued on a daily basis.
ORGANIZATION COSTS
Deferred organization costs represent expenses incurred and paid on behalf of
the Trust by CVIC and PADCO. These expenses, which totaled approximately
$821,573, are being reimbursed to CVIC and PADCO by the Trust. These initial
costs were allocated to the Funds within the Trust. The Trust is amortizing the
total organization costs on a straight line basis over a five year period
beginning with the commencement of operations. These amortized costs are then
allocated to the Funds daily and reconciled and settled monthly between the
Funds on the basis of the relative net assets of each Fund to the total net
assets of the Trust. The monthly amortized amount is paid to PADCO and CVIC. An
additional $35,000 of organization costs associated with the Separate Account
Restructuring were incurred by the Trust and allocated to the Funds. These costs
are being amortized over the remaining amortization period of the initial
organization costs. At December 31, 1998, accrued organization costs payable by
the Trust were $599,631.
OPTIONS AND FUTURES
Upon the purchase of a put option or a call option by a Fund, the premium paid
is recorded as an investment, the value of which is marked-to-market daily. When
a purchased option expires, the Fund will realize a loss in the amount of the
cost of the option. When a Fund enters into a closing sale transaction, the Fund
will realize a gain or loss depending on whether the proceeds from the closing
sale transaction are greater or less than the cost of the option. When a Fund
exercises a put option, it will realize a gain or loss from the sale of the
underlying security and the proceeds from such sale will be decreased by the
premium originally paid. When a Fund exercises a call option, the cost of the
security which the Fund purchases upon exercise will be increased by the premium
originally paid.
When a Fund writes a call option or a put option, an amount equal to the premium
received by the Fund is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, the Fund realizes a gain
equal to the amount of the premium received. When a Fund enters into a closing
purchase transaction. The Fund realizes a gain (or loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) without regard to
32
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
any unrealized gain or loss on the underlying security, and the liability
related to the option is eliminated. When a written call option is exercised,
the Fund realizes a gain or loss from the sale of the underlying security and
the proceeds from such sale are increased by the premium originally received.
When a written put option is exercised, the amount of the premium originally
received will reduce the cost of the security that the Fund purchased upon
exercise.
Futures contracts provide for the future sale by one party and the future
purchase by another party of a specified amount of a specified financial
instrument at an agreed upon price, date, time, and place. Upon entering into a
futures contract, the Fund is required to deposit with the broker an amount of
cash or cash equivalents equal to a certain percentage of the contract amount.
This is known as "initial margin." Subsequent payments ("variation margin") are
made or received by the Fund each day, depending on the daily fluctuation of the
value of the contract. The daily changes in contract value are recorded as
unrealized gains or losses and the Fund recognizes a realized gain or loss when
the contract is closed. Futures contracts are valued daily at the settlement
price established by the board of trade or exchange on which they are traded.
SHORT SALES
The Funds may make short sales of securities. A short sale is a transaction in
which the Fund sells a security it does not own (but has borrowed) in
anticipation of a decline in the market price of the security. A Fund may make
short sales to offset a potential decline in a long position or a group of long
positions, or if the Fund believes that a decline in the price of a particular
security or group of securities is likely.
When a Fund makes a short sale, the proceeds it receives are retained by the
broker until the Fund replaces the borrowed security. In order to deliver the
security to the buyer, the Fund must arrange through a broker to borrow the
security, and in so doing, the Fund becomes obligated to replace the security
borrowed at its market price at the time of replacement, whatever that price may
be. The Fund may have to pay a premium to borrow the security. The Fund must
also pay any dividends or interest payable on the security until the Fund
replaces the security.
The Fund's obligation to replace the security borrowed in connection with the
short sale will be secured by collateral deposited with the broker, consisting
of cash or U.S. Government securities or other securities acceptable to the
broker. In addition, with respect to any short sale, other than short sales
against the box, the Fund will be required to maintain collateral consisting of
cash, cash items, or U.S. Government securities segregated with its custodian,
or repurchase agreements allocated to the Fund, in an amount such that the value
of the sum of both collateral deposits is at all times equal to at least 100% of
the current market value of the securities sold short. The deposits do not
33
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
necessarily limit the Fund's potential loss on a short sale, which may exceed
the entire amount of the collateral.
If the price of the security sold short increases between the time of the short
sale and the time the Fund replaces the borrowed security, the Fund will incur a
loss, and if the price declines during this period, the Fund will realize a
capital gain. Any realized gain will be decreased, and any incurred loss
increased, by the amount of transactional costs and any premium, dividend, or
interest which the Fund may have to pay in connection with such short sale.
2. FINANCIAL INSTRUMENTS
As part of its investment program, the Funds may utilize options and futures.
The risk associated with purchasing options is limited to the premium originally
paid. Options written by a Fund involve to varying degrees, risk of loss in
excess of the option value reflected in the Statement of Assets and Liabilities.
The risk in writing a covered call option is that a Fund may forego the
opportunity for profit if the market price of the underlying security increases
and the option is exercised. The risk in writing a covered put option is that a
Fund may incur a loss if the market price of the underlying security decreases
and the option is exercised. In addition, there is the risk that a Fund may not
be able to enter into a closing transaction because of an illiquid secondary
market or, for over-the-counter options, because of the counterparty's inability
to perform.
There are several risks in connection with the use of futures contracts. Futures
contracts involve, to varying degrees, risk of loss in excess of amounts
reflected in the financial statements. The change in the value of futures
contracts primarily corresponds with the value of their underlying instruments,
which may not correlate with the change in the value of the hedged instruments.
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.
In conjunction with the use of options and futures, as well as short sales of
securities, the Funds are required to maintain collateral in various forms. The
Funds use, where appropriate depending upon the financial instrument utilized
and the broker involved, margin deposits at the broker, cash segregated at the
custodian bank, or the repurchase agreements allocated to each Fund as
collateral for options, futures, and securities sold short.
3. FEDERAL INCOME TAXES
The Trust intends to comply with the provisions of the Internal Revenue code
applicable to regulated investment companies and will distribute all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
34
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles 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 those estimates.
5. DEDUCTIONS AND EXPENSES
Although periodic retirement payments to contract owners vary according to the
investment perfor-mance of the portfolios, such expenses are not affected by
expense or mortality experience because CVIC assumes the mortality risk and the
expense risk under the contracts.
The mortality risk assumed by CVIC results from the life annuity payment option
in the contracts in which CVIC agrees to make annuity payments regardless of how
long a particular annuitant or other payee lives. The annuity payments are
determined in accordance with annuity purchase rate provisions established at
the time the contracts are issued. Based on the actual determination of expected
mortality, CVIC is required to fund any deficiency in the annuity payment
reserves from its general account assets.
Prior to the Separate Account Restructuring, a fee equal on an annual basis to
1.25% of the daily value of the Separate Account, was deducted on a daily basis
from each subaccount for the mortality and expense risks. These fees were
$635,000 for the ten months ended October 31, 1998.
Similarly, an administrative charge, equal on an annual basis to 0.15% of the
daily value of the Separate Account, was deducted on a daily basis from each
subaccount for contract administrative charges. These fees were $76,200 for the
ten months ended October 31, 1998.
Effective November 2, 1998, the above fees became the responsibility of CVIC.
6. REPURCHASE AGREEMENTS
The Trust transfers uninvested cash balances into a single joint account, the
daily aggregate balance of which is invested in repurchase agreements
collateralized by U.S. Treasury obligations. Collateral is in the possession of
the Trust's custodian and it is evaluated daily to ensure that its market value
exceeds the delivery value of the repurchase agreements at maturity. As of
December 31, 1998, the repurchase agreements with Fuji Securities, PaineWebber,
Inc., Salomon Smith Barney, Inc.,
35
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Prudential Securities, and Lehman Brothers, Inc. in the joint account and the
collateral was as follows:
<TABLE>
<CAPTION>
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- --------------------------------------- -------------- ----------- -------------
<S> <C> <C> <C>
United States Treasury Notes 4.000%-7.750% $14,528,000 $ 14,522,380
United States Treasury Bonds 13.125% $ 2,540,000 $ 3,000,000
</TABLE>
Risks arise from the possible delay in recovery of potential loss of rights in
the collateral should the issuer of the repurchase agreement fail financially.
PADCO, 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 Trust enters into repurchase agreements to evaluate potential risks.
7. INVESTMENT ADVISORY AND TACTICAL ALLOCATION SERVICES
Under the terms of an investment advisory contract, the Trust pays PADCO
investment advisory fees calculated at an annual percentage rate of one half of
one percent (0.50%) of the average daily net assets of the Money Market Fund and
the U.S. Government Bond Fund, three-quarters of one percent (0.75%) of the
average daily net assets of the Nova Fund, the Precious Metals Fund, and the OTC
Fund, and nine-tenths of one percent (0.90%) of the daily average net assets of
the Ursa Fund and the Juno Fund.
PADCO Service Company, Inc., (the "Servicer") provides tactical allocation
administrative services to the Trust calculated at an annual percentage rate of
two-tenths of one percent (0.20%) of the average daily net assets of the Money
Market Fund, U.S. Government Bond Fund, Precious Metals Fund, and the OTC Fund;
and at an annual rate of one-quarter of one percent (0.25%) of the average daily
net assets of the Nova Fund, the Ursa Fund, and the Juno Fund.
The Servicer also provides other necessary services to the Trust, such as
accounting and auditing services, legal services, custody, printing and mailing,
etc., on a pass-through basis. Such expenses vary from Fund to Fund.
PADCO and the Servicer have voluntarily agreed to waive their investment
advisory and tactical allocation administrative service fees and, if necessary,
to reimburse any Fund expenses which would cause the ratios of expenses to
average net assets to exceed 3.60%, 3.70%, 3.00%, 3.60%, 3.60%, 3.20%, and 3.70%
for the Nova, Ursa, Money Market, OTC, Precious Metals, U.S. Government Bond and
Juno Funds, respectively, effective January 1, 1998. Effective November 2, 1998,
as a result of the transfer of responsibility for mortality and risk fees and
contract administration fees to CVIC, these ratios were reduced by 1.40% in each
case.
36
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
During the year ended December 31, 1998, the following fees and expenses were
waived or reimbursed by PADCO or by the Servicer in the Funds shown:
<TABLE>
<CAPTION>
TACTICAL MISCELLANEOUS TOTAL FEES AND
ADVISORY ALLOCATION EXPENSES EXPENSES WAIVED/
FEES WAIVED FEES WAIVED REIMBURSED REIMBURSED
------------ ------------ -------------- -----------------
<S> <C> <C> <C> <C>
Nova $ 5,691 $ -- $ -- $ 5,691
Ursa 9,572 -- -- 9,572
U.S. Government Money Market 62,019 20,511 7,736 90,266
OTC -- -- -- --
Precious Metals 1,612 -- -- 1,612
U.S. Government Bond -- -- -- --
Juno 694 -- 3,170 3,864
------------ ------------ -------------- -----------------
Total $79,588 $20,511 $10,906 $111,005
------------ ------------ -------------- -----------------
</TABLE>
Effective October 24, 1997 through October 24, 1999, the Funds are required to
reimburse PADCO and the Servicer for these expenses, provided that average net
assets have grown or expenses have declined sufficiently to allow reimbursement
without causing the Funds' ratio of expenses to average net assets to exceed the
specified rates. In addition to the potential reimbursement of the amounts shown
above, fees and expenses waived or reimbursed by PADCO or by the Servicer during
the period ended December 31, 1997, totaling $427,757 as previously disclosed,
are also subject to reimbursement to PADCO and the Servicer, if the ratio of
expenses to average net assets of any Fund drops below the ratio specified for
that Fund.
8. SECURITIES TRANSACTIONS
During the year ended December 31, 1998 purchases and sales of investment
securities were:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND JUNO
------- ------- ----------- -------------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases $ -- $ -- $ -- $ 149,764,328 $ 18,910,740 $ 22,639,412 $ --
Sales $ -- $ -- $ -- $ 139,081,735 $ 18,031,591 $ 18,759,994 $ --
</TABLE>
The transactions shown above exclude short-term and temporary cash investments.
37
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. NET ASSETS
Net assets consisted of the following at December 31, 1998:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND JUNO
----------- ----------- ----------- ----------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Paid-In Capital $25,455,435 $ 7,461,467 $40,224,384 $13,694,863 $3,367,841 $4,978,652 $105,063
Undistributed Net Investment Income 70,065 47,093 746,243 -- -- 25,292 9,251
Accumulated Net Realized Gain (Loss) on
Investments 1,512,792 (1,913,606) -- 2,969,558 (721,686) (10,525 ) (46,411)
Net Unrealized Appreciation
(Depreciation) on Investments,
Options and Futures Contracts 2,219,402 (85,974) -- 5,373,261 48,875 (20,703 ) 897
----------- ----------- ----------- ----------- ---------- ---------- --------
Net Assets $29,257,694 $ 5,508,980 $40,970,627 $22,037,682 $2,695,030 $4,972,716 $ 68,800
----------- ----------- ----------- ----------- ---------- ---------- --------
----------- ----------- ----------- ----------- ---------- ---------- --------
</TABLE>
10. SHARE TRANSACTIONS
Transactions in shares for the year ended December 31, 1998 were:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased 30,899,625 38,101,331 131,244,147 12,540,353 2,877,138 1,880,535
Dividend Reinvestment -- -- 215,212 -- -- 1,435
------------ ------------ ------------ ------------ ----------- -----------
Total Purchased 30,899,625 38,101,331 131,459,359 12,540,353 2,877,138 1,881,970
Shares Issued for Restructuring* -- -- 29,078,048 -- -- --
Shares Withdrawn (29,913,354) (37,583,808) (121,301,754) (11,636,468) (2,486,791) (1,582,992)
------------ ------------ ------------ ------------ ----------- -----------
Net Shares Purchased 986,271 517,523 39,235,653 903,885 390,347 298,978
------------ ------------ ------------ ------------ ----------- -----------
------------ ------------ ------------ ------------ ----------- -----------
<CAPTION>
JUNO
----------
<S> <C>
Shares Purchased 688,698
Dividend Reinvestment --
----------
Total Purchased 688,698
Shares Issued for Restructuring* --
Shares Withdrawn (680,511)
----------
Net Shares Purchased 8,187
----------
----------
</TABLE>
* Additional shares in U.S. Government Money Market Fund were issued as a result
of the Separate Account Restructuring on November 2, 1998 (refer to Note 1).
Transactions in shares for the period ended December 31, 1997 were:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased 6,454,734 5,384,612 11,946,671 1,654,828 500,396 358,829
Shares Withdrawn (5,598,872) (5,027,828) (10,211,697) (1,432,611) (426,569) (283,336)
------------ ------------ ------------ ------------ ----------- -----------
Net Shares Purchased 855,862 356,784 1,734,974 222,217 73,827 75,493
------------ ------------ ------------ ------------ ----------- -----------
------------ ------------ ------------ ------------ ----------- -----------
<CAPTION>
JUNO
----------
<S> <C>
Shares Purchased 683,854
Shares Withdrawn (683,854)
----------
Net Shares Purchased --
----------
----------
</TABLE>
38
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Transactions in dollars for the year ended December 31, 1998 were:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND
------------- ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased $ 419,952,323 $ 276,426,278 $ 559,383,619 $ 178,243,785 $ 19,872,131 $ 24,089,105
Dividend Reinvestment -- -- 215,212 -- -- 18,864
------------- ------------- ------------- ------------- ------------ ------------
Total Purchased 419,952,323 276,426,278 559,598,831 178,243,785 19,872,131 24,107,969
Shares Withdrawn (404,608,219) (272,178,829) (537,056,181) (166,694,207) (17,324,929) (19,983,929)
------------- ------------- ------------- ------------- ------------ ------------
Net Shares Purchased $ 15,344,104 $ 4,247,449 $ 22,542,650 $ 11,549,578 $ 2,547,202 $ 4,124,040
------------- ------------- ------------- ------------- ------------ ------------
------------- ------------- ------------- ------------- ------------ ------------
<CAPTION>
JUNO
-----------
<S> <C>
Shares Purchased $ 6,011,996
Dividend Reinvestment --
-----------
Total Purchased 6,011,996
Shares Withdrawn (5,927,097)
-----------
Net Shares Purchased $ 84,899
-----------
-----------
</TABLE>
Transactions in dollars for the period ended December 31, 1997 were:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND
------------- ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased $ 76,198,580 $ 45,239,040 $ 122,126,822 $ 18,825,274 $ 4,476,176 $ 3,840,174
Shares Withdrawn (66,087,249) (42,025,022) (104,445,088) (16,255,190) (3,626,858) (2,985,562)
------------- ------------- ------------- ------------- ------------ ------------
Net Shares Purchased $ 10,111,331 $ 3,214,018 $ 17,681,734 $ 2,570,084 $ 849,318 $ 854,612
------------- ------------- ------------- ------------- ------------ ------------
------------- ------------- ------------- ------------- ------------ ------------
<CAPTION>
JUNO
-----------
<S> <C>
Shares Purchased $ 6,578,572
Shares Withdrawn (6,558,408)
-----------
Net Shares Purchased $ 20,164
-----------
-----------
</TABLE>
11. NET UNREALIZED APPRECIATION/DEPRECIATION OF SECURITIES
At December 31, 1998 unrealized appreciation (depreciation) and cost of
investment securities for Federal income tax purposes were:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT U.S.
MONEY PRECIOUS GOVERNMENT
NOVA URSA MARKET OTC METALS BOND
------------- ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation $ 1,581,087 $ -- $ -- $ 3,061,667 $ -- $ --
Gross Unrealized (Depreciation) -- (85,890) -- (3,013) (428,501) (22,604)
------------- ------------- ------------- ------------- ------------ ------------
Net Unrealized Appreciation/
(Depreciation) $ 1,581,087 $ (85,890) -- $ 3,058,654 $ (428,501) $ (22,604)
------------- ------------- ------------- ------------- ------------ ------------
------------- ------------- ------------- ------------- ------------ ------------
Cost of Investments for Federal Income
Tax Purposes $ 31,773,524 $ 768,886 $ 43,446,992 $ 19,211,656 $ 2,035,788 $ 4,966,276
<CAPTION>
JUNO
-----------
<S> <C>
Gross Unrealized Appreciation $ 897
Gross Unrealized (Depreciation) --
-----------
Net Unrealized Appreciation/
(Depreciation) $ 897
-----------
-----------
Cost of Investments for Federal Income
Tax Purposes $ 2,384
</TABLE>
The cost of investment securities differs for financial statement and tax
purposes primarily because of deferred losses on wash sales.
39
<PAGE>
RYDEX VARIABLE TRUST
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
12. OPTION CONTRACTS WRITTEN
During the year ended December 31, 1998 contracts written were:
Put Options Written:
<TABLE>
<CAPTION>
OTC
----------------------
NUMBER OF INITIAL
CONTRACTS PREMIUMS
--------- ----------
<S> <C> <C>
Outstanding at Beginning of Year 2 $ 7,994
Options Written 45 79,050
Options Terminated (47) (87,044)
--- ----------
Outstanding at End of Year 0 $ 0
--- ----------
--- ----------
</TABLE>
13. LOSS CARRYFORWARD -- FEDERAL INCOME TAX
At December 31, 1998, for Federal income tax purposes, the following Funds have
capital loss carryovers which may be applied against future net taxable realized
gains of each succeeding year until the earlier of its utilization or
expiration.
<TABLE>
<CAPTION>
EXPIRES
DECEMBER 31 U.S. GOVERNMENT BOND URSA
- --------------------------------------- --------------------- --------------
<S> <C> <C>
2006 $146,093 $ 613,636
</TABLE>
40
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholder and Board of Trustees,
Rydex Variable Trust:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Nova, Ursa, U.S. Government Money Market,
OTC, Precious Metals, U.S. Government Bond, and Juno Funds (the "Funds") of the
Rydex Variable Trust (the "Trust"), formerly the Rydex Advisor Variable Annuity
Account, as of December 31, 1998, and the related statements of operations,
changes in net assets, and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
statements of changes in net assets and financial highlights of the Rydex
Advisor Variable Annuity Account for the periods ended December 31, 1997 were
audited by other auditors whose report, dated March 6, 1998, expressed an
unqualified opinion on those statements of changes in net assets and financial
highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Nova, Ursa, U.S. Government Money Market, OTC, Precious Metals, U.S. Government
Bond and Juno Funds of the Rydex Variable Trust, as of December 31, 1998, the
results of their operations, the changes in their net assets, and the financial
highlights for the year then ended in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
Princeton, New Jersey
February 12, 1999
<PAGE>
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF OUR SHAREHOLDER. THE REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
[LOGO]
RYDEX VARIABLE TRUST
ANNUAL REPORT
DECEMBER 31, 1998
NOVA FUND
URSA FUND
U.S. GOVERNMENT
MONEY MARKET FUND
OTC FUND
PRECIOUS METALS FUND
U.S. GOVERNMENT BOND FUND
JUNO FUND
