MAXIM SERIES FUND, INC.
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Maxim Money Market Portfolio Maxim T. Rowe Price Equity/Income Portfolio
Maxim INVESCO Balanced Portfolio Maxim Growth Index Portfolio
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(the "Portfolios")
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8515 East Orchard Road
Englewood, CO 80111
(800) 338 - 4015
This Prospectus describes four Portfolios of Maxim Series Fund, Inc. (the
"Fund"). Two are "Equity Portfolios," one of is a "Debt Portfolio" (the Money
Market Portfolio) and one is a "Balanced Portfolio." GW Capital Management, LLC
("GW Capital Management"), a wholly owned subsidiary of Great-West Life &
Annuity Insurance Company, serves as investment adviser to each of the
Portfolios. Two of the Portfolios are managed on a day-to-day basis by
"Sub-Advisers" hired by GW Capital Management.
Each Portfolio operates as a separate mutual fund and has its own investment
objectives and strategies. The Fund, however, is available only as an investment
option for certain variable annuity contracts, variable life insurance policies
and certain qualified retirement plans. Therefore you cannot purchase shares of
the Portfolios.
This Prospectus contains important information about each Portfolio that you
should consider before investing. Please read it carefully and save it for
future reference.
This Prospectus does not constitute an offer to sell securities in any state or
other jurisdiction to any person to whom it is unlawful to make such an offer in
such state or other jurisdiction.
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the accuracy or
adequacy of this Prospectus. Any representation
to the contrary is a criminal offense.
The date of this Prospectus is May 1, 2000.
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CONTENTS
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The Portfolios at a Glance ..............................................................................
Maxim Money Market Portfolio
Maxim T. Rowe Price Equity/Income Portfolio
Maxim INVESCO Balanced Portfolio
Maxim Growth Index Portfolio
Fees and Expenses........................................................................................
Examples.................................................................................................
More Information About the Portfolios ...................................................................
The Equity Portfolios
The Money Market Portfolio
The Balanced Portfolio
Other Investment Practices ..............................................................................
Management of the Portfolios.............................................................................
Important Information About Your Investment..............................................................
Financial Highlights......................................................................................
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<PAGE>
THE PORTFOLIOS AT A GLANCE
The following information about each Portfolio is only a summary of important
information you should know. More detailed information about the Portfolios'
investment strategies and risks is included elsewhere in this Prospectus. Please
read this prospectus carefully before investing in any of the Portfolios.
THE MAXIM MONEY MARKET PORTFOLIO
The investment objective for this Portfolio is to:
o Seek as high a level of current income as is consistent with the preservation
of capital and liquidity.
Principal investment strategies. This Portfolio will:
o Invest in high-quality, short-term debt securities. These securities will
have a rating in one of the two highest rating categories for short-term
debt obligations by at least one nationally recognized statistical rating
organization such as Moody's Investor Services, Inc. ("Moody's) or Standard
& Poor's Corporation ("S&P") (or unrated securities of comparable quality).
o Invest in securities which are only denominated in U.S. dollars.
The principal investment risks for this Portfolio include:
Possible loss of money
o You should know that an investment in the Portfolio is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Portfolio seeks to preserve the value of
your investment at $1.00 per share, it is possible your shares could be
worth less than $1.00 per share when you sell them.
Interest rate risk
o The market value of a money market instrument is affected by changes in
interest rates. When interest rates rise, the market value of money market
instruments declines and when interest rates decline, market value rises.
When interest rates rise, money market instruments which can be purchased
by the Portfolio will have higher yields.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance for the last ten
calendar years. The table shows how the Portfolio's average annual total return
compared to the performance of a broad based securities market index. The
returns shown below are historical and are not an indication of future
performance. Total return figures include the effect of the Portfolio's
recurring expenses, but do not include fees and expenses of any variable
insurance product. If those charges were reflected, the performance shown would
have been lower.
Year-by-Year
[CHART OMITTED]
1990 7.64%
1991 5.80%
1992 3.49%
1993 2.81%
1994 3.80%
1995 5.62%
1996 5.04%
1997 5.24%
1998 5.15%
1999 4.81%
During the periods shown in the chart for the Maxim Money Market Portfolio, the
highest return for a quarter was 1.94% (quarter ending September, 1990) and the
lowest return for a quarter was 0.67% (quarter ending , September, 1993).
Yield
Yield and effective yield will fluctuate and may not provide a basis for
comparison with bank deposits, other mutual funds or other investments which are
insured or pay a fixed yield for a stated period of time. Yields are based on
past results and are not an indication of future performance. The yield figures
include the effect of the Portfolio's recurring expenses, but do not include
fees and expenses of any variable insurance product. If those charges were
reflected, the performance shown would have been lower.
As of December 31, 1999, the Money Market Portfolio's 7-day yield and its
effective yield were:
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7-Day Yield Effective Yield
Maxim Money Market Portfolio 5.33% 5.47%
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Maxim T. Rowe Price Equity/Income Portfolio
(Sub-Adviser: T. Rowe Price Associates, Inc.)
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The investment objective of this Portfolio is to:
o Seek substantial dividend income and also long-term capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest primarily in common stocks of well established companies paying
above-average dividends.
o Emphasize companies with favorable prospects for increasing dividend income
and, secondarily, capital appreciation.
o Invest in companies which have some of the following characteristics: o
established operating histories o above-average current dividend yields relative
to Standard & Poor's 500 Stock Index o sound balance sheets and other financial
characteristics o low price/earnings ratio relative to the S&P 500 Index
o low stock price relative to a company's underlying value as
measured by assets, earnings, cash flow or business franchises.
o Invest up to 25% of its total assets in foreign securities.
The principal investment risks for this Portfolio include:
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than
the value of the market as a whole.
Foreign Risk
o Foreign markets, particularly emerging markets, can be more volatile than
the U.S. market due to increased risks of adverse issuer, political, regulatory,
market, currency valuation or economic developments and can perform differently
than the U.S. market. As a result, foreign securities subject the Portfolio to
greater risk of potential loss than U.S. securities.
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
[CHART OMITTED]
1995 33.42%
1996 19.39%
1997 28.82%
1998 8.93%
1999 3.39%
During the periods shown in the chart for the Maxim T. Rowe Price Equity/Income
Portfolio, the highest return for a quarter was 13.14% (quarter ending June,
1999) and the lowest return for a quarter was -8.58% (quarter ending September,
1999).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:
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Since
One Year Five Years Inception
Maxim T. Rowe Price
Equity/Income Portfolio 3.39% 18.24% 17.29%
S&P 500 Index 21.04% 28.56% 26.94%
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The inception date for the Maxim T. Rowe Price Equity/Income Portfolio was
November 1, 1994. The S&P 500 Index is comprised of the stocks that make up the
S&P 500 that trade on the NYSE, the AMEX, or in NASDAQ over-the-counter market.
It is generally acknowledged that the S&P 500 broadly represents the performance
of publicly traded common stocks in the United States.
Maxim INVESCO Balanced Portfolio (Sub-Adviser: INVESCO Funds Group, Inc.)
The investment objective of this Portfolio is to:
o Seek high total return through capital appreciation and current income.
Principal investment strategies. This Portfolio will:
o Invest normally 50% to 70% of its assets in common stocks.
o Invest at least 25% of its assets in debt securities issued by the U.S.
Government, its agencies and instrumentalities, or in investment grade
corporate bonds.
o In selecting equity securities, the Portfolio will:
o seek to identify companies with better-than-average earnings growth potential
o seek to identify companies within industries identified as well-positioned
for the current and expected economic climate
o consider dividend payout records
o seek to identify companies traded on national stock exchanges or in the
over-the counter markets; however, securities traded on regional or foreign
exchanges may also be included.
o Invest up to 25% of total assets in foreign securities; however, securities
of Canadian issuers and American Depository Receipts ("ADRs") are not
subject to this 25% limitation.
The principal investment risks for this Portfolio include:
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than
the value of the market as a whole.
Foreign Risk
o Foreign markets, particularly emerging markets, can be more volatile than the
U.S. market due to increased risks of adverse issuer, political, regulatory,
market, currency valuation or economic developments and can perform differently
than the U.S. market. As a result, foreign securities subject the Portfolio to
greater risk of potential loss than U.S. securities.
Interest Rate Risk
o The market value of a debt security is affected significantly by changes in
interest rates. When interest rates rise, the security's market value
declines and when interest rates decline, market value rises. The longer a
bond's maturity, the greater the risk and the higher its yield. Conversely,
the shorter a bond's maturity, the lower the risk and the lower its yield.
Credit Risk
o A bond's value can also be affected by changes in its credit quality rating
or its issuer's financial conditions.
o An issuer may default on its obligation to pay principal and/or interest.
Portfolio Turnover Risk
o The portfolio turnover rate for this Portfolio in 1999 was in excess of
100%. High portfolio turnover rates generally result in higher transaction
costs (which are borne directly by the Portfolio).
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
1997 26.10%
1998 18.42%
1999 16.74%
During the periods shown in the chart for the Maxim INVESCO Balanced Portfolio,
the highest return for a quarter was 17.03% (quarter ending June, 1997) and the
lowest return for a quarter was -6.73% (quarter ending September, 1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since
One Year Inception
Maxim INVESCO Balanced Portfolio 16.74% 20.30%
S&P 500 Index 21.04% 28.29%
Lehman Intermediate Government/ Corporate
Index 0.39% 5.78%
Lipper Balanced Index 8.98% 58.89%
The inception date for the Maxim INVESCO Balanced Portfolio was October 1, 1996.
The S&P 500 Index is comprised of the stocks that make up the S&P 500 that trade
on the NYSE, the AMEX, or in NASDAQ over-the-counter market. It is generally
acknowledged that the S&P 500 broadly represents the performance of publicly
traded common stocks in the United States. The Lehman Intermediate
Government/Corporate Bond Index is comprised of U.S. Government issued and
investment-grade or better, dollar-denominated, publicly issued corporate bonds
with 1-10 years remaining until maturity. The Lipper Balanced Index is comprised
of the mutual funds covered by the Lipper Survey of Mutual Funds that invest in
a mix of equity and debt securities as a primary investment objective. The
Lipper Balanced Index measures the average performance of the funds included
over various time periods.
MAXIM GROWTH INDEX PORTFOLIO
The investment objective for the Growth Index Portfolio is to:
o Seek investment results that track the total return of the common stocks
that comprise its benchmark index.
Principal investment strategies. The Growth Index Fund will:
o Invest at least 80% of its total assets in common stocks of the S&P/BARRA
Growth Index (the "Benchmark Index").
S&P and BARRA are not sponsors of, or in any other way endorsed, sold or
promoted or affiliated with, the Growth Index Portfolio or Maxim Series Fund.
o Attempt to reproduce the returns of the Benchmark Index by owning the
securities contained in each index in as close as possible a proportion of
the portfolio as each stock's weight in the Benchmark Index. This may be
accomplished through ownership of all the stocks in the Benchmark Index
and/or through a combination of stock ownership and owning futures
contracts on the relevant index and options on futures contracts.
The principal investment risks for the Growth Index Portfolios include:
Index Risk
o It is possible the Benchmark Index may perform unfavorably and/or
underperform the market as a whole. As a result, it is possible that the
Portfolio could have poor investment results even if it is tracking the
return of the Benchmark Index.
Tracking Error Risk
o Several factors will affect the Portfolio's ability to track precisely the
performance of its Benchmark Index. For example, unlike the Benchmark
Index, which is merely unmanaged groups of securities, the Portfolio has
operating expenses and those expenses will reduce the Portfolio's total
return. In addition, the Portfolio may own less than all the securities of
the Benchmark Index, which also may cause a variance between the
performance of the Portfolio and the Benchmark Index.
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than
the value of the market as a whole.
Derivative Risk
o When using futures contracts on market indexes and options on the futures
contracts, there is a risk that the change in value of the securities
included on the index and the price of a futures contract will not match.
There is also a risk that the Portfolio could be unable to sell the futures
contract when it wishes to due to possible illiquidity of those
instruments. Also, there is the risk use of these types of derivative
techniques could cause the Portfolio to lose more money than if the
Portfolio had actually purchased the underlying securities. This is because
derivatives magnify gains and losses.
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Non-Diversification Risk
o Non-diversification risk means a relatively high percentage of the
Portfolio's assets may be invested in securities of a limited number of
issuers, including issuers primarily within the same industry or economic
sector. As a result, the Portfolio's performance may be adversely affected
by any single economic, political or regulatory event.
o When a benchmark index becomes less diversified, the Portfolio which tracks
that index similarly becomes less diversified. This has happened to the Maxim
Growth Index Portfolio. Due to the rapid appreciation of certain stocks in the
S&P/BARRA Growth Index, the Portfolio's top four holdings, as of the date of
this prospectus, represent more than 25% of its total assets. By tracking its
benchmark index, the Portfolio has technically become "non-diversified" under
SEC standards, although it continues to hold more than 100 stock positions in a
variety of market sectors. As the market value of the Portfolio's largest
holdings rise and fall, there may be times when the Portfolio is diversified
under SEC standards and other times when it is not.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Growth Index Portfolios. The bar charts show the Portfolio's performance in
each full calendar year since inception. The table shows how the Portfolio's
average annual total return compared to the performance of its Benchmark Index.
The returns shown below are historical and are not an indication of future
performance. Total return figures include the effect of the Portfolio's
recurring expenses, but do not include fees and expenses of any variable
insurance product. If those charges were reflected, the performance shown would
have been lower.
Year-by-Year
1994 1.93%
1995 35.29%
1996 22.10%
1997 29.26%
1998 37.28%
1999 26.87%
During the periods shown in the chart for the Maxim Growth Index Portfolio, the
highest return for a quarter was 26.28% (quarter ending December, 1998) and the
lowest return for a quarter was -9.21% (quarter ending September, 1998).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:
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Since Inception
One Year Five Years
Maxim Growth Index Portfolio 26.87% 30.04% 24.65%
S&P/BARRA Growth Index 28.25% 33.64% 25.77%
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The inception date for the Maxim Growth Index Portfolio was December 1, 1993. On
July 26, 1999, pursuant to a vote of the majority of shareholders, the Portfolio
changed its investment objective so that it now seeks investment results that
track the total return of the common stocks that comprise the S&P/BARRA Growth
Index. Prior to the change in objective, the Portfolio compared its performance
to that of the Russell 1000 Growth Index. Consistent with its change in
investment objective, the Portfolio now compares its performance to that of the
S&P/BARRA Growth Index, the Portfolio's new benchmark index.
The S&P/BARRA Growth Index (the "Growth Index") is a widely recognized,
unmanaged index that contains half of the market value of the S&P 500. The
Growth Index is comprised of the stocks representing half of the total market
value of the S&P 500 with the highest price-to-book value ratios.
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FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Portfolios.
SHAREHOLDER FEES (fees paid directly from your investment)
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Sales Load Imposed on Purchases...............................................................NONE
Sales Load Imposed on Reinvested Dividends....................................................NONE
Deferred Sales Load...........................................................................NONE
Redemption Fees...............................................................................NONE
Exchange Fees.................................................................................NONE
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ANNUAL PORTFOLIO OPERATING EXPENSES (expenses that are deducted from Portfolio
assets)
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- ------------------------------ ------------------- --------------------- --------------------- ---------------------
Maxim Maxim INVESCO Maxim T. Rowe Price Maxim
Money Balanced Equity/ Growth Index
Market Income
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
Management Fees 0.46% 1.00% 0.80% 0.60%
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
Distribution (12b-1) Fees NONE NONE NONE NONE
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
Other Expenses 0.00% 0.00% 0.08% 0.00%
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
Total Annual Portfolio
Operating Expenses 0.46% 1.00% 0.88% 0.60%
- ------------------------------ ------------------- --------------------- --------------------- ---------------------
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Examples
These examples are intended to help you compare the cost of investing in the
Portfolios with the cost of investing in other mutual funds.
The Examples assume that you invest $10,000 in the Portfolio for the time
periods indicated and then redeem all of your shares at the end of those
periods. The Examples also assume that your investment has a 5% return each year
and that the Portfolio's operating expenses are the amount show in the fee table
and remain the same for the years shown.
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Portfolio 1 Year 3 Years 5 Years 10 Years
Maxim Money Market $47 $149 $261 $593
Maxim T. Rowe Price Equity/Income $90 $284 $498 $1,135
Maxim INVESCO Balanced $103 $323 $566 $1,289
Maxim Growth Index $62 $194 $340 $774
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MORE INFORMATION ABOUT THE PORTFOLIOS
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Some of the Portfolios are managed by sub-advisers which manage
other mutual funds having similar names and investment
objectives. While some of the Portfolios may be similar to, and
may in fact be modeled after, other mutual funds, you should
understand that the Portfolios are not otherwise directly related
to any other mutual funds. Consequently, the investment
performance of other mutual funds and any similarly-named
Portfolio may differ substantially.
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Each Portfolio follows a distinct set of investment strategies. Two Portfolios
are considered to be "Equity Portfolios" because they invest primarily in equity
securities (mostly common stocks). One Portfolio (the Money Market Portfolio) is
considered to be a "Debt Portfolio" because it invests primarily in debt
securities (mostly bonds). One Portfolio is considered to be a "Balanced
Portfolio" because its principal investment strategy is to invest in a mix of
debt and equity securities. All percentage limitations relating to the
Portfolios' investment strategies are applied at the time a Portfolio acquires a
security.
Equity Portfolios
Each of the Equity Portfolios will normally invest at least 65% of its assets in
equity securities. Therefore, as an investor in an Equity Portfolio, the return
on your investment will be based primarily on the risks and rewards of equity
securities. The Equity Portfolios include:
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o Maxim T. Rowe Price Equity/Income Portfolio o Maxim Growth Index Portfolio
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Common stocks represent partial ownership in a company and entitle stockholders
to share in the company's profits (or losses). Common stocks also entitle the
holder to share in any of the company's dividends. The value of a company's
stock may fall as a result of factors which directly relate to that company,
such as lower demand for the company's products or services or poor management
decisions. A stock's value may also fall because of economic conditions which
affect many companies, such as increases in production costs. The value of a
company's stock may also be affected by changes in financial market conditions
that are not directly related to the company or its industry, such as changes in
interest rates or currency exchange rates. In addition, a company's stock
generally pays dividends only after the company makes required payments to
holders of its bonds and other debt. For this reason, the value of the stock
will usually react more strongly than bonds and other debt to actual or
perceived changes in company's financial condition or progress.
As a general matter, other types of equity securities are subject to many of the
same risks as common stocks.
The Equity Portfolios may invest in common stocks and other equity securities of
U.S. and foreign companies, but none of the Portfolios described in this
Prospectus will pursue investments in foreign securities as a principal
investment strategy. Equity investments in foreign companies present special
risks and other considerations - these are discussed below under "Foreign
Securities" on page .
The Equity Portfolios may invest in money market instruments and other types of
debt securities, either as a cash reserve or for other appropriate reasons. Debt
securities are discussed below under "Debt Portfolios." Each Portfolio may
invest in derivatives in order to hedge against market risk or reduce interest
rate or credit risk. Derivatives are discussed below under "Derivatives" on page
xx.
Index Portfolios
One of the Equity Portfolios (the Maxim Growth Index Portfolio) is an Index
Portfolio. This means it is not actively managed, but is designed to track the
performance of a specified benchmark. The benchmark index for the Maxim Growth
Index Portfolio is the S&P/BARRA Growth Index (the "Growth Index") is a widely
recognized, unmanaged index that contains half of the market value of the S&P
500 Composite Stock Price Index** (the "S&P 500). The Growth Index is comprised
of the stocks representing half of the total market value of the S&P 500 with
the highest price-to-book value ratios. The S&P 500 is a widely recognized,
unmanaged, market-value weighted index of 500 stock prices. It is generally
acknowledged that the S&P 500 broadly represents the performance of publicly
traded common stocks in the United States.
**Standard & Poor's(R)", "S&P(R)", "S&P 500(R)" and "S&P 500/BARRA Growth
Index," are trademarks of The McGraw-Hill Companies, Inc. and have been licensed
for use by the Company. Maxim Series Fund is not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in Maxim Series Fund.
The S&P 500 and S&P/BARRA Growth Index are sponsored by Standard & Poor's, which
is responsible for determining which stocks are represented on the indices.
The Maxim Growth Index Portfolio is not endorsed, sold or promoted by any of the
sponsors of the Growth Index (the "Sponsors"), and no Sponsor is an affiliate or
a sponsor of the Fund, the Portfolios or GW Capital Management. The Sponsors are
not responsible for and do not participate in the operation or management of any
Portfolio, nor do they guarantee the accuracy or completeness of the Growth
Index or the data therein. Inclusion of a stock in the Growth Index does not
imply that it is a good investment.
Total returns for the S&P 500 and Growth Index assume reinvestment of dividends,
but do not include the effect of taxes, brokerage commissions or other costs you
would pay if you actually invested in those stocks.
Money Market Portfolio, Money Market Instruments and Temporary Investment
Strategies
The Maxim Money Market Portfolio invests exclusively in money market instruments
as its investment strategy. Therefore, the value of your investment in the Maxim
Money Market Portfolio will be determined exclusively by the rewards and risks
relating to money market instruments.
Money market instruments include a variety of short-term debt securities,
usually with a maturity of less than 13 months. Some common types of money
market instruments include Treasury bills and notes, which are securities issued
by the U.S. Government, commercial paper, which is a promissory note issued by a
company, bankers' acceptances, which are credit instruments guaranteed by a
bank, and negotiable certificates of deposit, which are issued by banks in large
denominations.
The manager of the Maxim Money Market Portfolio selects securities with a rating
in one of the two highest rating categories for short-term debt obligations by
at least one nationally recognized statistical rating organization such as
Moody's Investor Services, Inc. or Standard & Poor's Corporation (or unrated
securities of comparable quality).
Temporary Investment Strategies
In addition to the Money Market Portfolio, the other Portfolios each may hold
cash or cash equivalents and may invest in money market instruments as deemed
appropriate by GW Capital Management or the Portfolio's sub-adviser. Each
non-Money Market Portfolio may invest up to 100% of its assets in money market
instruments as deemed necessary by GW Capital Management, or the Portfolio's
sub-adviser, for temporary defensive purposes to respond to adverse market,
economic or political conditions, or as a cash reserve. Should a Portfolio take
this action, it may not achieve its investment objective.
Balanced Portfolio
The Maxim INVESCO Balanced Portfolio's principal investment strategy is to
invest in both debt securities and equity securities. As such, the Portfolio
will be subject primarily to the risks discussed above under "Equity Securities"
and "Debt Securities." The Maxim INVESCO Balanced Portfolio is required to
invest at least 50% of its assets in equity securities and at least 25% in debt
securities. However, the Portfolio's day-to-day investment allocation mix among
equity and debt securities will be determined by the Sub-Adviser based on the
Sub-Adviser's perception of prevailing market conditions and risks. By investing
in both debt and equity securities, it is anticipated that the Portfolio will
generally be less volatile than the overall market.
The Maxim INVESCO Balanced Portfolio has the flexibility to invest up to 25% of
its assets in foreign securities. Investments in foreign securities present
special risks and other considerations; these are discussed below under "Foreign
Securities" at page ______. Similar to the Equity Funds, this Portfolio may also
engage in various types of "derivative" transactions to protect the value of its
investments. Risks associated with derivative transactions are discussed in
"Derivatives" below at page ____.
OTHER INVESTMENT PRACTICES
Debt Securities
Debt securities include money market instruments, bonds, securities issued by
the U.S. Government and its agencies, including mortgage pass-through securities
and collateralized mortgage obligations issued by both government agency and
private issuers.
Debt securities are used by issuers to borrow money from investors. The issuer
pays the investor a fixed or variable rate of interest and must repay the amount
borrowed at maturity. In general, bond prices rise when interest rates fall, and
vice versa. Debt securities have varying degrees of quality and varying levels
of sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds. This sensitivity
to interest rates is also referred to as "interest rate risk."
Debt obligations are rated based on their estimated credit risks by independent
services such as S&P and Moody's. "Credit risk" relates to the issuer's ability
to make payments of principal and interest when due.
The lower a bond's quality, the more it is subject to credit risk and interest
rate risk and the more speculative it becomes.
Investment grade securities are those rated in one of the four highest rating
categories by S&P or Moody's or, if unrated, are judged to be of comparable
quality. Debt securities rated in the fourth highest rating categories by S&P or
Moody's and unrated securities of comparable quality are viewed as having
adequate capacity for payment of principal and interest, but do involve a higher
degree of risk than that associated with investments in the higher rating
categories. Money market instruments are short-term debt securities of the
highest investment grade quality. They are discussed separately above under
"Money Market Portfolio, Money Market Instruments and Temporary Investment
Strategies."
Securities rated below investment grade are commonly referred to as "high
yield-high risk securities" or "junk bonds." These securities are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal in accordance with the terms of the obligations. It is, therefore,
possible that these types of factors could in certain instances, reduce the
value of securities held with a commensurate effect on share value. The Maxim T.
Rowe Price Equity/Income Portfolio may invest in below investment grade debt
securities.
Foreign Securities
None of the Portfolios described in this Prospectus pursue investment in foreign
securities as their principal investment strategy. However, the Maxim T. Rowe
Price Equity/Income and Maxim INVESCO Balanced Portfolios may, in a manner
consistent with their respective investment objective and policies, invest in
foreign securities. Accordingly, as an investor in these Portfolios, you also
should be aware of the risks associated with foreign securities investments.
Exposure to foreign markets, however, should be minimized to the extent these
Portfolios invest primarily in securities of U.S. issuers.
Debt and equity securities of foreign companies and governments generally have
the same risk characteristics as those issued by the U.S. government and U.S.
companies. In addition, foreign investments present other risks and
considerations not presented by U.S. investments. Investments in foreign
securities may cause a Portfolio to lose money when converting investments from
foreign currencies into U.S. dollars due to unfavorable currency exchange rates.
Investments in foreign securities also subject a Portfolio to the adverse
political or economic conditions of the foreign country. These risks increase in
the case of "emerging market" countries which are more likely to be politically
and economically unstable. Foreign countries, especially emerging market
countries, may prevent or delay a Portfolio from selling its investments and
taking money out of the country. In addition, foreign securities may not be as
liquid as U.S. securities which could result in a Portfolio being unable to sell
its investments in a timely manner. Foreign countries, especially emerging
market countries, also have less stringent investor protection, disclosure and
accounting standards than the U.S. As a result, there is generally less publicly
available information about foreign companies than U.S. companies.
ADRs are negotiable certificates, issued by a U.S. depository bank, which
represent an ownership interest in shares of non-U.S. companies that are being
held by a U.S. depository bank. Each ADR may represent one ordinary share (or a
fraction or multiple of an ordinary share) on deposit at the depository bank.
The foreign shares held by the depository bank are known as American Depository
Shares (ADSs). Although there is a technical distinction between ADRs and ADSs,
market participants often use the two terms interchangeably. ADRs are traded
freely on U.S. exchanges or in the U.S. over-the-counter market. ADRs can be
issued under different types of ADR programs, and, as a result, some ADRs may
not be registered with the SEC.
ADRs are a convenient alternative to direct purchases of shares on foreign stock
exchanges. Although they offer investment characteristics that are virtually
identical to the underlying ordinary shares, they are often as easy to trade as
stocks of U.S. domiciled companies. A high level of geographic and industry
diversification can be achieved using ADRs, with all transactions and dividends
being in U.S. dollars and annual reports and shareholder literature printed in
English.
Derivatives
Each Portfolio, other than the Maxim Money Market Portfolio, can use various
techniques to increase or decrease its exposure to changing security prices,
currency exchange rates, or other factors that affect security values. These
techniques are also referred to as "derivative" transactions.
Derivatives are financial instruments designed to achieve a certain economic
result when an underlying security, index, interest rate, commodity, or other
financial instrument moves in price. Derivatives may be used by the Portfolios
to hedge investments or manage interest or currency-sensitive assets. The Index
Portfolios may purchase and sell derivative instruments (futures contracts on
the Benchmark Index and options thereon) as part of their principal investment
strategy. The other non-Index Portfolios which may enter into derivative
transactions will do so only to protect the value of its investments and not for
speculative purposes. Derivatives can, however, subject a Portfolio to various
levels of risk. There are four basic derivative products: forward contracts,
futures contracts, options and swaps.
Forward contracts commit the parties to buy or sell an asset at a time in the
future at a price determined when the transaction is initiated. They are the
predominant means of hedging currency or commodity exposures. Futures contracts
are similar to forwards but differ in that (1) they are traded through regulated
exchanges, and (2) are "marked to market" daily.
Options differ from forwards and futures in that the buyer has no obligation to
perform under the contract. The buyer pays a fee, called a premium, to the
seller, who is called a writer. The writer gets to keep the premium in any event
but must deliver (in the context of the type of option) at the buyer's demand.
Caps and floors are specialized options which enable floating-rate borrowers and
lenders to reduce their exposure to interest rate swings for a fee.
A swap is an agreement between two parties to exchange certain financial
instruments or components of financial instruments. Parties may exchange streams
of interest rate payments, principal denominated in two different currencies, or
virtually any payment stream as defined by the parties.
Derivatives involve special risks. If GW Capital Management or a sub-adviser
judges market conditions incorrectly or employs a strategy that does not
correlate well with a Portfolio's investments, these techniques could result in
a loss. These techniques may increase the volatility of a Portfolio and may
involve a small investment of cash relative to the magnitude of the risk
assumed. Thus, it is possible for a Portfolio to lose more than its original
investment in a derivatives transactions. In addition, these techniques could
result in a loss if the counterparty to the transaction does not perform as
promised.
Derivative transactions may not always be available and/or may be infeasible to
use due to the associated costs.
Other Risk Factors Associated with the Portfolios
As a mutual fund, each Portfolio is subject to market risk. The value of a
Portfolio's shares will fluctuate in response to changes in economic conditions,
interest rates, and the market's perception of the securities held by the
Portfolio.
No Portfolio should be considered to be a complete investment program by itself.
You should consider your own investment objectives and tolerance for risk, as
well as your other investments when deciding whether to purchase shares of any
Portfolio.
A complete listing of the Portfolios' investment limitations and more detailed
information about their investment practices are contained in the Statement of
Additional Information.
MANAGEMENT OF THE PORTFOLIOS
GW Capital Management provides investment advisory, accounting and
administrative services to the Fund. GW Capital Management's address is 8515
East Orchard Road, Englewood, Colorado 80111. GW Capital Management provides
investment management services for mutual funds and other investment portfolios
representing assets of over $5.7 billion. GW Capital Management and its
affiliates have been providing investment management services since 1969.
The management fee paid to GW Capital Management is as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Portfolio Percentage of Average Net Assets
Maxim Money Market 0.46%
Maxim T. Rowe Price Equity/Income 0.80%
Maxim INVESCO Balanced 1.00%
Maxim Growth Index 0.60%
</TABLE>
For those Portfolios that are `directly' advised by GW Capital Management (i.e.,
without the assistance of a sub-adviser), namely the Maxim Money Market and
Maxim Growth Index Portfolios, GW Capital Management uses teams of professionals
to manage the assets of those Portfolios. Each Portfolio has a separate team and
all of the members of the team are jointly and primarily responsible for the
day-to-day management of their respective Portfolios. The teams meet regularly
to review Portfolio holdings and to discuss purchase and sale activity. Team
members buy and sell securities for a Portfolio as they see fit, guided by the
Portfolio's investment objective and strategy.
Sub-Advisers
For some of the Portfolios, GW Capital Management has entered into an agreement
with a sub-adviser. This means that the sub-adviser is responsible for the daily
management of the Portfolio and for making decisions to buy, sell or hold any
particular security. Each sub-adviser's management activities are subject to
review and supervision by GW Capital Management and the Board of Directors of
the Fund. Each sub-adviser bears all expenses in connection with the performance
of its services, such as compensating and furnishing office space for its
officers and employees connected with investment and economic research, trading
and investment management of the Portfolio. GW Capital Management, in turn, pays
sub-advisory fees to each sub-adviser for its services.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
INVESCO Funds Group, Inc. T. Rowe Price Associates, Inc.
- ------------------------- ------------------------------
Maxim INVESCO Balanced Portfolio Maxim T. Rowe Price Equity/Income Portfolio
</TABLE>
Following is additional information about each sub-adviser:
T. Rowe Price Associates, Inc. ("T. Rowe Price") is a Maryland corporation,
registered as an investment adviser with the Securities and Exchange Commission.
Its principal business address is 100 East Pratt Street, Baltimore, Maryland
21202.
The Maxim T. Rowe Price Equity/Income Portfolio is managed by an Investment
Advisory Committee chaired by Brian C. Rogers. The committee chairman has
day-to-day responsibility for managing the Portfolio and works with the
committee in developing and executing the Portfolio's investment program. This
investment committee also serves as the investment committee for the T. Rowe
Price Equity Income Fund. Mr. Rogers has been chairman of the T. Rowe Price
Equity Income Fund since 1993. He joined T. Rowe Price in 1982 and has been
managing investments since 1983.
INVESCO Funds Group, Inc. ("INVESCO") is a Delaware corporation and an indirect
wholly-owned subsidiary of AMVESCAP PLC. INVESCO is registered as an Investment
Adviser with the Securities and Exchange Commission. Its principal business
address is 7800 E. Union Avenue, Denver, Colorado, 80237.
The day-to-day management of the Maxim INVESCO Balanced Portfolio is provided by
members of INVESCO's Equity Income and Fixed Income teams which are headed by
Charles P. Mayer and Donovan J. (Jerry) Paul. Mr. Paul, Mr. Mayer and Peter M.
Lovell are primarily responsible for the day-to-day management of the Maxim
INVESCO Balanced Portfolio. Mr. Mayer is primarily responsible for the
day-to-day management of the Portfolio's equity holdings. He is also the
co-portfolio manager for the INVESCO Balanced Fund, since 1996. Mr. Mayer is
also co-portfolio manager of the INVESCO Equity Income Fund, Inc. and INVESCO
VIF-Equity Income Fund. Mr. Mayer began his investment career in 1969 and is now
senior vice president and director of INVESCO ; from 1993 to 1994, he was a vice
president of INVESCO. From 1984 to 1993, he was a portfolio manager with
Westinghouse Pension. Mr. Paul focuses on the fixed income investments for the
Portfolio. Since 1994, he has also served as co-portfolio manager for the
INVESCO Balanced Portfolio; portfolio manager of INVESCO Select Income Fund,
INVESCO High Yield Fund, and INVESCO VIF-High Yield Portfolio; co-portfolio
manager of INVESCO Equity Income Fund, INVESCO VIF- Equity Income Fund and
INVESCO Tax-Free Bond Fund; portfolio manager and senior vice president of
INVESCO. Formerly, Mr. Paul was Senior Vice President and Director of
Fixed-Income Research (1989 to 1992) and portfolio manager (1987 to 1992) with
Stein, Roe and Farnham Inc., and President (1993 to 1994) of Quixote Investment
Management, Inc. Mr. Lovell has served as co-portfolio manager of the INVESCO
Balanced Fund since 1998. Mr. Lovell was previously an equity analyst with
INVESCO's Equity Income team (1996-1999), an equity assistant with INVESCO's
investment division (1994-1996) and co-financial consultant with Merrill Lynch
(1992-1994).
IMPORTANT INFORMATION ABOUT YOUR INVESTMENT
Investing in the Portfolios
Shares of the Portfolios are not for sale directly to the public. Currently, the
Portfolios' shares are sold only to separate accounts of Great-West Life &
Annuity Insurance Company and New England Life Insurance Company to fund
benefits under certain variable annuity contracts, variable life insurance
policies and to participants in connection with qualified retirement plans. In
the future, shares of the Portfolios may be used to fund other variable
contracts offered by Great-West, or its affiliates, or other unrelated insurance
companies. For information concerning your rights under a specific variable
contract, please refer to the applicable prospectus and/or disclosure documents
for that contract.
Purchasing and Redeeming Shares
Variable contract owners or Qualified Plan participants will not deal directly
with the Fund regarding the purchase or redemption of a Portfolio's shares.
Insurance company separate accounts place orders to purchase and redeem shares
of each Portfolio based on allocation instructions received from variable
contract owners. Similarly, Qualified Plan sponsors and administrators purchase
and redeem Portfolio shares based on orders received from participants.
Qualified Plan participants cannot contact the Fund directly to purchase shares
of the Portfolios but may invest in shares of the Portfolios only through their
Qualified Plan. Participants should contact their Qualified Plan sponsor or
administrator for information concerning the appropriate procedure for investing
in the Fund.
Due to differences in tax treatment or other considerations, material
irreconcilable conflicts may arise between the interests of variable annuity
contract owners, variable life insurance policy owners and Qualified Plans that
invest in the Fund. The Board of Directors will monitor each Portfolio for any
material conflicts that may arise and will determine what action should be
taken.
How to Exchange Shares
This section is only applicable to participants in Qualified Plans that purchase
shares of the Fund outside a variable annuity contract.
An exchange involves selling all or a portion of the shares of one Portfolio and
purchasing shares of another Portfolio. There are no sales charges or
distribution fees for an exchange. The exchange will occur at the next net asset
value calculated for the two Portfolios after the exchange request is received
in proper form. Before exchanging into a Portfolio, read its prospectus.
Please note the following policies governing exchanges:
o You can request an exchange in writing or by telephone.
o Written requests should be submitted to:
8505 East Orchard Road, 401(k) Operations Department
Englewood, CO 80111.
o The form should be signed by the account owner(s) and include the
following information:
(1) the name of the account
(2) the account number
(3) the name of the Portfolio from which the shares of which are to be sold
(4) the dollar amount or number of shares to be exchanged
(5) the name of the Portfolio(s) in which new shares will be purchased; and
(6) the signature(s) of the person(s) authorized to effect exchanges in the
account.
o You can request an exchange by telephoning 1-800-338-4015.
o A Portfolio may refuse exchange purchases by any person or group if, in GW
Capital Management's judgment, the Portfolio would be unable to invest the
money effectively in accordance with its investment objective and policies,
or would otherwise potentially be adversely affected.
Other Information
o We may modify, suspend or terminate at any time the policies and procedures
to request an exchange of shares of the Portfolios by telephone.
o If an account has more than one owner of record, we may rely on the
instructions of any one owner. o Each account owner has telephone transaction
privileges unless we receive cancellation instructions from
an account owner.
o We will not be responsible for losses or expenses arising from unauthorized
telephone transactions, as long as we use reasonable procedures to verify
the identity of the investor, such as requesting personal identification
numbers (PINs) and other information.
o All telephone calls will be recorded and we have adopted other procedures
to confirm that telephone instructions are genuine.
During periods of unusual market activity, severe weather, or other unusual,
extreme, or emergency conditions, you may not be able to complete a telephone
transaction and should consider placing your order by mail.
Share Price
The transaction price for buying, selling, or exchanging a Portfolio's shares is
the net asset value of that Portfolio. Each Portfolio's net asset value is
generally calculated as of the close of trading on the New York Stock Exchange
("NYSE") every day the NYSE is open (generally 4:00 p.m. Eastern Time). If the
NYSE closes at any other time, or if an emergency exists, the time at which the
NAV is calculated may differ. To the extent that a Portfolio's assets are traded
in other markets on days when the NYSE is closed, the value of the Portfolio's
assets may be affected on days when the Fund is not open for business. In
addition, trading in some of a Portfolio's assets may not occur on days when the
Fund is open for business. Your share price will be the next net asset value
calculated after we receive your order in good form.
The net asset value of the Maxim Money Market Portfolio is determined by using
the amortized cost method of valuation. Net asset value is based on the market
value of the securities in the Portfolio. Short-term securities with a maturity
of 60 days or less are valued on the basis of amortized cost. If market prices
are not available or if a security's value has been materially affected by
events occurring after the close of the exchange or market on which the security
is principally traded (for example, a foreign exchange or market) , that
security may be valued by another method that the Board of Directors of the Fund
believes accurately reflects fair value.
We determine net asset value by dividing net assets of the Portfolio (the value
of its investments, cash, and other assets minus its liabilities) by the number
of the Portfolio's outstanding shares.
Dividends and Capital Gains Distributions
Each Portfolio earns dividends, interest and other income from its investments,
and distributes this income (less expenses) to shareholders as dividends. Each
Portfolio also realizes capital gains from its investments, and distributes
these gains (less any losses) to shareholders as capital gains distributions.
o The Maxim Money Market Portfolio ordinarily declares dividends from net
investment income daily and distributes dividends monthly.
o The Maxim T. Rowe Price Equity/Income, Maxim INVESCO Balanced and Maxim
Growth Index Portfolios ordinarily distribute dividends semi-annually.
o All of the Portfolios generally distribute capital gains, if any, in December.
Tax Consequences
The Portfolios are not currently separate taxable entities. It is possible a
Portfolio could lose this favorable tax treatment if it does not meet certain
requirements of the Internal Revenue Code of 1986, as amended. If it does not
meet those tax requirements and becomes a taxable entity, the Portfolio would be
required to pay taxes on income and capital gains. This would affect your
investment because your return would be reduced by the taxes paid by the
Portfolio.
Tax consequences of your investment in any one of the Portfolios depend on the
provisions of the variable contract through which you invest in the Fund or the
terms of your qualified retirement plan. For more information, please refer to
the applicable prospectus and/or disclosure documents for that contract.
Effect of Foreign Taxes. Dividends and interest received by the Portfolios on
foreign securities may be subject to withholding and other taxes imposed by
foreign governments. These taxes will generally reduce the amount of
distributions on foreign securities.
Annual and Semi-Annual Shareholder Reports
The fiscal year of the Fund ends on December 31 of each year. Twice a year
shareholders of each Fund will receive a report containing a summary of the
Fund's performance and other information.
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand each
Portfolio's financial history for the past five years, or, if shorter, the
period of each Portfolio's operations. Certain information reflects financial
results for a single Portfolio share. Total returns in the following tables
represent the rate that an investor would have earned (or lost) on an investment
in a Portfolio (assuming reinvestment of all dividends and distributions). The
information has been audited by Deloitte & Touche LLP, independent auditors,
whose reports, along with the Fund's financial statements, are included in the
Fund's Annual Report. A free copy of the Annual Report is available upon
request.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
<TABLE>
<S> <C>
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.0005 $ 1.0007 $ 1.0007 $ 1.0007 $ 1.0007
Income from Investment Operations
Net investment income 0.0471 0.0505 0.0512 0.0493 0.0555
Net realized loss (0.0002)
-------
Total Income From Investment Operations 0.0471 0.0503 0.0512 0.0493 0.0555
Less Distributions
From net investment income (0.0471) (0.0505) (0.0512) (0.0493) (0.0555)
Total Distributions (0.0471) (0.0505) (0.0512) (0.0493) (0.0555)
Net Asset Value, End of Period $ 1.0005 $ 1.0005 $ 1.0007 $ 1.0007 $ 1.0007
Total Return/Yield 4.81% 5.15% 5.24% 5.04% 5.62%
Net Assets, End of Period $ 722,697,255 $ 619,416,664 $ 453,155,210 $ 396,453,188 $ 277,257,289
Ratio of Expenses to Average Net Assets 0.46% 0.46% 0.46% 0.46% 0.46%
Ratio of Net Investment Income to
Average Net Assets 4.73% 5.05% 5.14% 4.99% 5.55%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM GROWTH INDEX PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 2.4276 $ 1.8507 $ 1.4852 $ 1.3459 $ 1.0120
Income from Investment Operations
Net investment income 0.0061 0.0070 0.0085 0.0114 0.0127
Net realized and unrealized gain 0.6347 0.6769 0.4241 0.2851 0.3432
Total Income From Investment Operations 0.6408 0.6839 0.4326 0.2965 0.3559
Less Distributions
From net investment income (0.0061) (0.0070) (0.0085) (0.0114) (0.0165)
From net realized gains (0.1989) (0.1000) (0.0586) (0.1458) (0.0055)
Total Distributions (0.2050) (0.1070) (0.0671) (0.1572) (0.0220)
Net Asset Value, End of Period $ 2.8634 $ 2.4276 $ 1.8507 $ 1.4852 $ 1.3459
Total Return 26.87% 37.28% 29.26% 22.10% 35.29%
Net Assets, End of Period $ 499,612,225 $ 297,170,229 $ 162,975,760 $ 83,743,210 $ 43,515,299
Ratio of Expenses to Average Net Assets 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of Net Investment Income to
Average Net Assets 0.26% 0.36% 0.54% 0.83% 1.15%
Portfolio Turnover Rate 54.24% 26.48% 21.52% 41.55% 17.90%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM T. ROWE PRICE EQUITY/INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.7804 $ 1.7602 $ 1.4492 $ 1.2633 $ 0.9805
Income from Investment Operations
Net investment income 0.0339 0.0370 0.0357 0.0299 0.0345
Net realized and unrealized gain 0.0242 0.1177 0.3783 0.2130 0.2892
Total Income From Investment Operations 0.0581 0.1547 0.4140 0.2429 0.3237
Less Distributions
From net investment income (0.0340) (0.0369) (0.0357) (0.0300) (0.0396)
From net realized gains (0.1491) (0.0976) (0.0673) (0.0270) (0.0013)
Total Distributions (0.1831) (0.1345) (0.1030) (0.0570) (0.0409)
Net Asset Value, End of Period $ 1.6554 $ 1.7804 $ 1.7602 $ 1.4492 $ 1.2633
Total Return 3.39% 8.93% 28.82% 19.39% 33.42%
Net Assets, End of Period $ 189,499,607 $ 209,702,724 $ 167,154,169 $ 69,535,903 $ 10,950,195
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 0.88% 0.88% 0.93% 1.20% 1.82%
- - After Reimbursement # 0.88% 0.88% 0.91% 0.95% 0.95%
Ratio of Net Investment Income to
Average Net Assets:
- - Before Reimbursement 1.84% 2.14% 2.46% 2.60% 2.59%
- - After Reimbursement # 1.84% 2.14% 2.48% 2.85% 3.46%
Portfolio Turnover Rate 44.02% 32.30% 25.35% 26.15% 14.00%
# Percentages are shown net of expenses reimbursed The Great-West Life Assurance
Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM INVESCO BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and 1997, and the period ended December 31, 1996 are as
follows:
Period Ended December 31,
1999 1998 1997 1996
(A)
Net Asset Value, Beginning of Period $ 1.4608 $ 1.2588 $ 1.0408 $ 1.0000
Income from Investment Operations
Net investment income 0.0271 0.0289 0.0187 0.0052
Net realized and unrealized gain 0.2086 0.2020 0.2518 0.0420
Total Income From Investment Operations 0.2357 0.2309 0.2705 0.0472
Less Distributions
From net investment income (0.0272) (0.0289) (0.0187) (0.0052)
From net realized gains (0.2535) (0.0338) (0.0012)
Total Distributions (0.2807) (0.0289) (0.0525) (0.0064)
Net Asset Value, End of Period $ 1.4158 $ 1.4608 $ 1.2588 $ 1.0408
Total Return 16.74% 18.42% 26.10% 4.60%
Net Assets, End of Period $ 168,657,892 $ 175,637,780 $ 127,072,586 $ 15,987,166
Ratio of Expenses to Average Net Assets 1.00% 1.00% 1.00% 1.00%*
Ratio of Net Investment Income to
Average Net Assets 1.94% 2.18% 2.77% 2.84%*
Portfolio Turnover Rate 119.39% 119.95% 150.57% 17.14%
</TABLE>
*Annualized
(A) The portfolio commenced operations on October 1, 1996.
<PAGE>
ADDITIONAL INFORMATION
The Statement of Additional Information ("SAI") contains more details about the
investment policies and techniques of the Portfolios. A current SAI is on file
with the SEC and is incorporated into this Prospectus by reference. This means
that the SAI is legally considered a part of this Prospectus even though it is
not physically contained within this Prospectus.
Additional information about the Portfolios' investments is available in the
Fund's annual and semi-annual reports to shareholders. In the Fund's annual
report, you will find a discussion of the market conditions and investment
strategies that significantly affected the Portfolios' performance during its
last fiscal year.
For a free copy of the SAI or annual or semi-annual reports or to request other
information or ask questions about a Fund, call 1-800-338-4015.
The SAI and the annual and semi-annual reports are available on the SEC's
Internet Web site (http://www.sec.gov). You can also obtain copies of this
information, upon paying a duplicating fee, by writing the Public Reference
Section of the SEC, Washington, D.C. 20549-6009, or by electronic request at the
following e-mail address: [email protected]. You can also review and copy
information about the Portfolios, including the SAI, at the SEC's Public
Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the
operation of the SEC's Public Reference Room.
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER, 811-7735.
This prospectus should be read
and retained for future reference.
