MAXIM SERIES FUND, INC.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Maxim Money Market Portfolio Maxim Templeton International Equity Portfolio
Maxim Bond Portfolio Maxim INVESCO ADR Portfolio
Maxim Loomis Sayles Corporate Bond Portfolio Maxim T. Rowe Price Equity/Income Portfolio
Maxim U.S. Government Securities Portfolio Maxim Founders Growth & Income Portfolio
(formerly, Maxim Founders Blue Chip Portfolio)
Maxim INVESCO Balanced Portfolio
Maxim Ariel MidCap Value Portfolio
Maxim T. Rowe Price MidCap Growth Portfolio Maxim Loomis Sayles Small-Cap Value Portfolio
Maxim Ariel Small-Cap Value Portfolio
Maxim Stock Index Portfolio Maxim INVESCO Small-Cap Growth Portfolio
Maxim Index 600 Portfolio
Maxim Value Index Portfolio Aggressive Profile I Portfolio
Maxim Growth Index Portfolio Moderately Aggressive Profile I Portfolio
Maxim Bond Index Portfolio (formerly, Maxim Moderate Profile I Portfolio
Investment Grade Corporate Bond Portfolio) Moderately Conservative Profile I Portfolio
Conservative Profile I Portfolio
</TABLE>
(the "Portfolios")
----------------
8515 East Orchard Road
Englewood, CO 80111
(800) 338 - 4015
This Prospectus describes twenty-four portfolios of Maxim Series Fund, Inc. (the
"Fund"). Sixteen are "Equity Portfolios," seven are "Debt Portfolios" (including
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. Several 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 directly.
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.
<PAGE>
CONTENTS
The Portfolios at a Glance .....................................................
Maxim Money Market Portfolio
Maxim Bond Portfolios
Maxim Small-Cap Portfolios
Maxim MidCap Portfolios
Maxim Foreign Equity Portfolios
Maxim Domestic Equity Portfolios
Maxim Balanced Portrfolio
Maxim Index Portfolios
Maxim Profile I Portfolios
Fees and Expenses...............................................................
Examples........................................................................
More Information About the Portfolios ..........................................
The Equity Portfolios
The Debt Portfolios
The Money Market Portfolio
The Balanced Portfolio
Other Investment Practices .....................................................
Management of the Portfolios....................................................
Important Information About Your Investment.....................................
Financial Highlights............................................................
<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
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:
<TABLE>
<S> <C>
7-Day Yield Effective Yield
Maxim Money Market Portfolio 5.33% 5.47%
</TABLE>
MAXIM BOND PORTFOLIOS
Maxim U.S. Government Securities Portfolio
The investment objective of this Portfolio is to:
o Seek the highest level of return consistent with preservation of capital and
substantial credit protection.
Principal investment strategies. This Portfolio will:
o Invest primarily in securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities.
o Focus on relative value of the security by analyzing the current and
expected level of interest rates, and current and historical asset yields
versus treasury yields.
o Invest in private mortgage pass-through securities and collateralized
mortgage obligations (CMOs). CMOs may be issued by private issuers and
collateralized by securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities.
o Invest in U.S. Treasury bills, notes or bonds or in certificates (which are
fully backed by the U.S. Government) representing individual interests in
pools of these types of U.S. Treasury securities.
The principal investment risks for this Portfolio include:
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.
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
<PAGE>
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
1990 9.70%
1991 14.34%
1992 8.94%
1993 9.35%
1994 -3.20%
1995 16.09%
1996 3.92%
1997 8.51%
1998 7.24%
1999 0.30%
During the periods shown in the chart for the Maxim U.S. Government Securities
Portfolio , the highest return for a quarter was 5.20% (quarter ending June,
1995) and the lowest return for a quarter was -2.70% (quarter ending March,
1994).
From July 29, 1987 to May 1, 1990, the U.S. Government Securities Portfolio's
name was the Government and High Quality Securities Portfolio. During this
period, the Portfolio's investment policies differed from the U.S. Government
Securities Portfolio's current policies.
The average annual total return for one year, five years, and ten years for the
period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
One Year Five Years Ten Years
Maxim U.S. Government
Securities Portfolio 0.30% 7.08% 7.37%
Lehman Aggregate Bond Index -0.82% 7.73% 7.70%
Lehman Intermediate Government/Mortgage
Index 1.59% 7.77% 7.64%
Merrill Lynch Mortgage Index 1.61% 7.99% 7.88%
</TABLE>
The Lehman Government/Mortgage Index is comprised of U.S. Government issued
securities and agency issued fixed-rate mortgage-backed pass-through securities,
excluding special programs. The Merrill Lynch Mortgage Index is comprised of
fixed-rate mortgage pass-through securities issued by FNMA, FHLMC, and GNMA. It
includes 30-year, 15-year mortgage pass-through securities as well as balloon
securities. The Lehman Aggregate Bond Index covers the U.S. investment grade
fixed rate bond market, including government and corporate securities, agency
mortgage pass-through securities, commercial mortgage-backed securities, and
asset-backed securities having a final maturity of greater than one year that
are traded on U.S. financial markets.
Maxim Bond Portfolio
The investment objective of this Portfolio is to:
o Seek maximum total return consistent with preservation of capital.
Principal investment strategies. This Portfolio will:
o Invest primarily in bonds issued by the U.S. Government and its agencies and
by domestic or foreign corporations.
o Select securities based on relative value, maturity, quality and sector.
o Invest in securities with various maturities but maintaining a weighted
average maturity of 2 to 10 years.
o Invest up to 40% of its total assets in foreign securities, with no more
than 20% in non-U.S. dollar denominated foreign debt. No more than 25% of
total assets may be invested in securities of issuers located in a single
country, (other than the U.S).
The principal investment risks for this Portfolio include:
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.
Foreign Risk
o Foreign 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 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 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
1990 8.21%
1991 14.70%
1992 6.24%
1993 8.56%
1994 -2.36%
1995 15.21%
1996 4.26%
1997 7.07%
1998 6.65%
1999 -0.27%
During the periods shown in the chart for the Maxim Bond Portfolio, the highest
return for a quarter was 7.20% (quarter ending December, 1991) and the lowest
return for a quarter was -2.16% (quarter ending March, 1994).
The average annual total return for one, five, and ten years for the period
ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
One Year Five Years Ten Years
Maxim Bond Portfolio -0.27% 6.47% 6.70%
Lehman Aggregate Bond Index -0.82% 7.73% 7.70%
Lehman Intermediate
Government/Corporate Bond Index 0.39% 7.10% 7.26%
Lehman Intermediate Corporate Bond Index 0.16% 7.77% 7.89%
</TABLE>
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 Lehman
Intermediate Corporate Bond Index is comprised of investment-grade or better,
dollar-denominated, publicly-issued corporate bonds.
The Lehman Aggregate Bond Index covers the U.S. investment grade fixed rate bond
market, including government and corporate securities, agency mortgage
pass-through securities, commercial mortgage-backed securities, and asset-backed
securities having a final maturity of greater than one year that are traded on
U.S. financial markets.
Maxim Loomis Sayles Corporate Bond Portfolio (Sub-Adviser: Loomis, Sayles &
Company, L.P.)
- ---------------------------------------------
The investment objective of this Portfolio is to:
o Seek high total investment return through a combination of current income and
capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest primarily in corporate debt securities of any maturity.
o Focus on good relative value based on the credit outlook of the issuer,
good structural fit within the objectives and constraints of the Portfolio,
and maximum total return potential.
o Invest up to 20% of its total assets in preferred stock.
o Invest up to 20% of its total assets in foreign securities; however,
securities of Canadian issuers are not subject to this 20% limitation.
o Invest up to 35% of its total assets in securities of below investment grade
quality ("high yield/high risk" or "junk" bonds).
The principal investment risks for this Portfolio include:
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.
o Junk bonds are regarded as predominately speculative with respect to the
issuer's continuing ability to meet principal and interest payments. As a
result, the total return and yield of a junk bond can be expected to
fluctuate more than the total return and yield of high quality bonds and
the potential loss is significantly greater.
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.
Preferred Stock Risk
o Preferred stocks are subject to interest rate risk and credit risk. The
value of these stocks will tend to fall in response to a general increase
in interest rates and rise in value in response to a general decline in
interest rates. In addition, the value of these stocks will vary in
response to changes in the credit rating of the issuing corporation.
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
1995 30.19%
1996 10.35%
1997 12.70%
1998 3.43%
1999 4.87%
During the periods shown in the chart for the Maxim Loomis Sayles Corporate Bond
Portfolio, the highest return for a quarter was 9.94% (quarter ending June,
1995) and the lowest return for a quarter was -5.01% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Loomis Sayles Corporate Bond
Portfolio 4.87% 11.93% 11.20%
Merrill Lynch Intermediate
Government/Corporate Index -2.05% 7.61% 7.47%
</TABLE>
The inception date for the Maxim Loomis Sayles Corporate Bond Portfolio was
November 1, 1994.
The Merrill Lynch Intermediate Government/Corporate Index is comprised of
Government issued bonds and investment-grade or better, dollar-denominated,
publicly-issued corporate bonds with 1-10 years remaining until maturity.
DEBT INDEX PORTFOLIO
Maxim Bond Index Portfolio (formerly, the Maxim Investment Grade Corporate Bond
Portfolio)
The investment objective for this Portfolio is to:
o Seek investment results that track the total return of the debt securities
that comprise the Lehman Aggregate Bond Index ("Lehman Index").
Principal Investment Strategies. The Portfolio will:
o Invest primarily in debt securities of the Lehman Index.
o Invest in a portfolio of securities using sampling techniques designed to
give the Portfolio the relevant comparable attributes of the Lehman Index.
This may be accomplished through a combination of debt securities ownership
and owning futures contracts on the Lehman Index and options on futures
contracts.
The principal investment risks for the Portfolio include:
Index Risk
o It is possible the Lehman 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
Lehman Index.
Tracking Error Risk
o Several factors will affect the Portfolio's ability to precisely track the
performance of the Lehman Index. For example, unlike the Lehman Index,
which is an unmanaged group of securities, the Portfolio has operating
expenses and those expenses will reduce the Portfolio's total return. In
addition, the Portfolio will own less than all the securities of the Lehman
Index, which also may cause a variance between the performance of the
Portfolio and the Lehman Index.
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 values rises. The longer a
bond's maturity, the greater the risk and the higher 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 obligations to pay principal and/or interest.
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 Fund to lose more money than if the Portfolio
had actually purchased the underlying securities. This is because
derivatives magnify gains and losses.
o In addition, derivatives can be illiquid and highly sensitive to changes in
their underlying security, interest rate or index, and as a result can be
highly volatile. A small investment in certain derivatives could have a
potentially large impact on the Portfolio's performance.
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 the
amount 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
1993 8.96%
1994 -3.15%
1995 16.71%
1996 3.14%
1997 6.85%
1998 7.08%
1999 -0.31%
During the periods shown in the chart of the Bond Index Portfolio, the highest
return for a quarter was 6.31% (quarter ending June, 1995) and the lowest return
for a quarter was -2.54% (quarter ending March, 1994).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31,1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Bond Index Portfolio -0.31% 6.54% 5.56%
Lehman Aggregate Bond Index -0.82% 7.73% 6.56%
</TABLE>
The inception date for the Portfolio was December 1, 1992. On July 26, 1999,
pursuant to a vote of the majority of shareholders, the Portfolio changed its
name and investment objective so that it now seeks investment results that track
the total return of the debt securities that comprise the Lehman Aggregate Bond
Index. Prior to the changes, the Portfolio's name was the Maxim Investment Grade
Corporate Bond Portfolio and it compared its performance to that of the Lehman
Intermediate Government/Corporate Index and Lehman Intermediate Corporate Index.
Consistent with its change in investment objective, the Portfolio now compares
its performance to that of the Lehman Aggregate Bond Index, the Portfolio's new
benchmark index.
The Lehman Aggregate Bond Index covers the U.S. investment grade fixed rate bond
market, including government and corporate securities, agency mortgage
pass-through securities, commercial mortgage-backed securities, and asset-backed
securities having a final maturity of greater than one year that are traded on
U.S. financial markets.
MAXIM SMALL-CAP PORTFOLIOS
Maxim Ariel Small-Cap Value Portfolio (Sub-Adviser: Ariel Capital Management,
Inc.)
- ---------------------------------------
The investment objective of this Portfolio is to:
o Seek long-term capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest primarily in small-cap common stocks.
o Emphasize small companies that are believed to be undervalued.
The Portfolio also currently observes the following operating policies:
o Actively seeking investment in companies that achieve excellence in both
financial return and environmental soundness, selecting issuers that take
positive steps toward preserving our environment and avoiding companies
with a poor environment record.
o Not investing in issuers primarily engaged in the manufacture of tobacco,
weapons systems, the production of nuclear energy, or the manufacture of
equipment to produce nuclear energy.
The principal investment risks for this Portfolio include:
Small Company Risk
o The stocks of small companies often involve more risk and volatility than
those of larger companies. Because small companies are often dependent on a
small number of products and have limited financial resources, they may be
severely affected by economic changes, business cycles and adverse market
conditions. In addition, there is generally less publicly available
information concerning small companies upon which to base an investment
decision.
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 can be more volatile than the market as
a whole and can perform differently than the value of the market as a
whole. This is particularly true of small companies.
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
1994 -2.78%
1995 15.51%
1996 17.94%
1997 27.86%
1998 8.28%
1999 -5.80%
During the periods shown in the chart for the Maxim Ariel Small-Cap Value
Portfolio, the highest return for a quarter was 20.41% (quarter ending December,
1998) and the lowest return for a quarter was -15.76% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Ariel Small-Cap
Value Portfolio -5.80% 12.18% 10.01%
Russell 2000 Index 21.26% 13.08% 12.20%
</TABLE>
The inception date for the Maxim Ariel Small-Cap Value Portfolio was December 1,
1993.
The Russell 2000 Index is a list compiled by the Frank Russell Company and is a
measure of the bottom two-thirds of the top 3000 market-capitalized, publicly
traded, domestic common stocks.
Maxim Loomis Sayles Small-Cap Value Portfolio (Sub-Adviser: Loomis, Sayles &
Company, L.P.)
- ---------------------------------------------
The investment objective of this Portfolio is to:
o Seek long-term capital growth.
Principal investment strategies. This Portfolio will:
o Invest primarily in small-cap companies within the Russell 2000 Index market
capitalization range ($178.2 million to $1.3 billion as of May 30, 1999).
o Seek to build a core small-cap portfolio of common stocks of solid growth
companies.
o Seek companies that have experienced significant business problems but
which are believed to have favorable prospects for recovery.
o Invest up to 35% of total assets in equity securities of companies with
market capitalizations in excess of the Russell 2000 Index market
capitalization range.
The principal investment risks for this Portfolio include:
Small Company Risk
o The stocks of small companies often involve more risk and volatility than
those of larger companies. Because small companies are often dependent on a
small number of products and have limited financial resources, they may be
severely affected by economic changes, business cycles and adverse market
conditions. In addition, there is generally less publicly available
information concerning small companies upon which to base an investment
decision. These risks may be more acute for companies that have experienced
significant business problems.
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 can be more volatile than the market as
a whole and can perform differently than the value of the market as a
whole. This is particularly true of small companies.
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
1995 29.96%
1996 30.09%
1997 24.50%
1998 -2.28%
1999 -0.43%
During the periods shown in the chart for the Maxim Loomis Sayles Small-Cap
Value Portfolio, the highest return for a quarter was 17.18% (quarter ending
December, 1998) and the lowest return for a quarter was -18.76% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since
One Year Five Years Inception
Maxim Loomis Sayles Small-Cap Value
Portfolio -0.43% 15.42% 14.33%
Russell 2000 Index 21.26% 13.08% 14.12%
</TABLE>
The inception date for the Maxim Loomis Small-Cap Value Portfolio was November
1, 1994.
The Russell 2000 Index is a list compiled by the Frank Russell Company and is a
measure of the bottom two-thirds of the top 3000 market-capitalized, publicly
traded, domestic common stocks.
Maxim INVESCO Small-Cap Growth Portfolio (Sub-Adviser: INVESCO Funds Group,
Inc.)
- ----------------------------------------
The investment objective of this Portfolio is to:
o Seek long-term capital growth.
Principal investment strategies. This Portfolio will:
o Invest primarily in a diversified group of equity securities of emerging
growth companies with market capitalizations of $2 billion or less at the
time of purchase.
o Invest up to 35% of total assets in equity securities of companies with market
capitalizations in excess of $2 billion. o Identify companies believed to have
favorable opportunities for capital appreciation within their industry grouping
and
invest in these companies when they:
o are determined to be in the developing stages of their life cycle, and
o have demonstrated, or are expected to achieve, long-term earnings growth.
o Invest up to 25% of its 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:
Small Company Risk
o The stocks of small companies often involve more risk and volatility than
those of larger companies. Because small companies are often dependent on a
small number of products and have limited financial resources, they may be
severely affected by economic changes, business cycles and adverse market
conditions. In addition, there is generally less publicly available
information concerning small companies upon which to base an investment
decision.
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 can be more volatile than the market as
a whole and can perform differently than the value of the market as a
whole. This is particularly true of small companies.
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.
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
1995 31.79%
1996 26.73%
1997 18.70%
1998 17.62%
1999 80.78%
During the periods shown in the chart for the Maxim INVESCO Small-Cap Growth
Portfolio, the highest return for a quarter was 50.98% (quarter ending December,
1999 ) and the lowest return for a quarter was -17.43% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim INVESCO Small-Cap
Growth Portfolio 80.78% 33.34% 32.32%
Russell 2000 Index 21.26% 13.08% 14.12%
</TABLE>
The inception date for the Maxim INVESCO Small-Cap Growth Portfolio was November
1, 1994.
The Russell 2000 Index is list compiled by the Frank Russell Company and is a
measure of the bottom two-thirds of the top 3000 market-capitalized, publicly
traded, domestic common stocks.
MAXIM MIDCAP PORTFOLIOS
Maxim T. Rowe Price MidCap Growth Portfolio (Sub-Adviser: T. Rowe Price
Associates, Inc.)
- ---------------------------------------------
The investment objective of this Portfolio is to:
o Seek long-term capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest in mid-cap stocks with potential for above-average earnings growth.
o Emphasize companies whose earnings are expected to grow at a faster rate
than the average mid-cap company. In this regard, the Portfolio will focus
on issuers whose market capitalization fall within the range of companies
included in the Standard & Poor's ("S&P") 400 MidCap Index - generally
between $207.3 million and $13.8 billion.
o Invest in companies that:
o offer proven products or services;
o have a historical record of above-average earnings growth; o demonstrate
potential for sustained earnings growth; o operate in industries experiencing
increasing demand; or o are believed to be undervalued in the market place.
o Invest up to 25% of its total assets in foreign securities.
The principal investment risks for this Portfolio include:
Mid-Cap Company Risk
o The stocks of medium sized companies often involve more risk and volatility
than those of larger companies.
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
1998 22.23%
1999 24.60%
During the periods shown in the chart for the Maxim T. Rowe Price MidCap Growth
Portfolio, the highest return for a quarter was 26.91% (quarter ending December,
1998) and the lowest return for a quarter was -17.21% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year
Maxim T. Rowe Price
MidCap Growth Portfolio 24.60% 23.31%
S&P 400 MidCap Index 14.72% 20.60%
</TABLE>
The inception date for the Maxim T. Rowe Price MidCap Growth Portfolio was July
1, 1997.
The S&P 400 MidCap Index is comprised of 400 stocks representing the middle tier
of stock market capitalization companies compiled by the Standard & Poor's
Corporation of companies having a market capitalization averaging $2.3 billion.
Maxim Ariel MidCap Value Portfolio (Sub-Adviser: Ariel Capital Management, Inc.)
The investment objective of this Portfolio is to:
o Seek long-term capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest primarily in equity securities of mid-cap companies.
o Emphasize issuers that are believed to be undervalued but demonstrate a
strong potential for growth. In this connection the Portfolio will focus on
issuers with market capitalization between approximately $200 million and
$5 billion.
The Portfolio also currently observes the following operating policies:
o Actively seeking investment in companies that achieve excellence in both
financial return and environmental soundness, selecting issuers that take
positive steps toward preserving our environment and avoiding companies
with a poor environment record.
o Not investing in issuers primarily engaged in the manufacture of tobacco,
weapons systems, the production of nuclear energy, or the manufacture of
equipment to produce nuclear energy.
The principal investment risks for this Portfolio include:
Mid-Cap Company Risk
o The stocks of medium sized companies often involve more risk and volatility
than those of larger companies.
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.
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
1995 26.50%
1996 5.96%
1997 12.95%
1998 33.77%
1999 0.26%
During the periods shown in the chart for the Maxim Ariel MidCap Value
Portfolio, the highest return for a quarter was 34.61% (quarter ending December,
1998) and the lowest return for a quarter was -15.01% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since
One Year Five Years Inception
Maxim Ariel MidCap Value Portfolio 0.26% 15.22% 14.48%
Russell MidCap Index 18.23% 21.86% 17.50%
</TABLE>
The inception date for the Maxim Ariel MidCap Value Portfolio was January 3,
1994.
The Russell MidCap Index is a list of the bottom 800 companies of the top 1000
from the Russell 1000 Index, a list compiled by the Frank Russell Company of the
top 1000 U.S. companies by market capitalization. The bottom 800 companies
represent approximately 35% of the total market capitalization value of the
Russell 1000.
MAXIM FOREIGN EQUITY PORTFOLIOS
Maxim Templeton International Equity Portfolio (Sub-Adviser: Templeton
Investment Counsel, Inc.)
The investment objective of this Portfolio is to:
o Seek long-term capital growth.
Principal investment strategies. This Portfolio will:
o Invest primarily in equity securities of companies located outside the U.S.,
including those in emerging markets.
o Focus on the market price of a company's securities relative to the
company's potential long-term earnings, asset value and cash flow
potential. The company's historical value measures including price/earnings
ratio, profit margins and liquidation value will also be considered, but
are not limiting factors.
The principal investment risks for this Portfolio include:
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.
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.
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
1993 26.50%
1994 6.06%
1995 8.93%
1996 19.59%
1997 1.99%
1998 -5.00%
1999 29.91%
During the periods shown in the chart for the Maxim Templeton International
Equity Portfolio, the highest return for a quarter was 16.13% (quarter ending
December, 1999) and the lowest return for a quarter was -22.66% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Templeton International Equity
Portfolio 29.91% 10.39% 9.73%
MSCI EAFE Index 27.30% 13.20% 13.40%
</TABLE>
The inception date for the Maxim Templeton International Equity Portfolio was
December 1, 1993.
The Morgan Stanley Capital International Europe, Australia and Far East ("MSCI
EAFE") Index is comprised of approximately 1600 separate equity issues listed on
exchanges in twenty-two different countries. The index is designed to represent
the performance of the international equity market generally.
Maxim INVESCO ADR Portfolio (Sub-Adviser: INVESCO Capital Management, Inc.)
The investment objective of this Portfolio is to:
o Seek high total return through capital appreciation and current income, while
reducing risk through diversification.
Principal investment strategies. This Portfolio will:
o Invest primarily in foreign securities that are issued in the form of
American Depository Receipts ("ADRs") or foreign stocks that are registered
with the Securities and Exchange Commission ("SEC") and traded in the U.S.
o Select stocks in the Portfolio from approximately 2,200 large and medium-sized
capitalization foreign companies.
o Analyze potential investments through computer analysis which compares current
stock price to measures such as:
o book value,
o historical return on equity,
o company's ability to reinvest capital,
o dividends, and
o dividend growth.
The principal investment risks for this Portfolio include:
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.
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.
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
1995 15.48%
1996 21.17%
1997 12.08%
1998 10.64%
1999 22.67%
During the periods shown in the chart for the Maxim INVESCO ADR Portfolio, the
highest return for a quarter was 21.53% (quarter ending December, 1999) and the
lowest return for a quarter was -16.88% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim INVESCO ADR Portfolio 22.67% 16.31% 15.48%
MSCI EAFE Index 27.30% 13.20% 11.77%
</TABLE>
The inception date for the Maxim INVESCO ADR Portfolio was November 1, 1994.
The MSCI EAFE Index is comprised of approximately 1600 separate equity issues
listed on exchanges in twenty-two different countries. The index is designed to
represent the performance of the international equity market generally.
MAXIM DOMESTIC EQUITY PORTFOLIOS
Maxim Founders Growth & Income Portfolio (Sub-Adviser: Founders Asset Management
LLC) (formerly, the Founders Blue Chip Portfolio)
The investment objective of this Portfolio is to:
o Seek long-term growth of capital and income.
Principal investment strategies. This Portfolio will:
o Invest primarily in common stocks of large, well-established, stable and
mature companies, commonly known as "Blue Chip" companies.
o Invest in "Blue Chip" stocks that:
o are included in a widely recognized index of stock market performance, such as
the Dow Jones Industrial Average or the S&P 500 Index
o generally pay regular dividends.
o Invest up to 30% of its total assets in foreign securities; however, the
Portfolio may invest without limitation in American Depository Receipts
("ADRs").
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.
Sector Risk
o Securities of companies within specific sectors of the economy can perform
differently than the overall market. This may be due to changes in such
things as the regulatory or competitive environment or to changes in
investor perceptions regarding a section. Because the Portfolio may
allocate relatively more assets to certain industry sectors than others,
the Portfolio's performance may be more susceptible to any developments
which affect those sections emphasized by the Portfolio.
Foreign Risk
o Foreign 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.
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
1998 17.85%
1999 15.04%
During the periods shown in the chart for the Maxim Founders Growth & Income
Portfolio, the highest return for a quarter was 17.35% (quarter ending December,
1999) and the lowest return for a quarter was -6.08% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since
One Year Inception
Maxim Founders Growth & Income Portfolio 15.04% 14.36%
S&P 500 Index 21.04% 24.21%
Lipper Growth & Income Index 11.86% 37.98%
</TABLE>
The inception date for the Maxim Founders Growth & Income Portfolio was July 1,
1997.
The S&P 500 Index Portfolio is comprised of stocks 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 Lipper Growth & Income Index tracks the average return
of a group of equity fund portfolios having a primary investment objective of
growth of capital, with a secondary objective of a steady stream of income. The
Lipper Growth & Income Index reflects the expenses of managing the mutual funds
included in the Index.
Maxim T. Rowe Price Equity/Income Portfolio (Sub-Adviser: T. Rowe Price
Associates, Inc.)
- -------------------------------------------
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
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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
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 BALANCED PORTFOLIO
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 INDEX PORTFOLIOS
The investment objective for each of the Index Portfolios is to:
o Each Index Portfolio seeks investment results that track the total return
of the common stocks that comprise its benchmark index.
Principal investment strategies. Each Index Fund will:
o Invest at least 80% of its total assets in common stocks of the following
applicable Benchmark Indexes:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
PORTFOLIO BENCHMARK INDEX
Maxim Stock Index Portfolio Standard & Poor's (S&P) 500 Composite Stock Price Index
and S&P 400 MidCap Index, weighted according to their pro rata share of the
market
Maxim Index 600 Portfolio S&P SmallCap 600 Stock Index
Maxim Growth Index Portfolio S&P/BARRA Growth Index
Maxim Value Index Portfolio S&P/BARRA Value Index
</TABLE>
S&P and BARRA are not sponsors of, or in any other way endorsed, sold or
promoted or affiliated with, the Equity Index Portfolios or Maxim Series Fund.
o Attempt to reproduce the returns of the applicable 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 all of the 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 an
Index 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 a Portfolio's ability to track precisely the
performance of its Benchmark Index. For example, unlike Benchmark Indexes,
which are merely unmanaged groups of securities, each Portfolio has
operating expenses and those expenses will reduce the Portfolio's total
return. In addition, a Portfolio may own less than all the securities of a
Benchmark Index, which also may cause a variance between the performance of
the Portfolio and its 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.
<PAGE>
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 Fund 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 Fund to lose more money than if the Fund 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 any of the Index Portfolios, they could be worth
less than what you paid for them.
The Index 600 Portfolio also has the following additional principal investment
risk:
Small-Company Risk
o The Index 600 Portfolio invests in the stocks of small companies. The
stocks of small companies often involve more risk and volatility than those
of larger companies. Because small companies are often dependent on a small
number of products and have limited financial resources, they may be
severely affected by economic changes, business cycles and adverse market
conditions. In addition, there is generally less publicly available
information concerning small companies upon which to base an investment
decision.
The Maxim Growth Index Portfolio has the following additional principal
investment risk:
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 charts and tables below provide an indication of the risk of investment
in the Index Portfolios. The bar charts show the Portfolios' performance in each
full calendar year since inception, or, in the case of the Stock Index
Portfolio, for the last ten full calendar years. The table shows how each of the
Index Portfolios' 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
each Index 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
Maxim Stock Index Portfolio
1990 -0.58%
1991 23.33%
1992 5.87%
1993 9.84%
1994 0.14%
1995 35.60%
1996 21.81%
1997 32.20%
1998 26.79%
1999 19.73%
During the periods shown in the chart for the Maxim Stock Index Portfolio, the
highest return for a quarter was 21.71% (quarter ending December, 1998) and the
lowest return for a quarter was -10.50% (quarter ending September, 1998).
From September 24, 1984 to December 1, 1992, the Stock Index Portfolio's name
was the Growth Portfolio. During this period, the Portfolio's investment
policies differed from the Stock Index Portfolio's current policies.
The average annual total return for one year, five years and ten years for the
period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
One Year Five Years Ten Years
Stock Index Portfolio 19.73% 27.08% 17.20%
S&P 500 Index 21.04% 28.56% 18.21%
S&P 400 MidCap Index 14.72% 23.05% 17.32%
</TABLE>
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 the 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 S&P 400 MidCap Index is comprised
of 400 stocks representing the middle tier of stock market capitalization
companies compiled by the Standard & Poor's Corporation of companies having a
market capitalization averaging $2.3 billion.
Maxim Index 600 Portfolio
1994 -4.69%
1995 26.24%
1996 15.30%
1997 21.00%
1998 -1.58%
1999 11.85%
During the periods shown in the chart for the Maxim Index 600 Portfolio, the
highest return for a quarter was 17.29% (quarter ending December, 1998) and the
lowest return for a quarter was -20.74% (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:
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Index 600 Portfolio 11.85% 14.16% 10.84%
S&P 600 Index 12.40% 17.04% 12.50%
</TABLE>
The inception date for the Maxim Index 600 Portfolio was December 1, 1993.
The stocks which make up the S&P 600 trade on the New York Stock Exchange,
American Stock Exchange, or NASDAQ quotation system. The S&P 600 is designed to
monitor the performance of publicly traded common stocks of the small company
sector of the U.S. equities market.
Maxim Value Index Portfolio
1994 -2.49%
1995 36.80%
1996 20.63%
1997 34.08%
1998 14.48%
1999 11.39%
During the periods shown in the chart for the Maxim Value Index Portfolio, the
highest return for a quarter was 16.39% (quarter ending December, 1998) and the
lowest return for a quarter was -11.89% (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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Value Index Portfolio 11.39% 23.05% 18.36%
S&P/BARRA Value Index 12.72% 22.94% 15.66%
</TABLE>
The inception date for the Maxim Value 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 Value
Index. Prior to the change in objective, the Portfolio compared its performance
to that of the Russell 1000 Value Index. Consistent with its change in
investment objective, the Portfolio now compares its performance to that of the
S&P/BARRA Value Index, the Portfolio's new benchmark index.
The S&P/BARRA Value Index (the "Value Index") is a widely recognized, unmanaged
index that contains the half of the market value of the S&P 500. The Value Index
is comprised of the stocks representing half of the total market value of the
S&P 500 with the lowest price-to-book value ratios.
Maxim Growth Index Portfolio
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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
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.
MAXIM PROFILE I PORTFOLIOS
There are five separate Maxim Profile I Portfolios (collectively, the "Profile
Portfolios"). Each Profile I Portfolio provides an asset allocation program
designed to meet certain investment goals based on an investor's risk tolerance,
investment horizon and personal objectives. Each Profile I Portfolio pursues its
investment objective by investing exclusively in other mutual funds (the
"Underlying Portfolios"), including mutual funds that are not affiliated with
Maxim Series Fund.
The investment objective for each Profile I Portfolio is to:
Aggressive Profile I
o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios that emphasize equity investments.
Moderately Aggressive Profile I
o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios that emphasize equity investments, and to a lesser
degree, in Underlying Portfolios that emphasize fixed income investments.
Moderate Profile I
o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios with a relatively equal emphasis on equity and fixed
income investments.
Moderately Conservative Profile I
o Seek capital appreciation primarily through investments in Underlying
Portfolios that emphasize fixed income investments, and to a lesser degree,
in Underlying Portfolios that emphasize equity investments.
Conservative Profile I
o Seek capital preservation primarily through investments in Underlying
Portfolios that emphasize fixed income investments.
The principal investment strategies for each Profile I Portfolio are to:
o Invest in Underlying Portfolios according to an asset allocation program
designed to meet an investor's risk tolerance, investment time horizons and
personal objectives.
Following is an illustration of each Profile I Portfolio according to its
emphasis on income, growth of capital and risk of principal:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Profile I Portfolio Income Growth of Capital Risk of Principal
- ------------------- --------- ----------------- -----------------
Aggressive Profile Low High High
Moderately Aggressive Profile Low High to Medium High
Moderate Profile Medium Medium to High Medium
Moderately Conservative Profile Medium to High Low to Medium Medium
Conservative Profile High Low Low
</TABLE>
o Maintain different allocations of equity and fixed income Underlying
Portfolios with varying degrees of potential investment risk and reward.
o Select asset allocations and Underlying Portfolios to provide investors
with five diversified, distinct options that meet a wide array of investor
needs.
o Automatically rebalance each Profile I Portfolio's holdings of Underlying
Portfolios quarterly to maintain the appropriate asset allocation as well
as the appropriate selection of Underlying Portfolios. Rebalancing occurs
on the 20th of February, May, August and November (unless that day is not a
business day in which case rebalancing will be effected on the next
business day after the 20th). Rebalancing involves selling shares of one
Underlying Portfolio and purchasing shares of another Underlying Portfolio.
The following chart describes the asset allocation ranges for each Profile I
Portfolio:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
======= ======================== ================= ================ ============= =============== ===============
Asset Class Conservative Moderately Moderate Moderately Aggressive
Conservative Aggressive
------------------------ ----------------- ---------------- ------------- --------------- ---------------
E International 0-10% 5-25% 5-25% 10-30% 15-35%
Q
------------------------ ----------------- ---------------- ------------- --------------- ---------------
U Small-Cap 0-10% 0-10% 0-20% 0-20% 10-30%
I
------------------------ ----------------- ---------------- ------------- --------------- ---------------
T MidCap 0-10% 0-20% 5-25% 10-30% 20-40%
------------------------ ----------------- ---------------- ------------- --------------- ---------------
Y Large-Cap 15-35% 15-35% 20-40% 25-45% 15-35%
- -------
------------------------ ----------------- ---------------- ------------- --------------- ---------------
D Bond 30-50% 20-40% 5-25% 5-25% 0-10%
E
------------------------ ----------------- ---------------- ------------- --------------- ---------------
B Short-Term Bond 25-45% 10-30% 5-25% 0-10% 0-10%
T
======= ======================== ================= ================ ============= =============== ===============
</TABLE>
GW Capital Management, the investment adviser, uses a proprietary investment
process for selecting the Underlying Portfolios in which the Profile I
Portfolios invest. In accordance with its investment process, GW Capital
Management may add new Underlying Portfolios or replace existing Underlying
Portfolios. Changes in Underlying Portfolios, if deemed necessary by GW Capital
Management, will only be made on a rebalancing date. Before each rebalancing
date, GW Capital Management reviews the current Underlying Portfolios to
determine if they continue to be appropriate in light of the objectives of the
Profile I Portfolios and researches and analyzes a myriad of mutual funds within
each asset category to determine whether they would be suitable investments for
the Profile I Portfolios. GW Capital Management examines various factors
relating to existing and potential Underlying Portfolios including performance
records over various time periods, Morningstar ratings, fees and expenses, asset
size and managerial style.
Each Profile I Portfolio may invest 0% to 100% of its assets in Underlying
Portfolios that are advised by GW Capital Management.
In order to give you a better understanding of the types of Underlying
Portfolios that fall within a particular asset category, the table below lists
some Underlying Portfolios, divided by asset category, in which the Profile I
Portfolios may invest. While the Profile I Portfolios may invest in these
Underlying Portfolios, the table is not intended to be a comprehensive listing
of all Underlying Portfolios available for investment and is included only as an
example. The Underlying Portfolios listed in the table are advised by GW Capital
Management. The Profile I Portfolios may also invest in Underlying Portfolios
that are not advised by GW Capital Management.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Short-Term Bond Bond
oMaxim Short-Term Maturity Bond Portfolio oMaxim Bond Index Portfolio
oMaxim Loomis Sayles Corporate Bond Portfolio
oMaxim U.S. Government Securities Portfolio
oMaxim U.S. Government Mortgage Securities Portfolio
oMaxim Global Bond Portfolio
International Equity Mid-Cap Equity
oMaxim Templeton International Equity Portfolio oMaxim Ariel MidCap Value Portfolio
oMaxim INVESCO ADR Portfolio oMaxim Index 400 Portfolio
oMaxim Index European Portfolio oMaxim T. Rowe Price MidCap Growth Portfolio
oMaxim Index Pacific Portfolio
Large-Cap Equity Small-Cap Equity
oMaxim Founders Growth & Income Portfolio oMaxim Ariel Small Cap Value Portfolio
(formerly the Maxim Founders Blue Chip Portfolio) oMaxim Index 600 Portfolio
oMaxim Value Index Portfolio oMaxim Loomis Sayles Small-Cap Value Portfolio
oMaxim Stock Index Portfolio oMaxim INVESCO Small-Cap Growth Portfolio
oMaxim Growth Index Portfolio oMaxim T. Rowe Price Equity/Income Portfolio
</TABLE>
The principal investment risks for the Profile Portfolios include:
Risks Associated with Underlying Portfolios
o Since each Profile I Portfolio invests directly in the Underlying
Portfolios, all risks associated with the eligible Underlying Portfolios
apply to the Profile Portfolios which invest in them.
o Changes in the net asset values of each Underlying Portfolio affect the net
asset values of the Profile Portfolios invested in them. As a result, over
the long-term the Profile Portfolios' ability to meet their investment
objective will depend on the ability of the Underlying Portfolios to meet
their own investment objectives.
o For the Aggressive, Moderately Aggressive and Moderate Profile Portfolios,
the primary risks are the same as those associated with equity securities.
Secondary risks are the same as those associated with debt securities.
o For the Moderately Conservative and Conservative Profile Portfolios, the
primary risks are the same as those associated with debt securities.
Secondary risks are the same as those associated with equity 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.
In addition, investors should be aware that in addition to fees directly
associated with a Profile Portfolio, they will also indirectly bear the fees of
the Underlying Portfolios.
Portfolio Performance Data for the Profile I Portfolios
The information below provides some indication of the risk of investment in the
Profile I Portfolios by comparing the Portfolios' performance to a broad based
securities market index. The bar chart shows each Profile I Portfolio's
performance in each full calendar year since inception. The table shows how each
Profile I Portfolio's average annual total return compared to 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
each Profile I 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.
Each Profile I Portfolio had previously compared its return to the Lipper
Balanced Index. Each Profile I Portfolio now compares its return to the Wilshire
5000 Index plus at least one other index such as the Lehman Aggregate Bond Index
or the MSI EAFE Index. The new securities market indexes better represent the
market sectors (and the types of securities) in which the Profile I Portfolios
may invest.
Year-by-Year
Aggressive Profile I Portfolio
1998 14.84%
1999 21.83%
During the periods shown in the chart for the Aggressive Profile I Portfolio,
the highest return for a quarter was 21.85% (quarter ending December, 1998) and
the lowest return for a quarter was -15.87% (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 Inception
One Year
Maxim Aggressive Profile I Portfolio 21.83% 17.10%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Aggressive Profile I Portfolio was September 9,
1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization. The Morgan Stanley Capital International Europe, Australia and
Far East ("MSCI EAFE") Index is comprised of approximately 1600 separate equity
issues listed on exchanges in twenty-two different countries. The index is
designed to represent the performance of the international equity market
generally. 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.
Moderately Aggressive Profile I Portfolio
1998 12.54%
1999 22.05%
During the periods shown in the chart for the Moderately Aggressive I Profile
Portfolio, the highest return for a quarter was 17.35% (quarter ending December,
1998) and the lowest return for a quarter was -13.70% (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 Inception
One Year
Maxim Moderately Aggressive Profile I
Portfolio 22.05% 16.35%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Moderately Aggressive Profile I Portfolio was
September 9, 1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization. The Morgan Stanley Capital International Europe, Australia and
Far East ("MSCI EAFE") Index is comprised of approximately 1600 separate equity
issues listed on exchanges in twenty-two different countries. The index is
designed to represent the performance of the international equity market
generally. The Lehman Aggregate Bond Index covers the U.S. investment grade
fixed rate bond market, including government and corporate securities, agency
mortgage pass-through securities, commercial mortgage-backed securities and
asset-backed securities having a final maturity of greater than one year that
are traded on U.S. financial markets. 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.
Moderate Profile I Portfolio
1998 11.41%
1999 16.43%
During the periods shown in the chart for the Moderate Profile I Portfolio, the
highest return for a quarter was 13.87% (quarter ending December, 1998) and the
lowest return for a quarter was -10.76% (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 Inception
One Year
Maxim Moderate Profile I Portfolio 16.43% 13.03%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Moderate Profile I Portfolio was September 9,
1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization. The Morgan Stanley Capital International Europe, Australia and
Far East ("MSCI EAFE") Index is comprised of approximately 1600 separate equity
issues listed on exchanges in twenty-two different countries. The index is
designed to represent the performance of the international equity market
generally. The Lehman Aggregate Bond Index covers the U.S. investment grade
fixed rate bond market, including government and corporate securities, agency
mortgage pass-through securities, commercial mortgage-backed securities, and
asset-backed securities having a final maturity of greater than one year that
are traded on U.S. financial markets. 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.
Moderately Conservative Profile I Portfolio
1998 9.75%
1999 8.34%
During the periods shown in the chart for the Moderately Conservative Profile I
Portfolio, the highest return for a quarter was 9.13% (quarter ending December,
1998) and the lowest return for a quarter was -6.86% (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 Inception
One Year
Maxim Moderately Conservative Profile I
Portfolio 8.34% 8.75%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Moderately Conservative Profile I Portfolio was
September 9, 1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization. The Morgan Stanley Capital International Europe, Australia and
Far East ("MSCI EAFE") Index is comprised of approximately 1600 separate equity
issues listed on exchanges in twenty-two different countries. The index is
designed to represent the performance of the international equity market
generally. The Lehman Aggregate Bond Index covers the U.S. investment grade
fixed rate bond market, including government and corporate securities, agency
mortgage pass-through securities, commercial mortgage-backed securities, and
asset-backed securities having a final maturity of greater than one year that
are traded on U.S. financial markets. 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.
Conservative Profile I Portfolio
1998 8.25%
1999 4.86%
During the periods shown in the chart for the Conservative Profile I Portfolio,
the highest return for a quarter was 4.50% (quarter ending December, 1998) and
the lowest return for a quarter was -1.76% (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 Inception
One Year
Maxim Conservative Profile I Portfolio
4.86% 7.19%
Wilshire 5000 Index 22.05% 21.96%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Conservative Profile I Portfolio was September
9, 1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization.. The Lehman Aggregate Bond Index covers the U.S. investment
grade fixed rate bond market, including government and corporate securities,
agency mortgage pass-through securities, commercial mortgage-backed securities,
and asset-backed securities having a final maturity of greater than one year
that are traded on U.S. financial markets. 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.
<PAGE>
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)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Sales Load Imposed on Purchases.................................................NONE
Sales Load Imposed on Reinvested Dividends......................................NONE
Deferred Sales Load.............................................................NONE
Redemption Fees.................................................................NONE
Exchange Fees...................................................................NONE
ANNUAL PORTFOLIO OPERATING EXPENSES (expenses that are deducted from Portfolio assets)
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
Maxim Maxim Maxim U.S. Maxim Loomis Maxim
Money Bond Gov't. Sayles Templeton
Market Securities Corporate Bond International
Equity
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
Management Fees 0.46% 0.60% 0.60% 0.90% 1.00%
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
Distribution (12b-1) Fees NONE NONE NONE NONE NONE
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
Other Expenses 0.00% 0.00% 0.00% 0.00% 0.23%
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
Total Annual Portfolio
Operating Expenses 0.46% 0.60% 0.60% 0.90% 1.23%
- ------------------------------ -------------- ------------ ------------- --------------- -----------------
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
Maxim INVESCO Maxim Maxim Maxim T. Rowe Maxim T.
ADR Founders INVESCO Price Equity/ Rowe Price
Growth & Balanced Income MidCap
Income Growth
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
Management Fees 1.00% 1.00% 1.00% 0.80% 1.00%
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
Distribution (12b-1) Fees NONE NONE NONE NONE NONE
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
Other Expenses 0.14% 0.11% 0.00% 0.08% 0.05%
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
Total Annual Portfolio
Operating Expenses 1.14% 1.11% 1.00% 0.88% 1.05%
- ------------------------------ --------------- -------------- ------------- ---------------- -------------
- ------------------------------ ------------------- ----------------- ----------------- -------------------
Maxim Maxim Maxim Value Maxim Ariel
Bond Growth Index Index MidCap Value
Index++
- ------------------------------ ------------------- ----------------- ----------------- -------------------
- ------------------------------ ------------------- ----------------- ----------------- -------------------
Management Fees 0.50% 0.60% 0.60% 0.95%
- ------------------------------ ------------------- ----------------- ----------------- -------------------
- ------------------------------ ------------------- ----------------- ----------------- -------------------
Distribution (12b-1) Fees NONE NONE NONE NONE
- ------------------------------ ------------------- ----------------- ----------------- -------------------
- ------------------------------ ------------------- ----------------- ----------------- -------------------
Other Expenses 0.00% 0.00% 0.00% 0.09%
- ------------------------------ ------------------- ----------------- ----------------- -------------------
- ------------------------------ ------------------- ----------------- ----------------- -------------------
Total Annual Portfolio
Operating Expenses 0.50% 0.60% 0.60% 1.04%
- ------------------------------ ------------------- ----------------- ----------------- -------------------
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
Maxim Ariel Maxim Maxim Loomis Maxim Maxim
Small-Cap INVESCO Sayles Stock Index
Value Small-Cap Small-Cap Value Index 600
Growth
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
Management Fees 1.00% 0.95% 1.00% 0.60% 0.60%
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
Distribution (12b-1) Fees NONE NONE NONE NONE NONE
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
Other Expenses 0.23% 0.12% 0.14% 0.00% 0.00%
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
Total Annual Portfolio
Operating Expenses 1.23% 1.07% 1.14% 0.60% 0.60%
- ------------------------------ --------------- --------------- ----------------- ------------ ------------
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
Maxim Maxim Maxim Maxim Maxim
Aggressive Moderately Moderate Moderately Conservative
Profile I Aggressive Profile I Conservative Profile I
Profile I Profile I
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
Management Fees 0.25% 0.25% 0.25% 0.25% 0.25%
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
Distribution (12b-1) Fees NONE NONE NONE NONE NONE
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
Other Expenses 0.00% 0.00% 0.00% 0.00% 0.00%
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
Total Annual Portfolio
Operating Expenses 0.25%** 0.25%** 0.25%** 0.25%** 0.25%**
- ------------------------------ -------------- -------------- ------------ ---------------- ---------------
</TABLE>
++ The Management Fee for the Bond Index Portfolio was changed from 0.60% to
0.50% pursuant to a shareholder vote effective July 26, 1999.
** Each Profile I Portfolio will invest in shares of Underlying Portfolios.
Therefore, each Profile I Portfolio will, in addition to its own expenses such
as management fees, bear its pro rata share of the fees and expenses incurred by
the Underlying Portfolios and the investment return of each Profile I Portfolio
will be reduced by the Underlying Portfolio's expenses. As of the date of this
prospectus, the range of expenses expected to be incurred in connection with
each Profile I Portfolio's investments in Underlying Portfolios is: Maxim
Aggressive Profile I - 1.07% to 1.43%; Maxim Moderately Aggressive Profile I -
1.00% to 1.36%; Maxim Moderate Profile I - 0.97% to 1.31%; Maxim Moderately
Conservative Profile I - 0.91% to 1.27%; Maxim Conservative Profile I - 0.87% to
1.21%. This information is provided as a range since the average assets of each
Profile I Portfolio invested in Underlying Portfolios will fluctuate.
<PAGE>
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.
<TABLE>
<S> <C> <C> <C> <C>
Portfolio 1 Year 3 Years 5 Years 10 Years
Maxim Money Market $47 $149 $261 $593
Maxim Bond $62 $194 $340 $774
Maxim Bond Index* $51 $162 $283 $645
Maxim U.S. Government Securities $62 $194 $340 $774
Maxim Loomis Sayles Corporate Bond $92 $291 $510 $1,160
Maxim Templeton International Equity $126 $397 $697 $1,586
Maxim INVESCO ADR $117 $368 $646 $1,470
Maxim Founders Growth & Income** $114 $359 $629 $1,431
Maxim T. Rowe Price Equity/Income $90 $284 $498 $1,135
Maxim INVESCO Balanced $103 $323 $566 $1,289
Maxim Stock Index $62 $194 $340 $774
Maxim Growth Index $62 $194 $340 $774
Maxim Value Index $62 $194 $340 $774
Maxim Ariel MidCap Value $107 $336 $589 $1,341
Maxim T. Rowe Price MidCap Growth $108 $339 $595 $1,354
Maxim Ariel Small-Cap Value $126 $397 $697 $1,586
Maxim INVESCO Small-Cap Growth $110 $346 $606 $1,379
Maxim Loomis Sayles Small-Cap Value $117 $368 $646 $1,470
Maxim Index 600 $62 $194 $340 $774
Maxim Aggressive Profile I $26 $81 $141 $322
Maxim Moderately Aggressive Profile I $26 $81 $141 $322
Maxim Moderate Profile I $26 $81 $141 $322
Maxim Moderately Conservative Profile I $26 $81 $141 $322
Maxim Conservative Profile I $26 $81 $141 $322
</TABLE>
* Formerly, the Investment Grade Corporate Bond Portfolio.
** Formerly, the Founders Blue Chip Portfolio.
<PAGE>
MORE INFORMATION ABOUT THE PORTFOLIOS
-----------------------------------------------------------------
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.
-----------------------------------------------------------------
Each Portfolio follows a distinct set of investment strategies. Sixteen
Portfolios are considered to be "Equity Portfolios" because they invest
primarily in equity securities (mostly common stocks). Seven Portfolios
(including the Money Market Portfolio) are considered to be "Debt Portfolios"
because they invest 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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
o Maxim Ariel Small-Cap Value Portfolio o Maxim INVESCO Small-Cap Value Portfolio
o Maxim Loomis Sayles Small-Cap Value Portfolio o Maxim Ariel MidCap Value Portfolio
o Maxim T. Rowe Price MidCap Growth Portfolio o Maxim Templeton International Equity Portfolio
o Maxim INVESCO ADR Portfolio o Maxim Founders Growth & Income Portfolio
o Maxim T. Rowe Price Equity/Income Portfolio o Maxim Stock Index Portfolio
o Maxim Index 600 Portfolio o Maxim Value Index Portfolio
o Maxim Growth Index Portfolio o Aggressive Profile I Portfolio
o Moderate Profile I Portfolio o Moderately Aggressive Profile I Portfolio
</TABLE>
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, though only the Maxim Templeton International Equity
and Maxim INVESCO ADR Portfolios 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.
The Aggressive Profile I, Moderately Aggressive Profile I and Moderate Profile I
Portfolios are considered "Equity Portfolios" because they invest primarily in
Underlying Portfolios that emphasize equity investments. However, these Profile
Portfolios invest in Underlying Portfolios that invest in debt securities and,
therefore, to that extent are subject to the risks and rewards associated with
debt securities. As well, to the extent an Underlying Portfolio invests in
derivatives, a Profile I Portfolio investing in that portfolio would also be
exposed to the risks and rewards associated with derivative transactions.
Small and Medium Size Companies
Companies that are small or unseasoned (less then 3 years of operating history)
are more likely not to survive or accomplish their goals with the result that
the value of their stock could decline significantly. These companies are less
likely to survive since they are often dependent upon a small number of products
and may have limited financial resources.
Small or unseasoned companies often have a greater degree of change in earnings
and business prospects than larger companies resulting in more volatility in the
price of their securities. As well, the securities of small or unseasoned
companies may not have wide marketability. This fact could cause a Portfolio to
lose money if it needs to sell the securities when there are few interested
buyers. Small or unseasoned companies also normally have fewer outstanding
shares than larger companies. As a result, it may be more difficult to buy or
sell large amounts of these shares without unfavorably impacting the price of
the security. Finally, there may be less public information available about
small or unseasoned companies. As a result, a Sub-Adviser when making a decision
to purchase a security for a Portfolio may not be aware of some problems
associated with the company issuing the security.
Index Portfolios
Certain of the Equity Portfolios are Index Portfolios. This means they are not
actively managed, but are designed to track the performance of specified
benchmarks. The benchmark indexes are described below:
The S&P 500 Composite Stock Price Index** (the "S&P 500") is a widely
recognized, unmanaged, market-value weighted index of 500 stock prices. The
stocks which make up the S&P 500 trade on the New York Stock Exchange, the
American Stock Exchange, or the NASDAQ National Market System. It is generally
acknowledged that the S&P 500 broadly represents the performance of publicly
traded common stocks in the United States.
The S&P Small Cap 600 Stock Index** (the "S&P 600") is a widely recognized,
unmanaged index of 600 stock prices. The index is market-value weighted, meaning
that each stock's influence on the index's performance is directly proportional
to that stock's "market value" (stock price multiplied by the number of
outstanding shares). The stocks which make up the S&P 600 trade on the New York
Stock Exchange, American Stock Exchange, or NASDAQ quotation system. The S&P 600
is designed to monitor the performance of publicly traded common stocks of the
small company sector of the United States equities market.
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.
The S&P/BARRA Value Index** (the "Value Index") is a widely recognized,
unmanaged index that contains the other half of the market value of the S&P 500.
The Value Index is comprised of the stocks representing half of the total market
value of the S&P 500 with the lowest price-to-book value ratios.
**Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", "S&P 600(R)," "Standard &
Poor's 500", "Standard & Poor's SmallCap 600 Index," "S&P SmallCap 600 Index,"
"S&P 500/BARRA Growth Index," and "S&P 500/BARRA Value Index" are trademarks of
The McGraw-Hill Companies, Inc. and have been licensed for use by the Company.
The 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 the Fund.
The S&P 500, S&P 600, Growth Index and Value Index are sponsored by Standard &
Poor's, which is responsible for determining which stocks are represented on the
indices.
None of the Portfolios is endorsed, sold or promoted by any of the sponsors of
the Benchmark Indices (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 their
respective Benchmark Indices or the data therein. Inclusion of a stock in a
Benchmark Index does not imply that it is a good investment.
Total returns for the S&P 500, S&P 600, S&P 400, Growth Index and Value 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.
Debt Portfolios
Each of the Debt Portfolios will normally invest at least 65% of its assets in
debt securities. Therefore, as an investor in Debt Portfolios, the return on
your investment will be based primarily on the risks and rewards of 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. The Debt Portfolios include:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
o Maxim Bond Portfolio o Maxim Loomis Sayles Corporate Bond Portfolio
o Maxim U.S. Government Securities Portfolio o Maxim Bond Index Portfolio
o Moderately Conservative Profile I Portfolio o Conservative Profile I Portfolio
o Maxim Money Market Portfolio
</TABLE>
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 below 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
following Portfolios may invest in below investment grade debt securities: Maxim
Bond, Maxim Loomis Sayles Corporate Bond, Maxim INVESCO Small-Cap Growth, Maxim
Templeton International Equity, Maxim T. Rowe Price Equity/Income, Moderately
Conservative Profile I, and Conservative Profile I.
The Debt Portfolios may invest in debt securities of U.S. and foreign issuers.
Investments in foreign securities present special risks and other considerations
- - these are discussed below under "Foreign Securities" on page .
While the Debt Portfolios intend to principally invest in debt securities, they
may make other types of investments. For example, some of the Debt Portfolios
may invest a portion of their assets in equity securities. Equity securities are
discussed above under "Equity Portfolios." Each of the Debt Portfolios (except
the Maxim Money Market, Maxim Moderately Conservative Profile I and Maxim
Conservative Profile I Portfolios) 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 .
The Moderately Conservative Profile I and Conservative Profile I Portfolios are
considered "Debt Portfolios" because they invest primarily in Underlying
Portfolios that emphasize debt investments. However, these Profile I Portfolios
may invest in Underlying Portfolios that invest in equity securities, and,
therefore, to that extent are subject to the risks and rewards associated with
equity securities. As well, to the extent an Underlying Portfolio invests in
derivatives, a Profile I Portfolio investing in that Underlying Portfolio would
also be exposed to the risks and rewards associated with derivative
transactions.
Debt Index Portfolio
The Bond Index Portfolio is not actively managed, but is designed to track the
performance of a specified benchmark. The Benchmark Index is described below:
Lehman Aggregate Bond Index
The Lehman Aggregate Bond Index covers the U.S. investment grade fixed rate bond
market, including government and corporate securities, agency mortgage
pass-through securities, commercial mortgage-backed securities, and asset-backed
securities having a final maturity of greater than one year that are traded on
U.S. financial markets.
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
Foreign Securities
The Maxim Templeton International Equity and Maxim INVESCO ADR Portfolios pursue
investment in foreign securities as their principal investment strategy.
Therefore, as an investor in these Portfolios, the return on your investment
will be based substantially on the rewards and risks relating to foreign
investment. However, many of the other 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.
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.
As noted, the Maxim Templeton International Equity and Maxim INVESCO ADR
Portfolios have substantial exposure to foreign markets since these Portfolios
invest primarily in securities of foreign issuers. The other Portfolios which
may invest in foreign securities have some exposure to foreign markets. This
exposure will be minimized to the extent these Portfolios invest primarily in
securities of U.S. issuers.
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 and Profile Portfolios, 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 Bond 0.60%
Maxim U.S. Government Securities 0.60%
Maxim Loomis Sayles Corporate Bond 0.90%
Maxim Templeton International Equity 1.00%
Maxim INVESCO ADR 1.00%
Maxim Founders Growth & Income* 1.00%
Maxim T. Rowe Price Equity/Income 0.80%
Maxim INVESCO Balanced 1.00%
Maxim Ariel MidCap Value 0.95%
Maxim T. Rowe Price MidCap Growth 1.00%
Maxim Ariel Small-Cap Value 1.00%
Maxim Loomis Sayles Small-Cap Value 1.00%
Maxim INVESCO Small-Cap Growth 0.95%
Maxim Stock Index 0.60%
Maxim Index 600 0.60%
Maxim Value Index 0.60%
Maxim Growth Index 0.60%
Maxim Bond Index** 0.50%
Aggressive Profile I 0.25%
Moderately Aggressive Profile I 0.25%
Moderate Profile I 0.25%
Moderately Conservative I 0.25%
Conservative Profile I 0.25%
</TABLE>
* Formerly, the Maxim Founders Blue Chip Portfolio.
** Formerly, the Maxim Investment Grade Corporate Bond Portfolio.
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, Maxim
Bond, Maxim Bond Index, Maxim U.S. Government Securities, Maxim Stock Index,
Maxim Index 600, Maxim Value Index, Maxim Growth Index and the Profile
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>
Loomis Sayles & Company, L.P. Templeton Investment Counsel, Inc.
- ----------------------------- ----------------------------------
Maxim Looms Sayles Corporate Bond Portfolio Maxim Templeton International Equity Portfolio
Maxim Loomis Sayles Small-Cap Value Portfolio
Ariel Capital Management, Inc. T. Rowe Price Associates, Inc.
- ------------------------------ ------------------------------
Maxim Ariel MidCap Value Portfolio Maxim T. Rowe Price MidCap Growth Portfolio
Maxim Ariel Small-Cap Value Portfolio Maxim T. Rowe Price Equity/Income Portfolio
INVESCO Funds Group, Inc. INVESCO Capital Management, Inc.
Maxim INVESCO Small-Cap Growth Portfolio Maxim INVESCO ADR Portfolio
Maxim INVESCO Balanced Portfolio
Founders Asset Management LLC
Maxim Founders Growth & Income Portfolio
</TABLE>
Following is additional information about each sub-adviser:
Templeton Investment Counsel, Inc. ("TICI") is an indirect subsidiary of
Templeton Worldwide, Inc., which in turn is a direct, wholly-owned subsidiary of
Franklin Resources, Inc. TICI is a Florida corporation with its principal
business address at Broward Financial Centre, 500 East Broward Boulevard, Suite
2100, Fort Lauderdale, Florida 33394.
The day-to-day manager of the Maxim Templeton International Equity Portfolio is
Mark Beveridge, Senior Vice President, TICI (since 1985).
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.
The Maxim T. Rowe Price MidCap Growth Portfolio is managed by an Investment
Advisory Committee chaired by Brian W.H. Berghuis. 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 Mid-Cap Growth Fund. Mr. Berghuis has been Chairman of the T. Rowe Price
Mid-Cap Growth Fund since 1992. He has been managing investments since 1988 and
joined T. Rowe Price in 1985.
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 Small-Cap Growth Portfolio is
provided by a team of individuals, led by Timothy J. Miller (since 1997). Mr.
Miller also serves as the co-portfolio manager of the INVESCO Small Company
Growth Fund (since 1997); co-portfolio manager of the INVESCO Dynamics Fund
(since 1993); portfolio manager of the INVESCO Endeavor Fund (since 1998);
senior vice president (1995 to present), vice president (1993-1995) and
portfolio manager (1992 to present) of INVESCO. Formerly (1979 to 1992), Mr.
Miller was analyst and portfolio manager with Mississippi Valley Advisors. Trent
E. May is a co-portfolio manager of the Maxim INVESCO Small-Cap Growth Portfolio
and INVESCO Small Company Growth Fund (since 1997); co-portfolio manager of the
INVESCO Blue Chip Fund (since 1996); co-portfolio manager of the INVESCO Growth
& Income Fund (since 1998). Formerly, Mr. May was senior equity fund
manager/equity analyst at Munder Capital Management in Detroit. Stacie Cowell is
a the lead portfolio manager of the Maxim INVESCO Small-Cap Growth Portfolio and
INVESCO Small Company Growth Fund (since 1997); portfolio manager (since 1996)
of INVESCO. Formerly, Ms. Cowell was senior equity analyst with Founders Asset
Management; and was capital markets and trading analyst with Chase Manhattan
Bank in New York.
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).
INVESCO Capital Management, Inc. ("ICM"), is a Delaware corporation and a wholly
owned subsidiary of INVESCO. ICM is registered as an Investment Adviser with the
Securities and Exchange Commission. Its principal business address is 1315
Peachtree Street, N.E., Atlanta, Georgia 30309.
The day-to-day manager of the Maxim INVESCO ADR Portfolio is W. Lindsay
Davidson, who also serves as portfolio manager for the INVESCO ADR International
Equity Management Fund. Mr. Davidson has been with INVESCO PLC since 1984 and in
1989 he assumed responsibility for global and international portfolios. Mr.
Davidson began his investment career in 1974 and previously worked for both
insurance and reinsurance companies in England. He holds an M.A. (Honours)
degree in Economics from Edinburgh University.
Ariel Capital Management, Inc. (Ariel) is a privately held minority-owned money
manager registered with the Securities and Exchange Commission as an investment
adviser. It is an Illinois corporation with its principal business address at
307 North Michigan Avenue, Chicago, Illinois 60601.
The day-to-day manager for the Maxim Ariel Small-Cap Value Portfolio is John W.
Rogers, Jr. - - B.A. in Economics, Princeton University. Mr. Rogers' business
experience during the past five years is as Chief Investment Officer, Ariel
Capital Management and Portfolio Manager, Ariel Fund (formerly known as the
Ariel Growth Fund).
The day-to-day manager for the Maxim Ariel MidCap Value Portfolio is Eric T.
McKissack, CFA - - B.S. in Management and Architecture, Massachusetts Institute
of Technology and MBA, University of California at Berkley. Mr. McKissack's
business experience during the past five years is as Vice Chairman and Co-Chief
Investment, Ariel Capital Management and Portfolio Manager, Ariel Appreciation
Fund.
Loomis, Sayles & Company, L.P. ("Loomis Sayles") is a Delaware limited
partnership, registered as an investment adviser with the Securities and
Exchange Commission. Its principal business address is One Financial Center,
Boston, Massachusetts 02111.
The day-to-day manager of the Maxim Loomis Sayles Corporate Bond Portfolio is
Daniel J. Fuss, Executive Vice President of Loomis Sayles who also serves as the
fund manager of the Loomis Sayles Bond Fund. Mr. Fuss has served as the
portfolio manager of the Loomis Sayles Bond Fund since its inception in 1991.
Joseph R. Gatz is the lead manager of the Maxim Loomis Sayles Small-Cap Value
Portfolio. Dawn Alston Paige and Daniel J. Thelen are the co-portfolio managers.
Mr. Gatz joined Loomis Sayles in November, 1999 from Banc One Investment
Advisors Corporation where he managed over $2 billion in mutual fund and
institutional accounts. He was employed by Banc One and certain of its corporate
predecessors since 1993. Mr. Gatz has fifteen years experience specializing in
small cap value investing. Ms. Paige has been associated with Loomis Sayles'
small cap value product as an analyst and co-portfolio manager for over seven
years. Mr. Thelen joined Loomis Sayles in 1196 and has served as analyst for the
small cap team for four years. Prior to that, Mr. Thelen spent six years as an
analyst and manager of the Valuation Services Group at PricewaterhouseCoopers
LLP where he was responsible for valuing hundreds of small and mid-sized
companies across many industries. They will be supported in their management of
the Portfolio by Dean Gulis who has extensive small cap experience and ten years
of experience as Director of Research at Roney & Company.
Founders Asset Management LLC ("Founders") is a Delaware limited liability
company, registered as an investment adviser with the Securities and Exchange
Commission. Its principal business address is 2930 East Third Avenue, Denver,
Colorado 80206.
Thomas M. Arrington, Chartered Financial Analyst and Vice President of Founders,
since February 1999, is the lead portfolio manager for the Maxim Founders Growth
& Income Portfolio and the Dreyfus Founders Growth and Income Fund. Prior to
joining Founders in December 1998, Mr. Arrington was a vice president and
director of income equity strategy at HighMark Capital Management, Inc., a
subsidiary of Union BanCal Corporation where he was employed from 1987 to 1998.
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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
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.
</TABLE>
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 Bond, Maxim Bond Index and Maxim U.S. Government Securities
Portfolios ordinarily distribute dividends from net investment income
quarterly.
o The Maxim Founders Growth & Income, Maxim T. Rowe Price Equity/Income,
Maxim INVESCO Balanced, Maxim Ariel MidCap Value, Maxim T. Rowe Price
MidCap Growth, Maxim Ariel Small-Cap Value, Maxim Loomis Sayles Small-Cap
Value, Maxim INVESCO Small-Cap Growth, Maxim Stock Index, Maxim Index 600,
Maxim Value Index, Maxim Growth Index, Maxim Loomis Sayles Corporate Bond
and all Profile Portfolios ordinarily distribute dividends semi-annually.
o The Maxim Templeton International Equity and Maxim INVESCO ADR Portfolios
ordinarily distribute dividends 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:
Year Ended December 31,
<TABLE>
<S> <C> <C> <C> <C> <C>
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 BOND 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 $ 1.2169 $ 1.2119 $ 1.2059 $ 1.2301 $ 1.1352
Income from Investment Operations
Net investment income 0.0718 0.0740 0.0767 0.0745 0.0736
Net realized and unrealized gain (loss) (0.0753) 0.0050 0.0060 (0.0242) 0.0949
Total Income (Loss) From
Investment Operations (0.0035) 0.0790 0.0827 0.0503 0.1685
Less Distributions
From net investment income (0.0713) (0.0740) (0.0767) (0.0745) (0.0736)
Total Distributions (0.0713) (0.0740) (0.0767) (0.0745) (0.0736)
Net Asset Value, End of Period $ 1.1421 $ 1.2169 $ 1.2119 $ 1.2059 $ 1.2301
Total Return (0.27%) 6.65% 7.07% 4.26% 15.21%
Net Assets, End of Period $ 70,255,648 $ 76,099,882 $ 70,283,703 $ 78,093,109 $ 80,025,099
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 6.03% 6.00% 6.22% 6.10% 6.16%
Portfolio Turnover Rate 67.43% 42.50% 90.81% 117.39% 191.58%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM STOCK 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 $ 3.5821 $ 2.9474 $ 2.3650 $ 1.9796 $ 1.4978
Income from Investment Operations
Net investment income 0.0272 0.0283 0.0364 0.0336 0.0334
Net realized and unrealized gain 0.6682 0.7538 0.7196 0.3960 0.4963
Total Income From Investment Operations 0.6954 0.7821 0.7560 0.4296 0.5297
Less Distributions
From net investment income (0.0271) (0.0284) (0.0364) (0.0336) (0.0332)
From net realized gains (0.2060) (0.1190) (0.1372) (0.0106) (0.0147)
Total Distributions (0.2331) (0.1474) (0.1736) (0.0442) (0.0479)
Net Asset Value, End of Period $ 4.0444 $ 3.5821 $ 2.9474 $ 2.3650 $ 1.9796
Total Return 19.73% 26.79% 32.20% 21.81% 35.60%
Net Assets, End of Period $ 1,166,072,152 $ 1,029,722,471 $ 817,386,568 $ 936,806,358 $ 707,459,637
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 0.71% 0.87% 1.15% 1.58% 1.91%
Portfolio Turnover Rate 10.69% 12.91% 17.30% 3.31% 5.25%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM U.S. GOVERNMENT SECURITIES 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 $ 1.1049 $ 1.0918 $ 1.0738 $ 1.1001 $ 1.0138
Income from Investment Operations
Net investment income 0.0630 0.0646 0.0707 0.0675 0.0723
Net realized and unrealized gain (loss) (0.0600) 0.0126 0.0180 (0.0263) 0.0863
Total Income From Investment Operations 0.0030 0.0772 0.0887 0.0412 0.1586
Less Distributions
From net investment income (0.0620) (0.0641) (0.0707) (0.0675) (0.0723)
Total Distributions (0.0620) (0.0641) (0.0707) (0.0675) (0.0723)
Net Asset Value, End of Period $ 1.0459 $ 1.1049 $ 1.0918 $ 1.0738 $ 1.1001
Total Return 0.30% 7.24% 8.51% 3.92% 16.09%
Net Assets, End of Period $ 76,591,857 $ 78,875,126 $ 58,311,917 $ 64,077,863 $ 62,473,959
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 5.83% 5.91% 6.32% 6.22% 6.76%
Portfolio Turnover Rate 51.82% 56.64% 55.54% 145.02% 185.57%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM BOND 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 $ 1.3010 $ 1.2856 $ 1.2774 $ 1.3161 $ 1.2019
Income from Investment Operations
Net investment income 0.0695 0.0737 0.0769 0.0777 0.0794
Net realized and unrealized gain (loss) (0.0736) 0.0154 0.0081 (0.0387) 0.1164
Total Income (Loss) From
Investment Operations (0.0041) 0.0891 0.0850 0.0390 0.1958
Less Distributions
From net investment income (0.0693) (0.0737) (0.0768) (0.0777) (0.0816)
Total Distributions (0.0693) (0.0737) (0.0768) (0.0777) (0.0816)
Net Asset Value, End of Period $ 1.2276 $ 1.3010 $ 1.2856 $ 1.2774 $ 1.3161
Total Return (0.31%) 7.08% 6.85% 3.14% 16.71%
Net Assets, End of Period $ 133,484,683 $ 130,436,898 $ 114,875,960 $ 100,722,152 $ 95,210,404
Ratio of Expenses to Average Net Assets 0.56% 0.60% 0.60% 0.60% 0.60%
Ratio of Net Investment Income to
Average Net Assets 5.56% 5.69% 6.02% 6.08% 6.30%
Portfolio Turnover Rate 127.95% 59.84% 140.35% 118.50% 159.21%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM INDEX 600 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 $ 0.7921 $ 1.2588 $ 1.2370 $ 1.1680 $ 0.9540
Income from Investment Operations
Net investment income 0.0049 0.0069 0.0081 0.0124 0.0102
Net realized and unrealized gain (loss) 0.0809 (0.0532) 0.2419 0.1659 0.2393
Total Income (Loss) From 0.0858 (0.0463) 0.2500 0.1783 0.2495
Investment Operations
Less Distributions
From net investment income (0.0049) (0.0069) (0.0081) (0.0124) (0.0197)
From net realized gains (0.0731) (0.4135) (0.2201) (0.0969) (0.0158)
Total Distributions (0.0780) (0.4204) (0.2282) (0.1093) (0.0355)
Net Asset Value, End of Period $ 0.7999 $ 0.7921 $ 1.2588 $ 1.2370 $ 1.1680
Total Return 11.85% (1.58%) 21.00% 15.30% 26.24%
Net Assets, End of Period $ 25,168,640 $ 23,618,628 $ 121,454,805 $ 80,783,692 $ 51,610,284
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 0.66% 0.25% 0.66% 1.04% 1.00%
Portfolio Turnover Rate 37.75% 59.18% 102.45% 39.66% 30.17%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM TEMPLETON INTERNATIONAL EQUITY 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 $ 1.1874 $ 1.2786 $ 1.3229 $ 1.1395 $ 1.0673
Income from Investment Operations
Net investment income 0.0155 0.0270 0.0205 0.0136 0.0190
Net realized and unrealized gain (loss) 0.3391 (0.0911) 0.0053 0.2087 0.0756
Total Income (Loss) From
Investment Operations 0.3546 (0.0641) 0.0258 0.2223 0.0946
Less Distributions
From net investment income (0.0154) (0.0271) (0.0204) (0.0136) (0.0224)
From net realized gains (0.0077) (0.0497) (0.0253)
Total Distributions (0.0231) (0.0271) (0.0701) (0.0389) (0.0224)
Net Asset Value, End of Period $ 1.5189 $ 1.1874 $ 1.2786 $ 1.3229 $ 1.1395
Total Return 29.91% (5.00%) 1.99% 19.59% 8.93%
Net Assets, End of Period $ 101,354,181 $ 120,381,642 $ 132,774,511 $ 96,172,049 $ 55,017,668
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.24% 1.21% 1.21% 1.42% 1.62%
- - After Reimbursement # 1.23% 1.20% 1.20% 1.39% 1.50%
Ratio of Net Investment Income to
Average Net Assets:
- - Before Reimbursement 0.93% 2.04% 1.69% 1.21% 1.58%
- - After Reimbursement # 0.94% 2.05% 1.70% 1.24% 1.70%
Portfolio Turnover Rate 58.75% 40.02% 34.30% 22.21% 20.28%
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM ARIEL MIDCAP VALUE 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 $ 1.8417 $ 1.5532 $ 1.4327 $ 1.3538 $ 1.1003
Income from Investment Operations
Net investment income (loss) 0.0115 (0.0092) (0.0437) (0.0083) 0.0018
Net realized and unrealized gain 0.0029 0.5058 0.2257 0.0890 0.2893
Total Income From Investment Operations 0.0144 0.4966 0.1820 0.0807 0.2911
Less Distributions
From net investment income (0.0115) (0.0317)
From net realized gains (0.3034) (0.2081) (0.0615) (0.0018) (0.0059)
Total Distributions (0.3149) (0.2081) (0.0615) (0.0018) (0.0376)
Net Asset Value, End of Period $ 1.5412 $ 1.8417 $ 1.5532 $ 1.4327 $ 1.3538
Total Return 0.26% 33.77% 12.95% 5.96% 26.50%
Net Assets, End of Period $ 67,498,788 $ 317,547,944 $ 233,939,911 $ 214,710,803 $ 148,264,194
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.04% 1.02% 1.06% 1.08% 1.15%
- - After Reimbursement # 1.04% 1.02% 1.06% 1.07% 1.10%
Ratio of Net Investment Income (Loss) to
Average Net Assets:
- - Before Reimbursement 0.36% (0.64%) (0.51%) (0.67%) 0.08%
- - After Reimbursement # 0.36% (0.64%) (0.51%) (0.66%) 0.13%
Portfolio Turnover Rate 182.75% 87.81% 139.74% 80.31% 167.21%
*The per share information was computed based on average shares.
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM VALUE 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 $ 1.8953 $ 1.8136 $ 1.4538 $ 1.2623 $ 0.9614
Income from Investment Operations
Net investment income 0.0243 0.0279 0.0278 0.0298 0.0305
Net realized and unrealized gain 0.1779 0.2301 0.4631 0.2287 0.3198
Total Income From Investment Operations 0.2022 0.2580 0.4909 0.2585 0.3503
Less Distributions
From net investment income (0.0243) (0.0278) (0.0278) (0.0298) (0.0359)
From net realized gains (0.2690) (0.1485) (0.1033) (0.0372) (0.0135)
Total Distributions (0.2933) (0.1763) (0.1311) (0.0670) (0.0494)
Net Asset Value, End of Period $ 1.8042 $ 1.8953 $ 1.8136 $ 1.4538 $ 1.2623
Total Return 11.39% 14.48% 34.08% 20.63% 36.80%
Net Assets, End of Period $ 391,562,376 $ 326,339,498 $ 237,421,804 $ 122,283,026 $ 65,183,898
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 1.31% 1.54% 1.83% 2.38% 2.87%
Portfolio Turnover Rate 70.11% 39.67% 26.03% 16.31% 18.11%
<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 ARIEL SMALL-CAP VALUE 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 $ 0.9538 $ 0.9154 $ 1.2480 $ 1.0669 $ 0.9974
Income from Investment Operations
Net investment income 0.0019 0.0022 0.0067 0.0095 0.0286
Net realized and unrealized gain (loss) (0.0631) 0.0721 0.3223 0.1811 0.1234
Total Income (Loss) From
Investment Operations (0.0612) 0.0743 0.3290 0.1906 0.1520
Less Distributions
From net investment income (0.0019) (0.0022) (0.0067) (0.0095) (0.0636)
From net realized gains (0.1067) (0.0337) (0.6549) (0.0189)
Total Distributions (0.1086) (0.0359) (0.6616) (0.0095) (0.0825)
Net Asset Value, End of Period $ 0.7840 $ 0.9538 $ 0.9154 $ 1.2480 $ 1.0669
Total Return (5.80%) 8.28% 27.86% 17.94% 15.51%
Net Assets, End of Period $ 35,290,690 $ 38,747,052 $ 22,526,242 $ 36,599,651 $ 20,769,579
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.28% 1.27% 1.33% 1.42% 1.52%
- - After Reimbursement # 1.23% 1.26% 1.28% 1.31% 1.35%
Ratio of Net Investment Income to
Average Net Assets:
- - Before Reimbursement 0.16% 0.26% 0.59% 0.79% 2.34%
- - After Reimbursement # 0.21% 0.27% 0.64% 0.90% 2.51%
Portfolio Turnover Rate 46.17% 26.29% 82.83% 30.61% 17.78%
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM LOOMIS SAYLES SMALL-CAP VALUE 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 $ 1.4482 $ 1.5316 $ 1.4028 $ 1.1605 $ 0.9755
Income from Investment Operations
Net investment income 0.0079 0.0139 0.0103 0.0091 0.0075
Net realized and unrealized gain (loss) (0.0219) (0.0492) 0.3273 0.3376 0.2840
Total Income (Loss) From
Investment Operations (0.0140) (0.0353) 0.3376 0.3467 0.2915
Less Distributions
From net investment income (0.0084) (0.0138) (0.0100) (0.0091) (0.0945)
From net realized gains (0.0909) (0.0343) (0.1988) (0.0953) (0.0120)
Total Distributions (0.0993) (0.0481) (0.2088) (0.1044) (0.1065)
Net Asset Value, End of Period $ 1.3349 $ 1.4482 $ 1.5316 $ 1.4028 $ 1.1605
Total Return (0.43%) (2.28%) 24.50% 30.09% 29.96%
Net Assets, End of Period $ 93,087,906 $ 127,807,361 $ 183,322,635 $ 79,944,926 $ 28,594,611
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.15% 1.11% 1.11% 1.27% 1.46%
- - After Reimbursement # 1.14% 1.11% 1.11% 1.26% 1.30%
Ratio of Net Investment Income to
Average Net Assets:
- - Before Reimbursement 0.52% 0.81% 0.89% 0.97% 0.49%
- - After Reimbursement # 0.53% 0.81% 0.89% 0.98% 0.65%
Portfolio Turnover Rate 105.57% 149.12% 93.28% 62.63% 99.48%
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM LOOMIS SAYLES CORPORATE BOND 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 $ 1.1118 $ 1.1981 $ 1.1618 $ 1.1521 $ 0.9716
Income from Investment Operations
Net investment income 0.0873 0.0838 0.0764 0.0825 0.0842
Net realized and unrealized gain (loss) (0.0344) (0.0429) 0.0689 0.0324 0.1994
Total Income From Investment Operations 0.0529 0.0409 0.1453 0.1149 0.2836
Less Distributions
From net investment income (0.0892) (0.0839) (0.0762) (0.0825) (0.1001)
From net realized gains (0.0112) (0.0433) (0.0328) (0.0227) (0.0030)
Total Distributions (0.1004) (0.1272) (0.1090) (0.1052) (0.1031)
Net Asset Value, End of Period $ 1.0643 $ 1.1118 $ 1.1981 $ 1.1618 $ 1.1521
Total Return 4.87% 3.43% 12.70% 10.35% 30.19%
Net Assets, End of Period $ 191,419,344 $ 199,386,033 $ 158,884,389 $ 83,645,029 $ 45,530,190
Ratio of Expenses to Average Net Assets 0.90% 0.90% 0.90% 0.90% 0.90%
Ratio of Net Investment Income to
Average Net Assets 7.74% 7.41% 7.14% 7.68% 7.89%
Portfolio Turnover Rate 28.00% 55.47% 52.69% 40.02% 24.70%
<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 SMALL-CAP GROWTH 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 $ 1.8506 $ 1.5955 $ 1.4330 $ 1.2734 $ 1.0054
Income from Investment Operations
Net investment income (loss) (0.0038) (0.0048) 0.0009 0.0024 0.0069
Net realized and unrealized gain 1.4263 0.2842 0.2612 0.3380 0.3118
Total Income From Investment Operations 1.4225 0.2794 0.2621 0.3404 0.3187
Less Distributions
From net investment income (0.0009) (0.0024) (0.0341)
From net realized gains (0.4386) (0.0243) (0.0987) (0.1784) (0.0166)
Total Distributions (0.4386) (0.0243) (0.0996) (0.1808) (0.0507)
Net Asset Value, End of Period $ 2.8345 $ 1.8506 $ 1.5955 $ 1.4330 $ 1.2734
Total Return 80.78% 17.62% 18.70% 26.73% 31.79%
Net Assets, End of Period $ 181,228,671 $ 82,115,568 $ 62,251,873 $ 31,827,778 $ 6,385,180
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.09% 1.11% 1.19% 1.46% 2.30%
- - After Reimbursement # 1.07% 1.10% 1.10% 1.10% 1.10%
Ratio of Net Investment Income (Loss) to
Average Net Assets:
- - Before Reimbursement (0.36%) (0.32%) (0.62%)
(0.08%) (0.11%)
- - After Reimbursement # (0.34%) (0.31%) 0.01% 0.25% 0.58%
Portfolio Turnover Rate 223.65% 149.15% 174.65% 265.05% 266.64%
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM INVESCO ADR 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 $ 1.6252 $ 1.4804 $ 1.3508 $ 1.1255 $ 0.9859
Income from Investment Operations
Net investment income 0.0061 0.0123 0.0114 0.0112 0.0120
Net realized and unrealized gain 0.3614 0.1453 0.1512 0.2266 0.1396
Total Income From Investment Operations 0.3675 0.1576 0.1626 0.2378 0.1516
Less Distributions
From net investment income (0.0057) (0.0128) (0.0116) (0.0112) (0.0120)
From net realized gains (0.0101) (0.0214) (0.0013)
Total Distributions (0.0158) (0.0128) (0.0330) (0.0125) (0.0120)
Net Asset Value, End of Period $ 1.9769 $ 1.6252 $ 1.4804 $ 1.3508 $ 1.1255
Total Return 22.67% 10.64% 12.08% 21.17% 15.48%
Net Assets, End of Period $ 141,769,982 $ 28,296,279 $ 16,581,357 $ 7,694,858 $ 2,681,969
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.16% 1.32% 1.63% 2.29% 2.78%
- - After Reimbursement # 1.14% 1.30% 1.30% 1.33% 1.50%
Ratio of Net Investment Income (Loss) to
Average Net Assets:
- - Before Reimbursement 0.57% 0.84% 0.69% 0.24%
(0.11%)
- - After Reimbursement # 0.59% 0.86% 1.02% 1.20% 1.17%
Portfolio Turnover Rate 22.06% 28.66% 19.56% 15.25% 5.88%
# Percentages are shown net of expenses reimbursed by 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%
*Annualized
(A) The portfolio commenced operations on October 1, 1996.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM T. ROWE PRICE MIDCAP GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999 and 1998, and the period ended December 31, 1997 are as
follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.3472 $ 1.1069 $ 1.0000
Income from Investment Operations
Net investment income (loss) (0.0040) (0.0016)
Net realized and unrealized gain 0.3274 0.2471 0.1086
Total Income From Investment Operations 0.3234 0.2455 0.1086
Less Distributions
From net realized gains (0.0875) (0.0052) (0.0017)
Total Distributions (0.0875) (0.0052) (0.0017)
Net Asset Value, End of Period $ 1.5831 $ 1.3472 $ 1.1069
Total Return 24.60% 22.23% 10.86%
Net Assets, End of Period $ 203,089,451 $ 139,762,438 $ 56,704,297
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.11% 1.16% 1.30%*
- - After Reimbursement # 1.05% 1.05% 1.05%*
Ratio of Net Investment Loss to
Average Net Assets:
- - Before Reimbursement (0.41%) (0.32%) (0.41%)*
- - After Reimbursement # (0.35%) (0.21%) (0.16%)*
Portfolio Turnover Rate 66.80% 52.50% 24.28%
*Annualized
# Percentages are shown net of expenses reimbursed by GW Capital Management,
LLC.
(A) The portfolio commenced operations on July 1, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM FOUNDERS GROWTH & INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999 and 1998, and the period ended December 31, 1997 are as
follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.1448 $ 1.0228 $ 1.0000
Income from Investment Operations
Net investment income 0.0004 0.0157 0.0089
Net realized and unrealized gain 0.1633 0.1655 0.0228
Total Income From Investment Operations 0.1637 0.1812 0.0317
Less Distributions
From net investment income (0.0004) (0.0157) (0.0089)
From net realized gains (0.0665) (0.0435)
Total Distributions (0.0669) (0.0592) (0.0089)
Net Asset Value, End of Period $ 1.2416 $ 1.1448 $ 1.0228
Total Return 15.04% 17.85% 3.17%
Net Assets, End of Period $ 147,265,224 $ 120,887,237 $ 94,206,892
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.12% 1.15% 1.15%*
- - After Reimbursement # 1.11% 1.15% 1.14%*
Ratio of Net Investment Income to
Average Net Assets:
- - Before Reimbursement 0.02% 1.46% 1.77%*
- - After Reimbursement # 0.03% 1.46% 1.78%*
Portfolio Turnover Rate 173.72% 287.17% 111.45%
*Annualized
# Percentages are shown net of expenses reimbursed by GW Capital Management,
LLC.
(A) The portfolio commenced operations on July 1, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM AGGRESSIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0794 $ 0.9505 $ 1.0000
Income from Investment Operations
Net investment income 0.0036 0.0060 0.0047
Capital gain distributions received 0.0969 0.0286 0.0712
Total distributions received 0.1005 0.0346 0.0759
Net realized and unrealized gain (loss) on investments 0.1346 0.1061 (0.0432)
Total Income From Investment Operations 0.2351 0.1407 0.0327
Less Distributions
From net investment income (0.0011) (0.0111) (0.0127)
From net realized gains (0.0796) (0.0007) (0.0695)
Total Distributions (0.0807) (0.0118) (0.0822)
Net Asset Value, End of Period $ 1.2338 $ 1.0794 $ 0.9505
Total Return 21.83% 14.84% 3.31%
Net Assets, End of Period $ 19,006,974 $ 7,608,452 $ 697,434
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 0.09% 0.97% 2.38% *
Portfolio Turnover Rate 77.51% 94.75% 59.90%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM MODERATELY AGGRESSIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0668 $ 0.9676 $ 1.0000
Income from Investment Operations
Net investment income 0.0142 0.0136 0.0075
Capital gain distributions received 0.0768 0.0284 0.0568
Total distributions received 0.0910 0.0420 0.0643
Net realized and unrealized gain (loss) on investments 0.1430 0.0790 (0.0279)
Total Income From Investment Operations 0.2340 0.1210 0.0364
Less Distributions
From net investment income (0.0099) (0.0217) (0.0141)
From net realized gains (0.0727) (0.0001) (0.0547)
Total Distributions (0.0826) (0.0218) (0.0688)
Net Asset Value, End of Period $ 1.2182 $ 1.0668 $ 0.9676
Total Return 22.05% 12.54% 3.66%
Net Assets, End of Period $ 36,469,448 $ 15,066,086 $ 1,630,969
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 0.96% 1.80% 4.19% *
Portfolio Turnover Rate 101.16% 123.12% 41.30%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MODERATE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0503 $ 0.9661 $ 1.0000
Income from Investment Operations
Net investment income 0.0226 0.0171 0.0090
Capital gain distributions received 0.0706 0.0159 0.0477
Total distributions received 0.0932 0.0330 0.0567
Net realized and unrealized gain (loss) on investments 0.0780 0.0769 (0.0308)
Total Income From Investment Operations 0.1712 0.1099 0.0259
Less Distributions
From net investment income (0.0182) (0.0257) (0.0144)
From net realized gains (0.0782) (0.0454)
Total Distributions (0.0964) (0.0257) (0.0598)
Net Asset Value, End of Period $ 1.1251 $ 1.0503 $ 0.9661
Total Return 16.43% 11.41% 2.60%
Net Assets, End of Period $ 27,960,665 $ 12,600,896 $ 1,044,081
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 1.91% 2.27% 5.51% *
Portfolio Turnover Rate 105.60% 114.39% 31.39%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM MODERATELY CONSERVATIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0470 $ 0.9909 $ 1.0000
Income from Investment Operations
Net investment income 0.0309 0.0266 0.0132
Capital gain distributions received 0.0450 0.0121 0.0182
Total distributions received 0.0759 0.0387 0.0314
Net realized and unrealized gain (loss) on investments 0.0104 0.0576 (0.0085)
Total Income From Investment Operations 0.0863 0.0963 0.0229
Less Distributions
From net investment income (0.0271) (0.0398) (0.0151)
From net realized gains (0.0464) (0.0004) (0.0169)
Total Distributions (0.0735) (0.0402) (0.0320)
Net Asset Value, End of Period $ 1.0598 $ 1.0470 $ 0.9909
Total Return 8.34% 9.75% 2.29%
Net Assets, End of Period $ 13,672,483 $ 9,586,577 $ 534,975
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 2.70% 3.41% 6.02% *
Portfolio Turnover Rate 116.96% 112.09% 32.97%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM CONSERVATIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0301 $ 1.0088 $ 1.0000
Income from Investment Operations
Net investment income 0.0428 0.0412 0.0145
Capital gain distributions received 0.0236 0.0149 0.0121
Total distributions received 0.0664 0.0561 0.0266
Net realized and unrealized gain (loss) on investments (0.0169) 0.0266 0.0094
Total Income From Investment Operations 0.0495 0.0827 0.0360
Less Distributions
From net investment income (0.0406) (0.0613) (0.0159)
From net realized gains (0.0276) (0.0001) (0.0113)
Total Distributions (0.0682) (0.0614) (0.0272)
Net Asset Value, End of Period $ 1.0114 $ 1.0301 $ 1.0088
Total Return 4.86% 8.25% 3.60%
Net Assets, End of Period $ 17,142,458 $ 15,519,563 $ 268,416
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 3.94% 4.81% 8.83% *
Portfolio Turnover Rate 80.14% 99.16% 25.56%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
</TABLE>
<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.
