MAXIM SERIES FUND INC, 485BPOS, 2000-04-26

MAXIM SERIES FUND INC
485BPOS, 2000-04-26
DRILLING OIL & GAS WELLS

Previous: POLICY MANAGEMENT SYSTEMS CORP, 10-Q/A, 2000-04-26

Next: ARINCO COMPUTER SYSTEMS INC, PRE 14A, 2000-04-26

As filed with the Securities and Exchange Commission on April 26, 2000

Registration No. 2-75503

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 (X)

Pre-Effective Amendment No. ( )
-------

Post-Effective Amendment No. 69 (X)
-----

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940

Amendment No. 69 (X)
----

MAXIM SERIES FUND, INC.
(Exact Name of Registrant as Specified in Charter)
8515 E. Orchard Road
Englewood, Colorado 80111

Registrant's Telephone Number, including Area Code: (303) 689-3000

W. T. McCallum
President and Chief Executive Officer
Great-West Life & Annuity Insurance Company
8515 E. Orchard Road

Englewood, Colorado 80111

(Name and Address of Agent for Service)

Copies of Communications to:
James F. Jorden, Esquire
Jorden Burt Boros Cicchetti Berenson & Johnson, LLP
1025 Thomas Jefferson St. N. W.
Suite 400 East
Washington, D. C. 20007-0805

It is proposed that this filing will become effective (check appropriate box)

immediately upon filing pursuant to paragraph (b) of Rule 485
X on May 1, 2000 pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(1) of Rule 485
on _____________________, pursuant to paragraph (a)(1) of Rule 485
75 days after filing pursuant to paragraph (a)(2) of Rule 485
on _____________________, pursuant to paragraph (a)(2) of Rule 485.

If appropriate, check the following:
this post-effective amendment designates a new effective date for a previously
filed post-effective amendment.

<PAGE>

Explanatory Note

This post-effective amendment no. 69, filed pursuant to paragraph (b) of Rule
485 under the Securities Act of 1933, as amended, does not effect, delete,
amend, or supersede any information contained in post-effective amendment no. 67
to the registration statement, which relates solely to the Maxim Vista Growth &
Income Portfolio.

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
Maxim Short-Term Maturity Bond Portfolio (formerly, Maxim Founders Blue Chip Portfolio)
Maxim U.S. Government Mortgage Maxim INVESCO Balanced Portfolio

Securities Portfolio
Maxim Global Bond Portfolio

Maxim Loomis Sayles Small-Cap Value Portfolio

Maxim Ariel MidCap Value Portfolio Maxim Ariel Small-Cap Value Portfolio
Maxim T. Rowe Price MidCap Growth Portfolio Maxim INVESCO Small-Cap Growth Portfolio

Aggressive Profile I Portfolio Maxim Stock Index Portfolio
Moderately Aggressive Profile I Portfolio Maxim Index 600 Portfolio

Moderate Profile I Portfolio Maxim Value Index Portfolio
Moderately Conservative Profile I Portfolio Maxim Growth Index Portfolio
Conservative Profile I Portfolio Maxim Index 400 Portfolio

Maxim Bond Index Portfolio (formerly, Maxim

Aggressive Profile II Portfolio Investment Grade Corporate Bond Portfolio)
Moderately Aggressive Profile II Portfolio Maxim Index Pacific Portfolio
Moderate Profile II Portfolio Maxim Index European Portfolio
Moderately Conservative Profile II Portfolio
Conservative Profile II Portfolio

</TABLE>

(the "Portfolios")

----------------
8515 East Orchard Road

Englewood, CO 80111

(800) 338 - 4015

This Prospectus describes thirty-five portfolios, twenty-two of which are
"Equity Portfolios," twelve of which are "Debt Portfolios" (including the Money
Market Portfolio) and one which 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 is a series of the Maxim Series Fund, Inc. (the "Fund"). Each
Portfolio operates as a separate mutual fund and has its own investment
objectives and strategies.

The Fund 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; rather
you must own a variable insurance contract or participate in a qualified
retirement plan that makes one or more of the Portfolios available for
investment.

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 Equity Index Portfolios
Maxim Profile 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
[OBJECT OMITTED]

<PAGE>

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:

7-Day Yield Effective Yield

Maxim Money Market 5.33% 5.47%
Portfolio

<PAGE>

MAXIM BOND PORTFOLIOS

Maxim Short-Term Maturity Bond Portfolio

The investment objective of this Portfolio is to:

o Seek maximum total return that is consistent with preservation of capital and
liquidity.

Principal investment strategies. This Portfolio will:

o Invest primarily in short-term investment grade bonds.

o Select securities based on relative value, maturity, quality and sector.

o Maintain an actively managed portfolio of debt securities selected from
several categories including:

o U.S. Treasuries and Agency securities;
o Commercial and residential mortgage-backed securities;
o Asset-backed securities; and
o Corporate bonds.

o Maintain a weighted average quality of A or higher.

o Maintain an average effective maturity of no greater than five (5) years.

o Invest up to 20% 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.

Non-Diversification Risk

o The Portfolio is classified as non-diversified which means a relatively high
percentage of its 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 than that experienced by a
diversified 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

During the periods shown in the chart for the Maxim Short-Term Maturity Bond
Portfolio, the highest return for a quarter was 2.74% (quarter ending September,
1998) and the lowest return for a quarter was 0.27% (quarter ending March,
1996).

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 Short-Term Maturity

Bond Portfolio 3.37% 5.35%
Lehman 1-3 Year
Government/Corporate Bond Index 3.15% 5.79%

The inception date for the Maxim Short-Term Maturity Bond Portfolio was August
1, 1995. The Lehman 1-3 Year Government/Corporate Bond Index is comprised of
short-average-life U.S. Government and agency bonds and investment-grade
corporate bonds.

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

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.

Portfolio Performance Data

Year-by-Year

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:

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%

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 U.S. Government Mortgage 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 mortgage related securities that have been 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.

The principal investment risks for this Portfolio include:

Interest Rate Risk

Non-Diversification Risk

o The Portfolio is classified as non-diversified which means a relatively high
percentage of its 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 securities may be more susceptible to
any single economic, political or regulatory event than that experienced by a
diversified 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

Year-by-Year

During the periods shown in the chart for the Maxim U.S. Government Mortgage
Securities Portfolio , the highest return for a quarter was 4.76% (quarter
ending June, 1995) and the lowest return for a quarter was -2.33% (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:

Since

One Year Five Years Inception

Maxim U.S. Government

Mortgage Securities 0.51% 7.11% 6.26%
Portfolio
Lehman Mortgage-Backed
Securities Index 1.86% 7.98% 6.46%
Lehman Aggregate Bond Index -0.82% 7.73% 6.56%

The inception date for the Maxim U.S. Government Mortgage Securities Portfolio
was December 1, 1992. The Lehman Mortgage-Backed Securities Index is comprised
of mortgage-backed securities issued by GNMA, FNMA, and FHLMC and includes 15
and 30 year mortgage pass-throughs and 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

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

Year-by-Year

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:

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 0.39% 7.10% 7.26%
Index
Lehman Intermediate
Corporate Bond Index 0.16% 7.77% 7.89%

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.

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

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, 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

Year-by-Year

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:

Since

One Year Five Years Inception

Maxim Loomis Sayles

Corporate Bond Portfolio 4.87% 11.93% 11.20%
Merrill Lynch Intermediate
Government/Corporate Index -2.05% 7.61% 7.47%

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

<PAGE>

Year-by-Year
[OBJECT OMITTED]

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:

Since

One Year Five Years Inception

Maxim Bond Index Portfolio -0.31% 6.54% 5.56%
Lehman Aggregate Bond Index -0.82% 7.73% 6.56%

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.

FOREIGN DEBT PORTFOLIO

Maxim Global Bond Portfolio (Sub-Adviser: Pareto Partners)

The investment objective of this Portfolio is to:

o Seek highest total return consistent with a reasonable degree of risk.

Principal investment strategies. This Portfolio will:

o Invest primarily in debt obligations of issuers located throughout the world.

o Ordinarily invest in at least three countries.

o Hold foreign currencies and attempt to profit from fluctuations in currency
exchange rates.

o Typically invest in developed countries, but may invest up to 35% of total
assets in emerging markets.

o Invest primarily in debt securities rated investment grade or the unrated
equivalent as determined by Pareto Partners.

o Invest up to 35% of its total assets in below investment grade debt
securities ("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 values 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 obligations to pay principal and/or interest.

o Junk bonds (debt securities rated below investment grade) are regarded as
predominantly 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.

Derivative Risk

o The Portfolio may invest some assets in derivative securities, such as
options and futures. This practice is used primarily to hedge the Portfolio
but may be used to increase returns; however, such practices sometimes may
reduce returns or increase volatility.

Non-Diversification Risk

o The Portfolio is classified as non-diversified which means a relatively high
percentage of its 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 securities may be more susceptible to
any economic, political or regulatory event than a diversified portfolio.

Foreign Risk

o In addition, emerging market countries generally have economic structures
that are less diverse and mature, and political systems that are less stable,
than those of developed countries.

o Emerging markets may be more volatile and less liquid than the markets of
more mature economies, and the securities of emerging markets issuers often
are subject to rapid and large changes in price; however, these markets may
provide higher rates of return to investors.

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

No performance history is available as the Portfolio has less than one year of
performance data.

<PAGE>

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

<PAGE>

Year-by-Year

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:

Since

One Year Five Years Inception

Maxim Ariel Small-Cap

Value Portfolio -5.80% 12.18% 10.01%
Russell 2000 Index 21.26% 13.08% 12.20%

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

Stock Market Risk

Issuer Risk

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

Year-by-Year

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:

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%

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

Stock Market Risk

Issuer Risk

Foreign Risk

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

Year-by-Year

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:

Since

One Year Five Years Inception

Maxim INVESCO Small-Cap

Growth Portfolio 80.78% 33.34% 32.32%
Russell 2000 Index 21.26% 13.08% 14.12%

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.

<PAGE>

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:

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

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

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

Year-by-Year

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:

Since

One Year Inception

Maxim T. Rowe Price

MidCap Growth Portfolio 24.60% 23.31%
S&P 400 MidCap Index 14.72% 20.60%

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 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

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

Year-by-Year

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:

Since

One Year Five Years Inception

Maxim Ariel MidCap Value 0.26% 15.22% 14.48%
Portfolio
Russell MidCap Index 18.23% 21.86% 17.50%

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.

<PAGE>

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

Stock Market Risk

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

Year-by-Year

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:

Since

One Year Five Years Inception

Maxim Templeton

International Equity 29.91% 10.39% 9.73%
Portfolio
MSCI EAFE Index 27.30% 13.20% 13.40%

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

Stock Market Risk

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

Year-by-Year

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).

<PAGE>

The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:

Since

One Year Five Years Inception

Maxim INVESCO ADR Portfolio 22.67% 16.31% 15.48%
MSCI EAFE Index 27.30% 13.20% 11.77%

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.

<PAGE>

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

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

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

Year-by-Year

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:

Since

One Year Inception

Maxim Founders Growth & Income 15.04% 14.36%
Portfolio
S&P 500 Index 21.04% 24.21%
Lipper Growth & Income Index 11.86% 37.98%

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

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

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

Year-by-Year

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:

Since

One Year Five Inception
Years

Maxim T. Rowe Price

Equity/Income Portfolio 3.39% 18.24% 17.29%
S&P 500 Index 21.04% 28.56% 26.94%

The inception date for the Maxim T. Rowe Price Equity/Income Portfolio was
November 1, 1994. The S&P 500 Index is comprised of the stocks that make up the
S&P 500 that trade on the NYSE, the AMEX, or in NASDAQ over-the-counter market.
It is generally acknowledged that the S&P 500 broadly represents the performance
of publicly traded common stocks in the United States.

Maxim INVESCO Balanced Portfolio (Sub-Adviser: INVESCO Funds Group, Inc.)

The investment objective of this Portfolio is to:

o Seek high total return through capital appreciation and current income.

Principal investment strategies. This Portfolio will:

o Invest normally 50% to 70% of its assets in common stocks.

o Invest at least 25% of its assets in debt securities issued by the U.S.
Government, its agencies and instrumentalities, or in investment grade
corporate bonds.

o In selecting equity securities, the Portfolio will:

o seek to identify companies with better-than-average earnings growth potential

o seek to identify companies within industries identified as well-positioned for
the current and expected economic climate

o consider dividend payout records

o seek to identify companies traded on national stock exchanges or in the
over-the counter markets; however, securities traded on regional or foreign
exchanges may also be included.

o Invest up to 25% of total assets in foreign securities; however, securities of
Canadian issuers and American Depository Receipts ("ADRs") are not subject to
this 25% limitation.

The principal investment risks for this Portfolio include:

Stock Market Risk

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

Interest Rate Risk

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

Year-by-Year

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 16.74% 20.30%
Portfolio
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.

<PAGE>

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 Index 400 Portfolio S&P 400 MidCap Index

Maxim Growth Index Portfolio S&P/BARRA Growth Index

Maxim Value Index Portfolio S&P/BARRA Value Index

Maxim Index Pacific Portfolio FTSE World (Pacific)Index

Maxim Index European Portfolio FTSE World (European) Index

</TABLE>

S&P, BARRA and FTSE 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

Issuer Risk

o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than the
value of the market as a whole.

Derivative Risk

o When using futures contracts on market indexes and options on the futures
contracts, there is a risk that the change in value of the securities
included on the index and the price of a futures contract will not match.
There is also a risk that the 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.

The Maxim Index European and Maxim Index Pacific Portfolios have the following
additional principal investment risks:

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 Portfolios to
greater risk of potential loss than U.S. securities.

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

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:

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%

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

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:

Since

One Year Five Years Inception

Maxim Index 600 Portfolio 11.85% 14.16% 10.84%
S&P 600 Index 12.40% 17.04% 12.50%

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

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:

Since

One Year Five Years Inception

Maxim Value Index Portfolio 11.39% 23.05% 18.36%
S&P/BARRA Value Index 12.72% 22.94% 15.66%

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.

<PAGE>

Maxim Growth Index Portfolio

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:

Since

One Year Five Years Inception

Maxim Growth Index Portfolio 26.87% 30.04% 24.65%
S&P/BARRA Growth Index 28.25% 33.64% 25.77%

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 Index 400, Maxim Index European and Maxim Index Pacific

Portfolio Performance Data

No performance history is available for these Portfolios as Portfolio has less
than one year of performance data.

<PAGE>

MAXIM PROFILE PORTFOLIOS

There are ten separate Maxim Profile Portfolios, consisting of five Profile I
Portfolios and five Profile II Portfolios (collectively, the "Profile
Portfolios"). Each Profile 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 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 Portfolio is to:

Aggressive Profile

o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios that emphasize equity investments.

Moderately Aggressive Profile

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

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

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

o Seek capital preservation primarily through investments in Underlying
Portfolios that emphasize fixed income investments.

The principal investment strategies for each Profile 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 Portfolio according to its emphasis
on income, growth of capital and risk of principal:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Profile 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 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.

<PAGE>

The following chart describes the asset allocation ranges for each Profile
Portfolio:

==============================================================================
Asset Class ConservativeModerately Moderate Moderately Aggressive
Conservative Aggressive

-------------------------------------------------------------------------
E International 0-10% 5-25% 5-25% 10-30% 15-35%

-------------------------------------------------------------------------
U Small-Cap 0-10% 0-10% 0-20% 0-20% 10-30%

-------------------------------------------------------------------------
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%

-------------------------------------------------------------------------
B Short-Term Bond 25-45% 10-30% 5-25% 0-10% 0-10%

==============================================================================

GW Capital Management, the investment adviser, uses a proprietary investment
process for selecting the Underlying Portfolios in which the Profile 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 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 II
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 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
Portfolios may invest. While the Profile 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 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 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

</TABLE>

<PAGE>

Large-Cap Equity Small-Cap Equity
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

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 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

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

One Year Inception

Maxim Aggressive Profile I 21.83% 17.10%
Portfolio
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

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

One Year Inception

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

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

One Year Inception

Maxim Moderate Profile I 16.43% 13.03%
Portfolio
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
[OBJECT OMITTED]

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

One Year Inception

Maxim Moderately

Conservative Profile I 8.34% 8.75%
Portfolio
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

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

One Year Inception

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.

Portfolio Performance Data for the Profile II Portfolios

No performance data is available for the Profile II Portfolios as these
Portfolios have less than one year of performance.

<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)

Sales Load Imposed on
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
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 Maxim Maxim Maxim Maxim
Money Bond U.S. Short-Term U.S. Loomis Templeton
Market Gov't. Maturity Gov't. Sayles International
Securities Bond Mortgage Corporate Equity
Securities Bond

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Management Fees 0.46% 0.60% 0.60% 0.60% 0.60% 0.90% 1.00%
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Distribution NONE NONE NONE NONE NONE NONE NONE
(12b-1) Fees

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Other Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.23%

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Total Annual

Portfolio 0.46% 0.60% 0.60% 0.60% 0.60% 0.90% 1.23%
Operating Expenses

- -----------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------
Maxim Maxim Maxim Maxim T. Maxim Maxim T.
INVESCO Founders INVESCO Rowe Ariel Rowe Price
ADR Growth & Balanced Price MidCap MidCap
Income Equity/ Value Growth
Income

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Management Fees 1.00% 1.00% 1.00% 0.80% 0.95% 1.00%
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Distribution NONE NONE NONE NONE NONE NONE
(12b-1) Fees

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Other Expenses 0.14% 0.11% 0.00% 0.08% 0.09% 0.05%

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Total Annual

Portfolio 1.14% 1.11% 1.00% 0.88% 1.04% 1.05%
Operating Expenses

- -----------------------------------------------------------------------------------------

Maxim Maxim Maxim Maxim Maxim Maxim Index
Bond Global Index Growth Value Pacific
Index++ Bond 400 Index Index

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Management Fees 0.50% 1.30% 0.60% 0.60% 0.60% 1.00%

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Other Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.20%

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Total Annual

Portfolio 0.50% 1.30% 0.60% 0.60% 0.60% 1.20%
Operating Expenses

- -----------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------
Maxim Maxim Maxim Maxim Maxim Maxim
Ariel INVESCO Loomis Stock Index Index
Small-Cap Small-Cap Sayles Index 600 European
Value Growth Small-Cap
Value

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Management Fees 1.00% 0.95% 1.00% 0.60% 0.60% 1.00%
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Distribution NONE NONE NONE NONE NONE NONE
(12b-1) Fees

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Other Expenses 0.23% 0.12% 0.14% 0.00% 0.00% 0.20%

- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------

Total Annual

Portfolio 1.23% 1.07% 1.14% 0.60% 0.60% 1.20%
Operating Expenses

- -----------------------------------------------------------------------------------------

</TABLE>

- -----------------------------------------------------------------------------
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 NONE NONE NONE NONE NONE
(12b-1) Fees

- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Other Expenses 0.00% 0.00% 0.00% 0.00% 0.00%
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Total Annual

Portfolio 0.25%** 0.25%** 0.25%** 0.25%** 0.25%**
Operating Expenses
- -----------------------------------------------------------------------------

- -----------------------------------------------------------------------------
Maxim Maxim Maxim Maxim Maxim
Aggressive Moderately Moderate Moderately Conservative
Profile II Aggressive Profile Conservative Profile II
Profile II II Profile II
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Management Fees 0.10% 0.10% 0.10% 0.10% 0.10%
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Distribution NONE NONE NONE NONE NONE
(12b-1) Fees

- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Other Expenses 0.00% 0.00% 0.00% 0.00% 0.00%
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Total Annual

Portfolio 0.10%** 0.10%** 0.10%** 0.10%** 0.10%**
Operating Expenses
- -----------------------------------------------------------------------------

++ 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 and Profile II Portfolio (collectively, "Profile
Portfolios") will invest in shares of Underlying Portfolios. Therefore, each
Profile 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 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
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%; Maxim Aggressive
Profile II - 0.60% to 1.38%; Maxim Moderately Aggressive Profile II - 0.60% to
1.38%; Maxim Moderate Profile II - 0.60% to 1.38%; Maxim Moderately Conservative
Profile II - 0.60% to 1.23%; Maxim Conservative Profile II - 0.60% to 1.23%.
This information is provided as a range since the average assets of each Profile
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.

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 U.S. Government Mortgage $62 $194 $340 $774
Securities
Maxim Short-Term Maturity Bond $62 $194 $340 $774
Maxim Loomis Sayles Corporate Bond $92 $291 $510 $1,160
Maxim Global Bond $133 $420 $736 $1.676
Maxim Templeton International $126 $397 $697 $1,586
Equity
Maxim INVESCO ADR $117 $368 $646 $1,470
Maxim Index European $123 $388 $680 $1,547
Maxim Index Pacific $123 $388 $680 $1,547
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 Index 400 $62 $194 $340 $774
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 $117 $368 $646 $1,470
Value
Maxim Index 600 $62 $194 $340 $774
Maxim Aggressive Profile I $26 $81 $141 $322
Maxim Moderately Aggressive $26 $81 $141 $322
Profile I

Maxim Moderate Profile I $26 $81 $141 $322
Maxim Moderately Conservative $26 $81 $141 $322
Profile I

Maxim Conservative Profile I $26 $81 $141 $322
Maxim Aggressive Profile II $10 $32 $57 $129
Maxim Moderately Aggressive $10 $32 $57 $129
Profile II

Maxim Moderate Profile II $10 $32 $57 $129
Maxim Moderately Conservative $10 $32 $57 $129
Profile II

Maxim Conservative Profile II $10 $32 $57 $129

* 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. Twenty-two
Portfolios are considered to be "Equity Portfolios" because they invest
primarily in equity securities (mostly common stocks). Twelve 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:

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 Maxim Index
400 Portfolio o Maxim Index European Portfolio o Maxim Index Pacific
Portfolio o Aggressive Profile I Portfolio o Aggressive Profile II
Portfolio o Moderate Profile I Portfolio o Moderate Profile II Portfolio o
Moderately Aggressive Profile I Portfolio o Moderately Aggressive Profile
II

Portfolio

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, Maxim INVESCO ADR, Maxim Index Pacific and Maxim Index European
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, Moderate Profile I,
Aggressive Profile II, Moderately Aggressive Profile II and Moderate Profile II
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 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 400 MidCap Index (the "S&P 400") is a widely recognized, unmanaged
market capitalization weighted index of 400 stocks representing the mid-range in
terms of tradable market value of the U.S. equity market.

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," "S&P 500/BARRA Value Index," and "S&P 400 MidCap
Index" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed
for use by the Company. Maxim Series Fund is not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in Maxim Series Fund.

The FTSE World (Pacific) Index (the "FTSE Pacific Index") and the FTSE World
(European) Index (the "FTSE European Index") are unmanaged, market-value
weighted indices of equity securities traded on the stock exchanges of the
countries represented in the respective indices. They are designed to represent
the performance of stocks in the large-cap sector of the markets from the
countries included in the European and Pacific Rim regions of the world. FTSE is
a trade mark of London Stock Exchange Limited ("Exchange") and The Financial
Times Limited ("Financial Times") and is used by FTSE under license. All rights
in the index values and constituent lists vests in FTSE International Limited.
We have obtained full licenses from FTSE International Limited to use such
rights in the creation of the Maxim Index European and Maxim Index Pacific
Portfolios. Neither FTSE nor the Exchange nor Financial Times makes any warranty
or representation whatsoever expressly or implied either as to the results to be
obtained from the use of the FTSE Pacific Index or the FTSE European Index
and/or the figure at which these Indexes stand at any particular time on any
particular day or otherwise. The Indexes are compiled and calculated by FTSE;
however, neither FTSE nor the Exchange nor Financial Times shall be liable
(whether in negligence or otherwise) to any person for any error in the Indexes
and neither FTSE nor the Exchange nor Financial Times shall be liable under any
obligation to advise any person of the error therein.

The S&P 500, S&P 600, S&P 400, Growth Index and Value Index are sponsored by
Standard & Poor's, which is responsible for determining which stocks are
represented on the indices.

The FT/S&P Pacific Index and the FT/S&P European Index are sponsored by the
Financial Times-Stock Exchange International; Standard & Poor's; Goldman, Sachs
and Company; Nat West Securities, Ltd. Each of these entities has voting rights
on a committee that is responsible for determining the composition of the stocks
comprising 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, Value Index,
FT/S&P Pacific and FT/S&P European Indices 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 Short-Term Maturity Bond
Portfolio
o Maxim Global Bond Portfolio o Maxim U.S. Gov't. Mortgage
Securities Portfolio
o Maxim Bond Index Portfolio o Moderately Conservative Profile I
Portfolio

o Conservative Profile I Portfolio o Moderately Conservative Profile II
Portfolio

o Conservative Profile II 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 Global Bond, Maxim T. Rowe Price
Equity/Income, Maxim Short-Term Maturity Bond, Moderately Conservative Profile
I, Conservative Profile I, Moderately Conservative Profile II and Conservative
Profile II Portfolios.

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 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
.

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

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, Maxim Index Pacific, Maxim Index
European, Maxim Global Bond 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, Maxim Index Pacific, Maxim
Index European, Maxim Global Bond 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:

Portfolio Percentage of Average Net Assets
--------- --------------------------------
Maxim Money Market 0.46%
Maxim Bond 0.60%
Maxim U.S. Government Securities 0.60%
Maxim U.S. Government Mortgage Securities 0.60%
Maxim Loomis Sayles Corporate Bond 0.90%
Maxim Short-Term Maturity Bond 0.60%
Maxim Global Bond 1.30%
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 Index 400 0.60%
Maxim Value Index 0.60%
Maxim Growth Index 0.60%
Maxim Bond Index** 0.50%
Maxim Index European 1.00%
Maxim Index Pacific 1.00%
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%
Aggressive Profile II 0.10%
Moderately Aggressive Profile II 0.10%
Moderate Profile II 0.10%
Moderately Conservative II 0.10%
Conservative Profile II 0.10%

* 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 Short-Term Maturity Bond, Maxim U.S. Government
Securities, Maxim U.S. Government Mortgage Securities, Maxim Stock Index, Maxim
Index 600, Maxim Index 400, Maxim Index European, Maxim Index Pacific, 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.

Loomis Sayles & Company, L.P Templeton Investment Counsel, Inc.
Maxim Looms Sayles Corporate Bond Maxim Templeton International
Portfolio Equity Portfolio
Maxim Loomis Sayles Small-Cap Value
Portfolio

Founders Asset Management LLC Pareto Partners

Maxim Founders Growth & Income Maxim Global Bond Portfolio
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 Maxim INVESCO ADR Portfolio
Portfolio
Maxim INVESCO Balanced Portfolio

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
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.

Pareto Partners ("Pareto") an English Partnership, serves as the sub-adviser to
the Maxim Global Bond Portfolio. Mellon Bank, N.A. owns 30% of Pareto, XL
Capital Ltd. owns 30% of Pareto and the employees of Pareto own the remaining
40% of Pareto. Mellon Bank, N.A. is a wholly-owned subsidiary of Mellon Bank
Corporation, a publicly-owned multibank holding company which provides a
comprehensive range of financial products and services in domestic and selected
international markets.

The Portfolio, which is patterned after the Dreyfus Global Bond Fund managed by
Christine V. Downton, is also managed by Ms. Downton. She is a partner and the
Chief Investment Officer of Pareto and has been employed by Pareto since April
1991. Mellon Bank, N.A. owns 100% of The Dreyfus Corporation and, thus, Pareto
is affiliated with Dreyfus through Mellon Bank.

IMPORTANT INFORMATION ABOUT YOUR INVESTMENT

Investing in the Portfolios

Shares of the Portfolios are not for sale directly to the public. Currently, the
Portfolios' shares are sold only to separate accounts of Great-West Life &
Annuity Insurance Company and New England Life Insurance Company to fund
benefits under certain variable annuity contracts, variable life insurance
policies and to participants in connection with qualified retirement plans. In
the future, shares of the Portfolios may be used to fund other variable
contracts offered by Great-West, or its affiliates, or other unrelated insurance
companies. For information concerning your rights under a specific variable
contract, please refer to the applicable prospectus and/or disclosure documents
for that contract.

Purchasing and Redeeming Shares

Variable contract owners or Qualified Plan participants will not deal directly
with the Fund regarding the purchase or redemption of a Portfolio's shares.
Insurance company separate accounts place orders to purchase and redeem shares
of each Portfolio based on allocation instructions received from variable
contract owners. Similarly, Qualified Plan sponsors and administrators purchase
and redeem Portfolio shares based on orders received from participants.
Qualified Plan participants cannot contact the Fund directly to purchase shares
of the Portfolios but may invest in shares of the Portfolios only through their
Qualified Plan. Participants should contact their Qualified Plan sponsor or
administrator for information concerning the appropriate procedure for investing
in the Fund.

Due to differences in tax treatment or other considerations, material
irreconcilable conflicts may arise between the interests of variable annuity
contract owners, variable life insurance policy owners and Qualified Plans that
invest in the Fund. The Board of Directors will monitor each Portfolio for any
material conflicts that may arise and will determine what action should be
taken.

How to Exchange Shares

This section is only applicable to participants in Qualified Plans that purchase
shares of the Fund outside a variable annuity contract.

An exchange involves selling all or a portion of the shares of one Portfolio and
purchasing shares of another Portfolio. There are no sales charges or
distribution fees for an exchange. The exchange will occur at the next net asset
value calculated for the two Portfolios after the exchange request is received
in proper form. Before exchanging into a Portfolio, read its prospectus.

Please note the following policies governing exchanges:

o You can request an exchange in writing or by telephone.
o Written requests should be submitted to:
8505 East Orchard Road, 401(k) Operations Department
Englewood, CO 80111.
o The form should be signed by the account owner(s) and include the following
information:

(1) the name of the account
(2) the account number
(3) the name of the Portfolio from which the shares of which are to be sold (4)
the dollar amount or number of shares to be exchanged (5) the name of the
Portfolio(s) in which new shares will be purchased; and (6) the signature(s) of
the person(s) authorized to effect exchanges in the account. o You can request
an exchange by telephoning 1-800-338-4015. o A Portfolio may refuse exchange
purchases by any person or group if, in GW Capital

Management's judgment, the Portfolio would be unable to invest the money
effectively in accordance with its investment objective and policies, or
would otherwise potentially be adversely affected.

Other Information

o We may modify, suspend or terminate at any time the policies and procedures
to request an exchange of shares of the Portfolios by telephone.

o If an account has more than one owner of record, we may rely on the
instructions of any one owner.

o Each account owner has telephone transaction privileges unless we receive
cancellation instructions from an account owner.

o We will not be responsible for losses or expenses arising from unauthorized
telephone transactions, as long as we use reasonable procedures to verify the
identity of the investor, such as requesting personal identification numbers
(PINs) and other information.

o All telephone calls will be recorded and we have adopted other procedures to
confirm that telephone instructions are genuine.

During periods of unusual market activity, severe weather, or other unusual,
extreme, or emergency conditions, you may not be able to complete a telephone
transaction and should consider placing your order by mail.

Share Price

The transaction price for buying, selling, or exchanging a Portfolio's shares is
the net asset value of that Portfolio. Each Portfolio's net asset value is
generally calculated as of the close of trading on the New York Stock Exchange
("NYSE") every day the NYSE is open (generally 4:00 p.m. Eastern Time). If the
NYSE closes at any other time, or if an emergency exists, the time at which the
NAV is calculated may differ. To the extent that a Portfolio's assets are traded
in other markets on days when the NYSE is closed, the value of the Portfolio's
assets may be affected on days when the Fund is not open for business. In
addition, trading in some of a Portfolio's assets may not occur on days when the
Fund is open for business. Your share price will be the next net asset value
calculated after we receive your order in good form.

The net asset value of the Maxim Money Market Portfolio is determined by using
the amortized cost method of valuation. Net asset value is based on the market
value of the securities in the Portfolio. Short-term securities with a maturity
of 60 days or less are valued on the basis of amortized cost. If market prices
are not available or if a security's value has been materially affected by
events occurring after the close of the exchange or market on which the security
is principally traded (for example, a foreign exchange or market) , that
security may be valued by another method that the Board of Directors of the Fund
believes accurately reflects fair value.

We determine net asset value by dividing net assets of the Portfolio (the value
of its investments, cash, and other assets minus its liabilities) by the number
of the Portfolio's outstanding shares.

Dividends and Capital Gains Distributions

Each Portfolio earns dividends, interest and other income from its investments,
and distributes this income (less expenses) to shareholders as dividends. Each
Portfolio also realizes capital gains from its investments, and distributes
these gains (less any losses) to shareholders as capital gains distributions.

o The Maxim Money Market Portfolio ordinarily declares dividends from net
investment income daily and distributes dividends monthly.

o The Maxim Bond, Maxim Bond Index, Maxim U.S. Government Mortgage Securities,
Maxim U.S. Government Securities and Maxim Short-Term Maturity Bond 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 Index 400, Maxim Global Bond, Maxim Loomis Sayles Corporate
Bond and all Profile Portfolios ordinarily distribute dividends semi-annually.

o The Maxim Templeton International Equity, Maxim INVESCO ADR, Maxim Index
European and Maxim Index Pacific 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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.0005 $ 1.0007 $ 1.0007 $ 1.0007 $ 1.0007
of Period

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 0.0471 0.0503 0.0512 0.0493 0.0555
Operations

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 $ 1.0005 $ 1.0005 $ 1.0007 $ 1.0007 $ 1.0007
Period

Total Return/Yield 4.81% 5.15% 5.24% 5.04% 5.62%

Net Assets, End of Period $ 722,697,25$ 619,416,6$4453,155,21$ 396,453,1$8277,257,289

Ratio of Expenses to Average 0.46% 0.46% 0.46% 0.46% 0.46%
Net Assets

Ratio of Net Investment
Income to

Average Net Assets 4.73% 5.05% 5.14% 4.99% 5.55%

</TABLE>

<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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.2169 $ 1.2119 $ 1.2059 $ 1.2301 $ 1.1352
of Period

Income from Investment
Operations

Net investment income 0.0718 0.0740 0.0767 0.0745 0.0736
Net realized and unrealized (0.0753) 0.0050 0.0060 (0.0242) 0.0949
gain (loss)

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 $ 1.1421 $ 1.2169 $ 1.2119 $ 1.2059 $ 1.2301
Period

Total Return (0.27%) 6.65% 7.07% 4.26% 15.21%

Net Assets, End of Period $ 70,255,64$ 76,099,882$ 70,283,703$ 78,093,10$ 80,025,099

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.60%
Net Assets

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%

</TABLE>

<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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 3.5821 $ 2.9474 $ 2.3650 $ 1.9796 $ 1.4978
of Period

Income from Investment
Operations

Net investment income 0.0272 0.0283 0.0364 0.0336 0.0334
Net realized and unrealized 0.6682 0.7538 0.7196 0.3960 0.4963
gain

Total Income From Investment 0.6954 0.7821 0.7560 0.4296 0.5297
Operations

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 $ 4.0444 $ 3.5821 $ 2.9474 $ 2.3650 $ 1.9796
Period

Total Return 19.73% 26.79% 32.20% 21.81% 35.60%

Net Assets, End of Period $ 1,166,072,1$21,029,722,$7817,386,56$ 936,806,3$8707,459,637

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.60%
Net Assets

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%

</TABLE>

<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
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning of $ 1.1049 $ 1.0918 $ 1.0738 $ 1.1001 $ 1.0138
Period

Income from Investment
Operations

Net investment income 0.0630 0.0646 0.0707 0.0675 0.0723
Net realized and unrealized (0.0600) 0.0126 0.0180 (0.0263) 0.0863
gain (loss)

Total Income From Investment 0.0030 0.0772 0.0887 0.0412 0.1586
Operations

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$ 78,875,12$ 58,311,917$ 64,077,863$ 62,473,959

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.60%
Net Assets

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%

</TABLE>

<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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.3010 $ 1.2856 $ 1.2774 $ 1.3161 $ 1.2019
of Period

Income from Investment
Operations

Net investment income 0.0695 0.0737 0.0769 0.0777 0.0794
Net realized and unrealized (0.0736) 0.0154 0.0081 (0.0387) 0.1164
gain (loss)

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 $ 1.2276 $ 1.3010 $ 1.2856 $ 1.2774 $ 1.3161
Period

Total Return (0.31%) 7.08% 6.85% 3.14% 16.71%

Net Assets, End of Period $ 133,484,68$ 130,436,89$ 114,875,9$0100,722,15$ 95,210,404

Ratio of Expenses to Average 0.56% 0.60% 0.60% 0.60% 0.60%
Net Assets

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%

</TABLE>

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM U.S. GOVERNMENT MORTGAGE 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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.1863 $ 1.1743 $ 1.1519 $ 1.1786 $ 1.0917
of Period

Income from Investment
Operations

Net investment income 0.0676 0.0700 0.0745 0.0751 0.0781
Net realized and unrealized (0.0619) 0.0118 0.0224 (0.0267) 0.0869
gain (loss)

Total Income From Investment 0.0057 0.0818 0.0969 0.0484 0.1650
Operations

Less Distributions

From net investment income (0.0670) (0.0698) (0.0745) (0.0751) (0.0781)

Total Distributions (0.0670) (0.0698) (0.0745) (0.0751) (0.0781)

Net Asset Value, End of $ 1.1250 $ 1.1863 $ 1.1743 $ 1.1519 $ 1.1786
Period

Total Return 0.51% 7.12% 8.64% 4.29% 15.55%

Net Assets, End of Period $ 183,177,60$ 192,302,27$ 162,184,38$ 138,465,90$ 129,549,680

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.60%
Net Assets

Ratio of Net Investment
Income to

Average Net Assets 5.86% 5.98% 6.44% 6.51% 6.84%

Portfolio Turnover Rate 46.74% 108.19% 34.01% 94.63% 188.04%

</TABLE>

<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
<TABLE>

<S> <C>
31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning of 0.7921 $ 1.2588 $ 1.2370 $ 1.1680 $ 0.9540 $
Period

Income from Investment Operations

Net investment income 0.0049 0.0069 0.0081 0.0124 0.0102
Net realized and unrealized gain 0.0809 (0.0532) 0.2419 0.1659 0.2393
(loss)

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% 21.00% 15.30% 26.24%
(1.58%)

Net Assets, End of Period 25,168,640$ 23,618,62$ 121,454,80$ 80,783,69$ 51,610,284

Ratio of Expenses to Average Net 0.60% 0.60% 0.60% 0.60% 0.60%
Assets

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%

</TABLE>

<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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.1874 $ 1.2786 $ 1.3229 $ 1.1395 $ 1.0673
of Period

Income from Investment
Operations

Net investment income 0.0155 0.0270 0.0205 0.0136 0.0190
Net realized and unrealized 0.3391 (0.0911) 0.0053 0.2087 0.0756
gain (loss)

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 $ 1.5189 $ 1.1874 $ 1.2786 $ 1.3229 $ 1.1395
Period

Total Return 29.91% 1.99% 19.59% 8.93%
(5.00%)

Net Assets, End of Period $ 101,354,18$ 120,381,64$ 132,774,51$ 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%

</TABLE>

# 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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999* 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.8417 $ 1.5532 $ 1.4327 $ 1.3538 $ 1.1003
of Period

Income from Investment
Operations

Net investment income (loss) 0.0115 (0.0092) (0.0437) (0.0083) 0.0018
Net realized and unrealized 0.0029 0.5058 0.2257 0.0890 0.2893
gain

Total Income From Investment 0.0144 0.4966 0.1820 0.0807 0.2911
Operations

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 $ 1.5412 $ 1.8417 $ 1.5532 $ 1.4327 $ 1.3538
Period

Total Return 0.26% 33.77% 12.95% 5.96% 26.50%

Net Assets, End of Period $ 67,498,788$ 317,547,94$ 233,939,91$ 214,710,80$ 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%

</TABLE>

*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
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.8953 $ 1.8136 $ 1.4538 $ 1.2623 $ 0.9614
of Period

Income from Investment
Operations

Net investment income 0.0243 0.0279 0.0278 0.0298 0.0305
Net realized and unrealized 0.1779 0.2301 0.4631 0.2287 0.3198
gain

Total Income From Investment 0.2022 0.2580 0.4909 0.2585 0.3503
Operations

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 $ 1.8042 $ 1.8953 $ 1.8136 $ 1.4538 $ 1.2623
Period

Total Return 11.39% 14.48% 34.08% 20.63% 36.80%

Net Assets, End of Period $ 391,562,37$ 326,339,49$ 237,421,80$ 122,283,026$ 65,183,898

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.60%
Net Assets

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%

</TABLE>

<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
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 2.4276 $ 1.8507 $ 1.4852 1.3459 $ 1.0120
of Period

Income from Investment
Operations

Net investment income 0.0061 0.0070 0.0085 0.0114 0.0127
Net realized and unrealized 0.6347 0.6769 0.4241 0.2851 0.3432
gain

Total Income From Investment 0.6408 0.6839 0.4326 0.2965 0.3559
Operations

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 $ 2.8634 $ 2.4276 $ 1.8507 1.4852 $ 1.3459
Period

Total Return 26.87% 37.28% 29.26% 22.10% 35.29%

Net Assets, End of Period $ 499,612,22$ 297,170,22$ 162,975,76083,743,210$ 43,515,299

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.60%
Net Assets

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%

</TABLE>

<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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning of $ 0.9538 $ 0.9154 $ 1.2480 $ 1.0669 $ 0.9974
Period

Income from Investment
Operations

Net investment income 0.0019 0.0022 0.0067 0.0095 0.0286
Net realized and unrealized (0.0631) 0.0721 0.3223 0.1811 0.1234
gain (loss)

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$ 36,599,65$ 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 $ 1.4482 $ 1.5316 $ 1.4028 $ 1.1605 0.9755 $
Period

Income from Investment
Operations

Net investment income 0.0079 0.0139 0.0103 0.0091 0.0075
Net realized and unrealized (0.0219) (0.0492) 0.3273 0.3376 0.2840
gain (loss)

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$ 127,807,36$ 183,322,63$ 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.

</TABLE>

<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:

<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.1118 $ 1.1981 $ 1.1618 $ 1.1521 $ 0.9716
of Period

Income from Investment
Operations

Net investment income 0.0873 0.0838 0.0764 0.0825 0.0842
Net realized and unrealized (0.0344) (0.0429) 0.0689 0.0324 0.1994
gain (loss)

Total Income From Investment 0.0529 0.0409 0.1453 0.1149 0.2836
Operations

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 $ 1.0643 $ 1.1118 $ 1.1981 $ 1.1618 $ 1.1521
Period

Total Return 4.87% 3.43% 12.70% 10.35% 30.19%

Net Assets, End of Period $ 191,419,34$ 199,386,03$ 158,884,38$ 83,645,029$ 45,530,190

Ratio of Expenses to Average 0.90% 0.90% 0.90% 0.90% 0.90%
Net Assets

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%

</TABLE>

<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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.7804 $ 1.7602 $ 1.4492 $ 1.2633 $ 0.9805
of Period

Income from Investment
Operations

Net investment income 0.0339 0.0370 0.0357 0.0299 0.0345
Net realized and unrealized 0.0242 0.1177 0.3783 0.2130 0.2892
gain

Total Income From Investment 0.0581 0.1547 0.4140 0.2429 0.3237
Operations

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 $ 1.6554 $ 1.7804 $ 1.7602 $ 1.4492 $ 1.2633
Period

Total Return 3.39% 8.93% 28.82% 19.39% 33.42%

Net Assets, End of Period $ 189,499,60$ 209,702,72$ 167,154,16$ 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%

</TABLE>

# 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:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Year Ended December

31,

1999 1998 1997 1996 1995

Net Asset Value, Beginning $ 1.8506 $ 1.5955 $ 1.4330 1.2734 $ 1.0054
of Period

Income from Investment
Operations

Net investment income (loss) (0.0038) (0.0048) 0.0009 0.0024 0.0069
Net realized and unrealized 1.4263 0.2842 0.2612 0.3380 0.3118
gain

Total Income From Investment 1.4225 0.2794 0.2621 0.3404 0.3187
Operations

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 $ 2.8345 $ 1.8506 $ 1.5955 1.4330 $ 1.2734 $
Period

Total Return 80.78% 17.62% 18.70% 26.73% 31.79%

Net Assets, End of Period $ 181,228,67$ 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%)
(0.08%) (0.11%) (0.62%)
- - 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 $ 1.6252 $ 1.4804 $ 1.3508 $ 1.1255 $ 0.9859
Period

Income from Investment
Operations

Net investment income 0.0061 0.0123 0.0114 0.0112 0.0120
Net realized and unrealized 0.3614 0.1453 0.1512 0.2266 0.1396
gain

Total Income From Investment 0.3675 0.1576 0.1626 0.2378 0.1516
Operations

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 $ 141,769,98$ 28,296,279$ 16,581,35$ 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.

</TABLE>

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM SHORT-TERM MATURITY BOND PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997 and 1996, and the period ended December 31, 1995
are as follows:
<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Period Ended

December 31,

1999 1998 1997 1996 1995
(A)

Net Asset Value, Beginning $ 1.0204 $ 1.0134 $ 1.0065 $ 1.0092 $ 1.0000
of Period

Income from Investment
Operations

Net investment income 0.0520 0.0546 0.0534 0.0489 0.0194
Net realized and unrealized (0.0183) 0.0087 0.0070 (0.0027) 0.0105
gain (loss)

Total Income From Investment 0.0337 0.0633 0.0604 0.0462 0.0299
Operations

Less Distributions

From net investment income (0.0517) (0.0543) (0.0534) (0.0489) (0.0207)
From net realized gains (0.0003) (0.0020) (0.0001)

Total Distributions (0.0520) (0.0563) (0.0535) (0.0489) (0.0207)

Net Asset Value, End of $ 1.0021 $ 1.0204 $ 1.0134 $ 1.0065 $ 1.0092
Period

Total Return 3.37% 6.36% 6.14% 4.70% 3.02%

Net Assets, End of Period $ 137,920,472$ 110,917,0$178,367,54$ 39,503,114$ 15,618,670

Ratio of Expenses to Average 0.60% 0.60% 0.60% 0.60% 0.53%*
Net Assets

Ratio of Net Investment
Income to

Average Net Assets 5.29% 5.45% 5.47% 5.15% 4.61%*

Portfolio Turnover Rate 45.60% 37.33% 84.59% 51.71% 97.87%

*Annualized

(A) The portfolio commenced operations on August 1, 1995.

<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 $ 1.4608 $ 1.2588 $ 1.0408 $ 1.0000
Period

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 0.2357 0.2309 0.2705 0.0472
Operations

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 1.00% 1.00% 1.00% 1.00%*
Assets

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.

</TABLE>

<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:
<TABLE>

<S> <C>
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%
</TABLE>

*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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

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 0.1637 0.1812 0.0317
Operations

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%

</TABLE>

*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 INDEX EUROPEAN PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 10.0000

Income from Investment Operations

Net investment loss (0.0005)
Net realized and unrealized gain 1.8445

Total Income From Investment Operations 1.8440

Less Distributions

From net realized gains (0.0249)

Total Distributions (0.0249)

Net Asset Value, End of Period $ 11.8191

Total Return 18.44%

Net Assets, End of Period $ 147,309,943

Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.39% *
- - After Reimbursement # 1.20% *

Ratio of Net Investment Loss to Average Net Assets:
- - Before Reimbursement (0.31%) *
- - After Reimbursement # (0.12%) *

Portfolio Turnover Rate 19.79%

*Annualized

# Percentages are shown net of expenses reimbursed by GW Capital Management,
LLC.

(A) The portfolio commenced operations on July 26, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM INDEX PACIFIC PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 10.0000

Income from Investment Operations

Net investment loss (0.0004)
Net realized and unrealized gain 3.8172

Total Income From Investment Operations 3.8168

Less Distributions

From net investment income (0.0043)
From net realized gains (0.1262)

Total Distributions (0.1305)

Net Asset Value, End of Period $ 13.6863

Total Return 38.27%

Net Assets, End of Period $ 195,178,735

Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.35% *
- - After Reimbursement # 1.20% *

Ratio of Net Investment Loss to Average Net Assets:
- - Before Reimbursement (0.16%) *
- - After Reimbursement # (0.01%) *

Portfolio Turnover Rate 18.94%

*Annualized

# Percentages are shown net of expenses reimbursed by GW Capital Management,
LLC.

(A) The portfolio commenced operations on July 26, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM GLOBAL BOND PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 10.0000

Income from Investment Operations

Net investment income 0.1641
Net realized and unrealized loss (0.2894)

Total Loss From Investment Operations (0.1253)

Less Distributions

From net investment income (0.1640)

Total Distributions (0.1640)

Net Asset Value, End of Period $ 9.7107

Total Return (1.25%)

Net Assets, End of Period $ 91,795,099

Ratio of Expenses to Average Net Assets 1.30% *

Ratio of Net Investment Income to Average Net Assets 4.00% *

Portfolio Turnover Rate 86.93%

*Annualized

(A) The portfolio commenced operations on July 26, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM INDEX 400 PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,

1999
(A)

Net Asset Value, Beginning of Period $ 10.0000

Income from Investment Operations

Net investment income 0.0393
Net realized and unrealized gain 0.6902

Total Income From Investment Operations 0.7295

Less Distributions

From net investment income (0.0392)

Total Distributions (0.0392)

Net Asset Value, End of Period $ 10.6903

Total Return 7.30%

Net Assets, End of Period $ 10,729,826

Ratio of Expenses to Average Net Assets 0.60% *

Ratio of Net Investment Income to Average Net Assets 0.92% *

Portfolio Turnover Rate 26.41%

*Annualized

(A) The portfolio commenced operations on July 26, 1999.

<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:
<TABLE>

<S> <C>
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) 0.1346 0.1061 (0.0432)
on investments

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%
</TABLE>

*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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

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) 0.1430 0.0790 (0.0279)
on investments

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%
</TABLE>

*Annualized

(A) The portfolio commenced operations on September 9, 1997.

<PAGE>

MAXIM SERIES FUND, INC.

MODERATE PROFILE 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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

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) 0.0780 0.0769 (0.0308)
on investments

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%
</TABLE>

*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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

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) 0.0104 0.0576 (0.0085)
on investments

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%

</TABLE>

*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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

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) (0.0169) 0.0266 0.0094
on investments

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%

</TABLE>

*Annualized

(A) The portfolio commenced operations on September 9, 1997.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM AGGRESSIVE PROFILE II PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 9.7751

Income from Investment Operations

Net investment income 0.0191
Capital gain distributions received 0.6332

Total distributions received 0.6523

Net realized and unrealized gain on investments 0.9792

Total Income From Investment Operations 1.6315

Less Distributions

From net investment income (0.0191)
From net realized gains (0.3729)

Total Distributions (0.3920)

Net Asset Value, End of Period $ 11.0146

Total Return 16.72%

Net Assets, End of Period $ 2,195,730

Ratio of Expenses to Average Net Assets 0.10% *

Ratio of Net Investment Income to Average Net Assets 1.63% *

Portfolio Turnover Rate 114.40%

*Annualized

(A) The portfolio commenced operations on September 16, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM MODERATELY AGGRESSIVE PROFILE II PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 9.8559

Income from Investment Operations

Net investment income 0.0471
Capital gain distributions received 0.3953

Total distributions received 0.4424

Net realized and unrealized gain on investments 0.6808

Total Income From Investment Operations 1.1232

Less Distributions

From net investment income (0.0469)
From net realized gains (0.2219)

Total Distributions (0.2688)

Net Asset Value, End of Period $ 10.7103

Total Return 11.41%

Net Assets, End of Period $ 3,765,097

Ratio of Expenses to Average Net Assets 0.10% *

Ratio of Net Investment Income to Average Net Assets 4.76% *

Portfolio Turnover Rate 105.09%

*Annualized

(A) The portfolio commenced operations on September 16, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM MODERATE PROFILE II PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 9.7937

Income from Investment Operations

Net investment income 0.0685
Capital gain distributions received 0.3526

Total distributions received 0.4211

Net realized and unrealized gain on investments 0.4076

Total Income From Investment Operations 0.8287

Less Distributions

From net investment income (0.0683)
From net realized gains (0.1817)

Total Distributions (0.2500)

Net Asset Value, End of Period $ 10.3724

Total Return 8.47%

Net Assets, End of Period $ 2,705,549

Ratio of Expenses to Average Net Assets 0.10% *

Ratio of Net Investment Income to Average Net Assets 5.72% *

Portfolio Turnover Rate 113.22%

*Annualized

(A) The portfolio commenced operations on September 16, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM MODERATELY CONSERVATIVE PROFILE II PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 9.7877

Income from Investment Operations

Net investment income 0.0870
Capital gain distributions received 0.2686

Total distributions received 0.3556

Net realized and unrealized gain on investments 0.3819

Total Income From Investment Operations 0.7375

Less Distributions

From net investment income (0.0867)
From net realized gains (0.1227)

Total Distributions (0.2094)

Net Asset Value, End of Period $ 10.3158

Total Return 7.54%

Net Assets, End of Period $ 908,102

Ratio of Expenses to Average Net Assets 0.10% *

Ratio of Net Investment Income to Average Net Assets 7.54% *

Portfolio Turnover Rate 84.96%

*Annualized

(A) The portfolio commenced operations on September 27, 1999.

<PAGE>

MAXIM SERIES FUND, INC.

MAXIM CONSERVATIVE PROFILE II PORTFOLIO
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock of the portfolio for the period ended
December 31, 1999 is as follows:

Period Ended
December 31,
1999
(A)

Net Asset Value, Beginning of Period $ 9.9102

Income from Investment Operations

Net investment income 0.1177
Capital gain distributions received 0.1832

Total distributions received 0.3009

Net realized and unrealized gain on investments 0.1945

Total Income From Investment Operations 0.4954

Less Distributions

From net investment income (0.1172)
From net realized gains (0.0543)

Total Distributions (0.1715)

Net Asset Value, End of Period $ 10.2341

Total Return 5.00%

Net Assets, End of Period $ 738,926

Ratio of Expenses to Average Net Assets 0.10% *

Ratio of Net Investment Income to Average Net Assets 8.24% *

Portfolio Turnover Rate 176.32%

*Annualized

(A) The portfolio commenced operations on September 30, 1999.

<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.

___________________________________________________________

MAXIM SERIES FUND, INC.

___________________________________________________________

Securities Portfolio
Maxim Global Bond Portfolio

Maxim Loomis Sayles Small-Cap Value Portfolio

Maxim Ariel MidCap Value Portfolio Maxim Ariel Small-Cap Value Portfolio
Maxim T. Rowe Price MidCap Growth Portfolio Maxim INVESCO Small-Cap Growth Portfolio

Aggressive Profile I Portfolio Maxim Stock Index Portfolio
Moderately Aggressive Profile I Portfolio Maxim Index 600 Portfolio

Moderate Profile I Portfolio Maxim Value Index Portfolio
Moderately Conservative Profile I Portfolio Maxim Growth Index Portfolio
Conservative Profile I Portfolio Maxim Index 400 Portfolio

Maxim Bond Index Portfolio (formerly, Maxim

</TABLE>

(the "Portfolios")

STATEMENT OF ADDITIONAL INFORMATION ("SAI")

Throughout this SAI, "the Portfolio" is intended to refer to each
Portfolio listed above, unless otherwise indicated. This SAI is
not a Prospectus and should be read together with the Prospectuses
for the Fund dated May 1, 2000. Requests for copies of the
Prospectus should be made by writing to: Secretary, Maxim Series
Fund, Inc., at 8515 East Orchard Road, Englewood, Colorado 80111,
or by calling (303) 737-3000. The financial statements appearing
in the Annual Report and Semi-Annual Report, which accompany this
SAI, are incorporated into this SAI by reference.

May 1, 2000

TABLE OF CONTENTS

Page
INFORMATION ABOUT THE FUNDS 1

INVESTMENT LIMITATIONS 1

INVESTMENT POLICIES AND PRACTICES 11

MANAGEMENT OF THE FUND 25

INVESTMENT ADVISORY SERVICES 26

PORTFOLIO TRANSACTIONS AND BROKERAGE 30

PURCHASE AND REEMPTION OF SHARES 33

INVESTMENT PERFORMANCE 36

DIVIDENDS AND TAXES 39

OTHER INFORMATION 41

FINANCIAL STATEMENTS 41

APPENDIX 42

INFORMATION ABOUT THE FUND AND PORTFOLIOS

Maxim Series Fund, Inc. is registered with the Securities and Exchange
Commission ("SEC") as an open-end management investment company (the "Fund").
The Fund offers thirty-six investment portfolios, thirty-three of which are
diversified portfolios and three of which are non-diversified portfolios. The
Fund is a Maryland corporation organized on December 7, 1981and commenced
business as an investment company in 1982. The Portfolios are "no-load,"
meaning you pay no sales charges or distribution fees. The Portfolios are
presently only available in connection with variable annuity contracts and
variable life insurance policies issued by Great-West Life & Annuity Insurance
Company and certain other life insurance companies and certain qualified
retirement and pension plans. GW Capital Management, LLC ("GW Capital
Management"), a wholly owned subsidiary of Great-West Life & Annuity Insurance
Company ("GWL&A"), serves as the Fund's investment adviser.

Diversified Portfolios

Each diversified Portfolio will operate as a diversified investment portfolio of
the Fund. This means that at least 75% of the value of its total assets will be
represented by cash and cash items (including receivables), U.S. government
securities, securities of other investment companies, and other securities, the
value of which with respect to any one issuer is neither more than 5% of the
Portfolio's total assets nor more than 10% of the outstanding voting securities
of such issuer.

Non-Diversified Portfolios

A non-diversified Portfolio is any Portfolio other than a diversified
Portfolio. The Maxim Short-Term Maturity Bond, Maxim Global Bond, Maxim Vista
Growth & Income and Maxim U.S. Government Mortgage Securities Portfolios are
considered "non-diversified" because they may invest a greater percentage of
their assets in a particular issuer or group of issuers than a diversified fund
would. Since a relatively high percentage of a non-diversified Portfolio's
assets may be invested in the securities of a limited number of issuers, some
of which may be in the same industry, the Portfolio may be more sensitive to
changes in the market value of a single issuer or industry.

Investment Limitations

The Fund has adopted limitations on the investment activity of its Portfolios
which are fundamental policies and may not be changed without the approval of
the holders of a majority of the outstanding voting shares of the affected
Portfolio. These limitations apply to all Portfolios except the Maxim T. Rowe
Price Equity/Income, Maxim T. Rowe Price MidCap Growth, Maxim INVESCO Balanced,
Maxim Founders Growth & Income, Aggressive Profile I, Moderately Aggressive
Profile I, Moderate Profile I, Moderately Conservative Profile I, Conservative
Profile I, Maxim Global Bond, Maxim Aggressive Profile II, Maxim Moderately
Aggressive Profile II, Maxim Moderate Profile II, Maxim Moderately Conservative
Profile II and Maxim Conservative Profile II Portfolios. Please see
descriptions starting on page 13 of the investment limitations applicable to
these Portfolios. If only one Portfolio is affected, only shares of that
Portfolio are entitled to vote. "Majority" for this purpose and under the
Investment Company Act of 1940 means the lesser of (i) 67% of the shares
represented at a meeting at which more than 50% of the outstanding shares are
represented or (ii) more than 50% of the outstanding shares. A complete
statement of all such limitations are set forth below.

The Fund (i.e., each Portfolio) will not:

1. (a) Invest more than 15% of its total assets (taken at market value at the
time of each investment) in obligations (excluding repurchase agreements)
of any one bank, or, with respect to 75% of its assets, invest more than 5%
of such assets in the securities (other than United States Government or
government agency securities) of any one issuer other than a bank (but
including repurchase agreements with any one bank); and (b) purchase more
than either (i) 10% in principal amount of the outstanding debt securities
of an issuer, or (ii) 10% of the outstanding voting securities of an
issuer, except that such restrictions shall not apply to securities issued
or guaranteed by the United States Government or its agencies, bank money
instruments or bank repurchase agreements. Under the diversification
requirements of the Investment Company Act of 1940 applicable to
diversified investment companies, such as the Fund, the Fund may not invest
more than 5% of the value of its total assets in the securities of any one
issuer (except that this statutory restriction does not apply with respect
to 25% of the value of an investment company's total assets). Under the
Fund's current interpretation of the statutory diversification tests, bank
obligations of the type in which the Fund invests are not subject to this
5% limitation and thus the Fund's only limitation in this regard is the 15%
limitation set forth above. The staff of the Securities and Exchange
Commission, however, has taken the position that certain bank obligations
are subject to the statutory 5% limitation, and further action by the
Commission may make it necessary that the Fund revise its investments in
bank obligations so as not to exceed the 5% limitation in order for the
Fund to maintain its status as a diversified company. This investment
restriction does not apply to the Global Bond, Maxim U.S. Government
Mortgage Securities or Maxim Short-Term Maturity Bond Portfolios.

2. Invest more than 25% of its total assets (taken at market value at
the time of each investment) in the securities of issuers primarily engaged
in the same industry; utilities will be divided according to their
services; for example, gas, gas transmission, electric and telephone each
will be considered a separate industry for purposes of this restriction;
provided that there shall be no limitation on the purchase of obligations
issued or guaranteed by the U.S. Government, or its agencies or
instrumentalities, or of certificates of deposit and bankers' acceptances.

3. Alone or together with any other investor make investments for the purpose
of exercising control over, or management of any issuer.

4. Purchase securities of other investment companies, except in connection
with a merger, consolidation, acquisition or reorganization, or by purchase
in the open market of securities of closed-end investment companies where
no underwriter or dealer's commission or profit, other than customary
broker's commission, is involved, and only if immediately thereafter not
more than 10% of such Fund's total assets, taken at market value, would be
invested in such securities. This investment restriction does not apply to
the Maxim Short-Term Maturity Bond Portfolio.

5. Purchase or sell interests in commodities, commodities contracts, oil, gas
or other mineral exploration or development programs, or real estate,
except that the Fund may purchase securities of issuers which invest or
deal in any of the above; provided, however, that the Bond, Maxim Stock
Index, Maxim Index 600, Maxim Growth Index, Maxim Value Index, Maxim Ariel
MidCap Value, Maxim Templeton International Equity, Maxim Ariel Small-Cap
Value, Maxim Loomis Sayles Corporate Bond, Maxim Loomis Sayles Small-Cap
Value, Maxim INVESCO Small-Cap Growth, Maxim INVESCO ADR, Maxim Short-Term
Maturity Bond, Maxim Index 400, Maxim Index Pacific, Maxim Index European
and Maxim Bond Index Portfolios may invest in futures contracts based on
financial indices, foreign currency transactions and options on permissible
futures contracts.

6. Purchase securities for the Fund which cannot be sold without registration
or the filing of a notification under federal or state securities laws if,
as a result, such investments would exceed 10% of the value of such Fund's
net assets (15% for the Maxim INVESCO Small-Cap Growth and Maxim INVESCO
ADR Portfolios). This investment restriction does not apply to the Maxim
Short-Term Maturity Bond Portfolio.

7. Purchase any securities on margin (except that the Fund may obtain such
short-term credit as may be necessary for the clearance of purchases and
sales of portfolio securities, and the Bond, Maxim Stock Index, Maxim Index
600, Maxim Value Index, Maxim Growth Index, Maxim Templeton International
Equity, Maxim Ariel Small-Cap Value, Maxim Ariel MidCap Value, Maxim Loomis
Sayles Corporate Bond, Maxim Short-Term Maturity Bond, Maxim Loomis Sayles
Small-Cap Value, Maxim INVESCO Small-Cap Growth, Maxim INVESCO ADR, Maxim
Index 400, Maxim Bond Index, Maxim Index Pacific and Maxim Index European
Portfolios may make margin payments in connection with transactions in
futures contracts) or make short sales of securities or maintain a short
position.

8. Make loans, except as provided in limitation (9) below and except through
the purchase of obligations in private placements (the purchase of
publicly-traded obligations are not being considered the making of a loan).

9. Lend its portfolio securities in excess of 20% of its total assets, taken
at market value at the time of the loan, and provided that such loan shall
be made in accordance with the guidelines set forth under "Lending of
Portfolio Securities", in this Statement of Additional Information (33 1/3%
for the Maxim Short-Term Maturity Bond, Maxim Index 400, Maxim Index
European and Maxim Index Pacific Portfolios).

10. Borrow amounts in excess of 10% of its total assets, taken at market value
at the time of the borrowing, and then only from banks as a temporary
measure for extraordinary or emergency purposes. In the event the Fund
borrows in excess of 5% of its total assets, at the time of such borrowing
it will have an asset coverage of at least 300%. As a matter of policy,
all borrowings will be repaid before any investments are made.

11. Mortgage, pledge, hypothecate or in any manner transfer, as security for
indebtedness, any securities owned or held by the Fund except as may be
necessary in connection with borrowings mentioned in limitation (10) above,
and then such mortgaging, pledging or hypothecating may not exceed 10% of
the Fund's total assets, taken at market value at the time thereof. The
Fund will not, as a matter of operating policy, mortgage, pledge or
hypothecate its portfolio securities to the extent that at any time the
percentage of the value of pledged securities will exceed 10% of the value
of the Fund's shares. This restriction does not apply to segregated
accounts.

12. Underwrite securities of other issuers except insofar as the Fund may be
deemed an underwriter under the Securities Act of 1933 in selling portfolio
securities.

13. Write, purchase or sell puts, calls or combinations thereof, except that
the Bond, Maxim Index 600, Maxim Value Index, Maxim Growth Index, Maxim
Ariel MidCap Value, Maxim Templeton International Equity, Maxim Ariel
Small-Cap Value, Maxim Loomis Sayles Corporate Bond, Maxim Loomis Sayles
Small-Cap Value, Maxim Short-Term Maturity Bond, Maxim INVESCO Small-Cap
Growth, Maxim Index 400, Maxim Bond Index, Maxim Stock Index, Maxim Index
European, Maxim Index Pacific and Maxim INVESCO ADR Portfolios may buy and
sell put and call options (and any combination thereof) on securities
(including index options), on index futures contracts, on securities
indices, and on foreign currencies (to the extent a Portfolio may invest in
foreign currencies) and may buy and sell put and call warrants, the values
of which are based upon securities indices. In addition, the Bond
Portfolio may buy and sell put and call options ( and any combination
thereof) on permissible futures contracts.

14. Sell securities short or purchase securities on margin.

15. Invest in securities of foreign issuers if at the time of acquisition more
than 10% of its total assets, taken at market value at the time of
investment, would be invested in such securities. However, up to 25% of
the total assets of a Portfolio may be invested in securities (i) issued,
assumed or guaranteed by foreign governments, or political subdivisions or
instrumentalities thereof, (ii) assumed or guaranteed by domestic issuers,
including Eurodollar securities, or (iii) issued, assumed or guaranteed by
foreign issuers having a class of securities listed for trading on the New
York Stock Exchange or on a major Canadian exchange. See "Foreign
Securities", below. This investment limitation will not apply to the Maxim
Templeton International Equity, Maxim Ariel MidCap Value, Bond, Maxim Ariel
Small-Cap Value, Maxim Loomis Sayles Corporate Bond, Maxim Short-Term
Maturity Bond, Maxim Loomis Sayles Small-Cap Value, Maxim INVESCO Small-Cap
Growth, Maxim INVESCO ADR, Maxim Index European and Maxim Index Pacific
Portfolios.

Following are investment limitations applicable to the Maxim T. Rowe Price
Equity/Income and Maxim T. Rowe Price MidCap Growth Portfolios. These are
fundamental policies and may not be changed without the approval of the holders
of a majority of the outstanding voting shares of the Portfolio. "Majority"
for this purpose and under the Investment Company Act of 1940 means the lesser
of (i) 67% of the shares represented at a meeting at which more than 50% of the
outstanding shares are represented or (ii) more than 50% of the outstanding
shares.

The Portfolios will not:

3. Purchase or sell interests in commodities, commodities contracts, oil, gas
or other mineral exploration or development programs, or real estate,
except that the Portfolio may purchase securities of issuers which invest
or deal in any of the above; provided, however, that the Portfolio may
invest in futures contracts, forward currency contracts, and options on
futures.

4. Make loans, except as provided in limitation (5) below and except through
the purchase of obligations in private placements (the purchase of
publicly-traded obligations are not being considered the making of a loan).

5. Lend its portfolio securities in excess of 33 1/3% of its total assets,
taken at market value at the time of the loan, and provided that such loan
shall be made in accordance with the guidelines set forth under "Lending of
Portfolio Securities" of this Statement of Additional Information.

6. Borrow, except that the Portfolios may (i) borrow for non-leveraging,
temporary or emergency purposes and (ii) engage in reverse repurchase
agreements and make other investments or engage in other transactions which
may involve a borrowing, in a manner consistent with the Portfolio's
investment objective and program, provided that the combination of (i) and
(ii) shall not exceed 33 1/3% of the value of the Portfolio's total assets
(including the borrowed amount) less liabilities (other than borrowings) or
such other percentage permitted by law. Any borrowings which come to
exceed this amount will be reduced in accordance with applicable law.
Reverse repurchase agreements and other investments which are "covered" by
a segregated account or an offsetting position in accordance with
applicable SEC requirements do not constitute borrowings for purposes of
any asset coverage requirement.

7. Underwrite securities of other issuers except insofar as the Portfolio may
be deemed an underwriter under the Securities Act of 1933 in selling
portfolio securities.

8. Purchase or sell real estate including limited partnership interests
therein, unless acquired as a result of ownership of securities or other
instruments (but this shall not prevent the Portfolio from investing in
securities or other instruments backed by real estate or in securities of
companies engaged in the real estate business).

9. Issue senior securities except in compliance with the Investment Company
Act of 1940.

Notes

The following notes should be read in connection with the above-described
investment limitations. The notes are not fundamental policies.

With respect to investment limitation (3), the Portfolios do not consider
currency contracts or hybrid investments to be commodities.

For purposes of investment limitation (2), U.S., state or local governments, or
related agencies or instrumentalities, are not considered an industry.
Industries are determined by reference to the classifications of industries set
forth in the Portfolio's semi-annual and annual reports.

For purposes of investment limitations (4) and (5), the Portfolios will
consider the acquisition of a debt security to include the execution of a note
or other evidence of an extension of credit with a term of more than nine
months.

Operating Policies

As a matter of operating policy, the Portfolios may not:

Purchase additional securities when money borrowed exceeds 5% of its total
assets.

Invest in companies for the purpose of exercising management or control.

Purchase a futures contract or an option thereon if, with respect to positions
in futures or options on futures which do not represent bona fide hedging, the
aggregate initial margin and premiums on such options would exceed 5% of the
Portfolio's net asset value.

Purchase securities of open-end or closed-end investment companies except in
compliance with the Investment Company Act of 1940 and applicable state law.
Duplicate fees may result from such purchases.

Purchase securities on margin, except (i) to obtain short-term credit necessary
for clearance of purchases of portfolio securities and (ii) to make margin
deposits in connection with futures contracts or other permissible investments.

Mortgage, pledge, hypothecate or, in any manner, transfer any security owned by
the Portfolios as security for indebtedness except as may be necessary in
connection with permissible borrowings or investments and then such mortgaging,
pledging or hypothecating may not exceed 33 1/3% of the Portfolio's total
assets at the time of borrowing or investment.

Purchase participations or other direct interests in or enter into leases with
respect to, oil, gas, or other mineral exploration or development programs if,
as a result thereof, more than 5% of the value of the total assets of the
Portfolio would be invested in such programs.

Effect short sales of securities, unless a Portfolio owns or has the right to
obtain securities equivalent in kind and amount to the securities sold short
without the payment of any additional consideration therefor, and provided that
transactions in options, swaps and forward futures contracts are not deemed to
constitute selling securities short.

Invest in warrants if, as a result thereof, more than 10% of the value of the
net assets of the Portfolio would be invested in warrants.

Following are investment limitations applicable to the Maxim Founders Growth &
Income Portfolio. The policies designated as fundamental policies may not be
changed without the approval of the holders of a majority of the outstanding
voting shares of the Portfolio. "Majority" for this purpose and under the
Investment Company Act of 1940 means the lesser of (i) 67% of the shares
represented at a meeting at which more than 50% of the outstanding shares are
represented or (ii) more than 50% of the outstanding shares. The policies
designated as non-fundamental may be changed by the Fund's Board of Directors
without shareholder approval.

Fundamental Policies

The Portfolio will not:

1. Make loans to other persons; the purchase of a portion of an issue of
publicly or privately distributed bonds, debentures or other securities is
not considered the making of a loan by the Portfolio. The Portfolio may
also enter into repurchase agreements.

2. Underwrite the securities of other issuers except insofar as the Portfolio
may be deemed an underwriter under the Securities Act of 1933 in selling
portfolio securities.

3. Invest directly in physical commodities (other than foreign currencies),
real estate or interests in real estate; provided that the Portfolio may
invest in securities of issuers that invest in physical commodities, real
estate or interests in real estate; and, provided further, that this shall
not prevent the Portfolio from purchasing or selling options, futures,
swaps and forward contracts or from investing in securities or other
instruments backed by physical commodities, real estate or interests in
real estate.

4. Make any investment if, as a result, 25% or more of the Portfolio's total
assets would be invested in securities of issuers having their principal
business activities in the same industry, provided that this limitation
does not apply to obligations issued or guaranteed by the U.S. government,
its agencies or instrumentalities.

5. Issue any senior securities except in compliance with the Investment
Company Act of 1940.

6. Borrow money, except for extraordinary or emergency purposes, and then only
from banks in amounts up to 33 1/3% of the Portfolio's total assets.

Non-Fundamental Policies

Purchase any securities on margin except to obtain such short-term credits as
may be necessary for the clearance of transactions.

Sell securities short, unless the Portfolio owns or has the right to obtain
securities equivalent in kind and amount to the securities sold short without
the payment of any additional consideration therefor, and provided that
transactions in options, swaps and forward futures contracts are not deemed to
constitute selling securities short.

Purchase more than 10% of any class of securities of any single issuer or
purchase more than 10% of the voting securities of any single issuer.

Purchase securities of any issuer (other than obligations of, or guaranteed by,
the United States government, its agencies or instrumentalities) if, as a
result, more than 5% of the value of the Portfolio's total assets would be
invested in securities of that issuer.

Invest more than 15% of the market value of its net assets in securities which
are not readily marketable, including repurchase agreements maturing in over
seven days.

Following are investment limitations applicable to the Maxim INVESCO Balanced
Portfolio. These are fundamental policies and may not be changed without the
approval of the holders of a majority of the outstanding voting shares of the
Portfolio. "Majority" for this purpose and under the Investment Company Act of
1940 means the lesser of (i) 67% of the shares represented at a meeting at
which more than 50% of the outstanding shares are represented or (ii) more than
50% of the outstanding shares.

The Portfolio will not:

1. Invest more than 25% of its total assets (taken at market value at
the time of each investment) in the securities of issuers primarily engaged
in the same industry; utilities will be divided according to their
services; for example, gas, gas transmission, electric and telephone each
will be considered a separate industry for purposes of this restriction;
provided that there shall be no limitation on the purchase of obligations
issued or guaranteed by the U.S. Government, or its agencies or
instrumentalities, or of certificates of deposit and bankers' acceptances.

2. With respect to 75% of its total assets, purchase the securities of any one
issuer (except cash items and "Government securities" as defined under the
1940 Act), if the purchase would cause the Portfolio to have more than 5%
of the value of its total assets invested in the securities of such issuer
or to own more than 10% of the outstanding voting securities of such issuer.

3. Purchase or sell physical commodities other than foreign currencies unless
acquired as a result of ownership of securities (but this shall not prevent
the Portfolio from purchasing or selling options, futures, swap and forward
contracts or from investing in securities or other instruments backed by
physical commodities).

5. Lend its portfolio securities in excess of 33 1/3% of the total assets of
the Portfolio (including the amount borrowed), taken at market value at the
time of the loan, and provided that such loan shall be made in accordance
with the guidelines set forth under "Lending of Portfolio Securities", in
this Statement of Additional Information.

6. Borrow money, except that the Portfolio may borrow money as a temporary
measure for extraordinary or emergency purposes (not for leveraging or
investment) and may enter into reverse repurchase agreements in an
aggregate amount not exceeding 33 1/3% of the value of its total assets
(including the amount borrowed) less liabilities (other than borrowings).
Any borrowing that comes to exceed 33 1/3% of the value of the Portfolio's
total assets due to a decline in net assets will be reduced within three
days to the extent necessary to comply with the 33 1/3% limitation. This
restriction shall not prohibit deposits of assets to margin or guarantee
positions in futures, options, swaps or forward contracts, or the
segregation of assets in connection with such contracts.

7. Underwrite securities of other issuers except insofar as the Portfolio may
be deemed an underwriter under the Securities Act of 1933 in selling
portfolio securities.

8. Invest directly in real estate or interest in real estate; however, the
Portfolio may own debt or equity securities issued by companies engaged in
those businesses.

9. Issue senior securities. For purposes of this restriction, the issuance of
shares of common stock in multiple classes or series, obtaining of
short-term credits as may be necessary for the clearance of purchases and
sales of portfolio securities, short sales against the box, the purchase or
sale or permissible options and futures transactions (and the use of
initial and maintenance margin arrangements with respect to futures
contracts or related options transactions), the purchase or sale of
securities on a when issued or delayed delivery basis, permissible
borrowings entered into in accordance with the Portfolio's investment
policies, and reverse repurchase agreements are not deemed to be issuances
of senior securities.

As a fundamental policy in addition to the above, the Portfolio may,
notwithstanding any other investment policy or limitation (whether or not
fundamental), invest all of its assets in the securities of a single open-end
management investment company with substantially the same fundamental
investment objectives, policies and limitations as the Portfolio.

Further, the following additional investment restrictions, which are
operating policies of the Portfolio are applicable. These policies may be
changed by the Board of Directors without shareholder approval.

(a) Investments in warrants, valued at the lower of cost or market, may not
exceed 5% of the value of the Portfolio's net assets. Included within that
amount, but not to exceed 2% of the value of the Portfolio's net assets,
may be warrants that are not listed on the New York or American Stock
Exchanges. Warrants acquired by the Portfolio in units or attached to
securities shall be deemed to be without value.

(b) The Portfolio will not (i) enter into futures contracts or options on
futures contracts if immediately thereafter the aggregate margin deposits
on all outstanding futures contracts positions held by the Portfolio and
premiums paid on outstanding options on futures contracts, after taking
into consideration unrealized profits and losses, would exceed 5% of the
market value of the total assets of the Portfolio, or (ii) enter into any
futures contracts if the aggregate net amount of the Portfolio's
commitments under outstanding futures contracts positions of the Portfolio
would exceed the market value of the total assets of the Portfolio.

(c) The Portfolio does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short without the payment of any additional
consideration therefor, and provided that transactions in options, swaps
and forward futures contracts are not deemed to constitute selling
securities short.

(d) The Portfolio does not currently intend to purchase securities on margin,
except that the Portfolio may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments and other deposits in connection with transactions in options,
futures, swaps and forward contracts shall not be deemed to constitute
purchasing securities on margin.

(e) The Portfolio does not currently intend to (i) purchase securities of
closed end investment companies, except in the open market where no
commission except the ordinary broker's commission is paid, or (ii)
purchase or retain securities issued by other open-end management
investment companies. Limitations (i) and (ii) do not apply to money
market funds or to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
If the Portfolio invests in a money market fund, the investment advisory
fee will be waived on the assets of the Portfolio which are invested in the
money market fund during the time that those assets are so invested.

(f) The Portfolio may not mortgage or pledge any securities owned or held by
the Portfolio in amounts that exceed, in the aggregate, 15% of the
Portfolio's net asset value, provided that this limitation does not apply
to reverse repurchase agreements or in the case of assets deposited to
margin or guarantee positions in futures, options, swaps or forward
contracts or placed in a segregated account in connection with such
contracts.

(g) The Portfolio does not currently intend to purchase securities of any
issuer (other the U.S. Government agencies and instrumentalities or
instruments guaranteed by an entity with a record of more than three years'
continuous operation, including that of predecessors) with a record of less
than three years' continuous operation (including that of predecessors) if
such purchase would cause the Portfolio's investments in all such issuers
to exceed 5% of the Portfolio's total assets taken at market value at the
time of such purchase.

(h) The Portfolio does not currently intend to invest directly in oil, gas, or
other mineral development or exploration programs or leases; however, the
Portfolio may own debt or equity securities of companies engaged in those
businesses.

(i) The Portfolio may not invest in companies for the purpose of exercising
control or management, except to the extent that exercise by the Portfolio
of its rights under agreements related to portfolio securities would be
deemed to constitute such control.

Following are the limitations on the investment activity of the Maxim Profile I
Portfolios and Maxim Profile II Portfolios (collectively, for purposes of this
discussion, the "Maxim Profile Portfolios"). These limitations are fundamental
policies and may not be changed without the approval of the holders of a
majority of the outstanding voting shares of the Portfolio. "Majority" for
this purpose and under the Investment Company Act of 1940 means the lesser of
(i) 67% of the shares represented at a meeting at which more than 50% of the
outstanding shares are represented or (ii) more than 50% of the outstanding
shares. A complete statement of all such limitations are set forth below.

Each Maxim Profile Portfolio will not:

7. Underwrite securities of other issuers except insofar as the Portfolio may
be deemed an underwriter under the Securities Act of 1933 in selling
portfolio securities.

8. Invest directly in real estate or interest in real estate; however, the
Portfolio may own debt or equity securities issued by companies engaged in
those businesses.

9. Issue senior securities. For purposes of this restriction, the issuance
of shares of common stock in multiple classes or series, obtaining of
short-term credits as may be necessary for the clearance of purchases and
sales of portfolio securities, short sales against the box, the purchase or
sale or permissible options and futures transactions (and the use of initial
and maintenance margin arrangements with respect to futures contracts or
related options transactions), the purchase or sale of securities on a when
issued or delayed delivery basis, permissible borrowings entered into in
accordance with the Portfolio's investment policies and reverse repurchase
agreements are not deemed to be issuances of senior securities.

10. Purchase any securities on margin except to obtain such short-term
credits as may be necessary for the clearance of transactions, and provided
that margin payments and other deposits in connection with transactions in
options, futures, swaps and forward contracts shall not be deemed to
constitute purchasing securities on margin.

11. Sell securities short, unless the Portfolio owns or has the right to obtain
securities equivalent in kind and amount to the securities sold short
without the payment of any additional consideration therefor, and provided
that transactions in options, swaps and forward futures contracts are not
deemed to constitute selling securities short.

Following are investment limitations applicable to the Maxim Global Bond
Portfolio. These are fundamental policies and may not be changed without the
approval of the holders of a majority of the outstanding voting shares of the
Portfolio. "Majority" for this purpose and under the Investment Company Act of
1940 means the lesser of (i) 67% of the shares represented at a meeting at
which more than 50% of the outstanding shares are represented or (ii) more than
50% of the outstanding shares.

The Portfolio will not:

1. Invest more than 25% of its total assets (taken at market value at the time
of each investment) in the securities of issuers primarily engaged in the same
industry. Utilities will be divided according to their services; for example,
gas, gas transmission, electric and telephone each will be considered a separate
industry for purposes of this restriction.

2. ...Purchase or sell interests in commodities, commodities contracts, oil, gas
or other mineral exploration or development programs, or real estate, except
that the Portfolio may purchase securities of issuers which invest or deal in
any of the above; provided, however, that the Portfolio may invest in futures
contracts on financial indices, foreign currency transactions and options on
permissible futures contracts.

3. ...(a) Purchase any securities on margin, (b) make short sales of securities,
or (c) maintain a short position, except that the Portfolio may (i) obtain such
short-term credit as may be necessary for the clearance of purchases and sales
of portfolio securities, (ii) make margin payments in connection with
transactions in futures contracts and currency futures contracts and enter into
permissible options transactions, and (iii) make short sales against the box.

4. ...Make loans, except as provided in limitation (5) below and except through
the purchase of obligations in private placements (the purchase of
publicly-traded obligations are not being considered the making of a loan) and
through repurchase agreements.

5. ...Lend its portfolio securities in excess of 33 1/3% of its total assets,
taken at market value at the time of the loan, provided that such loan shall be
made in accordance with the guidelines set forth under "Lending of Portfolio
Securities" in this Statement of Additional Information.

6. ...Borrow, except that the Portfolio may borrow for temporary or emergency
purposes. The Portfolio will not borrow unless immediately after any such
borrowing there is an asset coverage of at least 300 percent for all borrowings
of the Portfolio. If such asset coverage falls below 300 percent, the Portfolio
will within three days thereafter reduce the amount of its borrowings to an
extent that the asset coverage of such borrowings will be at least 300 percent.
Reverse repurchase agreements and other investments which are "covered" by a
segregated account or an offsetting position in accordance with applicable SEC
requirements ("covered investments") do not constitute borrowings for purposes
of the 300% asset coverage requirement. The Portfolio will repay all borrowings
in excess of 5% of its total assets before any additional investments are made.
Covered investments will not be considered borrowings for purposes of applying
the limitation on making additional investments when borrowings exceed 5% of
total assets.

7. ...Mortgage, pledge, hypothecate or in any manner transfer, as security for
indebtedness, any securities owned or held by the Portfolio except as may be
necessary in connection with borrowings mentioned in limitation (6) above, and
then such mortgaging, pledging or hypothecating may not exceed 10% of the
Portfolio's total assets, taken at market value at the time thereof. The
Portfolio will not, as a matter of operating policy, mortgage, pledge or
hypothecate its portfolio securities to the extent that at any time the
percentage of the value of pledged securities will exceed 10% of the value of
the Portfolio's shares. This limitation shall not apply to segregated accounts.

8. ...Underwrite securities of other issuers except insofar as the Portfolio may
be deemed an underwriter under the Securities Act of 1933 in selling portfolio
securities.

9. ...Issue senior securities. The issuance of more than one series or classes
of shares of beneficial interest, obtaining of short-term credits as may be
necessary for the clearance of purchases and sales of portfolio securities,
short sales against the box, the purchase or sale of permissible options and
futures transactions (and the use of initial and maintenance margin arrangements
with respect to futures contracts or related options transactions), the purchase
or sale of securities on a when issued or delayed delivery basis, permissible
borrowings entered into in accordance with the Portfolio's investment objectives
and policies, and reverse repurchase agreements are not deemed to be issuances
of senior securities.

INVESTMENT POLICIES AND PRACTICES

Except as described below and except as otherwise specifically stated in the
Prospectus or this Statement of Additional Information, the Portfolios'
investment policies set forth in the Prospectus and in this Statement of
Additional Information are not fundamental and may be changed without
shareholder approval.

The following pages contain more detailed information about types of securities
in which the Portfolios may invest, investment practices and techniques that GW
Capital Management or any sub-adviser may employ in pursuit of the Portfolios'
investment objectives, and a discussion of related risks. GW Capital Management
and/or its sub-advisers may not buy all of these securities or use all of these
techniques to the full extent permitted unless it believes that they are
consistent with the Portfolios' investment objectives and policies and that
doing so will help the Portfolios achieve their objectives. Unless otherwise
indicated, each Portfolio may invest in all these securities or use all of
these techniques. However, the Portfolios may not invest in all of these
securities or utilize all such techniques. In addition, due to unavailability,
economic unfeasibility or other factors, a Portfolio may simply have no
opportunity to invest in a particular security or use a particular investment
technique.

Asset-Backed Securities. Asset-backed securities represent interests in pools
of mortgages, loans, receivables or other assets. Payment of interest and
repayment of principal may be largely dependent upon the cash flows generated
by the assets backing the securities and, in certain cases, supported by
letters of credit, surety bonds, or other credit enhancements. Asset-backed
security values may also be affected by other factors including changes in
interest rates, the availability of information concerning the pool and its
structure, the creditworthiness of the servicing agent for the pool, the
originator of the loans or receivables, or the entities providing the credit
enhancement. In addition, these securities may be subject to prepayment
risk.

Bankers' Acceptances. A bankers' acceptance is a time draft drawn on a
commercial bank by a borrower, usually in connection with international
commercial transactions (to finance the import, export, transfer or storage of
goods). The borrower is liable for payment as well as the bank, which
unconditionally guarantees to pay the draft at its face amount on the maturity
date. Most acceptances have maturities of six months or less and are traded in
secondary markets prior to maturity. The Portfolios generally will not invest
in acceptances with maturities exceeding 7 days where to do so would tend to
create liquidity problems.

Borrowing. The Portfolios may borrow from banks or through reverse
repurchase agreements. If the fund borrows money, its share price may be
subject to greater fluctuation until the borrowing is paid off. If the fund
makes additional investments while borrowings are outstanding, this may be
considered a form of leverage. In the event a Portfolio borrows in excess of 5%
of its total assets, at the time of such borrowing it will have an asset
coverage of at least 300%.

Brady Bonds. Brady bonds are debt obligations created through the exchange of
existing commercial bank loans to foreign entities for new obligations in
connection with debt restructurings under a plan introduced by former U.S.
Secretary of the Treasury, Nicholas F. Brady.

Brady bonds have been issued only relatively recently, and, accordingly, do not
have a long payment history. They may be collateralized or uncollateralized
and issued in various currencies (although most are U.S. dollar-denominated).
They are actively traded in the over-the-counter secondary market.

Collateralized Brady bonds may be fixed rate par bonds or floating rate
discount bonds, which are generally collateralized in full as to principal due
at maturity by U.S. Treasury zero coupon obligations which have the same
maturity as the Brady bonds. Interest payments on these Brady bonds generally
are collateralized by cash or securities in an amount that, in the case of
fixed rate bonds, is equal to at least one year of rolling interest payments
or, in the case of floating rate bonds, initially is equal to at least one
year's rolling interest payments based on the applicable interest rate at that
time and is adjusted at regular intervals thereafter. Certain Brady bonds are
entitled to "value recovery payments" in certain circumstances, which in effect
constitute supplemental interest payments but generally are not
collateralized. Brady bonds are often viewed as having three or four valuation
components: (i) the collateralized repayment of principal at final maturity;
(ii) the collateralized interest payments; (iii) the uncollateralized interest
payments; and (iv) any uncollateralized repayment of principal at maturity
(these uncollateralized amounts constitute the "residual risk"). In the event
of a default with respect to Collateralized Brady bonds as a result of which
the payment obligations of the issuer are accelerated, the U.S. Treasury zero
coupon obligations held as collateral for the payment of principal will not be
distributed to investors, nor will such obligations be sold and the proceeds
distributed. The collateral will be held by the collateral agent to the
scheduled maturity of the defaulted Brady bonds, which will continue to be
outstanding, at which time the face amount of the collateral will equal the
principal payments which would have then been due on the Brady bonds in the
normal course. In addition, in light of the residual risk of Brady bonds and,
among other factors, the history of defaults with respect to commercial bank
loans by public and private entities of countries issuing Brady bonds,
investments in Brady bonds are to be viewed as speculative.

Debt restructurings have been implemented under the Brady Plan in Argentina,
Brazil, Bolivia, Costa Rica, Mexico, Nigeria, the Philippines, Uruguay and
Venezuela, with the largest proportion of Brady bonds having been issued to
date by Argentina, Mexico and Venezuela. Most Argentine and Mexican Brady
bonds and a significant portion of the Venezuelan Brady bonds issued to date
are Collateralized Brady bonds with interest coupon payments collateralized on
a rolling-forward basis by funds or securities held in escrow by an agent for
the bondholders.

Certificates of Deposit. A certificate of deposit generally is a short-term,
interest bearing negotiable certificate issued by a commercial bank or savings
and loan association against funds deposited in the issuing institution.

Collateralized Mortgage Obligations. A Collateralized Mortgage Obligation
("CMO") is a bond which uses certificates issued by the Government National
Mortgage Association, or the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation as collateral in trust. The trust then
issues several bonds which will be paid using the cash flow from the collateral.
The trust can redirect cash flow temporarily, first paying one bond before other
bonds are paid. The trust can also redirect prepayments from one bond to another
bond, creating some stable bonds and some volatile bonds. The proportion of
principal cash flow and interest cash flow from the collateral flowing to each
bond can also be changed, creating bonds with higher or lower coupons to the
extreme of passing through the interest only to one bond and principal only to
another bond. Variable rate or floating coupon bonds are also often created
through the use of CMO's.

Commercial Paper. Commercial paper is a short-term promissory note issued by a
corporation primarily to finance short-term credit needs.

Common Stock. Common stock represents an equity or ownership interest in an
issuer. In the event an issuer is liquidated or declares bankruptcy, owners of
bonds and preferred stock take precedence over the claims of those who own
common stock.

Convertible Securities. Convertible securities are bonds, debentures, notes,
preferred stocks or other securities that may be converted or exchanged (by the
holder or by the issuer) into shares of the underlying common stock (or cash or
securities of equivalent value) at a stated exchange ratio. A convertible
security may also be called for redemption or conversion by the issuer after a
particular date and under certain circumstances (including a specified price),
may be called for redemption or conversion on a date established upon issue. If
a convertible security held by a fund is called for redemption or conversion,
the fund could be required to tender it for redemption, convert it into the
underlying common stock, or sell it to a third party. Convertible securities
generally have less potential for gain or loss than common stocks. Convertible
securities generally provide yields higher than the underlying common stocks,
but generally lower than comparable non-convertible securities. Because of this
higher yield, convertible securities generally sell at prices above their
"conversion value," which is the current market value of the stock to be
received upon conversion. The difference between this conversion value and the
price of convertible securities will vary over time depending on changes in the
value of the underlying common stocks and interest rates. When the underlying
common stocks decline in value, convertible securities will tend not to decline
to the same extent because of the interest or dividend payments and the
repayment of principal at maturity for certain types of convertible
securities. However, securities that are convertible other than at the option
of the holder generally do not limit the potential for loss to the same extent
as securities convertible at the option of the holder. When the underlying
common stocks rise in value, the value of convertible securities may also be
expected to increase. At the same time, however, the difference between the
market value of convertible securities and their conversion value will narrow,
which means that the value of convertible securities will generally not
increase to the same extent as the value of the underlying common stocks.
Because convertible securities may also be interest-rate sensitive, their value
may increase as interest rates fall and decrease as interest rates rise.
Convertible securities are also subject to credit risk, and are often
lower-quality securities.

Debt Securities. Debt securities are used by issuers to borrow money. The
issuer usually pays a fixed, variable or floating rate of interest, and must
repay the amount borrowed at the maturity of the security. Some debt
securities, such as zero coupon bonds, do not pay interest but are sold at a
deep discount from their face values. Debt securities include corporate bonds,
government securities, and mortgage and other
asset-backed securities.

Discount Obligations. Investment in discount obligations (including most Brady
bonds) may be in securities (i) which were initially issued at a discount from
their face value, and (ii) purchased by a Portfolio at a price less than their
stated face amount or at a price less than their issue price plus the portion
of "original issue discount" previously accrued thereon, i.e., purchased at a
"market discount." The amount of original issue discount and/or market
discount on obligations purchased by a Portfolio may be significant, and
accretion of market discount together with original issue discount, will cause
the Portfolio to realize income prior to the receipt of cash payments with
respect to these securities.

Emerging Markets Issuers. Emerging markets include any countries (i) having an
"emerging stock market" as defined by the International Finance Corporation;
(ii) with low- to middle-income economies according to the World Bank; or (iii)
listed in World Bank publications as developing. Currently, the countries not
included in these categories are Australia, Austria, Belgium, Canada, Denmark,
Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand,
Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United
States. Issuers whose principal activities are in countries with emerging
markets include issuers: (1) organized under the laws of, (2) whose securities
have their primary trading market in, (3) deriving at least 50% of their
revenues or profits from goods sold, investments made, or services performed
in, or (4) having at least 50% of their assets located in a country with, an
emerging market.

Eurodollar Certificates of Deposit. A Eurodollar certificate of deposit is a
short-term obligation of a foreign subsidiary of a U.S. bank payable in U.S.
dollars.

Floating Rate Note. A floating rate note is debt issued by a corporation or
commercial bank that is typically several years in term but has a resetting of
the interest rate on a one to six month rollover basis.

Foreign Currency Transactions. Any Portfolio which may invest in non-dollar
denominated foreign securities may conduct foreign currency transactions on a
spot (i.e., cash) basis or by entering into forward contracts to purchase or
sell foreign currencies at a future date and price. The Portfolios will
convert currency on a spot basis from time to time, and investors should be
aware of the costs of currency conversion. Although foreign exchange dealers
generally do not charge a fee for conversion, they do realize a profit based on
the difference between the prices at which they are buying and selling various
currencies. Thus, a dealer may offer to sell a foreign currency to a Portfolio
at one rate, while offering a lesser rate of exchange should the Portfolio
desire to resell that currency to the dealer. Forward contracts are generally
traded in an interbank market conducted directly between currency traders
(usually large commercial banks) and their customers. The parties to a forward
contract may agree to offset or terminate the contract before its maturity, or
may hold the contract to maturity and complete the contemplated currency
exchange.

A Portfolio may use currency forward contracts for any purpose consistent with
its investment objective. The following discussion summarizes the principal
currency management strategies involving forward contracts that could be used
by a Portfolio. A Portfolio may also use options and futures contracts
relating to foreign currencies for the same purposes.

When a Portfolio agrees to buy or sell a security denominated in a foreign
currency, it may desire to "lock in" the U.S. dollar price for the security.
By entering into a forward contract for the purchase or sale, for a fixed
amount of U.S. dollars, of the amount of foreign currency involved in the
underlying security transaction, the Portfolio will be able to protect itself
against an adverse change in foreign currency values between the date the
security is purchased or sold and the date on which payment is made or
received. This technique is sometimes referred to as a "settlement hedge" or
"transaction hedge." The Portfolios may also enter into forward contracts to
purchase or sell a foreign currency in anticipation of future purchases or
sales of securities denominated in foreign currency, even if the specific
investments have not yet been selected by GW Capital Management or one the
sub-advisers.

The Portfolios may also use forward contracts to hedge against a decline in the
value of existing investments denominated in foreign currency. For example, if
a Portfolio owned securities denominated in pounds sterling, it could enter
into a forward contract to sell pounds sterling in return for U.S. dollars to
hedge against possible declines in the pound's value. Such a hedge, sometimes
referred to as a "position hedge," would tend to offset both positive and
negative currency fluctuations, but would not offset changes in security values
caused by other factors. A Portfolio could also hedge the position by selling
another currency expected to perform similarly to the pound sterling, for
example, by entering into a forward contract to sell Deutsche marks or European
Currency Units in return for U.S. dollars. This type of hedge, sometimes
referred to as a "proxy hedge," could offer advantages in terms of cost, yield,
or efficiency, but generally would not hedge currency exposure as effectively
as a simple hedge into U.S. dollars. Proxy hedges may result in losses if the
currency used to hedge does not perform similarly to the currency in which the
hedged securities are denominated.

Each Portfolio may enter into forward contracts to shift its investment
exposure from one currency into another. This may include shifting exposure
from U.S. dollars into a foreign currency, or from one foreign currency into
another foreign currency. For example, if a Portfolio held investments
denominated in Deutschemarks, the Portfolio could enter into forward contracts
to sell Deutschemarks and purchase Swiss Francs. This type of strategy,
sometimes known as a "cross-hedge," will tend to reduce or eliminate exposure
to the currency that is sold, and increase exposure to the currency that is
purchased, much as if the Portfolio had sold a security denominated in one
currency and purchased an equivalent security denominated in another.
Cross-hedges protect against losses resulting from a decline in the hedged
currency, but will cause the Portfolio to assume the risk of fluctuations in
the value of the currency it purchases.

Under certain conditions, SEC guidelines require mutual funds to set aside
appropriate liquid assets in a segregated custodial account to cover currency
forward contracts. The Portfolios will not segregate assets to cover forward
contracts entered into for hedging purposes, including settlement hedges,
position hedges, and proxy hedges.

Successful use of currency management strategies will depend on GW Capital
Management's or the applicable sub-adviser's skill in analyzing and predicting
currency values. Currency management strategies may substantially change a
Portfolio's investment exposure to changes in currency exchange rates, and
could result in losses to the Portfolio if currencies do not perform as GW
Capital Management or the sub-adviser anticipates. For example, if a
currency's value rose at a time when GW Capital Management or the sub-adviser
had hedged a Portfolio by selling that currency in exchange for dollars, the
Portfolio would be unable to participate in the currency's appreciation. If GW
Capital Management or a sub-adviser hedges currency exposure through proxy
hedges, a Portfolio could realize currency losses from the hedge and the
security position at the same time if the two currencies do not move in
tandem. Similarly, if GW Capital Management or a sub-adviser increases a
Portfolio's exposure to a foreign currency, and that currency's value declines,
the Portfolio will realize a loss. There is no assurance that GW Capital
Management's or a sub-adviser's use of currency management strategies will be
advantageous to the Portfolios or that it will hedge at an appropriate time.

Foreign Securities. Certain Portfolios may invest in foreign securities and
securities issued by U.S. entities with substantial foreign operations in a
manner consistent with its investment objective and policies. Such foreign
investments may involve significant risks in addition to those risks normally
associated with U.S. equity investments.

There may be less information publicly available about a foreign corporate or
government issuer than about a U.S. issuer, and foreign corporate issuers are
not generally subject to accounting, auditing and financial reporting standards
and practices comparable to those in the United States. The securities of some
foreign issuers are less liquid and at times more volatile than securities of
comparable U.S. issuers. Foreign brokerage commissions and securities custody
costs are often higher than those in the United States, and judgments against
foreign entities may be more difficult to obtain and enforce. With respect to
certain foreign countries, there is a possibility of governmental expropriation
of assets, confiscatory taxation, political or financial instability and
diplomatic developments that could affect the value of investments in those
countries. The receipt of interest on foreign government securities may depend
on the availability of tax or other revenues to satisfy the issuer's
obligations.

A Portfolio's investments in foreign securities may include investments in
countries whose economies or securities markets are not yet highly developed.
Special considerations associated with these investments (in addition to the
considerations regarding foreign investments generally) may include, among
others, greater political uncertainties, an economy's dependence on revenues
from particular commodities or on international aid or developmental
assistance, currency transfer restrictions, illiquid markets, delays and
disruptions in securities settlement procedures.

Most foreign securities in a Portfolio will be denominated in foreign
currencies or traded in securities markets in which settlements are made in
foreign currencies. Similarly, any income on such securities is generally paid
to a Portfolio in foreign currencies. The value of these foreign currencies
relative to the U.S. dollar varies continually, causing changes in the dollar
value of a Portfolio's investments (even if the price of the investments is
unchanged) and changes in the dollar value of a Portfolio's income available
for distribution to its shareholders. The effect of changes in the dollar
value of a foreign currency on the dollar value of a Portfolio's assets and on
the net investment income available for distribution may be favorable or
unfavorable.

A Portfolio may incur costs in connection with conversions between various
currencies. In addition, a Portfolio may be required to liquidate portfolio
assets, or may incur increased currency conversion costs, to compensate for a
decline in the dollar value of a foreign currency occurring between the time
when a Portfolio declares and pays a dividend, or between the time when a
Portfolio accrues and pays an operating expense in U.S. dollars.

American Depository Receipts ("ADRs"), as well as other "hybrid" forms of ADRs
including European Depository Receipts and Global Depository Receipts, are
certificates evidencing ownership of shares of a foreign issuer. These
certificate are issued by depository banks and generally trade on an
established market in the United States or elsewhere. The underlying shares
are held in trust by a custodian bank or similar financial institution in the
issuer's home country. The depository bank may not have physical custody of
the underlying security at all times and may charge fees for various services,
including forwarding dividends and interest and corporate actions. ADRs are an
alternative to directly purchasing the underlying foreign securities in their
national markets and currencies. However, ADRs continue to be subject to the
risks associated with investing directly in foreign securities. These risks
include foreign exchange risks as well as the political and economic risks of
the underlying issuer's country.

Futures. See "Futures and Options" below.

High Yield-High Risk Debt Securities ("Junk Bonds"). Lower-quality debt
securities have poor protection with respect to the payment of interest and
repayment of principal, or may be in default. These securities are often
considered to be speculative and involve greater risk of loss or price changes
due to changes in the issuer's capacity to pay. The market prices of
lower-quality debt securities may fluctuate more than those of higher-quality
debt securities and may decline significantly in periods of general economic
difficulty, which may follow periods of rising interest rates.

The market for lower-quality debt securities may be thinner and less active
than that for higher-quality debt securities, which can adversely affect the
prices at which the former are sold. Adverse publicity and changing investor
perceptions may affect the liquidity of lower-quality debt securities and the
ability of outside pricing
services to value lower-quality debt securities.

Because the risk of default is higher for lower-quality debt securities,
research and credit analysis are an especially important part of managing
securities of this type. GW Capital Management and its sub-advisers will
attempt to identify those issuers of high-yielding securities whose financial
condition is adequate to meet future obligations, has improved, or is expected
to improve in the future. Analysis will focus on relative values based on such
factors as interest or dividend coverage, asset coverage, earnings prospects,
and the experience and managerial strength of the issuer.

A Portfolio may choose, at its expense or in conjunction with others, to pursue
litigation or otherwise to exercise its rights as a security holder to seek to
protect the interests of security holders if it determines this to be in the
best interest of the Portfolio's shareholders.

Hybrid Instruments. Hybrid instruments have recently been developed and combine
the elements of futures contracts or options with those of debt, preferred
equity or a depository instrument. Often these hybrid instruments are indexed to
the price of a commodity, particular currency, or a domestic or foreign debt or
equity securities index. Hybrid instruments may take a variety of forms,
including, but not limited to, debt instruments with interest or principal
payments or redemption terms determined by reference to the value of a currency
or commodity or securities index at a future point in time, preferred stock with
dividend rates determined by reference to the value of a currency, or
convertible securities with the conversion terms related to a particular
commodity. The risks associated with hybrid instruments reflect a combination of
the risks of investing in securities, options, futures and currencies, including
volatility and lack of liquidity. Further, the prices of the hybrid instrument
and the related commodity or currency may not move in the same direction or at
the same time.

Illiquid Securities. Each Portfolio may invest up to 15% of its net assets in
illiquid securities, except the Money Market Portfolio which may invest up to
10% of its net assets in illiquid securities. The term "illiquid securities"
means securities that cannot be sold in the ordinary course of business within
seven days at approximately the price used in determining a Portfolio's net
asset value. Under the supervision of the Board of Directors, GW Capital
Management determines the liquidity of portfolio securities and, through
reports from GW Capital Management, the Board of Directors monitors investments
in illiquid securities. Certain types of securities are considered generally to
be illiquid. Included among these are "restricted securities" which are
securities whose public resale is subject to legal restrictions. However,
certain types of restricted securities (commonly known as "Rule 144A
securities") that can be resold to qualified institutional investors may be
treated as liquid if they are determined to be readily marketable pursuant to
policies and guidelines of the Board of Directors.

A Portfolio may be unable to sell illiquid securities when desirable or may be
forced to sell them at a price that is lower than the price at which they are
valued or that could be obtained if the securities were more liquid. In
addition, sales of illiquid securities may require more time and may result in
higher dealer discounts and other selling expenses than do sales of securities
that are not illiquid. Illiquid securities may also be more difficult to value
due to the unavailability of reliable market quotations for such securities.

Interest Rate Transactions. Interest rate swaps and interest rate caps and
floors are types of hedging transactions which are utilized to attempt to
protect the Portfolio against and potentially benefit from fluctuations in
interest rates and to preserve a return or spread on a particular investment or
portion of the Portfolio's holdings. These transactions may also be used to
attempt to protect against possible declines in the market value of the
Portfolio's assets resulting from downward trends in the debt securities markets
(generally due to a rise in interest rates) or to protect unrealized gains in
the value of the Portfolio's holdings, or to facilitate the sale of such
securities.

Interest rate swaps involve the exchange with another party of commitments to
pay or receive interest; e.g., an exchange of fixed rate payments for variable
rate payments. The purchase of an interest rate cap entitles the purchaser, to
the extent that a specified index exceeds a predetermined interest rate, to
receive payments of interest on a notional principal amount from the party
selling such interest rate cap. The purchase of an interest rate floor entitles
the purchaser, to the extent that a specified index falls below a predetermined
interest rate, to receive payments of interest on a notional principal amount
from the party selling such interest rate floor.

The successful utilization of interest rate transactions depends on the
Portfolio manager's ability to predict correctly the direction and degree of
movements in interest rates. If the Portfolio manager's judgment about the
direction or extent of movement in interest rates is incorrect, the Portfolio's
overall performance would be worse than if it had not entered into such
transactions. For example, if the Portfolio purchases an interest rate swap or
an interest rate floor to hedge against the expectation that interest rates will
decline but instead interest rates rise, the Portfolio would lose part or all of
the benefit of the increased payments it would receive as a result of the rising
interest rates because it would have to pay amounts to its counterparts under
the swap agreement or would have paid the purchase price of the interest rate
floor.

The swap market has grown substantially in recent years with a large number of
banks and investment banking firms acting both as principals and as agents
utilizing standardized swap documentation. Caps and floors are more recent
innovations for which standardized documentation has not yet been developed and,
accordingly, they are less liquid than swaps. Interest rate swaps, caps and
floors are considered by the Staff of the Securities and Exchange Commission to
be illiquid securities and, therefore, the Portfolio may not invest more than
15% of its assets in such instruments. Finally, there can be no assurance that
the Portfolio will be able to enter into interest rate swaps or to purchase
interest rate caps or floors at prices or on terms the Portfolio manager
believes are advantageous to the Portfolio. In addition, although the terms of
interest rate swaps, caps and floors may provide for termination, there can be
no assurance that the Portfolio will be able to terminate an interest rate swap
or to sell or offset interest rate caps or floors that it has purchased.

Investment Companies. Each Portfolio may invest in shares of mutual funds within
the limitations of the Investment Company Act of 1940 and any orders issued by
the SEC. The following discussion of mutual funds may be of particular relevance
to those who invest in the Maxim Profile I Portfolios or the Maxim Profile II
Portfolios. These Portfolios are known as "funds of funds" because they seek to
achieve their investment objectives by investing in other mutual funds (the
"Underlying Portfolios"). The Maxim Profile I Portfolios and Maxim Profile II
Portfolios each may invest in both GW Capital Management-advised and non-GW
Capital Management-advised Underlying Portfolios.

The Underlying Portfolios' investments, the different types of securities the
Underlying Portfolios typically invest in, the investment techniques they may
use and the risks normally associated with these investments are discussed
below. Not all investments that may be made by Underlying Portfolios are
currently known. Not all Underlying Portfolios discussed below are eligible
investments for each Portfolio. A Portfolio will invest in Underlying Portfolios
that are intended to help achieve its investment objective.

Mutual Funds are registered investment companies, which may issue and redeem
their shares on a continuous basis (open-end mutual funds) or may offer a fixed
number of shares usually listed on an exchange (closed-end mutual funds). Mutual
funds generally offer investors the advantages of diversification and
professional investment management, by combining shareholders' money and
investing it in various types of securities, such as stocks, bonds and money
market securities. Mutual funds also make various investments and use certain
techniques in order to enhance their performance. These may include entering
into delayed-delivery and when-issued securities transactions or swap
agreements; buying and selling futures contracts, illiquid and restricted
securities and repurchase agreement and borrowing or lending money and/or
portfolio securities. The risks of investing in mutual funds generally reflect
the risks of the securities in which the mutual funds invest and the investment
techniques they may employ. Also, mutual funds charge fees and incur operating
expenses.

Stock Funds typically seek growth of capital and invest primarily in equity
securities. Other investments generally include debt securities, such as U.S.
government securities, and some illiquid and restricted securities. Stock funds
typically may enter into delayed-delivery or when-issued issued securities
transactions, repurchase agreements, swap agreements and futures and options
contracts. Some stock funds invest exclusively in equity securities and may
focus in a specialized segment of the stock market, like stocks of small
companies or foreign issuers, or may focus in a specific industry or group of
industries. The greater a fund's investment in stock, the greater exposure it
will have to stock risk and stock market risk. Stock risk is the risk that a
stock may decline in price over the short or long term. When a stock's price
declines, its market value is lowered even though the intrinsic value of the
company may not have changed. Some stocks, like small company and international
stocks, are more sensitive to stock risk than others. Diversifying investments
across companies can help to lower the stock risk of a portfolio. Market risk is
typically the result of a negative economic condition that affects the value of
an entire class of securities, such as stocks or bonds. Diversification among
various asset classes, such as stocks, bonds and cash, can help to lower the
market risk of a portfolio. A stock fund's other investments and use of
investment techniques also will affect its performance and portfolio value.

Small-Cap Stock Funds seek capital growth and invest primarily in equity
securities of companies with smaller market capitalization. Small-cap stock
funds generally make similar types of investments and employ similar types of
techniques as other stock funds, except that they focus on stocks issued by
companies at the lower end of the total capitalization of the U.S. stock market.
These stocks tend to be more volatile than stocks of companies of larger
capitalized companies. Small-cap stock funds, therefore, tend to be more
volatile than stock funds that invest in mid- or large-cap stocks, and are
normally recommended for long-term investors.

International Stock Funds seek capital growth and invest primarily in equity
securities of foreign issuers. Global stock funds invest primarily in equity
securities of both domestic and foreign issuers. International and global stock
funds generally make similar types of investments and employ similar types of
investment techniques as other stock funds, except they focus on stocks of
foreign issuers. Some international stock and global stock funds invest
exclusively in foreign securities. Some of these funds invest in securities of
issuers located in emerging or developing securities markets. These funds have
greater exposure to the risks associated with international investing.
International and global stock funds also may invest in foreign currencies and
depositary receipts and enter into futures and options contracts on foreign
currencies and forward foreign currency exchange contracts.

Bond Funds seek high current income by investing primarily in debt securities,
including U.S. government securities, corporate bonds, stripped securities and
mortgage- and asset-backed securities. Other investments may include some
illiquid and restricted securities. Bond funds typically enter into
delayed-delivery or when-issued securities transactions, repurchase agreements,
swap agreements and futures contracts. Bond funds are subject to interest rate
and income risks as well as credit and prepayment risks. When interest rates
fall, the prices of debt securities generally rise, which may affect the values
of bond funds and their yields. For example, when interest rates fall, issuers
tend to pre-pay their outstanding debts and issue new ones paying lower interest
rates. A bond fund holding these securities would be forced to invest the
principal received from the issuer in lower yield debt securities. Conversely,
in a rising interest rate environment, prepayment on outstanding debt securities
generally will not occur. This risk is known as extension risk and may affect
the value of a bond fund if the value of its securities are depreciated as a
result of the higher market interest rates. Bond funds also are subject to the
risk that the issuers of the securities in their portfolios will not make timely
interest and/or principal payments or fail to make them at all.

Money Market Funds typically seek current income and a stable share price of
$1.00 by investing in money market securities. Money market securities include
commercial paper and short-term U.S. government securities, certificates of
deposit, banker's acceptances and repurchase agreements. Some money market
securities may be illiquid or restricted securities or purchased on a
delayed-delivery or when-issued basis.

Lending of Portfolio Securities. Subject to Investment Limitations described
above for all Portfolios, each Portfolio of the Fund from time-to-time may lend
its portfolio securities to brokers, dealers and financial institutions.
Securities lending allows a fund to retain ownership of the securities loaned
and, at the same time, to earn additional income.

Because there may be delays in the recovery of loaned securities, or even a loss
of rights in collateral supplied should the borrower fail financially, loans
will be made only to parties deemed by GW Capital Management to be of good
standing. Furthermore, they will only be made if, in GW Capital Management's
judgment, the consideration to be earned from such loans would justify the risk.

GW Capital Management understands that it is the current view of the SEC Staff
that a Fund may engage in loan transactions only under the following conditions:
(1) the fund must receive 100% collateral in the form of cash or cash
equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the
borrower must increase the collateral whenever the market value of the
securities loaned (determined on a daily basis) rises above the value of the
collateral; (3) after giving notice, the fund must be able to terminate the loan
at any time; (4) the fund must receive reasonable interest on the loan or a flat
fee from the borrower, as well as amounts equivalent to any dividends, interest,
or other distributions on the securities loaned and to any increase in market
value; (5) the fund may pay only reasonable custodian fees in connection with
the loan; and (6) the Board of Directors must be able to vote proxies on the
securities loaned, either by terminating the loan or by entering into an
alternative arrangement with the borrower.

Cash received through loan transactions may be invested in other eligible
securities. Investing this cash subjects that investment, as well as the
security loaned, to market forces (i.e., capital appreciation or depreciation).

Lower Quality Debt Securities. Lower-quality debt securities have poor
protection with respect to the payment of interest and repayment of principal,
or may be in default. These securities are often considered to be speculative
and involve greater risk of loss or price changes due to changes in the issuer's
capacity to pay. The market prices of lower-quality debt securities may
fluctuate more than those of higher-quality debt securities and may decline
significantly in periods of general economic difficulty, which may follow
periods of rising interest rates.

The market for lower-quality debt securities may be thinner and less active than
that for higher-quality debt securities, which can adversely affect the prices
at which the former are sold. Adverse publicity and changing investor
perceptions may affect the liquidity of lower-quality debt securities and the
ability of outside pricing services to value lower-quality debt securities.

Because the risk of default is higher for lower-quality debt securities,
research and credit analysis are an especially important part of managing
securities of this type. GW Capital Management and its sub-advisers will attempt
to identify those issuers of high-yielding securities whose financial condition
is adequate to meet future obligations, has improved, or is expected to improve
in the future. Analysis will focus on relative values based on such factors as
interest or dividend coverage, asset coverage, earnings prospects, and the
experience and managerial strength of the issuer.

A Fund may choose, at its expense or in conjunction with others, to pursue
litigation or otherwise to exercise its rights as a security holder to seek to
protect the interests of security holders if it determines this to be in the
best interest of the Fund's shareholders.

Money Market Instruments and Temporary Investment Strategies. In addition to
the Money Market Portfolio, the other Portfolios, except the Maxim Profile I
Portfolios and the Maxim Profile II Portfolios, each may hold cash or cash
equivalents and may invest in short-term, high-quality debt instruments (that
is in "money market instruments") as deemed appropriate by GW Capital
Management or the applicable sub-adviser, or may invest any or all of their
assets in money market instruments as deemed necessary by GW Capital Management
or the applicable sub-adviser for temporary defensive purposes.

The types of money market instruments in which such Portfolios may invest
include, but are not limited to: (1) bankers' acceptances; (2) obligations of
U.S. and non-U.S. governments and their agencies and instrumentalities; (3)
short-term corporate obligations, including commercial paper, notes, and bonds;
(4) obligations of U.S. banks, non-U.S. branches of such bank (Eurodollars),
U.S. branches and agencies of non-U.S. banks (Yankee dollars), and non-U.S.
branches of non-U.S. banks; (5) asset-backed securities; and (6) repurchase
agreements.

Mortgage-Backed Securities. Mortgage backed securities may be issued by
government and non-government entities such as banks, mortgage lenders, or
other financial institutions. A mortgage security is an obligation of the
issuer backed by a mortgage or pool of mortgages or a direct interest in an
underlying pool of mortgages. Some mortgage-backed securities, such as
collateralized mortgage obligations or CMOs, make payments of both principal
and interest at a variety of intervals; others make semi-annual interest
payments at a predetermined rate and repay principal at maturity (like a
typical bond). Mortgage-backed securities are based on different types of
mortgages including those on commercial real estate or residential properties.
Other types of mortgage-backed securities will likely be developed in the
future, and the investment in such securities may be made if deemed consistent
with investment objectives and policies.

The value of mortgage-backed securities may change due to shifts in the
market's perception of issuers. In addition, regulatory or tax changes may
adversely affect the mortgage securities market as a whole. Non-government
mortgage-backed securities may offer higher yields than those issued by
government entities, but also may be subject to greater price changes than
government issues. Mortgage-backed securities are subject to prepayment risk.
Prepayment, which occurs when unscheduled or early payments are made on the
underlying mortgages, may shorten the effective maturities of these securities
and may lower their total returns.

Options. See "Futures and Options" below.

Preferred Stock. Preferred stock is a class of equity or ownership in an
issuer that pays dividends at a specified rate and that has precedence over
common stock in the payment of dividends. In the event an issuer is liquidated
or declares bankruptcy, owners of bonds take precedence over the claims of
those who own preferred and common stock.

Repurchase Agreements. Repurchase agreements involve an agreement to purchase
a security and to sell that security back to the original seller at an
agreed-upon price. The resale price reflects the purchase price plus an
agreed-upon incremental amount which is unrelated to the coupon rate or
maturity of the purchased security. As protection against the risk that the
original seller will not fulfill its obligation, the securities are held in a
separate account at a bank, marked-to-market daily, and maintained at a value
at least equal to the sale price plus the accrued incremental amount. The value
of the security purchased may be more or less than the price at which the
counterparty has agreed to purchase the security. In addition, delays or losses
could result if the other party to the agreement defaults or becomes insolvent.
A Portfolio will engage in repurchase agreement transactions with parties whose
creditworthiness has been reviewed and found satisfactory by GW Capital
Management.

Reverse Repurchase Agreements. Reverse repurchase agreements involve the sale of
securities held by the seller, with an agreement to repurchase the securities at
an agreed upon price, date and interest payment. The seller will use the
proceeds of the reverse repurchase agreements to purchase other money market
securities either maturing, or under an agreement to resell, at a date
simultaneous with or prior to the expiration of the reverse repurchase
agreement. The seller will utilize reverse repurchase agreements when the
interest income to be earned from the investment of the proceeds from the
transaction is greater than the interest expense of the reverse repurchase
transaction. A Portfolio will enter into reverse repurchase agreements with
parties whose creditworthiness has been reviewed and found satisfactory by GW
Capital Management. Such transactions may increase fluctuations in the market
value of fund assets and may be viewed as a form of leverage.

Short Sales "Against the Box." Short sales "against the box" are short sales
of securities that a Portfolio owns or has the right to obtain (equivalent in
kind or amount to the securities sold short). If a Portfolio enters into a
short sale against the box, it will be required to set aside securities
equivalent in kind and amount to the securities sold short (or securities
convertible or exchangeable into such securities) and will be required to hold
such securities while the short sale is outstanding. The Portfolio will incur
transaction costs, including interest expenses, in connection with opening,
maintaining, and closing short sales against the box.

Stripped Treasury Securities. Certain Portfolios may invest in zero-coupon
bonds. These securities are U.S. Treasury bonds which have been stripped of
their unmatured interest coupons, the coupons themselves, and receipts or
certificates representing interests in such stripped debt obligations and
coupons. Interest is not paid in cash during the term of these securities, but
is accrued and paid at maturity. Such obligations have greater price
volatility than coupon obligations and other normal interest-paying securities,
and the value of zero coupon securities reacts more quickly to changes in
interest rates than do coupon bonds. Since dividend income is accrued
throughout the term of the zero coupon obligation, but not actually received
until maturity, a Portfolio may have to sell other securities to pay said
accrued dividends prior to maturity of the zero coupon obligation. Zero coupon
securities are purchased at a discount from face value, the discount reflecting
the current value of the deferred interest. The discount is taxable even
though there is no cash return until maturity.

Structured Securities. Structured securities are interests in entities
organized and operated solely for the purpose of restructuring the investment
characteristics of sovereign debt obligations. This type of restructuring
involves the deposit with or purchase by an entity, such as a corporation or
trust, of specified instruments (such as commercial bank loans or Brady bonds)
and the issuance by that entity of one or more classes of securities backed by,
or representing interests in, the underlying instruments. The cash flow on the
underlying instruments may be apportioned among the newly-issued structured
securities to create securities with different investment characteristics such
as varying maturities, payment priorities and interest rate provisions, and the
extent of the payments made with respect to structured securities is dependent
on the extent of the cash flow on the underlying instruments. The credit risk
generally will be equivalent to that of the underlying instruments.

Structured securities may be either subordinated or unsubordinated to the right
of payment of another class. Subordinated structured securities typically have
higher yields and present greater risks than unsubordinated structured
securities.

Certain issuers of structured securities may be deemed to be "investment
companies" as defined in the Investment Company Act of 1940, as amended (the
"1940 Act"). As a result, any investment in these structured securities may be
limited by the restrictions contained in the 1940 Act.

Swap Deposit. Swap deposits are foreign currency short-term investments
consisting of a foreign exchange contract, a short-term note in foreign currency
and a foreign exchange forward contract that is totally hedged in U.S. currency.
This type of investment can produce competitive yield in U.S. dollars without
incurring risks of foreign exchange.

Time Deposits. A time deposit is a deposit in a commercial bank for a
specified period of time at a fixed interest rate for which a negotiable
certificate is not received.

U.S. Government Securities. These are securities issued or guaranteed as to
principal and interest by the U.S. government or its agencies or
instrumentalities. U.S. Treasury bills and notes and certain agency
securities, such as those issued by the Government National Mortgage
Association, are backed by the full faith and credit of the U.S. government.
Securities of other government agencies and instrumentalities are not backed by
the full faith and credit of U.S. government. These securities have different
degrees of government support and may involve the risk of non-payment of
principal and interest. For example, some are supported by the agency's right
to borrow from the U.S. Treasury under certain circumstances, such as those of
the Federal Home Loan Banks. Others are supported by the discretionary
authority of the U.S. government to purchase certain obligations of the agency
or instrumentality, such as those of the Federal National Mortgage
Association. Still other are supported only by the credit of the agency that
issued them, such as those of the Student Loan Marketing Association. The U.S.
government and its agencies and instrumentalities do not guarantee the market
value of their securities, and consequently, the value of such securities may
fluctuate.

Variable Amount Master Demand Notes. A variable amount master demand note is a
note which fixes a minimum and maximum amount of credit and provides for
lending and repayment within those limits at the discretion of the lender.
Before investing in any variable amount master demand notes, the liquidity of
the issuer must be determined through periodic credit analysis based upon
publicly available information.

Variable or Floating Rate Securities. These securities have interest rates
that are adjusted periodically, or which "float" continuously according to
formulas intended to stabilize their market values. Many of them also carry
demand features that permit the Portfolios to sell them on short notice at par
value plus accrued interest. When determining the maturity of a variable or
floating rate instrument, the Portfolio may look to the date the demand feature
can be exercised, or to the date the interest rate is readjusted, rather than
to the final maturity of the instrument.

Warrants. Warrants basically are options to purchase equity securities at a
specific price valid for a specific period of time. They do not represent
ownership of the securities, but only the right to buy them. Warrants are
speculative in that they have no voting rights, pay no dividends and have no
rights with respect to the assets of the corporation issuing them. Warrants
differ from call options in that warrants are issued by the issuer of the
security which may be purchased on their exercise, whereas call options may be
written or issued by anyone. The prices of warrants do not necessarily move
parallel to the prices of the underlying securities.

When-Issued and Delayed-Delivery Transactions. When-issued or delayed-delivery
transactions arise when securities are purchased or sold with payment and
delivery taking place in the future in order to secure what is considered to be
an advantageous price and yield at the time of entering into the transaction.
While the Portfolios generally purchase securities on a when-issued basis with
the intention of acquiring the securities, the Portfolios may sell the
securities before the settlement date if GW Capital Management or the
applicable sub-adviser deems it advisable. At the time a Portfolio makes the
commitment to purchase securities on a when-issued basis, the Portfolio will
record the transaction and thereafter reflect the value, each day, of such
security in determining the net asset value of the Portfolio. At the time of
delivery of the securities, the value may be more or less than the purchase
price. A Portfolio will maintain, in a segregated account, liquid assets
having a value equal to or greater than the Portfolio's purchase commitments;
likewise a Portfolio will segregate securities sold on a delayed-delivery basis.

Futures and Options

Futures Contracts. When a Portfolio purchases a futures contract, it agrees to
purchase a specified underlying instrument at a specified future date. When a
Portfolio sells a futures contract, it agrees to sell the underlying instrument
at a specified future date. The price at which the purchase and sale will take
place is fixed when the Portfolio enters into the contract. Futures can be
held until their delivery dates, or can be closed out before then if a liquid
secondary market is available.

The value of a futures contract tends to increase and decrease in tandem with
the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase a Portfolio's exposure to positive and negative
price fluctuations in the underlying instrument, much as if it had purchased
the underlying instrument directly. When a Portfolio sells a futures contract,
by contrast, the value of its futures position will tend to move in a direction
contrary to the market.

Futures Margin Payments. The purchaser or seller of a futures contract is not
required to deliver or pay for the underlying instrument unless the contract is
held until the delivery date. However, both the purchaser and seller are
required to deposit "initial margin" with a futures broker, known as a futures
commission merchant ("FCM"), when the contract is entered into. Initial margin
deposits are typically equal to a percentage of the contract's value. If the
value of either party's position declines, that party will be required to make
additional "variation margin" payments to settle the change in value on a daily
basis. The party that has a gain may be entitled to receive all or a portion
of this amount. Initial and variation margin payments do not constitute
purchasing securities on margin for purposes of a Portfolio's investment
limitations. In the event of a bankruptcy of an FCM that holds margin on
behalf of a Portfolio, the Portfolio may be entitled to return of margin owed
to it only in proportion to the amount received by the FCM's other customers,
potentially resulting in losses to the Portfolio.

Index Futures Contracts. An index futures contract obligates the seller to
deliver (and the purchaser to take) an amount of cash equal to a specific
dollar amount times the difference between the value of a specific index at the
close of the last trading day of the contract and the price at which the
agreement is made. No physical delivery of the underlying security in the
index is made.

Purchasing Put and Call Options. By purchasing a put option, a Portfolio
obtains the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the Portfolio
pays the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. The Portfolio
may terminate its position in a put option it has purchased by allowing it to
expire or by exercising the option. If the option is allowed to expire, the
Portfolio will lose the entire premium it paid. If the Portfolio exercises the
option, in completes the sale of the underlying instrument at the strike
price. A Portfolio may also terminate a put option position by closing it out
in the secondary market (that is by selling it to another party) at its current
price, if a liquid secondary market exists.

The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price does
not fall enough to offset the cost of purchasing the option, a put buyer can
expect to suffer a loss (limited to the amount of the premium paid, plus
related transaction costs).

The features of call options are essentially the same as those of put options,
except that the purchaser of a call option obtains the right to purchase,
rather than sell, the underlying instrument at the option's strike price. A
call buyer typically attempts to participate in potential price increases of
the underlying instrument with risk limited to the cost of the option if
security prices fall. At the same time, the buyer can expect to suffer a loss
if security prices do not rise sufficiently to offset the cost of the option.

Writing Put and Call Options. When a Portfolio writes a put option, it takes
the opposite side of the transaction from the option's purchaser. In return
for receipt of the premium, the Portfolio assumes the obligation to pay the
strike price for the option's underlying instrument if the other party to the
option chooses to exercise it. When writing an option on a futures contract,
the Portfolio will be required to make margin payments to an FCM as described
above for futures contracts. A Portfolio may seek to terminate its position in
a put option it writes before exercise by closing out the option in the
secondary market at is current price. If the secondary market is not liquid
for a put option the Portfolio has written, however, the Portfolio must
continue to be prepared to pay the strike price while the option is
outstanding, regardless of price changes, and must continue to set aside assets
to cover its position.

If security prices rise, a put writer would generally expect to profit,
although its gain would be limited to the amount of the premium it received.
If security prices remain the same over time, it is likely that the writer will
also profit, because it should be able to close out the option at a lower
price. If security prices fall, the put writer would expect to suffer a loss
from purchasing the underlying instrument directly, which can exceed the amount
of the premium received.

Writing a call option obligates a Portfolio to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those of
writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer can mitigate the effect of a price decline. At the same
time, because a call writer gives up some ability to participate in security
price increases.

OTC Options. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter ("OTC") options (options not traded
on exchanges) generally are established through negotiation with the other
party to the option contract. While this type of arrangement allows the
Portfolios greater flexibility to tailor an option to its needs, OTC options
generally involve greater credit risk than exchange-traded options, which are
guaranteed by the clearing organization of the exchanges where they are traded.

Options and Futures Relating to Foreign Currencies. Currency futures contracts
are similar to forward currency exchange contracts, except that they are traded
on exchanges (and have margin requirements) and are standardized as to contract
size and delivery date. Most currency futures contracts call for payment or
delivery in U.S. dollars. The underlying instrument of a currency option may
be a foreign currency, which generally is purchased or delivered in exchange
for U.S. dollars, or may be a futures contract. The purchaser of a currency
call option obtains the right to purchase the underlying currency, and the
purchaser of a currency put obtains the right to sell the underlying currency.

The uses and risks of currency options and futures are similar to options and
futures relating to securities or indices, as discussed above. Certain
Portfolios may purchase and sell currency futures and may purchase and write
currency options to increase or decrease their exposure to different foreign
currencies. A Portfolio may also purchase and write currency options in
conjunction with each other or with currency futures or forward contracts.
Currency futures and options values can be expected to correlate with exchange
rates, but may not reflect other factors that affect the value of a Portfolio's
investments. A currency hedge, for example, should protect a Yen-denominated
security from a decline in the Yen, but will not protect a Portfolio against a
price decline resulting from deterioration in the issuer's creditworthiness.
Because the value of a Portfolio's foreign-denominated investments changes in
response to many factors other than exchange rates, it may not be possible to
match the amount of currency options and futures to the value of the
Portfolio's investments exactly over time.

Asset Coverage for Futures and Options Positions. The Portfolios will comply
with guidelines established by the Securities and Exchange Commission with
respect to coverage of options and futures strategies by mutual funds, and if
the guidelines so require will set aside appropriate liquid assets in a
segregated custodial account in the amount prescribed. Securities held in a
segregated account cannot be sold while the futures or option strategy is
outstanding, unless they are replaced with other suitable assets. As a result,
there is a possibility that segregation of a large percentage of a Portfolio's
assets could impede portfolio management or the Portfolio's ability to meet
redemption requests or other current obligations.

Combined Positions. A Portfolio may purchase and write options in combination
with each other, or in combination with futures or forward contracts, to adjust
the risk and return characteristics of the overall position. For example, a
Portfolio may purchase a put option and write a call option on the same
underlying instrument, in order to construct a combined position whose risk and
return characteristics are similar to selling a futures contract. Another
possible combined position would involve writing a call option at one strike
price and buying a call option at a lower price, in order to reduce the risk of
the written call option in the event of a substantial price increase. Because
combined options positions involve multiple trades, they result in higher
transaction costs and may be more difficult to open and close out.

Correlation of Price Changes. Options and futures prices can also diverge from
the prices of their underlying instruments, even if the underlying instruments
match a Portfolio's investments well. Options and futures prices are affected
by such factors as current and anticipated short-term interest rates, changes
in volatility of the underlying instrument, and the time remaining until
expiration of the contract, which may not affect security prices the same way.
Imperfect correlation may also result from differing levels of demand in the
options and futures markets and the securities markets, from structural
differences in how options and futures and securities are traded, or from
imposition of daily price fluctuation limits or trading halts. A Portfolio may
purchase or sell options and futures contracts with a greater or lesser value
than the securities it wishes to hedge or intends to purchase in order to
attempt to compensate differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price changes
in a Portfolio's options or futures positions are poorly correlated with its
other investments, the positions may fail to produce anticipated gains or
result in losses that are not offset by gains in other investments.

Limitations on Futures and Options Transactions. The Fund has filed a notice
of eligibility for exclusion from the definition of the term "commodity pool
operator" with the Commodity Futures Trading Commission and the National
Futures Association, which regulate trading in the futures markets. The
Portfolios intend to comply with Rule 4.5 under the Commodity Exchange Act,
which limits the extent to which the Portfolios can commit assets to initial
margin deposits and option premiums. Accordingly, to the extent that a
Portfolio may invest in futures contracts and options, a Portfolio may only
enter into futures contract and option positions for other than bona fide
hedging purposes to the extent that the aggregate initial margin and premiums
required to establish such positions will not exceed 5% of the liquidation
value of the Portfolio. This limitation on a Portfolio's permissible
investments in futures contracts and options is not a fundamental investment
limitation and may be changed as regulatory agencies permit.

Liquidity of Options and Futures Contracts. There is no assurance that a
liquid secondary market will exist for any particular option or futures
contract at any particular time. Options may have relatively low trading
volume and liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily price
fluctuation limits for options and futures contracts, and may halt trading if a
contract's price moves upward or downward more than the limit in a given day.
On volatile trading days when the price fluctuation limit is reached or a
trading halt is imposed, it may be impossible for a Portfolio to enter into new
positions or close out existing positions. If the secondary market for a
contract is not liquid because of price fluctuation limits or otherwise, it
could prevent prompt liquidation of unfavorable positions, and potentially
could require a Portfolio to continue to hold a position until delivery or
expiration regardless of changes in its value. As a result, a Portfolio's
access to assets held to cover its options or futures positions could also be
impaired.

MANAGEMENT OF THE FUND

The Fund is governed by the Board of Directors. The Board is responsible for
overall management of the Funds' business affairs. The Directors meet at least 4
times during the year to, among other things, oversee the Funds' activities,
review contractual arrangements with companies that provide services to the
Funds, and review performance.

Directors and Officers

The directors and executive officers of the Fund, their ages, position(s) with
the Fund, their principal occupations during the past 5 years (or as otherwise
indicated) and their positions with affiliates of the Fund or its principal
underwriter are set forth below. The business address of each director and
officer is 8515 East Orchard Road, Englewood, Colorado 80111 (unless otherwise
indicated). Those directors and officers who are "interested persons" (as
defined in the Investment Company Act of 1940, as amended) by virtue of their
affiliation with either the Fund or GW Capital Management are indicated by an
asterisk (*).

Rex Jennings (75), Director; President Emeritus, Denver Metro Chamber of
Commerce; Trustee, Orchard Series Fund.

Richard P. Koeppe (68), Director; Retired Superintendent, Denver Public Schools,
Trustee, Orchard Series Fund.

*Douglas L. Wooden (43), Director; Executive Vice President, Financial Services
(1998 to Present); Senior Vice President, Financial Services of GWL&A
(1996-1998);Senior Vice President, Chief Financial Officer of GWL&A (1991-1996);
Trustee, Orchard Series Fund; Director, GW Capital Management.

*James D. Motz (50), Director and President; Executive Vice President, Employee
Benefits of GWL&A (1997 to present) Senior Vice President, Employee Benefits of
GWL&A (1991-1997); Trustee and President, Orchard Series Fund; Director, GW
Capital Management.

Sanford Zisman (60), Director; Attorney, Zisman & Ingraham, P.C.; Trustee,
Orchard Series Fund.

*David G. McLeod (37), Treasurer; Vice President, Investment Operations, (1998
to Present) Assistant Vice President, Investment Administration of GWL&A (1994
to 1998); Manager, Securities and Equities Administration of GWL&A (1992-1994);
Treasurer, Orchard Series Fund; Director, GW Capital Management.

*Bruce Hatcher (36), Assistant Treasurer; Manager, Investment Company
Administration (1998 to present); Associate Manager, Separate Account
Administration of GWL&A (1993-1998); Assistant Treasurer, Maxim Series Fund.

*Beverly A. Byrne (44), Secretary; Vice President, Counsel and Associate
Secretary of GWL&A (2000 to Present) Assistant Vice President, Associate Counsel
and Assistant Secretary of GWL&A (1997 - 1999); Assistant Counsel and Assistant
Secretary of GWL&A (1993-1997); Chief Legal & Compliance Counsel of One Orchard
Equities, Inc., the principal underwriter of the Maxim Series Fund; Secretary,
Orchard Series Fund, an affiliated fund; Director, GW Capital Management.

Compensation

The Fund pays no salaries or compensation to any of its officers or Directors
affiliated with GW Capital Management or its affiliates. The chart below sets
forth the annual fees paid or expected to be paid to the non-interested
Directors and certain other information.

R.P. Koeppe R. Jennings S. Zisman
Compensation Received from the Fund $10,000 $10,000
$10,000

Pension or Retirement Benefits Accrued
as Fund Expense* $0 $0 $0

Estimated Annual Benefits Upon Retirement $0 $0 $0

Total Compensation Received from the
Fund and All Affiliated Funds*

$15,000 $15,000 $15,000

* As of March 31, 2000, there were forty-one funds for which the Directors serve
as Directors or Trustees of which thirty-seven are Portfolios of the Fund.

As of December 31, 1999, no person owns of record or beneficially 5% or more of
the shares outstanding of the Fund or any Portfolio thereof other than separate
accounts of GWL&A as described in "Purchase and Redemption of Shares."
Therefore, GWL&A could be deemed to control each Fund as the term "control" is
defined in the Investment Company Act of 1940. As of the date of this Statement
of Additional Information, the directors and officers of the Fund, as a group,
owned of record or beneficially less than 1% of the outstanding share of each
Fund.

Code of Ethics

The Fund, GW Capital Management and One Orchard Equities have each adopted a
code of ethics addressing investing by their personnel. The code permits
personnel to invest in securities, including securities held by the Fund under
certain circumstances. The code places appropriate restrictions on all such
investments.

INVESTMENT ADVISORY SERVICES

Investment Adviser

GW Capital Management, LLC is a Colorado limited liability company, located at
8515 East Orchard Road, Englewood, Colorado 80111, and serves as investment
adviser to the Fund pursuant to an Investment Advisory Agreement dated
December 5, 1997. GW Capital Management is a wholly-owned subsidiary of GWL&A,
which is a wholly-owned subsidiary of The Great-West Life Assurance Company
("Great-West"), a Canadian stock life insurance company. Great-West is a 99.6%
owned subsidiary of Great-West Lifeco Inc., which in turn is an 81.2% owned
subsidiary of Power Financial Corporation, Montreal, Quebec. Power Corporation
of Canada, a holding and management company, has voting control of Power
Financial Corporation of Canada. Mr. Paul Desmarais, and his associates, a
group of private holding companies, have voting control of Power Corporation of
Canada.

Investment Advisory Agreement

The Investment Advisory Agreement became effective on December 5, 1997 and as
amended effective July 26, 1999. As approved, the Agreement will remain in
effect until April 1, 2000, and will continue in effect from year to year if
approved annually by the Board of Directors including the vote of a majority
of the Directors who are not parties to the Agreement or interested persons of
any such party, or by vote of a majority of the outstanding shares of the
affected Portfolio. Any material amendment to the Agreement becomes effective
with respect to the affected Portfolio upon approval by vote of a majority of
the voting securities of that Portfolio. The agreement is not assignable and
may be terminated without penalty with respect to any Portfolio either by the
Board of Directors or by vote of a majority of the outstanding voting
securities of such Portfolio or by GW Capital Management, each on 60 days
notice to the other party.

Under the terms of investment advisory agreement with the Fund, GW Capital
Management acts as investment adviser and, subject to the supervision of the
Board of Directors, directs the investments of the Portfolios in accordance
with its investment objective, policies and limitations. GW Capital Management
also provides the Fund with all necessary office facilities and personnel for
servicing the Portfolios' investments, compensates all officers of the Fund and
all Directors who are "interested persons" of the Fund or of GW Capital
Management, and all personnel of the Fund or GW Capital Management performing
services relating to research, statistical and investment activities.

In addition, GW Capital Management, subject to the supervision of the Board of
Directors, provides the management and administrative services necessary for
the operation of the Fund. These services include providing facilities for
maintaining the Fund's organization; supervising relations with custodians,
transfer and pricing agents, accountants, underwriters and other persons
dealing with the Fund; preparing all general shareholder communications and
conducting shareholder relations; maintaining the Portfolios' records and the
registration of the Portfolios' shares under federal securities laws and making
necessary filings under state securities laws; developing management and
shareholder services for the Fund; and furnishing reports, evaluations and
analyses on a variety of subjects to the Directors.

Management Fees

Each Portfolio pays a management fee to GW Capital Management for managing its
investments and business affairs. GW Capital Management is paid monthly at an
annual rate of a Portfolio's average net assets as described in the Prospectus.

The Sub-Advisers

Templeton Investment Counsel, Inc.

Templeton Investment Counsel, Inc. ("TICI") serves as the sub-adviser to the
Maxim Templeton International Equity Portfolio pursuant to a Sub-Advisory
Agreement dated December 1, 1993. TICI is an indirect subsidiary of Templeton
Worldwide, Inc., which in turn is a direct, wholly-owned subsidiary of Franklin
Resources, Inc.

GW Capital Management is responsible for compensating TICI, which receives
monthly compensation at the annual rate of .70% on the first $25 million, .55%
on the next $25 million, .50% on the next $50 million, and .40% on all amounts
over $100 million.

Ariel Capital Management, Inc.

Ariel Capital Management, Inc. ("Ariel") serves as the sub-adviser to the Maxim
Ariel Small-Cap Value Portfolio and the Maxim Ariel MidCap Value Portfolio
pursuant to Sub-Advisory Agreements dated December 1, 1993 and February 5, 1999.
Ariel is a privately held minority-owned money manager.

GW Capital Management is responsible for compensating Ariel, which receives
monthly compensation at the annual rate of .40% of the average daily net asset
value of the Maxim Ariel Small-Cap Value Portfolio up to $5 million, .35% on the
next $10 million, .30% on the next $10 million, and .25% of such value in excess
of $25 million and 0.50% on the first $25 million of assets, 0.40% on the next
$75 million of assets and 0.30% on all amounts over $100 million of the Maxim
Ariel MidCap Value Portfolio.

T. Rowe Price Associates, Inc.

T. Rowe Price Associates, Inc. ("T. Rowe Price") serves as the sub-adviser to
the Maxim T. Rowe Price Equity/Income and Maxim T. Rowe Price MidCap Growth
Portfolios pursuant to a Sub-Advisory Agreement dated November 1, 1994 as
amended. Founded in 1937, T. Rowe Price and its affiliate managed over $179
billion for more than 8 million individual and institutional investors accounts
as of December 31, 1999.

GW Capital Management is responsible for compensating T. Rowe Price, which
receives monthly compensation for the Maxim T. Rowe Price Equity/Income
Portfolio at the annual rate of .50% on the first $20 million, .40% on the next
$30 million and .40% on all assets once total assets exceed $50 million and for
the Maxim T. Rowe Price MidCap Growth Portfolio at the annual rate of .50% on
all assets of the Portfolio.

INVESCO Funds Group, Inc.

INVESCO Funds Group, Inc. ("INVESCO") serves as the sub-adviser to the Maxim
INVESCO Small-Cap Growth, and Maxim INVESCO Balanced Portfolios pursuant to
Sub-Advisory Agreements dated November 1, 1994 and August 30, 1996. INVESCO is
an indirect wholly-owned subsidiary of AMVESCAP PLC. AMVESCAP PLC is a
publicly-traded holding company that, through its subsidiaries, engages in the
business of investment management on an international basis. AMVESCAP PLC has
approximately $357 billion in assets under management.

INVESCO Capital Management, Inc. ("ICM"), a subsidiary of INVESCO, serves as the
sub-adviser to the Maxim INVESCO ADR Portfolio pursuant to a Sub-Advisory
Agreement dated March 3, 1997.

GW Capital Management is responsible for compensating INVESCO, which receives
monthly compensation at the annual rate of .55% on the first $25 million, .50%
on the next $50 million, .40% on the next $25 million and .35% on assets over
$100 million of the Maxim INVESCO Small-Cap Growth Portfolio; .50% of the
average daily net assets of the Portfolio up to $25 million, .45% on the next
$50 million, .40% on the next $25 million and .35% of such value in excess of
$100 million of the Maxim INVESCO Balanced Portfolio; and GW Capital Management
is responsible for compensating ICM, which receives monthly compensation at the
annual rate of .55% on the first $50 million, .50% on the next $50 million, and
.40% on assets over $100 million of the Maxim INVESCO ADR Portfolio.

Loomis, Sayles, & Company, L.P.

Loomis, Sayles & Company, L.P. ("Loomis Sayles") serves as the sub-adviser to
the Maxim Loomis Sayles Corporate Bond and Maxim Loomis Sayles Small-Cap Value
Portfolios pursuant to a Sub-Advisory Agreement dated August 30, 1996, as
amended. Loomis Sayles serves as investment manager to a variety of individual
investors, including other mutual funds. Loomis Sayles is an indirect,
majority-owned subsidiary of Metropolitan Life Insurance Company.

GW Capital Management is responsible for compensating Loomis Sayles, which
receives monthly compensation at the annual rate of .50% on the first $10
million, .45% on the next $15 million, .40% on the next $75 million and .30% on
all amounts over $100 million of the Maxim Loomis Sayles Small-Cap Value; and
.30% on all assets of the Maxim Loomis Sayles Corporate Bond Portfolio.

Founders Asset Management LLC

Founders Asset Management LLC ("Founders") serves as the sub-adviser to the
Maxim Founders Growth & Income Portfolio pursuant to a Sub-Advisory Agreement
dated April 1, 1998. Founders is a 90%-owned subsidiary of Mellon Bank, N.A.,
with the remaining 10% held by certain Founders executives and portfolio
managers. Mellon Bank is a wholly-owned subsidiary of Mellon Financial
Corporation, a publicly-owned multibank holding company which provides a
comprehensive range of financial products and services in domestic and selected
international markets. Founders serves as investment manager to a variety of
individual and institutional investors, including other mutual funds.

GW Capital Management is responsible for compensating Founders, which receives
monthly compensation at the annual rate of .425% on the first $250 million,
.35% on the next $250 million, .325% on the next $250 million and .30% on all
amounts over $750 million.

Pareto Partners

Pareto Partners ("Pareto") serves as the sub-adviser to the Maxim Global Bond
Portfolio pursuant to a Sub-Advisory Agreement dated effective July 26, 1999.
Mellon Bank, N.A. owns 30% of Pareto, XL Capital Ltd. owns 30% of Pareto and the
employees of Pareto own the remaining 40% of Pareto. Mellon Bank, N.A. is a
wholly-owned subsidiary of Mellon Bank Corporation, a publicly-owned multibank
holding company which provides a comprehensive range of financial products and
services in domestic and selected international markets.

GW Capital Management is responsible for compensating Pareto, which receives
monthly compensation at the annual rate of .55% on the first $25 million, .45%
on the next $50 million, .35% on the next $175 million and .25% on all amounts
over $250 million.

The Sub-Advisers provide investment advisory assistance and portfolio management
advice to the Investment Adviser for the respective Portfolios. Subject to
review and supervision by GW Capital Management and the Board of Directors of
the Fund, the Sub-Advisers are responsible for the actual management of the
respective Portfolios and for making decisions to buy, sell or hold any
particular securities. The Sub-Advisers bear all expenses in connection with the
performance of their services, such as compensating and furnishing office space
for their officers and employees connected with investment and economic
research, trading and investment management for the Portfolios.

Principal Underwriter

The Fund has entered into a principal underwriting agreement with One Orchard
Equities, Inc. ("OOE"), 8515 East Orchard Road, Englewood, Colorado 80111. OOE
is an affiliate of GW Capital Management, investment adviser of the Fund. OOE is
a broker-dealer registered under the Securities Exchange Act of 1934 and a
member of the National Association of Securities Dealers, Inc. ("NASD"). The
principal underwriting agreement calls for OOE to use all reasonable efforts,
consistent with its other business, to secure purchasers for shares of the
Funds, which are continuously offered at net asset value.

Advisory Fees

For the past three fiscal years, GW Capital Management was paid a fee for its
services to the Fund as follows:

Portfolio 1999 1998 1997
Maxim Money Market $2,958,143$2,435,592 $2,027,526
Maxim Bond $426,077 $437, 276 $444,724
Maxim Stock Index $6,539,655$5,499,511 $6,451,773
Maxim U.S. Government Securities $432,608 $402,762 $357,013
Maxim Bond Index $719,888 $714,083 $646,636
Maxim U.S. Government Mortgage $1,116,175$1,021,297 $ 896,131
Securities
Maxim Index 600 $138,515 $720,754 $617,929
Maxim Growth Index $2,392,749$1,297,577 $767,173
Maxim Value Index $2,123,015$1,711,895 $1,083,359
Maxim Templeton International Equity $1,089,717$1,307,392 $1,229,003
Maxim Ariel Small-Cap Value $364,316 $301,499 $315,399
Maxim Ariel MidCap Value $1,785,216$2,409,975 $1,998,656
Maxim Loomis Sayles Corporate Bond $1,847,779$1,708,143 $1,113,908
Maxim Loomis Sayles Small-Cap Value $1,050,263$1,521,934 $1,365,904
Maxim T. Rowe Price Equity/Income $1,635,613$1,588,063 $958,793
Maxim INVESCO Small-Cap Growth $957,033 $661,772 $441,341
Maxim INVESCO ADR $687,989 $245,921 $123,490
Maxim Short-Term Maturity Bond $744,257 $571,390 $352,368
Maxim INVESCO Balanced $1,808,649$1,551,666 $530,852
Maxim Founders Growth & Income $1,279,462$1,061,076 $452,967
Maxim T. Rowe Price MidCap Growth $1,590,236 $961,912 $214,690
Aggressive Profile I $31,494 $9,631 $292
Moderately Aggressive Profile I $61,971 $21,186 $583
Moderate Profile I $49,084 $19,268 $325
Moderately Conservative Profile I $30,305 $16,225 $238
Conservative Profile I $41,332 $30,453 $80
Maxim Global Bond $491,431 _ _
Maxim Index 400 $25,428 _ _
Maxim Index European $583,300 _ _
Maxim Index Pacific $670,728 _ _
Maxim Aggressive Profile II $225 _ _
Maxim Moderately Aggressive Profile II $339 _ _
Maxim Moderate Profile II $304 _ _
Maxim Moderately Conservative Profile $99 _ _
II
Maxim Conservative Profile II $100 _ _

Sub-Advisory Fees

For the past three fiscal years, the Sub-Advisors were paid fees for their
services to the Fund as follows:

Portfolio 1999 1998 1997
Maxim Templeton International Equity $593,349 $684,218 $652,912
Maxim Ariel Small-Cap Value $113,559 $97,896 $102,634
Maxim Ariel MidCap Value $737,252 $1,443,924 $1,198,132
Maxim Loomis Sayles Corporate Bond $616,304 $569,538 $371,779
Maxim Loomis Sayles Small-Cap Value $432,644 $589,277 $527,264
Maxim T. Rowe Price Equity/Income $817,418 $794,863 $476,886
Maxim INVESCO Small-Cap Growth $486,201 $360,934 $245,164
Maxim INVESCO ADR $357,494 $135,309 $68,016
Maxim INVESCO Balanced $734,028 $643,631 $246,579
Maxim Founders Growth & Income $544,043 $451,298 $192,103
Maxim T. Rowe Price MidCap Growth $795,526 $481,453 $107,763
Maxim Global Bond (Pareto Partners) $175,676 _ _

Payment of Expenses

GW Capital Management provides investment advisory services and pays all
compensation of and furnishes office space for officers and employees of the
Investment Adviser connected with investment and economic research, trading and
investment management of the Fund, as well as the fees of all directors of the
Fund who are affiliated persons of GW Capital Management or any of its
affiliates.

Expenses that are borne directly by the Fund include redemption expenses,
expenses of portfolio transactions, shareholder servicing costs, expenses of
registering the shares under federal and state securities laws, pricing costs
(including the daily calculation of net asset value), interest, certain taxes,
charges of the Custodian, independent directors' fees, legal expenses, state
franchise taxes, costs of auditing services, costs of printing proxies and stock
certificates, Securities and Exchange Commission fees, advisory fees, certain
insurance premiums, costs of corporate meetings, costs of maintenance of
corporate existence, investor services (including allocable telephone and
personnel expenses), extraordinary expenses, and other expenses properly payable
by the Fund. Accounting services are provided for the Fund by GW Capital
Management and the Fund reimburses GW Capital Management for its costs in
connection with such services. The amounts of such expense reimbursements for
the Fund's fiscal years ended December 31, 1999, 1998 and 1997 were $450,130,
$143,649 and $216,643 respectively. Depending upon the nature of the lawsuit,
litigation costs may be borne by the Fund.

GW Capital Management has agreed to pay any expenses which exceed an annual
rate (including the management fee) of 0.95% of the average daily net assets of
the Maxim T. Rowe Price Equity/Income Portfolio; 1.05% of the average daily net
asset of the Maxim T. Rowe Price MidCap Growth Portfolio; 1.10% of the average
daily net assets of the Maxim Ariel MidCap Value and Maxim INVESCO Small-Cap
Growth Portfolios; 1.15% of the average daily net assets of the Maxim Founders
Growth & Income Portfolio; 1.20% of the average daily net assets of the Maxim
Index European and Maxim Index Pacific Portfolios; 1.30% of the average daily
net assets of the Maxim Loomis Sayles Small-Cap Value Portfolio; 1.35% of the
average daily net assets of the Maxim Ariel Small-Cap Value Portfolio; and,
1.50% of the average daily net assets of the Maxim INVESCO ADR and Maxim
Templeton International Equity Portfolios.

PORTFOLIO TRANSACTIONS AND BROKERAGE

Subject to the direction of the Board of Directors, GW Capital Management, or a
Sub-Advisor for those Portfolios which are managed on a day-to-day basis by a
Sub-Advisor, is primarily responsible for placement of Fund's portfolio
transactions. Neither GW Capital Management nor any Sub-Advisor have an
obligation to deal with any broker, dealer or group of brokers or dealers in the
execution of transactions in portfolio securities. In placing orders, it is the
policy of the Fund to obtain the most favorable net results, taking into account
various factors, including price, dealer spread or commissions, if any, size of
the transaction and difficulty of execution. While GW Capital Management and the
Sub-Advisors generally will seek reasonably competitive spreads or commissions,
the Portfolios will not necessarily pay the lowest spread or commission
available.

Transactions on U.S. futures and stock exchanges and other agency transactions
involve the payment of negotiated brokerage commissions. Commissions vary among
different brokers and dealers, which may charge different commissions according
to such factors as the difficulty and size of the transaction. Transactions in
foreign securities often involve the payment of fixed brokerage commissions,
which may be higher than those for negotiated transactions in the United States.
Prices for over-the-counter transactions usually include an undisclosed
commission or "mark-up" that is retained by the broker or dealer effecting the
trade. The cost of securities purchased from an underwriter or from a dealer in
connection with an underwritten offering usually includes a fixed commission
which is paid by the issuer to the underwriter or dealer. Transactions in U.S.
government securities occur usually through issuers and underwriters of and
major dealers in such securities, acting as principals. These transactions are
normally made on a net basis and do not involve payment of brokerage
commissions.

In placing portfolio transactions, GW Capital Management and the Sub-Advisors
may give consideration to brokers or dealers which provide supplemental
investment research, in addition to such research obtained for a flat fee, and
pay commissions to such brokers or dealers furnishing such services which are in
excess of commissions which another broker or dealer may charge for the same
transaction. Such supplemental research ordinarily consists of assessments and
analyses of the business or prospects of a company, industry, or economic
sector. Supplemental research obtained through brokers or dealers will be in
addition to and not in lieu of the services required to be performed by GW
Capital Management or a Sub-Advisor. Expenses will not necessarily be reduced as
a result of the receipt of such supplemental information. GW Capital Management
and the Sub-Advisors may use any supplemental investment research obtained for
the benefit of the Portfolios in providing investment advice to its other
investment advisory accounts, and may use such information in managing its own
accounts. Conversely, such supplemental information obtained by the placement of
business for the Portfolios will be considered by and may be useful to GW
Capital Management or the Sub-Advisors in carrying out its obligations to the
Fund.

If in the best interests of both one or more Portfolios and other client
accounts of GW Capital, GW Capital Management may, to the extent permitted by
applicable law, but need not, aggregate the purchases or sales of securities for
these accounts to obtain favorable overall execution. When this occurs, GW
Capital Management will allocate the securities purchased and sold and the
expenses incurred in a manner that it deems equitable to all accounts. In making
this determination, GW Capital Management may consider, among other things, the
investment objectives of the respective client accounts, the relative size of
portfolio holdings of the same or comparable securities, the availability of
cash for investment, the size of investment commitments generally, and the
opinions of persons responsible for managing the Portfolios and other client
accounts. The use of aggregated transactions may adversely affect the size of
the position obtainable for the Portfolios, and may itself adversely affect
transaction prices to the extent that it increases the demand for the securities
being purchased or the supply of the securities being sold.

No brokerage commissions have been paid by the Maxim Money Market, Bond, Maxim
Bond Index, U.S. Government Securities, Maxim U.S. Government Mortgage
Securities, Maxim Short-Term Maturity Bond, Maxim Global Bond Portfolio and the
Profile Portfolios for the years ended December 31, 1997 through December 31,
1999. For the years 1997, 1998 and 1999, respectively the Portfolios paid
commissions as follows: Maxim Stock Index Portfolio - $130,615, $36,833 and
$99,579; Maxim Templeton International Equity Portfolio - $290,435, $233,873 and
$246,298; Maxim Index 600 Portfolio - $247,609. $30,229 and $11,723; Maxim Value
Index Portfolio - $79,357, 12,590 and $139,884; Maxim Growth Index Portfolio -
$46,825, 14,990 and $128,036; Maxim Ariel Small-Cap Value Portfolio - $117,550,
$42,644 and $42,908; Maxim Ariel MidCap Value Portfolio - $548,942, $521,232 and
$979,682; Maxim Loomis Sayles Small-Cap Value Portfolio $377,783, $517,306 and
$343,301; Maxim T. Rowe Price Equity/Income Portfolio - $108,963, $107,927 and
$140,379; Maxim INVESCO Small-Cap Growth Portfolio - $95,102, $104,969 and
$177,677; Maxim INVESCO ADR Portfolio - $6,894. $10,943 and $56,464; Maxim
Loomis Sayles Corporate Bond Portfolio - $270, $469 and $1,237; Maxim INVESCO
Balanced Portfolio - $188,000, $325,526 and $334,050; Maxim Founders Growth &
Income Portfolio - $267,899, $589,764 and $337,570; Maxim T. Rowe Price MidCap
Growth Portfolio - $79,790, $149,774 and $234,506. In 1999, the following
Portfolios paid commissions as follows: Maxim Index 400 Portfolio - $9,498;
Maxim Index Pacific Portfolio - $72,935; Maxim Index European Portfolio -
$18,679.

Portfolio Turnover

The turnover rate for each Portfolio is calculated by dividing (a) the lesser of
purchases or sales of portfolio securities for the fiscal year by (b) the
monthly average value of portfolio securities owned by the Portfolio during the
fiscal year. In computing the portfolio turnover rate, certain U.S. government
securities (long-term for periods before 1986 and short-term for all periods)
and all other securities, the maturities or expiration dates of which at the
time of acquisition are one year or less, are excluded.

There are no fixed limitations regarding the portfolio turnover of the
Portfolios. Portfolio turnover rates are expected to fluctuate under constantly
changing economic conditions and market circumstances. Securities initially
satisfying the basic policies and objectives of each Portfolio may be disposed
of when appropriate in GW Capital Management's judgment.

With respect to any Portfolio, a higher portfolio turnover rate may involve
correspondingly greater brokerage commissions and other expenses which might be
borne by the Portfolio and, thus, indirectly by its shareholders. Higher
portfolio turnover may also increase a shareholder's current tax liability for
capital gains by increasing the level of capital gains realized by a Portfolio.

Based upon the formula for calculating the portfolio turnover rate, as stated
above, the portfolio turnover rate for each Portfolio (other than the Maxim
Money Market Portfolio) for 1999 and 1998 is as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>

1999 1998
Portfolio Turrnover Rate Turnover Rate

Maxim Bond 67.43% 42.50%
Maxim Global Bond 86.93% -
Maxim Stock Index 10.69% 12.91%
Maxim U.S. Government Securities 51.82% 56.64%
Maxim Loomis Sayles Corporate Bond 28.00% 55.47%
Maxim Index 600 37.75% 59.18%
Maxim Index 400 26.41% -
Maxim Ariel Small-Cap Value 46.17% 26.29%
Maxim Templeton International Equity 58.75% 40.02%
Maxim INVESCO ADR 22.06% 28.66%
Maxim INVESCO Balanced 119.39% 119.95%
Maxim INVESCO Small-Cap Growth 223.65% 149.15%
Maxim Ariel MidCap Value 182.75% 87.81%
Maxim T. Rowe Price Equity/Income 44.02% 32.30%
Maxim Index European 19.79% -
Maxim Index Pacific 18.94% -
Maxim Growth Index 54.24% 26.48%
Maxim Bond Index 127.95% 59.84%
Maxim Short-Term Maturity Bond 45.60% 37.33%
Maxim Loomis Sayles Small-Cap Value 105.57% 149.12%
Maxim U.S. Government Mortgage
Securities 46.74% 108.19%
Maxim Value Index 70.11% 39.67%
Maxim Founders Growth & Income 173.72% 287.17%
Maxim T. Rowe Price MidCap Growth 66.80% 52.50%
Aggressive Profile I 77.51% 94.75%
Moderately Aggressive Profile I 101.16% 123.12%
Moderate Profile I 105.60% 114.39%
Moderately Conservative Profile I 116.96% 112.09%
Conservative Profile I 80.14% 99.16%
Aggressive Profile II 114.40% -
Moderately Aggressive Profile II 105.09% -
Moderate Profile II 113.22% -
Moderately Conservative Profile II 84.96% -
Conservative Profile II 176.32% -

</TABLE>

A higher portfolio turnover rate may involve correspondingly greater
brokerage commissions and other expenses which might be borne by the Fund and,
thus, indirectly by its shareholders.

PURCHASE AND REDEMPTION OF SHARES

As of December 31, 1999, the outstanding shares of the Fund were presently held
of record by Maxim Series Account, Pinnacle Series Account, Retirement Plan
Series Account, FutureFunds Series Account, FutureFunds Series Account II and
Qualified Series Account of GWL&A, by TNE Series (k) Account of New England Life
Insurance Company, by certain qualified retirement plans and by Great-West,
which provided the initial capitalization for certain Portfolios.

The following tables list the name and percentage of ownership of each person
who owned of record or is known by the Fund to own beneficially 5% or more of
the shares of any Portfolio, as of December 31, 1999. The address of each Series
Account owner included herein and for Great-West is: 8515 E. Orchard Road,
Englewood, Colorado 80111.

Maxim Money Market Portfolio
Series Account Percentage
FutureFunds Series Account 15.07%
FutureFunds Series Account II 74.97%
TNE Series (k) Account 8.13%

Maxim Bond Portfolio
Series Account Percentage
FutureFunds Series Account 64.50%
FutureFunds Series Account II 20.54%

Maxim Templeton International Equity Portfolio
Series Account Percentage
FutureFunds Series Account 43.68%
FutureFunds Series Account II 56.32%

Maxim U.S. Government Securities Portfolio
Series Account Percentage
Maxim Series Account 8.75%
FutureFunds Series Account 56.87%
FutureFunds Series Account 9.16%
II
Maxim Conservative Profile 6.32%
I Portfolio
Maxim Moderately Aggressive
Profile I Portfolio 9.01%

Maxim Stock Index Portfolio
Series Account Percentage
FutureFunds Series Account 60.07%
FutureFunds Series Account II 34.38%

Maxim Bond Index Portfolio
Series Account Percentage
FutureFunds Series Account 87.58%
II
TNE Series (K) Account 11.26%

Maxim U.S. Government Mortgage Securities Portfolio
Series Account Percentage
FutureFunds Series Account 88.67%
II
TNE Series (K) Account 9.86%

Maxim Growth Index Portfolio
Series Account Percentage
FutureFunds Series Account 75.64%
II
TNE Series (K) Account 10.28%

Maxim INVESCO Balanced Portfolio
Series Account Percentage
FutureFunds Series Account 66.16%
FutureFunds Series Account 32.40%
II

Maxim Index 600 Portfolio
Series Account Percentage
FutureFunds Series Account 56.37%
FutureFunds Series Account 32.40%
II
Retirement Plan Series 9.78%
Account

Maxim Ariel Small-Cap Value Portfolio
Series Account Percentage
FutureFunds Series Account 16.98%
FutureFunds Series Account 59.38%
II
TNE Series (K) Account 7.32%
Retirement Plan Series 6.67%
Account
Maxim Aggressive Profile I 8.85%
Portfolio

Maxim Loomis Sayles Corporate Bond Portfolio
Series Account Percentage
FutureFunds Series Account 10.74%
FutureFunds Series Account 76.79%
II
TNE Series (K) Account 10.68%

Maxim Loomis Sayles Small-Cap Value Portfolio
Series Account Percentage
FutureFunds Series Account 81.22%
II
TNE Series (K) Account 10.56%
Retirement Plan Series 5.63%
Account

Maxim INVESCO Small-Cap Growth Portfolio
Series Account Percentage
FutureFunds Series Account 41.01%
FutureFunds Series Account 50.26%
II

Maxim T. Rowe Price Equity/Income Portfolio
Series Account Percentage
FutureFunds Series Account 47.22%
FutureFunds Series Account 51.82%
II

Maxim Ariel MidCap Value Portfolio
Series Account Percentage
FutureFunds Series Account 84.49%
FutureFunds Series Account 13.91%
II

Maxim INVESCO ADR Portfolio
Series Account Percentage
FutureFunds Series Account 8.69%
FutureFunds Series Account 65.11%
II
TNE Series (K) Account 10.47%
Maxim Moderately Aggressive
Profile I Portfolio 6.28%

Maxim Short-Term Maturity Bond Portfolio
Series Account Percentage
FutureFunds Series Account 73.12%
II
TNE Series (K) Account 13.11%
Maxim Conservative Profile I 5.36%
Portfolio

Maxim Value Index Portfolio
Series Account Percentage
FutureFunds Series Account 80.11%
II
TNE Series (K) Account 11.77%
Retirement Plan Series
Account

Maxim Founders Growth & Income Portfolio
Series Account Percentage
FutureFunds Series Account 82.77%
II
TNE Series (K) Account 9.98%

Maxim T. Rowe Price MidCap Growth Portfolio
Series Account Percentage
FutureFunds Series Account 70.27%
II
FutureFunds Series Account 8.07%
TNE Series (K) Account 9.88%

Maxim Index 400 Portfolio
Series Account Percentage
Great-West 100.00%

Maxim Index European Portfolio
Series Account Percentage
FutureFunds Series Account 85.95%
II
TNE Series (K) Account 14.04%

Maxim Index Pacific Portfolio
Series Account Percentage
FutureFunds Series Account 86.49%
II
TNE Series (K) Account
12.97%

Maxim Global Bond Portfolio
Series Account Percentage
FutureFunds Series Account 84.26%
II
TNE Series (K) Account 14.80%

Aggressive Profile I Portfolio
Series Account Percentage
FutureFunds Series Account 99.57%

Moderately Aggressive Profile I Portfolio
Series Account Percentage
FutureFunds Series Account 98.82%

Moderate Profile I Portfolio
Series Account Percentage
FutureFunds Series Account 98.68%

Moderately Conservative Profile I Portfolio
Series Account Percentage
FutureFunds Series Account 99.50%

Conservative Profile I Portfolio
Series Account Percentage
FutureFunds Series Account 98.88%

Aggressive Profile II Portfolio
Series Account Percentage
FutureFunds Series II 50.58%
Account
Great-West 20.26%
Software.com, Inc.* 26.89%

Moderately Aggressive Profile II Portfolio
Series Account Percentage
FutureFunds Series II 77.59%
Account
Great-West 8.67%
Software.com, Inc.* 9.66%

Moderate Profile II Portfolio
Series Account Percentage
FutureFunds Series II 60.42%
Account
TNE Series (K) Account 15.88%
Great-West 11.77%
Software.com, Inc.* 11.92%

Moderately Conservative Profile II Portfolio
Series Account Percentage
FutureFunds Series II 70.25%
Account
TNE Series (K) Account 10.50%
Great-West 5.74%
Software.com, Inc.* 13.51%

Conservative Profile II Portfolio
Series Account Percentage
FutureFunds Series II 85.40%
Account
TNE Series (K) Account 7.47%
Great-West 6.90%

* The address of Software.com, Inc is 525 Anacapa St., Santa Barbara, CA 93101.

INVESTMENT PERFORMANCE

The Portfolios may quote measure of investment performance in various ways. All
performance information supplied by the Fund in advertising is historical and is
not intended to indicate future returns.

Money Market Portfolio

In accordance with regulations prescribed by the SEC, the Fund is required to
compute the Money Market Portfolio's current annualized yield for a seven-day
period in a manner which does not take into consideration any realized or
unrealized gains or losses on its portfolio securities. This current annualized
yield is computed by determining the net change (exclusive of realized gains and
losses on the sale of securities and unrealized appreciation and depreciation)
in the value of a hypothetical account having a balance of one share of the
Money Market Portfolio at the beginning of such seven-day period, dividing such
net change in account value by the value of the account at the beginning of the
period to determine the base period return and annualizing this quotient on a
365-day basis.

The SEC also permits the Fund to disclose the effective yield of the Money
Market Portfolio for the same seven-day period, determined on a compounded
basis. The effective yield is calculated by compounding the annualized base
period return by adding one to the base period return, raising the sum to a
power equal to 365 divided by 7, and subtracting one from the result.

The yield on amounts held in the Money Market Portfolio normally will fluctuate
on a daily basis. Therefore, the disclosed yield for any given past period is
not an indication or representation of future yields or rates of return. The
Portfolio's actual yield is affected by changes in interest rates on money
market securities, average portfolio maturity of the Portfolio, the types and
quality of portfolio securities held by the Portfolio, and its operating
expenses.

For the seven day period ending December 31, 1999, the Money Market Portfolio's
yield was 5.33% and its effective yield was 5.47%.

Other Portfolios

Standardized Average Annual Total Return Quotations. Average annual total return
quotations for shares of a Portfolio are computed by finding the average annual
compounded rates of return that would cause a hypothetical investment made on
the first day of a designated period to equal the ending redeemable value of
such hypothetical investment on the last day of the designated period in
accordance with the following formula:

P(I+T)n = ERV

Where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years

ERV = ending redeemable value of the hypothetical $ 1,000 initial payment made
at the beginning of the designated period (or fractional portion thereof)

The computation above assumes that all dividends and distributions made by a
Portfolio are reinvested at net asset value during the designated period. The
average annual total return quotation is determined to the nearest 1/100 of 1%.

One of the primary methods used to measure performance is "total return." Total
return will normally represent the percentage change in value of a Portfolio, or
of a hypothetical investment in a Portfolio, over any period up to the lifetime
of the Portfolio. Unless otherwise indicated, total return calculations will
usually assume the reinvestment of all dividends and capital gains distributions
and will be expressed as a percentage increase or decrease from an initial
value, for the entire period or for one or more specified periods within the
entire period.

Total return percentages for periods longer than one year will usually be
accompanied by total return percentages for each year within the period and/or
by the average annual compounded total return for the period. The income and
capital components of a given return may be separated and portrayed in a variety
of ways in order to illustrate their relative significance. Performance may also
be portrayed in terms of cash or investment values, without percentages. Past
performance cannot guarantee any particular result. In determining the average
annual total return (calculated as provided above), recurring fees, if any, that
are charged to all shareholder accounts are taken into consideration.

Each Portfolio's average annual total return quotations and yield quotations as
they may appear in the Prospectus, this Statement of Additional Information or
in advertising are calculated by standard methods prescribed by the SEC.

Each Portfolio may also publish its distribution rate and/or its effective
distribution rate. A Portfolio's distribution rate is computed by dividing the
most recent monthly distribution per share annualized, by the current net asset
value per share. A Portfolio's effective distribution rate is computed by
dividing the distribution rate by the ratio used to annualize the most recent
monthly distribution and reinvesting the resulting amount for a full year on the
basis of such ratio. The effective distribution rate will be higher than the
distribution rate because of the compounding effect of the assumed reinvestment.
A Portfolio's yield is calculated using a standardized formula, the income
component of which is computed from the yields to maturity of all debt
obligations held by the Portfolio based on prescribed methods (with all
purchases and sales of securities during such period included in the income
calculation on a settlement date basis), whereas the distribution rate is based
on a Portfolio's last monthly distribution. A Portfolio's monthly distribution
tends to be relatively stable and may be more or less than the amount of net
investment income and short- term capital gain actually earned by the Portfolio
during the month.

Other data that may be advertised or published about each Portfolio include the
average portfolio quality, the average portfolio maturity and the average
portfolio duration.

Standardized Yield Quotations. The yield of a Portfolio is computed by dividing
the Portfolio's net investment income per share during a base period of 30 days,
or one month, by the maximum offering price per share on the last day of such
base period in accordance with the following formula:

2[( a - b + 1 )6 - 1 ]
(cd)

Where: a = net investment income earned during the period
b = net expenses accrued for the period

c = the average daily number of shares
outstanding during the period that were entitled to
receive dividends

d = the maximum offering price per share

Net investment income will be determined in accordance with rules established by
the SEC.

Calculation of Total Return. Total return is a measure of the change in value
of an investment in a Portfolio over the time period covered . In calculating
total return, any dividends or capital gains distributions are assumed to have
been reinvested in the Portfolio immediately rather than paid to the investor
in cash. The formula for total return includes four steps (1) adding to the
total number of shares purchased by a hypothetical $1,000 investment in the
Portfolio all additional shares which would have been purchased if all
dividends and distributions paid or distributed during the period had been
immediately reinvested; (2) calculating the value of they hypothetical initial
investment of $1,000 as of the end of the period by multiplying the total
number of shares owned at the end of the period by the net asset value per
share on the last trading day of the period; (3) assuming redemption at the end
of the period and deducting any applicable contingent deferred sales charge;
and (4) dividing this account value for the hypothetical investor by the
initial $1,000 investment. Total return will be calculated for one year, five
years and ten years or some other relevant periods if a Portfolio has not been
in existence for at least ten years.

FORMULA: P(1+T) to the power of N = ERV

WHERE:T = Average annual total return

N = The number of years including portions of years where
applicable for which the performance is being measured

ERV = Ending redeemable value of a hypothetical $1.00 payment made a
the inception of the portfolio

P = Opening redeemable value of a hypothetical $1.00 payment made
the inception of the portfolio

The above formula can be restated to solve for T as follows:

T = [(ERV/P) to the power of 1/N]-1

Set forth below is a table showing each Portfolio's inception date and its
average annual total return for one, five and ten years or the life of the
Portfolio for the periods ended December 31, 1999.

InceptionOne Five Ten Since
Portfolio Date Year Years Years Inception

Maxim Bond 2/25/82 -0.27% 6.47% 6.70% N/A
Maxim Loomis Sayles Corporate Bond 11/1/94 4.87% 11.93% N/A 11.20%
Maxim U.S. Government Securities 4/8/85 0.30% 7.08% 7.37% N/A
Maxim U.S. Government Mortgage 12/1/92 0.51% 7.11% N/A 6.26%
Securities
Maxim Short-Term Maturity Bond 8/1/95 3.37% N/A N/A 5.35%
Maxim Ariel MidCap Value 1/3/94 0.26% 15.22% N/A 14.48%
Maxim T. Rowe Price MidCap Growth 7/1/97 24.60% N/A N/A 23.31%
Maxim Ariel Small-Cap Value 12/1/93 -5.80% 12.18% N/A 10.01%
Maxim Loomis Sayles Small-Cap Value 11/1/94 -0.43% 15.42% N/A 14.33%
Maxim INVESCO Small-Cap Growth 11/1/94 80.78% 33.34% N/A 32.32%
Maxim Templeton International Equity 12/1/93 29.91% 10.39% N/A 9.73%
Maxim INVESCO ADR 11/1/94 22.67% 16.31% N/A 15.48%
Maxi INVESCO Balanced 10/1/96 16.74% N/A N/A 20.30%
Maxim Founders Growth & Income
(formerly, Maxim Founders Blue Chip) 7/1/97 15.04% N/A N/A 14.36%
Maxim T. Rowe Price Equity/Income 11/1/94 3.39% 18.24% N/A 17.29%
Maxim Stock Index 2/25/82 19.73% 27.08% 17.20% N/A
Maxim Index 600 12/1/93 11.85% 14.16% N/A 10.84%
Maxim Growth Index 12/1/93 26.87% 30.04% N/A 24.65%
Maxim Value Index 12/1/93 11.39% 23.05% N/A 18.36%
Maxim Bond Index (formerly, Maxim
Investment Grade Corporate Bond) 12/1/92 -0.31% 6.54% N/A 5.56%
Aggressive Profile I 9/9/97 21.83% N/A N/A 17.10%
Moderately Aggressive Profile I 9/9/97 22.05% N/A N/A 16.35%
Moderate Profile I 9/9/97 16.43% N/A N/A 13.03%
Conservative Profile I 9/9/97 4.86% N/A N/A 7.19%
Moderately Conservative Profile I 9/9/97 8.34% N/A N/A 8.75%
Maxim Index 400 7/26/99 N/A N/A N/A 7.30%*
Maxim Index European 7/26/99 N/A N/A N/A 18.44%*
Maxim Index Pacific 7/26/99 N/A N/A N/A 38.27%*
Maxim Global Bond 7/26/99 N/A N/A N/A -1.25%*
Maxim Aggressive Profile II 9/16/99 N/A N/A N/A 16.72%*
Maxim Moderately Aggressive Profile 9/16/99 N/A N/A N/A 11.41%*
II
Maxim Moderate Profile II 9/16/99 N/A N/A N/A 8.47%*
Maxim Conservative Profile II 9/30/99 N/A N/A N/A 5.00%*
Maxim Moderately Conservative 9/27/99 N/A N/A N/A 7.54%*
Profile II

* Non-annualized.

Performance Comparisons

Each Portfolio may from time to time include its yield and/or total return in
advertisements or in information furnished to present or prospective
shareholders. Each Portfolio may include in such advertisements the ranking of
those performance figures relative to such figures for groups of mutual funds
categorized by Lipper Analytical Services, relevant indices and Donoghue Money
Fund Report as having the same or similar investment objectives.

The manner in which total return and yield will be calculated for public use is
described above. The table in the Prospectus under the heading "Performance
Related Information", summarizes the calculation of total return and yield for
each Portfolio, where applicable, through December 31, 1999.

DIVIDENDS AND TAXES

The following is only a summary of certain tax considerations generally
affecting a Portfolio and its shareholders that are not described in the
Prospectus. No attempt is made to present a detailed explanation of the tax
treatment of the Fund or its shareholders, and this discussion is not intended
as a substitute for careful tax planning or legal advice from a qualified tax
advisor.

Qualification as a Regulated Investment Company

The Internal Revenue Code of 1986, as amended (the "Code"), provides that each
investment portfolio of a series investment company is to be treated as a
separate corporation. Accordingly, a Portfolio will seek to be taxed as a
regulated investment company ("RIC") under Subchapter M of the Code. As an RIC,
a Portfolio will not be subject federal income tax on the portion of its net
investment income (i.e., its taxable interest, dividends and other taxable
ordinary income, net of expenses) and net realized capital gain (i.e., the
excess of capital gains over capital losses) that it distributes to
shareholders, provided that it distributes at least 90% of its investment
company taxable income (i.e., net investment income and the excess of net
short-term capital gain over net long-term capital loss) and at least 90% of its
tax-exempt income (net of expenses allocable thereto) for the taxable year (the
"Distribution Requirement"), and satisfies certain other requirements of the
Code that are described below. A Portfolio will be subject to tax at regular
corporate rates on any income or gains that it does not distribute.
Distributions by a Fund made during the taxable year or, under specified
circumstances, within one month after the close of the taxable year, will be
considered distributions of income and gains during the taxable year and can
therefore satisfy the Distribution Requirement.

In addition to satisfying the Distribution Requirement, a Portfolio must derive
at least 90% of its gross income from dividends, interest, certain payments with
respect to securities loans, gains from the sale or other disposition of stock
or securities or foreign currencies (to the extent such currency gains are
ancillary to a Portfolio's principal business of investing in stock and
securities) and other income (including but not limited to gains from options,
futures or forward contracts) derived with respect to its business of investing
in such stock, securities or currencies (the "Income Requirement"). A Portfolio
is also subject to certain investment diversification requirements.

Certain debt securities purchased by a Portfolio (such as zero-coupon bonds) may
be treated for federal income tax purposes as having original issue discount.
Original issue discount, generally defined as the excess of the stated
redemption price at maturity over the issue price, is treated as interest for
federal income tax purposes. Whether or not a Portfolio actually receives cash,
it is deemed to have earned original issue discount income that is subject to
the distribution requirements of the Code. Generally, the amount of original
issue discount included in the income of a Portfolio each year is determined on
the basis of a constant yield to maturity that takes into account the
compounding of accrued interest.

In addition, a Portfolio may purchase debt securities at a discount that exceeds
any original issue discount that remained on the securities at the time a
Portfolio purchased the securities. This additional discount represents market
discount for income tax purposes. Treatment of market discount varies depending
upon the maturity of the debt security and the date on which it was issued. For
a debt security issued after July 18, 1984 having a fixed maturity date or more
than six months from the date of issue and having market discount, the gain
realized on disposition will be treated as interest to the extent it does not
exceed the accrued market discount on the security (unless a Portfolio elects
for all its debt securities having a fixed maturity date or more than one year
from the date of issue to include market discount in income in taxable years to
which it is attributable). Generally, market discount accrues on a daily basis.
For any debt security issued on or before July 18, 1984 (unless a Portfolio
makes the election to include market discount in income currently), or any debt
security having a fixed maturity date of not more than six months from the date
of issue, the gain realized on disposition will be characterized as long-term or
short-term capital gain depending on the period a Portfolio held the security. A
Portfolio may be required to capitalize, rather than deduct currently, part or
all of any net direct interest expense on indebtedness incurred or continued to
purchase or carry any debt security having market discount (unless a Portfolio
makes the election to include market discount in income currently).

If for any taxable year a Portfolio does not qualify as a regulated investment
company, all of its taxable income (including its net capital gain) will be
subject to tax at regular corporate rates without any deduction for
distributions to shareholders, and such distributions will be taxable as
ordinary dividends to the extent of the current and accumulated earnings and
profits of a Portfolio. In such event, such distributions generally will be
eligible for the dividends-received deductions in the case of corporate
shareholders.

If a Portfolio were to fail to qualify as a RIC for one or more taxable years,
the Portfolio could then qualify (or requalify) as a RIC for a subsequent
taxable year only if the Portfolio had distributed to the Portfolio's
shareholders a taxable dividend equal to the full amount of any earnings and
profits (less the interest charge mentioned below, if applicable) attributable
to such period. A Portfolio might also be required to pay to the U.S. Internal
Revenue Service interest on 50% of such accumulated earnings and profits. In
addition, pursuant to the Code and an interpretative notice issued by the IRS,
if the Portfolio should fail to qualify as a RIC and should thereafter seek to
requalify as a RIC, the Portfolio may be subject to tax on the excess (if any)
of the fair market of the Portfolio's assets over the Portfolio's basis in such
assets, as of the day immediately before the first taxable year for which the
Portfolio seeks to requalify as a RIC.

If a Portfolio determines that it will not qualify as a RIC under Subchapter M
of the Code, the Portfolio will establish procedures to reflect the anticipated
tax liability in the Portfolio's net asset value.

Excise Tax on Regulated Investment Companies

A 4% non-deductible excise tax is imposed on regulated investment companies
that fail to distribute in each calendar year an amount equal to 98% of
ordinary taxable income for the calendar year and 98% of capital gain net
income for the one-year period ended on December 31 of such calendar year. The
balance of such income must be distributed during the next calendar year. For
the foregoing purposes, a regulated investment company is treated as having
distributed any amount on which it is subject to income tax for any taxable
year ending in such calendar year.

U.S. Treasury regulations may permit a regulated investment company, in
determining its investment company taxable income and undistributed net capital
for any taxable year, to treat any capital loss incurred after December 31 as
if it had been incurred in the succeeding year. For purposes of the excise
tax, a regulated investment company may: (I) reduce its capital gain net income
by the amount of any net ordinary loss for any calendar year; and (ii) exclude
foreign currency gains and losses incurred after December 31 of any year in
determining the amount of ordinary taxable income for the current calendar year
(and, instead, include such gains and losses in determining ordinary taxable
income for the succeeding calendar year).

The Portfolios intend to make sufficient distributions or deemed distributions
of their ordinary taxable income and capital gain net income prior to the end
of each calendar year to avoid liability for the excise tax. However,
investors should note that the Portfolios may in certain circumstances be
required to liquidate portfolio investments to make sufficient distributions to
avoid excise tax liability.

Effect of Future Legislation; Local Tax Considerations

The foregoing general discussion of U.S. federal income tax consequences is
based on our understanding of the Code and the regulations issued thereunder as
in effect on the date of this Statement of Additional Information. Future
legislative or administrative changes or court decisions may significantly
change the discussion expressed herein, and any such changes or decisions may
have a retroactive effect with respect to the transactions contemplated herein.

OTHER INFORMATION

Voting Rights

The shares of the Portfolios have no preemptive or conversion rights. Voting
and dividends rights, the right or redemption, and exchange privileges are
described in the Prospectus. Shares are fully paid and nonassessable. The Fund
or any Portfolio may be terminated upon the sale of its assets to another
investment company (as defined in the Investment Company Act of 1940, as
amended), or upon liquidation and distribution of its assets, if approved by
vote of the holders of a majority of the outstanding shares of the Fund or the
Portfolios. If not so terminated, the Fund or the Portfolios will continue
indefinitely.

Custodian

The Bank of New York, One Wall Street, New York, New York 10286, is custodian
of the Fund's assets. The custodian is responsible for the safekeeping of a
Portfolio's assets and the appointment of the subcustodian banks and clearing
agencies. The custodian takes no part in determining the investment policies of
a portfolio or in deciding which securities are purchased or sold by a
Portfolio. However, a Portfolio may invest in obligations of the custodian and
may purchase securities from or sell securities to the custodian.

Independent Auditors

Deloitte & Touche LLP, 555 17th Street, Suite 3600, Denver, Colorado 80202,
serves as the Fund's independent auditor. Deloitte & Touche LLP audits
financial statements for the Fund and provides other audit, tax, and related
services.

FINANCIAL STATEMENTS

The Fund's audited financial statements as of December 31, 1999, together with
the notes thereto and the report of Deloitte & Touche LLP are incorporated by
reference to Registrant's N-30D filed via EDGAR on February 28, 2000.

APPENDIX

Corporate Bond Ratings by Moody's Investors Service, Inc.

Aaa - Bonds which are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally referred to
as "gilt edge". Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized are
most unlikely to impair the fundamentally strong position of such issues.

Aa - Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known
as high-grade bonds. They are rated lower than the best bonds because margins
of protection may not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may be other elements
present which make the long-term risks appear somewhat larger than in Aaa
securities.

A - Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium-grade obligations. Factors giving
security to principal and interest are considered adequate but elements may be
present which suggest a susceptibility to impairment sometime in the future.

Baa - Bonds which are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics as well.

Ba - Bonds which are rated Ba are judged to have speculative elements;
their future cannot be considered as well-assured. Often the protection of
interest and principal payments may be very moderate, and thereby not well
safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.

B - Bonds where are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may be
small.

Corporate Bonds Ratings by Standard & Poor's Corporation

AAA - This is the highest rating assigned by Standard & Poor's to a debt
obligation and indicates an extremely strong capacity to pay principal and
interest.

AA - Bonds rated AA also qualify as high-quality debt obligations.
Capacity to pay principal and interest is very strong, and in the majority of
instances they differ from AAA issues only in a small degree.

A - Bonds rated A have a strong capacity to pay principal and interest,
although they are somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions.

BBB - Bonds rated BBB are regarded as having an adequate capacity to pay
principal and interest. Whereas they normally exhibit protection parameters,
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity for bonds rated BBB than for bonds in the A category.

BB & B - Standard & Poor's describes the BB and B rated issues together
with issues rated CCC and CC. Debt in these categories is regarded on balance
as predominantly speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and CC the highest degree of speculation. While
such debt will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major risk exposures to adverse
conditions.

Commercial Paper Ratings by Moody's Investors Service, Inc.

Prime-1 - Commercial Paper issuers rated Prime-1 are judged to be of the
best quality. Their short-term debt obligations carry the smallest degree of
investment risk. Margins of support for current indebtedness are large or
stable with cash flow and asset protection well assured. Current liquidity
provides ample coverage of near-term liabilities and unused alternative
financing arrangements are generally available. While protective elements may
change over the intermediate or longer term, such changes are most unlikely to
impair the fundamentally strong position of short-term obligations.

Prime-2 - Issuers in the Commercial Paper market rated Prime-2 are high
quality. Protection for short-term holders is assured with liquidity and value
of current assets as well as cash generation in sound relationship to current
indebtedness. They are rated lower than the best commercial paper issuers
because margins of protection may not be as large or because fluctuations of
protective elements over the near or immediate term may be of greater
amplitude. Temporary increases in relative short and overall debt load may
occur. Alternative means of financing remain assured.

Prime-3 - Issuers in the Commercial Paper market rated Prime-3 have an
acceptable capacity for repayment of short-term promissory obligations. The
effect of industry characteristics and market composition may be more
pronounced. Variability in earning and profitability may result in changes in
the level of debt protection measurements and the requirement for relatively
high financial leverage. Adequate alternate liquidity is maintained.

Commercial Paper Ratings by Standard & Poor's Corporation

A - Issuers assigned this highest rating are regarded as having the
greatest capacity for timely payment. Issuers in this category are further
refined with the designation 1, 2 and 3 to indicate the relative degree of
safety.

A-1 - This designation indicates that the degree of safety regarding
timely payment is very strong.

A-2 - Capacity for timely payment for issuers with this designation is
strong. However, the relative degree of safety is not as overwhelming as for
issues designated "A-1".

A-3 - Issuers carrying this designation have a satisfactory capacity for
timely payment. They are, however, somewhat more vulnerable to the adverse
effects of changes in circumstances than obligations carrying the higher
designation.

PART C
OTHER INFORMATION

Item 23. Exhibits

Items (a)-(c) are incorporated by reference to Registrant's
Post-Effective Amendment No. 67 to its Registration Statement
dated February 28, 2000.

Item (d) relating to the sub-advisory agreement for the Maxim
Ariel MidCap Value Portfolio is incorporated by reference to
Registrant's Post-Effective Amendment No. 56 to its Registration
Statement dated November 24, 1998, and all other sub-advisory
agreements are incorporated by reference to Registrant's
Post-Effective Amendments No 28, 29 and 55 to its Registration
Statement dated September 1, 1994 and May 1, 1998. The investment
advisory agreement for the Fund, including all amendments thereto
and the sub-advisory agreement for the Maxim Global Bond
Portfolio are incorporated by reference to Registrant's Post
Effective Amendment No. 64 to its Registration Statement filed
via EDGAR on July 19, 1999.

Item (e), Principal Underwriting Agreement, is incorporated by
reference to Registrant's Post Effective Amendment No. 64 to its
Registration Statement filed via EDGAR on July 19, 1999.

Item (f) is not applicable.

Item (g) is incorporated by reference to Registrant's
Post-Effective Amendment No. 24 dated March 1, 1993.

Item (h) is not applicable.

Item (i) is incorporated by reference to Registrant's
Post-Effective Amendment No. 67 to its Registration Statement
dated February 28, 2000.

Item (j), written consent of Deloitte & Touche LLP, Independent
Auditors is attached hereto as Exhibit 23(j).

Items (k) - (n) are not applicable.

Item (p), Code of Ethics is attached hereto as Exhibit 23(p).

Item 24. Persons Controlled by or under Common Control with Registrant.

See Organizational Chart on page C-2.

<TABLE>

<S> <C> <C> <C> <C> <C> <C>
Power Corporation of Canada
100% - 2795957 Canada Inc.
100% - 171263 Canada Inc.
67.4% - Power Financial Corporation
80.9% - Great-West Lifeco Inc.
100% - The Great-West Life Assurance Company
100% - GWL&A Financial (Nova Scotia) Co.
100% GWL&A Financial, Inc.
100% - Great-West Life & Annuity
Insurance Capital I
100% - Great-West Life & Annuity
Insurance Company
100% - Alta Health & Life Insurance
Company
100% - Alta Agency, Inc.
100% - First Great-West Life &
Annuity Insurance Company
100% - GW Capital Management, LLC
100% - Orchard Capital
Management, LLC
100% - Greenwood Investments,
Inc.
100% - Financial Administrative
Services Corporation
100% - One Corporation
100% - One Health Plan of
Illinois, Inc.
100% - One Health Plan of
Texas, Inc.
100% - One Health Plan of
California, Inc.
100% - One Health Plan of
Colorado, Inc.
100% - One Health Plan of
Georgia, Inc.
100% - One Health Plan of
North Carolina, Inc.
100% - One Health Plan of
Washington, Inc.
100% - One Health Plan of
Ohio, Inc.
100% - One Health Plan of
Tennessee, Inc.
100% - One Health Plan of
Oregon, Inc.
100% - One Health Plan of
Florida, Inc.
100% - One Health Plan of
Indiana, Inc.
100% - One Health Plan of
Massachusetts, Inc.
100% - One Health Plan, Inc.
100% - One Health Plan of
Alaska, Inc.
100% - One Health Plan of
Arizona, Inc.
100% - One of Arizona, Inc.
100% - One Health Plan of
Maine, Inc.
100% - One Health Plan of
Nevada, Inc.
100% - One Health Plan of New
Hampshire, Inc.
100% - One Health Plan of New
Jersey, Inc.
100% - One Health Plan of
South Carolina, Inc.
100% - One Health Plan of
Wisconsin, Inc.
100% - One Health Plan of
Wyoming, Inc.
100% - One Orchard Equities,
Inc.
100% - Great-West Benefit Services,
Inc.
100% - Benefits Communication
Corporation
100% - BenefitsCorp Equities,
Inc.
100% - Benefits Advisors, Inc.
100% - Greenwood Property
Corporation
95% - Maxim Series Fund, Inc.*
100% - GWL Properties Inc.
100% - Great-West Realty
Investments, Inc.
50% - Westkin Properties Ltd.
92%**- Orchard Series Fund
100% - Orchard Trust Company
100% - National Plan Coordinators
of Delaware, Inc.
100% - NPC Securities, Inc.
100% - Deferred Comp of
Michigan, Inc.
100% - National Plan
Coordinators of Washington, Inc.
100% - National Plan
Coordinators of Ohio, Inc.
* 5% New England Life Insurance Company 100% - Renco, Inc.
** 8% New England Life Insurance Company 100% - P.C. Enrollment Services
& Insurance Brokerage, Inc.
</TABLE>

Item 25. Indemnification.

Item 4, Part II, of Registrant's Pre-Effective Amendment No. 1 to
its Registration Statement is herein incorporated by
reference.

Item 26. Business and Other Connections of Investment Adviser.

Registrant's investment adviser, GW Capital Management, LLC ("GW
Capital Management"), is a wholly-owned subsidiary of Great-West
Life & Annuity Insurance Company ("GWL&A"), which is a
wholly-owned subsidiary of The Great-West Life Assurance
Company. GW Capital Management provides investment advisory
services to various unregistered separate accounts of GWL&A and
to Great-West Variable Annuity Account A and Orchard Series Fund,
which are registered investment companies. The directors and
officers of GW Capital Management have held, during the past two
fiscal years, the following positions of a substantial nature.

Name Position(s)
- ---- -----------

John T. Hughes Director, Chairman of the Board and President, GW
Capital Management; Senior Vice President and Chief
Investment Officer (U.S. Operations), Great-West;
Senior Vice President, Chief Investment Officer,
GWL&A, Chairman of the Board, GWL Properties Inc.

Wayne Hoffmann Director, GW Capital Management; Vice President,
Investments, Great-West and GWL&A.

Mark S. Hollen Director, GW Capital Management; Vice President,
Financial Services, Great-West and GWL&A, Chief
Operating Officer, Financial Administrative Services
Corporation.

James M. Desmond Vice President, GW Capital Management; Assistant Vice
President, Investments, Great-West and GWL&A.

David G. McLeod Treasurer, GW Capital Management; Vice President,
Investment Administration, Great-West, GWL&A and
Financial Administrative Services Corporation.

Beverly A. Byrne Secretary, GW Capital Management; Vice President and
Counsel, Great-West; Vice President, Counsel and
Associate Secretary, GWL&A, Counsel and Secretary,
Financial Administrative Services Corporation;
Secretary, One Orchard Equities, Inc., Greenwood
Investments, Inc., BenefitsCorp Equities, Inc.,
Great-West Variable Annuity Account A, Maxim Series
Fund, Inc., and Benefits Communication Corporation.

Item 27. Principal Underwriter

(a) Orchard Series Fund

(b) The principal business address of the directors and officers
of One Orchard Equities, Inc. named below is 8515 East
Orchard Road, Englewood, Colorado 80111.

Positions and Offices Positions and
Officers
Name with Underwriter with Registrant
------ ---------------------
- --------------------
Steve Miller Director and President None

Stan Kenyon Director None
Positions and Offices Positions and
Officers
Name with Underwriter with Registrant
------ ---------------------
- --------------------

Steve Quenville Director None

Mark Hackl Director None

Patricia Neal Jensen Director None

Glen R. Derback Treasurer Controller

Beverly A. Byrne Secretary Secretary

Item 28. Location of Accounts and Records

All accounts, books, and other documents required to be
maintained by Section 31(a) of the Investment Company Act of 1940
and the rules promulgated thereunder are maintained in the
physical possession of: Maxim Series Fund, Inc., 8515 East
Orchard Road, Englewood, Colorado 80111; or GW Capital
Management, LLC, 8515 East Orchard Road, Englewood, Colorado
80111.

Item 29. Management Services

Not applicable.

Item 30. Undertakings

Not applicable.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this
Post-Effective Amendment No. 69 to its Registration Statement to be signed on
its behalf by the undersigned, thereto duly authorized in the City of
Englewood in the State of Colorado on the 26th day of April, 2000.

MAXIM SERIES FUND, INC.
(Registrant)

By: /s/ J.D. Motz
President (J.D. Motz)

Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 66 to the Registration Statement has been signed
below by the following persons in the capacities and on the dates indicated.

Signature Title Date

/s/ J.D. Motz President
4/26/2000
J.D. Motz and Director

/s/ D.G. McLeod Treasurer 4/26/2000
D.G. McLeod

/s/ R.P. Koeppe* Director
4/26/2000
R.P. Koeppe

/s/ R. Jennings* Director
4/26/2000
R. Jennings

/s/ D.L. Wooden Director
4/26/2000
D.L. Wooden

/s/ S. Zisman* Director
4/26/2000
S. Zisman

*By: /s/ Beverly A. Byrne
B.A. Byrne
Attorney-in-fact pursuant to Powers of Attorney filed under
Post-Effective Amendment No. 52 to this Registration Statement.

Exhibit 23(j)

INDEPENDENT AUDITORS' CONSENT

We consent to the incorporation by reference in this Post-Effective Amendment
No. 69 to Registration Statement No. 2-75503 of Maxim Series Fund, Inc. on Form
N-1A of our reports dated February 9, 2000 and to the reference to us under the
headings "Independent Auditors" and "Financial Statements" in the Statement of
Additional Information and "Financial Highlights" in the Prospectus, which are
also part of such Registration Statement.

/s/ Deloitte & Touche LLP

Denver, Colorado
April 25, 2000

Exhibit 23(p)

Maxim Series Fund, Inc. and GW Capital Management, LLC

CODE OF ETHICS

(Rule 17j-1), Investment Company Act of 1940)

I. Applicability

A. Purpose

This Code of Ethics ("Code") establishes rules of conduct for Covered Persons
(as hereinafter defined) of GW Capital Management, LLC ("Capital
Management"), in its capacity as an investment adviser to the Maxim Series
Fund, Inc. ("Maxim"), and for Covered Persons of Maxim itself (Capital
Management and Maxim being hereinafter collectively referred to as "Covered
Companies").

In promulgating this Code, the Covered Companies have considered how the
Code's restrictions and procedures may be applied in light of the Covered
Companies' ethical obligations, the overall nature of the Covered Companies'
operations, and the issues potentially raised by transactions in different
kinds of securities and by the personal investment activities of different
categories of personnel, including, without limitation, portfolio managers,
other investment personnel such as analysts and traders who assist with
portfolio management, and Covered Persons in general.

B. Statement of General Principles

1. Each Covered Person is required, at all times, to place the
interests of Maxim's shareholders above his or her own interests.

2. All personal securities transactions by a Covered Person must be
conducted consistent with this Code and in such a manner as to
avoid any actual or potential conflict of interest or any abuse
of such person's position of trust and responsibility.

3. No Covered Person shall take inappropriate advantage of his or
her position.

4. Covered Persons are specifically reminded that it is unlawful for
any of them, in connection with the purchase or sale, directly or
indirectly, of a security held or to be acquired by the Covered
Companies:

a. To employ any device, scheme or artifice to defraud the
Covered Companies:

b. To make any untrue statement of a material fact to the
Covered Companies or omit to state to the Covered Companies
a material fact necessary to make the statements made, in
light of the circumstances under which they are made, not
misleading;

c. To engage in any act, practice, or course of business which
operates or would operate as a fraud or deceit upon the
Covered Companies: or

d. To engage in any manipulative practice with respect to the
Covered Companies.

C. Definitions

1. For purposes of this Code:

a. "Covered Persons" shall mean any director, officer or
Advisory Person of Maxim or Capital Management.

b. "Advisory Person" shall mean any employee of Capital
Management or Maxim (or of any company in a control
relationship with Capital Management or Maxim), who in
connection with his or her regular functions or duties,
makes, participates in or obtains information regarding the
purchase or sale of securities for Maxim or whose functions
relate to the making of any recommendation to Maxim
regarding the purchase or sale of securities; and

Any natural person or any company in a control relationship
to Maxim or Capital Management who obtains information
concerning recommendations made to Maxim with regard to the
purchase or sale or a security

For purposes of this Article I, a person who normally assists in the
preparation of public reports or who receives public reports but who receives
no information about current recommendations or trading shall not be deemed
to be either an Advisory Person or a Covered Person unless he or she is a
director or officer of Maxim.

2. "Security" shall have the meaning set forth in Section 2(a)(36)
of the Investment Company Act, except that it shall not include
shares of registered open-end investment companies, securities
issued by the Government of the United States, short-term debt
securities which are "government securities" within the meaning
of Section 2(a)(16) of the Investment Company Act, bankers'
deposit, and commercial paper.

3. A security is "being considered for purchase or sale" when a
recommendation to purchase or sell a security has been made and
communicated and, with respect to the person making the
recommendation, when such person seriously considers making such
recommendation.

4. A security is "being purchased or sold" from the time when a
purchase or sale decision has been communicated to the person who
places the by and sell orders until the time when such
transaction has been fully completed or terminated.

5. "Beneficial Ownership" is defined in Attachment A hereto.

6. "Control" shall have the same meaning as that set forth in
Section 2 (a)(9) of the Investment Company Act.

7. "Purchase or sale of a security" includes inter alia, the writing
of an option to purchase or sell security.

8. "Designated Supervisory Person" shall mean a supervisory person
designated by the Covered Companies who has the authority and
responsibility to grant or deny pre-clearance approval of
transactions in securities by Covered Persons, and to otherwise
monitor the activities of Covered Persons as indicated herein.

II. Pre-Clearance

Every Covered Person shall adhere to the following described pre-clearance
and reporting procedures with respect to each transaction by which he or she
acquires any direct or indirect Beneficial Ownership of a security:

A. Each Covered Person must obtain pre-clearance from the Designated
Supervisory Person for all personal securities investments. Such
pre-clearance shall identify any prohibition or limitation applicable
to the proposed personal securities investments.

In seeking pre-clearance, a Covered Person will be required to complete
and sign a pre-clearance form containing certain questions designed to
ensure that there is not actual or potential conflict of interest
between a Covered Person's proposed trade and transactions effected or
to be effected on behalf of Maxim (or which may be contemplated).
Among other things, the pre-clearance form will require a Covered
Person to represent whether he or she is aware of any transactions in
the same or equivalent securities being effected or contemplated on
behalf of Maxim. Advisory Persons must also represent (among other
things) whether any transaction in the same or equivalent securities
has been effected on behalf of Maxim within the preceding fifteen days.

B. Covered Persons may seek pre-clearance only where they have a present
intention to transact in the security for which pre-clearance is
sought. It is Capital Management's and Maxim's view that it is not
appropriate for a Covered Person to obtain a general or open-ended
pre-clearance to cover the eventuality that he or she may buy or sell a
security at some point on a particular day depending upon market
developments. This requirement would not proscribe a price limit
order, provided the Covered Person shall have a present intention to
effect a transaction at such price. Consistent with the foregoing, a
Covered Person may not simultaneously request pre-clearance to buy and
sell the same security.

C. Pre-clearance of a trade shall be valid and in effect only for the
business day on which pre-clearance is obtained; provided, however,
that a pre-clearance expires upon a Covered Person becoming aware of
facts or circumstances that could prevent a proposed trade from being
pre-cleared were such facts or circumstances made known to the
Designated Supervisory Person. Accordingly, if a Covered Person
becomes aware of new or changed facts or circumstances which give rise
to a question as to whether pre-clearance could be obtained if the
Designated Supervisory Person was made aware of such facts or
circumstances, the Covered Person shall be required to advise the
Designated Supervisory Person before proceeding with such transaction.

D. On each business day, compliance personnel shall furnish all
pre-clearance forms to the Covered Persons who completed each such form
on the prior business day along with a memorandum stating that the
attached pre-clearance forms were prepared on the basis of
representations made by the employee. The Covered Person shall be
required to review such form, inform the Designated Supervisory Person
as to whether each pre-cleared securities transaction (or any part of
it) was actually effected and whether any of the information thereon is
inaccurate or otherwise inconsistent with what the employee believes he
or she represented to the Designated Supervisory Person. The Covered
Person shall promptly return the pre-clearance form to the Designated
Supervisory Person. The Designated Supervisory Person shall maintain
appropriate files of all pre-clearance forms and each pre-clearance
form shall be accompanied by a record reflecting the representations
made by Covered Persons as to whether each pre-cleared personal trade
(or any part of it) was actually effected.

E. The restrictions and procedures applicable to transactions in
securities by Covered Persons shall similarly apply to securities whose
value or return is related, in whole or in part, to the value or return
of a security purchased or sold during the relevant period by Maxim or
to the value or return of a security which at the time is presently
being held by Maxim. For example, options or warrants to purchase
common stock, and convertible debt and convertible preferred stock
would be considered related to the underlying common stock for purposes
of this policy. In sum, the related security would be treated as if it
were the underlying security for purposes of pre-clearance.
Accordingly, Covered Persons should be aware of the fact that if an
option transaction cannot be pre-cleared for a particular period of
time (in accordance with the pre-clearance procedures), it is possible
that a Covered Person could be required to hold an option until the
expiration date at which point the Covered Person may automatically
receive whatever option value (if any) remains.

III. Prohibitions and Substantive Restrictions on Personal Investment
Activities

A. No Covered Person shall recommend to Maxim any securities transaction
without having disclosed his or her Beneficial Ownership interest, if
any, in such securities or any other security of the issuer thereof,
including without limitation:

1. his or her direct or indirect Beneficial Ownership of any
securities of such issuer;

2. any contemplated transaction by such person in securities of such
issuer;

3. any position with such issuer or its affiliates; and

4. any present or proposed business relationship between such issuer
or its affiliates and such person or any party in which such
person has a significant interest.

B. No Covered Person shall acquire a Beneficial Ownership in any
securities in an initial public offering.

C. No Covered Person shall acquire a Beneficial Ownership in any
securities through a private placement without express prior approval
from the Designated Supervisory Person. This prior approval shall take
into account among other factors, whether the investment opportunity
should be reserved for Maxim and its Shareholders, and whether the
opportunity is being offered to a Covered Person by virtue of his or
her position with Capital Management or Maxim.

Covered Persons who have been authorized to acquire a Beneficial
Ownership in securities in private placements must disclose such
investment when they are made aware of the Covered Companies subsequent
consideration of investments in the issuer of such private placements.

When such transactions have been approved and the required disclosure
is made, the decision of whether to purchase securities of the issuer
in such private placements shall be based on an independent review by
investment personnel with no personal interest in said issuer, Covered
Persons having interests in the subject issuer may not participate in
any discussions or deliberations relative to the subject securities.

D. No Covered Person shall execute a securities transaction if such Person
is aware that a transaction in that same security is being contemplated
on behalf of Maxim.
Covered Persons shall not execute a securities transaction on a day
during which Maxim has a pending "buy" or "sell" order in that same
security until that order is executed or withdrawn by Maxim investment
personnel having no personal interest in the subject securities and who
are acting solely in the best interest of Maxim. If this prohibition
is violated, any profits realized by such Covered Person must be
disgorged and other appropriate sanctions will be imposed.

E. No Covered Person who is also an Advisory Person shall buy or sell a
security within seven (7) calendar days before or after Maxim trades in
a security of the same issuer. If this prohibition is violated, any
profits realized by such Covered Person must be disgorged and other
appropriate sanctions will be imposed.

F. No Covered Person shall profit in the purchase and sale, or sale and
purchase, of the same (or equivalent) securities within sixty (60)
calendar days of a trade by Maxim in the same security. If this
prohibition is violated, any profits realized by such Covered Person
must be disgorged.

G. No Covered Person, who is an Advisory Person, may purchase a put option
or write a call option where Maxim holds a long position in the
underlying security.

H. No Covered Person, who is an Advisory Person, may establish a long
position, in a security, for his or her personal account, if Maxim:
holds a put option on such security (aside from a put purchased for
hedging purposes where Maxim holds the underlying security), has
written a call option on such security, or otherwise maintains a
position that would benefit from a decrease in the value of the
underlying security.

I. No Covered Person who is an Advisory Person may short sell any security
where Maxim holds a long position in the same security or where Maxim
otherwise maintains a position in respect of which it would benefit
from an increase in the value of the security.

Notwithstanding the foregoing, exceptions to this Section III. A.
through I. may be made on a case-by-case basis as determined by the
Designated Supervisory Person where there is no evidence of abuse and
the equities of the situation strongly support an exemption. As a
general matter, exceptions would only be granted upon a showing of
"hardship" and would not be granted for Covered Persons who are also
Advisory Persons.

J. No Covered Person shall receive, accept or give any gift or any other
thing of more than de minimus value from or to any person or entity
that does or proposes to do business with or on behalf of the Covered
Companies, including issuers whose securities may reasonably be
purchased by Maxim.

K. No Covered Person may engage in any outside business activities which
may give rise to conflict of interest or jeopardize the integrity or
reputation of the Covered Companies.

No Covered Person shall serve on the boards of, or hold any other
official position with, any private companies or any publicly traded
companies without express prior authorization by the Designated
Supervisory Person based upon a determination that such board service
would be consistent with the interests of Maxim and its shareholders.

If such authorization is obtained, any Covered Person serving on the
board of, or holding an official position with, a private company or a
publicly traded company shall be isolated, by means of a "Chinese Wall"
or other similar procedure, from those investment personnel making
investment decisions.

IV. Exempt Transactions

The prohibitions described in Article III shall not apply to:

A. Purchases or sales effected in any account over which the Covered
Person has no direct or indirect influence or control;

B. Purchases or sales that are non-volitional on the part of the Covered
Person;

C. Purchases that are part of an automatic dividend reinvestment plan;

D. Purchases effected upon the exercise of rights issued by an issuer pro
rata to all holders of a class of its securities, to the extent such
rights were acquired from the issuer, and sales of such rights so
acquired; or

E. Any securities transaction, or series of related transactions,
involving five hundred (500) shares or less in the aggregate, if the
issuer has a market capitalization (outstanding shares multiplied by
the current price per share) greater than $1 billion.

F. Purchases or sales of securities which are not eligible for purchase or
sale by Maxim.

V. Reporting Procedures

Every Covered Person shall adhere to the following reporting procedures with
respect to each transaction by which he or she acquired any direct or
indirect Beneficial Ownership of a security:

A. Each Covered Person shall direct his or her broker to supply, to the
Designated Supervisory Person, on a timely basis, duplicate copies of
confirmations of all his or her personal securities transactions and
copies of periodic statements for all his or her personal securities
accounts. With respect to any non-brokered transaction, the Covered
Person shall provide an information statement containing the same type
of information that would be required in a broker's confirmation. In
any event, the information will be supplied to the Designated
Supervisory Person no later than 10 days after the end of the calendar
quarter in which a transaction was effected.

B. Any person who is a Covered Person with respect to Maxim solely by
virtue of being a director of Maxim, but who is not an "interested
person" (as defined in the Investment Company Act of 1940) with respect
to Maxim, shall be subject to the restrictions set forth herein only if
such person, at the time of that transaction, knew, or in the ordinary
course of fulfilling his official duties as a director of Maxim should
have known, that during the 15-day period immediately preceding or
after the date of the transactions by such person, the security such
person purchased or sold is or was purchased or sold by Maxim or was
being considered for purchase or sale by Maxim.

C. Each Covered Person shall permit the Covered Companies to monitor his
or her personal investment activity (including requiring Covered
Persons to effect all personal trades through a particular broker)
after prior approval has been granted and the Covered Companies shall
implement appropriate procedures to monitor such personal investment
activity.

D. Each Covered Person shall disclose all his or her personal securities
holdings upon commencement of employment with Capital Management or
Maxim and thereafter on an annual basis.

E. The management of the Covered Companies shall each prepare an annual
report to the Maxim Board of Directors that, at a minimum:

1. summarizes existing procedures concerning personal investing and
any changes in the procedures made during the past year;

2. identifies any violations requiring significant remedial action
during the last year; and

3. identifies any recommended changes in existing restrictions or
procedures based upon their respective experiences under this
Code, evolving industry practices, or developments in applicable
laws or regulations.

VI. Annual Certification by Covered Persons

A. Each Covered Person shall annually certify that he or she has read and
understands this Code and recognizes that he or she is subject thereto.

B. Each Covered Person shall annually certify that he or she has read and
understands and will adhere to, the Covered Companies' Statement of
Policy on Insider Trading, which should be read in conjunction to this
Code. Each Covered Person also recognizes that he or she is subject to
said policy.

C. Each Covered Person shall annually certify that he or she has complied
with the requirements of this Code and that he or she has disclosed or
reported all personal securities transactions required to be disclosed
or reported pursuant to the requirements of this Code.

VII. Sanctions

Upon discovering that a Covered Person has not complied with the requirements
of this Code, the Board of Directors of Capital Management or Maxim,
whichever is most appropriate under the circumstances, may impose on that
person whatever sanctions the Board deems appropriate, including, among other
things, censure, suspension or termination of employment.

VIII. Dissemination, Record Retention and Confidentiality

A. The Covered Companies will provide a copy of this Code of Ethics to all
Covered Persons.

B. The Covered Companies shall maintain, for a period of six years in an
easily accessible place, the following records:

1. A copy of this Code and any subsequent Codes which have been or
are currently in effect during the covered time frame;

2. A record of any violations of the Code and any actions taken as a
result of such violations;

3. A copy of each report made by a Covered Person pursuant to the
Code; and

4. A list of all persons who are, or within the past six years have
been required to make reports pursuant to the Code.

C. All information obtained from any Covered Person hereunder shall be
kept in strict confidence, except that reports of securities
transactions hereunder shall be made available to the Securities and
Exchange Commission or any other regulatory of self-regulatory
organization to the extent required by law or regulation.

IX. Other Laws, Rules, and Statements of Policy

Nothing contained in this Code shall be interpreted as relieving any Covered
Person from acting in accordance with the provision of any applicable law,
rule, or regulation or any other statement of policy or procedure governing
the conduct of such person adopted by Capital Management, Maxim, their
affiliates or subsidiaries.

X. Further Information

If any person has any question with regard to the applicability of the
provisions of this Code generally or with regard to any securities or
transactions, he or she should consult the Designated Supervisory Person.

Attachment A

For purposes of the attached Code of Ethics, the term "Beneficial Ownership"
shall be interpreted in the same manner as it would be in determining whether
a person is subject to the provisions of Section 16 of the Securities
Exchange Act of 1934 and the rules and regulations thereunder, except that
the determination of direct or indirect beneficial ownership shall apply to
all securities that a Covered Person has or acquires. Beneficial Ownership
of securities would include not only ownership of securities held by a
Covered Person for his own benefit, whether in bearer form or registered in
his name or otherwise, but also ownership of securities held for his benefit
by others (regardless of whether or how they are registered) such as
custodians, brokers, executors, administrators, or trustees (including trusts
in which he has only a remainder interest), and securities held for his
account by pledges, securities owned by a partnership in which he is a member
if he may exercise a controlling influence over the purchase, sale or voting
of such securities, and securities owned by any corporation that he should
regard as a personal holding corporation. Correspondingly, this term would
exclude securities held by a Covered Person for the benefit of someone else.

Ordinarily, this term would not include securities held by executors or
administrators in estates in which a Covered Person is a legatee or
beneficiary unless there is a specific legacy to such person of such
securities or such person is the sole legatee or beneficiary and there are
other assets in the estate sufficient to pay debts ranking ahead of such
legacy, or the securities are held in the estate more than a year after the
decedent's death.

Securities held in the name of another should be considered as "beneficially"
owned by a Covered Person where such person enjoys "benefits substantially
equivalent to ownership". The Securities and Exchange Commission has said
that although the final determination of beneficial ownership is a question
to be determined in the light of the facts of the particular case, generally
a person is regarded as the beneficial owner of securities held in the name
of his or her spouse and their minor children. Absent special circumstances
such relationship ordinarily results in such person obtaining benefits
substantially equivalent to ownership, e.g., application of the income
derived from such securities to maintain a common home, to meet expenses that
such person otherwise would meet from other sources, or the ability to
exercise a controlling influence over the purchase, sale or voting of such
securities.

A Covered Person also may be regarded as the beneficial owner of securities
held in the name of another person, if by reason of any contract,
understanding, relationship, agreement, or other arrangement, he obtains
therefrom benefits substantially equivalent to those of ownership. Moreover,
the fact that the holder is a relative or relative of a spouse and sharing
the same home as a Covered Person may in itself indicate that the Covered
Person would obtain benefits substantially equivalent to those of ownership
from securities held in the name of such relative. Thus, absent
countervailing facts, it is expected that securities held by relatives who
share the same home as a Covered Person will be treated as being beneficially
owned by the Covered Person.

A Covered Person also is regarded as the beneficial owner of securities held
in the name of a spouse, minor children or other person, even though he does
not obtain therefrom the aforementioned benefits of ownership, if he can vest
or revest title in himself at once or at some future time.

Certification

I acknowledge that I have received, read and understood this Code of
Ethics. I hereby agree to comply with these rules and procedures in all
respects. I acknowledge that I am also subject to the Covered Companies'
policy on Insider Trading and that I have/will read that policy in
conjunction with this Code. I further certify, that since the last time I
received a copy of the Code of Ethics, that I have not effected any personal
securities transactions which are prohibited by this Code and that any/all
personal securities transactions were effected and/or reported in compliance
with the rules stated herein.

________________________________
Signature

________________________________
Name (Printed)

________________________________
Date