MAXIM SERIES FUND, INC.
8515 EAST ORCHARD ROAD
ENGLEWOOD, COLORADO 80111
May 3, 2000
VIA EDGAR TRANSMISSION Securities and Exchange Commission 450 Fifth Street, N.W.
Washington, D.C. 200549
Re: Maxim Series Fund, Inc.
Submission Pursuant to Rule 497(e) under the Securities Act of 1933
File Nos. 002-75503 and 811-03364
Ladies and Gentlemen:
Enclosed herewith is a form of a prospectus for Maxim Series Fund, Inc. which
differs from that filed via EDGAR transmission on April 26, 2000, contained in
amendment no. 69 to the Fund's registration statement on Form N-1A, the most
recent amendment to the Fund's registration statement and under Rule 497(j) on
May 3, 2000. Specifically, the prospectus included herewith describes only
fourteen of the thirty-five Portfolios described in the text of amendment no. 69
to the Fund's registration statement on Form N-1A described thirty-five
Portfolios.
If you should require any additional information regarding the foregoing, please
do not hesitate to contact Ms. Ann Furman at Jorden Burt Boros Cicchetti
Berenson & Johnson LLP at (202) 965-8130 or me at (303) 737-3817.
MAXIM SERIES FUND, INC.
/s/ Beverly A. Byrne
Beverly A. Byrne
Secretary
<PAGE>
MAXIM SERIES FUND, INC.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Maxim Money Market Portfolio Maxim INVESCO ADR Portfolio
Maxim Loomis Sayles Corporate Bond Portfolio Maxim INVESCO Balanced Portfolio
Maxim U.S. Government Securities Portfolio
Maxim Ariel MidCap Value Portfolio Maxim INVESCO Small-Cap Growth Portfolio
Aggressive Profile I Portfolio Moderately Aggressive Profile I Portfolio
Moderate Profile I Portfolio Moderately Conservative Profile I Portfolio
Conservative Profile I Portfolio
</TABLE>
(the "Portfolios")
----------------
8515 East Orchard Road
Englewood, CO 80111
(800) 338 - 4015
This Prospectus describes twelve Portfolios of Maxim Series Fund, Inc. (the
"Fund"). Six are "Equity Portfolios," five are "Debt Portfolios" (including the
Money Market Portfolio) and one is a "Balanced Portfolio." GW Capital
Management, LLC ("GW Capital Management"), a wholly owned subsidiary of
Great-West Life & Annuity Insurance Company, serves as investment adviser to
each of the Portfolios. Several of the Portfolios are managed on a day-to-day
basis by "Sub-Advisers" hired by GW Capital Management.
Each Portfolio operates as a separate mutual fund and has its own investment
objectives and strategies. The Fund, however, is available only as an investment
option for certain variable annuity contracts, variable life insurance policies
and certain qualified retirement plans. Therefore you cannot purchase shares of
the Portfolios directly.
This Prospectus contains important information about each Portfolio that you
should consider before investing. Please read it carefully and save it for
future reference.
This Prospectus does not constitute an offer to sell securities in any state or
other jurisdiction to any person to whom it is unlawful to make such an offer in
such state or other jurisdiction.
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon
the accuracy or adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
The date of this Prospectus is May 1, 2000.
<PAGE>
CONTENTS
The Portfolios at a Glance .....................................................
Maxim Money Market Portfolio
Maxim Bond Portfolios
Maxim Small-Cap Portfolio
Maxim MidCap Portfolio
Maxim Foreign Equity Portfolio
Maxim Balanced Portfolio
Maxim Profile I Portfolios
Fees and Expenses...............................................................
Examples........................................................................
More Information About the Portfolios
................................................................................
The Equity Portfolios
The Debt Portfolios
The Money Market Portfolio
The Balanced Portfolio
Other Investment Practices .....................................................
Management of the Portfolios....................................................
Important Information About Your Investment.....................................
Financial Highlights............................................................
<PAGE>
THE PORTFOLIOS AT A GLANCE
The following information about each Portfolio is only a summary of important
information you should know. More detailed information about the Portfolios'
investment strategies and risks is included elsewhere in this Prospectus. Please
read this prospectus carefully before investing in any of the Portfolios.
THE MAXIM MONEY MARKET PORTFOLIO
The investment objective for this Portfolio is to:
o Seek as high a level of current income as is consistent with the preservation
of capital and liquidity.
Principal investment strategies. This Portfolio will:
o Invest in high-quality, short-term debt securities. These securities will
have a rating in one of the two highest rating categories for short-term
debt obligations by at least one nationally recognized statistical rating
organization such as Moody's Investor Services, Inc. ("Moody's) or Standard
& Poor's Corporation ("S&P") (or unrated securities of comparable quality).
o Invest in securities which are only denominated in U.S. dollars.
The principal investment risks for this Portfolio include:
Possible loss of money
o You should know that an investment in the Portfolio is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Portfolio seeks to preserve the value of
your investment at $1.00 per share, it is possible your shares could be
worth less than $1.00 per share when you sell them.
Interest rate risk
o The market value of a money market instrument is affected by changes in
interest rates. When interest rates rise, the market value of money market
instruments declines and when interest rates decline, market value rises.
When interest rates rise, money market instruments which can be purchased
by the Portfolio will have higher yields.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance for the last ten
calendar years. The table shows how the Portfolio's average annual total return
compared to the performance of a broad based securities market index. The
returns shown below are historical and are not an indication of future
performance. Total return figures include the effect of the Portfolio's
recurring expenses, but do not include fees and expenses of any variable
insurance product. If those charges were reflected, the performance shown would
have been lower.
Year-by-Year
1990 7.64%
1991 5.80%
1992 3.49%
1993 2.81%
1994 3.80%
1995 5.62%
1996 5.04%
1997 5.24%
1998 5.15%
1999 4.81%
During the periods shown in the chart for the Maxim Money Market Portfolio, the
highest return for a quarter was 1.94% (quarter ending September, 1990) and the
lowest return for a quarter was 0.67% (quarter ending , September, 1993).
Yield
Yield and effective yield will fluctuate and may not provide a basis for
comparison with bank deposits, other mutual funds or other investments which are
insured or pay a fixed yield for a stated period of time. Yields are based on
past results and are not an indication of future performance. The yield figures
include the effect of the Portfolio's recurring expenses, but do not include
fees and expenses of any variable insurance product. If those charges were
reflected, the performance shown would have been lower.
As of December 31, 1999, the Money Market Portfolio's 7-day yield and its
effective yield were:
<TABLE>
<S> <C>
7-Day Yield Effective Yield
Maxim Money Market Portfolio 5.33% 5.47%
</TABLE>
MAXIM BOND PORTFOLIOS
Maxim U.S. Government Securities Portfolio
The investment objective of this Portfolio is to:
o Seek the highest level of return consistent with preservation of capital
and substantial credit protection.
Principal investment strategies. This Portfolio will:
o Invest primarily in securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities.
o Focus on relative value of the security by analyzing the current and
expected level of interest rates, and current and historical asset yields
versus treasury yields.
o Invest in private mortgage pass-through securities and collateralized
mortgage obligations (CMOs). CMOs may be issued by private issuers and
collateralized by securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities.
o Invest in U.S. Treasury bills, notes or bonds or in certificates (which are
fully backed by the U.S. Government) representing individual interests in
pools of these types of U.S. Treasury securities.
The principal investment risks for this Portfolio include:
Interest Rate Risk
o The market value of a debt security is affected significantly by changes in
interest rates. When interest rates rise, the security's market value
declines and when interest rates decline, market value rises. The longer a
bond's maturity, the greater the risk and the higher its yield. Conversely,
the shorter a bond's maturity, the lower the risk and the lower its yield.
Credit Risk
o A bond's value can also be affected by changes in its credit quality rating
or its issuer's financial conditions.
o An issuer may default on its obligation to pay principal and/or interest.
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
<PAGE>
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance for the last ten
calendar years. The table shows how the Portfolio's average annual total return
compared to the performance of a broad based securities market index. The
returns shown below are historical and are not an indication of future
performance. Total return figures include the effect of the Portfolio's
recurring expenses, but do not include fees and expenses of any variable
insurance product. If those charges were reflected, the performance shown would
have been lower.
Year-by-Year
1990 9.70%
1991 14.34%
1992 8.94%
1993 9.35%
1994 -3.20%
1995 16.09%
1996 3.92%
1997 8.51%
1998 7.24%
1999 0.30%
During the periods shown in the chart for the Maxim U.S. Government Securities
Portfolio , the highest return for a quarter was 5.20% (quarter ending June,
1995) and the lowest return for a quarter was -2.70% (quarter ending March,
1994).
From July 29, 1987 to May 1, 1990, the U.S. Government Securities Portfolio's
name was the Government and High Quality Securities Portfolio. During this
period, the Portfolio's investment policies differed from the U.S. Government
Securities Portfolio's current policies.
The average annual total return for one year, five years, and ten years for the
period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
One Year Five Years Ten Years
Maxim U.S. Government
Securities Portfolio 0.30% 7.08% 7.37%
Lehman Aggregate Bond Index -0.82% 7.73% 7.70%
Lehman Intermediate Government/Mortgage
Index 1.59% 7.77% 7.64%
Merrill Lynch Mortgage Index 1.61% 7.99% 7.88%
</TABLE>
The Lehman Government/Mortgage Index is comprised of U.S. Government issued
securities and agency issued fixed-rate mortgage-backed pass-through securities,
excluding special programs. The Merrill Lynch Mortgage Index is comprised of
fixed-rate mortgage pass-through securities issued by FNMA, FHLMC, and GNMA. It
includes 30-year, 15-year mortgage pass-through securities as well as balloon
securities. The Lehman Aggregate Bond Index covers the U.S. investment grade
fixed rate bond market, including government and corporate securities, agency
mortgage pass-through securities, commercial mortgage-backed securities, and
asset-backed securities having a final maturity of greater than one year that
are traded on U.S. financial markets.
Maxim Loomis Sayles Corporate Bond Portfolio (Sub-Adviser: Loomis, Sayles &
Company, L.P.)
The investment objective of this Portfolio is to:
o Seek high total investment return through a combination of current income and
capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest primarily in corporate debt securities of any maturity.
o Focus on good relative value based on the credit outlook of the issuer,
good structural fit within the objectives and constraints of the Portfolio,
and maximum total return potential.
o Invest up to 20% of its total assets in preferred stock.
o Invest up to 20% of its total assets in foreign securities; however,
securities of Canadian issuers are not subject to this 20% limitation.
o Invest up to 35% of its total assets in securities of below investment
grade quality ("high yield/high risk" or "junk" bonds).
The principal investment risks for this Portfolio include:
Interest Rate Risk
o The market value of a debt security is affected significantly by changes in
interest rates. When interest rates rise, the security's market value
declines and when interest rates decline, market value rises. The longer a
bond's maturity, the greater the risk and the higher its yield. Conversely,
the shorter a bond's maturity, the lower the risk and the lower its yield.
Credit Risk
o A bond's value can also be affected by changes in its credit quality rating
or its issuer's financial conditions.
o An issuer may default on its obligation to pay principal and/or interest.
o Junk bonds are regarded as predominately speculative with respect to the
issuer's continuing ability to meet principal and interest payments. As a
result, the total return and yield of a junk bond can be expected to
fluctuate more than the total return and yield of high quality bonds and
the potential loss is significantly greater.
Foreign Risk
o Foreign markets, particularly emerging markets, can be more volatile than the
U.S. market due to increased risks of adverse issuer, political, regulatory,
market, currency valuation or economic developments and can perform differently
than the U.S. market. As a result, foreign securities subject the Portfolio to
greater risk of potential loss than U.S. securities.
Preferred Stock Risk
o Preferred stocks are subject to interest rate risk and credit risk. The
value of these stocks will tend to fall in response to a general increase
in interest rates and rise in value in response to a general decline in
interest rates. In addition, the value of these stocks will vary in
response to changes in the credit rating of the issuing corporation.
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
1995 30.19%
1996 10.35%
1997 12.70%
1998 3.43%
1999 4.87%
During the periods shown in the chart for the Maxim Loomis Sayles Corporate Bond
Portfolio, the highest return for a quarter was 9.94% (quarter ending June,
1995) and the lowest return for a quarter was -5.01% (quarter ending September,
1998).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim Loomis Sayles Corporate Bond
Portfolio 4.87% 11.93% 11.20%
Merrill Lynch Intermediate
Government/Corporate Index -2.05% 7.61% 7.47%
</TABLE>
The inception date for the Maxim Loomis Sayles Corporate Bond Portfolio was
November 1, 1994. The Merrill Lynch Intermediate Government/Corporate Index is
comprised of Government issued bonds and investment-grade or better,
dollar-denominated, publicly-issued corporate bonds with 1-10 years remaining
until maturity.
MAXIM SMALL-CAP PORTFOLIO
Maxim INVESCO Small-Cap Growth Portfolio (Sub-Adviser: INVESCO Funds Group,
Inc.)
The investment objective of this Portfolio is to:
o Seek long-term capital growth.
Principal investment strategies. This Portfolio will:
o Invest primarily in a diversified group of equity securities of emerging
growth companies with market capitalizations of $2 billion or less at the
time of purchase.
o Invest up to 35% of total assets in equity securities of companies with market
capitalizations in excess of $2 billion.
o Identify companies believed to have favorable opportunities for capital
appreciation within their industry grouping and invest in these companies
when they:
o are determined to be in the developing stages of their life cycle, and
o have demonstrated, or are expected to achieve, long-term earnings growth.
o Invest up to 25% of its total assets in foreign securities; however,
securities of Canadian issuers and American Depository Receipts ("ADRs")
are not subject to this 25% limitation.
The principal investment risks for this Portfolio include:
Small Company Risk
o The stocks of small companies often involve more risk and volatility than
those of larger companies. Because small companies are often dependent on a
small number of products and have limited financial resources, they may be
severely affected by economic changes, business cycles and adverse market
conditions. In addition, there is generally less publicly available
information concerning small companies upon which to base an investment
decision.
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security can be more volatile than the market as
a whole and can perform differently than the value of the market as a
whole. This is particularly true of small companies.
Foreign Risk
o Foreign markets, particularly emerging markets, can be more volatile than the
U.S. market due to increased risks of adverse issuer, political, regulatory,
market, currency valuation or economic developments and can perform differently
than the U.S. market. As a result, foreign securities subject the Portfolio to
greater risk of potential loss than U.S. securities.
Portfolio Turnover Risk
o The portfolio turnover rate for this Portfolio in 1999 was in excess of
100%. High portfolio turnover rates generally result in higher transaction
costs (which are borne directly by the Portfolio).
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
1995 31.79%
1996 26.73%
1997 18.70%
1998 17.62%
1999 80.78%
During the periods shown in the chart for the Maxim INVESCO Small-Cap Growth
Portfolio, the highest return for a quarter was 50.98% (quarter ending December,
1999 ) and the lowest return for a quarter was -17.43% (quarter ending
September, 1998).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim INVESCO Small-Cap
Growth Portfolio 80.78% 33.34% 32.32%
Russell 2000 Index 21.26% 13.08% 14.12%
</TABLE>
The inception date for the Maxim INVESCO Small-Cap Growth Portfolio was November
1, 1994.
The Russell 2000 Index is list compiled by the Frank Russell Company and is a
measure of the bottom two-thirds of the top 3000 market-capitalized, publicly
traded, domestic common stocks.
MAXIM MIDCAP PORTFOLIO
Maxim Ariel MidCap Value Portfolio (Sub-Adviser: Ariel Capital Management, Inc.)
The investment objective of this Portfolio is to:
o Seek long-term capital appreciation.
Principal investment strategies. This Portfolio will:
o Invest primarily in equity securities of mid-cap companies.
o Emphasize issuers that are believed to be undervalued but demonstrate a
strong potential for growth. In this connection the Portfolio will focus on
issuers with market capitalization between approximately $200 million and
$5 billion.
The Portfolio also currently observes the following operating policies:
o Actively seeking investment in companies that achieve excellence in both
financial return and environmental soundness, selecting issuers that take
positive steps toward preserving our environment and avoiding companies
with a poor environment record.
o Not investing in issuers primarily engaged in the manufacture of tobacco,
weapons systems, the production of nuclear energy, or the manufacture of
equipment to produce nuclear energy.
The principal investment risks for this Portfolio include:
Mid-Cap Company Risk
o The stocks of medium sized companies often involve more risk and volatility
than those of larger companies.
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than
the value of the market as a whole.
Portfolio Turnover Risk
o The portfolio turnover rate for this Portfolio in 1999 was in excess of
100%. High portfolio turnover rates generally result in higher transaction
costs (which are borne directly by the Portfolio).
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
1995 26.50%
1996 5.96%
1997 12.95%
1998 33.77%
1999 0.26%
During the periods shown in the chart for the Maxim Ariel MidCap Value
Portfolio, the highest return for a quarter was 34.61% (quarter ending December,
1998) and the lowest return for a quarter was -15.01% (quarter ending September,
1998).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since
One Year Five Years Inception
Maxim Ariel MidCap Value Portfolio 0.26% 15.22% 14.48%
Russell MidCap Index 18.23% 21.86% 17.50%
</TABLE>
The inception date for the Maxim Ariel MidCap Value Portfolio was January 3,
1994.
The Russell MidCap Index is a list of the bottom 800 companies of the top 1000
from the Russell 1000 Index, a list compiled by the Frank Russell Company of the
top 1000 U.S. companies by market capitalization. The bottom 800 companies
represent approximately 35% of the total market capitalization value of the
Russell 1000.
MAXIM FOREIGN EQUITY PORTFOLIO
Maxim INVESCO ADR Portfolio (Sub-Adviser: INVESCO Capital Management, Inc.)
The investment objective of this Portfolio is to:
o Seek high total return through capital appreciation and current income,
while reducing risk through diversification.
Principal investment strategies. This Portfolio will:
o Invest primarily in foreign securities that are issued in the form of
American Depository Receipts ("ADRs") or foreign stocks that are registered
with the Securities and Exchange Commission ("SEC") and traded in the U.S.
o Select stocks in the Portfolio from approximately 2,200 large and
medium-sized capitalization foreign companies.
o Analyze potential investments through computer analysis which compares
current stock price to measures such as:
o book value,
o historical return on equity,
o company's ability to reinvest capital,
o dividends, and
o dividend growth.
The principal investment risks for this Portfolio include:
Foreign Risk
o Foreign markets, particularly emerging markets, can be more volatile than the
U.S. market due to increased risks of adverse issuer, political, regulatory,
market, currency valuation or economic developments and can perform differently
than the U.S. market. As a result, foreign securities subject the Portfolio to
greater risk of potential loss than U.S. securities.
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than
the value of the market as a whole.
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
1995 15.48%
1996 21.17%
1997 12.08%
1998 10.64%
1999 22.67%
During the periods shown in the chart for the Maxim INVESCO ADR Portfolio, the
highest return for a quarter was 21.53% (quarter ending December, 1999) and the
lowest return for a quarter was -16.88% (quarter ending September, 1998).
The average annual total return for one year, five years and since inception of
the Portfolio for the period ended December 31, 1999:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
One Year Five Years
Maxim INVESCO ADR Portfolio 22.67% 16.31% 15.48%
MSCI EAFE Index 27.30% 13.20% 11.77%
</TABLE>
The inception date for the Maxim INVESCO ADR Portfolio was November 1, 1994.
The MSCI EAFE Index is comprised of approximately 1600 separate equity issues
listed on exchanges in twenty-two different countries. The index is designed to
represent the performance of the international equity market generally.
MAXIM BALANCED PORTFOLIO
Maxim INVESCO Balanced Portfolio (Sub-Adviser: INVESCO Funds Group, Inc.)
The investment objective of this Portfolio is to:
o Seek high total return through capital appreciation and current income.
Principal investment strategies. This Portfolio will:
o Invest normally 50% to 70% of its assets in common stocks.
o Invest at least 25% of its assets in debt securities issued by the U.S.
Government, its agencies and instrumentalities, or in investment grade
corporate bonds.
o In selecting equity securities, the Portfolio will:
o seek to identify companies with better-than-average earnings growth potential
o seek to identify companies within industries identified as well-positioned for
the current and expected economic climate
o consider dividend payout records
o seek to identify companies traded on national stock exchanges or
in the over-the counter markets; however, securities traded on
regional or foreign exchanges may also be included.
o Invest up to 25% of total assets in foreign securities; however, securities
of Canadian issuers and American Depository Receipts ("ADRs") are not
subject to this 25% limitation.
The principal investment risks for this Portfolio include:
Stock Market Risk
o Stock markets are volatile and can decline significantly in response to
adverse issuer, political, regulatory, market or economic developments.
Market risk may affect a single company, industry sector of the economy or
the market as a whole.
Issuer Risk
o The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently than
the value of the market as a whole.
Foreign Risk
o Foreign markets, particularly emerging markets, can be more volatile than the
U.S. market due to increased risks of adverse issuer, political, regulatory,
market, currency valuation or economic developments and can perform differently
than the U.S. market. As a result, foreign securities subject the Portfolio to
greater risk of potential loss than U.S. securities.
Interest Rate Risk
o The market value of a debt security is affected significantly by changes in
interest rates. When interest rates rise, the security's market value
declines and when interest rates decline, market value rises. The longer a
bond's maturity, the greater the risk and the higher its yield. Conversely,
the shorter a bond's maturity, the lower the risk and the lower its yield.
Credit Risk
o A bond's value can also be affected by changes in its credit quality rating
or its issuer's financial conditions.
o An issuer may default on its obligation to pay principal and/or interest.
Portfolio Turnover Risk
o The portfolio turnover rate for this Portfolio in 1999 was in excess of
100%. High portfolio turnover rates generally result in higher transaction
costs (which are borne directly by the Portfolio).
Possible Loss of Money
o When you sell your shares of the Portfolio, they could be worth less than what
you paid for them.
Portfolio Performance Data
The bar chart and table below provide an indication of the risk of investment in
the Portfolio. The bar chart shows the Portfolio's performance in each full
calendar year since inception. The table shows how the Portfolio's average
annual total return compared to the performance of a broad based securities
market index. The returns shown below are historical and are not an indication
of future performance. Total return figures include the effect of the
Portfolio's recurring expenses, but do not include fees and expenses of any
variable insurance product. If those charges were reflected, the performance
shown would have been lower.
Year-by-Year
1997 26.10%
1998 18.42%
1999 16.74%
During the periods shown in the chart for the Maxim INVESCO Balanced Portfolio,
the highest return for a quarter was 17.03% (quarter ending June, 1997) and the
lowest return for a quarter was -6.73% (quarter ending September, 1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since
One Year Inception
Maxim INVESCO Balanced Portfolio 16.74% 20.30%
S&P 500 Index 21.04% 28.29%
Lehman Intermediate Government/ Corporate
Index 0.39% 5.78%
Lipper Balanced Index 8.98% 58.89%
The inception date for the Maxim INVESCO Balanced Portfolio was October 1, 1996.
The S&P 500 Index is comprised of the stocks that make up the S&P 500 that trade
on the NYSE, the AMEX, or in NASDAQ over-the-counter market. It is generally
acknowledged that the S&P 500 broadly represents the performance of publicly
traded common stocks in the United States. The Lehman Intermediate
Government/Corporate Bond Index is comprised of U.S. Government issued and
investment-grade or better, dollar-denominated, publicly issued corporate bonds
with 1-10 years remaining until maturity. The Lipper Balanced Index is comprised
of the mutual funds covered by the Lipper Survey of Mutual Funds that invest in
a mix of equity and debt securities as a primary investment objective. The
Lipper Balanced Index measures the average performance of the funds included
over various time periods.
MAXIM PROFILE I PORTFOLIOS
There are five separate Maxim Profile I Portfolios (collectively, the "Profile
Portfolios"). Each Profile I Portfolio provides an asset allocation program
designed to meet certain investment goals based on an investor's risk tolerance,
investment horizon and personal objectives. Each Profile I Portfolio pursues its
investment objective by investing exclusively in other mutual funds (the
"Underlying Portfolios"), including mutual funds that are not affiliated with
Maxim Series Fund.
The investment objective for each Profile I Portfolio is to:
Aggressive Profile I
o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios that emphasize equity investments.
Moderately Aggressive Profile I
o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios that emphasize equity investments, and to a lesser
degree, in Underlying Portfolios that emphasize fixed income investments.
Moderate Profile I
o Seek long-term capital appreciation primarily through investments in
Underlying Portfolios with a relatively equal emphasis on equity and fixed
income investments.
Moderately Conservative Profile I
o Seek capital appreciation primarily through investments in Underlying
Portfolios that emphasize fixed income investments, and to a lesser degree,
in Underlying Portfolios that emphasize equity investments.
Conservative Profile I
o Seek capital preservation primarily through investments in Underlying
Portfolios that emphasize fixed income investments.
The principal investment strategies for each Profile I Portfolio are to:
o Invest in Underlying Portfolios according to an asset allocation program
designed to meet an investor's risk tolerance, investment time horizons and
personal objectives.
Following is an illustration of each Profile I Portfolio according to its
emphasis on income, growth of capital and risk of principal:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Profile I Portfolio Income Growth of Capital Risk of Principal
- ------------------- --------- ----------------- -----------------
Aggressive Profile Low High High
Moderately Aggressive Profile Low High to Medium High
Moderate Profile Medium Medium to High Medium
Moderately Conservative Profile Medium to High Low to Medium Medium
Conservative Profile High Low Low
</TABLE>
o Maintain different allocations of equity and fixed income Underlying
Portfolios with varying degrees of potential investment risk and reward.
o Select asset allocations and Underlying Portfolios to provide investors
with five diversified, distinct options that meet a wide array of investor
needs.
o Automatically rebalance each Profile I Portfolio's holdings of Underlying
Portfolios quarterly to maintain the appropriate asset allocation as well
as the appropriate selection of Underlying Portfolios. Rebalancing occurs
on the 20th of February, May, August and November (unless that day is not a
business day in which case rebalancing will be effected on the next
business day after the 20th). Rebalancing involves selling shares of one
Underlying Portfolio and purchasing shares of another Underlying Portfolio.
The following chart describes the asset allocation ranges for each Profile I
Portfolio:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
======= ======================== ================= ================ ============= =============== ===============
Asset Class Conservative Moderately Moderate Moderately Aggressive
Conservative Aggressive
------------------------ ----------------- ---------------- ------------- --------------- ---------------
E International 0-10% 5-25% 5-25% 10-30% 15-35%
Q
------------------------ ----------------- ---------------- ------------- --------------- ---------------
U Small-Cap 0-10% 0-10% 0-20% 0-20% 10-30%
I
------------------------ ----------------- ---------------- ------------- --------------- ---------------
T MidCap 0-10% 0-20% 5-25% 10-30% 20-40%
------------------------ ----------------- ---------------- ------------- --------------- ---------------
Y Large-Cap 15-35% 15-35% 20-40% 25-45% 15-35%
- -------
------------------------ ----------------- ---------------- ------------- --------------- ---------------
D Bond 30-50% 20-40% 5-25% 5-25% 0-10%
E
------------------------ ----------------- ---------------- ------------- --------------- ---------------
B Short-Term Bond 25-45% 10-30% 5-25% 0-10% 0-10%
T
======= ======================== ================= ================ ============= =============== ===============
</TABLE>
GW Capital Management, the investment adviser, uses a proprietary investment
process for selecting the Underlying Portfolios in which the Profile 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
Portfolios. GW Capital Management examines various factors relating to existing
and potential Underlying Portfolios including performance records over various
time periods, Morningstar ratings, fees and expenses, asset size and managerial
style.
Each Profile I Portfolio may invest 0% to 100% of its assets in Underlying
Portfolios that are advised by GW Capital Management. In order to give you a
better understanding of the types of Underlying Portfolios that fall within a
particular asset category, the table below lists some Underlying Portfolios,
divided by asset category, in which the Profile 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 Securities Portfolio
oMaxim U.S. Government Mortgage Securities Portfolio
oMaxim Global Bond Portfolio
International Equity Mid-Cap Equity
oMaxim Templeton International Equity Portfolio oMaxim Ariel MidCap Value Portfolio
oMaxim INVESCO ADR Portfolio oMaxim Index 400 Portfolio
oMaxim Index European Portfolio oMaxim T. Rowe Price MidCap Growth Portfolio
oMaxim Index Pacific Portfolio
Large-Cap Equity Small-Cap Equity
oMaxim Founders Growth & Income Portfolio oMaxim Ariel Small Cap Value Portfolio
(formerly the Maxim Founders Blue Chip Portfolio) oMaxim Index 600 Portfolio
oMaxim Value Index Portfolio oMaxim Loomis Sayles Small-Cap Value Portfolio
oMaxim Stock Index Portfolio oMaxim INVESCO Small-Cap Growth Portfolio
oMaxim Growth Index Portfolio oMaxim T. Rowe Price Equity/Income Portfolio
</TABLE>
The principal investment risks for the Profile Portfolios include:
Risks Associated with Underlying Portfolios
o Since each Profile I Portfolio invests directly in the Underlying
Portfolios, all risks associated with the eligible Underlying Portfolios
apply to the Profile Portfolios which invest in them.
o Changes in the net asset values of each Underlying Portfolio affect the net
asset values of the Profile Portfolios invested in them. As a result, over
the long-term the Profile Portfolios' ability to meet their investment
objective will depend on the ability of the Underlying Portfolios to meet
their own investment objectives.
o For the Aggressive, Moderately Aggressive and Moderate Profile I
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 I 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 I Portfolio, they will also indirectly bear the fees
of the Underlying Portfolios.
Portfolio Performance Data for the Profile I Portfolios
The information below provides some indication of the risk of investment in the
Profile I Portfolios by comparing the Portfolios' performance to a broad based
securities market index. The bar chart shows each Profile I Portfolio's
performance in each full calendar year since inception. The table shows how each
Profile I Portfolio's average annual total return compared to a broad based
securities market index. The returns shown below are historical and are not an
indication of future performance. Total return figures include the effect of
each Profile I Portfolio's recurring expenses, but do not include fees and
expenses of any variable insurance product. If those charges were reflected, the
performance shown would have been lower.
Each Profile I Portfolio had previously compared its return to the Lipper
Balanced Index. Each Profile I Portfolio now compares its return to the Wilshire
5000 Index plus at least one other index such as the Lehman Aggregate Bond Index
or the MSI EAFE Index. The new securities market indexes better represent the
market sectors (and the types of securities) in which the Profile I Portfolios
may invest.
Year-by-Year
Aggressive Profile I Portfolio
1998 14.84%
1999 21.83%
During the periods shown in the chart for the Aggressive Profile I Portfolio,
the highest return for a quarter was 21.85% (quarter ending December, 1998) and
the lowest return for a quarter was -15.87% (quarter ending September, 1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since Inception
One Year
Maxim Aggressive Profile I Portfolio 21.83% 17.10%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Aggressive Profile I Portfolio was September 9,
1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization. The Morgan Stanley Capital International Europe, Australia and
Far East ("MSCI EAFE") Index is comprised of approximately 1600 separate equity
issues listed on exchanges in twenty-two different countries. The index is
designed to represent the performance of the international equity market
generally. The Lipper Balanced Index is comprised of the mutual funds covered by
the Lipper Survey of Mutual Funds that invest in a mix of equity and debt
securities as a primary investment objective. The Lipper Balanced Index measures
the average performance of the funds included over various time periods.
Moderately Aggressive Profile I Portfolio
1998 12.54%
1999 22.05%
During the periods shown in the chart for the Moderately Aggressive Profile I
Portfolio, the highest return for a quarter was 17.35% (quarter ending December,
1998) and the lowest return for a quarter was -13.70% (quarter ending September,
1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since Inception
One Year
Maxim Moderately Aggressive Profile I
Portfolio 22.05% 16.35%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Moderately Aggressive Profile I Portfolio was
September 9, 1997. The Wilshire 5000 Index is a broad-based market value
weighted benchmark that measures the performance of all U.S.-headquartered,
actively traded common stocks traded on the New York Stock Exchange, American
Stock Exchange and the NASDAQ over-the-counter market and accounts for 92% of
total U.S. market capitalization. The Morgan Stanley Capital International
Europe, Australia and Far East ("MSCI EAFE") Index is comprised of approximately
1600 separate equity issues listed on exchanges in twenty-two different
countries. The index is designed to represent the performance of the
international equity market generally. The Lehman Aggregate Bond Index covers
the U.S. investment grade fixed rate bond market, including government and
corporate securities, agency mortgage pass-through securities, commercial
mortgage-backed securities and asset-backed securities having a final maturity
of greater than one year that are traded on U.S. financial markets. The Lipper
Balanced Index is comprised of the mutual funds covered by the Lipper Survey of
Mutual Funds that invest in a mix of equity and debt securities as a primary
investment objective. The Lipper Balanced Index measures the average performance
of the funds included over various time periods.
Moderate Profile I Portfolio
1998 11.41%
1999 16.43%
During the periods shown in the chart for the Moderate Profile I Portfolio, the
highest return for a quarter was 13.87% (quarter ending December, 1998) and the
lowest return for a quarter was -10.76% (quarter ending September, 1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since Inception
One Year
Maxim Moderate Profile I Portfolio 16.43% 13.03%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Moderate Profile I Portfolio was September 9,
1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization. The Morgan Stanley Capital International Europe, Australia and
Far East ("MSCI EAFE") Index is comprised of approximately 1600 separate equity
issues listed on exchanges in twenty-two different countries. The index is
designed to represent the performance of the international equity market
generally. The Lehman Aggregate Bond Index covers the U.S. investment grade
fixed rate bond market, including government and corporate securities, agency
mortgage pass-through securities, commercial mortgage-backed securities, and
asset-backed securities having a final maturity of greater than one year that
are traded on U.S. financial markets. The Lipper Balanced Index is comprised of
the mutual funds covered by the Lipper Survey of Mutual Funds that invest in a
mix of equity and debt securities as a primary investment objective. The Lipper
Balanced Index measures the average performance of the funds included over
various time periods.
Moderately Conservative Profile I Portfolio
1998 9.75%
1999 8.34%
During the periods shown in the chart for the Moderately Conservative Profile I
Portfolio, the highest return for a quarter was 9.13% (quarter ending December,
1998) and the lowest return for a quarter was -6.86% (quarter ending September,
1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since Inception
One Year
Maxim Moderately Conservative Profile I
Portfolio 8.34% 8.75%
Wilshire 5000 Index 22.05% 21.96%
MSCI EAFE Index 27.30% 18.71%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Moderately Conservative Profile I Portfolio was
September 9, 1997. The Wilshire 5000 Index is a broad-based market value
weighted benchmark that measures the performance of all U.S.-headquartered,
actively traded common stocks traded on the New York Stock Exchange, American
Stock Exchange and the NASDAQ over-the-counter market and accounts for 92% of
total U.S. market capitalization. The Morgan Stanley Capital International
Europe, Australia and Far East ("MSCI EAFE") Index is comprised of approximately
1600 separate equity issues listed on exchanges in twenty-two different
countries. The index is designed to represent the performance of the
international equity market generally. The Lehman Aggregate Bond Index covers
the U.S. investment grade fixed rate bond market, including government and
corporate securities, agency mortgage pass-through securities, commercial
mortgage-backed securities, and asset-backed securities having a final maturity
of greater than one year that are traded on U.S. financial markets. The Lipper
Balanced Index is comprised of the mutual funds covered by the Lipper Survey of
Mutual Funds that invest in a mix of equity and debt securities as a primary
investment objective. The Lipper Balanced Index measures the average performance
of the funds included over various time periods.
Conservative Profile I Portfolio
1998 8.25%
1999 4.86%
During the periods shown in the chart for the Conservative Profile I Portfolio,
the highest return for a quarter was 4.50% (quarter ending December, 1998) and
the lowest return for a quarter was -1.76% (quarter ending September, 1998).
The average annual total return for one year and since inception of the
Portfolio for the period ended December 31, 1999:
Since Inception
One Year
Maxim Conservative Profile I Portfolio
4.86% 7.19%
Wilshire 5000 Index 22.05% 21.96%
Lehman Aggregate Bond Index -0.82% 5.18%
Lipper Balanced Index 8.98% 11.76%
The inception date for the Maxim Conservative Profile I Portfolio was September
9, 1997.
The Wilshire 5000 Index is a broad-based market value weighted benchmark that
measures the performance of all U.S.-headquartered, actively traded common
stocks traded on the New York Stock Exchange, American Stock Exchange and the
NASDAQ over-the-counter market and accounts for 92% of total U.S. market
capitalization.. The Lehman Aggregate Bond Index covers the U.S. investment
grade fixed rate bond market, including government and corporate securities,
agency mortgage pass-through securities, commercial mortgage-backed securities,
and asset-backed securities having a final maturity of greater than one year
that are traded on U.S. financial markets. The Lipper Balanced Index is
comprised of the mutual funds covered by the Lipper Survey of Mutual Funds that
invest in a mix of equity and debt securities as a primary investment objective.
The Lipper Balanced Index measures the average performance of the funds included
over various time periods.
<PAGE>
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Portfolios.
SHAREHOLDER FEES (fees paid directly from your investment)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Sales Load Imposed on Purchases.................................................NONE
Sales Load Imposed on Reinvested Dividends......................................NONE
Deferred Sales Load.............................................................NONE
Redemption Fees.................................................................NONE
Exchange
Fees............................................................................NONE
ANNUAL PORTFOLIO OPERATING EXPENSES (expenses that are deducted from Portfolio assets)
- ------------------------------ ------------------- --------------- --------------------
Maxim Maxim U.S. Maxim Loomis
Money Gov't. Sayles Corporate
Market Securities Bond
- ------------------------------ ------------------- --------------- --------------------
- ------------------------------ ------------------- --------------- --------------------
Management Fees 0.46% 0.60% 0.90%
- ------------------------------ ------------------- --------------- --------------------
- ------------------------------ ------------------- --------------- --------------------
Distribution (12b-1) Fees NONE NONE NONE
- ------------------------------ ------------------- --------------- --------------------
- ------------------------------ ------------------- --------------- --------------------
Other Expenses 0.00% 0.00% 0.00%
- ------------------------------ ------------------- --------------- --------------------
- ------------------------------ ------------------- --------------- --------------------
Total Annual Portfolio
Operating Expenses 0.46% 0.60% 0.90%
- ------------------------------ ------------------- --------------- --------------------
- ------------------------------ -------------- ------------- ------------ --------------
Maxim Maxim Maxim Maxim
INVESCO ADR INVESCO Ariel INVESCO
Balanced MidCap Small-Cap
Value Growth
- ------------------------------ -------------- ------------- ------------ --------------
- ------------------------------ -------------- ------------- ------------ --------------
Management Fees 1.00% 1.00% 0.95% 0.95%
- ------------------------------ -------------- ------------- ------------ --------------
- ------------------------------ -------------- ------------- ------------ --------------
Distribution (12b-1) Fees NONE NONE NONE NONE
- ------------------------------ -------------- ------------- ------------ --------------
- ------------------------------ -------------- ------------- ------------ --------------
Other Expenses 0.14% 0.00% 0.09% 0.12%
- ------------------------------ -------------- ------------- ------------ --------------
- ------------------------------ -------------- ------------- ------------ --------------
Total Annual Portfolio
Operating Expenses 1.14% 1.00% 1.04% 1.07%
- ------------------------------ -------------- ------------- ------------ --------------
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
Maxim Maxim Maxim Maxim Maxim
Aggressive Moderately Moderate Moderately Conservative
Profile I Aggressive Profile I Conservative Profile I
Profile I Profile I
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
Management Fees 0.25% 0.25% 0.25% 0.25% 0.25%
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
Distribution (12b-1) Fees NONE NONE NONE NONE NONE
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
Other Expenses 0.00% 0.00% 0.00% 0.00% 0.00%
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
Total Annual Portfolio
Operating Expenses 0.25%** 0.25%** 0.25%** 0.25%** 0.25%**
- ------------------------------ ---------------- ----------------- -------------- --------------- --------------
</TABLE>
** Each Profile I Portfolio will invest in shares of Underlying Portfolios.
Therefore, each Profile I Portfolio will, in addition to its own expenses such
as management fees, bear its pro rata share of the fees and expenses incurred by
the Underlying Portfolios and the investment return of each Profile I Portfolio
will be reduced by the Underlying Portfolio's expenses. As of the date of this
prospectus, the range of expenses expected to be incurred in connection with
each Profile I Portfolio's investments in Underlying Portfolios is: Maxim
Aggressive Profile I - 1.07% to 1.43%; Maxim Moderately Aggressive Profile I -
1.00% to 1.36%; Maxim Moderate Profile I - 0.97% to 1.31%; Maxim Moderately
Conservative Profile I - 0.91% to 1.27%; Maxim Conservative Profile I - 0.87% to
1.21%. This information is provided as a range since the average assets of each
Profile I Portfolio invested in Underlying Portfolios will fluctuate.
<PAGE>
Examples
These examples are intended to help you compare the cost of investing in the
Portfolios with the cost of investing in other mutual funds.
The Examples assume that you invest $10,000 in the Portfolio for the time
periods indicated and then redeem all of your shares at the end of those
periods. The Examples also assume that your investment has a 5% return each year
and that the Portfolio's operating expenses are the amount show in the fee table
and remain the same for the years shown.
<TABLE>
<S> <C> <C> <C> <C>
Portfolio 1 Year 3 Years 5 Years 10 Years
Maxim Money Market $47 $149 $261 $593
Maxim U.S. Government Securities $62 $194 $340 $774
Maxim Loomis Sayles Corporate Bond $92 $291 $510 $1,160
Maxim INVESCO ADR $117 $368 $646 $1,470
Maxim INVESCO Balanced $103 $323 $566 $1,289
Maxim Ariel MidCap Value $107 $336 $589 $1,341
Maxim INVESCO Small-Cap Growth $110 $346 $606 $1,379
Maxim Aggressive Profile I $26 $81 $141 $322
Maxim Moderately Aggressive Profile I $26 $81 $141 $322
Maxim Moderate Profile I $26 $81 $141 $322
Maxim Moderately Conservative Profile I $26 $81 $141 $322
Maxim Conservative Profile I $26 $81 $141 $322
</TABLE>
<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. Six Portfolios
are considered to be "Equity Portfolios" because they invest primarily in equity
securities (mostly common stocks). Five 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 INVESCO Small-Cap Value Portfolio o Maxim Ariel MidCap Value
Portfolio o Maxim INVESCO ADR Portfolio o Aggressive Profile I
Portfolio o Moderate Profile I Portfolio o Moderately Aggressive
Profile I 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 INVESCO ADR Portfolio will
pursue investments in foreign securities as a principal investment strategy.
Equity investments in foreign companies present special risks and other
considerations - these are discussed below under "Foreign Securities" on page .
The Equity Portfolios may invest in money market instruments and other types of
debt securities, either as a cash reserve or for other appropriate reasons. Debt
securities are discussed below under "Debt Portfolios." Each Portfolio may
invest in derivatives in order to hedge against market risk or reduce interest
rate or credit risk. Derivatives are discussed below under "Derivatives" on page
xx.
The Aggressive Profile I, Moderately Aggressive Profile I and Moderate Profile I
Portfolios are considered "Equity Portfolios" because they invest primarily in
Underlying Portfolios that emphasize equity investments. However, these Profile
Portfolios invest in Underlying Portfolios that invest in debt securities and,
therefore, to that extent are subject to the risks and rewards associated with
debt securities. As well, to the extent an Underlying Portfolio invests in
derivatives, a Profile I Portfolio investing in that portfolio would also be
exposed to the risks and rewards associated with derivative transactions.
Small and Medium Size Companies
Companies that are small or unseasoned (less then 3 years of operating history)
are more likely not to survive or accomplish their goals with the result that
the value of their stock could decline significantly. These companies are less
likely to survive since they are often dependent upon a small number of products
and may have limited financial resources.
Small or unseasoned companies often have a greater degree of change in earnings
and business prospects than larger companies resulting in more volatility in the
price of their securities. As well, the securities of small or unseasoned
companies may not have wide marketability. This fact could cause a Portfolio to
lose money if it needs to sell the securities when there are few interested
buyers. Small or unseasoned companies also normally have fewer outstanding
shares than larger companies. As a result, it may be more difficult to buy or
sell large amounts of these shares without unfavorably impacting the price of
the security. Finally, there may be less public information available about
small or unseasoned companies. As a result, a Sub-Adviser when making a decision
to purchase a security for a Portfolio may not be aware of some problems
associated with the company issuing the security.
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 Loomis Sayles Corporate Bond Portfolio o Maxim U.S. Government Securities Portfolio
o Moderately Conservative Profile I Portfolio o Conservative Profile I Portfolio
o Maxim Money Market Portfolio
</TABLE>
Debt securities are used by issuers to borrow money from investors. The issuer
pays the investor a fixed or variable rate of interest and must repay the amount
borrowed at maturity. In general, bond prices rise when interest rates fall, and
vice versa. Debt securities have varying degrees of quality and varying levels
of sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds. This sensitivity
to interest rates is also referred to as "interest rate risk."
Debt obligations are rated based on their estimated credit risks by independent
services such as S&P and Moody's. "Credit risk" relates to the issuer's ability
to make payments of principal and interest when due.
The lower a bond's quality, the more it is subject to credit risk and interest
rate risk and the more speculative it becomes.
Investment grade securities are those rated in one of the four highest rating
categories by S&P or Moody's or, if unrated, are judged to be of comparable
quality. Debt securities rated in the fourth highest rating categories by S&P or
Moody's and unrated securities of comparable quality are viewed as having
adequate capacity for payment of principal and interest, but do involve a higher
degree of risk than that associated with investments in the higher rating
categories. Money market instruments are short-term debt securities of the
highest investment grade quality. They are discussed separately below under
"Money Market Portfolio, Money Market Instruments and Temporary Investment
Strategies."
Securities rated below investment grade are commonly referred to as "high
yield-high risk securities" or "junk bonds." These securities are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal in accordance with the terms of the obligations. It is, therefore,
possible that these types of factors could in certain instances, reduce the
value of securities held with a commensurate effect on share value. The
following Portfolios may invest in below investment grade debt securities: Maxim
Loomis Sayles Corporate Bond, Maxim INVESCO Small-Cap Growth, Moderately
Conservative Profile I, and Conservative Profile I.
The Debt Portfolios may invest in debt securities of U.S. and foreign issuers.
Investments in foreign securities present special risks and other considerations
- - these are discussed below under "Foreign Securities" on page .
While the Debt Portfolios intend to principally invest in debt securities, they
may make other types of investments. For example, some of the Debt Portfolios
may invest a portion of their assets in equity securities. Equity securities are
discussed above under "Equity Portfolios." Each of the Debt Portfolios (except
the Maxim Money Market, Moderately Conservative Profile I and Conservative
Profile I Portfolios) may invest in derivatives in order to hedge against market
risk or reduce interest rate or credit risk. Derivatives are discussed below
under "Derivatives" on page .
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 INVESCO ADR Portfolio pursues investment in foreign securities as its
principal investment strategy. Therefore, as an investor in this Portfolio, 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 INVESCO ADR Portfolio has substantial exposure to foreign
markets since this Portfolio invests primarily in securities of foreign issuers.
The other Portfolios which may invest in foreign securities have some exposure
to foreign markets. This exposure will be minimized to the extent these
Portfolios invest primarily in securities of U.S. issuers.
ADRs are negotiable certificates, issued by a U.S. depository bank, which
represent an ownership interest in shares of non-U.S. companies that are being
held by a U.S. depository bank. Each ADR may represent one ordinary share (or a
fraction or multiple of an ordinary share) on deposit at the depository bank.
The foreign shares held by the depository bank are known as American Depository
Shares (ADSs). Although there is a technical distinction between ADRs and ADSs,
market participants often use the two terms interchangeably. ADRs are traded
freely on U.S. exchanges or in the U.S. over-the-counter market. ADRs can be
issued under different types of ADR programs, and, as a result, some ADRs may
not be registered with the SEC.
ADRs are a convenient alternative to direct purchases of shares on foreign stock
exchanges. Although they offer investment characteristics that are virtually
identical to the underlying ordinary shares, they are often as easy to trade as
stocks of U.S. domiciled companies. A high level of geographic and industry
diversification can be achieved using ADRs, with all transactions and dividends
being in U.S. dollars and annual reports and shareholder literature printed in
English.
Derivatives
Each Portfolio, other than the Maxim Money Market and Profile Portfolios, can
use various techniques to increase or decrease its exposure to changing security
prices, currency exchange rates, or other factors that affect security values.
These techniques are also referred to as "derivative" transactions.
Derivatives are financial instruments designed to achieve a certain economic
result when an underlying security, index, interest rate, commodity, or other
financial instrument moves in price. Derivatives may be used by the Portfolios
to hedge investments or manage interest or currency-sensitive assets. The Index
Portfolios may purchase and sell derivative instruments (futures contracts on
the Benchmark Index and options thereon) as part of their principal investment
strategy. The other non-Index Portfolios which may enter into derivative
transactions will do so only to protect the value of its investments and not for
speculative purposes. Derivatives can, however, subject a Portfolio to various
levels of risk. There are four basic derivative products: forward contracts,
futures contracts, options and swaps.
Forward contracts commit the parties to buy or sell an asset at a time in the
future at a price determined when the transaction is initiated. They are the
predominant means of hedging currency or commodity exposures. Futures contracts
are similar to forwards but differ in that (1) they are traded through regulated
exchanges, and (2) are "marked to market" daily.
Options differ from forwards and futures in that the buyer has no obligation to
perform under the contract. The buyer pays a fee, called a premium, to the
seller, who is called a writer. The writer gets to keep the premium in any event
but must deliver (in the context of the type of option) at the buyer's demand.
Caps and floors are specialized options which enable floating-rate borrowers and
lenders to reduce their exposure to interest rate swings for a fee.
A swap is an agreement between two parties to exchange certain financial
instruments or components of financial instruments. Parties may exchange streams
of interest rate payments, principal denominated in two different currencies, or
virtually any payment stream as defined by the parties.
Derivatives involve special risks. If GW Capital Management or a sub-adviser
judges market conditions incorrectly or employs a strategy that does not
correlate well with a Portfolio's investments, these techniques could result in
a loss. These techniques may increase the volatility of a Portfolio and may
involve a small investment of cash relative to the magnitude of the risk
assumed. Thus, it is possible for a Portfolio to lose more than its original
investment in a derivatives transactions. In addition, these techniques could
result in a loss if the counterparty to the transaction does not perform as
promised.
Derivative transactions may not always be available and/or may be infeasible to
use due to the associated costs.
Other Risk Factors Associated with the Portfolios
As a mutual fund, each Portfolio is subject to market risk. The value of a
Portfolio's shares will fluctuate in response to changes in economic conditions,
interest rates, and the market's perception of the securities held by the
Portfolio.
No Portfolio should be considered to be a complete investment program by itself.
You should consider your own investment objectives and tolerance for risk, as
well as your other investments when deciding whether to purchase shares of any
Portfolio.
A complete listing of the Portfolios' investment limitations and more detailed
information about their investment practices are contained in the Statement of
Additional Information.
MANAGEMENT OF THE PORTFOLIOS
GW Capital Management provides investment advisory, accounting and
administrative services to the Fund. GW Capital Management's address is 8515
East Orchard Road, Englewood, Colorado 80111. GW Capital Management provides
investment management services for mutual funds and other investment portfolios
representing assets of over $5.7 billion. GW Capital Management and its
affiliates have been providing investment management services since 1969.
The management fee paid to GW Capital Management is as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Portfolio Percentage of Average Net Assets
Maxim Money Market 0.46%
Maxim U.S. Government Securities 0.60%
Maxim Loomis Sayles Corporate Bond 0.90%
Maxim INVESCO ADR 1.00%
Maxim INVESCO Balanced 1.00%
Maxim Ariel MidCap Value 0.95%
Maxim INVESCO Small-Cap Growth 0.95%
Aggressive Profile I 0.25%
Moderately Aggressive Profile I 0.25%
Moderate Profile I 0.25%
Moderately Conservative I 0.25%
Conservative Profile I 0.25%
</TABLE>
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
U.S. Government Securities and the Profile Portfolios, GW Capital Management
uses teams of professionals to manage the assets of those Portfolios. Each
Portfolio has a separate team and all of the members of the team are jointly and
primarily responsible for the day-to-day management of their respective
Portfolios. The teams meet regularly to review Portfolio holdings and to discuss
purchase and sale activity. Team members buy and sell securities for a Portfolio
as they see fit, guided by the Portfolio's investment objective and strategy.
Sub-Advisers
For some of the Portfolios, GW Capital Management has entered into an agreement
with a sub-adviser. This means that the sub-adviser is responsible for the daily
management of the Portfolio and for making decisions to buy, sell or hold any
particular security. Each sub-adviser's management activities are subject to
review and supervision by GW Capital Management and the Board of Directors of
the Fund. Each sub-adviser bears all expenses in connection with the performance
of its services, such as compensating and furnishing office space for its
officers and employees connected with investment and economic research, trading
and investment management of the Portfolio. GW Capital Management, in turn, pays
sub-advisory fees to each sub-adviser for its services.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles & Company, L.P. Ariel Capital Management, Inc.
- ---------------------------- ------------------------------
Maxim Looms Sayles Corporate Bond Portfolio Maxim Ariel MidCap Value Portfolio
INVESCO Funds Group, Inc. INVESCO Capital Management, Inc.
- ------------------------- --------------------------------
Maxim INVESCO Small-Cap Growth Portfolio Maxim INVESCO ADR Portfolio
Maxim INVESCO Balanced Portfolio
</TABLE>
Following is additional information about each sub-adviser:
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 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.
IMPORTANT INFORMATION ABOUT YOUR INVESTMENT
Investing in the Portfolios
Shares of the Portfolios are not for sale directly to the public. Currently, the
Portfolios' shares are sold only to separate accounts of Great-West Life &
Annuity Insurance Company and New England Life Insurance Company to fund
benefits under certain variable annuity contracts, variable life insurance
policies and to participants in connection with qualified retirement plans. In
the future, shares of the Portfolios may be used to fund other variable
contracts offered by Great-West, or its affiliates, or other unrelated insurance
companies. For information concerning your rights under a specific variable
contract, please refer to the applicable prospectus and/or disclosure documents
for that contract.
Purchasing and Redeeming Shares
Variable contract owners or Qualified Plan participants will not deal directly
with the Fund regarding the purchase or redemption of a Portfolio's shares.
Insurance company separate accounts place orders to purchase and redeem shares
of each Portfolio based on allocation instructions received from variable
contract owners. Similarly, Qualified Plan sponsors and administrators purchase
and redeem Portfolio shares based on orders received from participants.
Qualified Plan participants cannot contact the Fund directly to purchase shares
of the Portfolios but may invest in shares of the Portfolios only through their
Qualified Plan. Participants should contact their Qualified Plan sponsor or
administrator for information concerning the appropriate procedure for investing
in the Fund.
Due to differences in tax treatment or other considerations, material
irreconcilable conflicts may arise between the interests of variable annuity
contract owners, variable life insurance policy owners and Qualified Plans that
invest in the Fund. The Board of Directors will monitor each Portfolio for any
material conflicts that may arise and will determine what action should be
taken.
How to Exchange Shares
This section is only applicable to participants in Qualified Plans that purchase
shares of the Fund outside a variable annuity contract.
An exchange involves selling all or a portion of the shares of one Portfolio and
purchasing shares of another Portfolio. There are no sales charges or
distribution fees for an exchange. The exchange will occur at the next net asset
value calculated for the two Portfolios after the exchange request is received
in proper form. Before exchanging into a Portfolio, read its prospectus.
Please note the following policies governing exchanges:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
o You can request an exchange in writing or by telephone.
o Written requests should be submitted to:
8505 East Orchard Road, 401(k) Operations Department
Englewood, CO 80111.
o The form should be signed by the account owner(s) and include the following information:
(1) the name of the account
(2) the account number
(3) the name of the Portfolio from which the shares of which are to be sold
(4) the dollar amount or number of shares to be exchanged
(5) the name of the Portfolio(s) in which new shares will be purchased; and
(6) the signature(s) of the person(s) authorized to effect exchanges in the account.
o You can request an exchange by telephoning 1-800-338-4015.
o A Portfolio may refuse exchange purchases by any person or group if, in GW
Capital Management's judgment, the Portfolio would be unable to invest the
money effectively in accordance with its investment objective and policies,
or would otherwise potentially be adversely affected.
</TABLE>
Other Information
o We may modify, suspend or terminate at any time the policies and procedures
to request an exchange of shares of the Portfolios by telephone.
o If an account has more than one owner of record, we may rely on the
instructions of any one owner. o Each account owner has telephone transaction
privileges unless we receive cancellation instructions from
an account owner.
o We will not be responsible for losses or expenses arising from unauthorized
telephone transactions, as long as we use reasonable procedures to verify
the identity of the investor, such as requesting personal identification
numbers (PINs) and other information.
o All telephone calls will be recorded and we have adopted other procedures
to confirm that telephone instructions are genuine.
During periods of unusual market activity, severe weather, or other unusual,
extreme, or emergency conditions, you may not be able to complete a telephone
transaction and should consider placing your order by mail.
Share Price
The transaction price for buying, selling, or exchanging a Portfolio's shares is
the net asset value of that Portfolio. Each Portfolio's net asset value is
generally calculated as of the close of trading on the New York Stock Exchange
("NYSE") every day the NYSE is open (generally 4:00 p.m. Eastern Time). If the
NYSE closes at any other time, or if an emergency exists, the time at which the
NAV is calculated may differ. To the extent that a Portfolio's assets are traded
in other markets on days when the NYSE is closed, the value of the Portfolio's
assets may be affected on days when the Fund is not open for business. In
addition, trading in some of a Portfolio's assets may not occur on days when the
Fund is open for business. Your share price will be the next net asset value
calculated after we receive your order in good form.
The net asset value of the Maxim Money Market Portfolio is determined by using
the amortized cost method of valuation. Net asset value is based on the market
value of the securities in the Portfolio. Short-term securities with a maturity
of 60 days or less are valued on the basis of amortized cost. If market prices
are not available or if a security's value has been materially affected by
events occurring after the close of the exchange or market on which the security
is principally traded (for example, a foreign exchange or market) , that
security may be valued by another method that the Board of Directors of the Fund
believes accurately reflects fair value.
We determine net asset value by dividing net assets of the Portfolio (the value
of its investments, cash, and other assets minus its liabilities) by the number
of the Portfolio's outstanding shares.
Dividends and Capital Gains Distributions
Each Portfolio earns dividends, interest and other income from its investments,
and distributes this income (less expenses) to shareholders as dividends. Each
Portfolio also realizes capital gains from its investments, and distributes
these gains (less any losses) to shareholders as capital gains distributions.
o The Maxim Money Market Portfolio ordinarily declares dividends from net
investment income daily and distributes dividends monthly.
o The Maxim U.S. Government Securities Portfolio ordinarily distributes
dividends from net investment income quarterly.
o The Maxim INVESCO Balanced, Maxim Ariel MidCap Value, Maxim Ariel Small-Cap
Value, Maxim INVESCO Small-Cap Growth, Maxim Loomis Sayles Corporate Bond
and all Profile Portfolios ordinarily distribute dividends semi-annually.
o The Maxim INVESCO ADR Portfolio ordinarily distributes dividends annually. o
All of the Portfolios generally distribute capital gains, if any, in December.
Tax Consequences
The Portfolios are not currently separate taxable entities. It is possible a
Portfolio could lose this favorable tax treatment if it does not meet certain
requirements of the Internal Revenue Code of 1986, as amended. If it does not
meet those tax requirements and becomes a taxable entity, the Portfolio would be
required to pay taxes on income and capital gains. This would affect your
investment because your return would be reduced by the taxes paid by the
Portfolio.
Tax consequences of your investment in any one of the Portfolios depend on the
provisions of the variable contract through which you invest in the Fund or the
terms of your qualified retirement plan. For more information, please refer to
the applicable prospectus and/or disclosure documents for that contract.
Effect of Foreign Taxes. Dividends and interest received by the Portfolios on
foreign securities may be subject to withholding and other taxes imposed by
foreign governments. These taxes will generally reduce the amount of
distributions on foreign securities.
Annual and Semi-Annual Shareholder Reports
The fiscal year of the Fund ends on December 31 of each year. Twice a year
shareholders of each Fund will receive a report containing a summary of the
Fund's performance and other information.
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand each
Portfolio's financial history for the past five years, or, if shorter, the
period of each Portfolio's operations. Certain information reflects financial
results for a single Portfolio share. Total returns in the following tables
represent the rate that an investor would have earned (or lost) on an investment
in a Portfolio (assuming reinvestment of all dividends and distributions). The
information has been audited by Deloitte & Touche LLP, independent auditors,
whose reports, along with the Fund's financial statements, are included in the
Fund's Annual Report. A free copy of the Annual Report is available upon
request.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
<TABLE>
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.0005 $ 1.0007 $ 1.0007 $ 1.0007 $ 1.0007
Income from Investment Operations
Net investment income 0.0471 0.0505 0.0512 0.0493 0.0555
Net realized loss (0.0002)
-------
Total Income From Investment Operations 0.0471 0.0503 0.0512 0.0493 0.0555
Less Distributions
From net investment income (0.0471) (0.0505) (0.0512) (0.0493) (0.0555)
Total Distributions (0.0471) (0.0505) (0.0512) (0.0493) (0.0555)
Net Asset Value, End of Period $ 1.0005 $ 1.0005 $ 1.0007 $ 1.0007 $ 1.0007
Total Return/Yield 4.81% 5.15% 5.24% 5.04% 5.62%
Net Assets, End of Period $ 722,697,255 $ 619,416,664 $ 453,155,210 $ 396,453,188 $ 277,257,289
Ratio of Expenses to Average Net Assets 0.46% 0.46% 0.46% 0.46% 0.46%
Ratio of Net Investment Income to
Average Net Assets 4.73% 5.05% 5.14% 4.99% 5.55%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM U.S. GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.1049 $ 1.0918 $ 1.0738 $ 1.1001 $ 1.0138
Income from Investment Operations
Net investment income 0.0630 0.0646 0.0707 0.0675 0.0723
Net realized and unrealized gain (loss) (0.0600) 0.0126 0.0180 (0.0263) 0.0863
Total Income From Investment Operations 0.0030 0.0772 0.0887 0.0412 0.1586
Less Distributions
From net investment income (0.0620) (0.0641) (0.0707) (0.0675) (0.0723)
Total Distributions (0.0620) (0.0641) (0.0707) (0.0675) (0.0723)
Net Asset Value, End of Period $ 1.0459 $ 1.1049 $ 1.0918 $ 1.0738 $ 1.1001
Total Return 0.30% 7.24% 8.51% 3.92% 16.09%
Net Assets, End of Period $ 76,591,857 $ 78,875,126 $ 58,311,917 $ 64,077,863 $ 62,473,959
Ratio of Expenses to Average Net Assets 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of Net Investment Income to
Average Net Assets 5.83% 5.91% 6.32% 6.22% 6.76%
Portfolio Turnover Rate 51.82% 56.64% 55.54% 145.02% 185.57%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM ARIEL MIDCAP VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999* 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.8417 $ 1.5532 $ 1.4327 $ 1.3538 $ 1.1003
Income from Investment Operations
Net investment income (loss) 0.0115 (0.0092) (0.0437) (0.0083) 0.0018
Net realized and unrealized gain 0.0029 0.5058 0.2257 0.0890 0.2893
Total Income From Investment Operations 0.0144 0.4966 0.1820 0.0807 0.2911
Less Distributions
From net investment income (0.0115) (0.0317)
From net realized gains (0.3034) (0.2081) (0.0615) (0.0018) (0.0059)
Total Distributions (0.3149) (0.2081) (0.0615) (0.0018) (0.0376)
Net Asset Value, End of Period $ 1.5412 $ 1.8417 $ 1.5532 $ 1.4327 $ 1.3538
Total Return 0.26% 33.77% 12.95% 5.96% 26.50%
Net Assets, End of Period $ 67,498,788 $ 317,547,944 $ 233,939,911 $ 214,710,803 $ 148,264,194
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.04% 1.02% 1.06% 1.08% 1.15%
- - After Reimbursement # 1.04% 1.02% 1.06% 1.07% 1.10%
Ratio of Net Investment Income (Loss) to
Average Net Assets:
- - Before Reimbursement 0.36% (0.64%) (0.51%) (0.67%) 0.08%
- - After Reimbursement # 0.36% (0.64%) (0.51%) (0.66%) 0.13%
Portfolio Turnover Rate 182.75% 87.81% 139.74% 80.31% 167.21%
*The per share information was computed based on average shares.
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM LOOMIS SAYLES CORPORATE BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.1118 $ 1.1981 $ 1.1618 $ 1.1521 $ 0.9716
Income from Investment Operations
Net investment income 0.0873 0.0838 0.0764 0.0825 0.0842
Net realized and unrealized gain (loss) (0.0344) (0.0429) 0.0689 0.0324 0.1994
Total Income From Investment Operations 0.0529 0.0409 0.1453 0.1149 0.2836
Less Distributions
From net investment income (0.0892) (0.0839) (0.0762) (0.0825) (0.1001)
From net realized gains (0.0112) (0.0433) (0.0328) (0.0227) (0.0030)
Total Distributions (0.1004) (0.1272) (0.1090) (0.1052) (0.1031)
Net Asset Value, End of Period $ 1.0643 $ 1.1118 $ 1.1981 $ 1.1618 $ 1.1521
Total Return 4.87% 3.43% 12.70% 10.35% 30.19%
Net Assets, End of Period $ 191,419,344 $ 199,386,033 $ 158,884,389 $ 83,645,029 $ 45,530,190
Ratio of Expenses to Average Net Assets 0.90% 0.90% 0.90% 0.90% 0.90%
Ratio of Net Investment Income to
Average Net Assets 7.74% 7.41% 7.14% 7.68% 7.89%
Portfolio Turnover Rate 28.00% 55.47% 52.69% 40.02% 24.70%
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM INVESCO SMALL-CAP GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.8506 $ 1.5955 $ 1.4330 $ 1.2734 $ 1.0054
Income from Investment Operations
Net investment income (loss) (0.0038) (0.0048) 0.0009 0.0024 0.0069
Net realized and unrealized gain 1.4263 0.2842 0.2612 0.3380 0.3118
Total Income From Investment Operations 1.4225 0.2794 0.2621 0.3404 0.3187
Less Distributions
From net investment income (0.0009) (0.0024) (0.0341)
From net realized gains (0.4386) (0.0243) (0.0987) (0.1784) (0.0166)
Total Distributions (0.4386) (0.0243) (0.0996) (0.1808) (0.0507)
Net Asset Value, End of Period $ 2.8345 $ 1.8506 $ 1.5955 $ 1.4330 $ 1.2734
Total Return 80.78% 17.62% 18.70% 26.73% 31.79%
Net Assets, End of Period $ 181,228,671 $ 82,115,568 $ 62,251,873 $ 31,827,778 $ 6,385,180
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.09% 1.11% 1.19% 1.46% 2.30%
- - After Reimbursement # 1.07% 1.10% 1.10% 1.10% 1.10%
Ratio of Net Investment Income (Loss) to
Average Net Assets:
- - Before Reimbursement (0.36%) (0.32%) (0.62%)
(0.08%) (0.11%)
- - After Reimbursement # (0.34%) (0.31%) 0.01% 0.25% 0.58%
Portfolio Turnover Rate 223.65% 149.15% 174.65% 265.05% 266.64%
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM INVESCO ADR PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998, 1997, 1996 and 1995 are as follows:
Year Ended December 31,
1999 1998 1997 1996 1995
Net Asset Value, Beginning of Period $ 1.6252 $ 1.4804 $ 1.3508 $ 1.1255 $ 0.9859
Income from Investment Operations
Net investment income 0.0061 0.0123 0.0114 0.0112 0.0120
Net realized and unrealized gain 0.3614 0.1453 0.1512 0.2266 0.1396
Total Income From Investment Operations 0.3675 0.1576 0.1626 0.2378 0.1516
Less Distributions
From net investment income (0.0057) (0.0128) (0.0116) (0.0112) (0.0120)
From net realized gains (0.0101) (0.0214) (0.0013)
Total Distributions (0.0158) (0.0128) (0.0330) (0.0125) (0.0120)
Net Asset Value, End of Period $ 1.9769 $ 1.6252 $ 1.4804 $ 1.3508 $ 1.1255
Total Return 22.67% 10.64% 12.08% 21.17% 15.48%
Net Assets, End of Period $ 141,769,982 $ 28,296,279 $ 16,581,357 $ 7,694,858 $ 2,681,969
Ratio of Expenses to Average Net Assets:
- - Before Reimbursement 1.16% 1.32% 1.63% 2.29% 2.78%
- - After Reimbursement # 1.14% 1.30% 1.30% 1.33% 1.50%
Ratio of Net Investment Income (Loss) to
Average Net Assets:
- - Before Reimbursement 0.57% 0.84% 0.69% 0.24%
(0.11%)
- - After Reimbursement # 0.59% 0.86% 1.02% 1.20% 1.17%
Portfolio Turnover Rate 22.06% 28.66% 19.56% 15.25% 5.88%
# Percentages are shown net of expenses reimbursed by The Great-West Life
Assurance Company or GW Capital Management, LLC.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM INVESCO BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and 1997, and the period ended December 31, 1996 are as
follows:
Period Ended December 31,
1999 1998 1997 1996
(A)
Net Asset Value, Beginning of Period $ 1.4608 $ 1.2588 $ 1.0408 $ 1.0000
Income from Investment Operations
Net investment income 0.0271 0.0289 0.0187 0.0052
Net realized and unrealized gain 0.2086 0.2020 0.2518 0.0420
Total Income From Investment Operations 0.2357 0.2309 0.2705 0.0472
Less Distributions
From net investment income (0.0272) (0.0289) (0.0187) (0.0052)
From net realized gains (0.2535) (0.0338) (0.0012)
Total Distributions (0.2807) (0.0289) (0.0525) (0.0064)
Net Asset Value, End of Period $ 1.4158 $ 1.4608 $ 1.2588 $ 1.0408
Total Return 16.74% 18.42% 26.10% 4.60%
Net Assets, End of Period $ 168,657,892 $ 175,637,780 $ 127,072,586 $ 15,987,166
Ratio of Expenses to Average Net Assets 1.00% 1.00% 1.00% 1.00%*
Ratio of Net Investment Income to
Average Net Assets 1.94% 2.18% 2.77% 2.84%*
Portfolio Turnover Rate 119.39% 119.95% 150.57% 17.14%
*Annualized
(A) The portfolio commenced operations on October 1, 1996.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM AGGRESSIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0794 $ 0.9505 $ 1.0000
Income from Investment Operations
Net investment income 0.0036 0.0060 0.0047
Capital gain distributions received 0.0969 0.0286 0.0712
Total distributions received 0.1005 0.0346 0.0759
Net realized and unrealized gain (loss) on investments 0.1346 0.1061 (0.0432)
Total Income From Investment Operations 0.2351 0.1407 0.0327
Less Distributions
From net investment income (0.0011) (0.0111) (0.0127)
From net realized gains (0.0796) (0.0007) (0.0695)
Total Distributions (0.0807) (0.0118) (0.0822)
Net Asset Value, End of Period $ 1.2338 $ 1.0794 $ 0.9505
Total Return 21.83% 14.84% 3.31%
Net Assets, End of Period $ 19,006,974 $ 7,608,452 $ 697,434
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 0.09% 0.97% 2.38% *
Portfolio Turnover Rate 77.51% 94.75% 59.90%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM MODERATELY AGGRESSIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0668 $ 0.9676 $ 1.0000
Income from Investment Operations
Net investment income 0.0142 0.0136 0.0075
Capital gain distributions received 0.0768 0.0284 0.0568
Total distributions received 0.0910 0.0420 0.0643
Net realized and unrealized gain (loss) on investments 0.1430 0.0790 (0.0279)
Total Income From Investment Operations 0.2340 0.1210 0.0364
Less Distributions
From net investment income (0.0099) (0.0217) (0.0141)
From net realized gains (0.0727) (0.0001) (0.0547)
Total Distributions (0.0826) (0.0218) (0.0688)
Net Asset Value, End of Period $ 1.2182 $ 1.0668 $ 0.9676
Total Return 22.05% 12.54% 3.66%
Net Assets, End of Period $ 36,469,448 $ 15,066,086 $ 1,630,969
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 0.96% 1.80% 4.19% *
Portfolio Turnover Rate 101.16% 123.12% 41.30%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MODERATE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0503 $ 0.9661 $ 1.0000
Income from Investment Operations
Net investment income 0.0226 0.0171 0.0090
Capital gain distributions received 0.0706 0.0159 0.0477
Total distributions received 0.0932 0.0330 0.0567
Net realized and unrealized gain (loss) on investments 0.0780 0.0769 (0.0308)
Total Income From Investment Operations 0.1712 0.1099 0.0259
Less Distributions
From net investment income (0.0182) (0.0257) (0.0144)
From net realized gains (0.0782) (0.0454)
Total Distributions (0.0964) (0.0257) (0.0598)
Net Asset Value, End of Period $ 1.1251 $ 1.0503 $ 0.9661
Total Return 16.43% 11.41% 2.60%
Net Assets, End of Period $ 27,960,665 $ 12,600,896 $ 1,044,081
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 1.91% 2.27% 5.51% *
Portfolio Turnover Rate 105.60% 114.39% 31.39%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM MODERATELY CONSERVATIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0470 $ 0.9909 $ 1.0000
Income from Investment Operations
Net investment income 0.0309 0.0266 0.0132
Capital gain distributions received 0.0450 0.0121 0.0182
Total distributions received 0.0759 0.0387 0.0314
Net realized and unrealized gain (loss) on investments 0.0104 0.0576 (0.0085)
Total Income From Investment Operations 0.0863 0.0963 0.0229
Less Distributions
From net investment income (0.0271) (0.0398) (0.0151)
From net realized gains (0.0464) (0.0004) (0.0169)
Total Distributions (0.0735) (0.0402) (0.0320)
Net Asset Value, End of Period $ 1.0598 $ 1.0470 $ 0.9909
Total Return 8.34% 9.75% 2.29%
Net Assets, End of Period $ 13,672,483 $ 9,586,577 $ 534,975
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 2.70% 3.41% 6.02% *
Portfolio Turnover Rate 116.96% 112.09% 32.97%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM CONSERVATIVE PROFILE I PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the portfolio for the years ended
December 31, 1999, 1998 and the period ended December 31, 1997 are as follows:
Period Ended December 31,
1999 1998 1997
(A)
Net Asset Value, Beginning of Period $ 1.0301 $ 1.0088 $ 1.0000
Income from Investment Operations
Net investment income 0.0428 0.0412 0.0145
Capital gain distributions received 0.0236 0.0149 0.0121
Total distributions received 0.0664 0.0561 0.0266
Net realized and unrealized gain (loss) on investments (0.0169) 0.0266 0.0094
Total Income From Investment Operations 0.0495 0.0827 0.0360
Less Distributions
From net investment income (0.0406) (0.0613) (0.0159)
From net realized gains (0.0276) (0.0001) (0.0113)
Total Distributions (0.0682) (0.0614) (0.0272)
Net Asset Value, End of Period $ 1.0114 $ 1.0301 $ 1.0088
Total Return 4.86% 8.25% 3.60%
Net Assets, End of Period $ 17,142,458 $ 15,519,563 $ 268,416
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% *
Ratio of Net Investment Income to
Average Net Assets 3.94% 4.81% 8.83% *
Portfolio Turnover Rate 80.14% 99.16% 25.56%
*Annualized
(A) The portfolio commenced operations on September 9, 1997.
</TABLE>
<PAGE>
ADDITIONAL INFORMATION
The Statement of Additional Information ("SAI") contains more details about the
investment policies and techniques of the Portfolios. A current SAI is on file
with the SEC and is incorporated into this Prospectus by reference. This means
that the SAI is legally considered a part of this Prospectus even though it is
not physically contained within this Prospectus.
Additional information about the Portfolios' investments is available in the
Fund's annual and semi-annual reports to shareholders. In the Fund's annual
report, you will find a discussion of the market conditions and investment
strategies that significantly affected the Portfolios' performance during its
last fiscal year.
For a free copy of the SAI or annual or semi-annual reports or to request other
information or ask questions about a Fund, call 1-800-338-4015.
The SAI and the annual and semi-annual reports are available on the SEC's
Internet Web site (http://www.sec.gov). You can also obtain copies of this
information, upon paying a duplicating fee, by writing the Public Reference
Section of the SEC, Washington, D.C. 20549-6009, or by electronic request at the
following e-mail address: [email protected]. You can also review and copy
information about the Portfolios, including the SAI, at the SEC's Public
Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the
operation of the SEC's Public Reference Room.
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER, 811-7735.
This prospectus should be read
and retained for future reference.
