Fellow Shareholders:
There's still little agreement among market watchers about which dynamics
are driving what markets and when. Does anybody care?
We sure don't. All that really matters is that this is the greatest bull
market of all time.
Indeed, even as the so-called pundits continue to question the condition
of the market, investors continue to reap its rewards: a payoff for their
patience; for sticking with their strategies; for maintaining a discipline;
for keeping their long-term plans.
It was just two years ago that the markets were so decidedly
unpleasant-when fears of "the correction" so dominated the investment
landscape. And it was just two years ago we reminded you-and
ourselves-that long-term investment strategies don't have to time the
market to get a good return. It is time in the market, not timing of the
market, that determines success.
It wasn't easy to hold the course in such a volatile market, but those
who did are most likely being rewarded for it now. And our hats are off to
you all.
We're proud of the manner in which the IDEX Fund 3 portfolio manager has
guided and positioned your fund through these dramatic market changes. And
we are, of course, delighted with the extraordinary results posted for this
period. Please take a few minutes and review the personal comments from
your portfolio manager. We invite you to evaluate these reports and review
the data, including major equity positions and industry weightings. All of
this information is intended to provide insight into some of the industry's
finest performances.
So far, 1996 is off to a spectacular start, faster even than the stock
market's historical average return of 10% a year. And not too surprisingly,
the sensational advances of recent months are becoming a bit unnerving-it's
only natural to fear that the markets are about to "run out of gas." Can
another stunning year lie ahead? Can the economy roll along strongly enough
to boost profits while not pushing interest rates higher? Will the
presidential election cycle keep investors on edge much of the year? Who
knows? Forecasts are like reading yesterday's newspaper, and as often as
not, the common wisdom is way off-as it was in 1994 and 1995.
For ourselves, we aren't making any predictions on what will happen in
the rest of 1996. After all, in the short-term, the markets are unknowable.
But long-term, they're inevitable. The secret to wealth accumulation in the
market is long-term investing and not worrying about the interim peaks and
troughs. History has shown that investors see better results the longer
they hold their investment. And we're in it for the long-term-we're
investors.
If it's true that success solicits success, then we're justified in our
optimistic outlook for the rest of this year. IDEX Fund 3 is managed not
only with long-term results in mind but long-term relationships as well.
Our highest priority remains the safety of the investment you've entrusted
to us. We respect your personal task of financial planning and appreciate
the opportunity to help.
Sincerely yours,
/s/ G. John Hurley
/s/ John R. Kenney
Recently, the overall market produced its share of fireworks, as investors
worried about rate increases, the future of corporate profits, and whether
the economy was too strong or too weak. Three separate one-day declines in
the Dow Jones Industrials over the past six months ranked among the top-ten
point declines since 1987, according to The Wall Street Journal (March 19,
1996). But as the same article pointed out, on a percentage basis these
declines were relatively small by historical standards.
IDEX Fund 3 outperformed its benchmark index, the S&P 500, for the six
months ended April 30, 1996. We invite you to review its corresponding
Portfolio Performance page for details.
Although economic conditions are always difficult to predict, we believe
that Federal Reserve Chairman Alan Greenspan is probably correct in his
recent assessment. While the economy may be a bit stronger than was
estimated as the year began, it is still growing at a moderate clip, well
within healthy, sustainable parameters. As long as inflation remains under
control at the wholesale and retail levels, we expect the economy will stay
on track.
On the political front, however, a significant casualty during the period
was the lack of a balanced budget agreement, which appears to have been
shelved indefinitely. This may come back to haunt the market later, but so
far stocks have absorbed the blow without too much disturbance.
Not much changed in the Fund during this period. We remain comfortable with
the long-term valuations of our holdings. We are also very confident in
these companies' ability to out-earn (on an earnings-per-share basis) the
market averages going forward, and expect their ratio of outperformance to
buoy their stock prices.
IDEX Fund 3 continues to emphasize those industry sectors we believe will
be helped by economic and demographic trends. These include healthcare,
financial, telecommunications, technology, and selected retailers. As
always, we have tried to purchase companies that have exceptional
individual characteristics. We are not interested in owning an industry, no
matter how attractive its macro environment may seem.
Some of the better performers during the period included Cisco Systems,
which dominates the market for products that allow large computer networks
to communicate with each other; U.S. Robotics Corp., a manufacturer of high-
speed modems; and Ascend Communications, Inc., which makes Internet
connecting equipment. HBO & Co., a processor of information for hospitals,
also registered strong price growth. Finally, drug manufacturer Pfizer had
an encouraging quarter due to an improving process of speeding products to
market.
Since year end 1995, we've believed more volatile markets were to be
expected. To date this has proven true. It also appears this increased
volatility will stay with us as the year progresses, which could lead to
more of the sharp rotations among industries we have seen year to date.
Investors may also swing back and forth between growth stocks, which are
often thought of as defensive, and more economically-sensitive (or
cyclical) stocks. We have already experienced some shifting between the two
groups in the first quarter. Despite these factors, we will stick to our
knitting, looking for companies with outstanding growth selling at
reasonable prices.
Market volatility usually creates pricing inefficiencies, and we will
continue to take advantage of price declines to build positions. When
stocks get ahead of themselves, however, and valuations are out of line,
we'll be content to take profits-and perhaps revisit the shares later at
more attractive prices.
/s/ Scott W. Schoelzel
Scott W. Schoelzel
IDEX Fund 3 Portfolio Manager
Performance
A hypothetical $10,000 invested in IDEX Fund 3 at inception (4/20/87) was
worth $35,170.
<TABLE>
<CAPTION>
Average Annual Total Returns
For the Period Ended 4/30/96*
From Inception
6 months 1 year 5 year Inception Date
<S> <C> <C> <C> <C> <C>
IDEX Fund 3
(without sales load) 15.43% 50.11% 16.28% 16.07% 4/20/87
IDEX Fund 3**
(with sales load) 5.62% 37.38% 14.22% 14.84% 4/20/87
S&P 500*** 13.76% 30.05% 14.86% 12.76% 4/20/87
* IDEX Fund 3 performance includes dividends and capital gains reinvested.
Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past
performance does not guarantee future results. Total return for periods
less than one year are not annualized.
** IDEX Fund 3 performance reflects the maximum sales charge of 8.5%.
*** The Standard & Poor's 500 Stock Index is an unmanaged index used as a
general measure of market performance. Calculations assume dividends
and capital gains are reinvested and do not include any managerial
expenses.
</TABLE>
<TABLE>
<CAPTION>
Investments by major industry
as a percentage of net assets
April 30, 1996
4/30/96 10/31/95
<S> <C> <C>
Consumer Cyclical 9.0% 4.5%
Consumer Non-cyclical 17.4% 13.4%
Financial 16.5% 14.9%
Independent 0.9% --
Industrial -- 0.3%
Technology 41.7% 50.6%
Long-term U.S. Gov't 7.7% --
Short-term 7.1% 16.5%
</TABLE>
This material must be preceded or accompanied by the Fund's current
prospectus which includes information about the sales commissions,
objectives, policies and other facts about the Fund.
April 30, 1996 Fund 3
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS (unaudited)
Shares Description Value
COMMON STOCK (81.5%)
<S> <C> <C>
Consumer, Cyclical (7.9%)
Broadcasting (0.8%)
48,780 Infinity Broadcasting Corp. Class A * $1,414,620
Clothing/Fabric (2.9%)
20,000 Fila Holding SpA # 1,365,000
70,600 Gucci Group N.V. # * 3,838,875
5,203,875
Entertainment (1.8%)
17,225 Trump Hotel & Casino Resorts, Inc.* 557,659
43,100 Walt Disney Company 2,672,200
3,229,859
Footware (2.3%)
46,925 Nike, Inc. Class B 4,105,937
Retail-Cosmetics (0.1%)
7,300 Estee Lauder Companies - Class A * 267,363
Consumer, Non-Cyclical (17.4%)
Beverages (3.2%)
62,300 Coca-Cola Company 5,077,450
12,050 Pepsico, Inc. 765,175
5,842,625
Food - Retailers (0.5%)
32,350 Starbucks Corp. * 877,494
Health Care (5.3%)
104,600 Oxford Health Plans, Inc. * 5,282,300
30,025 Pacificare Health Systems, Inc. Class B * 2,518,346
31,325 United Healthcare Corp. 1,832,513
9,633,159
Pharmaceuticals (8.4%)
35,298 Astra AB A-Free + 1,568,603
9,375 BioChem Pharma, Inc. * 426,563
41,175 Eli Lilly and Company 2,429,325
24,600 Johnson & Johnson 2,275,500
77,500 Pfizer, Inc. 5,337,812
56,950 SmithKline Beecham PLC # 3,075,300
5,949 SmithKline Beecham PLC Class A + 63,172
15,176,275
Financial (16.5%)
Banks (6.8%)
39,000 Chase Banking Corp. 2,686,125
60,150 Citicorp 4,736,813
19,900 Wells Fargo & Company 4,828,238
12,251,176
Diversified (4.8%)
109,150 First Data Corp. 8,295,400
112,950 Grupo Financiero Inbursa S.A. Class B + * 440,372
8,735,772
Securities Brokers (2.7%)
80,225 Merrill Lynch and Company, Inc. 4,843,584
U.S. Government Agency (2.2%)
20,925 Federal Home Loan Mortgage Corp. 1,744,622
76,615 Federal National Mortgage Association 2,346,334
4,090,956
Independent (0.9%)
Conglomerates
21,875 General Electric Company 1,695,313
Technology (38.8%)
Advanced Medical Devices (0.9%)
30,325 Medtronic, Inc. 1,611,016
Aerospace/Defense (0.8%)
18,275 The Boeing Company $1,500,833
Biotechnology (2.8%)
50,825 Amgen, Inc. * 2,922,438
22,825 Chiron Corp. * 2,199,759
5,122,197
Communications (14.0%)
25,875 America Online, Inc. * 1,656,000
146,050 Ascend Communications, Inc. * 8,982,074
75,037 Glenayre Technologies, Inc. * 3,489,221
77,375 PictureTel Corp. * 2,630,750
40,650 Premisys Communications Inc. * 1,778,438
43,125 US Robotics Corp. 6,749,063
25,285,546
Computers (8.0%)
120,150 Cisco Systems, Inc. * 6,232,781
31,550 Shiva Corp. * 1,885,113
67,325 StrataCom, Inc. * 3,500,900
44,225 Sun Microsystems, Inc. * 2,399,205
12,450 Verity, Inc. * 427,969
14,445,968
Software (12.3%)
16,325 Broderbund Software, Inc. * 718,300
7,425 Dialogic Corp. * 345,263
52,150 HBO & Company 6,192,812
9,750 HNC Software, Inc. * 363,188
9,850 HPR, Inc. * 423,550
59,225 Informix Corp. * 1,562,059
28,325 Intuit, Inc. * 1,472,900
45,075 Microsoft Corp. * 5,110,378
36,725 Netscape Communications Corp. * 2,240,225
48,425 PeopleSoft, Inc. * 3,050,775
14,775 Red Brick Systems, Inc. * 875,419
22,354,869
Total Common Stock (cost $92,685,520) 147,688,437
NON-CONVERTIBLE PREFERRED STOCK (2.9%)
Technology
Software
39,106 Sap AG Vorzug + (cost $2,296,905) 5,200,164
<CAPTION>
Principal Description Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (1.1%)
Consumer, Cyclical
Entertainment
$2,000,000 Trump Atlantic City
11.250% 5-1-06 (cost $2,000,000 ) 2,040,000
LONG-TERM U.S. GOVERNMENT SECURITIES (7.7%)
79,141,000 United States Principal Only Treasury Strip
0.000%, 8-31-20 (cost $13,960,828) 13,934,356
SHORT-TERM U.S. GOVERNMENT AGENCIES (3.8%)
2,000,000 Federal Home Loan Mortgage Acceptance
Corp., 5.170%, 5-17-96 1,995,404
5,000,000 Federal National Mortgage Association
5.150%, 5-28-96 4,980,688
Total Short-Term U.S. Government Securities (cost $6,976,092) 6,976,092
COMMERCIAL PAPER (3.3%)
$5,900,000 Prudential Funding Corp.
5.300%, 5-1-96 (cost $5,900,000) $5,900,000
Total Investments (100.3%) (cost $123,819,345) 181,739,049
<CAPTION>
Notional
Amount Description Value
<S> <C> <C> <C> <C>
UNREALIZED GAIN ON FORWARD FOREIGN
CURRENCY CONTRACTS (0.1%)
3,500,000 German Deutschemark 7-11-96 Sell 79,270
3,707,000 German Deutschemark 8-22-96 Sell 132,005
Total Unrealized Gain on Forward Foreign Currency Contracts 211,275
Liabilities in Excess of Other Assets (-0.4%) (725,593)
Net Assets (100.0%) $181,224,731
Notes to Schedule of Investments
+ Foreign securities.
# American Depository Receipts or Global Depository Receipts.
* Presently non-income producing.
See Note 1 to financial statements for security valuation and other
significant accounting policies.
See Note 5 to financial statements for cost and unrealized appreciation
and depreciation of investments for Federal income tax purposes.
</TABLE>
April 30, 1996 IDEX Fund 3
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (unaudited)
All numbers (except per share amounts) in thousands
<S> <C>
Assets:
Investment securities, at market value (identified cost $123,819) $181,739
Cash 50
Receivables:
Dividends 72
Interest 9
Forward foreign currency contracts (Notes 1,4) 211
Other 4
Total assets 182,085
Liabilities:
Accounts payable:
Investment securities purchased 716
Accrued liabilities (Note 2):
Management and advisory fees 18
Transfer agent fees and expenses 66
Other 60
Total liabilities 860
Net Assets $181,225
Net asset value per share (net assets divided by shares outstanding) $18.88
Add maximum selling commission (8.50% of offering price)(1) 1.75
Offering price per share $20.63
</TABLE>
<TABLE>
<CAPTION>
For the six months ended April 30, 1996
STATEMENT OF OPERATIONS (unaudited)
All numbers in thousands
<S> <C>
Investment Income:
Interest $827
Dividends 530
1,357
Expenses (Note 2):
Management and advisory fees 851
Transfer agent fees and expenses 141
Custody fees and expenses 42
Registration fees 18
Audit fees and expenses 12
Trustees fees and expenses 16
Other 25
1,105
Custodian earnings credits (36)
Net expenses 1,069
Net investment income 288
Realized and unrealized gain on investments and foreign currency
(Note 1):
Net realized gain on investments 9,676
Net realized gain from foreign currency transactions 140
Net realized gain 9,816
Net unrealized appreciation during the period on:
Investments 14,345
Translation of assets and liabilities denominated in
foreign currency 312
Net unrealized appreciation during the period 14,657
Net gain on investments and foreign currency 24,473
Net increase in net assets resulting from operations $24,761
(1) On sales equal to or greater than $10,000 the selling commission is reduced
as set forth in the prospectus.
</TABLE>
IDEX Fund 3
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
All numbers in thousands.
Six months ended
April 30, 1996 Year ended
(unaudited) 10/31/95
<S> <C> <C>
Increase (decrease) in net assets from:
Operations:
Net investment income $288 $154
Net realized gain on investments and foreign
currency transactions 9,816 31,370
Net unrealized appreciation during period 14,657 12,692
Net increase in net assets resulting from
operations 24,761 44,216
Distributions to shareholders:
From net investment income: - (606)
From net realized gains on investments and foreign
currency transactions (31,161) (1,463)
(31,161) (2,069)
Shares of beneficial interest transactions:
Proceeds from sale of shares 2,800 3,892
Shares issued on reinvestment of distributions 30,740 2,033
Cost of shares repurchased (12,901) (34,762)
Net increase (decrease) from share transactions 20,639 (28,837)
Net increase in net assets 14,239 13,310
Net Assets:
Beginning of period 166,986 153,676
End of period $181,225 $166,986
Net Assets consist of (Note 1):
Shares of beneficial interest, unlimited shares
authorized 112,941 92,302
Undistributed net investment income 288 -
Undistributed net realized gain from investments and
foreign currency transactions 9,866 31,211
Net unrealized appreciation of investments and
on translation of assets and liabilities in
foreign currencies 58,130 43,473
Total net assets $181,225 $166,986
Shares of beneficial interest:
Shares sold 153 244
Shares issued on reinvestment of distributions 1,817 144
Shares redeemed (705) (2,224)
Net increase (decrease) in shares outstanding 1,265 (1,836)
Shares outstanding at beginning of period 8,336 10,172
Shares outstanding at end of period 9,601 8,336
</TABLE>
The notes to financial statements are an integral part of these statements.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS IDEX Fund 3
For a share of beneficial interest outstanding
throughout each period 6 months
ended
April 30, Oct 31, Oct 31,
1996(5) 1995 1994
<S> <C> <C> <C>
Net asset value at beginning of period $20.03 $15.11 $17.45
Net investment income 0.04 0.02 0.06
Net realized and unrealized gain (loss) on
investments and foreign currency 2.61 5.12 (0.44)
Total income (loss) from investment
operations 2.65 5.14 (0.38)
Dividends from net investment income - (0.07) (0.04)
Distributions from net realized capital gains
and foreign currency (3.80) (0.15) (1.92)
Total distributions (3.80) (0.22) (1.96)
Net asset value at end of period $18.88 $20.03 $15.11
Total return (1) 15.43% 34.66% (3.36)%
Net assets at end of period (000's) $181,225 $166,986 $153,676
Ratio of expenses to average net assets (2) 1.29% 1.36% 1.25%
Ratio of net investment income to average
net assets 0.17% 0.10% 0.28%
Portfolio turnover rate (3) 30.75% 122.95% 80.92%
Average commission rate (4) 0.0410 - -
<CAPTION>
Oct 31, Oct 31, Oct 31,
1993 1992 1991
<S> <C> <C> <C>
Net asset value at beginning of period $17.32 $18.74 $12.53
Net investment income 0.09 0.09 0.13
Net realized and unrealized gain (loss) on
investments and foreign currency 2.54 0.34 6.87
Total income (loss) from investment
operations 2.63 0.43 7.00
Dividends from net investment income (0.09) (0.08) (0.20)
Distributions from net realized capital gains
and foreign currency (2.41) (1.77) (0.59)
Total distributions (2.50) (1.85) (0.79)
Net asset value at end of period $17.45 $17.32 $18.74
Total return (1) 16.39% 2.62% 58.58%
Net assets at end of period (000's) $201,481 $196,495 $197,498
Ratio of expenses to average net assets (2) 1.24% 1.22% 1.28%
Ratio of net investment income to average
net assets 0.52% 0.50% 0.84%
Portfolio turnover rate (3) 123.58% 86.46% 104.97%
Average commission rate (4) - - -
(1) Total return has been calculated without deduction of any sales load on
an initial purchase. Short periods (where applicable) are not
annualized.
(2) Expense ratio reduced by custody earnings credits would have been 1.30%
for six months ended April 30, 1996, and 1.36% for the year ended
October 31, 1995.
(3) This rate is calculated by dividing the average value of the Fund's
long-term investments during the period into the lesser of its
respective long-term purchases or sales during the period. Short
periods (where applicable) are not annualized.
(4) This rate is calculated by dividing total commissions paid on purchases
and sales of securities during the period by total shares purchased or
sold in those same transactions and is reported for periods ended April
30, 1996 and forward to the extent that commissionable trades
constitute more than 10% of the average net assets for the period.
(5) Unaudited.
</TABLE>
IDEX Fund 3
NOTES TO FINANCIAL STATEMENTS (unaudited)
April 30, 1996
NOTE 1. Organization and Significant Accounting Policies:
IDEX Fund 3 (the "Fund") is organized as a Massachusetts business trust and
is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Fund is organized as a
series fund but currently offers only one series of shares. The following is a
summary of significant accounting policies consistently followed by the Fund in
the preparation of its financial statements. The policies are in conformity
with generally accepted accounting principles.
IDEX Fund 3
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
April 30, 1996
NOTE 1. Organization and Significant Accounting Policies (continued):
A. Security valuations: Investments of the Fund traded on a national
securities exchange and the NASDAQ National Market System are stated at the
last reported sales price on the day of valuation; securities traded in the over
the-counter market and listed securities for which no sale was reported on that
date are valued at the last quoted bid price. Foreign securities are converted
to U.S. dollars using exchange rates at the close of the New York Stock
Exchange. Long-term debt securities are valued by a major independent provider
of pricing services. Short-term debt securities are valued at amortized cost,
which approximates market. Other securities for which market quotations are not
readily available are valued at fair value, determined in such manner as the sub
adviser, under the supervision of the Board of Trustees, decides in good faith.
B. Security transactions and related investment income: Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed). Securities gains and losses are calculated on the specific
identification basis and dividend income is recorded on the ex-dividend date
for both financial and Federal tax reporting purposes; interest income is
recorded on the accrual basis, including amortization of premium and discount.
Original issue discount (as defined in the Internal Revenue Code) and market
premium and discount are amortized for both financial and Federal tax reporting
purposes over the remaining life of the related bonds.
C. Foreign currency translation: Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gain or loss from investments.
Transaction gains or losses on other assets and liabilities denominated in
foreign currencies resulting from changes in exchange rates during the reporting
period or upon settlement of the foreign currency transactions are reported in
the Statement of Operations for the current period. Foreign denominated assets
and the use of forward contracts may involve risks not typically associated with
domestic transactions, including unanticipated movements in exchange rates, the
degree of government supervision and regulation of security markets, and the
possibility of political or economic instability.
D. Federal taxes: It is the Fund's policy to distribute all of its taxable
income and net capital gains to its shareholders and otherwise qualify as a
regulated investment company under the Internal Revenue Code. In addition, the
Fund intends to pay distributions as required to avoid excise taxes.
Accordingly, no provision has been made for Federal taxes.
E. Distributions to shareholders: Dividends and distributions are recorded by
the Fund on the ex-dividend date. Income and capital gains distributions are
determined in accordance with Federal income tax regulations which may differ
from generally accepted accounting principles. Accordingly, permanent book and
tax basis differences relating to Fund earnings and shareholder distributions
are reclassified as necessary among components of net assets at each fiscal
year-end.
IDEX Fund 3
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
April 30, 1996
NOTE 2. Investment Advisory and Other Payments to/from Affiliates:
Idex Management, Inc. ("IMI") is the Fund's investment adviser; Idex Investor
Services, Inc. ("IIS") is the Fund's transfer agent; InterSecurities, Inc.
("ISI") is the Fund's principal underwriter; Janus Capital Corporation ("JCC")
is the Fund's sub-adviser; and Investors Fiduciary Trust Company ("IFTC") is the
Fund's custodian. IMI is owned equally by AUSA Holding Company ("AUSA") and
JCC. ISI and IIS are 100% owned by AUSA. AUSA is a wholly-owned indirect
subsidiary of AEGON N.V., a Netherlands corporation.
Under the terms of the Management and Investment Advisory Agreement, the Fund
pays management fees to IMI at the annual rate of 1.00% of average daily net
assets. Also, the Fund will be reimbursed by IMI to the extent that certain
operating expenses exceed the lesser of 1.50% of average daily net assets or any
limitation imposed by the most restrictive state law. No such reimbursements
were required for the period. The Fund pays IIS a monthly fee of $1.185 per
open account plus $2.48 for each new account opened. Under an agreement with
the Fund's custodian, Custody fees and expenses are reduced by credits granted
by the custodian from any temporarily uninvested cash. Custody fees and expenses
have been presented on a gross basis with the benefit of custodian earnings
credits apprearing as a reduction of total expenses in the accompanying
Statement of Operations. The Fund was advised that ISI received $97,873 and
retained $19,672 in underwriter commissions for six the months ended April 30,
1996.
NOTE 3. Investment Transactions:
The cost of securities purchased and proceeds from securities sold (excluding
non-U.S. Government short-term securities) for the six months ended April 30,
1996 were as follows:
<TABLE>
<S> <C>
Non-U.S. Government Purchases $35,112,012
Non-U.S. Government Sales 43,644,436
U.S. Government Purchases 56,528,011
U.S. Government Sales 41,022,375
</TABLE>
NOTE 4. Forward Currency Contracts:
Forward foreign currency contracts are contracts for delayed delivery of foreign
currency in which the seller agrees to make delivery at a future date a
specified amount of foreign currency, at a specified price or exchange rate.
Risks arise from changes in the market value of the underlying currency and from
the possible inability of counterparties to meet the terms of their contracts.
Forward foreign currency contracts are valued at the forward rate, and are
marked to market daily. The change in market value is recorded by the Fund as
an unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed.
IDEX Fund 3
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
April 30, 1996
NOTE 5. Information for Federal Income Tax Purposes:
At April 30, 1996, the cost of investment securities was $123,819,345 and net
unrealized appreciation of investments aggregated $57,919,704, of which
$58,426,538 related to appreciated securities and $506,834 related to
depreciated securities.
IDEX Fund 3
TRUSTEES
Peter R. Brown
Largo, Florida
Chairman of the Board,
Peter Brown Construction Company
Daniel Calabria
S. Pasadena, Florida
Retired; Former President/CEO
Templeton Funds Management, Inc.
James L. Churchill
Hilton Head, South Carolina
Retired; former President of the Avionics
Group of Rockwell International Corporation
Charles C. Harris
Belleair, Florida
Retired; former Senior Vice President, Western
Reserve Life Assurance Co. of Ohio
G. John Hurley
Largo, Florida
President and Chief Executive Officer
of the Fund;
President and Chief Executive Officer
of InterSecurities, Inc.
John R. Kenney
Largo, Florida
Chairman of the Board of the Fund;
Chairman of the Board of InterSecurities, Inc.
Julian A. Lerner
Dallas, Texas
Adviser to Board of Associated
Financial Group
William W. Short, Jr.
Largo, Florida
Chairman, Southern Apparel Corporation
and S.A.C. Distributors
Jack E. Zimmerman
Dayton, Ohio
Retired; former Director, Regional Marketing,
Martin Marietta Corporation
TRANSFER AGENT
Idex Investor Services, Inc.
P.O. Box 9015
Clearwater, Florida 34618-9015
OFFICERS
John R. Kenney
Chairman of the Board
G. John Hurley
President and Chief
Executive Officer
Thomas R. Moriarty
Senior Vice President
William H. Geiger
Vice President and
Assistant Secretary
Leslie E. Martin, III
Vice President - Marketing
Becky A. Ferrell
Vice President, Counsel
and Secretary
Christopher G. Roetzer
Assistant Vice President and
Principal Accounting Officer
Richard B. Franz II
Treasurer
Our corporate offices
are located at:
201 Highland Avenue
Largo, Florida 34640
CUSTOMER SERVICE
(800) 851-9777
Hours: 8 a.m. to 7 p.m. Eastern time
IDEX ASSIST LINE
(800) 421-IDEX (4339)
24-hour automated account information
INVESTMENT
ADVISER
Idex Management, Inc.
201 Highland Avenue
Largo, Florida 34640
SUB-ADVISER
Janus Capital Corporation
100 Fillmore Street, Suite 300
Denver, Colorado 80206
PRINCIPAL
UNDERWRITER
InterSecurities, Inc.
201 Highland Avenue
Largo, Florida 34640
CUSTODIAN
Investors Fiduciary Trust
Company
Kansas City, Missouri 64105
Please send all correspondence
to the Transfer Agent
INDEPENDENT
ACCOUNTANTS
Price Waterhouse LLP
1055 Broadway
Kansas City, Missouri 64105
If you receive duplicate mailings because you have more than one account in
the same Fund or in the IDEX II Series Fund, at the same household, you may
wish to save your Fund money by consolidating your accounts by address.
Please call IDEX Customer Service at (800) 851-9777.
