<PAGE> 1
SECURITY
FUNDS
- -------------------------------------------------------------------------------
SEMI-ANNUAL
REPORT
MARCH 31, 1999
- SECURITY
GROWTH AND
INCOME FUND
- SECURITY EQUITY
FUND
- EQUITY SERIES
- GLOBAL SERIES
- ASSET
ALLOCATION
SERIES
- SOCIAL
AWARENESS
SERIES
- VALUE
SERIES
- SMALL
COMPANY
SERIES
- ENHANCED
INDEX
SERIES
- INTERNATIONAL
SERIES
- SELECT 25 SERIES
- SECURITY ULTRA
FUND
SECURITY DISTRIBUTORS, INC.
A Member of The Security Benefit
Group of Companies
<PAGE> 2
PRESIDENT'S COMMENTARY
- -------------------------------------------------------------------------------
MAY 15, 1999
To Our Shareholders:
[PHOTO]
John Cleland
The six month period ended March 31, 1999 continued to be characterized by two
distinct features in the equity markets. The first of these is the
ever-narrowing list of stocks producing positive investment returns. The second
is the continuation of enormous volatility in the marketplace.
THE NARROW FOCUS OF THE MARKETPLACE
Increasingly, large-cap highly visible growth stocks have become the primary
focus of the investment markets. This means that shareholders focused on value,
income, or small- and mid-cap companies have found it difficult to achieve
competitive investment returns. Broadly diversified portfolios with investment
objectives other than a singular focus on large-cap growth stocks have suffered
as well.
We continue to believe that over the remainder of the year we will see
investors' attention expand to include a wider universe of stocks with better
investment returns than we have experienced in recent months. The primary reason
for this belief is simply that the valuation gap between ignored sectors (such
as value, income, and small companies) and the gradually shrinking number of
large-cap "star" growth stocks is becoming increasingly compelling, making those
sectors look comparatively more rewarding over the long term.
VOLATILITY WILL REMAIN A FACTOR
Recent events in Kosovo remind us that the world remains a troubled place.
Because the U.S. is the only global superpower, different challenges continue to
present themselves to our leadership, with the potential to be enormously
destructive to short-term market psychology. Market volatility such as we have
experienced in recent months is creating great noise in the markets on a daily
basis. This noise can be disruptive to long-term investment planning. We remind
our shareholders that time is an investor's best friend. We believe that in
order for you to carry out your commitment to a long-term investment plan,
ignoring the short-term volatility is the best strategy for wealth accumulation.
THE ECONOMIC OUTLOOK REMAINS BRIGHT
We expect the U.S. domestic economy to remain robust through the remainder of
the year, driven by strong consumer confidence and spending. We also look for
the productivity improvement story to remain a powerful contributor to low
inflationary pressures in our economy. We believe the Federal Reserve Bank will
remain on hold with its interest rate policy for the next six months, reflecting
concern about a continued troubled global environment.
A NEW SUBADVISOR AND NEW PORTFOLIOS
We welcome Bankers Trust Company to our family of subadvisors as they take on
investment responsibility for our new International Series and the Enhanced
Index Series. We are also introducing our Select 25 Series which offers
investors a more concentrated investment strategy, centered around a
buy-and-hold approach to ownership of what we believe to be some of the world's
greatest companies.
On the following pages our portfolio managers discuss the performance of their
respective funds. As always, we thank you for your continuing investment in
Security products. We invite your questions and comments at any time.
Sincerely,
/s/ John Cleland
- ------------------------
John Cleland, President
The Security Funds
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1
<PAGE> 3
MANAGER'S COMMENTARY
- -------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND
MAY 15, 1999
To Our Shareholders:
[PHOTO]
Michael A. Peterson
Portfolio Manager
During the first six months of the fiscal year for the Growth and Income Fund we
have seen a continuation of the environment in which low risk strategies have
been out of favor. Portfolios which use value-oriented and income-oriented
strategies fell short of the popular averages such as the Standard & Poor's 500
Stock Index, which rose 27.34% over the six-month period. The Growth and Income
Fund returned 8.72% in the first half of the fiscal year, lagging its Lipper
peer group average of 20.06%.(1)
ONLY A FEW STOCKS LED MARKET PERFORMANCE
For much of 1998 a small number of stocks led the surge in the major stock
market indexes. In September and October the markets broadened, with a wider
variety of issues benefiting from the climb in prices, but since that time we
have returned to the same narrowness that prevailed in earlier months. For
example, in the quarter ended March 31 the S&P 500 Stock Index rose nearly 5%,
but 2/3 of the stocks in the index underperformed this 5% rate of return. It is
even more surprising, perhaps, to note that 55% of the index's stocks actually
produced negative returns for the quarter. Portfolio managers who followed a
strategy of broad portfolio diversification and thus owned only small positions
or no positions in the few leading index stocks suffered in overall performance.
ENERGY ISSUES GAINED AS OIL PRICES ROSE
In the Growth and Income Fund an increase in the weighting of energy stocks was
beneficial in the September through December period. When crude oil was selling
for about $11 per barrel we increased the energy holdings to 15% of the equity
portion of the portfolio from the previous 5% weighting. Oil has since risen to
the $16 to $17 per barrel range. Energy stocks have moved up well, but still do
not fully reflect the price increase of oil and have potential to rise further
in value. We added particularly to the oil services sector with companies such
as Schlumberger, Ltd., Halliburton Company, and Baker Hughes, Inc., as well as
the exploration and production companies like Apache Corporation and Burlington
Resources, Inc.
A WARM WINTER HURT UTILITIES' EARNINGS
Our large position in utility stocks, traditional holdings in growth and income
portfolios, has hurt performance. Electric utility companies and gas utilities
both saw earnings hurt by a warmer-than-usual winter in much of the country. The
only positive for many of these companies has been consolidation within the
industry, but even this bright spot saw companies being purchased at only small
premiums. El Paso Energy Corporation, for example, bought rival Sonat, Inc.,
which we owned in the portfolio, at only an 18% premium to its stock's market
price. Another of our holdings, Consolidated Natural Gas Company, was purchased
by Dominion Resources, Inc. at a 15% premium over its pre-announcement stock
price.
- -------------------------------------------------------------------------------
2
<PAGE> 4
MANAGER'S COMMENTARY (CONTINUED)
- -------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND
MAY 15, 1999
But as with other value-oriented portfolios, the Growth and Income Fund suffered
more from what it didn't own. An underweighting in large capitalization
technology and health care stocks, many of which trade at very high
price/earnings multiples, was the largest deterrent to performance. These
high-multiple issues don't qualify for the selection discipline which we use in
this portfolio, given their current growth rates.
ECONOMIC GROWTH MAY SLOW
We believe we are nearing a time in which economic growth will slow from its
unusually brisk pace of the past year. In a slowing environment it may be
difficult for companies to generate income growth. An inability to raise prices
because of competition from cheap imports, along with emerging wage pressures,
could cause difficulties in sustaining today's high valuation levels for many
firms. We expect stock markets to be volatile, with sharp declines becoming a
more frequent occurrence, and annual total returns to be closer to historic
levels of 10% to 12%. In a slowing environment, we believe low-risk strategies
such as the one used in the Growth and Income Fund will outperform.
Michael A. Petersen
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- -----------------------------------PERFORMANCE---------------------------------
- -------------------------------------------------------------------------------
TOP 5 HOLDINGS**
% of
Net Assets
----------
Royal Dutch Petroleum
Company ADR 2.7%
Schlumberger, Ltd. 2.3%
Bank One Corporation 1.8%
GTE Corporation 1.7%
Philip Morris Companies, Inc. 1.7%
**At March 31, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 year 5 years 10 years
------ ------- --------
A Shares (7.80%) 13.57% 10.86%
A Shares with sales charge (13.12%) 12.24% 10.21%
B Shares (8.72%) 12.42% 10.49%
(10-19-93)
(since inception)
B Shares with CDSC (13.28%) 12.17% 10.49%
(10-19-93)
(since inception)
C Shares 1.46% N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC 0.46%
(1-29-99)
(since inception)
- -------------------------------------------------------------------------------
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
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3
<PAGE> 5
MANAGER'S COMMENTARY
- -------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY SERIES
MAY 15,1999
To Our Shareholders:
[PHOTO]
Terry Milberger
Portfolio Manager
The first six months of the fiscal year were disappointing for the Equity
Series. Although the portfolio returned an attractive 22.11% over the period,
its Lipper peer group average return was 28.23%.(1) The benchmark S&P 500 Stock
Index rose 27.34% over the same time frame.
TECHNOLOGY STOCKS LED THE MARKETS
The technology sector was clearly the strongest performing group of stocks the
past six months. Although we owned some of the leading names including Microsoft
Corporation, Sun Microsystems, Inc. and Cisco Systems, Inc., our total weighting
of technology issues in the portfolio was less than that of the benchmark index.
At the beginning of the fiscal year we held about 12% of the portfolio in the
technology industry and increased it over the period to 15%, but this still lags
the approximate 20% weighting in the S&P 500 index.
The technology sector had been a strong performer through the first six months
of 1998. We expected it to slow from that point as concerns about a general
economic slowdown developed and thus would be a deterrent to further strong
performance by the technology industry. We unfortunately were wrong on that
assumption. On the positive side, however, our 3% weighting in Microsoft and our
positions in Sun Microsystems, Cisco Systems, and Lucent Technologies, Inc. have
all added to total return, although they were smaller positions in the portfolio
than in the benchmark index. Certain other holdings also held back performance
in the six months just completed. National retail drugstore chain Rite Aid
Corporation lost over 40% during the period after announcing an earnings
shortfall which was attributed primarily to aggressive plans for opening new
stores. Saks, Inc., operator of several department store chains, also reported
weaker-than-expected sales and resulting disappointing earnings, and had a
negative impact on fund performance.
SOME OUTSTANDING STOCK SELECTIONS
Still, not all the news was bad. One of our best stocks was Sprint Corporation
(PCS Group) which rose over 190% on reports of subscriber growth that was
stronger than expected. This company is very well managed, and could be an
acquisition target in the wireless communications industry's current "merger
mania."
Other performance leaders in the six month period included Omnicom Group, Inc.,
an operator of advertising agencies. This stock climbed nearly 75% as it
expanded its presence in the internet advertising business. Drug manufacturer
American Home Products Corporation has a bright new product outlook and is
considered to be an attractive merger candidate. These attributes, ones which
fit nicely with our growth focus, led the stock up over 20% during the period.
MODERATE GROWTH AND LOW INFLATION AHEAD
We believe the U.S. economy will experience moderate growth and continuing low
inflation in the months ahead. We plan to maintain our emphasis on growth, with
the portfolio now about 90% in growth stocks and 10% in value-oriented issues.
We plan to reduce the number of holdings from the current ninety issues to
closer to seventy, with emphasis
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4
<PAGE> 6
MANAGER'S COMMENTARY (CONTINUED)
- -------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY SERIES
MAY 15,1999
on a core of established growth companies. We will focus on large-cap names
primarily, with fewer midcap issues than in past months. We believe any premium
to be achieved over benchmark returns will be attained through picking the right
sectors and the leading stocks within those sectors.
Terry Milberger
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- -----------------------------------PERFORMANCE---------------------------------
- -------------------------------------------------------------------------------
TOP 5 HOLDINGS**
% of
Net Assets
----------
Microsoft Corporation 2.9%
General Electric Company 2.0%
MCI WorldCom, Inc. 1.9%
Omnicom Group, Inc. 1.7%
Schering-Plough Corporation 1.7%
**At March 31, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 year 5 years 10 years
------ ------- --------
A Shares 11.77% 23.22% 18.39%
A Shares with sales charge 5.35% 21.76% 17.69%
B Shares 10.60% 21.96% 19.51%
(10-19-93)
(since inception)
B Shares with CDSC 5.60% 21.78% 19.51%
(10-19-93)
(since inception)
C Shares (0.69%) N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC (1.69%) N/A N/A
(1-29-99)
(since inception)
- -------------------------------------------------------------------------------
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
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5
<PAGE> 7
MANAGER'S COMMENTARY
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SECURITY EQUITY FUND - EQUITY GLOBAL SERIES
MAY 15, 1999
[OPPENHEIMERFUNDS LOGO]
To Our Shareholders:
[PHOTO]
William L. Wilby
Portfolio Manager
OppenheimerFunds assumed the role of subadvisor for the Global Series of
Security Equity Fund on November 2, 1998. We immediately put to work our primary
investment strategy of building a diversified global portfolio of good companies
in good businesses at good prices.
EMERGING MARKET DIFFICULTIES HAVE NEGATIVE MARKET IMPACT
The Series provided a return of 21.52% for the six-month period ended March 31,
1999, slightly above the 21.44% average return of its Lipper peer group, but
slightly lagging the 24.69% gain of the benchmark MSCI World Index.(1) These
gains were achieved despite a sharp decline in global equity markets which
occurred early in the period. The decline was driven primarily by deepening
economic difficulties in emerging markets around the world. It became apparent
that Asia's persisting financial crisis had spread to Russia. This provoked
fears of a worldwide economic slowdown, and prompted investors to shift their
assets away from any investments they perceived as risky.
Such risky investments included those in Japan, where the stock market has been
in decline for several years. As the global equity markets declined, Japan's
political and economic leadership remained unable to pull the country out of its
long recession. The Japanese government, though, has recently begun to see
results from programs designed to restructure the economy.
MULTINATIONAL COMPANIES HURT DESPITE STRONG U.S. AND EUROPEAN ECONOMIES As a
result of investors' concerns the stocks of companies in emerging markets,
including Eastern Europe, Asia, Russia and South America were hit hardest.
However, even though the European and U.S. economies remained strong, profits
declined among multinational companies due to weakening foreign demand for their
products. As corporate profit growth slowed, average stock prices fell sharply
in Europe and the United States.
It took a decisive move by the Federal Reserve Board to begin to stabilize the
global markets. On October 15, 1998, the Fed stepped in with a surprise cut in
government lending rates. The move succeeded in bolstering investor confidence.
It signaled the Fed's willingness to act purposefully in attempting to avoid a
recession in the United States.
This show of strength and the renewed confidence in the U.S. and other developed
economies eased fears of a worldwide slowdown and global equities began to rise
almost as quickly as they had fallen. The only exceptions were the Latin
American markets, which experienced a setback due to a recent devaluation of the
Brazilian real. Markets in Europe, Asia and the United States have continued to
rise.
A STRONG OUTLOOK FOR THE U.S. AND EUROPE
Looking forward, we believe the U.S. economy will remain fundamentally strong,
and that productivity improvements in Europe will continue to drive growth in
the region. Signs of recovery can also be seen in some emerging markets. In our
opinion, the Series is well positioned to benefit from global growth. We remain
dedicated to our disciplined approach of participating in that growth while
striving to cushion the effects of global volatility.
William L. Wilby
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
Investing in foreign countries may involve risks, such as currency fluctuations
and political instability, not associated with investing exclusively in the U.S.
- -------------------------------------------------------------------------------
6
<PAGE> 8
MANAGER'S COMMENTARY (CONTINUED)
- -------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY GLOBAL SERIES
MAY 15, 1999
Shareholders' Meeting
A special meeting of the shareholders of the Global Series of Security Equity
Fund was held on October 28,1998. At this meeting the following matters were
voted on by the shareholders:
- - A new sub-advisory contract between Security Management Company, LLC, and
OppenheimerFunds, Inc. was voted on. The total number of eligible votes were
1,455,183. The results of the vote was 1,344,431 in favor and 110,752 votes
against and abstentions.
- - A change in the fundamental policies as follows:
a. To amend the fundamental investment limitation concerning underwriting.
Votes For: 1,220,847 Votes Against: 234,336
b. To amend the fundamental investment limitation concerning borrowing.
Votes For: 1,205,249 Votes Against: 249,934
c. To amend the fundamental investment limitation concerning
lending.
Votes For: 1,201,960 Votes Against: 253,223
d. To eliminate the fundamental investment limitation concerning
margin purchases of securities and short sales.
Votes For: 1,184,892 Votes Against: 270,291
e. To eliminate the fundamental investment limitation concerning investment in
other investment companies.
Votes For: 1,213,907 Votes Against: 241,276
f. To amend the fundamental investment limitation regarding owning,
buying, selling or otherwise dealing in commodities or commodity
contracts.
Votes For: 1,208,028 Votes Against: 247,155
G. To amend the fundamental investment limitation concerning diversification.
Votes For: 1,229,307 Votes Against: 225,876
H. To amend the fundamental investment limitation concerning senior securities.
Votes For: 1,219,539 Votes Against: 235,644
I. To eliminate the fundamental investment limitation concerning
investment in companies with less than three years' operating history.
Votes For: 1,204,429 Votes Against: 250,754
J. To eliminate the fundamental investment limitation concerning purchasing
securities of an issuer in which the officers and directors of the Fund,
Investment Manager or Underwriter own more than 5% of the outstanding
securities of such issuer.
Votes For: 1,202,868 Votes Against: 252,315
K. To eliminate the fundamental investment limitation concerning warrants.
Votes For: 1,202,112 Votes Against: 253,071
L. To eliminate the fundamental investment limitation concerning
restricted securities.
Votes For: 1,210,749 Votes Against: 244,434
M. To eliminate the fundamental limitation concerning investments in puts,
calls, stradles or spreads.
Votes For: 1,195,948 Votes Against: 259,235
N. To eliminate the fundamental limitation concerning investments in oil, gas,
mineral leases or other mineral exploration development programs.
Votes For: 1,223,113 Votes Against: 232,070
- --------------------------------PERFORMANCE------------------------------------
TOP 5 HOLDINGS**
% of
Net Assets
----------
QUALCOMM, Inc. 4.0%
Canal Plus 3.7%
Porsche AG 3.2%
Roche Holding AB 2.9%
Sun Microsystems, Inc. 2.5%
** At March 31, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 year 5 years 10 years
------ ------- --------
A Shares 5.30% 11.11% 10.76%
(10-1-93)
(since inception)
A Shares with sales charge (0.75%) 9.80% 9.58%
(10-1-93)
(since inception)
B Shares 4.31% 10.02% 9.87%
(10-19-93)
(since inception)
B Shares with CDSC (0.69%) 9.74% 9.87%
(10-19-93)
(since inception)
C Shares (0.31%) N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC (1.31%) N/A N/A
(1-29-99)
(since inception)
- -------------------------------------------------------------------------------
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
- -------------------------------------------------------------------------------
7
<PAGE> 9
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES
MAY 15, 1999
[MERIDIAN LOGO]
SUBADVISOR: MERIDIAN INVESTMENT MANAGEMENT CORPORATION
To Our Shareholders:
The Asset Allocation Series did well in the first half of the fiscal year,
rising 14.51% compared with a Lipper peer group average of 13.41%.(1) An
overweighting in equities, both domestic and foreign, along with a rising
Japanese market were the primary drivers of positive returns.
[PHOTO]
Patrick S. Boyle
Portfolio Manager
EXTRA EMPHASIS ON STOCKS
The Series has overweighted both domestic and foreign equities relative to its
benchmark target weightings for the past six months. This aggressive stance has
proved beneficial, as global equity markets posted excellent results. In the
domestic market, large capitalization indexes have raced to new highs. The Dow
Jones Industrial Average, a price-weighted equity benchmark, was very near the
10,000 level at the end of March. Publicity about the 10,000 milestone
highlighted the strong performance of large cap stocks in the current bull
market. Recent market appreciation, however, has not been broad. Many mid- and
small-cap stocks, although recovering from their October 1998 lows, have not
kept pace with the narrow market advance.
TECHNOLOGY AND CONSUMER CYCLICAL STOCKS WERE STRONG PERFORMERS
The Series has benefited from its concentration in technology stocks, which have
led the market for much of the last six months. Many tech stocks, including
holdings in the semiconductor and networking industries, have doubled following
the market's late summer correction in 1998. Technology issues currently
represent approximately 15% of the portfolio. The second largest concentration
is in the consumer cyclical sector. This sector, which includes the retail
segment of the market, gained ground on the continued strength of the domestic
economy.
INVESTMENTS IN FOREIGN MARKETS
Internationally, the Series is positioned in Europe and Japan. In the last six
months European equities resumed their upward trends as the European continent
successfully transitions to the new unified currency, the Euro. Despite fears
highlighted by the financial press, the initial currency conversion was nearly
transparent. Banks and other financial institutions had spent years preparing
for the event. The only negative short term trend has been the Euro's
depreciation relative to the dollar. However, as European countries continue to
integrate and synergies are realized, the outlook for the currency should
improve.
The top performing equity market in the portfolio over the six months was Japan.
The Asian crisis has received considerable publicity in the last few years, but
recent trends in the region are encouraging. Japanese governmental policies to
stimulate the economy and address its structural issues are finally being well
received by the global marketplace. The Japanese market rose nearly 37% in
dollar terms in the last six months.
OUTLOOK FOR THE MONTHS AHEAD
The U.S. bond market saw yields increase during the last six months. We do not
believe this rate rise will continue, since inflation continues to be measured
near all-time lows. We are confident that any further
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8
<PAGE> 10
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES
MAY 15, 1999
increase in bond yields will represent a good fixed income buying opportunity.
Fears of a global recession and excessive equity valuation were short-lived, as
most markets quickly recovered from the 1998 July through October correction.
Based on current market valuations we remain bullish on domestic and
international equity markets. Although global equities have rallied considerably
in the last several years, they have done so in response to strengthening
fundamentals. With growing earnings and low interest rates, global equity
markets remain compelling investment opportunities.
Patrick S. Boyle
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
Investing in foreign countries may involve risks, such as currency fluctuations
and political instability, not associated with investing exclusively in the U.S.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 EQUITY HOLDINGS**
% of
Net Assets
----------
<S> <C>
Deutsche Telekom AG 1.6%
Allianz AG 1.5%
Nike, Inc. (Cl.B) 1.4%
EMC Corporation 1.2%
Toyota Motor Corporation 1.2%
** At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 year Since Inception
------ ---------------
<S> <C> <C> <C>
A Shares 2.57% 10.51% (6-1-95)
A Shares with sales charge (3.33%) 8.81% (6-1-95)
B Shares 1.61% 9.48% (6-1-95)
B Shares with CDSC (3.39%) 8.87% (6-1-95)
C Shares N/A (1.13%) (1-29-99)
C Shares with CDSC N/A (2.13%) (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
- --------------------------------------------------------------------------------
9
<PAGE> 11
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES
MAY 15, 1999
To Our Shareholders:
[PHOTO]
Cindy Shields
Portfolio Manager
The first six months of the fiscal year were very favorable for the Social
Awareness Series. The portfolio rose 26.91% over the period, compared with its
Lipper peer group average return of 23.53%.(1) The return compared favorably
with the Standard and Poor's 500 Stock Index, which was up 27.34% for the six
months. The benchmark Domini Social Index rose 31.66% over the same period.
LEADING PERFORMANCE SECTORS
The best-performing group in the portfolio was technology, up over 45% overall.
This sector makes up about 24% of total assets and includes such companies as
Microsoft Corporation, Cisco Systems, Inc., Sun Microsystems, Inc., and Tellabs,
Inc. Also producing strong results was the consumer cyclicals sector, and
particularly the retail stocks within the sector. Outstanding performance came
from three retail issues: Dayton Hudson Corporation rose over 85%, TJX
Companies, Inc. climbed over 90%, and Lowe's Companies, Inc. was up more than
102% during the six-month period. These retail stocks were close to their 1998
low price levels at the end of September, and we believed they presented
excellent values for purchase at that time in view of the strong spending habits
consumers were exhibiting.
Communications services stocks also did well. Leading our holdings in this
sector was Sprint Corporation (PCS Group), which operates digital personal
cellular communications systems. The stock rose over 190% during the six months
on reports of subscriber growth that exceeded expectations. The company is also
expected to be an acquisition target in the industry's current "merger mania."
MCI WorldCom, Inc., also a communications services company, climbed steadily in
price over the six months as well, generating an 87% total return.
SOME LESS-THAN-STELLAR PERFORMERS, TOO
In a market in which large-cap growth oriented stocks were the clear winners,
our utility sector holdings were a drag on total return. The sector as a whole
lost nearly 10% during the six-month period. Fortunately, utilities stocks
represented less than 1% of portfolio holdings. Basic materials companies also
fell on hard times, but again were a small portion of our assets at less than 2%
of holdings.
Strong cash inflows may have held back performance a bit. Our practice is to
remain fully invested, but in markets which continue to rise steadily it is
often difficult to put cash to work immediately. Our cash position averaged from
5% to 7% of assets over the six-month period as we sought opportune times to
invest the inflows.
MCDONALD'S REMAINS AN
OUTSTANDING SOCIAL SELECTION
McDonald's Corporation, which is one of our portfolio positions, continues to
excel as a socially conscious company. McDonald's makes significant efforts to
purchase supplies from and contract with women- and minority-owned businesses.
The company has a comprehensive program to promote employment of the disabled
and has provided Braille
- --------------------------------------------------------------------------------
10
<PAGE> 12
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES
MAY 15, 1999
menus in its domestic restaurants. McDonald's sixteen-member Board of Directors
includes one woman and three minorities. We are pleased to be able to own stock
in companies who put into practice the ideals of socially conscious investors.
As we once again enter proxy voting season, we remind our shareholders that we
vote our proxies in accordance with our social screens. If you would like to see
how we vote on any particular issue, please feel free to ask. We know that
shareholder advocacy is a prime concern of investors in socially-oriented funds.
Cindy Shields
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Microsoft Corporation 4.6%
Intel Corporation 3.1%
Merck & Company, Inc. 2.9%
AT&T Corporation 2.7%
Cisco Systems, Inc. 2.6%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 Year Since Inception
------ ---------------
<S> <C> <C> <C>
A Shares 18.58% 22.81% (11-1-96)
A Shares with sales charge 11.79% 19.82% (11-1-96)
B Shares 17.36% 21.50% (11-1-96)
B Shares with CDSC 12.36% 20.55% (11-1-96)
C Shares N/A (1.26%) (1-29-99)
C Shares with CDSC N/A (2.26%) (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
- --------------------------------------------------------------------------------
11
<PAGE> 13
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - VALUE SERIES
MAY 15, 1999
To Our Shareholders:
[PHOTO]
Jim Schier
Portfolio Manager
The first six months of the fiscal year produced an attractive 19.59% total
return for the Value Series, slightly lagging the Lipper peer group average of
20.06% for the period.(1) It was also very close to the 20.76% return of the
benchmark S&P/Barra Value Index.
TECHNOLOGY THE BRIGHTEST SPOT
The biggest contributor to total return was outstanding stock selection within
the technology sector. Comverse Technology, Inc., which manufactures and sells
computer and telecommunications systems and software, rose more than 103% in the
six month period. The stock was purchased at a time when we believed its price
to be undeservedly depressed because of the weak performance of midcap stocks.
We believed it would perform well since the business trends and contract
signings appeared favorable.
Other portfolio holdings in the technology sector did well also. Rational
Software Corporation was up over 70%, with good business momentum being fueled
by its new software development tools for the Internet. In the
telecommunications equipment portion of the technology sector ANTEC Corporation,
which designs and engineers equipment which enables high-speed transmission of
video and data, climbed steadily on good earnings results. S3, Inc., a supplier
of multimedia acceleration equipment to the personal computer market, was up
over 80% after rolling out new products and announcing a joint venture with
Intel.
WHAT WE DIDN'T OWN HELPED, TOO
Sometimes what we don't own boosts performance relative to benchmarks and
competitors also. We held only about half as much energy stock as the benchmark,
and even less in the utility sector. However, we added some gas-oriented
domestic exploration and production companies at the end of February. Severe oil
depletion rates in the Gulf of Mexico, along with increasing natural gas usage
by utilities, marked a turning point in fundamentals in our view. New positions
in the energy sector include Anadarko Petroleum Corporation, Apache Corporation,
Burlington Resources, Inc., Evergreen Resources, Inc., and Chieftain
International, Inc.
HEALTH CARE STOCKS WEAKENED DURING THE PERIOD
In a reversal of previous strength, our two largest positions in the health care
services sector lost ground. The stock of Integrated Health Services, Inc., a
nursing home operator, fell nearly 70% over the six months as the transition to
prospective payment systems and harsher Medicare budget reimbursement levels
caused investors to flee. We believe the company has value, however, in its
businesses other than nursing homes and plan to stay with the stock awhile
longer.
Sunrise Medical, Inc., a company which designs and manufactures wheelchairs and
other assisted-living health care durables, has been undergoing a restructuring
process. Since their sales are largely to heath services groups, their recovery
has been delayed. In our view the company is making good progress in its
restructuring program, and is worth being patient with its stock price movement.
THE SEARCH CONTINUES FOR OUT OF FAVOR GROWTH STOCKS Our basic strategy of
seeking growth-oriented companies which are temporarily out of favor will
continue. The weakness in many technology software and service companies which
has been created by diversion of tech-dedicated funds from capital projects to
pay for solutions to the Year 2000 problems is creating unusually attractive
opportunities in this sector.
- --------------------------------------------------------------------------------
12
<PAGE> 14
MANAGER'S COMMENTARY (CONTINUED)
SECURITY EQUITY FUND - VALUE SERIES
MAY 15, 1999
While we continue to be frustrated by the disparities between large-cap and
smaller company stock prices, we believe the longer this gap continues the more
potential is being created in stocks of small companies with sound businesses.
Since its inception the Value Series has performed well versus large-cap value
funds despite its orientation toward the underperforming midcap issues, which
confirms our belief in the potential for the fund once these midcap issues
return to favor.
Jim Schier
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Comverse Technology, Inc. 5.6%
RailAmerica, Inc. 3.8%
Rational Software Corporation 3.1%
AFLAC, Inc. 2.7%
Sonic Corporation 2.7%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 Year Since Inception
------ ---------------
<S> <C> <C> <C>
A Shares (0.10%) 22.77% (5-1-97)
A Shares with sales charge (5.84%) 19.04% (5-1-97)
B Shares (1.22%) 21.56% (5-1-97)
B Shares with CDSC (6.16%) 19.81% (5-1-97)
C Shares N/A (1.16%) (1-29-99)
C Shares with CDSC N/A (2.16%) (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
- --------------------------------------------------------------------------------
13
<PAGE> 15
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SMALL COMPANY SERIES
MAY 15, 1999
[STRONG LOGO]
To Our Shareholders:
[PHOTO]
Ronald C. Ognar
Portfolio Manager
The Small Company Series of Security Equity Fund enjoyed strong performance in
the first half of the fiscal year. The Series returned a positive 22.07% for the
six-month period ending March 31, 1999, handily beating both its Lipper peer
group average return of 12.53% and the benchmark Russell 2000 Index's 10.13%
rise.(1)
THE FED'S INTEREST RATE CUTS BOOSTED 1998 FOURTH QUARTER MARKETS The bearish
sentiment that began the fourth quarter of 1998 quickly reversed when a recovery
in the foreign markets and three successive interest rate cuts by the Federal
Reserve Bank sparked a rapid recovery in U.S. stocks. Large-cap and
technology-related issues led the resurgence as investors scrambled to put their
heavy cash positions back to work. Internet stocks and initial public offerings
(IPOs) were traded up to such high levels that traditional valuation measures
became pointless. Growth stocks continued to outperform value stocks in all
market cap segments, as investors paid up for companies with visible earnings.
FIRST QUARTER 1999 CONTINUED TO FAVOR BIG COMPANY STOCKS
The first quarter of 1999 began with uncertainty over the fate of the Brazilian
economy and the fate of our forty-second president. But as earnings reports came
in, it became apparent that U.S. multinational corporations were adapting to the
demand pressures from Asia. Market participants decided to stay invested, but
chose the most marketable equities just in case.
In February rising interest rates and talk of excessive valuations prompted
several prominent strategists to recommend reducing exposure to equities.
Investors decided to take some money off the table until it was clear in which
direction the Fed was leaning. Gross Domestic Product numbers released late in
February showed the U.S. economy growing 3.9% in 1998, matching the strong
growth of 1997. Investors charged back into large-cap technology and internet
stocks, propelling the S&P 500 to another record high and the Dow Jones
Industrial Average above the 10,000 hurdle.
During the six-month period we increased our portfolio weight in technology as
the sector continued to benefit from explosive growth in network and other
computer-related spending. The computer software
- --------------------------------------------------------------------------------
14
<PAGE> 16
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SMALL COMPANY SERIES
MAY 15, 1999
industry, in particular, is a heavy favorite of ours because of its increasing
importance to the global telecommunication explosion. We reduced our exposure to
capital equipment over the period.
OUR OUTLOOK FOR THE COMING SIX MONTHS
We believe the remainder of 1999 will see a selective market, in which leading
companies that can deliver favorable earnings will continue to be rewarded. The
market appears to be driven by liquidity from double-digit money supply growth,
solid nominal GDP growth, higher year-end bonus pay, and mortgage refinancing,
rather than by overall corporate earnings momentum. Although inflation remains
subdued and interest rates remain low, we continue to monitor stock valuations
and volatility in the market and will use any pullbacks to add to our favorite
high-quality growth companies.
Ronald C. Ognar
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge. Fee waivers reduced Fund expenses and in the absence of
such waivers, the performance quoted would be reduced.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Geotel Communications
Corporation 2.5%
Optical Coating Laboratory, Inc. 2.5%
Carrier Access Corporation 2.5%
Quicksilver, Inc. 2.4%
Entrust Technologies, Inc. 2.4%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 Year Since Inception
------ ---------------
<S> <C> <C> <C>
A Shares (1.12%) 4.25% (10-15-97)
A Shares with sales charge (6.84%) 0.11% (10-15-97)
B Shares (2.43%) 3.06% (10-15-97)
B Shares with CDSC (7.31%) 0.34% (10-15-97)
C Shares N/A (4.93%) (1-29-99)
C Shares with CDSC N/A (5.88%) (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
- --------------------------------------------------------------------------------
15
<PAGE> 17
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
MAY 15, 1999
[BANKERS TRUST LOGO]
To Our Shareholders:
[PHOTO]
Sidney Hoots
Portfolio Manager
Bankers Trust is pleased to have been selected as the subadvisor for the
Enhanced Index Series of Security Equity Fund. The Series began operations
January 31, 1999. The core portfolio is designed to contain approximately 80% of
the companies represented in the Standard and Poor's 500 Stock Index. Through
the use of Bankers Trust's proprietary screening process we will select
approximately one-fourth of these core stocks which in our view have
above-average potential for appreciation in the coming months, and another
one-fourth with less-than-average potential. We will overweight or underweight
these stocks accordingly, with the goal of adding extra value above the return
of the S&P 500 Index itself.
THE SCREENS WE USE
We plan to overweight a stock in the portfolio relative to its weighting in the
benchmark index when one or more of the following shows up on our screens: the
company reports a positive earnings surprise, the company becomes an acquisition
target, it is announced that the company will be added to the S&P Index, the
stock has a high dividend yield or a zero dividend yield (if further research
shows that the company uses the funds for internal investment), or the stock's
price shows significant value based on options pricing techniques. Conversely,
we consider underweighting a stock if there is a negative earnings surprise, if
the company issues a seasoned equity offering (as opposed to an initial public
offering of stock), or if financials show downward momentum. If none of these
positive or negative screens apply, we will hold a neutral position in the
stock.
HOW OUR SCREENS HAVE WORKED IN THESE EARLY MONTHS
In the two months of existence of the Enhanced Index Series we achieved positive
returns from our Corporate Acquisitions, Announced Index Candidates, Momentum,
and Seasoned Equity Offerings screenings. Negative contributors to performance
were the Dividend Yield, Deep Value and Earnings Surprise screens.
OUR OUTLOOK FOR THE MARKETS
Despite softness in key employment statistics for March partly reflecting
weather distortions, we do not believe there has been any slackening in the
underlying strength of the labor market or the U.S. economy. Consumer
fundamentals remain extremely favorable and spending shows no signs of slowing,
while housing activity remains on a high plateau. Indeed, even the industrial
sector, which has been the weak link in the U.S. economic juggernaut, has begun
to show signs of life lately. Meanwhile, rising commodity prices and some other
evidence of price pressures in manufacturing suggest some greater inflation down
the road. But nothing dramatic is likely on the inflation front soon, so the Fed
is likely to stay on hold at least into the summer.
- --------------------------------------------------------------------------------
16
<PAGE> 18
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
MAY 15, 1999
With the Federal Reserve on hold, market interest rates will probably move in a
fairly narrow range for awhile. A weak economy in Japan and lackluster growth in
Europe cloud the prospects for equity markets in these countries. More than
ever, the U.S. economy and financial markets serve as an engine for the rest of
the world. To be sure, strong growth and low inflation are helping the U.S.
stock markets, but there is palpable concern about narrowing profit margins.
Such concerns are heightened by the 1.7% decline in corporate profits for the
overall economy in the fourth quarter, the second consecutive quarterly decline.
This general weakness in profits may help to explain the lack of breadth in
recent equity market advances.
Sidney Hoots
Portfolio Manager
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Microsoft Corporation 3.1%
General Electric Company 2.4%
Wal-Mart Stores, Inc. 1.5%
America Online, Inc. 1.3%
Intel Corporation 1.3%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
Since Inception
---------------
<S> <C> <C>
A Shares 0.20% (1-29-99)
A Shares with sales charge (5.56%) (1-29-99)
B Shares 0.00% (1-29-99)
B Shares with CDSC (5.00%) (1-29-99)
C Shares 0.20% (1-29-99)
C Shares with CDSC (0.80%) (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The returns have been calculated from January 29, 1999 (date
of inception) to March 31, 1999 and are not annualized. The investment return
and principal value of an investment in the fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. The figures above do not reflect deduction of the maximum front-end sales
charge of 5.75% for Class A shares or the contingent deferred sales charge of 5%
for Class B shares and 1% for Class C shares, as applicable, except where noted.
Such figures would be lower if the maximum sales charge were deducted.
- --------------------------------------------------------------------------------
17
<PAGE> 19
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - INTERNATIONAL SERIES
MAY 15, 1999
[BANKERS TRUST LOGO]
To Our Shareholders:
[PHOTO]
Michael Levy,
Portfolio Manager
[PHOTO]
Robert Reiner,
Portfolio Manager
Bankers Trust is pleased to have been selected as the subadvisor for the
International Series of Security Equity Fund. The Series began operations
January 31, 1999. The portfolio holdings will consist largely of high quality,
undervalued midcap and large cap stocks of foreign issuers, both in developed
and underdeveloped countries. The managers will employ a bottom-up stock
selection process, looking first at individual companies. After
attractively-valued, inefficiently priced issues are chosen, the political and
economic conditions of the country in which the issuing company is located will
be taken into consideration.
[PHOTO]
Julie Wang
Portfolio Manager
STOCK MARKET ACTIVITY IN ASIA AND EUROPE
International investors shifted funds to Japan in the first quarter of 1999 on
optimism for restructuring and economic stimulus there. After a scorching
performance by Europe and the U.S. in 1998, investors have sought lagging
markets to add greater diversification to their portfolios. Heavy foreign buying
in Japan was met by domestic selling as Japanese corporations, investment trusts
and insurers sought to dump stock in record volumes. Even with strong foreign
interest, the Nikkei 225 Stock Index ended the fiscal year March 31, 1999 at its
lowest close in fourteen years.
News of slower economic growth in continental Europe and weakness in the new
European currency led to flat returns on the Continent and a 3.1% gain for the
U.K. An anticipated interest rate cut by the European Central Bank and
expectations that further mergers and acquisitions are imminent, especially in
the financial and telecom sectors, will highlight the attractive valuations to
be found on the Continent.
IMPROVING CONDITIONS IN EMERGING MARKETS
Emerging markets fared well in March with those in the Asia Pacific region
gaining 12% and in Latin America 23.1%. Asia's fears of impending yen weakness
have subsided. Despite the backup in U.S. bond yields interest rates in the
region continue to remain low, helping markets in South Korea, Hong Kong and
Singapore. In Latin America, Mexico is still performing strongly on the back of
robust growth in the U.S., a rebound in oil prices, and improved inflation data.
Brazil surged 36.8% in March given the increasing confidence in the
newly-appointed central bank president and the move to lower interest rates from
45% to 42%. Emerging Europe offered mixed results as attention focused on the
fighting in Kosovo.
STRATEGY AND POSITIONING FOR THE MONTHS AHEAD
Weakness in the new European currency and strength in Japanese equities have had
a negative impact on the portfolio's total return in its early months of
existence. We have taken measures to hedge some of the foreign exchange exposure
and have slightly increased our holdings in Japanese equities which we believe
can capture sustainable growth. We expect European markets to regain their
leading positions as soon as it becomes clear that economic recovery is
underway. We are reluctant to greatly increase our Japanese position, however,
believing that as earnings announcements for the fiscal year just ended and
forecasts for the new year are released in the coming weeks there, investors may
find their recent confidence ill-founded.
- --------------------------------------------------------------------------------
18
<PAGE> 20
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - INTERNATIONAL SERIES
MAY 15, 1999
Worldwide financial markets have become less risk averse in the past month with
cyclicals and emerging markets performing again. Emerging markets are benefiting
from strong global liquidity, higher estimates for worldwide Gross Domestic
Product (GDP) growth, and commodity price stability. Thus we have ventured back
to Mexico and Brazil based on favorable domestic developments which provide
greater comfort in the region's ability to weather the Brazilian crisis. The
delay in significant yen weakening has provided breathing space for the rest of
Asia to effect economic repair. If the yen declines gradually, as we expect,
Asia may more easily absorb the impact with limited consequences.
Michael Levy, Robert Reiner, and Julie Wang
Portfolio Managers
Investing in foreign countries may involve risks, such as currency fluctuations
and political instability, not associated with investing exclusively in the U.S.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Telecom Italia SpA 2.2%
Credito Italiano 1.9%
Nippon Telegraph &
Telephone Corporation 1.9%
Societe Generale D 1.8%
Enterprises S.A.
Suez Lyonnaise Des Eaux 1.8%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
Since Inception
---------------
<S> <C> <C>
A Shares (6.40%) (1-29-99)
A Shares with sales charge (11.78%) (1-29-99)
B Shares (6.50%) (1-29-99)
B Shares with CDSC (11.18%) (1-29-99)
C Shares (6.40%) (1-29-99)
C Shares with CDSC (7.34%) (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The returns have been calculated from January 29, 1999 (date
of inception) to March 31, 1999 and are not annualized. The investment return
and principal value of an investment in the fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. The figures above do not reflect deduction of the maximum front-end sales
charge of 5.75% for Class A shares or the contingent deferred sales charge of 5%
for Class B shares and 1% for Class C shares, as applicable, except where noted.
Such figures would be lower if the maximum sales charge were deducted.
- --------------------------------------------------------------------------------
19
<PAGE> 21
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SELECT 25 SERIES
MAY 15, 1999
To Our Shareholders:
[PHOTO]
TERRY MILBERGER,
Portfolio Manager
The Select 25 Series joins our family of mutual fund offerings with a very
successful start. In the two months of its existence since inception January 31,
1999 the Series gained 4%, more than doubling the performance of its benchmark
index, the S&P 500 Stock Index, which rose 1.29% over the same time period.(1)
HOW THE PORTFOLIO WAS CONSTRUCTED
Stock selection for the Select 25 Series was accomplished through a two-step
process. The first step was to determine what segments of the economy we
believed had the most growth potential, and the second was to select the premier
companies within these segments. We then built a master list of firms which we
expected to excel over time, trimming this list to the twenty-five companies
which we believed were the best in their respective industries.
We had no specific targets for sector weightings of the stocks. After the final
determination of the original twenty-five holdings, the resulting portfolio
contained about 30% in the combined technology/telecommunications industry and
another 20% in health care.
ONLY ONE CHANGE SINCE INCEPTION
Since the original portfolio was established we have changed only one holding.
Coca Cola Company was the twenty-fifth stock on our list; after watching its
performance in the first quarter of 1999 we felt its growth rate didn't justify
continuing to hold the stock. We sold the position and added Time Warner, Inc.,
representing the cable/entertainment industry. We believe Time Warner has the
potential to be the dominant company in its industry for several years to come.
In general, we expect turnover to be very low in this portfolio. One of the
goals in managing this type of fund is "tax efficiency," or the generation of
very low levels of realized taxable capital gains. We will only sell a stock if
we see a significant change in its actual or expected growth rate. We do not use
current valuation as a criterion; growth prospects are more important in our
choices.
STILL, A FEW CONCERNS
Although we select the portfolio holdings very carefully, we don't forget about
them once they are purchased. We monitor the stocks closely, watching for signs
that might cause us to be concerned about future performance. Among the current
stocks, we are watching Watson Pharmaceuticals, Inc., a midcap company which
manufactures and sells proprietary and off-patent pharmaceutical products. We
are awaiting its first quarter earnings report for more confirmation that its
growth rate is intact.
- --------------------------------------------------------------------------------
20
<PAGE> 22
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SELECT 25 SERIES
MAY 15, 1999
We are also keeping a close eye on Dell Computer Corporation. Although it was a
strong performer prior to the start of the Select 25 Series, it has disappointed
since then. Concerns about slowing growth in sales have caused investors to back
away from the stock. We will monitor its results before adding further to the
position.
A GOOD PERFORMER IN UP MARKETS AND DOWN
As long as larger growth companies continue to carry the major stock indexes to
new heights, we believe the Select 25 Series should be an excellent performer.
Even if we move to a climate in which midcap and small cap issues outperform
large-caps the companies selected for this portfolio should still hold value
because of their long histories of above-average growth. Even though we plan to
keep turnover at a minimum, we will still be vigilant in our monitoring of the
stocks and the markets in our efforts to provide outstanding investment results.
Terry Milberger
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Clear Channel Communications, Inc. 3.9%
Colgate-Palmolive Company 3.8%
Omnicom Group, Inc. 3.8%
Automatic Data Processing, Inc. 3.8%
America Online, Inc. 3.8%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
Since Inception
---------------
<S> <C> <C>
A Shares 4.00% (1-29-99)
A Shares with sales charge (1.98%) (1-29-99)
B Shares 3.90% (1-29-99)
B Shares with CDSC (1.10%) (1-29-99)
C Shares 4.00% (1-29-99)
C Shares with CDSC 3.00% (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The returns have been calculated from January 29, 1999 (date
of inception) to March 31, 1999 and are not annualized. The investment return
and principal value of an investment in the fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. The figures above do not reflect deduction of the maximum front-end sales
charge of 5.75% for Class A shares or the contingent deferred sales charge of 5%
for Class B shares and 1% for Class C shares, as applicable, except where noted.
Such figures would be lower if the maximum sales charge were deducted.
- --------------------------------------------------------------------------------
21
<PAGE> 23
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY ULTRA FUND
MAY 15, 1999
To Our Shareholders:
[PHOTO]
JIM SCHIER,
Portfolio Manager
Security Ultra Fund had an outstanding first six months of the fiscal year,
increasing 29.23% in value compared with its Lipper peer group average of
23.42%.(1) The benchmark S&P Midcap 400 Stock Index rose 19.24% over the same
time period.
THE RIGHT STOCKS TO OWN AND NOT TO OWN
Ownership of Internet stocks was a strong positive during the September through
December period. CMGI, Inc., a company that develops and integrates advanced
Internet and database management technologies, rose a sharp 322% during the
period we owned the stock. Professional services firm USWeb Corporation provides
Internet and web site solutions and marketing communications programs. The
company's stock was up 274% while it was in our portfolio.
Our heavy exposure to technology stocks--a 31% weighting versus the benchmark
index's 18%--provided a boost to performance. Names in this category included
Comverse Technology, Inc., Uniphase Corporation, VERITAS Software Corporation,
Electronics For Imaging, Inc., ANTEC Corporation, and Safeguard Scientifics,
Inc. These stocks had total returns ranging from 85% to 180% over the period.
Many of these stocks reached their lows for the year in mid-October. Most of
them were added to the portfolio at that time and rebounded sharply after
purchase.
Stocks we didn't own also helped performance. The utility sector suffered over
the period as earnings were damaged by an unusually warm winter. This sector
makes up nearly 12% of the benchmark S&P 400 Midcap Stock Index. We had no
utilities in the portfolio, and escaped the drag on total return they could have
caused.
SOME ENERGY STOCKS WERE WEAK PERFORMERS
The strongest negative to performance in the six months was the presence of
three underperforming energy stocks. As oil prices collapsed the more
independent, highly leveraged companies struggled to stay alive. Our positions
in Forcenergy, Inc., Ocean Energy, Inc., and Tesoro Petroleum Corporation fell
sharply as low oil prices eroded earnings.
Since the end of February oil prices have begun to rise. We felt at that time
that many of the gas-oriented domestic exploration and production companies were
undervalued, and have been
- --------------------------------------------------------------------------------
22
<PAGE> 24
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY ULTRA FUND
MAY 15, 1999
adding positions in the sector to the portfolio. Severe depletion rates in the
oil fields in the Gulf of Mexico, along with increasing natural gas usage by
utilities, makes such companies as Anadarko Petroleum Corporation, Apache
Corporation, Burlington Resources, Inc., and others appear attractive at such
depressed levels.
LOOKING FOR OPPORTUNITIES
Given the explosive rise in price of many of the stocks in the growth portion of
the markets--the same growth that gave us such favorable first-half
performance--investment opportunities in this area of the midcap market are now
more scarce. We believe some opportunities exist in midcap technology services
and software companies because of the diversion of funds from capital projects
in recent months to pay for solutions to the Year 2000 problems. This will be an
area of research priority, and may be a sector which we will expand in the
portfolio if valuations are favorable.
Jim Schier
Portfolio Manager
(1)Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
PERFORMANCE
<TABLE>
<CAPTION>
TOP 5 HOLDINGS**
% of
Net Assets
----------
<S> <C>
Comverse Technology, Inc. 8.7%
AFLAC, Inc. 5.1%
Rational Software Corporation 4.3%
Mylan Laboratories, Inc. 3.9%
American Management Systems, Inc. 3.2%
**At March 31, 1999
<CAPTION>
AVERAGE ANNUAL RETURNS
As of March 31, 1999
1 year 5 years 10 years
------ ------- --------
<S> <C> <C> <C>
A Shares 5.51% 13.80% 10.32%
A Shares with sales charge (0.54%) 12.46% 9.67%
B Shares 4.47% 12.69% 10.68%
(10-19-93)
(since inception)
B Shares with CDSC (0.53%) 12.44% 10.68%
(10-19-93)
(since inception)
C Shares (4.15%) N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC (5.10%) N/A N/A
(1-29-99)
(since inception)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. For Class C shares, the returns have
been calculated from January 29, 1999 (date of inception) to March 31, 1999 and
are not annualized. Such figures would be lower if the maximum sales charge were
deducted.
- --------------------------------------------------------------------------------
23
<PAGE> 25
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
PREFERRED STOCK OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKS & CREDIT - 0.2%
California Federal Bank, 9.125% ............. 7,000 $185,500
CORPORATE BONDS
- ---------------
BANKING - 0.2%
Homeside, Inc., 11.25% - 2003 ............... $ 121,000 142,024
CONSUMER CYCLICAL - OTHER - 0.1%
American Eco Corporation,
9.625% - 2008 ............................ $ 125,000 74,844
ELECTRIC UTILITY - 0.1%
Cal Energy Company, Inc.,
9.50% - 2006 ............................. $ 100,000 111,625
ENERGY - REFINING - 0.2%
Crown Central Petroleum,
10.875% - 2005 ........................... $ 200,000 185,500
ENTERTAINMENT - 0.1%
Empress Entertainment, Inc.,
8.125% - 2006 ............................ $ 75,000 75,375
FOOD - 0.1%
Nash Finch Company,
8.50% - 2008 ............................. $ 100,000 88,500
GAMING - 0.3%
MGM Grand, Inc., 6.95% - 2005 ............... $ 125,000 117,812
Mirage Resorts, Inc.,
6.625% - 2005 ............................ $ 125,000 121,250
--------------
239,062
HEALTH CARE - 0.1%
Multicare Companies, Inc.,
9.00% - 2007 ............................. $ 200,000 130,000
HOME CONSTRUCTION - 0.2%
Hovnanian Enterprise,
9.75% - 2005 ............................. $ 100,000 97,625
Toll Corporation, 7.75% - 2007 .............. $ 100,000 97,750
--------------
195,375
INSURANCE - 0.1%
General American Life Insurance
Company, 8.525% - 2027 ................... $ 75,000 74,531
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
CORPORATE BONDS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MEDIA - CABLE - 0.4%
CF Cable T.V., Inc.,
11.625% - 2005 ........................... $ 150,000 $ 165,000
CSC Holdings, Ltd.,
7.625% - 2018 ............................ $ 75,000 75,281
Jones Intercable, Inc.,
7.625% - 2008 ............................ $ 100,000 105,250
--------------
345,531
MEDIA - NONCABLE - 0.2%
Golden Books Publishing, Inc.,
7.65% - 2002 ............................. $ 200,000 86,000
Heritage Media Corporation,
8.75% - 2006 ............................. $ 100,000 107,375
--------------
193,375
METALS - 0.2%
Ameristeel Corporation,
8.75% - 2008 ............................. $ 100,000 100,250
Simcala, Inc., 9.625% - 2006 ................ $ 75,000 55,313
--------------
155,563
SERVICES - 0.1%
Loewen Group, Inc.,
6.70% - 1999 ............................. $ 75,000 45,750
TELECOMMUNICATIONS - 0.3%
Mastec, Inc., 7.75% - 2008 .................. $ 75,000 73,406
Satelites Mexicanos, Inc.,
10.125% - 2004 ........................... $ 200,000 160,500
--------------
233,906
--------------
Total corporate bonds - 2.7% ............................. 2,290,961
COMMON STOCKS
- -------------
AEROSPACE/DEFENSE - 1.5%
Boeing Company .............................. 37,500 1,279,687
AGRICULTURAL PRODUCTS - 0.5%
Archer-Daniels-Midland Company .............. 28,000 411,250
AUTO PARTS & EQUIPMENT - 1.7%
Dana Corporation ............................ 12,000 456,000
Genuine Parts Company ....................... 20,000 576,250
TRW, Inc. ................................... 8,000 364,000
--------------
1,396,250
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
24
<PAGE> 26
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY GROWTH AND INCOME FUND (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKS - MAJOR REGIONAL - 5.3%
Bank One Corporation ........................ 27,000 $ 1,486,687
BankAmerica Corporation ..................... 18,000 1,271,250
J.P. Morgan & Company, Inc. ................. 7,000 863,625
KeyCorp ..................................... 22,000 666,875
PNC Bank Corporation ........................ 4,000 222,250
--------------
4,510,687
BUILDING MATERIALS - 0.6%
Owens Corning Corporation ................... 16,000 509,000
CHEMICALS - BASIC - 2.3%
E.I. du Pont de Nemours & Company ........... 14,000 812,875
FMC Corporation* ............................ 11,000 543,125
Praxair, Inc. ............................... 16,000 577,000
--------------
1,933,000
CHEMICALS - SPECIALITY - 0.4%
Minnesota Mining & Manufacturing
Company .................................. 5,000 353,750
COMPUTER HARDWARE - 1.6%
Compaq Computer Corporation ................. 30,000 950,625
Sequent Computer Systems, Inc. .............. 40,000 362,500
--------------
1,313,125
COMPUTER SOFTWARE/SERVICES - 0.5%
Autodesk, Inc. .............................. 10,000 404,375
CONTAINERS & PACKAGING - 0.7%
Crown Cork & Seal Company, Inc. ............. 20,000 571,250
DISTRIBUTION - FOOD & HEALTH - 0.4%
SUPERVALU, Inc. ............................. 18,000 371,250
ELECTRICAL EQUIPMENT - 2.3%
Emerson Electric Company .................... 13,200 698,775
Honeywell, Inc. ............................. 8,000 606,500
Hubbell, Inc. (Cl.B) ........................ 15,000 600,000
--------------
1,905,275
ELECTRIC COMPANIES - 4.9%
Allegheny Energy, Inc. ...................... 13,000 383,500
American Electric Power
Company, Inc. ............................ 15,000 595,312
Baltimore Gas & Electric Company ............ 10,000 253,750
Cinergy Corporation ......................... 20,000 550,000
Kansas City Power & Light Company ........... 30,000 738,750
LG&E Energy Corporation ..................... 10,000 208,125
Northern States Power Company ............... 16,000 371,000
Potomac Electric Power Company .............. 20,000 463,750
Texas Utilities Company ..................... 13,700 571,119
--------------
4,135,306
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - DEFENSE - 1.8%
Advanced Micro Devices, Inc.* ............... 23,000 $ 356,500
Raytheon Company (Cl.B) ..................... 20,200 1,184,225
----------
1,540,725
ELECTRONICS - DISTRIBUTION - 0.5%
W.W. Grainger, Inc. ......................... 10,000 430,625
ELECTRONICS - SEMICONDUCTORS - 0.4%
National Semiconductor
Corporation* ............................. 39,000 363,188
ENGINEERING & CONSTRUCTION - 0.2%
Foster Wheeler Corporation .................. 16,000 194,000
FOODS - 2.5%
Chiquita Brands International, Inc. ......... 39,000 397,312
ConAgra, Inc. ............................... 10,000 255,625
General Mills, Inc. ......................... 8,100 612,056
Tyson Foods, Inc. ........................... 34,700 717,856
Universal Foods ............................. 7,000 144,375
----------
2,127,224
GAMING & LOTTERY - 0.1%
Park Place Entertainment
Corporation* ............................. 8,000 60,500
GOLD & PRECIOUS METALS MINING - 2.2%
Barrick Gold Corporation .................... 57,900 987,919
Newmont Mining Corporation .................. 22,000 385,000
Placer Dome, Inc. ........................... 40,000 447,500
----------
1,820,419
HEALTH CARE - LONG TERM CARE - 0.5%
HEALTHSOUTH Corporation* .................... 21,000 217,875
Integrated Health Services, Inc.* ........... 40,000 220,000
----------
437,875
HEALTH CARE - MANAGED CARE - 1.7%
Humana, Inc.* ............................... 40,000 690,000
United Healthcare Corporation ............... 13,500 710,437
----------
1,400,437
HOSPITAL MANAGEMENT - 0.5%
Columbia/HCA Healthcare
Corporation .............................. 24,200 458,287
HOUSEHOLD FURNISHINGS & APPLIANCES - 1.3%
Whirlpool Corporation ....................... 20,000 1,087,500
HOUSEHOLD PRODUCTS - 1.0%
Kimberly-Clark Corporation .................. 18,000 862,875
INSURANCE - BROKERS - 0.4%
Conseco, Inc. ............................... 11,000 339,625
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
25
<PAGE> 27
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY GROWTH AND INCOME FUND (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE - LIFE/HEALTH - 1.8%
Aetna, Inc. ................................. 8,000 $ 664,000
UNUM Corporation ............................ 18,000 856,125
--------------
1,520,125
INSURANCE - MULTILINE - 0.7%
Loews Corporation ........................... 8,000 597,000
INSURANCE - PROPERTY & CASUALTY - 2.6%
Chubb Corporation ........................... 10,000 585,625
SAFECO Corporation .......................... 19,000 768,312
St. Paul Companies, Inc. .................... 26,700 829,369
--------------
2,183,306
IRON & STEEL - 0.8%
USX-US Steel Group, Inc. .................... 30,000 705,000
LEISURE TIME PRODUCTS - 0.4%
Callaway Golf Company ....................... 32,000 326,000
LODGING - HOTELS - 0.1%
Hilton Hotels Corporation ................... 8,000 112,500
MACHINERY - DIVERSE - 1.7%
Deere & Company ............................. 29,700 1,147,162
Milacron, Inc. .............................. 16,000 252,000
--------------
1,399,162
MANUFACTURING - DIVERSIFIED - 0.9%
Tenneco, Inc. ............................... 28,000 782,250
MEDICAL PRODUCTS & SUPPLIES - 1.4%
Dentsply International, Inc. ................ 24,000 558,000
St. Jude Medical, Inc.* ..................... 26,200 638,625
--------------
1,196,625
NATURAL GAS - 3.8%
Consolidated Natural Gas Company ............ 15,000 730,312
Equitable Resources, Inc. ................... 20,000 521,250
People's Energy Corporation ................. 30,000 969,375
Sonat, Inc. ................................. 32,000 960,000
--------------
3,180,937
OFFICE EQUIPMENT & SUPPLIES - 0.2%
Corporate Express, Inc.* .................... 40,000 207,500
OIL - DOMESTIC - 1.7%
Atlantic Richfield Corporation .............. 6,000 438,000
PennzEnergy Company ......................... 20,000 210,000
Pennzoil-Quaker State Corporation ........... 20,000 247,500
Unocal Corporation .......................... 15,000 552,188
--------------
1,447,688
OIL - INTERNATIONAL - 3.8%
Royal Dutch Petroleum
Company ADR .............................. 43,600 2,267,200
Texaco, Inc. ................................ 15,900 902,325
--------------
3,169,525
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
OIL & GAS - DRILLING & EQUIPMENT - 4.6%
Baker Hughes, Inc. .......................... 28,000 $ 680,750
Halliburton Company ......................... 31,700 1,220,450
Schlumberger, Ltd. .......................... 32,600 1,962,113
--------------
3,863,313
OIL & GAS - EXPLORATION & PRODUCTION - 4.7%
Apache Corporation .......................... 16,000 417,000
Burlington Resources, Inc. .................. 19,000 758,813
Enron Oil & Gas Company ..................... 40,000 665,000
Kerr-McGee Corporation ...................... 18,000 590,625
MCN Energy Group, Inc. ...................... 25,000 401,563
Phillips Petroleum Company .................. 24,000 1,134,000
--------------
3,967,001
PAPER & FOREST PRODUCTS - 2.6%
Boise Cascade Corporation ................... 20,000 645,000
Champion International
Corporation .............................. 12,000 492,750
International Paper Company ................. 8,000 337,500
Louisiana-Pacific Corporation ............... 40,000 745,000
--------------
2,220,250
PHARMACEUTICAL - 0.9%
Teva Pharmaceutical Industries, Ltd. ........ 16,000 759,000
PHOTOGRAPHY - IMAGING - 1.3%
Eastman Kodak Company ....................... 12,000 766,500
Polaroid Corporation ........................ 16,000 321,000
--------------
1,087,500
PUBLISHING - 1.3%
Dow Jones & Company, Inc. ................... 16,000 755,000
R.R. Donnelley & Sons Company ............... 11,000 354,063
--------------
1,109,063
RAILROADS - 1.2%
Norfolk Southern Corporation ................ 7,300 192,538
Union Pacific Corporation ................... 16,000 855,000
--------------
1,047,538
REAL ESTATE INVESTMENT TRUSTS - 3.1%
Camden Property Trust ....................... 20,000 495,000
Highwoods Properties, Inc. .................. 30,000 706,875
HRPT Properties Trust ....................... 20,000 270,000
Liberty Property Trust ...................... 24,000 498,000
Simon Property Group, Inc. .................. 12,000 329,250
United Dominion Realty Trust, Inc. .......... 30,000 307,500
--------------
2,606,625
RESTAURANTS - 1.4%
CBRL Group, Inc. ............................ 15,000 270,000
Landry's Seafood Restaurants, Inc.* ......... 40,000 256,250
Wendy's International, Inc. ................. 22,600 642,688
--------------
1,168,938
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
26
<PAGE> 28
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY GROWTH AND INCOME FUND (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - DEPARTMENT STORES - 2.3%
Dillard's, Inc. ............................. 16,000 $ 406,000
Harcourt General, Inc. ...................... 12,000 531,750
J.C. Penney Company, Inc. ................... 24,000 972,000
--------------
1,909,750
RETAIL - SPECIALTY - 0.4%
Toys "R" Us, Inc.* .......................... 20,000 376,250
SERVICES - COMMERCIAL & CONSUMER - 0.3%
Laidlaw, Inc. ............................... 40,000 232,500
SERVICES - DATA PROCESSING - 0.9%
Electronic Data System
Corporation .............................. 16,000 779,000
TELECOMMUNICATION - 3.0%
Bell Atlantic Corporation ................... 20,800 1,075,100
GTE Corporation ............................. 24,000 1,452,000
--------------
2,527,100
TELECOMMUNICATION - LONG DISTANCE - 0.8%
AT&T Corporation ............................ 8,000 638,500
TEXTILES - APPAREL - 0.6%
Russell Corporation ......................... 24,000 483,000
TOBACCO - 3.1%
Fortune Brands, Inc. ........................ 16,000 619,000
Philip Morris Companies, Inc. ............... 39,700 1,396,944
UST, Inc. ................................... 24,000 627,000
--------------
2,642,944
TRUCKING - 0.4%
Werner Enterprises, Inc. .................... 24,000 378,000
WASTE MANAGEMENT - 1.4%
Allied Waste Industries, Inc.* .............. 18,000 259,875
Browning-Ferris Industries, Inc. ............ 23,000 886,938
--------------
1,146,813
--------------
Total common stocks - 90.0% .............................. 75,988,188
TEMPORARY CASH INVESTMENTS
DISCOUNT NOTES - 4.7%
Federal National Mortgage
Association, 4.87% - 1999 ................ $ 4,000,000 3,996,320
--------------
Total investments - 97.6% ................ 82,460,969
Cash and other assets, less liabilities - 2.4% 2,004,711
--------------
Total net assets - 100.0% ................ $84,465,680
==============
SECURITY EQUITY FUND - EQUITY SERIES
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOBILES - 0.6%
Ford Motor Company .......................... 115,000 $ 6,526,250
BANKS - MAJOR REGIONAL - 4.6%
Bank of New York Company, Inc. .............. 400,000 14,375,000
BankAmerica Corporation ..................... 145,000 10,240,625
Northern Trust Corporation .................. 200,000 17,762,500
Wells Fargo Company ......................... 240,000 8,415,000
--------------
50,793,125
BANKS - MONEY CENTER - 1.4%
Chase Manhattan Corporation ................. 190,000 15,449,375
BEVERAGES - ALCOHOLIC - 0.9%
Anheuser-Busch Companies, Inc. .............. 135,000 10,285,312
BEVERAGES - SOFT DRINK - 0.8%
PepsiCo, Inc. ............................... 230,000 9,013,125
BROADCAST MEDIA - 1.1%
Chancellor Media Corporation* ............... 250,000 11,781,250
BUILDING MATERIALS - 0.8%
Masco Corporation ........................... 315,000 8,898,750
COMMUNICATION EQUIPMENT - 1.0%
Lucent Technologies, Inc. ................... 105,000 11,313,750
COMPUTER HARDWARE - 3.1%
Compaq Computer Corporation ................. 200,000 6,337,500
International Business Machines
Corporation .............................. 60,000 10,635,000
Sun Microsystems, Inc.* ..................... 140,000 17,491,250
--------------
34,463,750
COMPUTERS - NETWORKING - 1.5%
Cisco Systems, Inc.* ........................ 150,000 16,434,375
COMPUTER SOFTWARE/SERVICES - 5.7%
BMC Software, Inc.* ......................... 250,000 9,265,625
Ceridian Corporation* ....................... 300,000 10,968,750
Computer Sciences Corporation* .............. 190,000 10,485,625
Microsoft Corporation* ...................... 360,000 32,265,000
--------------
62,985,000
DISTRIBUTION - FOOD & HEALTH - 1.5%
Cardinal Health, Inc. ....................... 150,000 9,900,000
McKesson HBOC, Inc. ......................... 111,000 7,326,000
--------------
17,226,000
ELECTRICAL EQUIPMENT - 2.7%
Emerson Electric Company .................... 150,000 7,940,625
General Electric Company .................... 200,000 22,125,000
--------------
30,065,625
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
27
<PAGE> 29
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - EQUITY SERIES (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - SEMICONDUCTORS - 0.8%
Intel Corporation ........................... 80,000 $ 9,530,000
ENTERTAINMENT - 1.6%
Time Warner, Inc. ........................... 160,000 11,370,000
Walt Disney Company ......................... 200,000 6,225,000
--------------
17,595,000
FINANCIAL - DIVERSE - 3.8%
American General Corporation ................ 150,000 10,575,000
Fannie Mae .................................. 230,000 15,927,500
Freddie Mac ................................. 270,000 15,423,750
--------------
41,926,250
FOODS - 1.8%
Bestfoods ................................... 240,000 11,280,000
ConAgra, Inc. ............................... 320,000 8,180,000
--------------
19,460,000
HEALTH CARE - DIVERSE - 4.2%
American Home Products
Corporation .............................. 260,000 16,965,000
Bristol-Myers Squibb Company ................ 280,000 18,007,500
Johnson & Johnson ........................... 120,000 11,242,500
--------------
46,215,000
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.8%
Leggett & Platt, Inc. ....................... 461,000 9,220,000
HOUSEHOLD PRODUCTS - 2.2%
Colgate-Palmolive Company ................... 100,000 9,200,000
Procter & Gamble Company .................... 150,000 14,690,625
--------------
23,890,625
INSURANCE - LIFE/HEALTH - 1.7%
Protective Life Corporation ................. 250,000 9,468,750
Unum Corporation ............................ 200,000 9,512,500
--------------
18,981,250
INSURANCE - MULTILINE - 3.6%
American International Group, Inc. .......... 150,000 18,093,750
Hartford Financial Services
Group, Inc. .............................. 150,000 8,521,875
Lincoln National Corporation ................ 135,000 13,348,125
--------------
39,963,750
LODGING - HOTELS - 1.6%
Carnival Corporation ........................ 370,000 17,968,125
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - DIVERSIFIED - 5.5%
AlliedSignal, Inc. .......................... 320,000 $ 15,740,000
Crane Company ............................... 200,000 4,837,500
Textron, Inc. ............................... 105,000 8,124,375
Tyco International, Ltd. .................... 240,000 17,220,000
United Technologies Corporation ............. 115,000 15,575,313
--------------
61,497,188
MEDICAL PRODUCTS & SUPPLIES - 3.5%
Baxter International, Inc. .................. 200,000 13,200,000
Becton, Dickinson & Company ................. 300,000 11,493,750
Medtronic, Inc. ............................. 200,000 14,350,000
--------------
39,043,750
NATURAL GAS - 2.1%
Coastal Corporation ......................... 340,000 11,220,000
Williams Companies, Inc. .................... 300,000 11,850,000
--------------
23,070,000
OIL - INTERNATIONAL - 2.9%
Chevron Corporation ......................... 110,000 9,728,125
Mobil Corporation ........................... 140,000 12,320,000
Royal Dutch Petroleum
Company ADR .............................. 200,000 10,400,000
--------------
32,448,125
PHARMACEUTICALS - 4.5%
Elan Corporation PLC ADR* ................... 130,000 9,067,500
Schering-Plough Corporation ................. 340,000 18,806,250
SmithKline Beecham PLC ADR .................. 200,000 14,300,000
Warner-Lambert Company ...................... 120,000 7,942,500
--------------
50,116,250
PHOTOGRAPHY/IMAGING - 1.0%
Xerox Corporation ........................... 200,000 10,675,000
PUBLISHING - 1.1%
McGraw-Hill Companies, Inc. ................. 220,000 11,990,000
PUBLISHING - NEWSPAPER - 1.9%
Gannett Company, Inc. ....................... 160,000 10,080,000
Tribune Company ............................. 165,000 10,797,187
--------------
20,877,187
RETAIL - APPAREL - 1.3%
TJX Companies, Inc. ......................... 440,000 14,960,000
RETAIL - BUILDING SUPPLIES - 0.7%
Lowe's Companies, Inc. ...................... 125,000 7,562,500
RETAIL - DEPARTMENT STORES - 0.5%
Saks, Inc.* ................................. 220,000 5,720,000
</TABLE>
See accompanying notes
- --------------------------------------------------------------------------------
28
<PAGE> 30
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - EQUITY SERIES (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - DRUG STORES - 2.0%
Rite Aid Corporation ........................ 340,000 $ 8,500,000
Walgreen Company ............................ 470,000 13,277,500
--------------
21,777,500
RETAIL - FOOD CHAINS - 2.2%
Kroger Company* ............................. 140,000 8,382,500
Safeway, Inc.* .............................. 320,000 16,420,000
--------------
24,802,500
RETAIL - GENERAL MERCHANDISE - 2.0%
Dayton Hudson Corporation ................... 160,000 10,660,000
Wal-Mart Stores, Inc. ....................... 120,000 11,062,500
--------------
21,722,500
RETAIL - SPECIALTY - 1.1%
Office Depot, Inc. .......................... 125,000 4,601,563
Payless ShoeSource, Inc.* ................... 160,000 7,440,000
--------------
12,041,563
SERVICES - ADVERTISING/MARKETING - 1.7%
Omnicom Group, Inc. ......................... 240,000 19,185,000
SERVICES - COMMERCIAL & CONSUMER - 1.1%
Viad Corporation ............................ 450,000 12,515,625
SERVICES - DATA PROCESSING - 0.8%
First Data Corporation ...................... 220,000 9,405,000
SERVICES - FACILITIES/ENVIRONMENTAL - 1.0%
Ecolab, Inc. ................................ 320,000 11,360,000
TELECOMMUNICATION - CELLULAR - 3.1%
Sprint Corporation .......................... 170,000 16,681,250
Sprint Corporation (PCS Group)* ............. 400,000 17,725,000
--------------
34,406,250
TELECOMMUNICATION - LONG DISTANCE - 2.8%
AT&T Corporation ............................ 125,000 9,976,562
MCI Worldcom, Inc. .......................... 235,000 20,812,188
--------------
30,788,750
TELECOMMUNICATIONS - 2.8%
Frontier Corporation ........................ 280,000 14,525,000
GTE Corporation ............................. 145,000 8,772,500
SBC Communications, Inc. .................... 170,000 8,011,250
--------------
31,308,750
WASTE MANAGEMENT - 0.9%
Waste Management, Inc. ...................... 220,000 9,762,500
--------------
Total common stocks - 94.3% ............................. 1,047,021,625
Cash and other assets,
less liabilities - 5.7% ............................... 63,302,540
--------------
Total net assets - 100.0% ............................... $1,110,324,165
==============
SECURITY EQUITY FUND - GLOBAL SERIES
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA - 0.3%
IRSA Inversiones y
Representaciones S.A ..................... 4,744 $ 125,123
AUSTRALIA - 1.2%
Telestra Corporation, Ltd. .................. 100,000 521,303
BELGIUM - 0.7%
Lernout & Hauspie Speech
Products N.V.* ........................... 10,000 300,000
BRAZIL - 0.6%
Brazil Realty Empreendimente e
Participacoes S.A. GDR 144A .............. 22,000 243,725
CANADA - 1.1%
Imax Corporation ADR* ....................... 24,500 477,750
FRANCE - 10.7%
AXA-UAP ..................................... 2,840 376,513
Canal Plus .................................. 5,300 1,553,490
Cap Gemini S.A .............................. 3,000 502,338
Carrefour S.A ............................... 475 366,146
Coflexip S.A ................................ 1,300 44,850
Genset Sponsored ADR* ....................... 25,000 384,375
Societe BIC S.A ............................. 9,000 473,675
Societe Television Francaise 1 .............. 2,000 375,485
Vivendi ..................................... 1,684 414,333
--------------
4,491,205
GERMANY - 11.1%
Allianz AG .................................. 960 292,270
Fresenius AG ................................ 3,300 650,189
Porsche AG .................................. 550 1,356,787
ProSieben Media AG .......................... 8,725 419,168
Rhoen-Klinikum AG ........................... 5,050 490,678
Volkswagen AG ............................... 15,000 999,170
Wella AG .................................... 662 471,699
--------------
4,679,961
GREECE - 1.0%
Hellenic Telecommunications
Organization S.A ......................... 16,800 407,392
HONG KONG - 0.7%
Dickson Concept International, Ltd. ......... 192,000 156,085
Television Broadcasts, Ltd. ................. 34,000 123,942
--------------
280,027
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
29
<PAGE> 31
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - GLOBAL SERIES (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
INDIA - 1.4%
ICICI, Ltd. GDR ............................. 39,800 $ 245,964
ICICI, Ltd. 144A GDR ........................ 14,000 86,520
Videsh Sanchar Nigam, Ltd. GDR .............. 25,000 249,500
--------------
581,984
IRELAND - 0.8%
Elan Corporation PLC ADR* ................... 5,100 355,725
ITALY - 4.3%
Banca Populare di Spoleto ................... 16,800 272,966
Credito Italiano SpA ........................ 76,800 414,566
Olivetti SpA* ............................... 170,000 532,243
Telecom Italia SpA .......................... 85,000 571,702
--------------
1,791,477
JAPAN - 3.8%
Credit Saison Company, Ltd. ................. 12,600 276,619
Eisai Company, Ltd. ......................... 22,000 459,765
Nichiei Company, Ltd. ....................... 1,300 116,465
Nippon Telegraph & Telephone
Corporation .............................. 50 489,741
Taisho Pharmaceutical
Company, Ltd. ............................ 9,000 281,179
--------------
1,623,769
MEXICO - 0.1%
Grupo Televisa S.A.* ........................ 1,000 31,375
NETHERLANDS - 1.9%
Koninklijke Ahold NV ........................ 8,000 651,647
STMicroelectronics NV* ...................... 1,400 135,975
--------------
787,622
PANAMA - 1.1%
Banco Latinoamericano de
Exportaciones S.A ........................ 18,200 473,200
POLAND - 1.0%
Agora S.A. GDR* ............................. 38,000 408,500
PORTUGAL - 0.4%
Sonae Investimentos - Sociedade
Gestora de Participacoes ................. 4,700 183,074
SINGAPORE - 1.3%
Dairy Farm International
Holdings, Inc., Ltd. ..................... 310,000 359,600
Singapore Press Holdings, Ltd. .............. 18,900 208,846
--------------
568,446
SWEDEN - 0.9%
Autoliv, Inc. ............................... 10,200 388,252
SECURITY EQUITY FUND - GLOBAL SERIES (CONTINUED)
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND - 4.5%
Adecco S.A .................................. 520 $ 263,847
Roche Holding AB ............................ 100 1,219,512
UBS AG ...................................... 1,300 408,419
--------------
1,891,778
UNITED KINGDOM - 13.4%
Allied Zurich PLC* .......................... 25,000 337,187
British Petroleum Company PLC ADR ........... 1,700 171,594
Cable & Wireless
Communications PLC* ...................... 13,400 151,962
Cadbury Schweppes PLC ....................... 32,600 475,741
Carlton Communications PLC .................. 37,600 369,345
Dixons Group PLC ............................ 25,200 530,472
Glaxo Wellcome PLC .......................... 4,200 281,137
Granada Group PLC ........................... 16,800 343,885
Hanson PLC* ................................. 55,500 498,589
National Westmininster Bank PLC ............. 3,500 81,361
Provident Financial PLC ..................... 25,000 375,728
Rentokil Initial PLC ........................ 86,000 532,759
Rolls-Royce PLC ............................. 70,400 300,880
Royal Bank of Scotland Group PLC ............ 11,400 248,625
Telewest Communications PLC* ................ 74,600 325,152
WPP Group PLC ............................... 70,000 605,120
--------------
5,629,537
UNITED STATES - 29.8%
Advanced Micro Devices, Inc.* ............... 16,800 260,400
American Express Company .................... 3,300 387,750
American International Group, Inc. .......... 1,600 193,000
Amgen, Inc.* ................................ 6,000 449,250
Associates First Capital Corporation ........ 4,600 207,000
AT&T Corporation ............................ 6,700 534,744
Cadence Design Systems, Inc.* ............... 10,100 260,075
Chubb Corporation ........................... 4,200 245,963
Circuit City Stores-Circuit City Group ...... 7,700 590,012
Cisco Systems, Inc.* ........................ 4,700 514,944
Fannie Mae .................................. 6,700 463,975
General Instrument Corporation* ............. 16,800 509,250
Genzyme Corporation* ........................ 8,400 423,675
Gilead Sciences, Inc.* ...................... 7,800 354,900
Hasbro, Inc. ................................ 17,700 512,194
International Business Machines
Corporation .............................. 2,900 514,025
International Flavors &
Fragrances, Inc. ......................... 7,100 266,694
International Game Technology ............... 11,900 173,294
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
30
<PAGE> 32
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - GLOBAL SERIES (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Lucent Technologies, Inc. ................... 900 $ 96,975
McDermott International, Inc. ............... 8,400 212,625
MCI WorldCom, Inc.* ......................... 11,200 991,900
Millennium Pharmaceuticals, Inc.* ........... 4,300 134,375
Morgan Stanley Dean Witter
& Company ................................ 600 59,962
National Semiconductor
Corporation* ............................. 32,900 306,381
Pfizer, Inc. ................................ 2,500 346,875
QUALCOMM, Inc.* ............................. 13,700 1,703,937
Quintiles Transnational
Corporation* ............................. 4,000 151,000
Scientific-Atlanta, Inc. .................... 15,700 427,825
Service Corporation International ........... 6,600 94,050
Sun Microsystems, Inc.* ..................... 8,400 1,049,475
Transocean Offshore, Inc. ................... 4,200 121,013
--------------
12,557,538
--------------
Total common stocks - 92.1% .............................. 38,798,763
Cash and other assets,
less liabilities ....................................... 3,323,096
--------------
Total net assets - 100% ................................ $42,121,859
==============
<CAPTION>
INVESTMENT CONCENTRATION
- ------------------------
At March 31, 1999, Global Series' investment concentration, by industry, was as
follows:
<S> <C>
Advertising .......................................................... 1.4%
Aerospace/Defense .................................................... 0.7%
Auto Parts & Supplies ................................................ 0.9%
Automobiles .......................................................... 5.6%
Banks & Credit ....................................................... 4.5%
Broadcast Media ...................................................... 6.8%
Building & Construction .............................................. 1.2%
Communications ....................................................... 5.5%
Computer Software .................................................... 0.6%
Computer Systems ..................................................... 6.1%
Cosmetics ............................................................ 1.1%
Electronics .......................................................... 2.9%
Engineering .......................................................... 0.5%
Entertainment ........................................................ 2.8%
Financial Services ................................................... 5.7%
Food Wholesalers ..................................................... 1.1%
Health Care .......................................................... 4.4%
Household Products ................................................... 0.6%
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT CONCENTRATION (CONTINUED)
Industrial Services ............................................. 1.0%
Insurance ....................................................... 3.4%
Medical ......................................................... 2.1%
Office Equipment ................................................ 2.4%
Oil ............................................................. 0.8%
Pharmaceuticals ................................................. 7.7%
Publishing ...................................................... 1.0%
Real Estate Development ......................................... 0.9%
Retail .......................................................... 4.8%
Semiconductors .................................................. 1.1%
Services ........................................................ 2.9%
Telecommunications .............................................. 11.6%
Cash, short-term instruments
and other assets, less liabilities ........................... 7.9%
----------
100.0%
==========
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES
<CAPTION>
CORPORATE BONDS
- ---------------
BANKING - 0.7%
Bank of New York Company, Inc.,
6.50% - 2003 ............................. $ 25,000 $ 25,531
Washington Mutual Capital I,
8.375% - 20271 ........................... $ 25,000 27,250
--------------
52,781
BROKERAGE - 0.7%
Merrill Lynch & Company, Inc.,
8.00% - 2007 ............................. $ 25,000 27,719
SI Financing Trust I, 9.50% - 2026(1) ....... 910 24,115
--------------
51,834
CAPITAL GOODS - 0.3%
Lafarge Corporation,
6.375% - 2005 ............................ $ 25,000 24,969
CONSUMER CYCLICAL - 1.0%
Lowe's Companies, Inc.,
6.70% - 2007 ............................. $ 25,000 25,219
MGM Grand, Inc., 6.95% - 2005 ............... $ 10,000 9,425
Mirage Resorts, Inc.,
6.625% - 2005 ............................ $ 10,000 9,700
News American Holdings,
8.625% - 2003 ............................ $ 25,000 27,094
--------------
71,438
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
31
<PAGE> 33
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
CORPORATE BONDS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NONCYCLICAL - 0.8%
Archer-Daniels-Midland Company,
8.875% - 2011 ............................ $ 25,000 $ 30,344
Cargill, Inc., 6.15% - 2008 ................. $ 25,000 25,062
--------------
55,406
INSURANCE - 0.4%
Hartford Life, Inc., 7.10% - 2007 ........... $ 25,000 26,187
NATURAL GAS - 0.3%
MCN Investment Corporation,
6.32% - 2003 ............................. $ 25,000 25,187
TECHNOLOGY - 0.4%
Dell Computer Corporation,
6.55% - 2008 ............................. $ 25,000 25,281
TELECOMMUNICATIONS - 0.7%
SBC Communications, Inc.,
6.625% - 2007 ............................ $ 25,000 25,375
MCI Worldcom, Inc.,
6.4% - 2005 .............................. $ 25,000 25,969
--------------
51,344
YANKEE - CORPORATES - 0.4%
Abbey National PLC, 6.69% - 2005 ............ $ 25,000 25,594
--------------
Total corporate bonds - 5.7% .............................. 410,021
COMMON STOCKS
- -------------
BIOTECHNOLOGY - 3.3%
Amgen, Inc.* ................................ 800 59,900
Biogen, Inc.* ............................... 400 45,725
Centocor, Inc.* ............................. 700 25,900
Chiron Corporation* ......................... 1,900 41,681
Genzyme Corporation* ........................ 1,300 65,569
--------------
238,775
COMMUNICATION EQUIPMENT - 4.6%
ADC Telecommunications, Inc.* ............... 800 38,150
Andrew Corporation* ......................... 700 8,619
Lucent Technologies, Inc. ................... 400 43,100
Motorola, Inc. .............................. 600 43,950
Northern Telecom, Ltd. ...................... 1,000 62,125
QUALCOMM, Inc.* ............................. 600 74,625
Tellabs, Inc.* .............................. 600 58,650
--------------
329,219
COMPUTERS - NETWORKING - 2.9%
Ascend Communications, Inc.* ................ 900 75,319
Cabletron Systems, Inc.* .................... 3,500 28,656
Cisco Systems, Inc.* ........................ 725 79,433
3Com Corporation* ........................... 1,200 27,975
--------------
211,383
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPUTERS - PERIPHERALS - 3.7%
EMC Corporation* ............................ 700 $ 89,425
Lexmark International Group, Inc.* .......... 700 78,225
Quantum Corporation* ........................ 1,800 32,400
Seagate Technology, Inc.* ................... 1,200 35,475
Storage Technology Corporation* ............. 1,200 33,450
--------------
268,975
DISTRIBUTION - FOOD & HEALTH - 1.5%
Bergen Brunswig Corporation (Cl.A) .......... 800 16,000
Cardinal Health, Inc. ....................... 400 26,400
McKesson HBOC, Inc. ......................... 300 19,800
SuperValu, Inc. ............................. 900 18,563
Sysco Corporation ........................... 900 23,681
--------------
104,444
ENGINEERING & CONSTRUCTION - 1.9%
Fluor Corporation ........................... 800 21,600
Granite Construction, Inc. .................. 1,000 23,375
Jacobs Engineering Group, Inc.* ............. 1,000 39,438
McDermott International, Inc. ............... 1,000 25,312
Morrison Knudsen Corporation* ............... 3,000 29,813
--------------
139,538
EQUIPMENT - SEMICONDUCTORS - 3.9%
Applied Materials, Inc.* .................... 1,300 80,194
KLA-Tencor Corporation* ..................... 1,300 63,131
Novellus Systems, Inc.* ..................... 1,100 60,638
Teradyne, Inc.* ............................. 1,400 76,387
--------------
280,350
FOOTWEAR - 3.9%
Nike, Inc. (CI.B) ........................... 1,800 103,838
Nine West Group, Inc.* ...................... 3,000 74,062
Reebok International, Ltd.* ................. 3,600 57,150
Wolverine World Wide, Inc. .................. 4,400 41,800
--------------
276,850
GAMING & LOTTERY - 3.2%
Circus Circus Enterprises, Inc.* ............ 3,500 61,469
Harrah's Entertainment, Inc.* ............... 3,400 64,812
International Game Technology, Inc. ......... 3,000 43,688
Mirage Resorts, Inc.* ....................... 2,950 62,687
--------------
232,656
GOLD COMPANIES - 1.7%
Barrick Gold Corporation .................... 1,700 29,006
Battle Mountain Gold Company ................ 5,700 15,675
Homestake Mining Company .................... 3,100 26,738
Newmont Mining Corporation .................. 1,100 19,250
Placer Dome, Inc. ........................... 2,800 31,325
--------------
121,994
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
32
<PAGE> 34
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CONTINUED)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MEDICAL PRODUCTS & SUPPLIES - 2.6%
Baxter International, Inc. .................. 600 $ 39,600
Becton, Dickinson & Company ................. 800 30,650
Boston Scientific Corporation* .............. 800 32,450
Guidant Corporation ......................... 800 48,400
Medtronic, Inc. ............................. 500 35,875
--------------
186,975
PHARMACEUTICALS - 3.2%
ICN Pharmaceuticals, Inc. ................... 2,000 50,375
Jones Pharma, Inc. .......................... 1,500 52,125
Medimmune, Inc.* ............................ 800 47,350
Mylan Laboratories, Inc. .................... 1,600 43,900
Watson Pharmaceuticals, Inc.* ............... 900 39,712
--------------
233,462
RESTAURANTS - 2.7%
CKE Restaurants, Inc. ....................... 517 10,211
CBRL Group, Inc. ............................ 600 10,800
McDonald's Corporation ...................... 800 36,250
Starbuck's Corporation* ..................... 1,400 39,288
Tricon Global Restaurants, Inc.* ............ 800 56,200
Wendy's International, Inc. ................. 1,400 39,812
--------------
192,561
RETAIL - BUILDING SUPPLIES - 2.9%
Fastenal Company ............................ 1,000 35,062
Home Depot, Inc. ............................ 800 49,800
Hughes Supply, Inc. ......................... 1,200 27,300
Lowe's Companies, Inc. ...................... 1,000 60,500
Sherwin-Williams Company .................... 1,200 33,750
--------------
206,412
RETAIL - SPECIALTY - 3.4%
AutoZone, Inc.* ............................. 1,200 36,450
Bed Bath & Beyond, Inc.* .................... 1,200 43,800
Office Depot, Inc.* ......................... 1,000 36,813
OfficeMax, Inc.* ............................ 2,100 18,113
Staples, Inc.* .............................. 2,325 76,434
Toys "R" Us, Inc.* .......................... 1,700 31,981
--------------
243,591
SERVICES - ADVERTISING/MARKETING - 2.5%
ACNielsen Corporation* ...................... 1,200 32,550
Acxiom Corporation* ......................... 1,200 31,800
Interpublic Group of Companies, Inc. ........ 500 38,937
Omnicom Group, Inc. ......................... 600 47,962
True North Communications, Inc. ............. 1,100 30,938
--------------
182,187
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
TOBACCO - 1.6%
Philip Morris Companies, Inc. ............... 1,000 $ 35,188
RJR Nabisco Holdings Corporation* ........... 1,500 37,500
UST, Inc. ................................... 1,500 39,187
--------------
111,875
TRUCKING - 2.4%
J.B. Hunt Transport Services, Inc. .......... 1,900 39,900
Rollins Truck Leasing Corporation ........... 2,750 25,953
Ryder System, Inc. .......................... 1,350 37,294
USFreightways Corporation ................... 1,300 42,738
Werner Enterprises, Inc. .................... 1,775 27,956
--------------
173,841
--------------
Total common stocks - 51.9% ............................... 3,735,088
U.S. GOVERNMENT AGENCIES
- ------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.7%
7.00% - 2020 ............................. $ 92,095 92,563
7.00% - 2021 ............................. $ 30,025 30,382
--------------
122,945
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.6%
6.50% - 2018 ............................. $ 26,908 26,963
6.95% - 2020 ............................. $ 129,635 131,314
7.50% - 2020 ............................. $ 26,073 26,718
--------------
184,995
U.S. TREASURY NOTES - 2.2%
6.50% - 2006 ............................. $ 150,000 159,818
U.S. TREASURY BONDS - 1.4%
6.00% - 2026 ............................. $ 100,000 101,675
--------------
Total U.S. government
agencies - 7.9% ......................................... 569,433
REAL ESTATE INVESTMENT TRUSTS
- -----------------------------
American Health Properties, Inc. ............ 700 12,731
Archstone Communities Trust ................. 800 16,100
Avalon Bay Communities, Inc. ................ 460 14,547
CBL & Associates Properties, Inc. ........... 700 16,275
Duke Realty Investments, Inc. ............... 900 19,350
Equity Residential Properties Trust ......... 824 33,990
Federal Realty Investment Trust ............. 650 13,772
General Growth Properties, Inc. ............. 550 17,841
Glimcher Realty Trust ....................... 850 12,219
Health Care Property Investors, Inc. ........ 500 14,375
Kimco Realty Corporation .................... 600 22,125
Merry Land Properties, Inc. ................. 40 235
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
33
<PAGE> 35
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CONTINUED)
<TABLE>
<CAPTION>
REAL ESTATE NUMBER MARKET
INVESTMENT TRUSTS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
New Plan Excel Realty Trust ................. 800 $ 15,350
Post Properties, Inc. ....................... 450 16,200
Public Storage, Inc. ........................ 600 15,000
Simon Property Group, Inc ................... 600 16,462
Spieker Properties, Inc. .................... 500 17,625
United Dominion Realty Trust, Inc. .......... 1,200 12,300
Washington Real Estate Investment
Trust .................................... 1,000 16,313
Weingarten Realty Investors ................. 400 15,850
--------------
Total real estate investment
trusts - 4.4% ........................................... 318,660
FOREIGN STOCKS
- --------------
BELGIUM - 4.3%
Cementbedrijven Cimenteries ................. 200 17,954
Delhaize - Le Lion SA ....................... 300 27,789
Electrabel SA ............................... 150 53,764
Fortis AG (Cl.B) ............................ 1,800 66,460
Gevaert NV* ................................. 200 13,851
Petrofina SA ................................ 150 82,104
Solvay SA ................................... 800 49,057
--------------
310,979
DENMARK - 3.2%
A/S Dampskibsselskabet Svendborg ............ 5 47,934
A/S Forsikringsselskabet Codan .............. 45 5,098
Akieselskabet Potagua ....................... 140 2,745
Bang & Olufsen Holding A/S .................. 82 5,717
Carlsberg A/S ............................... 197 7,984
Cheminova Holding A/S ....................... 214 3,171
D/S Norden A/S .............................. 35 1,551
Danisco A/S ................................. 244 11,164
Danske Traelast ............................. 54 3,687
Den Danske Bank ............................. 245 25,737
Finansierings Instituttet for Industri
og Handvaerk A/S ......................... 189 3,843
Finansieringsselskabet Gefion A/S ........... 240 4,881
FLS Industries A/S .......................... 212 4,157
ISS International Service
System A/S* .............................. 148 9,619
J. Lauritzen Holdings A/S* .................. 89 6,722
Jyske Bank A/S .............................. 61 4,900
Kapital Holding ............................. 133 5,506
Korn-OG Foderstof
Kompagniet A/S ........................... 153 3,000
Novo Nordisk A/S ............................ 263 29,415
Radiometer A/S .............................. 94 4,369
Ratin A/S ................................... 88 15,850
<CAPTION>
NUMBER MARKET
FOREIGN STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
DENMARK (CONTINUED)
Sophus Berendsen A/S ........................ 88 $ 2,505
Sydbank A/S ................................. 108 3,530
Tele Danmark A/S ............................ 94 9,312
Topdanmark A/S .............................. 30 5,537
Tryg-Baltica Forsikring A/S ................. 128 3,626
--------------
231,560
GERMANY - 10.0%
Allianz AG .................................. 360 109,601
BASF AG ..................................... 1,081 39,563
Bayer AG .................................... 735 27,535
Bayerische Motoren Werke
(BMW) AG ................................. 100 65,532
Bayerische Motoren Werke
(Bonus Issue)* ........................... 20 12,761
Continental AG .............................. 202 4,994
DaimlerChrysler AG* ......................... 452 39,331
Degussa-Huels AG ............................ 140 5,290
Deutsche Bank AG ............................ 692 35,599
Deutsche Telekom AG ......................... 2,900 118,189
Dresdner Bank AG ............................ 611 24,472
Friedrich Grohe AG-Vorzugsak ................ 7 1,715
Heidelberger Zement AG ...................... 86 5,246
Hochtief AG ................................ 180 5,966
Linde AG .................................... 14 7,995
Merck KGAA .................................. 187 6,460
Muenchener Rueckver* ........................ 70 13,943
Muenchener Rueckversicherungs-
Gesellschaft AG .......................... 70 14,132
Preussag AG ................................. 72 38,632
SAP AG ...................................... 122 34,969
Siemens AG .................................. 1,038 69,367
Veba AG ..................................... 634 33,334
--------------
714,626
JAPAN - 11.4%
All Nippon Airways Company, Ltd. ............ 2,000 6,637
Asahi Glass Company, Ltd. ................... 2,000 14,523
Bank of Tokyo-Mitsubishi, Ltd. .............. 3,000 41,341
Chubu Electric Power Company, Inc. .......... 400 7,093
Fuji Bank, Ltd. ............................. 1,000 5,919
Fujitsu, Ltd. ............................... 2,000 32,120
Hitachi, Ltd. ............................... 3,000 22,216
Industrial Bank of Japan, Ltd. .............. 2,000 13,510
Kansai Electric Power Company ............... 1,400 28,312
Kawasaki Heavy Industries ................... 4,000 8,714
Kawasaki Steel Corporation .................. 5,000 8,444
Kinki Nippon Railway
Company, Ltd. ............................ 2,000 10,707
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
34
<PAGE> 36
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
FOREIGN STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Kirin Brewery Company, Ltd. ................. 1,000 $ 11,720
Kyocera Corporation ......................... 100 5,387
Marubeni Corporation ........................ 3,000 5,699
Marui Company, Ltd. ......................... 1,000 17,014
Matsushita Electric Industrial
Company, Ltd. ............................ 2,000 39,010
Mitsubishi Corporation ...................... 4,000 26,176
Mitsubishi Estate Company, Ltd. ............. 1,000 10,175
Mitsubishi Heavy Industrial, Ltd. ........... 4,000 18,070
Mitsubishi Motors Corporation ............... 2,000 7,464
Mitsubishi Trust & Banking
Corporation .............................. 1,000 10,369
Mitsui Fudosan Company, Ltd. ................ 1,000 9,009
NEC Corporation ............................. 2,000 24,065
Nippon Steel Corporation .................... 6,000 12,311
Nissan Motor Company, Ltd. .................. 2,000 7,768
Nomura Securities Company, Ltd. ............. 2,000 20,941
NSK Ltd. .................................... 4,000 18,576
Sekisui House, Ltd. ......................... 4,000 42,557
Sharp Corporation ........................... 2,000 21,110
Shin-Etsu Chemical Company .................. 1,000 26,260
Sony Corporation ............................ 100 9,246
Sumitomo Bank, Ltd. ......................... 4,000 54,142
Sumitomo Chemical Company ................... 6,000 24,166
Tokio Marine & Fire Insurance
Company .................................. 2,000 22,815
Tokyo Electric Power Company ................ 2,700 58,136
Tokyu Corporation ........................... 4,000 10,437
Toshiba Corporation ......................... 3,000 20,493
Toyota Motor Corporation .................... 3,000 86,887
--------------
819,539
--------------
Total foreign stocks - 28.9% ............................ 2,076,704
TEMPORARY CASH INVESTMENTS
- --------------------------
MONEY MARKET FUND - 1.0%
Chase Master Note Program ................ $ 68,700 68,700
--------------
Total investments - 99.8% ................ 7,178,606
Cash and other assets,
less liabilities - 0.2% ............ 14,942
--------------
Total net assets - 100% .................. $ 7,193,548
==============
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AIRLINES - 0.6%
AMR Corporation* ............................ 1,800 $ 105,413
AUTO PARTS & EQUIPMENT - 0.2%
Dana Corporation ............................ 800 30,400
BANKS - MAJOR REGIONAL - 5.5%
Bank of New York Company, Inc. .............. 4,900 176,094
Bank One Corporation ........................ 4,670 257,142
BankAmerica Corporation ..................... 2,500 176,562
Northern Trust Corporation .................. 2,200 195,387
Wachovia Corporation ........................ 1,300 105,544
Wells Fargo Company ......................... 2,700 94,669
--------------
1,005,398
BANKS - MONEY CENTER - 0.9%
Chase Manhattan Corporation ................. 2,000 162,625
BEVERAGES - SOFT DRINK - 2.3%
Coca-Cola Company ........................... 6,800 417,350
BROADCAST MEDIA - 2.5%
Chancellor Media Corporation* ............... 1,800 84,825
Comcast Corporation (Cl.A) .................. 2,500 157,344
Viacom, Inc. (Cl.B)* ........................ 2,600 218,237
--------------
460,406
CHEMICALS - BASIC - 0.4%
Air Products & Chemicals, Inc. .............. 2,200 75,350
CHEMICALS - SPECIALTY - 0.7%
H.B. Fuller Company ......................... 1,700 100,194
Sigma-Aldrich ............................... 1,100 32,175
--------------
132,369
COMMUNICATIONS - EQUIPMENT - 1.8%
ADC Telecommunications, Inc.* ............... 1,900 90,606
Comverse Technology, Inc.* .................. 1,500 127,500
Tellabs, Inc.* .............................. 1,200 117,300
--------------
335,406
COMPUTER HARDWARE - 3.9%
Compaq Computer Corporation ................. 4,200 133,088
Hewlett-Packard Company ..................... 2,000 135,625
International Business Machines
Corporation .............................. 1,700 301,325
Sun Microsystems, Inc.* ..................... 1,100 137,431
--------------
707,469
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
35
<PAGE> 37
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPUTERS - NETWORKING - 3.2%
Ascend Communications, Inc.* ................ 1,400 $ 117,162
Cisco Systems, Inc.* ........................ 4,325 473,858
--------------
591,020
COMPUTER SOFTWARE/SERVICES - 6.8%
Adobe Systems, Inc. ......................... 1,700 96,475
Affiliated Computer
Services, Inc.* .......................... 3,100 141,825
American Management Systems, Inc.* .......... 4,600 156,975
Microsoft Corporation* ...................... 9,400 842,475
--------------
1,237,750
CONSUMER FINANCE - 0.7%
Household International, Inc. ............... 2,800 127,750
DISTRIBUTION - FOOD & HEALTH - 0.3%
Cardinal Health, Inc ........................ 975 64,350
ELECTRICAL EQUIPMENT - 1.2%
Cooper Industries, Inc. ..................... 1,200 51,150
Emerson Electric Company .................... 1,800 95,288
Hubbell, Inc. (Cl.B) ........................ 1,100 44,000
Thomas & Betts Corporation .................. 800 30,050
--------------
220,488
ELECTRONICS - SEMICONDUCTORS - 4.3%
Analog Devices, Inc.* ....................... 3,200 95,200
Intel Corporation ........................... 4,700 559,888
Texas Instruments, Inc. ..................... 600 59,550
Xilinx, Inc.* ............................... 1,800 73,012
--------------
787,650
ENTERTAINMENT - 2.2%
Time Warner, Inc. ........................... 3,400 241,613
Walt Disney Company ......................... 5,000 155,625
--------------
397,238
EQUIPMENT - SEMICONDUCTORS - 0.6%
Applied Materials, Inc.* .................... 1,700 104,869
FINANCIAL - DIVERSE - 4.7%
American Express Company .................... 1,600 188,000
American General Corporation ................ 2,500 176,250
Fannie Mae .................................. 3,100 214,675
Finova Group, Inc. .......................... 2,800 145,250
Freddie Mac ................................. 2,200 125,675
--------------
849,850
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
FOODS - 1.4%
Bestfoods ................................... 1,200 $ 56,400
General Mills, Inc. ......................... 1,500 113,344
Interstate Bakeries Corporation ............. 4,000 86,250
--------------
255,994
HARDWARE & TOOLS - 0.5%
Black & Decker Corporation .................. 1,800 99,787
HEALTH CARE - DIVERSE - 2.2%
Johnson & Johnson ........................... 4,200 393,487
HEALTH CARE - SPECIALIZED SERVICES - 0.5%
ALZA Corporation* ........................... 2,200 84,150
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.7%
Leggett & Platt, Inc. ....................... 6,800 136,000
HOUSEHOLD PRODUCTS - 4.0%
Clorox Company .............................. 1,400 164,063
Colgate-Palmolive Company ................... 800 73,600
Kimberly-Clark Corporation .................. 2,000 95,875
Procter & Gamble Company .................... 4,000 391,750
--------------
725,288
HOSPITAL MANAGEMENT - 0.4%
Health Management Associates, Inc.* 5,800 70,687
INSURANCE - LIFE/HEALTH - 0.7%
UNUM Corporation ............................ 2,800 133,175
INSURANCE - MULTI-LINE - 2.3%
American International Group, Inc. .......... 3,410 411,331
INSURANCE - PROPERTY & CASUALTY - 0.6%
Chubb Corporation ........................... 2,000 117,125
LEISURE TIME PRODUCTS - 0.4%
Mattel, Inc. ................................ 2,700 67,162
MACHINERY - DIVERSE - 0.2%
Milacrom, Inc. .............................. 2,400 37,800
MANUFACTURING - DIVERSIFIED - 0.6%
Illinois Tool Works, Inc. ................... 1,700 105,187
MANUFACTURING - SPECIALIZED - 0.3%
Avery Dennison Corporation .................. 900 51,750
MEDICAL PRODUCTS & SUPPLIES - 1.8%
Boston Scientific Corporation* .............. 2,600 105,463
Guidant Corporation ......................... 1,600 96,800
Medtronic, Inc. ............................. 1,700 121,975
--------------
324,238
OFFICE EQUIPMENT & SUPPLIES - 0.3%
Pitney Bowes, Inc. .......................... 800 51,000
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
36
<PAGE> 38
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
OIL - DOMESTIC - 0.4%
Atlantic Richfield Company .................. 1,000 $ 73,000
OIL - INTERNATIONAL - 1.1%
BP Amoco PLC ADR ............................ 2,014 203,288
OIL & GAS - DRILLING & EQUIPMENT - 0.4%
BJ Services Company* ........................ 3,200 75,000
OIL & GAS - EXPLORATION PRODUCTION - 1.0%
Anadarko Petroleum Corporation .............. 2,800 105,700
Apache Corporation .......................... 2,600 67,763
--------------
173,463
PAPER & FOREST PRODUCTS - 0.5%
Mead Corporation ............................ 2,000 61,500
Westvaco Corporation ........................ 1,000 21,000
--------------
82,500
PERSONAL CARE - 1.1%
Gillette Company ............................ 3,500 208,031
PHARMACEUTICALS - 4.3%
Merck & Company, Inc. ....................... 6,600 529,238
Schering-Plough Corporation ................. 4,600 254,437
--------------
783,675
PHOTOGRAPHY/IMAGING - 0.7%
Xerox Corporation ........................... 2,400 128,100
PUBLISHING - 0.5%
McGraw-Hill Companies, Inc. ................. 1,800 98,100
PUBLISHING - NEWSPAPER - 0.3%
New York Times Company - (Cl.A) ............. 2,200 62,700
RAILROADS - 0.2%
Norfolk Southern Corporation ................ 1,700 44,838
RESTAURANTS - 1.0%
McDonald's Corporation ...................... 4,200 190,312
RETAIL - APPAREL - 1.4%
TJX Companies, Inc. ......................... 5,200 176,800
Talbots, Inc. ............................... 3,000 73,125
--------------
249,925
RETAIL - BUILDING SUPPLIES - 1.1%
Lowe's Companies, Inc. ...................... 3,300 199,650
RETAIL - DEPARTMENT STORES - 0.6%
Kohl's Corporation* ......................... 1,600 113,400
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - DRUG STORES - 0.7%
CVS Corporation ............................. 2,500 $ 118,750
RETAIL - FOOD CHAINS - 1.0%
Kroger Company* ............................. 3,000 179,625
RETAIL - GENERAL MERCHANDISE -3.6%
Costco Companies, Inc.* ..................... 1,000 91,563
Dayton Hudson Corporation ................... 4,800 319,800
Kmart Corporation* .......................... 10,000 168,125
Sears, Roebuck & Company .................... 1,500 67,781
--------------
647,269
SAVINGS & LOAN - 0.4%
Washington Mutual, Inc. ..................... 1,680 68,670
SERVICES - ADVERTISING/MARKETING - 1.5%
Omnicom Group, Inc. ......................... 3,300 263,794
SERVICES - COMPUTER SYSTEMS - 0.8%
Sungard Data Systems, Inc.* ................. 3,500 140,000
TELECOMMUNICATIONS - 4.3%
Ameritech Corporation ....................... 3,000 173,625
Bell Atlantic Corporation ................... 4,200 217,088
BellSouth Corporation ....................... 3,400 136,212
SBC Communications, Inc. .................... 5,400 254,475
--------------
781,400
TELECOMMUNICATIONS - CELLULAR - 1.2%
Sprint Corporation .......................... 1,100 107,937
Sprint Corporation (PCS Group)* ............. 2,450 108,566
--------------
216,503
TELECOMMUNICATIONS - LONG DISTANCE - 5.1%
AT&T Corporation ............................ 6,163 491,884
MCI WorldCom, Inc.* ......................... 4,000 354,250
Scientific-Atlanta, Inc. .................... 3,100 84,475
--------------
930,609
TRUCKING - 0.3%
FDX Corporation* ............................ 500 46,406
TRUCKS & PARTS - 0.2%
Federal-Mogul Corporation ................... 700 30,100
--------------
Total common stocks - 93.4% .............................. 16,986,420
Cash and other assets,
less liabilities - 6.6% ................................ 1,203,253
--------------
Total net assets - 100.0% ................................ $18,189,673
==============
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
37
<PAGE> 39
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - VALUE SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AGRICULTURAL PRODUCTS - 1.8%
Archer-Daniels-Midland Company .............. 30,000 $ 440,625
AUTO PARTS & EQUIPMENT - 1.7%
Motorcar Parts & Accessories, Inc.* ......... 37,000 413,937
BANKS - MAJOR REGIONAL - 2.3%
BankBoston Corporation ...................... 5,300 229,556
Mercantile Bancorporation, Inc. ............. 3,700 175,750
Northern Trust Corporation .................. 1,600 142,100
--------------
547,406
BIOTECHNOLOGY - 0.9%
Ligand Pharmaceuticals, Inc. (Cl.B)* ........ 26,000 212,875
CHEMICALS - SPECIALTY - 0.8%
Material Sciences Corporation* .............. 30,000 191,250
COMMUNICATION EQUIPMENT - 5.8%
Comverse Technology, Inc.* .................. 15,800 1,343,000
Transcrypt International, Inc.* ............. 25,000 59,375
--------------
1,402,375
COMPUTER SOFTWARE/SERVICES - 9.0%
American Management Systems, Inc.* .......... 12,000 409,500
Computer Sciences Corporation* .............. 8,800 485,650
JDA Software Group, Inc.* ................... 70,000 520,625
Rational Software Corporation* .............. 28,000 750,750
--------------
2,166,525
ELECTRICAL EQUIPMENT - 3.7%
Benchmark Electronics, Inc.* ................ 17,000 510,000
Maxwell Technologies, Inc.* ................. 16,000 374,000
--------------
884,000
ELECTRONICS - INSTRUMENTATION - 1.0%
E G & G, Inc. ............................... 8,700 229,463
ELECTRONICS - SEMICONDUCTORS - 0.7%
S3, Inc.* ................................... 23,700 177,750
FOODS - 3.9%
Chiquita Brands International, Inc. ......... 37,000 376,937
Hormel Foods Corporation .................... 16,000 570,000
--------------
946,937
GAMING & LOTTERY - 2.2%
Circus Circus Enterprises, Inc.* ............ 30,000 526,875
HEALTH CARE - SPECIALIZED SERVICES - 3.2%
CryoLife, Inc.* ............................. 35,700 392,700
Morrison Health Care, Inc. .................. 21,000 375,375
--------------
768,075
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
HOSPITAL MANAGEMENT - 1.1%
Columbia/HCA Healthcare
Corporation .............................. 14,100 $ 267,019
INSURANCE - LIFE/HEALTH - 4.7%
AFLAC, Inc. ................................. 12,000 653,250
UNUM Corporation ............................ 10,000 475,625
--------------
1,128,875
INSURANCE - PROPERTY & CASUALTY - 1.2%
Horace Mann Educators Corporation ........... 13,000 299,000
INVESTMENT BANK / BROKERAGE - 1.1%
Legg Mason, Inc. ............................ 8,000 269,500
LEISURE TIME PRODUCTS - 3.8%
Hasbro, Inc. ................................ 19,500 564,281
Midway Games, Inc.* ......................... 42,000 364,875
--------------
929,156
MANUFACTURING - DIVERSIFIED - 1.1%
AEP Industries, Inc.* ....................... 10,200 255,000
MANUFACTURING - SPECIALIZED - 1.4%
Brady Corporation (Cl.A) .................... 16,000 335,000
MEDICAL PRODUCTS & SUPPLIES - 1.6%
Sunrise Medical, Inc.* ...................... 62,900 393,125
NATURAL GAS - 2.4%
Equitable Resources, Inc. ................... 22,000 573,375
OIL - INTERNATIONAL - 1.8%
Tesoro Petroleum Corporation* ............... 40,000 440,000
OIL & GAS - DRILLING & EQUIPMENT - 3.3%
B.J. Services Company* ...................... 24,000 562,500
ENSCO International, Inc. ................... 17,400 231,638
--------------
794,138
OIL & GAS - EXPLORATION & PRODUCTION - 11.8%
Anadarko Petroleum Corporation .............. 17,000 641,750
Apache Corporation .......................... 18,000 469,125
Burlington Resources, Inc. .................. 14,000 559,125
Chieftain International, Inc.* .............. 39,000 477,750
Evergreen Resources, Inc.* .................. 15,000 300,000
Ocean Energy, Inc.* ......................... 60,000 408,750
--------------
2,856,500
PUBLISHING - NEWSPAPER - 1.3%
E.W. Scripps Company (Cl.A) ................. 7,000 309,750
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
38
<PAGE> 40
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - VALUE SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS - 5.3%
Dura Pharmaceuticals, Inc.* ................. 19,000 $ 268,375
Mylan Laboratories, Inc. .................... 12,000 329,250
Noven Pharmaceuticals, Inc.* ................ 56,000 259,000
Teva Pharmaceutical Industries,
Ltd. ADR ................................. 8,900 422,194
--------------
1,278,819
RAILROADS - 3.8%
RailAmerica, Inc.* .......................... 105,000 918,750
RESTAURANTS - 4.4%
Cheesecake Factory* ......................... 17,900 425,125
Sonic Corporation* .......................... 24,000 646,500
--------------
1,071,625
RETAIL - APPAREL - 1.1%
Talbots, Inc. ............................... 11,000 268,125
RETAIL - SPECIALTY - 0.7%
Keystone Automotive Industries, Inc.* ....... 10,500 170,625
SERVICES - ADVERTISING MARKETING - 1.5%
True North Communications, Inc. ............. 13,100 368,438
SERVICES - COMMERCIAL & CONSUMER - 5.1%
Angelica Corporation ........................ 39,000 546,000
Cerner Corporation* ......................... 17,000 273,062
FTI Consulting, Inc.* ....................... 20,000 57,500
Tier Technologies, Inc.* .................... 40,000 347,500
--------------
1,224,062
SERVICES - COMPUTER SYSTEMS - 1.2%
Comdisco, Inc. .............................. 16,000 286,000
TELECOMMUNICATION - LONG DISTANCE - 2.4%
AT&T Corporation ............................ 7,400 590,613
TEXTILES - APPAREL - 0.8%
Kellwood Company ............................ 8,600 189,737
--------------
Total common stocks - 99.9% ............................... 24,125,325
Cash and other assets,
less liabilities - 0.1% ................................. 25,452
--------------
Total net assets - 100.0% ................................. $24,150,777
==============
SECURITY EQUITY FUND - SMALL COMPANY SERIES
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE DEFENSE - 1.0%
Aviation Sales Company* ..................... 2,500 $ 111,250
BIOTECHNOLOGY - 4.9%
Biomatrix, Inc.* ............................ 2,800 218,400
IDEC Pharmaceuticals
Corporation* ............................. 1,100 56,513
Techne Corporation* ......................... 5,800 167,475
Transkaryotic Therapies, Inc.* .............. 3,200 101,600
--------------
543,988
COMMUNICATION EQUIPMENT - 10.3%
ANTEC Corporation* .......................... 8,800 189,200
Carrier Access Corporation* ................. 3,600 278,325
Computer Network Technology
Corporation* ............................. 4,400 70,950
GeoTel Communications
Corporation* ............................. 6,100 279,838
Harmonic Lightwaves, Inc.* .................. 4,200 116,025
Osicom Technologies, Inc.* .................. 1,900 45,600
Powerwave Technologies, Inc.* ............... 6,000 170,250
--------------
1,150,188
COMPUTER SOFTWARE/SERVICES - 24.2%
Advantage Learning Systems, Inc.* ........... 2,700 83,869
Aware, Inc.* ................................ 4,400 206,800
BroadVision, Inc.* .......................... 3,900 233,025
Clarify, Inc.* .............................. 2,100 56,044
Concur Technologies, Inc.* .................. 3,300 148,913
Critical Path, Inc.* ........................ 1,100 84,700
Entrust Technologies, Inc.* ................. 7,800 263,250
InfoSpace.com, Inc.* ........................ 2,000 177,125
International Integration, Inc.* ............ 6,500 208,000
Macromedia, Inc.* ........................... 3,100 140,469
Mentor Graphics Corporation* ................ 4,200 56,700
Mercury Interactive Corporation* ............ 4,000 142,500
New Dimension Software, Ltd.* ............... 2,100 108,938
New Era of Networks, Inc.* .................. 2,400 162,600
Peregrine Systems, Inc.* .................... 3,700 124,413
Sykes Enterprises, Inc.* .................... 4,500 145,406
TSI International Software, Ltd.* ........... 3,800 185,488
Verity, Inc.* ............................... 3,700 123,950
Ziff-Davis, Inc. - ZDNet* ................... 1,200 43,200
--------------
2,695,390
ELECTRICAL EQUIPMENT - 0.3%
Cooper Cameron Corporation* ................. 1,000 33,875
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
39
<PAGE> 41
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SMALL COMPANY SERIES
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - SEMICONDUCTORS - 1.3%
Flextronics International, Ltd.* ............ 1,700 $ 86,700
Transwitch Corporation* ..................... 1,300 58,825
--------------
145,525
ENGINEERING & CONSTRUCTION - 0.8%
Dycom Industries, Inc.* ..................... 2,000 87,000
EQUIPMENT - SEMI-CONDUCTORS - 0.9%
Galileo Technology, Ltd. .................... 3,400 99,450
FINANCIAL - DIVERSE - 0.3%
Security First Technologies
Corporation* ............................. 500 36,750
FOOTWEAR - 0.6%
Timberland Company* ......................... 1,000 63,062
HEALTH CARE - MANAGED CARE - 1.5%
Express Scripts, Inc.* ...................... 1,900 163,281
HEALTH CARE - SPECIALIZED CARE - 2.2%
Pharmaceutical Product
Development, Inc.* ....................... 7,300 245,006
MANUFACTURING - SPECIALIZED - 2.5%
Optical Coating Laboratory, Inc. ............ 5,800 278,400
MEDICAL PRODUCTS & SUPPLIES - 3.2%
Advanced Neuromodulation
System, Inc.* ............................ 7,500 51,562
Hooper Holmes, Inc. ......................... 3,500 54,687
Xomed Surgical Products, Inc.* .............. 6,500 255,125
--------------
361,374
OIL & GAS - DRILLING & EQUIPMENT - 0.8%
BJ Services Company* ........................ 2,000 46,875
Smith International, Inc.* .................. 1,000 40,000
--------------
86,875
OIL & GAS - EXPLORATION & PRODUCTION - 0.3%
Helmerich & Payne, Inc. ..................... 1,500 34,031
PHARMACEUTICALS - 4.5%
Alpharma, Inc. .............................. 5,000 196,250
Andrx Corporation* .......................... 500 45,562
QLT PhotoTherapeutics, Inc.* ................ 900 36,675
Roberts Pharmaceutical Corporation* 6,500 134,875
Sepracor, Inc.* ............................. 800 89,800
--------------
503,162
PHOTOGRAPHY - IMAGING - 0.8%
Getty Images, Inc.* ......................... 4,000 84,000
RESTAURANTS - 1.0%
Applebees International, Inc. ............... 4,700 116,619
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - APPAREL - 3.4%
American Eagle Outfitters, Inc.* ............ 1,300 $ 93,194
dELIA*s, Inc.* .............................. 2,100 66,150
Pacific Sunwear of California, Inc.* ........ 1,700 59,075
Children's Place Retail Stores, Inc.* ....... 2,500 67,344
AnnTaylor Stores Corporation* ............... 2,200 97,212
--------------
382,975
RETAIL - DEPARTMENT STORES - 1.5%
99 Cents Only Stores* ....................... 800 33,950
Ames Department Stores, Inc.* ............... 3,500 129,937
--------------
163,887
RETAIL - FOOD CHAINS - 0.5%
NPC International, Inc.* .................... 3,300 51,562
RETAIL - GENERAL MERCHANDISE - 2.9%
Fossil, Inc.* ............................... 5,500 163,969
Linens `N Things, Inc.* ..................... 3,400 154,275
--------------
318,244
RETAIL - SPECIALTY - 3.4%
Claire's Stores, Inc. ....................... 1,900 57,237
O'Reilly Automotive, Inc.* .................. 1,600 71,600
School Specialty, Inc.* ..................... 3,600 70,425
Tweeter Home Entertainment
Group, Inc.* ............................. 5,400 174,150
--------------
373,412
SAVINGS & LOANS - 0.2%
Net.B@nk, Inc.* ............................. 400 27,200
SERVICES - ADVERTISING/MARKETING - 2.0%
Catalina Marketing Corporation* ............. 600 51,525
TMP Worldwide, Inc.* ........................ 2,700 174,994
--------------
226,519
SERVICES - COMMERCIAL & CONSUMER - 11.7%
AboveNet Communications, Inc.* .............. 600 78,525
AnswerThink Consulting Group, Inc.*.......... 2,000 56,000
Copart, Inc.* ............................... 12,400 257,300
Education Management Corporation* ........... 5,400 166,050
Exodus Communications, Inc.* ................ 400 53,800
ITT Educational Services, Inc.* ............. 1,400 52,587
Profit Recovery Group International,Inc.*.... 3,200 126,400
Quanta Services, Inc.* ...................... 2,100 53,419
SportsLine USA, Inc.* ....................... 1,800 82,125
USWeb Corporation* .......................... 3,500 144,375
VerticalNet, Inc.* .......................... 1,000 103,875
WebTrends Corporation* ...................... 2,800 136,150
--------------
1,310,606
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
40
<PAGE> 42
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SMALL COMPANY SERIES
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
SERVICES - COMPUTER SYSTEMS - 0.6%
Concentric Network Corporation* ............. 200 $ 14,950
SanDisk Corporation* ........................ 1,900 50,350
--------------
65,300
TELECOMMUNICATION - CELLULAR - 0.9%
Pinnacle Holdings, Inc.* .................... 7,000 105,875
TELECOMMUNICATION - LONG DISTANCE - 0.9%
Viatel, Inc.* ............................... 3,500 99,750
TEXTILES - APPAREL - 2.4%
Quiksilver, Inc.* ........................... 6,300 266,175
WASTE MANAGEMENT - 0.5%
IT Group, Inc.* ............................. 4,000 51,500
--------------
Total common stocks - 92.3% ............................ 10,282,231
Cash and other assets,
less liabilities - 7.7% .............................. 863,267
--------------
Total net assets - 100.0% .............................. $11,145,498
==============
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
COMMON STOCKS
- -------------
AEROSPACE/DEFENSE - 1.0%
Boeing Company .............................. 200 $ 6,825
General Dynamics Corporation ................ 200 12,850
Sundstrand Corporation ...................... 1,500 104,250
--------------
123,925
AGRICULTURAL PRODUCTS - 0.1%
Archer-Daniels-Midland Company .............. 300 4,406
Delta and Pine Land Company ................. 100 3,075
Pioneer Hi-Bred International, Inc. ......... 100 3,763
--------------
11,244
AIRLINES - 0.3%
AMR Corporation ............................. 300 17,569
Delta Air Lines, Inc. ....................... 300 20,850
Southwest Airlines Company .................. 200 6,050
--------------
44,469
ALUMINUM - 0.2%
Alcan Aluminum, Ltd. ........................ 100 2,581
ALCOA, Inc. ................................. 500 20,594
--------------
23,175
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOBILES - 1.0%
Ford Motor Company .......................... 1,100 $ 62,425
General Motors Corporation .................. 700 60,812
--------------
123,237
BANKS - MAJOR REGIONAL - 3.7%
Amsouth Bancorporation ...................... 100 4,550
BB&T Corporation ............................ 100 3,619
Bank of New York Company, Inc. .............. 500 17,969
Bank One Corporation ........................ 1,000 55,063
BankAmerica Corporation ..................... 1,600 113,000
BankBoston Corporation ...................... 100 4,331
Comerica, Inc.* ............................. 100 6,244
Fifth Third Bancorp ......................... 100 6,594
First Union Corporation ..................... 800 42,750
Firstar Corporation ......................... 100 8,950
Fleet Financial Group, Inc. ................. 500 18,812
Keycorp ..................................... 200 6,062
Mellon Bank Corporation ..................... 100 7,037
J.P. Morgan & Company, Inc. ................. 200 24,675
National City Corporation ................... 300 19,912
Northern Trust Corporation .................. 100 8,881
Regions Financial Corporation ............... 100 3,462
Southtrust Corporation ...................... 100 3,731
State Street Boston ......................... 100 8,219
Suntrust Banks, Inc. ........................ 300 18,675
Synovus Financial Corporation ............... 100 2,044
U.S. Bancorp ................................ 300 10,219
Union Planters Corporation .................. 500 21,969
Wachovia Corporation ........................ 100 8,119
Wells Fargo Company ......................... 1,400 49,088
--------------
473,975
BANKS - MONEY CENTER - 0.4%
Chase Manhattan Corporation ................. 700 56,919
BEVERAGES - ALCOHOLIC - 0.3%
Anheuser-Busch Companies, Inc. .............. 400 30,475
Seagram Company, Ltd. ....................... 300 15,000
--------------
45,475
BEVERAGES - SOFT DRINK - 1.2%
Coca-Cola Company ........................... 1,700 104,338
Coca-Cola Enterprises, Inc. ................. 300 9,075
PepsiCo, Inc. ............................... 1,100 43,106
--------------
156,519
BIOTECHNOLOGY - 0.3%
Amgen, Inc.* ................................ 500 37,437
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
41
<PAGE> 43
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
BROADCAST MEDIA - 0.8%
Clear Channel
Communications, Inc.* .................... 300 $ 20,119
Comcast Corporation (Cl.A) .................. 200 12,588
MediaOne Group, Inc.* ....................... 700 44,450
Viacom, Inc. (Cl.B)* ........................ 300 25,181
--------------
102,338
BUILDING MATERIALS - 0.0%
Masco Corporation ........................... 200 5,650
CHEMICALS - BASIC - 2.2%
Air Products & Chemicals, Inc. .............. 100 3,425
Dow Chemical Company ........................ 400 37,275
E.I. du Pont de Nemours
& Company ................................ 1,100 63,869
FMC Corporation* ............................ 200 9,875
Morton International, Inc. .................. 4,510 165,742
--------------
280,186
CHEMICALS - DIVERSIFIED - 0.1%
Monsanto Company ............................ 300 13,781
CHEMICALS - SPECIALTY - 0.3%
Eastman Chemical Company .................... 500 21,031
Minnesota Mining &
Manufacturing Company .................... 200 14,150
Rohm & Haas Company ......................... 100 3,356
--------------
38,537
COMMUNICATION EQUIPMENT - 1.3%
Andrew Corporation* ......................... 100 1,231
Data General Corporation* ................... 100 1,012
General Instrument Corporation* ............. 400 12,125
Lucent Technologies, Inc. ................... 600 64,650
Motorola, Inc. .............................. 500 36,625
Northern Telecom, Ltd. ...................... 500 31,063
Tellabs, Inc.* .............................. 200 19,550
--------------
166,256
COMPUTER HARDWARE - 3.2%
Compaq Computer Corporation ................. 1,400 44,362
Dell Computer Corporation* .................. 2,200 89,925
Hewlett-Packard Company ..................... 800 54,250
International Business Machines
Corporation .............................. 900 159,525
Silicon Graphics, Inc.* ..................... 500 8,344
Sun Microsystems, Inc.* ..................... 400 49,975
--------------
406,381
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE/SERVICES - 7.0%
Adobe Systems, Inc. ......................... 500 $ 28,375
America Online, Inc.* ....................... 1,150 167,900
BMC Software, Inc.* ......................... 303 11,211
Ceridian Corporation* ....................... 300 10,969
Computer Associates
International, Inc. ...................... 400 14,225
Computer Sciences Corporation* .............. 200 11,037
Compuware Corporation* ...................... 500 11,938
Microsoft Corporation* ...................... 4,400 394,350
Novell, Inc.* ............................... 700 17,631
Oracle Corporation* ......................... 1,200 31,650
Platinum Technology
International, Inc.* ..................... 3,000 76,500
Unisys Corporation .......................... 500 13,844
Xylan* ...................................... 3,000 110,438
--------------
900,068
COMPUTERS - NETWORKING - 2.0%
Ascend Communications, Inc.* ................ 1,000 83,687
Cabletron Systems, Inc.* .................... 900 7,369
Cisco Systems, Inc.* ........................ 1,400 153,388
3COM Corporation* ........................... 400 9,325
--------------
253,769
COMPUTERS - PERIPHERALS - 0.7%
EMC Corporation* ............................ 500 63,875
Seagate Technology, Inc.* ................... 700 20,694
--------------
84,569
CONSUMER FINANCE - 0.5%
Household International, Inc. ............... 300 13,688
MBNA Corporation ............................ 500 11,937
Providian Financial Corporation ............. 300 33,000
--------------
58,625
CONTAINERS & PACKAGING - 0.1%
Owens-Oillinois, Inc.* ...................... 300 7,500
Temple-Inland, Inc. ......................... 200 12,550
--------------
20,050
DISTRIBUTION - FOOD & HEALTH - 0.3%
Cardinal Health, Inc. ....................... 200 13,200
McKesson HBOC, Inc. ......................... 200 13,200
Supervalu, Inc. ............................. 400 8,250
Sysco Corporation ........................... 200 5,263
--------------
39,913
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
42
<PAGE> 44
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC COMPANIES - 2.1%
American Electric Power Company, Inc. ....... 300 $ 11,906
Carolina Power & Light Company .............. 100 3,781
Consolidated Edison, Inc. ................... 500 22,656
Duke Energy Corporation ..................... 600 32,775
Edison International ........................ 700 15,575
Entergy Corporation ......................... 700 19,250
FirstEnergy Corporation ..................... 800 22,350
GPU, Inc. ................................... 100 3,731
New Century Energies, Inc. .................. 200 6,813
Niagra Mohawk Power
Corporation* ............................. 1,400 18,813
Peco Energy Company ......................... 100 4,625
PG&E Corporation ............................ 800 24,850
PP&L Resources, Inc. ........................ 100 2,475
Pacificorp .................................. 500 8,625
Reliant Energy, Inc. ........................ 600 15,638
Southern Company ............................ 1,200 27,975
Texas Utilities Company ..................... 200 8,338
Unicom Corporation .......................... 600 21,938
--------------
272,114
ELECTRICAL EQUIPMENT - 2.6%
Amp, Inc. ................................... 200 10,737
General Electric Company .................... 2,800 309,750
Rockwell International Company .............. 100 4,244
Solectron Corporation* ...................... 300 14,569
--------------
339,300
ELECTRONICS - DEFENSE - 0.1%
Advanced Micro Devices, Inc.* ............... 400 6,200
Raytheon Company (Cl.B) ..................... 200 11,725
--------------
17,925
ELECTRONICS - SEMICONDUCTORS - 2.2%
Intel Corporation ........................... 1,400 166,775
LSI Logic Corporation* ...................... 700 21,831
Micron Technology, Inc.* .................... 300 14,475
National Semiconductor
Corporation* ............................. 700 6,519
Texas Instruments, Inc. ..................... 300 29,775
VLSI Technology, Inc.* ...................... 2,500 48,438
--------------
287,813
ENTERTAINMENT - 0.9%
King World Productions, Inc.* ............... 300 9,169
Time Warner, Inc. ........................... 900 63,956
Walt Disney Company ......................... 1,300 40,463
--------------
113,588
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
EQUIPMENT - SEMICONDUCTORS - 0.0%
Applied Materials, Inc.* .................... 100 $ 6,169
FINANCIAL - DIVERSE - 2.2%
American Express Company .................... 500 58,750
American General Corporation ................ 100 7,050
Associates First Capital Corporation ........ 400 18,000
Fannie Mae .................................. 900 62,325
Freddie Mac ................................. 600 34,275
Merrill Lynch & Company, Inc. ............... 300 26,531
Morgan Stanley Dean Witter
& Company ................................ 700 69,956
TransAmerica Corporation .................... 100 7,100
--------------
283,987
FOODS - 0.7%
Bestfoods ................................... 100 4,700
Conagra, Inc. ............................... 200 5,113
General Mills, Inc. ......................... 100 7,556
Heinz (H.J.) Company ........................ 200 9,475
Unilever NY ................................. 500 33,219
Wm. Wrigley Jr. Company ..................... 300 27,131
--------------
87,194
FOOTWEAR - 0.6%
Nike, Inc. (Cl.B) ........................... 100 5,769
Nine West Group, Inc.* ...................... 2,700 66,656
Reebok International, Ltd.* ................. 200 3,175
--------------
75,600
GAMING & LOTTERY - 0.1%
Harrah's Entertainment, Inc.* ............... 200 3,813
Mirage Resorts, Inc.* ....................... 400 8,500
--------------
12,313
HEALTH CARE - DIVERSE - 2.6%
Abbott Laboratories ......................... 1,200 56,175
American Home Products
Corporation .............................. 1,000 65,250
Bristol-Myers Squibb Company ................ 1,700 109,331
Johnson & Johnson ........................... 1,100 103,056
--------------
333,812
HEALTH CARE - LONG TERM CARE - 0.1%
HCR Manor Care, Inc.* ....................... 400 9,125
HEALTH CARE - MANAGED CARE - 0.1%
Humana, Inc.* ............................... 600 10,350
United Healthcare Corporation ............... 100 5,262
--------------
15,612
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
43
<PAGE> 45
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
HEALTH CARE - PHARMACEUTICALS - 4.0%
Eli Lilly & Company ......................... 900 $ 76,388
Merck & Company, Inc. ....................... 2,000 160,375
Pharmacia & Upjohn, Inc. .................... 300 18,712
Pfizer, Inc. ................................ 1,100 152,625
Schering-Plough Corporation ................. 1,100 60,844
Warner-Lambert Company ...................... 600 39,712
--------------
508,656
HEALTH CARE - SPECIALIZED SERVICES - 0.1%
Alza Corporation* ........................... 240 9,180
HOMEBUILDING - 0.2%
Centex Corporation* ......................... 500 16,687
Pulte Corporation ........................... 400 8,325
--------------
25,012
HOSPITAL MANAGEMENT - 0.0%
Columbia/HCA Healthcare Corporation ......... 100 1,894
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.2%
Maytag Corporation .......................... 200 12,075
Whirlpool Corporation ....................... 200 10,875
--------------
22,950
HOUSEHOLD PRODUCTS - 1.1%
Clorox Company .............................. 100 11,719
Colgate-Palmolive Company ................... 200 18,400
Procter & Gamble Company .................... 1,100 107,731
--------------
137,850
INSURANCE - BROKERS - 0.2%
AON Corporation ............................. 100 6,325
Marsh & McLennan Companies, Inc. ............ 200 14,838
Provident Companies, Inc. ................... 100 3,456
--------------
24,619
INSURANCE - MULTILINE - 2.3%
American International Group, Inc. .......... 1,100 132,688
Cigna Corporation ........................... 100 8,381
Citigroup, Inc. ............................. 2,100 134,138
Hartford Financial Services
Group, Inc. .............................. 100 5,681
Lincoln National Corporation ................ 100 9,887
--------------
290,775
INSURANCE - PROPERTY & CASUALTY - 0.2%
Allstate Corporation ........................ 600 22,237
INVESTMENT BANK/BROKERAGE - 0.5%
Lehman Brothers Holdings, Inc. .............. 100 5,975
Schwab (Charles) Corporation ................ 600 57,675
--------------
63,650
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
IRON & STEEL - 0.2%
Bethlehem Steel Corporation* ................ 2,400 $ 19,800
Worthington Industries, Inc. ................ 400 4,700
--------------
24,500
LODGING - HOTELS - 0.2%
Carnival Corporation (Cl.A) ................. 400 19,425
Marriott International, Inc. (Cl.A) ......... 100 3,362
--------------
22,787
MACHINERY - DIVERSE - 0.4%
Caterpillar, Inc. ........................... 700 32,156
Ingersoll-Rand Company ...................... 100 4,963
Timken Company .............................. 1,000 16,250
--------------
53,369
MANUFACTURING - DIVERSIFIED - 0.9%
AlliedSignal, Inc. .......................... 300 14,756
Corning, Inc. ............................... 100 6,000
Illinois Tool Works, Inc. ................... 200 12,375
Textron, Inc. ............................... 200 15,475
Tyco International, Ltd. .................... 300 21,525
United Technologies Corporation ............. 300 40,631
--------------
110,762
MANUFACTURING - SPECIALIZED - 0.9%
Thermo Electron Corporation* ................ 600 8,138
U.S. Filter Corporation* .................... 3,400 104,125
--------------
112,263
MEDICAL PRODUCTS & SUPPLIES - 0.7%
Baxter International, Inc. .................. 200 13,200
Becton, Dickinson & Company ................. 100 3,831
Boston Scientific Corporation* .............. 500 20,281
Guidant Corporation ......................... 200 12,100
Medtronic, Inc. ............................. 400 28,700
St. Jude Medical, Inc.* ..................... 300 7,313
--------------
85,425
METALS & MINING - 0.1%
Freeport-McMoran
Copper & Gold, Inc.* ..................... 800 8,700
MISCELLANEOUS - 1.2%
Aeroquip-Vickers, Inc. ...................... 2,450 140,416
Phelps Dodge Corporation .................... 300 14,775
--------------
155,191
MISCELLANEOUS BUSINESS SERVICES - 0.2%
ITT Industries, Inc. ........................ 600 21,225
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
44
<PAGE> 46
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MULTIMEDIA - 0.2%
CBS Corporation* ............................ 700 $ 28,656
NATURAL GAS - 0.4%
Coastal Corporation ......................... 400 13,200
Consolidated Natural Gas Company ............ 300 14,606
Sempra Energy ............................... 500 9,594
Williams Companies, Inc. .................... 300 11,850
--------------
49,250
OFFICE EQUIPMENT & SUPPLIES - 0.2%
Moore Corporation, Ltd. ..................... 800 7,900
Pitney-Bowes, Inc. .......................... 200 12,750
--------------
20,650
OIL - DOMESTIC - 0.3%
Atlantic Richfield Company .................. 500 36,500
OIL - INTERNATIONAL - 3.4%
Chevron Corporation ......................... 800 70,750
Exxon Corporation ........................... 2,200 155,238
Mobil Corporation ........................... 700 61,600
Royal Dutch Petroleum
Company ADR .............................. 2,100 109,200
Texaco, Inc. ................................ 600 34,050
--------------
430,838
OIL & GAS - DRILLING & EQUIPMENT - 0.2%
Schlumberger, Ltd. .......................... 400 24,075
OIL & GAS - EXPLORATION & PRODUCTION - 0.2%
Enron Corporation ........................... 200 12,850
Kerr-McGee Corporation ...................... 500 16,406
--------------
29,256
OIL & GAS - REFINING & MARKETING - 0.1%
Ashland, Inc. ............................... 200 8,187
PAPER & FOREST PRODUCTS - 0.2%
International Paper Company ................. 200 8,437
Potlatch Corporation ........................ 500 16,969
Weyerhaeuser Company ........................ 100 5,550
--------------
30,956
PERSONAL CARE - 0.4%
Avon Products, Inc. ......................... 100 4,706
Gillette Company ............................ 900 53,494
--------------
58,200
PHOTOGRAPHY/IMAGING - 0.4%
Eastman Kodak Company ....................... 400 25,550
Xerox Corporation ........................... 500 26,687
--------------
52,237
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PUBLISHING - 0.4%
Deluxe Corporation .......................... 500 $ 14,563
R.R. Donnelley & Sons Company ............... 300 9,656
Knight-Ridder, Inc. ......................... 300 15,000
McGraw-Hill Companies, Inc. ................. 200 10,900
--------------
50,119
PUBLISHING - NEWSPAPER - 0.0%
Gannett Company, Inc. ....................... 100 6,300
RAILROADS - 0.2%
Burlington Northern Sante Fe
Corporation .............................. 300 9,862
CSX Corporation ............................. 100 3,894
Kansas City Southern Industries, Inc. ....... 200 11,400
Union Pacific Corporation ................... 100 5,344
--------------
30,500
RESTAURANTS - 0.5%
McDonald's Corporation ...................... 1,000 45,312
Tricon Global Restaurants, Inc.* ............ 200 14,050
--------------
59,362
RETAIL - APPAREL - 0.3%
Gap, Inc. ................................... 600 40,387
TJX Companies, Inc. ......................... 100 3,400
--------------
43,787
RETAIL - BUILDING SUPPLIES - 0.7%
Home Depot, Inc. ............................ 1,200 74,700
Lowe's Companies, Inc. ...................... 200 12,100
--------------
86,800
RETAIL - DEPARTMENT STORES - 0.6%
Dillard's, Inc. ............................. 400 10,150
Dollar General Corporation .................. 100 3,400
Federated Department Stores, Inc.* .......... 300 12,037
Harcourt General, Inc. ...................... 400 17,725
Kohl's Corporation* ......................... 400 28,350
May Department Stores Company ............... 150 5,869
--------------
77,531
RETAIL - DRUG STORES - 0.3%
CVS Corporation ............................. 300 14,250
Rite Aid Corporation ........................ 100 2,500
Walgreen Company ............................ 700 19,775
--------------
36,525
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
45
<PAGE> 47
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - FOOD CHAINS - 0.4%
Albertson's, Inc. ........................... 100 $ 5,431
American Stores Company ..................... 100 3,300
Great Atlantic & Pacific Tea
Company, Inc. ............................ 300 9,000
Kroger Company* ............................. 200 11,975
Safeway, Inc.* .............................. 500 25,656
--------------
55,362
RETAIL - GENERAL MERCHANDISE - 2.1%
Costco Companies, Inc.* ..................... 200 18,313
Dayton Hudson Corporation ................... 300 19,988
Kmart Corporation* .......................... 700 11,769
Fred Meyer, Inc.* ........................... 400 23,550
Wal-Mart Stores, Inc. ....................... 2,100 193,594
--------------
267,214
RETAIL - SPECIALTY - 0.4%
Autozone, Inc.* ............................. 200 6,075
Circuit City Stores - Circuit City
Group .................................... 400 30,650
Staples, Inc.* .............................. 600 19,725
--------------
56,450
SAVINGS & LOANS - 0.3%
Golden West Financial ....................... 200 19,100
Washington Mutual, Inc. ..................... 400 16,350
--------------
35,450
SERVICES - ADVERTISING & MARKETING - 0.1%
Omnicom Group, Inc. ......................... 100 7,994
SERVICES - COMMERCIAL & CONSUMER - 0.0%
IMS Health, Inc. ............................ 200 6,625
Laidlaw, Inc. ............................... 100 581
--------------
7,206
SERVICES - COMPUTER SYSTEMS - 0.2%
Apple Computer, Inc.* ....................... 300 10,781
Gateway 2000, Inc.* ......................... 200 13,713
--------------
24,494
SERVICES - DATA PROCESSING - 0.6%
Automatic Data Processing, Inc. ............. 400 16,550
Electronic Data Systems
Corporation .............................. 500 24,344
First Data Corporation ...................... 200 8,550
Paychex, Inc. ............................... 600 28,462
--------------
77,906
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION - CELLULAR - 0.3%
Nextel Communications, Inc. (Cl.A)* ......... 400 $ 14,650
Sprint Corporation (PCS Group)* ............. 600 26,587
--------------
41,237
TELECOMMUNICATION - LONG DISTANCE - 2.3%
AT&T Corporation ............................ 1,773 141,508
MCI WorldCom, Inc.* ......................... 1,600 141,700
Scientific-Atlanta, Inc. .................... 600 16,350
--------------
299,558
TELECOMMUNICATIONS - 2.7%
Airtouch Communications, Inc.* .............. 500 48,313
Alltel Corporation .......................... 100 6,237
Ameritech Corporation ....................... 900 52,088
Bell Atlantic Corporation ................... 1,100 56,856
BellSouth Corporation ....................... 1,600 64,100
GTE Corporation ............................. 800 48,400
SBC Communications, Inc. .................... 1,600 75,400
--------------
351,394
TELEPHONE - 0.4%
US West, Inc. ............................... 800 44,050
Century Telephone Enterprises* .............. 200 14,050
--------------
58,100
TEXTILES - APPAREL - 0.8%
Fruit of the Loom, Inc. (Cl.A)* ............. 400 4,150
St. John Knits, Inc. ........................ 3,750 98,906
--------------
103,056
TOBACCO - 0.9%
Philip Morris Companies, Inc. ............... 2,500 87,969
RJR Nabisco Holdings Corporation ............ 100 2,500
UST, Inc. ................................... 800 20,900
--------------
111,369
TRUCKING - 0.2%
FDX Corporation* ............................ 300 27,844
TRUCKING PARTS & SUPPLIES - 0.1%
Navistar International Corporation* ......... 300 12,056
WASTE MANAGEMENT - 0.9%
Browning-Ferris Industries .................. 2,600 100,262
Waste Management, Inc. ...................... 400 17,750
--------------
118,012
--------------
Total common stocks - 76.6% ............................... 9,836,526
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
46
<PAGE> 48
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
U.S. GOVERNMENT & AGENCIES OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT - 1.3%
U.S. Treasury Bill,
4.36% - 5/20/99 .......................... $ 125,000 $ 124,244
4.37% - 5/20/99 .......................... $ 40,000 39,761
--------------
164,005
--------------
Total investments - 77.9% .............................. 10,000,531
Cash and other assets,
less liabilities - 22.1% ............................. 2,831,926
--------------
Total net assets - 100.0% .............................. $12,832,457
==============
SECURITY EQUITY FUND - INTERNATIONAL SERIES
FOREIGN STOCKS
- --------------
AUSTRALIA - 2.9%
Brambles Industries, Ltd. ................... 2,000 50,627
Cable & Wireless Optus, Ltd.* ............... 5,600 12,979
Tabcorp Holdings, Ltd. ...................... 3,900 29,554
Telestra Corporation ........................ 3,000 15,639
Westpac Banking Corporation, Ltd. ........... 5,800 42,121
--------------
150,920
AUSTRIA - 0.8%
Erste Bank Der Oesterreichischen
Sparkassen AG ............................ 800 40,593
BERMUDA - 0.5%
Global Crossing, Ltd.* ...................... 500 23,125
BOTSWANA - 0.2%
Sechaba Breweries, Ltd. ..................... 10,800 11,688
BRAZIL - 0.3%
Telecommunicacoes Brasilerias S.A ........... 300 13,464
CANADA - 1.9%
Newcourt Credit Group, Inc. ................. 100 2,690
Northern Telecom, Ltd. ...................... 900 55,923
Rogers Communications, Inc.(Cl.B)* .......... 2,100 38,036
--------------
96,649
FINLAND - 1.3%
Helsigin Puhelin Oyj ........................ 900 44,015
KCI Konecranes International PLC ............ 270 9,328
UPM-Kymmene Oyj ............................. 470 12,990
--------------
66,333
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES (Continued)
NUMBER MARKET
FOREIGN STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
FRANCE - 14.7%
Alstom* ..................................... 1,500 $ 44,534
AXA ......................................... 500 66,287
Banque Nationale De Paris ................... 400 34,806
Canal Plus .................................. 300 87,933
Carrefour S.A ............................... 50 38,542
Eiffage ..................................... 160 10,589
Neopost S.A.* ............................... 1,090 17,534
Seita ....................................... 800 54,369
Societe Generale - A ........................ 190 36,512
Societe Generale D Enterprises S.A .......... 2,000 94,141
Suez Lyonnaise Des Eaux ..................... 500 92,522
Total S.A ................................... 600 73,909
Unibail ..................................... 300 37,570
Vivendi ..................................... 300 73,812
--------------
763,060
GERMANY - 6.8%
Allianz AG .................................. 200 60,890
DaimlerChrysler AG* ......................... 500 43,508
Deutsche Telekom AG ......................... 1,500 63,804
Hoescht AG .................................. 800 50,068
Hypovereinsbank ............................. 1,000 59,810
Mannesmann AG ............................... 500 63,858
Metro AG .................................... 20 11,422
--------------
353,360
GREECE - 1.0%
Alpha Credit Bank ........................... 400 26,540
Hellenic Telecommunication
Organization S.A ......................... 600 14,550
Panafon Hellenic Telecom Company* ........... 400 10,381
--------------
51,471
HONG KONG - 1.3%
China Telecommunications
(Hong Kong), Ltd.* ....................... 14,000 23,304
Hutchinson Whampoa, Ltd. .................... 2,000 15,743
Sun Hung Kai Properties ..................... 4,000 29,937
--------------
68,984
HUNGARY - 0.4%
OTP Bank .................................... 490 18,978
IRELAND - 3.2%
Bank of Ireland ............................. 3,500 73,305
CRH PLC ..................................... 4,000 69,051
Esat Telcon Group PLC ADR* .................. 600 25,125
--------------
167,481
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
47
<PAGE> 49
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES (CONTINUED)
NUMBER MARKET
FOREIGN STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ITALY - 10.0%
Assicurazioni Gererali ...................... 1,700 $ 68,090
Banca Popolare Di Bergamo
Credito Varesino Spa ..................... 1,500 38,056
Banca Popolare Di Milano .................... 4,300 40,063
Banco Commerciale Italiane .................. 9,900 81,229
Credito Italiano ............................ 18,500 99,863
Eni Spa ..................................... 8,200 52,231
Parmalat Finanziaria Spa .................... 21,000 29,927
Telecom Italia Spa .......................... 10,700 113,669
--------------
523,128
JAPAN - 8.7%
Fuji Heavy Industries, Ltd. ................. 8,000 49,514
Fujitsu, Ltd. ............................... 4,000 64,241
Kao Corporation ............................. 3,000 66,242
Murata Manufacturing
Company, Ltd. ............................ 1,000 53,196
Nippon Telegraph & Telephone
Corporation .............................. 10 97,948
NTT Mobile Communication
Network, Inc. ............................ 1 49,396
Takeda Chemical Industries .................. 1,000 38,757
Yamanouchi Pharmaceutical
Company, Ltd. ............................ 1,000 31,664
--------------
450,958
MEXICO - 0.5%
Grupo Televisa S.A .......................... 700 21,963
Telefonos De Mexico ADR ..................... 100 6,550
--------------
28,513
NETHERLANDS - 7.3%
Benckiser NV ................................ 800 44,868
Equant NV* .................................. 900 68,403
Ing Groep NV ................................ 1,200 66,136
Koninklijke (Royal) Philips
Electronics NV ........................... 500 40,728
Koninklijke Ahold NV ........................ 2,000 76,652
Nutreco Holding NV .......................... 1,300 53,543
Vedior NV ................................... 1,200 27,789
--------------
378,119
POLAND - 0.3%
Telekom Polska 144A GDR* .................... 2,553 13,464
<CAPTION>
NUMBER MARKET
FOREIGN STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PORTUGAL - 2.4%
Banco Comercial Portugues S.A ............... 1,300 $ 39,297
BPI-SGPS S.A ................................ 1,000 30,391
Telecal-Comunicacaeos Pessoais S.A. ......... 350 55,734
--------------
125,422
SINGAPORE - 0.9%
Natsteel Electronics, Ltd. .................. 5,900 16,111
Oversea-Chinese Banking
Corporation, Ltd. ........................ 4,300 29,106
--------------
45,217
SOUTH KOREA - 0.4%
Korea Electric Power Corporation ADR ........ 1,400 17,763
SPAIN - 6.8%
Banco Central Hispanoamericano .............. 3,100 38,856
Caja Postal Y Banco Hipotercario
De Argentaria ............................ 2,700 64,886
Endesa S.A .................................. 2,500 63,102
Fomento De Construcciones Y
Contratas S.A ............................ 1,400 86,152
Tabacalera S.A .............................. 2,401 48,654
Telefonica S.A .............................. 1,300 55,143
--------------
356,793
SWEDEN - 4.6%
Atlas Copco AB (Cl.A) ....................... 1,500 40,679
Castellum AB ................................ 3,350 31,166
Electrolux AB - Series B .................... 3,560 70,568
Skandinaviska Enskilda Banken ............... 4,600 56,220
Svenska Cellulosa AB - B .................... 700 15,195
Telefonaktiebolaget LM Ericsson ............. 1,100 26,754
--------------
240,582
SWITZERLAND - 4.3%
Credit Suisse Group ......................... 100 18,647
UBS AG ...................................... 200 62,834
Zurich Allied AG ............................ 100 63,982
Swisscom AG* ................................ 200 78,103
--------------
223,566
THAILAND - 0.1%
Thai Farmers Bank Public
Company, Ltd. ............................ 4,000 8,093
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
48
<PAGE> 50
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES (CONTINUED)
NUMBER MARKET
FOREIGN STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM - 15.0%
Barclays PLC ................................ 2,200 $ 63,962
British Land Company PLC .................... 6,700 57,702
British Steel PLC* .......................... 12,500 25,324
BTR Siebe PLC ............................... 11,440 50,924
Colt Telecom PLC* ........................... 4,000 70,513
Compass Group PLC ........................... 6,100 71,146
Glaxo Wellcome PLC .......................... 1,600 53,543
Marks & Spencer PLC ......................... 5,760 37,612
Orange PLC* ................................. 2,700 37,963
Pearson PLC ................................. 1,900 43,585
Peninsular & Oriental Steam
Navigation Company ....................... 3,250 47,481
Railtrack Group PLC ......................... 2,900 66,383
Sema Group PLC .............................. 3,700 41,781
Telewest Communications PLC* ................ 7,900 34,433
Vodafone Group PLC .......................... 4,300 80,313
--------------
782,665
UNITED STATES - 0.8%
Global Telesystems Group, Inc. .............. 700 39,156
--------------
Total investments - 97.4% .............................. 5,070,268
Cash and other assets,
less liabilities - 2.6% ........................... 133,610
--------------
Total net assets - 100.0% .............................. $ 5,203,878
==============
<CAPTION>
INVESTMENT CONCENTRATION
- ------------------------
At March 31, 1999, International Series' investment concentration, by industry,
was as follows:
<S> <C> <C>
Aerospace/Defense .................................................... 0.0%
Appliances ........................................................... 1.4%
Automobiles .......................................................... 1.8%
Banks & Credit ....................................................... 20.0%
Beverages ............................................................ 0.2%
Broadcast Media ...................................................... 2.1%
Building & Construction .............................................. 6.8%
Chemicals ............................................................ 1.2%
Computer Software .................................................... 0.8%
Computer Systems ..................................................... 2.6%
Cosmetics ............................................................ 1.3%
Electric Utilities ................................................... 1.6%
Electronics .......................................................... 2.1%
Engineering .......................................................... 0.2%
Entertainment ........................................................ 1.4%
Financial Services ................................................... 0.9%
Food Processing ...................................................... 3.0%
Food Wholesalers ..................................................... 1.5%
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT CONCENTRATION (CONTINUED)
Household Products ................................................... 0.9%
Industrial Services .................................................. 1.4%
Insurance ............................................................ 5.0%
Machinery ............................................................ 1.7%
Manufacturing ........................................................ 2.6%
Medical .............................................................. 0.7%
Oil .................................................................. 2.4%
Paper & Forest Products .............................................. 0.5%
Pharmaceuticals ...................................................... 1.6%
Photography/Imaging .................................................. 0.0%
Real Estate Development .............................................. 3.0%
Retail ............................................................... 2.4%
Services ............................................................. 0.5%
Steel ................................................................ 0.5%
Telecommunications ................................................... 20.1%
Tobacco .............................................................. 2.0%
Transportation ....................................................... 3.2%
Cash and other assets, less liabilities .............................. 2.6%
-------
100.0%
=======
<CAPTION>
SECURITY EQUITY FUND - SELECT 25 SERIES
COMMON STOCKS
- -------------
<S> <C> <C>
BROADCAST MEDIA - 3.9%
Clear Channel Communications, Inc.* ......... 6,600 $442,612
COMMUNICATION EQUIPMENT - 3.7%
Lucent Technologies, Inc. ................... 4,000 431,000
COMPUTERS - HARDWARE - 6.5%
Dell Computer Corporation* .................. 7,800 318,825
Sun Microsystems, Inc.* ..................... 3,400 424,788
--------------
743,613
COMPUTERS - SOFTWARE & SERVICES - 7.5%
America Online, Inc.* ....................... 3,000 438,000
Microsoft Corporation* ...................... 4,700 421,237
--------------
859,237
COMPUTERS - NETWORKING - 3.7%
Cisco Systems, Inc.* ........................ 3,900 427,294
COMPUTERS - PERIPHERALS - 3.8%
EMC Corporation* ............................ 3,400 434,350
DISTRIBUTION - FOOD & HEALTH - 3.8%
Cardinal Health, Inc. ....................... 6,600 435,600
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
49
<PAGE> 51
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SELECT 25 SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - 3.8%
General Electric Company .................... 3,900 $ 431,438
ENTERTAINMENT - 3.8%
Time Warner, Inc. ........................... 6,100 433,481
FINANCIAL - DIVERSE - 3.8%
Fannie Mae .................................. 6,300 436,275
HEALTH CARE - DIVERSE - 3.7%
Bristol-Myers Squibb Company ................ 6,700 430,894
HOUSEHOLD PRODUCTS - 3.8%
Colgate-Palmolive Company ................... 4,800 441,600
MANUFACTURING - DIVERSIFIED - 3.8%
Tyco International, Ltd. .................... 6,100 437,675
MEDICAL PRODUCTS & SUPPLIES - 3.7%
Medtronic, Inc. ............................. 6,000 430,500
PHARMACEUTICALS - 9.9%
Elan Corporation PLC, ADR* .................. 6,200 432,450
Schering-Plough Corporation ................. 7,800 431,438
Watson Pharmaceuticals, Inc.* ............... 6,100 269,162
--------------
1,133,050
RETAIL - GENERAL MERCHANDISE - 3.7%
Wal-Mart Stores, Inc. ....................... 4,600 424,062
RETAIL - SPECIALTY - 3.7%
Home Depot, Inc. ............................ 6,800 423,300
SERVICES - ADVERTISING/MARKETING - 3.8%
Omnicom Group, Inc. ......................... 5,500 439,656
SERVICES - COMPUTER SYSTEMS - 3.8%
SunGard Data Systems, Inc.* ................. 10,900 436,000
SERVICES - DATA PROCESSING - 3.8%
Automatic Data Processing, Inc. ............. 10,600 438,575
TELECOMMUNICATIONS - LONG DISTANCE - 3.7%
MCI WorldCom, Inc.* ......................... 4,800 425,100
--------------
Total common stocks - 91.7% ............................ 10,535,312
Cash, other assets,
less liabilities - 8.3% ........................... 951,787
--------------
Total net assets - 100.0% .............................. $11,487,099
==============
<CAPTION>
SECURITY ULTRA FUND -
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AIR FREIGHT - 2.1%
Expeditors International of
Washington, Inc. ......................... 34,000 $ 1,836,000
BANKS - MAJOR REGIONAL - 5.3%
BankBoston Corporation ...................... 21,700 939,881
Mercantile Bankcorporation, Inc. ............ 30,000 1,425,000
Northern Trust Corporation .................. 26,000 2,309,125
--------------
4,674,006
BIOTECHNOLOGY - 4.6%
Ligand Pharmaceuticals,
Inc. (Cl.B)* ............................. 180,000 1,473,750
Millennium Pharmaceuticals, Inc.* ........... 70,000 2,187,500
Organogenisis, Inc.* ........................ 35,000 404,687
--------------
4,065,937
CHEMICALS - SPECIALTY - 1.8%
Bush Boake Allen, Inc.* ..................... 32,000 880,000
Material Sciences Corporation* .............. 105,200 670,650
--------------
1,550,650
COMMUNICATION EQUIPMENT - 9.1%
Comverse Technology, Inc.* .................. 90,000 7,650,000
Transcrypt International, Inc.* ............. 166,500 395,438
--------------
8,045,438
COMPUTER SOFTWARE/SERVICES - 14.3%
American Management Systems, Inc.* .......... 83,000 2,832,375
Computer Sciences Corporation* .............. 27,000 1,490,063
DST Systems, Inc.* .......................... 13,640 819,253
Electronic Processing, Inc.* ................ 35,000 275,625
Rational Software Corporation* .............. 140,000 3,753,750
Safeguard Scientifics, Inc.* ................ 23,000 1,559,688
VERITAS Software Corporation* ............... 23,000 1,857,250
--------------
12,588,004
ELECTRICAL EQUIPMENT - 2.7%
Maxwell Technologies, Inc.* ................. 103,300 2,414,637
ELECTRONIC EQUIPMENT - 2.5%
Lernout & Hauspie Speech
Products N.V.* ........................... 73,000 2,190,000
ELECTRONICS - INSTRUMENTATION - 4.4%
EG&G, Inc. .................................. 44,000 1,160,500
Perkin-Elmer Corporation .................... 28,000 2,717,750
--------------
3,878,250
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
50
<PAGE> 52
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY ULTRA FUND - (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - SEMICONDUCTORS - 2.3%
S3, Inc.* ................................... 101,000 $ 757,500
Uniphase Corporation* ....................... 11,100 1,277,888
--------------
2,035,388
ENTERTAINMENT - 1.6%
Cinar Corporation (Cl.B)* ................... 37,700 867,100
Metromedia International Group, Inc.* ....... 120,000 585,000
--------------
1,452,100
FOODS - 1.5%
Chiquita Brands International, Inc. ......... 132,000 1,344,750
HEALTH CARE - MANAGED CARE - 1.2%
United Healthcare Corporation ............... 20,000 1,052,500
HEALTH CARE - SPECIALIZED SERVICES - 2.1%
CryoLife, Inc.* ............................. 36,000 396,000
Shire Pharmaceuticals Group, PLC* ........... 65,000 1,482,812
--------------
1,878,812
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.5%
Meadowcraft, Inc.* .......................... 70,000 420,000
INSURANCE - LIFE & HEALTH - 5.1%
AFLAC, Inc. ................................. 82,000 4,463,875
INVESTMENT BANK/BROKERAGE - 1.4%
Legg Mason, Inc. ............................ 37,200 1,253,175
LEISURE TIME PRODUCTS - 1.9%
Hasbro, Inc. ................................ 57,000 1,649,437
MANUFACTURING - SPECIALIZED - 1.8%
Catalytica, Inc.* ........................... 72,000 792,000
Ionics, Inc.* ............................... 26,000 783,250
--------------
1,575,250
MEDICAL PRODUCTS & SUPPLIES - 3.0%
CLOSURE Medical Corporation* ................ 24,000 912,000
Stryker Corporation ......................... 22,000 1,109,625
Sunrise Medical, Inc.* ...................... 100,000 625,000
--------------
2,646,625
OIL - INTERNATIONAL - 1.0%
Tesoro Petroleum Corporation* ............... 80,100 881,100
OIL & GAS - DRILLING & EQUIPMENT - 1.0%
EMSCO International, Inc. ................... 63,000 838,687
OIL & GAS - EXPLORATION & PRODUCTION - 7.9%
Anadarko Petroleum Corporation .............. 62,000 2,340,500
Apache Corporation .......................... 89,000 2,319,562
Burlington Resources, Inc. .................. 40,000 1,597,500
Ocean Energy, Inc.* ......................... 108,000 735,750
--------------
6,993,312
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS - 8.2%
Dura Pharmaceuticals, Inc.* ................. 85,000 $ 1,200,625
Mylan Laboratories, Inc. .................... 126,300 3,465,356
Teva Pharmaceutical Industries,
Ltd. ADR ................................. 55,000 2,609,063
--------------
7,275,044
PUBLISHING - NEWSPAPER - 1.7%
E.W. Scripps Company (Cl.A) ................. 34,000 1,504,500
RAILROADS - 1.5%
RailAmerica, Inc.* .......................... 150,000 1,312,500
RESTAURANTS - 2.1%
Cheesecake Factory, Inc.* ................... 79,900 1,897,625
RETAIL - SPECIALTY - 0.4%
Keystone Automotive Industries, Inc.* ....... 20,000 325,000
SERVICES - ADVERTISING/MARKETING - 4.5%
Acxiom Corporation* ......................... 70,000 1,855,000
True North Communications, Inc. ............. 75,000 2,109,375
--------------
3,964,375
SERVICES - COMMERCIAL & CONSUMER - 1.2%
Cerner Corporation* ......................... 57,000 915,563
FTI Consulting, Inc.* ....................... 53,500 153,813
--------------
1,069,376
SERVICES - COMPUTER SYSTEMS - 1.1%
Complete Business Solutions, Inc.* .......... 51,000 1,000,875
--------------
Total common stocks - 99.8% ............................ 88,077,228
Cash and other assets,
less liabilities - 0.2% .............................. 219,938
--------------
Total net assets - 100.0% .............................. $88,297,166
==============
</TABLE>
The identified cost of investments owned at March 31, 1999 was the same for book
and tax purposes.
* Securities on which no cash dividend was paid during the preceding twelve
months.
ADR (American Depositary Receipt)
(1)Trust preferred securities - Securities issued by financial institutions to
augment their Tier 1 capital base. Issued on a subordinate basis relative to
senior notes or debentures. Institutions may defer cash payments for up to 10
pay periods.
See accompanying notes.
- --------------------------------------------------------------------------------
51
<PAGE> 53
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
--------------------------------------------------------------
SECURITY ASSET SOCIAL
GROWTH AND EQUITY GLOBAL ALLOCATION AWARENESS
INCOME FUND SERIES SERIES SERIES SERIES
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (identified cost:
$85,042,877, $584,800,279, $34,237,018,
$6,545,031 and $12,043,004 respectively)........ $82,460,969 $1,047,021,625 $38,798,763 $7,109,906 $16,986,420
Cash.............................................. 493,756 57,490,359 2,292,172 68,721 1,079,918
Receivables:
Fund shares sold................................ 10,155 2,293,250 6,963 613 129,632
Securities sold................................. 1,419,627 6,664,410 2,560,363 2,282 --
Forward foreign exchange contracts.............. -- -- 5,318 -- --
Interest........................................ 58,378 814,573 4,053 14,690 3,884
Dividends....................................... 175,553 190,278 77,395 10,662 15,092
Foreign taxes recoverable....................... -- -- 22,067 1,177 --
Security Management Company..................... -- -- -- 3,704 --
Prepaid expenses.................................. -- -- -- 6,566 12,679
----------- ------------- ----------- ---------- -----------
Total assets.................................. 84,618,438 1,114,474,495 43,767,094 7,218,321 18,227,625
----------- ------------- ----------- ---------- -----------
Liabilities
Payable for:
Securities purchased............................ $ -- $ 2,437,975 $ 1,456,431 $ -- $ --
Fund shares redeemed............................ 49,291 553,730 62,601 4,974 10,089
Forward foreign exchange contracts.............. -- -- 36,884 -- --
Other liabilities:
Management fees................................. 94,961 1,015,808 74,160 6,474 --
Custodian fees.................................. -- -- -- 450 15,851
Transfer and administration fees................ -- -- -- 1,094 3,539
Professional fees............................... -- -- -- 7,803 2,011
12b-1 distribution plan fees.................... 8,506 142,817 15,159 3,275 6,238
Other payables.................................. -- -- -- 703 224
----------- -------------- ----------- ---------- -----------
Total liabilities.......................... 152,758 4,150,330 1,645,235 24,773 37,952
----------- -------------- ----------- ---------- -----------
Net Assets........................................ $84,465,680 $1,110,324,165 $42,121,859 $7,193,548 $18,189,673
=========== ============== =========== ========== ===========
Net assets consist of:
Paid in capital................................... $83,916,321 $ 638,044,216 $36,357,619 $6,612,602 $12,679,165
Undistributed net investment income (loss) ....... 476,921 139,922 (377,268) (12,485) (50,349)
Accumulated net realized gains (losses) on
investments, futures and foreign currencies..... 2,654,346 9,918,681 1,617,718 28,564 617,440
Net unrealized appreciation (depreciation) on
investments, futures and foreign currencies..... (2,581,908) 462,221,346 4,523,790 564,867 4,943,417
----------- ------------- ----------- ---------- -----------
Total net assets............................ $84,465,680 $1,110,324,165 $42,121,859 $7,193,548 $18,189,673
=========== ============== =========== ========== ===========
Class "A" Shares
Capital shares outstanding........................ 10,801,419 94,214,848 1,960,437 311,438 455,513
Net assets........................................ $75,154,575 $949,377,791 $24,800,163 $3,537,273 $11,021,182
Net asset value per share......................... $6.96 $10.08 $12.65 $11.36 $24.20
----------- ------------- ----------- ---------- -----------
Offering price per share (net asset value
divided by 94.25%).............................. $7.38 $10.70 $13.42 $12.05 $25.68
=========== ============== =========== ========== ===========
Class "B" Shares
Capital shares outstanding........................ 1,374,025 16,613,122 1,416,189 323,909 298,638
Net assets........................................ $9,309,739 $160,112,660 $17,316,633 $3,655,968 $7,053,964
Net asset value per share ........................ $6.78 $9.64 $12.23 $11.29 $23.62
=========== ============== =========== ========== ===========
Class "C" Shares
Capital shares outstanding........................ 196 82,916 401 27 4,740
Net assets........................................ $1,366 $833,714 $5,063 $307 $114,527
Net asset value per share ........................ $6.97 $10.06 $12.64 $11.35 $24.16
=========== ============== =========== ========== ===========
</TABLE>
See accompanying notes.
- -------------------------------------------------------------------------------
52
<PAGE> 54
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
----------------------------------------------------------------------
VALUE SMALL COMPANY ENHANCED INTERNATIONAL SELECT 25 SECURITY
SERIES SERIES INDEX SERIES SERIES SERIES ULTRA FUND
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at value (identified cost:
$21,387,250, $8,454,024, $9,921,497,
$5,236,847, $10,138,288
and $70,797,096 respectively)............... $24,125,325 $10,282,231 $10,000,531 $5,070,268 $10,535,312 $88,077,228
Cash.......................................... 108,156 860,982 2,598,160 376,684 1,937,749 1,047,009
Receivables:
Fund shares sold............................ 22,031 1,544 419,171 500 447,968 13,031
Securities sold............................. 141,251 419,703 -- 166,420 345,202 173,049
Forward foreign exchange contracts.......... -- -- -- 794 -- --
Interest.................................... 476 4,792 5,330 953 5,253 4,764
Dividends................................... 20,852 -- 9,416 9,133 3,928 51,650
Foreign taxes recoverable..................... -- -- -- 1,032 -- --
Prepaid expenses.............................. 8,324 6,015 18,432 17,706 18,480 --
----------- ------------ ----------- ---------- ---------- -----------
Total assets.............................. 24,426,415 11,575,267 13,051,040 5,643,490 13,293,892 89,366,731
=========== ============ =========== ========== ========== ===========
Liabilities
Payable for:
Securities purchased........................ $ 238,039 $ 421,390 $ 147,171 $ 423,766 $ 1,783,426 $ 861,865
Fund shares redeemed........................ 78 44 293 505 10,498 106,597
Forward foreign exchange contracts.......... -- -- -- 1,896 -- --
Other liabilities:
Management fees............................. 21,286 -- -- -- 5,398 96,456
Custodian fees.............................. 927 2,600 1,192 3,178 397 --
Transfer and administration fees............ 4,239 1,558 20 30 1,264 --
Professional fees........................... 3,094 2,312 358 147 358 --
12b-1 distribution plan fees................ 7,537 1,778 6,981 3,202 5,403 4,647
Variation margin payable.................... -- -- 50,400 -- -- --
Other payables.............................. 438 87 12,168 6,888 49 --
----------- ------------ ----------- ---------- ----------- ------------
Total liabilities...................... 275,638 429,769 218,583 439,612 1,806,793 1,069,565
----------- ------------ ----------- ---------- ----------- -----------
Net Assets.................................... $24,150,777 $11,145,498 $12,832,457 $5,203,878 $11,487,099 $88,297,166
=========== ============ =========== ========== =========== ===========
Net assets consist of:
Paid in capital............................... $21,363,990 $10,133,829 $12,800,806 $5,523,667 $11,117,834 $67,470,155
Undistributed net investment income (loss) ... (100,276) (22,024) 3,962 (5,840) (5,863) (345,139)
Accumulated net realized gains (losses) on
investments, futures and foreign currencies 148,988 (794,514) (6,840) (146,062) (21,897) 3,892,020
Net unrealized appreciation (depreciation) on
investments, futures and foreign currencies 2,738,075 1,828,207 34,529 (167,887) 397,025 17,280,130
----------- ------------ ----------- ---------- ----------- -----------
Total net assets........................ $24,150,777 $ 11,145,498 $12,832,457 $5,203,878 $11,487,099 88,297,166
=========== ============ =========== ========== =========== ===========
Class "A" Shares
Capital shares outstanding.................... 1,084,780 852,246 462,580 204,321 521,638 10,545,990
Net assets.................................... $15,601,121 $9,052,104 $4,634,904 $1,912,797 $5,425,262 $82,988,843
Net asset value per share..................... $14.38 $10.62 $10.02 $9.36 $10.40 $7.87
=========== ============ =========== ========== =========== ===========
Offering price per share (net asset value
divided by 94.25%).......................... $15.26 $11.27 $10.63 $9.93 $11.03 $8.35
=========== ============ =========== ========== =========== ===========
Class "B" Shares
Capital shares outstanding.................... 586,763 185,496 446,626 176,924 415,383 722,105
Net assets.................................... $8,309,510 $1,938,491 $4,464,644 $1,654,723 $4,314,854 $ 5,308,021
Net asset value per share .................... $14.16 $10.45 $10.00 $9.35 $10.39 $7.35
=========== ============ =========== ========== =========== ===========
Class "C" Shares
Capital shares outstanding.................... 16,714 14,600 372,722 174,847 167,930 38
Net assets.................................... $240,146 $154,903 $3,732,909 $1,636,358 $1,746,983 $302
Net asset value per share .................... $14.37 $10.61 $10.02 $9.36 $10.40 $7.86
=========== ============ ============ ========== =========== ===========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
53
<PAGE> 55
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
------------------------------------------------------
SECURITY ASSET SOCIAL
GROWTH AND EQUITY GLOBAL ALLOCATION AWARENESS
INCOME FUND SERIES SERIES SERIES SERIES
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends ................................................ $ 956,437 $ 5,263,757 $ 229,234 $ 32,497 $ 75,746
Interest ................................................. 354,751 1,537,504 68,084 43,647 23,891
---------- ------------ ----------- --------- -----------
1,311,188 6,801,261 297,318 76,144 99,637
Less foreign tax expense ............................... -- -- (24,477) (1,339) --
---------- ------------ ----------- --------- -----------
Total investment income ................................ 1,311,188 6,801,261 272,841 74,805 99,637
Expenses:
Management fees .......................................... 540,818 5,263,809 372,506 35,243 79,329
Custodian fees ........................................... -- -- -- 1,771 1,209
Transfer/maintenance fees ................................ -- -- -- 5,779 12,763
Administration fees ...................................... -- -- -- 31,586 7,219
Directors' fees .......................................... -- -- -- 44 83
Professional fees ........................................ -- -- -- 5,210 5,940
Reports to shareholders .................................. -- -- -- 219 317
Registration fees ........................................ -- -- -- 8,806 10,721
Other expenses ........................................... -- -- -- -- --
12b-1 distribution plan fees ............................. 48,363 712,067 74,909 17,686 32,405
---------- ------------ ----------- --------- -----------
Total expenses ................................... 589,181 5,975,876 447,415 106,344 149,986
Less reimbursement of expenses ......................... -- -- -- (19,265) --
---------- ------------ ----------- --------- -----------
Net expenses ........................................... 589,181 5,975,876 447,415 87,079 149,986
---------- ------------ ----------- --------- -----------
Net investment income (loss) ........................... 722,007 825,385 (174,574) (12,274) (50,349)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments .............................................. 2,779,254 15,171,439 1,944,581 28,561 618,513
Foreign currency transactions ............................ -- -- (311,287) (27) --
---------- ------------ ----------- --------- -----------
Net realized gain ...................................... 2,779,254 15,171,439 1,633,294 28,534 618,513
Unrealized appreciation (depreciation) during the period on:
Investments .............................................. 3,795,928 182,749,938 5,359,406 907,894 3,056,912
Translation of assets and liabilities
in foreign currencies .................................. -- -- (71,871) (90) --
---------- ------------ ----------- --------- -----------
Net unrealized appreciation .............................. 3,795,928 182,749,938 5,287,535 907,804 3,056,912
---------- ------------ ----------- --------- -----------
Net gain ............................................... 6,575,182 197,921,377 6,920,829 936,338 3,675,425
---------- ------------ ----------- --------- -----------
Net increase in net assets
resulting from operations .......................... $7,297,189 $198,746,762 $ 6,746,255 $ 924,064 $ 3,625,076
========== ============ =========== ========= ============
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
54
<PAGE> 56
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1999,
EXCEPT AS NOTED. (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
------------------------------------------------------------------
VALUE SMALL COMPANY ENHANCED INTERNATIONAL SELECT 25 SECURITY
SERIES SERIES INDEX SERIES* SERIES* SERIES* ULTRA FUND
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends ...................................... $ 84,142 $ 628 $ 23,569 $ 13,483 $ 4,224 $ 175,868
Interest ....................................... 6,460 19,590 11,414 4,884 7,792 53,140
----------- ----------- ----------- ----------- ----------- -----------
90,602 20,218 34,983 18,367 12,016 229,008
Less foreign tax expense ..................... -- -- -- (1,968) -- --
----------- ----------- ----------- ----------- ----------- -----------
Total investment income ...................... 90,602 20,218 34,983 16,399 12,016 229,008
Expenses:
Management fees ................................ 108,731 37,793 12,987 8,601 7,331 537,685
Custodian fees ................................. 2,077 8,109 1,192 3,178 397 --
Transfer/maintenance fees ...................... 16,404 4,299 123 75 186 --
Administration fees ............................ 9,786 3,401 1,558 352 880 --
Directors' fees ................................ 97 43 39 39 40 --
Professional fees .............................. 3,517 1,745 636 5,636 636 --
Reports to shareholders ........................ 297 134 16 16 16 --
Registration fees .............................. 10,149 15,937 1,911 2,118 2,153 --
Other expenses ................................. 665 -- 6,981 3,203 -- --
12b-1 distribution plan fees ................... 39,155 8,574 5,578 2,544 6,240 36,462
----------- ----------- ----------- ----------- ----------- -----------
Total expenses ......................... 190,878 80,035 31,021 25,762 17,879 574,147
Less reimbursement of expenses ............... -- (37,793) -- (3,523) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net expenses .................................. 190,878 42,242 31,021 22,239 17,879 574,147
----------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss) .................. (100,276) (22,024) 3,962 (5,840) (5,863) (345,139)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments .................................... 212,794 (152,163) (17,280) (146,970) (21,897) 3,908,397
Futures contracts .............................. -- -- 10,440 -- -- 175,955
Foreign currency transactions .................. -- -- -- 908 -- --
----------- ----------- ----------- ----------- ----------- -----------
Net realized gain (loss) ..................... 212,794 (152,163) (6,840) (146,062) (21,897) 4,084,352
Unrealized appreciation (depreciation) during
the period on:
Investments .................................... 3,558,335 1,690,010 79,033 (166,578) 397,025 18,473,101
Futures contracts .............................. -- -- (44,504) -- -- --
Translation of assets and liabilities in
foreign currencies ........................... -- -- -- (1,309) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation) ............................ 3,558,335 1,690,010 34,529 (167,887) 397,025 18,473,101
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) .............................. 3,771,129 1,537,847 27,689 (313,949) 375,128 22,557,453
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations ................ $ 3,670,853 $ 1,515,823 $ 31,651 $ (319,789) $ 369,265 $22,212,314
=========== =========== =========== =========== =========== ============
</TABLE>
*Period January 29, 1999 (inception) through March 31, 1999.
See accompanying notes.
- --------------------------------------------------------------------------------
55
<PAGE> 57
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
---------------------------------------------------------------
SECURITY ASSET SOCIAL
GROWTH AND EQUITY GLOBAL ALLOCATION AWARENESS
INCOME FUND SERIES SERIES SERIES SERIES
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ................ $ 722,007 $ 825,385 $ (174,574) $ (12,274) $ (50,349)
Net realized gain ........................... 2,779,254 15,171,439 1,633,294 28,534 618,513
Unrealized appreciation
during the period ..................... 3,795,928 182,749,938 5,287,535 907,804 3,056,912
------------ --------------- ------------ ---------- ------------
Net increase in net assets
resulting from operations ............... 7,297,189 198,746,762 6,746,255 924,064 3,625,076
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................... (366,972) (3,097,459) (79,950) (47,225) --
Class B ................................... (38,490) -- -- (14,003) --
Class C ................................... -- -- -- -- --
Net realized gain
Class A ................................... (12,948,224) (60,267,679) (1,515,715) (224,997) (154,864)
Class B ................................... (1,659,505) (10,060,514) (1,024,588) (227,702) (112,402)
Class C ................................... -- -- -- -- --
------------ --------------- ------------ ---------- ------------
Total distributions to shareholders ..... (15,013,191) (73,425,652) (2,620,253) (513,927) (267,266)
Net increase
from capital share transactions ... 6,553,558 98,418,498 6,435,911 184,926 1,968,043
------------ --------------- ------------ ---------- ------------
Total increase (decrease) in net assets . (1,162,444) 223,739,608 10,561,913 595,063 5,325,853
NET ASSETS:
Beginning of period ......................... 85,628,124 886,584,557 31,559,946 6,598,485 12,863,820
------------ --------------- ------------ ---------- ------------
End of period ............................... $ 84,465,680 $ 1,110,324,165 $ 42,121,859 $7,193,548 $ 18,189,673
============ =============== ============ ========== ============
Undistributed net investment income (loss) at
end of period ............................. $ 476,921 $ 139,922 $ (377,268) $ (12,485) $ (50,349)
============ =============== ============ ========== ============
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
56
<PAGE> 58
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1999,
EXCEPT AS NOTED. (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
------------------------------------------------------------------
VALUE SMALL COMPANY ENHANCED INTERNATIONAL SELECT 25 SECURITY
SERIES SERIES INDEX SERIES* SERIES* SERIES* ULTRA FUND
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ................... $ (100,276) $ (22,024) $ 3,962 $ (5,840) $ (5,863) $ (345,139)
Net realized gain (loss) ....................... 212,794 (152,163) (6,840) (146,062) (21,897) 4,084,352
Unrealized appreciation (depreciation)
during the period ........................ 3,558,335 1,690,010 34,529 (167,887) 397,025 18,473,101
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations .................. 3,670,853 1,515,823 31,651 (319,789) 369,265 22,212,314
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ...................................... -- -- -- -- -- --
Class B ...................................... -- -- -- -- -- --
Class C ...................................... -- -- -- -- -- --
Net realized gain
Class A ...................................... (55,560) -- -- -- -- (17,135,874)
Class B ...................................... (30,703) -- -- -- -- (1,984,512)
Class C ...................................... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total distributions to shareholders ........ (86,263) -- -- -- -- (19,120,386)
Net increase
from capital share transactions ............ 3,050,605 5,448,718 12,800,806 5,523,667 11,117,834 12,040,717
----------- ----------- ----------- ----------- ----------- -----------
Total increase in net assets ............... 6,635,195 6,964,541 12,832,457 5,203,878 11,487,099 15,132,645
NET ASSETS:
Beginning of period ............................ 17,515,582 4,180,957 -- -- -- 73,164,521
----------- ----------- ----------- ----------- ----------- -----------
End of period .................................. $24,150,777 $11,145,498 $12,832,457 $ 5,203,878 $11,487,099 $88,297,166
=========== =========== =========== =========== =========== ============
Undistributed net investment income (loss) at
end of period ................................ $ (100,276) $ (22,024) $ 3,962 $ (5,840) $ (5,863) $ (345,139)
=========== =========== =========== =========== =========== ============
</TABLE>
*Period January 29, 1999 (inception) through March 31, 1999.
See accompanying notes.
- --------------------------------------------------------------------------------
57
<PAGE> 59
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
-----------------------------------------------------------
SECURITY ASSET
GROWTH AND EQUITY GLOBAL ALLOCATION
INCOME SERIES SERIES SERIES
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ................ $ 1,364,952 $ 2,491,166 $ (71,930) $ 13,322
Net realized gain ........................... 16,026,155 74,934,557 2,523,325 521,545
Unrealized depreciation
during the period ..................... (25,050,350) (19,967,302) (5,350,588) (1,088,773)
------------ ------------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations ............... (7,659,243) 57,458,421 (2,899,193) (553,906)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................... (1,262,953) (2,345,453) (149,975) (58,957)
Class B ................................... (37,978) -- -- (28,111)
Net realized gain
Class A ................................... (20,855,139) (64,378,392) (1,839,513) (224,701)
Class B ................................... (1,779,733) (7,895,986) (1,085,880) (230,756)
------------ ------------- ------------ -----------
Total distributions to shareholders ..... (23,935,803) (74,619,831) (3,075,368) (542,525)
Net increase (decrease)
from capital share transactions ......... 19,234,742 56,889,728 280,008 (62,464)
------------ ------------- ------------ -----------
Total increase (decrease) in net assets . (12,360,304) 39,728,318 (5,694,553) (1,158,895)
NET ASSETS:
Beginning of period ......................... 97,988,428 846,856,239 37,254,499 7,757,380
------------ ------------- ------------ -----------
End of period ............................... $ 85,628,124 $ 886,584,557 $ 31,559,946 $ 6,598,485
============ ============= ============ ===========
Undistributed net investment income (loss) at
end of period ............................. $ 160,376 $ 2,411,996 $ (122,744) $ 61,017
============ ============= ============ ===========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
58
<PAGE> 60
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1998, EXCEPT AS NOTED
SECURITY EQUITY FUND
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
--------------------------------------------
SOCIAL SMALL SECURITY
AWARENESS VALUE COMPANY ULTRA
SERIES SERIES SERIES* FUND
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment loss ....................... $ (43,962) $ (78,230) $ (26,448) $ (616,610)
Net realized gain (loss) .................. 478,803 254,031 (642,351) 21,894,442
Unrealized appreciation (depreciation)
during the period ................... 245,900 (1,677,229) 138,197 (31,503,654)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations .............. 680,741 (1,501,428) (530,602) (10,225,822)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................. (13,294) (23,776) (1,066) --
Class B ................................. -- -- -- --
Net realized gain
Class A ................................. -- (148,467) -- (4,076,926)
Class B ................................. -- (99,378) -- (303,165)
------------ ------------ ----------- ------------
Total distributions to shareholders ..... (13,294) (271,621) (1,066) (4,380,091)
Net increase (decrease)
from capital share transactions ....... 2,346,429 11,086,040 4,712,625 (2,696,837)
------------ ------------ ----------- ------------
Total increase (decrease) in net assets 3,013,876 9,312,991 4,180,957 (17,302,750)
NET ASSETS:
Beginning of period ....................... 9,849,944 8,202,591 -- 90,467,271
------------ ------------ ----------- ------------
End of period ............................. $ 12,863,820 $ 17,515,582 $ 4,180,957 $ 73,164,521
============ ============ =========== ============
Undistributed net investment income at
end of period ........................... $-- $-- $-- $--
============ ============ =========== ============
</TABLE>
*Period October 15, 1997 (inception) through September 30, 1998.
See accompanying notes.
- --------------------------------------------------------------------------------
59
<PAGE> 61
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY GROWTH AND INCOME FUND (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 7.68 $ 11.14 $ 9.05 $ 7.93 $ 6.96 $ 7.84
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ..................... 0.06 0.13 0.15 0.18 0.16 0.13
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 0.60 (0.87) 2.81 1.37 1.18 (0.71)
--------- --------- --------- --------- --------- ---------
Total from Investment Operations ................. 0.66 (0.74) 2.96 1.55 1.34 (0.58)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... (0.04) (0.13) (0.16) (0.16) (0.16) (0.13)
Distributions (from Capital Gains) ............... (1.34) (2.59) (0.71) (0.27) (0.21) (0.17)
--------- --------- --------- --------- --------- ---------
Total Distributions ........................... (1.38) (2.72) (0.87) (0.43) (0.37) (0.30)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE END OF PERIOD .................... $ 6.96 $ 7.68 $ 11.14 $ 9.05 $ 7.93 $ 6.96
========= ========= ========= ========= ========= =========
TOTAL RETURN (a) ................................. 8.72% (7.95%) 35.31% 20.31% 20.25% (7.6%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 75,155 $ 76,371 $ 91,252 $ 73,273 $ 67,430 $ 65,328
Ratio of Expenses to Average Net Assets .......... 1.23% 1.21% 1.24% 1.29% 1.31% 1.28%
Ratio of Net Investment Income (Loss) to Average
Net Assets ..................................... 1.75% 1.49% 1.53% 2.09% 2.21% 1.70%
Portfolio Turnover Rate .......................... 98% 144% 124% 69% 130% 163%
SECURITY GROWTH AND INCOME FUND (CLASS B)
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 7.54 $ 10.99 $ 8.94 $ 7.85 $ 6.90 $ 7.83
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ............................ 0.03 0.05 0.05 0.09 0.08 0.05
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 0.58 (0.88) 2.77 1.35 1.18 (0.69)
--------- --------- --------- --------- --------- -----------
Total from Investment Operations ................. 0.61 (0.83) 2.82 1.44 1.26 (0.64)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... (0.03) (0.03) (0.06) (0.08) (0.09) (0.12)
Distributions (from Capital Gains) ............... (1.34) (2.59) (0.71) (0.27) (0.22) (0.17)
--------- --------- --------- --------- --------- -----------
Total Distributions ........................... (1.37) (2.62) (0.77) (0.35) (0.31) (0.29)
--------- --------- --------- --------- --------- -----------
NET ASSET VALUE END OF PERIOD .................... $ 6.78 $ 7.54 $ 10.99 $ 8.94 $ 7.85 $ 6.90
========= ========= ========= ========= ========= ===========
TOTAL RETURN (a) ................................. 8.21% (8.95%) 34.01% 19.01% 19.07% (8.0%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 9,310 $ 9,257 $ 6,737 $ 2,247 $ 1,130 $ 668
Ratio of Expenses to Average Net Assets .......... 2.23% 2.21% 2.24% 2.29% 2.31% 2.27%
Ratio of Net Income (Loss) to Average
Net Assets ..................................... 0.75% 0.59% 0.53% 1.09% 1.21% 1.03%
Portfolio Turnover Rate .......................... 98% 144% 124% 69% 130% 178%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
60
<PAGE> 62
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY GROWTH AND INCOME FUND (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 6.87
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... 0.02
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.08
-------
Total from Investment Operations ............... 0.10
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-------
Total Distributions ......................... --
-------
NET ASSET VALUE END OF PERIOD .................. $ 6.97
=======
TOTAL RETURN (a) ............................... 1.46%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 1
Ratio of Expenses to Average Net Assets ........ 2.23%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... 1.10%
Portfolio Turnover Rate ........................ 135%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
61
<PAGE> 63
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - EQUITY SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)
--------- ------- -------- -------- -------- --------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 8.86 $ 9.09 $ 7.54 $ 6.55 $ 5.54 $ 6.73
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ..................... 0.01 0.04 0.04 0.05 0.04 0.05
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 1.93 0.56 2.20 1.48 1.38 0.09
----------- ----------- ----------- ----------- ----------- -----------
Total from Investment Operations ................. 1.94 0.60 2.24 1.53 1.42 0.14
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... (0.04) (0.03) (0.04) (0.06) -- (0.12)
Distributions (from Capital Gains) ............... (0.68) (0.80) (0.65) (0.48) (0.41) (1.21)
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions ........................... (0.72) (0.83) (0.69) (0.54) (0.41) (1.33)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE END OF PERIOD .................... $ 10.08 $ 8.86 $ 9.09 $ 7.54 $ 6.55 $ 5.54
=========== =========== =========== =========== =========== ===========
TOTAL RETURN (a) ................................. 22.11% 7.38% 32.08% 24.90% 27.77% 1.95%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 949,378 $ 773,606 $ 757,520 $ 575,680 $ 440,339 $ 358,237
Ratio of Expenses to Average Net Assets .......... 1.02% 1.02% 1.03% 1.04% 1.05% 1.06%
Ratio of Net Investment Income (Loss) to Average
Net Assets ..................................... 0.30% 0.39% 0.46% 0.75% 0.87% 0.86%
Portfolio Turnover Rate .......................... 30% 47% 66% 64% 95% 79%
<CAPTION>
SECURITY EQUITY FUND - EQUITY SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)
----------- ----------- ----------- ----------- ----------- -----------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 8.52 $ 8.82 $ 7.36 $ 6.43 $ 5.49 $ 6.81
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ..................... (0.03) (0.05) (0.04) (0.02) (0.01) 0.01
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 1.83 0.55 2.15 1.45 1.36 --
----------- ----------- ----------- ----------- ----------- -----------
Total from Investment Operations ................. 1.80 0.50 2.11 1.43 1.35 0.01
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... -- -- -- (0.02) -- (0.12)
Distributions (from Capital Gains) ............... (0.68) (0.80) (0.65) (0.48) (0.41) (1.21)
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions ........................... (0.68) (0.80) (0.65) (0.50) (0.41) (1.33)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE END OF PERIOD .................... $ 9.64 $ 8.52 $ 8.82 $ 7.36 $ 6.43 $ 5.49
=========== =========== =========== =========== =========== ===========
TOTAL RETURN (a) ................................. 21.37% 6.38% 30.85% 23.57% 26.69% (0.15%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 160,113 $ 112,978 $ 89,336 $ 38,822 $ 19,288 $ 7,452
Ratio of Expenses to Average Net Assets .......... 2.02% 2.02% 2.03% 2.04% 2.05% 2.07%
Ratio of Net Investment Income (Loss) to Average
Net Assets ..................................... (0.71%) (0.61%) (0.54%) (0.25%) (0.13%) (0.01%)
Portfolio Turnover Rate .......................... 30% 47% 66% 64% 95% 80%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
62
<PAGE> 64
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - EQUITY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
<S> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $10.13
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.07)
------
Total from Investment Operations ............... (0.08)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
------
Total Distributions ......................... --
------
NET ASSET VALUE END OF PERIOD .................. $10.05
======
TOTAL RETURN (a) ............................... (0.69%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 834
Ratio of Expenses to Average Net Assets ........ 2.02%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.97%)
Portfolio Turnover Rate ........................ 35%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
63
<PAGE> 65
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)(c)
---------- -------- ------- -------- -------- ----------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 11.23 $ 13.56 $ 12.42 $ 10.94 $ 10.84 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ..................... (0.03) 0.02 0.01 0.01 (0.02) (0.03)
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 2.41 (1.19) 2.29 1.87 0.31 0.87
----------- ----------- ----------- ----------- ----------- -----------
Total from Investment Operations ................. 2.38 (1.17) 2.30 1.88 0.29 0.84
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... (0.05) (0.09) (0.38) (0.25) -- --
Distributions (from Capital Gains) ............... (0.91) (1.07) (0.78) (0.15) (0.19) --
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions ........................... (0.96) (1.16) (1.16) (0.40) (0.19) --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE END OF PERIOD .................... $ 12.65 $ 11.23 $ 13.56 $ 12.42 $ 10.94 $ 10.84
=========== =========== =========== =========== =========== ===========
TOTAL RETURN (a) ................................. 21.52% (8.47%) 20.22% 17.73% 2.80% 8.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 24,800 $ 18,941 $ 24,193 $ 19,644 $ 16,261 $ 20,128
Ratio of Expenses to Average Net Assets .......... 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets ..................................... (0.54%) 0.15% 0.07% 0.07% (0.17%) (0.01%)
Portfolio Turnover Rate .......................... 215% 122% 132% 142% 141% 73%
<CAPTION>
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)(c)
----------- ----------- ----------- ----------- ----------- ------------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 10.89 $ 13.22 $ 12.18 $ 10.74 $ 10.75 $ 9.96
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ..................... (0.09) (0.10) (0.11) (0.10) (0.12) (0.12)
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 2.34 (1.16) 2.24 1.84 0.30 0.91
----------- ----------- ----------- ----------- ----------- -----------
Total from Investment Operations ................. 2.25 (1.26) 2.13 1.74 0.18 0.79
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... -- -- (0.31) (0.14) -- --
Distributions (from Capital Gains) ............... (0.91) (1.07) (0.78) (0.16) (0.19) --
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions ........................... (0.91) (1.07) (1.09) (0.30) (0.19) --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE END OF PERIOD .................... $ 12.23 $ 10.89 $ 13.22 $ 12.18 $ 10.74 $ 10.75
=========== =========== =========== =========== =========== ===========
TOTAL RETURN (a) ................................. 17.31% (9.43%) 19.01% 16.57% 1.79% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 17,317 $ 12,619 $ 13,061 $ 7,285 $ 5,433 $ 3,960
Ratio of Expenses to Average Net Assets .......... 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets ..................................... (1.53%) (0.85%) (0.93%) (0.93%) (1.17%) (0.01%)
Portfolio Turnover Rate .......................... 215% 122% 132% 142% 141% 73%
</TABLE>
- --------------------------------------------------------------------------------
64
<PAGE> 66
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 12.68
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.02)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.02)
-------
Total from Investment Operations ............... (0.04)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-------
Total Distributions ......................... --
-------
NET ASSET VALUE END OF PERIOD .................. $ 12.64
=======
TOTAL RETURN (a) ............................... (0.32%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 5
Ratio of Expenses to Average Net Assets ........ 3.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (3.91%)
Portfolio Turnover Rate ........................ 652%
</TABLE>
- --------------------------------------------------------------------------------
65
<PAGE> 67
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
----------------------------------------------------------------------------
1999(f)(m) 1998(e)(f) 1997(e)(f)(i) 1996(e)(f) 1995(d)(e)(f)
--------- -------- ------------ ---------- ------------
PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD ........... $ 10.73 $ 12.58 $ 11.06 $ 10.54 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) .................. 0.01 0.08 0.17 0.25 0.04
Net Gain (Loss) on Securities
(realized and unrealized) .................... 1.53 (0.98) 1.86 0.77 0.50
------------ --------------- ------------ ----------- ------------
Total from Investment Operations .............. 1.54 (0.90) 2.03 1.02 0.54
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........ (0.16) (0.20) (0.26) (0.33) --
Distributions (from Capital Gains) ............ (0.75) (0.75) (0.25) (0.17) --
------------ --------------- ------------ ----------- ------------
Total Distributions ........................ (0.91) (0.95) (0.51) (0.50) --
------------ --------------- ------------ ----------- ------------
NET ASSET VALUE END OF PERIOD ................. $ 11.36 $ 10.73 $ 12.58 $ 11.06 $ 10.54
============ =============== ============ =========== ============
TOTAL RETURN (a) .............................. 14.51% (7.19%) 19.00% 10.01% 5.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) .......... $ 3,537 $ 3,294 $ 3,906 $ 2,449 $ 1,906
Ratio of Expenses to Average Net Assets ....... 2.00% 2.00% 1.68% 2.00% 2.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets .................................. 0.12% 0.65% 1.52% 2.32% 1.33%
Portfolio Turnover Rate ....................... 46% 45% 79% 75% 129%
<CAPTION>
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------------------
1999(f)(m) 1998(e)(f) 1997(e)(f)(i) 1996(e)(f) 1995(d)(e)(f)
------------ --------------- ------------ ----------- ------------
PER SHARE DATA
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD ........... $ 10.62 $ 12.45 $ 10.97 $ 10.50 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) .................. (0.05) (0.03) 0.07 0.14 0.01
Net Gain (Loss) on Securities
(realized and unrealized) .................... 1.51 (0.96) 1.84 0.77 0.49
------------ --------------- ------------ ----------- ------------
Total from Investment Operations .............. 1.46 (0.99) 1.91 0.91 0.50
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........ (0.04) (0.09) (0.18) (0.27) --
Distributions (from Capital Gains) ............ (0.75) (0.75) (0.25) (0.17) --
------------ --------------- ------------ ----------- ------------
Total Distributions ........................ (0.79) (0.84) (0.43) (0.44) --
------------ --------------- ------------ ----------- ------------
NET ASSET VALUE END OF PERIOD ................. $ 11.29 $ 10.62 $ 12.45 $ 10.97 $ 10.50
============ =============== ============ =========== ============
TOTAL RETURN (a) .............................. 13.96% (7.99%) 17.95% 8.97% 5.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) .......... $ 3,656 $ 3,304 $ 3,851 $ 2,781 $ 1,529
Ratio of Expenses to Average Net Assets ....... 2.94% 2.94% 2.58% 3.00% 3.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets .................................. (0.81%) (0.29%) 0.61% 1.32% 0.31%
Portfolio Turnover Rate ....................... 46% 45% 79% 75% 129%
</TABLE>
- --------------------------------------------------------------------------------
66
<PAGE> 68
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ASSET ALLOCATION SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $11.48
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... --
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.13)
------
Total from Investment Operations ............... (0.13)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
------
Total Distributions ......................... --
------
NET ASSET VALUE END OF PERIOD .................. $11.35
======
TOTAL RETURN (a) ............................... (1.13%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 0
Ratio of Expenses to Average Net Assets ........ 2.94%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... --
Portfolio Turnover Rate ........................ 47%
</TABLE>
- --------------------------------------------------------------------------------
67
<PAGE> 69
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
----------------------------------------------
1999(f)(m) 1998(e)(f) 1997(e)(f)(g)
---------- ------------ ------------
PER SHARE DATA
<S> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 19.37 $ 17.99 $ 15.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.02) -- 0.08
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 5.21 1.42 2.91
---------- ---------- ----------
Total from Investment Operations ............... 5.19 1.42 2.99
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... -- (0.04) --
Distributions (from Capital Gains) ............. (0.36) -- --
---------- ---------- ----------
Total Distributions ......................... (0.36) (0.04) --
---------- ---------- ----------
NET ASSET VALUE END OF PERIOD .................. $ 24.20 $ 19.37 $ 17.99
========== ========== ==========
TOTAL RETURN (a) ............................... 26.91% 7.89% 19.93%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 11,021 $ 7,619 $ 6,209
Ratio of Expenses to Average Net Assets ........ 1.40% 1.22% 0.67%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.16%) -- 0.57%
Portfolio Turnover Rate ........................ 35% 41% 38%
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------
1999(f)(m) 1998(e)(f) 1997(e)(f)(g)
---------- ---------- ------------
PER SHARE DATA
<S> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 19.01 $ 17.81 $ 15.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.15) (0.19) (0.08)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 5.12 1.39 2.89
---------- ---------- ----------
Total from Investment Operations ............... 4.97 1.20 2.81
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... -- -- --
Distributions (from Capital Gains) ............. (0.36) -- --
---------- ---------- ----------
Total Distributions ......................... (0.36) -- --
---------- ---------- ----------
NET ASSET VALUE END OF PERIOD .................. $ 23.62 $ 19.01 $ 17.81
========== ========== ==========
TOTAL RETURN (a) ............................... 26.25% 6.74% 18.73%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 7,054 $ 5,245 $ 3,641
Ratio of Expenses to Average Net Assets ........ 2.56% 2.20% 1.84%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (1.32%) (0.98%) (0.60%)
Portfolio Turnover Rate ........................ 35% 41% 38%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
68
<PAGE> 70
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
<S> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 24.47
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.03)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.28)
-------
Total from Investment Operations ............... (0.31)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-------
Total Distributions ......................... --
-------
NET ASSET VALUE END OF PERIOD .................. $ 24.16
=======
TOTAL RETURN (a) ............................... (1.27%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 115
Ratio of Expenses to Average Net Assets ........ 2.25%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (1.07%)
Portfolio Turnover Rate ........................ 24%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
69
<PAGE> 71
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - VALUE SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------
1999(f)(m) 1998(e)(f) 1997(e)(f)(g)
------------ ------------ ------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 12.07 $ 12.95 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.04) (0.02) 0.05
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 2.40 (0.53) 2.90
---------- ---------- ----------
Total from Investment Operations ............... 2.36 (0.55) 2.95
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... -- (0.05) --
Distributions (from Capital Gains) ............. (0.05) (0.28) --
---------- ---------- ----------
Total Distributions ......................... (0.05) (0.33) --
---------- ---------- ----------
NET ASSET VALUE END OF PERIOD .................. $ 14.38 $ 12.07 $ 12.95
========== ========== ==========
TOTAL RETURN (a) ............................... 19.59% (4.31%) 29.50%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 15,601 $ 10,901 $ 4,631
Ratio of Expenses to Average Net Assets ........ 1.39% 1.27% 1.10%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.56%) (0.13%) 1.43%
Portfolio Turnover Rate ........................ 86% 98% 35%
SECURITY EQUITY FUND - VALUE SERIES (CLASS B)
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------
1999(f)(m) 1998(e)(f) 1997(e)(f)(g)
---------- ---------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 11.94 $ 12.91 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.11) (0.15) 0.01
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 2.38 (0.54) 2.90
---------- ---------- ----------
Total from Investment Operations ............... 2.27 (0.69) 2.91
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... -- -- --
Distributions (from Capital Gains) ............. (0.05) (0.28) --
---------- ---------- ----------
Total Distributions ......................... (0.05) (0.28) --
---------- ---------- ----------
NET ASSET VALUE END OF PERIOD .................. $ 14.16 $ 11.94 $ 12.91
========== ========== ==========
TOTAL RETURN (a) ............................... 19.05% (5.38%) 29.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 8,310 $ 6,615 $ 3,572
Ratio of Expenses to Average Net Assets ........ 2.40% 2.33% 2.26%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (1.57%) (1.19%) 0.27%
Portfolio Turnover Rate ........................ 86% 98% 35%
</TABLE>
- --------------------------------------------------------------------------------
70
<PAGE> 72
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - VALUE SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 14.54
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.16)
-------
Total from Investment Operations ............... (0.17)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-------
Total Distributions ......................... --
-------
NET ASSET VALUE END OF PERIOD .................. $ 14.37
=======
TOTAL RETURN (a) ............................... (1.17%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 240
Ratio of Expenses to Average Net Assets ........ 2.28%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (1.15%)
Portfolio Turnover Rate ........................ 209%
</TABLE>
- --------------------------------------------------------------------------------
71
<PAGE> 73
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(f)(m) 1998(e)(f)(j)
------------ ------------
PER SHARE DATA
<S> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 8.70 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.01) (0.03)
Net Gain (Loss) on Securities
(realized and unrealized) .................. 1.93 (1.26)
----------- -----------
Total from Investment Operations ............ 1.92 (1.29)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ...... -- (0.01)
Distributions (from Capital Gains) .......... -- --
----------- -----------
Total Distributions ...................... -- (0.01)
----------- -----------
NET ASSET VALUE END OF PERIOD ............... $ 10.62 $ 8.70
=========== ===========
TOTAL RETURN (a) ............................ 22.07% (12.95%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $ 9,052 $ 2,677
Ratio of Expenses to Average Net Assets ..... 0.74% 1.39%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................ (0.21%) (0.35%)
Portfolio Turnover Rate ..................... 401% 366%
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CLASS B)
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(f)(m) 1998(e)(f)(j)
------------ -----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 8.63 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.09) (0.13)
Net Gain (Loss) on Securities
(realized and unrealized) .................. 1.91 (1.24)
----------- -----------
Total from Investment Operations ............ 1.82 (1.37)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ...... -- --
Distributions (from Capital Gains) .......... -- --
----------- -----------
Total Distributions ...................... -- --
----------- -----------
NET ASSET VALUE END OF PERIOD ............... $ 10.45 $ 8.63
=========== ===========
TOTAL RETURN (a) ............................ 21.09% (13.70%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $ 1,938 $ 1,504
Ratio of Expenses to Average Net Assets ..... 2.41% 2.38%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................ (1.86%) (1.34%)
Portfolio Turnover Rate ..................... 401% 366%
</TABLE>
- --------------------------------------------------------------------------------
72
<PAGE> 74
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
-----------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $11.16
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.03)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.52)
------
Total from Investment Operations ............... (0.55)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
------
Total Distributions ......................... --
------
NET ASSET VALUE END OF PERIOD .................. $10.61
======
TOTAL RETURN (a) ............................... (4.93%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 155
Ratio of Expenses to Average Net Assets ........ 1.47%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.85%)
Portfolio Turnover Rate ........................ 563%
</TABLE>
- --------------------------------------------------------------------------------
73
<PAGE> 75
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
<S> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... 0.01
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.01
-----------
Total from Investment Operations ............... 0.02
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 10.02
===========
TOTAL RETURN (a) ............................... 0.20%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 4,635
Ratio of Expenses to Average Net Assets ........ 1.35%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... 0.67%
Portfolio Turnover Rate ........................ 115%
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... --
Net Gain (Loss) on Securities
(realized and unrealized) ..................... --
-----------
Total from Investment Operations ............... --
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 10.00
===========
TOTAL RETURN (a) ............................... 0.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 4,465
Ratio of Expenses to Average Net Assets ........ 2.14%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.13%)
Portfolio Turnover Rate ........................ 115%
</TABLE>
- --------------------------------------------------------------------------------
74
<PAGE> 76
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... --
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.02
-----------
Total from Investment Operations ............... 0.02
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 10.02
===========
TOTAL RETURN (a) ............................... 0.20%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 3,733
Ratio of Expenses to Average Net Assets ........ 1.95%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... 0.08%
Portfolio Turnover Rate ........................ 115%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
75
<PAGE> 77
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - INTERNATIONAL SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
-----------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) (0.63)
-------
Total from Investment Operations (0.64)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) --
Distributions (from Capital Gains) --
-------
Total Distributions --
-------
NET ASSET VALUE END OF PERIOD $9.36
=======
TOTAL RETURN (a) (6.40%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) $1,913
Ratio of Expenses to Average Net Assets 2.48%
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.41%)
Portfolio Turnover Rate 125%
SELECT EQUITY FUND - INTERNATIONAL SERIES (CLASS B)
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.02)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.63)
-----------
Total from Investment Operations ............... (0.65)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 9.35
===========
TOTAL RETURN (a) ............................... (6.50%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 1,655
Ratio of Expenses to Average Net Assets ........ 3.25%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (1.15%)
Portfolio Turnover Rate ........................ 125%
</TABLE>
- --------------------------------------------------------------------------------
76
<PAGE> 78
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - INTERNATIONAL SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
----------
<S> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.63)
-----------
Total from Investment Operations ............... (0.64)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 9.36
===========
TOTAL RETURN (a) ............................... (6.40%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 1,636
Ratio of Expenses to Average Net Assets ........ 2.83%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.72%)
Portfolio Turnover Rate ........................ 125%
</TABLE>
- --------------------------------------------------------------------------------
77
<PAGE> 79
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - SELECT 25 SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
----------
<S> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... --
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.40
-----------
Total from Investment Operations ............... 0.40
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 10.40
===========
TOTAL RETURN (a) ............................... 4.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 5,425
Ratio of Expenses to Average Net Assets ........ 1.48%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.24%)
Portfolio Turnover Rate ........................ 28%
SELECT EQUITY FUND - SELECT 25 SERIES (CLASS B)
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
----------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.40
-----------
Total from Investment Operations ............... 0.39
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 10.39
===========
TOTAL RETURN (a) ............................... 3.90%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 4,315
Ratio of Expenses to Average Net Assets ........ 2.26%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (1.03%)
Portfolio Turnover Rate ........................ 28%
</TABLE>
- --------------------------------------------------------------------------------
78
<PAGE> 80
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - SELECT 25 SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
----------
PER SHARE DATA
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.41
-----------
Total from Investment Operations ............... 0.40
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 10.40
===========
TOTAL RETURN (a) ............................... 4.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 1,747
Ratio of Expenses to Average Net Assets ........ 1.98%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.78%)
Portfolio Turnover Rate ........................ 28%
</TABLE>
- --------------------------------------------------------------------------------
79
<PAGE> 81
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SECURITY ULTRA FUND (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)
---------- ------- ------- ------- ------ ------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 7.65 $ 9.24 $ 8.25 $ 8.20 $ 6.82 $ 8.13
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (loss) ................... (0.03) (0.06) (0.08) (0.05) (0.02) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 2.16 (1.06) 1.65 1.10 1.54 (0.19)
----------- ----------- ----------- ----------- ----------- -----------
Total from Investment Operations ............... 2.13 (1.12) 1.57 1.05 1.52 (0.24)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... -- -- -- -- -- --
Distributions (from Capital Gains) ............. (1.91) (0.47) (0.58) (1.00) (0.14) (1.07)
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions ......................... (1.91) (0.47) (0.58) (1.00) (0.14) (1.07)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE END OF PERIOD .................. $ 7.87 $ 7.65 $ 9.24 $ 8.25 $ 8.20 $ 6.82
=========== =========== =========== =========== =========== ===========
TOTAL RETURN (a) ............................... 29.23% (12.45%) 20.57% 15.36% 22.69% (3.6%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 82,989 $ 67,554 $ 84,504 $ 74,230 $ 66,052 $ 60,695
Ratio of Expenses to Average Net Assets ........ 1.23% 1.23% 1.71% 1.31% 1.32% 1.33%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... (0.70%) (0.64%) (1.01%) (0.61%) (0.31%) (0.80%)
Portfolio Turnover Rate ........................ 66% 116% 68% 161% 180% 111%
<CAPTION>
SECURITY ULTRA FUND (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
1999(f)(m) 1998(f) 1997(f) 1996(f) 1995(f) 1994(b)
----------- ----------- ----------- ----------- ----------- -----------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD .............. $ 7.28 $ 8.90 $ 8.03 $ 8.11 $ 6.81 $ 8.30
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (loss) ..................... (0.07) (0.14) (0.15) (0.13) (0.09) (0.10)
Net Gain (Loss) on Securities
(realized and unrealized) ....................... 2.05 (1.01) 1.60 1.05 1.53 (0.32)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations ................. 1.98 (1.15) 1.45 0.92 1.44 (0.42)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ........... -- -- -- -- -- --
Distributions (from Capital Gains) ............... (1.91) (0.47) (0.58) (1.00) (0.14) (1.07)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions ........................... (1.91) (0.47) (0.58) (1.00) (0.14) (1.07)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE END OF PERIOD .................... $ 7.35 $ 7.28 $ 8.90 $ 8.03 $ 8.11 $ 6.81
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) ................................. 28.57% (13.30%) 19.58% 13.81% 21.53% (5.70%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ............. $ 5,308 $ 5,610 $ 5,964 $ 2,698 $ 5,428 $ 1,254
Ratio of Expenses to Average Net Assets .......... 2.22% 2.23% 2.71% 2.31% 2.32% 2.36%
Ratio of Net Investment Income (Loss) to Average
Net Assets ..................................... (1.72%) (1.64%) (2.01%) (1.61%) (1.31%) (1.76%)
Portfolio Turnover Rate .......................... 66% 116% 68% 161% 180% 110
</TABLE>
- --------------------------------------------------------------------------------
80
<PAGE> 82
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY ULTRA FUND (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(l)(m)
---------
<S> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 8.20
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... --
Net Gain (Loss) on Securities
(realized and unrealized) ..................... (0.34)
-----------
Total from Investment Operations ............... (0.34)
LESS DISTRIBUTIONS
Dividends (from Net Investment Income) ......... --
Distributions (from Capital Gains) ............. --
-----------
Total Distributions ......................... --
-----------
NET ASSET VALUE END OF PERIOD .................. $ 7.86
===========
TOTAL RETURN (a) ............................... (4.15%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 0
Ratio of Expenses to Average Net Assets ........ 2.22%
Ratio of Net Investment Income (Loss) to Average
Net Assets ................................... 0%
Portfolio Turnover Rate ........................ 102%
</TABLE>
(a) Total return information does not reflect deduction of any sales charges
imposed at the time of purchase for Class A shares or upon redemption for
Class B and C shares.
(b) Class "B" shares were initially capitalized on October 19, 1993. Percentage
amounts for the period, except total return, have been annualized. Per share
data has been calculated using the average month-end shares outstanding.
(c) Security Global Series was initially capitalized on October 1, 1993, with a
net asset value of $10 per share. Percentage amounts for the period have
been annualized, except for total return.
(d) Security Asset Allocation Series was initially capitalized on June 1, 1995,
with a net asset value of $10 per share. Percentage amounts for the period
have been annualized, except for total return. Per share data has been
calculated using average month-end shares outstanding.
(e) Fund expenses were reduced by the Investment Manager during the period and
expense ratios absent such reimbursement would have been as follows:
<TABLE>
<CAPTION>
1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C>
Asset Allocation Series Class A 3.6% 3.1% 2.4% 2.5% 2.5%
Class B 4.7% 3.9% 3.3% 3.4% 3.5%
Class C N/A N/A N/A N/A 3.5%
Social Awareness Series Class A N/A N/A 1.7% 1.5% N/A
Class B N/A N/A 2.8% 2.5% N/A
Value Series Class A N/A N/A 1.9% 1.5% N/A
Class B N/A N/A 2.8% 2.6% N/A
Small Company Series Class A N/A N/A N/A 2.4% 1.7%
Class B N/A N/A N/A 3.4% 3.4%
Class C N/A N/A N/A N/A 2.5%
International Series Class A N/A N/A N/A N/A 2.9%
Class B N/A N/A N/A N/A 3.7%
Class C N/A N/A N/A N/A 3.3%
</TABLE>
(f) Net investment income (loss) was computed using average shares outstanding
throughout the period.
(g) Security Social Awareness Series was initially capitalized on November 1,
1996, with a net asset value of $15 per share. Percentage amounts for the
period, except for total return, have been annualized.
(h) Security Value Series was initially capitalized on May 1, 1997, with a net
asset value of $10 per share. Percentage amounts for the period, except for
total return, have been annualized.
(i) Meridian Investment Management Corporation (Meridian) became the sub-advisor
of Asset Allocation Series effective August 1, 1997. Prior to August 1, 1997
SMC paid Templeton/Franklin Investment Services, Inc. and Meridian for
research services provided to Asset Allocation Series.
(j) Security Small Company Series was initially capitalized on October 15, 1997,
with a net asset value of $10 per share. Percentage amounts for the period,
except for total return, have been annualized.
(k) Security Enhanced Index Series, Security International Series and Security
Select 25 Series were initially capitalized on January 29, 1999, with a net
asset value of $10 per share. Percentage amounts for the period, except for
total return, have been annualized.
(l) Class "C" Shares were initially offered for sale on January 29, 1999.
Percentage amounts for the period, except total return, have been
annualized. Per share data has been calculated using the average month-end
shares outstanding.
(m) Unaudited figures for the six months ended March 31, 1999. Percentage
amounts for the period, except total return, have been annualized.
- --------------------------------------------------------------------------------
81
<PAGE> 83
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
MARCH 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES
Security Growth and Income, Equity and Ultra Funds (the Funds) are registered
under the Investment Company Act of 1940, as amended, as diversified open-end
management investment companies. The shares of Security Equity Fund are
currently issued in multiple Series, with each Series, in effect, representing a
separate fund. Class A shares are sold with a sales charge at the time of
purchase. Class A shares are not subject to a sales charge when they are
redeemed, except that purchases of Class A shares of $1 million or more sold
without a front-end sales charge are subject to a contingent deferred sales
charge if redeemed within one year of purchase. The Funds began offering an
additional class of shares ("B" shares) to the public on October 19, 1993. The
shares are offered without a front-end sales charge but incur additional
class-specific expenses. Redemptions of the shares within five years of
acquisition incur a contingent deferred sales charge. The Funds began offering
an additional class of shares ("C" shares) to the public on January 29, 1999.
The shares are offered without a front-end sales charge but incur additional
class-specific expenses. Redemptions of the shares within one year of
acquisition incur a contingent deferred sales charge. The following is a summary
of the significant accounting policies followed by the Funds in the preparation
of their financial statements.
A. SECURITY VALUATION - Securities listed or traded on a national securities
exchange are valued on the basis of the last sales price. If there are no sales
on a particular day, then the securities are valued at the last bid price. If a
security is traded on multiple exchanges, its value will be based on prices from
the principal exchange where it is traded. All other securities for which market
quotations are available are valued on the basis of the current bid price. If
there is no bid price or if the bid price is deemed to be unsatisfactory by the
Board of Directors or the Funds' investment manager, then the securities are
valued in good faith by such method as the Board of Directors determines will
reflect the fair market value. The Funds generally will value short-term debt
securities at prices based on market quotations for securities of similar type,
yield, quality and duration, except those securities purchased with 60 days or
less to maturity are valued on the basis of amortized cost which approximates
market value.
Generally, trading in foreign securities markets is substantially completed
each day at various times prior to the close of the New York Stock Exchange. The
values of foreign securities are determined as of the close of such foreign
markets or the close of the New York Stock Exchange, if earlier. All investments
quoted in foreign currency are valued in U.S. dollars on the basis of the
foreign currency exchange rates prevailing at the close of business. The Global
Series', Asset Allocation Series' and International Series' investments in
foreign securities may involve risks not present in domestic investments. Since
foreign securities may be denominated in a foreign currency and involve
settlement and pay interest or dividends in foreign currencies, changes in the
relationship of these foreign currencies to the U.S. dollar can significantly
affect the value of the investments and earnings of the Funds. Foreign
investments may also subject the Global Series, Asset Allocation Series and
International Series to foreign government exchange restrictions, expropriation,
taxation or other political, social or economic developments, all of which could
affect the market and/or credit risk of the investments.
B. FOREIGN CURRENCY TRANSACTIONS - The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange rates.
Purchases and sales of investment securities, dividend and interest income, and
certain expenses are translated at the rates of exchange prevailing on the
respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting
from changes in the foreign exchange rates on investments from the fluctuations
arising from changes in the market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of portfolio
securities, sales of foreign currencies, and the difference between asset and
liability amounts initially stated in foreign currencies and the U.S. dollar
value of the amounts actually received or paid. Net unrealized foreign exchange
gains or losses arise from changes in the value of portfolio securities and
other assets and liabilities at the end of the reporting period, resulting from
changes in the exchange rates.
C. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - Global Series, Asset
Allocation Series and International Series may enter into forward foreign
exchange contracts in order to manage foreign currency risk from purchase or
sale of securities denominated in foreign currency. These funds may also enter
into such contracts to manage changes in foreign currency exchange rates on
portfolio positions. These contracts are marked to market daily, by recognizing
the difference between the contract exchange rate and the current market rate as
unrealized gains or losses. Realized gains or losses are recognized when
contracts are settled and are reflected in the statement of operations. These
contracts involve market risk in excess of the amount reflected in the balance
sheet. The face or contract amount in U.S. dollars reflects the total exposure
these funds have in that particular currency contract. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does not
perform under the contract.
D. FUTURES - Growth & Income Fund, Asset Allocation Series, Social Awareness
Series, Small Company Series, Enhanced Index Series, International Series, and
Ultra Fund utilize futures contracts to a limited extent, with the objectives of
maintaining full exposure to the underlying stock market, enhancing returns,
maintaining liquidity, and minimizing transaction costs. These funds may
purchase futures contracts to immediately position incoming cash in the market,
thereby simulating a fully invested position in the underlying index while
maintaining a cash balance for liquidity. In the event of redemptions, the Funds
may pay departing shareholders from its cash balances and reduce their futures
positions accordingly. Returns may be enhanced by purchasing futures contracts
instead of the underlying securities when futures are believed to be priced more
attractively than the underlying securities. The primary risks associated with
the use of futures contracts are imperfect correlation between changes in market
values of stocks contained in the indexes and the prices of futures contracts,
and the possibility of an illiquid market. Futures contracts are valued based
upon their quoted daily settlement prices.
- --------------------------------------------------------------------------------
82
<PAGE> 84
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Upon entering into a futures contract, the Funds are required to deposit either
cash or securities, representing the initial margin, equal to a certain
percentage of the contract value. Subsequent changes in the value of the
contract, or variation margin, are recorded as unrealized gains or losses. The
variation margin is paid or received in cash daily by the Funds. The Funds
realize a gain or loss when the contract is closed or expires.
E. SECURITY TRANSACTIONS AND INVESTMENT INCOME - Security transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses are reported on an identified cost basis. Dividend income less
foreign taxes withheld (if any) plus foreign taxes recoverable (if any) are
recorded on the ex-dividend date. Interest income is recognized on the accrual
basis. Premium and discounts (except original issue discounts) on debt
securities are not amortized.
F. DISTRIBUTIONS TO SHAREHOLDERS - Distributions to shareholders are recorded
on the ex-dividend date. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. These differences are
primarily due to differing treatments relating to the expiration of net
operating losses and the recharacterization of foreign currency gains and
losses.
G. TAXES - The Funds complied with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distributed all of their
taxable net income and net realized gains sufficient to relieve them from all,
or substantially all, federal income, excise and state income taxes. Therefore,
no provision for federal or state income tax is required.
H. USE OF ESTIMATES - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
2. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under terms of the investment advisory contract, Security Management Company,
LLC (SMC) agrees to provide, or arrange for others to provide, all the services
required by the Growth & Income Fund, Equity Series, Global Series, and Ultra
Fund for a single fee, including investment advisory services, transfer agent
services and certain other administrative services. For Growth and Income Fund,
Equity Series and Ultra Fund this fee is equal to 2% of the first $10 million of
the average daily closing value of each Fund's net assets, 1 1/2% of the next
$20 million, and 1% of the remaining net assets of the Fund for the fiscal year.
For Global Series this fee is equal to 2% of the first $70 million of the
average daily closing value of the Series' net assets and 1 1/2% of the
remaining average net assets of the Series for the fiscal year. Additionally,
SMC agrees to assume all of the Funds' expenses, except for its fee and the
expenses of interest, taxes, brokerage commissions and extraordinary items and
Class B and Class C distribution fees. Management fees are payable to SMC under
an investment advisory contract at an annual rate of 0.75% of the average daily
net assets for Enhanced Index and Select 25 Series, 1.00% for Asset Allocation,
Social Awareness, Value and Small Company Series, and 1.10% for International
Series.
SMC also acts as the administrative agent and transfer agent for the Funds,
and as such performs administrative functions, transfer agency and dividend
disbursing services, and the bookkeeping, accounting and pricing functions for
each Fund. For these services, the Investment Manager receives, from Asset
Allocation Series, an administrative fee equal to .045% of the average daily net
assets of the Series plus, the greater of .10% of its average net assets or
$60,000. For the International Series, the administrative fee is equal to .045%
of the average daily net assets of the Series plus the greater of .10% of the
average net assets for (i) $30,000 for the year ended 1/31/00, (ii) $45,000 for
the year ended 1/31/01 and (iii) $60,000 for the year ended 1/31/02. For
administrative services provided to the Social Awareness Series, Value Series,
Small Company Series, Enhanced Index Series and the Select 25 Series, SMC
receives an administrative fee equal to .09% of the average daily net assets of
each Series. For transfer agent services, SMC is paid an annual fixed charge per
account as well as a transaction fee for all shareholder and dividend payments,
except from Growth and Income Fund Equity Series, Global Series and Ultra Fund.
For the period October 1, 1998 to October 31, 1998, SMC paid Lexington
Management Corporation, an amount equal to 0.50% of the average daily net assets
of Global Series, for investment advisory services provided to the Global
Series. A special meeting of the stockholders of Global Series was held on
October 28, 1998. At this meeting, shareholders voted to approve a new
subadvisory contract, effective November 1, 1998 which replaced Lexington with
OppenheimerFunds, Inc. Under this new agreement, SMC pays OppenheimerFunds an
annual fee equal to a percentage of the average daily closing value of the
combined average daily net assets of Global Series and another Fund managed by
SMC, SBL Series D, computed on a daily basis as follows:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
$0 to $300 Million ............................... .35%
$300 Million to $750 Million ..................... .30%
$750 Million or more ............................. .25%
SMC pays Meridian Investment Management Corporation for subadvisory services
provided to the Asset Allocation Series, an annual fee equal to the following
schedule:
Average Daily Net Assets of the Series Annual Fees
- -------------------------------------- -----------
Less Than $100 Million............................ .40%, plus
$100 Million but less than $200 Million........... .35%, plus
$200 Million but less than $400 Million........... .30%, plus
$400 Million or more.............................. .25%
- --------------------------------------------------------------------------------
83
<PAGE> 85
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
SMC pays Strong Capital Management, Inc. ("Strong") with respect to Small
Company Series, an annual fee based on the combined average net assets of the
Series and another fund managed by SMC, SBL Series X. The fee is equal to:
<TABLE>
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
<S> <C>
Less Than $150 Million ......................... .50%
$150 Million to $500 Million ................... .45%
$500 Million or more ........................... .40%
</TABLE>
Bankers Trust company furnishes investment advisory services to Enhanced
Index Series and International Series. For such services to the Enhanced Index
Series SMC pays Bankers trust an annual fee equal to a percentage of the average
daily closing value of the combined net assets of Enhanced Index Series and
another Fund, managed by SMC, SBL Series H as follows:
<TABLE>
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
<S> <C>
$0 to $100 Million ............................. .20%
$100 Million to $300 Million ................... .15%
$300 Million or more ........................... .13%
</TABLE>
SMC will also pay Bankers Trust the following minimum fees with respect to the
Enhanced Index Series: (i) no minimum fee in the first year the Enhanced Index
begins operations; and (ii) $100,000 in the Series' second year of operations;
and (iii) $200,000 in the third and following years of the Series' operations.
For the services provided to the International Series, SMC pays Bankers Trust an
annual fee equal to a percentage of the average daily closing value of the
combined net assets of International Series and another Fund managed by SMC, SBL
Series I, computed on a daily basis as follows:
<TABLE>
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
<S> <C>
$0 to $200 Million ............................. .60%
$200 Million or more ........................... .55%
</TABLE>
SMC has agreed to limit the total expenses of the Enhanced Index Series and
Select 25 Series to 1.75%, Asset Allocation Series, Social Awareness Series,
Value Series, and the Small Company Series to 2.00%, and the International
Series to 2.25%, in each case exclusive of interest, taxes, extraordinary
expenses, brokerage fees and commissions and 12b-1 fees. The expense limits
other than those for Enhanced Index, Select 25 and International Series are
voluntary limits which may be limited at any time without notice to
shareholders. SMC waived management fees for the Small Company Series through
March 31, 1999.
The Funds have adopted Distribution Plans related to the offering of Class B
and Class C shares pursuant to Rule 12b-1 under the Investment Company Act of
1940 and Small Company, Enhanced Index, International and the Select 25 Series
have also adopted such a Plan with respect to their Class A Shares. The plans
provide for payments at an annual rate of 1.00% of the average daily net assets
of each Fund's Class B and Class C shares and 0.25% of the average daily net
assets of the Small Company, Enhanced Index, International and Select 25 Series
Class A shares. The Class A share 12b-1 fees of Small Company Series are not
currently being charged.
Security Distributors, Inc. (SDl), a wholly-owned subsidiary of Security
Benefit Group, Inc. and the national distributor of the Funds, received net
underwriting commissions on sales of Class A shares and contingent deferred
sales charges on redemptions occurring within 5 years of the date of purchase of
Class B shares and within 1 year of the date of purchase for Class C shares,
after allowances to brokers and dealers in the amounts presented in the
following table:
<TABLE>
<CAPTION>
SDI BROKER/ BROKER/ BROKER/
UNDERWRITING CDSC CDSC DEALER DEALER DEALER
(CLASS A) (CLASS B) (CLASS C) (CLASS A) (CLASS B) (CLASS C)
--------- ------------- --------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Growth & Income Fund ...... $ 4,466 $12,842 $ 0 $ 24,840 $ 15,967 $ 0
Security Eqity Fund:
Equity Series ......... $79,942 $60,129 $ 0 $739,201 $917,965 $4,367
Global Series ......... $ 3,705 $ 8,766 $ 0 $ 13,765 $ 17,434 $ 75
Asset Allocation Series $ 465 $ 529 $ 0 $ 967 $ 6,643 $ 5
Social Awareness Series $ 6,837 $ 1,885 $ 0 $ 81,012 $ 48,694 $ 792
Value Series .......... $ 3,046 $17,142 $ 0 $ 44,933 $ 34,371 $3,587
Small Company Series .. $ 150 $ 0 $ 0 $ 4,308 $ 828 $ 0
Enhanced Index Series . $ 20 $ 22 $ 0 $ 30,784 $ 22,576 $2,816
International Series .. $ 10 $ 0 $ 0 $ 4,424 $ 3,835 $ 425
Select 25 Series ...... $ 550 $ 498 $ 0 $100,757 $ 76,045 $5,372
Ultra Fund ................ $ 2,208 $ 2,420 $ 0 $ 22,066 $ 9,696 $ 5
</TABLE>
Certain officers and directors of the Funds are also officers and/or
directors of Security Benefit Life Insurance Company and its subsidiaries, which
include SMC and SDI.
<PAGE> 86
- --------------------------------------------------------------------------------
84
<PAGE> 87
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
3. FEDERAL INCOME TAX MATTERS
For federal income tax purposes, the amounts of unrealized appreciation
(depreciation) at March 31, 1999, were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Growth & Income Fund $4,729,976 ($7,311,884) ($2,581,908)
Security Equity Fund:
Equity Series 469,860,560 (7,639,214) 462,221,346
Global Series 6,198,368 (1,674,578) 4,523,790
Asset Allocation Series 1,248,615 (683,747) 564,868
Social Awareness Series 5,244,737 (301,320) 4,943,417
Value Series 4,797,366 (2,059,291) 2,738,075
Small Company Series 2,022,801 (194,594) 1,828,207
Enhanced Index Series 504,327 (469,798) 34,529
International Series 148,833 (316,720) (167,887)
Select 25 Series 568,422 (171,397) 397,025
Security Ultra Fund 25,082,467 (7,802,336) 17,280,131
</TABLE>
4. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended March 31, 1999, (excluding
overnight investments and short-term commercial paper) are as follows:
<TABLE>
<CAPTION>
PROCEEDS
PURCHASES FROM SALES
------------ ------------
<S> <C> <C>
Growth & Income Fund $ 48,124,678 $ 57,240,999
Security Equity Fund:
Equity Series 224,076,637 144,217,134
Global Series 39,190,545 37,250,400
Asset Allocation Series 1,593,522 1,699,406
Social Awareness Series 4,068,281 2,601,995
Value Series 12,612,335 9,243,883
Small Company Series 19,488,997 14,301,794
Enhanced Index Series 11,670,650 1,895,890
International Series 6,407,891 1,023,141
Select 25 Series 10,505,387 345,202
Security Ultra Fund 27,791,614 32,953,668
</TABLE>
5. FORWARD FOREIGN EXCHANGE CONTRACTS
At March 31, 1999, Global Series and International Series had the following
open forward foreign exchange contracts to buy or sell currency (excluding
foreign currency contracts used for purchase and sale settlements):
<TABLE>
<CAPTION>
FOREIGN AMOUNT TO BE NET UNREALIZED
SETTLEMENT CURRENCY (RECEIVED)/PAID U.S.$ VALUE APPRECIATION
CURRENCY TYPE DATE TO BE DELIVERED IN U.S. $ AS OF 3/31/99 (DEPRECIATION)
- -------- ---- ---- --------------- --------- ------------- --------------
Global Series
- -------------
<S> <C> <C> <C> <C> <C> <C>
Canadian Dollar Sell 4/7/99 594,320 (392,913) (392,986) (73)
European Monetary Unit Sell 4/1/99 149,027 (164,294) (160,889) 3,405
European Monetary Unit Sell 4/1/99 98,613 (108,376) (106,463) 1,913
European Monetary Unit Sell 4/1/99 21,996 (23,681) (23,747) (66)
European Monetary Unit Sell 4/7/99 184,800 (170,977) (199,473) (28,496)
British Pound Sell 4/7/99 5,419 (8,714) (8,747) (33)
British Pound Sell 4/7/99 112,614 (181,770) (181,776) (6)
British Pound Sell 4/8/99 5,425 (8,702) (8,756) (54)
Japanese Yen Sell 6/3/99 142,356,000 (1,200,000) (1,208,156) (8,156)
---------
($31,566)
=========
International Series
- --------------------
Canadian Dollar Sell 5/18/99 (59,412) (39,000) (39,401) (401)
Canadian Dollar Buy 5/18/99 59,412 39,483 39,401 (82)
Swiss Franc Sell 5/18/99 (66,420) (45,000) (45,039) (39)
European Monetary Unit Sell 4/8/99 (200,000) (217,702) (215,839) 1,863
European Monetary Unit Sell 4/8/99 (125,000) (136,699) (134,900) 1,799
European Monetary Unit Sell 4/8/99 (200,000) (216,992) (215,839) 1,153
European Monetary Unit Buy 4/8/99 200,000 220,773 215,839 (4,934)
European Monetary Unit Buy 4/8/99 125,000 134,406 134,900 494
Japanese Yen Sell 4/8/99 (12,236,500) (100,000) (103,347) (3,347)
Japanese Yen Sell 4/19/99 (47,196,496) (401,092) (398,785) 2,307
Japanese Yen Sell 4/19/99 (11,767,000) (100,000) (99,425) 575
Japanese Yen Buy 4/8/99 12,236,500 101,950 103,347 1,397
Japanese Yen Buy 4/19/99 47,196,496 401,092 398,785 (2,307)
Norwegian Kroner Buy 5/18/99 203,180 26,000 26,144 144
Swedish Krona Sell 5/18/99 (211,822) (26,000) (25,733) 267
Singapore Dollar Sell 5/10/99 (60,224) (35,000) (34,991) 9
--------
($1,102)
========
</TABLE>
- --------------------------------------------------------------------------------
85
<PAGE> 88
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
The Funds are authorized to issue unlimited number of shares in an
unlimited number of classes. Transactions in the capital shares of the Funds
were as follows:
<TABLE>
<CAPTION>
1999 1999 1999 1999 1999
Shares Amount Shares Amount Shares
Sold Sold Reinvested Reinvested Redeemed
---------- ---------- ---------- ---------- ----------
Growth & Income Fund
<S> <C> <C> <C> <C> <C>
Class A shares 308,039 $ 2,336,621 1,799,007 $12,416,730 (1,254,457)
Class B shares 187,041 1,413,815 247,876 1,670,438 (288,961)
Class C shares 196 1,343 -- -- --
---------- ------------ --------- ----------- -----------
Total 495,276 $ 3,751,779 2,046,883 $14,087,168 (1,543,418)
========== ============ ========= =========== ===========
Equity Series
Class A shares 8,565,573 $ 82,542,852 6,045,454 $59,027,795 (7,690,396)
Class B shares 5,049,566 47,068,246 1,056,869 9,901,809 (2,761,089)
Class C shares 82,916 831,989 -- -- --
---------- ------------ --------- ----------- -----------
Total 13,698,055 $130,443,087 7,102,323 $68,929,604 (10,451,485)
========== ============ ========= =========== ===========
Global Series
Class A shares 441,209 $ 5,467,246 130,222 $ 1,583,759 (298,305)
Class B shares 415,913 5,003,199 86,876 1,024,270 (245,545)
Class C shares 401 5,015 -- -- --
---------- ------------ --------- ----------- -----------
Total 857,523 $ 10,475,460 217,098 $ 2,608,029 (543,850)
========== ============ ========= =========== ===========
Asset Allocation Series
Class A shares 12,578 $ 142,418 24,538 $ 271,998 (32,659)
Class B shares 15,246 171,161 21,691 239,384 (24,173)
Class C shares 27 303 -- -- --
---------- ------------ --------- ----------- -----------
Total 27,851 $ 313,882 46,229 $ 511,382 (56,832)
========== ============ ========= =========== ===========
Social Awareness Series
Class A shares 143,097 $ 3,313,629 6,458 $ 147,295 (87,399)
Class B shares 98,610 2,235,132 4,915 109,754 (80,744)
Class C shares 4,740 114,675 -- -- --
---------- ------------ --------- ----------- -----------
Total 246,447 $ 5,663,436 11,373 $ 257,049 (168,143)
========== ============ ========= =========== ===========
Value Series
Class A shares 366,033 $ 4,979,344 3,927 $ 54,488 (188,602)
Class B shares 96,990 1,330,104 2,086 28,595 (66,374)
Class C shares 16,714 239,135 -- -- --
---------- ------------ --------- ----------- -----------
Total 479,737 $ 6,548,583 6,013 $ 83,083 (254,976)
========== ============ ========= =========== ===========
Small Company Series
Class A shares 573,401 $ 5,475,821 -- -- (28,804)
Class B shares 19,112 191,371 -- -- (7,945)
Class C shares 14,600 147,295 -- -- --
---------- ------------ --------- ----------- -----------
Total 607,113 $ 5,814,487 -- -- (36,749)
========== ============ ========= =========== ===========
Enhanced Index Series
Class A shares 462,706 $ 4,614,816 -- -- (126)
Class B shares 446,671 4,461,872 -- -- (45)
Class C shares 372,722 3,725,836 -- -- --
---------- ------------ --------- ----------- -----------
Total 1,282,099 $ 12,802,524 -- -- (171)
========== ============ ========= =========== ===========
International Series
Class A shares 204,587 $ 2,021,083 -- -- (266)
Class B shares 176,924 1,762,722 -- -- --
Class C shares 174,847 1,742,333 -- -- --
---------- ------------ --------- ----------- -----------
Total 556,358 $ 5,526,138 -- -- (266)
========== ============ ========= =========== ===========
Select 25 Series
Class A shares 524,540 $ 5,268,670 -- -- (2,902)
Class B shares 416,813 4,209,397 -- -- (1,430)
Class C shares 167,930 1,683,531 -- -- --
---------- ------------ --------- ----------- -----------
Total 1,109,283 $ 11,161,598 -- -- (4,332)
========== ============ ========= =========== ===========
Security Ultra Fund
Class A shares 1,500,303 $ 12,232,002 2,215,600 $16,490,713 (2,001,776)
Class B shares 432,095 3,370,361 280,843 1,958,316 (761,449)
Class C shares 38 303 -- -- --
---------- ------------ --------- ----------- -----------
Total 1,932,436 $ 15,602,666 2,496,443 $18,449,028 (2,763,225)
========== ============ ========= =========== ===========
<CAPTION>
1999 1999 1999
Amount Increase/Decrease Increase/Decrease
Redeemed Shares Amount
---------- ---------- ----------
Growth & Income Fund
<S> <C> <C> <C>
Class A shares ($9,209,677) 852,589 $ 5,543,674
Class B shares (2,075,712) 145,956 1,008,541
Class C shares -- 196 1,343
------------- ----------- ------------
Total ($11,285,389) 998,741 $ 6,553,558
============= =========== ============
Equity Series
Class A shares ($75,159,871) 6,920,631 $ 66,410,776
Class B shares (25,794,322) 3,345,346 31,175,733
Class C shares -- 82,916 831,989
------------- ----------- ------------
Total ($100,954,193) 10,348,893 $ 98,418,498
============= =========== ============
Global Series
Class A shares ($3,699,409) 273,126 $ 3,351,596
Class B shares (2,948,169) 257,244 3,079,300
Class C shares -- 401 5,015
------------- ----------- ------------
Total ($6,647,578) 530,771 $ 6,435,911
============= =========== ============
Asset Allocation Series
Class A shares ($371,094) 4,457 $ 43,322
Class B shares (269,244) 12,764 141,301
Class C shares -- 27 303
------------- ----------- ------------
Total ($640,338) 17,248 $ 184,926
============= =========== ============
Social Awareness Series
Class A shares ($2,069,881) 62,156 $ 1,391,043
Class B shares (1,882,561) 22,781 462,325
Class C shares -- 4,740 114,675
------------- ----------- ------------
Total ($3,952,442) 89,677 $ 1,968,043
============= =========== ============
Value Series
Class A shares ($2,677,104) 181,358 $ 2,356,728
Class B shares (903,957) 32,702 454,742
Class C shares -- 16,714 239,135
------------- ----------- ------------
Total ($3,581,061) 230,774 $ 3,050,605
============= =========== ============
Small Company Series
Class A shares ($289,715) 544,597 $ 5,186,106
Class B shares (76,054) 11,167 115,317
Class C shares -- 14,600 147,295
------------- ----------- ------------
Total ($365,769) 570,364 $ 5,448,718
============= =========== ============
Enhanced Index Series
Class A shares ($1,268) 462,580 $ 4,613,548
Class B shares (450) 446,626 4,461,422
Class C shares -- 372,722 3,725,836
------------- ----------- ------------
Total ($1,718) 1,281,928 $ 12,800,806
============= =========== ============
International Series
Class A shares ($2,471) 204,321 $ 2,018,612
Class B shares -- 176,924 1,762,722
Class C shares -- 174,847 1,742,333
------------- ----------- ------------
Total ($2,471) 556,092 $ 5,523,667
============= =========== ============
Select 25 Series
Class A shares ($29,044) 521,638 $ 5,239,626
Class B shares (14,720) 415,383 4,194,677
Class C shares -- 167,930 1,683,531
------------- ----------- ------------
Total ($43,764) 1,104,951 $ 11,117,834
============= =========== ============
Security Ultra Fund
Class A shares ($16,248,947) 1,714,127 $ 12,473,768
Class B shares (5,762,031) (48,511) (433,354)
Class C shares -- 38 303
------------- ----------- ------------
Total ($22,010,978) 1,665,654 $ 12,040,717
============= =========== ============
</TABLE>
- -------------------------------------------------------------------------------
86
<PAGE> 89
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1998 1998 1998 1998
Shares Amount Shares Amount Shares
Sold Sold Reinvested Reinvested Redeemed
---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Growth & Income Fund
Class A shares 897,930 $ 8,039,594 2,491,694 $20,461,757 (1,631,465)
Class B shares 777,100 6,982,465 224,071 1,801,115 (386,154)
---------- ------------ --------- ----------- -----------
Total 1,675,030 $ 15,022,059 2,715,765 $22,262,872 (2,017,619)
========== ============ ========= =========== ===========
Security Equity Fund
Equity Series
Class A shares 14,708,089 $136,274,032 7,660,051 $62,161,314 (18,384,656)
Class B shares 9,679,948 87,126,289 983,955 7,737,823 (7,521,486)
---------- ------------ --------- ----------- -----------
Total 24,388,037 $223,400,321 8,644,006 $69,899,137 (25,906,142)
========== ============ ========= =========== ===========
Global Series
Class A shares 550,745 $ 6,756,901 178,892 $ 1,961,738 (826,479)
Class B shares 609,174 7,257,866 101,172 1,084,862 (539,145)
---------- ------------ --------- ----------- -----------
Total 1,159,919 $ 14,014,767 280,064 $ 3,046,600 (1,365,624)
========== ============ ========= =========== ===========
Asset Allocation Series
Class A shares 40,767 $ 477,764 26,301 $ 281,349 (70,566)
Class B shares 23,179 273,444 24,152 257,508 (45,400)
---------- ------------ --------- ----------- -----------
Total 63,946 $ 751,208 50,453 $ 538,857 (115,966)
========== ============ ========= =========== ===========
Social Awareness Series
Class A shares 99,548 $ 1,947,642 705 $ 12,614 (52,024)
Class B shares 89,089 1,754,799 -- -- (17,598)
---------- ------------ --------- ----------- -----------
Total 188,637 $ 3,702,441 705 $ 12,614 (69,622)
========== ============ ========= =========== ===========
Value Series
Class A shares 638,717 $ 8,620,440 13,847 $ 169,124 (106,666)
Class B shares 368,016 4,903,668 7,210 87,953 (97,738)
---------- ------------ --------- ----------- -----------
Total 1,006,733 $ 13,524,108 21,057 $ 257,077 (204,404)
========== ============ ========= =========== ===========
Small Company Series
Class A shares 342,821 $ 3,335,436 113 $ 1,049 (35,285)
Class B shares 182,081 1,815,706 -- -- (7,752)
---------- ------------ --------- ----------- -----------
Total 524,902 $ 5,151,142 113 $ 1,049 (43,037)
========== ============ ========= =========== ===========
Security Ultra Fund
Class A shares 1,810,198 $ 15,549,214 479,762 $ 3,906,218 (2,607,409)
Class B shares 652,253 5,484,993 37,989 296,771 (589,552)
---------- ------------ --------- ----------- -----------
Total 2,462,451 $ 21,034,207 517,751 $ 4,202,989 (3,196,961)
========== ============ ========= =========== ===========
<CAPTION>
1998 1998 1998
Amount Increase (Decrease) Increase (Decrease)
Redeemed Shares Amount
------------ ------------ ------------
<S> <C> <C> <C>
Growth & Income Fund
Class A shares ($14,689,087) 1,758,159 $13,812,264
Class B shares (3,361,102) 615,017 5,422,478
------------- ---------- ------------
Total ($18,050,189) 2,373,176 $19,234,742
============= ========== ============
Security Equity Fund
Equity Series
Class A shares $169,188,732) 3,983,484 $29,246,614
Class B shares (67,220,998) 3,142,417 27,643,114
------------- ---------- ------------
Total ($236,409,730) 7,125,901 $56,889,728
============= ========== ============
Global Series
Class A shares ($10,210,710) (96,842) ($1,492,071)
Class B shares (6,570,649) 171,201 1,772,079
------------- ---------- ------------
Total ($16,781,359) 74,359 $280,008
============= ========== ============
Asset Allocation Series
Class A shares ($834,386) (3,498) ($75,273)
Class B shares (518,143) 1,931 12,809
------------- ---------- ------------
Total ($1,352,529) (1,567) ($62,464)
============= ========== ============
Social Awareness Series
Class A shares ($1,015,030) 48,229 $ 945,226
Class B shares (353,596) 71,491 1,401,203
------------- ---------- ------------
Total ($1,368,626) 119,720 $2,346,429
============= ========== ============
Value Series
Class A shares ($1,448,635) 545,898 $7,340,929
Class B shares (1,246,510) 277,488 3,745,111
------------- ---------- ------------
Total ($2,695,145) 823,386 $11,086,040
============= ========== ============
Small Company Series
Class A shares ($357,569) 307,649 $2,978,916
Class B shares (81,997) 174,329 1,733,709
------------- ---------- ------------
Total ($439,566) 481,978 $4,712,625
============= ========== ============
Security Ultra Fund
Class A shares ($22,820,668) (317,449) ($3,365,236)
Class B shares (5,113,365) 100,690 668,399
------------- ---------- ------------
Total ($27,934,033) (216,759) ($2,696,837)
============= ========== ============
</TABLE>
7. EXPENSE REDUCTIONS
The Funds have directed certain portfolio trades tobrokers who paid a
portion of each Fund's expenses. Fund expenses were reduced as indicated in the
table below:
<TABLE>
<CAPTION>
FISCAL YEAR SIX MONTHS
ENDED 9/30/98 ENDED 3/31/99
------------- -------------
<S> <C> <C>
Growth & Income Fund $ 685 $ 346
Equity Series 6,614 3,861
Global Series -- --
Asset Allocation Series 52 27
Social Awareness Series 90 58
Value Series 112 77
Small Company Series -- --
Select 25 Series N/A 7
Ultra Fund 619 338
--------- ---------
$8,172 $4,714
========= =========
</TABLE>
8. OPEN FUTURES CONTRACT
At March 31, 1999, Enhanced Index Series had the following open futures
contract:
<TABLE>
<CAPTION>
NUMBER EXPIRATION CONTRACT MARKET UNREALIZED
OF CONTRACTS DATE AMOUNT VALUE LOSS
------------ ---- ------ ----- ----
<S> <C> <C> <C> <C> <C>
S&P 500 Futures Contracts 9 6/18/99 $2,954,429 $2,909,925 ($44,504)
</TABLE>
At March 31, 1999, the market value of assets pledged to cover margin
requirements for open futures contracts was $2,909,925.
- --------------------------------------------------------------------------------
87
<PAGE> 90
THIS PAGE LEFT INTENTIONALLY BLANK
88
<PAGE> 91
THE SECURITY GROUP
OF MUTUAL FUNDS
Security Growth and Income Fund
Security Equity Fund
- Equity Series
- Global Series
- Asset Allocation Series
- Social Awareness Series
- Value Series
- Small Company Series
- Enhanced Index Series
- International Series
- Select 25 Series
Security Ultra Fund
Security Income Fund
- Corporate Bond Series
- U.S. Government Series
- Limited Maturity Bond Series
- High Yield Series
Security Municipal Bond Fund
Security Cash Fund
This report is submitted for the general information of the shareholders of the
Funds. The report is not authorized for distribution to prospective investors in
the Funds unless preceded or accompanied by an effective prospectus which
contains details concerning the sales charges and other pertinent information.
SECURITY FUNDS
OFFICERS AND DIRECTORS
DIRECTORS
Donald A. Chubb, Jr.
John D. Cleland
Penny A. Lumpkin
Mark L. Morris, Jr., D.V.M.
Maynard F. Oliverius
James R. Schmank
OFFICERS
John D. Cleland, President
James R. Schmank, Vice President
Mark E. Young, Vice President
Steven M. Bowser, Vice President, Equity Fund
David Eshnaur, Vice President, Equity Fund
Terry A. Milberger, Vice President, Equity Fund
Michael A. Petersen, Vice President, Growth and Income Fund
James P. Schier, Vice President, Equity Fund
Cindy L. Shields, Vice President, Ultra and Equity Fund
Jane A. Tedder, Vice President, Equity Fund
Amy J. Lee, Secretary
Christopher D. Swickard, Assistant Secretary
Brenda M. Harwood, Treasurer
-----------------
BULK RATE
[SECURITY DISTRIBUTORS, INC. LOGO] U.S. POSTAGE PAID
PERMIT NO. 941
CHICAGO, IL
-----------------
700 SW Harrison St.
Topeka, KS 66636-0001
