<PAGE> 1
PRESIDENT'S COMMENTARY
- --------------------------------------------------------------------------------
NOVEMBER 15, 1999
To Our Shareholders:
The fiscal year ended September 30, 1999 was another
[PHOTO OF rewarding period for investors in the equity markets.
JOHN Performance in the Security Funds was led by outstanding
CLELAND] performances in Security Ultra Fund and in the Value
Series and Small Company Series of Security Equity Fund.
On the pages that follow, each portfolio manager discusses
the results in his or her particular portfolio and the positive and negative
forces that impacted those results.
GLOBAL ECONOMIC GROWTH WILL HELP EARNINGS GROWTH
In recent years the primary focus of investor choices has been a narrow group of
large-cap highly visible growth stocks. Lately, however, with the anticipation
of the resumption of global economic growth the markets have clearly broadened.
The expectation of improved world economies creates an opportunity for a wider
spectrum of stocks to produce the kind of earnings growth that investors seek.
In addition, the perception that the global economic crisis is reaching an end
has led to diminished concerns about market liquidity, and this too has
contributed to the broadening of the markets. We expect this trend to continue
in the coming year as global economic conditions improve. It is particularly
noteworthy to focus on the strength in the Japanese markets resulting from signs
of recovery in that country. We believe that Japan, the second largest economy
in the world, has turned the corner and is poised to positively impact economic
growth across all of Southeast Asia.
EQUITY INVESTORS ARE WATCHING INTEREST RATES
The equity markets did not have the benefit in the past twelve months of
declining levels of interest rates that have been such positive contributors in
previous years.
The outlook for rates in the coming months is uncertain at this time; therefore,
the markets will be dependent upon continued growth in earnings to move them to
new high ground. With valuations in many market sectors at elevated levels
currently, we would not expect to see the 20% and 30% returns in the coming year
that have rewarded equity investors recently. Nevertheless, we continue to
expect positive performance from the equity markets, albeit at slower rates of
gain.
NEW AND RESTRUCTURED PORTFOLIOS IN THE SECURITY EQUITY FUND FAMILY
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 also welcome the Select 25 Series of Security Equity Fund to
our family of equity offerings. This highly concentrated fund offers long-term
investors the opportunity for returns from a list of high quality growth stocks
in a portfolio with a "buy and hold" philosophy, emphasizing lower portfolio
turnover rates to maximize tax efficiency.
The Asset Allocation Series of Security Equity Fund changed its name, its
investment approach and its fund manager in mid-May of this year. The Asset
Allocation Series is now known as the Total Return Series. Originally the
portfolio assets were allocated among seven asset classes; under its new
investment approach the portfolio pursues an all-domestic equity strategy
primarily consisting of large-cap stocks with a mix of growth and value
attributes. The former Asset Allocation Series was managed by an outside
subadviser; the Total Return Series is managed in-house under the guidance of
Terry Milberger, Senior Portfolio Manager.
We encourage you to read the portfolio managers' comments on the following
pages. 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
- --------------------------------------------------------------------------------
1
<PAGE> 2
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND
NOVEMBER 15, 1999
To Our Shareholders:
The fiscal year ended September 30, 1999 was mixed for
portfolios which use value-oriented and income-oriented
[PHOTO OF strategies. For the twelve-month period ended September
MICHAEL A. 30, Security Growth and Income Fund returned 12.00%(1),
PETERSEN trailing the 20.61% average of its Lipper peer group and
PORTFOLIO the 27.80% return of the Standard and Poor's 500 Stock
MANAGER] Index.
Through much of the first half of the fiscal year the greatest problem for
growth and income managers was the narrowness of the market. A small number of
stocks, primarily large-cap and technology-oriented companies, led the surge in
the stock markets. But in the third and fourth fiscal quarters investors began
broadening their choices and lessening their exposure to the small group of
stocks which had led the markets earlier.
A GOOD TIME TO OWN ENERGY STOCKS
A major contributor to positive performance in the second half of the fiscal
year was our increase in exposure to energy stocks. We had purchased these
positions late in 1998, and for a short period they hurt us as oil prices
continued to fall to nearly $12 per barrel. But once the price of that commodity
began rising the performance of the stocks followed suit, giving share prices a
substantial boost. As the OPEC member nations displayed their resolve in holding
firm to lowered targets for oil production oil prices began rising and closed
September 30 in excess of $24 per barrel.
AVOIDING UNDERPERFORMING SECTORS HELPS RELATIVE PERFORMANCE
Sometimes not owning certain sectors can help performance as well. Our
underweighting in the consumer staples area-we didn't own companies such as Coca
Cola, Gillette, Procter and Gamble, and Anheuser-Busch was beneficial as this
sector underperformed the general markets. Investors have been concerned that if
the U.S. economy would slow as Federal Reserve officials have indicated they
wanted it to do, these consumer staples companies would see sales slow as well.
Economic difficulties in overseas markets in 1998 and early 1999 also dampened
the sales of these companies, since they had seen a sizeable part of their
growth coming from foreign markets.
Financial company stocks, another group in which we were underweight, also
lagged the overall markets as rising interest rates had a negative impact on
their profit margins. Banks, insurance companies, and others in this group
staged a mild rally in late 1998 as interest rates fell to 5.07% at calendar
year end, but lost ground when the Federal Reserve boosted its short-term
interest rate target twice in 1999.
A BUSY YEAR FOR MERGERS AND ACQUISITIONS
Continuing the trend of the past few years, the number of corporate mergers and
acquisitions has grown steadily. Our portfolio has benefited from a number of
these takeovers as investors were quick to realize the potential gains from
streamlining operations and cutting costs. Honeywell, Inc. merged with
AlliedSignal, Inc., and AMP, Inc. was purchased by Tyco International, Ltd. In
the energy sector Mobil Corporation merged with Exxon Corporation, Atlantic
Richfield Company was acquired by BP/Amoco, a company which itself was formed
from the merger of two other oil giants.
LOOKING TO THE COMING YEAR
We expect economic growth to continue on a moderately strong track, although it
may slow somewhat from its pace of the past two years. Overseas economies are
recovering from their slowdowns as well. We believe returns on stocks will
resume growth at a pace closer to the 10% to 12% historical averages, and will
favor lower-risk issues. We plan to maintain an underweight position relative to
the benchmark indexes in technology stocks because of their current high
valuations. We also will be cautious about owning health care issues because of
the continuing uncertainty in that sector about reimbursement levels for
Medicare and Medicaid patients.
Michael A. Petersen
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
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2
<PAGE> 3
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SECURITY GROWTH AND INCOME FUND CHART]
Security Growth &
Income Fund S&P 500
89 10,000 10,000
90 8,882 9,070
91 10,860 11,905
92 11,367 13,216
93 13,141 14,932
94 12,138 15,481
95 14,595 20,074
96 17,560 24,156
97 23,760 33,937
98 21,871 37,012
99 24,496 47,296
$10,000 OVER TEN YEARS
This chart assumes a $10,000 investment in Class A shares of Growth and Income
Fund on September 30, 1989, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class A shares of the fund
(with dividends reinvested) would have grown to $24,496. By comparison, the same
$10,000 investment would have grown to $47,296 based on the S&P's performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B shares, which were first offered on October 19, 1993
and Class C shares, which were first offered on January 29, 1999, will be
greater or less than the performance shown for Class A shares as a result of the
different loads and fees associated with an investment in Class B and Class C
shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Royal Dutch Petroleum
Company ADR 3.0%
Schlumberger, Ltd. 2.2%
Bank of America Corporation 2.0%
AT&T Corporation 1.9%
Fannie Mae 1.9%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 year 5 years 10 years
------ ------- --------
<S> <C> <C> <C>
A Shares 12.00% 15.08% 10.02%
A Shares with sales charge 5.54% 13.74% 9.37%
B Shares 10.93% 13.91% 10.02%
(10-19-93)
(since inception)
B Shares with CDSC 5.93% 13.67% 10.02%
(10-19-93)
(since inception)
C Shares 3.49% N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC 2.49%
(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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
3
<PAGE> 4
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY SERIES
NOVEMBER 15,1999
To Our Shareholders:
The fiscal year ended September 30, 1999 was disappointing for the Equity Series
of Security Equity Fund. Although its total return for the year was +20.66%(1),
strong by historical average standards, it lagged the
[PHOTO OF +30.65% average return of its Lipper peer group and the
TERRY +27.80% return of the benchmark Standard and Poor's 500
MILBERGER Stock Index.
SENIOR
PORTFOLIO TECHNOLOGY STOCKS LED THE MARKETS, BUT NOT ALL TECH STOCKS
MANAGER] GAINED
The technology sector led the stock markets upward
through most of the year. Unfortunately, we were underweight in this sector,
believing it to be highly overvalued. Investors, however, thought otherwise and
continued to chase the upward momentum. We also expected the Year 2000 computer
issue to have a negative impact on technology stocks, but this effect is just
now beginning to materialize.
Three of our technology holdings subtracted from total return despite the
sector's strong showing overall. Sungard Data Systems, Inc. and Ceridian
Corporation both slid in value when investors became concerned about the outlook
for their earnings. The stock of the third company, Compaq Computer Corporation,
lost half its value in the spring amid management turmoil and poor earnings
reports. Compaq was hurt by its decision not to enter the direct sale market,
which turned out to be a strategic and costly mistake.
LEGISLATIVE IMPACT ON THE FINANCIAL SECTOR
While our insurance company holdings such as Lincoln National Corporation and
American General Corporation performed well in the first part of the fiscal
year, their fortunes were reversed in the last three months. Expectations had
been raised when it appeared likely Congress would pass HR10, the financial
services modernization bill that would among other things allow mergers between
banks and insurance companies. Passage of this bill would make companies such as
Lincoln National and American General likely acquisition candidates, and their
stock prices ran up in anticipation of this event. The bill languished in
Congress, and while it is still likely to pass at some stage, the delay caused
these stock prices to fall sharply. Other financial sector issues have suffered
as interest rates continued to climb.
BUT THERE IS STILL MUCH GOOD NEWS
One of our best-performing stocks was telecommunications company Sprint
Corporation (PCS Group), whose stock rose 400% in the fiscal year ended
September 30. Superb subscriber growth and strong cellular customer growth
attracted investors to the stock in droves.
Among the technology names in the portfolio, many have performed well. Sun
Microsystems, Inc. has been at the forefront of growth in internet usage.
Telecommunications company Cisco Systems, Inc. has been a major beneficiary of
corporate spending on telecommunications infrastructure. And not to be
overlooked, Microsoft Corporation again had a strong year, gaining from new
software applications which they developed and the e-commerce applications
related to them.
OUTLOOK FOR THE COMING YEAR
We believe recent events in the stock markets will lead to improved portfolio
performance in the coming fiscal year. The Standard & Poor's 500 Stock Index has
fallen over 10% from its July 16 high of 1,418.78. The average stock has been in
a bear market recently, as illustrated by the average 26% decline in the Nasdaq
3700 Index stocks since the July highs. Investor sentiment is beginning to turn
negative.
We realize such slides are painful at the time they are occurring. However, the
Federal Reserve Open Market Committee in our view is taking the appropriate
steps to guide the U.S. economy toward continued steady growth with low
inflation. Although the interest rate increases the FOMC has instituted recently
have caused fear in the markets, we expect the results to be favorable for
equity investors in the year ahead.
Terry Milberger
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
4
<PAGE> 5
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SECURITY EQUITY SERIES VS. S&P 500 CHART]
SECURITY EQUITY SERIES S&P 500
89 10,000 10,000
90 7,921 9,070
91 10,629 11,905
92 11,718 13,216
93 14,381 14,932
94 14,662 15,481
95 18,734 20,074
96 23,398 24,156
97 30,903 33,937
98 33,184 37,012
99 40,039 47,296
$10,000 OVER TEN YEARS
This chart assumes a $10,000 investment in Class A shares of Equity Series on
September 30, 1989, and reflects deduction of the 5.75% sales load. On September
30, 1999, the value of your investment in Class A shares of the Series (with
dividends reinvested) would have grown to $40,039. By comparison, the same
$10,000 investment would have grown to $47,296 based on the S&P's performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B shares, which were first offered on October 19, 1993,
and Class C shares which were first offered on January 29, 1999, will be greater
or less than the performance shown for Class A shares as a result of the
different loads and fees associated with an investment in Class B and Class C
shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Microsoft Corporation 3.0%
General Electric Company 2.2%
Cisco Systems, Inc. 1.9%
Tyco International, Ltd. 1.7%
Intel Corporation 1.7%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 year 5 years 10 years
------ ------- --------
<S> <C> <C> <C>
A Shares 20.66% 22.25% 15.57%
A Shares with sales charge 13.73% 22.81% 14.88%
B Shares 19.23% 21.04% 17.37%
(10-19-93)
(since inception)
B Shares with CDSC 14.23% 20.85% 17.37%
(10-19-93)
(since inception)
C Shares (2.37%) N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC (3.34%) 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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
5
<PAGE> 6
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY GLOBAL SERIES
NOVEMBER 15, 1999
[OPPENHEIMER FUNDS LOGO]
To Our Shareholders:
We are very pleased with the performance of the Global
[PHOTO OF Series of Security Equity Fund for the fiscal year ended
WILLIAM L. September 30, 1999. The Series provided a total return of
WILBY 34.39%(1), outperforming both the Lipper peer group
PORTFOLIO average return of 30.51% and the 27.98% return of the
MANAGER] benchmark Morgan Stanley Capital International World
Index.
DRAMATIC REBOUNDS IN GLOBAL FINANCIAL MARKETS
After 1998's declines, the global financial markets rebounded quickly and
dramatically. In large part the recovery was the result of actions taken by
central banks worldwide as the crisis unfolded last year. In addition, the
markets' recovery was enhanced by an increase in corporate earnings. Certain key
sectors of the global markets, including the energy and semiconductor
industries, began to recover after experiencing recession-like conditions for
several years. Higher oil prices and robust demand for microchips helped fuel a
rebound in those sectors, which positively influenced the entire marketplace.
The advance in the European markets paused during the first several months of
1999 as the region adjusted to a new currency, the euro, which has weakened
relative to the U.S. dollar. However, these markets once again began to show
signs of life during the summer. In the United States, stocks as a whole have
performed reasonably well, with the greatest returns coming from technology and
economically sensitive businesses such as oil companies and other manufacturers
of basic materials.
OUR FOCUS WAS ON EUROPE AND THE UNITED STATES
Throughout the reporting period we generally maintained our focus on companies
based in Europe and the United States. It is important to note, however, that
this strategy was not so much a reaction to broad economic or market trends as
it was a result of our disciplined, bottom-up stock selection strategy. We
choose investments one company at a time by evaluating their prospects in the
context of long-term growth trends.
A LOOK AHEAD
Looking ahead, we see little reason for global stock markets to either rise or
fall substantially from current levels. On one hand, most global economies are
either stable or growing, and we see little likelihood of an economic collapse
in any major markets. On the other hand, valuations of many growth companies
remain quite high, which should help prevent markets from rising much further.
As a result, we continue to believe that the greatest returns are likely to be
achieved by focusing on individual companies rather than overall markets.
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> 7
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - EQUITY GLOBAL SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SECURITY GLOBAL SERIES VS. MORGAN STANLEY CAPITAL
INTERNATIONAL WORLD INDEX CHART]
SECURITY GLOBAL SERIES MSCI WORLD INDEX
93 10,000 10,000
94 10,226 10,807
95 10,513 12,424
96 12,377 14,185
97 14,880 17,681
98 13,620 17,771
99 18,304 23,086
This chart assumes a $10,000 investment in Class A shares of Global Series on
October 1, 1993, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class-A shares of the Series
(with dividends reinvested) would have grown to $18,304. By comparison, the same
$10,000 investment would have grown to $23,086 based on the MSCI's performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B shares, which were first offered on October 19, 1993,
and Class C shares which were first offered on January 29, 1999, will be greater
or less than the performance shown for Class A shares as a result of the
different loads and fees associated with an investment in Class B and Class C
shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
QUALCOMM, Inc. 6.4%
Porsche AG 3.3%
Sun Microsystems, Inc. 2.9%
National Semiconductor Corporation 2.6%
Volkswagen, Inc. 2.1%
</TABLE>
** At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 year 5 years 10 years
------ ------- --------
<S> <C> <C> <C>
A Shares 34.39% 12.35% 11.68%
(10-1-93)
(since inception)
A Shares with sales charge 26.61% 11.03% 10.58%
(10-1-93)
(since inception)
B Shares 33.04% 11.22% 10.76%
(10-19-93)
(since inception)
B Shares with CDSC 28.04% 10.96% 10.76%
(10-19-93)
(since inception)
C Shares 9.62% N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC 8.62% 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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
7
<PAGE> 8
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - TOTAL RETURN SERIES
NOVEMBER 15, 1999
To Our Shareholders:
The Total Return Series of Security Equity Fund changed its name, its investment
approach and its fund manager in mid-May of this year. Formerly called the Asset
Allocation Series, the portfolio was originally allocated
[PHOTO OF among seven asset classes. The new approach changes the
TERRY nature of the portfolio to a primarily domestic equity
MILBERGER strategy, consisting mainly of large-cap stocks with a mix
SENIOR of growth and value attributes. The main objective
PORTFOLIO continues to be high total return, consisting of capital
MANAGER] appreciation and income derived from stock dividends. The
former Asset Allocation Series was managed by an outside
subadviser; the Total Return Series is managed in-house.
PORTFOLIO MANAGEMENT STRATEGIES
We expect the portfolio to generally consist of fifty to sixty stocks. Most of
the companies chosen for inclusion will have market capitalizations greater than
$10 billion, although some midcap companies which appear unusually attractive
may be included. We also anticipate maintaining a mix of growth stocks and value
issues, a division which is sometimes hard to define. Growth stocks in the
portfolio typically are established companies with a record of consistent
earnings growth. Value stocks are those we believe are undervalued in terms of
price or other financial measurement and which we expect to have above average
growth potential in the future.
Often a growth company will come under pressure and its stock price will fall
enough to put it temporarily in the value category, as was the case recently
with America Online, Inc. when its price fell below $100 per share and we
believed it to be undervalued at that level.
PERFORMANCE OF PORTFOLIO HOLDINGS SINCE THE CHANGEOVER
We have realized excellent gains from the telecommunications holdings in the
portfolio. Leading in this sector are Sprint Corporation and MCI WorldCom, Inc.
The telecommunications equipment providers such as Lucent Technologies Inc.,
Nortel Networks Corporation, and Tellabs, Inc. have also been favorable
performers. In the computer peripherals arena printer manufacturer Lexmark
International Group, Inc. has done very well also.
Another outstanding holding has been Clear Channel Communications, Inc., a
diversified media company with operations in broadcasting and outdoor
advertising. Clear Channel is a leader in its sector, and is benefiting from its
purchase of AMFM (formerly Chancellor Media) and resulting reductions in
overhead expenses. Clear Channel also received a boost from favorable
legislation which allows a company to own an increased number of stations in a
particular market.
Some typically steady growth companies have disappointed in recent months.
Walgreen Company, an operator of retail drug stores, and retail food operator
Safeway, Inc. are two companies with strong fundamental stories, but their stock
prices declined as investors became concerned about the rise in interest rates
and the companies' rich valuations relative to the market averages. In both
cases we plan to continue to hold the stocks because of their strong
fundamentals and excellent management.
PLANS FOR THE COMING YEAR
One objective of the Total Return Series will be to keep portfolio turnover
reasonably low. However, because of the change in management and portfolio
structure in the year just completed, turnover was higher than usual. We expect
market volatility to continue at above-average levels until the interest rate
picture clears and expectations are for lower rates. In volatile markets buying
opportunities often emerge, and we will be watching for stocks that may be
undervalued because of temporary conditions.
Terry Milberger
Senior Portfolio Manager
- --------------------------------------------------------------------------------
8
<PAGE> 9
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - TOTAL RETURN SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[TOTAL RETURN SERIES VS. S&P 500 INDEX CHART]
TOTAL RETURN SERIES S&P 500
6/95 10,000 10,000
9/95 10,540 11,049
96 11,595 13,295
97 13,799 18,679
98 12,807 20,371
99 15,092 26,031
This chart assumes a $10,000 investment in Class A shares of Total Return Series
on June 1, 1995, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class A shares of the Series
(with dividends reinvested) would have grown to $15,092. By comparison, the same
$10,000 investment would have grown to $26,031, based on the S&P's performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares which were initially offered on
January 29, 1999, will be greater or less than the performance shown for Class A
shares as a result of the different loads and fees associated with an investment
in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 EQUITY HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Microsoft Corporation 3.0%
General Electric Company 2.9%
Intel Corporation 2.3%
Omnicom Group, Inc. 2.3%
BMC Software, Inc. 2.3%
</TABLE>
** At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 year Since Inception
------ ------------------
<S> <C> <C>
A Shares 17.84% 9.96% (6-1-95)
A Shares with sales charge 11.11% 8.47% (6-1-95)
B Shares 16.68% 8.93% (6-1-95)
B Shares with CDSC 11.68% 8.58% (6-1-95)
C Shares N/A 0.87% (1-29-99)
C Shares with CDSC N/A (0.13%) (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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
9
<PAGE> 10
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES
NOVEMBER 15, 1999
To Our Shareholders:
The Social Awareness Series of Security Equity Fund gained
[PHOTO OF 26.12% in the fiscal year ended September 30, 1999.(1)
CINDY This compares favorably with the Lipper peer group average
SHIELDS of 27.26% and a 27.80% increase in the Standard & Poor's
PORTFOLIO 500 Stock Index. The benchmark Domini 400 Social Index
MANAGER] rose 32.09% over the same period.
STRONG PERFORMANCE FROM TECHNOLOGY AND COMMUNICATIONS SERVICES
The technology stocks in the portfolio increased an average 68% over the year.
Microsoft Corporation, Intel Corporation, and Cisco Systems, Inc. all turned
in excellent performances, yet some of the smaller technology holdings fared
even better. The stock of integrated circuit manufacturer Analog Devices, Inc.
rose 210%, Xilinx, Inc., a developer of programmable logic solutions, gained
204%, and telecommunications equipment company Tellabs, Inc. was up 186%.
The communication services sector also did very well. The leader was Sprint
Corporation (PCS Group), rising 301% over the period we owned the stock, gaining
from strong subscriber growth and cellular customer usage. Others in this group
included MCI WorldCom, Inc. and Bell Atlantic Corporation. Many communication
services companies are beginning to bundle services by offering long distance
services, wireless phone service, local operations, and internet access. Long
term growth rates should rise as these companies add other options to their list
of services.
TRANSPORTATION AND HEALTH CARE FARED LESS WELL
Although we had only a small exposure to transportation stocks, Southwest
Airlines Company was hurt by the increased expense of higher oil prices. Within
the health care sector the stock of Health Management Associates, Inc., an
operator of hospitals in rural communities, was particularly hard-hit by
Congressional legislation which had unintended negative impact on hospitals with
Medicare reimbursements. While Congress has discussed corrective moves this
year, they have not yet finalized any actions.
NEWS FROM A SOCIAL PERSPECTIVE
Mortgage lender Fannie Mae in 1999 appointed Franklin D. Raines, an African
American, as Chief Executive Officer. In addition, two women and two minority
men serve as senior executives, and three women, one African American man, and
one Hispanic man serve on its eighteen-member board of directors. The firm is
frequently named on lists of best places to work in America.
In 1998 the National Committee for Responsive Philanthropy reported that General
Mills, Inc., manufacturer of consumer food products, had the best record of any
U.S. company on giving to programs for women and girls of color. They are
frequently cited as having one of the most generous and innovative charitable
giving programs in corporate America. The company is a major supporter of such
diverse organizations as Habitat for Humanity, Greater Minneapolis Metropolitan
Housing Corporation, the Minneapolis Crisis Nursery, and the Hole in the Wall
Gang Fund.
These are only two of the outstanding examples of socially aware businesses
represented in our Social Awareness Series portfolio. We are pleased to be able
to provide this investment option for our shareholders.
THE OUTLOOK FOR THE MONTHS AHEAD
In the remaining three months of 1999 we expect the stock markets to display an
increased amount of volatility because of issues surrounding the turn of the
century (the Y2K computer problem) and because of confusion about interest rate
movements by the Federal Reserve. After the new year we believe these issues
will fade and investors will return to more normal concerns such as stock
valuations and earnings momentum. A calmer market climate should encourage
investors to look to a wider range of stocks, giving active portfolio managers
an opportunity to provide positive returns for their shareholders.
Cindy Shields
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
10
<PAGE> 11
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SECURITY SOCIAL AWARENESS SERIES VS. S&P 500 AND DOMINI SOCIAL INDEX CHART]
SOCIAL AWARENESS SERIES S&P 500 DOMINI SOCIAL
96 10,000 10,000 10,000
97 11,300 13,675 13,937
98 12,191 14,743 15,687
99 15,376 18,839 20,721
- --------------------------------------------------------------------------------
This chart assumes a $10,000 investment in Class A shares of Social Awareness
Series on November 1, 1996, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class A shares of the Series
(with dividends reinvested) would have grown to $15,376. By comparison, the same
$10,000 investment would have grown to $18,839 based on the S&P 500 Index's
performance and $20,721 based on the Domini Social Index.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares, which were initially offered on
January 29, 1999, will be greater or less than the performance shown for Class A
shares as a result of the different loads and fees associated with an investment
in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Microsoft Corporation 5.0%
Intel Corporation 3.4%
Cisco Systems, Inc. 2.6%
Merck & Company, Inc. 2.6%
American International Group, Inc. 2.4%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 Year Since Inception
------ ---------------
<S> <C> <C>
A Shares 26.12% 18.29% (11-1-96)
A Shares with sales charge 18.88% 15.90% (11-1-96)
B Shares 24.81% 17.04% (11-1-96)
B Shares with CDSC 19.81% 16.27% (11-1-96)
C Shares N/A (2.45%) (1-29-99)
C Shares with CDSC N/A (3.43%) (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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
11
<PAGE> 12
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - VALUE SERIES
NOVEMBER 15, 1999
To Our Shareholders:
[PHOTO OF The Value Series of Security Equity Fund had an
JIM SCHIER outstanding year, gaining 38.06%(1) compared with its
PORTFOLIO Lipper peer group average of 20.61%. The benchmark
MANAGER] S&P/Barra Value Index rose 21.40% over the twelve months.
Remarkably, twenty-five stocks in the portfolio each
exceeded 50% total return in the year just completed.
TWO OUTSTANDING SECTORS
The greatest part of the strong performance was attributable to stock selection
and overweighting in the technology and energy sectors. Within the technology
group our best holding was Comverse Technology, Inc., whose stock climbed over
230% in the twelve-month period ended September 30, 1999. Strong earnings news
and increased coverage by sector analysts attracted investors to the company.
S3, Inc., a manufacturer of graphics accelerator chips, climbed over 150% in the
time we held the stock under the direction of a new chief executive officer.
Global technology company EG&G, Inc. also did very well, returning over 70%
during the year. The company hired a new chief executive officer, underwent a
restructuring program, and purchased Perkin Elmer's analytical instrument
division this year.
The energy sector performed particularly well as the price of oil climbed from a
low of around $12 per barrel in February of 1999 to above $24 in September.
Midcap exploration and production companies like Apache Corporation and oil
service firms including BJ Services Company added strongly to portfolio
performance. Each of these two names rose over 100% in the periods in which we
held the stock.
Three of our holdings in the consumer staples sector performed well by normal
standards, although not as well as the stocks mentioned in the previous
paragraphs. The Cheesecake Factory, Inc., operator of casual dining restaurants,
saw its stock price rise after posting favorable earnings. Sonic Corporation,
franchiser and operator of the Sonic drive-in restaurant chain, also displayed
strong earnings. Agribrands International, Inc., a former subsidiary of Ralston
Purina, was a third stock in the sector which gained on positive earnings news.
A FEW DARK CLOUDS IN AN OTHERWISE BRIGHT YEAR
The Value Series portfolio was overweighted relative to its benchmark index in
the health care sector. Legislation had an extremely negative effect on this
sector during the year, putting into question the reimbursement plans for
Medicare and Medicaid services rendered. Stocks in our portfolio which fell
under this cloud included nursing facilities operators Beverly Enterprises,
Inc., Manor Care, Inc., and Integrated Health Services, Inc. Prior to the end of
the fiscal year we sold these three names, but still hold hospital companies
Tenet Healthcare Corporation and Columbia/HCA Healthcare Corporation.
LOOKING AHEAD
After an initial period in 1999 during which midcap stocks had an opportunity to
catch up with their larger cap counterparts, investors returned to the large cap
arena to do their buying. Midcap stocks now appear underpriced relative to the
large caps; many of the midcaps look quite cheap. We believe that when the
market once again broadens and investors recognize the value in stocks other
than large cap names the opportunity exists for more strong performance from the
midcap portfolios.
Jim Schier
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
12
<PAGE> 13
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - VALUE SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SECURITY VALUE SERIES VS. S&P 500 and S&P 500/BARRA VALUE INDEX CHART]
VALUE SERIES S&P 500 S&P 500/BARRA
5/97 10,000 10,000 10,000
9/97 12,205 11,922 11,922
3/98 13,983 13,975 13,527
9/98 11,680 13,002 11,841
3/99 13,968 16,554 14,301
9/99 16,125 16,614 14,383
This chart assumes a $10,000 investment in Class A shares of Value Series on May
1, 1997, and reflects deduction of the 5.75% sales load. On September 30, 1999,
the value of your investment in Class A shares of the Series (with dividends
reinvested) would have been $16,125. By comparison, the same $10,000 investment
would have been $16,614, based on the S&P 500 Index performance. Comparison is
also made to the S&P 500/BARRA Value Index. The same $10,000 investment in the
S&P 500/BARRA Value Index would have been $14,383.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares, which were initially offered on
January 29, 1999, will be greater or less than the performance shown for Class A
shares as a result of the different loads and fees associated with an investment
in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% 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%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 Year Since Inception
------ ---------------
<S> <C> <C>
A Shares 38.06% 24.85% (5-1-97)
A Shares with sales charge 30.08% 21.83% (5-1-97)
B Shares 36.71% 23.61% (5-1-97)
B Shares with CDSC 31.71% 22.69% (5-1-97)
C Shares N/A 13.55% (1-29-99)
C Shares with CDSC N/A 12.55% (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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
13
<PAGE> 14
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SMALL CAP SERIES
NOVEMBER 15, 1999
[STRONG LOGO]
To Our Shareholders:
The Small Cap Series of Security Equity Fund had an
[PHOTO OF outstanding year, returning 49.20%(1) compared with its
RONALD C. Lipper peer group average of 26.93% and a return on the
OGNAR benchmark Russell 2000 Index of 19.16%. The fiscal year
PORTFOLIO began with a broad rally in the equity markets that
MANAGER] continued into the early part of 1999. However, rising
U.S. interest rates and uncertainty over the fate of the
Brazilian economy prompted several prominent strategists to recommend reducing
exposure to equities.
STRONG ECONOMIC REPORTS FRIGHTENED INVESTORS
Positive economic releases in late February prompted a run in large-cap stock
indexes to new record highs. A change in market leadership started to unfold
early in the second calendar quarter, as the market performance broadened out to
both small cap and midcap stocks as well as to the more economically sensitive
sectors. Continued strength in the U.S. economy coupled with the prospects for
recovery in the emerging markets drove this shift in sentiment.
The first quarter Gross Domestic Product report, which is the standard measure
of U.S. economic growth, was released in late April. Its strength seemed to
spark investors' concerns about inflation. These fears intensified when the
April Consumer Price Index showed inflation growing at its fastest pace in nine
years. The Federal Reserve Open Market Committee compounded this fear by
adopting an official bias toward tightening, or raising interest rates. The
combined effect entrapped the stock market in a trading range while sending the
bond prices downward, causing interest rates on the thirty-year Treasury bond to
rise through the 6% level.
Rising interest rates created volatility in many high-growth and high-multiple
market sectors such as pharmaceuticals, technology, and consumer growth stocks.
When the May economic data showed a benign inflation environment, investors
began a quarter end rally in stocks and bonds despite indications from the
Federal Reserve that there could be an interest rate increase on June 30.
INTERNET AND OTHER TECHNOLOGY STOCKS FARED PARTICULARLY WELL
We increased our exposure to internet-related issues, particularly emphasizing
internet infrastructure, following a sharp correction in the sector in the third
fiscal quarter. As the internet grows in depth and scope, e-commerce software
enablers and companies involved in the expansion of its infrastructure are
likely to prosper. Our overweight positions in semiconductors,
telecommunications, and internet-network solutions all had strong performance
relative to their counterparts in the benchmark Russell 2000 Index.
Lower exposure to financial stocks, which typically suffer in a volatile
interest rate climate, also contributed to positive relative returns. We reduced
our holdings in healthcare as the sector came under pressure from proposed
legislative changes to the Medicare system early in the year. Because of this
pressure, medical supply and healthcare product stocks hindered the portfolio
performance relative to the benchmark, as did commercial service stocks.
MARKET VOLATILITY MAY CREATE BUYING OPPORTUNITIES
Despite investors' worries there remains virtually no trace of inflation at
either the wholesale or finished goods level, with the exceptions of energy and
tobacco prices, anywhere in the economy. While the long-term health of the
economy looks good, in the short run some concerns remain. The Federal Reserve
could raise interest rates for the third time this year, the U.S. dollar
continues to weaken against the Japanese yen, and the impact of the year 2000
computer problems commonly known as Y2K on market liquidity has yet to be
determined. These events are likely to result in a volatile stock market
environment. As always, we are prepared to capitalize on short-term volatility
to strengthen the portfolio as we concentrate our efforts on finding
attractively priced growth companies which are led by strong management teams
with dramatic future growth potential.
Ronald C. Ognar
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
14
<PAGE> 15
MANAGER'S COMMENTARY (CONTINUED)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SMALL CAP SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SMALL COMPANY SERIES VS. RUSSELL 2000 INDEX, AND
RUSSELL 2000 GROWTH INDEX CHART]
Small Company Russell Russell 2000
Series 2000 Index Growth Index
10/97 10,000 10,000 10,000
3/98 10,129 10,393 10,033
9/98 8,205 7,912 7,342
3/99 10,016 8,704 8,926
9/99 12,241 9,422 9,739
This chart assumes a $10,000 investment in Class A shares of Small Company
Series on October 15, 1997, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class A shares of the Series
(with dividends reinvested) would have been $12,241. By comparison, the same
$10,000 investment would have been $9,422, based on the Russell 2000 index
performance. Comparison is also made to the S&P Russell 2000 Growth Index. The
same $10,000 investment in the Russell 2000 Growth Index would have been $9,739
over the same period.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares, which were initially offered on
January 29, 1999, will be greater or less than the performance shown for Class A
shares as a result of the different loads and fees associated with an investment
in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Optical Coating Laboratory, Inc. 3.2%
ANTEC Corporation 2.6%
Polycom, Inc. 2.2%
Aironet Wireless Communications, Inc. 2.2%
Harmonic, Inc. 2.0%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 Year Since Inception
------ ---------------
<S> <C> <C>
A Shares 49.20% 14.26% (10-15-97)
A Shares with sales charge 40.63% 10.86% (10-15-97)
B Shares 47.05% 12.91% (10-15-97)
B Shares with CDSC 42.05% 11.08% (10-15-97)
C Shares N/A 15.23% (1-29-99)
C Shares with CDSC N/A 14.23% (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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
15
<PAGE> 16
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
NOVEMBER 15, 1999
[BANKERS TRUST LOGO]
To Our Shareholders:
The Enhanced Index Series of Security Equity Fund 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 approximately one-fourth of
these stocks which in our view have above-average potential for appreciation are
overweighted, while another one-fourth which our screens show have less than
average potential are underweighted. During the period from inception of the
Series through September 30, 1999 the portfolio gained 0.40%(1), versus an
increase in the benchmark Standard and Poor's 500 Stock Index of 1.66%.
OPERATION OF THE PROPRIETARY SCREENS
The Enhanced Index Team at Bankers Trust uses several proprietary screens in
deciding when to overweight or underweight stocks in the portfolio. Stocks are
overweighted when one 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, stocks are underweighted 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.
Several of the proprietary screens have added value since inception of the
portfolio. These include Corporate Acquisitions, Momentum, Earnings Surprises,
Seasoned Equity Offerings, and Announced Index Candidates strategies. Those
screens which have detracted from return include Deep Value and Dividend Yield
strategies.
PORTFOLIO MANAGERS' OUTLOOK
While as index fund managers we don't manage the portfolio according to a given
outlook for the equity markets or the economy, we do monitor economic conditions
and how they affect the financial markets. Economic momentum is building around
the world. The U.S. shows little sign of slowing, Asian recoveries have been
surprisingly vigorous, and expansions in Europe have picked up speed. We expect
these trends to continue and intensify, with global growth accelerating in a
self-reinforcing manner over the balance of this year and into 2000.
This rebound in growth is unlikely to result in any serious buildup of
inflationary pressures in Europe and Asia because of the ample economic slack
that still exists in those regions. In the U.S., by contrast, labor markets
remain tight so the risks of economic overheating are more palpable unless
growth cools fairly soon. We doubt that such a slowing is in the cards given the
U.S. economy's strong fundamentals; as a result, we expect additional interest
rate increases and gradually building inflation pressures to impart a cautious
tone in U.S. asset markets.
Enhanced Index Team
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
16
<PAGE> 17
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[ENHANCED INDEX SERIES VS. S&P 500 INDEX]
Enhanced Series S&P 500
1/99 10,000 10,000
2/99 9,114 9,689
3/99 9,444 10,077
4/99 9,764 10,467
5/99 9,538 10,220
6/99 10,104 10,787
7/99 9,764 10,450
8/99 9,717 10,398
9/99 9,463 10,113
This chart assumes a $10,000 investment in Class A shares of Enhanced Index
Series on January 29, 1999, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class A shares of the Series
(with dividends reinvested) would have been $9,463. By comparison, the same
$10,000 investment would have been $10,113, based on the S&P 500 index
performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares, which were initially offered on
January 29, 1999, will be greater or less than the performance shown for Class A
shares as a result of the different loads and fees associated with an investment
in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Microsoft Corporation 3.8%
General Electric Company 3.2%
Intel Corporation 2.0%
International Business Machines
Corporation 1.9%
Cisco Systems, Inc. 1.8%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
Since Inception
-------------------
<S> <C>
A Shares 0.40% (1-29-99)
A Shares with sales charge (5.37%) (1-29-99)
B Shares (0.10%) (1-29-99)
B Shares with CDSC (5.10%) (1-29-99)
C Shares 0.00% (1-29-99)
C Shares with CDSC (1.00%) (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 September 30, 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> 18
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - INTERNATIONAL SERIES
NOVEMBER 15, 1999
[BANKERS TRUST LOGO]
To Our Shareholders:
The International Series of Security Equity Fund which
[PHOTO OF began operations January 29, 1999 is a portfolio of
MICHAEL largely high quality, undervalued midcap and large cap
LEVY stocks of foreign issuers in both developed and emerging
PORTFOLIO countries. The portfolio managers at Bankers Trust Company
MANAGER] employ a bottom-up stock selection process, looking first
at individual companies. After attractively-valued,
inefficiently priced issues are chosen, the political and
[PHOTO OF economic conditions of the country in which the issuing
ROBERT company is located are considered. For the period since
REINER inception the Series has declined 3.10%1, while the
PORTFOLIO benchmark MSCI-EAFE Index rose 13.64%.
MANAGER]
PERFORMANCE IN THE JAPANESE MARKETS
[PHOTO OF Between the inception date of the Series and midyear the
JULIE Japanese stock market, as measured by the Nikkei 225
WANG Index, rose nearly 22%. From midyear through September 30,
PORTFOLIO however, the Index climbed less than 1% as the massive
MANAGER] fiscal spending program undertaken in the first half of
the year came to an end. Our Japanese position was
underweight that of the benchmark MSCI-EAFE Index, which
was a negative for total return.
We are unconvinced at this time that the Japanese economy offers clear evidence
of sustainable recovery. The fiscal spending programs have helped to bring the
country out of recession but have done little to improve productivity, create
permanent jobs or encourage consumer confidence. Capital expenditure reductions,
sharply lower wages and lackluster consumer spending suggest that without
continued pump priming recession will return. Despite these constraints, we
continue to find interesting opportunities in the technology sector in Japan as
well as among non-bank financial companies that do not have the bad debt
exposure or weak profitability of their traditional banking peers.
PROSPECTS LOOK BRIGHTER FOR EUROPE
European equities have been held back by interest rate fears despite data
pointing to strong economic growth. Investors speculated that European interest
rates would rise after noteworthy moves upward by the Bank of England and the
U.S. Federal Reserve. We maintained our overweight position in continental
European equities over the U.K. due to a more favorable economic cycle,
especially in France and many markets in peripheral Europe. France, core
Europe's best-performing market, represented the largest exposure in the
portfolio with a 14.5% weighting as compared to the benchmark index's 9.4%
market cap. Representation in data processing, electronic components and
telecommunications added to our performance in the region, while interest rate
concerns held back financial stocks and durables.
OTHER PACIFIC RIM COUNTRIES AND EMERGING MARKETS
We reduced our Australia weighting since that market has been negatively
affected by U.S. bond sentiment. At the same time we added holdings in Hong
Kong. Increased political risk in Indonesia has led us to trim our exposure
there, and uncertainty created by the bankruptcy of general trading company
Daewoo Corporation in South Korea prompted us to halve our holdings in that
country.
We believe the "easy money" has been made in Asia with interest rates bottoming
and many corporations coming to market with capital issuances. Going forward, we
expect returns in Asia to be more muted, driven by earnings performance. We are
optimistic about Taiwan, India, and South Korea after the Daewoo crisis is
finally sorted out.
We have reduced our Mexican and Brazilian positions due to continued
disappointment over Mexico's banking sector and Brazil's fiscal reform effort.
We expect Latin America to have greater return potential next year once the U.S.
bond market stabilizes. Emerging European countries stand to benefit from the
burgeoning recovery of the European Union economies. In the emerging market
countries in general we will be watching for buying opportunities in the event
the markets weaken due to Year 2000 concerns.
OUTLOOK FOR THE COMING MONTHS
We remain doubtful that a sustainable economic recovery is underway in Japan and
recognize that although industrial restructuring has begun, it will likely be a
long and costly process. We expect economic growth to continue to accelerate in
continental Europe and have maintained our overweight position while the
weighting in the benchmark MSCI-EAFE Index has fallen. We have trimmed our
positions in the U.K. to benefit from opportunities elsewhere. We believe stock
prices there will consolidate amid expectations for weak liquidity as the new
year approached in the emerging market countries, and have reduced our exposure
accordingly. The euro should benefit from the cautious approach the U.S. Federal
Reserve is taking toward raising interest rates further, as the European Central
Bank will likely follow the same pattern. Finally, we believe the Canadian
dollar is attractive at its present levels as the Canadian budgetary current
account is set to move into surplus next year and as commodity prices firm.
Michael Levy, Robert Reiner, Julie Wang
Portfolio Managers
(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.
- --------------------------------------------------------------------------------
18
<PAGE> 19
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - INTERNATIONAL SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[INTERNATIONAL SERIES VS. MORGAN STANLEY CAPITAL INTERNATIONAL EAFE CHART]
International Series MSCI EAFE
1/99 10,000 10,000
2/99 8,850 9,764
3/99 8,822 10,174
4/99 9,086 10,588
5/99 8,709 10,045
6/99 9,086 10,439
7/99 9,227 10,752
8/99 9,161 10,794
9/99 9,133 10,905
This chart assumes a $10,000 investment in Class A shares of International
Series on January 29, 1999, and reflects deduction of the 5.75% sales load. On
September~30, 1999, the value of your investment in Class A shares of the Series
(with dividends reinvested) would have been $9,133. By comparison, the same
$10,000 investment would have been $10,905, based on the Morgan Stanley Capital
International EAFE index performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares will be greater or less than the
performance shown for Class A shares as a result of the different loads and fees
associated with an investment in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Mannesmann AG 1.8%
Fujitsu, Ltd. 1.7%
Vodafone Airtouch PLC 1.6%
Total Fina S.A. 1.6%
Suez Lyonnaise des Eaux 1.5%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
Since Inception
-------------------
<S> <C>
A Shares (3.10%) (1-29-99)
A Shares with sales charge (8.67%) (1-29-99)
B Shares (3.50%) (1-29-99)
B Shares with CDSC (8.33%) (1-29-99)
C Shares (3.20%) (1-29-99)
C Shares with CDSC (4.17%) (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 September 30, 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> 20
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SELECT 25 SERIES
NOVEMBER 15, 1999
To Our Shareholders:
The Select 25 Series gained 5.30% from its inception
[PHOTO OF January 29, 1999, to the end of the fiscal year on
TERRY September 30, outperforming the +0.94%(1) return of the
MILBERGER benchmark S&P/Barra Growth Stock Index over the same time
SENIOR period. The Series uses a two-step approach to selecting
PORTFOLIO stocks for the portfolio. First, we determine what
MANAGER] segments of the economy we believe have the most growth
potential, and then we select the premier companies within
these sectors, trimming the list to 25 companies which we expect to perform best
within their respective industries.
LEADERS IN PERFORMANCE OVER THE PERIOD
The best-performing group since the beginning of the Series was consumer
cyclicals. Within this group Wal-Mart Stores, Inc. and The Home Depot, Inc. were
the best-known names and were both strong gainers. Omnicom Group, Inc., an
advertising services company, and Clear Channel Communications, Inc. in
communications services also made favorable contributions.
Our technology sector also did well, with five companies represented: Cisco
Systems, Inc., Microsoft Corporation, Sun Microsystems, Inc., EMC Corporation,
and America Online, Inc. This mixture of service providers and infrastructure
companies worked well in the portfolio.
CHANGES IN THE PORTFOLIO SINCE INCEPTION
While we expect the Select 25 Series generally to be a low-turnover portfolio, a
few changes were made in this initial period of operation. The Coca-Cola Company
was sold when it became clear to us that the improvement we expected in their
international operations was going to take longer than anticipated. We sold
Sungard Data Systems, Inc. in order to reduce our exposure to the computer
services sector, and Watson Pharmaceuticals, Inc. was sold because we felt it
was not exhibiting the fundamental characteristics of a dominant company in its
industry that we expected to see in this portfolio's holdings.
To replace these issues we added Intel Corporation because of its superior
position in the semiconductor industry, Safeway Inc. because we believe the
company's acquisition strategy will result in strong earnings growth, and Time
Warner, Inc., which we expect to perform well because of the company's dominant
position in the media and entertainment sector.
OUTLOOK FOR THE YEAR AHEAD
We expect to see the technology sector continue to make substantial gains in the
months ahead as overseas economies strengthen and foreign corporations resume
their purchases of computers and related equipment. Although the financial and
health care sectors have been laggards, we expect them to recover in the months
ahead when interest rate concerns and the impact of legislative actions become
less cloudy.
Terry Milberger
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
20
<PAGE> 21
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY EQUITY FUND - SELECT 25 SERIES
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SELECT 25 SERIES VS. S&P/BARRA 500 GROWTH INDEX]
Select 25 Series S&P/BARRA 500
Growth Index
1/99 10,000 10,000
2/99 9,274 9,608
3/99 9,802 10,073
4/99 9,529 10,054
5/99 9,284 9,760
6/99 9,906 10,459
7/99 9,651 10,129
8/99 9,915 10,269
9/99 9,925 10,095
This chart assumes a $10,000 investment in Class A shares of Select 25 Series on
January 29, 1999, and reflects deduction of the 5.75% sales load. On
September 30, 1999, the value of your investment in Class A shares of the Series
(with dividends reinvested) would have been $9,925. By comparison, the same
$10,000 investment would have been $10,095, based on the S&P/Barra 500 Growth
Index performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B and Class C shares, which were initially offered on
January 29, 1999, will be greater or less than the performance shown for Class A
shares as a result of the different loads and fees associated with an investment
in Class B and Class C shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Sun Microsystems, Inc. 4.5%
EMC Corporation 4.4%
America Online, Inc. 4.3%
Clear Channel Communications, Inc. 4.1%
Automatic Data Processing, Inc. 4.0%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
Since Inception
-------------------
<S> <C>
A Shares 5.30% (1-29-99)
A Shares with sales charge (0.75%) (1-29-99)
B Shares 5.20% (1-29-99)
B Shares with CDSC 0.20% (1-29-99)
C Shares 5.50% (1-29-99)
C Shares with CDSC 4.50% (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 September 30, 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> 22
MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
SECURITY ULTRA FUND
NOVEMBER 15, 1999
To Our Shareholders:
Security Ultra Fund experienced an outstanding fiscal year
[PHOTO OF ended September 30, 1999. The portfolio returned
JIM 50.91%(1), compared with a Lipper peer group average gain
SCHIER of 32.89%. The benchmark S&P Midcap 400 Stock Index rose
PORTFOLIO 23.96% over the same period.
MANAGER]
OVERWEIGHTINGS IN TWO STRONG SECTORS HELPED MOST
An overweighting in the technology sector in the Ultra Fund portfolio was the
largest contributor to the year's strong performance. The sector made up nearly
35% of portfolio assets, with our average technology holding rising 102.5%.
Leading the list was JDS Uniphase Corporation, a provider of advanced fiberoptic
components and modules. The company's stock gained an amazing 485% over the
twelve months. Not too far behind was Comverse Technology, rising 230% during
the year on strong earnings reports and increased analyst coverage. Veritas
Software Corporation, a maker of on-line and off-line data management products
for computing systems, rose 173%--a huge gain by normal standards, but only
average within this group of holdings.
The energy sector was our second strong-performing group during the year as oil
prices rose from a low of about $12 per barrel in February to over $24 in
September. We participated in the rise by owning independent exploration and
production companies and oil service firms. Apache Corporation, for example,
rose over 100% during the period in which we held the stock. On the negative
side within the energy sector we owned Forcenergy, Inc., an exploration and
production company which became a victim of the decline in oil prices before the
price recovery began. While we realized a sizeable loss on the stock, we did
sell it prior to the company's bankruptcy filing.
OTHER CONTRIBUTORS TO STRONG PERFORMANCE
Confirming that sometimes it's not where you are invested, but where you aren't,
we gained relative to the benchmark index by not owning utility stocks in a
period in which that group turned in a negative performance. Another positive
contributor was a logistics service company, Expeditors International of
Washington, Inc., which returned more than 130% during the year.
A FEW NEGATIVES, AS WELL
Despite the outstanding year for the Ultra Fund, there were still some weak
sectors. Within the capital goods arena Maxwell Technologies, Inc. fell nearly
40% after announcing weak earnings and its plans to increase spending. Corporate
Express, Inc., a provider of goods and services to corporations and
organizations, lost about 30% on poor earnings reports as well.
The health care sector has continued to suffer under the cloud of legislation
passed in 1997 which had a much greater negative impact on nursing homes and
other extended-care facilities than was intended. Although Congress is
discussing corrective legislation, much uncertainty remains about how Medicare
and Medicaid expenses will be reimbursed in coming months, and many health care
firms in extended-care businesses have seen their share prices fall sharply.
LOOKING TO THE NEXT TWELVE MONTHS
At this time we believe many midcap stocks are substantially undervalued when
compared with their large-cap counterparts. When the markets broaden out
again from their current narrow focus on a small group of large-cap stocks, we
expect midcaps to perform favorably as investors recognize their value. We plan
to remain fully invested, taking advantage of price weakness in the midcap arena
to buy undervalued issues.
Jim Schier
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
- --------------------------------------------------------------------------------
22
<PAGE> 23
MANAGER'S COMMENTARY (continued)
- --------------------------------------------------------------------------------
SECURITY ULTRA FUND
NOVEMBER 15, 1999
- ----------------------------------PERFORMANCE-----------------------------------
[SECURITY ULTRA FUND VS. S&P MIDCAP 400 CHART]
Ultra Fund S&P Midcap
89 10,000 10,000
90 5,695 11,746
91 9,023 17,653
92 9,161 19,852
93 11,619 24,627
94 11,199 25,024
95 13,740 31,471
96 15,850 35,876
97 19,110 49,902
98 16,731 46,759
99 25,249 58,681
$10,000 OVER TEN YEARS
This chart assumes a $10,000 investment in Class A shares of Ultra Fund on
September 30, 1989, and reflects deduction of the 5.75% sales load. On September
30, 1999, the value of your investment in Class A shares of the fund (with
dividends reinvested) would have grown to $25,249. In comparison, the same
$10,000 investment would have grown to $58,681 based on the S&P Midcap 400's
performance.
The performance illustrated above is based on the performance of Class A shares.
The performance of Class B shares, which were first offered on October 19, 1993,
and Class C shares which were first offered on January 29, 1999, will be greater
or less than the performance shown for Class A shares as a result of the
different loads and fees associated with an investment in Class B and Class C
shares.
- --------------------------------------------------------------------------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% of
Net Assets
----------
<S> <C>
Comverse Technology, Inc. 7.7%
Millennium Pharmaceutical 4.4%
PE Corporation - PE Biosystems Group 3.9%
Apache Corporation 3.7%
Rational Software Corporation 3.5%
</TABLE>
**At September 30, 1999
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
As of September 30, 1999
<TABLE>
<CAPTION>
1 year 5 years 10 years
------ ------- --------
<S> <C> <C> <C>
A Shares 50.91% 17.66% 10.35%
A Shares with sales charge 42.18% 16.26% 9.70%
B Shares 49.39% 16.46% 12.54%
(10-19-93)
(since inception)
B Shares with CDSC 44.39% 16.24% 12.54%
(10-19-93)
(since inception)
C Shares 11.10% N/A N/A
(1-29-99)
(since inception)
C Shares with CDSC 10.10% 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 September 30, 1999
and are not annualized. Such figures would be lower if the maximum sales charge
were deducted.
- --------------------------------------------------------------------------------
23
<PAGE> 24
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Growth and Income Fund
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
CORPORATE BONDS OF SHARES VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
BANKING - 0.2%
Homeside, Inc., 11.25% - 2003 ........... $ 121,000 $ 138,394
CONSUMER CYCLICAL - OTHER - 0.1%
American Eco Corporation,
9.625% - 2008 ........................ $ 125,000 73,281
ENERGY - REFINING - 0.2%
Crown Central Petroleum,
10.875% - 2005 ....................... $ 200,000 165,500
FOOD - 0.1%
Nash Finch Company,
8.50% - 2008 ......................... $ 100,000 89,625
GAMING - 0.3%
MGM Grand, Inc., 6.95% - 2005 ........... $ 125,000 115,156
Mirage Resorts, Inc.,
6.625% - 2005 ........................ $ 125,000 117,031
-----------
232,187
HEALTH CARE - 0.1%
Multicare Companies, Inc.,
9.00% - 2007 ......................... $ 200,000 69,500
HOME CONSTRUCTION - 0.1%
Toll Corporation, 7.75% - 2007 .......... $ 100,000 95,375
INSURANCE - 0.1%
General American Life Insurance
Company, 8.525% - 2027 ............... $ 75,000 63,375
MEDIA - NONCABLE - 0.1%
Golden Books Publishing, Inc.,
7.65% - 2002* ........................ $ 200,000 89,000
METALS - 0.0%
Simcala, Inc., 9.625% - 2006 ............ $ 75,000 43,875
SERVICES - 0.0%
Loewen Group, Inc.,
6.70% - 1999* ........................ $ 75,000 41,438
TELECOMMUNICATIONS - 0.1%
Mastec, Inc., 7.75% - 2008 .............. $ 75,000 73,031
-----------
Total corporate bonds - 1.4% ....................... 1,174,581
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE - 1.9%
Boeing Company .......................... 37,500 $ 1,598,437
AGRICULTURAL PRODUCTS - 0.7%
Archer-Daniels-Midland Company .......... 48,400 589,875
AMERICAN GOLD - 1.1%
Placer Dome, Inc. ....................... 60,000 892,500
AUTO PARTS & EQUIPMENT - 1.8%
Dana Corporation ........................ 15,000 556,875
Genuine Parts Company ................... 20,000 531,250
TRW, Inc. ............................... 8,000 398,000
-----------
1,486,125
BANKS - MAJOR REGIONAL - 3.8%
Fleet Financial Group, Inc. ............. 27,000 988,875
KeyCorp ................................. 30,000 774,375
National City Corporation ............... 24,000 640,500
PNC Bank Corporation .................... 15,000 790,313
-----------
3,194,063
BANKS - MONEY CENTER - 2.6%
Bank of America Corporation ............. 30,000 1,670,625
J.P. Morgan & Company, Inc. ............. 5,000 571,250
-----------
2,241,875
BEVERAGES - SOFT DRINK - 1.7%
Coca-Cola Company ....................... 15,000 720,937
PepsiCo, Inc. ........................... 22,500 680,625
-----------
1,401,562
BUILDING MATERIALS - 0.4%
Armstrong World Industries, Inc. ........ 8,000 359,500
CHEMICALS - BASIC - 1.8%
Air Products & Chemicals, Inc. .......... 16,000 465,000
E.I. du Pont de Nemours & Company ....... 4,669 284,225
Praxair, Inc. ........................... 16,000 736,000
----------
1,485,225
CHEMICALS - DIVERSIFIED - 0.6%
FMC Corporation* ........................ 11,000 530,750
COMPUTER HARDWARE - 2.0%
Compaq Computer Corporation ............. 15,000 344,063
Sequent Computer Systems, Inc.* ......... 40,000 720,000
Silicon Graphics, Inc.* ................. 60,000 656,250
----------
1,720,313
COMPUTER SOFTWARE/SERVICES - 0 4%
Autodesk, Inc. .......................... 15,000 328,125
CONTAINER - METAL/GLASS - 0.7%
Crown Cork & Seal Company, Inc. ......... 25,000 606,250
DISTRIBUTION - FOOD & HEALTH - 1 0%
Cardinal Health, Inc. ................... 8,500 463,250
SUPERVALU, Inc. ......................... 18,000 392,625
----------
855,875
ELECTRICAL EQUIPMENT - 2.0%
Emerson Electric Company ................ 19,500 1,232,156
Hubbell, Inc. (Cl.B) .................... 15,000 478,125
----------
1,710,281
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------
24
<PAGE> 25
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Growth and Income Fund (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC COMPANIES - 5.8%
Allegheny Energy, Inc. .................. 13,000 $ 413,562
American Electric Power
Company, Inc. ........................ 24,500 836,063
Central & South West Corporation ........ 30,000 633,750
Constellation Energy Group .............. 10,000 281,250
GPU, Inc. ............................... 25,000 815,625
Kansas City Power & Light Company ....... 30,000 725,625
LG&E Energy Corporation ................. 10,000 212,500
Texas Utilities Company ................. 28,000 1,044,750
----------
4,963,125
ELECTRONICS - DEFENSE - 0.6%
Raytheon Company (Cl.B) ................. 11,000 545,875
ELECTRONICS - DISTRIBUTION - 0.6%
W.W. Grainger, Inc. ..................... 10,000 480,625
ELECTRONICS - SEMICONDUCTORS - 1.5%
Advanced Micro Devices, Inc.* ........... 30,000 515,625
National Semiconductor
Corporation* ......................... 24,000 732,000
----------
1,247,625
ENGINEERING & CONSTRUCTION - 0.6%
Foster Wheeler Corporation .............. 16,000 193,000
McDermott International, Inc. ........... 15,000 303,750
----------
496,750
ENTERTAINMENT - 1.4%
Walt Disney Company ..................... 45,000 1,164,375
FINANCIAL - DIVERSE - 1.9%
Fannie Mae .............................. 26,000 1,629,875
FOODS - 2.9%
Bestfoods, Inc. ......................... 8,000 388,000
ConAgra, Inc. ........................... 34,000 767,125
General Mills, Inc. ..................... 4,100 332,613
Tyson Foods, Inc. ....................... 34,700 570,381
Universal Foods Corporation ............. 15,000 344,063
----------
2,402,182
GOLD & PRECIOUS METALS MINING - 1.8%
Barrick Gold Corporation ................ 67,900 1,476,825
HEALTH CARE - MANAGED CARE - 0.9%
Aetna, Inc. ............................. 8,000 394,000
United Healthcare Corporation ........... 8,000 389,500
----------
783,500
HOSPITAL MANAGEMENT - 1.4%
Columbia/HCA Healthcare
Corporation .......................... 24,200 512,738
Tenet Healthcare Corporation* ........... 40,000 702,500
----------
1,215,238
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.9%
Whirlpool Corporation ................... 12,000 783,750
HOUSEHOLD PRODUCTS - 0.7%
Kimberly-Clark Corporation .............. 11,000 577,500
HOUSEWARES - 0.3%
Fortune Brands, Inc. .................... 8,000 258,000
INSURANCE - LIFE/HEALTH - 1.6%
American General Corporation ............ 14,000 884,625
Conseco, Inc. ........................... 25,000 482,813
----------
1,367,438
INSURANCE - MULTILINE - 0.7%
Loews Corporation ....................... 8,000 561,500
INSURANCE - PROPERTY & CASUALTY - 2.1%
Chubb Corporation ....................... 10,000 498,125
SAFECO Corporation ...................... 19,000 532,000
St. Paul Companies, Inc. ................ 26,700 734,250
----------
1,764,375
IRON & STEEL - 0.9%
USX-U.S. Steel Group .................... 30,000 772,500
LEISURE TIME PRODUCTS - 0.5%
Callaway Golf Company ................... 21,000 255,937
Mattel, Inc. ............................ 11,000 209,000
----------
464,937
MACHINERY - DIVERSE - 2.1%
Deere & Company ......................... 39,500 1,528,156
Milacron, Inc. .......................... 16,000 284,000
----------
1,812,156
MANUFACTURING - DIVERSIFIED - 1.2%
Minnesota Mining &
Manufacturing Company ................ 11,000 1,056,687
MEDICAL PRODUCTS & SUPPLIES - 3.4%
Baxter International, Inc. .............. 15,000 903,750
Becton, Dickinson & Company ............. 22,500 631,406
Dentsply International, Inc. ............ 24,000 546,000
St. Jude Medical, Inc.* ................. 26,200 825,300
----------
2,906,456
NATURAL GAS - 2.4%
MCN Energy Group, Inc. .................. 20,000 343,750
People's Energy Corporation ............. 30,000 1,055,625
Sonat, Inc. ............................. 16,000 635,000
----------
2,034,375
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------
25
<PAGE> 26
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Growth and Income Fund (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
OIL - DOMESTIC - 2.4%
Atlantic Richfield Corporation .............. 6,000 $ 531,750
Conoco, Inc. (Cl.B) ......................... 9,826 268,999
Phillips Petroleum Company .................. 15,000 731,250
USX-Marathon Group .......................... 18,500 541,125
------------
2,073,124
OIL - INTERNATIONAL - 4.5%
Royal Dutch Petroleum
Company ADR .............................. 43,600 2,575,125
Texaco, Inc. ................................ 19,900 1,256,188
------------
3,831,313
OIL & GAS - DRILLING & EQUIPMENT - 3.3%
Halliburton Company ......................... 22,500 922,500
Schlumberger, Ltd. .......................... 30,000 1,869,375
------------
2,791,875
OIL & GAS - EXPLORATION & PRODUCTION - 1.8%
Burlington Resources, Inc. .................. 19,000 698,250
EOG Resources, Inc. ......................... 40,000 850,000
------------
1,548,250
OIL & GAS - REFINING & MARKETING - 0.7%
Ashland, Inc. ............................... 18,000 605,250
PAPER & FOREST PRODUCTS - 2.3%
Champion International
Corporation .............................. 12,000 616,500
International Paper Company ................. 15,000 720,937
Louisiana-Pacific Corporation ............... 40,000 625,000
------------
1,962,437
PHARMACEUTICALS - MAJOR - 2.4%
ELAN Corporation PLC ........................ 37,500 1,258,594
Teva Pharmaceutical Industries, Ltd. ........ 16,000 805,000
------------
2,063,594
PHOTOGRAPHY - IMAGING - 1.6%
Eastman Kodak Company ....................... 12,000 905,250
Polaroid Corporation ........................ 16,000 416,000
------------
1,321,250
PUBLISHING - NEWSPAPER - 1.4%
Dow Jones & Company, Inc. ................... 16,000 854,000
Gannett Company, Inc. ....................... 6,000 415,125
------------
1,269,125
RAILROADS - 1.7%
CSX Corporation ............................. 15,000 635,625
Union Pacific Corporation ................... 16,000 769,000
------------
1,404,625
REAL ESTATE INVESTMENT TRUSTS - 2.5%
Camden Property Trust ....................... 20,000 537,500
Highwoods Properties, Inc. .................. 30,000 776,250
Liberty Property Trust ...................... 24,000 544,500
Simon Property Group, Inc. .................. 12,000 269,250
------------
2,127,500
RETAIL - DEPARTMENT STORES - 1.6%
Dillard's, Inc. ............................. 24,000 487,500
J.C. Penney Company, Inc. ................... 24,000 825,000
------------
1,312,500
RETAIL - DRUG STORES - 0.9%
Longs Drug Store Corporation ................ 25,000 746,875
RETAIL - FOOD CHAINS - 0.9%
Winn-Dixie Stores, Inc. ..................... 25,000 742,188
RETAIL - SPECIALTY - 0.4%
Toys "R" Us, Inc.* .......................... 20,000 300,000
SERVICES - COMMERCIAL & CONSUMER - 0.3%
Laidlaw, Inc. ............................... 40,000 270,000
SERVICES - DATA PROCESSING - 0.5%
Electronic Data System
Corporation .............................. 8,000 423,500
SPECIALTY PRINTING - 0.4%
R.R. Donnelley & Sons Company ............... 11,000 317,625
TELECOMMUNICATION - LONG DISTANCE - 1.9%
AT&T Corporation ............................ 37,500 1,631,250
TELEPHONE - 1.4%
GTE Corporation ............................. 16,000 1,230,000
TEXTILES - APPAREL - 0.4%
VF Corporation .............................. 10,000 310,000
TOBACCO - 2.1%
R.J. Reynolds Tobacco Holdings, Inc. ........ 40,000 1,080,000
UST, Inc. ................................... 24,000 724,500
------------
1,804,500
TRUCKING - 0.0%
Werner Enterprises, Inc. .................... 2,000 35,250
------------
Total common stocks - 94.1%........................... 79,888,456
------------
Total investments - 95.5%............................. 81,063,037
Cash and other assets, less liabilities - 4.5% 3,858,676
------------
Total net assets - 100.0%............................. $ 84,921,713
============
</TABLE>
See accompanying notes.
- ---------------------------------------------------------------------------
26
<PAGE> 27
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Equity Series
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE - 0.4%
General Dynamics Corporation .............. 60,000 $ 3,746,250
AIRLINES - 0.1%
Southwest Airlines Company ................ 100,000 1,518,750
BANKS - MAJOR REGIONAL - 3.7%
Bank of New York Company, Inc. ............ 400,000 13,375,000
Northern Trust Corporation ................ 200,000 16,700,000
Wells Fargo Company ....................... 240,000 9,510,000
-----------
39,585,000
BANKS - MONEY CENTER - 1.3%
Chase Manhattan Corporation ............... 190,000 14,321,250
BEVERAGES - ALCOHOLIC - 1.0%
Anheuser-Busch Companies, Inc. ............ 150,000 10,509,375
BROADCAST MEDIA - 1.2%
AMFM, Inc.* ............................... 210,000 12,770,625
BUILDING MATERIALS - 1.0%
Masco Corporation ......................... 350,000 10,850,000
CHEMICALS - SPECIALTY - 1.0%
Ecolab, Inc. .............................. 320,000 10,920,000
COMMUNICATION EQUIPMENT - 2.3%
Lucent Technologies, Inc. ................. 225,000 14,596,875
Nortel Networks Corporation ............... 125,000 6,375,000
Tellabs, Inc.* ............................ 70,000 3,985,625
-----------
24,957,500
COMPUTER HARDWARE - 3.5%
Dell Computer Corporation* ................ 170,000 7,108,125
International Business Machines
Corporation ............................. 120,000 14,565,000
Sun Microsystems, Inc.* ................... 170,000 15,810,000
-----------
37,483,125
COMPUTERS - NETWORKING - 1.9%
Cisco Systems, Inc.* ...................... 300,000 20,568,750
COMPUTER SOFTWARE/SERVICES - 6.4%
America Online, Inc.* ..................... 60,000 6,240,000
BMC Software, Inc.* ....................... 235,000 16,817,188
Computer Sciences Corporation* ............ 190,000 13,359,375
Microsoft Corporation* .................... 360,000 32,602,500
-----------
69,019,063
DISTRIBUTION - FOOD & HEALTH - 1.0%
Cardinal Health, Inc. ..................... 200,000 10,900,000
ELECTRICAL EQUIPMENT - 3.1%
Emerson Electric Company .................. 150,000 9,478,125
General Electric Company .................. 200,000 23,712,500
-----------
33,190,625
ELECTRONICS - SEMICONDUCTORS - 2.1%
Intel Corporation ......................... 250,000 18,578,125
Texas Instruments, Inc. ................... 50,000 4,112,500
-----------
22,690,625
ENTERTAINMENT - 0.9%
Time Warner, Inc. ......................... 160,000 9,720,000
FINANCIAL - DIVERSE - 3.5%
American Express Company .................. 30,000 4,038,750
Citigroup, Inc. ........................... 120,000 5,280,000
Fannie Mae ................................ 230,000 14,418,125
Freddie Mac ............................... 270,000 14,040,000
-----------
37,776,875
FOODS - 1.7%
Bestfoods ................................. 240,000 11,640,000
ConAgra, Inc. ............................. 320,000 7,220,000
-----------
18,860,000
HEALTH CARE - DIVERSE - 4.5%
American Home Products_Corporation ........ 260,000 10,790,000
Bristol-Myers Squibb Company .............. 235,000 15,862,500
Johnson & Johnson ......................... 120,000 11,025,000
Warner-Lambert Company .................... 160,000 10,620,000
-----------
48,297,500
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.8%
Leggett & Platt, Inc. ..................... 461,000 9,075,937
HOUSEHOLD PRODUCTS - 2.2%
Colgate-Palmolive Company ................. 200,000 9,150,000
Procter & Gamble Company .................. 150,000 14,062,500
-----------
23,212,500
INSURANCE - LIFE/HEALTH - 1.6%
American General Corporation .............. 150,000 9,478,125
Protective Life Corporation ............... 250,000 7,250,000
-----------
16,728,125
INSURANCE - MULTILINE - 3.1%
American International Group, Inc. ........ 187,500 16,300,781
Hartford Financial Services
Group, Inc. ............................ 165,000 6,744,375
Lincoln National Corporation .............. 270,000 10,141,875
-----------
33,187,031
LODGING - HOTELS - 1.4%
Carnival Corporation ...................... 340,000 14,790,000
MACHINERY - DIVERSE - 0.2%
Deere & Company ........................... 55,000 2,127,813
</TABLE>
See accompanying notes.
- ---------------------------------------------------------------------------
27
<PAGE> 28
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Equity Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - DIVERSIFIED - 5.4%
AlliedSignal, Inc. ....................... 285,000 $ 17,082,188
Illinois Tool Works, Inc. ................ 15,000 1,118,438
Textron, Inc. ............................ 105,000 8,124,375
Tyco International, Ltd. ................. 180,000 18,585,000
United Technologies Corporation .......... 230,000 13,641,875
--------------
58,551,876
MEDICAL PRODUCTS & SUPPLIES - 3.6%
Baxter International, Inc. ............... 200,000 12,050,000
Becton, Dickinson & Company .............. 230,000 6,454,375
Boston Scientific Corporation* ........... 270,000 6,665,625
Medtronic, Inc. .......................... 400,000 14,200,000
--------------
39,370,000
NATURAL GAS - 3.4%
Coastal Corporation ...................... 340,000 13,918,750
El Paso Energy Corporation ............... 300,000 11,943,750
Williams Companies, Inc. ................. 300,000 11,231,250
--------------
37,093,750
OFFICE EQUIPMENT & SUPPLIES - 1.0%
Pitney Bowes, Inc. ....................... 175,000 10,664,062
OIL - DOMESTIC - 0.5%
Conoco, Inc. (Cl.A) ...................... 200,000 5,550,000
OIL - INTERNATIONAL - 3.3%
Chevron Corporation ...................... 110,000 9,762,500
Mobil Corporation ........................ 140,000 14,105,000
Royal Dutch Petroleum
Company ADR ........................... 200,000 11,812,500
--------------
35,680,000
PHARMACEUTICALS - MAJOR - 3.4%
Elan Corporation PLC ADR* ................ 360,000 12,082,500
Merck & Company, Inc. .................... 45,000 2,916,563
Schering-Plough Corporation .............. 340,000 14,832,500
SmithKline Beecham PLC ADR ............... 125,000 7,203,125
--------------
37,034,688
PHOTOGRAPHY/IMAGING - 0.8%
Xerox Corporation ........................ 200,000 8,387,500
PUBLISHING - 1.0%
McGraw-Hill Companies, Inc. .............. 220,000 10,642,500
PUBLISHING - NEWSPAPER - 2.1%
Gannett Company, Inc. .................... 175,000 12,107,812
Tribune Company .......................... 220,000 10,945,000
--------------
23,052,812
RESTAURANTS - 1.1%
McDonald's Corporation ................... 275,000 11,825,000
RETAIL - APPAREL - 1.1%
TJX Companies, Inc. ...................... 440,000 12,347,500
RETAIL - BUILDING SUPPLIES - 1.1%
Lowe's Companies, Inc. ................... 250,000 12,187,500
RETAIL - DRUG STORES - 1.1%
Walgreen Company ......................... 470,000 11,926,250
RETAIL - FOOD CHAINS - 2.0%
Kroger Company* .......................... 440,000 9,707,500
Safeway, Inc.* ........................... 300,000 11,418,750
--------------
21,126,250
RETAIL - GENERAL MERCHANDISE - 1.9%
Dayton Hudson Corporation ................ 160,000 9,610,000
Wal-Mart Stores, Inc. .................... 240,000 11,415,000
--------------
21,025,000
SERVICES - ADVERTISING/MARKETING - 1.4%
Omnicom Group, Inc. ...................... 195,000 15,441,562
SERVICES - COMMERCIAL & CONSUMER - 1.2%
Viad Corporation ......................... 450,000 13,275,000
SERVICES - DATA PROCESSING - 0.9%
First Data Corporation ................... 220,000 9,652,500
TELECOMMUNICATION - CELLULAR - 1.0%
Sprint Corporation (PCS Group)* .......... 150,000 11,184,375
TELECOMMUNICATION - LONG DISTANCE - 3.0%
MCI Worldcom, Inc.* ...................... 200,000 14,375,000
Sprint Corporation (FON Group) ........... 340,000 18,445,000
--------------
32,820,000
TELEPHONE - 3.9%
BellSouth Corporation .................... 125,000 5,625,000
CenturyTel, Inc. ......................... 260,000 10,562,500
GTE Corporation .......................... 170,000 13,068,750
SBC Communications, Inc. ................. 250,000 12,765,625
--------------
42,021,875
--------------
Total common stocks - 94.1% ........................... 1,017,666,719
Cash and other assets,
less liabilities - 5.9% .............................. 63,890,585
--------------
Total net assets - 100.0%.............................. $1,081,557,304
==============
</TABLE>
See accompanying notes.
- ---------------------------------------------------------------------------
28
<PAGE> 29
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Global Series
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA - 0.3%
IRSA Inversiones y
Representaciones S.A ..................... 4,744 $ 133,425
AUSTRALIA - 2.2%
Lihir Gold, Ltd.* ........................... 500,000 548,184
Telestra Corporation, Ltd. .................. 100,000 518,295
----------
1,066,479
BELGIUM - 0.7%
Lernout & Hauspie Speech
Products N.V.* ........................... 10,200 355,725
BRAZIL - 1.4%
Brazil Realty Empreendimente e
Participacoes S.A. GDR* .................. 22,000 280,733
Tele Norte Leste Participacoes S.A.* ........ 25,362,000 405,528
----------
686,261
CANADA - 0.9%
Bombardier, Inc. ............................ 27,700 458,996
CROATIA - 0.6%
Pliva d.d GDR ............................... 29,100 308,303
FINLAND - 0.8%
Nokia Oyj ADR ............................... 4,500 404,156
FRANCE - 9.2%
Alcatel ..................................... 4,700 647,712
AXA ......................................... 3,040 384,627
Canal Plus .................................. 13,100 782,679
Cap Gemini S.A .............................. 4,100 646,242
Genset ADR* ................................. 29,800 376,225
Sidel S.A ................................... 2,200 223,991
Societe BIC S.A ............................. 10,400 507,502
Societe Television Francaise 1 .............. 2,000 559,551
Vivendi ..................................... 5,511 387,075
----------
4,515,604
GERMANY - 10.9%
Fresenius AG ................................ 5,050 881,495
Porsche AG .................................. 600 1,626,255
ProSieben Media AG .......................... 8,725 382,836
Rhoen-Klinikum AG ........................... 5,050 613,658
Volkswagen AG ............................... 18,300 1,029,046
Wella AG .................................... 28,612 828,832
----------
5,362,122
GREECE - 0.8%
Hellenic Telecommunications
Organization S.A ......................... 16,800 392,065
HONG KONG - 0.3%
Television Broadcasts, Ltd. ................. 34,000 145,318
INDIA - 2.3%
ICICI, Ltd. GDR ............................. 39,500 471,235
ICICI, Ltd. 144A GDR ........................ 25,900 308,987
Videsh Sanchar Nigam, Ltd. GDR .............. 25,000 351,750
----------
1,131,972
IRELAND - 1.1%
Elan Corporation PLC ADR* ................... 16,300 547,069
ITALY - 2.0%
Bulgari SpA ................................. 35,100 261,297
Telecom Italia Mobile SpA ................... 81,100 504,409
Unicredito Italiano SpA ..................... 46,300 226,331
----------
992,037
JAPAN - 4.4%
Credit Saison Company, Ltd. ................. 12,600 293,491
Eisai Company, Ltd. ......................... 22,000 557,904
Hoya Corporation ............................ 2,000 120,973
Nichiei Company, Ltd. ....................... 1,300 99,512
Nintendo Company, Ltd. ...................... 1,000 159,481
NTT Mobile Communications
Network, Inc. ............................ 28 552,268
Taisho Pharmaceutical
Company, Ltd. ............................ 9,000 378,698
----------
2,162,327
LEBANON - 0.4%
SOLIDERE GDR* ............................... 24,600 195,078
MEXICO - 0.8%
Grupo Televisa S.A. GDR* .................... 9,500 379,406
NETHERLANDS - 6.1%
Aegon NV .................................... 5,000 430,260
Getronics NV ................................ 17,900 965,566
Koninklijke Philips Electronics NV .......... 7,360 740,729
STMicroelectronics NV ....................... 11,800 873,200
----------
3,009,755
POLAND - 0.7%
Agora S.A. GDR* ............................. 38,000 326,800
PORTUGAL - 0.4%
Portugal Telecom S.A ........................ 5,100 212,263
SINGAPORE - 1.1%
Dairy Farm International Holdings, Ltd. ..... 310,000 308,450
Singapore Press Holdings, Ltd. .............. 12,900 203,305
----------
511,755
SWEDEN - 0.8%
Autoliv, Inc. ............................... 10,200 384,460
</TABLE>
See accompanying notes.
- ---------------------------------------------------------------------------
29
<PAGE> 30
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Global Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND - 0.3%
Adecco S.A .................................. 225 $ 125,800
UNITED KINGDOM - 8.7%
Allied Zurich PLC ........................... 36,600 424,950
BP Amoco PLC ADR ............................ 1,700 188,381
Cadbury Schweppes PLC ....................... 85,200 592,133
Dixons Group PLC ............................ 19,000 340,447
Glaxo Wellcome PLC ADR ...................... 4,200 218,400
Hanson PLC .................................. 55,500 428,223
Reed International PLC ...................... 56,200 338,523
Rentokil Initial PLC ........................ 113,200 399,890
Royal Bank of Scotland Group PLC ............ 11,400 244,822
Telewest Communications PLC* ................ 46,000 170,833
WPP Group PLC ............................... 97,400 901,493
-----------
4,248,095
UNITED STATES - 34.1%
Affymetrix, Inc.* ........................... 4,800 472,500
American Express Company .................... 3,700 498,112
American International Group, Inc. .......... 2,300 199,956
Amgen, Inc.* ................................ 5,600 456,400
Associates First Capital Corporation ........ 4,600 165,600
C.R. Bard, Inc. ............................. 5,500 258,844
Cadence Design Systems, Inc.* ............... 47,500 629,375
Cardinal Health, Inc. ....................... 3,300 179,850
Circuit City Stores-Circuit City Group ...... 10,400 438,750
Cisco Systems, Inc.* ........................ 9,400 644,487
Fannie Mae .................................. 7,400 463,887
Genzyme Corporation* ........................ 6,800 306,425
Gilead Sciences, Inc.* ...................... 6,700 430,056
Goldman Sachs Group, Inc. ................... 600 36,600
Hasbro, Inc. ................................ 15,400 330,137
International Business Machines
Corporation .............................. 6,500 788,938
International Flavors &
Fragrances, Inc. ......................... 15,400 531,300
International Game Technology ............... 19,400 349,200
Lehman Brothers Holdings, Inc. .............. 8,000 466,500
Manpower, Inc. .............................. 9,100 265,038
MCI WorldCom, Inc.* ......................... 4,800 345,000
Millennium Pharmaceuticals, Inc.* ........... 7,700 500,500
Morgan Stanley Dean Witter
& Company ................................ 600 53,513
National Semiconductor
Corporation* ............................. 42,200 1,287,100
Oracle Corporation* ......................... 12,300 559,650
QUALCOMM, Inc.* ............................. 16,600 3,140,513
Quintiles Transnational
Corporation* ............................. 16,100 306,403
Scientific-Atlanta, Inc. .................... 16,600 822,738
Sun Microsystems, Inc.* ..................... 15,300 1,422,900
Synopsys, Inc.* ............................. 3,400 190,931
Walt Disney Company ......................... 7,700 199,237
-----------
16,740,440
-----------
Total common stocks - 91.3% .......................... 44,795,711
Cash and other assets,
less liabilities - 8.7% ............................ 4,289,468
-----------
Total net assets - 100% ............................ $49,085,179
===========
<CAPTION>
INVESTMENT CONCENTRATION
- ------------------------
<S> <C>
At September 30, 1999, Global Series' investment concentration,
by industry, was as follows:
Advertising ................................................. 1.8%
Apparel ..................................................... 0.5%
Auto Parts & Supplies ....................................... 0.8%
Automobiles ................................................. 5.4%
Banks & Credit .............................................. 1.0%
Broadcast Media ............................................. 4.6%
Building & Construction ..................................... 0.9%
Communications .............................................. 6.4%
Computer Software ........................................... 1.3%
Computer Systems ............................................ 8.7%
Cosmetics ................................................... 1.7%
Drugs ....................................................... 5.6%
Electronics ................................................. 4.2%
Entertainment ............................................... 1.8%
Environmental ............................................... 1.1%
Financial Services .......................................... 5.8%
Food Wholesalers ............................................ 1.6%
Health Care ................................................. 5.8%
Household Products .......................................... 1.1%
Industrial Services ......................................... 0.8%
Insurance ................................................... 2.9%
Machinery ................................................... 0.5%
Manufacturing ............................................... 0.9%
Medical ..................................................... 2.0%
Office Equipment ............................................ 1.0%
Oil ......................................................... 0.4%
Publishing .................................................. 1.4%
Real Estate Development ..................................... 1.2%
Retail ...................................................... 2.2%
Semiconductors .............................................. 4.7%
Services .................................................... 1.6%
Telecommunications .......................................... 11.3%
Toys & Sporting Goods ....................................... 0.3%
Cash, short-term instruments
and other assets, less liabilities ....................... 8.7%
-----
100.0%
=====
</TABLE>
See accompanying notes.
- ---------------------------------------------------------------------------
30
<PAGE> 31
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Total Return Series
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE - 1.3%
General Dynamics Corporation ................... 1,450 $ 90,534
BANKS - MAJOR REGIONAL - 1.8%
Bank of New York Company, Inc. ................. 4,000 133,750
BANKS - MONEY CENTER - 3.7%
Bank of America Corporation .................... 2,200 122,513
Chase Manhattan Corporation .................... 1,900 143,212
--------
265,725
BEVERAGES - ALCOHOLIC - 1.5%
Anheuser-Busch Companies, Inc. ................. 1,500 105,094
BROADCAST MEDIA - 2.0%
Clear Channel Communications, Inc.*............. 1,825 145,772
BUILDING MATERIALS - 0.5%
Masco Corporation .............................. 1,250 38,750
COMMUNICATIONS EQUIPMENT - 3.6%
Lucent Technologies, Inc. ...................... 1,350 87,581
Nortel Networks Corporation .................... 2,000 102,000
Tellabs, Inc.* ................................. 1,200 68,325
--------
257,906
COMPUTER HARDWARE - 2.0%
International Business Machines
Corporation ................................. 1,200 145,650
COMPUTER SOFTWARE/SERVICES - 6.2%
America Online, Inc.* .......................... 675 70,200
BMC Software, Inc.* ............................ 2,300 164,594
Microsoft Corporation* ......................... 2,400 217,350
--------
452,144
COMPUTERS - NETWORKING - 1.4%
Cisco Systems, Inc.* ........................... 1,450 99,416
COMPUTERS - PERIPHERALS - 2.9%
EMC Corporation* ............................... 1,400 100,012
Lexmark International Group, Inc.* ............. 1,400 112,700
--------
212,712
CONSUMER FINANCE - 1.8%
Household International, Inc. .................. 3,200 128,400
DISTRIBUTION - FOOD & HEALTH - 1.7%
Cardinal Health, Inc. .......................... 2,200 119,900
ELECTRONICS - SEMICONDUCTORS - 2.3%
Intel Corporation .............................. 2,250 167,203
ENTERTAINMENT - 1.8%
Seagram Company, Ltd. .......................... 2,800 127,400
ELECTRICAL EQUIPMENT - 2.9%
General Electric Company ....................... 1,800 213,412
EQUIPMENT - SEMICONDUCTORS - 1.4%
Applied Materials, Inc.* ....................... 1,300 101,237
FINANCIAL - DIVERSE - 1.8%
Fannie Mae ..................................... 2,100 131,644
FOODS - 1.6%
Bestfoods, Inc. ................................ 2,350 113,975
FOOTWEAR - 1.1%
Nike, Inc. (Cl.B) .............................. 1,400 79,625
HEALTH CARE - DIVERSE - 3.7%
Abbott Laboratories ............................ 3,300 121,275
Bristol-Myers Squibb Company ................... 2,200 148,500
--------
269,775
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.4%
Leggett & Platt, Inc. .......................... 1,600 31,500
HOUSEHOLD PRODUCTS - 3.8%
Colgate-Palmolive Company ...................... 2,750 125,812
Dial Corporation ............................... 1,850 47,175
Procter & Gamble Company ....................... 1,100 103,125
--------
276,112
INSURANCE - LIFE/HEALTH - 3.4%
American General Corporation ................... 2,100 132,694
Protective Life Corporation .................... 4,000 116,000
--------
248,694
INSURANCE - MULTILINE - 1.9%
American International Group, Inc. ............. 1,625 141,273
MANUFACTURING - DIVERSIFIED - 2.1%
Tyco International, Ltd. ....................... 1,450 149,712
MEDICAL PRODUCTS & SUPPLIES - 5.7%
Baxter International, Inc. ..................... 2,300 138,575
Guidant Corporation ............................ 2,600 139,425
Medtronic, Inc. ................................ 3,800 134,900
--------
412,900
OFFICE EQUIPMENT & SUPPLIES - 1.8%
Pitney Bowes, Inc. ............................. 2,200 134,063
PHARMACEUTICALS - MAJOR - 2.7%
Merck & Company, Inc. .......................... 1,100 71,294
Schering-Plough Corporation .................... 2,800 122,150
--------
193,444
PUBLISHING - NEWSPAPER - 3.8%
Gannett Company, Inc. .......................... 2,100 145,294
Tribune Company ................................ 2,650 131,837
--------
277,131
</TABLE>
See accompanying notes.
- -----------------------------------------------------------------------------
31
<PAGE> 32
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Total Return Series (continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
RESTAURANTS - 1.1%
McDonald's Corporation ........................... 1,800 $ 77,400
RETAIL - BUILDING SUPPLIES - 1.6%
Lowe's Companies, Inc. ........................... 2,400 117,000
RETAIL - DRUG STORES - 2.1%
Walgreen Company ................................. 5,900 149,713
RETAIL - FOOD CHAINS - 3.3%
Kroger Company* .................................. 5,600 123,550
Safeway, Inc.* ................................... 3,000 114,188
----------
237,738
RETAIL - GENERAL MERCHANDISE - 4.0%
Dayton Hudson Corporation ........................ 2,300 138,144
Wal-Mart Stores, Inc. ............................ 3,200 152,200
----------
290,344
RETAIL - SPECIALTY - 1.5%
Staples, Inc.* ................................... 4,925 107,427
SERVICES - ADVERTISING/MARKETING - 2.3%
Omnicom Group, Inc. .............................. 2,100 166,294
SERVICES - COMMERCIAL & CONSUMER - 2.0%
Viad Corporation ................................. 5,000 147,500
TELECOMMUNICATION - LONG DISTANCE - 3.0%
MCI WorldCom, Inc.* .............................. 1,700 122,187
Sprint Corporation (FON Group) ................... 1,700 92,225
----------
214,412
TELEPHONE - 5.1%
BellSouth Corporation ............................ 3,400 153,000
Centurytel, Inc. ................................. 1,850 75,156
SBC Communications, Inc. ......................... 2,800 142,975
----------
371,131
----------
Total common stocks - 98.6% ............................ 7,143,812
MONEY MARKET FUND - 1.4%
Chase Master Note Program ................... $102,394 102,394
----------
Total investments - 100.0% ............................. 7,246,206
Cash and other assets, less liabilities - 0.0% ......... 1,093
----------
Total net assets - 100% ................................ $7,247,299
==========
<CAPTION>
Security Equity Fund - Social Awareness Series
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AIR FREIGHT - 0.2%
FDX Corporation* ................................ 1,000 $ 38,750
AIRLINES - 0.4%
Southwest Airlines Company ...................... 5,900 89,606
ALUMINUM - 0.5%
Alcoa, Inc. ..................................... 1,900 117,919
AUTO PARTS & EQUIPMENT - 0.5%
Dana Corporation ................................ 3,100 115,087
BANKS - MAJOR REGIONAL - 4.1%
Bank of New York Company, Inc. .................. 6,400 214,000
Northern Trust Corporation ...................... 2,800 233,800
PNC Bank Corporation ............................ 2,600 136,987
Wachovia Corporation ............................ 1,300 102,213
Wells Fargo Company ............................. 6,500 257,562
----------
944,562
BANKS - MONEY CENTER - 2.0%
Bank of America Corporation ..................... 4,500 250,594
Chase Manhattan Corporation ..................... 2,600 195,975
----------
446,569
BEVERAGES - SOFT DRINK - 1.5%
Coca-Cola Company ............................... 5,300 254,731
PepsiCo, Inc. ................................... 3,300 99,825
----------
354,556
BROADCAST MEDIA - 1.3%
AMFM, Inc.* ..................................... 1,800 109,462
Comcast Corporation (Cl.A) ...................... 5,000 199,375
----------
308,837
CHEMICALS - BASIC - 0.8%
Praxair, Inc. ................................... 4,000 184,000
CHEMICALS - SPECIALTY - 0.6%
H.B. Fuller Company ............................. 2,200 133,925
COMMUNICATIONS - EQUIPMENT - 3.7%
ADC Telecommunications, Inc.* ................... 4,800 201,300
Comverse Technology, Inc.* ...................... 2,250 212,203
Lucent Technologies, Inc. ....................... 2,310 149,861
Scientific Atlanta, Inc. ........................ 3,100 153,644
Tellabs, Inc.* .................................. 2,400 136,650
----------
853,658
COMPUTER SOFTWARE/SERVICES - 7.7%
Adobe Systems, Inc. ............................. 1,700 192,950
Affiliated Computer Services, Inc.* ............ 3,100 125,938
American Management Systems, Inc.*............... 4,600 118,019
Compuware Corporation* .......................... 6,900 179,831
Microsoft Corporation* .......................... 12,600 1,141,087
----------
1,757,825
</TABLE>
See accompanying notes.
- ----------------------------------------------------------------------------
32
<PAGE> 33
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Social Awareness Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE - 3.5%
Compaq Computer Corporation ................... 5,300 $ 121,569
Hewlett-Packard Company ....................... 2,500 230,000
International Business Machines
Corporation ................................ 3,800 461,225
----------
812,794
COMPUTERS - NETWORKING - 2.6%
Cisco Systems, Inc.* .......................... 8,650 593,066
COMPUTERS - PERIPHERALS - 1.0%
EMC Corporation* .............................. 3,200 228,600
CONSUMER FINANCE - 0.6%
Household International, Inc. ................. 3,200 128,400
DISTRIBUTION - FOOD & HEALTH - 0.6%
Cardinal Health, Inc. ......................... 2,675 145,788
ELECTRICAL EQUIPMENT - 4.2%
Cooper Industries, Inc. ....................... 4,400 205,700
Emerson Electric Company ...................... 3,600 227,475
Hubbell, Inc. (Cl.B) .......................... 2,200 70,125
Molex, Inc. ................................... 5,200 189,150
Thomas & Betts Corporation .................... 5,100 260,100
----------
952,550
ELECTRONICS - SEMICONDUCTORS - 5.5%
Analog Devices, Inc.* ......................... 3,200 164,000
Intel Corporation ............................. 10,600 787,713
Micron Technology, Inc. ....................... 1,400 93,187
Texas Instruments, Inc. ....................... 1,200 98,700
Xilinx, Inc.* ................................. 1,800 117,956
----------
1,261,556
ENGINEERING & CONSTRUCTION - 0.4%
Granite Construction, Inc. .................... 3,800 99,038
ENTERTAINMENT - 2.4%
Time Warner, Inc. ............................. 3,400 206,550
Viacom, Inc., (Cl.B) .......................... 5,200 219,700
Walt Disney Company ........................... 5,000 129,375
----------
555,625
FINANCIAL - DIVERSE - 3.0%
American Express Company ...................... 1,600 215,400
Fannie Mae .................................... 3,500 219,406
Finova Group, Inc. ............................ 2,800 102,200
Freddie Mac ................................... 3,100 161,200
----------
698,206
FOODS - 1.6%
Bestfoods ..................................... 2,500 121,250
General Mills, Inc. ........................... 1,500 121,687
Kellogg Company ............................... 3,200 119,800
----------
362,737
HARDWARE & TOOLS - 0.4%
Black & Decker Corporation .................... 1,800 82,238
HEALTH CARE - DIVERSE - 2.7%
Allergan, Inc. ................................ 1,300 143,000
Johnson & Johnson ............................. 5,200 477,750
----------
620,750
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.6%
Leggett & Platt, Inc. ......................... 6,800 133,875
HOUSEHOLD PRODUCTS - 2.9%
Clorox Company ................................ 2,800 107,100
Colgate-Palmolive Company ..................... 1,600 73,200
Kimberly-Clark Corporation .................... 2,000 105,000
Procter & Gamble Company ...................... 4,000 375,000
----------
660,300
INSURANCE - LIFE/HEALTH - 0.7%
American General Corporation .................. 2,500 157,969
INSURANCE - MULTILINE - 2.4%
American International Group, Inc. ............ 6,387 555,270
INSURANCE - PROPERTY & CASUALTY - 0.6%
Chubb Corporation ............................. 2,900 144,456
LEISURE TIME PRODUCTS - 0.3%
Mattel, Inc. .................................. 3,700 70,300
MACHINERY - DIVERSE - 2.4%
Case Corporation .............................. 5,700 283,931
Deere & Company ............................... 3,400 131,537
Milacron, Inc. ................................ 7,200 127,800
----------
543,268
MANUFACTURING - DIVERSIFIED - 0.8%
Illinois Tool Works, Inc. ..................... 2,300 171,494
MANUFACTURING - SPECIALIZED - 0.6%
Avery Dennison Corporation .................... 2,500 131,875
MEDICAL PRODUCTS & SUPPLIES - 1.7%
Boston Scientific Corporation* ................ 2,600 64,188
Guidant Corporation* .......................... 3,200 171,600
Medtronic, Inc. ............................... 4,400 156,200
----------
391,988
OFFICE EQUIPMENT & SUPPLIES - 0.5%
Pitney Bowes, Inc. ............................ 1,800 109,688
OIL - DOMESTIC - 1.1%
Atlantic Richfield Company .................... 2,900 257,013
OIL - INTERNATIONAL - 1.0%
BP Amoco PLC ADR............................... 2,014 223,176
</TABLE>
See accompanying notes.
- ------------------------------------------------------------------------------
33
<PAGE> 34
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Social Awareness Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
OIL & GAS - DRILLING & EQUIPMENT - 1.7%
BJ Services Company* ........................ 6,500 $ 206,781
Noble Drilling Corporation* ................. 5,700 124,687
Smith International, Inc.* .................. 1,300 52,650
-----------
384,118
OIL & GAS - EXPLORATION PRODUCTION - 2.1%
Anadarko Petroleum Corporation .............. 5,500 168,094
Apache Corporation .......................... 7,400 319,588
-----------
487,682
PAPER & FOREST PRODUCTS - 1.2%
Mead Corporation ............................ 4,300 147,813
Westvaco Corporation ........................ 4,900 125,562
-----------
273,375
PERSONAL CARE - 0.5%
Gillette Company ............................ 3,500 118,781
PHARMACEUTICALS - MAJOR - 3.6%
Merck & Company, Inc. ....................... 9,100 589,794
Schering-Plough Corporation ................. 5,300 231,212
-----------
821,006
PHOTOGRAPHY/IMAGING - 0.4%
Xerox Corporation ........................... 2,400 100,650
PUBLISHING - 0.4%
McGraw-Hill Companies, Inc. ................. 1,800 87,075
PUBLISHING - NEWSPAPER - 0.5%
New York Times Company ...................... 3,100 116,250
RESTAURANTS - 0.8%
McDonald's Corporation ...................... 4,200 180,600
RETAIL - APPAREL - 1.2%
TJX Companies, Inc. ......................... 5,200 145,925
Talbots, Inc. ............................... 3,000 134,812
-----------
280,737
RETAIL - BUILDING SUPPLIES - 1.3%
Lowe's Companies, Inc. ...................... 6,300 307,125
RETAIL - DEPARTMENT STORES - 0.5%
Kohl's Corporation* ......................... 1,600 105,800
RETAIL - DISCOUNTERS - 0.9%
Family Dollar Stores, Inc. .................. 10,000 211,250
RETAIL - DRUG STORES - 0.7%
CVS Corporation ............................. 3,800 155,087
RETAIL - FOOD CHAINS - 0.6%
Kroger Company* ............................. 6,000 132,375
RETAIL - GENERAL MERCHANDISE - 0.9%
Dayton Hudson Corporation ................... 3,500 $ 210,219
SAVINGS & LOAN - 0.2%
Washington Mutual, Inc. ..................... 1,680 49,140
SERVICES - ADVERTISING/MARKETING - 0.9%
Omnicom Group, Inc. ......................... 2,600 205,888
SERVICES - DATA PROCESSING - 0.6%
Paychex, Inc. ............................... 4,200 143,325
TELECOMMUNICATIONS - CELLULAR - 0.8%
Sprint Corporation (PCS Group)* ............. 2,450 182,678
TELECOMMUNICATIONS - LONG DISTANCE - 2.8%
AT&T Corporation ............................ 9,244 402,114
MCI WorldCom, Inc.* ......................... 1,700 122,187
Sprint Corporation (FON Group) .............. 2,200 119,350
-----------
643,651
TELEPHONE - 5.0%
Ameritech Corporation ....................... 3,000 201,563
Bell Atlantic Corporation ................... 5,900 397,144
Bellsouth Corporation ....................... 5,000 225,000
SBC Communications, Inc. .................... 6,500 331,907
-----------
1,155,614
-----------
Total common stocks - 95.0% ............................. 21,789,740
Cash and other assets,
less liabilities - 5.0% ............................... 1,153,120
-----------
Total net assets - 100.0% ............................... $22,942,860
===========
<CAPTION>
Security Equity Fund - Value Series
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AUTO PARTS & EQUIPMENT - 0.3%
Motorcar Parts & Accessories, Inc.* ......... 50,000 $ 106,000
BANKS - MAJOR REGIONAL - 1.1%
BankBoston Corporation ...................... 5,300 229,887
Northern Trust Corporation .................. 1,600 133,600
-----------
363,487
BIOTECHNOLOGY - 0.6%
Ligand Pharmaceuticals, Inc. (Cl.B)* ........ 26,000 198,250
CHEMICALS - BASIC - 1.7%
Solutia, Inc. ............................... 32,200 575,575
</TABLE>
See accompanying notes.
- ------------------------------------------------------------------------------
34
<PAGE> 35
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Value Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS - SPECIALTY - 0.8%
Material Sciences Corporation* ............... 21,000 $ 279,562
COMMUNICATION EQUIPMENT - 3.2%
Comverse Technology, Inc.* ................... 8,000 754,500
Protection One, Inc.* ........................ 68,000 272,000
Transcrypt International, Inc.* .............. 25,000 48,438
----------
1,074,938
COMPUTER HARDWARE - 0.7%
Silicon Graphics, Inc.* ...................... 22,000 240,625
COMPUTER SOFTWARE/SERVICES - 8.6%
AXENT Technologies, Inc.* .................... 30,000 388,125
Computer Sciences Corporation* ............... 8,800 618,750
JDA Software Group, Inc.* .................... 70,000 818,125
Mediconsult.Com, Inc.* ....................... 66,000 511,500
Rational Software Corporation* ............... 12,000 351,375
Unova, Inc.* ................................. 15,300 204,637
----------
2,892,512
ELECTRICAL EQUIPMENT - 4.4%
Benchmark Electronics, Inc.* ................. 17,000 600,312
Maxwell Technologies, Inc.* .................. 67,000 879,375
----------
1,479,687
ELECTRIC COMPANIES - 1.8%
Western Resources, Inc. ...................... 28,600 611,325
ELECTRONICS - INSTRUMENTATION - 1.0%
E G & G, Inc. ................................ 8,700 346,369
ELECTRONICS - SEMICONDUCTORS - 0.7%
S3, Inc.* .................................... 23,700 247,369
FOODS - 4.4%
Agribrands International, Inc.* .............. 16,400 813,850
Hormel Foods Corporation ..................... 16,000 661,000
----------
1,474,850
GAMING & LOTTERY - 1.3%
Mandalay Resort Group* ....................... 22,000 434,500
HEALTH CARE - SPECIALIZED SERVICES - 2.5%
CryoLife, Inc.* .............................. 66,000 825,000
HOSPITAL MANAGEMENT - 2.3%
Columbia/HCA Healthcare
Corporation ............................... 14,100 298,744
Tenet Healthcare Corporation* ................ 27,000 474,188
----------
772,932
INSURANCE - LIFE/HEALTH - 1.9%
AFLAC, Inc. .................................. 12,000 $ 502,500
UnumProvident Corporation .................... 5,000 147,187
----------
649,687
INSURANCE - PROPERTY & CASUALTY - 1.0%
Horace Mann Educators Corporation ............ 13,000 335,563
INVESTMENT BANK/BROKERAGE - 2.4%
Goldman Sachs Group, Inc. .................... 8,000 488,000
Legg Mason, Inc. ............................. 8,000 306,500
----------
794,500
LEISURE TIME PRODUCTS - 3.2%
Hasbro, Inc. ................................. 19,500 418,031
Midway Games, Inc.* .......................... 42,000 661,500
----------
1,079,531
MANUFACTURING - DIVERSIFIED - 1.1%
AEP Industries, Inc.* ........................ 10,200 377,400
MANUFACTURING - SPECIALIZED - 1.5%
Brady Corporation (Cl.A) ..................... 16,000 512,000
MEDICAL PRODUCTS & SUPPLIES - 1.2%
Sunrise Medical, Inc.* ....................... 70,000 420,000
NATURAL GAS - 2.3%
KN Energy, Inc. .............................. 35,000 785,313
OIL - DOMESTIC - 1.2%
Transmontaigne, Inc.* ........................ 26,500 397,500
OIL - INTERNATIONAL - 2.8%
Tesoro Petroleum Corporation* ................ 57,100 942,150
OIL & GAS - DRILLING & EQUIPMENT - 3.7%
BJ Services Company* ......................... 24,000 763,500
ENSCO International, Inc. .................... 27,000 487,688
----------
1,251,188
OIL & GAS - EXPLORATION & PRODUCTION - 13.1%
Anadarko Petroleum Corporation ............... 17,000 519,562
Apache Corporation ........................... 12,000 518,250
Burlington Resources, Inc. ................... 14,000 514,500
Callon Petroleum Company* .................... 28,000 427,000
Chieftain International, Inc.* ............... 39,000 736,125
Evergreen Resources, Inc.* ................... 15,000 360,938
Murphy Oil Corporation ....................... 13,000 702,812
Ocean Energy, Inc.* .......................... 60,000 611,250
----------
4,390,437
PUBLISHING - NEWSPAPER - 1.0%
E.W. Scripps Company (Cl.A) .................. 7,000 343,875
</TABLE>
See accompanying notes.
35
<PAGE> 36
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Value Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS - GENERIC - 1.4%
Noven Pharmaceuticals, Inc.* .................. 56,000 $ 476,000
PHARMACEUTICALS - MAJOR - 4.0%
Mylan Laboratories, Inc. ...................... 24,000 441,000
Teva Pharmaceutical Industries,
Ltd. ADR .................................... 17,800 895,562
-----------
1,336,562
RAILROADS - 2.3%
RailAmerica, Inc.* ............................ 80,000 790,000
RESTAURANTS - 4.0%
Morrison Management
Specialists, Inc. .......................... 28,000 630,000
Sonic Corporation* ............................ 24,000 730,500
-----------
1,360,500
RETAIL - APPAREL - 1.5%
Talbots, Inc. ................................. 11,000 494,313
SERVICES - ADVERTISING MARKETING - 3.7%
Acxiom Corporation* ........................... 39,000 766,594
True North Communications, Inc. ............... 13,100 476,512
-----------
1,243,106
SERVICES - COMMERCIAL & CONSUMER - 6.0%
Angelica Corporation .......................... 76,000 874,000
Cerner Corporation* ........................... 25,000 381,250
Tier Technologies, Inc.* ...................... 110,000 756,250
-----------
2,011,500
SERVICES - COMPUTER SYSTEMS - 0.9%
Comdisco, Inc. ................................ 16,000 309,000
Textiles - Apparel - 3.6%
Kellwood Company .............................. 55,000 1,210,000
Trucking - 0.3%
Motor Cargo Industries, Inc.* ................. 16,200 111,375
-----------
Total common stocks - 99.8% ........................... 33,544,481
Cash and other assets,
less liabilities - 0.2% ............................. 79,388
-----------
Total net assets - 100.0% ............................. $33,623,869
===========
<CAPTION>
Security Equity Fund - Small company Series
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
BIOTECHNOLOGY - 4.0%
Cephalon, Inc.* ............................... 13,500 $ 242,578
Human Genome Sciences, Inc.* .................. 1,400 103,250
Millennium Pharmaceutical* .................... 3,400 221,000
Transkaryotic Therapies, Inc.* ................ 4,500 231,188
-----------
798,016
BROADCAST MEDIA - 1.3%
Acme Communications, Inc.* .................... 2,300 71,300
Cumulus Media, Inc.* .......................... 2,000 65,375
Young Broadcasting, Inc.* ..................... 2,300 120,463
-----------
257,138
COMMUNICATION EQUIPMENT - 8.7%
Aironet Wireless Communications, Inc.* ........ 21,000 441,000
ANTEC Corporation* ............................ 10,000 531,250
Digital Microwave Corporation* ................ 21,000 329,438
Harmonic, Inc.* ............................... 3,100 405,519
Proxim, Inc.* ................................. 1,200 55,200
-----------
1,762,407
COMPUTER HARDWARE - 0.5%
MTI Technology Corporation* ................... 4,500 103,781
COMPUTERS - NETWORKING - 1.5%
Foundry Networks, Inc.* ....................... 1,100 138,600
International Network Services* ............... 3,200 174,000
-----------
312,600
COMPUTER SOFTWARE/SERVICES - 14.3%
Activision, Inc.* ............................. 10,000 176,250
Bluestone Software, Inc.* ..................... 1,700 39,313
BroadVision, Inc.* ............................ 2,000 266,125
Business Objects ADR .......................... 5,500 324,500
Clarify, Inc.* ................................ 6,800 342,125
Electronics for Imaging, Inc.* ................ 6,600 339,281
ITXC Corporation* ............................. 5,200 165,425
Interactive Pictures Corporation* ............. 2,500 53,750
Marimba, Inc.* ................................ 3,100 92,613
Micromuse, Inc.* .............................. 2,500 160,625
Mission Critical Software, Inc.* .............. 3,000 133,500
Packeteer, Inc.* .............................. 1,300 44,281
Peerless Systems Corporation* ................. 4,500 59,625
RSA Security, Inc.* ........................... 11,000 292,187
Verity, Inc.* ................................. 5,700 392,231
-----------
2,881,831
DISTRIBUTION - FOOD & HEALTH - 0.5%
Hain Food Group, Inc.* ........................ 3,800 94,050
</TABLE>
See accompanying notes.
36
<PAGE> 37
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Small Company Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - 1.2%
C-COR.net Corporation* ........................ 4,500 $ 136,687
KEMET Corporation* ............................ 3,500 111,891
----------
248,578
ELECTRONICS - INSTRUMENTATION - 2.9%
Alpha Industries, Inc.* ....................... 5,600 315,875
Sawtek, Inc.* ................................. 7,600 266,000
----------
581,875
ELECTRONICS - SEMICONDUCTORS - 6.8%
Credence Systems Corporation* ................. 5,100 228,863
Cymer, Inc.* .................................. 5,500 190,781
Integrated Device Technology, Inc.* .......... 9,000 166,500
Micrel, Inc.* ................................. 3,600 156,150
PRI Automation, Inc.* ......................... 1,600 57,800
SDL, Inc.* .................................... 2,500 190,781
TranSwitch Corporation* ....................... 6,700 381,900
----------
1,372,775
EQUIPMENT - SEMICONDUCTORS - 2.2%
Etec Systems, Inc.* ........................... 5,600 210,700
Helix Technology Corporation .................. 7,000 232,750
----------
443,450
HEALTH CARE - SPECIALIZED SERVICES - 0.8%
Hooper Holmes, Inc. ........................... 6,500 166,563
HOUSEHOLD PRODUCTS - 1.1%
Church & Dwight Co., Inc. ..................... 8,500 212,500
HOUSEWARES - 0.5%
Salton, Inc.* ................................. 3,500 105,656
INVESTMENT BANK/BROKERAGE - 1.5%
Hambrecht & Quist Group* ...................... 6,200 303,412
LEISURE TIME PRODUCTS - 1.8%
Bally Total Fitness Holding
Corporation* ............................... 6,300 192,544
Midway Games, Inc.* ........................... 10,500 165,375
----------
357,919
MANUFACTURING - SPECIALIZED - 3.2%
Optical Coating Laboratory, Inc. .............. 7,000 644,437
MEDICAL PRODUCTS & SUPPLIES - 2.1%
Varian, Inc.* ................................. 11,500 204,125
Xomed Surgical Products, Inc.* ................ 3,900 222,300
----------
426,425
OFFICE EQUIPMENT & SUPPLIES - 2.2%
Polycom, Inc.* ................................ 9,500 452,734
OIL & GAS - DRILLING & EQUIPMENT - 6.5%
BJ Services Company* .......................... 7,100 225,869
Cooper Cameron Corporation* ................... 2,100 79,275
Core Laboratories NV* ......................... 5,000 94,062
Key Energy Group, Inc.* ....................... 56,500 278,969
Marine Drilling Companies, Inc.* .............. 12,000 189,750
Precision Drilling Corporation* ............... 4,000 92,750
Pride International, Inc.* .................... 18,000 255,375
UTI Energy Corporation* ....................... 4,500 87,469
----------
1,303,519
OIL & GAS - EXPLORATION & PRODUCTION - 5.5%
Helmerich & Payne, Inc. ....................... 7,000 177,187
Louis Dreyfus Natural Gas
Corporation* ............................... 9,600 205,800
Newfield Exploration Company* ................. 4,300 141,631
Pogo Producing Company ........................ 9,500 197,125
Stone Energy Corporation* ..................... 7,500 381,563
----------
1,103,306
PHARMACEUTICALS - GENERIC - 1.0%
King Pharmaceuticals, Inc.* ................... 6,000 210,000
PHARMACEUTICALS - MAJOR - 2.7%
Enzon, Inc.* .................................. 8,700 265,350
QLT PhotoTherapeutics, Inc.* .................. 3,600 275,175
----------
540,525
RESTAURANTS - 3.1%
Applebees International, Inc. ................. 9,000 303,187
CEC Entertainment, Inc.* ...................... 9,000 322,875
----------
626,062
RETAIL - APPAREL - 0.6%
American Eagle Outfitters, Inc.* .............. 2,300 111,406
RETAIL - COMPUTERS & ELECTRONICS - 0.6%
Tweeter Home Entertainment
Group, Inc.* ............................... 3,000 112,125
RETAIL - GENERAL MERCHANDISE - 1.7%
BJ's Wholesale Club, Inc.*..................... 2,000 59,125
Cost Plus, Inc.*............................... 6,000 291,000
----------
350,125
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
37
<PAGE> 38
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Small Company Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
SERVICES - COMMERCIAL & CONSUMER - 5.6%
About.com, Inc.* ............................ 2,800 $ 158,200
Copart, Inc.* ............................... 8,200 151,187
Corporate Executive Board Company* .......... 1,500 61,125
Diamond Technology Partners, Inc.* .......... 2,400 107,700
Exodus Communications, Inc.* ................ 1,000 72,063
National Information Consortium, Inc.* ...... 6,000 148,125
Pre-Paid Legal Services, Inc.* .............. 2,700 106,313
Profit Recovery Group International, Inc.* .. 7,500 334,687
-----------
1,139,400
SERVICES - COMPUTER SYSTEMS - 2.5%
Technology Solutions Company* ............... 11,000 155,375
Whitman-Hart, Inc.* ......................... 9,000 349,031
-----------
504,406
SERVICES - DATA PROCESSING - 0.8%
Iron Mountain, Inc.* ........................ 4,700 159,213
TELECOMMUNICATION - CELLULAR - 4.8%
Pinnacle Holdings, Inc.* .................... 11,000 287,375
Powerwave Technologies, Inc.* ............... 7,800 376,106
Research in Motion, Ltd.* ................... 10,200 315,563
-----------
979,044
TELECOMMUNICATION - LONG DISTANCE - 1.5%
Powertel, Inc.* ............................. 5,600 308,350
TELEPHONE - 1.3%
NEXTLINK Communications, Inc.* .............. 5,200 269,588
-----------
Total common stocks - 95.3% ............................ 19,243,216
Cash and other assets,
less liabilities - 4.7% .............................. 953,842
-----------
Total net assets - 100.0% .............................. $20,197,058
===========
<CAPTION>
Security Equity Fund - Enhanced Index Series
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE - 1.0%
B.F. Goodrich Company ....................... 300 $ 8,700
Boeing Company .............................. 1,800 76,725
General Dynamics Corporation ................ 400 24,975
Wyman-Gordon Company* ....................... 6,600 123,337
----------
233,737
AGRICULTURAL PRODUCTS - 0.2%
Archer-Daniels-Midland Company .............. 310 3,778
Delta and Pine Land Company ................. 500 12,937
Pioneer Hi-Bred International, Inc. ......... 500 19,906
----------
36,621
AIR FREIGHT - 0.1%
FDX Corporation* ............................ 600 23,250
AIRLINES - 0.2%
AMR Corporation* ............................ 300 16,350
Delta Air Lines, Inc. ....................... 600 29,100
Southwest Airlines Company .................. 550 8,353
----------
53,803
ALUMINUM - 0.3%
Alcan Aluminum, Ltd. ........................ 200 6,250
Alcoa, Inc. ................................. 800 49,650
Reynolds Metal Company ...................... 100 6,037
----------
61,937
AUTO PARTS & EQUIPMENT - 0.3%
Dana Corporation ............................ 100 3,712
Delphi Automotive Systems
Corporation .............................. 1,098 17,637
Genuine Parts Company ....................... 100 2,656
Goodyear Tire & Rubber Company .............. 600 28,875
TRW, Inc. ................................... 400 19,900
----------
72,780
AUTOMOBILES - 1.0%
Ford Motor Company .......................... 2,400 120,450
General Motors Corporation(1) ............... 1,600 100,700
----------
221,150
BANKS - MAJOR REGIONAL - 3.3%
BB&T Corporation ............................ 500 16,187
Bank of New York Company, Inc. .............. 1,400 46,812
Bank One Corporation ........................ 2,600 90,512
BankBoston Corporation ...................... 1,300 56,388
Comerica, Inc. .............................. 200 10,125
Fifth Third Bancorp ......................... 500 30,422
First American Corporation .................. 200 8,575
Firstar Corporation ......................... 1,882 48,224
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
38
<PAGE> 39
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
BANKS - MAJOR REGIONAL (continued)
Fleet Financial Group, Inc. ............ 100 $ 3,663
Huntington Bancshares, Inc. ............ 200 5,312
Keycorp ................................ 500 12,906
Mellon Bank Corporation ................ 900 30,375
National City Corporation .............. 1,100 29,356
Northern Trust Corporation ............. 100 8,350
PNC Bank Corporation ................... 500 26,344
Regions Financial Corporation .......... 200 6,000
Republic New York Corporation .......... 400 24,575
SouthTrust Corporation ................. 300 10,763
State Street Boston .................... 200 12,925
Summit Bancorp ......................... 500 16,219
SunTrust Banks, Inc. ................... 500 32,875
Synovus Financial Corporation .......... 100 1,869
Union Planters Corporation ............. 600 24,450
Wachovia Corporation ................... 400 31,450
Wells Fargo Company(1) ................. 2,900 114,913
Western Bancorp ........................ 1,100 42,488
--------
742,078
BANKS - MONEY CENTER - 1.9%
Bank of America Corporation(1) ......... 3,200 178,200
Chase Manhattan Corporation(1) ......... 1,500 113,062
First Union Corporation ................ 1,800 64,012
J.P. Morgan & Company, Inc. ............ 600 68,550
--------
423,824
BEVERAGES - ALCOHOLIC - 0.3%
Anheuser-Busch Companies, Inc. ......... 800 56,050
BEVERAGES - SOFT DRINK - 1.3%
Coca-Cola Company(1) ................... 3,700 177,831
Coca-Cola Enterprises, Inc. ............ 1,200 27,075
PepsiCo, Inc. .......................... 2,700 81,675
--------
286,581
BIOTECHNOLOGY - 0.4%
Amgen, Inc.* ........................... 1,100 89,650
BROADCAST MEDIA - 1.5%
CBS Corporation* ....................... 200 9,250
Clear Channel
Communications, Inc.* ............... 900 71,887
Comcast Corporation (Cl.A) ............. 1,400 55,825
MediaOne Group, Inc.*(1) ............... 2,900 198,106
--------
335,068
BUILDING MATERIALS - 0.1%
Armstrong World Industries, Inc. ....... 100 4,494
Masco Corporation ...................... 400 12,400
--------
16,894
CHEMICALS - BASIC - 1.0%
Air Products & Chemicals, Inc. ......... 100 2,906
Dow Chemical Company ................... 300 34,087
E.I. du Pont de Nemours
& Company(1) ........................ 2,034 123,820
Eastman Chemical Company ............... 100 4,000
Praxair, Inc. .......................... 100 4,600
Rohm & Haas Company .................... 200 7,225
Union Carbide Corporation .............. 700 39,769
--------
216,407
CHEMICALS - DIVERSIFIED - 0.3%
Engelhard Corporation .................. 800 14,550
FMC Corporation* ....................... 300 14,475
Monsanto Company ....................... 900 32,119
PPG Industries, Inc. ................... 200 12,000
--------
73,144
CHEMICALS - SPECIALTY - 0.8%
International Flavors &
Fragrances, Inc. .................... 200 6,900
Nalco Chemical Company ................. 3,500 176,750
W.R. Grace & Company* .................. 100 1,606
--------
185,256
COMMUNICATION EQUIPMENT - 3.2%
ADC Telecommunications, Inc.* .......... 600 25,163
Andrew Corporation* .................... 200 3,475
Excel Switching Corporation* ........... 700 25,112
General Instrument Corporation* ........ 600 28,875
Lucent Technologies, Inc.(1) ........... 4,775 309,778
Motorola, Inc. ......................... 1,100 96,800
Nortel Networks Corporation ............ 2,000 102,000
QUALCOMM, Inc.*(1) ..................... 400 75,675
Scientific-Atlanta, Inc. ............... 200 9,912
Tellabs, Inc.* ......................... 700 39,856
--------
716,646
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
39
<PAGE> 40
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE - 5.1%
Apple Computer, Inc.* ................... 300 $ 18,994
Compaq Computer Corporation ............. 2,800 64,225
Data General Corporation* ............... 300 6,319
Dell Computer Corporation*(1) ........... 5,000 209,062
Gateway, Inc.* .......................... 1,000 44,437
Hewlett-Packard Company(1) .............. 1,800 165,600
International Business Machines
Corporation(1) ....................... 3,500 424,813
Sequent Computer Systems, Inc.* ......... 2,000 36,000
Silicon Graphics, Inc.* ................. 1,200 13,125
Sun Microsystems, Inc.*(1) .............. 1,600 148,800
----------
1,131,375
COMPUTER SOFTWARE/SERVICES - 6.8%
Adobe Systems, Inc. ..................... 600 68,100
America Online, Inc.*(1) ................ 2,450 254,800
BMC Software, Inc.* ..................... 400 28,625
Computer Associates
International, Inc. .................. 1,000 61,250
Computer Sciences Corporation* .......... 400 28,125
Compuware Corporation* .................. 600 15,637
Microsoft Corporation*(1) ............... 9,500 860,344
Novell, Inc.* ........................... 1,100 22,756
Oracle Corporation*(1) .................. 2,800 127,400
Parametric Technology Company* .......... 200 2,700
Unisys Corporation* ..................... 900 40,613
----------
1,510,350
COMPUTERS - NETWORKING - 2.2%
3COM Corporation* ....................... 1,200 34,500
Cabletron Systems, Inc.* ................ 800 12,550
Cisco Systems, Inc.*(1) ................. 6,000 411,375
International Network Services* ......... 500 27,187
Network Appliance, Inc.* ................ 100 7,162
----------
492,774
COMPUTERS - PERIPHERALS - 0.8%
EMC Corporation*(1) ..................... 1,800 128,587
Lexmark International Group, Inc.* ...... 300 24,150
Seagate Technology, Inc.* ............... 1,000 30,812
----------
183,549
CONSTRUCTION - CEMENT - 1.0%
Lone Star Industries, Inc. .............. 4,100 204,487
Vulcan Materials ........................ 200 7,325
----------
211,812
CONSUMER - JEWEL/GIFT - 0.1%
American Greetings Corporation .......... 700 18,025
Jostens, Inc. ........................... 400 7,650
----------
25,675
CONSUMER FINANCE - 0.4%
Capital One Financial Corporation ....... 200 7,800
Countrywide Credit Industries, Inc. ..... 100 3,225
Household International, Inc. ........... 700 28,087
MBNA Corporation ........................ 1,200 27,375
Providian Financial Corporation ......... 300 23,756
----------
90,243
CONTAINER - METAL/GLASS - 0.0%
Crown Cork & Seal Company, Inc. ......... 100 2,425
CONTAINERS & PACKAGING - 0.1%
Temple-Inland, Inc. ..................... 400 24,200
DISTRIBUTION - FOOD & HEALTH - 0.3%
Cardinal Health, Inc. ................... 400 21,800
McKesson HBOC, Inc. ..................... 500 14,500
SUPERVALU, Inc. ......................... 800 17,450
SYSCO Corporation ....................... 300 10,519
----------
64,269
ELECTRIC COMPANIES - 3.1%
AES Corporation* ........................ 100 5,900
Ameren Corporation ...................... 100 3,781
American Electric Power Company, Inc. ... 400 13,650
Carolina Power & Light Company .......... 300 10,612
Cinergy Corporation ..................... 100 2,831
CMS Energy Corporation .................. 200 6,788
Consolidated Edison, Inc. ............... 1,100 45,650
Dominion Resources, Inc. ................ 200 9,025
DTE Energy Company ...................... 800 28,900
Duke Energy Corporation ................. 1,100 60,637
Edison International .................... 2,300 55,919
Entergy Corporation ..................... 1,500 43,406
FirstEnergy Corporation ................. 1,800 45,900
Florida Progress Corporation ............ 200 9,250
FPL Group, Inc. ......................... 300 15,112
GPU, Inc. ............................... 200 6,525
Niagra Mohawk Power
Holdings, Inc.* ...................... 2,500 38,594
PG&E Corporation ........................ 1,100 28,463
PP&L Resources, Inc. .................... 300 8,119
Pacificorp .............................. 700 14,088
PECO Energy Company ..................... 200 7,500
Public Service Enterprise Group, Inc. ... 1,000 38,625
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
40
<PAGE> 41
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC COMPANIES (continued)
Reliant Energy, Inc. ...................... 1,300 $ 35,181
Southern Company .......................... 2,600 66,950
Texas Utilities Company ................... 900 33,581
Unicom Corporation ........................ 1,200 44,325
United Water Resources, Inc. .............. 400 13,050
--------
692,362
ELECTRICAL EQUIPMENT - 3.8%
Cooper Industries, Inc. ................... 100 4,675
Emerson Electric Company .................. 600 37,913
General Electric Company(1) ............... 6,000 711,375
Honeywell, Inc. ........................... 400 44,525
Rockwell International Company ............ 200 10,500
Solectron Corporation* .................... 500 35,906
--------
844,894
ELECTRONICS - DEFENSE - 0.1%
Raytheon Company (Cl.B) ................... 400 19,850
ELECTRONICS - DISTRIBUTION - 0.0%
W.W. Grainger, Inc. ....................... 100 4,806
ELECTRONICS - INSTRUMENTATION - 0.1%
EG&G, Inc. ................................ 500 19,906
ELECTRONICS - SEMICONDUCTORS - 2.8%
Advanced Micro Devices, Inc.* ............. 600 10,313
Intel Corporation(1) ...................... 6,118 454,644
LSI Logic Corporation* .................... 400 20,600
Micron Technology, Inc.* .................. 300 19,969
National Semiconductor
Corporation* ........................... 500 15,250
Texas Instruments, Inc.(1) ................ 1,100 90,475
Unitrode Corporation* ..................... 500 21,000
--------
632,251
ENTERTAINMENT - 1.8%
King World Productions, Inc.* ............. 1,600 60,000
Seagram Company, Inc. ..................... 800 36,400
Time Warner, Inc.(1) ...................... 2,800 170,100
Viacom, Inc. (Cl.B)* ...................... 1,400 59,150
Walt Disney Company ....................... 2,900 75,038
--------
400,688
EQUIPMENT - SEMICONDUCTORS - 0.5%
Applied Materials, Inc.*(1) ............... 1,200 93,450
KLA-Tencor Corporation* ................... 200 13,000
--------
106,450
FINANCIAL - DIVERSE - 3.5%
American Express Company(1) ............... 1,000 134,625
Associates First Capital
Corporation (Cl.A) ..................... 1,200 43,200
Citigroup, Inc.(1) ........................ 7,200 316,800
Fannie Mae1 ............................... 1,900 119,106
Freddie Mac ............................... 1,200 62,400
Morgan Stanley Dean Witter
& Company1 ............................. 1,000 89,187
SLM Holding Corporation ................... 200 8,600
--------
773,918
FOODS - 0.8%
Bestfoods ................................. 300 14,550
ConAgra, Inc. ............................. 500 11,281
General Mills, Inc. ....................... 200 16,225
H.J. Heinz Company ........................ 400 17,200
Kellogg Company ........................... 200 7,487
Nabisco Group Holdings
Corporation ............................ 500 7,500
Quaker Oats Company ....................... 100 6,187
Ralston-Ralston Purina Group .............. 300 8,344
Sara Lee Corporation ...................... 800 18,750
Unilever NV ............................... 900 61,313
Wm. Wrigley Jr. Company ................... 100 6,881
--------
175,718
FOOTWEAR - 0.1%
Nike, Inc. (Cl.B) ......................... 500 28,437
Reebok International, Ltd.* ............... 400 4,275
--------
32,712
GAMING & LOTTERY - 0.1%
Harrah's Entertainment, Inc.* ............. 400 11,100
Mirage Resorts, Inc.* ..................... 400 5,625
--------
16,725
GOLD & PRECIOUS METALS MINING - 0.0%
Barrick Gold Corporation .................. 400 8,700
Homestake Mining Company .................. 100 919
--------
9,619
HEALTH CARE - DIVERSE - 3.2%
Abbott Laboratories ....................... 1,800 66,150
American Home Products
Corporation(1) ......................... 2,200 91,300
Bristol-Myers Squibb Company(1) ........... 3,600 243,000
Johnson & Johnson(1) ...................... 2,400 220,500
Warner-Lambert Company(1) ................. 1,400 92,925
--------
713,875
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
41
<PAGE> 42
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
HEALTH CARE - LONG TERM CARE - 0.0%
Manor Care, Inc.* ........................... 100 $ 1,719
HEALTH CARE - MANAGED CARE - 0.1%
Aetna, Inc. ................................. 100 4,925
Humana, Inc.* ............................... 300 2,063
United HealthCare Corporation ............... 200 9,737
Wellpoint Health Networks, Inc.* ............ 100 5,700
--------
22,425
HEALTH CARE - SPECIALIZED SERVICES - 0.0%
HEALTHSOUTH Corporation* .................... 800 4,850
HOMEBUILDING - 0.0%
Centex Corporation* ......................... 100 2,956
Pulte Corporation ........................... 400 8,700
--------
11,656
HOSPITAL MANAGEMENT - 0.0%
Tenet Healthcare Corporation* ............... 600 10,537
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.1%
Maytag Corporation .......................... 200 6,663
Whirlpool Corporation ....................... 100 6,531
--------
13,194
HOUSEHOLD PRODUCTS - 1.5%
Clorox Company .............................. 400 15,300
Colgate-Palmolive Company ................... 1,000 45,750
Fort James Corporation ...................... 200 5,338
Kimberly-Clark Corporation .................. 900 47,250
Procter & Gamble Company(1) ................. 2,400 225,000
--------
338,638
HOUSEWARES - 0.1%
Fortune Brands, Inc. ........................ 100 3,225
Newell Rubbermaid, Inc. ..................... 500 14,281
Tupperware Corporation ...................... 400 8,100
--------
25,606
INSURANCE - BROKERS - 0.2%
Aon Corporation ............................. 350 10,347
Marsh & McLennan Companies, Inc. ............ 400 27,400
--------
37,747
INSURANCE - LIFE & HEALTH - 0.3%
AFLAC, Inc. ................................. 500 20,938
American General Corporation ................ 400 25,275
Jefferson-Pilot Corporation ................. 100 6,319
UnumProvident Corporation ................... 373 10,980
--------
63,512
INSURANCE - MULTILINE - 1.4%
American International Group, Inc.(1) ...... 3,075 267,333
Cigna Corporation ........................... 300 23,325
Hartford Financial Services
Group, Inc. .............................. 300 12,262
Lincoln National Corporation ................ 200 7,513
--------
310,433
INSURANCE - PROPERTY & CASUALTY - 0.3%
Allstate Corporation ........................ 800 19,950
Chubb Corporation ........................... 347 17,285
Cincinnati Financial Corporation ............ 300 11,259
MBIA, Inc. .................................. 100 4,663
Progressive Corporation ..................... 100 8,169
St. Paul Companies, Inc. .................... 400 11,000
--------
72,326
INVESTMENT BANK/BROKERAGE - 0.5%
Bear Stearns Companies, Inc. ................ 200 7,687
Charles Schwab Corporation .................. 1,500 50,531
Lehman Brothers Holdings, Inc. .............. 200 11,663
Merrill Lynch & Company, Inc. ............... 600 40,313
Paine Webber Group, Inc. .................... 300 10,875
--------
121,069
INVESTMENT MANAGEMENT - 0.0%
Franklin Resources, Inc. .................... 200 6,150
IRON & STEEL - 0.2%
Allegheny Teledyne, Inc. .................... 100 1,687
Bethlehem Steel Corporation* ................ 4,400 32,450
Worthington Industries, Inc. ................ 1,000 17,000
--------
51,137
LEISURE TIME PRODUCTS - 0.3%
Hasbro, Inc. ................................ 1,800 38,588
Mattel, Inc. ................................ 500 9,500
--------
48,088
LODGING - HOTELS - 0.2%
Carnival Corporation (Cl.A) ................. 1,100 47,850
Marriott International, Inc. (Cl.A) ........ 300 9,806
--------
57,656
MACHINERY - DIVERSE - 0.9%
Case Corporation ............................ 2,100 104,606
Caterpillar, Inc. ........................... 1,000 54,813
Dover Corporation ........................... 300 12,262
Ingersoll-Rand Company ...................... 200 10,988
Parker-Hannifin Corporation ................. 100 4,481
Timken Company .............................. 500 8,063
--------
195,213
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
42
<PAGE> 43
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - DIVERSIFIED - 2.1%
AlliedSignal, Inc. ............................. 400 $ 23,975
Briggs & Stratton Corporation .................. 600 35,025
Corning, Inc. .................................. 300 20,569
Danaher Corporation ............................ 100 5,269
ITT Industries, Inc. ........................... 200 6,362
Illinois Tool Works, Inc. ...................... 400 29,825
Minnesota Mining & Manufacturing Company ....... 800 76,850
National Services Industries, Inc. ............. 200 6,300
Tenneco, Inc. .................................. 300 5,100
Textron, Inc. .................................. 500 38,688
Tyco International, Ltd.(1) .................... 1,450 149,712
United Technologies Corporation ................ 1,200 71,175
--------
468,850
MANUFACTURING - SPECIALIZED - 0.2%
Avery Dennison Corporation ..................... 100 5,275
Millipore Corporation .......................... 500 18,781
Pall Corporation ............................... 700 16,231
Sealed Air Corporation* ........................ 100 5,131
--------
45,418
MEDICAL PRODUCTS & SUPPLIES - 0.7%
C.R. Bard, Inc. ................................ 200 9,413
Baxter International, Inc. ..................... 400 24,100
Becton, Dickinson & Company .................... 100 2,806
Boston Scientific Corporation* ................. 500 12,344
Guidant Corporation ............................ 400 21,450
Medtronic, Inc. ................................ 2,000 71,000
St. Jude Medical, Inc.* ........................ 300 9,450
--------
150,563
METALS & MINING - 0.1%
ASARCO, Inc. ................................... 100 2,681
Cyprus Amax Minerals Company ................... 200 3,925
Phelps Dodge Corporation ....................... 100 5,506
--------
12,112
NATURAL GAS - 0.7%
Coastal Corporation ............................ 1,000 40,938
Columbia Energy Group .......................... 100 5,537
Consolidated Natural Gas Company ............... 100 6,237
Enron Corporation .............................. 1,100 45,375
NICOR, Inc. .................................... 300 11,156
Peoples Energy Corporation ..................... 200 7,038
Sempra Energy .................................. 400 8,325
Sonat, Inc. .................................... 200 7,938
Williams Companies, Inc. ....................... 600 22,462
--------
155,006
OFFICE EQUIPMENT & SUPPLIES - 0.1%
Pitney-Bowes, Inc. ............................. 400 24,375
OIL - DOMESTIC - 0.6%
Amerada Hess Corporation ....................... 100 6,125
Atlantic Richfield Company ..................... 400 35,450
Conoco, Inc. (Cl.B) ............................ 1,165 31,884
Occidental Petroleum Corporation ............... 1,000 23,125
Phillips Petroleum Company ..................... 500 24,375
USX-Marathon Group ............................. 400 11,700
--------
132,659
OIL - INTERNATIONAL - 4.1%
Chevron Corporation ............................ 1,600 142,000
Exxon Corporation(1) ........................... 4,800 364,500
Mobil Corporation(1) ........................... 1,400 141,050
Royal Dutch Petroleum Company(1) ............... 3,800 224,438
Texaco, Inc. ................................... 800 50,500
--------
922,488
OIL & GAS - DRILLING & EQUIPMENT - 0.4%
Baker Hughes, Inc. ............................. 200 5,800
Halliburton Company ............................ 600 24,600
Rowan Companies, Inc.* ......................... 100 1,625
Schlumberger, Ltd. ............................. 1,000 62,313
--------
94,338
OIL & GAS - EXPLORATION & PRODUCTION - 0.1%
Burlington Resources, Inc. ..................... 200 7,350
Helmerich & Payne, Inc. ........................ 200 5,063
Kerr-McGee Corporation ......................... 200 11,012
Unocal Corporation ............................. 200 7,413
--------
30,838
OIL & GAS - REFINING & MARKETING - 0.1%
Ashland, Inc. .................................. 500 16,812
Tosco Corporation .............................. 500 12,625
--------
29,437
PAPER & FOREST PRODUCTS - 0.5%
Champion International Corporation ............. 100 5,138
Georgia-Pacific Group .......................... 100 4,050
International Paper Company .................... 500 24,031
Louisiana-Pacific Company ...................... 1,000 15,625
Potlatch Corporation ........................... 800 32,950
Westvaco Corporation ........................... 200 5,125
Weyerhaeuser Company ........................... 400 23,050
Willamette Industries, Inc. .................... 100 4,313
--------
114,282
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
43
<PAGE> 44
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
PERSONAL CARE - 0.3%
Avon Products, Inc. .......................... 300 $ 7,444
Gillette Company ............................. 1,700 57,694
--------
65,138
PHARMACEUTICALS - GENERIC - 0.3%
ALZA Corporation* ............................ 1,400 59,937
Watson Pharmaceuticals, Inc.* ................ 200 6,113
--------
66,050
PHARMACEUTICALS - MAJOR - 3.6%
Eli Lilly & Company(1) ....................... 1,900 121,600
Merck & Company, Inc.(1) ..................... 4,300 278,694
Pfizer, Inc.(1) .............................. 7,100 255,156
Pharmacia & Upjohn, Inc. ..................... 800 39,700
Schering-Plough Corporation(1) ............... 2,600 113,425
--------
808,575
PHOTOGRAPHY/IMAGING - 0.4%
Eastman Kodak Company ........................ 600 45,263
Xerox Corporation ............................ 1,100 46,131
--------
91,394
PUBLISHING - 0.0%
McGraw-Hill Companies, Inc. .................. 200 9,675
PUBLISHING - NEWSPAPER - 0.3%
Gannett Company, Inc. ........................ 400 27,675
Knight-Ridder, Inc. .......................... 300 16,463
New York Times Company (Cl.A) ................ 100 3,750
Tribune Company .............................. 200 9,950
--------
57,838
RAILROADS - 0.3%
Burlington Northern Santa Fe
Corporation ............................... 600 16,500
CSX Corporation .............................. 300 12,713
Kansas City Southern Industries, Inc. ........ 100 4,644
Norfolk Southern Corporation ................. 600 14,700
Union Pacific Corporation .................... 300 14,419
--------
62,976
RESTAURANTS - 0.5%
Darden Restaurants, Inc. ..................... 100 1,956
McDonald's Corporation ....................... 2,300 98,900
Tricon Global Restaurants, Inc.* ............. 300 12,281
--------
113,137
RETAIL - APPAREL - 0.3%
Gap, Inc. .................................... 1,550 49,600
Limited, Inc. ................................ 192 7,344
TJX Companies, Inc. .......................... 300 8,419
--------
65,363
RETAIL - BUILDING SUPPLIES - 1.0%
Home Depot, Inc.(1) .......................... 2,800 192,150
Lowe's Companies, Inc. ....................... 800 39,000
--------
231,150
RETAIL - COMPUTERS & ELECTRONICS - 0.3%
Best Buy Company, Inc.* ...................... 400 24,825
Circuit City Stores - Circuit City Group ..... 900 37,969
Tandy Corporation ............................ 200 10,337
--------
73,131
RETAIL - DEPARTMENT STORES - 0.6%
Dillard's, Inc. .............................. 200 4,063
Federated Department Stores, Inc.* ........... 700 30,581
J.C. Penney Company, Inc. .................... 500 17,187
Kohl's Corporation* .......................... 900 59,513
May Department Stores Company ................ 500 18,219
Nordstrom, Inc. .............................. 400 10,800
--------
140,363
RETAIL - DISCOUNTERS - 0.1%
Consolidated Stores Corporation* ............. 200 4,412
Dollar General Corporation ................... 400 12,350
--------
16,762
RETAIL - DRUG STORES - 0.3%
CVS Corporation .............................. 500 20,406
Longs Drug Stores Corporation ................ 200 5,975
Rite Aid Corporation ......................... 500 6,906
Walgreen Company ............................. 1,500 38,063
--------
71,350
RETAIL - FOOD CHAINS - 0.9%
Albertson's, Inc. ............................ 526 20,810
Great Atlantic & Pacific Tea
Company, Inc. ............................. 600 18,188
Hannaford Bros. Company ...................... 1,200 84,525
Kroger Company* .............................. 1,900 41,919
Safeway, Inc.* ............................... 1,100 41,869
--------
207,311
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
44
<PAGE> 45
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Enhanced Index Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - GENERAL MERCHANDISE - 2.2%
Costco Companies, Inc.* ..................... 500 $ 36,000
Dayton Hudson Corporation ................... 700 42,044
Kmart Corporation* .......................... 900 10,519
Sears, Roebuck and Company .................. 200 6,275
Wal-Mart Stores, Inc.(1) .................... 8,200 390,012
-----------
484,850
RETAIL - SPECIALTY - 0.2%
Autozone, Inc.* ............................. 300 8,419
Office Depot, Inc.* ......................... 1,000 10,188
Staples, Inc.* .............................. 900 19,631
Toys `R' Us, Inc.* .......................... 500 7,500
-----------
45,738
SAVINGS & LOANS - 0.2%
Golden West Financial ....................... 100 9,825
Washington Mutual, Inc. ..................... 900 26,325
-----------
36,150
SERVICES - ADVERTISING & MARKETING - 0.9%
Interpublic Group of Companies, Inc. ........ 500 20,562
Nielsen Media Research, Inc.* ............... 4,200 156,188
Omnicom Group, Inc. ......................... 200 15,837
-----------
192,587
SERVICES - COMMERCIAL & CONSUMER - 0.1%
Dun & Bradstreet Corporation ................ 100 2,988
H&R Block, Inc. ............................. 300 13,031
IMS Health, Inc. ............................ 400 9,125
Laidlaw, Inc. ............................... 200 1,350
-----------
26,494
SERVICES - DATA PROCESSING - 0.6%
Automatic Data Processing, Inc. ............. 800 35,700
Ceridian Corporation* ....................... 600 14,925
Electronic Data Systems
Corporation .............................. 900 47,644
First Data Corporation ...................... 600 26,325
Paychex, Inc. ............................... 400 13,650
-----------
138,244
SPECIALTY PRINTING - 0.1%
Deluxe Corporation .......................... 100 3,400
R.R. Donnelley & Sons Company ............... 300 8,663
-----------
12,063
TELECOMMUNICATION - CELLULAR - 0.5%
Nextel Communications, Inc. (Cl.A)* ........ 600 40,688
Sprint Corporation (PCS Group)* ............. 900 67,106
-----------
107,794
TELECOMMUNICATION - LONG DISTANCE - 2.6%
AT&T Corporation(1) ......................... 4,700 204,450
Global Crossing, Ltd.* ...................... 1,320 34,980
MCI WorldCom, Inc.*(1) ...................... 3,500 251,563
Sprint Corporation (FON Group)(1) ........... 1,600 86,800
-----------
577,793
TELEPHONE - 3.9%
ALLTEL Corporation .......................... 401 28,220
Ameritech Corporation ....................... 1,900 127,656
Bell Atlantic Corporation(1) ................ 2,700 181,744
BellSouth Corporation(1) .................... 3,400 153,000
Centurytel, Inc. ............................ 300 12,188
GTE Corporation(1) .......................... 1,800 138,375
SBC Communications, Inc.(1) ................. 3,500 178,719
U.S. West, Inc. ............................. 1,100 62,769
-----------
882,671
TEXTILES - APPAREL - 0.0%
V.F. Corporation ............................ 100 3,100
TOBACCO - 0.9%
Philip Morris Companies, Inc. ............... 4,400 150,425
UST, Inc. ................................... 1,700 51,319
-----------
201,744
TRUCKS & PARTS - 0.1%
Navistar International Corporation* ........ 400 18,600
WASTE MANAGEMENT - 0.1%
Allied Waste Industries, Inc.* .............. 300 3,506
Waste Management, Inc. ...................... 1,000 19,250
-----------
22,756
-----------
Total common stocks - 91.3% ............................... 20,428,441
SHORT-TERM INVESTMENT
- ---------------------
U.S. GOVERNMENT & AGENCIES - 1.3%
U.S. Treasury Bill, 4.55% - 12/02/99(1) ..... $ 300,000 297,621
-----------
Total investments - 92.6% .............................. 20,726,062
Cash and other assets, Eless liabilities - 7.4% ....... 1,659,213
-----------
Total net assets - 100.0% .............................. $22,385,275
===========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
45
<PAGE> 46
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - International Series
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA - 1.6%
Brambles Industries, Ltd. ................. 1,450 $ 41,986
TABCORP Holdings, Ltd. .................... 4,800 32,578
WMC, Ltd. ................................. 8,300 42,249
----------
116,813
AUSTRIA - 0.7%
Erste Bank der oesterreichischen
Sparkassen AG .......................... 1,000 51,024
BERMUDA - 0.5%
Tyco International, Ltd. .................. 400 41,300
BOTSWANA - 0.2%
Sechaba Breweries, Ltd. ................... 14,300 15,387
BRAZIL - 0.4%
Petroleo Brasileiro S.A. ADR .............. 2,100 32,739
CANADA - 3.1%
Inco, Ltd. ................................ 2,700 57,693
Nortel Networks Corporation ............... 2,240 114,325
Rogers Communications, Inc.(Cl.B)* ........ 3,520 59,525
----------
231,543
FINLAND - 3.1%
Nokia Oyj ADR (Cl.A) ...................... 1,200 107,775
Stora Enso Oyj ............................ 4,860 64,440
UPM-Kymmene Oyj ........................... 1,680 57,254
----------
229,469
FRANCE - 14.3%
Alcatel ................................... 370 50,990
AXA-UAP ................................... 670 84,770
Banque Nationale De Paris ................. 710 56,673
Canal Plus ................................ 1,653 98,761
Carrefour S.A ............................. 561 89,799
Compagnie De Saint Gobain ................. 320 59,640
Elf Aquitaine S.A ......................... 440 76,850
Societe Generale (Cl.A) ................... 360 74,188
Societe Generale d'Enterprises S.A ........ 1,680 84,629
Suez Lyonnaise des Eaux ................... 710 114,935
Stmicroelectronics NV ..................... 840 62,160
Total Fina S.A. (Cl.B) .................... 930 116,873
Union du Credit-Bail Immobilier ........... 360 51,031
Usinor S.A ................................ 3,290 46,426
----------
1,067,725
GERMANY - 6.2%
Bayer AG .................................. 2,390 95,578
Hoescht AG ................................ 1,900 80,232
Intershop Communications AG* .............. 410 42,481
Mannesmann AG ............................. 830 133,494
SAP AG .................................... 90 40,449
Veba AG ................................... 1,240 67,681
----------
459,915
GREECE - 0.8%
Hellenic Telecommunications
Organization S.A ....................... 1,700 39,673
Panafon Hellenic Telecom S.A .............. 700 19,059
----------
58,732
HONG KONG - 2.2%
China Telecom (Hong Kong), Ltd.* .......... 15,000 46,249
Cosco Pacific, Ltd. ....................... 32,500 25,731
First Pacific Company, Ltd. ............... 32,000 19,568
Hutchison Whampoa, Ltd. ................... 3,200 29,764
New World China Land, Ltd.* ............... 21,600 12,652
Wharf Holdings, Ltd. ...................... 10,000 28,901
----------
162,865
INDIA - 0.3%
Larsen & Toubro, Ltd. GDR ................. 1,200 20,150
INDONESIA - 0.4%
PT Hanjaya Mandala
Sampoerna TBK* ......................... 8,600 15,208
PT Indah Kiat Pulp & Paper
Corporation TBK* ....................... 39,500 14,065
----------
29,273
IRELAND - 2.3%
Bank of Ireland ........................... 9,066 73,863
CRH PLC ................................... 4,920 94,212
----------
168,075
ITALY - 4.7%
Assicurazioni Generali .................... 2,120 70,443
San Paolo - IMI SpA ....................... 5,688 73,904
Seat Pagine Gialle SpA .................... 41,670 60,888
Telecom Italia SpA ........................ 7,380 64,135
Unicredito Italiano SpA ................... 16,410 80,218
----------
349,588
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
46
<PAGE> 47
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - International Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
JAPAN - 12.3%
Canon, Inc. ............................... 2,000 $ 58,232
Fuji Heavy Industries, Ltd. ............... 10,000 79,459
Fujitsu, Ltd. ............................. 4,000 124,730
Murata Manufacturing
Company, Ltd. .......................... 1,000 100,498
Nippon Telegraph & Telephone
Corporation ............................ 6 73,824
NTT Mobile Communication
Network, Inc. .......................... 4 78,895
Rohm Company, Ltd. ........................ 300 62,694
Sanrio Company, Ltd. ...................... 1,000 55,884
Softbank Corporation ...................... 200 76,078
Takeda Chemical Industries ................ 2,100 113,412
Yamanouchi Pharmaceutical
Company, Ltd. .......................... 2,000 93,735
--------
917,441
MEXICO - 0.8%
Grupo Televisa S.A. GDR* .................. 900 35,944
Telefonos De Mexico S.A. ADR ............. 300 21,375
--------
57,319
NETHERLANDS - 7.6%
ASM Lithography Holding NV* ............... 1,300 88,054
Benckiser NV (Cl.B) ....................... 700 43,500
DSM NV .................................... 1,260 49,986
Equant NV* ................................ 640 52,074
Ing Groep NV .............................. 2,050 111,346
Koninklijke (Royal) Philips
Electronics NV ......................... 962 96,818
Koninklijke Ahold NV ...................... 1,130 37,186
Nutreco Holding NV ........................ 1,020 35,305
United Pan-Europe
Communications NV* ..................... 849 52,443
--------
566,712
NORWAY - 1.0%
Norsk Hydro ASA ........................... 1,750 74,041
POLAND - 0.2%
Telekomunikacja Polska S.A. GDR ........... 3,153 15,467
SINGAPORE - 1.9%
Allgreen Properties* ...................... 100 86
Natsteel Electronics, Ltd. ................ 8,500 31,741
Neptune Orient Lines, Ltd.* ............... 16,800 20,154
Oversea-Chinese Banking
Corporation, Ltd. ...................... 5,400 41,917
Singapore Press Holdings, Ltd. ............ 1,800 28,368
Wing Tai Holdings, Ltd. ................... 20,700 16,433
--------
138,699
SOUTH KOREA - 1.4%
Korea Electric Power Corporation ADR ...... 860 13,814
Korea Telecom Corporation ADR* ............ 790 29,230
Pohang Iron & Steel ADR ................... 1,300 40,706
SK Telecom Company, Ltd. .................. 1,900 19,594
--------
103,344
SPAIN - 4.2%
Caja Postal y Banco Hipotercario
de Argentaria, Espana S.A .............. 3,400 74,810
Fomento de Construcciones y
Contratas S.A .......................... 3,520 95,969
Repsol-YPF S.A ............................ 3,480 68,157
Telefonica S.A.* .......................... 4,798 76,801
--------
315,737
SWEDEN - 5.1%
Atlas Copco AB - (Cl.A) ................... 1,910 53,586
Atlas Copco AB (Rights)* .................. 1,820 2,198
Electrolux AB - (Cl.B) .................... 5,800 108,246
SKF AB - (Cl.B) ........................... 2,330 52,296
Sandvik AB - (Cl.B) ....................... 3,930 107,382
Telefonaktiebolaget
LM Ericsson - (Cl.B) ................... 1,730 53,601
--------
377,309
SWITZERLAND - 3.5%
ABB, Ltd. ................................. 764 78,915
Clariant AG ............................... 73 33,080
UBS AG .................................... 260 73,291
Zurich Allied AG .......................... 140 78,089
--------
263,375
TURKEY - 0.4%
Akbank T.A.S .............................. 730,100 10,918
Haci Omer Sabanci Holding AS .............. 634,700 16,507
--------
27,425
UNITED KINGDOM - 13.1%
BP Amoco PLC ADR .......................... 670 74,244
Barclays PLC .............................. 3,070 90,098
Colt Telecom Group PLC* ................... 4,820 114,308
Granada Group PLC ......................... 7,900 67,980
Invensys PLC .............................. 17,793 86,152
Next PLC .................................. 4,190 42,128
Old Mutual PLC* ........................... 16,080 34,228
Orange PLC* ............................... 3,830 75,565
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
47
<PAGE> 48
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - International Series (continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Peninsular & Oriental Steam
Navigation Company .................. 5,940 $ 90,391
Reckitt & Colman PLC ................... 2,410 30,224
Sema Group PLC ......................... 4,130 50,435
Shell Transport & Trading
Company PLC ......................... 13,770 102,957
Vodafone Airtouch PLC .................. 5,030 119,040
----------
977,750
UNITED STATES - 0.4%
MIH, Ltd.* ............................. 1,010 29,164
----------
Total foreign stocks - 92.7% ......................... 6,898,381
FOREIGN BONDS
- -------------
JAPAN - 0.3%
Acom Company, Ltd.
(Convertible), 0.00% - 2002 ......... 2,000,000(2) 25,312
CALL OPTIONS PURCHASED - 0.1%
- ----------------------
NIKKEI 225 expires March 2000,
Strike price 18,613.35............... 14 9,496
----------
Total investments - 93.1% ............................ 6,933,189
Cash and other assets,
less liabilities - 6.9% ......................... 515,238
----------
Total net assets - 100.0% ............................ $7,448,427
==========
<CAPTION>
INVESTMENT CONCENTRATION
- ------------------------------------------------------------------------------
At September 30, 1999, International Series' investment
concentration, by industry, was as follows:
<S> <C>
Appliances .............................................. 1.4%
Automobiles ............................................. 1.1%
Banks & Credit .......................................... 11.6%
Beverages ............................................... 0.2%
Broadcast Media ......................................... 2.2%
Building & Construction ................................. 6.0%
Chemicals ............................................... 3.5%
Computer Software ....................................... 2.8%
Computer Systems ........................................ 3.6%
Electric Utilities ...................................... 0.2%
Electronics ............................................. 3.1%
Engineering ............................................. 1.1%
Entertainment ........................................... 0.4%
Financial Services ...................................... 1.0%
Food Processing ......................................... 0.5%
Food Wholesalers ........................................ 0.5%
Household Products ...................................... 1.0%
Insurance ............................................... 3.1%
Machinery ............................................... 1.8%
Manufacturing ........................................... 6.1%
Medical ................................................. 1.5%
Metals & Minerals ....................................... 2.6%
Office Equipment ........................................ 0.8%
Oil ..................................................... 6.3%
Paper & Forest Products ................................. 1.8%
Pharmaceuticals ......................................... 1.3%
Publishing .............................................. 0.8%
Real Estate Development ................................. 1.5%
Retail .................................................. 1.8%
Semiconductors .......................................... 1.7%
Services ................................................ 1.3%
Steel ................................................... 0.6%
Telecommunications ...................................... 16.9%
Tobacco ................................................. 0.2%
Toys & Sporting Goods ................................... 0.7%
Transportation .......................................... 2.0%
Financial Futures & Options ............................. 0.1%
Cash and other assets, less liabilities ................. 6.9%
-----
100.0%
=====
Security Equity Fund - Select 25 Series
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
BROADCAST MEDIA - 4.1%
Clear Channel Communications, Inc.* .... 16,200 $1,293,975
COMMUNICATION EQUIPMENT - 3.7%
Lucent Technologies, Inc. .............. 17,800 1,154,775
COMPUTERS - HARDWARE - 8.4%
Dell Computer Corporation* ............. 28,600 1,195,838
Sun Microsystems, Inc.* ................ 15,300 1,422,900
----------
2,618,738
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
48
<PAGE> 49
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Equity Fund - Select 25 Series (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
COMPUTERS - SOFTWARE & SERVICES - 8.0%
America Online, Inc.* ...................... 12,800 $ 1,331,200
Microsoft Corporation* ..................... 12,900 1,168,256
----------
2,499,456
COMPUTERS - NETWORKING - 3.8%
Cisco Systems, Inc.* ....................... 17,300 1,186,131
COMPUTERS - PERIPHERALS - 4.4%
EMC Corporation* ........................... 19,300 1,378,744
DISTRIBUTION - FOOD & HEALTH - 3.7%
Cardinal Health, Inc. ...................... 21,500 1,171,750
ELECTRICAL EQUIPMENT - 3.8%
General Electric Company ................... 10,100 1,197,481
ELECTRONICS - SEMICONDUCTORS - 3.8%
Intel Corporation .......................... 15,900 1,181,569
ENTERTAINMENT - 3.9%
Time Warner, Inc. .......................... 19,900 1,208,925
FINANCIAL - DIVERSE - 3.8%
Fannie Mae ................................. 19,200 1,203,600
HEALTH CARE - DIVERSE - 3.6%
Bristol-Myers Squibb Company ............... 16,900 1,140,750
HOUSEHOLD PRODUCTS - 3.7%
Colgate-Palmolive Company .................. 25,700 1,175,775
MANUFACTURING - DIVERSIFIED - 3.9%
Tyco International, Ltd. ................... 11,700 1,208,025
MEDICAL PRODUCTS & SUPPLIES - 3.7%
Medtronic, Inc. ............................ 32,800 1,164,400
PHARMACEUTICALS - MAJOR - 7.3%
Elan Corporation PLC, ADR* ................. 36,600 1,228,388
Schering-Plough Corporation ................ 24,400 1,064,450
-----------
2,292,838
RETAIL - BUILDING SUPPLIES - 4.0%
Home Depot, Inc. ........................... 18,200 1,248,975
RETAIL - FOOD CHAINS - 3.6%
Safeway, Inc.* ............................. 29,300 1,115,231
RETAIL - GENERAL MERCHANDISE - 3.8%
Wal-Mart Stores, Inc. ...................... 25,300 1,203,331
SERVICES - ADVERTISING/MARKETING - 4.0%
Omnicom Group, Inc. ........................ 15,800 1,251,163
SERVICES - DATA PROCESSING - 4.0%
Automatic Data Processing, Inc. ............ 28,100 1,253,962
TELECOMMUNICATIONS - LONG DISTANCE - 3.9%
MCI WorldCom, Inc.* ........................ 16,900 1,214,687
-----------
Total common stocks - 96.9% ............. 30,364,281
Cash and other assets,
less liabilities - 3.1% ................ 990,616
-----------
Total net assets - 100.0% ............... $31,354,897
===========
Security Ultra Fund
<CAPTION>
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
AIR FREIGHT - 2.1%
Expeditors International of
Washington, Inc. ........................ 68,000 $ 2,182,375
BANKS - MAJOR REGIONAL - 3.0%
BankBoston Corporation ..................... 21,700 941,238
Northern Trust Corporation ................. 26,000 2,171,000
-----------
3,112,238
BIOTECHNOLOGY - 6.4%
Ligand Pharmaceuticals,
Inc. (Cl.B)* ............................ 80,000 610,000
Millennium Pharmaceuticals, Inc.* .......... 70,000 4,550,000
Celera Genomics* ........................... 34,000 1,368,500
Trimeris, Inc.* ............................ 10,800 180,225
-----------
6,708,725
BROADCAST MEDIA - 1.1%
Cinar Corporation (Cl.B) ................... 37,700 1,140,425
CHEMICALS - SPECIALTY - 2.1%
Great Lakes Chemical Company ............... 20,500 780,281
Material Sciences Corporation* ............. 105,200 1,400,475
-----------
2,180,756
COMMUNICATION EQUIPMENT - 8.0%
Comverse Technology, Inc.* ................. 85,000 8,016,562
Transcrypt International, Inc.* ............ 166,500 322,594
-----------
8,339,156
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
49
<PAGE> 50
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Ultra Fund (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE/SERVICES - 18.1%
Aspect Development, Inc.* ..................... 53,000 $ 1,341,563
Axent Technologies, Inc.* ..................... 112,000 1,449,000
Computer Sciences Corporation* ................ 27,000 1,898,437
HNC Software, Inc.* ........................... 31,900 1,266,031
Harbinger Corporation* ........................ 140,000 2,362,500
Rational Software Corporation* ................ 125,000 3,660,156
Safeguard Scientifics, Inc.* .................. 41,000 2,788,000
Take-Two Interactive Software, Inc.* .......... 50,000 553,125
VERITAS Software Corporation* ................. 46,000 3,493,125
-----------
18,811,937
ELECTRICAL EQUIPMENT - 1.5%
Maxwell Technologies, Inc.* ................... 122,000 1,601,250
ELECTRONICS - INSTRUMENTATION - 5.6%
EG&G, Inc. .................................... 44,000 1,751,750
PE Corp - PE Biosystems Group ................. 56,000 4,046,000
-----------
5,797,750
ELECTRONICS - SEMICONDUCTORS - 2.9%
JDS Uniphase Corporation* ..................... 17,200 1,957,575
S3, Inc.* ..................................... 101,000 1,054,188
-----------
3,011,763
HEALTH CARE - SPECIALIZED SERVICES - 0.4%
CryoLife, Inc.* ............................... 36,000 450,000
HOSPITAL MANAGEMENT - 0.4%
Quorom Health Group, Inc.* .................... 60,400 424,688
INSURANCE - LIFE & HEALTH - 6.0%
AFLAC, Inc. ................................... 82,000 3,433,750
Lernout & Hauspie Speech
Products N.V.* ............................. 80,000 2,790,000
-----------
6,223,750
INVESTMENT BANK/BROKERAGE - 1.4%
Legg Mason, Inc. .............................. 37,200 1,425,225
INVESTMENT MANAGEMENT - 0.3%
Internet Capital Group, Inc.* ................. 3,690 324,259
LEISURE TIME PRODUCTS - 1.2%
Hasbro, Inc. .................................. 57,000 1,221,937
MANUFACTURING - SPECIALIZED - 1.0%
Catalytica, Inc.* ............................. 72,000 1,080,000
MEDICAL PRODUCTS & SUPPLIES - 4.3%
Chromavision Medical Systems, Inc.* 29,000 362,500
CLOSURE Medical Corporation* .................. 168,000 2,278,500
Kensey Nash Corporation* ...................... 8,500 132,813
Stryker Corporation ........................... 22,000 1,124,750
Sunrise Medical, Inc.* ........................ 100,000 600,000
-----------
4,498,563
OIL - INTERNATIONAL - 1.4%
Tesoro Petroleum Corporation* ................. 85,700 1,414,050
OIL & GAS - DRILLING & EQUIPMENT - 1.5%
ENSCO International, Inc. ..................... 85,000 1,535,312
OIL & GAS - EXPLORATION & PRODUCTION - 8.0%
Anadarko Petroleum Corporation ................ 62,000 1,894,875
Apache Corporation ............................ 89,000 3,843,687
Burlington Resources, Inc. .................... 40,000 1,470,000
Ocean Energy, Inc.* ........................... 108,000 1,100,250
-----------
8,308,812
PHARMACEUTICALS - MAJOR - 6.7%
Mylan Laboratories, Inc. ...................... 126,300 2,320,763
Shire Pharmaceuticals Group PLC* .............. 65,000 1,872,812
Teva Pharmaceutical Industries,
Ltd. ADR ................................... 55,000 2,767,188
-----------
6,960,763
PUBLISHING - 0.2%
John Wiley & Sons, Inc. ....................... 13,600 213,350
PUBLISHING - NEWSPAPER - 1.6%
E.W. Scripps Company (Cl.A) ................... 34,000 1,670,250
RAILROADS - 1.4%
RailAmerica, Inc.* ............................ 150,000 1,481,250
RESTAURANTS - 2.1%
Cheesecake Factory, Inc.* ..................... 79,900 2,217,225
SERVICES - ADVERTISING/MARKETING - 3.7%
Acxiom Corporation* ........................... 133,700 2,628,041
True North Communications, Inc. ............... 35,000 1,273,125
-----------
3,901,166
SERVICES - COMMERCIAL & CONSUMER - 1.2%
Cerner Corporation* ........................... 70,000 1,067,500
FTI Consulting, Inc.* ......................... 38,900 179,913
U.S. Interactive, Inc.* ....................... 1,845 40,705
-----------
1,288,118
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
50
<PAGE> 51
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SEPTEMBER 30, 1999
Security Ultra Fund (continued)
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (continued) OF SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
SERVICES - COMPUTER SYSTEMS - 1.1%
Comdisco, Inc. ................................. 60,000 $ 1,158,750
SERVICES - DATA PROCESSING - 0.8%
DST Systems, Inc.* ............................. 13,640 775,775
SPECIALTY PRINTING - 1.0%
Valassis Communications, Inc.* ................. 23,000 1,010,562
TELECOMMUNICATIONS - CELLULAR - 0.8%
Metromedia International Group, Inc.* .......... 200,000 825,000
------------
Total common stocks - 97.3% ........................... 101,295,180
Cash and other assets, less liabilities - 2.7% ........ 2,855,447
------------
Total net assets - 100.0% ............................. $104,150,627
============
</TABLE>
The identified cost of investments owned at September 30, 1999 was the same for
book and tax purposes, except for Global Series, Total Return Series, Enhanced
Index Series, International Series and Select 25 Series for which the identified
cost for Federal Income tax purposes was $38,326,610, $11,030,905, $21,228,819,
$7,025,176 and $29,335,061, respectively.
* Non-income producing security.
ADR (American Depositary Receipt)
(1) Security is segregated as collateral for futures, forward contracts or
options.
(2) Principal amount on foriegn bond is reflected in local currency (e.g.,
Japanese yen) while market value is relected in U.S. dollars.
See accompanying notes.
- --------------------------------------------------------------------------------
51
<PAGE> 52
STATEMENTS OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Security Equity Fund
-------------------------------------------------------------
Security Total Social
Growth and Equity Global Return Awareness
Income Fund Series Series Series Series
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (identified cost:
$80,337,654, $585,582,478, $37,911,605,
$6,871,983 and $16,890,402, respectively) .. $ 81,063,037 $1,017,666,719 $ 44,795,711 $ 7,246,206 $ 21,789,740
Cash denominated in a foreign currency,
at value (identified cost: $0, $0,
$169,360, $0 and $0) ....................... -- -- 169,360 -- --
Cash ......................................... 4,299,164 40,570,374 4,633,683 720 1,398,923
Receivables:
Fund shares sold .......................... 1,389 1,265,327 269,344 -- 19,687
Securities sold ........................... 529,583 35,550,518 -- 28,687 --
Interest .................................. 43,347 93,645 15,359 497 4,430
Dividends ................................. 180,114 857,551 61,179 5,295 20,513
Foreign taxes recoverable ................. -- -- 34,359 761 --
Prepaid expenses ............................. -- -- -- 11,839 6,989
-------------- -------------- -------------- -------------- --------------
Total assets ......................... $ 86,116,634 $1,096,004,134 $ 49,978,995 $ 7,294,005 $ 23,240,282
-------------- -------------- -------------- -------------- --------------
Liabilities
Payable for:
Securities purchased ...................... $ 1,081,580 $ 12,757,434 $ 696,329 $ 29,940 $ 253,301
Fund shares redeemed ...................... 15,311 610,662 44,319 512 985
Forward foreign exchange contracts ........ -- -- 55,043 -- --
Management fees ........................... 89,002 929,473 80,719 4,594 19,141
Custodian fees ............................ -- -- -- 263 1,118
Transfer and administration fees .......... -- -- -- 1,390 4,652
Professional fees ......................... -- -- -- 4,500 7,770
12b-1 distribution plan fees .............. 9,028 149,261 17,406 3,102 9,069
Security Management Company ............... -- -- -- 1,894 --
Other payables ............................ -- -- -- 511 1,386
-------------- -------------- -------------- -------------- --------------
Total liabilities .................... 1,194,921 14,446,830 893,816 46,706 297,422
-------------- -------------- -------------- -------------- --------------
Net Assets ................................... $ 84,921,713 $1,081,557,304 $ 49,085,179 $ 7,247,299 $ 22,942,860
============== ============== ============== ============== ==============
Net assets consist of:
Paid in capital .............................. $ 81,700,500 $ 622,692,446 $ 38,923,103 $ 6,389,753 $ 17,655,178
Accumulated undistributed net investment
income (loss) .............................. 1,168,914 -- (308,258) --
Accumulated undistributed net realized gain
on sale of investments, futures, options
written and foreign currency transactions .. 1,326,916 26,780,617 3,640,274 483,367 388,344
Net unrealized appreciation in value of
investments, futures and translation
of assets and liabilities in foreign
currency ................................... 725,383 432,084,241 6,830,060 374,179 4,899,338
-------------- -------------- -------------- -------------- --------------
Total net assets ..................... $ 84,921,713 $1,081,557,304 $ 49,085,179 $ 7,247,299 $ 22,942,860
============== ============== ============== ============== ==============
Class "A" Shares
Capital shares outstanding ................... 10,426,972 92,094,962 2,022,552 306,935 557,254
Net assets ................................... $ 74,795,826 $ 917,179,093 $ 28,291,970 $ 3,586,742 $ 13,402,718
Net asset value per share .................... $ 7.17 $ 9.96 $ 13.99 $ 11.69 $ 24.05
============== ============== ============== ============== ==============
Offering price per share (net asset value
divided by 94.25%) ......................... $ 7.61 $ 10.57 $ 14.84 $ 12.40 $ 25.52
============== ============== ============== ============== ==============
Class "B" Shares
Capital shares outstanding ................... 1,415,223 16,874,037 1,530,595 316,000 391,195
Net assets ................................... $ 9,829,377 $ 159,871,666 $ 20,591,412 $ 3,652,350 $ 9,135,585
Net asset value per share .................... $ 6.95 $ 9.47 $ 13.45 $ 11.56 $ 23.35
============== ============== ============== ============== ==============
Class "C" Shares
Capital shares outstanding ................... 41,711 455,827 14,520 709 16,948
Net assets ................................... $ 296,510 $ 4,506,545 $ 201,797 $ 8,207 $ 404,557
Net asset value per share .................... $ 7.11 $ 9.89 $ 13.90 $ 11.58 $ 23.87
============== ============== ============== ============== ==============
</TABLE>
See accompanying notes.
- -------------------------------------------------------------------------------
52
<PAGE> 53
STATEMENTS OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Security Equity Fund
----------------------------------------------------------
Small Enhanced Security
Value Company Index International Select 25 Ultra
Series Series Series Series Series Fund
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at value (identified cost:
$28,368,176, $14,873,206, $21,208,387,
$6,603,956, $28,966,594 and
$68,730,207, respectively) ............ $ 33,544,481 $ 19,243,216 $ 20,726,062 $ 6,933,189 $ 30,364,281 $101,295,180
Cash denominated in a foreign
currency, at value (identified cost:
$0, $0, $0 $60,065, $0 and $0,) ....... -- -- -- 60,203 -- --
Cash .................................... 1,236,940 1,302,902 1,523,964 447,079 1,629,718 2,570,034
Receivables:
Fund shares sold ...................... -- 4,301 189,316 11,623 261,575 461,633
Securities sold ....................... 84,828 143,425 12,817 78,581 -- 6,941
Variation margin receivable ........... -- -- 54,900 -- -- --
Interest .............................. 2,806 7,877 8,560 1,329 3,655 13,779
Dividends ............................. 38,655 -- 20,012 8,499 13,741 35,156
Security Management Company ............. -- -- -- 5,351 -- --
Foreign taxes recoverable ............... -- -- -- 10,151 -- --
Prepaid expenses ........................ 10,489 6,169 12,007 9,247 13,899 --
------------ ------------ ------------ ------------ ------------ ------------
Total assets .................... $ 34,918,199 $ 20,707,890 $ 22,547,638 $ 7,565,252 $ 32,286,869 $104,382,723
------------ ------------ ------------ ------------ ------------ ------------
Liabilities
Payable for:
Securities purchased .................. $ 1,225,925 $ 488,882 $ 25,596 $ 42,693 $ 858,197 $ 39,141
Fund shares redeemed .................. 14,748 2,038 62,514 -- -- 85,675
Management fees ....................... 27,667 -- 13,986 6,699 18,697 101,582
Custodian fees ........................ 1,502 6,459 7,402 27,500 3,150 --
Transfer and administration fees ...... 5,183 2,403 2,664 3,062 5,644 --
Professional fees ..................... 6,000 6,000 3,500 3,500 3,500 --
12b-1 distribution plan fees .......... 12,129 4,703 46,549 18,621 42,602 5,698
Other payables ........................ 1,176 347 152 200 182 --
------------ ------------ ------------ ------------ ------------ ------------
Total liabilities ............... 1,294,330 510,832 162,363 116,825 931,972 232,096
------------ ------------ ------------ ------------ ------------ ------------
Net Assets .............................. $ 33,623,869 $ 20,197,058 $ 22,385,275 $ 7,448,427 $ 31,354,897 $104,150,627
============ ============ ============ ============ ============ ============
Net assets consist of:
Paid in capital ......................... $ 27,333,384 $ 15,709,639 $ 22,807,956 $ 7,538,997 $ 30,325,677 $ 68,521,681
Undistributed net investment income ..... -- -- -- 14,551 -- --
Accumulated undistributed net
realized gain (loss) on sale of
investments, futures, options
written and foreign currency
transactions .......................... 1,114,180 117,409 216,579 (421,220) (368,467) 3,063,973
Net unrealized appreciation
(depreciation) in value of
investments, futures and translation
of assets and liabilities in
foreign currency ...................... 5,176,305 4,370,010 (639,260) 316,099 1,397,687 32,564,973
------------ ------------ ------------ ------------ ------------ ------------
Total net assets ........................ $ 33,623,869 $ 20,197,058 $ 22,385,275 $ 7,448,427 $ 31,354,897 $104,150,627
============ ============ ============ ============ ============ ============
Class "A" Shares
Capital shares outstanding .............. 1,373,613 1,300,707 756,039 302,121 1,326,606 10,475,124
Net assets .............................. $ 22,803,725 $ 16,877,365 $ 7,588,806 $ 2,927,993 $ 13,975,349 $ 96,237,593
Net asset value per share ............... $ 16.60 $ 12.98 $ 10.04 $ 9.69 $ 10.53 $ 9.19
============ ============ ============ ============ ============ ============
Offering price per share (net asset value
divided by 94.25%) .................... $ 17.61 $ 13.77 $ 10.65 $ 10.28 $ 11.17 $ 9.75
============ ============ ============ ============ ============ ============
Class "B" Shares
Capital shares outstanding .............. 595,492 191,462 960,212 210,085 1,229,413 915,847
Net assets .............................. $ 9,682,179 $ 2,429,697 $ 9,591,332 $ 2,027,566 $ 12,937,647 $ 7,817,836
Net asset value per share ............... $ 16.26 $ 12.69 $ 9.99 $ 9.65 $ 10.52 $ 8.54
============ ============ ============ ============ ============ ============
Class "C" Shares
Capital shares outstanding .............. 68,944 69,209 520,261 257,605 420,902 10,453
Net assets .............................. $ 1,137,965 $ 889,996 $ 5,205,137 $ 2,492,868 $ 4,441,901 $ 95,198
Net asset value per share ............... $ 16.51 $ 12.86 $ 10.00 $ 9.68 $ 10.55 $ 9.11
============ ============ ============ ============ ============ ============
</TABLE>
See accompanying notes.
- -------------------------------------------------------------------------------
53
<PAGE> 54
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Security Equity Fund
-----------------------------------------------------------
Security Total Social
Growth and Equity Global Return Awareness
Income Fund Series Series Series Series
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends ................................. $ 2,047,757 $ 10,751,823 $ 766,870 $ 62,466 $ 178,658
Interest .................................. 520,748 2,362,094 147,027 63,859 48,619
------------ ------------ ------------ ------------ ------------
2,568,505 13,113,917 913,897 126,325 227,277
Less foreign tax expense ................ -- -- (29,069) (1,793) --
------------ ------------ ------------ ------------ ------------
Total investment income .............. 2,568,505 13,113,917 884,828 124,532 227,277
Expenses:
Management fees ........................... 1,101,276 11,048,439 835,806 67,956 189,229
Custodian fees ............................ -- -- -- 7,501 4,002
Transfer/maintenance fees ................. -- -- -- 10,768 29,225
Administration fees ....................... -- -- -- 49,157 16,807
Directors' fees ........................... -- -- -- 68 281
Professional fees ......................... -- -- -- 9,517 12,409
Reports to shareholders ................... -- -- -- 703 1,662
Registration fees ......................... -- -- -- 18,726 21,743
12b-1 distribution plan fees .............. 100,414 1,560,401 171,861 36,619 76,574
------------ ------------ ------------ ------------ ------------
Total expenses ............................ 1,201,690 12,608,840 1,007,667 201,015 351,932
Less reimbursement of expenses ............ -- -- -- (20,929) --
------------ ------------ ------------ ------------ ------------
Net expenses .............................. 1,201,690 12,608,840 1,007,667 180,086 351,932
------------ ------------ ------------ ------------ ------------
Net investment income (loss) .............. 1,366,815 505,077 (122,839) (55,554) (124,655)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments ............................... 1,499,433 32,211,396 4,188,214 483,550 389,442
Foreign currency transactions ............. -- -- (514,981) (29,025) --
------------ ------------ ------------ ------------ ------------
Net realized gain .................... 1,499,433 32,211,396 3,673,233 454,525 389,442
Unrealized appreciation (depreciation)
during the period on:
Investments ............................... 7,103,219 152,612,833 7,681,768 717,242 3,012,833
Translation of assets and liabilities
in foreign currencies ................... -- -- (87,963) (126) --
------------ ------------ ------------ ------------ ------------
Net unrealized appreciation ............... 7,103,219 152,612,833 7,593,805 717,116 3,012,833
------------ ------------ ------------ ------------ ------------
Net gain ................................ 8,602,652 184,824,229 11,267,038 1,171,641 3,402,275
------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ......... $ 9,969,467 $185,329,306 $ 11,144,199 $ 1,116,087 $ 3,277,620
============ ============ ============ ============ ============
</TABLE>
See accompanying notes.
- -------------------------------------------------------------------------------
54
<PAGE> 55
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1999,
EXCEPT AS NOTED.
<TABLE>
<CAPTION>
Security Equity Fund
----------------------------------------------------------------
Small Enhanced Security
Value Company Index International Select 25 Ultra
Series Series Series Series Series Fund
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends .................................. $ 204,916 $ 2,658 $ 126,409 $ 82,269 $ 49,316 $ 324,250
Interest ................................... 23,254 57,810 79,189 13,306 41,23190,697
---------- ---------- --------- --------- ---------- -------------
228,170 60,468 205,598 95,575 90,547 414,947
Less foreign tax expense ................. -- -- -- (10,497) -- --
---------- ---------- --------- --------- ---------- -------------
Total investment income ................ 228,170 60,468 205,598 85,078 90,547 414,947
Expenses:
Management fees ............................ 258,906 114,419 82,418 44,906 95,115 1,137,409
Custodian fees ............................. 4,497 18,989 14,866 87,701 7,263 --
Transfer/maintenance fees .................. 31,436 9,645 4,312 1,425 16,830 --
Administration fees ........................ 23,301 9,398 9,890 21,837 11,414 --
Directors' fees ............................ 189 196 164 164 161 --
Professional fees .......................... 7,133 6,143 3,822 4,208 3,872 --
Reports to shareholders .................... 1,807 419 67 67 99 --
Registration fees .......................... 19,040 19,987 13,256 13,982 13,212 --
12b-1 distribution plan fees ............... 88,841 21,575 81,534 28,941 85,571 69,749
Other expenses ............................. 1,138 -- -- -- -- --
---------- ---------- --------- --------- ---------- ------------
Total expenses ............................. 436,288 200,771 210,329 203,231 233,537 1,207,158
Less reimbursement of expenses ............. -- (114,419) -- (89,279) -- --
---------- ---------- --------- --------- ---------- ------------
Net expenses ............................... 436,288 86,352 210,329 113,952 233,537 1,207,158
---------- ---------- --------- --------- ---------- ------------
Net investment income (loss) ............... (208,118) (25,884) (4,731) (28,874) (142,990) (792,211)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments ................................ 1,382,995 785,644 252,100 (421,220) (368,467) 3,872,693
Futures .................................... -- -- (30,790) -- -- 175,955
Options written ............................ -- -- -- 1,610 -- --
Foreign currency transactions .............. -- -- -- 1,842 -- --
---------- ---------- --------- --------- ---------- ------------
Net realized gain (loss) ................. 1,382,995 785,644 221,310 (417,768) (368,467) 4,048,648
Unrealized appreciation (depreciation)
during the period on:
Investments ................................ 5,996,565 4,231,813 (482,325) 329,233 1,397,687 33,757,944
Futures .................................... -- -- (156,935) -- -- --
Translation of assets and liabilities
in foreign currencies .................... -- -- -- (13,134) -- --
---------- ---------- --------- --------- ---------- ------------
Net unrealized appreciation
(depreciation) ........................... 5,996,565 4,231,813 (639,260) 316,099 1,397,687 33,757,944
---------- ---------- --------- --------- ---------- ------------
Net gain (loss) .......................... 7,379,560 5,017,457 (417,950) (101,669) 1,029,220 37,806,592
---------- ---------- --------- --------- ---------- ------------
Net increase (decrease) in net assets
resulting from operations ............ $7,171,442 $4,991,573 ($422,681) ($130,543) $ 886,230 $ 37,014,381
========== ========== ========= ========= ========== ============
</TABLE>
*Period January 29,1999 (inception) through September 30, 1999.
See accompanying notes.
- --------------------------------------------------------------------------------
55
<PAGE> 56
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Security Equity Fund
------------------------------------------------------------
Security Total Social
Growth and Equity Global Return Awareness
Income Fund Series Series Series Series
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............ $ 1,366,815 $ 505,077 $ (122,839) $ (55,554) $ (124,655)
Net realized gain ....................... 1,499,433 32,211,396 3,673,233 454,525 389,442
Unrealized appreciation
during the period ..................... 7,103,219 152,612,833 7,593,805 717,116 3,012,833
------------ --------------- ------------ ----------- -----------
Net increase in net assets
resulting from operations ........ 9,969,467 185,329,306 11,144,199 1,116,087 3,277,620
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................... (367,013) (3,097,449) (13,695) (47,225) --
Class B ............................... (38,484) -- -- (14,003) --
In excess of net investment income
Class A ............................... -- -- (66,260) -- --
Net realized gain
Class A ............................... (12,948,745) (60,267,479) (1,515,813) (224,998) (154,865)
Class B ............................... (1,659,373) (10,058,359) (1,024,593) (227,702) (112,426)
------------ --------------- ------------ ----------- -----------
Total distributions to shareholders (15,013,615) (73,423,287) (2,620,361) (513,928) (267,291)
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS ...................... 4,337,737 83,066,728 9,001,395 46,655 7,068,711
------------ --------------- ------------ ----------- -----------
Total increase (decrease) in net assets (706,411) 194,972,747 17,525,233 648,814 10,079,040
------------ --------------- ------------ ----------- -----------
NET ASSETS:
Beginning of period ..................... 85,628,124 886,584,557 31,559,946 6,598,485 12,863,820
------------ --------------- ------------ ----------- -----------
End of period ........................... $ 84,921,713 $ 1,081,557,304 $49,085,179 $ 7,247,299 $22,942,860
============ =============== ============ =========== ===========
Accumulated undistributed net investment
income (loss) at end of period ..... $ 1,168,914 $ -- ($ 308,258) $ -- $ --
============ =============== ============ =========== ===========
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
56
<PAGE> 57
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1999,
EXCEPT AS NOTED.
<TABLE>
<CAPTION>
Security Equity Fund
----------------------------------------------------------------------
Small Enhanced Security
Value Company Index International Select 25 Ultra
Series Series Series Series Series Fund
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) .......... $ (208,118) $ (25,884) $ (4,731) $ (28,874) $ (142,990) $ (792,211)
Net realized gain (loss) .............. 1,382,995 785,644 221,310 (417,768) (368,467) 4,048,648
Unrealized appreciation (depreciation)
during the period ................... 5,996,565 4,231,813 (639,260) 316,099 1,397,687 33,757,944
----------- ----------- ----------- ----------- ----------- ------------
Net increase (decrease) in net assets
resulting from operations ......... 7,171,442 4,991,573 (422,681) (130,543) 886,230 37,014,381
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ............................. -- -- -- -- -- --
Class B ............................. -- -- -- -- -- --
Net realized gain:
Class A ............................. (55,560) -- -- -- -- (17,136,006)
Class B ............................. (30,703) -- -- -- -- (1,984,512)
----------- ----------- ----------- ----------- ----------- ------------
Total distributions to
shareholders .................... (86,263) -- -- -- -- (19,120,518)
NET INCREASE FROM CAPITAL
SHARE TRANSACTIONS .................... 9,023,108 11,024,528 22,807,956 7,578,970 30,468,667 13,092,243
----------- ----------- ----------- ----------- ----------- ------------
Total increase in net assets ........ 16,108,287 16,016,101 22,385,275 7,448,427 31,354,897 30,986,106
----------- ----------- ----------- ----------- ----------- ------------
NET ASSETS:
Beginning of period ................... 17,515,582 4,180,957 -- -- -- 73,164,521
----------- ----------- ----------- ----------- ----------- ------------
End of period ......................... $33,623,869 $20,197,058 $22,385,275 $ 7,448,427 $31,354,897 $104,150,627
=========== =========== =========== =========== =========== ============
Undistributed net investment
income at end of period ............... $ -- $ -- $ -- $ 14,551 $ -- $ --
=========== =========== =========== =========== =========== ============
</TABLE>
*Period from January 29, 1999 (inception) through September 30, 1999.
See accompanying notes.
- -------------------------------------------------------------------------------
57
<PAGE> 58
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Security Equity Fund
------------------------------------------------------------
Security Total
Growth and Equity Global Return
Income Fund 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
============= ============= ============= =============
Accumulated undistributed net investment income
(loss) at end of period ..................... $ 160,376 $ 2,411,996 ($ 122,744) $ 61,017
============= ============= ============= =============
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
58
<PAGE> 59
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1998, EXCEPT AS NOTED
<TABLE>
<CAPTION>
Security Equity Fund
-------------------------------------------
Social Small Security
Awareness Value Company Ultra
Series Series Series* Fund
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
<S> <C> <C> <C> <C>
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 from October 15, 1997 (inception) through September 30, 1998.
See accompanying notes.
- -------------------------------------------------------------------------------
59
<PAGE> 60
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(D) 1998(D) 1997(D) 1996(D) 1995(D)
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $7.68 $11.14 $9.05 $7.93 $6.96
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ 0.12 0.13 0.15 0.18 0.16
Net Gain (Loss) on Securities
(realized and unrealized).............................. 0.75 (0.87) 2.81 1.37 1.18
------- -------- -------- -------- --------
Total from Investment Operations........................ 0.87 (0.74) 2.96 1.55 1.34
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. (0.04) (0.13) (0.16) (0.16) (0.16)
Distributions (from Realized Gains)..................... (1.34) (2.59) (0.71) (0.27) (0.21)
------- -------- -------- -------- --------
Total Distributions.................................. (1.38) (2.72) (0.87) (0.43) (0.37)
------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................... $7.17 $7.68 $11.14 $9.05 $7.93
======= ======== ======== ======== ========
TOTAL RETURN (A)........................................ 12.00% (7.95%) 35.31% 20.31% 20.25%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $74,796 $76,371 $91,252 $73,273 $67,430
Ratio of Expenses to Average Net Assets................. 1.22% 1.21% 1.24% 1.29% 1.31%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ 1.63% 1.49% 1.53% 2.09% 2.21%
Portfolio Turnover Rate................................. 98% 144% 124% 69% 130%
</TABLE>
SECURITY GROWTH AND INCOME FUND (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------
1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $7.54 $10.99 $8.94 $7.85 $6.90
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income................................... 0.05 0.05 0.05 0.09 0.08
Net Gain (Loss) on Securities
(realized and unrealized).............................. 0.73 (0.88) 2.77 1.35 1.18
-------- -------- -------- -------- --------
Total from Investment Operations........................ 0.78 (0.83) 2.82 1.44 1.26
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. (0.03) (0.03) (0.06) (0.08) (0.09)
Distributions (from Realized Gains)..................... (1.34) (2.59) (0.71) (0.27) (0.22)
-------- -------- -------- -------- --------
Total Distributions.................................. (1.37) (2.62) (0.77) (0.35) (0.31)
-------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................... $6.95 $7.54 $10.99 $8.94 $7.85
======== ======= ======== ======== ========
TOTAL RETURN (A)........................................ 10.93% (8.95%) 34.01% 19.01% 19.07%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $9,829 $9,257 $6,737 $2,247 $1,130
Ratio of Expenses to Average Net Assets................. 2.22% 2.21% 2.24% 2.29% 2.31%
Ratio of Net Income (Loss) to Average
Net Assets............................................ 0.63% 0.59% 0.53% 1.09% 1.21%
Portfolio Turnover Rate................................. 98% 144% 124% 69% 130%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
60
<PAGE> 61
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY GROWTH AND INCOME FUND (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(J)
----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $6.87
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ 0.03
Net Gain (Loss) on Securities
(realized and unrealized).............................. 0.21
-------
Total from Investment Operations........................ 0.24
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. --
Distributions (from Realized Gains)..................... --
-------
Total Distributions.................................. --
-------
NET ASSET VALUE END OF PERIOD........................... $7.11
=======
TOTAL RETURN (A)........................................ 3.49%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $297
Ratio of Expenses to Average Net Assets................. 2.22%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ 0.62%
Portfolio Turnover Rate................................. 90%
See accompanying notes.
- --------------------------------------------------------------------------------
61
<PAGE> 62
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(D) 1998(D) 1997(D) 1996(D) 1995(D)
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $8.86 $9.09 $7.54 $6.55 $5.54
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ 0.02 0.04 0.04 0.05 0.04
Net Gain (Loss) on Securities
(realized and unrealized).............................. 1.80 0.56 2.20 1.48 1.38
-------- -------- -------- -------- --------
Total from Investment Operations........................ 1.82 0.60 2.24 1.53 1.42
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. (0.04) (0.03) (0.04) (0.06) --
Distributions (from Realized Gains)..................... (0.68) (0.80) (0.65) (0.48) (0.41)
-------- -------- -------- -------- --------
Total Distributions.................................. (0.72) (0.83) (0.69) (0.54) (0.41)
-------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................... $9.96 $8.86 $9.09 $7.54 $6.55
======== ======== ======== ======== ========
TOTAL RETURN (A)........................................ 20.66% 7.38% 32.08% 24.90% 27.77%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $917,179 $773,606 $757,520 $575,680 $440,339
Ratio of Expenses to Average Net Assets................. 1.02% 1.02% 1.03% 1.04% 1.05%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ 0.19% 0.39% 0.46% 0.75% 0.87%
Portfolio Turnover Rate................................. 36% 47% 66% 64% 95%
</TABLE>
SECURITY EQUITY FUND - EQUITY SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------
1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $8.52 $8.82 $7.36 $6.43 $5.49
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.08) (0.05) (0.04) (0.02) (0.01)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 1.71 0.55 2.15 1.45 1.36
-------- -------- -------- -------- --------
Total from Investment Operations........................ 1.63 0.50 2.11 1.43 1.35
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- -- -- (0.02) --
Distributions (from Realized Gains)..................... (0.68) (0.80) (0.65) (0.48) (0.41)
-------- -------- -------- -------- --------
Total Distributions.................................. (0.68) (0.80) (0.65) (0.50) (0.41)
-------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................... $9.47 $8.52 $8.82 $7.36 $6.43
======== ======== ======== ======== ========
TOTAL RETURN (A)........................................ 19.23% 6.38% 30.85% 23.57% 26.69%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $159,872 $112,978 $89,336 $38,822 $19,288
Ratio of Expenses to Average Net Assets................. 2.02% 2.02% 2.03% 2.04% 2.05%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.82%) (0.61%) (0.54%) (0.25%) (0.13%)
Portfolio Turnover Rate................................. 36% 47% 66% 64% 95%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
62
<PAGE> 63
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of capital stock outstanding throughout each period
SECURITY EQUITY FUND - EQUITY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
1999(D)(J)
---------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $10.13
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.05)
Net Gain (Loss) on Securities
(realized and unrealized).............................. (0.19)
-------
Total from Investment Operations........................ (0.24)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. --
Distributions (from Realized Gains)..................... --
------
Total Distributions.................................. --
------
NET ASSET VALUE END OF PERIOD........................... $9.89
======
TOTAL RETURN (A)........................................ (2.37%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $4,507
Ratio of Expenses to Average Net Assets................. 2.02%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.89%)
Portfolio Turnover Rate................................. 45%
See accompanying notes.
- --------------------------------------------------------------------------------
63
<PAGE> 64
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------
1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $11.23 $13.56 $12.42 $10.94 $10.84
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ 0.01 0.02 0.01 0.01 (0.02)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 3.71 (1.19) 2.29 1.87 0.31
-------- -------- -------- -------- --------
Total from Investment Operations........................ 3.72 (1.17) 2.30 1.88 0.29
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. (0.01) (0.09) (0.38) (0.25) --
Distributions (from Realized Gains)..................... (0.91) (1.07) (0.78) (0.15) (0.19)
In Excess of Net Investment Income..................... (0.04) -- -- -- --
-------- -------- -------- -------- --------
Total Distributions.................................. (0.96) (1.16) (1.16) (0.40) (0.19)
-------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................... $13.99 $11.23 $13.56 $12.42 $10.94
======== ======== ======== ======== ========
TOTAL RETURN (A)........................................ 34.39% (8.47%) 20.22% 17.73% 2.80%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $28,292 $18,941 $24,193 $19,644 $16,261
Ratio of Expenses to Average Net Assets................. 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ 0.11% 0.15% 0.07% 0.07% (0.17%)
Portfolio Turnover Rate................................. 141% 122% 132% 142% 141%
</TABLE>
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------
1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $10.89 $13.22 $12.18 $10.74 $10.75
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.11) (0.10) (0.11) (0.10) (0.12)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 3.58 (1.16) 2.24 1.84 0.30
-------- -------- -------- -------- --------
Total from Investment Operations........................ 3.47 (1.26) 2.13 1.74 0.18
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- -- (0.31) (0.14) --
Distributions (from Realized 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........................... $13.45 $10.89 $13.22 $12.18 $10.74
======== ======== ======== ======== ========
TOTAL RETURN (A)........................................ 33.04% (9.43%) 19.01% 16.57% 1.79%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $20,591 $12,619 $13,061 $7,285 $5,433
Ratio of Expenses to Average Net Assets................. 3.00% 3.00% 3.00% 3.00% 3.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.87%) (0.85%) (0.93%) (0.93%) (1.17%)
Portfolio Turnover Rate................................. 141% 122% 132% 142% 141%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
64
<PAGE> 65
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for each share of capital stock outstanding throughout each period
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(J)
----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $12.68
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.03)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 1.25
-------
Total from Investment Operations........................ 1.22
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. --
Distributions (from Realized Gains)..................... --
-------
Total Distributions.................................. --
-------
NET ASSET VALUE END OF PERIOD........................... $13.90
=======
TOTAL RETURN (A)........................................ 9.62%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $202
Ratio of Expenses to Average Net Assets................. 3.00%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.49%)
Portfolio Turnover Rate................................. 90%
See accompanying notes.
- --------------------------------------------------------------------------------
65
<PAGE> 66
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - TOTAL RETURN SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------
1999(C)(D)(K) 1998(C)(D) 1997(C)(D)(G) 1996(C)(D) 1995(B)(C)(D)
------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............... $10.73 $12.58 $11.06 $10.54 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)...................... (0.03) 0.08 0.17 0.25 0.04
Net Gain (Loss) on Securities
(realized and unrealized)........................ 1.90 (0.98) 1.86 0.77 0.50
-------- -------- -------- -------- --------
Total from Investment Operations.................. 1.87 (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 Realized 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..................... $11.69 $10.73 $12.58 $11.06 $10.54
======== ======== ======== ======== =========
TOTAL RETURN (A).................................. 17.84% (7.19%) 19.00% 10.01% 5.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).............. $3,587 $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...................................... (0.29%) 0.65% 1.52% 2.32% 1.33%
Portfolio Turnover Rate........................... 121% 45% 79% 75% 129%
</TABLE>
SECURITY EQUITY FUND - TOTAL RETURN SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------
1999(C)(D)(K) 1998(C)(D) 1997(C)(D)(G) 1996(C)(D) 1995(B)(C)(D)
------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD................ $10.62 $12.45 $10.97 $10.50 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)....................... (0.14) (0.03) 0.07 0.14 0.01
Net Gain (Loss) on Securities
(realized and unrealized)......................... 1.88 (0.96) 1.84 0.77 0.49
-------- -------- -------- -------- --------
Total from Investment Operations................... 1.74 (0.99) 1.91 0.91 0.50
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)............. (0.05) (0.09) (0.18) (0.27) --
Distributions (from Realized Gains)................ (0.75) (0.75) (0.25) (0.17) --
-------- -------- -------- -------- --------
Total Distributions............................. (0.80) (0.84) (0.43) (0.44) --
-------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD...................... $11.56 $10.62 $12.45 $10.97 $10.50
======== ======== ======== ======== ========
TOTAL RETURN (A)................................... 16.68% (7.99%) 17.95% 8.97% 5.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............... $3,652 $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....................................... (1.23%) (0.29%) 0.61% 1.32% 0.31%
Portfolio Turnover Rate............................ 121% 45% 79% 75% 129%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
66
<PAGE> 67
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - TOTAL RETURN SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D)(J)(K)
----------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD................ $11.48
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)....................... (0.11)
Net Gain (Loss) on Securities
(realized and unrealized)......................... 0.21
-------
Total from Investment Operations................... 0.10
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)............. --
Distributions (from Realized Gains)................ --
-------
Total Distributions............................. --
-------
NET ASSET VALUE END OF PERIOD...................... $11.58
=======
TOTAL RETURN (A)................................... 0.87%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............... $8
Ratio of Expenses to Average Net Assets............ 2.93%
Ratio of Net Investment Income (Loss) to Average
Net Assets....................................... (1.84%)
Portfolio Turnover Rate............................ 149%
See accompanying notes.
- --------------------------------------------------------------------------------
67
<PAGE> 68
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------
1999(D) 1998(C)(D) 1997(C)(D)(E)
---------- ------------ -------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $ 19.37 $17.99 $15.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.05) -- 0.08
Net Gain (Loss) on Securities
(realized and unrealized).............................. 5.09 1.42 2.91
------- ------ ------
Total from Investment Operations........................ 5.04 1.42 2.99
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- (0.04) --
Distributions (from Realized Gains)..................... (0.36) -- --
------- ------ ------
Total Distributions.................................. (0.36) (0.04) --
------- ------ ------
NET ASSET VALUE END OF PERIOD........................... $ 24.05 $19.37 $17.99
======= ====== ======
TOTAL RETURN (A)........................................ 26.12% 7.89% 19.93%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $13,403 $7,619 $6,209
Ratio of Expenses to Average Net Assets................. 1.42% 1.22% 0.67%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.22%) -- 0.57%
Portfolio Turnover Rate................................. 26% 41% 38%
</TABLE>
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------
1999(D) 1998(C)(D) 1997(C)(D)(E)
---------- ------------ -------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $ 19.01 $17.81 $15.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.30) (0.19) (0.08)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 5.00 1.39 2.89
------- ------ ------
Total from Investment Operations........................ 4.70 1.20 2.81
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- -- --
Distributions (from Realized Gains)..................... (0.36) -- --
------- ------ ------
Total Distributions.................................. (0.36) -- --
------- ------ ------
NET ASSET VALUE END OF PERIOD........................... $ 23.35 $19.01 $17.81
======= ====== ======
TOTAL RETURN (A)........................................ 24.81% 6.74% 18.73%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $ 9,136 $5,245 $3,641
Ratio of Expenses to Average Net Assets................. 2.51% 2.20% 1.84%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (1.30%) (0.98%) (0.60%)
Portfolio Turnover Rate................................. 26% 41% 38%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
68
<PAGE> 69
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(J)
-----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD................. $24.47
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)........................ (0.22)
Net Gain (Loss) on Securities
(realized and unrealized).......................... (0.38)
-------
Total from Investment Operations.................... (0.60)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).............. --
Distributions (from Realized Gains)................. --
-------
Total Distributions.............................. --
-------
NET ASSET VALUE END OF PERIOD....................... $23.87
=======
TOTAL RETURN (A).................................... (2.45%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)................ $405
Ratio of Expenses to Average Net Assets............. 2.66%
Ratio of Net Investment Income (Loss) to Average
Net Assets........................................ (1.46%)
Portfolio Turnover Rate............................. 33%
See accompanying notes.
- --------------------------------------------------------------------------------
69
<PAGE> 70
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(D) 1998(C)(D) 1997(C)(D)(F)
----------- ----------- ------------
<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)............................ (0.07) (0.02) 0.05
Net Gain (Loss) on Securities
(realized and unrealized).............................. 4.65 (0.53) 2.90
----------- ----------- ------------
Total from Investment Operations........................ 4.58 (0.55) 2.95
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- (0.05) --
Distributions (from Realized Gains)..................... (0.05) (0.28) --
----------- ----------- ------------
Total Distributions.................................. (0.05) (0.33) --
----------- ----------- ------------
NET ASSET VALUE END OF PERIOD........................... $ 16.60 $ 12.07 $12.95
=========== =========== ============
TOTAL RETURN (A)........................................ 38.06% (4.31%) 29.50%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $22,804 $10,901 $4,631
Ratio of Expenses to Average Net Assets................. 1.33% 1.27% 1.10%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.44%) (0.13%) 1.43%
Portfolio Turnover Rate................................. 79% 98% 35%
</TABLE>
SECURITY EQUITY FUND - VALUE SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
1999(D) 1998(C)(D) 1997(C)(D)(F)
----------- ----------- ------------
<S> <C> <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)............................ (0.22) (0.15) 0.01
Net Gain (Loss) on Securities
(realized and unrealized).............................. 4.59 (0.54) 2.90
----------- ----------- ------------
Total from Investment Operations........................ 4.37 (0.69) 2.91
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- -- --
Distributions (from Realized Gains)..................... (0.05) (0.28) --
----------- ----------- ------------
Total Distributions.................................. (0.05) (0.28) --
----------- ----------- ------------
NET ASSET VALUE END OF PERIOD........................... $ 16.26 $ 11.94 $ 12.91
=========== =========== ============
TOTAL RETURN (A)........................................ 36.71% (5.38%) 29.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $ 9,682 $ 6,615 $ 3,572
Ratio of Expenses to Average Net Assets................. 2.37% 2.33% 2.26%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (1.50%) (1.19%) 0.27%
Portfolio Turnover Rate................................. 79% 98% 35%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
70
<PAGE> 71
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - VALUE SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------
1999(D)(J)
----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $14.54
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.13)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 2.10
------
Total from Investment Operations........................ 1.97
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. --
Distributions (from Realized Gains)..................... --
------
Total Distributions.................................. --
------
NET ASSET VALUE END OF PERIOD........................... $16.51
======
TOTAL RETURN (A)........................................ 13.55%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $1,138
Ratio of Expenses to Average Net Assets................. 2.38%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (1.36%)
Portfolio Turnover Rate................................. 92%
See accompanying notes.
- --------------------------------------------------------------------------------
71
<PAGE> 72
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D) 1998(C)(D)(H)
------------ -----------
PER SHARE DATA
<S> <C> <C>
NET ASSET VALUE BEGINNING OF PERIOD..................... $ 8.70 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ -- (0.03)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 4.28 (1.26)
------- -------
Total from Investment Operations........................ 4.28 (1.29)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. -- (0.01)
Distributions (from Realized Gains)..................... -- --
------- -------
Total Distributions.................................. -- (0.01)
------- -------
NET ASSET VALUE END OF PERIOD........................... $ 12.98 $8.70
======= =======
TOTAL RETURN (A)........................................ 49.20% (12.95%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $16,877 $ 2,677
Ratio of Expenses to Average Net Assets................. 0.49% 1.39%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ 0.03% (0.35%)
Portfolio Turnover Rate................................. 361% 366%
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D) 1998(C)(D)(H)
------------ -----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD....................... $ 8.63 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).............................. (0.14) (0.13)
Net Gain (Loss) on Securities
(realized and unrealized)................................ 4.20 (1.24)
------ --------
Total from Investment Operations.......................... 4.06 (1.37)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................... -- --
Distributions (from Realized Gains)....................... -- --
------ --------
Total Distributions.................................... -- --
------ --------
NET ASSET VALUE END OF PERIOD............................. $12.69 $8.63
------ --------
TOTAL RETURN (A).......................................... 47.05% (13.70%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $2,430 $1,504
Ratio of Expenses to Average Net Assets................. 1.94% 2.38%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (1.41%) (1.34%)
Portfolio Turnover Rate................................. 361% 366%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
72
<PAGE> 73
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D)(J)
-------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..................... $11.16
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............................ (0.07)
Net Gain (Loss) on Securities
(realized and unrealized).............................. 1.77
-------
Total from Investment Operations........................ 1.70
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................. --
Distributions (from Realized Gains)..................... --
-------
Total Distributions.................................. --
-------
NET ASSET VALUE END OF PERIOD........................... $12.86
=======
TOTAL RETURN (A)........................................ 15.23%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).................... $890
Ratio of Expenses to Average Net Assets................. 1.47%
Ratio of Net Investment Income (Loss) to Average
Net Assets............................................ (0.95%)
Portfolio Turnover Rate................................. 374%
See accompanying notes.
- --------------------------------------------------------------------------------
73
<PAGE> 74
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(I)
----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... 0.03
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.01
------
Total from Investment Operations ............... 0.04
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... --
Distributions (from Realized Gains) ............ --
------
Total Distributions ......................... --
------
NET ASSET VALUE END OF PERIOD .................. $10.04
======
TOTAL RETURN (A) ............................... 0.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $7,589
Ratio of Expenses to Average Net Assets ........ 1.48%
Ratio of Net Investment Income (Loss) to Average
Net Assets .................................. 0.39%
Portfolio Turnover Rate ........................ 68%
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(I)
----------
PER SHARE DATA
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) ..................... 0.01
------
Total from Investment Operations ............... (0.01)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... --
Distributions (from Realized Gains) ............ --
------
Total Distributions ......................... --
------
NET ASSET VALUE END OF PERIOD .................. $ 9.99
======
TOTAL RETURN (A) ............................... (0.10%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $9,591
Ratio of Expenses to Average Net Assets ........ 2.20%
Ratio of Net Investment Income (Loss) to Average
Net Assets .................................. (0.33%)
Portfolio Turnover Rate ........................ 68%
See accompanying notes.
- --------------------------------------------------------------------------------
74
<PAGE> 75
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(I)(J)
-------------
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 ............... 0.00
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... --
Distributions (from Realized 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) ........... $5,205
Ratio of Expenses to Average Net Assets ........ 2.05%
Ratio of Net Investment Income (Loss) to Average
Net Assets .................................. (0.18%)
Portfolio Turnover Rate ........................ 68%
See accompanying notes
- --------------------------------------------------------------------------------
75
<PAGE> 76
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - INTERNATIONAL SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D)(I)
-------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $10.00
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 Realized Gains) ............ --
------
Total Distributions ......................... --
------
NET ASSET VALUE END OF PERIOD .................. $ 9.69
======
TOTAL RETURN (A) ............................... (3.10%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $2,928
Ratio of Expenses to Average Net Assets ........ 2.50%
Ratio of Net Investment Income (Loss) to Average
Net Assets .................................. (0.41%)
Portfolio Turnover Rate ........................ 115%
SELECT EQUITY FUND - INTERNATIONAL SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D)(I)
-------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.07)
Net Gain (Loss) on Securities
(realized and unrealized)...................... (0.28)
------
Total from Investment Operations................ (0.35)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... --
Distributions (from Realized Gains)............. --
------
Total Distributions.......................... --
------
NET ASSET VALUE END OF PERIOD................... $ 9.65
======
TOTAL RETURN (A)................................ (3.50%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $ 2,028
Ratio of Expenses to Average Net Assets......... 3.19%
Ratio of Net Investment Income (Loss) to Average
Net Assets................................... (1.09%)
Portfolio Turnover Rate......................... 115%
See accompanying notes
- --------------------------------------------------------------------------------
76
<PAGE> 77
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - INTERNATIONAL SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(C)(D)(I)(J)
----------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.04)
Net Gain (Loss) on Securities
(realized and unrealized)...................... (0.28)
------
Total from Investment Operations................ (0.32)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... --
Distributions (from Realized Gains)............. --
------
Total Distributions.......................... --
------
NET ASSET VALUE END OF PERIOD................... $ 9.68
======
TOTAL RETURN (A)................................ (3.20%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $2,493
Ratio of Expenses to Average Net Assets......... 2.78%
Ratio of Net Investment Income (Loss) to Average
Net Assets.................................... (0.71%)
Portfolio Turnover Rate......................... 115%
See accompanying notes.
- --------------------------------------------------------------------------------
77
<PAGE> 78
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - SELECT 25 SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(I)
----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.05)
Net Gain (Loss) on Securities
(realized and unrealized)...................... 0.58
------
Total from Investment Operations................ 0.53
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... --
Distributions (from Realized Gains)............. --
------
Total Distributions.......................... --
------
NET ASSET VALUE END OF PERIOD................... $10.53
======
TOTAL RETURN (A)................................ 5.30%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $13,975
Ratio of Expenses to Average Net Assets......... 1.48%
Ratio of Net Investment Income (Loss) to Average
Net Assets.................................... (0.75%)
Portfolio Turnover Rate......................... 14%
SELECT EQUITY FUND - SELECT 25 SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(I)
----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.09)
Net Gain (Loss) on Securities
(realized and unrealized)...................... 0.61
-------
Total from Investment Operations................ 0.52
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... --
Distributions (from Realized Gains)............. --
-------
Total Distributions.......................... --
-------
NET ASSET VALUE END OF PERIOD................... $ 10.52
=======
TOTAL RETURN (A)................................ 5.20%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $12,938
Ratio of Expenses to Average Net Assets......... 2.19%
Ratio of Net Investment Income (Loss) to Average
Net Assets................................... (1.47%)
Portfolio Turnover Rate......................... 14%
See accompanying notes
- --------------------------------------------------------------------------------
78
<PAGE> 79
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND - SELECT 25 SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(I)(J)
-------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.09)
Net Gain (Loss) on Securities
(realized and unrealized)...................... 0.64
------
Total from Investment Operations................ 0.55
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... --
Distributions (from Realized Gains)............. --
------
Total Distributions.......................... --
------
Net Asset Value End of Period................... $10.55
======
Total Return (A)................................ 5.50%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $4,442
Ratio of Expenses to Average Net Assets......... 2.07%
Ratio of Net Investment Income (Loss) to Average
Net Assets................................... (1.34%)
Portfolio Turnover Rate......................... 14%
See accompanying notes.
- --------------------------------------------------------------------------------
79
<PAGE> 80
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(D) 1998(D) 1997(D) 1996(D) 1995(D)
------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $ 7.65 $ 9.24 $ 8.25 $ 8.20 $ 6.82
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (loss).................... (0.06) (0.06) (0.08) (0.05) (0.02)
Net Gain (Loss) on Securities
(realized and unrealized)...................... 3.51 (1.06) 1.65 1.10 1.54
------- -------- -------- ------- -------
Total from Investment Operations................ 3.45 (1.12) 1.57 1.05 1.52
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... -- -- -- -- --
Distributions (from Realized Gains)............. (1.91) (0.47) (0.58) (1.00) (0.14)
------- -------- -------- ------- -------
Total Distributions.......................... (1.91) (0.47) (0.58) (1.00) (0.14)
------- -------- -------- ------- -------
NET ASSET VALUE END OF PERIOD................... $ 9.19 $ 7.65 $ 9.24 $ 8.25 $ 8.20
======= ======== ======== ======= =======
TOTAL RETURN (A)................................ 50.91% (12.45%) 20.57% 15.36% 22.69%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $96,238 $67,554 $84,504 $74,230 $66,052
Ratio of Expenses to Average Net Assets......... 1.21% 1.23% 1.71% 1.31% 1.32%
Ratio of Net Investment Income (Loss) to Average
Net Assets.................................... (0.77%) (0.64%) (1.01%) (0.61%) (0.31%)
Portfolio Turnover Rate......................... 54% 116% 68% 161% 180%
SECURITY ULTRA FUND (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------
1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
------- -------- -------- ------- -------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $ 7.28 $ 8.90 $ 8.03 $ 8.11 $ 6.81
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (loss).................... (0.14) (0.14) (0.15) (0.13) (0.09)
Net Gain (Loss) on Securities
(realized and unrealized)...................... 3.31 (1.01) 1.60 1.05 1.53
------- -------- -------- ------- -------
Total from Investment Operations................ 3.17 (1.15) 1.45 0.92 1.44
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... -- -- -- -- --
Distributions (from Realized Gains)............. (1.91) (0.47) (0.58) (1.00) (0.14)
--------- -------- -------- --------- ---------
Total Distributions.......................... (1.91) (0.47) (0.58) (1.00) (0.14)
--------- -------- -------- --------- ---------
NET ASSET VALUE END OF PERIOD................... $ 8.54 $ 7.28 $ 8.90 $ 8.03 $ 8.11
========= ======== ======== ========= =========
TOTAL RETURN (A)................................ 49.39% (13.30%) 19.58% 13.81% 21.53%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $ 7,818 $ 5,610 $ 5,964 $ 2,698 $ 5,428
Ratio of Expenses to Average Net Assets......... 2.21% 2.23% 2.71% 2.31% 2.32%
Ratio of Net Investment Income (Loss) to Average
Net Assets.................................... (1.77%) (1.64%) (2.01%) (1.61%) (1.31%)
Portfolio Turnover Rate......................... 54% 116% 68% 161% 180%
</TABLE>
See accompanying notes.
- --------------------------------------------------------------------------------
80
<PAGE> 81
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY ULTRA FUND (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
1999(D)(J)
-------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $ 8.20
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.07)
Net Gain (Loss) on Securities
(realized and unrealized)...................... 0.98
------
Total from Investment Operations................ 0.91
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... --
Distributions (from Realized Gains)............. --
------
Total Distributions.......................... --
------
NET ASSET VALUE END OF PERIOD................... $ 9.11
======
TOTAL RETURN (A)................................ 11.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $ 95
Ratio of Expenses to Average Net Assets......... 2.21%
Ratio of Net Investment Income (Loss) to Average
Net Assets................................... (1.75%)
Portfolio Turnover Rate......................... 54%
(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) Security Total Return 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.
(c) Fund expenses were reduced by the Investment Manager during the period and
expense ratios absent such reimbursement would have been as follows:
1995 1996 1997 1998 1999
Total Return Series Class A 3.6% 3.1% 2.4% 2.5% 2.3%
Class B 4.7% 3.9% 3.3% 3.4% 3.2%
Class C N/A N/A N/A N/A 3.2%
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% 1.5%
Class B N/A N/A N/A 3.4% 2.9%
Class C N/A N/A N/A N/A 2.5%
International Series Class A N/A N/A N/A N/A 4.7%
Class B N/A N/A N/A N/A 5.4%
Class C N/A N/A N/A N/A 5.0%
(d) Net investment income (loss) was computed using average shares outstanding
throughout the period.
(e) 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.
(f) 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.
(g) Meridian Investment Management Corporation (Meridian) became the sub-advisor
of Total Return Series effective August 1, 1997. Prior to August 1, 1997
Security Management Company, LLC (SMC) paid Templeton/Franklin Investment
Services, Inc. and Meridian for research services provided to Total Return
Series.
(h) 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.
(i) 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.
(j) Class "C" Shares were initially offered for sale on January 29, 1999.
Percentage amounts for the period, except total return, have been
annualized.
(k) Prior to May 15, 1999 SMC paid Meridian for sub-advisory services provided
to Total Return Series. Effective May 15,1999 the sub-advisory contract with
Meridian was terminated and SMC continued to provide advisory services to
the Total Return Series.
- --------------------------------------------------------------------------------
81
<PAGE> 82
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SEPTEMBER 30, 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. Effective May 15, 1999 Asset Allocation Series of Equity Fund
changed its name to Total Return Series. 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. Class B shares are offered
without a front-end sales charge but incur additional class-Dspecific 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
(OCO 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' 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 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 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.
These contracts involve market risk in excess of the amount reflected in the
statements of assets and liabilities. 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 and Income Fund, 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. Upon entering into a futures
contract, the Funds are required to deposit and maintain as collateral either
cash or securities, representing the initial margin, equal to a
- --------------------------------------------------------------------------------
82
<PAGE> 83
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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, the deferral of post-October losses and mark-to-market of futures and
foreign exchange contracts.
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 and 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, 1.50% 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 SeriesO net assets and 1.50% of the remaining
average net assets of the Series for the fiscal year. Additionally, SMC agrees
to assume all of the FundsO 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 Social Awareness,
Value and Small Company Series, and 1.10% for International Series. For the
period October 1, 1998 to July 31, 1999 management fees were payable to SMC
under an investment advisory contract at an annual rate of 1.0% of the average
daily net assets for Total Return Series. Effective August 1, 1999, this annual
rate changed to 0.75%.
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 the administrative services, SMC receives, from Total Return
Series, a 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 period
October 1, 1998 to July 31, 1999. Effective August 1, 1999, the administrative
fee is .09% of the average daily net assets of the Series. 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, or (i) $30,000
for the year ended January 31, 2000, (ii) $45,000 for the year ended January 31,
2001 and (iii) $60,000 for the year ended January 31, 2002. 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, for
those related to 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%
For the period October 1, 1998 to May 14, 1999, SMC paid Meridian Investment
Management Corporation for subadvisory services provided to the Total Return
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> 84
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:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
Less Than $150 Million......................... .50%
$150 Million to $500 Million................... .45%
$500 Million or more........................... .40%
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:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
Less Than $100 Million......................... .20%
$100 Million to $300 Million................... .15%
$300 Million or more........................... .13%
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:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
Less Than $200 Million......................... .60%
$200 Million or more........................... .55%
SMC has agreed to limit the total expenses of the Enhanced Index Series and
Select 25 Series to 1.75% of the average daily net assets, Total Return Series,
Social Awareness Series, Value Series, and the Small Company Series to 2.00% of
the average daily net assets, and the International Series to 2.25% of the
average daily net assets, 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 eliminated at any time without notice
to shareholders. SMC waived management fees for the Small Company Series through
September 30, 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. 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
FundOs 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 currently being
waived.
Security Distributors, Inc. (SDl), a wholly-owned subsidiary of Security
Benefit Group, Inc. and the national distributor of the Funds, receives 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, as follows:
<TABLE>
<CAPTION>
SDI SDI 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 $10,480 $ 20,167 $100 $ 52,702 $ 77,481 $2,427
Security Equity Fund:
Equity Series 160,666 161,304 731 1,200,901 1,583,195 31,272
Global Series 3,301 17,455 N 25,393 36,803 2,395
Total Return Series 1,156 2,420 -- 5,296 10,187 114
Social Awareness Series 193,400 7,142 -- 159,666 121,903 2,749
Value Series 8,929 26,286 100 64,530 61,818 15,927
Small Company Series 266 1,025 -- 10,045 8,510 10,943
Enhanced Index Series 2,153 2,947 68 101,024 150,472 31,661
International Series 1,422 -- 50 15,008 14,156 3,176
Select 25 Series 10,249 11,631 152 336,236 322,126 17,119
Security Ultra Fund 7,112 4,914 -- 45,491 24,168 1,353
</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.
- --------------------------------------------------------------------------------
84
<PAGE> 85
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. UNREALIZED APPRECIATION/DEPRECIATION OF INVESTMENT SECURITIES
For federal income tax purposes, the amounts of unrealized appreciation
(depreciation) for the Fund's investments at September 30, 1999, were as
follows:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
Growth & Income Fund $7,057,694 ($6,332,311) $725,383
Security Equity Fund:
Equity Series 437,261,543 (5,177,302) 432,084,241
Global Series 9,384,118 (2,915,017) 6,469,101
Total Return Series 765,908 (4,550,607) (3,784,699)
Social Awareness Series 5,548,440 (649,102) 4,899,338
Value Series 7,361,435 (2,185,130) 5,176,305
Small Company Series 4,521,797 (151,787) 4,370,010
Enhanced Index Series 1,096,125 (1,598,882) (502,757)
International Series 273,806 (365,793) (91,987)
Select 25 Series 2,185,294 (1,156,074) 1,029,220
Security Ultra Fund 37,783,130 (5,218,157) 32,564,973
4. INVESTMENT TRANSACTIONS
Investment transactions for the period ended September 30, 1999 (excluding
overnight investments and short-term commercial paper), are as follows:
PROCEEDS
PURCHASES FROM SALES
--------- ----------
Growth & Income Fund $ 84,075,903 $ 92,621,175
Security Equity Fund:
Equity Series 430,968,788 367,353,509
Global Series 57,312,849 53,934,979
Total Return Series 8,357,858 8,695,401
Social Awareness Series 11,233,255 4,690,495
Value Series 29,466,494 20,287,317
Small Company Series 49,254,877 38,586,300
Enhanced Index Series 27,250,626 6,584,789
International Series 11,557,659 4,541,291
Select 25 Series 31,139,333 1,804,272
Security Ultra Fund 48,836,736 56,029,976
5. FORWARD FOREIGN EXCHANGE CONTRACTS
At September 30, 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>
NET
FOREIGN AMOUNT TO BE UNREALIZED
SETTLEMENT CURRENCY (RECEIVED)/PAID U.S. $ VALUE AS OF APPRECIATION
CURRENCY TYPE DATE TO BE DELIVERED IN U.S. $ SEPTEMBER 30, 1999 (DEPRECIATION)
- -------- ---- ---- --------------- --------- ------------------ --------------
Global Series
- -------------
<S> <C> <C> <C> <C> <C> <C>
Japanese Yen Short 12/08/99 (142,356,000) $(1,296,504) $(1,351,547) $(55,043)
International Series
- --------------------
Japanese Yen Short 10/12/99 (38,626,000) (350,000) (363,280) (13,280)
Japanese Yen Short 10/12/99 (33,112,800) (300,000) (311,429) (11,429)
Japanese Yen Short 10/12/99 (18,284,875) (175,000) (171,971) 3,029
Japanese Yen Long 10/12/99 55,191,944 511,411 519,085 7,674
Japanese Yen Long 10/12/99 16,546,856 156,169 155,625 (544)
--------
($14,550)
========
</TABLE>
6. OPEN FUTURES CONTRACTS
At September 30, 1999, the Enhanced Index Series had the following open
futures contract:
NUMBER OF CONTRACT MARKET UNREALIZED
CURRENCY CONTRACTS EXPIRATION DATE AMOUNT VALUE GAIN/(LOSS)
- -------- --------- --------------- ------ ----- -----------
S&P 500 Index 12 12/16/99 $4,051,535 $3,894,600 $(156,935)
At September 30, 1999, the market value of assets pledged to cover margin
requirements for open futures contracts was $6,382,416.
- --------------------------------------------------------------------------------
85
<PAGE> 86
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
7. 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 1999 1999 1999 Increase/ Increase/
Shares Amount Shares Amount Shares Amount (Decrease) (Decrease)
Sold Sold Reinvested Reinvested Redeemed Redeemed Shares Amount
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth & Income Fund
Class A shares 673,512 $ 5,147,174 1,799,088 $12,417,291 (1,994,458) ($14,859,162) 478,142 $ 2,705,303
Class B shares 383,324 2,857,782 247,855 1,670,300 (444,025) (3,216,919) 187,154 1,311,163
Class C shares 43,144 332,472 -- -- (1,433) (11,201) 41,711 321,271
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 1,099,980 $ 8,337,428 2,046,943 $14,087,591 (2,439,916) ($18,087,282) 707,007 $ 4,337,737
========== ============ ========= =========== =========== ============= ========= ===========
Equity Series
Class A shares 13,420,421 $132,649,509 6,045,433 $59,027,585 (14,665,109) ($147,063,933) 4,800,745 $44,613,161
Class B shares 8,372,638 79,823,484 1,056,640 9,899,655 (5,823,017) (55,932,934) 3,606,261 33,790,205
Class C shares 466,193 4,768,942 -- -- (10,366) (105,580) 455,827 4,663,362
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 22,259,252 $217,241,935 7,102,073 $68,927,240 (20,498,492) ($203,102,447) 8,862,833 $83,066,728
========== ============ ========= =========== =========== ============= ========= ===========
Global Series
Class A shares 695,668 $ 8,911,418 130,230 $ 1,583,863 (490,657) ($6,276,602) 335,241 $ 4,218,679
Class B shares 692,033 8,616,997 86,877 1,024,274 (407,260) (5,056,378) 371,650 4,584,893
Class C shares 14,520 197,823 -- -- -- -- 14,520 197,823
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 1,402,221 $ 17,726,238 217,107 $ 2,608,137 (897,917) (11,332,980) 721,411 $ 9,001,395
========== ============ ========= =========== =========== ============= ========= ===========
Total Return Series
Class A shares 31,506 $ 368,718 24,537 $ 271,998 (56,089) ($652,076) (46) ($11,360)
Class B shares 27,410 315,455 21,691 239,384 (44,246) (505,377) 4,855 49,462
Class C shares 709 8,553 -- -- -- -- 709 8,553
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 59,625 $ 692,726 46,228 $ 511,382 (100,335) ($1,157,453) 5,518 $ 46,655
========== ============ ========= =========== =========== ============= ========= ===========
Social Awareness Series
Class A shares 306,741 $ 7,392,701 6,458 $ 147,295 (149,302) ($3,600,362) 163,897 $ 3,939,634
Class B shares 204,928 4,817,870 4,916 109,778 (94,506) (2,217,147) 115,338 2,710,501
Class C shares 16,960 418,879 -- -- (12) (303) 16,948 418,576
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 528,629 $ 12,629,450 11,374 $ 257,073 (243,820) ($5,817,812) 296,183 $ 7,068,711
========== ============ ========= =========== =========== ============= ========= ===========
Value Series
Class A shares 749,287 $ 11,366,515 3,927 $ 54,487 (283,023) ($4,222,754) 470,191 $ 7,198,248
Class B shares 177,704 2,663,312 2,087 28,596 (138,360) (1,970,978) 41,431 720,930
Class C shares 69,766 1,117,339 -- -- (822) (13,409) 68,944 1,103,930
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 996,757 $ 15,147,166 6,014 $ 83,083 (422,205) ($6,207,141) 580,566 $ 9,023,108
========== ============ ========= =========== =========== ============= ========= ===========
Small Company Series
Class A shares 1,039,226 $ 10,583,205 -- $ -- (46,168) ($479,808) 993,058 $10,103,397
Class B shares 29,971 312,814 -- -- (12,838) (128,933) 17,133 183,881
Class C shares 69,336 738,707 -- -- (127) (1,457) 69,209 737,250
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 1,138,533 $ 11,634,726 -- $ -- (59,133) ($610,198) 1,079,400 $11,024,528
========== ============ ========= =========== =========== ============= ========= ===========
Enhanced Index Series
Class A shares 814,143 $ 8,317,912 -- $ -- (58,104) ($609,377) 756,039 $7,708,535
Class B shares 973,729 9,959,395 -- -- (13,517) (140,440) 960,212 9,818,955
Class C shares 521,068 5,288,712 -- -- (807) (8,246) 520,261 5,280,466
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 2,308,940 $ 23,566,019 -- $ -- (72,428) ($758,063) 2,236,512 $22,807,956
========== ============ ========= =========== =========== ============= ========= ===========
International Series
Class A shares 307,889 $ 3,015,685 -- $ -- (5,768) ($55,982) 302,121 $ 2,959,703
Class B shares 210,293 2,081,770 -- -- (208) (2,000) 210,085 2,079,770
Class C shares 258,214 2,545,289 -- -- (609) (5,792) 257,605 2,539,497
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 776,396 $ 7,642,744 -- $ -- (6,585) ($63,774) 769,811 $ 7,578,970
========== ============ ========= =========== =========== ============= ========= ===========
Select 25 Series
Class A shares 1,447,176 $ 14,845,141 -- $ -- (120,570) ($1,239,696) 1,326,606 $13,605,445
Class B shares 1,278,626 13,090,317 -- -- (49,213) (515,290) 1,229,413 12,575,027
Class C shares 426,772 4,350,090 -- -- (5,870) (61,895) 420,902 4,288,195
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 3,152,574 $ 32,285,548 -- $ -- (175,653) ($1,816,881) 2,976,921 $30,468,667
========== ============ ========= =========== =========== ============= ========= ===========
Security Ultra Fund
Class A shares 3,546,126 $ 30,558,437 2,215,618 $16,490,845 (4,118,483) ($35,203,189) 1,643,261 $11,846,093
Class B shares 881,272 7,056,830 280,843 1,958,316 (1,016,884) (7,863,259) 145,231 1,151,887
Class C shares 11,687 105,169 -- -- (1,234) (10,906) 10,453 94,263
---------- ------------ --------- ----------- ----------- ------------- --------- -----------
Total 4,439,085 $ 37,720,436 2,496,461 $18,449,161 (5,136,601) ($43,077,354) 1,798,945 $13,092,243
========== ============ ========= =========== =========== ============= ========= ===========
</TABLE>
- --------------------------------------------------------------------------------
86
<PAGE> 87
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
1998 1998
1998 1998 1998 1998 1998 1998 Increase Increase
Shares Amount Shares Amount Shares Amount (Decrease) (Decrease)
Sold Sold Reinvested Reinvested Redeemed Redeemed Shares Amount
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
<CAPTION>
Growth & Income Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A shares 897,930 $ 8,039,594 2,491,694 $20,461,757 (1,631,465) ($ 14,689,087) 1,758,159 $13,812,264
Class B shares 777,100 6,982,465 224,071 1,801,115 (386,154) (3,361,102) 615,017 5,422,478
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 1,675,030 $ 15,022,059 2,715,765 $22,262,872 (2,017,619) ($ 18,050,189) 2,373,176 $19,234,742
========== ============ ========= =========== =========== ============ ========= ===========
Security Equity Fund
Equity Series
Class A shares 14,708,089 $136,274,032 7,660,051 $62,161,314 (18,384,656) ($169,188,732) 3,983,484 $29,246,614
Class B shares 9,679,948 87,126,289 983,955 7,737,823 (7,521,486) (67,220,998) 3,142,417 27,643,114
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 24,388,037 $223,400,321 8,644,006 $69,899,137 (25,906,142) ($236,409,730) 7,125,901 $56,889,728
========== ============ ========= =========== =========== ============ ========= ===========
Global Series
Class A shares 550,745 $ 6,756,901 178,892 $ 1,961,738 (826,479) ($ 10,210,710) (96,842) ($ 1,492,071)
Class B shares 609,174 7,257,866 101,172 1,084,862 (539,145) (6,570,649) 171,201 1,772,079
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 1,159,919 $ 14,014,767 280,064 $ 3,046,600 (1,365,624) ($ 16,781,359) 74,359 $ 280,008
========== ============ ========= =========== =========== ============ ========= ===========
Total Return Series
Class A shares 40,767 $ 477,764 26,301 $ 281,349 (70,566) ($ 834,386) (3,498) ($75,273)
Class B shares 23,179 273,444 24,152 257,508 (45,400) (518,143) 1,931 12,809
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 63,946 $ 751,208 50,453 $ 538,857 (115,966) ($ 1,352,529) (1,567) ($62,464)
========== ============ ========= =========== =========== ============ ========= ===========
Social Awareness Series
Class A shares 99,548 $ 1,947,642 705 $ 12,614 (52,024) ($ 1,015,030) 48,229 $ 945,226
Class B shares 89,089 1,754,799 -- -- (17,598) (353,596) 71,491 1,401,203
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 188,637 $ 3,702,441 705 $ 12,614 (69,622) ($ 1,368,626) 119,720 $ 2,346,429
========== ============ ========= =========== =========== ============ ========= ===========
Value Series
Class A shares 638,717 $ 8,620,440 13,847 $ 169,124 (106,666) ($ 1,448,635) 545,898 $ 7,340,929
Class B shares 368,016 4,903,668 7,210 87,953 (97,738) (1,246,510) 277,488 3,745,111
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 1,006,733 $ 13,524,108 21,057 $ 257,077 (204,404) ($2,695,145) 823,386 $11,086,040
========== ============ ========= =========== =========== ============ ========= ===========
Small Company Series
Class A shares 342,821 $ 3,335,436 113 $ 1,049 (35,285) ($ 357,569) 307,649 $2,978,916
Class B shares 182,081 1,815,706 -- -- (7,752) (81,997) 174,329 1,733,709
---------- ------------ --------- ----------- ----------- ------------ --------- -----------
Total 524,902 $ 5,151,142 113 $ 1,049 (43,037) ($ 439,566) 481,978 $4,712,625
========== ============ ========= =========== =========== ============ ========= ===========
Security Ultra Fund
Class A shares 1,810,198 $ 15,549,214 479,762 $ 3,906,218 (2,607,409) ($ 22,820,668) (317,449) ($3,365,236)
Class B shares 652,253 5,484,993 37,989 296,771 (589,552) ( 5,113,365) 100,690 668,399
---------- ------------ --------- ----------- ------------ ------------ --------- -----------
Total 2,462,451 $ 21,034,207 517,751 $ 4,202,989 (3,196,961) ($ 27,934,033) (216,759) ($2,696,837)
========== ============ ========= =========== ============ ============= ========= ===========
</TABLE>
8. FEES PAID INDIRECTLY
The Funds have directed certain portfolio trades to brokers who paid a
portion of each Fund's expenses. Fund expenses were reduced as indicated in the
table below:
FISCAL YEAR FISCAL YEAR
ENDED SEPTEMBER 30, 1999 ENDED SEPTEMBER 30, 1998
Growth & Income Fund $ 670 $ 685
Equity Series 7,860 6,614
Total Return Series 54 52
Social Awareness Series 135 90
Value Series 183 112
Select 25 Series 90 N/A
Ultra Fund 690 619
------ ------
$9,682 $8,172
====== ======
9. FEDERAL TAX MATTERS
The Fund's desiginate as capital gain dividends paid during the fiscal year
ended September 30, 1999 for the purpose of the dividends paid deduction on each
Fund's federal income tax return as follows:
Growth & Income Fund $ 7,076,990
Security Equity Fund:
Equity Series 70,506,213
Global Series 2,540,406
Total Return Series 415,141
Social Awareness Series 267,291
Value Series 1,470
Small Company Series --
Enhanced Index Series --
International Series --
Select 25 Series --
Security Ultra Fund 18,268,179
- --------------------------------------------------------------------------------
87
<PAGE> 88
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
In accordance with the provisions of the Internal Revenue Code, the
percentage of ordinary dividends (including net short-term capital gains)
attributable to the fiscal year ended September 30, 1999, which qualify for the
dividends received deduction for corporate shareholders are as follows:
Growth & Income Fund 100%
Security Equity Fund:
Equity Series 100%
Global Series 4%
Total Return Series 0%
Social Awareness Series 0%
Value Series 0%
Small Company Series 2%
Enhanced Index Series 100%
International Series 0%
Select 25 Series 0%
Security Ultra Fund 11%
10. TRANSACTIONS IN WRITTEN OPTIONS
Transactions in options written for the International Series for the period
ended September 30, 1999 were as follows:
CALL OPTIONS WRITTEN
NUMBER OF PREMIUM
CONTRACTS AMOUNT
--------- -------
Balance at Jan. 29, 1999 -- --
Opened 382,990 2,447
Expired (382,990) (2,447)
Exercised -- --
--------- -------
Balance at Sept. 30, 1999 -- --
========= =======
PUT OPTIONS WRITTEN
NUMBER OF PREMIUM
CONTRACTS AMOUNT
--------- -------
Balance at Jan. 29, 1999 -- --
Opened 236,712 962
Expired (236,712) (962)
Exercised -- --
--------- -------
Balance at Sept. 30, 1999 -- --
========= =======
- --------------------------------------------------------------------------------
88
<PAGE> 89
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Shareholders and Board of Directors
Security Growth and Income Fund, Security Equity Fund and Security Ultra Fund
We have audited the accompanying statements of assets and liabilities, including
the schedule of investments of Security Growth and Income Fund, Security Equity
Fund (comprised of the Equity, Global, Total Return, Social Awareness, Value,
Small Company, Enhanced Index, International and Select 25 Series) and Security
Ultra Fund (the Funds) as of September 30, 1999, and the related statements of
operations, changes in net assets and financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of September 30, 1999, by correspondence with the custodian
and brokers. As to certain securities relating to uncompleted transactions, we
performed other audit procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective entities/series constituting the Funds at September 30, 1999,
the results of their operations, the changes in their net assets and their
financial highlights for the periods indicated above in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Kansas City, Missouri
November 12, 1999
89
<PAGE> 90
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<PAGE> 91
(This page intentionally left blank)
<PAGE> 92
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<PAGE> 93
<TABLE>
<CAPTION>
The Security Group Security Funds
of Mutual Funds Officers and Directors
- ------------------------------------ -----------------------
<S> <C>
Security Growth and Income Fund DIRECTORS
Security Equity Fund ---------
* Equity Series
* Global Series Donald A. Chubb, Jr.
* Total Return Series John D. Cleland
* Social Awareness Series Penny A. Lumpkin
* Value Series Mark L. Morris, Jr., D.V.M.
* Small Company Series Maynard F. Oliverius
* Enhanced Index Series James R. Schmank
* International Series
* Select 25 Series OFFICERS
Security Ultra Fund --------
Security Income Fund
* Corporate Bond Series John D. Cleland, President
* U.S. Government Series James R. Schmank, Vice President
* Limited Maturity Bond Series Mark E. Young, Vice President
* High Yield Series Steven M. Bowser, Vice President, Equity Fund
Security Municipal Bond Fund Davis Eshnaur, Vice President, Equity Fund
Security Cash 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
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.
</TABLE>
- -------------------------------------- --------------------
BULK RATE
[LOGO] SECURITY DISTRIBUTORS, INC. U.S. POSTAGE PAID
PERMIT NO. 941
- -------------------------------------- CHICAGO, IL
--------------------
700 SW Harrison St.
Topeka, KS 66636-0001
SDI 604 (R9-99) 46-06040-00
