<PAGE> 1
SECURITY
FUNDS
SEMI-ANNUAL
REPORT
MARCH 31, 2000
- SECURITY ULTRA FUND
- SECURITY EQUITY FUND
- GLOBAL SERIES
- SMALL COMPANY SERIES
- VALUE SERIES
- SOCIAL AWARENESS
SERIES
- ENHANCED INDEX SERIES
- EQUITY SERIES
- INTERNATIONAL SERIES
- SELECT 25 SERIES
- TOTAL RETURN SERIES
- SECURITY GROWTH AND
INCOME FUND
SECURITY DISTRIBUTORS,
INC.
A Member of The
Security Benefit
Group of Companies
[SECURITY DISTRIBUTORS,
INC. LOGO]
<PAGE> 2
CHAIRMAN OF THE BOARD'S COMMENTARY
--------------------------------------------------------------------------------
MAY 15, 2000
[CLELAND PHOTO]
John Cleland
TO OUR SHAREHOLDERS:
While the average investor's perception that the six months ended March 31, 2000
produced very favorable market returns is accurate, when viewed in a historical
perspective, it is important to point out that returns were dramatically
different in the various market sectors. In our own portfolios the returns
varied from +94.27% in our Small Cap Series to -6.42% in our value-driven Growth
and Income Fund.(1,2) We believe it is important for investors to recognize that
this divergence among market sectors is likely to continue.
ASSET ALLOCATION CHOICES INCREASE
Not too many years ago we believed that an asset allocation strategy for
investors was centered around stocks, bonds, and cash. Today it may well be that
the more important decision is how to allocate one's equity portfolio across a
broad spectrum of equity market sectors as the divergence of returns becomes
more pronounced.
We believe the long term climate for investors remains positive. It is driven by
strong economic growth, very low inflation rates, and the continuation of strong
money flows into the markets from participants in defined contribution pension
plans. However, we expect volatility resulting from momentum-driven trading
strategies executed by a certain segment of the investment public to create
periodic, often daily "noise" that has the potential to distract investors.
MANAGEMENT RESPONSIBILITIES SHIFT
We continue to transition and expand management responsibilities in our
organization in order to provide the best possible products and services to our
shareholders. At the last meeting of the Board of Directors I was elected to the
position of Chairman of the Board and Jim Schmank was elected President of
Security Funds. As you know, Jim is now President of Security Management
Company, LLC, the investment advisor to Security Funds. You will be hearing from
both of us in the future about events of interest related to our fund family.
In the following pages the portfolio managers discuss in more detail the
performance results of their funds. As always, we thank you for your continuing
investment in Security products. We invite your questions and comments at any
time.
Sincerely,
/s/ John Cleland
John Cleland, Chairman of the Board
The Security Funds
(1) Performance figures for our funds are based on Class A shares and do not
reflect deduction of the sales charge.
(2) Performance figures are based on benchmark comparison and do not reflect
deduction of a sales charge.
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1
<PAGE> 3
PRESIDENT'S COMMENTARY
--------------------------------------------------------------------------------
MAY 15, 2000
[SCHMANK PHOTO]
James Schmank
TO OUR SHAREHOLDERS:
The business of managing your money has never been more complicated and
competitive than it is today. With a continuous stream of new investment themes
and the news media's focus on short term results, we know how confusing it is
for investors to be confident in the soundness of their investment strategies.
A LONG TERM FOCUS IS KEY FOR YOUR INVESTMENTS
Our goal is to help you stay on course and achieve your investment objectives.
We have always maintained a long term focus in our approach to managing money,
both in the investment strategies we employ in each of our portfolios and in our
overall approach to the business of being an investment advisor. We remain
committed to our current investment practices during these turbulent periods,
staying with time-tested strategies appropriate for the risk targets for each of
our portfolios. We recognize that time is always an investor's best ally in
overcoming the effects of short term market disturbances.
EXPERIENCED MANAGERS ARE BETTER EQUIPPED TO NAVIGATE VOLATILE MARKETS
We are proud of the teams we have assembled to oversee your money. Our portfolio
managers are seasoned professionals with long tenures in managing portfolios.
They have weathered many economic cycles, helping them navigate through much of
the confusion clouding the markets today. Supporting our portfolio managers are
teams of research analysts who monitor the financial soundness of the companies
included in our portfolios and search for promising new investments as well.
We appreciate the confidence you have placed in us and are fully aware that we
must continue to earn your respect. We are committed to bringing you excellent
performance results in all of the investment strategies we offer.
James Schmank, President
Security Funds
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2
<PAGE> 4
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY ULTRA FUND
MAY 15, 2000
[SCHIER PHOTO]
Jim Schier
Portfolio Manager
TO OUR SHAREHOLDERS:
Security Ultra Fund turned in a very strong performance in the first six months
of the fiscal year. The total return on the portfolio was +64.00%, outpacing the
benchmark S&P/Barra Midcap Growth Index return of +52.13% over
the same period.(1)
TECHNOLOGY CONTINUES TO LEAD THE MARKETS
Continuing the theme that provided excellent returns in fiscal year 1999, the
technology sector made the greatest contribution to total return in the six
month period. As a group, the technology stocks in the portfolio rose 127.5%
compared with the corresponding benchmark sector's return of 106.6%. Ten of our
thirty technology stocks doubled or more than doubled their prices. It seems
that the earlier in the development stages a company was, the greater its
return. The mature technology companies appear to have settled into a more
normal return pattern.
Among the strong performers, JDS Uniphase Corporation rose over 300% and Veritas
Software Corporation gained 227% during the period we held the stocks. Both of
these companies have grown in size to the point that they no longer qualify as
midcap stocks, and have been sold from the portfolio. Lernout & Hauspie Speech
Products NV also outpaced the averages, climbing 216% over the six months. This
company provides speech and language solutions for industries including the
Internet. Drivers for their performance were the unveiling of a prototype of a
handheld device with a continuous speech dictation engine for Web surfing and
e-mail, and acquisition of the company which had been their primary competitor.
CONSUMER CYCLICALS AND HEALTH CARE STOCKS WERE STRONG AS WELL
Our consumer cyclicals group did well also, gaining 64.4% on average. Three
companies that are classified in this group might more appropriately be included
in the technology sector. Safeguard Scientifics, Inc. is a diversified
information technology company that, among other things, designs
business-to-business websites. Internet Capital Group, Inc. is an Internet
holding company that operates a network of business-to-business e-commerce
companies. Cerner Corporation designs information technology solutions for
health care organizations and consumers, and saw its stock price jump after
announcing a merger with Healtheon/WebMD Corporation.
The "early stages of development" story also held true in the health care
sector, where newer biotechnology and genomics companies led in performance.
Trimeris, Inc. develops drugs that block viral infection in a unique way. Its
leading product candidate is a new and promising entry in the treatment of AIDS.
Ligand Pharmaceuticals Inc. develops drugs used to regulate hormone activated
receptors; they hold promise for gynecological disorders, some cancers, and
cardiovascular diseases. Millennium Pharmaceuticals, Inc. is also a drug
discovery and development company working on therapeutic and diagnostic health
care products and services.
NOT ALL STOCKS WERE OUTPERFORMERS
Holdings in the energy sector of the portfolio underperformed, with two laggards
doing most of the damage. Oil refiner Tesoro Petroleum Corporation fell
throughout the six month period as higher oil prices cut into its profit
margins. Oil exploration company Burlington Resources Inc. fell after announcing
it would take $265 million in charges in the fourth quarter because of
disappointing production in the Gulf of Mexico.
In the consumer staples group Cinar Corporation, which produces and distributes
nonviolent programming and educational products for children and families, fell
sharply following allegations of accounting irregularities. The outcome of the
ensuing investigation remains unclear.
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3
<PAGE> 5
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY ULTRA FUND
MAY 15, 2000
FORECASTING IS DIFFICULT IN VOLATILE MARKET PERIODS
The recent market selloff is a welcome relief from the speculative pricing
levels that have dominated in recent months. This selloff broadens the
opportunities for finding new stocks for the funds at reasonable valuations.
Many of the more mature companies look more attractive than the emerging stocks
that have run up so far in price; our focus may shift away from these emerging
sectors toward undervalued issues among the established corporations. This
shift, however, would be applied to new funds rather than a major restructuring
of the portfolio. Most of the current holdings continue to have a favorable
outlook at this time. If the technology sector should return to its high levels
of recent times we would take advantage of the opportunity to pare back on some
names in that sector.
Jim Schier
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
PE Corp--PE Biosystems Group 5.4%
Comverse Technology, Inc. 4.9%
Rational Software Corporation 4.8%
Lernout & Hauspie Speech Products N.V 4.4%
Safeguard Scientifics, Inc. 4.3%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
A Shares 91.51% 29.03% 16.89%
A Shares with sales 80.50% 27.52% 16.19%
charge
B Shares 89.66% 27.70% 20.32%
(10-19-93)
(since inception)
B Shares with CDSC 84.66% 27.55% 20.32%
(10-19-93)
(since inception)
C Shares 89.45% 66.53% N/A
(1-29-99)
(since inception)
C Shares with CDSC 88.45% 66.53% 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. Such figures would be lower if the
maximum sales charge were deducted.
Performance is attributable, in part, to unusually favorable market conditions
and may not be repeated or consistently achieved in the future.
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<PAGE> 6
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
EQUITY GLOBAL SERIES
MAY 15, 2000
[OPPENHEIMER FUNDS LOGO]
[WILBY PHOTO]
William L. Wilby
Portfolio Manager
TO OUR SHAREHOLDERS:
We are pleased that the Global Series of Security Equity Fund performed
exceptionally well during the six month period that ended March 31, 2000. The
Series provided a total return of +55.85% for the period, nearly doubling the
+28.86% return of the benchmark Morgan Stanley Capital International World
Equity Index.(1) The strong performance was primarily due to our continued focus
on growth companies that we believe may benefit from one or more major worldwide
trends: mass affluence, aging populations, new technologies and restructuring.
A LOOK BACK AT THE SIX MONTHS
The fourth quarter of 1999 (the first quarter of the Series' fiscal year) was
very positive for U.S. and foreign markets. In the United States the markets
bounced back from a midsummer decline triggered by rising interest rates.
Overseas, Japan rebounded as institutional investors directed capital to its
markets, which had become a relative bargain. Europe received a boost from
currency unification-the introduction of the euro-as well as from the removal of
trade barriers and a movement to reduce capital gains taxes.
As 2000 began, however, many markets around the globe retrenched. There were
individual pockets of strength, such as France and Sweden, but the Global
Series' investments in those countries represent only a small portion of total
assets and so contributed only a small part of the portfolio's excellent
performance.
We attribute the strong returns over the period to our very disciplined
bottom-up approach, choosing our investments one company at a time based on
their fundamental strengths and their growth prospects in light of our four
long-term global themes. In short, we look for stocks with the potential to
deliver earnings growth and share price growth in any type of market.
TRENDS AROUND THE GLOBE
In Europe the trend toward restructuring and enhancing shareholder value that
began with the formation of the European Monetary Union is picking up speed. In
January 2000, Vodaphone in the U.K. and Mannesmann in Germany merged to create
the world's largest telecommunications firm. Japan is slowly moving toward a
technology-based economy, and we expect this may increasingly replace the old
heavy-manufacturing economy that has been in decline there for some years.
In addition, we see some encouraging developments in Latin America. For example,
in March the rating agency Standard & Poor's Corporation raised Mexico's credit
rating to investment grade, signaling that perhaps the problems associated with
the 1994 devaluation of the peso are behind us.
PLANS FOR THE COMING MONTHS
Looking ahead, we remain positive in our outlook for markets in the United
States, Europe, Japan and Latin America. While we expect the U.S. stock market
to cool down as the effects of tighter monetary policy take hold, we are not
overly concerned about finding compelling investments. We believe that good,
solid companies can be found in virtually any economic environment.
The Global Series of Security Equity Fund remains well diversified, which
mitigates the risk of any single market or industry. We believe our bottom-up
"stock pickers" approach and our focus on long term trends will continue to lead
us to solid, growth-oriented companies with strong competitive positions and
high demand for their products.
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.
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5
<PAGE> 7
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
EQUITY GLOBAL SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
National Semiconductor Corporation 3.5%
Cadence Design Systems, Inc. 2.8%
Porsche AG 2.3%
Toshiba Corporation 2.1%
QUALCOMM, Inc. 2.0%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
A Shares 72.36% 23.97% 18.56%
(10-1-93)
(since inception)
A Shares with sales 62.47% 22.50% 17.49%
charge (10-1-93)
(since inception)
B Shares 70.72% 22.75% 17.64%
(10-19-93)
(since inception)
B Shares with CDSC 65.72% 22.58% 17.64%
(10-19-93)
(since inception)
C Shares 70.56% 57.41% N/A
(1-29-99)
(since inception)
C Shares with CDSC 69.56% 57.41% 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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
6
<PAGE> 8
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--SMALL CAP SERIES
MAY 15, 2000
[STRONG LOGO]
[OGNAR PHOTO]
Ronald C. Ognar
Portfolio Manager
TO OUR SHAREHOLDERS:
The Small Cap Series of Security Equity Fund experienced a strong first half of
the fiscal year, gaining 94.27% over the six months compared with a return of
+27.01% on the benchmark Russell 2000 Stock Index.(1) While the more traditional
"old economy" stocks found in the Dow Jones Industrial Average and the Standard
& Poor's 500 Stock Index made brief runs late in the period, in the end they
were outmatched by the market's demand for high-growth "new economy" technology
stocks.
REVIEWING THE SIX MONTHS
The Federal Reserve's policy-making Open Market Committee (FOMC) followed
through on its resolve to keep a lid on economic growth and asset values by
raising short term interest rates at each of four consecutive meetings during
the period. Despite the FOMC's restraining moves, fourth quarter Gross Domestic
Product grew at an extremely strong 7.3%, corporate profits continue to expand,
nonenergy inflation is scant, and consumer confidence remains at levels not seen
since the late 1960's. The FOMC's actions may have further exacerbated the
valuation discrepancy between technology and the rest of the stock market, since
investors responded by flocking to those companies producing the highest revenue
and earnings growth.
SEEKING OUT BENEFICIARIES OF THE INTERNET
Technology, oil services, biotech companies, and some select financials provided
the strongest relative performance for the Series over the six months. Within
technology, we emphasized telecommunications, semiconductors, and software in
particular. We have concentrated our investments in those companies that will
benefit directly from the networked economy. The growth of the Internet and its
acceptance as an important source of competitive advantage should continue to
enhance the prospects of companies engaged in business-to-business commerce as
well as more traditional businesses.
The Internet is not only an additional channel of distribution to customers and
suppliers, it also allows companies to streamline several aspects of their
businesses including inventory and order processing. Furthermore, we expect
strong growth to continue in wireless connectivity, Internet content, and
bandwidth expansion. We are focusing on companies doing a good job of building
brand recognition in these areas. The successful implementation of technology
and innovation of new products and services will lead the best companies to
market share gains and superior returns on capital.
THE ROAD AHEAD MAY NOT BE SMOOTH
It appears likely that further interest rate hikes lie ahead until the Federal
Open Market Committee sees a softening of the economy. Therefore, we expect the
U.S. economy to continue growing, but at a more moderate pace. Also, the second
and third quarters tend to be the most difficult for the market as the seasonal
cash flows from tax refunds and year-end bonuses wane. We will continue to focus
on well-managed growth companies that are pure plays in dynamic industries and
are providing innovative products and services. As growth investors, our team is
constantly on the lookout for investments exhibiting sustainable fundamental
improvement in order to consistently outperform the broader market averages.
Ronald C. Ognar
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge. The recent returns of the Small Cap Series are
attributable, in part, to its investments in initial public offerings and
unusually favorable market conditions. Investors should recognize that the
conditions which contributed to the Series' recent performance may not be
replicated in future periods.
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7
<PAGE> 9
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--SMALL CAP SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Digital Microwave Corporation 3.3%
Ditech Communications Corporation 2.5%
Primus Telecommunications Group, Inc. 2.4%
Titan Pharmaceuticals, Inc. 2.2%
Macrovision Corporation 2.2%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 137.44% 45.67% (10-15-97)
A Shares with sales 123.74% 42.21% (10-15-97)
charge
B Shares 134.78% 44.02% (10-15-97)
B Shares with CDSC 129.78% 43.30% (10-15-97)
C Shares 135.12% 98.89% (1-29-99)
C Shares with CDSC 134.12% 98.89% (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. Such figures would be lower if the
maximum sales charge were deducted.
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8
<PAGE> 10
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--VALUE SERIES
MAY 15, 2000
[SCHIER PHOTO]
Jim Schier
Portfolio Manager
TO OUR SHAREHOLDERS:
The Value Series of Security Equity Fund is off to a strong start in fiscal year
2000, generating a total return of +18.76% over the first six months compared
with +14.02% for the benchmark S&P Midcap Value Index in the same period.(1)
While the value components of the major markets have not done as well as their
growth counterparts, the returns on value stocks have been considerably above
their historical averages.
HEALTH CARE STOCKS LED PERFORMANCE
Health care made up 13.9% of portfolio assets, more than twice the 5.5%
weighting of the benchmark index. Returns for the portfolio group also led the
benchmark, rising 55.1% compared with 24.3% in the S&P Midcap Value Index's
health care sector. Noven Pharmaceuticals, Inc. led the group with its 126% gain
during the time it was in the portfolio. Noven develops transdermal and
transmucosal drug delivery systems and has reported record financial results
driven by excellent physician and patient acceptance of their patch products.
Also in the health care group Ligand Pharmaceuticals Inc. was a strong
performer. Ligand develops drugs used to regulate hormone activated receptors;
they hold promise for gynecological disorders, some cancers, and cardiovascular
diseases. Additionally, two generic drug stock holdings each gained over 50%
during the six month period.
FINANCIAL AND CONSUMER CYCLICAL SECTOR STOCKS ALSO OUTPERFORMED
The financial stocks in the benchmark index declined 5.3% while those in the
Value Series gained 8.2%. Financial Services company The Pioneer Group, Inc.
rose over 57% realizing most of its gain after one of its biggest stockholders
said Pioneer Group should sell its money management company. Also in the
financial sector global investment banking firm Goldman Sachs Group, Inc. saw
strong stock performance based on its twelve-month backlog of underwriting
projects.
Among our consumer cyclical holdings Cerner Corporation, which designs
information technology solutions for health care organizations and consumers,
and saw its stock price jump after announcing a merger with Healtheon/WebMD
Corporation. Acxiom Corporation, a provider of information management solutions
and information technology outsourcing services, saw its price appreciate on
strong quarterly earnings reports.
THE PERFORMERS IN A STRONG SECTOR
Although technology stocks generally led the markets upward during the six
months, two of our technology holdings were negative. Mediconsult.com, Inc.
provides consumers with medical information and education about medical
conditions. We purchased the company because we liked its prospects as an
internet health care company; however, its expenses soared after the company
made a number of acquisitions during the period. A second disappointing
technology stock was Silicon Graphics, Inc., a provider of systems which deliver
advanced 3D graphics and computing capabilities for engineering and design
professionals. Its stock fell nearly 30% after the company reported a larger
than expected loss in its fiscal first quarter.
OPPORTUNITIES ABOUND IN THE VALUE ARENA
We continue to be impressed with the wide range of investment opportunities
among value stocks. The S&P Midcap Value Index trades at less than twelve times
earnings, a level that hasn't been seen in about 15 years. This compares with
the S&P 500 Stock Index multiple of thirty times earnings and underscores the
price divergence between the technology sector and all other sectors. The
greatest challenge is finding the best investment choices in the wide range of
offerings. We have recently pared back the percentage of growth names in the
portfolio, and are more heavily value oriented than at any time in the last 18
months.
Jim Schier
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
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<PAGE> 11
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--VALUE SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Ocean Energy, Inc. 3.9%
Benchmark Electronics, Inc. 3.7%
Acxiom Corporation 3.2%
Marshall & Ilsley Corporation 3.0%
Kinder Morgan, Inc. 3.0%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 37.10% 27.50% (5-1-97)
A Shares with sales 29.19% 24.94% (5-1-97)
charge
B Shares 35.67% 26.23% (5-1-97)
B Shares with CDSC 30.67% 25.57% (5-1-97)
C Shares 35.64% 28.47% (1-29-99)
C Shares with CDSC 34.64% 28.47% (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. Such figures would be lower if the
maximum sales charge were deducted.
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<PAGE> 12
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
SOCIAL AWARENESS SERIES
MAY 15, 2000
[SHIELDS PHOTO]
Cindy Shields
Portfolio Manager
TO OUR SHAREHOLDERS:
The Social Awareness Series of Security Equity Fund gained 19.37% in the six
months ended March 31, 2000.(1) While this is a very favorable six-month gain,
it slightly lagged that of the benchmark Domini 400 Social Index which rose
21.78% over the same period.
TECHNOLOGY CONTINUES TO LEAD PERFORMANCE
The technology sector of the portfolio contributed most to total return during
the six months, with stocks in this sector gaining 58% on average. Technology
makes up 35% of the assets in the total portfolio. Returns on some of our
technology stocks were truly astounding: Analog Devices, Inc. rose 214%,
Scientific-Atlanta, Inc. was up 155%, and Cisco Systems, Inc. climbed 125%, to
name some of the stronger performers. Growing demand for all areas of
technology-wireless communications, bandwith, and digital cable deployment has
been the dominant theme behind the sharp advances in these stock prices.
Energy and transportation have also played important roles in positive
performance over the past six months. Oil services companies, including our
holdings BJ Services Company and Noble Drilling Corporation, have been
beneficiaries of renewed efforts to produce oil following the runup in energy
prices. In the transportation sector Southwest Airlines Co. gained 37% after
adding flight service to the northeastern part of the United States.
HEALTH CARE AND CONSUMER STAPLES
Although the health care sector at an 8% weighting is not a large part of the
portfolio, two of our holdings in the sector were weak performers. Medical
products manufacturer Johnson & Johnson saw its stock price decline steadily
throughout the last six months as investors became concerned about prospects for
its leading heartburn drug Propulsid. The drug was finally taken off the market
because of rising patient safety concerns. Stock of Schering-Plough Corporation
lost ground after the FDA accepted a filing for another company's generic
version of Schering's allergy drug Claritin, the patent for which expires in
2002. Shering-Plough had hoped to be able to extend the patent until 2004.
Disappointing earnings in early March was the primary drag on the consumer
staples sector of the portfolio. The earnings cloud also caused steep declines
in similar consumer product oriented companies.
Also in the consumer staples arena, The Coca-Cola Company was negatively
impacted by management's poor handling of negative incidents in their global
operations. Management has since been replaced; although they have been in place
less than six months, their actions hold promise of better things to come.
Products are being better adapted to the markets into which they are sold, and
the management of global operations is being moved into those regions instead of
remaining centralized in Atlanta, Georgia.
LOOKING AHEAD: GROWTH OR VALUE?
The big question for the markets in the months ahead is whether investors will
continue to flock to growth stocks or find value stocks more promising. Although
we believe it is too early yet to move strongly into value issues we are
watching closely and will shift if such a move seems advisable. We expect
technology stocks to remain the best growth area for some time, but beaten-down
sectors such as financial stocks will regain luster when the Federal Reserve is
through raising interest rates.
As a final note, the Commissioner of the Securities & Exchange Commission in a
recent speech to the Investment Company Institute emphasized the importance of
investment advisers for mutual funds voting proxies in accordance with their
social awareness funds' screens. We assure our shareholders that we have an
internal policy in place which outlines our intention to vote all Social
Awareness Series proxies in such a manner.
Cindy Shields
Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
--------------------------------------------------------------------------------
11
<PAGE> 13
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
SOCIAL AWARENESS SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Microsoft Corporation 7.8%
Cisco Systems, Inc. 7.2%
Intel Corporation 6.3%
Lucent Technologies, Inc. 2.8%
Wal-Mart Stores, Inc. 2.6%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 18.63% 21.57% (11-1-96)
A Shares with sales 11.80% 19.47% (11-1-96)
charge
B Shares 17.26% 20.24% (11-1-96)
B Shares with CDSC 12.26% 19.68% (11-1-96)
C Shares 17.04% 13.16% (1-29-99)
C Shares with CDSC 16.04% 13.16% (1-29-99)
</TABLE>
The performance data above represents past performance which is not predictive
of future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
12
<PAGE> 14
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
ENHANCED INDEX SERIES
MAY 15, 2000
[BANKERS TRUST LOGO]
TO OUR SHAREHOLDERS:
The Enhanced Index Series of Security Equity Fund, new to the Security Funds
family in 1999, gained 18.69% over the six month period ended March 31, 2000.(1)
This closely approximates the return of its benchmark Standard & Poor's 500
Stock Index, which gained 17.51% over the same period.
THE OPERATION OF THE PORTFOLIO
The Enhanced Index Series is designed to contain at least 80% of the companies
represented in the benchmark index. Through a selection process using
proprietary screens, the managers overweight approximately one-fourth of these
stocks which in our view have above-average potential for appreciation. We
select another one-fourth which the screens show to have below-average potential
and underweight these issues.
The proprietary screens assess stocks based on the following items: the company
reports a positive or negative earnings surprise, the company becomes an
acquisition target, it is announced that the company will be added to or deleted
from the S&P 500 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), the stock's price shows significant value based on options pricing
techniques, or if financials show downward momentum. If none of these positive
or negative screens apply, we will hold a neutral position in the stock.
Since the inception of the Series several of the proprietary screens have added
value. These include Corporate Acquisitions, Momentum, Earnings Surprise,
Seasoned Equity Offerings, and Announced Index Candidates strategies. The
screens which have detracted from return include Deep Value and Dividend Yield
strategies.
PORTFOLIO MANAGERS' OUTLOOK
The outlook for financial markets hinges most crucially on how the inevitable
rebalancing of supply and demand in the U.S. economy will ultimately play out.
We continue to believe that it is going to take some combination of higher
interest rates and softer equity markets to cool demand. We expect another fifty
basis points of interest rate increases by the Federal Reserve, coupled with
flattish equity markets over the balance of the year. This combination will
succeed in slowing demand growth by late this year or early next year to a rate
at, or slightly below, the economy's supply potential. This "soft landing" would
ease pressures on resources and keep inflation from picking up too much.
Provided the cooling in U.S. growth and U.S. financial assets is modest and
orderly, the rest of the world should take it in stride.
The key risk to this rather benign outcome is that U.S. domestic demand fails to
moderate in a smooth, timely fashion. Instead, it keeps galloping ahead,
exacerbating the supply/demand imbalance, stretching domestic resources even
more and further increasing the economy's reliance on foreign production.
Inflation pressures would presumably mount, and foreign investors might grow
wary of their burgeoning claims on U.S. assets. As a result, the ultimate
adjustment in U.S. financial markets needed to restore equilibrium would be much
more severe, and could possibly imperil the U.S. expansion, with potentially
serious repercussions for the rest of the world.
Enhanced Index Team
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
--------------------------------------------------------------------------------
13
<PAGE> 15
MANAGER'S COMMENTARY (CONTINUED)
-------------------------------------------------------------------------------
SECURITY EQUITY FUND--
ENHANCED INDEX SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Microsoft Corporation 3.9%
Cisco Systems, Inc. 3.7%
General Electric Company 3.6%
Intel Corporation 3.1%
Exxon Mobil Corporation 1.9%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 18.92% 16.17% (1-29-99)
A Shares with sales 12.10% 10.43% (1-29-99)
charge
B Shares 18.16% 15.33% (1-29-99)
B Shares with CDSC 13.16% 11.99% (1-29-99)
C Shares 18.12% 15.50% (1-29-99)
C Shares with CDSC 17.12% 15.50% (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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
14
<PAGE> 16
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--EQUITY SERIES
MAY 15, 2000
[MILBERGER PHOTO]
Terry Milberger
Senior Portfolio
Manager
TO OUR SHAREHOLDERS:
The Equity Series of Security Equity Fund returned a respectable +12.35% in the
six month period ended March 31, 2000, versus the +17.51% return of the S&P 500
Stock Index.(1) The primary reason for current performance is an overweighting
in "old economy" or traditional growth stocks, with not enough emphasis on the
more risky, yet rapidly growing "new economy" technology and telecommunications
companies.
"GROWTH AT A REASONABLE PRICE" STRATEGY
In the past, companies with annual earnings growth in the 10% to 15% range would
provide above-average market returns; in recent months the leaders have been
technology-related companies, many of which have no earnings at all.
Realizing that we must adapt to changing markets, we have increased our
technology weighting to be more in line with the 34% weighting in the benchmark
S&P 500 Index. While we owned some premier technology stocks early in the
six-month period, we simply didn't own enough of them. Our Microsoft
Corporation, Sun Microsystems, Inc., and Intel Corporation positions all
performed well for us. In recent months we have been adding to established
technology companies and some more recent entrants into the sector, including
Exodus Communications, Inc., Amdocs Limited, Network Appliance, Inc., and
Brocade Communications Systems, Inc.
THE PROCTER & GAMBLE STORY AND CONSUMER STAPLES COMPANIES
On March 7 (dubbed "Tide Tuesday" by analysts) Procter & Gamble Company's
management announced that its earnings would not meet analysts' expectations,
primarily because of the increase in raw materials costs. Procter & Gamble's
stock fell 34% that day, and took down the prices of many other stocks in the
consumer staples sector over the following days. Investors were concerned that
if Procter & Gamble had to pay higher prices for raw materials, other companies
in similar businesses would have the same problems.
Financial stocks also suffered over the period from economy-related problems.
The Federal Reserve began raising interest rates in June of 1999 and still
continues to exert upward pressure on rates. Our holdings in the banking and
insurance industries lost ground as interest rates rose and investors feared
earnings would be hurt.
OTHER NEW NAMES IN THE PORTFOLIO
Outside of the technology sector, we have been adding new names that we believe
have strong growth potential. Kohl's Corporation operates a chain of
family-oriented specialty department stores. They target the median income
customer, selling top-brand merchandise at discounted prices. Motorcycle
manufacturer Harley-Davidson, Inc. is another recent addition. Dominant in its
product niche, Harley has shown consistent earnings growth in the 20% range and
is benefiting from strong consumer confidence and the "wealth effect" that is
driving consumer spending.
DIVERSIFICATION IS THE KEY
Apart from our increase in the technology sector, our additions will not be
sector-concentrated. We are searching for excellent companies with high revenue
growth, regardless of the sector in which they are classified. We expect the
recent volatility to continue, with divergence between the "old economy" stocks
and the "new economy" companies likely to narrow. We plan to keep the portfolio
very well diversified, which we believe will minimize the impact of downturns in
any one stock's fortunes.
Terry Milberger
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
--------------------------------------------------------------------------------
15
<PAGE> 17
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--EQUITY SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Microsoft Corporation 4.4%
General Electric Company 4.2%
Cisco Systems, Inc. 4.2%
Intel Corporation 3.6%
NASDAQ--100 Shares 3.6%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
A Shares 11.02% 23.25% 17.73%
A Shares with sales 4.68% 21.79% 17.03%
charge
B Shares 9.95% 22.05% 17.97%
(10-19-93)
(since inception)
B Shares with 4.95% 21.87% 17.97%
CDSC (10-19-93)
(since inception)
C Shares 9.74% 7.63% N/A
(1-29-99)
(since inception)
C Shares with 8.74% 7.63% N/A
CDSC (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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
16
<PAGE> 18
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
INTERNATIONAL SERIES
MAY 15, 2000
[BANKERS TRUST LOGO]
<TABLE>
<C> <C> <S>
[LEVY PHOTO] [REINER PHOTO]
Michael Levy Robert Reiner
Portfolio Manager Portfolio Manager
</TABLE>
[WANG PHOTO]
Julie Wang
Portfolio Manager
TO OUR SHAREHOLDERS:
The International Series of Security Equity Fund had very favorable performance
during the first six months of the fiscal year, gaining 32.20% over the period.
Its benchmark, the MSCI EAFE Index, rose 16.08% over the same period.(1) The
portfolio managers at Bankers Trust Company, subadvisors for the Series, employ
a bottom-up stock selection process, evaluating political and economic
conditions only after selecting attractively valued, inefficiently priced
issues.
REVIEW OF EVENTS DURING THE SIX MONTHS
During the six month period growth within the global economy continued to
accelerate. Monetary policy was tightened further in all G7 countries except
Japan despite inflation remaining largely benign. While higher energy prices
were reflected in headline inflation figures, core inflation has remained more
muted. However, North American and European bond markets have suffered against
the backdrop of rising rates.
In the equity markets volatility has risen considerably for stocks in the
richly-valued technology, media and telecommunication sectors. Markets in
general began to rally strongly late in 1999 in response to the improved growth
outlook and firmer commodity prices as well as by central banks injecting excess
liquidity into the markets as a defensive measure ahead of Y2K, a surprisingly
anticlimactic event.
Landmark events such as the proposed merger of America Online and Time Warner
signaled tremendous change as so-called old economy and new economy companies
found common ground. The successful bid by Vodafone/ Airtouch for Germany's
Mannesmann demonstrated the potential for global synergies in
telecommunications. Additionally, the continued high level of corporate
restructuring within industrial Europe is expected to escalate.
Continental Europe has seen a continued acceleration of economic growth
throughout 1999 and the first quarter of 2000. France has led the recovery with
Germany patchy but clearly improving. The euro has continued to weaken against
the dollar, promoting an improving outlook for corporate Euroland where the
benefits of currency weakness are leading to higher export revenues. In the
United Kingdom growth stocks continued to appreciate but lagged their
continental European counterparts. Unlike the continent, the U.K. economy is
beginning to show some signs of slowing after a series of interest rate
increases.
The Japanese recovery remains fragile. Equity prices appear to include
expectations of a significant economic expansion despite tepid consumer demand.
Although there are early signs of restructuring, Japanese commitment to
full-scale change remains in question. While foreigners have become less
aggressive buyers of Japanese equities, domestic investors may redirect expiring
postal savings assets into domestic stocks.
MAJOR TRANSACTIONS DURING THE PERIOD
We took advantage of the strength in the European telecommunications sector by
reducing our exposure to Telecom Italia Mobile. Profits were also taken in some
of
--------------------------------------------------------------------------------
17
<PAGE> 19
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--
INTERNATIONAL SERIES
MAY 15, 2000
the competitive local exchange telecommunications carriers across continental
Europe and in the U.K. We increased our exposure to the undervalued energy and
financial sectors during the period as well. In Asia we continue to favor
semiconductors and attractively valued technology stocks. In emerging markets,
holdings were established in Embratel, the long distance telephone operator in
Brazil after a period of what we believe was unjustified underperformance.
OUR OUTLOOK AND STRATEGY FOR THE COMING MONTHS
We expect central banks in Europe and the U.S. will further tighten monetary
policy in the coming months. While some inflationary pressures are present, we
do not expect a significant upturn in core inflation as restructuring efforts,
technological innovation and deregulation continue. Improvement in core European
economies, exports and consumer spending lead us to expect continued strong
performance from this region. In the longer term, benefits of reduced tax rates
should change the corporate landscape and may serve to focus overseas investors
anew on Europe. Nevertheless, against this backdrop we continue to expect
volatility within equity markets.
Michael Levy, Robert Reiner, and 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.
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Vodafone Airtouch PLC 3.1%
Canal Plus 2.3%
Murata Manufacturing Company, Ltd. 2.1%
Nortel Networks Corporation 2.0%
Total Fina Elf S.A. (Cl. B) 1.9%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 36.86% 23.58% (1-29-99)
A Shares with sales 29.00% 17.48% (1-29-99)
charge
B Shares 35.83% 22.67% (1-29-99)
B Shares with CDSC 30.83% 19.36% (1-29-99)
C Shares 36.22% 23.08% (1-29-99)
C Shares with CDSC 35.22% 23.08% (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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
18
<PAGE> 20
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--SELECT 25 SERIES
MAY 15, 2000
[MILBERGER PHOTO]
Terry Milberger
Senior Portfolio Manager
TO OUR SHAREHOLDERS:
The Select 25 Series of Security Equity Fund returned a favorable +16.62% in the
six-month period ended March 31, 2000. The benchmark S&P/Barra Growth Index
return was +24.68% over the same period.(1) Our strategy for the Select 25
series is to construct a portfolio of 25 to 30 stocks of premier companies that
have above average revenue and earnings prospects.
RE-EXAMINING OUR STRATEGY
When performance in a portfolio lags that of its benchmark over a reported
period we take a serious look at the method we are using to implement its
strategy. The technology sector weighting in the portfolio is now over 46%, much
closer to that of the benchmark S&P/Barra Growth Index. We have recently added
companies with higher growth characteristics, including Network Appliance, Inc.,
Sanmina Corporation, Univision Communications Inc., Nextel Communications, Inc.
and Nokia Oyj. This is not to say we have abandoned all of the "old economy"
companies. Many familiar names remain in the portfolio. Among these are Walgreen
Co., Wal-Mart Stores, Inc., The Home Depot, Inc., Harley-Davidson, Inc.,
Citigroup Inc., and Colgate-Palmolive Company.
HOLDING FEWER STOCKS MEANS LARGER CONCENTRATIONS
Because the portfolio is generally limited to between twenty and thirty
holdings, a sharp move by any one company has a more pronounced impact on total
return. For example, software company BMC Software, Inc. fell 28% during the
period after reporting earnings shortfalls in two consecutive quarters. Tyco
International Ltd., a provider of fire protection systems and electronic
security services, fell sharply in the fourth quarter because of suspected
accounting regularities. We, along with many other investors, believe these
suspicions are unfounded and the stock did recover subsequently, with a 1% gain
during the six month period.
The concentration effect works both ways, however. The portfolio benefited from
a 53% gain in the shares of media company Time Warner, Inc. The appreciation in
Time Warner was related to America Online, Inc.'s agreement to purchase the
company. Medical device manufacturer Medtronic, Inc. also performed admirably,
appreciating 148% over the six-month period on favorable product news.
Once the portfolio updating process is complete, we believe the turnover will be
lower than that of the average equity portfolio. Still, we expect to be more
nimble in choosing premier growth companies that reflect the returns seen in the
benchmark index. We plan to buy these stocks and keep them in the portfolio as
long as the fundamentals and growth characteristics remain favorable.
Terry Milberger
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
--------------------------------------------------------------------------------
19
<PAGE> 21
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--SELECT 25 SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Microsoft Corporation 7.5%
General Electric Corporation 7.1%
Intel Corporation 5.4%
Cisco Systems, Inc. 5.2%
NASDAQ--100 Shares 4.3%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 18.08% 19.19% (1-29-99)
A Shares with sales 11.33% 13.31% (1-29-99)
charge
B Shares 17.42% 18.53% (1-29-99)
B Shares with CDSC 12.42% 15.20% (1-29-99)
C Shares 17.69% 18.86% (1-29-99)
C Shares with CDSC 16.69% 18.86% (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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
20
<PAGE> 22
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--TOTAL RETURN SERIES
MAY 15, 2000
[MILBERGER PHOTO]
Terry Milberger
Senior Portfolio
Manager
TO OUR SHAREHOLDERS:
The Total Return Series of Security Equity Fund lagged its benchmark in the
first half of the fiscal year. The Series returned 10.73% over the six month
period, while the S&P 500 Stock Index gained 17.51%.(1) Although the primary
detractor was an underweighting in technology stocks that can be more risky,
underperformance in other areas contributed as well.
FINANCIAL AND CONSUMER STAPLES SECTORS
Many insurance companies saw their stock prices strengthen in the second half of
1999 as Congress debated and subsequently passed legislation which would allow
banks and insurance companies to merge. Expectations were high that banks would
quickly seek out insurance companies they could acquire, but to date this hasn't
happened. As a result the stock prices which rose in anticipation of the event
have fallen in recent months. Additionally, the financial sector in general has
been weak under the cloud of increasing interest rates.
Among our consumer staples companies, The Procter & Gamble Company saw its stock
fall 31% on March 7, 2000 when the company announced its earnings would fall
short of analysts' estimates. They attributed the shortfall primarily to higher
costs of raw materials. This news caused investors to shy away from similar
companies in the sector, believing that they too might be experiencing higher
raw materials cost runups.
Also in the consumer staples sector, the stock of The Kroger Company, the
largest U.S. supermarket operator, fell 24% in December. The sell-off in Kroger
was due largely to management's underestimation of the time and cost of
integrating its recent acquisition, Fred Meyer Stores, Inc., into its
operations. In addition, the company also announced the departure of two top
Fred Meyer executives following the acquisition. We believe the integration
issues are short term and the longer term outlook remains very favorable.
SOME STRONG PERFORMERS AS WELL
Among the positive performers in the portfolio over the period were
Colgate-Palmolive Company and Kohl's Corporation. Colgate benefited from its
heavy exposure in the international markets as global economies began to recover
from their difficulties of the past two years. Kohl's Corporation operates a
chain of family-oriented specialty department stores. They target the median
income customer, selling top-brand merchandise at discounted prices. In the
strong U.S. economy consumers have been spending at an unusually rapid pace, and
Kohl's has gained from this trend.
EXPANDING THE TECHNOLOGY WEIGHTING
Although an underweighting in the technology sector detracted from total return,
those stocks we held in the sector did very well. Among these were Cisco
Systems, Inc., Intel Corporation, and Nortel Networks Corporation. We are adding
holdings in this sector, moving toward a weighting close to the 34% now in the
S&P 500 Stock Index. We plan to gradually add technology stocks at times when
the markets weaken and they can be bought at reasonable prices. We are also
diversifying broadly in the sector in order to minimize the risk of a downturn
in any one position.
STRUCTURE OF THE PORTFOLIO IN THE COMING MONTHS
We plan to keep the number of holdings in the portfolio between 70 and 80 at
this time. This diversification will help minimize the impact of a
disappointment from any one name. The holdings will be a mix of growth stocks
and value issues. At this time about two-thirds of the stocks pay dividends. In
today's market, those stocks with higher dividend streams generally have
underperformed. We are placing more emphasis on total return than on the income
stream and so we are keeping a close eye on the performance of our
dividend-paying issues, making sure they keep pace with the general markets. We
are hopeful that the restructuring of the portfolio will lead to strong
performance in the months ahead.
Terry Milberger
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
--------------------------------------------------------------------------------
21
<PAGE> 23
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--TOTAL RETURN SERIES
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
Microsoft Corporation 5.3%
Cisco Systems, Inc. 4.5%
General Electric Company 4.1%
Intel Corporation 3.8%
NASDAQ--100 Shares 2.5%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
------ ---------------
<S> <C> <C> <C>
A Shares 13.94% 11.21% (6-1-95)
A Shares with sales 7.42% 9.86% (6-1-95)
charge
B Shares 12.77% 10.15% (6-1-95)
B Shares with CDSC 7.77% 9.87% (6-1-95)
C Shares 12.44% 9.47% (1-29-99)
C Shares with CDSC 11.44% 9.47% (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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
22
<PAGE> 24
MANAGER'S COMMENTARY
--------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND
MAY 15, 2000
[MILBERGER PHOTO]
Terry Milberger
Senior Portfolio
Manager
TO OUR SHAREHOLDERS:
The first half of the fiscal year has been difficult for Security Growth and
Income Fund. Total return for the six months ended March 31, 2000 was -6.42%
while the benchmark S&P/Barra Value Index rose 9.23% over the period.(1) In
response to recent performance we have refocused our strategies and expect
favorable results more reflective of the S&P Barra Value Index in the second
half of the fiscal year.
PRIMARY FACTORS AFFECTING PERFORMANCE
The greatest contributor to negative returns over the past six months was our
small weighting in the technology sector. Stocks with high price/earnings
ratios, as is typical of many of today's technology companies, generally are not
a part of traditional growth and income portfolios. These types of stocks were
the strongest performers throughout the fourth quarter of 1999 and most of the
first quarter of 2000.
Our past orientation toward conservative value areas of the midcap and small cap
stock segments also dragged down performance as these sectors lagged their
companion growth areas of the markets. Throughout the six-month period the value
components of the S&P 500 Index and the S&P Midcap 400 Index gained only about
1/3 as much as their corresponding growth components.
STRUCTURAL CHANGES TO THE FUND
In recent weeks we have been restructuring the portfolio to take advantage of
the areas of the market that have been contributing to favorable returns. The
overall objective of the Growth and Income Fund has not changed. The prospectus
requirement that at least 25% of its assets must be securities that are income
producing is expected to reduce volatility in overall portfolio performance,
while a repositioning toward larger cap stocks should help keep returns more in
line with those of the benchmark index.
While we are maintaining our emphasis on value stocks, we are seeking those that
we believe have good growth prospects. During the last few month the technology
weighting in the portfolio has been increased from 8% to about 20%. We have
included major companies that are expected to benefit from the Internet
infrastructure buildout.
We have added some premier growth companies in other market sectors as well.
These include familiar names such as Wal-Mart Stores, Inc., General Electric
Company, Colgate-Palmolive Company, The Home Depot, Inc., Harley Davidson, Inc.,
and Cardinal Health, Inc. We have reduced the weightings in the energy sector
from 15% to about 8%, believing that oil prices are more likely to decline from
their current levels than they are to run up further. We also sold some
financial stock positions, bringing that sector's weighting down to about 19%
from its previous 25%. Although the financials are very attractively priced,
they could experience continued pressure as the Federal Reserve pursues its
strategy of increasing interest rates to slow economic activity.
CHARACTERISTICS OF THE RESTRUCTURED PORTFOLIO
After making the changes outlined in the preceding paragraphs, the average
market capitalization of the portfolio is about $125 billion. This has increased
from an average of around $35 billion at the end of December. The long term
forecasted earnings growth rate averages 16%, while the price/earnings to growth
rate is about 1.2 times (the S&P 500 Stock index averages about 2 times). The
price/earnings to growth rate shows we are buying growth at a better value than
that of the S&P Index. We believe these changes will help provide favorable and
consistent returns in the months ahead.
Terry Milberger
Senior Portfolio Manager
(1) Performance figures are based on Class A shares and do not reflect deduction
of the sales charge.
--------------------------------------------------------------------------------
23
<PAGE> 25
MANAGER'S COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND
MAY 15, 2000
---------------- PERFORMANCE ----------------
TOP 5 HOLDINGS**
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
<S> <C>
NASDAQ--100 Shares 3.6%
Microsoft Corporation 3.2%
General Electric Company 3.2%
Cisco Systems, Inc. 2.0%
J.P. Morgan & Company, Inc. 2.0%
</TABLE>
** At March 31, 2000
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
A Shares (3.59%) 12.75% 9.48%
A Shares with sales (9.08%) 11.43% 8.84%
charge
B Shares (4.70%) 11.58% 7.98%
(10-19-93)
(since inception)
B Shares with (9.47%) 11.33% 7.98%
CDSC (10-19-93)
(since inception)
C Shares (5.06%) (3.16%) N/A
(1-29-99)
(since inception)
C Shares with (6.01%) (3.16%) N/A
CDSC (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. Such figures would be lower if the
maximum sales charge were deducted.
--------------------------------------------------------------------------------
24
<PAGE> 26
SCHEDULE OF INVESTMENTS
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY GROWTH AND INCOME FUND
PRINCIPAL
AMOUNT OR
NUMBER MARKET
CORPORATE BONDS OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICAL - OTHER - 0.1%
American Eco Corporation,
9.625% - 2008................ $125,000 $ 52,188
ENERGY - REFINING - 0.2%
Crown Central Petroleum,
10.875% - 2005............... $200,000 140,500
FOOD - 0.1%
Nash Finch Company, 8.50% -
2008......................... $100,000 78,750
HEALTH CARE - 0.0%
Multicare Companies, Inc.,
9.00% - 2007................. $200,000 10,000
INSURANCE - 0.1%
General American Life Insurance
Company, 8.525% - 2027....... $75,000 73,781
MEDIA - NONCABLE - 0.1%
Golden Books Publishing, Inc.,
7.65% - 2002................. $116,000 69,600
SERVICES - 0.0%
Loewen Group, Inc., 6.70% -
1999......................... $75,000 35,812
--------------
Total corporate bonds - 0.6%... 460,631
<CAPTION>
COMMON STOCKS
-------------
AEROSPACE/DEFENSE - 1.0%
Boeing Company................. 20,000 758,750
AUTOMOBILES - 1.2%
Ford Motor Company............. 10,000 459,375
General Motors................. 5,000 414,063
--------------
873,438
BANKS - MAJOR REGIONAL - 7.1%
Bank of New York Company,
Inc.......................... 15,000 623,437
Bank One Corporation........... 31,000 1,065,625
Fifth Third Bancorp............ 5,000 315,000
FleetBoston Financial
Corporation.................. 15,000 547,500
PNC Financial Services Group... 15,900 716,494
Suntrust Banks, Inc............ 8,000 462,000
Wachovia Corporation........... 8,000 540,500
Wells Fargo & Company.......... 22,400 917,000
--------------
5,187,556
BANKS - MONEY CENTER - 4.9%
Bank of America Corporation.... 23,600 1,237,525
Chase Manhattan Corporation.... 9,500 828,281
J.P. Morgan & Company, Inc..... 11,100 1,462,425
--------------
3,528,231
</TABLE>
<TABLE>
<S> <C> <C>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BEVERAGES - ALCOHOLIC - 0.3%
Anheuser-Busch Companies,
Inc.......................... 3,600 $ 224,100
BEVERAGES - SOFT DRINK - 0.3%
PepsiCo, Inc................... 6,600 228,113
BIOTECHNOLOGY - 0.3%
Amgen, Inc.*................... 3,500 214,812
BROADCAST MEDIA - 0.8%
Clear Channel Communications,
Inc.*........................ 5,000 345,313
Univision Communications,
Inc.*........................ 1,800 203,400
--------------
548,713
CHEMICALS - BASIC - 2.0%
Air Products & Chemicals,
Inc.......................... 13,000 369,687
E.I. du Pont de Nemours &
Company...................... 13,200 697,950
Praxair, Inc................... 9,600 399,600
--------------
1,467,237
COMMUNICATION EQUIPMENT - 2.6%
Lucent Technologies, Inc....... 10,000 607,500
Motorola, Inc.................. 2,000 284,750
Nortel Networks Corporation.... 4,000 504,000
Tellabs, Inc.*................. 8,000 503,875
--------------
1,900,125
COMPUTER HARDWARE - 3.5%
Compaq Computer Corporation.... 19,000 505,875
Dell Computer Corporation*..... 5,900 318,231
Hewlett-Packard Company........ 2,000 265,125
International Business Machines
Corporation.................. 8,500 1,003,000
Sun Microsystems, Inc.*........ 5,000 468,516
--------------
2,560,747
COMPUTER SOFTWARE/SERVICES - 5.3%
America Online, Inc.*.......... 8,000 538,000
Computer Sciences
Corporation*................. 2,100 166,162
Microsoft Corporation*......... 22,000 2,337,500
Oracle Corporation*............ 6,000 468,375
Yahoo! Inc.*................... 1,900 325,613
--------------
3,835,650
COMPUTERS - PERIPHERALS - 0.5%
EMC Corporation*............... 2,700 337,500
COMPUTERS - NETWORKING - 2.0%
Cisco Systems, Inc.*........... 19,000 1,468,938
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
25
<PAGE> 27
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY GROWTH AND INCOME FUND
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
DISTRIBUTION - FOOD & HEALTH - 0.4%
Cardinal Health, Inc........... 7,000 $ 321,125
ELECTRICAL EQUIPMENT - 4.8%
Emerson Electric Company....... 18,000 951,750
General Electric Company....... 15,000 2,327,812
Sanmina Corporation............ 2,800 189,175
--------------
3,468,737
ELECTRONICS - INSTRUMENTATION - 0.0%
Sabre Holdings Corporation..... 1 8
ELECTRONICS - SEMICONDUCTORS - 2.4%
Intel Corporation.............. 11,000 1,451,312
Texas Instrument, Inc.......... 2,000 320,000
--------------
1,771,312
ENTERTAINMENT - 1.2%
Golden Books Family
Entertainment*............... 5,667 9,917
Viacom, Inc.*.................. 6,400 337,600
Walt Disney Company............ 12,700 525,462
--------------
872,979
EQUIPMENT - SEMICONDUCTORS - 0.5%
Applied Materials, Inc.*....... 3,600 339,300
FINANCIAL - DIVERSE - 3.7%
Citigroup, Inc................. 9,600 569,400
Fannie Mae..................... 19,300 1,089,244
Freddie Mac.................... 15,000 662,813
Morgan Stanley Dean Witter and
Company...................... 4,200 342,562
--------------
2,664,019
FOODS - 0.9%
Bestfoods, Inc................. 8,000 374,500
Ralston-Ralston Purina Group... 11,000 301,125
--------------
675,625
HEALTH CARE - DIVERSE - 1.7%
American Home Products
Corporation.................. 7,300 391,462
Bristol-Myers Squibb Company... 6,300 363,825
Johnson & Johnson.............. 6,900 483,431
--------------
1,238,718
HEALTH CARE - PHARMACEUTICALS - MAJOR - 1.3%
Merck & Company, Inc........... 9,000 559,125
Schering-Plough Corporation.... 9,600 352,800
--------------
911,925
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD PRODUCTS - 1.0%
Colgate-Palmolive Company...... 7,500 $ 422,813
Kimberly-Clark Corporation..... 5,500 308,000
--------------
730,813
INSURANCE - LIFE/HEALTH - 1.4%
American General Corporation... 18,000 1,010,250
INSURANCE - MULTILINE - 0.6%
American International Group,
Inc.......................... 4,000 438,000
LEISURE TIME PRODUCTS - 0.3%
Harley-Davidson, Inc........... 2,400 190,500
MACHINERY - DIVERSE - 0.9%
Deere & Company................ 9,100 345,800
Ingersoll-Rand Company......... 6,800 300,900
--------------
646,700
MANUFACTURING - DIVERSIFIED - 2.8%
Honeywell International,
Inc.......................... 4,500 237,094
Minnesota Mining &
Manufacturing Company........ 5,500 487,094
Textron, Inc................... 7,500 456,563
Tyco International, Ltd........ 7,500 374,063
United Technologies
Corporation.................. 8,000 505,500
--------------
2,060,314
MEDICAL PRODUCTS & SUPPLIES - 1.8%
Baxter International, Inc...... 15,000 940,312
Medtronic, Inc................. 7,000 360,063
--------------
1,300,375
NATURAL GAS - 1.4%
El Paso Energy Corporation..... 16,000 646,000
Williams Companies, Inc........ 8,000 351,500
--------------
997,500
OIL - DOMESTIC - 1.7%
Atlantic Richfield
Corporation.................. 6,000 510,000
Phillips Petroleum Company (NY
Shares)...................... 15,000 693,750
--------------
1,203,750
OIL - INTERNATIONAL - 5.3%
Chevron Corporation............ 8,200 757,988
Exxon Mobil Corporation........ 12,000 933,750
Royal Dutch Petroleum
Company*..................... 25,100 1,444,819
Texaco, Inc.................... 13,200 707,850
--------------
3,844,407
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
26
<PAGE> 28
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY GROWTH AND INCOME FUND
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
OIL & GAS - DRILLING & EQUIPMENT - 1.3%
Halliburton Company............ 15,000 $ 615,000
Schlumberger, Ltd.............. 4,000 306,000
--------------
921,000
OIL & GAS - EXPLORATION & PRODUCTION - 0.6%
Unocal Corporation............. 15,000 446,250
PAPER & FOREST PRODUCTS - 1.1%
International Paper Company.... 19,000 812,250
PUBLISHING - NEWSPAPER - 0.8%
Gannett Company, Inc........... 8,000 563,000
RETAIL - APPAREL - 0.3%
TJX Companies, Inc............. 10,300 228,531
RETAIL - BUILDING SUPPLIES - 1.3%
Home Depot..................... 6,000 387,000
Lowe's Companies, Inc.......... 10,000 583,750
--------------
970,750
RETAIL - DRUG STORES - 0.3%
Walgreen Company............... 8,400 216,300
RETAIL - FOOD CHAINS - 0.4%
Safeway, Inc.*................. 6,700 303,175
RETAIL - GENERAL MERCHANDISE - 2.1%
Target Stores.................. 5,000 373,750
Wal-Mart Stores, Inc........... 21,000 1,165,500
--------------
1,539,250
RESTAURANTS - 1.0%
McDonald's Corporation......... 20,000 751,250
SERVICES - DATA PROCESSING - 0.2%
Automatic Data Processing,
Inc.......................... 3,600 173,700
TELECOMMUNICATIONS - CELLULAR - 0.4%
Nextel Communications, Inc.*... 2,100 311,325
TELECOMMUNICATION - LONG DISTANCE - 3.6%
AT&T Corporation............... 25,000 1,406,250
MCI WorldCom, Inc.............. 26,500 1,200,781
--------------
2,607,031
TELEPHONE - 5.5%
Bell Atlantic Corporation...... 23,700 1,448,662
BellSouth Corporation.......... 23,200 1,090,400
SBC Communications............. 34,600 1,453,200
--------------
3,992,262
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
UNIT INVESTMENT TRUST - 3.6%
NASDAQ - 100 Shares*........... 24,000 $ 2,631,000
--------------
Total common stocks - 88.4%............... 64,287,341
==============
<CAPTION>
COMMERCIAL PAPER
----------------
<S> <C> <C>
BROKERAGE - 2.1%
Merrill Lynch & Company, Inc.,
6.10%, 4/12/00............... $1,500,000 1,497,204
COMBINATION GAS & ELECTRIC - 0.6%
Pacific Gas & Electric Company,
6.005%, 4/4/00............... $400,000 399,800
ELECTRIC UTILITIES - 3.8%
Allegheny Energy, Inc., 6.08%,
4/7/00....................... $2,800,000 2,797,163
--------------
Total commercial paper - 6.5%............. 4,694,167
--------------
Total investments - 95.5%................. 69,442,139
Cash and other assets, less liabilities -
4.5%.................................... 3,230,983
--------------
Total net assets - 100.0%................. $ 72,673,122
==============
<CAPTION>
SECURITY EQUITY FUND - EQUITY SERIES
COMMON STOCKS
-------------
<S> <C> <C>
<S> <C> <C>
AEROSPACE/DEFENSE - 0.2%
Boeing Company................. 50,000 $ 1,896,875
AIRLINES - 0.4%
Southwest Airlines Company..... 200,000 4,162,500
ALUMINUM - 0.3%
Alcoa, Inc..................... 55,000 3,863,750
AUTOMOBILES - 0.6%
Ford Motor Company............. 85,000 3,904,687
General Motors Corporation..... 40,000 3,312,500
--------------
7,217,187
BANKS - MAJOR REGIONAL - 2.8%
Bank of New York Company,
Inc.......................... 300,000 12,468,750
Northern Trust Corporation..... 125,000 8,445,312
SunTrust Banks, Inc............ 30,000 1,732,500
Wells Fargo & Company.......... 205,000 8,392,187
--------------
31,038,749
BANKS - MONEY CENTER - 1.7%
Chase Manhattan Corporation.... 155,000 13,514,062
Bank of America Corporation.... 115,000 6,030,312
--------------
19,544,374
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
27
<PAGE> 29
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - EQUITY SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BEVERAGES - ALCOHOLIC - 0.5%
Anheuser-Busch Companies,
Inc.......................... 100,000 $ 6,225,000
BEVERAGES - SOFT DRINK - 1.1%
Coca-Cola Company.............. 175,000 8,214,063
PepsiCo, Inc................... 130,000 4,493,125
--------------
12,707,188
BIOTECHNOLOGY - 0.4%
Amgen, Inc.*................... 70,000 4,296,250
BROADCAST MEDIA - 1.2%
AMFM, Inc.*.................... 140,000 8,697,500
Univision Communications,
Inc.*........................ 40,000 4,520,000
--------------
13,217,500
BUILDING MATERIALS - 0.4%
Masco Corporation.............. 200,000 4,100,000
CHEMICALS - BASIC - 0.9%
Dow Chemical Company........... 25,000 2,850,000
E.I. du Pont de Nemours and
Company...................... 90,000 4,758,750
Rohm & Haas Company............ 60,000 2,677,500
--------------
10,286,250
CHEMICALS - SPECIALTY - 0.5%
Ecolab, Inc.................... 150,000 5,503,125
COMMUNICATION EQUIPMENT - 5.9%
ADC Telecommunications,
Inc.*........................ 110,000 5,926,250
CIENA Corporation*............. 26,700 3,367,538
Lucent Technologies, Inc....... 265,000 16,098,750
Motorola, Inc.................. 75,000 10,678,125
Nokia Oyj...................... 45,000 9,776,250
Nortel Networks Corporation.... 125,000 15,750,000
Tellabs, Inc.*................. 70,000 4,408,906
--------------
66,005,819
COMPUTER HARDWARE - 5.7%
Apple Computer, Inc.*.......... 30,000 4,074,375
Dell Computer Corporation*..... 200,000 10,787,500
Hewlett-Packard Company........ 75,000 9,942,188
International Business Machines
Corporation.................. 160,000 18,880,000
Sun Microsystems, Inc.*........ 215,000 20,146,172
--------------
63,830,235
COMPUTERS - NETWORKING - 4.5%
Cisco Systems, Inc.*........... 600,000 46,387,500
Network Appliance, Inc.*....... 40,000 3,310,000
--------------
49,697,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
COMPUTERS - PERIPHERALS - 1.5%
Brocade Communications Systems,
Inc.*........................ 20,000 $ 3,586,250
EMC Corporation*............... 85,000 10,625,000
Lexmark International Group,
Inc.*........................ 20,000 2,115,000
--------------
16,326,250
COMPUTER SOFTWARE/SERVICES - 8.6%
Amdocs Limited*................ 60,000 4,421,250
Computer Associates
International, Inc........... 60,000 3,551,250
Computer Sciences
Corporation*................. 120,000 9,495,000
Digex, Inc.*................... 35,000 3,882,812
Microsoft Corporation*......... 460,000 48,875,000
Oracle Corporation*............ 200,000 15,612,500
PSINet, Inc.*.................. 100,000 3,401,563
Yahoo!, Inc.*.................. 40,000 6,855,000
--------------
96,094,375
DISTRIBUTION - FOOD & HEALTH - 0.6%
Cardinal Health, Inc........... 145,000 6,651,875
ELECTRICAL EQUIPMENT - 4.5%
General Electric Company....... 300,000 46,556,250
Sanmina Corporation*........... 60,000 4,053,750
--------------
50,610,000
ELECTRONICS - SEMICONDUCTORS - 4.7%
Intel Corporation.............. 300,000 39,581,250
National Semiconductor
Corporation*................. 60,000 3,637,500
Texas Instruments, Inc.*....... 60,000 9,600,000
--------------
52,818,750
ENTERTAINMENT - 2.1%
Seagram Company, Ltd........... 50,000 2,975,000
Time Warner, Inc............... 140,000 14,000,000
Viacom, Inc.*.................. 120,000 6,330,000
--------------
23,305,000
EQUIPMENT - SEMICONDUCTORS - 1.1%
Applied Materials, Inc.*....... 70,000 6,597,500
ASM Lithography Holding
N.V.*........................ 15,000 1,676,250
Teradyne, Inc.*................ 45,000 3,701,250
--------------
11,975,000
FINANCIAL - DIVERSE - 3.7%
American Express Company....... 40,000 5,957,500
Citigroup, Inc................. 270,000 16,014,375
Fannie Mae..................... 150,000 8,465,625
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
28
<PAGE> 30
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - EQUITY SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
FINANCIAL - DIVERSE (CONTINUED)
Freddie Mac.................... 140,000 $ 6,186,250
Morgan Stanley, Dean Witter &
Company...................... 50,000 4,078,125
--------------
40,701,875
FOODS - 1.0%
Bestfoods...................... 240,000 11,235,000
HEALTH CARE - DIVERSE - 2.3%
American Home Products
Corporation.................. 150,000 8,043,750
Bristol-Myers Squibb Company... 175,000 10,106,250
Johnson & Johnson.............. 100,000 7,006,250
--------------
25,156,250
HEALTH CARE - PHARMACEUTICALS - 2.5%
Elan Corporation plc - ADR*.... 180,000 8,550,000
Merck & Company, Inc........... 130,000 8,076,250
Pharmacia & Upjohn, Inc........ 60,000 3,555,000
Schering-Plough Corporation.... 200,000 7,350,000
--------------
27,531,250
HOUSEHOLD PRODUCTS - 2.0%
Colgate-Palmolive Company...... 200,000 11,275,000
Kimberly-Clark Corporation..... 40,000 2,240,000
Procter & Gamble Company....... 150,000 8,437,500
--------------
21,952,500
INSURANCE - LIFE/HEALTH - 0.4%
American General Corporation... 85,000 4,770,625
INSURANCE - MULTILINE - 2.1%
American International Group,
Inc.......................... 160,000 17,520,000
Hartford Financial Services
Group, Inc................... 120,000 6,330,000
--------------
23,850,000
LEISURE TIME PRODUCTS - 0.3%
Harley-Davidson, Inc........... 45,000 3,571,875
LODGING - HOTELS - 0.3%
Carnival Corporation........... 125,000 3,101,563
MACHINERY - DIVERSE - 0.2%
Ingersoll-Rand Company......... 40,000 1,770,000
MANUFACTURING - DIVERSIFIED - 2.4%
Honeywell International,
Inc.......................... 100,000 5,268,750
Illinois Tool Works, Inc....... 60,000 3,315,000
Textron, Inc................... 48,600 2,958,525
Tyco International, Ltd........ 300,000 14,962,500
--------------
26,504,775
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
MEDICAL PRODUCTS & SUPPLIES - 2.1%
Baxter International, Inc...... 120,000 $ 7,522,500
Becton, Dickinson & Company.... 200,000 5,262,500
Medtronic, Inc................. 200,000 10,287,500
--------------
23,072,500
NATURAL GAS - 2.7%
Coastal Corporation............ 260,000 11,960,000
Enron Corporation.............. 100,000 7,487,500
Williams Companies, Inc........ 230,000 10,105,625
--------------
29,553,125
OIL - INTERNATIONAL - 3.7%
Chevron Corporation............ 110,000 10,168,125
Exxon Mobil Corporation........ 250,000 19,453,125
Royal Dutch Petroleum
Company...................... 200,000 11,512,500
--------------
41,133,750
PERSONAL CARE - 0.3%
Gillette Company............... 100,000 3,768,750
PUBLISHING - 0.3%
McGraw-Hill Companies, Inc..... 85,000 3,867,500
PUBLISHING - NEWSPAPER - 1.5%
Gannett Company, Inc........... 100,000 7,037,500
News Corporation Limited ADR... 80,000 4,500,000
Tribune Company................ 155,000 5,667,188
--------------
17,204,688
RESTAURANTS - 0.3%
McDonald's Corporation......... 85,000 3,192,812
RETAIL - APPAREL - 0.6%
TJX Companies, Inc............. 300,000 6,656,250
RETAIL - BUILDING SUPPLIES - 1.9%
Home Depot, Inc................ 180,000 11,610,000
Lowe's Companies, Inc.......... 160,000 9,340,000
--------------
20,950,000
RETAIL - DEPARTMENT STORES - 0.3%
Kohl's Corporation*............ 30,000 3,075,000
RETAIL - DRUG STORES - 1.1%
Walgreen Company............... 470,000 12,102,500
RETAIL - FOOD CHAINS - 0.8%
Safeway, Inc.*................. 200,000 9,050,000
RETAIL - GENERAL MERCHANDISE - 3.3%
Costco Wholesale
Corporation*................. 50,000 2,628,125
Target Corporation............. 160,000 11,960,000
Wal-Mart Stores, Inc........... 390,000 21,645,000
--------------
36,233,125
SERVICES - ADVERTISING/MARKETING - 0.8%
Omnicom Group, Inc............. 90,000 8,409,375
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
29
<PAGE> 31
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - EQUITY SERIES
(CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
SERVICES - COMMERCIAL & CONSUMER - 0.6%
Exodus Communications, Inc.*... 45,000 $ 6,322,500
SERVICES - DATA PROCESSING - 0.5%
First Data Corporation......... 120,000 5,310,000
TELECOMMUNICATION - CELLULAR - 1.2%
Nextel Communications, Inc.*... 40,000 5,930,000
Sprint Corporation (PCS
Group)*...................... 120,000 7,837,500
--------------
13,767,500
TELECOMMUNICATION - LONG DISTANCE - 2.9%
AT&T Corporation............... 175,000 9,843,750
MCI WorldCom, Inc.*............ 225,000 10,195,313
Qwest Communications
International*............... 60,000 2,910,000
Sprint Corporation (FON
Group)....................... 140,000 8,820,000
--------------
31,769,063
TELEPHONE - 3.4%
BellSouth Corporation.......... 150,000 7,050,000
CenturyTel, Inc................ 110,000 4,083,750
GTE Corporation................ 170,000 12,070,000
SBC Communications, Inc........ 250,000 10,500,000
U S West, Inc.................. 50,000 3,631,250
--------------
37,335,000
UNIT INVESTMENT TRUST - 3.5%
NASDAQ - 100 Shares*........... 360,000 39,465,000
--------------
Total common stocks - 99.2%............... 1,103,757,703
<CAPTION>
COMMERCIAL PAPER
----------------
BROKERAGE - 0.1%
Merrill Lynch & Company, Inc.
6.12%, 4-3-00................ $1,000,000 999,660
COMBINATION GAS & ELECTRIC - 0.4%
Pacific Gas & Electric Company
6.055%, 4-4-00............... $3,500,000 3,498,264
5.95%, 4-4-00................ $1,600,000 1,599,193
--------------
5,097,457
</TABLE>
<TABLE>
<S> <C> <C>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMERCIAL PAPER (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
Florida Power & Light Company
6.045%, 4-3-00............... $ 600,000 $ 599,799
--------------
Total commercial paper - 0.6%............. 6,696,916
--------------
Total investments - 99.8%................. 1,110,454,619
Cash and other assets, less liabilities -
0.2%.................................... 2,015,487
--------------
Total net assets - 100.0%................. $1,112,470,106
==============
<CAPTION>
SECURITY EQUITY FUND - GLOBAL SERIES
COMMON STOCKS
-------------
<S> <C> <C>
<S> <C> <C>
ARGENTINA - 0.2%
IRSA Inversiones y
Representaciones S.A......... 47,990 $ 149,309
AUSTRALIA - 1.0%
Australia & New Zealand Banking
Group, Ltd................... 70,100 442,527
Telstra Corporation, Ltd....... 99,200 457,629
--------------
900,156
BELGIUM - 1.1%
Lernout & Hauspie Speech
Products N.V.*............... 9,000 994,500
BRAZIL - 2.6%
Tele Norte Leste Participacoes
S.A.*........................ 48,000,000 1,276,332
Telesp Celular Participacoes
S.A. ADR*.................... 21,100 1,196,106
--------------
2,472,438
CANADA - 0.9%
Bombardier, Inc................ 33,400 838,566
CROATIA - 0.5%
Pliva d.d GDR.................. 29,100 431,117
FINLAND - 0.9%
Nokia Oyj ADR.................. 4,000 869,000
FRANCE - 6.3%
Alcatel........................ 4,200 921,552
AXA............................ 3,040 430,819
Canal Plus..................... 3,100 682,270
Cap Gemini S.A................. 4,100 1,110,291
Genset ADR*.................... 14,400 467,775
Sidel S.A...................... 7,600 494,526
Societe BIC S.A................ 21,530 875,587
Societe Television Francaise
1............................ 1,200 884,176
--------------
5,866,996
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
30
<PAGE> 32
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - GLOBAL SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
GERMANY - 7.3%
DePfa Deutsche Pfandbriefbank
AG........................... 3,700 $ 354,053
Fresenius AG................... 8,050 1,841,028
Porsche AG*.................... 755 2,095,132
ProSieben Media AG............. 10,925 1,245,087
Volkswagen AG.................. 6,080 266,753
Wella AG....................... 41,602 1,021,100
--------------
6,823,153
HONG KONG - 0.4%
Television Broadcasts, Ltd..... 48,000 426,893
INDIA - 1.6%
ICICI, Ltd. ADR*............... 64,200 1,460,550
IRELAND - 1.4%
Elan Corporation plc ADR*...... 27,200 1,292,000
ITALY - 1.5%
Telecom Italia Mobile SpA...... 100,000 1,226,746
Unicredito Italiano SpA........ 46,300 184,307
--------------
1,411,053
JAPAN - 7.5%
Credit Saison Company, Ltd..... 26,600 440,891
DDI Corporation................ 20 163,604
Eisai Company, Ltd............. 31,000 817,579
Hoya Corporation............... 3,000 283,723
Kyocera Corporation............ 1,300 217,501
Nintendo Company, Ltd.......... 1,200 211,183
NTT Docomo, Inc.*.............. 32 1,313,509
Sharp Corporation.............. 48,000 1,027,251
Sony Corporation............... 2,000 282,748
Taisho Pharmaceutical Company,
Ltd.*........................ 7,240 249,886
Toshiba Corporation*........... 191,000 1,947,896
--------------
6,955,771
KOREA, DEMOCRATIC PEOPLES REPUBLIC OF - 1.3%
Samsung Electronics............ 3,932 1,191,785
MEXICO - 1.4%
Grupo Televisa S.A. GDR*....... 19,820 1,347,760
NETHERLANDS - 4.7%
Getronics N.V.*................ 24,400 1,865,534
Koninklijke Philips Electronics
N.V.......................... 5,200 873,764
STMicroelectronics N.V......... 7,450 1,394,547
World Online International
N.V.*........................ 13,000 290,467
--------------
4,424,312
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
PORTUGAL - 0.7%
Portugal Telecom S.A........... 25,500 $ 326,973
Telecel-Comnicacoes Pessoais
S.A.......................... 16,900 329,901
--------------
656,874
SINGAPORE - 0.5%
Dairy Farm International
Holdings, Ltd................ 419,900 268,736
Singapore Press Holdings,
Ltd.......................... 12,900 205,887
--------------
474,623
SWEDEN - 2.4%
Autoliv, Inc................... 11,500 318,113
Telefonaktiebolaget LM Ericsson
AB ADR....................... 20,040 1,880,002
--------------
2,198,115
SWITZERLAND - 0.4%
Ares-Serono Group.............. 100 376,496
UNITED KINGDOM - 12.0%
3i Group plc................... 22,000 462,222
Allied Zurich plc.............. 52,900 578,503
Bass plc....................... 25,300 319,054
BP Amoco plc ADR............... 3,900 206,944
Cadbury Schweppes plc.......... 146,460 973,142
Glaxo Wellcome plc ADR......... 5,600 320,950
Hanson plc..................... 55,500 397,098
Hilton Group, plc.............. 126,600 589,233
New Dixons Group plc........... 36,314 167,133
Peninsular and Oriental Steam
Navigation Company........... 55,700 582,021
Reckitt Benckiser plc.......... 129,000 1,221,386
Reed International plc......... 101,700 744,285
Rentokil Initial plc........... 411,300 1,072,800
Royal Bank of Scotland Group
plc.......................... 61,500 907,036
Telewest Communications plc*... 44,381 341,615
Vodafone AirTouch plc.......... 83,900 467,791
WPP Group plc.................. 108,850 1,884,085
--------------
11,235,298
UNITED STATES - 33.2%
Affymetrix, Inc.*.............. 3,000 445,313
Alza Corporation*.............. 21,400 803,838
American Express Company....... 4,100 610,644
American Home Products
Corporation.................. 18,000 965,250
American International Group,
Inc.......................... 2,000 219,000
Amgen, Inc.*................... 12,700 779,463
Associates First Capital
Corporation.................. 25,400 544,513
C.R. Bard, Inc................. 17,500 677,031
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
31
<PAGE> 33
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - GLOBAL SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Cadence Design Systems,
Inc.*........................ 126,540 $ 2,625,705
Circuit City Stores-Circuit
City Group................... 11,500 700,062
Cisco Systems, Inc.*........... 14,000 1,082,375
Citigroup, Inc................. 12,700 753,269
Fannie Mae..................... 10,700 603,881
General Motors Corporation..... 9,300 770,156
Genzyme Corporation*........... 6,100 305,762
Gilead Sciences, Inc.*......... 6,700 424,612
Hasbro, Inc.................... 17,200 283,800
Healtheon/WebMD Corporation*... 4,500 103,500
Human Genome Sciences, Inc.*... 3,100 257,494
International Business Machines
Corporation.................. 3,900 460,200
International Flavors &
Fragrances, Inc.............. 40,100 1,406,006
International Game
Technology*.................. 20,500 444,594
Lehman Brothers Holdings,
Inc.......................... 9,500 921,500
Manpower, Inc.................. 25,770 914,835
MBNA Corporation............... 44,100 1,124,550
MCI WorldCom, Inc.*............ 7,200 326,250
Millennium Pharmaceuticals,
Inc.*........................ 3,470 450,666
National Semiconductor
Corporation*................. 53,600 3,249,500
Oracle Corporation*............ 18,180 1,419,176
Pfizer, Inc.................... 13,100 478,969
QUALCOMM, Inc.*................ 12,620 1,884,324
Quintiles Transnational
Corporation*................. 21,200 361,725
Scientific-Atlanta, Inc........ 27,300 1,731,844
Sun Microsystems, Inc.*........ 18,700 1,752,248
Sybase, Inc.*.................. 30,700 623,594
Walt Disney Company............ 10,800 446,850
--------------
30,952,499
--------------
Total common stocks - 89.8%............... 83,749,264
Cash and other assets, less liabilities -
10.2%................................... 9,506,070
--------------
Total net assets - 100%................... $ 93,255,334
==============
<CAPTION>
INVESTMENT CONCENTRATION
------------------------
At March 31, 2000, Global Series' investment concentration,
by industry, was as follows:
Advertising................................. 2.0%
Auto Parts & Supplies....................... 0.4%
Automobiles................................. 3.4%
Banks & Credit.............................. 2.0%
Beverages................................... 0.4%
</TABLE>
<TABLE>
<S> <C> <C>
<CAPTION>
INVESTMENT CONCENTRATION NUMBER MARKET
(CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
Broadcast Media............................. 4.9%
Building & Construction..................... 0.4%
Communications.............................. 2.0%
Computer Software........................... 2.8%
Computer Systems............................ 6.6%
Cosmetics................................... 1.1%
Drugs....................................... 6.7%
Electrical Equipment........................ 2.3%
Electronics................................. 6.9%
Entertainment............................... 1.3%
Financial Services.......................... 7.4%
Food Wholesalers............................ 1.1%
Health Care................................. 5.1%
Hotel/Motel................................. 0.6%
Household Products.......................... 2.8%
Insurance................................... 1.3%
Machinery................................... 0.5%
Manufacturing............................... 0.9%
Medical..................................... 0.9%
Office Equipment............................ 0.9%
Oil......................................... 0.2%
Publishing.................................. 0.8%
Real Estate Development..................... 0.2%
Retail...................................... 1.0%
Semiconductors.............................. 5.3%
Services.................................... 2.8%
Telecommunications.......................... 14.0%
Toys & Sporting Goods....................... 0.2%
Transportation.............................. 0.6%
Cash, other assets, less liabilities........ 10.2%
--------------
Total net assets............................ 100.0%
==============
<CAPTION>
SECURITY EQUITY FUND - TOTAL RETURN SERIES
<S> <C> <C>
<S> <C> <C>
COMMON STOCKS
--------------------------------------------
AEROSPACE/DEFENSE - 0.9%
General Dynamics Corporation... 1,450 $ 72,138
BANKS - MAJOR REGIONAL - 1.9%
Bank of New York Company,
Inc.......................... 3,700 153,781
BANKS - MONEY CENTER - 3.0%
Bank of America Corporation.... 1,400 73,413
Chase Manhattan Corporation.... 1,900 165,656
--------------
239,069
BEVERAGES - ALCOHOLIC - 0.5%
Anheuser-Busch Companies,
Inc.......................... 600 37,350
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
32
<PAGE> 34
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - TOTAL RETURN SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BEVERAGES - SOFT DRINK - 0.6%
PepsiCo, Inc................... 1,300 $ 44,931
BROADCAST MEDIA - 2.5%
Clear Channel Communications,
Inc.*........................ 1,825 126,039
Univision Communications,
Inc.*........................ 600 67,800
--------------
193,839
CHEMICALS - BASIC - 0.8%
Rohm & Haas Company............ 1,500 66,938
CHEMICALS - SPECIALTY - 0.5%
Ecolab, Inc.................... 1,050 38,522
COMMUNICATIONS EQUIPMENT - 4.2%
Lucent Technologies, Inc....... 1,750 106,313
Nortel Networks Corporation.... 1,000 126,000
Tellabs, Inc.*................. 1,600 100,775
--------------
333,088
COMPUTER HARDWARE - 3.3%
Dell Computer Corporation*..... 2,250 121,359
International Business Machines
Corporation.................. 1,200 141,600
--------------
262,959
COMPUTER SOFTWARE/SERVICES - 9.9%
Amdocs, Ltd.*.................. 800 58,950
America Online, Inc.*.......... 1,350 90,788
Computer Sciences
Corporation*................. 750 59,344
Digex, Inc.*................... 250 27,734
Microsoft Corporation*......... 3,900 414,375
PSINet, Inc.*.................. 900 30,614
Yahoo!, Inc.*.................. 600 102,825
--------------
784,630
COMPUTERS - NETWORKING - 4.9%
Cisco Systems, Inc.*........... 4,600 355,638
Network Appliance, Inc.*....... 400 33,100
--------------
388,738
COMPUTERS - PERIPHERALS - 2.6%
EMC Corporation*............... 950 118,750
Lexmark International Group,
Inc.*........................ 850 89,888
--------------
208,638
CONSUMER FINANCE - 1.5%
Household International,
Inc.......................... 3,200 119,400
DISTRIBUTION - FOOD & HEALTH - 1.5%
Cardinal Health, Inc........... 2,650 121,569
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - 4.8%
General Electric Company....... 2,100 $ 325,894
Sanmina Corporation*........... 800 54,050
--------------
379,944
ELECTRONICS - SEMICONDUCTORS - 3.8%
Intel Corporation.............. 2,250 296,859
ENTERTAINMENT - 0.8%
Viacom, Inc.*.................. 1,200 63,300
EQUIPMENT - SEMICONDUCTORS - 1.6%
Applied Materials, Inc.*....... 1,300 122,525
FINANCIAL - DIVERSE - 2.9%
Citigroup, Inc................. 1,400 83,038
Fannie Mae..................... 1,800 101,588
Morgan Stanley Dean Witter &
Company...................... 500 40,781
--------------
225,407
FOODS - 0.5%
Bestfoods, Inc................. 850 39,791
HEALTH CARE - DIVERSE - 1.8%
Abbott Laboratories............ 2,150 75,653
Bristol-Myers Squibb Company... 1,200 69,300
--------------
144,953
HEALTH CARE - PHARMACEUTICALS - MAJOR - 1.7%
Merck & Company, Inc........... 1,700 105,613
Schering-Plough Corporation.... 800 29,400
--------------
135,013
HOSPITAL MANAGEMENT - 0.5%
Tenet Healthcare
Corporation*................. 1,800 41,400
HOUSEHOLD PRODUCTS - 2.1%
Colgate-Palmolive Company...... 2,350 132,481
Procter & Gamble Company....... 600 33,750
--------------
166,231
INSURANCE - LIFE/HEALTH - 1.4%
American General Corporation... 1,900 106,638
INSURANCE - MULTILINE - 2.0%
American International Group,
Inc.......................... 1,425 156,037
LEISURE TIME PRODUCTS - 0.6%
Harley-Davidson, Inc........... 600 47,625
MANUFACTURING - DIVERSIFIED - 2.9%
Illinois Tool Works, Inc....... 1,450 80,112
Tyco International, Ltd........ 2,900 144,637
--------------
224,749
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
33
<PAGE> 35
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - TOTAL RETURN SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
MEDICAL PRODUCTS & SUPPLIES - 3.7%
Baxter International, Inc...... 1,500 $ 94,031
Guidant Corporation*........... 1,650 97,041
Medtronic, Inc................. 2,000 102,875
--------------
293,947
NATURAL GAS - 1.4%
El Paso Energy Corporation..... 1,100 44,412
Williams Companies, Inc........ 1,500 65,906
--------------
110,318
OIL - INTERNATIONAL - 3.6%
Chevron Corporation............ 900 83,194
Exxon Mobil Corporation........ 1,550 120,609
Royal Dutch Petrolum Company NY
Shares....................... 1,350 77,709
--------------
281,512
OIL & GAS - DRILLING & EQUIPMENT - 0.8%
Schlumberger, Ltd.............. 850 65,025
PUBLISHING - 0.4%
McGraw-Hill Companies, Inc..... 700 31,850
PUBLISHING - NEWSPAPER - 2.0%
Gannett Company, Inc........... 1,400 98,525
Tribune Company................ 1,600 58,500
--------------
157,025
RETAIL - BUILDING SUPPLIES - 1.8%
Lowe's Companies, Inc.......... 2,400 140,100
RETAIL - DEPARTMENT STORES - 1.4%
Kohl's Corporation*............ 1,100 112,750
RETAIL - DRUG STORES - 0.9%
Walgreen Company............... 2,700 69,525
RETAIL - FOOD CHAINS - 1.4%
Kroger Company*................ 2,800 49,175
Safeway, Inc.*................. 1,300 58,825
--------------
108,000
RETAIL - GENERAL MERCHANDISE - 3.0%
Target Corporation............. 1,450 108,387
Wal-Mart Stores, Inc........... 2,250 124,875
--------------
233,262
SERVICES - ADVERTISING/MARKETING - 1.4%
Omnicom Group, Inc............. 1,150 107,453
SERVICES - DATA PROCESSING - 0.8%
Automatic Data Processing,
Inc.......................... 1,350 65,137
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
TELECOMMUNICATION - LONG DISTANCE - 3.0%
AT&T Corporation............... 950 $ 53,437
MCI WorldCom, Inc.*............ 1,750 79,297
Qwest Communications
International, Inc........... 700 33,950
Sprint Corporation (FON
Group)....................... 1,100 69,300
--------------
235,984
TELEPHONE - 4.0%
Bell Atlantic Corporation...... 1,200 73,350
BellSouth Corporation.......... 1,600 75,200
Centurytel, Inc................ 1,850 68,681
SBC Communications, Inc........ 2,250 94,500
--------------
311,731
UNIT INVESTMENT TRUST - 2.5%
NASDAQ - 100 Shares*........... 1,800 197,325
--------------
Total common stocks - 98.1%............... 7,737,006
Cash and other assets, less liabilities -
1.9%.................................... 146,431
--------------
Total net assets - 100%................... $ 7,883,437
==============
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS
SERIES
COMMON STOCKS
-------------
<S> <C> <C>
<S> <C> <C>
AIR FREIGHT - 0.2%
Fedex Corporation.............. 1,500 $ 58,500
AIRLINES - 0.7%
Southwest Airlines Company..... 9,600 199,800
ALUMINUM - 0.4%
Alcoa, Inc..................... 1,900 133,475
BANKS - MAJOR REGIONAL - 3.4%
Bank of New York Company,
Inc.......................... 6,400 266,000
Northern Trust Corporation..... 5,600 378,350
PNC Bank Corporation........... 2,600 117,162
Wells Fargo Company............ 6,500 266,094
--------------
1,027,606
BANKS - MONEY CENTER - 1.7%
Bank of America Corporation.... 4,800 251,700
Chase Manhattan Corporation.... 3,000 261,563
--------------
513,263
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
34
<PAGE> 36
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS
SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BEVERAGES - SOFT DRINK - 2.0%
Coca-Cola Company.............. 10,600 $ 497,538
PepsiCo, Inc................... 3,300 114,056
--------------
611,594
BROADCAST MEDIA - 1.1%
AMFM, Inc.*.................... 1,800 111,825
Comcast Corporation (CI.A)..... 5,000 216,875
--------------
328,700
CHEMICALS - BASIC - 0.6%
Praxair, Inc................... 4,000 166,500
COMMUNICATIONS - EQUIPMENT - 6.5%
ADC Telecommunications,
Inc.*........................ 5,500 296,313
Comverse Technology, Inc.*..... 2,250 425,250
Lucent Technologies, Inc....... 13,710 832,883
Scientific-Atlanta, Inc........ 6,200 393,312
--------------
1,947,758
COMPUTER SOFTWARE/SERVICES - 10.7%
Adobe Systems, Inc............. 3,400 378,463
Compuware Corporation*......... 6,900 145,331
Microsoft Corporation*......... 22,000 2,337,500
Yahoo!, Inc.................... 2,200 377,025
--------------
3,238,319
COMPUTER HARDWARE - 5.7%
Compaq Computer Corporation.... 5,300 141,113
Dell Computer Corporation*..... 10,400 560,950
Hewlett-Packard Company........ 2,800 371,175
International Business Machines
Corporation.................. 5,400 637,200
--------------
1,710,438
COMPUTERS - NETWORKING - 7.2%
Cisco Systems, Inc.*........... 27,900 2,157,019
COMPUTERS - PERIPHERALS - 1.6%
EMC Corporation*............... 3,900 487,500
CONSUMER FINANCE - 0.4%
Household International,
Inc.......................... 3,600 134,325
DISTRIBUTION - FOOD & HEALTH - 0.4%
Cardinal Health, Inc........... 2,675 122,716
ELECTRICAL EQUIPMENT - 1.8%
Molex, Inc..................... 6,500 381,875
Sanmina Corporation*........... 2,200 148,638
--------------
530,513
ELECTRONICS - SEMICONDUCTORS - 10.8%
Analog Devices, Inc.*.......... 6,400 515,600
Intel Corporation.............. 14,300 1,886,706
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - SEMICONDUCTORS (CONTINUED)
Texas Instruments, Inc......... 3,400 $ 544,000
Xilinx, Inc.*.................. 3,600 298,125
--------------
3,244,431
ENTERTAINMENT - 2.1%
Viacom, Inc., (Cl.B)*.......... 5,200 274,300
Walt Disney Company............ 8,700 359,962
--------------
634,262
EQUIPMENT - SEMICONDUCTORS - 1.0%
Applied Materials, Inc......... 3,200 301,600
FINANCIAL - DIVERSE - 1.9%
American Express Company....... 1,600 238,300
Fannie Mae..................... 3,500 197,531
Freddie Mac.................... 3,100 136,981
--------------
572,812
FOODS - 0.8%
Bestfoods...................... 2,500 117,031
General Mills, Inc............. 3,000 108,563
--------------
225,594
HEALTH CARE - DIVERSE - 1.7%
Allergan, Inc.................. 2,600 130,000
Johnson & Johnson.............. 5,600 392,350
--------------
522,350
HEALTH CARE PHARMACEUTICALS - GENERIC - 0.5%
Watson Pharmaceuticals,
Inc.*........................ 3,500 138,906
HEALTH CARE PHARMACEUTICALS - MAJOR - 2.8%
Merck & Company, Inc........... 9,800 608,825
Schering-Plough Corporation.... 6,500 238,875
--------------
847,700
HOUSEHOLD PRODUCTS - 2.0%
Clorox Company................. 2,800 91,000
Colgate-Palmolive Company...... 1,600 90,200
Kimberly-Clark Corporation..... 2,000 112,000
Procter & Gamble Company....... 5,300 298,125
--------------
591,325
INSURANCE - LIFE/HEALTH - 0.5%
American General Corporation... 2,500 140,313
INSURANCE - MULTILINE - 2.5%
American International Group,
Inc.......................... 6,887 754,126
INSURANCE - PROPERTY & CASUALTY - 0.7%
Chubb Corporation.............. 2,900 195,931
MACHINERY - DIVERSE - 0.4%
Deere & Company................ 3,100 117,800
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
35
<PAGE> 37
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SOCIAL AWARENESS
SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - DIVERSIFIED - 0.4%
Illinois Tool Works, Inc....... 2,300 $ 127,075
MANUFACTURING - SPECIALIZED - 0.5%
Avery Dennison Corporation..... 2,500 152,656
MEDICAL PRODUCTS & SUPPLIES - 1.7%
Boston Scientific
Corporation*................. 2,600 55,412
Guidant Corporation*........... 3,600 211,725
Medtronic, Inc................. 5,000 257,188
--------------
524,325
OFFICE EQUIPMENT & SUPPLIES - 0.3%
Pitney Bowes, Inc.............. 1,800 80,438
OIL & GAS - DRILLING & EQUIPMENT - 3.0%
BJ Services Company*........... 6,500 480,187
Noble Drilling Corporation*.... 10,200 422,663
--------------
902,850
PAPER & FOREST PRODUCTS - 0.5%
Westvaco Corporation........... 4,900 163,537
PERSONAL CARE - 0.4%
Gillette Company............... 3,500 131,906
PUBLISHING - 0.3%
McGraw-Hill Companies, Inc..... 1,800 81,900
PUBLISHING - NEWSPAPER - 0.4%
New York Times Company (Cl.A).. 3,100 133,106
RESTAURANTS - 0.5%
McDonald's Corporation......... 4,200 157,762
RETAIL - APPAREL - 1.0%
Talbots, Inc................... 3,000 176,625
TJX Companies, Inc............. 5,200 115,375
--------------
292,000
RETAIL - BUILDING SUPPLIES - 1.7%
Home Depot, Inc................ 2,400 154,800
Lowe's Companies, Inc.......... 6,300 367,763
--------------
522,563
RETAIL - DEPARTMENT STORES - 0.5%
Kohl's Corporation*............ 1,600 164,000
RETAIL - DISCOUNTERS - 0.7%
Family Dollar Stores, Inc...... 10,000 208,125
RETAIL - DRUG STORES - 0.5%
CVS Corporation................ 3,800 142,738
RETAIL - FOOD CHAINS - 0.3%
Kroger Company*................ 6,000 105,375
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
RETAIL - GENERAL MERCHANDISE - 3.7%
Costco Wholesale Corporation... 1,800 $ 94,612
Target Corporation*............ 3,500 261,625
Wal-Mart Stores, Inc........... 13,900 771,450
--------------
1,127,687
SERVICES - ADVERTISING/MARKETING - 0.8%
Omnicom Group, Inc............. 2,600 242,938
SERVICES - DATA PROCESSING - 1.1%
Paychex, Inc................... 6,200 324,725
TELECOMMUNICATIONS - CELLULAR - 1.1%
Sprint Corporation (PCS
Group)*...................... 4,900 320,031
TELECOMMUNICATIONS - LONG DISTANCE - 3.8%
AT&T Corporation............... 12,244 688,725
MCI WorldCom, Inc.*............ 7,200 326,250
Sprint Corporation............. 2,200 138,600
--------------
1,153,575
TELEPHONE - 3.7%
Bell Atlantic Corporation...... 5,900 360,637
BellSouth Corporation.......... 5,000 235,000
SBC Communications, Inc........ 12,248 514,416
--------------
1,110,053
--------------
Total common stocks - 99.0%............... 29,824,541
Cash and other assets, less liabilities -
1.0%.................................... 313,867
--------------
Total net assets - 100.0%................. $ 30,138,408
==============
<CAPTION>
SECURITY EQUITY FUND - VALUE SERIES
COMMON STOCKS
-------------
<S> <C> <C>
<S> <C> <C>
AEROSPACE/DEFENSE - 1.3%
Alliant Techsystems, Inc.*..... 8,600 $ 506,325
AIR FREIGHT - 0.6%
Hub Group, Inc.*............... 15,400 234,850
AUTO PARTS & EQUIPMENT - 0.3%
Motorcar Parts & Accessories,
Inc.*........................ 50,000 97,500
BANKS - MAJOR REGIONAL - 4.4%
Marshall & Ilsley
Corporation.................. 21,000 1,212,750
North Fork Bancorporation,
Inc.......................... 32,000 572,000
--------------
1,784,750
BANKS - MONEY CENTER - 1.6%
J.P. Morgan & Company, Inc..... 5,000 658,750
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
36
<PAGE> 38
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - VALUE SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BIOTECHNOLOGY - 1.1%
Ligand Pharmaceuticals, Inc.
(CI.B)*...................... 26,000 $ 461,500
BROADCAST MEDIA - 1.1%
Cinar Corporation (CI.B)*...... 86,000 451,500
CHEMICALS - DIVERSIFIED - 1.5%
Engelhard Corporation.......... 40,000 605,000
CHEMICALS - SPECIALTY - 0.7%
Material Sciences
Corporation*................. 21,000 283,500
COMMUNICATION EQUIPMENT - 0.2%
Transcrypt International,
Inc.*........................ 25,000 92,187
COMPUTER SOFTWARE/SERVICES - 6.2%
AVT Corporation*............... 63,000 744,188
Computer Sciences
Corporation*................. 8,800 696,300
JDA Software Group, Inc.*...... 35,000 511,875
Mediconsult.com, Inc.*......... 66,000 189,750
UNOVA, Inc.*................... 26,000 351,000
--------------
2,493,113
ELECTRICAL EQUIPMENT - 6.4%
Benchmark Electronics, Inc.*... 40,000 1,480,000
Maxwell Technologies, Inc.*.... 80,000 1,100,000
--------------
2,580,000
ELECTRONICS - DEFENSE - 0.8%
Raytheon Company............... 18,000 338,625
FOODS - 2.4%
Agribrands International,
Inc.*........................ 16,400 644,725
Hormel Foods Corporation....... 20,000 328,750
--------------
973,475
FOOTWEAR - 0.1%
Brown Shoe Company, Inc........ 2,200 26,400
FINANCIAL - DIVERSE - 1.4%
Pioneer Group, Inc.*........... 25,000 581,250
HEALTH CARE - LONG TERM CARE - 0.5%
Morrison Management
Specialists, Inc............. 7,000 194,250
HEALTH CARE - PHARMACEUTICALS - GENERIC -
2.9%
Mylan Laboratories, Inc........ 42,000 1,155,000
HEALTH CARE - SPECIALIZED SERVICES - 3.0%
CryoLife, Inc.*................ 66,000 1,188,000
HOSPITAL MANAGEMENT - 1.1%
Quorum Health Group, Inc.*..... 47,000 472,937
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
INSURANCE - LIFE/HEALTH - 4.3%
AFLAC, Inc..................... 12,000 $ 546,750
American General Corporation... 10,000 561,250
UnumProvident Corporation...... 37,000 629,000
--------------
1,737,000
INSURANCE - PROPERTY & CASUALTY - 2.5%
Horace Mann Educators
Corporation.................. 13,000 239,688
Progressive Corporation........ 10,000 760,625
--------------
1,000,313
LEISURE TIME PRODUCTS - 2.9%
Mattel, Inc.................... 67,000 699,313
Midway Games, Inc.*............ 34,000 463,250
--------------
1,162,563
MANUFACTURING - SPECIALIZED - 2.7%
Brady Corporation (Cl.A)....... 16,000 499,000
Federal Signal Corporation..... 33,000 596,062
--------------
1,095,062
MEDICAL PRODUCTS & SUPPLIES - 1.1%
Sunrise Medical, Inc.*......... 70,000 437,500
NATURAL GAS - 6.3%
El Paso Energy Corporation..... 16,000 646,000
Kinder Morgan, Inc............. 35,000 1,207,500
Questar Corporation............ 37,000 686,812
--------------
2,540,312
OIL - DOMESTIC - 4.0%
Forest Oil Corporation*........ 62,000 658,750
TransMontaigne, Inc.*.......... 142,000 967,375
--------------
1,626,125
OIL - INTERNATIONAL - 1.6%
Tesoro Petroleum
Corporation*................. 57,100 656,650
OIL & GAS - DRILLING & EQUIPMENT - 2.4%
ENSCO International, Inc....... 27,000 975,375
OIL & GAS - EXPLORATION & PRODUCTION - 14.0%
Anadarko Petroleum
Corporation.................. 17,000 657,687
Apache Corporation............. 12,000 597,000
Callon Petroleum Company*...... 42,000 509,250
Chieftain International,
Inc.*........................ 39,000 784,875
Evergreen Resources, Inc.*..... 15,000 362,813
Murphy Oil Corporation......... 20,000 1,152,500
Ocean Energy, Inc.*............ 110,000 1,581,250
--------------
5,645,375
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
37
<PAGE> 39
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - VALUE SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
PUBLISHING - NEWSPAPER - 1.6%
E.W. Scripps Company (Cl.A).... 13,000 $ 630,500
RAILROADS - 1.3%
RailAmerica, Inc.*............. 80,000 540,000
RESTAURANTS - 1.6%
Sonic Corporation*............. 24,000 654,000
RETAIL - DRUG STORES - 0.8%
CVS Corporation................ 9,000 338,062
SERVICES - ADVERTISING/MARKETING - 3.2%
Acxiom Corporation*............ 39,000 1,296,750
SERVICES - COMMERCIAL & CONSUMER - 4.6%
Angelica Corporation........... 76,000 755,250
ITT Educational Services,
Inc.*........................ 24,000 384,000
Tier Technologies, Inc.*....... 110,000 694,375
--------------
1,833,625
SERVICES - COMPUTER SYSTEMS - 2.6%
Comdisco, Inc.................. 12,000 529,500
SunGard Data Systems, Inc.*.... 14,000 528,500
--------------
1,058,000
TEXTILES - APPAREL - 4.0%
Jones Apparel Group, Inc.*..... 20,000 637,500
Kellwood Company............... 55,000 965,938
--------------
1,603,438
TRUCKING - 0.3%
Motor Cargo Industries,
Inc.*........................ 29,200 135,050
--------------
Total common stocks - 99.4%............... 40,144,612
Cash and other assets, less liabilities -
0.6%.................................... 240,602
--------------
Total net assets - 100.0%................. $ 40,385,214
==============
<CAPTION>
SECURITY EQUITY FUND - SMALL COMPANY SERIES
COMMON STOCKS
-------------
BANKS - MAJOR REGIONAL - 0.9%
Silicon Valley Bancshares*..... 6,500 $ 467,188
BIOTECHNOLOGY - 2.3%
Sequenom, Inc.*................ 1,700 66,937
Titan Pharmaceuticals, Inc.*... 36,000 1,120,500
--------------
1,187,437
</TABLE>
<TABLE>
<S> <C> <C>
<CAPTION>
SECURITY EQUITY FUND - SMALL COMPANY SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BROADCAST MEDIA - 2.6%
Pegasus Communications
Corporation*................. 7,500 $ 1,055,625
XM Satellite Radio Holdings,
Inc. (Cl.A)*................. 7,500 261,563
--------------
1,317,188
COMMUNICATION EQUIPMENT - 13.9%
Digital Lightwave, Inc.*....... 5,000 311,562
Digital Microwave
Corporation*................. 50,000 1,693,750
Ditech Communications
Corporation*................. 12,000 1,272,750
Ion Networks, Inc.*............ 10,900 366,513
P-Com, Inc.*................... 52,000 962,000
Polycom, Inc.*................. 10,000 791,875
Spectralink Corporation*....... 28,000 504,000
Spectrian Corporation*......... 16,500 371,250
Tekelec*....................... 14,000 519,750
Z-Tel Technologies, Inc.*...... 7,500 315,000
--------------
7,108,450
COMPUTER HARDWARE - 2.9%
Advanced Digital Information
Corporation*................. 20,000 685,000
Optimal Robotics
Corporation*................. 3,200 150,400
Performance Technologies,
Inc.*........................ 14,600 634,187
--------------
1,469,587
COMPUTER SOFTWARE/SERVICES - 12.9%
Advent Software, Inc.*......... 8,000 367,000
BindView Development
Corporation*................. 11,000 341,688
BroadVision, Inc.*............. 8,400 376,950
Cysive, Inc.*.................. 3,000 205,500
Documentum, Inc.*.............. 3,200 249,600
Exchange Applications, Inc.*... 12,600 666,816
Informatica Corporation*....... 8,000 614,500
Internet Pictures
Corporation*................. 8,000 271,500
Intranet Solutions, Inc.*...... 15,000 690,000
ITXC Corporation*.............. 13,400 630,637
Manugistics Group, Inc.*....... 12,000 603,000
Micromuse, Inc.*............... 4,000 555,250
Natural Microsystems
Corporation*................. 3,800 325,850
Net. Genesis Corporation*...... 4,000 179,000
Pivotal Corporation*........... 3,300 106,012
RSA Security, Inc.*............ 3,500 181,344
Sonic Foundry, Inc.*........... 2,700 263,250
--------------
6,627,897
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
38
<PAGE> 40
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SMALL COMPANY SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - 3.2%
Electro Scientific Industries,
Inc.*........................ 10,000 $ 580,000
KEMET Corporation*............. 6,400 404,800
Plexus Corporation*............ 9,700 646,262
--------------
1,631,062
ELECTRONICS - DEFENSE - 1.5%
Aeroflex, Inc.*................ 16,000 792,000
ELECTRONICS - INSTRUMENTATION - 9.3%
Alpha Industries, Inc.*........ 7,000 665,000
Interlink Electronics, Inc.*... 4,200 400,575
Kopin Corporation*............. 5,800 398,750
Macrovision Corporation*....... 13,000 1,119,625
SanDisk Corporation*........... 9,000 1,102,500
Sawtek, Inc.*.................. 16,000 841,000
Veeco Instruments, Inc.*....... 3,500 259,000
--------------
4,786,450
ELECTRONICS - SEMICONDUCTORS - 7.7%
Credence Systems
Corporation*................. 4,600 575,575
Integrated Device Technology,
Inc.*........................ 18,500 733,063
Integrated Silicon Solution,
Inc.*........................ 14,000 410,375
Micrel, Inc.*.................. 3,000 288,000
Oak Technology, Inc.*.......... 25,000 481,250
Photronics, Inc.*.............. 8,000 282,500
Silicon Storage Technology,
Inc.*........................ 6,000 443,250
Siliconix, Inc.*............... 4,500 427,781
Xicor, Inc.*................... 20,000 282,500
--------------
3,924,294
EQUIPMENT - SEMICONDUCTORS - 1.5%
Asyst Technologies, Inc.*...... 13,000 760,500
HEALTH CARE - PHARMACEUTICALS - MAJOR - 0.8%
Alkermes, Inc.*................ 4,500 416,250
INVESTMENT BANK/BROKERAGE - 0.6%
Dain Rauscher Corporation...... 4,500 296,719
IRON & STEEL - 0.4%
Lone Star Technologies,
Inc.*........................ 4,500 209,812
MEDICAL PRODUCTS & SUPPLIES - 2.6%
Cytyc Corporation*............. 7,600 366,700
Varian, Inc.*.................. 25,500 978,563
--------------
1,345,263
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
OIL & GAS - DRILLING & EQUIPMENT - 7.0%
BJ Services Company*........... 9,600 $ 709,200
Grey Wolf, Inc.*............... 95,100 374,456
Key Energy Group, Inc.*........ 77,500 900,937
Marine Drilling Companies,
Inc.*........................ 34,000 932,875
UTI Energy Corporation*........ 17,500 660,625
--------------
3,578,093
RETAIL - COMPUTERS & ELECTRONICS - 0.9%
Tweeter Home Entertainment
Group, Inc.*................. 10,900 482,325
SERVICES - COMMERCIAL & CONSUMER - 5.9%
Corporate Executive Board
Company*..................... 5,500 279,125
InterVU, Inc.*................. 5,500 495,000
Invitrogen Corporation*........ 4,300 249,669
Teletech Holdings, Inc.*....... 11,000 379,500
Tetra Tech, Inc.*.............. 24,000 570,000
WebTrends Corporation*......... 14,400 1,036,800
--------------
3,010,094
SERVICES - COMPUTER SYSTEMS - 0.6%
Intervoice, Inc.*.............. 10,000 288,750
TELECOMMUNICATION - CELLULAR - 5.3%
Advanced Radio Telecom
Corporation*................. 15,500 513,437
AirGate PCS, Inc.*............. 9,000 949,500
Metromedia International Group,
Inc.*........................ 11,100 62,438
Microcell Telecommunications,
Inc.*........................ 7,500 332,812
Pinnacle Holdings, Inc.*....... 7,500 414,375
Powerwave Technologies,
Inc.*........................ 3,500 437,500
--------------
2,710,062
TELECOMMUNICATION - LONG DISTANCE - 3.4%
Cypress Communications,
Inc.*........................ 12,500 306,250
ITC Deltacom, Inc.*............ 5,500 195,938
Primus Telecommunications
Group, Inc.*................. 24,000 1,240,500
--------------
1,742,688
--------------
Total common stocks - 86.2%............... 44,152,109
Cash and other assets, less liabilities -
13.8%................................... 7,039,161
--------------
Total net assets - 100.0%................. $ 51,191,270
==============
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
39
<PAGE> 41
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE - 0.6%
B.F. Goodrich Company.......... 138 $ 3,959
Boeing Company................. 1,569 59,524
Cordant Technologies, Inc...... 1,100 62,219
General Dynamics Corporation... 525 26,119
Lockheed Martin Corporation.... 751 15,348
Northrop Grumman Corporation... 78 4,129
--------------
171,298
AGRICULTURAL PRODUCTS - 0.0%
Archer-Daniels-Midland
Company...................... 1,145 11,879
AIR FREIGHT - 0.1%
Fedex Corporation*............. 687 26,793
AIRLINES - 0.2%
AMR Corporation*............... 366 11,666
Delta Air Lines, Inc........... 391 20,821
Southwest Airlines Company..... 956 19,897
US Airways Group, Inc.*........ 111 3,087
--------------
55,471
ALUMINUM - 0.3%
Alcan Aluminum, Ltd............ 657 22,256
Alcoa, Inc..................... 62 4,356
Reynolds Metals Company........ 790 52,831
--------------
79,443
AUTO PARTS & EQUIPMENT - 0.2%
Cooper Tire & Rubber Company... 143 1,796
Dana Corporation............... 456 12,854
Delphi Automotive Systems
Corporation.................. 1,456 23,296
Genuine Parts Company.......... 260 6,207
Snap-On Tools.................. 48 1,257
TRW, Inc....................... 173 10,121
--------------
55,531
AUTOMOBILES - 0.8%
Ford Motor Company............. 2,424 111,353
General Motors
Corporation(1)............... 1,294 107,159
--------------
218,512
BANKS - MAJOR REGIONAL - 2.4%
Amsouth Bancorporation......... 744 11,113
Bank of New York Company,
Inc.......................... 1,318 54,779
Bank One Corporation........... 1,887 64,866
BB&T Corporation............... 395 11,085
Fifth Third Bancorp............ 535 33,705
Firstar Corporation............ 1,817 41,677
Fleetboston Financial
Corporation*................. 1,129 41,208
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BANKS - MAJOR REGIONAL (CONTINUED)
Huntington Bancshares, Inc..... 404 $ 9,039
Keycorp........................ 848 16,112
Mellon Bank Corporation........ 873 25,754
National City Corporation...... 1,134 23,389
Northern Trust Corporation..... 373 25,201
PNC Bank Corporation........... 491 22,126
Regions Financial
Corporation.................. 373 8,509
SouthTrust Corporation......... 219 5,571
State Street Boston............ 269 26,059
Summit Bancorp................. 269 7,061
SunTrust Banks, Inc............ 555 32,051
Synovus Financial
Corporation.................. 534 10,079
U.S. Bancorp................... 1,340 29,313
Union Planters Corporation..... 417 12,849
Wachovia Corporation........... 339 22,904
Wells Fargo Company(1)......... 3,031 124,082
--------------
658,532
BANKS - MONEY CENTER - 1.5%
Bank of America
Corporation(1)............... 3,087 161,874
Chase Manhattan
Corporation(1)............... 1,513 131,915
First Union Corporation........ 1,532 57,067
J.P. Morgan & Company, Inc..... 383 50,460
--------------
401,316
BEVERAGES - ALCOHOLIC - 0.2%
Anheuser-Busch Companies,
Inc.......................... 827 51,481
Brown-Forman Corporation
(Cl.B)....................... 80 4,355
--------------
55,836
BEVERAGES - SOFT DRINK - 1.2%
Coca-Cola Company(1)........... 4,621 216,898
Coca-Cola Enterprises, Inc..... 1,051 22,662
PepsiCo, Inc................... 2,681 92,662
--------------
332,222
BIOTECHNOLOGY - 0.5%
Amgen, Inc.*................... 1,993 122,320
Biogren, Inc.*................. 320 22,360
--------------
144,680
BROADCAST MEDIA - 1.5%
CBS Corporation*............... 1,815 102,774
Clear Channel Communications,
Inc.*........................ 627 43,302
Comcast Corporation (Cl.A)*.... 1,850 80,244
MediaOne Group, Inc.*(1)....... 2,158 174,798
--------------
401,118
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
40
<PAGE> 42
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BUILDING MATERIALS - 0.1%
Armstrong World Industries,
Inc. ........................ 62 $ 1,108
Masco Corporation.............. 848 17,384
Owens Corning Corporation...... 102 1,976
--------------
20,468
CHEMICALS - BASIC - 0.8%
Air Products & Chemicals,
Inc. ........................ 340 9,669
E.I. du Pont de Nemours &
Company(1)................... 2,087 110,350
Eastman Chemical Company....... 106 4,823
Praxair, Inc. ................. 219 9,116
Rohm & Haas Company............ 355 15,842
Union Carbide Corporation...... 1,108 64,610
--------------
214,410
CHEMICALS - DIVERSIFIED - 0.3%
Engelhard Corporation.......... 242 3,660
FMC Corporation*............... 148 8,362
Monsanto Company*.............. 907 46,711
PPG Industries, Inc. .......... 285 14,909
--------------
73,642
CHEMICALS - SPECIALTY - 0.1%
Ecolab, Inc. .................. 136 4,990
Great Lakes Chemical Company... 34 1,156
Hercules, Inc. ................ 201 3,241
International Flavors &
Fragrances, Inc. ............ 120 4,207
W.R. Grace & Company*.......... 138 1,751
--------------
15,345
COMMUNICATION EQUIPMENT - 4.7%
ADC Telecommunications,
Inc.*........................ 666 35,881
Andrew Corporation*............ 516 11,803
Comverse Technology, Inc.*..... 157 29,673
IPI Communications, Inc.*...... 98 20,188
Lucent Technologies, Inc.(1)... 5,342 324,526
Motorola, Inc. ................ 1,327 188,932
Nortel Networks Corporation.... 2,673 336,798
Ortel Corporation*............. 198 37,162
QUALCOMM, Inc.*(1)............. 1,420 212,024
Scientific-Atlanta, Inc. ...... 456 28,928
Tellabs, Inc.*................. 841 52,970
--------------
1,278,885
COMPUTER HARDWARE - 5.1%
Apple Computer, Inc.*.......... 360 48,892
Compaq Computer Corporation.... 3,153 83,949
Dell Computer
Corporation*(1).............. 4,913 264,995
Gateway, Inc.*................. 663 35,139
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE (CONTINUED)
Hewlett-Packard Company(1)..... 1,873 $ 248,290
International Business Machines
Corporation(1)............... 3,465 408,870
Silicon Graphics, Inc.*........ 839 8,862
Sun Microsystems, Inc.*(1)..... 3,001 281,203
--------------
1,380,200
COMPUTER SOFTWARE/SERVICES - 8.2%
Adobe Systems, Inc. ........... 196 21,817
America Online, Inc.*(1)....... 4,343 292,067
Auto Desk Online, Inc. ........ 69 3,140
BMC Software, Inc.*............ 565 27,897
Citrix Systems, Inc.*.......... 387 25,639
Computer Associates
International, Inc. ......... 981 58,063
Computer Sciences
Corporation*................. 368 29,118
Compuware Corporation*......... 885 18,640
Microsoft Corporation*(1)...... 9,917 1,053,681
Novell, Inc.*.................. 760 21,755
Oracle Corporation*(1)......... 5,522 431,061
Parametric Technology
Company*..................... 668 14,070
Peoplesoft, Inc.*.............. 693 13,860
Unisys Corporation*............ 723 18,436
Veritas Corporation*........... 120 15,720
Yahoo!, Inc.*.................. 1,043 178,744
--------------
2,223,708
COMPUTERS - NETWORKING - 4.1%
3COM Corporation*.............. 709 39,438
Cabletron Systems, Inc.*....... 465 13,630
Cisco Systems, Inc.*(1)........ 13,002 1,005,217
Network Appliance, Inc.*....... 612 50,643
--------------
1,108,928
COMPUTERS - PERIPHERALS - 1.1%
EMC Corporation*(1)............ 1,962 245,250
Lexmark International Group,
Inc.*........................ 281 29,716
Seagate Technology, Inc.*...... 486 29,281
--------------
304,247
CONSTRUCTION - CEMENT - 0.0%
Vulcan Materials............... 125 5,727
CONSUMER - JEWEL/GIFT - 0.3%
American Greetings
Corporation.................. 95 1,734
Jostens, Inc................... 2,980 72,637
--------------
74,371
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
41
<PAGE> 43
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
CONSUMER FINANCE - 0.3%
Capital One Financial
Corporation.................. 300 $ 14,381
Countrywide Credit Industries,
Inc. ........................ 147 4,006
Household International,
Inc. ........................ 811 30,261
MBNA Corporation............... 1,484 37,842
Providian Financial
Corporation.................. 95 8,229
--------------
94,719
CONTAINER - METAL/GLASS - 0.0%
Crown Cork & Seal Company,
Inc. ........................ 452 7,232
Owens-Illinois, Inc. .......... 290 4,894
--------------
12,126
CONTAINERS & PACKAGING - 0.0%
Pactiv Corporation (Tenneco
Packaging, Inc.)*............ 320 2,800
Temple-Inland, Inc. ........... 228 11,357
--------------
14,157
DISTRIBUTION - FOOD & HEALTH - 0.8%
Cardinal Health, Inc. ......... 444 20,369
McKesson HBOC, Inc. ........... 433 9,093
SUPERVALU, Inc. ............... 673 12,745
SYSCO Corporation.............. 546 19,485
U.S. Foodservice, Inc.*........ 5,700 146,775
--------------
208,467
ELECTRIC COMPANIES - 1.5%
Ameren Corporation............. 170 5,259
American Electric Power
Company, Inc. ............... 285 8,497
Carolina Power & Light
Company...................... 240 7,785
Central & South West
Corporation.................. 359 6,125
Cinergy Corporation............ 228 4,902
CMS Energy Corporation......... 438 7,939
Consolidated Edison, Inc. ..... 569 16,501
Constellation Energy Group..... 391 12,463
Dominion Resources, Inc. ...... 384 14,760
DTE Energy Company............. 380 11,020
Duke Energy Corporation........ 640 33,600
Edison International........... 884 14,641
Entergy Corporation............ 730 14,737
FirstEnergy Corporation........ 733 15,118
Florida Progress Corporation... 392 17,983
FPL Group, Inc. ............... 422 19,438
GPU, Inc. ..................... 145 3,969
New Century Energies, Inc. .... 129 3,878
Niagra Mohawk Power Holdings,
Inc.*........................ 355 4,793
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
ELECTRIC COMPANIES (CONTINUED)
Northern States Power
Company...................... 290 $ 5,764
PECO Energy Company............ 551 20,318
PG&E Corporation............... 875 18,375
Pinnacle West Capital
Corporation.................. 72 2,029
PP&L Resources, Inc. .......... 433 9,066
Public Service Enterprise
Group, Inc. ................. 523 15,559
Reliant Energy, Inc. .......... 475 11,133
Southern Company............... 1,414 30,755
Texas Utilities Company........ 445 13,211
Unicom Corporation............. 497 18,141
United Water Resources,
Inc. ........................ 1,300 45,175
--------------
412,934
ELECTRICAL EQUIPMENT - 4.0%
Cooper Industries, Inc. ....... 74 2,590
Emerson Electric Company....... 774 40,925
General Electric Company(1).... 6,211 963,870
Johnson Controls, Inc. ........ 117 6,559
Molex, Inc. ................... 298 17,507
Rockwell International
Company...................... 304 12,711
Solectron Corporation*......... 1,258 50,399
--------------
1,094,561
ELECTRONICS - DEFENSE - 0.1%
Netoptix Corporation*.......... 194 33,319
Raytheon Company (Cl.B)........ 516 9,159
--------------
42,478
ELECTRONICS - DISTRIBUTION - 0.0%
W.W. Grainger, Inc. ........... 117 6,347
ELECTRONICS - INSTRUMENTATION - 0.2%
PE Corp-PE Biosystems Group.... 357 34,450
PerkinElmer, Inc. ............. 184 12,236
Sabre Group Holdings*.......... 264 9,770
--------------
56,456
ELECTRONICS - SEMICONDUCTORS - 5.2%
Adaptec, Inc.*................. 306 11,819
Advanced Micro Devices,
Inc.*........................ 387 22,083
Analog Devices, Inc.*.......... 778 62,677
Conexant Systems, Inc.*........ 348 24,708
Intel Corporation(1)........... 6,293 830,283
Linear Technology
Corporation.................. 115 6,325
LSI Logic Corporation*......... 638 46,335
Micron Technology, Inc.*....... 640 80,640
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
42
<PAGE> 44
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - SEMICONDUCTORS (CONTINUED)
National Semiconductor
Corporation*................. 454 $ 27,524
Texas Instruments, Inc.(1)..... 1,522 243,520
Xilinx, Inc.*.................. 668 55,319
--------------
1,411,233
ENGINEERING & CONSTRUCTION - 0.0%
Fluor Corporation.............. 57 1,767
ENTERTAINMENT - 1.8%
Seagram Company, Inc........... 880 52,360
Time Warner, Inc.(1)........... 2,402 240,200
Viacom, Inc. (Cl.B)*........... 974 51,379
Walt Disney Company............ 3,828 158,384
--------------
502,323
EQUIPMENT - SEMICONDUCTORS - 0.8%
Applied Materials, Inc.*....... 1,470 138,544
KLA-Tencor Corporation*........ 399 33,616
Teradyne, Inc.*................ 440 36,190
--------------
208,350
FINANCIAL - DIVERSE - 3.4%
American Express Company(1).... 889 132,406
Associates First Capital
Corporation (Cl.A)........... 1,020 21,866
Citigroup, Inc.(1)............. 6,538 387,785
Fannie Mae(1).................. 1,854 104,635
Freddie Mac.................... 928 41,006
Morgan Stanley Dean Witter &
Company(1)................... 2,239 182,619
SLM Holding Corporation........ 193 6,429
U.S. Trust Corporation......... 207 39,123
--------------
915,869
FOODS - 0.9%
Bestfoods...................... 472 22,096
Campbell Soup Company.......... 638 19,619
ConAgra, Inc................... 1,140 20,663
General Mills, Inc............. 493 17,840
H.J. Heinz Company............. 603 21,030
Kellogg Company................ 491 12,582
Nabisco Group Holdings
Corporation.................. 548 6,576
Quaker Oats Company*........... 209 12,671
Ralston-Ralston Purina Group... 910 24,911
Sara Lee Corporation........... 1,723 31,014
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
FOODS (CONTINUED)
Unilever NV.................... 831 $ 39,992
Wm. Wrigley Jr. Company........ 184 14,134
--------------
243,128
FOOTWEAR - 0.1%
Nike, Inc. (Cl.B).............. 440 17,435
Reebok International, Ltd.*.... 647 5,985
--------------
23,420
GAMING & LOTTERY - 0.6%
Harrah's Entertainment,
Inc.*........................ 445 8,260
Mirage Resorts, Inc.*.......... 7,308 141,593
--------------
149,853
GOLD & PRECIOUS METALS MINING - 0.1%
Barrick Gold Corporation....... 740 11,609
Homestake Mining Company....... 497 2,982
Newmont Mining Corporation..... 240 5,385
Placer Dome, Inc............... 624 5,070
--------------
25,046
HARDWARE & TOOLS - 0.1%
Black & Decker Corporation..... 94 3,531
Stanley Works.................. 537 14,163
--------------
17,694
HEALTH CARE - DIVERSE - 3.0%
Abbott Laboratories............ 2,543 89,482
Allergan, Inc.................. 201 10,050
American Home Products
Corporation(1)............... 2,218 118,940
Bristol-Myers Squibb
Company(1)................... 3,707 214,079
Johnson & Johnson(1)........... 2,667 186,857
Mallinckrodt, Inc.............. 72 2,070
Warner-Lambert Company(1)...... 1,958 190,905
--------------
812,383
HEALTH CARE - LONG TERM CARE - 0.0%
Manor Care, Inc.*.............. 703 9,490
HEALTH CARE - MANAGED CARE - 0.1%
Aetna, Inc..................... 196 10,915
Humana, Inc.................... 915 6,691
United HealthCare
Corporation.................. 276 16,456
Wellpoint Health Networks,
Inc.*........................ 60 4,193
--------------
38,255
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
43
<PAGE> 45
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
HEALTH CARE - PHARMACEUTICALS - GENERIC - 0.1%
Alza Corporation*.............. 164 $ 6,160
Watson Pharmaceuticals,
Inc.*........................ 161 6,390
--------------
12,550
HEALTH CARE - PHARMACEUTICALS - MAJOR - 2.8%
Eli Lilly & Company(1)......... 1,878 118,314
Merck & Company, Inc.(1)....... 4,466 277,450
Pfizer, Inc.(1)................ 6,299 230,307
Pharmacia & Upjohn, Inc........ 901 53,384
Schering-Plough
Corporation(1)............... 2,462 90,479
--------------
769,934
HEALTH CARE - SPECIALIZED SERVICES - 0.1%
HEALTHSOUTH Corporation*....... 1,550 8,622
Quintiles Transnational
Corporation*................. 147 2,508
--------------
11,130
HOMEBUILDING - 0.1%
Centex Corporation*............ 95 2,262
Kaufman & Broad Home
Corporation.................. 71 1,522
Pulte Corporation.............. 587 12,254
--------------
16,038
HOSPITAL MANAGEMENT - 0.2%
Columbia/HCA Healthcare
Corporation.................. 1,041 26,350
Tenet Healthcare
Corporation*................. 836 19,228
--------------
45,578
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.1%
Leggett & Platt, Inc........... 373 8,020
Maytag Corporation............. 447 14,807
Whirlpool Corporation.......... 95 5,569
--------------
28,396
HOUSEHOLD PRODUCTS - 1.0%
Clorox Company................. 362 11,765
Colgate-Palmolive Company...... 1,053 59,363
Fort James Corporation......... 336 7,392
Kimberly-Clark Corporation..... 990 55,440
Procter & Gamble Company(1).... 2,458 138,262
--------------
272,222
HOUSEWARES - 0.0%
Fortune Brands, Inc............ 235 5,875
Tupperware Corporation......... 108 1,708
--------------
7,583
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
INSURANCE - BROKERS - 0.2%
Marsh & McLennan Companies,
Inc.(1)...................... 474 $ 52,288
INSURANCE - LIFE & HEALTH - 0.3%
AFLAC, Inc..................... 436 19,865
American General Corporation... 403 22,618
Conseco, Inc................... 622 7,114
Jefferson-Pilot Corporation.... 330 21,966
Lincoln National Corporation... 285 9,548
Torchmark Corporation.......... 216 4,995
UnumProvident Corporation...... 452 7,684
--------------
93,790
INSURANCE - MULTILINE - 1.4%
American International Group,
Inc.(1)...................... 2,994 327,843
CIGNA Corporation.............. 316 23,937
Hartford Financial Services
Group, Inc................... 322 16,985
Loews Corporation.............. 150 7,500
--------------
376,265
INSURANCE - PROPERTY & CASUALTY - 0.3%
Allstate Corporation........... 809 19,264
Chubb Corporation.............. 292 19,728
Cincinnati Financial
Corporation.................. 224 8,428
MBIA, Inc...................... 127 6,612
Magic Investment Corporation... 387 16,883
Safeco Corporation............. 401 10,652
St. Paul Companies, Inc........ 369 12,592
--------------
94,159
INVESTMENT BANK/BROKERAGE - 0.8%
Bear Stearns Companies, Inc.... 159 7,254
Charles Schwab Corporation..... 779 44,257
Lehman Brothers Holdings,
Inc.......................... 364 35,308
Merrill Lynch & Company,
Inc.......................... 797 83,685
Paine Webber Group, Inc........ 514 22,616
T. Rowe Price Associates....... 498 19,671
--------------
212,791
INVESTMENT MANAGEMENT - 0.1%
Franklin Resources, Inc........ 391 13,074
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
44
<PAGE> 46
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
IRON & STEEL - 0.1%
Allegheny Teledyne, Inc........ 180 $ 3,611
Bethlehem Steel Corporation*... 1,288 7,728
NUCOR Corporation.............. 177 8,850
USX-US Steel Group, Inc........ 104 2,600
Worthington Industries, Inc.... 823 10,185
--------------
32,974
LEISURE TIME PRODUCTS - 0.2%
Brunswick Corporation.......... 551 10,434
Harley-Davidson, Inc........... 247 19,606
Hasbro, Inc.................... 832 13,728
Mattel, Inc.................... 804 8,392
--------------
52,160
LODGING - HOTELS - 0.1%
Carnival Corporation (Cl.A).... 820 20,346
Hilton Hotels Corporation...... 694 5,379
Marriott International, Inc.
(Cl.A)....................... 370 11,655
--------------
37,380
MACHINERY - DIVERSE - 0.3%
Caterpillar, Inc............... 831 32,772
Deere & Company................ 352 13,376
Dover Corporation.............. 601 28,773
Parker-Hannifin Corporation.... 148 6,114
Timken Company................. 355 5,769
--------------
86,804
MANUFACTURING - DIVERSIFIED - 1.9%
Corning, Inc................... 298 57,812
Crane Company.................. 127 2,993
Danaher Corporation............ 207 10,557
Honeywell International,
Inc.......................... 1,430 75,343
Illinois Tool Works, Inc....... 527 29,117
ITT Industries, Inc............ 37 1,149
Minnesota Mining &
Manufacturing Company........ 848 75,101
National Services Industries,
Inc.......................... 228 4,802
Textron, Inc................... 391 23,802
Thermo Electron Corporation*... 302 6,153
Tyco International, Ltd.(1).... 3,137 156,458
United Technologies
Corporation.................. 1,032 65,210
--------------
508,497
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - SPECIALIZED - 0.2%
Avery Dennison Corporation..... 175 $ 10,686
Briggs & Stratton
Corporation.................. 274 11,268
Millipore Corporation.......... 35 1,975
Pall Corporation............... 693 15,549
Sealed Air Corporation*........ 244 13,253
--------------
52,731
MEDICAL PRODUCTS & SUPPLIES - 0.8%
Bausch & Lomb, Inc............. 64 3,340
Baxter International, Inc...... 505 31,657
Becton, Dickinson & Company.... 357 9,394
Biomet, Inc.................... 481 17,496
Boston Scientific
Corporation*................. 785 16,730
C.R. Bard, Inc................. 246 9,517
Guidant Corporation*........... 518 30,465
Medtronic, Inc................. 1,997 102,721
St. Jude Medical, Inc.*........ 327 8,441
--------------
229,761
METALS & MINING - 0.1%
Freeport-McMoran Copper & Gold,
Inc.*........................ 573 6,912
INCO, Ltd.*.................... 587 10,749
Phelps Dodge Corporation....... 88 4,181
--------------
21,842
NATURAL GAS - 0.7%
Coastal Corporation............ 578 26,588
Columbia Energy Group.......... 112 6,636
El Paso Energy Corporation..... 357 14,414
Enron Corporation.............. 1,308 97,936
NICOR, Inc..................... 193 6,357
ONEOK, Inc..................... 196 4,900
Peoples Energy Corporation..... 180 4,939
Sempra Energy.................. 384 6,432
Williams Companies, Inc........ 755 33,173
--------------
201,375
OFFICE EQUIPMENT & SUPPLIES - 0.1%
Pitney-Bowes, Inc.............. 456 20,377
OIL - DOMESTIC - 0.5%
Amerada Hess Corporation....... 339 21,908
Atlantic Richfield Company..... 574 48,790
Conoco, Inc. (Cl.B)............ 1,151 29,494
Occidental Petroleum
Corporation.................. 892 18,509
Phillips Petroleum Company..... 422 19,518
USX-Marathon Group............. 274 7,141
--------------
145,360
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
45
<PAGE> 47
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
OIL - INTERNATIONAL - 3.4%
Chevron Corporation............ 1,324 $ 122,387
Exxon Corporation.............. 6,609 514,263
Royal Dutch Petroleum Company
NY(1)........................ 4,008 230,711
Texaco, Inc.................... 972 52,123
--------------
919,484
OIL & GAS - DRILLING & EQUIPMENT - 0.6%
Baker Hughes, Inc.............. 551 16,668
Halliburton Company............ 763 31,283
Rowan Companies, Inc.*......... 373 10,980
Schlumberger, Ltd.............. 1,000 76,500
Transocean Sedo Forex, Inc..... 316 16,215
--------------
151,646
OIL & GAS - EXPLORATION & PRODUCTION - 0.2%
Apache Corporation............. 142 7,064
Burlington Resources, Inc...... 323 11,951
Kerr-McGee Corporation......... 122 7,046
Union Pacific Resouces Group,
Inc.......................... 468 6,786
Unocal Corporation............. 360 10,710
--------------
43,557
OIL & GAS - REFINING & MARKETING - 0.0%
Ashland, Inc................... 51 1,705
Sunoco, Inc.................... 101 2,765
Tosco Corporation.............. 173 5,266
--------------
9,736
PAPER & FOREST PRODUCTS - 0.4%
Boise Cascade Corporation...... 307 10,668
Champion International
Corporation.................. 130 6,923
Georgia-Pacific Group.......... 235 9,297
International Paper Company.... 931 39,800
Louisiana-Pacific Company...... 201 2,789
Mead Corporation............... 94 3,284
Potlatch Corporation........... 285 12,255
Westvaco Corporation........... 491 16,387
Weyerhaeuser Company........... 117 6,669
Willamette Industries, Inc..... 136 5,457
--------------
113,529
PERSONAL CARE - 0.3%
Alberto-Culver Company......... 88 2,096
Gillette Company............... 1,926 72,586
--------------
74,682
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
PHOTOGRAPHY/IMAGING - 0.2%
Eastman Kodak Company.......... 732 $ 39,757
IKON Office Solutions, Inc..... 276 1,707
Xerox Corporation.............. 855 22,230
--------------
63,694
POWER PRODUCERS - 0.1%
AES Corporation*............... 442 34,807
PUBLISHING - 0.1%
Harcourt General, Inc.......... 60 2,235
McGraw-Hill Companies, Inc..... 545 24,797
--------------
27,032
PUBLISHING - NEWSPAPER - 0.3%
Dow Jones & Company, Inc....... 127 9,120
Gannett Company, Inc........... 482 33,921
Knight-Ridder, Inc............. 286 14,568
New York Times Company (Cl.A).. 265 11,378
Times Mirror Company........... 67 6,227
Tribune Company................ 369 13,492
--------------
88,706
RAILROADS - 0.3%
Burlington Northern Santa Fe
Corporation.................. 774 17,125
CSX Corporation................ 710 16,685
Kansas City Southern
Industries, Inc.............. 171 14,695
Norfolk Southern Corporation... 719 10,336
Union Pacific Corporation...... 426 16,667
--------------
75,508
RESTAURANTS - 0.4%
Darden Restaurants, Inc........ 862 15,354
McDonald's Corporation......... 2,481 93,193
Tricon Global Restaurants,
Inc.*........................ 237 7,362
Wendy's International, Inc..... 224 4,522
--------------
120,431
RETAIL - APPAREL - 0.4%
Gap, Inc....................... 1,562 77,807
Limited, Inc................... 599 25,233
TJX Companies, Inc............. 587 13,024
--------------
116,064
RETAIL - BUILDING SUPPLIES - 1.1%
Home Depot, Inc.(1)............ 4,310 277,995
Lowe's Companies, Inc.......... 375 21,891
Sherwin-Williams Company....... 311 6,822
--------------
306,708
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
46
<PAGE> 48
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
RETAIL - COMPUTERS & ELECTRONICS - 0.3%
Best Buy Company, Inc.*........ 468 $ 40,248
Circuit City Stores - Circuit
City Group................... 297 18,080
Tandy Corporation.............. 304 15,428
--------------
73,756
RETAIL - DEPARTMENT STORES - 0.4%
Dillard's, Inc................. 207 3,403
Federated Department Stores,
Inc.*........................ 528 22,044
J.C. Penney Company, Inc....... 488 7,259
Kohl's Corporation*............ 429 43,972
May Department Stores
Company...................... 504 14,364
Nordstrom, Inc................. 421 12,420
--------------
103,462
RETAIL - DISCOUNTERS - 0.1%
Consolidated Stores
Corporation*................. 859 9,771
Dollar General Corporation..... 467 12,551
--------------
22,322
RETAIL - DRUG STORES - 0.3%
CVS Corporation................ 325 12,208
Longs Drug Stores
Corporation.................. 380 8,645
Rite Aid Corporation........... 491 2,700
Walgreen Company............... 1,808 46,556
--------------
70,109
RETAIL - FOOD CHAINS - 1.1%
Albertson's, Inc............... 254 7,874
Great Atlantic & Pacific Tea
Company, Inc................. 325 6,338
Hannaford Bros. Company........ 2,700 199,125
Kroger Company*................ 1,576 27,678
Safeway, Inc.*................. 917 41,494
Winn-Dixie Stores, Inc......... 277 5,384
--------------
287,893
RETAIL - GENERAL MERCHANDISE - 2.3%
Costco Companies, Inc.*........ 937 49,251
Kmart Corporation*............. 933 9,038
Sears, Roebuck and Company..... 993 30,659
Target Corporation............. 792 59,202
Wal-Mart Stores, Inc.(1)....... 8,362 464,091
--------------
612,241
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
RETAIL - SPECIALTY - 0.2%
Autozone, Inc.*................ 224 $ 6,216
Bed Bath & Beyond, Inc.*....... 369 14,529
Office Depot, Inc.*............ 627 7,250
Staples, Inc.*................. 1,069 21,380
Toys "R" Us, Inc.*............. 832 12,324
--------------
61,699
SAVINGS & LOANS - 0.1%
Golden West Financial.......... 216 6,737
Washington Mutual, Inc......... 442 11,713
--------------
18,450
SERVICES - ADVERTISING & MARKETING - 0.2%
Interpublic Group of Companies,
Inc.......................... 474 22,397
Omnicom Group, Inc............. 309 28,872
Young & Rubicam, Inc........... 286 13,442
--------------
64,711
SERVICES - COMMERCIAL & CONSUMER - 0.2%
Cendant Corporation*........... 1,838 34,003
H&R Block, Inc................. 343 15,349
Service Corporation
International................ 514 1,542
--------------
50,894
SERVICES - COMPUTER SYSTEMS - 0.2%
Electronic Data Systems
Corporation.................. 852 54,688
NCR Corporation*............... 244 9,790
--------------
64,478
SERVICES - DATA PROCESSING - 0.5%
Automatic Data Processing,
Inc.......................... 1,124 54,233
Ceridian Corporation*.......... 269 5,161
First Data Corporation......... 735 32,524
Paychex, Inc................... 643 33,677
--------------
125,595
SPECIALTY PRINTING - 0.0%
Deluxe Corporation............. 74 1,961
R.R. Donnelley & Sons Company.. 198 4,146
--------------
6,107
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
47
<PAGE> 49
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - ENHANCED INDEX SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION - CELLULAR - 0.8%
Nextel Communications, Inc.
(Cl.A)*...................... 746 $ 110,595
Sprint Corporation (PCS
Group)*...................... 1,576 102,932
--------------
213,527
TELECOMMUNICATION - LONG DISTANCE - 2.6%
AT&T Corporation(1)............ 5,148 289,575
Global Crossing, Ltd.*......... 1,010 41,347
MCI WorldCom, Inc.*(1)......... 4,299 194,798
Sprint Corporation (FON
Group)(1).................... 2,839 178,857
--------------
704,577
TELEPHONE - 3.2%
ALLTEL Corporation............. 541 34,117
Bell Atlantic Corporation(1)... 2,875 175,734
BellSouth Corporation(1)....... 3,482 163,654
Centurytel, Inc................ 193 7,165
GTE Corporation(1)............. 1,785 126,735
SBC Communications, Inc.(1).... 6,609 277,578
U.S. West, Inc................. 1,078 78,290
--------------
863,273
TEXTILES - APPAREL - 0.1%
Liz Claiborne, Inc............. 360 16,493
V.F. Corporation............... 161 3,874
--------------
20,367
TEXTILES - HOMEFURNISHINGS - 0.0%
Spring Industries, Inc.
(Cl.A)....................... 260 9,880
TOBACCO - 0.4%
Philip Morris Companies,
Inc.......................... 4,377 92,464
UST, Inc....................... 629 9,828
--------------
102,292
TRUCKING - 0.0%
Ryder System, Inc.............. 122 2,768
TRUCKS & PARTS - 0.1%
Navistar International
Corporation*................. 265 10,633
Paccar, Inc.................... 341 17,050
--------------
27,683
WASTE MANAGEMENT - 0.1%
Allied Waste Industries,
Inc.*........................ 348 2,284
Waste Management, Inc.......... 1,177 16,110
--------------
18,394
--------------
Total common stocks - 90.8%................. 24,678,739
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES - 0.7%
U.S. Treasury Bill, 5.31% -
4/6/00....................... $180,000 $ 179,923
U.S. Treasury Bill, 5.20% -
4/6/00....................... $10,000 9,993
--------------
189,916
--------------
Total investments - 91.5%................. 24,868,655
Cash and other assets, less liabilities -
8.5%.................................... 2,297,726
--------------
Total net assets - 100.0%................. $ 27,166,381
==============
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
<S> <C> <C>
AUSTRALIA - 1.8%
Brambles Industries, Ltd....... 1,660 $ 42,219
Cable & Wireless Optus,
Ltd.*........................ 9,320 37,338
News Corporation, Ltd. ADR
PRF.......................... 1,830 87,382
Telstra Corporation, Ltd....... 10,150 34,151
--------------
201,090
BOTSWANA - 0.1%
Sechaba Breweries, Ltd......... 13,800 13,936
BRAZIL - 1.2%
Embratel Participacoes S.A..... 1,100 28,188
Tele Norte Leste Participacoes,
S.A.......................... 1,000 26,625
Telecommunicacoes Brasilerias
S.A. ADR(1).................. 520 77,838
--------------
132,651
CANADA - 3.6%
Celestica, Inc.*............... 1,360 71,522
Nortel Networks Corporation.... 1,860 233,301
Rogers Communications, Inc.
(Cl.B)*...................... 3,750 111,069
--------------
415,892
FINLAND - 4.5%
Jot Automation Group Oyj....... 5,980 53,789
Nokia Oyj...................... 1,000 217,250
Sonera Oyj..................... 2,810 191,718
Tietonenator Oyj............... 890 53,398
--------------
516,155
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
48
<PAGE> 50
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
FRANCE - 12.5%
AXA(1)......................... 760 $ 107,705
Aventis S.A.*.................. 45 2,433
Banque Nationale de Paris...... 1,210 95,522
Business Objects - S.A.*....... 466 46,367
Canal Plus(1).................. 1,173 258,162
Christian Dior S.A............. 260 60,134
Equant N.V.*................... 290 24,059
Lagardere S.C.A................ 1,360 110,422
Sanofi-Synthelabo S.A.*........ 2,267 86,446
Societe Generale (Cl.A)(1)..... 390 77,773
Societe Generale d'Enterprises
S.A.......................... 10 382
Suez Lyonnaise des Eaux
S.A.(1)...................... 860 147,799
Total Fina Elf S.A.
(Cl.B)(1).................... 1,467 219,690
Union du Credit-Bail
Immobilier................... 160 20,975
Vivendi........................ 1,480 170,654
--------------
1,428,523
GERMANY - 9.1%
Bayer AG(1).................... 3,150 141,006
Deutsche Lufthansa AG(1)....... 2,870 65,911
EM.TV & Merchandising AG(1).... 1,030 83,777
Epcos AG*(1)................... 1,310 172,362
Infineon Technologies AG*...... 399 21,705
Intershop Communications
AG*(1)....................... 300 152,147
Muenchener Rueckversicherungs-
Gesellschaft AG.............. 319 99,207
Siemens AG..................... 770 110,514
Systeme, Anwendungen, Produkte
in Der(1).................... 150 106,790
Thyssen Krupp AG*.............. 3,560 87,719
--------------
1,041,138
GREECE - 0.4%
Hellenic Telecommunications
Organization S.A............. 1,400 39,862
HONG KONG - 2.6%
China.com Corporation*......... 300 24,300
China Telecom (Hong Kong)
Ltd.*........................ 15,900 139,366
Hutchison Whampoa, Ltd......... 7,200 129,917
--------------
293,583
INDIA - 0.2%
Videsh Sanchar Nigam Ltd....... 1,000 26,775
IRELAND - 2.4%
Bank of Ireland................ 17,707 125,384
CRH plc........................ 8,000 143,535
--------------
268,919
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C> <C>
ISRAEL - 0.3%
Partner Communications Company,
Ltd.*(1)..................... 2,020 $ 33,582
ITALY - 5.2%
Eni SpA........................ 24,730 123,763
San Paolo - IMI SpA............ 7,297 99,920
Seat Pagine Gialle SpA......... 30,386 150,616
Telecom Italia SpA............. 8,590 128,228
Unicredito Italiano SpA........ 24,170 96,214
--------------
598,741
JAPAN - 12.8%
Fujitsu, Ltd.(1)............... 4,000 122,849
Furukawa Electric Company,
Ltd.(1)...................... 5,000 84,093
Kyocera Corporation............ 600 100,385
Murata Manufacturing Company,
Ltd.(1)...................... 1,000 243,260
Nippon Telegraph & Telephone
Corporation(1)............... 9 143,031
NTT Docomo, Inc.(1)............ 4 164,189
Rohm Company, Ltd.(1).......... 300 104,422
Softbank Corporation(1)........ 100 89,212
Sony Corporation............... 800 113,099
Takeda Chemical Industries,
Ltd.(1)...................... 2,100 149,466
Toshiba Corporation............ 14,000 142,778
--------------
1,456,784
MEXICO - 1.1%
Grupo Televisa S.A.*(1)........ 1,000 68,000
Telefonos de Mexico S.A.(1).... 800 53,600
--------------
121,600
NETHERLANDS - 8.8%
ASM Lithography Holding
N.V.*........................ 1,400 156,338
Buhrmann N.V................... 6,040 153,162
Fortis (NL) N.V................ 640 16,382
Ing Groep N.V.................. 2,520 136,485
Koninklijke (Royal) Philips
Electronics N.V.............. 1,052 176,769
KON N.V........................ 1,150 131,667
KPNQwest N.V.*................. 1,190 63,312
Stmicroelectronics N.V.(1)..... 930 174,084
--------------
1,008,199
POLAND - 0.3%
Telekomunikacja Polska
S.A.(1)...................... 3,453 31,607
PORTUGAL - 0.4%
PT Multimedia - Servicos de
Telecomunicacoes*............ 510 45,386
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
49
<PAGE> 51
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES
(CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
SINGAPORE - 1.0%
DBS Group Holdings, Ltd........ 2,000 $ 26,425
Natsteel Electronics, Ltd...... 9,500 62,204
Singapore Press Holdings,
Ltd.......................... 1,900 30,325
--------------
118,954
SOUTH KOREA - 1.4%
Korea Telecom Corporation(1)... 910 39,812
Pohang Iron & Steel Company,
Ltd.(1)...................... 1,200 33,000
SK Telecom Company, Ltd.(1).... 2,157 84,123
--------------
156,935
SPAIN - 4.4%
Banco Bilbao Vizcaya
Argentaria, S.A.............. 8,030 118,020
Banco Santander Central
Hispano, S.A................. 8,010 86,075
Telefonica S.A.*............... 5,593 141,291
Terra Networks, S.A.*.......... 570 45,898
Union Electrica Fenosa, S.A.... 5,630 115,613
--------------
506,897
SWEDEN - 2.7%
Sandvik AB - (Cl.B)............ 4,600 119,259
Telefonaktiebolaget LM Ericsson
AB - (Cl.B)*................. 2,130 187,115
--------------
306,374
SWITZERLAND - 1.9%
ABB, Ltd....................... 1,034 118,779
Ares-Serano Group - (Cl.B)..... 26 97,889
--------------
216,668
TAIWAN - 1.1%
GigaMedia, Ltd.*............... 740 40,145
Ritek Corporation GDR
144A*(1)..................... 1,860 33,573
Taiwan Semiconductor
Manufacturing Company*....... 7,518 50,647
--------------
124,365
TURKEY - 0.5%
Dogan Sirketler Grubu Holding
A.S.*........................ 933,900 34,093
Yapi ve Kredi Bankasi A.S. .... 1,053,900 28,184
--------------
62,277
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
UNITED KINGDOM - 12.4%
Barclays plc................... 4,270 $ 114,100
BP Amoco plc(1)................ 2,520 133,718
Cable & Wireless plc(1)........ 6,900 129,559
Celltech Group plc*............ 4,410 78,936
Colt Telecom Group plc*(1)..... 2,710 131,427
Logica plc..................... 2,390 80,831
Old Mutual plc*(1)............. 17,030 40,480
Reckitt Benckiser plc(1)....... 17,730 167,870
Shell Transport & Trading
Company plc(1)............... 21,560 180,400
Vodafone Airtouch plc(1)....... 64,003 356,852
--------------
1,414,173
UNITED STATES - 2.5%
IMPSAT Fiber Networks, Inc.*... 911 25,508
Infonet Services
Corporation*(1).............. 2,781 62,920
NTL, Inc.*(1).................. 1,120 103,950
UnitedGlobalcom, Inc.*......... 1,043 78,290
UTStarcom, Inc.*............... 247 19,281
--------------
289,949
--------------
Total common stocks - 95.2%............... 10,871,016
U.S. GOVERNMENT & AGENCIES - 0.5%
U.S. Treasury Bill, 5.50% -
5/11/00...................... $60,000 59,639
<CAPTION>
NUMBER MARKET
OPTIONS PURCHASED - 0.4% OF CONTRACTS VALUE
--------------------------------------------------------------
<S> <C> <C>
<S> <C> <C>
NIKKEI 225 Call Option 5%,
expires 6/9/00 strike price
19,727.46.................... 11,360 $ 11,380
NIKKEI 225 Call Option 5%,
expires 6/30/00 strike price
20,239.3125.................. 26,129 19,092
NIKKEI 225 Call Option 5%,
expires 6/30/00 strike price
20,922.6755.................. 27,480 14,382
CHF Put Option, expires 4/14/00
strike price 1.63............ 100,000,000 2,090
GBP Put Option, expires 4/14/00
strike price 1.59............ 250,000,000 1,233
--------------
48,177
--------------
Total investments - 96.1%.................. 10,978,832
Cash and other assets, less liabilities -
3.9%..................................... 450,135
--------------
Total net assets - 100.0%.................. $ 11,428,967
==============
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
50
<PAGE> 52
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - INTERNATIONAL SERIES
(CONTINUED)
INVESTMENT CONCENTRATION
--------------------------------------------------------------
At March 31, 2000, International Series' investment
concentration, by industry, was as follows:
Airlines..................................... 0.6%
Banks & Credit............................... 9.1%
Beverages.................................... 0.1%
Broadcast Media.............................. 5.0%
Building & Construction...................... 2.6%
Building Materials........................... 0.8%
Chemicals.................................... 1.2%
Communications............................... 0.4%
Computer Software............................ 5.0%
Computer Systems............................. 3.4%
Cosmetics.................................... 0.5%
Electric Utilities........................... 1.0%
Electrical Equipment......................... 2.1%
Electronics.................................. 7.3%
Engineering.................................. 1.0%
Financial Services........................... 2.2%
Health Care.................................. 1.5%
Household Products........................... 1.5%
Industrial Services.......................... 1.5%
Insurance.................................... 0.9%
Manufacturing................................ 2.8%
Medical...................................... 1.3%
Metals & Minerals............................ 0.3%
Miscellaneous................................ 1.3%
Oil.......................................... 5.7%
Pharmaceuticals.............................. 0.9%
Publishing................................... 1.3%
Real Estate Development...................... 0.2%
Semiconductors............................... 3.1%
Services..................................... 2.0%
Telecommunications........................... 28.2%
Transportation............................... 0.4%
U.S. Government.............................. 0.5%
Options...................................... 0.4%
Cash and other assets, less liabilities...... 3.9%
--------------
Total net assets............................. 100.0%
==============
<CAPTION>
SECURITY EQUITY FUND - SELECT 25 SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
--------------------------------------------------------------
<S> <C> <C>
<S> <C> <C>
BROADCAST MEDIA - 5.1%
Clear Channel Communications,
Inc.*........................ 17,300 $ 1,194,781
Univision Communications,
Inc.*........................ 10,600 1,197,800
--------------
2,392,581
COMMUNICATION EQUIPMENT - 6.1%
Lucent Technologies, Inc....... 23,200 1,409,400
Nokia OYJ - ADR................ 6,700 1,455,575
--------------
2,864,975
COMPUTERS - HARDWARE - 5.3%
Dell Computer Corporation*..... 21,200 1,143,475
Sun Microsystems, Inc.*........ 14,200 1,330,584
--------------
2,474,059
COMPUTERS - NETWORKING - 6.8%
Cisco Systems, Inc.*........... 31,400 2,427,612
Network Appliance, Inc.*....... 9,400 777,850
--------------
3,205,462
COMPUTERS - PERIPHERALS - 3.4%
EMC Corporation*............... 12,800 1,600,000
COMPUTERS - SOFTWARE & SERVICES - 13.9%
Digex, Inc.*................... 8,600 954,063
Microsoft Corporation*......... 33,000 3,506,250
PSINet, Inc.*.................. 22,600 768,753
Yahoo!, Inc.*.................. 7,500 1,285,312
--------------
6,514,378
ELECTRICAL EQUIPMENT - 9.1%
General Electric Company....... 21,500 3,336,531
Sanmina Corporation*........... 13,800 932,363
--------------
4,268,894
ELECTRONICS - SEMICONDUCTORS - 7.6%
Intel Corporation.............. 19,100 2,520,006
Texas Instruments, Inc......... 6,500 1,040,000
--------------
3,560,006
FINANCIAL - DIVERSE - 2.9%
Citigroup, Inc................. 22,900 1,358,256
HOUSEHOLD PRODUCTS - 3.1%
Colgate-Palmolive Company...... 25,700 1,448,838
LEISURE TIME PRODUCTS - 3.1%
Harley-Davidson, Inc........... 18,100 1,436,688
MANUFACTURING - DIVERSIFIED - 3.1%
Tyco International, Ltd........ 29,300 1,461,338
MEDICAL PRODUCTS & SUPPLIES - 2.8%
Medtronic, Inc................. 25,500 1,311,656
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
51
<PAGE> 53
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND - SELECT 25 SERIES
(CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
--------------------------------------------------------------
RETAIL - BUILDING SUPPLIES - 3.6%
Home Depot, Inc................ 25,800 $ 1,664,100
RETAIL - DRUG STORES - 2.4%
Walgreen Company............... 44,000 1,133,000
RETAIL - GENERAL MERCHANDISE - 4.0%
Wal-Mart Stores, Inc........... 33,800 1,875,900
SERVICES - ADVERTISING/MARKETING - 2.7%
Omnicom Group, Inc............. 13,400 1,252,063
SERVICES - DATA PROCESSING - 2.9%
Automatic Data Processing,
Inc.......................... 28,100 1,355,825
TELECOMMUNICATIONS - LONG DISTANCE - 2.9%
Nextel Communications, Inc.*... 9,300 1,378,725
UNIT INVESTMENT TRUST - 4.3%
Nasdaq - 100 Shares............ 18,500 2,028,063
--------------
Total common stocks - 95.1%.................. 44,584,807
<CAPTION>
COMMERCIAL PAPER
----------------
<S> <C> <C>
COMBINATION GAS & ELECTRIC - 0.8%
Pacific Gas & Electric Company
6.02%, 4-4-00................ $400,000 399,799
--------------
Total investments - 95.9%.................. 44,984,606
Cash, other assets, less liabilities -
4.1%..................................... 1,908,944
--------------
Total net assets - 100.0%.................. $ 46,893,550
==============
<CAPTION>
SECURITY ULTRA FUND
COMMON STOCKS
-------------
<S> <C> <C>
AIR FREIGHT - 1.3%
Expeditors International of
Washington, Inc.............. 68,000 $ 2,703,000
BANKS - MAJOR REGIONAL - 3.2%
Fleetboston Financial
Corporation.................. 25,701 938,087
Marshall & Ilsley
Corporation.................. 34,000 1,963,500
Northern Trust Corporation..... 52,000 3,513,250
--------------
6,414,837
</TABLE>
<TABLE>
<S> <C> <C>
<CAPTION>
SECURITY ULTRA FUND - (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
BIOTECHNOLOGY - 4.3%
Ligand Pharmaceuticals, Inc.
(Cl.B)*...................... 200,000 $ 3,550,000
Millennium Pharmaceuticals,
Inc.*........................ 35,000 4,545,625
Trimeris, Inc.*................ 10,800 539,325
--------------
8,634,950
BROADCAST MEDIA - 1.3%
Cinar Corporation (Cl.B)*...... 349,600 1,835,400
Salem Communications
Corporation*................. 56,200 670,887
--------------
2,506,287
CHEMICALS - SPECIALTY - 0.7%
Material Sciences
Corporation*................. 105,200 1,420,200
Rentech, Inc.*................. 15,400 51,494
--------------
1,471,694
COMMUNICATION EQUIPMENT - 5.9%
Comverse Technology, Inc.*..... 52,000 9,828,000
RCN Corporation*............... 26,000 1,400,750
Transcrypt International,
Inc.*........................ 166,500 613,969
--------------
11,842,719
COMPUTER HARDWARE - 4.3%
Safeguard Scientifics, Inc.*... 123,000 8,648,438
COMPUTER SOFTWARE/SERVICES - 18.4%
Axent Technologies, Inc.*...... 112,000 2,100,000
Computer Horizons
Corporation*................. 8,750 149,844
Computer Sciences
Corporation*................. 27,000 2,136,375
Digex, Inc.*................... 8,000 887,500
Diversinet Corporation*........ 55,000 983,125
Harbinger Corporation*......... 164,100 4,779,412
HNC Software, Inc.*............ 23,000 1,657,437
Hyperion Solutions
Corporation*................. 24,000 780,000
Jack Henry & Associates,
Inc.......................... 7,800 2,868,875
Lernout & Hauspie Speech
Products N.V.*............... 80,000 8,840,000
New Era of Networks, Inc.*..... 25,000 981,250
PSINet, Inc.*.................. 20,000 680,313
Rational Software
Corporation*................. 125,000 9,562,500
Take-Two Interactive Software,
Inc.*........................ 50,000 662,500
--------------
37,069,131
DISTRIBUTION - FOOD & HEALTH - 0.6%
Cardinal Health, Inc........... 260,000 1,192,750
ELECTRICAL EQUIPMENT - 1.3%
Maxwell Technologies, Inc.*.... 190,000 2,612,500
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
52
<PAGE> 54
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY ULTRA FUND - (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - INSTRUMENTATION - 6.8%
PE Corp - PE Biosystems
Group........................ 112,000 $ 10,808,000
Perkinelmer, Inc............... 44,000 2,926,000
--------------
13,734,000
ELECTRONICS - SEMICONDUCTORS - 1.1%
S3 Inc.*....................... 101,000 2,121,000
HEALTH CARE - PHARMACEUTICALS - GENERIC -
2.5%
Mylan Laboratories, Inc........ 181,300 4,985,750
HEALTH CARE - PHARMACEUTICALS - MAJOR - 4.3%
Guilford Pharmaceuticals,
Inc.*........................ 50,000 1,162,500
Penwest Pharmaceuticals
Company*..................... 10,000 123,125
Shire Pharmaceuticals Group
PLC*......................... 65,000 3,331,250
Teva Pharmaceuticals
Industries, Ltd. ADR......... 110,000 4,104,375
--------------
8,721,250
HEALTH CARE - SPECIALIZED SERVICES - 1.0%
CryoLife, Inc.*................ 52,300 941,400
Hooper Holmes, Inc............. 31,800 1,091,138
--------------
2,032,538
INSURANCE - LIFE & HEALTH - 2.1%
AFLAC, Inc..................... 82,000 3,736,125
UNUMProvident Corporation...... 30,000 510,000
--------------
4,246,125
INVESTMENT MANAGEMENT - 0.3%
Internet Capital Group,
Inc.*........................ 7,380 666,506
LEISURE TIME PRODUCTS - 1.9%
Hasbro, Inc.................... 57,000 940,500
Mattel, Inc.................... 275,000 2,870,312
--------------
3,810,812
MANUFACTURING - SPECIALIZED - 1.0%
Catalytica, Inc.*.............. 72,000 1,048,500
Federal Signal Corporation..... 53,600 968,150
--------------
2,016,650
MEDICAL PRODUCTS & SUPPLIES - 3.7%
Becton, Dickinson & Company.... 60,000 1,578,750
Chromavision Medical Systems,
Inc.*........................ 29,000 442,250
Closure Medical Corporation*... 168,000 4,410,000
Interpore International,
Inc.*........................ 19,400 162,475
Kensey Nash Corporation*....... 8,500 140,781
Sunrise Medical, Inc.*......... 100,000 625,000
--------------
7,359,256
</TABLE>
<TABLE>
<CAPTION>
SECURITY ULTRA FUND - (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
NATURAL GAS - 1.3%
Dynegy, Inc.................... 40,000 $ 2,510,000
OIL - DOMESTIC - 0.7%
Forest Oil Corporation*........ 130,000 1,381,250
OIL - INTERNATIONAL - 0.5%
Tesoro Petroleum
Corporation*................. 85,700 985,550
OIL & GAS - DRILLING & EQUIPMENT - 2.6%
Ensco International, Inc....... 94,600 3,417,425
R & B Falcon Corporation....... 25,300 498,094
Transocean Sedco Forex, Inc.... 250,000 1,282,812
--------------
5,198,331
OIL & GAS - EXPLORATION & PRODUCTION - 6.2%
Anadarko Petroleum
Corporation.................. 62,000 2,398,625
Apache Corporation............. 89,000 4,427,750
Callon Petroleum Company*...... 95,000 1,151,875
Evergreen Resources, Inc.*..... 61,500 1,487,531
Ocean Energy, Inc.*............ 208,000 2,990,000
--------------
12,455,781
PUBLISHING - 0.1%
John Wiley & Sons, Inc......... 13,600 244,800
PUBLISHING - NEWSPAPER - 1.6%
E.W. Scripps Company........... 65,000 3,152,500
RAILROADS - 0.5%
RailAmerica, Inc.*............. 150,000 1,012,500
RESTAURANTS - 1.7%
Cheesecake Factory, Inc.*...... 79,900 3,325,837
RETAIL - DISCOUNTERS - 2.4%
Consolidated Stores
Corporation*................. 85,000 966,875
Land's End, Inc.*.............. 70,000 4,305,000
--------------
5,271,875
RETAIL - DRUG STORES - 0.8%
CVS Corporation................ 42,000 1,577,625
SERVICES - ADVERTISING/MARKETING - 4.0%
Acxiom Corporation*............ 200,000 6,650,000
True North Communications,
Inc.......................... 35,000 1,375,937
--------------
8,025,937
SERVICES - COMMERCIAL & CONSUMER - 3.8%
Cerner Corporation*............ 77,900 2,103,300
DeVry, Inc.*................... 115,000 3,507,500
High Speed Access
Corporation*................. 63,200 825,550
Liquid Audio, Inc.*............ 80,000 1,060,000
U.S. Interactive, Inc.*........ 1,845 65,959
--------------
7,562,309
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
53
<PAGE> 55
SCHEDULE OF INVESTMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY ULTRA FUND
(CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
SERVICES - COMPUTER SYSTEMS - 3.1%
Comdisco, Inc.................. 90,000 $ 3,971,250
Sungard Data Systems, Inc.*.... 60,000 2,265,000
--------------
6,236,250
SERVICES - DATA PROCESSING - 0.4%
DST Systems, Inc.*............. 13,640 885,748
SPECIALTY PRINTING - 0.4%
Valassis Communications,
Inc.*........................ 23,000 766,188
TELECOMMUNICATIONS - CELLULAR - 0.6%
Metromedia International Group,
Inc.*........................ 200,000 1,125,000
--------------
Total common stocks - 96.7%............... 194,507,674
<CAPTION>
COMMERCIAL PAPER
----------------
BROKERAGE - 2.1%
Merrill Lynch & Company, Inc.,
6.12%, 4-3-00................ $ 3,200,000 3,198,912
6.07%, 4-11-00............... $ 1,100,000 1,098,145
--------------
4,297,057
COMBINATION GAS & ELECTRIC - 1.0%
Pacific Gas & Electric Company,
6.075%, 4-4-00............... $ 1,400,000 1,399,292
South Carolina Electric & Gas
Company, 6.06%, 4-3-00....... $ 600,000 599,798
--------------
1,999,090
</TABLE>
<TABLE>
<S> <C> <C>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMERCIAL PAPER (CONTINUED) OF SHARES VALUE
-------------------------------------------------------------
<S> <C> <C>
ELECTRIC COMPANIES - 0.4%
Florida Power & Light Company,
6.03%, 4-3-00................ $ 800,000 $ 799,732
--------------
Total commercial paper - 3.5%............. 7,095,879
--------------
Total investments - 100.2%................ 201,603,553
Liabilities, less cash & other assets -
(0.2%).................................. (352,269)
--------------
Total net assets - 100.0%................. $ 201,251,284
==============
</TABLE>
The identified cost of investments owned at March 31, 2000 was the same for book
and tax purposes.
* Non-income producing security.
ADR (American Depositary Receipt)
(1) Security is segregated as collateral for futures, forward contracts or
options.
See accompanying notes.
--------------------------------------------------------------------------------
54
<PAGE> 56
STATEMENTS OF ASSETS AND LIABILITIES
-------------------------------------------------------------------------------
MARCH 31, 2000
(UNAUDITED)
<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:
$67,403,581, $679,355,718, $64,047,747,
$6,669,228, and $20,171,202 respectively)...... $69,442,139 $1,110,454,619 $83,749,264 $7,737,006 $29,824,541
Cash............................................. 514,048 298,058 10,300,785 149,966 323,741
Receivables:
Fund shares sold............................... -- 118,705 4,713 -- --
Securities sold................................ 7,235,420 1,990,066 120,852 41,176 --
Interest....................................... 21,095 78,344 32,195 354 863
Dividends...................................... 108,299 655,421 127,731 4,364 15,773
Foreign taxes recoverable........................ -- -- 25,044 237 --
Prepaid expenses................................. -- -- -- 13,255 21,785
----------- -------------- ----------- ---------- -----------
Total assets................................. $77,321,001 $1,113,595,213 $94,360,584 $7,946,358 $30,186,703
----------- -------------- ----------- ---------- -----------
LIABILITIES
Payable for:
Securities purchased........................... $4,563,907 $ -- $ 945,161 $ 42,328 $ --
Fund shares redeemed........................... -- 28,395 -- -- --
Other liabilities:
Management fees................................ 76,483 941,870 145,619 4,857 24,423
Custodian fees................................. -- -- -- 7,987 668
Transfer and administration fees............... -- -- -- 1,436 5,505
Professional fees.............................. -- -- -- 2,412 6,026
12b-1 distribution plan fees................... 7,489 154,842 14,470 3,437 11,299
Security Management Company.................... -- -- -- -- --
Other payables................................. -- -- -- 464 374
----------- -------------- ----------- ---------- -----------
Total liabilities............................ 4,647,879 1,125,107 1,105,250 62,921 48,295
----------- -------------- ----------- ---------- -----------
NET ASSETS....................................... $72,673,122 $1,112,470,106 $93,255,334 $7,883,437 $30,138,408
=========== ============== =========== ========== ===========
NET ASSETS CONSIST OF:
Paid in capital.................................. $77,773,385 $ 567,042,135 $61,825,508 $6,681,789 $20,626,795
Accumulated undistributed net investment income
(loss)......................................... 311,497 (409,814) (725,195) (48,775) (120,345)
Accumulated undistributed net realized gain
(loss) on sale of investments, futures and
foreign currency transactions.................. (7,450,318) 114,738,884 12,459,180 182,700 (21,381)
Net unrealized appreciation in value of
investments, futures and translation of assets
and liabilities in foreign currency............ 2,038,558 431,098,901 19,695,841 1,067,723 9,653,339
----------- -------------- ----------- ---------- -----------
Total net assets............................. $72,673,122 $1,112,470,106 $93,255,334 $7,883,437 $30,138,408
=========== ============== =========== ========== ===========
CLASS "A" SHARES
Capital shares outstanding....................... 9,928,455 87,108,796 2,637,675 304,607 607,474
Net assets....................................... $64,319,750 $ 941,944,686 $52,734,944 $3,739,277 $17,185,573
Net asset value per share........................ $ 6.48 $ 10.81 $ 19.99 $ 12.28 $ 28.29
=========== ============== =========== ========== ===========
Offering price per share (net asset value divided
by 94.25%)..................................... $ 6.88 $ 11.47 $ 21.21 $ 13.03 $ 30.02
=========== ============== =========== ========== ===========
CLASS "B" SHARES
Capital shares outstanding....................... 1,275,784 16,195,466 2,053,692 340,368 453,344
Net assets....................................... $8,039,678 $ 165,477,255 $39,173,038 $4,108,811 $12,365,974
Net asset value per share........................ $ 6.30 $ 10.22 $ 19.07 $ 12.07 $ 27.28
=========== ============== =========== ========== ===========
CLASS "C" SHARES
Capital shares outstanding....................... 48,977 473,681 68,212 2,920 21,068
Net assets....................................... $ 313,694 $ 5,048,165 $ 1,347,352 $ 35,349 $ 586,861
Net asset value per share........................ $ 6.40 $ 10.66 $ 19.75 $ 12.10 $ 27.86
=========== ============== =========== ========== ===========
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
55
<PAGE> 57
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY EQUITY FUND
---------------------------------------------------------------------
SMALL ENHANCED
VALUE COMPANY INDEX INTERNATIONAL SELECT 25 SECURITY
SERIES SERIES SERIES SERIES SERIES ULTRA FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value (identified cost:
$34,695,323, $30,867,281, $21,714,306,
$8,321,514, $37,055,914, and $117,335,260
respectively)............................ $40,144,612 $44,152,109 $24,868,655 $10,978,832 $44,984,606 $201,603,553
Cash denominated in a foreign currency, at
value (identified cost: $0, $0, $0,
$131,732, $0, and $0 respectively)....... -- -- -- 132,219 -- --
Cash....................................... 124,217 6,032,917 2,343,699 757,569 1,234,617 681,343
Receivables:
Fund shares sold......................... 70,500 438,070 4,000 -- 191,667 85,428
Securities sold.......................... 415,530 2,086,931 -- 329,935 555,737 826,085
Variation margin......................... -- -- 25,393 -- -- --
Net unrealized appreciation on forward
foreign exchange contracts............. -- -- 9,188 3,319 -- --
Interest................................. 1,371 23,221 19,984 1,747 5,533 10,182
Dividends................................ 40,569 -- -- 10,762 21,475 64,107
Security Management Company................ -- -- -- 4,495 -- --
Foreign taxes recoverable.................. -- -- -- -- -- --
Prepaid expenses........................... 17,279 18,768 27,610 28,997 27,737 --
----------- ----------- ----------- ----------- ----------- ------------
Total assets........................... $40,814,078 $52,752,016 $27,298,529 $12,247,875 $47,021,372 $203,270,698
----------- ----------- ----------- ----------- ----------- ------------
LIABILITIES
Net unrealized depreciation on forward
foreign exchange contracts............... $ -- $ -- $ -- $ 13,709 $ -- $ --
Payable for:
Securities purchased..................... 360,871 1,462,574 37,487 690,641 -- 1,745,791
Fund shares redeemed..................... 11,738 572 10,515 -- 23,683 60,728
Variation margin......................... -- -- -- 25,970 -- --
Management fees.......................... 32,087 45,329 16,570 10,855 28,568 190,571
Custodian fees........................... 1,533 3,675 6,342 34,759 951 --
Transfer and administration fees......... 5,926 6,333 3,346 875 8,198 --
Professional fees........................ 3,385 3,787 1,735 4,502 325 --
12b-1 distribution plan fees............. 12,494 38,214 55,168 24,129 64,374 22,324
Short positions at value................. -- -- -- 11,370 -- --
Other payables........................... 830 262 985 2,098 1,723 --
----------- ----------- ----------- ----------- ----------- ------------
Total liabilities...................... 428,864 1,560,746 132,148 818,908 127,822 2,019,414
----------- ----------- ----------- ----------- ----------- ------------
NET ASSETS................................. $40,385,214 $51,191,270 $27,166,381 $11,428,967 $46,893,550 $201,251,284
=========== =========== =========== =========== =========== ============
NET ASSETS CONSIST OF:
Paid in capital............................ $29,385,842 $29,770,404 $23,647,370 $ 9,151,902 $40,312,763 $ 99,119,112
Accumulated undistributed net investment
income (loss)............................ (122,375) (165,675) (53,014) (177,816) (229,967) (549,143)
Accumulated undistributed net realized gain
loss) on sale of investments, futures and
foreign currency transactions............ 5,672,458 8,301,713 216,447 (165,379) (1,117,938) 18,413,022
Net unrealized appreciation (depreciation)
in value of investments, futures and
translation of assets and liabilities in
foreign currency......................... 5,449,289 13,284,828 3,355,578 2,620,260 7,928,692 84,268,293
----------- ----------- ----------- ----------- ----------- ------------
Total net assets....................... $40,385,214 $51,191,270 $27,166,381 $11,428,967 $46,893,550 $201,251,284
=========== =========== =========== =========== =========== ============
CLASS "A" SHARES
Capital shares outstanding................. 1,449,783 1,668,524 735,020 374,529 1,736,682 11,969,861
Net assets................................. $27,386,121 $40,994,135 $ 8,663,968 $ 4,796,170 $21,330,931 $173,621,381
Net asset value per share.................. $ 18.89 $ 24.57 $ 11.79 $ 12.81 $ 12.28 $ 14.50
=========== =========== =========== =========== =========== ============
Offering price per share (net asset value
divided by 94.25%)....................... $ 20.04 $ 26.07 $ 12.51 $ 13.59 $ 13.03 $ 15.38
=========== =========== =========== =========== =========== ============
CLASS "B" SHARES
Capital shares outstanding................. 608,996 302,743 1,015,257 232,781 1,563,701 1,967,526
Net assets................................. $11,199,274 $ 7,232,194 $11,872,980 $ 2,955,860 $19,082,443 $ 26,304,717
Net asset value per share.................. $ 18.39 $ 23.89 $ 11.69 $ 12.70 $ 12.20 $ 13.37
=========== =========== =========== =========== =========== ============
CLASS "C" SHARES
Capital shares outstanding................. 96,397 122,030 566,139 288,290 529,279 92,566
Net assets................................. $ 1,799,819 $ 2,964,941 $ 6,629,433 $ 3,676,937 $ 6,480,176 $ 1,325,186
Net asset value per share.................. $ 18.67 $ 24.30 $ 11.71 $ 12.75 $ 12.24 $ 14.32
=========== =========== =========== =========== =========== ============
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
56
<PAGE> 58
STATEMENTS OF OPERATIONS
-------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<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...................................... $ 912,335 $ 4,697,064 $ 239,465 $ 31,597 $ 104,916
Interest....................................... 140,146 1,486,318 120,744 2,795 17,750
----------- ------------ ----------- -------- ----------
1,052,481 6,183,382 360,209 34,392 122,666
Less foreign tax expense..................... -- -- (21,808) -- --
----------- ------------ ----------- -------- ----------
Total investment income...................... 1,052,481 6,183,382 338,401 34,392 122,666
EXPENSES:
Management fees................................ 495,763 5,712,580 638,271 28,888 134,146
Custodian fees................................. -- -- -- 9,132 1,537
Transfer/maintenance fees...................... -- -- -- 6,535 24,488
Administration fees............................ -- -- -- 3,467 12,073
Directors' fees................................ -- -- -- 97 --
Professional fees.............................. -- -- -- 3,751 3,200
Reports to shareholders........................ -- -- -- 401 1,005
Registration fees.............................. -- -- -- 11,075 10,563
Other expenses................................. -- -- -- 116 150
12b-1 distribution plan fees................... 47,399 880,613 117,067 19,705 55,849
----------- ------------ ----------- -------- ----------
Total expenses................................. 543,162 6,593,193 755,338 83,167 243,011
----------- ------------ ----------- -------- ----------
Net investment income (loss)................... 509,319 (409,811) (416,937) (48,775) (120,345)
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) during the period on:
Investments.................................... (7,439,103) 131,293,021 13,872,240 98,657 (14,662)
Futures........................................ -- (3,789,921) -- -- --
Foreign currency transactions.................. -- -- (253,417) (48) --
----------- ------------ ----------- -------- ----------
Net realized gain (loss)..................... (7,439,103) 127,503,100 13,618,823 98,609 (14,662)
Unrealized appreciation (depreciation) during the
period on:
Investments.................................... 1,313,175 (985,340) 12,817,410 693,554 4,754,001
Translation of assets and liabilities in
foreign currencies........................... -- -- 48,371 (10) --
----------- ------------ ----------- -------- ----------
Net unrealized appreciation (depreciation)..... 1,313,175 (985,340) 12,865,781 693,544 4,754,001
----------- ------------ ----------- -------- ----------
Net gain (loss).............................. (6,125,928) 126,517,760 26,484,604 792,153 4,739,339
----------- ------------ ----------- -------- ----------
Net increase (decrease) in net assets
resulting from operations............... $(5,616,609) $126,107,949 $26,067,667 $743,378 $4,618,994
=========== ============ =========== ======== ==========
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
57
<PAGE> 59
STATEMENTS OF OPERATIONS (CONTINUED)
-------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<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......................... $ 155,393 $ 2,762 $ 134,368 $ 31,312 $ 68,255 $ 216,144
Interest.......................... 5,114 56,317 51,213 7,596 40,910 184,547
---------- ----------- ---------- ---------- ---------- -----------
160,507 59,079 185,581 38,908 109,165 400,691
Less foreign tax expense........ -- -- -- (7,866) -- --
---------- ----------- ---------- ---------- ---------- -----------
Total investment income......... 160,507 59,079 185,581 31,042 109,165 400,691
EXPENSES:
Management fees................... 172,079 160,513 95,272 53,036 144,854 866,281
Custodian fees.................... 3,143 5,622 10,868 63,574 353 --
Transfer/maintenance fees......... 21,525 11,291 9,913 2,285 27,254 --
Administration fees............... 15,487 14,446 11,433 17,170 17,382 --
Directors' fees................... 82 154 124 124 77 --
Professional fees................. 3,761 3,761 2,846 4,007 2,789 --
Reports to shareholders........... 842 285 325 51 797 --
Registration fees................. 11,495 11,432 12,741 12,339 18,597 --
Other expenses.................... 374 167 178 66 219 --
12b-1 distribution plan fees...... 54,094 52,277 94,895 33,960 126,810 83,553
---------- ----------- ---------- ---------- ---------- -----------
Total expenses.................... 282,882 259,948 238,595 186,612 339,132 949,834
Less reimbursement of expenses.... -- (35,191) -- (53,219) -- --
---------- ----------- ---------- ---------- ---------- -----------
Net expenses...................... 282,882 224,757 238,595 133,393 339,132 949,834
---------- ----------- ---------- ---------- ---------- -----------
Net investment income (loss)...... (122,375) (165,678) (53,014) (102,351) (229,967) (549,143)
NET REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized gain (loss) during the
period on:
Investments....................... 5,925,091 8,828,872 276,406 210,833 (749,471) 20,604,750
Foreign currency transactions..... -- -- -- (45,008) -- --
---------- ----------- ---------- ---------- ---------- -----------
Net realized gain (loss)........ 5,925,091 8,828,872 276,406 165,825 (749,471) 20,604,750
Unrealized appreciation
(depreciation) during the period
on:
Investments....................... 272,984 8,914,818 3,994,838 2,305,517 6,531,005 51,703,320
Translation of assets and
liabilities in foreign
currencies...................... -- -- -- (1,356) -- --
---------- ----------- ---------- ---------- ---------- -----------
Net unrealized appreciation....... 272,984 8,914,818 3,994,838 2,304,161 6,531,005 51,703,320
---------- ----------- ---------- ---------- ---------- -----------
Net gain........................ 6,198,075 17,743,690 4,271,244 2,469,986 5,781,534 72,308,070
---------- ----------- ---------- ---------- ---------- -----------
Net increase in net assets
resulting from
operations................. $6,075,700 $17,578,012 $4,218,230 $2,367,635 $5,551,567 $71,758,927
========== =========== ========== ========== ========== ===========
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
58
<PAGE> 60
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<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)................. $ 509,319 $ (409,811) $ (416,937) $ (48,775) $ (120,345)
Net realized gain (loss)..................... (7,439,103) 127,503,100 13,618,823 98,609 (14,662)
Unrealized appreciation (depreciation) during
the period................................. 1,313,175 (985,340) 12,865,781 693,544 4,754,001
------------ -------------- ----------- ---------- -----------
Net increase (decrease) in net assets
resulting from operations.................. (5,616,609) 126,107,949 26,067,667 743,378 4,618,994
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................. (1,285,098) (3) -- -- --
Class B.................................. (75,788) -- -- -- --
Class C.................................. (5,850) -- -- -- --
Net realized gain (loss)
Class A.................................. (1,172,179) (32,981,442) (2,782,654) (196,255) (229,880)
Class B.................................. (159,997) (6,354,549) (1,989,962) (202,329) (157,943)
Class C.................................. (5,955) (208,842) (27,301) (692) (7,240)
------------ -------------- ----------- ---------- -----------
Total distributions to shareholders...... (2,704,867) (39,544,836) (4,799,917) (399,276) (395,063)
NET INCREASE (DECREASE) FROM CAPITAL SHARE
TRANSACTIONS:.............................. (3,927,115) (55,650,311) 22,902,405 292,036 2,971,617
------------ -------------- ----------- ---------- -----------
Total increase (decrease) in net
assets................................. (12,248,591) 30,912,802 44,170,155 636,138 7,195,548
------------ -------------- ----------- ---------- -----------
NET ASSETS:
Beginning of period.......................... 84,921,713 1,081,557,304 49,085,179 7,247,299 22,942,860
------------ -------------- ----------- ---------- -----------
End of period................................ $72,673,122 $1,112,470,106 $93,255,334 $7,883,437 $30,138,408
============ ============== =========== ========== ===========
Undistributed net investment income (loss) at
end of period.............................. $ 311,497 $ (409,814) $ (725,195) $ (48,775) $ (120,345)
============ ============== =========== ========== ===========
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
59
<PAGE> 61
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<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)...................... $ (122,375) $ (165,678) $ (53,014) $ (102,351) $ (229,967) $ (549,143)
Net realized gain (loss)...... 5,925,091 8,828,872 276,406 165,825 (749,471) 20,604,750
Unrealized appreciation
(depreciation) during the
period...................... 272,984 8,914,818 3,994,838 2,304,161 6,531,005 51,703,320
----------- ----------- ----------- ----------- ----------- ------------
Net increase (decrease) in
net assets resulting from
operations................ 6,075,700 17,578,012 4,218,230 2,367,635 5,551,567 71,758,927
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income
Class A..................... -- 3 -- -- -- --
Class B..................... -- -- -- -- -- --
Class C..................... -- -- -- -- -- --
Net realized gain
Class A..................... (939,566) (562,443) (95,114) -- -- (4,644,954)
Class B..................... (379,199) (43,258) (118,324) -- -- (603,540)
Class C..................... (48,048) (38,867) (63,100) -- -- (7,207)
----------- ----------- ----------- ----------- ----------- ------------
Total distributions to
shareholders.............. (1,366,813) (644,565) (276,538) -- -- (5,255,701)
NET INCREASE FROM CAPITAL SHARE
TRANSACTIONS:................. 2,052,458 14,060,765 839,414 1,612,905 9,987,086 30,597,431
----------- ----------- ----------- ----------- ----------- ------------
Total increase in net
assets.................... 6,761,345 30,994,212 4,781,106 3,980,540 15,538,653 97,100,657
----------- ----------- ----------- ----------- ----------- ------------
NET ASSETS:
Beginning of period........... 33,623,869 20,197,058 $22,385,275 7,448,427 31,354,897 104,150,627
----------- ----------- ----------- ----------- ----------- ------------
End of period................. $40,385,214 $51,191,270 $27,166,381 $11,428,967 $46,893,550 $201,251,284
=========== =========== =========== =========== =========== ============
Accumulated undistributed net
investment income (loss) at
end of period................. $ (122,375) $ (165,675) $ (53,014) $ (177,816) $ (229,967) $ (549,143)
=========== =========== =========== =========== =========== ============
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
60
<PAGE> 62
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
FOR THE PERIOD 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 32,211,395 3,673,233 454,525 389,442
Unrealized appreciation during the period.... 7,103,219 152,612,834 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) (79,955) (47,225) --
Class B.................................... (38,484) -- -- (14,003) --
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
============ ============== =========== ========== ===========
Undistributed net investment income (loss) at
end of period.............................. $ 1,168,914 $ -- $ (308,258) $ -- $ --
============ ============== =========== ========== ===========
</TABLE>
See accompanying notes.
--------------------------------------------------------------------------------
61
<PAGE> 63
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
FOR THE PERIOD 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)........ 1,382,994 785,644 221,310 (417,768) (368,467) 4,048,648
Unrealized appreciation
(depreciation) during the
period........................ 5,996,566 4,231,812 (639,260) 316,099 1,397,687 33,757,943
----------- ----------- ----------- ---------- ----------- ------------
Net increase (decrease) in net
assets resulting from
operations.................. 7,171,442 4,991,572 (422,681) (130,543) 886,230 37,014,380
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income
Class A....................... -- -- -- -- -- --
Class B....................... -- -- -- -- -- --
Class C....................... -- -- -- -- -- --
Net realized gain
Class A....................... (55,560) -- -- -- -- (17,136,006)
Class B....................... (30,703) -- -- -- -- (1,984,512)
Class C....................... -- -- -- -- -- --
----------- ----------- ----------- ---------- ----------- ------------
Total distributions to
shareholders.............. (86,263) -- -- -- -- (19,120,518)
NET INCREASE FROM CAPITAL SHARE
TRANSACTIONS:
9,023,108 11,024,529 22,807,956 7,578,970 30,468,667 13,092,244
----------- ----------- ----------- ---------- ----------- ------------
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 (loss) at end of
period........................ $ -- $ -- $ -- $ 14,551 $ -- $ --
=========== =========== =========== ========== =========== ============
</TABLE>
*Period January 29, 1999 (inception) through September 30, 1999.
See accompanying notes.
--------------------------------------------------------------------------------
62
<PAGE> 64
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
------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD....................... $7.17 $7.68 $11.14 $9.05 $7.93 $6.96
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).............................. 0.05 0.12 0.13 0.15 0.18 0.16
Net Gain (Loss) on Securities (realized and unrealized)... (0.50) 0.75 (0.87) 2.81 1.37 1.18
------- ------- ------- ------- ------- -------
Total from Investment Operations.......................... (0.45) 0.87 (0.74) 2.96 1.55 1.34
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................... (0.13) (0.04) (0.13) (0.16) (0.16) (0.16)
Distributions (from Capital Gains)........................ (0.11) (1.34) (2.59) (0.71) (0.27) (0.21)
------- ------- ------- ------- ------- -------
Total Distributions..................................... (0.24) (1.38) (2.72) (0.87) (0.43) (0.37)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD............................. $6.48 $7.17 $7.68 $11.14 $9.05 $7.93
======= ======= ======= ======= ======= =======
TOTAL RETURN (A).......................................... (6.42%) 12.00% (7.95%) 35.31% 20.31% 20.25%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)...................... $64,320 $74,796 $76,371 $91,252 $73,273 $67,430
Ratio of Expenses to Average Net Assets................... 1.25% 1.22% 1.21% 1.24% 1.29% 1.31%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................. 1.41% 1.63% 1.49% 1.53% 2.09% 2.21%
Portfolio Turnover Rate................................... 189% 98% 144% 124% 69% 130%
</TABLE>
--------------------------------------------------------------------------------
SECURITY GROWTH AND INCOME FUND (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD........................ $6.95 $7.54 $10.99 $8.94 $7.85 $6.90
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income...................................... 0.01 0.05 0.05 0.05 0.09 0.08
Net Gain (Loss) on Securities (realized and unrealized).... (0.50) 0.73 (0.88) 2.77 1.35 1.18
------ ------ ------ ------- ------ ------
Total from Investment Operations........................... (0.49) 0.78 (0.83) 2.82 1.44 1.26
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)..................... (0.05) (0.03) (0.03) (0.06) (0.08) (0.09)
Distributions (from Capital Gains)......................... (0.11) (1.34) (2.59) (0.71) (0.27) (0.22)
------ ------ ------ ------- ------ ------
Total Distributions...................................... (0.16) (1.37) (2.62) (0.77) (0.35) (0.31)
------ ------ ------ ------- ------ ------
NET ASSET VALUE END OF PERIOD.............................. $6.30 $6.95 $7.54 $10.99 $8.94 $7.85
====== ====== ====== ======= ====== ======
TOTAL RETURN (A)........................................... (7.03%) 10.93% (8.95%) 34.01% 19.01% 19.07%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)....................... $8,040 $9,829 $9,257 $6,737 $2,247 $1,130
Ratio of Expenses to Average Net Assets.................... 2.25% 2.22% 2.21% 2.24% 2.29% 2.31%
Ratio of Net Income (Loss) to Average
Net Assets............................................... 0.41% 0.63% 0.59% 0.53% 1.09% 1.21%
Portfolio Turnover Rate.................................... 189% 98% 144% 124% 69% 130%
</TABLE>
--------------------------------------------------------------------------------
63
<PAGE> 65
FINANCIAL HIGHLIGHTS (CONTINUED)
-------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY GROWTH AND INCOME FUND (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(J)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $7.11 $6.87
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ 0.01 0.03
Net Gain (Loss) on Securities (realized and unrealized)..... (0.50) 0.21
------ ------
Total from Investment Operations............................ (0.49) 0.24
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... (0.11) --
Distributions (from Capital Gains).......................... (0.11) --
------ ------
Total Distributions....................................... (0.22) --
------ ------
NET ASSET VALUE END OF PERIOD............................... $6.40 $7.11
====== ======
TOTAL RETURN (A)............................................ (6.93%) 3.49%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $314 $297
Ratio of Expenses to Average Net Assets..................... 2.25% 2.22%
Ratio of Net Investment Income (Loss) to Average
Net Assets................................................ 0.41% 0.62%
Portfolio Turnover Rate..................................... 189% 90%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
64
<PAGE> 66
FINANCIAL HIGHLIGHTS (CONTINUED)
-------------------------------------------------------------------------------
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
---------------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD.................. $ 9.96 $ 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)........................................ 1.21 1.80 0.56 2.20 1.48 1.38
---------- ---------- ---------- -------- -------- --------
Total from Investment Operations..................... 1.21 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 Capital Gains)................... (0.36) (0.68) (0.80) (0.65) (0.48) (0.41)
---------- ---------- ---------- -------- -------- --------
Total Distributions................................ (0.36) (0.72) (0.83) (0.69) (0.54) (0.41)
---------- ---------- ---------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................ $ 10.81 $ 9.96 $ 8.86 $ 9.09 $ 7.54 $ 6.55
========== ========== ========== ======== ======== ========
TOTAL RETURN (A)..................................... 12.35% 20.66% 7.38% 32.08% 24.90% 27.77%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)................. $941,945 $917,179 $773,606 $757,520 $575,680 $440,339
Ratio of Expenses to Average Net Assets.............. 1.02% 1.02% 1.02% 1.03% 1.04% 1.05%
Ratio of Net Investment Income (Loss) to Average Net
Assets............................................. 0.08% 0.19% 0.39% 0.46% 0.75% 0.87%
Portfolio Turnover Rate.............................. 70% 36% 47% 66% 64% 95%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--EQUITY SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(FD) 1996(D) 1995(D)
---------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD.................. $ 9.47 $ 8.52 $ 8.82 $ 7.36 $ 6.43 $ 5.49
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)......................... (0.05) (0.08) (0.05) (0.04) (0.02) (0.01)
Net Gain (Loss) on Securities (realized and
unrealized)........................................ 1.16 1.71 0.55 2.15 1.45 1.36
---------- ---------- ---------- -------- -------- --------
Total from Investment Operations..................... 1.11 1.63 0.50 2.11 1.43 1.35
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)............... -- -- -- -- (0.02) --
Distributions (from Capital Gains)................... (0.36) (0.68) (0.80) (0.65) (0.48) (0.41)
---------- ---------- ---------- -------- -------- --------
Total Distributions................................ (0.36) (0.68) (0.80) (0.65) (0.50) (0.41)
---------- ---------- ---------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........................ $ 10.22 $ 9.47 $ 8.52 $ 8.82 $ 7.36 $ 6.43
========== ========== ========== ======== ======== ========
TOTAL RETURN (A)..................................... 11.93% 19.23% 6.38% 30.85% 23.57% 26.69%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)................. $165,477 $159,872 $112,978 $89,336 $38,822 $19,288
Ratio of Expenses to Average Net Assets.............. 2.02% 2.02% 2.02% 2.03% 2.04% 2.05%
Ratio of Net Investment Income (Loss) to Average Net
Assets............................................. (0.92%) (0.82%) (0.61%) (0.54%) (0.25%) (0.13%)
Portfolio Turnover Rate.............................. 70% 36% 47% 66% 64% 95%
</TABLE>
--------------------------------------------------------------------------------
65
<PAGE> 67
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND--EQUITY SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(J)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.89 $ 10.13
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.05) (0.05)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.18 (0.19)
---------- ----------
Total from Investment Operations............................ 1.13 (0.24)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.36) --
---------- ----------
Total Distributions....................................... (0.36) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 10.66 $ 9.89
========== ==========
TOTAL RETURN (A)............................................ 11.74% (2.37%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 5,048 $ 4,507
Ratio of Expenses to Average Net Assets..................... 2.02% 2.02%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.91%) (0.89%)
Portfolio Turnover Rate..................................... 70% 45%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
66
<PAGE> 68
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
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
---------------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD....................... $ 13.99 $ 11.23 $ 13.56 $ 12.42 $ 10.94 $ 10.84
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).............................. (0.08) 0.01 0.02 0.01 0.0 (0.02)
Net Gain (Loss) on Securities (realized and unrealized)... 7.57 3.71 (1.19) 2.29 1.87 0.31
---------- ---------- ---------- -------- -------- --------
Total from Investment Operations.......................... 7.49 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 Capital Gains)........................ (1.49) (0.91) (1.07) (0.78) (0.15) (0.19)
In Excess of Net Investment Income........................ -- (0.04) -- -- -- --
---------- ---------- ---------- -------- -------- --------
Total Distributions..................................... (1.49) (0.96) (1.16) (1.16) (0.40) (0.19)
---------- ---------- ---------- -------- -------- --------
NET ASSET VALUE END OF PERIOD............................. $ 19.99 $ 13.99 $ 11.23 $ 13.56 $ 12.42 $ 10.94
========== ========== ========== ======== ======== ========
TOTAL RETURN (A).......................................... 55.85% 34.39% (8.47%) 20.22% 17.73% 2.80%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)...................... $52,735 $28,292 $18,941 $24,193 $19,644 $16,261
Ratio of Expenses to Average Net Assets................... 1.96% 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................. (0.93%) 0.11% 0.15% 0.07% 0.07% (0.17%)
Portfolio Turnover Rate................................... 95% 141% 122% 132% 142% 141%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--GLOBAL SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD....................... $ 13.45 $ 10.89 $ 13.22 $ 12.18 $ 10.74 $ 10.75
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).............................. (0.14) (0.11) (0.10) (0.11) (0.10) (0.12)
Net Gain (Loss) on Securities (realized and unrealized)... 7.25 3.58 (1.16) 2.24 1.84 0.30
---------- ---------- ---------- -------- -------- --------
Total from Investment Operations.......................... 7.11 3.47 (1.26) 2.13 1.74 0.18
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................... -- -- -- (0.31) (0.14) --
Distributions (from Capital Gains)........................ (1.49) (0.91) (1.07) (0.78) (0.16) (0.19)
---------- ---------- ---------- -------- -------- --------
Total Distributions..................................... (1.49) (0.91) (1.07) (1.09) (0.30) (0.19)
---------- ---------- ---------- -------- -------- --------
NET ASSET VALUE END OF PERIOD............................. $ 19.07 $ 13.45 $ 10.89 $ 13.22 $ 12.18 $ 10.74
========== ========== ========== ======== ======== ========
TOTAL RETURN (A).......................................... 55.24% 33.04% (9.43%) 19.01% 16.57% 1.79%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)...................... $39,173 $20,591 $12,619 $13,061 $7,285 $5,433
Ratio of Expenses to Average Net Assets................... 2.81% 3.00% 3.00% 3.00% 3.00% 3.00%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................. (1.76%) (0.87%) (0.85%) (0.93%) (0.93%) (1.17%)
Portfolio Turnover Rate................................... 95% 141% 122% 132% 142% 141%
</TABLE>
--------------------------------------------------------------------------------
67
<PAGE> 69
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
c-------------------------------------------------------------------------------
SECURITY EQUITY FUND -- GLOBAL SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(J)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 13.90 $ 12.68
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.14) (0.03)
Net Gain (Loss) on Securities (realized and unrealized)..... 7.48 1.25
---------- ----------
Total from Investment Operations............................ 7.34 1.22
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (1.49) --
---------- ----------
Total Distributions....................................... (1.49) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 19.75 $ 13.90
========== ==========
TOTAL RETURN (A)............................................ 55.10% 9.62%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 1,347 $ 202
Ratio of Expenses to Average Net Assets..................... 2.95% 3.00%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.74%) (0.49%)
Portfolio Turnover Rate..................................... 95% 90%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
68
<PAGE> 70
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------
2000(D)(L) 1999(C)(D)(K) 1998(C)(D) 1997(C)(D)(G) 1996(C)(D) 1995(B)(C)(D)
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD........ $ 11.69 $ 10.73 $ 12.58 $ 11.06 $ 10.54 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............... (0.05) (0.03) 0.08 0.17 0.25 0.04
Net Gain (Loss) on Securities (realized and
unrealized).............................. 1.28 1.90 (0.98) 1.86 0.77 0.50
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations........... 1.23 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 Capital Gains)......... (0.64) (0.75) (0.75) (0.25) (0.17) --
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions...................... (0.64) (0.91) (0.95) (0.51) (0.50) --
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE END OF PERIOD.............. $ 12.28 $ 11.69 $ 10.73 $ 12.58 $ 11.06 $ 10.54
========== ========== ========== ========== ========== ==========
TOTAL RETURN (A)........................... 10.73% 17.84% (7.19%) 19.00% 10.01% 5.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)....... $3,739 $3,587 $3,294 $3,906 $2,449 $1,906
Ratio of Expenses to Average Net Assets.... 1.65% 2.00% 2.00% 1.68% 2.00% 2.00%
Ratio of Net Investment Income (Loss) to
Average Net Assets....................... (0.76%) (0.29%) 0.65% 1.52% 2.32% 1.33%
Portfolio Turnover Rate.................... 69% 121% 45% 79% 75% 129%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--TOTAL RETURN SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------------------------
2000(D)(L) 1999(C)(D)(K) 1998(C)(D) 1997(C)(D)(G) 1996(C)(D) 1995(B)(C)(D)
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD........ $ 11.56 $ 10.62 $ 12.45 $ 10.97 $ 10.50 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............... (0.10) (0.14) (0.03) 0.07 0.14 0.01
Net Gain (Loss) on Securities (realized and
unrealized).............................. 1.25 1.88 (0.96) 1.84 0.77 0.49
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations........... 1.15 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 Capital Gains)......... (0.64) (0.75) (0.75) (0.25) (0.17) --
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions...................... (0.64) (0.80) (0.84) (0.43) (0.44) --
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE END OF PERIOD.............. $ 12.07 $ 11.56 $ 10.62 $ 12.45 $ 10.97 $ 10.50
========== ========== ========== ========== ========== ==========
TOTAL RETURN (A)........................... 10.13% 16.68% (7.99%) 17.95% 8.97% 5.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)....... $4,109 $3,652 $3,304 $3,851 $2,781 $1,529
Ratio of Expenses to Average Net Assets.... 2.65% 2.94% 2.94% 2.58% 3.00% 3.00%
Ratio of Net Investment Income (Loss) to
Average Net Assets....................... (1.75%) (1.23%) (0.29%) 0.61% 1.32% 0.31%
Portfolio Turnover Rate.................... 69% 21% 45% 79% 75% 129%
</TABLE>
--------------------------------------------------------------------------------
69
<PAGE> 71
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND--TOTAL RETURN SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------------
2000(D)(L) 1999(C)(D)(J)(K)
---------- ----------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 11.58 $ 11.48
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.09) (0.11)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.25 0.21
---------- ----------
Total from Investment Operations............................ 1.16 0.10
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.64) --
---------- ----------
Total Distributions....................................... (0.64) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.10 $ 11.58
========== ==========
TOTAL RETURN (A)............................................ 10.21% 0.87%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $35 $8
Ratio of Expenses to Average Net Assets..................... 2.50% 2.93%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.62%) (1.84%)
Portfolio Turnover Rate..................................... 69% 149%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
70
<PAGE> 72
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
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
-------------------------------------------------
2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(E)
---------- ------- ---------- -------------
<S> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $24.05 $19.37 $17.99 $15.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.06) (0.05) -- 0.08
Net Gain (Loss) on Securities (realized and unrealized)..... 4.68 5.09 1.42 2.91
------- ------- ------ ------
Total from Investment Operations............................ 4.62 5.04 1.42 2.99
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- -- (0.04) --
Distributions (from Capital Gains).......................... (0.38) (0.36) -- --
------- ------- ------ ------
Total Distributions....................................... (0.38) (0.36) (0.04) --
------- ------- ------ ------
NET ASSET VALUE END OF PERIOD............................... $28.29 $24.05 $19.37 $17.99
======= ======= ====== ======
TOTAL RETURN (A)............................................ 19.37% 26.12% 7.89% 19.93%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $17,186 $13,403 $7,619 $6,209
Ratio of Expenses to Average Net Assets..................... 1.39% 1.42% 1.22% 0.67%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.47%) (0.22%) -- 0.57%
Portfolio Turnover Rate..................................... 32% 26% 41% 38%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--SOCIAL AWARENESS SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------
2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(E)
---------- ------- ---------- -------------
<S> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $23.35 $19.01 $17.81 $15.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.13) (0.30) (0.19) (0.08)
Net Gain (Loss) on Securities (realized and unrealized)..... 4.44 5.00 1.39 2.89
------- ------- ------ ------
Total from Investment Operations............................ 4.31 4.70 1.20 2.81
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- -- -- --
Distributions (from Capital Gains).......................... (0.38) (0.36) -- --
------- ------- ------ ------
Total Distributions....................................... (0.38) (0.36) -- --
------- ------- ------ ------
NET ASSET VALUE END OF PERIOD............................... $27.28 $23.35 $19.01 $17.81
======= ======= ====== ======
TOTAL RETURN (A)............................................ 18.62% 24.81% 6.74% 18.73%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $12,366 $9,136 $5,245 $3,641
Ratio of Expenses to Average Net Assets..................... 2.39% 2.51% 2.20% 1.84%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.48%) (1.30%) (0.98%) (0.60%)
Portfolio Turnover Rate..................................... 32% 26% 41% 38%
</TABLE>
--------------------------------------------------------------------------------
71
<PAGE> 73
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
c-------------------------------------------------------------------------------
SECURITY EQUITY FUND--SOCIAL AWARENESS SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(J)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $23.87 $24.47
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.16) (0.22)
Net Gain (Loss) on Securities (realized and unrealized)..... 4.53 (0.38)
------ ------
Total from Investment Operations............................ 4.37 (0.60)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.38) --
------ ------
Total Distributions....................................... (0.38) --
------ ------
NET ASSET VALUE END OF PERIOD............................... $27.86 $23.87
====== ======
TOTAL RETURN (A)............................................ 18.47% (2.45%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 587 $ 405
Ratio of Expenses to Average Net Assets..................... 2.56% 2.66%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.65%) (1.46%)
Portfolio Turnover Rate..................................... 32% 33%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
72
<PAGE> 74
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
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
-------------------------------------------------
2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(F)
---------- ------- ---------- -------------
<S> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $16.60 $12.07 $12.95 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.03) (0.07) (0.02) 0.05
Net Gain (Loss) on Securities (realized and unrealized)..... 3.02 4.65 (0.53) 2.90
------- ------- ------- ------
Total from Investment Operations............................ 2.99 4.58 (0.55) 2.95
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- -- (0.05) --
Distributions (from Capital Gains).......................... (0.70) (0.05) (0.28) --
------- ------- ------- ------
Total Distributions....................................... (0.70) (0.05) (0.33) --
------- ------- ------- ------
NET ASSET VALUE END OF PERIOD............................... $18.89 $16.60 $12.07 $12.95
======= ======= ======= ======
TOTAL RETURN (A)............................................ 18.76% 38.06% (4.31%) 29.50%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $27,386 $22,804 $10,901 $4,631
Ratio of Expenses to Average Net Assets..................... 1.14% 1.33% 1.27% 1.10%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.33%) (0.44%) (0.13%) 1.43%
Portfolio Turnover Rate..................................... 89% 79% 98% 35%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--VALUE SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------
2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(F)
---------- ------- ---------- -------------
<S> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $16.26 $11.94 $12.91 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.12) (0.22) (0.15) 0.01
Net Gain (Loss) on Securities (realized and unrealized)..... 2.95 4.59 (0.54) 2.90
------- ------- ------- ------
Total from Investment Operations............................ 2.83 4.37 (0.69) 2.91
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- -- -- --
Distributions (from Capital Gains).......................... (0.70) (0.05) (0.28) --
------- ------- ------- ------
Total Distributions....................................... (0.70) (0.05) (0.28) --
------- ------- ------- ------
NET ASSET VALUE END OF PERIOD............................... $18.39 $16.26 $11.94 $12.91
======= ======= ======= ======
TOTAL RETURN (A)............................................ 18.15% 36.71% (5.38%) 29.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $11,199 $9,682 $6,615 $3,572
Ratio of Expenses to Average Net Assets..................... 2.02% 2.37% 2.33% 2.26%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.22%) (1.50%) (1.19%) 0.27%
Portfolio Turnover Rate..................................... 89% 79% 98% 35%
</TABLE>
--------------------------------------------------------------------------------
73
<PAGE> 75
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
c-------------------------------------------------------------------------------
SECURITY EQUITY FUND--VALUE SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(J)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $16.51 $14.54
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.12) (0.13)
Net Gain (Loss) on Securities (realized and unrealized)..... 2.98 2.10
------ ------
Total from Investment Operations............................ 2.86 1.97
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.70) --
------ ------
Total Distributions....................................... (0.70) --
------ ------
NET ASSET VALUE END OF PERIOD............................... $18.67 $16.51
====== ======
TOTAL RETURN (A)............................................ 18.06% 13.55%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $1,800 $1,138
Ratio of Expenses to Average Net Assets..................... 2.13% 2.38%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.29%) (1.36%)
Portfolio Turnover Rate..................................... 89% 92%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
74
<PAGE> 76
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
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
------------------------------------------
2000(C)(D)(L) 1999(C)(D) 1998(C)(D)(H)
------------- ---------- -------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $12.98 $8.70 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.09) -- (0.03)
Net Gain (Loss) on Securities (realized and unrealized)..... 12.14 4.28 (1.26)
------- ------- -------
Total from Investment Operations............................ 12.05 4.28 (1.29)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- -- (0.01)
Distributions (from Capital Gains).......................... (0.46) -- --
------- ------- -------
Total Distributions....................................... (0.46) -- (0.01)
------- ------- -------
NET ASSET VALUE END OF PERIOD............................... $24.57 $12.98 $8.70
======= ======= =======
TOTAL RETURN (A)............................................ 94.27% 49.20% (12.95%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $40,994 $16,877 $2,677
Ratio of Expenses to Average Net Assets..................... 1.25% 0.49% 1.39%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.89%) 0.03% (0.35%)
Portfolio Turnover Rate..................................... 300% 361% 366%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND--SMALL COMPANY SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------
2000(C)(D)(L) 1999(C)(D) 1998(C)(D)(H)
------------- ---------- -------------
<S> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $12.69 $8.63 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.16) (0.14) (0.13)
Net Gain (Loss) on Securities (realized and unrealized)..... 11.82 4.20 (1.24)
Total from Investment Operations............................ 11.66 4.06 (1.37)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- -- --
Distributions (from Capital Gains).......................... (0.46) -- --
------- ------- -------
Total Distributions....................................... (0.46) -- --
------- ------- -------
NET ASSET VALUE END OF PERIOD............................... $23.89 $12.69 $8.63
======= ======= =======
TOTAL RETURN (A)............................................ 93.34% 47.05% (13.70%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $7,232 $2,430 $1,504
Ratio of Expenses to Average Net Assets..................... 2.18% 1.94% 2.38%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.78%) (1.41%) (1.34%)
Portfolio Turnover Rate..................................... 300% 361% 366%
</TABLE>
--------------------------------------------------------------------------------
75
<PAGE> 77
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
c-------------------------------------------------------------------------------
SECURITY EQUITY FUND--SMALL COMPANY SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------------
2000(C)(D)(L) 1999(C)(D)(J)
------------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $12.86 $11.16
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.18) (0.07)
Net Gain (Loss) on Securities (realized and unrealized)..... 12.08 1.77
------ ------
Total from Investment Operations............................ 11.90 1.70
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.46) --
------ ------
Total Distributions....................................... (0.46) --
------ ------
NET ASSET VALUE END OF PERIOD............................... $24.30 $12.86
====== ======
TOTAL RETURN (A)............................................ 93.98% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $2,965 $890
Ratio of Expenses to Average Net Assets..................... 2.15% 1.47%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.79%) (0.95%)
Portfolio Turnover Rate..................................... 300% 374%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
76
<PAGE> 78
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND--ENHANCED INDEX SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(I)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.04 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ -- 0.03
Net Gain (Loss) on Securities (realized and unrealized)..... 1.87 0.01
---------- ----------
Total from Investment Operations............................ 1.87 0.04
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.12) --
---------- ----------
Total Distributions....................................... (0.12) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 11.79 $ 10.04
========== ==========
TOTAL RETURN (A)............................................ 18.69% 0.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 8,664 $ 7,589
Ratio of Expenses to Average Net Assets..................... 1.42% 1.48%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... 0.04% 0.39%
Portfolio Turnover Rate..................................... 81% 68%
</TABLE>
--------------------------------------------------------------------------------
SECURITY EQUITY FUND -- ENHANCED INDEX SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(I)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $9.99 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.04) (0.02)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.86 0.01
---------- ----------
Total from Investment Operations............................ 1.82 (0.01)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.12) --
---------- ----------
Total Distributions....................................... (0.12) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $11.69 $ 9.99
========== ==========
TOTAL RETURN (A)............................................ 18.28% (0.10%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 11,873 $ 9,591
Ratio of Expenses to Average Net Assets..................... 2.15% 2.20%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.68%) (0.33%)
Portfolio Turnover Rate..................................... 81% 68%
</TABLE>
--------------------------------------------------------------------------------
77
<PAGE> 79
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND--ENHANCED INDEX SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
--------------------------
2000(D)(L) 1999(D)(I)(J)
---------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.03) (0.01)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.86 0.01
---------- ----------
Total from Investment Operations............................ 1.83 0.00
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.12) --
---------- ----------
Total Distributions....................................... (0.12) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 11.71 $ 10.00
========== ==========
TOTAL RETURN (A)............................................ 18.24% 0.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 6,629 $ 5,205
Ratio of Expenses to Average Net Assets..................... 2.06% 2.05%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.59%) (0.18)
Portfolio Turnover Rate..................................... 81% 68%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
78
<PAGE> 80
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND--INTERNATIONAL SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
--------------------------
2000(D)(L) 1999(C)(D)(I)
---------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.69 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.10) (0.03)
Net Gain (Loss) on Securities (realized and unrealized)..... 3.22 (0.28)
---------- ----------
Total from Investment Operations............................ 3.12 (0.31)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... -- --
---------- ----------
Total Distributions....................................... -- --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.81 $ 9.69
========== ==========
TOTAL RETURN (A)............................................ 32.20% (3.10%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 4,796 $ 2,928
Ratio of Expenses to Average Net Assets..................... 2.36% 2.50%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.71%) (0.41%)
Portfolio Turnover Rate..................................... 107% 115%
</TABLE>
--------------------------------------------------------------------------------
SELECT EQUITY FUND--INTERNATIONAL SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
--------------------------
2000(D)(L) 1999(C)(D)(I)
---------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.65 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.15) (0.07)
Net Gain (Loss) on Securities (realized and unrealized)..... 3.20 (0.28)
---------- ----------
Total from Investment Operations............................ 3.05 (0.35)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... -- --
---------- ----------
Total Distributions....................................... -- --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.70 $ 9.65
========== ==========
TOTAL RETURN (A)............................................ 31.61% (3.50%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 2,956 $ 2,028
Ratio of Expenses to Average Net Assets..................... 3.25% 3.19%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (2.61%) (1.09%)
Portfolio Turnover Rate..................................... 107% 115%
</TABLE>
--------------------------------------------------------------------------------
79
<PAGE> 81
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND--INTERNATIONAL SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------------
2000(D)(L) 1999(C)(D)(I)(J)
---------- ----------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.68 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.13) (0.04)
Net Gain (Loss) on Securities (realized and unrealized)..... 3.20 (0.28)
---------- ----------
Total from Investment Operations............................ 3.07 (0.32)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... -- --
---------- ----------
Total Distributions....................................... -- --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.75 $ 9.68
========== ==========
TOTAL RETURN (A)............................................ 31.72% (3.20%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 3,677 $ 2,493
Ratio of Expenses to Average Net Assets..................... 2.86% 2.78%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (2.22%) (0.71%)
Portfolio Turnover Rate..................................... 107% 115%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
80
<PAGE> 82
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT EQUITY FUND--SELECT 25 SERIES (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(I)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.53 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.04) (0.05)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.79 0.58
---------- ----------
Total from Investment Operations............................ 1.75 0.53
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... -- --
---------- ----------
Total Distributions....................................... -- --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.28 $ 10.53
========== ==========
TOTAL RETURN (A)............................................ 16.62% 5.30%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 21,331 $ 13,975
Ratio of Expenses to Average Net Assets..................... 1.35% 1.48%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (0.78%) (0.75%)
Portfolio Turnover Rate..................................... 103% 14%
</TABLE>
--------------------------------------------------------------------------------
SELECT EQUITY FUND--SELECT 25 SERIES (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(I)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.52 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.09) (0.09)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.77 0.61
---------- ----------
Total from Investment Operations............................ 1.68 0.52
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... -- --
Total Distributions................................... -- --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.20 $ 10.52
========== ==========
TOTAL RETURN (A)............................................ 15.97% 5.20%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 19,082 $ 12,938
Ratio of Expenses to Average Net Assets..................... 2.11% 2.19%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.54%) (1.47%)
Portfolio Turnover Rate..................................... 103% 14%
</TABLE>
--------------------------------------------------------------------------------
81
<PAGE> 83
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
c-------------------------------------------------------------------------------
SELECT EQUITY FUND--SELECT 25 SERIES (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
--------------------------
2000(D)(L) 1999(D)(I)(J)
---------- -------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.55 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.09) (0.09)
Net Gain (Loss) on Securities (realized and unrealized)..... 1.78 0.64
---------- ----------
Total from Investment Operations............................ 1.69 0.55
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... -- --
---------- ----------
Total Distributions....................................... -- --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 12.24 $ 10.55
========== ==========
TOTAL RETURN (A)............................................ 16.02% 5.50%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 6,480 $ 4,442
Ratio of Expenses to Average Net Assets..................... 2.08% 2.07%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.52%) (1.34%)
Portfolio Turnover Rate..................................... 103% 14%
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
82
<PAGE> 84
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY ULTRA FUND (CLASS A)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD....................... $9.19 $7.65 $9.24 $8.25 $8.20 $6.82
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (loss).............................. (0.04) (0.06) (0.06) (0.08) (0.05) (0.02)
Net Gain (Loss) on Securities (realized and unrealized)... 5.78 3.51 (1.06) 1.65 1.10 1.54
-------- ------- ------- ------- ------- -------
Total from Investment Operations.......................... 5.74 3.45 (1.12) 1.57 1.05 1.52
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................... -- -- -- -- -- --
Distributions (from Capital Gains)........................ (0.43) (1.91) (0.47) (0.58) (1.00) (0.14)
-------- ------- ------- ------- ------- -------
Total Distributions..................................... (0.43) (1.91) (0.47) (0.58) (1.00) (0.14)
-------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD............................. $14.50 $9.19 $7.65 $9.24 $8.25 $8.20
======== ======= ======= ======= ======= =======
TOTAL RETURN (A).................................... 64.00% 50.91% (12.45%) 20.57% 15.36% 22.69%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)...................... $173,621 $96,238 $67,554 $84,504 $74,230 $66,052
Ratio of Expenses to Average Net Assets................... 1.13% 1.21% 1.23% 1.71% 1.31% 1.32%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................. (0.61%) (0.77%) (0.64%) (1.01%) (0.61%) (0.31%)
Portfolio Turnover Rate................................... 45% 54% 116% 68% 161% 180%
</TABLE>
--------------------------------------------------------------------------------
SECURITY ULTRA FUND (CLASS B)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------
2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD....................... $8.54 $7.28 $8.90 $8.03 $8.11 $6.81
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (loss).............................. (0.09) (0.14) (0.14) (0.15) (0.13) (0.09)
Net Gain (Loss) on Securities (realized and unrealized)... 5.35 3.31 (1.01) 1.60 1.05 1.53
-------- ------- ------- ------- ------- -------
Total from Investment Operations.......................... 5.26 3.17 (1.15) 1.45 0.92 1.44
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).................... -- -- -- -- -- --
Distributions (from Capital Gains)........................ (0.43) (1.91) (0.47) (0.58) (1.00) (0.14)
-------- ------- ------- ------- ------- -------
Total Distributions..................................... (0.43) (1.91) (0.47) (0.58) (1.00) (0.14)
-------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD............................. $13.37 $8.54 $7.28 $8.90 $8.03 $8.11
======== ======= ======= ======= ======= =======
TOTAL RETURN (A).......................................... 63.23% 49.39% (13.30%) 19.58% 13.81% 21.53%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)...................... $26,305 $7,818 $5,610 $5,964 $2,698 $5,428
Ratio of Expenses to Average Net Assets................... 2.13% 2.21% 2.23% 2.71% 2.31% 2.32%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................. (1.61%) (1.77%) (1.64%) (2.01%) (1.61%) (1.31%)
Portfolio Turnover Rate................................... 45% 54% 116% 68% 161% 180%
</TABLE>
--------------------------------------------------------------------------------
83
<PAGE> 85
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SELECT ULTRA FUND (CLASS C)
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED
SEPTEMBER 30
-----------------------
2000(D)(L) 1999(D)(J)
---------- ----------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.11 $ 8.20
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)................................ (0.08) (0.07)
Net Gain (Loss) on Securities (realized and unrealized)..... 5.72 0.98
---------- ----------
Total from Investment Operations............................ 5.64 0.91
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income)...................... -- --
Distributions (from Capital Gains).......................... (0.43) --
---------- ----------
Total Distributions....................................... (0.43) --
---------- ----------
NET ASSET VALUE END OF PERIOD............................... $ 14.32 $ 9.11
========== ==========
TOTAL RETURN (A)............................................ 63.46% 11.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)........................ $ 1,325 $ 95
Ratio of Expenses to Average Net Assets..................... 2.13% 2.21%
Ratio of Net Investment Income (Loss) to Average Net
Assets.................................................... (1.61%) (1.75%)
Portfolio Turnover Rate..................................... 45% 54%
</TABLE>
(a) Total return information does not reflect deduction of any sales charges
imposed at the time of purchase for Class A shares or upon redemption for
Class B and C shares.
(b) 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:
<TABLE>
<CAPTION>
1995 1996 1997 1998 1999 2000
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Total Return Series Class A 3.6% 3.1% 2.4% 2.5% 2.3% N/A
Class B 4.7% 3.9% 3.3% 3.4% 3.2% N/A
Class C N/A N/A N/A N/A 3.2% N/A
Social Awareness
Series Class A N/A N/A 1.7% 1.5% N/A N/A
Class B N/A N/A 2.8% 2.5% N/A N/A
Value Series Class A N/A N/A 1.9% 1.5% N/A N/A
Class B N/A N/A 2.8% 2.6% N/A N/A
Small Company Series Class A N/A N/A N/A 2.4% 1.5% 1.5%
Class B N/A N/A N/A 3.4% 2.9% 2.4%
Class C N/A N/A N/A N/A 2.5% 2.4%
International Series Class A N/A N/A N/A N/A 4.7% 3.5%
Class B N/A N/A N/A N/A 5.4% 4.4%
Class C N/A N/A N/A N/A 5.0% 4.0%
</TABLE>
(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.
(l) Unaudited figures for the six months ended March 31, 2000. Percentage
amounts for the period, except total return, have been annualized.
--------------------------------------------------------------------------------
84
<PAGE> 86
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
MARCH 31, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
Security Growth and Income, Equity and Ultra Funds (the Funds) are
registered under the Investment Company Act of 1940, as amended, as diversified
open-end management investment companies. The shares of Security Equity Fund are
currently issued in multiple Series, with each Series, in effect, representing a
separate fund. Class A shares are sold with a sales charge at the time of
purchase. Class A shares are not subject to a sales charge when they are
redeemed, except that purchases of Class A shares of $1 million or more sold
without a front-end sales charge are subject to a contingent deferred sales
charge if redeemed within one year of purchase. The Funds began offering an
additional class of shares ("B" shares) to the public on October 19, 1993. The
shares are offered without a front-end sales charge but incur additional
class-specific expenses. Redemptions of the shares within five years of
acquisition incur a contingent deferred sales charge. The Funds began offering
an additional class of shares ("C" shares) to the public on January 29, 1999.
The shares are offered without a front-end sales charge but incur additional
class-specific expenses. Redemptions of the shares within one year of
acquisition incur a contingent deferred sales charge. The following is a summary
of the significant accounting policies followed by the Funds in the preparation
of their financial statements.
A. SECURITY VALUATION -- Securities listed or traded on a national
securities exchange are valued on the basis of the last sales price. If there
are no sales on a particular day, then the securities are valued at the last bid
price. If a security is traded on multiple exchanges, its value will be based on
prices from the principal exchange where it is traded. All other securities for
which market quotations are available are valued on the basis of the current bid
price. If there is no bid price or if the bid price is deemed to be
unsatisfactory by the Board of Directors or the Funds' investment manager, then
the securities are valued in good faith by such method as the Board of Directors
determines will reflect the fair market value. The Funds generally will value
short-term debt securities at prices based on market quotations for securities
of similar type, yield, quality and duration, except those securities purchased
with 60 days or less to maturity are valued on the basis of amortized cost which
approximates market value.
Generally, trading in foreign securities markets is substantially completed
each day at various times prior to the close of the New York Stock Exchange. The
values of foreign securities are determined as of the close of such foreign
markets or the close of the New York Stock Exchange, if earlier. All investments
quoted in foreign currency are valued in U.S. dollars on the basis of the
foreign currency exchange rates prevailing at the close of business. The Global
Series', 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 and
are reflected in the statement of operations. These contracts involve market
risk in excess of the amount reflected in the balance sheet. The face or
contract amount in U.S. dollars reflects the total exposure these funds have in
that particular currency contract. Losses may arise due to changes in the value
of the foreign currency or if the counterparty does not perform under the
contract.
D. FUTURES -- Growth & Income Fund, 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
--------------------------------------------------------------------------------
85
<PAGE> 87
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000
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 certain percentage of the contract value. Subsequent changes in the value
of the contract, or variation margin, are recorded as unrealized gains or
losses. The variation margin is paid or received in cash daily by the Funds. The
Funds realize a gain or loss when the contract is closed or expires.
E. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses are reported on an identified cost basis. Dividend income less
foreign taxes withheld (if any) plus foreign taxes recoverable (if any) are
recorded on the ex-dividend date. Interest income is recognized on the accrual
basis. Premium and discounts (except original issue discounts) on debt
securities are not amortized.
F. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are
recorded on the ex-dividend date. The character of distributions made during the
year from net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. These differences are
primarily due to differing treatments relating to the expiration of net
operating losses and the recharacterization of foreign currency gains and
losses.
G. TAXES -- The Funds complied with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distributed all of their
taxable net income and net realized gains sufficient to relieve them from all,
or substantially all, federal income, excise and state income taxes. Therefore,
no provision for federal or state income tax is required.
H. USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
2. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under terms of the investment advisory contract, Security Management
Company, LLC (SMC) agrees to provide, or arrange for others to provide, all the
services required by the Growth & Income Fund, Equity Series, Global Series, and
Ultra Fund for a single fee, including investment advisory services, transfer
agent services and certain other administrative services. For Growth and Income
Fund, Equity Series and Ultra Fund this fee is equal to 2% of the first $10
million of the average daily closing value of each Fund's net assets, 1 1/2% of
the next $20 million, and 1% of the remaining net assets of the Fund for the
fiscal year. For Global Series this fee is equal to 2% of the first $70 million
of the average daily closing value of the Series' net assets and 1 1/2% of the
remaining average net assets of the Series for the fiscal year. Additionally,
SMC agrees to assume all of the Funds' expenses, except for its fee and the
expenses of interest, taxes, brokerage commissions and extraordinary items and
Class B and Class C distribution fees. Management fees are payable to SMC under
an investment advisory contract at an annual rate of 0.75% of the average daily
net assets for Total Return, Enhanced Index and Select 25 Series, 1.00% for
Social Awareness, Value and Small Company Series, and 1.10% for International
Series.
SMC also acts as the administrative agent and transfer agent for the Funds,
and as such performs administrative functions, transfer agency and dividend
disbursing services, and the bookkeeping, accounting and pricing functions for
each Fund. For these services, the Investment Manager receives, from Total
Return Series, an administrative fee equal to .045% of the average daily net
assets of the Series plus, the greater of .10% of its average net assets or
$60,000. For the International Series, the administrative fee is equal to .045%
of the average daily net assets of the Series plus the greater of .10% of the
average net assets for (i) $30,000 for the year ended 1/31/00, (ii) $45,000 for
the year ended 1/31/01 and (iii) $60,000 for the year ended 1/31/02. For
administrative services provided to the Total Return Series, Social Awareness
Series, Value Series, Small Company Series, Enhanced Index Series and the Select
25 Series, SMC receives an administrative fee equal to .09% of the average daily
net assets of each Series. For transfer agent services, SMC is paid an annual
fixed charge per account as well as a transaction fee for all shareholder and
dividend payments, except from Growth and Income Fund Equity Series, Global
Series and Ultra Fund.
SMC pays OppenheimerFunds, Inc. 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:
<TABLE>
<CAPTION>
Combined Average Daily Net Assets Annual Fees
--------------------------------- -----------
<S> <C>
$0 to $300 Million.......................................... .35%
$300 Million to $750 Million................................ .30%
$750 Million or more........................................ .25%
</TABLE>
SMC pays Strong Capital Management, Inc. ("Strong") with respect to Small
Company Series, an annual fee based on the combined average net assets of the
Series and another fund managed by SMC, SBL Series X. The fee is equal to:
<TABLE>
<CAPTION>
Combined Average Daily Net Assets Annual Fees
--------------------------------- -----------
<S> <C>
Less Than $150 Million...................................... .50%
$150 Million to $500 Million................................ .45%
$500 Million or more........................................ .40%
</TABLE>
--------------------------------------------------------------------------------
86
<PAGE> 88
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000
Bankers Trust company furnishes investment advisory services to Enhanced
Index Series and International Series. For such services to the Enhanced Index
Series SMC pays Bankers trust an annual fee equal to a percentage of the average
daily closing value of the combined net assets of Enhanced Index Series and
another Fund, managed by SMC, SBL Series H as follows:
<TABLE>
<CAPTION>
Combined Average Daily Net Assets Annual Fees
--------------------------------- -----------
<S> <C>
$0 to $100 Million.......................................... .20%
$100 Million to $300 Million................................ .15%
$300 Million or more........................................ .13%
</TABLE>
SMC will also pay Bankers Trust the following minimum fees with respect to
the Enhanced Index Series: (i) no minimum fee in the first year the Enhanced
Index begins operations; and (ii) $100,000 in the Series' second year of
operations; and (iii) $200,000 in the third and following years of the Series'
operations. For the services provided to the International Series, SMC pays
Bankers Trust an annual fee equal to a percentage of the average daily closing
value of the combined net assets of International Series and another Fund
managed by SMC, SBL Series I, computed on a daily basis as follows:
<TABLE>
<CAPTION>
Combined Average Daily Net Assets Annual Fees
--------------------------------- -----------
<S> <C>
$0 to $200 Million.......................................... .60%
$200 Million or more........................................ .55%
</TABLE>
SMC has agreed to limit the total expenses of the Enhanced Index Series and
Select 25 Series to 1.75%, Total Return Series, Social Awareness Series, Value
Series, and the Small Company Series to 2.00%, and the International Series to
2.25%, in each case exclusive of interest, taxes, extraordinary expenses,
brokerage fees and commissions and 12b-1 fees. The expense limits other than
those for Enhanced Index, Select 25 and International Series are voluntary
limits which may be limited at any time without notice to shareholders. SMC
waived management fees for the Small Company Series through November 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 and Small Company, Enhanced Index, International and the Select 25 Series
have also adopted such a Plan with respect to their Class A Shares. The plans
provide for payments at an annual rate of 1.00% of the average daily net assets
of each Fund's Class B and Class C shares and 0.25% of the average daily net
assets of the Small Company, Enhanced Index, International and Select 25 Series
Class A shares. The Class A share 12b-1 fees of Small Company Series are not
currently being charged.
Security Distributors, Inc. (SDl), a wholly-owned subsidiary of Security
Benefit Group, Inc. and the national distributor of the Funds, received net
underwriting commissions on sales of Class A shares and contingent deferred
sales charges on redemptions occurring within 5 years of the date of purchase of
Class B shares and within 1 year of the date of purchase for Class C shares,
after allowances to brokers and dealers in the amounts presented in the
following table:
<TABLE>
<CAPTION>
SDI BROKER/ BROKER/ BROKER/
UNDERWRITING CDSC CDSC DEALER DEALER DEALER
(CLASS A) (CLASS B) (CLASS C) (CLASS A) (CLASS B) (CLASS C)
------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Growth & Income Fund:................................ $ 1,612 $ 13,850 $ 0 $ 24,282 $ 29,860 $ 2,564
Security Equity Fund:
Equity Series...................................... 32,845 183,336 9,852 429,869 681,523 48,189
Global Series...................................... 1,543 9,975 0 23,040 62,265 9,772
Total Return Series.................................. 101 1,850 0 2,380 5,225 116
Social Awareness Series............................ 1,284 4,027 22 59,851 56,284 879
Value Series....................................... 1,833 5,286 451 31,278 50,750 5,890
Small Company Series............................... 1,651 505 0 39,862 41,667 10,509
Enhanced Index Series.............................. 2,238 7,847 1,039 24,458 42,709 4,549
International Series............................... 268 489 51 4,517 5,855 2,426
Select 25 Series................................... 16,196 23,333 2,731 194,304 146,887 14,665
Security Ultra Fund:................................. 6,449 0 3,047 70,246 90,931 6,644
</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.
--------------------------------------------------------------------------------
87
<PAGE> 89
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000
3. FEDERAL UNREALIZED APPRECIATION/DEPRECIATION
For federal income tax purposes, the amounts of unrealized appreciation
(depreciation) at March 31, 2000, were as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Growth & Income Fund........................................ $ 4,638,584 ($2,600,026) $ 2,038,558
Security Equity Fund:
Equity Series............................................. 454,421,723 (23,322,822) 431,098,901
Global Series............................................. 23,625,731 (3,929,890) 19,695,841
Total Return Series....................................... 1,446,951 (379,227) 1,067,724
Social Awareness Series................................... 10,489,674 (836,335) 9,653,339
Value Series.............................................. 8,742,704 (3,293,415) 5,449,289
Small Company Series...................................... 14,097,222 (812,394) 13,284,828
Enhanced Index Series..................................... 4,871,210 (1,515,632) 3,355,578
International Series...................................... 2,939,827 (319,567) 2,620,260
Select 25 Series.......................................... 8,731,961 (803,269) 7,928,692
Security Ultra Fund......................................... 92,789,218 (8,520,925) 84,268,293
</TABLE>
4. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended March 31, 2000, (excluding
overnight investments and short-term commercial paper) are as follows:
<TABLE>
<CAPTION>
PROCEEDS
PURCHASES FROM SALES
--------- ----------
<S> <C> <C>
Growth & Income Fund........................................ $ 71,878,416 $ 82,067,533
Security Equity Fund:
Equity Series............................................. 370,261,946 414,478,643
Global Series............................................. 40,588,932 28,325,266
Total Return Series....................................... 2,604,709 2,803,708
Social Awareness Series................................... 7,457,728 4,162,266
Value Series.............................................. 15,835,709 15,433,653
Small Company Series...................................... 51,913,731 44,748,507
Enhanced Index Series..................................... 8,598,553 8,198,043
International Series...................................... 6,119,655 4,846,790
Select 25 Series.......................................... 27,455,397 19,016,406
Security Ultra Fund......................................... 53,021,249 32,354,113
</TABLE>
5. FORWARD FOREIGN EXCHANGE CONTRACTS
At March 31, 2000, 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 UNREALIZED
CONTRACTS SETTLEMENT FOREIGN CURRENCY AMOUNT TO BE U.S. $ VALUE APPRECIATION
TO BUY DATE TO BE DELIVERED IN U.S. $ PAID IN U.S. $ AS OF 03/31/00 (DEPRECIATION)
--------- ---------- ------------------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
International Series
British Pound............ 04/04/2000 35,000 $ 55,565 $ 55,636 $ 271
British Pound............ 04/05/2000 13,000 20,713 20,739 26
British Pound............ 04/14/2000 225,000 356,513 358,938 2,425
European Monetary Unit... 04/14/2000 371,669 360,011 355,865 (4,146)
European Monetary Unit... 05/06/2000 51,462 50,000 49,347 (653)
Japanese Yen............. 05/08/2000 10,636,000 100,000 104,384 4,384
Swiss Franc.............. 05/08/2000 165,090 100,000 99,649 (351)
--------
$ 1,956
========
</TABLE>
--------------------------------------------------------------------------------
88
<PAGE> 90
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000
<TABLE>
<CAPTION>
NET UNREALIZED
CONTRACTS SETTLEMENT FOREIGN CURRENCY AMOUNT TO BE U.S. $ VALUE APPRECIATION
TO SELL DATE TO BE DELIVERED IN U.S. $ PAID IN U.S. $ AS OF 03/31/00 (DEPRECIATION)
--------- ---------- ------------------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
International Series
Australian Dollar........ 05/08/2000 (82,153) $ (50,000) $ (49,844) $ 156
British Pound............ 04/14/2000 (125,055) (200,000) (199,497) 503
British Pound............ 05/08/2000 (31,669) (50,000) (50,520) (520)
European Monetary Unit... 04/14/2000 (371,669) (360,000) (355,866) 4,134
European Monetary Unit... 04/28/2000 (4,000) (3,867) (3,833) 34
Japanese Yen............. 04/14/2000 (38,144,256) (356,512) (372,642) (16,130)
New Zealand Dollar....... 05/06/2000 (102,642) (50,000) (50,948) (948)
Norwegian Kroner......... 05/06/2000 (418,190) (50,000) (49,575) 425
--------
$(12,346)
========
</TABLE>
6. OPEN FUTURE CONTRACTS
<TABLE>
<CAPTION>
NUMBER OF CONTRACT MARKET UNREALIZED
CURRENCY CONTRACTS EXPIRATION DATE AMOUNT VALUE GAIN/LOSS
-------- --------- --------------- -------- ------ ----------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL SERIES
NASDAQ 100 Index Future (Short)................... 2 6/15/2000 $869,007 $891,470 $22,463
</TABLE>
At March 31, 2000, the market value of assets pledged to cover margin
requirements for open contracts was $1,459,112.
<TABLE>
<S> <C> <C> <C> <C> <C>
ENHANCED INDEX SERIES
S&P 500 E-Mini Future............................ 1 6/15/2000 $ 78,256 $ 75,763 $ 2,493
S&P 500 Index Future............................. 9 6/15/2000 3,205,702 3,409,425 127,960
--------
$130,453
========
</TABLE>
At March 31, 2000, the market value of assets pledged to cover margin
requirements for open contracts was $5,789,659.
--------------------------------------------------------------------------------
89
<PAGE> 91
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
MARCH 31, 2000
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>
2000 2000 2000 2000 2000 2000
Shares Amount Shares Amount Shares Amount
Sold Sold Reinvested Reinvested Redeemed Redeemed
---------- ------------ ---------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Growth & Income Fund
Class A shares.................... 399,232 $ 2,681,072 334,927 $ 2,254,392 (1,232,676) $ (8,076,508)
Class B shares.................... 190,521 1,111,239 13,805 232,980 (343,765) (2,181,765)
Class C shares.................... 31,786 209,412 1,771 11,805 (26,291) (169,742)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 621,539 $ 4,001,723 350,503 $ 2,499,177 (1,602,732) $ (10,428,015)
========== ============ ========= =========== =========== =============
Equity Series
Class A shares.................... 6,558,875 $ 68,010,485 2,954,485 $30,481,412 (14,499,526) $(148,200,614)
Class B shares.................... 3,438,197 33,839,002 643,511 6,291,607 (4,760,279) (46,252,680)
Class C shares.................... 331,027 3,435,725 18,826 191,967 (331,999) (3,447,215)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 10,328,099 $105,285,212 3,616,822 $36,964,986 (19,591,804) $(197,900,509)
========== ============ ========= =========== =========== =============
Global Series
Class A shares.................... 803,382 $ 14,771,453 168,184 $ 2,757,048 (356,443) $ (5,567,214)
Class B shares.................... 767,841 13,447,168 126,914 1,989,122 (371,658) (5,485,864)
Class C shares.................... 53,295 986,245 1,681 27,302 (1,284) (22,855)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 1,624,518 $ 29,204,866 296,779 $ 4,773,472 (729,385) $ (11,075,933)
========== ============ ========= =========== =========== =============
Total Return Series
Class A shares.................... 13,576 $ 162,812 16,654 $ 196,239 (32,558) $ (385,910)
Class B shares.................... 25,818 307,171 17,284 200,891 (18,734) (215,186)
Class C shares.................... 2,152 25,327 59 692 0 0
---------- ------------ --------- ----------- ----------- -------------
Total........................... 41,546 $ 495,310 33,997 $ 397,822 (51,292) $ (601,096)
========== ============ ========= =========== =========== =============
Social Awareness Series
Class A shares.................... 121,319 $ 3,145,759 8,781 $ 225,141 (79,879) $ (2,059,674)
Class B shares.................... 69,761 1,749,311 6,210 154,141 (13,823) (347,642)
Class C shares.................... 4,399 111,921 286 7,240 (565) (14,580)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 195,479 $ 5,006,991 15,277 $ 386,522 (94,267) $ (2,421,896)
========== ============ ========= =========== =========== =============
Value Series
Class A shares.................... 230,039 $ 3,918,100 56,966 $ 907,177 (210,834) $ (3,504,021)
Class B shares.................... 92,487 1,539,990 24,287 377,784 (103,272) (1,655,301)
Class C shares.................... 28,614 487,828 2,976 47,000 (4,136) (66,099)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 351,142 $ 5,945,918 84,229 $ 1,331,961 (318,242) $ (5,225,421)
========== ============ ========= =========== =========== =============
Small Company Series
Class A shares.................... 407,483 $ 11,622,426 32,034 $ 561,850 (161,699) $ (2,674,814)
Class B shares.................... 240,478 5,271,091 2,531 43,257 (131,729) (1,854,272)
Class C shares.................... 58,484 1,209,783 2,240 38,867 (7,903) (157,423)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 796,445 $ 18,103,300 36,805 $ 643,974 (301,331) $ (4,686,509)
========== ============ ========= =========== =========== =============
Enhanced Index Series
Class A shares.................... 139,154 $ 1,509,666 7,667 $ 84,510 (167,841) $ (1,856,265)
Class B shares.................... 142,358 1,554,552 10,742 117,646 (98,054) (1,074,177)
Class C shares.................... 55,995 614,713 5,675 62,264 (15,792) (173,495)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 337,507 $ 3,678,931 24,084 $ 264,420 (281,687) $ (3,103,937)
========== ============ ========= =========== =========== =============
International Series
Class A shares.................... 79,181 $ 1,042,479 0 0 (6,773) $ (87,753)
Class B shares.................... 24,614 309,353 0 0 (1,918) (24,202)
Class C shares.................... 31,723 384,393 0 0 (1,038) (11,365)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 135,518 $ 1,736,225 0 $ 0 (9,729) $ (123,320)
========== ============ ========= =========== =========== =============
Select 25 Series
Class A shares.................... 795,064 $ 9,326,140 0 $ 0 (384,988) $ (4,475,302)
Class B shares.................... 538,186 6,249,754 0 0 (203,898) (2,369,601)
Class C shares.................... 228,570 2,661,248 0 0 (120,193) (1,405,153)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 1,561,820 $ 18,237,142 0 $ 0 (709,079) $ (8,250,056)
========== ============ ========= =========== =========== =============
Security Ultra Fund
Class A shares.................... 2,891,439 $ 34,605,354 411,423 $ 4,476,694 (1,808,126) $ (21,471,860)
Class B shares.................... 1,277,306 14,624,588 59,868 602,335 (285,495) (3,365,491)
Class C shares.................... 82,199 1,127,445 670 7,207 (755) (8,841)
---------- ------------ --------- ----------- ----------- -------------
Total........................... 4,250,944 $ 50,357,387 471,961 $ 5,086,236 (2,094,376) $ (24,846,192)
========== ============ ========= =========== =========== =============
<CAPTION>
2000 Total 2000 Total
Increase/Decrease Increase/Decrease
Shares Amount
----------------- -----------------
<S> <C> <C>
Growth & Income Fund
Class A shares.................... (498,517) $ (3,141,044)
Class B shares.................... (139,439) (837,546)
Class C shares.................... 7,266 51,475
---------- ------------
Total........................... (630,690) $ (3,927,115)
========== ============
Equity Series
Class A shares.................... (4,986,166) $(49,708,717)
Class B shares.................... (678,571) (6,122,071)
Class C shares.................... 17,854 180,477
---------- ------------
Total........................... (5,646,883) $(55,650,311)
========== ============
Global Series
Class A shares.................... 615,123 $ 11,961,287
Class B shares.................... 523,097 9,950,426
Class C shares.................... 53,692 990,692
---------- ------------
Total........................... 1,191,912 $ 22,902,405
========== ============
Total Return Series
Class A shares.................... (2,328) $ (26,859)
Class B shares.................... 24,368 292,876
Class C shares.................... 2,211 26,019
---------- ------------
Total........................... 24,251 $ 292,036
========== ============
Social Awareness Series
Class A shares.................... 50,221 $ 1,311,226
Class B shares.................... 62,148 1,555,810
Class C shares.................... 4,120 104,581
---------- ------------
Total........................... 116,489 $ 2,971,617
========== ============
Value Series
Class A shares.................... 76,171 $ 1,321,256
Class B shares.................... 13,502 262,473
Class C shares.................... 27,454 468,729
---------- ------------
Total........................... 117,127 $ 2,052,458
========== ============
Small Company Series
Class A shares.................... 367,818 $ 9,509,462
Class B shares.................... 111,280 3,460,077
Class C shares.................... 52,821 1,091,226
---------- ------------
Total........................... 531,919 $ 14,060,765
========== ============
Enhanced Index Series
Class A shares.................... (21,020) $ (262,089)
Class B shares.................... 55,046 598,021
Class C shares.................... 45,878 503,482
---------- ------------
Total........................... 79,904 $ 839,414
========== ============
International Series
Class A shares.................... 72,408 $ 954,726
Class B shares.................... 22,696 285,151
Class C shares.................... 30,685 373,028
---------- ------------
Total........................... 125,789 $ 1,612,905
========== ============
Select 25 Series
Class A shares.................... 410,076 $ 4,850,838
Class B shares.................... 334,288 3,880,153
Class C shares.................... 108,377 1,256,095
---------- ------------
Total........................... 852,741 $ 9,987,086
========== ============
Security Ultra Fund
Class A shares.................... 1,494,736 $ 17,610,188
Class B shares.................... 1,051,679 11,861,432
Class C shares.................... 82,114 1,125,811
---------- ------------
Total........................... 2,628,529 $ 30,597,431
========== ============
</TABLE>
--------------------------------------------------------------------------------
90
<PAGE> 92
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
c-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1999 1999 1999 1999 1999
Shares Amount Shares Amount Shares Amount
Sold Sold Reinvested Reinvested Redeemed Redeemed
---------- ------------ ---------- ----------- ----------- -------------
<S> <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)
Class B shares................... 383,324 2,857,782 247,855 1,670,300 (444,025) (3,216,919)
Class C shares................... 43,144 332,472 0 0 (1,433) (11,201)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 1,099,980 $ 8,337,428 2,046,943 $14,087,591 (2,439,916) $ (18,087,282)
========== ============ ========= =========== =========== =============
Equity Series
Class A shares................... 13,420,421 $132,649,509 6,045,433 $59,027,585 (14,665,109) $(147,063,933)
Class B shares................... 8,372,638 79,823,484 1,056,640 9,899,655 (5,823,017) (55,932,934)
Class C shares................... 466,193 4,768,942 0 0 (10,366) (105,580)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 22,259,252 $217,241,935 7,102,073 $68,927,240 (20,498,492) $(203,102,447)
========== ============ ========= =========== =========== =============
Global Series
Class A shares................... 695,668 $ 8,911,418 130,230 $ 1,583,863 (490,657) $ (6,276,602)
Class B shares................... 692,033 8,616,997 86,877 1,024,274 (407,260) (5,056,378)
Class C shares................... 14,520 197,823 0 0 0 0
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 1,402,221 $ 17,726,238 217,107 $ 2,608,137 (897,917) (11,332,980)
========== ============ ========= =========== =========== =============
Total Return Series
Class A shares................... 31,506 $ 368,718 24,537 $ 271,998 (56,089) $ (652,076)
Class B shares................... 27,410 315,455 21,691 239,384 (44,246) (505,377)
Class C shares................... 709 8,553 0 0 0 0
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 59,625 $ 692,726 46,228 $ 511,382 (100,335) $ (1,157,453)
========== ============ ========= =========== =========== =============
Social Awareness Series
Class A shares................... 306,741 $ 7,392,701 6,458 $ 147,295 (149,302) $ (3,600,362)
Class B shares................... 204,928 4,817,870 4,916 109,778 (94,506) (2,217,147)
Class C shares................... 16,960 418,879 0 0 (12) (303)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 528,629 $ 12,629,450 11,374 $ 257,073 (243,820) $ (5,817,812)
========== ============ ========= =========== =========== =============
Value Series
Class A shares................... 749,287 $ 11,366,515 3,927 $ 54,487 (283,023) $ (4,222,754)
Class B shares................... 177,704 2,663,313 2,087 28,595 (138,360) $ (1,970,978)
Class C shares................... 69,766 1,117,339 0 0 (822) (13,409)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 996,757 $ 15,147,167 6,014 $ 83,082 (422,205) $ (6,207,141)
========== ============ ========= =========== =========== =============
Small Company Series
Class A shares................... 1,039,226 $ 10,583,204 0 $ 0 (46,168) $ (479,808)
Class B shares................... 29,971 312,814 0 0 (12,838) (128,932)
Class C shares................... 69,336 738,707 0 0 (127) (1,457)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 1,138,533 $ 11,634,725 0 $ 0 (59,133) $ (610,197)
========== ============ ========= =========== =========== =============
Enhanced Index Series
Class A shares................... 814,143 $ 8,317,912 0 $ 0 (58,104) $ (609,377)
Class B shares................... 973,729 9,959,395 0 0 (13,517) (140,440)
Class C shares................... 521,068 5,288,712 0 0 (807) (8,246)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 2,308,940 $ 23,566,019 0 $ 0 (72,428) $ (758,063)
========== ============ ========= =========== =========== =============
International Series
Class A shares................... 307,889 $ 3,015,685 0 0 (5,768) $ (55,982)
Class B shares................... 210,293 2,081,770 0 0 (208) $ (2,000)
Class C shares................... 258,214 2,545,289 0 0 (609) $ (5,792)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 776,396 $ 7,642,744 0 $ 0 (6,585) $ (63,774)
========== ============ ========= =========== =========== =============
Select 25 Series
Class A shares................... 1,447,176 $ 14,845,141 0 $ 0 (120,570) $ (1,239,696)
Class B shares................... 1,278,626 13,090,317 0 0 (49,213) (515,290)
Class C shares................... 426,772 4,350,090 0 0 (5,870) (61,895)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 3,152,574 $ 32,285,548 0 $ 0 (175,653) $ (1,816,881)
========== ============ ========= =========== =========== =============
Security Ultra Fund
Class A shares................... 3,546,126 $ 30,558,438 2,215,618 $16,490,845 (4,118,483) $ (35,203,189)
Class B shares................... 881,272 7,056,830 280,843 1,958,316 (1,016,884) (7,863,259)
Class C shares................... 11,687 105,168 0 0 (1,234) (10,906)
---------- ------------ --------- ----------- ----------- -------------
Total.......................... 4,439,085 $ 37,720,436 2,496,461 $18,449,161 (5,136,601) $ (43,077,354)
========== ============ ========= =========== =========== =============
<CAPTION>
1999 1999
Increase/Decrease Increase/Decrease
Shares Amount
----------------- -----------------
<S> <C> <C>
Growth & Income Fund
Class A shares................... 478,142 $ 2,705,303
Class B shares................... 187,154 1,311,163
Class C shares................... 41,711 321,271
--------- -----------
Total.......................... 707,007 $ 4,337,737
========= ===========
Equity Series
Class A shares................... 4,800,745 $44,613,161
Class B shares................... 3,606,261 33,790,205
Class C shares................... 455,827 4,663,362
--------- -----------
Total.......................... 8,862,833 $83,066,728
========= ===========
Global Series
Class A shares................... 335,241 $ 4,218,679
Class B shares................... 371,650 4,584,893
Class C shares................... 14,520 197,823
--------- -----------
Total.......................... 721,411 $ 9,001,395
========= ===========
Total Return Series
Class A shares................... (46) $ (11,360)
Class B shares................... 4,855 49,462
Class C shares................... 709 8,553
--------- -----------
Total.......................... 5,518 $ 46,655
========= ===========
Social Awareness Series
Class A shares................... 163,896 $ 3,939,634
Class B shares................... 115,339 2,710,501
Class C shares................... 16,948 418,576
--------- -----------
Total.......................... 296,183 $ 7,068,711
========= ===========
Value Series
Class A shares................... 470,191 $ 7,198,248
Class B shares................... 41,431 720,930
Class C shares................... 68,944 1,103,930
--------- -----------
Total.......................... 580,566 $ 9,023,108
========= ===========
Small Company Series
Class A shares................... 993,058 $10,103,396
Class B shares................... 17,133 183,882
Class C shares................... 69,209 737,250
--------- -----------
Total.......................... 1,079,400 $11,024,528
========= ===========
Enhanced Index Series
Class A shares................... 756,039 $ 7,708,535
Class B shares................... 960,212 9,818,955
Class C shares................... 520,261 5,280,466
--------- -----------
Total.......................... 2,236,512 $22,807,956
========= ===========
International Series
Class A shares................... 302,121 $ 2,959,703
Class B shares................... 210,085 2,079,770
Class C shares................... 257,605 2,539,497
--------- -----------
Total.......................... 769,811 $ 7,578,970
========= ===========
Select 25 Series
Class A shares................... 1,326,606 $13,605,445
Class B shares................... 1,229,413 12,575,027
Class C shares................... 420,902 4,288,195
--------- -----------
Total.......................... 2,976,921 $30,468,667
========= ===========
Security Ultra Fund
Class A shares................... 1,643,261 $11,846,094
Class B shares................... 145,231 1,151,887
Class C shares................... 10,453 94,262
--------- -----------
Total.......................... 1,798,945 $13,092,243
========= ===========
</TABLE>
--------------------------------------------------------------------------------
91
<PAGE> 93
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
c-------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Six Months Fiscal Year
Ended 3/31/00 Ended 9/30/99
------------- -------------
<S> <C> <C>
Growth & Income Fund........................................ $ 150 $ 670
Equity Series............................................... 2,044 7,860
Total Return Series......................................... 14 54
Social Awareness Series..................................... 46 135
Value Series................................................ 59 183
Select 25 Series............................................ 63 90
Ultra Fund.................................................. 226 690
------ ------
$2,602 $9,682
====== ======
</TABLE>
9. OPTIONS WRITTEN
The following options written were outstanding for the International Series
for the period ended March 31, 2000:
Put Options Written
<TABLE>
<CAPTION>
Expiration Exercise Number of Market
Currency Date Price Contracts Value
-------- ---------- -------- --------- ------
<S> <C> <C> <C> <C>
British Sterling Pound...................................... 04/14/2000 1.55 250,000 $(130)
Japanese Yen................................................ 04/11/2000 111.50 300,000 (30)
Swiss Franc................................................. 04/14/2000 1.69 100,000 (350)
-----
Total put options outstanding (premiums received, $4,107)... $(510)
=====
</TABLE>
Call Options Written
<TABLE>
<CAPTION>
Expiration Exercise Number of Market
Currency Date Price Contracts Value
-------- ---------- -------- --------- --------
<S> <C> <C> <C> <C>
Japanese Yen................................................ 04/11/2000 106.00 300,000 $(10,800)
Swiss Franc................................................. 04/14/2000 1.59 100,000 (60)
--------
Total call options outstanding (premiums received,
$4,603)................................................... $(10,860)
========
</TABLE>
Transactions in options written for the International Series for the period
ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Call Options Written Number of Premium
Contracts Amount
--------- -------
<S> <C> <C>
Balance at Sept. 30, 1999................................... -- $ --
Opened...................................................... 1,048,064 6,828
Expired..................................................... (648,064) (2,295)
Exercised................................................... -- --
--------- ------
Balance at March 31, 2000................................... 400,000 $4,603
========= ======
</TABLE>
<TABLE>
<CAPTION>
Put Options Written Number of Premium
Contracts Amount
--------- -------
<S> <C> <C>
Balance at Sept. 30, 1999................................... -- $ --
Opened...................................................... 650,000 4,107
Expired..................................................... -- --
Exercised................................................... -- --
------- ------
Balance at March 31, 2000................................... 650,000 $4,107
======= ======
</TABLE>
--------------------------------------------------------------------------------
92
<PAGE> 94
THIS PAGE LEFT INTENTIONALLY BLANK
<PAGE> 95
THE SECURITY GROUP
OF MUTUAL FUNDS
Security Growth and Income Fund
Security Equity Fund
- Equity Series
- Global Series
- Total Return Series
- Social Awareness Series
- Value Series
- Small Company Series
- Enhanced Index Series
- International Series
- Select 25 Series
Security Ultra Fund
Security Income Fund
- Diversified Income Series
- High Yield Series
Security Municipal Bond Fund
Security Cash Fund
This report is submitted for the general information of the shareholders of the
Funds. The report is not authorized for distribution to prospective investors in
the Funds unless preceded or accompanied by an effective prospectus which
contains details concerning the sales charges and other pertinent information.
SECURITY FUNDS
OFFICERS AND DIRECTORS
DIRECTORS
Donald A. Chubb, Jr.
John D. Cleland
Penny A. Lumpkin
Mark L. Morris, Jr., D.V.M.
Maynard F. Oliverius
James R. Schmank
OFFICERS
John D. Cleland, Chairman of the Board
James R. Schmank, President
Terry A. Milberger, Vice President, Equity Fund
James P. Schier, Vice President, Equity and Ultra Fund
Cindy L. Shields, Vice President, Equity Fund
Amy J. Lee, Secretary
Christopher D. Swickard, Assistant Secretary
Brenda M. Harwood, Treasurer
www.securitybenefit.com
SECURITY DISTRIBUTORS, INC.
A Member of The Security Benefit
Group of Companies
[SECURITY DISTRIBUTORS, INC. LOGO]
700 SW Harrison St. Topeka, KS 66636-0001
PRESORTED
STANDARD
U.S. POSTAGE
PAID
CHICAGO, IL
PERMIT NO. 941
SDI 604A (R3-00) 46-06040-01
