<PAGE>
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RYDEX SERIES TRUST
[LOGO] SECTOR FUNDS
SEMI-ANNUAL REPORT
September 30, 1998
6116 Executive Boulevard, Suite 400
Rockville, MD 20852
(301) 468-8520 (800) 820-0888
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- --------------------------------------------------------------------------------
DEAR SECTOR FUND SHAREHOLDER,
We are pleased to present the first semi-annual report for the Rydex Sector
Funds. On April 1, 1998, Rydex implemented an ambitious and successful launch of
14 new funds representing different economic and industrial sectors of the
economy. The introduction of the sector funds was a result of listening to and
fulfilling our shareholders' need for flexible investment alternatives in
specific market segments. The response from our investors has been favorable, as
measured by continued asset growth, indicating that we have provided another
successful investment alternative for our clients.
EQUITY MARKET REVIEW
The U.S. stock market staged a powerful rally during the first half of 1998. The
advance continued briefly into the third quarter, until late July, when the
market, by most broad-based measures, had peaked. In dramatic fashion, the
market quickly retreated, giving back most of the year's gains, resulting in the
worst performing quarter for stocks since third quarter of 1990. Several
fundamental economic factors, highlighted briefly below, led to heightened
market volatility during the reporting period.
ECONOMIC REVIEW
In April, investors were struck with the realization that the economic and
political woes of Asia were not improving and could even become worse. Exports
to Asia and Europe contracted, the trade deficit grew, and investors became
concerned over the ability of corporations to sustain their earnings growth. In
June, Federal Reserve Chairman Alan Greenspan described the current economy as
the most impressive he has ever witnessed and warned that the potential for
inflation was still present. Investors interpreted the comments as a possibility
that the Fed would raise rates. Yet investors seemed more concerned with a
potential economic slowdown rather than the Fed's view that the economy may be
overheating. By early August, domestic, political and economic uncertainty,
coupled with the deepening global economic crisis, became too much for the
markets to bear. U.S. stocks came under severe selling pressure as investors
sought shelter from the global economic crisis that started in Asia, moved to
Russia, and began threatening several emerging markets in Latin America.
<PAGE>
The pullback culminated on August 31, when the Dow Jones Industrial Average
tumbled 512 points to post its second worst point loss in history, wiping out
all of the year's gains. Adding to the turmoil, the market had to face the
near-collapse of one of the country's largest hedge funds, Long Term Capital
Management. Taking note of the severe negative investor sentiment, Greenspan
indicated that the Fed must take action to contain the effects of the global
economic crisis on U.S. growth. U.S. stocks rose sharply in reaction to the
favorable comments. In an effort to alleviate further economic pressures, on
September 29 the Federal Reserve Board cut the federal funds rate by 0.25%. The
following day, investors expressed disappointment that the Fed didn't implement
a deeper cut in interest rates and once again, U.S. stocks plummeted, ending the
worst quarter for U.S. stocks in eight years.
SUMMARY
During the second and third quarter, investors endured economic uncertainty and
increased volatility in the equity markets. Although it is projected that this
environment is likely to continue, the economic fundamentals of lower interest
rates, benign inflation, high employment, and strong productivity are still in
place to support a strong stock market and provide investment opportunities
among various market segments. As always, we welcome your questions or comments
about the Rydex Funds. Feel free to contact us over the Internet via our web
site at WWW.RYDEXFUNDS.COM or call us at 800-820-0888.
Sincerely,
/s/ Albert P. Viragh, Jr.
Albert P. (Skip) Viragh
Chairman of the Board
2
<PAGE>
RYDEX SERIES TRUST
ENERGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
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<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
COMMON STOCKS 100%
Exxon Corporation* 47,262 $ 3,317,199
Mobil Corporation 30,160 2,290,275
British Petroleum-Sponsored ADR 24,968 2,178,458
Chevron Corporation 25,245 2,122,158
Amoco Corporation 37,224 2,005,443
Royal Dutch Petroleum-NY Shares 41,383 1,970,865
Enron Corporation 24,150 1,275,422
Schlumberger Limited 25,171 1,266,416
Texaco, Inc. 19,493 1,221,967
Atlantic Richfield Company 16,808 1,192,318
Halliburton Company 32,256 921,312
Phillips Petroleum Company 19,192 866,039
USX-Marathon Group 21,262 753,472
Unocal Corporation 17,748 643,365
Occidental Petroleum Corporation 27,006 580,629
Coastal Corporation 15,566 525,353
Burlington Resources, Inc. 13,020 486,623
Amerada Hess Corporation 6,719 387,602
Anadarko Petroleum Corporation 8,825 346,933
Vastar Resources, Inc. 7,154 321,930
Diamond Offshore Drilling, Inc. 10,243 266,318
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
Baker Hughes, Inc. 12,477 $ 261,239
Ashland, Inc. 5,585 258,306
Transocean Offshore, Inc. 7,375 255,820
Tosco Corporation 11,494 247,121
Sonat, Inc. 8,091 241,719
Union Pacific Resources Group 18,458 227,264
Sunoco, Inc. 6,943 222,176
Enron Oil & Gas Company 11,386 199,255
Apache Corporation 7,249 194,364
Kerr-McGee Corporation 3,509 159,660
Weatherford International, Inc.* 7,196 155,614
Ultramar Diamond Shamrock Corporation 6,633 150,901
R & B Falcon Corporation* 12,144 145,728
Noble Drilling Corporation* 9,656 142,426
Global Marine, Inc.* 12,708 140,582
Santa Fe International Corporation 8,786 135,085
Noble Affiliate, Inc.* 4,187 133,461
Murphy Oil Corporation 3,305 128,069
-----------
Total Common Stocks (Cost
$28,380,107) 28,338,887
-----------
Total Investments 100% (Cost
$28,380,107) $28,338,887
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
3
<PAGE>
RYDEX SERIES TRUST
FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
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September 30, 1998
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<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
----- ----------
<S> <C> <C>
COMMON STOCKS 100%
American International Group 3,676 $ 283,047
Fannie Mae 3,563 228,923
NationsBank Corporation* 3,353 179,386
First Union Corporation 3,451 176,648
Travelers Group, Inc.* 4,031 151,163
Citigroup 1,571 146,005
BankAmerica Corporation 2,382 143,218
Allstate Corporation 3,133 130,607
Chase Manhattan Corporation 2,975 128,669
American Express Company 1,598 124,045
Freddie Mac 2,357 116,524
Wells Fargo & Company 323 114,665
Bank One Corporation 2,677 114,107
Norwest Corporation 2,905 104,035
U.S. Bancorp 2,802 99,646
Morgan Stanley Dean Witter & Company 2,224 95,771
Associates First Capital-A 1,313 85,673
National City Corporation 1,249 82,356
Fleet Financial Group, Inc. 1,076 79,019
Bank Of New York Company, Inc. 2,836 77,636
First Chicago NDB Corporation 1,091 74,734
Household International, Inc. 1,868 70,050
Wachovia Corporation 782 66,666
Merrill Lynch & Company 1,316 62,346
American General Corporation 958 61,192
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
----- ----------
<S> <C> <C>
Fifth Third Bancorp 1,014 $ 58,305
J.P. Morgan & Company 670 56,699
Mellon Bank Corporation 987 54,347
MBNA Corporation 1,898 54,330
Cigna Corporation 804 53,165
PNC Bank Corporation 1,142 51,390
Washington Mutual, Inc. 1,469 49,579
SunTrust Banks, Inc. 791 49,042
Marsh & McLennan Companies, Inc. 969 48,208
KeyCorp 1,666 48,106
Hartford Financial Services Group 885 41,982
SunAmerica, Inc. 680 41,480
AON Corporation 639 41,216
Charles Schwab Corporation 1,011 39,808
Chubb Corporation 627 39,501
Aetna, Inc. 547 38,017
BankBoston Corporation 1,114 36,762
Loews Corporation 434 36,619
Conseco, Inc. 1,183 36,155
Equitable Companies, Inc. 845 34,962
----------
Total Common Stocks (Cost
$3,872,482) 3,905,804
----------
Total Investments 100% (Cost
$3,872,482) $3,905,804
----------
----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
4
<PAGE>
RYDEX SERIES TRUST
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
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<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 99.3%
Merck & Company, Inc. 19,730 $ 2,556,268
Pfizer, Inc. 23,209 2,458,703
Johnson & Johnson 22,324 1,746,853
Bristol - Myers Squibb Company 16,511 1,715,080
Eli Lilly & Company 18,281 1,431,631
Schering-Plough Corporation 12,184 1,261,806
Abbott Laboratories 24,637 1,070,170
Glaxo Welcome PLC-Sponsored ADR 18,270 1,043,674
Warner Lambert Company 13,607 1,027,329
American Home Products Corporation 19,149 1,002,929
Medtronic, Inc. 13,640 789,415
Pharmacia & Upjohn, Inc. 14,765 741,018
SmithKline Beecham PLC-- Sponsored
ADR 11,317 619,606
Baxter International, Inc. 8,294 493,493
Cardinal Health, Inc. 3,876 400,197
Columbia HCA Healthcare Corporation 18,145 364,034
Guidant Corporation 4,382 325,364
Becton Dickinson & Company 7,161 294,496
Boston Scientific Corporation* 5,716 293,660
Tenet HealthCare Corporation* 8,991 258,491
Mckesson Corporation 2,761 252,977
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
United Healthcare Corporation 5,677 198,695
Health Management Associates,
Inc.--A* 7,299 $ 133,207
Watson Pharmaceuticals, Inc.* 2,595 131,695
HealthSouth Corporation* 12,209 128,958
Biomet, Inc. 3,259 113,047
Wellpoint Health Networks* 2,014 112,910
Allergan, Inc. 1,899 110,854
Alza Corporation* 2,517 109,175
Mylan Laboratories, Inc. 3,557 104,932
Depuy, Inc. 2,873 100,555
Hillenbrand Industries 1,963 96,187
Stryker Corporation 2,799 95,165
US Surgical Corporation 2,242 93,463
Omnicare, Inc. 2,598 91,580
Forest Laboratories, Inc.* 2,345 80,609
Humana, Inc. 4,852 79,452
Manor Care, Inc. 2,704 79,261
Bergen Brunswig Corporation--Class A 1,469 74,276
Sofamor Danek Group, Inc.* 777 69,153
Aterial Vascular Engineer* 1,865 69,005
PacifiCare Health Systems-- B 902 67,198
Lincare Holdings, Inc.* 1,688 65,410
Bausch & Lomb, Inc. 1,605 63,197
C.R. Bard, Inc. 1,631 60,143
-----------
Total Common Stocks
(Cost $20,475,478) 22,475,321
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
5
<PAGE>
RYDEX SERIES TRUST
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
-------- -----------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.7%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
5.40% due 10/01/98 (Note 2) $ 76,084 $ 76,084
5.45% due 10/01/98 (Note 2) 152,168 152,168
5.50% due 10/01/98 (Note 2) 71,748 71,748
-----------
Total Repurchase Agreements (Cost
$300,000) 300,000
-----------
Total Investments 100% (Cost
$20,775,478) $22,775,321
-----------
-----------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
RYDEX SERIES TRUST
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
COMMON STOCKS 99.0%
Microsoft Corporation* 38,737 $ 4,263,491
Intel Corporation 39,865 3,418,424
International Business Machines
Corporation 24,908 3,188,224
Cisco Systems, Inc.* 46,635 2,882,626
Lucent Technologies, Inc. 37,482 2,588,600
Dell Computer Corporation* 38,192 2,511,124
Compaq Computer Corporation 58,616 1,853,731
Hewlett-Packard Company 31,263 1,654,985
EMC Corporation 19,920 1,139,175
Oracle Corporation* 38,868 1,132,031
Motorola, Inc. 23,852 1,018,182
America Online, Inc.* 8,622 959,198
Automatic Data Processing 12,004 897,299
Computer Associates International,
Inc. 22,384 828,208
Texas Instruments, Inc. 15,558 820,685
Sun Microsystems, Inc.* 15,107 752,517
Electronic Data System Corporation 19,629 651,437
BMC Software, Inc.* 8,594 516,177
YAHOO!, Inc.* 3,741 484,460
3COM Corporation* 14,312 430,255
Compuware Corporation* 7,305 430,082
First Data Corporation 17,840 419,240
Applied Materials, Inc.* 14,682 370,721
Ascend Communications, Inc.* 7,897 359,313
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
Computer Sciences Corporation* 6,306 $ 343,677
Paychex, Inc. 6,522 336,291
Gateway 2000, Inc.* 6,220 324,218
Peoplesoft, Inc.* 9,202 300,215
Tellabs, Inc.* 7,289 290,193
Micron Technology, Inc. 8,513 259,114
Seagate Technology, Inc.* 9,772 244,910
Unisys Corporation 10,154 231,004
Solectron Corporation* 4,673 224,304
Cadence Design Systems, Inc.* 8,477 216,693
Apple Computer, Inc. 5,376 204,960
Network Associates, Inc.* 5,191 184,281
Novell, Inc.* 14,047 172,076
Ceridian Corporation 2,897 166,215
AMP, Inc. 4,364 156,013
Linear Technology Corporation 3,069 153,450
FISERV, Inc.* 3,272 150,716
Maxim Integrated Products, Inc.* 5,237 145,981
Loral Space & Communications Limited* 9,702 143,105
Altera Corporation* 3,885 136,460
Newbridge Networks Corporation* 4,886 87,643
-----------
Total Common Stocks
(Cost $34,426,709) 38,041,704
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
7
<PAGE>
RYDEX SERIES TRUST
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
----------- ----------
<S> <C> <C>
REPURCHASE AGREEMENTS 1.0%
Repurchase Agreements Collateralized by U.S.
Treasury Obligations:
5.40% due 10/01/98 (Note 2) $ 101,446 $ 101,446
5.45% due 10/01/98 (Note 2) 202,891 202,891
5.50% due 10/01/98 (Note 2) 95,663 95,663
----------
Total Repurchase Agreements (Cost $400,000) 400,000
----------
Total Investments 100% (Cost $34,826,709) $38,441,704
----------
----------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
RYDEX SERIES TRUST
BASIC MATERIALS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ----------
<S> <C> <C>
COMMON STOCKS 100%
E.I. Dupont De Nemours & Company 7,612 $ 427,224
Monsanto Company 5,687 320,605
Dow Chemical Company 3,023 258,278
International Paper Company 4,129 192,515
Aluminum Company of America 2,284 162,163
PPG Industries, Inc. 2,663 145,300
Weyerhaeuser Company 2,988 126,056
Barrick Gold Corporation 5,642 112,840
Fort James Corporation 3,310 108,609
Air Products and Chemicals, Inc. 3,227 96,003
Union Carbide Corporation 2,045 88,191
Imperial Chemical Industries
PLC--Sponsored ADR 2,730 86,678
Alcan Aluminium Limited 3,416 80,063
Praxair, Inc. 2,370 77,469
Rohm & Haas Company 2,733 76,012
Newmont Gold Company 2,507 64,085
Georgia-Pacific Corporation 1,379 62,917
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ----------
<S> <C> <C>
Eastman Chemical Company 1,186 $ 59,819
Newmont Mining Corporation 2,351 57,012
Sherwin-Williams Company 2,606 56,355
Reynolds Metals Company 1,081 54,928
British Steel PLC--Sponsored ADR 2,975 54,108
Nucor Corporation 1,322 53,706
Allegheny Teledyne, Inc. 2,953 52,600
Placer Dome, Inc. 3,755 51,866
Willamette Industries, Inc. 1,673 47,994
Phelps Dodge Corporation 882 46,029
Mead Corporation 1,563 46,011
Champion International Corporation 1,446 45,277
Arco Chemical Company 40 2,308
----------
Total Common Stocks
(Cost $3,171,947) 3,113,021
----------
Total Investments 100% (Cost
$3,171,947) $3,113,021
----------
----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
9
<PAGE>
RYDEX SERIES TRUST
CONSUMER PRODUCTS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ---------
<S> <C> <C>
COMMON STOCKS 100%
Proctor & Gamble Company 362 $ 25,677
Gillette Company 488 18,666
Unilever NV--NY Shares 218 13,353
Kimberly-Clark Corporation 299 12,110
Colgate-Palmolive Company 160 10,960
Clorox Company 100 8,250
Omnicom Group 164 7,380
Interpublic Group Companies, Inc. 132 7,120
Newell Company 154 7,094
Nike, Inc.--Class B 179 6,589
Avery Dennison Corporation 114 4,980
Cintas Corporation 95 4,762
Maytag Corporation 92 4,393
VF Corporation 118 4,381
Leggett & Platt, Inc. 188 3,901
Black & Decker Corporation 92 3,830
Rubbermaid, Inc. 145 3,471
Outdoor Systems, Inc. 176 3,432
Whirlpool Corporation 73 3,431
International Flavors & Fragrances,
Inc. 103 3,399
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ---------
<S> <C> <C>
Estee Lauder Companies-- Class A 60 $ 3,075
American Greetings Corporation--
Class A 65 2,572
Tech Data Corporation* 47 2,353
Jones Apparel Group, Inc.* 97 2,225
Gucci Group NV--NY Regular Shares 58 2,095
Dial Corporation 99 2,042
Clayton Homes, Inc. 116 2,030
Snyder Communications, Inc. 59 1,977
Shaw Industries, Inc. 117 1,901
Tommy Hilfiger Corporation* 45 1,845
Herman Miller, Inc. 87 1,718
Premark International, Inc. 60 1,684
---------
Total Common Stocks
(Cost $186,718) 182,696
---------
Total Investments 100%
(Cost $186,718) $ 182,696
---------
---------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
10
<PAGE>
RYDEX SERIES TRUST
LEISURE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ---------
<S> <C> <C>
COMMON STOCKS 100%
Time Warner, Inc. 269 $ 23,554
Philip Morris Companies, Inc. 492 22,663
McDonalds Corporation 340 20,294
The Walt Disney Company 747 18,908
Anheuser-Busch Companies, Inc. 241 13,014
Carnival Corporation 309 9,830
Tele-Communications Group A 244 9,547
CBS Corporation 372 9,021
Comcast Corporation--Special Class A 172 8,073
Gannett Company 149 7,980
Cox Communications, Inc.-- Class A 135 7,374
Clear Channel Communications, Inc. 127 6,033
Seagram Company Limited 181 5,192
RJR Nabisco Holdings Corporation 171 4,307
Mattel, Inc. 152 4,256
McGraw Hill Company, Inc. 51 4,042
Cendant Corporation 293 3,406
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ---------
<S> <C> <C>
Marriott International, Inc.-- Class
A 134 $ 3,199
Tribune Company 63 3,170
Tricon Global Restaurants 79 3,081
UST, Inc. 97 2,868
New York Times Company-- Class A 99 2,723
R.R. Donnelley & Sons Company 75 2,639
Gallaher Group PLC-Sponsored ADR 89 2,614
Chancellor Media Corporation* 74 2,470
Dun & Bradstreet Corporation 89 2,403
Harley-Davidson, Inc. 79 2,321
Royal Caribbean Cruises Limited 86 2,284
Viacom, Inc.--Class A 36 2,070
Washington Post--Class B 4 2,044
---------
Total Common Stocks
(Cost $195,456) 211,380
---------
Total Investments 100%
(Cost $195,456) $ 211,380
---------
---------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
11
<PAGE>
RYDEX SERIES TRUST
RETAILING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
COMMON STOCKS 100%
Wal-Mart Stores, Inc.* 2,516 $137,437
Home Depot, Inc. 3,135 123,833
McDonald's Corporation 1,546 92,277
Walgreen Company 1,248 54,990
Gap, Inc. 986 52,011
Sears, Roebuck & Company 984 43,481
CVS Corporation 976 42,761
Dayton Hudson Corporation 1,102 39,396
May Department Stores Company 580 29,870
J.C. Penney Company, Inc. 635 28,535
Lowe's Companies, Inc. 883 28,090
Costco Companies, Inc.* 543 25,725
Rite Aid Corporation 648 23,004
Staples, Inc.* 711 20,886
Federated Department Stores, Inc.* 529 19,242
Kohl's Corporation* 398 15,522
Tricon Global Restaurants, Inc.* 383 14,937
Kmart Corporation 1,235 14,743
TJX Companies, Inc. 796 14,179
Dollar General Corporation 524 13,958
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
Amazon.com, Inc.* 125 $ 13,953
Tandy Corporation 252 13,482
Limited, Inc. 572 12,548
Toys "R" Us, Inc.* 692 11,202
Best Buy Company, Inc.* 252 10,458
AutoZone, Inc.* 383 9,431
Nordstrom, Inc. 373 9,232
Office Depot, Inc.* 401 8,997
Circuit City Stores--Circuit City
Group 251 8,361
Bed Bath & Beyond, Inc.* 351 8,205
Starbucks Corporation* 224 8,106
Dillard's, Inc.--Class A 268 7,588
Wendy's International, Inc. 319 7,078
Family Dollar Stores, Inc. 432 6,804
Harcourt General, Inc. 128 6,192
--------
Total Common Stocks (Cost $892,020) 976,514
--------
Total Investments 100% (Cost
$892,020) $976,514
--------
--------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
12
<PAGE>
RYDEX SERIES TRUST
TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ----------
<S> <C> <C>
COMMON STOCKS 100%
AT&T Corporation 9,825 $ 574,146
Lucent Technologies, Inc. 7,152 493,935
SBC Communications, Inc. 9,993 444,064
Bell Atlantic Corporation 8,438 408,716
Bellsouth Corporation 5,350 402,588
MCI Worldcom, Inc.* 6,993 341,776
GTE Corporation 4,894 269,170
Ameritech Corporation 5,596 265,111
Nokia Corporation--Sponsored ADR
Class A 3,323 260,648
Vodafone Group PLC-- Sponsored ADR 2,242 252,786
Ericsson (LM) Tel--Sponsored ADR 12,981 238,526
Airtouch Communications, Inc.* 4,162 237,234
U.S. West, Inc. 3,638 190,768
Sprint Corporation 2,493 179,496
Cable & Wireless PLC Sponsored ADR 5,794 157,162
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ----------
<S> <C> <C>
British Telecomm PLC-- Sponsored ADR 1,170 $ 155,683
BCE, Inc. 4,543 126,920
Northern Telecomm Limited 3,828 122,496
Alcatel SA 5,866 99,722
Telefonos De Mexico-- Sponsored ADR
(L) 2,095 92,704
QWEST Communications International* 2,401 75,181
Alltel Corporation 1,337 63,340
Tellabs, Inc.* 1,324 52,712
Panamsat Corporation* 1,082 44,430
Nextel Communications, Inc.--
Class A* 1,937 39,103
----------
Total Common Stocks (Cost
$5,530,400) 5,588,417
----------
Total Investments 100% (Cost
$5,530,400) $5,588,417
----------
----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
13
<PAGE>
RYDEX SERIES TRUST
TRANSPORTATION FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ---------
<S> <C> <C>
COMMON STOCKS 100%
Burlington Northern Santa Fe
Corporation 503 $ 16,093
AMR Corporation 276 15,301
Norfolk Southern Corporation 432 12,555
Goodyear Tire & Rubber Company 239 12,279
Union Pacific Corporation 282 12,020
Delta Air Lines, Inc. 115 11,184
CSX Corporation 248 10,432
Southwest Airlines 510 10,190
FDX Corporation* 224 10,108
Dana Corporation 252 9,393
TRW, Inc. 187 8,298
Genuine Parts Company 272 8,177
US Airways Group, Inc. 153 7,746
Magna International, Inc.--Class A 107 6,219
Kansas City Southern Industry 166 5,810
Canadian National Railway Company 129 5,757
UAL Corporation 88 5,704
Paccar, Inc. 119 4,901
Lear Corporation* 102 4,463
Federal-Mogul Corporation 85 3,974
Northwest Airlines Corporation* 149 3,734
Comair Holdings, Inc. 101 2,904
GATX Corporation 75 2,480
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ---------
<S> <C> <C>
Cooper Tire & Rubber Company 120 $ 2,160
CNF Transportation, Inc. 73 2,126
Navistar International Corporation 72 1,629
Asa Holdings, Inc. 45 1,598
Newport News ShipBuilding, Inc. 53 1,421
Tower Automotive, Inc.* 71 1,402
Arvin Industries, Inc. 37 1,378
Airborne Freight Corporation 77 1,333
Borg-Warner Automotive, Inc.* 35 1,297
Werner Enterprises, Inc. 73 1,150
Swift Transporation Company, Inc.* 65 1,129
Wisconsin Central Transportation
Corporation* 78 1,092
Alaska Airgroup, Inc.* 31 1,056
Expeditors International Washington,
Inc. 37 1,027
Coach Usa, Inc.* 40 988
Atlas Air, Inc.* 34 975
America West Holdings Corporation--B* 68 850
---------
Total Common Stocks (Cost $203,314) 212,333
---------
Total Investments 100% (Cost
$203,314) $ 212,333
---------
---------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
14
<PAGE>
RYDEX SERIES TRUST
ENERGY SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
COMMON STOCKS 99.1%
Schlumberger Limited 43,651 $ 2,196,191
Halliburton Company 63,433 1,811,805
Diamond Offshore Drilling 27,977 727,402
Baker Hughes, Inc. 27,262 570,811
Transocean Offshore, Inc. 16,114 558,954
Weatherford International* 19,654 425,017
R & B Falcon Corporation* 33,167 398,004
Noble Drilling Corporation* 26,374 389,016
Global Marine, Inc. 34,710 383,979
McDermott International, Inc. 12,191 328,395
Nabors Industries, Inc.* 20,248 310,048
Ensco International, Inc. 28,570 308,913
Cooper Cameron Corporation* 10,546 296,606
Smith International, Inc. 9,687 265,787
BJ Services Company 15,336 249,210
Tidewater, Inc. 11,947 247,900
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
Global Industries Limited* 18,451 $ 213,340
Helmerich and Payne, Inc. 10,099 212,079
Methanex Corporation* 36,049 198,270
Rowan Companies, Inc. 17,459 195,323
Eastern Enterprises 4,101 172,755
National-Oilwell, Inc. 10,369 128,316
Marine Drilling Company, Inc. 10,489 120,624
Seacor Smit, Inc. 2,652 110,058
Varco International, Inc. 12,937 108,347
Tuboscope, Inc.* 8,916 103,648
Houston Exploration Company* 4,797 93,542
Newpark Resources, Inc.* 13,186 90,654
Pride International, Inc.* 10,055 80,440
-----------
Total Common Stocks (Cost
$10,965,460) 11,295,434
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
15
<PAGE>
RYDEX SERIES TRUST
ENERGY SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
------- -----------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
5.40% due 10/01/98 (Note 2) $25,361 $ 25,361
5.45% due 10/01/98 (Note 2) 50,723 50,723
5.50% due 10/01/98 (Note 2) 23,916 23,916
-----------
Total Repurchase Agreements (Cost
$100,000) 100,000
-----------
Total Investments 100% (Cost
$11,065,460) $11,395,434
-----------
-----------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
RYDEX SERIES TRUST
BANKING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ----------
<S> <C> <C>
COMMON STOCKS 100%
NationsBank Corporation* 1,936 $ 103,576
First Union Corporation 1,988 101,761
Citigroup, Inc. 907 84,294
BankAmerica Corporation 1,374 82,612
Chase Manhattan Corporation 1,718 74,304
Wells Fargo & Company 171 60,704
Bank One Corporation 1,416 60,357
Norwest Corporation 1,539 55,115
U.S. Bancorp 1,487 52,881
National City Corporation 661 43,585
Fleet Financial Group, Inc. 570 41,859
Bank of New York Company, Inc. 1,502 41,117
First Chicago NBD Corporation 578 39,593
Wachovia Corporation 415 35,379
Fifth Third Bancorp 538 30,935
J. P. Morgan & Company 354 29,957
Mellon Bank Corporation 524 28,853
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ ----------
<S> <C> <C>
PNC Bank Corporation 606 $ 27,270
Washington Mutual, Inc. 778 26,258
Suntrust Banks, Inc. 420 26,040
Keycorp 884 25,526
BankBoston Corporation 591 19,503
State Street Corporation 325 17,733
BB&T Corporation 575 17,214
Comerica, Inc. 312 17,129
Regions Financial Corporation 430 15,588
Northern Trust Corporation 224 15,288
Firstar Corporation 293 14,833
Mercantile Bancorporation 305 14,754
Summit Bancorp 349 13,088
----------
Total Common Stocks (Cost
$1,183,503) 1,217,106
----------
Total Investments 100% (Cost
$1,183,503) $1,217,106
----------
----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements.
17
<PAGE>
RYDEX SERIES TRUST
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS 99.4%
Amgen, Inc.* 113,702 $ 8,591,654
Genentech, Inc.--Special Common* 73,477 5,281,159
Biogen, Inc.* 58,636 3,858,982
Chiron Corporation* 141,558 2,813,465
Genzyme Corporation-- General
Division* 58,925 2,128,666
MedImmune, Inc.* 26,413 1,710,242
BioChem Pharma, Inc.* 86,828 1,595,465
Centocor, Inc.* 38,837 1,538,916
Immunex Corporation* 23,862 1,321,358
Agouron Pharmaceuticals, Inc.* 31,067 1,069,870
Pioneer Hi-Bred International, Inc. 36,788 965,685
ICOS Corporation* 40,283 715,023
Human Genome Sciences, Inc.* 22,248 667,440
Gilead Sciences, Inc.* 30,298 655,194
Serologicals Corporation* 23,939 601,455
Affymetric, Inc.* 22,782 586,637
Vertex Pharmaceuticals, Inc.* 25,164 578,772
Incyte Pharmaceuticals, Inc.* 26,506 563,252
Andrx Corporation* 15,074 553,970
PathoGenesis Corporation* 16,162 539,407
Genset-Sponsored ADR* 20,189 519,867
Millennium Pharmaceuticals, Inc.* 29,373 510,356
IDEC Pharmaceuticals Corporation* 19,759 469,276
Transkaryotic Therapies, Inc.* 18,955 454,920
Protein Design Labs, Inc.* 18,418 442,032
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
Inhale Therapeutic Systems, Inc.* 15,593 $ 436,604
Coulter Pharmaceutical, Inc.* 15,537 386,483
Algos Pharmaceuticals Corporation* 15,922 368,196
Ligand Pharmaceuticals, Inc.--Class
B* 39,076 356,568
GelTex Pharmaceutical, Inc.* 16,622 351,140
Gensia Sicor, Inc.* 79,013 320,990
Bio-Technology General Corporation* 47,965 317,768
Triangle Pharmaceuticals, Inc.* 23,908 316,781
EntreMed, Inc.* 12,896 311,116
Organogenesis, Inc.* 29,344 306,278
Alkermes, Inc.* 20,992 305,696
SEQUUS Pharmaceuticals, Inc.* 31,441 304,585
Isis Pharmaceuticals, Inc.* 26,747 304,247
Immune Response Corporation* 23,060 265,190
Aviron* 15,602 240,856
Neurogen Corporation* 14,341 236,626
Scios, Inc.* 38,141 216,927
Liposome Company, Inc.* 37,791 214,936
Regeneron Pharmaceutical* 27,212 209,192
SUGEN, Inc.* 16,069 208,897
Cephalon, Inc.* 28,461 208,121
Enzon, Inc.* 31,140 206,302
Pharmacyclics, Inc.* 12,193 202,709
CryoLife, Inc.* 12,725 200,419
SuperGen, Inc.* 20,255 191,157
COR Therapeutics, Inc.* 23,997 185,977
Vical, Inc.* 15,721 172,931
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
18
<PAGE>
RYDEX SERIES TRUST
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
Enzo Biochem, Inc.* 24,377 $ 170,639
<S> <C> <C>
Aphton Corporation* 14,107 165,757
Maxim Pharmaceuticals, Inc.* 9,771 144,733
Immunomedics, Inc.* 37,363 130,770
Texas Biotechnology Corporation* 33,852 129,061
Martek Biosciences Corporation* 14,776 121,902
Advanced Tissue Sciences, Inc.* 39,091 118,495
XOMA Corporation* 42,266 116,231
VIVUS, Inc.* 31,578 109,536
Myriad Genetics, Inc.* 9,270 109,502
Miravant Medical Technologies* 13,898 104,235
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
Diacrin, Inc.* 14,237 $ 103,663
Amylin Pharmaceuticals, Inc.* 32,421 103,342
Alexion Pharmaceuticals, Inc.* 11,158 103,212
Creative BioMolecules, Inc.* 33,418 100,254
Alliance Pharmaceutical Corporation* 31,804 97,400
Genelabs Technologies, Inc.* 39,433 91,189
Cell Genesys, Inc.* 28,282 90,149
-----------
Total Common Stocks (Cost
$48,389,406) 48,189,825
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
FACE AMOUNT (NOTE 1)
------------ -------------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
5.40% due 10/01/98 (Note 2) $ 76,084 $ 76,084
5.45% due 10/01/98 (Note 2) 152,169 152,169
5.50% due 10/01/98 (Note 2) 71,747 71,747
-------------
Total Repurchase Agreements (Cost
$300,000) 300,000
-------------
Total Investments 100% (Cost
$48,689,406) $ 48,489,825
-------------
-------------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
19
<PAGE>
RYDEX SERIES TRUST
ELECTRONICS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS 99.3%
Intel Corporation 28,934 $ 2,481,091
EMC Corporation 32,619 1,865,399
Motorola, Inc. 30,976 1,322,288
Texas Instruments, Inc.* 23,313 1,229,761
Applied Materials, Inc.* 24,548 619,837
Seagate Technology, Inc.* 19,119 479,170
Micron Technology, Inc. 14,980 455,954
Solectron Corporation* 9,146 439,008
AMP, Inc. 8,538 305,234
Linear Technology Corporation 5,996 299,800
Maxim Integrated Products, Inc.* 10,268 286,221
Altera Corporation* 7,616 267,512
Symbol Technologies, Inc. 4,594 235,730
Advanced Micro Devices* 11,237 208,587
Analog Devices* 12,702 204,026
ASM Lithography Holding NV* 12,936 202,933
Storage Technology Corporation* 7,904 201,058
Xilinx, Inc.* 5,655 197,925
Quantum Corporation* 11,826 187,738
Molex, Inc. 6,034 174,986
Thomas and Betts Corporation 4,431 168,654
KLA Tencor Corporation* 6,720 167,160
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
Stimicroelectronics NV-NY Shares 3,276 $ 147,215
LSI Logic Corporation* 11,010 139,001
Vitesse Semiconductor Corporation* 5,720 135,134
SCI Systems, Inc.* 4,687 126,256
National Semiconductor Corporation* 12,924 125,201
Teradyne, Inc.* 6,562 119,757
Rambus, Inc.* 1,786 114,304
Uniphase Corporation* 2,727 111,806
Avnet, Inc. 3,021 111,211
Broadcom Corporation Class A* 1,533 108,843
Berg Electronic Corporation* 3,077 106,541
AVX Corporation 6,843 101,790
Arrow Electronics, Inc. 7,465 97,978
Sanmina Corporation* 3,289 92,503
Taiwan Semiconductor-Sponsored ADR* 7,479 91,624
Microchip Technology, Inc.* 3,971 86,866
Varian Associates, Inc. 2,322 81,850
Iomega Corporation* 20,829 78,109
PMC Sierra, Inc.* 2,396 76,373
ASE Test Limited 3,010 74,498
-----------
Total Common Stocks (Cost
$14,640,443) 14,126,932
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
20
<PAGE>
RYDEX SERIES TRUST
ELECTRONICS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
------- -----------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.7%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
5.40% due 10/01/98 (Note 2) $25,361 $ 25,361
5.45% due 10/01/98 (Note 2) 50,723 50,723
5.50% due 10/01/98 (Note 2) 23,916 23,916
-----------
Total Repurchase Agreements (Cost
$100,000) 100,000
-----------
Total Investments 100% (Cost
$14,740,443) $14,226,932
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements
21
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL BASIC
ENERGY SERVICES HEALTH CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements $ -- $ -- $ 300,000 $ 400,000 $ --
Investment Securities 28,338,887 3,905,804 22,475,321 38,041,704 3,113,021
----------- ---------- ----------- ----------- ----------
Securities at Value (Note 1)--See
Accompanying Schedules 28,338,887 3,905,804 22,775,321 38,441,704 3,113,021
Receivable for Securities Sold 9,139,753 147,174 11,013,624 2,202,962 14,838
Investment Income Receivable 24,878 7,622 27,326 24,380 --
Cash in Custodian Bank -- 79,002 10,167 50,415 22,329
Receivable for Shares Purchased 231,047 2,500 141,900 25,432 138,425
Other Assets -- 2,999 16,344 -- 11,419
----------- ---------- ----------- ----------- ----------
Total Assets 37,734,565 4,145,101 33,984,682 40,744,893 3,300,032
----------- ---------- ----------- ----------- ----------
LIABILITIES
Cash Due to Custodian Bank 256,507 -- -- -- --
Payable for Securities Purchased -- -- -- -- --
Liability for Shares Redeemed 8,562,788 116,811 10,939,801 1,807,643 114,480
Investment Advisory Fee Payable 7,216 -- 28,250 24,188 862
Transfer Agent Fee Payable 2,122 -- 8,309 7,114 253
Other Liabilities 9,964 43,197 64,888 79,184 58
----------- ---------- ----------- ----------- ----------
Total Liabilities 8,838,597 160,008 11,041,248 1,918,129 115,653
----------- ---------- ----------- ----------- ----------
NET ASSETS $28,895,968 $3,985,093 $22,943,434 $38,826,764 $3,184,379
----------- ---------- ----------- ----------- ----------
----------- ---------- ----------- ----------- ----------
INVESTOR CLASS:
Net Assets $13,133,638 $3,040,301 $22,826,108 $17,690,117 $2,976,278
Shares Outstanding 1,524,468 391,541 2,232,747 1,595,270 383,557
Net Asset Value Per Share $8.62 $7.76 $10.22 $11.09 $7.76
ADVISOR CLASS:
Net Assets $15,762,330 $ 944,792 $ 117,326 $21,136,647 $ 208,101
Shares Outstanding 1,823,570 121,976 11,487 1,909,781 26,917
Net Asset Value Per Share $8.64 $7.75 $10.21 $11.07 $7.73
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
-------- -------- ---------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements $ -- $ -- $ -- $ -- $ --
Investment Securities 182,696 211,380 976,514 5,588,417 212,333
-------- -------- ---------- --------------- ---------------
Securities at Value (Note 1)--See
Accompanying Schedules 182,696 211,380 976,514 5,588,417 212,333
Receivable for Securities Sold -- 6,667 228,809 -- 162,990
Investment Income Receivable -- 560 24,895 8,059 5,463
Cash in Custodian Bank -- 3,655 71,299 32,958 6,180
Receivable for Shares Purchased -- -- -- 1,163,082 --
Other Assets 8,203 -- -- 9,069 --
-------- -------- ---------- --------------- ---------------
Total Assets 190,899 222,262 1,301,517 6,801,585 386,966
-------- -------- ---------- --------------- ---------------
LIABILITIES
Cash Due to Custodian Bank 3,558
Payable for Securities Purchased -- -- -- 412,915 --
Liability for Shares Redeemed -- 3,876 223,708 632,676 166,829
Investment Advisory Fee Payable 185 605 13,549 2,054 1,382
Transfer Agent Fee Payable 56 178 3,985 601 397
Other Liabilities 56 1,404 71,598 -- 680
-------- -------- ---------- --------------- ---------------
Total Liabilities 3,855 6,063 312,840 1,048,246 169,288
-------- -------- ---------- --------------- ---------------
NET ASSETS $187,044 $216,199 $ 988,677 $ 5,753,339 $ 217,678
-------- -------- ---------- --------------- ---------------
-------- -------- ---------- --------------- ---------------
INVESTOR CLASS:
Net Assets $186,960 $206,567 $ 920,928 $ 5,522,146 $ 213,746
Shares Outstanding 25,362 24,357 101,899 590,543 30,041
Net Asset Value Per Share $7.37 $8.48 $9.04 $9.35 $7.12
ADVISOR CLASS:
Net Assets $ 84 $ 9,632 $ 67,749 $ 231,193 $ 3,932
Shares Outstanding 11 1,137 7,499 24,899 555
Net Asset Value Per Share $7.38 $8.47 $9.03 $9.29 $7.08
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Repurchase Agreements $ 100,000 $ -- $ 300,000 $ 100,000
Investment Securities 11,295,434 1,217,106 48,189,825 14,126,932
----------- ---------- ----------- -----------
Securities at Value (Note 1)--See
Accompanying Schedules 11,395,434 1,217,106 48,489,825 14,226,932
Receivable for Securities Sold 16,452,642 1,659,244 -- --
Investment Income Receivable 10,754 -- 1,468 5,474
Cash in Custodian Bank 42,518 46,500 16,179 53,414
Receivable for Shares Purchased 611,073 2,500 1,208,717 639,689
Other Assets -- -- 1,343 --
----------- ---------- ----------- -----------
Total Assets 28,512,421 2,925,350 49,717,532 14,925,509
----------- ---------- ----------- -----------
LIABILITIES
Payable for Securities Purchased -- -- 67,720 444,896
Liability for Shares Redeemed 16,942,656 1,669,048 458,951 36,024
Investment Advisory Fee Payable 11,399 3,910 7,884 4,804
Transfer Agent Fee Payable 3,354 985 2,319 1,413
Other Liabilities 24,521 11,466 12,104 15,101
----------- ---------- ----------- -----------
Total Liabilities 16,981,930 1,685,409 548,978 502,238
----------- ---------- ----------- -----------
NET ASSETS $11,530,491 $1,239,941 $49,168,554 $14,423,271
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
INVESTOR CLASS:
Net Assets $10,623,347 $ 990,091 $27,214,156 $14,366,282
Shares Outstanding 1,958,582 130,895 3,016,103 1,731,129
Net Asset Value Per Share $5.42 $7.56 $9.02 $8.30
ADVISOR CLASS:
Net Assets $ 907,144 $ 249,850 $21,954,398 $ 56,989
Shares Outstanding 166,939 33,082 2,451,809 6,886
Net Asset Value Per Share $5.43 $7.55 $8.95 $8.28
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
Period Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND* FUND* FUND* FUND* FUND*
----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 383 $ 2,861 $ 7,303 $ 8,433 $ 362
Dividends, Net of Foreign Taxes
Withheld 43,877 116,763 102,223 32,433 88,278
----------- ---------- ---------- ----------- -----------
Total Income 44,260 119,624 109,526 40,866 88,640
----------- ---------- ---------- ----------- -----------
EXPENSES
Advisory Fees (Note 3) 15,973 78,750 125,887 140,405 28,631
Transfer Agent Fees (Note 3) 4,698 23,162 37,026 41,296 8,421
Audit and Outside Services 117 1,162 1,043 1,178 598
Accounting Fees (Note 3) 7,588 10,552 12,354 12,381 5,926
Legal 64 622 435 673 498
Organizational Expenses -- -- -- -- 703
Registration Fees 1,121 1,013 7,231 9,707 1,275
Custodian Fees 2,238 19,013 24,402 16,064 7,357
Distribution Fees--Advisor Class
(Note 3) 286 5,223 18,436 17,286 5,569
Service Fees--Advisor Class (Note 3) 286 5,223 18,436 17,286 5,569
Miscellaneous -- 17,810 55,656 58,096 --
----------- ---------- ---------- ----------- -----------
Total Expenses 32,371 162,530 300,906 314,372 64,547
Custodian Fees Paid Indirectly
(Note 4) 524 -- 11,525 -- 639
----------- ---------- ---------- ----------- -----------
Net Expenses 31,847 162,530 289,381 314,372 63,908
----------- ---------- ---------- ----------- -----------
Net Investment Income 12,413 (42,906) (179,855) (273,506) 24,732
----------- ---------- ---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities (1,742,566) 1,414,644 (561,096) (3,550,827) (1,623,431)
----------- ---------- ---------- ----------- -----------
Net Change in Unrealized Appreciation
(Depreciation) On Investments (41,220) 33,322 1,999,843 3,614,995 (58,926)
----------- ---------- ---------- ----------- -----------
Net Gain (Loss) on Investments (1,783,786) 1,447,966 1,438,747 64,168 (1,682,357)
----------- ---------- ---------- ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations $(1,771,373) $1,405,060 $1,258,892 $ (209,338) $(1,657,625)
----------- ---------- ---------- ----------- -----------
----------- ---------- ---------- ----------- -----------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--BASIC MATERIALS FUND INVESTOR
CLASS, APRIL 2, 1998-- FINANCIAL SERVICES FUND INVESTOR CLASS, APRIL 6,
1998--FINANCIAL SERVICES FUND ADVISOR CLASS, APRIL 14, 1998--TECHNOLOGY FUND
INVESTOR CLASS AND BASIC MATERIALS FUND ADVISOR CLASS, APRIL 17, 1998-- HEALTH
CARE FUND INVESTOR CLASS, APRIL 21, 1998--ENERGY FUND INVESTOR CLASS, APRIL 29,
1998-- TECHNOLOGY FUND ADVISOR CLASS, MAY 5, 1998--ENERGY FUND ADVISOR CLASS,
MAY 11, 1998--HEALTH CARE FUND ADVISOR CLASS.
See Notes to Financial Statements.
25
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
Period Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND* FUND* FUND* FUND* FUND*
--------- --------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ -- $ 231 $ 5,616 $ 862 $ 355
Dividends, Net of Foreign Taxes
Withheld 6,130 4,368 107,523 86,905 12,056
--------- --------- ----------- --------------- ---------------
Total Income 6,130 4,599 113,139 87,767 12,411
--------- --------- ----------- --------------- ---------------
EXPENSES
Advisory Fees (Note 3) 1,221 9,964 128,138 34,522 12,525
Transfer Agent Fees (Note 3) 359 2,930 37,688 10,154 3,684
Audit and Outside Services 7 148 1,910 490 177
Accounting Fees (Note 3) 666 4,272 12,746 7,444 4,287
Legal 2 89 1,123 367 104
Organizational Expenses -- 624 482 2,012 --
Registration Fees 7 -- 1,622 6,437 153
Custodian Fees 156 2,796 22,619 11,663 3,592
Distribution Fees--Advisor Class
(Note 3) 4 70 18,412 3,000 21
Service Fees--Advisor Class (Note 3) 4 70 18,412 3,000 21
Miscellaneous -- 6,501 39,740 -- --
--------- --------- ----------- --------------- ---------------
Total Expenses 2,426 27,464 282,892 79,089 24,564
Custodian Fees Paid Indirectly
(Note 4) -- 497 -- 1,125 588
--------- --------- ----------- --------------- ---------------
Net Expenses 2,426 26,967 282,892 77,964 23,976
--------- --------- ----------- --------------- ---------------
Net Investment Income 3,704 (22,368) (169,753) 9,803 (11,565)
--------- --------- ----------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities (272,098) (279,980) (995,247) (2,037,118) (203,250)
--------- --------- ----------- --------------- ---------------
Net Change in Unrealized Appreciation
(Depreciation) On Investments (4,022) 15,924 84,494 58,017 9,019
--------- --------- ----------- --------------- ---------------
Net Gain (Loss) on Investments (276,120) (264,056) (910,753) (1,979,101) (194,231)
--------- --------- ----------- --------------- ---------------
Net Increase (Decrease) in Net Assets
from Operations $(272,416) $(286,424) $(1,080,506) $ (1,969,298) $ (205,796)
--------- --------- ----------- --------------- ---------------
--------- --------- ----------- --------------- ---------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--TELECOMMUNICATIONS FUND INVESTOR
AND ADVISOR CLASS, LEISURE FUND INVESTOR CLASS AND RETAILING FUND INVESTOR
CLASS, APRIL 2, 1998--TRANSPORTATION FUND INVESTOR CLASS, APRIL 21,
1998--RETAILING FUND ADVISOR CLASS, JUNE 3, 1998--LEISURE FUND ADVISOR CLASS,
JUNE 9, 1998--TRANSPORTATION FUND ADVISOR CLASS, JULY 6, 1998--CONSUMER PRODUCTS
FUND INVESTOR CLASS, AUGUST 17, 1998--CONSUMER PRODUCTS FUND ADVISOR CLASS.
See Notes to Financial Statements.
26
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
Period Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND* FUND* FUND* FUND*
------------ --------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 2,455 $ 1,220 $ 1,550 $ 918
Dividends, Net of Foreign Taxes
Withheld 20,576 97,079 366,019 10,606
------------ --------- ----------- -----------
Total Income 23,031 98,299 367,569 11,524
------------ --------- ----------- -----------
EXPENSES
Advisory Fees (Note 3) 49,031 47,440 43,371 33,141
Transfer Agent Fees (Note 3) 14,421 13,788 12,756 9,747
Audit and Outside Services 728 830 323 289
Accounting Fees (Note 3) 8,333 8,953 8,607 8,333
Legal 580 605 270 185
Organizational Expenses 1,952 1,741 1,850 573
Registration Fees 3,487 1,841 7,599 3,768
Custodian Fees 11,150 13,839 6,949 6,804
Distribution Fees--Advisor Class
(Note 3) 890 5,508 7,848 849
Service Fees--Advisor Class (Note 3) 890 5,508 7,848 849
Miscellaneous 4,703 800 10,180 5,318
------------ --------- ----------- -----------
Total Expenses 96,165 100,853 107,601 69,856
Custodian Fees Paid Indirectly
(Note 4) 1,046 743 1,030 794
------------ --------- ----------- -----------
Net Expenses 95,119 100,110 106,571 69,062
------------ --------- ----------- -----------
Net Investment Income (72,088) (1,811) 260,998 (57,538)
------------ --------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities (10,207,367) (340,648) (9,137,747) (3,404,291)
------------ --------- ----------- -----------
Net Change in Unrealized Appreciation
(Depreciation) On Investments 329,974 33,603 (199,581) (513,511)
------------ --------- ----------- -----------
Net Gain (Loss) on Investments (9,877,393) (307,045) (9,337,328) (3,917,802)
------------ --------- ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations $ (9,949,481) $(308,856) $(9,076,330) $(3,975,340)
------------ --------- ----------- -----------
------------ --------- ----------- -----------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--BANKING FUND INVESTOR AND ADVISOR
CLASS, BIOTECHNOLOGY FUND INVESTOR AND ADVISOR CLASS, ELECTRONICS FUND INVESTOR
CLASS AND ENERGY SERVICES FUND INVESTOR CLASS, APRIL 2, 1998--ENERGY SERVICES
FUND ADVISOR CLASS AND ELECTRONICS FUND ADVISOR CLASS.
See Notes to Financial Statements.
27
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
Period Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL BASIC
ENERGY SERVICES HEALTH CARE TECHNOLOGY MATERIALS
FUND* FUND* FUND* FUND* FUND*
----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss) $ 12,413 $ (42,906) $ (179,855) $ (273,506) $ 24,732
Net Realized Gain (Loss) on
Investments (1,742,566) 1,414,644 (561,096) (3,550,827) (1,623,431)
Net Change in Unrealized Appreciation
(Depreciation) of Investments (41,220) 33,322 1,999,843 3,614,995 (58,926)
----------- ---------- ----------- ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations (1,771,373) 1,405,060 1,258,892 (209,338) (1,657,625)
----------- ---------- ----------- ----------- -----------
Distributions to Shareholders From
Net Investment Income (Note 1):
Investor Class -- -- -- -- --
Advisor Class -- -- -- -- --
From Realized Gain on Investments:
Investor Class -- -- -- -- --
Advisor Class -- -- -- -- --
Net Increase in Net Assets from Shares
Transactions (Note 7) 30,667,341 2,580,033 21,684,542 39,036,102 4,842,004
----------- ---------- ----------- ----------- -----------
Net Increase (Decrease) in Net Assets 28,895,968 3,985,093 22,943,434 38,826,764 3,184,379
----------- ---------- ----------- ----------- -----------
NET ASSETS--Beginning of Period -- -- -- -- --
----------- ---------- ----------- ----------- -----------
NET ASSETS--End of Period $28,895,968 $3,985,093 $22,943,434 $38,826,764 $ 3,184,379
----------- ---------- ----------- ----------- -----------
----------- ---------- ----------- ----------- -----------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--BASIC MATERIALS FUND INVESTOR
CLASS, APRIL 2, 1998-- FINANCIAL SERVICES FUND INVESTOR CLASS, APRIL 6,
1998--FINANCIAL SERVICES FUND ADVISOR CLASS, APRIL 14, 1998--TECHNOLOGY FUND
INVESTOR CLASS AND BASIC MATERIALS FUND ADVISOR CLASS, APRIL 17, 1998-- HEALTH
CARE FUND INVESTOR CLASS, APRIL 21, 1998--ENERGY FUND INVESTOR CLASS, APRIL 29,
1998-- TECHNOLOGY FUND ADVISOR CLASS, MAY 5, 1998--ENERGY FUND ADVISOR CLASS,
MAY 11, 1998--HEALTH CARE FUND ADVISOR CLASS.
See Notes to Financial Statements.
28
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
Period Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND* FUND* FUND* FUND* FUND*
--------- --------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss) $ 3,704 $ (22,368) $ (169,753) $ 9,803 $ (11,565)
Net Realized Gain (Loss) on
Investments (272,098) (279,980) (995,247) (2,037,118) (203,250)
Net Change in Unrealized Appreciation
(Depreciation) of Investments (4,022) 15,924 84,494 58,017 9,019
--------- --------- ----------- --------------- ---------------
Net Increase (Decrease) in Net Assets
from Operations (272,416) (286,424) (1,080,506) (1,969,298) (205,796)
Distributions to Shareholders
From Net Investment Income (Note 1):
Investor Class -- -- -- -- --
Advisor Class -- -- -- -- --
From Realized Gain on Investments:
Investor Class -- -- -- -- --
Advisor Class -- -- -- -- --
Net Increase (Decrease) in Net Assets
from Shares Transactions (Note 7) 459,460 502,623 2,069,183 7,722,637 423,474
--------- --------- ----------- --------------- ---------------
Net Increase (Decrease) in Net Assets 187,044 216,199 988,677 5,753,339 217,678
--------- --------- ----------- --------------- ---------------
NET ASSETS--Beginning of Period -- -- -- -- --
--------- --------- ----------- --------------- ---------------
NET ASSETS--End of Period $ 187,044 $ 216,199 $ 988,677 $ 5,753,339 $ 217,678
--------- --------- ----------- --------------- ---------------
--------- --------- ----------- --------------- ---------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--TELECOMMUNICATIONS FUND INVESTOR
AND ADVISOR CLASS, LEISURE FUND INVESTOR CLASS AND RETAILING FUND INVESTOR
CLASS, APRIL 2, 1998--TRANSPORTATION FUND INVESTOR CLASS, APRIL 21,
1998--RETAILING FUND ADVISOR CLASS, JUNE 3, 1998--LEISURE FUND ADVISOR CLASS,
JUNE 9, 1998--TRANSPORTATION FUND ADVISOR CLASS, JULY 6, 1998--CONSUMER PRODUCTS
FUND INVESTOR CLASS, AUGUST 17, 1998--CONSUMER PRODUCTS FUND ADVISOR CLASS.
See Notes to Financial Statements.
29
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
Period Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND* FUND* FUND* FUND*
---------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss) $ (72,088) $ (1,811) $ 260,998 $ (57,538)
Net Realized Gain (Loss) on
Investments (10,207,367) (340,648) (9,137,747) (3,404,291)
Net Change in Unrealized Appreciation
(Depreciation) of Investments 329,974 33,603 (199,581) (513,511)
---------------- ------------ -------------- ------------
Net Increase (Decrease) in Net Assets
from Operations (9,949,481) (308,856) (9,076,330) (3,975,340)
Distributions to Shareholders
From Net Investment Income (Note 1):
Investor Class -- -- -- --
Advisor Class -- -- -- --
From Realized Gain on Investments:
Investor Class -- -- -- --
Advisor Class -- -- -- --
Net Increase (Decrease) in Net Assets
from Shares Transactions (Note 7) 21,479,972 1,548,797 58,244,884 18,398,611
---------------- ------------ -------------- ------------
Net Increase (Decrease) in Net Assets 11,530,491 1,239,941 49,168,554 14,423,271
---------------- ------------ -------------- ------------
NET ASSETS--Beginning of Period -- -- -- --
---------------- ------------ -------------- ------------
NET ASSETS--End of Period $ 11,530,491 $ 1,239,941 $ 49,168,554 $ 14,423,271
---------------- ------------ -------------- ------------
---------------- ------------ -------------- ------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--BANKING FUND INVESTOR AND ADVISOR
CLASS, BIOTECHNOLOGY FUND INVESTOR AND ADVISOR CLASS, ELECTRONICS FUND INVESTOR
CLASS AND ENERGY SERVICES FUND INVESTOR CLASS, APRIL 2, 1998--ENERGY SERVICES
FUND ADVISOR CLASS AND ELECTRONICS FUND ADVISOR CLASS.
See Notes to Financial Statements.
30
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
------------------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 1998*
------------------------------------------------------
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
-------- -------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- -------- ------- ----------- -----------
Net Investment Income (Loss) .02 (.01) (.02) (.08) (.02)
Net Realized and Unrealized Gains
(Losses) on Securities (1.40) (2.23) .24 1.17 (2.22)
-------- -------- ------- ----------- -----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations (1.38) (2.24) .22 1.09 (2.24)
Dividends to Shareholders from Net
Investment Income .00 .00 .00 .00 .00
Distributions to Shareholders from
Net Realized Capital Gain .00 .00 .00 .00 .00
-------- -------- ------- ----------- -----------
Net Increase (Decrease) in Net Asset
Value (1.38) (2.24) .22 1.09 (2.24)
-------- -------- ------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 8.62 $ 7.76 $ 10.22 $ 11.09 $ 7.76
-------- -------- ------- ----------- -----------
-------- -------- ------- ----------- -----------
TOTAL INVESTMENT RETURN (13.80)% (22.40)% 2.20% 10.90% (22.40)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses** 2.06% 1.65% 1.71% 1.65% 1.80%
Net Expenses** 2.03% 1.65% 1.64% 1.65% 1.78%
Net Investment Income (Loss)** 0.66% (0.30)% (0.43)% (1.54)% (0.44)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 2,352% 3,609% 2,107% 2,501% 2,416%
Net Assets, End of Period (000's
omitted) $13,134 $3,040 $22,826 $17,690 $2,976
</TABLE>
+ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE DAILY SHARES OUTSTANDING AVERAGE FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 21, 1998--ENERGY FUND, APRIL
2, 1998--FINANCIAL SERVICES FUND, APRIL 17, 1998--HEALTH CARE FUND,
APRIL 14, 1998--TECHNOLOGY FUND, APRIL 1, 1998--BASIC MATERIALS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
See Notes to Financial Statements.
31
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
------------------------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 1998*
------------------------------------------------------------
CONSUMER TELECOMMUNI-
PRODUCTS LEISURE RETAILING CATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
--------- -------- -------- ------------ --------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
--------- -------- -------- ------------ --------------
Net Investment Income (Loss) .06 (.10) (.04) .01 (.03)
Net Realized and Unrealized Gains
(Losses) on Securities (2.69) (1.42) (.92) (.66) (2.85)
--------- -------- -------- ------------ --------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations (2.63) (1.52) (.96) (.65) (2.88)
Dividends to Shareholders from Net
Investment Income .00 .00 .00 .00 .00
Distributions to Shareholders from
Net Realized Capital Gain .00 .00 .00 .00 .00
--------- -------- -------- ------------ --------------
Net Increase (Decrease) in Net Asset
Value (2.63) (1.52) (.96) (.65) (2.88)
--------- -------- -------- ------------ --------------
NET ASSET VALUE--END OF PERIOD $ 7.37 $ 8.48 $ 9.04 $ 9.35 $ 7.12
--------- -------- -------- ------------ --------------
--------- -------- -------- ------------ --------------
TOTAL INVESTMENT RETURN (26.30)% (15.20)% (9.60)% (6.50)% (28.80)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses** 1.69% 1.79% 1.66% 1.70% 1.70%
Net Expenses** 1.69% 1.74% 1.66% 1.67% 1.66%
Net Investment Income (Loss)** 2.88% (1.94)% (0.73)% 0.25% (0.79)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 1,194% 4,296% 1,660% 2,598% 3,716%
Net Assets, End of Period (000's
omitted) $187 $207 $921 $5,522 $214
</TABLE>
+ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE DAILY SHARES OUTSTANDING AVERAGE FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: JULY 6, 1998--CONSUMER PRODUCTS
FUND, APRIL 1, 1998--LEISURE FUND, APRIL 1, 1998--RETAILING FUND, APRIL
1, 1998--TELECOMMUNICATIONS FUND, APRIL 2, 1998--TRANSPORTATION FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
See Notes to Financial Statements.
32
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 1998*
-----------------------------------------------
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
-------- -------- ------------- -----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- -------- ------------- -----------
Net Investment Income (Loss) (.43) (.01) (.05) (.06)
Net Realized and Unrealized Gains
(Losses) on Securities (4.15) (2.43) (.93) (1.64)
-------- -------- ------------- -----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations (4.58) (2.44) (.98) (1.70)
Dividends to Shareholders from Net
Investment Income .00 .00 .00 .00
Distributions to Shareholders from
Net Realized Capital Gain .00 .00 .00 .00
-------- -------- ------------- -----------
Net Increase (Decrease) in Net Asset
Value (4.58) (2.44) (.98) (1.70)
-------- -------- ------------- -----------
NET ASSET VALUE-END OF PERIOD $ 5.42 $ 7.56 $ 9.02 $ 8.30
-------- -------- ------------- -----------
-------- -------- ------------- -----------
TOTAL INVESTMENT RETURN (45.80)% (24.40)% (9.80)% (17.00)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses** 1.65% 1.65% 1.65% 1.71%
Net Expenses** 1.63% 1.64% 1.63% 1.69%
Net Investment Income (Loss)** (1.17)% (0.31)% (1.27)% (1.40)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 3,195% 4,556% 1,490% 6,429%
Net Assets, End of Period (000's
omitted) $10,623 $990 $27,214 $14,366
</TABLE>
+ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE DAILY SHARES OUTSTANDING AVERAGE FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--ENERGY SERVICES
FUND, APRIL 1, 1998--BANKING FUND, APRIL 1, 1998--BIOTECHNOLOGY FUND,
APRIL 1, 1998--ELECTRONICS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
See Notes to Financial Statements.
33
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-------------------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 1998*
-------------------------------------------------------
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
--------- --------- ------ ----------- -----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.07 $ 10.47 $ 9.93 $ 10.84 $ 10.56
--------- --------- ------ ----------- -----------
Net Investment Income (Loss) .02 (.05) (.08) (.09) .07
Net Realized and Unrealized
Gains (Losses) on Securities (1.45) (2.67) .36 .32 (2.90)
--------- --------- ------ ----------- -----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations (1.43) (2.72) .28 .23 (2.83)
Dividends to Shareholders from Net
Investment Income .00 .00 .00 .00 .00
Distributions to Shareholders from
Net Realized Capital Gain .00 .00 .00 .00 .00
--------- --------- ------ ----------- -----------
Net Increase (Decrease) in Net Asset
Value (1.43) (2.72) .28 .23 (2.83)
--------- --------- ------ ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 8.64 $ 7.75 $10.21 $ 11.07 $ 7.73
--------- --------- ------ ----------- -----------
--------- --------- ------ ----------- -----------
TOTAL INVESTMENT RETURN (14.20)% (25.98)% 2.82% 2.12% (26.80)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses** 2.26% 2.16% 2.34% 2.26% 1.99%
Net Expenses** 2.23% 2.16% 2.25% 2.26% 1.97%
Net Investment Income (Loss)** 0.67% (1.02)% (2.00)% (1.82)% 1.34%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 2,352% 3,609% 2,107% 2,501% 2,416%
Net Assets, End of Period (000's
omitted) $ 15,762 $ 945 $ 117 $ 21,137 $ 208
</TABLE>
+ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE DAILY SHARES OUTSTANDING AVERAGE FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 5, 1998--ENERGY FUND, APRIL 6,
1998--FINANCIAL SERVICES FUND, MAY 11, 1998--HEALTH CARE FUND, APRIL 23,
1998--TECHNOLOGY FUND, APRIL 14, 1998--BASIC MATERIALS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
See Notes to Financial Statements.
34
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 1998*
-----------------------------------------------------------------
CONSUMER TELECOMMUNI-
PRODUCTS LEISURE RETAILING CATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
---------- --------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD $ 8.73 $ 9.35 $ 10.01 $ 10.00 $ 9.26
---------- --------- --------- ------------- ---------------
Net Investment Income (Loss) (.00) (.04) (.07) (.01) (.03)
Net Realized and Unrealized
Gains (Losses) on Securities (1.35) (.84) (.91) (.70) (2.15)
---------- --------- --------- ------------- ---------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations (1.35) (.88) (.98) (.71) (2.18)
Dividends to Shareholders from Net
Investment Income .00 .00 .00 .00 .00
Distributions to Shareholders from
Net Realized Capital Gain .00 .00 .00 .00 .00
---------- --------- --------- ------------- ---------------
Net Increase (Decrease) in Net Asset
Value (1.35) (.88) (.98) (.71) (2.18)
---------- --------- --------- ------------- ---------------
NET ASSET VALUE--END OF PERIOD $ 7.38 $ 8.47 $ 9.03 $ 9.29 $ 7.08
---------- --------- --------- ------------- ---------------
---------- --------- --------- ------------- ---------------
TOTAL INVESTMENT RETURN (15.46)% (9.41)% (9.79)% (7.10)% (23.54)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses** 2.23% 2.27% 2.11% 2.61% 2.24%
Net Expenses** 2.23% 2.22% 2.11% 2.58% 2.19%
Net Investment Income (Loss)** (22.79)% (1.18)% (1.54)% 0.19% (1.19)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 1,194% 4,296% 1,660% 2,598% 3,716%
Net Assets, End of Period (000's
omitted) $ -- $ 10 $ 68 $ 231 $ 4
</TABLE>
+ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE DAILY SHARES OUTSTANDING AVERAGE FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 17, 1998--CONSUMER PRODUCTS
FUND, JUNE 3, 1998--LEISURE FUND, APRIL 21, 1998--RETAILING FUND, APRIL
1, 1998--TELECOMMUNICATIONS FUND, JUNE 3, 1998--TRANSPORTATION FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
See Notes to Financial Statements.
35
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
---------------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 1998*
---------------------------------------------------
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
--------- --------- -------------- ------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.86 $ 10.00 $ 10.00 $ 9.98
--------- --------- -------------- ------------
Net Investment Income (Loss) (.07) .02 .41 (.12)
Net Realized and Unrealized
Gains (Losses) on Securities (4.36) (2.47) (1.46) (1.58)
--------- --------- -------------- ------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations (4.43) (2.45) (1.05) (1.70)
Dividends to Shareholders from Net
Investment Income .00 .00 .00 .00
Distributions to Shareholders from
Net Realized Capital Gain .00 .00 .00 .00
--------- --------- -------------- ------------
Net Increase (Decrease) in Net Asset
Value (4.43) (2.45) (1.05) (1.70)
--------- --------- -------------- ------------
NET ASSET VALUE--END OF PERIOD $ 5.43 $ 7.55 $ 8.95 $ 8.28
--------- --------- -------------- ------------
--------- --------- -------------- ------------
TOTAL INVESTMENT RETURN (44.93)% (24.50)% (10.50)% (17.03)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses** 2.11% 2.12% 2.44% 3.01%
Net Expenses** 2.09% 2.10% 2.42% 2.97%
Net Investment Income (Loss)** (2.66)% 0.38% 9.21% (2.58)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*** 3,195% 4,556% 1,490% 6,429%
Net Assets, End of Period (000's
omitted) $ 907 $ 250 $ 21,954 $ 57
</TABLE>
+ THE PER SHARE DATA OF THE FINANCIAL HIGHLIGHTS TABLE IS CALCULATED USING
THE DAILY SHARES OUTSTANDING AVERAGE FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998--ENERGY SERVICES
FUND, APRIL 1, 1998--BANKING FUND, APRIL 1, 1998--BIOTECHNOLOGY FUND,
APRIL 2, 1998--ELECTRONICS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
See Notes to Financial Statements.
36
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Trust (the "Trust") is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (the "1940 Act") as
a non-diversified, open-ended investment company, and is authorized to issue an
unlimited number of shares. The Trust consists of twenty two separate series,
grouped as seven index funds, one money market fund, and fourteen Sector Funds.
This report covers the fourteen Sector Funds, while the index funds and money
market fund are in a separate report. The Sector Funds are organized as multiple
class funds, with two classes, Investor Class Shares and Advisor Class Shares,
available to investors. Because the Trust is 100% no-load, the shares of each
fund are offered and redeemed at the net asset value per share. The following
significant accounting policies are in conformity with generally accepted
accounting principles and are consistently followed by the Trust.
A. Securities listed on an exchange are valued at the latest quoted sales prices
as of 4:00 P.M. on the valuation date. Securities not traded on an exchange are
valued at their last sales price. Listed options held by the Trust are valued at
their last bid price. Over-the-counter options held by the Trust are valued
using the average bid price obtained from one or more security dealers. The
value of futures contracts purchased and sold by the Trust are accounted for
using the unrealized gain or loss on the contracts that is determined by marking
the contracts to their current realized settlement prices. Short-term securities
are valued at amortized cost, which approximates market. Securities and assets
for which market quotations are not readily available are valued at fair value
as determined in good faith by or under direction of the Board of Trustees or by
the Advisor using methods established or ratified by the Board of Trustees.
B. Securities transactions are generally recorded on the day after the trade is
executed. Realized gains and losses from securities transactions are recorded on
the identified cost basis. Dividend income is recorded on the ex-dividend date,
net of applicable taxes withheld by foreign countries. Interest income is
accrued on a daily basis.
C. The Trust intends to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
D. Costs incurred in connection with the organization and registration of the
Sector Funds have been expensed as incurred.
E. Interest and dividend income, most expenses, all realized gains and losses,
and all unrealized gains and losses are allocated to the Classes based upon the
value of the outstanding shares in
37
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
each Class. Certain costs are charged directly to the specific Class, for
example, distribution fees related to the Advisor Class.
F. The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. REPURCHASE AGREEMENTS
The Trust transfers uninvested cash balances into a single joint account, the
daily aggregate balance of which is invested in one or more repurchase
agreements collateralized by U. S. Treasury obligations. As of September 30,
1998 the repurchase agreements with Fuji Securities, Inc., Paine Webber, Inc.,
Lehman Brothers, and Prudential Securities, Inc., in the joint account and the
collateral therefore was as follows:
<TABLE>
<CAPTION>
RANGE OF
SECURITY TYPE RATES PAR VALUE MARKET VALUE
- --------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
United States Treasury Notes 5.25%-7.875% $281,200,000 $297,604,261
United States Treasury Bonds 8.875% $ 69,910,000 $101,227,495
</TABLE>
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays PADCO
Advisors, Inc., an affiliated entity, investment advisory fees calculated at an
annualized rate, based on average daily net assets, of eighty five one
hundredths of one percent (0.85%) of the net assets of each of the Sector Funds.
PADCO Service Company, Inc., a subsidiary of the investment advisor, provides
transfer agent services to the Trust at an annualized rate, based on average
daily net assets, of one quarter of one percent (0.25%) of the net assets of
each of the Sector Funds. The Trust paid PADCO Service Company, Inc. $112,443 in
accounting fees for the Sector Funds for the period ended September 30, 1998.
The Trust has adopted a Distribution and Shareholder Services Plan applicable to
Advisor Class Shares, for which the Distributor, PADCO Financial Services, Inc.,
(an affiliated entity), and other firms that provide distribution and
shareholder services ("Service Providers") may receive compensation. If a
Service Provider provides distribution services, the Trust will pay fees to the
Distributor at an annual rate not to exceed one quarter of one percent (0.25%)
of average daily net assets, pursuant to
38
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Rule 12b-1 of the 1940 Act. The Distributor will pay the Service Provider out of
its fees. The Distributor may, at its discretion, retain a portion of such
payments to compensate itself for distribution services. If a Service Provider
provides shareholders services, the Distributor will receive fees from the Trust
at an annual rate not to exceed one quarter of one percent (0.25%) of average
daily net assets. The Distributor will pay the Service Provider out of its fees.
4. ACCOUNTING FOR EXPENSES
The Trust has entered into an arrangement with its custodian whereby interest
earned on uninvested cash balances was used to offset a portion of the Trust's
expenses.
5. SECURITIES TRANSACTIONS
During the period ended September 30, 1998 purchases and sales of investment
securities were: (Unaudited)
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC CONSUMER
ENERGY SERVICES CARE TECHNOLOGY MATERIALS PRODUCTS
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Purchases $178,686,886 $535,790,572 $544,214,830 $718,519,087 $124,718,499 $26,220,227
Sales $148,564,212 $533,332,734 $523,178,256 $680,541,551 $119,923,122 $25,761,461
<CAPTION>
LEISURE
FUND
------------
<S> <C>
Purchases $115,861,498
Sales $115,386,061
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING
FUND FUND FUND FUND FUND
------------ --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Purchases $448,922,279 $ 198,079,840 $ 125,357,644 $ 420,452,002 $ 416,167,155
Sales $447,035,012 $ 190,512,322 $ 124,951,080 $ 399,279,175 $ 414,643,004
<CAPTION>
BIOTECHNOLOGY ELECTRONICS
FUND FUND
-------------- -------------
<S> <C> <C>
Purchases $ 304,838,604 $ 453,529,239
Sales $ 247,311,450 $ 435,484,505
</TABLE>
The transactions shown above exclude short-term and temporary cash investments.
39
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. NET UNREALIZED APPRECIATION/DEPRECIATION OF SECURITIES
At September 30, 1998 unrealized appreciation (depreciation) and cost of
investment securities for Federal income tax purposes was: (Unaudited)
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC CONSUMER
ENERGY SERVICES CARE TECHNOLOGY MATERIALS PRODUCTS LEISURE
FUND FUND FUND FUND FUND FUND FUND
----------- ---------- ----------- ----------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation $ 266,233 $ 113,495 $ 2,227,919 $ 3,946,392 $ 23,443 $ 2,691 $ 18,568
Gross Unrealized (Depreciation) (307,453) (80,173) (228,076) (331,397) (82,369) (6,713) (2,644)
----------- ---------- ----------- ----------- ---------- -------- --------
Net Unrealized
Appreciation/(Depreciation) $ (41,220) $ 33,322 $ 1,999,843 $ 3,614,995 $ (58,926) $ (4,022) $ 15,924
----------- ---------- ----------- ----------- ---------- -------- --------
----------- ---------- ----------- ----------- ---------- -------- --------
Cost of Investments for Federal Income
Tax Purposes $28,380,107 $3,872,482 $20,775,478 $34,826,709 $3,171,947 $186,718 $195,456
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING BIOTECHNOLOGY
FUND FUND FUND FUND FUND FUND
---------- --------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation $ 98,540 $ 167,972 $ 10,770 $ 457,018 $ 43,510 $ 616,851
Gross Unrealized (Depreciation) (14,046) (109,955) (1,751) (127,044) (9,907) (816,432)
---------- --------------- ------------ ------------- ------------ -------------
Net Unrealized Appreciation/
(Depreciation) $ 84,494 $ 58,017 $ 9,019 $ 329,974 $ 33,603 $ (199,581)
---------- --------------- ------------ ------------- ------------ -------------
---------- --------------- ------------ ------------- ------------ -------------
Cost of Investments for Federal
Income Tax Purposes $ 892,020 $ 5,530,400 $ 203,314 $ 11,065,460 $ 1,183,503 $ 48,689,406
<CAPTION>
ELECTRONICS
FUND
-------------
<S> <C>
Gross Unrealized Appreciation $ 27,050
Gross Unrealized (Depreciation) (540,561)
-------------
Net Unrealized Appreciation/
(Depreciation) $ (513,511)
-------------
-------------
Cost of Investments for Federal
Income Tax Purposes $ 14,740,443
</TABLE>
40
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of shares.
Transactions in shares for the period ended September 30, 1998 were: (Unaudited)
INVESTOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC CONSUMER
ENERGY SERVICES CARE TECHNOLOGY MATERIALS PRODUCTS
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased 21,032,569 68,000,631 59,447,185 73,408,829 13,095,061 2,826,005
----------- ----------- ----------- ----------- ----------- -------------
Total Purchased 21,032,569 68,000,631 59,447,185 73,408,829 13,095,061 2,826,005
Shares Redeemed (19,508,101) (67,609,090) (57,214,438) (71,813,559) (12,711,504) (2,800,643)
----------- ----------- ----------- ----------- ----------- -------------
Net Shares Purchased/(Redeemed) 1,524,468 391,541 2,232,747 1,595,270 383,557 25,362
----------- ----------- ----------- ----------- ----------- -------------
----------- ----------- ----------- ----------- ----------- -------------
<CAPTION>
LEISURE
FUND
------------
<S> <C>
Shares Purchased 13,242,107
------------
Total Purchased 13,242,107
Shares Redeemed (13,217,750)
------------
Net Shares Purchased/(Redeemed) 24,357
------------
------------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING BIOTECHNOLOGY
FUND FUND FUND FUND FUND FUND
----------- -------------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased 45,375,055 20,782,815 18,838,488 61,032,429 45,718,214 26,484,148
----------- -------------- ------------ ------------- ------------ ------------
Total Purchased 45,375,055 20,782,815 18,838,488 61,032,429 45,718,214 26,484,148
Shares Redeemed (45,273,156) (20,192,272) (18,808,447) (59,073,847) (45,587,319) (23,468,045)
----------- -------------- ------------ ------------- ------------ ------------
Net Shares Purchased/
(Redeemed) 101,899 590,543 30,041 1,958,582 130,895 3,016,103
----------- -------------- ------------ ------------- ------------ ------------
----------- -------------- ------------ ------------- ------------ ------------
<CAPTION>
ELECTRONICS
FUND
------------
<S> <C>
Shares Purchased 51,143,286
------------
Total Purchased 51,143,286
Shares Redeemed (49,412,157)
------------
Net Shares Purchased/
(Redeemed) 1,731,129
------------
------------
</TABLE>
Transactions in dollars for the period ended September 30, 1998 were:
(Unaudited)
INVESTOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC CONSUMER
ENERGY SERVICES CARE TECHNOLOGY MATERIALS PRODUCTS
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased $ 187,420,628 $ 667,106,424 $ 616,672,957 $ 815,203,754 $ 122,235,426 $ 26,222,831
------------- ------------- ------------- ------------- ------------- -------------
Total Purchased 187,420,628 667,106,424 616,672,957 815,203,754 122,235,426 26,222,831
Shares Redeemed (173,044,983) (664,469,211) (593,757,850) (799,228,065) (119,074,210) (25,760,765)
------------- ------------- ------------- ------------- ------------- -------------
Net Shares Purchased/ (Redeemed) $ 14,375,645 $ 2,637,213 $ 22,915,107 $ 15,975,689 $ 3,161,216 $ 462,066
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
LEISURE
FUND
-------------
<S> <C>
Shares Purchased $ 127,280,045
-------------
Total Purchased 127,280,045
Shares Redeemed (126,770,443)
-------------
Net Shares Purchased/ (Redeemed) $ 509,602
-------------
-------------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING
FUND FUND FUND FUND FUND
------------- --------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Shares Purchased $ 477,580,038 $ 212,985,718 $ 165,515,206 $ 489,888,609 $ 444,521,366
------------- --------------- --------------- -------------- --------------
Total Purchased 477,580,038 212,985,718 165,515,206 489,888,609 444,521,366
Shares Redeemed (476,119,134) (205,477,986) (165,117,281) (469,875,584) (443,697,445)
------------- --------------- --------------- -------------- --------------
Net Shares Purchased/
(Redeemed) $ 1,460,904 $ 7,507,732 $ 397,925 $ 20,013,025 $ 823,921
------------- --------------- --------------- -------------- --------------
------------- --------------- --------------- -------------- --------------
<CAPTION>
BIOTECHNOLOGY ELECTRONICS
FUND FUND
-------------- --------------
<S> <C> <C>
Shares Purchased $ 238,967,827 $ 473,209,866
-------------- --------------
Total Purchased 238,967,827 473,209,866
Shares Redeemed (208,011,236) (455,525,824)
-------------- --------------
Net Shares Purchased/
(Redeemed) $ 30,956,591 $ 17,684,042
-------------- --------------
-------------- --------------
</TABLE>
41
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Transactions in shares for the period ended September 30, 1998 were: (Unaudited)
ADVISOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC CONSUMER
ENERGY SERVICES CARE TECHNOLOGY MATERIALS PRODUCTS LEISURE
FUND FUND FUND FUND FUND FUND FUND
----------- ----------- ------------ ----------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares Purchased 3,096,369 5,484,077 10,789,403 7,282,901 2,099,114 67,668 24,567
----------- ----------- ------------ ----------- ----------- -------- --------
Total Purchased 3,096,369 5,484,077 10,789,403 7,282,901 2,099,114 67,668 24,567
Shares Redeemed (1,272,799) (5,362,101) (10,777,916) (5,373,120) (2,072,197) (67,657) (23,430)
----------- ----------- ------------ ----------- ----------- -------- --------
Net Shares Purchased/(Redeemed) 1,823,570 121,976 11,487 1,909,781 26,917 11 1,137
----------- ----------- ------------ ----------- ----------- -------- --------
----------- ----------- ------------ ----------- ----------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING BIOTECHNOLOGY
FUND FUND FUND FUND FUND FUND
---------- --------------- ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased 4,386,794 2,742,696 110,096 7,840,506 3,715,821 9,273,322
---------- --------------- ---------- ------------ ------------ ------------
Total Purchased 4,386,794 2,742,696 110,096 7,840,506 3,715,821 9,273,322
Shares Redeemed (4,379,295) (2,717,797) (109,541) (7,673,567) (3,682,739) (6,821,513)
---------- --------------- ---------- ------------ ------------ ------------
Net Shares Purchased/(Redeemed) 7,499 24,899 555 166,939 33,082 2,451,809
---------- --------------- ---------- ------------ ------------ ------------
---------- --------------- ---------- ------------ ------------ ------------
<CAPTION>
ELECTRONICS
FUND
------------
<S> <C>
Shares Purchased 6,778,903
------------
Total Purchased 6,778,903
Shares Redeemed (6,772,017)
------------
Net Shares Purchased/(Redeemed) 6,886
------------
------------
</TABLE>
Transactions in dollars for the period ended September 30, 1998 were:
(Unaudited)
ADVISOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC CONSUMER
ENERGY SERVICES CARE TECHNOLOGY MATERIALS PRODUCTS
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased $ 27,115,570 $ 50,483,168 $ 110,492,230 $ 81,273,554 $ 22,003,770 $ 590,746
------------ ------------ ------------- ------------ ------------ --------------
Total Purchased 27,115,570 50,483,168 110,492,230 81,273,554 22,003,770 590,746
Shares Redeemed (10,823,874) (50,540,348) (111,722,795) (58,213,141) (20,322,982) (593,352)
------------ ------------ ------------- ------------ ------------ --------------
Net Shares Purchased/ (Redeemed) $ 16,291,696 $ (57,180) $ (1,230,565) $ 23,060,413 $ 1,680,788 $ (2,606)
------------ ------------ ------------- ------------ ------------ --------------
------------ ------------ ------------- ------------ ------------ --------------
<CAPTION>
LEISURE
FUND
-----------
<S> <C>
Shares Purchased $ 229,825
-----------
Total Purchased 229,825
Shares Redeemed (236,804)
-----------
Net Shares Purchased/ (Redeemed) $ (6,979)
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING
FUND FUND FUND FUND FUND
------------ --------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased $ 44,423,128 $ 27,329,548 $ 1,005,971 $ 45,948,606 $ 35,443,018
------------ --------------- ------------ ------------- -------------
Total Purchased 44,423,128 27,329,548 1,005,971 45,948,606 35,443,018
Shares Redeemed (43,814,849) (27,114,643) (980,422) (44,481,659) (34,718,142)
------------ --------------- ------------ ------------- -------------
Net Shares Purchased/
(Redeemed) $ 608,279 $ 214,905 $ 25,549 $ 1,466,947 $ 724,876
------------ --------------- ------------ ------------- -------------
------------ --------------- ------------ ------------- -------------
<CAPTION>
BIOTECHNOLOGY ELECTRONICS
FUND FUND
------------- -------------
<S> <C> <C>
Shares Purchased $ 85,759,666 $ 59,669,982
------------- -------------
Total Purchased 85,759,666 59,669,982
Shares Redeemed (58,471,373) (58,955,413)
------------- -------------
Net Shares Purchased/
(Redeemed) $ 27,288,293 $ 714,569
------------- -------------
------------- -------------
</TABLE>
42
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
8. NET ASSETS
At September 30, 1998, net assets consisted of: (Unaudited)
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital $30,667,341 $2,580,033 $21,684,542 $39,036,102 $ 4,842,004
Undistributed Net Investment Income
(Loss) 12,413 (42,906) (179,855) (273,506) 24,732
Accumulated Net Realized Gain (Loss) on
Investments (1,742,566) 1,414,644 (561,096) (3,550,827) (1,623,431)
Net Unrealized Appreciation
(Depreciation) on Investments (41,220) 33,322 1,999,843 3,614,995 (58,926)
----------- ---------- ----------- ----------- -----------
Net Assets $28,895,968 $3,985,093 $22,943,434 $38,826,764 $ 3,184,379
----------- ---------- ----------- ----------- -----------
----------- ---------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
-------- -------- ---------- --------------- ----------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital $459,460 $502,623 $2,069,183 $ 7,722,637 $ 423,474
Undistributed Net Investment Income
(Loss) 3,704 (22,368) (169,753) 9,803 (11,565)
Accumulated Net Realized Gain (Loss) on
Investments (272,098) (279,980) (995,247) (2,037,118) (203,250)
Net Unrealized Appreciation
(Depreciation) on Investments (4,022) 15,924 84,494 58,017 9,019
-------- -------- ---------- --------------- ----------
Net Assets $187,044 $216,199 $ 988,677 $ 5,753,339 $ 217,678
-------- -------- ---------- --------------- ----------
-------- -------- ---------- --------------- ----------
</TABLE>
<TABLE>
<CAPTION>
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Paid-In-Capital $21,479,972 $1,548,797 $58,244,884 $18,398,611
Undistributed Net Investment Income
(Loss) (72,088) (1,811) 260,998 (57,538)
Accumulated Net Realized Gain (Loss) on
Investments (10,207,367) (340,648) (9,137,747) (3,404,291)
Net Unrealized Appreciation
(Depreciation) on Investments 329,974 33,603 (199,581) (513,511)
----------- ---------- ----------- -----------
Net Assets $11,530,491 $1,239,941 $49,168,554 $14,423,271
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
</TABLE>
43
