<PAGE>
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RYDEX SERIES TRUST
[LOGO] SECTOR FUNDS
ANNUAL REPORT
March 31, 1999
6116 Executive Boulevard, Suite 400
Rockville, MD 20852
(301) 468-8520 (800) 820-0888
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- --------------------------------------------------------------------------------
DEAR SECTOR FUND SHAREHOLDER,
The Rydex Sector Funds' first year in operation was characterized by a
robust, low inflationary economic environment, as well as the highest stock
market volatility in over a decade. After a strong first half, the stock market
endured a severe correction in the third quarter and recovered in the fourth
quarter to allow stocks to post solid gains for the year. Large-capitalization
stocks sharply outperformed small-capitalization stocks for the reporting
period, and growth stocks surpassed value stocks. Technology and retailing
sectors were leaders, while the commodity and cyclical industries were laggards.
Merger and acquisition activity increased as companies attempted to enter new
lines of business, expand geographically, or cut operating costs.
FISCAL YEAR IN REVIEW
Stocks staged a powerful rally during the first half of 1998, propelled by a
favorable economic environment of low interest rates and healthy consumer
spending. In June, as the broad market touched new highs, Federal Reserve
Chairman Allen Greenspan described our nation's current economy as the most
impressive he has ever witnessed.
By late summer, U.S. stocks came under severe selling pressure as investor's
grew bearish amid the global economic crisis that began in Asia, moved to
Russia, and threatened several emerging markets in Latin America. The pullback
culminated on August 31, when the Dow Jones Industrial Average tumbled 512
points to post its second worst point loss in history. The S&P 500-TM- Index and
the NASDAQ 100 Index-TM- also fell sharply. The next day, Greenspan encouraged
investors by announcing that the Fed had to take action to contain the effects
of global economic turmoil on U.S. growth. As a result, the Fed cut the federal
funds rate by one quarter of a percentage point in late September, marking the
end of the worst quarter for U.S. stocks in eight years.
After the summer's global economic turmoil wiped out most of 1998's stock
market gains, the Fed followed its September rate cut with two more in the fall.
This helped restore investor confidence in the U.S. equity markets and sent
stocks soaring back to post one of the best quarters of the decade. Fourth
quarter GDP grew faster than expected, as
<PAGE>
consumer spending boosted the rate 5.6%--up an astonishing 4.8% for 1998. This
was the strongest GDP growth experienced in over a decade.
IN SUMMARY
Overall, large-cap stocks sharply outperformed small-cap stocks. Technology,
retail and drug stocks led the way, while commodity and industrial cyclical
sectors were laggards. Despite volatility, the U.S. equity markets have
responded to an impressive economy that continues to expand with benign
inflation. Our current economic expansion, which began in April 1991, is the
longest peacetime expansion in our nation's economic history.
Sincerely,
[/S/ ALBERT P. VIRAGH, JR.]
Albert P. (Skip) Viragh, Jr.
Chairman of the Board
2
<PAGE>
RYDEX SERIES TRUST
FUND STRATEGY AND PERFORMANCE
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In this section you will find information regarding the performance of each
Rydex Sector Fund in relation to the S&P 500 Index for the period ended March
31, 1999. In addition, each Fund's investment strategy will be briefly described
to provide an understanding of the factors that affected the Funds' performance
during the period. If you have any questions or comments, call us at (800)
820-0888 or (301) 468-8520.
Our goal is to create a liquid portfolio of stocks that adequately represent a
particular market sector while providing NAV pricing predictability. As with
other Rydex portfolios, we employ a quantitative approach that considers a
number of factors. The investment process screens stocks based primarily on
market capitalization, liquidity and correlation relative to the entire industry
sector. We intend to be fully invested at all times and, through our continuous
monitoring of the portfolios, we will add or delete stocks as needed. The
following Sector Funds are covered in this report:
RYDEX SECTOR FUNDS
Banking Fund
Basic Materials Fund
Biotechnology Fund
Consumer Products Fund
Electronics Fund
Energy Fund
Energy Services Fund
Financial Services Fund
Health Care Fund
Leisure Fund
Retailing Fund
Technology Fund
Telecommunications Fund
Transportation Fund
3
<PAGE>
BANKING FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES THAT ARE
INVOLVED IN THE BANKING SECTOR, INCLUDING COMMERCIAL BANKS (AND THEIR HOLDING
COMPANIES) AND SAVINGS AND LOAN INSTITUTIONS.
INCEPTION: APRIL 1,1998
Consolidation in the banking sector during the reporting period included
NationsBank Corp. with BankAmerica Corp., Wells Fargo & Co. with Norwest Corp.,
and First Chicago NBD Corp. with Banc One Corp. The sector was down for the year
as the companies absorbed merger related costs and investors waited to see if
the mergers made economic sense. The banking sector stocks came under selling
pressure in the second and third quarters of 1998 due to the Russian debt
default and the collapse of the Long Term Capital Management hedge fund. The
Banking Fund returned -12.30% for the period ended March 31,1999.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BANKING BANK ADV S&P 500
<S> <C> <C> <C>
Apr-98 10,000 10,000 10,000
Apr-98 10,130 10,130 10,107
Apr-98 10,190 10,190 10,131
Apr-98 10,510 10,510 10,119
Apr-98 10,350 10,350 10,013
Apr-98 10,200 10,200 9,941
Apr-98 10,360 10,360 10,023
Apr-98 10,650 10,650 10,014
Apr-98 10,670 10,670 10,069
Apr-98 10,640 10,640 10,101
Apr-98 10,440 10,440 10,000
Apr-98 10,560 10,560 10,131
Apr-98 10,470 10,470 10,140
Apr-98 10,390 10,390 10,164
Apr-98 10,570 10,570 10,197
Apr-98 10,390 10,390 10,103
Apr-98 10,280 10,280 9,998
Apr-98 9,950 9,950 9,805
Apr-98 9,990 9,990 9,792
Apr-98 10,040 10,040 9,878
Apr-98 10,220 10,220 10,033
May-98 10,410 10,410 10,116
May-98 10,280 10,280 10,126
May-98 10,160 10,160 10,068
May-98 10,000 10,000 9,971
May-98 9,890 9,890 9,883
May-98 9,940 9,940 10,000
May-98 9,940 9,940 9,986
May-98 10,100 10,100 10,069
May-98 10,050 10,050 10,097
May-98 10,020 10,020 10,083
May-98 10,040 10,040 10,005
May-98 10,020 10,020 9,979
May-98 10,090 10,090 10,012
May-98 10,240 10,240 10,098
May-98 10,230 10,230 10,059
May-98 10,200 10,200 10,021
May-98 10,020 10,020 9,872
May-98 9,860 9,860 9,856
May-98 9,920 9,920 9,905
May-98 9,860 9,860 9,844
Jun-98 9,890 9,890 9,845
Jun-98 9,940 9,940 9,864
Jun-98 9,790 9,790 9,771
Jun-98 9,860 9,860 9,880
Jun-98 10,000 10,000 10,052
Jun-98 10,070 10,070 10,068
Jun-98 10,010 10,010 10,093
Jun-98 10,040 10,040 10,037
Jun-98 9,920 9,920 9,878
Jun-98 9,870 9,870 9,916
Jun-98 9,710 9,710 9,719
Jun-98 9,690 9,690 9,814
Jun-98 9,900 9,900 9,991
Jun-98 9,870 9,870 9,984
Jun-98 9,820 9,820 9,932
Jun-98 9,730 9,730 9,956
Jun-98 9,770 9,770 10,102
Jun-98 10,050 10,050 10,223
Jun-98 10,050 10,050 10,191
Jun-98 10,070 10,070 10,226
Jun-98 10,120 10,120 10,274
Jun-98 10,030 10,030 10,232
Jul-98 10,270 10,250 10,365
Jul-98 10,330 10,310 10,345
Jul-98 10,430 10,410 10,444
Jul-98 10,450 10,420 10,420
Jul-98 10,680 10,660 10,525
Jul-98 10,600 10,570 10,455
Jul-98 10,710 10,680 10,507
Jul-98 10,700 10,670 10,515
Jul-98 10,880 10,850 10,627
Jul-98 10,740 10,710 10,602
Jul-98 10,780 10,750 10,685
Jul-98 10,810 10,780 10,709
Jul-98 10,760 10,730 10,685
Jul-98 10,380 10,350 10,514
Jul-98 10,400 10,380 10,505
Jul-98 10,290 10,270 10,285
Jul-98 10,200 10,180 10,295
Jul-98 10,220 10,200 10,353
Jul-98 10,020 10,000 10,199
Jul-98 10,000 9,990 10,154
Jul-98 10,140 10,130 10,313
Jul-98 10,070 10,060 10,113
Aug-98 9,780 9,770 10,039
Aug-98 9,240 9,240 9,675
Aug-98 9,410 9,410 9,759
Aug-98 9,440 9,440 9,833
Aug-98 9,310 9,310 9,831
Aug-98 9,180 9,170 9,774
Aug-98 8,870 8,860 9,647
Aug-98 9,070 9,060 9,784
Aug-98 8,920 8,910 9,700
Aug-98 8,810 8,800 9,590
Aug-98 9,010 9,000 9,779
Aug-98 9,220 9,210 9,937
Aug-98 9,060 9,040 9,909
Aug-98 8,860 8,850 9,851
Aug-98 8,650 8,640 9,757
Aug-98 8,670 8,660 9,819
Aug-98 8,640 8,640 9,862
Aug-98 8,540 8,540 9,784
Aug-98 8,060 8,060 9,408
Aug-98 7,860 7,860 9,270
Aug-98 7,420 7,410 8,641
Sep-98 7,660 7,650 8,972
Sep-98 7,780 7,770 8,938
Sep-98 7,540 7,530 8,864
Sep-98 7,270 7,260 8,788
Sep-98 7,770 7,760 9,236
Sep-98 7,570 7,560 9,080
Sep-98 7,230 7,220 8,845
Sep-98 7,660 7,650 9,106
Sep-98 7,860 7,850 9,292
Sep-98 8,020 8,010 9,364
Sep-98 8,190 8,180 9,434
Sep-98 7,890 7,880 9,194
Sep-98 7,820 7,810 9,205
Sep-98 7,810 7,800 9,240
Sep-98 7,870 7,860 9,293
Sep-98 8,310 8,300 9,620
Sep-98 7,910 7,900 9,410
Sep-98 7,920 7,910 9,428
Sep-98 7,930 7,920 9,463
Sep-98 7,840 7,830 9,466
Sep-98 7,560 7,550 9,178
Oct-98 7,320 7,310 8,901
Oct-98 7,590 7,580 9,048
Oct-98 7,290 7,280 8,921
Oct-98 7,130 7,120 8,885
Oct-98 6,910 6,900 8,759
Oct-98 6,840 6,840 8,658
Oct-98 7,320 7,310 8,883
Oct-98 7,340 7,330 9,003
Oct-98 7,390 7,380 8,977
Oct-98 7,400 7,400 9,074
Oct-98 7,830 7,820 9,453
Oct-98 8,030 8,010 9,533
Oct-98 8,130 8,120 9,587
Oct-98 8,350 8,340 9,601
Oct-98 8,200 8,190 9,655
Oct-98 8,270 8,260 9,732
Oct-98 8,100 8,090 9,662
Oct-98 8,110 8,100 9,677
Oct-98 7,920 7,910 9,614
Oct-98 8,010 8,010 9,638
Oct-98 8,170 8,170 9,799
Oct-98 8,270 8,270 9,914
Nov-98 8,350 8,340 10,031
Nov-98 8,390 8,390 10,024
Nov-98 8,630 8,620 10,095
Nov-98 8,890 8,880 10,230
Nov-98 8,850 8,840 10,297
Nov-98 8,610 8,600 10,199
Nov-98 8,490 8,490 10,181
Nov-98 8,370 8,360 10,116
Nov-98 8,320 8,310 10,086
Nov-98 8,490 8,480 10,159
Nov-98 8,590 8,580 10,250
Nov-98 8,740 8,730 10,281
Nov-98 8,660 8,650 10,328
Nov-98 8,720 8,710 10,401
Nov-98 8,810 8,800 10,500
Nov-98 9,000 8,990 10,722
Nov-98 8,910 8,900 10,675
Nov-98 8,950 8,940 10,710
Nov-98 8,910 8,890 10,759
Nov-98 8,650 8,640 10,501
Dec-98 8,670 8,660 10,606
Dec-98 8,780 8,770 10,569
Dec-98 8,570 8,560 10,379
Dec-98 8,870 8,860 10,619
Dec-98 8,840 8,830 10,718
Dec-98 8,670 8,660 10,661
Dec-98 8,640 8,620 10,680
Dec-98 8,520 8,510 10,513
Dec-98 8,410 8,400 10,526
Dec-98 8,260 8,250 10,298
Dec-98 8,400 8,380 10,493
Dec-98 8,380 8,360 10,485
Dec-98 8,780 8,760 10,648
Dec-98 8,780 8,760 10,721
Dec-98 8,890 8,870 10,854
Dec-98 8,790 8,770 10,861
Dec-98 8,920 8,900 11,086
Dec-98 8,890 8,870 11,066
Dec-98 8,860 8,840 11,059
Dec-98 8,970 8,950 11,206
Dec-98 9,020 9,000 11,117
Dec-98 8,910 8,890 11,093
Jan-99 8,930 8,910 11,082
Jan-99 9,020 8,990 11,233
Jan-99 9,220 9,200 11,482
Jan-99 9,340 9,320 11,458
Jan-99 9,410 9,390 11,506
Jan-99 9,300 9,280 11,405
Jan-99 9,050 9,020 11,185
Jan-99 8,970 8,940 11,139
Jan-99 8,650 8,630 10,939
Jan-99 8,950 8,930 11,219
Jan-99 8,850 8,830 11,288
Jan-99 8,890 8,870 11,340
Jan-99 8,770 8,750 11,146
Jan-99 8,620 8,600 11,056
Jan-99 8,710 8,690 11,135
Jan-99 8,680 8,650 11,301
Jan-99 8,390 8,370 11,218
Jan-99 8,590 8,570 11,419
Jan-99 8,760 8,740 11,548
Feb-99 8,590 8,580 11,488
Feb-99 8,490 8,470 11,388
Feb-99 8,550 8,540 11,479
Feb-99 8,320 8,310 11,266
Feb-99 8,320 8,310 11,184
Feb-99 8,240 8,220 11,224
Feb-99 8,150 8,130 10,975
Feb-99 8,240 8,230 11,041
Feb-99 8,510 8,500 11,317
Feb-99 8,400 8,380 11,101
Feb-99 8,560 8,540 11,207
Feb-99 8,570 8,550 11,046
Feb-99 8,690 8,670 11,165
Feb-99 8,640 8,620 11,183
Feb-99 8,900 8,880 11,480
Feb-99 8,880 8,850 11,471
Feb-99 8,610 8,590 11,311
Feb-99 8,660 8,640 11,235
Feb-99 8,720 8,710 11,175
Mar-99 8,820 8,800 11,155
Mar-99 8,800 8,780 11,059
Mar-99 8,780 8,760 11,079
Mar-99 8,900 8,880 11,250
Mar-99 9,080 9,060 11,510
Mar-99 9,040 9,020 11,575
Mar-99 9,100 9,080 11,549
Mar-99 9,250 9,230 11,613
Mar-99 9,300 9,280 11,710
Mar-99 9,260 9,240 11,682
Mar-99 9,330 9,310 11,797
Mar-99 9,150 9,130 11,789
Mar-99 9,040 9,020 11,712
Mar-99 9,300 9,280 11,881
Mar-99 9,120 9,100 11,725
Mar-99 9,100 9,080 11,704
Mar-99 8,860 8,840 11,390
Mar-99 8,820 8,800 11,448
Mar-99 8,920 8,900 11,641
Mar-99 8,800 8,780 11,576
Mar-99 8,980 8,960 11,823
Mar-99 8,820 8,800 11,738
Mar-99 8,770 8,740 11,608
</TABLE>
<TABLE>
<CAPTION>
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TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-1-98)
<S> <C> <C>
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Banking Fund -12.30% -12.60%
S&P 500-TM- Composite Stock Price Index 16.08% 16.08%
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</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
4
<PAGE>
BASIC MATERIALS FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES ENGAGED IN THE
MINING, MANUFACTURE, OR SALE OF BASIC MATERIALS, SUCH AS LUMBER, STEEL, IRON,
ALUMINUM, CONCRETE, CHEMICALS AND OTHER BASIC BUILDING AND MANUFACTURING
MATERIALS.
INCEPTION: APRIL 1, 1998
In the Basic Materials sector, the Fund's two largest holdings, chemical
companies Du Pont (E.I.) de Nemours and Dow Chemical, underperformed the overall
market due to price declines in petrochemicals and plastics and decreased demand
because of the economic crisis in Asia. Lack of Asian demand also drove paper
and aluminum prices lower. As a result, the Basic Materials Fund posted a
- -22.50% return, parallel to the overall sector, yet lower than the broad market
as represented by the S&P 500-TM- Index.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BASIC MATERIALS S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 10,130 10,107
Apr-98 10,120 10,131
Apr-98 10,030 10,119
Apr-98 10,120 10,013
Apr-98 10,110 9,941
Apr-98 10,190 10,023
Apr-98 10,280 10,014
Apr-98 10,560 10,069
Apr-98 10,560 10,101
Apr-98 10,450 10,000
Apr-98 10,530 10,131
Apr-98 10,470 10,140
Apr-98 10,530 10,164
Apr-98 10,510 10,197
Apr-98 10,470 10,103
Apr-98 10,350 9,998
Apr-98 10,150 9,805
Apr-98 10,140 9,792
Apr-98 10,170 9,878
Apr-98 10,280 10,033
May-98 10,360 10,116
May-98 10,450 10,126
May-98 10,410 10,068
May-98 10,320 9,971
May-98 10,210 9,883
May-98 10,290 10,000
May-98 10,490 9,986
May-98 10,530 10,069
May-98 10,570 10,097
May-98 10,570 10,083
May-98 10,470 10,005
May-98 10,310 9,979
May-98 10,310 10,012
May-98 10,370 10,098
May-98 10,310 10,059
May-98 10,300 10,021
May-98 10,040 9,872
May-98 9,950 9,856
May-98 9,910 9,905
May-98 9,800 9,844
Jun-98 9,740 9,845
Jun-98 9,740 9,864
Jun-98 9,750 9,771
Jun-98 9,810 9,880
Jun-98 9,930 10,052
Jun-98 10,000 10,068
Jun-98 9,880 10,093
Jun-98 9,690 10,037
Jun-98 9,490 9,878
Jun-98 9,420 9,916
Jun-98 9,150 9,719
Jun-98 9,300 9,814
Jun-98 9,440 9,991
Jun-98 9,390 9,984
Jun-98 9,290 9,932
Jun-98 9,210 9,956
Jun-98 9,250 10,102
Jun-98 9,300 10,223
Jun-98 9,230 10,191
Jun-98 9,310 10,226
Jun-98 9,230 10,274
Jun-98 9,330 10,232
Jul-98 9,380 10,365
Jul-98 9,310 10,345
Jul-98 9,340 10,444
Jul-98 9,280 10,420
Jul-98 9,290 10,525
Jul-98 9,020 10,455
Jul-98 8,910 10,507
Jul-98 8,920 10,515
Jul-98 9,030 10,627
Jul-98 9,010 10,602
Jul-98 9,140 10,685
Jul-98 9,120 10,709
Jul-98 9,070 10,685
Jul-98 8,970 10,514
Jul-98 8,940 10,505
Jul-98 8,640 10,285
Jul-98 8,610 10,295
Jul-98 8,590 10,353
Jul-98 8,500 10,199
Jul-98 8,510 10,154
Jul-98 8,600 10,313
Jul-98 8,440 10,113
Aug-98 8,370 10,039
Aug-98 8,170 9,675
Aug-98 8,180 9,759
Aug-98 8,220 9,833
Aug-98 8,330 9,831
Aug-98 8,260 9,774
Aug-98 8,090 9,647
Aug-98 8,210 9,784
Aug-98 7,990 9,700
Aug-98 7,790 9,590
Aug-98 7,940 9,779
Aug-98 8,060 9,937
Aug-98 8,070 9,909
Aug-98 8,070 9,851
Aug-98 8,030 9,757
Aug-98 8,170 9,819
Aug-98 8,150 9,862
Aug-98 8,030 9,784
Aug-98 7,780 9,408
Aug-98 7,690 9,270
Aug-98 7,370 8,641
Sep-98 7,420 8,972
Sep-98 7,440 8,938
Sep-98 7,420 8,864
Sep-98 7,440 8,788
Sep-98 7,680 9,236
Sep-98 7,670 9,080
Sep-98 7,440 8,845
Sep-98 7,570 9,106
Sep-98 7,750 9,292
Sep-98 7,850 9,364
Sep-98 7,890 9,434
Sep-98 7,690 9,194
Sep-98 7,620 9,205
Sep-98 7,620 9,240
Sep-98 7,660 9,293
Sep-98 7,910 9,620
Sep-98 7,880 9,410
Sep-98 7,960 9,428
Sep-98 8,140 9,463
Sep-98 8,060 9,466
Sep-98 7,760 9,178
Oct-98 7,630 8,901
Oct-98 7,750 9,048
Oct-98 7,700 8,921
Oct-98 7,730 8,885
Oct-98 7,820 8,759
Oct-98 7,810 8,658
Oct-98 7,970 8,883
Oct-98 8,090 9,003
Oct-98 7,750 8,977
Oct-98 7,600 9,074
Oct-98 7,920 9,453
Oct-98 8,130 9,533
Oct-98 8,160 9,587
Oct-98 8,230 9,601
Oct-98 8,080 9,655
Oct-98 8,020 9,732
Oct-98 7,830 9,662
Oct-98 7,820 9,677
Oct-98 7,790 9,614
Oct-98 7,720 9,638
Oct-98 7,820 9,799
Oct-98 8,040 9,914
Nov-98 8,100 10,031
Nov-98 8,210 10,024
Nov-98 8,260 10,095
Nov-98 8,470 10,230
Nov-98 8,450 10,297
Nov-98 8,350 10,199
Nov-98 8,210 10,181
Nov-98 8,110 10,116
Nov-98 8,080 10,086
Nov-98 8,210 10,159
Nov-98 8,210 10,250
Nov-98 8,230 10,281
Nov-98 8,210 10,328
Nov-98 8,180 10,401
Nov-98 8,220 10,500
Nov-98 8,260 10,722
Nov-98 8,330 10,675
Nov-98 8,300 10,710
Nov-98 8,310 10,759
Nov-98 8,150 10,501
Dec-98 8,060 10,606
Dec-98 8,000 10,569
Dec-98 7,820 10,379
Dec-98 7,850 10,619
Dec-98 7,950 10,718
Dec-98 7,840 10,661
Dec-98 7,770 10,680
Dec-98 7,710 10,513
Dec-98 7,650 10,526
Dec-98 7,680 10,298
Dec-98 7,600 10,493
Dec-98 7,500 10,485
Dec-98 7,670 10,648
Dec-98 7,530 10,721
Dec-98 7,610 10,854
Dec-98 7,540 10,861
Dec-98 7,660 11,086
Dec-98 7,730 11,066
Dec-98 7,730 11,059
Dec-98 7,810 11,206
Dec-98 7,770 11,117
Dec-98 7,810 11,093
Jan-99 7,810 11,082
Jan-99 7,920 11,233
Jan-99 8,080 11,482
Jan-99 8,020 11,458
Jan-99 8,320 11,506
Jan-99 8,300 11,405
Jan-99 8,120 11,185
Jan-99 8,000 11,139
Jan-99 7,820 10,939
Jan-99 8,000 11,219
Jan-99 7,820 11,288
Jan-99 7,700 11,340
Jan-99 7,680 11,146
Jan-99 7,520 11,056
Jan-99 7,680 11,135
Jan-99 7,720 11,301
Jan-99 7,610 11,218
Jan-99 7,600 11,419
Jan-99 7,570 11,548
Feb-99 7,610 11,488
Feb-99 7,650 11,388
Feb-99 7,640 11,479
Feb-99 7,750 11,266
Feb-99 7,880 11,184
Feb-99 7,840 11,224
Feb-99 7,720 10,975
Feb-99 7,730 11,041
Feb-99 7,720 11,317
Feb-99 7,680 11,101
Feb-99 7,560 11,207
Feb-99 7,470 11,046
Feb-99 7,490 11,165
Feb-99 7,560 11,183
Feb-99 7,720 11,480
Feb-99 7,660 11,471
Feb-99 7,660 11,311
Feb-99 7,620 11,235
Feb-99 7,610 11,175
Mar-99 7,590 11,155
Mar-99 7,490 11,059
Mar-99 7,450 11,079
Mar-99 7,510 11,250
Mar-99 7,690 11,510
Mar-99 7,650 11,575
Mar-99 7,530 11,549
Mar-99 7,730 11,613
Mar-99 7,770 11,710
Mar-99 7,760 11,682
Mar-99 7,750 11,797
Mar-99 7,790 11,789
Mar-99 7,800 11,712
Mar-99 7,950 11,881
Mar-99 7,940 11,725
Mar-99 7,920 11,704
Mar-99 7,750 11,390
Mar-99 7,730 11,448
Mar-99 7,830 11,641
Mar-99 7,690 11,576
Mar-99 7,870 11,823
Mar-99 7,780 11,738
Mar-99 7,750 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
--------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-14-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Basic Materials Fund -22.50% -26.89%
S&P 500-TM- Composite Stock Price Index 16.08% 15.29%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
5
<PAGE>
BIOTECHNOLOGY FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES THAT ARE
INVOLVED IN THE BIOTECHNOLOGY INDUSTRY, INCLUDING COMPANIES INVOLVED IN RESEARCH
AND DEVELOPMENT, GENETIC OR OTHER BIOLOGICAL ENGINEERING, AND IN THE DESIGN,
MANUFACTURE, OR SALE OF RELATED BIOTECHNOLOGY PRODUCTS OR SERVICES.
INCEPTION: APRIL 1,1998
The highly volatile Biotechnology sector performed well over the reporting
period. Companies such as Amgen and Genentech led the group due to growing
earnings and profitable product pipelines. A more favorable regulatory
environment and the increased demand from an aging population bode well for the
biotechnology sector. The Biotechnology Fund outperformed the S&P 500-TM- with a
28.10% return compared to 16.08% for the period ended March 31, 1999.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BIOTECH BIOTECH ADV S&P 500
<S> <C> <C> <C>
Apr-98 10,000 10,000 10,000
Apr-98 10,050 10,050 10,107
Apr-98 9,960 9,960 10,131
Apr-98 9,930 9,930 10,119
Apr-98 9,790 9,790 10,013
Apr-98 9,700 9,700 9,941
Apr-98 9,690 9,690 10,023
Apr-98 9,610 9,610 10,014
Apr-98 9,650 9,650 10,069
Apr-98 9,590 9,590 10,101
Apr-98 9,560 9,560 10,000
Apr-98 9,720 9,720 10,131
Apr-98 9,690 9,690 10,140
Apr-98 9,610 9,610 10,164
Apr-98 9,670 9,670 10,197
Apr-98 9,590 9,590 10,103
Apr-98 9,520 9,520 9,998
Apr-98 9,280 9,280 9,805
Apr-98 9,460 9,460 9,792
Apr-98 9,550 9,550 9,878
Apr-98 9,750 9,750 10,033
May-98 9,690 9,690 10,116
May-98 9,790 9,790 10,126
May-98 9,770 9,770 10,068
May-98 9,640 9,640 9,971
May-98 9,600 9,600 9,883
May-98 9,780 9,780 10,000
May-98 9,590 9,590 9,986
May-98 9,710 9,710 10,069
May-98 9,710 9,710 10,097
May-98 9,670 9,670 10,083
May-98 9,630 9,630 10,005
May-98 9,670 9,670 9,979
May-98 9,620 9,620 10,012
May-98 9,540 9,540 10,098
May-98 9,490 9,490 10,059
May-98 9,500 9,500 10,021
May-98 9,300 9,300 9,872
May-98 9,250 9,250 9,856
May-98 9,340 9,340 9,905
May-98 9,300 9,300 9,844
Jun-98 9,150 9,150 9,845
Jun-98 9,150 9,150 9,864
Jun-98 9,080 9,080 9,771
Jun-98 9,070 9,070 9,880
Jun-98 9,170 9,170 10,052
Jun-98 9,200 9,200 10,068
Jun-98 9,250 9,250 10,093
Jun-98 9,150 9,150 10,037
Jun-98 9,040 9,040 9,878
Jun-98 9,070 9,070 9,916
Jun-98 8,900 8,900 9,719
Jun-98 9,090 9,090 9,814
Jun-98 9,150 9,150 9,991
Jun-98 9,130 9,130 9,984
Jun-98 9,020 9,020 9,932
Jun-98 8,970 8,970 9,956
Jun-98 9,140 9,140 10,102
Jun-98 9,380 9,380 10,223
Jun-98 9,220 9,220 10,191
Jun-98 9,260 9,260 10,226
Jun-98 9,210 9,210 10,274
Jun-98 9,090 9,090 10,232
Jul-98 9,020 8,960 10,365
Jul-98 9,020 8,970 10,345
Jul-98 8,990 8,940 10,444
Jul-98 9,010 8,960 10,420
Jul-98 9,180 9,130 10,525
Jul-98 9,150 9,080 10,455
Jul-98 9,220 9,150 10,507
Jul-98 9,220 9,150 10,515
Jul-98 9,280 9,200 10,627
Jul-98 9,430 9,350 10,602
Jul-98 9,470 9,390 10,685
Jul-98 9,520 9,440 10,709
Jul-98 9,640 9,560 10,685
Jul-98 9,480 9,410 10,514
Jul-98 9,320 9,240 10,505
Jul-98 9,420 9,340 10,285
Jul-98 9,360 9,280 10,295
Jul-98 9,450 9,360 10,353
Jul-98 9,320 9,240 10,199
Jul-98 9,400 9,320 10,154
Jul-98 9,510 9,420 10,313
Jul-98 9,220 9,140 10,113
Aug-98 8,990 8,910 10,039
Aug-98 8,740 8,660 9,675
Aug-98 8,730 8,660 9,759
Aug-98 8,820 8,740 9,833
Aug-98 9,010 8,930 9,831
Aug-98 9,050 8,970 9,774
Aug-98 8,690 8,610 9,647
Aug-98 8,830 8,760 9,784
Aug-98 8,660 8,580 9,700
Aug-98 8,650 8,570 9,590
Aug-98 8,710 8,640 9,779
Aug-98 8,870 8,790 9,937
Aug-98 8,920 8,830 9,909
Aug-98 8,800 8,720 9,851
Aug-98 8,600 8,520 9,757
Aug-98 8,650 8,570 9,819
Aug-98 8,600 8,520 9,862
Aug-98 8,400 8,330 9,784
Aug-98 8,070 8,000 9,408
Aug-98 7,740 7,670 9,270
Aug-98 7,250 7,190 8,641
Sep-98 7,390 7,330 8,972
Sep-98 7,570 7,510 8,938
Sep-98 7,470 7,400 8,864
Sep-98 7,600 7,530 8,788
Sep-98 8,310 8,240 9,236
Sep-98 7,870 7,800 9,080
Sep-98 8,130 8,070 8,845
Sep-98 8,390 8,320 9,106
Sep-98 8,360 8,300 9,292
Sep-98 8,400 8,340 9,364
Sep-98 8,490 8,430 9,434
Sep-98 8,460 8,390 9,194
Sep-98 8,620 8,550 9,205
Sep-98 8,870 8,800 9,240
Sep-98 9,190 9,110 9,293
Sep-98 9,420 9,340 9,620
Sep-98 9,100 9,020 9,410
Sep-98 9,190 9,120 9,428
Sep-98 9,300 9,230 9,463
Sep-98 9,230 9,160 9,466
Sep-98 9,020 8,950 9,178
Oct-98 8,630 8,560 8,901
Oct-98 8,960 8,890 9,048
Oct-98 8,580 8,520 8,921
Oct-98 8,640 8,570 8,885
Oct-98 8,320 8,250 8,759
Oct-98 8,150 8,090 8,658
Oct-98 8,650 8,580 8,883
Oct-98 8,780 8,720 9,003
Oct-98 8,490 8,430 8,977
Oct-98 8,720 8,650 9,074
Oct-98 8,900 8,830 9,453
Oct-98 8,910 8,840 9,533
Oct-98 9,150 9,080 9,587
Oct-98 9,150 9,070 9,601
Oct-98 9,050 8,970 9,655
Oct-98 9,200 9,130 9,732
Oct-98 9,350 9,280 9,662
Oct-98 9,520 9,440 9,677
Oct-98 9,240 9,170 9,614
Oct-98 9,420 9,330 9,638
Oct-98 9,780 9,690 9,799
Oct-98 9,650 9,560 9,914
Nov-98 9,840 9,750 10,031
Nov-98 9,880 9,790 10,024
Nov-98 9,930 9,840 10,095
Nov-98 10,050 9,950 10,230
Nov-98 10,150 10,050 10,297
Nov-98 10,120 10,020 10,199
Nov-98 10,030 9,940 10,181
Nov-98 10,010 9,910 10,116
Nov-98 9,990 9,900 10,086
Nov-98 10,020 9,920 10,159
Nov-98 9,940 9,840 10,250
Nov-98 9,840 9,740 10,281
Nov-98 9,970 9,870 10,328
Nov-98 10,140 10,040 10,401
Nov-98 10,100 10,000 10,500
Nov-98 10,250 10,150 10,722
Nov-98 10,020 9,930 10,675
Nov-98 10,030 9,930 10,710
Nov-98 10,140 10,040 10,759
Nov-98 9,940 9,840 10,501
Dec-98 9,980 9,880 10,606
Dec-98 10,190 10,100 10,569
Dec-98 10,050 9,950 10,379
Dec-98 10,280 10,190 10,619
Dec-98 10,400 10,310 10,718
Dec-98 10,430 10,340 10,661
Dec-98 10,590 10,500 10,680
Dec-98 10,420 10,330 10,513
Dec-98 10,490 10,400 10,526
Dec-98 10,260 10,170 10,298
Dec-98 10,360 10,270 10,493
Dec-98 10,560 10,470 10,485
Dec-98 10,530 10,430 10,648
Dec-98 10,680 10,590 10,721
Dec-98 11,110 11,010 10,854
Dec-98 11,240 11,140 10,861
Dec-98 11,150 11,050 11,086
Dec-98 11,120 11,020 11,066
Dec-98 11,350 11,250 11,059
Dec-98 11,390 11,290 11,206
Dec-98 11,510 11,400 11,117
Dec-98 11,830 11,720 11,093
Jan-99 11,710 11,600 11,082
Jan-99 11,730 11,620 11,233
Jan-99 11,750 11,650 11,482
Jan-99 11,790 11,680 11,458
Jan-99 11,800 11,690 11,506
Jan-99 11,710 11,600 11,405
Jan-99 11,710 11,600 11,185
Jan-99 11,840 11,730 11,139
Jan-99 11,640 11,540 10,939
Jan-99 12,130 12,020 11,219
Jan-99 12,090 11,980 11,288
Jan-99 12,010 11,900 11,340
Jan-99 11,790 11,680 11,146
Jan-99 12,030 11,920 11,056
Jan-99 11,970 11,860 11,135
Jan-99 12,140 12,020 11,301
Jan-99 12,240 12,120 11,218
Jan-99 12,450 12,340 11,419
Jan-99 12,690 12,570 11,548
Feb-99 12,590 12,470 11,488
Feb-99 12,530 12,410 11,388
Feb-99 12,570 12,450 11,479
Feb-99 12,320 12,200 11,266
Feb-99 12,000 11,890 11,184
Feb-99 12,090 11,980 11,224
Feb-99 11,680 11,560 10,975
Feb-99 11,670 11,560 11,041
Feb-99 12,070 11,960 11,317
Feb-99 11,790 11,680 11,101
Feb-99 11,910 11,800 11,207
Feb-99 11,720 11,610 11,046
Feb-99 11,840 11,730 11,165
Feb-99 11,810 11,690 11,183
Feb-99 11,870 11,760 11,480
Feb-99 12,180 12,060 11,471
Feb-99 11,970 11,850 11,311
Feb-99 11,870 11,750 11,235
Feb-99 11,860 11,740 11,175
Mar-99 12,040 11,920 11,155
Mar-99 12,040 11,910 11,059
Mar-99 11,930 11,810 11,079
Mar-99 12,170 12,040 11,250
Mar-99 12,320 12,190 11,510
Mar-99 12,560 12,430 11,575
Mar-99 12,490 12,350 11,549
Mar-99 12,810 12,670 11,613
Mar-99 13,090 12,950 11,710
Mar-99 13,050 12,910 11,682
Mar-99 13,260 13,110 11,797
Mar-99 13,150 13,000 11,789
Mar-99 13,090 12,940 11,712
Mar-99 13,410 13,260 11,881
Mar-99 13,200 13,050 11,725
Mar-99 13,160 13,010 11,704
Mar-99 12,720 12,570 11,390
Mar-99 12,640 12,490 11,448
Mar-99 12,990 12,830 11,641
Mar-99 12,890 12,730 11,576
Mar-99 13,090 12,930 11,823
Mar-99 13,010 12,850 11,738
Mar-99 12,810 12,660 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-1-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Biotechnology Fund 28.10% 26.60%
S&P 500-TM- Composite Stock Price Index 16.08% 16.08%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
6
<PAGE>
CONSUMER PRODUCTS FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES ENGAGED IN
MANUFACTURING FINISHED GOODS AND SERVICES BOTH DOMESTICALLY AND INTERNATIONALLY.
INCEPTION: JULY 6, 1998
The lackluster performance of companies like Procter & Gamble and Gillette in
the Consumer Products sector, which were among the Fund's top holdings, can be
attributed to a weakened international economic environment. Slow sales and
earnings growth negatively affected many household consumer product companies,
causing the sector to lag the performance of the overall market. The Fund's
total return for the period ended March 31,1999 was -2.90%.
CUMULATIVE FUND PERFORMANCE: JULY 6, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CONS PROD S&P 500
<S> <C> <C>
Jul-98 10,000 10,000
Jul-98 9,920 10,032
Jul-98 9,960 9,932
Jul-98 9,810 10,062
Jul-98 9,970 10,071
Jul-98 9,870 10,095
Jul-98 9,960 10,128
Jul-98 9,880 10,034
Jul-98 9,940 9,930
Jul-98 9,840 9,738
Jul-98 9,810 9,725
Jul-98 9,650 9,811
Jul-98 9,590 9,964
Jul-98 9,500 10,047
Jul-98 9,490 10,057
Jul-98 9,540 9,999
Jul-98 9,440 9,903
Jul-98 9,380 9,815
Jul-98 9,330 9,932
Jul-98 9,040 9,918
Aug-98 8,920 10,000
Aug-98 8,760 10,028
Aug-98 8,860 10,015
Aug-98 8,800 9,937
Aug-98 8,730 9,911
Aug-98 8,740 9,944
Aug-98 8,630 10,030
Aug-98 8,740 9,990
Aug-98 8,620 9,953
Aug-98 8,590 9,805
Aug-98 8,730 9,789
Aug-98 8,780 9,837
Aug-98 8,680 9,777
Aug-98 8,600 9,778
Aug-98 8,530 9,796
Aug-98 8,610 9,704
Aug-98 8,650 9,813
Aug-98 8,540 9,983
Aug-98 8,210 10,000
Aug-98 8,140 10,024
Aug-98 7,710 9,969
Sep-98 7,970 9,810
Sep-98 7,820 9,848
Sep-98 7,680 9,653
Sep-98 7,650 9,748
Sep-98 8,070 9,922
Sep-98 7,720 9,916
Sep-98 7,460 9,865
Sep-98 7,560 9,888
Sep-98 7,740 10,034
Sep-98 7,790 10,154
Sep-98 7,710 10,121
Sep-98 7,390 10,156
Sep-98 7,420 10,204
Sep-98 7,390 10,162
Sep-98 7,500 10,294
Sep-98 7,800 10,275
Sep-98 7,680 10,372
Sep-98 7,600 10,349
Sep-98 7,740 10,454
Sep-98 7,570 10,384
Sep-98 7,370 10,435
Oct-98 7,220 10,443
Oct-98 7,420 10,554
Oct-98 7,300 10,529
Oct-98 7,350 10,612
Oct-98 7,380 10,636
Oct-98 7,350 10,613
Oct-98 7,440 10,442
Oct-98 7,630 10,433
Oct-98 7,670 10,215
Oct-98 7,690 10,225
Oct-98 8,040 10,283
Oct-98 8,150 10,130
Oct-98 8,180 10,085
Oct-98 8,120 10,243
Oct-98 8,180 10,044
Oct-98 8,280 9,970
Oct-98 8,240 9,609
Oct-98 8,330 9,692
Oct-98 8,360 9,766
Oct-98 8,210 9,764
Oct-98 8,340 9,708
Oct-98 8,490 9,581
Nov-98 8,620 9,717
Nov-98 8,730 9,634
Nov-98 8,720 9,525
Nov-98 8,810 9,712
Nov-98 8,940 9,870
Nov-98 8,840 9,841
Nov-98 8,870 9,784
Nov-98 8,820 9,690
Nov-98 8,800 9,753
Nov-98 8,860 9,795
Nov-98 8,960 9,717
Nov-98 8,890 9,344
Nov-98 8,880 9,207
Nov-98 8,960 8,582
Nov-98 9,050 8,911
Nov-98 9,180 8,877
Nov-98 9,050 8,804
Nov-98 8,960 8,729
Nov-98 8,950 9,173
Nov-98 8,840 9,018
Dec-98 8,760 8,785
Dec-98 8,780 9,044
Dec-98 8,680 9,229
Dec-98 8,810 9,300
Dec-98 8,820 9,370
Dec-98 8,700 9,132
Dec-98 8,680 9,143
Dec-98 8,600 9,177
Dec-98 8,560 9,230
Dec-98 8,530 9,555
Dec-98 8,670 9,345
Dec-98 8,610 9,364
Dec-98 8,690 9,399
Dec-98 8,700 9,402
Dec-98 8,760 9,115
Dec-98 8,930 8,841
Dec-98 9,150 8,986
Dec-98 9,150 8,860
Dec-98 9,130 8,824
Dec-98 9,280 8,700
Dec-98 9,200 8,599
Dec-98 9,270 8,822
Jan-99 9,190 8,942
Jan-99 9,200 8,916
Jan-99 9,330 9,012
Jan-99 9,200 9,388
Jan-99 9,160 9,468
Jan-99 9,200 9,522
Jan-99 9,210 9,536
Jan-99 9,020 9,589
Jan-99 8,900 9,666
Jan-99 9,020 9,596
Jan-99 9,010 9,611
Jan-99 8,940 9,548
Jan-99 8,920 9,573
Jan-99 8,890 9,733
Jan-99 8,900 9,847
Jan-99 8,930 9,963
Jan-99 9,030 9,956
Jan-99 9,300 10,026
Jan-99 9,450 10,161
Feb-99 9,510 10,226
Feb-99 9,380 10,130
Feb-99 9,340 10,112
Feb-99 9,220 10,047
Feb-99 9,200 10,017
Feb-99 9,110 10,089
Feb-99 9,040 10,180
Feb-99 9,270 10,211
Feb-99 9,410 10,257
Feb-99 9,310 10,330
Feb-99 9,440 10,428
Feb-99 9,460 10,649
Feb-99 9,460 10,603
Feb-99 9,380 10,637
Feb-99 9,600 10,686
Feb-99 9,500 10,429
Feb-99 9,360 10,534
Feb-99 9,280 10,497
Feb-99 9,240 10,308
Mar-99 9,230 10,547
Mar-99 9,360 10,645
Mar-99 9,310 10,588
Mar-99 9,400 10,607
Mar-99 9,580 10,442
Mar-99 9,560 10,454
Mar-99 9,530 10,228
Mar-99 9,620 10,422
Mar-99 9,670 10,414
Mar-99 9,620 10,576
Mar-99 9,610 10,648
Mar-99 9,650 10,781
Mar-99 9,610 10,787
Mar-99 9,630 11,011
Mar-99 9,670 10,991
Mar-99 9,680 10,984
Mar-99 9,460 11,130
Mar-99 9,580 11,041
Mar-99 9,910 11,017
Mar-99 9,820 11,007
Mar-99 9,940 11,156
Mar-99 9,810 11,403
Mar-99 9,710 11,115
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
--------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(7-6-98) (8-17-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Consumer Products Fund -2.90% 11.11%
S&P 500-TM- Composite Stock Price Index 11.15% 18.70%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
7
<PAGE>
ELECTRONICS FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES INVOLVED IN THE
ELECTRONICS SECTOR, INCLUDING SEMICONDUCTOR MANUFACTURERS AND DISTRIBUTORS, AND
MAKERS AND VENDORS OF OTHER ELECTRONIC COMPONENTS AND DEVICES.
INCEPTION: APRIL 1, 1998
Despite a weak economic environment in the Asia/Pacific region, which accounts
for roughly 45% of total semiconductor revenues, the Electronics sector, led by
Intel, EMC Corp., and Texas Instruments, well outperformed the broader markets.
This was predominantly due to a strong microprocessor demand during the last
part of 1998 and early 1999. The Fund's total return for the period ended March
31,1999 was 40.20%.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ELECTRONICS S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 9,980 10,107
Apr-98 9,860 10,131
Apr-98 9,700 10,119
Apr-98 9,330 10,013
Apr-98 9,390 9,941
Apr-98 9,370 10,023
Apr-98 9,390 10,014
Apr-98 9,620 10,069
Apr-98 9,880 10,101
Apr-98 9,720 10,000
Apr-98 9,760 10,131
Apr-98 10,040 10,140
Apr-98 10,240 10,164
Apr-98 10,470 10,197
Apr-98 10,290 10,103
Apr-98 10,360 9,998
Apr-98 10,050 9,805
Apr-98 10,060 9,792
Apr-98 10,160 9,878
Apr-98 10,260 10,033
May-98 10,330 10,116
May-98 10,320 10,126
May-98 10,320 10,068
May-98 10,200 9,971
May-98 10,110 9,883
May-98 10,340 10,000
May-98 10,160 9,986
May-98 10,260 10,069
May-98 10,330 10,097
May-98 10,160 10,083
May-98 9,770 10,005
May-98 9,730 9,979
May-98 9,750 10,012
May-98 9,510 10,098
May-98 9,320 10,059
May-98 9,250 10,021
May-98 9,170 9,872
May-98 9,110 9,856
May-98 9,120 9,905
May-98 8,880 9,844
Jun-98 8,580 9,845
Jun-98 8,680 9,864
Jun-98 8,440 9,771
Jun-98 8,650 9,880
Jun-98 8,740 10,052
Jun-98 8,870 10,068
Jun-98 9,020 10,093
Jun-98 8,670 10,037
Jun-98 8,470 9,878
Jun-98 8,360 9,916
Jun-98 8,150 9,719
Jun-98 8,520 9,814
Jun-98 8,390 9,991
Jun-98 8,470 9,984
Jun-98 8,430 9,932
Jun-98 8,610 9,956
Jun-98 8,820 10,102
Jun-98 9,020 10,223
Jun-98 8,860 10,191
Jun-98 8,870 10,226
Jun-98 8,960 10,274
Jun-98 8,850 10,232
Jul-98 8,990 10,365
Jul-98 8,820 10,345
Jul-98 8,840 10,444
Jul-98 9,030 10,420
Jul-98 9,120 10,525
Jul-98 9,090 10,455
Jul-98 9,120 10,507
Jul-98 9,220 10,515
Jul-98 9,130 10,627
Jul-98 9,540 10,602
Jul-98 9,570 10,685
Jul-98 9,500 10,709
Jul-98 9,330 10,685
Jul-98 9,290 10,514
Jul-98 9,140 10,505
Jul-98 8,990 10,285
Jul-98 8,950 10,295
Jul-98 9,010 10,353
Jul-98 9,050 10,199
Jul-98 8,890 10,154
Jul-98 9,180 10,313
Jul-98 9,050 10,113
Aug-98 9,110 10,039
Aug-98 8,910 9,675
Aug-98 9,010 9,759
Aug-98 9,360 9,833
Aug-98 9,510 9,831
Aug-98 9,380 9,774
Aug-98 9,120 9,647
Aug-98 9,310 9,784
Aug-98 9,140 9,700
Aug-98 9,160 9,590
Aug-98 9,470 9,779
Aug-98 9,740 9,937
Aug-98 9,440 9,909
Aug-98 9,170 9,851
Aug-98 9,020 9,757
Aug-98 8,980 9,819
Aug-98 9,000 9,862
Aug-98 8,790 9,784
Aug-98 8,330 9,408
Aug-98 8,050 9,270
Aug-98 7,350 8,641
Sep-98 7,790 8,972
Sep-98 7,760 8,938
Sep-98 7,650 8,864
Sep-98 7,650 8,788
Sep-98 8,270 9,236
Sep-98 8,070 9,080
Sep-98 7,930 8,845
Sep-98 8,230 9,106
Sep-98 8,380 9,292
Sep-98 8,340 9,364
Sep-98 8,490 9,434
Sep-98 8,280 9,194
Sep-98 8,310 9,205
Sep-98 8,500 9,240
Sep-98 8,460 9,293
Sep-98 8,800 9,620
Sep-98 8,670 9,410
Sep-98 8,800 9,428
Sep-98 8,660 9,463
Sep-98 8,590 9,466
Sep-98 8,300 9,178
Oct-98 7,890 8,901
Oct-98 7,940 9,048
Oct-98 7,520 8,921
Oct-98 7,570 8,885
Oct-98 7,470 8,759
Oct-98 7,430 8,658
Oct-98 7,890 8,883
Oct-98 8,290 9,003
Oct-98 8,080 8,977
Oct-98 8,290 9,074
Oct-98 8,570 9,453
Oct-98 8,640 9,533
Oct-98 8,870 9,587
Oct-98 8,870 9,601
Oct-98 9,090 9,655
Oct-98 9,200 9,732
Oct-98 9,250 9,662
Oct-98 9,340 9,677
Oct-98 9,270 9,614
Oct-98 9,490 9,638
Oct-98 9,760 9,799
Oct-98 9,780 9,914
Nov-98 9,910 10,031
Nov-98 9,740 10,024
Nov-98 10,270 10,095
Nov-98 10,270 10,230
Nov-98 10,380 10,297
Nov-98 10,350 10,199
Nov-98 10,360 10,181
Nov-98 10,650 10,116
Nov-98 10,660 10,086
Nov-98 10,700 10,159
Nov-98 10,810 10,250
Nov-98 10,910 10,281
Nov-98 11,000 10,328
Nov-98 11,280 10,401
Nov-98 11,300 10,500
Nov-98 11,530 10,722
Nov-98 11,350 10,675
Nov-98 11,480 10,710
Nov-98 11,560 10,759
Nov-98 11,190 10,501
Dec-98 11,590 10,606
Dec-98 11,840 10,569
Dec-98 11,820 10,379
Dec-98 12,220 10,619
Dec-98 12,450 10,718
Dec-98 12,540 10,661
Dec-98 12,360 10,680
Dec-98 11,880 10,513
Dec-98 11,920 10,526
Dec-98 11,500 10,298
Dec-98 11,840 10,493
Dec-98 11,720 10,485
Dec-98 12,120 10,648
Dec-98 12,380 10,721
Dec-98 12,660 10,854
Dec-98 12,330 10,861
Dec-98 12,490 11,086
Dec-98 12,470 11,066
Dec-98 12,390 11,059
Dec-98 12,350 11,206
Dec-98 12,530 11,117
Dec-98 12,610 11,093
Jan-99 12,790 11,082
Jan-99 13,310 11,233
Jan-99 13,740 11,482
Jan-99 13,880 11,458
Jan-99 13,930 11,506
Jan-99 14,160 11,405
Jan-99 13,760 11,185
Jan-99 14,150 11,139
Jan-99 13,770 10,939
Jan-99 14,300 11,219
Jan-99 14,410 11,288
Jan-99 14,560 11,340
Jan-99 14,000 11,146
Jan-99 13,890 11,056
Jan-99 13,950 11,135
Jan-99 14,410 11,301
Jan-99 14,120 11,218
Jan-99 14,580 11,419
Jan-99 14,920 11,548
Feb-99 14,670 11,488
Feb-99 14,260 11,388
Feb-99 14,630 11,479
Feb-99 13,920 11,266
Feb-99 13,580 11,184
Feb-99 14,060 11,224
Feb-99 13,330 10,975
Feb-99 13,440 11,041
Feb-99 14,170 11,317
Feb-99 13,760 11,101
Feb-99 13,830 11,207
Feb-99 13,380 11,046
Feb-99 13,620 11,165
Feb-99 13,810 11,183
Feb-99 14,270 11,480
Feb-99 14,360 11,471
Feb-99 14,330 11,311
Feb-99 13,840 11,235
Feb-99 13,030 11,175
Mar-99 13,010 11,155
Mar-99 12,640 11,059
Mar-99 12,750 11,079
Mar-99 12,860 11,250
Mar-99 13,450 11,510
Mar-99 13,940 11,575
Mar-99 13,570 11,549
Mar-99 13,770 11,613
Mar-99 13,750 11,710
Mar-99 13,550 11,682
Mar-99 13,660 11,797
Mar-99 14,010 11,789
Mar-99 14,070 11,712
Mar-99 14,230 11,881
Mar-99 13,870 11,725
Mar-99 13,680 11,704
Mar-99 13,230 11,390
Mar-99 13,530 11,448
Mar-99 13,810 11,641
Mar-99 13,650 11,576
Mar-99 14,190 11,823
Mar-99 14,030 11,738
Mar-99 11,421 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-2-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Electronics Fund 40.20% 39.88%
S&P 500-TM- Composite Stock Price Index 16.08% 14.85%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
8
<PAGE>
ENERGY FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES INVOLVED IN THE
ENERGY FIELD, INCLUDING THE EXPLORATION, PRODUCTION AND DEVELOPMENT OF OIL, GAS,
COAL AND ALTERNATIVE SOURCES OF ENERGY.
INCEPTION: APRIL 21, 1998
Merger activity was high in the Energy sector as firms scrambled to remain
profitable while oil prices plunged to the lowest inflation adjusted levels in
decades. Specifically, oil prices dropped from near $18 a barrel at the end of
1997 to a low of approximately $11 a barrel in December 1998. Mergers during the
period included British Petroleum Company's acquisition of Amoco, and Exxon
Corporation's purchase of Mobil in a deal that reunites two big chunks of the
old Standard Oil Trust. In March, oil stocks rallied as newly formed BP Amoco
Plc., the world's third largest publicly traded oil company, agreed to buy
Atlantic Richfield creating the largest oil refiner and producer in the U.S. In
addition, members of OPEC held a March conference in Vienna and announced plans
to curtail national oil outputs as an effort to stabilize the world's sagging
oil prices. The Fund's total return for the period ended March 31,1999 was
- -10.10%.
CUMULATIVE FUND PERFORMANCE: APRIL 21, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ENERGY S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 9,910 10,032
Apr-98 9,880 9,932
Apr-98 9,770 10,062
Apr-98 9,780 10,071
Apr-98 9,760 10,095
Apr-98 9,890 10,128
Apr-98 9,930 10,034
May-98 10,280 9,930
May-98 10,130 9,738
May-98 10,070 9,725
May-98 10,040 9,811
May-98 9,890 9,964
May-98 9,930 10,047
May-98 9,910 10,057
May-98 9,960 9,999
May-98 9,980 9,903
May-98 10,010 9,815
May-98 9,920 9,932
May-98 9,750 9,918
May-98 9,770 10,000
May-98 9,710 10,028
May-98 9,620 10,015
May-98 9,600 9,937
May-98 9,480 9,911
May-98 9,470 9,944
May-98 9,530 10,030
May-98 9,490 9,990
Jun-98 9,390 9,953
Jun-98 9,370 9,805
Jun-98 9,250 9,789
Jun-98 9,450 9,837
Jun-98 9,670 9,777
Jun-98 9,520 9,778
Jun-98 9,390 9,796
Jun-98 9,300 9,704
Jun-98 9,070 9,813
Jun-98 9,240 9,983
Jun-98 8,970 10,000
Jun-98 9,170 10,024
Jun-98 9,410 9,969
Jun-98 9,220 9,810
Jun-98 9,120 9,848
Jun-98 9,240 9,653
Jun-98 9,360 9,748
Jun-98 9,400 9,922
Jun-98 9,400 9,916
Jun-98 9,360 9,865
Jun-98 9,330 9,888
Jun-98 9,330 10,034
Jul-98 9,470 10,154
Jul-98 9,500 10,121
Jul-98 9,410 10,156
Jul-98 9,220 10,204
Jul-98 9,250 10,162
Jul-98 9,080 10,294
Jul-98 9,050 10,275
Jul-98 8,850 10,372
Jul-98 9,030 10,349
Jul-98 9,080 10,454
Jul-98 9,090 10,384
Jul-98 9,040 10,435
Jul-98 8,900 10,443
Jul-98 8,850 10,554
Jul-98 8,990 10,529
Jul-98 8,720 10,612
Jul-98 8,710 10,636
Jul-98 8,750 10,613
Jul-98 8,650 10,442
Jul-98 8,670 10,433
Jul-98 8,760 10,215
Jul-98 8,570 10,225
Aug-98 8,380 10,283
Aug-98 8,180 10,130
Aug-98 8,060 10,085
Aug-98 7,970 10,243
Aug-98 8,180 10,044
Aug-98 8,020 9,970
Aug-98 8,140 9,609
Aug-98 8,200 9,692
Aug-98 8,250 9,766
Aug-98 8,290 9,764
Aug-98 8,350 9,708
Aug-98 8,440 9,581
Aug-98 8,560 9,717
Aug-98 8,570 9,634
Aug-98 8,460 9,525
Aug-98 8,360 9,712
Aug-98 8,310 9,870
Aug-98 8,150 9,841
Aug-98 7,880 9,784
Aug-98 7,790 9,690
Aug-98 7,520 9,753
Sep-98 7,800 9,795
Sep-98 7,710 9,717
Sep-98 7,790 9,344
Sep-98 8,040 9,207
Sep-98 8,240 8,582
Sep-98 8,150 8,911
Sep-98 8,280 8,877
Sep-98 8,560 8,804
Sep-98 8,640 8,729
Sep-98 8,680 9,173
Sep-98 8,670 9,018
Sep-98 8,530 8,785
Sep-98 8,540 9,044
Sep-98 8,570 9,229
Sep-98 8,450 9,300
Sep-98 8,920 9,370
Sep-98 8,680 9,132
Sep-98 8,740 9,143
Sep-98 8,740 9,177
Sep-98 8,950 9,230
Sep-98 8,620 9,555
Oct-98 8,470 9,345
Oct-98 8,690 9,364
Oct-98 8,730 9,399
Oct-98 8,770 9,402
Oct-98 8,640 9,115
Oct-98 8,440 8,841
Oct-98 8,460 8,986
Oct-98 8,540 8,860
Oct-98 8,520 8,824
Oct-98 8,570 8,700
Oct-98 8,750 8,599
Oct-98 8,820 8,822
Oct-98 8,650 8,942
Oct-98 8,730 8,916
Oct-98 8,670 9,012
Oct-98 8,550 9,388
Oct-98 8,500 9,468
Oct-98 8,630 9,522
Oct-98 8,560 9,536
Oct-98 8,500 9,589
Oct-98 8,610 9,666
Oct-98 8,680 9,596
Nov-98 8,810 9,611
Nov-98 8,850 9,548
Nov-98 8,820 9,573
Nov-98 8,840 9,733
Nov-98 8,890 9,847
Nov-98 8,760 9,963
Nov-98 8,540 9,956
Nov-98 8,470 10,026
Nov-98 8,680 10,161
Nov-98 8,720 10,226
Nov-98 8,630 10,130
Nov-98 8,550 10,112
Nov-98 8,560 10,047
Nov-98 8,460 10,017
Nov-98 8,630 10,089
Nov-98 8,590 10,180
Nov-98 8,560 10,211
Nov-98 8,540 10,257
Nov-98 8,800 10,330
Nov-98 8,530 10,428
Dec-98 8,340 10,649
Dec-98 8,180 10,603
Dec-98 8,100 10,637
Dec-98 8,220 10,686
Dec-98 8,350 10,429
Dec-98 8,310 10,534
Dec-98 8,460 10,497
Dec-98 8,350 10,308
Dec-98 8,350 10,547
Dec-98 8,290 10,645
Dec-98 8,260 10,588
Dec-98 8,470 10,607
Dec-98 8,340 10,442
Dec-98 8,350 10,454
Dec-98 8,320 10,228
Dec-98 8,280 10,422
Dec-98 8,510 10,414
Dec-98 8,440 10,576
Dec-98 8,400 10,648
Dec-98 8,450 10,781
Dec-98 8,250 10,787
Dec-98 8,350 11,011
Jan-99 8,420 10,991
Jan-99 8,370 10,984
Jan-99 8,640 11,130
Jan-99 8,660 11,041
Jan-99 8,640 11,017
Jan-99 8,520 11,007
Jan-99 8,390 11,156
Jan-99 8,230 11,403
Jan-99 8,100 11,380
Jan-99 8,240 11,428
Jan-99 8,240 11,328
Jan-99 8,180 11,109
Jan-99 8,200 11,063
Jan-99 8,170 10,864
Jan-99 8,090 11,143
Jan-99 7,990 11,211
Jan-99 7,830 11,263
Jan-99 7,780 11,070
Jan-99 7,760 10,981
Feb-99 7,750 11,060
Feb-99 7,780 11,224
Feb-99 7,980 11,142
Feb-99 7,940 11,341
Feb-99 8,150 11,469
Feb-99 8,230 11,409
Feb-99 8,070 11,311
Feb-99 8,070 11,401
Feb-99 7,990 11,190
Feb-99 7,890 11,108
Feb-99 7,800 11,147
Feb-99 7,720 10,900
Feb-99 7,770 10,966
Feb-99 7,700 11,239
Feb-99 7,750 11,025
Feb-99 7,740 11,130
Feb-99 7,720 10,970
Feb-99 7,750 11,089
Feb-99 7,700 11,106
Mar-99 7,600 11,402
Mar-99 7,540 11,393
Mar-99 7,760 11,234
Mar-99 8,020 11,159
Mar-99 8,170 11,099
Mar-99 8,280 11,079
Mar-99 8,210 10,984
Mar-99 8,640 11,003
Mar-99 8,750 11,173
Mar-99 8,760 11,432
Mar-99 8,650 11,497
Mar-99 8,600 11,471
Mar-99 8,850 11,533
Mar-99 8,950 11,631
Mar-99 8,830 11,603
Mar-99 8,960 11,716
Mar-99 8,780 11,708
Mar-99 8,760 11,632
Mar-99 8,830 11,800
Mar-99 8,930 11,645
Mar-99 9,280 11,625
Mar-99 9,140 11,312
Mar-99 8,990 11,370
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
--------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-21-98) (5-5-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Energy Fund -10.10% -10.53%
S&P 500-TM- Composite Stock Price Index 14.21% 15.30%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
9
<PAGE>
ENERGY SERVICES FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES THAT ARE
INVOLVED IN THE ENERGY SERVICES FIELD, INCLUDING THOSE THAT PROVIDE SERVICES AND
EQUIPMENT IN THE AREAS OF OIL, COAL, AND GAS EXPLORATION AND PRODUCTION.
INCEPTION: APRIL 1, 1998
The Energy Services sector came under heavy selling pressure during the period
due to its sensitivity to oil prices. As the price plunged, the volatile sector
followed suit causing it to underperform the general market. During the period,
Haliburton Co. merged with Dresser Industries and Schlumberger acquired Camco
International. Corporate merger activity remains high in the Energy and Energy
Services sectors as firms scramble to remain profitable in an environment of low
oil prices. The Fund's total return for the period ended March 31,1999 was
- -39.80%.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ENERGY SERV S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 9,840 10,107
Apr-98 9,780 10,131
Apr-98 9,650 10,119
Apr-98 9,440 10,013
Apr-98 9,520 9,941
Apr-98 9,370 10,023
Apr-98 9,320 10,014
Apr-98 9,470 10,069
Apr-98 9,850 10,101
Apr-98 9,660 10,000
Apr-98 9,830 10,131
Apr-98 9,821 10,140
Apr-98 10,190 10,164
Apr-98 10,110 10,197
Apr-98 10,000 10,103
Apr-98 9,770 9,998
Apr-98 9,640 9,805
Apr-98 9,850 9,792
Apr-98 10,320 9,878
Apr-98 10,240 10,033
May-98 10,680 10,116
May-98 10,510 10,126
May-98 10,640 10,068
May-98 10,500 9,971
May-98 10,220 9,883
May-98 10,350 10,000
May-98 10,240 9,986
May-98 10,180 10,069
May-98 10,180 10,097
May-98 10,210 10,083
May-98 10,000 10,005
May-98 9,760 9,979
May-98 9,780 10,012
May-98 9,540 10,098
May-98 9,480 10,059
May-98 9,430 10,021
May-98 9,240 9,872
May-98 9,140 9,856
May-98 9,280 9,905
May-98 9,300 9,844
Jun-98 8,900 9,845
Jun-98 8,970 9,864
Jun-98 8,760 9,771
Jun-98 9,080 9,880
Jun-98 9,170 10,052
Jun-98 8,910 10,068
Jun-98 8,750 10,093
Jun-98 8,470 10,037
Jun-98 8,130 9,878
Jun-98 8,340 9,916
Jun-98 7,800 9,719
Jun-98 8,050 9,814
Jun-98 8,240 9,991
Jun-98 7,950 9,984
Jun-98 8,220 9,932
Jun-98 8,510 9,956
Jun-98 8,600 10,102
Jun-98 8,560 10,223
Jun-98 8,320 10,191
Jun-98 8,160 10,226
Jun-98 8,360 10,274
Jun-98 8,360 10,232
Jul-98 8,340 10,365
Jul-98 8,550 10,345
Jul-98 8,270 10,444
Jul-98 8,020 10,420
Jul-98 8,100 10,525
Jul-98 7,940 10,455
Jul-98 7,880 10,507
Jul-98 7,620 10,515
Jul-98 7,760 10,627
Jul-98 7,960 10,602
Jul-98 7,900 10,685
Jul-98 7,810 10,709
Jul-98 7,550 10,685
Jul-98 7,400 10,514
Jul-98 7,480 10,505
Jul-98 7,040 10,285
Jul-98 6,810 10,295
Jul-98 6,940 10,353
Jul-98 6,750 10,199
Jul-98 6,650 10,154
Jul-98 6,900 10,313
Jul-98 6,660 10,113
Aug-98 6,480 10,039
Aug-98 6,120 9,675
Aug-98 5,920 9,759
Aug-98 6,150 9,833
Aug-98 6,370 9,831
Aug-98 6,020 9,774
Aug-98 5,770 9,647
Aug-98 5,960 9,784
Aug-98 5,840 9,700
Aug-98 5,620 9,590
Aug-98 5,470 9,779
Aug-98 5,600 9,937
Aug-98 5,880 9,909
Aug-98 5,840 9,851
Aug-98 5,730 9,757
Aug-98 5,630 9,819
Aug-98 5,500 9,862
Aug-98 5,290 9,784
Aug-98 4,950 9,408
Aug-98 4,960 9,270
Aug-98 4,550 8,641
Sep-98 4,760 8,972
Sep-98 4,790 8,938
Sep-98 5,030 8,864
Sep-98 5,330 8,788
Sep-98 5,290 9,236
Sep-98 5,150 9,080
Sep-98 5,470 8,845
Sep-98 5,840 9,106
Sep-98 5,980 9,292
Sep-98 5,870 9,364
Sep-98 6,060 9,434
Sep-98 5,780 9,194
Sep-98 5,690 9,205
Sep-98 5,670 9,240
Sep-98 5,490 9,293
Sep-98 5,890 9,620
Sep-98 5,510 9,410
Sep-98 5,550 9,428
Sep-98 5,590 9,463
Sep-98 5,750 9,466
Sep-98 5,420 9,178
Oct-98 5,230 8,901
Oct-98 5,220 9,048
Oct-98 5,000 8,921
Oct-98 5,020 8,885
Oct-98 4,790 8,759
Oct-98 4,550 8,658
Oct-98 4,650 8,883
Oct-98 4,860 9,003
Oct-98 4,730 8,977
Oct-98 4,760 9,074
Oct-98 5,110 9,453
Oct-98 5,700 9,533
Oct-98 5,600 9,587
Oct-98 5,540 9,601
Oct-98 5,830 9,655
Oct-98 6,110 9,732
Oct-98 5,930 9,662
Oct-98 6,300 9,677
Oct-98 6,220 9,614
Oct-98 6,090 9,638
Oct-98 6,000 9,799
Oct-98 6,190 9,914
Nov-98 6,560 10,031
Nov-98 6,390 10,024
Nov-98 6,380 10,095
Nov-98 6,440 10,230
Nov-98 6,540 10,297
Nov-98 6,320 10,199
Nov-98 5,940 10,181
Nov-98 5,700 10,116
Nov-98 5,760 10,086
Nov-98 5,710 10,159
Nov-98 5,490 10,250
Nov-98 5,510 10,281
Nov-98 5,360 10,328
Nov-98 5,360 10,401
Nov-98 5,480 10,500
Nov-98 5,280 10,722
Nov-98 5,290 10,675
Nov-98 5,240 10,710
Nov-98 5,070 10,759
Nov-98 4,770 10,501
Dec-98 4,650 10,606
Dec-98 4,550 10,569
Dec-98 4,520 10,379
Dec-98 4,610 10,619
Dec-98 4,990 10,718
Dec-98 4,850 10,661
Dec-98 4,850 10,680
Dec-98 4,750 10,513
Dec-98 4,690 10,526
Dec-98 4,850 10,298
Dec-98 4,750 10,493
Dec-98 5,130 10,485
Dec-98 4,830 10,648
Dec-98 4,750 10,721
Dec-98 4,650 10,854
Dec-98 4,620 10,861
Dec-98 4,900 11,086
Dec-98 4,870 11,066
Dec-98 4,810 11,059
Dec-98 4,720 11,206
Dec-98 4,650 11,117
Dec-98 4,840 11,093
Jan-99 4,970 11,082
Jan-99 4,910 11,233
Jan-99 5,300 11,482
Jan-99 5,580 11,458
Jan-99 5,470 11,506
Jan-99 5,520 11,405
Jan-99 5,250 11,185
Jan-99 4,970 11,139
Jan-99 4,950 10,939
Jan-99 5,050 11,219
Jan-99 5,140 11,288
Jan-99 4,930 11,340
Jan-99 5,060 11,146
Jan-99 5,110 11,056
Jan-99 4,930 11,135
Jan-99 4,740 11,301
Jan-99 4,670 11,218
Jan-99 4,550 11,419
Jan-99 4,610 11,548
Feb-99 4,540 11,488
Feb-99 4,620 11,388
Feb-99 4,890 11,479
Feb-99 4,760 11,266
Feb-99 4,870 11,184
Feb-99 4,840 11,224
Feb-99 4,700 10,975
Feb-99 4,660 11,041
Feb-99 4,740 11,317
Feb-99 4,600 11,101
Feb-99 4,530 11,207
Feb-99 4,420 11,046
Feb-99 4,580 11,165
Feb-99 4,460 11,183
Feb-99 4,440 11,480
Feb-99 4,450 11,471
Feb-99 4,380 11,311
Feb-99 4,470 11,235
Feb-99 4,360 11,175
Mar-99 4,360 11,155
Mar-99 4,390 11,059
Mar-99 4,670 11,079
Mar-99 4,950 11,250
Mar-99 4,920 11,510
Mar-99 5,080 11,575
Mar-99 4,980 11,549
Mar-99 5,500 11,613
Mar-99 5,400 11,710
Mar-99 5,530 11,682
Mar-99 5,430 11,797
Mar-99 5,320 11,789
Mar-99 5,680 11,712
Mar-99 5,740 11,881
Mar-99 5,640 11,725
Mar-99 5,840 11,704
Mar-99 5,640 11,390
Mar-99 5,690 11,448
Mar-99 5,820 11,641
Mar-99 6,010 11,576
Mar-99 6,360 11,823
Mar-99 6,220 11,738
Mar-99 6,020 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-2-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Energy Services Fund -39.80% -39.05%
S&P 500-TM- Composite Stock Price Index 16.08% 14.85%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
10
<PAGE>
FINANCIAL SERVICES FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES THAT ARE
INVOLVED IN THE FINANCIAL SERVICES SECTOR, INCLUDING COMMERCIAL BANKS, SAVINGS
AND LOAN ASSOCIATIONS, INSURANCE COMPANIES, BROKERAGE COMPANIES, AND REAL ESTATE
AND LEASING COMPANIES.
INCEPTION: APRIL 2, 1998
Banking and financial services stocks experienced a sell-off in the second and
third quarters because of losses due to the Russian debt default and the
collapse of hedge fund Long Term Capital Management. Companies that service
consumer loans such as American Express, and brokerage stocks like Schwab
provided above-market returns during the period. The Fund's total return for the
period ended March 31, 1999 was -0.10%.
CUMULATIVE FUND PERFORMANCE: APRIL 2, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FINC SERV S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 10,100 10,024
Apr-98 10,470 10,012
Apr-98 10,280 9,907
Apr-98 10,150 9,836
Apr-98 10,310 9,917
Apr-98 10,460 9,908
Apr-98 10,460 9,962
Apr-98 10,420 9,994
Apr-98 10,250 9,894
Apr-98 10,410 10,024
Apr-98 10,320 10,032
Apr-98 10,260 10,057
Apr-98 10,380 10,089
Apr-98 10,210 9,996
Apr-98 10,040 9,892
Apr-98 9,750 9,701
Apr-98 9,760 9,688
Apr-98 9,840 9,773
Apr-98 10,020 9,926
May-98 10,200 10,009
May-98 10,110 10,018
May-98 10,000 9,961
May-98 9,830 9,865
May-98 9,730 9,778
May-98 9,820 9,894
May-98 9,810 9,881
May-98 9,940 9,962
May-98 9,930 9,990
May-98 9,890 9,976
May-98 9,940 9,899
May-98 9,910 9,873
May-98 9,960 9,906
May-98 10,120 9,992
May-98 10,090 9,952
May-98 10,050 9,915
May-98 9,890 9,768
May-98 9,750 9,752
May-98 9,820 9,800
May-98 9,770 9,739
Jun-98 9,840 9,741
Jun-98 9,880 9,759
Jun-98 9,770 9,667
Jun-98 9,840 9,775
Jun-98 9,980 9,945
Jun-98 10,090 9,962
Jun-98 10,070 9,986
Jun-98 10,060 9,931
Jun-98 9,900 9,773
Jun-98 9,880 9,811
Jun-98 9,640 9,616
Jun-98 9,640 9,711
Jun-98 9,890 9,885
Jun-98 9,860 9,878
Jun-98 9,830 9,827
Jun-98 9,780 9,850
Jun-98 9,880 9,995
Jun-98 10,130 10,115
Jun-98 10,130 10,083
Jun-98 10,140 10,118
Jun-98 10,210 10,165
Jun-98 10,170 10,123
Jul-98 10,380 10,255
Jul-98 10,450 10,236
Jul-98 10,590 10,333
Jul-98 10,630 10,309
Jul-98 10,850 10,414
Jul-98 10,740 10,344
Jul-98 10,860 10,396
Jul-98 10,850 10,403
Jul-98 11,000 10,514
Jul-98 10,850 10,489
Jul-98 10,900 10,572
Jul-98 10,960 10,596
Jul-98 10,900 10,572
Jul-98 10,590 10,402
Jul-98 10,560 10,393
Jul-98 10,390 10,176
Jul-98 10,290 10,186
Jul-98 10,380 10,243
Jul-98 10,170 10,091
Jul-98 10,150 10,046
Jul-98 10,310 10,204
Jul-98 10,190 10,006
Aug-98 10,030 9,932
Aug-98 9,520 9,572
Aug-98 9,640 9,656
Aug-98 9,680 9,729
Aug-98 9,590 9,727
Aug-98 9,450 9,671
Aug-98 9,180 9,544
Aug-98 9,360 9,680
Aug-98 9,210 9,597
Aug-98 9,070 9,489
Aug-98 9,310 9,676
Aug-98 9,560 9,832
Aug-98 9,430 9,804
Aug-98 9,200 9,746
Aug-98 9,020 9,653
Aug-98 9,080 9,715
Aug-98 9,100 9,758
Aug-98 9,000 9,680
Aug-98 8,480 9,309
Aug-98 8,270 9,172
Aug-98 7,730 8,549
Sep-98 7,920 8,877
Sep-98 8,070 8,843
Sep-98 7,830 8,770
Sep-98 7,520 8,695
Sep-98 8,040 9,138
Sep-98 7,820 8,984
Sep-98 7,460 8,752
Sep-98 7,850 9,009
Sep-98 8,120 9,194
Sep-98 8,300 9,265
Sep-98 8,490 9,335
Sep-98 8,180 9,097
Sep-98 8,090 9,108
Sep-98 8,100 9,142
Sep-98 8,150 9,195
Sep-98 8,540 9,519
Sep-98 8,160 9,310
Sep-98 8,140 9,328
Sep-98 8,160 9,363
Sep-98 8,060 9,366
Sep-98 7,760 9,081
Oct-98 7,480 8,807
Oct-98 7,720 8,952
Oct-98 7,390 8,826
Oct-98 7,250 8,791
Oct-98 6,980 8,667
Oct-98 6,950 8,566
Oct-98 7,430 8,788
Oct-98 7,520 8,908
Oct-98 7,580 8,882
Oct-98 7,620 8,978
Oct-98 8,110 9,353
Oct-98 8,330 9,432
Oct-98 8,430 9,486
Oct-98 8,640 9,499
Oct-98 8,480 9,553
Oct-98 8,530 9,629
Oct-98 8,430 9,559
Oct-98 8,380 9,574
Oct-98 8,240 9,512
Oct-98 8,310 9,536
Oct-98 8,500 9,696
Oct-98 8,700 9,809
Nov-98 8,750 9,925
Nov-98 8,690 9,918
Nov-98 8,870 9,988
Nov-98 9,080 10,122
Nov-98 9,090 10,187
Nov-98 8,870 10,091
Nov-98 8,750 10,074
Nov-98 8,600 10,009
Nov-98 8,570 9,979
Nov-98 8,750 10,051
Nov-98 8,880 10,142
Nov-98 9,030 10,172
Nov-98 8,990 10,218
Nov-98 9,060 10,291
Nov-98 9,190 10,389
Nov-98 9,510 10,609
Nov-98 9,480 10,562
Nov-98 9,530 10,597
Nov-98 9,510 10,645
Nov-98 9,220 10,389
Dec-98 9,220 10,493
Dec-98 9,260 10,457
Dec-98 9,040 10,269
Dec-98 9,310 10,507
Dec-98 9,300 10,604
Dec-98 9,120 10,548
Dec-98 9,120 10,567
Dec-98 8,970 10,402
Dec-98 8,860 10,415
Dec-98 8,650 10,189
Dec-98 8,900 10,382
Dec-98 8,880 10,374
Dec-98 9,280 10,535
Dec-98 9,300 10,607
Dec-98 9,460 10,740
Dec-98 9,380 10,746
Dec-98 9,510 10,969
Dec-98 9,520 10,949
Dec-98 9,440 10,942
Dec-98 9,540 11,087
Dec-98 9,510 10,999
Dec-98 9,380 10,975
Jan-99 9,420 10,965
Jan-99 9,510 11,114
Jan-99 9,780 11,360
Jan-99 9,980 11,337
Jan-99 10,050 11,385
Jan-99 9,880 11,285
Jan-99 9,630 11,067
Jan-99 9,480 11,021
Jan-99 9,190 10,823
Jan-99 9,540 11,100
Jan-99 9,430 11,169
Jan-99 9,540 11,220
Jan-99 9,380 11,028
Jan-99 9,240 10,939
Jan-99 9,360 11,018
Jan-99 9,370 11,181
Jan-99 9,160 11,100
Jan-99 9,370 11,298
Jan-99 9,570 11,425
Feb-99 9,420 11,366
Feb-99 9,300 11,268
Feb-99 9,360 11,358
Feb-99 9,160 11,147
Feb-99 9,100 11,066
Feb-99 9,010 11,105
Feb-99 8,880 10,858
Feb-99 8,980 10,924
Feb-99 9,350 11,197
Feb-99 9,170 10,983
Feb-99 9,420 11,088
Feb-99 9,390 10,929
Feb-99 9,530 11,047
Feb-99 9,550 11,064
Feb-99 9,830 11,358
Feb-99 9,870 11,350
Feb-99 9,540 11,191
Feb-99 9,530 11,116
Feb-99 9,650 11,056
Mar-99 9,750 11,037
Mar-99 9,720 10,942
Mar-99 9,680 10,962
Mar-99 9,860 11,131
Mar-99 10,090 11,388
Mar-99 10,060 11,453
Mar-99 10,150 11,427
Mar-99 10,290 11,490
Mar-99 10,360 11,586
Mar-99 10,300 11,559
Mar-99 10,440 11,672
Mar-99 10,280 11,664
Mar-99 10,150 11,588
Mar-99 10,390 11,755
Mar-99 10,220 11,601
Mar-99 10,210 11,580
Mar-99 9,930 11,269
Mar-99 9,890 11,327
Mar-99 10,070 11,518
Mar-99 10,020 11,453
Mar-99 10,190 11,698
Mar-99 10,050 11,614
Mar-99 9,990 11,485
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-2-98) (4-6-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Financial Services Fund -0.10% -4.97%
S&P 500-TM- Composite Stock Price Index 14.85% 14.71%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
11
<PAGE>
HEALTHCARE FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES THAT ARE
INVOLVED IN THE HEALTH CARE INDUSTRY.
INCEPTION: APRIL 17, 1998
The Health Care sector, led by two of the largest pharmaceutical companies,
Merck & Co. and Bristol-Myers Squib, continued to enjoy robust earnings growth,
driven by firmer pricing trends and contributions from new drugs and high-tech
medical devices. The demographics of a maturing population increased the demand
for drugs and other healthcare products and services. The Fund's total return
for the period ended March 31,1999 was 14.50%.
CUMULATIVE FUND PERFORMANCE: APRIL 17, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HEALTH CARE S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 10,160 10,032
Apr-98 10,120 9,932
Apr-98 10,090 10,062
Apr-98 10,000 10,071
Apr-98 9,930 10,095
Apr-98 9,670 10,128
Apr-98 9,760 10,034
Apr-98 9,840 9,930
Apr-98 10,070 9,738
May-98 9,940 9,725
May-98 10,010 9,811
May-98 9,960 9,964
May-98 9,820 10,047
May-98 9,760 10,057
May-98 9,950 9,999
May-98 9,930 9,903
May-98 10,020 9,815
May-98 10,040 9,932
May-98 10,070 9,918
May-98 9,990 10,000
May-98 10,100 10,028
May-98 10,160 10,015
May-98 10,240 9,937
May-98 10,100 9,911
May-98 10,040 9,944
May-98 9,890 10,030
May-98 9,950 9,990
May-98 9,920 9,953
May-98 9,790 9,805
Jun-98 9,740 9,789
Jun-98 9,680 9,837
Jun-98 9,620 9,777
Jun-98 9,800 9,778
Jun-98 10,010 9,796
Jun-98 10,090 9,704
Jun-98 10,180 9,813
Jun-98 10,210 9,983
Jun-98 10,080 10,000
Jun-98 10,190 10,024
Jun-98 9,990 9,969
Jun-98 10,140 9,810
Jun-98 10,320 9,848
Jun-98 10,380 9,653
Jun-98 10,330 9,748
Jun-98 10,260 9,922
Jun-98 10,330 9,916
Jun-98 10,510 9,865
Jun-98 10,480 9,888
Jun-98 10,590 10,034
Jun-98 10,610 10,154
Jun-98 10,490 10,121
Jul-98 10,540 10,156
Jul-98 10,580 10,204
Jul-98 10,710 10,162
Jul-98 10,720 10,294
Jul-98 10,760 10,275
Jul-98 10,720 10,372
Jul-98 10,790 10,349
Jul-98 10,840 10,454
Jul-98 11,010 10,384
Jul-98 10,920 10,435
Jul-98 11,090 10,443
Jul-98 11,110 10,554
Jul-98 11,160 10,529
Jul-98 10,800 10,612
Jul-98 10,860 10,636
Jul-98 10,550 10,613
Jul-98 10,670 10,442
Jul-98 10,690 10,433
Jul-98 10,500 10,215
Jul-98 10,500 10,225
Jul-98 10,700 10,283
Jul-98 10,450 10,130
Aug-98 10,360 10,085
Aug-98 10,010 10,243
Aug-98 10,110 10,044
Aug-98 10,060 9,970
Aug-98 10,090 9,609
Aug-98 10,090 9,692
Aug-98 10,020 9,766
Aug-98 10,100 9,764
Aug-98 10,140 9,708
Aug-98 10,040 9,581
Aug-98 10,290 9,717
Aug-98 10,400 9,634
Aug-98 10,460 9,525
Aug-98 10,360 9,712
Aug-98 10,380 9,870
Aug-98 10,470 9,841
Aug-98 10,540 9,784
Aug-98 10,640 9,690
Aug-98 10,250 9,753
Aug-98 10,130 9,795
Aug-98 9,270 9,717
Sep-98 9,710 9,344
Sep-98 9,720 9,207
Sep-98 9,870 8,582
Sep-98 9,720 8,911
Sep-98 10,150 8,877
Sep-98 10,010 8,804
Sep-98 9,800 8,729
Sep-98 10,040 9,173
Sep-98 10,280 9,018
Sep-98 10,390 8,785
Sep-98 10,350 9,044
Sep-98 10,180 9,229
Sep-98 10,170 9,300
Sep-98 10,250 9,370
Sep-98 10,420 9,132
Sep-98 10,650 9,143
Sep-98 10,480 9,177
Sep-98 10,390 9,230
Sep-98 10,410 9,555
Sep-98 10,500 9,345
Sep-98 10,220 9,364
Oct-98 9,830 9,399
Oct-98 9,880 9,402
Oct-98 9,850 9,115
Oct-98 9,770 8,841
Oct-98 9,480 8,986
Oct-98 9,350 8,860
Oct-98 9,570 8,824
Oct-98 9,720 8,700
Oct-98 9,730 8,599
Oct-98 9,760 8,822
Oct-98 10,090 8,942
Oct-98 10,170 8,916
Oct-98 10,180 9,012
Oct-98 10,040 9,388
Oct-98 10,180 9,468
Oct-98 10,260 9,522
Oct-98 10,320 9,536
Oct-98 10,280 9,589
Oct-98 10,240 9,666
Oct-98 10,280 9,596
Oct-98 10,560 9,611
Oct-98 10,550 9,548
Nov-98 10,680 9,573
Nov-98 10,640 9,733
Nov-98 10,540 9,847
Nov-98 10,680 9,963
Nov-98 10,820 9,956
Nov-98 10,670 10,026
Nov-98 10,770 10,161
Nov-98 10,620 10,226
Nov-98 10,590 10,130
Nov-98 10,610 10,112
Nov-98 10,740 10,047
Nov-98 10,740 10,017
Nov-98 10,900 10,089
Nov-98 11,040 10,180
Nov-98 11,170 10,211
Nov-98 11,360 10,257
Nov-98 11,260 10,330
Nov-98 11,270 10,428
Nov-98 11,320 10,649
Nov-98 11,080 10,603
Dec-98 11,190 10,637
Dec-98 11,330 10,686
Dec-98 11,010 10,429
Dec-98 11,260 10,534
Dec-98 11,240 10,497
Dec-98 11,270 10,308
Dec-98 11,260 10,547
Dec-98 11,030 10,645
Dec-98 11,120 10,588
Dec-98 10,850 10,607
Dec-98 10,960 10,442
Dec-98 10,970 10,454
Dec-98 11,040 10,228
Dec-98 10,910 10,422
Dec-98 10,840 10,414
Dec-98 11,010 10,576
Dec-98 11,230 10,648
Dec-98 11,170 10,781
Dec-98 11,190 10,787
Dec-98 11,510 11,011
Dec-98 11,490 10,991
Dec-98 11,520 10,984
Jan-99 11,430 11,130
Jan-99 11,480 11,041
Jan-99 11,610 11,017
Jan-99 11,480 11,007
Jan-99 11,380 11,156
Jan-99 11,110 11,403
Jan-99 10,910 11,380
Jan-99 10,960 11,428
Jan-99 10,820 11,328
Jan-99 11,010 11,109
Jan-99 10,910 11,063
Jan-99 10,980 10,864
Jan-99 10,780 11,143
Jan-99 10,690 11,211
Jan-99 10,690 11,263
Jan-99 10,920 11,070
Jan-99 11,100 10,981
Jan-99 11,250 11,060
Jan-99 11,330 11,224
Feb-99 11,370 11,142
Feb-99 11,360 11,341
Feb-99 11,420 11,469
Feb-99 11,310 11,409
Feb-99 11,200 11,311
Feb-99 11,150 11,401
Feb-99 10,900 11,190
Feb-99 10,940 11,108
Feb-99 11,200 11,147
Feb-99 11,170 10,900
Feb-99 11,330 10,966
Feb-99 11,120 11,239
Feb-99 11,200 11,025
Feb-99 11,150 11,130
Feb-99 11,430 10,970
Feb-99 11,490 11,089
Feb-99 11,330 11,106
Feb-99 11,220 11,402
Feb-99 11,290 11,393
Mar-99 11,240 11,234
Mar-99 11,220 11,159
Mar-99 11,160 11,099
Mar-99 11,370 11,079
Mar-99 11,580 10,984
Mar-99 11,590 11,003
Mar-99 11,580 11,173
Mar-99 11,520 11,432
Mar-99 11,610 11,497
Mar-99 11,680 11,471
Mar-99 11,830 11,533
Mar-99 11,840 11,631
Mar-99 11,650 11,603
Mar-99 11,720 11,716
Mar-99 11,540 11,708
Mar-99 11,540 11,632
Mar-99 11,260 11,800
Mar-99 11,280 11,645
Mar-99 11,340 11,625
Mar-99 11,280 11,312
Mar-99 11,510 11,370
Mar-99 11,550 11,562
Mar-99 11,450 11,458
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
---------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-17-98) (5-11-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Healthcare Fund 14.50% 14.50%
S&P 500-TM- Composite Stock Price Index 14.58% 16.24%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
12
<PAGE>
LEISURE FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES ENGAGED IN
LEISURE AND ENTERTAINMENT BUSINESSES, INCLUDING HOTELS AND RESORTS, CASINOS,
RADIO AND TELEVISION BROADCASTING AND ADVERTISING, MOTION PICTURE PRODUCTION,
TOYS AND SPORTING GOODS MANUFACTURERS, MUSICAL RECORDINGS AND INSTRUMENTS,
ALCOHOL AND TOBACCO, AND PUBLISHING.
INCEPTION: APRIL 1, 1998
A healthy U.S. economy, bolstered by the spending habits of the American
consumer, benefited the Leisure sector's entertainment and media companies. Time
Warner had solid gains due to a strong demand for cable television and film
entertainment. McDonalds' shares continued their upward momentum, driven by
earnings growth derived from the company's expansion into international markets.
The Fund's total return for the period ended March 31,1999 was 12.10%.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEISURE S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 10,110 10,107
Apr-98 10,220 10,131
Apr-98 10,150 10,119
Apr-98 9,990 10,013
Apr-98 9,990 9,941
Apr-98 9,990 10,023
Apr-98 9,950 10,014
Apr-98 10,070 10,069
Apr-98 10,050 10,101
Apr-98 9,660 10,000
Apr-98 9,740 10,131
Apr-98 9,830 10,140
Apr-98 9,880 10,164
Apr-98 9,750 10,197
Apr-98 9,730 10,103
Apr-98 9,640 9,998
Apr-98 9,490 9,805
Apr-98 9,610 9,792
Apr-98 9,700 9,878
Apr-98 9,790 10,033
May-98 9,870 10,116
May-98 9,950 10,126
May-98 9,890 10,068
May-98 9,840 9,971
May-98 9,690 9,883
May-98 9,730 10,000
May-98 9,780 9,986
May-98 9,710 10,069
May-98 9,720 10,097
May-98 9,670 10,083
May-98 9,560 10,005
May-98 9,530 9,979
May-98 9,530 10,012
May-98 9,610 10,098
May-98 9,710 10,059
May-98 9,650 10,021
May-98 9,500 9,872
May-98 9,480 9,856
May-98 9,520 9,905
May-98 9,480 9,844
Jun-98 9,490 9,845
Jun-98 9,440 9,864
Jun-98 9,350 9,771
Jun-98 9,370 9,880
Jun-98 9,590 10,052
Jun-98 9,640 10,068
Jun-98 9,670 10,093
Jun-98 9,590 10,037
Jun-98 9,400 9,878
Jun-98 9,420 9,916
Jun-98 9,210 9,719
Jun-98 9,350 9,814
Jun-98 9,460 9,991
Jun-98 9,520 9,984
Jun-98 9,450 9,932
Jun-98 9,540 9,956
Jun-98 9,740 10,102
Jun-98 9,890 10,223
Jun-98 9,820 10,191
Jun-98 9,840 10,226
Jun-98 9,880 10,274
Jun-98 9,810 10,232
Jul-98 9,990 10,365
Jul-98 9,930 10,345
Jul-98 10,050 10,444
Jul-98 10,030 10,420
Jul-98 10,060 10,525
Jul-98 10,050 10,455
Jul-98 10,140 10,507
Jul-98 10,130 10,515
Jul-98 10,150 10,627
Jul-98 10,140 10,602
Jul-98 10,180 10,685
Jul-98 10,270 10,709
Jul-98 10,180 10,685
Jul-98 10,060 10,514
Jul-98 9,990 10,505
Jul-98 9,900 10,285
Jul-98 9,850 10,295
Jul-98 9,820 10,353
Jul-98 9,740 10,199
Jul-98 9,770 10,154
Jul-98 9,860 10,313
Jul-98 9,680 10,113
Aug-98 9,580 10,039
Aug-98 9,250 9,675
Aug-98 9,230 9,759
Aug-98 9,370 9,833
Aug-98 9,350 9,831
Aug-98 9,350 9,774
Aug-98 9,160 9,647
Aug-98 9,380 9,784
Aug-98 9,240 9,700
Aug-98 9,140 9,590
Aug-98 9,210 9,779
Aug-98 9,340 9,937
Aug-98 9,270 9,909
Aug-98 9,320 9,851
Aug-98 9,210 9,757
Aug-98 9,230 9,819
Aug-98 9,330 9,862
Aug-98 9,170 9,784
Aug-98 8,920 9,408
Aug-98 8,810 9,270
Aug-98 8,190 8,641
Sep-98 8,500 8,972
Sep-98 8,520 8,938
Sep-98 8,410 8,864
Sep-98 8,350 8,788
Sep-98 8,760 9,236
Sep-98 8,580 9,080
Sep-98 8,380 8,845
Sep-98 8,470 9,106
Sep-98 8,540 9,292
Sep-98 8,630 9,364
Sep-98 8,720 9,434
Sep-98 8,540 9,194
Sep-98 8,660 9,205
Sep-98 8,670 9,240
Sep-98 8,720 9,293
Sep-98 8,870 9,620
Sep-98 8,670 9,410
Sep-98 8,630 9,428
Sep-98 8,720 9,463
Sep-98 8,650 9,466
Sep-98 8,480 9,178
Oct-98 8,270 8,901
Oct-98 8,330 9,048
Oct-98 8,210 8,921
Oct-98 8,210 8,885
Oct-98 8,100 8,759
Oct-98 7,870 8,658
Oct-98 8,040 8,883
Oct-98 8,160 9,003
Oct-98 8,130 8,977
Oct-98 8,240 9,074
Oct-98 8,540 9,453
Oct-98 8,570 9,533
Oct-98 8,670 9,587
Oct-98 8,830 9,601
Oct-98 8,950 9,655
Oct-98 9,050 9,732
Oct-98 8,930 9,662
Oct-98 8,970 9,677
Oct-98 8,940 9,614
Oct-98 8,970 9,638
Oct-98 9,100 9,799
Oct-98 9,180 9,914
Nov-98 9,380 10,031
Nov-98 9,310 10,024
Nov-98 9,330 10,095
Nov-98 9,430 10,230
Nov-98 9,520 10,297
Nov-98 9,430 10,199
Nov-98 9,480 10,181
Nov-98 9,430 10,116
Nov-98 9,350 10,086
Nov-98 9,480 10,159
Nov-98 9,440 10,250
Nov-98 9,430 10,281
Nov-98 9,490 10,328
Nov-98 9,670 10,401
Nov-98 9,650 10,500
Nov-98 9,840 10,722
Nov-98 9,760 10,675
Nov-98 9,880 10,710
Nov-98 9,950 10,759
Nov-98 9,840 10,501
Dec-98 9,930 10,606
Dec-98 9,920 10,569
Dec-98 9,820 10,379
Dec-98 9,960 10,619
Dec-98 10,010 10,718
Dec-98 10,130 10,661
Dec-98 10,180 10,680
Dec-98 9,980 10,513
Dec-98 9,990 10,526
Dec-98 9,700 10,298
Dec-98 9,830 10,493
Dec-98 9,850 10,485
Dec-98 9,990 10,648
Dec-98 10,040 10,721
Dec-98 10,230 10,854
Dec-98 10,320 10,861
Dec-98 10,540 11,086
Dec-98 10,550 11,066
Dec-98 10,440 11,059
Dec-98 10,650 11,206
Dec-98 10,620 11,117
Dec-98 10,630 11,093
Jan-99 10,550 11,082
Jan-99 10,700 11,233
Jan-99 10,850 11,482
Jan-99 10,790 11,458
Jan-99 10,970 11,506
Jan-99 11,040 11,405
Jan-99 10,940 11,185
Jan-99 10,890 11,139
Jan-99 10,780 10,939
Jan-99 10,980 11,219
Jan-99 11,130 11,288
Jan-99 11,200 11,340
Jan-99 10,790 11,146
Jan-99 10,730 11,056
Jan-99 10,840 11,135
Jan-99 10,990 11,301
Jan-99 10,830 11,218
Jan-99 11,070 11,419
Jan-99 11,020 11,548
Feb-99 11,010 11,488
Feb-99 10,940 11,388
Feb-99 11,170 11,479
Feb-99 11,000 11,266
Feb-99 10,960 11,184
Feb-99 10,940 11,224
Feb-99 10,730 10,975
Feb-99 10,700 11,041
Feb-99 10,930 11,317
Feb-99 10,740 11,101
Feb-99 10,800 11,207
Feb-99 10,650 11,046
Feb-99 10,860 11,165
Feb-99 10,880 11,183
Feb-99 11,150 11,480
Feb-99 11,090 11,471
Feb-99 11,060 11,311
Feb-99 10,900 11,235
Feb-99 10,950 11,175
Mar-99 10,940 11,155
Mar-99 10,900 11,059
Mar-99 10,910 11,079
Mar-99 11,060 11,250
Mar-99 11,340 11,510
Mar-99 11,310 11,575
Mar-99 11,210 11,549
Mar-99 11,310 11,613
Mar-99 11,400 11,710
Mar-99 11,310 11,682
Mar-99 11,310 11,797
Mar-99 11,260 11,789
Mar-99 11,190 11,712
Mar-99 11,380 11,881
Mar-99 11,390 11,725
Mar-99 11,270 11,704
Mar-99 11,000 11,390
Mar-99 11,060 11,448
Mar-99 11,210 11,641
Mar-99 11,140 11,576
Mar-99 11,280 11,823
Mar-99 11,210 11,738
Mar-99 11,210 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (6-3-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Leisure Fund 12.10% 19.36%
S&P 500-TM- Composite Stock Price Index 16.08% 18.81%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
13
<PAGE>
RETAILING FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES ENGAGED IN
MERCHANDISING FINISHED GOODS AND SERVICES, INCLUDING DEPARTMENT STORES,
RESTAURANT FRANCHISES, MAIL ORDER OPERATIONS AND OTHER COMPANIES INVOLVED IN
SELLING PRODUCTS TO CONSUMERS.
INCEPTION: APRIL 1, 1998
Retail sector companies performed well over the reporting period as growth in
consumer spending increased over 4.8% in 1998 -- the strongest growth
experienced in over a decade. Low inflation and interests rates encouraged a
continuation of consumer spending throughout the first quarter of 1999. The
Fund's top holdings included sector stalwarts Wal-Mart and Home Depot, which
continued to improve in same store sales and earnings growth in 1998. The Fund's
total return for the period ended March 31,1999 was 35.40%.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DATE RETAILING S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 9,990 10,107
Apr-98 10,060 10,131
Apr-98 9,870 10,119
Apr-98 9,810 10,013
Apr-98 9,770 9,941
Apr-98 9,930 10,023
Apr-98 9,890 10,014
Apr-98 9,970 10,069
Apr-98 10,080 10,101
Apr-98 9,970 10,000
Apr-98 9,970 10,131
Apr-98 9,980 10,140
Apr-98 10,010 10,164
Apr-98 9,960 10,197
Apr-98 9,850 10,103
Apr-98 9,680 9,998
Apr-98 9,470 9,805
Apr-98 9,510 9,792
Apr-98 9,620 9,878
Apr-98 9,880 10,033
May-98 9,900 10,116
May-98 9,950 10,126
May-98 9,910 10,068
May-98 9,810 9,971
May-98 9,810 9,883
May-98 9,870 10,000
May-98 9,880 9,986
May-98 10,030 10,069
May-98 10,140 10,097
May-98 10,160 10,083
May-98 10,070 10,005
May-98 10,030 9,979
May-98 10,100 10,012
May-98 10,200 10,098
May-98 10,240 10,059
May-98 10,200 10,021
May-98 10,090 9,872
May-98 10,050 9,856
May-98 10,250 9,905
May-98 10,270 9,844
Jun-98 10,380 9,845
Jun-98 10,370 9,864
Jun-98 10,280 9,771
Jun-98 10,400 9,880
Jun-98 10,600 10,052
Jun-98 10,720 10,068
Jun-98 10,740 10,093
Jun-98 10,770 10,037
Jun-98 10,690 9,878
Jun-98 10,640 9,916
Jun-98 10,420 9,719
Jun-98 10,440 9,814
Jun-98 10,670 9,991
Jun-98 10,720 9,984
Jun-98 10,650 9,932
Jun-98 10,760 9,956
Jun-98 10,840 10,102
Jun-98 10,940 10,223
Jun-98 10,900 10,191
Jun-98 10,890 10,226
Jun-98 11,050 10,274
Jun-98 10,900 10,232
Jul-98 11,060 10,365
Jul-98 11,120 10,345
Jul-98 11,430 10,444
Jul-98 11,400 10,420
Jul-98 11,500 10,525
Jul-98 11,310 10,455
Jul-98 11,410 10,507
Jul-98 11,420 10,515
Jul-98 11,560 10,627
Jul-98 11,470 10,602
Jul-98 11,600 10,685
Jul-98 11,600 10,709
Jul-98 11,580 10,685
Jul-98 11,370 10,514
Jul-98 11,320 10,505
Jul-98 10,930 10,285
Jul-98 10,860 10,295
Jul-98 10,830 10,353
Jul-98 10,670 10,199
Jul-98 10,490 10,154
Jul-98 10,770 10,313
Jul-98 10,560 10,113
Aug-98 10,470 10,039
Aug-98 10,060 9,675
Aug-98 10,170 9,759
Aug-98 10,450 9,833
Aug-98 10,550 9,831
Aug-98 10,570 9,774
Aug-98 10,450 9,647
Aug-98 10,750 9,784
Aug-98 10,640 9,700
Aug-98 10,410 9,590
Aug-98 10,550 9,779
Aug-98 10,850 9,937
Aug-98 10,760 9,909
Aug-98 10,740 9,851
Aug-98 10,680 9,757
Aug-98 10,870 9,819
Aug-98 11,010 9,862
Aug-98 10,850 9,784
Aug-98 10,450 9,408
Aug-98 10,110 9,270
Aug-98 9,110 8,641
Sep-98 9,620 8,972
Sep-98 9,450 8,938
Sep-98 9,410 8,864
Sep-98 9,260 8,788
Sep-98 10,010 9,236
Sep-98 9,730 9,080
Sep-98 9,340 8,845
Sep-98 9,590 9,106
Sep-98 9,740 9,292
Sep-98 9,810 9,364
Sep-98 9,900 9,434
Sep-98 9,670 9,194
Sep-98 9,680 9,205
Sep-98 9,650 9,240
Sep-98 9,690 9,293
Sep-98 9,850 9,620
Sep-98 9,530 9,410
Sep-98 9,520 9,428
Sep-98 9,510 9,463
Sep-98 9,260 9,466
Sep-98 9,040 9,178
Oct-98 8,610 8,901
Oct-98 8,740 9,048
Oct-98 8,660 8,921
Oct-98 8,930 8,885
Oct-98 8,830 8,759
Oct-98 8,570 8,658
Oct-98 8,860 8,883
Oct-98 9,110 9,003
Oct-98 9,070 8,977
Oct-98 9,280 9,074
Oct-98 9,790 9,453
Oct-98 9,920 9,533
Oct-98 10,060 9,587
Oct-98 10,020 9,601
Oct-98 9,990 9,655
Oct-98 10,130 9,732
Oct-98 10,010 9,662
Oct-98 9,770 9,677
Oct-98 9,580 9,614
Oct-98 9,730 9,638
Oct-98 9,930 9,799
Oct-98 10,090 9,914
Nov-98 10,280 10,031
Nov-98 10,020 10,024
Nov-98 10,240 10,095
Nov-98 10,440 10,230
Nov-98 10,520 10,297
Nov-98 10,390 10,199
Nov-98 10,480 10,181
Nov-98 10,430 10,116
Nov-98 10,360 10,086
Nov-98 10,540 10,159
Nov-98 10,730 10,250
Nov-98 10,690 10,281
Nov-98 10,830 10,328
Nov-98 10,890 10,401
Nov-98 10,980 10,500
Nov-98 11,290 10,722
Nov-98 11,130 10,675
Nov-98 11,260 10,710
Nov-98 11,420 10,759
Nov-98 11,180 10,501
Dec-98 11,250 10,606
Dec-98 11,110 10,569
Dec-98 10,970 10,379
Dec-98 11,120 10,619
Dec-98 11,360 10,718
Dec-98 11,430 10,661
Dec-98 11,470 10,680
Dec-98 11,220 10,513
Dec-98 11,290 10,526
Dec-98 11,010 10,298
Dec-98 11,320 10,493
Dec-98 11,390 10,485
Dec-98 11,380 10,648
Dec-98 11,610 10,721
Dec-98 11,820 10,854
Dec-98 11,840 10,861
Dec-98 12,110 11,086
Dec-98 12,130 11,066
Dec-98 12,090 11,059
Dec-98 12,460 11,206
Dec-98 12,340 11,117
Dec-98 12,400 11,093
Jan-99 12,320 11,082
Jan-99 12,380 11,233
Jan-99 12,760 11,482
Jan-99 12,720 11,458
Jan-99 12,650 11,506
Jan-99 12,500 11,405
Jan-99 12,230 11,185
Jan-99 12,260 11,139
Jan-99 12,080 10,939
Jan-99 12,240 11,219
Jan-99 12,290 11,288
Jan-99 12,290 11,340
Jan-99 12,130 11,146
Jan-99 12,250 11,056
Jan-99 12,280 11,135
Jan-99 12,500 11,301
Jan-99 12,620 11,218
Jan-99 12,730 11,419
Jan-99 12,870 11,548
Feb-99 12,780 11,488
Feb-99 12,670 11,388
Feb-99 12,960 11,479
Feb-99 12,770 11,266
Feb-99 12,590 11,184
Feb-99 12,570 11,224
Feb-99 12,200 10,975
Feb-99 12,220 11,041
Feb-99 12,690 11,317
Feb-99 12,410 11,101
Feb-99 12,720 11,207
Feb-99 12,480 11,046
Feb-99 12,590 11,165
Feb-99 12,690 11,183
Feb-99 13,080 11,480
Feb-99 13,090 11,471
Feb-99 12,960 11,311
Feb-99 12,870 11,235
Feb-99 12,940 11,175
Mar-99 12,980 11,155
Mar-99 12,970 11,059
Mar-99 13,040 11,079
Mar-99 13,220 11,250
Mar-99 13,560 11,510
Mar-99 13,590 11,575
Mar-99 13,600 11,549
Mar-99 13,680 11,613
Mar-99 13,800 11,710
Mar-99 13,590 11,682
Mar-99 13,680 11,797
Mar-99 13,570 11,789
Mar-99 13,500 11,712
Mar-99 13,760 11,881
Mar-99 13,450 11,725
Mar-99 13,270 11,704
Mar-99 12,920 11,390
Mar-99 12,860 11,448
Mar-99 13,410 11,641
Mar-99 13,410 11,576
Mar-99 13,680 11,823
Mar-99 13,640 11,738
Mar-99 13,540 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
--------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-21-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Retailing Fund 35.40% 34.87%
S&P 500-TM- Composite Stock Price Index 16.08% 14.21%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
14
<PAGE>
TECHNOLOGY FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES THAT ARE
INVOLVED IN THE TECHNOLOGY SECTOR, INCLUDING COMPUTER SOFTWARE AND SERVICE
COMPANIES, SEMICONDUCTOR MANUFACTURERS, NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT MANUFACTURERS, PC HARDWARE AND PERIPHERALS COMPANIES.
INCEPTION: APRIL 14, 1998
The impressive rally of Technology sector stocks was driven by consistent
earnings growth and the explosion of the Internet. Worldwide, the personal
computer industry grew 15% last year, led by strong U.S. demand. Companies with
consistent earnings were rewarded with enormous gains. Microsoft doubled during
the year to reach a stock market value of $450 billion, taking the title of
world's largest capitalized company from General Electric Co. Cisco Systems'
stock tripled. Lucent Technologies more than doubled surpassing the market value
of its former parent, AT&T Corp. The Fund's total return for the period ended
March 31,1999 was 70.20%.
CUMULATIVE FUND PERFORMANCE: APRIL 14, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TECHNOL S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 10,230 10,032
Apr-98 10,100 9,932
Apr-98 10,400 10,062
Apr-98 10,610 10,071
Apr-98 10,890 10,095
Apr-98 11,040 10,128
Apr-98 10,830 10,034
Apr-98 10,930 9,930
Apr-98 10,660 9,738
Apr-98 10,670 9,725
Apr-98 10,840 9,811
Apr-98 10,920 9,964
May-98 10,960 10,047
May-98 10,980 10,057
May-98 10,970 9,999
May-98 10,890 9,903
May-98 10,840 9,815
May-98 11,100 9,932
May-98 10,920 9,918
May-98 11,080 10,000
May-98 11,180 10,028
May-98 11,060 10,015
May-98 10,850 9,937
May-98 10,750 9,911
May-98 10,860 9,944
May-98 10,680 10,030
May-98 10,570 9,990
May-98 10,470 9,953
May-98 10,310 9,805
May-98 10,400 9,789
May-98 10,370 9,837
May-98 10,170 9,777
Jun-98 9,910 9,778
Jun-98 10,100 9,796
Jun-98 9,880 9,704
Jun-98 10,160 9,813
Jun-98 10,300 9,983
Jun-98 10,340 10,000
Jun-98 10,500 10,024
Jun-98 10,300 9,969
Jun-98 10,150 9,810
Jun-98 10,180 9,848
Jun-98 9,990 9,653
Jun-98 10,270 9,748
Jun-98 10,320 9,922
Jun-98 10,270 9,916
Jun-98 10,300 9,865
Jun-98 10,520 9,888
Jun-98 10,870 10,034
Jun-98 11,070 10,154
Jun-98 10,960 10,121
Jun-98 11,040 10,156
Jun-98 11,190 10,204
Jun-98 11,140 10,162
Jul-98 11,270 10,294
Jul-98 11,040 10,275
Jul-98 11,150 10,372
Jul-98 11,170 10,349
Jul-98 11,390 10,454
Jul-98 11,470 10,384
Jul-98 11,490 10,435
Jul-98 11,730 10,443
Jul-98 11,690 10,554
Jul-98 11,900 10,529
Jul-98 12,020 10,612
Jul-98 12,130 10,636
Jul-98 12,250 10,613
Jul-98 12,060 10,442
Jul-98 11,860 10,433
Jul-98 11,630 10,215
Jul-98 11,570 10,225
Jul-98 11,680 10,283
Jul-98 11,510 10,130
Jul-98 11,360 10,085
Jul-98 11,790 10,243
Jul-98 11,500 10,044
Aug-98 11,460 9,970
Aug-98 11,080 9,609
Aug-98 11,220 9,692
Aug-98 11,520 9,766
Aug-98 11,520 9,764
Aug-98 11,500 9,708
Aug-98 11,270 9,581
Aug-98 11,470 9,717
Aug-98 11,300 9,634
Aug-98 11,250 9,525
Aug-98 11,510 9,712
Aug-98 11,790 9,870
Aug-98 11,740 9,841
Aug-98 11,680 9,784
Aug-98 11,540 9,690
Aug-98 11,520 9,753
Aug-98 11,580 9,795
Aug-98 11,510 9,717
Aug-98 11,000 9,344
Aug-98 10,610 9,207
Aug-98 9,590 8,582
Sep-98 10,210 8,911
Sep-98 10,300 8,877
Sep-98 10,180 8,804
Sep-98 10,120 8,729
Sep-98 10,810 9,173
Sep-98 10,600 9,018
Sep-98 10,370 8,785
Sep-98 10,780 9,044
Sep-98 10,970 9,229
Sep-98 11,040 9,300
Sep-98 11,140 9,370
Sep-98 10,790 9,132
Sep-98 10,780 9,143
Sep-98 11,040 9,177
Sep-98 11,090 9,230
Sep-98 11,540 9,555
Sep-98 11,350 9,345
Sep-98 11,560 9,364
Sep-98 11,520 9,399
Sep-98 11,480 9,402
Sep-98 11,090 9,115
Oct-98 10,500 8,841
Oct-98 10,410 8,986
Oct-98 9,830 8,860
Oct-98 9,640 8,824
Oct-98 9,470 8,700
Oct-98 9,390 8,599
Oct-98 9,960 8,822
Oct-98 10,330 8,942
Oct-98 10,010 8,916
Oct-98 10,210 9,012
Oct-98 10,760 9,388
Oct-98 10,750 9,468
Oct-98 10,940 9,522
Oct-98 10,720 9,536
Oct-98 11,150 9,589
Oct-98 11,290 9,666
Oct-98 11,230 9,596
Oct-98 11,460 9,611
Oct-98 11,360 9,548
Oct-98 11,570 9,573
Oct-98 11,720 9,733
Oct-98 11,760 9,847
Nov-98 11,930 9,963
Nov-98 11,770 9,956
Nov-98 12,130 10,026
Nov-98 12,220 10,161
Nov-98 12,340 10,226
Nov-98 12,400 10,130
Nov-98 12,510 10,112
Nov-98 12,640 10,047
Nov-98 12,540 10,017
Nov-98 12,450 10,089
Nov-98 12,580 10,180
Nov-98 12,670 10,211
Nov-98 12,860 10,257
Nov-98 12,930 10,330
Nov-98 12,980 10,428
Nov-98 13,430 10,649
Nov-98 13,390 10,603
Nov-98 13,470 10,637
Nov-98 13,640 10,686
Nov-98 13,120 10,429
Dec-98 13,710 10,534
Dec-98 13,650 10,497
Dec-98 13,340 10,308
Dec-98 13,830 10,547
Dec-98 14,240 10,645
Dec-98 14,200 10,588
Dec-98 14,270 10,607
Dec-98 13,930 10,442
Dec-98 14,170 10,454
Dec-98 13,660 10,228
Dec-98 14,050 10,422
Dec-98 13,950 10,414
Dec-98 14,250 10,576
Dec-98 14,620 10,648
Dec-98 15,110 10,781
Dec-98 15,030 10,787
Dec-98 15,490 11,011
Dec-98 15,380 10,991
Dec-98 15,560 10,984
Dec-98 15,480 11,130
Dec-98 15,380 11,041
Dec-98 15,340 11,017
Jan-99 15,580 11,007
Jan-99 15,930 11,156
Jan-99 16,340 11,403
Jan-99 16,420 11,380
Jan-99 16,510 11,428
Jan-99 16,860 11,328
Jan-99 16,310 11,109
Jan-99 16,310 11,063
Jan-99 15,990 10,864
Jan-99 16,510 11,143
Jan-99 16,960 11,211
Jan-99 17,080 11,263
Jan-99 16,580 11,070
Jan-99 16,310 10,981
Jan-99 16,570 11,060
Jan-99 17,270 11,224
Jan-99 17,020 11,142
Jan-99 17,580 11,341
Jan-99 17,910 11,469
Feb-99 17,870 11,409
Feb-99 17,520 11,311
Feb-99 17,690 11,401
Feb-99 16,910 11,190
Feb-99 16,520 11,108
Feb-99 16,760 11,147
Feb-99 15,980 10,900
Feb-99 16,160 10,966
Feb-99 16,990 11,239
Feb-99 16,320 11,025
Feb-99 16,220 11,130
Feb-99 15,610 10,970
Feb-99 15,780 11,089
Feb-99 15,920 11,106
Feb-99 16,540 11,402
Feb-99 16,800 11,393
Feb-99 16,460 11,234
Feb-99 16,290 11,159
Feb-99 15,740 11,099
Mar-99 15,720 11,079
Mar-99 15,320 10,984
Mar-99 15,470 11,003
Mar-99 15,610 11,173
Mar-99 16,030 11,432
Mar-99 16,520 11,497
Mar-99 16,400 11,471
Mar-99 16,360 11,533
Mar-99 16,360 11,631
Mar-99 16,050 11,603
Mar-99 16,430 11,716
Mar-99 16,630 11,708
Mar-99 16,580 11,632
Mar-99 16,760 11,800
Mar-99 16,330 11,645
Mar-99 16,250 11,625
Mar-99 15,780 11,312
Mar-99 16,140 11,370
Mar-99 16,570 11,562
Mar-99 16,470 11,497
Mar-99 17,140 11,743
Mar-99 17,150 11,658
Mar-99 17,020 11,529
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
---------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-14-98) (4-29-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Technology Fund 70.20% 55.90%
S&P 500-TM- Stock Index 15.29% 17.52%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S & P 500 STOCK INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR CLASS
SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
15
<PAGE>
TELECOMMUNICATIONS FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES ENGAGED IN THE
DEVELOPMENT, MANUFACTURE, OR SALE OF COMMUNICATIONS SERVICES OR COMMUNICATIONS
EQUIPMENT.
INCEPTION: APRIL 1, 1998
An explosion of corporate merger activity was a major theme of the
Telecommunications sector during the period. Mergers such as Bell Atlantic with
GTE and World Com with MCI, were the industry's response to the
Telecommunications Act of 1996, which ruled that local telephone companies, long
distance carriers and cable television operators could enter each other's
markets. The heightened consolidation was viewed favorably by investors as the
sector posted solid gains and outperformed the general market. The Fund's total
return for the period ended March 31,1999 was 30.30%.
CUMULATIVE FUND PERFORMANCE: APRIL 1, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TELECOMM TCCOM ADV S&P 500
<S> <C> <C> <C>
Apr-98 10,000 10,000 10,000
Apr-98 10,110 10,110 10,107
Apr-98 10,210 10,210 10,131
Apr-98 10,080 10,080 10,119
Apr-98 9,940 9,940 10,013
Apr-98 9,840 9,840 9,941
Apr-98 9,950 9,950 10,023
Apr-98 9,800 9,800 10,014
Apr-98 9,920 9,920 10,069
Apr-98 9,960 9,960 10,101
Apr-98 9,970 9,970 10,000
Apr-98 10,090 10,090 10,131
Apr-98 10,100 10,100 10,140
Apr-98 10,060 10,060 10,164
Apr-98 10,090 10,090 10,197
Apr-98 9,950 9,950 10,103
Apr-98 9,870 9,870 9,998
Apr-98 9,700 9,700 9,805
Apr-98 9,690 9,690 9,792
Apr-98 9,740 9,740 9,878
Apr-98 9,880 9,880 10,033
May-98 9,960 9,960 10,116
May-98 10,090 10,090 10,126
May-98 10,040 10,040 10,068
May-98 9,880 9,880 9,971
May-98 9,780 9,780 9,883
May-98 9,880 9,880 10,000
May-98 9,870 9,870 9,986
May-98 9,910 9,910 10,069
May-98 9,810 9,810 10,097
May-98 9,790 9,790 10,083
May-98 9,740 9,740 10,005
May-98 9,740 9,740 9,979
May-98 9,740 9,740 10,012
May-98 9,920 9,920 10,098
May-98 9,930 9,930 10,059
May-98 9,940 9,940 10,021
May-98 9,810 9,810 9,872
May-98 9,790 9,790 9,856
May-98 9,830 9,830 9,905
May-98 9,790 9,790 9,844
Jun-98 9,780 9,780 9,845
Jun-98 9,880 9,880 9,864
Jun-98 9,800 9,800 9,771
Jun-98 9,860 9,860 9,880
Jun-98 10,050 10,050 10,052
Jun-98 10,000 10,000 10,068
Jun-98 10,050 10,050 10,093
Jun-98 10,000 10,000 10,037
Jun-98 9,800 9,800 9,878
Jun-98 9,860 9,860 9,916
Jun-98 9,610 9,610 9,719
Jun-98 9,710 9,710 9,814
Jun-98 9,900 9,900 9,991
Jun-98 9,840 9,840 9,984
Jun-98 9,890 9,890 9,932
Jun-98 9,960 9,960 9,956
Jun-98 10,220 10,220 10,102
Jun-98 10,080 10,080 10,223
Jun-98 10,080 10,080 10,191
Jun-98 10,080 10,080 10,226
Jun-98 10,120 10,120 10,274
Jun-98 10,130 10,130 10,232
Jul-98 10,270 10,220 10,365
Jul-98 10,240 10,200 10,345
Jul-98 10,390 10,340 10,444
Jul-98 10,390 10,340 10,420
Jul-98 10,470 10,430 10,525
Jul-98 10,400 10,340 10,455
Jul-98 10,420 10,370 10,507
Jul-98 10,520 10,460 10,515
Jul-98 10,610 10,560 10,627
Jul-98 10,710 10,660 10,602
Jul-98 10,830 10,780 10,685
Jul-98 10,890 11,050 10,709
Jul-98 11,110 10,990 10,685
Jul-98 11,040 10,940 10,514
Jul-98 11,000 10,710 10,505
Jul-98 10,770 10,900 10,285
Jul-98 10,960 10,780 10,295
Jul-98 10,840 10,490 10,353
Jul-98 10,550 10,490 10,199
Jul-98 10,550 10,680 10,154
Jul-98 10,740 10,510 10,313
Jul-98 10,570 10,510 10,113
Aug-98 10,490 10,430 10,039
Aug-98 10,010 9,960 9,675
Aug-98 10,110 10,050 9,759
Aug-98 10,230 10,180 9,833
Aug-98 10,140 10,090 9,831
Aug-98 10,050 9,990 9,774
Aug-98 9,880 9,820 9,647
Aug-98 10,010 9,950 9,784
Aug-98 9,980 9,920 9,700
Aug-98 9,790 9,730 9,590
Aug-98 10,040 9,980 9,779
Aug-98 10,220 10,160 9,937
Aug-98 10,180 10,120 9,909
Aug-98 10,160 10,100 9,851
Aug-98 10,000 9,940 9,757
Aug-98 10,090 10,030 9,819
Aug-98 10,090 10,030 9,862
Aug-98 10,000 9,940 9,784
Aug-98 9,550 9,490 9,408
Aug-98 9,640 9,580 9,270
Aug-98 9,010 8,950 8,641
Sep-98 9,360 9,300 8,972
Sep-98 9,280 9,220 8,938
Sep-98 9,180 9,120 8,864
Sep-98 9,190 9,130 8,788
Sep-98 9,740 9,680 9,236
Sep-98 9,560 9,500 9,080
Sep-98 9,320 9,260 8,845
Sep-98 9,580 9,510 9,106
Sep-98 9,720 9,660 9,292
Sep-98 9,650 9,580 9,364
Sep-98 9,700 9,640 9,434
Sep-98 9,240 9,180 9,194
Sep-98 9,430 9,360 9,205
Sep-98 9,360 9,290 9,240
Sep-98 9,390 9,330 9,293
Sep-98 9,820 9,750 9,620
Sep-98 9,610 9,550 9,410
Sep-98 9,620 9,560 9,428
Sep-98 9,650 9,590 9,463
Sep-98 9,710 9,640 9,466
Sep-98 9,350 9,290 9,178
Oct-98 9,210 9,140 8,901
Oct-98 9,340 9,270 9,048
Oct-98 9,170 9,100 8,921
Oct-98 9,130 9,070 8,885
Oct-98 9,120 9,050 8,759
Oct-98 9,110 9,050 8,658
Oct-98 9,110 9,050 8,883
Oct-98 9,180 9,110 9,003
Oct-98 9,230 9,160 8,977
Oct-98 9,460 9,390 9,074
Oct-98 9,850 9,780 9,453
Oct-98 9,630 9,560 9,533
Oct-98 9,700 9,620 9,587
Oct-98 9,750 9,680 9,601
Oct-98 9,910 9,830 9,655
Oct-98 9,970 9,890 9,732
Oct-98 9,900 9,830 9,662
Oct-98 10,030 9,950 9,677
Oct-98 10,080 10,000 9,614
Oct-98 10,040 9,960 9,638
Oct-98 10,230 10,150 9,799
Oct-98 10,360 10,280 9,914
Nov-98 10,420 10,340 10,031
Nov-98 10,500 10,420 10,024
Nov-98 10,540 10,460 10,095
Nov-98 10,670 10,580 10,230
Nov-98 10,700 10,610 10,297
Nov-98 10,620 10,540 10,199
Nov-98 10,570 10,490 10,181
Nov-98 10,540 10,460 10,116
Nov-98 10,400 10,320 10,086
Nov-98 10,390 10,310 10,159
Nov-98 10,560 10,480 10,250
Nov-98 10,670 10,590 10,281
Nov-98 10,740 10,660 10,328
Nov-98 10,880 10,800 10,401
Nov-98 10,950 10,870 10,500
Nov-98 11,110 11,020 10,722
Nov-98 11,090 11,010 10,675
Nov-98 11,220 11,130 10,710
Nov-98 11,290 11,190 10,759
Nov-98 10,960 10,870 10,501
Dec-98 11,090 11,000 10,606
Dec-98 11,000 10,910 10,569
Dec-98 11,060 10,970 10,379
Dec-98 11,370 11,280 10,619
Dec-98 11,570 11,470 10,718
Dec-98 11,540 11,440 10,661
Dec-98 11,600 11,500 10,680
Dec-98 11,470 11,370 10,513
Dec-98 11,430 11,330 10,526
Dec-98 11,160 11,070 10,298
Dec-98 11,400 11,310 10,493
Dec-98 11,370 11,280 10,485
Dec-98 11,590 11,500 10,648
Dec-98 11,700 11,600 10,721
Dec-98 12,070 11,970 10,854
Dec-98 11,920 11,820 10,861
Dec-98 12,260 12,170 11,086
Dec-98 12,210 12,120 11,066
Dec-98 12,340 12,250 11,059
Dec-98 12,590 12,490 11,206
Dec-98 12,360 12,270 11,117
Dec-98 12,420 12,320 11,093
Jan-99 12,410 12,320 11,082
Jan-99 12,810 12,710 11,233
Jan-99 13,190 13,090 11,482
Jan-99 13,060 12,960 11,458
Jan-99 13,130 13,030 11,506
Jan-99 12,930 12,830 11,405
Jan-99 12,640 12,550 11,185
Jan-99 12,630 12,540 11,139
Jan-99 12,460 12,360 10,939
Jan-99 12,890 12,800 11,219
Jan-99 13,450 13,350 11,288
Jan-99 13,590 13,490 11,340
Jan-99 13,170 13,080 11,146
Jan-99 13,150 13,050 11,056
Jan-99 13,010 12,920 11,135
Jan-99 13,230 13,130 11,301
Jan-99 13,160 13,060 11,218
Jan-99 13,470 13,370 11,419
Jan-99 13,500 13,390 11,548
Feb-99 13,460 13,360 11,488
Feb-99 13,230 13,130 11,388
Feb-99 13,330 13,230 11,479
Feb-99 13,020 12,920 11,266
Feb-99 12,780 12,680 11,184
Feb-99 12,950 12,850 11,224
Feb-99 12,610 12,510 10,975
Feb-99 12,570 12,470 11,041
Feb-99 13,020 12,920 11,317
Feb-99 12,720 12,630 11,101
Feb-99 12,890 12,790 11,207
Feb-99 12,650 12,550 11,046
Feb-99 12,940 12,830 11,165
Feb-99 12,940 12,840 11,183
Feb-99 13,390 13,280 11,480
Feb-99 13,170 13,060 11,471
Feb-99 13,170 13,070 11,311
Feb-99 13,040 12,940 11,235
Feb-99 12,900 12,800 11,175
Mar-99 12,790 12,690 11,155
Mar-99 12,610 12,520 11,059
Mar-99 12,630 12,530 11,079
Mar-99 12,730 12,630 11,250
Mar-99 13,060 12,950 11,510
Mar-99 13,150 13,050 11,575
Mar-99 13,160 13,050 11,549
Mar-99 13,160 13,050 11,613
Mar-99 13,270 13,160 11,710
Mar-99 13,180 13,070 11,682
Mar-99 13,260 13,150 11,797
Mar-99 13,260 13,150 11,789
Mar-99 13,180 13,070 11,712
Mar-99 13,250 13,140 11,881
Mar-99 13,040 12,930 11,725
Mar-99 12,950 12,830 11,704
Mar-99 12,590 12,480 11,390
Mar-99 12,760 12,640 11,448
Mar-99 12,990 12,870 11,641
Mar-99 12,970 12,850 11,576
Mar-99 13,220 13,100 11,823
Mar-99 13,070 12,960 11,738
Mar-99 13,030 12,910 11,608
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-1-98) (4-1-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Telecommunications Fund 30.30% 29.10%
S&P 500-TM- Composite Stock Price Index 16.08% 16.08%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
16
<PAGE>
TRANSPORTATION FUND
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN COMPANIES ENGAGED IN
PROVIDING TRANSPORTATION SERVICES OR COMPANIES ENGAGED IN THE DESIGN,
MANUFACTURE, DISTRIBUTION, OR SALE OF TRANSPORTATION EQUIPMENT.
INCEPTION: APRIL 2, 1998
During the period, the airline industry, a major component of the Transportation
sector, enjoyed lower fuel costs; however, the group continued to underperform
the overall market. The global economic slowdown hurt carriers like AMR's
American Airlines due to its reliance on international routes and over capacity
in domestic routes. Railroad stocks, like Burlington Northern Santa Fe, were
troubled by slower traffic growth due to weakness in heavy industries and grain
export markets. The Fund's total return for the period ended March 31,1999 was
- -20.10%.
CUMULATIVE FUND PERFORMANCE: APRIL 2, 1998--MARCH 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TRANSPORTATION S&P 500
<S> <C> <C>
Apr-98 10,000 10,000
Apr-98 10,020 10,024
Apr-98 9,940 10,012
Apr-98 9,800 9,907
Apr-98 9,670 9,836
Apr-98 9,740 9,917
Apr-98 9,720 9,908
Apr-98 9,760 9,962
Apr-98 9,860 9,994
Apr-98 9,890 9,894
Apr-98 9,920 10,024
Apr-98 9,820 10,032
Apr-98 9,830 10,057
Apr-98 9,810 10,089
Apr-98 9,700 9,996
Apr-98 9,540 9,892
Apr-98 9,300 9,701
Apr-98 9,300 9,688
Apr-98 9,420 9,773
Apr-98 9,490 9,926
May-98 9,450 10,009
May-98 9,520 10,018
May-98 9,420 9,961
May-98 9,260 9,865
May-98 9,280 9,778
May-98 9,370 9,894
May-98 9,310 9,881
May-98 9,300 9,962
May-98 9,380 9,990
May-98 9,420 9,976
May-98 9,310 9,899
May-98 9,240 9,873
May-98 9,240 9,906
May-98 9,310 9,992
May-98 9,260 9,952
May-98 9,240 9,915
May-98 9,160 9,768
May-98 9,030 9,752
May-98 9,070 9,800
May-98 9,070 9,739
Jun-98 8,950 9,741
Jun-98 8,890 9,759
Jun-98 8,940 9,667
Jun-98 8,920 9,775
Jun-98 9,020 9,945
Jun-98 9,090 9,962
Jun-98 9,260 9,986
Jun-98 9,150 9,931
Jun-98 9,060 9,773
Jun-98 8,990 9,811
Jun-98 8,900 9,616
Jun-98 8,940 9,711
Jun-98 8,980 9,885
Jun-98 8,920 9,878
Jun-98 8,910 9,827
Jun-98 8,880 9,850
Jun-98 8,860 9,995
Jun-98 8,900 10,115
Jun-98 8,930 10,083
Jun-98 8,940 10,118
Jun-98 9,040 10,165
Jun-98 9,060 10,123
Jul-98 9,150 10,255
Jul-98 9,120 10,236
Jul-98 9,270 10,333
Jul-98 9,300 10,309
Jul-98 9,310 10,414
Jul-98 9,320 10,344
Jul-98 9,270 10,396
Jul-98 9,250 10,403
Jul-98 9,380 10,514
Jul-98 9,220 10,489
Jul-98 9,200 10,572
Jul-98 9,150 10,596
Jul-98 9,120 10,572
Jul-98 9,030 10,402
Jul-98 9,060 10,393
Jul-98 8,920 10,176
Jul-98 8,800 10,186
Jul-98 8,840 10,243
Jul-98 8,760 10,091
Jul-98 8,680 10,046
Jul-98 8,770 10,204
Jul-98 8,600 10,006
Aug-98 8,520 9,932
Aug-98 8,260 9,572
Aug-98 8,260 9,656
Aug-98 8,290 9,729
Aug-98 8,340 9,727
Aug-98 8,220 9,671
Aug-98 8,080 9,544
Aug-98 8,210 9,680
Aug-98 8,030 9,597
Aug-98 7,950 9,489
Aug-98 8,030 9,676
Aug-98 8,180 9,832
Aug-98 8,070 9,804
Aug-98 8,030 9,746
Aug-98 7,890 9,653
Aug-98 7,930 9,715
Aug-98 7,980 9,758
Aug-98 7,770 9,680
Aug-98 7,460 9,309
Aug-98 7,440 9,172
Aug-98 7,140 8,549
Sep-98 7,230 8,877
Sep-98 7,130 8,843
Sep-98 7,010 8,770
Sep-98 6,990 8,695
Sep-98 7,300 9,138
Sep-98 7,130 8,984
Sep-98 6,940 8,752
Sep-98 7,090 9,009
Sep-98 7,360 9,194
Sep-98 7,500 9,265
Sep-98 7,550 9,335
Sep-98 7,350 9,097
Sep-98 7,350 9,108
Sep-98 7,340 9,142
Sep-98 7,500 9,195
Sep-98 7,620 9,519
Sep-98 7,470 9,310
Sep-98 7,470 9,328
Sep-98 7,530 9,363
Sep-98 7,380 9,366
Sep-98 7,120 9,081
Oct-98 6,870 8,807
Oct-98 6,960 8,952
Oct-98 6,800 8,826
Oct-98 6,820 8,791
Oct-98 6,670 8,667
Oct-98 6,370 8,566
Oct-98 6,580 8,788
Oct-98 6,670 8,908
Oct-98 6,600 8,882
Oct-98 6,740 8,978
Oct-98 7,150 9,353
Oct-98 7,430 9,432
Oct-98 7,480 9,486
Oct-98 7,480 9,499
Oct-98 7,390 9,553
Oct-98 7,420 9,629
Oct-98 7,350 9,559
Oct-98 7,360 9,574
Oct-98 7,390 9,512
Oct-98 7,370 9,536
Oct-98 7,430 9,696
Oct-98 7,670 9,809
Nov-98 7,860 9,925
Nov-98 7,790 9,918
Nov-98 7,840 9,988
Nov-98 7,970 10,122
Nov-98 7,980 10,187
Nov-98 7,800 10,091
Nov-98 7,660 10,074
Nov-98 7,600 10,009
Nov-98 7,610 9,979
Nov-98 7,670 10,051
Nov-98 7,740 10,142
Nov-98 7,780 10,172
Nov-98 7,880 10,218
Nov-98 7,810 10,291
Nov-98 7,850 10,389
Nov-98 7,980 10,609
Nov-98 8,050 10,562
Nov-98 8,020 10,597
Nov-98 8,060 10,645
Nov-98 7,910 10,389
Dec-98 7,980 10,493
Dec-98 7,990 10,457
Dec-98 7,870 10,269
Dec-98 7,920 10,507
Dec-98 8,020 10,604
Dec-98 7,970 10,548
Dec-98 7,900 10,567
Dec-98 7,800 10,402
Dec-98 7,700 10,415
Dec-98 7,560 10,189
Dec-98 7,560 10,382
Dec-98 7,540 10,374
Dec-98 7,710 10,535
Dec-98 7,800 10,607
Dec-98 7,820 10,740
Dec-98 7,810 10,746
Dec-98 7,870 10,969
Dec-98 7,850 10,949
Dec-98 7,850 10,942
Dec-98 7,900 11,087
Dec-98 8,000 10,999
Dec-98 8,060 10,975
Jan-99 8,030 10,965
Jan-99 8,180 11,114
Jan-99 8,420 11,360
Jan-99 8,420 11,337
Jan-99 8,570 11,385
Jan-99 8,410 11,285
Jan-99 8,200 11,067
Jan-99 8,090 11,021
Jan-99 7,930 10,823
Jan-99 8,050 11,100
Jan-99 8,100 11,169
Jan-99 7,940 11,220
Jan-99 7,890 11,028
Jan-99 7,790 10,939
Jan-99 7,850 11,018
Jan-99 7,880 11,181
Jan-99 7,770 11,100
Jan-99 7,790 11,298
Jan-99 8,020 11,425
Feb-99 8,100 11,366
Feb-99 7,980 11,268
Feb-99 8,080 11,358
Feb-99 8,090 11,147
Feb-99 8,060 11,066
Feb-99 7,970 11,105
Feb-99 7,860 10,858
Feb-99 7,820 10,924
Feb-99 7,880 11,197
Feb-99 7,740 10,983
Feb-99 7,820 11,088
Feb-99 7,800 10,929
Feb-99 7,780 11,047
Feb-99 7,830 11,064
Feb-99 8,010 11,358
Feb-99 7,950 11,350
Feb-99 7,990 11,191
Feb-99 7,900 11,116
Feb-99 7,860 11,056
Mar-99 7,900 11,037
Mar-99 7,970 10,942
Mar-99 7,910 10,962
Mar-99 7,960 11,131
Mar-99 8,130 11,388
Mar-99 8,070 11,453
Mar-99 8,020 11,427
Mar-99 7,960 11,490
Mar-99 7,960 11,586
Mar-99 7,980 11,559
Mar-99 8,220 11,672
Mar-99 8,170 11,664
Mar-99 8,060 11,588
Mar-99 8,250 11,755
Mar-99 8,090 11,601
Mar-99 8,010 11,580
Mar-99 7,830 11,269
Mar-99 7,860 11,327
Mar-99 7,990 11,518
Mar-99 7,930 11,453
Mar-99 8,000 11,698
Mar-99 8,130 11,614
Mar-99 7,990 11,485
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN
-------------------------------------------
SINCE INCEPTION TO 3-31-99
INVESTOR CLASS ADVISOR CLASS
(4-2-98) (6-9-98)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Transportation Fund -20.10% -14.15%
S&P 500-TM- Composite Stock Price Index 14.85% 15.02%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 COMPOSITE STOCK
PRICE INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT
FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPH IS BASED ON INVESTOR CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
17
<PAGE>
RYDEX SERIES TRUST
ENERGY FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
COMMON STOCKS 97.8%
BP Amoco Plc., Sponsored ADR........... 24,961 $ 2,519,501
Exxon Corp............................. 28,125 1,984,570
Mobil Corp............................. 18,049 1,588,312
Chevron Corp........................... 15,102 1,335,583
Royal Dutch Petroleum Co., NY Shares... 24,798 1,289,496
Schlumberger Ltd....................... 15,713 945,726
Enron Corp............................. 14,166 910,165
Halliburton Co......................... 18,094 696,619
Atlantic Richfield Co.................. 9,420 687,660
Texaco, Inc............................ 11,575 656,881
Phillips Petroleum Co.................. 10,474 494,897
Unocal Corp............................ 9,926 365,401
USX-Marathon Group..................... 12,677 348,618
Baker Hughes, Inc...................... 13,447 326,933
Burlington Resources, Inc.............. 7,294 291,304
Coastal Corp........................... 8,728 288,024
Occidental Petroleum Corp.............. 14,292 257,256
Conoco, Inc............................ 7,842 192,619
Vastar Resources, Inc.................. 4,006 191,287
Amerada Hess Corp...................... 3,718 187,062
Anadarko Petroleum Corp................ 4,947 186,749
Diamond Offshore Drilling, Inc......... 5,578 176,404
Tosco Corp............................. 6,304 156,418
Sonat, Inc............................. 4,524 135,720
Sunoco, Inc............................ 3,721 134,189
Ashland, Inc........................... 3,059 125,228
Union Pacific Resources Group, Inc..... 10,289 122,182
Transocean Offshore, Inc............... 4,129 118,967
Kerr-McGee Corp........................ 3,552 116,550
Enron Oil & Gas Co..................... 6,314 104,970
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
Apache Corp............................ 4,023 $ 104,849
Weatherford International, Inc.*....... 4,001 104,526
Noble Drilling Corp.*.................. 5,402 93,522
Santa Fe International Corp............ 4,721 88,224
Global Marine, Inc.*................... 7,131 83,789
Murphy Oil Corp........................ 1,849 76,734
Ultramar Diamond Shamrock Corp......... 3,495 75,579
Smith International, Inc............... 1,514 60,560
ENSCO International, Inc............... 4,255 56,645
-----------
Total Common Stocks
(Cost $16,546,153)............... 17,679,719
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.2%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810%, due 04/01/99 (Note 2)........ $107,731 107,731
4.850%, due 04/01/99 (Note 2)........ 88,720 88,720
4.875%, due 04/01/99 (Note 2)........ 203,549 203,549
-----------
Total Repurchase Agreements (Cost
$400,000)........................ 400,000
-----------
Total Investments 100% (Cost
$16,946,153)..................... $18,079,719
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 18
<PAGE>
RYDEX SERIES TRUST
FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
COMMON STOCKS 97.7%
American International Group, Inc...... 29,242 $ 3,527,315
BankAmerica Corp....................... 48,043 3,393,037
Citigroup, Inc......................... 33,204 2,120,906
Freddie Mac............................ 28,566 1,978,196
Chase Manhattan Corp................... 23,561 1,915,804
Morgan Stanley Dean Witter & Co........ 18,330 1,831,854
Bank One Corp.......................... 32,812 1,806,711
Wells Fargo & Co....................... 45,966 1,611,683
American Express Co.................... 12,651 1,486,492
First Union Corp....................... 26,986 1,442,064
Charles Schwab Corp.................... 12,277 1,180,127
Fannie Mae............................. 19,359 1,105,883
Merrill Lynch & Co..................... 11,046 976,881
Associates First Capital Corp., Class
A.................................... 20,312 914,040
Allstate Corp.......................... 22,899 848,694
Bank Of New York Co., Inc.............. 21,119 758,964
U.S. Bancorp........................... 20,255 689,936
Washington Mutual, Inc................. 16,557 676,767
Household International, Inc........... 13,474 614,751
J. P. Morgan & Co., Inc................ 4,912 606,018
National City Corp..................... 9,090 603,349
Fleet Financial Group, Inc............. 15,862 596,808
MBNA Corp.............................. 22,318 532,842
Marsh & McLennan Cos., Inc............. 7,157 530,960
Mellon Bank Corp....................... 7,295 513,386
American General Corp.................. 7,003 493,712
Fifth Third Bancorp.................... 7,459 491,828
CIGNA Corp............................. 5,746 481,587
PNC Bank Corp.......................... 8,388 466,058
Wachovia Corp.......................... 5,659 459,440
Equitable Companies, Inc............... 6,233 436,310
AFLAC, Inc............................. 7,395 402,565
KeyCorp................................ 12,704 385,090
State Street Corp...................... 4,481 368,282
SunTrust Banks, Inc.................... 5,849 364,100
Hartford Financial Services Group,
Inc.................................. 6,355 361,043
BankBoston Corp........................ 8,263 357,891
Aetna, Inc............................. 3,947 327,601
BB&T Corp.............................. 8,675 313,927
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
Aon Corp............................... 4,742 $ 299,932
Progressive Corp....................... 2,023 290,300
Lincoln National Corp.................. 2,826 279,421
Northern Trust Corp.................... 3,099 275,230
Conseco, Inc........................... 8,794 271,515
Comerica, Inc.......................... 4,337 270,791
Chubb Corp............................. 4,552 266,577
Transamerica Corp...................... 3,484 247,364
Loews Corp............................. 3,173 236,785
Bankers Trust Corp..................... 2,660 234,745
Mercantile Bancorporation, Inc......... 4,389 208,477
St. Paul Cos., Inc..................... 6,579 204,360
Lehman Brothers Holdings, Inc.......... 3,333 199,147
Franklin Resources, Inc................ 7,067 198,759
SLM Holding Corp....................... 4,625 193,094
Summit Bancorp......................... 4,846 188,994
UNUM Corp.............................. 3,862 183,686
Huntington Bancshares, Inc............. 5,846 180,861
Cincinnati Financial Corp.............. 4,660 169,799
MBIA, Inc.............................. 2,773 160,834
SAFECO Corp............................ 3,797 153,541
-----------
Total Common Stocks (Cost
$39,646,443)..................... 42,687,114
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.3%
Repurchase agreements collateralized by
U.S. Treasury Obligations:
4.810%, due 04/01/99 (Note 2).......... $269,328 269,328
4.850%, due 04/01/99 (Note 2).......... 221,800 221,800
4.875%, due 04/01/99 (Note 2).......... 508,872 508,872
-----------
Total Repurchase Agreements (Cost
$1,000,000)...................... 1,000,000
-----------
Total Investments 100% (Cost
$40,646,443)..................... $43,687,114
-----------
-----------
</TABLE>
See Notes to Financial Statements. 19
<PAGE>
RYDEX SERIES TRUST
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 97.2%
Merck & Co., Inc....................... 17,535 $ 1,406,088
Pfizer, Inc............................ 9,558 1,326,172
Bristol-Myers Squibb Co................ 19,109 1,228,948
Johnson & Johnson...................... 11,421 1,070,005
Eli Lilly & Co......................... 9,340 792,732
American Home Products Corp............ 10,448 681,732
Abbott Laboratories.................... 13,964 653,690
Schering-Plough Corp. Wisconsin........ 11,723 648,428
Glaxo Welcome Plc., Sponsored ADR...... 9,249 619,105
Medtronic, Inc......................... 8,262 592,798
Warner-Lambert Co...................... 7,907 523,345
Pharmacia & Upjohn, Inc................ 7,632 476,046
SmithKline Beecham Plc., Sponsored
ADR.................................. 6,339 453,239
Baxter International, Inc.............. 4,049 267,234
Guidant Corp........................... 4,265 258,032
McKesson HBOC, Inc..................... 3,896 257,136
Cardinal Health, Inc................... 3,851 254,166
Boston Scientific Corp.*............... 5,545 224,919
Columbia/HCA Healthcare Corp........... 8,840 167,407
Becton, Dickinson and Co............... 3,696 141,603
United HealthCare Corp................. 2,636 138,720
Tenet Healthcare Corp.*................ 4,391 83,155
Allergan, Inc.......................... 935 82,163
WellPoint Heath Networks, Inc.*........ 947 71,794
Stryker Corp........................... 1,365 68,847
Biomet, Inc............................ 1,585 66,471
Forest Laboratories, Inc.*............. 1,171 66,015
Healthsouth Corp.*..................... 5,952 61,752
Watson Pharmaceuticals,
Inc.*................................ 1,347 59,436
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Bausch & Lomb, Inc..................... 784 $ 50,960
Mylan Laboratories, Inc................ 1,826 50,101
ALZA Corp.*............................ 1,233 47,162
Health Management Associates, Inc.,
Class A*............................. 3,566 43,461
Hillenbrand Industries, Inc............ 940 43,416
Humana, Inc............................ 2,369 40,865
C. R. Bard, Inc........................ 759 38,282
Sybron International Corp.*............ 1,461 36,525
Foundation Health Systems, Inc., Class
A*................................... 2,963 36,112
HCR Manor Care, Inc.*.................. 1,569 35,793
Gilead Sciences, Inc.*................. 772 35,126
Universal Health Services, Inc., Class
B*................................... 770 33,303
Rexall Sundown, Inc.*.................. 1,735 33,290
Beckman Coulter, Inc................... 724 31,856
Oxford Health Plans, Inc.*............. 2,035 31,797
Bergen Brunswig Corp., Class A......... 1,546 30,920
Dentsply International, Inc............ 1,328 30,876
PacifiCare Health Systems, Inc., Class
B*................................... 435 29,689
St. Jude Medical, Inc.*................ 1,191 29,031
ICN Pharmaceuticals, Inc............... 1,083 27,278
Mallinckrodt, Inc...................... 1,009 26,865
Steris Corp.*.......................... 965 25,693
Agouron Pharmaceuticals, Inc.*......... 453 25,623
Omnicare, Inc.......................... 1,268 24,171
Lincare Holdings, Inc.*................ 824 23,175
PacifiCare Health Systems, Inc., Class
A*................................... 376 22,630
Total Renal Care Holdings, Inc.*....... 2,049 22,539
Covance, Inc.*......................... 828 20,752
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 20
<PAGE>
RYDEX SERIES TRUST
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
Amerisource Health Corp., Class A*..... 605 $ 20,683
<S> <C> <C>
Quorum Health Group, Inc.*............. 1,829 18,290
Safeskin Corp.*........................ 2,381 17,709
Dura Pharmaceuticals, Inc.*............ 1,174 16,583
Integrated Health Services, Inc.*...... 2,305 12,677
Genesis Health Ventures,
Inc.*................................ 1,537 7,493
Perrigo Co.*........................... 1,020 7,395
Vencor, Inc.*.......................... 3,045 3,997
-----------
Total Common Stocks
(Cost $11,931,573)............... 13,773,296
-----------
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
-------- -----------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.8%
Repurchase Agreements Collateralized by
U. S. Treasury Obligations:
4.810%, due 04/01/99
(Note 2)........................... $107,731 $ 107,731
4.850%, due 04/01/99
(Note 2)........................... 88,720 88,720
4.875%, due 04/01/99
(Note 2)........................... 203,549 203,549
-----------
Total Repurchase Agreements (Cost
$400,000)........................ 400,000
-----------
Total Investments 100% (Cost
$12,331,573)..................... $14,173,296
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 21
<PAGE>
RYDEX SERIES TRUST
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 98.2%
Microsoft Corp.*....................... 38,464 $ 3,447,336
Intel Corp............................. 18,365 2,183,139
Cisco Systems, Inc.*................... 18,928 2,073,799
International Business Machines
Corp................................. 10,948 1,940,533
Lucent Technologies, Inc............... 17,920 1,930,880
America Online, Inc.*.................. 12,664 1,848,900
Dell Computer Corp.*................... 32,395 1,324,146
Hewlett-Packard Co..................... 17,208 1,166,918
EMC Corp.*............................. 8,544 1,091,496
Compaq Computer Corp................... 28,814 913,044
Sun Microsystems, Inc.*................ 6,523 814,967
Motorola, Inc.......................... 10,172 745,099
Texas Instruments, Inc................. 6,621 657,134
Oracle Corp.*.......................... 24,708 651,673
Yahoo!, Inc.*.......................... 3,345 563,214
Automatic Data Processing, Inc......... 10,322 427,073
Electronic Data Systems
Corp................................. 8,351 406,589
Applied Materials, Inc.*............... 6,327 390,297
Computer Associates International,
Inc.................................. 9,130 324,686
Tellabs, Inc.*......................... 3,292 321,793
First Data Corp........................ 7,492 320,283
Ascend Communications, Inc.*........... 3,676 307,635
Micron Technology, Inc................. 4,198 202,554
Solectron Corp.*....................... 4,033 195,853
Gateway 2000, Inc.*.................... 2,649 181,622
At Home Corp., Series A*............... 1,000 157,500
QUALCOMM, Inc.*........................ 1,211 150,618
Compuware Corp.*....................... 6,228 148,694
Computer Sciences Corp. *.............. 2,692 148,565
Novell, Inc.*.......................... 5,703 143,644
3Com Corp.*............................ 6,080 141,740
BMC Software, Inc.*.................... 3,678 136,316
Paychex, Inc........................... 2,779 131,829
Linear Technology Corp................. 2,553 130,841
Unisys Corp............................ 4,417 122,296
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Maxim Integrated Products, Inc.*....... 2,259 $ 122,268
Seagate Technology, Inc.*.............. 4,133 122,182
Parametric Technology Corp.*........... 5,640 111,390
Ceridian Corp.......................... 3,018 110,346
ADC Telecommunications, Inc.*.......... 2,285 108,966
NCR Corp.*............................. 2,099 104,950
Perkin-Elmer Corp...................... 1,066 103,469
Apple Computer, Inc.*.................. 2,878 103,428
Analog Devices, Inc.*.................. 3,403 101,239
Xilinx, Inc.*.......................... 2,451 99,419
Altera Corp.*.......................... 1,649 98,115
Cadence Design Systems, Inc.*.......... 3,759 96,794
CMGI, Inc.*............................ 500 91,531
Excite, Inc.*.......................... 500 70,000
-----------
Total Common Stocks
(Cost $19,236,844)............... 27,286,803
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.8%
Repurchase Agreements Collateralized by
U. S. Treasury Obligations:
4.810% due 04/01/99 (Note 2)......... $134,664 134,664
4.850% due 04/01/99 (Note 2)......... 110,900 110,900
4.875% due 04/01/99 (Note 2)......... 254,436 254,436
-----------
Total Repurchase Agreements (Cost
$500,000)........................ 500,000
-----------
Total Investments 100% (Cost
$19,736,844)..................... $27,786,803
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 22
<PAGE>
RYDEX SERIES TRUST
BASIC MATERIALS FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 96.5%
E. I. DuPont de Nemours & Co........... 6,792 $ 394,361
Dow Chemical Co........................ 2,690 250,674
Monsanto Co............................ 5,049 231,938
Alcoa, Inc............................. 4,400 181,225
International Paper Co................. 3,688 155,587
Weyerhaeuser Co........................ 2,389 132,590
PPG Industries, Inc.................... 2,125 108,906
Air Products & Chemicals, Inc.......... 2,546 87,201
Fort James Corp........................ 2,648 83,909
Georgia-Pacific Corp................... 1,120 83,160
Imperial Chemical Industries Plc.,
Sponsored ADR........................ 2,182 78,143
Barrick Gold Corp...................... 4,513 77,003
Union Carbide Corp..................... 1,624 73,385
Rohm & Haas Co......................... 2,140 71,824
Alcan Aluminium, Ltd................... 2,731 70,494
Praxair, Inc........................... 1,899 68,483
Sherwin-Williams Co.................... 2,075 58,359
Union Camp Corp........................ 832 55,848
Morton International, Inc.............. 1,488 54,684
Willamette Industries, Inc............. 1,338 50,510
British Steel Plc., Sponsored ADR...... 2,379 48,026
Champion International Corp............ 1,148 47,140
Nucor Corp............................. 1,057 46,574
Minorco SA (Minerals & Resources Corp.,
Ltd.), Sponsored ADR................. 2,707 46,019
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Allegheny Teledyne, Inc................ 2,365 $ 44,787
Temple-Inland, Inc..................... 667 41,854
Reynolds Metals Co..................... 865 41,790
Eastman Chemical Co.................... 949 39,917
Mead Corp.............................. 1,247 38,345
Phelps Dodge Corp...................... 704 34,672
----------
Total Common Stocks
(Cost $2,714,206)................ 2,797,408
----------
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 3.5%
Repurchase Agreements Collateralized by
U. S. Treasury Obligations:
4.810% due 04/01/99
(Note 2)........................... $26,933 26,933
4.850% due 04/01/99
(Note 2)........................... 22,180 22,180
4.875% due 04/01/99
(Note 2)........................... 50,887 50,887
----------
Total Repurchase Agreements (Cost
$100,000)........................ 100,000
----------
Total Investments 100% (Cost
$2,814,206)...................... $2,897,408
----------
----------
</TABLE>
See Notes to Financial Statements. 23
<PAGE>
RYDEX SERIES TRUST
CONSUMER PRODUCTS FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 97.8%
Proctor & Gamble Co.................... 34,720 $ 3,400,390
Gillette Co............................ 45,584 2,709,399
Unilever N. V., NY Shares.............. 21,523 1,429,934
Colgate-Palmolive Co................... 15,314 1,408,888
Kimberly-Clark Corp.................... 28,340 1,358,549
Clorox Co.............................. 8,752 1,025,625
Omnicom Group, Inc..................... 12,604 1,007,532
Newell Rubbermaid, Inc................. 20,985 996,787
Interpublic Group of Cos.,
Inc.................................. 10,384 808,654
Nike, Inc., Class B.................... 13,543 781,262
Cintas Corp............................ 7,889 515,743
Avery Dennison Corp.................... 8,597 494,327
Estee Lauder Cos., Class A............. 4,579 432,716
V. F. Corp............................. 8,960 422,800
Outdoor Systems, Inc.*................. 13,775 413,250
Maytag Corp............................ 6,656 401,856
Black & Decker Corp.................... 6,542 362,672
Gucci Group N.V., NY Regular Shares.... 4,440 357,420
Whirlpool Corp......................... 5,681 308,904
International Flavors & Fragrances,
Inc.................................. 7,928 297,796
Leggett & Platt, Inc................... 14,706 294,120
Dial Corp.............................. 7,711 265,066
Tommy Hilfiger Corp.*.................. 3,515 242,096
Jones Apparel Group, Inc.*............. 7,834 218,862
Shaw Industries, Inc................... 10,513 194,491
Liz Claiborne, Inc..................... 4,825 157,416
Premark International, Inc............. 4,610 151,842
Snyder Communications, Inc............. 5,155 143,696
American Greetings Corp., Class A...... 4,876 123,728
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Clayton Homes, Inc..................... 10,790 $ 119,364
Catalina Marketing Corp.*.............. 1,378 118,336
Westpoint Stevens, Inc.*............... 4,226 117,007
Payless Shoesource, Inc.*.............. 2,512 116,808
Herman Miller, Inc..................... 6,349 115,869
CDW Computer Centers, Inc*............. 1,610 111,090
Arrow Electronics, Inc................. 7,144 107,160
Blyth Industries, Inc.*................ 3,675 86,822
Furniture Brands International,
Inc.*................................ 3,875 85,734
Ethan Allen Interiors, Inc............. 2,035 84,580
-----------
Total Common Stocks
(Cost $20,852,373)............... 21,788,591
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.2%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/1/99
(Note 2)........................... $134,664 134,664
4.850% due 04/1/99
(Note 2)........................... 110,900 110,900
4.875% due 04/1/99
(Note 2)........................... 254,436 254,436
-----------
Total Repurchase Agreements
(Cost $500,000).................. 500,000
-----------
Total Investments 100%
(Cost $21,352,373)............... $22,288,591
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 24
<PAGE>
RYDEX SERIES TRUST
LEISURE FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 97.9%
Time Warner, Inc....................... 9,589 $ 681,418
Walt Disney Co......................... 16,179 503,570
America Online, Inc.*.................. 2,517 367,482
McDonald's Corp........................ 7,788 352,894
Anheuser-Busch Cos., Inc............... 4,534 345,433
CBS Corp............................... 6,502 266,176
Carnival Corp.......................... 5,410 262,723
Philip Morris Cos., Inc................ 6,305 221,857
Comcast Corp., Special Class A......... 3,063 192,778
Cox Communications, Inc., Class A*..... 2,453 185,508
Seagram Co., Ltd....................... 3,696 184,800
Clear Channel Communications, Inc.*.... 2,449 164,236
Gannett Co., Inc....................... 2,583 162,729
News Corp., Ltd., Sponsored ADR........ 4,947 145,937
Tricon Global Restaurants, Inc.*....... 1,504 105,656
Harley-Davidson, Inc................... 1,512 86,940
Cendant Corp.*......................... 5,456 85,932
Marriott International, Inc., Class
A.................................... 2,411 81,070
Mattel, Inc............................ 2,865 71,267
Chancellor Media Corp.*................ 1,400 65,975
Royal Caribbean Cruises, Ltd........... 1,662 64,818
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Viacom, Inc., Class A*................. 693 $ 57,736
At Home Corp., Series A*............... 329 51,818
----------
Total Common Stocks
(Cost $3,719,979)................ 4,708,753
----------
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.1%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/01/99
(Note 2)........................... $26,933 26,933
4.850% due 04/01/99
(Note 2)........................... 22,180 22,180
4.875% due 04/01/99
(Note 2)........................... 50,887 50,887
----------
Total Repurchase Agreements
(Cost $100,000).................. 100,000
----------
Total Investments 100%
(Cost $3,819,979)................ $4,808,753
----------
----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 25
<PAGE>
RYDEX SERIES TRUST
RETAILING FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 98.0%
Wal-Mart Stores, Inc................... 67,929 $ 6,262,205
Home Depot, Inc........................ 85,036 5,293,491
McDonald's Corp........................ 82,644 3,744,806
Gap, Inc............................... 38,744 2,607,956
Dayton Hudson Corp..................... 29,917 1,993,220
Walgreen Co............................ 67,751 1,913,966
Amazon.com, Inc.*...................... 10,212 1,758,379
Lowe's Cos., Inc....................... 24,306 1,470,513
Costco Cos., Inc.*..................... 14,906 1,364,831
CVS Corp............................... 26,443 1,256,043
Sears, Roebuck & Co.................... 26,482 1,196,655
Staples, Inc.*......................... 31,864 1,047,529
May Department Stores Co............... 23,186 907,152
Kohl's Corp.*.......................... 10,941 775,443
TJX Cos., Inc.......................... 22,339 759,526
Tricon Global Restaurants, Inc.*....... 10,566 742,262
Best Buy Co., Inc.*.................... 13,947 725,244
J. C. Penney Co., Inc.................. 17,579 711,950
Office Depot, Inc.*.................... 16,987 625,334
Limited, Inc........................... 15,643 619,854
Federated Department Stores, Inc.*..... 14,495 581,612
Kmart Corp.*........................... 34,074 572,869
Circuit City Stores -
Circuit City Group, Inc.............. 6,944 532,084
Dollar General Corp.................... 14,495 492,830
Rite Aid Corp.......................... 17,886 447,150
Tandy Corp............................. 6,842 436,605
Nordstrom, Inc......................... 9,821 401,433
Bed Bath & Beyond, Inc.*............... 9,622 351,203
Starbucks Corp.*....................... 12,449 349,350
Toys R Us, Inc.*....................... 17,352 326,435
AutoZone, Inc.*........................ 10,368 314,928
Family Dollar Stores, Inc.............. 11,911 273,953
Saks, Inc.*............................ 9,908 257,608
Wendy's International, Inc............. 8,602 244,619
Consolidated Stores Corp.*............. 7,569 229,435
Darden Restaurants, Inc................ 9,523 196,412
Dillard's, Inc., Class A............... 7,106 180,315
Tiffany & Co........................... 2,392 178,802
Outback Steakhouse, Inc.*.............. 5,089 166,665
Harcourt General, Inc.................. 3,530 156,423
Barnes & Noble, Inc.*.................. 4,744 152,401
Ross Stores, Inc....................... 3,185 139,543
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
BJ's Wholesale Club, Inc.*............. 5,127 $ 135,545
Intimate Brands, Inc................... 2,719 130,852
Dollar Tree Stores, Inc.*.............. 4,089 126,503
Brinker International, Inc.*........... 4,558 117,653
Williams-Sonoma, Inc.*................. 3,852 108,819
Payless Shoesource, Inc................ 2,324 108,066
Claire's Stores, Inc................... 3,319 99,985
Fastenal Co............................ 2,623 91,969
Papa John's International, Inc.*....... 2,042 90,103
Zale Corp.*............................ 2,486 84,990
Longs Drug Stores, Inc................. 2,692 81,938
Neiman Marcus Group, Inc............... 3,387 76,631
CBRL Group, Inc........................ 4,242 76,356
Borders Group, Inc.*................... 5,329 74,939
The Men's Wearhouse, Inc.*............. 2,583 74,584
OfficeMax, Inc.*....................... 8,639 74,511
Lands' End, Inc.*...................... 2,090 72,366
CKE Restaurants, Inc................... 3,584 70,784
Venator Group, Inc.*................... 9,374 66,204
General Nutrition Cos.*................ 4,716 66,024
PetSmart, Inc.*........................ 8,072 64,828
-----------
Total Common Stocks
(Cost $35,633,489)............... 44,652,684
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.0%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/01/99
(Note 2)........................... $242,395 242,395
4.850% due 04/01/99
(Note 2)........................... 199,620 199,620
4.875% due 04/01/99
(Note 2)........................... 457,985 457,985
-----------
Total Repurchase Agreements
(Cost $900,000).................. 900,000
-----------
Total Investments 100%
(Cost $36,533,489)............... $45,552,684
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 26
<PAGE>
RYDEX SERIES TRUST
TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 98.6%
AT&T Corp.............................. 20,282 $ 1,618,757
MCI WorldCom, Inc.*.................... 16,053 1,421,694
Lucent Technologies, Inc............... 11,967 1,289,444
SBC Communications, Inc................ 18,860 888,777
Bell Atlantic Corp..................... 14,969 773,710
BellSouth Corp......................... 18,844 754,938
Nokia Corp., Class A, Sponsored ADR.... 4,188 652,281
Vodafone Group Plc., Sponsored ADR..... 3,313 622,016
AirTouch Communications, Inc.*......... 6,144 593,664
Ameritech Corp......................... 10,032 580,602
GTE Corp............................... 9,289 561,984
LM Ericsson Telephone Co., Series B,
Sponsored ADR........................ 19,127 455,462
Northern Telecom, Ltd.................. 7,098 440,963
Sprint Corp., FON Group................ 3,681 361,198
Cable & Wireless Plc., Sponsored ADR... 8,583 317,035
BCE, Inc............................... 6,707 297,204
U.S. West, Inc......................... 5,371 295,741
British Telecomm Plc., Sponsored ADR... 1,729 283,880
Qwest Communications International,
Inc.*................................ 3,764 271,361
Alcatel Alsthom S.A.................... 10,636 242,634
Telefonos de Mexico, S.A., Sponsored
ADR.................................. 3,094 202,657
Sprint PCS Group*...................... 4,496 199,229
Tellabs, Inc.*......................... 1,954 191,003
Alltel Corp............................ 1,974 123,128
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Nextel Communications, Inc., Class
A*................................... 2,868 $ 105,040
Frontier Corp.......................... 1,836 95,243
QUALCOMM, Inc.*........................ 746 92,784
Century Telephone Enterprises, Inc..... 983 69,056
ADC Telecommunications, Inc.*.......... 1,444 68,860
PanAmSat Corp.*........................ 1,597 49,707
-----------
Total Common Stocks
(Cost $11,115,541)............... 13,920,052
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.4%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/01/99 (Note 2)......... $ 53,866 53,866
4.850% due 04/01/99 (Note 2)......... 44,360 44,360
4.875% due 04/01/99 (Note 2)......... 101,774 101,774
-----------
Total Repurchase Agreements (Cost
$200,000)........................ 200,000
-----------
Total Investments 100% (Cost
$11,315,541)..................... $14,120,052
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 27
<PAGE>
RYDEX SERIES TRUST
TRANSPORTATION FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 96.7%
FDX Corp.*............................. 2,754 $ 255,606
Burlington Northern Santa Fe Corp...... 6,111 200,899
AMR Corp............................... 3,390 198,525
Southwest Airlines Co.................. 6,261 189,380
Union Pacific Corp..................... 3,453 184,520
Delta Air Lines, Inc................... 2,636 183,202
Goodyear Tire & Rubber Co.............. 2,902 144,556
Norfolk Southern Corp.................. 5,293 139,603
CSX Corp............................... 3,030 117,981
Dana Corp.............................. 3,092 117,486
Kansas City Southern Industries,
Inc.................................. 2,039 116,223
TRW, Inc............................... 2,229 101,420
Genuine Parts Co....................... 3,341 96,263
Canadian National Railway Co........... 1,580 87,888
Magna International, Inc., Class A..... 1,473 84,513
US Airways Group, Inc.*................ 1,621 79,125
UAL Corp............................... 989 76,895
PACCAR, Inc............................ 1,454 59,887
Federal-Mogul Corp..................... 1,253 53,879
Lear Corp.*............................ 1,241 52,975
Navistar International Corp............ 1,232 49,511
Comair Holdings, Inc................... 1,812 42,820
Northwest Airlines Corp.*.............. 1,512 42,052
CNF Transportation, Inc................ 890 33,653
GATX Corp.............................. 917 30,204
Airborne Freight Corp.................. 899 27,980
Cooper Tire & Rubber Co................ 1,411 25,927
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Expeditors International of Washington,
Inc.................................. 459 $ 24,786
Borg-Warner Automotive, Inc............ 494 23,619
Alaska Airgroup, Inc.*................. 488 23,180
Newport News Shipbuilding,
Inc.................................. 657 20,819
Swift Transportation Co., Inc.*........ 788 20,390
Atlas Air, Inc.*....................... 637 18,354
Asa Holdings, Inc...................... 536 18,023
Arvin Industries, Inc.................. 480 16,170
----------
Total Common Stocks (Cost
$2,695,265)...................... 2,958,314
----------
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 3.3%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/01/99 (Note 2)......... $26,933 26,933
4.850% due 04/01/99 (Note 2)......... 22,180 22,180
4.875% due 04/01/99 (Note 2)......... 50,887 50,887
----------
Total Repurchase Agreements (Cost
$100,000)........................ 100,000
----------
Total Investments 100% (Cost
$2,795,265)...................... $3,058,314
----------
----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 28
<PAGE>
RYDEX SERIES TRUST
ENERGY SERVICES FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS 97.7%
Schlumberger Ltd....................... 295,878 $17,808,157
Halliburton Co......................... 446,037 17,172,426
Baker Hughes, Inc...................... 295,333 7,180,274
Diamond Offshore Drilling, Inc......... 179,313 5,670,774
Transocean Offshore, Inc............... 139,741 4,026,288
Weatherford International, Inc.*....... 135,446 3,538,527
Noble Drilling Corp.*.................. 182,256 3,155,307
Global Marine, Inc..................... 241,003 2,831,785
Smith International, Inc............... 67,807 2,712,280
Nabors Industries, Inc.*............... 140,065 2,547,432
ENSCO International, Inc............... 190,461 2,535,512
Cooper Cameron Corp.*.................. 73,976 2,505,937
R & B Falcon Corp.*.................... 269,001 2,370,571
BJ Services Co.*....................... 98,265 2,303,086
McDermott International,
Inc.................................. 82,155 2,079,548
Tidewater, Inc......................... 77,210 1,997,808
Helmerich & Payne, Inc................. 68,677 1,558,109
Rowan Cos., Inc........................ 116,505 1,478,157
Global Industries Ltd.*................ 126,691 1,282,746
Eastern Enterprises.................... 31,413 1,142,648
Varco International, Inc.*............. 89,828 999,337
Seacor Smit, Inc.*..................... 17,615 947,907
National-Oilwell, Inc.*................ 73,653 851,613
Marine Drilling Co., Inc.*............. 72,731 800,041
Newpark Resources, Inc.*............... 95,308 690,983
Pride International, Inc.*............. 70,020 577,665
Houston Exploration Co.*............... 33,209 577,006
Tuboscope, Inc.*....................... 62,123 559,107
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
Oceaneering International, Inc.*....... 31,456 $ 475,772
Veritas DGC, Inc.*..................... 31,747 450,411
Input/Output, Inc.*.................... 70,036 442,102
Carbo Ceramics, Inc.................... 20,293 438,836
Parker Drilling Co.*................... 106,894 380,810
Western Gas Resources,
Inc.................................. 44,678 335,085
-----------
Total Common Stocks (Cost
$84,668,249)..................... 94,424,047
-----------
<CAPTION>
FACE
AMOUNT
----------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.3%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/01/99 (Note 2)......... $ 592,522 592,522
4.850% due 04/01/99 (Note 2)......... 487,960 487,960
4.875% due 04/01/99 (Note 2)......... 1,119,518 1,119,518
-----------
Total Repurchase Agreements (Cost
$2,200,000)...................... 2,200,000
-----------
Total Investments 100% (Cost
$86,868,249)..................... $96,624,047
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 29
<PAGE>
RYDEX SERIES TRUST
BANKING FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 98.7%
BankAmerica Corp....................... 13,135 $ 927,659
Chase Manhattan Corp................... 8,672 705,142
Bank One Corp.......................... 12,090 665,706
Wells Fargo Co......................... 16,859 591,119
First Union Corp....................... 9,932 530,741
Bank of New York Co., Inc.............. 7,813 280,780
U.S. Bancorp........................... 7,455 253,936
Washington Mutual, Inc................. 6,094 249,092
J. P. Morgan & Co., Inc................ 1,808 223,062
National City Corp..................... 3,352 222,489
Fleet Financial Group, Inc............. 5,838 219,655
Firstar Corp........................... 2,247 201,106
Mellon Bank Corp....................... 2,682 188,746
Fifth Third Bancorp.................... 2,744 180,932
PNC Bank Corp.......................... 3,091 171,744
Wachovia Corp.......................... 2,083 169,114
KeyCorp................................ 4,676 141,741
State Street Corp...................... 1,650 135,609
SunTrust Banks, Inc.................... 2,153 134,024
BankBoston Corp........................ 3,045 131,887
BB&T Corp.............................. 3,193 115,547
Northern Trust Corp.................... 1,144 101,602
Comerica, Inc.......................... 1,598 99,775
Bankers Trust Corp..................... 979 86,397
Regions Financial Corp................. 2,271 78,633
Mercantile Bancorporation, Inc......... 1,615 76,712
Summit Bancorp......................... 1,781 69,459
Huntington Bancshares, Inc............. 2,165 66,980
Union Planters Corp.................... 1,460 64,149
Southtrust Corp........................ 1,718 64,103
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Marshall & Ilsley Corp................. 1,090 $ 60,427
UnionBanCal Corp....................... 1,691 57,600
Synovus Financial Corp................. 2,782 56,857
Golden West Financial Corp............. 585 55,867
Amsouth Bancorporation................. 1,221 55,555
Zions Bancorporation................... 802 53,333
Republic New York Corp................. 1,098 50,645
Charter One Financial, Inc............. 1,688 48,715
First Tennessee National Corp.......... 1,317 48,235
Old Kent Financial Corp................ 1,068 45,123
----------
Total Common Stocks
(Cost $7,377,263).............. 7,679,998
----------
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.3%
Repurchase Agreements Collateralized by
U. S. Treasury Obligations:
4.810% due 04/01/99 (Note 2)......... $26,933 26,933
4.850% due 04/01/99 (Note 2)......... 22,180 22,180
4.875% due 04/01/99 (Note 2)......... 50,887 50,887
----------
Total Repurchase Agreements (Cost
$100,000)........................ 100,000
----------
Total Investments 100% (Cost
$7,477,263)...................... $7,779,998
----------
----------
</TABLE>
See Notes to Financial Statements. 30
<PAGE>
RYDEX SERIES TRUST
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 97.8%
Amgen, Inc.*........................... 113,843 $ 8,523,991
Genentech, Inc., Special Common*....... 54,101 4,794,701
Biogen, Inc.*.......................... 29,410 3,361,931
Immunex Corp.*......................... 24,186 2,013,485
MedImmune, Inc.*....................... 28,166 1,667,075
Chiron Corp.*.......................... 75,329 1,652,530
Genzyme Corp. - General Division*...... 31,889 1,608,401
BioChem Pharma, Inc.*.................. 45,646 972,830
Agouron Pharmaceuticals, Inc.*......... 16,838 952,399
Centocor, Inc.*........................ 20,423 755,651
Gilead Sciences, Inc.*................. 16,092 732,186
Pioneer Hi-Bred International, Inc..... 19,289 725,749
Andrx Corp.*........................... 7,957 725,082
ICOS Corp.*............................ 21,397 722,149
ALZA Corp.*............................ 15,497 592,791
Millennium Pharmaceuticals, Inc.*...... 18,294 571,688
IDEC Pharmaceuticals Corp.*............ 10,571 543,085
Affymetrix, Inc.*...................... 12,107 421,475
Human Genome Sciences, Inc.*........... 11,827 410,249
Alkermes, Inc.*........................ 13,114 357,357
Vertex Pharmaceuticals, Inc.*.......... 13,356 337,239
Transkaryotic Therapies, Inc.*......... 10,079 320,008
Incyte Pharmaceuticals, Inc.*.......... 14,625 293,414
Enzon, Inc.*........................... 19,018 280,516
Liposome Co., Inc.*.................... 20,146 270,712
Inhale Therapeutic Systems, Inc.*...... 8,270 224,324
Algo Pharmaceuticals Corp.*............ 9,026 222,265
Coulter Pharmaceutical, Inc.*.......... 8,645 188,029
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Ligand Pharmaceuticals, Inc., Class
B*................................... 22,505 $ 184,260
Scios, Inc.*........................... 20,223 183,271
Organogenesis, Inc.*................... 15,597 180,340
Serologicals Corp.*.................... 12,810 173,742
Bio-Technology General Corp.*.......... 28,207 168,360
Aviron*................................ 8,285 167,771
Sugen, Inc.*........................... 8,643 165,838
Genset, Sponsored ADR*................. 10,705 164,589
Protein Design Labs, Inc.*............. 10,743 161,816
EntreMed, Inc.*........................ 7,509 158,628
Triangle Pharmaceuticals,
Inc.*................................ 13,936 148,941
Cephalon, Inc.*........................ 16,686 146,003
Isis Pharmaceuticals, Inc.*............ 15,633 140,697
COR Therapeutics, Inc.*................ 14,080 139,920
Geltex Pharmaceuticals, Inc.*.......... 9,691 136,280
Aphton Corp.*.......................... 8,355 135,769
Enzo Biochem, Inc.*.................... 14,414 135,131
Gensia Sicor, Inc.*.................... 46,110 129,684
PathoGenesis Corp.*.................... 9,358 124,578
SuperGen, Inc.*........................ 11,799 120,940
Immune Response Corp.*................. 13,593 119,788
Pharmacyclics, Inc.*................... 7,171 118,322
Regeneron Pharmaceuticals, Inc.*....... 15,854 105,033
Vical, Inc.*........................... 9,157 93,859
Texas Biotechnology Corp.*............. 19,736 92,513
Neurogen Corp.*........................ 8,377 89,529
Cell Genesys, Inc.*.................... 16,630 82,111
CryoLife, Inc.*........................ 7,334 80,674
XOMA Ltd.*............................. 25,980 79,564
Geron Corp.*........................... 7,770 77,700
Vivus, Inc.*........................... 18,425 73,700
Maxim Pharmaceuticals, Inc.*........... 5,778 65,003
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 31
<PAGE>
RYDEX SERIES TRUST
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Miravant Medical Technologies*......... 9,287 $ 63,848
Immunomedics, Inc.*.................... 21,935 56,894
Alexion Pharmaceuticals,
Inc.*................................ 6,532 55,114
Alliance Pharmaceutical Corp.*......... 19,185 52,759
Cytogen Corp.*......................... 49,801 51,357
Advanced Tissue Sciences, Inc.*........ 22,766 49,089
Myriad Genetics, Inc.*................. 5,449 49,041
Martek Biosciences Corp.*.............. 8,632 48,555
Genelabs Technologies, Inc.*........... 22,966 46,650
Creative BioMolecules, Inc.*........... 19,691 45,535
Genzyme Transgenics Corp.*............. 10,627 41,844
La Jolla Pharmaceutical Co.*........... 15,472 40,614
Diacrin, Inc.*......................... 7,262 38,126
Genzyme Corp. - Tissue Repair*......... 15,799 36,535
Sonus Pharmaceuticals, Inc.*........... 4,375 32,813
Amylin Pharmaceuticals, Inc.*.......... 28,304 30,073
Hyseq, Inc. *.......................... 9,963 29,889
NeoPath, Inc.*......................... 7,352 29,408
Genome Therapeutics Corp.*............. 9,302 29,069
ArQule, Inc.*.......................... 6,168 28,527
-----------
Total Common Stocks
(Cost $33,024,455)............... 39,241,406
-----------
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
-------- -----------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.2%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/01/99
(Note 2)........................... $242,395 $ 242,395
4.850% due 04/01/99
(Note 2)........................... 199,620 199,620
4.875% due 04/01/99
(Note 2)........................... 457,985 457,985
-----------
Total Repurchase Agreements
(Cost $900,000).................. 900,000
-----------
Total Investments 100%
(Cost $33,924,455)............... $40,141,406
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 32
<PAGE>
RYDEX SERIES TRUST
ELECTRONICS FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 97.6%
Intel Corp............................. 21,578 $ 2,565,085
EMC Corp.*............................. 18,491 2,362,225
Motorola, Inc.......................... 22,012 1,612,379
Texas Instruments, Inc................. 14,118 1,401,211
Applied Materials, Inc.*............... 13,075 806,564
Micron Technology, Inc................. 13,358 644,523
Solectron Corp.*....................... 12,832 623,154
Linear Technology Corp................. 8,124 416,355
Maxim Integrated Products, Inc.*....... 7,191 389,213
Seagate Technology, Inc.*.............. 13,152 388,806
ASM Lithography Holding,
N.V.*................................ 7,455 335,475
AMP, Inc............................... 5,901 316,810
Xilinx, Inc.*.......................... 7,797 316,279
Altera Corp.*.......................... 5,248 312,256
Broadcom Corp., Class A*............... 4,368 269,178
Analog Devices, Inc.*.................. 8,702 258,884
Teradyne, Inc.*........................ 4,539 247,659
Uniphase Corp.*........................ 2,141 246,483
LSI Logic Corp.*....................... 7,642 238,335
KLA Tencor Corp.*...................... 4,736 229,992
STMicroelectronics N.V., NY Shares..... 2,262 219,697
Vitesse Semiconductor Corp.*........... 4,010 203,006
Sanmina Corp.*......................... 3,063 195,266
Quantum Corp.*......................... 8,950 161,100
Storage Technology Corp.*.............. 5,389 150,218
Symbol Technologies, Inc.*............. 3,169 142,605
Flextronics International, Ltd.*....... 2,553 130,203
Advanced Micro Devices, Inc.*.......... 7,809 121,039
Molex, Inc............................. 4,117 120,937
PMC-Sierra, Inc.*...................... 1,668 118,741
Thomas & Betts Corp.................... 2,834 106,452
Novellus Systems, Inc.*................ 1,742 96,028
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
SCI Systems, Inc.*..................... 3,010 $ 89,171
Microchip Technology, Inc.*............ 2,532 87,671
National Semiconductor Corp.*.......... 8,339 77,657
ASE Test Ltd.*......................... 1,961 77,460
Atmel Corp.*........................... 4,971 75,497
Rambus, Inc.*.......................... 1,154 74,289
Arrow Electronics, Inc................. 4,774 71,610
AVX Corp............................... 4,314 69,024
Level One Communications, Inc.*........ 1,340 65,158
Avnet, Inc............................. 1,754 64,240
-----------
Total Common Stocks
(Cost $10,843,428)............... 16,497,935
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 2.4%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations:
4.810% due 04/1/99
(Note 2)........................... $107,731 107,731
4.850% due 04/1/99
(Note 2)........................... 88,720 88,720
4.875% due 04/1/99
(Note 2)........................... 203,549 203,549
-----------
Total Repurchase Agreements
(Cost $400,000).................. 400,000
-----------
Total Investments 100%
(Cost $11,243,428)............... $16,897,935
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 33
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL BASIC
ENERGY SERVICES HEALTH CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements................ $ 400,000 $ 1,000,000 $ 400,000 $ 500,000 $ 100,000
Investment Securities................ 17,679,719 42,687,114 13,773,296 27,286,803 2,797,408
----------- ----------- ----------- ----------- ----------
Securities at Value (Note 1) - See
Accompanying
Schedules.......................... 18,079,719 43,687,114 14,173,296 27,786,803 2,897,408
Receivable for Securities Sold....... -- 6,373,210 10,570,680 6,448,784 --
Investment Income Receivable......... 19,633 88,853 26,808 1,026 3,186
Cash in Custodian Bank............... 46,579 71,915 58,497 69,267 13,331
Receivable for Shares Purchased...... 611,710 167,351 223,498 2,459,786 1,740,598
Other Assets......................... 4,010 -- 33,360 -- 11,593
----------- ----------- ----------- ----------- ----------
Total Assets....................... 18,761,651 50,388,443 25,086,139 36,765,666 4,666,116
----------- ----------- ----------- ----------- ----------
LIABILITIES
Payable for Securities Purchased..... 118,274 -- -- -- 1,782,199
Liability for Shares Redeemed........ 553,379 6,700,088 11,006,806 10,020,907 10,463
Investment Advisory Fee Payable...... 7,897 44,998 18,158 26,300 4,825
Transfer Agent Fee Payable........... 2,322 13,235 5,340 7,735 1,419
Distribution and Service Fee
Payable............................ 297 11,107 1,816 3,156 34
Other Liabilities.................... 28,355 67,151 13,361 38,387 --
----------- ----------- ----------- ----------- ----------
Total Liabilities.................. 710,524 6,836,579 11,045,481 10,096,485 1,798,940
----------- ----------- ----------- ----------- ----------
NET ASSETS............................. $18,051,127 $43,551,864 $14,040,658 $26,669,181 $2,867,176
----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------
INVESTOR CLASS:
Net Assets........................... $17,442,043 $22,165,202 $14,016,207 $24,400,303 $2,179,269
Shares Outstanding................... 1,939,208 2,217,755 1,224,287 1,433,528 281,282
Net Asset Value Per Share............ $8.99 $9.99 $11.45 $17.02 $7.75
ADVISOR CLASS:
Net Assets........................... $609,084 $21,386,662 $24,451 $2,268,878 $687,907
Shares Outstanding................... 67,637 2,150,083 2,151 134,268 89,111
Net Asset Value Per Share............ $9.01 $9.95 $11.37 $16.90 $7.72
</TABLE>
See Notes to Financial Statements. 34
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
----------- ---------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements................ $ 500,000 $ 100,000 $ 900,000 $ 200,000 $ 100,000
Investment Securities................ 21,788,591 4,708,753 44,652,684 13,920,052 2,958,314
----------- ---------- ----------- --------------- ---------------
Securities at Value (Note 1) - See
Accompanying Schedules............. 22,288,591 4,808,753 45,552,684 14,120,052 3,058,314
Receivable for Securities Sold....... 2,815,528 178,817 623,968 -- 8,613,432
Investment Income Receivable......... 16,572 14,958 23,239 17,584 2,023
Cash in Custodian Bank............... 61,718 9,260 63,730 30,154 34,844
Receivable for Shares Purchased...... 67,154 21,839 551,909 3,959,540 458,812
Other Assets......................... 33 4,442 -- 2,378 9,538
----------- ---------- ----------- --------------- ---------------
Total Assets....................... 25,249,596 5,038,069 46,815,530 18,129,708 12,176,963
----------- ---------- ----------- --------------- ---------------
LIABILITIES
Payable for Securities Purchased..... -- -- -- 2,898,487 --
Liability for Shares Redeemed........ 2,946,491 214,320 1,105,848 987,824 9,147,301
Investment Advisory Fee Payable...... 18,284 6,717 63,276 1,312 4,762
Transfer Agent Fee Payable........... 5,378 1,976 18,611 385 1,401
Distribution and Service Fee
Payable............................ 8,720 4 7,030 933 2
Other Liabilities.................... 38,390 11,013 64,345 12,026 4,593
----------- ---------- ----------- --------------- ---------------
Total Liabilities.................. 3,017,263 234,030 1,259,110 3,900,967 9,158,059
----------- ---------- ----------- --------------- ---------------
NET ASSETS............................. $22,232,333 $4,804,039 $45,556,420 $ 14,228,741 $ 3,018,904
----------- ---------- ----------- --------------- ---------------
----------- ---------- ----------- --------------- ---------------
INVESTOR CLASS:
Net Assets........................... $1,280,450 $4,795,654 $45,219,391 $ 12,300,138 $ 3,014,490
Shares Outstanding................... 131,937 427,917 3,339,529 944,065 377,094
Net Asset Value Per Share............ $9.71 $11.21 $13.54 $13.03 $7.99
ADVISOR CLASS:
Net Assets........................... $20,951,883 $8,385 $337,029 $1,928,603 $4,414
Shares Outstanding................... 2,158,904 751 24,966 149,387 556
Net Asset Value Per Share............ $9.70 $11.16 $13.50 $12.91 $7.95
</TABLE>
See Notes to Financial Statements. 35
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (CONCLUDED)
- --------------------------------------------------------------------------------
March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY BIO-
SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Repurchase Agreements................ $ 2,200,000 $ 100,000 $ 900,000 $ 400,000
Investment Securities................ 94,424,047 7,679,998 39,241,406 16,497,935
----------- ---------- ----------- -----------
Securities at Value (Note 1) - See
Accompanying Schedules............. 96,624,047 7,779,998 40,141,406 16,897,935
Receivable for Securities Sold....... 7,863,309 10,550 3,556,472 --
Investment Income Receivable......... 24,021 29,281 2,001 1,612
Cash in Custodian Bank............... 98,939 62,857 66,441 28,650
Receivable for Shares Purchased...... 2,711,822 -- 57,297 4,037,625
Other Assets......................... 242 1,631 579 2,414
----------- ---------- ----------- -----------
Total Assets....................... 107,322,380 7,884,317 43,824,196 20,968,236
----------- ---------- ----------- -----------
LIABILITIES
Payable for Securities Purchased..... -- -- -- 1,156,840
Liability for Shares Redeemed........ 10,719,475 17,544 3,695,778 2,860,935
Investment Advisory Fee Payable...... 33,931 15,416 30,875 17,472
Transfer Agent Fee Payable........... 9,980 4,534 9,081 5,139
Distribution and Service Fee
Payable............................ 3,817 1,271 4,104 2,496
Other Liabilities.................... 96,538 15,684 41,397 87,801
----------- ---------- ----------- -----------
Total Liabilities.................. 10,863,741 54,449 3,781,235 4,130,683
----------- ---------- ----------- -----------
NET ASSETS............................. $96,458,639 $7,829,868 $40,042,961 $16,837,553
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
INVESTOR CLASS:
Net Assets........................... $74,135,210 $7,827,426 $38,205,023 $12,813,932
Shares Outstanding................... 12,321,083 892,679 2,981,991 914,113
Net Asset Value Per Share............ $6.02 $8.77 $12.81 $14.02
ADVISOR CLASS:
Net Assets........................... $22,323,429 $2,442 $1,837,938 $4,023,621
Shares Outstanding................... 3,715,406 279 145,234 288,260
Net Asset Value Per Share............ $6.01 $8.74 $12.66 $13.96
</TABLE>
See Notes to Financial Statements. 36
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
Period Ended March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND* FUND* FUND* FUND* FUND*
----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest............................. $ 2,572 $ 9,267 $ 11,804 $ 21,959 $ 767
Dividends, Net of Foreign Taxes
Withheld........................... 122,732 389,264 234,876 60,864 132,797
----------- ---------- ---------- ----------- -----------
Total Income....................... 125,304 398,531 246,680 82,823 133,564
----------- ---------- ---------- ----------- -----------
EXPENSES
Advisory Fees (Note 3)............... 56,392 224,408 219,227 342,246 51,654
Transfer Agent Fees (Note 3)......... 16,586 66,623 64,478 100,661 15,293
Audit and Outside Services........... 807 3,587 4,076 5,549 1,260
Accounting Fees (Note 3)............. 8,684 22,966 24,042 32,508 7,487
Legal................................ 696 2,317 2,815 3,622 998
Organizational Expenses.............. 29 85 110 148 725
Registration Fees.................... 1,637 2,685 9,308 12,645 1,715
Custodian Fees....................... 12,974 49,535 48,422 59,779 13,017
Distribution Fees--Advisor Class
(Note 3)........................... 3,216 11,610 18,768 21,643 5,742
Servicing Fees--Advisor Class
(Note 3)........................... 3,216 11,610 18,768 21,643 5,742
Miscellaneous........................ 7,678 47,501 24,788 30,270 2,593
----------- ---------- ---------- ----------- -----------
Total Expenses..................... 111,915 442,927 434,802 630,714 106,226
Custodian Fees Paid Indirectly
(Note 4)......................... 529 2,008 2,061 3,173 461
----------- ---------- ---------- ----------- -----------
Net Expenses....................... 111,386 440,919 432,741 627,541 105,765
----------- ---------- ---------- ----------- -----------
Net Investment Income (Loss)........... 13,918 (42,388) (186,061) (544,718) 27,799
----------- ---------- ---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on Investment
Securities........................... (2,729,989) 4,615,491 (343,071) 5,051,570 (1,963,215)
Net Change in Unrealized Appreciation
on Investments....................... 1,133,566 3,040,671 1,841,723 8,049,959 83,202
----------- ---------- ---------- ----------- -----------
Net Gain (Loss) on Investments....... (1,596,423) 7,656,162 1,498,652 13,101,529 (1,880,013)
----------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS...................... $(1,582,505) $7,613,774 $1,312,591 $12,556,811 $(1,852,214)
----------- ---------- ---------- ----------- -----------
----------- ---------- ---------- ----------- -----------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 21, 1998--ENERGY FUND INVESTOR CLASS, MAY 5,
1998--ENERGY FUND ADVISOR CLASS, APRIL 2, 1998--FINANCIAL SERVICES FUND INVESTOR
CLASS, APRIL 6, 1998--FINANCIAL SERVICES FUND ADVISOR CLASS, APRIL
17,1998--HEALTH CARE FUND INVESTOR CLASS, MAY 11, 1998--HEALTH CARE FUND ADVISOR
CLASS, APRIL 14, 1998--TECHNOLOGY FUND INVESTOR CLASS, APRIL 29,
1998--TECHNOLOGY FUND ADVISOR CLASS, APRIL 1, 1998--BASIC MATERIALS FUND
INVESTOR CLASS, AND APRIL 14, 1998--BASIC MATERIALS FUND ADVISOR CLASS.
See Notes to Financial Statements. 37
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF OPERATIONS (CONTINUED)
- --------------------------------------------------------------------------------
Period Ended March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND* FUND* FUND* FUND* FUND*
---------- ---------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest............................. $ 2,669 $ 1,186 $ 16,539 $ 4,342 $ 1,013
Dividends, Net of Foreign Taxes
Withheld........................... 65,181 42,822 182,241 183,265 57,652
---------- ---------- ----------- --------------- ---------------
Total Income....................... 67,850 44,008 198,780 187,607 58,665
---------- ---------- ----------- --------------- ---------------
EXPENSES
Advisory Fees (Note 3)............... 64,921 45,641 285,542 118,715 41,446
Transfer Agent Fees (Note 3)......... 19,094 13,424 83,983 34,916 12,190
Audit and Outside Services........... 812 642 5,187 1,888 652
Accounting Fees (Note 3)............. 8,750 7,413 27,688 14,839 6,719
Legal................................ 486 366 3,340 1,208 372
Organizational Expenses.............. 32 641 590 2,056 13
Registration Fees.................... 570 1,278 3,754 7,374 469
Custodian Fees....................... 10,510 11,736 52,699 29,463 11,336
Distribution Fees--Advisor Class
(Note 3)........................... 14,123 168 33,608 4,638 245
Servicing Fees--Advisor Class (Note
3)................................. 14,123 168 33,608 4,638 245
Miscellaneous........................ 14,190 4,900 20,358 16,108 4,052
---------- ---------- ----------- --------------- ---------------
Total Expenses..................... 147,611 86,377 550,357 235,843 77,739
Custodian Fees Paid Indirectly
(Note 4)......................... 789 408 2,553 1,076 371
---------- ---------- ----------- --------------- ---------------
Net Expenses....................... 146,822 85,969 547,804 234,767 77,368
---------- ---------- ----------- --------------- ---------------
Net Investment Loss.................... (78,972) (41,961) (349,024) (47,160) (18,703)
---------- ---------- ----------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on Investment
Securities........................... 156,727 268,558 (2,619,776) (526,000) (2,169,675)
Net Change in Unrealized Appreciation
on Investments....................... 936,219 988,774 9,019,195 2,804,511 263,049
---------- ---------- ----------- --------------- ---------------
Net Gain (Loss) on Investments....... 1,092,946 1,257,332 6,399,419 2,278,511 (1,906,626)
---------- ---------- ----------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS...................... $1,013,974 $1,215,371 $ 6,050,395 $ 2,231,351 $ (1,925,329)
---------- ---------- ----------- --------------- ---------------
---------- ---------- ----------- --------------- ---------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: JULY 6, 1998--CONSUMER PRODUCTS FUND INVESTOR
CLASS, AUGUST 17, 1998--CONSUMER PRODUCTS FUND ADVISOR CLASS, APRIL 1,
1998--LEISURE FUND INVESTOR CLASS, JUNE 3, 1998--LEISURE FUND ADVISOR CLASS,
APRIL 1, 1998-- RETAILING FUND INVESTOR CLASS, APRIL 21, 1999--RETAILING FUND
ADVISOR CLASS, APRIL 1, 1998--TELECOMMUNICATIONS FUND INVESTOR AND ADVISOR
CLASSES, APRIL 2, 1998--TRANSPORTATION FUND INVESTOR CLASS, AND JUNE 9,
1998--TRANSPORTATION FUND ADVISOR CLASS.
See Notes to Financial Statements. 38
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
Period Ended March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND* FUND* FUND* FUND*
------------ -------- -------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest............................. $ 9,051 $ 2,702 $ 16,672 $ 14,821
Dividends, Net of Foreign Taxes
Withheld........................... 65,029 211,996 288 83,165
Other Income......................... -- -- 360,402 --
------------ -------- -------------- ------------
Total Income....................... 74,080 214,698 377,362 97,986
------------ -------- -------------- ------------
EXPENSES
Advisory Fees (Note 3)............... 147,529 98,045 203,735 287,912
Transfer Agent Fees (Note 3)......... 43,391 28,671 59,922 84,680
Audit and Outside Services........... 2,276 2,277 2,539 3,460
Accounting Fees (Note 3)............. 17,085 11,907 22,396 24,166
Legal................................ 1,728 1,446 1,514 1,674
Organizational Expenses.............. 2,005 1,781 1,912 670
Registration Fees.................... 4,581 2,626 8,984 5,847
Custodian Fees....................... 31,094 25,845 45,908 41,245
Distribution Fees--Advisor Class
(Note 3)........................... 5,380 6,970 23,535 23,782
Servicing Fees--Advisor Class (Note
3)................................. 5,380 6,970 23,535 23,782
Miscellaneous........................ 24,519 10,113 38,223 84,878
------------ -------- -------------- ------------
Total Expenses..................... 284,968 196,651 432,203 582,096
Custodian Fees Paid Indirectly
(Note 4)......................... 1,319 876 1,822 2,583
------------ -------- -------------- ------------
Net Expenses....................... 283,649 195,775 430,381 579,513
------------ -------- -------------- ------------
Net Investment Income (Loss)........... (209,569) 18,923 (53,019) (481,527)
------------ -------- -------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on Investment
Securities........................... (22,977,833) 161,995 (10,986,292) 11,895,141
Net Change in Unrealized Appreciation
on Investments....................... 9,755,798 302,735 6,216,951 5,654,507
------------ -------- -------------- ------------
Net Gain (Loss) on Investments....... (13,222,035) 464,730 (4,769,341) 17,549,648
------------ -------- -------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS...................... $(13,431,604) $483,653 $ (4,822,360) $ 17,068,121
------------ -------- -------------- ------------
------------ -------- -------------- ------------
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--ENERGY SERVICES FUND INVESTOR
CLASS, APRIL 2, 1998--ENERGY SERVICES ADVISOR CLASS, APRIL 1, 1998--BANKING FUND
INVESTOR AND ADVISOR CLASS, BIOTECHNOLOGY INVESTOR AND ADVISOR CLASS,
ELECTRONICS FUND INVESTOR CLASS, AND APRIL 2, 1998--ELECTRONICS FUND ADVISOR
CLASS.
See Notes to Financial Statements. 39
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Period Ended March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL BASIC
ENERGY SERVICES HEALTH CARE TECHNOLOGY MATERIALS
FUND* FUND* FUND* FUND* FUND*
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net Investment Income (Loss)......... $ 13,918 $ (42,388) $ (186,061) $ (544,718) $ 27,799
Net Realized Gain (Loss) on
Investments........................ (2,729,989) 4,615,491 (343,071) 5,051,570 (1,963,215)
Net Change in Unrealized Appreciation
on Investments..................... 1,133,566 3,040,671 1,841,723 8,049,959 83,202
----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations.................... (1,582,505) 7,613,774 1,312,591 12,556,811 (1,852,214)
DISTRIBUTIONS TO SHAREHOLDERS.......... -- -- -- -- --
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (NOTE 7)................ 19,633,632 35,938,090 12,728,067 14,112,370 4,719,390
----------- ----------- ----------- ----------- -----------
Net Increase in Net Assets........... 18,051,127 43,551,864 14,040,658 26,669,181 2,867,176
NET ASSETS--BEGINNING OF PERIOD........ -- -- -- -- --
----------- ----------- ----------- ----------- -----------
NET ASSETS--END OF PERIOD.............. $18,051,127 $43,551,864 $14,040,658 $26,669,181 $ 2,867,176
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</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. 40
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
Period Ended March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND* FUND* FUND* FUND* FUND*
----------- ---------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net Investment Loss.................. $ (78,972) $ (41,961) $ (349,024) $ (47,160) $ (18,703)
Net Realized Gain (Loss) on
Investments........................ 156,727 268,558 (2,619,776) (526,000) (2,169,675)
Net Change in Unrealized Appreciation
on Investments..................... 936,219 988,774 9,019,195 2,804,511 263,049
----------- ---------- ----------- --------------- ---------------
Net Increase (Decrease) in Net Assets
from Operations...................... 1,013,974 1,215,371 6,050,395 2,231,351 (1,925,329)
DISTRIBUTIONS TO SHAREHOLDERS.......... -- -- -- -- --
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (NOTE 7)................ 21,218,359 3,588,668 39,506,025 11,997,390 4,944,233
----------- ---------- ----------- --------------- ---------------
Net Increase in Net Assets........... 22,232,333 4,804,039 45,556,420 14,228,741 3,018,904
NET ASSETS--BEGINNING OF PERIOD........ -- -- -- -- --
----------- ---------- ----------- --------------- ---------------
NET ASSETS--END OF PERIOD.............. $22,232,333 $4,804,039 $45,556,420 $ 14,228,741 $ 3,018,904
----------- ---------- ----------- --------------- ---------------
----------- ---------- ----------- --------------- ---------------
</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. 41
<PAGE>
RYDEX SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
Period Ended March 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY BIO-
SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND* FUND* FUND* FUND*
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net Investment Income (Loss)......... $ (209,569) $ 18,923 $ (53,019) $ (481,527)
Net Realized Gain (Loss) on
Investments........................ (22,977,833) 161,995 (10,986,292) 11,895,141
Net Change in Unrealized Appreciation
on Investments..................... 9,755,798 302,735 6,216,951 5,654,507
------------ ---------- ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations.................... (13,431,604) 483,653 (4,822,360) 17,068,121
DISTRIBUTIONS TO SHAREHOLDERS.......... -- -- -- --
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... 109,890,243 7,346,215 44,865,321 (230,568)
------------ ---------- ----------- -----------
Net Increase in Net Assets........... 96,458,639 7,829,868 40,042,961 16,837,553
NET ASSETS--BEGINNING OF PERIOD........ -- -- -- --
------------ ---------- ----------- -----------
NET ASSETS--END OF PERIOD.............. $ 96,458,639 $7,829,868 $40,042,961 $16,837,553
------------ ---------- ----------- -----------
------------ ---------- ----------- -----------
</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. 42
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 1999*
-----------------------------------------------------
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)......... .05 (.01) (.02) (.16) --
Net Realized and Unrealized Gains
(Losses) on Securities............. (1.06) -- 1.47 7.18 (2.25)
-------- -------- ------- ----------- ----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations.... (1.01) (.01) 1.45 7.02 (2.25)
Distributions to Shareholders........ -- -- -- -- --
-------- -------- ------- ----------- ----------
Net Increase (Decrease) in Net Asset
Value.............................. (1.01) (.01) 1.45 7.02 (2.25)
-------- -------- ------- ----------- ----------
NET ASSET VALUE--END OF PERIOD......... $ 8.99 $ 9.99 $11.45 $17.02 $ 7.75
-------- -------- ------- ----------- ----------
-------- -------- ------- ----------- ----------
TOTAL INVESTMENT RETURN................ (10.10)% (0.10)% 14.50% 70.20% (22.50)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses**..................... 1.62% 1.58% 1.44% 1.39% 1.62%
Net Expenses**....................... 1.62% 1.57% 1.43% 1.39% 1.61%
Net Investment Income (Loss)**....... 0.69% (0.07)% (0.21)% (1.23)% (0.02)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.............. 6,070% 7,269% 4,465% 4,598% 5,704%
Net Assets, End of Period (000's
omitted)........................... $17,442 $22,165 $14,016 $24,400 $2,179
</TABLE>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING 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
See Notes to Financial Statements. 43
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
------------------------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 1999*
------------------------------------------------------------
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 Loss.................. -- (.08) (.10) (.04) (.03)
Net Realized and Unrealized Gains
(Losses) on Securities............. (.29) 1.29 3.64 3.07 (1.98)
--------- -------- -------- ------------ --------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations.... (.29) 1.21 3.54 3.03 (2.01)
Distributions to Shareholders........ -- -- -- -- --
--------- -------- -------- ------------ --------------
Net Increase (Decrease) in Net Asset
Value.............................. (.29) 1.21 3.54 3.03 (2.01)
--------- -------- -------- ------------ --------------
NET ASSET VALUE--END OF PERIOD......... $9.71 $11.21 $13.54 $13.03 $7.99
--------- -------- -------- ------------ --------------
--------- -------- -------- ------------ --------------
TOTAL INVESTMENT RETURN................ (2.90)% 12.10% 35.40% 30.30% (20.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses**..................... 1.55% 1.59% 1.42% 1.56% 1.58%
Net Expenses**....................... 1.54% 1.59% 1.42% 1.55% 1.58%
Net Investment Income (Loss)**....... (0.03)% (0.76)% (0.81)% (0.34)% (0.36)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.............. 1,255% 5,581% 3,243% 2,788% 7,583%
Net Assets, End of Period (000's
omitted)........................... $1,280 $4,796 $45,219 $12,300 $3,014
</TABLE>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: JULY 6, 1998--CONSUMER PRODUCTS
FUND, APRIL 1, 1998--LEISURE FUND, RETAILING FUND, AND
TELECOMMUNICATIONS FUND, APRIL 2, 1998--TRANSPORTATION FUND.
** ANNUALIZED
See Notes to Financial Statements. 44
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
--------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 1999*
--------------------------------------------
ENERGY BIO-
SERVICES BANKING TECHNOLOGY 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)......... (.07) .01 (.16) (.15)
Net Realized and Unrealized Gains
(Losses) on Securities............. (3.91) (1.24) 2.97 4.17
-------- -------- ---------- -----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations.... (3.98) (1.23) 2.81 4.02
Distributions to Shareholders........ -- -- -- --
-------- -------- ---------- -----------
Net Increase (Decrease) in Net Asset
Value.............................. (3.98) (1.23) 2.81 4.02
-------- -------- ---------- -----------
NET ASSET VALUE--END OF PERIOD......... $ 6.02 $ 8.77 $12.81 $14.02
-------- -------- ---------- -----------
-------- -------- ---------- -----------
TOTAL INVESTMENT RETURN................ (39.80)% (12.30)% 28.10% 40.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses**..................... 1.58% 1.58% 1.56% 1.57%
Net Expenses**....................... 1.57% 1.57% 1.55% 1.56%
Net Investment Income (Loss)**....... (1.14)% 0.13% (1.52)% (1.23)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.............. 3,170% 11,211% 2,670% 3,011%
Net Assets, End of Period (000's
omitted)........................... $74,135 $7,827 $38,205 $12,814
</TABLE>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--ENERGY SERVICES
FUND, BANKING FUND, BIOTECHNOLOGY FUND, AND ELECTRONICS FUND.
** ANNUALIZED
See Notes to Financial Statements. 45
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-------------------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 1999*
-------------------------------------------------------
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)......... (.14) (.05) (.18) (.20) .13
Net Realized and Unrealized Gains
(Losses)
on Securities...................... (.92) (.47) 1.62 6.26 (2.97)
--------- --------- ------ ----------- -----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations.... (1.06) (.52) 1.44 6.06 (2.84)
Distributions to Shareholders........ -- -- -- -- --
--------- --------- ------ ----------- -----------
Net Increase (Decrease) in Net Asset
Value.............................. (1.06) (.52) 1.44 6.06 (2.84)
--------- --------- ------ ----------- -----------
NET ASSET VALUE--END OF PERIOD......... $ 9.01 $ 9.95 $11.37 $16.90 $ 7.72
--------- --------- ------ ----------- -----------
--------- --------- ------ ----------- -----------
TOTAL INVESTMENT RETURN................ (10.53)% (4.97)% 14.50% 55.90% (26.89)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses**..................... 1.99% 2.13% 2.24% 2.18% 1.96%
Net Expenses**....................... 1.98% 2.12% 2.23% 2.17% 1.95%
Net Investment Income (Loss)**....... (1.75)% (0.60)% (1.96)% (1.78)% 1.25%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.............. 6,070% 7,269% 4,465% 4,598% 5,704%
Net Assets, End of Period (000's
omitted)........................... $609 $21,387 $24 $2,269 $688
</TABLE>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING 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 29,
1998--TECHNOLOGY FUND, APRIL 14, 1998--BASIC MATERIALS FUND.
** ANNUALIZED
See Notes to Financial Statements.
46
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 1999*
-----------------------------------------------------------------
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 Loss.................. (.08) (.12) (.15) (.03) (.10)
Net Realized and Unrealized Gains
(Losses) on Securities............. 1.05 1.93 3.64 2.94 (1.21)
---------- --------- --------- ------------- ---------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations.... .97 1.81 3.49 2.91 (1.31)
Distributions to Shareholders........ -- -- -- -- --
---------- --------- --------- ------------- ---------------
Net Increase (Decrease) in Net Asset
Value.............................. .97 1.81 3.49 2.91 (1.31)
---------- --------- --------- ------------- ---------------
NET ASSET VALUE--END OF PERIOD......... $9.70 $11.16 $13.50 $12.91 $ 7.95
---------- --------- --------- ------------- ---------------
---------- --------- --------- ------------- ---------------
TOTAL INVESTMENT RETURN................ 11.11% 19.36% 34.87% 29.10% (14.15)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses**..................... 2.05% 2.23% 1.95% 2.35% 2.08%
Net Expenses**....................... 2.04% 2.22% 1.94% 2.34% 2.07%
Net Investment Income (Loss)**....... (1.38)% (1.95)% (1.37)% (0.27)% (1.38)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.............. 1,255% 5,581% 3,243% 2,788% 7,583%
Net Assets, End of Period (000's
omitted)........................... $20,952 $8 $337 $1,929 $4
</TABLE>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING 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 9, 1998--TRANSPORTATION FUND.
** ANNUALIZED
See Notes to Financial Statements.
47
<PAGE>
RYDEX SERIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
------------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 1999*
------------------------------------------------
ENERGY BIO-
SERVICES BANKING TECHNOLOGY 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)......... (.09) .03 .18 (.23)
Net Realized and Unrealized Gains
(Losses) on Securities............. (3.76) (1.29) 2.48 4.21
--------- --------- ----------- ------------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations.... (3.85) (1.26) 2.66 3.98
Distributions to Shareholders........ -- -- -- --
--------- --------- ----------- ------------
Net Increase (Decrease) in Net Asset
Value.............................. (3.85) (1.26) 2.66 3.98
--------- --------- ----------- ------------
NET ASSET VALUE--END OF PERIOD......... $ 6.01 $ 8.74 $12.66 $13.96
--------- --------- ----------- ------------
--------- --------- ----------- ------------
TOTAL INVESTMENT RETURN................ (39.05)% (12.60)% 26.60% 39.88%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses**..................... 2.05% 2.08% 2.16% 2.05%
Net Expenses**....................... 2.04% 2.08% 2.16% 2.04%
Net Investment Income (Loss)**....... (1.66)% 0.28% 1.79% (1.86)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.............. 3,170% 11,211% 2,670% 3,011%
Net Assets, End of Period (000's
omitted)........................... $22,323 $2 $1,838 $4,024
</TABLE>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 2, 1998--ENERGY SERVICES
FUND, APRIL 1, 1998--BANKING FUND, BIOTECHNOLOGY FUND, APRIL 2,
1998--ELECTRONICS FUND.
** ANNUALIZED
See Notes to Financial Statements.
48
<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 offers two separate classes of shares,
Investor Class Shares and Advisor Class Shares. Sales of shares of each Class
are made without a sales charge at the net asset value per share. Currently, the
Trust consists of twenty-two separate series: seven benchmark funds; one money
market fund, and fourteen sector funds. This report covers the fourteen sector
funds (the "Sector Funds"), while the Benchmark Funds and Money Market Fund are
contained in a separate report. 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 last quoted sales price 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 recorded on the day the trade is executed for the
purpose of preparing semi-annual and annual financial statements. 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, and subsequently adjusted to reflect actual
holdings on the record date. 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
49
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
each Class. Certain costs are charged directly to specific classes, for example,
distribution fees relating to the Advisor Classes.
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 these estimates.
2. REPURCHASE AGREEMENTS
The Trust, which includes twenty-two separate series, 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 March 31, 1999 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>
U. S. Treasury Notes................... 4.63%-8.50% $101,629,000 $104,505,348
U. S. Treasury Bonds................... 6.75%-11.75% $ 82,747,000 $105,072,834
U. S. Treasury Bills................... 4.35%-4.72% $110,341,000 $107,862,325
</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 hundredths of
one percent (0.85%) of the net assets of each of the Sector Funds. Certain
officers of the Trust are also officers of PADCO Advisors, Inc.
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 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 Rule 12b-1 of the 1940 Act. The
Distributor will pay the Service Provider out of its fees. The Distributor
50
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. Certain officers of the Trust are
also officers of PADCO Financial Services, Inc.
The Trust paid PADCO Advisors Inc. $236,650 in accounting fees for the Sector
Funds for the period ended March 31, 1999.
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 March 31, 1999 purchases and sales of investment
securities, excluding short-term and temporary cash investments, were:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
------------ -------------- -------------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Purchases.............................. $369,924,978 $1,451,956,694 $1,007,949,493 $1,697,399,933 $302,019,631
Sales.................................. $350,648,836 $1,416,925,742 $ 995,674,849 $1,683,204,429 $297,342,211
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
------------ ------------ -------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Purchases.............................. $155,130,405 $266,195,397 $1,005,676,959 $414,240,040 $326,437,563
Sales.................................. $134,434,759 $262,743,976 $ 967,423,694 $402,598,498 $321,572,622
</TABLE>
<TABLE>
<CAPTION>
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Purchases.............................. $751,566,425 $932,159,376 $738,277,938 $1,002,122,460
Sales.................................. $643,920,343 $924,944,109 $694,267,191 $1,003,174,172
</TABLE>
51
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. NET UNREALIZED APPRECIATION (DEPRECIATION) OF SECURITIES
At March 31, 1999 unrealized appreciation (depreciation) and cost of investment
securities for Federal income tax purposes was:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation.......... $ 244,178 $ -- $ -- $ -- $ --
Gross Unrealized (Depreciation)........ (17,981) (3,452,898) (3,650,662) (1,558,593) (1,478,684)
----------- ------------ ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation)....................... $ 226,197 $ (3,452,898) $(3,650,662) $(1,558,593) $(1,478,684)
----------- ------------ ----------- ----------- -----------
----------- ------------ ----------- ----------- -----------
Cost of Investments for Federal
Income Tax Purposes.................. $17,853,522 $ 47,140,012 $17,823,958 $29,345,396 $ 4,376,092
----------- ------------ ----------- ----------- -----------
----------- ------------ ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation.......... $ -- $ -- $ -- $ -- $ --
Gross Unrealized (Depreciation)........ (576,721) (472,776) (1,395,263) (621,608) (2,310,329)
----------- ------------ ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation)....................... $ (576,721) $ (472,776) $(1,395,263) $ (621,608) $(2,310,329)
----------- ------------ ----------- ----------- -----------
----------- ------------ ----------- ----------- -----------
Cost of Investments for Federal
Income Tax Purposes.................. $22,865,312 $ 5,281,529 $46,947,947 $14,741,660 $ 5,368,643
----------- ------------ ----------- ----------- -----------
----------- ------------ ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
ENERGY
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation.......... $ -- $ -- $ -- $ --
Gross Unrealized (Depreciation)........ (11,042,812) (2,559,502) (6,200,675) (1,315,014)
------------ ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation)....................... $(11,042,812) $(2,559,502) $(6,200,675) $(1,315,014)
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
Cost of Investments for Federal
Income Tax Purposes.................. $107,666,859 $10,339,500 $46,342,081 $18,212,949
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
</TABLE>
52
<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 March 31, 1999 were:
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....................... 46,387,425 175,105,868 111,431,268 152,417,675 42,902,101 14,367,530
------------ ------------ ------------ ------------ ------------ -----------
Total Purchased........................ 46,387,425 175,105,868 111,431,268 152,417,675 42,902,101 14,367,530
Shares Redeemed........................ (44,448,217) (172,888,113) (110,206,981) (150,984,147) (42,620,819) (14,235,593)
------------ ------------ ------------ ------------ ------------ -----------
Net Shares Purchased................... 1,939,208 2,217,755 1,224,287 1,433,528 281,282 131,937
------------ ------------ ------------ ------------ ------------ -----------
------------ ------------ ------------ ------------ ------------ -----------
<CAPTION>
LEISURE
FUND
-----------
<S> <C>
Shares Purchased....................... 31,368,517
-----------
Total Purchased........................ 31,368,517
Shares Redeemed........................ (30,940,600)
-----------
Net Shares Purchased................... 427,917
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY BIO-
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING TECHNOLOGY
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased....................... 106,899,905 39,367,649 51,900,725 142,946,134 105,870,225 64,205,421
------------ ------------ ------------ ------------ ------------ -----------
Total Purchased........................ 106,899,905 39,367,649 51,900,725 142,946,134 105,870,225 64,205,421
Shares Redeemed........................ (103,560,376) (38,423,584) (51,523,631) (130,625,051) (104,977,546) (61,223,430)
------------ ------------ ------------ ------------ ------------ -----------
Net Shares Purchased................... 3,339,529 944,065 377,094 12,321,083 892,679 2,981,991
------------ ------------ ------------ ------------ ------------ -----------
------------ ------------ ------------ ------------ ------------ -----------
<CAPTION>
ELECTRONICS
FUND
-----------
<S> <C>
Shares Purchased....................... 99,841,803
-----------
Total Purchased........................ 99,841,803
Shares Redeemed........................ (98,927,690)
-----------
Net Shares Purchased................... 914,113
-----------
-----------
</TABLE>
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....................... 4,846,931 15,301,901 13,765,297 17,949,043 2,376,986 4,811,089
------------ ------------ ------------ ------------ ------------ -----------
Total Purchased........................ 4,846,931 15,301,901 13,765,297 17,949,043 2,376,986 4,811,089
Shares Redeemed........................ (4,779,294) (13,151,818) (13,763,146) (17,814,775) (2,287,875) (2,652,185)
------------ ------------ ------------ ------------ ------------ -----------
Net Shares Purchased................... 67,637 2,150,083 2,151 134,268 89,111 2,158,904
------------ ------------ ------------ ------------ ------------ -----------
------------ ------------ ------------ ------------ ------------ -----------
<CAPTION>
LEISURE
FUND
-----------
<S> <C>
Shares Purchased....................... 74,059
-----------
Total Purchased........................ 74,059
Shares Redeemed........................ (73,308)
-----------
Net Shares Purchased................... 751
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY BIO-
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING TECHNOLOGY
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased....................... 6,183,393 9,035,854 329,926 19,842,213 9,665,490 26,571,862
------------ ------------ ------------ ------------ ------------ -----------
Total Purchased........................ 6,183,393 9,035,854 329,926 19,842,213 9,665,490 26,571,862
Shares Redeemed........................ (6,158,427) (8,886,467) (329,370) (16,126,807) (9,665,211) (26,426,628)
------------ ------------ ------------ ------------ ------------ -----------
Net Shares Purchased................... 24,966 149,387 556 3,715,406 279 145,234
------------ ------------ ------------ ------------ ------------ -----------
------------ ------------ ------------ ------------ ------------ -----------
<CAPTION>
ELECTRONICS
FUND
-----------
<S> <C>
Shares Purchased....................... 29,570,978
-----------
Total Purchased........................ 29,570,978
Shares Redeemed........................ (29,282,718)
-----------
Net Shares Purchased................... 288,260
-----------
-----------
</TABLE>
53
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Transactions in dollars for the period ended March 31, 1999 were:
INVESTOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased....................... $ 405,972,500 $ 1,663,306,900 $ 1,193,748,091 $ 1,975,925,370 $ 357,734,614
--------------- --------------- --------------- --------------- -------------
Total Purchased........................ 405,972,500 1,663,306,900 1,193,748,091 1,975,925,370 357,734,614
Shares Redeemed........................ (387,651,774) (1,646,656,560) (1,179,863,050) (1,968,545,957) (355,208,043)
--------------- --------------- --------------- --------------- -------------
Net Shares Purchased................... $ 18,320,726 $ 16,650,340 $ 13,885,041 $ 7,379,413 $ 2,526,571
--------------- --------------- --------------- --------------- -------------
--------------- --------------- --------------- --------------- -------------
<CAPTION>
CONSUMER
PRODUCTS LEISURE
FUND FUND
------------- ---------------
<S> <C> <C>
Shares Purchased....................... $ 130,779,402 $ 316,035,670
------------- ---------------
Total Purchased........................ 130,779,402 316,035,670
Shares Redeemed........................ (129,379,038) (312,432,852)
------------- ---------------
Net Shares Purchased................... $ 1,400,364 $ 3,602,818
------------- ---------------
------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased....................... $ 1,216,853,482 $ 434,963,177 $ 429,557,052 $ 932,647,460 $ 968,633,702
--------------- --------------- --------------- --------------- -------------
Total Purchased........................ 1,216,853,482 434,963,177 429,557,052 932,647,460 968,633,702
Shares Redeemed........................ (1,175,145,535) (424,898,368) (424,745,172) (847,116,721) (961,587,382)
--------------- --------------- --------------- --------------- -------------
Net Shares Purchased................... $ 41,707,947 $ 10,064,809 $ 4,811,880 $ 85,530,739 $ 7,046,320
--------------- --------------- --------------- --------------- -------------
--------------- --------------- --------------- --------------- -------------
<CAPTION>
BIO-
TECHNOLOGY ELECTRONICS
FUND FUND
------------- ---------------
<S> <C> <C>
Shares Purchased....................... $ 650,802,231 $ 1,049,075,039
------------- ---------------
Total Purchased........................ 650,802,231 1,049,075,039
Shares Redeemed........................ (611,349,719) (1,047,424,530)
------------- ---------------
Net Shares Purchased................... $ 39,452,512 $ 1,650,509
------------- ---------------
------------- ---------------
</TABLE>
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....................... $ 42,291,652 $ 139,338,555 $ 143,259,326 $ 239,709,281 $ 24,197,174 $ 43,203,938
-------------- -------------- -------------- -------------- ------------ ------------
Total Purchased........................ 42,291,652 139,338,555 143,259,326 239,709,281 24,197,174 43,203,938
Shares Redeemed........................ (40,978,746) (120,050,805) (144,416,300) (232,976,324) (22,004,355) (23,385,943)
-------------- -------------- -------------- -------------- ------------ ------------
Net Shares Purchased (Redeemed)........ $ 1,312,906 $ 19,287,750 $ (1,156,974) $ 6,732,957 $ 2,192,819 $ 19,817,995
-------------- -------------- -------------- -------------- ------------ ------------
-------------- -------------- -------------- -------------- ------------ ------------
<CAPTION>
LEISURE
FUND
--------------
<S> <C>
Shares Purchased....................... $ 759,767
--------------
Total Purchased........................ 759,767
Shares Redeemed........................ (773,917)
--------------
Net Shares Purchased (Redeemed)........ $ (14,150)
--------------
--------------
</TABLE>
<TABLE>
<CAPTION>
TELE- ENERGY BIO-
RETAILING COMMUNICATIONS TRANSPORTATION SERVICES BANKING TECHNOLOGY
FUND FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares Purchased....................... $ 65,114,723 $ 104,546,686 $ 2,824,467 $ 116,337,472 $ 87,183,915 $275,824,051
-------------- -------------- -------------- -------------- ------------ ------------
Total Purchased........................ 65,114,723 104,546,686 2,824,467 116,337,472 87,183,915 275,824,051
Shares Redeemed........................ (67,316,645) (102,614,106) (2,692,114) (91,977,968) (86,884,020) (270,411,242)
-------------- -------------- -------------- -------------- ------------ ------------
Net Shares Purchased (Redeemed)........ $ (2,201,922) $ 1,932,580 $ 132,353 $ 24,359,504 $ 299,895 $ 5,412,809
-------------- -------------- -------------- -------------- ------------ ------------
-------------- -------------- -------------- -------------- ------------ ------------
<CAPTION>
ELECTRONICS
FUND
--------------
<S> <C>
Shares Purchased....................... $ 337,795,310
--------------
Total Purchased........................ 337,795,310
Shares Redeemed........................ (339,676,387)
--------------
Net Shares Purchased (Redeemed)........ $ (1,881,077)
--------------
--------------
</TABLE>
54
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
8. NET ASSETS
Certain adjustments have been made to the components of net assets to reflect
temporary and permanent differences in the recognition and timing of net
investment income, realized capital gains (losses), and distributions.
At March 31, 1999, net assets consisted of:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital........................ $20,070,316 $46,590,975 $17,649,678 $28,227,774 $ 4,747,189
Undistributed Net Investment Income.... -- -- -- -- --
Accumulated Net Realized (Loss) on
Investments.......................... (3,152,755) (6,079,782) (5,450,743) (9,608,552) (1,963,215)
Net Unrealized Appreciation on
Investments.......................... 1,133,566 3,040,671 1,841,723 8,049,959 83,202
----------- ----------- ----------- ----------- -----------
Net Assets............................. $18,051,127 $43,551,864 $14,040,658 $26,669,181 $ 2,867,176
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELE-
PRODUCTS LEISURE RETAILING COMMUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
----------- ----------- ----------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital........................ $22,025,857 $ 5,203,062 $46,423,337 $ 14,706,034 $ 5,329,233
Undistributed Net Investment Income.... -- -- -- -- --
Accumulated Net Realized (Loss) on
Investments.......................... (729,743) (1,387,797) (9,886,112) (3,281,804) (2,573,378)
Net Unrealized Appreciation on
Investments.......................... 936,219 988,774 9,019,195 2,804,511 263,049
----------- ----------- ----------- --------------- -------------
Net Assets............................. $22,232,333 $ 4,804,039 $45,556,420 $ 14,228,741 $ 3,018,904
----------- ----------- ----------- --------------- -------------
----------- ----------- ----------- --------------- -------------
</TABLE>
<TABLE>
<CAPTION>
ENERGY BIO-
SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Paid-In-Capital........................ $109,680,674 $10,299,518 $ 46,114,241 $18,152,567
Undistributed Net Investment Income.... -- 18,923 -- --
Accumulated Net Realized (Loss) on
Investments.......................... (22,977,833) (2,791,308) (12,288,231) (6,969,521)
Net Unrealized Appreciation on
Investments.......................... 9,755,798 302,735 6,216,951 5,654,507
------------ ----------- ------------ -----------
Net Assets............................. $ 96,458,639 $ 7,829,868 $ 40,042,961 $16,837,553
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
</TABLE>
55
<PAGE>
RYDEX SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. LOSS CARRYFORWARD--FEDERAL INCOME TAX
At March 31, 1999, for Federal income tax purposes, the following funds have
capital loss carryovers which may be applied against future net taxable realized
gains of each succeeding year until the earlier of its utilization or
expiration.
<TABLE>
<CAPTION>
BASIC ENERGY
MATERIALS SERVICES
EXPIRES MARCH 31 FUND FUND
- --------------------------------------- ------- ---------
<S> <C> <C>
2007................................... 401,329 2,179,223
</TABLE>
56
<PAGE>
RYDEX SERIES TRUST
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Shareholders and Board of Trustees,
Rydex Series Trust:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Energy, Financial Services, Health Care,
Technology, Basic Materials, Consumer Products, Leisure, Retailing,
Telecommunications, Transportation, Energy Services, Banking, Biotechnology, and
Electronics Funds (comprising fourteen of the twenty-two Funds) of the Rydex
Series Trust (the "Trust") as of March 31, 1999, and the related statements of
operations and changes in net assets and the financial highlights for each of
the periods presented. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of March 31, 1999, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Energy, Financial Services, Health Care, Technology, Basic Materials, Consumer
Products, Leisure, Retailing, Telecommunications, Transportation, Energy
Services, Banking, Biotechnology, and Electronics Funds of the Rydex Series
Trust, as of March 31, 1999, the results of their operations, the changes in
their net assets, and their financial highlights for the periods presented in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Princeton, New Jersey
May 21, 1999
<PAGE>
A FAMILY OF MUTUAL FUNDS
DESIGNED EXCLUSIVELY FOR
PROFESSIONAL MONEY MANAGERS
ENERGY FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
TECHNOLOGY FUND
BASIC MATERIALS FUND
CONSUMER PRODUCTS FUND
LEISURE FUND
RETAILING FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
ENERGY SERVICES FUND
BANKING FUND
BIOTECHNOLOGY FUND
ELECTRONICS FUND
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
RYDEX SERIES TRUST
6116 Executive Blvd., Suite 400
Rockville, MD 20852
(301) 468-8520 (800) 820-0888
www.rydexfunds.com
ADVISOR CLASS SHARES ARE DISTRIBUTED BY
PADCO FINANCIAL SERVICES, INC.
[LOGO]
RYDEX SERIES TRUST
SECTOR FUNDS
ANNUAL REPORT
MARCH 31, 1999
ENERGY FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
TECHNOLOGY FUND
BASIC MATERIALS FUND
CONSUMER PRODUCTS FUND
LEISURE FUND
RETAILING FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
ENERGY SERVICES FUND
BANKING FUND
BIOTECHNOLOGY FUND
ELECTRONICS FUND
