<PAGE>
[LOGO]
RYDEX SERIES FUNDS
SECTOR FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 2000
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
PRECIOUS METALS FUND
INTERNET FUND
UTILITIES FUND
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
RYDEX SERIES FUNDS
[LOGO] SECTOR FUNDS
SEMI-ANNUAL REPORT
September 30, 2000
9601 Blackwell Road, Suite 500
Rockville, MD 20850
(800) 820-0888
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The three major U.S. stock indexes posted negative returns for the six-month
period ending September 30, 2000. A number of old economy sectors did well, but
the broad markets were dragged down by the poor performance of the new economy
tech stocks. What were the causes of the recent slide? The combination of six
interest-rate hikes over 16 months and weakening earnings growth put pressure on
stock prices. Additionally, a surge in energy prices raised the cost of doing
business and cut into consumers' disposable incomes. Crude oil prices jumped to
a ten-year high in September contributing to inflationary pressure in Europe,
weakening the EURO, and lowering foreign demand for U.S. products.
FINANCIAL MARKET REVIEW
After reaching all time highs in the first quarter, tech stocks fizzled in
the second and third. In April, the anti-trust ruling against tech bellwether
Microsoft set the stage for a potential break-up of the company and a slide in
tech stocks. So far this year, tech leaders like semiconductor companies Intel
and Texas Instruments have been disabled by doubts about computer chip demand.
The dismal performance of telecommunications stocks such as Lucent Technologies
can be attributed to missing profit forecasts. This sector was also hurt because
of pricing concerns in the long distance and local phone markets and the failed
merger between WorldCom and Sprint.
While tech stocks struggled during the period, the traditionally defensive
sectors performed well. Utility stocks led the group, as demand for electric
power continues to grow with the expanding population. A spike in prices and a
sharp increase in use benefited natural gas companies. With oil prices near
their Persian Gulf War records and natural gas prices at all time highs, energy
stocks continued their upward surge. Exxon Mobil saw profits more than double,
while Texaco posted a six-fold increase. The rise in oil and natural gas prices
stimulated capital spending on exploration and production, which ignited a
recovery in oilfield drilling and services companies such as Baker Hughes and
Global Marine.
<PAGE>
Health care stocks outperformed the broad market for the reporting period.
Marketing efforts by pharmaceutical firms and some real advances in medicine are
accelerating earnings growth in that industry. Biotech industry fundamentals
continue to improve and recent advances in genomic research are expected to
expedite the development of new drugs to combat disease.
Financial shares performed well during the period as earnings momentum for
the sector rose, after remaining stagnant throughout most of 2000. A wave of
giant mergers swept the banks and brokerages. Among the links were Chase
Manhattan and J.P. Morgan, UBS buying Paine Webber and Credit Suisse Group
paying up for Donaldson, Lufkin and Jenrette. This activity boosted brokerage
stocks like Lehman Brothers and Bear Stearns, as speculation rose as to who
would be next. The consolidations intend to produce financial supermarkets that
provide all products and services to all customers.
The U.S. economy remains in excellent health, with growth expected to once
again top 5% and unemployment remaining at a 30-year low. Reports indicate that
the economy is slowing and may discourage the Federal Reserve from raising rates
in the near term. The productivity of the new economy appears to have offset the
negative effects of higher energy prices.
Looking forward, investors will watch as the Fed attempts to engineer a soft
landing for the U.S. economy. A new Presidential administration is about to take
office, raising the level of political uncertainty. As investors watch these
events unfold, they will be sensitive to earnings reports as important signals
that higher interest rates and a mildly decelerating economy are not diminishing
corporate profitability.
In closing, I would like to thank you for using the Rydex Funds. As always,
we welcome your questions or comments. Feel free to contact us over the Internet
via our web site at www.rydexfunds.com or call us at 800-820-0888.
Sincerely,
/s/ Albert P. Viragh, Jr.
Albert P. (Skip) Viragh, Jr.
Chairman of the Board
2
<PAGE>
RYDEX SERIES FUNDS
ENERGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 98.9%
Exxon Mobil Corp.................. 87,114 $ 7,764,035
BP Amoco Plc., Sponsored ADR...... 94,548 5,011,044
Enron Corp........................ 56,367 4,939,158
Royal Dutch Petroleum Co., NY
Shares.......................... 46,437 2,783,318
Chevron Corp...................... 23,549 2,007,552
Schlumberger Ltd.................. 24,343 2,003,733
Halliburton Co.................... 37,933 1,856,346
Anadarko Petroleum Corp........... 20,770 1,380,374
Phillips Petroleum Co............. 21,719 1,362,867
Coastal Corp...................... 18,273 1,354,486
Texaco, Inc....................... 24,796 1,301,790
EL Paso Energy Corp............... 19,786 1,219,312
Transocean Sedco Forex, Inc....... 18,006 1,055,602
Baker Hughes, Inc................. 28,251 1,048,818
USX-Marathon Group................ 26,674 756,875
Unocal Corp....................... 20,778 736,320
Occidental Petroleum Corp......... 31,538 687,923
Burlington Resources, Inc......... 18,419 678,049
Nabors Industries, Inc.*.......... 12,460 652,904
Apache Corp....................... 9,729 575,227
Noble Drilling Corp.*............. 11,429 574,307
Kerr-McGee Corp................... 8,054 533,578
Amerada Hess Corp................. 7,751 518,833
Diamond Offshore
Drilling, Inc................... 11,595 475,395
R & B Falcon Corp.*............... 16,603 462,809
Global Marine, Inc.*.............. 14,979 462,477
ENSCO International, Inc.......... 11,797 451,235
BJ Services Co.*.................. 7,345 448,963
Santa Fe International Corp....... 9,851 443,911
Conoco, Inc., Class A............. 16,043 419,123
Weatherford
International, Inc.*............ 9,282 399,127
EOG Resources, Inc................ 10,041 390,344
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Tosco Corp........................ 12,364 $ 385,602
Smith International, Inc.*........ 4,312 351,698
Cooper Cameron Corp.*............. 4,493 331,078
Murphy Oil Corp................... 3,851 249,593
Rowan Companies, Inc*............. 8,030 232,870
Tidewater, Inc.................... 4,762 216,671
Sunoco, Inc....................... 7,571 203,944
Grant Prideco, Inc.*.............. 9,273 203,426
Ashland, Inc...................... 6,038 203,405
Ultramar Diamond Shamrock Corp.... 7,422 188,333
Noble Affiliates, Inc............. 4,766 176,938
Newfield Exploration Co.*......... 3,622 169,102
Varco International, Inc*......... 7,797 162,275
-----------
Total Common Stocks
(Cost $42,965,020).......... 47,830,770
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.1%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations (Note 2):
6.40% due 10/02/00............ $138,747 138,747
6.48% due 10/02/00............ 252,778 252,778
6.50% due 10/02/00............ 138,747 138,747
-----------
Total Repurchase
Agreements
(Cost $530,272)........... 530,272
-----------
Total Investments 100%
(Cost $43,495,292)........ $48,361,042
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 3
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ------------
<S> <C> <C>
COMMON STOCKS 99.2%
American International
Group, Inc.................... 210,761 $ 20,167,191
Bank of America Corp............ 209,817 10,989,165
Citigroup, Inc.................. 182,089 9,844,187
American Express Co............. 160,679 9,761,249
Wells Fargo & Co................ 203,989 9,370,751
Fannie Mae...................... 127,542 9,119,253
Merrill Lynch & Co., Inc........ 131,690 8,691,540
Morgan Stanley Dean
Witter & Co................... 93,142 8,516,672
Goldman Sachs Group, Inc........ 69,869 7,960,700
Charles Schwab Corp............. 215,793 7,660,651
Chase Manhattan Corp............ 156,581 7,232,085
Bank One Corp................... 145,935 5,636,739
Bank of New York Co., Inc....... 93,375 5,234,836
Freddie Mac..................... 88,072 4,761,392
Marsh & McLennan Cos., Inc...... 34,130 4,530,757
FleetBoston Corp................ 114,096 4,449,744
First Union Corp................ 124,143 3,995,853
MBNA Corp....................... 101,511 3,908,173
Associates First Capital Corp.,
Class A....................... 92,215 3,504,170
Household
International, Inc............ 59,907 3,392,234
Morgan J.P. & Co. Inc........... 20,553 3,357,846
Allstate Corp................... 94,275 3,276,056
Fifth Third Bancorp............. 58,828 3,169,358
Mellon Financial Corp........... 62,190 2,884,061
AXA Financial, Inc.............. 54,727 2,787,657
Washington Mutual, Inc.......... 69,350 2,760,997
Firstar Corp.................... 122,721 2,745,882
State Street Corp............... 20,369 2,647,970
Northern Trust Corp............. 28,145 2,501,387
American General Corp........... 31,448 2,452,944
PNC Financial Services Group.... 36,767 2,389,855
Lehman Brothers
Holdings, Inc................. 15,300 2,260,575
U.S. Bancorp.................... 95,187 2,165,504
AFLAC, Inc...................... 33,607 2,152,948
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ------------
<S> <C> <C>
CIGNA Corp...................... 20,618 $ 2,152,519
Hartford Financial Services
Group, Inc.................... 27,208 1,984,483
SunTrust Banks, Inc............. 38,292 1,907,420
Chubb Corp...................... 22,151 1,752,698
National City Corp.............. 76,751 1,698,116
Wachovia Corp................... 25,632 1,453,014
KeyCorp......................... 55,180 1,396,744
Franklin Resources, Inc......... 30,834 1,369,955
BB&T Corp....................... 44,130 1,329,416
St Paul Cos..................... 26,848 1,323,942
Bear Stearns Cos., Inc.......... 20,440 1,287,720
AON Corp........................ 32,394 1,271,464
Lincoln National Corp........... 24,274 1,168,186
Comerica, Inc................... 19,804 1,157,296
Aetna, Inc...................... 17,843 1,036,009
E*trade Group, Inc.*............ 62,786 1,032,045
------------
Total Common Stocks
(Cost $180,461,679)....... 209,601,409
------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.8%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations (Note
2):
6.40% due 10/02/00.......... $419,949 419,949
6.48% due 10/02/00.......... 765,087 765,087
6.50% due 10/02/00.......... 419,949 419,949
------------
Total Repurchase
Agreements
(Cost $1,604,985)....... 1,604,985
------------
Total Investments 100%
(Cost $182,066,664)..... $211,206,394
============
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 4
<PAGE>
RYDEX SERIES FUNDS
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS 99.3%
Pfizer, Inc............................ 381,252 $17,132,513
Merck & Co., Inc....................... 156,016 11,613,441
Johnson & Johnson...................... 104,858 9,850,098
Bristol-Myers Squibb Co................ 132,188 7,551,239
Amgen, Inc.*........................... 101,799 7,108,433
Eli Lilly & Co......................... 87,324 7,084,159
Medtronic, Inc......................... 131,108 6,793,033
Pharmacia & Upjohn, Inc................ 106,325 6,399,436
Abbott Laboratories.................... 129,788 6,173,042
American Home Products Corp............ 94,224 5,329,545
Glaxo Welcome Plc., Sponsored ADR...... 84,575 5,111,502
Schering-Plough Corp................... 106,124 4,934,766
SmithKline Beecham Plc., Sponsored
ADR.................................. 57,991 3,979,632
Cardinal Health, Inc................... 35,580 3,137,711
Baxter International, Inc.............. 37,409 2,985,706
Immunex Corp.*......................... 64,506 2,806,011
Guidant Corp.*......................... 39,494 2,791,732
HCA-The Healthcare Co.................. 69,157 2,567,454
Medimmune, Inc.*....................... 26,891 2,077,330
United HealthCare Corp................. 20,930 2,066,837
Tenet Healthcare Corp.*................ 40,305 1,466,094
Allergan, Inc.......................... 16,699 1,410,022
Becton, Dickinson and Co............... 49,339 1,304,400
Forest Laboratories, Inc.*............. 10,888 1,248,717
ALZA Corp.*............................ 13,226 1,144,049
McKesson HBOC, Inc..................... 36,309 1,109,694
Biogen, Inc.*.......................... 18,107 1,104,527
Stryker Corp........................... 24,996 1,073,266
Boston Scientific Corp.*............... 52,540 863,626
Watson Pharmaceuticals, Inc.*.......... 12,443 807,240
Biomet, Inc............................ 22,924 802,340
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
WellPoint Health Networks, Inc.*....... 8,000 $ 768,005
Genzyme Corp. - General Division*...... 10,929 745,221
Health Management Associates, Inc.,
Class A*............................. 32,132 668,747
Gilead Sciences, Inc.*................. 5,745 630,155
St. Jude Medical, Inc.................. 10,803 550,953
Mylan Laboratories, Inc................ 16,667 448,967
Healthsouth Corp.*..................... 49,671 403,577
Mallinckrodt, Inc...................... 8,661 395,158
Hillenbrand Industries, Inc............ 8,082 361,669
ICN Pharmaceuticals, Inc............... 10,239 340,447
Oxford Health Plans, Inc.*............. 10,586 325,354
Sybron International Corp.*............ 13,472 323,328
Amerisource Health Corp., Class A*..... 6,599 310,153
Universal Health Services, Inc.,
Class B.............................. 3,579 306,452
Beckman Coulter, Inc................... 3,783 291,764
C. R. Bard, Inc........................ 6,504 274,794
Bausch & Lomb, Inc..................... 6,840 266,332
Foundation Health Systems, Inc.,
Class A*............................. 15,756 261,943
DENTSPLY International, Inc............ 6,688 233,662
Humana, Inc.*.......................... 21,616 232,372
Manor Care, Inc.*...................... 13,180 206,761
Bergen Brunswig Corp., Class A......... 17,331 202,556
Dura Pharmaceuticals, Inc.*............ 5,716 202,203
Lincare Holdings, Inc.*................ 6,866 196,968
PacifiCare Health Systems, Inc.,
Class A*............................. 5,615 195,472
Omnicare, Inc.......................... 11,874 191,468
Edwards LifeSciences
Corp.*............................... 7,486 163,288
Quorum Health Group, Inc.*............. 9,178 119,314
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 5
<PAGE>
RYDEX SERIES FUNDS
HEALTH CARE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
Steris Corp.*.......................... 8,698 $ 104,376
Perrigo Co.*........................... 9,455 64,707
Covance, Inc.*......................... 7,368 60,325
-----------
Total Common Stocks
(Cost $128,601,514).............. 139,674,086
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
FACE AMOUNT (NOTE 1)
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.7%
Repurchase Agreements Collateralized by
U.S. Treasury Obligations (Note 2):
6.40% due 10/02/00................... $251,964 $ 251,964
6.48% due 10/02/00................... 459,041 459,041
6.50% due 10/02/00................... 251,964 251,964
------------
Total Repurchase Agreements
(Cost $962,969).................. 962,969
------------
Total Investments 100%
(Cost $129,564,483).............. $140,637,055
============
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 6
<PAGE>
RYDEX SERIES FUNDS
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 96.6%
Cisco Systems, Inc.*......... 63,843 $ 3,527,326
Microsoft Corp.*............. 48,387 2,918,341
Intel Corp................... 61,656 2,562,577
International Business
Machines Corp.............. 21,140 2,378,250
Sun Microsystems, Inc.*...... 18,917 2,208,560
Oracle Corp.*................ 26,099 2,055,296
EMC Corp..................... 19,952 1,977,742
America Online, Inc.*........ 23,104 1,241,840
Lucent Technologies, Inc..... 38,831 1,186,772
Hewlett-Packard Co........... 11,926 1,156,822
Dell Computer Corp.*......... 30,474 938,980
Texas Instruments, Inc....... 19,564 923,176
Motorola, Inc................ 31,685 895,101
Veritas Software Corp.*...... 5,728 813,376
QUALCOMM, Inc.*.............. 10,637 757,886
Yahoo!, Inc.*................ 7,800 709,803
Applied Materials, Inc.*..... 11,578 686,720
Compaq Computer Corp......... 24,424 673,614
Automatic Data
Processing, Inc............ 9,011 602,611
Palm, Inc.*.................. 8,114 429,535
Analog Devices, Inc.*........ 5,083 419,665
Solectron Corp.*............. 8,566 395,107
Xilinx, Inc.*................ 4,607 394,474
Micron Technology, Inc....... 7,517 345,782
Verisign, Inc.*.............. 1,658 335,849
Maxim Integrated
Products, Inc.*............ 4,061 326,657
Agilent
Technologies, Inc.*........ 6,494 317,800
Linear Technology Corp....... 4,498 291,245
Tellabs, Inc.*............... 5,883 280,913
Paychex, Inc................. 5,334 280,035
Electronic Data Systems Corp.
........................... 6,692 277,718
Altera Corp.*................ 5,727 273,464
Adobe Systems, Inc........... 1,719 266,875
Comverse Technology, Inc.*.. 2,234 241,272
ADC
Telecommunications, Inc.*.. 8,785 236,234
First Data Corp.............. 5,923 231,367
Seagate Technology, Inc.*.... 3,264 225,216
Gateway, Inc.*............... 4,623 $ 216,125
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Computer Associates
International, Inc......... 8,454 212,935
Inktomi Corp.*............... 1,587 180,918
Computer Sciences Corp.*..... 2,404 178,497
LSI Logic Corp.*............. 4,410 128,992
Apple Computer, Inc.*........ 4,676 120,407
CMGI, Inc.*.................. 4,021 112,337
KLA-Tencor Corp.*............ 2,672 110,053
Advanced Micro Devices*...... 4,475 105,722
National Semiconductor
Co.*....................... 2,536 102,074
Atmel Corp.*................. 6,373 96,790
3Com Corp.*.................. 5,040 96,705
RealNetworks, Inc.*.......... 2,230 88,642
Teradyne, Inc.*.............. 2,488 87,080
At Home Corp., Series A*..... 5,271 74,453
BMC Software, Inc.*.......... 3,508 67,090
DoubleClick, Inc.*........... 1,760 56,320
Unisys Corp.*................ 4,507 50,704
Novell, Inc.*................ 4,733 47,034
Compuware Corp.*............. 5,179 43,374
-----------
Total Common Stocks
(Cost $19,557,545)..... 35,960,253
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 3.4%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00......... $330,136 330,136
6.48% due 10/02/00......... 601,461 601,461
6.50% due 10/02/00......... 330,136 330,136
-----------
Total Repurchase
Agreements
(Cost $1,261,733)...... 1,261,733
-----------
Total Investments 100%
(Cost $20,819,278)..... $37,221,986
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 7
<PAGE>
RYDEX SERIES FUNDS
BASIC MATERIALS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 100%
Alcoa, Inc..................... 15,223 $ 385,332
E. I. DuPont de Nemours & Co... 9,162 379,650
Dow Chemical Co................ 11,829 294,986
International Paper Co......... 8,452 242,467
Weyerhaeuser Co................ 4,076 164,568
Air Products &
Chemicals, Inc............... 3,728 134,208
PPG Industries, Inc............ 3,047 120,928
Alcan Aluminium, Ltd........... 3,828 110,773
Rohm & Haas Co................. 3,806 110,612
Fort James Corp................ 3,600 110,025
Barrick Gold Corp.............. 6,929 105,667
Praxair, Inc................... 2,758 103,080
Union Carbide Corp............. 2,357 88,977
Imperial Chemical Industries
Plc., Sponsored ADR.......... 3,184 73,829
B.F. Goodrich Co............... 1,878 73,594
Georgia-Pacific Corp........... 2,984 70,124
Sherwin-Williams Co............ 2,865 61,239
Phelps Dodge Corp.............. 1,377 57,490
Willamette Industries, Inc..... 1,938 54,264
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Placer Dome, Inc............... 5,732 $ 54,096
Inco, Ltd.*.................... 3,179 51,261
Newmont Mining Corp............ 2,937 49,929
Eastman Chemcial Co............ 1,342 49,570
Sigma-Aldrich.................. 1,491 49,203
Westvaco Corp.................. 1,760 46,970
Nucor Corp..................... 1,488 44,826
Corus Group Plc................ 5,445 42,199
Mead Corp...................... 1,799 42,052
Bowater, Inc................... 902 41,887
Cabot Corp..................... 1,173 37,169
Engelhard Corp................. 2,233 36,286
Temple-Inland, Inc............. 917 34,731
Great Lakes Chemical Corp...... 953 27,935
----------
Total Common Stocks
(Cost $3,234,744)........ 3,349,927
----------
Total Investments 100%
(Cost $3,234,744)........ $3,349,927
==========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 8
<PAGE>
RYDEX SERIES FUNDS
CONSUMER PRODUCTS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 99.4%
Proctor & Gamble Co............ 10,270 $ 688,088
Kimberly-Clark Corp............ 7,790 434,779
Colgate-Palmolive Co........... 8,337 393,506
Gillette Co.................... 11,164 344,688
Omnicom Group, Inc............. 4,152 302,836
Unilever N. V., NY Shares...... 5,205 251,141
Clorox Co...................... 5,513 218,108
Cintas Corp.................... 4,367 190,237
Interpublic Group of
Cos., Inc.................... 5,447 185,538
CDW Computer Centers, Inc.*.... 2,251 155,319
Gucci Group N.V., NY Regular
Shares....................... 1,522 153,532
Newell Rubbermaid, Inc......... 6,623 151,087
Nike, Inc., Class B............ 3,654 146,388
Avery Dennison Corp............ 2,928 135,786
Estee Lauder Cos., Class A..... 3,224 118,079
Illinois Tool Works, Inc....... 1,720 96,105
Arrow Electronics, Inc......... 2,498 85,088
Jones Apparel Group, Inc.*..... 3,187 84,455
Leggett & Platt, Inc........... 5,107 80,754
Black & Decker Corp............ 2,269 77,571
V. F. Corp..................... 3,066 75,692
Whirlpool Corp................. 1,927 74,919
Maytag Corp.................... 2,197 68,244
Miller (Herman), Inc........... 2,057 65,953
Shaw Industries, Inc........... 3,481 64,398
LIZ Claiborne, Inc............. 1,538 59,213
Tech Data Corp.*............... 1,355 57,926
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Catalina Marketing Corp.*...... 1,425 $ 53,616
International Flavors &
Fragrances, Inc.............. 2,735 49,914
Payless Shoesource, Inc.*...... 788 44,128
Clayton Homes, Inc............. 3,657 36,570
Dial Corp...................... 2,697 31,353
Ethan Allen Interiors, Inc..... 1,064 30,124
American Greetings............. 1,557 27,247
Tommy Hilfiger Corp.*.......... 2,483 23,899
----------
Total Common Stocks
(Cost $4,928,527)........ 5,056,281
----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.6%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00........... $ 7,531 7,531
6.48% due 10/02/00........... 13,720 13,720
6.50% due 10/02/00........... 7,531 7,531
----------
Total Repurchase Agreements
(Cost $28,782)........... 28,782
----------
Total Investments 100%
(Cost $4,957,309)........ $5,085,063
==========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 9
<PAGE>
RYDEX SERIES FUNDS
LEISURE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
COMMON STOCKS 95.4%
Viacom, Inc., Class B*............ 2,431 $ 142,212
Time Warner, Inc.................. 1,493 116,827
Walt Disney Co.................... 2,947 112,723
America Online, Inc.*............. 1,224 65,790
Anheuser-Busch Cos., Inc.......... 1,287 54,456
Clear Channel
Communications, Inc............. 902 50,963
Comcast Corp., Special Class A*.. 1,241 50,803
Seagram Co., Ltd.................. 698 40,091
Cox Communications, Inc.,
Class A*........................ 1,025 39,206
News Corp., Ltd., Sponsored ADR... 543 30,442
McDonald's Corp................... 949 28,648
Harley-Davidson, Inc.............. 539 25,805
Philip Morris Cos., Inc........... 812 23,903
Gannett Co., Inc.................. 426 22,578
McGraw-Hill Cos., Inc............. 346 21,993
Carnival Corp..................... 856 21,079
Tribune Co........................ 406 17,712
Marriott International, Inc.,
Class A......................... 425 15,486
Cendant Corp...................... 1,280 13,920
Starbucks Corp.*.................. 329 13,181
New York Times Co., Class A....... 300 11,794
USA Networks, Inc.*............... 528 11,583
Electronic Arts, Inc.*............ 230 11,356
MGM Grand, Inc.................... 281 10,731
Dun & Bradstreet Corp.*........... 287 9,884
At Home Corp., Series A*.......... 646 9,125
Metro-Goldwyn-Mayer, Inc.*........ 358 8,592
Mattel, Inc....................... 756 8,458
Royal Caribbean Cruises, Ltd...... 321 8,263
Park Place Entertainment Corp.*... 540 8,167
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- ----------
<S> <C> <C>
Tricon Global
Restaurants, Inc.*.............. 262 $ 8,024
Hilton Hotels Corp................ 654 7,562
Sabre Holdings Corp............... 229 6,627
Harrah's Entertainment, Inc....... 217 5,967
Darden Restaurants, Inc........... 220 4,579
International Game Technology*.... 128 4,304
Wendy's International, Inc........ 202 4,052
Adolph Coors, Class B............. 63 3,981
Mandalay Resort Group*............ 139 3,562
Brinker International, Inc.*...... 116 3,494
----------
Total Common Stocks
(Cost $857,781)............... 1,057,923
----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 4.6%
Repurchase Agreements
Collateralized by U.S. Treasury
Obligations (Note 2):
6.40% due 10/02/00.............. $13,370 13,370
6.48% due 10/02/00.............. 24,360 24,360
6.50% due 10/02/00.............. 13,370 13,370
----------
Total Repurchase
Agreements
(Cost $51,100).............. 51,100
----------
Total Investments 100%
(Cost $908,881)............. $1,109,023
==========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 10
<PAGE>
RYDEX SERIES FUNDS
RETAILING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS 99.5%
Wal-Mart Stores, Inc.......... 239,742 $11,537,583
Home Depot, Inc............... 184,662 9,798,627
McDonald's Corp............... 154,586 4,666,565
Walgreen Co................... 109,539 4,155,636
Kohl's Corp.*................. 47,780 2,756,309
Target Corp................... 104,860 2,687,037
CVS Corp...................... 56,695 2,625,687
Lowe's Cos., Inc.............. 55,665 2,497,967
Gap, Inc...................... 105,217 2,117,492
Best Buy Co., Inc.*........... 29,362 1,868,157
Costco Wholesale Corp......... 51,793 1,809,518
RadioShack Corp............... 27,076 1,749,786
Sears, Roebuck & Co........... 51,229 1,660,844
Amazon.com, Inc.*............. 40,915 1,572,670
Limited, Inc.................. 62,188 1,372,023
Starbucks Corp.*.............. 26,635 1,067,065
Bed Bath & Beyond, Inc.*...... 40,674 992,064
Staples, Inc.*................ 69,711 989,025
TJX Companies, Inc............ 43,105 969,862
May Department Stores Co...... 46,533 953,926
Federated Department
Stores, Inc.*............... 30,728 802,769
Dollar General Corp........... 47,512 795,826
Circuit City Stores - Circuit
City Group.................. 29,758 684,434
Tricon Global
Restaurants, Inc.*.......... 21,235 650,322
Dollar Tree Stores, Inc.*..... 14,887 603,854
Toys R US, Inc.*.............. 32,696 531,310
Family Dollar Stores.......... 24,878 478,901
J. C. Penney Co., Inc......... 37,663 444,894
Harcourt General, Inc......... 7,481 441,379
Autozone, Inc.*............... 19,334 438,640
Kmart Corp.*.................. 69,765 418,590
Tiffany & Co.................. 10,477 404,019
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
Darden Restaurants, Inc....... 17,930 $ 373,168
BJ's Wholesale Club, Inc.*.... 10,698 365,069
Office Depot, Inc.*........... 46,191 360,867
Wendy's
International, Inc.......... 16,279 326,597
Fastenal Co................... 5,462 314,748
Outback Steakhouse, Inc.*..... 11,325 307,191
Talbots, Inc.................. 4,454 295,077
Nordstorm, Inc................ 18,662 290,427
Brinker
International, Inc.*........ 9,454 284,802
Williams-Sonoma, Inc.*........ 8,065 280,259
Woolworth Corp................ 19,949 246,875
Neiman Marcus Group, Inc.,
Class A *................... 7,089 229,949
Consolidated Stores Corp.*.... 16,137 217,849
-----------
Total Common Stocks
(Cost $67,655,847)...... 68,435,659
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.5%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00......... $ 92,188 92,188
6.48% due 10/02/00......... 167,955 167,955
6.50% due 10/02/00......... 92,188 92,188
-----------
Total Repurchase
Agreements
(Cost $352,331)........ 352,331
-----------
Total Investments 100%
(Cost $68,008,178)..... $68,787,990
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 11
<PAGE>
RYDEX SERIES FUNDS
TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS 99.0%
Nortel Networks Corp.......... 37,010 $ 2,204,407
Nokia Corp., Class A,
Sponsored ADR............... 48,095 1,914,782
Vodafone Group Plc., Sponsored
ADR......................... 38,513 1,424,981
Lucent Technologies, Inc...... 38,362 1,172,439
Telefonaktiebolaget LM
Ericsson, Sponsored ADR..... 79,053 1,170,973
Alcatel S.A., Sponsored ADR... 16,372 1,029,390
QUALCOMM, Inc.*............... 13,582 967,718
MCI WorldCom, Inc.*........... 29,853 906,785
Motorola, Inc................. 23,874 674,441
Qwest Communications
International, Inc.*........ 14,014 673,548
Cable & Wireless Plc.,
Sponsored ADR............... 14,971 637,203
Ciena Corp.*.................. 5,122 629,046
Nextel Communications, Inc.,
Class A*.................... 13,267 620,232
Sprint PCS Group*............. 16,727 586,490
Corning, Inc.................. 1,800 534,600
Global Crossing, Ltd.*........ 14,959 463,729
VoiceStream Wireless Corp.*... 3,902 452,876
Tellabs, Inc.*................ 7,497 357,982
ADC
Telecommunications, Inc.*.. 12,451 334,815
British Telecommunications
Plc., Sponsored ADR......... 2,994 320,545
Alltel Corp................... 5,824 303,940
BCE, Inc...................... 11,731 274,212
BellSouth Corp................ 5,171 208,133
Scientific-Atlanta, Inc....... 2,926 186,167
McLeodUSA, Inc., Class A*..... 10,508 150,396
NTL, Inc.*.................... 2,641 122,311
Telephone and Data
Systems, Inc................ 986 109,150
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
NEXTLINK
Communications, Inc.,
Class A*.................... 3,004 $ 105,703
Broadwing, Inc................ 3,901 99,719
Teleglobe, Inc................ 4,668 98,028
PanAmSat Corp.*............... 2,751 87,860
CenturyTel, Inc............... 2,593 70,659
United States Cellular
Corp.*...................... 986 69,020
Advanced Fibre
Communication*.............. 1,451 54,957
ECI Telecom, Ltd.............. 1,683 51,542
Western Wireless Corp.*....... 1,295 46,134
Mitel Corp.*.................. 2,162 44,321
Andrew Corp.*................. 1,488 38,967
-----------
Total Common Stocks
(Cost $12,042,271)...... 19,198,201
-----------
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.0%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00.......... $50,388 50,388
6.48% due 10/02/00.......... 91,799 91,799
6.50% due 10/02/00.......... 50,388 50,388
-----------
Total Repurchase
Agreements
(Cost $192,575)......... 192,575
-----------
Total Investments 100%
(Cost $12,234,846)...... $19,390,776
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 12
<PAGE>
RYDEX SERIES FUNDS
TRANSPORTATION FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 98.5%
FedEx Corp.*...................... 29,223 $ 1,295,745
Southwest Airlines Co............. 50,457 1,223,582
Union Pacific Corp................ 18,901 734,776
Burlington Northern Santa Fe
Corp............................ 30,071 648,406
United Parcel Service, Inc.,
Class B......................... 11,124 627,116
Canadian National Railway Co...... 20,341 596,246
Delta Air Lines, Inc.............. 12,454 552,646
AMR Corp.......................... 15,220 497,504
TRW, Inc.......................... 10,660 433,063
Norfolk Southern Corp............. 29,216 427,284
Sabre Holdings Corp............... 13,124 379,776
CSX Corp.......................... 16,659 363,374
Magna International, Inc.,
Class A......................... 7,986 345,395
Genuine Parts Co.................. 17,983 342,801
Dana Corp......................... 15,490 333,035
PACCAR, Inc....................... 7,780 288,346
Goodyear Tire & Rubber Co......... 15,903 286,254
Expeditors International of
Washington, Inc................. 5,174 233,153
UAL Corp.......................... 5,080 213,360
Northwest Airlines Corp.*......... 8,608 211,434
US Airways Group, Inc.*........... 6,774 206,184
GATX Corp......................... 4,849 203,052
Navistar International Corp....... 6,293 188,397
Atlas Air, Inc.*.................. 3,505 148,086
Lear Corp.*....................... 6,724 138,262
Newport News Shipbuilding, Inc.... 3,150 136,631
Skywest, Inc...................... 2,504 128,330
CNF Transportation, Inc........... 4,934 109,782
Brilliance China.................. 3,095 94,398
Borg-Warner Automotive, Inc....... 2,694 89,239
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
EGL, Inc.*........................ 2,910 $ 88,028
Swift Transportation
Co., Inc.*...................... 6,412 83,757
Superior Industries
International, Inc.............. 2,657 79,710
Cooper Tire & Rubber Co........... 7,505 75,519
Alaska Airgroup, Inc.*............ 2,688 64,512
USFreightways Corp................ 2,688 60,984
Werner Enterprises, Inc........... 4,785 56,224
Airborne Freight Corp............. 4,984 50,775
America West Holdings Corp.*...... 3,581 43,643
Federal-Mogul Corp................ 7,170 38,987
-----------
Total Common Stocks
(Cost $11,021,463).......... 12,117,796
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
-------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.5%
Repurchase Agreements
Collateralized by U.S. Treasury
Obligations (Note 2):
6.40% due 10/02/00............. $48,200 48,200
6.48% due 10/02/00............. 87,815 87,815
6.50% due 10/02/00............. 48,200 48,200
-----------
Total Repurchase
Agreements
(Cost $184,215)............ 184,215
-----------
Total Investments 100%
(Cost $11,205,678)......... $12,302,011
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 13
<PAGE>
RYDEX SERIES FUNDS
ENERGY SERVICES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 99.2%
Schlumberger Ltd............. 143,672 $11,825,998
Halliburton Co............... 210,058 10,279,713
Transocean Sedco
Forex, Inc................. 95,269 5,585,145
Baker Hughes, Inc............ 138,949 5,158,482
Nabors Industries, Inc.*..... 94,244 4,938,386
Noble Drilling Corp.*........ 80,426 4,041,407
R & B Falcon Corp.*.......... 125,632 3,501,992
Global Marine, Inc.*......... 113,340 3,499,373
Diamond Offshore
Drilling, Inc.............. 83,352 3,417,432
ENSCO International, Inc..... 89,264 3,414,348
BJ Services Co.*............. 55,522 3,393,782
Weatherford
International, Inc.*....... 70,337 3,024,491
Smith
International, Inc.*....... 32,625 2,660,977
Cooper Cameron Corp.*........ 33,998 2,505,228
Rowan Cos., Inc.*............ 60,758 1,761,982
Tidewater, Inc............... 36,030 1,639,365
Grant Prideco, Inc........... 70,169 1,539,332
National-Oilwell, Inc.*...... 42,869 1,339,656
Varco
International, Inc.*....... 59,175 1,231,580
Helmerich & Payne, Inc....... 32,131 1,160,732
Eastern Enterprises.......... 17,557 1,120,356
Pride
International, Inc.*....... 42,191 1,118,062
Marine Drilling
Co., Inc.*................. 37,832 1,080,577
Global Industries Ltd.*...... 59,461 743,263
Western Gas
Resources, Inc............. 20,832 522,102
SEACOR SMIT, Inc.*........... 10,876 507,094
Houston Exploration Co.*..... 18,779 474,170
McDermott
International, Inc......... 38,861 427,471
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Veritas DGC, Inc.*........... 14,651 $ 423,963
Newpark Resources, Inc.*..... 44,767 414,095
Parker Drilling Co.*......... 50,189 351,323
Input/Output, Inc.*.......... 33,092 318,511
CARBO Ceramics, Inc.......... 9,474 251,653
Oceaneering
International, Inc.*....... 14,677 244,005
-----------
Total Common Stocks (Cost
$58,142,082)........... 83,916,046
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.8%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00......... $188,149 188,149
6.48% due 10/02/00......... 342,782 342,782
6.50% due 10/02/00......... 188,149 188,149
-----------
Total Repurchase
Agreements
(Cost $719,080)........ 719,080
-----------
Total Investments 100%
(Cost $58,861,162)..... $84,635,126
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 14
<PAGE>
RYDEX SERIES FUNDS
BANKING FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 99.1%
BankAmerica Corp................ 93,210 $ 4,881,874
Wells Fargo Co.................. 100,105 4,598,571
Chase Manhattan Corp............ 76,944 3,553,851
Bank One Corp................... 75,385 2,911,746
Bank of New York Co., Inc....... 48,234 2,704,119
First Union Corp................ 64,128 2,064,120
Fleet Boston Financial Corp..... 51,866 2,022,774
J. P. Morgan & Co., Inc......... 10,617 1,734,552
Fifth Third Bancorp............. 30,388 1,637,154
Mellon Bank Corp................ 32,125 1,489,797
Washington Mutual, Inc.......... 35,824 1,426,243
Firstar Corp.................... 63,393 1,418,418
State Street Corp............... 10,522 1,367,860
Northern Trust Corp............. 14,539 1,292,154
PNC Financial Services Group.... 18,992 1,234,480
U.S. Bancorp.................... 49,170 1,118,618
SunTrust Banks, Inc............. 19,780 985,291
National City Corp.............. 39,647 877,190
Wachovia Corp................... 13,241 750,599
KeyCorp......................... 28,435 719,761
BB&T Corp....................... 22,796 686,730
Comerica, Inc................... 10,230 597,816
Golden West Financial Corp...... 10,339 554,429
Summit Bancorp.................. 11,506 396,957
Synovus Financial Corp.......... 18,468 391,291
Charter One Financial, Inc...... 14,390 350,756
Southtrust Corp................. 10,994 345,624
Marshall & Ilsley Corp.......... 6,802 340,950
Regions Financial Corp.......... 14,353 325,634
Union Planters Corp............. 8,850 292,603
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
Zions Bancorp................... 5,605 $ 286,643
Old Kent Financial Corp......... 8,981 259,888
UnionBanCal Corp................ 10,623 247,649
North Fork Bancorp., Inc........ 11,363 245,725
Popular, Inc.................... 8,887 240,504
Huntington Bancshares, Inc...... 14,518 213,233
First Security Corp............. 12,843 209,501
First Tennessee National
Corp.......................... 8,502 173,760
AmSouth BanCorp................. 12,847 160,588
-----------
Total Common Stocks
(Cost $38,051,560)........ 45,109,453
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.9%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00............ $112,764 112,764
6.48% due 10/02/00............ 205,442 205,442
6.50% due 10/02/00............ 112,764 112,764
-----------
Total Repurchase
Agreements
(Cost $430,970)........... 430,970
-----------
Total Investments 100%
(Cost $38,482,530)........ $45,540,423
===========
</TABLE>
See Notes to Financial Statements. 15
<PAGE>
RYDEX SERIES FUNDS
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
---------- ------------
<S> <C> <C>
COMMON STOCKS 98.8%
Amgen, Inc.*.............. 1,630,585 $113,860,693
Immunex Corp.*............ 1,488,041 64,729,781
MedImmune, Inc.*.......... 759,821 58,696,172
Millennium
Pharmaceuticals, Inc.*.... 362,667 52,972,049
Human Genome
Sciences, Inc.*......... 216,224 37,433,780
Biogen, Inc.*............. 529,713 32,312,493
Idec Pharmaceuticals
Corp.*.................. 176,048 30,871,667
Chiron Corp.*............. 555,551 24,999,795
Andrx Corp.*.............. 251,311 23,466,165
Gilead Sciences, Inc.*.... 176,659 19,377,284
Protein Design
Labs, Inc.*............. 157,967 19,035,024
Genzyme Corp. -- General
Division*............... 265,573 18,108,759
Vertex
Pharmaceuticals, Inc.*.... 211,467 17,868,962
COR
Therapeutics, Inc.*..... 209,469 13,052,537
PE Corp -- Celera
Genomic*................ 124,764 12,429,614
ALZA Corp.*............... 130,189 11,261,349
Affymetrix, Inc.*......... 218,948 10,920,032
Enzon, Inc.*.............. 160,929 10,621,314
Incyte
Pharmaceuticals, Inc.*.. 252,130 10,368,846
ICOS Corp.*............... 183,305 9,921,383
Inhale Therapeutic
Systems, Inc.*.......... 167,263 9,429,452
Alkermes, Inc.*........... 208,402 8,049,527
Myriad Genetics, Inc.*.... 82,837 7,123,982
BioChem Pharma, Inc.*..... 320,283 7,026,208
Alexion Pharmaceuticals,
Inc.*................... 59,572 6,791,208
Cephalon, Inc.*........... 134,509 6,523,687
Enzo Biochem, Inc.*....... 100,370 4,867,945
Aviron*................... 81,779 4,768,738
Immunomedics, Inc.*....... 195,361 4,090,371
Genzyme Transgenics
Corp.*.................. 113,449 3,999,077
Cell Genesys, Inc.*....... 132,836 3,985,080
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
---------- ------------
<S> <C> <C>
Transkaryotic
Therapies, Inc.*........ 89,916 $ 3,872,008
Maxim
Pharmaceuticals, Inc.*.. 62,496 3,796,632
XOMA Ltd.*................ 259,155 3,741,550
Geltex
Pharmaceuticals, Inc.*.. 79,645 3,728,382
Sicor, Inc.*.............. 358,041 3,669,920
Elan Corp.*............... 59,951 3,282,317
Pharmacyclics, Inc.*...... 63,271 3,139,823
Alliance Pharmaceutical
Corp.*.................. 187,036 2,852,299
Ligand
Pharmaceuticals, Inc.,
Class B*................ 218,467 2,799,109
Amylin
Pharmaceuticals, Inc.*.. 249,188 2,678,771
SuperGen, Inc.*........... 129,454 2,483,899
Bio-Technology General
Corp.*.................. 215,692 2,466,977
Geron Corp.*.............. 84,926 2,409,775
Regeneron
Pharmaceuticals, Inc.*.... 63,988 2,087,609
Vical, Inc.*.............. 78,575 2,033,128
Organogenesis, Inc.*...... 134,908 1,983,148
Coulter
Pharmaceutical, Inc.*.. 67,611 1,952,268
Neurogen Corp.*........... 61,763 1,922,373
Hyseq, Inc.*.............. 52,555 1,921,542
Biomira, Inc.*............ 175,794 1,845,837
Cytogen Corp.*............ 288,323 1,820,039
Aphton Corp.*............. 61,808 1,776,980
Advanced Tissue
Sciences, Inc.*......... 232,414 1,728,579
CryoLife, Inc.*........... 48,925 1,697,086
EntreMed, Inc.*........... 60,643 1,690,424
Genome Therapeutics
Corp.*.................. 81,663 1,679,195
Isis
Pharmaceuticals, Inc.*.. 140,906 1,620,419
Miravant Medical
Technologies*........... 72,508 1,577,049
Texas Biotechnology
Corp.*.................. 93,694 1,527,212
Martek Biosciences
Corp.*.................. 69,363 1,352,579
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 16
<PAGE>
RYDEX SERIES FUNDS
BIOTECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
---------- ------------
<S> <C> <C>
Triangle
Pharmaceuticals, Inc.*.... 151,019 $ 1,274,223
Genelabs
Technologies, Inc.*..... 161,714 965,230
Praecis Pharmaceutical*... 22,500 956,250
Scios, Inc.*.............. 91,496 949,271
ArQule, Inc.*............. 53,661 915,591
Curtis Inc.*.............. 45,475 906,658
LA Jolla Pharamaceutical
Co.*.................... 96,723 900,733
Orchid Biosciences*....... 25,000 850,000
Immune Response Corp.*.... 108,488 745,855
Serologicals Corp.*....... 92,141 639,228
Vivus, Inc.*.............. 127,825 543,256
Diacrin, Inc.*............ 70,993 505,825
Genzyme Corp. -- Tissue
Repair*................. 101,214 414,345
------------
Total Common Stocks
(Cost
$446,157,563)....... 740,666,368
------------
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
---------- ------------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.2%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations:
6.40% due 10/02/00...... $2,345,409 $ 2,345,409
6.48% due 10/02/00...... 4,273,008 4,273,008
6.50% due 10/02/00...... 2,345,409 2,345,409
------------
Total Repurchase
Agreements
(Cost $8,963,826)... 8,963,826
------------
Total Investments 100%
(Cost
$455,121,389)....... $749,630,194
============
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 17
<PAGE>
RYDEX SERIES FUNDS
ELECTRONICS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- ------------
<S> <C> <C>
COMMON STOCKS 98.6%
EMC Corp.................... 391,314 $ 38,789,000
Intel Corp.................. 510,173 21,204,065
Texas Instruments, Inc...... 332,762 15,702,205
JDS Uniphase Corp.*......... 141,001 13,351,030
Motorola, Inc............... 420,264 11,872,458
Broadcom Corp., Class A*.... 42,287 10,307,456
PMC-Sierra, Inc.*........... 38,433 8,272,703
Analog Devices, Inc.*....... 99,447 8,210,593
Applied Materials, Inc.*.... 135,794 8,054,282
Xilinx, Inc.*............... 90,838 7,778,004
Solectron Corp.*............ 167,448 7,723,539
Micron Technology, Inc...... 147,794 6,798,524
Applied Micro Circuits
Corp.*.................... 30,502 6,315,820
Maxim Integrated
Products, Inc.*........... 78,279 6,296,567
Linear Technology Corp...... 87,968 5,695,928
Altera Corp.*............... 112,609 5,377,080
Seagate
Technology, Inc.*......... 61,024 4,210,656
Vitesse Semiconductor
Corp.*.................... 44,463 3,954,428
ASM Lithography Holding,
N.V.*..................... 117,672 3,802,277
STMicroelectronics, N.V..... 75,468 3,594,164
Sanmina Corp.*.............. 35,892 3,360,389
Flextronics International,
Ltd.*..................... 33,418 2,744,453
LSI Logic Corp.*............ 86,074 2,517,665
Integrated Device
Tech, Inc.*............... 27,131 2,455,356
KLA Tencor Corp.*........... 53,220 2,191,999
Advanced Micro
Devices, Inc.*............ 90,140 2,129,558
Rambus, Inc.*............... 26,628 2,101,948
National Semiconductor
Corp.*.................... 48,228 1,941,177
Atmel Corp.*................ 122,129 1,854,834
Teradyne, Inc.*............. 49,573 1,735,055
SCI Systems, Inc.*.......... 40,688 1,668,208
Micrel, Inc.*............... 23,086 1,546,762
Novellus Systems, Inc.*..... 33,044 1,538,611
Molex, Inc.................. 27,636 1,504,435
Cypress Semiconductor
Corp.*.................... 33,582 1,395,752
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- ------------
<S> <C> <C>
Symbol
Technologies, Inc......... 38,327 $ 1,377,377
AVX Corp.................... 52,392 1,365,467
Sandisk Corp.*.............. 17,589 1,174,066
Microchip
Technology, Inc.*......... 34,611 1,144,326
Tektronix, Inc.............. 13,613 1,045,649
Vishay
Intertechnology, Inc.*.... 32,744 1,006,878
Arrow Electronics, Inc.*.... 25,904 882,355
LAM Research Corp.*......... 37,861 792,715
Lattice Semiconductor Corp.*
.......................... 14,056 755,510
Avnet, Inc.................. 25,946 736,218
Quantum Corp.*.............. 47,522 715,800
Taiwan Semiconductor,
Sponsored ADR*............ 33,971 692,159
Kemet Corp.*................ 25,034 691,564
Dallas Semiconductor Corp... 16,801 552,333
ASE Test, Ltd.*............. 22,382 470,022
Credence Systems Corp.*..... 14,156 424,680
Storage Technology Corp.*... 28,534 386,992
CTS Corp.................... 6,555 331,847
Thomas & Betts Corp......... 15,748 274,606
------------
Total Common Stocks
(Cost $154,369,635)... 242,817,545
------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
----------
<S> <C> <C>
REPURCHASE
AGREEMENTS 1.4%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00...... $ 888,230 888,230
6.48% due 10/02/00...... 1,618,230 1,618,230
6.50% due 10/02/00...... 888,230 888,230
------------
Total Repurchase
Agreements
(Cost $3,394,690).... 3,394,690
------------
Total Investments 100%
(Cost $157,764,325).. $246,212,235
============
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 18
<PAGE>
RYDEX SERIES FUNDS
PRECIOUS METALS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 99.2%
Barrick Gold Corp............ 350,817 $ 5,349,957
Placer Dome, Inc............. 374,930 3,538,402
Newmont Mining Corp.......... 175,449 2,982,633
Anglogold, Ltd., Sponsored
ADR........................ 92,188 1,693,954
Gold Fields, Ltd., Sponsored
ADR*....................... 507,812 1,555,174
De Beers Consolidated Mines,
Sponsored ADR.............. 52,723 1,459,768
Harmony Gold Mining Co.,
Ltd., Sponsored ADR........ 275,312 1,410,974
Freeport-McMoRan Copper &
Gold, Inc., Class B*....... 159,153 1,402,536
BHP, Ltd., Sponsored ADR..... 66,789 1,369,174
Homestake Mining Co.......... 261,544 1,356,759
Phelps Dodge Corp............ 31,892 1,331,491
Stillwater Mining Co.*....... 46,948 1,270,885
Meridian Gold, Inc.*......... 180,899 1,232,374
Battle Mountain Gold Co.*.... 578,297 1,012,020
Apex Silver Mines, Ltd.*..... 81,189 822,039
Anglo American PLC........... 15,375 803,104
Agnico-Eagle Mines, Ltd...... 113,053 657,121
Coeur d'Alene Mines Corp..... 199,039 248,799
Glamis Gold, Ltd............. 84,250 126,375
Kinross Gold Corp.*.......... 203,014 114,195
Hecla Mining Co.*............ 111,360 83,520
-----------
Total Common Stocks
(Cost $28,363,464)..... 29,821,254
-----------
<CAPTION>
MARKET
FACE VALUE
AMOUNT (NOTE 1)
-------- -----------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.8%
Repurchase Agreements
Collateralized by U.S.
Treasury Obligations
(Note 2):
6.40% due 10/02/00......... $ 61,616 $ 61,616
6.48% due 10/02/00......... 112,254 112,254
6.50% due 10/02/00......... 61,616 61,616
-----------
Total Repurchase
Agreements
(Cost $235,486)........ 235,486
-----------
Total Investments 100%
(Cost $28,598,950)..... $30,056,740
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 19
<PAGE>
RYDEX SERIES FUNDS
INTERNET FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
COMMON STOCKS 100%
Cisco Systems, Inc.*........... 35,911 $ 1,984,083
America Online, Inc.*.......... 33,919 1,823,146
Sun Microsystems, Inc.*........ 15,563 1,816,980
Yahoo! Inc..................... 17,996 1,637,636
eBay, Inc.*.................... 16,222 1,114,249
Exodus Communications, Inc.*.. 18,855 930,966
Amazon.com, Inc.*.............. 22,637 870,110
Qwest Communications
International, Inc.*......... 13,026 626,062
Level 3
Communications, Inc.*........ 6,541 504,475
VeriSign, Inc.*................ 2,321 470,147
Juniper Networks, Inc.*........ 2,030 444,443
Ariba, Inc.*................... 2,877 412,175
CMGI, Inc.*.................... 14,462 404,032
E*TRADE Group, Inc.*........... 21,466 352,847
Lycos, Inc.*................... 4,652 319,898
InfoSpace.com, Inc.*........... 9,843 297,751
Check Point Software
Technologies Ltd.*........... 1,859 292,792
Sapient Corp.*................. 6,545 266,300
Internet Capital
Group, Inc.*................. 14,650 255,459
VerticalNet, Inc............... 6,374 223,887
DoubleClick, Inc.*............. 6,906 220,992
PurchasePro.com, Inc.*......... 2,491 218,897
Broadcom Corp., Class A*....... 870 212,062
Terra Networks SA, Sponsored
ADR*......................... 5,702 209,548
Sycamore Networks, Inc.*....... 1,791 193,428
Global Crossing, Ltd.*......... 6,014 186,434
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
Redback Networks, Inc.*........ 1,113 $ 182,462
HomeStore.com, Inc.*........... 3,761 175,827
Inktomi Corp.*................. 1,534 174,876
FreeMarkets, Inc.*............. 3,044 173,889
Commerce One, Inc.*............ 2,166 170,031
Priceline.com, Inc.*........... 14,044 166,772
CheckFree Corp.*............... 3,469 145,319
Safeguard
Scientifics, Inc.*........... 7,155 142,653
MarchFirst, Inc.*.............. 8,915 139,854
WebMD Corp..................... 8,723 133,026
Phone.com, Inc.*............... 1,145 130,101
Software.com, Inc.*............ 696 126,280
At Home Corp., Series A*....... 8,174 115,458
CNET Networks, Inc.*........... 4,304 104,843
Portal Software, Inc.*......... 2,450 98,000
BroadVision, Inc.*............. 3,780 97,099
Scient Corp.*.................. 4,625 96,836
NaviSite, Inc.*................ 3,594 96,813
RealNetworks, Inc.*............ 2,370 94,207
Vitria Technology, Inc......... 1,950 90,919
Vignette Corp.................. 2,983 89,117
Go2Net, Inc.*.................. 1,610 87,368
Akamai Technologies, Inc.*..... 1,611 84,603
Webvan Group, Inc.............. 30,584 70,725
-----------
Total Common Stocks
(Cost $17,947,647)....... 19,275,877
-----------
Total Investments 100%
(Cost $17,947,647)....... $19,275,877
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 20
<PAGE>
RYDEX SERIES FUNDS
UTILITIES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
COMMON STOCKS 99.5%
SBC Communications, Inc...... 171,833 $ 8,591,649
Enron Corp................... 84,311 7,387,751
Verizon Communications....... 132,357 6,411,042
Duke Energy Corp............. 56,913 4,880,290
AT&T Corp.................... 158,206 4,647,301
AES Corp.*................... 67,801 4,644,369
BellSouth Corp............... 94,897 3,819,604
Southern Co.................. 100,339 3,254,746
Williams Cos., Inc........... 68,168 2,880,098
Dynegy, Inc., Class A........ 47,175 2,688,975
Coastal Corp................. 33,104 2,453,834
El Paso Energy Corp.......... 35,737 2,202,293
Dominion Resources, Inc...... 36,813 2,137,455
Reliant Energy, Inc.......... 45,418 2,111,937
Calpine Corp.*............... 19,735 2,059,841
American Electric Power
Co., Inc................... 49,865 1,950,968
FPL Group, Inc............... 27,641 1,817,396
TXU Corp..................... 40,812 1,617,176
Peco Energy Co............... 26,336 1,594,974
Unicom Corp.................. 27,586 1,549,988
Public Service Enterprise
Group, Inc................. 33,534 1,498,551
PG&E Corp.................... 59,877 1,448,275
Xcel Energy, Inc............. 52,337 1,439,268
Entergy Corp................. 35,585 1,325,541
Constellation Energy Group... 23,130 1,150,718
Consolidated Edison, Inc..... 32,914 1,123,190
CP&L Energy, Inc............. 24,706 1,029,931
Edison International......... 51,671 997,896
FirstEnergy Corp............. 35,727 962,396
PPL Corp..................... 22,293 930,733
Columbia Energy Group........ 12,975 921,225
Ameren Corp.................. 21,268 $ 890,598
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-------- -----------
<S> <C> <C>
DTE Energy Co................ 22,184 848,538
ALLTEL Corp.................. 16,002 835,104
KeySpan Corp................. 20,718 831,310
Cinergy Corp................. 24,632 814,396
Florida Progress Corp........ 15,248 807,191
Sempra Energy................ 31,660 658,924
Allegheny Energy, Inc........ 17,089 652,586
DPL, Inc..................... 20,524 610,589
GPU, Inc..................... 18,805 609,987
Citizens Communications Co... 40,869 549,177
Montana Power Co............. 16,301 544,046
Potomac Electric Power Co.... 18,281 460,453
CMS Energy Corp.............. 17,050 459,284
-----------
Total Common Stocks
(Cost $84,375,117)..... 91,101,594
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
REPURCHASE
AGREEMENTS 0.5%
Repurchase Agreements
Collateralized by U.S.
Treasury
Obligations (Note 2):
6.40% due 10/02/00......... $127,342 127,342
6.48% due 10/02/00......... 232,000 232,000
6.50% due 10/02/00......... 127,342 127,342
-----------
Total Repurchase
Agreements
(Cost $486,684)........ 486,684
-----------
Total Investments 100%
(Cost $84,861,801)..... $91,588,278
===========
</TABLE>
* NON-INCOME PRODUCING SECURITIES
See Notes to Financial Statements. 21
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL BASIC
ENERGY SERVICES HEALTH CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ------------ ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements................................ $ 530,272 $ 1,604,985 $ 962,969 $ 1,261,733 $ --
Investment Securities................................ 47,830,770 209,601,409 139,674,086 35,960,253 3,349,927
----------- ------------ ------------ ----------- ----------
Securities at Value (Note 1) - See
Accompanying Schedules............................. 48,361,042 211,206,394 140,637,055 37,221,986 3,349,927
Receivable for Securities Sold....................... -- -- -- 43,126,109 --
Investment Income Receivable......................... 71,263 144,933 75,049 13,169 49,310
Receivable for Shares Purchased...................... 3,150,455 47,510,645 54,554,016 60,983 1,502,519
Other Assets......................................... -- 59,573 -- 235 --
----------- ------------ ------------ ----------- ----------
Total Assets....................................... 51,582,760 258,921,545 195,266,120 80,422,482 4,901,756
----------- ------------ ------------ ----------- ----------
LIABILITIES
Payable for Securities Purchased..................... 3,107,300 39,341,676 49,322,046 -- 1,437,763
Liability for Shares Redeemed........................ 36,490 7,391,837 2,215,995 43,307,590 30,361
Investment Advisory Fee Payable...................... 56,635 112,796 43,032 60,991 2,545
Transfer Agent Fee Payable........................... 16,657 33,175 12,656 17,938 749
Distribution and Service Fee Payable................. 20,058 17,417 9,699 13,677 15
Other Liabilities.................................... 67,659 -- 177,815 31,634 26,761
----------- ------------ ------------ ----------- ----------
Total Liabilities.................................. 3,304,799 46,896,901 51,781,243 43,431,830 1,498,194
----------- ------------ ------------ ----------- ----------
NET ASSETS............................................. $48,277,961 $212,024,644 $143,484,877 $36,990,652 $3,403,562
=========== ============ ============ =========== ==========
INVESTOR CLASS:
Net Assets........................................... $21,971,387 $118,394,554 $ 61,820,028 $34,126,178 $2,380,102
Shares Outstanding................................... 1,799,967 10,620,172 5,104,636 1,387,688 392,601
Net Asset Value Per Share............................ $12.21 $11.15 $12.11 $24.59 $6.06
ADVISOR CLASS:
Net Assets........................................... $26,306,574 $ 93,630,090 $ 81,664,849 $ 2,864,474 $1,023,460
Shares Outstanding................................... 2,166,947 8,465,950 6,844,130 118,293 170,022
Net Asset Value Per Share............................ $12.14 $11.06 $11.93 $24.22 $6.02
</TABLE>
See Notes to Financial Statements. 22
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
---------- ---------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements................................. $ 28,782 $ 51,100 $ 352,331 $ 192,575 $ 184,215
Investment Securities................................. 5,056,281 1,057,923 68,435,659 19,198,201 12,117,796
---------- ---------- ------------ ----------- -------------
Securities at Value (Note 1) - See Accompanying
Schedules........................................... 5,085,063 1,109,023 68,787,990 19,390,776 12,302,011
Receivable for Securities Sold........................ -- 3,535,827 -- 2,020,682 3,051,558
Investment Income Receivable.......................... 2,768 1,756 15,370 30,162 25,315
Receivable for Shares Purchased....................... 1,450,507 1,000 48,541,949 1,868,459 14,360
Other Assets.......................................... 8,820 1,730 3,513 -- --
---------- ---------- ------------ ----------- -------------
Total Assets........................................ 6,547,158 4,649,336 117,348,822 23,310,079 15,393,244
---------- ---------- ------------ ----------- -------------
LIABILITIES
Payable for Securities Purchased...................... 1,358,736 -- 37,627,792 534,636 --
Liability for Shares Redeemed......................... 20,732 3,562,890 10,268,986 3,225,077 2,956,268
Investment Advisory Fee Payable....................... 1,771 1,138 17,861 16,591 11,296
Transfer Agent Fee Payable............................ 521 343 5,253 4,880 3,322
Distribution and Service Fee Payable.................. 28 -- -- 1,148 --
Other Liabilities..................................... -- 6,349 42,406 52,194 63,013
---------- ---------- ------------ ----------- -------------
Total Liabilities................................... 1,381,788 3,570,720 47,962,298 3,834,526 3,033,899
---------- ---------- ------------ ----------- -------------
NET ASSETS.............................................. $5,165,370 $1,078,616 $ 69,386,524 $19,475,553 $ 12,359,345
========== ========== ============ =========== =============
INVESTOR CLASS:
Net Assets............................................ $5,006,221 $1,009,103 $ 19,392,637 $15,881,061 $ 12,294,756
Shares Outstanding.................................... 710,060 98,400 1,830,530 1,044,883 2,102,647
Net Asset Value Per Share............................. $7.05 $10.26 $10.59 $15.20 $5.85
ADVISOR CLASS:
Net Assets............................................ $ 159,149 $ 69,513 $ 49,993,887 $ 3,594,492 $ 64,589
Shares Outstanding.................................... 22,818 6,914 4,770,467 240,274 11,416
Net Asset Value Per Share............................. $6.97 $10.05 $10.48 $14.96 $5.66
</TABLE>
See Notes to Financial Statements. 23
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY BIO- PRECIOUS
SERVICES BANKING TECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND FUND
----------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Repurchase Agreements............................... $ 719,080 $ 430,970 $ 8,963,826 $ 3,394,690 $ 235,486
Investment Securities............................... 83,916,046 45,109,453 740,666,368 242,817,545 29,821,254
----------- ----------- ------------ ------------ -----------
Securities at Value (Note 1) - See Accompanying
Schedules......................................... 84,635,126 45,540,423 749,630,194 246,212,235 30,056,740
Receivable for Securities Sold...................... -- 4,248,771 46,876,780 6,264,534 4,382,684
Investment Income Receivable........................ 45,850 81,745 5,002 32,278 90,261
Receivable for Shares Purchased..................... 6,295,253 1,548,546 4,318,743 1,609,745 1,043,251
Other Assets........................................ 44,497 40,993 -- -- --
----------- ----------- ------------ ------------ -----------
Total Assets...................................... 91,020,726 51,460,478 800,830,719 254,118,792 35,572,936
----------- ----------- ------------ ------------ -----------
LIABILITIES
Payable for Securities Purchased.................... 4,141,326 -- -- -- --
Liability for Shares Redeemed....................... 870,238 5,849,611 44,266,745 5,883,709 5,145,153
Investment Advisory Fee Payable..................... 99,645 39,140 540,274 256,784 23,545
Transfer Agent Fee Payable.......................... 29,307 11,513 158,904 75,525 7,848
Distribution and Service Fee Payable................ 9,450 2,963 29,781 26,616 --
Other Liabilities................................... -- -- 470,624 313,966 39,970
----------- ----------- ------------ ------------ -----------
Total Liabilities................................. 5,149,966 5,903,227 45,466,328 6,556,600 5,216,516
----------- ----------- ------------ ------------ -----------
NET ASSETS............................................ $85,870,760 $45,557,251 $755,364,391 $247,562,192 $30,356,420
=========== =========== ============ ============ ===========
INVESTOR CLASS:
Net Assets.......................................... $76,751,046 $37,862,010 $695,562,599 $225,722,894 $30,356,420
Shares Outstanding.................................. 7,372,840 4,741,983 20,020,654 6,523,699 1,738,620
Net Asset Value Per Share........................... $10.41 $7.98 $34.74 $34.60 $17.46
ADVISOR CLASS:
Net Assets.......................................... $ 9,119,714 $ 7,695,241 $ 59,801,792 $ 21,839,298 N/A
Shares Outstanding.................................. 885,113 975,481 1,750,380 639,680
Net Asset Value Per Share........................... $10.30 $7.89 $34.17 $34.14
</TABLE>
See Notes to Financial Statements. 24
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
--------------------------------------------------------------------------------
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNET UTILITIES
FUND FUND
----------- -----------
<S> <C> <C>
ASSETS
Repurchase Agreements..................................... $ -- $ 486,684
Investment Securities..................................... 19,275,877 91,101,594
----------- -----------
Securities at Value (Note 1) - See Accompanying
Schedules............................................... 19,275,877 91,588,278
Receivable for Securities Sold............................ 4,498,707 --
Investment Income Receivable.............................. 13 88,689
Receivable for Shares Purchased........................... 8,179 30,691,092
----------- -----------
Total Assets............................................ 23,782,776 122,368,059
----------- -----------
LIABILITIES
Payable for Securities Purchased.......................... -- 29,824,841
Liability for Shares Redeemed............................. 3,983,858 1,328,620
Investment Advisory Fee Payable........................... 43,781 44,428
Transfer Agent Fee Payable................................ 12,877 13,067
Other Liabilities......................................... 75,918 43,623
----------- -----------
Total Liabilities....................................... 4,116,434 31,254,579
----------- -----------
NET ASSETS.................................................. $19,666,342 $91,113,480
=========== ===========
INVESTOR CLASS:
Net Assets................................................ $ 3,266,434 $66,160,570
Shares Outstanding........................................ 447,897 5,523,239
Net Asset Value Per Share................................. $7.29 $11.98
ADVISOR CLASS:
Net Assets................................................ $16,399,908 $24,952,910
Shares Outstanding........................................ 2,242,927 2,083,904
Net Asset Value Per Share................................. $7.31 $11.97
</TABLE>
See Notes to Financial Statements. 25
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
Period Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)..................................... $ 13,784 $ 44,072 $ 49,139 $ 27,942 $ 2,973
Dividends, Net of Foreign Taxes Withheld (Note 1)..... 348,736 1,387,078 645,591 38,286 180,929
Other Income.......................................... (150,408) (36,134) 32,692 (40,724) (6,526)
----------- ------------ ----------- ------------ -----------
Total Income........................................ 212,112 1,395,016 727,422 25,504 177,376
----------- ------------ ----------- ------------ -----------
EXPENSES
Advisory Fees (Note 3)................................ 151,421 656,617 551,520 338,106 58,300
Transfer Agent Fees (Note 3).......................... 44,536 193,123 162,212 99,443 17,147
Audit and Outside Services............................ 945 7,624 6,160 3,818 1,203
Accounting Fees (Note 3).............................. 11,138 31,202 28,366 25,887 7,258
Legal................................................. 580 4,038 2,788 1,822 729
Registration Fees..................................... 2,224 11,140 9,475 16,024 2,151
Custodian Fees........................................ 19,754 45,219 51,410 39,539 14,468
Distribution Fees--Advisor Class (Note 3)............. 16,416 79,035 77,449 23,878 5,691
Servicing Fees--Advisor Class (Note 3)................ 16,416 79,035 77,449 23,878 5,691
Miscellaneous......................................... 64,762 (94,055) 256,936 (83,733) 5,855
----------- ------------ ----------- ------------ -----------
Total Expenses...................................... 328,192 1,012,978 1,223,765 488,662 118,493
Custodian Fees Paid Indirectly (Note 4)............. 660 2,859 2,410 1,471 255
----------- ------------ ----------- ------------ -----------
Net Expenses........................................ 327,532 1,010,119 1,221,355 487,191 118,238
----------- ------------ ----------- ------------ -----------
Net Investment Income (Loss)............................ (115,420) 384,897 (493,933) (461,687) 59,138
----------- ------------ ----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investment Securities.............. (1,937,039) (17,260,816) (2,125,238) (12,171,082) (3,758,741)
Net Change in Unrealized Appreciation (Depreciation) on
Investments........................................... 3,155,682 19,570,890 8,471,357 (20,761,513) (592,979)
----------- ------------ ----------- ------------ -----------
Net Gain (Loss) on Investments........................ 1,218,643 2,310,074 6,346,119 (32,932,595) (4,351,720)
----------- ------------ ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS... $ 1,103,223 $ 2,694,971 $ 5,852,186 $(33,394,282) $(4,292,582)
=========== ============ =========== ============ ===========
</TABLE>
See Notes to Financial Statements. 26
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
Period Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
------------ ----------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1).................................. $ 6,988 $ 5,198 $ 13,888 $ 15,561 $ 15,756
Dividends, Net of Foreign Taxes Withheld
(Note 1)......................................... 282,536 31,039 88,945 95,684 362,789
Other Income....................................... 33,185 (12,518) 25,148 (6,074) (28,431)
------------ ----------- ------------ ------------ -------------
Total Income..................................... 322,709 23,719 127,981 105,171 350,114
------------ ----------- ------------ ------------ -------------
EXPENSES
Advisory Fees (Note 3)............................. 123,194 58,651 184,840 197,521 206,952
Transfer Agent Fees (Note 3)....................... 36,233 17,250 54,365 58,094 60,868
Audit and Outside Services......................... 2,499 922 4,249 3,012 3,579
Accounting Fees (Note 3)........................... 10,123 7,353 14,866 20,331 16,839
Legal.............................................. 1,883 482 2,254 1,411 2,315
Registration Fees.................................. 4,614 1,856 4,317 9,657 5,251
Custodian Fees..................................... 16,775 15,722 23,565 24,401 20,898
Distribution Fees--Advisor Class (Note 3).......... 22,928 9,818 26,923 10,524 34,486
Servicing Fees--Advisor Class (Note 3)............. 22,928 9,818 26,923 10,524 34,486
Miscellaneous...................................... (31,490) 5,417 51,263 (56,176) 65,690
------------ ----------- ------------ ------------ -------------
Total Expenses................................... 209,687 127,289 393,565 279,299 451,364
Custodian Fees Paid Indirectly (Note 4).......... 538 256 804 864 903
------------ ----------- ------------ ------------ -------------
Net Expenses..................................... 209,149 127,033 392,761 278,435 450,461
------------ ----------- ------------ ------------ -------------
Net Investment Loss.................................. 113,560 (103,314) (264,780) (173,264) (100,347)
------------ ----------- ------------ ------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investment Securities........... (10,601,315) (3,114,247) (21,678,557) (2,371,955) (10,263,177)
Net Change in Unrealized Appreciation (Depreciation)
on Investments..................................... (490,109) 113,221 (1,301,154) (15,558,695) (405,111)
------------ ----------- ------------ ------------ -------------
Net Loss on Investments............................ (11,091,424) (3,001,026) (22,979,711) (17,930,650) (10,668,288)
------------ ----------- ------------ ------------ -------------
NET DECREASE IN NET ASSETS FROM OPERATIONS........... $(10,977,864) $(3,104,340) $(23,244,491) $(18,103,914) $ (10,768,635)
============ =========== ============ ============ =============
</TABLE>
See Notes to Financial Statements. 27
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF OPERATIONS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
Period Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY PRECIOUS
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1).................................. $ 30,225 $ 17,182 $ 215,742 $ 121,864 $ 7,936
Dividends, Net of Foreign Taxes Withheld
(Note 1)......................................... 269,495 1,036,985 -- 130,029 302,852
Other Income....................................... 198,096 (30,803) (34,301) 237,840 (14,710)
------------ ------------ ------------- ------------ -----------
Total Income..................................... 497,816 1,023,364 181,441 489,733 296,078
------------ ------------ ------------- ------------ -----------
EXPENSES
Advisory Fees (Note 3)............................. 440,006 251,689 2,677,880 1,548,748 183,353
Transfer Agent Fees (Note 3)....................... 129,413 74,026 787,612 455,514 61,118
Audit and Outside Services......................... 4,082 2,481 29,656 17,128 2,665
Accounting Fees (Note 3)........................... 25,362 18,863 81,525 54,825 19,230
Legal.............................................. 2,443 1,327 12,450 7,937 1,536
Registration Fees.................................. 8,232 4,957 54,494 32,064 5,266
Custodian Fees..................................... 34,159 24,665 144,582 84,700 17,232
Distribution Fees--Advisor Class (Note 3).......... 23,801 27,033 79,633 62,381 --
Servicing Fees--Advisor Class (Note 3)............. 23,801 27,033 79,633 62,381 --
Miscellaneous...................................... (69,630) (51,368) 181,737 276,379 4,955
------------ ------------ ------------- ------------ -----------
Total Expenses................................... 621,669 380,706 4,129,202 2,602,057 295,355
Custodian Fees Paid Indirectly (Note 4).......... 1,919 1,096 11,703 6,762 907
------------ ------------ ------------- ------------ -----------
Net Expenses..................................... 619,750 379,610 4,117,499 2,595,295 294,448
------------ ------------ ------------- ------------ -----------
Net Investment Income (Loss)......................... (121,934) 643,754 (3,936,058) (2,105,562) 1,630
------------ ------------ ------------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investment Securities........... (16,875,512) (21,305,041) (68,045,313) (47,795,434) (7,276,407)
Net Change in Unrealized Appreciation (Depreciation)
on Investments..................................... 6,198,504 3,898,152 152,370,624 (40,228,398) 760,029
------------ ------------ ------------- ------------ -----------
Net Gain (Loss) on Investments..................... (10,677,008) (17,406,889) 84,325,311 (88,023,832) (6,516,378)
------------ ------------ ------------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS......................................... $(10,798,942) $(16,763,135) $ 80,389,253 $(90,129,394) $(6,514,748)
============ ============ ============= ============ ===========
</TABLE>
See Notes to Financial Statements. 28
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF OPERATIONS (UNAUDITED) (CONCLUDED)
--------------------------------------------------------------------------------
Period Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNET UTILITIES
FUND* FUND*
----------- -----------
<S> <C> <C>
INVESTMENT INCOME
Interest (Note 1)......................................... $ 12,960 $ 5,462
Dividends, Net of Foreign Taxes Withheld (Note 1)......... -- 253,124
Other Income.............................................. 6,891 (13,757)
----------- -----------
Total Income............................................ 19,851 244,829
----------- -----------
EXPENSES
Advisory Fees (Note 3).................................... 128,520 77,893
Transfer Agent Fees (Note 3).............................. 37,800 22,910
Audit and Outside Services................................ 477 183
Accounting Fees (Note 3).................................. 7,592 3,934
Legal..................................................... 175 172
Registration Fees......................................... 178 115
Custodian Fees............................................ 11,594 9,119
Distribution Fees--Advisor Class (Note 3)................. 27,338 9,731
Servicing Fees--Advisor Class (Note 3).................... 27,338 9,731
Miscellaneous............................................. 56,156 32,803
----------- -----------
Total Expenses.......................................... 297,168 166,591
Custodian Fees Paid Indirectly (Note 4)................. 578 411
----------- -----------
Net Expenses............................................ 296,590 166,180
----------- -----------
Net Investment Income (Loss)................................ (276,739) 78,649
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investment Securities.................. (8,000,415) (3,229,899)
Net Change in Unrealized Appreciation on Investments........ 1,328,230 6,726,477
----------- -----------
Net Gain (Loss) on Investments............................ (6,672,185) 3,496,578
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS....... $(6,948,924) $ 3,575,227
=========== ===========
</TABLE>
<TABLE>
<C> <S>
* COMMENCEMENT OF OPERATIONS: APRIL 6, 2000--INTERNET FUND
INVESTOR AND ADVISOR CLASS; APRIL 3, 2000--UTILITIES FUND
INVESTOR AND ADVISOR CLASS.
</TABLE>
See Notes to Financial Statements. 29
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY FUND FINANCIAL SERVICES FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Income (Loss)......... $ (115,420) $ 103,915 $ 384,897 $ (118,381)
Net Realized Loss on
Investments........................ (1,937,039) (852,887) (17,260,816) (21,466,024)
Net Change in Unrealized Appreciation
on Investments..................... 3,155,682 576,502 19,570,890 6,528,169
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net Assets
from Operations.................... 1,103,223 (172,470) 2,694,971 (15,056,236)
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From Realized Gain on Investments
Investor Class .................... -- -- -- (85,446)
Advisor Class...................... -- -- -- (88,678)
----------- ----------- ------------ ------------
Total Distributions to
Shareholders....................... -- -- -- (174,124)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... 28,762,533 533,548 (65,878,552) 246,886,721
----------- ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets............................. 29,865,756 361,078 (63,183,581) 231,656,361
NET ASSETS--BEGINNING OF PERIOD........ 18,412,205 18,051,127 275,208,225 43,551,864
----------- ----------- ------------ ------------
NET ASSETS--END OF PERIOD.............. $48,277,961 $18,412,205 $212,024,644 $275,208,225
=========== =========== ============ ============
</TABLE>
See Notes to Financial Statements. 30
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HEALTH CARE FUND TECHNOLOGY FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Loss.................. $ (493,933) $ (181,535) $ (461,687) $ (1,179,584)
Net Realized Gain (Loss) on
Investments........................ (2,125,238) (5,944,978) (12,171,082) 31,334,941
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... 8,471,357 759,492 (20,761,513) 29,114,262
------------ ----------- ------------ ------------
Net Increase (Decrease) in Net Assets
from Operations.................... 5,852,186 (5,367,021) (33,394,282) 59,269,619
------------ ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From Realized Gain on Investments
Investor Class .................... -- (13,006) -- --
Advisor Class ..................... -- (2,122) -- --
------------ ----------- ------------ ------------
Total Distributions to
Shareholders....................... -- (15,128) -- --
------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... 105,163,098 23,811,084 (52,154,185) 36,600,319
------------ ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets............................. 111,015,284 18,428,935 (85,548,467) 95,869,938
NET ASSETS--BEGINNING OF PERIOD........ 32,469,593 14,040,658 122,539,119 26,669,181
------------ ----------- ------------ ------------
NET ASSETS--END OF PERIOD.............. $143,484,877 $32,469,593 $ 36,990,652 $122,539,119
============ =========== ============ ============
</TABLE>
See Notes to Financial Statements. 31
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BASIC MATERIALS FUND CONSUMER PRODUCTS FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Income (Loss)......... $ 59,138 $ 264,589 $ 113,560 $ (86,570)
Net Realized Loss on
Investments........................ (3,758,741) (3,917,664) (10,601,315) (3,394,356)
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... (592,979) 624,960 (490,109) (318,356)
------------ ----------- ------------ -----------
Net Decrease in Net Assets from
Operations......................... (4,292,582) (3,028,115) (10,977,864) (3,799,282)
------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From Realized Gain on Investments
Investor Class .................... -- -- -- (44,500)
Advisor Class ..................... -- -- -- (738,697)
------------ ----------- ------------ -----------
Total Distributions to Shareholders.... -- -- -- (783,197)
------------ ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... (14,236,284) 22,093,367 3,827,132 (5,333,752)
------------ ----------- ------------ -----------
Net Increase (Decrease) in Net
Assets............................. (18,528,866) 19,065,252 (7,150,732) (9,916,231)
NET ASSETS--BEGINNING OF PERIOD........ 21,932,428 2,867,176 12,316,102 22,232,333
------------ ----------- ------------ -----------
NET ASSETS--END OF PERIOD.............. $ 3,403,562 $21,932,428 $ 5,165,370 $12,316,102
============ =========== ============ ===========
</TABLE>
See Notes to Financial Statements. 32
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LEISURE FUND RETAILING FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Loss.................. $ (103,314) $ (13,923) $ (264,780) $ (159,230)
Net Realized Gain (Loss) on
Investments........................ (3,114,247) (3,349,492) (21,678,557) 9,078,600
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... 113,221 (901,853) (1,301,154) (6,938,229)
------------ ----------- ------------- ------------
Net Increase (Decrease) in Net Assets
from Operations.................... (3,104,340) (4,265,268) (23,244,491) 1,981,141
------------ ----------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From Realized Gain on Investments
Investor Class .................... -- (24,743) -- (49,622)
Advisor Class ..................... -- (19,785) -- (33,828)
------------ ----------- ------------- ------------
Total Distributions to
Shareholders....................... -- (44,528) -- (83,450)
------------ ----------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... (19,939,561) 23,628,274 (80,206,075) 125,382,979
------------ ----------- ------------- ------------
Net Increase (Decrease) in Net
Assets............................. (23,043,901) 19,318,478 (103,450,566) 127,280,670
NET ASSETS--BEGINNING OF PERIOD........ 24,122,517 4,804,039 172,837,090 45,556,420
------------ ----------- ------------- ------------
NET ASSETS--END OF PERIOD.............. $ 1,078,616 $24,122,517 $ 69,386,524 $172,837,090
============ =========== ============= ============
</TABLE>
See Notes to Financial Statements. 33
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TELECOMMUNICATIONS FUND TRANSPORTATION FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Loss.................. $ (173,264) $ (533,135) $ (100,347) $ (44,973)
Net Realized Gain (Loss) on
Investments........................ (2,371,955) 16,564,307 (10,263,177) (1,666,272)
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... (15,558,695) 19,910,114 (405,111) 1,238,395
------------ ----------- ------------ ------------
Net Increase (Decrease) in Net Assets
from Operations.................... (18,103,914) 35,941,286 (10,768,635) (472,850)
------------ ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From Realized Gain on Investments
Investor Class .................... -- (20,927) -- --
Advisor Class ..................... -- (3,084) -- --
------------ ----------- ------------ ------------
Total Distributions to
Shareholders....................... -- (24,011) -- --
------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... (32,773,858) 20,207,309 (82,562,256) 103,144,182
------------ ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets............................. (50,877,772) 56,124,584 (93,330,891) 102,671,332
NET ASSETS--BEGINNING OF PERIOD........ 70,353,325 14,228,741 105,690,236 3,018,904
------------ ----------- ------------ ------------
NET ASSETS--END OF PERIOD.............. $ 19,475,553 $70,353,325 $ 12,359,345 $105,690,236
============ =========== ============ ============
</TABLE>
See Notes to Financial Statements. 34
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENERGY SERVICES FUND BANKING FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Income (Loss)......... $ (121,934) $ (388,946) $ 643,754 $ 97,710
Net Realized Loss on
Investments........................ (16,875,512) (8,199,128) (21,305,041) (11,496,684)
Net Change in Unrealized Appreciation
on Investments..................... 6,198,504 9,819,662 3,898,152 2,857,006
------------ ----------- ------------ ------------
Net Increase (Decrease) in Net Assets
from Operations.................... (10,798,942) 1,231,588 (16,763,135) (8,541,968)
------------ ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1)............................. -- -- -- --
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... 7,536,771 (8,557,296) 4,902,498 58,129,988
------------ ----------- ------------ ------------
Net Increase (Decrease) in Net
Assets............................. (3,262,171) (7,325,708) (11,860,637) 49,588,020
NET ASSETS--BEGINNING OF PERIOD........ 89,132,931 96,458,639 57,417,888 7,829,868
------------ ----------- ------------ ------------
NET ASSETS--END OF PERIOD.............. $ 85,870,760 $89,132,931 $ 45,557,251 $ 57,417,888
============ =========== ============ ============
</TABLE>
See Notes to Financial Statements. 35
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BIOTECHNOLOGY FUND ELECTRONICS FUND
------------------------------------ ------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
------------------- --------------- ------------------- ---------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Loss.................. $ (3,936,058) $ (3,387,675) $ (2,105,562) $ (1,685,703)
Net Realized Gain (Loss) on
Investments........................ (68,045,313) (54,111,549) (47,795,434) 9,632,774
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... 152,370,624 135,921,230 (40,228,398) 123,021,801
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Assets
from Operations.................... 80,389,253 78,422,006 (90,129,394) 130,968,872
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From Realized Gain on Investments
Investor Class .................... -- (107,916) -- --
Advisor Class ..................... -- (16,072) -- --
------------ ------------ ------------ ------------
Total Distributions to
Shareholders....................... -- (123,988) -- --
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (NOTE 7)................ 172,915,058 383,719,101 38,104,047 151,781,114
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net
Assets............................. 253,304,311 462,017,119 (52,025,347) 282,749,986
NET ASSETS--BEGINNING OF PERIOD........ 502,060,080 40,042,961 299,587,539 16,837,553
------------ ------------ ------------ ------------
NET ASSETS--END OF PERIOD.............. $755,364,391 $502,060,080 $247,562,192 $299,587,539
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements. 36
<PAGE>
RYDEX SERIES FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONCLUDED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRECIOUS METALS FUND INTERNET FUND UTILITIES FUND
------------------------------------ -------------------- --------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000* SEPTEMBER 30, 2000*
------------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM OPERATIONS
Net Investment Income (Loss)......... $ 1,630 $ (123,814) $ (276,739) $ 78,649
Net Realized Loss on
Investments........................ (7,276,407) (16,292,915) (8,000,415) (3,229,899)
Net Change in Unrealized Appreciation
(Depreciation) on Investments...... 760,029 (834,336) 1,328,230 6,726,477
----------- ------------ ----------- -----------
Net Increase (Decrease) in Net Assets
from Operations.................... (6,514,748) (17,251,065) (6,948,924) 3,575,227
DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1)............................. -- -- -- --
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (NOTE 7)..... (908,781) 28,207,743 26,615,266 87,538,253
----------- ------------ ----------- -----------
Net Increase (Decrease) in Net
Assets............................. (7,423,529) 10,956,678 19,666,342 91,113,480
NET ASSETS--BEGINNING OF PERIOD........ 37,779,949 26,823,271 -- --
----------- ------------ ----------- -----------
NET ASSETS--END OF PERIOD.............. $30,356,420 $ 37,779,949 $19,666,342 $91,113,480
=========== ============ =========== ===========
</TABLE>
* COMMENCEMENT OF OPERATIONS: APRIL 6, 2000--INTERNET FUND INVESTOR AND ADVISOR
CLASS; APRIL 3, 2000--UTILITIES FUND INVESTOR AND ADVISOR CLASS.
See Notes to Financial Statements. 37
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
ENERGY FUND FINANCIAL SERVICES FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $10.87 $ 8.99 $10.00 $ 9.48 $9.99 $10.00
-------------- ---------- ---------- -------------- ---------- ---------
Net Investment Income (Loss).............. (.06) .08 .05 .04 (.01) (.01)
Net Realized and Unrealized Gains (Losses)
on Securities........................... 1.40 1.80 (1.06) 1.63 (.49) --
-------------- ---------- ---------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... 1.34 1.88 (1.01) 1.67 (.50) (.01)
Distributions to Shareholders from Net
Realized Capital Gains.................. -- -- -- -- (.01) --
-------------- ---------- ---------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................... 1.34 1.88 (1.01) 1.67 (.51) (.01)
-------------- ---------- ---------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD.............. $12.21 $10.87 $ 8.99 $11.15 $9.48 $ 9.99
============== ========== ========== ============== ========== =========
TOTAL INVESTMENT RETURN..................... 12.33% 20.91% (10.10)% 17.62% (4.97)% (0.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.67%** 1.58% 1.62%** 1.11%** 1.72% 1.58%**
Net Expenses.............................. 1.67%** 1.57% 1.62%** 1.10%** 1.71% 1.57%**
Net Investment Income (Loss).............. (1.10)%** 0.83% 0.69%** 0.72%** (0.15)% (0.07)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 861% 2,854% 6,070% 741% 2,770% 7,269%
Net Assets, End of Period (000's
omitted)................................ $21,971 $13,980 $17,442 $118,395 $145,449 $22,165
</TABLE>
<TABLE>
<C> <S>
+ 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.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 38
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
HEALTH CARE FUND TECHNOLOGY FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $10.25 $11.45 $10.00 $31.59 $17.02 $10.00
-------------- --------- --------- -------------- ---------- ---------
Net Investment Loss....................... (.03) (.04) (.02) (.15) (.19) (.16)
Net Realized and Unrealized Gains (Losses)
on Securities........................... 1.89 (1.15) 1.47 (6.85) 14.76 7.18
-------------- --------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... 1.86 (1.19) 1.45 (7.00) 14.57 7.02
Distributions to Shareholders from Net
Realized Capital Gains.................. -- (.01) -- -- -- --
-------------- --------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................... 1.86 (1.20) 1.45 (7.00) 14.57 7.02
-------------- --------- --------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD.............. $12.11 $10.25 $11.45 $24.59 $31.59 $17.02
============== ========= ========= ============== ========== =========
TOTAL INVESTMENT RETURN..................... 18.15% (10.44)% 14.50% (22.16)% 85.61% 70.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.72%** 1.41% 1.44%** 1.11%** 1.41% 1.39%**
Net Expenses.............................. 1.71%** 1.41% 1.43%** 1.11%** 1.40% 1.39%**
Net Investment Loss....................... (0.47)%** (0.36)% (0.21)%** (1.04)%** (0.85)% (1.23)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 787% 4,850% 4,465% 1,543% 4,929% 4,598%
Net Assets, End of Period (000's
omitted)................................ $61,820 $30,729 $14,016 $34,126 $90,002 $24,400
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 17, 1998--HEALTH
CARE FUND; APRIL 14, 1998--TECHNOLOGY FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 39
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
BASIC MATERIALS FUND CONSUMER PRODUCTS FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 30, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $7.97 $7.75 $10.00 $7.56 $9.71 $10.00
-------------- ---------- --------- -------------- ---------- ---------
Net Investment Income..................... .03 .20 -- .05 .04 --
Net Realized and Unrealized Gains (Losses)
on Securities........................... (1.94) .02 (2.25) (.56) (1.84) (.29)
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... (1.91) .22 (2.25) (.51) (1.80) (.29)
Distributions to Shareholders from Net
Realized Capital Gains.................. -- -- -- -- (.35) --
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................... (1.91) .22 (2.25) (.51) (2.15) (.29)
-------------- ---------- --------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD.............. $6.06 $7.97 $ 7.75 $7.05 $7.56 $ 9.71
============== ========== ========= ============== ========== =========
TOTAL INVESTMENT RETURN..................... (23.96)% 2.84% (22.50)% (6.75)% (19.20)% (2.90)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.54%** 1.54% 1.62%** 1.10%** 1.37% 1.55%**
Net Expenses.............................. 1.54%** 1.53% 1.61%** 1.09%** 1.36% 1.54%**
Net Investment Income (Loss).............. 0.74%** 2.21% (0.02)%** 1.32%** 0.49% (0.03)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 2,215% 3,641% 5,704% 2,386% 5,466% 1,255%
Net Assets, End of Period (000's
omitted)................................ $2,380 $16,851 $2,179 $5,006 $9,181 $1,280
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--BASIC
MATERIALS FUND; JULY 6, 1998--CONSUMER PRODUCTS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 40
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
LEISURE FUND RETAILING FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $11.10 $11.21 $10.00 $13.22 $13.54 $10.00
-------------- ---------- --------- -------------- ---------- ---------
Net Investment Income (Loss).............. (.05) .03 (.08) (.05) .02 (.10)
Net Realized and Unrealized Gains (Losses)
on Securities........................... (.79) (.04) 1.29 (2.58) (.23) 3.64
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... (.84) (.01) 1.21 (2.63) (.21) 3.54
Distributions to Shareholders from Net
Realized Capital Gains.................. -- (.10) -- -- (.11) --
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................... (.84) (.11) 1.21 (2.63) (.32) 3.54
-------------- ---------- --------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD.............. $10.26 $11.10 $11.21 $10.59 $13.22 $13.54
============== ========== ========= ============== ========== =========
TOTAL INVESTMENT RETURN..................... (7.57) (0.07)% 12.10% (19.89)% (1.51)% 35.40%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.54%** 1.58% 1.59%** 1.51%** 1.44% 1.42%**
Net Expenses.............................. 1.54%** 1.58% 1.59%** 1.51%** 1.44% 1.42%**
Net Investment Income (Loss).............. (1.10)%** 0.30% (0.76)%** (0.79)%** 0.16% (0.81)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 1,154% 5,734% 5,581% 1,214% 2,537% 3,243%
Net Assets, End of Period (000's
omitted)................................ $1,009 $5,563 $4,796 $19,393 $81,097 $45,219
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--LEISURE
FUND AND RETAILING FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 41
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND TRANSPORTATION FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $20.39 $13.03 $10.00 $6.24 $7.99 $10.00
-------------- ---------- --------- -------------- ---------- ---------
Net Investment Loss....................... (.06) (.10) (.04) (.01) (.07) (.03)
Net Realized and Unrealized Gains (Losses)
on Securities........................... (5.13) 7.47 3.07 (.38) (1.68) (1.98)
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... (5.19) 7.37 3.03 (.39) (1.75) (2.01)
Distributions to Shareholders from Net
Realized Capital Gains.................. -- (.01) -- -- -- --
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................... (5.19) 7.36 3.03 (.39) (1.75) (2.01)
-------------- ---------- --------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD.............. $15.20 $20.39 $13.03 $5.85 $6.24 $ 7.99
============== ========== ========= ============== ========== =========
TOTAL INVESTMENT RETURN..................... (25.45)% 56.54% 30.30% (6.25)% (21.90)% (20.10)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.11%** 1.50% 1.56%** 1.54%** 1.97% 1.58%**
Net Expenses.............................. 1.10%** 1.49% 1.55%** 1.54%** 1.96% 1.58%**
Net Investment Loss....................... (0.62)%** (0.59)% (0.34)%** (0.38)%** (0.92)% (0.36)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 519% 1,555% 2,788% 697% 1,970% 7,583%
Net Assets, End of Period (000's
omitted)................................ $15,881 $66,904 $12,300 $12,295 $18,501 $3,014
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1,
1998--TELECOMMUNICATIONS FUND; APRIL 2, 1998--TRANSPORTATION
FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 42
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
ENERGY SERVICES FUND BANKING FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $ 9.31 $6.02 $10.00 $7.31 $8.77 $10.00
-------------- ---------- --------- -------------- ---------- ----------
Net Investment Income (Loss).............. -- (.06) (.07) .08 .07 .01
Net Realized and Unrealized Gains (Losses)
on Securities........................... 1.10 3.35 (3.91) .59 (1.53) (1.24)
-------------- ---------- --------- -------------- ---------- ----------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... 1.10 3.29 (3.98) .67 (1.46) (1.23)
Distributions to Shareholders............. -- -- -- -- -- --
-------------- ---------- --------- -------------- ---------- ----------
Net Increase (Decrease) in Net Asset
Value................................... 1.10 3.29 (3.98) .67 (1.46) (1.23)
-------------- ---------- --------- -------------- ---------- ----------
NET ASSET VALUE--END OF PERIOD.............. $10.41 $9.31 $ 6.02 $7.98 $7.31 $ 8.77
============== ========== ========= ============== ========== ==========
TOTAL INVESTMENT RETURN..................... 11.82% 54.65% (39.80)% 9.17% (16.65)% (12.30)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.11%** 1.58% 1.58%** 1.10%** 1.58% 1.58%**
Net Expenses.............................. 1.10%** 1.57% 1.57%** 1.10%** 1.57% 1.57%**
Net Investment Income (Loss).............. (0.04)%** (0.81)% (1.14)%** 2.28%** 0.87% 0.13%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 501% 1,794% 3,170% 893% 3,829% 11,211%
Net Assets, End of Period (000's
omitted)................................ $76,751 $54,609 $74,135 $37,862 $39,546 $7,827
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 1998--ENERGY
SERVICES FUND AND BANKING FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 43
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
-----------------------------------------------------------------------------------
BIOTECHNOLOGY FUND ELECTRONICS FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........ $28.88 $12.81 $10.00 $40.10 $14.02 $10.00
-------------- ---------- --------- -------------- ---------- ---------
Net Investment Loss....................... (.18) (.34) (.16) (.20) (.30) (.15)
Net Realized and Unrealized Gains (Losses)
on Securities........................... 6.04 16.45 2.97 (5.30) 26.38 4.17
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations............... 5.86 16.11 2.81 (5.50) 26.08 4.02
Distributions to Shareholders from Net
Realized Capital Gain................... -- (.04) -- -- -- --
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................... 5.86 16.07 2.81 (5.50) 26.08 4.02
-------------- ---------- --------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD.............. $34.74 $28.88 $12.81 $34.60 $40.10 $14.02
============== ========== ========= ============== ========== =========
TOTAL INVESTMENT RETURN..................... 20.29% 125.98% 28.10% (13.72%) 186.02% 40.20%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................ 1.26%** 1.42% 1.56%** 1.36%** 1.29% 1.57%**
Net Expenses.............................. 1.25%** 1.41% 1.55%** 1.35%** 1.28% 1.56%**
Net Investment Loss....................... (1.20)%** (1.29%) (1.52%)** (1.06)%** (1.14%) (1.23%)**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................ 167% 699% 2,670% 416% 1,162% 3,011%
Net Assets, End of Period (000's
omitted)................................ $695,563 $456,303 $38,205 $225,723 $274,554 $12,814
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1,
1998--BIOTECHNOLOGY FUND AND ELECTRONICS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 44
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
------------------------------------------------------------------------------
PRECIOUS METALS FUND
------------------------------------------------------------------------------
PERIOD YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, MARCH 31, MARCH 31, JUNE 30,
2000++ 2000++ 1999++ 1998++ 1997***++ 1996++
-------------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD............. $18.80 $20.95 $29.10 $38.20 $45.25 $43.65
-------------- ---------- ---------- ---------- ---------- --------
Net Investment Loss............................ -- (.10) (.15) -- -- --
Net Realized and Unrealized Gains (Losses) on
Securities................................... (1.34) (2.05) (8.00) (9.10) (7.05) 1.60
-------------- ---------- ---------- ---------- ---------- --------
Net Increase (Decrease) in Net Asset Value
Resulting from Operations.................... (1.34) (2.15) (8.15) (9.10) (7.05) 1.60
Distributions to Shareholders from Net
Investment Income............................ -- -- -- -- -- --
-------------- ---------- ---------- ---------- ---------- --------
Net Increase (Decrease) in Net Asset Value..... (1.34) (2.15) (8.15) (9.10) (7.05) 1.60
-------------- ---------- ---------- ---------- ---------- --------
NET ASSET VALUE--END OF PERIOD................... $17.46 $18.80 $20.95 $29.10 $38.20 $45.25
============== ========== ========== ========== ========== ========
TOTAL INVESTMENT RETURN.......................... (7.13)% (10.26)% (28.01)% (23.82)% (20.77)%* 3.67%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses................................. 1.21%* 1.23% 1.37% 1.42% 1.49%*
Net Expenses................................... 1.20%* 1.23% 1.36% 1.41% 1.45%* 1.33%
Net Investment Income (Loss)................... 0.01%* (0.34)% (0.69)% 0.05% 0.00%* (0.01)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate**...................... 463% 1,004% 1,191% 752% 743% 1,036%
Net Assets, End of Year (000's omitted)........ $30,356 $37,780 $26,823 $34,538 $23,680 $36,574
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE YEAR.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED JUNE 30, 1996
THROUGH MARCH 31, 2000 HAVE BEEN RESTATED TO REFLECT A 1:5
REVERSE STOCK SPLIT EFFECTIVE APRIL 14, 2000.
* ANNUALIZED
** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
*** DURING 1997, THE TRUST CHANGED ITS FISCAL YEAR END FROM JUNE
30 TO MARCH 31. ACCORDINGLY, THE PERIOD ENDED MARCH 31,
1997 REFLECTS NINE MONTHS OF ACTIVITY.
</TABLE>
See Notes to Financial Statements. 45
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR CLASS
--------------------------------
INTERNET FUND UTILITIES FUND
-------------- --------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000* 2000*
-------------- --------------
<S> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........................ $10.00 $10.00
-------------- --------------
Net Investment Income (Loss).............................. (.06) .06
Net Realized and Unrealized Gains (Losses) on
Securities.............................................. (2.65) 1.92
-------------- --------------
Net Increase (Decrease) in Net Asset Value Resulting from
Operations.............................................. (2.71) 1.98
Distributions to Shareholders............................. -- --
-------------- --------------
Net Increase (Decrease) in Net Asset Value................ (2.71) 1.98
-------------- --------------
NET ASSET VALUE--END OF PERIOD.............................. $ 7.29 $ 11.98
============== ==============
TOTAL INVESTMENT RETURN..................................... (27.10)% 19.80%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................................ 1.60%** 1.61%**
Net Expenses.............................................. 1.60%** 1.61%**
Net Investment Income (Loss).............................. (1.38)%** 1.16%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................................ 971% 605%
Net Assets, End of Period (000's omitted)................. $3,266 $66,161
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6,
2000--INTERNET FUND; APRIL 3, 2000--UTILITIES FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 46
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
----------------------------------------------------------------------------------------
ENERGY FUND FINANCIAL SERVICES FUND
------------------------------------------ ------------------------------------------
PERIOD YEAR YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF
PERIOD........................... $10.84 $ 9.01 $10.07 $ 9.42 $9.95 $10.47
-------------- ---------- ---------- -------------- ---------- ----------
Net Investment Income (Loss)..... .01 .15 (.14) .01 (.05) (.05)
Net Realized and Unrealized Gains
(Losses) on Securities......... 1.29 1.68 (.92) 1.63 (.47) (.47)
-------------- ---------- ---------- -------------- ---------- ----------
Net Increase (Decrease) in Net
Asset Value Resulting from
Operations..................... 1.30 1.83 (1.06) 1.64 (.52) (.52)
Distributions to Shareholders
from Net Realized Capital
Gains.......................... -- -- -- -- (.01) --
-------------- ---------- ---------- -------------- ---------- ----------
Net Increase (Decrease) in Net
Asset Value.................... 1.30 1.83 (1.06) 1.64 (.53) (.52)
-------------- ---------- ---------- -------------- ---------- ----------
NET ASSET VALUE--END OF PERIOD..... $12.14 $10.84 $ 9.01 $11.06 $9.42 $ 9.95
============== ========== ========== ============== ========== ==========
TOTAL INVESTMENT RETURN............ 11.99% 20.31% (10.53)% 17.41% (5.19)% (4.97)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses................... 2.14%** 2.06% 1.99%** 1.61%** 2.29% 2.13%**
Net Expenses..................... 2.13%** 2.05% 1.98%** 1.61%** 2.28% 2.12%**
Net Investment Income (Loss)..... 0.13%** 1.45% (1.75)%** 0.18%** (0.64)% (0.60)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***....... 861% 2,854% 6,070% 741% 2,770% 7,269%
Net Assets, End of Period (000's
omitted)....................... $26,307 $4,432 $609 $93,630 $129,760 $21,387
</TABLE>
<TABLE>
<C> <S>
+ 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.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 47
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------------------------
HEALTH CARE FUND TECHNOLOGY FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF
PERIOD.............................. $10.12 $11.37 $ 9.93 $31.20 $16.90 $10.84
-------------- ---------- ---------- -------------- ---------- ----------
Net Investment Loss................. (.06) (.15) (.18) (.21) (.37) (.20)
Net Realized and Unrealized Gains
(Losses) on Securities............ 1.87 (1.09) 1.62 (6.77) 14.67 6.26
-------------- ---------- ---------- -------------- ---------- ----------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations... 1.81 (1.24) 1.44 (6.98) 14.30 6.06
Distributions to Shareholders from
Net Realized Capital Gains........ -- (.01) -- -- -- --
-------------- ---------- ---------- -------------- ---------- ----------
Net Increase (Decrease) in Net Asset
Value............................. 1.81 (1.25) 1.44 (6.98) 14.30 6.06
-------------- ---------- ---------- -------------- ---------- ----------
NET ASSET VALUE--END OF PERIOD........ $11.93 $10.12 $11.37 $24.22 $31.20 $16.90
============== ========== ========== ============== ========== ==========
TOTAL INVESTMENT RETURN............... 17.89% (10.95)% 14.50% (22.37)% 84.62% 55.90%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses...................... 2.07%** 2.16% 2.24%** 1.61%** 1.89% 2.18%**
Net Expenses........................ 2.06%** 2.15% 2.23%** 1.60%** 1.89% 2.17%**
Net Investment Loss................. (1.07)%** (1.51)% (1.96)%** (1.55)%** (1.60)% (1.78)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***.......... 787% 4,850% 4,465% 1,543% 4,929% 4,598%
Net Assets, End of Period (000's
omitted).......................... $81,665 $1,741 $24 $2,864 $32,537 $2,269
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 11, 1998--HEALTH
CARE FUND; APRIL 29, 1998--TECHNOLOGY FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 48
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
----------------------------------------------------------------------------------------
BASIC MATERIALS FUND CONSUMER PRODUCTS FUNDS
------------------------------------------ ------------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF
PERIOD........................... $ 7.93 $7.72 $10.56 $7.50 $ 9.70 $8.73
-------------- ---------- ---------- -------------- ---------- ----------
Net Investment Income (Loss)..... .04 (.01) .13 .02 (.08) (.08)
Net Realized and Unrealized Gains
(Losses) on Securities......... (1.95) .22 (2.97) (.55) (1.77) 1.05
-------------- ---------- ---------- -------------- ---------- ----------
Net Increase (Decrease) in Net
Asset Value Resulting from
Operations..................... (1.91) .21 (2.84) (.53) (1.85) .97
Distributions to Shareholders
from Net Realized Capital
Gains.......................... -- -- -- -- (.35) --
-------------- ---------- ---------- -------------- ---------- ----------
Net Increase (Decrease) in Net
Asset Value.................... (1.91) .21 (2.84) (.53) (2.20) .97
-------------- ---------- ---------- -------------- ---------- ----------
NET ASSET VALUE--END OF PERIOD..... $ 6.02 $7.93 $ 7.72 $6.97 $ 7.50 $9.70
============== ========== ========== ============== ========== ==========
TOTAL INVESTMENT RETURN............ (24.09)% 2.72% (26.89)% (7.07)% (19.76)% 11.11%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses................... 2.09%** 2.01% 1.96%** 1.65%** 2.13% 2.05%**
Net Expenses..................... 2.09%** 2.00% 1.95%** 1.64%** 2.13% 2.04%**
Net Investment Income (Loss)..... 1.10%** (0.10)% 1.25%** 0.47%** (1.01)% (1.38)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate**........ 2,215% 3,671% 5,704% 2,386% 5,466% 1,255%
Net Assets, End of Period (000's
omitted)....................... $1,023 $5,082 $688 $159 $3,135 $20,952
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 14, 1998--BASIC
MATERIALS FUND; AUGUST 17, 1998--CONSUMER PRODUCTS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 49
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------------------------
LEISURE FUND RETAILING FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD..... $10.94 $11.16 $9.35 $13.18 $13.50 $10.01
-------------- ---------- --------- -------------- ---------- ---------
Net Investment Loss.................... (.09) (.14) (.12) (.09) (.33) (.15)
Net Realized and Unrealized Gains
(Losses) on Securities............... (.80) .02 1.93 (2.61) .12 3.64
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations...... (.89) (.12) 1.81 (2.70) (.21) 3.49
Distributions to Shareholders from Net
Realized Capital Gains............... -- (.10) -- -- (.11) --
-------------- ---------- --------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................ (.89) (.22) 1.81 (2.70) (.32) 3.49
-------------- ---------- --------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD........... $10.05 $10.94 $11.16 $10.48 $13.18 $13.50
============== ========== ========= ============== ========== =========
TOTAL INVESTMENT RETURN.................. (8.14)% (1.06)% 19.36% (20.49)% (1.52)% 34.87%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses......................... 2.06%** 2.08% 2.23%** 2.12%** 2.10% 1.95%**
Net Expenses........................... 2.06%** 2.08% 2.22%** 2.12%** 2.09% 1.94%**
Net Investment Loss.................... (1.79)%** (1.32%) (1.95)%** (1.66)%** (2.69)% (1.37)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***............. 1,154% 5,734% 5,581% 1,214% 2,537% 3,243%
Net Assets, End of Period (000's
omitted)............................. $70 $18,559 $8 $49,994 $91,740 $337
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: JUNE 3, 1998--LEISURE
FUND; APRIL 21, 1998--RETAILING FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 50
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND TRANSPORTATION FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF
PERIOD............................. $20.13 $12.91 $10.00 $6.16 $7.95 $9.26
------------- --------- --------- ------------- --------- ---------
Net Investment Loss................ (.12) (.19) (.03) (.01) -- (.10)
Net Realized and Unrealized Gains
(Losses) on Securities........... (5.05) 7.42 2.94 (.49) (1.79) (1.21)
------------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net
Asset Value Resulting from
Operations....................... (5.17) 7.23 2.91 (.50) (1.79) (1.31)
Distributions to Shareholders from
Net Realized Capital Gains....... -- (.01) -- -- -- --
------------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net
Asset Value...................... (5.17) 7.22 2.91 (.50) (1.79) (1.31)
------------- --------- --------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD....... $14.96 $20.13 $12.91 $5.66 $6.16 $7.95
============= ========= ========= ============= ========= =========
TOTAL INVESTMENT RETURN.............. (25.68)% 55.98% 29.10% (8.12)% (22.52)% (14.15)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses..................... 1.62%** 2.05% 2.35%** 2.09%** 1.34% 2.08%**
Net Expenses....................... 1.62%** 2.05% 2.34%** 2.09%** 1.33% 2.07%**
Net Investment Loss................ (1.31)%** (1.14)% (0.27)%** (0.44)%** (0.08)% (1.38)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***......... 519% 1,555% 2,788% 697% 1,970% 7,583%
Net Assets, End of Period (000's
omitted)......................... $3,594 $3,449 $1,929 $65 $87,189 $4
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1,
1998--TELECOMMUNICATIONS FUND; JUNE 9, 1998--TRANSPORTATION
FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 51
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------------------------
ENERGY SERVICES FUND BANKING FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF
PERIOD.............................. $9.23 $6.01 $9.86 $7.24 $8.74 $10.00
------------- --------- --------- ------------- --------- ---------
Net Investment Income (Loss)........ (.06) (.11) (.09) .07 .01 .03
Net Realized and Unrealized Gains
(Losses) on Securities............ 1.13 3.33 (3.76) .58 (1.51) (1.29)
------------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset
Value Resulting from
Operations........................ 1.07 3.22 (3.85) .65 (1.50) (1.26)
Distributions to Shareholders....... -- -- -- -- -- --
------------- --------- --------- ------------- --------- ---------
Net Increase (Decrease) in Net Asset
Value............................. 1.07 3.22 (3.85) .65 (1.50) (1.26)
------------- --------- --------- ------------- --------- ---------
NET ASSET VALUE--END OF PERIOD........ $10.30 $9.23 $6.01 $7.89 $7.24 $8.74
============= ========= ========= ============= ========= =========
TOTAL INVESTMENT RETURN............... 11.59% 53.58% (39.05)% 8.98% (17.16)% (12.60)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses...................... 1.62%** 2.20% 2.05%** 1.62%** 2.06% 2.08%**
Net Expenses........................ 1.61%** 2.20% 2.04%** 1.61%** 2.05% 2.08%**
Net Investment Income (Loss)........ (1.12)%** (1.49)% (1.66)%** 2.01%** 0.07% 0.28%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***.......... 501% 1,794% 3,170% 893% 3,829% 11,211%
Net Assets, End of Period (000's
omitted).......................... $9,120 $34,524 $22,323 $7,695 $17,872 $2
</TABLE>
<TABLE>
<C> <S>
+ 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.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 52
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------------------------------------------
BIOTECHNOLOGY FUND ELECTRONICS FUND
---------------------------------------- ----------------------------------------
PERIOD YEAR PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31,
2000 2000 1999* 2000 2000 1999*
-------------- ---------- ---------- -------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD..... $28.46 $12.66 $10.00 $39.66 $13.96 $9.98
-------------- ---------- ---------- -------------- ---------- ---------
Net Investment Income (Loss)........... (.26) (.44) .18 (.33) (.35) (.23)
Net Realized and Unrealized Gains
(Losses) on Securities............... 5.97 16.28 2.48 (5.19) 26.05 4.21
-------------- ---------- ---------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value Resulting from Operations...... 5.71 15.84 2.66 (5.52) 25.70 3.98
Distributions to Shareholders from Net
Realized Capital Gains............... -- (.04) -- -- -- --
-------------- ---------- ---------- -------------- ---------- ---------
Net Increase (Decrease) in Net Asset
Value................................ 5.71 15.80 2.66 (5.52) 25.70 3.98
-------------- ---------- ---------- -------------- ---------- ---------
NET ASSET VALUE--END OF PERIOD........... $34.17 $28.46 $12.66 $34.14 $39.66 $13.96
============== ========== ========== ============== ========== =========
TOTAL INVESTMENT RETURN.................. 20.06% 125.34% 26.60% (13.92)% 184.10% 39.88%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses......................... 1.76%** 1.93% 2.16%** 1.87%** 1.76% 2.05%**
Net Expenses........................... 1.76%** 1.92% 2.16%** 1.86%** 1.75% 2.04%**
Net Investment Income (Loss)........... (1.71)%** (1.96)% 1.79%** (1.75)%** (1.51)% (1.86)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***............. 167% 699% 2,670% 416% 1,162% 3,011%
Net Assets, End of Period (000's
omitted)............................. $59,802 $45,757 $1,838 $21,839 $25,034 $4,024
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1,
1998--BIOTECHNOLOGY FUND; APRIL 2, 1998--ELECTRONICS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 53
<PAGE>
RYDEX SERIES FUNDS
FINANCIAL HIGHLIGHTS (CONCLUDED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR CLASS
--------------------------------
INTERNET FUND UTILITIES FUND
-------------- --------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000* 2000*
-------------- --------------
<S> <C> <C>
(UNAUDITED) (UNAUDITED)
PER SHARE OPERATING PERFORMANCE:+
NET ASSET VALUE--BEGINNING OF PERIOD........................ $10.00 $10.00
-------------- --------------
Net Investment Income (Loss).............................. (.08) .02
Net Realized and Unrealized Gains (Losses) on
Securities.............................................. (2.61) 1.95
-------------- --------------
Net Increase (Decrease) in Net Asset Value Resulting from
Operations.............................................. (2.69) 1.97
Distributions to Shareholders............................. -- --
-------------- --------------
Net Increase (Decrease) in Net Asset Value.................. (2.69) 1.97
-------------- --------------
NET ASSET VALUE--END OF PERIOD.............................. $7.31 $11.97
============== ==============
TOTAL INVESTMENT RETURN..................................... (26.90)% 19.70%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses............................................ 2.10%** 2.11%**
Net Expenses.............................................. 2.09%** 2.11%**
Net Investment Income (Loss).............................. (1.99)%** 0.46%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***................................ 971% 605%
Net Assets, End of Period (000's omitted)................. $16,400 $24,953
</TABLE>
<TABLE>
<C> <S>
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR
THE PERIOD.
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 6,
2000--INTERNET FUND; APRIL 3, 2000--UTILITIES FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO
SHORT-TERM SECURITIES HAVING A MATURITY OF LESS THAN ONE
YEAR.
</TABLE>
See Notes to Financial Statements. 54
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (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. At
September 30, 2000, the Trust consisted of twenty-nine separate series: eleven
benchmark funds, one money market fund, and seventeen sector funds. This report
covers the seventeen 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 is 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, if any, are valued at amortized cost, which approximates market
value. 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 trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using 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. 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 each Class. Certain costs, such as
distribution fees relating to the Advisor Classes, are charged directly to
specific classes.
55
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
E. Distributions to shareholders are recorded on the ex-dividend date.
Distributions from net investment income and net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for items such as deferral of wash sales and post-October
losses and regulated futures contracts and options. Net investment income and
loss, net realized gains and losses, and net assets were not affected by these
differences.
F. Each Sector Fund seeks capital appreciation and invests substantially all of
its assets in equity securities of companies involved in its sector. The Funds
may also purchase ADRs and U.S. Government securities, enter into repurchase
agreements, and engage in futures and options transactions. The risks inherent
in the use of futures and options include 1) adverse changes in the value of
such instruments; 2) imperfect correlation between the price of the instruments
and movements in the price of the underlying securities or index; and 3) the
possible absence of a liquid secondary market for any particular instrument at
any time.
G. 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 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. The collateral is in
the possession of the Trust's custodians and is evaluated daily to ensure that
its market value exceeds the delivery value of the repurchase agreements at
maturity.
The repurchase agreements that were executed and outstanding on September 30,
2000 are as follows:
<TABLE>
<CAPTION>
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE
------------ -------------------- ------------ ------------
<S> <C> <C> <C>
Lehman Brothers, Inc......................... 6.48% due 10/02/00 $107,454,581 $107,454,581
Salomon Smith Barney, Inc.................... 6.40% due 10/02/00 100,000,000 100,000,000
PaineWebber, Inc............................. 6.50% due 10/02/00 100,000,000 100,000,000
Fuji Securities, Inc......................... 6.48% due 10/02/00 82,186,058 82,186,058
------------
$389,640,639
============
</TABLE>
56
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
As of September 30, 2000, the collateral for the repurchase agreements in the
joint account was as follows:
<TABLE>
<CAPTION>
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
------------- -------------------- ------------ ------------
<S> <C> <C> <C>
U. S. Treasury Notes......................... 3.625%-7.875% $198,645,000 $201,518,994
U. S. Treasury Bonds......................... 3.875%-12.00% 150,349,000 188,769,107
------------
$390,288,101
============
</TABLE>
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays Rydex Global
Advisors, an affiliated entity, investment advisory fees calculated at an
annualized rate of eighty-five hundredths of one percent (0.85%) of the average
daily net assets of each of the Sector Funds, except the Precious Metals Fund,
which is three-quarters of one percent (0.75%) of the average daily net assets.
Certain officers and trustees of the Trust are also officers and directors of
Rydex Global Advisors.
PADCO Service Company, Inc., an affiliated entity, provides transfer agent
services to the Trust for fees calculated at an annualized rate of one quarter
of one percent (0.25%) of the average daily net assets of each of the Sector
Funds. Certain officers and trustees of the Trust are also officers and
directors of PADCO Service Company, Inc.
The Trust paid PADCO Service Company, Inc. $384,694 in accounting fees for the
Sector Funds for the period ended September 30, 2000.
The Trust has adopted a Distribution and Shareholder Services Plan applicable to
Advisor Class Shares, for which the Distributor, Rydex Distributors, 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, in turn,
will pay the Service Provider out of its fees. The Distributor may, at its
discretion, retain a portion of such payments to compensate itself for
distribution services. If a Service Provider provides shareholder 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, in
turn, will pay the Service Provider out of its fees. Certain officers and
trustees of the Trust are also officers and directors of Rydex
Distributors, Inc.
57
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4. ACCOUNTING FOR EXPENSES
The Trust has entered into an arrangement with its custodian whereby interest
earned on uninvested cash balances was used to offset a portion of the Trust's
expenses.
5. SECURITIES TRANSACTIONS
During the period ended September 30, 2000 purchases and sales of investment
securities, excluding short-term and temporary cash investments, were:
(Unaudited)
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Purchases................ $ 269,867,252 $1,128,077,003 $1,034,126,783 $1,182,027,985 $ 201,891,065
Sales.................... $ 241,341,023 $1,193,480,209 $ 932,597,213 $1,233,078,007 $ 215,565,646
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Purchases................ $ 359,773,372 $ 144,553,758 $ 562,362,372 $ 233,083,568 $ 246,242,948
Sales.................... $ 355,662,287 $ 164,132,191 $ 641,477,577 $ 264,751,979 $ 327,620,362
</TABLE>
<TABLE>
<CAPTION>
ENERGY PRECIOUS
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Purchases................ $ 477,149,427 $ 398,580,215 $1,157,089,989 $1,440,040,534 $ 203,877,574
Sales.................... $ 469,574,123 $ 392,378,275 $ 998,496,925 $1,403,039,193 $ 205,124,660
</TABLE>
<TABLE>
<CAPTION>
INTERNET UTILITIES
FUND FUND
-------------- --------------
<S> <C> <C> <C> <C> <C>
Purchases................ $ 257,388,818 $ 210,685,445
Sales.................... $ 231,440,756 $ 123,080,429
</TABLE>
58
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
6. NET UNREALIZED APPRECIATION (DEPRECIATION) OF SECURITIES
At September 30, 2000, unrealized appreciation (depreciation) and cost of
investment securities for Federal income tax purposes were: (Unaudited)
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation................ $ -- $ -- $ -- $ -- $ --
Gross Unrealized (Depreciation).............. (151,476) (2,830,464) (8,226,383) (20,667,379) (3,946,630)
-------------- -------------- -------------- -------------- --------------
Net Unrealized Depreciation.................. $ (151,476) $ (2,830,464) $ (8,226,383) $ (20,667,379) $ (3,946,630)
============== ============== ============== ============== ==============
Cost of Investments for Federal Income Tax
Purposes................................... $ 48,512,518 $ 214,036,858 $ 148,863,438 $ 57,889,365 $ 7,296,557
============== ============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation................ $ -- $ -- $ -- $ -- $ --
Gross Unrealized (Depreciation).............. (1,821,152) (1,175,669) (15,987,200) (5,926,730) (4,146,851)
-------------- -------------- -------------- -------------- --------------
Net Unrealized Depreciation.................. $ (1,821,152) $ (1,175,669) $ (15,987,200) $ (5,926,730) $ (4,146,851)
============== ============== ============== ============== ==============
Cost of Investments for Federal Income Tax
Purposes................................... $ 6,906,215 $ 2,284,692 $ 84,775,190 $ 25,317,506 $ 16,448,862
============== ============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
ENERGY PRECIOUS
SERVICES BANKING BIOTECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation................ $ 2,631,607 $ -- $ 157,635,581 $ 31,694,175 $ --
Gross Unrealized (Depreciation).............. -- (4,913,134) (2,420,631) (1,954,069) (22,265,658)
-------------- -------------- -------------- -------------- --------------
Net Unrealized Appreciation (Depreciation)... $ 2,631,607 $ (4,913,134) $ 155,214,950 $ 29,740,106 $(22,265,658)
============== ============== ============== ============== ==============
Cost of Investments for Federal Income Tax
Purposes................................... $ 82,003,519 $ 50,453,557 $ 594,415,244 $ 216,472,129 $ 52,322,398
============== ============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
INTERNET UTILITIES
FUND FUND
-------------- --------------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation................ $ 1,523,132 $ 5,466,834
Gross Unrealized (Depreciation).............. (1,497,183) (505,889)
-------------- --------------
Net Unrealized Appreciation.................. $ 25,949 $ 4,960,945
============== ==============
Cost of Investments for Federal Income Tax
Purposes................................... $ 19,249,928 $ 86,627,333
============== ==============
</TABLE>
59
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Funds are authorized to distribute an unlimited number of shares.
Transactions in shares for the period ended September 30, 2000 were: (Unaudited)
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................ 20,386,369 124,364,020 108,200,481 43,462,289 27,744,375
Shares Redeemed................. (19,872,489) (129,090,598) (106,094,108) (44,923,796) (29,466,452)
------------- ------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 513,880 (4,726,578) 2,106,373 (1,461,507) (1,722,077)
============= ============= ============= ============= =============
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 38,132,101 14,176,139 47,617,394 16,265,171
Shares Redeemed................. (38,636,314) (14,579,020) (51,923,588) (18,500,712)
------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... (504,213) (402,881) (4,306,194) (2,235,541)
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
ENERGY BIO-
TRANSPORTATION SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND FUND FUND
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased................ 23,916,510 63,384,258 53,745,875 57,727,973 53,701,058
Shares Redeemed................. (24,778,953) (61,876,189) (54,410,952) (53,509,978) (54,024,607)
------------- ------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... (862,443) 1,508,069 (665,077) 4,217,995 (323,549)
============= ============= ============= ============= =============
<CAPTION>
PRECIOUS
METALS INTERNET UTILITIES
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 28,694,862 26,202,566 18,269,741
Shares Redeemed................. (36,991,442) (25,754,669) (12,746,502)
------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... (8,296,580) 447,897 5,523,239
============= ============= =============
</TABLE>
ADVISOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased................ 12,062,910 38,191,723 30,634,555 7,221,081 7,227,126
Shares Redeemed................. (10,304,825) (43,497,757) (23,962,477) (8,145,744) (7,698,175)
------------- ------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 1,758,085 (5,306,034) 6,672,078 (924,663) (471,049)
============= ============= ============= ============= =============
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 17,533,402 3,229,079 18,726,870 3,691,401
Shares Redeemed................. (17,928,559) (4,918,535) (20,916,911) (3,622,498)
------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... (395,157) (1,689,456) (2,190,041) 68,903
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
ENERGY BIO-
TRANSPORTATION SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND FUND FUND
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased................ 29,473,543 23,479,118 33,047,434 9,824,586 10,637,013
Shares Redeemed................. (43,613,922) (26,333,646) (34,540,747) (9,681,912) (10,628,525)
------------- ------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... (14,140,379) (2,854,528) (1,493,313) 142,674 8,488
============= ============= ============= ============= =============
<CAPTION>
INTERNET UTILITIES
FUND FUND
------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 15,979,256 7,208,848
Shares Redeemed................. (13,736,329) (5,124,944)
------------- -------------
Net Shares Purchased
(Redeemed).................... 2,242,927 2,083,904
============= =============
</TABLE>
60
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions in shares for the year ended March 31, 2000 were:
INVESTOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH
ENERGY SERVICES CARE TECHNOLOGY
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 37,086,231 135,595,843 92,165,902 218,223,409
Purchased through Dividend
Reinvestment.................. -- 8,140 1,198 --
------------- ------------- ------------- -------------
Total Purchased................. 37,086,231 135,603,983 92,167,100 218,223,409
Shares Redeemed................. (37,739,352) (122,474,988) (90,393,124) (216,807,742)
------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... (653,121) 13,128,995 1,773,976 1,415,667
============= ============= ============= =============
<CAPTION>
BASIC CONSUMER
MATERIALS PRODUCTS LEISURE
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 70,265,243 17,516,286 21,272,970
Purchased through Dividend
Reinvestment.................. -- 4,604 2,346
------------- ------------- -------------
Total Purchased................. 70,265,243 17,520,890 21,275,316
Shares Redeemed................. (68,431,847) (16,438,554) (21,201,952)
------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 1,833,396 1,082,336 73,364
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
TELECOM- ENERGY
RETAILING MUNICATIONS TRANSPORTATION SERVICES
FUND FUND FUND FUND
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 62,752,393 54,375,652 42,495,268 161,342,833
Purchased through Dividend
Reinvestment.................. 3,929 1,178 -- --
------------- ------------- ------------- -------------
Total Purchased................. 62,756,322 54,376,830 42,495,268 161,342,833
Shares Redeemed................. (59,959,127) (52,040,471) (39,907,272) (167,799,145)
------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 2,797,195 2,336,359 2,587,996 (6,456,312)
============= ============= ============= =============
<CAPTION>
BIO- PRECIOUS
BANKING TECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 72,159,617 104,199,277 71,193,538 171,423,400
Purchased through Dividend
Reinvestment.................. -- 5,772 -- --
------------- ------------- ------------- -------------
Total Purchased................. 72,159,617 104,205,049 71,193,538 171,423,400
Shares Redeemed................. (67,645,236) (91,384,381) (65,260,403) (167,783,091)
------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 4,514,381 12,820,668 5,933,135 3,640,309
============= ============= ============= =============
</TABLE>
ADVISOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH
ENERGY SERVICES CARE TECHNOLOGY
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 4,318,626 40,787,735 19,022,831 44,245,767
Purchased through Dividend
Reinvestment.................. -- 9,092 188 --
------------- ------------- ------------- -------------
Total Purchased................. 4,318,626 40,796,827 19,023,019 44,245,767
Shares Redeemed................. (3,977,401) (29,174,926) (18,853,118) (43,337,079)
------------- ------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 341,225 11,621,901 169,901 908,688
============= ============= ============= =============
<CAPTION>
BASIC CONSUMER
MATERIALS PRODUCTS LEISURE
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 6,675,880 15,552,265 10,405,706
Purchased through Dividend
Reinvestment.................. -- 79,687 1,913
------------- ------------- -------------
Total Purchased................. 6,675,880 15,631,952 10,407,619
Shares Redeemed................. (6,123,920) (17,372,881) (8,712,000)
------------- ------------- -------------
Net Shares Purchased
(Redeemed).................... 551,960 (1,740,929) 1,695,619
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
TELECOM- ENERGY
RETAILING MUNICATIONS TRANSPORTATION SERVICES
FUND FUND FUND FUND
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 18,040,945 28,852,932 19,171,837 36,933,011
Purchased through Dividend
Reinvestment.................. 2,722 180 -- --
------------- ------------- ------------- -------------
Total Purchased................. 18,043,667 28,853,112 19,171,837 36,933,011
Shares Redeemed................. (11,108,125) (28,831,128) (5,020,598) (36,908,776)
------------- ------------- ------------- -------------
Net Shares Purchased............ 6,935,542 21,984 14,151,239 24,235
============= ============= ============= =============
<CAPTION>
BIO-
BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ 26,461,063 46,912,665 33,552,489
Purchased through Dividend
Reinvestment.................. -- 366 --
------------- ------------- -------------
Total Purchased................. 26,461,063 46,913,031 33,552,489
Shares Redeemed................. (23,992,548) (45,450,559) (33,209,557)
------------- ------------- -------------
Net Shares Purchased............ 2,468,515 1,462,472 342,932
============= ============= =============
</TABLE>
61
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions in dollars for the period ended September 30, 2000 were:
(Unaudited)
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................ $ 238,464,366 $ 1,245,597,774 $ 1,224,907,757 $ 1,227,824,457 $ 205,445,356
Shares Redeemed................. (230,812,263) (1,275,151,794) (1,196,521,839) (1,255,464,632) (216,469,239)
--------------- --------------- --------------- --------------- ---------------
Net Change...................... $ 7,652,103 $ (29,554,020) $ 28,385,918 $ (27,640,175) $ (11,023,883)
=============== =============== =============== =============== ===============
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 295,621,203 $ 151,054,368 $ 558,920,126 $ 303,435,413
Shares Redeemed................. (291,407,217) (154,396,549) (612,991,812) (339,321,223)
--------------- --------------- --------------- ---------------
Net Change...................... $ 4,213,986 $ (3,342,181) $ (54,071,686) $ (35,885,810)
=============== =============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
ENERGY BIO-
TRANSPORTATION SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Shares Purchased................ $ 149,265,410 $ 626,679,314 $ 403,712,551 $ 1,780,833,291 $ 2,068,702,344
Shares Redeemed................. (154,101,775) (598,109,078) (400,553,274) (1,620,819,774) (2,047,644,721)
--------------- --------------- --------------- --------------- ---------------
Net Change...................... $ (4,836,365) $ 28,570,236 $ 3,159,277 $ 160,013,517 $ 21,057,623
=============== =============== =============== =============== ===============
<CAPTION>
PRECIOUS
METALS INTERNET UTILITIES
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 418,601,154 $ 217,046,700 $ 203,171,009
Shares Redeemed................. (419,509,935) (208,224,500) (138,821,168)
--------------- --------------- ---------------
Net Change...................... $ (908,781) $ 8,822,200 $ 64,349,841
=============== =============== ===============
</TABLE>
ADVISOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased................ $ 142,550,118 $ 380,886,260 $ 343,912,317 $ 202,256,115 $ 53,767,921
Shares Redeemed................. (121,439,688) (417,210,792) (267,135,137) (226,770,125) (56,980,322)
------------- ------------- ------------- ------------- -------------
Net Change...................... $ 21,110,430 $ (36,324,532) $ 76,777,180 $ (24,514,010) $ (3,212,401)
============= ============= ============= ============= =============
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 134,323,728 $ 33,559,857 $ 212,022,259 $ 68,416,957
Shares Redeemed................. (134,710,582) (50,157,237) (238,156,648) (65,305,005)
------------- ------------- ------------- -------------
Net Change...................... $ (386,854) $ (16,597,380) $ (26,134,389) $ 3,111,952
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
ENERGY BIO-
TRANSPORTATION SERVICES BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND FUND FUND
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Shares Purchased................ $ 183,463,833 $ 227,038,549 $ 245,874,983 $ 302,663,629 $ 414,287,208
Shares Redeemed................. (261,189,724) (248,072,014) (244,131,762) (289,762,088) (397,240,784)
------------- ------------- ------------- ------------- -------------
Net Change...................... $ (77,725,891) $ (21,033,465) $ 1,743,221 $ 12,901,541 $ 17,046,424
============= ============= ============= ============= =============
<CAPTION>
INTERNET UTILITIES
FUND FUND
------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 128,529,461 $ 79,644,274
Shares Redeemed................. (110,736,395) (56,455,862)
------------- -------------
Net Change...................... $ 17,793,066 $ 23,188,412
============= =============
</TABLE>
62
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions in dollars for the year ended March 31, 2000 were:
INVESTOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH
ENERGY SERVICES CARE TECHNOLOGY
FUND FUND FUND FUND
------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C>
Shares Purchased.... $ 374,159,027 $ 1,305,737,326 $ 965,053,318 $ 4,828,884,170
Purchased through
Dividend
Reinvestment...... -- 79,309 12,715 --
------------- --------------- ------------- ---------------
Total Purchased..... 374,159,027 1,305,816,635 965,066,033 4,828,884,170
Shares Redeemed..... (377,234,768) (1,172,219,237) (946,175,002) (4,808,166,600)
------------- --------------- ------------- ---------------
Net Change.......... $ (3,075,741) $ 133,597,398 $ 18,891,031 $ 20,717,570
============= =============== ============= ===============
<CAPTION>
BASIC CONSUMER
MATERIALS PRODUCTS LEISURE
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased.... $ 637,733,841 $ 154,432,875 $ 232,663,291
Purchased through
Dividend
Reinvestment...... -- 42,676 24,591
------------- ------------- -------------
Total Purchased..... 637,733,841 154,475,551 232,687,882
Shares Redeemed..... (620,774,859) (145,647,165) (231,143,075)
------------- ------------- -------------
Net Change.......... $ 16,958,982 $ 8,828,386 $ 1,544,807
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
TELECOM- ENERGY
RETAILING MUNICATIONS TRANSPORTATION SERVICES
FUND FUND FUND FUND
------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
Shares Purchased.... $ 808,947,665 $ 864,398,077 $ 322,027,110 $ 1,142,611,280
Purchased through
Dividend
Reinvestment...... 48,873 19,842 -- --
------------- ------------- ------------- ---------------
Total Purchased..... 808,996,538 864,417,919 322,027,110 1,142,611,280
Shares Redeemed..... (772,499,152) (827,616,358) (306,057,194) (1,160,809,005)
------------- ------------- ------------- ---------------
Net Change.......... $ 36,497,386 $ 36,801,561 $ 15,969,916 $ (18,197,725)
============= ============= ============= ===============
<CAPTION>
BIO- PRECIOUS
BANKING TECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND
------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased.... $ 579,045,578 $ 2,388,242,730 $ 1,757,578,749 $ 788,390,455
Purchased through
Dividend
Reinvestment...... -- 94,092 -- --
------------- --------------- --------------- -------------
Total Purchased..... 579,045,578 2,388,336,822 1,757,578,749 788,390,455
Shares Redeemed..... (543,830,769) (2,007,703,924) (1,589,923,739) (760,182,712)
------------- --------------- --------------- -------------
Net Change.......... $ 35,214,809 $ 380,632,898 $ 167,655,010 $ 28,207,743
============= =============== =============== =============
</TABLE>
63
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ADVISOR CLASS:
<TABLE>
<CAPTION>
FINANCIAL HEALTH
ENERGY SERVICES CARE TECHNOLOGY
FUND FUND FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 44,222,102 $ 379,668,024 $ 194,121,965 $ 968,612,178
Purchased through Dividend
Reinvestment.................. -- 88,193 1,977 --
------------- ------------- ------------- -------------
Total Purchased................. 44,222,102 379,756,217 194,123,942 968,612,178
Shares Redeemed................. (40,612,813) (266,466,894) (189,203,889) (952,729,429)
------------- ------------- ------------- -------------
Net Change...................... $ 3,609,289 $ 113,289,323 $ 4,920,053 $ 15,882,749
============= ============= ============= =============
<CAPTION>
BASIC CONSUMER
MATERIALS PRODUCTS LEISURE
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 60,977,958 $ 135,834,992 $ 116,337,582
Purchased through Dividend
Reinvestment.................. -- 738,696 19,785
------------- ------------- -------------
Total Purchased................. 60,977,958 136,573,688 116,357,367
Shares Redeemed................. (55,843,573) (150,735,826) (94,273,900)
------------- ------------- -------------
Net Change...................... $ 5,134,385 $ (14,162,138) $ 22,083,467
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
TELECOM- ENERGY
RETAILING MUNICATIONS TRANSPORTATION SERVICES
FUND FUND FUND FUND
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 228,512,867 $ 459,121,497 $ 120,860,199 $ 269,901,263
Purchased through Dividend
Reinvestment.................. 33,785 2,989 -- --
------------- ------------- ------------- -------------
Total Purchased................. 228,546,652 459,124,486 120,860,199 269,901,263
Shares Redeemed................. (139,661,059) (475,718,738) (33,685,933) (260,260,834)
------------- ------------- ------------- -------------
Net Change...................... $ 88,885,593 $ (16,594,252) $ 87,174,266 $ 9,640,429
============= ============= ============= =============
<CAPTION>
BIO-
BANKING TECHNOLOGY ELECTRONICS
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares Purchased................ $ 214,513,223 $ 902,518,655 $ 744,677,976
Purchased through Dividend
Reinvestment.................. -- 5,890 --
------------- ------------- -------------
Total Purchased................. 214,513,223 902,524,545 744,677,976
Shares Redeemed................. (191,598,044) (899,438,342) (760,551,872)
------------- ------------- -------------
Net Change...................... $ 22,915,179 $ 3,086,203 $ (15,873,896)
============= ============= =============
</TABLE>
64
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
8. NET ASSETS
At September 30, 2000, net assets consisted of: (Unaudited)
<TABLE>
<CAPTION>
FINANCIAL HEALTH BASIC
ENERGY SERVICES CARE TECHNOLOGY MATERIALS
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital........................ $ 49,470,312 $ 227,720,426 $ 146,978,285 $ 58,955,481 $ 13,967,979
Undistributed Net Investment Income
(Loss)............................... (115,420) 384,897 (493,933) (461,687) 59,138
Accumulated Net Realized Loss on
Investments.......................... (5,942,681) (45,220,409) (14,072,047) (37,905,850) (10,738,738)
Net Unrealized Appreciation on
Investments.......................... 4,865,750 29,139,730 11,072,572 16,402,708 115,183
------------- ------------- ------------- ------------- -------------
Net Assets............................. $ 48,277,961 $ 212,024,644 $ 143,484,877 $ 36,990,652 $ 3,403,562
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
CONSUMER TELECOM-
PRODUCTS LEISURE RETAILING MUNICATIONS TRANSPORTATION
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital........................ $ 20,432,666 $ 8,907,077 $ 94,704,588 $ 21,446,590 $ 25,941,978
Undistributed Net Investment Income
(Loss)............................... 113,560 (103,314) (264,780) (173,264) (100,347)
Accumulated Net Realized Loss on
Investments.......................... (15,508,610) (7,925,289) (25,833,096) (8,953,703) (14,578,619)
Net Unrealized Appreciation on
Investments.......................... 127,754 200,142 779,812 7,155,930 1,096,333
------------- ------------- ------------- ------------- -------------
Net Assets............................. $ 5,165,370 $ 1,078,616 $ 69,386,524 $ 19,475,553 $ 12,359,345
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
ENERGY BIO- PRECIOUS
SERVICES BANKING TECHNOLOGY ELECTRONICS METALS
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital........................ $ 108,271,203 $ 73,510,644 $ 604,737,613 $ 227,950,585 $ 98,600,013
Undistributed Net Investment Income
(Loss)............................... (121,934) 652,676 (3,936,058) (2,105,562) 1,630
Accumulated Net Realized Loss on
Investments.......................... (48,052,473) (35,663,962) (139,945,969) (66,730,741) (69,703,013)
Net Unrealized Appreciation on
Investments.......................... 25,773,964 7,057,893 294,508,805 88,447,910 1,457,790
------------- ------------- ------------- ------------- -------------
Net Assets............................. $ 85,870,760 $ 45,557,251 $ 755,364,391 $ 247,562,192 $ 30,356,420
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
INTERNET UTILITIES
FUND FUND
----------- -----------
<S> <C> <C> <C> <C> <C>
Paid-In-Capital........................ $26,615,266 $87,538,253
Undistributed Net Investment Income
(Loss)............................... (276,739) 78,649
Accumulated Net Realized Loss on
Investments.......................... (8,000,415) (3,229,899)
Net Unrealized Appreciation on
Investments.......................... 1,328,230 6,726,477
----------- -----------
Net Assets............................. $19,666,342 $91,113,480
=========== ===========
</TABLE>
65
<PAGE>
RYDEX SERIES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9. LOSS CARRYFORWARD - FEDERAL INCOME TAX
At March 31, 2000, for Federal income tax purposes, the following sector 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>
FINANCIAL CONSUMER
ENERGY SERVICES PRODUCTS LEISURE
EXPIRES MARCH 31 FUND FUND FUND FUND
---------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
2004................................... $ -- $ -- $ -- $ --
2005................................... -- -- -- --
2006................................... -- -- -- --
2007................................... -- -- -- --
2008................................... 1,381,425 922,016 3,149,176 189,716
<CAPTION>
ENERGY PRECIOUS
TRANSPORTATION SERVICES BANKING METALS
EXPIRES MARCH 31 FUND FUND FUND FUND
---------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
2004................................... $ -- $ -- $ -- $ 4,249,968
2005................................... -- -- -- 709,440
2006................................... -- -- -- 6,318,198
2007................................... -- 364,446 -- 5,630,309
2008................................... 1,496,274 7,012,158 1,605,231 11,740,001
</TABLE>
10. PRECIOUS METALS REVERSE STOCK SPLIT
Effective after the close of business on April 14, 2000, the Precious Metals
Fund, Investor Class shares, underwent a 1-for-5 reverse split. The effect of
this transaction was to divide the number of outstanding shares in this Fund by
five, while multiplying the net asset value per share by five. The net asset
value per share prior to the reverse split was $3.88; after the reverse split,
the net asset value per share was $19.40.
There was no change in the aggregate market value of the outstanding shares as a
result of this transaction.
66
<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
PRECIOUS METALS FUND
INTERNET FUND
UTILITIES 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 FUNDS
9601 Blackwell Road, Suite 500
Rockville, MD 20850
(800) 820-0888
www.rydexfunds.com
ADVISOR CLASS SHARES ARE DISTRIBUTED BY
RYDEX DISTRIBUTORS, INC.
RFSSA-3-11/00
