-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A0c4nZPVoRyS1h0BhO+1EFP39lNA4dHcesivQEhmkHo5OcQ2t5zbddKDmV36gn35 V2XiRUorh1PkdrYjbd/qaQ== 0000950144-02-013088.txt : 20021230 0000950144-02-013088.hdr.sgml : 20021230 20021230104819 ACCESSION NUMBER: 0000950144-02-013088 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021031 FILED AS OF DATE: 20021230 EFFECTIVENESS DATE: 20021230 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDEX MUTUAL FDS CENTRAL INDEX KEY: 0000787623 IRS NUMBER: 592649014 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04556 FILM NUMBER: 02871054 BUSINESS ADDRESS: STREET 1: 570 CARILLON PARKWAY CITY: ST PETERSBURG STATE: FL ZIP: 33716 BUSINESS PHONE: 727-299-1800 MAIL ADDRESS: STREET 1: P.O. BOX 9015 CITY: CLEARWATER STATE: FL ZIP: 33758-9015 FORMER COMPANY: FORMER CONFORMED NAME: IDEX SERIES FUND DATE OF NAME CHANGE: 19960924 FORMER COMPANY: FORMER CONFORMED NAME: IDEX II SERIES FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: IDEX MUTUAL FUNDS / DATE OF NAME CHANGE: 20010423 N-30D 1 g78830nv30d.txt IDEX MUTUAL FUNDS ANNUAL REPORT OCTOBER 31, 2002 IDEX Mutual Funds - - - - - - - - - - - - - - - - - - www.idexfunds.com IDEX Mutual Funds IDEX Mutual Funds Annual Report October 31, 2002 [IDEX LOGO] Customer Service: 1-888-233-IDEX (4339) www.idexfunds.com Distributor: AFSG Securities Corporation P.O. Box 9015 Clearwater, FL 33758-9015 TABLE OF CONTENTS
FUND MANAGERS' COMMENTARY, COMMENTARY/ SCHEDULE FUND PERFORMANCE, STATISTICS AND PERFORMANCE/ OF SCHEDULE OF INVESTMENTS STATISTICS INVESTMENTS - -------------------------------- ------------ ----------- - -Preface to the Schedule of Investments 78 - -IDEX Aggressive Asset Allocation 2 80 - -IDEX Alger Aggressive Growth 4 81 - -IDEX American Century Income & Growth (merged with IDEX GE U.S. Equity) 6 82 - -IDEX American Century International (merged with IDEX International Equity) 8 85 - -IDEX Conservative Asset Allocation 10 87 - -IDEX Federated Tax Exempt 12 88 - -IDEX Gabelli Global Growth 14 90 - -IDEX Goldman Sachs Growth 16 93 - -IDEX Great Companies - America(SM) 18 95 - -IDEX Great Companies - Global(2) 20 96 - -IDEX Great Companies - Technology(SM) 22 97 - -IDEX Isabelle Small Cap Value 24 98 - -IDEX Janus Balanced 26 99 - -IDEX Janus Capital Appreciation 28 102 - -IDEX Janus Flexible Income 30 104 - -IDEX Janus Global 32 107 - -IDEX Janus Growth 34 109 - -IDEX Janus Growth & Income 36 110 - -IDEX Jennison Equity Opportunity 38 112 - -IDEX LKCM Strategic Total Return 40 113 - -IDEX Moderate Asset Allocation 42 115 - -IDEX Moderately Aggressive Asset Allocation 44 116 - -IDEX Munder Net50 46 117 - -IDEX PBHG Mid Cap Growth (formerly IDEX Pilgrim Baxter Mid Cap Growth) 48 118 - -IDEX PBHG Technology & Communications (formerly IDEX Pilgrim Baxter Technology) 50 119 - -IDEX PIMCO Total Return 52 120 - -IDEX Protected Principal Stock 54 124 - -IDEX Salomon All Cap 56 129 - -IDEX Salomon Investors Value (formerly IDEX NWQ Value Equity) 58 130 - -IDEX T. Rowe Price Health Sciences 60 132 - -IDEX T. Rowe Price Small Cap 62 134 - -IDEX T. Rowe Price Tax-Efficient Growth (formerly IDEX T. Rowe Price Dividend Growth) 64 137 - -IDEX Transamerica Conservative High-Yield Bond (formerly IDEX AEGON Income Plus) 66 139 - -IDEX Transamerica Convertible Securities 68 141 - -IDEX Transamerica Equity 70 143 - -IDEX Transamerica Growth Opportunities (formerly IDEX Transamerica Small Company) 72 144 - -IDEX Transamerica Money Market 74 145 - -IDEX Transamerica Value Balanced 76 147 FINANCIAL STATEMENTS - -Preface to the Financial Statements 150 - -Statements of Assets and Liabilities 152 - -Statements of Operations 160 - -Statements of Changes in Net Assets 168 - -Financial Highlights 180 NOTES TO FINANCIAL STATEMENTS 204 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 216 RESULTS OF SHAREHOLDER PROXY VOTING 217 SUPPLEMENTAL FEDERAL INCOME TAX INFORMATION 242 MANAGEMENT OF THE FUND 243
[PHOTO] JOHN R. KENNEY Chairman of the Board [PHOTO] BRIAN C. SCOTT President and Chief Executive Officer TO OUR SHAREHOLDERS, Investing in the financial markets is a balance between risk and reward. During the past 12 months, it's safe to say, the scales clearly tipped in favor of risk. That's because the world became a very different place during the past 12 months. Terrorism, a tragic fact of life in many nations, has reached U.S. soil. An economic recovery seems to be sputtering, raising fears of a "double-dip" recession. And the possibility of war with Iraq grows each day. And 12 months ago, no one could have imagined that corporate executives paraded in handcuffs would be a common sight on CNN. As shareholders, these events made us question our investing strategies and our faith in the financial markets. But after a hard, unflinching look at the past year's events, we realized that we've been here before. We are simply in the midst of a cycle. And, as the word implies, things will turn around. Indeed, even as we write, the scandals that shook investor confidence are purging the corporate world of dangerous excesses. Ultimately, this will result in better scrutiny of financial information - the information investors need to make sound decisions. Also, the impasse over Iraq will be resolved somehow, ending a disturbing uncertainty. And, by most lights, the economy is emerging from its slump - when it will hit its stride, we don't know, but we believe it's inevitable. In companies throughout the United States and the world, ingenuity is at work to create new products, capture greater markets and generate the profits that will make them worthwhile investments. The managers of IDEX Mutual Funds are looking for those companies. They'll be there when ideas and hard work result in earnings. Will you be there? Without a doubt it's difficult to stay the course when it seems everyone else is jumping off. But buying low means taking a risk while others seek safety. Taking such a risk often leads to rewards that others will miss. These are uncertain times, but uncertainty brings opportunity. Your financial professional can help you keep risk and reward in perspective. He or she can offer objective guidance that looks beyond today and toward a better tomorrow. After all, taking steps today in the hope of a rewarding future is what investing is all about. Sincerely yours, /s/ John R. Kenney /s/ Brian C. Scott John R. Kenney Brian C. Scott Chairman of the Board President and Chief Executive Officer IDEX AGGRESSIVE ASSET ALLOCATION OBJECTIVE/FOCUS Long-term growth of capital through investments in a combination of underlying IDEX funds. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT At best, the past twelve months have been difficult for investors. For equity investors, the third quarter of 2002 was downright painful. Yet those suited to IDEX Aggressive Asset Allocation can wait out this storm and view this as a time to buy low. The fund began operations March 1, 2002, well into the period, which was marked by the nation's efforts to recover from the tragedy of September 11th, a subsequent plunge in equity markets, and an unprecedented series of steps by the Federal Reserve Board ("FED") to put capital into the sputtering economy. For a time, the Fed's medicine seemed to work. The markets staged a brief rally, consumer confidence remained high, the employment situation stabilized and manufacturing picked up. The signs pointed to better times ahead. Then the scandals emerged. Enron Corp. was only the beginning. Others, once Wall Street favorites, fell amid stories of shady accounting practices and abuses by executives. The result was a plunge in investor confidence that will take serious effort to reverse. Finally, the mounting tension between the United States and Iraq created a lingering uncertainty. And the markets hate uncertainty. Despite it all, however, the markets ended the period with a strong showing in October, ending the downward slide of a brutal third quarter. PERFORMANCE From inception March 1, 2002 through October 31, 2002, IDEX Aggressive Asset Allocation returned (20.50)% as compared to its benchmark, the Wilshire 5000 Total Market Index, which returned (19.12)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW IDEX Aggressive Asset Allocation is a "fund of funds" that seeks long-term capital appreciation. It is designed for growth, and its model, based on recommendations from Morningstar Associates, aims for a target of 100% equities. Risk management is an important part of the equation, however, and the fund's weightings reflect a defensive stance in response to the current bear market. The fund's largest single holding was IDEX Salomon Investors Value. Since April 30, 2002 weighting in that fund increased from 6.6% to 22.8% of net assets. IDEX Transamerica Equity, a fund with a relatively small number of carefully selected stocks, was the second-largest holding, accounting for 13.5% of net assets. Others well represented include IDEX Isabelle Small Cap Value (13.3% of net assets) and IDEX American Century International (7.7% of net assets). In all, IDEX Aggressive Asset Allocation comprises twelve underlying funds in every equity category from large-cap growth to small-cap value. OUTLOOK Cautious optimism is in order. The U.S. economy has shown remarkable resiliency. Valuations have become more reasonable than they were at the height of the dot.com bubble. And the scandals that emerged during the past twelve months have a silver lining: they forced corporations to clean up their accounting practices and present financial information that makes sense. Whether the market has reached a bottom and is emerging from its three-year slump remains to be seen. Yet whatever the market environment might bring in the year ahead, IDEX Aggressive Asset Allocation will continue to seek long-term growth opportunities. Fund Adviser AEGON/Transamerica Fund Advisers, Inc. 2 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. AGGRESSIVE An investment strategy characterized by a willingness to accept above-average risk in order to pursue above-average returns by investing primarily in stocks of rapidly growing companies. This strategy also includes sometimes buying on margin, options trading and arbitrages. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date ---------- ---------- Class A (NAV) (20.50)% 3/1/02 Class A (POP) (24.87)% 3/1/02 Wilshire 5000(1) (19.12)% 3/1/02 Class B (NAV) (20.90)% 3/1/02 Class B (POP) (24.86)% 3/1/02 Class C (NAV) (20.90)% 3/1/02 Class M (NAV) (20.90)% 3/1/02 Class M (POP) (22.47)% 3/1/02
NOTES 1 The Wilshire 5000 Total Market Index (Wilshire 5000) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) ALLOCATIONS (% OF NET ASSETS) - ---------------------------------------------- ----------------------------- IDEX Salomon Investors Value 22.8% Aggressive 48.9% IDEX Transamerica Equity 13.5% Conservative 29.8% IDEX Isabelle Small Cap Value 13.3% International 17.4% IDEX American Century International 7.7% IDEX Great Companies - America(SM) 7.0%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 3 ANNUAL REPORT 2002 IDEX ALGER AGGRESSIVE GROWTH OBJECTIVE/FOCUS Long-term capital appreciation through investments in domestic equities of developing companies or companies with promising growth potential. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The fiscal year ended October 31, 2002, was an extraordinarily difficult period for equity securities. At the start of the period, the market succeeded in capitalizing on positive stock movement during an October rally. Fueled in part by a 50 basis point rate cut on November 6, 2001 and another 25 basis point cut on December 11, 2001 stocks moved higher in the last two months of 2001. The NASDAQ closed the year 2001 37% above its September 21, 2001 low, and equity markets seemed to be headed towards the New Year with strong momentum. The first quarter of 2002 brought an abrupt end to the momentum experienced in the last few months of 2001. After slashing interest rates in dramatic fashion throughout 2001, the Federal Reserve Board ("FED") failed to cut the Fed funds rate any further during the quarter. Furthermore, the Enron Corp. affair and continued violence in Afghanistan and the Middle East cast a pall over the markets at a time when other news should have led to a modest rally. The second quarter of 2002 brought more suffering. Despite a steady stream of economic data indicating growth in the U.S. economy and a recovery of corporate profits, the market continued to drop on news of further corporate malfeasance. Furthermore, while the Fed continued to maintain interest rates at historically low levels, the absence of further rate cuts provided no impetus for renewed investor optimism. The downward spiral continued throughout the third quarter. Unsettled by negative earnings preannouncements, weaker consumer confidence and disappointing job growth, investors found little reason to buy. Furthermore, concern over a possible war with Iraq and unresolved corporate accounting scandals helped to exacerbate the selling. Despite the steep decline in stock prices, the Fed decided against any further rate cuts during the three month period. July, August and September saw the continued collapse of most equity indices. With the NASDAQ and Standard and Poor's 500 Composite Stock Index reaching six- and five-year lows, respectively, by the end of the third quarter, October brought some much-needed relief from all the selling. Led by large cap growth stocks, the markets moved higher on a batch of surprisingly good earnings reports from bellwethers like Citigroup, Inc., International Business Machines Corporation and General Motors Corporation. Nevertheless, with the exact timing of a market bottom still unclear, investors continued to feel the effects of the post- bubble correction. PERFORMANCE For the year ended October 31, 2002, IDEX Alger Aggressive Growth returned (24.44)% as compared to its benchmark the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW IDEX Alger Aggressive Growth benefited from an underweighting in the weak telecommunications services sector, but was hurt by poor-performing technology stocks. As of October 31, 2002, the fund held 67 stocks and had a cash position of just over 10%. Pharmaceuticals, Computer Services and Insurance represented the top three industries. The fund remains well diversified, with top holdings Microsoft Corporation, IDEC Pharmaceuticals Corporation, Gilead Sciences Inc., Pfizer Inc. and Affiliated Computer Services Inc. OUTLOOK We believe the market has bottomed and that this period represents an opportunity for aggressive buying. Our optimism is based on an analysis of the price of equities and their earnings yield compared with the yield on bonds. The market has been shedding the excess valuations of the late 1990s and we believe it has overshot on the downside. In general, capitalism is a process of creative destruction, and with every loss there is some gain. Though the paradigm of the 1990s growth company may be extinct, we are now identifying a new set of companies that will define growth in the period ahead. /s/ Frederick M. Alger - ------------------------------- FREDERICK M. ALGER /s/ David Hyun - ------------------------------- DAVID HYUN Co-Fund Managers Fred Alger Management, Inc. 4 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. AVERAGE ANNUAL TOTAL RETURN A hypothetical rate of return that, if achieved annually, would have produced the same cumulative total return if performance had been constant over the entire period. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------ ------ --------- --------- Class A (NAV) (24.44)% (0.57)% 9.37% 12/2/94 Class A (POP) (28.60)% (1.69)% 8.59% 12/2/94 S&P 500(1) (15.10)% 0.73% 10.66% 12/2/94 Class B (NAV) (25.11)% (1.21)% 1.42% 10/1/95 Class B (POP) (28.85)% (1.41)% 1.42% 10/1/95 Class C (NAV) (25.11)% -- (20.74)% 11/1/99 Class M (NAV) (25.02)% (1.12)% 8.88% 12/2/94 Class M (POP) (26.51)% (1.32)% 8.74% 12/2/94
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Microsoft Corporation 3.4% Pharmaceuticals 20.2% IDEC Pharmaceuticals Corporation 3.3% Computer & Data Processing Gilead Sciences, Inc. 3.0% Services 9.9% Pfizer Inc. 3.0% Insurance 5.7% Affiliated Computer Medical Instruments & Supplies 5.4% Services, Inc. - Class A 3.0% Commercial Banks 4.5%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 5 ANNUAL REPORT 2002 IDEX AMERICAN CENTURY INCOME & GROWTH (FORMERLY IDEX GE U.S. EQUITY) OBJECTIVE/FOCUS Dividend growth, current income and capital appreciation by investing in common stocks. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The economic recovery continued for the first ten months of 2002. Manufacturing activity ramped up, companies rebuilt inventories, and productivity surged at the fastest pace in 30 years. Despite stronger economic growth, the Federal Reserve Board kept overnight lending rates at a 40 plus-year low of 1.75%, as low inflation gave the central bank more time to stimulate the economy. Consumer spending continued to support the economy, as mortgage refinancing and real wage gains helped buoy spending despite high levels of consumer debt. But confidence slipped late in the period, leading to some concern that spending would follow. Meanwhile, lackluster corporate profits and the uncertain economic environment continued to restrain business spending. PERFORMANCE For the year ended October 31, 2002, IDEX American Century Income & Growth ("Income & Growth") returned (14.15)% as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for additional information. STRATEGY REVIEW Financial stocks fell, pulled lower by weak financial markets and exposure to bad loans. There were several good stories to tell for Income & Growth's financial stocks. First, Income & Growth outperformed the benchmark in the property & casualty industry. That was because the portfolio held overweights in several solid mid-cap performers. Stock selection was also solid among regional and national banks. The portfolio also held its value relatively well in the beleaguered securities and asset management industry. That's because the management team found a couple of stocks that bucked the industry's negative performance, while simultaneously avoiding the worst performers. Health care stocks slid, as concerns over patent expiration, slim research and development pipelines, and slower pharmaceutical approval called into question the sector's relatively high valuations. That crushed pharmaceutical stocks, with biotechnology taking the worst beating. Income & Growth's valuation-conscious strategy minimized exposure to those industries while maximizing exposure to cheaper generic pharmaceutical companies and health maintenance organizations ("HMOs"). HMOs were one of the few bright spots in the healthcare sector - they've been raising premiums and earnings guidance. Those were favorable signs that were especially well received because of the lack of earnings growth elsewhere in the market. The management team experienced some difficulty selecting stocks in the electrical utility and chemicals industries. Despite dodging several bullets in the troubled utilities sector, a few stocks detracted from the portfolio, as did lack of exposure to the biggest chemical stocks. In addition, sector allocation - - modest overweights in utilities and telecommunications and a slight underweight in consumer non-cyclicals - eroded some of the fund's excess return. But the management team doesn't make big sector bets, so the fund still outperformed the index despite those allocations. OUTLOOK International events, weakness in corporate profits, and slower consumer and business spending could continue to drag on the economy. Stock valuations are pretty high by historical standards, which means the economy will probably have to pick up the pace to justify current share prices. The management team will continue to focus on building the portfolio based on analysis of individual companies. They will adhere to their structured, disciplined process instead of making big bets based on the uncertain economic environment. /s/ John C. Schniedwind - --------------------------------- JOHN C. SCHNIEDWIND /s/ Kurt C. Borgwardt - --------------------------------- KURT C. BORGWARDT Co-Fund Managers American Century Investment Management, Inc. NOTE: Effective February 28, 2002, GE Asset Management Incorporated resigned as sub-adviser for IDEX GE U.S. Equity. On March 1, 2002, IDEX American Century Income & Growth merged into IDEX GE U.S. Equity and the fund was renamed IDEX American Century Income& Growth. Effective March 1, 2002, American Century Investment Management, Inc. entered into a sub-advisory agreement on behalf of the fund to serve as sub-adviser. 6 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [CHART] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. PORTFOLIO OPTIMIZATION Building a portfolio in such a way that return is maximized for a given risk level, or risk is minimized for a given expected return level. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (14.15)% (9.98)% 3/1/00 Class A (POP) (18.87)% (11.87)% 3/1/00 S&P 500(1) (15.10)% (13.83)% 3/1/00 Class B (NAV) (14.76)% (10.61)% 3/1/00 Class B (POP) (19.02)% (11.62)% 3/1/00 Class C (NAV) (14.76)% (10.61)% 3/1/00 Class M (NAV) (14.68)% (10.52)% 3/1/00 Class M (POP) (16.38)% (10.86)% 3/1/00
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Bank of America Corporation 4.0% Commercial Banks 11.1% Citigroup Inc. 3.2% Pharmaceuticals 10.3% Microsoft Corporation 2.8% Telecommunications 7.6% Exxon Mobil Corporation 2.6% Petroleum Refining 5.5% General Electric Company 2.6% Insurance 4.9%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 7 ANNUAL REPORT 2002 IDEX AMERICAN CENTURY INTERNATIONAL (FORMERLY IDEX INTERNATIONAL EQUITY) OBJECTIVE/FOCUS Growth of capital through investments in stocks of growing foreign companies. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The global economy struggled during the past year. Corporate accounting scandals, weak growth in the U.S. economy, the threat of war in Iraq, and declining confidence among businesses and consumers all took a toll on international markets. While we have been through one of the most challenging periods for international investors, we are starting to see signs of recovery in certain cyclical areas of the economy. We believe they point to a global economy ready to rebound. PERFORMANCE For the year ended October 31, 2002, IDEX American Century International returned (16.49)% as compared to its benchmark, the Morgan Stanley Capital International (EAFE) Index, which returned (12.93)% for the same period. Please refer to the Performance Table on the next page for additional information. STRATEGY REVIEW In such a volatile period, companies that were well positioned to withstand economic uncertainty fared best, making the fund's consumer noncyclical sector one of the top relative performers and the only absolute contributor. Investors often gravitate toward such firms during tough times because consumers continue buying necessities during a slowdown. That tendency boosted two of IDEX American Century International's holdings, the United Kingdom's Reckitt Benckiser PLC and Diageo PLC, both of which advanced. Overall, food and beverage companies, registered one of the best performances against the index, thanks to an overweight position and superior stock selection. While consumers continued to buy staples, they slowed down purchases of discretionary items. As a result, holdings among consumer cyclicals, the fund's second-largest sector stake, declined. Sales of products ranging from clothes to computers lagged during the latter part of the year, which restrained the department store and consumer durables industries. The fund's slightly overweight position in the sector underperformed the index. The financial sector, the fund's largest stake, retreated but turned in the second-best performance on a relative basis. Holdings among financial services firms and asset managers declined on continued uncertainty among investors about equity markets. Property and casualty insurance holdings retreated, although IDEX American Century International's holdings outperformed the index through lower exposure to the ailing industry. Banks, which represented the fund's heaviest industry weighting, declined but outperformed benchmark index. Banks retreated on concerns that slowing economic growth will hamper lending and increase bad debts. Those issues slowed BNP Paribas SA, France's largest lender, and Societe Generale, the country's third-largest bank. They were also hampered by the slowdown in their investment banking units. Technology turned in the top relative performance, led by the fund's semiconductor holdings. The slightly overweight position advanced and beat the benchmark on superior selection of companies that make computer chips. Holdings in the electrical equipment industry declined largely because business and consumer spending on technology continued to be constrained. But the fund's electrical equipment holdings beat the benchmark due to lower exposure to such firms than the index. The basic materials sector registered one of the fund's worst relative performances, due mostly to declines in IDEX American Century International's holdings in the chemical and forest products and paper industries. Those slumped on continued sluggishness in manufacturing and skepticism about a rebound in the global economy leading to increased demand for products. South Korea, Italy and Ireland were the top-contributing countries on a relative basis, while France, Australia and Switzerland were the top detractors. OUTLOOK While we take global trends into consideration, IDEX American Century International's management team will continue to rigorously follow its highly disciplined and repeatable process of identifying and owning businesses demonstrating strong, sustainable growth. /s/ Henrik Strabo - -------------------------- HENRIK STRABO /s/ Mark S. Kopinski - -------------------------- MARK S. KOPINSKI Co-Fund Managers American Century Investment Management, Inc. NOTE: Effective March 1, 2002, IDEX American Century International merged into IDEX International Equity and the fund was renamed IDEX American Century International. 8 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [CHART] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. HEDGE An investment made in order to reduce the risk of adverse movements in a security or currency by taking an offsetting position in a related security or currency. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------ ------ --------- --------- Class A (NAV) (16.49)% (5.06)% (3.47)% 2/1/97 Class A (POP) (21.09)% (6.13)% (4.42)% 2/1/97 MSCI-EAFE(1) (12.93)% (2.84)% (1.50)% 2/1/97 Class B (NAV) (17.09)% (5.69)% (4.10)% 2/1/97 Class B (POP) (21.24)% (5.88)% (4.27)% 2/1/97 Class C (NAV) (17.09)% -- (14.81)% 11/1/99 Class M (NAV) (17.08)% (5.61)% (4.02)% 2/1/97 Class M (POP) (18.73)% (5.80)% (4.19)% 2/1/97
NOTES 1 The Morgan Stanley Capital International - Europe, Asia, and Far East (MSCI-EAFE) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. International investing involves special risks including currency fluctuations, political instability, and different financial accounting standards.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE COUNTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------ iShares MSCI EAFE Index Fund 3.0% United Kingdom 24.3% Marks and Spencer Group PLC 2.2% Japan 12.8% Vodafone Group PLC 2.1% Switzerland 9.1% Royal Dutch Petroleum France 8.7% Company - NY Registered Shares 2.0% Netherlands 7.1% Royal Bank of Scotland Group PLC (The) 2.0%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 9 ANNUAL REPORT 2002 IDEX CONSERVATIVE ASSET ALLOCATION OBJECTIVE/FOCUS Current income and preservation of capital through investments in a combination of underlying IDEX funds. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT At best, the past twelve months have been difficult for investors. IDEX Conservative Asset Allocation began operations March 1, 2002, well into the period, which was marked by a recovery from the tragedy of September 11th, a subsequent plunge in equity markets, and an unprecedented series of steps by the Federal Reserve Board to put capital into the sputtering economy. For a time, it seemed to work. The markets staged a brief rally, consumer confidence remained high, the employment situation stabilized and manufacturing picked up. The signs pointed to better times ahead. Then the scandals emerged. Enron Corp. was only the beginning. Others, once Wall Street favorites, fell amid stories of shady accounting practices and abuses by executives. The result was a plunge in investor confidence that will take serious effort to reverse. Finally, the mounting tension between the United States and Iraq created a lingering uncertainty. And the markets hate uncertainty. Despite it all, however, the markets ended the period with a strong showing in October, ending the downward slide of a brutal third quarter. PERFORMANCE From inception March 1, 2002 through October 31, 2002, IDEX Conservative Asset Allocation returned (7.80)% as compared to its benchmark, the Lehman Brothers Aggregate Bond Index, which returned 6.16% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW IDEX Conservative Asset Allocation exists in part to soften the punishing effects of the bear market described above. It's a "fund of funds" whose holdings consist of a variety of underlying IDEX mutual funds. Its model, based on recommendations from Morningstar Associates, aims for a target of 30% stocks, 50% bonds and 20% cash. In keeping with the model, bond and money market funds accounted for the fund's largest holdings. Since the semi-annual report as of April 30, the fund increased its position in IDEX PIMCO Total Return from 22.3% to 25.3% of net assets. Other top holdings included IDEX Janus Flexible Income (12.0% of net assets) and IDEX Transamerica Conservative High-Yield Bond (9.5% of net assets). The fund's equity holdings reflected its risk-averse objectives. Among them were IDEX Salomon Investors Value and IDEX T. Rowe Price Tax-Efficient Growth. In keeping with its strategy of providing diversification in a single investment, IDEX Conservative Asset Allocation comprised fifteen underlying mutual funds from different asset classes. OUTLOOK Cautious optimism is in order. The U.S. economy has shown remarkable resiliency. Valuations have become more reasonable than they were at the height of the dot.com bubble. And the scandals that emerged during the past twelve months have a silver lining: they forced corporations to clean up their accounting practices and present financial information that makes sense. Yet whatever the market environment might bring in the year ahead, IDEX Conservative Asset Allocation will continue to seek opportunities using a wide- ranging, diverse mix of investments, a strategy that attempts to help investors - - especially those concerned about market risk - through short-term uncertainty as they pursue long-term goals. Fund Adviser AEGON/Transamerica Fund Advisers, Inc. 10 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. CONSERVATIVE A risk-averse investment strategy favoring preservation of capital. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date --------- --------- Class A (NAV) (7.80)% 3/1/02 Class A (POP) (12.87)% 3/1/02 LBAB(1) 6.16% 3/1/02 Class B (NAV) (8.20)% 3/1/02 Class B (POP) (12.79)% 3/1/02 Class C (NAV) (8.20)% 3/1/02 Class M (NAV) (8.20)% 3/1/02 Class M (POP) (10.03)% 3/1/02
NOTES 1 The Lehman Brothers Aggregate Bond (LBAB) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) ALLOCATIONS (% OF NET ASSETS) - --------------------------------------- ----------------------------- IDEX PIMCO Total Return 25.3% Fixed-Income 54.3% IDEX Janus Flexible Income 12.0% Aggressive 15.2% IDEX Transamerica Conservative Conservative 11.3% High-Yield Bond 9.5% Money Market 7.9% IDEX Transamerica Money Market 7.9% International 7.5% IDEX Transamerica Convertible Securities 7.7%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 11 ANNUAL REPORT 2002 IDEX FEDERATED TAX EXEMPT CREDIT QUALITY OF BONDS
(% of Net Assets) S&P --------------------- AAA 46.7% AA 22.1% A 10.7% BBB 6.9% NR 7.8%
CREDIT QUALITY OF BONDS
(% of Net Assets) Moody's ------------------------- A1 1.3% A2 1.3% A3 4.4% Aa1 9.1% Aa2 10.1% Aa3 5.1% Aaa 47.0% Baa1 2.5% Baa2 3.7% Baa3 1.2% NR 8.5%
OBJECTIVE/FOCUS Maximum interest income exempt from federal income tax while preserving capital by investing primarily in high quality municipal obligations. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT Interest rates continued to grind lower over the past twelve-month period. The Bond Buyer 40 Municipal Bond Index declined from a high of 5.47% on December 17, 2001, to a low of 4.86% on October 1, 2002. The ratio of municipal bond yields to Treasury bond yields stayed near historically cheap levels across the yield curve as the municipal market lagged the Treasury market as interest rates rallied to lower levels. The existence of a war premium being priced into the market also kept municipal bonds at cheap valuations relative to Treasury bonds. In previous years, high ratios indicated a potential problem in municipals, such as an excess of supply or an impending tax law change. The bond market's resilient performance can be attributed to the continuing flight to quality and asset reallocation that has resulted from mixed signals concerning economic recovery, the threat of war, and continued accounting and corporate governance scandals. The amount of municipal debt issued so far this year is approaching the record supply year of 1993. Typically this would weigh heavily on the market. However, retail and institutional buyers have easily digested the year-to-date supply of tax-exempt debt. The erosion of municipal credit quality typically lags declines in the general economy by approximately a year. The recession's effects on income and property tax revenues have not fully impacted municipal budgets. Local governments are typically impacted more significantly than state governments, which push down fiscal problems to counties, cities and school districts. Signs of fiscal distress that are becoming apparent include erosion in income tax revenues, increasing expenditures, the draw-down of rainy day funds and increasing pension fund liabilities. PERFORMANCE For the year ended October 31, 2002, IDEX Federated Tax Exempt returned 4.26%, as compared to its benchmark, the Lehman Brothers Municipal Bond Index which returned 5.87%. Please refer to the Performance Table on the next page for additional information. STRATEGY REVIEW The fund attempts to maximize tax-exempt income within specific risk parameters. Incremental return is provided to the portfolio by making relative value decisions involving credit spread relationships to benchmarks, yield curve positioning, state and sector allocations, and appropriate bond structures (coupon and callability). Strategy has been focused on maintaining a high credit quality profile. We have emphasized revenue bonds with dedicated revenue streams while reducing exposure to general obligation debt. The erosion in credit quality is beginning to be reflected in credit spreads, making an emphasis on high credit quality prudent. Yield curve positioning is being concentrated in the twenty-year maturity range. This portion of the yield curve offers the best total return potential. The fund is maintaining a neutral duration target relative to its benchmark. OUTLOOK The outlook for the financial markets in general and the municipal bond market in particular, is difficult to ascertain. There are numerous variables that are very difficult to handicap at this juncture. Is war with Iraq imminent and how long will it last? How will investors respond to the reforms concerning financial reporting and corporate governance? These are just a few of the questions that need to be answered before a clearer picture of the economy can be formulated. The municipal yield curve is expected to revert to a more normal, flatter configuration. The short-to-intermediate portion of the yield curve will be more susceptible to underperformance as this flattening occurs. The relatively strong demand for municipal debt should continue by both retail and institutional investors as global uncertainty and market volatility remains high. Municipal bonds will continue to be a low-volatility alternative to stocks and corporate bonds. This will help to maintain demand for municipal debt. /s/ J. Scott Albrecht - ---------------------------- J. SCOTT ALBRECHT /s/ Mary Jo Ochson - ---------------------------- MARY JO OCHSON Co-Fund Managers Federated Investment Management Company 12 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index over the past 10-year period. GENERAL OBLIGATION VS. REVENUE BONDS Municipal bonds are backed by the full faith, credit and taxing power of the issuer (General Obligation) or are secured through the ability of the issuer to earn an income through a public project (Revenue). AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year 10 year Inception Date ------ ------ ------- --------- --------- Class A (NAV) 4.26% 4.36% 5.46% 7.11% 4/1/85 Class A (POP) (0.70)% 3.35% 4.95% 6.82% 4/1/85 LBMB(1) 5.87% 6.14% 6.83% 8.50% 4/1/85 Class B (NAV) 3.63% 3.70% -- 4.57% 10/1/95 Class B (POP) (1.37)% 3.52% -- 4.57% 10/1/95 Class C (NAV) 3.63% -- -- 6.54% 11/1/99 Class M (NAV) 4.02% 4.09% -- 4.60% 10/1/93 Class M (POP) 1.98% 3.88% -- 4.49% 10/1/93
NOTES 1 The Lehman Brothers Municipal Bond (LBMB) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) REGIONAL CONCENTRATION (% OF NET ASSETS) - --------------------------------------------- ---------------------------------------- Birmingham Waterworks & Sewer Northeast 21.6% Board Series B 01/01/2021 3.1% Midwest 31.1% Wyoming State Farm Loan Board, South 24.9% Capital Facilities 10/01/2020 2.8% West 16.6% McHenry County Community School District Series A 01/01/2016 2.7% Indianapolis Gas Utility Series A 08/15/2012 2.7% Illinois State Partnership, Department of Central Management, Public Improvements 07/01/2017 2.7%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 13 ANNUAL REPORT 2002 IDEX GABELLI GLOBAL GROWTH OBJECTIVE/FOCUS Appreciation of capital through investments in common stocks of companies involved in the global market place. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT Ongoing economic uncertainty, in part reflecting oil prices over $30 per barrel, a crisis in confidence in the integrity of corporate America and the increasing probability of military action against Iraq weighed heavily on the stock market. Near panic selling in July pushed market indexes to multi-year lows. A brief rally in August gave way to another wave of selling in September and October. The leading market indexes were re-testing July lows until positive news and earnings reports lifted the markets from its most recent bottom on October 9, 2002. As equity prices slid, money poured into the bond market. This resulted in 10-year U.S. government bond yields falling below 4%. Similarly dated government bonds in Japan and Germany fell to yields of 1.18% and 4.27%, respectively. Investors are now faced with a difficult choice: leave your money in short term deposits and make about 1% in the United States, 3% in the Euro and nothing in the Yen; buy longer dated bonds at multi-year lows; or venture back into equities. We believe this is not the time to abandon equities, but rather to increase exposure. PERFORMANCE For the year ended October 31, 2002, IDEX Gabelli Global Growth returned (16.48)% as compared to its benchmark the Morgan Stanley Capital International World Free Index, which returned (14.50)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW We have experienced one of the deepest and most prolonged bear markets in history. The Standard and Poor's 500 Composite Stock Index appears headed for the third straight year of negative returns, the first time this has happened since 1939-41. The following are examples of holdings that have performed well, of late, and should help drive returns going forward. Harmony Gold Mining Company Limited has graduated from a medium-sized gold company to one of the world's largest with annual production of more than 3 million ounces of gold. Because the company is unhedged (no short gold positions), any increase in the gold price will likely have a very positive impact on profits. Nextel Communications, Inc. ("Nextel") is one of two remaining independent national wireless carriers in the United States, serving more than 10 million subscribers. Nextel is differentiating itself by offering its unique direct-connect feature that allows instant two-way voice communication. Nextel has submitted a proposal to the Federal Communications Commission ("FCC") to re-allocate its spectrum portfolio at the radio frequencies also used by the public safety organizations. The FCC decision is expected by the end of 2002 and, if approved, would significantly strengthen Nextel's competitive position. OUTLOOK What do we expect from equity markets over the next five years? Based on an economic model with 3.5% Gross World Product ("GWP") growth (3% in the U.S.) and 3% inflation, we believe after-tax corporate earnings will grow by approximately 6% annually. In addition, now that investors recognize the benefits of dividends, we believe we will see dividends grow by as much as 2% annually. Multiples are unlikely to expand. Under this scenario, U.S. equities, we believe, should return close to 8% annually - hardly inspiring, but still a significantly better return than can be expected from most other asset classes. Of course, through diligent fundamental research, we believe we can do better than the market. The great irony is that investors' appetite for stocks is always strongest near market tops and weakest near market bottoms. It is important to remember that like bull markets, bear markets always end, usually when least expected. We do not know when the market will bottom. However, we believe low interest rates and increasingly attractive equity valuations point to more fertile days for firms that have focused research efforts. /s/ Marc J. Gabelli - -------------------------- MARC J. GABELLI Fund Manager Gabelli Asset Management Company 14 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. DIVIDEND REINVESTMENT PLAN An automatic reinvestment of dividends and/or capital gain distributions into a shareholder's account whereby additional shares are purchased. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (16.48)% (23.36)% 9/15/00 Class A (POP) (21.07)% (25.37)% 9/15/00 MSCIWF(1) (14.50)% (21.67)% 9/15/00 Class B (NAV) (17.16)% (23.99)% 9/15/00 Class B (POP) (21.31)% (25.07)% 9/15/00 Class C (NAV) (17.16)% (23.99)% 9/15/00 Class M (NAV) (17.12)% (23.92)% 9/15/00 Class M (POP) (18.76)% (24.28)% 9/15/00
NOTES 1 The Morgan Stanley Capital International World Free (MSCIWF) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in global securities involve risks relating to political, social and economic developments abroad, foreign currency contracts for hedging, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE COUNTRIES (% OF NET ASSETS) - ------------------------------------------- ------------------------------------ Ticketmaster - Class B 2.1% United States 31.1% Harmony Gold Mining Company France 5.6% Limited 2.0% Japan 5.3% Coach, Inc. 1.9% South Africa 3.5% AT&T Corp. 1.8% Italy 3.4% Liberty Media Corporation - Class A 1.7%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 15 ANNUAL REPORT 2002 IDEX GOLDMAN SACHS GROWTH OBJECTIVE/FOCUS Long-term growth of capital by investing principally in stocks with long-term capital appreciation and foreign equity securities. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT During the reporting period, the U.S. equity markets experienced a great deal of weakness. Concerns over an economic rebound and corporate accounting methodology contributed to the weak environment. Virtually all major market sectors ended in negative territory for the period. In general, investors sold stocks as the outlook for a return to strong corporate profitability was dimmed by the lack of positive economic data and optimistic company guidance. While there are signs that the economy is on a path to recovery, investors remain cautious about the timing of an earnings recovery. PERFORMANCE For the year ended October 31, 2002, IDEX Goldman Sachs Growth returned (16.88)%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW During the reporting period, the fund was hurt by poor stock selection in both the cyclicals and health care sectors. While the fund's stocks in the technology sector fell in value, its holdings in this area performed relatively better than those in the index. The fund was aided by an underweight in the utilities sector. After the Enron Corp. debacle, investors began to closely scrutinize the financial statements of companies that pursue acquisition strategies. As a result, a number of companies in the cyclicals sector saw their stock prices decline sharply. Tyco International Ltd. was one of several companies whose stock price was punished as a result of its business strategy and structure. It was subsequently eliminated from the portfolio. Health care firms Pfizer Inc., (3.6%) and Wyeth (1.0%) also fell during the period. Wyeth recently lowered its earnings estimates for this year. Despite the short-term weakness in Wyeth's stock price, we are still confident in the company's long-term growth prospects. The company is one of the few in this sector with minimal patent exposure over the next few years. It also has several key drugs that are selling at a rapid pace. Despite owning several businesses that meet our criteria for a high-quality growth investment, the fund's technology holdings fell over the past twelve months. Nevertheless, the fund benefited from the fact that it did not own many of the telecom-related companies that have plummeted over the past couple of years. It did, however, invest in the businesses that are leaders in their respective market segments. Although it has been an extremely difficult environment in which to grow, companies such as Cisco Systems, Inc., (1.4%) continue to take share from smaller competitors. The fund's underweight in the utilities area helped its return. Weak power demand, coupled with worsening market conditions, contributed to making this group the weakest-performing sector over the past year. The majority of companies in this sector do not exhibit the high-quality growth characteristics we seek for the fund's portfolio. In general, utilities often face the threat of their product becoming a commodity, thus creating an environment in which it is difficult to generate strong profits. OUTLOOK While we neither make nor rely on economic forecasts to make investment decisions, we are beginning to see signs of an economic recovery. /s/ Herbert E. Ehlers - ----------------------------- HERBERT E. EHLERS Fund Manager Goldman Sachs Asset Management NOTE: Effective November 1, 2002, Banc of America Capital Management, LLC ("Banc of America") replaced Goldman Sachs Asset Management as sub-adviser to the fund. Banc of America has entered into an agreement with Marsico Capital Management, LLC ("Marsico") under which Marsico will provide portfolio management to the fund. In addition, the fund has been renamed IDEX Marsico Growth. 16 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [CHART] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. CDSC Contingent Deferred Sales Charge ("CDSC"), also known as a back-end load, is a fee charged at redemption of certain fund share classes. The charge declines to zero over a specified time, encouraging the buy and hold approach. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (16.88)% (6.99)% 3/1/99 Class A (POP) (21.46)% (8.41)% 3/1/99 S&P 500(1) (15.10)% (7.50)% 3/1/99 Class B (NAV) (17.52)% (7.66)% 3/1/99 Class B (POP) (21.64)% (8.17)% 3/1/99 Class C (NAV) (17.52)% (13.05)% 11/1/99 Class M (NAV) (17.43)% (7.56)% 3/1/99 Class M (POP) (19.07)% (7.81)% 3/1/99
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- -------------------------------------- Microsoft Corporation 5.4% Pharmaceuticals 12.1% Wal-Mart Stores, Inc. 4.0% Computer & Data Processing Pfizer Inc. 3.6% Services 8.2% Exxon Mobil Corporation 3.4% Commercial Banks 7.9% Viacom, Inc. - Class B 3.1% Communication 5.4% U.S. Government Agencies 5.1%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 17 ANNUAL REPORT 2002 IDEX GREAT COMPANIES - AMERICA(SM) OBJECTIVE/FOCUS Long-term growth of capital by investing fund assets in common stocks of large, established, U.S. based companies. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT In the short-term, the market is driven by emotions. Overall, a number of positive factors point to a shift from highly negative emotions and a weak market to a short-term upside move in the financial markets. These factors include the following: - - Many companies are reporting greater visibility and believe that the business environment is getting better. - - Interest rates are at the lowest point in years, and this should translate into increased spending. - - At the same time many people will be forced out of fixed income investments (because of low returns) and into equities. - - The housing market remains strong. - - The November-May period typically produces above-average returns. The primary negatives impacting the market include: - - The continued lack of confidence in U.S. businesses...we believe that most of the bad news is already out. - - The uncertainty of war with Iraq. The uncertainty surrounding Iraq is somewhat unnerving. Eventually the negative emotions that have driven the market to significant lows will be replaced by positive emotions, as earnings grow stronger. This market will rebound and the bull market will once again resume its march. While we are not market timers, we believe that the immediate future in the financial markets is much brighter than in the past. PERFORMANCE For the year ended October 31, 2002, IDEX Great Companies-America(SM) returned (14.59)% as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW We continue to believe in our strategy as Great Companies-America(SM) continues to dramatically outperform most large-cap growth funds. Investing in the best companies in the United States has helped us steer clear of the Enron Corp.'s and Tyco International Ltd.'s of the world. In a low-growth market the fact that our holdings pay dividends which average 1.2% or more will play a larger role in the performance of our fund. OUTLOOK We are optimistic and believe that the combination of the factors mentioned above will provide investors with satisfactory returns during the balance of the year. Longer term, we believe market returns in the 6-8% range on the Standard and Poor's 500 Composite Stock Index. /s/ James Huguet - ---------------------------- JAMES HUGUET /s/ Matthew Stephani - ---------------------------- MATTHEW STEPHANI /s/ Gerald W. Bollman - ---------------------------- GERALD W. BOLLMAN Co-Fund Managers Great Companies, L.L.C. 18 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. BLEND INVESTING Investing in different types of securities in an effort to reduce the overall volatility of a fund. Generally, different types of securities -- U.S. stocks, foreign stocks, and bonds - do not tend to be susceptible to the same market fluctuations, and therefore should perform well in a range of market conditions. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (14.59)% (11.01)% 7/14/00 Class A (POP) (19.29)% (13.17)% 7/14/00 S&P 500(1) (15.10)% (19.60)% 7/14/00 Class B (NAV) (15.26)% (11.67)% 7/14/00 Class B (POP) (19.49)% (12.83)% 7/14/00 Class C (NAV) (15.26)% (11.67)% 7/14/00 Class M (NAV) (15.15)% (11.57)% 7/14/00 Class M (POP) (16.84)% (11.95)% 7/14/00
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in a "non-diversified" fund may be subject to specific risks such as susceptibility to single economic political, or regulatory events, and may be subject to greater loss than investments in a diversified fund. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Pfizer Inc. 9.4% Pharmaceuticals 17.2% United Technologies Corporation 9.1% Business Services 12.4% American International Group, Inc. 8.6% Aerospace 9.1% General Electric Company 8.0% Security & Commodity Brokers 8.7% Omnicom Group, Inc. 8.0% Insurance 8.6%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 19 ANNUAL REPORT 2002 IDEX GREAT COMPANIES - GLOBAL(2) OBJECTIVE/FOCUS Long-term growth of capital in a manner consistent with preservation of capital. INVESTMENT FOCUS [GRAPH] MARKET ENVIRONMENT Over the past twelve months, world economies have struggled to break out of the recession of 2001. Despite historically low interest rates around the globe, companies were unwilling to make significant capital investments. The collapse of capital spending in telecommunications and technology also continued throughout the year. In the United States, as the Gross Domestic Product ("GDP") growth rates slowed to a crawl, the country was outraged at corporate scandal and executive excess. Investors lost billions in assets as a result of the greed of those in control at some of America's largest corporations. The problems began with the Enron Corp. debacle and continued with other large companies such as Xerox Corporation, Adelphia Communications Corporation and WorldCom Inc. As the crisis in confidence grew, pundits predicted the collapse of the U.S. economic system with analogies to the malaise in Japan. The increased investor skepticism and the slower than expected economic recovery drove the Standard and Poor's 500 Composite Stock Index ("S&P 500") down 15.1% over the past twelve months, with the S&P 500 and Dow Jones Industrial Average hitting multi-year lows in October of 2002. Most major European markets were down over the past twelve months as well. Labor unrest and political issues have increased the volatility of these markets, and the current recession is the first recession the new European Union has experienced. Limitations on Euro nations to incur budget deficits coupled with the unwillingness of the central bank to lower interest rates has caused major European economies to grind to a halt. The threat of war divided the major European nations as some supported the U.S. stance on Iraq while others opposed any use of force. This uncertainty resulted in volatile, declining European equity prices. Japan's stock market also continued its decade-long slide as the Nikkei Index was down 16% in U.S. dollars for the last twelve months. Japan is still dealing with a weak banking system and increasing unemployment, though the Japanese government appears committed to reversing price deflation. Against this backdrop, many pessimistic prognosticators predicted the demise of the U.S. capital markets. However, despite predictions of economic doom, the American spirit continues to thrive. Productivity gains over the past twelve months have given long-term investors in the United States' economic system reason to invest. As the American economic recovery appears to be taking hold, Washington is taking great care to ensure the corporate reforms and signs of economic growth do not falter. The world is watching and will follow America's lead out of this latest global economic crisis. PERFORMANCE For the year ended October 31, 2002, IDEX Great Companies - Global(2) returned (11.90)% as compared to its benchmark, the Morgan Stanley Capital International World Index, which returned (14.50)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW As investors seeking to create long-term wealth, we carefully select well-run companies in businesses we believe have favorable economics. We continue to search for companies in excellent businesses with superior executive talent, while evaluating those companies currently in our fund. This continued revaluation caused us to replace stocks of poorly performing companies with companies we believe meet our strict requirements for investment. OUTLOOK We believe the U.S. economy is showing signs of recovery and though that recovery may be slower than some investors hope, the trend of positive economic surprises is likely to continue globally as productivity gains fuel growth in real GDP of the developed economies. We also believe that the companies in which we invest are market leaders in their respective markets and have gained market share during the current recession. As the globe moves out of the current recession, we expect the global great companies to outperform their competitors both in the marketplace and equity markets. /s/ James Huguet - ---------------------- James Huguet /s/ Matthew Stephani - ---------------------- Matthew Stephani /s/ Gerald W. Bollman - ---------------------- Gerald W. Bollman Co-Fund Managers Great Companies, L.L.C. 20 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. EURODOLLAR A certificate of deposit in U.S. dollars in a bank that is not located in the U.S. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (11.90)% (22.14)% 9/15/00 Class A (POP) (16.75)% (24.18)% 9/15/00 MSCIW(1) (14.50)% (21.67)% 9/15/00 Class B (NAV) (12.58)% (22.77)% 9/15/00 Class B (POP) (16.95)% (23.86)% 9/15/00 Class C (NAV) (12.58)% (22.77)% 9/15/00 Class M (NAV) (12.40)% (22.64)% 9/15/00 Class M (POP) (14.15)% (23.00)% 9/15/00
- --------------- NOTES 1 The Morgan Stanley Capital International World (MSCIW) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in global securities involve risks relating to political, social and economic developments abroad, foreign currency contracts for hedging, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE COUNTRIES (% OF NET ASSETS) - ------------------------------------------------- -------------------------------------------- Pfizer Inc. 5.7% United States 54.1% Novartis AG - ADR 5.6% Switzerland 10.3% United Technologies Corporation 5.5% Japan 6.8% General Electric Company 5.3% Australia 4.7% Nestle SA - ADR 4.7% France 4.6%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 21 ANNUAL REPORT 2002 IDEX GREAT COMPANIES - TECHNOLOGY(SM) OBJECTIVE/FOCUS Long-term growth of capital by investing in common stocks of companies that offer technology or communications related products and services. INVESTMENT FOCUS [GRAPH] MARKET ENVIRONMENT Over the past year, the expectations for recovery of information technology have been steadily pushed out further each quarter. At the beginning of October, technology stock prices were so low they appeared to reflect no recovery at all. In such a period, the opportunity for rapid recovery can appear suddenly, surprising investors. Prices quickly appeared expensive to many observers, out-running any fundamental changes. This phenomenon is more accurately described as emotion rather than analysis, and it arises from a focus upon short-term results. The problem with analyzing any company that is going through cyclical change is that the short-term conditions obscure any assessment of longer-term trends. As the cyclical effects subside, analysts' perceptions of the longer-term future will seem clearer and technology stock prices will more accurately reflect fundamental values. The shifts in the competitive landscape also produce a widening gap between companies that adapt and those whose managers cannot keep up or whose technology is obsolete. We believe that our focus on the fundamental position of technology companies and their abilities to generate long-term free cash flow will provide a framework for good results. PERFORMANCE For the year ended October 31, 2002, IDEX Great Companies - Technology(SM) returned (29.45)% as compared to its benchmark, the NASDAQ Composite Index ("NASDAQ Composite"), which returned (21.33)% for the same period. Please see the Performance Table on the next page for more information. STRATEGY REVIEW While the NASDAQ Composite has had a terrible year, the technology sector has suffered even worse. And large capitalization stocks have also under performed. IDEX Great Companies - Technology(SM) is designed to be large-cap technology, and that accounts for more than the entire performance lag versus the benchmark. We continue to believe that the current design will outperform in the longer term, and if the New Year brings a cut in capital gains tax rates, this design will do even better. Our strategy of selecting the most dominant, best-managed companies should produce excellent longer-term results. While short-term difficulties can produce a compression of valuation, we continue to emphasize proper business positioning and discount from our estimate of intrinsic value as the method of choice. Our history has shown that this combination has proven to add investment value to the portfolio. OUTLOOK The recovery of the world economy has been sluggish and nowhere more difficult than in the technology sector. The investment community has steadily withdrawn capital from this sector. When the demand for technology does rebound, we expect those companies that have the ability to earn positive free cash flow even in difficult times to lead the way in the market. We believe the companies in our fund have that ability. /s/ James Huguet - --------------------- James Huguet /s/ Matthew Stephani - --------------------- Matthew Stephani /s/ Gerald W. Bollman - --------------------- Gerald W. Bollman Co-Fund Managers Great Companies, L.L.C. 22 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. NON-DIVERSIFIED FUND This type of fund takes larger positions in a smaller number of issuers and is therefore more susceptible to any single economic, political or regulatory occurrence than a diversified fund. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (29.45)% (44.74)% 7/14/00 Class A (POP) (33.33)% (46.09)% 7/14/00 NASDAQ Composite(1) (21.33)% (39.68)% 7/14/00 Class B (NAV) (30.12)% (45.31)% 7/14/00 Class B (POP) (33.61)% (46.03)% 7/14/00 Class C (NAV) (30.12)% (45.31)% 7/14/00 Class M (NAV) (29.99)% (45.22)% 7/14/00 Class M (POP) (31.39)% (45.46)% 7/14/00
- --------------- Notes 1 The NASDAQ Composite (NASDAQ Composite) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investing in technology stocks generally involves greater volatility and risks, so an investment in the fund may not be appropriate for everyone. Investments in a "non-diversified" fund may be subject to specific risks such as susceptibility to single economic political, or regulatory events, and may be subject to greater loss than investments in a diversified fund. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------------- ---------------------------------------------- Intel Corporation 7.6% Electronic Components & Analog Devices, Inc. 7.6% Accessories 29.5% International Business Machines Computer & Office Equipment 22.5% Corporation 7.5% Computer & Data Processing Dell Computer Corporation 7.0% Services 20.4% Applied Materials, Inc. 5.3% Pharmaceuticals 9.5% Industrial Machinery & Equipment 5.3%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 23 ANNUAL REPORT 2002 IDEX ISABELLE SMALL CAP VALUE OBJECTIVE/FOCUS Capital appreciation by investing primarily in relatively under-valued common stocks of domestic small companies. INVESTMENT FOCUS [GRAPH] MARKET ENVIRONMENT Over the past six months the stock market has reacted negatively to continued bad news surrounding the economy, the mixed reports on corporate earnings and increasing investor distrust of corporate America. Individual investors fled from stock mutual funds as their patience finally became exhausted with the negative news and their declining investment account values. This indiscriminate selling especially hurt the small cap segment of the market and funds like IDEX Isabelle Small Cap Value. As is the case in most panic selling situations, individual investors may have sold their stock mutual funds at the wrong time. The record stock mutual fund outflows during the past summer preceded the mid-October rebound in stock prices. We believe the money that was returning to the market was the result of the institutional investment managers - the so-called "smart money" - rebalancing their portfolios as they sold some bonds and reallocated to the stock market. The return of the big investors may have signaled a "market bottom," providing a more stable environment for investors and a good chance of increased share prices for all investors. PERFORMANCE For the year ended October 31, 2002, IDEX Isabelle Small Cap Value returned (10.18)%, as compared to its benchmark, the Russell 2000 Index, which returned (11.57)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Over the short-term, the recent market conditions pose a serious challenge for small company stock investing. Wholesale abandonment of the market has severely hurt the `smaller' small capitalization stocks as the lack of "liquidity" more so than fundamental valuations drove share prices lower. This is typically a very short-term phenomenon that we have used to our advantage in the past as this short-term distress creates great buying opportunities for buyers of fundamentally sound companies. In addition to the potential of a rapid rebound for some of the small cap companies in the portfolio, the fund is over weighting companies and sectors that will perform well once the economy improves. Sectors such as basic materials, capital goods and technology will benefit from an improving investment environment. Furthermore, the avoidance of sectors such as financials may have hurt the fund's performance over the past year, but we believe that this sector now offers considerably more risk than return and it remains underweighted in the portfolio. We remain focused on and committed to our investment approach: conduct thorough research, buy companies that are selling at a substantial discount to their economic value, maintain a long-term time horizon and try to take advantage of the short-term pricing inefficiencies of the stock market. OUTLOOK For investors who have pursued a diversified approach to investing, it is important to remember that small company stocks have historically outperformed larger issues when the economy recovers from recession. This was the case as the economy recovered in the early 1990s, and we believe this recovery may offer similar opportunities. We remain convinced that the economy will recover - albeit more slowly than most predict; small company stocks will continue to outperform; and investors will be rewarded for investing in fundamentally sound companies. These events, combined with the low interest rate environment, operating flexibility and the renewed interest in valuations should serve our portfolio of stocks very well. /s/ Warren J. Isabelle - ------------------------------- Warren J. Isabelle Fund Manager Ironwood Capital Management LLC 24 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. FAIR MARKET VALUE The value of an asset determined among a willing buyer and seller in an open market. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (10.18)% (5.84)% 4/2/01 Class A (POP) (15.12)% (9.14)% 4/2/01 Russell 2000(1) (11.57)% (9.90)% 4/2/01 Class B (NAV) (10.91)% (6.56)% 4/2/01 Class B (POP) (15.37)% (8.94)% 4/2/01 Class C (NAV) (10.91)% (6.56)% 4/2/01 Class M (NAV) (10.80)% (6.43)% 4/2/01 Class M (POP) (12.58)% (7.02)% 4/2/01
- --------------- Notes 1 The Russell 2000 (Russell 2000) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investing in small cap stocks generally involves greater risk and volatility, therefore an investment in the fund may not be appropriate for everyone.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ------------------------------------------- ---------------------------------------------- Signal Technology Corporation 3.9% Pharmaceuticals 11.7% Coca-Cola Bottling Co. Consolidated 3.8% Chemicals & Allied Products 9.0% United Therapeutics Corporation 3.7% Industrial Machinery & Equipment 6.6% Shaw Group Inc. (The) 3.4% Primary Metal Industries 6.1% PolyOne Corporation 3.1% Instruments & Related Products 6.0%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 25 ANNUAL REPORT 2002 IDEX JANUS BALANCED
CREDIT QUALITY OF BONDS (% OF NET ASSETS) S&P - ----------------------- AAA 23.9% AA 2.5% A 7.5% BBB 8.8% BB 0.7% Credit Quality of Bonds (% of Net Assets) Moody's - ----------------------- A1 2.5% A2 4.0% A3 1.8% Aa1 0.5% Aa2 1.1% Aa3 1.5% Aaa 24.0% Ba1 0.6% Ba2 0.2% Baa1 1.1% Baa2 4.3% Baa3 1.8%
OBJECTIVE/FOCUS Long-term growth and preservation of capital balanced with current income through investments in stocks and income producing securities. INVESTMENT FOCUS [GRAPH] MARKET ENVIRONMENT Cautious optimism was the watchword as our fiscal year commenced. But despite the lowest interest rates in 40-plus years, hopes for a much-anticipated recovery faded in the spring amid increasingly negative economic news. While investors tried to assess the strength of the economy and the outlook for company earnings, consumer spending slipped as stock losses mounted and jobs remained scarce. The biggest risk for the economy, however, was a potential war with Iraq, which threatened to drive oil prices higher and further erode consumer confidence. All three major stock market indexes ended the period lower as a result. In the bond markets, U.S. Treasury securities appeared on track to outperform equities for a third year as investors sought their relative safety and stability. PERFORMANCE For the year ended October 31, 2002, IDEX Janus Balanced returned (4.72)%, as compared to its benchmarks, the Standard and Poor's 500 Composite Stock Index and the Lehman Brothers U.S. Government/Credit Index, which returned (15.10)% and 5.49%, respectively, for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Given the lingering uncertainty, we have continued to stand by our research-driven investment approach, which focuses on identifying well-managed companies that can perform over the long term. Our emphasis is on those with pristine balance sheets, the ability to generate free cash flow and allocate capital prudently, and managements that have a history of executing business plans well, regardless of the economic climate. One holding that matches this description is Anheuser-Busch Companies, Inc. ("Anheuser-Busch"). The maker of top-selling Bud Light and Budweiser beers has earned a position among the fund's top-10 stocks by delivering consistent, predictable earnings. As proof, the brewer has posted double-digit earnings growth for 16 straight quarters. In spite of the economic downturn, Anheuser-Busch continues to enjoy pricing power and gain market share as volume growth remains strong. Berkshire Hathaway, Inc. ("Berkshire"), the diversified holding company steered by legendary investor Warren Buffett, also supported the fund's performance. With its rock-solid balance sheet and broad capital base, Berkshire represents the kind of company we want to own. Its insurance subsidiaries are profiting from firming premiums, and they are complemented by an impressive array of low-debt, asset-rich businesses that are especially appealing in this deflationary environment. On the downside, payroll and tax filing processor Automatic Data Processing, Inc. ("ADP") worked against the fund. As the economy slipped into recession and companies laid off staff, ADP struggled when the number of employees on its payroll declined. At the same time, client losses increased as the sluggish economy forced businesses to become more price sensitive. We still, however, find ADP a compelling long-term investment. Not only will the firm benefit as unemployment starts to level off, but we expect that when interest rates eventually move higher, the substantial float income on which ADP earns interest will rise as well. Also hindering results was J.P. Morgan Chase & Co. ("J.P. Morgan"), which we purchased at a reduced price on the strength of the company's capital ratios and the belief that the investment banking business had bottomed out. Unfortunately, J.P. Morgan's underwriting business continued to deteriorate, as did the quality of its credit portfolio. Adding to our disappointment was our view that J.P. Morgan's management was less than forthcoming about problems in the company's loan portfolio. As we lost confidence in J.P. Morgan, we decided to sell the stock. OUTLOOK Going forward, we caution that the outlook holds uncertainties, particularly the renewed downdraft in the economy - as reported in company interviews - and its potential impact on corporate and consumer spending. In this volatile market, we feel it pays to be patient, maintaining a long-term, research-driven investment approach that resists reacting to daily market gyrations. Relying on this strategy, we remain committed to providing you with solid long-term results. /s/ Karen L. Reidy - ---------------------------- Karen L. Reidy Fund Manager Janus Capital Management LLC 26 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Indices on Class A's inception date. BALANCED INVESTING The balanced style investor is one that keeps a consistent portion of their investments in equity securities such as stocks, as well as income producing securities such as bonds. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------- ------- --------- --------- Class A (NAV) (4.72)% 6.74% 11.80% 12/2/94 Class A (POP) (9.96)% 5.54% 11.01% 12/2/94 S&P 500(1) (15.10)% 0.73% 10.66% 12/2/94 LBGC(1) 5.49% 7.38% 8.48% 12/2/94 Class B (NAV) (5.31)% 6.08% 10.34% 10/1/95 Class B (POP) (10.05)% 5.92% 10.34% 10/1/95 Class C (NAV) (5.31)% -- (3.13)% 11/1/99 Class M (NAV) (5.23)% 6.18% 11.21% 12/2/94 Class M (POP) (7.12)% 5.96% 11.07% 12/2/94
- --------------- Notes 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index and Lehman Brothers U.S. Government/Credit (LBGC) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------------- ---------------------------------------------- Automatic Data Processing, Inc. 1.9% U.S. Government Obligations 12.2% Marsh & McLennan Companies, Inc. 1.8% U.S. Government Agencies 9.2% U.S. Treasury Bond 05/15/2016 1.8% Beverages 5.8% Gannett Co., Inc. 1.7% Insurance 5.5% Exxon Mobil Corporation 1.6% Communication 4.7%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 27 ANNUAL REPORT 2002 IDEX JANUS CAPITAL APPRECIATION OBJECTIVE/FOCUS Long-term growth of capital by normally investing at least 50% of assets in medium-sized companies. INVESTMENT FOCUS [GRAPH] MARKET ENVIRONMENT The year offered a wild ride for the market, which was mired in negative investor sentiment fueled by an uncertain corporate earnings picture, and more importantly, the ongoing weight of corporate accounting scandals. PERFORMANCE For the year ended October 31, 2002, IDEX Janus Capital Appreciation returned (23.38)%, as compared to its benchmark, the Standard and Poor's MidCap 400 Index, which returned (4.78)% for the same period. Please refer to the Performance Table on the next page for more information. Let me say that we are not happy with the results this year. The first goal is to make money for our shareholders and we failed to achieve this objective. However, we are encouraged that the relative performance improved during the year and we feel we have identified many companies at very attractive prices relative to their free cash flow. STRATEGY REVIEW We have not changed our investment approach since taking over as the portfolio manager of the fund in February 2002. We have positioned the fund more broadly across industries and continue to focus on identifying companies with strong market positions, as evidenced by stable and improving margins over time. Most importantly, we want to own companies with low debt levels that generate significant free cash flow from their operations. We put substantial effort into identifying companies that generate significant free cash flow today and will use it to the benefit of shareholders, via dividend, share repurchase, debt repayment, or smart acquisitions. Detracting from our performance was MGIC Investment Corporation ("MGIC"), which provides private mortgage insurance - a requirement on all residential real estate purchased with less than a 20% down payment. Given the upfront costs the company bears on a mortgage origination, MGIC suffered from a surge in refinancings caused by the substantial drop in interest rates during the year. Furthermore, even though MGIC suffers in the very near term, the company continues to write insurance that should produce strong cash flow in the years to come. Another disappointment was Concord EFS, Inc. ("Concord"). The electronic transaction and data processing firm was hit hard by its poor second-quarter earnings. Concord disclosed a one-time sale of equipment that contributed to its second-quarter results. This was troubling to the market and to us as the company makes the vast majority of its income from a recurring revenue transaction model, not a hardware sale. There were some bright spots in the midst of a dreary market. We achieved gains from our investment in International Game Technology ("IGT"), a slot machine manufacturer that controls roughly 70% market share in the United States. IGT maintains its strong position by substantially outspending its competition in research and development, resulting in a product line that remains innovative. Unit demand is strong as existing local and destination casinos thrive in the midst of a difficult economic environment. Another longtime holding that performed well was Apollo Group, Inc. ("Apollo"), which operates the University of Phoenix. Apollo continues to expand operating margins impressively at both its physical campuses and within its online course offerings. In addition to the growing demand for adult education, the company also continues to benefit from the pricing umbrella created by double-digit tuition increases at many public and private universities around the country. OUTLOOK We continue to focus on balancing the fund in this unpredictable environment. To us, this means looking broadly across all industries and market capitalizations for investment ideas while remaining true to the fund's investment discipline. We feel this is the best way to insulate against risk. As such, we keep the top position size in the fund capped at about 3%. We believe this positioning provides the best opportunity for outperformance in both good and bad markets. /s/ Jonathan Coleman - ---------------------------- Jonathan Coleman Fund Manager Janus Capital Management LLC 28 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. CYCLICAL VS. NON-CYCLICAL Cyclical products are sensitive to business cycles and price changes, while non- cyclical products are generally purchased at regular intervals, regardless of economic conditions. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------- ------- --------- --------- Class A (NAV) (23.38)% (4.37)% 4.13% 12/2/94 Class A (POP) (27.59)% (5.45)% 3.39% 12/2/94 S&P 400(1) (4.78)% 7.23% 13.89% 12/2/94 Class B (NAV) (24.04)% (5.05)% (0.41)% 10/1/95 Class B (POP) (27.84)% (5.24)% (0.41)% 10/1/95 Class C (NAV) (24.04)% -- (29.53)% 11/1/99 Class M (NAV) (23.98)% (4.96)% 3.56% 12/2/94 Class M (POP) (25.50)% (5.15)% 3.43% 12/2/94
- --------------- Notes 1 The Standard & Poor's MidCap 400 (S&P 400) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in a "non-diversified" fund may be subject to specific risks such as susceptibility to single economic, political, or regulatory events, and may be subject to greater loss than investments in a diversified fund.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------------- ---------------------------------------------- Berkshire Hathaway Inc. - Class B 3.3% Insurance 14.4% Lamar Advertising Company 3.0% Business Services 8.4% St. Jude Medical, Inc. 2.8% Medical Instruments & Supplies 6.0% International Game Technology 2.5% Health Services 5.5% Apollo Group, Inc. - Class A 2.4% Radio & Television Broadcasting 4.6%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 29 ANNUAL REPORT 2002 IDEX JANUS FLEXIBLE INCOME
CREDIT QUALITY OF BONDS (% OF NET ASSETS) S&P - ----------------------- AAA 42.5% AA 2.3% A 11.6% BBB 27.6% BB 3.8% B 2.0% All C's 0.4% NA 1.0% CREDIT QUALITY OF BONDS (% OF NET ASSETS) MOODY'S - ------------------------- A1 4.1% A2 4.7% A3 3.4% Aa2 1.3% Aa3 1.4% Aaa 43.5% B1 0.4% B2 1.0% B3 0.8% Ba1 7.5% Ba2 1.3% Baa1 4.8% Baa2 7.0% Baa3 9.4% Caa1 0.2% Caa3 0.2% NA 0.2%
OBJECTIVE/FOCUS Maximum total return, consistent with preservation of capital, by investing in income producing securities of any grade. [GRAPH] MARKET ENVIRONMENT Financial markets remained volatile in 2002 as optimism gave way to a more tepid outlook for economic growth and company earnings. In this environment, the bond market provided relative safety and stability to investors concerned about a volatile stock market, widening corporate accounting scandals, the ongoing threat of terrorism and a potential war in the Persian Gulf region. Indeed, this challenging period has created golden opportunities for bond investors. Falling interest rates have allowed companies to refinance their debt and reduce their borrowing costs. As a result, we have seen steady improvement in the financial health of many promising companies that are beginning to attract the attention of investors, ratings agencies and corporate suitors. PERFORMANCE For the year ended October 31, 2002, IDEX Janus Flexible Income returned 4.45%, as compared to its benchmark, the Lehman Brothers U.S. Government/Credit Index, which returned 5.49% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW During the period, we continued to rely on our flexible approach, which enabled us to balance higher-quality investments in Treasury bonds and investment-grade issues with carefully selected opportunities in the high-yield market. Among the fund's most significant positive contributors were our government-related issues, which benefited from lower interest rates and investors' flight to quality. These included mid-term and long-term Treasury notes, as well as our investments in the Federal National Mortgage Association, or Fannie Mae, the government-backed mortgage dealer. Given the uncertain economic outlook, we focused our corporate bond exposure on companies with stable, U.S. based cash flows that are relatively insulated from cyclical pressures. Standouts included The Dial Corporation ("Dial") and Golden State Bancorp Inc. ("Golden State"). Consumer products manufacturer Dial continued to report solid earnings growth and guidance, supported by market share gains and its ongoing investment in core brands such as Dial soap, Purex laundry detergent and Renuzit air freshener. Bank holding company Golden State, meanwhile, was bolstered by its scheduled acquisition by financial services powerhouse Citigroup Inc. ("Citigroup"), a higher-grade credit company. The deal is now clearing its final regulatory hurdles, and the bond is already benefiting from investors' confidence in Citigroup's solid credit quality. We have been encouraged to see many of our issuers use the low interest rate environment to pay down debt and streamline their balance sheets. One example is Cox Communications Inc. ("Cox"), a relatively new position in the fund. The nation's fifth-largest cable provider, Cox is completing its network upgrades ahead of schedule and now expects to be cash-flow positive by year-end. The bond was one of our strongest performers during the period. Not all of our holdings worked in our favor. Among our disappointments was our BBB-rated investment in General Motors Acceptance Corporation ("GMAC"), General Motors' financing arm. GMAC was shadowed by concerns over weakening vehicle sales and the long-term financial impact of its aggressive purchasing incentives, which may erode profit margins and siphon demand from the future. Despite these pressures, these bonds are backed by a solid balance sheet that continues to win our confidence. OUTLOOK As we look ahead, we caution that any economic recovery is likely to be lackluster and that the threatened war with Iraq remains a risk for both consumer spending and financial market performance. On a positive note, interest rates will likely be range-bound as a result of current low levels of inflation. In turn, many companies are adopting financial disciplines to help them weather a more challenging environment. As we monitor these crosscurrents, we will maintain our flexible approach, continuing to look for opportunities to invest in companies that are improving their balance sheets and positioning themselves for an improving economic environment. /s/ Ronald V. Speaker - --------------------- Ronald V. Speaker Fund Manager Janus Capital Management LLC 30 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index over the past 10-year period. CREDIT RATINGS A credit rating implies the potential for default of interest payments or principal at maturity by a bond issuer. Ratings are provided by a number of agencies such as Standard & Poor's and Moody's. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year 10 year Inception Date ------ ------ ------- --------- --------- Class A (NAV) 4.45% 6.09% 7.50% 7.74% 6/29/87 Class A (POP) (0.51)% 5.06% 6.98% 7.40% 6/29/87 LBGC(1) 5.49% 7.38% 7.50% 8.47% 6/29/87 Class B (NAV) 3.83% 5.40% -- 6.46% 10/1/95 Class B (POP) (1.17)% 5.23% -- 6.46% 10/1/95 Class C (NAV) 3.83% -- -- 6.45% 11/1/99 Class M (NAV) 3.93% 5.50% -- 6.03% 10/1/93 Class M (POP) 1.89% 5.29% -- 5.91% 10/1/93
- --------------- Notes 1 The Lehman Brothers U.S. Government/Credit (LBGC) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------------- ---------------------------------------------- Fannie Mae 03/15/2005 8.1% U.S. Government Obligations 21.2% U.S. Treasury Bond 08/15/2023 4.6% U.S. Government Agencies 19.9% U.S. Treasury Note 05/15/2007 3.0% Health Services 5.2% Fannie Mae 11/15/2030 3.0% Telecommunications 4.2% Verizon Global Funding Corp. Communication 2.9% 09/15/2005 2.4%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 31 ANNUAL REPORT 2002 IDEX JANUS GLOBAL OBJECTIVE/FOCUS Long-term growth and preservation of capital through investments primarily in common stocks of foreign and domestic issuers. [GRAPH] MARKET ENVIRONMENT Investors' emotions have been repeatedly tested over the period, starting with the surprising rebound in equity markets following the terrorist attacks in the United States last fall and ending with one of the worst quarterly losses on record in the just-completed third quarter. The biggest source of frustration was the inconsistent performance of the U.S. economy, which grew at a healthy clip earlier in the year, but became more sluggish in the second half. The shock to the equity markets caused by accounting irregularities and corporate malfeasance has caused businesses to be very cautious about undertaking any new initiatives. Therefore, business spending remained anemic throughout this period. Meanwhile, the recent softness in auto and retail sales suggests that consumer spending in the United States may be waning. The "stop and start" U.S. economy also had an adverse effect on international equity markets, many of which are dependent on a healthy U.S. economy for exports. In particular, Asian economies, with their dependence on technology exports, found it difficult to sidestep the sluggish U.S. economy. Meanwhile, equity markets in Latin America were knocked off balance by the debt default in Argentina and the election of a left-wing president in Brazil. Finally, the ongoing tension between the United States and Iraq, as well as continued terrorist activity across the world, has also contributed to the cautious stance exhibited by business leaders. PERFORMANCE For the year ended October 31, 2002, IDEX Janus Global returned (19.46)%, as compared to its benchmark, the Morgan Stanley Capital International World Index, which returned (14.50)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Performance was negatively impacted by our decision earlier in the year to hold onto Bermuda-based conglomerate Tyco International Ltd. ("Tyco"). We owned a large position in Tyco as we felt its diverse collection of businesses, ranging from ADT Security Services, Inc. to Curad bandages, were just the type of steady, predictable, defensive business models to own in a choppy economic environment. However, the stock came under tremendous selling pressure due to rumors about aggressive accounting practices. We welcomed news from Tyco that it planned to break itself up into four separate companies in order to unlock shareholder value, as our analysis showed healthy upside potential for the stock based on a "sum-of-the-parts" valuation. However, following the company's abandonment of this plan and further revelations of potential self-dealing by key managers, we sold the majority of our position. Viacom, Inc. ("Viacom"), the U.S. media conglomerate, was the top contributor to the fund's performance. The Viacom business model is attractive because its appetite for capital is diminimous, costs are variable and free cash flow generation is healthy. In addition, we believe media stocks can provide upside leverage to an improving economy. Viacom, we feel, has the right assets (MTV, Nickelodeon, CBS) at the right time. OUTLOOK Despite uncertainty about the pace of the global economic recovery, our objective has not changed - we continue to search out attractive, growing companies that are controlling costs, gaining market share, creating shareholder value, and selling at reasonable valuations. We are confident that our research can uncover "best-of-breed" companies that exhibit these critical characteristics. /s/ Helen Young Hayes - ------------------------------ Helen Young Hayes /s/ Laurence Chang - ------------------------------ Laurence Chang Co-Fund Managers Janus Capital Management LLC 32 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index over the past 10-year period. REGION A region represents countries within a given geographic area. Regional analysis is provided for global and international investors to illustrate the regions in which the fund is invested. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year 10 year Inception Date ------- ------ ------- --------- --------- Class A (NAV) (19.46)% (0.66)% 9.64% 10.48% 10/1/92 Class A (POP) (23.89)% (1.77)% 9.03% 9.86% 10/1/92 MSCIW(1) (14.50)% (1.24)% 6.94% 6.59% 10/1/92 Class B (NAV) (20.09)% (1.24)% - 5.23% 10/1/95 Class B (POP) (24.08)% (1.44)% - 5.23% 10/1/95 Class C (NAV) (20.09)% - - (15.34)% 11/1/99 Class M (NAV) (20.00)% (1.12)% - 7.73% 10/1/93 Class M (POP) (21.59)% (1.32)% - 7.61% 10/1/93
Notes 1 The Morgan Stanley Capital International World (MSCIW) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in global securities involve risks relating to political, social and economic developments abroad, foreign currency contracts for hedging, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE COUNTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Citigroup Inc. 2.8% United States 36.5% Total Fina Elf SA 2.1% United Kingdom 11.6% Philip Morris Companies Inc. 1.9% Japan 9.1% Microsoft Corporation 1.8% Switzerland 6.4% Pfizer Inc. 1.6% France 5.4%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 33 ANNUAL REPORT 2002 IDEX JANUS GROWTH OBJECTIVE/FOCUS Long-term growth of capital through investments in common stocks of companies selected solely for their earnings and growth potential. [GRAPH] MARKET ENVIRONMENT Encouraging news early in our fiscal year suggested an economic recovery was at hand. Those signs proved premature, however, as the economy took a turn for the worse during the spring. Mirroring this downturn, stocks struggled under the weight of ongoing corporate scandals and lingering weakness in company profits. Meanwhile, despite interest rates at 41-year lows, consumer spending also began to falter as Americans reacted to plunging share prices and tepid job growth by tightening their belts. Adding to the relentless uncertainty was a looming war with Iraq. As the period drew to a close, the most widely watched stock market measures had posted disappointing losses. PERFORMANCE For the year ended October 31, 2002, IDEX Janus Growth returned (19.21)%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW In this challenging setting, our focus is not on any particular industry or sector. Instead, we are looking for growth wherever we can find it. Our emphasis is on companies that are meeting or beating their quarterly earnings forecasts by means of top-line growth and new product introductions. Typically, they also enjoy pricing power, dominant and growing market share and have equity buyback programs in place, which means they are helping support our stocks. Perennial standout eBay was among our winners. The world's largest Internet auctioneer traded higher after reporting that third-quarter earnings more than tripled compared with the year ago period. On top of that, the value of merchandise sold on the company's worldwide electronic platform surged 60%, significantly boosting eBay's fees. From its humble beginnings selling Beanie Babies and Pez dispensers, eBay today serves more than 54 million registered users buying and selling everything from automobiles to real estate. Another contributor was Forest Laboratories, Inc. ("Forest"). Key to the drugmaker's success is its popular antidepressant, Celexa. Forest's new version of Celexa, Lexapro, was introduced in September and is being touted as a more effective version of its predecessor with fewer side effects. Early prescription data already suggest that Lexapro is on track to become a best seller. On the downside, Liberty Media Corporation ("Liberty") hindered our performance. The cable and media giant steered by visionary John Malone has fallen in sympathy with industry rivals who, burdened by heavy debt, struggled to survive in a sagging worldwide economy. Also overhanging the stock was an impending equity offering required by federal regulators as a result of Liberty's spin-off from AT&T Corp. Once it executes the offering, we believe the company will be an aggressive buyer of its shares, pushing prices higher. ASM Lithography Holding NV ("ASML") also disappointed. The Dutch semiconductor equipment maker recently reiterated its outlook for second-half shipments of its gear that maps out intricate circuitry on silicon wafers. Later, however, ASML reported that the chip market, which is struggling amid its worst slump ever, has turned increasingly volatile and that it expects no improvement over the next twelve to fifteen months. While ASML dominates a unique niche and its long-term fundamentals remain attractive, we see no significant recovery in the chip market on the horizon. We therefore elected to substantially trim our position in ASML. OUTLOOK Over the past few months, it has become more and more difficult to maintain a long-term perspective in a short-term-oriented market environment. That being the case, the companies we own must, first and foremost, be able to meet or beat their quarterly earnings projections. Just as important, they must also perform better than their peers on up market days and hold their own on down days. We believe this strategy will allow us to surpass or keep pace with our benchmark until the economy and market turn around. /s/ Edward Keely - ---------------------------- Edward Keely Fund Manager Janus Capital Management LLC 34 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index over the past 10-year period. COMPARATIVE INDEX A comparative index is a general broad-based index, representative of the objective of the fund, to which to compare a fund's performance. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year 10 year Inception Date ------- ------ ------- --------- --------- Class A (NAV) (19.21)% (1.04)% 6.82% 10.86% 5/8/86 Class A (POP) (23.65)% (2.15)% 6.21% 10.48% 5/8/86 S&P 500(1) (15.10)% 0.73% 9.87% 11.07% 5/8/86 Class B (NAV) (19.86)% (1.62)% -- 3.65% 10/1/95 Class B (POP) (23.87)% (1.82)% -- 3.65% 10/1/95 Class C (NAV) (19.86)% -- -- (24.76)% 11/1/99 Class M (NAV) (19.72)% (1.52)% -- 5.61% 10/1/93 Class M (POP) (21.31)% (1.72)% -- 5.50% 10/1/93 Class T (NAV) (18.82)% (0.69)% 7.30% 11.72% 6/4/85 Class T (POP) (25.72)% (2.44)% 6.35% 11.16% 6/4/85
Notes 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares, 1% for M shares and 8.5% for T shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Class T shares are not available to new investors.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ------------------------------------------- ----------------------------------------- Viacom, Inc. - Class B 8.9% Communication 13.5% eBay Inc. 6.7% Pharmaceuticals 13.4% Medtronic, Inc. 6.6% Business Services 12.5% Clear Channel Communications, Inc. 5.1% Medical Instruments & Supplies 6.6% Liberty Media Corporation - Class A 4.6% Electronic Components & Accessories 4.8%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 35 ANNUAL REPORT 2002 IDEX JANUS GROWTH & INCOME OBJECTIVE/FOCUS Long-term capital growth and current income through investments in common stocks. [GRAPH] MARKET ENVIRONMENT Fear was certainly in abundance during the year as the markets reacted to accounting irregularities, corporate scandals and Middle East tension by sending stocks to their lowest levels in nearly six years. Underpinning the pessimism was a "stop and start" economic recovery whose few signs of strength were limited to housing and automobile sales. Surprisingly, even as consumer confidence, retail sales and manufacturing experienced alarming drops late in the period, stocks moved dramatically higher. Better-than-expected company earnings seemed to lift the market's spirits. However, in light of lowered growth forecasts, it was unclear whether the market had turned a corner or simply sidestepped another downturn. PERFORMANCE For the year ended October 31, 2002, IDEX Janus Growth & Income returned (13.94)%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Given the tremendous uncertainty, we attempted to be both opportunistic and balanced in our security selection. As always, we were actively on the lookout for attractive businesses, both core long-term names and special situations, which offered us the opportunity to capitalize on volatility and weakness. We also trimmed a number of positions to create a "flatter" fund, thereby lessening the potential impact of any one holding. Meanwhile, we maintained a fixed-income position of roughly 9% during the period. We believe this weighting is appropriate given our assessment of the trade-off between risk and reward. All things considered, a number of our companies made positive contributions. Among them was Anheuser-Busch Companies, Inc., the world's largest brewer. With nearly 50% of the U.S. beer market, the company was able to exercise rare pricing power amid a contracting economy, enabling it to maintain substantial leverage in marketing and distribution - all but ensuring further market share gains. Pricing power also benefited Berkshire Hathaway Inc., which incurred tremendous losses in the aftermath of the September 11th attacks. Chairman and CEO Warren Buffett successfully managed through these losses in the company's insurance business to take advantage of rising prices and leveraged his AAA rating to boost market share. In contrast, our disappointments involved stocks whose downside risk turned out to be more damaging than we had anticipated. This was certainly the case with consumer finance company Household International, Inc. ("Household"), which moved sharply lower on its announcement in August that it would restate earnings dating back to 1994. More recently, the firm struggled with rising defaults as well as ensuing government regulations requiring lenders to raise capital ratios. In any event, we were remiss in reading severity of its weakening balance sheet. Consequently, we liquidated Household at a loss. Likewise, we dramatically reduced our position in J.P. Morgan Chase & Co., the nation's second-largest bank. We did not correctly ascertain headline risk as the company endured weakness in capital markets activity and credit concerns surrounding its commercial loans. Moreover, this misreading was compounded when the bank recently warned that its quarterly earnings would come in well below expectations. OUTLOOK In light of our more defensive posture during the year, we have had to be content with wringing out the excess. After the strong economic growth of the late 1990s, followed by three years of decline in which overcapacity in numerous sectors of the economy has been addressed, we expect continued volatility as the economy finds its way. In this kind of environment, it's important to take lessons from the past as well as look to the future for opportunity. We're constantly looking for new ideas for the fund as well as taking advantage of short-term disruptions to add to our existing holdings. /s/ David J. Corkins - ---------------------------- David J. Corkins Fund Manager Janus Capital Management LLC 36 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. "BOTTOM UP" ANALYSIS Identification of individual companies with earnings growth potential that may not be recognized by the market at large. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 10/31/02
From Inception 1 year Inception Date ------- --------- --------- Class A (NAV) (13.94)% (15.70)% 12/15/00 Class A (POP) (18.68)% (18.20)% 12/15/00 S&P 500(1) (15.10)% (17.71)% 12/15/00 Class B (NAV) (14.56)% (16.32)% 12/15/00 Class B (POP) (18.83)% (18.12)% 12/15/00 Class C (NAV) (14.56)% (16.32)% 12/15/00 Class M (NAV) (14.53)% (16.25)% 12/15/00 Class M (POP) (16.23)% (16.70)% 12/15/00
Notes 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ----------------------------------------- ---------------------------------------- Citigroup Inc. 4.2% Communication 8.1% Exxon Mobil Corporation 3.2% Commercial Banks 7.7% Microsoft Corporation 2.7% U.S. Government Obligations 6.5% Marsh & McLennan Companies, Inc. 2.6% Insurance 5.5% Viacom, Inc. - Class B 2.3% Computer & Data Processing Services 4.2%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 37 ANNUAL REPORT 2002 IDEX JENNISON EQUITY OPPORTUNITY OBJECTIVE/FOCUS Long-term growth of capital through investments in common stocks that appear to be under-valued in the market. [GRAPH] MARKET ENVIRONMENT Over the past year, we generally have found the most attractive risk/reward opportunities in the market were with companies that would benefit from improving economic fundamentals, as well as their own company-specific advances. While business trends have gradually improved throughout the year for many of the companies in the portfolio, the market overall has been disappointed with the pace of corporate profit recovery. Most recently, during the summer and early fall, the market has given up on its hope for a recovery. Indeed, it is fair to say that much of the decline in the value of the stocks in the portfolio can be attributed to the market's fear of a "double-dip" recession. Despite all the uncertainties, we believe the worst is behind us in the market, and have positioned the portfolio, as always, with what we think are the most attractive risk/reward opportunities in the market. PERFORMANCE For the year ended October 31, 2002, IDEX Jennison Equity Opportunity returned (14.47)% as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Earlier in the year, we sold several of our winners in the energy, materials, and industrials sectors, and have opportunistically added companies with much better secular growth potential. As mentioned, we have added select stocks in the information technology and health care sectors. Many of these technology companies are below the radar screen of most investors, have unique company specific dynamics, and were trading at very compelling valuations. In the health care sector, we have specifically purchased several pharmaceutical and biopharmaceutical companies at extremely attractive valuations. As an example, two of our top performers, Amgen Inc. ("Amgen") and Abbott Laboratories ("Abbott Labs"), have come from our opportunistic purchases in the depressed pharmaceutical industry. Amgen's two latest earnings reports beat analysts' expectations due to strong sales for a variety of its products, and the company also raised its future sales growth estimates. Helping Abbott Labs' performance was the Food and Drug Administration's ("FDA") approval for the company to continue selling its thyroid disorder medication, Synthroid, which has been on the market for 40 years. The FDA had previously required Abbott Labs to restrain its sales until a review of the medicine was completed. CIGNA Corporation ("CIGNA") was one of our poorest performers, as it has suffered from problems transitioning to a new customer service platform. These problems not only affected CIGNA's costs, but also negatively impacted the company's revenue. The company mis-priced some renewal, as well as new, business in its national account segment, as it attempted to overcome its account servicing issues. As a consequence, some of these accounts were unprofitable in the quarter. In addition, Stillwater Mining Company ("Stillwater"), a platinum group metals mining company, suffered from falling palladium prices due to the sluggish economy. Stillwater's share price was also pressured as the Securities and Exchange Commission attempted to force the company to reclassify its reserves, although Stillwater, after a lengthy process, ultimately prevailed. We have cautiously reduced the position, but believe the company now sells at a significant discount to its private market value. OUTLOOK It does appear that we are in the process of forming a market bottom. The slow pace of profit recovery, coupled with only average valuations for the market, could restrain the upside for the overall market. However, we are stock-pickers, building the portfolio opportunistically as we find stocks that offer the most compelling risk/reward scenario. Individually picking stocks is the key to our success, and we believe we can expect to find more opportunistic value investments in these turbulent markets. /s/ Bradley Goldberg - --------------------------- Bradley Goldberg /s/ Mark DeFranco - --------------------------- Mark DeFranco /s/ Brian Gillott - --------------------------- Brian Gillott Co-Fund Managers Jennison Associates, LLC 38 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. EQUITY FUND A mutual fund which invests primarily in stocks, usually common stocks. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------ ------ --------- --------- Class A (NAV) (14.47)% (6.25)% (0.29)% 2/1/96 Class A (POP) (19.18)% (7.31)% (1.13)% 2/1/96 S&P 500(1) (15.10)% 0.73% 6.66% 2/1/96 Class B (NAV) (15.10)% (6.84)% (0.90)% 2/1/96 Class B (POP) (19.34)% (7.03)% (0.90)% 2/1/96 Class C (NAV) (15.10)% -- (13.79)% 11/1/99 Class M (NAV) (14.91)% (6.73)% (0.79)% 2/1/96 Class M (POP) (16.60)% (6.92)% (0.94)% 2/1/96
Notes 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ----------------------------------------- ----------------------------------------- Boise Cascade Corporation 2.7% Computer & Data Processing XL Capital Ltd. - Class A 2.5% Services 10.6% Pfizer Inc. 2.4% Insurance 7.6% Allstate Corporation (The) 2.2% Pharmaceuticals 7.4% Millipore Corporation 2.2% Oil & Gas Extraction 6.6% Printing & Publishing 5.7%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 39 ANNUAL REPORT 2002 IDEX LKCM STRATEGIC TOTAL RETURN
CREDIT QUALITY OF BONDS (% OF NET ASSETS) S&P - ----------------------- AAA 2.2% AA 7.3% A 13.8% BBB 6.3% BB 2.3% NA 1.2% CREDIT QUALITY OF BONDS (% OF NET ASSETS) MOODY'S - ------------------------- A1 1.8% A2 3.7% A3 7.3% Aa2 9.8% Aa3 2.1% Aaa 1.3% Ba2 1.0% Baa2 1.8% Baa3 4.3%
OBJECTIVE/FOCUS Long-term growth of income and capital by investing in common stocks and bonds of well-established and fundamentally strong companies. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The twelve months ended October 31, 2002 continued the extraordinary volatility seen in the equity markets over the past three years. For the year ended in October, the Standard & Poor's 500 Composite Stock Index ("S&P 500") fell more than 15%, but the gyrations underlying that decline are worth noting -- after a rebound in the fourth quarter of 2001 and a flat first quarter of 2002, the equity markets plunged through July, bounced in August, fell again in September, and have been rallying since early October. The equity markets have experienced price moves not seen in decades, with the calendar third quarter of 2002 being the second-lowest return period for equities in almost 30 years. A number of concerns contributed to the market's weakness, including uncertainty over the progress of the economy, questions about the integrity of corporate executives and accounting practices, and continued unease over terrorism and the prospects of war with Iraq. PERFORMANCE For the year ended October 31, 2002, IDEX LKCM Strategic Total Return returned (5.52)%, a modest decline during the period, despite the carnage in the equity markets. The fund fulfilled its mission of protecting investors against significant downside risk in difficult market environments. The portfolio handily outperformed one of its benchmarks, the S&P 500, which returned (15.10)%, while its other benchmark, the Lehman Brothers Intermediate U.S. Government/Credit Index, returned 5.91%. Please refer to the Performance Table on the next page for further information. STRATEGY REVIEW The fund continued to benefit from the application of Luther King Capital Management's ("LKCM") investment philosophy, which emphasizes diversification across asset classes and holdings in the best-positioned large- and medium-capitalization stocks. Fixed income securities will continue to provide current income and a cushion against portfolio volatility, with the equity portion of the fund designed for long-term capital appreciation. LKCM's traditional insistence on companies with strong cash flow generation and sound accounting principles is always important, but was especially beneficial during this period of corporate financial scandals. The fund maintained its focus on companies with a demonstrated ability to grow earnings regardless of the economic environment, and our best performing stocks over the past twelve months were in sectors that are not dependent on an economic rebound. Within financials, Wells Fargo & Company and Cullen/Frost Bankers, Inc. were standout performers, and several of our consumer-oriented names outperformed, including Viacom, Inc. and Newell Financial Trust I. Our weighting in health care was a positive contributor to the fund's solid results, and we continued to avoid the pharmaceutical group in favor of companies with positive fundamentals like Triad Hospitals, Inc. and Medtronic, Inc. OUTLOOK It appears that corporate profit growth is in the initial stages of improvement, and coupled with more attractive valuation levels, the stage has been set for a gradually improving equity market environment. In the current environment of high corporate debt levels and limited access to capital, tremendous competitive advantages have been created for well-capitalized, credit-worthy, cash flow-generating businesses. These have always been the characteristics of our investment discipline, and they have never been more important than they are today. While near-term uncertainties exist, this volatile period has provided significant opportunities for investors in high-quality, well-positioned businesses, and we remain confident that a well-conceived, diversified investment portfolio will continue to serve our investors well. /s/ Luther King - --------------------- LUTHER KING /s/ Scot C. Hollmann - --------------------- SCOT C. HOLLMANN Co-Fund Managers Luther King Capital Management 40 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Indices on Class A's inception date. "STYLE BOX" MATURITY Fixed Income security maturities represented as short term (less than 4 years), intermediate term (4 - 10 years) and long term (more than 10 years). AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------ ------ --------- --------- Class A (NAV) (5.52)% 1.15 7.76% 12/2/94 Class A (POP) (10.72)% 0.01 7.00% 12/2/94 LBIGC(1) 5.91% 7.26 7.90% 12/2/94 S&P 500(1) (15.10)% 0.73 10.66% 12/2/94 Class B (NAV) (6.12)% 0.51 5.49% 10/1/95 Class B (POP) (10.81)% 0.32 5.49% 10/1/95 Class C (NAV) (6.12)% -- (4.66)% 11/1/99 Class M (NAV) (6.04)% 0.61% 7.19% 12/2/94 Class M (POP) (7.91)% 0.41% 7.05% 12/2/94
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index and Lehman Brothers Intermediate U.S. Government/Credit (LBIGC) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ------------------------------------------------- -------------------------------------- Kimberly-Clark Corporation 08/01/2007 3.0% Commercial Banks 9.9% General Electric Company 2.2% Telecommunications 7.4% Wells Fargo & Company 06/21/2010 2.2% Pharmaceuticals 5.8% Teva Pharmaceutical Industries Ltd. - ADR 2.1% Chemicals & Allied Products 5.3% Associates Corporation of Paper & Allied Products 5.1% North America 11/15/2008 2.1%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 41 ANNUAL REPORT 2002 IDEX MODERATE ASSET ALLOCATION OBJECTIVE/FOCUS Long-term growth of capital and current income through investment in a combination of underlying IDEX funds. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT At best, the past twelve months have been difficult for investors. IDEX Moderate Asset Allocation began operations March 1, 2002, well into the period, which was marked by the nation's efforts to recover from the tragedy of September 11th, a subsequent plunge in equity markets, and an unprecedented series of steps by the Federal Reserve Board ("Fed") to put capital into the sputtering economy. For a time, the Fed's medicine seemed to work. The markets staged a brief rally, consumer confidence remained high, the employment situation stabilized and manufacturing picked up. The signs pointed to better times ahead. Then the scandals emerged. Enron Corp. was only the beginning. Others, once Wall Street favorites, fell amid stories of shady accounting practices and abuses by executives. The result was a plunge in investor confidence that will take serious effort to reverse. Finally, the mounting tension between the United States and Iraq created a lingering uncertainty. And the markets hate uncertainty. Despite it all, however, the markets ended the period with a strong showing in October, ending the downward slide of a brutal third quarter. PERFORMANCE From inception March 1, 2002 through October 31, 2002, IDEX Moderate Asset Allocation returned (12.40)% as compared to its benchmarks, the Wilshire 5000 Total Market Index and the Lehman Brothers Aggregate Bond Index, which returned (19.12)% and 6.16%, respectively, for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW IDEX Moderate Asset Allocation seeks to provide long-term investors with capital appreciation and current income in a way that offers exposure to a variety of different investments. Among those investments, at any given time, some perform well while some lag. As a "fund of funds" whose holdings consist of a variety of underlying IDEX mutual funds, IDEX Moderate Asset Allocation attempts to offer exposure to this year's winners while limiting exposure to the laggards. During the period, the winners were among the fixed-income asset class. It was a punishing time for equities. The fund's model, based on recommendations from Morningstar Associates, aims for a target of 50% stocks, 35% bonds and 15% cash. Since the semi-annual report as of April 30, the fund increased its positions in bond funds from 32.7% to 37.1% of net assets. Among equity holdings, IDEX Salomon Investors Value was the largest position and accounted for 12.4% of the net assets. OUTLOOK Cautious optimism is in order. The U.S. economy has shown remarkable resiliency. Valuations have become more reasonable than they were at the height of the dot.com bubble. And the scandals that emerged during the past twelve months have a silver lining: they forced corporations to clean up their accounting practices and present financial information that makes sense. Whether the market has reached a bottom and is emerging from its three-year slump remains to be seen. Yet whatever the market environment might bring in the year ahead, IDEX Moderate Asset Allocation will continue to seek opportunities using a wide-ranging, diverse mix of investments, a strategy that attempts to help investors strike a balance among the growth potential of equities, fixed-income investments and capital preservation. Fund Adviser AEGON/Transamerica Fund Advisers, Inc. 42 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Indices on Class A's inception date. ASSET ALLOCATION INVESTING An approach that freely shifts money between many types of investments (stocks, bonds, etc.), attempting to maintain a consistent level of return. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date Class A (NAV) (12.40)% 3/1/02 Class A (POP) (17.22)% 3/1/02 Wilshire 5000(1) (19.12)% 3/1/02 LBAB(1) 6.16% 3/1/02 Class B (NAV) (12.90)% 3/1/02 Class B (POP) (17.26)% 3/1/02 Class C (NAV) (12.90)% 3/1/02 Class M (NAV) (12.80)% 3/1/02 Class M (POP) (14.54)% 3/1/02
NOTES 1 The Wilshire 5000 Total Market (Wilshire 5000) Index and Lehman Brothers Aggregate Bond (LBAB) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) ALLOCATIONS (% OF NET ASSETS) - --------------------------------------- ------------------------------- IDEX PIMCO Total Return 14.4% Fixed-Income 37.1% IDEX Salomon Investors Value 12.4% Aggressive 26.8% IDEX Janus Flexible Income 10.1% Conservative 18.5% IDEX Transamerica Equity 7.9% International 8.4% IDEX Transamerica Conservative Money Market 5.6% High-Yield Bond 7.8%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 43 ANNUAL REPORT 2002 IDEX MODERATELY AGGRESSIVE ASSET ALLOCATION OBJECTIVE/FOCUS Long-term growth of capital through investment in a combination of underlying IDEX funds. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT At best, the past twelve months have been difficult for investors. IDEX Moderately Aggressive Asset Allocation began operations March 1, 2002, well into the period, which was marked by the nation's efforts to recover from the tragedy of September 11th, a subsequent plunge in equity markets, and an unprecedented series of steps by the Federal Reserve Board ("Fed") to put capital into the sputtering economy. For a time, the Fed's medicine seemed to work. The markets staged a brief rally, consumer confidence remained high, the employment situation stabilized and manufacturing picked up. The signs pointed to better times ahead. Then the scandals emerged. Enron Corp. was only the beginning. Others, once Wall Street favorites, fell amid stories of shady accounting practices and abuses by executives. The result was a plunge in investor confidence that will take serious effort to reverse. Finally, the mounting tension between the United States and Iraq created a lingering uncertainty. And the markets hate uncertainty. Despite it all, however, the markets ended the period with a strong showing in October, ending the downward slide of a brutal third quarter. PERFORMANCE From inception March 1, 2002 through October 31, 2002, IDEX Moderately Aggressive Asset Allocation returned (16.30)% as compared to its benchmark, the Wilshire 5000 Total Market Index, which returned (19.12)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW IDEX Moderately Aggressive Asset Allocation seeks to provide long-term investors with capital appreciation tempered somewhat by bonds and money market investments. It's a "fund of funds" that provides a variety of asset classes in a single investment. Further, each of the underlying funds that make up IDEX Moderately Aggressive Asset Allocation has a different manager with a unique investment philosophy. At any given time, some perform well while others lag. During the period, the weighting of the fund's holdings reflected a defensive stance to help weather the bear market. The fund's largest single holding was IDEX Salomon Investors Value. Since April 30, 2002 weighting in that fund increased from 7% to 18.2% of net assets. IDEX Transamerica Equity, a fund with a relatively small number of carefully selected stocks, was the second-largest holding, accounting for 11.3% of net assets. The fund's model as of November 11, 2002, based on recommendations from Morningstar Associates, aims for a target of 70% stocks, 20% bonds and 10% cash. OUTLOOK Cautious optimism is in order. The U.S. economy has shown remarkable resiliency. Valuations have become more reasonable than they were at the height of the dot.com bubble. And the scandals that emerged during the past twelve months have a silver lining: they forced corporations to clean up their accounting practices and present financial information that makes sense. Whether the market has reached a bottom and is emerging from its three-year slump remains to be seen. Yet whatever the market environment might bring in the year ahead, IDEX Moderately Aggressive Asset Allocation will continue to seek growth opportunities while managing risk with a diverse mix of investments. This mix will include a wide range of equity funds offset by bonds and cash. Fund Adviser AEGON/Transamerica Fund Advisers, Inc. 44 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. SWEEP ACCOUNT A brokerage account whose cash balance is automatically transferred into an interest-bearing investment, such as a money market fund. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date Class A (NAV) (16.30)% 3/1/02 Class A (POP) (20.90)% 3/1/02 Wilshire 5000(1) (19.12)% 3/1/02 Class B (NAV) (16.70)% 3/1/02 Class B (POP) (20.87)% 3/1/02 Class C (NAV) (16.70)% 3/1/02 Class M (NAV) (16.60)% 3/1/02 Class M (POP) (18.26)% 3/1/02
NOTES 1 The Wilshire 5000 Total Market (Wilshire 5000) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. The management of this fund is based on a specific philosophy and on proprietary systems and methodology. There is no guarantee the fund will achieve its objectives. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) ALLOCATIONS (% OF NET ASSETS) - -------------------------------------- ------------------------------ IDEX Salomon Investors Value 18.2% Aggressive 37.6% IDEX Transamerica Equity 11.3% Conservative 24.9% IDEX Isabelle Small Cap Value 9.7% Fixed-Income 21.7% IDEX Janus Flexible Income 7.6% International 12.4% IDEX PIMCO Total Return 7.1%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 45 ANNUAL REPORT 2002 IDEX MUNDER NET50 OBJECTIVE/FOCUS Long-term capital appreciation through investments in stocks of domestic and foreign companies that are engaged in the Internet and Internet related businesses. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The market environment has remained difficult. Fears of a double-dip recession or additional geopolitical activity have kept investors away from technology-related investments. Additionally, there is concern that consumer confidence will erode, delaying growth opportunities. Information technology spending has stabilized during the year but has not yet returned to historical growth rates. Combined, these market forces contributed to the sell-off of technology shares this year. PERFORMANCE For the year ended October 31, 2002, IDEX Munder Net50 returned (30.25)% as compared to its benchmark, the Inter@active Week Internet Index which returned (35.23)%. Please refer to the Performance Table on the next page for additional information. STRATEGY REVIEW The mandate of the fund is to provide investors diversified exposure to the emerging digital economy. We believe that technology, and specifically Internet technology, will continue to be points of emphasis among businesses and consumers. We have continued to increase the dotcom weighting in the fund and believe, in time, the Internet will take market share from other media. Consumers will use the Web for convenience and cost savings, and they will look with increasing regularity to the Internet for news and other content. Digital networks will displace other types of communication networks, while businesses will increasingly look to the Web to provide communication to suppliers, customers and employees, and will use the Web to better manage costs and inventories. They will embrace the Web as an additional attractive channel to conduct business. The growth of the Internet among businesses and consumers provides fertile investment opportunities for the fund. OUTLOOK We believe the current environment favors Internet and Internet-related companies. Adoption of the Internet by both businesses and consumers remains strong domestically and internationally. There are now many accepted fee-generating services that are showing signs of strength. Customers look to these Web sites to book travel reservations, find new jobs and post personal ads. We believe these services may move entirely to the Web over time. The rapid growth of e-commerce continues to surprise, as consumers look to the Internet for convenience and cost savings. Subscription and premium services hold promise as additional accelerating revenue streams. Further, the intense competition in the telecommunications industry actually helps the Internet sector as it continues to lower the cost of access. More specifically, domestic usage was up 31% year over year in September, with 157 billion minutes spent online during the month. Abroad, European usage grew 41% in August. Further, the United States accounts for approximately 25% of global users, while Europe accounts for 27% of users. Several of our companies are among the most-visited or frequented sites on the Internet. Amazon.com, Inc. accounted for 476 million minutes, up 27% from a year ago. Yahoo! Inc. accounted for 13.2 billion minutes, up 44% from a year ago. And finally, eBay Inc. accounted for 3.8 billion minutes, up 77% from a year ago. One of the most interesting e-commerce sectors continues to be travel, as the transition from booking travel offline to booking online is nothing short of remarkable. Two of our companies in this segment, Expedia, Inc. and Hotels.com continue to build profitable growth in this fragmented market. In conclusion, we are excited about the prospects of the technology markets. We believe the long-term investor is poised to do well investing in the right companies with the right management. /s/ PAUL T. COOK PAUL T. COOK Fund Manager Munder Capital Management 46 IDEX MUTUAL FUNDS NOTE: This fund is closed to new investors. ANNUAL REPORT 2002 [CHART] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Indices on Class A's inception date. VOLATILITY The relative rate at which the price of a security moves up and down. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (30.25)% (47.75)% 12/15/00 Class A (POP) (34.09)% (49.30)% 12/15/00 S&P 500(1) (15.10)% (17.71)% 12/15/00 Inter@ctive(1) (35.23)% (51.87)% 12/15/00 Class B (NAV) (30.77)% (48.32)% 12/15/00 Class B (POP) (34.23)% (49.43)% 12/15/00 Class C (NAV) (30.77)% (48.32)% 12/15/00 Class M (NAV) (30.67)% (48.22)% 12/15/00 Class M (POP) (32.05)% (48.50)% 12/15/00
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index and Inter@ctive Week Internet (Inter@ctive) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. For the S&P 500 only, Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investing in technology stocks generally involves greater volatility and risks, so an investment in the fund may not be appropriate for everyone.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------------- Yahoo! Inc. 6.8% Computer & Data Processing Services 34.3% DoubleClick Inc. 6.6% Business Services 30.9% Overture Services, Inc. 6.3% Computer & Office Equipment 9.9% Expedia, Inc. - Class A 5.6% Transportation & Public Utilities 5.8% Hotels.com - Class A 5.2% Motion Pictures 4.3%
This material must be preceded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 47 ANNUAL REPORT 2002 IDEX PBHG MID CAP GROWTH (FORMERLY IDEX PILGRIM BAXTER MID CAP GROWTH) OBJECTIVE/FOCUS Long-term growth of capital by investing fund assets principally in common stocks of medium capitalization companies. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The broad market continued its decline throughout most of the year as investor confidence was dealt a series of blows relating to alleged accounting irregularities by large domestic companies such as telecommunications giant WorldCom Inc., Enron Corp., Adelphia Communications Corporation and Xerox Corporation. In spite of the broad market's decline, the U.S. economy showed some signs of stabilization. However, sluggish growth, faltering consumer sentiment and a weakening job market contributed to a growing concern regarding the possibility of a "double-dip" recession. As expected, the Federal Reserve Board ("Fed") maintained a neutral bias on interest rate changes for most of the period. However, since that time, the fed funds rate was cut by half of a point, a larger cut than most analysts anticipated, which could signal the last rate cut for some time. A September sell-off ensured a negative finish for all the major indexes for the one-year period ended October 31, 2002 despite posting positive performance during the month of October. Worldwide fears were brought to the forefront again as the anniversary of the September 11th terrorist attacks tempered consumer confidence. The reality of a potential conflict in Iraq combined with the horrifying memories of a year ago, and a weak economy, significantly dampened any rebound in the market. Unfortunately, corporate governance issues did not completely resolve themselves. There appears, however, to be light at the end of the tunnel, as government officials have begun prosecuting corporate wrongdoers. PERFORMANCE For the year ended October 31, 2002, IDEX PBHG Mid Cap Growth returned (20.11)% as compared to its benchmark, the Russell Mid Cap Growth Index, which returned (17.61)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Technology stocks proved to be the greatest drag on performance during the twelve month period as this sector as a whole declined the most. While our technology weighting decreased, we were still overweight compared with the benchmark for much of the period. When industry-leading technology companies such as Intel Corporation began projecting reduced earnings forecasts during the third quarter 2002, we experienced a sharp sell-off in sub-sectors, semiconductors and semiconductor capital equipment. During the period, the fund experienced strong performance from the services sector, which produced positive returns. Once again educational stocks such as Apollo Group, Inc. and Career Education Corporation led this sector. The consumer non-cyclical and industrial sectors also made strong contributions to results, highlighted by our sizeable exposure to the aerospace and defense segment. The health care sector proved to be a reliable industry with moderate to high growth rates showing steady acceleration. Although our overall position in the health care sector negatively contributed to the fund's performance, we did have some strong holdings in managed care and hospital-related stocks. OUTLOOK With some of our top holdings in the aerospace and defense sector, we believe the fund remains well positioned to take advantage of any conflict that may arise overseas. We are further limiting our technology exposure at this time, with our weighting at a historically low level of the fund's assets. Additionally, we increased our exposure to the industrial and consumer sectors as well. If the current economic conditions continue or weaken even further, we remain confident that the fund is well positioned to capture any future upside from holdings such as educational stocks, which we think have the potential to outperform in a slowing economy. As always, we will continue to search for pockets of strength across the broad market, seeking companies that we believe have accelerating growth characteristics and strengthening business fundamentals. /S/ GARY PILGRIM GARY PILGRIM Fund Manager Pilgrim Baxter & Associates, Ltd. 48 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. [CHART] INVESTMENT STYLE "Growth" reflects companies with the potential to increase earnings faster than other companies. "Value" reflects companies that are thought to be undervalued (low P/E) relative to their stock price. Blend is a mixture of both philosophies. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (20.11)% (7.52)% 3/1/99 Class A (POP) (24.51)% (8.93)% 3/1/99 Russell MCG(1) (17.61)% (6.54)% 3/1/99 Class B (NAV) (20.78)% (8.24)% 3/1/99 Class B (POP) (24.74)% (8.74)% 3/1/99 Class C (NAV) (20.78)% (20.94)% 11/1/99 Class M (NAV) (20.69)% (8.14)% 3/1/99 Class M (POP) (22.27)% (8.39)% 3/1/99
NOTES 1 The Russell Mid Cap Growth (Russell MCG) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Varian Medical Systems, Inc. 2.5% Computer & Data Processing Corinthian Colleges, Inc. 2.4% Services 12.2% Express Scripts, Inc. - Class A 2.4% Health Services 10.1% Symantec Corporation 2.3% Electronic Components & Waste Connections, Inc. 2.3% Accessories 7.3% Educational Services 6.5% Medical Instruments & Supplies 6.0%
This material must be preceded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 49 ANNUAL REPORT 2002 IDEX PBHG TECHNOLOGY & COMMUNICATIONS (FORMERLY IDEX PILGRIM BAXTER TECHNOLOGY) OBJECTIVE/FOCUS Growth of capital through investments in common stocks of small, medium or large capitalization companies that rely extensively on doing business in the technology or communications sectors of the market. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT During the early part of 2002, a string of accounting improprieties and corporate malfeasance cast a dark shadow on the market and dampened investor sentiment. The outlook for the macro-economic environment remained cloudy, as investors continued to grapple with conflicting signals regarding the state of the recovery. Technology stocks continued to remain mired in their steep slide as the clouds of investor concerns refused to lift from the group. It seems as though the stock market is playing a perpetual game of musical chairs, with technology investors continuing to end up without a seat as the music stops. A September swoon wreaked havoc on the equity market causing stocks to face major broad-based declines that were driven by lingering concerns about corporate governance, the rate of economic recovery and unsettling geopolitical events, and again technology stocks were among the hardest hit. The period closed on an upbeat note, however, as a technology-driven rally led the stock market to healthy returns for most of October. PERFORMANCE For the year ended October 31, 2002, IDEX PBHG Technology & Communications returned (46.05)% as compared to its benchmarks, the Soundview Technology Index and the Pacific Stock Exchange High Technology Index, which returned (35.48)% and (24.86)%, respectively, for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Many factors contributed to the technology sector's poor performance over the past year. The continued anemic economic recovery continued to inhibit technology spending across a variety of technology sub-sectors. During the period almost every technology sub-sector declined. The stocks of semiconductor producers and semi-conductor capital equipment suppliers significantly underperformed as investors questioned the rate of the cyclical recovery in orders for that group while remaining concerned about the near-term outlook for information technology ("IT") spending. Earlier in the 12-month period, the fund was impacted by the events at Adelphia Communications Corporation - we owned our position before disclosures of unscrupulous borrowing arrangements made to the controlling family of that company. Also hard hit during the latter part of the year was the entire IT services and consulting segment, mostly in response to a startling negative earnings forecast from Electronic Data Systems Corporation, which had a negative impact on similar holdings from this segment we had in the portfolio. OUTLOOK We believe that the economy remains on the recovery track. Corporate profitability is generally increasing, inventory levels have declined substantially over the past two years and stock valuations are generally more attractive. Unfortunately, we underestimated the continued deterioration in investor sentiment caused by the accounting scandals and corporate improprieties that have recently come to light. Although market sentiment remains negative, we believe the economy's recovery will produce a healthier balance between capital spending and consumption. In the short term, the technology sector faces fierce competition, end market weakness and lower-than-expected secular growth. Nevertheless, we have found pockets of strength in certain sub-segments, such as computer services and consumer-related technologies. Overall, we believe that the technology sector is in a better position than it was twelve months ago and has the potential to offer investors very good long-term growth prospects relative to other areas of the market. We continue to focus on investing in companies that we believe have accelerating business dynamics, proven operating models, sustainable competitive advantages and solid franchise qualities. We have been, and remain, invested in those companies that we believe exhibit the long-term growth characteristics sought by our disciplined investment approach. We want to thank all of our investors for their continued support during this historically difficult market climate. /S/ MICHAEL MA MICHAEL MA Fund Manager Pilgrim Baxter & Associates, Ltd. 50 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Indices on Class A's inception date. [CHART] DOLLAR COST AVERAGING An investment strategy whereby a specific amount of money is invested regularly regardless of market conditions. This allows accumulation of shares gradually, at an average price that often is lower over the long-term than if purchased at one time. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (46.05)% (58.23)% 3/1/00 Class A (POP) (49.01)% (59.11)% 3/1/00 PSEHT(1) (24.86)% (30.05)% 3/1/00 Soundview(1) (35.48)% (46.72)% 3/1/00 Class B (NAV) (46.93)% (58.89)% 3/1/00 Class B (POP) (49.58)% (59.35)% 3/1/00 Class C (NAV) (46.93)% (58.89)% 3/1/00 Class M (NAV) (46.57)% (58.72)% 3/1/00 Class M (POP) (47.63)% (58.88)% 3/1/00
NOTES 1 The Soundview Technology (Soundview) Index and Pacific Stock Exchange High Technology (PSEHT) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. For PSHET only, Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in a "non-diversified" fund may be subject to specific risks such as susceptibility to single economic, political, or regulatory events, and may be subject to greater loss than investments in a diversified fund. Investing in technology stocks generally involves greater volatility and risks, so an investment in the fund may not be appropriate for everyone.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Microsoft Corporation 5.3% Electronic Components & Dell Computer Corporation 3.9% Accessories 25.3% Intel Corporation 3.6% Computer & Data Processing Silicon Laboratories Inc. 2.5% Services 23.1% Symantec Corporation 2.4% Computer & Office Equipment 13.4% Communications Equipment 6.1% Industrial Machinery & Equipment 3.4%
This material must be preceded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 51 ANNUAL REPORT 2002 IDEX PIMCO TOTAL RETURN
CREDIT QUALITY OF BONDS (% OF NET ASSETS) S&P ------------------------------- AAA 53.4% AA 1.6% A 7.1% BBB 33.8% BB 2.4% B 1.5% NA 1.3%
CREDIT QUALITY OF BONDS (% OF NET ASSETS) MOODY'S ------------------------------- A2 4.7% A3 5.1% Aaa 52.2% B1 0.5% B2 0.8% B3 0.1% Ba1 5.2% Ba2 0.2% Ba3 1.6% Baa1 6.8% Baa2 12.6% Baa3 8.8% NA 2.5%
OBJECTIVE/FOCUS Maximum total return consistent with preservation of capital by investing principally in fixed-income securities. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT Investors flocked to the safety of Treasury bonds during 2002 amid anxiety about sluggish global growth, the integrity of corporate accounting and governance practices and a potential U.S. war with Iraq. Treasury yields fell dramatically with the 10-year yield touching its lowest level in more than 40 years. Fueled by the Treasury rally, the broad U.S. bond market out-performed riskier assets such as stocks and high yield debt. Growth in Europe was practically non-existent and Japan's economy remained moribund. That left U.S. consumers, bolstered by the lowest mortgage rates in three decades, zero interest car loans and rising real wages, as the only significant source of demand anywhere in the world. Concern about a so-called "double-dip" recession in the United States therefore centered on the risk that weakness in the corporate sector would infect consumer confidence and discourage spending. While unemployment remained relatively low at just under 6 percent, applications for jobless claims climbed as companies laid off workers to trim costs and boost cash flow. Such efforts by companies to rehabilitate their credit quality did little to reassure corporate bond investors. The corporate bond market virtually shut down during June, July and September. A stream of bad news from high profile issuers reinforced risk aversion among lenders already bruised by accounting scandals. PERFORMANCE From inception March 1, 2002 through October 31, 2002, IDEX PIMCO Total Return returned 4.13%, as compared to its benchmark, the Lehman Brothers Aggregate Bond Index, which returned 6.16% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW An above index duration was positive for returns as rates fell. An overweight to short/intermediate maturities helped returns as rates declined most among these issues. A mortgage overweight was neutral as mortgages performed in line with like-duration Treasuries. A corporate underweight was positive, but security selection of telecom and energy/pipeline issues hurt returns amid concern about weak profits and credit rating downgrades. Emerging market bonds were negative amid overall risk aversion and anxiety about Brazil's presidential election. An allocation to developed non-U.S. bonds, focused on Eurozone issues, detracted from returns as rates fell further in the United States amid the flight to safety. OUTLOOK We believe that the modest U.S. recovery will continue and the risk of deflation will be averted. The consumer/housing sector will hold fast while the battered business sector heals. A possible war with Iraq would initially drag down growth due to a negative shock to consumer and business confidence, however accommodative monetary policy and fiscal stimulus would help offset this impact. Interest rates will be range-bound around their current low levels as tepid growth constrains upward pressure. With interest rates expected to shift only modestly, we will target duration near the benchmark; adding value by capturing attractive yields in non-Treasury markets. We will focus on intermediate maturities, which offer higher yields than a short/long maturity emphasis and also provide the opportunity to reap gains by "rolling down" the yield curve. We will overweight mortgages to capture yield premiums that compensate for duration extension if mortgage rates climb. We will target near-index weightings of corporates; selectively adding short-maturity issues that offer attractive credit premiums. We will retain telecom and energy pipeline credits, which have strong asset coverages and will recover as an improvement in corporate credit quality restores investors' risk appetite. We will own emerging market bonds to enhance yield, including Brazil. Despite recent volatility, Brazil's fiscal surpluses and significant cash reserves are positives for the long term. We will continue to take exposure in intermediate Eurozone issues, which have rallied less than richly valued U.S. Treasuries. /s/ WILLIAM H. GROSS WILLIAM H. GROSS Chief Investment Officer Pacific Investment Management Co., LLC 52 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. [CHART] WARRANT A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific amount of securities at a specific price, usually above the current market price at the time of issuance, for an extended period, anywhere from a few years to forever. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date --------- --------- Class A (NAV) 4.13% 3/1/02 Class A (POP) (0.81)% 3/1/02 LBAB(1) 6.16% 3/1/02 Class B (NAV) 3.80% 3/1/02 Class B (POP) (1.20)% 3/1/02 Class C (NAV) 3.80% 3/1/02 Class M (NAV) 3.85% 3/1/02 Class M (POP) 1.81% 3/1/02
NOTES 1 The Lehman Brothers Aggregate Bond (LBAB) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) - --------------------------------------- Ginnie Mae 11/01/2032 11.8% Fannie Mae 11/01/2032 7.0% Fannie Mae 12/18/2002 4.7% Fannie Mae 11/01/2017 3.6% Commonwealth Bank of Australia Finance Inc. (Delaware) 11/20/2002 3.4%
This material must be preceded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 53 ANNUAL REPORT 2002 IDEX PROTECTED PRINCIPAL STOCK OBJECTIVE/FOCUS Total return consistent with preservation of capital by providing a protection guarantee for initial investments while investing principally in equity securities. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT IDEX Protected Principal Stock's inception was at the beginning of the third quarter of 2002. This quarter proved to be the most difficult quarter experienced by equity investors since the fourth quarter of 1987. In fact, the third quarter of 2002 produced the sharpest losses in the marketplace of any quarter during the bear market which began in March 2000, arguably the worst market environment since the Great Depression era of the 1930s. Deteriorating economic conditions, the erosion of confidence caused by accounting scandals and the threat of war all combined to precipitate a large magnitude of selling pressure. The Standard & Poor's 500 Composite Stock Index ("S&P 500") hit an intraday low of 776 on July 24, 2002, recovered through mid-August, and then headed back toward its July low by the end of September. For the quarter ended September 30, 2002, the S&P 500 declined by 17.27%. Declining equity prices continued into early October, with the market bottoming near its July lows. The strong rally that ensued for the remaining weeks of October carried the S&P 500 to the 885 level, producing an 8.79% total return for the month. PERFORMANCE From inception July 1, 2002 through October 31, 2002, IDEX Protected Principal Stock returned 0.10%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (9.99)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW IDEX Principal Protected Stock employs multiple risk management techniques to limit investment volatility well below that of many equity funds, even before the guarantee feature becomes a factor. The first risk management feature the fund employs is broad diversification. The fund's core strategy involves the ownership of all of the stocks represented in the S&P 500. The next step is to sell cash settled index call options, which serve as the primary source of return. This continuous generation of cash flow provides the fund with a consistent return in exchange for any future upside appreciation of the fund's underlying stocks. This cash flow does vary over time and is somewhat limited in its ability to adequately protect the fund during a sudden, sharp sell-off. Therefore, the next risk management step is the purchase of index put options to behave as a "safety net" to reduce the exposure of the portfolio during such a market decline. The final feature is the Principal Protection Guarantee itself. Please see the prospectus for a discussion of the funds investing and guarantee features. OUTLOOK The capital markets have begun what appears to be a transitional phase. Indicators tend to point to a bottoming process in the equity markets. Bond returns over the past three years are so spectacular that, given the cyclicality of interest rates, they present little hope of a repeat performance. During this period, secularly falling interest rates have provided a considerable lift to bond rates of return. Most recently, in September the 10-year U.S. Treasury note reached a 40 plus-year low interest rate of 3.6%. While bonds have done well over the past several years, the time to pass the baton is near. However, with valuation uncertainties and a weak economic recovery unfolding, it does not appear that equities are quite ready to run with it. IDEX Protected Principal Stock, a solid core investment due to its ability to preserve wealth, presents an attractive investment. Extraordinarily high cash flows from index call options suggest a favorable risk/reward opportunity in the near future. It is our objective to deliver these cash flows as efficiently as possible. /s/ J. PATRICK ROGERS J. PATRICK ROGERS Fund Manager Gateway Investment Advisers, L.P. 54 IDEX MUTUAL FUNDS NOTE: This fund is closed to new investors. ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. [CHART] CAPITAL PRESERVATION A conservative investment strategy characterized by a desire to avoid risk of loss. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date --------- --------- Class A (NAV) 0.10% 7/1/02 Class A (POP) (5.41)% 7/1/02 S&P 500(1) (9.99)% 7/1/02 Class B (NAV) 0.10% 7/1/02 Class B (POP) (4.90)% 7/1/02 Class C (NAV) 0.10% 7/1/02 Class M (NAV) 0.10% 7/1/02 Class M (POP) (1.89)% 7/1/02
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost if redemption occurs before the Guarantee Maturity Date. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments that utilize options strategies may be subject to specific risks, including limited opportunity to participate in rising stock markets or increased risk during market declines. In general, mutual funds that invest in stocks are subject to risks including weaknesses in the market as a whole, in a particular industry, or in a specific holding, and from adverse political or economic developments here or abroad. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Standard & Poor's 500 Depositary Pharmaceuticals 10.1% Receipt 4.0% Commercial Banks 9.3% Microsoft Corporation 3.1% Computer & Data Processing General Electric Company 2.7% Services 5.3% Wal-Mart Stores, Inc. 2.6% Computer & Office Equipment 4.3% Exxon Mobil Corporation 2.5% Insurance 4.2%
This material must be preceded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 55 ANNUAL REPORT 2002 IDEX SALOMON ALL CAP OBJECTIVE/FOCUS Long-term growth of capital by investing fund assets principally in common stocks and convertible securities. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The unwinding of the stock market bubble in 2000 and over-capacity that affects a number of industries continues to be an influence. The terrorist attacks of September 11, 2001, further disrupted the U.S. economy, even though a strong rally developed between late September of that year and early 2002. However, several other developments have been center stage in explaining the stock market's performance this year. The late 1990s was a period of excess but in ways that we feel transcended valuation alone. Corporate governance, a term rarely heard until recently, came to refer to many things including liberal and misleading accounting. We witnessed many chief executive officers get hired between 1995 and 2000 who were more attuned to their stock options and techniques to elevate their share prices than understanding their companies' business plans. All of the above we believe, led to a sharp reduction in stock market valuations, exacerbated by redemptions from mutual funds. In a way, a "perfect storm" of events hammered the stock market in 2002. PERFORMANCE For the year ended October 31, 2002, IDEX Salomon All Cap returned (23.44)%, as compared to its benchmark, the Russell 3000 Index, which returned (14.35)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW We have been through the bear markets of 1973-1974, 1982, 1987, 1990, and what looked like a significant market bottom in late September 2001. This year, the fund maintained cash positions of 12-15% as late as May. Because we believed we were approaching the end of this bear market, we began to commit assets to companies with share prices that had reached what we deemed to be attractive valuations. Our strategy in recent months has been to emphasize the corporate side of the economy not the consumer side. This means that we bought industrials, capital goods manufacturers for the fund and we went off of our "technology-free diet" of 2000. The NASDAQ Composite Index, which is heavily laden with technology companies, peaked just over 5,000 in early 2000 and in recent months has traded between 1,200-1,600. At this level, many leading technology stocks had declined approximately 60-90% from their highs a few years earlier. In addition, we thought a number of media stocks, including cable companies, had become very attractive long-term investments. OUTLOOK Although we think the market is near a bottom, we also believe the bottoming process could take some time because of circumstances in the all-important corporate sector of the economy. The interesting buys we feel are not in the consumer side of the economy. As a result of these considerations, we will buy stocks for the fund that we think are outstanding long-term buys, but will do so over time. Secondly, the current market environment has exposed some companies as having less attractive prospects than previously believed. These assets will be reviewed and may be exchanged for companies believed to have better opportunities in the coming years. We are often asked about the catalyst that would generate a better market environment. Though catalysts are often difficult to anticipate early on, clearing up uncertainty with regard to Iraq probably heads everyone's most likely "catalyst" list. Our candidate for "catalyst" is the price of oil falling to the $18-$22 per barrel level, regardless of whether we go to war with Iraq or not. In our opinion, a decline from the current $26-$28 per barrel range would represent, in effect, a major tax cut for the world economy, especially the emerging market economies most dependent on oil. /s/ JOHN G. GOODE JOHN G. GOODE /s/ PETER J. HABLE PETER J. HABLE Co-Fund Managers Salomon Brothers Asset Management Inc 56 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. [CHART] SALES LOAD Expressed usually as front-end, back-end or level load. Front-end load is a percentage charged on purchases through the Public Offering Price. Back-end load is a percentage deducted from redemptions. Level load is deducted from fund assets over time. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (23.44)% 2.39% 3/1/99 Class A (POP) (27.65)% 0.83% 3/1/99 Russell 3000(1) (14.35)% (6.57)% 3/1/99 Class B (NAV) (24.11)% 1.70% 3/1/99 Class B (POP) (27.90)% 1.18% 3/1/99 Class C (NAV) (24.11)% (3.01)% 11/1/99 Class M (NAV) (24.00)% 1.81% 3/1/99 Class M (POP) (25.52)% 1.53% 3/1/99
NOTES (1) The Russell 3000 (Russell 3000) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in a "non-diversified" fund may be subject to specific risks such as susceptibility to single economic political, or regulatory events, and may be subject to greater loss than investments in a diversified fund.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Countrywide Credit Industries, Inc. 2.7% Pharmaceuticals 15.3% Liberty Media Corporation - Class A 2.6% Insurance 8.5% Abbott Laboratories 2.5% Motion Pictures 7.4% AOL Time Warner Inc. 2.5% Communication 6.0% American Express Company 2.4% Electronic Components & Accessories 5.8%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 57 ANNUAL REPORT 2002 IDEX SALOMON INVESTORS VALUE (FORMERLY IDEX NWQ VALUE EQUITY) OBJECTIVE/FOCUS Maximum total return with minimum risk through investments primarily in common stocks showing above average statistical value and are in fundamentally attractive industries. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The U.S. equity market continued its downward trend during the twelve months ended October 31, 2002, as both the Standard and Poor's 500 Composite Stock Index ("S&P 500") and the NASDAQ Composite Index posted double-digit losses for the period. Throughout the spring and summer, investor concerns on numerous fronts, particularly regarding corporate governance and accounting issues, weighed down the major market indices. New allegations of corporate fraud and insider trading shook the market further. As we moved into the fall, we found investors worried about more fundamental concerns, including the strength of the economy and corporate earnings. The prospect of a potential war with Iraq also dampened investor sentiment. PERFORMANCE For the year ended October 31, 2002, IDEX Salomon Investors Value returned (16.90)%, as compared to its benchmark, the S&P 500, which returned (15.10)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW The fund's underperformance related primarily to security selection in the consumer staples and utilities sectors. In consumer staples, the fund's investment in Safeway Inc., in particular, penalized performance. Safeway Inc. and other food retailers are suffering from weak top-line growth, which has caused the companies to reinvest in pricing initiatives in order to remain competitive. We view this issue as more cyclical in nature as a result of the weak economy and expect fundamentals to improve as the economy recovers. In the utilities sector, the fund's exposure to El Paso Corporation hurt performance. Throughout the spring and early summer, the fund added modestly to selected technology and telecom stocks. As value investors, we are very willing to look for opportunities in sectors that are out of favor. Our focus was on companies with an attractive valuation, strong balance sheet and leading market position. Although we recognized that technology and telecom stocks could have further downside, we wanted to position the fund to participate in any potential recovery in those sectors. As we moved into the summer months, as a result of the breadth of the market sell-off, we started to see additional opportunities in areas beyond technology and telecom. In particular, the fund added to stocks in the health care, consumer cyclicals and energy sectors. Within the health care sector, we found that several drug stocks were trading at 10-year valuation lows in July. We also sought to upgrade the quality of our holdings. Because of the broad-based sell-off, we had an opportunity to add what we believed to be several high-quality companies at attractive valuations. Finally, we began to focus more on dividend yields. In an environment where we feel equity market returns will likely revert to more historical levels, dividend yields should represent a greater component of total returns. OUTLOOK Given current interest rate levels and equity market valuations, we remain constructive on the U.S. equity market. Although recent economic reports have brought into question the sustainability of the economic recovery, we still expect continued economic growth, albeit at a slower pace than envisioned earlier this year. Thus far, in our opinion, the consumer has remained fairly resilient, thanks in part to record low mortgage rates. Of course, what we believe the economy needs now is business spending to accelerate, which we expect to occur gradually over the next few quarters as corporate profits improve. Although certain events, particularly a potential conflict with Iraq, could lead to further equity market volatility, we believe the fund is well positioned in the current market environment. /S/ JOHN B. CUNNINGHAM JOHN B. CUNNINGHAM /S/ MARK J. MCALLISTER MARK J. MCALLISTER Co-Fund Managers Salomon Brothers Asset Management, Inc. NOTE: Effective March 1, 2002, Salomon Brothers Asset Management, Inc. replaced NWQ Investment Management Company, Inc. as sub-adviser to the fund. At that time, IDEX NWQ Value Equity changed its name to IDEX Salomon Investors Value. 58 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. [CHART] VALUE INVESTING Value style investing is an approach to identify securities that are undervalued in the present market environment without concentrating too much on future expectations. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------ ------ --------- --------- Class A (NAV) (16.90)% (1.71)% 1.26% 2/1/97 Class A (POP) (21.47)% (2.82)% 0.27% 2/1/97 S&P 500(1) (15.10)% 0.73% 3.57% 2/1/97 Class B (NAV) (17.47)% (2.33)% 0.63% 2/1/97 Class B (POP) (21.60)% (2.53)% 0.46% 2/1/97 Class C (NAV) (17.47)% - (3.19)% 11/1/99 Class M (NAV) (17.35)% (2.23)% 0.73% 2/1/97 Class M (POP) (19.00)% (2.43)% 0.56% 2/1/97
NOTES (1) The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ------------------------------------- Hewlett-Packard Company 2.4% Commercial Banks 11.3% Verizon Communications, Inc. 2.2% Security & Commodity Brokers 7.3% Nokia Oyj - ADR 2.1% Telecommunications 7.0% AT&T Wireless Services, Inc. 2.1% Communications Equipment 6.0% Pharmacia Corporation 2.0% Computer & Office Equipment 5.4%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 59 ANNUAL REPORT 2002 IDEX T. ROWE PRICE HEALTH SCIENCES OBJECTIVE/FOCUS Long-term growth of capital by investing primarily in common stocks of companies engaged in research, development, production, or distribution of products or services related to healthcare, medicine, or the life sciences. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT Certainly the equity market endured another difficult year, beginning with the aftermath of the September 11th terrorist attacks in the U.S., encompassing a stiff economic slowdown and stunning revelations of corporate misconduct, and concluding with an uncertain earnings environment and talk of war with Iraq. For several months, it seemed that the health care segment would fare significantly worse than the overall market. As a high-risk investment area, biotechnology became extremely unpopular during the summer. Meanwhile, investors punished high-priced pharmaceuticals stocks as they struggled with patent expirations and other severe earnings challenges. For most of the year, only the once- quiescent health care services sector stood its ground on the strength of a relatively stable earnings picture. In the last few months of the period, however, sector performance trends changed significantly. Investors seemed to feel that biotech and the drug stocks were oversold, and triggered a modest rally. The services stocks deflated in tandem as the period closed. For these reasons, a diversified investment approach proved highly beneficial during the period. PERFORMANCE From inception, March 1, 2002, through October 31, 2002, IDEX T. Rowe Price Health Sciences returned (17.20)%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (19.11)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW The past twelve months were difficult for the market as a whole, and the health care sector was not spared in the downdraft. Our strategy for the year was to maintain a focus on biotechnology - the area we believe offers the best long-term potential - while balancing the risks in this higher-growth segment with more stable-earning positions in health care services. Our results reflected some success in this effort. Our current position in biotechnology stands at approximately 40% of assets. This segment imposed the toughest losses on the fund for the period, with only a few holdings - notably Gilead Sciences, Inc. - staying in the black. We believe that biotechnology holds the greatest long-term potential of all the health care segments, and as a result we have consistently invested the greatest portion of assets here. Our commitment was validated in October, however. As biotech recovered, we were positioned to benefit fully from the advance. Our stock selection was also relatively effective during the rally compared with the competition. Cephalon, Inc. and Trimeris, Inc. were large positions that contributed to results. Our pharmaceuticals position remains a significant portion of our assets. After suffering dramatic losses earlier in the year, the major drug companies began to look inexpensive to many market observers, and the segment benefited from renewed interest and bargain hunting. Despite the turnaround, only a few positions were positive contributors for the year; others, including Wyeth, dropped steeply during the period. Relatively defensive health care services and providers accounted for nearly a third of assets as the period ended. For the year as a whole, these holdings posted strong, double-digit gains. As biotech, pharmaceuticals, and other growth-oriented fare began in improve, however, support for health care services waned, and investors began to take profits in stocks that had fared relatively well during the bulk of the 2002 bear market. We were stung by a position in Tenet Healthcare Corporation, a health care provider that was hit by allegations of fraud late in the period. OUTLOOK Our view has been that once the economy and stock market began to stabilize, and investors turned their attention to growth stocks, health care would be a major benefactor. Market activity in October seemed to support our point of view, and we were especially encouraged by the strong results of biotechnology in the rally. It is too soon to say that October's trends will persist, and the market faces many more hurdles in coming months. However, we continue to believe that health care remains an area of tremendous future growth potential. /s/ Kris H. Jenner Kris H. Jenner Fund Manager T. Rowe Price Associates, Inc. 60 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. SPECIALTY FUND A mutual fund investing primarily in the securities of a particular industry, sector, type of security or geographic region. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date --------- --------- Class A (NAV) (17.20)% 3/1/02 Class A (POP) (21.75)% 3/1/02 S&P 500(1) (19.11)% 3/1/02 ------ ------ Class B (NAV) (17.60)% 3/1/02 Class B (POP) (21.72)% 3/1/02 ------ ------ Class C (NAV) (17.60)% 3/1/02 ------ ------ Class M (NAV) (17.60)% 3/1/02 Class M (POP) (19.24)% 3/1/02 ------ ------
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investments in a "non-diversified" fund may be subject to specific risks such as susceptibility to single economic, political, or regulatory events, and may be subject to greater loss than investments in a diversified fund. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ------------------------------------------ ---------------------------------------- UnitedHealth Group Incorporated 5.7% Pharmaceuticals 63.8% Trimeris, Inc. 5.5% Insurance 11.7% Cephalon, Inc. 4.8% Health Services 7.6% Anthem, Inc. 4.7% Medical Instruments & Supplies 5.0% Gilead Sciences, Inc. 4.4% Chemicals & Allied Products 3.3%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 61 ANNUAL REPORT 2002 IDEX T. ROWE PRICE SMALL CAP OBJECTIVE/FOCUS Long-term growth of capital by investing in common stocks of small-cap growth companies and stock index futures. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT One year ago, in the wake of the September 11th terrorist attacks, the economy was clearly in a recession. Unemployment was rising, industrial production was falling, and gross domestic product (GDP) growth was negative. In response, the Federal Reserve Board ("Fed") opened the monetary spigot further and slashed the federal funds target rate to 1.75%, compared with 6.50% at the end of 2000. In the early months of 2002, stocks rose as the economy seemed to be on the road to recovery. But as the year progressed, the economy faltered, business investment paused, earnings growth remained sluggish, and corporate accounting scandals undermined investor confidence, sending stocks into a tailspin. Growing fears of a military conflict with Iraq and weaker consumer sentiment contributed to the economic uncertainty. Many small-cap growth sectors declined over the past year. Information technology shares fared worst, led by software and semiconductor-equipment companies. Health care stocks, led by biotechnology shares, also slumped, but health care providers and service companies bucked the negative trend. On the plus side, in the consumer discretionary sector, companies that make furniture performed very well, and media stocks overcame earlier weakness and produced good returns. Financial stocks, namely banks and insurers, also fared well. PERFORMANCE For the year ended October 31, 2002, IDEX T. Rowe Price Small Cap returned (17.22)% as compared to its benchmark, the Russell 2000 Growth Index, which returned (11.57)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW The fund remained well diversified across approximately 300 names, and only a small number of our holdings exceeded 1% of fund assets. This broad diversification has helped us weather the vicious declines in various small-cap growth sectors over the past year and enabled us to have some exposure to areas that have held up well. Media stocks in the consumer discretionary sector produced strong returns in the last twelve months. Among our best holdings in this area were Radio One, Inc., Westwood One, Inc., and Emmis Communications Corporation. Bank stocks in the financial sector also performed well; UCBH Holdings, Inc. and Commerce Bancorp, Inc. were two of our top contributors to fund performance. Information technology stocks fared poorly throughout the last year, despite a significant rebound in October. Semiconductor and communications equipment companies topped the list of our worst performers. In contrast, Zebra Technologies Corporation and Inter-Tel, Incorporated produced strong gains and were among our largest contributors to performance. Health care stocks were mostly lower, as mentioned earlier, and biotechnology companies Abgenix, Inc. and OSI Pharmaceuticals, Inc. detracted substantially from our results. But our positions in Patterson Dental Company, ICU Medical, Inc., and Accredo Health, Incorporated greatly added value over the last year, helping the fund's relative performance. OUTLOOK The performance of small-cap growth stocks has been disappointing this year, but in light of the market rebound that started in early October and the Fed's larger-than-expected interest rate reduction on November 6, we are optimistic that the worst is behind us. Valuations in some segments are still at very attractive levels, corporate earnings are improving, and measures to punish and prevent corporate malfeasance are being implemented, which should help boost investor confidence. Over time, we believe that the performance of small-cap growth stocks will improve as it becomes clear that economic and earnings recoveries are taking hold. /S/ PAUL W. WOJCIK Paul W. Wojcik Fund Manager T. Rowe Price Associates, Inc. 62 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. CAPITALIZATION Capitalization, usually referred to as "cap", is the total market value of a company's outstanding shares. Small cap is typically less than $1.5 billion, mid cap is $1.5 - $10 billion and large cap is more than $10 billion. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (17.22)% (5.85)% 3/1/99 Class A (POP) (21.77)% (7.29)% 3/1/99 Russell 2000(1) (11.57)% 0.01% 3/1/99 ------- ------ ------- Class B (NAV) (17.85)% (6.50)% 3/1/99 Class B (POP) (21.95)% (7.02)% 3/1/99 ------- ------ ------- Class C (NAV) (17.85)% (10.70)% 11/1/99 ------- ------ ------- Class M (NAV) (17.76)% (6.40)% 3/1/99 Class M (POP) (19.39)% (6.66)% 3/1/99 ------- ------ -------
NOTES 1 The Russell 2000 (Russell 2000) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investing in small cap stocks generally involves greater risks and volatility so an investment in this fund may not be suitable for everyone.
Five Largest Holdings (% of Net Assets) Top Five Industries (% of Net Assets) - --------------------------------------- ------------------------------------- Corporate Executive Board Computer & Data Processing Company (The) 1.1% Services 9.3% SCP Pool Corporation 1.1% Pharmaceuticals 9.2% Too, Inc. 1.1% Health Services 5.2% Iron Mountain Incorporated 1.0% Oil & Gas Extraction 5.2% Accredo Health, Incorporated 1.0% Electronic Components & Accessories 4.8%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 63 ANNUAL REPORT 2002 IDEX T. ROWE PRICE TAX-EFFICIENT GROWTH (FORMERLY IDEX T. ROWE PRICE DIVIDEND GROWTH) OBJECTIVE/FOCUS Long-term capital appreciation on an after-tax basis by investing primarily in large-cap stocks. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT Despite strong gains in October, large-cap growth stocks fell in the one-year period ended October 31, 2002, as the economy struggled and investors were concerned about the possibility of a military conflict with Iraq. Sluggish earnings growth and disgraceful behavior by some prominent corporate executives also undermined investor confidence. Most major sectors declined, but the consumer staples sector held up well. PERFORMANCE For the year ended October 31, 2002, IDEX T. Rowe Price Tax-Efficient Growth returned (15.20)%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index ("S&P 500") which returned (15.10)% for the same period. This period included several months of performance before the transition to our new tax-efficient mandate. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW The portfolio is well diversified across about 100 companies and structured much like other growth funds as measured by the Lipper Large-Cap Growth Fund Index, though the average market capitalization of our holdings is somewhat higher. As shown in the table above, the fund is more growth-oriented than the S&P 500, as reflected by its higher historical earnings growth rate, lower dividend yield, and higher price/earnings (P/E) ratio on anticipated earnings. The fund's projected earnings growth, dividend yield, and anticipated volatility are similar to those of the Lipper benchmarks, but its P/E ratio is slightly higher. This reflects our commitment to owning companies whose earnings growth has been historically strong and, in our opinion, can be sustained over time. One of the most important measures for us is return on equity (ROE), and we look for companies with return on capital that is high and sustainable, and not excessively tied to the business cycle. As shown in the table, the ROE of your fund's holdings was notably higher than all of its benchmarks. This reflects our intention to maintain a portfolio of companies with strong profitability that should perform relatively well during favorable and unfavorable periods for both the economy and the stock market. At the end of October, the fund emphasized the consumer discretionary, technology, health care, and financial sectors. Consumer staples and industrial and business services stocks represented lesser percentages. We generally avoid telecommunications, energy, and utility companies because they seldom offer good growth prospects and high, sustainable returns on equity. The portfolio's structure and holdings are very different compared with one year ago. When the fund adopted its new mandate in March, we eliminated many of our holdings and replaced them with shares of large-cap growth companies that are market leaders within their niches and could be owned over the long term. We specifically sought companies with strong, sustainable market positions and high returns on capital because we believe their performance will be superior over the long term. One of our primary objectives is to maintain greater tax efficiency than our competitors over time by avoiding capital gain distributions for as long as possible. (If we succeed, the fund's after-tax relative performance will be even better than pretax results would suggest.) Toward that end, we aggressively "harvest" losses by selling stocks that have dropped in value, realizing capital losses on behalf of our shareholders. Through the end of October, we have built up a loss carryforward of 6.8% of fund assets, which can be used to offset future gains and maintain a high level of tax-efficiency. OUTLOOK The stock market's rebound since early October and the Federal Reserve Board's larger-than-expected interest rate reduction on November 6, 2002, are encouraging developments. We believe that, in an environment of generally sluggish economic and corporate profit growth, equity investors will be likely to seek out companies with strong earnings growth. If this proves to be true, our focus on firms with strong profitability should give us an advantage. Stock valuations by many measures are attractive, and investors who want long-term capital appreciation should consider this to be a good opportunity to purchase companies with the potential for sustainable earnings growth and profitability. We believe that such companies are the best investments for those with long time horizons, and we will continue to use intensive research to identify businesses with the best prospects while attempting to produce attractive long-term after-tax returns. /S/ DONALD J. PETERS Donald J. Peters /S/ HUGH D. MCGUIRK Hugh D. McGuirk Co-Fund Managers T. Rowe Price Associates, Inc. 64 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. YIELD The percentage rate of return attributed to dividends or interest earned on an investment. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (15.20)% (5.25)% 3/1/99 Class A (POP) (19.86)% (6.70)% 3/1/99 S&P 500(1) (15.10)% (7.50)% 3/1/99 ------- ------ ------- Class B (NAV) (15.84)% (5.89)% 3/1/99 Class B (POP) (20.05)% (6.41)% 3/1/99 ------- ------ ------- Class C (NAV) (15.84)% (7.76)% 11/1/99 ------- ------ ------- Class M (NAV) (15.71)% (5.78)% 3/1/99 Class M (POP) (17.39)% (6.04)% 3/1/99 ------- ------ -------
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ----------------------------------------- Microsoft Corporation 4.0% Pharmaceuticals 15.6% Pfizer Inc. 3.4% Commercial Banks 9.1% General Electric Company 3.0% Electronic Components & Viacom, Inc. - Class B 3.0% Accessories 8.9% Citigroup Inc. 2.8% Business Services 8.8% Computer & Data Processing Services 7.0%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 65 ANNUAL REPORT 2002 IDEX TRANSAMERICA CONSERVATIVE HIGH-YIELD BOND (FORMERLY IDEX AEGON INCOME PLUS)
Credit Quality of Bonds (% of Net Assets) S&P ------------------------ A 5.7% BBB 24.9% BB 26.1% B 27.8% All C's 3.6% D 0.6% NR 0.5%
Credit Quality of Bonds (% of Net Assets) Moody's ------------------------ A2 3.0% A3 5.2% B1 4.7% B2 12.6% B3 9.7% Ba1 10.5% Ba2 9.6% Ba3 6.2% Baa1 3.4% Baa2 9.9% Baa3 9.7% Ca 0.8% Caa1 3.6% NR 0.3%
OBJECTIVE/FOCUS High current income while avoiding excessive risk by investing primarily in fixed-income. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT During April we began in earnest to restructure the fund to reflect our change to IDEX Transamerica Conservative High-Yield Bond. As is usually the case with transitions such as these, the regulatory approvals etc., that are needed, can potentially result in the transition being put into place during a less than opportune time in the marketplace. In March and April the High Yield market was extremely overvalued, which made us reluctant to re-balance the portfolio too quickly. However, our research indicates that the overvaluation has dissipated. In fact, High Yield securities have become seriously under-valued, and we are now aggressively re-balancing the fund's assets to take advantage of this shift in market conditions. PERFORMANCE For the year ended October 31, 2002, IDEX Transamerica Conservative High-Yield Bond returned (8.48)% as compared to its benchmark, the Merrill Lynch High Yield Master Index, which returned (5.79)% for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Performance within the high yield market was mixed with Wireless, Gaming, Energy-Independent, Railroads and Food/Beverage providing the best relative performance during the third quarter. The worst performing sectors included Textiles, Refining, Technology, Transportation-Airlines and Utilities. Under-performance in these sectors continues to be driven by concerns over liquidity, lack of earnings and cash flow growth, and accounting fraud. We have been aggressive buyers of high yield during the months of August, September, and October. This brings our current HY percentage to 60%. We believe we should be at 65% very shortly. OUTLOOK Major market bottoms are always difficult to time exactly. However, there are times when you're "paid-to-play." Barring a Japanese type deflationary scenario, this appears to be one of those times. Market bottoms are characterized by four factors: 1. There must be severe loss and pain. 2. No one believes the market can ever come back and be the same as it once was. 3. Valuation is exceedingly cheap. 4. There is forced selling. These four factors now dominate the investment grade corporate market. The pain has been all too obvious, most Wall Street corporate strategists are negative or indifferent, valuation of corporate bonds now imply a default rate of 4%, and many financial firms are being forced to sell due to ratings optics. The long-term risk reward for this sector is exceedingly in favor of reward. /S/ DAVID R. HALFPAP David R. Halfpap /S/ BRADLEY J. BEMAN Bradley J. Beman Co-Fund Managers AEGON USA Investment Management, LLC 66 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index over the past 10-year period. INVESTMENT GRADE OR JUNK? Investment grade securities are those with credit ratings of BBB/Baa or above as determined by Standard & Poor's and Moody's, respectively. Securities rated below this level are what the industry refers to as speculative or "junk bonds". AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year 10 year Inception Date ------ ------ ------- --------- --------- Class A (NAV) (8.48)% 1.37% 5.46% 7.96% 6/14/85 Class A (POP) (12.82)% 0.39% 4.95% 7.66% 6/14/85 MLHYM(1) (5.79)% 0.15% 5.86% 8.61% 6/14/85 ------ ---- ---- ---- ------- Class B (NAV) (9.03)% 0.73% -- 3.36% 10/1/95 Class B (POP) (13.58)% 0.54% -- 3.36% 10/1/95 ------ ---- ---- ---- ------- Class C (NAV) (9.03)% -- -- 0.14% 11/1/99 ------ ---- ---- ---- ------- Class M (NAV) (8.95)% 0.84% -- 3.80% 10/1/93 Class M (POP) (10.76)% 0.64% -- 3.69% 10/1/93 ------ ---- ---- ---- -------
NOTES 1 The Merrill Lynch High Yield Master (MLHYM) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ------------------------------------------ --------------------------------------- Westar Energy, Inc. 05/01/2007 2.8% Electric Services 9.4% ArvinMeritor, Inc. 03/15/2008 2.6% Oil & Gas Extraction 8.8% People's Bank 12/01/2006 2.4% Automotive 7.5% Louisana Land and Exploration Savings Institutions 4.4% Company (The) 04/15/2013 2.2% Business Credit Institutions 3.9% PDVSA Finance Ltd. 02/15/2004 2.1%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 67 ANNUAL REPORT 2002 IDEX TRANSAMERICA CONVERTIBLE SECURITIES
Credit Quality of Bonds (% of Net Assets) S&P ------------------------ AAA 4.2% AA 2.5% A 10.7% BBB 17.7% BB 6.0% B 12.3% NA 6.5%
Credit Quality of Bonds (% of Net Assets) Moody's ------------------------- A1 6.3% A2 1.4% A3 1.9% Aa1 2.5% Aaa 1.6% B1 1.5% B2 1.7% B3 5.4% Ba1 1.9% Ba3 2.2% Baa1 7.2% Baa2 4.3% Baa3 5.2% Caa1 2.8% NA 14.0%
OBJECTIVE/FOCUS Maximum total return through a combination of current income and capital appreciation through investment primarily in convertible securities. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT For equities, the eight months since the inception of the fund on March 1, 2002, were an extremely tumultuous period. The Standard and Poor's 500 Composite Stock Index lost (19.11)%. For convertibles, which are sensitive to the equity markets, the period was also negative, but less so. The bond-like qualities of convertibles - their guarantee of periodic income and pricing that adjusts with changing yields - mitigated the downward pressures to some extent. Between March and October, yields on corporate bonds first rose then declined rapidly. Since prices on corporate securities, including convertibles, move in the opposite direction of their yields, convertibles prices rose in the final months of the period. PERFORMANCE From inception March 1, 2002 through October 31, 2002, IDEX Transamerica Convertible Securities returned (5.42)%, as compared to its benchmark, the Merrill Lynch All U.S. Convertibles Index, which returned (10.16)% for the same period. We attribute the above-average results to our defensive approach to the convertibles market during this period of instability. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW As the fund opened for business, we had already concluded that investment returns would be asymmetrical this year; the opportunity for gain would be limited, while the potential for loss would be substantial. Confronted with corporate fraud, bankruptcies and inconclusive economic data, equity investors were more than just cautious - they became increasingly unforgiving, punishing a company's securities at the first sign of trouble or earnings weakness. And their skepticism essentially put a lid on price gains, even for companies that were trouble free. In light of this, we decided to limit the downside risk to investors. Buying primarily higher-quality convertible securities, we avoided any company with accounting or management issues. Our tolerance for these "red flags" was nil, whereas in a more friendly market environment we might have invested selectively in lower-quality companies. From the standpoint of total return, it was a good move. None of our holdings suffered extraordinary losses, and a sizable percentage remained in positive territory. Among them was defense contractor Northrop Grumman Corporation, whose shares were buoyed by the continued outlook for increased defense spending in the United States. Another contributor was Affiliated Computer Services, Inc. ("Affiliated"), a business process outsourcing provider. Affiliated is a good example of our ideal candidate for investment. The company stands to benefit from change - in this case, the trend among businesses, especially small to medium-sized companies, to outsource costly functions that are not key to earning a profit (e.g., payroll and employee benefits). The business generates free cash flow, and the management team has reinvested that cash to build the business, wresting market share from Affiliated's competitors. The one drawback to our risk-averse stance was the impact on the fund's yield. Higher-quality securities generally have lower coupons than lesser-quality issues, so the fund's current yield declined over the period as we added more high-rated securities. OUTLOOK At this juncture, we believe that the much-anticipated economic recovery is not likely to materialize until mid-2003. In the interim, a falloff in consumer spending could actually produce worse, not better, economic data for the final months of 2002. If we are correct, the equity markets will likely remain depressed and convertible securities should continue to outperform stocks for several more calendar quarters. For convertibles, 2003 should be a moderately positive year. /S/ KIRK J. KIM KIRK J. KIM /S/ GARY U. ROLLE GARY U. ROLLE Co-Fund Managers Transamerica Investment Management, LLC 68 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. CONVERTIBLE SECURITY A bond or preferred stock that is exchangeable at the option of the holder for common stock of the issuing corporation. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception Inception Date --------- --------- Class A (NAV) (5.42)% 3/1/02 Class A (POP) (9.91)% 3/1/02 MLUSConv.(1) (10.16)% 3/1/02 ------ ------ Class B (NAV) (5.68)% 3/1/02 Class B (POP) (10.40)% 3/1/02 ------ ------ Class C (NAV) (5.68)% 3/1/02 ------ ------ Class M (NAV) (5.64)% 3/1/02 Class M (POP) (7.52)% 3/1/02 ------ ------
NOTES 1 The Merrill Lynch All U.S. Convertibles (MLUSConv.) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C) Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ----------------------------------------- ----------------------------------------- Xerox Corporation 04/21/2018 3.5% Insurance 14.8% Echostar Communications Pharmaceuticals 8.9% Corporation 01/01/2007 2.8% Health Services 6.5% Northrop Grumman Corporation 2.6% Oil & Gas Extraction 6.0% Allergan, Inc. 11/01/2020 2.5% Computer &Office Equipment 5.1% Washington Mutual, Inc. - Units 2.5%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 69 ANNUAL REPORT 2002 IDEX TRANSAMERICA EQUITY OBJECTIVE/FOCUS Long-term growth by investing in domestic common stocks of companies which are considered to be under-valued in the stock market. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The large-cap equity market continued to pay for the excesses of the late 1990s. When large amounts of capital flow into an industry, competition heats up, prices plummet and corporate earnings come under pressure. This is what happened to many larger businesses before 2000, especially technology and telecommunications companies. Since then, the large-company universe has begun correcting the imbalances. Many corporations focused this year on reducing debt levels and capital expenditures and selling assets that cannot generate solid returns on capital in the near term. At the same time, businesses struggled against a weak economy that reduced demand. And they contended with widely publicized bankruptcies and corporate fraud that heightened investors' concerns about whether corporate America could generate earnings growth. Investor sentiment turned increasingly negative. PERFORMANCE For the year ended October 31, 2002, IDEX Transamerica Equity returned (13.50)%, as compared to its benchmark, the Standard and Poor's 500 Composite Stock Index, which returned (15.10)% for the same period. Roughly one-third of our holdings posted gains, but these were not sufficient to outweigh small losses for most of the remaining stocks and sizable downturns for several others. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW Boosting results were holdings from a variety of sectors, including Moody's Corporation ("Moody's"), and First Data Corporation (diversified financial), Expeditors International of Washington, Inc. and United Parcel Service, Inc. (transportation), and MBNA Corporation (banking). As varied as the businesses of these companies are, they share at least three key attributes. First, their business models hold up well in a deflationary environment. Either they are businesses that become relatively more attractive to consumers in a poor economy, or they have strong pricing power. Moody's, the fund's top performer during the period, is a good example of the latter. As one of only two major U.S. agencies with federal government approval to provide credit ratings on bonds, Moody's benefited from restricted competition and a surge in both domestic and worldwide demand for its services. Second, these companies generate free cash flow, which allows them to repurchase stock and/or finance growth with cash instead of debt. Finally, their industries did not attract massive amounts of capital in the `90s, so they are not plagued by overcapacity. The largest disappointments in the portfolio were VeriSign, Inc. ("VeriSign") (computer and data processing services), Safeway Inc. ("Safeway") and Rite Aid Corporation ("Rite Aid") (both food and drug stores). VeriSign mismanaged its basic Web site registration business, allowing competitors to make inroads. Meanwhile, corporate demand for a major product, public key infrastructure, fell. Earnings deteriorated substantially, management showed poor judgment, and we eliminated the position. Rite Aid and Safeway suffered from mispricing their products. Safeway kept prices high at a time when consumers were looking for bargains. And Rite Aid was forced by a surfeit of inventory to drop prices dramatically, squeezing its profit margins. OUTLOOK Corporate America is on its way to putting the "balance" back in balance sheets. Ultimately, this bodes well for the stock market and economy; as the liability side of balance sheets improves, investors will view stocks as less risky, and companies will increase spending on new plant and equipment. In contrast, consumers may tighten the purse strings. Having used the equity in their homes to buy larger homes and autos, they will likely focus more on paying off loans than purchasing new goods and services. Thus, despite the new corporate capital discipline, we anticipate slow economic progress at best and will continue to look for companies that can thrive in an anemic environment. /S/ JEFFREY S. VAN HARTE JEFFREY S. VAN HARTE /S/ GARY U. ROLLE GARY U. ROLLE Co-Fund Managers Transamerica Investment Management, LLC 70 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. AUTOMATIC INVESTMENT PLAN With the Automatic Investment Plan, money is regularly invested into a shareholder's fund account electronically from their bank account, taking advantage of dollar cost averaging. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) (13.50)% (19.94)% 3/1/00 Class A (POP) (18.25)% (21.62)% 3/1/00 S&P 500(1) (15.10)% (13.83)% 3/1/00 ------ ------ ------ Class B (NAV) (14.22)% (20.59)% 3/1/00 Class B (POP) (18.50)% (21.49)% 3/1/00 ------ ------ ------ Class C (NAV) (14.22)% (20.59)% 3/1/00 ------ ------ ------ Class M (NAV) (14.08)% (20.48)% 3/1/00 Class M (POP) (15.79)% (20.78)% 3/1/00 ------ ------ ------
NOTES 1 The Standard & Poor's 500 Composite Stock (S&P 500) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C)Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------------- --------------------------------------------- First Data Corporation 7.1% Business Services 17.7% Microsoft Corporation 4.9% Communication 10.8% Moody's Corporation 4.8% Commercial Banks 10.1% Expeditors International of Transportation & Public Utilities 7.9% Washington, Inc. 4.3% Computer & Data Processing United Parcel Service, Inc. - Class B 4.1% Services 4.9%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 71 ANNUAL REPORT 2002 IDEX TRANSAMERICA GROWTH OPPORTUNITIES (FORMERLY IDEX TRANSAMERICA SMALL COMPANY) OBJECTIVE/FOCUS Long-term growth by investing principally in equity securities such as common and preferred stocks, rights, warrants and securities convertible into or exchangeable for common stocks of small companies. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT U.S. equity markets were pummeled by corporate scandals. Several high-profile larger companies declared bankruptcy or disclosed that earnings had been inflated through aggressive accounting measures or fraud. As a result, investor sentiment, already tenuous after September 11th, turned decidedly negative. Also giving investors pause were the indolent economy and record debt levels, a combination that suggests reduced spending and slow economic growth as businesses and individuals pay down their loans in coming years. Although the corporate governance issues involved primarily larger companies, the persistent pressure on stocks was more bruising to smaller companies, which are considered more vulnerable to any uncertainty. PERFORMANCE For the year ended October 31, 2002, IDEX Transamerica Growth Opportunities returned 0.05%, as compared to its benchmark, the Russell 2000 Index, which returned (11.57)% for the same period. We attribute the index-beating results to our strategy, which emphasizes high-quality earnings backed up by visible cash flows, and businesses that can grow in any economic environment. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW As always, our portfolio was a mix of "secular growers," well-run companies with strong niches in industries expanding due to economic, consumer or demographic trends. The portfolio's diversity can be seen in the top contributors to performance, Expedia, Inc. ("Expedia") and Moody's Corporation ("Moody's"), as well as major detractors BARRA, Inc. ("BARRA") and DeVRY Inc. ("DeVRY"). Expedia, the travel booking Web site, was formed in 1999. Early on, analysis of Expedia's cash flow statement indicated a "virtual" business with advantages of scale and secular trends in its favor. The more hotels and airlines it adds to its network, the more powerful it becomes. Yet there is no commensurate rise in inventory, warehouses and other capital costs. What's more, earnings are consistently strong, thanks to the rapid growth of direct travel booking via the Internet. Already, Expedia is one of three dominant competitors in this nascent industry and won't be easily threatened by new competition; it would take a considerable investment to replicate the company's network and relationships. Moody's, in contrast, was founded in 1900. Yet, it too benefits from high barriers to competition and a powerful secular change. One of only two major U.S. credit-rating agencies, it is shielded by the fact that any new competitor would need a nod from the federal government. Demand for its service is growing worldwide, especially in Europe, where businesses increasingly shun banks in favor of more efficient capital sources. On the other end of the performance scale were BARRA, a provider of data and ratings of asset managers, and DeVRY, which trains technology technicians. Each is suffering from a cyclical business downturn. We believe the setbacks are temporary; the need for qualified investment advice and for IT technicians continues to grow. Both companies have little debt and substantial cash on hand, giving them the wherewithal to survive the present economic malaise. We have a high degree of confidence in their management teams and have used the recent price weakness to buy additional shares at attractive prices. OUTLOOK We expect a period of slow economic regeneration as businesses and individuals rein in spending and use cash to reduce debt. In the long run, that will create healthier balance sheets for companies and consumers. In the interim, it should move the market in our direction. The corporate governance and earnings-quality issues have left a mark on investors, who will continue to pay a premium for companies that can produce easily understood earnings and can finance growth without significantly increasing their debt levels. /S/ CHRISTOPHER J. BONAVICO CHRISTOPHER J. BONAVICO /S/ KENNETH F. BROAD KENNETH F. BROAD Co-Fund Managers Transamerica Investment Management, LLC 72 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Index on Class A's inception date. COST BASIS The "cost basis" of mutual fund shares is generally the amount paid for them, including all reinvested distributions. Whenever shares are sold from a taxable account, the cost basis is deducted from proceeds to determine the realized gain or loss, which must be reported on your income tax return. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year Inception Date ------ --------- --------- Class A (NAV) 0.05% (23.96)% 3/1/00 Class A (POP) (5.46)% (25.55)% 3/1/00 Russell 2000(1) (11.57)% (13.92)% 3/1/00 ----- ------ ------ Class B (NAV) (0.70)% (24.61)% 3/1/00 Class B (POP) (5.67)% (25.47)% 3/1/00 ----- ------ ------ Class C (NAV) (0.70)% (24.61)% 3/1/00 ----- ------ ------ Class M (NAV) (0.52)% (24.49)% 3/1/00 Class M (POP) (2.50)% (24.78)% 3/1/00 ----- ------ ------
NOTES (1) The Russell 2000 (Russell 2000) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C)Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Investing in small cap stocks generally involves greater risks and volatility so an investment in this fund may not be suitable for everyone.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- --------------------------------------------- Expedia, Inc. - Class A 6.4% Transportation & Public Utilities 17.1% Expeditors International of Computer & Data Processing Washington, Inc. 5.8% Services 9.4% BARRA, Inc. 5.8% Business Services 8.4% Robert Half International Inc. 5.3% Security & Commodity Brokers 8.2% Techne Corporation 4.9% Electronic Components & Accessories 6.1%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 73 ANNUAL REPORT 2002 IDEX TRANSAMERICA MONEY MARKET OBJECTIVE/FOCUS Maximum current income from money market securities consistent with liquidity and preservation of principal. MARKET ENVIRONMENT With inflation under control, a very accommodative Federal Reserve Board ("Fed") cut short-term interest rate twice in late 2001, in an effort to stave off recession after the September 11th terrorist attacks. The moves reduced short-term rates to the lowest levels since 1961 but could not prevent at least one quarter of economic contraction in the United States. Subsequently, the Fed assumed a wait-and-see attitude in early 2002 and officially moved to a neutral bias in April, based on early signs that the economy might pick up speed. Since then, the economy has remained tenuous; there were as many indications of further weakness as there were data pointing toward renewed growth. Against this backdrop, yields on short-term securities declined and remained at low levels. STRATEGY REVIEW The fund's first priority is to ensure safety and liquidity for it shareholders. With that objective in mind, we constructed a portfolio of high-quality securities: government, agency and, primarily, highly rated corporate securities known as commercial paper. As the period wound to a close, we were working to increase the fund's average maturity, in anticipation of additional interest-rate reductions. Lower rates would mean lower yields for shorter-term securities. OUTLOOK It appears that the economy may once again have stalled. Inflation, once a recurring theme for the economy, has been replaced with the possibility of deflation, or falling prices. Whatever the direction of the economy, we will continue to pursue a competitive yield, but always within the constraints of protecting investors' principal. /S/ EDWARD S. HAN EDWARD S. HAN /S/ HEIDI HU HEIDI HU Co-Fund Managers Transamerica Investment Management, LLC 74 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 MATURITY COMPOSITION 10/31/02 (ALL AMOUNTS IN THOUSANDS) [GRAPH] MONEY MARKET Market for short-term debt securities, such as banker's acceptances, commercial paper, repurchase agreements, negotiable certificates of deposit, and Treasury Bills with a maturity of one year or less and often 30 days or less. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
Class A Class B Class C Class M ------- ------- ------- ------- From Inception (NAV)(1) 0.56% 0.28% 0.28% 0.30% ---- ---- ---- ---- From Inception (POP)(1) -- (4.72)% -- (1.70)% ---- ---- ---- ---- 7-Day Yield 0.78% 0.38% 0.38% 0.41% ---- ---- ---- ----
NOTES 1 The inception date for IDEX Transamerica Money Market (Class A, B, C and M) was March 1, 2002. The 7-day yield more closely reflects the current earnings of the fund than the total return. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. An investment in IDEX Transamerica Money Market is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the portfolio seeks to preserve the net asset value of your investment at $1.00 per share, it is possible to lose money by investing in the portfolio. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class A and C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Periods less than 1 year represent total return and are not annualized.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - ----------------------------------------- ---------------------------------------- USAA Capital Corporation Commercial Banks 15.4% 11/14/2002 2.5% Asset-Backed 14.1% Unilever Capital Corporation - Security & Commodity Brokers 8.6% 144A 11/15/2002 2.5% Personal Credit Institutions 7.3% International Business Machines Chemicals & Allied Products 6.9% Corporation 11/08/2002 2.1% Toyota Motor Credit Corporation - 144A 12/06/2002 2.0% Toronto Dominion Holdings (USA), Inc. 12/18/2002 2.0%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 75 ANNUAL REPORT 2002 IDEX TRANSAMERICA VALUE BALANCED
Credit Quality of Bonds (% of Net Assets) S&P ----------------------- AAA 18.8% AA 1.2% A 6.0% BBB 10.3% BB 0.9% NA 0.4%
Credit Quality of Bonds (% of Net Assets) Moody's ------------------------- A1 1.4% A2 2.8% A3 3.4% Aa1 0.4% Aa3 1.4% Aaa 18.8% Ba1 1.8% Baa1 3.3% Baa2 0.8% Baa3 3.5%
OBJECTIVE/FOCUS Preservation of capital and competitive investment returns by enhancing value during strong markets through increased weighting in stocks and preserve capital during weak/volatile markets primarily through increased weighting in U.S. Treasuries. INVESTMENT FOCUS [CHART] MARKET ENVIRONMENT The past year was the most difficult in several decades for U.S. equity markets; the Russell 1000 Value Index ("Russell 1000 Value") retreated 10.2%. Driving the downturn was a classic case of too much supply chasing too little demand. Free-flowing capital in the 1990s led to overcapacity in many industries. Since then, the stock market has moved into bear territory, depleting investors' retirement savings, and the economy has been persistently sluggish. Worried consumers curtailed their spending in favor of boosting savings levels. The result: in a variety of industries, excess capacity and competition collided with flat or falling demand this year, making it difficult for companies to maintain prices and earnings levels. Also restraining earnings growth was a new attitude toward accounting practices. For some years now, aggressive accounting methods have been utilized to create ever-higher earnings. Following several high-profile accounting scandals and bankruptcies in 2002, that trend came to an end. Companies embraced more conservative methods of stating profits, and earnings reported to the public declined in several industries. With the equity markets in disarray, investors transferred assets to the fixed-income markets, contributing to a 5.91% 12-month gain for the Lehman Brothers Intermediate U.S. Government Credit Index. PERFORMANCE For the year ended October 31, 2002, IDEX Transamerica Value Balanced returned (13.20)%, as compared to its benchmarks, the Russell 1000 Value Index and the Lehman Brothers Intermediate U.S. Government/Credit Index, which returned (10.02)% and 5.91%, respectively, for the same period. Please refer to the Performance Table on the next page for more information. STRATEGY REVIEW More precisely, the fund's disappointing results can be attributed to our investments in WorldCom, Inc. ("WorldCom") and AT&T Wireless Services, Inc. ("AT&T"). It is clear in hindsight that we underestimated the price competition and overcapacity in the telecommunications industry. In the case of AT&T, we had thought that data transmission services would be a growth engine for the business, but demand (and therefore revenue) did not evolve as we anticipated. As for WorldCom, we mis-stepped by adding to our position after the stock dropped precipitously. Shortly after our additional purchases, WorldCom announced fraudulent accounting practices and since declared bankruptcy. Although two-thirds of the fund's holdings suffered losses this past year, the downside was somewhat less then the market's general malaise. Thirty percent of our stocks actually remained in positive territory. The gainers included Washington Mutual, Inc., Jefferies Group, Inc. and a half-dozen other banks and financial entities, as well as package-delivery company FedEx Corporation and KeySpan Corporation ("KeySpan"), a Northeastern utilities company. We had selected each for its solid business model, healthy financial status and a unique competitive position in an industry that holds up well during economic downturns. For instance, KeySpan is a traditional energy company; unlike Enron Corp., Calpine Corporation and others, it earns income by supplying energy to customers, not trading it with competitors. The company pays a consistently high dividend yield, has positive cash flow and enjoys a defensible market position. Also, it owns natural gas manufacturing facilities in Texas, providing an additional source of revenue. The stock was undervalued at the time of purchase. Rising prices for natural gas have since boosted the share price and reduced the dividend yield. We are taking our profits and looking for new opportunities to invest for capital appreciation. OUTLOOK It will take some additional time to remove the excess capacity from the economy, through asset sales, bankruptcies and shutdowns. In the interim, falling prices (i.e., deflation) are possible, so we are not overly optimistic about earnings growth. Investment opportunities will likely be limited to industries that can maintain their pricing power in a slack economy, such as financial services and pharmaceuticals. We will remain patient (holding some cash) and we will continue to look for individual opportunities in these and other deflation-resistant areas. /S/ JOHN RIAZZI JOHN RIAZZI /S/ GARY U. ROLLE GARY U. ROLLE Co-Fund Managers Transamerica Investment Management, LLC 76 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [GRAPH] This graph compares the 10/31/02 value of hypothetical simultaneous $10,000 investments made in Class A Shares and its comparative Indices on Class A's inception date. SYSTEMATIC WITHDRAWAL PLAN With this option, funds are withdrawn from a shareholder's fund account and sent electronically to his/her bank on a pre-designated schedule. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 10/31/02
From Inception 1 year 5 year Inception Date ------ ------ --------- ---------- Class A (NAV) (13.20)% (0.46)% 3.99% 10/1/95 Class A (POP) (17.97)% (1.58)% 3.17% 10/1/95 LBIGC(1) 5.91% 7.26% 7.16% 10/1/95 Russell 1000(1) (10.02)% 2.29% 8.87% 10/1/95 ------ ----- ---- ------- Class B (NAV) (13.72)% (1.08)% 3.34% 10/1/95 Class B (POP) (18.03)% (1.28)% 3.34% 10/1/95 ------ ----- ---- ------- Class C (NAV) (13.72)% -- (2.41)% 11/1/99 ------ ----- ---- ------- Class M (NAV) (13.64)% (0.98)% 3.44% 10/1/95 Class M (POP) (15.36)% (1.18)% 3.30% 10/1/95 ------ ----- ---- -------
Notes (1) The Russell 1000 Value (Russell 1000) Index and Lehman Brothers Intermediate U.S. Government/Credit (LBIGC) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of Class A shares. Source: Standard & Poor's Micropal(R)(C)Micropal, Inc. 2002 - 1-800-596-5323 - http://www.micropal.com. The performance data presented represents past performance, future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares and 1% for M shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the 1st 18 months) for Class M shares. Class C shares do not impose a sales charge. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.
FIVE LARGEST HOLDINGS (% OF NET ASSETS) TOP FIVE INDUSTRIES (% OF NET ASSETS) - --------------------------------------- ----------------------------------------- U.S. Treasury Note 11/15/2006 10.3% U.S. Government Obligations 18.8% Washington Mutual, Inc. 5.5% Commercial Banks 10.0% FleetBoston Financial Corporation 4.7% Telecommunications 8.6% U.S. Treasury Bond 03/31/2004 4.3% Pharmaceuticals 8.1% Sprint Corporation (FON Group) 3.8% Savings Institutions 6.4%
This material must be preceeded or accompanied by the current prospectus, which includes specific content regarding the investment objectives and policies of this fund. IDEX MUTUAL FUNDS 77 ANNUAL REPORT 2002 PREFACE TO THE SCHEDULES OF INVESTMENTS This schedule provides a complete listing of each fund's holdings at period end. For all funds except IDEX American Century International, IDEX Janus Global, IDEX Great Companies-Global(2), IDEX Gabelli Global Growth, and IDEX Federated Tax Exempt, positions are grouped together first by asset type, then by basic industry. Within an industry, securities are listed alphabetically. IDEX American Century International, IDEX Great Companies-Global(2), IDEX Gabelli Global Growth, and IDEX Janus Global positions are grouped first according to country, then by asset type and finally, the securities are listed alphabetically. IDEX Federated Tax Exempt invests in municipal securities, which are more meaningfully categorized by state. Within each state, securities are listed alphabetically. For purposes of simplicity, sectors and industries are not included as grouping levels for these funds. Please refer to the graphics presented on these two pages for more detailed explanations. VALUE - The market value on the last day of the period SHARES/PRINCIPAL - The quantity of the position held ASSET TYPE - Common Stocks, Convertible's, Bonds and Short-Term INDUSTRY - The primary industry of the listed security INVESTMENTS - The legal description of the position This section lists all open Forward Foreign Currency Contracts ("FEC's"). FEC's are often opened to hedge currency exposure involved with the purchase or sale of a non-U.S. dollar denominated security. Purchases and sales of non-U.S. securities are generally denominated and settled in the currency of their country of issue. In addition to offsetting purchases and sales, FEC's can be entered into to hedge another country's currency. Refer to the fund's prospectus for specifics. 78 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 [CHART] [CHART] * REVENUE BOND - issues backed by the ability of the issuer to earn income from a particular project. * GENERAL OBLIGATION BOND - issues backed by the full faith, credit and taxing power of the issuer. IDEX MUTUAL FUNDS 79 ANNUAL REPORT 2002 80 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX AGGRESSIVE ASSET ALLOCATION
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ MUTUAL FUNDS (96.1%) (A) Aggressive (48.9%) IDEX Great Companies - America(SM) (b) 285,356 $ 2,182,970 IDEX Isabelle Small Cap Value (b) 457,310 4,156,945 IDEX T. Rowe Price Health Sciences (b) 94,677 783,922 IDEX T. Rowe Price Tax-Efficient Growth 259,059 2,095,787 IDEX Transamerica Equity (b) 764,641 4,220,819 IDEX Transamerica Growth Opportunities (b) 371,779 1,788,258 Conservative (29.8%) IDEX Janus Growth & Income (b) 211,482 1,535,360 IDEX Jennison Equity Opportunity (b) 94,440 649,747 IDEX Salomon Investors Value 696,422 7,110,472 International (17.4%) IDEX American Century International (b) 341,235 2,388,646 IDEX Gabelli Global Growth (b) 315,610 1,786,352 IDEX Great Companies - Global(2) (b) 212,307 1,244,118 -------------- TOTAL MUTUAL FUNDS (COST: $32,901,938) 29,943,396 -------------- TOTAL INVESTMENT SECURITIES (COST: $32,901,938) $ 29,943,396 ============== SUMMARY: Investments, at market value 96.1% $ 29,943,396 Other assets in excess of liabilities 3.9% 1,227,308 ------------- -------------- Net assets 100.0% $ 31,170,704 ============= ==============
NOTES TO SCHEDULE OF INVESTMENTS: (a) The fund invests its assets in Class A shares of underlying IDEX Mutual Funds. These underlying funds are considered affiliates of the fund. (b) No dividends were paid during the preceding twelve months. 81 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX ALGER AGGRESSIVE GROWTH
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (92.1%) Amusement & Recreation Services (1.7%) Mandalay Resort Group (a) 28,600 $ 809,094 MGM MIRAGE (a) (b) 41,700 1,296,870 Apparel & Accessory Stores (3.3%) Abercrombie & Fitch Co. - Class A (a) 108,800 1,938,816 Limited, Inc. (The) 129,300 2,026,131 Apparel Products (0.6%) Jones Apparel Group, Inc. (a) 20,000 692,800 Beverages (0.9%) Constellation Brands, Inc. (a) 40,910 1,036,250 Business Services (4.3%) BISYS Group, Inc. (The) (a) 23,500 420,650 eBay Inc. (a) 39,625 2,506,678 First Data Corporation 43,700 1,526,878 Hotels.com - Class A (a)(b) 11,300 704,555 Commercial Banks (4.5%) Citigroup Inc. 34,400 1,271,080 Concord EFS, Inc. (a) 141,100 2,014,908 Fifth Third Bancorp 32,900 2,089,150 Communication (0.8%) Viacom, Inc. - Class B (a) 21,600 963,576 Computer & Data Processing Services (9.9%) Affiliated Computer Services, Inc. - Class A (a) (b) 78,470 3,613,544 Intuit Inc. (a) 45,800 2,377,936 Microsoft Corporation (a) 77,450 4,141,251 Take-Two Interactive Software, Inc. (a) (b) 74,500 1,920,610 Construction (1.1%) D.R. Horton, Inc. 65,850 1,268,930 Drug Stores & Proprietary Stores (0.9%) Walgreen Co. 32,700 1,103,625 Educational Services (2.8%) Apollo Group, Inc. - Class A (a) (b) 27,400 1,137,100 Career Education Corporation (a) 55,900 2,242,149 Electronic Components & Accessories (2.5%) Intersil Corporation - Class A (a) 42,200 716,978 Marvell Technology Group Ltd. (a) (b) 56,800 920,728 Maxim Integrated Products 42,500 1,353,200 Fabricated Metal Products (1.1%) Alliant Techsystems Inc. (a) 22,500 1,353,375 Furniture & Home Furnishings Stores (1.8%) Bed Bath & Beyond Inc. (a) 42,300 1,499,958 Pier 1 Imports, Inc. 38,900 733,265 Health Services (3.7%) HCA Inc. 56,000 2,435,440 Tenet Healthcare Corporation (a) 71,300 2,049,875 Industrial Machinery & Equipment (0.4%) Cooper Cameron Corporation (a) 9,930 462,937 Insurance (5.7%) AFLAC Incorporated 40,000 1,217,600 Anthem, Inc. (a) 53,200 3,351,600 WellPoint Health Networks Inc. (a) 32,300 2,429,283 Insurance Agents, Brokers & Service (1.3%) Willis Group Holdings Limited (a) 53,100 1,624,860 Lumber & Other Building Materials (1.0%) Lowe's Companies, Inc. 30,200 1,260,246 Manufacturing Industries (1.5%) International Game Technology (a) 8,500 639,285 Mattel, Inc. 60,900 1,118,124 Medical Instruments & Supplies (5.4%) Boston Scientific Corporation (a) 68,000 2,558,840 St. Jude Medical, Inc. (a) 44,180 1,573,250 Varian Medical Systems, Inc. (a) 12,900 622,038 Zimmer Holdings, Inc. (a) 41,500 1,710,630
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Mortgage Bankers & Brokers (1.3%) GreenPoint Financial Corp. 36,000 $ 1,568,520 Oil & Gas Extraction (0.5%) BJ Services Company (a) 10,000 303,300 Nabors Industries Ltd. (a) 8,850 309,485 Personal Credit Institutions (2.4%) SLM Corporation 27,800 2,856,172 Pharmaceuticals (20.2%) Alcon, Inc. (a) 39,100 1,603,882 Allergan, Inc. 12,300 669,735 AmerisourceBergen Corporation (b) 47,200 3,358,280 Forest Laboratories, Inc. (a) 22,700 2,224,373 Gilead Sciences, Inc. (a) 105,040 3,649,089 IDEC Pharmaceuticals Corporation (a) (b) 87,550 4,029,050 Johnson & Johnson 43,000 2,526,250 Pfizer Inc. 114,600 3,640,842 Teva Pharmaceutical Industries Ltd. - ADR 18,900 1,463,427 Wyeth 38,900 1,303,150 Printing & Publishing (2.6%) Gannett Co., Inc. 11,800 895,974 New York Times Company (The) - Class A 16,610 804,090 Tribune Company 29,400 1,412,670 Restaurants (2.7%) Brinker International, Inc. (a) 74,200 2,106,538 Wendy's International, Inc. (b) 37,100 1,175,328 Retail Trade (1.9%) Michaels Stores, Inc. (a) 28,800 1,294,848 PETsMART, Inc. (a) 49,800 951,678 Rubber & Misc. Plastic Products (1.2%) NIKE, Inc. - Class B (b) 31,100 1,467,609 Transportation & Public Utilities (0.6%) Expedia, Inc. - Class A (a) (b) 10,400 703,664 Variety Stores (3.5%) Dollar Tree Stores, Inc. (a) 89,700 2,358,213 Wal-Mart Stores, Inc. 34,100 1,826,055 -------------- TOTAL COMMON STOCKS (COST: $115,380,838) 111,236,315 -------------- - ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (2.5%) Federal Home Loan Bank 1.66%, due 11/04/2002 $ 3,000,000 $ 2,999,585 -------------- TOTAL SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (COST: $2,999,585) 2,999,585 -------------- TOTAL INVESTMENT SECURITIES (COST: $118,380,423) $ 114,235,900 ============== SUMMARY: Investments, at market value 94.6% $ 114,235,900 Other assets in excess of liabilities 5.4% 6,533,495 ------------- -------------- Net assets 100.0% $ 120,769,395 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $15,981,167. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 82 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX AMERICAN CENTURY INCOME & GROWTH
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (0.3%) Automotive (0.2%) Ford Motor Company Capital Trust II 1,092 $ 40,076 Electric Services (0.1%) DTE Energy Company 1,398 38,683 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $98,064) 78,759 -------------- PREFERRED STOCKS (0.1%) Automotive (0.1%) General Motors Corporation 1,600 33,360 -------------- TOTAL PREFERRED STOCKS (COST: $43,832) 33,360 -------------- COMMON STOCKS (98.7%) Aerospace (1.1%) Boeing Company (The) 1,562 46,470 Northrop Grumman Corporation (b) 550 56,722 United Technologies Corporation 3,308 204,004 Air Transportation (0.4%) Delta Air Lines, Inc. 867 8,739 FedEx Corporation 1,007 53,562 Southwest Airlines Co. 3,115 45,479 Amusement & Recreation Services (0.4%) Disney (Walt) Company (The) 7,028 117,368 Apparel & Accessory Stores (0.2%) Limited, Inc. (The) 3,229 50,598 Apparel Products (0.2%) V.F. Corporation 1,947 71,689 Auto Repair, Services & Parking (0.3%) Ryder System, Inc. 4,369 100,269 Automotive (0.8%) ArvinMeritor, Inc. 4,359 66,039 Ford Motor Company (b) 4,103 34,711 General Motors Corporation (b) 877 29,160 Honeywell International Inc. 1,378 32,989 Magna International Inc. - Class A 1,347 72,805 Beverages (1.1%) Coca-Cola Enterprises Inc. 1,490 35,522 Coors (Adolph) Company (b) 918 62,865 PepsiCo, Inc. 4,820 212,562 Business Services (1.4%) CheckFree Holdings Corporation (a) 991 16,133 Clear Channel Communications, Inc. (a) 1,721 63,763 First Data Corporation 1,939 67,749 Omnicom Group, Inc. 357 20,574 Overture Services, Inc. (a) (b) 1,290 35,514 Pittston Brink's Group 636 13,464 Rent-A-Center, Inc. (a) 1,210 53,664 Viad Corp. 7,373 143,184 Chemicals & Allied Products (3.9%) Eastman Chemical Company 609 22,131 Lubrizol Corporation (The) 5,160 149,640 Pharmacia Corporation 740 31,820 Procter & Gamble Company (The) 7,895 698,312 RPM, Inc. 1,419 21,370 Sherwin-Williams Company (The) 7,395 202,253 Commercial Banks (11.1%) AmSouth Bancorporation 6,223 121,971 Bank of America Corporation 16,759 1,169,777 Bank One Corporation 879 33,903 Citigroup Inc. 25,430 939,638 Comerica Incorporated 2,263 98,803 First Tennessee National Corporation 3,841 142,424 Hibernia Corporation - Class A 1,425 28,087 National City Corporation 965 26,180 PNC Financial Services Group, Inc. (The) 619 25,169
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Commercial Banks (continued) U.S. Bancorp 8,414 $ 177,451 Union Planters Corporation 1,399 39,536 UnionBanCal Corporation 3,771 161,022 Wachovia Corporation 465 16,177 Wells Fargo & Company 4,247 214,346 Communication (1.5%) PanAmSat Corporation (a) (b) 2,403 46,859 Viacom, Inc. - Class B (a) 9,023 402,516 Communications Equipment (0.6%) Motorola, Inc. 12,907 118,357 QUALCOMM Incorporated (a) 673 23,232 Scientific-Atlanta, Inc. 3,184 38,877 Computer & Data Processing Services (4.9%) Activision, Inc. (a) (b) 4,065 83,333 Acxiom Corporation (a) 612 7,711 Computer Sciences Corporation (a) (b) 5,539 178,854 Compuware Corporation (a) 9,375 45,478 CSG Systems International, Inc. (a) 323 4,160 Electronic Data Systems Corporation 8,070 121,534 GTECH Holdings Corporation (a) 424 11,024 Microsoft Corporation (a) 15,079 806,273 Oracle Corporation (a) 12,179 124,835 Reynolds and Reynolds Company (The) - Class A 984 23,291 Yahoo! Inc. (a) (b) 758 11,309 Computer & Office Equipment (4.1%) Cisco Systems, Inc. (a) 21,542 240,840 Dell Computer Corporation (a) 5,762 164,851 Hewlett-Packard Company 14,561 230,064 International Business Machines Corporation 5,715 451,142 Storage Technology Corporation (a) 4,033 71,303 Xerox Corporation (a) (b) 6,956 46,188 Construction (1.1%) Centex Corporation 1,719 78,180 Fluor Corporation 1,729 40,891 KB Home (b) 2,371 111,911 NVR, Inc. (a) 264 89,496 Department Stores (1.8%) Dillard's, Inc. - Class A 6,596 108,768 Federated Department Stores, Inc. (a) 7,865 241,456 J.C. Penney Company, Inc. (b) 3,859 73,514 May Department Stores Company (The) 1,247 29,117 Sears, Roebuck and Co. (b) 3,010 79,043 Electric Services (1.8%) American Electric Power Company, Inc. (b) 7,736 198,351 CenterPoint Energy, Inc. 1,255 8,885 Dominion Resources, Inc. 1,004 48,192 Duke Energy Corporation 6,230 127,653 Edison International (a) 2,932 29,467 Entergy Corporation 1,053 46,427 FirstEnergy Corp. 446 14,473 FPL Group, Inc. 251 14,804 TXU Corp. 2,388 34,268 Electric, Gas & Sanitary Services (1.7%) Alliant Energy Corporation 757 12,127 Ameren Corporation 1,119 45,208 CMS Energy Corporation (b) 1,651 12,927 Exelon Corporation 1,277 64,361 NiSource Inc. 2,442 40,342 Sempra Energy 12,981 287,399 UGI Corporation 930 36,075 Electrical Goods (0.8%) Anixter International Inc. (a) 3,036 70,041 Arrow Electronics, Inc. (a) 5,192 68,171 Avnet, Inc. 11,585 107,741 Electronic & Other Electric Equipment (3.1%) Cooper Industries, Inc. - Class A 3,923 123,535 Energizer Holdings, Inc. (a) 288 8,594 General Electric Company 29,386 741,996
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX AMERICAN CENTURY INCOME & GROWTH 83 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Electronic & Other Electric Equipment (continued) Maytag Corporation 489 $ 12,616 Whirlpool Corp. 236 11,000 Electronic Components & Accessories (2.2%) Celestica Inc. (U.S.) (a) 3,291 45,416 ESS Technology, Inc. (a) (b) 5,146 28,046 Intel Corporation 21,974 380,150 NVIDIA Corporation (a) 859 10,222 QLogic Corporation (a) (b) 1,182 41,145 Solectron Corporation (a) 2,156 4,851 Texas Instruments Incorporated 2,479 39,317 Tyco International Ltd. 5,823 84,201 Fabricated Metal Products (1.2%) Fortune Brands, Inc. 5,928 296,756 Shaw Group Inc. (The) (a) (b) 2,750 41,140 Food & Kindred Products (2.3%) Archer Daniels Midland Co. 7,535 102,627 ConAgra Foods, Inc. 14,234 345,175 Dean Foods Company (a) (b) 1,206 45,213 Tyson Foods, Inc. - Class A 11,690 129,408 Unilever NV - NY Shares 795 50,888 Food Stores (0.1%) Winn-Dixie Stores, Inc. (b) 2,162 32,473 Furniture & Fixtures (0.5%) Johnson Controls, Inc. 1,530 119,340 Lear Corporation (a) 773 28,253 Furniture & Home Furnishings Stores (0.1%) Pier 1 Imports, Inc. 1,405 26,484 Gas Production & Distribution (0.7%) KeySpan Corporation 3,359 122,704 Nicor Inc. 1,840 57,114 Northern Border Partners, L.P. 718 25,310 Holding & Other Investment Offices (0.4%) CBL & Associates Properties, Inc. 683 25,244 Equity Office Properties Trust 900 21,672 General Growth Properties, Inc. (b) 471 22,646 HRPT Properties Trust 2,181 17,164 Mack-Cali Realty Corporation 625 18,056 Simon Property Group, Inc. 592 20,217 Industrial Machinery & Equipment (0.4%) AGCO Corporation (a) 1,584 40,234 Applied Materials, Inc. (a) 1,027 15,436 Brunswick Corporation 825 16,979 SPX Corporation (a) 1,320 55,453 Instruments & Related Products (2.2%) Applera Corporation - Applied Biosystems Group 3,480 70,400 Eastman Kodak Company (b) 17,042 561,534 Insurance (4.9%) Allstate Corporation (The) 2,392 95,154 American International Group, Inc. 4,620 288,981 CIGNA Corporation 2,978 107,625 CNA Financial Corporation (a) 187 4,924 Fidelity National Financial, Inc. 10,682 322,596 First American Corporation (The) 6,596 134,888 Old Republic International Corp. 8,958 267,038 Oxford Health Plans, Inc. (a) 1,357 48,255 PMI Group, Inc. (The) 667 19,877 Progressive Corporation (The) 65 3,575 UnumProvident Corporation 1,622 33,283 WellPoint Health Networks Inc. (a) 1,336 100,481 Insurance Agents, Brokers & Service (0.1%) MetLife, Inc. 1,089 26,005 Iron & Steel Foundries (0.1%) Precision Castparts Corp. 1,544 29,969 Life Insurance (0.5%) AmerUs Group Co. 3,639 104,439 Protective Life Corporation 1,850 52,873
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Lumber & Other Building Materials (0.4%) Home Depot, Inc. (The) 3,541 $ 102,264 Lumber & Wood Products (0.7%) Georgia-Pacific Corporation 15,739 192,016 Medical Instruments & Supplies (0.1%) Guidant Corporation (a) 1,219 36,046 Metal Cans & Shipping Containers (0.2%) Ball Corporation 1,335 64,654 Mortgage Bankers & Brokers (0.2%) Countrywide Credit Industries, Inc. 725 36,475 GreenPoint Financial Corp. 600 26,142 Motion Pictures (1.1%) AOL Time Warner Inc. (a) 20,858 307,656 Blockbuster Inc. - Class A 752 18,025 Oil & Gas Extraction (1.7%) ConocoPhillips 2,290 111,065 Halliburton Company 9,005 145,701 Occidental Petroleum Corporation 8,252 235,430 Transocean Inc. 720 15,826 Paper & Allied Products (0.4%) 3M Company 198 25,134 International Paper Company 286 9,990 Kimberly-Clark Corporation 1,366 70,349 Personal Credit Institutions (0.7%) Capital One Financial Corporation (b) 2,402 73,189 Household International, Inc. 5,343 126,950 Personal Services (0.5%) Block, (H & R) Inc. 2,892 128,347 Cendant Corp. (a) 1,669 19,194 Petroleum Refining (5.5%) ChevronTexaco Corporation 6,765 457,517 Exxon Mobil Corporation 22,216 747,790 Marathon Oil Corporation 18,876 394,508 Pharmaceuticals (10.3%) Abbott Laboratories 3,054 127,871 AmerisourceBergen Corporation (b) 802 57,062 Amgen Inc. (a) 4,272 198,904 Barr Laboratories, Inc. (a) 989 58,183 Bristol-Myers Squibb Co. 4,270 105,085 Chiron Corporation (a) 335 13,233 Invitrogen Corporation (a) 1,415 39,365 Johnson & Johnson 10,440 613,349 McKesson HBOC, Inc. 3,304 98,492 Merck & Co., Inc. 13,361 724,700 Mylan Laboratories Inc. 1,575 49,565 NBTY, Inc. (a) 1,236 19,220 Pfizer Inc. 19,483 618,974 Schering-Plough Corporation 6,017 128,463 SICOR Inc. (a) 356 5,301 Watson Pharmaceuticals, Inc. (a) 1,969 54,128 Wyeth 1,680 56,280 Primary Metal Industries (0.2%) Nucor Corporation 1,099 46,312 Printing & Publishing (0.4%) American Greetings Corporation - Class A (b) 6,233 93,744 Deluxe Corporation 262 12,110 Moore Corporation Limited (a) 1,614 17,835 Railroads (0.5%) Burlington Northern Santa Fe Corp. 1,631 41,966 CSX Corporation (b) 735 20,286 Norfolk Southern Corporation 1,332 26,906 Union Pacific Corporation 772 45,587 Research & Testing Services (0.0%) Quintiles Transnational Corp. (a) 942 10,127 Residential Building Construction (0.1%) Lennar Corporation (b) 639 35,254
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX AMERICAN CENTURY INCOME & GROWTH 84 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Retail Trade (0.3%) Borders Group, Inc. (a) 882 $ 15,197 Office Depot, Inc. (a) 5,560 80,008 Zale Corporation (a) 164 4,789 Rubber & Misc. Plastic Products (0.4%) Carlisle Companies Incorporated 890 33,170 Cooper Tire & Rubber Company 1,088 14,155 Goodyear Tire & Rubber Company (The) (b) 4,344 30,842 Newell Financial Trust I 1,210 39,228 Sealed Air Corporation (a) (b) 610 9,345 Savings Institutions (0.5%) Washington Mutual, Inc. 3,782 135,244 Security & Commodity Brokers (2.2%) American Express Company 795 28,914 Bear Stearns Companies Inc. (The) (b) 4,123 251,709 E*TRADE Group, Inc. (a) 7,625 34,313 Lehman Brothers Holdings Inc. 955 50,873 Merrill Lynch & Co., Inc. 5,991 227,358 Morgan Stanley Dean Witter & Co. 1,270 49,428 Stone, Clay & Glass Products (0.1%) Owens-Illinois, Inc. (a) 1,253 15,023 Telecommunications (7.6%) ALLTEL Corporation 7,875 391,466 AT&T Corp. 21,152 275,822 BellSouth Corporation 11,182 292,409 SBC Communications Inc. 15,729 403,606 Sprint Corporation (FON Group) 9,554 118,661 Verizon Communications, Inc. 18,272 689,950 Tobacco Products (0.8%) Philip Morris Companies Inc 5,659 230,604 R.J. Reynolds Tobacco Holdings, Inc. 175 7,096 Transportation & Public Utilities (0.6%) Kinder Morgan Energy Partners, LP 4,270 139,416 Plains All American Pipeline, L.P. 1,647 38,375 Trucking & Warehousing (0.6%) United Parcel Service, Inc. - Class B (b) 3,055 183,331
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ U.S. Government Agencies (2.4%) Fannie Mae 7,372 $ 492,892 Freddie Mac 3,313 204,015 Variety Stores (1.0%) Target Corporation 388 11,687 Wal-Mart Stores, Inc. 5,156 276,104 Water Transportation (0.1%) Carnival Corporation (b) 1,486 38,814 Wholesale Trade Durable Goods (0.7%) Fisher Scientific International Inc. (a) 2,395 68,497 IKON Office Solutions, Inc. 8,289 58,686 Ingram Micro Inc. (a) 446 6,391 Tech Data Corporation (a) 2,406 76,872 Wholesale Trade Nondurable Goods (0.4%) SUPERVALU INC. 7,666 128,789 -------------- TOTAL COMMON STOCKS (COST: $34,126,042) 28,701,548 -------------- TOTAL INVESTMENT SECURITIES (COST: $34,267,938) $ 28,813,667 ============== SUMMARY: Investments, at market value 99.1% $ 28,813,667 Other assets in excess of liabilities 0.9% 266,873 ------------- -------------- Net assets 100.0% $ 29,080,540 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $2,301,659. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. 85 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX AMERICAN CENTURY INTERNATIONAL
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ PREFERRED STOCKS (0.5%) Germany (0.5%) Henkel KGaA 1,644 $ 104,716 -------------- TOTAL PREFERRED STOCKS (COST: $108,685) 104,716 -------------- COMMON STOCKS (97.7%) Australia (1.4%) BHP Billiton Limited 29,117 156,674 Commonwealth Bank of Australia 9,702 163,781 Austria (0.3%) Erste Bank der oesterreichischen Sparkassen AG 1,181 69,223 Canada (1.8%) Canadian National Railway Company 3,152 134,496 Canadian Pacific Railway Limited 4,093 81,082 Talisman Energy Inc. 3,549 129,559 TransCanada Pipelines Limited 4,910 69,816 Denmark (2.1%) D/S 1912 - Class B 12 70,045 Danske Bank A/S 16,694 265,856 Novo Nordisk A/S - Class B 4,555 125,654 Finland (2.8%) Nokia Oyj - ADR 24,148 401,340 Stora Enso Oyj - R Shares 7,347 76,418 UPM-Kymmene Oyj 4,485 145,503 France (8.7%) Accor SA 5,345 189,817 Aventis SA 4,321 258,749 BNP Paribas SA 6,432 256,518 Credit Lyonnais SA 7,410 263,518 Essilor International SA 2,580 103,891 Groupe Danone SA 2,202 285,750 Sanofi-Synthelabo 2,627 160,692 Television Francaise 1 3,165 81,516 Total Fina Elf SA 2,613 360,052 Germany (2.7%) BASF AG 3,853 143,511 Bayerische Motoren Werke AG (BMW) 4,485 159,942 Deutsche Borse AG 3,549 127,266 SAP AG 1,498 115,004 Volkswagen AG (b) 1,737 65,644 Hong Kong (0.3%) Hong Kong and China Gas Company Limited (The) 49,940 65,634 Ireland (2.7%) Allied Irish Banks PLC 22,964 318,474 Bank of Ireland 26,355 292,401 Italy (6.7%) Autostrade SpA 30,243 251,563 ENI - Ente Nazionale Idrocarburi (b) 21,846 301,346 Italgas SpA 8,009 77,980 Snam Rete Gas SpA 41,698 123,712 Telecom Italia SpA - RNC 77,110 406,064 UniCredito Italiano SpA 92,073 344,400 Japan (12.8%) Ajinomoto Co., Inc. 17,000 174,484 Asahi Glass Company, Limited (b) 19,000 113,718 Bridgestone Corporation 12,787 159,433 Canon Inc. 8,459 312,196 Honda Motor Co., Ltd. 4,113 147,433 Hoya Corporation 2,564 176,070 Kao Corporation 11,656 266,488 KDDI Corporation 22 64,669 Mitsubishi Tokyo Financial Group, Inc. 18 117,433 Nikkei 225 - ETF 3,340 235,085 Nintendo Co., Ltd. 1,000 96,350 Nissan Motor Co., Ltd. 27,445 210,874
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Japan (continued) Shin-Etsu Chemical Co., Ltd. (b) 4,403 $ 135,897 Sony Corporation (b) 7,052 303,454 Takeda Chemical Industries, Ltd. 8,284 344,293 Mexico (0.6%) Fomento Economico Mexicano, SA de CV - ADR 1,885 68,237 Wal-Mart de Mexico SA de CV - Series V 25,622 64,020 Netherlands (7.1%) Gucci Group NV - NY Registered Shares 2,021 182,597 Heineken NV 7,431 298,642 Koninklijke KPN NV 24,313 154,141 Royal Dutch Petroleum Company - NY Registered Shares 10,646 455,436 TPG NV 4,239 68,698 Unilever NV - CVA 3,512 225,264 VNU NV 7,928 212,908 New Zealand (0.3%) Telecom Corporation of New Zealand Limited 29,073 71,498 Russia (1.4%) Lukoil Oil Company - ADR 901 58,565 OAO Gazprom - ADR 5,014 66,937 Surgutneftegaz - ADR 7,620 137,160 YUKOS Oil Company 5,696 52,973 South Korea (3.7%) Hyundai Motor Company Limited 1,260 32,017 Korea Electric Power Corporation 7,801 118,168 Samsung Electronics Co., Ltd. 1,321 374,175 Samsung Fire & Marine Insurance Co., Ltd. 1,420 86,273 Samsung SDI Co., Ltd. 1,500 93,227 SK Telecom Co., Ltd. - ADR (b) 6,561 131,679 Spain (4.8%) Altadis, SA 14,647 309,774 Autopistas Concesionaria Espanola, SA 7,835 82,270 Banco Popular Espanol SA 3,717 159,212 Grupo Dragados 4,889 70,757 Grupo Ferrovial, SA 6,713 156,273 Inditex, SA 2,494 56,082 Telefonica SA (a) 26,043 247,147 Sweden (1.1%) Atlas Copco AB - A Shares 702 14,722 Nordea AB 20,626 84,487 Sandvik AB 4,755 113,227 Svenska Cellulosa AB - B Shares 1,414 43,246 Switzerland (9.1%) Adecco SA - Registered Shares 2,029 79,736 Ciba Specialty Chemicals Holding Inc. - Registered Shares 1,675 118,030 Lonza Group Ltd. - Registered Shares 1,690 102,769 Nestle SA - Registered Shares 1,890 405,302 Novartis AG 9,317 355,408 Roche Holdings AG 4,146 293,554 STMicroelectronics NV - NY Registered Shares (b) 4,996 98,271 Swisscom AG - Registered Shares 626 186,201 UBS AG - Registered Shares (a) 8,442 402,395 United Kingdom (24.3%) Alliance & Leicester PLC 10,111 134,467 Amersham PLC 9,073 81,909 AMVESCAP PLC 20,285 125,682 AstraZeneca PLC 6,876 256,583 Boots Company PLC (The) 12,607 117,363 BP PLC 37,239 238,883 British Sky Broadcasting Group PLC (a) 13,440 126,905 Daily Mail and General Trust PLC 13,954 120,410 Diageo PLC 16,123 181,754 EMAP PLC 6,021 69,146 Exel PLC 13,261 136,315 Gallaher Group PLC 13,714 134,749
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX AMERICAN CENTURY INTERNATIONAL 86 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ United Kingdom (continued) Glaxo Wellcome PLC - ADR 7,543 $ 284,296 GUS PLC 20,771 187,678 HSBC Holdings PLC 23,867 260,119 Imperial Tobacco Group PLC 6,015 94,111 Johnson Matthey PLC 5,907 79,852 Lloyds TSB Group PLC 12,548 107,979 Marks and Spencer Group PLC 83,932 491,465 mmO2 PLC (a) 143,310 107,627 Next PLC 5,659 78,801 Reckitt Benckiser PLC 15,969 289,827 Reed International PLC 30,557 269,885 Rentokil Initial PLC 94,869 321,726 Royal Bank of Scotland Group PLC (The) 18,967 446,324 Smith & Nephew PLC 15,451 91,864 Vodafone Group PLC 299,415 481,347 Vodafone Group PLC - ADR 7,058 112,363 United States (3.0%) iShares MSCI EAFE Index Fund 6,912 681,524 -------------- TOTAL COMMON STOCKS (COST: $22,534,686) 21,943,200 -------------- TOTAL INVESTMENT SECURITIES (COST: $22,643,371) $ 22,047,916 ============== SUMMARY: Investments, at market value 98.2% $ 22,047,916 Other assets in excess of liabilities 1.8% 408,377 ------------- -------------- Net assets 100.0% $ 22,456,293 ============= ============== INVESTMENTS BY INDUSTRY: - ------------------------------------------------------------------------------------------ PERCENTAGE MARKET OF NET ASSETS VALUE - ------------------------------------------------------------------------------------------ Apparel & Accessory Stores 0.2% $ 56,082 Apparel Products 2.2% 491,465 Automotive 2.7% 615,910 Beer, Wine & Distilled Beverages 0.3% 68,237 Beverages 2.1% 480,396 Business Services 0.4% 79,736 Chemicals & Allied Products 6.7% 1,499,839 Commercial Banks 15.9% 3,552,120 Communication 1.8% 406,064 Communications Equipment 1.8% 401,340 Computer & Data Processing Services 0.5% 115,004 Computer & Office Equipment 1.4% 312,196 Construction 2.1% 478,593 Drug Stores & Proprietary Stores 0.5% 117,363 Electric Services 0.5% 118,168 Electronic & Other Electric Equipment 3.4% 773,979 Electronic Components & Accessories 0.9% 191,498 Finance 3.0% 681,524 Food & Kindred Products 4.9% 1,090,800 Gas Production & Distribution 1.5% 337,142 Holding & Other Investment Offices 1.0% 235,085 Hotels & Other Lodging Places 0.8% 189,817 Industrial Machinery & Equipment 0.6% 127,949 Instruments & Related Products 0.8% 176,070 Insurance 0.4% 86,273
- ------------------------------------------------------------------------------------------ PERCENTAGE MARKET OF NET ASSETS VALUE - ------------------------------------------------------------------------------------------ Leather & Leather Products 0.8% $ 182,597 Medical Instruments & Supplies 1.2% 277,664 Metal Mining 0.7% 156,674 Mortgage Bankers & Brokers 0.6% 134,467 Oil & Gas Extraction 4.9% 1,106,592 Paper & Allied Products 1.2% 265,167 Personal Services 1.4% 321,726 Petroleum Refining 3.1% 694,319 Pharmaceuticals 8.2% 1,820,480 Printing & Publishing 3.0% 672,349 Radio & Television Broadcasting 0.9% 208,421 Railroads 1.0% 215,578 Retail Trade 1.2% 266,479 Rubber & Misc. Plastic Products 0.7% 159,433 Security & Commodity Brokers 1.1% 252,948 Stone, Clay & Glass Products 0.5% 113,718 Telecommunications 7.0% 1,556,672 Tobacco Products 2.4% 538,634 Transportation & Public Utilities 1.0% 218,585 Trucking & Warehousing 0.3% 68,698 Variety Stores 0.3% 64,020 Water Transportation 0.3% 70,045 ------------- -------------- Investments, at market value 98.2% $ 22,047,916 Other assets in excess of liabilities 1.8% 408,377 ------------- -------------- Net assets 100.0% $ 22,456,293 ============= ==============
FORWARD FOREIGN CURRENCY CONTRACTS:
- -------------------------------------------------------------------------- AMOUNT IN NET UNREALIZED BOUGHT SETTLEMENT U.S. DOLLARS APPRECIATION CURRENCY (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION) - -------------------------------------------------------------------------- British Pound (134,261) 11/01/02 $ (208,984) $ (1,067) British Pound (2,887) 11/04/02 (4,507) (8) Danish Krone (96,771) 11/01/02 (12,808) (88) Danish Krone (376,363) 11/04/02 (50,066) (80) Euro Dollar 9,004 11/01/02 8,845 73 Euro Dollar (78,607) 11/04/02 (77,549) (305) Japanese Yen (6,022,260) 11/01/02 (49,184) 8 Japanese Yen (2,819,245) 11/04/02 (23,033) 8 New Zealand Dollar (12,172) 11/04/02 (5,894) (25) Swiss Franc 37,134 11/01/02 24,967 193 Swiss Franc 41,474 11/04/02 28,059 45 -------------- -------------- $ (370,154) $ (1,246) ============== ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $740,351. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt CVA Certificaaten van aandelen (share certificates) ETF Exchange-Traded Fund RNC Saving Non-Convertible Shares 87 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX CONSERVATIVE ASSET ALLOCATION
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ MUTUAL FUNDS (96.2%) (A) Aggressive (15.2%) IDEX Great Companies - America(SM) (b) 186,287 $ 1,425,094 IDEX Isabelle Small Cap Value (b) 187,576 1,705,066 IDEX T. Rowe Price Tax-Efficient Growth 309,564 2,504,375 IDEX Transamerica Equity (b) 193,515 1,068,204 IDEX Transamerica Growth Opportunities (b) 178,473 858,456 Conservative (11.3%) IDEX Janus Growth & Income (b) 256,717 1,863,764 IDEX Jennison Equity Opportunity (b) 89,142 613,296 IDEX Salomon Investors Value 306,187 3,126,164 Fixed-Income (54.3%) IDEX Janus Flexible Income 598,310 5,947,203 IDEX PIMCO Total Return 1,216,913 12,558,540 IDEX Transamerica Conservative High-Yield Bond 594,960 4,712,086 IDEX Transamerica Convertible Securities 409,373 3,839,921 International (7.5%) IDEX Gabelli Global Growth (b) 321,931 1,822,127 IDEX Great Companies - Global(2) (b) 322,107 1,887,546 Money Market (7.9%) IDEX Transamerica Money Market 3,905,518 3,905,518 -------------- TOTAL MUTUAL FUNDS (COST: $48,608,592) 47,837,360 -------------- TOTAL INVESTMENT SECURITIES (COST: $48,608,592) $ 47,837,360 ============== SUMMARY: Investments, at market value 96.2% $ 47,837,360 Other assets in excess of liabilities 3.8% 1,885,291 ------------- -------------- Net assets 100.0% $ 49,722,651 ============= ==============
NOTES TO SCHEDULE OF INVESTMENTS: (a) The fund invests its assets in Class A shares of underlying IDEX Mutual Funds. These underlying funds are considered affiliates of the fund. (b) No dividends were paid during the preceding twelve months. 88 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX FEDERATED TAX EXEMPT
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS (94.2%) (A) Alabama (4.3%) Alabama Water Pollution Control, Revenue Bonds, 5.50%, due 08/15/2023, AAA/Aaa $ 500,000 $ 523,315 Birmingham Waterworks & Sewer Board, Revenue Bonds, Series B, 5.25%, due 01/01/2021, AAA/Aaa 1,195,000 1,238,750 Arkansas (1.3%) Jefferson County Hospital Association, Revenue Bonds, Series B, 5.80%, due 06/01/2021, A/NR 500,000 516,270 California (3.4%) Los Angeles Water and Power Division, Revenue Bonds, Series A-A-1, 5.25%, due 07/01/2019, AAA/Aaa 500,000 526,635 Sacramento Municipal Utilities, Revenue Bonds, Series P, 5.25%, due 08/15/2021, AAA/Aaa 300,000 312,624 Torrance Memorial Medical Center, Revenue Bonds, Series A, 6.00%, due 06/01/2022, A+/A1 500,000 527,160 Colorado (1.4%) Colorado Department of Transportation, Revenue Bonds, Series A, 5.50%, due 06/15/2015, AAA/Aaa 500,000 575,140 Florida (1.3%) Orlando Utilities, Community Water and Electric Division, Revenue Bonds, 5.25%, due 10/01/2020, AA/Aa1 500,000 526,850 Georgia (1.3%) Clayton County Water Authority, Revenue Bonds, 5.13%, due 05/01/2021, AA/Aa3 500,000 513,855 Illinois (6.5%) Chicago, Illinois Board of Education, General Obligation Bonds, Zero Coupon, due 12/01/2024, AAA/Aaa 1,500,000 452,610 Illinois State Partnership, Department of Central Management, Public Improvements, General Obligation Bonds, 5.65%, due 07/01/2017, AAA/Aaa 1,000,000 1,090,000 McHenry County Community School District, General Obligation Bonds, Series A, 5.85%, due 01/01/2016, AAA/Aaa 1,000,000 1,102,390 Indiana (2.7%) Indianapolis Gas Utility, Revenue Bonds, Series A, 5.25%, due 08/15/2012, AAA/Aaa 1,000,000 1,092,570 Iowa (2.5%) Iowa State Certificate of Participation, Revenue Bonds, 6.50%, due 07/01/2006, AAA/Aaa 1,000,000 1,023,810 Louisiana (1.3%) Sabine River Authority, Water Facilities, Revenue Bonds, 6.20%, due 02/01/2025, BBB/Baa2 500,000 515,235 Massachusetts (1.3%) Massachusetts State Health and Educational Facilities Authority, Revenue Bonds, 5.38%, due 05/15/2017, AAA/Aaa 500,000 524,850 Michigan (8.5%) Cornell Michigan, Economic Development, Revenue Bonds, 5.88%, due 05/01/2018, BBB/Baa2 500,000 488,335 Michigan Municipal Bond Authority, Revenue Bonds, 5.50%, due 10/01/2022, AAA/Aaa 500,000 574,655 Michigan State Strategic Fund Ltd, Revenue Bonds, 5.45%, due 09/01/2029, A-/A3 1,000,000 1,003,400
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Michigan (continued) West Bloomfield Michigan School District, General Obligation Bonds, 5.13%, due 05/01/2021, AAA/Aaa $ 900,000 $ 920,349 Western Michigan University, Revenue Bonds, 5.00%, due 07/15/2021, AAA/Aaa 500,000 505,595 Nevada (1.3%) Clark County School District, School Improvements, General Obligation Bonds, Series F, 5.00%, due 06/15/2006, AAA/Aaa 500,000 544,865 New Hampshire (1.1%) New Hampshire State Housing Authority, Single-Family Mortgage, Revenue Bonds, Series C, 6.13%, due 01/01/2020, NR/Aa2 415,000 437,850 New Jersey (1.3%) New Jersey State Variable Purpose, General Obligation Bonds, 5.00%, due 08/01/2020, AAA/Aaa 500,000 515,535 New Mexico (1.3%) New Mexico Mortgage and Finance Authority, Revenue Bonds, 6.05%, due 09/01/2021, AAA/NR 495,000 517,394 New York (7.5%) New York City Industrial Development Agency, Revenue Bonds, 5.38%, due 07/01/2017, AAA/Aaa 250,000 268,883 New York City Transitional Finance Authority, Revenue Bonds, Non pre-refunded, 5.50%, due 02/15/2019, AA+/Aa2 640,000 683,565 New York City Transitional Finance Authority, Revenue Bonds, Pre-refunded, 5.50%, due 02/15/2019, AA+/Aa2 360,000 410,738 New York State Mortgage Agency, Revenue Bonds, Series 95, 5.50%, due 10/01/2017, NR/Aa1 500,000 528,950 Niagara Count Solid Waste Disposal Division, Revenue Bonds, Series D, 5.55%, due 11/15/2024, BBB/Baa1 500,000 521,485 Warwick Valley Central School District, School Improvements, General Obligation Bonds, 5.50%, due 01/15/2017, NR/Aaa 570,000 615,782 North Carolina (1.2%) North Carolina Housing and Finance Agency Authority, Revenue Bonds, 5.25%, due 01/01/2022, AA/Aa2 485,000 487,648 North Dakota (1.2%) North Dakota State Housing and Finance Authority, Revenue Bonds, Series C, 6.00%, due 07/01/2020, NR/Aa3 480,000 501,518 Ohio (6.5%) Ohio State Air Quality Development Authority, Revenue Bonds, Series A, 6.00%, due 12/01/2013, BBB-/Baa3 500,000 511,155 Ohio State Building Authority, Revenue Bonds, 5.00%, due 04/01/2018, AA/Aa2 500,000 519,390 Ohio State Infrastructure, Highway Improvements, Revenue Bonds, 5.00%, due 06/15/2006, AA/Aa3 500,000 545,230 Ohio State Schools, General Obligation Bonds, Series A, 5.38%, due 09/15/2017, AA+/Aa1 500,000 541,880 Steubenville Hospital Improvement Facilities, Revenue Bonds, 6.38%, due 10/01/2020, NR/A3 500,000 530,710 Oregon (1.2%) Clackamas County Hospital Facilities, Revenue Bonds, Series A, 5.25%, due 05/01/2021, AA/Aa3 500,000 499,415
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX FEDERATED TAX EXEMPT 89 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Pennsylvania (5.1%) Pennsylvania Housing Finance Agency, Multi-Family Mortgage, Revenue Bonds, 9.38%, due 08/01/2028, AAA/Aa2 $ 5,000 $ 5,051 Pennsylvania Housing Finance Agency, Single Family Mortgage, Revenue Bonds, 5.00%, due 04/01/2016, AA+/Aa2 500,000 515,950 Pennsylvania State Facilities Authority, Revenue Bonds, 6.00%, due 01/15/2022, A+/NR 500,000 515,270 Pennsylvania State, General Obligation Bonds, 5.00%, due 09/15/2018, AA/Aa2 500,000 521,720 Sayre, Pennsylvania Health Care Facilities, Revenue Bonds, 5.75%, due 12/01/2021, A-/NR 500,000 512,270 Puerto Rico (2.5%) Puerto Rico Electric Power Authority, Revenue Bonds, Series II, 5.25%, due 07/01/2022, AAA/Aaa 500,000 521,550 Puerto Rico Public Buildings, Revenue Bonds, Series D, 5.25%, due 07/01/2027, A-/Baa1 500,000 510,915 Rhode Island (4.0%) Providence Public Building Authority, Revenue Bonds, Series A, 5.70%, due 12/15/2015, AAA/Aaa 500,000 560,575 Rhode Island Clean Water Financing Agency, Revenue Bonds, 5.80%, due 09/01/2022, AAA/Aaa 1,000,000 1,052,780 South Carolina (2.3%) Lexington County School District, General Obligation Bonds, 5.13%, due 03/01/2023, AA+/Aa1 500,000 513,065 South Carolina State Public Service Authority, Revenue Bonds, Series D, 5.00%, due 01/01/2021, AAA/Aaa 420,000 425,993 South Dakota (1.3%) South Dakota Housing Development Agency, Revenue Bonds, Series C, 5.35%, due 05/01/2022, AAA/Aa1 500,000 509,545 Tennessee (3.2%) Memphis-Shelby County, Tennessee Airport, Revenue Bonds, 5.00%, due 09/01/2009, BBB/Baa2 500,000 521,620 Sullivan County Tennessee Health & Educational Housing Facilities Board Review, Revenue Bonds, 6.25%, due 09/01/2022, BBB+/NR 250,000 253,310 Tennessee Housing Development Agency, Revenue Bonds, 5.38%, due 01/01/2018, AA/Aa2 500,000 516,470 Texas (4.9%) Houston Port Authority, Harris County, General Obligation Bonds, Series A, 5.50%, due 10/01/2024, AA+/Aa1 500,000 518,140 Kingsbridge Municipal Utility District, General Obligation Bonds, 5.38%, due 03/01/2015, NR/Aaa 500,000 520,610 Lower Colorado River Authority, Revenue Bonds, 5.00%, due 05/15/2023, AAA/Aaa 450,000 450,720 North Central Texas Health Facilities Development, Revenue Bonds, 5.25%, due 08/15/2022, AAA/Aaa 500,000 508,200 United States (1.3%) New York Metropolitan Transit Authority, Revenue Bonds, Series A, 5.13%, due 11/15/2022, AAA/Aaa 500,000 512,015
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Utah (1.2%) Utah State Transit Authority, Revenue Bonds, Series A, 5.00%, due 06/15/2023, AAA/Aaa $ 500,000 $ 501,945 Virginia (1.3%) Virginia Commonwealth Transportation Board, Revenue Bonds, Series B, 4.50%, due 05/15/2008, AA+/Aa1 500,000 537,795 Washington (4.0%) Northwest Washington Electric, Revenue Bonds, Series A, 5.75%, due 07/01/2018, AAA/Aaa 500,000 550,580 Seattle Municipal Light and Power, Revenue Bonds, 5.13%, due 03/01/2021, AAA/Aaa 500,000 507,655 University of Washington, Student Facilities Improvements, Revenue Bonds, 5.88%, due 06/01/2016, AAA/Aaa 500,000 555,815 Wisconsin (1.9%) Wisconsin State Health & Educational Facilities Authority, Revenue Bonds, 5.75%, due 08/15/2025, A/A2 500,000 507,870 Wisconsin State Health Facilities, Revenue Bonds, 6.00%, due 07/01/2021, A-/A3 250,000 260,075 Wyoming (2.8%) Wyoming State Farm Loan Board, Capital Facilities, Revenue Bonds, 5.75%, due 10/01/2020, AA-/NR 1,000,000 1,139,350 -------------- TOTAL LONG-TERM MUNICIPAL BONDS (COST: $36,808,913) 38,263,245 -------------- SHORT-TERM MUNICIPAL BONDS (5.6%) (A) Indiana (1.7%) Indiana Health Facilities Financing Authority, Revenue Bonds, 2.04%, due 03/01/2030, AA/Aa3 (b) 700,000 700,000 New York (0.7%) New York City, General Obligation Bonds, 1.95%, due 08/01/2016 AA+/Aa3 (b) 275,000 275,000 Texas (3.2%) North Central Texas Health Facilities Development, Revenue Bonds, 2.04%, due 12/01/2015, AAA/Aaa (b) 1,300,000 1,300,000 -------------- TOTAL SHORT-TERM MUNICIPAL BONDS (COST: $2,275,000) 2,275,000 -------------- TOTAL INVESTMENT SECURITIES (COST: $39,083,913) $ 40,538,245 ============== SUMMARY: Investments, at market value 99.8% $ 40,538,245 Other assets in excess of liabilities 0.2% 74,863 ------------- -------------- Net assets 100.0% $ 40,613,108 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) Ratings indicated are by Standard and Poor's/Moody's, respectively, and are unaudited; NR: not rated by this service. (b) Floating or variable rate note. Rate is listed as of October 31, 2002. 90 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX GABELLI GLOBAL GROWTH
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE BONDS (0.0%) United States (0.0%) NTL Incorporated (e) 6.75%, due 05/15/2008 $ 150,000 $ 17,250 -------------- TOTAL CONVERTIBLE BONDS (COST: $65,250) 17,250 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (0.0%) Switzerland (0.0%) Compagnie Financiere Richemont AG - Units (b) 625 $ 10,799 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $15,554) 10,799 -------------- PREFERRED STOCKS (0.8%) Germany (0.7%) Henkel KGaA 4,740 301,917 ProSiebenSat.1 Media AG 4,486 29,329 United States (0.1%) Broadwing Communications Inc. - Series B 20 1,400 CSC Holdings, Inc. 650 37,700 -------------- TOTAL PREFERRED STOCKS (COST: $366,481) 370,346 -------------- COMMON STOCKS (62.8%) Australia (0.4%) Auriongold Limited 53,122 87,611 Lihir Gold Limited (a) 151,328 91,595 Austria (0.3%) Telekom Austria AG (a) 18,520 141,264 Belgium (0.4%) Electrabel SA 457 106,250 Groupe Bruxelles Lambert SA 1,624 59,925 Bermuda (0.1%) Tyco International Ltd 3,795 54,876 Brazil (0.6%) Companhia Siderurgica Nacional SA - ADR 3,400 34,204 Embratel Participacoes SA - ADR (a) 11,800 7,080 Tele Norte Celular Participacoes SA - ADR (a) 16,900 64,220 Telemig Celular Participacoes SA - ADR (b) 11,025 185,330 Canada (3.1%) Agnico-Eagle Mines Limited 8,349 100,476 Agnico-Eagle Mines Limited (b) 3,760 45,458 Apollo Gold Corporation (a) 13,606 17,824 Barrick Gold Corporation (b) 7,476 112,663 Glamis Gold Ltd. (a) 27,097 220,515 Goldcorp Incorporated 15,180 145,449 IAMGOLD Corporation (b) 26,451 86,002 Invanhoe Mines Limited (a) 14,952 27,698 Meridian Gold, Inc. (a) (b) 7,588 123,988 Placer Dome, Inc. (b) 11,290 97,884 Repadre Capital Corporation (a) 22,652 115,756 Rogers Communications Inc. - Class B (a) (b) 41,750 335,670 Croatia (0.1%) PLIVA d.d. - GDR 5,396 65,292 Denmark (0.3%) Carlsberg A/S (b) 249 11,680 Tele Danmark A/S 5,155 111,292 France (5.6%) Assurances Generales de France SA 1,457 50,501 Aventis SA 373 22,336 Beghin-Say 4,500 166,272 Boiron SA 2,375 171,745 CANAL + 2,400 10,318 Egide (a) 370 4,032 Eiffage SA 2,134 161,294
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ France (continued) Gemplus International SA (a) 181,292 $ 127,507 JCDecaux SA (a) 15,516 166,766 Laboratoires Arkopharma SA 822 33,548 Neopost SA (a) 2,140 74,620 NRJ Groupe 28,400 486,139 Pernod Ricard 404 40,941 Sanofi-Synthelabo 778 47,590 Total Fina Elf SA 1,975 272,140 Vivendi Universal 54,292 666,892 Vivendi Universal - ADR (b) 9,468 114,752 Germany (0.3%) Altana AG 1,260 60,673 Nordex AG (a) 2,025 7,262 STADA Arzneimittel AG 1,973 72,315 Greece (0.0%) Coca-Cola Hellenic Bottling Company SA 293 4,110 Greek Organization of Football Prognostics 585 5,389 Hong Kong (0.1%) Shaw Brothers (Hong Kong) Limited 35,000 27,151 Ireland (0.6%) Anglo Irish Bank Corporation PLC 15,241 102,061 Bank of Ireland 9,205 102,127 Irish Life & Permanent PLC 3,890 44,777 Kerry Group PLC 2,000 25,756 Italy (3.4%) Autogrill SpA (a) 15,245 137,576 Autostrade SpA 21,963 182,690 Banca Monte dei Paschi di Siena SpA 63,800 138,219 ENI - Ente Nazionale Idrocarburi 477 6,580 Finmeccanica SpA 120,000 65,213 Marzotto SpA (b) 86,437 446,960 Parmalat Finanziaria SpA 26,865 74,914 Pininfarina SpA 14,050 250,523 Recordati SpA 3,646 81,336 Riunione Adriatica di Sicurta SpA (b) 3,825 47,590 Telecom Italia Mobile SpA 14,606 67,916 Telecom Italia SpA - RNC 13,010 68,511 Tod's SpA 125 3,822 Japan (5.3%) Asatsu-DK Inc. 1,700 29,358 Benesse Corporation 11,600 118,680 Canon Inc. 2,347 86,621 Fast Retailing Co., Ltd. 4,350 134,617 Fuji Photo Film Co., Ltd. 100 2,760 Furukawa Electric Co., Ltd. (The) 500 902 Hudson Soft Co., Ltd. 140 572 Ito-Yokado Co., Ltd. 249 7,767 KDDI Corporation 60 176,370 Kyocera Corporation - ADR 40 2,360 Mitsubishi Tokyo Financial Group, Inc. 16 104,385 Nikon Corporation (a) (b) 600 4,194 Nippon Broadcasting System, Incorporated 20,000 563,403 NTT DoCoMo, Inc. 75 138,401 Secom Co., Ltd. (b) 15,000 530,334 Terumo Corporation 1,500 20,625 Toshiba Corporation (a) 400 1,003 Toyota Industries Corporation (b) 13,500 201,833 Toyota Motor Corporation 14,203 345,594 Luxembourg (0.1%) SBS Broadcasting SA (a) 2,867 43,005 Mexico (0.8%) Coca-Cola Femsa SA - ADR 14,125 294,930 Tubos de Acero de Mexico SA - ADR 8,200 75,030 Netherlands (1.4%) Fox Kids Europe NV (a) 50,825 205,417 Koninklijke KPN NV (a) 55,882 354,283 United Pan-Europe Communications NV (a) 32,000 2,219 Wolters Kluwer N.V. 4,008 70,314
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX GABELLI GLOBAL GROWTH 91 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Norway (0.1%) Telenor ASA 16,316 $ 58,149 Peru (0.2%) Compania de Minas Buenaventura SA - ADR 4,553 101,304 Portugal (0.2%) Portugal Telecom, SGPS, SA - Registered Shares 18,887 114,128 South Africa (3.5%) Anglogold Ltd. - ADR 4,519 113,743 Durban Roodepoort Deep, Limited - ADR (a) 37,946 111,182 Gold Fields Limited - ADR (b) 21,975 241,725 Harmony Gold Mining Company Limited 69,409 935,430 Harmony Gold Mining Company Limited - ADR (b) 18,214 238,239 Spain (0.5%) Altadis, SA 3,825 80,896 Fomento de Construcciones y Contratas, SA 6,859 141,394 Gas Natural SDG, SA 582 9,772 Telefonica SA (a) 778 7,383 Switzerland (1.3%) Converium Holding AG (a) 1,700 68,650 Novartis AG 8,825 336,640 Swatch Group AG (The) - Class B 820 66,949 Swiss Reinsurance Company - Registered Shares 612 42,503 Swisscom AG - Registered Shares 358 106,486 United Kingdom (3.0%) BAE Systems PLC 6,211 18,099 Boots Company PLC (The) 1,899 17,679 BP PLC 24,735 158,672 British Sky Broadcasting Group PLC (a) 13,630 128,699 BT Group PLC 79,644 226,169 Diageo PLC 6,119 68,979 Filtronic PLC 35,550 45,332 Hilton Group PLC 31,096 84,656 HSBC Holdings PLC 587 6,539 National Grid Group PLC (The) 19,398 138,093 Rank Group PLC (The) 26,632 123,339 Reuters Group PLC 150 442 Scottish and Southern Energy PLC 12,000 119,035 Six Continents PLC 6,345 51,523 Stolt Offshore SA (a) 27,450 46,146 United Business Media PLC 188 753 Vodafone Group PLC 99,136 159,374 United States (31.1%) ACME Communications, Inc. (a) 2,553 19,454 Agere Systems Inc. (a) 39,692 34,532 Agere Systems Inc. - Class B (a) 25,276 23,507 Allied Waste Industries, Inc. (a) (b) 13,230 107,825 ALLTEL Corporation 1,855 92,212 AOL Time Warner Inc. (a) 17,279 254,865 Archer Daniels Midland Co. 30,800 419,496 Ascential Software Corporation (a) 22,234 53,806 AT&T Corp. 63,450 827,387 AT&T Wireless Services, Inc. (a) (b) 9,249 63,541 Beasley Broadcast Group, Inc. - Class A (a) 1,868 23,817 Belo (A.H.) Corporation - Class A 2,353 54,354 Blockbuster Inc. - Class A 15,111 362,211 Bristol-Myers Squibb Co. 4,554 112,074 Broadwing Inc. (a) 110,765 252,544 Cablevision Systems Corporation - Class A (a) (b) 13,625 130,255 Callaway Golf Company (b) 9,000 110,160 Cendant Corp. (a) 18,216 209,484 Centennial Communications Corp. (a) 17,475 44,561 CenturyTel, Inc. 1,555 44,053 Charter Communications, Inc. (a) (b) 2,698 3,046 Citizens Communications Company (a) (b) 759 6,315 CMGI, Inc. (a) 12,500 6,625 CMS Energy Corporation (b) 1,062 8,315 Coach, Inc. (a) 30,450 905,887
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ United States (continued) Comcast Corporation - Class A (a) (b) 2,090 $ 48,091 Constellation Brands, Inc. (a) 304 7,700 Crown Media Holdings, Inc. (a) (b) 22,059 61,765 Delphi Automotive Systems Corporation 35,125 244,470 Devon Energy Corporation (b) 15,050 760,024 Diversinet Corp. - Units (a) (d) 67,500 20,250 Diversinet Corp. - warrants (a) (d) 50,625 (c) Duke Energy Corporation 1,518 31,104 El Paso Corporation 9,108 70,587 EMC Corporation (a) 7,000 35,770 Equitable Resources, Inc. 4,793 170,631 Fleming Companies, Inc. (b) 1,518 9,776 Freeport-McMoRan Copper & Gold Inc. - Class B (a) (b) 9,086 110,849 Gemstar-TV Guide International, Inc. (a) 64,542 232,997 General Motors Corporation - Class H (a) 3,680 36,248 Granite Broadcasting Corporation (a) 7,590 14,269 Gray Television, Inc. (b) 3,835 33,940 Hain Celestial Group, Inc. (The) (a) 1,159 16,608 Heinz (H.J.) Company 608 19,553 Hewlett-Packard Company 8,641 136,528 Honeywell International Inc. 17,295 414,042 Interep National Radio Sales, Inc. (a) 6,370 16,881 Knight-Ridder, Inc. 1,664 100,140 Leap Wireless International, Inc. (a) 34,000 10,880 Liberty Media Corporation - Class A (a) 96,092 794,680 Lockheed Martin Corporation 4,900 283,710 Loral Space & Communications Ltd. (a) 102,925 34,995 Lucent Technologies Inc. (a) (b) 95,540 117,514 ManTech International Corporation - Class A (a) 5,300 131,175 Mattel, Inc. 9,108 167,223 McLeodUSA Incorporated - Class A - escrow (a) (d) 30,000 (c) McLeodUSA Incorporated - Class A (a) 1,757 773 Merrill Lynch & Co., Inc. 1,518 57,608 Metro-Goldwyn-Mayer Inc. (a) 4,296 54,989 Morgan Chase & Co. (J.P.) 3,036 62,997 Newmont Mining Corporation 7,589 187,600 Nextel Communications, Inc. - Class A (a) (b) 58,516 660,059 NTL Incorporated - rights (d) 216 (c) Oracle Corporation (a) 35,578 364,675 Paxson Communications Corporation (a) 15,600 41,028 Peabody Energy Corporation 455 11,716 Pepsi Bottling Group, Inc. (The) 12,200 328,790 Qwest Communications International Inc. (a) 15,179 51,457 Reader's Digest Association, Inc. (The) - Class A 892 14,504 Ross Stores, Inc. 14,000 585,900 Rural Cellular Corporation - Class A (a) 30,105 40,642 SBC Communications Inc. 491 12,599 Schering-Plough Corporation 4,554 97,228 Scripps (E.W.) Company (The) 1,177 90,853 Sinclair Broadcast Group, Inc. - Class A (a) (b) 19,038 225,220 Sprint Corporation (FON Group) 8,518 105,794 StorageNetworks, Inc. (a) 20,620 19,383 Telephone and Data Systems, Inc. 304 15,474 Tennant Company 304 9,169 Texas Instruments Incorporated 18,844 298,866 Ticketmaster - Class B (a) 40,496 955,705 Travelers Property Casualty Corp. - Class A (a) 10,500 139,335 Tribune Company 455 21,863 United States Cellular Corporation (a) 559 15,428 UnitedGlobalCom, Inc. - Class A (a) 66,993 126,617 ValueVision International, Inc. - Class A (a) 8,600 113,692 Verizon Communications, Inc. 1,391 52,524 Viacom, Inc. - Class A (a) 759 33,844 Viacom, Inc. - Class B (a) 13,975 623,425 Washington Post Company (The) - Class B 595 433,101 Western Wireless Corporation - Class A (a) 12,934 44,622 Williams Companies, Inc. (The) 10,626 19,977
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX GABELLI GLOBAL GROWTH 92 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ United States (continued) WorldCom, Inc. - MCI Group 28,280 $ 2,885 Wyeth 1,518 50,853 Young Broadcasting Inc. - Class A (a) 27,086 270,860 -------------- TOTAL COMMON STOCKS (COST: $39,801,873) 29,318,726 -------------- TOTAL INVESTMENT SECURITIES (COST: $40,249,158) $ 29,717,121 ============== SUMMARY: Investments, at market value 63.6% $ 29,717,121 Other assets in excess of liabilities 36.4% 16,972,261 ------------- -------------- Net assets 100.0% $ 46,689,382 ============= ============== INVESTMENTS BY INDUSTRY: - ------------------------------------------------------------------------------------------ PERCENTAGE MARKET OF NET ASSETS VALUE - ------------------------------------------------------------------------------------------ Aerospace 0.8% $ 367,022 Amusement & Recreation Services 0.6% 264,907 Apparel & Accessory Stores 1.3% 585,900 Apparel Products 1.0% 446,960 Automotive 3.2% 1,492,710 Beer, Wine & Distilled Beverages 0.0% 11,680 Beverages 1.5% 704,509 Business Services 3.3% 1,534,110 Chemicals & Allied Products 0.7% 324,253 Commercial Banks 1.1% 516,328 Communication 4.2% 1,957,721 Communications Equipment 0.3% 152,509 Computer & Data Processing Services 3.3% 1,522,515 Computer & Office Equipment 0.6% 258,919 Construction 1.0% 485,378 Department Stores 0.3% 134,617 Drug Stores & Proprietary Stores 0.0% 17,679 Educational Services 0.3% 118,680 Electric Services 0.8% 394,482 Electric, Gas & Sanitary Services 0.0% 14,630 Electronic & Other Electric Equipment 0.7% 309,977 Electronic Components & Accessories 0.9% 416,816 Environmental Services 0.2% 107,825 Food & Kindred Products 1.6% 763,540 Gas Production & Distribution 0.6% 270,967 Holding & Other Investment Offices 0.1% 59,925 Industrial Machinery & Equipment 0.0% 16,431 Instruments & Related Products 0.2% 73,903 Insurance 0.8% 393,356 Leather & Leather Products 1.9% 909,709 Management Services 0.3% 131,175 Manufacturing Industries 0.6% 277,383 Medical Instruments & Supplies 0.0% 20,625
- ------------------------------------------------------------------------------------------ PERCENTAGE MARKET OF NET ASSETS VALUE - ------------------------------------------------------------------------------------------ Metal Mining 7.0% $ 3,285,293 Mining 0.1% 39,414 Motion Pictures 1.5% 699,216 Oil & Gas Extraction 2.3% 1,084,890 Personal Services 0.5% 209,484 Petroleum Refining 0.3% 158,672 Pharmaceuticals 2.4% 1,129,294 Primary Metal Industries 0.2% 110,136 Printing & Publishing 1.7% 785,882 Radio & Television Broadcasting 4.5% 2,101,461 Restaurants 0.3% 137,576 Retail Trade 0.3% 121,459 Security & Commodity Brokers 0.1% 58,050 Telecommunications 9.9% 4,637,682 Tobacco Products 0.2% 80,896 Wholesale Trade Durable Goods 0.0% 10,799 Wholesale Trade Nondurable Goods 0.0% 9,776 ------------- -------------- Investments, at market value 63.6% 29,717,121 Other assets in excess of liabilities 36.4% 16,972,261 ------------- -------------- Net assets 100.0% $ 46,689,382 ============= ==============
FORWARD FOREIGN CURRENCY CONTRACTS:
- ------------------------------------------------------------------------ AMOUNT IN NET UNREALIZED BOUGHT SETTLEMENT U.S. DOLLARS APPRECIATION CURRENCY (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION) - ------------------------------------------------------------------------ Japanese Yen 3,613,212 11/06/02 $ 29,484 $ 22
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $4,732,694. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (c) Market value is less than $1. (d) Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees. (e) NTL Incorporated is currently in default on interest payments. DEFINITIONS: ADR American Depositary Receipt GDR Global Depository Receipt RNC Saving Non-Convertible Shares 93 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX GOLDMAN SACHS GROWTH
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (99.4%) Aerospace (0.6%) Lockheed Martin Corporation 1,350 $ 78,165 United Technologies Corporation 1,400 86,338 Amusement & Recreation Services (1.7%) Harrah's Entertainment, Inc. (a) 10,140 425,880 Automotive (0.3%) Honeywell International Inc. 2,940 70,384 Beverages (4.4%) Coca-Cola Company (The) 8,900 413,672 PepsiCo, Inc. 15,852 699,073 Business Services (3.0%) Clear Channel Communications, Inc. (a) 5,577 206,628 First Data Corporation 10,460 365,472 TMP Worldwide Inc. (a) 6,580 101,858 Valassis Communications, Inc. (a) 3,340 86,172 Chemicals & Allied Products (4.8%) Avon Products, Inc. 3,780 183,292 Colgate-Palmolive Company 7,730 424,995 du Pont (E.I.) de Nemours and Company 6,101 251,666 Procter & Gamble Company (The) 4,250 375,913 Commercial Banks (7.9%) Bank of America Corporation 5,430 379,014 Bank of New York Company, Inc. (The) 2,540 66,040 Citigroup Inc. 17,206 635,762 MBNA Corporation 16,800 341,208 State Street Corporation 6,590 272,628 Wells Fargo & Company 6,090 307,362 Communication (5.4%) Cablevision Systems Corporation - Class A (a) 7,801 74,578 Cox Communications, Inc. - Class A (a) 2,360 64,664 Crown Castle International Corp. (a) 20,760 72,660 Echostar Communications Corporation - Class A (a) 8,640 176,170 Liberty Media Corporation - Class A (a) 24,640 203,773 Viacom, Inc. - Class B (a) 17,780 793,165 Communications Equipment (1.7%) QUALCOMM Incorporated (a) 12,800 441,856 Computer & Data Processing Services (8.2%) Automatic Data Processing, Inc. 3,330 141,625 Intuit Inc. (a) 6,380 331,250 Microsoft Corporation (a) 25,970 1,388,615 Oracle Corporation (a) 9,770 100,143 Sabre Holdings Corporation (a) 6,750 129,465 Computer & Office Equipment (4.3%) Cisco Systems, Inc. (a) 31,540 352,617 Dell Computer Corporation (a) 11,260 322,149 EMC Corporation (a) 17,390 88,863 International Business Machines Corporation 4,150 327,601 Drug Stores & Proprietary Stores (1.1%) Walgreen Co. 8,390 283,163 Electronic & Other Electric Equipment (4.0%) Energizer Holdings, Inc. (a) 8,100 241,704 General Electric Company 30,390 767,347 Electronic Components & Accessories (2.6%) Intel Corporation 23,950 414,335 Intersil Corporation - Class A (a) 3,980 67,620 Texas Instruments Incorporated 8,110 128,625 Xilinx, Inc. (a) 2,870 54,501 Environmental Services (0.2%) Waste Management, Inc. 1,900 43,738 Fabricated Metal Products (0.4%) Gillette Company (The) 3,550 106,074 Food & Kindred Products (1.3%) Wrigley (Wm.) Jr. Company 6,500 343,005
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Hotels & Other Lodging Places (1.7%) Marriott International, Inc. - Class A 7,580 $ 234,449 Starwood Hotels & Resorts Worldwide, Inc. 8,260 192,458 Instruments & Related Products (0.1%) Raytheon Company 1,180 34,810 Insurance (4.0%) Ambac Financial Group, Inc. 8,275 511,395 American International Group, Inc. 8,130 508,532 Lumber & Other Building Materials (1.6%) Home Depot, Inc. (The) 10,190 294,287 Lowe's Companies, Inc. 2,810 117,261 Lumber & Wood Products (0.4%) Weyerhaeuser Company 2,320 105,096 Motion Pictures (1.9%) AOL Time Warner Inc. (a) 28,030 413,443 Metro-Goldwyn-Mayer Inc. (a) 6,100 78,080 Oil & Gas Extraction (0.8%) Anadarko Petroleum Corporation 1,620 72,155 Apache Corporation 1,090 58,925 Schlumberger Limited 1,790 71,797 Paper & Allied Products (1.9%) 3M Company 1,970 250,072 International Paper Company 4,520 157,884 Kimberly-Clark Corporation 1,690 87,035 Personal Credit Institutions (0.3%) SLM Corporation 690 70,891 Personal Services (1.2%) Cendant Corp. (a) 25,730 295,895 Petroleum Refining (4.7%) ChevronTexaco Corporation 4,601 311,166 Exxon Mobil Corporation 26,094 878,323 Pharmaceuticals (12.1%) Amgen Inc. (a) 3,950 183,912 Bristol-Myers Squibb Co. 11,630 286,214 Johnson & Johnson 11,850 696,188 Lilly (Eli) and Company 6,960 386,280 Merck & Co., Inc. 4,790 259,810 Pfizer Inc. 29,042 922,663 Schering-Plough Corporation 3,670 78,355 Wyeth 7,270 243,545 Primary Metal Industries (0.3%) Alcoa Inc. 3,760 82,946 Printing & Publishing (1.3%) Gannett Co., Inc. 1,780 135,155 New York Times Company (The) - Class A 4,220 204,290 Radio & Television Broadcasting (1.0%) Univision Communications Inc. - Class A (a) 9,720 251,845 Savings Institutions (0.2%) Washington Mutual, Inc. 1,730 61,865 Security & Commodity Brokers (1.5%) Merrill Lynch & Co., Inc. 2,640 100,188 Morgan Stanley Dean Witter & Co. 2,320 90,294 Schwab (Charles) Corporation (The) 20,620 189,292 Telecommunications (1.8%) SBC Communications Inc. 9,540 244,796 Verizon Communications, Inc. 5,939 224,257 Tobacco Products (1.2%) Philip Morris Companies Inc. 7,430 302,773 U.S. Government Agencies (5.1%) Fannie Mae 9,560 639,182 Freddie Mac 10,940 673,685
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX GOLDMAN SACHS GROWTH 94 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Variety Stores (4.4%) Family Dollar Stores, Inc. 3,710 $ 114,231 Wal-Mart Stores, Inc. 18,950 1,014,772 -------------- TOTAL COMMON STOCKS (COST: $33,254,286) 25,361,320 -------------- TOTAL INVESTMENT SECURITIES (COST: $33,254,286) $ 25,361,320 ============== SUMMARY: Investments, at market value 99.4% $ 25,361,320 Other assets in excess of liabilities 0.6% 141,305 ------------- -------------- Net assets 100.0% $ 25,502,625 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. 95 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX GREAT COMPANIES - AMERICA(SM)
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (91.3%) Aerospace (9.1%) United Technologies Corporation 200,300 $ 12,352,501 Beverages (3.0%) Coca-Cola Company (The) 86,000 3,997,280 Business Services (12.4%) First Data Corporation 173,300 6,055,102 Omnicom Group, Inc. 185,100 10,667,313 Chemicals & Allied Products (6.5%) Colgate-Palmolive Company 108,100 5,943,338 Procter & Gamble Company (The) 30,900 2,733,105 Commercial Banks (6.1%) Bank of New York Company, Inc. (The) 160,800 4,180,800 Citigroup Inc. 107,300 3,964,735 Electronic & Other Electric Equipment (8.0%) General Electric Company 424,400 10,716,100 Fabricated Metal Products (3.4%) Gillette Company (The) 151,338 4,521,979 Insurance (8.6%) American International Group, Inc. 183,100 11,452,905 Medical Instruments & Supplies (5.0%) Medtronic, Inc. (a) 148,100 6,634,880 Paper & Allied Products (3.3%) 3M Company 34,400 4,366,736 Pharmaceuticals (17.2%) Johnson & Johnson 101,800 5,980,750 Pfizer Inc. 396,600 12,599,982 Wyeth 135,000 4,522,500
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Security & Commodity Brokers (8.7%) Goldman Sachs Group, Inc. (The) 69,400 $ 4,969,040 Lehman Brothers Holdings Inc. 93,200 4,964,764 Merrill Lynch & Co., Inc. 44,400 1,684,980 -------------- TOTAL COMMON STOCKS (COST: $146,455,890) 122,308,790 -------------- TOTAL INVESTMENT SECURITIES (COST: $146,455,890) $ 122,308,790 ============== SUMMARY: Investments, at market value 91.3% $ 122,308,790 Other assets in excess of liabilities 8.7% 11,616,890 ------------- -------------- Net assets 100.0% $ 133,925,680 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $2,117,454. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. 96 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX GREAT COMPANIES - GLOBAL(2)
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (92.5%) Australia (4.6%) News Corporation Limited (The) - ADR 33,900 $ 787,497 France (4.6%) L'Oreal SA - ADR 52,900 787,908 Germany (1.8%) SAP AG - ADR 16,000 306,240 Japan (6.8%) Canon Inc. - ADR 10,000 367,600 Sony Corporation - ADR 18,300 791,292 Netherlands (4.6%) ING Groep NV - ADR 47,100 780,447 South Korea (2.1%) Samsung Electronics Co., Ltd. - GDR - 144A (b) 2,500 356,875 Switzerland (10.3%) Nestle SA - ADR 15,000 804,012 Novartis AG - ADR 25,000 948,500 United Kingdom (3.6%) HSBC Holdings PLC - ADR 11,000 612,700 United States (54.1%) AFLAC Incorporated 10,700 325,708 American International Group, Inc. 10,000 625,500 Amgen Inc. (a) 6,800 316,608 Analog Devices, Inc. (a) 14,000 375,200 General Electric Company 35,500 896,375 Goldman Sachs Group, Inc. (The) 9,200 658,720 Intel Corporation 20,800 359,840 International Business Machines Corporation 4,700 371,018 Johnson & Johnson 9,020 529,925 Medtronic, Inc. 17,200 770,560 Merrill Lynch & Co., Inc. 18,000 683,100 Microsoft Corporation (a) 6,400 342,208 Omnicom Group, Inc. 12,600 726,138 Pfizer Inc. 30,200 959,454 Texas Instruments Incorporated 17,900 283,894 United Technologies Corporation 15,200 937,384 -------------- TOTAL COMMON STOCKS (COST: $17,721,268) 15,704,703 -------------- TOTAL INVESTMENT SECURITIES (COST: $17,721,268) $ 15,704,703 ============== SUMMARY: Investments, at market value 92.5% $ 15,704,703 Other assets in excess of liabilities 7.5% 1,266,312 ------------- -------------- Net assets 100.0% $ 16,971,015 ============= ==============
INVESTMENTS BY INDUSTRY:
- ------------------------------------------------------------------------------------------ PERCENTAGE MARKET OF NET ASSETS VALUE - ------------------------------------------------------------------------------------------ Aerospace 5.5% $ 937,384 Business Services 4.3% 726,138 Chemicals & Allied Products 4.6% 787,908 Commercial Banks 3.6% 612,700 Computer & Data Processing Services 3.8% 648,448 Computer & Office Equipment 4.4% 738,618 Electronic & Other Electric Equipment 12.1% 2,044,542 Electronic Components & Accessories 6.0% 1,018,934 Food & Kindred Products 4.7% 804,012 Insurance 5.6% 951,208 Life Insurance 4.6% 780,447 Medical Instruments & Supplies 4.5% 770,560 Motion Pictures 4.6% 787,497 Pharmaceuticals 16.3% 2,754,487 Security & Commodity Brokers 7.9% 1,341,820 ------------- -------------- Investments, at market value 92.5% 15,704,703 Other assets in excess of liabilities 7.5% 1,266,312 ------------- -------------- Net assets 100.0% $ 16,971,015 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. DEFINITIONS: ADR American Depositary Receipt GDR Global Depository Receipt 97 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX GREAT COMPANIES - TECHNOLOGY(SM)
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (96.5%) Business Services (4.9%) First Data Corporation 18,700 $ 653,378 Computer & Data Processing Services (20.4%) Electronic Arts Inc. (a) 8,900 579,568 Electronic Data Systems Corporation 16,500 248,490 Microsoft Corporation (a) 11,400 609,558 Oracle Corporation (a) 64,300 659,075 Symantec Corporation (a) 15,000 600,000 Computer & Office Equipment (22.5%) Cisco Systems, Inc. (a) 53,800 601,484 Dell Computer Corporation (a) 32,200 921,242 EMC Corporation (a) 89,800 458,878 International Business Machines Corporation 12,600 994,644 Electronic Components & Accessories (29.5%) Analog Devices, Inc. (a) 37,300 999,640 Intel Corporation 58,400 1,010,320 Maxim Integrated Products 18,800 598,592 Texas Instruments Incorporated 40,700 645,502 Xilinx, Inc. (a) 33,800 641,862 Industrial Machinery & Equipment (5.3%) Applied Materials, Inc. (a) 46,700 701,901
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Manufacturing Industries (4.4%) International Game Technology (a) 7,800 $ 586,638 Pharmaceuticals (9.5%) Amgen Inc. (a) 14,500 675,120 Genentech, Inc. (a) 16,900 576,121 -------------- TOTAL COMMON STOCKS (COST: $18,644,338) 12,762,013 -------------- TOTAL INVESTMENT SECURITIES (COST: $18,644,338) $ 12,762,013 ============== SUMMARY: Investments, at market value 96.5% $ 12,762,013 Other assets in excess of liabilities 3.5% 465,642 ------------- -------------- Net assets 100.0% $ 13,227,655 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. 98 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX ISABELLE SMALL CAP VALUE
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (90.9%) Apparel Products (0.6%) Tommy Hilfiger Corporation (a) 70,800 $ 534,540 Automotive (3.6%) GenCorp Inc. (b) 163,500 1,337,430 National R.V. Holdings, Inc. (a) 200,500 1,130,820 Transpro, Inc. (a) 132,300 668,115 Beverages (3.8%) Coca-Cola Bottling Co. Consolidated 61,400 3,271,392 Business Services (4.1%) Butler International, Inc. (a) 698,500 370,205 Idine Rewards Network Inc. 281,900 2,537,100 Westaff, Inc. (a) 267,500 588,500 Chemicals & Allied Products (9.0%) American Vanguard Corporation 83,600 1,897,720 Crompton Corporation 290,300 1,924,689 PolyOne Corporation 331,900 2,655,200 Terra Nitrogen Company, L.P. 262,200 1,258,560 Communications Equipment (3.2%) Ditech Communications Corporation (a) 859,800 1,616,424 EMS Technologies, Inc. (a) 79,100 1,108,191 Computer & Data Processing Services (3.5%) Elite Information Group, Inc. (a) 149,300 1,067,495 Progress Software Corporation (a) 63,100 787,488 Viewpoint Corporation (a) 364,500 1,129,950 Construction (1.3%) Quanta Services, Inc. (a) 356,900 1,134,942 Electrical Goods (3.3%) Craftmade International, Inc. 155,600 2,046,140 Pioneer-Standard Electronics, Inc. (b) 112,910 790,370 Electronic & Other Electric Equipment (3.7%) Magnetek, Inc. (a) 279,600 1,336,488 The Lamson & Sessions Co. (a) 512,800 1,846,080 Electronic Components & Accessories (2.7%) Skyworks Solutions, Inc. (a) (b) 231,900 1,646,490 Woodhead Industries, Inc. 65,200 671,560 Fabricated Metal Products (5.1%) Material Sciences Corporation (a) 130,500 1,430,280 Shaw Group Inc. (The) (a) (b) 196,600 2,941,136 Food & Kindred Products (1.3%) Poore Brothers, Inc. (a) 551,800 1,153,262 Holding & Other Investment Offices (2.9%) 4Kids Entertainment, Inc. (a) (b) 92,400 2,499,420 Industrial Machinery & Equipment (6.6%) DT Industries, Inc. (a) 375,400 731,655 Gehl Company (a) 170,300 1,605,929 GSI Lumonics Inc. (a) 148,500 738,045 JLG Industries, Inc. 160,100 1,272,795 NACCO Industries, Inc. - Class A 31,300 1,352,160 Instruments & Related Products (6.0%) Analogic Corporation 3,200 127,904 Signal Technology Corporation (a) 270,100 3,346,539 Sypris Solutions, Inc. 157,100 1,658,976
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Manufacturing Industries (1.4%) Oneida Ltd. 104,500 $ 1,238,325 Oil & Gas Extraction (1.4%) Mission Resources Corporation (a) 322,600 141,944 Southwestern Energy Company (a) 78,100 877,844 Willbros Group, Inc. (a) 30,400 225,264 Paper & Allied Products (1.7%) Wausau-Mosinee Paper Corporation 151,400 1,445,870 Paper & Paper Products (0.4%) United Stationers Inc. 11,100 330,003 Paperboard Containers & Boxes (1.7%) Graphic Packaging International Corporation (a) 194,700 1,450,515 Petroleum Refining (0.7%) Tesoro Petroleum Corporation (a) 173,800 566,588 Pharmaceuticals (11.7%) ARIAD Pharmaceuticals, Inc. (a) 663,900 1,546,887 EPIX Medical, Inc. (a) 133,200 845,820 PRAECIS PHARMACEUTICALS INCORPORATED (a) 883,500 2,403,120 Scios Inc. (a) (b) 75,800 2,187,588 United Therapeutics Corporation (a) (b) 211,200 3,157,440 Primary Metal Industries (6.1%) AK Steel Holding Corporation (a) 295,100 2,136,524 Commonwealth Industries, Inc. 382,800 2,361,876 RTI International Metals, Inc. (a) 74,600 772,110 Radio, Television & Computer Stores (2.3%) InterTAN, Inc. (a) 275,700 1,957,470 Telecommunications (1.4%) D&E Communications, Inc. 186,000 1,199,700 Wholesale Trade Durable Goods (1.4%) A.M. Castle & Co. 192,300 1,205,721 -------------- TOTAL COMMON STOCKS (COST: $96,485,424) 78,264,599 -------------- TOTAL INVESTMENT SECURITIES (COST: $96,485,424) $ 78,264,599 ============== SUMMARY: Investments, at market value 90.9% $ 78,264,599 Other assets in excess of liabilities 9.1% 7,846,512 ------------- -------------- Net assets 100.0% $ 86,111,111 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $13,836,113. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. 99 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JANUS BALANCED
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS (12.2%) U.S. Treasury Bond 6.50%, due 05/15/2005 (b) $ 1,060,000 $ 1,179,791 5.00%, due 08/15/2011 (b) 1,775,000 1,933,470 4.88%, due 02/15/2012 (b) 355,000 382,781 7.25%, due 05/15/2016 (b) 5,720,000 7,221,723 7.88%, due 02/15/2021 2,100,000 2,825,155 7.25%, due 08/15/2022 2,100,000 2,676,597 6.25%, due 08/15/2023 (b) 2,396,000 2,751,375 6.00%, due 02/15/2026 (b) 3,165,000 3,538,372 5.25%, due 02/15/2029 1,830,000 1,854,376 6.25%, due 05/15/2030 (b) 3,860,000 4,483,479 U.S. Treasury Note 3.38%, due 04/30/2004 2,095,000 2,152,374 2.13%, due 08/31/2004 (b) 1,935,000 1,951,958 5.88%, due 11/15/2004 (b) 3,980,000 4,311,821 5.75%, due 11/15/2005 (b) 2,440,000 2,698,201 6.50%, due 10/15/2006 1,710,000 1,966,031 5.63%, due 05/15/2008 2,825,000 3,196,979 6.00%, due 08/15/2009 (b) 2,125,000 2,456,118 5.75%, due 08/15/2010 (b) 1,770,000 2,021,188 -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST: $46,750,371) 49,601,789 -------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (9.2%) Fannie Mae 3.63%, due 04/15/2004 595,000 611,651 5.63%, due 05/14/2004 5,990,000 6,344,943 6.50%, due 08/15/2004 595,000 643,332 5.50%, due 05/02/2006 2,630,000 2,877,241 4.75%, due 01/02/2007 1,235,000 1,302,843 5.00%, due 01/15/2007 2,905,000 3,134,178 5.25%, due 01/15/2009 1,050,000 1,137,653 6.38%, due 06/15/2009 180,000 206,373 6.25%, due 02/01/2011 1,865,000 2,058,179 6.00%, due 05/15/2011 220,000 245,126 5.38%, due 11/15/2011 (b) 4,010,000 4,281,758 Federal Home Loan Bank 4.88%, due 05/14/2004 3,040,000 3,181,928 3.38%, due 06/15/2004 2,735,000 2,804,849 6.50%, due 11/15/2005 3,555,000 3,969,691 Freddie Mac 4.25%, due 06/15/2005 2,165,000 2,274,075 5.75%, due 04/15/2008 820,000 912,970 5.88%, due 03/21/2011 1,340,000 1,448,904 -------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST: $35,593,277) 37,435,694 -------------- CORPORATE DEBT SECURITIES (22.0%) Aerospace (1.3%) Honeywell International Inc. 5.13%, due 11/01/2006 1,410,000 1,481,204 Lockheed Martin Corporation 7.25%, due 05/15/2006 610,000 685,570 8.20%, due 12/01/2009 750,000 908,228 7.65%, due 05/01/2016 1,775,000 2,186,976 Amusement & Recreation Services (0.0%) Premier Parks Inc. 9.75%, due 06/15/2007 150,000 138,750 Automotive (0.6%) Delphi Corporation 6.55%, due 06/15/2006 1,265,000 1,330,102 Honeywell International Inc. 6.13%, due 11/01/2011 1,220,000 1,294,810
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Beverages (2.9%) Anheuser-Busch Companies, Inc. 5.65%, due 09/15/2008 $ 2,220,000 $ 2,449,015 5.75%, due 04/01/2010 600,000 649,967 6.00%, due 04/15/2011 1,280,000 1,413,613 7.55%, due 10/01/2030 480,000 590,768 6.80%, due 01/15/2031 525,000 591,838 6.80%, due 08/20/2032 700,000 791,034 Coca Cola Enterprises Inc. 5.38%, due 08/15/2006 950,000 1,025,262 6.13%, due 08/15/2011 1,450,000 1,593,810 4.38%, due 09/15/2009 1,110,000 1,113,450 7.13%, due 09/30/2009 895,000 1,035,289 Pepsi Bottling Group, Inc. (The) 5.63%, due 02/17/2009 480,000 517,152 Business Services (0.3%) Clear Channel Communications, Inc. 6.00%, due 11/01/2006 1,105,000 1,137,144 Chemicals & Allied Products (0.7%) Dow Chemical Company (The) 6.13%, due 02/01/2011 1,570,000 1,556,333 International Flavors & Fragrances Inc. 6.45%, due 05/15/2006 1,150,000 1,248,829 Commercial Banks (0.8%) Citigroup Inc. 7.25%, due 10/01/2010 1,435,000 1,626,075 6.63%, due 06/15/2032 435,000 443,216 Firstar Bank, NA 7.13%, due 12/01/2009 150,000 168,162 US Bank NA 5.70%, due 12/15/2008 975,000 1,057,853 Communication (1.8%) Comcast Cable Communications, Inc. 7.13%, due 06/15/2013 215,000 205,344 Cox Communications, Inc. 7.50%, due 08/15/2004 375,000 385,308 7.75%, due 08/15/2006 220,000 233,394 7.13%, due 10/01/2012 460,000 475,266 TCI Communications, Inc. 6.38%, due 05/01/2003 2,625,000 2,614,316 8.65%, due 09/15/2004 160,000 161,704 Viacom Inc. 7.75%, due 06/01/2005 1,135,000 1,257,935 7.70%, due 07/30/2010 1,030,000 1,205,578 Viacom, Inc. - Class A 5.63%, due 08/15/2012 600,000 623,045 Computer & Office Equipment (0.5%) Apple Computer, Inc. 6.50%, due 02/15/2004 975,000 972,563 Sun Microsystems, Inc. 7.35%, due 08/15/2004 190,000 190,120 7.65%, due 08/15/2009 955,000 962,757 Department Stores (0.4%) Meyer (Fred) Stores, Inc. 7.45%, due 03/01/2008 1,415,000 1,592,442 Electronic & Other Electric Equipment (0.4%) Maytag Corporation - Series E 6.88%, due 12/01/2006 1,400,000 1,547,050 Food & Kindred Products (1.1%) General Mills, Inc. 5.13%, due 02/15/2007 970,000 1,018,683 6.00%, due 02/15/2012 (b) 640,000 685,518 Kellogg Company 5.50%, due 04/01/2003 2,600,000 2,631,496 7.45%, due 04/01/2031 250,000 295,268
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS BALANCED 100 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Food Stores (1.2%) Kroger Co. (The) 7.80%, due 08/15/2007 $ 565,000 $ 639,889 7.00%, due 05/01/2018 210,000 216,958 6.80%, due 12/15/2018 380,000 383,673 Safeway Inc. 6.15%, due 03/01/2006 645,000 698,309 6.50%, due 11/15/2008 503,000 556,594 6.50%, due 03/01/2011 580,000 631,723 7.25%, due 02/01/2031 1,735,000 1,897,271 Furniture & Fixtures (0.3%) Lear Corporation 7.96%, due 05/15/2005 1,025,000 1,060,875 Hotels & Other Lodging Places (0.2%) Starwood Hotels & Resorts Worldwide, Inc. - 144A (c) 7.38%, due 05/01/2007 475,000 453,625 7.88%, due 05/01/2012 355,000 339,913 Industrial Machinery & Equipment (0.3%) Black & Decker Corporation 7.13%, due 06/01/2011 925,000 1,046,169 Insurance (0.4%) UnitedHealth Group Incorporated 7.50%, due 11/15/2005 700,000 787,792 5.20%, due 01/17/2007 730,000 774,234 Insurance Agents, Brokers & Service (0.3%) Marsh & McLennan Companies, Inc. 5.38%, due 03/15/2007 970,000 1,039,927 Life Insurance (0.8%) AIG SunAmerica Global Financing IX - 144A (c) 5.10%, due 01/17/2007 1,965,000 2,062,144 SunAmerica, Inc. 6.75%, due 10/01/2007 1,000,000 1,126,044 Lumber & Other Building Materials (1.2%) Home Depot, Inc. (The) 6.50%, due 09/15/2004 4,600,000 4,968,695 Motion Pictures (0.4%) AOL Time Warner Inc. 9.15%, due 02/01/2023 1,125,000 1,150,364 7.70%, due 05/01/2032 665,000 610,772 Personal Credit Institutions (2.6%) American General Finance Corporation 5.38%, due 09/01/2009 410,000 417,480 American General Finance Corporation - Series F 5.88%, due 07/14/2006 1,250,000 1,328,536 General Electric Capital Corporation 7.25%, due 05/03/2004 680,000 731,314 4.25%, due 01/28/2005 (b) 1,250,000 1,293,636 5.35%, due 03/30/2006 1,490,000 1,579,805 6.75%, due 03/15/2032 660,000 691,248 General Motors Acceptance Corporation 6.75%, due 12/10/2002 2,300,000 2,305,472 5.80%, due 03/12/2003 (b) 865,000 869,093 5.36%, due 07/27/2004 820,000 818,289 5.25%, due 05/16/2005 575,000 562,333 Pharmaceuticals (0.6%) Pfizer Inc. 5.63%, due 02/01/2006 1,290,000 1,403,352 6.00%, due 01/15/2008 1,000,000 1,103,790 Restaurants (0.2%) YUM! Brands, Inc. 7.70%, due 07/01/2012 685,000 708,975 Security & Commodity Brokers (1.1%) American Express Company 6.75%, due 06/23/2004 1,400,000 1,504,374 Salomon Smith Barney Holdings Inc. 6.50%, due 02/15/2008 1,670,000 1,835,262 Schwab (Charles) Corporation (The) 8.05%, due 03/01/2010 1,100,000 1,289,804
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Telecommunications (0.4%) VoiceStream Wireless Corporation 10.38%, due 11/15/2009 $ 1,430,000 $ 1,472,900 Textile Mill Products (0.1%) Mohawk Industries, Inc. 7.20%, due 04/15/2012 285,000 315,656 Variety Stores (1.1%) Target Corporation 5.50%, due 04/01/2007 1,310,000 1,399,508 5.40%, due 10/01/2008 400,000 425,605 Wal-Mart Stores, Inc. 5.45%, due 08/01/2006 (b) 1,125,000 1,226,298 6.88%, due 08/10/2009 1,125,000 1,304,198 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $83,463,134) 89,124,136 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (1.0%) Automotive (0.7%) Ford Motor Company Capital Trust II 78,900 $ 2,895,630 Printing & Publishing (0.3%) Tribune Company 14,245 1,014,956 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $5,677,374) 3,910,586 -------------- PREFERRED STOCKS (0.4%) Automotive (0.4%) General Motors Corporation 87,290 1,819,997 -------------- TOTAL PREFERRED STOCKS (COST: $2,352,165) 1,819,997 -------------- COMMON STOCKS (44.5%) Air Transportation (0.5%) FedEx Corporation (b) 37,285 1,983,189 Amusement & Recreation Services (0.1%) Disney (Walt) Company (The) 21,820 364,394 Automotive (2.1%) Bayerische Motoren Werke AG (BMW) (b) 99,358 3,543,265 Harley-Davidson, Inc. (b) 23,500 1,229,050 Honeywell International Inc. 155,030 3,711,418 Beverages (2.9%) Anheuser-Busch Companies, Inc. 107,910 5,693,332 Diageo PLC 285,420 3,217,523 PepsiCo, Inc. 68,570 3,023,937 Business Services (0.4%) Accenture Ltd. (a) (b) 89,505 1,510,844 Chemicals & Allied Products (2.4%) Avon Products, Inc. 9,190 445,623 Colgate-Palmolive Company 33,365 1,834,408 du Pont (E.I.) de Nemours and Company 44,935 1,853,569 Lauder (Estee) Companies Inc. (The) - Class A (b) 64,915 1,890,325 Procter & Gamble Company (The) 43,420 3,840,499 Commercial Banks (3.2%) Bank of America Corporation 40,970 2,859,706 Citigroup Inc. 171,002 6,318,524 U.S. Bancorp 156,611 3,302,926 Communication (2.9%) Comcast Corporation - Class A (a) (b) 58,194 1,339,044 Cox Communications, Inc. - Class A (a) 41,500 1,137,100 Liberty Media Corporation - Class A (a) 339,560 2,808,161 Ono Finance - warrants (d) 350 35 Viacom, Inc. - Class B (a) 142,828 6,371,557 Computer & Data Processing Services (3.5%) Automatic Data Processing, Inc. 179,110 7,617,547 Cadence Design Systems, Inc. (a) 122,545 1,241,381
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS BALANCED 101 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Computer & Data Processing Services (continued) Microsoft Corporation (a) 80,065 $ 4,281,076 Yahoo! Inc. (a) (b) 47,940 715,265 Computer & Office Equipment (1.0%) Apple Computer, Inc. (a) 64,920 1,043,264 Lexmark International Group, Inc. (a) (b) 52,705 3,131,731 Electric Services (0.5%) EnCana Corporation (CAD) 21,714 630,406 EnCana Corporation (USD) 51,530 1,499,523 Electronic & Other Electric Equipment (0.5%) General Electric Company 86,065 2,173,141 Electronic Components & Accessories (0.9%) Linear Technology Corporation 38,310 1,058,888 Maxim Integrated Products 38,245 1,217,721 Texas Instruments Incorporated 78,695 1,248,103 Environmental Services (0.1%) Waste Management, Inc. 16,885 388,693 Food & Kindred Products (0.9%) Heinz (H.J.) Company 53,485 1,720,078 Unilever NV - NY Shares 33,000 2,112,330 Food Stores (0.3%) Kroger Co. (The) (a) 94,985 1,409,577 Health Services (0.3%) Tenet Healthcare Corporation (a) 39,777 1,143,589 Hotels & Other Lodging Places (1.2%) Fairmont Hotels & Resorts Inc. 34,616 850,169 Marriott International, Inc. - Class A (b) 96,985 2,999,746 Starwood Hotels & Resorts Worldwide, Inc. 41,055 956,582 Industrial Machinery & Equipment (0.3%) SPX Corporation (a) (b) 28,330 1,190,143 Insurance (5.1%) AFLAC Incorporated 125,055 3,806,674 Allstate Corporation (The) 78,990 3,142,222 American International Group, Inc. 76,716 4,798,586 Berkshire Hathaway Inc. - Class B (a) 2,364 5,815,440 Travelers Property Casualty Corp. - Class A (a) 7,971 105,775 Travelers Property Casualty Corp. - Class B (a) 16,377 221,417 XL Capital Ltd. - Class A 32,905 2,505,716 Insurance Agents, Brokers & Service (1.8%) Marsh & McLennan Companies, Inc. 158,505 7,403,769 Lumber & Other Building Materials (0.2%) Home Depot, Inc. (The) 28,890 834,343 Manufacturing Industries (0.3%) Mattel, Inc. 59,415 1,090,859 Medical Instruments & Supplies (0.7%) Medtronic, Inc. 66,570 2,982,336 Metal Mining (0.0%) Companhia Vale do Rio Doce - ADR (a) (b) 500 13,175 Motion Pictures (0.7%) AOL Time Warner Inc. (a) 190,280 2,806,630 Oil & Gas Extraction (2.5%) Apache Corporation (b) 53,000 2,865,180 Burlington Resources Inc. 94,310 3,885,572 Total Fina Elf SA 24,339 3,353,731 Paper & Allied Products (1.4%) 3M Company 44,035 5,589,803 Petroleum Refining (1.6%) Exxon Mobil Corporation 197,040 6,632,366 Pharmaceuticals (2.2%) Johnson & Johnson 38,470 2,260,113 Pfizer Inc. 111,265 3,534,889 Schering-Plough Corporation 68,480 1,462,048 Wyeth 44,805 1,500,968
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Printing & Publishing (1.7%) Gannett Co., Inc. 91,315 $ 6,933,548 Railroads (0.4%) Canadian National Railway Company 35,565 1,517,559 Telecommunications (0.2%) AT&T Corp. 77,445 1,009,883 Tobacco Products (0.2%) Philip Morris Companies Inc. 23,370 952,328 Transportation Equipment (0.7%) General Dynamics Corporation 34,430 2,724,446 Variety Stores (0.8%) Costco Wholesale Corporation (a) 12,145 412,080 Target Corporation 2,035 61,294 Wal-Mart Stores, Inc. 49,825 2,668,129 -------------- TOTAL COMMON STOCKS (COST: $194,603,542) 179,798,261 -------------- TOTAL INVESTMENT SECURITIES (COST: $368,439,863) $ 361,690,463 ============== SUMMARY: Investments, at market value 89.3% $ 361,690,463 Other assets in excess of liabilities 10.7% 43,301,594 ------------- -------------- Net assets 100.0% $ 404,992,057 ============= ==============
FORWARD FOREIGN CURRENCY CONTRACTS:
- ------------------------------------------------------------------------- AMOUNT IN NET UNREALIZED BOUGHT SETTLEMENT U.S. DOLLARS APPRECIATION CURRENCY (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION) - ------------------------------------------------------------------------- British Pound (625,635) 11/01/02 $ (975,052) $ (3,816)
- -------------------------------------------------------------------------------- INVESTMENTS BY COUNTRY:
- ------------------------------------------------------------------------------------------ MARKET PERCENTAGE VALUE - ------------------------------------------------------------------------------------------ Canada 0.2% $ 630,406 France 0.9% 3,353,731 Germany 1.0% 3,543,265 Spain 0.0% 35 United Kingdom 0.9% 3,217,523 United States 97.0% 350,945,503 ------------- -------------- Investments, at market value 100.0% $ 361,690,463 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $45,304,395. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (c) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. (d) Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees. DEFINITIONS: ADR American Depositary Receipt 102 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JANUS CAPITAL APPRECIATION
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (90.0%) Amusement & Recreation Services (1.1%) Westwood One, Inc. 30,185 $ 1,095,716 Business Services (8.4%) BISYS Group, Inc. (The) (a) 52,355 937,155 eBay, Inc. (a) 16,640 1,052,646 Hotels.com - Class A (a) (b) 3,700 230,695 Lamar Advertising Company (a) 88,270 2,995,883 Moody's Corporation 33,400 1,573,140 Robert Half International Inc. (a) 57,510 960,417 Valassis Communications, Inc. (a) 17,350 447,630 Chemicals & Allied Products (1.1%) Praxair, Inc. 5,795 315,828 Smith International, Inc. (a) (b) 23,390 731,171 Commercial Banks (4.6%) Commerce Bancorp, Inc. (b) 11,580 531,638 Concord EFS, Inc. (a) 19,290 275,461 M&T Bank Corporation (b) 8,675 710,656 National Commerce Financial Corporation 39,245 960,718 North Fork Bancorporation, Inc. 15,800 607,668 Northern Trust Corporation 40,100 1,396,282 Communication (1.7%) Certegy Inc. (a) 21,560 452,760 Echostar Communications Corporation - Class A (a)(b) 60,745 1,238,591 Computer & Data Processing Services (1.5%) Cadence Design Systems, Inc. (a) 38,035 385,295 Electronic Arts Inc. (a) (b) 16,175 1,053,316 Computer & Office Equipment (1.1%) Apple Computer, Inc. (a) 65,550 1,053,389 Construction (1.3%) NVR, Inc. (a) (b) 3,900 1,322,100 Educational Services (2.4%) Apollo Group, Inc. - Class A (a) (b) 57,901 2,402,891 Electronic & Other Electric Equipment (0.7%) AMETEK, Inc. 20,035 707,035 Electronic Components & Accessories (1.7%) Cree, Inc. (a) (b) 25,215 434,959 Integrated Device Technology, Inc. (a) (b) 39,450 389,648 Marvell Technology Group Ltd. (a) (b) 24,000 389,040 National Semiconductor Corporation (a) 34,320 455,770 Environmental Services (0.1%) Allied Waste Industries, Inc. (a) (b) 16,345 133,212 Fabricated Metal Products (0.7%) Stanley Works (The) 22,740 736,094 Food & Kindred Products (1.5%) Bunge Limited 5,810 147,458 Dean Foods Company (a) (b) 36,100 1,353,389 Gas Production & Distribution (2.2%) Kinder Morgan, Inc. 58,625 2,146,260 Health Services (5.5%) Community Health Systems, Inc. (a) (b) 32,810 771,035 Health Management Associates, Inc. - Class A (b) 89,045 1,702,539 Laboratory Corporation of America Holdings (a) 65,375 1,575,538 Quest Diagnostics Incorporated (a) 21,755 1,388,622 Hotels & Other Lodging Places (1.3%) Starwood Hotels & Resorts Worldwide, Inc. 56,835 1,324,256 Industrial Machinery & Equipment (1.4%) Novellus Systems, Inc. (a) 27,915 882,114 SPX Corporation (a) (b) 12,780 536,888 Instruments & Related Products (1.7%) KLA-Tencor Corporation (a) (b) 20,480 729,293 Millipore Corporation (b) 27,420 932,554
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Insurance (14.4%) AFLAC Incorporated 63,150 $ 1,922,285 Anthem, Inc. (a) 15,730 990,990 Berkshire Hathaway Inc. - Class B (a) 1,319 3,244,739 Everest Re Group, Ltd. 14,830 860,437 First Health Group Corp. (a) 58,370 1,516,453 MGIC Investment Corporation 32,275 1,354,259 Montpelier Re Holdings Ltd. (a) (b) 9,930 252,222 RenaissanceRe Holdings Ltd. (b) 32,970 1,351,770 W.R. Berkley Corporation 29,687 1,102,872 XL Capital Ltd. - Class A 18,445 1,404,587 Lumber & Other Building Materials (0.2%) Fastenal Company (b) 6,180 209,811 Management Services (1.4%) Paychex, Inc. 47,968 1,382,438 Manufacturing Industries (2.5%) International Game Technology (a) 32,935 2,477,040 Medical Instruments & Supplies (6.0%) Apogent Technologies, Inc. (a) 61,550 1,118,979 Bard (C.R.), Inc. 17,705 990,241 Biomet, Incorporated 1,055 31,080 St. Jude Medical, Inc. (a) 76,580 2,727,013 Stryker Corporation 16,480 1,039,888 Metal Cans & Shipping Containers (1.4%) Ball Corporation (b) 28,575 1,383,887 Oil & Gas Extraction (4.1%) EOG Resources, Inc. (b) 45,530 1,685,976 Ocean Energy, Inc. 41,565 774,356 Pioneer Natural Resources Company 61,930 1,540,199 Personal Services (1.4%) Cendant Corp. (a) 116,220 1,336,530 Petroleum Refining (1.1%) Murphy Oil Corporation 12,925 1,083,503 Pharmaceuticals (3.1%) Alcon, Inc. (a) 11,220 460,244 Barr Laboratories, Inc. (a) 7,205 423,870 Enzon, Inc. (a) (b) 37,430 726,142 Forest Laboratories, Inc. (a) 9,120 893,669 King Pharmaceuticals, Inc. (a) 33,284 510,909 Radio & Television Broadcasting (4.6%) Cox Radio, Inc. - Class A (a) 37,910 899,983 Entercom Communications Corp. (a) (b) 21,180 1,042,480 Hispanic Broadcasting Corporation (a) 47,935 1,030,603 USA Networks, Inc. (a) (b) 62,985 1,592,891 Railroads (0.7%) Canadian National Railway Company 12,515 534,015 CSX Corporation (b) 5,785 159,666 Residential Building Construction (0.3%) Clayton Homes, Inc. (b) 29,720 336,430 Restaurants (0.9%) Darden Restaurants, Inc. 4,115 78,103 YUM! Brands, Inc. (a) 34,460 776,384 Retail Trade (0.7%) Staples, Inc. (a) 43,515 674,483 Savings Institutions (0.4%) Sovereign Bancorp, Inc. (b) 25,445 358,266 Security & Commodity Brokers (2.6%) Lehman Brothers Holdings, Inc. 20,805 1,108,282 Schwab (Charles) Corporation (The) 48,525 445,460 T. Rowe Price Group, Inc. 36,235 1,022,914 Textile Mill Products (1.4%) Mohawk Industries, Inc. (a) 24,895 1,333,127 Transportation & Public Utilities (0.6%) Expeditors International of Washington, Inc. 20,010 630,515
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS CAPITAL APPRECIATION 103 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Trucking & Warehousing (1.0%) CNF Transportation Inc. 31,310 $ 1,007,869 Variety Stores (0.5%) Fred's, Inc. 16,405 447,709 Wholesale Trade Durable Goods (0.7%) Grainger (W.W.), Inc. 13,605 659,298 -------------- TOTAL COMMON STOCKS (COST: $101,147,382) 88,401,617 -------------- TOTAL INVESTMENT SECURITIES (COST: $101,147,382) $ 88,401,617 ============== SUMMARY: Investments, at market value 90.0% $ 88,401,617 Other assets in excess of liabilities 10.0% 9,844,451 ------------- -------------- Net assets 100.0% $ 98,246,068 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $17,393,829. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. 104 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JANUS FLEXIBLE INCOME
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS (21.3%) U.S. Treasury Bond 3.63%, due 03/31/2004 $ 500,000 $ 514,952 4.88%, due 02/15/2012 (a)(c) 2,990,000 3,223,985 4.38%, due 08/15/2012 (a) 3,140,000 3,259,713 7.25%, due 05/15/2016 (a) 3,085,000 3,894,933 7.25%, due 08/15/2022 2,385,000 3,039,849 6.25%, due 08/15/2023 (a) 6,500,000 7,464,080 6.25%, due 05/15/2030 1,360,000 1,579,671 5.38%, due 02/15/2031 (a) 895,000 944,680 U.S. Treasury Inflation Index 3.38%, due 01/15/2012 376,494 407,084 3.00%, due 07/15/2012 2,311,270 2,430,083 U.S. Treasury Note 3.50%, due 11/15/2006 (a) 962,000 997,694 4.38%, due 05/15/2007 4,530,000 4,856,101 4.75%, due 11/15/2008 (a) 1,800,000 1,955,110 -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST: $33,262,839) 34,567,935 -------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (19.9%) Fannie Mae 3.88%, due 03/15/2005 (a) 12,725,000 13,254,475 4.38%, due 10/15/2006 (a) 530,000 559,216 5.00%, due 01/15/2007 2,250,000 2,427,505 5.25%, due 01/15/2009 3,465,000 3,754,255 6.25%, due 02/01/2011 2,635,000 2,907,936 6.00%, due 05/15/2011 225,000 250,697 6.13%, due 03/15/2012 415,000 465,674 6.63%, due 11/15/2030 4,285,000 4,856,083 Freddie Mac 5.25%, due 01/15/2006 1,615,000 1,747,593 5.88%, due 03/21/2011 2,000,000 2,162,544 -------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST: $31,089,623) 32,385,978 -------------- FOREIGN GOVERNMENT OBLIGATIONS (1.3%) Federal Republic of Germany 5.00%, due 07/04/2012 1,600,000 1,640,433 United Mexican States 7.50%, due 01/14/2012 (USD) 225,000 234,562 8.00%, due 09/24/2022 (USD) 300,000 292,500 -------------- TOTAL FOREIGN GOVERNMENT OBLIGATIONS (COST: $2,173,822) 2,167,495 -------------- CORPORATE DEBT SECURITIES (46.0%) Amusement & Recreation Services (0.5%) Bally Total Fitness Holding Corporation - Series D 9.88%, due 10/15/2007 740,000 636,400 Hard Rock Hotel, Inc. - Series B 9.25%, due 04/01/2005 250,000 246,875 Apparel Products (0.2%) Cintas Corporation No. 2 6.00%, due 06/01/2012 245,000 265,580 Auto Repair, Services & Parking (0.6%) PHH Corporation 8.13%, due 02/03/2003 1,000,000 1,000,000 Automotive Dealers & Service Stations (0.3%) AutoZone, Inc. 5.88%, due 10/15/2012 475,000 484,125 Beverages (2.2%) Anheuser-Busch Companies, Inc. 5.95%, due 01/15/2033 375,000 379,787 Coca Cola Enterprises Inc. 4.38%, due 09/15/2009 1,000,000 1,003,108 6.13%, due 08/15/2011 285,000 313,266 7.13%, due 08/01/2017 435,000 518,923 Coors (Adolph) Company 6.38%, due 05/15/2012 1,285,000 1,421,710
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Business Credit Institutions (2.7%) ChevronTexaco Capital Corporation (a) 3.50%, due 09/17/2007 $ 1,035,000 $ 1,046,989 Deere (John) Capital Corporation 4.13%, due 07/15/2005 290,000 297,506 Ford Motor Credit Company 5.75%, due 02/23/2004 1,500,000 1,478,504 National Rural Utilities Cooperative Finance Company 5.75%, due 08/28/2009 1,250,000 1,284,267 Pemex Master Trust - 144A (b) 8.63%, due 02/01/2022 300,000 296,250 Business Services (0.6%) ARAMARK Services, Inc. 7.00%, due 05/01/2007 430,000 454,472 6.38%, due 02/15/2008 400,000 407,103 Clear Channel Communications, Inc. 6.00%, due 11/01/2006 105,000 108,054 Chemicals & Allied Products (1.4%) Dial Corporation (The) 7.00%, due 08/15/2006 890,000 970,509 6.50%, due 09/15/2008 600,000 645,934 Proctor & Gamble Company (The) (a) 4.75%, due 06/15/2007 645,000 687,068 Commercial Banks (0.2%) Hudson United Bancorp 8.20%, due 09/15/2006 300,000 328,532 Communication (2.9%) Comcast Cable Communications, Inc. (a) 6.38%, due 01/30/2006 1,000,000 982,500 Cox Communications, Inc. 6.15%, due 08/01/2003 (d) 645,000 640,241 6.88%, due 06/15/2005 1,000,000 1,023,821 7.13%, due 10/01/2012 110,000 113,650 Echostar DBS Corporation 9.13%, due 01/15/2009 405,000 399,938 Mediacom Broadband LLC 11.00%, due 07/15/2013 200,000 173,000 TCI Communications, Inc. 6.38%, due 05/01/2003 375,000 373,474 Viacom Inc. 6.40%, due 01/30/2006 500,000 542,053 Viacom, Inc. - Class A 5.63%, due 08/15/2012 400,000 415,364 Computer & Office Equipment (0.8%) Apple Computer, Inc. 6.50%, due 02/15/2004 745,000 743,137 International Business Machines Corporation 4.25%, due 09/15/2009 500,000 496,122 Department Stores (0.4%) Meyer (Fred) Stores, Inc. 7.45%, due 03/01/2008 550,000 618,970 Drug Stores & Proprietary Stores (0.3%) CVS Corporation - 144A (b) 3.88%, due 11/01/2007 475,000 472,359 Electric Services (0.2%) Ameren Energy Generating Company 7.95%, due 06/01/2032 295,000 316,208 Electric, Gas & Sanitary Services (1.3%) Cinergy Corp. 6.25%, due 09/01/2004 1,000,000 1,005,449 Public Service Company of Colorado - 144A (b) 7.88%, due 10/01/2012 1,000,000 1,035,414 Electronic Components & Accessories (0.3%) Tyco International Group S.A. 6.38%, due 10/15/2011 500,000 425,000
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS FLEXIBLE INCOME 105 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Environmental Services (2.1%) Republic Services, Inc. 6.75%, due 08/15/2011 $ 850,000 $ 919,411 USA Waste Services, Inc. 7.00%, due 10/01/2004 1,250,000 1,287,112 Waste Management, Inc. 7.38%, due 08/01/2010 1,200,000 1,260,262 Fabricated Metal Products (0.3%) Gillette Company (The) 4.13%, due 08/30/2007 500,000 518,201 Food & Kindred Products (1.5%) Del Monte Foods Company 9.25%, due 05/15/2011 115,000 114,425 General Mills, Inc. (a) 6.00%, due 02/15/2012 125,000 133,890 Hormel Foods Corporation 6.63%, due 06/01/2011 390,000 436,323 Kellogg Company 6.00%, due 04/01/2006 650,000 707,417 Kellogg Company - Series B 6.60%, due 04/01/2011 750,000 841,881 Sara Lee Corporation 6.13%, due 11/01/2032 250,000 255,024 Food Stores (1.9%) Kroger Co. (The) 7.38%, due 03/01/2005 600,000 652,600 7.50%, due 04/01/2031 40,000 42,968 Marsh Supermarkets, Inc. 8.88%, due 08/01/2007 250,000 226,250 Safeway Inc. 6.15%, due 03/01/2006 1,140,000 1,234,221 6.50%, due 03/01/2011 500,000 544,589 Winn-Dixie Stores, Inc. (a) 8.88%, due 04/01/2008 400,000 400,000 Gas Production & Distribution (0.5%) Kinder Morgan, Inc. - 144A (b) 6.50%, due 09/01/2012 500,000 508,642 Southwest Gas Corporation 7.63%, due 05/15/2012 270,000 283,157 Health Services (5.2%) HCA Inc. 6.91%, due 06/15/2005 1,500,000 1,575,801 7.00%, due 07/01/2007 455,000 482,653 6.95%, due 05/01/2012 1,000,000 1,013,137 6.30%, due 10/01/2012 400,000 386,822 8.36%, due 04/15/2024 250,000 256,414 Quest Diagnostics Incorporated 6.75%, due 07/12/2006 1,250,000 1,363,159 7.50%, due 07/12/2011 775,000 872,264 Tenet Healthcare Corporation 5.38%, due 11/15/2006 1,400,000 1,456,147 6.38%, due 12/01/2011 1,000,000 1,058,863 Holding & Other Investment Offices (0.8%) Health Care Property Investors, Inc. 6.45%, due 06/25/2012 600,000 606,149 Health Care REIT, Inc. 8.00%, due 09/12/2012 725,000 720,512 Hotels & Other Lodging Places (0.2%) Wynn Las Vegas, LLC (Wynn Las Vegas Capital Corp.) 12.00%, due 11/01/2010 275,000 258,500 Industrial Machinery & Equipment (0.2%) Kennametal Inc. 7.20%, due 06/15/2012 300,000 303,908 Instruments & Related Products (0.6%) Raytheon Company 6.50%, due 07/15/2005 1,000,000 1,052,464
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Insurance (2.3%) CIGNA Corporation 6.38%, due 10/15/2011 $ 150,000 $ 143,783 StanCorp Financial Group, Inc. 6.88%, due 10/01/2012 1,250,000 1,242,335 UnitedHealth Group Incorporated 7.50%, due 11/15/2005 360,000 405,150 5.20%, due 01/17/2007 643,000 681,963 WellPoint Health Networks Inc. 6.38%, due 06/15/2006 1,185,000 1,274,435 Insurance Agents, Brokers & Service (0.1%) Marsh & McLennan Companies, Inc. 6.25%, due 03/15/2012 215,000 233,416 Life Insurance (0.3%) Delphi Financial Group, Inc. 8.00%, due 10/01/2003 500,000 514,723 Motion Pictures (1.1%) AMC Entertainment Inc. (a) 9.88%, due 02/01/2012 300,000 266,250 AOL Time Warner Inc. 5.63%, due 05/01/2005 750,000 747,129 7.25%, due 10/15/2017 750,000 701,285 Oil & Gas Extraction (0.4%) Magnum Hunter Resources, Inc. 9.60%, due 03/15/2012 190,000 199,500 Occidental Petroleum Corporation 5.88%, due 01/15/2007 450,000 482,224 Paper & Allied Products (0.2%) International Paper Company - 144A (b) 5.85%, due 10/30/2012 250,000 256,458 Personal Credit Institutions (2.7%) General Electric Capital Corporation 4.25%, due 01/28/2005 (a) 1,250,000 1,293,636 6.00%, due 06/15/2012 395,000 419,598 General Motors Acceptance Corporation 5.36%, due 07/27/2004 750,000 748,435 6.13%, due 08/28/2007 250,000 240,168 6.88%, due 08/28/2012 (a) 250,000 226,252 SLM Corporation 5.05%, due 11/14/2014 500,000 497,325 SLM Corporation - Series A 5.13%, due 08/27/2012 1,000,000 1,014,998 Personal Services (0.2%) Cendant Corporation 6.88%, due 08/15/2006 350,000 348,250 Petroleum & Petroleum Products (0.2%) TEPPCO Partners, L.P. 7.63%, due 02/15/2012 305,000 310,929 Petroleum Refining (0.8%) Conoco Funding Company 5.45%, due 10/15/2006 710,000 759,400 6.35%, due 10/15/2011 565,000 621,588 Printing & Publishing (1.8%) Belo Corp. 7.13%, due 06/01/2007 400,000 425,940 8.00%, due 11/01/2008 275,000 303,330 Dex Media East LLC (Dex Media Finance Co.) - 144A (b) 9.88%, due 11/15/2009 125,000 128,750 12.13%, due 11/15/2012 200,000 206,000 Gannett Co., Inc. 4.95%, due 04/01/2005 865,000 913,078 News America Holdings 8.50%, due 02/15/2005 135,000 142,726 News America Incorporated 6.63%, due 01/09/2008 810,000 830,996
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS FLEXIBLE INCOME 106 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Radio & Television Broadcasting (1.1%) British Sky Broadcasting Group PLC 7.30%, due 10/15/2006 $ 500,000 $ 505,000 6.88%, due 02/23/2009 1,000,000 987,500 Corus Entertainment Inc. (a) 8.75%, due 03/01/2012 295,000 304,587 Railroads (0.2%) CSX Corporation 4.88%, due 11/01/2009 250,000 249,605 Research & Testing Services (0.1%) Vicar Operating, Inc. 9.88%, due 12/01/2009 200,000 214,000 Restaurants (1.4%) McDonald's Corporation 5.38%, due 04/30/2007 475,000 512,494 3.88%, due 08/15/2007 500,000 510,279 Wendy's International, Inc. 6.20%, due 06/15/2014 1,000,000 1,099,115 YUM! Brands, Inc. 7.70%, due 07/01/2012 85,000 87,975 Savings Institutions (2.3%) Golden State Holdings Inc. 7.00%, due 08/01/2003 1,620,000 1,663,405 7.13%, due 08/01/2005 1,115,000 1,208,052 Sovereign Bancorp, Inc. 8.63%, due 03/15/2004 750,000 783,580 Stone, Clay & Glass Products (0.5%) Owens-Brockway Glass Container Inc. 8.88%, due 02/15/2009 280,000 287,700 Owens-Illinois, Inc. (a) 7.85%, due 05/15/2004 500,000 482,500 Telecommunications (1.3%) AT&T Broadband, LLC 7.88%, due 08/01/2013 270,000 274,148 Sprint Capital Corporation 5.88%, due 05/01/2004 750,000 704,557 8.38%, due 03/15/2012 305,000 256,677 Verizon Global Funding Corp. 6.88%, due 06/15/2012 750,000 800,051 Variety Stores (0.7%) Wal-Mart Stores, Inc. 6.88%, due 08/10/2009 1,000,000 1,159,287 Wholesale Trade Nondurable Goods (0.1%) Sysco Corporation - 144A (b) 6.10%, due 06/01/2012 135,000 150,420 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $72,030,551) 74,645,810 -------------- CONVERTIBLE BONDS (2.9%) Telecommunications (2.9%) Verizon Global Funding Corp. 5.75%, due 04/01/2003 800,000 807,301 4.25%, due 09/15/2005 3,825,000 3,978,000 -------------- TOTAL CONVERTIBLE BONDS (COST: $4,693,344) 4,785,301 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ PREFERRED STOCKS (0.1%) Savings Institutions (0.1%) Chevy Chase Bank, F.S.B. 3,500 $ 95,200 -------------- TOTAL PREFERRED STOCKS (COST: $116,375) 95,200 --------------
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ WARRANTS (0.0%) Communication (0.0%) Ono Finance PLC - warrants - 144A (b) 250 $ 3 Telecommunications (0.0%) Equinex, Inc. - warrants 130 1 VersaTel Telecom International - warrants 75 1 -------------- TOTAL WARRANTS (COST: $498) 5 -------------- TOTAL INVESTMENT SECURITIES (COST: $143,367,052) $ 148,647,724 ============== SUMMARY: Investments, at market value 91.5% $ 148,647,724 Other assets in excess of liabilities 8.5% 13,730,754 ------------- -------------- Net assets 100.0% $ 162,378,478 ============= ==============
FORWARD FOREIGN CURRENCY CONTRACTS:
- --------------------------------------------------------------------- AMOUNT IN NET UNREALIZED BOUGHT SETTLEMENT U.S. DOLLARS APPRECIATION CURRENCY (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION) - --------------------------------------------------------------------- Euro Dollar (1,600,000) 03/28/03 $ (1,559,171) $ (16,022)
- -------------------------------------------------------------------------------- FUTURES CONTRACTS:
- ------------------------------------------------------------------------------ AMOUNT IN NET UNREALIZED SETTLEMENT U.S. DOLLARS APPRECIATION CONTRACTS DATE BOUGHT (SOLD) (DEPRECIATION) - ------------------------------------------------------------------------------ 10-Year U.S. Treasury Note 45 12/19/2002 $ (5,162,344) $ 11,141
- -------------------------------------------------------------------------------- INVESTMENTS BY COUNTRY:
- ------------------------------------------------------------------------------------------- PERCENTAGE MARKET OF MARKET VALUE VALUE - ------------------------------------------------------------------------------------------- Germany 1.1% $ 1,640,434 United States 98.9% 147,007,290 ------------- -------------- Investments, at market value 100.00% $ 148,647,724 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $31,142,770. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (b) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. (c) At October 31, 2002, all or a portion of this security is segregated with the custodian to cover margin requirements for open future contracts. The market value of all securities segregated at October 31, 2002 is $107,826. (d) Floating or variable rate note. Rate is listed as of October 31, 2002. 107 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JANUS GLOBAL
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ PREFERRED STOCKS (1.6%) Brazil (1.0%) Petroleo Brasileiro SA - Petrobras - ADR 412,090 $ 4,969,805 Germany (0.6%) Porsche AG (b) 6,841 3,266,367 -------------- TOTAL PREFERRED STOCKS (COST: $13,042,693) 8,236,172 -------------- COMMON STOCKS (91.9%) Australia (0.9%) News Corporation Limited (The) 543,181 3,209,326 News Corporation Limited (The) - ADR 7,560 175,619 Westpac Banking Corporation 192,927 1,521,280 Bermuda (0.5%) Tyco International Ltd. (b) 179,560 2,596,438 Brazil (0.4%) Companhia Vale do Rio Doce - ADR (a) (b) 66,615 1,755,305 Petroleo Brasileiro SA - Petrobras - ADR 7,845 103,789 Canada (1.7%) EnCana Corporation (CAD) 287,157 8,336,815 EnCana Corporation (USD) 14,271 415,286 China (0.5%) PetroChina Company Limited 14,842,000 2,778,439 Denmark (0.7%) Danske Bank A/S 217,565 3,464,780 Finland (1.2%) Nokia Oyj 107,804 1,831,460 Stora Enso Oyj - R Shares 205,184 2,134,180 UPM-Kymmene Oyj 77,706 2,520,950 France (5.4%) Air Liquide 9,502 1,218,001 Aventis SA 23,049 1,380,215 Groupe Danone SA 28,246 3,665,444 Sanofi-Synthelabo 72,210 4,417,053 Schneider Electric SA 86,059 3,989,702 Societe Generale - Class A 51,069 2,587,625 Total Fina Elf SA 81,001 11,161,328 Germany (0.9%) BASF AG 95,712 3,564,943 Muenchener Rueckversicherungs - Gesellschaft AG 9,257 1,192,098 Hong Kong (1.9%) China Mobile (Hong Kong) Limited (a) 3,481,200 8,547,778 CNOOC Limited 952,000 1,190,137 Israel (1.6%) Check Point Software Technologies, Ltd. (a) (b) 74,625 1,029,079 Teva Pharmaceutical Industries Ltd. - ADR 97,110 7,519,227 Italy (2.4%) ENI - Ente Nazionale Idrocarburi (b) 443,515 6,117,892 Telecom Italia SpA - RNC 480,860 2,532,223 Telecom Italia SpA (b) 268,820 2,130,877 UniCredito Italiano SpA (b) 506,928 1,896,167 Japan (9.1%) Asahi Breweries, Ltd. 307,000 2,020,429 Dai Nippon Printing Co., Ltd. 232,000 2,371,716 Honda Motor Co., Ltd. 104,400 3,742,272 Hoya Corporation 48,700 3,344,223 Ito-Yokado Co., Ltd. 40,000 1,247,652 Japan Tobacco Inc. 267 1,715,759 Kao Corporation 238,000 5,441,333 Nissan Motor Co., Ltd. 859,000 6,600,139 Sony Corporation (b) 176,000 7,573,447 Takeda Chemical Industries, Ltd. 180,300 7,493,484 Yamanouchi Pharmaceutical Co., Ltd. 259,300 6,351,760 Mexico (1.6%) Grupo Televisa SA de CV - ADR (a) 150,440 4,227,364 Telefonos de Mexico SA de CV - ADR 130,405 3,977,353 Netherlands (2.7%) Akzo Nobel NV 65,213 1,950,920 Elsevier NV 88,497 1,103,704 Koninklijke Philips Electronics NV 101,610 1,821,853 Koninklijke Philips Electronics NV - NY Registered Shares 19,462 344,477 Unilever NV - CVA 50,704 3,252,223 Wolters Kluwer NV 320,168 5,616,876
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Russia (0.3%) YUKOS Oil Company - ADR (b) 10,965 $ 1,523,071 South Korea (2.9%) Hyundai Motor Company Limited 103,640 2,633,545 Kookmin Bank 102,143 3,404,767 Kookmin Bank - ADR 14,960 483,956 Samsung Electronics Co., Ltd. 27,640 7,829,063 SK Telecom Co., Ltd. 5,710 1,054,803 Spain (0.5%) Banco Popular Espanol SA 63,857 2,735,222 Sweden (2.2%) Assa Abloy AB - Class B (b) 531,831 5,257,314 Securitas AB - Class B (b) 435,150 6,060,254 Switzerland (6.4%) Givaudan SA - Registered Shares 4,636 1,941,221 Nestle SA - Registered Shares 26,703 5,726,336 Novartis AG 115,356 4,400,395 Serono SA - Class B 2,340 1,306,430 STMicroelectronics NV (b) 352,374 6,998,687 STMicroelectronics NV - NY Registered Shares (b) 106,481 2,094,481 Swiss Reinsurance Company - Registered Shares 37,421 2,598,857 Syngenta AG 12,709 756,478 UBS AG - Registered Shares (a) 166,014 7,913,194 United Kingdom (11.6%) Amersham PLC 167,069 1,508,256 Anglo American PLC 116,606 1,492,373 Barclays PLC 179,327 1,240,142 BOC Group PLC (The) 429,984 6,048,049 BP PLC 871,974 5,593,591 BP PLC - ADR 11,720 450,634 BT Group PLC 414,658 1,177,525 Compass Group PLC 597,816 2,649,359 Diageo PLC 689,949 7,777,755 Dixons Group PLC 730,234 2,176,508 GlaxoSmithKline PLC (b) 333,955 6,374,573 HBOS PLC 110,063 1,218,347 Pearson PLC 160,498 1,712,605 Reckitt Benckiser PLC 123,578 2,242,862 Reed International PLC 278,689 2,461,428 Royal Bank of Scotland Group PLC (The) 187,923 4,422,126 South African Breweries PLC 116,567 787,885 Standard Chartered PLC 235,226 2,738,177 Vodafone Group PLC 1,451,539 2,333,533 Willis Group Holdings Limited (a) 47,615 1,457,019 WPP Group PLC 764,121 5,182,682 United States (36.5%) Abbott Laboratories 135,480 5,672,548 Allstate Corporation (The) 154,665 6,152,574 Anadarko Petroleum Corporation 71,725 3,194,632 AOL Time Warner Inc. (a) 503,506 7,426,714 ARAMARK Corporation - Class B (a) 61,105 1,289,316 Automatic Data Processing, Inc. 93,430 3,973,578 Bank of New York Company, Inc. (The) 125,070 3,251,820 Cardinal Health, Inc. (b) 50,405 3,488,530 CIGNA Corporation 34,330 1,240,686 Citigroup Inc. 399,605 14,765,404 Clear Channel Communications, Inc. (a) 200,993 7,446,791 Coca-Cola Company (The) 59,275 2,755,102 Comcast Corporation - Class A (a) (b) 58,215 1,339,527 Costco Wholesale Corporation (a) 64,375 2,184,244 Disney (Walt) Company (The) (b) 149,245 2,492,392 Electronic Arts Inc. (a) 36,470 2,374,926 Fannie Mae 99,685 6,664,939 First Data Corporation 64,850 2,265,859 Fiserv, Inc. (a) (b) 91,957 2,872,737 Genentech, Inc. (a) 51,845 1,767,396 General Dynamics Corporation 64,280 5,086,476 General Electric Company 196,020 4,949,505 Goldman Sachs Group, Inc. (The) 18,890 1,352,524 Honeywell International Inc. 119,255 2,854,965 Johnson & Johnson 41,825 2,457,219 Lauder (Estee) Companies Inc. (The) - Class A (b) 157,285 4,580,139 Liberty Media Corporation - Class A (a) 332,445 2,749,320 Lockheed Martin Corporation 22,780 1,318,962 Marsh & McLennan Companies, Inc. 125,060 5,841,553 McGraw-Hill Companies, Inc. (The) 77,850 5,021,325 McKesson HBOC, Inc. 175,905 5,243,728 Medtronic, Inc. (b) 181,170 8,116,415 Microsoft Corporation (a) 181,325 9,695,448
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS GLOBAL 108 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ United States (continued) New York Times Company (The) - Class A 43,770 $ 2,118,906 NIKE, Inc. - Class B 63,535 2,998,217 Northrop Grumman Corporation (b) 15,725 1,621,719 Pfizer Inc. 270,575 8,596,167 Philip Morris Companies Inc. 245,600 10,008,199 Raytheon Company 115,215 3,398,843 SLM Corporation 38,905 3,997,100 Starwood Hotels & Resorts Worldwide, Inc. 67,875 1,581,488 UnitedHealth Group Incorporated 47,800 4,347,410 USA Networks, Inc. (a) (b) 144,885 3,664,142 Viacom, Inc. - Class B (a) 82,425 3,676,979 Waste Management, Inc. 135,195 3,112,189 -------------- TOTAL COMMON STOCKS (COST: $546,302,621) 481,952,596 -------------- TOTAL INVESTMENT SECURITIES (COST: $559,345,314) $ 490,188,768 ============== SUMMARY: Investments, at market value 93.5% $ 490,188,768 Other assets in excess of liabilities 6.5% 34,008,069 ------------- -------------- Net assets 100.0% $ 524,196,837 ============= ============== INVESTMENTS BY INDUSTRY: - ------------------------------------------------------------------------------------------ PERCENTAGE MARKET OF NET ASSETS VALUE - ------------------------------------------------------------------------------------------ Aerospace 0.6% $ 2,940,681 Amusement & Recreation Services 0.5% 2,492,392 Automotive 3.6% 19,097,288 Beer, Wine & Distilled Beverages 0.5% 2,808,314 Beverages 2.0% 10,532,857 Business Services 4.0% 20,955,586 Chemicals & Allied Products 5.1% 27,182,940 Commercial Banks 9.8% 51,643,007 Communication 2.4% 12,428,926 Communications Equipment 0.4% 1,831,460 Computer & Data Processing Services 3.8% 19,945,768 Electric Services 1.7% 8,752,101 Electronic & Other Electric Equipment 4.2% 22,518,345 Electronic Components & Accessories 2.2% 11,689,606 Environmental Services 0.6% 3,112,189 Food & Kindred Products 2.8% 14,585,224 Hotels & Other Lodging Places 0.3% 1,581,488 Instruments & Related Products 1.3% 6,743,066 Insurance 3.0% 15,531,625 Insurance Agents, Brokers & Service 1.4% 7,298,572 Machinery, Equipment & Supplies 0.8% 3,989,702 Manufacturing Industries 1.0% 5,257,314 Medical Instruments & Supplies 1.8% 9,624,671 Metal Mining 0.6% 3,247,678 Motion Pictures 2.1% 10,811,659 Oil & Gas Extraction 5.8% 31,039,093 Paper & Allied Products 0.9% 4,655,130 Personal Credit Institutions 0.8% 3,997,100 Petroleum Refining 1.2% 6,044,225 Pharmaceuticals 12.3% 65,088,510 Printing & Publishing 3.9% 20,406,560 Radio & Television Broadcasting 1.5% 7,891,506 Restaurants 0.8% 3,938,675 Retail Trade 0.7% 3,424,160 Rubber & Misc. Plastic Products 0.6% 2,998,217 Security & Commodity Brokers 0.3% 1,352,524 Telecommunications 3.3% 17,090,992 Tobacco Products 2.2% 11,723,958 Transportation Equipment 1.0% 5,086,476 U.S. Government Agencies 1.3% 6,664,939 Variety Stores 0.4% 2,184,244 ------------- -------------- Investments, at market value 93.5% $ 490,188,768 Other assets in excess of liabilities 6.5% 34,008,069 ------------- -------------- Net assets 100.0% $ 524,196,837 ============= ==============
FORWARD FOREIGN CURRENCY CONTRACTS: - -------------------------------------------------------------------------------- NET AMOUNT IN UNREALIZED BOUGHT SETTLEMENT U.S. DOLLARS APPRECIATION CURRENCY (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION) - -------------------------------------------------------------------------------- Australian Dollar 129,845 11/04/02 $ 71,644 $ 458 British Pound 77,047 11/01/02 120,079 470 British Pound 165,049 11/04/02 256,995 1,241 British Pound (26,800,000) 11/07/02 (41,383,034) (540,608) British Pound 14,000,000 11/07/02 21,709,354 191,057 British Pound (6,200,000) 04/15/03 (9,507,700) (95,795) Euro Dollar 1,793 11/04/02 1,765 11 Euro Dollar 57,319 11/05/02 56,370 408 Euro Dollar (75,400,000) 11/07/02 56,066,557 (2,419,932) Euro Dollar 58,400,000 11/07/02 (72,261,430) 1,776,834 Euro Dollar (13,800,000) 01/31/03 (13,463,112) (154,504) Euro Dollar 600,000 01/31/03 580,824 11,246 Euro Dollar (20,900,000) 02/21/03 (20,303,220) (302,479) Euro Dollar 10,200,000 02/01/03 9,907,534 148,835 Euro Dollar (12,500,000) 04/15/03 (12,151,578) (145,461) Hong Kong Dollar (106,200,000) 02/21/03 (13,611,192) 5,690 Hong Kong Dollar 17,800,000 02/21/03 2,281,421 (1,025) Japanese Yen (1,880,000,000) 11/07/02 (15,437,255) 84,406 Japanese Yen 1,290,000,000 11/07/02 10,592,830 (58,163) Japanese Yen (540,000,000) 01/31/03 (4,437,246) 10,580 Japanese Yen 320,000,000 01/31/03 2,668,891 (45,681) Japanese Yen (3,370,000,000) 02/21/03 (27,279,892) (368,602) Japanese Yen 245,000,000 02/21/03 1,969,736 40,318 Japanese Yen (390,000,000) 04/15/03 (3,170,665) (35,550) Korean Won (1,630,000,000) 02/03/03 (1,362,363) 23,554 Korean Won (10,675,000,000) 02/25/03 (8,470,254) (297,713) Mexican New Peso (38,700,000) 11/22/02 (3,880,245) 65,748 Swiss Franc 626,709 11/01/02 421,586 3,042 Swiss Franc 103,793 11/04/02 69,718 607 Swiss Franc (20,900,000) 11/07/02 (13,877,552) (284,517) Swiss Franc 11,300,000 11/07/02 7,513,397 143,607 Swiss Franc (9,600,000) 04/15/03 (6,430,007) (99,174) ------------- ------------- $(152,738,044) $ (2,341,094) ============= =============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $68,824,608. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt CVA Certificaaten van aandelen (share certificates) RNC Saving Non-Convertible Shares 109 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JANUS GROWTH
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (86.8%) Amusement & Recreation Services (3.6%) Mandalay Resort Group (a) 999,865 $ 28,286,181 MGM MIRAGE (a) (b) 484,130 15,056,443 Automotive (2.6%) Harley-Davidson, Inc. (b) 589,845 30,848,894 Business Services (12.5%) Clear Channel Communications, Inc. (a) 1,632,065 60,468,008 eBay Inc. (a) (b) 1,266,955 80,147,573 Hotels.com - Class A (a) (b) 126,865 7,910,033 Chemicals & Allied Products (4.8%) Avon Products, Inc. 233,190 11,307,383 Colgate-Palmolive Company 608,630 33,462,477 Procter & Gamble Company (The) 134,740 11,917,753 Commercial Banks (0.6%) Citigroup Inc. 209,070 7,725,137 Communication (13.5%) Liberty Media Corporation - Class A (a) 6,598,755 54,571,704 Viacom, Inc. - Class B (a) 2,377,550 106,062,505 Communications Equipment (0.8%) Nokia Oyj - ADR 585,285 9,727,437 Computer & Data Processing Services (1.7%) Cerner Corporation (a) (b) 453,605 16,152,874 Check Point Software Technologies, Ltd. (a) (b) 308,615 4,255,801 Computer & Office Equipment (0.5%) Cisco Systems, Inc. (a) 546,507 6,109,948 Electronic Components & Accessories (4.8%) Celestica Inc. (U.S.) (a) 485,270 6,696,726 Maxim Integrated Products (b) 1,155,575 36,793,508 Xilinx, Inc. (a) 731,328 13,887,919 Food Stores (0.2%) Krispy Kreme Doughnuts, Inc. (a) (b) 52,170 1,789,431 Furniture & Home Furnishings Stores (1.6%) Bed Bath & Beyond Inc. (a) 531,600 18,850,536 Health Services (1.1%) Quest Diagnostics Incorporated (a) 202,270 12,910,894 Industrial Machinery & Equipment (0.3%) ASM Lithography Holding NV - NY Registered Shares (a) 465,970 4,007,342 Insurance (2.6%) AFLAC Incorporated 757,100 23,046,124 WellPoint Health Networks Inc. (a) 113,185 8,512,644 Insurance Agents, Brokers & Service (1.4%) Marsh & McLennan Companies, Inc. 365,790 17,086,051 Lumber & Other Building Materials (1.0%) Home Depot, Inc. (The) 402,482 11,623,680 Medical Instruments & Supplies (6.6%) Medtronic, Inc. 1,751,750 78,478,400
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Motion Pictures (1.8%) AOL Time Warner Inc. (a) 1,451,455 $ 21,408,961 Oil & Gas Extraction (1.5%) Anadarko Petroleum Corporation 399,595 17,797,961 Personal Credit Institutions (0.9%) SLM Corporation (b) 104,665 10,753,282 Personal Services (1.4%) Cendant Corp. (a) (b) 1,473,505 16,945,308 Pharmaceuticals (13.4%) Amgen Inc. (a) 1,015,540 47,283,542 Forest Laboratories, Inc. (a) (b) 410,330 40,208,237 Genentech, Inc. (a) 750,555 25,586,420 McKesson HBOC, Inc. 877,445 26,156,635 Novartis AG - ADR (b) 233,240 8,849,126 Teva Pharmaceutical Industries Ltd. - ADR 165,565 12,819,698 Retail Trade (4.1%) Amazon.com, Inc. (a) (b) 1,088,365 21,070,746 Staples, Inc. (a) 1,006,025 15,593,388 Tiffany & Co. (b) 445,890 11,673,400 Security & Commodity Brokers (0.6%) Schwab (Charles) Corporation (The) 735,600 6,752,808 U.S. Government Agencies (1.7%) Fannie Mae 303,790 20,311,399 Water Transportation (1.2%) Royal Caribbean Cruises Ltd. (b) 752,745 13,820,398 -------------- TOTAL COMMON STOCKS (COST: $1,232,123,196) 1,034,724,715 -------------- TOTAL INVESTMENT SECURITIES (COST: $1,232,123,196) $1,034,724,715 ============== SUMMARY: Investments, at market value 86.8% $1,034,724,715 Other assets in excess of liabilities 13.2% 157,003,310 ------------- -------------- Net assets 100.0% $1,191,728,025 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $151,543,335. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 110 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JANUS GROWTH & INCOME
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS (6.5%) U.S. Treasury Note 3.00%, due 01/31/2004 $ 830,000 $ 845,987 5.25%, due 05/15/2004 535,000 565,281 2.25%, due 07/31/2004 550,000 556,017 3.50%, due 11/15/2006 (b) 550,000 570,407 -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST: $2,518,156) 2,537,692 -------------- CORPORATE DEBT SECURITIES (2.4%) Communication (0.6%) Cox Communications, Inc. 7.13%, due 10/01/2012 240,000 247,965 Environmental Services (0.8%) USA Waste Services, Inc. 7.00%, due 10/01/2004 130,000 133,860 Waste Management, Inc. 6.38%, due 12/01/2003 105,000 105,499 7.00%, due 05/15/2005 27,000 28,308 Railroads (0.3%) Canadian National Railway Company 6.63%, due 04/15/2008 115,000 127,639 Variety Stores (0.7%) Wal-Mart Stores, Inc. 4.38%, due 08/01/2003 275,000 280,536 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $900,270) 923,807 -------------- CONVERTIBLE BONDS (0.1%) Business Services (0.1%) Lamar Advertising Company 5.25%, due 09/15/2006 30,000 30,075 Oil & Gas Extraction (0.0%) Devon Energy Corporation Zero Coupon, due 06/27/2020 7,000 3,640 -------------- TOTAL CONVERTIBLE BONDS (COST: $34,446) 33,715 --------------
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (0.4%) Electric Services (0.4%) CenterPoint Energy, Inc. 7,790 $ 165,615 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $310,860) 165,615 -------------- PREFERRED STOCKS (0.9%) Automotive (0.9%) General Motors Corporation 10,120 211,002 Porsche AG 275 131,304 -------------- TOTAL PREFERRED STOCKS (COST: $354,883) 342,306 -------------- COMMON STOCKS (69.3%) Air Transportation (0.2%) Southwest Airlines Co. 4,905 71,613 Amusement & Recreation Services (0.6%) Disney (Walt) Company (The) 14,775 246,743 Automotive (1.7%) Bayerische Motoren Werke AG (BMW) 5,110 182,231 Harley-Davidson, Inc. 3,505 183,312 Honeywell International Inc. 12,290 294,223 Beverages (3.3%) Anheuser-Busch Companies, Inc. 14,670 773,989 PepsiCo, Inc. 11,404 502,916 Business Credit Institutions (0.9%) CIT Group, Inc. (The) (a)(b) 19,225 342,397
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Business Services (2.6%) Accenture Ltd. (a)(b) 9,170 $ 154,790 Clear Channel Communications, Inc. (a) 14,365 532,223 Lamar Advertising Company (a) 2,920 99,105 Valassis Communications, Inc. (a) 8,555 220,719 Chemicals & Allied Products (3.4%) Colgate-Palmolive Company 3,750 206,175 du Pont (E.I.) de Nemours and Company 11,265 464,681 International Flavors & Fragrances Inc. 3,100 104,005 Procter & Gamble Company (The) 6,045 534,680 Commercial Banks (7.7%) Bank of America Corporation 7,640 533,272 Citigroup Inc. 44,180 1,632,450 Morgan Chase & Co. (J.P.) 8,820 183,015 U.S. Bancorp 31,687 668,279 Communication (7.5%) Comcast Corporation - Class A (a)(b) 30,165 694,097 Cox Communications, Inc. - Class A (a) 19,935 546,219 Liberty Media Corporation - Class A (a) 96,955 801,818 Viacom, Inc. - Class B (a) 20,259 903,754 Communications Equipment (0.4%) Nokia Oyj - ADR 10,265 170,604 Computer & Data Processing Services (4.2%) Automatic Data Processing, Inc. 5,010 213,075 Ceridian Corporation (a) 17,010 234,398 Electronic Arts Inc. (a) 1,995 129,914 Microsoft Corporation (a) 19,585 1,047,210 Computer & Office Equipment (0.8%) Apple Computer, Inc. (a) 12,705 204,169 Lexmark International Group, Inc. (a) 1,850 109,927 Electric Services (1.4%) EnCana Corporation 18,768 546,149 Electronic & Other Electric Equipment (1.6%) General Electric Company 25,005 631,376 Electronic Components & Accessories (2.0%) Linear Technology Corporation 7,055 195,000 Maxim Integrated Products 18,695 595,249 Environmental Services (0.2%) Waste Management, Inc. 3,510 80,800 Fabricated Metal Products (0.8%) Stanley Works (The) 9,555 309,295 Food Stores (0.5%) Kroger Co. (The) (a) 13,925 206,647 Gas Production & Distribution (0.3%) Kinder Morgan, Inc. 3,025 110,745 Health Services (0.1%) Tenet Healthcare Corporation (a) 1,390 39,963 Hotels & Other Lodging Places (1.4%) Fairmont Hotels & Resorts Inc. 12,052 295,997 Park Place Entertainment Corporation (a) 17,970 130,283 Starwood Hotels & Resorts Worldwide, Inc. 5,215 121,510 Insurance (5.5%) AFLAC Incorporated 8,650 263,306 American International Group, Inc. 10,651 666,220 Berkshire Hathaway Inc. - Class B (a) 300 738,000 MGIC Investment Corporation 7,475 313,651 Travelers Property Casualty Corp. - Class B (a) 3,286 44,427 UnitedHealth Group Incorporated 1,560 141,882 Insurance Agents, Brokers & Service (2.6%) Marsh & McLennan Companies, Inc. 21,560 1,007,068 Life Insurance (0.9%) John Hancock Financial Services, Inc. 12,270 359,511 Management Services (0.9%) Paychex, Inc. 12,395 357,224
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX JANUS GROWTH & INCOME 111 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Manufacturing Industries (1.1%) Mattel, Inc. 22,375 $ 410,805 Medical Instruments & Supplies (1.7%) Medtronic, Inc. (b) 14,425 646,240 Motion Pictures (0.2%) AOL Time Warner Inc. (a) 5,515 81,346 Oil & Gas Extraction (1.2%) ConocoPhillips 9,323 452,166 Paper & Allied Products (1.1%) 3M Company 3,265 414,459 Petroleum Refining (3.2%) Exxon Mobil Corporation 37,430 1,259,893 Pharmaceuticals (2.7%) Pfizer Inc. 21,635 687,344 Wyeth 10,390 348,065 Printing & Publishing (0.8%) Gannett Co., Inc. 4,250 322,703 Radio & Television Broadcasting (1.2%) USA Networks, Inc. (a)(b) 18,025 455,852 Railroads (0.5%) Canadian National Railway Company 4,265 181,988 Security & Commodity Brokers (1.2%) Goldman Sachs Group, Inc. (The) 5,205 372,678 Schwab (Charles) Corporation (The) 8,690 79,774 Transportation & Public Utilities (0.1%) C.H. Robinson Worldwide, Inc. 1,240 36,667 Transportation Equipment (0.7%) General Dynamics Corporation 3,640 288,033 U.S. Government Agencies (1.7%) Fannie Mae 9,615 642,859 Variety Stores (0.4%) Target Corporation 4,735 142,618 -------------- TOTAL COMMON STOCKS (COST: $29,887,005) 26,963,796 -------------- TOTAL INVESTMENT SECURITIES (COST: $34,005,620) $ 30,966,931 ==============
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ SUMMARY: Investments, at market value 79.6% $ 30,966,931 Other assets in excess of liabilities 20.4% 7,959,593 ------------- -------------- Net assets 100.0% $ 38,926,524 ============= ============== INVESTMENTS BY COUNTRY: - -------------------------------------------------------------------------------------------- PERCENTAGE MARKET OF MARKET VALUE VALUE - -------------------------------------------------------------------------------------------- Germany 1.0% $ 313,535 United States 99.0% 30,653,396 ------------- -------------- Investments, at market value 100.0% $ 30,966,931 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $2,780,411. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 112 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX JENNISON EQUITY OPPORTUNITY
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (94.1%) Aerospace (1.9%) Northrop Grumman Corporation (b) 14,400 $ 1,485,072 Air Transportation (1.0%) Delta Air Lines, Inc. (b) 75,100 757,008 Apparel Products (1.8%) Polo Ralph Lauren Corporation (a) 72,100 1,372,784 Auto Repair, Services & Parking (0.6%) Ryder System, Inc. 18,900 433,755 Business Services (0.6%) DoubleClick Inc. (a) 62,100 434,700 Chemicals & Allied Products (1.8%) IMC Global Inc. 51,500 566,500 Monsanto Company 49,100 811,623 Communication (3.9%) Echostar Communications Corporation - Class A (a) (b) 78,300 1,596,537 Liberty Media Corporation - Class A (a) 163,300 1,350,491 Computer & Data Processing Services (10.6%) Adobe Systems Incorporated 11,400 269,496 Autodesk, Inc. (b) 49,900 583,830 BMC Software, Inc. (a) 85,400 1,361,276 Ceridian Corporation (a) 100,700 1,387,646 Edwards (J.D.) & Company (a) 65,800 780,388 Network Associates, Inc. (a) (b) 54,300 862,827 Parametric Technology Corporation (a) 172,900 399,399 Sybase, Inc. (a) 107,600 1,378,356 Synopsys, Inc. (a) (b) 27,500 1,040,875 Computer & Office Equipment (4.0%) 3Com Corporation (a) 123,000 518,937 Diebold, Incorporated 33,300 1,187,145 Hewlett-Packard Company 82,829 1,308,698 Department Stores (2.0%) Federated Department Stores, Inc. (a) 21,900 672,330 Saks Incorporated (a) 80,200 870,170 Electronic Components & Accessories (1.4%) Agere Systems Inc. - Class B (a) 230,000 213,900 Solectron Corporation (a) 185,800 418,050 Vishay Intertechnology, Inc. (a) 45,700 470,710 Finance (1.3%) iShares NASDAQ Biotechnology Index Fund (a) 18,700 955,570 Health Services (1.3%) Health Management Associates, Inc. - Class A (b) 51,500 984,680 Industrial Machinery & Equipment (1.9%) FMC Technologies, Inc. (a) 76,970 1,423,945 Instruments & Related Products (2.2%) Millipore Corporation (b) 48,300 1,642,683 Insurance (7.6%) Allstate Corporation (The) 42,700 1,698,606 CIGNA Corporation 9,900 357,786 CNA Financial Corporation (a) 13,300 350,189 Everest Re Group, Ltd. 25,000 1,450,500 XL Capital Ltd. - Class A (b) 24,900 1,896,135 Insurance Agents, Brokers & Service (1.9%) Hartford Financial Services Group, Inc. (The) 37,500 1,481,250 Life Insurance (1.8%) Lincoln National Corporation 35,400 1,080,054 Platinum Underwriters Holdings, Ltd. (a) 11,500 288,650 Management Services (0.9%) BearingPoint, Inc. (a) 90,900 709,020 Medical Instruments & Supplies (2.7%) Apogent Technologies, Inc. (a) 79,700 1,448,946 Baxter International Inc. 25,400 635,508 Metal Mining (1.2%) Placer Dome, Inc. (b) 54,500 472,515 Stillwater Mining Company (a) (b) 56,300 449,837 Mining (0.5%) Arch Coal, Inc. 22,800 395,808
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Motion Pictures (2.7%) Fox Entertainment Group, Inc. - Class A (a) (b) 47,000 $ 1,147,270 News Corporation Limited (The) - ADR 45,600 901,512 Oil & Gas Extraction (6.6%) Newfield Exploration Company (a) 27,000 944,730 Schlumberger Limited 28,300 1,135,113 Transocean Inc. 52,100 1,145,158 Unocal Corporation 26,500 732,460 Weatherford International Ltd. (a) (b) 26,300 1,053,052 Paper & Allied Products (3.2%) MeadWestvaco Corporation 40,700 852,665 Temple-Inland Inc. 38,600 1,583,372 Paper & Paper Products (2.7%) Boise Cascade Corporation 87,500 2,081,625 Petroleum Refining (0.6%) United States Steel Corporation 35,600 457,460 Pharmaceuticals (7.4%) Abbott Laboratories 26,100 1,092,807 Cambrex Corporation 41,900 1,166,496 Invitrogen Corporation (a) 12,300 342,186 Pfizer Inc. 57,100 1,814,067 Sepracor Inc. (a) 68,800 598,560 Wyeth 19,800 663,300 Primary Metal Industries (0.5%) Engelhard Corporation 17,600 389,840 Printing & Publishing (5.7%) Knight-Ridder, Inc. 6,300 379,134 New York Times Company (The) - Class A 30,900 1,495,869 Pearson PLC - ADR (b) 146,000 1,562,200 Scholastic Corporation (a) (b) 19,800 874,170 Radio, Television & Computer Stores (1.3%) Circuit City Stores, Inc. - Circuit City Group 96,700 958,297 Retail Trade (1.3%) Toys "R" Us, Inc. (a) 99,300 992,007 Rubber & Misc. Plastic Products (1.0%) Tupperware Corporation 48,700 786,018 Security & Commodity Brokers (3.2%) A.G. Edwards, Inc. 43,200 1,421,280 Merrill Lynch & Co., Inc. 27,800 1,055,010 Telecommunications (1.3%) Cable & Wireless PLC - ADR (b) 146,100 1,015,395 Wholesale Trade Durable Goods (3.7%) Fisher Scientific International Inc. (a) 42,900 1,226,940 Ingram Micro Inc. (a) 66,700 955,811 Tech Data Corporation (a) 19,100 610,245 -------------- TOTAL COMMON STOCKS (COST: $83,294,811) 71,688,234 -------------- TOTAL INVESTMENT SECURITIES (COST: $83,294,811) $ 71,688,234 ============== SUMMARY: Investments, at market value 94.1% $ 71,688,234 Other assets in excess of liabilities 5.9% 4,522,575 ------------- -------------- Net assets 100.0% $ 76,210,809 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $14,317,549. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 113 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX LKCM STRATEGIC TOTAL RETURN
- ------------------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------- CORPORATE DEBT SECURITIES (32.1%) Chemicals & Allied Products (3.5%) Aristech Chemical Corporation 6.88%, due 11/15/2006 $ 600,000 $ 586,136 PolyOne Corporation 9.38%, due 09/15/2003 700,000 709,874 Procter & Gamble Company (The) 5.25%, due 09/15/2003 600,000 617,177 Commercial Banks (3.6%) Mellon Bank, NA 6.50%, due 08/01/2005 500,000 552,590 Morgan Chase & Co. (J.P.) 7.63%, due 09/15/2004 200,000 216,877 Wells Fargo & Company 7.55%, due 06/21/2010 1,000,000 1,175,668 Communication (1.8%) Continental Cablevision, Inc. 8.88%, due 09/15/2005 1,000,000 1,000,000 Electric Services (0.5%) Kentucky Utilities Company 8.55%, due 05/15/2027 250,000 263,193 Electric, Gas & Sanitary Services (1.8%) Interstate Power Company 8.63%, due 09/15/2021 140,000 148,372 Public Service Electric and Gas Company 6.38%, due 05/01/2008 750,000 826,406 Electronic & Other Electric Equipment (0.9%) Thomas & Betts Corporation 6.50%, due 01/15/2006 525,000 468,047 Industrial Machinery & Equipment (0.9%) Black & Decker Corporation (The) 7.50%, due 04/01/2003 500,000 509,734 Life Insurance (0.8%) Hartford Life, Inc. 6.90%, due 06/15/2004 400,000 424,700 Paper & Allied Products (4.1%) Kimberly-Clark Corporation 7.10%, due 08/01/2007 1,400,000 1,626,188 7.00%, due 08/15/2023 500,000 517,825 Personal Credit Institutions (3.8%) Associates Corporation of North America 6.88%, due 11/15/2008 1,000,000 1,124,562 General Electric Capital Corporation 8.13%, due 04/01/2008 600,000 705,816 Wells Fargo Financial, Inc. 7.00%, due 01/15/2003 200,000 201,938 Personal Services (2.7%) Block Financial Corp. 6.75%, due 11/01/2004 600,000 641,535 8.50%, due 04/15/2007 700,000 814,716 Petroleum & Petroleum Products (0.9%) Pennzoil-Quaker State Company 9.40%, due 12/01/2002 500,000 502,388 Radio & Television Broadcasting (2.0%) CBS Corporation (b) 7.15%, due 05/20/2005 1,000,000 1,093,803 Telecommunications (3.6%) ALLTEL Corporation 7.25%, due 04/01/2004 800,000 846,288 GTE Hawaiian Telephone Company Incorporated 7.38%, due 09/01/2006 550,000 589,912 Verizon Hawaii Inc. - Series BB 6.75%, due 02/15/2005 500,000 528,749
- ------------------------------------------------------------------------------------------- PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------- Variety Stores (1.2%) Wal-Mart Stores, Inc. 6.55%, due 08/10/2004 $ 600,000 $ 646,721 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $16,178,685) 17,339,215 -------------- CONVERTIBLE BONDS (1.0%) Apparel & Accessory Stores (1.0%) Charming Shoppes, Inc. - 144A (c) 4.75%, due 06/01/2012 660,000 540,375 -------------- TOTAL CONVERTIBLE BONDS (COST: $667,171) 540,375 -------------- - ------------------------------------------------------------------------------------------- NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS (4.2%) Instruments & Related Products (1.4%) Raytheon Company 14,000 $ 737,660 Life Insurance (1.7%) Prudential Financial, Inc. - Units 19,000 976,790 Printing & Publishing (1.1%) Tribune Company 8,100 577,125 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $2,667,486) 2,291,575 -------------- COMMON STOCKS (62.2%) Beverages (1.6%) Coca-Cola Company (The) 19,000 883,120 Business Services (2.7%) Clear Channel Communications, Inc. (a) 19,000 703,950 First Data Corporation 21,600 754,704 Chemicals & Allied Products (1.8%) Colgate-Palmolive Company 17,500 962,150 Commercial Banks (6.3%) Citigroup Inc. 22,800 842,460 Cullen/Frost Bankers, Inc. 26,000 900,380 Mellon Financial Corporation 29,800 843,042 Wells Fargo & Company 17,600 888,272 Communication (2.0%) Viacom, Inc. - Class B (a) 23,844 1,063,681 Communications Equipment (1.2%) Harris Corporation 15,000 395,700 Motorola, Inc. 29,700 272,349 Computer & Data Processing Services (2.8%) Microsoft Corporation (a) 18,200 973,154 SunGard Data Systems Inc. (a) 24,000 532,080 Computer & Office Equipment (4.1%) Cisco Systems, Inc. (a) 29,700 332,046 Dell Computer Corporation (a) 23,700 678,057 Diebold, Incorporated 14,800 527,620 International Business Machines Corporation 8,500 670,990 Electronic & Other Electric Equipment (2.2%) General Electric Company 47,000 1,186,750 Electronic Components & Accessories (1.7%) Intel Corporation 28,300 489,590 Texas Instruments Incorporated 26,500 420,290 Health Services (1.4%) Tenet Healthcare Corporation (a) 12,000 345,000 Triad Hospitals, Inc. (a) 12,000 438,000 Holding & Other Investment Offices (0.8%) Crescent Real Estate Equities Company 30,000 442,500 Insurance (1.5%) American International Group, Inc. 13,275 830,351 Lumber & Other Building Materials (1.3%) Home Depot, Inc. (The) 23,800 687,344
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX LKCM STRATEGIC TOTAL RETURN 114 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------- NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------- Medical Instruments & Supplies (1.8%) Medtronic, Inc. (b) 22,000 $ 985,600 Oil & Gas Extraction (4.8%) Anadarko Petroleum Corporation 15,500 690,370 EOG Resources, Inc. (b) 18,300 677,649 Schlumberger Limited 16,400 657,804 Unocal Corporation 20,000 552,800 Paper & Allied Products (1.0%) Kimberly-Clark Corporation 10,000 515,000 Paper & Paper Products (1.9%) Boise Cascade Corporation 42,200 1,003,938 Personal Services (0.8%) Block, (H & R) Inc. 10,200 452,676 Petroleum Refining (2.1%) Exxon Mobil Corporation 33,400 1,124,244 Pharmaceuticals (5.8%) Alcon, Inc. (a) 25,100 1,029,602 Pfizer Inc. 29,700 943,569 Teva Pharmaceutical Industries Ltd. - ADR 14,800 1,145,964 Printing & Publishing (0.7%) Harte-Hanks Inc. 20,500 391,140 Rubber & Misc. Plastic Products (1.4%) Newell Financial Trust I (b) 24,000 778,080 Savings Institutions (1.3%) Charter One Financial, Inc. 23,500 711,580 Telecommunications (3.8%) ALLTEL Corporation 21,600 1,073,736 Verizon Communications, Inc. 25,400 959,104 Tobacco Products (2.1%) Loews Corporation - Carolina Group 27,000 540,000 Philip Morris Companies Inc. 14,300 582,725 Transportation Equipment (0.8%) General Dynamics Corporation 5,500 435,215
- ------------------------------------------------------------------------------------------- NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------- U.S. Government Agencies (1.0%) Fannie Mae 8,000 $ 534,880 Variety Stores (1.5%) Wal-Mart Stores, Inc. 14,900 797,895 -------------- TOTAL COMMON STOCKS (COST: $36,472,395) 33,647,151 -------------- TOTAL INVESTMENT SECURITIES (COST: $55,985,737) $ 53,818,316 ============== SUMMARY: Investments, at market value 99.5% $ 53,818,316 Other assets in excess of liabilities 0.5% 268,216 -------------- -------------- Net assets 100.0% $ 54,086,532 ============== ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $2,696,049. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (c) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. DEFINITIONS: ADR American Depositary Receipt 115 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX MODERATE ASSET ALLOCATION
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ MUTUAL FUNDS (96.4%) (A) Aggressive (26.8%) IDEX Great Companies - America(SM) (b) 466,961 $ 3,572,251 IDEX Isabelle Small Cap Value (b) 741,324 6,738,633 IDEX T. Rowe Price Health Sciences (b) 108,836 901,165 IDEX T. Rowe Price Tax-Efficient Growth 552,306 4,468,153 IDEX Transamerica Equity (b) 1,331,377 7,349,202 IDEX Transamerica Growth Opportunities (b) 407,189 1,958,580 Conservative (18.5%) IDEX Janus Growth & Income (b) 607,810 4,412,699 IDEX Jennison Equity Opportunity (b) 173,029 1,190,439 IDEX Salomon Investors Value 1,134,302 11,581,220 Fixed-Income (37.1%) IDEX Janus Flexible Income 943,147 9,374,878 IDEX PIMCO Total Return 1,294,630 13,360,581 IDEX Transamerica Conservative High-Yield Bond 917,516 7,266,730 IDEX Transamerica Convertible Securities 488,531 4,582,424 International (8.4%) IDEX American Century International (b) 487,280 3,410,963 IDEX Gabelli Global Growth (b) 455,884 2,580,301 IDEX Great Companies - Global(2) (b) 304,918 1,786,820 Money Market (5.6%) IDEX Transamerica Money Market 5,182,059 5,182,059 -------------- TOTAL MUTUAL FUNDS (COST: $93,856,670) 89,717,098 -------------- TOTAL INVESTMENT SECURITIES (COST: $93,856,670) $ 89,717,098 ============== SUMMARY: Investments, at market value 96.4% $ 89,717,098 Other assets in excess of liabilities 3.6% 3,338,094 ------------- -------------- Net assets 100.0% $ 93,055,192 ============= ==============
NOTES TO SCHEDULE OF INVESTMENTS: (a) The fund invests its assets in Class A shares of underlying IDEX Mutual Funds. These underlying funds are considered affiliates of the fund. (b) No dividends were paid during the preceding twelve months. 116 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX MODERATELY AGGRESSIVE ASSET ALLOCATION
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ MUTUAL FUNDS (96.6%) (A) Aggressive (37.6%) IDEX Great Companies - America(SM) (b) 433,999 $ 3,320,093 IDEX Isabelle Small Cap Value (b) 903,663 8,214,295 IDEX T. Rowe Price Health Sciences (b) 181,519 1,502,980 IDEX T. Rowe Price Tax-Efficient Growth 726,477 5,877,196 IDEX Transamerica Equity (b) 1,722,459 9,507,975 IDEX Transamerica Growth Opportunities (b) 668,786 3,216,862 Conservative (24.9%) IDEX Janus Growth & Income (b) 610,001 4,428,611 IDEX Jennison Equity Opportunity (b) 186,452 1,282,792 IDEX Salomon Investors Value 1,499,133 15,306,146 Fixed-Income (21.7%) IDEX Janus Flexible Income 641,916 6,380,646 IDEX PIMCO Total Return 577,780 5,962,689 IDEX Transamerica Conservative High-Yield Bond 747,352 5,919,029 International (12.4%) IDEX American Century International (b) 664,682 4,652,778 IDEX Gabelli Global Growth (b) 584,217 3,306,671 IDEX Great Companies - Global(2) (b) 423,037 2,478,996 -------------- TOTAL MUTUAL FUNDS (COST: $86,997,391) 81,357,759 -------------- TOTAL INVESTMENT SECURITIES (COST: $86,997,391) $ 81,357,759 ============== SUMMARY: Investments, at market value 96.6% $ 81,357,759 Other assets in excess of liabilities 3.4% 2,894,621 ------------- -------------- Net assets 100.0% $ 84,252,380 ============= ==============
NOTES TO SCHEDULE OF INVESTMENTS: (a) The fund invests its assets in Class A shares of underlying IDEX Mutual Funds. These underlying funds are considered affiliates of the fund. (b) No dividends were paid during the preceding twelve months. 117 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX MUNDER NET50
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (96.4%) Business Services (30.9%) Digital Insight Corporation (a) 1,900 $ 19,798 DoubleClick Inc. (a) 9,050 63,349 eBay Inc. (a) 630 39,854 Getty Images, Inc. (a) 400 11,464 Hotels.com - Class A (a) 800 49,880 Overture Services, Inc. (a) 2,200 60,566 Register.com, Inc. (a) 200 756 TMP Worldwide Inc. (a) 1,650 25,542 WebEx Communications, Inc. (a) 400 6,272 Websense, Inc. (a) 1,000 20,190 Communication (0.9%) NDS Group PLC - ADR (a) 1,200 9,060 Communications Equipment (2.4%) Nokia Oyj - ADR 800 13,296 QUALCOMM Incorporated (a) 300 10,356 Computer & Data Processing Services (34.3%) Check Point Software Technologies, Ltd. (a) 1,625 22,409 InfoSpace, Inc. (a) 1,550 12,571 Internet Security Systems, Inc. (a) 2,200 40,612 Intuit Inc. (a) 200 10,384 Micromuse Inc. (a) 1,500 3,450 Microsoft Corporation (a) 900 48,123 Multex.com, Inc. (a) 1,900 6,555 Oracle Corporation (a) 2,400 24,600 Riverdeep Group PLC - ADR (a) 1,700 10,404 SportsLine.com, Inc. (a) 3,900 5,304 TIBCO Software Inc. (a) 1,600 8,000 Ticketmaster - Class B (a) 1,200 28,320 TriZetto Group, Inc. (The) (a) 1,000 6,089 VeriSign, Inc. (a) 3,050 24,553 VERITAS Software Corporation (a) 900 13,725 Yahoo! Inc. (a) 4,400 65,647 Computer & Office Equipment (9.9%) Brocade Communications Systems, Inc. (a) 300 2,061 Cisco Systems, Inc. (a) 4,400 49,192 Dell Computer Corporation (a) 1,000 28,610 EMC Corporation (a) 3,150 16,097 Electronic Components & Accessories (0.1%) Applied Micro Circuits Corporation (a) 250 980 Finisar Corporation (a) 200 150
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Management Services (0.2%) DiamondCluster International, Inc. - Class A (a) 800 $ 2,128 Motion Pictures (4.3%) AOL Time Warner Inc. (a) 1,600 23,600 CNET Networks, Inc. (a) 9,200 18,216 Radio & Television Broadcasting (0.8%) USA Networks, Inc. (a) 300 7,587 Retail Trade (2.0%) 1-800-FLOWERS.COM, Inc. (a) 2,000 13,800 Amazon.com, Inc. (a) 300 5,808 Savings Institutions (1.0%) NetBank, Inc. (a) 1,000 9,880 Security & Commodity Brokers (3.4%) E*TRADE Group, Inc. (a) 7,200 32,400 Telecommunications (0.4%) SK Telecom Co., Ltd. - ADR 200 4,014 Transportation & Public Utilities (5.8%) Expedia, Inc. - Class A (a) 800 54,128 Expedia, Inc. - warrants 57 2,016 -------------- TOTAL COMMON STOCKS (COST: $1,605,669) 931,796 -------------- TOTAL INVESTMENT SECURITIES (COST: $1,605,669) $ 931,796 ============== SUMMARY: Investments, at market value 96.4% $ 931,796 Other assets in excess of liabilities 3.6% 34,482 ------------- -------------- Net assets 100.0% $ 966,278 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. DEFINITIONS: ADR American Depositary Receipt 118 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX PBHG MID CAP GROWTH
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (89.6%) Apparel & Accessory Stores (1.2%) Chico's FAS, Inc. (a) (b) 8,300 $ 160,190 Ross Stores, Inc. 9,100 380,835 Automotive (1.0%) Gentex Corporation (a) (b) 16,700 492,316 Automotive Dealers & Service Stations (0.4%) O'Reilly Automotive, Inc. (a) 6,300 171,801 Business Services (3.8%) ChoicePoint Inc. (a) 24,882 942,033 Overture Services, Inc. (a) (b) 11,500 316,595 Websense, Inc. (a) 25,000 504,750 Commercial Banks (3.0%) Associated Banc-Corp. 9,050 303,718 Commerce Bancorp, Inc. (b) 8,900 408,599 North Fork Bancorporation, Inc. 8,700 334,602 TCF Financial Corporation 8,900 377,716 Communications Equipment (1.6%) L-3 Communications Holdings, Inc. (a) (b) 15,600 733,200 Computer & Data Processing Services (12.2%) Adobe Systems Incorporated 15,200 359,328 Affiliated Computer Services, Inc. - Class A (a) 14,300 658,515 CACI International Inc. - Class A (a) 25,600 1,047,296 Documentum, Inc. (a) 18,600 271,746 Edwards (J.D.) & Company (a) 15,100 179,086 Electronic Arts Inc. (a) 6,400 416,768 Manhattan Associates, Inc. (a) (b) 13,400 301,232 Mercury Interactive Corporation (a) 17,000 448,290 Quest Software, Inc. (a) 19,300 210,756 Symantec Corporation (a) 27,200 1,088,000 Take-Two Interactive Software, Inc. (a) (b) 12,000 309,360 Veridian Corporation (a) 18,100 433,676 Computer & Office Equipment (1.2%) NetScreen Technologies, Inc. (a) 22,900 301,593 Western Digital Corporation (a) 42,100 260,599 Construction (2.0%) Jacobs Engineering Group Inc. (a) 30,400 920,816 Educational Services (6.5%) Apollo Group, Inc. - Class A (a) 25,400 1,054,100 Career Education Corporation (a) 14,682 588,895 Corinthian Colleges, Inc. (a) 29,501 1,118,087 Education Management Corporation (a) 8,400 308,280 Electronic Components & Accessories (7.3%) Cree, Inc. (a) (b) 20,000 345,000 Integrated Circuit Systems, Inc. (a) 28,800 588,672 Intersil Corporation - Class A (a) 25,200 428,148 Microchip Technology Incorporated 43,950 1,072,380 QLogic Corporation (a) (b) 14,000 487,340 RF Micro Devices, Inc. (a) (b) 22,300 189,305 Silicon Laboratories Inc. (a) (b) 14,200 302,318 Environmental Services (3.8%) Stericycle, Inc. (a) (b) 20,600 685,980 Waste Connections, Inc. (a) (b) 29,500 1,079,110 Fabricated Metal Products (1.9%) Alliant Techsystems Inc. (a) 14,950 899,243 Food & Kindred Products (0.4%) American Italian Pasta Company - Class A (a) (b) 5,800 199,810 Food Stores (1.7%) Whole Foods Market, Inc. (a) (b) 17,400 811,780 Furniture & Home Furnishings Stores (1.0%) Williams-Sonoma, Inc. (a) 20,400 485,520 Health Services (10.1%) Accredo Health, Incorporated (a) (b) 16,300 754,364 Caremark Rx, Inc. (a) 36,800 651,360 Community Health Systems, Inc. (a) 33,400 784,900 LifePoint Hospitals, Inc. (a) 15,300 479,655 Odyssey HealthCare, Inc. (a) (b) 7,100 248,358 Province Healthcare Company (a) (b) 16,700 217,935
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Health Services (continued) Renal Care Group, Inc. (a) 20,100 $ 636,165 Triad Hospitals, Inc. (a) 19,600 715,400 United Surgical Partners International, Inc. (a) (b) 15,700 311,802 Industrial Machinery & Equipment (1.3%) FMC Technologies, Inc. (a) 33,300 616,050 Instruments & Related Products (1.5%) The Cooper Companies, Inc. 6,600 349,800 Waters Corporation (a) 14,400 362,592 Insurance (3.6%) Coventry Health Care, Inc. (a) 18,600 622,356 First Health Group Corp. (a) 9,100 236,418 Mid Atlantic Medical Services, Inc. (a) 23,100 840,840 Insurance Agents, Brokers & Service (2.4%) Express Scripts, Inc. - Class A (a) (b) 20,500 1,114,175 Leather & Leather Products (0.8%) Coach, Inc. (a) 12,100 359,975 Management Services (2.1%) Corporate Executive Board Company (The) (a) 29,000 962,510 Medical Instruments & Supplies (6.0%) CTI Molecular Imaging, Inc. (a) (b) 9,000 203,220 DENTSPLY International Inc. 11,500 424,580 STERIS Corporation (a) 24,000 636,720 Varian Medical Systems, Inc. (a) 24,000 1,157,279 Zimmer Holdings, Inc. (a) 9,800 403,956 Pharmaceuticals (3.7%) Charles River Laboratories, Inc. (a) (b) 9,900 363,825 Gilead Sciences, Inc. (a) 8,400 291,816 IDEC Pharmaceuticals Corporation (a) (b) 7,800 358,956 Taro Pharmaceutical Industries Ltd. (a) 5,500 191,125 Techne Corporation (a) (b) 15,900 524,700 Restaurants (2.1%) Brinker International, Inc. (a) 11,800 335,002 Cheesecake Factory Incorporated (The) (a) (b) 8,400 284,760 Sonic Corp. (a) 16,700 388,609 Retail Trade (1.6%) CDW Computer Centers, Inc. (a) (b) 9,700 514,294 Michaels Stores, Inc. (a) 5,100 229,296 Savings Institutions (1.7%) Independence Community Bank Corp. 15,000 385,050 New York Community Bancorp, Inc. (b) 13,500 392,310 Variety Stores (0.7%) 99 Cents Only Stores (a) (b) 12,100 327,305 Wholesale Trade Durable Goods (1.3%) Patterson Dental Company (a) (b) 11,700 602,667 Wholesale Trade Nondurable Goods (1.7%) Performance Food Group Company (a) (b) 20,900 777,271 -------------- TOTAL COMMON STOCKS (COST: $40,071,155) 42,034,780 -------------- TOTAL INVESTMENT SECURITIES (COST: $40,071,155) $ 42,034,780 ============== SUMMARY: Investments, at market value 89.6% $ 42,034,780 Other assets in excess of liabilities 10.4% 4,888,289 ------------- -------------- Net assets 100.0% $ 46,923,069 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $12,654,873. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. 119 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX PBHG TECHNOLOGY & COMMUNICATIONS
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE BONDS (0.2%) Computer & Data Processing Services (0.2%) MicroStrategy Incorporated 7.50%, due 06/24/2007 $ 139,300 $ 33,780 -------------- TOTAL CONVERTIBLE BONDS (COST: $0) 33,780 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (89.7%) Aerospace (1.9%) Lockheed Martin Corporation 3,100 $ 179,490 Northrop Grumman Corporation 1,400 144,382 Business Services (2.4%) eBay Inc. (a) 3,900 246,714 Overture Services, Inc. (a) 3,000 82,590 Websense, Inc. (a) 3,800 76,722 Communication (1.8%) Comcast Corporation - Class A (a) 13,500 310,635 Communications Equipment (6.1%) DSP Group, Inc. (a) 12,900 184,483 L-3 Communications Holdings, Inc. (a) 1,600 75,200 Motorola, Inc. 20,000 183,400 Nokia Oyj - ADR 15,600 259,272 QUALCOMM Incorporated (a) 9,400 324,488 Computer & Data Processing Services (23.1%) Activision, Inc. (a) 1,000 20,500 Adobe Systems Incorporated 6,200 146,568 CACI International Inc. - Class A (a) 2,000 81,820 Documentum, Inc. (a) 19,600 286,356 DST Systems, Inc. (a) 8,100 249,075 Electronic Arts Inc. (a) 4,300 280,016 Intuit Inc. (a) 2,200 114,224 Mercury Interactive Corporation (a) 5,300 139,761 Microsoft Corporation (a) 16,800 898,296 Oracle Corporation (a) 27,500 281,875 Quest Software, Inc. (a) 16,600 181,272 SRA International, Inc. - Class A (a) 2,900 70,470 SunGard Data Systems Inc. (a) 16,300 361,371 Symantec Corporation (a) 10,200 408,000 Take-Two Interactive Software, Inc. (a) 4,900 126,322 Veridian Corporation (a) 3,200 76,672 VERITAS Software Corporation (a) 10,800 164,700 Computer & Office Equipment (13.4%) Adaptec, Inc. (a) 6,800 40,528 Apple Computer, Inc. (a) 6,600 106,062 Cisco Systems, Inc. (a) 26,800 299,624 Dell Computer Corporation (a) 22,900 655,169 EMC Corporation (a) 49,300 251,923 Hewlett-Packard Company 18,400 290,720 NetScreen Technologies, Inc. (a) 20,300 267,351 Pitney Bowes Inc. 6,700 224,785 Western Digital Corporation (a) 18,900 116,991 Electrical Goods (0.9%) Avnet, Inc. 15,500 144,150 Electronic Components & Accessories (25.3%) Analog Devices, Inc. (a) 7,500 201,000 Broadcom Corporation - Class A (a) 8,000 95,840 Cree, Inc. (a) 4,600 79,350 Fairchild Semiconductor International, Inc. - Class A (a) 18,800 223,720 Integrated Circuit Systems, Inc. (a) 11,700 239,148
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Electronic Components & Accessories (continued) Intel Corporation 34,900 $ 603,770 International Rectifier Corporation (a) 12,200 210,694 Intersil Corporation - Class A (a) 14,400 244,656 Linear Technology Corporation 6,700 185,188 Maxim Integrated Products 2,200 70,048 Microchip Technology Incorporated 14,300 348,920 Micron Technology, Inc. (a) 19,400 310,400 National Semiconductor Corporation (a) 10,400 138,112 QLogic Corporation (a) 6,000 208,860 RF Micro Devices, Inc. (a) 20,100 170,629 Semtech Corporation (a) 2,700 38,151 Silicon Laboratories Inc. (a) 20,100 427,929 TriQuint Semiconductor, Inc. (a) 41,500 209,575 Vishay Intertechnology, Inc. (a) 7,300 75,190 Xilinx, Inc. (a) 8,800 167,112 Fabricated Metal Products (0.4%) Alliant Techsystems Inc. (a) 1,200 72,180 Finance (1.4%) Nasdaq - 100 Shares (a) 7,900 194,103 Technology Select Sector SPDR Index Fund (a) 3,000 44,280 Industrial Machinery & Equipment (3.4%) Applied Materials, Inc. (a) 14,700 220,941 Brooks - PRI Automation, Inc. (a) 10,300 157,487 Lam Research Corporation (a) 14,900 187,591 Instruments & Related Products (2.2%) Agilent Technologies, Inc. (a) 19,400 266,750 Applera Corporation - Applied Biosystems Group 5,400 109,242 Medical Instruments & Supplies (0.2%) Boston Scientific Corporation (a) 1,100 41,393 Motion Pictures (1.3%) AOL Time Warner Inc. (a) 14,900 219,775 Pharmaceuticals (2.9%) Amgen Inc. (a) 3,100 144,336 Gilead Sciences, Inc. (a) 2,500 86,850 IDEC Pharmaceuticals Corporation (a) 5,600 257,712 Radio, Television & Computer Stores (1.2%) Electronics Boutique Holdings Corp. (a) 8,200 206,648 Telecommunications (1.8%) AT&T Wireless Services, Inc. (a) 34,600 237,702 Nextel Communications, Inc. - Class A (a) 6,000 67,680 -------------- TOTAL COMMON STOCKS (COST: $16,040,461) 15,114,939 -------------- TOTAL INVESTMENT SECURITIES (COST: $16,040,461) $ 15,148,719 ============== SUMMARY: Investments, at market value 89.9% $ 15,148,719 Other assets in excess of liabilities 10.1% 1,709,311 ------------- -------------- Net assets 100.0% $ 16,858,030 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. DEFINITIONS: ADR American Depositary Receipt 120 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX PIMCO TOTAL RETURN
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS (1.3%) U.S. Treasury Inflation Index 3.50%, due 01/15/2011 $ 1,038,130 $ 1,128,156 -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST: $1,139,187) 1,128,156 -------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (40.2%) Fannie Mae - Series 1999-13 6.00%, due 09/25/2011 46,000 47,160 Fannie Mae - Conventional Pools 5.50%, due 12/01/2016 482,785 498,523 5.50%, due 02/01/2017 478,421 494,006 5.50%, due 03/01/2017 98,533 101,743 6.00%, due 04/01/2017 217,023 226,286 5.50%, due 05/01/2017 480,621 496,278 5.12%, due 01/01/2028 (f) 288,505 299,502 Fannie Mae - December TBA 5.50%, due 12/01/2017 1,000,000 1,027,812 Fannie Mae - November TBA 5.50%, due 11/01/2017 2,900,000 2,989,720 6.00%, due 11/01/2017 3,000,000 3,123,749 6.00%, due 11/01/2032 6,000,000 6,164,999 Federal Home Loan Bank 5.60%, due 01/21/2003 100,000 100,901 Freddie Mac - November TBA 6.00%, due 11/01/2032 150,000 154,313 Freddie Mac - Series 2434 5.63%, due 07/15/2028 756,303 774,846 Freddie Mac - Series 2429 6.00%, due 12/15/2028 17,141 17,536 Freddie Mac - Series 2142 6.50%, due 04/15/2029 25,094 26,738 Ginnie Mae - November TBA 6.50%, due 11/01/2032 2,000,000 2,082,500 6.00%, due 11/01/2032 10,000,000 10,334,379 Ginnie Mae - Various Pools 6.50%, due 06/15/2031 2,000,199 2,084,970 6.50%, due 12/15/2031 1,004,120 1,046,676 6.50%, due 02/15/2032 497,425 518,499 6.50%, due 04/15/2032 2,000,199 2,084,940 6.50%, due 07/15/2032 498,654 520,167 Ginnie Mae - Series 2002-40 6.50%, due 06/20/2032 40,874 42,852 -------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST: $35,033,948) 35,259,095 -------------- FOREIGN GOVERNMENT OBLIGATIONS (3.2%) Federative Republic of Brazil 2.56%, due 04/15/2006 (f) 112,000 87,494 11.50%, due 03/12/2008 70,000 45,500 11.00%, due 01/11/2012 100,000 58,000 8.00%, due 04/15/2014 455,622 264,671 8.88%, due 04/15/2024 150,000 68,250 Malaysia 7.50%, due 07/15/2011 10,000 11,364 Republic of Bulgaria 2.69%, due 07/28/2011 (f) 97,000 88,270 2.69%, due 07/28/2024 (f) 10,000 9,322 Republic of Croatia (f) 2.69%, due 07/31/2010 145,455 144,727 Republic of Panama 8.25%, due 04/22/2008 40,000 40,400 9.63%, due 02/08/2011 230,000 240,350 2.75%, due 07/17/2016 (f) 171,815 129,205 Republic of Peru 9.13%, due 02/21/2012 230,000 200,560 4.00%, due 03/07/2017 (f) 150,000 96,375 Republic of Peru - 144A (b) 9.13%, due 02/21/2012 90,000 79,425 Republic of South Africa 7.38%, due 04/25/2012 25,000 26,313
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ State of Qatar 9.75%, due 06/15/2030 $ 10,000 $ 12,298 United Mexican States 9.88%, due 02/01/2010 150,000 174,150 8.38%, due 01/14/2011 550,000 594,035 7.50%, due 01/14/2012 420,000 434,490 8.30%, due 08/15/2031 10,000 9,925 -------------- TOTAL FOREIGN GOVERNMENT OBLIGATIONS (COST: $2,786,798) 2,815,124 -------------- MORTGAGE-BACKED SECURITIES (12.0%) Amortizing Residential Collateral Trust 2.12%, due 06/25/2004 (f) 287,915 286,946 2.08%, due 06/25/2032 (e) 187,369 187,313 Bank of America Mortgage Securities, Inc. 6.20%, due 07/25/2031 (f) 74,088 75,773 5.82%, due 10/20/2032 (e) 943,788 995,066 Bear Stearns Asset Backed Securities, Inc. 2.16%, due 10/25/2032 (f) 352,705 351,995 Chase Mortgage Finance Corporation 7.25%, due 02/25/2031 159,992 160,798 CS First Boston Mortgage Securities Corp. (e) 2.17%, due 03/25/2032 286,412 283,884 2.48%, due 03/28/2032 27,773 27,528 2.36%, due 09/27/2032 696,925 696,925 Countrywide Home Loan Trust - Series 2002-1 (f) 5.96%, due 03/19/2032 509,487 525,683 Countrywide Home Loans, Inc. (e) 5.01%, due 09/19/2032 889,136 903,532 First Horizon Asset Securities Inc. 7.00%, due 09/25/2030 35,350 35,968 Household Mortgage Loan Trust (f) 2.13%, due 05/20/2032 269,624 269,574 Merrill Lynch Mortgage Investors, Inc. 2.20%, due 09/25/2032 13,560 13,553 PNC Mortgage Securities Corp 6.30%, due 07/25/2029 1,000,000 1,024,350 Sequoia Mortgage Funding Corporation - Series 10 (e) (f) 2.21%, due 10/20/2027 499,832 499,832 Structured Asset Mortgage Investments Inc. (e) (f) 2.15%, due 09/19/2032 298,899 298,899 Structured Asset Securities Corporation 2.13%, due 10/25/2027 (f) 85,282 85,380 6.35%, due 09/25/2031 1,714,369 1,747,354 2.12%, due 01/25/2033 (f) 88,989 88,642 Vanderbilt Acquisition Loan Trust 3.28%, due 01/07/2013 260,505 262,807 Washington Mutual Mortgage Securities Corporation 6.01%, due 01/25/2031 12,375 12,622 6.40%, due 10/19/2039 (f) 787,348 804,236 3.91%, due 12/25/2040 (f) 481,564 486,016 Wells Fargo Mortgage Backed Securities Trust - Series 2002-E (e) 5.22%, due 09/25/2032 389,253 395,358 -------------- TOTAL MORTGAGE-BACKED SECURITIES (COST: $10,473,294) 10,520,034 -------------- CORPORATE DEBT SECURITIES (44.2%) Air Transportation (1.9%) American Airlines, Inc. (a) 7.86%, due 10/01/2011 550,000 500,004 Continental Airlines, Inc. 7.06%, due 09/15/2009 400,000 327,225 7.92%, due 05/01/2010 150,000 113,598 Delta Air Lines, Inc. 7.57%, due 11/18/2010 100,000 91,036 7.11%, due 09/18/2011 410,000 372,808 UAL Corporation 6.20%, due 09/01/2008 300,000 214,220 6.60%, due 09/01/2013 130,000 90,155
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PIMCO TOTAL RETURN 121 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Amusement & Recreation Services (2.9%) Disney (Walt) Company (The) 3.90%, due 09/15/2003 $ 700,000 $ 701,563 5.13%, due 12/15/2003 800,000 818,261 MGM MIRAGE 6.95%, due 02/01/2005 500,000 509,984 6.63%, due 02/01/2005 20,000 20,150 8.50%, due 09/15/2010 470,000 512,093 Station Casinos, Inc. 8.38%, due 02/15/2008 10,000 10,550 Automotive (1.1%) DaimlerChrysler North America Holding Corporation 2.60%, due 12/16/2002 (f) 150,000 150,039 7.13%, due 04/10/2003 150,000 152,249 7.75%, due 05/27/2003 600,000 615,252 2.05%, due 08/16/2004 (f) 50,000 49,286 Business Credit Institutions (2.9%) CIT Group, Inc. (The) 5.92%, due 01/15/2003 100,000 100,404 7.75%, due 04/02/2012 100,000 102,225 2.15%, due 02/28/2003 (f) 200,000 199,100 Ford Motor Credit Company 7.25%, due 01/15/2003 200,000 200,380 2.01%, due 03/17/2003 (f) 100,000 98,558 2.08%, due 06/02/2003 (f) 700,000 684,467 7.50%, due 06/15/2003 500,000 504,268 2.08%, due 04/26/2004 (f) 200,000 184,177 2.26%, due 07/18/2005 (f) 100,000 86,005 National Rural Utilities Cooperative Finance Corporation (f) 2.83%, due 04/26/2004 100,000 100,325 RACERS Series 1997-R-8-3 - 144A (b) (e) (f) 2.05%, due 08/15/2007 300,000 297,480 Business Services (1.0%) Clear Channel Communications, Inc. 7.25%, due 09/15/2003 750,000 764,486 7.25%, due 10/15/2027 150,000 145,705 Commercial Banks (1.3%) HSBC Capital Funding LP - 144A (b) (f) 10.18%, due 12/31/2049 150,000 200,817 KBC Bank Fund Trust III - 144A (b) 9.86%, due 11/29/2049 15,000 17,840 Morgan Chase & Co. (J.P.) (a) 6.63%, due 03/15/2012 800,000 857,318 Popular, Inc. (f) 3.43%, due 10/15/2003 100,000 100,898 Communication (3.5%) Comcast Cable Communications, Inc. 6.75%, due 01/30/2011 160,000 152,681 Continental Cablevision, Inc. 8.30%, due 05/15/2006 100,000 98,203 Cox Communications, Inc. 6.50%, due 11/15/2002 10,000 10,001 6.15%, due 08/01/2003 (f) 850,000 843,728 CSC Holdings, Inc. 7.88%, due 12/15/2007 10,000 8,275 7.63%, due 04/01/2011 150,000 122,625 Rogers Cablesystems Ltd. 10.00%, due 03/15/2005 10,000 9,900 TCI Communications, Inc. 6.38%, due 05/01/2003 1,600,000 1,593,487 8.65%, due 09/15/2004 100,000 101,065 Tele-Communications, Inc. 8.25%, due 01/15/2003 115,000 115,209 Electric Services (5.6%) Dominion Resources, Inc. 6.00%, due 01/31/2003 600,000 602,964 Entergy Gulf States, Inc. - 144A (b) (f) 3.11%, due 09/01/2004 500,000 498,287
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Electric Services (continued) FirstEnergy Corp. 7.38%, due 06/01/2003 $ 600,000 $ 608,144 IPALCO Enterprises, Inc. 7.38%, due 11/14/2008 10,000 8,400 Oncor Electric Delivery Company - 144A (b) 6.38%, due 05/01/2012 800,000 813,937 Progress Energy, Inc. 6.55%, due 03/01/2004 600,000 612,672 PSEG Power LLC - 144A (b) 6.95%, due 06/01/2012 300,000 261,000 Toledo Edison Company (The) 7.82%, due 03/31/2003 1,000,000 1,008,706 TXU Electric Company 6.75%, due 03/01/2003 200,000 200,650 TXU Electric Company - 144A (b) (f) 2.43%, due 06/15/2003 200,000 194,028 Electric, Gas & Sanitary Services (1.5%) Midwest Generation, LLC 8.30%, due 07/02/2009 30,000 17,318 Niagara Mohawk Power Corporation 6.88%, due 04/01/2003 500,000 508,442 7.38%, due 07/01/2003 15,122 15,585 7.38%, due 08/01/2003 750,000 775,772 Environmental Services (1.4%) USA Waste Services, Inc. 7.00%, due 10/01/2004 300,000 308,907 Waste Management, Inc. 6.38%, due 12/01/2003 100,000 100,476 7.10%, due 08/01/2026 800,000 807,541 Food Stores (0.8%) Safeway Inc. 3.63%, due 11/05/2003 700,000 706,290 Gas Production & Distribution (1.9%) El Paso Corporation (a) 7.75%, due 01/15/2032 40,000 25,200 Kinder Morgan, Inc. 6.45%, due 03/01/2003 630,000 634,490 Limestone Electron Trust - 144A (b) 8.63%, due 03/15/2003 500,000 465,566 Sonat Inc. 7.63%, due 07/15/2011 370,000 244,200 Southern Natural Gas Company 8.00%, due 03/01/2032 100,000 89,000 Williams Companies, Inc. (The) 6.50%, due 11/15/2002 200,000 195,000 Health Services (1.4%) HCA Inc. 6.87%, due 09/15/2003 600,000 614,710 HEALTHSOUTH Corporation 8.38%, due 10/01/2011 10,000 8,000 7.63%, due 06/01/2012 750,000 592,500 Holding & Other Investment Offices (0.1%) EOP Operating Limited Partnership 6.38%, due 02/15/2003 50,000 50,522 Hotels & Other Lodging Places (1.4%) Harrah's Operating Company, Inc. 7.50%, due 01/15/2009 10,000 10,994 8.00%, due 02/01/2011 160,000 178,230 Hilton Hotels Corporation 7.00%, due 07/15/2004 150,000 151,313 Park Place Entertainment Corporation 7.95%, due 08/01/2003 300,000 304,643 7.50%, due 09/01/2009 (a) 350,000 351,943 Starwood Hotels & Resorts Worldwide, Inc. 6.75%, due 11/15/2003 10,000 10,013 Starwood Hotels & Resorts Worldwide, Inc. - 144A (b) 7.88%, due 05/01/2012 200,000 191,500
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PIMCO TOTAL RETURN 122 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Instruments & Related Products (1.7%) Raytheon Company 7.90%, due 03/01/2003 $ 1,450,000 $ 1,469,006 Lumber & Wood Products (0.0%) Weyerhaeuser Company (f) 2.95%, due 09/15/2003 10,000 9,993 Mortgage Bankers & Brokers (0.4%) Home Equity Asset Trust (f) 2.13%, due 11/25/2032 381,796 380,698 Motion Pictures (0.6%) AOL Time Warner Inc. 6.88%, due 05/01/2012 20,000 19,758 7.63%, due 04/15/2031 60,000 54,368 7.70%, due 05/01/2032 530,000 486,781 Oil & Gas Extraction (2.5%) Dynegy Holdings Inc. (a) 8.75%, due 02/15/2012 200,000 50,000 Kerr-McGee Corporation (f) 2.55%, due 06/28/2004 50,000 49,943 Occidental Petroleum Corporation 6.75%, due 11/15/2002 600,000 600,445 6.40%, due 04/01/2003 (f) 500,000 508,150 Transocean Inc. 6.50%, due 04/15/2003 1,000,000 1,015,453 Paper & Allied Products (1.6%) Bowater Canada Finance Corporation - 144A (b) 7.95%, due 11/15/2011 10,000 9,779 International Paper Company 8.99%, due 03/21/2003 120,000 122,987 8.00%, due 07/08/2003 1,250,000 1,295,903 Personal Credit Institutions (2.7%) CDC Mortgage Capital Trust (f) 2.12%, due 01/25/2033 387,681 386,491 General Motors Acceptance Corporation 5.48%, due 12/16/2002 20,000 20,027 2.14%, due 08/04/2003 (f) 300,000 294,476 3.23%, due 10/16/2003 (f) 500,000 493,708 2.56%, due 01/20/2004 (f) 400,000 387,186 Household Finance Corporation 7.63%, due 01/15/2003 300,000 297,494 6.13%, due 02/27/2003 200,000 200,560 3.05%, due 03/11/2004 (f) 320,000 301,733 Radio & Television Broadcasting (0.6%) British Sky Broadcasting Group PLC 8.50%, due 07/15/2009 100,000 105,000 Cox Enterprises, Inc. - 144A (b) (f) 2.72%, due 05/01/2003 200,000 198,383 Turner Broadcasting System, Inc. 7.40%, due 02/01/2004 200,000 202,317 Railroads (0.1%) Norfolk Southern Corporation (f) 2.48%, due 02/28/2005 100,000 99,947 Savings Institutions (0.3%) Golden State Holdings Inc. 7.00%, due 08/01/2003 120,000 123,215 2.82%, due 08/01/2003 (f) 100,000 99,686 Telecommunications (3.7%) BT Group PLC (f) 3.12%, due 12/15/2003 900,000 900,313 France Telecom 4.58%, due 03/14/2003 (f) 50,000 49,785 9.25%, due 03/01/2011 (g) 10,000 11,033 10.00%, due 03/01/2031 (g) 400,000 451,760 Qwest Corporation 7.63%, due 06/09/2003 50,000 48,250 6.88%, due 09/15/2033 200,000 138,000 Quest Corporation - 144A (b) 8.88%, due 03/15/2012 200,000 182,000
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Telecommunications (continued) Sprint Capital Corporation 5.70%, due 11/15/2003 $ 250,000 $ 240,196 6.88%, due 11/15/2028 560,000 371,339 8.75%, due 03/15/2032 110,000 83,677 Sprint Corporation 9.50%, due 04/01/2003 100,000 99,506 Verizon Wireless Capital LLC - 144A (b) (f) 2.23%, due 12/17/2003 600,000 588,071 WorldCom, Inc. - WorldCom Group - 144A (b) (d) 7.38%, due 01/15/2003 10,000 1,725 Tobacco Products (1.1%) R.J. Reynolds Tobacco Holdings, Inc. 7.38%, due 05/15/2003 960,000 976,210 Transportation & Public Utilities (0.2%) CMS Panhandle Holdings, LLC 6.50%, due 07/15/2009 190,000 163,532 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $38,961,860) 38,703,927 -------------- CONVERTIBLE BONDS (0.2%) Health Services (0.2%) HEALTHSOUTH Corporation (a) 3.25%, due 04/01/2003 200,000 191,500 -------------- TOTAL CONVERTIBLE BONDS (COST: $189,542) 191,500 -------------- SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (5.3%) Fannie Mae 1.71%, due 12/18/2002 4,100,000 4,090,846 U.S. Treasury Bill 1.59%, due 11/14/2002 (c) 220,000 219,874 1.52%, due 11/29/2002 10,000 9,988 1.55%, due 11/29/2002 205,000 204,752 1.56%, due 11/29/2002 10,000 9,988 1.58%, due 11/29/2002 15,000 14,982 1.59%, due 11/29/2002 15,000 14,981 1.62%, due 11/29/2002 20,000 19,975 1.66%, due 11/29/2002 30,000 29,961 1.66%, due 11/29/2002 15,000 14,981 1.66%, due 11/29/2002 10,000 9,987 -------------- TOTAL SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (COST: $4,640,315) 4,640,315 -------------- COMMERCIAL PAPER (14.5%) ABN-AMRO North America Finance, Inc. 1.75%, due 01/21/2003 2,800,000 2,788,975 CDC Commercial Paper Corporation 1.74%, due 11/21/2002 2,400,000 2,397,680 Commonwealth Bank of Australia Finance Inc. (Delaware) 1.73%, due 11/20/2002 3,000,000 2,997,262 GlaxoSmithKline PLC 1.68%, due 11/13/2002 2,500,000 2,498,600 Svenska Handelsbanken AB 1.75%, due 12/16/2002 500,000 498,906 UBS Finance (Delaware) LLC 1.78%, due 11/05/2002 1,500,000 1,499,703 -------------- TOTAL COMMERCIAL PAPER (COST: $12,681,126) 12,681,126 -------------- SHORT-TERM OBLIGATIONS (3.6%) Danske Corporation 1.76%, due 12/03/2002 1,600,000 1,597,497 Swedbank 1.76%, due 11/12/2002 1,600,000 1,594,055 -------------- TOTAL SHORT-TERM OBLIGATIONS (COST: $3,191,552) 3,191,552 --------------
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PIMCO TOTAL RETURN 123 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ PURCHASED OPTIONS (0.0%) Put Options (0.0%) 90 - Day Eurodollar Future Put Strike $95.75 Expires 03/17/2003 59 738 90 - Day Eurodollar Future Put Strike $92.75 Expires 12/16/2002 4 25 90 - Day Eurodollar Future Put Strike $95.50 Expires 12/16/2002 29 181 90 - Day Eurodollar Future Put Strike $94.25 Expires 12/02/2002 1 6 90 - Day Eurodollar Future Put Strike $95.00 Expires 12/16/2002 2 25 90 - Day Eurodollar Future Put Strike $95.75 Expires 12/16/2002 1 6 -------------- TOTAL PURCHASED OPTIONS (COST: $1,179) 981 -------------- TOTAL INVESTMENT SECURITIES (COST: $109,098,801) $ 109,131,810 ============== WRITTEN OPTIONS (-0.1%) Covered Call Options (-0.1%) U.S. Treasury Note Future Call Strike $108.00 Expires 11/23/02 7 (47,031) U.S. Treasury Note Future Call Strike $118.00 Expires 11/23/02 32 (3,000) Put Options (0.0%) 90 - Day Eurodollar Future Put Strike $98.00 Expires 03/17/2003 32 (3,600) 90 - Day Eurodollar Future Put Strike $96.50 Expires 03/17/2003 10 (63) 90 - Day Eurodollar Future Put Strike $96.50 Expires 12/16/2002 12 (75) 90 - Day Eurodollar Future Put Strike $96.75 Expires 03/17/2003 20 (250) -------------- TOTAL WRITTEN OPTIONS (PREMIUM: $72,076) (54,019) -------------- SUMMARY: Investments, at market value 124.5% $ 109,131,810 Written Options -0.1% (54,019) Liabilities in excess of other assets -24.4% (21,401,611) ------------- -------------- Net assets 100.0% $ 87,676,180 ============= ==============
FORWARD FOREIGN CURRENCY CONTRACTS:
- --------------------------------------------------------------------------------- AMOUNT IN NET UNREALIZED BOUGHT SETTLEMENT U.S. DOLLARS APPRECIATION CURRENCY (SOLD) DATE BOUGHT (SOLD) (DEPRECIATION) - --------------------------------------------------------------------------------- Euro Dollar (22,595) 11/01/02 $ (22,229) $ (154)
- -------------------------------------------------------------------------------- FUTURES CONTRACTS:
- ------------------------------------------------------------------------------- AMOUNT IN NET UNREALIZED SETTLEMENT U.S. DOLLARS APPRECIATION CONTRACTS DATE BOUGHT (SOLD) (DEPRECIATION) - ------------------------------------------------------------------------------- Euro-BOBL (h) 22 12/06/2002 $ 2,429,418 $ 22,108 Euro-BUND (i) 46 12/10/2002 5,174,424 18,214 U.S. Treasury Long Bond 7 12/19/2002 774,594 (2,625) 3 Month Euro Euribor (j) 31 12/16/2002 (1,565) 5,348 3 Month Euro Euribor (j) 75 03/17/2003 946 0 3 Month Euro Euribor (j) 44 03/17/2003 (6,663) 12,114 5-Year U.S. Treasury Note 2 12/19/2002 (227,469) (4,813) 10-Year U.S. Treasury Note 153 12/19/2002 17,551,970 84,295 90-Day Eurodollar 22 03/17/2003 5,420,800 71,270 ------------ ------------ $ 31,116,455 $ 205,912 ============ ============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $1,869,817. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (b) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. (c) At October 31, 2002, all or a portion of this security is segregated with the custodian to cover margin requirements for open future contracts. The market value of all securities segregated at October 31, 2002 is $219,874. (d) Currently in default on interest payments. (e) Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees. (f) Floating or variable rate note. Rate is listed as of October 31, 2002. (g) Securities are stepbonds. Coupon steps up or down by 25BP for each rating downgrade or upgrade by Standard & Poor's or Moody's for each notch below A-/A3. (h) Notional medium-term debt instrument issued by the German Federal Government. (i) Notional long-term debt instrument issued by the German Federal Government. (j) Euro Interbank Offered Rate. DEFINITIONS: TBA Mortgage-backed securities traded under delayed delivery commitments. Income on TBA's are not earned until settlement date. 124 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX PROTECTED PRINCIPAL STOCK
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (94.1%) (A) Aerospace (1.1%) Boeing Company (The) 6,300 $ 187,425 Goodrich Corporation 800 12,080 Lockheed Martin Corporation 3,400 196,860 Northrop Grumman Corporation 900 92,817 Textron Inc. 1,100 45,100 United Technologies Corporation 3,400 209,678 Air Transportation (0.3%) AMR Corporation (b) 1,200 5,664 Delta Air Lines, Inc. 900 9,072 FedEx Corporation 2,300 122,337 Southwest Airlines Co. 5,600 81,760 Amusement & Recreation Services (0.4%) Disney (Walt) Company (The) 15,400 257,180 Harrah's Entertainment, Inc. (b) 900 37,800 Apparel & Accessory Stores (0.3%) Gap, Inc. (The) 6,600 77,682 Limited, Inc. (The) 3,600 56,412 Nordstrom, Inc. 1,000 19,920 TJX Companies, Inc. (The) 3,800 77,976 Apparel Products (0.2%) Cintas Corporation 1,300 61,451 Jones Apparel Group, Inc. (b) 1,000 34,640 Liz Claiborne, Inc. 800 23,776 V.F. Corporation 800 29,456 Auto Repair, Services & Parking (0.0%) Ryder System, Inc. 500 11,475 Automotive (1.0%) Dana Corporation 1,200 12,000 Delphi Automotive Systems Corporation 4,000 27,840 Ford Motor Company 13,600 115,056 General Motors Corporation 4,000 133,000 Harley-Davidson, Inc. 2,300 120,290 Honeywell International Inc. 6,000 143,640 Navistar International Corporation (b) 500 11,210 PACCAR Inc. 900 39,708 TRW Inc. 1,000 53,300 Visteon Corporation 1,000 6,590 Automotive Dealers & Service Stations (0.1%) AutoZone, Inc. (b) 800 68,616 Beverages (2.9%) Anheuser-Busch Companies, Inc. 6,600 348,216 Brown-Forman Corporation - Class B 600 43,374 Coca-Cola Company (The) 18,400 855,232 Coca-Cola Enterprises Inc. 3,400 81,056 Coors (Adolph) Company 300 20,544 Pepsi Bottling Group, Inc. (The) 2,300 61,985 PepsiCo, Inc. 13,200 582,120 Business Services (1.1%) Clear Channel Communications, Inc. (b) 4,400 163,020 eBay Inc. (b) 2,300 145,498 Equifax Inc. 1,100 25,916 First Data Corporation 5,600 195,664 Interpublic Group of Companies, Inc. (The) 2,900 34,713 Moody's Corporation 1,200 56,520 Omnicom Group, Inc. 1,500 86,445 Robert Half International Inc. (b) 1,400 23,380 TMP Worldwide Inc. (b) 800 12,384
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Chemicals & Allied Products (3.8%) Air Products and Chemicals, Inc. 1,800 $ 79,560 Avon Products, Inc. 1,900 92,131 Clorox Company (The) 1,900 85,367 Colgate-Palmolive Company 3,800 208,924 Dow Chemical Company (The) 6,700 174,133 du Pont (E.I.) de Nemours and Company 7,400 305,250 Eastman Chemical Company 700 25,438 Ecolab Inc. 1,000 48,250 Great Lakes Chemical Corporation 400 9,728 Hercules Incorporated (b) 800 7,680 International Flavors & Fragrances Inc. 800 26,840 Monsanto Company 1,671 27,622 Pharmacia Corporation 9,800 421,400 PPG Industries, Inc. 1,300 61,139 Praxair, Inc. 1,300 70,850 Procter & Gamble Company (The) 9,800 866,810 Rohm and Haas Company 1,800 59,886 Sherwin-Williams Company (The) 1,200 32,820 Sigma-Aldrich Corporation 600 27,450 Commercial Banks (9.3%) AmSouth Bancorporation 2,800 54,880 Bank of America Corporation 11,400 795,720 Bank of New York Company, Inc. (The) 5,300 137,800 Bank One Corporation 8,900 343,273 BB&T Corporation 3,400 123,250 Citigroup Inc. 38,400 1,418,880 Comerica Incorporated 1,400 61,124 Concord EFS, Inc. (b) 3,500 49,980 Fifth Third Bancorp 4,200 266,700 First Tennessee National Corporation 1,000 37,080 FleetBoston Financial Corporation 7,900 184,781 Huntington Bancshares Incorporated 2,000 37,820 KeyCorp 3,300 80,619 Marshall & Ilsley Corporation 1,700 47,872 MBNA Corporation 9,600 194,976 Mellon Financial Corporation 3,400 96,186 Morgan Chase & Co. (J.P.) 15,000 311,250 National City Corporation 4,400 119,372 North Fork Bancorporation, Inc. 1,300 49,998 Northern Trust Corporation 1,800 62,676 PNC Financial Services Group, Inc. (The) 2,300 93,518 Providian Financial Corporation (b) 2,300 10,235 Regions Financial Corporation 1,800 60,966 SouthTrust Corporation 2,600 66,612 State Street Corporation 2,500 103,425 SunTrust Banks, Inc. 2,300 139,932 Synovus Financial Corp. 2,300 47,127 U.S. Bancorp 14,300 301,587 Union Planters Corporation 1,600 45,216 Wachovia Corporation 10,400 361,816 Wells Fargo & Company 12,700 640,969 Zions Bancorporation 800 32,168 Communication (1.1%) Comcast Corporation - Class A (b) 7,000 161,070 Viacom, Inc. - Class B (b) 13,200 588,852 Communications Equipment (0.7%) ADC Telecommunications, Incorporated (b) 5,800 9,164 Avaya Inc. (b) 2,800 5,600 Ciena Corporation (b) 3,300 12,144 Comverse Technology, Inc. (b) 1,500 10,800 Corning Incorporated (b) 7,100 13,277 Lucent Technologies Inc. (b) 25,400 31,242 Motorola, Inc. 17,000 155,890 QUALCOMM Incorporated (b) 5,600 193,312 Rockwell Collins, Inc. 1,500 33,795 Scientific-Atlanta, Inc. 1,200 14,652 Tellabs, Inc. (b) 3,200 24,576
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PROTECTED PRINCIPAL STOCK 125 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Computer & Data Processing Services (5.3%) Adobe Systems Incorporated 1,900 $ 44,916 Autodesk, Inc. 1,000 11,700 Automatic Data Processing, Inc. 4,500 191,385 BMC Software, Inc. (b) 2,000 31,880 Citrix Systems, Inc. (b) 1,400 10,570 Computer Associates International, Inc. 4,100 60,926 Computer Sciences Corporation (b) 1,400 45,206 Compuware Corporation (b) 2,900 14,068 Convergys Corporation (b) 1,400 20,832 Electronic Arts Inc. (b) 1,100 71,632 Electronic Data Systems Corporation 3,400 51,204 Fiserv, Inc. (b) 1,500 46,860 IMS Health Incorporated 2,300 34,592 Intuit Inc. (b) 1,700 88,264 Mercury Interactive Corporation (b) 700 18,459 Microsoft Corporation (b) 40,400 2,160,188 Novell, Inc. (b) 2,800 6,804 Oracle Corporation (b) 41,000 420,250 Parametric Technology Corporation (b) 2,100 4,851 PeopleSoft, Inc. (b) 2,300 41,630 Rational Software Corporation (b) 1,500 9,930 Sabre Holdings Corporation (b) 1,100 21,098 Siebel Systems, Inc. (b) 3,400 25,568 SunGard Data Systems Inc. (b) 2,300 50,991 Unisys Corporation (b) 2,400 20,952 VERITAS Software Corporation (b) 3,200 48,800 Yahoo! Inc. (b) 4,300 64,156 Computer & Office Equipment (4.3%) Apple Computer, Inc. (b) 2,700 43,389 Cisco Systems, Inc. (b) 54,700 611,546 Dell Computer Corporation (b) 19,400 555,034 EMC Corporation (b) 16,800 85,848 Gateway, Inc. (b) 2,400 7,200 Hewlett-Packard Company 22,700 358,660 International Business Machines Corporation 12,700 1,002,538 Lexmark International Group, Inc. (b) 1,000 59,420 NCR Corporation (b) 800 17,792 Network Appliance, Inc. (b) 2,500 22,428 Pitney Bowes Inc. 1,900 63,745 Sun Microsystems, Inc. (b) 24,200 71,656 Symbol Technologies, Inc. 1,800 15,570 Xerox Corporation (b) 5,200 34,528 Construction (0.1%) Ashland Inc. 600 15,750 Centex Corporation 500 22,740 Fluor Corporation 700 16,555 KB Home 400 18,880 Pulte Corporation 500 22,960 Department Stores (0.5%) Dillard's, Inc. - Class A 700 11,543 Federated Department Stores, Inc. (b) 1,600 49,120 J.C. Penney Company, Inc. 2,200 41,910 Kohl's Corporation (b) 2,600 151,970 May Department Stores Company (The) 2,300 53,705 Sears, Roebuck and Co. 2,400 63,024 Drug Stores & Proprietary Stores (0.5%) CVS Corporation 3,000 83,190 Walgreen Co. 7,700 259,875 Educational Services (0.1%) Apollo Group, Inc. - Class A (b) 1,400 58,100
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Electric Services (1.5%) AES Corporation (The) (b) 3,800 $ 6,726 Allegheny Energy, Inc. 1,000 5,700 American Electric Power Company, Inc. 2,600 66,664 Calpine Corporation (b) 2,900 5,800 CenterPoint Energy, Inc. 2,300 16,284 Constellation Energy Group, Inc. 1,300 33,254 Dominion Resources, Inc. 2,200 105,600 DTE Energy Company 1,300 58,617 Duke Energy Corporation 6,100 124,989 Edison International (b) 2,500 25,125 Entergy Corporation 1,800 79,362 FirstEnergy Corp. 2,300 74,635 FPL Group, Inc. 1,400 82,572 Mirant Corporation (b) 3,100 6,634 Pinnacle West Capital Corporation 700 19,950 PPL Corporation 1,100 38,071 Progress Energy, Inc. 1,800 75,096 Southern Company (The) 5,100 151,470 TECO Energy, Inc. 1,200 17,760 TXU Corp. 2,200 31,570 Electric, Gas & Sanitary Services (0.7%) Ameren Corporation 1,100 44,440 Cinergy Corp. 1,300 40,443 Citizens Communications Company (b) 2,300 19,136 CMS Energy Corporation 1,000 7,830 Consolidated Edison, Inc. 1,700 72,369 Exelon Corporation 2,400 120,960 NiSource Inc. 1,700 28,084 PG&E Corporation (b) 3,000 32,550 Public Service Enterprise Group Incorporated 1,700 48,705 Sempra Energy 1,600 35,424 Xcel Energy, Inc. 3,000 31,200 Electronic & Other Electric Equipment (3.2%) American Power Conversion Corporation (b) 1,600 20,672 Cooper Industries, Inc. - Class A 800 25,192 Eaton Corporation 600 41,034 Emerson Electric Co. 3,300 158,994 General Electric Company 74,200 1,873,550 Maytag Corporation 700 18,060 Thomas & Betts Corporation (b) 500 8,280 Whirlpool Corp. 600 27,966 Electronic Components & Accessories (2.8%) Advanced Micro Devices, Inc. (b) 2,600 15,964 Altera Corporation (b) 3,000 35,160 Analog Devices, Inc. (b) 2,800 75,040 Applied Micro Circuits Corporation (b) 2,300 9,016 Broadcom Corporation - Class A (b) 2,200 26,356 Intel Corporation 50,100 866,730 Jabil Circuit, Inc. (b) 1,600 24,688 JDS Uniphase Corporation (b) 10,300 23,082 Linear Technology Corporation 2,400 66,336 LSI Logic Corporation (b) 2,800 16,520 Maxim Integrated Products 2,400 76,416 Micron Technology, Inc. (b) 4,300 68,800 Molex Incorporated 1,500 39,615 National Semiconductor Corporation (b) 1,400 18,592 NVIDIA Corporation (b) 1,200 14,280 PMC-Sierra, Inc. (b) 1,300 6,331 Power-One, Inc. (b) 700 3,767 QLogic Corporation (b) 800 27,848 Sanmina Corporation (b) 3,600 11,088 Solectron Corporation (b) 6,100 13,725 Texas Instruments Incorporated 12,900 204,594 Tyco International Ltd. 15,100 218,346 Xilinx, Inc. (b) 2,500 47,475 Environmental Services (0.2%) Allied Waste Industries, Inc. (b) 1,600 13,040 Waste Management, Inc. 4,400 101,288
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PROTECTED PRINCIPAL STOCK 126 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Fabricated Metal Products (0.5%) Crane Co. 500 $ 9,185 Fortune Brands, Inc. 1,200 60,072 Gillette Company (The) 8,000 239,040 McDermott International, Inc. (b) 500 1,775 Parker-Hannifin Corporation 900 39,267 Stanley Works (The) 700 22,659 Finance (4.0%) Standard & Poor's 500 Depositary Receipt 31,000 2,752,800 Food & Kindred Products (1.2%) Archer Daniels Midland Co. 4,700 64,014 Campbell Soup Company 3,200 67,456 ConAgra Foods, Inc. 3,800 92,150 General Mills, Inc. 2,800 115,696 Heinz (H.J.) Company 2,700 86,832 Hershey Foods Corporation 1,100 71,577 Kellogg Company 3,200 101,952 Sara Lee Corporation 5,800 132,414 Wrigley (Wm.) Jr. Company 1,800 94,986 Food Stores (0.4%) Albertson's, Inc. 3,200 71,392 Kroger Co. (The) (b) 5,800 86,072 Safeway Inc. (b) 3,400 78,540 Winn-Dixie Stores, Inc. 1,100 16,522 Furniture & Fixtures (0.1%) Johnson Controls, Inc. 800 62,400 Leggett & Platt, Incorporated 1,600 33,360 Furniture & Home Furnishings Stores (0.1%) Bed Bath & Beyond Inc. (b) 2,300 81,558 Gas Production & Distribution (0.2%) El Paso Corporation 4,100 31,775 KeySpan Corporation 1,100 40,183 Kinder Morgan, Inc. 900 32,949 Nicor Inc. 400 12,416 Peoples Energy Corporation 300 10,905 Williams Companies, Inc. (The) 3,600 6,768 Health Services (0.5%) HCA Inc. 3,600 156,564 Health Management Associates, Inc. - Class A 1,900 36,328 HEALTHSOUTH Corporation (b) 3,000 13,050 Manor Care, Inc. (b) 800 15,816 Tenet Healthcare Corporation (b) 3,400 97,750 Holding & Other Investment Offices (0.3%) Equity Office Properties Trust 3,200 77,056 Equity Residential Properties Trust 2,200 52,184 Plum Creek Timber Company, Inc. 1,500 33,915 Simon Property Group, Inc. 1,500 51,225 Hotels & Other Lodging Places (0.2%) Hilton Hotels Corporation 2,800 34,440 Marriott International, Inc. - Class A 2,000 61,860 Starwood Hotels & Resorts Worldwide, Inc. 1,600 37,280 Industrial Machinery & Equipment (1.3%) American Standard Companies Inc. (b) 600 40,020 Applied Materials, Inc. (b) 12,200 183,366 Baker Hughes Incorporated 2,600 75,530 Black & Decker Corporation (The) 700 32,732 Brunswick Corporation 800 16,464 Caterpillar, Inc. 2,600 106,210 Cummins Inc. 400 9,584 Deere & Company 1,900 88,141 Dover Corporation 1,600 40,128 Illinois Tool Works Inc. 2,300 141,220 Ingersoll-Rand Company - Class A 1,300 50,700 ITT Industries, Inc. 800 51,984 Novellus Systems, Inc. (b) 1,100 34,760 Pall Corporation 900 15,633
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Instruments & Related Products (0.7%) Agilent Technologies, Inc. (b) 3,500 $ 48,125 Applera Corporation - Applied Biosystems Group 1,700 34,391 Danaher Corporation 1,200 69,420 Eastman Kodak Company 2,300 75,785 KLA-Tencor Corporation (b) 1,500 53,415 Millipore Corporation 400 13,604 PerkinElmer, Inc. 1,000 6,960 Raytheon Company 3,100 91,450 Rockwell International Corporation 1,500 24,825 Snap-on Incorporated 500 13,025 Tektronix, Inc. (b) 800 14,136 Teradyne, Inc. (b) 1,500 18,165 Thermo Electron Corporation (b) 1,400 25,746 Waters Corporation (b) 1,000 25,180 Insurance (4.2%) ACE Limited 2,100 64,575 Aetna Inc. 1,100 44,330 AFLAC Incorporated 3,600 109,584 Allstate Corporation (The) 5,100 202,878 Ambac Financial Group, Inc. 800 49,440 American International Group, Inc. 19,600 1,225,980 Anthem, Inc. (b) 1,000 63,000 Aon Corporation 2,200 40,326 Chubb Corporation 1,400 78,974 CIGNA Corporation 1,100 39,754 Cincinnati Financial Corporation 1,300 49,387 Humana Inc. (b) 1,300 15,834 Loews Corporation 1,500 64,710 MBIA, Inc. 1,200 52,380 MGIC Investment Corporation 800 33,568 Principal Financial Group, Inc. 2,700 75,735 Progressive Corporation (The) 1,800 99,000 SAFECO Corporation 1,000 35,560 St. Paul Companies, Inc. (The) 1,700 55,760 Travelers Property Casualty Corp. - Class B (b) 7,208 97,452 UnitedHealth Group Incorporated 2,300 209,185 UnumProvident Corporation 2,000 41,040 WellPoint Health Networks Inc. (b) 1,100 82,731 XL Capital Ltd. - Class A 1,100 83,765 Insurance Agents, Brokers & Service (0.6%) Hartford Financial Services Group, Inc. (The) 2,000 79,000 Marsh & McLennan Companies, Inc. 3,900 182,169 MetLife, Inc. 5,100 121,788 Life Insurance (0.5%) Jefferson-Pilot Corporation 1,200 48,180 John Hancock Financial Services, Inc. 2,300 67,390 Lincoln National Corporation 1,500 45,765 Prudential Financial, Inc. (b) 4,200 122,640 Torchmark Corporation 900 32,220 Lumber & Other Building Materials (1.1%) Home Depot, Inc. (The) 17,500 505,400 Lowe's Companies, Inc. 5,700 237,861 Lumber & Wood Products (0.3%) Georgia-Pacific Corporation 1,900 23,180 Louisiana-Pacific Corporation (b) 800 5,392 Masco Corporation 3,400 69,904 Weyerhaeuser Company 1,800 81,540 Management Services (0.1%) Paychex, Inc. 2,900 83,578 Manufacturing Industries (0.2%) Hasbro Inc. 1,400 14,308 International Game Technology (b) 800 60,168 Mattel, Inc. 3,300 60,588
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PROTECTED PRINCIPAL STOCK 127 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Medical Instruments & Supplies (1.6%) Bard, (C.R.) Inc. 400 $ 22,372 Bausch & Lomb Incorporated 500 15,550 Baxter International Inc. 4,300 107,586 Becton, Dickinson and Company 2,100 61,971 Biomet, Incorporated 2,200 64,812 Boston Scientific Corporation (b) 3,100 116,653 Guidant Corporation (b) 2,300 68,011 Medtronic, Inc. 9,200 412,160 St. Jude Medical, Inc. (b) 1,400 49,854 Stryker Corporation 1,600 100,960 Zimmer Holdings, Inc. (b) 1,500 61,830 Metal Cans & Shipping Containers (0.0%) Ball Corporation 500 24,215 Metal Mining (0.1%) Freeport-McMoRan Copper & Gold Inc. - Class B (b) 1,100 13,420 Newmont Mining Corporation 3,000 74,160 Mining (0.0%) Vulcan Materials Company 800 26,848 Mortgage Bankers & Brokers (0.1%) Countrywide Credit Industries, Inc. 900 45,279 Motion Pictures (0.7%) AOL Time Warner Inc. (b) 33,200 489,700 Motor Vehicles, Parts & Supplies (0.1%) Genuine Parts Company 1,400 41,356 Oil & Gas Extraction (1.6%) Anadarko Petroleum Corporation 2,000 89,080 Apache Corporation 1,100 59,466 BJ Services Company (b) 1,200 36,396 Burlington Resources Inc. 1,600 65,920 ConocoPhillips 5,104 247,544 Devon Energy Corporation 1,200 60,600 Dynegy Inc. 2,800 1,904 EOG Resources, Inc. 900 33,327 Halliburton Company 3,300 53,394 Kerr-McGee Corporation 800 34,800 Nabors Industries Ltd. (b) 1,100 38,467 Noble Corporation (b) 1,000 32,320 Occidental Petroleum Corporation 2,900 82,737 Rowan Companies, Inc. (b) 800 16,312 Schlumberger Limited 4,100 164,451 Transocean Inc. 2,400 52,752 Unocal Corporation 2,000 55,280 Paper & Allied Products (1.2%) 3M Company 3,000 380,820 Avery Dennison Corporation 800 49,792 Bemis Company, Inc. 400 20,836 International Paper Company 3,400 118,762 Kimberly-Clark Corporation 3,600 185,400 MeadWestvaco Corporation 1,600 33,520 Pactiv Corporation (b) 1,200 23,808 Temple-Inland Inc. 400 16,408 Paper & Paper Products (0.0%) Boise Cascade Corporation 500 11,895 Personal Credit Institutions (0.4%) Capital One Financial Corporation 1,800 54,846 Household International, Inc. 3,400 80,784 SLM Corporation 1,200 123,288 Personal Services (0.2%) Block, (H & R) Inc. 1,500 66,570 Cendant Corp. (b) 7,900 90,850 Petroleum Refining (3.5%) Amerada Hess Corporation 800 41,040 ChevronTexaco Corporation 8,100 547,803 Exxon Mobil Corporation 50,800 1,709,928 Marathon Oil Corporation 2,300 48,070 Sunoco, Inc. 600 17,988 United States Steel Corporation 800 10,280
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Pharmaceuticals (10.1%) Abbott Laboratories 11,600 $ 485,692 Allergan, Inc. 1,000 54,450 AmerisourceBergen Corporation 800 56,920 Amgen Inc. (b) 9,672 450,328 Biogen, Inc. (b) 1,200 44,028 Bristol-Myers Squibb Co. 14,600 359,306 Cardinal Health, Inc. 3,400 235,314 Chiron Corporation (b) 1,500 59,250 Forest Laboratories, Inc. (b) 1,400 137,186 Genzyme Corporation - General Division (b) 1,700 47,345 Johnson & Johnson 22,700 1,333,625 King Pharmaceuticals, Inc. (b) 2,000 30,700 Lilly (Eli) and Company 8,400 466,200 McKesson HBOC, Inc. 2,300 68,563 Medimmune, Inc. (b) 2,000 51,100 Merck & Co., Inc. 16,900 916,656 Pfizer Inc. 46,500 1,477,305 Schering-Plough Corporation 10,900 232,715 Watson Pharmaceuticals, Inc. (b) 800 21,992 Wyeth 10,000 335,000 Primary Metal Industries (0.4%) Alcoa Inc. 6,400 141,184 Allegheny Technologies Incorporated 700 4,795 Andrew Corporation (b) 800 6,880 Engelhard Corporation 1,000 22,150 Nucor Corporation 700 29,498 Phelps Dodge Corporation (b) 800 24,816 Worthington Industries, Inc. 700 13,188 Printing & Publishing (0.8%) American Greetings Corporation - Class A 600 9,024 Deluxe Corporation 500 23,110 Donnelley (R.R.) & Sons Company 900 18,045 Dow Jones & Company, Inc. 700 24,584 Gannett Co., Inc. 2,200 167,046 Knight-Ridder, Inc. 700 42,126 McGraw-Hill Companies, Inc. (The) 1,500 96,750 Meredith Corporation 400 18,220 New York Times Company (The) - Class A 1,200 58,092 Tribune Company 2,300 110,515 Radio & Television Broadcasting (0.1%) Univision Communications Inc. - Class A (b) 1,800 46,638 Radio, Television & Computer Stores (0.1%) Best Buy Co., Inc. (a) 2,400 49,464 Circuit City Stores, Inc. - Circuit City Group 1,700 16,847 RadioShack Corporation 1,400 29,260 Railroads (0.4%) Burlington Northern Santa Fe Corp. 3,000 77,190 CSX Corporation 1,700 46,920 Norfolk Southern Corporation 3,000 60,600 Union Pacific Corporation 2,000 118,100 Research & Testing Services (0.0%) Quintiles Transnational Corp. (b) 900 9,675 Restaurants (0.5%) Darden Restaurants, Inc. 1,400 26,572 McDonald's Corporation 9,600 173,856 Starbucks Corporation (b) 3,000 71,250 Wendy's International, Inc. 900 28,512 YUM! Brands, Inc. (b) 2,300 51,819 Retail Trade (0.2%) Alberto-Culver Company - Class B 500 25,810 Office Depot, Inc. (b) 2,300 33,097 Staples, Inc. (b) 3,400 52,700 Tiffany & Co. 1,100 28,798 Toys "R" Us, Inc. (b) 1,700 16,983
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX PROTECTED PRINCIPAL STOCK 128 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Rubber & Misc. Plastic Products (0.3%) Cooper Tire & Rubber Company 600 $ 7,806 Goodyear Tire & Rubber Company (The) 1,300 9,230 Newell Financial Trust I 2,200 71,324 NIKE, Inc. - Class B 2,200 103,818 Reebok International Ltd. (b) 500 14,125 Sealed Air Corporation (b) 700 10,724 Tupperware Corporation 500 8,070 Savings Institutions (0.6%) Charter One Financial, Inc. 1,890 57,229 Golden West Financial Corporation 1,200 82,872 Washington Mutual, Inc. 7,300 261,048 Security & Commodity Brokers (2.3%) American Express Company 10,000 363,700 Bear Stearns Companies Inc. (The) 800 48,840 Franklin Resources, Inc. 2,100 69,279 Goldman Sachs Group, Inc. (The) 3,400 243,440 Lehman Brothers Holdings Inc. 2,000 106,540 Merrill Lynch & Co., Inc. 6,500 246,675 Morgan Stanley Dean Witter & Co. 8,300 323,036 Schwab (Charles) Corporation (The) 10,400 95,472 Stilwell Financial Inc. 1,800 21,078 T. Rowe Price Group, Inc. 1,000 28,230 Telecommunications (3.9%) ALLTEL Corporation 2,300 114,333 AT&T Corp. 28,500 371,640 AT&T Wireless Services, Inc. (b) 20,100 138,087 BellSouth Corporation 14,000 366,100 CenturyTel, Inc. 1,100 31,163 Nextel Communications, Inc. - Class A (b) 6,000 67,680 Qwest Communications International Inc. (b) 12,400 42,036 SBC Communications Inc. 24,800 636,368 Sprint Corporation (FON Group) 6,600 81,972 Sprint Corporation (PCS Group) (b) 7,400 25,752 Verizon Communications, Inc. 20,300 766,528 Tobacco Products (1.1%) Philip Morris Companies Inc. 16,100 656,075 R.J. Reynolds Tobacco Holdings, Inc. 700 28,385 UST Inc. 1,300 39,767 Transportation Equipment (0.2%) General Dynamics Corporation 1,600 126,608 Trucking & Warehousing (0.7%) United Parcel Service, Inc. - Class B 8,400 504,084 U.S. Government Agencies (1.2%) Fannie Mae 7,500 501,450 Freddie Mac 5,000 307,900 Variety Stores (3.2%) Big Lots, Inc. (a) 900 14,940 Costco Wholesale Corporation (b) 3,400 115,362 Dollar General Corporation 2,500 34,900 Family Dollar Stores, Inc. 1,400 43,106 Target Corporation 6,700 201,804 Wal-Mart Stores, Inc. 33,200 1,777,860 Water Transportation (0.2%) Carnival Corporation 4,200 109,704
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Wholesale Trade Durable Goods (0.1%) Grainger (W.W.), Inc. 800 $ 38,768 Wholesale Trade Nondurable Goods (0.2%) SUPERVALU INC 1,000 16,800 SYSCO Corporation 4,800 152,064 -------------- TOTAL COMMON STOCKS (COST: $69,527,400) 64,539,228 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ PURCHASED OPTIONS (0.4%) Put Options (0.4%) S&P 500 Index Put Strike $725.00 Expires 11/16/2002 182 $ 11,830 S&P 500 Index Put Strike $800.00 Expires 12/21/2002 182 243,880 -------------- TOTAL PURCHASED OPTIONS (COST: $631,580) 255,710 -------------- TOTAL INVESTMENT SECURITIES (COST: $70,158,980) $ 64,794,938 ============== WRITTEN OPTIONS ( -1.9%) Covered Call Options (-1.9%) S&P 500 Index Call Strike $875.00 Expires 11/16/2002 91 $ (230,230) S&P 500 Index Call Strike $900.00 Expires 11/16/2002 182 (232,960) S&P 500 Index Call Strike $925.00 Expires 11/16/2002 192 (96,000) S&P 500 Index Call Strike $900.00 Expires 12/21/2002 262 (715,260) -------------- TOTAL WRITTEN OPTIONS (PREMIUM: $1,670,232) $ (1,274,450) ============== SUMMARY: Investments, at market value 94.5% $ 64,794,938 Written options -1.9% (1,274,450) Other assets in excess of liabilities 7.4% 5,075,429 ------------- -------------- Net assets 100.0% $ 68,595,917 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) Substantially all of the fund's common stocks are memo pledged as collateral by the custodian for the listed short index option contracts written by the fund (See Note 1). (b) No dividends were paid during the preceding twelve months. 129 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX SALOMON ALL CAP
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ PREFERRED STOCKS (2.1%) Motion Pictures (2.1%) News Corporation Limited (The) - ADR (b) 272,200 $ 5,381,394 -------------- TOTAL PREFERRED STOCKS (COST: $7,787,574) 5,381,394 -------------- COMMON STOCKS (98.3%) Amusement & Recreation Services (1.9%) Disney (Walt) Company (The) (b) 301,900 5,041,730 Automotive (0.9%) Honeywell International Inc. 101,800 2,437,092 Chemicals & Allied Products (1.1%) Cabot Corporation 3,300 78,144 Dow Chemical Company (The) 105,100 2,731,549 Commercial Banks (1.2%) Bank One Corporation 78,700 3,035,459 Communication (6.0%) Cablevision Systems Corporation - Class A (a) (b) 303,679 2,903,171 Comcast Corporation - Class A (a) (b) 262,900 6,049,329 Liberty Media Corporation - Class A (a) 820,800 6,788,016 Communications Equipment (5.4%) Motorola, Inc. (b) 495,800 4,546,486 Nokia Oyj - ADR 346,900 5,765,478 Telefonaktiebolaget LM Ericsson - ADR (b) 464,660 3,666,167 Computer & Data Processing Services (3.0%) Micromuse Inc. (a) 618,000 1,421,400 RealNetworks, Inc. (a) 710,000 2,492,100 Unisys Corporation (a) 436,500 3,810,645 Computer & Office Equipment (5.1%) 3Com Corporation (a) 1,248,500 5,267,422 Electronics for Imaging, Inc. (a) 101,000 1,840,220 Hewlett-Packard Company 209,900 3,316,420 Maxtor Corporation (a) 763,000 2,868,880 Department Stores (1.4%) Federated Department Stores, Inc. (a) 121,000 3,714,700 Electronic Components & Accessories (5.8%) Agere Systems Inc. (a) 1,418,980 1,234,513 Intel Corporation 224,900 3,890,770 Lattice Semiconductor Corporation (a) 117,000 792,090 LSI Logic Corporation (a) 553,200 3,263,880 Solectron Corporation (a) 1,455,000 3,273,750 Taiwan Semiconductor Manufacturing Company Ltd. - ADR (a) 339,500 2,654,890 Environmental Services (2.2%) Waste Management, Inc. 252,100 5,803,342 Food & Kindred Products (0.7%) Archer Daniels Midland Co. 131,700 1,793,754 Gas Production & Distribution (1.0%) El Paso Corporation (b) 325,000 2,518,750 Health Services (0.4%) Enzo Biochemical, Inc. (a) (b) 63,900 930,384 Hotels & Other Lodging Places (0.5%) Extended Stay America, Inc. (a) 110,300 1,378,750 Industrial Machinery & Equipment (1.3%) Deere & Company 40,000 1,855,600 Ingersoll-Rand Company - Class A 40,300 1,571,700 Instruments & Related Products (3.6%) Agilent Technologies, Inc. (a) 230,900 3,174,875 Eastman Kodak Company (b) 98,100 3,232,395 Raytheon Company 102,600 3,026,700 Insurance (8.5%) Ambac Financial Group, Inc. 65,000 4,017,000 Chubb Corporation 91,700 5,172,797 MBIA, Inc. 67,700 2,955,105 MGIC Investment Corporation (b) 67,000 2,811,320 Radian Group, Inc. 56,600 1,996,282 St. Paul Companies, Inc. (The) (b) 160,200 5,254,560 Insurance Agents, Brokers & Service (1.0%) Hartford Financial Services Group, Inc. (The) 64,100 2,531,950 Lumber & Other Building Materials (1.3%) Home Depot, Inc. (The) 116,000 3,350,080 Lumber & Wood Products (2.1%) Weyerhaeuser Company 119,900 5,431,470
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Manufacturing Industries (1.3%) Hasbro Inc. 317,000 $ 3,239,740 Mortgage Bankers & Brokers (2.7%) Countrywide Credit Industries, Inc. (b) 137,600 6,922,656 Motion Pictures (5.3%) AOL Time Warner Inc. (a) 438,300 6,464,925 Metro-Goldwyn-Mayer Inc. (a) 315,000 4,032,000 News Corporation Limited (The) - ADR (b) 149,900 3,482,177 Oil & Gas Extraction (3.1%) Anadarko Petroleum Corporation 73,400 3,269,236 GlobalSantaFe Corporation 108,200 2,585,980 Schlumberger Limited 57,300 2,298,303 Petroleum Refining (2.7%) Amerada Hess Corporation 22,700 1,164,510 ChevronTexaco Corporation 86,200 5,829,706 Pharmaceuticals (15.3%) Abbott Laboratories 156,900 6,569,403 Aphton Corporation (a) 173,000 346,000 Bristol-Myers Squibb Co. 229,300 5,643,073 Elan Corporation PLC - ADR (a) 1,050,000 1,837,500 ICN Pharmaceuticals, Inc. 170,800 1,426,180 Johnson & Johnson 72,000 4,230,000 Merck & Co., Inc. 54,300 2,945,232 Novartis AG - ADR 137,600 5,220,544 Pfizer Inc. 118,000 3,748,860 Schering-Plough Corporation 260,000 5,551,000 Wyeth 71,300 2,388,550 Primary Metal Industries (2.3%) Alcoa Inc. 188,000 4,147,280 Brush Engineered Materials Inc. (a) 92,500 499,500 Engelhard Corporation 65,900 1,459,685 Residential Building Construction (0.4%) Clayton Homes, Inc. (b) 96,000 1,086,720 Restaurants (1.3%) McDonald's Corporation 194,000 3,513,340 Security & Commodity Brokers (2.4%) American Express Company 174,400 6,342,928 Telecommunications (4.9%) Nippon Telegraph and Telephone Corporation - ADR 100,000 1,845,000 SBC Communications Inc. 210,700 5,406,562 Vodafone Group PLC - ADR (b) 350,200 5,575,184 Transportation Equipment (0.2%) Fleetwood Enterprises, Inc. (a) (b) 103,700 580,720 Variety Stores (2.0%) Costco Wholesale Corporation (a) 156,000 5,293,080 -------------- TOTAL COMMON STOCKS (COST: $329,281,462) 256,636,689 -------------- TOTAL INVESTMENT SECURITIES (COST: $337,069,036) $ 262,018,083 ============== SUMMARY: Investments, at market value 100.4% $ 262,018,083 Liabilities in excess of other assets -0.4% (1,062,178) ------------- -------------- Net assets 100.0% $ 260,955,905 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $48,507,413. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 130 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX SALOMON INVESTORS VALUE
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE BONDS (0.2%) Communication (0.2%) Charter Communications, Inc. (b) 5.75%, due 10/15/2005 $ 594,000 $ 127,710 -------------- TOTAL CONVERTIBLE BONDS (COST: $311,418) 127,710 --------------
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (0.6%) Automotive (0.6%) Ford Motor Company Capital Trust II 11,000 $ 403,700 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $561,037) 403,700 -------------- COMMON STOCKS (90.7%) Aerospace (1.2%) United Technologies Corporation 13,100 807,877 Amusement & Recreation Services (1.1%) MGM MIRAGE (a) 24,800 771,280 Apparel & Accessory Stores (1.3%) Gap, Inc. (The) (b) 78,400 922,768 Automotive (1.2%) Honeywell International Inc. 33,600 804,384 Chemicals & Allied Products (2.9%) Dow Chemical Company (The) 23,000 597,770 Pharmacia Corporation 32,000 1,376,000 Commercial Banks (11.3%) Bank of America Corporation 12,200 851,560 Bank of New York Company, Inc. (The) 42,700 1,110,200 Comerica Incorporated 3,000 130,980 FleetBoston Financial Corporation 36,200 846,718 MBNA Corporation 53,100 1,078,461 Morgan Chase & Co. (J.P.) 39,500 819,625 U.S. Bancorp 50,800 1,071,372 Wachovia Corporation 26,500 921,935 Wells Fargo & Company 19,100 963,977 Communication (2.2%) Comcast Corporation - Class A (a)(b) 21,100 485,511 Liberty Media Corporation - Class A (a) 120,300 994,881 Communications Equipment (6.0%) Comverse Technology, Inc. (a)(b) 85,000 612,000 Lucent Technologies Inc. (a) 1,047,000 1,287,810 Motorola, Inc. 82,200 753,774 Nokia Oyj - ADR 88,300 1,467,546 Computer & Office Equipment (5.4%) 3Com Corporation (a) 63,200 266,641 Dell Computer Corporation (a) 9,200 263,212 Hewlett-Packard Company 105,100 1,660,579 International Business Machines Corporation 6,700 528,898 Sun Microsystems, Inc. (a) 327,800 970,616 Department Stores (1.2%) Federated Department Stores, Inc. (a) 27,800 853,460 Electric Services (1.1%) American Electric Power Company, Inc. (b) 29,600 758,944 Electronic Components & Accessories (2.6%) Agere Systems Inc. (a) 2,100 1,827 Agere Systems Inc. - Class B (a) 57,599 53,567 Intel Corporation 7,200 124,560 Micron Technology, Inc. (a)(b) 27,400 438,400 National Semiconductor Corporation (a) 47,000 624,160 Solectron Corporation (a) 227,500 511,875 Food & Kindred Products (1.0%) General Mills, Inc. 15,900 656,988
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Food Stores (1.5%) Safeway Inc. (a) 44,000 $ 1,016,400 Gas Production & Distribution (0.7%) El Paso Corporation 65,900 510,725 Health Services (0.9%) HCA Inc. 14,400 626,256 Holding & Other Investment Offices (1.5%) Equity Office Properties Trust 41,300 994,504 Industrial Machinery & Equipment (0.2%) Deere & Company 3,200 148,448 Insurance (4.5%) American International Group, Inc. 19,900 1,244,745 St. Paul Companies, Inc. (The) (b) 23,000 754,400 XL Capital Ltd. - Class A 14,100 1,073,715 Insurance Agents, Brokers & Service (0.6%) Hartford Financial Services Group, Inc. (The) 9,900 391,050 Lumber & Other Building Materials (1.2%) Home Depot, Inc. (The) 27,600 797,088 Motion Pictures (1.6%) News Corporation Limited (The) - ADR 56,900 1,124,913 Oil & Gas Extraction (4.9%) Burlington Resources Inc. 25,600 1,054,720 ConocoPhillips 13,999 678,952 Total Fina Elf SA - ADR (b) 13,200 897,864 Transocean Inc. 33,700 740,726 Paper & Allied Products (2.2%) International Paper Company 24,800 866,264 Kimberly-Clark Corporation 12,600 648,900 Petroleum Refining (3.2%) ChevronTexaco Corporation 12,600 852,138 Marathon Oil Corporation 21,500 449,350 Royal Dutch Petroleum Company - NY Registered Shares 21,100 902,658 Pharmaceuticals (5.1%) Lilly (Eli) and Company 8,500 471,750 Pfizer Inc. 29,500 937,215 Schering-Plough Corporation 60,100 1,283,135 Wyeth 23,800 797,300 Primary Metal Industries (1.4%) Alcoa Inc. 42,300 933,138 Restaurants (1.2%) McDonald's Corporation 43,700 791,407 Savings Institutions (1.4%) Washington Mutual, Inc. 26,600 951,216 Security & Commodity Brokers (7.3%) American Express Company 31,700 1,152,929 Goldman Sachs Group, Inc. (The) 12,700 909,320 Merrill Lynch & Co., Inc. 28,300 1,073,985 Morgan Stanley Dean Witter & Co. 26,600 1,035,272 Waddell & Reed Financial, Inc. - Class A 52,800 924,000 Telecommunications (7.0%) AT&T Corp. 84,200 1,097,968 AT&T Wireless Services, Inc. (a)(b) 209,300 1,437,891 SBC Communications Inc. 28,900 741,574 Verizon Communications, Inc. 40,100 1,514,176 Tobacco Products (2.5%) Philip Morris Companies Inc. 26,000 1,059,500 R.J. Reynolds Tobacco Holdings, Inc. 15,400 624,470 U.S. Government Agencies (1.2%) Freddie Mac 13,100 806,698
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX SALOMON INVESTORS VALUE 131 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Variety Stores (2.1%) Costco Wholesale Corporation (a) 23,300 $ 790,569 Target Corporation 21,500 647,580 -------------- TOTAL COMMON STOCKS (COST: $73,689,255) 62,145,065 -------------- TOTAL INVESTMENT SECURITIES (COST: $74,561,710) $ 62,676,475 ============== SUMMARY: Investments, at market value 91.5% $ 62,676,475 Other assets in excess of liabilities 8.5% 5,842,264 ------------- -------------- Net assets 100.0% $ 68,518,739 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $4,420,156. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 132 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE HEALTH SCIENCES
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (96.5%) Chemicals & Allied Products (3.3%) Pharmacia Corporation 3,850 $ 165,550 Drug Stores & Proprietary Stores (2.4%) Omnicare, Inc. 5,600 121,688 Health Services (7.6%) DaVita Inc. (a) 850 20,375 HCA Inc. 2,390 103,941 Laboratory Corporation of America Holdings (a) 2,500 60,250 Tenet Healthcare Corporation (a) 4,300 123,625 Triad Hospitals, Inc. (a) 2,000 73,000 Instruments & Related Products (0.6%) Waters Corporation (a) 1,200 30,216 Insurance (11.7%) Anthem, Inc. (a) 3,800 239,400 UnitedHealth Group Incorporated 3,150 286,492 WellPoint Health Networks Inc. (a) 850 63,929 Medical Instruments & Supplies (5.0%) Advanced Neuromodulation Systems, Inc. (a) 2,600 79,274 Aspect Medical Systems, Inc. (a) 3,300 13,200 Baxter International Inc. 320 8,006 Biomet, Incorporated 170 5,008 Boston Scientific Corporation (a) 2,600 97,838 Fischer Imaging Corporation (a) 2,680 16,294 St. Jude Medical, Inc. (a) 850 30,269 Pharmaceuticals (63.8%) Abbott Laboratories 2,650 110,956 Abgenix, Inc. (a) 3,650 24,820 Actelion Ltd. (a) 200 7,656 Alexion Pharmaceuticals, Inc. 70 713 Alkermes, Inc. (a) 6,200 57,164 Allergan, Inc. 1,400 76,230 AmerisourceBergen Corporation 900 64,035 Amgen Inc. (a) 1,750 81,480 Amylin Pharmaceuticals, Inc. (a) 1,600 27,808 Biogen, Inc. (a) 400 14,676 Cardinal Health, Inc. 900 62,289 Cephalon, Inc. (a) 4,870 244,669 Cubist Pharmaceuticals, Inc. (a) 2,000 12,920 CV Therapeutics, Inc. (a) 1,600 38,400 Durect Corporation (a) 1,500 4,860 EPIX Medical, Inc. (a) 2,000 12,700 Esperion Therapeutics, Inc. (a) 1,130 6,656 Forest Laboratories, Inc. (a) 1,450 142,085 Fujisawa Pharmaceutical Company Limited 600 11,660 Genentech, Inc. (a) 1,410 48,067 Gilead Sciences, Inc. (a) 6,400 222,336 Guilford Pharmaceuticals Inc. (a) 1,290 6,476 Human Genome Sciences, Inc. (a) 2,080 20,322 IDEC Pharmaceuticals Corporation (a) 1,860 85,597 ImClone Systems Incorporated (a) 2,100 15,038 Inkine Pharmaceutical Company, Inc. (a) 83 103 Invitrogen Corporation (a) 500 13,910 Isis Pharmaceuticals, Inc. (a) 1,000 9,760 Johnson & Johnson 1,400 82,250 Ligand Pharmaceuticals Incorporated (a) 555 3,652 Lilly (Eli) and Company 1,450 80,475 McKesson HBOC, Inc. 600 17,886 Medicines Company (The) (a) 4,430 64,324 Medimmune, Inc. (a) 7,600 194,179 Millennium Pharmaceuticals, Inc. (a) 1,500 11,160 NeoRx Corporation (a) 1,400 911 Neurocrine Biosciences, Inc. (a) 2,700 121,230 Noven Pharmaceuticals, Inc. (a) 850 10,889 NPS Pharmaceuticals, Inc. (a) 4,600 119,508 Onyx Pharmaceuticals, Inc. (a) 100 377 OSI Pharmaceuticals, Inc. (a) 1,010 17,493 Pfizer Inc. 6,500 206,505 Progenics Pharmaceuticals, Inc. (a) 400 2,860 Protein Design Labs, Inc. (a) 1,000 8,300
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Pharmaceuticals (continued) Regeneron Pharmaceuticals, Inc. (a) 1,100 $ 16,643 Salix Pharmaceuticals, Ltd. (a) 2,100 17,220 Sanofi-Synthelabo 1,000 61,170 Schering-Plough Corporation 1,100 23,485 Scios Inc. (a) 1,920 55,411 Telik, Inc. (a) 1,530 22,568 Teva Pharmaceutical Industries Ltd. - ADR 850 65,816 Transkaryotic Therapies, Inc. (a) 1,520 17,693 Triangle Pharmaceuticals, Inc. (a) 2,880 9,504 Trimeris, Inc. (a) 5,200 275,080 Tularik, Inc. (a) 660 4,798 Versicor, Inc. (a) 3,380 37,180 Vertex Pharmaceuticals Incorporated (a) 2,200 43,142 ViroPharma Incorporated (a) 233 207 Women First HealthCare, Inc. (a) 455 2,498 Wyeth 6,100 204,349 XOMA Ltd. (a) 63 364 Research & Testing Services (1.2%) Deltagen, Inc. (a) 4,000 4,280 Exelixis, Inc. (a) 6,420 31,715 Symyx Technologies, Inc. (a) 2,300 26,473 Wholesale Trade Durable Goods (0.9%) Patterson Dental Company (a) 900 46,359 -------------- TOTAL COMMON STOCKS (COST: $5,068,751) 4,869,695 -------------- - ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (1.8%) U.S. Treasury Bill 1.54%, due 01/02/2003 $ 80,000 $ 79,789 1.55%, due 01/02/2003 10,000 9,973 -------------- TOTAL SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (COST: $89,762) 89,762 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ PURCHASED OPTIONS (0.0%) Alexion Pharmaceuticals, Inc. Call Strike $10.00 Expires 12/21/2002 3 $ 570 -------------- TOTAL PURCHASED OPTIONS (COST: $597) 570 -------------- TOTAL INVESTMENT SECURITIES (COST: $5,159,110) $ 4,960,027 ============== WRITTEN OPTIONS (-0.8%) Covered Call Options (-0.4%) Allergan, Inc. Call Strike $60.00 Expires 12/21/2002 3 $ (398) AmerisourceBergen Corporation Call Strike $80.00 Expires 11/16/2002 3 (53) Amgen Inc. Call Strike $45.00 Expires 01/18/2003 6 (3,150) Anthem, Inc. Call Strike $70.00 Expires 11/16/2002 3 (353) Baxter International Inc. Call Strike $40.00 Expires 11/16/2002 2 (10) Boston Scientific Corporation Call Strike $40.00 Expires 12/21/2002 7 (1,050)
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE HEALTH SCIENCES 133 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ Covered Call Options (continued) Cephalon, Inc. Call Strike $50.00 Expires 11/16/2002 14 $ (3,466) Forest Laboratories, Inc. Call Strike $85.00 Expires 11/16/2002 4 (5,360) Genentech, Inc. Call Strike $40.00 Expires 12/21/2002 6 (570) Gilead Sciences, Inc. Call Strike $40.00 Expires 12/21/2002 6 (660) IDEC Pharmaceuticals Corporation Call Strike $45.00 Expires 11/16/2002 15 (3,858) Invitrogen Corporation Call Strike $32.50 Expires 12/21/2002 4 (390) Johnson & Johnson Call Strike $65.00 Expires 01/18/2003 3 (210) Laboratory Corporation of America Holdings Call Strike $37.50 Expires 11/16/2002 4 (40) Lilly (Eli) and Company Call Strike $70.00 Expires 01/18/2003 1 (18) Medimmune, Inc. Call Strike $25.00 Expires 11/16/2002 6 (855) Medimmune, Inc. Call Strike $30.00 Expires 12/21/2002 6 (525) NPS Pharmaceuticals, Inc. Call Strike $30.00 Expires 11/16/2002 9 (180) Trimeris, Inc. Call Strike $55.00 Expires 11/16/2002 6 (675) UnitedHealth Group Incorporated Call Strike $100.00 Expires 11/16/2002 6 (255) Waters Corporation Call Strike $30.00 Expires 11/16/2002 3 (30) WellPoint Health Networks Inc. Call Strike $90.00 Expires 01/18/2003 2 (305) Wyeth Call Strike $35.00 Expires 11/16/2002 12 (660)
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ Covered Call Options (continued) Wyeth Call Strike $40.00 Expires 01/18/2003 25 $ (1,188) Put Options (-0.3%) Forest Laboratories, Inc. Put Strike $90.00 Expires 11/16/2002 3 (293) HCA Inc. Put Strike $50.00 Expires 01/3/2003 1 (123) Medimmune, Inc. Put Strike $17.50 Expires 11/16/2002 2 (50) Tenet Healthcare Corporation Put Strike $50.00 Expires 02/22/2003 3 (6,570) Tenet Healthcare Corporation Put Strike $55.00 Expires 01/18/2003 3 (8,070) -------------- TOTAL WRITTEN OPTIONS (PREMIUM: $26,708) $ (39,365) ============== SUMMARY: Investments, at market value 98.3% $ 4,960,027 Written Options -0.8% (39,365) Other assets in excess of liabilities 2.5% 125,992 ------------- -------------- Net assets 100.0% $ 5,046,654 ============= ============== INVESTMENTS BY COUNTRY: - ------------------------------------------------------------------------------------------ MARKET PERCENTAGE VALUE - ------------------------------------------------------------------------------------------ France 1.2% $ 61,170 Japan 0.2% 11,660 Switzerland 0.2% 7,656 United States 98.4% 4,879,541 ------------- -------------- Investments, at market value 100.0% $ 4,960,027 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. DEFINITIONS: ADR American Depositary Receipt 134 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE SMALL CAP
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (99.7%) Aerospace (0.2%) Triumph Group, Inc. (a) 1,800 $ 44,316 Air Transportation (1.5%) Atlantic Coast Airlines Holdings, Inc. (a) 7,300 96,360 Frontier Airlines, Inc. (a) (b) 13,700 81,515 SkyWest, Inc. 6,600 100,129 Amusement & Recreation Services (1.5%) Argosy Gaming Company (a) 400 8,004 International Speedway Corporation - Class A 1,700 66,198 Mandalay Resort Group (a) 2,300 65,067 Six Flags, Inc. (a) 2,300 10,511 Westwood One, Inc. 3,400 123,420 Apparel & Accessory Stores (1.1%) Abercrombie & Fitch Co. - Class A (a) 4,200 74,844 AnnTaylor, Inc. (a) 1,650 38,660 Pacific Sunwear of California, Inc. (a) 1,800 42,066 Ross Stores, Inc. 900 37,665 Talbots, Inc. (The) 600 16,632 Apparel Products (1.1%) Too, Inc. (a) 8,100 204,929 Auto Repair, Services & Parking (0.3%) Dollar Thrifty Automotive Group, Inc. (a) 2,500 46,450 Automotive (0.4%) Gentex Corporation (a) (b) 2,700 79,596 Automotive Dealers & Service Stations (1.8%) Casey's General Stores, Inc. 4,100 48,011 Copart, Inc. (a) 5,900 62,953 Group 1 Automotive, Inc. (a) 3,500 73,990 O'Reilly Automotive, Inc. (a) 4,900 133,623 Sonic Automotive, Inc. (a) 1,100 17,325 Beverages (0.1%) Boston Beer Company, Inc. (The) (a) 400 6,272 Constellation Brands, Inc. (a) 400 10,132 Business Services (4.4%) BISYS Group, Inc. (The) (a) 5,400 96,660 Catalina Marketing Corporation (a) 2,000 38,700 ChoicePoint Inc. (a) 4,200 159,012 Digital Insight Corporation (a) (b) 8,800 91,696 Fair, Isaac and Company, Incorporated (b) 4,470 171,961 Getty Images, Inc. (a) (b) 2,300 65,918 On Assignment, Inc. (a) 4,600 39,105 Rent-A-Center, Inc. (a) 1,300 57,655 Teletech Holdings, Inc. (a) 2,000 11,920 Valassis Communications, Inc. (a) 1,100 28,380 Websense, Inc. (a) 3,200 64,608 Chemicals & Allied Products (0.7%) ATMI, Inc. (a) 5,700 104,823 Cabot Corporation 800 18,944 Commercial Banks (4.1%) Boston Private Financial Holdings, Inc. 4,000 73,640 Commerce Bancorp, Inc. (b) 3,150 144,617 Community First Bankshares, Inc. 2,900 79,489 East West Bancorp, Inc. 1,500 51,750 National Commerce Financial Corporation 2,500 61,200 Silicon Valley Bancshares (a) 1,700 31,943 Southwest Bancorporation of Texas, Inc. (a) 4,200 118,650 Sterling Bancshares, Inc. 8,300 101,841 UCBH Holdings, Inc. 2,400 100,536 Communication (0.5%) Global Payments Inc. 2,380 67,235 Insight Communications Company, Inc. (a) 3,100 30,194 Communications Equipment (1.9%) Anaren Microwave, Inc. (a) 3,900 35,841 Inter-Tel, Incorporated (b) 3,800 102,714 L-3 Communications Holdings, Inc. (a) (b) 1,300 61,100 Plantronics, Inc. (a) 6,400 95,872
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Communications Equipment (continued) Powerwave Technologies, Inc. (a) 7,700 $ 35,497 Proxim Corporation - Class A (a) 27,360 23,256 SeaChange International, Inc. (a) 600 3,468 Computer & Data Processing Services (9.3%) Activision, Inc. (a) (b) 2,400 49,200 Actuate Corporation (a) 7,700 14,014 Affiliated Computer Services, Inc. - Class A (a) 2,500 115,125 BARRA, Inc. (a) 4,250 152,533 Borland Software Corporation (a) 8,500 114,155 Cerner Corporation (a) (b) 1,500 53,415 Computer Programs and Systems, Inc. (a) 1,900 42,465 Concord Communications, Inc. (a) 3,500 25,585 EarthLink, Inc. (a) 14,400 87,984 FactSet Research Systems Inc. (b) 5,800 158,630 Henry (Jack) & Associates, Inc. 3,900 40,088 Hyperion Solutions Corporation (a) 2,400 64,800 Informatica Corporation (a) 6,000 31,200 InterCept, Inc. (a) 2,700 42,687 Liberate Technologies (a) 6,000 7,920 Macromedia, Inc. (a) 1,100 12,331 MatrixOne, Inc. (a) 5,800 15,254 Mercury Interactive Corporation (a) 400 10,548 MicroStrategy Incorporated - Class A (a) 8 98 MicroStrategy Incorporated - warrants 3,289 164 MTC Technologies, Inc. (a) 4,500 110,205 National Instruments Corporation (a) (b) 3,800 109,022 Netegrity, Inc. (a) 6,350 12,192 Network Associates, Inc. (a) (b) 1,700 27,013 Packeteer, Inc. (a) 7,900 41,870 Precise Software Solutions Ltd. (a) 3,700 42,920 Radiant Systems, Inc. (a) 3,550 38,411 Rational Software Corporation (a) 6,700 44,354 SERENA Software, Inc. (a) 7,900 126,084 SmartForce PLC - ADR (a) 3,100 12,431 SRA International, Inc. - Class A (a) 400 9,720 Symantec Corporation (a) 1,500 60,000 Titan Corporation (The) (a) (b) 6,500 83,785 Computer & Office Equipment (1.2%) Avocent Corporation (a) (b) 3,200 64,000 Concurrent Computer Corporation (a) 6,000 11,160 Polycom, Inc. (a) 9,806 96,589 SanDisk Corporation (a) (b) 2,700 53,379 Construction (1.1%) D.R. Horton, Inc. 1,727 33,279 Insituform Technologies, Inc. - Class A (a) (b) 5,400 85,914 KB Home (b) 400 18,880 Toll Brothers, Inc. (a) 3,400 69,632 Drug Stores & Proprietary Stores (0.8%) Duane Reade Inc. (a) 1,700 32,708 Omnicare, Inc. 5,100 110,823 Educational Services (2.3%) Career Education Corporation (a) 1,300 52,143 Corinthian Colleges, Inc. (a) 2,700 102,330 DeVRY Inc. (a) 6,900 97,980 Education Management Corporation (a) 2,100 77,070 University of Phoenix Online (a) 3,066 95,353 Electronic & Other Electric Equipment (0.4%) Harman International Industries, Incorporated 1,300 72,800 Zomax Incorporated (a) 1,300 5,330 Electronic Components & Accessories (4.8%) Aeroflex Incorporated (a) 11,600 67,164 CoorsTek, Inc. (a) 800 11,920 Exar Corporation (a) 2,900 36,540 Integrated Silicon Solution, Inc. (a) 6,200 17,484 Intersil Corporation - Class A (a) 6,796 115,464 KEMET Corporation (a) 2,900 25,433 Kopin Corporation (a) 4,500 16,695 Lattice Semiconductor Corporation (a) 5,000 33,850 Mercury Computer Systems, Inc. (a) 3,500 105,529
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE SMALL CAP 135 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Electronic Components & Accessories (continued) Micrel, Incorporated (a) 4,200 $ 34,692 Microchip Technology Incorporated 975 23,790 Oak Technology, Inc. (a) 34,700 57,602 Pericom Semiconductor Corporation (a) 5,100 43,855 Plexus Corp. (a) (b) 7,800 83,694 QuickLogic Corporation (a) 600 972 Semtech Corporation (a) 5,000 70,650 Silicon Storage Technology, Inc. (a) 6,800 30,328 Skyworks Solutions, Inc. (a) (b) 5,100 36,210 Technitrol, Inc. 4,300 62,909 TriQuint Semiconductor, Inc. (a) 6,126 30,936 Fabricated Metal Products (0.5%) Shaw Group Inc. (The) (a) (b) 3,100 46,376 Simpson Manufacturing Co., Inc. (a) 1,200 42,360 Food & Kindred Products (0.5%) American Italian Pasta Company - Class A (a) 400 13,780 Horizon Organic Holding Corporation (a) 2,500 39,653 Tootsie Roll Industries Incorporated 1,500 47,310 Food Stores (0.6%) Panera Bread Company (a) (b) 1,100 35,750 Whole Foods Market, Inc. (a) 1,600 74,646 Furniture & Fixtures (0.5%) Ethan Allen Interiors Inc. 800 25,640 La-Z-Boy Incorporated 2,700 64,260 Furniture & Home Furnishings Stores (1.2%) Cost Plus, Inc. (a) (b) 3,800 109,824 Pier 1 Imports, Inc. 2,700 50,895 Williams-Sonoma, Inc. (a) 2,600 61,880 Health Services (5.2%) Accredo Health, Incorporated (a) (b) 3,900 180,492 AmeriPath, Inc. (a) (b) 4,000 59,920 AMN Healthcare Services, Inc. (a) 600 8,676 AmSurg Corp. (a) 1,800 50,148 Caremark Rx, Inc. (a) 4,300 76,110 Community Health Systems, Inc. (a) (b) 2,300 54,050 DaVita Inc. (a) 3,100 74,307 Hooper Holmes, Inc. 4,700 31,255 LifePoint Hospitals, Inc. (a) 3,600 112,860 Manor Care, Inc. (a) 4,000 79,080 Renal Care Group, Inc. (a) 1,400 44,310 Triad Hospitals, Inc. (a) 2,100 76,650 Unilab Corporation (a) 3,100 66,185 United Surgical Partners International, Inc.(a) (b) 3,100 61,566 Industrial Machinery & Equipment (2.0%) Cooper Cameron Corporation (a) 500 23,310 Cymer, Inc. (a) (b) 4,100 102,992 FMC Technologies, Inc. (a) 1,000 18,500 National-Oilwell, Inc. (a) 2,600 54,210 Oil States International, Inc. (a) 400 5,180 SureBeam Corporation - Class A (a) (b) 2,340 10,179 Zebra Technologies Corporation - Class A (a) 2,500 153,800 Instruments & Related Products (4.0%) August Technology Corporation (a) 4,600 27,876 Cognex Corporation (a) 3,500 66,360 Coherent, Inc. (a) 2,300 40,641 Cohu, Inc. 3,400 53,652 Cytyc Corporation (a) (b) 9,100 95,186 Dionex Corporation (a) 2,850 87,809 FLIR Systems, Inc. (a) 400 18,932 Fossil, Inc. (a) 2,287 44,848 Mettler-Toledo International Inc. (a) 2,700 80,865 MKS Instruments, Inc. (a) 3,643 47,833 Newport Corporation (a) 1,200 13,153 Rudolph Technologies, Inc. (a) 1,800 30,744 SBS Technologies, Inc. (a) 3,100 25,730 Varian, Inc. (a) 4,300 126,463
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Insurance (3.8%) Coventry Health Care, Inc. (a) 1,900 $ 63,574 First Health Group Corp. (a) 6,300 163,674 Max Re Capital Ltd. 7,100 73,556 PMI Group, Inc. (The) 1,100 32,780 Radian Group, Inc. 518 18,270 RenaissanceRe Holdings Ltd. 1,500 61,500 StanCorp Financial Group, Inc. 3,100 167,400 Triad Guaranty Inc. (a) 3,900 142,974 Insurance Agents, Brokers & Service (1.0%) AdvancePCS (a) 2,900 72,790 Brown & Brown, Inc. 2,300 69,920 Gallagher (Arthur J.) & Co. 2,000 53,640 Leather & Leather Products (0.3%) Skechers U.S.A., Inc. - Class A (a) 1,200 11,880 Timberland Company (The) - Class A (a) (b) 1,200 38,136 Management Services (1.5%) BearingPoint, Inc. (a) 2,300 17,940 Corporate Executive Board Company (The) (a) 6,300 209,096 Exult, Inc. (a) 18,400 52,440 Manufacturing Industries (0.6%) JAKKS Pacific, Inc. (a) (b) 7,900 104,596 Medical Instruments & Supplies (3.0%) Apogent Technologies, Inc. (a) 3,000 54,540 Conceptus, Inc. (a) 1,700 23,681 Cyberonics, Inc. (a) 800 12,800 DENTSPLY International Inc. 2,550 94,146 ICU Medical, Inc. (a) (b) 3,700 143,375 INAMED Corporation (a) 1,400 37,324 Mentor Corporation 600 22,740 Respironics, Inc. (a) 2,900 92,626 STERIS Corporation (a) 3,100 82,243 Mortgage Bankers & Brokers (0.4%) Doral Financial Corporation 3,150 82,719 Motion Pictures (0.9%) CNET Networks, Inc. (a) 9,800 19,404 Macrovision Corporation (a) 11,600 149,640 Oil & Gas Extraction (5.2%) Brown (Tom), Inc. (a) 3,900 93,210 Cabot Oil & Gas Corporation - Class A 2,600 56,836 Cal Dive International, Inc. (a) 2,900 63,713 Core Laboratories N.V. (a) 3,500 33,005 Global Industries, Ltd. (a) 9,800 39,200 Grey Wolf, Inc. (a) 18,100 72,400 Key Energy Services, Inc. (a) 1,500 13,395 Patterson-UTI Energy, Inc. (a) (b) 5,800 167,736 Pride International, Inc. (a) 5,600 77,728 Spinnaker Exploration Company (a) 3,100 59,675 Stone Energy Corporation (a) 3,200 102,912 Unit Corporation (a) 4,800 92,640 XTO Energy, Inc. 4,700 113,035 Personal Services (0.2%) G&K Services, Inc. - Class A 1,400 44,969 Pharmaceuticals (9.2%) Abgenix, Inc. (a) (b) 4,200 28,560 Albany Molecular Research, Inc. (a) 3,100 47,864 Alkermes, Inc. (a) 3,800 35,036 Biovail Corporation (a) 2,400 75,960 Celgene Corporation (a) 5,900 130,685 Cephalon, Inc. (a) (b) 2,024 101,686 Charles River Laboratories, Inc. (a) 400 14,700 D & K Health Resources, Inc. (b) 2,200 20,262 Enzon, Inc. (a) (b) 2,700 52,380 Gilead Sciences, Inc. (a) 1,500 52,110 Human Genome Sciences, Inc. (a) 2,100 20,517 ICOS Corporation (a) (b) 3,700 91,427 IDEXX Laboratories, Inc. (a) 700 24,150 Invitrogen Corporation (a) 2,400 66,768 King Pharmaceuticals, Inc. (a) 1,349 20,707
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE SMALL CAP 136 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Pharmaceuticals (continued) K-V Pharmaceutical Company - Class A (a) 2,900 $ 49,300 Medarex, Inc. (a) 3,300 13,101 Medicis Pharmaceutical Corporation - Class A (a) (b) 3,000 137,700 Neurocrine Biosciences, Inc. (a) (b) 2,600 116,740 Noven Pharmaceuticals, Inc. (a) 7,800 99,918 NPS Pharmaceuticals, Inc. (a) 2,500 64,950 OSI Pharmaceuticals, Inc. (a) (b) 3,200 55,424 Protein Design Labs, Inc. (a) 4,500 37,350 Scios Inc. (a) (b) 400 11,544 Serologicals Corporation (a) 4,200 40,446 SICOR Inc. (a) 4,000 59,560 Taro Pharmaceutical Industries Ltd. (a) (b) 1,300 45,175 Techne Corporation (a) (b) 3,100 102,300 Triangle Pharmaceuticals, Inc. (a) 7,000 23,100 Trimeris, Inc. (a) (b) 1,300 68,770 Vertex Pharmaceuticals Incorporated (a) 1,294 25,375 Primary Metal Industries (0.7%) Lone Star Technologies, Inc. (a) 2,300 30,015 Maverick Tube Corporation (a) 4,900 62,475 Steel Dynamics, Inc. (a) 3,700 48,211 Printing & Publishing (0.8%) Scholastic Corporation (a) (b) 3,600 158,940 Radio & Television Broadcasting (2.0%) Cox Radio, Inc. - Class A (a) 3,900 92,586 Emmis Communications Corporation - Class A (a) 2,300 50,186 Entercom Communications Corp. (a) (b) 500 24,610 Hispanic Broadcasting Corporation (a) 600 12,900 Radio One, Inc. - Class D (a) (b) 7,700 128,436 Regent Communications, Inc. (a) 5,400 32,670 Spanish Broadcasting System, Inc. (a) 5,400 35,802 Radio, Television & Computer Stores (0.3%) Tweeter Home Entertainment Group, Inc. (a) 6,400 49,990 Ultimate Electronics, Inc. (a) 1,200 15,636 Research & Testing Services (1.3%) Deltagen, Inc. (a) 7,400 7,918 Forrester Research, Inc. (a) 6,900 95,220 META Group, Inc. (a) 7,600 19,760 Pharmaceutical Product Development, Inc. (a) 2,000 54,800 Symyx Technologies, Inc. (a) 5,600 64,456 Restaurants (2.7%) AFC Enterprises, Inc. (a) 600 10,962 CEC Entertainment Inc. (a) 4,100 113,980 Cheesecake Factory Incorporated (The) (a) 1,950 66,105 P.F. Chang's China Bistro, Inc. (a) (b) 3,500 120,750 RARE Hospitality International, Inc. (a) 3,500 93,380 Ruby Tuesday, Inc. 3,400 59,330 Sonic Corp. (a) 1,850 43,050 Retail Trade (0.6%) A.C. Moore Arts & Crafts, Inc. (a) 1,500 23,610 Insight Enterprises, Inc. (a) 6,400 48,896 Michaels Stores, Inc. (a) 1,100 49,456 Rubber & Misc. Plastic Products (0.4%) Entegris, Inc. (a) 7,400 63,714 VANS, INC. (a) 4,300 19,866 Savings Institutions (0.2%) IndyMac Bancorp, Inc. (a) 2,300 42,872
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Security & Commodity Brokers (3.1%) Affiliated Managers Group, Inc. (a) 2,400 $ 124,608 Eaton Vance Corp. 2,400 68,904 Investment Technology Group, Inc. (a) (b) 3,200 102,080 Investors Financial Services Corp. 4,100 125,747 Legg Mason, Inc. 2,100 97,566 Waddell & Reed Financial, Inc. - Class A 4,250 74,375 Social Services (0.5%) Bright Horizons Family Solutions, Inc. (a) 3,200 86,560 Stone, Clay & Glass Products (0.6%) Cabot Microelectronics Corporation (a) (b) 2,573 116,788 Textile Mill Products (0.2%) Mohawk Industries, Inc. (a) 700 37,485 Transportation & Public Utilities (1.7%) C.H. Robinson Worldwide, Inc. 800 23,656 Expeditors International of Washington, Inc. 2,300 72,473 Forward Air Corporation (a) 6,200 107,446 UTI Worldwide, Inc. 5,200 121,264 Trucking & Warehousing (1.4%) Covenant Transport, Inc. - Class A (a) 3,900 66,963 Iron Mountain Incorporated (a) (b) 6,850 193,239 Variety Stores (0.4%) Dollar Tree Stores, Inc. (a) 1,700 44,693 Family Dollar Stores, Inc. 1,200 36,948 Wholesale Trade Durable Goods (1.9%) Patterson Dental Company (a) (b) 3,100 159,681 SCP Pool Corporation (a) (b) 7,225 205,912 Wholesale Trade Nondurable Goods (0.8%) Performance Food Group Company (a) (b) 3,400 126,446 United Natural Foods, Inc. (a) 1,100 26,730 -------------- TOTAL COMMON STOCKS (COST: $23,416,785) 18,807,998 -------------- TOTAL INVESTMENT SECURITIES (COST: $23,416,785) $ 18,807,998 ============== SUMMARY: Investments, at market value 99.7% $ 18,807,998 Other assets in excess of liabilities 0.3% 60,560 ------------- -------------- Net assets 100.0% $ 18,868,558 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $4,646,902. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 137 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE TAX-EFFICIENT GROWTH
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (99.5%) Aerospace (0.4%) Boeing Company (The) 4,900 $ 145,775 Amusement & Recreation Services (1.3%) Disney (Walt) Company (The) 30,800 514,360 Apparel Products (0.5%) Cintas Corporation 3,700 174,899 Beverages (2.7%) Anheuser-Busch Companies, Inc. 2,700 142,452 Coca-Cola Company (The) 10,700 497,336 PepsiCo, Inc. 8,870 391,167 Business Services (8.8%) Clear Channel Communications, Inc. (a) 24,400 904,020 eBay Inc. (a) 900 56,934 Equifax Inc. 5,500 129,580 First Data Corporation 16,300 569,522 Interpublic Group of Companies, Inc. (The) 12,000 143,640 Moody's Corporation 2,300 108,330 Omnicom Group, Inc. (b) 14,500 835,635 Robert Half International Inc. (a) 9,000 150,300 TMP Worldwide Inc. (a) 11,000 170,280 WPP Group PLC - ADR (b) 9,100 308,945 Chemicals & Allied Products (4.0%) Avon Products, Inc. 3,800 184,262 Colgate-Palmolive Company 2,500 137,450 Ecolab Inc. 3,000 144,750 Pharmacia Corporation 7,842 337,206 Procter & Gamble Company (The) 6,700 592,615 Valspar Corporation (The) 2,800 116,956 Commercial Banks (9.1%) Bank of New York Company, Inc. (The) 17,800 462,800 Citigroup Inc. 29,059 1,073,730 Concord EFS, Inc. (a) 20,700 295,596 Mellon Financial Corporation 11,000 311,190 Northern Trust Corporation 13,100 456,142 State Street Corporation 10,100 417,837 Wells Fargo & Company 9,100 459,277 Communication (3.2%) Certegy Inc. (a) 3,900 81,900 Viacom, Inc. - Class B (a) 25,500 1,137,555 Communications Equipment (0.4%) Nokia Oyj - ADR 8,600 142,932 Computer & Data Processing Services (7.0%) Automatic Data Processing, Inc. 7,100 301,963 BMC Software, Inc. (a) 7,900 125,926 Computer Associates International, Inc. 12,300 182,778 Intuit Inc. (a) 4,300 223,256 Microsoft Corporation (a) 28,300 1,513,200 Oracle Corporation (a) 31,900 326,975 Computer & Office Equipment (3.7%) Cisco Systems, Inc. (a) 65,900 736,762 Dell Computer Corporation (a) 15,800 452,038 EMC Corporation (a) 23,700 121,107 Symbol Technologies, Inc. 14,500 125,425 Drug Stores & Proprietary Stores (1.0%) CVS Corporation 7,300 202,429 Walgreen Co. 5,900 199,125 Educational Services (0.8%) Apollo Group, Inc. - Class A (a) 4,950 205,425 DeVRY Inc. (a) 6,200 88,040 Electronic & Other Electric Equipment (3.0%) General Electric Company 45,150 1,140,038 Electronic Components & Accessories (8.9%) Altera Corporation (a) 31,700 371,524 Analog Devices, Inc. (a) 16,600 444,880 Broadcom Corporation - Class A (a) (b) 2,800 33,544 Intel Corporation 30,600 529,380
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Electronic Components & Accessories (continued) Linear Technology Corporation 21,500 $ 594,260 Maxim Integrated Products 18,300 582,672 Molex Incorporated - Class A 5,000 116,150 Texas Instruments Incorporated 21,600 342,576 Xilinx, Inc. (a) 20,300 385,497 Fabricated Metal Products (0.8%) Gillette Company (The) 10,500 313,740 Food & Kindred Products (0.9%) General Mills, Inc. 3,700 152,884 Wrigley (Wm.) Jr. Company 3,500 184,695 Furniture & Home Furnishings Stores (0.6%) Bed Bath & Beyond Inc. (a) 3,800 134,748 Williams-Sonoma, Inc. (a) 4,600 109,480 Industrial Machinery & Equipment (0.9%) Applied Materials, Inc. (a) 15,900 238,977 Illinois Tool Works Inc. 1,800 110,520 Insurance (3.6%) Ambac Financial Group, Inc. 3,000 185,400 American International Group, Inc. 13,363 835,856 UnitedHealth Group Incorporated 3,800 345,610 Insurance Agents, Brokers & Service (1.6%) Marsh & McLennan Companies, Inc. 13,100 611,901 Lumber & Other Building Materials (1.6%) Home Depot, Inc. (The) 20,700 597,816 Management Services (1.1%) Paychex, Inc. 14,400 415,008 Medical Instruments & Supplies (2.0%) Baxter International Inc. 4,000 100,080 Guidant Corporation (a) 9,900 292,743 Medtronic, Inc. (b) 8,500 380,800 Motion Pictures (1.2%) AOL Time Warner Inc. (a) 31,100 458,725 Paper & Allied Products (0.4%) Kimberly-Clark Corporation 2,800 144,200 Pharmaceuticals (15.6%) Abbott Laboratories 11,700 489,879 Amgen Inc. (a) 6,000 279,360 AstraZeneca PLC - ADR 4,600 172,730 Cardinal Health, Inc. 4,000 276,840 Glaxo Wellcome PLC - ADR 16,300 614,347 Johnson & Johnson 14,700 863,625 Lilly (Eli) and Company 6,200 344,100 Merck & Co., Inc. 13,300 721,392 Pfizer Inc. 41,187 1,308,511 Schering-Plough Corporation 15,900 339,465 Wyeth 17,900 599,650 Printing & Publishing (0.8%) McGraw-Hill Companies, Inc. (The) 4,700 303,150 Radio & Television Broadcasting (0.6%) Univision Communications Inc. - Class A (a) (b) 6,000 155,460 USA Networks, Inc. (a) 2,300 58,167 Restaurants (0.2%) Starbucks Corporation (a) 4,000 95,000 Retail Trade (0.6%) Tiffany & Co. 8,100 212,058 Rubber & Misc. Plastic Products (0.2%) NIKE, Inc. - Class B 1,800 84,942 Security & Commodity Brokers (2.2%) American Express Company 6,000 218,220 Franklin Resources, Inc. 8,100 267,219 Schwab (Charles) Corporation (The) 40,900 375,462 Telecommunications (0.4%) Vodafone Group PLC - ADR (b) 9,500 151,240
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX T. ROWE PRICE TAX-EFFICIENT GROWTH 138 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Transportation & Public Utilities (0.5%) Expeditors International of Washington, Inc. 6,400 $ 201,664 U.S. Government Agencies (4.3%) Fannie Mae 11,900 795,634 Freddie Mac 13,600 837,488 Variety Stores (3.9%) Dollar General Corporation 16,300 227,548 Family Dollar Stores, Inc. 6,800 209,372 Wal-Mart Stores, Inc. 19,900 1,065,645 Wholesale Trade Nondurable Goods (0.7%) SYSCO Corporation 9,000 285,120 -------------- TOTAL COMMON STOCKS (COST: $43,175,645) 38,106,814 -------------- TOTAL INVESTMENT SECURITIES (COST: $43,175,645) $ 38,106,814 ============== SUMMARY: Investments, at market value 99.5% $ 38,106,814 Other assets in excess of liabilities 0.5% 181,302 ------------- -------------- Net assets 100.0% $ 38,288,116 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $1,415,257. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. DEFINITIONS: ADR American Depositary Receipt 139 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX TRANSAMERICA CONSERVATIVE HIGH-YIELD BOND
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ FOREIGN GOVERNMENT OBLIGATIONS (0.9%) Republic of Colombia 9.75%, due 04/23/2009 $ 1,000,000 $ 902,500 -------------- TOTAL FOREIGN GOVERNMENT OBLIGATIONS (COST: $921,106) 902,500 -------------- CORPORATE DEBT SECURITIES (88.3%) Aerospace (2.0%) AAR CORP. 7.25%, due 10/15/2003 2,000,000 2,043,040 Air Transportation (0.2%) Piedmont Airlines, Inc. - Series K 10.10%, due 05/13/2007 1,048,000 178,160 Automotive (7.5%) ArvinMeritor, Inc. 6.75%, due 03/15/2008 3,000,000 2,715,000 Dana Corporation (b) 6.25%, due 03/01/2004 1,000,000 960,000 Dura Operating Corporation 8.63%, due 04/15/2012 1,000,000 975,000 Ford Motor Company 6.63%, due 10/01/2028 2,000,000 1,419,540 Navistar International Corporation 9.38%, due 06/01/2006 2,000,000 1,780,000 Automotive Dealers & Service Stations (0.8%) Asbury Automotive Group, Inc. 9.00%, due 06/15/2012 1,000,000 850,000 Business Credit Institutions (3.9%) Ford Motor Credit Company (b) 6.50%, due 01/25/2007 1,000,000 921,950 HVB Funding Trust III - 144A (c) 9.00%, due 10/22/2031 1,000,000 864,040 PDVSA Finance Ltd. 6.45%, due 02/15/2004 2,250,000 2,224,598 Business Services (0.1%) Exodus Communications, Inc. (d) 11.63%, due 07/15/2010 1,000,000 60,000 Chemicals & Allied Products (1.9%) Elizabeth Arden, Inc. (b) 11.75%, due 02/01/2011 1,000,000 980,000 Huntsman International LLC (b) 9.88%, due 03/01/2009 1,000,000 990,000 Commercial Banks (1.0%) Popular, Inc. 6.13%, due 10/15/2006 1,000,000 1,061,610 Communication (1.0%) Adelphia Communications Corporation (b) (d) 10.25%, due 11/01/2006 1,000,000 330,000 Charter Communications Holdings LLC 8.63%, due 04/01/2009 1,000,000 430,000 0.00%, due 04/01/2011 (e) 1,000,000 310,000 Communications Equipment (1.9%) L-3 Communications Corporation 7.63%, due 06/15/2012 1,000,000 1,035,000 Lucent Technologies Inc. (b) 7.25%, due 07/15/2006 1,000,000 520,000 Nortel Networks Corporation (b) 6.13%, due 02/15/2006 1,000,000 465,000 Computer & Data Processing Services (1.9%) Unisys Corporation 7.88%, due 04/01/2008 2,000,000 2,000,000 Computer & Office Equipment (1.5%) Seagate Technology HDD Holdings - 144A (c) 8.00%, due 05/15/2009 1,500,000 1,530,000
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Construction (0.7%) Centex Corporation 5.80%, due 09/15/2009 $ 750,000 $ 748,418 Electric Services (9.4%) AES Corporation (The) (b) 8.75%, due 12/15/2002 1,000,000 890,000 Calpine Corporation 7.75%, due 04/15/2009 2,000,000 630,000 Dynegy Holdings Inc. 7.67%, due 11/08/2016 2,000,000 960,000 Elwood Energy LLC 8.16%, due 07/05/2026 1,959,500 1,955,561 Nevada Power Company 8.25%, due 06/01/2011 2,000,000 1,720,000 Oncor Electric Delivery Company - 144A (c) 7.00%, due 05/01/2032 1,000,000 850,000 Westar Energy, Inc. 7.88%, due 05/01/2007 3,000,000 2,886,780 Electronic Components & Accessories (0.6%) ON Semiconductor Corporation - 144A (c) 12.00%, due 05/15/2008 1,000,000 610,000 Environmental Services (1.9%) Allied Waste North America, Inc. (b) 10.00%, due 08/01/2009 2,000,000 1,927,500 Food Stores (0.9%) Ingles Markets, Incorporated 8.88%, due 12/01/2011 1,000,000 890,000 Furniture & Fixtures (1.6%) BE Aerospace 8.00%, due 03/01/2008 1,000,000 660,000 Lear Corporation 8.11%, due 05/15/2009 1,000,000 1,045,000 Gas Production & Distribution (1.3%) Williams Companies, Inc. (The) 9.25%, due 03/15/2004 2,000,000 1,300,000 Health Services (0.5%) Insight Health Services Corp. 9.88%, due 11/01/2011 500,000 477,500 Hotels & Other Lodging Places (3.8%) John Q. Hammons Hotels, Inc. - Series B 8.88%, due 05/15/2012 2,000,000 1,925,000 Las Vegas Sands, Inc. (Venetian Casino Resort LLC) - 144A (c) 11.00%, due 06/15/2010 1,000,000 1,025,000 Park Place Entertainment Corporation (b) 8.13%, due 05/15/2011 1,000,000 1,000,000 Industrial Machinery & Equipment (1.4%) Columbus McKinnon Corporation (b) 8.50%, due 04/01/2008 2,000,000 1,500,000 Lumber & Wood Products (1.7%) Scotia Pacific Company LLC 7.11%, due 01/20/2014 2,000,000 1,716,220 Medical Instruments & Supplies (1.6%) C.R. Bard, Inc. 6.70%, due 12/01/2026 1,500,000 1,649,835 Motion Pictures (1.0%) AOL Time Warner Inc. 7.75%, due 06/15/2005 1,000,000 1,025,336
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX TRANSAMERICA CONSERVATIVE HIGH-YIELD BOND 140 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Oil & Gas Extraction (8.8%) Alberta Energy Company Ltd. 7.38%, due 11/01/2031 $ 1,000,000 $ 1,112,820 Chesapeake Energy Corporation 8.38%, due 11/01/2008 1,000,000 1,020,000 Forest Oil Corporation 8.00%, due 12/15/2011 500,000 530,000 7.75%, due 05/01/2014 1,000,000 1,010,000 Louisiana Land and Exploration Company (The) 7.63%, due 04/15/2013 2,000,000 2,296,420 PDVSA Finance Ltd. - Series 1998-1B 6.65%, due 02/15/2006 1,500,000 1,352,190 Petroleum Geo-Sevices ASA (d) 6.63%, due 03/30/2008 2,300,000 943,000 Stone Energy Corporation 8.25%, due 12/15/2011 1,000,000 1,015,000 Paper & Allied Products (1.0%) Jefferson Smurfit Group PLC 8.25%, due 10/01/2012 1,000,000 1,005,000 Paper & Paper Products (2.0%) MDP Acquisitions PLC - 144A (c) 9.63%, due 10/01/2012 2,000,000 2,060,000 Personal Credit Institutions (3.0%) Household Finance Corporation 5.75%, due 01/30/2007 2,000,000 1,746,460 6.40%, due 06/17/2008 1,500,000 1,331,529 Petroleum & Petroleum Products (0.3%) Enron Corp. (d) 6.75%, due 08/01/2009 3,000,000 315,000 Primary Metal Industries (1.0%) Oregon Steel Mills, Inc. - 144A (c) 10.00%, due 07/15/2009 1,000,000 1,000,000 Printing & Publishing (3.9%) Dex Media East LLC (Dex Media Finance Co.) - 144A (c) 9.88%, due 11/15/2009 1,000,000 1,030,000 News America Incorporated 7.25%, due 05/18/2018 1,000,000 917,780 Quebecor World Inc. 7.75%, due 02/15/2009 2,000,000 2,058,520 Radio & Television Broadcasting (1.0%) Canwest Media, Inc. (b) 10.63%, due 05/15/2011 1,000,000 1,065,000 Railroads (2.1%) Kansas City Southern 9.50%, due 10/01/2008 2,000,000 2,180,000 Restaurants (1.0%) YUM! Brands, Inc. 7.70%, due 07/01/2012 1,000,000 1,035,000 Rubber & Misc. Plastic Products (0.5%) Applied Extrusion Technologies, Inc. 10.75%, due 07/01/2011 1,000,000 570,000 Savings Institutions (4.4%) Golden State Holdings Inc. 7.13%, due 08/01/2005 2,000,000 2,146,780 People's Bank 7.20%, due 12/01/2006 2,300,000 2,461,046 Stone, Clay & Glass Products (1.8%) Owens-Illinois, Inc. 7.85%, due 05/15/2004 (b) 1,000,000 965,000 7.15%, due 05/15/2005 1,000,000 950,000 Telecommunications (1.9%) Qwest Capital Funding, Inc. 7.00%, due 08/03/2009 2,000,000 1,070,000 7.90%, due 08/15/2010 1,000,000 540,000 WorldCom, Inc. (d) 7.50%, due 05/15/2011 2,000,000 347,500
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Water Transportation (2.5%) Royal Caribbean Cruises Ltd. 7.00%, due 10/15/2007 $ 1,000,000 $ 855,000 8.75%, due 02/02/2011 (b) 2,000,000 1,750,000 Wholesale Trade Nondurable Goods (3.0%) DIMON Incorporated 9.63%, due 10/15/2011 1,000,000 1,037,500 Nash-Finch Company - Series B 8.50%, due 05/01/2008 2,500,000 2,100,000 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $105,868,823) 91,851,633 --------------
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (0.0%) Telecommunications (0.0%) McLeodUSA Incorporated - Series A 6,840 $ 14,774 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $1,466,414) 14,774 -------------- PREFERRED STOCKS (1.9%) Holding & Other Investment Offices (1.9%) Duke Realty Corporation 40,000 1,965,000 -------------- TOTAL PREFERRED STOCKS (COST: $2,008,000) 1,965,000 -------------- COMMON STOCKS (0.0%) Printing & Publishing (0.0%) Golden Books Family Entertainment, Inc. (a) 63,750 38 Telecommunications (0.0%) McLeodUSA Incorporated - warrants 15,158 758 -------------- TOTAL COMMON STOCKS (COST: $168,426) 796 -------------- TOTAL INVESTMENT SECURITIES (COST: $110,432,769) $ 94,734,703 ============== SUMMARY: Investments, at market value 91.1% $ 94,734,703 Other assets in excess of liabilities 8.9% 9,207,451 ------------- -------------- Net assets 100.0% $ 103,942,154 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $8,940,944. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (c) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. (d) Currently in default on interest payments. (e) Securities are Step Bonds. Charter Communications Holdings LLC has a coupon rate 0.00% until 04/01/2004, thereafter the coupon rate will be 9.92%. 141 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX TRANSAMERICA CONVERTIBLE SECURITIES
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE BONDS (59.9%) Automotive Dealers & Service Stations (1.5%) Pep Boys (The) - Manny, Moe & Jack - 144A (a) 4.25%, due 06/01/2007 $ 220,000 $ 186,725 Business Services (2.0%) First Data Corporation 2.00%, due 03/01/2008 225,000 255,094 Communication (4.4%) Echostar Communications Corporation 4.88%, due 01/01/2007 430,000 350,987 Liberty Media Corporation 3.25%, due 03/15/2031 200,000 198,750 Communications Equipment (2.2%) L-3 Communications Holdings, Inc. 4.00%, due 09/15/2011 249,000 280,436 Computer & Data Processing Services (3.8%) Affiliated Computer Services, Inc. 3.50%, due 02/15/2006 222,700 289,232 Rational Software Corporation 5.00%, due 02/01/2007 225,000 186,750 Computer & Office Equipment (5.1%) Juniper Networks, Inc. 4.75%, due 03/15/2007 300,000 212,250 Xerox Corporation 0.57%, due 04/21/2018 725,000 434,999 Electronic Components & Accessories (1.0%) LSI Logic Corporation 4.00%, due 11/01/2006 160,000 120,600 Health Services (6.5%) Laboratory Corporation of America Holdings Zero Coupon, due 09/11/2021 415,000 275,975 LifePoint Hospitals, Inc. 4.50%, due 06/01/2009 150,000 153,000 Province Healthcare Company 4.50%, due 11/20/2005 225,000 193,219 Universal Health Services, Inc. 0.43%, due 06/23/2020 300,000 198,375 Holding & Other Investment Offices (0.8%) EOP Operating LP 7.25%, due 11/15/2008 100,000 103,500 Hotels & Other Lodging Places (0.4%) Marriott International, Inc. Zero Coupon, due 05/08/2021 60,000 50,925 Insurance (5.7%) American International Group, Inc. Zero Coupon, due 11/09/2031 325,000 207,188 LifePoint Hospitals Holdings, Inc. - 144A (a) 4.50%, due 06/01/2009 85,000 86,700 Odyssey Re Holdings Corp. 4.38%, due 06/15/2022 205,000 227,806 Selective Insurance Group, Inc. - 144A (a) 1.62%, due 09/24/2032 500,000 195,000 Lumber & Wood Products (1.5%) Masco Corporation Zero Coupon, due 07/20/2031 450,000 190,125 Medical Instruments & Supplies (2.5%) Medtronic, Inc. 1.25%, due 09/15/2021 300,000 310,500 Oil & Gas Extraction (6.0%) Anadarko Petroleum Corporation Zero Coupon, due 03/07/2020 500,000 302,500 Diamond Offshore Drilling, Inc. 1.50%, due 04/15/2031 150,000 135,000 Nabors Industries Ltd. Zero Coupon, due 02/05/2021 510,000 312,375
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Pharmaceuticals (8.9%) Allergan, Inc. Zero Coupon, due 11/01/2020 $ 500,000 $ 316,250 ALZA Corporation Zero Coupon, due 07/28/2020 370,000 312,650 Amgen Inc. Zero Coupon, due 03/01/2032 250,000 178,438 Isis Pharmaceuticals, Inc. - 144A (a) 5.50%, due 05/01/2009 75,000 65,906 Roche Holdings AG - 144A (a) Zero Coupon, due 01/19/2015 360,000 255,600 Radio, Television & Computer Stores (1.9%) Best Buy Co., Inc. 2.25%, due 01/15/2022 310,000 234,825 Telecommunications (1.8%) Verizon Global Funding Corp. Zero Coupon, due 05/15/2021 400,000 224,500 Variety Stores (1.9%) Costco Wholesale Corporation Zero Coupon, due 08/19/2017 300,000 240,750 Wholesale Trade Durable Goods (0.4%) IKON Office Solutions, Inc. - 144A (a) 5.00%, due 05/01/2007 70,000 56,438 Wholesale Trade Nondurable Goods (1.6%) SUPERVALU Inc. Zero Coupon, due 11/02/2031 720,000 198,900 -------------- TOTAL CONVERTIBLE BONDS (COST: $7,704,296) 7,542,268 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (33.9%) Aerospace (2.6%) Northrop Grumman Corporation 2,950 $ 328,306 Business Services (1.5%) Newell Financial Trust I 4,000 185,500 Commercial Banks (1.8%) Provident Financial Group, Inc. 9,000 230,400 Electric Services (2.1%) DTE Energy Company 9,500 262,865 Electric, Gas & Sanitary Services (2.0%) Ameren Corporation 9,300 245,520 Industrial Machinery & Equipment (1.7%) Weatherford International, Inc. 4,400 219,450 Insurance (7.6%) Anthem, Inc. 3,250 258,375 PartnerRe Ltd. 4,700 256,855 St. Paul Companies, Inc. (The) 4,000 255,280 Travelers Property Casualty Corp. 8,400 178,500 Insurance Agents, Brokers & Service (1.8%) Hartford Financial Services Group, Inc. (The) 5,000 221,850 Life Insurance (3.3%) Platinum Underwriters Holdings, Ltd. 10,000 277,500 Prudential Financial, Inc. - units 2,800 143,948 Paper & Allied Products (1.3%) International Paper Company 3,600 164,700 Petroleum Refining (1.8%) VEC Trust I 8,000 228,800 Savings Institutions (4.5%) New York Community Capital Trust V 5,000 254,375 Washington Mutual, Inc. - units 6,000 314,250
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX TRANSAMERICA CONVERTIBLE SECURITIES 142 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Telecommunications (1.9%) ALLTEL Corporation 4,800 $ 239,520 -------------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST: $4,210,658) 4,265,994 -------------- PREFERRED STOCKS (1.2%) Automotive (1.2%) General Motors Corporation 7,300 152,205 -------------- TOTAL PREFERRED STOCKS (COST: $187,164) 152,205 -------------- COMMON STOCKS (3.4%) Finance (1.9%) Express Scripts Automatic Exchange Securities Trust 2,400 237,192 Insurance (1.5%) Berkshire Hathaway Inc. - 144A (a)(b) 18 186,845 -------------- TOTAL COMMON STOCKS (COST: $421,765) 424,037 -------------- TOTAL INVESTMENT SECURITIES (COST: $12,523,883) $ 12,384,504 ============== SUMMARY: Investments, at market value 98.4% $ 12,384,504 Other assets in excess of liabilities 1.6% 200,667 ------------- -------------- Net assets 100.0% $ 12,585,171 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. (b) Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees. 143 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX TRANSAMERICA EQUITY
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (90.5%) Business Services (17.7%) Clear Channel Communications, Inc. (a) 30,000 $ 1,111,500 First Data Corporation 60,000 2,096,400 Moody's Corporation 30,000 1,413,000 Robert Half International Inc. (a) 35,000 584,500 Chemicals & Allied Products (0.7%) Pharmacia Corporation 5,000 215,000 Commercial Banks (10.1%) MBNA Corporation 45,000 913,950 Northern Trust Corporation 26,000 905,320 State Street Corporation 28,000 1,158,360 Communication (10.8%) Cox Communications, Inc. - Class A (a) 37,000 1,013,800 Echostar Communications Corporation - Class A (a) 50,000 1,019,500 Liberty Media Corporation - Class A (a) 135,000 1,116,450 Communications Equipment (3.3%) QUALCOMM Incorporated (a) 28,000 966,560 Computer & Data Processing Services (4.9%) Microsoft Corporation (a) 27,000 1,443,690 Drug Stores & Proprietary Stores (3.2%) Walgreen Co. 28,000 945,000 Electronic Components & Accessories (2.1%) Intel Corporation 35,000 605,500 Fabricated Metal Products (3.5%) Gillette Company (The) 35,000 1,045,800 Food Stores (2.3%) Safeway Inc. (a) 30,000 693,000 Hotels & Other Lodging Places (2.9%) Marriott International, Inc. - Class A 28,000 866,040 Management Services (3.4%) Paychex, Inc. 35,000 1,008,700 Pharmaceuticals (4.6%) Allergan, Inc. 20,000 1,089,000 Pfizer Inc. 8,000 254,160 Radio, Television & Computer Stores (2.8%) RadioShack Corporation 40,000 836,000 Security & Commodity Brokers (2.6%) Schwab (Charles) Corporation (The) 85,000 780,300 Transportation & Public Utilities (7.9%) Expedia, Inc. - Class A (a) 16,000 1,082,560 Expeditors International of Washington, Inc. 40,000 1,260,400 Trucking & Warehousing (4.1%) United Parcel Service, Inc. - Class B 20,000 1,200,200 Variety Stores (3.6%) Wal-Mart Stores, Inc. 20,000 1,071,000 -------------- TOTAL COMMON STOCKS (COST: $29,232,954) 26,695,690 -------------- TOTAL INVESTMENT SECURITIES (COST: $29,232,954) $ 26,695,690 ============== SUMMARY: Investments, at market value 90.5% $ 26,695,690 Other assets in excess of liabilities 9.5% 2,812,044 ------------- -------------- Net assets 100.0% $ 29,507,734 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. 144 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX TRANSAMERICA GROWTH OPPORTUNITIES
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (89.0%) Automotive (4.1%) Gentex Corporation (a) 29,000 $ 854,920 Business Credit Institutions (3.9%) Financial Federal Corporation (a) 29,000 812,580 Business Services (8.4%) Moody's Corporation 13,000 612,300 NetRatings, Inc. (a) 12,500 67,500 Robert Half International Inc. (a) 67,000 1,118,900 Communication (4.6%) Global Payments Inc. 34,000 960,500 Computer & Data Processing Services (9.4%) BARRA, Inc. (a) 34,000 1,220,260 SmartForce PLC - ADR (a) 192,500 771,925 Educational Services (4.2%) DeVRY Inc. (a) 62,000 880,400 Electronic Components & Accessories (6.1%) QLogic Corporation (a) 21,000 731,010 TriQuint Semiconductor, Inc. (a) 110,000 555,500 Industrial Machinery & Equipment (4.4%) Cymer, Inc. (a) 30,000 753,600 Graco Inc. 6,000 164,100 Oil & Gas Extraction (4.4%) EOG Resources, Inc. 25,000 925,750 Paperboard Containers & Boxes (4.4%) Packaging Corporation of America (a) 53,000 921,140 Personal Services (0.4%) Weight Watchers International, Inc. (a) 1,800 85,230 Pharmaceuticals (4.9%) Techne Corporation (a) 31,000 1,023,000 Radio, Television & Computer Stores (4.0%) RadioShack Corporation 40,000 836,000 Research & Testing Services (0.5%) Symyx Technologies, Inc. (a) 8,250 94,958 Security & Commodity Brokers (8.2%) BlackRock, Inc. (a) 20,500 732,260 Investment Technology Group, Inc. (a) 31,000 988,900 Transportation & Public Utilities (17.1%) C.H. Robinson Worldwide, Inc. 32,000 946,240 Expedia, Inc. - Class A (a) 20,000 1,353,200 Expeditors International of Washington, Inc. 39,000 1,228,890 Forward Air Corporation (a) 6,000 103,980 -------------- TOTAL COMMON STOCKS (COST: $19,346,932) 18,743,043 -------------- TOTAL INVESTMENT SECURITIES (COST: $19,346,932) $ 18,743,043 ============== SUMMARY: Investments, at market value 89.0% $ 18,743,043 Other assets in excess of liabilities 11.0% 2,319,120 ------------- -------------- Net assets 100.0% $ 21,062,163 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. DEFINITIONS: ADR American Depositary Receipt 145 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX TRANSAMERICA MONEY MARKET
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ COMMERCIAL PAPER (99.1%) Asset-Backed (14.1%) Asset Securitization Cooperative Corporation - 144A (a) 1.76%, due 11/12/2002 $ 2,800,000 $ 2,798,494 Ciesco LP - 144A (a) 1.75%, due 11/07/2002 3,000,000 2,999,125 1.75%, due 11/25/2002 3,300,000 3,296,150 1.75%, due 11/27/2002 4,500,000 4,494,313 Corporate Asset Funding Co., Inc. - 144A (a) 1.66%, due 11/04/2002 500,000 499,931 1.75%, due 11/13/2002 2,000,000 1,998,833 Delaware Funding Corporation - 144A (a) 1.76%, due 11/20/2002 3,500,000 3,496,749 1.76%, due 11/25/2002 2,500,000 2,497,067 1.78%, due 01/07/2003 5,000,000 4,983,436 1.77%, due 01/13/2003 1,000,000 996,411 Receivables Capital Corporation - 144A (a) 1.74%, due 11/13/2002 900,000 899,478 1.75%, due 11/21/2002 2,700,000 2,697,375 1.77%, due 11/22/2002 1,400,000 1,398,554 1.76%, due 12/03/2002 1,291,000 1,288,980 Beverages (4.1%) Coca-Cola Company (The) 1.72%, due 11/05/2002 1,000,000 999,809 1.71%, due 11/26/2002 1,800,000 1,797,862 1.68%, due 11/26/2002 1,200,000 1,198,600 1.70%, due 12/16/2002 1,200,000 1,197,450 1.65%, due 01/09/2003 2,500,000 2,492,094 1.65%, due 01/21/2003 2,300,000 2,291,461 Business Credit Institutions (3.9%) Caterpillar Financial Services Corporation 1.71%, due 11/01/2002 2,200,000 2,200,000 1.69%, due 11/06/2002 1,500,000 1,499,648 1.71%, due 11/08/2002 2,900,000 2,899,036 1.73%, due 12/23/2002 2,000,000 1,995,002 1.71%, due 12/23/2002 1,000,000 997,530 Chemicals & Allied Products (6.9%) du Pont (E.I.) de Nemours and Company 1.71%, due 11/12/2002 2,000,000 1,998,955 1.71%, due 11/13/2002 1,800,000 1,798,974 1.67%, due 12/09/2002 3,000,000 2,994,712 1.67%, due 12/11/2002 3,000,000 2,994,433 1.67%, due 12/12/2002 1,600,000 1,596,957 Proctor & Gamble Company (The) 1.72%, due 11/04/2002 2,500,000 2,499,641 1.72%, due 11/22/2002 3,000,000 2,996,990 Commercial Banks (15.4%) Canadian Imperial Bank of Commerce 1.75%, due 12/09/2002 2,000,000 2,000,000 1.75%, due 12/10/2002 1,400,000 1,400,000 1.65%, due 01/03/2003 2,000,000 2,000,000 1.65%, due 01/06/2003 1,500,000 1,500,000 1.65%, due 01/08/2003 2,500,000 2,500,000 Toronto Dominion Holdings (USA), Inc. 1.84%, due 11/01/2002 1,000,000 1,000,000 1.87%, due 11/04/2002 1,000,000 999,844 1.86%, due 11/07/2002 1,500,000 1,499,535 1.93%, due 11/12/2002 1,000,000 999,410 1.64%, due 11/27/2002 1,400,000 1,398,342 1.69%, due 12/18/2002 5,000,000 4,988,968 UBS Finance (Delaware) LLC 1.75%, due 11/06/2002 3,000,000 2,999,271 1.64%, due 12/18/2002 2,700,000 2,694,219
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Commercial Banks (continued) Wells Fargo & Company 1.69%, due 11/06/2002 $ 3,800,000 $ 3,799,108 1.71%, due 11/06/2002 800,000 799,810 1.64%, due 11/07/2002 2,200,000 2,199,398 1.64%, due 11/15/2002 700,000 699,554 1.66%, due 11/20/2002 2,000,000 1,998,248 1.64%, due 11/29/2002 2,000,000 1,997,449 Computer & Office Equipment (3.7%) International Business Machines Corporation 1.70%, due 11/08/2002 5,000,000 4,998,347 1.73%, due 11/19/2002 4,000,000 3,996,540 Electronic & Other Electric Equipment (3.3%) Emerson Electric Co. - 144A (a) 1.68%, due 11/18/2002 2,500,000 2,498,017 1.70%, due 12/23/2002 530,000 528,699 General Electric Company 1.72%, due 11/14/2002 3,000,000 2,998,137 1.73%, due 12/13/2002 2,000,000 1,995,963 Fabricated Metal Products (2.7%) Gillette Company (The) 1.65%, due 01/06/2003 505,000 503,473 1.72%, due 01/10/2003 2,000,000 1,993,312 1.72%, due 01/13/2003 1,500,000 1,494,769 1.72%, due 01/22/2003 2,500,000 2,490,206 Food & Kindred Products (4.8%) Unilever Capital Corporation - 144A (a) 1.70%, due 11/01/2002 2,300,000 2,300,000 1.69%, due 11/01/2002 1,500,000 1,500,000 1.69%, due 11/05/2002 1,800,000 1,799,662 1.67%, due 11/15/2002 6,000,000 5,996,102 Insurance (4.2%) USAA Capital Corporation 1.72%, due 11/01/2002 4,050,000 4,050,000 1.72%, due 11/14/2002 6,200,000 6,196,148 Life Insurance (2.7%) AIG Funding, Inc. 1.64%, due 11/06/2002 1,130,000 1,129,743 1.85%, due 11/08/2002 2,000,000 1,999,281 1.70%, due 12/02/2002 3,500,000 3,494,876 Paper & Allied Products (1.7%) Kimberly-Clark Corporation 1.73%, due 11/13/2002 2,000,000 1,998,847 Minnesota Mining & Manufacturing Company 1.70%, due 11/25/2002 2,200,000 2,197,507 Personal Credit Institutions (7.3%) General Electric Capital Corporation 1.77%, due 11/05/2002 550,000 549,892 1.72%, due 11/18/2002 1,000,000 999,188 1.73%, due 01/14/2003 4,000,000 3,985,776 1.72%, due 02/24/2003 1,000,000 994,506 Toyota Motor Credit Corporation - 144A (a) 1.72%, due 11/08/2002 2,200,000 2,199,264 1.72%, due 12/06/2002 5,000,000 4,991,639 1.72%, due 12/12/2002 4,000,000 3,992,164 Pharmaceuticals (5.4%) Lily (Eli) and Company 1.70%, due 11/04/2002 1,300,000 1,299,816
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX TRANSAMERICA MONEY MARKET 146 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Pharmaceuticals (continued) Pfizer, Inc. 1.72%, due 11/18/2002 $ 1,600,000 $ 1,598,700 1.73%, due 11/19/2002 1,000,000 999,135 1.66%, due 12/03/2002 1,600,000 1,597,639 1.68%, due 12/04/2002 1,200,000 1,198,152 1.67%, due 12/05/2002 1,500,000 1,497,634 1.71%, due 12/05/2002 900,000 898,547 1.66%, due 01/28/2003 2,000,000 1,991,884 1.67%, due 01/28/2003 2,000,000 1,991,836 Printing and Publishing (3.7%) Gannett Co., Inc. - 144A (a) 1.72%, due 11/04/2002 3,000,000 2,999,570 1.75%, due 11/04/2002 2,000,000 1,999,708 1.72%, due 11/15/2002 4,100,000 4,097,258 Public Administration (2.1%) Canadian Wheat Board 1.81%, due 11/04/2002 1,000,000 999,849 1.77%, due 11/13/2002 500,000 499,705 1.71%, due 11/15/2002 1,000,000 999,335 1.71%, due 11/25/2002 1,000,000 998,860 1.66%, due 11/29/2002 1,700,000 1,697,805 Security & Commodity Brokers (8.6%) Goldman Sachs Group, Inc. (The) 1.70%, due 11/21/2002 2,000,000 1,998,111 1.70%, due 11/22/2002 2,000,000 1,998,016 1.80%, due 01/06/2003 1,000,000 996,700 1.80%, due 01/07/2003 1,000,000 996,650 1.82%, due 01/08/2003 1,000,000 996,563 1.82%, due 01/09/2003 1,000,000 996,512 1.76%, due 01/23/2003 350,000 348,580
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Security & Commodity Brokers (continued) Merrill Lynch & Co., Inc. 1.63%, due 11/06/2002 $ 900,000 $ 899,796 1.72%, due 11/14/2002 2,000,000 1,998,758 1.74%, due 01/15/2003 5,000,000 4,981,875 1.74%, due 01/16/2003 4,700,000 4,682,735 Variety Stores (4.5%) Wal-Mart Stores, Inc. - 144A (a) 1.72%, due 11/05/2002 3,800,000 3,799,274 1.61%, due 11/12/2002 1,500,000 1,499,262 1.69%, due 11/19/2002 4,000,000 3,996,620 1.70%, due 11/26/2002 1,700,000 1,697,993 -------------- TOTAL COMMERCIAL PAPER (COST: $241,392,142) 241,392,142 -------------- TOTAL INVESTMENT SECURITIES (COST: $241,392,142) $ 241,392,142 ============== SUMMARY: Investments, at market value 99.1% $ 241,392,142 Other assets in excess of liabilities 0.9% 2,241,062 ------------- -------------- Net assets 100.0% $ 243,633,204 ============= ==============
- -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. 147 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- IDEX TRANSAMERICA VALUE BALANCED
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS (18.8%) U.S. Treasury Bond 3.63%, due 03/31/2004 $ 1,250,000 $ 1,287,381 4.88%, due 02/15/2012 (b) 250,000 269,564 5.38%, due 02/15/2031 (b) 950,000 1,002,732 U.S. Treasury Note (b) 3.50%, due 11/15/2006 3,000,000 3,111,312 -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST: $5,327,693) 5,670,989 -------------- CORPORATE DEBT SECURITIES (18.8%) Agriculture (0.9%) Cargill, Incorporated - 144A (c) 6.38%, due 06/01/2012 250,000 275,682 Air Transportation (0.8%) Delta Air Lines, Inc. 7.57%, due 11/18/2010 250,000 227,589 Amusement & Recreation Services (0.8%) Disney (Walt) Company (The) 4.88%, due 07/02/2004 250,000 255,155 Chemicals & Allied Products (0.8%) Dow Chemical Company (The) 5.25%, due 05/14/2004 250,000 254,496 Commercial Banks (1.7%) Abbey National PLC 7.35%, due 10/29/2049 250,000 271,985 Citigroup Inc. (b) 5.00%, due 03/06/2007 125,000 131,873 CS First Boston - 144A (c) (d) 7.90%, due 05/01/2007 125,000 133,049 Computer & Office Equipment (0.9%) Hewlett-Packard Company 5.50%, due 07/01/2007 250,000 258,258 Electric Services (0.7%) Oncor Electric Delivery Company - 144A (c) 7.00%, due 09/01/2022 250,000 217,959 Gas Production & Distribution (0.5%) Coastal Corporation (The) 7.42%, due 02/15/2037 215,000 139,750 Health Services (0.9%) HCA Inc. 7.13%, due 06/01/2006 250,000 262,749 Holding & Other Investment Offices (0.9%) Duke Realty Corporation 7.30%, due 06/30/2003 250,000 257,545 Insurance (0.9%) St. Paul Companies, Inc. (The) 5.75%, due 03/15/2007 250,000 256,845 Motion Pictures (0.9%) AOL Time Warner Inc. 9.13%, due 01/15/2013 250,000 268,723 Paper & Allied Products (1.5%) Abitibi-Consolidated Inc. 8.85%, due 08/01/2030 250,000 238,694 Bowater Canada Finance Corporation - 144A (c) 7.95%, due 11/15/2011 250,000 244,476 Personal Credit Institutions (1.6%) General Motors Acceptance Corporation 6.75%, due 01/15/2006 250,000 247,655 Household Finance Corporation 6.75%, due 05/15/2011 250,000 220,981 Petroleum Refining (0.9%) Suncor Energy Inc. 7.15%, due 02/01/2032 250,000 270,939
- ------------------------------------------------------------------------------------------ PRINCIPAL MARKET AMOUNT VALUE - ------------------------------------------------------------------------------------------ Printing & Publishing (0.7%) News Corporation Limited (The) 7.75%, due 12/01/2045 $ 250,000 $ 218,430 Savings Institutions (0.9%) Golden State Holdings Inc. 7.13%, due 08/01/2005 250,000 270,864 Security & Commodity Brokers (0.9%) Bear Stearns Companies Inc. (The) 5.70%, due 11/15/2014 125,000 124,589 Goldman Sachs Group, Inc. (The) 6.60%, due 01/15/2012 125,000 135,856 Telecommunications (1.6%) AT&T Corp. (b) 8.00%, due 11/15/2031 250,000 238,750 Sprint Capital Corporation 5.70%, due 11/15/2003 250,000 240,195 -------------- TOTAL CORPORATE DEBT SECURITIES (COST: $5,789,351) 5,663,087 -------------- - ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ COMMON STOCKS (57.4%) Air Transportation (1.5%) FedEx Corporation 8,500 $ 452,115 Amusement & Recreation Services (2.9%) Disney (Walt) Company (The) 52,200 871,740 Chemicals & Allied Products (2.1%) du Pont (E.I.) de Nemours and Company 15,000 618,750 Commercial Banks (8.3%) Bank of America Corporation 6,000 418,800 FleetBoston Financial Corporation 61,010 1,427,024 Morgan Chase & Co. (J.P.) 10,000 207,500 Wachovia Corporation 13,030 453,314 Communication (2.0%) Cox Communications, Inc. - Class A (a) 22,300 611,020 Electronic & Other Electric Equipment (0.6%) Cooper Industries, Inc. - Class A 6,000 188,940 Electronic Components & Accessories (1.5%) Intel Corporation 25,800 446,340 Gas Production & Distribution (1.5%) KeySpan Corporation 12,000 438,360 Holding & Other Investment Offices (0.1%) Host Marriott Corporation (a) (b) 5,000 41,000 Insurance (2.6%) St. Paul Companies, Inc. (The) (b) 23,710 777,688 Life Insurance (2.4%) John Hancock Financial Services, Inc. 21,000 615,300 Lincoln National Corporation 3,310 100,988 Lumber & Wood Products (0.9%) Louisiana-Pacific Corporation (a) 40,000 269,600 Motion Pictures (0.3%) AOL Time Warner Inc. (a) 6,000 88,500 Oil & Gas Extraction (0.5%) Diamond Offshore Drilling, Inc. 7,500 156,750 Petroleum Refining (1.1%) ChevronTexaco Corporation 2,000 135,260 Exxon Mobil Corporation 5,500 185,130 Pharmaceuticals (8.1%) Bristol-Myers Squibb Co. 24,450 601,715 Merck & Co., Inc. 20,750 1,125,480 Schering-Plough Corporation 33,580 716,933 Savings Institutions (5.5%) Washington Mutual, Inc. 400 1,659,264
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX TRANSAMERICA VALUE BALANCED 148 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules.
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET SHARES VALUE - ------------------------------------------------------------------------------------------ Security & Commodity Brokers (4.9%) Alliance Capital Management Holding L.P. 7,000 $ 203,770 Jefferies Group, Inc. (b) 11,000 458,150 Raymond James Financial, Inc. 11,000 344,300 T. Rowe Price Group, Inc. 17,000 479,910 Telecommunications (7.0%) ALLTEL Corporation 12,000 596,520 Sprint Corporation (FON Group) 91,100 1,131,462 Verizon Communications, Inc. 10,000 377,600 Tobacco Products (1.4%) Philip Morris Companies Inc. 10,000 407,500 U.S. Government Agencies (2.2%) Fannie Mae 10,000 668,600 -------------- TOTAL COMMON STOCKS (COST: $20,673,131) 17,275,323 -------------- TOTAL INVESTMENT SECURITIES (COST: $31,790,175) $ 28,609,399 ============== - ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ WRITTEN OPTIONS (-3.5%) Covered Call Options (-0.2%) ALLTEL Corporation Call Strike $50.00 Expires 01/18/2003 20 $ (5,650) Cox Communications Inc. - Class A Call Strike $35.00 Expires 03/22/2003 50 (6,125) DaimlerChrysler AG Call Strike $50.00 Expires 01/18/2003 40 (400) Diamond Offshore Drilling, Inc. Call Strike $22.50 Expires 03/22/2003 10 (1,775) FedEx Corporation Call Strike $60.00 Expires 01/18/2003 50 (5,125) Hewlett-Packard Company Call Strike $17.50 Expires 11/16/2002 250 (5,625) Hewlett-Packard Company Call Strike $20.00 Expires 01/18/2003 100 (3,000) Host Marriott Corporation Call Strike $12.50 Expires 01/18/2003 150 (1,500) Jefferies Group, Inc. Call Strike $50.00 Expires 04/19/2003 50 (9,625) KeySpan Corporation Call Strike $35.00 Expires 02/22/2003 20 (5,850) KeySpan Corporation Call Strike $40.00 Expires 02/22/2003 5 (238) Morgan Chase & Co. (J.P.) Call Strike $35.00 Expires 12/21/2002 100 (500) Morgan Chase & Co. (J.P.) Call Strike $30.00 Expires 01/17/2004 50 (6,250) Philip Morris Companies Inc. Call Strike $55.00 Expires 03/22/2003 30 (600) -------------- (52,263) --------------
- ------------------------------------------------------------------------------------------ NUMBER OF MARKET CONTRACTS VALUE - ------------------------------------------------------------------------------------------ Put Options (-3.3%) Alliance Capital Management Holding L.P. Put Strike $35.00 Expires 01/18/2003 100 $ (66,000) ALLTEL Corporation Put Strike $40.00 Expires 01/17/2004 100 (39,000) AOL Time Warner Inc. Put Strike $10.00 Expires 01/18/2003 40 (1,300) Bristol-Myers Squibb Co. Put Strike $45.00 Expires 01/18/2003 100 (205,000) Disney (Walt) Company (The) Put Strike $17.50 Expires 01/18/2003 225 (43,875) Disney (Walt) Company (The) Put Strike $15.00 Expires 01/17/2004 150 (33,750) Fannie Mae Put Strike $75.00 Expires 01/18/2003 50 (49,000) Fannie Mae Put Strike $70.00 Expires 01/17/2004 50 (59,750) Fannie Mae Put Strike $60.00 Expires 01/22/2005 35 (35,700) Fleet Boston Financial Corporation Put Strike $20.00 Expires 01/17/2004 120 (40,200) Heinz (H.J.) Company Put Strike $40.00 Expires 01/17/2004 120 (115,800) Intel Corporation Put Strike $20.00 Expires 01/18/2003 100 (34,000) Lincoln National Corporation Put Strike $40.00 Expires 01/18/2003 100 (99,500) Microsoft Corporation Put Strike $45.00 Expires 01/18/2003 100 (16,000) Raymond James Financial, Inc. Put Strike $30.00 Expires 11/16/2002 100 (4,250) Schering-Plough Corporation Put Strike $20.00 Expires 01/17/2004 100 (29,000) Sprint Corporation (FON Group) Put Strike $15.00 Expires 01/17/2004 170 (95,200) Verizon Communications, Inc. Put Strike $40.00 Expires 01/18/2003 100 (46,500) -------------- (1,013,825) -------------- TOTAL WRITTEN OPTIONS (PREMIUM: $635,452) $ (1,066,088) ============== SUMMARY: Investments, at market value 95.0% $ 28,609,399 Written Options -3.5% (1,066,088) Other assets in excess of liabilities 8.5% 2,563,672 ------------- -------------- Net assets 100.0% $ 30,106,983 ============= ==============
At October 31, 2002 - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- IDEX TRANSAMERICA VALUE BALANCED 149 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 The notes to the financial statements are an integral part of these schedules. - -------------------------------------------------------------------------------- NOTES TO SCHEDULE OF INVESTMENTS: (a) No dividends were paid during the preceding twelve months. (b) At October 31, 2002, all or a portion of this security is on loan (see Note 1). The market value at October 31, 2002 of all securities on loan is $5,283,215. Cash collateral for securities on loan shown in the Statement of Assets and Liabilities are invested in the following: bank notes, commercial paper, eurodollar overnight and term notes, money market funds and repurchase agreements. (c) Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. (d) Securities are Step Bonds. CS First Boston has a coupon rate of 7.9% until 05/01/2007, thereafter the coupon rate will be the 5 year current month treasury rate +200 BP if not called. Rate resets every 5 years. PREFACE TO THE FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES This schedule is also known as the Balance Sheet. Its objective is to report the financial position (net worth) of your fund. Items listed are the major components of your fund's net assets. Net Assets are derived by subtracting Liabilities from Assets. Net Asset Value Per Share is Net Assets divided by the Shares of Beneficial Interest Outstanding of the fund. Items of particular interest are defined below. ASSETS Articles of value the fund owns such as investments and receivables LIABILITIES Obligations of the fund such as expenses and payables NET ASSETS The result of Assets less Liabilities NET ASSETS CONSIST OF Composition of Net Assets in terms of capital investments by shareholders and accumulated earnings and profits (losses) of the fund SHARES OF BENEFICIAL INTEREST OUTSTANDING The number of shares owned by shareholders for each Share Class at the close of the period NET ASSET VALUE ("NAV") PER SHARE Net Assets attributable to a particular Class of Shares divided by the shares outstanding of that Class MAXIMUM OFFERING PRICE PER SHARE The NAV plus the maximum sales load, if any, attributable to the Share Class STATEMENT OF OPERATIONS This schedule is also known as the Income Statement. Its objective is to provide a financial summary of each fund's operations by listing the revenues generated during the period, expenses incurred during the period and the fund's profits and/or losses. Items of particular interest are defined below. INVESTMENT INCOME Earnings on fund investments such as dividends and interest EXPENSES Expenses incurred by the funds such as management fees NET INVESTMENT INCOME OR LOSS The result of Investment Income less Expenses REALIZED GAINS OR LOSSES Generally gains or losses from the sale of investments UNREALIZED GAINS OR LOSSES The difference between the current market value and the acquisition cost of securities currently held IDEX MUTUAL FUNDS 150 ANNUAL REPORT 2002 STATEMENT OF CHANGES IN NET ASSETS The objective of this statement is to summarize, in comparative form, the changes in net assets resulting from operations. For comparative purposes, the two most recent reporting periods are provided. Items of particular interest are defined below. OPERATIONS Summarized information from the Statement of Operations DISTRIBUTIONS TO SHAREHOLDERS Capital Gains and Investment Income distributions paid to shareholders CHANGE IN NET ASSETS RESULTING FROM SHARES OF BENEFICIAL INTEREST The change in Net Assets due to capital share purchases, reinvestment of distributions and share redemptions in the fund UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) The amount of Net Investment Income (Loss) that was not distributed to shareholders FINANCIAL HIGHLIGHTS The objective of this table is to present all critical financial data in terms of per share amounts. Beginning with the ending NAV from the prior period, carrying through all current period income, capital gains and distributions to arrive at the NAV at the end of the current period. Other specific detail represented within the schedule is defined below. TOTAL RETURN The performance of an investment (usually over one year), assuming no sales load and reinvestment of any distributions EXPENSE RATIO The percentage of a fund's average net assets used to pay its expenses. These expenses are deducted from fund assets, not from shareholder accounts PORTFOLIO TURNOVER RATIO A measure of fund trading activity during the year. A turnover ratio of 100% would represent a fund whose average holding period for a security was one year. A higher percentage would represent a shorter holding period. Funds with high turnover ratios incur higher transaction costs and are more likely to realize and distribute net capital gains IDEX MUTUAL FUNDS 151 ANNUAL REPORT 2002 See notes to the Statements of Assets and Liabilities on page 158. The notes to the financial statements are an integral part of these statements. 152 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 STATEMENTS OF ASSETS AND LIABILITIES October 31, 2002
All numbers (except per share amounts) IDEX AGGRESSIVE IDEX ALGER IDEX AMERICAN IDEX AMERICAN in thousands ASSET AGGRESSIVE CENTURY CENTURY -------------------------------------- ALLOCATION GROWTH INCOME & GROWTH INTERNATIONAL ASSETS: Investment securities, at market value (1)....................................... $ 29,943 $ 114,236 $ 28,814 $ 22,048 Cash (2).................................... 154 9,153 197 545 Collateral for securities on loan........... -- 16,521 2,399 773 Receivables: Investment securities sold................ -- 1,813 312 732 Shares of beneficial interest sold........ 1,205 19 35 6 Interest.................................. -- 5 -- 1 Dividends................................. -- 20 62 55 Due from investment adviser............... 6 -- 22 7 Unrealized appreciation on forward foreign currency contracts........................ -- -- -- -- Other....................................... 1 40 3 1 -------------- -------------- -------------- -------------- 31,309 141,807 31,844 24,168 -------------- -------------- -------------- -------------- LIABILITIES: Investment securities purchased............. -- 429 258 249 Accounts payable and accrued liabilities: Shares of beneficial interest redeemed.... 102 3,768 32 614 Management and advisory fees.............. -- 17 -- -- Distribution fees......................... 10 70 19 10 Transfer agent fees and expenses.......... 10 185 30 22 Due to custodian.......................... -- -- -- -- Payable for securities on loan.............. -- 16,521 2,399 773 Unrealized depreciation on forward foreign currency contracts........................ -- -- -- 1 Written options............................. -- -- -- -- Other....................................... 16 48 25 43 -------------- -------------- -------------- -------------- 138 21,038 2,763 1,712 -------------- -------------- -------------- -------------- NET ASSETS.................................... $ 31,171 $ 120,769 $ 29,081 $ 22,456 ============== ============== ============== ============== NET ASSETS CONSIST OF: Shares of beneficial interest, unlimited shares authorized......................... 34,845 265,106 39,863 31,482 Undistributed net investment income (loss).................................... -- (17) -- (1) Undistributed net realized gain (loss) from investments, futures/options contracts and foreign currency transactions............. (716) (140,170) (5,328) (8,431) Net unrealized appreciation (depreciation) of investments, futures/options contracts and on translation of assets and liabilities in foreign currencies......... (2,958) (4,150) (5,454) (594) -------------- -------------- -------------- -------------- NET ASSETS.................................... $ 31,171 $ 120,769 $ 29,081 $ 22,456 -------------- -------------- -------------- -------------- Investment securities, at cost.............. $ 32,902 $ 118,380 $ 34,268 $ 22,643 ============== ============== ============== ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING: Class A shares............................ 1,053 3,888 1,047 2,131 Class B shares............................ 1,322 3,046 1,949 788 Class C shares............................ 1,005 482 570 204 Class M shares............................ 556 674 338 122 NET ASSET VALUE PER SHARE: Class A shares............................ $ 7.95 $ 15.27 $ 7.55 $ 7.00 Class B shares............................ $ 7.91 $ 14.59 $ 7.41 $ 6.76 Class C shares............................ $ 7.91 $ 14.59 $ 7.41 $ 6.76 Class M shares............................ $ 7.91 $ 14.69 $ 7.43 $ 6.80 MAXIMUM OFFERING PRICE PER SHARE (3): Class A shares............................ $ 8.41 $ 16.16 $ 7.99 $ 7.41 Class M shares............................ $ 7.99 $ 14.84 $ 7.51 $ 6.86
153 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX CONSERVATIVE IDEX IDEX GABELLI IDEX IDEX GREAT IDEX GREAT ASSET FEDERATED GLOBAL GOLDMAN COMPANIES- COMPANIES- ALLOCATION TAX EXEMPT GROWTH SACHS GROWTH AMERICA(SM) GLOBAL(2) $ 47,837 $ 40,538 $ 29,717 $ 25,361 $ 122,309 $ 15,705 138 92 17,193 371 11,442 1,320 -- -- 5,072 -- 2,182 -- -- -- 76 -- -- -- 1,740 82 9 101 607 5 -- 532 12 -- 6 1 55 -- 59 23 115 4 1 -- -- -- -- 1 -- -- -- -- -- -- 1 3 10 2 11 -- -------------- -------------- -------------- -------------- -------------- -------------- 49,772 41,247 52,148 25,858 136,672 17,036 -------------- -------------- -------------- -------------- -------------- -------------- -- 526 227 -- -- 28 6 39 56 280 305 9 -- 17 15 12 64 -- 20 22 27 18 79 7 9 9 38 25 75 11 -- -- -- -- -- -- -- -- 5,072 -- 2,182 -- -- -- -- -- -- -- -- -- -- -- -- -- 14 21 24 20 41 10 -------------- -------------- -------------- -------------- -------------- -------------- 49 634 5,459 355 2,746 65 -------------- -------------- -------------- -------------- -------------- -------------- $ 49,723 $ 40,613 $ 46,689 $ 25,503 $ 133,926 $ 16,971 ============== ============== ============== ============== ============== ============== 50,554 40,128 75,635 40,283 170,007 21,999 98 48 1 (1) (3) -- (158) (1,016) (18,419) (6,886) (11,931) (3,012) (771) 1,453 (10,528) (7,893) (24,147) (2,016) -------------- -------------- -------------- -------------- -------------- -------------- $ 49,723 $ 40,613 $ 46,689 $ 25,503 $ 133,926 $ 16,971 -------------- -------------- -------------- -------------- -------------- -------------- $ 48,609 $ 39,084 $ 40,249 $ 33,254 $ 146,456 $ 17,721 ============== ============== ============== ============== ============== ============== 1,029 1,778 3,928 761 7,257 2,042 2,532 1,043 2,937 1,920 7,082 564 1,301 456 986 313 2,188 172 552 250 465 449 1,155 133 $ 9.22 $ 11.51 $ 5.66 $ 7.56 $ 7.65 $ 5.86 $ 9.18 $ 11.51 $ 5.57 $ 7.36 $ 7.52 $ 5.76 $ 9.18 $ 11.51 $ 5.57 $ 7.36 $ 7.52 $ 5.76 $ 9.18 $ 11.51 $ 5.58 $ 7.39 $ 7.54 $ 5.78 $ 9.76 $ 12.08 $ 5.99 $ 8.00 $ 8.10 $ 6.20 $ 9.27 $ 11.63 $ 5.64 $ 7.46 $ 7.62 $ 5.84
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) October 31, 2002 See notes to the Statements of Assets and Liabilities on page 158. The notes to the financial statements are an integral part of these statements. 154 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
All numbers (except per share amounts) IDEX GREAT IDEX IDEX IDEX JANUS in thousands COMPANIES- ISABELLE SMALL JANUS CAPITAL -------------------------------------- TECHNOLOGY(SM) CAP VALUE BALANCED APPRECIATION ASSETS: Investment securities, at market value (1)....................................... $ 12,762 $ 78,265 $ 361,690 $ 88,402 Cash (2).................................... 453 3,250 39,757 12,824 Collateral for securities on loan........... -- 14,427 46,484 17,970 Receivables: Investment securities sold................ -- 93 2,686 1,662 Shares of beneficial interest sold........ 49 5,448 593 19 Interest.................................. -- 2 2,990 7 Dividends................................. 1 93 248 19 Due from investment adviser............... 14 -- -- -- Unrealized appreciation on forward foreign currency contracts........................ -- -- -- -- Other....................................... -- 20 97 44 -------------- -------------- -------------- -------------- 13,279 101,598 454,545 120,947 -------------- -------------- -------------- -------------- LIABILITIES: Investment securities purchased............. -- 677 1,033 4,189 Accounts payable and accrued liabilities: Shares of beneficial interest redeemed.... 5 156 1,200 212 Management and advisory fees.............. -- 99 275 36 Distribution fees......................... 7 44 281 64 Transfer agent fees and expenses.......... 27 48 154 178 Due to custodian.......................... -- -- -- -- Payable for securities on loan.............. -- 14,427 46,484 17,970 Unrealized depreciation on forward foreign currency contracts........................ -- -- 4 -- Written options............................. -- -- -- -- Other....................................... 12 36 122 52 -------------- -------------- -------------- -------------- 51 15,487 49,553 22,701 -------------- -------------- -------------- -------------- NET ASSETS.................................... $ 13,228 $ 86,111 $ 404,992 $ 98,246 ============== ============== ============== ============== NET ASSETS CONSIST OF: Shares of beneficial interest, unlimited shares authorized......................... 34,072 107,109 475,428 421,976 Undistributed net investment income (loss).................................... (1) (1) 541 (14) Undistributed net realized gain (loss) from investments, futures/options contracts and foreign currency transactions............. (14,961) (2,776) (64,223) (310,966) Net unrealized appreciation (depreciation) of investments, futures/options contracts and on translation of assets and liabilities in foreign currencies......... (5,882) (18,221) (6,754) (12,750) -------------- -------------- -------------- -------------- NET ASSETS.................................... $ 13,228 $ 86,111 $ 404,992 $ 98,246 -------------- -------------- -------------- -------------- Investment securities, at cost.............. $ 18,644 $ 96,485 $ 368,440 $ 101,147 ============== ============== ============== ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING: Class A shares............................ 2,518 5,007 6,219 3,542 Class B shares............................ 1,738 2,715 13,197 4,268 Class C shares............................ 497 1,340 2,444 803 Class M shares............................ 474 465 3,108 957 Class T shares............................ -- -- -- -- NET ASSET VALUE PER SHARE: Class A shares............................ $ 2.56 $ 9.09 $ 16.23 $ 10.57 Class B shares............................ $ 2.50 $ 8.98 $ 16.22 $ 10.07 Class C shares............................ $ 2.50 $ 8.98 $ 16.22 $ 10.07 Class M shares............................ $ 2.51 $ 9.00 $ 16.22 $ 10.15 Class T shares............................ $ -- $ -- $ -- $ -- MAXIMUM OFFERING PRICE PER SHARE (3): Class A shares............................ $ 2.71 $ 9.62 $ 17.17 $ 11.19 Class M shares............................ $ 2.54 $ 9.09 $ 16.38 $ 10.25 Class T shares............................ $ -- $ -- $ -- $ --
155 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX JANUS IDEX IDEX IDEX JANUS IDEX IDEX LKCM FLEXIBLE JANUS JANUS GROWTH & JENNISON STRATEGIC INCOME GLOBAL GROWTH INCOME EQUITY OPPORTUNITY TOTAL RETURN $ 148,648 $ 490,189 $ 1,034,725 $ 30,967 $ 71,688 $ 53,818 14,582 36,341 158,192 8,155 4,868 45 31,864 71,971 156,969 2,870 15,128 2,788 930 2,049 4,634 33 482 -- 401 77 142 29 150 3 2,043 42 108 46 3 327 -- 1,222 389 32 49 50 -- -- -- -- -- -- -- 2,508 -- -- -- -- 37 187 554 4 29 12 -------------- -------------- -------------- -------------- -------------- -------------- 198,505 604,586 1,355,713 42,136 92,397 57,043 -------------- -------------- -------------- -------------- -------------- -------------- 3,507 1,073 2,626 179 499 -- 396 1,126 1,858 50 363 53 118 489 765 29 30 23 99 310 406 26 51 28 43 363 789 28 66 42 -- -- -- -- -- -- 31,864 71,971 156,969 2,870 15,128 2,788 16 4,849 -- -- -- -- -- -- -- -- -- -- 84 208 572 27 49 22 -------------- -------------- -------------- -------------- -------------- -------------- 36,127 80,389 163,985 3,209 16,186 2,956 -------------- -------------- -------------- -------------- -------------- -------------- $ 162,378 $ 524,197 $ 1,191,728 $ 38,927 $ 76,211 $ 54,087 ============== ============== ============== ============== ============== ============== 157,486 984,525 2,283,679 47,160 99,673 57,488 216 (94) (316) (1) (3) 134 (598) (388,754) (894,134) (5,194) (11,852) (1,365) 5,274 (71,480) (197,501) (3,038) (11,607) (2,170) -------------- -------------- -------------- -------------- -------------- -------------- $ 162,378 $ 524,197 $ 1,191,728 $ 38,927 $ 76,211 $ 54,087 -------------- -------------- -------------- -------------- -------------- -------------- $ 143,367 $ 559,345 $ 1,232,123 $ 34,006 $ 83,295 $ 55,986 ============== ============== ============== ============== ============== ============== 6,218 11,842 31,857 2,444 3,172 2,183 6,763 10,651 15,021 2,216 5,658 1,122 1,750 1,506 2,154 480 1,356 194 1,605 4,285 4,060 260 1,212 274 -- -- 22,461 -- -- -- $ 9.94 $ 19.06 $ 15.87 $ 7.26 $ 6.88 $ 14.34 $ 9.94 $ 18.14 $ 14.93 $ 7.16 $ 6.60 $ 14.33 $ 9.94 $ 18.14 $ 14.93 $ 7.16 $ 6.60 $ 14.33 $ 9.94 $ 18.18 $ 15.08 $ 7.17 $ 6.65 $ 14.33 $ -- $ -- $ 16.40 $ -- $ -- $ -- $ 10.44 $ 20.17 $ 16.79 $ 7.68 $ 7.28 $ 15.17 $ 10.04 $ 18.36 $ 15.23 $ 7.24 $ 6.72 $ 14.47 $ -- $ -- $ 17.92 $ -- $ -- $ --
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) October 31, 2002 See notes to the Statements of Assets and Liabilities on page 158. The notes to the financial statements are an integral part of these statements. 156 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
All numbers (except per share amounts) IDEX MODERATELY IDEX IDEX in thousands IDEX MODERATE AGGRESSIVE MUNDER PBHG MID -------------------------------------- ASSET ALLOCATION ASSET ALLOCATION NET50 CAP GROWTH ASSETS: Investment securities, at market value (1)....................................... $ 89,717 $ 81,358 $ 932 $ 42,035 Cash (2).................................... 900 903 69 4,205 Collateral for securities on loan........... -- -- -- 13,117 Receivables: Investment securities sold................ -- -- -- 945 Shares of beneficial interest sold........ 3,040 2,092 -- 153 Interest.................................. -- -- -- 2 Dividends................................. 79 47 -- 8 Due from investment adviser............... -- 4 7 4 Unrealized appreciation on forward foreign currency contracts........................ -- -- -- -- Other....................................... 1 -- 2 22 -------------- -------------- -------------- -------------- 93,737 84,404 1,010 60,491 -------------- -------------- -------------- -------------- LIABILITIES: Investment securities purchased............. -- -- -- 152 Accounts payable and accrued liabilities: Shares of beneficial interest redeemed.... 616 89 17 133 Management and advisory fees.............. 5 -- -- -- Distribution fees......................... 37 31 1 30 Transfer agent fees and expenses.......... 15 21 5 96 Due to custodian.......................... -- -- -- -- Payable for securities on loan.............. -- -- -- 13,117 Unrealized depreciation on forward foreign currency contracts........................ -- -- -- -- Written options............................. -- -- -- -- Other....................................... 9 11 21 40 -------------- -------------- -------------- -------------- 682 152 44 13,568 -------------- -------------- -------------- -------------- NET ASSETS.................................... $ 93,055 $ 84,252 $ 966 $ 46,923 ============== ============== ============== ============== NET ASSETS CONSIST OF: Shares of beneficial interest, unlimited shares authorized......................... 97,721 91,134 2,882 159,642 Undistributed net investment income (loss).................................... 94 (1) -- (3) Undistributed net realized gain (loss) from investments, futures/options contracts and foreign currency transactions............. (620) (1,241) (1,242) (114,679) Net unrealized appreciation (depreciation) of investments, futures/options contracts and on translation of assets and liabilities in foreign currencies......... (4,140) (5,640) (674) 1,963 -------------- -------------- -------------- -------------- NET ASSETS.................................... $ 93,055 $ 84,252 $ 966 $ 46,923 -------------- -------------- -------------- -------------- Investment securities, at cost.............. $ 93,857 $ 86,997 $ 1,606 $ 40,071 ============== ============== ============== ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING: Class A shares............................ 2,000 2,470 97 2,243 Class B shares............................ 4,472 3,990 159 3,079 Class C shares............................ 2,920 2,127 56 729 Class M shares............................ 1,276 1,513 19 425 NET ASSET VALUE PER SHARE: Class A shares............................ $ 8.76 $ 8.37 $ 2.96 $ 7.38 Class B shares............................ $ 8.71 $ 8.33 $ 2.90 $ 7.17 Class C shares............................ $ 8.71 $ 8.33 $ 2.90 $ 7.17 Class M shares............................ $ 8.72 $ 8.34 $ 2.91 $ 7.20 MAXIMUM OFFERING PRICE PER SHARE (3): Class A shares............................ $ 9.27 $ 8.86 $ 3.13 $ 7.81 Class M shares............................ $ 8.81 $ 8.42 $ 2.94 $ 7.27
157 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX PBHG IDEX IDEX IDEX IDEX IDEX T. ROWE TECHNOLOGY & PIMCO PROTECTED SALOMON SALOMON PRICE COMMUNICATIONS TOTAL RETURN PRINCIPAL STOCK ALL CAP INVESTORS VALUE HEALTH SCIENCES $ 15,149 $ 109,132 $ 64,795 $ 262,018 $ 62,676 $ 4,960 1,444 3,568 5,160 1,670 6,027 261 -- 1,915 -- 50,982 4,621 -- 631 1,030 -- -- -- 23 42 1,264 33 68 118 3 3 810 4 2 4 -- 11 -- 93 408 92 1 7 -- -- -- -- 2 -- -- -- -- -- -- 1 90 -- 59 5 1 -------------- -------------- -------------- -------------- -------------- -------------- 17,288 117,809 70,085 315,207 73,543 5,251 -------------- -------------- -------------- -------------- -------------- -------------- 297 27,780 -- 1,438 63 139 50 238 15 1,187 213 1 -- 58 103 150 42 -- 10 49 52 180 29 2 58 14 28 194 34 6 -- 1 -- -- -- -- -- 1,915 -- 50,982 4,621 -- -- -- -- -- -- -- -- 54 1,274 -- -- 39 15 24 17 120 22 17 -------------- -------------- -------------- -------------- -------------- -------------- 430 30,133 1,489 54,251 5,024 204 -------------- -------------- -------------- -------------- -------------- -------------- $ 16,858 $ 87,676 $ 68,596 $ 260,956 $ 68,519 $ 5,047 ============== ============== ============== ============== ============== ============== 124,311 86,050 68,669 396,847 79,942 5,429 (2) 106 -- (9) 63 -- (106,559) 1,261 4,895 (60,830) 400 (170) (892) 259 (4,968) (75,052) (11,886) (212) -------------- -------------- -------------- -------------- -------------- -------------- $ 16,858 $ 87,676 $ 68,596 $ 260,956 $ 68,519 $ 5,047 -------------- -------------- -------------- -------------- -------------- -------------- $ 16,040 $ 109,099 $ 70,159 $ 337,069 $ 74,562 $ 5,159 ============== ============== ============== ============== ============== ============== 5,200 3,951 1,037 5,565 4,598 459 9,009 2,995 4,715 12,964 1,725 92 2,375 1,131 697 3,497 232 37 1,243 420 407 3,702 231 21 $ 0.97 $ 10.32 $ 10.01 $ 10.34 $ 10.21 $ 8.28 $ 0.93 $ 10.32 $ 10.01 $ 10.08 $ 9.84 $ 8.24 $ 0.93 $ 10.32 $ 10.01 $ 10.08 $ 9.84 $ 8.24 $ 0.94 $ 10.32 $ 10.01 $ 10.12 $ 9.90 $ 8.24 $ 1.03 $ 10.83 $ 10.59 $ 10.94 $ 10.80 $ 8.76 $ 0.95 $ 10.42 $ 10.11 $ 10.22 $ 10.00 $ 8.32
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) October 31, 2002 The notes to the financial statements are an integral part of these statements. 158 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
All numbers (except per share amounts) IDEX T. ROWE IDEX T. ROWE IDEX TRANSAMERICA IDEX TRANSAMERICA in thousands PRICE PRICE TAX- CONSERVATIVE CONVERTIBLE -------------------------------------- SMALL CAP EFFICIENT GROWTH HIGH-YIELD BOND SECURITIES ASSETS: Investment securities, at market value (1)..................................... $ 18,808 $ 38,107 $ 94,735 $ 12,384 Cash (2).................................. 119 783 9,708 338 Collateral for securities on loan......... 4,831 1,464 9,079 -- Receivables: Investment securities sold.............. 45 -- -- 279 Shares of beneficial interest sold...... 4 1 728 30 Interest................................ -- -- 2,451 48 Dividends............................... 2 40 -- 28 Due from investment adviser............. -- -- -- -- Unrealized appreciation on forward foreign currency contracts...................... -- -- -- -- Other..................................... 6 5 31 -- -------------- -------------- -------------- -------------- 23,815 40,400 116,732 13,107 -------------- -------------- -------------- -------------- LIABILITIES: Investment securities purchased........... -- 479 3,311 500 Accounts payable and accrued liabilities: Shares of beneficial interest redeemed.............................. 43 85 221 -- Management and advisory fees............ 4 22 52 3 Distribution fees....................... 12 20 54 5 Transfer agent fees and expenses........ 36 23 31 4 Due to custodian........................ -- -- -- -- Payable for securities on loan............ 4,831 1,464 9,079 -- Unrealized depreciation on forward foreign currency contracts...................... -- -- -- -- Written options........................... -- -- -- -- Other..................................... 20 19 42 10 -------------- -------------- -------------- -------------- 4,946 2,112 12,790 522 -------------- -------------- -------------- -------------- NET ASSETS.................................. $ 18,869 $ 38,288 $ 103,942 $ 12,585 ============== ============== ============== ============== NET ASSETS CONSIST OF: Shares of beneficial interest, unlimited shares authorized....................... 30,056 46,093 128,598 13,069 Undistributed net investment income (loss).................................. -- (1) 12 32 Undistributed net realized gain (loss) from investments, futures/options contracts and foreign currency transactions............................ (6,578) (2,735) (8,966) (377) Net unrealized appreciation (depreciation) of investments, futures/options contracts and on translation of assets and liabilities in foreign currencies... (4,609) (5,069) (15,702) (139) -------------- -------------- -------------- -------------- NET ASSETS.................................. $ 18,869 $ 38,288 $ 103,942 $ 12,585 -------------- -------------- -------------- -------------- Investment securities, at cost............ $ 23,417 $ 43,176 $ 110,433 $ 12,524 ============== ============== ============== ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING: Class A shares.......................... 828 2,642 7,611 1,087 Class B shares.......................... 1,161 1,490 3,955 121 Class C shares.......................... 259 366 800 100 Class M shares.......................... 202 260 749 33 NET ASSET VALUE PER SHARE: Class A shares.......................... $ 7.83 $ 8.09 $ 7.93 $ 9.39 Class B shares.......................... $ 7.63 $ 7.99 $ 7.93 $ 9.38 Class C shares.......................... $ 7.63 $ 7.99 $ 7.92 $ 9.38 Class M shares.......................... $ 7.66 $ 8.00 $ 7.93 $ 9.38 MAXIMUM OFFERING PRICE PER SHARE (3): Class A shares.......................... $ 8.29 $ 8.56 $ 8.33 $ 9.86 Class M shares.......................... $ 7.74 $ 8.08 $ 8.01 $ 9.47
(1) Investment securities in IDEX Aggressive Asset Allocation, IDEX Conservative Asset Allocation, IDEX Moderate Asset Allocation and IDEX Moderately Aggressive Asset Allocation are considered affiliated investments. (2) Cash balance includes foreign cash as follows: IDEX American Century International $14 with a cost of $14 IDEX Gabelli Global Growth $121 with a cost of $120 IDEX PIMCO Total Return $213 with a cost of $211 (3) Includes the maximum selling commission (represented as a percentage of offering price) which is reduced on certain levels of sales as set forth in the Prospectus. Net asset value per share for Class B and Class C shares represents offering price. The redemption price for Class B and Class M shares equals net asset less any applicable contingent deferred sales charge. 159 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX TRANSAMERICA IDEX IDEX TRANSAMERICA GROWTH TRANSAMERICA TRANSAMERICA EQUITY OPPORTUNITIES MONEY MARKET VALUE BALANCED $ 26,696 $ 18,743 $ 241,392 $ 28,609 3,752 2,278 379 2,407 -- -- -- 5,459 -- 213 -- 166 9 8 3,801 2 2 1 31 197 10 11 -- 47 -- -- -- -- -- -- -- -- 1 -- 3 12 -------------- -------------- -------------- -------------- 30,470 21,254 245,606 36,899 -------------- -------------- -------------- -------------- 886 103 -- 125 13 38 1,638 53 22 6 -- 8 10 10 132 19 15 17 86 33 -- -- -- -- -- -- -- 5,459 -- -- -- -- -- -- -- 1,066 16 18 117 29 -------------- -------------- -------------- -------------- 962 192 1,973 6,792 -------------- -------------- -------------- -------------- $ 29,508 $ 21,062 $ 243,633 $ 30,107 ============== ============== ============== ============== 35,939 29,435 243,548 38,669 (1) 1 85 71 (3,893) (7,770) -- (5,021) (2,537) (604) -- (3,612) -------------- -------------- -------------- -------------- $ 29,508 $ 21,062 $ 243,633 $ 30,107 -------------- -------------- -------------- -------------- $ 29,233 $ 19,347 $ 241,392 $ 31,790 ============== ============== ============== ============== 4,554 2,640 131,950 1,137 506 1,255 81,683 1,243 170 334 20,139 413 136 193 9,858 315 $ 5.52 $ 4.81 $ 1.00 $ 9.69 $ 5.40 $ 4.70 $ 1.00 $ 9.69 $ 5.40 $ 4.70 $ 1.00 $ 9.69 $ 5.42 $ 4.72 $ 1.00 $ 9.69 $ 5.84 $ 5.09 $ -- $ 10.25 $ 5.47 $ 4.77 $ 1.01 $ 9.79
The notes to the financial statements are an integral part of these statements. See notes to the Statements of Operations on page 166. 160 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 STATEMENTS OF OPERATIONS For the year or period ended October 31, 2002
IDEX AGGRESSIVE IDEX ALGER IDEX AMERICAN All numbers (except per share amounts) in thousands ASSET AGGRESSIVE CENTURY - --------------------------------------------------- ALLOCATION GROWTH INCOME & GROWTH INVESTMENT INCOME: Interest......................................... $ 1 $ 190 $ 3 Dividends (1).................................... -- 593 606 Less withholding taxes on foreign dividends.... -- (2) (3) -------------- -------------- -------------- 1 781 606 -------------- -------------- -------------- EXPENSES: Management and advisory fees..................... 10 1,392 285 Transfer agent fees and expenses................. 45 1,448 170 Custody and accounting fees and expenses......... 19 56 45 Administration expenses.......................... 11 10 10 Registration fees................................ 62 47 53 Trustees fees and expenses....................... 1 11 2 Professional fees................................ 6 19 28 Proxy fees....................................... -- 139 65 Other............................................ 9 189 22 Distribution and service fees: Class A........................................ -- 301 31 Class B........................................ 23 634 162 Class C........................................ 13 96 49 Class M........................................ 7 136 24 -------------- -------------- -------------- Gross Expenses..................................... 206 4,478 946 Less fee waivers and reimbursements by the investment adviser............................. (118) (1,229) (206) -------------- -------------- -------------- Net Expenses..................................... 88 3,249 740 -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS)....................... (87) (2,468) (134) -------------- -------------- -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (716) (48,994) (3,697) Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Foreign currency transactions.................. -- -- -- -------------- -------------- -------------- (716) (48,994) (3,697) -------------- -------------- -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... (2,958) 8,004 (3,257) Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Translation of assets and liabilities denominated in foreign currency.............. -- -- -- -------------- -------------- -------------- (2,958) 8,004 (3,257) -------------- -------------- -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (3,674) (40,990) (6,954) -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ (3,761) $ (43,458) $ (7,088) ============== ============== ============== IDEX AMERICAN All numbers (except per share amounts) in thousands CENTURY - --------------------------------------------------- INTERNATIONAL INVESTMENT INCOME: Interest......................................... $ 4 Dividends (1).................................... 346 Less withholding taxes on foreign dividends.... (39) -------------- 311 -------------- EXPENSES: Management and advisory fees..................... 159 Transfer agent fees and expenses................. 105 Custody and accounting fees and expenses... 156 Administration expenses.......................... 11 Registration fees................................ 53 Trustees fees and expenses....................... 1 Professional fees................................ 27 Proxy fees....................................... 38 Other............................................ 11 Distribution and service fees: Class A........................................ 30 Class B........................................ 59 Class C........................................ 14 Class M........................................ 9 -------------- Gross Expenses..................................... 673 Less fee waivers and reimbursements by the investment adviser............................. (306) -------------- Net Expenses..................................... 367 -------------- NET INVESTMENT INCOME (LOSS)....................... (56) -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (3,291) Futures contracts.............................. -- Written option contracts....................... -- Foreign currency transactions.................. (17) -------------- (3,308) -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... (249) Futures contracts.............................. -- Written option contracts....................... -- Translation of assets and liabilities denominated in foreign currency.............. 1 -------------- (248) -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (3,556) -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ (3,612) ==============
161 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX CONSERVATIVE IDEX IDEX GABELLI IDEX IDEX IDEX ASSET FEDERATED GLOBAL GOLDMAN GREAT COMPANIES- GREAT COMPANIES- ALLOCATION TAX EXEMPT GROWTH SACHS GROWTH AMERICA(SM) GLOBAL(2) $ 1 $ 1,651 $ 82 $ 8 $ 77 $ 8 210 -- 496 376 1,720 168 -- -- (29) (2) -- (14) -------------- -------------- -------------- -------------- -------------- -------------- 211 1,651 549 382 1,797 162 -------------- -------------- -------------- -------------- -------------- -------------- 12 199 516 263 1,067 109 32 52 291 156 468 69 19 35 66 36 44 29 11 11 11 10 10 9 63 47 26 52 42 38 1 1 3 2 9 1 7 10 11 11 19 9 -- 3 22 10 24 4 3 9 46 21 60 10 -- 70 66 28 180 26 34 79 210 167 556 40 19 29 82 41 169 12 8 15 32 36 86 9 -------------- -------------- -------------- -------------- -------------- -------------- 209 560 1,382 833 2,734 365 (93) (36) (271) (105) (146) (115) -------------- -------------- -------------- -------------- -------------- -------------- 116 524 1,111 728 2,588 250 -------------- -------------- -------------- -------------- -------------- -------------- 95 1,127 (562) (346) (791) (88) -------------- -------------- -------------- -------------- -------------- -------------- (158) 26 (14,546) (4,975) (7,169) (1,164) -- -- -- -- -- -- -- -- -- -- -- -- -- -- (94) -- -- -- -------------- -------------- -------------- -------------- -------------- -------------- (158) 26 (14,640) (4,975) (7,169) (1,164) -------------- -------------- -------------- -------------- -------------- -------------- (771) 73 5,917 (1,760) (18,467) (740) -- -- -- -- -- -- -- -- -- -- -- -- -- -- 16 -- -- -- -------------- -------------- -------------- -------------- -------------- -------------- (771) 73 5,933 (1,760) (18,467) (740) -------------- -------------- -------------- -------------- -------------- -------------- (929) 99 (8,707) (6,735) (25,636) (1,904) -------------- -------------- -------------- -------------- -------------- -------------- $ (834) $ 1,226 $ (9,269) $ (7,081) $ (26,427) $ (1,992) ============== ============== ============== ============== ============== ==============
STATEMENTS OF OPERATIONS (CONTINUED) For the year or period ended October 31, 2002 The notes to the financial statements are an integral part of these statements. See notes to the Statements of Operations on page 166. 162 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX IDEX All numbers (except per share amounts) in thousands GREAT COMPANIES- ISABELLE SMALL JANUS - --------------------------------------------------- TECHNOLOGY(SM) CAP VALUE BALANCED INVESTMENT INCOME: Interest......................................... $ 5 $ 104 $ 11,985 Dividends (1).................................... 23 416 3,539 Less withholding taxes on foreign dividends.... -- -- (28) -------------- -------------- -------------- 28 520 15,496 -------------- -------------- -------------- EXPENSES: Management and advisory fees..................... 146 532 4,485 Transfer agent fees and expenses................. 161 257 1,208 Custody and accounting fees and expenses......... 29 49 119 Administration expenses.......................... 10 9 11 Registration fees................................ 27 64 58 Trustees fees and expenses....................... 1 5 31 Professional fees................................ 10 11 37 Proxy fees....................................... 10 5 85 Other............................................ 19 32 169 Distribution and service fees: Class A........................................ 29 79 415 Class B........................................ 65 215 2,418 Class C........................................ 18 107 454 Class M........................................ 15 37 535 -------------- -------------- -------------- Gross Expenses................................... 540 1,402 10,025 Less fee waivers and reimbursements by the investment adviser............................. (193) (78) -- -------------- -------------- -------------- Net Expenses..................................... 347 1,324 10,025 -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS)....................... (319) (804) 5,471 -------------- -------------- -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (8,549) (2,706) (38,491) Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Foreign currency transactions.................. -- -- (1) -------------- -------------- -------------- (8,549) (2,706) (38,492) -------------- -------------- -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... 2,243 (17,075) 8,448 Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Translation of assets and liabilities denominated in foreign currency.............. -- -- (3) -------------- -------------- -------------- 2,243 (17,075) 8,445 -------------- -------------- -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (6,306) (19,781) (30,047) -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ (6,625) $ (20,585) $ (24,576) ============== ============== ============== IDEX JANUS All numbers (except per share amounts) in thousands CAPITAL - --------------------------------------------------- APPRECIATION INVESTMENT INCOME: Interest......................................... $ 308 Dividends (1).................................... 315 Less withholding taxes on foreign dividends.... -- -------------- 623 -------------- EXPENSES: Management and advisory fees..................... 1,401 Transfer agent fees and expenses................. 1,418 Custody and accounting fees and expenses......... 59 Administration expenses.......................... 9 Registration fees................................ 51 Trustees fees and expenses....................... 9 Professional fees................................ 18 Proxy fees....................................... 122 Other............................................ 182 Distribution and service fees: Class A........................................ 186 Class B........................................ 616 Class C........................................ 121 Class M........................................ 133 -------------- Gross Expenses................................... 4,325 Less fee waivers and reimbursements by the investment adviser............................. (1,155) -------------- Net Expenses..................................... 3,170 -------------- NET INVESTMENT INCOME (LOSS)....................... (2,547) -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (80,483) Futures contracts.............................. -- Written option contracts....................... -- Foreign currency transactions.................. -- -------------- (80,483) -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... 46,797 Futures contracts.............................. -- Written option contracts....................... -- Translation of assets and liabilities denominated in foreign currency.............. -- -------------- 46,797 -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (33,686) -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ (36,233) ==============
163 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX JANUS IDEX IDEX IDEX JANUS IDEX IDEX LKCM FLEXIBLE JANUS JANUS GROWTH & JENNISON STRATEGIC INCOME GLOBAL GROWTH INCOME EQUITY OPPORTUNITY TOTAL RETURN $ 6,387 $ 995 $ 2,572 $ 139 $ 125 $ 1,372 9 10,598 6,375 314 847 702 -- (751) (71) (1) (12) -- -------------- -------------- -------------- -------------- -------------- -------------- 6,396 10,842 8,876 452 960 2,074 -------------- -------------- -------------- -------------- -------------- -------------- 959 7,673 14,653 304 672 503 247 2,807 5,696 146 366 279 69 559 205 54 53 38 10 11 10 10 9 10 59 56 90 33 49 42 8 50 55 2 6 4 15 58 123 10 14 11 12 200 475 8 19 24 38 384 788 19 47 35 132 1,142 2,470 31 82 126 477 2,794 3,239 161 417 189 118 431 488 35 98 31 128 1,094 865 19 81 44 -------------- -------------- -------------- -------------- -------------- -------------- 2,272 17,259 29,157 832 1,913 1,336 -- -- -- (104) (60) (191) -------------- -------------- -------------- -------------- -------------- -------------- 2,272 17,259 29,157 728 1,853 1,145 -------------- -------------- -------------- -------------- -------------- -------------- 4,124 (6,417) (20,281) (276) (893) 929 -------------- -------------- -------------- -------------- -------------- -------------- (240) (198,283) (243,179) (4,380) (8,820) (1,365) (232) -- -- -- -- -- -- -- -- -- -- -- 2 719 (145) -- -- -- -------------- -------------- -------------- -------------- -------------- -------------- (470) (197,564) (243,324) (4,380) (8,820) (1,365) -------------- -------------- -------------- -------------- -------------- -------------- 1,878 63,381 (50,031) (1,190) (7,380) (3,157) 11 -- -- -- -- -- -- -- -- -- -- -- (16) (3,227) 145 -- -- -- -------------- -------------- -------------- -------------- -------------- -------------- 1,873 60,154 (49,886) (1,190) (7,380) (3,157) -------------- -------------- -------------- -------------- -------------- -------------- 1,403 (137,410) (293,210) (5,570) (16,200) (4,522) -------------- -------------- -------------- -------------- -------------- -------------- $ 5,527 $ (143,827) $ (313,491) $ (5,846) $ (17,093) $ (3,593) ============== ============== ============== ============== ============== ==============
STATEMENTS OF OPERATIONS (CONTINUED) For the year or period ended October 31, 2002 The notes to the financial statements are an integral part of these statements. See notes to the Statements of Operations on page 166. 164 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX MODERATELY IDEX All numbers (except per share amounts) in thousands IDEX MODERATE AGGRESSIVE MUNDER - --------------------------------------------------- ASSET ALLOCATION ASSET ALLOCATION NET50 INVESTMENT INCOME: Interest......................................... $ 3 $ 2 $ -- Dividends (1).................................... 327 216 1 Less withholding taxes on foreign dividends.... -- -- -- -------------- -------------- -------------- 330 218 1 -------------- -------------- -------------- EXPENSES: Management and advisory fees..................... 25 25 15 Transfer agent fees and expenses................. 63 88 24 Custody and accounting fees and expenses......... 21 20 29 Administration expenses.......................... 10 11 10 Registration fees................................ 62 61 35 Trustees fees and expenses....................... 2 2 -- Professional fees................................ 7 7 8 Proxy fees....................................... -- -- 2 Other............................................ 9 12 4 Distribution and service fees: Class A........................................ -- -- 2 Class B........................................ 71 67 7 Class C........................................ 43 34 2 Class M........................................ 17 21 1 -------------- -------------- -------------- Gross Expenses................................... 330 348 139 Less fee waivers and reimbursements by the investment adviser............................. (83) (112) (104) -------------- -------------- -------------- Net Expenses..................................... 247 236 35 -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS)....................... 83 (18) (34) -------------- -------------- -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (620) (1,241) (603) Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Foreign currency transactions.................. -- -- -- -------------- -------------- -------------- (620) (1,241) (603) -------------- -------------- -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... (4,140) (5,640) 53 Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Translation of assets and liabilities denominated in foreign currency.............. -- -- -- -------------- -------------- -------------- (4,140) (5,640) 53 -------------- -------------- -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (4,760) (6,881) (550) -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATION................................... $ (4,677) $ (6,899) $ (584) ============== ============== ============== IDEX All numbers (except per share amounts) in thousands PBHG MID - --------------------------------------------------- CAP GROWTH INVESTMENT INCOME: Interest......................................... $ 50 Dividends (1).................................... 48 Less withholding taxes on foreign dividends.... -- -------------- 98 -------------- EXPENSES: Management and advisory fees..................... 521 Transfer agent fees and expenses................. 743 Custody and accounting fees and expenses......... 50 Administration expenses.......................... 9 Registration fees................................ 58 Trustees fees and expenses....................... 4 Professional fees................................ 15 Proxy fees....................................... 71 Other............................................ 93 Distribution and service fees: Class A........................................ 77 Class B........................................ 308 Class C........................................ 76 Class M........................................ 42 -------------- Gross Expenses................................... 2,067 Less fee waivers and reimbursements by the investment adviser............................. (665) -------------- Net Expenses..................................... 1,402 -------------- NET INVESTMENT INCOME (LOSS)....................... (1,304) -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (16,341) Futures contracts.............................. -- Written option contracts....................... -- Foreign currency transactions.................. -- -------------- (16,341) -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... 4,123 Futures contracts.............................. -- Written option contracts....................... -- Translation of assets and liabilities denominated in foreign currency.............. -- -------------- 4,123 -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (12,218) -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATION................................... $ (13,522) ==============
165 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX IDEX IDEX IDEX IDEX T. ROWE PBHG TECHNOLOGY PIMCO PROTECTED SALOMON SALOMON PRICE & COMMUNICATIONS TOTAL RETURN PRINCIPAL STOCK ALL CAP INVESTORS VALUE HEALTH SCIENCES $ 11 $ 928 $ 25 $ 2,297 $ 80 $ 2 29 -- 327 3,228 915 6 (2) -- -- (49) (10) -- -------------- -------------- -------------- -------------- -------------- -------------- 38 928 352 5,476 985 8 -------------- -------------- -------------- -------------- -------------- -------------- 288 166 295 2,977 381 18 434 48 84 1,375 208 17 42 40 10 85 39 40 9 12 11 9 9 9 44 65 76 73 50 58 2 2 1 24 3 -- 11 7 18 32 11 6 49 -- -- 79 13 -- 54 6 22 178 28 3 30 38 12 289 74 4 144 83 156 1,827 208 3 36 31 23 519 27 2 20 12 12 493 27 1 -------------- -------------- -------------- -------------- -------------- -------------- 1,163 510 720 7,960 1,078 161 (479) (37) (85) (376) (170) (122) -------------- -------------- -------------- -------------- -------------- -------------- 684 473 635 7,584 908 39 -------------- -------------- -------------- -------------- -------------- -------------- (646) 455 (283) (2,108) 77 (31) -------------- -------------- -------------- -------------- -------------- -------------- (24,856) 731 2,830 (54,552) 396 (186) -- 535 -- -- -- -- -- (3) 2,348 (3,393) -- 16 -- (2) -- -- -- -- -------------- -------------- -------------- -------------- -------------- -------------- (24,856) 1,261 5,178 (57,945) 396 (170) -------------- -------------- -------------- -------------- -------------- -------------- 9,412 33 (5,364) (41,481) (10,705) (199) -- 206 -- -- -- -- -- 18 396 (292) -- (13) -- 2 -- -- -- -- -------------- -------------- -------------- -------------- -------------- -------------- 9,412 259 (4,968) (41,773) (10,705) (212) -------------- -------------- -------------- -------------- -------------- -------------- (15,444) 1,520 210 (99,718) (10,309) (382) -------------- -------------- -------------- -------------- -------------- -------------- $ (16,090) $ 1,975 $ (73) $ (101,826) $ (10,232) $ (413) ============== ============== ============== ============== ============== ==============
STATEMENTS OF OPERATIONS (CONTINUED) For the year or period ended October 31, 2002 The notes to the financial statements are an integral part of these statements. 166 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX IDEX T. ROWE PRICE TRANSAMERICA All numbers (except per share amounts) in thousands T. ROWE PRICE TAX-EFFICIENT CONSERVATIVE - --------------------------------------------------- SMALL CAP GROWTH HIGH-YIELD BOND INVESTMENT INCOME: Interest......................................... $ 7 $ 13 $ 7,986 Dividends (1).................................... 31 460 163 Less withholding taxes on foreign dividends.... -- (3) -- -------------- -------------- -------------- 38 470 8,149 -------------- -------------- -------------- EXPENSES: Management and advisory fees..................... 187 263 618 Transfer agent fees and expenses................. 205 153 235 Custody and accounting fees and expenses......... 43 36 44 Administration expenses.......................... 10 10 9 Registration fees................................ 47 47 58 Trustees fees and expenses....................... 2 2 5 Professional fees................................ 8 10 12 Proxy fees....................................... 15 10 15 Other............................................ 26 21 33 Distribution and service fees: Class A........................................ 28 42 188 Class B........................................ 110 160 340 Class C........................................ 23 35 78 Class M........................................ 18 25 66 -------------- -------------- -------------- Gross Expenses................................... 722 814 1,701 Less fee waivers and reimbursements by the investment adviser............................. (219) (94) -- -------------- -------------- -------------- Net Expenses..................................... 503 720 1,701 -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS)....................... (465) (250) 6,448 -------------- -------------- -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (4,374) (1,926) (5,400) Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Foreign currency transactions.................. -- -- -- -------------- -------------- -------------- (4,374) (1,926) (5,400) -------------- -------------- -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... (148) (3,554) (10,432) Futures contracts.............................. -- -- -- Written option contracts....................... -- -- -- Translation of assets and liabilities denominated in foreign currency.............. -- -- -- -------------- -------------- -------------- (148) (3,554) (10,432) -------------- -------------- -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (4,522) (5,480) (15,832) -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ (4,987) $ (5,730) $ (9,384) ============== ============== ============== IDEX TRANSAMERICA All numbers (except per share amounts) in thousands CONVERTIBLE - --------------------------------------------------- SECURITIES INVESTMENT INCOME: Interest......................................... $ 82 Dividends (1).................................... 84 Less withholding taxes on foreign dividends.... -- -------------- 166 -------------- EXPENSES: Management and advisory fees..................... 30 Transfer agent fees and expenses................. 11 Custody and accounting fees and expenses......... 20 Administration expenses.......................... 11 Registration fees................................ 54 Trustees fees and expenses....................... -- Professional fees................................ 6 Proxy fees....................................... -- Other............................................ 3 Distribution and service fees: Class A........................................ 11 Class B........................................ 5 Class C........................................ 2 Class M........................................ 1 -------------- Gross Expenses................................... 154 Less fee waivers and reimbursements by the investment adviser............................. (82) -------------- Net Expenses..................................... 72 -------------- NET INVESTMENT INCOME (LOSS)....................... 94 -------------- REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investment securities (1)...................... (377) Futures contracts.............................. -- Written option contracts....................... -- Foreign currency transactions.................. -- -------------- (377) -------------- UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSLATION: Net unrealized appreciation (depreciation) on: Investment securities.......................... (139) Futures contracts.............................. -- Written option contracts....................... -- Translation of assets and liabilities denominated in foreign currency.............. -- -------------- (139) -------------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES/OPTIONS CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS...... (516) -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ (422) ==============
(1) Dividends and Realized Gain (Loss) from Investment Securities for IDEX Aggressive Asset Allocation, IDEX Conservative Asset Allocation, IDEX Moderate Asset Allocation and IDEX Moderately Aggressive Asset Allocation are from investment in shares of affiliated investment companies. 167 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX TRANSAMERICA IDEX IDEX TRANSAMERICA GROWTH TRANSAMERICA TRANSAMERICA EQUITY OPPORTUNITIES MONEY MARKET VALUE BALANCED $ 10 $ 16 $ 1,798 $ 604 70 47 -- 543 -- -- -- (1) -------------- -------------- -------------- -------------- 80 63 1,798 1,146 -------------- -------------- -------------- -------------- 117 128 406 283 62 101 405 196 33 29 39 4 10 10 11 9 45 48 108 49 1 1 10 2 11 12 12 12 4 9 -- -- 8 14 38 24 32 25 200 47 33 61 322 156 13 17 89 47 9 10 40 37 -------------- -------------- -------------- -------------- 378 465 1,680 866 (87) (128) (543) (128) -------------- -------------- -------------- -------------- 291 337 1,137 738 -------------- -------------- -------------- -------------- (211) (274) 661 408 -------------- -------------- -------------- -------------- (1,308) (1,294) -- (5,682) -- -- -- -- -- -- -- 661 -- -- -- -- -------------- -------------- -------------- -------------- (1,308) (1,294) -- (5,021) -------------- -------------- -------------- -------------- (1,066) 162 -- (575) -- -- -- -- -- -- -- (430) -- -- -- -- -------------- -------------- -------------- -------------- (1,066) 162 -- (1,005) -------------- -------------- -------------- -------------- (2,374) (1,132) -- (6,026) -------------- -------------- -------------- -------------- $ (2,585) $ (1,406) $ 661 $ (5,618) ============== ============== ============== ==============
See notes to the Statements of Changes in Net Assets on page 178. The notes to the financial statements are an integral part of these statements. 168 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 STATEMENTS OF CHANGES IN NET ASSETS For the year or period ended October 31,
IDEX IDEX ALGER IDEX AMERICAN All numbers in thousands AGGRESSIVE AGGRESSIVE CENTURY ------------------------ ASSET ALLOCATION GROWTH INCOME & GROWTH INCREASE (DECREASE) IN NET ASSETS FROM: 2002 2002 2001 2002 2001 OPERATIONS: Net investment income (loss)........... $ (87) $ (2,468) $ (2,181) $ (134) $ (137) Net realized gain (loss) on investment securities, futures and options contracts and foreign currency....... (716) (48,994) (87,674) (3,697) (1,442) Net unrealized appreciation (depreciation) on investment securities, futures and options contracts and foreign currency translation.......................... (2,958) 8,004 (25,999) (3,257) (2,405) ----------- ----------- ----------- ----------- ----------- (3,761) (43,458) (115,854) (7,088) (3,984) ----------- ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.............................. -- -- -- -- -- Class B.............................. -- -- -- -- -- Class C.............................. -- -- -- -- -- Class M.............................. -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- From net realized gains: Class A.............................. -- -- (3,038) -- -- Class B.............................. -- -- (2,411) -- -- Class C.............................. -- -- (361) -- -- Class M.............................. -- -- (681) -- -- ----------- ----------- ----------- ----------- ----------- -- -- (6,491) -- -- ----------- ----------- ----------- ----------- ----------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares sold (1) Class A.............................. 10,067 293,385 600,592 13,320 4,541 Class B.............................. 12,627 7,548 20,564 12,717 12,994 Class C.............................. 9,331 2,935 5,755 3,660 3,169 Class M.............................. 5,274 1,339 4,712 1,945 2,281 ----------- ----------- ----------- ----------- ----------- 37,299 305,207 631,623 31,642 22,985 ----------- ----------- ----------- ----------- ----------- Dividends and distributions reinvested Class A.............................. -- -- 2,998 -- -- Class B.............................. -- -- 2,361 -- -- Class C.............................. -- -- 337 -- -- Class M.............................. -- -- 662 -- -- ----------- ----------- ----------- ----------- ----------- -- -- 6,358 -- -- ----------- ----------- ----------- ----------- ----------- Cost of shares repurchased Class A.............................. (607) (318,028) (605,508) (8,387) (1,360) Class B.............................. (757) (18,403) (21,691) (6,476) (2,997) Class C.............................. (656) (3,913) (5,306) (2,502) (651) Class M.............................. (347) (5,821) (8,174) (1,009) (519) ----------- ----------- ----------- ----------- ----------- (2,367) (346,165) (640,679) (18,374) (5,527) ----------- ----------- ----------- ----------- ----------- 34,932 (40,958) (2,698) 13,268 17,458 ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS... 31,171 (84,416) (125,043) 6,180 13,474 ----------- ----------- ----------- ----------- ----------- NET ASSETS: Beginning of period.................... -- 205,185 330,228 22,901 9,427 ----------- ----------- ----------- ----------- ----------- End of period.......................... $ 31,171 $ 120,769 $ 205,185 $ 29,081 $ 22,901 =========== =========== =========== =========== =========== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS):................................ $ -- $ (17) $ (15) $ -- $ -- =========== =========== =========== =========== =========== SHARES OF BENEFICIAL INTEREST ACTIVITY Shares issued during the period (1) Class A.............................. 1,126 15,257 24,945 1,467 455 Class B.............................. 1,416 402 855 1,404 1,309 Class C.............................. 1,085 156 233 407 332 Class M.............................. 598 69 191 215 230 ----------- ----------- ----------- ----------- ----------- 4,225 15,884 26,224 3,493 2,326 ----------- ----------- ----------- ----------- ----------- Shares reinvested from distributions Class A.............................. -- -- 105 -- -- Class B.............................. -- -- 85 -- -- Class C.............................. -- -- 12 -- -- Class M.............................. -- -- 24 -- -- ----------- ----------- ----------- ----------- ----------- -- -- 226 -- -- ----------- ----------- ----------- ----------- ----------- Shares redeemed during the period Class A.............................. (73) (16,547) (25,008) (1,009) (141) Class B.............................. (94) (1,043) (957) (792) (309) Class C.............................. (80) (215) (235) (295) (67) Class M.............................. (42) (321) (348) (120) (56) ----------- ----------- ----------- ----------- ----------- (289) (18,126) (26,548) (2,216) (573) ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING DURING THE PERIOD.......... 3,936 (2,242) (98) 1,277 1,753 =========== =========== =========== =========== ===========
169 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX AMERICAN CONSERVATIVE IDEX CENTURY ASSET FEDERATED INTERNATIONAL ALLOCATION TAX EXEMPT 2002 2001 2002 2002 $ (56) $ 19 $ 95 $ 1,127 (3,308) (4,577) (158) 26 (248) 288 (771) 73 - ----------- ----------- ----------- ----------- (3,612) (4,270) (834) 1,226 - ----------- ----------- ----------- ----------- -- -- -- (718) -- -- -- (233) -- -- -- (84) -- -- -- (82) - ----------- ----------- ----------- ----------- -- -- -- (1,117) - ----------- ----------- ----------- ----------- -- (753) -- -- -- (523) -- -- -- (96) -- -- -- (96) -- -- - ----------- ----------- ----------- ----------- -- (1,468) -- -- - ----------- ----------- ----------- ----------- 23,660 33,300 10,560 14,209 3,848 4,566 25,680 8,223 3,910 924 12,651 5,904 2,488 681 5,738 1,219 - ----------- ----------- ----------- ----------- 33,906 39,471 54,629 29,555 - ----------- ----------- ----------- ----------- -- 739 -- 524 -- 436 -- 151 -- 96 -- 68 -- 96 -- 65 - ----------- ----------- ----------- ----------- -- 1,367 -- 808 - ----------- ----------- ----------- ----------- (11,860) (33,170) (883) (17,500) (2,375) (2,156) (2,125) (2,677) (3,242) (263) (495) (2,376) (2,383) (342) (569) (821) - ----------- ----------- ----------- ----------- (19,860) (35,931) (4,072) (23,374) - ----------- ----------- ----------- ----------- 14,046 4,907 50,557 6,989 - ----------- ----------- ----------- ----------- 10,434 (831) 49,723 7,098 - ----------- ----------- ----------- ----------- 12,022 12,853 -- 33,515 - ----------- ----------- ----------- ----------- $ 22,456 $ 12,022 $ 49,723 $ 40,613 =========== =========== =========== =========== $ (1) $ (4) $ 98 $ 48 =========== =========== =========== =========== 3,095 3,361 1,124 1,245 483 449 2,765 718 519 83 1,355 516 329 66 615 105 - ----------- ----------- ----------- ----------- 4,426 3,959 5,859 2,584 - ----------- ----------- ----------- ----------- -- 64 -- 46 -- 39 -- 13 -- 8 -- 6 -- 9 -- 6 - ----------- ----------- ----------- ----------- -- 120 -- 71 - ----------- ----------- ----------- ----------- (1,585) (3,350) (95) (1,539) (309) (225) (233) (236) (430) (26) (54) (209) (314) (35) (63) (72) - ----------- ----------- ----------- ----------- (2,638) (3,636) (445) (2,056) - ----------- ----------- ----------- ----------- 1,788 443 5,414 599 =========== =========== =========== =========== IDEX IDEX IDEX FEDERATED GABELLI GOLDMAN TAX EXEMPT GLOBAL GROWTH SACHS GROWTH 2001 2002 2001 2002 2001 $ 966 $ (562) $ (85) $ (346) $ (253) 112 (14,640) (3,821) (4,975) (1,805) 1,072 5,933 (16,613) (1,760) (6,925) ----------- ----------- ----------- ----------- ----------- 2,150 (9,269) (20,519) (7,081) (8,983) ----------- ----------- ----------- ----------- ----------- (718) -- (42) -- -- (118) -- (30) -- -- (54) -- (23) -- -- (78) -- (10) -- -- ----------- ----------- ----------- ----------- ----------- (968) -- (105) -- -- ----------- ----------- ----------- ----------- ----------- -- -- (1) -- (78) -- -- (1) -- (103) -- -- (1) -- (74) -- -- (1) -- (35) ----------- ----------- ----------- ----------- ----------- -- -- (4) -- (290) ----------- ----------- ----------- ----------- ----------- 19,873 30,181 22,980 7,433 5,256 5,641 5,744 26,980 8,534 13,020 4,287 3,716 8,168 1,391 2,118 863 719 5,036 2,713 2,380 ----------- ----------- ----------- ----------- ----------- 30,664 40,360 63,164 20,071 22,774 ----------- ----------- ----------- ----------- ----------- 497 -- 42 -- 76 73 -- 30 -- 97 54 -- 23 -- 72 64 -- 10 -- 34 ----------- ----------- ----------- ----------- ----------- 688 -- 105 -- 279 ----------- ----------- ----------- ----------- ----------- (15,061) (20,482) (5,183) (7,170) (2,177) (1,323) (6,162) (4,731) (5,885) (2,159) (2,942) (5,669) (2,530) (3,076) (1,929) (629) (1,485) (1,555) (1,718) (1,108) ----------- ----------- ----------- ----------- ----------- (19,955) (33,798) (13,999) (17,849) (7,373) ----------- ----------- ----------- ----------- ----------- 11,397 6,562 49,270 2,222 15,680 ----------- ----------- ----------- ----------- ----------- 12,579 (2,707) 28,642 (4,859) 6,407 ----------- ----------- ----------- ----------- ----------- 20,936 49,396 20,754 30,362 23,955 ----------- ----------- ----------- ----------- ----------- $ 33,515 $ 46,689 $ 49,396 $ 25,503 $ 30,362 =========== =========== =========== =========== =========== $ 38 $ 1 $ (1) $ (1) $ -- =========== =========== =========== =========== =========== 1,756 4,691 2,558 816 493 501 827 2,989 963 1,259 384 567 892 157 196 77 102 546 304 225 ----------- ----------- ----------- ----------- ----------- 2,718 6,187 6,985 2,240 2,173 ----------- ----------- ----------- ----------- ----------- 44 -- 4 -- 6 7 -- 3 -- 8 5 -- 2 -- 6 6 -- 1 -- 3 ----------- ----------- ----------- ----------- ----------- 62 -- 10 -- 23 ----------- ----------- ----------- ----------- ----------- (1,333) (3,139) (632) (864) (215) (118) (944) (590) (733) (214) (264) (892) (326) (373) (196) (57) (222) (185) (213) (110) ----------- ----------- ----------- ----------- ----------- (1,772) (5,197) (1,733) (2,183) (735) ----------- ----------- ----------- ----------- ----------- 1,008 990 5,262 57 1,461 =========== =========== =========== =========== ===========
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the year or period ended October 31, See notes to the Statements of Changes in Net Assets on page 178. The notes to the financial statements are an integral part of these statements. 170 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX All numbers in thousands GREAT COMPANIES GREAT COMPANIES ------------------------ AMERICA(SM) GLOBAL(2) INCREASE (DECREASE) IN NET ASSETS FROM: 2002 2001 2002 2001 OPERATIONS: Net investment income (loss)............................ $ (791) $ (353) $ (88) $ (57) Net realized gain (loss) on investment securities, futures and options contracts and foreign currency.............................................. (7,169) (4,742) (1,164) (1,830) Netunrealized appreciation (depreciation) on investment securities, futures and options contracts and foreign currency translation.................................. (18,467) (6,870) (740) (1,301) ----------- ----------- ----------- ----------- (26,427) (11,965) (1,992) (3,188) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A............................................... -- -- -- -- Class B............................................... -- -- -- -- Class C............................................... -- -- -- -- Class M............................................... -- -- -- -- ----------- ----------- ----------- ----------- -- -- -- -- ----------- ----------- ----------- ----------- From net realized gains: Class A............................................... -- -- -- (9) Class B............................................... -- -- -- (3) Class C............................................... -- -- -- (2) Class M............................................... -- -- -- (2) ----------- ----------- ----------- ----------- -- -- -- (16) ----------- ----------- ----------- ----------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares sold Class A............................................... 43,241 36,777 12,939 6,330 Class B............................................... 37,954 44,226 1,933 4,099 Class C............................................... 13,762 12,243 593 1,258 Class M............................................... 7,063 8,115 469 517 ----------- ----------- ----------- ----------- 102,020 101,361 15,934 12,204 ----------- ----------- ----------- ----------- Dividends and distributions reinvested Class A............................................... -- -- -- 8 Class B............................................... -- -- -- 3 Class C............................................... -- -- -- 1 Class M............................................... -- -- -- 3 ----------- ----------- ----------- ----------- -- -- -- 15 ----------- ----------- ----------- ----------- Cost of shares repurchased Class A............................................... (16,357) (6,956) (5,236) (1,589) Class B............................................... (14,179) (6,616) (1,452) (425) Class C............................................... (5,739) (1,745) (541) (125) Class M............................................... (3,754) (1,552) (361) (198) ----------- ----------- ----------- ----------- (40,029) (16,869) (7,590) (2,337) ----------- ----------- ----------- ----------- 61,991 84,492 8,344 9,882 ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS.................... 35,564 72,527 6,352 6,678 ----------- ----------- ----------- ----------- NET ASSETS: Beginning of period..................................... 98,362 25,835 10,619 3,941 ----------- ----------- ----------- ----------- End of period........................................... $ 133,926 $ 98,362 $ 16,971 $ 10,619 =========== =========== =========== =========== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS):.............. $ (3) $ -- $ -- $ -- =========== =========== =========== =========== SHARES OF BENEFICIAL INTEREST ACTIVITY Shares issued during the period Class A............................................... 4,955 3,760 2,029 800 Class B............................................... 4,256 4,585 281 512 Class C............................................... 1,547 1,264 87 148 Class M............................................... 790 828 66 62 ----------- ----------- ----------- ----------- 11,548 10,437 2,463 1,522 ----------- ----------- ----------- ----------- Shares reinvested from distributions Class A............................................... -- -- -- 1 Class B............................................... -- -- -- -- Class C............................................... -- -- -- -- Class M............................................... -- -- -- -- ----------- ----------- ----------- ----------- -- -- -- 1 ----------- ----------- ----------- ----------- Shares redeemed during the period Class A............................................... (1,977) (745) (783) (227) Class B............................................... (1,767) (734) (233) (55) Class C............................................... (706) (189) (84) (15) Class M............................................... (456) (172) (56) (24) ----------- ----------- ----------- ----------- (4,906) (1,840) (1,156) (321) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING DURING THE PERIOD.................................................. 6,642 8,597 1,307 1,202 =========== =========== =========== ===========
171 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX IDEX IDEX JANUS GREAT COMPANIES ISABELLE SMALL JANUS CAPITAL TECHNOLOGY(SM) CAP VALUE BALANCED APPRECIATION 2002 2001 2002 2001 2002 2001 2002 2001 $ (319) $ (234) $ (804) $ (38) $ 5,471 $ 7,364 $ (2,547) $ (5,100) (8,549) (6,206) (2,706) (70) (38,492) (25,911) (80,483) (200,683) 2,243 (6,767) (17,075) (1,146) 8,445 (32,498) 46,797 (54,878) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (6,625) (13,207) (20,585) (1,254) (24,576) (51,045) (36,233) (260,661) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- (1,905) (2,489) -- -- -- -- -- -- (2,364) (3,106) -- -- -- -- -- -- (444) (597) -- -- -- -- -- -- (639) (944) -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- (5,352) (7,136) -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- (1,869) -- -- -- -- -- -- -- (3,337) -- -- -- -- -- -- -- (632) -- -- -- -- -- -- -- (982) -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- (6,820) -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 5,713 9,186 58,353 7,572 23,874 38,046 16,445 34,934 2,928 10,267 34,191 8,751 55,027 91,142 6,298 34,512 919 2,244 14,164 3,942 12,548 23,732 2,424 9,906 835 2,594 6,626 1,660 9,351 23,910 1,440 10,010 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 10,395 24,291 113,334 21,925 100,800 176,830 26,607 89,362 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 1,812 4,190 -- -- -- -- -- -- 2,199 6,117 -- -- -- -- -- -- 405 1,167 -- -- -- -- -- -- 591 1,802 -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 5,007 13,276 -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (3,274) (2,342) (10,551) (560) (43,731) (31,988) (29,624) (51,583) (2,231) (2,905) (10,106) (661) (70,703) (50,784) (22,805) (35,267) (722) (588) (2,668) (197) (17,781) (13,763) (6,580) (13,260) (552) (782) (2,458) (108) (20,468) (18,075) (7,002) (13,286) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (6,779) (6,617) (25,783) (1,526) (152,683) (114,610) (66,011) (113,396) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 3,616 17,674 87,551 20,399 (46,876) 75,496 (39,404) (24,034) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (3,009) 4,467 66,966 19,145 (76,804) 10,495 (75,637) (284,695) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 16,237 11,770 19,145 -- 481,796 471,301 173,883 458,578 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 13,228 $ 16,237 $ 86,111 $ 19,145 $ 404,992 $ 481,796 $ 98,246 $ 173,883 =========== =========== =========== =========== =========== =========== =========== =========== $ (1) $ -- $ (1) $ -- $ 541 $ 454 $ (14) $ (12) =========== =========== =========== =========== =========== =========== =========== =========== 1,560 1,688 5,351 691 1,398 2,067 1,333 1,639 788 1,902 2,951 819 3,210 4,934 508 1,603 235 423 1,250 372 729 1,281 199 451 223 510 562 150 547 1,283 112 438 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,806 4,523 10,114 2,032 5,884 9,565 2,152 4,131 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 106 227 -- -- -- -- -- -- 128 328 -- -- -- -- -- -- 24 62 -- -- -- -- -- -- 34 97 -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 292 714 -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (1,000) (527) (989) (46) (2,585) (1,751) (2,434) (2,513) (709) (659) (990) (65) (4,211) (2,806) (1,927) (1,902) (208) (135) (262) (20) (1,049) (754) (554) (671) (170) (179) (242) (5) (1,210) (1,000) (574) (659) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (2,087) (1,500) (2,483) (136) (9,055) (6,311) (5,489) (5,745) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 719 3,023 7,631 1,896 (2,879) 3,968 (3,337) (1,614) =========== =========== =========== =========== =========== =========== =========== ===========
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the year or period ended October 31, See notes to the Statements of Changes in Net Assets on page 178. The notes to the financial statements are an integral part of these statements. 172 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX JANUS IDEX All numbers in thousands FLEXIBLE JANUS ------------------------ INCOME GLOBAL INCREASE (DECREASE) IN NET ASSETS FROM: 2002 2001 2002 2001 OPERATIONS: Net investment income (loss)............................ $ 4,124 $ 3,015 $ (6,417) $ (7,779) Net realized gain (loss) on investment securities, futures and options contracts and foreign currency.... (470) 1,603 (197,564) (175,361) Net unrealized appreciation (depreciation) on investment securities, futures and options contracts and foreign currency translation.................................. 1,873 3,597 60,154 (435,580) ----------- ----------- ----------- ----------- 5,527 8,215 (143,827) (618,720) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A............................................... (1,541) (1,086) -- -- Class B............................................... (1,687) (965) -- -- Class C............................................... (417) (394) -- -- Class M............................................... (528) (427) -- -- Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- (4,173) (2,872) -- -- ----------- ----------- ----------- ----------- From net realized gains: Class A............................................... (173) -- -- (44,723) Class B............................................... (251) -- -- (38,573) Class C............................................... (53) -- -- (7,191) Class M............................................... (89) -- -- (19,155) Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- (566) -- -- (109,642) ----------- ----------- ----------- ----------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares sold Class A............................................... 60,787 30,189 16,741 37,641 Class B............................................... 43,395 32,631 8,893 21,613 Class C............................................... 14,467 6,096 2,168 6,239 Class M............................................... 7,842 9,088 2,658 8,652 Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- 126,491 78,004 30,460 74,145 ----------- ----------- ----------- ----------- Dividends and distribution reinvested Class A............................................... 1,308 885 -- 43,377 Class B............................................... 1,377 784 -- 37,124 Class C............................................... 349 374 -- 6,955 Class M............................................... 484 392 -- 18,251 Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- 3,518 2,435 -- 105,707 ----------- ----------- ----------- ----------- Cost of shares repurchased Class A............................................... (30,444) (19,801) (105,301) (156,574) Class B............................................... (18,221) (8,984) (82,205) (95,604) Class C............................................... (8,785) (4,149) (21,413) (28,733) Class M............................................... (6,995) (1,749) (52,127) (59,167) Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- (64,445) (34,683) (261,046) (340,078) ----------- ----------- ----------- ----------- 65,564 45,756 (230,586) (160,226) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS.................... 66,352 51,099 (374,413) (888,588) ----------- ----------- ----------- ----------- NET ASSETS: Beginning of period..................................... 96,026 44,927 898,610 1,787,198 ----------- ----------- ----------- ----------- End of period........................................... $ 162,378 $ 96,026 $ 524,197 $ 898,610 =========== =========== =========== =========== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS):.............. $ 216 $ 140 $ (94) $ (81) =========== =========== =========== =========== SHARES OF BENEFICIAL INTEREST ACTIVITY Shares issued during the period Class A............................................... 6,285 3,145 744 1,182 Class B............................................... 4,452 3,387 399 720 Class C............................................... 1,492 634 97 205 Class M............................................... 806 945 118 287 Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- 13,035 8,111 1,358 2,394 ----------- ----------- ----------- ----------- Shares reinvested from distributions Class A............................................... 135 93 -- 1,208 Class B............................................... 143 82 -- 1,070 Class C............................................... 36 39 -- 200 Class M............................................... 50 41 -- 527 Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- 364 255 -- 3,005 ----------- ----------- ----------- ----------- Shares redeemed during the period Class A............................................... (3,123) (2,061) (4,726) (5,213) Class B............................................... (1,880) (934) (3,863) (3,450) Class C............................................... (904) (429) (977) (997) Class M............................................... (727) (182) (2,391) (2,132) Class T............................................... -- -- -- -- ----------- ----------- ----------- ----------- (6,634) (3,606) (11,957) (11,792) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING DURING THE PERIOD.................................................. 6,765 4,760 (10,599) (6,393) =========== =========== =========== ===========
173 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX JANUS IDEX IDEX LKCM JANUS GROWTH & JENNISON EQUITY STRATEGIC GROWTH INCOME OPPORTUNITY TOTAL RETURN 2002 2001 2002 2001 2002 2001 2002 2001 $ (20,281) $ (24,790) $ (276) $ (20) $ (893) $ (163) $ 929 $ 1,058 (243,324) (647,761) (4,380) (814) (8,820) (2,373) (1,365) 66 (49,886) (1,418,589) (1,190) (1,848) (7,380) (2,904) (3,157) (6,546) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (313,491) (2,091,140) (5,846) (2,682) (17,093) (5,440) (3,593) (5,422) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- (641) (647) -- -- -- -- -- -- (214) (196) -- -- -- -- -- -- (35) (28) -- -- -- -- -- -- (62) (68) -- -- -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- (952) (939) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- (123,035) -- -- -- (423) (39) (221) -- (58,254) -- -- -- (355) (20) (107) -- (9,219) -- -- -- (29) (3) (14) -- (20,920) -- -- -- (84) (6) (38) -- (85,636) -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- (297,064) -- -- -- (891) (68) (380) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 72,760 147,113 17,574 5,070 21,526 18,042 5,720 15,658 33,355 120,178 11,751 14,586 27,698 34,883 3,555 5,819 8,945 26,448 3,030 3,517 8,934 8,693 1,424 1,433 7,095 31,461 1,169 2,386 7,158 6,298 665 747 27,028 47,448 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 149,183 372,648 33,524 25,559 65,316 67,916 11,364 23,657 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- 119,067 -- -- -- 420 655 840 -- 55,874 -- -- -- 337 226 293 -- 8,849 -- -- -- 29 37 41 -- 20,237 -- -- -- 84 66 102 -- 83,537 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- 287,564 -- -- -- 870 984 1,276 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (206,576) (232,442) (1,938) (680) (12,762) (3,041) (9,723) (16,184) (101,412) (133,091) (4,711) (1,201) (13,882) (3,520) (5,525) (4,374) (22,310) (29,103) (1,382) (535) (5,074) (1,163) (1,421) (739) (43,151) (61,347) (652) (529) (3,091) (781) (2,004) (1,713) (110,925) (119,898) -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (484,374) (575,881) (8,683) (2,945) (34,809) (8,505) (18,673) (23,010) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (335,191) 84,331 24,841 22,614 30,507 60,281 (6,325) 1,923 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (648,682) (2,303,873) 18,995 19,932 13,414 53,950 (10,938) (4,818) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1,840,410 4,144,283 19,932 -- 62,797 8,847 65,025 69,843 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $1,191,728 $ 1,840,410 $ 38,927 $ 19,932 $ 76,211 $ 62,797 $ 54,087 $ 65,025 =========== =========== =========== =========== =========== =========== =========== =========== $ (316) $ (288) $ (1) $ -- $ (3) $ (1) $ 134 $ 158 =========== =========== =========== =========== =========== =========== =========== =========== 3,665 5,213 2,228 536 2,604 2,101 371 970 1,747 4,250 1,408 1,555 3,439 4,155 230 360 450 904 362 352 1,118 1,039 92 88 363 1,058 139 263 864 758 43 46 1,349 1,625 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 7,574 13,050 4,137 2,706 8,025 8,053 736 1,464 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- 3,267 -- -- -- 54 42 52 -- 1,605 -- -- -- 45 15 18 -- 254 -- -- -- 4 2 3 -- 577 -- -- -- 11 4 6 -- 2,238 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- 7,941 -- -- -- 114 63 79 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (11,039) (8,680) (244) (76) (1,629) (363) (639) (1,017) (5,779) (5,224) (610) (137) (1,887) (442) (368) (272) (1,235) (1,109) (177) (57) (690) (142) (93) (46) (2,361) (2,366) (81) (61) (419) (96) (132) (106) (5,930) (4,353) -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (26,344) (21,732) (1,112) (331) (4,625) (1,043) (1,232) (1,441) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (18,770) (741) 3,025 2,375 3,400 7,124 (433) 102 =========== =========== =========== =========== =========== =========== =========== ===========
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the year or period ended October 31, See notes to the Statements of Changes in Net Assets on page 178. The notes to the financial statements are an integral part of these statements. 174 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX MODERATELY MODERATE AGGRESSIVE IDEX All numbers in thousands ASSET ASSET MUNDER ------------------------ ALLOCATION ALLOCATION NET50 INCREASE (DECREASE) IN NET ASSETS FROM: 2002 2002 2002 2001 OPERATIONS: Net investment income (loss)............................ $ 83 $ (18) $ (34) $ (18) Net realized gain (loss) on investment securities, futures and options contracts and foreign currency.... (620) (1,241) (603) (639) Net unrealized appreciation (depreciation) on investment securities, futures and options contracts and foreign currency translation.................................. (4,140) (5,640) 53 (727) ----------- ----------- ----------- ----------- (4,677) (6,899) (584) (1,384) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A............................................... -- -- -- -- Class B............................................... -- -- -- -- Class C............................................... -- -- -- -- Class M............................................... -- -- -- -- ----------- ----------- ----------- ----------- -- -- -- -- ----------- ----------- ----------- ----------- From net realized gains: Class A............................................... -- -- -- -- Class B............................................... -- -- -- -- Class C............................................... -- -- -- -- Class M............................................... -- -- -- -- ----------- ----------- ----------- ----------- -- -- -- -- ----------- ----------- ----------- ----------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares sold Class A............................................... 20,382 23,598 263 1,117 Class B............................................... 43,878 38,467 299 1,634 Class C............................................... 28,947 21,710 130 283 Class M............................................... 12,877 14,344 15 180 ----------- ----------- ----------- ----------- 106,084 98,119 707 3,214 ----------- ----------- ----------- ----------- Dividends and distributions reinvested Class A............................................... -- -- -- -- Class B............................................... -- -- -- -- Class C............................................... -- -- -- -- Class M............................................... -- -- -- -- ----------- ----------- ----------- ----------- -- -- -- -- ----------- ----------- ----------- ----------- Cost of shares repurchased Class A............................................... (1,985) (1,413) (285) (117) Class B............................................... (2,810) (2,297) (340) (170) Class C............................................... (2,406) (2,531) (55) (6) Class M............................................... (1,151) (727) (13) (1) ----------- ----------- ----------- ----------- (8,352) (6,968) (693) (294) ----------- ----------- ----------- ----------- 97,732 91,151 14 2,920 ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS.................... 93,055 84,252 (570) 1,536 ----------- ----------- ----------- ----------- NET ASSETS: Beginning of period..................................... -- -- 1,536 -- ----------- ----------- ----------- ----------- End of period........................................... $ 93,055 $ 84,252 $ 966 $ 1,536 =========== =========== =========== =========== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS):.............. $ 94 $ (1) $ -- $ -- =========== =========== =========== =========== SHARES OF BENEFICIAL INTEREST ACTIVITY Shares issued during the period Class A............................................... 2,226 2,640 62 144 Class B............................................... 4,793 4,266 66 213 Class C............................................... 3,190 2,434 27 46 Class M............................................... 1,409 1,599 4 20 ----------- ----------- ----------- ----------- 11,618 10,939 159 423 ----------- ----------- ----------- ----------- Shares reinvested from distributions Class A............................................... -- -- -- -- Class B............................................... -- -- -- -- Class C............................................... -- -- -- -- Class M............................................... -- -- -- -- ----------- ----------- ----------- ----------- -- -- -- -- ----------- ----------- ----------- ----------- Shares redeemed during the period Class A............................................... (226) (170) (88) (21) Class B............................................... (321) (276) (84) (36) Class C............................................... (270) (307) (16) (1) Class M............................................... (133) (86) (5) -- ----------- ----------- ----------- ----------- (950) (839) (193) (58) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING DURING THE PERIOD.................................................. 10,668 10,100 (34) 365 =========== =========== =========== ===========
175 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX IDEX IDEX IDEX PBHG MID CAP PBHG TECHNOLOGY PIMCO PROTECTED SALOMON CAP GROWTH & COMMUNICATIONS TOTAL RETURN PRINCIPAL STOCK ALL CAP 2002 2001 2002 2001 2002 2002 2002 2001 $ (1,304) $ (1,363) $ (646) $ (858) $ 455 $ (283) $ (2,108) $ 646 (16,341) (95,422) (24,856) (74,598) 1,261 5,178 (57,945) 82 4,123 2,865 9,412 (596) 259 (4,968) (41,773) (35,870) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (13,522) (93,920) (16,090) (76,052) 1,975 (73) (101,826) (35,142) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- (205) -- -- -- -- -- -- -- (100) -- -- -- -- -- -- -- (38) -- -- -- -- -- -- -- (17) -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- (360) -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- (816) (858) -- -- -- -- -- -- (1,809) (1,384) -- -- -- -- -- -- (508) (447) -- -- -- -- -- -- (573) (447) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- (3,706) (3,136) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 10,716 20,399 4,918 12,333 44,137 10,820 43,149 75,907 5,413 27,363 4,363 19,902 33,741 48,436 76,368 170,929 3,175 7,972 2,550 4,835 13,400 7,097 26,084 48,047 1,464 3,554 509 2,649 5,159 4,100 17,215 52,600 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 20,768 59,288 12,340 39,719 96,437 70,453 162,816 347,483 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 199 -- 753 847 -- -- -- -- 82 -- 1,663 1,325 -- -- -- -- 33 -- 490 442 -- -- -- -- 16 -- 520 416 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 330 -- 3,426 3,030 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (13,492) (14,511) (4,551) (7,252) (4,312) (431) (41,366) (15,862) (10,908) (18,019) (4,158) (7,244) (3,479) (1,200) (61,846) (24,526) (4,987) (5,393) (2,411) (2,769) (1,984) (128) (22,540) (7,682) (3,002) (4,111) (804) (2,079) (931) (25) (18,060) (5,345) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (32,389) (42,034) (11,924) (19,344) (10,706) (1,784) (143,812) (53,415) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (11,621) 17,254 416 20,375 86,061 68,669 22,430 297,098 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (25,143) (76,666) (15,674) (55,677) 87,676 68,596 (83,102) 258,820 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 72,066 148,732 32,532 88,209 -- -- 344,058 85,238 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 46,923 $ 72,066 $ 16,858 $ 32,532 $ 87,676 $ 68,596 $ 260,956 $ 344,058 =========== =========== =========== =========== =========== =========== =========== =========== $ (3) $ (2) $ (2) $ (1) $ 106 $ -- $ (9) $ 654 =========== =========== =========== =========== =========== =========== =========== =========== 1,183 1,426 3,094 3,752 4,358 1,082 3,144 5,109 602 1,939 2,688 5,792 3,331 4,841 5,624 11,627 356 579 1,532 1,412 1,323 710 1,918 3,272 179 237 305 760 510 410 1,257 3,563 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,320 4,181 7,619 11,716 9,522 7,043 11,943 23,571 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 20 -- 53 59 -- -- -- -- 8 -- 118 93 -- -- -- -- 3 -- 35 31 -- -- -- -- 2 -- 37 29 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 33 -- 243 212 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (1,533) (1,166) (3,203) (2,417) (427) (45) (3,337) (1,112) (1,282) (1,464) (2,972) (2,464) (344) (126) (5,247) (1,739) (577) (446) (1,484) (830) (195) (13) (1,913) (541) (360) (340) (555) (656) (92) (3) (1,510) (375) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (3,752) (3,416) (8,214) (6,367) (1,058) (187) (12,007) (3,767) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (1,432) 765 (595) 5,349 8,497 6,856 179 20,016 =========== =========== =========== =========== =========== =========== =========== ===========
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the year or period ended October 31, See notes to the Statements of Changes in Net Assets on page 178. The notes to the financial statements are an integral part of these statements. 176 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX T. ROWE IDEX T. ROWE All numbers in thousands SALOMON PRICE PRICE ------------------------ INVESTORS VALUE HEALTH SCIENCES SMALL CAP INCREASE (DECREASE) IN NET ASSETS FROM: 2002 2001 2002 2002 2001 OPERATIONS: Net investment income (loss).......... $ 77 $ 20 $ (31) $ (465) $ (355) Net realized gain (loss) on investment securities, futures and options contracts and foreign currency...... 396 1,114 (170) (4,374) (2,130) Net unrealized appreciation (depreciation) on investment securities, futures and options contracts and foreign currency translation......................... (10,705) (3,205) (212) (148) (4,619) ----------- ----------- ----------- ----------- ----------- (10,232) (2,071) (413) (4,987) (7,104) ----------- ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A............................. -- -- -- -- -- Class B............................. -- -- -- -- -- Class C............................. -- -- -- -- -- Class M............................. -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- From net realized gains: Class A............................. (279) (4) -- -- (9) Class B............................. (472) (6) -- -- (9) Class C............................. (55) (1) -- -- (2) Class M............................. (78) (1) -- -- (3) ----------- ----------- ----------- ----------- ----------- (884) (12) -- -- (23) ----------- ----------- ----------- ----------- ----------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares sold Class A............................. 45,626 8,301 4,157 6,591 5,188 Class B............................. 9,096 15,361 985 5,590 6,768 Class C............................. 2,830 2,550 418 1,472 2,933 Class M............................. 1,216 1,934 208 630 900 ----------- ----------- ----------- ----------- ----------- 58,768 28,146 5,768 14,283 15,789 ----------- ----------- ----------- ----------- ----------- Dividends and distributions reinvested Class A............................. 271 4 -- -- 8 Class B............................. 443 5 -- -- 9 Class C............................. 53 -- -- -- 2 Class M............................. 76 1 -- -- 3 ----------- ----------- ----------- ----------- ----------- 843 10 -- -- 22 ----------- ----------- ----------- ----------- ----------- Cost of shares repurchased Class A............................. (5,758) (4,021) (129) (5,379) (3,829) Class B............................. (8,071) (4,561) (118) (3,855) (2,313) Class C............................. (2,219) (1,210) (60) (932) (1,959) Class M............................. (1,799) (891) (1) (928) (412) ----------- ----------- ----------- ----------- ----------- (17,847) (10,683) (308) (11,094) (8,513) ----------- ----------- ----------- ----------- ----------- 41,764 17,473 5,460 3,189 7,298 ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS................................ 30,648 15,390 5,047 (1,798) 171 ----------- ----------- ----------- ----------- ----------- NET ASSETS: Beginning of period................... 37,871 22,481 -- 20,667 20,496 ----------- ----------- ----------- ----------- ----------- End of period......................... $ 68,519 $ 37,871 $ 5,047 $ 18,869 $ 20,667 =========== =========== =========== =========== =========== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS):............................... $ 63 $ 23 $ -- $ -- $ -- =========== =========== =========== =========== =========== SHARES OF BENEFICIAL INTEREST ACTIVITY Shares issued during the period Class A............................. 4,098 615 474 663 466 Class B............................. 762 1,163 106 572 623 Class C............................. 240 189 44 151 269 Class M............................. 103 145 21 65 80 ----------- ----------- ----------- ----------- ----------- 5,203 2,112 645 1,451 1,438 ----------- ----------- ----------- ----------- ----------- Shares reinvested from distributions Class A............................. 21 -- -- -- 1 Class B............................. 35 -- -- -- 1 Class C............................. 4 -- -- -- -- Class M............................. 6 -- -- -- -- ----------- ----------- ----------- ----------- ----------- 66 -- -- -- 2 ----------- ----------- ----------- ----------- ----------- Shares redeemed during the period Class A............................. (491) (298) (15) (582) (347) Class B............................. (715) (348) (14) (433) (224) Class C............................. (199) (89) (7) (101) (185) Class M............................. (153) (68) -- (95) (39) ----------- ----------- ----------- ----------- ----------- (1,558) (803) (36) (1,211) (795) ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING DURING THE PERIOD......... 3,711 1,309 609 240 645 =========== =========== =========== =========== ===========
177 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX IDEX IDEX TRANSAMERICA TRANSAMERICA IDEX IDEX TRANSAMERICA T. ROWE PRICE CONSERVATIVE CONVERTIBLE TRANSAMERICA GROWTH TAX-EFFICIENT GROWTH HIGH-YIELD BOND SECURITIES EQUITY OPPORTUNITIES 2002 2001 2002 2001 2002 2002 2001 2002 2001 $ (250) $ 3 $ 6,448 $ 6,137 $ 94 $ (211) $ (139) $ (274) $ (164) (1,926) (242) (5,400) (1,525) (377) (1,308) (2,513) (1,294) (6,252) (3,554) (2,950) (10,432) 929 (139) (1,066) (1,611) 162 (39) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (5,730) (3,189) (9,384) 5,541 (422) (2,585) (4,263) (1,406) (6,455) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- (10) (3,645) (3,917) (55) -- -- -- -- -- -- (2,090) (1,525) (5) -- -- -- -- -- -- (482) (255) (3) -- -- -- -- -- (1) (459) (423) (1) -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- (11) (6,676) (6,120) (64) -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (4) -- -- -- -- -- -- -- -- (8) -- -- -- -- -- -- -- -- (2) -- -- -- -- -- -- -- -- (1) -- -- -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (15) -- -- -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 18,342 5,656 38,187 27,197 10,852 25,376 1,917 13,110 3,869 4,876 11,852 15,891 30,059 1,469 1,357 3,386 3,651 4,063 1,368 2,499 7,572 8,634 1,054 620 1,253 943 1,247 602 2,066 2,479 5,688 359 340 500 296 450 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 25,188 22,073 64,129 71,578 13,734 27,693 7,056 18,000 9,629 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 4 10 2,915 3,063 55 -- -- -- -- 7 -- 1,419 1,138 5 -- -- -- -- 2 -- 333 203 3 -- -- -- -- 1 -- 300 283 1 -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 14 10 4,967 4,687 64 -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (3,710) (1,707) (23,048) (28,711) (321) (1,293) (682) (3,315) (1,764) (5,604) (2,305) (16,144) (9,167) (271) (1,146) (1,542) (1,833) (1,489) (1,260) (627) (8,655) (1,494) (94) (843) (393) (845) (434) (954) (785) (3,745) (2,227) (41) (250) (224) (563) (349) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (11,528) (5,424) (51,592) (41,599) (727) (3,532) (2,841) (6,556) (4,036) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 13,674 16,659 17,504 34,666 13,071 24,161 4,215 11,444 5,593 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 7,929 13,459 1,444 34,087 12,585 21,576 (48) 10,038 (862) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 30,359 16,900 102,498 68,411 -- 7,932 7,980 11,024 11,886 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 38,288 $ 30,359 $ 103,942 $ 102,498 $ 12,585 $ 29,508 $ 7,932 $ 21,062 $ 11,024 =========== =========== =========== =========== =========== =========== =========== =========== =========== $ (1) $ 3 $ 12 $ 182 $ 32 $ (1) $ -- $ 1 $ 2 =========== =========== =========== =========== =========== =========== =========== =========== =========== 2,160 551 4,469 2,895 1,115 4,332 220 2,468 684 498 1,152 1,842 3,193 149 214 411 687 706 147 239 864 920 110 107 151 177 208 61 201 283 603 37 51 60 55 72 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,866 2,143 7,458 7,611 1,411 4,704 842 3,387 1,670 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- 1 341 328 6 -- -- -- -- 1 -- 165 122 1 -- -- -- -- -- -- 38 22 -- -- -- -- -- -- -- 35 30 -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1 1 579 502 7 -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (414) (169) (2,678) (3,074) (34) (209) (89) (620) (320) (643) (233) (1,883) (979) (29) (196) (204) (385) (257) (141) (61) (995) (160) (10) (147) (52) (166) (82) (105) (77) (433) (236) (4) (41) (30) (109) (66) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (1,303) (540) (5,989) (4,449) (77) (593) (375) (1,280) (725) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1,564 1,604 2,048 3,664 1,341 4,111 467 2,107 945 =========== =========== =========== =========== =========== =========== =========== =========== ===========
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) For the year or period ended October 31, The notes to the financial statements are an integral part of these statements. 178 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
IDEX TRANSAMERICA IDEX TRANSAMERICA All numbers in thousands MONEY VALUE ------------------------ MARKET BALANCED INCREASE (DECREASE) IN NET ASSETS FROM: 2002 2002 2001 OPERATIONS: Net investment income (loss)............................... $ 661 $ 408 $ 535 Net realized gain (loss) on investment securities, futures and options contracts and foreign currency............... -- (5,021) 1,189 Net unrealized appreciation (depreciation) on investment securities, futures and options contracts and foreign currency translation..................................... -- (1,005) (3,391) ----------- ----------- ----------- 661 (5,618) (1,667) ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.................................................. (483) (192) (255) Class B.................................................. (123) (118) (186) Class C.................................................. (36) (37) (28) Class M.................................................. (19) (35) (62) ----------- ----------- ----------- (661) (382) (531) ----------- ----------- ----------- From net realized gains: Class A.................................................. -- (425) (450) Class B.................................................. -- (495) (446) Class C.................................................. -- (123) (29) Class M.................................................. -- (147) (141) ----------- ----------- ----------- -- (1,190) (1,066) ----------- ----------- ----------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares sold Class A.................................................. 299,057 3,760 7,969 Class B.................................................. 154,591 3,507 11,382 Class C.................................................. 42,694 3,421 3,790 Class M.................................................. 23,062 462 3,293 ----------- ----------- ----------- 519,404 11,150 26,434 ----------- ----------- ----------- Dividends and distributions reinvested Class A.................................................. 400 592 686 Class B.................................................. 103 599 626 Class C.................................................. 31 155 55 Class M.................................................. 16 177 202 ----------- ----------- ----------- 550 1,523 1,569 ----------- ----------- ----------- Cost of shares repurchased Class A.................................................. (167,508) (4,700) (3,419) Class B.................................................. (73,011) (5,294) (3,644) Class C.................................................. (22,585) (2,194) (499) Class M.................................................. (13,217) (1,733) (1,108) ----------- ----------- ----------- (276,321) (13,921) (8,670) ----------- ----------- ----------- 243,633 (1,248) 19,333 ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS....................... 243,633 (8,438) 16,069 ----------- ----------- ----------- NET ASSETS: Beginning of period........................................ -- 38,545 22,476 ----------- ----------- ----------- End of period.............................................. $ 243,633 $ 30,107 $ 38,545 =========== =========== =========== UNDISTRIBUTED NET INVESTMENT INCOME (LOSS):................. $ 85 $ 71 $ 47 =========== =========== =========== SHARES OF BENEFICIAL INTEREST ACTIVITY Shares issued during the period Class A.................................................. 299,058 339 639 Class B.................................................. 154,591 311 911 Class C.................................................. 42,693 302 302 Class M.................................................. 23,059 42 264 ----------- ----------- ----------- 519,401 994 2,116 ----------- ----------- ----------- Shares reinvested from distributions Class A.................................................. 400 52 56 Class B.................................................. 103 52 52 Class C.................................................. 31 14 5 Class M.................................................. 16 15 17 ----------- ----------- ----------- 550 133 130 ----------- ----------- ----------- Shares redeemed during the period Class A.................................................. (167,508) (444) (277) Class B.................................................. (73,011) (508) (297) Class C.................................................. (22,585) (213) (41) Class M.................................................. (13,217) (159) (89) ----------- ----------- ----------- (276,321) (1,324) (704) ----------- ----------- ----------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING DURING THE PERIOD..................................................... 243,630 (197) 1,542 =========== =========== ===========
(1) Includes proceeds in connection with the acquisition on March 1, 2002 for IDEX American Century Income & Growth and IDEX American Century International. See Note 1 on page 204. 179 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL HIGHLIGHTS For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX AGGRESSIVE ASSET ALLOCATION Class A 10/31/02 (3)(8) $ 10.00 $ (0.02) $ (2.03) $ (2.05) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (3)(8) 10.00 (0.06) (2.03) (2.09) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (3)(8) 10.00 (0.04) (2.05) (2.09) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (3)(8) 10.00 (0.05) (2.04) (2.09) - ---------------------------------------------------------------------------------------------------------- IDEX ALGER AGGRESSIVE GROWTH Class A 10/31/02 (8) 20.21 (0.20) (4.74) (4.94) 10/31/01 (8) 32.07 (0.13) (11.09) (11.22) 10/31/00 33.05 (0.13) 2.15 2.02 10/31/99 22.24 0.17 11.82 11.99 10/31/98 18.77 0.03 4.02 4.05 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 19.48 (0.32) (4.57) (4.89) 10/31/01 (8) 31.23 (0.29) (10.82) (11.11) 10/31/00 32.44 (0.36) 2.15 1.79 10/31/99 21.93 (0.13) 11.82 11.69 10/31/98 18.58 (0.09) 4.02 3.93 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 19.48 (0.32) (4.57) (4.89) 10/31/01 (8) 31.23 (0.31) (10.80) (11.11) 10/31/00 (2) 32.44 (0.36) 2.15 1.79 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 19.59 (0.30) (4.60) (4.90) 10/31/01 (8) 31.36 (0.27) (10.86) (11.13) 10/31/00 32.53 (0.32) 2.15 1.83 10/31/99 (2) 21.98 (0.09) 11.82 11.73 10/31/98 18.61 (0.07) 4.02 3.95 - ---------------------------------------------------------------------------------------------------------- IDEX AMERICAN CENTURY INCOME & GROWTH Class A 10/31/02 (8) 8.79 0.01 (1.25) (1.24) 10/31/01 (8) 10.83 (0.03) (2.01) (2.04) 10/31/00 10.00 -- 0.83 0.83 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 8.69 (0.05) (1.23) (1.28) 10/31/01 (8) 10.79 (0.10) (2.00) (2.10) 10/31/00 10.00 (0.04) 0.83 0.79 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 8.69 (0.05) (1.23) (1.28) 10/31/01 (8) 10.79 (0.08) (2.02) (2.10) 10/31/00 10.00 (0.04) 0.83 0.79 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 8.71 (0.04) (1.24) (1.28) 10/31/01 (8) 10.79 (0.09) (1.99) (2.08) 10/31/00 10.00 (0.04) 0.83 0.79 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX AGGRESSIVE ASSET ALLOCATION Class A $ -- $ -- $ -- - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ---------------------- IDEX ALGER AGGRESSIVE GROWTH Class A -- -- -- -- (0.64) (0.64) -- (3.00) (3.00) -- (1.18) (1.18) -- (0.58) (0.58) - ---------------------- Class B -- -- -- -- (0.64) (0.64) -- (3.00) (3.00) -- (1.18) (1.18) -- (0.58) (0.58) - ---------------------- Class C -- -- -- -- (0.64) (0.64) -- (3.00) (3.00) - ---------------------- Class M -- -- -- -- (0.64) (0.64) -- (3.00) (3.00) -- (1.18) (1.18) -- (0.58) (0.58) - ---------------------- IDEX AMERICAN CENTURY INCOME & GROWTH Class A -- -- -- -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- -- -- -- - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 180 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 7.95 (20.50)% $ 8,368 0.45% 1.65% (0.44)% 31.23% - --------------------------------------------------------------------------------------------------------------------------- 7.91 (20.90) 10,452 1.10 2.30 (1.09) 31.23 - --------------------------------------------------------------------------------------------------------------------------- 7.91 (20.90) 7,948 1.10 2.30 (1.09) 31.23 - --------------------------------------------------------------------------------------------------------------------------- 7.91 (20.90) 4,403 1.00 2.20 (0.99) 31.23 - --------------------------------------------------------------------------------------------------------------------------- 15.27 (24.44) 59,396 1.55 2.26 (1.05) 174.21 20.21 (35.56) 104,660 1.55 1.88 (0.56) 104.50 32.07 4.81 164,730 1.55 1.77 (0.94) 107.81 33.05 55.49 100,078 1.61 1.90 (1.15) 96.25 22.24 22.48 46,413 1.85 2.18 (1.11) 142.08 - --------------------------------------------------------------------------------------------------------------------------- 14.59 (25.11) 44,439 2.20 2.91 (1.70) 174.21 19.48 (36.17) 71,834 2.20 2.53 (1.21) 104.50 31.23 4.13 115,689 2.20 2.42 (1.59) 107.81 32.44 54.88 47,399 2.26 2.55 (1.80) 96.25 21.93 22.04 10,564 2.50 2.83 (1.76) 142.08 - --------------------------------------------------------------------------------------------------------------------------- 14.59 (25.11) 7,028 2.20 2.91 (1.70) 174.21 19.48 (36.17) 10,545 2.20 2.53 (1.21) 104.50 31.23 4.13 16,586 2.20 2.42 (1.59) 107.81 - --------------------------------------------------------------------------------------------------------------------------- 14.69 (25.02) 9,906 2.10 2.81 (1.60) 174.21 19.59 (36.08) 18,146 2.10 2.43 (1.11) 104.50 31.36 4.24 33,223 2.10 2.32 (1.49) 107.81 32.53 54.97 18,538 2.16 2.45 (1.70) 96.25 21.98 22.11 5,573 2.40 2.73 (1.66) 142.08 - --------------------------------------------------------------------------------------------------------------------------- 7.55 (14.15) 7,908 1.80 2.43 0.09 160.85 8.79 (18.80) 5,183 1.55 2.49 (0.28) 113.05 10.83 8.30 2,974 1.55 6.85 (0.42) 110.96 - --------------------------------------------------------------------------------------------------------------------------- 7.41 (14.76) 14,446 2.45 3.08 (0.56) 160.85 8.69 (19.41) 11,623 2.20 3.14 (0.93) 113.05 10.79 7.86 3,635 2.20 7.50 (1.07) 110.96 - --------------------------------------------------------------------------------------------------------------------------- 7.41 (14.76) 4,223 2.45 3.08 (0.56) 160.85 8.69 (19.41) 3,985 2.20 3.14 (0.93) 113.05 10.79 7.86 2,077 2.20 7.50 (1.07) 110.96 - --------------------------------------------------------------------------------------------------------------------------- 7.43 (14.68) 2,504 2.35 2.98 (0.46) 160.85 8.71 (19.32) 2,110 2.10 3.04 (0.83) 113.05 10.79 7.93 741 2.10 7.40 (0.97) 110.96 - ---------------------------------------------------------------------------------------------------------------------------
181 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX AMERICAN CENTURY INTERNATIONAL Class A 10/31/02 (8) $ 8.38 $ 0.01 $ (1.39) $ (1.38) 10/31/01 (8) 12.76 0.05 (3.05) (3.00) 10/31/00 12.85 0.05 0.35 0.40 10/31/99 10.77 0.03 2.05 2.08 10/31/98 10.57 0.07 0.20 0.27 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 8.15 (0.04) (1.35) (1.39) 10/31/01 (8) 12.53 (0.02) (2.98) (3.00) 10/31/00 12.70 (0.03) 0.35 0.32 10/31/99 10.71 (0.06) 2.05 1.99 10/31/98 10.52 -- 0.20 0.20 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 8.15 (0.04) (1.35) (1.39) 10/31/01 (8) 12.53 (0.02) (2.98) (3.00) 10/31/00 12.70 (0.03) 0.35 0.32 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 8.18 (0.03) (1.35) (1.38) 10/31/01 (8) 12.57 (0.01) (3.00) (3.01) 10/31/00 12.73 (0.02) 0.35 0.33 10/31/99 10.72 (0.04) 2.05 2.01 10/31/98 10.53 0.01 0.20 0.21 - ---------------------------------------------------------------------------------------------------------- IDEX CONSERVATIVE ASSET ALLOCATION Class A 10/31/02 (3)(8) 10.00 0.07 (0.85) (0.78) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (3)(8) 10.00 0.03 (0.85) (0.82) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (3)(8) 10.00 0.03 (0.85) (0.82) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (3)(8) 10.00 0.04 (0.86) (0.82) - ---------------------------------------------------------------------------------------------------------- IDEX FEDERATED TAX EXEMPT Class A 10/31/02 (8) 11.44 0.38 0.14 0.52 10/31/01 (8) 10.91 0.40 0.56 0.96 10/31/00 10.60 0.44 0.42 0.86 10/31/99 11.94 0.44 (1.14) (0.70) 10/31/98 11.75 0.48 0.34 0.82 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 11.44 0.30 0.11 0.41 10/31/01 (8) 10.90 0.34 0.56 0.90 10/31/00 10.59 0.37 0.42 0.79 10/31/99 11.94 0.35 (1.14) (0.79) 10/31/98 11.74 0.41 0.34 0.75 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 11.44 0.29 0.12 0.41 10/31/01 (8) 10.90 0.65 0.25 0.90 10/31/00 (2) 10.59 0.37 0.42 0.79 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 11.44 0.36 0.09 0.45 10/31/01 (8) 10.91 0.40 0.53 0.93 10/31/00 10.59 0.42 0.42 0.84 10/31/99 (2) 11.94 0.39 (1.14) (0.75) 10/31/98 11.75 0.45 0.34 0.79 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX AMERICAN CENTURY INTERNATIONAL Class A $ -- $ -- $ -- -- (1.38) (1.38) -- (0.49) (0.49) -- -- -- (0.07) -- (0.07) - ---------------------- Class B -- -- -- -- (1.38) (1.38) -- (0.49) (0.49) -- -- -- (0.01) -- (0.01) - ---------------------- Class C -- -- -- -- (1.38) (1.38) -- (0.49) (0.49) - ---------------------- Class M -- -- -- -- (1.38) (1.38) -- (0.49) (0.49) -- -- -- (0.02) -- (0.02) - ---------------------- IDEX CONSERVATIVE ASSET ALLOCATION Class A -- -- -- - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ---------------------- IDEX FEDERATED TAX EXEMPT Class A (0.45) -- (0.45) (0.43) -- (0.43) (0.44) (0.11) (0.55) (0.44) (0.20) (0.64) (0.48) (0.15) (0.63) - ---------------------- Class B (0.34) -- (0.34) (0.36) -- (0.36) (0.37) (0.11) (0.48) (0.36) (0.20) (0.56) (0.40) (0.15) (0.55) - ---------------------- Class C (0.34) -- (0.34) (0.36) -- (0.36) (0.37) (0.11) (0.48) - ---------------------- Class M (0.38) -- (0.38) (0.40) -- (0.40) (0.41) (0.11) (0.52) (0.40) (0.20) (0.60) (0.45) (0.15) (0.60) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 182 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 7.00 (16.49)% $ 14,921 1.87% 3.68% 0.22% 240.73% 8.38 (26.43) 5,209 1.55 2.77 0.47 128.78 12.76 2.74 6,977 1.62 3.56 0.09 108.37 12.85 19.12 4,902 1.90 3.53 (0.16) 71.70 10.77 2.58 4,981 2.03 4.22 (0.21) 50.01 - ---------------------------------------------------------------------------------------------------------------------------- 6.76 (17.09) 5,328 2.52 4.33 (0.43) 240.73 8.15 (26.96) 5,003 2.20 3.42 (0.18) 128.78 12.53 2.09 4,407 2.27 4.21 (0.56) 108.37 12.70 18.45 1,527 2.55 4.18 (0.81) 71.70 10.71 1.89 1,198 2.68 4.87 (0.86) 50.01 - ---------------------------------------------------------------------------------------------------------------------------- 6.76 (17.09) 1,381 2.52 4.33 (0.43) 240.73 8.15 (26.96) 938 2.20 3.42 (0.18) 128.78 12.53 2.09 629 2.27 4.21 (0.56) 108.37 - ---------------------------------------------------------------------------------------------------------------------------- 6.80 (17.08) 826 2.42 4.23 (0.33) 240.73 8.18 (26.88) 872 2.10 3.32 (0.08) 128.78 12.57 2.19 840 2.17 4.11 (0.46) 108.37 12.73 18.55 480 2.45 4.08 (0.71) 71.70 10.72 1.99 397 2.58 4.77 (0.76) 50.01 - ---------------------------------------------------------------------------------------------------------------------------- 9.22 (7.80) 9,482 0.45 1.21 1.27 8.33 - ---------------------------------------------------------------------------------------------------------------------------- 9.18 (8.20) 23,229 1.10 1.86 0.62 8.33 - ---------------------------------------------------------------------------------------------------------------------------- 9.18 (8.20) 11,940 1.10 1.86 0.62 8.33 - ---------------------------------------------------------------------------------------------------------------------------- 9.18 (8.20) 5,072 1.00 1.76 0.72 8.33 - ---------------------------------------------------------------------------------------------------------------------------- 11.51 4.26 20,469 1.35 1.46 3.63 55.01 11.44 8.99 23,190 1.35 1.48 3.80 34.89 10.91 8.38 16,999 1.35 1.68 4.14 67.32 10.60 (6.23) 20,996 1.35 1.50 3.83 35.97 11.94 7.19 22,313 1.23 1.27 4.08 42.42 - ---------------------------------------------------------------------------------------------------------------------------- 11.51 3.63 12,019 2.00 2.11 2.98 55.01 11.44 8.32 6,276 2.00 2.13 3.15 34.89 10.90 7.72 1,728 2.00 2.33 3.49 67.32 10.59 (6.89) 1,253 2.00 2.15 3.18 35.97 11.94 6.50 654 1.88 1.92 3.43 42.42 - ---------------------------------------------------------------------------------------------------------------------------- 11.51 3.63 5,247 2.00 2.11 2.98 55.01 11.44 8.32 1,636 2.00 2.13 3.15 34.89 10.90 7.72 195 2.00 2.33 3.49 67.32 - ---------------------------------------------------------------------------------------------------------------------------- 11.51 4.02 2,878 1.60 1.71 3.38 55.01 11.44 8.73 2,413 1.60 1.73 3.55 34.89 10.91 8.13 2,014 1.60 1.93 3.89 67.32 10.59 (6.56) 2,193 1.60 1.75 3.58 35.97 11.94 6.92 1,607 1.48 1.52 3.83 42.42 - ----------------------------------------------------------------------------------------------------------------------------
183 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX GABELLI GLOBAL GROWTH Class A 10/31/02 (8) $ 6.78 $ (0.03) $ (1.09) $ (1.12) 10/31/01 (8) 10.06 0.03 (3.27) (3.24) 10/31/00 10.00 0.03 0.03 0.06 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 6.72 (0.09) (1.06) (1.15) 10/31/01 (8) 10.05 (0.04) (3.27) (3.31) 10/31/00 10.00 0.02 0.03 0.05 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 6.72 (0.09) (1.06) (1.15) 10/31/01 (8) 10.05 (0.04) (3.27) (3.31) 10/31/00 10.00 0.02 0.03 0.05 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 6.73 (0.08) (1.07) (1.15) 10/31/01 (8) 10.05 (0.03) (3.27) (3.30) 10/31/00 10.00 0.02 0.03 0.05 - ---------------------------------------------------------------------------------------------------------- IDEX GOLDMAN SACHS GROWTH Class A 10/31/02 (8) 9.10 (0.06) (1.48) (1.54) 10/31/01 (8) 12.54 (0.05) (3.25) (3.30) 10/31/00 11.40 0.02 1.15 1.17 10/31/99 10.00 0.03 1.37 1.40 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 8.92 (0.11) (1.45) (1.56) 10/31/01 (8) 12.41 (0.11) (3.24) (3.35) 10/31/00 11.35 (0.06) 1.15 1.09 10/31/99 10.00 (0.02) 1.37 1.35 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 8.92 (0.12) (1.44) (1.56) 10/31/01 (8) 12.41 (0.12) (3.23) (3.35) 10/31/00 11.35 (0.06) 1.15 1.09 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 8.95 (0.11) (1.45) (1.56) 10/31/01 (8) 12.43 (0.11) (3.23) (3.34) 10/31/00 11.36 (0.05) 1.15 1.10 10/31/99 10.00 (0.01) 1.37 1.36 - ---------------------------------------------------------------------------------------------------------- IDEX GREAT COMPANIES- AMERICA(SM) Class A 10/31/02 (8) 8.96 (0.01) (1.30) (1.31) 10/31/01 (8) 10.58 (0.02) (1.60) (1.62) 10/31/00 10.00 -- 0.58 0.58 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 8.87 (0.08) (1.27) (1.35) 10/31/01 (8) 10.56 (0.08) (1.61) (1.69) 10/31/00 10.00 (0.02) 0.58 0.56 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 8.87 (0.08) (1.27) (1.35) 10/31/01 (8) 10.56 (0.08) (1.61) (1.69) 10/31/00 10.00 (0.02) 0.58 0.56 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 8.89 (0.07) (1.28) (1.35) 10/31/01 (8) 10.56 (0.08) (1.59) (1.67) 10/31/00 10.00 (0.02) 0.58 0.56 - ---------------------------------------------------------------------------------------------------------- IDEX GREAT COMPANIES- GLOBAL(2) Class A 10/31/02 (8) 6.65 (0.01) (0.78) (0.79) 10/31/01 (8) 9.81 (0.03) (3.10) (3.13) 10/31/00 10.00 -- (0.19) (0.19) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 6.59 (0.07) (0.76) (0.83) 10/31/01 (8) 9.80 (0.08) (3.10) (3.18) 10/31/00 10.00 (0.01) (0.19) (0.20) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 6.59 (0.06) (0.77) (0.83) 10/31/01 (8) 9.80 (0.09) (3.09) (3.18) 10/31/00 10.00 (0.01) (0.19) (0.20) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 6.60 (0.06) (0.76) (0.82) 10/31/01 (8) 9.80 (0.08) (3.09) (3.17) 10/31/00 10.00 (0.01) (0.19) (0.20) DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX GABELLI GLOBAL GROWTH Class A $ -- $ -- $ -- (0.04) -- (0.04) -- -- -- - ---------------------- Class B -- -- -- (0.02) -- (0.02) -- -- -- - ---------------------- Class C -- -- -- (0.02) -- (0.02) -- -- -- - ---------------------- Class M -- -- -- (0.02) -- (0.02) -- -- -- - ---------------------- IDEX GOLDMAN SACHS GROWTH Class A -- -- -- -- (0.14) (0.14) -- (0.03) (0.03) -- -- -- - ---------------------- Class B -- -- -- -- (0.14) (0.14) -- (0.03) (0.03) -- -- -- - ---------------------- Class C -- -- -- -- (0.14) (0.14) -- (0.03) (0.03) - ---------------------- Class M -- -- -- -- (0.14) (0.14) -- (0.03) (0.03) -- -- -- - ---------------------- IDEX GREAT COMPANIES- AMERICA(SM) Class A -- -- -- -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- -- -- -- - ---------------------- IDEX GREAT COMPANIES- GLOBAL(2) Class A -- -- -- -- (0.03) (0.03) -- -- -- - ---------------------- Class B -- -- -- -- (0.03) (0.03) -- -- -- - ---------------------- Class C -- -- -- -- (0.03) (0.03) -- -- -- - ---------------------- Class M -- -- -- -- (0.03) (0.03) -- -- --
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 184 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 5.66 (16.48)% $ 22,236 1.75% 2.27% (0.58)% 123.60% 6.78 (32.37) 16,107 1.75 2.18 0.28 44.96 10.06 0.61 4,488 1.75 7.22 3.22 -- - --------------------------------------------------------------------------------------------------------------------------- 5.57 (17.16) 16,363 2.40 2.92 (1.23) 123.60 6.72 (32.95) 20,536 2.40 2.83 (0.37) 44.96 10.05 0.52 6,558 2.40 7.87 2.57 -- - --------------------------------------------------------------------------------------------------------------------------- 5.57 (17.16) 5,496 2.40 2.92 (1.23) 123.60 6.72 (32.95) 8,818 2.40 2.83 (0.37) 44.96 10.05 0.52 7,468 2.40 7.87 2.57 -- - --------------------------------------------------------------------------------------------------------------------------- 5.58 (17.12) 2,594 2.30 2.82 (1.13) 123.60 6.73 (32.86) 3,935 2.30 2.73 (0.27) 44.96 10.05 0.54 2,240 2.30 7.77 2.67 -- - --------------------------------------------------------------------------------------------------------------------------- 7.56 (16.88) 5,752 1.73 2.05 (0.56) 33.59 9.10 (26.63) 7,361 1.55 2.03 (0.43) 14.72 12.54 10.29 6,587 1.55 2.53 (0.47) 25.10 11.40 13.97 1,978 1.55 7.65 (0.55) 21.91 - --------------------------------------------------------------------------------------------------------------------------- 7.36 (17.52) 14,130 2.38 2.70 (1.21) 33.59 8.92 (27.25) 15,081 2.20 2.68 (1.08) 14.72 12.41 9.54 7,908 2.20 3.18 (1.12) 25.10 11.35 13.54 2,261 2.20 8.30 (1.20) 21.91 - --------------------------------------------------------------------------------------------------------------------------- 7.36 (17.52) 2,301 2.38 2.70 (1.21) 33.59 8.92 (27.25) 4,719 2.20 2.68 (1.08) 14.72 12.41 9.54 6,484 2.20 3.18 (1.12) 25.10 - --------------------------------------------------------------------------------------------------------------------------- 7.39 (17.43) 3,320 2.28 2.60 (1.11) 33.59 8.95 (27.15) 3,201 2.10 2.58 (0.98) 14.72 12.43 9.65 2,976 2.10 3.08 (1.02) 25.10 11.36 13.61 748 2.10 8.20 (1.10) 21.91 - --------------------------------------------------------------------------------------------------------------------------- 7.65 (14.59) 55,508 1.55 1.66 (0.16) 27.70 8.96 (15.35) 38,345 1.55 1.78 (0.18) 64.93 10.58 5.81 13,377 1.55 3.38 (0.08) 2.11 - --------------------------------------------------------------------------------------------------------------------------- 7.52 (15.26) 53,256 2.20 2.31 (0.81) 27.70 8.87 (15.98) 40,769 2.20 2.43 (0.83) 64.93 10.56 5.62 7,839 2.20 4.03 (0.73) 2.11 - --------------------------------------------------------------------------------------------------------------------------- 7.52 (15.26) 16,452 2.20 2.31 (0.81) 27.70 8.87 (15.98) 11,953 2.20 2.43 (0.83) 64.93 10.56 5.62 2,875 2.20 4.03 (0.73) 2.11 - --------------------------------------------------------------------------------------------------------------------------- 7.54 (15.15) 8,710 2.10 2.21 (0.71) 27.70 8.89 (15.88) 7,296 2.10 2.33 (0.73) 64.93 10.56 5.65 1,744 2.10 3.93 (0.63) 2.11 - --------------------------------------------------------------------------------------------------------------------------- 5.86 (11.90) 11,964 1.55 2.39 (0.26) 65.72 6.65 (31.99) 5,294 1.55 3.26 (0.37) 80.16 9.81 (1.92) 2,173 1.55 25.34 (0.52) 15.15 - --------------------------------------------------------------------------------------------------------------------------- 5.76 (12.58) 3,251 2.20 3.04 (0.91) 65.72 6.59 (32.57) 3,400 2.20 3.91 (1.02) 80.16 9.80 (2.01) 582 2.20 25.99 (1.17) 15.15 - --------------------------------------------------------------------------------------------------------------------------- 5.76 (12.58) 988 2.20 3.04 (0.91) 65.72 6.59 (32.57) 1,112 2.20 3.91 (1.02) 80.16 9.80 (2.01) 353 2.20 25.99 (1.17) 15.15 - --------------------------------------------------------------------------------------------------------------------------- 5.78 (12.40) 768 2.10 2.94 (0.81) 65.72 6.60 (32.48) 813 2.10 3.81 (0.92) 80.16 9.80 (1.99) 833 2.10 25.89 (1.07) 15.15 - ---------------------------------------------------------------------------------------------------------------------------
185 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX GREAT COMPANIES- TECHNOLOGY(SM) Class A 10/31/02 (8) $ 3.63 $ (0.05) $ (1.02) $ (1.07) 10/31/01 (8) 7.93 (0.06) (4.24) (4.30) 10/31/00 10.00 -- (2.07) (2.07) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 3.58 (0.08) (1.00) (1.08) 10/31/01 (8) 7.91 (0.10) (4.23) (4.33) 10/31/00 10.00 (0.02) (2.07) (2.09) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 3.58 (0.08) (1.00) (1.08) 10/31/01 (8) 7.91 (0.09) (4.24) (4.33) 10/31/00 10.00 (0.02) (2.07) (2.09) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 3.59 (0.07) (1.01) (1.08) 10/31/01 (8) 7.92 (0.09) (4.24) (4.33) 10/31/00 10.00 (0.01) (2.07) (2.08) - ---------------------------------------------------------------------------------------------------------- IDEX ISABELLE SMALL CAP VALUE Class A 10/31/02 (8) 10.12 (0.07) (0.96) (1.03) 10/31/01 (8) 10.00 (0.02) 0.14 0.12 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 10.08 (0.19) (0.91) (1.10) 10/31/01 (8) 10.00 (0.05) 0.13 0.08 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 10.08 (0.19) (0.91) (1.10) 10/31/01 (8) 10.00 (0.05) 0.13 0.08 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 10.09 (0.19) (0.90) (1.09) 10/31/01 (8) 10.00 (0.06) 0.15 0.09 - ---------------------------------------------------------------------------------------------------------- IDEX JANUS BALANCED Class A 10/31/02 (8) 17.31 0.29 (1.09) (0.80) 10/31/01 (8) 19.75 0.37 (2.18) (1.81) 10/31/00 18.96 0.25 1.03 1.28 10/31/99 14.75 0.19 4.27 4.46 10/31/98 14.34 0.15 1.76 1.91 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 17.30 0.18 (1.09) (0.91) 10/31/01 (8) 19.73 0.25 (2.17) (1.92) 10/31/00 18.95 0.21 1.03 1.24 10/31/99 14.74 0.08 4.27 4.35 10/31/98 14.33 0.06 1.76 1.82 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 17.30 0.18 (1.09) (0.91) 10/31/01 (8) 19.73 0.26 (2.18) (1.92) 10/31/00 (2) 18.95 0.21 1.03 1.24 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 17.30 0.19 (1.09) (0.90) 10/31/01 (8) 19.73 0.28 (2.18) (1.90) 10/31/00 18.95 0.23 1.03 1.26 10/31/99 (2) 14.74 0.10 4.27 4.37 10/31/98 14.33 0.07 1.76 1.83 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX GREAT COMPANIES- TECHNOLOGY(SM) Class A $ -- $ -- $ -- -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- -- -- -- - ---------------------- IDEX ISABELLE SMALL CAP VALUE Class A -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- - ---------------------- IDEX JANUS BALANCED Class A (0.28) -- (0.28) (0.35) (0.28) (0.63) (0.24) (0.25) (0.49) (0.17) (0.08) (0.25) (0.15) (1.35) (1.50) - ---------------------- Class B (0.17) -- (0.17) (0.23) (0.28) (0.51) (0.21) (0.25) (0.46) (0.06) (0.08) (0.14) (0.06) (1.35) (1.41) - ---------------------- Class C (0.17) -- (0.17) (0.23) (0.28) (0.51) (0.21) (0.25) (0.46) - ---------------------- Class M (0.18) -- (0.18) (0.25) (0.28) (0.53) (0.23) (0.25) (0.48) (0.08) (0.08) (0.16) (0.07) (1.35) (1.42) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 186 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 2.56 (29.45)% $ 6,445 1.55% 2.61% (1.40)% 63.64% 3.63 (54.26) 7,106 1.55 2.68 (1.04) 57.85 7.93 (20.66) 6,322 1.55 5.55 (0.64) 11.25 - --------------------------------------------------------------------------------------------------------------------------- 2.50 (30.12) 4,348 2.20 3.26 (2.05) 63.64 3.58 (54.80) 5,938 2.20 3.33 (1.69) 57.85 7.91 (20.86) 3,295 2.20 6.20 (1.29) 11.25 - --------------------------------------------------------------------------------------------------------------------------- 2.50 (30.12) 1,245 2.20 3.26 (2.05) 63.64 3.58 (54.80) 1,683 2.20 3.33 (1.69) 57.85 7.91 (20.86) 1,443 2.20 6.20 (1.29) 11.25 - --------------------------------------------------------------------------------------------------------------------------- 2.51 (29.99) 1,190 2.10 3.16 (1.95) 63.64 3.59 (54.71) 1,510 2.10 3.23 (1.59) 57.85 7.92 (20.83) 710 2.10 6.10 (1.19) 11.25 - --------------------------------------------------------------------------------------------------------------------------- 9.09 (10.18) 45,500 1.85 1.98 (0.88) 21.74 10.12 1.20 6,536 1.85 3.56 (0.32) 7.58 - --------------------------------------------------------------------------------------------------------------------------- 8.98 (10.91) 24,391 2.50 2.63 (1.53) 21.74 10.08 0.80 7,604 2.50 4.21 (0.97) 7.58 - --------------------------------------------------------------------------------------------------------------------------- 8.98 (10.91) 12,034 2.50 2.63 (1.53) 21.74 10.08 0.80 3,545 2.50 4.21 (0.97) 7.58 - --------------------------------------------------------------------------------------------------------------------------- 9.00 (10.80) 4,186 2.40 2.53 (1.43) 21.74 10.09 0.90 1,460 2.40 4.11 (0.87) 7.58 - --------------------------------------------------------------------------------------------------------------------------- 16.23 (4.72) 100,923 1.68 1.70 1.70 87.22 17.31 (9.35) 126,369 1.64 1.66 1.96 113.77 19.75 7.23 133,445 1.67 1.69 1.73 70.87 18.96 30.43 67,749 1.81 1.82 1.28 59.57 14.75 14.69 22,995 1.85 2.04 1.12 61.50 - --------------------------------------------------------------------------------------------------------------------------- 16.22 (5.31) 214,019 2.33 2.35 1.05 87.22 17.30 (9.93) 243,387 2.29 2.31 1.31 113.77 19.73 6.58 229,160 2.32 2.34 1.08 70.87 18.95 29.64 92,833 2.46 2.47 0.63 59.57 14.74 13.97 11,916 2.50 2.69 0.47 61.50 - --------------------------------------------------------------------------------------------------------------------------- 16.22 (5.31) 39,636 2.33 2.35 1.05 87.22 17.30 (9.93) 47,399 2.29 2.31 1.31 113.77 19.73 6.58 42,447 2.32 2.34 1.08 70.87 - --------------------------------------------------------------------------------------------------------------------------- 16.22 (5.23) 50,414 2.23 2.25 1.15 87.22 17.30 (9.84) 64,641 2.19 2.21 1.41 113.77 19.73 6.68 66,249 2.22 2.24 1.18 70.87 18.95 29.76 34,122 2.36 2.37 0.73 59.57 14.74 14.08 4,897 2.40 2.59 0.57 61.50 - ---------------------------------------------------------------------------------------------------------------------------
187 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX JANUS CAPITAL APPRECIATION Class A 10/31/02 (8) $ 13.81 $ (0.17) $ (3.07) $ (3.24) 10/31/01 (8) 32.08 (0.29) (17.98) (18.27) 10/31/00 31.09 (0.13) 3.19 3.06 10/31/99 16.97 0.05 15.88 15.93 10/31/98 15.90 0.01 1.51 1.52 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 13.27 (0.25) (2.95) (3.20) 10/31/01 (8) 31.25 (0.42) (17.56) (17.98) 10/31/00 30.51 (0.38) 3.19 2.81 10/31/99 16.72 (0.28) 15.88 15.60 10/31/98 15.74 (0.08) 1.51 1.43 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 13.27 (0.25) (2.95) (3.20) 10/31/01 (8) 31.25 (0.42) (17.56) (17.98) 10/31/00 (2) 30.51 (0.38) 3.19 2.81 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 13.35 (0.24) (2.96) (3.20) 10/31/01 (8) 31.38 (0.40) (17.63) (18.03) 10/31/00 30.60 (0.34) 3.19 2.85 10/31/99 (2) 16.76 (0.23) 15.88 15.65 10/31/98 15.77 (0.07) 1.51 1.44 - ---------------------------------------------------------------------------------------------------------- IDEX JANUS FLEXIBLE INCOME Class A 10/31/02 (8) 9.99 0.40 0.02 0.42 10/31/01 (8) 9.26 0.47 0.71 1.18 10/31/00 9.46 0.57 (0.19) 0.38 10/31/99 9.84 0.54 (0.38) 0.16 10/31/98 9.75 0.61 0.10 0.71 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 9.99 0.34 0.02 0.36 10/31/01 (8) 9.26 0.37 0.74 1.11 10/31/00 9.46 0.51 (0.19) 0.32 10/31/99 9.83 0.49 (0.38) 0.11 10/31/98 9.75 0.54 0.10 0.64 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 9.99 0.35 0.01 0.36 10/31/01 (8) 9.26 0.41 0.70 1.11 10/31/00 (2) 9.46 0.51 (0.19) 0.32 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 9.99 0.36 0.01 0.37 10/31/01 (8) 9.26 0.42 0.70 1.12 10/31/00 9.46 0.52 (0.19) 0.33 10/31/99 (2) 9.84 0.49 (0.38) 0.11 10/31/98 9.75 0.56 0.10 0.66 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX JANUS CAPITAL APPRECIATION Class A $ -- $ -- $ -- -- -- -- -- (2.07) (2.07) -- (1.81) (1.81) -- (0.45) (0.45) - ---------------------- Class B -- -- -- -- -- -- -- (2.07) (2.07) -- (1.81) (1.81) -- (0.45) (0.45) - ---------------------- Class C -- -- -- -- -- -- -- (2.07) (2.07) - ---------------------- Class M -- -- -- -- -- -- -- (2.07) (2.07) -- (1.81) (1.81) -- (0.45) (0.45) - ---------------------- IDEX JANUS FLEXIBLE INCOME Class A (0.41) (0.06) (0.47) (0.45) -- (0.45) (0.58) -- (0.58) (0.54) -- (0.54) (0.62) -- (0.62) - ---------------------- Class B (0.35) (0.06) (0.41) (0.38) -- (0.38) (0.52) -- (0.52) (0.48) -- (0.48) (0.56) -- (0.56) - ---------------------- Class C (0.35) (0.06) (0.41) (0.38) -- (0.38) (0.52) -- (0.52) - ---------------------- Class M (0.36) (0.06) (0.42) (0.39) -- (0.39) (0.53) -- (0.53) (0.49) -- (0.49) (0.57) -- (0.57) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 188 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 10.57 (23.38)% $ 37,451 1.85% 2.67% (1.34)% 64.74% 13.81 (56.95) 64,113 1.85 2.01 (1.45) 87.57 32.08 9.14 176,996 1.85 1.89 (1.53) 103.64 31.09 102.19 74,614 1.84 2.02 (1.55) 93.54 16.97 9.87 23,798 1.85 2.24 (1.37) 136.59 - --------------------------------------------------------------------------------------------------------------------------- 10.07 (24.04) 43,001 2.50 3.32 (1.99) 64.74 13.27 (57.53) 75,467 2.50 2.66 (2.10) 87.57 31.25 8.45 187,067 2.50 2.54 (2.18) 103.64 30.51 101.72 36,467 2.49 2.67 (2.20) 93.54 16.72 9.35 3,734 2.50 2.89 (2.02) 136.59 - --------------------------------------------------------------------------------------------------------------------------- 10.07 (24.04) 8,088 2.50 3.32 (1.99) 64.74 13.27 (57.53) 15,363 2.50 2.66 (2.10) 87.57 31.25 8.45 43,065 2.50 2.54 (2.18) 103.64 - --------------------------------------------------------------------------------------------------------------------------- 10.15 (23.98) 9,706 2.40 3.22 (1.89) 64.74 13.35 (57.44) 18,940 2.40 2.56 (2.00) 87.57 31.38 8.55 51,450 2.40 2.44 (2.08) 103.64 30.60 101.79 10,062 2.39 2.57 (2.10) 93.54 16.76 9.43 1,382 2.40 2.79 (1.92) 136.59 - --------------------------------------------------------------------------------------------------------------------------- 9.94 4.45 61,815 1.62 1.65 4.23 245.19 9.99 13.14 29,600 1.68 1.70 4.84 314.67 9.26 4.10 16,530 1.84 1.87 6.17 165.55 9.46 1.70 14,963 1.85 2.00 5.72 100.22 9.84 7.43 14,970 1.83 1.83 6.22 90.63 - --------------------------------------------------------------------------------------------------------------------------- 9.94 3.83 67,220 2.27 2.30 3.58 245.19 9.99 12.28 40,435 2.33 2.35 4.19 314.67 9.26 3.46 14,008 2.49 2.51 5.52 165.55 9.46 1.01 9,006 2.50 2.65 5.07 100.22 9.83 6.74 2,387 2.48 2.48 5.57 90.63 - --------------------------------------------------------------------------------------------------------------------------- 9.94 3.83 17,391 2.27 2.30 3.58 245.19 9.99 12.28 11,246 2.33 2.35 4.19 314.67 9.26 3.46 8,169 2.49 2.51 5.52 165.55 - --------------------------------------------------------------------------------------------------------------------------- 9.94 3.93 15,952 2.17 2.20 3.68 245.19 9.99 12.40 14,745 2.23 2.25 4.29 314.67 9.26 3.56 6,220 2.39 2.41 5.62 165.55 9.46 1.11 3,778 2.40 2.55 5.17 100.22 9.84 6.84 2,207 2.38 2.38 5.67 90.63 - ---------------------------------------------------------------------------------------------------------------------------
189 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX JANUS GLOBAL Class A 10/31/02 (8) $ 23.67 $ (0.08) $ (4.53) $ (4.61) 10/31/01 (8) 40.20 (0.07) (13.99) (14.06) 10/31/00 33.80 -- 7.53 7.53 10/31/99 (7) 24.09 0.22 9.49 9.71 10/31/98 23.74 0.08 2.34 2.42 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 22.71 (0.22) (4.35) (4.57) 10/31/01 (8) 38.97 (0.27) (13.52) (13.79) 10/31/00 32.98 (0.41) 7.53 7.12 10/31/99 (7) 23.62 (0.13) 9.49 9.36 10/31/98 23.38 (0.03) 2.34 2.31 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 22.72 (0.22) (4.36) (4.58) 10/31/01 (8) 38.98 (0.27) (13.52) (13.79) 10/31/00 (2) 32.98 (0.40) 7.53 7.13 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 22.72 (0.20) (4.34) (4.54) 10/31/01 (8) 38.94 (0.24) (13.51) (13.75) 10/31/00 32.91 (0.37) 7.53 7.16 10/31/99 (2)(7) 23.56 (0.14) 9.49 9.35 10/31/98 23.30 (0.01) 2.34 2.33 - ---------------------------------------------------------------------------------------------------------- IDEX JANUS GROWTH Class A 10/31/02 (8) 19.64 (0.22) (3.55) (3.77) 10/31/01 (8) 43.81 (0.24) (20.80) (21.04) 10/31/00 46.72 0.03 5.35 5.38 10/31/99 29.35 0.06 17.70 17.76 10/31/98 25.04 (0.02) 7.64 7.62 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 18.63 (0.34) (3.36) (3.70) 10/31/01 (8) 42.08 (0.41) (19.91) (20.32) 10/31/00 45.38 (0.36) 5.35 4.99 10/31/99 28.63 (0.56) 17.70 17.14 10/31/98 24.55 (0.25) 7.64 7.39 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 18.63 (0.34) (3.36) (3.70) 10/31/01 (8) 42.08 (0.42) (19.90) (20.32) 10/31/00 (2) 45.38 (0.36) 5.35 4.99 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 18.78 (0.32) (3.38) (3.70) 10/31/01 (8) 42.35 (0.39) (20.05) (20.44) 10/31/00 45.58 (0.29) 5.35 5.06 10/31/99 (2) 28.74 (0.47) 17.70 17.23 10/31/98 24.62 (0.21) 7.64 7.43 - ---------------------------------------------------------------------------------------------------------- Class T 10/31/02 (8) 20.20 (0.16) (3.64) (3.80) 10/31/01 (8) 44.76 (0.14) (21.29) (21.43) 10/31/00 47.45 0.25 5.35 5.60 10/31/99 29.74 0.40 17.70 18.10 10/31/98 (3) 25.31 0.13 7.64 7.77 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX JANUS GLOBAL Class A $ -- $ -- $ -- -- (2.47) (2.47) -- (1.13) (1.13) -- -- -- -- (2.07) (2.07) - ---------------------- Class B -- -- -- -- (2.47) (2.47) -- (1.13) (1.13) -- -- -- -- (2.07) (2.07) - ---------------------- Class C -- -- -- -- (2.47) (2.47) -- (1.13) (1.13) - ---------------------- Class M -- -- -- -- (2.47) (2.47) -- (1.13) (1.13) -- -- -- -- (2.07) (2.07) - ---------------------- IDEX JANUS GROWTH Class A -- -- -- -- (3.13) (3.13) -- (8.29) (8.29) -- (0.39) (0.39) -- (3.31) (3.31) - ---------------------- Class B -- -- -- -- (3.13) (3.13) -- (8.29) (8.29) -- (0.39) (0.39) -- (3.31) (3.31) - ---------------------- Class C -- -- -- -- (3.13) (3.13) -- (8.29) (8.29) - ---------------------- Class M -- -- -- -- (3.13) (3.13) -- (8.29) (8.29) -- (0.39) (0.39) -- (3.31) (3.31) - ---------------------- Class T -- -- -- -- (3.13) (3.13) -- (8.29) (8.29) -- (0.39) (0.39) (0.03) (3.31) (3.34) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 190 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 19.06 (19.46)% $ 225,722 1.88% 1.88% (0.34)% 72.26% 23.67 (37.08) 374,626 1.63 1.63 (0.24) 78.87 40.20 22.26 749,671 1.64 1.64 (0.56) 52.51 33.80 40.31 487,787 1.73 1.73 (0.22) 145.40 24.09 11.30 296,450 1.82 1.82 (0.45) 87.68 - --------------------------------------------------------------------------------------------------------------------------- 18.14 (20.09) 193,259 2.53 2.53 (0.99) 72.26 22.71 (37.58) 320,693 2.28 2.28 (0.89) 78.87 38.97 21.62 614,789 2.29 2.29 (1.21) 52.51 32.98 39.62 283,847 2.38 2.38 (0.87) 145.40 23.62 10.93 110,630 2.47 2.47 (1.10) 87.68 - --------------------------------------------------------------------------------------------------------------------------- 18.14 (20.09) 27,332 2.53 2.53 (0.99) 72.26 22.72 (37.58) 54,221 2.28 2.28 (0.89) 78.87 38.98 21.62 116,071 2.29 2.29 (1.21) 52.51 - --------------------------------------------------------------------------------------------------------------------------- 18.18 (20.00) 77,884 2.43 2.43 (0.89) 72.26 22.72 (37.48) 149,070 2.18 2.18 (0.79) 78.87 38.94 21.72 306,667 2.19 2.19 (1.11) 52.51 32.91 39.73 155,147 2.28 2.28 (0.77) 145.40 23.56 11.08 63,552 2.37 2.37 (1.00) 87.68 - --------------------------------------------------------------------------------------------------------------------------- 15.87 (19.21) 505,704 1.66 1.69 (1.10) 62.26 19.64 (51.31) 770,590 1.49 1.49 (0.83) 64.22 43.81 10.82 1,727,573 1.39 1.42 (0.61) 40.71 46.72 61.00 1,467,595 1.40 1.43 (0.60) 70.97 29.35 35.21 817,749 1.51 1.51 (0.55) 27.19 - --------------------------------------------------------------------------------------------------------------------------- 14.93 (19.86) 224,348 2.31 2.35 (1.75) 62.26 18.63 (51.74) 354,949 2.14 2.14 (1.48) 64.22 42.08 10.11 775,252 2.04 2.07 (1.26) 40.71 45.38 60.36 327,926 2.05 2.08 (1.25) 70.97 28.63 34.96 40,809 2.16 2.16 (1.20) 27.19 - --------------------------------------------------------------------------------------------------------------------------- 14.93 (19.86) 32,168 2.31 2.35 (1.75) 62.26 18.63 (51.74) 54,760 2.14 2.14 (1.48) 64.22 42.08 10.11 121,633 2.04 2.07 (1.26) 40.71 - --------------------------------------------------------------------------------------------------------------------------- 15.08 (19.72) 61,207 2.21 2.25 (1.65) 62.26 18.78 (51.68) 113,794 2.04 2.04 (1.38) 64.22 42.35 10.22 287,530 1.94 1.97 (1.16) 40.71 45.58 60.45 141,586 1.95 1.98 (1.15) 70.97 28.74 35.00 58,265 2.06 2.06 (1.10) 27.19 - --------------------------------------------------------------------------------------------------------------------------- 16.40 (18.82) 368,301 1.31 1.34 (0.75) 62.26 20.20 (51.07) 546,317 1.14 1.14 (0.48) 64.22 44.76 11.20 1,232,295 1.04 1.07 (0.26) 40.71 47.45 61.34 1,166,965 1.05 1.08 (0.25) 70.97 29.74 35.53 755,770 1.16 1.16 (0.20) 27.19 - ---------------------------------------------------------------------------------------------------------------------------
191 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX JANUS GROWTH & INCOME Class A 10/31/02 (8) $ 8.44 $ (0.03) $ (1.15) $ (1.18) 10/31/01 (8) 10.00 0.03 (1.59) (1.56) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 8.38 (0.09) (1.13) (1.22) 10/31/01 (8) 10.00 (0.03) (1.59) (1.62) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 8.38 (0.10) (1.12) (1.22) 10/31/01 (8) 10.00 (0.03) (1.59) (1.62) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 8.39 (0.09) (1.13) (1.22) 10/31/01 (8) 10.00 (0.03) (1.58) (1.61) - ---------------------------------------------------------------------------------------------------------- IDEX JENNISON EQUITY OPPORTUNITY Class A 10/31/02 (8) 8.04 (0.05) (1.11) (1.16) 10/31/01 (8) 10.26 (0.01) (1.17) (1.18) 10/31/00 12.14 (0.13) (1.54) (1.67) 10/31/99 10.14 0.06 2.78 2.84 10/31/98 12.90 0.03 (1.84) (1.81) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 7.77 (0.10) (1.07) (1.17) 10/31/01 (8) 10.01 (0.05) (1.15) (1.20) 10/31/00 11.93 (0.17) (1.54) (1.71) 10/31/99 10.02 (0.03) 2.78 2.75 10/31/98 12.85 (0.04) (1.84) (1.88) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 7.77 (0.10) (1.07) (1.17) 10/31/01 (8) 10.01 (0.05) (1.15) (1.20) 10/31/00 (2) 11.93 (0.17) (1.54) (1.71) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 7.81 (0.10) (1.06) (1.16) 10/31/01 (8) 10.05 (0.04) (1.16) (1.20) 10/31/00 11.96 (0.16) (1.54) (1.70) 10/31/99 (2) 10.04 (0.02) 2.78 2.76 10/31/98 12.86 (0.03) (1.84) (1.87) - ---------------------------------------------------------------------------------------------------------- IDEX LKCM STRATEGIC TOTAL RETURN Class A 10/31/02 (8) 15.46 0.28 (1.11) (0.83) 10/31/01 (8) 17.02 0.30 (1.51) (1.21) 10/31/00 17.62 0.27 (0.15) 0.12 10/31/99 16.18 0.20 1.65 1.85 10/31/98 15.91 0.21 0.94 1.15 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 15.45 0.18 (1.11) (0.93) 10/31/01 (8) 17.01 0.19 (1.50) (1.31) 10/31/00 17.60 0.18 (0.15) 0.03 10/31/99 16.17 0.09 1.65 1.74 10/31/98 15.89 0.11 0.94 1.05 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 15.45 0.18 (1.11) (0.93) 10/31/01 (8) 17.01 0.19 (1.50) (1.31) 10/31/00 (2) 17.60 0.18 (0.15) 0.03 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 15.45 0.19 (1.10) (0.91) 10/31/01 (8) 17.01 0.20 (1.49) (1.29) 10/31/00 17.61 0.18 (0.15) 0.03 10/31/99 (2) 16.17 0.11 1.65 1.76 10/31/98 15.90 0.12 0.94 1.06 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX JANUS GROWTH & INCOME Class A $ -- $ -- $ -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- - ---------------------- IDEX JENNISON EQUITY OPPORTUNITY Class A -- -- -- -- (1.04) (1.04) -- (0.21) (0.21) -- (0.84) (0.84) -- (0.95) (0.95) - ---------------------- Class B -- -- -- -- (1.04) (1.04) -- (0.21) (0.21) -- (0.84) (0.84) -- (0.95) (0.95) - ---------------------- Class C -- -- -- -- (1.04) (1.04) -- (0.21) (0.21) - ---------------------- Class M -- -- -- -- (1.04) (1.04) -- (0.21) (0.21) -- (0.84) (0.84) -- (0.95) (0.95) - ---------------------- IDEX LKCM STRATEGIC TOTAL RETURN Class A (0.27) (0.02) (0.29) (0.26) (0.09) (0.35) (0.30) (0.42) (0.72) (0.20) (0.21) (0.41) (0.21) (0.67) (0.88) - ---------------------- Class B (0.17) (0.02) (0.19) (0.16) (0.09) (0.25) (0.20) (0.42) (0.62) (0.10) (0.21) (0.31) (0.10) (0.67) (0.77) - ---------------------- Class C (0.17) (0.02) (0.19) (0.16) (0.09) (0.25) (0.20) (0.42) (0.62) - ---------------------- Class M (0.19) (0.02) (0.21) (0.18) (0.09) (0.27) (0.21) (0.42) (0.63) (0.11) (0.21) (0.32) (0.12) (0.67) (0.79) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 192 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 7.26 (13.94)% $ 17,754 1.93% 2.28% (0.41)% 52.81% 8.44 (15.64) 3,881 1.75 3.26 0.34 44.00 - --------------------------------------------------------------------------------------------------------------------------- 7.16 (14.56) 15,868 2.58 2.93 (1.06) 52.81 8.38 (16.20) 11,884 2.40 3.91 (0.31) 44.00 - --------------------------------------------------------------------------------------------------------------------------- 7.16 (14.56) 3,441 2.58 2.93 (1.06) 52.81 8.38 (16.20) 2,469 2.40 3.91 (0.31) 44.00 - --------------------------------------------------------------------------------------------------------------------------- 7.17 (14.53) 1,864 2.48 2.83 (0.96) 52.81 8.39 (16.11) 1,698 2.30 3.81 (0.21) 44.00 - --------------------------------------------------------------------------------------------------------------------------- 6.88 (14.47) 21,836 1.75 1.82 (0.52) 97.50 8.04 (11.08) 17,670 1.55 2.44 (0.11) 157.51 10.26 (14.06) 4,147 1.55 2.66 (0.87) 244.18 12.14 30.07 4,537 1.64 2.87 (0.99) 125.60 10.14 (14.83) 4,284 1.85 2.44 (0.73) 147.01 - --------------------------------------------------------------------------------------------------------------------------- 6.60 (15.10) 37,363 2.40 2.47 (1.17) 97.50 7.77 (11.54) 31,922 2.20 3.09 (0.76) 157.51 10.01 (14.70) 3,483 2.20 3.31 (1.52) 244.18 11.93 29.45 3,868 2.29 3.52 (1.64) 125.60 10.02 (15.40) 2,460 2.50 3.09 (1.38) 147.01 - --------------------------------------------------------------------------------------------------------------------------- 6.60 (15.10) 8,957 2.40 2.47 (1.17) 97.50 7.77 (11.54) 7,211 2.20 3.09 (0.76) 157.51 10.01 (14.70) 271 2.20 3.31 (1.52) 244.18 - --------------------------------------------------------------------------------------------------------------------------- 6.65 (14.91) 8,055 2.30 2.37 (1.07) 97.50 7.81 (11.48) 5,994 2.10 2.99 (0.66) 157.51 10.05 (14.60) 946 2.10 3.21 (1.42) 244.18 11.96 29.54 1,338 2.19 3.42 (1.54) 125.60 10.04 (15.31) 879 2.40 2.99 (1.28) 147.01 - --------------------------------------------------------------------------------------------------------------------------- 14.34 (5.52) 31,303 1.55 1.85 1.77 13.92 15.46 (7.13) 37,253 1.55 1.74 1.80 22.54 17.02 0.64 40,919 1.55 1.69 1.59 56.08 17.62 11.61 37,959 1.64 1.79 1.20 60.18 16.18 7.43 32,055 1.85 1.92 1.30 32.12 - --------------------------------------------------------------------------------------------------------------------------- 14.33 (6.12) 16,072 2.20 2.51 1.12 13.92 15.45 (7.72) 19,236 2.20 2.39 1.15 22.54 17.01 0.03 19,375 2.20 2.34 0.94 56.08 17.60 10.91 15,531 2.29 2.44 0.55 60.18 16.17 6.74 9,789 2.50 2.57 0.65 32.12 - --------------------------------------------------------------------------------------------------------------------------- 14.33 (6.12) 2,778 2.20 2.50 1.12 13.92 15.45 (7.72) 2,989 2.20 2.39 1.15 22.54 17.01 0.03 2,523 2.20 2.34 0.94 56.08 - --------------------------------------------------------------------------------------------------------------------------- 14.33 (6.04) 3,934 2.10 2.41 1.22 13.92 15.45 (7.63) 5,547 2.10 2.29 1.25 22.54 17.01 0.12 7,026 2.10 2.24 1.04 56.08 17.61 11.02 8,779 2.19 2.34 0.65 60.18 16.17 6.85 6,977 2.40 2.47 0.75 32.12 - ---------------------------------------------------------------------------------------------------------------------------
193 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX MODERATE ASSET ALLOCATION Class A 10/31/02 (3)(8) $ 10.00 $ 0.04 $ (1.28) $ (1.24) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (3)(8) 10.00 0.01 (1.30) (1.29) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (3)(8) 10.00 0.01 (1.30) (1.29) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (3)(8) 10.00 0.01 (1.29) (1.28) - ---------------------------------------------------------------------------------------------------------- IDEX MODERATELY AGGRESSIVE ASSET ALLOCATION Class A 10/31/02 (3)(8) 10.00 0.02 (1.65) (1.63) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (3)(8) 10.00 (0.01) (1.66) (1.67) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (3)(8) 10.00 (0.01) (1.66) (1.67) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (3)(8) 10.00 (0.01) (1.65) (1.66) - ---------------------------------------------------------------------------------------------------------- IDEX MUNDER NET50 Class A 10/31/02 (8) 4.24 (0.08) (1.20) (1.28) 10/31/01 (8) 10.00 (0.06) (5.70) (5.76) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 4.19 (0.10) (1.19) (1.29) 10/31/01 (8) 10.00 (0.12) (5.69) (5.81) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 4.19 (0.11) (1.18) (1.29) 10/31/01 (8) 10.00 (0.07) (5.74) (5.81) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 4.20 (0.10) (1.19) (1.29) 10/31/01 (8) 10.00 (0.13) (5.67) (5.80) - ---------------------------------------------------------------------------------------------------------- IDEX PBHG MID CAP GROWTH Class A 10/31/02 (8) 9.24 (0.14) (1.72) (1.86) 10/31/01 (8) 20.94 (0.12) (11.58) (11.70) 10/31/00 14.80 (0.02) 6.47 6.45 10/31/99 10.00 0.02 4.78 4.80 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 9.05 (0.19) (1.69) (1.88) 10/31/01 (8) 20.76 (0.21) (11.50) (11.71) 10/31/00 14.76 (0.16) 6.47 6.31 10/31/99 10.00 (0.02) 4.78 4.76 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 9.05 (0.19) (1.69) (1.88) 10/31/01 (8) 20.76 (0.22) (11.49) (11.71) 10/31/00 14.76 (0.16) 6.47 6.31 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 9.08 (0.18) (1.70) (1.88) 10/31/01 (8) 20.79 (0.20) (11.51) (11.71) 10/31/00 14.77 (0.14) 6.47 6.33 10/31/99 10.00 (0.01) 4.78 4.77 - ---------------------------------------------------------------------------------------------------------- IDEX PBHG TECHNOLOGY & COMMUNICATIONS Class A 10/31/02 (8) 1.80 (0.03) (0.80) (0.83) 10/31/01 (8) 6.78 (0.04) (4.94) (4.98) 10/31/00 10.00 (0.02) (3.20) (3.22) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 1.75 (0.04) (0.78) (0.82) 10/31/01 (8) 6.73 (0.06) (4.92) (4.98) 10/31/00 10.00 (0.07) (3.20) (3.27) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 1.75 (0.04) (0.78) (0.82) 10/31/01 (8) 6.73 (0.06) (4.92) (4.98) 10/31/00 10.00 (0.07) (3.20) (3.27) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 1.76 (0.04) (0.78) (0.82) 10/31/01 (8) 6.74 (0.06) (4.92) (4.98) 10/31/00 10.00 (0.06) (3.20) (3.26) - ---------------------------------------------------------------------------------------------------------- IDEX PIMCO TOTAL RETURN Class A 10/31/02 (8) 10.00 0.13 0.28 0.41 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 10.00 0.09 0.29 0.38 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 10.00 0.09 0.29 0.38 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 10.00 0.11 0.27 0.38 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX MODERATE ASSET ALLOCATION Class A $ -- $ -- $ -- - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ---------------------- IDEX MODERATELY AGGRESSIVE ASSET ALLOCATION Class A -- -- -- - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ---------------------- IDEX MUNDER NET50 Class A -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- - ---------------------- IDEX PBHG MID CAP GROWTH Class A -- -- -- -- -- -- -- (0.31) (0.31) -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- (0.31) (0.31) -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- (0.31) (0.31) - ---------------------- Class M -- -- -- -- -- -- -- (0.31) (0.31) -- -- -- - ---------------------- IDEX PBHG TECHNOLOGY & COMMUNICATIONS Class A -- -- -- -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- -- -- -- - ---------------------- IDEX PIMCO TOTAL RETURN Class A (0.09) -- (0.09) - ---------------------- Class B (0.06) -- (0.06) - ---------------------- Class C (0.06) -- (0.06) - ---------------------- Class M (0.06) -- (0.06) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 194 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 8.76 (12.40)% $ 17,517 0.45% 0.78% 0.83% 11.95% - --------------------------------------------------------------------------------------------------------------------------- 8.71 (12.90) 38,969 1.10 1.43 0.18 11.95 - --------------------------------------------------------------------------------------------------------------------------- 8.71 (12.90) 25,444 1.10 1.43 0.18 11.95 - --------------------------------------------------------------------------------------------------------------------------- 8.72 (12.80) 11,125 1.00 1.33 0.28 11.95 - --------------------------------------------------------------------------------------------------------------------------- 8.37 (16.30) 20,681 0.45 0.90 0.41 20.88 - --------------------------------------------------------------------------------------------------------------------------- 8.33 (16.70) 33,241 1.10 1.55 (0.24) 20.88 - --------------------------------------------------------------------------------------------------------------------------- 8.33 (16.70) 17,719 1.10 1.55 (0.24) 20.88 - --------------------------------------------------------------------------------------------------------------------------- 8.34 (16.60) 12,611 1.00 1.45 (0.14) 20.88 - --------------------------------------------------------------------------------------------------------------------------- 2.96 (30.25) 287 1.93 8.95 (1.85) 56.88 4.24 (57.56) 521 1.75 11.85 (0.86) 49.39 - --------------------------------------------------------------------------------------------------------------------------- 2.90 (30.77) 461 2.58 9.60 (2.50) 56.88 4.19 (58.11) 740 2.40 12.50 (1.51) 49.39 - --------------------------------------------------------------------------------------------------------------------------- 2.90 (30.77) 162 2.58 9.60 (2.50) 56.88 4.19 (58.11) 189 2.40 12.50 (1.51) 49.39 - --------------------------------------------------------------------------------------------------------------------------- 2.91 (30.67) 56 2.48 9.50 (2.40) 56.88 4.20 (58.03) 86 2.30 12.40 (1.41) 49.39 - --------------------------------------------------------------------------------------------------------------------------- 7.38 (20.11) 16,555 1.73 2.75 (1.51) 176.30 9.24 (55.87) 23,952 1.55 2.12 (0.91) 171.89 20.94 43.78 48,842 1.55 2.06 (0.80) 129.20 14.80 48.06 2,571 1.55 6.95 (0.88) 150.78 - --------------------------------------------------------------------------------------------------------------------------- 7.17 (20.78) 22,081 2.38 3.40 (2.16) 176.30 9.05 (56.42) 34,017 2.20 2.77 (1.56) 171.89 20.76 43.07 68,184 2.20 2.71 (1.45) 129.20 14.76 47.63 2,875 2.20 7.60 (1.53) 150.78 - --------------------------------------------------------------------------------------------------------------------------- 7.17 (20.78) 5,226 2.38 3.40 (2.16) 176.30 9.05 (56.42) 8,595 2.20 2.77 (1.56) 171.89 20.76 43.07 16,972 2.20 2.71 (1.45) 129.20 - --------------------------------------------------------------------------------------------------------------------------- 7.20 (20.69) 3,061 2.28 3.30 (2.06) 176.30 9.08 (56.33) 5,502 2.10 2.67 (1.46) 171.89 20.79 43.17 14,734 2.10 2.61 (1.35) 129.20 14.77 47.70 1,016 2.10 7.50 (1.43) 150.78 - --------------------------------------------------------------------------------------------------------------------------- 0.97 (46.05) 5,048 1.93 3.59 (1.80) 252.79 1.80 (73.48) 9,544 1.75 2.65 (1.26) 270.29 6.78 (32.21) 26,933 1.75 2.27 (1.19) 142.19 - --------------------------------------------------------------------------------------------------------------------------- 0.93 (46.93) 8,421 2.58 4.25 (2.45) 252.79 1.75 (73.98) 16,284 2.40 3.30 (1.91) 270.29 6.73 (32.65) 40,165 2.40 2.92 (1.84) 142.19 - --------------------------------------------------------------------------------------------------------------------------- 0.93 (46.93) 2,221 2.58 4.25 (2.45) 252.79 1.75 (73.98) 4,078 2.40 3.30 (1.91) 270.29 6.73 (32.65) 11,750 2.40 2.92 (1.84) 142.19 - --------------------------------------------------------------------------------------------------------------------------- 0.94 (46.57) 1,168 2.48 4.15 (2.35) 252.79 1.76 (73.91) 2,626 2.30 3.20 (1.81) 270.29 6.74 (32.58) 9,361 2.30 2.82 (1.74) 142.19 - --------------------------------------------------------------------------------------------------------------------------- 10.32 4.13 40,767 1.65 1.81 2.28 240.42 - --------------------------------------------------------------------------------------------------------------------------- 10.32 3.80 30,909 2.30 2.46 1.63 240.42 - --------------------------------------------------------------------------------------------------------------------------- 10.32 3.80 11,667 2.30 2.46 1.63 240.42 - --------------------------------------------------------------------------------------------------------------------------- 10.32 3.85 4,333 2.20 2.36 1.73 240.42 - ---------------------------------------------------------------------------------------------------------------------------
195 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX PROTECTED PRINCIPAL STOCK Class A 10/31/02 (8) $ 10.00 $ (0.02) $ 0.03 $ 0.01 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 10.00 (0.04) 0.05 0.01 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 10.00 (0.04) 0.05 0.01 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 10.00 (0.04) 0.05 0.01 - ---------------------------------------------------------------------------------------------------------- IDEX SALOMON ALL CAP Class A 10/31/02 (8) 13.63 -- (3.15) (3.15) 10/31/01 (8) 15.51 0.12 (1.58) (1.46) 10/31/00 11.70 0.08 3.92 4.00 10/31/99 10.00 0.02 1.68 1.70 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 13.41 (0.10) (3.09) (3.19) 10/31/01 (8) 15.36 0.02 (1.55) (1.53) 10/31/00 11.66 (0.03) 3.92 3.89 10/31/99 10.00 (0.02) 1.68 1.66 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 13.42 (0.10) (3.10) (3.20) 10/31/01 (8) 15.36 0.02 (1.54) (1.52) 10/31/00 11.66 (0.03) 3.92 3.89 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 13.44 (0.08) (3.10) (3.18) 10/31/01 (8) 15.38 0.04 (1.56) (1.52) 10/31/00 11.67 (0.02) 3.92 3.90 10/31/99 10.00 (0.01) 1.68 1.67 - ---------------------------------------------------------------------------------------------------------- IDEX SALOMON INVESTORS VALUE Class A 10/31/02 (8) 12.55 0.04 (2.10) (2.06) 10/31/01 (8) 12.91 0.07 (0.42) (0.35) 10/31/00 11.28 0.09 1.54 1.63 10/31/99 11.09 0.05 0.41 0.46 10/31/98 11.71 0.03 (0.61) (0.58) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 12.19 (0.01) (2.06) (2.07) 10/31/01 (8) 12.61 (0.02) (0.39) (0.41) 10/31/00 11.09 (0.02) 1.54 1.52 10/31/99 10.98 (0.03) 0.41 0.38 10/31/98 11.67 (0.04) (0.61) (0.65) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 12.19 (0.01) (2.06) (2.07) 10/31/01 (8) 12.61 (0.02) (0.39) (0.41) 10/31/00 (2) 11.09 (0.02) 1.54 1.52 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 12.25 -- (2.07) (2.07) 10/31/01 (8) 12.66 (0.01) (0.39) (0.40) 10/31/00 11.12 -- 1.54 1.54 10/31/99 (2) 11.00 (0.02) 0.41 0.39 10/31/98 11.67 (0.02) (0.61) (0.63) - ---------------------------------------------------------------------------------------------------------- IDEX T. ROWE PRICE HEALTH SCIENCES Class A 10/31/02 (8) 10.00 (0.08) (1.64) (1.72) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 10.00 (0.11) (1.65) (1.76) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 10.00 (0.12) (1.64) (1.76) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 10.00 (0.12) (1.64) (1.76) - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX PROTECTED PRINCIPAL STOCK Class A $ -- $ -- $ -- - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ---------------------- IDEX SALOMON ALL CAP Class A -- (0.14) (0.14) -- (0.42) (0.42) -- (0.19) (0.19) -- -- -- - ---------------------- Class B -- (0.14) (0.14) -- (0.42) (0.42) -- (0.19) (0.19) -- -- -- - ---------------------- Class C -- (0.14) (0.14) -- (0.42) (0.42) -- (0.19) (0.19) - ---------------------- Class M -- (0.14) (0.14) -- (0.42) (0.42) -- (0.19) (0.19) -- -- -- - ---------------------- IDEX SALOMON INVESTORS VALUE Class A -- (0.28) (0.28) -- (0.01) (0.01) -- -- -- -- (0.27) (0.27) -- (0.04) (0.04) - ---------------------- Class B -- (0.28) (0.28) -- (0.01) (0.01) -- -- -- -- (0.27) (0.27) -- (0.04) (0.04) - ---------------------- Class C -- (0.28) (0.28) -- (0.01) (0.01) -- -- -- - ---------------------- Class M -- (0.28) (0.28) -- (0.01) (0.01) -- -- -- -- (0.27) (0.27) -- (0.04) (0.04) - ---------------------- IDEX T. ROWE PRICE HEALTH SCIENCES Class A -- -- -- - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 196 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 10.01 0.10% $ 10,381 2.25% 2.62% (0.70)% 14.30% - --------------------------------------------------------------------------------------------------------------------------- 10.01 0.10 47,170 2.90 3.28 (1.35) 14.30 - --------------------------------------------------------------------------------------------------------------------------- 10.01 0.10 6,969 2.90 3.28 (1.35) 14.30 - --------------------------------------------------------------------------------------------------------------------------- 10.01 0.10 4,076 2.80 3.18 (1.25) 14.30 - --------------------------------------------------------------------------------------------------------------------------- 10.34 (23.44) 57,528 1.55 1.65 (0.03) 162.46 13.63 (9.49) 77,791 1.58 1.68 0.75 81.62 15.51 34.50 25,575 1.55 2.41 0.45 91.39 11.70 17.03 1,880 1.55 8.85 0.35 82.70 - --------------------------------------------------------------------------------------------------------------------------- 10.08 (24.11) 130,709 2.20 2.30 (0.68) 162.46 13.41 (10.09) 167,214 2.23 2.33 0.10 81.62 15.36 33.72 38,203 2.20 3.06 (0.20) 91.39 11.66 16.60 1,571 2.20 9.50 (0.30) 82.70 - --------------------------------------------------------------------------------------------------------------------------- 10.08 (24.11) 35,248 2.20 2.30 (0.68) 162.46 13.42 (10.09) 46,369 2.23 2.33 0.10 81.62 15.36 33.72 10,675 2.20 3.06 (0.20) 91.39 - --------------------------------------------------------------------------------------------------------------------------- 10.12 (24.00) 37,471 2.10 2.20 (0.58) 162.46 13.44 (10.00) 52,684 2.13 2.23 0.20 81.62 15.38 33.84 10,785 2.10 2.96 (0.10) 91.39 11.67 16.67 728 2.10 9.40 (0.20) 82.70 - --------------------------------------------------------------------------------------------------------------------------- 10.21 (16.90) 46,960 1.55 1.91 0.56 100.83 12.55 (2.68) 12,176 1.55 1.93 0.48 29.40 12.91 14.38 8,431 1.55 2.20 0.40 49.75 11.28 4.34 7,972 1.64 2.28 0.21 26.29 11.09 (4.96) 8,035 1.85 2.51 -- 30.43 - --------------------------------------------------------------------------------------------------------------------------- 9.84 (17.47) 16,980 2.20 2.56 (0.09) 100.83 12.19 (3.31) 20,034 2.20 2.58 (0.17) 29.40 12.61 13.72 10,448 2.20 2.85 (0.25) 49.75 11.09 3.68 7,311 2.29 2.93 (0.44) 26.29 10.98 (5.55) 5,020 2.50 3.16 (0.65) 30.43 - --------------------------------------------------------------------------------------------------------------------------- 9.84 (17.47) 2,295 2.20 2.56 (0.09) 100.83 12.19 (3.31) 2,288 2.20 2.58 (0.17) 29.40 12.61 13.72 1,094 2.20 2.85 (0.25) 49.75 - --------------------------------------------------------------------------------------------------------------------------- 9.90 (17.35) 2,284 2.10 2.46 0.01 100.83 12.25 (3.21) 3,373 2.10 2.48 (0.07) 29.40 12.66 13.82 2,508 2.10 2.75 (0.15) 49.75 11.12 3.79 2,204 2.19 2.83 (0.34) 26.29 11.00 (5.46) 2,013 2.40 3.06 (0.55) 30.43 - --------------------------------------------------------------------------------------------------------------------------- 8.28 (17.20) 3,804 1.95 8.76 (1.51) 42.79 - --------------------------------------------------------------------------------------------------------------------------- 8.24 (17.60) 758 2.60 9.41 (2.16) 42.79 - --------------------------------------------------------------------------------------------------------------------------- 8.24 (17.60) 308 2.60 9.41 (2.16) 42.79 - --------------------------------------------------------------------------------------------------------------------------- 8.24 (17.60) 177 2.50 9.31 (2.06) 42.79 - ---------------------------------------------------------------------------------------------------------------------------
197 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX T. ROWE PRICE SMALL CAP Class A 10/31/02 (8) $ 9.46 $ (0.16) $ (1.47) $ (1.63) 10/31/01 (8) 13.17 (0.14) (3.56) (3.70) 10/31/00 11.01 (0.07) 2.51 2.44 10/31/99 10.00 0.02 0.99 1.01 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 9.29 (0.22) (1.44) (1.66) 10/31/01 (8) 13.05 (0.21) (3.54) (3.75) 10/31/00 10.97 (0.15) 2.51 2.36 10/31/99 10.00 (0.02) 0.99 0.97 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 9.29 (0.21) (1.45) (1.66) 10/31/01 (8) 13.05 (0.24) (3.51) (3.75) 10/31/00 10.97 (0.15) 2.51 2.36 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 9.31 (0.19) (1.46) (1.65) 10/31/01 (8) 13.07 (0.20) (3.55) (3.75) 10/31/00 10.98 (0.14) 2.51 2.37 10/31/99 10.00 (0.01) 0.99 0.98 - ---------------------------------------------------------------------------------------------------------- IDEX T. ROWE PRICE TAX-EFFICIENT GROWTH Class A 10/31/02 (8) 9.54 (0.02) (1.43) (1.45) 10/31/01 (8) 10.64 0.05 (1.13) (1.08) 10/31/00 10.20 0.08 0.44 0.52 10/31/99 10.00 0.06 0.18 0.24 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 9.49 (0.09) (1.41) (1.50) 10/31/01 (8) 10.63 (0.02) (1.12) (1.14) 10/31/00 10.19 0.02 0.44 0.46 10/31/99 10.00 0.01 0.18 0.19 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 9.49 (0.09) (1.41) (1.50) 10/31/01 (8) 10.63 (0.02) (1.12) (1.14) 10/31/00 10.19 0.02 0.44 0.46 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 9.49 (0.08) (1.41) (1.49) 10/31/01 (8) 10.63 (0.01) (1.13) (1.14) 10/31/00 10.19 0.03 0.44 0.47 10/31/99 10.00 0.02 0.18 0.20 - ---------------------------------------------------------------------------------------------------------- IDEX TRANSAMERICA CONSERVATIVE HIGH- YIELD BOND Class A 10/31/02 (8) 9.26 0.57 (1.31) (0.74) 10/31/01 (8) 9.24 0.72 0.01 0.73 10/31/00 9.67 0.69 (0.37) 0.32 10/31/99 10.43 0.65 (0.54) 0.11 10/31/98 10.96 0.69 (0.30) 0.39 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 9.26 0.52 (1.32) (0.80) 10/31/01 (8) 9.24 0.57 0.10 0.67 10/31/00 9.67 0.63 (0.37) 0.26 10/31/99 10.42 0.59 (0.54) 0.05 10/31/98 10.96 0.61 (0.30) 0.31 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 9.26 0.51 (1.32) (0.81) 10/31/01 (8) 9.24 0.52 0.15 0.67 10/31/00 (2) 9.67 0.63 (0.37) 0.26 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 9.26 0.53 (1.32) (0.79) 10/31/01 (8) 9.24 0.63 0.05 0.68 10/31/00 9.67 0.64 (0.37) 0.27 10/31/99 (2) 10.42 0.60 (0.54) 0.06 10/31/98 10.96 0.62 (0.30) 0.32 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX T. ROWE PRICE SMALL CAP Class A $ -- $ -- $ -- -- (0.01) (0.01) -- (0.28) (0.28) -- -- -- - ---------------------- Class B -- -- -- -- (0.01) (0.01) -- (0.28) (0.28) -- -- -- - ---------------------- Class C -- -- -- -- (0.01) (0.01) -- (0.28) (0.28) - ---------------------- Class M -- -- -- -- (0.01) (0.01) -- (0.28) (0.28) -- -- -- - ---------------------- IDEX T. ROWE PRICE TAX-EFFICIENT GROWTH Class A -- -- -- (0.02) -- (0.02) (0.08) -- (0.08) (0.04) -- (0.04) - ---------------------- Class B -- -- -- -- -- -- (0.02) -- (0.02) -- -- -- - ---------------------- Class C -- -- -- -- -- -- (0.02) -- (0.02) - ---------------------- Class M -- -- -- -- -- -- (0.03) -- (0.03) (0.01) -- (0.01) - ---------------------- IDEX TRANSAMERICA CONSERVATIVE HIGH- YIELD BOND Class A (0.59) -- (0.59) (0.71) -- (0.71) (0.69) (0.06) (0.75) (0.67) (0.20) (0.87) (0.70) (0.22) (0.92) - ---------------------- Class B (0.53) -- (0.53) (0.65) -- (0.65) (0.63) (0.06) (0.69) (0.60) (0.20) (0.80) (0.63) (0.22) (0.85) - ---------------------- Class C (0.53) -- (0.53) (0.65) -- (0.65) (0.63) (0.06) (0.69) - ---------------------- Class M (0.54) -- (0.54) (0.66) -- (0.66) (0.64) (0.06) (0.70) (0.61) (0.20) (0.81) (0.64) (0.22) (0.86) - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 198 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 7.83 (17.22)% $ 6,487 1.74% 2.67% (1.52)% 55.06% 9.46 (28.11) 7,067 1.55 2.56 (1.30) 48.58 13.17 22.31 8,262 1.55 2.83 (1.14) 52.97 11.01 10.13 1,272 1.55 7.93 (1.15) 42.52 - --------------------------------------------------------------------------------------------------------------------------- 7.63 (17.85) 8,860 2.39 3.32 (2.17) 55.06 9.29 (28.73) 9,496 2.20 3.21 (1.95) 48.58 13.05 21.63 8,119 2.20 3.48 (1.79) 52.97 10.97 9.70 1,135 2.20 8.58 (1.80) 42.52 - --------------------------------------------------------------------------------------------------------------------------- 7.63 (17.85) 1,975 2.39 3.32 (2.17) 55.06 9.29 (28.73) 1,943 2.20 3.21 (1.95) 48.58 13.05 21.63 1,626 2.20 3.48 (1.79) 52.97 - --------------------------------------------------------------------------------------------------------------------------- 7.66 (17.76) 1,547 2.29 3.22 (2.07) 55.06 9.31 (28.64) 2,161 2.10 3.11 (1.85) 48.58 13.07 21.73 2,489 2.10 3.38 (1.69) 52.97 10.98 9.77 685 2.10 8.48 (1.70) 42.52 - --------------------------------------------------------------------------------------------------------------------------- 8.09 (15.20) 21,389 1.68 1.95 (0.27) 75.50 9.54 (10.14) 8,552 1.55 2.07 0.47 30.02 10.64 5.14 5,452 1.55 2.68 0.66 58.32 10.20 2.40 1,840 1.55 7.57 1.09 20.48 - --------------------------------------------------------------------------------------------------------------------------- 7.99 (15.84) 11,897 2.33 2.60 (0.92) 75.50 9.49 (10.75) 15,500 2.20 2.72 (0.18) 30.02 10.63 4.49 7,597 2.20 3.33 0.01 58.32 10.19 1.96 2,134 2.20 8.22 0.44 20.48 - --------------------------------------------------------------------------------------------------------------------------- 7.99 (15.84) 2,920 2.33 2.60 (0.92) 75.50 9.49 (10.75) 3,419 2.20 2.72 (0.18) 30.02 10.63 4.49 1,935 2.20 3.33 0.01 58.32 - --------------------------------------------------------------------------------------------------------------------------- 8.00 (15.71) 2,082 2.23 2.50 (0.82) 75.50 9.49 (10.66) 2,888 2.10 2.62 (0.08) 30.02 10.63 4.59 1,916 2.10 3.23 0.11 58.32 10.19 2.03 1,058 2.10 8.12 0.54 20.48 - --------------------------------------------------------------------------------------------------------------------------- 7.93 (8.48) 60,332 1.35 1.35 6.61 64.29 9.26 8.12 50,755 1.41 1.41 7.35 16.01 9.24 3.37 49,259 1.36 1.36 7.34 11.37 9.67 1.09 59,082 1.38 1.38 6.41 26.95 10.43 3.54 63,494 1.24 1.24 6.38 53.09 - --------------------------------------------------------------------------------------------------------------------------- 7.93 (9.03) 31,336 2.00 2.00 5.96 64.29 9.26 7.45 35,471 2.06 2.06 6.70 16.01 9.24 2.74 13,808 2.01 2.01 6.69 11.37 9.67 0.38 12,930 2.03 2.03 5.76 26.95 10.42 2.87 5,041 1.89 1.89 5.73 53.09 - --------------------------------------------------------------------------------------------------------------------------- 7.92 (9.03) 6,340 2.00 2.00 5.96 64.29 9.26 7.45 8,267 2.06 2.06 6.70 16.01 9.24 2.74 1,025 2.01 2.01 6.69 11.37 - --------------------------------------------------------------------------------------------------------------------------- 7.93 (8.95) 5,934 1.90 1.90 6.06 64.29 9.26 7.56 8,005 1.96 1.96 6.80 16.01 9.24 2.84 4,319 1.91 1.91 6.79 11.37 9.67 0.54 5,515 1.93 1.93 5.86 26.95 10.42 2.97 4,073 1.79 1.79 5.83 53.09 - ---------------------------------------------------------------------------------------------------------------------------
199 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX TRANSAMERICA CONVERTIBLE SECURITIES Class A 10/31/02 (8) $ 10.00 $ 0.14 $ (0.67) $ (0.53) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 10.00 0.11 (0.68) (0.57) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 10.00 0.11 (0.68) (0.57) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 10.00 0.12 (0.68) (0.56) - ---------------------------------------------------------------------------------------------------------- IDEX TRANSAMERICA EQUITY Class A 10/31/02 (8) 6.38 (0.07) (0.79) (0.86) 10/31/01 (8) 10.16 (0.10) (3.68) (3.78) 10/31/00 10.00 (0.02) 0.18 0.16 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 6.29 (0.12) (0.77) (0.89) 10/31/01 (8) 10.12 (0.16) (3.67) (3.83) 10/31/00 10.00 (0.06) 0.18 0.12 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 6.29 (0.12) (0.77) (0.89) 10/31/01 (8) 10.12 (0.16) (3.67) (3.83) 10/31/00 10.00 (0.06) 0.18 0.12 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 6.31 (0.11) (0.78) (0.89) 10/31/01 (8) 10.12 (0.14) (3.67) (3.81) 10/31/00 10.00 (0.06) 0.18 0.12 - ---------------------------------------------------------------------------------------------------------- IDEX TRANSAMERICA GROWTH OPPORTUNITIES Class A 10/31/02 (8) 4.81 (0.06) 0.06 -- 10/31/01 (8) 8.70 (0.07) (3.82) (3.89) 10/31/00 10.00 (0.02) (1.28) (1.30) - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 4.73 (0.11) 0.08 (0.03) 10/31/01 (8) 8.66 (0.10) (3.83) (3.93) 10/31/00 10.00 (0.06) (1.28) (1.34) - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 4.74 (0.10) 0.06 (0.04) 10/31/01 (8) 8.66 (0.11) (3.81) (3.92) 10/31/00 10.00 (0.06) (1.28) (1.34) - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 4.75 (0.10) 0.07 (0.03) 10/31/01 (8) 8.67 (0.10) (3.82) (3.92) 10/31/00 10.00 (0.05) (1.28) (1.33) - ---------------------------------------------------------------------------------------------------------- IDEX TRANSAMERICA MONEY MARKET Class A 10/31/02 (8) 1.00 0.01 -- 0.01 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 1.00 -- -- -- - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 1.00 -- -- -- - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 1.00 -- -- -- - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX TRANSAMERICA CONVERTIBLE SECURITIES Class A $ (0.08) $ -- $ (0.08) - ---------------------- Class B (0.05) -- (0.05) - ---------------------- Class C (0.05) -- (0.05) - ---------------------- Class M (0.06) -- (0.06) - ---------------------- IDEX TRANSAMERICA EQUITY Class A -- -- -- -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- -- -- -- - ---------------------- IDEX TRANSAMERICA GROWTH OPPORTUNITIES Class A -- -- -- -- -- -- -- -- -- - ---------------------- Class B -- -- -- -- -- -- -- -- -- - ---------------------- Class C -- -- -- -- -- -- -- -- -- - ---------------------- Class M -- -- -- -- -- -- -- -- -- - ---------------------- IDEX TRANSAMERICA MONEY MARKET Class A (0.01) -- (0.01) - ---------------------- Class B -- -- -- - ---------------------- Class C -- -- -- - ---------------------- Class M -- -- -- - ----------------------
See notes to the Financial Highlights on page 202. The notes to the financial statements are an integral part of these statements. 200 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 9.39 (5.42)% $ 10,205 1.73% 3.85% 2.59% 170.42% - --------------------------------------------------------------------------------------------------------------------------- 9.38 (5.68) 1,138 2.38 4.50 1.94 170.42 - --------------------------------------------------------------------------------------------------------------------------- 9.38 (5.68) 934 2.38 4.50 1.94 170.42 - --------------------------------------------------------------------------------------------------------------------------- 9.38 (5.64) 308 2.28 4.40 2.04 170.42 - --------------------------------------------------------------------------------------------------------------------------- 5.52 (13.50) 25,127 1.74 2.32 (1.19) 19.45 6.38 (37.20) 2,750 1.55 2.75 (1.15) 41.51 10.16 1.60 3,053 1.55 6.10 (1.18) 12.86 - --------------------------------------------------------------------------------------------------------------------------- 5.40 (14.22) 2,732 2.39 2.98 (1.84) 19.45 6.29 (37.78) 3,070 2.20 3.40 (1.80) 41.51 10.12 1.17 2,840 2.20 6.75 (1.83) 12.86 - --------------------------------------------------------------------------------------------------------------------------- 5.40 (14.22) 914 2.39 2.98 (1.84) 19.45 6.29 (37.78) 1,318 2.20 3.40 (1.80) 41.51 10.12 1.17 1,118 2.20 6.75 (1.83) 12.86 - --------------------------------------------------------------------------------------------------------------------------- 5.42 (14.08) 735 2.29 2.88 (1.74) 19.45 6.31 (37.69) 794 2.10 3.30 (1.70) 41.51 10.12 1.24 969 2.10 6.65 (1.73) 12.86 - --------------------------------------------------------------------------------------------------------------------------- 4.81 0.05 12,687 1.74 2.53 (1.35) 31.83 4.81 (44.76) 3,807 1.55 2.83 (1.11) 58.64 8.70 (12.96) 3,726 1.55 4.54 (1.23) 18.58 - --------------------------------------------------------------------------------------------------------------------------- 4.70 (0.70) 5,897 2.39 3.18 (2.00) 31.83 4.73 (45.35) 4,513 2.20 3.48 (1.76) 58.64 8.66 (13.39) 4,366 2.20 5.19 (1.88) 18.58 - --------------------------------------------------------------------------------------------------------------------------- 4.70 (0.70) 1,569 2.39 3.18 (2.00) 31.83 4.74 (45.35) 1,530 2.20 3.48 (1.76) 58.64 8.66 (13.39) 1,704 2.20 5.19 (1.88) 18.58 - --------------------------------------------------------------------------------------------------------------------------- 4.72 (0.52) 909 2.29 3.08 (1.90) 31.83 4.75 (45.26) 1,174 2.10 3.38 (1.66) 58.64 8.67 (13.33) 2,090 2.10 5.09 (1.78) 18.58 - --------------------------------------------------------------------------------------------------------------------------- 1.00 0.56 131,949 0.83 1.36 0.93 N/A - --------------------------------------------------------------------------------------------------------------------------- 1.00 0.28 81,683 1.48 2.01 0.28 N/A - --------------------------------------------------------------------------------------------------------------------------- 1.00 0.28 20,139 1.48 2.01 0.28 N/A - --------------------------------------------------------------------------------------------------------------------------- 1.00 0.30 9,862 1.38 1.91 0.38 N/A - ---------------------------------------------------------------------------------------------------------------------------
201 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS (CONTINUED) For a share of beneficial interest outstanding throughout each period:
INVESTMENT OPERATIONS NET ASSET YEAR OR VALUE, NET NET REALIZED PERIOD BEGINNING INVESTMENT AND UNREALIZED TOTAL ENDED OF PERIOD INCOME (LOSS) GAIN (LOSS) OPERATIONS IDEX TRANSAMERICA VALUE BALANCED Class A 10/31/02 (8) $ 11.67 $ 0.18 $ (1.65) $ (1.47) 10/31/01 (8) 12.75 0.26 (0.51) (0.25) 10/31/00 11.79 0.30 1.01 1.31 10/31/99 13.14 0.27 (0.73) (0.46) 10/31/98 13.19 0.22 0.67 0.89 - ---------------------------------------------------------------------------------------------------------- Class B 10/31/02 (8) 11.66 0.11 (1.65) (1.54) 10/31/01 (8) 12.74 0.18 (0.50) (0.32) 10/31/00 11.78 0.23 1.01 1.24 10/31/99 13.13 0.19 (0.73) (0.54) 10/31/98 13.18 0.14 0.67 0.81 - ---------------------------------------------------------------------------------------------------------- Class C 10/31/02 (8) 11.66 0.12 (1.66) (1.54) 10/31/01 (8) 12.74 0.17 (0.49) (0.32) 10/31/00 11.78 0.23 1.01 1.24 - ---------------------------------------------------------------------------------------------------------- Class M 10/31/02 (8) 11.66 0.11 (1.63) (1.52) 10/31/01 (8) 12.74 0.19 (0.50) (0.31) 10/31/00 11.78 0.24 1.01 1.25 10/31/99 13.13 0.20 (0.73) (0.53) 10/31/98 13.18 0.15 0.67 0.82 - ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS FROM NET FROM NET INVESTMENT REALIZED TOTAL INCOME GAINS DISTRIBUTIONS IDEX TRANSAMERICA VALUE BALANCED Class A $ (0.16) $ (0.35) $ (0.51) (0.26) (0.57) (0.83) (0.35) -- (0.35) (0.24) (0.65) (0.89) (0.21) (0.73) (0.94) - ---------------------- Class B (0.08) (0.35) (0.43) (0.19) (0.57) (0.76) (0.28) -- (0.28) (0.16) (0.65) (0.81) (0.13) (0.73) (0.86) - ---------------------- Class C (0.08) (0.35) (0.43) (0.19) (0.57) (0.76) (0.28) -- (0.28) - ---------------------- Class M (0.10) (0.35) (0.45) (0.20) (0.57) (0.77) (0.29) -- (0.29) (0.17) (0.65) (0.82) (0.14) (0.73) (0.87) - ----------------------
NOTES TO FINANCIAL HIGHLIGHTS The financial highlights provide a per share breakdown of the components that affect the Funds' net asset value (NAV) for current and past reporting periods. Amounts indicated by a dash (--) are either zero or less than one-half of a penny. The financial highlights also provide total return, asset size, expense ratios and portfolio turnover rate (as applicable). (1) Ratio of Expenses to Average Net Assets shows: Net (net expense ratio which is total expenses less fee waivers and reimbursements by the investment adviser). Gross (total expenses not taking into account fee waivers and reimbursements by the investment adviser or affiliated brokerage and custody earnings credits, if any). (2) On March 1, 1999, the fund changed the load and expense structure of C shares and renamed them M shares. On November 1, 1999, the funds began offering new Class C shares for sale. (3) Recognition of net investment income is affected by the timing of dividend declarations by the investee funds. Expenses of the investee funds are excluded from the fund's expense ratios. (4) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Periods of less than one year are not annualized. (5) Periods of less than one year are annualized. (6) Periods of less than one year are not annualized. (7) Net Investment Income, the Ratio of Net Investment Income to Average Net Assets and the Portfolio Turnover Rate reflect activity relating to a non-recurring initiative to invest in dividend producing securities. (8) Calculated based on average number of shares outstanding during the period. The notes to the financial statements are an integral part of these statements. 202 IDEX MUTUAL FUNDS ANNUAL REPORT 2002
RATIOS/SUPPLEMENTAL DATA NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF RATIO OF EXPENSES TO AVERAGE NET INCOME (LOSS) PORTFOLIO END TOTAL PERIOD ASSETS (1) (5) TO AVERAGE TURNOVER OF PERIOD RETURN (4) (000'S) NET GROSS NET ASSETS (1) (5) RATE (6) $ 9.69 (13.20)% $ 11,020 1.55% 1.89% 1.56% 81.51% 11.67 (2.13) 13,880 1.55 1.95 2.04 49.85 12.75 11.43 9,850 1.55 2.02 2.50 28.15 11.79 (3.74) 12,377 1.66 1.85 2.12 82.20 13.14 7.25 15,747 1.85 1.87 1.82 55.45 - --------------------------------------------------------------------------------------------------------------------------- 9.69 (13.72) 12,038 2.20 2.54 0.91 81.51 11.66 (2.74) 16,180 2.20 2.60 1.39 49.85 12.74 10.76 9,193 2.20 2.67 1.85 28.15 11.78 (4.36) 12,171 2.31 2.50 1.47 82.20 13.13 6.56 14,679 2.50 2.52 1.17 55.45 - --------------------------------------------------------------------------------------------------------------------------- 9.69 (13.72) 3,999 2.20 2.54 0.91 81.51 11.66 (2.74) 3,619 2.20 2.60 1.39 49.85 12.74 10.76 565 2.20 2.67 1.85 28.15 - --------------------------------------------------------------------------------------------------------------------------- 9.69 (13.64) 3,050 2.10 2.44 1.01 81.51 11.66 (2.65) 4,866 2.10 2.50 1.49 49.85 12.74 10.86 2,868 2.10 2.57 1.95 28.15 11.78 (4.26) 4,689 2.21 2.40 1.57 82.20 13.13 6.67 7,342 2.40 2.42 1.27 55.45 - ---------------------------------------------------------------------------------------------------------------------------
203 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 204 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES: IDEX Mutual Funds is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. IDEX Mutual Funds currently consists of thirty-eight series or "funds" (each a "Fund" and collectively the "Funds"). All Funds are diversified except IDEX Janus Capital Appreciation, IDEX Salomon All Cap, IDEX PBHG Technology & Communications, IDEX T. Rowe Price Health Sciences, IDEX Great Companies - America(SM) and IDEX Great Companies - Technology(SM). On March 1, 2002, the following IDEX Funds changed their names: IDEX Pilgrim Baxter Mid Cap Growth changed to IDEX PBHG Mid Cap Growth IDEX Pilgrim Baxter Technology changed to IDEX PBHG Technology & Communications IDEX AEGON Income Plus changed to IDEX Transamerica Conservative High-Yield Bond IDEX NWQ Value Equity changed to IDEX Salomon Investors Value IDEX T. Rowe Price Dividend Growth changed to IDEX T. Rowe Price Tax-Efficient Growth IDEX Transamerica Small Companies changed to IDEX Transamerica Growth Opportunities On March 1, 2002, IDEX GE U.S. Equity acquired all the net assets of IDEX American Century Income & Growth pursuant to a plan of reorganization approved by shareholders of IDEX American Century Income & Growth on February 22, 2002. The acquisition was accomplished by a tax-free exchange of 1,149,768 shares of IDEX American Century Income & Growth (valued at $11,599,976) for the 1,250,793 shares of IDEX GE U.S. Equity outstanding on February 28, 2002. IDEX American Century Income & Growth net assets at that date ($11,599,976), including $144,721 of unrealized depreciation, were combined with those of IDEX GE U.S. Equity. The aggregate net assets of IDEX GE U.S. Equity and IDEX American Century Income & Growth immediately before the acquisition were $26,182,557 and $11,599,976, respectively. Immediately following the merger, IDEX GE U.S. Equity was renamed IDEX American Century Income & Growth. On March 1, 2002, IDEX International Equity acquired all the net assets of IDEX American Century International pursuant to a plan of reorganization approved by shareholders of IDEX American Century International on February 22, 2002. The acquisition was accomplished by a tax-free exchange of 447,087 shares of IDEX American Century International (valued at $3,604,813) for the 448,932 shares of IDEX International Equity outstanding on February 28, 2002. IDEX American Century International's net assets at that date ($3,604,813), including $8,184 of unrealized appreciation were combined with those of IDEX International Equity. The aggregate net assets of IDEX International Equity and IDEX American Century International immediately before the acquisition were $11,513,667 and $3,604,813, respectively. Immediately following the merger, IDEX International Equity was renamed IDEX American Century International. Shares of beneficial interest transactions issued in connection with acquisition:
- ------------------------------------------------------------------------------------------------------------------ IDEX AMERICAN CENTURY IDEX AMERICAN CENTURY INCOME & GROWTH INTERNATIONAL ---------------------- --------------------- SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------ Proceeds in connection with the acquisition (amounts in thousands) Class A 363 $ 3,678 117 $ 951 Class B 581 5,853 205 1,646 Class C 111 1,115 80 646 Class M 95 954 45 362 ------- ------ $11,600 $3,605 ======= ====== - ------------------------------------------------------------------------------------------------------------------
Each period reported within the Annual Report reflects a twelve-month period, except as follows:
FUND INCEPTION DATE - ---- -------------- IDEX Aggressive Asset Allocation 3/1/2002 IDEX American Century Income & Growth (formerly IDEX GE U.S. Equity) 3/1/2000 IDEX American Century International (formerly IDEX International Equity) 2/1/1997 IDEX Conservative Asset Allocation 3/1/2002 IDEX Gabelli Global Growth 9/15/2000 IDEX Goldman Sachs Growth 3/1/1999 IDEX Great Companies - America(SM) 7/14/2000 IDEX Great Companies - Global(2) 9/15/2000 IDEX Great Companies - Technology(SM) 7/14/2000 IDEX Isabelle Small Cap Value 4/2/2001 IDEX Janus Growth & Income 12/15/2000 IDEX Moderate Asset Allocation 3/1/2002 IDEX Moderately Aggressive Asset Allocation 3/1/2002 IDEX Munder Net50 12/15/2000 IDEX PBHG Mid Cap Growth (formerly IDEX Pilgrim Baxter Mid Cap Growth) 3/1/1999 IDEX PBHG Technology & Communications (formerly IDEX Pilgrim Baxter Technology) 3/1/2000 IDEX PIMCO Total Return 3/1/2002 IDEX Protected Principal Stock Fund 7/1/2002 IDEX Salomon All Cap 3/1/1999
IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 205 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
FUND INCEPTION DATE - ---- -------------- IDEX T. Rowe Price Health Sciences 3/1/2002 IDEX T. Rowe Price Small Cap 3/1/1999 IDEX T. Rowe Price Tax-Efficient Growth (formerly IDEX T. Rowe Price Dividend Growth) 3/1/1999 IDEX Transamerica Convertible Securities 3/1/2002 IDEX Transamerica Equity 3/1/2000 IDEX Transamerica Growth Opportunities (formerly IDEX Transamerica Small Company) 3/1/2000 IDEX Transamerica Money Market 3/1/2002
MULTIPLE CLASS OPERATIONS AND EXPENSES: The Funds currently offer for sale four classes of shares (five classes for IDEX Janus Growth), each with a public offering price that reflects different sales charges, if any, and expense levels. Income, non-class specific expenses and realized and unrealized gains and losses are allocated daily to each class based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses. IDEX Protected Principal Stock, IDEX Janus Growth Class T and IDEX Munder Net50 are closed to new shareholders. The following policies were consistently followed by the Funds, in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In preparing the Funds' financial statements in accordance with GAAP, estimates or assumptions (which could differ from actual results) may be used that affect reported amounts and disclosures. SECURITY VALUATIONS: Fund investments traded on an exchange are stated at the last reported sales price on the day of valuation on the exchange where the security is principally traded. Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price. Debt securities are valued by independent pricing services; however, those that mature in sixty days or less and all securities in the IDEX Transamerica Money Market Fund are valued at amortized cost, which approximates market. Option contracts are valued at the average of the bid and ask ("Mean Quote") established each day at the close of the board of trade or exchange on which they are traded. Other securities for which quotations are not readily available are valued at fair value determined in such a manner as the adviser and sub-advisers, under the supervision of the Board of Trustees and the Fund's Valuation Committee, determine in good faith. CASH: The Funds may leave cash overnight in their cash accounts with the Custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Funds to invest the Funds excess cash into a savings account, which as of October 31, 2002, was paying an interest rate of 1.05%. SECURITIES LENDING: Most of the Funds may lend securities to enhance fund earnings from investing cash collateral received in making such loans to qualified borrowers (typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a lending agent to administer its securities lending program. IBT earns a portion of program net income for its services. When a Fund makes a security loan, it receives cash collateral as protection against risk the borrower will default on the loan, and records an asset for the cash/invested collateral and a liability for the return of the collateral. Securities on loan continue to be included in investment securities at market value on the Statement of Assets and Liabilities and remain on the Schedule of Investments. Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of the securities on loan and not less than 100% thereafter. The Funds may invest cash collateral in short-term money market instruments including: U.S. Treasury Bills, U.S. agency obligations, commercial paper, money market mutual funds, repurchase agreements and other highly rated, liquid investments. During the life of securities loans, the collateral and securities loaned remain subject to fluctuation in market value. IBT marks to market securities loaned and the collateral each business day. If additional collateral is due (at least $1,000), IBT collects additional cash collateral from the borrowers. Although securities loaned will be fully collateralized at all times, IBT may experience delays in, or may be prevented from, recovering the collateral on behalf of a Fund. A Fund may recall a loaned security position at any time from the borrower through IBT. In the event the borrower fails to timely return a recalled security, IBT indemnifies a Fund by purchasing replacement securities for the Fund as its own expense and claiming the collateral to fund such a purchase. IBT absorbs the loss if the collateral value is not sufficient to cover the cost of the replacement securities. If replacement securities are not available, IBT will credit the equivalent cash value to the Fund(s). The following information is as of October 31, 2002:
MARKET VALUE OF VALUE OF SECURITIES COLLATERAL AND FUND INCOME ON LOAN INDEMNIFICATION ---- ------- --------------- --------------- IDEX Alger Aggressive Growth $ 6,687 $ 15,981,167 $ 16,520,988 IDEX American Century Income & Growth 868 2,301,659 2,399,181 IDEX American Century International 581 740,351 772,687 IDEX Gabelli Global Growth 5,212 4,732,694 5,072,458 IDEX Great Companies - America(SM) 3,203 2,117,454 2,181,964 IDEX Isabelle Small Cap Value 9,250 13,836,113 14,427,001 IDEX Janus Balanced 12,678 45,304,395 46,484,308 IDEX Janus Capital Appreciation 6,298 17,393,829 17,970,460 IDEX Janus Flexible Income 16,353 31,142,770 31,864,120 IDEX Janus Global 29,648 68,824,608 71,970,969
IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 206 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
MARKET VALUE OF VALUE OF SECURITIES COLLATERAL AND FUND INCOME ON LOAN INDEMNIFICATION ---- ------- --------------- --------------- IDEX Janus Growth $47,833 $151,543,335 $156,969,383 IDEX Janus Growth & Income 784 2,780,411 2,869,776 IDEX Jennison Equity Opportunity 8,463 14,317,549 15,020,396 IDEX LKCM Strategic Total Return 811 2,696,049 2,788,200 IDEX PBHG Mid Cap Growth 4,015 12,654,873 13,117,292 IDEX PIMCO Total Return 776 1,869,817 1,915,180 IDEX Salomon All Cap 10,577 48,507,413 50,982,025 IDEX Salomon Investors Value 1,241 4,420,146 4,620,980 IDEX T. Rowe Price Small Cap 1,537 4,646,902 4,831,012 IDEX T. Rowe Price Tax-Efficient Growth 654 1,415,257 1,463,700 IDEX Transamerica Conservative High-Yield Bond 10,691 8,940,944 9,079,170 IDEX Transamerica Value Balanced 1,822 5,283,215 5,458,630
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are accounted for on the trade date. Security gains and losses are calculated on the specific identification basis. Dividend income is recorded on the ex-dividend date or, in the case of foreign securities, as soon as a Fund is informed of the ex-dividend date. Interest income, adjusted for discounts and premiums, is recorded on the accrual basis commencing on the settlement date. Net earnings from securities lending activity is included in interest income on the Statement of Operations. FOREIGN CURRENCY DENOMINATED INVESTMENTS: The accounting records of the Funds are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the closing exchange rate each day. The cost of foreign securities is translated at the exchange rate in effect when the investment was acquired. The Funds combine fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gains or losses from investments. Net foreign currency gains and losses resulting from changes in exchange rates include: 1) foreign currency fluctuations between trade date and settlement date of investment security transactions; 2) gains and losses on forward foreign currency contracts; and 3) the difference between the receivable amounts of interest and dividends recorded in the accounting records in U.S. dollars and the amounts actually received. Foreign currency denominated assets may involve risks not typically associated with domestic transactions, including unanticipated movements in exchange currency rates, the degree of government supervision and regulation of security markets, and the possibility of political or economic instability. FORWARD FOREIGN CURRENCY CONTRACTS: The Funds may enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Contracts are valued at the contractual forward rate and are marked to market daily, with the change in market value recorded as an unrealized gain or loss. When the contracts are closed a realized gain or loss is incurred. Risks may arise from changes in market value of the underlying currencies and from the possible inability of counterparties to meet the terms of their contracts. FUTURES AND OPTIONS CONTRACTS: The Funds may enter into futures and/or options contracts to manage exposure to market, interest rate or currency fluctuations. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Option contracts are valued at the average of the bid and ask ("Mean Quote") established each day at the close of the board of trade or exchange on which they are traded. The primary risks associated with futures contracts and options are imperfect correlation between the change in market value of the securities held and the prices of futures contracts and options; the possibility of an illiquid market and inability of the counterparty to meet the contract terms. When a Fund writes a covered call or put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. For IDEX Protected Principal Stock substantially all the fund's common stocks are memo pledged as collateral by the custodian for the listed short index option contracts written by the fund. The custodian uses the escrow receipt depository of the Options Clearing Corporation ("OCC") to effect pledging while maintaining custody of the stock positions, rather than delivering them to broker-dealers. The OCC guarantees the obligations of the contracts that they clear are fulfilled. IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 207 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Transactions in written call and put options were as follows:
- -------------------------------------------------------------------------------------------------------------------------- IDEX PIMCO Total IDEX Protected IDEX T. Rowe Price IDEX Transamerica Return Principal Stock Health Sciences Value Balanced -------------------- ----------------------- -------------------- --------------------- Premium Contracts Premium Contracts Premium Contracts Premium Contracts - -------------------------------------------------------------------------------------------------------------------------- Balance at 10/31/2001 $ -- -- $ -- -- $ -- -- $ 751,139 3,080 Sales 114,054 1,653 8,246,303 3,217 77,063 443 840,856 4,674 Closing Buys (30,753) (1,140) (5,206,313) (2,106) (45,127) (238) (147,821) (945) Expirations (11,225) (400) (1,369,758) (384) (5,258) (37) (581,649) (2,831) Exercised -- -- -- -- -- -- (227,073) (1,193) --------------------------------------------------------------------------------------------- Balance at 10/31/2002 $ 72,076 113 $ 1,670,232 727 $26,708 168 $ 635,452 2,785 - --------------------------------------------------------------------------------------------------------------------------
SHORT SALES: The Funds may enter into short sales of equity securities. In the event that the value of the security that the Fund sold short declines, the Fund will gain as it repurchases the security in the market at the lower price. If the price of the security increases, the Fund will incur a loss as it repurchases the security at the higher price. Short sales may incur higher transaction costs than regular securities transactions. There were no short sales outstanding in the Funds at October 31, 2002. IDEX PROTECTED PRINCIPAL STOCK GUARANTEE: The fund's adviser, AEGON/Transamerica Fund Advisers, Inc. ("ATFA"), guarantees shareholders a Guaranteed Amount five years after the end of the Offering Period. The Guaranteed Amount will be no less than the value of that shareholder's account on the Investment Date, less extraordinary charges, provided that shareholders have reinvested all dividends and distributions in additional shares and have redeemed no shares ("Guarantee"). Please see the Prospectus and the Statement of Additional Information for further information on the Guarantee. FEDERAL TAXES: No provisions for Federal income or excise taxes have been made as the Funds intend to distribute substantially all net income and realized gains to shareholders and otherwise qualify as regulated investment companies under the Internal Revenue Code. DIVIDEND DISTRIBUTIONS: Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with Federal income tax regulations which may differ from GAAP. Reclassifications are made to each Fund's components of net assets to reflect income and gains available for distribution (or available capital loss carryforwards) under Federal income tax regulations. Certain reclassification adjustments are made among undistributed net investment income, undistributed net realized gains and shares of beneficial interest due to different book and tax accounting for such items as wash sales, foreign currency transactions, net operating losses and capital loss carryforwards. NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS: ATFA became the Funds' investment adviser as of March 1, 2002, by assuming the management and advisory agreements from IDEX Management, Inc. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Funds' administrator. AFSG Securities Corp. ("AFSG") is the Funds' distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc. (ATIS) is the Funds' transfer agent. ATFA and ATFS are wholly owned subsidiaries of Western Reserve Life Assurance Co. of Ohio ("WRL"). ATIS and AFSG are 100% owned by AUSA Holding Company ("AUSA"). WRL and AUSA are wholly owned indirect subsidiaries of AEGON NV, a Netherlands corporation. INVESTMENT ADVISORY AND DISTRIBUTION AND SERVICE FEES: The Funds pay management and investment advisory fees each month based upon average daily net assets to ATFA, who will reimburse the Funds to the extent that certain operating expenses exceed the stated annual limitation, if any. The Funds (except IDEX Janus Growth Class T) have a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Funds. The 12b-1 fee for all Funds is comprised of a 0.25% service fee and the remaining amount is an asset-based sales charge/distribution fee. Class A, B, C, and M for IDEX Aggressive Asset Allocation, IDEX Conservative Asset Allocation, IDEX Moderate Asset Allocation and IDEX Moderately Aggressive Asset Allocation (collectively, the "Asset Allocation Funds") are authorized under the fund's 12b-1 plan to pay fees up to 0.35%, 1.00%, 1.00%, and 0.90%, respectively. In addition, the underlying funds' Class A shares in which the Asset Allocation Funds' invest impose a 0.35% 12b-1 fee. To avoid duplication of 12b-1 fees, each class of fund shares of the Asset Allocation Funds has reduced the 12b-1 fees by the amount of the underlying funds' Class A 12b-1 fees. ATFA has entered into sub-advisory agreements with various management companies to provide investment services to the Funds. ATFA compensates the sub-advisers as described in the Prospectus. AEGON USA Investment Management, Inc., Transamerica Investment Management, LLC and Great Companies, L.L.C. are affiliates of the Funds and are sub-advisers to certain Funds. IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 208 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS (CONTINUED): Management fees paid to ATFA for its services and other information for the period ended October 31, 2002 are as follows:
-------------------------------------------------------------------------------------------------------- Annual Rates -------------------------------------------------------------------- Expense Limit Class A Class B Class C Class M Management (excluding 12b-1 12b-1 12b-1 12b-1 Fee (1) 12b-1 fees) Fee Fee Fee Fee -------------------------------------------------------------------------------------------------------- IDEX Aggressive Asset Allocation 0.10% 0.45% NA .65% .65% .55% IDEX Alger Aggressive Growth 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX American Century Income & Growth 0.90% 1.50% 0.35% 1.00% 1.00% 0.90% IDEX American Century International 1.00% 1.60% 0.35% 1.00% 1.00% 0.90% IDEX Conservative Asset Allocation 0.10% 0.45% NA .65% .65% .55% IDEX Federated Tax Exempt 0.60% 1.00% 0.35% 1.00% 1.00% 0.60% IDEX Gabelli Global Growth 1.00% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX Goldman Sachs Growth 0.80% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX Great Companies - America(SM) 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX Great Companies - Global(2) 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX Great Companies - Technology(SM) 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX Isabelle Small Cap Value 0.90% 1.50% 0.35% 1.00% 1.00% 0.90% IDEX Janus Balanced * 1.00% 1.50% 0.35% 1.00% 1.00% 0.90% IDEX Janus Capital Appreciation * 1.00% 1.50% 0.35% 1.00% 1.00% 0.90% IDEX Janus Flexible Income ** 0.90% 1.50% 0.35% 1.00% 1.00% 0.90% IDEX Janus Global 1.00% -none- 0.35% 1.00% 1.00% 0.90% IDEX Janus Growth * 1.00% 1.50% 0.35% 1.00% 1.00% 0.90% IDEX Janus Growth & Income (3) 1.00% 1.60% 0.35% 1.00% 1.00% 0.90% IDEX Jennison Equity Opportunity (4) 0.80% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX LKCM Strategic Total Return 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX Moderate Asset Allocation 0.10% 0.45% NA .65% .65% .55% IDEX Moderately Aggressive Asset Allocation 0.10% 0.45% NA .65% .65% .55% IDEX Munder Net50 (3) 1.00% 1.60% 0.35% 1.00% 1.00% 0.90% IDEX PBHG Mid Cap Growth 0.80% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX PBHG Technology & Communications 1.00% 1.60% 0.35% 1.00% 1.00% 0.90% IDEX PIMCO Total Return 0.70% 1.30% 0.35% 1.00% 1.00% 0.90% IDEX Protected Principal Stock 1.30% 1.90% 0.35% 1.00% 1.00% 0.90% IDEX Salomon All Cap 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX Salomon Investors Value 0.80% 1.20% 0.35% 1.00% 1.00% 0.90% IDEX T. Rowe Price Health Sciences 1.00% 1.60% 0.35% 1.00% 1.00% 0.90% IDEX T. Rowe Price Small Cap (4) 0.80% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX T. Rowe Price Tax-Efficient Growth (5) 0.75% 1.35% 0.35% 1.00% 1.00% 0.90% IDEX Transamerica Conservative High Yield Bond 0.60% 1.25% 0.35% 1.00% 1.00% 0.90% IDEX Transamerica Convertible Securities (6) 0.75% 1.35% 0.35% 1.00% 1.00% 0.90% IDEX Transamerica Equity (4) 0.80% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX Transamerica Growth Opportunities (4) 0.80% 1.40% 0.35% 1.00% 1.00% 0.90% IDEX Transamerica Money Market 0.40% 0.48% 0.35% 1.00% 1.00% 0.90% IDEX Transamerica Value Balanced 0.75% 1.20% 0.35% 1.00% 1.00% 0.90% -------------------------------------------------------------------------------------------------------- ---------------------------------- ---------------------------------------- Underwriter Commissions (2) ---------------------------------------- Received Retained Contingent by by Sales Underwriter Underwriter Charges ---------------------------------- ---------------------------------------- IDEX Aggressive Asset Allocation $ 307,311 $ 279,135 $ 10,911 IDEX Alger Aggressive Growth 331,502 288,638 196,125 IDEX American Century Income & Growth 126,349 113,032 82,609 IDEX American Century International 43,724 40,307 30,421 IDEX Conservative Asset Allocation 352,531 311,775 9,381 IDEX Federated Tax Exempt 72,497 62,320 58,225 IDEX Gabelli Global Growth 156,468 134,551 81,167 IDEX Goldman Sachs Growth 110,186 101,737 71,456 IDEX Great Companies - America(SM) 776,059 680,251 205,405 IDEX Great Companies - Global(2) 69,555 59,525 13,842 IDEX Great Companies - Technology(SM) 113,938 98,355 26,365 IDEX Isabelle Small Cap Value 451,219 395,695 76,299 IDEX Janus Balanced * 592,657 530,205 774,727 IDEX Janus Capital Appreciation * 184,653 164,922 267,753 IDEX Janus Flexible Income ** 277,579 240,487 181,496 IDEX Janus Global 368,406 327,091 645,852 IDEX Janus Growth * 1,716,593 1,492,025 1,116,786 IDEX Janus Growth & Income (3) 101,665 87,796 66,046 IDEX Jennison Equity Opportunity (4) 389,554 349,218 158,110 IDEX LKCM Strategic Total Return 119,055 105,830 57,639 IDEX Moderate Asset Allocation 672,565 604,196 19,325 IDEX Moderately Aggressive Asset Allocation 860,366 768,370 21,034 IDEX Munder Net50 (3) 4,438 3,826 5,790 IDEX PBHG Mid Cap Growth 129,882 115,519 119,285 IDEX PBHG Technology & Communications 81,167 72,652 60,278 IDEX PIMCO Total Return 132,319 116,391 29,394 IDEX Protected Principal Stock 399,801 341,737 54,668 IDEX Salomon All Cap 1,055,062 938,246 729,626 IDEX Salomon Investors Value 105,926 94,876 71,972 IDEX T. Rowe Price Health Sciences 10,755 9,473 1,420 IDEX T. Rowe Price Small Cap (4) 80,883 69,700 45,275 IDEX T. Rowe Price Tax-Efficient Growth (5) 77,489 67,693 60,288 IDEX Transamerica Conservative High Yield Bond 215,148 184,814 154,133 IDEX Transamerica Convertible Securities (6) 36,161 30,207 716 IDEX Transamerica Equity (4) 33,436 28,830 13,792 IDEX Transamerica Growth Opportunities (4) 40,731 36,058 22,344 IDEX Transamerica Money Market 34,104 37,960 338,960 IDEX Transamerica Value Balanced 77,208 69,420 41,307 ----------------------------------
* ATFA will waive advisory fees as follows: .025% of average daily net assets from $100-$500 million (net .975%); .075% from $500-$750 million (net .925%); .025% from $750 million-$1 billion (net .875%); and .025% over $1 billion (net .825%). ** ATFA will waive advisory fees as follows: .025% of average daily net assets for the first $100 million (net .875%); .025% from $100-$250 million (net .775%); and .025% over $250 million (net .675%). IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 209 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS (CONTINUED): (1) Management fee represents each Fund's initial breakpoint based on its net assets and fee waiver. Annual fees are computed daily and paid monthly based upon the following stated breakpoints: For services to IDEX Aggressive Asset Allocation, IDEX Conservative Asset Allocation, IDEX Moderate Asset Allocation and IDEX Moderately Aggressive Asset Allocation, ATFA receives 0.10% of the Fund's average daily net assets. For services to IDEX Alger Aggressive Growth, IDEX Goldman Sachs Growth, IDEX Great Companies - America(SM), IDEX Great Companies Global(2), IDEX Great Companies - Technology(SM), IDEX Jennison Equity Opportunity, IDEX LKCM Strategic Total Return, IDEX Salomon Investors Value, IDEX PBHG Mid Cap Growth, IDEX Salomon All Cap, IDEX T. Rowe Price Small Cap, IDEX Transamerica Equity and IDEX Transamerica Growth Opportunities, ATFA receives 0.80% of the first $500 million of each Fund's average daily net assets, and 0.70% of each Fund's average daily net assets over $500 million. For services to IDEX Transamerica Value Balanced, ATFA receives 0.75% of the first $500 million of the Fund's average daily net assets, and 0.65% of the Fund's average daily net assets over $500 million. For services to IDEX T. Rowe Price Tax-Efficient Growth, ATFA receives 0.75% of the first $100 million of the Fund's average daily net assets, 0.80% of the next $150 million of the Fund's average daily net assets, 0.75% of the next $250 million of the Fund's average daily net assets, and 0.65% of the Fund's average daily net assets over $500 million. For services to IDEX Janus Global, ATFA receives 1.00% of the first $750 million of the Fund's average daily net assets, 0.90% of the next $250 million of the Fund's average daily net assets, and 0.85% of the Fund's average daily net assets in excess of $1 billion. For services to IDEX Janus Balanced, IDEX Janus Capital Appreciation and IDEX Janus Growth, ATFA receives 1.00% of the first $250 million of each Fund's average daily net assets, 0.90% of the next $500 million of each Fund's average daily net assets, 0.80% of the next $750 million of each Fund's average daily net assets and 0.70% of each Fund's average daily net assets in excess of $1.5 billion. For services to IDEX Janus Growth & Income, ATFA receives 1.00% of the first $100 million of the Fund's average daily net assets, 0.95% of the next $400 million of the Fund's average daily net assets, and 0.85% of the Fund's average daily net assets over $500 million. For services to IDEX Transamerica Conservative High-Yield Bond and IDEX Federated Tax Exempt, ATFA receives 0.60% of each Fund's average daily net assets. For services to IDEX American Century Income & Growth, ATFA receives 0.90% of the first $100 million of the Fund's average daily net assets, 0.85% of the next $150 million of the Fund's average daily net assets, and 0.80% of the Fund's average daily net assets over $250 million. For services to IDEX American Century International, ATFA receives 1.00% of the first $50 million of the Fund's average daily net assets, 0.95% of the next $100 million of the Fund's average daily net assets, 0.90% of the next $350 million of the Fund's average daily net assets, and 0.85% of the Fund's average daily net assets over $500 million. For services to IDEX Gabelli Global Growth, ATFA receives 1.00% of the first $500 million of the Fund's average daily net assets, 0.90% of average daily net assets from $500 million to $1 billion, and 0.80% of the Fund's average daily net assets over $1 billion. For services to IDEX Isabelle Small Cap Value, ATFA receives 0.90% of the first $200 million of the Fund's average daily net assets, and 0.85% of the Fund's average daily net assets over $200 million. For services to IDEX Janus Flexible Income, ATFA receives 0.90% of the first $100 million of the Fund's average daily net assets, 0.80% of the next $150 million of the Fund's average daily net assets, and 0.70% of the Fund's average daily net assets over $250 million. For services to IDEX Munder Net50, ATFA receives 1.00% of the first $1 billion of the Fund's average daily net assets, and 0.95% of the Fund's average daily net assets over $1 billion. For services to IDEX PBHG Technology & Communications, ATFA receives 1.00% of the first $500 million of the Fund's average daily net assets, and 0.90% of the Fund's average daily net assets over $500 million. For services to IDEX PIMCO Total Return, ATFA receives 0.70% of the Fund's average daily net assets. For services to IDEX Protected Principal Stock, ATFA receives 1.30% of the first $100 million of the Fund's average daily net assets, and 1.25% of the Fund's average daily net assets in excess of $100 million. For services to IDEX T. Rowe Price Health Sciences, ATFA receives 1.00% of the first $500 million of the Fund's average daily net assets, and 0.95% of the Fund's average daily net assets in excess of $500 million. For services to IDEX Transamerica Convertible Securities, ATFA receives 0.75% of the Fund's average daily net assets. For services to IDEX Transamerica Money Market, ATFA receives 0.40% of the Fund's average daily net assets. (2) Underwriter Commissions relate to front-end sales charges imposed for Class A, M and T shares and contingent deferred sales charges result from Class B, Class M an certain Class A share redemptions. (3) Expense limit (excluding 12b-1 fees) was 1.40% through 12/01/01 then changed to 1.60% through 10/31/02. (4) Expense limit (excluding 12b-1 fees) was 1.20% through 12/01/01 then changed to 1.40% through 10/31/02. (5) Expense limit (excluding 12b-1 fees) was 1.20% through 12/01/01 then changed to 1.35% through 10/31/02. (6) Expense limit (excluding 12b-1 fees) was 1.40% through 7/01/02 then changed to 1.35% through 10/31/02. TRANSFER AGENCY FEES AND EXPENSES: Each Fund incurs ATIS annual per-account charges of $15.39 for each open shareholder account, $2.73 for each new account opened, $1.63 for each closed account maintained, and certain out-of-pocket expenses. IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 210 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS (CONTINUED): ADMINISTRATION EXPENSES: Effective July 1, 2002, the Funds entered into an agreement with ATFS for financial and legal fund administration services which include such items as compliance, expenses, financial statement and other reporting, distributions, tax returns, prospectus preparation, board of trustees meeting support and other legal matters. The Funds are provided these services at cost for which ATFS is reimbursed monthly. CUSTODY EARNINGS CREDITS: Effective July 1, 2002, Investors Bank & Trust Company ("IBT") became custodian for the Funds. The predecessor custodian was State Street Bank and Trust Company. Custody earnings credits represent reductions in IBT's fees in lieu of interest income earned on incidental uninvested cash balances. Any such credits are included in interest income on the Statement of Operations. BROKERAGE COMMISSIONS: Brokerage commissions incurred on security transactions placed with an affiliate of its sub-adviser for the year or period ended October 31, 2002 are as follows: IDEX Alger Aggressive Growth, $643,849; IDEX American Century Income & Growth, $61; IDEX American Century International, $1,579; IDEX Gabelli Global Growth, $23,767; IDEX Goldman Sachs Growth, $704; IDEX Salomon All Cap, $20,607; and IDEX Salomon Investors Value, $5,847. DEFERRED COMPENSATION PLAN: Each eligible Fund Trustee may elect participation in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees may defer payment of a percentage of their total fees earned as a Fund Trustee. These deferred amounts may be invested in any IDEX Fund. Contributions made under the Plan and appreciation (depreciation) and income of Plan assets are included in Trustees fees and expenses. At October 31, 2002, invested plan amounts are included in Other Assets, and the total liability for deferred compensation to Trustees is included in Other Liabilities as follows: IDEX Aggressive Asset Allocation $ 114 IDEX Alger Aggressive Growth 7,943 IDEX American Century Income & Growth 350 IDEX American Century International 470 IDEX Conservative Asset Allocation 147 IDEX Federated Tax Exempt 1,988 IDEX Gabelli Global Growth 535 IDEX Goldman Sachs Growth 431 IDEX Great Companies - America(SM) 1,241 IDEX Great Companies - Global(2) 134 IDEX Great Companies - Technology(SM) 183 IDEX Isabelle Small Cap Value 575 IDEX Janus Balanced 10,050 IDEX Janus Capital Appreciation 6,785 IDEX Janus Flexible Income 2,582 IDEX Janus Global 43,080 IDEX Janus Growth 146,116 IDEX Janus Growth & Income 278 IDEX Jennison Equity Opportunity 1,248 IDEX LKCM Strategic Total Return 3,236 IDEX Moderate Asset Allocation $ 310 IDEX Moderately Aggressive Asset Allocation 301 IDEX Munder Net50 729 IDEX PBHG Mid Cap Growth 1,390 IDEX PBHG Technology & Communications 678 IDEX PIMCO Total Return 276 IDEX Protected Principal Stock 176 IDEX Salomon All Cap 3,502 IDEX Salomon Investors Value 374 IDEX T. Rowe Price Health Sciences 20 IDEX T. Rowe Price Small Cap 344 IDEX T. Rowe Price Tax-Efficient Growth 425 IDEX Transamerica Conservative High-Yield Bond 5,966 IDEX Transamerica Convertible Securities 45 IDEX Transamerica Equity 182 IDEX Transamerica Growth Opportunity 203 IDEX Transamerica Money Market 1,266 IDEX Transamerica Value Balanced 2,206 -------- Total IDEX $245,879 ========
IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 211 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 3. INVESTMENT TRANSACTIONS: The cost of securities purchased and proceeds from securities sold (excluding short-term securities and other investments usually held to maturity) for the year ended October 31, 2002 were as follows:
Non-U.S. Non-U.S. U.S. U.S. Government Government Government Government Purchases Sales Purchases Sales ------------ -------------- ------------ ------------ IDEX Aggressive Asset Allocation $ 38,672,266 $ 5,054,598 $ -- $ -- IDEX Alger Aggressive Growth 281,850,037 272,381,799 -- 35,951,059 IDEX American Century Income & Growth 63,142,803 50,325,417 1,177,704 427,085 IDEX American Century International 52,023,230 38,231,528 -- -- IDEX Conservative Asset Allocation 50,487,403 1,720,525 -- -- IDEX Federated Tax Exempt 25,707,812 17,653,354 -- -- IDEX Gabelli Global Growth 54,501,720 64,031,711 -- 989,446 IDEX Goldman Sachs Growth 13,335,652 10,669,561 400,964 -- IDEX Great Companies - America(SM) 89,573,481 34,798,335 -- -- IDEX Great Companies - Global(2) 15,258,754 8,357,589 -- -- IDEX Great Companies - Technology(SM) 14,577,141 10,884,373 -- -- IDEX Isabelle Small Cap Value 95,616,954 11,130,363 -- -- IDEX Janus Balanced 232,817,552 244,288,884 128,262,996 143,062,845 IDEX Janus Capital Appreciation 79,844,102 119,898,242 -- -- IDEX Janus Flexible Income 134,380,545 109,901,521 182,780,848 152,330,083 IDEX Janus Global 511,473,707 669,899,476 1,967,229 959,415 IDEX Janus Growth 925,417,542 1,330,529,752 21,494,777 -- IDEX Janus Growth & Income 31,213,193 12,413,861 3,063,869 513,971 IDEX Jennison Equity Opportunity 106,005,110 74,055,135 -- -- IDEX LKCM Strategic Total Return 8,577,620 11,328,392 -- 2,021,783 IDEX Moderate Asset Allocation 99,551,111 5,074,873 -- -- IDEX Moderately Aggressive Asset Allocation 96,888,936 8,650,754 -- -- IDEX Munder Net50 873,270 796,887 -- -- IDEX PBHG Mid Cap Growth 107,948,402 119,060,694 -- -- IDEX PBHG Technology & Communications 68,894,247 69,714,347 -- -- IDEX PIMCO Total Return 63,787,554 10,934,945 121,193,660 85,902,146 IDEX Protected Principal Stock 76,515,338 9,186,552 -- -- IDEX Salomon All Cap 567,650,185 507,855,819 -- -- IDEX Salomon Investors Value 81,140,717 42,667,004 1,545,238 2,081,000 IDEX T. Rowe Price Health Sciences 6,468,166 1,219,330 -- -- IDEX T. Rowe Price Small Cap 15,781,238 12,682,512 -- -- IDEX T. Rowe Price Tax-Efficient Growth 39,258,681 25,540,999 698,891 19,325 IDEX Transamerica Conservative High-Yield Bond 66,882,225 47,333,607 7,992,344 10,203,906 IDEX Transamerica Convertible Securities 23,293,599 10,029,987 -- -- IDEX Transamerica Equity 24,058,289 2,721,607 -- -- IDEX Transamerica Growth Opportunities 14,084,720 4,513,031 -- -- IDEX Transamerica Money Market -- -- -- -- IDEX Transamerica Value Balanced 19,237,670 18,559,251 12,754,323 7,484,180
IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 212 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 4. INFORMATION FOR FEDERAL INCOME TAX PURPOSES: It is the Fund's policy to distribute substantially all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for items including, but not limited to, wash sales, foreign currency transactions, net operating losses and capital loss carryforwards. The tax character of distributions paid may differ from the character of distributions shown in the Statement of Changes in Net Assets due to short-term gains being treated as ordinary income for tax purposes. The tax character of distributions paid during 2001 and 2002 was as follows:
2001 Distributions 2002 Distributions paid from: paid from: ------------------------- ------------------------- Ordinary Long-term Ordinary Long-term Fund Income Capital Gains Income Capital Gains - ------------------------------------------------------------ -------- ------------- -------- ------------- IDEX Aggressive Asset Allocation $ -- $ -- $ -- $ -- IDEX Alger Aggressive Growth -- 6,491 -- -- IDEX American Century Income & Growth -- -- -- -- IDEX American Century International 452 1,016 -- -- IDEX Conservative Asset Allocation -- -- -- -- IDEX Federated Tax Exempt* 968 -- 1,117 -- IDEX Gabelli Global Growth 105 4 -- -- IDEX Goldman Sachs Growth 211 79 -- -- IDEX Great Companies - America(SM) -- -- -- -- IDEX Great Companies - Global(2) 16 -- -- -- IDEX Great Companies - Technology(SM) -- -- -- -- IDEX Isabelle Small Cap Value -- -- -- -- IDEX Janus Balanced 7,136 6,821 5,352 -- IDEX Janus Capital Appreciation -- -- -- -- IDEX Janus Flexible Income 2,872 -- 4,727 12 IDEX Janus Global -- 109,642 -- -- IDEX Janus Growth -- 297,064 -- -- IDEX Janus Growth & Income -- -- -- -- IDEX Jennison Equity Opportunity 852 39 -- -- IDEX LKCM Strategic Total Return 939 380 952 68 IDEX Moderate Asset Allocation -- -- -- -- IDEX Moderately Aggressive Asset Allocation -- -- -- -- IDEX Munder Net50 -- -- -- -- IDEX PBHG Mid Cap Growth -- -- -- -- IDEX PBHG Technology & Communications -- -- -- -- IDEX PIMCO Total Return -- -- 360 -- IDEX Protected Principal Stock -- -- -- -- IDEX Salomon All Cap 3,136 -- 3,106 600 IDEX Salomon Investors Value 12 -- 186 699 IDEX T. Rowe Price Health Sciences -- -- -- -- IDEX T. Rowe Price Small Cap -- 23 -- -- IDEX T. Rowe Price Tax-Efficient Growth 11 -- 15 -- IDEX Transamerica Conservative High-Yield Bond 6,120 -- 6,675 -- IDEX Transamerica Convertible Securities -- -- 64 -- IDEX Transamerica Equity -- -- -- -- IDEX Transamerica Growth Opportunities -- -- -- -- IDEX Transamerica Money Market -- -- 662 -- IDEX Transamerica Value Balanced 760 838 751 821 - --------------------------------------------------------------------------------------------------------------------
* IDEX Federated Tax Exempt's distributed and undistributed ordinary income is tax exempt. IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 213 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 4. INFORMATION FOR FEDERAL INCOME TAX PURPOSES (CONTINUED): The tax basis components of available earnings for distribution at October 31, 2002, were as the follows:
Undistributed Undistributed Ordinary Long-term Fund Income Capital Gains - ------------------------------------------------------------ ------------- ------------- IDEX Aggressive Asset Allocation $ -- $ -- IDEX Alger Aggressive Growth -- -- IDEX American Century Income & Growth -- -- IDEX American Century International -- -- IDEX Conservative Asset Allocation Fund 98 -- IDEX Federated Tax Exempt* 53 -- IDEX Gabelli Global Growth -- -- IDEX Goldman Sachs Growth -- -- IDEX Great Companies - America(SM) -- -- IDEX Great Companies - Global(2) -- -- IDEX Great Companies - Technology(SM) -- -- IDEX Isabelle Small Cap Value -- -- IDEX Janus Balanced 564 -- IDEX Janus Capital Appreciation -- -- IDEX Janus Flexible Income 223 -- IDEX Janus Global -- -- IDEX Janus Growth -- -- IDEX Janus Growth & Income -- -- IDEX Jennison Equity Opportunity -- -- IDEX LKCM Strategic Total Return 64 -- IDEX Moderate Asset Allocation 94 -- IDEX Moderately Aggressive Asset Allocation -- -- IDEX Munder Net50 -- -- IDEX PBHG Mid Cap Growth -- -- IDEX PBHG Technology & Communications -- -- IDEX PIMCO Total Return 1,236 208 IDEX Protected Principal Stock 3,493 1,422 IDEX Salomon All Cap -- -- IDEX Salomon Investors Value 63 573 IDEX T. Rowe Price Health Sciences -- -- IDEX T. Rowe Price Small Cap -- -- IDEX T. Rowe Price Tax-Efficient Growth -- -- IDEX Transamerica Conservative High-Yield Bond 705 -- IDEX Transamerica Convertible Securities 33 -- IDEX Transamerica Equity -- -- IDEX Transamerica Growth Opportunities -- -- IDEX Transamerica Money Market 88 -- IDEX Transamerica Value Balanced 67 -- - --------------------------------------------------------------------------------------------
* IDEX Federated Tax Exempt's distributed and undistributed ordinary income is tax exempt. IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 214 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 4. INFORMATION FOR FEDERAL INCOME TAX PURPOSES (CONTINUED): The aggregate cost of investments and composition of unrealized appreciation (depreciation) for federal income tax purposes as of October 31, 2002, is as follows:
Unrealized Unrealized Net unrealized Cost of appreciation of depreciation of appreciation securities investments investments (depreciation) ------------------ --------------- ----------------- -------------- IDEX Aggressive Asset Allocation $ 32,902 $ -- $ (2,959) $ (2,959) IDEX Alger Aggressive Growth 119,166 6,423 (11,353) (4,930) IDEX American Century Income & Growth 35,331 444 (6,961) (6,517) IDEX American Century International 23,087 388 (1,427) (1,039) IDEX Conservative Asset Allocation 48,615 320 (1,098) (778) IDEX Federated Tax Exempt 39,084 1,583 (129) 1,454 IDEX Gabelli Global Growth 41,270 2,676 (14,229) (11,553) IDEX Goldman Sachs Growth 33,758 710 (9,107) (8,397) IDEX Great Companies - America(SM) 147,392 1,539 (26,622) (25,083) IDEX Great Companies - Global(2) 18,104 242 (2,641) (2,399) IDEX Great Companies - Technology(SM) 20,237 272 (7,747) (7,475) IDEX Isabelle Small Cap Value 96,636 5,841 (24,212) (18,371) IDEX Janus Balanced 369,247 17,791 (25,348) (7,557) IDEX Janus Capital Appreciation 101,469 5,464 (18,531) (13,067) IDEX Janus Flexible Income 143,406 5,614 (372) 5,242 IDEX Janus Global 569,188 18,013 (97,012) (78,999) IDEX Janus Growth 1,233,611 65,550 (264,436) (198,886) IDEX Janus Growth & Income 34,649 587 (4,269) (3,682) IDEX Jennison Equity Opportunity 84,314 2,049 (14,675) (12,626) IDEX LKCM Strategic Total Return 55,910 4,849 (6,941) (2,092) IDEX Moderate Asset Allocation 93,857 443 (4,583) (4,140) IDEX Moderately Aggressive Asset Allocation 86,999 258 (5,899) (5,641) IDEX Munder Net50 1,695 46 (809) (763) IDEX PBHG Mid Cap Growth 40,757 3,246 (1,968) 1,278 IDEX PBHG Technology & Communications 17,435 616 (2,902) (2,286) IDEX PIMCO Total Return 109,117 709 (694) 15 IDEX Protected Principal Stock 70,159 1,899 (7,263) (5,364) IDEX Salomon All Cap 337,323 6,369 (81,674) (75,305) IDEX Salomon Investors Value 74,735 1,098 (13,157) (12,059) IDEX T. Rowe Price Health Sciences 5,261 235 (536) (301) IDEX T. Rowe Price Small Cap 24,044 1,471 (6,707) (5,236) IDEX T. Rowe Price Tax-Efficient Growth 43,307 967 (6,167) (5,200) IDEX Transamerica Conservative High-Yield Bond 110,433 2,337 (18,035) (15,698) IDEX Transamerica Convertible Securities 12,525 233 (373) (140) IDEX Transamerica Equity 29,362 946 (3,612) (2,666) IDEX Transamerica Growth Opportunities 19,373 1,687 (2,317) (630) IDEX Transamerica Money Market 241,392 -- -- -- IDEX Transamerica Value Balanced 31,785 1,380 (4,556) (3,176)
As of October 31, 2002, the following Funds have capital loss carryforwards available through the date specified to offset future realized net capital gains. IDEX Aggressive Asset Allocation $ 716 October 31, 2010 IDEX Alger Aggressive Growth 90,423 October 31, 2009 48,961 October 31, 2010 IDEX American Century Income & Growth 787 October 31, 2009 3,478 October 31, 2010 IDEX American Century International 4,622 October 31, 2009 3,367 October 31, 2010 IDEX Conservative Asset Allocation 151 October 31, 2010 IDEX Federated Tax Exempt 1,016 October 31, 2008 IDEX Gabelli Global Growth 3,705 October 31, 2009 13,689 October 31, 2010
IDEX MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 - -------------------------------------------------------------------------------- 215 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 NOTE 4. INFORMATION FOR FEDERAL INCOME TAX PURPOSES (CONTINUED): IDEX Goldman Sachs Growth $ 1,802 October 31, 2009 4,581 October 31, 2010 IDEX Great Companies - America(SM) 4,113 October 31, 2009 6,883 October 31, 2010 IDEX Great Companies - Global(2) 1,792 October 31, 2009 836 October 31, 2010 IDEX Great Companies - Technology(SM) 5,516 October 31, 2009 7,851 October 31, 2010 IDEX Isabelle Small Cap Value 70 October 31, 2009 2,556 October 31, 2010 IDEX Janus Balanced 23,179 October 31, 2009 40,239 October 31, 2010 IDEX Janus Capital Appreciation 26,385 October 31, 2008 200,845 October 31, 2009 83,414 October 31, 2010 IDEX Janus Flexible Income 564 October 31, 2010 IDEX Janus Global 176,064 October 31, 2009 205,203 October 31, 2010 IDEX Janus Growth 633,224 October 31, 2009 259,422 October 31, 2010 IDEX Janus Growth & Income 658 October 31, 2009 3,893 October 31, 2010 IDEX Jennison Equity Opportunity 2,778 October 31, 2009 8,055 October 31, 2010 IDEX LKCM Strategic Total Return 1,365 October 31, 2010 IDEX Moderate Asset Allocation 620 October 31, 2010 IDEX Moderately Aggressive Asset Allocation 1,239 October 31, 2010 IDEX Munder Net50 465 October 31, 2009 688 October 31, 2010 IDEX PBHG Mid Cap Growth 2,311 October 31, 2008 94,547 October 31, 2009 17,137 October 31, 2010 IDEX PBHG Technology & Communications 4,982 October 31, 2008 74,863 October 31, 2009 25,321 October 31, 2010 IDEX PIMCO Total Return 0 N/A IDEX Protected Principal Stock 0 N/A IDEX Salomon All Cap 60,548 October 31, 2010 IDEX Salomon Investors Value 0 N/A IDEX T. Rowe Price Health Sciences 68 October 31, 2010 IDEX T. Rowe Price Small Cap 1,832 October 31, 2009 4,119 October 31, 2010 IDEX T. Rowe Price Tax-Efficient Growth 32 October 31, 2007 378 October 31, 2008 219 October 31, 2009 1,976 October 31, 2010 IDEX Transamerica Conservative High-Yield Bond 1,984 October 31, 2008 1,519 October 31, 2009 5,469 October 31, 2010 IDEX Transamerica Convertible Securities 377 October 31, 2010 IDEX Transamerica Equity 71 October 31, 2008 2,496 October 31, 2009 1,197 October 31, 2010 IDEX Transamerica Growth Opportunities 203 October 31, 2008 6,251 October 31, 2009 1,290 October 31, 2010 IDEX Transamerica Money Market 0 N/A IDEX Transamerica Value Balanced 5,015 October 31, 2010
216 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Trustees and Shareholders of IDEX Mutual Funds In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the series constituting IDEX Mutual Funds (hereafter referred to as the "Fund") at October 31, 2002, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Tampa, Florida December 13, 2002 217 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) Section 270.30d-1 under the Investment Company Act of 1940, as amended, titled "Reports to Stockholders of Management Companies," requires regulated investment companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, IDEX Mutual Funds solicited a vote by the shareholders for: At a special meeting of shareholders held on DECEMBER 14, 2001, the results of Proposals, were as follows: IDEX TRANSAMERICA VALUE BALANCED PROPOSAL 1: Approval of a new Investment Advisory Agreement between IDEX Mutual Funds and IDEX Management, Inc., with respect to the Fund.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 94.04% 1.20% 4.76%
PROPOSAL 2: Approval of a new Sub-Advisory Agreement between IDEX Management, Inc. and Transamerica Investment Management, LLC, on behalf of the Fund.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 93.24% 1.72% 5.04%
PROPOSAL 3: Approval to adopt a Sub-Adviser Approval Policy with respect to the Fund.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 93.29% 2.03% 4.69%
PROPOSAL 4: Re-election of the current Trustees of the IDEX Board of Trustees and election of two new Trustees to the Board.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Patrick S. Baird 98.63% 1.37% 0.00% Peter R. Brown 98.63% 1.37% 0.00% Daniel Calabria 98.63% 1.37% 0.00% Janice B. Case 98.25% 1.75% 0.00% Charles C. Harris 98.63% 1.37% 0.00% John R. Kenney 98.63% 1.37% 0.00% Russell A. Kimball, Jr. 98.25% 1.75% 0.00% William W. Short, Jr. 98.61% 1.39% 0.00% Jack E. Zimmerman 98.63% 1.37% 0.00%
PROPOSAL 5(A): Approval to change fundamental investment restriction #8 concerning the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 91.63% 1.81% 6.57%
PROPOSAL 5(B): Approval to change the description of fundamental investment restriction #1 concerning diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 91.65% 2.19% 6.57%
PROPOSAL 5(C): Approval to change fundamental investment restriction #2 concerning industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 91.84% 2.35% 5.81%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 218 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 At a special meeting of shareholders held on FEBRUARY 8, 2002, the results of the Proposals were as follows: IDEX ALGER AGGRESSIVE GROWTH PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.04% 3.96% 0.00% Charles C. Harris 96.06% 3.94% 0.00% John R. Kenney 96.04% 3.96% 0.00% Patrick S. Baird 96.08% 3.92% 0.00% Jack E. Zimmerman 96.04% 3.96% 0.00% William W. Short, Jr. 96.06% 3.94% 0.00% Daniel Calabria 96.07% 3.93% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.00% 4.00% 0.00% Janice B. Case 95.96% 4.04% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.88% 2.21% 27.91%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.09% 2.32% 27.59%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.28% 2.01% 27.71%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Fred Alger Management, Inc. with respect to IDEX Alger Aggressive Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.84% 3.43% 27.73%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 219 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX FEDERATED TAX EXEMPT PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 93.74% 6.26% 0.00% Charles C. Harris 93.86% 6.14% 0.00% John R. Kenney 93.67% 6.33% 0.00% Patrick S. Baird 93.88% 6.12% 0.00% Jack E. Zimmerman 93.86% 6.14% 0.00% William W. Short, Jr. 93.79% 6.21% 0.00% Daniel Calabria 93.88% 6.12% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 93.58% 6.42% 0.00% Janice B. Case 93.69% 6.31% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 77.29% 5.34% 17.37%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 77.30% 5.20% 17.50%
PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Federated Investment Management Company with respect to IDEX Federated Tax Exempt.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 76.42% 8.06% 15.52%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX GABELLI GLOBAL GROWTH PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.49% 4.51% 0.00% Charles C. Harris 95.49% 4.51% 0.00% John R. Kenney 95.49% 4.51% 0.00% Patrick S. Baird 95.55% 4.45% 0.00% Jack E. Zimmerman 95.54% 4.46% 0.00% William W. Short, Jr. 95.49% 4.51% 0.00% Daniel Calabria 95.48% 4.52% 0.00%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 220 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.34% 4.66% 0.00% Janice B. Case 95.46% 4.54% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.32% 2.17% 29.51%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.54% 2.23% 29.23%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.28% 3.11% 29.61%
PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Gabelli Asset Management Company with respect to IDEX Gabelli Global Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.50% 3.14% 29.36%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX GOLDMAN SACHS GROWTH PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.25% 3.75% 0.00% Charles C. Harris 96.25% 3.75% 0.00% John R. Kenney 96.25% 3.75% 0.00% Patrick S. Baird 96.23% 3.77% 0.00% Jack E. Zimmerman 96.25% 3.75% 0.00% William W. Short, Jr. 96.25% 3.75% 0.00% Daniel Calabria 96.25% 3.75% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.23% 3.77% 0.00% Janice B. Case 96.23% 3.77% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.02% 1.78% 30.20%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 221 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.69% 1.37% 29.94%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.36% .48% 30.16%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Goldman Sachs Asset Management with respect to IDEX Goldman Sachs Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.03% 2.90% 30.07%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX GREAT COMPANIES - AMERICA(SM) PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 97.43% 2.57% 0.00% Charles C. Harris 97.45% 2.55% 0.00% John R. Kenney 97.45% 2.55% 0.00% Patrick S. Baird 97.45% 2.55% 0.00% Jack E. Zimmerman 97.44% 2.56% 0.00% William W. Short, Jr. 97.39% 2.61% 0.00% Daniel Calabria 97.43% 2.57% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 97.39% 2.61% 0.00% Janice B. Case 97.39% 2.61% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.69% 2.48% 26.83%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 222 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Great Companies, L.L.C. with respect to IDEX Great Companies - America(SM).
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.76% 2.47% 26.77%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX GREAT COMPANIES - GLOBAL(2) PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 98.23% 1.77% 0.00% Charles C. Harris 98.23% 1.77% 0.00% John R. Kenney 98.23% 1.77% 0.00% Patrick S. Baird 98.23% 1.77% 0.00% Jack E. Zimmerman 98.23% 1.77% 0.00% William W. Short, Jr. 98.23% 1.77% 0.00% Daniel Calabria 98.23% 1.77% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 98.23% 1.77% 0.00% Janice B. Case 98.23% 1.77% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.60% 1.13% 27.27%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 73.60% 1.05% 25.35%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Great Companies, L.L.C. with respect to IDEX Great Companies - Global(2)
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.37% 3.68% 25.95%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 223 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX GREAT-COMPANIES - TECHNOLOGY(SM) PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 97.46% 2.54% 0.00% Charles C. Harris 97.46% 2.54% 0.00% John R. Kenney 97.46% 2.54% 0.00% Patrick S. Baird 97.46% 2.54% 0.00% Jack E. Zimmerman 97.44% 2.56% 0.00% William W. Short, Jr. 97.44% 2.56% 0.00% Daniel Calabria 97.46% 2.54% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 97.43% 2.57% 0.00% Janice B. Case 97.43% 2.57% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 72.28% 1.97% 25.75%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Great Companies, L.L.C. with respect to IDEX Great Companies - Technology(SM).
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 72.66% 2.02% 25.32%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX ISABELLE SMALL CAP VALUE PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.88% 4.12% 0.00% Charles C. Harris 95.88% 4.12% 0.00% John R. Kenney 95.84% 4.16% 0.00% Patrick S. Baird 95.84% 4.16% 0.00% Jack E. Zimmerman 95.84% 4.16% 0.00% William W. Short, Jr. 95.84% 4.16% 0.00% Daniel Calabria 95.84% 4.16% 0.00%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 224 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.77% 4.23% 0.00% Janice B. Case 95.77% 4.23% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.98% 0.97% 29.05%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.42% 3.85% 28.73%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.65% 3.57% 28.78%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Ironwood Capital Management, L.L.C. with respect to IDEX Isabelle Small Cap Value.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.09% 1.10% 28.81%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX JANUS BALANCED PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.76% 3.24% 0.00% Charles C. Harris 96.76% 3.24% 0.00% John R. Kenney 96.78% 3.22% 0.00% Patrick S. Baird 96.73% 3.27% 0.00% Jack E. Zimmerman 96.77% 3.23% 0.00% William W. Short, Jr. 96.74% 3.26% 0.00% Daniel Calabria 96.78% 3.22% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.68% 3.32% 0.00% Janice B. Case 96.68% 3.32% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.95% 2.26% 27.79%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 225 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.11% 2.41% 27.48%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.21% 2.25% 27.54%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Janus Capital Management, LLC with respect to IDEX Janus Balanced.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.70% 2.89% 27.41%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 93.01% 2.17% 4.82%
IDEX JANUS CAPITAL APPRECIATION PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.69% 4.31% 0.00% Charles C. Harris 95.71% 4.29% 0.00% John R. Kenney 95.69% 4.31% 0.00% Patrick S. Baird 95.71% 4.29% 0.00% Jack E. Zimmerman 95.70% 4.30% 0.00% William W. Short, Jr. 95.69% 4.31% 0.00% Daniel Calabria 95.70% 4.30% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.67% 4.33% 0.00% Janice B. Case 95.65% 4.35% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.66% 2.53% 28.81%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.26% 2.17% 28.57%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 226 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.17% 2.25% 28.58%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Janus Capital Management, LLC with respect to IDEX Janus Capital Appreciation.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.12% 3.39% 28.49%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 92.88% 2.20% 4.92%
IDEX JANUS FLEXIBLE INCOME PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.88% 3.12% 0.00% Charles C. Harris 96.91% 3.09% 0.00% John R. Kenney 96.92% 3.08% 0.00% Patrick S. Baird 96.73% 3.27% 0.00% Jack E. Zimmerman 96.87% 3.13% 0.00% William W. Short, Jr. 96.89% 3.11% 0.00% Daniel Calabria 96.91% 3.09% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.79% 3.21% 0.00% Janice B. Case 96.69% 3.31% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.44% 3.29% 27.27%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.03% 3.36% 26.61%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.26% 3.04% 26.70%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 227 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Janus Capital Management, LLC with respect to IDEX Janus Flexible Income.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.42% 4.03% 26.55%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 92.43% 3.26% 4.31%
IDEX JANUS GLOBAL PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.71% 3.29% 0.00% Charles C. Harris 96.75% 3.25% 0.00% John R. Kenney 96.68% 3.32% 0.00% Patrick S. Baird 96.73% 3.27% 0.00% Jack E. Zimmerman 96.74% 3.26% 0.00% William W. Short, Jr. 96.74% 3.26% 0.00% Daniel Calabria 96.77% 3.23% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.72% 3.28% 0.00% Janice B. Case 96.72% 3.28% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.88% 2.78% 27.34%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.36% 2.47% 27.17%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.36% 2.47% 27.17%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Janus Capital Management, LLC with respect to IDEX Janus Global.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.42% 3.36% 27.22%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 93.42% 2.38% 4.20%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 228 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX JANUS GROWTH PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.14% 3.86% 0.00% Charles C. Harris 96.18% 3.82% 0.00% John R. Kenney 96.09% 3.91% 0.00% Patrick S. Baird 96.15% 3.85% 0.00% Jack E. Zimmerman 96.15% 3.85% 0.00% William W. Short, Jr. 96.16% 3.84% 0.00% Daniel Calabria 96.17% 3.83% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.06% 3.94% 0.00% Janice B. Case 96.08% 3.92% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.46% 2.76% 25.78%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 72.11% 2.52% 25.37%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.91% 2.57% 25.52%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Janus Capital Management, LLC with respect to IDEX Janus Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.60% 3.99% 25.41%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 92.85% 2.46% 4.69%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 229 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX JANUS GROWTH & INCOME PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.80% 4.20% 0.00% Charles C. Harris 95.77% 4.23% 0.00% John R. Kenney 95.75% 4.25% 0.00% Patrick S. Baird 95.80% 4.20% 0.00% Jack E. Zimmerman 95.80% 4.20% 0.00% William W. Short, Jr. 95.80% 4.20% 0.00% Daniel Calabria 95.77% 4.23% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.42% 4.58% 0.00% Janice B. Case 95.79% 4.21% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.59% 2.30% 30.11%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Janus Capital Management, LLC with respect to IDEX Janus Growth & Income.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.35% 2.12% 29.53%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 93.62% 1.01% 5.37%
IDEX JENNISON EQUITY OPPORTUNITY PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.78% 3.22% 0.00% Charles C. Harris 96.78% 3.22% 0.00% John R. Kenney 96.78% 3.22% 0.00% Patrick S. Baird 96.78% 3.22% 0.00% Jack E. Zimmerman 96.78% 3.22% 0.00% William W. Short, Jr. 96.78% 3.22% 0.00% Daniel Calabria 96.78% 3.22% 0.00%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 230 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.74% 3.26% 0.00% Janice B. Case 96.74% 3.26% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.44% 1.51% 31.05%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.98% 1.32% 30.70%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Jennison Associates L.L.C. with respect to IDEX Jennison Equity Opportunity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.01% 2.26% 30.73%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX LKCM STRATEGIC TOTAL RETURN PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.96% 4.04% 0.00% Charles C. Harris 95.95% 4.05% 0.00% John R. Kenney 95.99% 4.01% 0.00% Patrick S. Baird 96.02% 3.98% 0.00% Jack E. Zimmerman 95.94% 4.06% 0.00% William W. Short, Jr. 95.96% 4.04% 0.00% Daniel Calabria 95.88% 4.12% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.01% 3.99% 0.00% Janice B. Case 95.89% 4.11% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 74.03% 3.06% 22.91%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 231 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 74.98% 2.36% 22.66%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 75.06% 2.29% 22.65%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Luther King Capital Management Corporation with respect to IDEX LKCM Strategic Total Return.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 73.70% 3.54% 22.76%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX PBHG MID CAP GROWTH (FORMERLY IDEX PILGRIM BAXTER MID CAP GROWTH) PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.01% 4.99% 0.00% Charles C. Harris 95.07% 4.93% 0.00% John R. Kenney 95.10% 4.90% 0.00% Patrick S. Baird 95.12% 4.88% 0.00% Jack E. Zimmerman 95.12% 4.88% 0.00% William W. Short, Jr. 95.10% 4.90% 0.00% Daniel Calabria 95.14% 4.86% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.04% 4.96% 0.00% Janice B. Case 95.14% 4.86% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.19% 2.72% 29.09%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.70% 2.47% 28.83%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 232 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.71% 2.36% 28.93%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Pilgrim Baxter & Associates, Ltd. with respect to IDEX PBHG Mid Cap Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.80% 3.39% 28.81%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX SALOMON ALL CAP PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.99% 4.01% 0.00% Charles C. Harris 96.01% 3.99% 0.00% John R. Kenney 96.03% 3.97% 0.00% Patrick S. Baird 96.05% 3.95% 0.00% Jack E. Zimmerman 95.98% 4.02% 0.00% William W. Short, Jr. 96.02% 3.98% 0.00% Daniel Calabria 96.00% 4.00% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.00% 4.00% 0.00% Janice B. Case 96.02% 3.98% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.32% 2.45% 28.23%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.55% 2.28% 28.17%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Salomon Brothers Asset Management, Inc. with respect to IDEX Salomon All Cap.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.81% 3.18% 28.01%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 233 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX T. ROWE SMALL CAP PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.00% 5.00% 0.00% Charles C. Harris 94.99% 5.01% 0.00% John R. Kenney 94.85% 5.15% 0.00% Patrick S. Baird 95.01% 4.99% 0.00% Jack E. Zimmerman 95.00% 5.00% 0.00% William W. Short, Jr. 95.01% 4.99% 0.00% Daniel Calabria 95.01% 4.99% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.05% 4.95% 0.00% Janice B. Case 95.04% 4.96% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 73.98% 2.25% 23.77%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 74.51% 2.29% 23.20%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 74.73% 2.21% 23.06%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and T. Rowe Price Associates, Inc. with respect to IDEX T. Rowe Price Small Cap.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 73.56% 3.35% 23.09%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 234 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX T. ROWE PRICE TAX-EFFICIENT GROWTH (FORMERLY IDEX T. ROWE PRICE DIVIDEND GROWTH) PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.56% 4.44% 0.00% Charles C. Harris 95.56% 4.44% 0.00% John R. Kenney 95.56% 4.44% 0.00% Patrick S. Baird 95.54% 4.46% 0.00% Jack E. Zimmerman 95.56% 4.44% 0.00% William W. Short, Jr. 95.54% 4.46% 0.00% Daniel Calabria 95.56% 4.44% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.56% 4.44% 0.00% Janice B. Case 95.54% 4.46% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.64% 2.88% 27.48%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.91% 2.80% 27.29%
PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration. Not applicable to this fund. PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and T. Rowe Price Associates, Inc. with respect to IDEX T. Rowe Price Tax-Efficient Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.56% 3.26% 27.18%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX TRANSAMERICA CONSERVATIVE HIGH-YIELD BOND (FORMERLY IDEX AEGON INCOME PLUS) PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.95% 3.05% 0.00% Charles C. Harris 96.96% 3.04% 0.00% John R. Kenney 96.88% 3.12% 0.00% Patrick S. Baird 96.86% 3.14% 0.00% Jack E. Zimmerman 96.92% 3.08% 0.00% William W. Short, Jr. 96.93% 3.07% 0.00% Daniel Calabria 96.99% 3.01% 0.00%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 235 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.62% 3.38% 0.00% Janice B. Case 96.78% 3.22% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.86% 2.80% 25.34%
PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to diversification. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.56% 3.09% 25.35%
PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.79% 3.14% 25.07%
PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 72.25% 2.59% 25.16%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and AEGON USA Investment Management, LLC with respect to IDEX Transamerica Conservative High-Yield Bond.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.61% 3.67% 24.72%
PROPOSAL 4: Approval of the adoption of a Sub-Adviser Approval Policy. Not applicable to this fund. IDEX TRANSAMERICA EQUITY PROPOSAL 1: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.59% 4.41% 0.00% Charles C. Harris 95.59% 4.41% 0.00% John R. Kenney 95.59% 4.41% 0.00% Patrick S. Baird 95.59% 4.41% 0.00% Jack E. Zimmerman 95.59% 4.41% 0.00% William W. Short, Jr. 95.59% 4.41% 0.00% Daniel Calabria 95.59% 4.41% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.59% 4.41% 0.00% Janice B. Case 95.59% 4.41% 0.00%
PROPOSAL 2A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.29% 1.42% 27.29%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 236 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 2B: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities. Not applicable to this fund. PROPOSAL 2C: Approval of the change in the fundamental investment restriction relating to investments in interests in oil, gas or other mineral exploration or development programs. Not applicable to this fund. PROPOSAL 2D: Approval of the change in the fundamental investment restriction relating to investments for the purpose of exercising control. Not applicable to this fund. PROPOSAL 2E: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.32% 1.48% 27.20%
PROPOSAL 3: Approval of a new Sub-Advisory Agreement between AEGON/Transamerica Fund Advisors and Transamerica Investment Management, LLC with respect to IDEX T. Rowe Price Tax-Efficient Growth.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 71.78% 0.96% 27.26%
PROPOSAL 4: Approval of the adoption of a Sub-Advisor Approval Policy. Not applicable to this fund. IDEX SALOMON INVESTORS VALUE (FORMERLY IDEX NWQ VALUE EQUITY) At a special meeting of shareholders held on FEBRUARY 8, 2002, the results of the Proposals were as follows: PROPOSAL 1: Approval of a new Sub-Advisory Agreement between IDEX Management, Inc. and Salomon Brothers Asset Management, Inc. with respect to IDEX Salomon Investors Value.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 93.38% 1.80% 4.82%
PROPOSAL 2: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 69.27% 2.17% 28.56%
PROPOSAL 3: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 99.24% 3.77% 0.00% Charles C. Harris 96.28% 3.72% 0.00% John R. Kenney 96.26% 3.74% 0.00% Patrick S. Baird 96.28% 3.72% 0.00% Jack E. Zimmerman 96.27% 3.73% 0.00% William W. Short, Jr. 96.28% 3.72% 0.00% Daniel Calabria 96.26% 3.74% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.96% 4.04% 0.00% Janice B. Case 96.04% 3.96% 0.00%
PROPOSAL 4A: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.92% 1.91% 29.17%
PROPOSAL 4B: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.69% 1.80% 29.51%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 237 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 4C: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.36% 2.20% 29.44%
IDEX GE U.S. EQUITY At a special meeting of shareholders held on FEBRUARY 8, 2002, the results of the Proposals were as follows: PROPOSAL 1: Approval of a new Investment Advisory Agreement between IDEX Management, Inc. and IDEX Mutual Funds with respect to IDEX GE U.S. Equity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.61% 1.08% 30.31%
PROPOSAL 2: Approval of a new Sub-Advisory Agreement between IDEX Management, Inc. and American Century Investment Management, Inc. with respect to IDEX GE U.S. Equity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.27% 1.31% 30.43%
PROPOSAL 3: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.18% 1.57% 36.25%
PROPOSAL 4: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 95.61% 4.39% 0.00% Charles C. Harris 95.54% 4.46% 0.00% John R. Kenney 95.56% 4.44% 0.00% Patrick S. Baird 95.63% 4.37% 0.00% Jack E. Zimmerman 95.63% 4.37% 0.00% William W. Short, Jr. 95.63% 4.37% 0.00% Daniel Calabria 95.63% 4.37% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 95.53% 4.47% 0.00% Janice B. Case 95.59% 4.41% 0.00%
PROPOSAL 5A: Approval of the change in the fundamental investment restriction relating to industry concentration.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.76% 1.66% 30.59%
PROPOSAL 5B: Approval of the change in the fundamental investment restriction relating to physical commodities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.20% 1.67% 30.12%
PROPOSAL 5C: Approval of the change in the fundamental investment restriction relating to lending.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.91% 1.75% 30.34%
PROPOSAL 5D: Approval of the change in the fundamental investment restriction relating to real estate securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.63% 1.93% 30.44%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 238 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 PROPOSAL 5E: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.71% 1.79% 30.50%
PROPOSAL 5F: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.42% 1.45% 30.14%
PROPOSAL 5G: Approval of the change in the fundamental investment restriction relating to the borrowing.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.98% 1.71% 30.31%
PROPOSAL 5H: Approval of the change in the fundamental investment restriction relating to underwriting.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.00% 1.89% 30.11%
PROPOSAL 5I: Approval of the change in the fundamental investment restriction relating to short sales.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.96% 1.70% 30.33%
PROPOSAL 5J: Approval of the change in the fundamental investment restriction relating to purchasing on margin.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.20% 2.06% 30.74%
PROPOSAL 5K: Approval of the change in the fundamental investment restriction relating to exercising control.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.01% 1.79% 30.20%
IDEX MUNDER NET50 At a special meeting of shareholders held on FEBRUARY 8, 2002, the results of the Proposals were as follows: PROPOSAL 1: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 77.41% 2.59% 20.00%
PROPOSAL 2: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 99.05% 0.95% 0.00% Charles C. Harris 99.21% 0.79% 0.00% John R. Kenney 99.21% 0.79% 0.00% Patrick S. Baird 99.05% 0.95% 0.00% Jack E. Zimmerman 99.21% 0.79% 0.00% William W. Short, Jr. 99.21% 0.79% 0.00% Daniel Calabria 99.21% 0.79% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 99.21% 0.79% 0.00% Janice B. Case 99.21% 0.79% 0.00%
PROPOSAL 3: Approval of the change in the fundamental investment restriction relating to senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 74.35% 2.36% 23.29%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 239 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX PBHG TECHNOLOGY & COMMUNICATIONS (FORMERLY IDEX PILGRIM BAXTER TECHNOLOGY) At a special meeting of shareholders held on FEBRUARY 8, 2002, the results of the Proposals were as follows: PROPOSAL 1: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 72.08% 2.89% 25.03%
PROPOSAL 2: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 93.64% 6.36% 0.00% Charles C. Harris 93.64% 6.36% 0.00% John R. Kenney 93.67% 6.33% 0.00% Patrick S. Baird 93.67% 6.33% 0.00% Jack E. Zimmerman 93.56% 6.44% 0.00% William W. Short, Jr. 93.68% 6.32% 0.00% Daniel Calabria 93.67% 6.33% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 93.20% 6.80% 0.00% Janice B. Case 93.20% 6.80% 0.00%
PROPOSAL 3: Approval of the change in the fundamental investment restriction relating to senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 70.49% 4.03% 25.48%
IDEX TRANSAMERICA GROWTH OPPORTUNITIES (FORMERLY IDEX TRANSAMERICA SMALL COMPANY) At a special meeting of shareholders held on FEBRUARY 8, 2002, the results of the Proposals were as follows: PROPOSAL 1: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 68.05% 2.50% 29.45%
PROPOSAL 2: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.18% 3.82% 0.00% Charles C. Harris 96.28% 3.72% 0.00% John R. Kenney 96.27% 3.73% 0.00% Patrick S. Baird 96.28% 3.72% 0.00% Jack E. Zimmerman 96.19% 3.81% 0.00% William W. Short, Jr. 96.18% 3.82% 0.00% Daniel Calabria 96.28% 3.72% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.19% 3.81% 0.00% Janice B. Case 96.22% 3.78% 0.00%
PROPOSAL 3: Approval of the change in the fundamental investment restriction relating to senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 67.25% 2.76% 29.99%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 240 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX INTERNATIONAL EQUITY At a special meeting of shareholders held on February 8, 2002, the results of the Proposals were as follows: PROPOSAL 1: Approval of a new Investment Advisory Agreement between IDEX Management, Inc. and IDEX Mutual Funds with respect to IDEX International Equity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 76.85% 1.58% 21.57%
PROPOSAL 2: Approval of a new Sub-Advisory Agreement between IDEX Management, Inc. and American Century Investment Management, Inc. with respect to IDEX International Equity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 75.73% 2.49% 21.78%
PROPOSAL 3: Approval of the adoption of a Sub-Adviser Approval Policy.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 76.75% 1.45% 21.80%
PROPOSAL 4: Approval of the current Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Peter R. Brown 96.92% 3.08% 0.00% Charles C. Harris 96.98% 3.02% 0.00% John R. Kenney 96.92% 3.08% 0.00% Patrick S. Baird 96.98% 3.02% 0.00% Jack E. Zimmerman 96.98% 3.02% 0.00% William W. Short, Jr. 96.87% 3.13% 0.00% Daniel Calabria 96.92% 3.08% 0.00%
And the approval of two new Trustees of the IDEX Board of Trustees as follows:
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- Russell A. Kimball, Jr. 96.74% 3.26% 0.00% Janice B. Case 96.85% 3.15% 0.00%
PROPOSAL 5A: Approval of the change in the fundamental investment restriction relating to diversification.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 76.59% 1.79% 21.62%
PROPOSAL 5B: Approval of the change in the fundamental investment restriction relating to physical commodities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 75.19% 3.24% 21.57%
PROPOSAL 5C: Approval of the change in the fundamental investment restriction relating to lending.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 74.72% 3.74% 21.54%
PROPOSAL 5D: Approval of the change in the fundamental investment restriction relating to real estate securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 75.33% 3.02% 21.65%
PROPOSAL 5E: Approval of the change in the fundamental investment restriction relating to the issuance of senior securities.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 76.76% 1.58% 21.66%
IDEX MUTUAL FUNDS RESULTS OF SHAREHOLDER PROXY (UNAUDITED) 241 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX AMERICAN CENTURY INTERNATIONAL At a special meeting of shareholders held on FEBRUARY 22, 2002, the results of Proposal 1 were as follows: PROPOSAL 1: Approval of an Agreement and Plan of Reorganization transferring all of the assets, subject to liabilities, of IDEX American Century International to IDEX International Equity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 90.60% 0.43% 8.97%
IDEX AMERICAN CENTURY INCOME & GROWTH At a special meeting of shareholders held on FEBRUARY 22, 2002, the results of Proposal 1 were as follows: PROPOSAL 1: Approval of an Agreement and Plan of Reorganization transferring all of the assets, subject to liabilities, of IDEX American Century Income & Growth to IDEX GE U.S. Equity.
FOR AGAINST ABSTENTIONS/BROKER NON-VOTES ------ ------- ---------------------------- 89.70% 1.97% 8.33%
242 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX MUTUAL FUNDS SUPPLEMENTAL TAX INFORMATION (UNAUDITED) OCTOBER 31, 2002 The following information is for federal income tax purposes for the year or period ended October 31, 2002.
Fund Long-Term Capital Gain Designation ---- ---------------------------------- IDEX PIMCO Total Return $0.02227 IDEX Protected Principal Stock 0.21107 IDEX Salomon Investors Value 0.07174 IDEX Transamerica Value Balanced 0.00016
243 IDEX MUTUAL FUNDS ANNUAL REPORT 2002 IDEX MUTUAL FUNDS MANAGEMENT OF THE FUND (UNAUDITED)
NAME, ADDRESS & DATE OF TERM OF OFFICE AND PRINCIPAL OCCUPATION(S) OR NUMBER OF FUNDS BIRTH ("DOB") POSITION(S) HELD LENGTH OF TIME SERVED EMPLOYMENT IN THE PAST 5 YEARS OVERSEEN BY TRUSTEE - ----------------------- ---------------- --------------------- ----------------------------------------- -------------------
Peter R. Brown Vice Chairman, 1986 -- present Chairman of the Board, Peter Brown 1180 6th Street East Trustee Construction Company; Vice Chairman & Treasure Island, Director, ATSF*, Fund B*, TIS* & TIF*, Rear Florida 33706 Admiral (Ret.) U.S. Navy Reserve, Civil Engineer (DOB 5/10/28) Corps. Daniel Calabria Trustee 1996 -- present Director, ATSF*, TIS* & Fund B* Trustee (1993- 7068 S. Shore Drive present) & President (1993-1995), Florida Tax So., Free Funds. South Pasadena, Florida 33707 (DOB 3/5/36) Janice B. Case Trustee 2002 -- present Director, ATSF*, TIS* & Fund B*; Senior Vice 205 Palm Island NW President (1996-2000), Vice President (1990- Clearwater, 1996), Director of Customer Service & Marketing Florida 33767 (1987-1990), Florida Power Corp. (DOB 9/27/52) Charles C. Harris Trustee 1994 -- present Director, ATSF*, TIS* & Fund B* 35 Winston Drive Clearwater, Florida 33756 (DOB 7/15/30) Leo J. Hill Trustee 2001 -- present Director, ATSF*, TIS* & Fund B*; Owner, Prestige 2101 N. Main Street Lincoln-Mercury (2001-present); Market Gainesville, President, National Bank; President & CEO, Florida 32609 Barnett Bank of the Treasure Coast, FL (1994-1998) Russell A. Kimball, Trustee 1986 -- present Director, ATSF*; General Manager, Sheraton Sand Jr. Key Resort 1160 Gulf Boulevard Clearwater Beach, Florida 34630 (DOB 8/17/44) John R. Kenney** Chairman, 1996 -- present Chairman, Director and Co-CEO, Great Companies, P. O. Box 5068 Trustee L.L.C.; Director & Chairman, ATSF*, TIS* & Fund Clearwater, B*; Chairman & Director, Western Reserve Life Florida 33758 Assurance Co. of Ohio (1996-June, 2002) (DOB 2/8/38) Larry N. Norman** Trustee 2002 -- present Executive Vice President & COO, AEGON USA, Inc.; 4333 Edgewood Road NE Director, ATSF* & TIS* Cedar Rapids, Iowa 52499 (DOB 1/19/54) William W. Short, Jr. Trustee 1986 -- present Director, ATSF*, TIS* & Fund B*; President & 12420 73rd Court majority shareholder, Short's Inc.; Chairman, Largo, Southern Apparel Corporation, S.A.S.C. Apparel Florida 33773 Corporation & S.A.C. Distributors (DOB 2/25/36) Jack E. Zimmerman Trustee 1986 -- present Currently retired; formerly Director, Regional 6778 Rosezita Lane Marketing of Marietta Corporation & Director of Dayton, OH 45459 Strategic Planning, Martin Marietta Baltimore (DOB 2/3/28) Aerospace. Mr. Zimmerman is also the brother- in-law of John R. Kenny, IDEX Chairman. Peter R. Brown 98 1180 6th Street East Treasure Island, Florida 33706 (DOB 5/10/28) Daniel Calabria 97 7068 S. Shore Drive So., South Pasadena, Florida 33707 (DOB 3/5/36) Janice B. Case 97 205 Palm Island NW Clearwater, Florida 33767 (DOB 9/27/52) Charles C. Harris 97 35 Winston Drive Clearwater, Florida 33756 (DOB 7/15/30) Leo J. Hill 97 2101 N. Main Street Gainesville, Florida 32609 Russell A. Kimball, 97 Jr. 1160 Gulf Boulevard Clearwater Beach, Florida 34630 (DOB 8/17/44) John R. Kenney** 97 P. O. Box 5068 Clearwater, Florida 33758 (DOB 2/8/38) Larry N. Norman** 98 4333 Edgewood Road NE Cedar Rapids, Iowa 52499 (DOB 1/19/54) William W. Short, Jr. 97 12420 73rd Court Largo, Florida 33773 (DOB 2/25/36) Jack E. Zimmerman 38 6778 Rosezita Lane Dayton, OH 45459 (DOB 2/3/28)
- --------------- * ATSF-AEGON/Transamerica Series Fund, Inc; Fund B-Transamerica Occidental Life Insurance Company Separate Account Fund B; TIS-Transamerica Income Shares, Inc.; TIF-Transamerica Index Funds, Inc. ** May be deemed as "interested person" of the Fund as defined in the 1940 Act due to employment with an affiliate of AEGON/Transamerica Fund Advisers, Inc. THIS PAGE INTENTIONALLY LEFT BLANK IDEX MUTUAL FUNDS CORPORATE ADDRESS SEND YOUR GOLDMAN SACHS ASSET MANAGEMENT - --------------------------------------- CORRESPONDENCE TO: 32 Old Slip 570 Carillon Parkway --------------------------------------- New York, New York 10005-3500 St. Petersburg, Florida, 33716-1202 AEGON/TRANSAMERICA INVESTOR SERVICES, INC. GREAT COMPANIES, L.L.C. CUSTODIAN P.O. Box 9015 635 Court Street, Suite 100 - --------------------------------------- Clearwater, Florida 33758-9015 Clearwater, Florida 33756-5512 INVESTORS BANK AND TRUST COMPANY 200 Clarendon Street, 16th Floor CUSTOMER SERVICE IRONWOOD CAPITAL MANAGEMENT LLC Boston, Massachusetts 02116 --------------------------------------- 21 Custom House Street (888) 233-IDEX (4339) toll free call Boston, Massachusetts 02110 INDEPENDENT CERTIFIED Hours:8 a.m. to 8 p.m. Monday - Friday, PUBLIC ACCOUNTANTS Eastern Time JANUS CAPITAL MANAGEMENT LLC - --------------------------------------- 100 Fillmore Street, Suite 300 PRICEWATERHOUSECOOPERS LLP IDEX WEBSITE Denver, Colorado 80206-4928 101 E. Kennedy Blvd., Suite 1500 --------------------------------------- Tampa, Florida 33602-9919 www.idexfunds.com JENNISON ASSOCIATES, LLC 466 Lexington Avenue INVESTMENT ADVISER DISTRIBUTOR New York, New York 10017 - --------------------------------------- --------------------------------------- AEGON/TRANSAMERICA FUND ADVISERS, INC. AFSG SECURITIES CORPORATION LUTHER KING CAPITAL MANAGEMENT 570 Carillon Parkway 4333 Edgewood Road NE CORPORATION St. Petersburg, Florida 33716-1202 Cedar Rapids, IA 52499 301 Commerce Street, Suite 1600 Fort Worth, Texas 76102-4190 OFFICERS SUB-ADVISERS - --------------------------------------- --------------------------------------- MUNDER CAPITAL MANAGEMENT BRIAN C. SCOTT AEGON USA INVESTMENT 480 Pierce Street, Suite 300 President and Chief Executive Officer MANAGEMENT, LLC Birmingham, Michigan 48009 4333 Edgewood Road, N.E. THOMAS R. MORIARTY Cedar Rapids, Iowa 52499-0002 PACIFIC INVESTMENT MANAGEMENT Executive Vice President, Treasurer and COMPANY Principal Financial Officer AMERICAN CENTURY INVESTMENT 840 Newport Center Drive MANAGEMENT, INC. Newport Beach, California 92660 JOHN K. CARTER American Century Tower Vice President, 4500 Main Street PILGRIM BAXTER & ASSOCIATES, LTD. Secretary and General Counsel Kansas City, Missouri 64111 1400 Liberty Ridge Drive Wayne, Pennsylvania 19087-5593 WILLIAM T. DAVIS FEDERATED INVESTMENT MANAGEMENT Vice President, COMPANY SALOMON BROTHERS ASSET Investment Manager Oversight and Relations Federated Investment Tower MANAGEMENT INC Pittsburgh, Pennsylvania 15222-3779 388 Greenwich Street CHRISTOPHER G. ROETZER New York, New York 10013 Vice President, Assistant Treasurer and FRED ALGER MANAGEMENT, INC. Principal Accounting Officer 30 Montgomery Street T. ROWE PRICE ASSOCIATES, INC. Jersey City, New Jersey 07302 100 East Pratt Street GAYLE A. MORDEN Baltimore, Maryland 21202-1090 Assistant Vice President and GABELLI ASSET MANAGEMENT COMPANY Assistant Secretary One Corporate Center TRANSAMERICA INVESTMENT Rye, New York 10580-1434 MANAGEMENT, LLC TERESA PEPLOWSKI 1150 South Olive Street, Suite 2700 Assistant Secretary GATEWAY INVESTMENT ADVISERS, L.P. Los Angeles, California 90015 Rookwood Tower KATHI WILLIAMS 3805 Edwards Road, Suite 600 Assistant Secretary Cincinnati, OH 45209
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