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www.rydexfunds.com

	THE RYDEX  SERIES FUNDS
	Benchmark Funds Annual Report March 31, 2003 Nova Fund Ursa Fund OTC Fund Arktos Fund Medius Fund Mekros Fund U.S. Government Bond Fund Juno Fund Large–Cap Europe Fund Large–Cap Japan Fund U.S. Government Money Market Fund Nova Master Portfolio Ursa Master Portfolio Arktos Master Portfolio Juno Master Portfolio
RBFA-2-3/03

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not intended for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, Inc.

ANNUAL REPORT1

TABLE OF CONTENTS
LETTER FROM THE CHAIRMAN	2
PERFORMANCE REPORTS	3
BENCHMARK FUNDS
SCHEDULES OF INVESTMENTS	14
STATEMENTS OF ASSETS AND LIABILITIES	42
STATEMENTS OF OPERATIONS	46
STATEMENTS OF CHANGES IN NET ASSETS	50
FINANCIAL HIGHLIGHTS	56
BENCHMARK PORTFOLIOS
SCHEDULES OF INVESTMENTS	93
STATEMENTS OF ASSETS AND LIABILITIES	104
STATEMENTS OF OPERATIONS	106
STATEMENTS OF CHANGES IN NET ASSETS	108
FINANCIAL HIGHLIGHTS	110
NOTES TO FINANCIAL STATEMENTS	114
INDEPENDENT AUDITORS’ REPORT	135
UNAUDITED TAX INFORMATION	136
UNAUDITED INFORMATION ON BOARD OF TRUSTEES	138

2

DEAR SHAREHOLDER:

The year ended March 31, 2003 was characterized by progressively worsening tension between the U.S. and Iraq and a growing obsession with the possibility of war. Indeed, U.S. troops invaded Iraq during the third week of March 2003, the final days of the period covered by this report.

The market had good reason to be nervous about this war, whose length, economic cost and political consequences were impossible to predict.The financial markets seemed particularly jittery when concerns were expressed that the fighting might expand into neighboring countries, or that Saddam Hussein would set fire to his own oilfields. In the face of this paralyzing uncertainty, the stock markets added a third year to their losing streak.The bellwether S&P 500^®Index was down 24.76% for the period, with the technology-heavy Nasdaq 100 Index^®down 29.89%. A rally of several weeks in October and early November provided the only real respite from the relentless downward trend.

The Rydex inverse equity funds prospered in the face of such a trend. Ursa Fund, which takes an inverse position to the S&P 500, rewarded investors with a total return of 25.65% in the Investor Class, while Arktos Fund Investor Class, which takes an inverse position to the Nasdaq 100, returned 20.36%.

Returns were unanimously negative among the Rydex sector funds, with technology-related sectors faring the worst. Our gold-heavy Precious Metals Fund Investor Class held its loss to a mere 4.01% for the year, and there were many periods during the year when rising gold prices created opportunity for investors.

Fixed-income investments were the place to be this year as interest rates continued their long decline. Rydex U.S. Government Bond Fund Investor Class, which takes a leveraged position in the long Treasury bond, returned 24.93%.With the possibility of a reversal in interest rate trends on the horizon, many investors are showing an interest in Rydex Juno Fund, which is designed to prosper during periods of rising rates.

There are signs that the coming year will be much better. Saddam Hussein’s government was toppled in short order, and while the complex task of rebuilding Iraq lies ahead, most pundits believe that the worst risks are behind us. Although economic recovery has failed to materialize, consumer confidence, employment and GDP numbers have by no means collapsed during this difficult period. Most importantly, the stock market, often seen as a leading indicator of economic growth, rallied robustly in April 2003.

Sincerely,

Albert P. (“Skip”) Viragh, Jr.
Chairman of the Board

ANNUAL REPORT 3

NOVA FUND

OBJECTIVE:To provide investment returns that correspond to 150% of the daily performance of the S&P 500 Index.

Inception: July 12, 1993

For the third year in a row, the S&P 500 Index declined sharply as accounting and research scandals, a stumbling economy, increasing unemployment and global uncertainty fueled investor uneasiness.The S&P 500 fell throughout the year with two significant declines in July and October, establishing a new low on October 9.The index managed to rally in mid-March as uncertainty surrounding the war in Iraq dissipated.While the S&P 500 returned –24.76% for the period, Rydex Nova Fund Investor Class returned –39.20%.

Cumulative Fund Performance: July 12, 1993 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	INVESTOR CLASS			ADVISOR CLASS		C CLASS
	(7/12/93)			(10/15/98)		(3/14/01)
	ONE	FIVE	SINCE	ONE	SINCE	ONE	SINCE
	YEAR	YEAR	INCEPTION	YEAR	INCEPTION	YEAR	INCEPTION
NOVA FUND	–39.20%	-11.89%	6.01%	–39.59%	–11.70%	–39.87%	–24.55%
S&P 500 INDEX	–24.76%	–3.77%	8.76%	–24.76%	–3.30%	–24.76%	–13.10%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The S&P 500 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on Investor Class shares only; performance for Advisor Class shares and C Class shares will vary due to differences in fee structure.

4

URSA FUND

OBJECTIVE:To provide investment returns that correspond to the inverse (opposite) of the daily performance of the S&P 500 Index.

Inception: January 7, 1994

Investors hedging against the S&P 500 during the past year were rewarded handsomely as the broad market index declined sharply for a third year in a row. Corporate scandals, a weak economy and the uncertain geopolitical environment weighed down U.S. equity markets.While the S&P 500 Index returned –24.76% for the 12 month period ending March 31, 2003, Rydex Ursa Fund flourished, returning 25.65% (Investor Class).

Cumulative Fund Performance: January 7, 1994 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	INVESTOR CLASS			ADVISOR CLASS		C CLASS
	(1/7/94)			(8/5/98)		(3/15/01)
	ONE	FIVE	SINCE	ONE	SINCE	ONE	SINCE
	YEAR	YEAR	INCEPTION	YEAR	INCEPTION	YEAR	INCEPTION
NOVA FUND	25.65%	6.21%	–3.86%	24.95%	5.31%	24.35%	11.79%
S&P 500 INDEX	–24.76%	–3.77%	8.55%	–24.76%	–3.76%	–24.76%	–13.37%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The S&P 500 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on Investor Class shares only; performance for Advisor Class shares and C Class shares will vary due to differences in fee structure.

ANNUAL REPORT 5

OTC FUND

OBJECTIVE:To provide investment returns that correspond to the performance of the Nasdaq 100 Index.

Inception: February 14, 1994

An impressive rally in the fourth quarter of 2002 was not enough to reverse earlier losses, leaving the Nasdaq 100 Index in the red for the third year in a row.While consumer spending mitigated the damage in many segments of the broader market, the technology-laden Rydex OTC Fund suffered as a result of sagging capital expenditures. For the year, the Nasdaq 100 finished with a loss of 29.89%. At the same time, Rydex OTC Fund Investor Class lost 30.91%.

Cumulative Fund Performance: February 14, 1994 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	INVESTOR CLASS			ADVISOR CLASS		C CLASS
	(2/14/94)			(9/22/98)		(3/26/01)
	ONE	FIVE	SINCE	ONE	SINCE	ONE	SINCE
	YEAR	YEAR	INCEPTION	YEAR	INCEPTION	YEAR	INCEPTION
OTC FUND	–30.91%	–4.87%	9.89%	–31.29%	–7.90%	–31.61%	–24.09%
NASDAQ 100 INDEX	–29.89%	–3.55%	10.64%	–29.89%	–5.83%	–29.89%	–21.93%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The Nasdaq 100 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on Investor Class shares only; performance for Advisor Class shares and C Class shares will vary due to differences in fee structure.

6

ARKTOS FUND

OBJECTIVE:To provide investment returns that correspond to the inverse (opposite) of the Nasdaq 100 Index.

Inception: September 3, 1998

With the Nasdaq 100 Index down for a third year in a row, Rydex Arktos Fund was able to profit handsomely.Throughout the year, earnings warnings and bleak forecasts of future corporate spending propelled the tech-heavy benchmark down to levels not seen in years. A listless economy, corporate scandals and the threat of war all contributed to the market’s decline, which translated into a return of 20.39% for Rydex Arktos Fund Investor Class.

Cumulative Fund Performance: September 3, 1998 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	INVESTOR CLASS		C CLASS
	(9/3/98)		(3/7/01)
	ONE	SINCE	ONE	SINCE
	YEAR	INCEPTION	YEAR	INCEPTION
ARKTOS FUND	–20.39%	–13.11%	19.02%	14.23%
NASDAQ 100 INDEX	–29.89%	–3.68%	–29.89%	–27.80%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The Nasdaq 100 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on Investor Class shares only; performance for C Class shares will vary due to differences in fee structure.

ANNUAL REPORT 7

MEDIUS FUND

OBJECTIVE:To provide investment returns that correspond to the performance of the S&P MidCap 400 Index.

Inception: August 16, 2001

The S&P MidCap 400 Index, the benchmark for mid-ranged capitalization of the U.S. stock market, lost 23.45% for the period. In comparison, this capitalization segment outperformed both large- and small-cap stocks (as represented by the S&P 500 and Russell 2000 indices respectively).The S&P MidCap 400 Index also bettered the results of the Dow Jones Industrial Average. Over the course of this period mid-cap stocks have held their ground versus large-cap and small-cap indices. Rydex Medius Fund H Class returned –38.11% for the same period.

Cumulative Fund Performance: August 16, 2001 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	H CLASS		C CLASS
	(8/16/01)		(8/20/01)
	ONE	SINCE	ONE	SINCE
	YEAR	INCEPTION	YEAR	INCEPTION
MEDIUS FUND	–38.11%	–23.64%	–38.65%	–23.44%
S&P MIDCAP 400 INDEX	–23.45%	–10.92%	–23.45%	–10.33%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The S&P MidCap 400 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on H Class shares only; performance for C Class shares will vary due to differences in fee structure.

8

MEKROS FUND

OBJECTIVE:To provide investment returns that correspond to the performance of the Russell 2000 Index.

Inception: November 1, 2000

Despite a strong showing in the fourth quarter of 2002, the Russell 2000 Index—a popular benchmark for small-cap stocks—declined sharply for a third straight year. Adding insult to injury, small-cap stocks also underperformed large-cap stocks for the year. A weak economic outlook,Wall Street scandals and the threat of war in the Middle East fueled investor uneasiness, causing most rallies to be met with selling pressure. For the year ended March 31, 2003, the Russell 2000 Index returned –26.96%, and Rydex Mekros Fund H Class returned –42.63%.

Cumulative Fund Performance: November 1, 2000 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	H CLASS		C CLASS
	(11/1/00)		(1/23/01)
	ONE	SINCE	ONE	SINCE
	YEAR	INCEPTION	YEAR	INCEPTION
MEKROS FUND	–42.63%	–23.83%	–43.12%	–25.46%
RUSSELL 2000 INDEX	–26.96%	–10.66%	–26.96%	–12.38%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The Russell 2000 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on H Class shares only; performance for C Class shares will vary due to differences in fee structure.

ANNUAL REPORT 9

U.S. GOVERNMENT BOND FUND

OBJECTIVE:To provide investment returns that correspond to 120% of the daily performance of the current Long U.S.Treasury Bond.

Inception: January 3, 1994

U.S. Treasuries saw a very strong year in 2002, as investors continued their flight to the quality and safety of government debt amid a sluggish economy and the third year of declines in equity benchmark indices. Geopolitical uncertainty, a weak economy and corporate scandals lent support to U.S. government bond prices. At the same time, increased volatility was introduced, as the Treasury Department issued more than $500 billion of debt to fund a growing budget deficit. On November 6, the Fed Funds rate was cut from 1.75% to 1.25%. Expectations for additional central bank easing kept interest rates low as well. For the period, Rydex U.S. Government Bond Fund Investor Class returned 24.93%.

Cumulative Fund Performance: January 3, 1994 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	INVESTOR CLASS			C CLASS
	(1/3/94)			(5/2/01)
	ONE	FIVE	SINCE	ONE	SINCE
	YEAR	YEAR	INCEPTION	YEAR	INCEPTION
U.S. GOVERNMENT BOND FUND	24.93%	6.30%	5.64%	23.93%	11.77%
PRICE MOVEMENT OF LONG  TREASURY BOND	15.48%	1.70%	0.82%	15.48%	7.00%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The price movement of the Long Treasury Bond represents a cumulative percentage change in its closing price. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on Investor Class shares only; performance for C Class shares will vary due to differences in fee structure.

10

JUNO FUND

OBJECTIVE:To provide investment returns that correspond to the inverse (opposite) of the daily performance of the current Long U.S.Treasury Bond.

Inception: March 3, 1995

Investors, seeking the relative safety of bonds, continued to drive prices up and interest rates down.The Treasury Department issued more than $500 billion of debt throughout the year to fund a growing budget deficit and on November 6, the Fed Funds rate was cut from 1.75% to 1.25%. For the period, Rydex Juno Fund Investor Class fell 19.53%.

Cumulative Fund Performance: March 3, 1995 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
	INVESTOR CLASS			C CLASS
	(3/3/95)			(3/28/01)
	ONE	FIVE	SINCE	ONE	SINCE
	YEAR	YEAR	INCEPTION	YEAR	INCEPTION
JUNO FUND	–19.53%	–3.79%	–3.94%	–20.13%	–9.71%
PRICE MOVEMENT OF LONG TREASURY BOND	15.48%	1.70%	2.97%	15.48%	4.80%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The price movement of the Long Treasury Bond represents a cumulative percentage change in its closing price. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graph is based on Investor Class shares only; performance for C Class shares will vary due to differences in fee structure.

ANNUAL REPORT 11

LARGE - CAP EUROPE FUND

OBJECTIVE:To provide investment returns that correlate to the performance of the Dow Jones Stoxx 50 Index.

Inception: May 8, 2000

European equity markets fell significantly during the past year as corporate scandals that plagued the U.S. emerged across the Atlantic.Though equity markets declined, the Euro made a steady ascent against the U.S. dollar. According to a recent report from PriceWaterhouseCoopers, European economic growth is expected to recover only gradually from 0.7% in 2002 to around 1.5% in 2003 as the world economy revives. Inflation is likely to fall below 2% by the end of 2003, allowing the ECB to keep rates at current low levels during 2003; a further cut is possible if growth is disappointing. Other issues facing member countries of the European Union are labor mobility and pension reform, both key issues for future growth.

Cumulative Fund Performance: May 8, 2000 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
		H CLASS		C CLASS
		(5/8/00)		(5/10/01)
	ONE	SINCE	ONE	SINCE
	YEAR	INCEPTION	YEAR	INCEPTION
LARGE-CAP EUROPE FUND	–35.42%	–27.43%	–36.01%	–29.95%
DOW JONES STOXX 50 INDEX	–34.78%	–20.91%	–34.78%	–23.20%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The Dow Jones Stoxx 50 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.The graph is based on H Class shares only; performance for C Class shares will vary due to differences in fee structure.

12

LARGE - CAP JAPAN FUND

OBJECTIVE:To provide investment returns that correlate to the performance of the Topix 100 Index.

Inception: May 8, 2000

Japanese equity markets, reflecting a weak economy, deflation and global uncertainty, declined throughout the year in lock step with U.S. markets. Consumer prices have been falling for the past three years, and in an attempt to stem this deflation, the Bank of Japan announced measures to loosen monetary policy.The Bank of Japan will have an uphill battle as many debt-laden banks are preventing capital from being effectively allocated in the economy. On a positive note, the Japanese car industry appears robust.Toyota posted solid profits of the first half of 2002 and Nissan and Honda Motors also posted significant sales increases in the first half in the U.S., albeit assisted by the weaker yen against the dollar. Investors will remain cautious as long as so much uncertainty remains in the Japanese economy and apparent indecision exists among the key decision makers in the government.

Cumulative Fund Performance: May 8, 2000 – March 31, 2003

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/03
		H CLASS		C CLASS
		(5/8/00)		(3/1/02)
	ONE	SINCE	ONE	SINCE
	YEAR	INCEPTION	YEAR	INCEPTION
LARGE-CAP JAPAN FUND	–30.14%	–37.70%	–30.40%	–24.37%
TOPIX 100 INDEX	–40.83%	–29.89%	–40.83%	–17.04%

The returns presented above do not reflect the effect of taxes. Past performance is no guarantee of future results.The Topix 100 Index is an unmanaged stock index and, unlike the fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.The graph is based on H Class shares only; performance for C Class shares will vary due to differences in fee structure.

ANNUAL REPORT 13

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE:To provide security of principal, high current income and liquidity by investing in securities issued by the U.S. Government and U.S. Government agencies.

Inception: December 1, 1993

During the one-year period ended March 31, 2003, short-term interest rates held steady until November 6, 2002, when the Federal Reserve cut the federal funds rate from 1.75% to 1.25%. As a result, yields on money market funds dropped to levels not seen since the early 1960s.Throughout this period of market volatility and economic and geopolitical uncertainty, the fund continued to provide investors safety of principle, liquidity of assets and a stable net asset value. At year-end, the fund reported the following returns:

INVESTOR CLASS	ADVISOR CLASS	C CLASS	INSTITUTIONAL CLASS
0.71%	0.27%	0.08%	0.63%

14

OTC FUND

SCHEDULEOF INVESTMENTS March 31, 2003

		MARKET
		VALUE
	SHARES	(NOTE 1)
COMMON STOCKS 92.5%
INFORMATION TECHNOLOGY 52.1%
Software 20.4%
Microsoft Corp.†	2,931,770	$	70,978,152
Oracle Corp.*†	1,853,680		20,110,574
Electronic Arts, Inc.*†	154,000		9,030,560
Intuit, Inc.*†	203,199		7,559,003
Veritas Software
Corp.*†	392,000		6,891,360
Symantec Corp.*†	137,300		5,379,414
Adobe Systems, Inc.†	173,400		5,345,922
Peoplesoft, Inc.*†	305,400		4,672,620
BEA Systems, Inc.*†	337,000		3,434,030
Citrix Systems, Inc.*†	226,500		2,980,740
Check Point Software
Technologies,
Ltd.*†	140,300		2,030,141
Mercury Interactive
Corp.*†	63,100		1,872,808
Siebel Systems, Inc.*†	230,000		1,842,300
Compuware Corp.*	310,200		1,051,578
Total Software			143,179,202
Semiconductor Equipment
& Products 14.4%
Intel Corp	1,956,780		31,856,379
Maxim Integrated
Products†	384,800		13,898,976
Linear Technology
Corp.†	332,500		10,264,275
Applied Materials,
Inc.*†	701,790		8,828,518
Xilinx, Inc.*	359,800		8,422,918
Kla - Tencor Corp.*†	184,700		6,638,487
Altera Corp.*	486,991		6,593,858
Novellus Systems,
Inc.*†	137,600		3,752,352
QLogic Corp.*†	90,700		3,368,598
Microchip Technology,
Inc.†	151,500		3,014,850
Nvidia Corp.*†	160,700		2,064,995
Broadcom Corp.*†	129,200		1,595,620

		MARKET
		VALUE
	SHARES	(NOTE 1)
RF Micro Devices,
Inc.*†	104,400	$	629,428
Total Semiconductor
Equipment & Products		100,929,254
Communications Equipment 9.6%
Qualcomm, Inc.†	809,890		29,204,634
Cisco Systems, Inc.*†	2,160,280		28,040,434
JDS Uniphase Corp.*	704,790		2,008,652
Brocade
Communications
Systems, Inc.*†	354,900		1,731,912
CIENA Corp.*	355,500		1,553,535
Tellabs, Inc.*†	255,900		1,481,661
Juniper Networks,
Inc.*†	168,500		1,376,645
ADC
Telecommunications,
Inc.*	601,790		1,239,687
Telefonaktiebolaget LM
Ericsson SP ADR*	147,100	935,556
Total Communications
Equipment		67,572,716
Computers & Peripherals 4.8%
Dell Computer
Corp.*†	800,091		21,850,485
Apple Computer,
Inc.*	415,700		5,877,998
Network Appliance,
Inc.*†	319,100		3,570,729
Sun Microsystems,
Inc.*	870,190	2,836,820
Total Computers
& Peripherals		34,136,032
Internet Software & Services 1.8%
Yahoo, Inc.*†	443,000	10,640,860
VeriSign, Inc.*†	229,000	2,001,460
Total Internet Software
& Services			12,642,320

*	Non-Income Producing Securities
†	All or a portion of this security is on loan at March 31, 2003—See Note 10.
ADR—American Depository Receipt
See Notes to Financial Statements.

ANNUAL REPORT 15

OTC FUND

SCHEDULEOF INVESTMENTS (continued) March 31, 2003

		MARKET
		VALUE
	SHARES	(NOTE 1)
Electronic Equipment
& Instruments 1.1%
Flextronics International,
Ltd.*†	583,600	$	5,088,992
Sanmina-SCI Corp.*	602,490		2,434,059
Total Electronic Equipment
& Instruments			7,523,051
Total Information
Technology			365,982,575
CONSUMER DISCRETIONARY 15.7%
Media 5.1%
Comcast Corp.
—Class A*†	778,189		22,248,423
Echostar
Communications
Corp.*†	201,900		5,830,872
PanAmSat Corp.*†	186,000		2,626,320
Pixar, Inc.*†	38,200		2,065,856
Lamar Advertising
Co.*	69,600		2,042,760
TMP Worldwide,
Inc.*†	106,000		1,137,380
Total Media			35,951,611
Internet & Catalog Retail 4.4%
eBay, Inc.*†	178,000		15,181,620
USA Interactive*†	405,800		10,871,382
Amazon.Com, Inc.*†	176,200		4,586,486
Total Internet
& Catalog Retail			30,639,488
Specialty Retail 3.2%
Bed Bath & Beyond,
Inc.*†	321,199		11,094,214
Staples, Inc.*†	261,000		4,784,130
CDW Computer
Centers, Inc.*†	71,999		2,937,559
Ross Stores, Inc	64,100		2,317,215
Petsmart, Inc.*†	106,897		1,346,902
Total Specialty Retail			22,480,020

			MARKET
			VALUE
	SHARES		(NOTE 1)
Hotels Restaurants & Leisure 1.6%
Starbucks Corp.*†	444,000	$	11,437,440
Total Hotels Restaurants
& Leisure			11,437,440
Multiline Retail 1.2%
Costco Wholesale
Corp.*†	207,099		6,219,183
Dollar Tree Stores,
Inc.*	95,600		1,902,440
Total Multiline Retail			8,121,623
Auto Components 0.2%
Gentex Corp.*†	62,597		1,592,468
Total Auto Components			1,592,468
Total Consumer
Discretionary		$	110,222,650
HEALTH CARE 14.7%
Biotechnology 10.6%
Amgen, Inc.*†	488,992		28,141,490
Chiron Corp.*†	215,600		8,085,000
Genzyme Corp.—
General Division*†	221,800		8,084,610
Medimmune, Inc.*†	220,500		7,239,015
Gilead Sciences, Inc.*†	156,200		6,558,838
Idec Pharmaceuticals
Corp.*†	137,900		4,718,938
Biogen, Inc.*†	152,600		4,571,896
Millennium
Pharmaceuticals,
Inc.*†	269,900		2,121,414
Cephalon, Inc.*†	39,300		1,569,642
Invitrogen Corp.*	37,500		1,148,625
Human Genome
Sciences, Inc.*	117,500		1,004,625
ICOS Corp.*†	52,500		982,275
Total Biotechnology			74,226,368
Health Care Providers & Services 1.7%
Express Scripts, Inc.*†	57,200		3,184,896
Lincare Holdings,
Inc.*†	85,100		2,611,719
Patterson Dental Co.*†	51,900		2,383,767
First Health Group
Corp.*†	90,800		2,309,952

*	Non-Income Producing Securities
†	All or a portion of this security is on loan at March 31, 2003—See Note 10.
See Notes to Financial Statements.

16

OTC FUND

SCHEDULEOF INVESTMENTS (continued) March 31, 2003

		MARKET
		VALUE
	SHARES	(NOTE 1)
Henry Schein, Inc.*	34,200	$	1,542,420
Total Health Care Providers
& Services		12,032,754
Health Care Equipment & Supplies 1.5%
Biomet, Inc.†	286,500		8,781,225
Dentsply International,
Inc.†	60,799	2,115,197
Total Health Care Equipment
& Supplies		10,896,422
Pharmaceuticals 0.9%
Teva Pharmaceutical
Industries†	155,300	6,468,245
Total Pharmaceuticals		6,468,245
Total Health Care			103,623,789
INDUSTRIALS 6.2%
Commercial Services & Supplies 3.8%
Paychex, Inc.†	296,800		8,153,096
Apollo Group, Inc.*†	138,900		6,931,110
Fiserv, Inc.*†	199,500		6,280,260
Cintas Corp.†	169,600		5,579,840
Total Commercial Services
& Supplies			26,944,306
Machinery 0.8%
Paccar, Inc.†	106,200		5,338,674
Total Machinery			5,338,674
Air Freight & Couriers 0.7%
Expeditors International
Washington, Inc.†.	76,495		2,749,995
C.H. Robinson
Worldwide, Inc	62,100		2,030,670
Total Air Freight & Couriers			4,780,665
Electrical Equipment 0.4%
Molex, Inc	144,000		3,093,120
Total Electrical Equipment			3,093,120
Airlines 0.3%
RyanAir Holdings PLC
ADR*†	48,700		2,019,589
Total Airlines			2,019,589

			MARKET
			VALUE
	SHARES		(NOTE 1)
Trading Companies & Distributors 0.2%
Fastenal Co.†	60,898	$	1,716,715
Total Trading Companies
& Distributors			1,716,715
Total Industrials			43,893,069
TELECOMMUNICATION SERVICES 2.1%
Wireless Telecommunication
Services 1.9%
Nextel Communications,
Inc.*†	964,690		12,917,199
Total Wireless
Telecommunication
Services			12,917,199
Diversified
Telecommunication
Services 0.2%
Comverse Technology,
Inc.*	142,700		1,613,937
Total Diversified
Telecommunication
Services			1,613,937
Total Telecommunication
Services			14,531,136
MATERIALS 0.7%
Containers & Packaging 0.4%
Smurfit-Stone Container
Corp.*†	192,900		2,576,951
Total Containers
& Packaging			2,576,951
Chemicals 0.3%
Sigma-Aldrich Corp.†	54,200		2,411,359
Total Chemicals			2,411,359
Total Materials			4,988,310
CONSUMER STAPLES 0.4%
Food & Drug Retailing 0.4%
Whole Foods Market,
Inc.*†	46,000		2,559,441
Total Food & Drug Retailing			2,559,441
Total Consumer Staples			2,559,441

*	Non-Income Producing Securities
†	All or a portion of this security is on loan at March 31, 2003—See Note 10
ADR—American Depository Receipt
See Notes to Financial Statements.

ANNUAL REPORT 17

OTC FUND

SCHEDULEOF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
UTILITIES 0.3%
Electric Utilities 0.3%
American Power Conversion*†		156,600	$	2,229,984
Total Electric Utilities			2,229,984
Total Utilities				2,229,984
ENERGY 0.3%
Energy Equipment & Services 0.3%
Patterson-UTI Energy, Inc.*†		65,200		2,109,872
Total Energy Equipment & Services				2,109,872
Total Energy				2,109,872
Total Common Stocks(Cost $504,962,917)				650,140,826
		FACE
		AMOUNT
REPURCHASE AGREEMENTS 7.5%
Repurchase Agreement (Note 4)
1.29% due 04/01/03	$	17,446,812		17,446,812
1.25% due 04/01/03		17,446,812		17,446,812
1.20% due 04/01/03		17,446,812		17,446,812
Total Repurchase Agreements
(Cost $52,340,436)				52,340,436
Total Investments 100%
(Cost $557,303,353)			$	702,481,262

		UNREALIZED
		LOSS
	CONTRACTS	(NOTE 1)
FUTURES CONTRACTS PURCHASED
June 2003 Nasdaq 100 Futures Contracts
(Aggregate Market Value of Contracts $56,107,800)	549	$	(1,347,845	)

*	Non-Income Producing Securities
†	All or a portion of this security is on loan at March 31, 2003—See Note 10.
See Notes to Financial Statements.

18

MEDIUS FUND

SCHEDULEOF INVESTMENTS (continued) March 31, 2003

				MARKET
				VALUE
		SHARES		(NOTE 1)
COMMON STOCKS 80.0%
FINANCIALS 15.5%
Banks 8.6%
National Commerce
Financial Corp		7,411	$	175,641
Sovereign Bancorp, Inc.	.	11,042		152,932
NewYork Community
Bancorp, Inc		4,820		143,636
Commerce Bancorp,
Inc./NJ		3,215		127,764
Hibernia Corp		7,334		124,385
Greenpoint Financial
Corp		2,603		116,640
Provident Financial
Group, Inc		4,309		91,480
Investors Financial
Services Corp		3,711		90,363
M & T Bank Corp		1,115		87,617
Greater Bay Bancorp		5,910		84,513
City National Corp		1,908		83,837
Compass Bancshares, Inc.		2,612		81,677
Banknorth Group, Inc		2,500		54,525
Associated Banc-Corp		1,515		48,980
Roslyn Bancorp, Inc		2,420		43,512
The Colonial Bancgroup,
Inc		2,394		26,932
TCF Financial Corp		306		12,252
Independence Community
Bank Corp		2		53
Total Banks				1,546,739
Insurance 3.9%
Fidelity National Financial,
Inc		4,112		140,425
Protective Life Corp		4,115		117,483
American Financial Group,
Inc		4,519		89,702
Radian Group, Inc		2,117		70,666
MONY Group, Inc		3,220		67,298
The PMI Group, Inc		2,117		54,089
Old Republic International
Corp		2,019		54,008
Everest Re Group, Ltd.	.	904		51,718

			MARKET
			VALUE
	SHARES		(NOTE 1)
Brown & Brown, Inc	1,000	$	31,310
Unitrin, Inc	1,300		30,121
Total Insurance			706,820
Diversified Financials 1.8%
Legg Mason, Inc	2,819		137,398
LaBranche & Co., Inc	3,706		68,116
SEI Investments Co	2,414		63,247
Neuberger Berman, Inc.	1,412		39,861
Eaton Vance Corp	803		21,464
Investment Technology
Group, Inc.*	208		2,906
A.G. Edwards, Inc	4		104
Total Diversified Financials			333,096
Real Estate 1.2%
New Plan Excel Realty
Trust	5,710		111,859
Liberty Property Trust	2,620		82,006
Hospitality Properties
Trust	900		27,495
Total Real Estate			221,360
Total Financials			2,808,015
CONSUMER DISCRETIONARY 13.0%
Media 3.9%
Westwood One, Inc.*	4,516		141,080
Washington Post Co	205		139,679
Belo Corp. Com Ser A	6,019		121,945
Media General, Inc	1,907		93,901
Entercom Communications
Corp.*	1,517		66,611
Harte-Hanks, Inc	3,114		59,477
Emmis Communications
Corp.—Class A*	3,303		55,755
The Reader’s Digest
Association, Inc	3,010		30,732
Hispanic Broadcasting
Corp.*	4		83
Total Media			709,263

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 19

MEDIUS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Specialty Retail 2.6%
CDW Computer Centers,
Inc.*	2,805	$	114,444
Ross Stores, Inc	2,403		86,868
Chico’s FAS, Inc.*	4,320		86,400
Petsmart, Inc.*	4,412		55,591
Abercrombie & Fitch Co.*	1,700		51,051
Claire’s Stores, Inc	2,118		50,006
Copart, Inc.*	2,110		16,205
Williams-Sonoma, Inc.*	100		2,180
Payless Shoesource, Inc.*	12		188
Total Specialty Retail			462,933
Hotels Restaurants & Leisure 1.8%
Brinker International,
Inc.*	4,615		140,758
Park Place Entertainment
Corp.*	6,922		49,285
CBRL Group, Inc	1,700		46,665
Six Flags, Inc.*	8,120		45,472
International Speedway
Corp.—Class A	399		15,984
GTECH Holdings Corp.*	305		9,961
The Cheesecake Factory*	297		9,584
Krispy Kreme Doughnuts,
Inc.*	201		6,806
Papa John’s International,
Inc.*	3		75
Outback Steakhouse, Inc.	1		35
Total Hotels Restaurants
& Leisure			324,625
Auto Components 1.7%
Gentex Corp.*	4,115		104,686
Borg Warner Automotive,
Inc	2,011		96,206
Bandag, Inc	1,806		57,593
Superior Industries
International	1,098		40,000
Modine Manufacturing
Co	2		30
Total Auto Components			298,515

			MARKET
			VALUE
	SHARES		(NOTE 1)
Household Durables 1.5%
Mohawk Industries, Inc.*	2,505	$	120,090
D.R. Horton, Inc	4,220		81,024
Furniture Brands
International, Inc.*	3,003		58,738
Blyth Industries, Inc	500		12,715
Total Household Durables			272,567
Multiline Retail 0.6%
Dollar Tree Stores, Inc.*	3,610		71,839
99 Cents Only Stores*	1,700		43,350
Total Multiline Retail			115,189
Leisure Equipment & Products 0.5%
Callaway Golf Co	8,120		96,466
Total Leisure Equipment
& Products			96,466
Textiles & Apparel 0.4%
Coach, Inc.*	1,008		38,637
Unifi, Inc.*	7,019		33,761
Timberland Co.—Class A*	2		84
Total Textiles & Apparel			72,482
Total Consumer
Discretionary			2,352,040
HEALTH CARE 10.9%
Health Care Providers & Services 5.4%
Patterson Dental Co.*	3,020		138,709
Universal Health Services,
Inc.—Class B*	3,208		130,790
Express Scripts, Inc.*	2,010		111,917
First Health Group
Corp.*	4,018		102,218
Pacificare Health Systems
—Class A*	3,418		82,511
AdvancePCS*	2,401		68,044
Covance, Inc.*	2,803		64,805
Health Net, Inc.*	2,202		58,948
Lincare Holdings, Inc.* .	1,715		52,633
Triad Hospitals, Inc.*	1,707		45,918
Lifepoint Hospitals, Inc.*	1,800		45,198
Omnicare, Inc	1,501		40,842

* Non-Income Producing Securities

See Notes to Financial Statements.

20

MEDIUS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

				MARKET
				VALUE
		SHARES		(NOTE 1)
Henry Schein, Inc.*		500	$	22,550
Oxford Health Plans*		600		18,216
Total Health Care Providers
& Services				983,299
Health Care Equipment & Supplies 2.2%
Varian Medical Systems,
Inc.*		2,920		157,476
Beckman Coulter, Inc		2,409		81,978
Visx, Inc.*		5,525		58,565
Dentsply International,
Inc		1,501		52,220
Cytyc Corp.*		2,310		30,145
Apogent Technologies,
Inc.*		1,505		21,943
Hillenbrand Industries,
Inc		3		153
Steris Corp.*		5		131
Total Health Care Equipment
& Supplies				402,611
Biotechnology 1.8%
Idec Pharmaceuticals
Corp.*		5,721		195,772
Gilead Sciences, Inc.*		2,103		88,305
Incyte Genomics, Inc.*	.	5,610		16,774
Charles River Laboratories
International, Inc.*		615		15,695
Millennium
Pharmaceuticals, Inc.*		1,600		12,576
Total Biotechnology				329,122
Pharmaceuticals 1.5%
SICOR, Inc.*		7,134		119,138
Perrigo Corp		7,830		93,021
Mylan Laboratories		1,507		43,326
Sepracor, Inc.*		404		5,474
Total Pharmaceuticals				260,959
Total Health Care				1,975,991
INDUSTRIALS 10.5%
Commercial Services & Supplies 4.4%
Manpower, Inc		4,120		123,106

			MARKET
			VALUE
	SHARES		(NOTE 1)
Viad Corp	5,424	$	116,291
DST Systems, Inc.*	3,819		103,877
Kelly Services, Inc	4,394		94,559
Herman Miller, Inc	5,810		93,541
Republic Services, Inc.*	4,216		83,645
Pittston Company Brinks
Group	6,023		83,479
BISYS Group, Inc.*	2,400		39,168
Hon Industries	1,099		31,321
ChoicePoint, Inc.*	899		30,476
Education Management
Corp.*	3		119
Korn/Ferry
International*	4		26
Total Commercial Services
& Supplies			799,608
Air Freight & Couriers 1.9%
Airborne, Inc	6,310		123,739
CNF, Inc	3,519		107,154
EGL, Inc.*	4,194		62,323
JB Hunt Transport Services,
Inc.*	1,609		43,314
Expeditors International
Washington, Inc	100		3,595
Total Air Freight & Couriers			340,125
Machinery 1.6%
SPX Corp.*	2,807		95,887
Kennametal, Inc	3,218		90,522
Pentair, Inc	1,306		46,167
Harsco Corp	1,099		33,509
Flowserve Corp.*	1,294		15,075
Agco Corp.*	800		12,880
Trinity Industries, Inc	200		3,444
Donaldson Company,
Inc	1		37
Total Machinery			297,521
Aerospace & Defense 0.8%
L-3 Communications
Holdings, Inc.*	2,807		112,757
Precision Castparts Corp.	1,218		29,025
Total Aerospace & Defense			141,782

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 21

MEDIUS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Electrical Equipment 0.6%
Hubbell, Inc.—Cl B	3,594	$	112,492
Total Electrical Equipment			112,492
Building Products 0.5%
York International Corp.	4,318		90,678
Total Building Products			90,678
Construction & Engineering 0.3%
Granite Construction	3,120		48,984
Total Construction
& Engineering			48,984
Industrial Conglomerates 0.3%
Carlisle Cos., Inc	905		36,644
Teleflex, Inc	302		10,781
Total Industrial Conglomerates			47,425
Airlines 0.1%
Alaska Air Group, Inc.*	1,610		25,212
Total Airlines			25,212
Road & Rail 0.0%
Swift Transportation Co.,
Inc.*	4		64
GATX Corp	4		58
Total Road & Rail			122
Total Industrials			1,903,949
INFORMATION TECHNOLOGY 9.1%
Semiconductor Equipment
& Products 1.7%
Cree, Inc.*	5,510		102,045
Microchip Technology,
Inc	5,113		101,749
Fairchild Semiconductor
International, Inc.*	2,200		23,012
Atmel Corp.*	13,048		20,877
Cabot Microelectronics
Corp.*	495		20,726
RF Micro Devices, Inc.*	3,410		20,559
Cirrus Logic, Inc.*	8,920		17,929
Lattice Semiconductor
Corp.*	1,005		7,578

		MARKET
		VALUE
	SHARES	(NOTE 1)
Lam Research Corp.*	202	$	2,301
Cypress Semiconductor
Corp.*	100		690
International Rectifier
Corp.*	4		79
Semtech Corp.*	2		30
Integrated Device
Technology, Inc.*	2		16
Intersil Corp.—Class A*	1		15
Triquint Semiconductor,
Inc.*	3		8
Total Semiconductor Equipment
& Products		317,614
Software 1.7%
Cadence Design Systems,
Inc.*	6,712	67,120
Network Associates, Inc.*	4,016	55,461
Transaction Systems
Architects, Inc.*	9,036	53,674
Jack Henry & Associates	3,722	39,416
National Instruments
Corp.*	1,000	35,270
Sybase, Inc.*	2,015	26,094
Macromedia, Inc.*	1,917	23,157
Synopsys, Inc.*	100		4,256
Reynolds & Reynolds Co.
—Class A	3		76
RSA Security, Inc.*	3		21
Total Software		304,545
Communications Equipment 1.6%
3Com Corp.*	17,750	87,507
Advanced Fibre
Communications*	4,320	65,405
Harris Corp	1,803	50,069
McData Corp.*	5,015	43,079
Plantronics, Inc.*	801	11,703
Adtran, Inc.*	300	10,773
Powerwave Technologies,
Inc.*	2,807		9,544
Commscope, Inc.*	500		3,750
Avocent Corp.*	4		93
Total Communications
Equipment		281,923

* Non-Income Producing Securities

See Notes to Financial Statements.

22

MEDIUS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Electronic Equipment
& Instruments 1.5%
Vishay Intertech, Inc.*	6,434	$	65,498
Avnet, Inc.*	5,410		56,697
Kemet Corp.*	7,110		55,458
Tech Data Corp.*	1,907		45,654
Diebold, Inc	612		20,771
Varian, Inc.*	603		17,282
Arrow Electronics, Inc.*	1,100		16,170
Total Electronic Equipment
& Instruments			277,530
IT Consulting & Services 1.4%
Affiliated Computer Services,
Inc.—Class A*	2,902		128,443
Acxiom Corp.*	4,515		75,987
Keane, Inc.*	4,913		40,188
Gartner Group, Inc.
—Class B*	604		4,548
Titan Corp.*	500		3,725
Total IT Consulting & Services			252,891
Computers & Peripherals 0.8%
Imation Corp.*	1,609		59,887
Storage Tehnology Corp.*	2,205		44,585
SanDisk Corp.*	2,017		33,926
Total Computers & Peripherals			138,398
Internet Software & Services 0.4%
Overture Services, Inc.*	3,020		45,813
Internet Security Systems,
Inc.*	2,394		23,773
Total Internet Software
& Services			69,586
Total Information
Technology			1,642,487
ENERGY 6.5%
Oil & Gas 4.1%
Valero Energy Corp	4,003		165,644
Pogo Producing Co	3,210		127,662
Noble Energy, Inc	3,220		110,414
Forest Oil Corp.*	4,210		93,883

				MARKET
				VALUE
		SHARES		(NOTE 1)
Western Gas Resources,
Inc		2,501	$	81,407
XTO Energy, Inc		3,107		59,033
Ocean Energy, Inc		2,603		52,060
Pioneer Natural
Resources Co.*		1,800		45,180
Murphy Oil Corp		298		13,163
Total Oil & Gas				748,446
Energy Equipment & Services 2.4%
Tidewater, Inc		3,720		106,838
Smith International, Inc.*		2,818		99,278
Varco International, Inc.*		4,617		84,537
National-Oilwell, Inc.*	.	2,019		45,206
Weatherford International,
Ltd.*		1,017		38,412
Hanover Compressor
Co.*		3,217		20,911
Helmerich & Payne, Inc.		603		15,449
ENSCO International,
Inc		505		12,883
FMC Technologies, Inc.*		102		1,958
Total Energy Equipment
& Services				425,472
Electric Utilities 0.0%
Westar Energy, Inc		4		48
Total Electric Utilities				48
Total Energy				1,173,966
UTILITIES 5.8%
Electric Utilities 3.7%
Wisconsin Energy Corp.		5,610		142,494
Great Plains Energy, Inc.		4,610		110,041
Hawaiian Electric
Industries		2,601		106,017
Allete		4,519		93,814
DPL, Inc		6,810		84,853
Northeast Utilities		5,825		81,084
WPS Resources Corp		803		32,120
PNM Resources, Inc		495		11,132
Idacorp		2		46
Total Electric Utilities				661,601

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 23

MEDIUS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

				MARKET
				VALUE
		SHARES		(NOTE 1)
Multi-Utilities 1.3%
Energy East Corp		6,111	$	108,776
National Fuel Gas Co		3,311		72,411
Scana Corp		2,110		63,131
Total Multi-Utilities				244,318
Gas Utilities 0.8%
WGL Holdings, Inc		3,820		101,192
AGL Resources, Inc		2,118		50,048
Total Gas Utilities				151,240
Total Utilities				1,057,159
CONSUMER STAPLES 4.5%
Food Products 2.3%
Dean Foods Co.*		3,708		159,110
JM Smucker Co		3,120		109,107
Lancaster Colony Corp.		2,600		99,707
Sensient Technologies
Corp		1,906		38,158
Hormel Foods Corp		610		12,914
Total Food Products				418,996
Beverages 1.3%
PepsiAmericas, Inc		9,542		112,214
Constellation Brands, Inc.*		4,920		111,684
Total Beverages				223,898
Hotels Restaurants & Leisure 0.7%
Dreyers Grand Ice Cream		1,903		131,916
Total Hotels Restaurants
& Leisure				131,916
Household Products 0.2%
Church & Dwight, Inc.	.	1,217		36,948
Total Household Products				36,948
Tobacco 0.0%
Universal Corp.—Va		1		38
Total Tobacco				38
Total Consumer Staples				811,796

				MARKET
				VALUE
		SHARES		(NOTE 1)
MATERIALS 3.7%
Chemicals 2.2%
Lubrizol Corp		3,110	$	93,331
Cytec Industries, Inc.*		3,320		92,462
RPM International, Inc.	.	8,626		90,573
Airgas, Inc.*		1,800		33,318
Valspar Corp		603		24,681
Minerals Technologies, Inc.		603		22,980
Crompton Corp		5,213		21,113
Albemarle Corp		598		14,561
Lyondell Chemical Co.	.	2		28
Solutia, Inc		2		3
Total Chemicals				393,050
Containers & Packaging 0.6%
Sonoco Products Co		1,899		39,746
Packaging Corp.
of America*		2,018		36,344
Longview Fibre Co		4,020		26,733
Total Containers & Packaging				102,823
Paper & Forest Products 0.5%
Rayonier, Inc		1,899		83,670
Glatfelter		1,100		11,726
Wausau-Mosinee Paper
Corp		497		5,070
Total Paper & Forest Products				100,466
Metals & Mining 0.3%
Peabody Energy Corp		2,211		61,665
AK Steel Holding Corp.*		1		3
Total Metals & Mining				61,668
Construction Materials 0.1%
Martin Marietta Materials,
Inc		500		13,805
Total Construction Materials				13,805
Total Materials				671,812

* Non-Income Producing Securities

See Notes to Financial Statements.

24

MEDIUS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

		MARKET
		VALUE
	SHARES	(NOTE 1)
TELECOMMUNICATION SERVICES 0.5%
Diversified Telecommunication
Services 0.5%
Broadwing, Inc.*	19,873	$79,491
Total Diversified Telecommunication
Services	79,491
Wireless Telecommunication
Services 0.0%
Price Communications
Corp.*	398	4,760
Total Wireless
Telecommunication Services		4,760
Total Telecommunication
Services		84,251
Total Common Stocks
(Cost $13,918,966)	14,481,466

			MARKET
	FACE		VALUE
	MOUNT		(NOTE 1)
REPURCHASE AGREEMENTS 20.0%
Repurchase Agreement(Note 4)
1.29% due 04/01/03	$	1,206,365	$	1,206,365
1.25% due 04/01/03		1,206,365		1,206,365
1.20% due 04/01/03		1,206,365		1,206,365
Total Repurchase Agreements
(Cost $3,619,095)				3,619,095
Total Investments 100%
(Cost $17,538,061)			$	18,100,561

		UNREALIZED
		GAIN
	CONTRACTS	(NOTE 1)
FUTURES CONTRACTS PURCHASED
June 2003 S&P MidCap 400 Futures Contracts
(Aggregate MarketValueof Contracts $5,112,500)	25	$	95,500
	UNITS
EQUITY INDEX SWAP AGREEMENT
May 2003 S&P MidCap 400 Index Swaps, Maturing 05/16/03**
(Total Notional Value $11,120,854)	26,450	$	19,507

*	Non-Income Producing Securities
**	Price Return based on S&P MidCap 400 Index +/- financing at a variable rate.
See Notes to Financial Statements.

ANNUAL REPORT 25

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

				MARKET
				VALUE
		SHARES		(NOTE 1)
COMMON STOCKS 52.6%
FINANCIALS 12.8%
Banks 8.7%
CB Bancshares, Inc		13,105	$	639,262
N B T Bancorp, Inc		33,016		575,469
WSFS Financial Corp		15,907		502,661
Boston Private Financial
Holdings, Inc		28,519		426,644
The Trust Company
Of N.J		15,613		426,547
Banc Corporation		72,118		358,427
Republic Bancshares,
Inc.*		16,807		335,300
Staten Island Bancorp,
Inc		19,009		283,614
Net.Bank, Inc		19,513		181,276
Sun Bancorp, Inc.- Nj*	.	11,905		174,527
Nara Bancorp		7,808		99,396
Riggs National Corp		6,604		94,767
Humboldt Bancorp		7,303		93,186
International Bancshares
Corp		1,804		70,013
Pacific Capital Bancorp.	.	2,295		68,024
Firstfed American
Bancorp, Inc		1,803		50,484
R & G Financial Corp		2,205		48,510
Westcorp		2,306		42,822
Private Bancorp, Inc		1,401		31,761
Chittenden Corp		6		157
Irwim Financial Corp		4		78
MAF Bancorp, Inc		2		67
First Bancorp
Puerto Rico		2		54
Flagstar Bancorp, Inc		2		53
Provident Bankshares
Corp		2		46
Superior Financial Corp.		2		37
United Bankshares, Inc.	.	1		28
Amcore Financial, Inc		1		22
Total Banks				4,503,232

				MARKET
				VALUE
		SHARES		(NOTE 1)
Real Estate 3.2%
Anworth Mortgage
Asset Corp		42,030	$	548,912
Heritage Property
Investment Trust		21,511		538,851
MFA Mortgage
Investments, Inc		18,508		160,094
Sizeler Property
Investors		15,513		144,116
Senior Housing
Properties Trust		11,510		132,940
LNR Property Corp		1,402		47,247
Trammell Crow
Company*		5,500		43,780
Jones Lang LaSalle,
Inc.*		1,897		25,913
Universal Health
Realty Income		4		104
SL Green Realty Corp.	.	2		61
Capstead Mortgage
Corp		4		46
RAIT Investment Trust	.	2		45
Town & Country
Trust/The		2		40
Thornburg Mortgage,
Inc		1		21
Total Real Estate				1,642,170
Insurance 0.6%
Argonaut Group, Inc		15,508		132,593
Navigators Group, Inc.*.		3,104		79,835
Odyssey Re Hldgs Corp.		4,307		77,741
Landamerica Financial
Group, Inc		596		23,691
PMA Capital Corp		2,398		16,234
Triad Guaranty, Inc.*		2		69
American Medical
Security Group, Inc.*		3		40
Alfa Corp		2		23
Total Insurance				330,226
Diversified Financials 0.3%
Saxon Capital, Inc.*		9,002		119,817
Jefferies Group, Inc		1,302		46,807

* Non-Income Producing Securities

See Notes to Financial Statements.

26

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
New Century Financial
Corp	3	$	93
Idine Rewards Network,
Inc.*	2		15
Total Diversified Financials			166,732
Total Financials			6,642,360
INFORMATION TECHNOLOGY 9.5%
Software 2.2%
Take Two Interactive
Software, Inc.*	3,104		69,374
Hyperion Solutions
Corp .*	2,599		63,026
Barra, Inc.*	1,905		56,559
Kronos, Inc.*	1,600		56,080
Progress Software
Corp.*	2,997		53,796
Mentor Graphics Corp.*	6,000		53,640
Novell, Inc.*	23,614		50,770
Netiq Corp.*	4,203		46,905
Factset Research
Systems, Inc	1,400		45,430
Parametric Technology
Corp.*	20,608		44,719
THQ, Inc.*	3,400		44,472
Borland Software Corp.*	4,607		42,384
Red Hat, Inc.*	6,702		36,392
ANSYS, Inc.*	1,504		36,021
Documentum, Inc.*	2,697		35,385
Wind River Systems*	11,658		34,741
Quest Software, Inc.*	3,601		32,409
Serena Software, Inc.*	1,905		30,406
Informatica Corp.*	4,304		27,761
Ascential Software
Corp.*	9,605		26,894
TIBCO Software, Inc.* .	6,306		26,485
Filenet Corp.*	2,505		26,277
Sonicwall, Inc.*	7,100		25,560
JDA Software Group,
Inc.*	2,500		25,275
Scansoft, Inc.*	5,099		22,946
Renaissance Learning,
Inc.*	1,301		22,937

			MARKET
			VALUE
	SHARES		(NOTE 1)
Manugistics Group, Inc.*	9,607	$	21,904
Legato Systems, Inc.*	4,200		21,546
Entrust Technologies,
Inc.*	8,505		21,263
Pegasystems, Inc.*	4,799		19,148
Altiris, Inc.*	1		12
Infogrames, Inc.*	1		2
Total Software			1,120,519
Semiconductor Equipment &
Products 2.0%
Cree, Inc.*	4,806		89,007
Silicon Laboratories,
Inc.*	3,099		81,039
Rambus, Inc.*	6,107		80,674
Power Integrations, Inc.*	3,000		62,190
Cabot Microelectronics
Corp.*	1,405		58,827
Siliconix, Inc.*	2,006		47,743
Skyworks Solutions,
Inc.*	7,504		46,750
Kopin Corp.*	8,810		44,402
MEMC Electronic
Materials, Inc.*	3,907		43,954
ESS Technologies, Inc.* .	6,700		39,932
Varian Semiconductor
Equipment Associates,
Inc.*	1,803		36,673
LTX Corp.*	7,109		35,545
Photronics, Inc.*	2,902		34,505
Lattice Semiconductor
Corp.*	4,100		30,914
Zoran Corp.*	2,300		29,693
Vitesse Semiconductor
Corp.*	13,510		28,911
Genesis Microchip*	2,200		27,456
Cirrus Logic, Inc.*	12,608		25,342
Axcelis Technology, Inc.*	5,100		24,123
Actel Corp.*	1,400		23,884
Triquint Semiconductor,
Inc.*	8,210		23,152
ATMI, Inc.*	1,200		23,112
Cohu, Inc	1,501		21,960
Silicon Storage Technology,
Inc.*	9,309		21,411

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 27

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

				MARKET
				VALUE
		SHARES		(NOTE 1)
Artisan Components,
Inc.*		1,200	$	19,393
On Semiconductor
Corp.*		15,138		19,225
Electroglas, Inc.*		16,014		14,092
Brooks Automation, Inc.*		3		29
Globespan, Inc.*		2		9
Total Semiconductor Equipment
& Products				1,033,947
Electronic Equipment
& Instruments 1.6%
MTS Systems Corp		10,803		116,672
Roper Industries, Inc		3,199		92,291
Varian, Inc.*		2,202		63,109
Benchmark Electronics,
Inc.*		2,202		62,383
Rogers Corp.*		1,801		53,526
Cognex Corp.*		2,502		52,967
Itron, Inc.*		2,997		50,080
Trumble Navigation,
Ltd.*		2,506		47,464
Anixter International,
Inc.*		1,800		40,806
Plexus Corp.*		4,400		40,260
Identix, Inc.*		6,909		31,090
Littlefuse, Inc.*		1,698		30,377
Sypris Solutions, Inc		3,599		28,360
Coherent, Inc.*		1,504		28,200
Pioneer Standard
Electronics		2,899		24,468
CTS Corp		3,002		18,312
Photon Dynamics, Inc.*		1,000		16,360
Electro Scientific
Industries, Inc.*		1,201		15,085
Scansource, Inc.*		800		15,000
Analogic Corp		1		46
Newport Corp.*		3		35
Technitrol, Inc.*		2		29
Lexar Media, Inc.*		3		10
Total Electronic Equipment
& Instruments				826,930
Computers & Peripherals 1.1%
Western Digital Corp.*	.	12,710		115,153

			MARKET
			VALUE
	SHARES		(NOTE 1)
Imation Corp.*	2,805	$	104,402
SanDisk Corp.*	4,201		70,661
Maxtor Corp.*	9,409		52,973
Hutchinson Technology,
Inc.*	1,700		42,024
Intergraph Corp.*	2,404		41,685
Electronics For Imaging*	1,900		33,609
Palm, Inc.*	3,000		29,967
Pinnacle Systems, Inc.*	2,600		27,066
Avid Technology, Inc.*	903		19,992
Infocus Corp.*	3,600		17,784
Concurrent Computer
Corp.*	7,308		16,151
Read-Rite Corporation*	12,609		8,196
Total Computers & Peripherals			579,663
Internet Software & Services 1.1%
DoubleClick, Inc.*	7,400		57,498
Earthlink, Inc.*	9,908		56,971
Ariba, Inc.*	18,413		51,925
Overture Services, Inc.*	2,805		42,552
United Online, Inc.*	2,402		41,410
Fidelity National
Information Solutions,
Inc.*	2,300		40,825
webMethods, Inc.*	4,104		37,469
Digital Insight Corp.*	2,505		34,945
Interland, Inc.*	42,426		28,001
Internet Security Systems,
Inc.*	2,801		27,814
CNET Networks, Inc.*	10,811		27,136
Webex Communications,
Inc.*	2,399		24,806
Websense, Inc.*	1,500		22,005
FreeMarkets, Inc.*	3,600		19,692
Openwave Systems, Inc.*	12,610		17,906
The Trizetto Group,
Inc.*	4,000		16,520
PEC Solutions, Inc.*	700		8,246
Total Internet Software
& Services			555,721
Communications Equipment 1.0%
Interdigital Comm
Corp.*	2,700		61,109

* Non-Income Producing Securities

See Notes to Financial Statements.

28

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Avocent Corp.*	2,403	$	56,086
Foundry Networks, Inc.*	6,602		53,080
McData Corp.*	5,001		42,959
Plantronics, Inc.*	2,699		39,432
Extreme Networks, Inc.*	9,003		38,983
Adtran, Inc.*	998		35,838
Ixia*	6,802		33,058
Black Box Corp	1,100		32,593
Sycamore Networks, Inc.*	10,608		32,354
Echelon Corp.*	2,700		28,512
Inter-Tel, Inc	1,500		22,515
Anaren Microwave, Inc.*	2,106		18,217
Tekelec*	1,799		15,615
Inrange Technologies
Corp.*	8,507		15,568
Powerwave Technologies,
Inc.*	4,200		14,280
F5 Networks, Inc.*	4		51
Netscreen Technologies,
Inc.*	2		34
Turnstone Systems, Inc.*	4		11
Proxim Corp.*	1		1
Total Communications
Equipment			540,296
IT Consulting & Services 0.5%
American Management
Systems, Inc.*	5,008		60,497
CACI International, Inc.*	1,700		56,712
Keane, Inc.*	4,307		35,231
Manhattan Associates,
Inc.*	1,904		33,377
Maximus, Inc.*	1,000		21,220
Gartner, Inc. - Class A*	2,998		20,836
Cognizant Tech Solutions
Corp.*	300		20,205
SRA International, Inc.*	704		16,685
Total IT Consulting & Services			264,763
Office Electronics 0.0%
Global Imaging Systems*	1,400		25,900
Total Office Electronics			25,900
Total Information
Technology			4,947,739

			MARKET
			VALUE
	SHARES		(NOTE 1)
INDUSTRIALS 7.1%
Commercial Services & Supplies 3.1%
Kroll, Inc.*	6,406	$	137,152
Corinthian Colleges,
Inc.*	2,802		110,679
Corporate Executive
Board Co.*	3,097		110,315
Rollins, Inc	4,508		103,819
ABM Industries, Inc	7,702		101,204
Intrado, Inc.*	8,707		68,785
Stericycle, Inc.*	1,700		63,903
Probusiness Services,
Inc.*	4,503		59,980
Tetra Tech, Inc.*	3,798		53,704
Imagistics International,
Inc.*	2,806		52,248
Pre-Paid Legal Services,
Inc.*	2,800		48,384
Kelly Services, Inc	2,201		47,365
ITT Educational Services,
Inc.*	1,600		44,800
Sourcecorp*	3,106		43,515
Waste Connections, Inc.*	1,200		41,400
Heidrick & Struggles,
Inc.*	3,501		40,612
Cornell Companies,
Inc.*	4,700		39,480
Korn/Ferry
International*	5,701		37,342
Watson Wyatt & Co.
Holdings*	1,801		36,200
Costar Group, Inc.*	1,598		35,666
CDI Corp.*	1,500		34,950
Pegasus Solutions, Inc.*	3,098		34,698
Teletech Holdings, Inc.*	6,205		33,693
Infousa, Inc. Class B*	6,602		31,690
PRG-Schultz
International, Inc.*	4,201		30,289
United Stationers, Inc.*	1,300		27,755
Coinstar, Inc.*	1,598		26,830
Insurance Auto Auctions,
Inc.*	2,402		26,422
Medquist, Inc.*	1,501		25,592
CCC Information
Services Group*	1,403		22,701
Efunds Corp.*	2,097		14,406

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 29

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

					MARKET
					VALUE
			SHARES		(NOTE 1)
Standard Register Co			4	$	60
Sotheby’s Holdings*			4		37
Bowne & Co., Inc			2		20
Wackenhut Corections
Corp.*			2		20
Sylvan Learning
Systems, Inc.*			1		16
NCO Group, Inc.*			1		14
Princeton Review, Inc.*			2		8
Total Commercial Services
& Supplies					1,585,754
Machinery 1.4%
Kennametal, Inc		5,208			146,501
Oshkosh Truck Corp		1,298			80,865
Nacco Industries, Inc		1,302			59,892
IDEX Corp		1,598			46,342
Dionex Corp.*		1,298			42,873
Unova, Inc.*		6,893			37,015
Tennant Co		1,100			34,650
Joy Global, Inc.*		3,199			34,645
Manitowoc Co., Inc		1,906			32,040
Terex Corp.*		2,505			30,962
Tecumseh Products Co.
—Class A		697			28,563
Lincoln Electric
Holdings, Inc		1,499			27,072
Lindsay Manufacturing		1,201			25,821
Clarcor, Inc		698			25,268
Valmont Industries, Inc.		1,103			23,825
Astec Industries, Inc.*		2,897			16,832
Briggs & Stratton			4		155
Circor International, Inc.			3		41
Total Machinery					693,362
Electrical Equipment 0.7%
Thomas & Betts Corp.*	.	5,208			73,849
Rayovac Corp.*		6,804			73,823
Ametek, Inc		1,599			52,783
A.O. Smith Corp		1,404			37,627
Plug Power, Inc.*		5,808			29,389
Penn Engineering &
Manufacturing Corp.		2,097			24,157
Power One, Inc.*		3,800			16,720
C&D Technologies Inc.	.	1,299			15,562

				MARKET
				VALUE
		SHARES		(NOTE 1)
Belden, Inc		1,402	$	15,072
Magnetek, Inc.*		4,899		11,758
Total Electrical Equipment				350,740
Aerospace & Defense 0.6%
Orbital Sciences Corp.*		12,008		62,081
DRS Technologies, Inc.*		2,300		57,523
Cubic Corp		2,402		39,201
Mercury Computer
Systems, Inc.*		1,300		35,360
Intergrated Defense
Technologies, Inc.*		2,297		32,617
Esterline Technologies
Corp.*		1,706		28,848
AAR Corp		6,202		23,444
Aeroflex, Inc.*		3,700		20,942
Aviall, Inc.*		4		31
Armor Holdings, Inc.*	.	3		30
Total Aerospace & Defense				300,077
Road & Rail 0.5%
Werner Enterprises, Inc.		4,400		84,744
Arkansas Best Corp		2,303		58,542
Dollar Thrifty Automotive
Group, Inc.*		2,802		46,653
Usfreightways Corp		1,502		38,016
Knight Transportation,
Inc.*		1,199		23,609
Roadway Express, Inc		700		23,464
Total Road & Rail				275,028
Building Products 0.3%
Lennox International,
Inc		5,501		79,214
Simpson Manufacturing
Co, Inc.*		1,205		40,729
Trex Company, Inc.*		600		19,368
Total Building Products				139,311
Air Freight & Couriers 0.2%
EGL, Inc.*		4,104		60,985
Forward Air Corp.*		1,504		32,729
JB Hunt Transport
Services, Inc.*		899		24,201
Airborne, Inc		2		39
Total Air Freight & Couriers				117,954

* Non-Income Producing Securities

See Notes to Financial Statements.

30

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

				MARKET
				VALUE
		SHARES		(NOTE 1)
Airlines 0.1%
Airtran Holdings, Inc.*	.	8,906	$	59,938
Atlantic Coast Airlines
Holdings, Inc.*		1,501		9,321
Total Airlines				69,259
Industrial Conglomerates 0.1%
Carlisle Cos., Inc		1,697		68,712
Total Industrial Conglomerates				68,712
Construction & Engineering 0.1%
EMCOR Group, Inc.*		798		38,503
URS Corp.*		1,505		17,353
Total Construction &
Engineering				55,856
Total Industrials				3,656,053
CONSUMER DISCRETIONARY 5.5%
Specialty Retail 2.5%
Aeropostale, Inc.*		6,308		83,581
Claire’s Stores, Inc		3,398		80,227
Payless Shoesource, Inc.*		4,600		71,990
AnnTaylor Stores Corp.*		3,301		67,769
OfficeMax, Inc.*		13,105		67,491
Pacific Sunwear of
California, Inc.*		3,299		67,135
Linens ‘N Things, Inc.*	.	3,300		67,056
Dress Barn, Inc.*		4,801		64,573
United Auto Group,
Inc.*		5,003		58,785
Hot Topic,Inc.*		2,400		55,944
Gymboree Corp.*		3,700		55,648
Asbury Automotive
Group*		6,908		55,264
Hollywood Entertainment
Corp.*		3,100		49,724
Too, Inc.*		2,500		41,525
Christopher & Banks
Corp.*		2,098		37,135
Charming Shoppes*		10,603		37,110
Men’s Wearhouse, Inc.*	.	2,298		34,378
Hughes Supply, Inc		1,400		32,606
Jo-Ann Stores Inc
—Class A*		1,605		32,100

			MARKET
			VALUE
	SHARES		(NOTE 1)
Movie Gallery, Inc.*	1,700	$	29,614
Guitar Center, Inc.*	1,400		28,518
Group 1 Automotive,
Inc.*	1,302		27,863
Stage Stores, Inc.*	1,300		27,534
Electronica Boutique
Holdings*	1,600		26,864
Burlington Coat Factory
Warehouse Corp	1,303		21,239
Urban Outfitters, Inc.* .	904		20,340
Children’s Place*	2,198		20,243
Lithia Motors, Inc.*	1,402		17,245
Tractor Supply Co.*	500		16,510
Finlay Enterprises, Inc.*.	4		51
A.C. Moore Arts &
Crafts, Inc.*	2		28
CSK Auto Corp.*	2		18
Total Specialty Retail			1,296,108
Hotels Restaurants & Leisure 1.1%
Landry’s Restaurants,
Inc	5,300		89,040
Dover Downs Gaming
& Entertainment, Inc.	6,806		67,311
Jack In The Box, Inc.*	3,598		65,160
Penn National Gaming,
Inc.*	3,503		62,178
Boyd Gaming Corp.*	3,600		45,900
BOB Evans Farms	1,899		45,747
O’Charleys, Inc.*	2,098		40,219
Panera Bread Company*	1,300		39,637
Boca Resorts, Inc.
—Class A*	2,800		30,828
Afc Enterprises*	1,800		24,228
Bally’s Health & Tennis
Corp.*	3,599		18,247
WMS Industries, Inc.*	1,400		17,850
Churchill Downs, Inc	504		17,136
Buca, Inc.*	2,203		12,116
Rare Hospitality
International, Inc.*	2		56
IHOP Corp	2		45
Argosy Gaming Co.*	1		20
Total Hotels Restaurants
& Leisure			575,718

-------------------------------------

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 31

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Leisure Equipment & Products 0.6%
SCP Pool Corp.*	2,397	$	71,215
Nautilus Group, Inc	4,606		65,681
Racing Champions Ertl
Corp.*	2,906		44,607
Action Performance Cos.,
Inc	1,700		35,955
Oakley, Inc.*	4,107		33,883
Parkervision, Inc.*	3,705		20,896
Midway Games, Inc.*	5,100		16,881
Jakks Pacific, Inc.*	1,300		13,468
Total Leisure Equipment
& Products			302,586
Household Durables 0.3%
Wci Communities, Inc.*	6,402		66,965
Yankee Candle Co.*	2,798		47,650
Kimball International	2,197		30,650
Tupperware Corp	1,500		20,730
Blyth Industries, Inc	700		17,801
Total Household Durables			183,796
Textiles & Apparel 0.3%
Stride Rite Corp	7,604		64,634
Quiksilver, Inc.*	1,600		48,992
Kenneth Cole Productions,
Inc.—Class A*	1,202		26,324
Total Textiles & Apparel			139,950
Auto Components 0.2%
Raytech Corp.*	14,102		82,779
Superior Industries
International	500		18,215
Tower Automotive, Inc.*	5,801		13,748
Bandag, Inc	2		64
Aftermarket Technology
Corp.*	2		22
Total Auto Components			114,828
Media 0.2%
Crown Media Holdings,
Inc.—Class A*	14,407		39,619
Macrovision Corp.*	2,200		26,378
Sinclair Broadcast Group,
Inc.*	2,400		18,864

				MARKET
				VALUE
		SHARES		(NOTE 1)
AMC Entertainment,
Inc.*		2	$	18
TiVo, Inc.*		2		10
Total Media				84,889
Internet & Catalog Retail 0.1%
Insight Enterprises, Inc.*	6,303			44,436
The J. Jill Group, Inc.* .	1,397			16,205
Alloy, Inc.*	1,798			9,008
Priceline.com, Inc.*		1		2
Total Internet & Catalog Retail				69,651
Multiline Retail 0.1%
Shopko Stores, Inc.*	1,901			22,147
Stein Mart, Inc.*	3,899			19,885
Total Multiline Retail				42,032
Automobiles 0.1%
Monaco Coach Corp*	1,697			17,581
Winnebago Industries,
Inc	600			16,320
Total Automobiles				33,901
Total Consumer
Discretionary				2,843,459
HEALTH CARE 5.4%
Biotechnology 1.9%
Neurocrine Biosciences,
Inc.*	1,500			62,670
ImClone Systems, Inc.*	3,299			54,697
Amylin Pharmaceuticals,
Inc.*	3,200			51,840
Abgenix, Inc.*	5,907			51,391
Techne Corp.*	2,400			49,608
Trimeris, Inc.*	1,202			49,498
Applera Corp.—Celera
Genomics Group*	5,400			46,548
Corixa Corp.*	6,502			44,474
Protein Design Labs,
Inc.*	5,307			39,272
Enzon, Inc.*	3,403			38,624
Tanox, Inc.*	2,706			35,043
Exelixis, Inc.*	4,802			31,981
Gene Logic, Inc.*	5,907			29,949

* Non-Income Producing Securities

See Notes to Financial Statements.

32

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Arena Pharmaceuticals,
Inc.*	4,498	$	29,597
CV Therapeutics, Inc.*	1,498		27,009
Incyte Genomics, Inc.*	8,803		26,321
Genta, Inc.*	3,598		25,679
Tularik, Inc.*	4,907		24,780
IDEXX Laboratories,
Inc.*	700		24,479
Alexion Pharmaceuticals,
Inc.*	2,004		24,369
Telik, Inc.*	1,805		24,259
Caliper Technologies
Corp.*	6,403		22,411
Enzo Biochem, Inc.*	1,704		22,271
Cell Genesys, Inc.*	3,004		22,200
OSI Pharmaceuticals,
Inc.*	1,300		20,800
United Therapuetics
Corp.*	1,098		18,930
Diversa Corp.*	1,998		18,701
Regeneron Pharmaceutical,
Inc.*	2,399		18,040
Transkaryotic Therapies,
Inc.*	2,698		15,891
La Jolla Pharmaceutical
Co.*	4,303		7,272
Zymo Genetics, Inc.*	1		9
Total Biotechnology			958,613
Health Care Equipment & Supplies 1.4%
Resmed, Inc.*	1,800		57,564
Cooper Cos	1,800		53,820
Datascope Corp	1,703		46,117
Thoratec Labs Corp.*	3,504		44,466
Wright Medical Group,
Inc.*	2,499		43,782
Respironics, Inc.*	1,102		37,877
Viasys Healthcare, Inc.*	2,698		37,772
Bio-Rad Laboratories,
Inc.*	1,001		35,786
Invacare Corp	1,104		34,765
Visx, Inc.*	3,104		32,902
Nektar Therapeutics*	4,703		29,723
Aksys, Ltd.*	4,201		29,407
Mentor Corp	1,700		29,087

			MARKET
			VALUE
	SHARES		(NOTE 1)
Haemonetics Corp./
Mass*	1,298	$	28,361
Igen, Inc.*	699		24,738
Sybron Dental Specialties,
Inc.*	1,399		24,413
Hologic, Inc.*	2,801		24,119
Therasense, Inc.*	3,501		23,387
American Medical Sys
Hldgs*	1,500		21,675
Inamed Corp.*	604		21,605
Cerus Corp.*	2,202		19,378
Ocular Sciences, Inc.*	1,200		16,680
Molecular Devices
Corp.*	1,300		15,730
Possis Medical, Inc.*	3		48
Ventana Medical Systems*	2		40
Total Health Care Equipment
& Supplies			733,242
Health Care Providers & Services 1.1%
Covance, Inc.*	3,903		90,237
Apria Healthcare Group,
Inc.*	2,500		58,400
Genesis Health Ventures,
Inc.*	3,104		46,126
Pediatrix Medical Group,
Inc.*	1,500		37,710
Priority Healthcare
Corp.*	1,396		37,203
NDC Health Corp	2,203		36,944
Service Corp.
International/US*	12,506		34,767
Odyssey Healthcare,
Inc.*	1,397		33,207
US Oncology, Inc.*	4,503		31,971
Pacificare Health Systems
—Class A*	1,300		31,382
Amerigroup Corp.*	1,000		29,260
Province Healthcare Co.*	3,300		29,205
Cardinal Health, Inc	486		27,687
Amsurg Corp.*	1,000		25,200
Select Medical Corp.*	1,403		19,993
Kindred Healthcare,
Inc.*	1,098		12,420
Total Health Care Providers
& Services			581,712

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 33

MEKROS FUND

SCHEDULEOF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Pharmaceuticals 1.0%
Sepracor, Inc.*	6,205	$	84,078
Scios, Inc.*	1,800		79,308
Endo Pharmaceuticasl
Hldgs, Inc.*	4,703		63,443
InterMune, Inc.*	2,300		49,335
Antigenics, Inc.*	4,199		34,810
NPS Pharmaceuticals,
Inc.*	2,203		34,058
Alpharma, Inc.—Class A	1,897		34,013
Esperion Therapeutics,
Inc.*	3,305		32,885
Adolor Corp.*	2,901		28,749
The Medicines Co.*	1,400		26,096
Guilford Pharmaceuticals,
Inc.*	6,407		23,706
Atrix Labs, Inc.*	1,505		21,145
Ligand Pharmaceuticals,
Inc.*	1		7
Total Pharmaceuticals			511,633
Total Health Care			2,785,200
MATERIALS 4.3%
Chemicals 1.8%
Cytec Industries, Inc.*	8,904		247,976
Airgas, Inc.*	8,106		150,042
FMC Corp.*	7,308		114,589
Crompton Corp	25,318		102,538
Great Lakes Chemical
Corp	3,602		79,964
PolyOne Corp	17,311		67,513
Cambrex Corp	2,699		64,830
MacDermid, Inc	2,897		59,244
W.R. Grace & Co.*	38,522		57,013
Minerals Technologies,
Inc	699		26,639
Total Chemicals			970,348
Metals & Mining 1.1%
Worthington Industries .	21,417		255,505
Century Aluminum Co. .	11,002		69,863
Steel Dynamics, Inc.*	5,602		65,263
Imco Recycling, Inc.*	8,507		54,020
Ryerson Tull, Inc	8,401		52,506

				MARKET
				VALUE
		SHARES		(NOTE 1)
Hecla Mining Co.*		12,604	$	41,467
Nn, Inc		2,100		18,398
USEC, Inc		2		11
Total Metals & Mining				557,033
Construction Materials 0.7%
Centex Construction
Products		5,100		183,600
Amcol International
Corp		16,707		94,896
Florida Rock Industries,
Inc		1,597		54,058
Ameron International
Corp		400		23,920
Texas Industries, Inc		4		77
Total Construction Materials				356,551
Containers & Packaging 0.6%
Longview Fibre Co		14,810		98,486
Silgan Holdings, Inc.*		4,298		95,287
Crown Holdings, Inc.*	.	16,707		93,893
Jarden Corp.*		702		18,252
Total Containers & Packaging				305,918
Paper & Forest Products 0.1%
Louisiana-Pacific Corp.*		3,004		23,822
Buckeye Technologies,
Inc.*		3,904		18,544
Total Paper & Forest Products				42,366
Total Materials				2,232,216
UTILITIES 2.7%
Electric Utilities 1.9%
WPS Resources Corp		6,306		252,240
Empire District Electric
Co		11,002		193,635
Otter Tail Power Co		4,400		113,960
Black Hills Corp		3,303		90,800
Cleco Corp		6,501		81,588
Unisource Energy Corp.		4,400		76,120
PNM Resources, Inc		2,603		58,541
Mge Energy, Inc		1,802		47,717
Central Vermont Public
Service Corp		1,300		22,360

* Non-Income Producing Securities

See Notes to Financial Statements.

34

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
UIL Holdings Corp	500	$	17,350
Total Electric Utilities			954,311
Multi-Utilities 0.5%
Oneok, Inc	12,312		225,802
Sierra Pacific Resources*	14,111		44,873
Total Multi-Utilities			270,675
Gas Utilities 0.2%
AGL Resources, Inc	3,505		82,823
Energen Corp	697		22,346
Piedmont Natural Gas
Co	4		143
Southern Union Co.*	4		49
Semco Energy, Inc	3		10
Total Gas Utilities			105,371
Water Utilities 0.1%
California Water Service
Grp	2,303		59,302
Total Water Utilities			59,302
Total Utilities			1,389,659
ENERGY 2.4%
Energy Equipment & Services 1.3%
Global Industries, Ltd.*	40,423		188,371
Lufkin Industries, Inc	3,605		69,036
Universal Compression
Holdings, Inc.*	3,698		64,530
Key Energy Group, Inc.*	6,099		61,478
Lone Star Technologies*	2,803		59,199
Veritas DGC, Inc.*	6,500		43,225
Maverick Tube Corp.*	2,197		40,864
Offshore Logistics, Inc.*	2,199		39,692
Oceaneering International,
Inc.*	1,803		39,396
Seacor Smit, Inc.*	1,001		35,035
Newpark Resources, Inc.*	5,402		24,471
Tetra Technologies, Inc.*	2		46
Oil States International,
Inc.*	1		12
Total Energy Equipment
& Services			665,355

				MARKET
				VALUE
	SHARES			(NOTE 1)
Oil & Gas 1.1%
Spinnaker Exploration
Co.*		4,700	$	91,274
Nuevo Energy Co.*		5,100		69,105
Magnum Hunter Resources,
Inc.*		9,309		51,944
Penn Virginia Corp		1,199		46,042
3TEC Energy Corp.*		2,706		40,752
Swift Energy Co.*		4,705		40,040
Vintage Petroleum, Inc.	.	4,100		38,950
St. Mary Land &
Exploration Co		1,499		37,550
Harvest Natural
Resources, Inc.*		7,601		36,941
Houston Exploration Co.*		1,301		35,127
Patina Oil & Gas Corp.	.	1,000		32,900
Tesoro Pete Corp.*		4,400		32,560
Exploration Co. Of
Delaware*		9,802		29,602
Transmontaigne Oil Co.*		4,802		20,216
Overseas Shipholding
Group		1		17
Range Resources Corp.*		2		11
Total Oil & Gas				603,031
Total Energy				1,268,386
CONSUMER STAPLES 1.8%
Food Products 0.7%
American Italian Pasta
Co.*		2,401		103,843
JM Smucker Co		1,997		69,835
Sensient Technologies
Corp		3,405		68,168
Flowers Foods, Inc		1,797		49,220
Ralcorp Holdings, Inc.*	.	1,203		31,326
Farmer Bros. Co		100		30,704
Interstate Bakeries Corp.		2,800		29,400
J & J Snack Foods Corp.*		3		91
Total Food Products				382,587
Personal Products 0.4%
Del Laboratories, Inc.*	.	2,897		54,493
Revlon, Inc.*		18,812		51,921
NBTY, Inc.*		2,398		45,466

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT 35

MEKROS FUND

SCHEDULE OF INVESTMENTS (concluded) March 31, 2003

				MARKET
				VALUE
	SHARES			(NOTE 1)
Chattem, Inc.*		2,802	$	43,123
Nu Skin Enterprises, Inc.		2		20
Total Personal Products				195,023
Food & Drug Retailing 0.3%
Ruddick Corp		4,602		56,605
Seven-Eleven, Inc.*		6,008		41,816
Duane Reade, Inc.*		2,998		38,015
Weis Markets, Inc		696		21,304
Wild Oats Markets, Inc.*		2		18
Great Atlantic & Pacific Tea
Co.*		4		17
Pathmark Stores, Inc.*		1		7
Total Food & Drug Retailing				157,782
Beverages 0.2%
National Beverage Corp.*		3,604		50,348
Boston Beer, Inc.*		3,304		41,498
Robert Mondavi*		700		14,035
Total Beverages				105,881
Tobacco 0.1%
Schweitzer-Mauduit		2,297		51,682
Universal Corp. - Va		4		151
Total Tobacco				51,833
Household Products 0.1%
Wd 40 Co		1,397		34,646
Total Household Products				34,646
Total Consumer Staples				927,752
TELECOMMUNICATION SERVICES 1.1%
Diversified Telecommunication
Services 0.6%
Commonwealth Telephone
Entrp, Inc.*		2,001		77,679
Broadwing, Inc.*		18,613		74,452
Talk America Holdings,
Inc.*		9,405		68,177
Golden Telecom, Inc.*		2,599		38,725
Infonet Service Corp.*	.	24,811		31,758
Total Diversified
Telecommunication Services				290,791

				MARKET
				VALUE
	SHARES			(NOTE 1)
Wireless Telecommunication
Services 0.5%
EMS Technologies, Inc.*			8,605	$	120,126
At Road, Inc.*			8,801		59,495
Crown Castle
International Corp.*		.	6,803		37,416
Triton PCS Hldgs, Inc.*.			13,110		28,843
Nextel Partners, Inc.*			4,200		21,168
Total Wireless
Telecommunication Services					267,048
Total Telecommunication
Services					557,839
Total Common Stocks
(Cost $26,606,687)					27,250,663
			FACE
		AMOUNT
FEDERAL AGENCY DISCOUNT
NOTES 36.7%
Federal Farm Credit Bank
1.18% due 04/08/03	$	19,000,000			18,995,641
Total Federal Agency
Discount Notes
(Cost $18,995,641)					18,995,641
REPURCHASE AGREEMENTS 10.7%
Repurchase Agreement (Note 4)
1.29% due 04/01/03		1,848,406			1,848,406
1.25% due 04/01/03		1,848,406			1,848,406
1.20% due 04/01/03		1,848,406			1,848,406
Total Repurchase Agreements
(Cost $5,545,218)					5,545,218
Total Investments 100%
(Cost $51,147,546)			$		51,791,522

* Non-Income Producing Securities

See Notes to Financial Statements.

36

MEKROS FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

		UNREALIZED
		GAIN
	CONTRACTS	(NOTE 1)
FUTURES CONTRACTS PURCHASED
June 2003 Russell 2000 Futures Contracts
(Aggregate Market Value of Contracts $18,876,000)	104	$	221,222
	UNITS
EQUITY INDEX SWAP AGREEMENT
May 2003 Russell 2000 Index Swap, Maturing 05/16/03*
(Total Notional Value $22,796,964)	62,120	$	248,741

* Price Return based on Russell 2000 Index +/- financing at a variable rate.

See Notes to Financial Statements.

ANNUAL REPORT 37

U.S. GOVERNMENT BOND FUND

SCHEDULE OF INVESTMENTS March 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
U.S.TREASURY OBLIGATIONS 95.2%
U.S.Treasury Bond
5.38% due 02/15/31	$	47,223,000	$	51,196,374
Total U.S.Treasury Obligations
(Cost $48,348,925)			51,196,374
REPURCHASE AGREEMENTS 4.8%
Repurchase Agreement (Note 4)
1.29% due 04/01/03		865,456	865,456
1.25% due 04/01/03		865,456	865,456
1.20% due 04/01/03		865,456	865,456
Total Repurchase Agreements
(Cost $2,596,368)				2,596,368
Total Investments 100%
(Cost $50,945,293)			$	53,792,742

		UNREALIZED
		GAIN
	CONTRACTS	(NOTE 1)
FUTURES CONTRACTS PURCHASED
June 2003 U.S.Treasury Bond Futures Contracts
(Aggregate Market Value of Contracts $17,171,250)	152	$	175,026

38

LARGE-CAP EUROPE FUND

SCHEDULE OF INVESTMENTS March 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 100.0%
Fannie Mae
1.20% due 04/07/03	$	4,000,000	$	3,999,200
Total Federal Agency Discount Notes
(Cost $3,999,200)			3,999,200
Total Investments 100%
(Cost $3,999,200)			$	3,999,200

			UNREALIZED
			GAIN
	CONTRACTS		(NOTE 1)
FUTURES CONTRACTS PURCHASED
June 2003 Euro Currency Futures Contracts Purchased
(Aggregate Market Value of Contracts $271,700)	2	$	1,813
	UNITS
EQUITY INDEX SWAP AGREEMENT
April 2003 Dow Jones Europe STOXX 50 Index Swap, Maturing 04/09/03*
(Total Notional Value $8,497,224)	3,672	$	119,481

*Price Return based on Dow Jones Europe STOXX 50 Index +/- financing at a variable rate.

See Notes to Financial Statements.

ANNUAL REPORT 39

LARGE-CAP JAPAN FUND

SCHEDULE OF INVESTMENTS March 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 100.0%
Fannie Mae
1.19% due 04/07/03	$	2,000,000	$	1,999,633
Total Federal Agency Discount Notes
(Cost $1,999,633)			1,999,633
Total Investments 100%
(Cost $1,999,633)			$	1,999,633

				UNREALIZED
				LOSS
	CONTRACTS	(NOTE 1)
FUTURES CONTRACTS PURCHASED
June 2003 Nikkei 225 Futures Contracts
(Aggregate Market Value of Contracts $119,025)	3		$	(168	)
	UNITS
EQUITY INDEX SWAP AGREEMENT
April 2003 Topix 100 Index Swap, Maturing 04/09/03*
(Total Notional Value $3,453,029)	682,421	$	(43,837		)

*Price Return based on Topix 100 Index +/- financing at a variable rate.

See Notes to Financial Statements.

40

U.S. GOVERNMENT MONEY MARKET FUND

SCHEDULE OF INVESTMENTS March 31, 2003

		MARKET
	FACE	VALUE
	AMOUNT	(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 73.8%
Fannie Mae
1.27% due 04/21/03†	$25,000,000	$	24,982,361
1.23% due 04/29/03	25,000,000		24,976,083
1.22% due 05/28/03	25,000,000		24,951,708
1.24% due 07/02/03†	25,000,000		24,920,778
1.23% due 07/23/03	25,000,000		24,903,479
1.25% due 01/09/04	25,000,000		24,754,340
1.23% due 04/30/03†	20,000,000		19,980,183
1.24% due 06/02/03	20,000,000		19,957,289
1.23% due 04/16/03	15,000,000		14,992,313
1.33% due 12/12/03	3,500,000		3,467,027
Farmer Mac
1.23% due 04/03/03	25,000,000		24,998,292
1.22% due 04/30/03	25,000,000		24,975,431
1.22% due 05/02/03	25,000,000		24,973,736
1.18% due 06/27/03	25,000,000		24,928,708
1.24% due 04/04/03	15,000,000		14,998,450
1.20% due 04/10/03	10,000,000		9,997,000
Federal Farm Credit Bank
1.09% due 06/09/03	25,000,000		24,947,771
1.25% due 10/15/03†	25,000,000		24,828,993
1.16% due 04/09/03	10,000,000		9,997,422
Federal Home Loan Bank
1.21% due 04/02/03	50,000,000		49,998,319
1.15% due 04/10/03	50,000,000		49,985,625
1.17% due 04/17/03	50,000,000		49,974,000
1.20% due 04/02/03	25,000,000		24,999,167
1.23% due 04/02/03	25,000,000		24,999,149
1.14% due 04/04/03	25,000,000		24,997,625
1.15% due 04/09/03	25,000,000		24,993,611
1.22% due 04/09/03	25,000,000		24,993,222
1.15% due 04/11/03	25,000,000		24,992,014
1.22% due 04/11/03	25,000,000		24,991,528
1.21% due 04/16/03	25,000,000		24,987,396
1.22% due 04/23/03	25,000,000		24,981,361
1.22% due 04/25/03	25,000,000		24,979,667
1.21% due 05/07/03	25,000,000		24,969,750
1.22% due 05/16/03	25,000,000		24,961,875
1.22% due 06/04/03	25,000,000		24,945,778

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
Freddie Mac
1.23% due 04/17/03	50,000,000		49,972,667
1.21% due 04/01/03		25,000,000		25,000,000
1.22% due 04/01/03		25,000,000		25,000,000
1.15% due 04/08/03		25,000,000		24,994,410
1.22% due 04/08/03		25,000,000		24,994,070
1.22% due 04/10/03		25,000,000		24,992,375
1.22% due 05/22/03		25,000,000		24,956,792
1.22% due 05/29/03†		25,000,000		24,950,861
1.23% due 05/29/03†		25,000,000		24,950,458
1.23% due 11/07/03		25,000,000		24,812,847
1.23% due 12/15/03		25,000,000		24,779,625
1.31% due 12/31/03		20,000,000		19,800,589
1.22% due 05/15/03		15,000,000		14,977,633
Total Federal Agency Discount Notes
(Cost $1,201,463,778)		1,201,463,778
FEDERAL AGENCY BONDS 2.5%
Federal Home Loan Bank Bond
1.25% due 04/08/04		25,000,000		25,000,000
1.18% due 04/08/04		15,000,000		14,996,811
Total Federal Agency Bonds
(Cost $39,996,811)				39,996,811
TIME DEPOSITS 1.4%
EuroTime Deposits
1.31% due 04/01/03		22,000,000		22,000,000
Total Time Deposits
(Cost $22,000,000)				22,000,000
BANK NOTES 9.5%
World Bank Discount Note
1.15% due 04/07/03		25,000,000		24,995,208
1.20% due 04/11/03		25,000,000		24,991,667
1.22% due 04/11/03		25,000,000		24,991,528
1.15% due 04/14/03		25,000,000		24,989,618
1.14% due 05/06/03		25,000,000		24,972,291
1.21% due 04/03/03		15,000,000		14,998,992
1.23% due 04/03/03		15,000,000		14,998,975
Total Bank Notes
(Cost $154,938,279)
			154,938,279

† All or a portion of this security is on loan at March 31, 2003—See Note 10.

See Notes to Financial Statements.

ANNUAL REPORT 41

U.S. GOVERNMENT MONEY MARKET FUND

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
REPURCHASE AGREEMENTS 12.8%
Joint Repurchase Agreement (Note 4)
1.29% due 04/01/03	$	23,710,772	$	23,710,772
1.25% due 04/01/03		23,710,772		23,710,772
1.20% due 04/01/03		23,710,772		23,710,772
Individual Repurchase Agreement
Lehman Brothers, Inc. at 1.30% due 04/01/03	137,785,965		137,785,965
(Secured by U.S.Treasury Bills, at a rate of 0.0% and
maturing 05/15/03 and 09/11/03, as collateral, with a market
value of$140,544,040)
Total Repurchase Agreements
(Cost $208,918,281)		$	208,918,281
Total Investments 100%
(Cost $1,627,317,149)		$	1,627,317,149

See Notes to Financial Statements.

42

STATEMENTS OF ASSETS AND LIABILITIES

			Nova				Ursa
			Fund				Fund
ASSETS
Investments in Master Portfolio* (Note 3)	$	170,792,960			$529,062,491
Securities at Value** (Notes 1,2 and 4)				—			—
Investments of Securities Lending Collateral (Note 10)				—			—
Investment Income Receivable (Note 1)				—			—
Cash in Custodian Bank				—			—
Segregated Cash with Broker (Note 1)				—			—
Receivable for Securities Sold (Note 1)			6,234,657				—
Receivable for Shares Purchased			12,795,283			20,104,604
Receivable from Master Portfolio				899			978
Total Assets		189,823,799			549,168,073
LIABILITIES
Investment Advisory Fee Payable (Note 5)				—			—
Payable for Securities Purchased (Note 1)				—		1,278,016
Portfolio Accounting Fee Payable (Note 5)			12,596			40,663
Payable for Equity Index Swap Settlement (Note 1)				—			—
Payable for Futures Contracts Settlement (Note 1)				—			—
Payable upon Return of Securities Loaned (Note 10)				—			—
Liability for Shares Redeemed			18,975,567			18,637,042
Custody Fees Payable				—			—
Transfer Agent Fee Payable (Note 5)			31,489			129,812
Distribution and Service Fee Payable (Note 5)			24,161			47,797
Other Liabilities			71,484			209,170
Total Liabilities			19,115,297			20,342,500
NET ASSETS (NOTE 9)	$	170,708,502			$528,825,573
INVESTOR CLASS:
Net Assets	$	130,951,278			$471,599,611
Shares Outstanding			8,427,709			36,115,637
Net Asset Value Per Share			$	15.54		$	13.06
ADVISORCLASS:
Net Assets		$	27,129,855		$	39,686,234
Shares Outstanding			1,788,518			3,124,049
Net Asset Value Per Share			$	15.17		$	12.70
H CLASS:
Net Assets				N/A			N/A
Shares Outstanding
Net Asset Value Per Share
C CLASS:
Net Assets		$	12,627,369		$	17,539,728
Shares Outstanding			830,553			1,370,625
Net Asset Value Per Share			$	15.20		$	12.80

*	The cost of Investment in Master Portfolio is $173,565,549, $518,034,942, $0, $153,412,654, $0 and $0, respectively.
**	The cost of Securities atValue is $0, $0, $557,303,353,$ 0, $17,538,061 and $51,147,546, respectively.
See Notes to Financial Statements.

ANNUAL REPORT 43

March 31, 2003

		OTC					Arktos		Medius			Mekros
		Fund					Fund				Fund			Fund
	———–——				———–——				———–——			———–——
	$			—	$	149,146,848			$		—	$		—
		702,481,262						—		18,100,561			51,791,522
		283,037,211						—			—			—
			15,112					—		12,833			68,484
				—				—			—		3,330,000
			4,941,000					—		1,178,908			4,785,467
				—				—			—		5,809,277
			61,918,792			11,850,926				3,366,579			4,518,381
				—				433			—			—
——–––—–——					——–—–——				––——–——			–—–—–——
	1,052,393,377					160,998,207				22,658,881			70,303,131
——–––—–——					——–—–——				––——–——			–—–—–——
			331,819					—		12,253			26,185
			38,760,376				5,813,839				—			—
			36,457				13,495				1,361			2,909
				—				—		294,538			146,410
			1,619,550					—		64,375			437,956
		283,037,211						—			—			—
			22,037,697				5,986,162			2,019,850			24,018,351
			17,697					—			703			1,164
			110,606				33,737				3,404			7,274
			20,335					3,693			6,363		10,953
			252,722				58,608			11,812			21,232
——–––—–——					——–—–——				––——–——			–—–—–——
		346,224,470				11,909,534				2,414,659			24,672,434
——–––—–——					——–—–——				––——–——			–—–—–——
	$	706,168,907			$	149,088,673			$	20,244,222		$	45,630,697
——–––—–——					——–—–——				––——–——			–—–—–——
	$	653,999,281			$	146,415,915					N/A			N/A
			93,169,512				3,874,866
			$	7.02			$	37.79
		$	43,838,878					N/A			N/A			N/A
			6,397,369
			$	6.85
				N/A				N/A	$	14,633,748		$	32,101,057
										912,179			2,480,748
										$	16.04		$	12.94
		$	8,330,748			$	2,672,758		$	5,610,474		$	13,529,640
			1,213,860				72,401			353,957			1,061,388
			$	6.86			$	36.92		$	15.85		$	12.75

44

STATEMENTS OF ASSETS AND LIABILITIES (concluded)

			U.S.
	Government						Juno
	Bond Fund						Fund
ASSETS
Investments in Master Portfolio* (Note 3)	$		—	$	189,968,334
Securities at Value** (Notes 1, 2 and 4)		53,792,742					—
Investments of Securities Lending Collateral (Note 10)			—				—
Receivable for Futures Contracts Settlement (Note 1)		219,537					—
Investment Income Receivable (Note 1)		315,617					—
Cash in Custodian Bank			—				—
Segregated Cash with Broker (Note 1)		354,000					—
Receivable for Securities Sold (Note 1)		10,024,656				5,515,020
Receivable for Shares Purchased		3,935,123				4,049,929
Receivable from Master Portfolio			—				102
	–——––——			––——––——
Total Assets		68,641,675			199,533,385
	–——––——			––——––——
LIABILITIES
Investment Advisory Fee Payable (Note 5)		21,904					—
Portfolio Accounting Fee Payable (Note 5)			4,381			13,334
Payable for Equity Index Swap Settlement (Note 1)			—				—
Payable for Futures Contracts Settlement (Note 1)			—				—
Payable upon Return of Securities Loaned (Note 10)			—				—
Liability for Shares Redeemed		15,045,225				9,476,722
Dividends Payable			6,187				4
Custody Fees Payable			1,763				—
Transfer Agent Fee Payable (Note 5)			8,762			33,337
Distribution and Service Fee Payable (Note 5)			2,777			41,557
Other Liabilities		17,736				41,194
	–——––——			––——––——
Total Liabilities		15,108,735				9,606,148
	–——––——			––——––——
NET ASSETS (NOTE 9)	$	53,532,940		$	189,927,237
	–——––——			––——––——
INVESTOR CLASS:
Net Assets	$	51,369,528		$	128,957,782
Shares Outstanding		4,689,808				6,074,787
Net Asset Value Per Share		$	10.95			$	21.23
ADVISOR CLASS:
Net Assets			N/A				N/A
Shares Outstanding
Net Asset Value Per Share
H CLASS:
Net Assets			N/A				N/A
Shares Outstanding
Net Asset Value Per Share
C CLASS:
Net Assets	$	2,163,412			$	60,969,455
Shares Outstanding		197,140				2,920,593
Net Asset Value Per Share		$	10.97			$	20.88
INSTITUTIONAL CLASS
Net Assets			N/A				N/A
Shares Outstanding
Net Asset Value Per Share

*	The cost of Investment in Master Portfolio is $0, $189,342,362, $0, $0 and $0, respectively.
**	The cost of Securities atValue is $50,945,293, $0, $3,999,200, $1,999,633 and $1,627,317,149, respectively.
See Notes to Financial Statements.

ANNUAL REPORT 45

March 31, 2003

										U.S.
Large-Cap			Large-Cap			Government
Europe					Japan			Money
Fund					Fund	Market Fund
——––——			———–——				—–——–——
$		—	$		—	$				—
	3,999,200			1,999,633			1,627,317,149
		—			—			140,000,000
	2,925				—					—
		—			—				26,740
	896,015			248,075						44
	2,019,391			550,908						—
		—			—					—
	150,442			42,069				135,940,662
		—			—					—
———–——			——––——			–———–––——
	7,067,973			2,840,685			1,903,284,595
———–——			——––——			–———–––——
	4,794				4,325				678,716
		533			481				65,356
	57,191			43,154						—
		—			5,149					—
		—			—			140,000,000
	343,941			88,317					93,571,953
		—			—				36,886
		308			306				54,546
	1,332				1,201				263,196
	1,700				1,295				113,391
	2,939				4,576				558,424
———–——			——––——			–———–––——
	412,738			148,804				235,342,468
———–——			——––——			–———–––——
$	6,655,235		$	2,691,881		$	1,667,942,127
———–——			——––——			–———–––——
		N/A			N/A	$	1,218,675,732
							1,219,104,298
									$	1.00
		N/A			N/A		$	187,512,740
								187,768,459
									$	1.00
$	4,698,039		$	2,682,768						N/A
	475,341			422,155
	$	9.88		$	6.35
$	1,957,196			$	9,113		$	201,745,485
	200,992				1,441			201,744,979
	$	9.74		$	6.32				$	1.00
		N/A			N/A			$	60,008,170
									60,008,170
									$	1.00

46

STATEMENTS OF OPERATIONS

		Nova			Ursa
		Fund			Fund
		———–——		———–——
INVESTMENT INCOME
Interest (Note 1)	$	—		$	—
Interest from Securities Lending		—			—
Dividends, Net of Foreign Tax Withheld* (Note 1)		1,743,025			2,319,042
Other Income		—			—
	———–––——			————–——
Total Income		1,743,025			2,319,042
	———–––——			————–——
EXPENSES
Advisory Fees (Note 5)		—			—
Transfer Agent Fees (Note 5)		479,921			1,110,714
Distribution & Service Fees (Note 5):
Advisor Class		168,022			128,632
H Class		—			—
C Class		104,433			125,862
Audit and Outside Services		38,000			52,643
Accounting Fees (Note 5)		191,427			383,247
Registration Fees		91,209			153,025
Trustees' Fees		13,255			19,282
Custodian Fees		—			—
Printing Expenses		43,931			78,211
Miscellaneous		70,884			266,396
	———–––——			————–——
Total Expenses		1,201,082			2,318,012
	———–––——			————–——
Net Investment Income (Loss)		541,943			1,030
	———–––——			————–——
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities		(83,894,182	)	101,067,765
Equity Index Swaps		—			—
Futures Contract		—			—
	———–––——			————–——
Total Net Realized Gain (Loss)		(83,894,182	)	101,067,765
	———–––——			————–——
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(31,004,311	)	(35,596,840		)
Equity Index Swaps		—			—
Futures Contracts		—			—
	———–––——			————–——
Net Change in Unrealized Appreciation (Depreciation)		(31,004,311	)	(35,596,840		)
	———–––——			————–——
Net Gain (Loss) on Investments		(114,898,493	)		65,470,925
	———–––——			————–——
Net Increase (Decrease) in Net Assets from Operations	$	(114,356,550	)	$	65,471,955
	———–––——			————–——

* Net of foreign tax withheld of $0, $0, $1,253, $0, $0, and $674, respectively.

See Notes to Financial Statements.

ANNUAL REPORT 47

Year Ended March 31, 2003

		OTC				Arktos				Medius			Mekros
		Fund				Fund				Fund				Fund
	———–——				——––——				——–——				——––——
	$	215,712		$		—			$	289,718			$	417,134
		91,876				—				204				769
		713,796			28,000,000					244,679				464,513
		—				—				—				27
		——–—–——		———–——				——————				———–——
	1,021,384				28,000,000					534,601				882,443
		——–—–——		———–——				——————				———–——
	4,004,889					—				349,631				533,595
	1,335,851					379,917				97,202				148,344
		123,240				—				—				—
		—				—				88,093				123,648
		33,924				27,635				37,567				99,236
		139,157				21,001				9,433				13,913
		447,781				151,916				38,848				59,288
		300,871				57,330				20,852				31,470
		40,059				9,066				2,911				4,321
		216,835				—				16,785				24,641
		132,875				29,998				9,766				14,049
		148,745				77,132				10,253				17,768
——–—–——				———–——				——————				———–——
	6,924,227					753,995				681,341			1,070,273
——–—–——				———–——				——————				———–——
	(5,902,843		)		27,246,005				(146,740		)		(187,830		)
——–—–——				———–——				——————				———–——
	(129,162,666		)		(29,420,825		)		(8,205,696		)		(3,882,144		)
		—				—			(10,997,839		)		(17,516,051		)
	(6,152,926		)			—			(3,697,733		)		(8,769,732		)
——–—–——				———–——				——————				———–——
	(135,315,592		)		(29,420,825		)		(22,901,268		)		(30,167,927		)
——–—–——				———–——				——————				———–——
	(114,179,371		)		11,571,419				(2,308,995		)		(5,966,164		)
		—				—			(2,215,036		)		(3,788,403		)
	(993,601		)			—			(112,727		)			(92,474	)
——–—–——				———–——				——————				———–——
	(115,172,972		)		11,571,419				(4,636,758		)		(9,847,041		)
——–—–——				———–——				——————				———–——
	(250,488,564		)		(17,849,406		)		(27,538,026		)		(40,014,968		)
——–—–——				———–——				——————				———–——
$	(256,391,407		)		$	9,396,599		$	(27,684,766		)	$	(40,202,798		)

48

STATEMENTS OF OPERATIONS (concluded)

	U.S.
	Government			Juno
	Bond Fund			Fund
	———––——			——––——
INVESTMENT INCOME
Interest (Note 1)	$	2,583,011		$	—
Interest from Securities Lending		—			—
	–—————				–—————
Total Income		2,583,011			—
	–—————				–—————
EXPENSES
Advisory Fees (Note 5)		259,870			—
Transfer Agent Fees (Note 5)		103,996			190,896
Distribution & Service Fees (Note 5):
Advisor Class		—			—
H Class		—			—
C Class		14,139			136,625
Audit and Outside Services		6,662			6,480
Accounting Fees (Note 5)		51,974			76,345
Registration Fees		18,368			21,627
Trustees' Fees		3,183			3,374
Custodian Fees		20,972			—
Printing Expenses		10,873			10,727
Miscellaneous		28,751			51,757
	–—————				–—————
Total Expenses		518,788			497,831
	–—————				–—————
Less Institutional Class Expenses Reimbursed by Advisor (Note 5)		—			—
Less Expenses Waived by Servicer (Note 5)
C Class		—			—
Institutional Class		—			—
Less Expenses Waived by Distributors (Note 5)
Advisor Class		—			—
C Class		—			—
	–—————				–—————
Total Reimbursed/Waived Expenses		—			—
	–—————				–—————
Net Expenses		518,788			497,831
	–—————				–—————
Net Investment Income (Loss)		2,064,223			(497,831	)
	–—————				–—————
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities	(2,700,412		)		(9,220,393	)
Equity Index Swaps		—			—
Futures Contract		514,696			—
	–—————				–—————
Total Net Realized Loss	(2,185,716		)		(9,220,393	)
	–—————				–—————
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		2,824,507			(1,478,617	)
Equity Index Swaps		—			—
Futures Contracts		189,485			—
	–—————				–—————
Net Change in Unrealized Appreciation (Depreciation)		3,013,992			(1,478,617	)
	–—————				–—————
Net Gain (Loss) on Investments		828,276			(10,699,010	)
	–—————				–—————
Net Increase (Decrease) in Net Assets from Operations	$	2,892,499		$	(11,196,841	)
	–—————				–—————

* Net of foreign tax withheld of $0, $0, $0, $0 and $0, respectively.

See Notes to Financial Statements.

ANNUAL REPORT 49

Year Ended March 31, 2003

								U.S.
Large-Cap				Large-Cap				Government
Europe						Japan		Money
		Fund				Fund		Market Fund
——–——				——––——				——–—–——
	$	223,973			$	270,390		$	26,888,735
		—				—			38,304
——–———				———–——				–—————
		223,973				270,390			26,927,039
——–———				———–——				–—————
		130,445				149,901			8,267,843
		36,248				41,678			3,303,268
		—				—			1,594,428
		35,341				41,394			—
		3,732				966			1,397,364
		1,810				3,576			257,865
		14,494				16,656			830,951
		7,590				8,099			662,692
		802				1,157			103,991
		5,940				6,901			666,834
		2,803				4,165			344,809
		6,674				6,534			752,965
——–———				———–——				–—————
		245,879				281,027			18,183,010
——–———				———–——				–—————
		—				—			(22,410	)
		—				—			(136,420	)
		—				—			(57,130	)
		—				—			(123,335	)
		—				—			(436,924	)
——–———				———–——				–—————
		—				—			(776,219	)
——–———				———–——				–—————
		245,879				281,027			17,406,791
——–———				———–——				–—————
		(21,906	)			(10,637	)		9,520,248
——–———				———–——				–—————
		—				(16	)		—
	(8,350,417		)		(8,830,702		)		—
		88,650			(363,404		)
——–———				———–——				–—————
	(8,261,767		)		(9,194,122		)		—
——–———				———–——				–—————
		—				—			—
		179,829			1,561,284				—
		1,813				(8,917	)		—
——–———				———–——				–—————
		181,642			1,552,367				—
——–———				———–——				–—————
	(8,080,125		)		(7,641,755		)		—
——–———				———–——				–—————
$	(8,102,031		)	$	(7,652,392		)	$	9,520,248
——–———				———–——					——–———

50

STATEMENTS OF CHANGES IN NET ASSETS

		Nova Fund
		—––——––—––––——————
		Year			Year
		Ended			Ended
		March 31,			March 31,
		2003			2002
	—–––––————				—––––——––
FROM OPERATIONS
Net Investment Income (Loss)	$	541,943		$	1,017,910
Net Realized Gain (Loss) on Investments, Swaps and Futures		(83,894,182	)		(53,150,916	)
Net Change in Unrealized Appreciation
(Depreciation) of Investments, Swaps and Futures		(31,004,311	)		28,231,722
	–––––—–———			—––—–———
Net Increase (Decrease) in Net Assets from Operations		(114,356,550	)		(23,901,284	)
	–––––—–———			—––—–———
Distributions to Shareholders from: (Note 1)
Net Investment Income:
Investor Class		—			(1,144,021	)
Advisor Class		—			(170,559	)
H Class		—			—
C Class		—			(16,765	)
	–––––—–———			—–––————
Total Distributions to Shareholders		—			(1,331,345	)
	–––––—–———			—––—–———
Net Increase (Decrease) in Net Assets
From Share Transactions (Note 8)		(6,916,336	)		27,585,708
	–––––—–———			—––—–———
Net Increase (Decrease) in Net Assets		(121,272,886	)		2,353,079
Net Assets—Beginning of Year		291,981,388			289,628,309
	–––––—–———			—––—–———
Net Assets—End of Year	$	170,708,502		$	291,981,388
	–––––—–———			—–––————

See Notes to Financial Statements.

ANNUAL REPORT 51

	Ursa Fund							OTC Fund					Arktos Fund
	—––———––––					—––———––––––——————							—––———––––——————
Year			Year					Year		Year			Year			Year
Ended			Ended					Ended		Ended			Ended			Ended
March 31,			March 31,					March 31,		March 31,			March 31,			March 31,
2003			2002					2003		2002			2003			2002
—–––––————				—–––———		—––––————					—––—–——		–––––————				—–––———
$	1,030		$	3,650,412			$	(5,902,843	)	$	(10,044,557	)	$	27,246,005		$	2,748,558
	101,067,765			(3,641,990	)		(135,315,592		)		(260,987,021	)		(29,420,825	)		20,083,580
	(35,596,840	)		(6,096,721	)		(115,172,972		)		163,236,450			11,571,419			(32,701,973	)
—––————			—–––————			–—––————				—––—–————			—––————			—––————
	65,471,955			(6,088,299	)		(256,391,407		)		(107,795,128	)		9,396,599			(9,869,835	)
—––————			—–––————			–—––————				—––—–————			—––————			—––————
	(2,899,882	)		(858,957	)			—			—			(4,795,888	)		(821,586	)
	(132,734	)		(33,858	)			—			—			—			—
	—			—				—			—			—			—
	(72,651	)		(1,704	)			—			—			(79,729	)		(3,414	)
—––————			—–––————			–—––————				—––—–————			—––————			—––————
	(3,105,267	)		(894,519	)			—			—			(4,875,617	)		(825,000	)
—––————			—–––————			–—––————				—––—–————			—––————			—––————
	237,917,856			9,690,096				154,541,514			(164,901,895	)		28,667,412			47,545,098
—––————			—–––————			–—––————				—––—–————			—––————			—––————
	300,284,544			2,707,278			(101,849,893		)		(272,697,023	)		33,188,394			36,850,263
	228,541,029			225,833,751				808,018,800			1,080,715,823			115,900,279			79,050,016
—––————			—–––————			–—––————				—––—–————			—––————			—––————
$	528,825,573		$	228,541,029		$		706,168,907		$	808,018,800		$	149,088,673		$	115,900,279
—––————			—–––————			––––––————				—––—–————			—––————			—––————

52

STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Medius Fund
	—––——––—––––——————
	Year			Period
	Ended			Ended
	March 31,			March 31,
	2003			2002*
	—–––––————			—––––——––
FROM OPERATIONS
Net Investment Income (Loss)	$	(146,740	)	$	(32,304	)
Net Realized Loss on Investments, Swaps and Futures		(22,901,268	)		(361,074	)
Net Change in Unrealized Appreciation
(Depreciation) of Investments, Swaps and Futures		(4,636,758	)		5,314,265
	—––—–———			—––—–———
Net Increase (Decrease) in Net Assets from Operations		(27,684,766	)		4,920,887
	—––—–———			—––—–———
Distributions to Shareholders from: (Note 1)
Net Investment Income:
Investor Class		—			—
Advisor Class		—			—
H Class		(171,769	)		—
C Class		(19,802	)		—
Realized Gain on Investments:
Investor Class		—			—
Advisor Class		—			—
H Class		—			—
C Class		—			—
	—––—–———			—––—–———
Total Distributions to Shareholders		(191,571	)		—
	—––—–———			—––—–———
Net Increase (Decrease) in Net Assets
From Share Transactions (Note 8)		(69,789,373	)		112,989,045
	—––—–———			—––—–———
Net Increase (Decrease) in Net Assets		(97,665,710	)		117,909,932
Net Assets—Beginning of Period		117,909,932			—
	—––—–———			—––—–———
Net Assets—End of Period	$	20,244,222		$	117,909,932
	—––—–———			—––—–———

* Since the commencement of operations:August 16, 2001—Medius Fund.

See Notes to Financial Statements.

ANNUAL REPORT 53

Mekros Fund						U.S. Government Bond Fund						Juno Fund
—––———––––——————						—––———––––––——————						—––———––––——————
Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended
March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
2003			2002			2003			2002			2003			2002
—–––––————				—–––———		—––––————				—––—–——		—–––––————			—–––———
$	(187,830	)	$	483,088		$	2,064,223		$	1,791,020		$	(497,831	)	$	183,441
	(30,167,927	)		(11,288,079	)		(2,185,716	)		(4,631,481	)		(9,220,393	)		(475,204	)
	(9,847,041	)		10,827,276			3,013,992			1,230,447			(1,478,617	)		1,912,797
	—––————		—–––————			—––————			—––————			—––————			—–————
	(40,202,798	)		22,285			2,892,499			(1,610,014	)		(11,196,841	)		1,621,034
	—––————		—–––————			—––————			—––————			—––————			—–————
	—			—			(2,023,746	)		(1,782,170	)		(59,275	)		—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			(40,477	)		(8,851	)		(10,152	)		—
	—			—			—			—			—			—
	—			—			—			—			—			—
	(173,942	)		—			—			—			—			—
	(9,606	)		—			—			—			—			—
	—––————		—–––————			—––————			—––————			—––————			—–————
	(183,548	)		—			(2,064,223	)		(1,791,021	)		(69,427	)		—
	—––————		—–––————			—––————			—––————			—––————			—–————
	(54,632,052	)		103,920,662			38,357,887			(62,937,741	)		168,023,827			19,101,527
	—––————		—–––————			—––————			—––————			—––————			—–————
	(95,018,398	)		103,942,947			39,186,163			(66,338,776	)		156,757,559			20,722,561
	140,649,095			36,706,148			14,346,777			80,685,553			33,169,678			12,447,117
	—––————		—–––————			—––————			—––————			—––————			—–————
$	45,630,697		$	140,649,095		$	53,532,940		$	14,346,777		$	189,927,237		$	33,169,678
	—––————		—–––————			—––————			—––————			—––————			—–————

54

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Large-Cap
	Europe Fund
	—––———––––——————
	Year			Year
	Ended			Ended
	March 31,			March 31,
	2003			2002
	——––––———			—————
FROM OPERATIONS
Net Investment Income (Loss)	$	(21,906	)	$	137,609
Net Realized Gain (Loss) on Investments		(8,261,767	)		(3,303,917	)
Net Change in Unrealized Appreciation
(Depreciation) of Investments		181,642			418,905
	—–—–——––			—–—––——––
Net Increase (Decrease) in Net Assets from Operations		(8,102,031	)		(2,747,403	)
	—–—–——––			—–—––——––
Distributions to Shareholders from: (Note 1)
Net Investment Income:
Investor Class		—			—
Advisor Class		—			—
H Class		—			—
C Class		—			—
Institutional Class		—			—
	—–—–——––			—–—––——––
Total Distributions to Shareholders		—			—
	—–—–——––			—–—––——––
Net Increase (Decrease) in Net Assets
From Share Transactions (Note 8)		4,944,471			2,583,073
	—–—–——––			—–—––——––
Net Increase (Decrease) in Net Assets		(3,157,560	)		(164,330	)
Net Assets—Beginning of Year		9,812,795			9,977,125
	—–—–——––			—–—––——––
Net Assets—End of Year	$	6,655,235		$	9,812,795
	—–—–——––			—–—––——––

See Notes to Financial Statements.

ANNUAL REPORT 55

	Large-Cap					U.S. Government
	Japan Fund					Money Market Fund
	—––———––––—————						—––———––––——————
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	March 31,			March 31,			March 31,			March 31,
	2003			2002			2003			2002
—––––————				—————			—––––————			—————
$	(10,637	)	$	148,170		$	9,520,248		$	28,462,273
	(9,194,122	)		(2,608,524	)		—			14,613
	1,552,367			(910,206	)		—			—
—––––———			—–––———			—––—–————			—––—–————
	(7,652,392	)		(3,370,560	)		9,520,248			28,476,886
—––––———			—–––———			—––—–————			—––—–————
	—			—			(8,203,812	)		(20,280,653	)
	—			—			(1,050,597	)		(7,692,830	)
	—			—			—			—
	—			—			(82,113	)		(488,790	)
	—			—			(183,726	)		—
—––––———			—–––———			—––—–————			—––—–————
	—			—			(9,520,248	)		(28,462,273	)
—––––———			—–––———			—––—–————			—––—–————
	(13,540,916	)		12,649,533			269,232,701			(38,890,149	)
—––––———			—–––———			—––—–————			—––—–————
	(21,193,308	)		9,278,973			269,232,701			(38,875,536	)
	23,885,189			14,606,216			1,398,709,426			1,437,584,962
—––––———			—–––———			—––—–————			—––—–————
$	2,691,881		$	23,885,189		$	1,667,942,127		$	1,398,709,426
—––––———			—–––———			—––—–————			—––—–————

56

FINANCIAL HIGHLIGHTS

			Investor Class
	—––––––––––––––––––––––————
			Nova Fund
	—––––––––––––––––––––––————
			Year				Year
			Ended		Ended
	March 31,				March 31,
			2003				2002
	———–——				—–————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Year		$	25.56			$	26.85
	—————				—————
Net Investment Income†			.08				.12
Net Realized and Unrealized Gains
(Losses) on Securities		(10.10		)			(1.28	)
	—————				—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations		(10.02		)			(1.16	)
Distributions to Shareholders from:
Net Investment Income			—				(.13	)
	—————				—————
Net Increase (Decrease) in Net Asset Value		(10.02		)			(1.29	)
	—————				—————
Net Asset Value—End of Year		$	15.54			$	25.56
Total Investment Return	(39.20			)%		(4.36		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.27			%††	1.16			%††
Net Expenses	1.27			%††	1.16			%††
Net Investment Income		0.44		%		0.44		%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*			603	%			401	%
Net Assets, End of Year (000’s omitted)	$		130,951		$	222,251

†	Calculated using the average daily shares outstanding for the year.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT 57

				Investor Class
———————————––––––––––––––—––––––––––––
				Nova Fund
———————————––––––––––––––—––––––––––––
		Year		Year			Year
Ended				Ended			Ended
March 31,				March 31,			March 31,
		2001		2000			1999
——––––—				——–——			——–——
	$	41.93		$	34.87		$	29.82
—————				—————			—————
		.33			.47			.45
	(15.41		)		6.60			5.01
—————				—————			—————
	(15.08		)		7.07			5.46
		—			(.01	)		(.41	)
—————				—————			—————
	(15.08		)		7.06			5.05
—————				—————			—————
	$	26.85		$	41.93		$	34.87
(35.96			)%	20.29		%	18.54		%
	1.34		%	1.18		%	1.19		%
	1.33		%	1.18		%	1.19		%
	0.89		%	1.26		%	1.47		%
		117	%		311	%		445	%
$	251,333			$	748,147		$	655,275

58

FINANCIAL HIGHLIGHTS (continued)

	Investor Class
	—––––––––––––———————
	Ursa Fund
	—––––––––––––———————
	Year					Year
	Ended			Ended
	March 31,			March 31,
	2003					2002
	——––——			—–—–——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Year	$	10.45			$	10.43
	—————			—————
Net Investment Income†		.01				.16
Net Realized and Unrealized Gains
(Losses) on Securities		2.67				(.10	)
	—————			—————
Net Increase (Decrease) in Net Asset Value
Resulting from Operations		2.68				.06
Distributions to Shareholders from:
Net Investment Income		(.07	)			(.04	)
	—————			—————
Net Increase (Decrease) in Net Asset Value		2.61				.02
	—————			—————
Net Asset Value—End of Year	$	13.06			$	10.45
Total Investment Return	25.65		%		0.60		%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.41		%††	1.31			%††
Net Expenses	1.41		%††	1.31			%††
Net Investment Income	0.06		%		1.56		%
SUPPLEMENTARY DATA:
Net Assets, End of Year (000’s omitted)	$	471,600		$	214,498

†	Calculated using the average daily shares outstanding for the year.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
See Notes to Financial Statements.

ANNUAL REPORT 59

			Investor Class
	–––––––––––––—––––––––––––
			Ursa Fund
	–––––––––––––—––––––––––––
Year					Year				Year
Ended			Ended				Ended
March 31,			March 31,				March 31,
2001					2000				1999
——––––—			——–——				——–——
$	7.68			$	8.66			$	9.92
—————			—————				—————
	.40				.32				.25
	2.41			(1.24		)		(1.48		)
—————			—————				—————
	2.81				(.92	)		(1.23		)
	(.06	)			(.06	)			(.03	)
—————			—————				—————
	2.75				(.98	)		(1.26		)
—————			—————				—————
$	10.43			$	7.68			$	8.66
36.68		%	(10.64			)%	(12.47			)%
1.37		%††		1.32		%		1.39		%
1.37		%††		1.31		%		1.38		%
4.69		%		3.81		%		3.29		%
$	222,939		$	288,218			$	482,340

60

FINANCIAL HIGHLIGHTS (continued)

			Investor Class
	—––––––––––––––––––––––—
			OTC Fund
	—––––––––––––––––––––––—
			Year				Year
			Ended		Ended
	March 31,				March 31,
			2003				2002
	——–——				—–———
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Year		$	10.16			$	11.19
	—————				—————
Net Investment Loss†			(.08	)			(.11	)
Net Realized and Unrealized Gains (Losses)
on Securities			(3.06	)			(.92	)
	—————				—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations			(3.14	)			(1.03	)
Distributions to Shareholders from:
Net Realized Capital Gains			—				—
	—————				—————
Net Increase (Decrease) in Net Asset Value			(3.14	)			(1.03	)
	—————				—————
Net Asset Value—End of Year		$	7.02			$	10.16
Total Investment Return	(30.91			)%		(9.20		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses		1.27		%		1.08		%
Net Expenses		1.27		%		1.08		%
Net Investment Loss		(1.08		)%		(0.96		)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*			180	%			109	%
Net Assets, End of Year (000’s omitted)	$	653,999			$	783,637

†	Calculated using the average daily shares outstanding for the year.
††	Per share amounts for the year ended March 31, 1999 and March 31, 2000 have been restated to reflect a 3:1 stock split effective April 14, 2000.
*	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT 61

				Investor Class
		———––––––––––––––—–––––––––––––––
				OTC Fund
		———––––––––––––––—–––––––––––––––
		Year				Year				Year
Ended				Ended				Ended
March 31,				March 31,				March 31,
		2001		2000††				1999††
——––——				———–——				——–——–——
	$	32.40			$	15.90			$	9.23
—————				—————				—————
		(.24	)			(.22	)			(.12	)
	(20.80		)			16.88				6.88
—————				—————				—————
	(21.04		)			16.66				6.76
		(.17	)			(.16	)			(.09	)
—————				—————				—————
	(21.21		)			16.50				6.67
—————				—————				—————
	$	11.19			$	32.40			$	15.90
	(65.19		)%		105.32		%		73.73		%
	1.16		%		1.15		%		1.15		%
	1.16		%		1.15		%		1.15		%
	(1.01		)%		(1.01		)%		(0.97		)%
		228	%			385	%			773	%
$	1,043,848			$	3,762,540			$	1,277,571

62

FINANCIAL HIGHLIGHTS (continued)

	Investor Class
	—––––––––––––––––––––––––——
	Arktos Fund
	—––––––––––––––––––––––––——
	Year					Year
	Ended			Ended
	March 31,			March 31,
	2003					2002
	———–——			—–————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	32.29			$	35.76
	—————			—————
Net Investment Income†		7.34				1.01
Net Realized and Unrealized Gains (Losses)
on Securities		(.70	)			(4.19	)
	—————			—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations		6.64				(3.18	)
Distributions to Shareholders from:
Net Investment Income		(1.14	)			(.29	)
	—————			—————
Net Increase (Decrease) in Net Asset Value		5.50				(3.47	)
	—————			—————
Net Asset Value—End of Period	$	37.79			$	32.29
Total Investment Return	20.39		%		(8.84		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.42		%†††	1.35†			%†††
Net Expenses	1.42		%†††	1.35			%†††
Net Investment Income	18.11		%		3.16		%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***		—				—
Net Assets, End of Period (000’s omitted)	$	146,416		$	113,904

†	Calculated using the average daily shares outstanding for the year.
††	Per share amounts for the periods ended March 31, 1999 and March 31, 2000 have been restated to reflect a 1:5 reverse stock split effective April 14, 2000.
†††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Commencement of Operations: September 3, 1998
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
For periods after March 31, 2000, portfolio turnover is calculated only for the Arktos Master Portfolio.
See Notes to Financial Statements.

ANNUAL REPORT 63

			Investor Class
	———––––––––––––––—––––––––––
			Arktos Fund
	———––––––––––––––—––––––––––
Year			Year			Period
Ended			Ended			Ended
March 31,			March 31,			March 31,
2001			2000††			1999††*
——––––—			——–——			——–——
$	17.45		$	40.20		$	75.00
—————			—————			—————
	1.08			.75			.65
	17.23		(23.40		)	(35.40		)
—————			—————			—————
	18.31		(22.65		)	(34.75		)
	—			(.10	)		(.05	)
—————			—————			—————
	18.31		(22.75		)	(34.80		)
—————			—————			—————
$	35.76		$	17.45		$	40.20
104.93		%	(56.39		)%	(46.35		)%
1.34		%†††	1.46		%	1.38		%**
1.33		%†††	1.46		%	1.37		%**
6.27		%	2.67		%	2.20		%**
1,788		%	1,157		%	1,332		%
$	79,028		$	103,160		$	118,622

64

FINANCIAL HIGHLIGHTS (continued)

			Investor Class
	—––––––––––––––––––——————
			U.S. Government Bond Fund
	—––––––––––––––––––——————
			Year				Year
			Ended		Ended
	March 31,				March 31,
			2003				2002
	———–——				———–——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Year		$	9.12			$	9.82
	—————				—————
Net Investment Income†			.41				.43
Net Realized and Unrealized Gains
(Losses) on Securities			1.83				(.70	)
	—————				—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations			2.24				(.27	)
Distributions to Shareholders from:
Net Investment Income			(.41	)			(.43	)
Net Realized Capital Gain			—				—
	—————				—————
Net Increase (Decrease) in Net Asset Value			1.83				(.70	)
	—————				—————
Net Asset Value—End of Year		$	10.95			$	9.12
Total Investment Return		24.93		%	(2.88			)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses		0.97		%		0.88		%
Net Expenses		0.97		%		0.88		%
Net Investment Income		4.00		%		4.39		%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate*		2,404		%		860		%
Net Assets, End of Year (000’s omitted)	$	51,370			$	14,138

†	Calculated using the average daily shares outstanding for the year.
*	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT 65

		Investor Class
		———––––––––––––––—––––––––––
		U.S. Government Bond Fund
		———––––––––––––––—––––––––––
		Year		Year			Year
Ended				Ended			Ended
March 31,				March 31,			March 31,
		2001		2000			1999
———–——				———–——			———–——
	$	9.34		$	10.05		$	10.04
—————				—————			—————
		.42			.46			.42
		.48			(.71	)		.02
—————				—————			—————
		.90			(.25	)		.44
		(.42	)		(.46	)		(.42	)
		—			—			(.01	)
—————				—————			—————
		.48			(.71	)		.01
—————				—————			—————
	$	9.82		$	9.34		$	10.05
—————				—————			—————
	9.81		%	(2.26		)%	4.24		%
	0.97		%	0.93		%	0.97		%
	0.96		%	0.92		%	0.96		%
	4.38		%	5.01		%	3.88		%
	1,107		%		890	%	1,339		%
$	80,686			$	28,105		$	27,623

66

FINANCIAL HIGHLIGHTS (continued)

	Investor Class
	—––––––––––––––––––––––—
	Juno Fund
	—––––––––––––––––––––––—
	Year			Year
	Ended			Ended
	March 31,			March 31,
	2003			2002*
	——––——			——––——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Year	$	26.40		$	25.59
	—————			—————
Net Investment Income (Loss)†		(.04	)		.27
Net Realized and Unrealized Gains (Losses)
on Securities		(5.13	)		.54
	—————			—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations		(5.17	)		.81
Distributions to Shareholders from:
Net Investment Income		—			—
	—————			—————
Net Increase (Decrease) in Net Asset Value		(5.17	)		.81
	—————			—————
Net Asset Value—End of Year	$	21.23		$	26.40
Total Investment Return	(19.53		)%		3.17	%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses		1.41	%††	1.41		%††
Net Expenses		1.41	%††	1.41		%††
Net Investment Income (Loss)		(0.45	)%		1.12	%
SUPPLEMENTARY DATA:
Net Assets, End of Year (000’s omitted)	$	128,958		$	32,293

†	Calculated using the average daily shares outstanding for the year.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Per share amounts for the years ended March 31, 1999 through March 31, 2002 have been restated to reflect a 1:3 reverse stock split
	effective February 10, 2003.
See Notes to Financial Statements.

ANNUAL REPORT 67

			Investor Class
	———––––––––––––––—–––––––––––––
			Juno Fund
	———––––––––––––––—–––––––––––––
Year					Year		Year
Ended					Ended		Ended
March 31,			March 31,				March 31,
2001*					2000*		1999*
——––——			——––——				——––——
$	27.00		$		26.10		$	25.95
—————			—————				—————
	1.23				.93			.81
	(2.64	)			.12			(.60	)
—————			—————				—————
	(1.41	)			1.05			.21
	—				(.15	)		(.06	)
—————			—————				—————
	(1.41	)			.90			.15
—————			—————				—————
$	25.59		$		27.00		$	26.10
(5.22		)%			3.97	%		0.78	%
1.33		%††			1.47	%		1.57	%
1.33		%††			1.47	%		1.56	%
	4.61	%			3.39	%		3.25	%
$	10,745			$	9,941		$	12,789

68

FINANCIAL HIGHLIGHTS (continued)

	Investor Class
	—––––––––––––––––––––––————
	U.S.Government
	Money Market Fund
	—––––––––––––––––––––––————
			Year				Year
	Ended				Ended
	March 31,				March 31,
			2003				2002
	———–——				———–——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Year		$	1.00			$	1.00
	—————				—————
Net Investment Income†			.01				.02
	—————				—————
Net Increase in Net Asset Value Resulting
from Operations			.01				.02
Distributions to Shareholders from:
Net Investment Income			(.01	)			(.02	)
	—————				—————
Net Increase in Net Asset Value			—				—
	—————				—————
Net Asset Value—End of Year		$	1.00			$	1.00
Net Investment Income		0.71		%		2.35		%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses		0.92		%		0.85		%
Net Expenses		0.92		%		0.85		%
Net Investment Income		0.71		%		2.23		%
SUPPLEMENTARY DATA:
Net Assets, End of Year (000’s omitted)		$1,218,676				$979,433

† Calculated using the average daily shares outstanding for the year.

See Notes to Financial Statements.

ANNUAL REPORT

69

		Investor Class
———————————––––––––––––––—––––––––––––
		U.S. Government
		Money Market Fund
———————————––––––––––––––—––––––––––––
		Year				Year				Year
Ended				Ended				Ended
March 31,				March 31,				March 31,
		2001				2000				1999
———–——				———–——				———–——
	$	1.00			$	1.00			$	1.00
—————				—————				—————
		.05				.04				.04
———–——				———–——				———–——
		.05				.04				.04
		(.05	)			(.04	)			(.04	)
———–——				———–——				———–——
		—				—				—
———–——				———–——				———–——
	$	1.00			$	1.00			$	1.00
	5.48		%		4.48		%		4.55		%
	0.85		%		0.89		%		0.84		%
	0.85		%		0.88		%		0.83		%
	5.38		%		4.36		%		4.37		%
	$948,275				$686,198				$949,802

70

FINANCIAL HIGHLIGHTS (continued)

			Advisor Class
	—–––––––––––––———————
			Nova Fund
	—–––––––––––––———————
			Year				Year
	Ended				Ended
	March 31,				March 31,
			2003				2002
	——––——				——––——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period		$	25.11			$	26.52
	——––——				——––——
Net Investment Income (Loss)†			(.03	)			(.01	)
Net Realized and Unrealized Gains
(Losses) on Securities			(9.91	)			(1.27	)
	—————				—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations			(9.94	)			(1.28	)
Distributions to Shareholders from:
Net Investment Income			—				(.13	)
In Excess of Net Investment Income			—				—
	—————				—————
Net Increase (Decrease) in Net Asset Value			(9.94	)			(1.41	)
	—————				—————
Net Asset Value—End of Period		$	15.17			$	25.11
Total Investment Return	(39.59			)%	(4.87			)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.77			%††	1.55			%††
Net Expenses	1.77			%††	1.55			%††
Net Investment Income (Loss)	(0.17			)%	(0.02			)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***			603	%			401	%
Net Assets, End of Period (000’s omitted)	$	27,130			$	59,375

†	Calculated using the average daily shares outstanding for the year.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Since the commencement of operations: October 15, 1998.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

71

				Advisor Class
—––––––––––––––––––––––———––————————
				Nova Fund
—––––––––––––––––––––––———––————————
		Year		Year			Period
Ended				Ended			Ended
March 31,				March 31,			March 31,
		2001		2000			1999*
——––——				——––——			——––——
	$	41.63		$	34.78		$	26.91
—————				—————			—————
		.16			.31			(.11	)
	(15.27		)		6.55			8.39
—————				—————			—————
	(15.11		)		6.86			8.28
		—			(.01	)		—
		—			—			(.41	)
—————				—————			—————
	(15.11		)		6.85			7.87
—————				—————			—————
	$	26.52		$	41.63		$	34.78
(36.30			)%	19.74		%	31.03		%
	1.87		%	1.71		%	1.60		%**
	1.87		%	1.70		%	1.58		%**
	0.45		%	0.87		%	(0.70		)%**
		117	%		311	%		445	%
	$38,184				$113,248			$36,187

72

FINANCIAL HIGHLIGHTS (continued)

			Advisor Class
	——————————————
			Ursa Fund
	——————————————
			Year		Year
	Ended				Ended
	March 31,				March 31,
			2003		2002
	———–——				———–——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period		$	10.22		$	10.26
	—————				—————
Net Investment Income (Loss)†			(.06	)		.09
Net Realized and Unrealized Gains
(Losses) on Securities			2.61			(.09	)
	—————				—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations			2.55			—
Distributions to Shareholders from:
Net Investment Income			(.07	)		(.04	)
	—————				—————
Net Increase (Decrease) in Net Asset Value			2.48			(.04	)
	—————				—————
Net Asset Value—End of Period		$	12.70		$	10.22
Total Investment Return		24.95		%	0.02		%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.89			%††	1.85		%††
Net Expenses	1.89			%††	1.85		%††
Net Investment Income (Loss)	(0.45			)%	0.87		%
SUPPLEMENTARYDATA:
Net Assets, End of Period (000’s omitted)		$39,686				$7,036

†	Calculated using the average daily shares outstanding for the year.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Since the commencement of operations:August 5, 1998.
**	Annualized
See Notes to Financial Statements.

ANNUAL REPORT

73

Advisor Class
—––––––––––––––––––––––———––————————
Ursa Fund
—––––––––––––––––––––––———––————————
Year			Year			Period
Ended			Ended			Ended
March 31,			March 31,			March 31,
2001			2000			1999*
———–——			———–——			———–——
$	7.61		$	8.62		$	10.25
———–——			———–——			———–——
	.43			.30			.21
	2.28		(1.25		)		(1.81	)
———–——			———–——			———–——
	2.71			(.95	)		(1.60	)
	(.06	)		(.06	)		(.03	)
———–——			———–——			———–——
	2.65		(1.01		)		(1.63	)
———–——			———–——			———–——
$	10.26		$	7.61		$	8.62
35.70		%	(11.03		)%	(15.68		)%
1.86		%††	1.84		%	1.86		%**
1.86		%††	1.83		%	1.85		%**
4.92		%	3.51		%	2.96		%**
$	2,860		$	4,553		$	3,073

74

FINANCIAL HIGHLIGHTS (continued)

			Advisor Class
	———————————————
			OTC Fund
	———————————————
			Year				Year
	Ended				Ended
	March 31,				March 31,
			2003				2002
	——––——				——––——
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period		$	9.97			$	11.04
	—————				—————
Net Investment Loss†			(.11	)			(.16	)
Net Realized and Unrealized Gains (Losses)
on Securities		(3.01		)			(.91	)
	—————				—————
Net Increase (Decrease) in Net Asset
Value Resulting from Operations		(3.12		)			(1.07	)
Distributions to Shareholders from:
Net Realized Capital Gains			—				—
	—————				—————
Net Increase (Decrease) in Net Asset Value		(3.12		)			(1.07	)
	—————				—————
Net Asset Value—End of Period		$	6.85			$	9.97
Total Investment Return	(31.29			)%	(9.69			)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses		1.76		%		1.60		%
Net Expenses		1.76		%		1.60		%
Net Investment Loss	(1.56			)%	(1.47			)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***		180		%			109	%
Net Assets, End of Period (000’s omitted)		$43,839				$20,837

†	Calculated using the average daily shares outstanding for the year.
††	Per share amounts for the years ended March 31, 1999 and March 31, 2000 have been restated to reflect a 3:1 stock split effective April 14, 2000.
*	Since the commencement of operations: September 22, 1998.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

75

Advisor Class
—––––––––––––––––––––––———––————————
OTC Fund
—––––––––––––––––––––––———––————————
Year					Year		Period
Ended			Ended				Ended
March 31,			March 31,				March 31,
2001			2000††				1999††*
——––——			——––——				——––——
$	32.16			$	15.86		$	10.17
—————			—————				—————
	(.35	)			(.33	)		(.10	)
(20.60		)			16.78			5.88
—————			—————				—————
(20.95		)			16.45			5.78
	(.17	)			(.15	)		(.09	)
—————			—————				—————
(21.12		)			16.30			5.69
—————			—————				—————
$	11.04			$	32.16		$	15.86
(65.40		)%	104.26			%	57.20		%
1.67		%		1.62		%	1.49		%**
1.66		%		1.61		%	1.47		%**
(1.50		)%		(1.47		)%	(1.31%)**
	228	%			385	%		773	%
$	36,836		$	113,948			$	6,893

76

FINANCIAL HIGHLIGHTS (continued)

	Advisor Class
	U.S. Government Money Market Fund
			Year				Year
	Ended				Ended
	March 31,				March 31,
			2003				2002
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period		$	1.00			$	1.00
Net Investment Income†			—				.02
Net Increase in Net Asset Value Resulting from Operations			—				.02
Distributions to Shareholders from:
Net Investment Income			—				(.02	)
Net Increase in Net Asset Value			—				—
Net Asset Value—End of Period		$	1.00			$	1.00
Total Investment Return		0.27		%		1.84		%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses		1.41		%		1.32		%
Net Expenses		1.37		%		1.32		%
Net Investment Income		0.32		%		1.87		%
SUPPLEMENTARY DATA:
Net Assets, End of Period (000’s omitted)		$	187,513			$	371,356

†	Calculated using the average daily shares outstanding for the year.
*	Since the commencement of operations:April 1, 1998.
**	Annualized
See Notes to Financial Statements.

ANNUAL REPORT

77

		Advisor Class
		——––————————
		U.S. Government Money Market Fund
		——––————————
		Year				Year		Period
Ended				Ended				Ended
March 31,				March 31,				March 31,
		2001				2000		1999*
——––——				——––——				——––——
	$	1.00			$	1.00		$	1.00
—————				—————				—————
		.05				.04			.04
—————				—————				—————
		.05				.04			.04
		(.05	)			(.04	)		(.04	)
—————				—————				—————
		—				—			—
—————				—————				—————
	$	1.00			$	1.00		$	1.00
	4.99		%		3.94		%	4.02		%
	1.34		%		1.41		%	1.34		%**
	1.34		%		1.40		%	1.33		%**
	4.87		%		3.85		%	3.83		%**
$	451,796			$	212,181			$	321,581

78

FINANCIAL HIGHLIGHTS (continued)

			H Class
	—––——–––––—––––————
			Medius Fund
	—––——–––––—––––————
			Year		Period
			Ended				Ended
	March 31,				March 31,
			2003				2002*
	—————				—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period		$	26.08			$	25.00
	—————				—————
Net Investment Income (Loss)†			(.07	)			(.03	)
Net Realized and Unrealized Gains (Losses)
on Securities			(9.86	)			1.11
	—————				—————
Net Increase (Decrease) in Net Asset Value
Resulting from Operations			(9.93	)			1.08
Distributions to Shareholders from:
Net Investment Income			(.11	)			—
Net Realized Capital Gains			—				—
	—————				—————
Net Increase (Decrease) in Net Asset Value		(10.04		)			1.08
	—————				—————
Net Asset Value—End of Period		$	16.04			$	26.08
Total Investment Return	(38.11			)%		4.32		%
RATIOS  TO  AVERAGE  NET  ASSETS:
Gross Expenses		1.69		%	1.71			%**
Net Expenses		1.69		%	1.71			%**
Net Investment Income (Loss)	(0.32			)%	(0.19)%**
SUPPLEMENTARYDATA:
Portfolio Turnover Rate***		2,322		%			893	%
Net Assets, End of Period (000’s omitted)	$	14,634			$	116,176

†	Calculated using the average daily shares outstanding for the period.
*	Since the commencement of operations: August 16, 2001— Medius Fund; November 1, 2000—Mekros Fund.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

79

				H Class
—––———–––––––––––––––––––––––––—————
				Mekros Fund
—––———–––––––––––––––––––––––––—————
		Year		Year			Period
Ended				Ended			Ended
March 31,				March 31,			March 31,
		2003		2002			2001*
—————				—————			—–––——
	$	22.61		$	19.99		$	25.00
—––————				—–––————			—––————
		(.03	)		.16			.42
		(9.60	)		2.46			(5.43	)
—––————				—–––————			—––————
		(9.63	)		2.62			(5.01	)
		—			—			—
		(.04	)		—			—
—––————				—–––————			—––————
		(9.67	)		2.62			(5.01	)
—––————				—–––————			—––————
	$	12.94		$	22.61		$	19.99
(42.63			)%	13.11		%	(20.04		)%
	1.69		%	1.61		%	1.74		%**
	1.69		%	1.61		%	1.73		%**
(0.20			)%	0.74		%	4.24		%**
		746	%		714	%		—
$	32,101			$	120,045		$	36,704

80

FINANCIAL HIGHLIGHTS (continued)

				H Class
	————–––––––––––––––––––––––————————
				Large-Cap
				Europe Fund
	————–––––––––––––––––––––––————————
	Year			Year			Period
	Ended			Ended			Ended
	March 31,			March 31,			March 31,
	2003			2002			2001*
	—————			—————			—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	15.30		$	17.72		$	25.00
	—————			—————			—————
Net Investment Income (Loss)†		(.02	)		.19			.83
Net Realized and Unrealized Losses
on Securities	(5.40		)		(2.61	)		(8.11	)
	—————			—————			—————
Net Decrease in Net Asset Value
Resulting from Operations	(5.42		)		(2.42	)		(7.28	)
Distributions to Shareholders		—			—			—
	—————			—————			—————
Net Decrease in Net Asset Value	(5.42		)		(2.42	)		(7.28	)
	—————			—————			—————
Net Asset Value—End of Period	$	9.88		$	15.30		$	17.72
Total Investment Return	(35.42		)%	(13.66		)%	(29.12		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.68		%	1.76		%	2.06		%**
Net Expenses	1.68		%	1.76		%	2.06		%**
Net Investment Income (Loss)	(0.13		)%	1.18		%	4.03		%**
SUPPLEMENTARYDATA:
Portfolio Turnover Rate***		—			—			350	%
Net Assets, End of Period (000’s omitted)	$	4,698		$	9,697		$	9,977

†	Calculated using the average daily shares outstanding for the period.
*	Since the commencement of operations: May 8, 2000— Large-Cap Europe Fund and Large-Cap Japan Fund.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

81

			H Class
————––––––––––––––––––––––––———————
			Large-Cap
			Japan Fund
————––––––––––––––––––––––––———————
Year			Year			Period
Ended			Ended			Ended
March 31,			March 31,			March 31,
2003			2002			2001*
—————			—————			—————
$	9.09		$	13.04		$	25.00
—————			—————			—————
	(.01	)		.16			.69
(2.73		)		(4.11	)	(12.65		)
—————			—————			—————
(2.74		)		(3.95	)	(11.96		)
	—			—			—
—————			—————			—————
(2.74		)		(3.95	)	(11.96		)
—————			—————			—————
$	6.35		$	9.09		$	13.04
(30.14		)%	(30.29		)%	(47.84		)%
1.69		%	1.84		%	1.77		%**
1.69		%	1.84		%	1.77		%**
(0.06		)%	1.44		%	4.17		%**
	—			—			699	%
$	2,683		$	23,873		$	14,606

82

FINANCIAL HIGHLIGHTS (continued)

				C Class
	————–––––––––––––––––––––––————————
				Nova Fund
	————–––––––––––––––––––––––————————
	Year			Year			Period
	Ended			Ended			Ended
	March 31,			March 31,			March 31,
	2003			2002			2001*
	—————			—————			—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	25.28		$	26.84		$	27.18
	—————			—————			—————
Net Investment Income (Loss)†		(.08	)		(.18	)		(.01	)
Net Realized and Unrealized Gains (Losses) on Securities	(10.00		)		(1.25	)		(.33	)
	—————			—————			—————
Net Increase (Decrease) in Net Asset Value
Resulting from Operations	(10.08		)		(1.43	)		(.34	)
Distributions to Shareholders from:
Net Investment Income		—			(.13	)		—
	—————			—————			—————
Net Increase (Decrease) in Net Asset Value	(10.08		)		(1.56	)		(.34	)
	—————			—————			—————
Net Asset Value—End of Period	$	15.20		$	25.28		$	26.84
Total Investment Return	(39.87		)%	(5.37		)%	(1.25		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	2.28		%††	2.27		%††	1.86		%**
Net Expenses	2.28		%††	2.27		%††	1.77		%**
Net Investment Income (Loss)	(0.46		)%	(0.72		)%	(0.98		)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***		603	%		401	%		117	%
Net Assets, End of Period (000’s omitted)	$	12,627		$	10,355			$111

†	Calculated using the average daily shares outstanding for the period.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Since the commencement of operations: March 14, 2001—Nova Fund; March 15, 2001—Ursa Fund.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

83

			C Class
————––––––––––––––––––––––––———————
			Ursa Fund
————––––––––––––––––––––––––———————
Year			Year			Period
Ended			Ended			Ended
March 31,			March 31,			March 31,
2003			2002			2001*
—————			—————			—————
$	10.35		$	10.43		$	10.29
—————			—————			—————
	(.12	)		(.03	)		.01
	2.64			(.01	)		.13
—————			—————			—————
	2.52			(.04	)		.14
	(.07	)		(.04	)		—
—————			—————			—————
	2.45			(.08	)		.14
—————			—————			—————
$	12.80		$	10.35		$	10.43
24.35		%	(0.36		)%	1.36		%
2.40		%††	2.47		%††	2.15		%**††
2.40		%††	2.47		%††	2.15		%**††
(0.97		)%	(0.34		)%	3.04		%**
	—			—			—
$	17,540		$	7,007			$35

84

FINANCIAL HIGHLIGHTS (continued)

				C Class
	————–––––––––––––––––––––––——————
				OTC Fund
	————–––––––––––––––––––––––——————
	Year			Year			Period
	Ended			Ended			Ended
	March 31,			March 31,			March 31,
	2003			2002			2001*
	—————			—————			—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	10.03		$	11.20		$	11.95
	—————			—————			—————
Net Investment Income (Loss)†		(.14	)		(.21	)		—
Net Realized and Unrealized Gains (Losses) on Securities		(3.03	)		(.96	)		(.75	)
	—————			—————			—————
Net Increase (Decrease) in Net Asset Value
Resulting from Operations	(3.17		)		(1.17	)		(.75	)
Distributions to Shareholders from:
Net Investment Income		—			—			—
	—————			—————			—————
Net Increase (Decrease) in Net Asset Value	(3.17		)		(1.17	)		(.75	)
	—————			—————			—————
Net Asset Value—End of Period	$	6.86		$	10.03		$	11.20
Total Investment Return	(31.61		)%	(10.45		)%	(6.28		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	2.26		%	2.24		%	2.37		%**
Net Expenses	2.26		%	2.24		%	2.09		%**
Net Investment Income (Loss)	(1.98		)%	(2.13		)%	(2.03		)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***	180		%		109	%		228	%
Net Assets, End of Period (000’s omitted)	$	8,331		$	3,545			$32

†	Calculated using the average daily shares outstanding for the period.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
*	Since the commencement of operations: March 26, 2001—OTC Fund; March 7, 2001—Arktos Fund.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

85

			C Class
	––––––––––––––––––––––––––
			Arktos Fund
	––––––––––––––––––––––––––
Year			Year			Period
Ended			Ended			Ended
March 31,			March 31,			March 31,
2003			2002			2001*
—————			—————			—————
$	31.93		$	35.74		$	29.14
—————			—————			—————
	3.08			.43			—
	3.05			(3.95	)		6.60
—————			—————			—————
	6.13			(3.52	)		6.60
	(1.14	)		(.29	)		—
—————			—————			—————
	4.99			(3.81	)		6.60
—————			—————			—————
$	36.92		$	31.93		$	35.74
19.02		%	(9.80		)%	22.65		%
2.41		%††	2.38		%††	2.28%		**††
2.41		%††	2.38		%††	2.27%		**††
8.23		%	1.45		%	0.00		%**
	—			—		1,788		%
$	2,673		$	1,996			$22

86

FINANCIAL HIGHLIGHTS (continued)

	C Class
	—––——–––––—––––————
	Medius Fund
	—––——–––––—––––————
	Year			Period
	Ended			Ended
	March 31,			March 31,
	2003			2002*
	—————			—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	26.00		$	24.53
	—––—–———			—––—–———
Net Investment Income (Loss)†		(.17	)		(.13	)
Net Realized and Unrealized Gains (Losses) on Securities		(9.87	)		1.60
	—––—–———			—––—–———
Net Increase (Decrease) in Net Asset Value
Resulting from Operations	(10.04		)		1.47
Distributions to Shareholders from:
Net Investment Income		(.11	)		—
Net Realized Capital Gains		—			—
	—––—–———			—––—–———
Net Increase (Decrease) in Net Asset Value	(10.15		)		1.47
	—––—–———			—––—–———
Net Asset Value—End of Period	$	15.85		$	26.00
Total Investment Return	(38.65		)%	5.99		%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	2.43		%	2.44		%**
Net Expenses	2.43		%	2.44		%**
Net Investment Income (Loss)	(0.95		)%	(0.96		)%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***	2,322		%		893	%
Net Assets, End of Period (000’s omitted)	$	5,610		$	1,734

†	Calculated using the average daily shares outstanding for the period.
*	Since the commencement of operations: August 20, 2001—Medius Fund; January 23, 2001—Mekros Fund.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short—term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

87

				C Class
—––———–––––––––––––––––––––––––————
				Mekros Fund
—––———–––––––––––––––––––––––––————
		Year		Year			Period
Ended				Ended			Ended
March 31,				March 31,			March 31,
		2003		2002			2001*
—————				—————			—–––——
	$	22.47		$	19.99		$	24.28
—––————				—–––————			—––————
		(.15	)		(.07	)		.17
		(9.53	)		2.55			(4.46	)
—––————				—–––————			—––————
		(9.68	)		2.48			(4.29	)
		—			—			—
		(.04	)		—			—
—––————				—–––————			—––————
		(9.72	)		2.48			(4.29	)
—––————				—–––————			—––————
	$	12.75		$	22.47		$	19.99
(43.12			)%	12.41		%	(17.67		)%
	2.43		%	2.44		%	2.54		%**
	2.43		%	2.44		%	2.52		%**
(0.91			)%	(0.33		)%	3.80		%**
		746	%		714	%		—
$	13,530			$	20,604			$2

88

FINANCIAL HIGHLIGHTS (continued)

	C Class
	—––——–––––—––––————
	U.S. Government
	Bond Fund
	—––——–––––—––––————
	Year			Period
	Ended			Ended
	March 31,			March 31,
	2003			2002*
	—————			—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	9.12		$	9.42
	—––—–———			—––—–———
Net Investment Income (Loss)†		.31			.32
Net Realized and Unrealized Gains (Losses) on Securities		1.85			(.32	)
	—––—–———			—––—–———
Net Increase (Decrease) in Net Asset Value
Resulting from Operations		2.16			—
Distributions to Shareholders from:
Net Investment Income		(.31	)		(.30	)
	—––—–———			—––—–———
Net Increase (Decrease) in Net Asset Value		1.85			(.30	)
	—––—–———			—––—–———
Net Asset Value—End of Period	$	10.97		$	9.12
Total Investment Return	23.93		%	(0.14		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	1.95		%	1.79		%**
Net Expenses	1.95		%	1.79		%**
Net Investment Income (Loss)	2.86		%	3.53		%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***	2,404		%	860		%
Net Assets, End of Period (000’s omitted)	$	2,163		$	209

†	Calculated using the average daily shares outstanding for the period.
††	Ratios to Average Net Assets include expenses of the corresponding Master Portfolio.
†††	Per share amounts for the periods ended March 31, 2001 and March 31, 2002 have been restated to reflect a 1:3 reverse stock split effectiveFebruary 10, 2003.
*	Since the commencement of operations: May 2, 2001—U.S. Government Bond Fund; March 28, 2001—Juno Fund.
**	Annualized
***	Portfolio turnover rate is calculated without regard to short-term securities having a maturity of less than one year.
See Notes to Financial Statements.

ANNUAL REPORT

89

		C Class
	––––––––––––––––––––––––––
		Juno Fund
	––––––––––––––––––––––––––
Year			Year			Period
Ended			Ended			Ended
March 31,			March 31,			March 31,
2003			2002†††			2001†††*
—————			—————			—–––——
$	26.16		$	25.59		$	25.65
—––————			—–––————			—––————
	(.17	)		.15			—
	(5.11	)		.42			(.06	)
—––————			—–––————			—––————
	(5.28	)		.57			(.06	)
	—			—			—
—––————			—–––————			—––————
	(5.28	)		.57			(.06	)
—––————			—–––————			—––————
$	20.88		$	26.16		$	25.59
(20.13		)%	2.23		%	(.23		)%
2.40		%††	2.47		%††	2.48		%**††
2.40		%††	2.47		%††	2.48		%**††
(1.64		)%	0.55		%	2.70		%**
	—			—			—
$	60,969			$877		$	1,702

90

FINANCIAL HIGHLIGHTS (continued)

	C Class
	—––——–––––––––——————
	Large Cap
	Europe Fund
	—––——–––––––––——————
	Year			Period
	Ended			Ended
	March 31,			March 31,
	2003			2002*
	—————			—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	15.22		$	19.09
	—––—–———			—––—–———
Net Investment Income (Loss)†		(.10	)		(.11	)
Net Realized and Unrealized Gains (Losses) on Securities		(5.38	)		(3.76	)
	—––—–———			—––—–———
Net Increase (Decrease) in Net Asset Value
Resulting from Operations		(5.48	)		(3.87	)
Distributions to Shareholders from:
Net Investment Income		—			—
	—––—–———			—––—–———
Net Increase (Decrease) in Net Asset Value		(5.48	)		(3.87	)
	—––—–———			—––—–———
Net Asset Value—End of Period	$	9.74		$	15.22
Total Investment Return	(36.01		)%	(20.27		)%
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses	2.45		%	2.69		%**
Net Expenses	2.45		%	2.69		%**
Net Investment Income (Loss)	(0.96		)%	(0.82		)%**
SUPPLEMENTARY DATA:
Net Assets, End of Period (000’s omitted)	$	1,957		$	116

†	Calculated using the average daily shares outstanding for the period.
*	Since the commencement of operations: May 10, 2001— Large-Cap Europe Fund; March 1, 2002—Large-Cap Japan Fund; October 19, 2000—U.S. Government Money Market Fund.
**	Annualized
See Notes to Financial Statements.

ANNUAL REPORT

91

		C Class
	––––––—–––––––––––––––––––––––––––––––––——————
Large Cap								U.S. Government
Japan Fund								Money Market Fund
—––—–––––—–––——————						—––—–––––––––––––––––––—––––——————
Year			Period					Year		Year				Period
Ended			Ended			Ended				Ended				Ended
March 31,			March 31,			March 31,				March 31,			March 31,
2003			2002*					2003		2002				2001*
—————			—————			—————				—————			—–––——
$	9.08		$	8.55			$	1.00		$	1.00			$	1.00
—––————			—––————			—––————				—–––————			—––————
	(.06	)		(.01	)			—			.01				.02
(2.70		)		.54				—			—				—
—––————			—––————			—––————				—–––————			—––————
(2.76		)		.53				—			.01				.02
	—			—				—			(.01	)			(.02	)
—––————			—––————			—––————				—–––————			—––————
(2.76		)		.53				—			—				—
—––————			—––————			—––————				—–––————			—––————
$	6.32		$	9.08			$	1.00		$	1.00			$	1.00
(30.40		)%	6.20		%		0.08		%	1.35		%		1.97		%
2.36		%	2.20		%**		1.91		%	1.80		%		1.79		%**
2.36		%	2.20		%**		1.50		%	1.80		%		1.78		%**
(0.68		)%	(0.72		)%**		0.06		%	1.13		%		4.31		%**
	$9			$12		$	201,745			$	47,920			$	37,514

92

FINANCIAL HIGHLIGHTS (concluded)

	Institutional Class
	—––——–––––—––––——————
	Government
	Money Market Fund
	—––——–––––—––––——————
	Period Ended
	March 31,
	2003*
	—––——–––––—––––——————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value-Beginning of Period	$	1.00
	—––—–———
Net Investment Income†		.01
	—––—–———
Net Increase in Net Asset Value
Resulting from Operations		.01
Distributions to Shareholders from:
Net Investment Income		(.01	)
	—––—–———
Net Increase in Net Asset Value		—
	—––—–———
Net Asset Value—End of Period	$	1.00
Total Investment Return	0.63		%
RATIOS TOAVERAGENETASSETS
Gross Expenses	0.90		%**
Net Expenses	0.55		%**
Net Investment Income	0.80		%**
SUPPLEMENTARYDATA:
Net Assets, End of Year (000's omitted)	$	60,008

†	Calculated using the average daily shares outstanding for the period.
*	Since the commencement of operations:August 1, 2002.
**	Annualized
See Notes to Financial Statements.

ANNUAL REPORT

93

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS March 31, 2003

		MARKET
		VALUE
	SHARES	(NOTE 1)
COMMON STOCKS 85.5%
FINANCIALS 17.0%
Diversified Financials 6.6%
Citigroup, Inc	96,896	$	3,338,067
Freddie Mac	23,695		1,258,204
Morgan Stanley	31,900		1,223,365
Merrill Lynch & Co.,
Inc	31,800		1,125,720
MBNA Corp	56,391		848,685
JP Morgan Chase
& Co	32,600		772,946
Lehman Brothers
Holdings, Inc	12,000		693,000
Fannie Mae	9,600		627,360
State Street Corp	19,300		610,459
Countrywide Financial
Corp	9,203		529,173
American Express Co.	8,101		269,196
Capital One Financial
Corp	2,500		75,025
Goldman Sachs Group,
Inc	300		20,424
Total Diversified Financials			11,391,624
Banks 6.2%
Bank of America
Corp	31,897		2,131,995
Wells Fargo & Co	31,900		1,435,181
Washington Mutual,
Inc	37,700		1,329,679
Wachovia Corp	36,696		1,250,233
US Bancorp	64,190		1,218,326
PNC Financial Services
Group, Inc	18,800		796,744
Keycorp	32,693		737,554
BB&T Corp	19,900		625,457
National City Corp	11,400		317,490
Union Planters Corp.	11,896		312,746
FleetBoston Financial
Corp	9,100		217,308
Bank One Corp	5,700		197,334
Total Banks			10,570,047

		MARKET
		VALUE
	SHARES	(NOTE 1)
Insurance 4.2%
American International
Group	34,302	$	1,696,234
Metlife, Inc	36,100		952,318
Marsh & McLennan
Cos., Inc	21,300		908,019
Prudential Financial,
Inc	29,400		859,950
Xl Capital Corp
Limited—Class A	10,500		743,190
Allstate Corp	22,097		732,958
MBIA, Inc	14,800		571,872
Travelers Property
Casualty Corp.
—Class B	16,900		238,459
Hartford Financial
Services Group, Inc.	4,700		165,863
John Hancock Financial
Services, Inc	5,100		141,678
UnumProvident Corp.	10,900		106,820
AON Corp	4,196		86,773
Total Insurance			7,204,134
Total Financials			29,165,805
HEALTH CARE 13.5%
Pharmaceuticals 9.3%
Pfizer, Inc	116,190		3,620,481
Johnson & Johnson	56,000		3,240,720
Merck & Co., Inc	43,700		2,393,886
Pharmacia Corp	41,998		1,818,513
Wyeth	35,600		1,346,392
Eli Lilly & Co	19,800		1,131,570
Abbott Laboratories	19,400		729,634
Bristol-Myers Squibb
Co	29,295		619,003
Schering-Plough Corp.	21,500		383,345
Forest Laboratories,
Inc.*	6,600		356,202
King Pharmaceuticals,
Inc.*	16,300		194,459
Watson Pharmaceuticals,
Inc.*	5,300		152,481
Total Pharmaceuticals			15,986,686

* Non-Income Producing Securities

See Notes to Financial Statements.

94

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Health Care Providers & Services 1.8%
Manor Care, Inc.*	41,700	$	801,891
Anthem, Inc.*	11,196		741,735
McKesson Corp	22,300		555,939
Cardinal Health, Inc.	9,203		524,295
UnitedHealth Group,
Inc	2,000		183,340
Tenet Healthcare
Corp.*	10,100		168,670
WellPoint Health
Networks*	400		30,700
Total Health Care Providers
& Services			3,006,570
Biotechnology 1.3%
Amgen, Inc.*	24,497		1,409,802
Monsanto Co	21,300		349,320
Biogen, Inc.*	6,600		197,736
Genzyme Corp.—
General Division*	5,100		185,895
Chiron Corp.*	4,497		168,638
Total Biotechnology			2,311,391
Health Care Equipment & Supplies 1.1%
Bausch & Lomb, Inc.	18,895		621,456
Medtronic, Inc	12,700		573,024
Boston Scientific
Corp.*	10,095		411,472
Baxter International,
Inc	17,195		320,515
Total Health Care Equipment
& Supplies			1,926,467
Total Health Care			23,231,114
INFORMATION TECHNOLOGY 12.7%
Software 4.1%
Microsoft Corp	201,680		4,882,673
Oracle Corp.*	85,190		924,226
BMC Software, Inc.*	32,397		488,871
Computer Associates
International, Inc.	23,597		322,335
Intuit, Inc.*	6,690		248,868
Siebel Systems, Inc.* .	9,200		73,692
Veritas Software
Corp.*	3,500		61,530

		MARKET
		VALUE
	SHARES	(NOTE 1)
Citrix Systems, Inc.*	3,300	$	43,428
Compuware Corp.*	1,800		6,102
Peoplesoft, Inc.*	300		4,590
Total Software			7,056,315
Computers & Peripherals 3.3%
International Business
Machines Corp	31,900		2,501,917
Dell Computer
Corp.*	60,496		1,652,146
Hewlett-Packard Co..	50,394		783,626
EMC Corp./
Massachusetts*	52,100		376,683
Lexmark International,
Inc.—Class A*	3,799		254,343
Sun Microsystems,
Inc.*	39,100		127,466
Total Computers
& Peripherals			5,696,181
Semiconductor Equipment
& Products 2.3%
Intel Corp	124,990		2,034,837
Maxim Integrated
Products	8,700		314,244
Texas Instruments, Inc.	18,900		309,393
Applied Materials, Inc.*	17,903		225,220
National Semiconductor
Corp.*	10,700		182,328
Altera Corp.*	12,698		171,931
LSI Logic Corp.*	29,698		134,235
Micron Technology,
Inc.*	13,000		105,820
Kla—Tencor Corp.*	2,500		89,855
QLogic Corp.*	2,400		89,136
Nvidia Corp.*	6,800		87,380
PMC—Sierra, Inc.*	10,100		60,095
Linear Technology Corp.	1,800		55,566
Novellus Systems, Inc.*	1,400		38,178
Total Semiconductor Equipment
& Products			3,898,218
Communications Equipment 1.5%
Cisco Systems, Inc.*	136,290		1,769,044
Qualcomm, Inc	11,896		428,970
Motorola, Inc	18,697		154,437

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT

95

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Corning, Inc.*	21,100	$	123,224
Tellabs, Inc.*	17,200		99,588
Andrew Corp.*	5,898		32,439
Total Communications
Equipment			2,607,702
IT Consulting & Services 0.6%
Unisys Corp.*	34,500		319,470
Computer Sciences
Corp.*	7,600		247,380
Electronic Data
Systems Corp	12,700		223,520
Sungard Data Systems,
Inc.*	10,200		217,260
Total IT Consulting
& Services			1,007,630
Internet Software & Services 0.4%
Yahoo, Inc.*	25,500		612,510
Total Internet Software
& Services			612,510
Office Electronics 0.3%
Xerox Corp.*	52,500		456,750
Total Office Electronics			456,750
Electronic Equipment
& Instruments 0.2%
Jabil Circuit, Inc.*	9,300		162,750
Symbol Technologies,
Inc	14,600		125,706
Perkinelmer, Inc	9,500		84,455
Solectron Corp.*	8,000		24,160
Total Electronic Equipment
& Instruments			397,071
Total Information
Technology			21,732,377
CONSUMER DISCRETIONARY 11.8%
Media 3.4%
Viacom, Inc.—Class B*	44,300		1,617,836
Comcast Corp.
—Class A*	44,200		1,263,678
McGraw Hill Cos.,
Inc	16,702		928,464

			MARKET
			VALUE
	SHARES		(NOTE 1)
Clear Channel
Communications,
Inc.*	20,702	$	702,212
AOL Time Warner,
Inc.*	61,292		665,631
Omnicom Group	6,200		335,854
Univision
Communications,
Inc.—Class A*	11,200		274,512
Walt Disney Co	8,196		139,496
Total Media			5,927,683
Multiline Retail 3.3%
Wal-Mart Stores, Inc.	83,290		4,333,579
J.C. Penney Co., Inc.
Holding Co	18,300		359,412
Big Lots, Inc.*	31,698		356,602
Kohls Corp.*	4,200		237,636
Federated Department
Stores*	8,000		224,160
Costco Wholesale
Corp.*	5,200		156,156
Total Multiline Retail			5,667,545
Specialty Retail 1.8%
Home Depot, Inc	38,094		927,970
The Gap, Inc	57,300		830,277
Staples, Inc.*	41,799		766,175
Best Buy Co., Inc.*	8,202		221,208
Office Depot, Inc.*	17,700		209,391
RadioShack Corp	3,300		73,557
Lowe’s Cos., Inc	400		16,328
Total Specialty Retail			3,044,906
Leisure Equipment & Products 1.0%
Mattel, Inc	36,600		823,500
Eastman Kodak Co	23,400		692,640
Brunswick Corp	8,303		157,757
Total Leisure Equipment
& Products			1,673,897
Hotels Restaurants & Leisure 0.6%
Carnival Corp	27,997		675,008
Hilton Hotels Corp.	21,000		243,810
McDonald’s Corp	5,700		82,422
Total Hotels Restaurants
& Leisure			1,001,240

* Non-Income Producing Securities

See Notes to Financial Statements.

96

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Household Durables 0.6%
Fortune Brands, Inc. .	9,600	$	411,552
Centex Corp	6,900		375,084
Newell Rubbermaid,
Inc	4,700		133,245
Stanley Works	1,400		33,586
Total Household Durables			953,467
Internet & Catalog Retail 0.4%
eBay, Inc.*	8,700		742,023
Total Internet & Catalog
Retail			742,023
Automobiles 0.4%
General Motors Corp.	13,200		443,784
Ford Motor Co	25,400		191,008
Total Automobiles			634,792
Auto Components 0.3%
Delphi Corp	63,390		432,954
Dana Corp	13,400		94,604
Total Auto Components			527,558
Textiles & Apparel 0.0%
Liz Claiborne, Inc	1,300		40,196
Total Textiles & Apparel			40,196
Total Consumer
Discretionary			20,213,307
INDUSTRIALS 9.7%
Industrial Conglomerates 3.3%
General Electric Co. .	187,680		4,785,840
Tyco International,
Ltd	60,590		779,187
Total Industrial
Conglomerates			5,565,027
Aerospace & Defense 2.0%
Northrop Grumman
Corp	10,000		858,000
Raytheon Co	27,400		777,338
Lockheed Martin
Corp	13,300		632,415
Boeing Co	15,695		393,317

		MARKET
		VALUE
	SHARES	(NOTE 1)
General Dynamics
Corp	6,600	$	363,462
Rockwell Collins, Inc.	7,300		134,101
Honeywell International,
Inc	4,200		89,712
Goodrich Corp	6,100		85,766
Total Aerospace & Defense			3,334,111
Machinery 1.7%
Deere & Co	18,200		714,532
Ingersoll-Rand Co	15,500		598,145
Paccar, Inc	10,700		537,889
Eaton Corp	6,200		433,690
Cummins Engine, Inc.	13,400		329,640
Caterpillar, Inc	5,597		275,372
Danaher Corp	1,000		65,760
Illinois Tool Works, Inc.	100		5,815
Total Machinery			2,960,843
Commercial Services & Supplies 1.0%
First Data Corp	12,400		458,924
3M Co	2,700		351,081
Concord EFS, Inc.*	28,793		270,654
Automatic Data
Processing	7,803		240,255
Allied Waste Industries,
Inc.*	17,203		137,452
Paychex, Inc	4,500		123,615
Cendant Corp.*	4,397		55,842
H&R Block, Inc	1,300		55,497
Fiserv, Inc.*	500		15,740
Total Commercial Services
& Supplies			1,709,060
Electrical Equipment 0.6%
Thomas & Betts
Corp.*	20,296		287,797
Emerson Electric Co.	5,800		263,030
Power One, Inc.*	37,100		163,240
Rockwell Automation,
Inc	6,400		132,480
Molex, Inc	5,300		113,844
Cooper Industries, Ltd.	2,402		85,776
Total Electrical Equipment			1,046,167

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT

97

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Road & Rail 0.5%
Union Pacific Corp	15,200	$	836,000
Total Road & Rail			836,000
Air Freight & Couriers 0.4%
United Parcel Service,
Inc.—Class B	11,500		655,500
Ryder System, Inc	4,500		92,295
Total Air Freight & Couriers			747,795
Trading Companies & Distributors 0.2%
W.W. Grainger, Inc.	7,200		308,880
Total Trading Companies
& Distributors			308,880
Airlines 0.0%
Delta Air Lines, Inc.	6,200		55,180
Total Airlines			55,180
Total Industrials			16,563,063
CONSUMER STAPLES 7.7%
Beverages 2.6%
Coca-Cola Co	43,300		1,752,784
PepsiCo., Inc	32,597		1,303,880
Anheuser-Busch Cos.,
Inc	16,403		764,544
Pepsi Bottling Group,
Inc	36,700		658,031
Coors (Adolph) —
Class B	1,100		53,350
Total Beverages			4,532,589
Household Products 2.3%
Procter & Gamble Co.	24,500		2,181,725
Colgate-Palmolive Co.	17,397		947,093
Clorox Co	19,396		895,513
Total Household Products			4,024,331
Food & Drug Retailing 1.2%
CVS Corp	36,695		875,176
Sysco Corp	26,500		674,160
Walgreen Co	11,000		324,280
Albertson’s, Inc	6,298		118,717
Safeway, Inc.*	2,900		54,897
Supervalu, Inc	3,100		48,050
Total Food & Drug Retailing			2,095,280

			MARKET
			VALUE
	SHARES		(NOTE 1)
Tobacco 0.7%
Altria Group, Inc	39,000	$	1,168,440
Total Tobacco			1,168,440
Food Products 0.5%
Sara Lee Corp	46,294		865,698
Total Food Products			865,698
Personal Products 0.4%
The Gillette Co	19,700		609,518
Total Personal Products			609,518
Total Consumer Staples			13,295,856
ENERGY 5.4%
Oil & Gas 5.1%
Exxon Mobil Corp	126,990		4,438,300
ChevronTexaco Corp.	29,400		1,900,710
Anardarko Petroleum
Corp	15,695		714,123
Burlington Resources,
Inc	12,400		591,604
Unocal Corp	20,600		541,986
Occidental Petroleum
Corp	9,200		275,632
Marathon Oil Corp. .	10,200		244,494
Devon Energy Corp. .	800		38,576
ConocoPhillips	500		26,800
Total Oil & Gas			8,772,225
Energy Equipment & Services 0.3%
Rowan Cos., Inc	15,900		312,594
BJ Services Co.*	2,402		82,605
Noble Corp.*	1,800		56,556
Total Energy Equipment
& Services			451,755
Total Energy			9,223,980
TELECOMMUNICATION SERVICES 3.2%
Diversified Telecommunication
Services 2.8%
Verizon Communications,
Inc	53,400		1,887,690
SBC Communications,
Inc	66,390		1,331,784
BellSouth Corp	35,693		773,467

* Non-Income Producing Securities

See Notes to Financial Statements.

98

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (continued) March 31, 2003

			MARKET
			VALUE
	SHARES		(NOTE 1)
Sprint Corp.—FON
Group	30,200	$	354,850
AT&T Corp	14,500		234,900
Qwest Communications
International*	35,300		123,197
Lucent Technologies,
Inc.*	67,490		99,210
Citizens Communications
Co.*	5,297		52,864
Avaya, Inc.*	13,700		27,948
Total Diversified Telecommunication
Services			4,885,910
Wireless Telecommunication
Services 0.4%
Nextel Communications,
Inc.*	27,500		368,225
AT&T Wireless Services,
Inc.*	32,597		215,140
Sprint Corp.—PCS
Group*	11,400		49,704
Total Wireless Telecommunication
Services			633,069
Total Telecommunication
Services			5,518,979
UTILITIES 2.4%
Electric Utilities 2.1%
The Southern Co	31,000		881,640
FirstEnergy Corp	24,097		759,056
Cinergy Corp	21,997		740,199
Exelon Corp	11,700		589,797
Consolidated Edison,
Inc	8,500		326,995
Entergy Corp	3,000		144,450
PG&E Corp.*	7,600		102,220
Public Service Enterprise
Group, Inc	1,300		47,697
Edison International*.	600		8,214
Total Electric Utilities			3,600,268
Gas Utilities 0.3%
NiSource, Inc	25,700		467,740
Total Gas Utilities			467,740

			MARKET
			VALUE
	SHARES		(NOTE 1)
Multi-Utilities 0.0%
TXU Corp	3,400	$	60,690
Mirant Corp.*	15,900		25,440
Total Multi-Utilities			86,130
Total Utilities			4,154,138
MATERIALS 2.1%
Chemicals 1.0%
Sigma-Aldrich Corp.	14,600		649,554
Rohm & Haas Co	15,900		473,502
Eastman Chemical Co.	12,500		362,375
Du Pont EI de Nemours
& Co	3,000		116,580
Air Products &
Chemicals, Inc	800		33,144
Great Lakes Chemical
Corp	400		8,880
Total Chemicals			1,644,035
Metals & Mining 0.7%
Freeport-McMoRan
Copper & Gold,
Inc.*	37,800		644,490
United States Steel
Corp	43,300		425,639
Alcoa, Inc	4,196		81,318
Total Metals & Mining			1,151,447
Paper & Forest Products 0.2%
Weyerhaeuser Co	9,000		430,470
MeadWestvaco Corp.	300		6,834
Georgia-Pacific Corp.	400		5,560
Total Paper & Forest
Products			442,864
Containers & Packaging 0.2%
Pactiv Corp.*	8,300		168,490
Bemis Co	3,400		143,005
Total Containers
& Packaging			311,495
Total Materials			3,549,841
Total Common Stocks
(Cost $139,711,407)	146,648,460

* Non-Income Producing Securities

See Notes to Financial Statements.

ANNUAL REPORT

99

NOVA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (concluded) March 31, 2003

					MARKET
					VALUE
		CONTRACTS			(NOTE 1)
OPTIONS PURCHASED 0.2%
Call Options on:
June 2003 S&P 500 Futures Contracts
Expiring June 2003 with strike price of 500		5		$	432,250
Put Options on:
June 2003 S&P 500 Futures Contracts
Expiring June 2003 with strike price of 400		900			—
Total Options Purchased
(Cost $481,530)					432,250
		FACE
		AMOUNT
		————
REPURCHASE AGREEMENTS 14.3%
Repurchase Agreement (Note 4)
1.29% due 04/01/03	$	8,160,592			8,160,592
1.25% due 04/01/03		8,160,592			8,160,592
1.20% due 04/01/03		8,160,592			8,160,592
Total Repurchase Agreements
(Cost $24,481,776)					24,481,776
Total Investments 100%
(Cost $164,674,713)			$	171,562,486

				UNREALIZED
				GAIN
			CONTRACTS	(NOTE1)
FUTURES CONTRACTS PURCHASED
June 2003 S&P 500 Futures Contracts
(Aggregate Market Value of Contracts $	107,306,550	)	507	$	3,076,880

See Notes to Financial Statements.

100

URSA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTSMarch 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 69.7%
Fannie Mae
1.23% due 04/14/03	$	50,000,000	$	49,977,792
1.22% due 05/21/03		50,000,000		49,915,278
1.22% due 04/02/03		25,000,000		24,999,153
1.24% due 04/28/03		25,000,000		24,976,750
Federal Home Loan Bank
1.15% due 04/09/03		50,000,000		49,987,222
1.22% due 04/21/03		25,000,000		24,983,055
Freddie Mac
1.22% due 05/29/03		50,000,000		49,901,722
1.20% due 06/13/03		50,000,000		49,878,333
1.22% due 05/15/03		15,000,000		14,977,633
1.22% due 05/22/03		10,000,000		9,982,717
Total Federal Agency Discount Notes
(Cost $349,579,655)				349,579,655
		CONTRACTS
		——–––——
OPTIONS PURCHASED 3.5%
Put Options on:
June 2003 S&P 500 Futures Contracts
Expiring June 2003 with strike price of 1300		155		17,549,875
Call Options on:
June 2003 S&P 500 Futures Contracts
Expiring June 2003 with strike price of 1200		50		625
June 2003 S&P 500 Futures Contracts
Expiring June 2003 with strike price of 1300		1,100		—
June 2003 S&P 500 Futures Contracts
Expiring June 2003 with strike price of 1250		1,000		—
Total Options Purchased
(Cost $18,524,693)				17,550,500

See Notes to Financial Statements.

ANNUAL REPORT

101

URSA MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (concluded) March 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
REPURCHASE AGREEMENTS 26.8%
Repurchase Agreement (Note 4)
1.29% due 04/01/03	$	44,912,443		$	44,912,443
1.25% due 04/01/03		44,912,443			44,912,443
1.20% due 04/01/03		44,912,443			44,912,443
Total Repurchase Agreements
(Cost $134,737,329)					134,737,329
Total Investments 100%
(Cost $502,841,677)				$	501,867,484
					UNREALIZED
					GAIN(LOSS)
	CONTRACTS				(NOTE1)
FUTURES CONTRACTS SOLD SHORT
June 2003 S&P 500 Mini Futures Contracts		1,250		$	313,279
June 2003 S&P Futures Contracts		2,097		$	(3,314,315	)
(Aggregate Market Value of Contracts $496,705,050)				$	(3,001,036	)

See Notes to Financial Statements.

102

ARKTOS MASTER PORTFOLIO

SCHEDULE OF INVESTMENTSMarch 31, 2003

			MARKET
	FACE		VALUE
	AMOUNT		(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 73.3%
Federal Home Loan Bank
1.19% due 04/16/03	$	40,000,000	$	39,980,168
1.19% due 04/23/03		40,000,000		39,970,911
1.18% due 04/25/03		10,000,000		9,992,133
Freddie Mac
1.18% due 04/22/03		25,000,000		24,982,792
Total Federal Agency Discount Notes
(Cost $114,926,004)				114,926,004
	CONTRACTS
	——–––——
OPTIONS PURCHASED 0.0%
Call Options on:
June 2003 Nasdaq 100 Futures Contracts
Expiring June 2003 with strike price of 1700		175		—
Total Options Purchased
(Cost $10,325)				—
		FACE
		AMOUNT
		————
REPURCHASE AGREEMENTS 26.7%
Repurchase Agreement (Note 4)
1.30% due 04/01/03	$	5,616,137		5,616,137
1.29% due 04/01/03		12,108,684		12,108,684
1.25% due 04/01/03		12,108,684		12,108,684
1.20% due 04/01/03		12,108,684		12,108,684
Total Repurchase Agreements
(Cost $41,942,189)				41,942,189
Total Investments 100%
(Cost $156,878,518)			$	156,868,193
				UNREALIZED
				GAIN(LOSS)
	CONTRACTS			(NOTE1)
FUTURES CONTRACTS SOLD SHORT
June 2003 Nasdaq 100 Futures Contracts
(Aggregate Market Value of Contract $8,993,600)		88	$	136,472
		UNITS
		—————
EQUITY INDEX SWAP AGREEMENT
April 2003 Nasdaq 100 Index Swap, Maturing 04/11/03*
(Total Notional Value $125,284,006)		137,129	$	(5,398,884	)

*Price Return based on Nasdaq 100 Index +/- financing at a variable rate.

See Notes to Financial Statements.

ANNUAL REPORT

103

JUNO MASTER PORTFOLIO

SCHEDULE OF INVESTMENTSMarch 31, 2003

					MARKET
	FACE				VALUE
	AMOUNT				(NOTE 1)
FEDERAL AGENCY DISCOUNT NOTES 18.8%
Fannie Mae
1.19% due 04/30/03	$	25,000,000		$	24,976,034
Federal Home Loan Bank
1.19% due 04/23/03		50,000,000			49,963,639
Total Federal Agency Discount Notes
(Cost $74,939,673)					74,939,673
BANK NOTES 6.3%
World Bank Discount Note
1.18% due 04/17/03		25,000,000			24,986,889
Total Bank Notes
(Cost $24,986,889)					24,986,889
		CONTRACTS
		——–––——
OPTIONS PURCHASED 0.0%
Call Options on:
June 2003 U.S.Treasury Bond Futures Contracts,
Expiring June 2003 with strike price of 1320		885			13,828
June 2003 U.S.Treasury Bond Futures Contracts,
Expiring June 2003 with strike price of 1300		112			1,750
Total Options Purchased
(Cost $30,716)					15,578
		FACE
		AMOUNT
		————
REPURCHASE AGREEMENTS 74.9%
Joint Repurchase Agreement (Note 4)
1.29% due 04/01/03	$	33,718,951			33,718,951
1.25% due 04/01/03		33,718,951			33,718,951
1.20% due 04/01/03		33,718,951			33,718,951
Individual Repurchase Agreement
Lehman Brothers, Inc. at 1.15% due 04/01/03	196,960,000			196,960,000
(Secured by U.S.Treasury Bonds, at a rate of 5.375% and
maturing 02/15/31, as collateral, with a market
value of $202,127,820)
Total Repurchase Agreements
(Cost $298,116,853)				$298,116,853
Total Investments 100%
(Cost $398,074,131)				$398,058,993
					UNREALIZED
		FACE			GAIN
		AMOUNT			(NOTE 1)
U.S.TREASURY OBLIGATIONS SOLD SHORT
U.S.Treasury Bond
(Market Value $189,543,559)	$	174,833,000	$		1,455,139

See Notes to Financial Statements.

104

STATEMENTS OF ASSETS AND LIABILITIES

	Nova Master
			Portfolio
	——–—–——
ASSETS
Securities at Value* (Note 1)		$	171,562,486
Receivable for Futures Contracts Settlement (Note 1)			—
Investment Income Receivable (Note 1)			145,440
Cash in Custodian Bank			10,000
Segregated Cash with Broker			7,725,930
Receivable for Shares Purchased			—
Other Assets			—
	———––——
Total Assets			179,443,856
	———––——
LIABILITIES
Investment Advisory Fee Payable (Note 5)			94,503
Payable for Equity Index Swap Settlement (Note 1)			—
Payable for Futures Contracts Settlement (Note 1)			2,315,664
Payable to cover Short Sale			—
Short Sale at Market Value			—
Liability for Shares Redeemed			6,234,657
Cash Payable to Custodian Bank			—
Interest Payable			—
Custody Fees Payable			5,173
Payable to "Feeder" Fund			899
	———––——
Total Liabilities			8,650,896
	———––——
NET ASSETS (NOTE 9)		$	170,792,960
	———––——
Shares Outstanding			6,228,356
Net Asset Value Per Share		$	27.42

* The cost of Securities at Value is $164,674,713, $502,841,677, $156,878,518 and $398,074,131,respectively.

See Notes to Financial Statements.

ANNUAL REPORT

105

March 31, 2003

Ursa Master			Arktos Master			Juno Master
		Portfolio			Portfolio			Portfolio
———–——			————–——			———–——
	$	501,867,484		$	156,868,193		$	398,058,993
		9,186,802			221,172			—
		4,666			1,461			9,795
		—			—			—
		17,224,805			674,737			—
		1,278,017			5,813,839			—
		—			33,838			—
——–—–——			——–—–——			——–—–——
		529,561,774			163,613,240			398,068,788
——–—–——			——–—–——			——–—–——
		467,434			121,512			120,024
		—			14,339,046			—
		—			—			—
		—			—			11,676,195
		—			—			189,543,559
		—			—			5,515,021
		10,000			—			—
		—			—			1,240,131
		20,871			5,401			5,422
		978			433			102
——–—–——			——–—–——			——–—–——
		499,283			14,466,392			208,100,454
——–—–——			——–—–——			——–—–——
	$	529,062,491		$	149,146,848		$	189,968,334
——–—–——			——–—–——			——–—–——
		6,530,592			1,680,846			5,086,031
	$	81.01		$	88.73		$	37.35

106

STATEMENTS OF OPERATIONS

	Nova Master
	Portfolio
	———–——
INVESTMENTINCOME
Interest (Note 1)	$	468,664
Interest from Securities Lending		6,353
Interest Related to Securities Sold Short		—
Dividends, Net of Foreign Tax Withheld* (Note 1)		2,782,844
Other Income		1,426
	–––––––––––
Total Income		3,259,287
	–––––––––––
EXPENSES
Advisory Fees (Note 5)		1,439,326
Custodian Fees		77,796
	–––––––––––
Total Expenses		1,517,122
	–––––––––––
Net Investment Income (Loss)		1,742,165
	–––––––––––
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities		(31,225,119	)
Equity Index Swaps		—
Futures Contract		(57,413,463	)
Securities Sold Short		—
	–––––––––––
Total Net Realized Gain (Loss)		(88,638,582	)
	–––––––––––
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(31,148,741	)
Equity Index Swaps		—
Futures Contracts		4,889,689
Securities Sold Short		—
	–––––––––––
Net Change in Unrealized Appreciation (Depreciation)		(26,259,052	)
	–––––––––––
Net Gain (Loss) on Investments		(114,897,634	)
	–––––––––––
Net Increase (Decrease) in Net Assets from Operations	$	(113,155,469	)
	–––––––––––

* Net of foreign tax withheld of $5,651, $0, $0 and $0, respectively.

See Notes to Financial Statements.

ANNUAL REPORT

107

Year Ended March 31, 2003

Ursa Master			Arktos Master			Juno Master
Portfolio			Portfolio			Portfolio
———–——			————–——			———–——
$	6,492,069		$	2,200,025		$	1,873,716
	—			—			—
	—			—			(3,233,577	)
	—			—			—
	3,104			—			—
––––––––––			––––––––––			––––––––––
	6,495,173			2,200,025			(1,359,861	)
––––––––––			––––––––––			––––––––––
	3,997,936			1,367,917			686,240
	179,184			61,237			30,611
––––––––––			––––––––––			––––––––––
	4,177,120			1,429,154			716,851
––––––––––			––––––––––			––––––––––
	2,318,053			770,871			(2,076,712	)
––––––––––			––––––––––			––––––––––
	2,134,957			3,696,858			(51,312	)
	—			24,108,490			—
	68,329,634			(7,958,919	)		(3,067,013	)
	—			—			(6,119,436	)
––––––––––			––––––––––			––––––––––
	70,464,591			19,846,429			(9,237,761	)
––––––––––			––––––––––			––––––––––
	(1,042,249	)		(9,695	)		(1,890	)
	—		(10,473,230		)		—
	(3,950,428	)		16,219			(837,785	)
	—			—			1,455,140
––––––––––			––––––––––			––––––––––
	(4,992,677	)	(10,466,706		)		615,465
––––––––––			––––––––––			––––––––––
	65,471,914			9,379,723			(8,622,296	)
––––––––––			––––––––––			––––––––––
$	67,789,967		$	10,150,594		$	(10,699,008	)
––––––––––			––––––––––			––––––––––

108

STATEMENTS OF CHANGES IN NET ASSETS

	Nova Master Portfolio
	—–––––––––––––——––––——————
	Year			Period
	Ended			Ended
	March 31,			March 31,
	2003			2002*
	——————			——————
FROM OPERATIONS
Net Investment Income (Loss)	$	1,742,165		$	1,985,920
Net Realized Gain (Loss) on Investments		(88,638,582	)		(4,258,776	)
Net Change in Unrealized Appreciation
(Depreciation) of Investments		(26,259,052	)		(10,959,551	)
	—–—–––––——			—–—–––––———
Net Increase (Decrease) in Net Assets from Operations		(113,155,469	)		(13,232,407	)
	—–—–––––——			—–—–––––———
Distributions to Shareholders from: (Note 1)
Net Investment Income		(1,743,024	)		(2,079,171	)
	—–—–––––——			—–—–––––———
Share Transactions
Net Proceeds from Shares Purchased	1,149,165,455				2,492,803,421
Net Value of Shares Purchased through
Dividend Reinvestment		1,048,100			1,258,745
Net Cost of Shares Redeemed	(1,156,513,695		)	(2,186,758,995		)
	—–—–––––——			—–—–––––———
Net Increase (Decrease) in Net Assets
From Share Transactions		(6,300,140	)		307,303,171
	—–—–––––——			—–—–––––———
Net Increase (Decrease) in Net Assets	(121,198,633		)		291,991,593
Net Assets—Beginning of Period		291,991,593			—
	—–—–––––——			—–—–––––———
Net Assets—End of Period	$	170,792,960		$	291,991,593
	—–—–––––——			—–—–––––———
Transactions in shares
Shares Purchased		34,699,740			28,762,471
Shares Purchased through Reinvestment		30,491			28,831
	—–—–––––——			—–—–––––———
Total Purchased		34,730,231			28,791,302
Shares Redeemed		(34,939,290	)		(22,353,887	)
	—–—–––––——			—–—–––––———
Net Shares Purchased (Redeemed)		(209,059	)		6,437,415
	—–—–––––——			—–—–––––———

* Since the commencement of operations:August 1, 2001–Nova Master Portfolio.

See Notes to Financial Statements.

ANNUAL REPORT

109

	Ursa		Master Portfolio			Arktos			Master Portfolio			Juno			Master Portfolio
—––———––––———————						—––———––––————————						—––———––––——————
Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended
March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
2003			2002			2003			2002			2003			2002
——————			——————			——————			——————			——————			––—————
$	2,318,053		$	4,559,620		$	770,871		$	1,417,849		$ (2,076,712		)	$	267,412
	70,464,591			(1,502,657	)		19,846,429			37,221,044			(9,237,761	)		714,932
	(4,992,677	)		(8,175,788	)		(10,466,706	)		(48,147,664	)		615,465			724,234
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	67,789,967			(5,118,825	)		10,150,594			(9,508,771	)		(10,699,008	)		1,706,578
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	(2,319,041	)		(4,619,888	)		(28,000,000	)		(3,110,808	)		—			(268,982	)
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
1,741,880,149				830,142,512			527,229,704			413,782,672			853,252,982			136,103,931
	2,454,899			5,404,592			—			3,261,341			—			164,462
(1,509,228,411		)		(822,363,933	)		(476,161,977	)		(367,414,976	)		(685,690,416	)		(117,018,421	)
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	235,106,637			13,183,171			51,067,727			49,629,037			167,562,566			19,249,972
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	300,577,563			3,444,458			33,218,321			37,009,458			156,863,558			20,687,568
	228,484,928			225,040,470			115,928,527			78,919,069			33,104,776			12,417,208
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
$	529,062,491		$	228,484,928		$	149,146,848		$	115,928,527		$	189,968,334		$	33,104,776
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	22,308,516			12,640,937			5,251,475			4,867,591			22,026,488			3,060,768
	31,665			84,011			——			35,768			——			3,590
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	22,340,181			12,724,948			5,251,475			4,903,359			22,026,488			3,064,358
	(19,348,123	)		(12,638,559	)		(4,931,561	)		(4,360,508	)		(17,656,209	)		(2,622,190	)
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————
	2,992,058			86,389			319,914			542,851			4,370,279			442,168
–––––——–——			–––—————			—–––————			–——————			—–—————			–—–––————

110

FINANCIAL HIGHLIGHTS

	Nova Master
	Portfolio
	—––——–––––—––––——————
			Year		Period
			Ended				Ended
	March 31,				March 31,
			2003				2002*
	——––––———				—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period		$	45.36			$	50.00
	—––—–———				—––—–———
Net Investment Income			.31				.34
Net Realized and Unrealized Gains
(Losses) on Securities		(17.94		)			(4.62	)
	—––—–———				—––—–———
Net Increase (Decrease) in Net Asset Value
Resulting from Operations		(17.63		)			(4.28	)
Distributions to Feeder Funds:
From Net Investment Income			(.31	)			(.36	)
	—––—–———				—––—–———
Net Increase (Decrease) in Net Asset Value		(17.94		)			(4.64	)
	—––—–———				—––—–———
Net Asset Value—End of Period		$	27.42			$	45.36
Total Investment Return	(38.94			)%		(8.54		)%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses		0.79		%	0.86			%**
Net Expenses		0.79		%	0.86			%**
Net Investment Income		0.91		%	0.69			%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***			603	%			401	%
Net Assets, End of Period (000’s omitted)	$	170,793			$	291,992

*	Since the commencement of operations:August 1, 2001—Nova Master Portfolio;April 1, 2000—Ursa Master Portfolio.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.The Ursa Master Portfolio typically holds most of its investments in options and futures contracts which are deemed short-term securities.
See Notes to Financial Statements.

ANNUAL REPORT

111

					Ursa Master Portfolio
—––———–––––––––––––––––––––––––——————
Year					Year		Period
Ended			Ended				Ended
March 31,			March 31,				March 31,
2003					2002		2001*
—––––————			—————				—–––——
$	64.57			$	65.19		$	49.71
—––————			—–––————				—––————
	.46				1.22			2.80
	16.44				(.35	)		15.50
—––————			—–––————				—––————
	16.90				.87			18.30
	(.46	)			(1.49	)		(2.82	)
—––————			—–––————				—––————
	16.44				(.62	)		15.48
—––————			—–––————				—––————
$	81.01			$	64.57		$	65.19
26.21		%		1.37		%	38.06		%
0.94		%		0.94		%	0.95		%**
0.94		%		0.94		%	0.95		%**
0.52		%		1.90		%	5.11		%**
	—				—			—
$	529,062		$	228,485			$	225,040

112

FINANCIAL HIGHLIGHTS (concluded)

	Arktos Master Portfolio
	————–––––––––––––––––––––––————————
	Year					Year		Period
	Ended			Ended				Ended
	March 31,			March 31,				March 31,
	2003					2002		2001*
	—————			—————				—————
PER SHARE OPERATING PERFORMANCE:
Net Asset Value—Beginning of Period	$	85.18			$	96.47		$	53.67
	—————			—————				—————
Net Investment Income (Loss)		6.71				1.37			3.70
Net Realized and Unrealized Gains
(Losses) on Securities		16.02				(8.93	)		42.92
	—————			—————				—————
Net Increase (Decrease) in Net Asset Value
Resulting from Operations		22.73				(7.56	)		46.62
Distributions to Feeder Funds:
From Net Investment Income	(19.18		)			(3.73	)		(3.82	)
	—————			—————				—————
Net Increase (Decrease) in Net Asset Value		3.55			(11.29		)		42.80
	—————			—————				—————
Net Asset Value—End of Period	$	88.73			$	85.18		$	96.47
Total Investment Return	20.95		%		(8.03		)%	91.61		%
RATIOS TO AVERAGE NET ASSETS
Gross Expenses	0.94		%			0.94	%	0.96		%**
Net Expenses	0.94		%			0.94	%	0.95		%**
Net Investment Income (Loss)	0.51		%			1.63	%	6.58		%**
SUPPLEMENTARY DATA:
Portfolio Turnover Rate***		—				—		1,788		%
Net Assets, End of Period (000’s omitted)	$	149,147		$		115,929		$	78,919

*	Since the commencement of operations:April 1, 2000—Arktos Master Portfolio and Juno Master Portfolio.
**	Annualized
***	Portfolio turnover ratio is calculated without regard to short-term securities having a maturity of less than one year.The Arktos Master Portfolio and the Juno Master Portfolio typically hold most of their investments in options and futures contracts which are deemed short-term securities.
See Notes to Financial Statements.

ANNUAL REPORT

113

Juno Master Portfolio
————––––––––––––––––––––––––————————
		Year				Year		Period
Ended				Ended				Ended
March 31,				March 31,				March 31,
		2003				2002		2001*
—————				—————				—————
	$	46.25			$	45.39		$	49.91
—————				—————				—————
		(.41	)			.69			2.72
		(8.49	)			1.14			(4.45	)
—————				—————				—————
		(8.90	)			1.83			(1.73	)
		—				(.97	)		(2.79	)
—————				—————				—————
		(8.90	)			.86			(4.52	)
—————				—————				—————
	$	37.35			$	46.25		$	45.39
(19.24			)%		4.12		%	(3.67		)%
	0.94		%		0.93		%	0.94		%**
	0.94		%		0.93		%	0.94		%**
	(2.72		)%		1.61		%	5.04		%**
		—				—			—
	$189,968				$33,105			$	12,417

114

NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies

The Rydex Series Funds (the “Trust”) is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company, and is authorized to issue an unlimited number of shares.The Trust offers five separate classes of shares, Investor Class Shares, Advisor Class Shares, H Class Shares, C Class Shares and Institutional Class Shares. Sales of shares of each Class are made without a sales charge at the net asset value per share. C Class Shares have a 1% Contingent Deferred Sales Charge (“CDSC”) if Shares are redeemed within 12 months of purchase. At March 31, 2003, the Trust consisted of thirty-four separate series: fourteen Benchmark Funds, one Money Market Fund, seventeen Sector Funds, and two Strategic Funds.This report covers the fourteen Benchmark Funds and the Money Market Fund (the “Funds”), while the Sector Funds and the Strategic Funds are contained in separate reports.

The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America and are consistently followed by the Trust.

A. Securities listed on an exchange are valued at the last quoted sales price as of close of business on the New York Stock Exchange, usually 4:00 p.m., Eastern Time, on the valuation date. Securities not traded on an exchange are valued at their last sales price. Listed options held by the Trust are valued at their last bid price. Over-the-counter options held by the Trust are valued using the average bid price obtained from one or more security dealers.The value of futures contracts purchased and sold by the Trust are accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the last quoted sales price as of 4:00 p.m. on the valuation date. Short-term securities, if any, are valued at amortized cost, which approximates market value. Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under direction of the Board of Trustees or by the Advisor using methods established or ratified by the Board of Trustees.The shares of the Master Portfolios held by the Feeder Funds are valued at their respective daily Net Asset Value.

B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis.

C. Net investment income is computed and dividends are declared daily in the U.S. Government Bond Fund and the U.S. Government Money Market Fund. Income dividends in these funds are paid monthly. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income in the remaining Benchmark Funds and distributions of net realized capital gains in all funds are

ANNUAL REPORT

115

NOTES TO FINANCIAL STATEMENTS(continued)

recorded on the ex-dividend date. Distributions from net investment income and net realized capital gains are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States.These differences are primarily due to differing treatments for items such as deferral of wash sales and post-October losses and regulated futures contracts and options.

D. When a Fund engages in a short sale, an amount equal to the proceeds is reflected as an asset and an equivalent liability.The amount of the liability is subsequently marked to market to reflect the market value of the short sale.The Fund maintains a segregated account of securities as collateral for short sales.The Fund is exposed to market risk based on the amount, if any, that the market value of the stock exceeds the market value of the securities in the segregated account.

E. Upon the purchase of an option by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily.When a purchased option expires, the Fund will realize a loss in the amount of the cost of the option.When a fund enters into a closing sale transaction, the Fund will realize a gain or loss depending on whether the proceeds from the closing sale transaction are greater or less than the cost of the option.When a Fund exercises a put option, it will realize a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid.When a Fund exercises a call option, the cost of the security that the Fund purchases upon exercise will be increased by the premium originally paid.When a Fund writes (sells) an option, an amount equal to the premium received is entered in the Trust's accounting records as an asset and equivalent liability.The amount of the liability is subsequently marked to market to reflect the current value of the option written.When an option expires or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold).

F. The Fund may purchase or sell stock and bond index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses.When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

G. The Funds may enter into equity index swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified equity security, basket of equity securities, or equity index in return for periodic payments based on a fixed or variable interest rate or the change in

116

NOTES TO FINANCIAL STATEMENTS(continued)

market value of a different equity security, basket of equity securities, or equity index. Swap agreements are used to obtain exposure to an equity or market without owning or taking physical custody of securities.

H. Segregated Cash with Broker is held as collateral for investments in derivative instruments such as futures contracts and equity index swap agreements.

I. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the discount rates paid at the time of purchase by the fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

J. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees relating to Advisor Class Shares and H Class Shares and service and distribution fees related to C Class Shares, are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis based upon the respective aggregate net assets value of each Fund included in the Trust.

K. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

2. Financial Instruments

As part of its investment strategy, the Trust may utilize a variety of derivative instruments, including options, futures, options on futures and swap agreements.These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

The risk associated with purchasing options is limited to the premium originally paid. Options written by a fund involve, to varying degrees, risk of loss in excess of the option value reflected in the Statement of Assets and Liabilities.The risk in writing a covered call option is that a fund may forego the opportunity for profit if the market price of the underlying security increases and the option is exercised.The risk in writing a covered put option is that a fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is the risk that a fund may not be able to enter into a closing transaction because of an illiquid secondary market or, for over-the-counter options, because of the counterparty’s inability to perform.The Trust has established strict counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better.

ANNUAL REPORT

117

NOTES TO FINANCIAL STATEMENTS(continued)

There are several risks in connection with the use of futures contracts. Futures contracts involve, to varying degrees, risk of loss in excess of amounts reflected in the financial statements. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a fund may not be able to enter into a closing transaction because of an illiquid secondary market.

The use of equity swaps involves risks that are different from those associated with ordinary portfolio securities transactions. Swap agreements may be considered to be illiquid. Although a fund will not enter into any swap agreement unless the Advisor believes that the other party to the transaction is creditworthy, a fund does bear the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of the agreement counterparty.The Trust has established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better.

In conjunction with the use of options, futures, options on futures and swap agreements, as well as short sales of securities, the Funds are required to maintain collateral in various forms.The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash segregated at the custodian bank, or the repurchase agreements allocated to each Fund.

The risks inherent in the use of options, futures contracts, options on futures contracts, and swap agreements include 1) adverse changes in the value of such instruments; 2) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; 3) the possible absence of a liquid secondary market for any particular instrument at any time; and 4) the potential of counterparty default.

3. Master-Feeder Arrangement

Currently, the Nova Fund, the Ursa Fund, the Juno Fund, and the Arktos Fund are operating under a “master-feeder arrangement.” Under a master-feeder arrangement, a Fund invests substantially all of its assets in the Master Portfolio, a separate open-end investment company that has the same investment objectives as the Fund, e.g., the Nova Fund would act as a “feeder fund,” holding shares of its Master Portfolio as its only investment. As a result, the Fund has an indirect interest in all of the securities owned by the Master Portfolio. Because of this indirect interest, the Fund’s investment returns should be the same as those of its Master Portfolio, adjusted for Fund expenses.The financial statements of the Master Portfolios, including the Schedule of Investments, are included in this report and should be read with the Funds’ financial statements.The percentage of Nova Master Portfolio, Ursa Master Portfolio, Arktos Master Portfolio, and Juno Master Portfolio owned by the Nova Fund, Ursa Fund, Arktos Fund, and Juno Fund, respectively, at March 31, 2003, was 100 percent.The Funds record their investments in the Master Portfolio at fair value.Valuation of securities held by the Master Portfolio is discussed in Note 1, Significant Accounting Policies.

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4. Repurchase Agreements

The Trust transfers uninvested cash balances into a single joint account, along with univested cash of the Rydex Dynamic Funds, a separate trust.The daily aggregate balance of the joint account is invested in one or more repurchase agreements collateralized by obligations of the U. S.Treasury.The collateral is in the possession of the Trusts’ custodians and is evaluated daily to ensure that its market value exceeds the delivery value of the repurchase agreements at maturity.

The repurchase agreements that were executed by the joint account and outstanding as of March 31, 2003 are as follows:

	Terms of	Face		Market		Maturity
Counterparty	Agreement		Value		Value		Value
Lehman Brothers, Inc	1.30% due 4/1/03	$	5,616,137	$	5,616,137	$	5,616,338
Paine Webber, Inc	1.29% due 4/1/03	200,000,000			200,000,000	200,007,167
Salomon Smith Barney, Inc	1.25% due 4/1/03	200,000,000			200,000,000	200,006,944
U.S. Bank NA	1.20% due 4/1/03	200,000,000			200,000,000	200,006,667
				$	605,616,137	$	605,637,116

As of March 31, 2003, the collateral for the repurchase agreements in the joint account was as follows:

Security Type	Range of Rates		Par Value	Market Value
U. S.Treasury Bonds	3.375% - 8.875%	$	209,450,000	$	209,508,652
U. S.Treasury Notes	0.000% - 6.000%		388,767,000		408,252,383
				$	617,761,035

In the event of counterparty default, the Trust has the right to collect the collateral to offset losses incurred.There is potential loss to the Trust in the event the Trust is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Trust seeks to assert its rights.The Trust’s investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the credit worthiness of those banks and dealers with which the Trust enters into repurchase agreements to evaluate potential risks.

5. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays Rydex Global Advisors (the “Advisor”), an affiliated entity, investment advisory fees calculated at an annualized rate of 0.50% of the average daily net assets of the U.S. Government Bond Fund and the U.S. Government Money Market Fund; 0.75% of the average daily net assets of the OTC Fund and the Nova Master Portfolio; and 0.90% of the average daily net assets of the Medius Fund, the Mekros Fund, the Large-Cap Europe Fund, the Large-Cap Japan Fund, the Ursa Master Portfolio, the Arktos Master Portfolio, and the Juno Master Portfolio. For the period ending March 31, 2003, the Advisor voluntarily reimbursed $22,410 of miscellaneous expenses in the Institutional Class of the U.S. Government Money Market

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Fund. Certain officers and trustees of the Trust are also officers and directors of Rydex Global Advisors.

Rydex Fund Services, Inc. (the “Servicer”), an affiliated entity, provides transfer agent services to the Trust for fees calculated at an annualized rate of 0.20% of the average daily net assets of the U.S. Government Bond Fund and the U.S. Government Money Market Fund; and 0.25% of the average daily net assets of the Nova Fund, the Ursa Fund, the OTC Fund, the Arktos Fund, the Medius Fund, the Mekros Fund, the Juno Fund, the Large-Cap Europe Fund, and the Large-Cap Japan Fund. For the period ended March 31, 2003, the Servicer voluntarily waived transfer agent service fees in the amount of $136,420 in the C Class and $45,663 in the Institutional Class of the U.S. Government Money Market.

The Servicer also provides accounting services to the Trust calculated at an annualized rate 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each of the benchmark funds. For the period ended March 31, 2003, the Servicer voluntarily waived accounting fees in the amount of $11,467 in the Institutional Class of the U.S. Government Money Market Fund.

Certain officers and trustees of the Trust are also officers and directors of Rydex Fund Services, Inc.

The Trust has adopted a Distribution and Shareholder Services Plan applicable to Advisor Class Shares and a Distribution Plan applicable to H Class shares for which Rydex Distributors, Inc. (the “Distributor”), an affiliated entity, and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Trust will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act.The Distributor, in turn, will pay the Service Provider out of its fees.The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services. For the period ended March 31, 2003, the Distributor voluntarily waived $123,335 of 12b-1 expenses in the Advisor Class of the U.S. Government Money Market Fund. With regard to Advisor Class Shares only, if a Service Provider provides shareholders services, the Distributor will receive shareholder servicing fees from the Trust at an annual rate not to exceed 0.25% of average daily net assets.The Distributor, in turn, will pay the Service Provider out of its fees.

The Trust has adopted a separate Distribution and Shareholder Services Plan (the “C Class Plan”) applicable to its C Class Shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C Class Shares average daily net assets.The annual 0.25% service fee compensates your financial advisor for providing on-going services to you.The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.The annual 0.75% distribution fee reimburses the Distributor for paying your financial advisor an on-going sales commission.The Distributor advances

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the first year’s service and distribution fees. For the period ended March 31, 2003, the Distributor waived $436,924 of C Class Plan expenses in the C Class of the U.S. Government Money Market Fund.

Certain officers and trustees of the Trust are also officers and directors of Rydex Distributors, Inc.

6. Securities Transactions

During the year ended March 31, 2003, purchases and sales of investment securities, excluding short-term and temporary cash investments, were:

	Nova			Ursa					Arktos
	Master			Master				OTC	Master
	Portfolio			Portfolio				Fund	Portfolio
Purchase	$	999,874,966		$	—	$	1,069,459,049		$	—
Sales	$	1,038,699,366		$	—	$		978,677,554	$	—
								U.S.		Juno
		Medius			Mekros		Government			Master
			Fund		Fund			Bond Fund		Portfolio
Purchases	$	624,882,387		$	275,871,521	$	1,225,207,578		$	—
Sales	$	673,691,999		$	314,435,956	$	1,187,665,471		$	—
								U.S.
		Large-Cap			Large-Cap		Government
		Europe			Japan			Money
			Fund		Fund		Market Fund
Purchases		$	—	$	—		$	—
Sales		$	—	$	—		$	—

7. Federal Income Tax Information

The Trust intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income to its shareholders.Therefore, no Federal income tax provision is required.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America.These differences are primarily due to differing treatments for futures and options transactions, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations.

Permanent book and tax basis differences, if any, relating to shareholder distributions will result in reclassifications to paid-in capital.This includes the utilization of earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes, net operating losses not utilized during the current year, and differences in the treatment of certain notional principal contracts (e.g. financial

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futures contracts).These reclassifications have no effect on net assets or net asset values per share. Any taxable gain remaining at fiscal year end is distributed in the following year.

The tax character of distributions paid between April 1, 2002 and March 31, 2003 was as follows:

			Long-Term		Tax
	Ordinary		Capital		Return of		Total
Fund		Income		Gain	Capital		Distributions
Nova Fund	$	—	$	—	$	—	$	—
Ursa Fund		3,105,267		—		—		3,105,267
OTC Fund		—		—		—		—
Arktos Fund		4,875,617		—		—		4,875,617
Medius Fund		191,571		—		—		191,571
Mekros Fund		—	183,548			—		183,548
U.S. Government
Bond Fund		2,064,223		—		—		2,064,223
Juno Fund		69,427		—		—		69,427
Large-Cap Europe Fund		—		—		—		—
Large-Cap Japan Fund		—		—		—		—
U.S. Government Money
Market Fund		9,520,248		—		—		9,520,248
Nova Master Portfolio		1,743,024		—		—		1,743,024
Ursa Master Portfolio		2,319,041		—		—		2,319,041
Arktos Master Portfolio		28,000,000		—		—		28,000,000
Juno Master Portfolio		—		—		—		—

The tax character of distributions paid between April 1, 2001-March 31,2002 was as follows:

					Tax
	Ordinary		Long-Term		Return of		Total
Fund		Income	Capital Gain		Capital		Distributions
Nova Fund	$	1,331,345	$	—	$	—	$	1,331,345
Ursa Fund		894,519		—		—		894,519
OTC Fund		—		—		—		—
Arktos Fund		825,000		—		—		825,000
Medius Fund		—		—		—		—
Mekros Fund		—		—		—		—
U.S. Government Bond Fund		1,791,021		—		—		1,791,021
Juno Fund		—		—		—		—
Large-Cap Europe Fund		—		—		—		—
Large-Cap Japan Fund		—		—		—		—
U.S. Government Money Market Fund		28,392,132		—	70,141			28,462,273
Nova Master Portfolio		2,079,171		—		—		2,079,171
Ursa Master Portfolio		4,619,888		—		—		4,619,888
Arktos Master Portfolio		3,110,808		—		—		3,110,808
Juno Master Portfolio		268,982		—		—		268,982

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The tax character of distributable earnings/(accumulated losses) at March 31, 2003 was a follows:

			Undistributed
	Undistributed		Realized Gain/			Net Unrealized			Capital
	Ordinary		(Accumulated			Appreciation/			Loss
Fund		Income		Loss)		(Depreciation)			Carryforward
Nova Fund	$	59,012	$	(9,494,144	)	$	(97,936,262	)	$	9,494,144	1
Ursa Fund	13,674,228			2,861,109			(13,489,393	)		—
OTC Fund		—		(685,704,575	)		(127,616,112	)		685,704,575	2
Arktos Fund		—		—			(56,393,825	)		—
Medius Fund		—		(8,321,532	)		(3,241,011	)		8,321,532	1
Mekros Fund		—		(10,992,577	)		(4,194,875	)		10,992,577	1
U.S. Government
Bond Fund		187,679		(6,781,083	)		(1,883,559	)		6,781,083	2
Juno Fund		—		(180,122	)		(10,029,743	)		180,122	1
Large-Cap Europe Fund		—		29,491			—			—
Large-Cap Japan Fund		—		(361,164	)		—			361,164	2
U.S. Government Money
Market Fund		15,896		(466,240	)		—			466,240	2
Nova Master Portfolio		852		(275,809,645	)		(7,056,521	)		275,809,645	2
Ursa Master Portfolio		—		(372,176,624	)		(974,193	)		372,176,624	2
Arktos Master Portfolio		—		(118,048,050	)		(349,178	)		118,048,050	2
Juno Master Portfolio		—		(10,450,320	)		(6,410,099	)		10,450,320	2

Differences between total distributable earnings (accumulated losses) on a tax basis and on a book basis are due to post-October losses, wash sales, and dividends payable.

All amounts expire on March 31st of the year indicated unless otherwise noted.

1	Expires in 2011
2	OTC Fund: $383,452,643 expires in 2010, $302,251,932 expires in 2011
U.S. Government Bond Fund: $4,709,127 expires in 2008, $378,399 expires in 2010, $1,693,557 expires in 2011
Large-Cap Japan Fund: $19,552 expires in 2009, $341,612 expires in 2011
U.S. Government Money Market Fund: $342,237 expires in 2008, $124,003 expires in 2009
Nova Master Portfolio: $68,501,609 expires in 2008, $100,261,487 expires 7/31/09, $41,531,696 expires in 2010, $65,514,853 expires in 2011
Ursa Master Portfolio: $42,864,695 expires in 2005, $102,945,587 expires in 2006, $102,218,150 expires in 2007, $124,148,192 expires in 2008
Arktos Master Portfolio: $57,832,849 expires in 2008, $60,215,201 expires in 2009
Juno Master Portfolio: $1,407,527 expires in 2004, $106,438 expires in 2005, $2,486,456 expires in 2006, $1,206,560 expires in 2007,
$1,582,486 expires in 2009, $3,660,853 expires in 2011

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Tax Basis Unrealized Gain (Loss) on Investments and Distributions

At March 31, 2003, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund		Cost		Gain		Loss			Loss
Nova Fund	$	268,729,222	$	—	$	(97,936,262	)	$	(97,936,262	)
Ursa Fund		542,551,884		—		(13,489,393	)		(13,489,393	)
OTC Fund		830,097,374		—	(127,616,112		)	(127,616,112		)
Arktos Fund		205,540,673		—		(56,393,825	)		(56,393,825	)
Medius Fund		21,341,572		—		(3,241,011	)		(3,241,011	)
Mekros Fund		55,986,397		—		(4,194,875	)		(4,194,875	)
U.S. Government
Bond Fund		55,676,301		—		(1,883,559	)		(1,883,559	)
Juno Fund		199,998,077		—		(10,029,743	)		(10,029,743	)
Large-Cap Europe Fund		3,999,200		—		—			—
Large-Cap Japan Fund		1,999,633		—		—			—
U.S. Government Money
Market Fund	1,627,317,149			—		—			—
Nova Master Portfolio		178,619,007		668,855		(7,725,376	)		(7,056,521	)
Ursa Master Portfolio		502,841,677		—		(974,193	)		(974,193	)
Arktos Master Portfolio		157,217,371		—		(349,178	)		(349,178	)
Juno Master Portfolio		404,469,092		—		(6,410,099	)		(6,410,099	)
8. Share Transactions

The Trust is authorized to distribute an unlimited number of shares.Transactions in shares for the year ended March 31, 2003 were:

Investor Class:
	Nova		Ursa		OTC		Arktos
	Fund		Fund		Fund		Fund
Shares Purchased	83,857,036		222,974,131		247,268,777		28,728,910
Purchased through Dividend
Reinvestment	—		212,405		—		111,034
Total Purchased	83,857,036		223,186,536		247,268,777		28,839,944
Shares Redeemed	(84,123,194	)	(207,588,037	)	(231,234,240	)	(28,492,265	)
Net Shares Purchased
(Redeemed)	(266,158	)	15,598,499		16,034,537		347,679

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					U.S.
	U.S.				Government
	Government		Juno		Money
	Bond Fund		Fund		Market Fund
Shares Purchased	162,319,402		137,819,143		24,111,170,364
Purchased through Dividend
Reinvestment	188,040		7,556		8,020,358
Total Purchased	162,507,442		137,826,699		24,119,190,722
Shares Redeemed	(159,368,511	)	(135,422,806	)	(23,879,948,615	)
Net Shares Purchased	3,138,931		2,403,893		239,242,107
Advisor Class:
	Nova		Ursa		OTC
	Fund		Fund		Fund
Shares Purchased	29,792,440		26,350,006		81,322,305
Purchased through Dividend
Reinvestment	—		6,853		—
Total Purchased	29,792,440		26,356,859		81,322,305
Shares Redeemed	(30,368,140	)	(23,921,007	)	(77,014,920	)
Net Shares Purchased
(Redeemed)	(575,700	)	2,435,852		4,307,385
	U.S.
	Government
	Money
	Market Fund
Shares Purchased	5,729,683,870
Purchased through Dividend
Reinvestment	1,040,724
Total Purchased	5,730,724,594
Shares Redeemed	(5,914,567,833	)
Net Shares Redeemed	(183,843,239	)

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H Class:
	Medius		Mekros		Large-Cap		Large-Cap
	Fund		Fund		Europe Fund		Japan Fund
Shares Purchased	93,819,644		115,322,173		37,130,484		39,736,495
Purchased through Dividend
Reinvestment	9,265		11,733		—		—
Total Purchased	93,828,909		115,333,906		37,130,484		39,736,495
Shares Redeemed	(97,371,579	)	(118,163,700	)	(37,288,995	)	(41,941,104	)
Net Shares Redeemed	(3,542,670	)	(2,829,794	)	(158,511	)	(2,204,609	)
C Class:
	Nova		Ursa		OTC		Arktos
	Fund		Fund		Fund		Fund
Shares Purchased	11,268,899		16,643,783		11,462,178		2,077,755
Purchased through Dividend
Reinvestment	—		5,170		—		1,928
Total Purchased	11,268,899		16,648,953		11,462,178		2,079,683
Shares Redeemed	(10,847,905	)	(15,955,243	)	(10,601,971	)	(2,069,791	)
Net Shares Purchased	420,994		693,710		860,207		9,892
					U.S.
	Medius		Mekros		Government		Juno
	Fund		Fund		Bond Fund		Fund
Shares Purchased	6,276,724		15,463,918		2,371,414		9,481,230
Purchased through Dividend
Reinvestment	1,123		663		3,299		994
Total Purchased	6,277,847		15,464,581		2,374,713		9,482,224
Shares Redeemed	(5,990,604	)	(15,320,356	)	(2,200,459	)	(6,662,145	)
Net Shares Purchased	287,243		144,225		174,254		2,820,079
					U.S.
					Government
	Large-Cap		Large-Cap		Money
	Europe Fund		Japan Fund		Market Fund
Shares Purchased	2,342,639		653,824		2,555,257,130
Purchased through Dividend
Reinvestment	—		—		80,795
Total Purchased	2,342,639		653,824		2,555,337,925
Shares Redeemed	(2,149,285	)	(653,699	)	(2,401,512,601	)
Net Shares Purchased	193,354		125		153,825,324

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Institutional Class:
	U.S.
	Government
	Money
	Market Fund
Shares Purchased	70,000,000
Purchased through Dividend
Reinvestment	63,341
Total Purchased	70,063,341
Shares Redeemed	(10,055,171)
Net Shares Purchased	60,008,170

Transactions in shares for the period ended March 31, 2002 were:

Investor Class:
	Nova		Ursa		OTC		Arktos
	Fund		Fund		Fund		Fund
Shares Purchased	53,147,311		138,465,884		172,745,458		28,052,748
Purchased through Dividend
Reinvestment	18,020		77,888		—		25,529
Total Purchased	53,165,331		138,543,772		172,745,458		28,078,277
Shares Redeemed	(53,832,665	)	(139,400,414	)	(188,907,194	)	(26,761,028	)
Net Shares Purchased
(Redeemed)	(667,334	)	(856,642	)	(16,161,736	)	1,317,249
					U.S.
	U.S.				Government
	Government		Juno		Money
	Bond Fund		Fund		Market Fund
Shares Purchased	57,714,051		81,633,543		19,898,018,513
Purchased through Dividend
Reinvestment	176,342		—		20,113,207
Total Purchased	57,890,393		81,633,543		19,918,131,720
Shares Redeemed	(64,552,778	)	(74,401,464	)	(19,886,982,563	)
Net Shares Purchased
(Redeemed)	(6,662,385	)	7,232,079		31,149,157

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Advisor Class:
							U.S.
							Government
	Nova		Ursa		OTC		Money
	Fund		Fund		Fund		Market Fund
Shares Purchased	15,230,936		15,676,776		22,638,166		7,806,116,037
Purchased through Dividend
Reinvestment	3,762		3,291		—		7,622,995
Total Purchased	15,234,698		15,680,067		22,638,166		7,813,739,032
Shares Redeemed	(14,310,345	)	(15,270,621	)	(23,883,483	)	(7,894,183,817	)
Net Shares Purchased
(Redeemed)	924,353		409,446		(1,245,317	)	(80,444,785	)

H Class:
					Large-Cap		Large-Cap
	Medius		Mekros		Europe		Japan
	Fund		Fund		Fund		Fund
Shares Purchased	37,861,117		144,467,886		19,084,730		19,934,285
Purchased through Dividend
Reinvestment	—		—		—		—
Total Purchased	37,861,117		144,467,886		19,084,730		19,934,285
Shares Redeemed	(33,406,268	)	(140,993,430	)	(19,013,984	)	(18,428,031	)
Net Shares Purchased	4,454,849		3,474,456		70,746		1,506,254
C Class:
	Nova		Ursa		OTC		Arktos
	Fund		Fund		Fund		Fund
Shares Purchased	2,835,095		6,016,561		2,144,994		352,455
Purchased through Dividend
Reinvestment	430		155		—		112
Total Purchased	2,835,525		6,016,716		2,144,994		352,567
Shares Redeemed	(2,430,116	)	(5,343,171	)	(1,794,212	)	(290,675	)
Net Shares Purchased	405,409		673,545		350,782		61,892
					U.S.
					Government
	Medius		Mekros		Bond		Juno
	Fund		Fund		Fund		Fund
Shares Purchased	713,966		2,431,504		335,907		1,173,339
Purchased through Dividend
Reinvestment	—		—		920		—
Total Purchased	713,966		2,431,504		336,827		1,173,339
Shares Redeemed	(647,252	)	(1,514,427	)	(313,941	)	(1,470,669	)
Net Shares Purchased
(Redeemed)	66,714		917,077		22,886		(297,330	)

128

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (continued)

					U.S.
	Large-Cap		Large-Cap		Government
	Europe		Japan		Money
	Fund		Fund		Market Fund
Shares Purchased	12,532		8,604		475,639,261
Purchased through Dividend
Reinvestment	—		—		612,365
Total Purchased	12,532		8,604		476,251,626
Shares Redeemed	(4,894	)	(7,288	)	(465,846,148	)
Net Shares Purchased	7,638		1,316		10,405,478

Transactions in dollars for the period ended March 31, 2003 were:

Investor Class:
	Nova					Ursa				OTC		Arktos
	Fund					Fund				Fund		Fund
Shares Purchased	$	1,550,454,716		$		2,830,116,550		$	1,802,548,833			$	1,170,064,405
Purchased through Dividend
Reinvestment		—				2,695,421				—			4,404,716
Total Purchased	1,550,454,716			2,832,811,971					1,802,548,833				1,174,469,121
Shares Redeemed	(1,556,893,272		)	(2,638,186,951			)	(1,687,027,469			)	(1,146,919,802		)
Net Change	$	(6,438,556	)	$	194,625,020			$		115,521,364		$	27,549,319
		U.S.								U.S.
		Government								Government
		Bond				Juno				Money
		Fund				Fund				Market Fund
Shares Purchased	$	1,671,834,178		$	1,251,087,583				$	24,111,170,705
Purchased through Dividend
Reinvestment		1,941,577				56,144				8,020,358
Total Purchased	1,673,775,755				1,251,143,727					24,119,191,063
Shares Redeemed	(1,637,318,037		)	(1,144,688,438			)		(23,879,948,617)
Net Change	$	36,457,718			$	106,455,289			$	239,242,446
Advisor Class:
		Nova				Ursa				OTC
		Fund				Fund				Fund
Shares Purchased	$	535,977,096		$	330,276,923				$	566,145,734
Purchased through Dividend
Reinvestment		—				84,699				—
Total Purchased		535,977,096			330,361,622					566,145,734
Shares Redeemed		(545,080,007	)		(297,274,153		)		(532,874,518		)
Net Change	$	(9,102,911	)	$		33,087,469			$	33,271,216

ANNUAL REPORT

129

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (continued)

	U.S.
	Government
	Money
	Market Fund
	——–––––———
Shares Purchased	$	5,729,683,870
Purchased through Dividend
Reinvestment		1,040,724
	——–––––———
Total Purchased	5,730,724,594
Shares Redeemed		(5,914,567,833	)
	——–––––———
Net Change	$	(183,843,239	)
	——–––––———
H Class:
									Large-Cap			Large-Cap
		Medius				Mekros			Europe			Japan
		Fund				Fund			Fund			Fund
		——–––———			——–––———				——–––———			——–––———
Shares Purchased	$	1,945,416,153		$		1,940,304,439		$	444,767,939		$	323,446,400
Purchased through Dividend
Reinvestment		163,432				170,244			—			—
		——–––———			——–––———				——–––———			——–––———
Total Purchased	1,945,579,585				1,940,474,683				444,767,939			323,446,400
Shares Redeemed	(2,022,196,977		)		(1,992,763,899		)	(441,951,114		)	(337,144,368		)
		——–––———			——–––———				——–––———			——–––———
Net Change	$	(76,617,392	)		$	(52,289,216	)	$	2,816,825		$	(13,697,968	)
		——–––———			——–––———				——–––———			——–––———
C Class:
		Nova				Ursa			OTC			Arktos
		Fund				Fund			Fund			Fund
		——–––———			——–––———				——–––———			——–––———
Shares Purchased	$	199,531,214		$		207,245,885		$	80,542,738		$	82,697,464
Purchased through Dividend
Reinvestment		—				64,474			—			74,919
		——–––———			——–––———				——–––———			——–––———
Total Purchased		199,531,214			207,310,359				80,542,738			82,772,383
Shares Redeemed		(190,906,083	)		(197,104,992		)		(74,793,804	)		(81,654,290	)
		——–––———			——–––———				——–––———			——–––———
Net Change	$	8,625,131		$		10,205,367		$	5,748,934		$	1,118,093
		——–––———			——–––———				——–––———			——–––———
									U.S.
								Government
		Medius				Mekros			Bond			Juno
		Fund				Fund			Fund			Fund
		——–––———			——–––———				——–––———			——–––———
Shares Purchased	$	118,906,006		$		231,755,936		$	25,084,987		$	109,619,631
Purchased through Dividend
Reinvestment		19,612				9,480			35,384			7,287
		——–––———			——–––———				——–––———			——–––———
Total Purchased		118,925,618				231,765,416			25,120,371			109,626,918
Shares Redeemed		(112,097,599	)		(234,108,252		)		(23,220,202	)		(48,058,380	)
		——–––———			——–––———				——–––———			——–––———
Net Change	$	6,828,019		$		(2,342,836	)	$	1,900,169		$	61,568,538
		——–––———			——–––———				——–––———			——–––———

130

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (continued)

							U.S.
	Large-Cap			Large-Cap			Government
	Europe			Japan			Money
	Fund			Fund			Market Fund
	——–––––———			——–––––———			——–––––———
Shares Purchased	$	26,738,406		$	5,902,412		$	2,555,257,130
Purchased through Dividend
Reinvestment		—			—			80,795
	——–––———			——–———				——–––––———
Total Purchased		26,738,406			5,902,412			2,555,337,925
Shares Redeemed		(24,610,760	)		(5,745,360	)	(2,401,512,601		)
	——–––———			——–———				——–––––———
Net Change	$	2,127,646		$	157,052		$	153,825,324
	——–––———			——––––——				——–––––———

Institutional Class:
	U.S.
	Government
	Money
	Market Fund
	——–––––———
Shares Purchased	$	70,000,000
Purchased through Dividend
Reinvestment		63,341
	——––––––——
Total Purchased		70,063,341
Shares Redeemed		(10,055,171	)
	——––––––——
Net Change	$	60,008,170
		——–––––——

Transactions in dollars for the period ended March 31, 2002 were:

Investor Class:
	Nova			Ursa			OTC			Arktos
	Fund			Fund			Fund			Fund
	——–––––———			——–––––———			——–––––———			——–––––———
Shares Purchased	$	1,332,793,252		$	1,465,189,474		$	1,934,886,728		$	903,594,188
Purchased through Dividend
Reinvestment		457,708			810,811			—			766,387
	——–––––———			——–––––———			——–––––———			—–––––––———
Total Purchased		1,333,250,960			1,466,000,285			1,934,886,728			904,360,575
Shares Redeemed		(1,341,199,555	)		(1,468,298,786	)		(2,091,903,641	)		(858,824,126	)
	——–––––———			——–––––———			——–––––———			—–––––––———
Net Change	$	(7,948,595	)	$	(2,298,501	)	$	(157,016,913	)	$	45,536,449
	——–––––———			——–––––———			——–––––———			——–––––———

							U.S.
	U.S.						Government
	Government			Juno			Money
	Bond Fund			Fund			Market Fund
	——–––––———			——–––––———			———–––––———
Shares Purchased	$	559,291,121		$	229,772,405		$	19,898,018,513
Purchased through Dividend
Reinvestment		1,714,010			—			20,113,207
	——–––––———			——–––––———			———–––––———
Total Purchased		561,005,131			229,772,405			19,918,131,720
Shares Redeemed		(624,171,757	)		(209,816,777	)		(19,886,982,563	)
	——–––––———			——–––––———			———–––––———
Net Change	$	(63,166,626	)	$	19,955,628		$	31,149,157
	——–––––———			——–––––———			———–––––———

ANNUAL REPORT

131

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (continued)

Advisor Class:
													U.S.
											Government
	Nova			Ursa					OTC				Money
	Fund			Fund					Fund		Market Fund
	——–––––———			——–––––———			——–––––———				——–––––———
Shares Purchased	$	374,592,229		$	161,807,621		$	251,533,610			$	7,806,116,038
Purchased through Dividend
Reinvestment		94,056			33,567				—					7,622,995
	——––––———			——––––———			——––––———					———––––———
Total Purchased		374,686,285			161,841,188			251,533,610				7,813,739,033
Shares Redeemed		(349,682,229	)	(156,938,944		)		(263,416,080		)		(7,894,183,817			)
	——––––———			——––––———			——––––———					———––––———
Net Change	$	25,004,056		$	4,902,244		$	(11,882,470		)	$		(80,444,784		)
	——–––———			——–––———			——–––———					—––—–––———
H Class:
								Large-Cap						Large-Cap
		Medius			Mekros				Europe					Japan
		Fund			Fund				Fund					Fund
	——–––––———			——–––––———			——–––––———					——–––––———
Shares Purchased	$	906,421,890	$	3,030,863,791			$	303,386,440				$	208,489,852
Purchased through Dividend
Reinvestment		—			—				—					—
	——–––––———				——––––––———		——–––––———					——–––––———
Total Purchased		906,421,890		3,030,863,791				303,386,440					208,489,852
Shares Redeemed	(795,010,354		)		(2,947,285,576	)		(300,924,005		)			(195,850,164		)
	——–––––———				——––––––———		——–––––———					——–––––———
Net Change	$	111,411,536	$		83,578,215		$		2,462,435			$		12,639,688
	——–––––———				——––––––———		——–––––———					——–––––———
C Class:
		Nova			Ursa				OTC					Arktos
		Fund			Fund				Fund					Fund
	——–––––———			——–––––———			——–––––———					——–––––———
Shares Purchased	$	70,357,183		$	63,247,587		$		22,332,118				$	11,328,519
Purchased through Dividend
Reinvestment		10,853			1,603				—					3,324
	——–––––———				——––––––———		——–––––———					——–––––———
Total Purchased		70,368,036			63,249,190				22,332,118					11,331,843
Shares Redeemed		(59,837,789	)	(56,162,837		)		(18,334,630		)				(9,323,194	)
	——–––––———				——––––––———		——–––––———					——–––––———
Net Change	$	10,530,247		$	7,086,353		$		3,997,488				$	2,008,649
	——–––––———				——––––––———		——–––––———					——–––––———
									U.S.
							Government
		Medius			Mekros				Bond					Juno
		Fund			Fund				Fund					Fund
	——–––––———			——–––––———			——–––––———					——–––––———
Shares Purchased	$	17,117,782		$	51,476,044			$	3,260,148				$	3,353,687
Purchased through Dividend
Reinvestment		—			—				8,866					—
	——–––––———				——––––––———		——–––––———					——–––––———
Total Purchased		17,117,782			51,476,044				3,269,014					3,353,687
Shares Redeemed		(15,540,273	)	(31,133,597		)			(3,040,129	)				(4,207,788	)
	——–––––———				——––––––———		——–––––———					——–––––———
Net Change	$	1,577,509		$	20,342,447			$	228,885				$	(854,101	)
	——–––––———				——––––––———		——–––––———					——–––––———

132

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (continued)

												U.S.
	Large-Cap						Large-Cap					Government
				Europe					Japan			Money
				Fund					Fund			Market Fund
	——–––––———						——–––––———					——–––––———
Shares Purchased				$	195,263			$	77,054		$	475,764,801
Purchased through Dividend
Reinvestment					—				—				486,826
		——–––––———					——––––––———					——–––––———
Total Purchased					195,263				77,054			476,251,627
Shares Redeemed					(74,625	)			(67,209	)		(465,846,149		)
		——–––––———					——––––––———					——–––––———
Net Change				$	120,638			$	9,845			$	10,405,478
		——–––––———					——––––––———					——–––––———
9. Net Assets
At March 31, 2003, net assets consisted of:
					Nova								Ursa
		Nova			Master				Ursa				Master				OTC
		Fund			Portfolio				Fund				Portfolio				Fund
	——–––––——			——–––––——			——–––––——					——–––––——					——–––––——
Paid-In-Capital	$	311,720,332		$	470,802,945		$	525,779,629				$	901,239,114		$	1,632,998,863
Undistributed Net
Investment Income (Loss)		59,012			852			(2,071,516		)			—				—
Accumulated Net Realized
Loss on Investments,
Equity Index Swaps, and
Futures Contracts		(138,298,253	)	(309,975,490		)		(5,910,089		)		(368,201,394		)	(1,070,660,020			)
Net Unrealized Appreciation
(Depreciation) on
Investments, Equity Index
Swaps, and Futures
Contracts		(2,772,589	)		9,964,653			11,027,549					(3,975,229	)			143,830,064
	——––––––——			——––––––——			——––––––——					——––––––——			——–––––––––——
Net Assets	$	170,708,502		$	170,792,960		$	528,825,573				$	529,062,491			$	706,168,907
	——–––––——			——–––––——			——––––––——					——–––––——			——–––––––——
					Arktos												U.S.
		Arktos			Master				Medius				Mekros			Government
		Fund			Portfolio				Fund				Fund				Bond Fund
	——–––––——			——–––––——			——–––––——					——–––––——					——–––––——
Paid-In-Capital	$	211,021,430		$	282,208,156		$	33,819,471				$	62,672,621			$	62,016,090
Undistributed Net
Investment Income (Loss)		—			5,398,885				(19,507	)			(248,741	)			181,492
Accumulated Net Realized
Gain (Loss) on Investments,
Equity Index Swaps, and
Futures Contracts		(57,666,951	)	(133,187,456		)		(14,233,249		)			(17,907,122	)			(11,687,117	)
Net Unrealized Appreciation
(Depreciation) on
Investments, Equity Index
Swap, and Futures
Contracts		(4,265,806	)		(5,272,737	)			677,507				1,113,939				3,022,475
	——–––––——			——–––––——			——–––––——					——–––––——					——–––––——
Net Assets	$	149,088,673		$	149,146,848		$	20,244,222				$	45,630,697			$	53,532,940
	——–––––——			——–––––——			——–––––——					——–––––——					——–––––——

ANNUAL REPORT

133

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (continued)

													U.S
													Government
				Juno			Large-Cap			Large-Cap			Money
	Juno			Master			Europe			Japan			Market
	Fund			Portfolio			Fund			Fund			Fund
Paid-In-Capital	$	200,319,206		$	205,380,097		$	6,625,744		$	3,199,857		$	1,668,408,367
Undistributed Net
Investment Income (Loss)		—			—			(119,481	)		43,837			—
Accumulated Net Realized
Loss on Investments
Equity Index Swaps, and
Futures Contracts		(11,017,941	)		(16,851,764	)		27,678			(507,808	)		(466,240	)
Net Unrealized Appreciation
(Depreciation) on
Investments, Equity Index
Swaps, and Futures
Contracts		625,972			1,440,001			121,294			(44,005	)		—
Net Assets	$	189,927,237		$	189,968,334		$	6,655,235		$	2,691,881		$	1,667,942,127

10. Portfolio Securities Loaned

The Trust lends its securities to approved brokers to earn additional income.Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the agent, and other approved registered broker dealers act as the borrowers. The Trust receives cash collateral, valued at 102% of the value of the securities on loan, which is initially held in a segregated account at U.S. Bank. As agent, U.S. Bank may, for investment purposes, pool the Trust’s collateral in joint accounts with cash collateral from one or more other securities lending customers of U.S. Bank. Under the terms of the Trust’s securities lending agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in certain high quality, liquid investments. At March 31, 2003, the pooled cash collateral investments consisted of repurchase agreements (69.30%), commercial paper (17.50%), fixed income notes (5.87%), and money market mutual funds (7.33%). Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day.The Trust holds the cash collateral in a segregated account at its custodian bank. Although the collateral mitigates risk, the Trust could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities.The Trust has the right under the securities lending agreement to recover the securities from the borrower on demand.

At March 31, 2003 the following funds participated in securities lending and received cash collateral:

Fund	Cash Collateral		Value of Securities Loaned
——––––––––———		——–––––—–––——		——––––––————————–—
U.S. Government Money Market Fund	$	140,000,000	$	139,652,000
OTC Fund		283,037,211		264,882,690

134

N O T E S    T O    F I N A N C I A L    S TAT E M E N T S (concluded)

11. Line of Credit

The Trust has a secured $50,000,000 line of credit with U.S. Bank. Borrowings, if any, under this arrangement bear interest at U.S. Bank’s prime rate, minus 2%. This line of credit expires on June 1, 2003. As of March 31, 2003, the Trust did not have any outstanding borrowings under this agreement.

12. Juno Reverse Stock Split

Effective February 10, 2003, the Juno Fund, Investor Class shares and C Class shares, underwent a 1-for-3 reverse split.The effect of this transaction was to divide the number of outstanding shares in this Fund by three, while multiplying the net asset value per share by three.

There was no change in the aggregate market value of the outstanding shares as a result of this transaction.

13. Subsequent Events

Effective April 21, 2003, the Large-Cap Japan Fund, H Class shares and C Class shares, underwent a 1-for-3 reverse split.The effect of this transaction was to divide the number of outstanding shares in this Fund by three, while multiplying the net asset value per share by three.

There was no change in the aggregate market value of the outstanding shares as a result of these transactions.

ANNUAL REPORT

135

I N D E P E N D E N T   &   AU D I T O R S ’   &   R E P O RT

The Shareholders and Board of Trustees, Rydex Series Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Nova Fund, Ursa Fund, OTC Fund, Arktos Fund, Medius Fund, Mekros Fund, U.S. Government Bond Fund, Juno Fund, Large-Cap Europe Fund, Large-Cap Japan Fund, U.S. Government Money Market Fund, Nova Master Portfolio, Ursa Master Portfolio, Arktos Master Portfolio, and Juno Master Portfolio (collectively the “Funds”), comprising fifteen of the thirty-four Funds and Portfolios of the Rydex Series Funds as of March 31, 2003, and the related statements of operations for the year then ended, and the statements of changes in net assets, and the financial highlights for each of the periods presented.These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nova Fund, Ursa Fund, OTC Fund, Arktos Fund, Medius Fund, Mekros Fund, U.S. Government Bond Fund, Juno Fund, Large-Cap Europe Fund, Large-Cap Japan Fund, U.S. Government Money Market Fund, Nova Master Portfolio, Ursa Master Portfolio, Arktos Master Portfolio, and Juno Master Portfolio of the Rydex Series Funds as of March 31, 2003, the results of their operations for the year then ended, and the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

NewYork, NewYork

May 16, 2003

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U N AU D I T E D    TA X    I N F O R M AT I O N

Of the ordinary income distributions paid during the year for Ursa Fund, Arktos Fund, Medius Fund, and Nova Master Portfolio, 14.73%, 53.32%, 100%, and 100%, respectively, qualifies for the dividends received deduction for corporations.

Of the ordinary income distributions paid during the year for U.S. Government Bond Fund, U.S. Government Money Market Fund, Ursa Master Portfolio, Arktos Master Portfolio, and Juno Master Portfolio, 98.55%, 31.10%, 20.55%, 0.84% and 3.68%, respectively, was attributable to Federal obligations. In calculating the foregoing percentage, Fund expenses have been allocated on a pro rata basis.

The law varies in each state as to whether and what percentage of dividend income attributable to Federal obligations is exempt from state income tax.We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.

Mekros Fund distributed long-term capital gains of $183,548 on December 13, 2002, to shareholders of record on December 12, 2002. In addition, Arktos Fund and Ursa Fund shareholders redeemed $1,228,574,092 and $3,132,566,096 of shares, respectively, during the fiscal year. Of these proceeds, $1,400,910 represents long-term capital gains from Arktos Fund, and $96,488,623 from Ursa Fund.

This notification is to meet certain Internal Revenue Service requirements.

ANNUAL REPORT

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U N AU D I T E D    I N F O R M AT I O N    O N    B OA R D    O F    T RU S T E E S

Each Trust is served by a separate Board of Trustees composed of six members.The membership of each Board is the same.There is no stated term of service, and Trustees continue to serve after election until resignation.

	Positions Held	Length of Service
Name, Age, and Address	With Fund	As Trustee (Year Began)
——––————————––—	——––——–——	——––——————–———
Albert P.Viragh, Jr. (61)*	Chairman of the Board;	Rydex Series Funds – 1993
9601 Blackwell Rd., Suite 500	President of Rydex	Rydex Variable Trust – 1998
Rockville, MD 20850	Series Funds	Rydex Dynamic Funds – 1999
Corey A. Colehour (57)	Trustee	Rydex Series Funds – 1993
9601 Blackwell Rd., Suite 500		Rydex Variable Trust – 1998
Rockville, MD 20850		Rydex Dynamic Funds – 1999
J. Kenneth Dalton (62)	Trustee	Rydex Series Funds – 1995
9601 Blackwell Rd., Suite 500		Rydex Variable Trust – 1998
Rockville, MD 20850		Rydex Dynamic Funds – 1999
John O. Demaret (62)	Trustee	Rydex Series Funds – 1997
9601 Blackwell Rd., Suite 500		Rydex Variable Trust – 1998
Rockville, MD 20850		Rydex Dynamic Funds – 1999
Patrick T. McCarville (60)	Trustee	Rydex Series Funds – 1997
9601 Blackwell Rd., Suite 500		Rydex Variable Trust – 1998
Rockville, MD 20850		Rydex Dynamic Funds – 1999
Roger Somers (58)	Trustee	Rydex Series Funds – 1993
9601 Blackwell Rd., Suite 500		Rydex Variable Trust – 1998
Rockville, MD 20850		Rydex Dynamic Funds – 1999

*This trustee is deemed to be an “interested person” of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the Advisor, as described herein.

ANNUAL REPORT

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U N AU D I T E D   I N F O R M AT I O N

O N   B OA R D   O F   T RU S T E E S (concluded)

The Statement of Additional Information, a separate document with supplemental information not contained in the Prospectus, includes additional information about Fund Trustees and can be obtained without charge by calling (800) 820-0888.

	Number of Portfolios
Principal Occupations	in Fund Complex
During Past 5 Years	Overseen	Other Directorships
——––———————–––—	——––——————–——	——––——–——–———
Chairman of the Board of Directors,
President, and Treasurer:
Rydex Fund Services, Inc.	73	None
Rydex Global Advisors, Inc.
Rydex Distributors, Inc.
Senior Vice President of Marketing/
Co-Owner	73	None
Schield Management Company
Mortgage Banking Consultant and Investor
The Dalton Group	73	None
Retired	73	None
Founder and Chief Executive Officer
Par Industries, Inc.	73	None
Owner
Arrow Limousine	73	None

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ANNUAL REPORT

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