SOURCE: Rydex Investments

September 25, 2006 07:00 ET

New Rydex Essential Portfolios Bring Alternative Strategies to Mainstream Investors

Risk-Targeted Funds of Funds Provide Exposure to Alternative Asset Classes and Strategies, as Well as Traditional Investment Options

ROCKVILLE, MD -- (MARKET WIRE) -- September 25, 2006 -- Rydex Investments continues to build on its reputation for driving change in the financial industry with the introduction of three risk-targeted funds of funds that move beyond the traditional boundaries of asset allocation models. Seeking to provide retail investors with the same kinds of strategies used by institutions to manage risk, the new Rydex Essential Portfolios offer exposure to absolute return strategies and alternative asset classes that may help enhance returns regardless of market conditions.

"The traditional investment approach that consists of dividing assets among stocks, bonds and cash may not be enough to achieve true diversification and may leave a portfolio particularly vulnerable in bear and sideways markets," says David Reilly, director of portfolio strategies at Rydex Investments. "Rydex Essential Portfolios are intended to help investors take a page from institutions, which have historically done a better job of managing risk and generating returns whether or not the market is up or down."

Unlike traditional asset allocation models, Rydex Essential Portfolios take a dynamic approach by starting with quantitatively defined risk targets (conservative, moderate or aggressive) and building portfolios that periodically adjust their allocations within a very tightly defined risk framework. Depending on the risk target, the funds include varying exposures to alternative asset classes and strategies, including commodities, long/short and momentum.

"We wanted to take the guesswork out of introducing alternative investment strategies into a portfolio," says Reilly. "The smaller retail investor who has a low tolerance for risk may stand to benefit from Essential Portfolios' use of non-correlating asset classes and hedge-fund like strategies."

Composed of other Rydex funds, Essential Portfolios take advantage of Rydex's history as an innovator within the mutual fund industry. The firm's diversified product lineup consists of traditional and alternative investments, making Rydex uniquely positioned to offer asset allocation funds that go beyond traditional boundaries.

"With the investment industry becoming increasingly competitive, financial advisors are looking for ways to provide their clients with new and unique sources of return, as well as dynamic asset allocation," says Reilly. "Rydex Essential Portfolios may help investment professionals differentiate themselves by offering exposure to traditional investments and alternative strategies in one easy turn-key solution."

About Rydex

Rydex Investments continues to drive change in the financial industry by introducing investment products and services that challenge conventional thinking, empower investors and provide essential new options for uncertain market conditions. Rydex manages $14 billion in assets via more than 60 mutual funds and exchange traded products.

Rydex Essential Portfolios are subject to a number of risks and may not be suitable for all investors. Each Rydex Essential Portfolio Fund will be exposed to all of the risks of the underlying funds and will bear a proportionate share of each underlying fund's operating expenses. The underlying funds, or combination of underlying funds, may not perform as expected. As an alternative to investing in underlying funds, Rydex Essential Portfolio Funds may purchase shares of ETFs to gain exposure to a particular position of the market while awaiting an opportunity to purchase Rydex funds directly. For more information, see the funds' prospectus.

For more complete information regarding Rydex Essential Portfolio Funds, call 800.820.0888 or visit for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Please read the prospectus carefully before you invest or send money.

Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of the Rydex funds.

Contact Information