SOURCE: Security Global Investors

Security Global Investors

January 20, 2010 10:52 ET

Security Global Investors Intensifies Alternative Investments Focus With Two New Hires

Jerome Abernathy, Ph.D. Joins SGI's Quantitative Investment Team as Director of Research, and David Beeman Assumes Senior Product Manager Role for the Firm's Alternative Investments Suite, Including Rydex|SGI Mutual Funds

NEW YORK, NY--(Marketwire - January 20, 2010) - Security Global Investors (SGI) today announced the addition of two new positions intended to intensify the firm's focus on delivering high-quality alternative investment strategies to financial intermediaries and institutional investors. Jerome Abernathy, Ph.D., and David Beeman have joined SGI's quantitative investment and product development/management teams, and will help shape the firm's research and product development efforts surrounding alternatives.

"Security Global Investors has been a pioneer in packaging nontraditional investments such as managed futures and long/short commodities in retail-friendly, mutual fund structures," says Richard Goldman, CEO, SGI. "The addition of Abernathy and Beeman to our firm underscores our commitment to continuing to bring innovative alternative investment solutions to the marketplace."

As director of research at SGI, Abernathy will lead the quantitative investment team's research efforts for new and existing products with a focus on alternative investment strategies. Prior to joining SGI, he served as founder and chief investment officer at Stonebrook Capital Management, LLC, where he managed and developed a number of ground-breaking alternative investment products for institutional investors. During his more than 20 years in the financial services industry, Abernathy has held various research, product development and portfolio management positions at firms such as Moore Capital Management, Inc., Merrill Lynch and Morgan Stanley.

Beeman also joins SGI with extensive experience in developing and managing alternative investments. As senior product manager at SGI, he will be responsible for the development and management of the firm's alternatives product lineup in both the financial intermediary and institutional markets. Beeman previously served as managing director, chief operating officer and head of alpha strategies at Citi Alternative Investments in New York. With more than 25 years of financial services experience, he has held similar positions at Thunder Bay Capital Management and Deutsche Bank.

"We are pleased to welcome both Jerome Abernathy and David Beeman to our team," says Michael Byrum, chief investment officer, quantitative strategies at SGI. "Their extensive knowledge of alternatives, as well as their rich industry experience, will enable SGI to accelerate its product development plans for the new year."

Security Global Investors, which operates under the Rydex|SGI brand name in the financial intermediary market, has achieved significant momentum in its alternative investments business during the past several years. In 2007, the firm introduced the industry's first mutual fund to offer managed futures exposure. Rydex|SGI Managed Futures Strategy Fund (RYMFX) is designed to provide convenient access to the U.S. commodities and global financial futures markets, and has garnered more than $2 billion in assets since inception. The firm has also attracted investor interest in the Rydex|SGI Long/Short Commodities Strategy Fund (RYLFX), which launched this past summer to provide an alternative to long-only commodities strategies.

In addition to delivering high-quality alternative investment strategies, Security Global Investors is committed to providing investor education in the form of whitepapers, financial advisor workshops and educational literature. The firm recently unveiled GetAlts.com, an award-winning, online resource designed to help investors better understand alternative investments and how they may help contribute to a diversified investment portfolio.

About SGI | Security Global Investors and Rydex|SGI

SGI|Security Global Investors manages approximately $21 billion in assets, and offers institutional investors and financial intermediaries a broad spectrum of traditional and nontraditional investment options that span five distinct disciplines -- actively managed specialty fixed-income, value, growth and global equity strategies, as well as quantitative investment management solutions. For more information call 800-820-0888.

Alternative investment mutual funds may not be suitable for all investors because of the sophisticated and aggressive investment techniques such investments employ, including leverage, the use of derivatives and short selling.

Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

For more complete information regarding the funds, call 800.820.0888 or visit www.rydex-sgi.com 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. Read the prospectus carefully before you invest or send money.

Rydex|SGI Managed Futures Strategy Fund is subject to a number of risks and may not be suitable for all investors. • The fund's use of derivatives such as futures, options, structured notes and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • A highly liquid secondary market may not exist for the commodity-linked structured notes the fund invests in, and there can be no assurance that a highly liquid secondary market will develop. • The fund's exposure to the commodities market may subject the fund to greater volatility as commodity-linked derivative investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry or commodity. • When the fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF's expenses. Further, in part because of these additional expenses, the performance of an ETF may differ from the performance the fund would achieve if it invested directly in the underlying investments of an ETF. • This fund is subject to tracking error risks, which may cause the fund's performance not to match that of or be lower than the fund's underlying benchmark. • This fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund.

Rydex|SGI Long/Short Commodities Strategy Fund is subject to a number of risks and may not be suitable for all investors. • The fund's use of derivatives such as futures, options, structured notes and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • A highly liquid secondary market may not exist for the commodity-linked structured notes the fund invests in, and there can be no assurance that a highly liquid secondary market will develop. • The fund's exposure to the commodity markets may subject the fund to greater volatility as commodity-linked investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry or commodity -- such as droughts, floods, weather, embargos, tariffs and international economic, political and regulatory developments. • The fund's use of short selling involves increased risk and costs. The fund risks paying more for a security than it received from its sale. Theoretically, securities sold short have the risk of unlimited losses. • The more the fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • When the fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF's expenses. Further, in part because of these additional expenses, the performance of an ETF may differ from the performance the fund would achieve if it invested directly in the underlying investments of an ETF. • The fund is subject to tracking error risks, which may cause the fund's performance not to match that of or be lower than the fund's underlying benchmark. See the prospectus for more details. • The fund is considered nondiversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund.

The funds are distributed by Rydex Distributors, Inc. (RDI).Security Global Investors(SM) is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc.

NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE

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