SOURCE: Rydex Investments

April 16, 2007 09:54 ET

Rydex Investments Launches Two High Yield Funds

Rydex High Yield Strategy Fund and Rydex Inverse High Yield Strategy Fund Provide Investors With Enhanced Liquidity

ROCKVILLE, MD -- (MARKET WIRE) -- April 16, 2007 -- Rydex Investments today introduced two funds designed to provide exposure to the high yield bond market. Rydex High Yield Strategy Fund and Rydex Inverse High Yield Strategy Fund aim to fill a void for financial advisors seeking trading flexibility, along with the ability to take advantage of falling and rising credit default rates.

"Although the traditional high yield fund arena is quite crowded, the availability of more liquid high yield offerings is limited," said Kevin McGovern, mutual fund business manager at Rydex Investments. "We're pleased to introduce these two products in direct response to requests from clients looking for additional options in the high yield market space."

In addition to enhanced liquidity, Rydex offers exposure to the high yield bond market through its inverse fund option, Rydex Inverse High Yield Strategy Fund -- which seeks to provide advisors with an opportunity to benefit from a rising credit default rate environment.

"Rydex Inverse High Yield Strategy Fund has the potential to appeal to a broader audience during market environments when credit default rates are anticipated to rise," said McGovern. "The fund may also be useful for those who wish to hedge their long-term high yield fund positions without selling off these assets."

With the introduction of Rydex High Yield Strategy Fund and Rydex Inverse High Yield Strategy Fund, Rydex extends its fixed-income offerings and complements its existing lineup of tradable mutual funds.

                                          Class H    Class C    Class A
                                           Ticker     Ticker     Ticker
Rydex High Yield Strategy Fund              RYHGX      RYHHX      RYHDX
Rydex Inverse High Yield Strategy Fund      RYIHX      RYIYX      RYILX
About Rydex Investments

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 $15 billion in assets via more than 80 mutual funds and exchange traded products.

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

These funds may not be suitable for all investors. The funds' use of derivatives such as futures, options and swap agreements will expose the funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. A highly liquid secondary market may not exist for the credit default swaps the funds invests in, and there can be no assurance that a highly liquid secondary market will develop. The funds' market value will change in response to interest rate changes and market conditions, among other factors. You may have a gain or loss when you sell your shares. In general, bond prices rise when interest rates fall, and vice versa. The funds' exposure to the high yield bond market may subject the funds to greater volatility because (i) the funds are affected by the ability of high yield security issuers to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. It is important to note that the funds are not guaranteed by the U.S. government. The funds are subject to active trading risks that may increase volatility and impact their ability to achieve their investment objectives.

These funds are considered non-diversified and can invest a greater portion of their 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 funds' shares than would occur in a more diversified fund. Rydex funds are offered in multiple share classes. Not all funds and all share classes are available at all firms offering Rydex funds.

Inverse funds may not be suitable for all investors. Investing in Rydex Inverse High Yield Fund involves certain risks, which include increased volatility due to the fund's possible use of short sales of securities and derivatives such as options and futures.

Securities are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

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

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