August 11, 2011 09:05 ET

Rydex Small Cap Value Fund Earns 5-Star Morningstar Rating

Marks Funds Third-Anniversary

NEW YORK, NY--(Marketwire - Aug 11, 2011) - Rydex|SGI, a leading investment manager, today announced Rydex|SGI Small Cap Value Fund A, C and Institutional shares achieved a 5-star overall rating from Morningstar for the three year period ended July 31, 2011, based on risk-adjusted returns. The fund was rated against 572 funds in the Morningstar small cap blend category.

The 5-star rating marks the third anniversary of the fund. Before star ratings are assigned, Morningstar requires that funds have three years of performance history.

Morningstar's rating methodology was first introduced in 1985 and is a quantitative measure of a fund's performance, according to the Morningstar website. It examines total returns, relative performance and risk adjusted returns. The 5-star rating is provided only to those funds that rank in the top 10% of the peer group.

"We are very pleased with the Morningstar 5-star rating and it solidifies our strong investment process of investing in undervalued small cap companies," said Jim Schier, portfolio manager for the fund at Rydex. "Our rigorous investment process combines searching for the most undervalued and underserved opportunities in the market," he said.

Schier is a leading portfolio manager in the industry with over 27 years of experience, in which 16 years he has worked at Rydex|SGI. He also holds a Chartered Financial Analyst (CFA) designation.

The Rydex|SGI Small Cap Value Fund invests in a diversified portfolio of 70 to 90 small cap companies. Additionally, the fund has a smaller market cap profile when compared to other small cap value funds, with approximately 52% of its holdings in microcaps, according to a Morningstar analysis report of the fund released 8/3/2011.

In addition to managing small cap assets, the value team, lead by Schier, manages assets across the entire value market capitalization including, large cap, mid cap, and small cap.

About Rydex|SGI
Rydex|SGI manages approximately $26 billion in assets. The firm offers institutional investors and financial intermediaries a broad spectrum of traditional and non-traditional investment options that span four distinct disciplines: fundamental alpha (actively-managed equity and fixed-income), alternative strategies, target beta strategies, and ETFs. For more information, visit or call 800.820.0888.

Past performance is no guarantee of future results.

1 For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages).

The Overall Morningstar Rating for a Fund is derived from a weighted average of the performance figures associated with its three-, five-and ten-year (if applicable) Morningstar Rating metrics. For the 3-year period, the fund was rated 5 stars among 572 in the Small Cap Blend category for the time period ended 7/31/11. The rating is for Class A-Shares only; other classes may have different performance characteristics.

The Small Cap Value Fund's rating reflects fee waivers in effect; in their absence, ratings may have been lower.

©2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, nor its content providers, are responsible for any damages or losses arising from any use of this information.

Rydex|SGI Value Funds may not be suitable for all investors. Investing in mutual funds involves risk and does not assure a profit. An investment in the fund will fluctuate and is subject to investment risks, which means investors could lose money. The intrinsic value of the underlying stocks may never be realized or the stocks may decline in value. Investments in small- and/or mid-sized company securities may present additional risks such as less predictable earnings, higher volatility and less liquidity than larger, more established companies.

For more complete information regarding Rydex|SGI funds, call 800.258.4332 or visit for a prospectus and a summary prospectus (if available). Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. The fund's prospectus and its summary prospectus (if available) contain this and other information about the fund. Please read the prospectus and summary prospectus (if available) carefully before you invest or send money.

Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors® and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly-owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

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