SOURCE: Rydex|SGI

Rydex|SGI

July 12, 2010 11:50 ET

RYDEX|SGI Becomes Industry's Largest Provider of Alternative Investment Mutual Funds With the Launch of Four Funds (2)

Rydex|SGI Combines Quality Investor Education With a Broad Alternative Investments Lineup, Including 12 Alternative Mutual Funds and 9 Exchange Traded Products

ROCKVILLE, MD--(Marketwire - July 12, 2010) -  Rydex|SGI continues to build on its reputation as a leading provider of alternative investments with the introduction of four mutual funds that may help investors weather the ups and downs of challenging market environments. The firm today announced the launch of the following funds:

  Rydex|SGI Event Driven and Distressed Strategies Fund (RYDSX, H-Share Class) 
  Rydex|SGI Long Short Interest Rate Strategy Fund (RYBUX, H-Share Class)
  Rydex|SGI Long Short Equity Fund (RYJLX, H-Share Class)
  Rydex|SGI Alternative Strategies Fund (RYETX, H-Share Class)

With the addition of these new funds, the company's alternatives lineup includes 12 mutual funds and nine exchange-traded products, making Rydex|SGI the industry's leading provider of alternative investment mutual funds as measured by the number of product offerings.2

"Investors are increasingly demanding accessible alternative investment exposures to help them diversify their investment portfolios and provide improved risk/return characteristics," says Richard Goldman, CEO, Rydex|SGI. "Today's launch continues Rydex|SGI's tradition of bringing institutional-style investments such as managed futures and long/short commodities mainstream. In tandem with our much sought after advisor-oriented education about alternative investments, we strive to stay ahead of the curve when it comes to offering financial professionals unique and diverse alternatives to help them differentiate their practices and deliver enhanced results for their clients."

Rydex|SGI Event Driven and Distressed Strategies Fund offers investors an opportunity to profit during a variety of market cycles. The strategy, which may help diversify an equity allocation in an investment portfolio, aims to exploit pricing inefficiencies or premiums that may occur as a result of corporate mergers and acquisitions, as well as bankruptcies and financial restructurings.1

The actively managed Rydex|SGI Long Short Interest Rate Strategy Fund is geared toward helping investors profit during falling, rising or flat interest rate environments. This fund aims to take advantage of short-term movements in U.S. Treasury prices and may be used to diversify a core fixed-income allocation.1

"Advisors are looking for alternative sources of return without the drawbacks that have traditionally been associated with the hedge fund industry," says Sanjay Yodh, managing director, alternative strategies at Rydex|SGI. "Research indicates that the majority of RIAs and brokers rank mutual funds as the preferred investment vehicle for accessing alternatives.3 We are pleased to expand our alternatives lineup to include products that offer hedge fund-like exposures, along with the benefits of registered mutual funds."

Other new Rydex|SGI alternative mutual funds include Rydex|SGI Long Short Equity Fund, which provides an opportunity to capture returns on both rising and falling equity movements, and Rydex|SGI Alternative Strategies Fund -- an investment that provides exposure to a benchmark that corresponds to the performance of a broad range of hedge fund alternatives.

With approximately $5.3 billion in alternative assets under management or 25% of the firm's total AUM, Rydex|SGI has experienced significant momentum in its alternative investments business in recent years. In 2007, the firm introduced the industry's first managed futures mutual fund, which has garnered $2.3 billion in assets since inception. The firm's long/short commodities fund has been met with considerable investor interest, attracting approximately $167 million in assets since its inception in June 2009.

In addition to offering a diverse suite of alternative mutual funds and exchange traded products, Rydex|SGI is committed to providing quality investor education programs. To help increase investor knowledge about the potential benefits and risks of alternatives, as well as how they may be incorporated in asset allocation, the firm offers whitepapers, client-ready educational materials, financial advisor workshops and GetAlts.com -- a multi-media online resource about alternative investments.

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

2 Alternatives categories defined by Fuse Research; underlying fund data from Morningstar. (June 2010)

3 Security Global Investors in conjunction with Amplitude Research® conducted this survey of financial professionals in November-December 2009. The survey was conducted with 291 financial professionals (100 RIAs, 94 independent brokers and 97 wirehouse brokers.) RIA participants had investable assets of more than $100M. This data is for informational purposes only. Amplitude Research® is not affiliated with Security Global Investors. Although Security Global Investors believes the information from this organization is correct, it cannot, and does not, guarantee or warrant the completeness or suitability of this information.

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.

Investing in mutual funds involves risk and does not assure a profit.

Rydex/SGI Event Driven and Distressed Strategies Fund, Long Short Equity Strategy Fund and Alternative Strategy Fund (the "Funds") are subject to a number of risks and are not suitable for all investors. The Funds' use of derivatives such as futures, options, structured notes, exchange-traded notes and swap agreements may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. Certain of the derivative instruments, such as swaps and structured notes, are also subject to the risks of counterparty default and adverse tax treatment. The Funds' use of short selling involves increased risk and costs including paying more for a security than received from its sale and the risk of unlimited losses. The more the Funds invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. The Funds' investments in developed and emerging foreign markets may increase volatility due to the impact of diplomatic, political or economic developments on the country in question. Additionally, the Funds' exposure to foreign currencies subjects the Funds to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currencies. In certain circumstances the Funds may be subject to liquidity risk and it may be difficult for the Funds to purchase and sell particular investments within a reasonable time at a fair price. The Funds are subject to tracking error risk, which may cause the Funds' performance not to match that of or be lower than the Fund's underlying benchmark. The 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 fund shares than would occur in a more diversified fund.

The Rydex/SGI Event Driven and Distressed Strategy Fund's investments in fixed income investments will change in value in response to interest rate changes and other factors. The fund's exposure to the high yield bond market may subject the fund to greater volatility because (i) it will be affected by the ability of high yield security issuers' ability 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. The fund's exposure to the event driven market is considered speculative and may subject the fund to additional losses. 

Rydex|SGI Long Short Interest Rate Strategy Fund is subject to a number of risks and is not suitable for all investors. The fund's 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. Certain of the derivative instruments, such as swaps and structured notes, are also subject to the risks of counterparty default. The fund's 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 fund is not guaranteed by the U.S. government. See the prospectus for more information on these and other risks.

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.

The Rydex/SGI Managed Futures Strategy Fund and Long/Short Commodities Strategy Fund are not suitable for all investors and involve special risks such as risks associated with short sales, leveraging the investment, potential adverse market forces and regulatory changes. There is no assurance that the investment objective will be attained.

For more complete information regarding the funds, call 800.820.0888 or visitwww.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.

The funds are distributed through Rydex Distributors, Inc. Security Global InvestorsSM 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 Rydex Advisors, Inc. and Rydex Advisors II, Inc. SGI and RDI are all subsidiaries of Security Benefit.

Contact Information