ROCKVILLE, MD, Jul 06 (MARKET WIRE) --
Rydex|SGI today introduced a mutual fund designed to provide long/short
exposure to commodities. Rydex|SGI Long/Short Commodities Strategy Fund
aims to match the performance of the J.P. Morgan Core
Commodity-Investable Global Asset Rotator Sigma Long-Short Total Return
Index -- an index which seeks to capitalize on rising and falling
commodities prices.
"We've seen that financial advisors are increasingly turning to
alternative investments like commodities for their historically low
correlation to traditional stock and bond assets," says Richard Goldman,
chief executive officer of Rydex|SGI. "With the launch of Rydex|SGI
Long/Short Commodities Strategy Fund, we're pleased to expand our suite of
alternative investments to include an investment strategy that seeks to
generate returns regardless of the direction of the commodities markets."
The new Rydex|SGI fund can provide exposure to up to 14 different
commodity constituents (up to seven long and up to seven short) including
natural gas, gasoline, heating oil, lead, Brent crude oil, WTI crude oil,
wheat, soybeans, corn, copper, aluminum, nickel, silver and gold. Long
and short positions are determined by the rules of the fund's underlying
index, which evaluate the historical price trend (and the consistency of
the trend) of each index constituent. The index is rebalanced on a
monthly basis and features a built-in risk management mechanism that
reduces exposure during periods following high historical volatility.
"Commodities have shown the ability to provide significant
diversification(1) benefits to an investment portfolio, particularly
during a rising inflationary environment," says Sanjay Yodh, managing
director, alternative investments at Rydex|SGI. "Given the volatility and
directional uncertainty of the commodities markets in general, we believe
that a long/short commodities strategy offers a prudent approach to
capture momentum while offering risk management potential."
Packaged as an open-end mutual fund, the new Rydex|SGI fund offers
long/short commodities exposure without the accredited investor
requirements often associated with commodities investing.
"As a pioneer in bringing alternatives like commodities, managed futures
and multi-hedge strategies mainstream, we're committed to providing these
nontraditional exposures along with the structural benefits associated
with mutual funds," says Goldman. "Now more than ever, financial advisors
are placing a premium on liquidity and transparency. The open-end mutual
fund structure offers these and other benefits such as affordability and
regulatory oversight."(2)
Rydex|SGI Long/Short Commodities Strategy Fund complements the firm's
growing lineup of '40 Act alternative investment mutual funds, including
Rydex|SGI Global Market Neutral Strategy Fund and Rydex|SGI Global 130/30
Strategy Fund which launched earlier this year, as well as Rydex|SGI
Managed Futures Strategy Fund, which has garnered approximately $2 billion
in assets since its inception in 2007.
(1) Diversification neither assures a profit of eliminates the risk of
experiencing investment losses.
(2) Rydex|SGI Long/Short Commodities Strategy Fund features a 1%
redemption fee on shares redeemed within 30 days of purchase. Under
certain circumstances, there may be a contingent deferred sales charge
(CDSC) of 1% for redemptions of A-Class shares of the fund within 18
months of purchase. C-Class shares of the fund feature a maximum CDSC of
1% for shares redeemed within 12 months of purchase.
About SGI|Security Global Investors and Rydex|SGI
SGI|Security Global Investors manages approximately $17 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 800-213-1862.
For more complete information regarding Rydex Funds call 800.820.0888 for
a prospectus. For more information about Security Funds call 800.888.2461
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 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.
Index disclaimer: J.P. Morgan and J.P. Morgan Core Commodity-Investable
Global Asset Rotator Long-Short Sigma Index are trademarks of J.P. Morgan
Securities Ltd. (together with its affiliates, "J.P. Morgan") and have
been licensed for use by Rydex Investments and its affiliates. The
information and J.P. Morgan Core Commodity-Investable Global Asset
Rotator Long-Short Sigma Index may not be copied, used, or distributed
without J.P. Morgan's prior written approval. Copyright 2009, J.P.
Morgan. All rights reserved. The Rydex|SGI Long/Short Commodities
Strategy Fund is not sponsored, endorsed, sold or promoted by J.P. Morgan
and J.P. Morgan makes no representation regarding the advisability of
investing in the fund.
Alternative 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.
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. Services offered through Rydex
Distributors, Inc., an affiliate of SGI.
Contact:
Lori Klash Winkler
301.296.5487
Email Contact
Cassandra Pean
301.296.5146
Email Contact
Copyright 2009, Market Wire, All rights reserved.
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