ROCKVILLE, MD -- 03/17/08 --
Rydex Investments -- a pioneer in bringing
institutional-style investing mainstream -- today announced the launch of a
fund of funds that offers convenient exposure to the alternatives
marketplace. Rydex Alternative Strategies Allocation Fund seeks to deliver
a return that has low correlation to the returns of traditional stock and
bond asset classes, as well as to provide capital appreciation.
"From hedge fund replication to the industry's first managed futures mutual
fund, Rydex has been a leader in bringing alternative investments to
financial professionals and their clients," says Kevin McGovern, managing
director of Rydex mutual funds. "We are pleased to build on this expertise
with Rydex Alternative Strategies Allocation Fund, offering a packaged
solution for investors seeking multiple alternative investments within a
single fund."
According to McGovern, the new Rydex fund can help do the heavy lifting for
those investors who are uncertain about how many and which types of
alternatives to incorporate into their portfolios.
Rydex Alternative Strategies Allocation Fund invests in a suite of
alternative mutual funds and ETFs, including other Rydex funds, to provide
exposure to alternative asset classes and investment strategies such as
absolute returns, commodities, currency arbitrage, managed futures and real
estate. The fund uses a quantitative investment methodology in an attempt
to emphasize the most favorable alternative asset classes and investment
strategies at any given point in time.
"Rydex relies on a rules-based investment methodology to analyze the
historical correlations and risks of the underlying funds, as well as
current market conditions," says Edward Egilinsky, managing director of
alternative investments for Rydex. "From a portfolio diversification
standpoint, alternatives have collectively shown a very low or negative
historical correlation to stocks and bonds."
For years, institutional investors have used alternatives to help mitigate
portfolio declines and enhance returns. Retail investor portfolios, on the
other hand, tend to consist primarily of traditional assets such as
domestic and international stocks, bonds and cash.
"Until recently, individual investors have had difficulty gaining access to
alternative investments due to high minimum requirements, lack of liquidity
and other barriers," says Egilinsky. "By packaging alternative exposures
within mutual fund product structures, Rydex has been able to deliver the
potential benefits of alternatives to individual investors in a
retail-friendly format."
According to recent Rydex AdvisorBenchmarking findings, 64% of financial
professionals plan to increase their use of alternative investments, citing
absolute returns and access to noncorrelated assets as the top two drivers
of client demand.(1)
Despite a growing interest in nontraditional investments, the survey also
shows a need for more education surrounding alternatives and how they can
be incorporated as part of a well-diversified portfolio. To help inform
financial professionals of the potential benefits and risks associated with
alternative investing, Rydex offers a lineup of educational literature.
Rydex Alternative Strategies Allocation Fund is subject to a number of
risks and may not be suitable for all investors. Although the fund's asset
allocation among several underlying funds that represent different
alternative asset classes and strategies generally limits risk and exposure
to any one asset class or strategy, the risk remains that the fund's
investment advisor may favor an asset class or strategy that performs
poorly relative to other asset classes and strategies. There is also no
guarantee that the underlying funds will achieve their investment
objectives. Each of the underlying funds in which the fund invests has its
own investment risks, and those risks can affect the value of the fund's
shares and investments. The risks of the underlying funds include those
associated with investments in derivative instruments, leveraged and short
selling techniques, commodities markets, foreign securities and currencies,
and lower rated ('junk') bonds. Additionally, the fund will bear a
proportionate share of each underlying fund's operating expenses. Please
see the prospectus for more information on these and additional risks.
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 approximately $15 billion in assets via
nearly 100 mutual funds and exchange traded products.
For more complete information regarding Rydex Alternative Strategies
Allocation Fund, including management fees and expenses, call 800.820.0888
for a prospectus. Investors should carefully consider the investment
objectives, risks, charges and expenses of a fund before investing. The
fund's prospectus contains this and other information about the fund.
Please read the prospectus carefully before you invest or send money.
About Rydex AdvisorBenchmarking, Inc., an affiliate of Rydex Investments
Rydex AdvisorBenchmarking is a research and analysis center focused on the
registered investment advisor (RIA) marketplace. Every year through its
survey web site, www.AdvisorBenchmarking.com, the firm conducts multiple
surveys of advisors, covering a host of business management and investment
management practices. The findings and analysis of the data are then
released to the marketplace as annual studies, quarterly research notes and
monthly newsletters. The service is aimed at helping advisors grow and
enhance their firms by comparing how their businesses fare against other
advisors. Advisors also learn best practices of the most successful
advisors in the business.
Rydex Distributors, Inc., an affiliate of Rydex Investments, is the
distributor of Rydex funds.
(1) Source: Rydex AdvisorBenchmarking Semiannual Survey -- Winter 2008.
Contact:
Lori Klash Winkler
301.296.5487
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