rydex variable trust semi-annual report benchmark funds

Transcription

JUNE 30, 2008
R Y D E X VA R I A B L E T R U S T S E M I - A N N U A L R E P O R T
BENCHMARK FUNDS
NOVA FUND
RUSSELL 2000 ® 2x STRATEGY FUND
INVERSE DOW 2x STRATEGY FUND
INVERSE S&P 500 STRATEGY FUND
RUSSELL 2000 ® 1.5x STRATEGY FUND
SMALL-CAP VALUE FUND
NASDAQ-100 ® FUND
(Formerly, OTC Fund)
INVERSE RUSSELL 2000 ®
STRATEGY FUND
MID-CAP VALUE FUND
INVERSE NASDAQ-100 ®
STRATEGY FUND
(Formerly, Inverse OTC Strategy Fund)
GOVERNMENT LONG BOND
1.2x STRATEGY FUND
LARGE-CAP VALUE FUND
S&P 500 2x STRATEGY FUND
NASDAQ-100 ® 2x STRATEGY FUND
(Formerly, OTC 2x Strategy Fund)
INVERSE GOVERNMENT LONG BOND
STRATEGY FUND
EUROPE 1.25x STRATEGY FUND
JAPAN 1.25x STRATEGY FUND
MID-CAP 1.5x STRATEGY FUND
DOW 2x STRATEGY FUND
INVERSE MID-CAP STRATEGY FUND
SMALL-CAP GROWTH FUND
MID-CAP GROWTH FUND
LARGE-CAP GROWTH FUND
U.S. GOVERNMENT
MONEY MARKET FUND
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TA B L E O F C O N T E N T S
LETTER TO OUR SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
ABOUT SHAREHOLDERS’ FUND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
FUND PROFILES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
SCHEDULES OF INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
STATEMENTS OF ASSETS AND LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88
STATEMENTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92
STATEMENTS OF CHANGES IN NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
96
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
NOTES TO FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
THE RYDEX VARIABLE TRUST SEMI-ANNUAL REPORT
| 1
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
The defining events of the first half of 2008 were the absolute explosion in energy and commodity prices
and the meltdown in stocks late in the second quarter as the third leg of the financial crisis unfolded. In
this environment, the key to investment performance was exposure to natural resources, particularly
energy; to the companies that produced, processed or delivered natural resources; and the avoidance of
virtually all other forms of equity risk. All of the major indices recorded losses as evidenced by the 13.4%
decline in the Dow Jones IndustrialSM Average and the 11.9% decline in the S&P 500® Index.
As oil climbed relentlessly, stock prices assumed an inverse relationship to the energy markets. The fallout
from rampaging energy prices impacted economies and markets across the globe and was a major driver
of financial asset prices.
Recession risks in the developed world increased as economic growth slowed to a crawl and inflation
reared its ugly head. The rise in energy prices put central banks across the globe on inflation watch and a
coordinated tightening cycle began to unfold even as growth slowed. No fewer than 24 central banks,
including all of the BRIC nations, increased rates in the first half of the year.
Fear replaced optimism as the dominant emotion driving market behavior and risk was shunned. For
equity investors, a perfect storm of high and rising energy costs, recession fears, inflation and tightening
monetary policy eclipsed the facts that the non-financial corporate sector is in robust health, interest rates
remain low and there is a massive pile of cash waiting on the sidelines.
With a wave of negativism hitting financial markets, pockets of strength were few and far between. Energy
stocks rallied hard on skyrocketing oil prices and materials stocks did well — by not going down — due to
their alignment with the global growth wave and the associated boom in exports. Reasons for optimism
were hard to come by, but we think it is noteworthy that existing home sales have shown signs of a bottom,
the dollar stabilized, and despite the global pullback in stock prices, economic growth in the developing
markets continued to power ahead.
Looking forward, we think confidence will slowly return to the global financial sector as it has been doing,
albeit fitfully, since early spring. Any rebound in financial share prices will ultimately pull the broader market
averages higher as we have seen repeatedly since the unfolding of the financial crisis over a year ago. Until
that happens, large-cap stocks and growth stocks seem like the better play rather than small-cap and value
stocks even though small-caps outperformed – again by going down less – toward the end of the second
quarter. The Russell 2000® Index of small-cap stocks declined a comparatively modest 9.4% in the first half of
the year.
With inflation becoming more of a concern and the Fed more vigilant about the dangers of rising prices,
the pressure on interest rates will continue to be to the upside – even as growth slows. The explosion in
commodities exhibits the characteristics of a mania: panic buying and prices racing ahead of underlying
demand. Although signs of falling demand for energy in the developed world are unmistakable, the price
of a barrel of crude oil rose an eye-popping 45% in the first half of the year, blasting through the $100/bbl
mark and hitting $140/bbl by the end of June.
There is no question that the emergence of a global tightening cycle, plummeting consumer confidence
and $140/bbl oil has increased the chances of an outright recession in the U.S. Although risks are higher,
the most likely scenario as we move into the second half of the year is a continuation of the no-recession/
no-recovery economy as exports and the remnants of the one-time boost from tax rebate checks support
growth in the short run.
There are still reasons to be cautious. The all-important financial sector is going through the painful process
of rebuilding its balance sheets and central banks are tightening at the exact time growth is slowing, both
of which are ultimately attributable to high energy costs. With that said, there are emerging pockets of
strength and we are mindful that investment success often comes at the point of maximum negativism.
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.
Sincerely,
David C. Reilly, CFA
Director of Portfolio Strategy
2 |
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS
(Unaudited)
Many of the Rydex Funds described in this report are benchmarked daily to leveraged or inverse
leveraged versions of published indices. To properly evaluate the performance of these funds, it is
essential to understand the effect of mathematical compounding on their respective returns.
Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line
with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire
period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to
outperform its benchmark over longer periods.
An Example of Compounding
For example, consider a hypothetical fund that is designed to produce returns that correspond to 150%
of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a
6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value
(“NAV”) increases from $10.00 to $10.90 for a gain of 9.0%–in line with its benchmark.
On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected,
falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but
for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking
into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see
the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the
table below.
Start
Day 1
Day 2
Cumulative
Index
Level
100
106
99
Index
Performance
Fund
Expectation
6.0%
-6.6%
-1.0%
9.0%
-9.9%
-1.5%
Fund NAV
$10.00
$10.90
$ 9.82
Fund
Performance
9.0%
-9.9%
-1.8%
Assessment
In line
In line
-0.3%
As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or
judgments about fund performance given only the returns of the unleveraged index.
In general, any change in direction in an index will produce compounding that seems to work against an
investor. Were the index to move in the same direction (either up or down) for two or more periods in a
row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly
beat its benchmark.
As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less
leverage will generally produce results that are more in line with expectations. In addition, periods of high
volatility in an underlying index will also cause the effects of compounding to be more pronounced, while
lower volatility will produce a more muted effect.
| 3
ABOUT SHAREHOLDERS’ FUND EXPENSES
(Unaudited)
All mutual funds have operating expenses and it is important for our shareholders to understand the
impact of costs on their investments. As a shareholder of the Fund, you incur two types of costs: (i)
transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other
distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees,
administrative services, and shareholder reports, among others. These ongoing costs, or operating
expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense
ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of
investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 made at the beginning of the period and held for
the entire six-month period beginning December 31, 2007 and ending June 30, 2008.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps you estimate the actual expenses that you paid
over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the
fourth column shows the dollar amount that would have been paid by an investor who started with
$1,000 in the Fund. You may use the information here, together with the amount you invested, to
estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number
given for your fund under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help you compare your fund’s cost
with those of other mutual funds. The table provides information about hypothetical account values
and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of
5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values
and expenses may not be used to estimate the actual ending account balance or expenses you paid
during the period. The example is useful in making comparisons because the U.S. Securities and
Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5%
return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
The calculations illustrated above assume no shares were bought or sold during the period. Actual costs
may have been higher or lower, depending on the amount of investment and the timing of any purchases
or redemptions.
Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only
and do not reflect any transactional costs which may be incurred by a Fund.
More information about the Fund’s expenses, including annual expense ratios for the past five years, can
be found in the Financial Highlights section of this report. For additional information on operating
expenses and other shareholder costs, please refer to the appropriate Fund prospectus.
4 |
ABOUT SHAREHOLDERS’ FUND EXPENSES
Expense
Ratio†
(Unaudited) (concluded)
Beginning
Account Value
December 31, 2007
Ending
Account Value
June 30, 2008
Expenses
Paid During
Period*
Table 1. Based on actual Fund return
Nova Fund
Inverse S&P 500 Strategy Fund
NASDAQ-100® Fund
Inverse NASDAQ-100® Strategy Fund
S&P 500 2x Strategy Fund
NASDAQ-100® 2x Strategy Fund
Mid-Cap 1.5x Strategy Fund
Inverse Mid-Cap Strategy Fund
Russell 2000® 2x Strategy Fund
Russell 2000® 1.5x Strategy Fund
Inverse Russell 2000® Strategy Fund
Government Long Bond 1.2x Strategy Fund
Inverse Government Long Bond Strategy Fund
Europe 1.25x Strategy Fund
Japan 1.25x Strategy Fund
Dow 2x Strategy Fund
Inverse Dow 2x Strategy Fund
Small-Cap Value Fund
Mid-Cap Value Fund
Large-Cap Value Fund
Small-Cap Growth Fund
Mid-Cap Growth Fund
Large-Cap Growth Fund
U.S. Government Money Market Fund
1.49%
1.61%
1.52%
1.66%
1.64%
1.69%
1.62%
1.64%
1.64%
1.64%
1.66%
1.18%
5.06%
1.66%
1.62%
1.65%
1.65%
1.47%
1.48%
1.48%
1.48%
1.47%
1.48%
1.18%
$1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
$ 811.10
1,132.00
879.70
1,108.30
739.60
733.80
912.10
1,034.30
777.50
843.30
1,086.30
887.60
983.10
828.00
928.30
714.40
1,301.50
841.40
851.20
759.60
890.30
971.50
916.70
1,017.10
$ 6.71
8.53
7.10
8.70
7.09
7.29
7.70
8.30
7.25
7.52
8.61
5.54
24.95
7.54
7.77
7.03
9.44
6.73
6.81
6.47
6.96
7.21
7.05
5.92
Table 2. Based on hypothetical 5% return
Nova Fund
NASDAQ-100® Fund
Mid-Cap Value Fund
Mid-Cap Growth Fund
1.49%
1.61%
1.52%
1.66%
1.64%
1.69%
1.62%
1.64%
1.64%
1.64%
1.66%
1.18%
5.06%
1.66%
1.62%
1.65%
1.65%
1.47%
1.48%
1.48%
1.48%
1.47%
1.48%
1.18%
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,017.45
1,016.86
1,017.30
1,016.61
1,016.71
1,016.46
1,016.81
1,016.71
1,016.71
1,016.71
1,016.61
1,019.00
999.70
1,016.61
1,016.81
1,016.66
1,016.66
1,017.55
1,017.50
1,017.50
1,017.50
1,017.55
1,017.50
1,019.00
7.47
8.07
7.62
8.32
8.22
8.47
8.12
8.22
8.22
8.22
8.32
5.92
25.16
8.32
8.12
8.27
8.27
7.37
7.42
7.42
7.42
7.37
7.42
5.92
* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number
of days in the most recent fiscal half-year, then divided by 366. Expenses shown do not include additional fees charged by insurance companies.
† This ratio represents annualized Total Expenses, which include interest expense from securities sold short. Excluding short interest expense, the
operating expense ratio of the Inverse Government Long Bond Strategy Fund would be reduced by 3.44%.
| 5
FUND PROFILES
(Unaudited)
NOVA FUND
OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s
current benchmark is 150% of the daily performance of the S&P 500 Index.
Inception: May 7, 1997
Holdings Diversification (Market Exposure as % of Net Assets)
150%
S&P 500 Index Swap
Agreements
100%
50%
S&P 500 Index
Futures Contracts
Consumer Discretionary
Consumer Staples
Industrials
Health Care
Financials
Consumer Staples
Industrials
Health Care
Financials
Energy
Energy
0%
Information Technology
Other
Other
Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.
General Electric Co.
Chevron Corp.
Microsoft Corp.
International Business Machines Corp.
AT&T, Inc.
ConocoPhillips
Procter & Gamble Co.
Johnson & Johnson, Inc.
Intel Corp.
Top Ten Total
3.7%
1.8%
1.7%
1.5%
1.4%
1.3%
1.3%
1.2%
1.1%
1.1%
16.1%
“Ten Largest Holdings” exclude any temporary
cash or derivative investments.
S&P 500 Index
Nova Fund
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes
any temporary cash investments.
OBJECTIVE: To provide investment results that will inversely correlate to the performance of the S&P 500 Index.
Inception: June 9, 1997
100%
Consumer Staples
Industrials
Health Care
Financials
Energy
80%
60%
40%
Other
20%
0%
-20%
-40%
-60%
-80%
-100%
S&P 500 Index Futures
Contracts Sold Short
S&P 500 Index
Swap Agreements
Sold Short
Inverse S&P 500
Strategy Fund
S&P 500 Index
6 |
The Fund invests principally in derivative instruments such as equity index swap agreements,
futures contracts, and options on index futures.
FUND PROFILES
(Unaudited) (continued)
NASDAQ-100® FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for over-the-counter securities. The Fund’s current
benchmark is the Nasdaq 100 Index®.
100%
75%
Nasdaq 100 Index
Swap Agreements
Nasdaq 100 Index
Futures Contracts
Health Care
Health Care
50%
25%
0%
Information
Technology
Information
Technology
Apple, Inc.
Qualcomm, Inc.
Microsoft Corp.
Google, Inc. — Class A
Research In Motion Ltd.
Gilead Sciences, Inc.
Intel Corp.
Oracle Corp.
Cisco Systems, Inc.
Genzyme Corp.
Top Ten Total
Other
NASDAQ-100® Fund
Other
9.9%
4.4%
4.1%
3.6%
3.1%
2.5%
2.4%
2.1%
2.1%
1.4%
35.6%
Nasdaq 100 Index
INVERSE NASDAQ-100® STRATEGY FUND
OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current benchmark is the inverse of the performance of the Nasdaq 100 Index.
100%
Health Care
80%
The Fund invests principally in derivative instruments
such as equity index swap agreements, futures
contracts, and options on index futures.
60%
40%
20%
Other
0%
-20%
-40%
-60%
-80%
Nasdaq 100 Index Futures
Contracts Sold Short
Nasdaq 100 Index Swap
Agreements Sold Short
-100%
Inverse NASDAQ-100®
Strategy Fund
Nasdaq 100 Index
| 7
FUND PROFILES
OBJECTIVE: Seeks to provide investment results that will match the performance of a specific benchmark on a daily basis. The
Fund’s current benchmark is 200% of the performance of the S&P 500 Index.
Inception: October 1, 2001
200%
150%
100%
50%
0%
S&P 500 Index Swap
Agreements
Consumer Staples
S&P 500 Index
Futures Contracts
Consumer Staples
Industrials
Health Care
Financials
Energy
Other
Industrials
Health Care
Financials
Energy
Other
Exxon Mobil Corp.
Microsoft Corp.
Chevron Corp.
AT&T, Inc.
Apple, Inc.
ConocoPhillips
Top Ten Total
3.2%
1.8%
1.5%
1.4%
1.4%
1.3%
1.3%
1.1%
1.0%
1.0%
15.0%
“Ten Largest Holdings” exclude any temporary cash
or derivative investments.
S&P 500 Index
NASDAQ-100® 2x STRATEGY FUND
OBJECTIVE: To provide investment results that will match the performance of a specific benchmark on a daily basis. The Fund’s
current benchmark is 200% of the performance of the Nasdaq 100 Index.
INCEPTION: October 1, 2001
200%
150%
Nasdaq 100 Index
Swap Agreements
Consumer
Discretionary
100%
Health Care
Nasdaq 100 Index
Futures Contracts
50%
0%
Information
Technology
Health Care
Other
NASDAQ-100® 2x
Strategy Fund
Nasdaq 100 Index
8 |
Apple, Inc.
Microsoft Corp.
Qualcomm, Inc.
Research In Motion Ltd.
Cisco Systems, Inc.
Gilead Sciences, Inc.
Oracle Corp.
Intel Corp.
Teva Pharmaceutical Industries Ltd. —
SP ADR
Top Ten Total
6.8%
2.9%
2.9%
2.5%
2.2%
1.6%
1.6%
1.5%
1.4%
1.0%
24.4%
FUND PROFILES
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for mid-cap securities. The
Fund’s current benchmark is the S&P MidCap 400® Index.
150%
S&P MidCap 400 Index
Swap Agreements
Materials
Utilities
100%
Materials
Utilities
Health Care
Energy
Futures Contracts
50%
Health Care
Energy
Financials
Industrials
0%
Financials
Industrials
Other
Activision, Inc.
Western Digital Corp.
Cleveland-Cliffs, Inc.
Arch Coal, Inc.
Harris Corp.
Pride International, Inc.
FMC Technologies, Inc.
Plains Exploration & Production Co.
Denbury Resources, Inc.
Oneok, Inc.
0.7%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.5%
0.5%
Top Ten Total
5.9%
OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current benchmark is the inverse of the performance of the S&P MidCap 400 Index.
100%
Materials
80%
60%
40%
20%
Other
0%
-20%
-40%
-60%
-80%
-100%
Utilities
Health Care
Energy
Financials
Industrials
Swap Agreements
Sold Short
Futures Contracts Sold Short
Inverse Mid-Cap
Strategy Fund
| 9
FUND PROFILES
RUSSELL 2000® 2x STRATEGY FUND
current benchmark is 200% of the performance of the Russell 2000 Index.
Health Care
Industrials
CF Industries Holdings, Inc.
Alpha Natural Resources, Inc.
PetroHawk Energy Corp.
II-VI, Inc.
Hologic, Inc.
Bucyrus International, Inc. — Class A
Whiting Petroleum Corp.
Encore Acquisition Co.
Terra Industries, Inc.
Comstock Resources, Inc.
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
Top Ten Total
2.7%
200%
150%
Russell 2000 Index
Swap Agreements
Energy
Health Care
Energy
100%
50%
0%
Russell 2000 Index
Futures Contracts
Industrials
Financials
Financials
Other
Other
Russell 2000®
2x Strategy Fund
Russell 2000 Index
RUSSELL 2000® 1.5x STRATEGY FUND
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for small-cap securities.
The Fund’s current benchmark is the Russell 2000 Index.
150%
Russell 2000 Index
Swap Agreements
Energy
100%
50%
0%
Russell 2000 Index
Futures Contracts
Energy
Health Care
Industrials
Financials
Other
Russell 2000®
1.5x Strategy Fund
Health Care
Industrials
Financials
Other
Russell 2000 Index
10 |
Alpha Natural Resources, Inc.
PetroHawk Energy Corp.
Bucyrus International, Inc. — Class A
Hologic, Inc.
Whiting Petroleum Corp.
Terra Industries, Inc.
Comstock Resources, Inc.
Walter Industries, Inc.
0.6%
0.5%
0.5%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
Top Ten Total
3.9%
FUND PROFILES
INVERSE RUSSELL 2000® STRATEGY FUND
OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current benchmark is the inverse of the performance of the Russell 2000 Index.
100%
Energy
60%
Health Care
Industrials
40%
20%
Financials
Other
80%
0%
Russell 2000 Index
Futures Contracts
Sold Short
-20%
-40%
-60%
Russell 2000 Index
Swap Agreements
Sold Short
-80%
-100%
Inverse Russell
2000® Strategy Fund
Russell 2000 Index
GOVERNMENT LONG BOND 1.2x STRATEGY FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for U.S. Government securities. The Fund’s current
benchmark is 120% of the price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the
longest maturity, which is currently 30 years.
Inception: August 18, 1997
120%
The Fund invests principally in U.S. Government
securities and in derivative instruments such as
futures and options contracts.
100%
80%
U.S. Treasury Bond
Futures Contracts
60%
40%
20%
0%
U.S. Treasury
Obligations
| 11
FUND PROFILES
INVERSE GOVERNMENT LONG BOND STRATEGY FUND
OBJECTIVE: To provide total returns that will inversely correlate to the price movements of a benchmark for U.S. Treasury debt
instruments or futures contracts on a specified debt instrument. The Fund’s current benchmark is the inverse of the daily price
movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is
currently 30 years.
0%
such as futures contracts and options on index
futures.
U.S. Treasury Obligations
Sold Short
-20%
-40%
U.S. Treasury
Bond Futures Contracts
Sold Short
-60%
-80%
-100%
Inverse Government
Long Bond Strategy Fund
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is the Dow Jones STOXX® 50 Index.
125%
100%
75%
50%
25%
0%
Dow Jones STOXX 50 Index
Swap Agreements
Dow Jones STOXX 50 Index
Futures Contracts
Materials
Telecommunication Services
Consumer Staples
Industrials
Materials
Health Care
Health Care
Energy
Energy
Financials
Other
Other
Financials
Other
Europe 1.25x Strategy Fund Dow Jones STOXX 50 Index
12 |
Total SA — SP ADR
BP PLC — SP ADR
Novartis AG — SP ADR
Vodafone Group PLC — SP ADR
HSBC Holdings PLC — SP ADR
GlaxoSmithKline PLC — SP ADR
Telefonica SA — SP ADR
Royal Dutch Shell PLC — SP ADR
ENI SpA — SP ADR
Rio Tinto PLC — SP ADR
Top Ten Total
4.9%
4.6%
3.8%
3.6%
3.5%
3.4%
3.2%
3.1%
2.9%
2.7%
35.7%
FUND PROFILES
OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is the Topix 100 Index.
125%
100%
Topix 100 Index Swap
Agreements
Technology
Communications
Basic Materials
Consumer, Non-cyclical
75%
Industrials
50%
Nikkei-225 Stock
Average Index Futures
Contracts
Financials
25%
Consumer, Cyclical
Other
0%
Topix 100 Index
current benchmark is 200% of the performance of the Dow Jones Industrial Average Index.
200%
150%
100%
Dow Jones Industrial Average
Index Swap Agreements
Financials
Dow Jones Industrial
Average Index Futures
Contracts
Materials
Health Care
Financials
Consumer Staples
Energy
Health Care
50%
0%
Consumer Staples
Energy
Industrials
Other
Industrials
Chevron Corp.
Exxon Mobil Corp.
Caterpillar, Inc.
3M Co.
Boeing Co.
United Technologies Corp.
McDonald’s Corp.
Top Ten Total
6.5%
5.4%
4.8%
4.0%
3.8%
3.6%
3.5%
3.4%
3.3%
3.1%
41.4%
Average Index
| 13
FUND PROFILES
current benchmark is 200% of the inverse performance of the Dow Jones Industrial Average Index.
100%
50%
Materials
Health Care
Energy
0%
-150%
Financials
Consumer Staples
Industrials
Average Index
Futures Contracts
-50%
-100%
Average Index
Swap Agreements
-200%
Inverse Dow 2x
Strategy Fund
Average Index
OBJECTIVE: To provide investment results that match the performance of a benchmark for small-cap value securities. The Fund’s
current benchmark is the S&P SmallCap 600/Citigroup Pure Value Index.
100%
Materials
Utilities
Materials
Utilities
Industrials
Industrials
50%
Financials
Financials
25%
Other
Other
S&P SmallCap 600/
Citigroup Pure Value Index
75%
0%
14 |
Finish Line, Inc. — Class A
Bassett Furniture Industries, Inc.
Arkansas Best Corp.
Jo-Ann Stores, Inc.
Stein Mart, Inc.
Standard Motor Products, Inc.
La-Z-Boy, Inc.
Wabash National Corp.
SYNNEX Corp.
M/I Homes, Inc.
Top Ten Total
4.3%
1.9%
1.7%
1.7%
1.6%
1.6%
1.5%
1.5%
1.5%
1.4%
18.7%
FUND PROFILES
MID-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of the benchmark for mid-cap value securities. The
Fund’s current benchmark is the S&P MidCap 400/Citigroup Pure Value Index.
100%
75%
50%
25%
Materials
Materials
Industrials
Industrials
Utilities
Utilities
Financials
Financials
Other
Other
Mid-Cap Value Fund
S&P MidCap 400/Citigroup
Pure Value Index
Furniture Brands International, Inc.
ArvinMeritor, Inc.
Kelly Services, Inc. — Class A
YRC Worldwide, Inc.
Fidelity National Financial, Inc. — Class A
Imation Corp.
Foot Locker, Inc.
Charming Shoppes, Inc.
Health Management Associates, Inc. —
Class A
Ryland Group, Inc.
Top Ten Total
0%
3.5%
3.2%
2.3%
2.1%
2.1%
2.0%
1.8%
1.8%
1.7%
1.7%
22.2%
OBJECTIVE: To provide investment results that match the performance of the benchmark for large-cap value securities. The
Fund’s current benchmark is the S&P 500/Citigroup Pure Value Index.
100%
75%
Consumer Staples
Industrials
Consumer Staples
Industrials
Utilities
Utilities
Financials
Financials
50%
25%
0%
Spectra Energy Corp.
KB Home
D.R. Horton, Inc.
Ryder System, Inc.
Lennar Corp. — Class A
Integrys Energy Group, Inc.
NiSource, Inc.
Tyson Foods, Inc. — Class A
Jones Apparel Group, Inc.
Dillard’s, Inc. — Class A
Top Ten Total
Other
Other
S&P 500/Citigroup
Pure Value Index
2.8%
2.3%
2.3%
2.0%
2.0%
1.9%
1.8%
1.8%
1.7%
1.6%
20.2%
| 15
FUND PROFILES
OBJECTIVE: To provide investment results that match the performance of a benchmark for small-cap growth securities. The
Fund’s current benchmark is the S&P SmallCap 600/Citigroup Pure Growth Index.
100%
75%
Industrials
Financials
Industrials
Financials
Energy
Energy
Health Care
Health Care
Other
Other
50%
25%
0%
Basic Energy Services, Inc.
Unit Corp.
St. Mary Land & Exploration Co.
HealthExtras, Inc.
j2 Global Communications, Inc.
Martek Biosciences Corp.
LHC Group, Inc.
Hornbeck Offshore Services, Inc.
Landstar System, Inc.
Ansoft Corp.
Top Ten Total
2.0%
1.8%
1.8%
1.7%
1.5%
1.5%
1.4%
1.3%
1.3%
1.3%
15.6%
S&P SmallCap 600/Citigroup
Pure Growth Index
MID-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a benchmark for mid-cap growth securities. The
Fund’s current benchmark is the S&P MidCap 400/Citigroup Pure Growth Index.
100%
75%
Materials
Materials
Industrials
Industrials
Energy
Energy
Health Care
Health Care
Other
Other
Mid-Cap Growth Fund
S&P MidCap 400/Citigroup
Pure Growth Index
50%
25%
0%
16 |
Cleveland-Cliffs, Inc.
Digital River, Inc.
Psychiatric Solutions, Inc.
Steel Dynamics, Inc.
Aeropostale, Inc.
Cimarex Energy Co.
DreamWorks Animation SKG, Inc. — Class A
Commercial Metals Co.
Joy Global, Inc.
Top Ten Total
4.0%
3.4%
2.0%
2.0%
1.9%
1.8%
1.8%
1.7%
1.7%
1.6%
21.9%
FUND PROFILES
OBJECTIVE: To provide investment results that match the performance of a benchmark for large-cap growth securities. The
Fund’s current benchmark is the S&P 500/Citigroup Pure Growth Index.
100%
75%
Materials
Consumer Staples
Industrials
Financials
Materials
Consumer Staples
Industrials
Financials
Energy
Energy
Health Care
Health Care
50%
25%
United States Steel Corp.
XTO Energy, Inc.
Nucor Corp.
EOG Resources, Inc.
Chesapeake Energy Corp.
Coach, Inc.
Apache Corp.
Freeport-McMoRan Copper & Gold, Inc.
CB Richard Ellis Group, Inc. — Class A
Top Ten Total
0%
Other
1.9%
1.5%
1.3%
1.3%
1.3%
1.2%
1.2%
1.1%
1.1%
1.1%
13.0%
S&P 500/Citigroup
Pure Growth Index
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: To provide security of principal, high current income and liquidity by investing in securities issued by the U.S.
Government, its agencies or instrumentalities.
100%
Fannie Mae – FADN
75%
The Fund invests principally in money market
instruments issued or guaranteed as to principal
and interest by the U.S. Government, its agencies
or instrumentalities.
Farmer Mac – FADN
Federal Home Loan Bank – FADN
Freddie Mac – FADN
50%
25%
Repurchase Agreements
0%
FADN — Federal Agency Discount Notes
| 17
SCHEDULE OF INVESTMENTS
(Unaudited)
June 30, 2008
NOVA FUND
MARKET
VALUE
SHARES
COMMON STOCKS 84.0%
INFORMATION TECHNOLOGY 14.7%
Microsoft Corp.
28,340
International Business
Machines Corp.
5,990
Intel Corp.
27,180
Apple, Inc.*
3,450
Hewlett-Packard Co.
12,010
Google, Inc. — Class A*
870
Cisco Systems, Inc.*
18,360
Qualcomm, Inc.
8,332
Texas Instruments, Inc.†
8,960
Corning, Inc.
10,488
Oracle Corp.*
10,330
Adobe Systems, Inc.*
4,260
Dell, Inc.*†
7,660
Electronic Data Systems Corp.
6,471
Automatic Data Processing, Inc.†
3,495
Fiserv, Inc.*
2,960
Symantec Corp.*†
6,790
Yahoo!, Inc.*†
5,920
JDS Uniphase Corp.*
10,370
Tyco Electronics Ltd.
3,220
Computer Sciences Corp.*†
2,435
Juniper Networks, Inc.*†
4,510
Analog Devices, Inc.
2,560
Linear Technology Corp.
2,490
Jabil Circuit, Inc.
4,632
eBay, Inc.*
2,590
EMC Corp*†
4,600
Broadcom Corp. — Class A*†
2,434
Akamai Technologies, Inc.*
1,805
Teradyne, Inc.*
5,550
Sun Microsystems, Inc.*†
4,921
Nvidia Corp.*†
2,494
LSI Logic Corp.*†
7,231
Affiliated Computer
Services, Inc. — Class A*†
780
Xerox Corp.
2,640
CA, Inc.
1,413
Cognizant Technology
Solutions Corp. — Class A*
896
Lexmark International, Inc.*
845
MEMC Electronic
Materials, Inc.*
392
Motorola, Inc.†
3,170
Ciena Corp.*†
564
Microchip Technology, Inc.
70
Xilinx, Inc.
2
Total Information Technology
ENERGY 13.6%
Exxon Mobil Corp.
21,750
Chevron Corp.†
8,940
ConocoPhillips
7,140
18 |
THE
RYDEX
VARIABLE TRUST SEMI-ANNUAL REPORT
$
779,633
709,995
583,826
577,668
530,962
457,985
427,054
369,691
252,314
241,748
216,930
167,801
167,601
159,445
146,441
134,295
131,387
122,307
117,803
115,340
114,055
100,032
81,331
81,099
76,011
70,785
67,574
66,424
62,796
61,439
53,541
46,688
44,398
41,722
35,798
32,626
29,129
28,248
24,124
23,268
13,068
2,138
51
7,566,571
1,916,827
886,222
673,944
MARKET
VALUE
SHARES
Schlumberger Ltd.
Occidental Petroleum Corp.
Transocean, Inc.*
Apache Corp.
Marathon Oil Corp.
Williams Cos., Inc.
Devon Energy Corp.
Murphy Oil Corp.†
Noble Corp.†
Hess Corp.
Halliburton Co.†
ENSCO International, Inc.†
XTO Energy, Inc.†
EOG Resources, Inc.†
El Paso Corp.
National-Oilwell Varco, Inc.*†
Valero Energy Corp.
Southwestern Energy Co.*
Baker Hughes, Inc.
Noble Energy, Inc.†
Sunoco, Inc.†
Consol Energy, Inc.†
Chesapeake Energy Corp.
Anadarko Petroleum Corp.
Massey Energy Co.
Tesoro Corp.†
Weatherford International Ltd.*
Peabody Energy Corp.
Total Energy
FINANCIALS 11.2%
Bank of America Corp.†
JPMorgan Chase & Co.
Citigroup, Inc.†
American International
Group, Inc.
Wells Fargo & Co.†
MetLife, Inc.†
Bank of New York
Mellon Corp.†
AFLAC, Inc.†
Goldman Sachs Group, Inc.†
Wachovia Corp.†
American Express Co.†
ProLogis†
Assurant, Inc.†
Unum Group†
NYSE Euronext
BB&T Corp.†
Capital One Financial Corp.†
Cincinnati Financial Corp.†
Vornado Realty Trust†
Genworth Financial, Inc. —
Class A
T. Rowe Price Group, Inc.†
Ameriprise Financial, Inc.†
4,050
3,860
1,961
1,882
4,270
5,114
1,580
1,918
2,699
1,350
3,030
1,847
1,580
620
3,240
730
1,560
1,300
590
460
1,010
280
460
390
310
732
250
70
$
435,091
346,859
298,837
261,598
221,485
206,145
189,853
188,060
175,327
170,356
160,802
149,127
108,246
81,344
70,438
64,766
64,241
61,893
51,531
46,258
41,097
31,464
30,342
29,188
29,062
14,472
12,397
6,163
7,023,435
21,555
10,360
20,030
514,518
355,451
335,703
10,880
10,980
4,750
287,885
260,775
250,657
6,470
3,567
900
10,080
3,980
2,464
2,010
6,460
2,600
5,780
3,397
4,780
1,294
244,760
224,008
157,410
156,542
149,927
133,918
132,580
132,107
131,716
131,611
129,120
121,412
113,872
6,310
1,873
2,585
112,381
105,768
105,132
See Notes to Financial Statements.
June 30, 2008
NOVA FUND
MARKET
VALUE
SHARES
Hudson City Bancorp, Inc.
Host Hotels & Resorts, Inc.†
Charles Schwab Corp.
Fifth Third Bancorp†
Loews Corp.†
Simon Property Group, Inc.†
Fannie Mae†
U.S. Bancorp
State Street Corp.
Public Storage†
Morgan Stanley
CME Group, Inc.†
Northern Trust Corp.
Equity Residential†
Washington Mutual, Inc.†
Merrill Lynch & Co., Inc.†
Freddie Mac†
American Capital
Strategies Ltd.†
National City Corp.†
General Growth
Properties, Inc.†
Huntington Bancshares, Inc.†
First Horizon National Corp.†
SLM Corp.*†
Safeco Corp.†
Countrywide Financial Corp.†
MGIC Investment Corp.†
CIT Group, Inc.†
E*Trade Financial Corp.*†
XL Capital Ltd.†
MBIA, Inc.†
IntercontinentalExchange, Inc.*
Federated Investors, Inc. —
Class B
Developers Diversified
Realty Corp.
Chubb Corp.
Total Financials
HEALTH CARE 10.9%
Pfizer, Inc.†
Merck & Co., Inc.
Abbott Laboratories
Medtronic, Inc.†
Eli Lilly & Co.
Gilead Sciences, Inc.*†
Bristol-Myers Squibb Co.
Becton, Dickinson & Co.†
Wyeth
Medco Health Solutions, Inc.*†
Schering-Plough Corp.†
Thermo Fisher Scientific, Inc.*
Genzyme Corp.*
Aetna, Inc.
6,100
7,194
4,700
9,090
1,965
1,010
4,576
2,890
1,210
942
2,070
180
840
1,410
10,120
1,540
2,160
$
101,748
98,198
96,538
92,536
92,158
90,789
89,278
80,602
77,428
76,104
74,665
68,974
57,599
53,961
49,892
48,833
35,424
1,462
5,326
34,752
25,405
600
3,273
2,330
810
210
3,060
1,950
1,270
2,380
360
1,512
50
21,018
18,885
17,312
15,673
14,104
13,005
11,914
8,649
7,473
7,402
6,638
5,700
4
138
2
1
69
49
5,780,166
9,190
21,720
9,010
5,560
5,680
6,174
4,790
10,141
2,360
3,950
3,970
9,490
3,237
2,406
4,079
591,285
379,448
339,587
294,513
293,940
284,992
253,630
208,195
191,868
189,442
187,384
186,858
180,398
173,280
165,322
MARKET
VALUE
SHARES
Stryker Corp.†
Cardinal Health, Inc.†
Express Scripts, Inc.*†
Varian Medical Systems, Inc.*†
UnitedHealth Group, Inc.
Waters Corp.*
Biogen Idec, Inc.*†
PerkinElmer, Inc.
Amgen, Inc.*
Coventry Health Care, Inc.*†
St. Jude Medical, Inc.*
Mylan Laboratories, Inc.*†
Forest Laboratories, Inc.*
Tenet Healthcare Corp.*†
Intuitive Surgical, Inc.*
WellPoint, Inc.*†
Celgene Corp.*
Baxter International, Inc.
McKesson Corp.†
Covidien Ltd.
Laboratory Corporation of
America Holdings*†
Hospira, Inc.*
Total Health Care
INDUSTRIALS 9.2%
Union Pacific Corp.
Emerson Electric Co.
Honeywell International, Inc.
Boeing Co.
Lockheed Martin Corp.†
Burlington Northern
Santa Fe Corp.
Northrop Grumman Corp.
ITT Corporation†
Parker Hannifin Corp.†
Textron, Inc.
United Parcel Service, Inc. —
Class B
CH Robinson Worldwide, Inc.†
Fluor Corp.
Cummins, Inc.
CSX Corp.
Eaton Corp.
Goodrich Corp.
Dover Corp.
Manitowoc Co., Inc.†
3M Co.
Caterpillar, Inc.†
Norfolk Southern Corp.†
Tyco International Ltd.†
Cooper Industries Ltd. —
Class A
Ryder System, Inc.
THE
RYDEX
2,425
2,925
2,370
2,555
4,350
1,670
1,735
3,125
1,790
2,722
1,810
5,530
1,830
10,210
210
1,180
700
650
670
430
$
152,484
150,871
148,646
132,477
114,188
107,715
96,969
87,031
84,416
82,803
73,993
66,747
63,574
56,768
56,574
56,239
44,709
41,561
37,460
20,593
50
2
3,482
80
5,599,522
35,420
3,481
5,104
4,903
3,610
2,381
945,360
262,815
252,393
246,523
237,249
234,909
1,970
2,920
3,160
2,460
2,130
3,110
196,783
195,348
194,972
155,792
151,912
149,062
2,280
2,131
615
1,743
1,780
1,244
2,220
2,156
2,704
1,200
1,060
1,140
1,510
140,152
116,864
114,439
114,201
111,802
105,703
105,361
104,286
87,961
83,508
78,249
71,444
60,460
1,440
704
56,880
48,492
| 19
June 30, 2008
NOVA FUND
MARKET
VALUE
SHARES
Raytheon Co.
Jacobs Engineering Group, Inc.*
General Dynamics Corp.
Terex Corp.*
Deere & Co.
Southwest Airlines Co.†
Illinois Tool Works, Inc.†
L-3 Communications
Holdings, Inc.
Total Industrials
CONSUMER STAPLES 8.3%
Wal-Mart Stores, Inc.†
Coca-Cola Co.
CVS Caremark Corp.
PepsiCo, Inc.
Philip Morris International, Inc.†
Altria Group, Inc.
Costco Wholesale Corp.†
Colgate-Palmolive Co.
Sysco Corp.
H.J. Heinz Co.
Kraft Foods, Inc. — Class A†
Molson Coors Brewing Co. —
Class B
Dean Foods Co.*†
Kroger Co.
Anheuser-Busch Cos., Inc.
Walgreen Co.
Archer-Daniels-Midland Co.
ConAgra Foods, Inc.
SUPERVALU, INC.†
Whole Foods Market, Inc.†
Safeway, Inc.†
Total Consumer Staples
CONSUMER DISCRETIONARY 6.9%
Walt Disney Co.†
Comcast Corp. — Class A†
McDonald’s Corp.
Time Warner, Inc.
Nike, Inc. — Class B†
Johnson Controls, Inc.†
Omnicom Group, Inc.†
Carnival Corp.†
TJX Cos., Inc.†
Best Buy Co., Inc.†
Goodyear Tire & Rubber Co.*†
Ford Motor Co.*†
Genuine Parts Co.
Amazon.com, Inc.*†
News Corp. — Class A
VF Corp.†
Polo Ralph Lauren Corp.†
20 |
THE
RYDEX
685
360
270
431
230
370
20
$
38,552
29,052
22,734
22,140
16,590
4,825
950
2
182
4,757,945
10,060
10,380
6,590
8,314
4,760
5,980
13,448
3,230
3,096
6,190
3,470
4,840
611,749
583,356
342,548
328,985
302,688
295,352
276,491
226,552
213,934
170,287
166,039
137,698
2,530
8,810
6,660
2,901
1,000
630
571
420
130
130
10
137,455
131,621
130,669
83,752
62,120
20,481
19,271
8,098
4,016
3,080
286
4,256,528
10,815
13,490
4,210
14,160
2,894
5,910
3,640
4,930
5,131
3,409
6,490
22,780
2,748
1,240
5,640
1,184
1,250
337,428
255,905
236,686
209,568
172,511
169,499
163,363
162,493
161,473
134,996
115,717
109,572
109,041
90,929
84,826
84,277
78,475
MARKET
VALUE
SHARES
DIRECTV Group, Inc.*
Home Depot, Inc.†
Darden Restaurants, Inc.†
Interpublic Group of Cos., Inc.*†
Hasbro, Inc.†
Coach, Inc.*
CBS Corp.†
Clear Channel
Communications, Inc.
Lowe’s Cos., Inc.
Kohl’s Corp.*†
GameStop Corp. — Class A*†
Macy’s, Inc.†
Abercrombie & Fitch Co. —
Class A
Target Corp.†
IAC/ InterActiveCorp*
Starbucks Corp.*†
Marriott International, Inc. —
Class A†
General Motors Corp.†
Lennar Corp. — Class A†
Harman International
Industries, Inc.
Limited Brands, Inc.†
Starwood Hotels & Resorts
Worldwide, Inc.†
Yum! Brands, Inc.†
Sears Holdings Corp.*†
Whirlpool Corp.†
AutoNation, Inc.*†
Snap-On, Inc.
Big Lots, Inc.*†
Total Consumer Discretionary
UTILITIES 3.3%
Southern Co.†
American Electric
Power Co., Inc.†
Public Service Enterprise
Group, Inc.†
Duke Energy Corp.
Xcel Energy, Inc.
NiSource, Inc.
CenterPoint Energy, Inc.
Pepco Holdings, Inc.
Exelon Corp.
Integrys Energy Group, Inc.†
Nicor, Inc.†
Consolidated Edison, Inc.†
Dynegy Inc.*
FPL Group, Inc.
Pinnacle West Capital Corp.
Total Utilities
2,974
2,920
2,076
7,091
1,523
1,730
2,390
$
77,056
68,386
66,307
60,983
54,402
49,962
46,581
1,310
2,150
1,070
1,040
2,070
46,112
44,612
42,843
42,016
40,199
602
730
1,260
1,450
37,733
33,938
24,293
22,823
820
1,330
1,160
21,517
15,295
14,314
320
780
13,245
13,143
300
210
80
90
140
2
3
12,021
7,369
5,893
5,556
1,403
104
94
3,544,959
6,170
215,456
4,250
170,978
3,142
7,820
6,711
7,460
8,140
5,060
1,400
2,440
2,702
2,079
6,850
190
210
144,312
135,912
134,690
133,683
130,647
129,789
125,944
124,025
115,078
81,268
58,568
12,460
6,462
1,719,272
June 30, 2008
NOVA FUND
MARKET
VALUE
SHARES
MATERIALS 3.0%
Freeport-McMoRan Copper
& Gold, Inc.†
2,422
Monsanto Co.
2,050
Dow Chemical Co.†
5,512
Newmont Mining Corp.†
3,144
713
Praxair, Inc.
1,290
Nucor Corp.†
1,240
PPG Industries, Inc.†
1,365
Ashland, Inc.†
1,345
E.I. du Pont de Nemours and Co.
1,040
Alcoa, Inc.
920
International Paper Co.†
1,320
Bemis Co.
1,070
MeadWestvaco Corp.
510
Air Products & Chemicals, Inc.
70
Total Materials
TELECOMMUNICATION SERVICES 2.9%
AT&T, Inc.
20,450
Verizon Communications, Inc.†
10,130
Embarq Corp.
3,060
CenturyTel, Inc.†
3,970
Windstream Corp.†
7,938
Sprint Nextel Corp.†
8,080
Total Telecommunication Services
Total Common Stocks
(Cost $38,725,765)
SECURITIES LENDING COLLATERAL 19.2%
Mount Vernon Securities
Lending Trust Prime
Portfolio (Note 9)
9,900,011
Total Securities Lending Collateral
(Cost $9,900,011)
FACE
AMOUNT
REPURCHASE AGREEMENT 1.5%
Repurchase Agreement (Note 5)
Lehman Brothers Holdings, Inc.
issued 06/30/08 at 0.25%
due 07/01/08††
$ 758,592
Total Repurchase Agreement
(Cost $758,592)
Total Investments 104.7%
(Cost $49,384,368)
Liabilities in Excess of
Other Assets – (4.7)%
Net Assets – 100.0%
*
**
†
††
$
283,834
259,202
192,424
163,991
131,748
121,570
92,591
78,310
64,829
44,606
32,771
30,756
23,989
12,158
6,920
1,539,699
688,961
358,602
144,646
141,292
97,955
76,760
1,508,216
UNREALIZED
LOSS
CONTRACTS
FUTURES CONTRACTS PURCHASED
September 2008 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $12,487,313)
195
$
(585,433)
$
(211,629)
UNITS
EQUITY INDEX SWAP AGREEMENTS
Lehman Brothers Finance S.A.
September 2008 S&P 500
Index Swap, Terminating
09/16/08**
(Notional Market Value
$7,373,206)
5,760
Goldman Sachs International
June 2008 S&P 500 Index
Swap, Terminating 06/30/08**
$14,275,584)
11,153
(Total Notional Market
Value $21,648,790)
(265,466)
$
(477,095)
43,296,313
9,900,011
9,900,011
758,592
758,592
$53,954,916
$ (2,409,726)
$51,545,190
Non-Income Producing Security.
Total Return based on S&P 500 Index +/- financing at a variable rate.
All or a portion of this security is on loan at June 30, 2008 — See Note 9.
All or a portion of this security is held as equity index swap collateral at June 30, 2008.
THE
RYDEX
| 21
(Unaudited)
June 30, 2008
FACE
AMOUNT
MARKET
VALUE
FEDERAL AGENCY DISCOUNT NOTES 5.5%
Federal Farm Credit Bank*
2.02% due 07/01/08
$ 3,000,000 $ 3,000,000
Farmer Mac*
2.00% due 07/01/08
3,000,000
3,000,000
Total Federal Agency Discount Notes
(Cost $6,000,000)
6,000,000
REPURCHASE AGREEMENTS 68.4%
Repurchase Agreements (Note 5)
issued 06/30/08 at 0.25%
due 07/01/08†
19,758,497
Mizuho Financial Group, Inc.
issued 06/30/08 at 1.75%
due 07/01/08
18,497,802
UBS Financial Services, Inc.
issued 06/30/08 at 1.74%
due 07/01/08
18,497,802
Morgan Stanley issued
06/30/08 at 1.70%
due 07/01/08
18,497,802
Total Repurchase Agreements
(Cost $75,251,903)
(Cost $81,251,903)
Other Assets in Excess of
Liabilities – 26.1%
19,758,497
18,497,802
18,497,802
18,497,802
UNREALIZED
GAIN
CONTRACTS
FUTURES CONTRACTS SOLD SHORT
389
$
553,837
$
589,750
UNITS
SOLD SHORT
$13,504,073)
10,550
June 2008 S&P 500 Index
$71,235,635)
55,653
Value $84,739,708)
292,670
$
882,420
75,251,903
$ 81,251,903
$ 28,703,484
$109,955,387
* The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the
U.S. Government.
** Total Return based on S&P 500 Index +/- financing at a variable rate.
† All or a portion of this security is pledged as equity index swap collateral at June 30, 2008.
22 |
THE
RYDEX
(Unaudited)
June 30, 2008
NASDAQ-100 FUND
®
SHARES
MARKET
VALUE
COMMON STOCKS 74.6%
Apple, Inc.*
37,400
Qualcomm, Inc.
62,990
Microsoft Corp.
95,360
4,310
Research In Motion Ltd.*†
16,810
Intel Corp.
69,530
Oracle Corp.*
62,610
55,990
19,950
eBay, Inc.*
27,590
Symantec Corp.*
34,130
Dell, Inc.*†
23,710
Linear Technology Corp.†
14,990
Fiserv, Inc.*†
10,280
Yahoo!, Inc.*†
21,007
CA, Inc.
17,240
14,440
Marvell Technology
Group Ltd.*
21,780
17,012
Activision, Inc.*
10,690
Nvidia Corp.*†
18,670
Xilinx, Inc.†
12,450
Solutions Corp. —
Class A*†
9,250
Paychex, Inc.
8,760
Flextronics International Ltd.*
25,870
Electronic Arts, Inc.*†
5,470
Altera Corp.
11,500
Akamai Technologies, Inc.*†
6,840
Baidu.com - SP ADR*†
760
Applied Materials, Inc.†
11,370
Autodesk, Inc.*†
6,170
Microchip Technology, Inc.†
6,440
NetApp, Inc.*†
8,530
15,490
Intuit, Inc.*†
5,970
Check Point Software
Technologies Ltd.*
6,150
Infosys Technologies Ltd. —
SP ADR†
2,880
KLA-Tencor Corp.
2,910
SanDisk Corp.*†
5,380
Cadence Design Systems, Inc.*†
5,890
Logitech International SA*†
1,750
VeriSign, Inc.*†
630
Citrix Systems, Inc.*
730
Tellabs, Inc.*†
1,200
Telefonaktiebolaget
LM Ericsson — SP ADR†
360
$ 6,262,256
2,794,866
2,623,354
2,268,870
1,965,089
1,493,504
1,314,810
1,302,327
785,830
754,035
660,415
518,775
488,224
466,404
434,005
398,072
394,068
384,635
377,326
364,208
349,502
314,362
300,717
274,013
243,178
243,032
238,050
237,964
237,850
217,053
208,608
196,678
184,760
168,531
164,593
145,571
125,165
118,466
100,606
59,489
46,900
23,814
21,469
5,580
3,744
30,280,768
HEALTH CARE 11.4%
Genzyme Corp.*
Celgene Corp.*
Teva Pharmaceutical
Industries Ltd. — SP ADR†
Amgen, Inc.*
Henry Schein, Inc.*†
Hologic, Inc.*†
DENTSPLY International, Inc.
Cephalon, Inc.*†
Vertex Pharmaceuticals, Inc.*†
Amylin Pharmaceuticals, Inc.*†
Sepracor, Inc.*†
Total Health Care
Starbucks Corp.*†
DISH Network Corp. —
Class A*
Staples, Inc.†
Wynn Resorts Ltd.†
Garmin Ltd.†
Apollo Group, Inc. —
Class A*†
IAC/InterActiveCorp*†
Liberty Global, Inc. —
Class A*†
Liberty Media Corp –
Interactive*†
Petsmart, Inc.†
Focus Media Holding —
SP ADR*†
Bed Bath & Beyond, Inc.*†
Virgin Media, Inc.†
Sirius Satellite Radio, Inc.*†
Expedia, Inc.*†
Ross Stores, Inc.†
INDUSTRIALS 3.2%
CH Robinson
Worldwide, Inc.†
Paccar, Inc.†
Foster Wheeler Ltd.*†
Fastenal Co.†
Expeditors International
of Washington, Inc.†
Joy Global, Inc.†
THE
RYDEX
SHARES
MARKET
VALUE
29,920
12,705
11,920
$ 1,584,264
915,014
761,331
15,570
12,180
9,220
12,240
1,290
6,505
13,500
6,680
1,920
1,900
1,020
450
713,106
680,740
578,278
577,238
347,526
335,463
294,300
245,824
128,045
63,593
25,898
8,964
7,259,584
46,000
29,640
8,720
30,210
872,620
767,972
639,438
475,505
13,190
4,350
12,650
3,330
5,890
386,203
320,421
300,437
270,895
252,328
4,560
10,040
201,826
193,571
5,930
186,380
11,910
8,320
175,792
165,984
4,060
3,810
6,880
47,000
4,140
480
112,543
107,061
93,637
90,240
76,093
17,050
5,705,996
8,240
8,370
4,320
5,930
451,881
350,117
316,008
255,939
4,940
2,270
212,420
172,134
| 23
June 30, 2008
NASDAQ-100 FUND
®
MARKET
VALUE
SHARES
Ryanair Holdings PLC —
SP ADR*†
4,310
Stericycle, Inc.*†
1,910
UAL Corp.†
6,250
Monster Worldwide, Inc.*
790
Cintas Corp.
360
Total Industrials
9,760
5,850
Hansen Natural Corp.*†
1,730
Millicom International
Cellular SA†
3,010
NII Holdings, Inc. — Class B*†
6,300
Level 3 Communications,
Inc.*†
45,650
Leap Wireless International,
Inc. — Class B*†
1,890
MATERIALS 0.4%
Steel Dynamics, Inc.†
6,230
Sigma-Aldrich Corp.
240
Total Materials
ENERGY 0.1%
Patterson-UTI Energy, Inc.†
900
Total Energy
Total Common Stocks
(Cost $29,520,834)
Lending Trust Prime
Portfolio (Note 9)
12,116,434
(Cost $12,116,434)
$
123,568
98,747
32,625
16,282
9,544
2,039,265
MARKET
VALUE
(Cost $41,881,361)
Other Assets in Excess
of Liabilities – 5.9%
$59,634,901
$ 3,746,474
$63,381,375
UNREALIZED
LOSS
CONTRACTS
684,566
138,586
49,859
873,011
September 2008 Nasdaq 100 Index
311,535
299,187
134,668
81,591
826,981
243,406
12,927
256,333
32,436
32,436
261
$
(537,958)
$
(160,752)
UNITS
June 2008 Nasdaq 100 Index
$2,613,753)
1,423
September 2008
Nasdaq 100 Index Swap,
Terminating 09/16/08**
$3,779,506)
2,057
(Total Notional Market Value
$6,393,259)
(162,452)
$
(323,204)
47,274,374
12,116,434
12,116,434
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08††
$244,093
(Cost $244,093)
*
**
†
††
24 |
244,093
244,093
Total Return based on Nasdaq 100 Index +/- financing at a variable rate.
All or a portion of this security is pledged as equity index swap collateral at June 30, 2008.
ADR — American Depository Receipt.
THE
RYDEX
(Unaudited)
June 30, 2008
INVERSE NASDAQ-100 STRATEGY FUND
®
FACE
AMOUNT
MARKET
VALUE
Federal Home Loan Bank*
2.08% due 07/02/08
$2,000,000
$ 1,999,885
Farmer Mac*
2.00% due 07/01/08
1,000,000
1,000,000
Fannie Mae*
2.10% due 07/07/08
1,000,000
999,650
(Cost $3,999,535)
3,999,535
issued 06/30/08 at 0.25%
due 07/01/08†
2,741,891
issued 06/30/08 at 1.75%
due 07/01/08
2,641,431
issued 06/30/08 at 1.74%
due 07/01/08
2,641,431
Morgan Stanley issued
06/30/08 at 1.70% due
07/01/08
2,641,431
(Cost $10,666,184)
(Cost $14,665,719)
2,741,891
2,641,431
2,641,431
UNREALIZED
GAIN
CONTRACTS
234
$
492,526
$
553,279
UNITS
SOLD SHORT
June 2008 Nasdaq 100 Index
$11,329,951)
6,167
September 2008 Nasdaq 100
Index Swap, Terminating 09/16/08**
$1,345,296)
732
Value $12,675,247)
76,086
$
629,365
2,641,431
10,666,184
$14,665,719
$ 6,763,639
$21,429,358
U.S. Government.
** Total Return based on Nasdaq 100 Index +/- financing at a variable rate.
† All or portion of this security was pledged as equity index swap collateral at June 30, 2008.
THE
RYDEX
| 25
(Unaudited)
June 30, 2008
MARKET
VALUE
SHARES
COMMON STOCKS 76.8%
Microsoft Corp.
13,790
Machines Corp.
2,370
Apple, Inc.*
1,520
10,180
Intel Corp.
9,870
400
Hewlett-Packard Co.
4,250
Oracle Corp.*
6,840
Qualcomm, Inc.
2,790
Dell, Inc.*†
3,480
Texas Instruments, Inc.†
2,280
Corning, Inc.
2,710
EMC Corp*†
3,560
eBay, Inc.*
1,900
Yahoo!, Inc.*†
2,370
2,340
Automatic Data Processing,
Inc.†
890
920
Western Union Co.†
1,280
Tyco Electronics Ltd.
820
Motorola, Inc.†
3,890
Symantec Corp.*
1,450
MEMC Electronic
Materials, Inc.*
390
540
Agilent Technologies, Inc.*†
620
870
Xerox Corp.
1,550
770
900
Nvidia Corp.*†
950
Paychex, Inc.
550
500
Analog Devices, Inc.†
500
CA, Inc.
670
Intuit, Inc.*
550
Sun Microsystems, Inc.*
1,340
Autodesk, Inc.*†
394
VeriSign, Inc.*†
340
NetApp, Inc.*†
590
Fiserv, Inc.*
280
Linear Technology Corp.
380
Computer Sciences Corp.*†
260
Xilinx, Inc.
480
KLA-Tencor Corp.
290
BMC Software, Inc.*
320
Fidelity National Information
Services, Inc.
290
Altera Corp.
510
26 |
THE
RYDEX
$
379,363
280,916
254,509
236,787
212,008
210,568
187,892
143,640
123,792
76,142
64,205
62,465
52,296
51,927
48,964
44,671
37,291
36,239
31,642
29,372
28,553
28,057
24,001
23,992
22,035
21,437
21,018
21,013
19,962
17,784
17,204
16,255
15,885
15,470
15,163
14,579
13,321
12,852
12,779
12,704
12,377
12,178
12,120
11,806
11,520
10,704
10,557
MARKET
VALUE
SHARES
Microchip Technology, Inc.
Affiliated Computer
Services, Inc. — Class A*†
Micron Technology, Inc.*†
National Semiconductor Corp.
Total System Services, Inc.
SanDisk Corp.*†
Teradata Corp.*
LSI Logic Corp.*†
Advanced Micro
Devices, Inc.*†
Jabil Circuit, Inc.
Molex, Inc.
Lexmark International, Inc.*†
JDS Uniphase Corp.*
Compuware Corp.*
Novell, Inc.*
Ciena Corp.*†
Novellus Systems, Inc.*†
QLogic Corp.*†
Teradyne, Inc.*
Tellabs, Inc.*†
Convergys Corp.*
Unisys Corp.*
ENERGY 12.4%
Exxon Mobil Corp.
Chevron Corp.
ConocoPhillips
Schlumberger Ltd.
Occidental Petroleum Corp.
Devon Energy Corp.
Transocean, Inc.*†
Halliburton Co.†
Apache Corp.
Marathon Oil Corp.
National-Oilwell Varco, Inc.*†
Hess Corp.
XTO Energy, Inc.†
Anadarko Petroleum Corp.
Weatherford
International Ltd.*
Chesapeake Energy Corp.†
Baker Hughes, Inc.
Peabody Energy Corp.†
Williams Cos., Inc.
Valero Energy Corp.
Murphy Oil Corp.†
Spectra Energy Corp.
Noble Corp.
290
320
310
$
10,089
9,773
9,117
170
1,310
370
330
390
310
1,100
9,093
7,860
7,600
7,333
7,293
7,173
6,754
1,050
360
240
160
400
450
610
150
160
230
290
690
205
610
6,122
5,908
5,858
5,349
4,544
4,293
3,593
3,476
3,390
3,356
3,210
3,209
3,046
2,410
3,159,864
9,110
3,560
2,660
2,050
1,410
760
540
1,500
570
1,220
710
480
880
800
802,864
352,903
251,077
220,231
126,703
91,322
82,291
79,605
79,230
63,281
62,991
60,571
60,289
59,872
1,170
430
830
530
470
1,010
900
310
330
1,090
460
58,020
56,416
54,747
46,290
41,383
40,713
37,062
34,835
32,356
31,327
29,882
June 30, 2008
MARKET
VALUE
SHARES
Noble Energy, Inc.†
Smith International, Inc.
Southwestern Energy Co.*
El Paso Corp.
Nabors Industries Ltd.*†
Cameron International
Corp.*†
ENSCO International, Inc.
Range Resources Corp.
BJ Services Co.
Massey Energy Co.
Cabot Oil & Gas Corp.
Rowan Cos., Inc.†
Sunoco, Inc.†
Tesoro Corp.†
Total Energy
FINANCIALS 10.9%
Citigroup, Inc.†
Group, Inc.
Goldman Sachs Group, Inc.†
U.S. Bancorp†
Bank of New York
Mellon Corp.†
Morgan Stanley†
MetLife, Inc.†
Wachovia Corp.†
AFLAC, Inc.†
State Street Corp.
Travelers Cos, Inc.
Prudential Financial, Inc.†
Allstate Corp.†
Fannie Mae†
Simon Property Group, Inc.†
Hartford Financial
Services Group, Inc.
CME Group, Inc.†
PNC Financial
Services Group, Inc.
Charles Schwab Corp.
ACE Ltd.
Chubb Corp.†
Loews Corp.†
T. Rowe Price Group, Inc.†
Franklin Resources, Inc.
ProLogis†
Lehman Brothers
Holdings, Inc.†
290
340
590
1,210
490
370
250
270
510
140
170
190
200
230
$
29,162
28,268
28,090
26,305
24,123
20,480
20,185
17,696
16,289
13,125
11,514
8,883
8,138
4,547
3,113,066
5,950
7,670
9,390
5,690
204,144
183,083
157,376
135,137
4,630
680
3,000
2,000
122,510
118,932
83,670
75,340
1,970
1,910
1,220
3,680
1,700
810
740
1,040
750
950
1,830
390
74,525
68,894
64,379
57,150
53,907
50,868
47,353
45,136
44,805
43,310
35,703
35,057
540
90
34,868
34,487
600
1,600
570
630
620
450
270
650
450
34,260
32,864
31,401
30,876
29,078
25,411
24,745
24,706
24,458
1,200
23,772
MARKET
VALUE
SHARES
Aon Corp.
Marsh & McLennan Cos., Inc.†
NYSE Euronext
Northern Trust Corp.
SunTrust Banks, Inc.
Progressive Corp.†
BB&T Corp.†
Lincoln National Corp.
Vornado Realty Trust†
Boston Properties, Inc.
Principal Financial
Group, Inc.†
Freddie Mac†
Public Storage†
General Growth
Properties, Inc.†
SLM Corp.*†
Ameriprise Financial, Inc.
KIMCO Realty Corp.†
Hudson City Bancorp, Inc.
Leucadia National Corp.
Class A
Regions Financial Corp.†
HCP, Inc.†
IntercontinentalExchange, Inc.*
Plum Creek Timber Co., Inc.
(REIT)
Unum Group
Moody’s Corp.†
AvalonBay Communities, Inc.
Assurant, Inc.
Discover Financial Services†
Legg Mason, Inc.
Safeco Corp.†
KeyCorp†
M&T Bank Corp.
Torchmark Corp.
American Capital
Strategies Ltd.†
Realty Corp.
Marshall & Ilsley Corp.†
Janus Capital Group, Inc.
Comerica, Inc.†
XL Capital Ltd.†
Sovereign Bancorp, Inc.†
Zions Bancorporation
THE
RYDEX
510
875
450
330
610
1,160
940
450
230
210
$
23,429
23,231
22,797
22,628
22,094
21,715
21,404
20,394
20,240
18,946
450
1,110
458
210
18,887
18,204
17,528
16,966
460
800
380
440
890
300
16,114
15,480
15,455
15,189
14,845
14,082
750
1,200
400
110
13,358
13,092
12,724
12,540
290
900
600
350
130
170
830
240
990
150
840
130
1,820
150
12,386
12,285
12,270
12,054
11,591
11,213
10,931
10,457
10,078
10,074
9,223
9,170
8,973
8,798
350
8,320
210
280
450
250
250
310
1,310
830
190
7,289
7,112
6,899
6,618
6,408
6,374
6,249
6,109
5,983
| 27
June 30, 2008
MARKET
VALUE
SHARES
CB Richard Ellis Group, Inc. —
Class A*
Federated Investors, Inc. —
Class B
Apartment Investment &
Management Co. — Class A
Countrywide Financial Corp.†
CIT Group, Inc.†
MBIA, Inc.†
MGIC Investment Corp.†
Total Financials
HEALTH CARE 9.2%
Pfizer, Inc.†
Abbott Laboratories
Merck & Co., Inc.
Wyeth
Medtronic, Inc.†
Amgen, Inc.*
Eli Lilly & Co.
Bristol-Myers Squibb Co.
Baxter International, Inc.
Schering-Plough Corp.†
Celgene Corp.*
WellPoint, Inc.*†
Covidien Ltd.
Medco Health
Solutions, Inc.*†
Thermo Fisher Scientific, Inc.*
Aetna, Inc.
Genzyme Corp.*
Boston Scientific Corp.*
Allergan, Inc.
Zimmer Holdings, Inc.*
McKesson Corp.
Stryker Corp.
CIGNA Corp.
C.R. Bard, Inc.†
Quest Diagnostics, Inc.
Humana, Inc.*
28 |
THE
RYDEX
300
$
5,760
150
5,163
150
1,010
630
490
810
320
360
220
5,109
4,293
3,635
3,337
2,543
2,378
1,580
1,344
2,735,553
4,860
11,660
2,660
3,700
2,300
1,940
1,880
1,590
1,710
3,410
1,080
2,120
2,790
750
900
860
312,692
203,700
140,900
139,453
110,308
100,395
88,661
84,191
78,934
70,007
69,055
55,650
54,935
47,903
42,894
41,185
870
720
420
840
460
620
513
2,320
530
434
400
480
410
580
520
480
60
170
41,064
40,126
34,146
34,045
33,129
31,980
28,672
28,513
27,587
27,220
27,220
26,837
25,781
23,710
18,065
16,987
16,164
14,952
190
270
290
13,230
13,087
11,533
MARKET
VALUE
SHARES
Waters Corp.*
Hospira, Inc.*
AmerisourceBergen Corp.
Applied Biosystems Inc.
Barr Pharmaceuticals, Inc.*
Coventry Health Care, Inc.*
IMS Health, Inc.
Patterson Cos., Inc.*
Mylan Laboratories, Inc.*†
Millipore Corp.*†
PerkinElmer, Inc.
Watson Pharmaceuticals, Inc.*
King Pharmaceuticals, Inc.*
Total Health Care
INDUSTRIALS 8.5%
United Parcel Service, Inc. —
Class B
Boeing Co.
3M Co.
Union Pacific Corp.
Emerson Electric Co.
Honeywell International, Inc.
General Dynamics Corp.†
Deere & Co.
Burlington Northern
Santa Fe Corp.
CSX Corp.
FedEx Corp.†
Raytheon Co.
Norfolk Southern Corp.†
Danaher Corp.†
Illinois Tool Works, Inc.†
Waste Management, Inc.
Fluor Corp.
Paccar, Inc.
Eaton Corp.
Precision Castparts Corp.
Cummins, Inc.
Parker Hannifin Corp.†
Ingersoll-Rand Co. —
Class A†
Textron, Inc.
ITT Corporation
L-3 Communications
Holdings, Inc.†
Jacobs Engineering Group, Inc.*
220
170
270
270
290
180
260
310
220
520
90
200
180
830
420
$
11,407
10,965
10,830
10,797
9,709
8,114
7,909
7,223
6,466
6,276
6,107
5,570
4,891
4,615
4,397
2,290,187
17,170
458,267
1,760
1,680
1,300
1,210
1,060
890
1,340
1,280
684
580
740
108,187
103,656
85,436
84,204
78,249
67,195
66,263
64,358
57,593
57,223
53,376
510
700
530
730
650
590
440
830
680
850
150
630
280
240
350
290
50,944
43,967
41,759
41,084
40,735
39,471
34,012
33,233
32,307
32,053
27,912
26,353
23,792
23,129
22,932
20,683
550
420
310
20,587
20,131
19,632
210
210
19,083
16,947
June 30, 2008
MARKET
VALUE
SHARES
Southwest Airlines Co.†
Dover Corp.
Expeditors International of
Washington, Inc.
Rockwell Collins, Inc.
Pitney Bowes, Inc.
Cooper Industries Ltd. —
Class A
Rockwell Automation, Inc.
RR Donnelley & Sons Co.†
Goodrich Corp.
Masco Corp.†
W.W. Grainger, Inc.
Terex Corp.*
Pall Corp.
Avery Dennison Corp.
Equifax, Inc.
Allied Waste Industries, Inc.*
Manitowoc Co., Inc.
Ryder System, Inc.
Robert Half International, Inc.
Cintas Corp.
Total Industrials
Wal-Mart Stores, Inc.
Philip Morris International, Inc.†
Coca-Cola Co.
PepsiCo, Inc.
CVS Caremark Corp.
Kraft Foods, Inc. — Class A†
Altria Group, Inc.
Walgreen Co.
Kimberly-Clark Corp.
Archer-Daniels-Midland Co.
General Mills, Inc.†
Kroger Co.
WM Wrigley Jr Co.
Sysco Corp.
Avon Products, Inc.†
H.J. Heinz Co.
Safeway, Inc.†
Kellogg Co.
Lorillard, Inc.*
ConAgra Foods, Inc.
Sara Lee Corp.†
Reynolds American, Inc.
UST, Inc.†
1,260
330
291
$
16,430
15,962
15,958
370
280
360
15,910
13,429
12,276
300
250
360
220
620
110
170
210
180
220
580
220
100
270
220
210
11,850
10,933
10,688
10,441
9,753
8,998
8,733
8,333
7,907
7,396
7,320
7,157
6,888
6,472
5,832
4,328
2,137,747
5,260
4,005
3,630
3,440
2,730
2,460
1,230
2,610
3,610
880
1,710
750
720
1,110
580
1,140
370
1,030
740
540
750
440
300
840
1,210
300
250
319,861
225,081
179,286
178,811
173,601
97,342
76,408
74,254
74,222
60,808
55,592
52,605
43,042
37,462
35,247
32,912
28,779
28,335
26,655
25,839
21,412
21,129
20,748
16,195
14,822
14,001
13,652
MARKET
VALUE
SHARES
Molson Coors Brewing Co. —
Class B
Campbell Soup Co.
Clorox Co.
SUPERVALU, INC.
Brown-Forman Corp. —
Class B
Hershey Co.†
Estee Lauder Cos., Inc. —
Class A†
Coca-Cola Enterprises, Inc.†
McCormick & Co., Inc.
Constellation Brands, Inc. —
Class A*
Pepsi Bottling Group, Inc.
Dean Foods Co.*†
McDonald’s Corp.
Walt Disney Co.†
Time Warner, Inc.
Home Depot, Inc.†
Target Corp.†
News Corp. — Class A
Lowe’s Cos., Inc.†
Amazon.com, Inc.*
Viacom, Inc. — Class B*
Clear Channel
Communications, Inc.
Johnson Controls, Inc.†
Staples, Inc.
Carnival Corp.†
Omnicom Group, Inc.
TJX Cos., Inc.†
CBS Corp.†
McGraw-Hill Cos., Inc.†
Kohl’s Corp.*†
Starbucks Corp.*†
Ford Motor Co.*†
Coach, Inc.*
Fortune Brands, Inc.†
Harley-Davidson, Inc.†
Macy’s, Inc.†
J.C. Penney Co., Inc.
Marriott International, Inc. —
Class A
THE
RYDEX
240
370
230
360
$
13,039
12,380
12,006
11,120
140
290
10,580
9,506
190
490
220
460
8,826
8,477
7,845
6,872
340
230
240
260
6,752
6,422
5,686
5,101
2,072,713
1,950
3,280
5,100
6,170
2,920
1,340
3,970
2,520
530
650
1,090
1,220
109,629
102,336
96,747
91,316
68,386
62,297
59,709
52,290
38,865
38,746
33,289
31,610
860
1,020
820
1,210
750
550
595
730
1,170
550
530
1,250
3,860
590
260
410
725
380
30,272
29,254
28,774
28,737
24,720
24,684
23,562
22,973
22,803
22,066
21,221
19,675
18,567
17,039
16,227
14,867
14,079
13,790
520
13,645
| 29
June 30, 2008
MARKET
VALUE
SHARES
International Game
Technology, Inc.†
The Gap, Inc.†
Starwood Hotels & Resorts
Worldwide, Inc.†
H&R Block, Inc.†
Genuine Parts Co.
VF Corp.
Mattel, Inc.
Apollo Group, Inc. — Class A*
Abercrombie & Fitch Co. —
Class A†
Nordstrom, Inc.
Tiffany & Co.†
Hasbro, Inc.†
AutoZone, Inc.*
Gannett Co., Inc.
Newell Rubbermaid, Inc.
Whirlpool Corp.
Sherwin-Williams Co.
Darden Restaurants, Inc.
Goodyear Tire & Rubber Co.*†
Eastman Kodak Co.†
Interpublic Group of Cos., Inc.*†
Expedia, Inc.*†
Polo Ralph Lauren Corp.
Stanley Works†
EW Scripps Co. — Class A
IAC/ InterActiveCorp*†
Washington Post Co. — Class B†
Black & Decker Corp.†
Wyndham Worldwide Corp.
Snap-On, Inc.
D.R. Horton, Inc.†
Office Depot, Inc.*
Family Dollar Stores, Inc.
Leggett & Platt, Inc.†
Big Lots, Inc.*†
Industries, Inc.
Wendy’s International, Inc.
New York Times Co. —
Class A†
Pulte Homes, Inc.
Centex Corp.†
RadioShack Corp.†
Liz Claiborne, Inc.
30 |
THE
RYDEX
530
770
$
13,239
12,836
320
450
560
280
970
280
150
620
230
12,822
12,645
11,984
11,312
11,155
11,110
10,677
10,614
10,180
150
300
220
120
510
240
70
390
480
130
170
241
410
500
810
360
100
140
150
310
10
100
300
100
470
460
240
280
140
9,402
9,090
8,965
8,839
8,593
8,573
8,471
8,451
8,059
8,025
7,808
7,698
7,310
7,215
6,966
6,617
6,278
6,276
6,231
5,977
5,869
5,751
5,373
5,201
5,099
5,032
4,786
4,696
4,374
100
150
4,139
4,083
250
370
240
210
220
230
160
3,848
3,563
2,962
2,808
2,699
2,305
2,264
MARKET
VALUE
SHARES
KB HOME†
Jones Apparel Group, Inc.†
Meredith Corp.†
Dillard’s, Inc. — Class A†
UTILITIES 3.1%
Exelon Corp.
Dominion Resources, Inc.†
Southern Co.†
FPL Group, Inc.
FirstEnergy Corp.
Public Service Enterprise
Group, Inc.
Entergy Corp.
Duke Energy Corp.
PPL Corp.
Edison International†
American Electric
Power Co., Inc.
Constellation Energy
Group, Inc.
PG&E Corp.
Sempra Energy†
AES Corp.*†
Questar Corp.
Progress Energy, Inc.†
Ameren Corp.
Xcel Energy, Inc.
Allegheny Energy, Inc.
DTE Energy Co.
NiSource, Inc.
TECO Energy, Inc.
Dynegy Inc.*
Integrys Energy Group, Inc.
CMS Energy Corp.†
Pinnacle West Capital Corp.
Nicor, Inc.†
Total Utilities
MATERIALS 3.0%
Monsanto Co.
& Gold, Inc.†
E.I. du Pont de Nemours
and Co.†
Dow Chemical Co.†
Praxair, Inc.
Alcoa, Inc.
Newmont Mining Corp.†
Nucor Corp.†
130
150
60
100
$
2,201
2,063
1,697
1,157
1,557,563
1,120
1,000
1,320
700
530
100,755
47,490
46,094
45,906
43,635
880
330
2,180
640
560
40,418
39,758
37,888
33,453
28,773
690
27,759
310
620
430
1,160
300
450
470
360
740
290
280
570
350
470
360
850
130
390
170
80
25,451
24,608
24,273
22,284
21,312
18,824
18,372
15,203
14,852
14,532
11,883
9,149
8,978
8,422
7,736
7,268
6,608
5,811
5,231
3,407
766,133
950
120,118
660
77,345
1,550
1,600
540
1,410
780
540
200
66,479
55,856
50,889
50,224
40,685
40,322
36,956
June 30, 2008
SHARES
Air Products & Chemicals, Inc.
360
Weyerhaeuser Co.†
360
730
PPG Industries, Inc.
280
AK Steel Holding Corp.
190
Ecolab, Inc.†
300
Sigma-Aldrich Corp.
220
Vulcan Materials Co.†
190
Rohm & Haas Co.
220
Allegheny Technologies, Inc.†
170
Eastman Chemical Co.†
130
Ball Corp.
170
MeadWestvaco Corp.
300
International Flavors &
Fragrances, Inc.
140
Sealed Air Corp.
270
Pactiv Corp.*
220
Ashland, Inc.†
90
Bemis Co.
170
Hercules, Inc.
190
Titanium Metals Corp.†
170
Total Materials
AT&T, Inc.
10,238
4,910
Sprint Nextel Corp.
4,910
American Tower Corp. —
Class A*
680
Embarq Corp.
250
Qwest Communications
International, Inc.†
2,620
Windstream Corp.†
770
CenturyTel, Inc.†
180
Citizens Communications Co.†
560
Total Common Stocks
(Cost $17,107,685)
Lending Trust Prime
Portfolio (Note 9)
3,676,802
(Cost $3,676,802)
*
**
†
††
$
MARKET
VALUE
FACE
AMOUNT
35,590
18,410
17,009
16,064
13,110
12,897
11,849
11,358
10,217
10,078
8,952
8,116
7,152
issued 06/30/08 at 0.25%
due 07/01/08††
$999,779
issued 06/30/08 at 1.75%
due 07/01/08
609,120
issued 06/30/08 at 1.74%
due 07/01/08
609,120
Morgan Stanley issued 06/30/08
at 1.70% due 07/01/08
609,120
(Cost $2,827,139)
(Cost $23,611,626)
Liabilities in Excess
of Other Assets – (2.8)%
5,468
5,133
4,671
4,338
3,811
3,217
2,378
748,692
MARKET
VALUE
$
609,120
609,120
609,120
2,827,139
$25,723,939
$ (712,529)
$25,011,410
UNREALIZED
LOSS
CONTRACTS
344,918
173,814
46,645
28,730
11,818
10,297
9,502
6,406
6,350
638,480
19,219,998
3,676,802
3,676,802
185
999,779
$
(424,676)
$
(126,237)
UNITS
$3,741,979)
2,923
June 2008 S&P 500 Index Swap,
$15,594,969)
12,184
Value $19,336,948)
(557,684)
$
(683,921)
Total Return based on S&P 500 Index +/- financing at a variable data.
REIT — Real Estate Investment Trust.
THE
RYDEX
| 31
(Unaudited)
June 30, 2008
NASDAQ-100 2x STRATEGY FUND
®
SHARES
MARKET
VALUE
COMMON STOCKS 51.6%
Apple, Inc.*
15,400
Microsoft Corp.
40,150
Qualcomm, Inc.
24,460
1,820
Research In Motion Ltd.*†
7,070
26,438
Oracle Corp.*
26,910
Intel Corp.
25,130
eBay, Inc.*
12,300
6,532
Symantec Corp.*
10,997
Dell, Inc.*†
9,310
4,020
Yahoo!, Inc.*†
8,290
8,780
CA, Inc.
6,180
Intuit, Inc.*
5,070
5,100
Paychex, Inc.
4,280
Nvidia Corp.*†
6,820
Marvell Technology Group Ltd.*
7,220
Linear Technology Corp.†
3,710
Xilinx, Inc.†
4,640
Fiserv, Inc.*†
2,570
3,530
Activision, Inc.*
3,320
Altera Corp.
5,280
Flextronics International Ltd.*
11,370
KLA-Tencor Corp.
2,580
Baidu.com - SP ADR*†
330
Autodesk, Inc.*†
2,917
NetApp, Inc.*†
4,500
4,320
VeriSign, Inc.*†
2,299
2,730
2,020
Check Point Software
Technologies Ltd.*
2,700
Infosys Technologies Ltd. —
SP ADR†
1,410
Logitech International SA*†
2,200
Microchip Technology, Inc.†
1,930
Lam Research Corp.*†
1,620
SanDisk Corp.*†
2,580
4,260
Cadence Design Systems, Inc.*†
3,380
32 |
THE
RYDEX
$ 2,578,576
1,104,527
1,085,290
958,084
826,483
614,948
565,110
539,792
336,159
257,296
212,792
203,703
178,609
171,271
167,610
142,696
139,780
139,179
133,878
127,670
127,505
120,835
117,160
116,601
114,760
113,112
109,296
106,878
105,032
103,277
98,624
97,470
95,818
86,902
80,289
70,276
63,909
61,279
58,960
58,942
58,563
48,246
46,349
34,138
12,577,674
MARKET
VALUE
SHARES
HEALTH CARE 7.5%
Teva Pharmaceutical
Celgene Corp.*
Genzyme Corp.*
Amgen, Inc.*
Hologic, Inc.*†
Vertex Pharmaceuticals, Inc.*†
Cephalon, Inc.*†
Patterson Cos., Inc.*†
Amylin Pharmaceuticals, Inc.*†
Total Health Care
Starbucks Corp.*†
Staples, Inc.
Wynn Resorts Ltd.†
Garmin Ltd.†
Liberty Media Corp –
Interactive*†
Apollo Group, Inc. — Class A*†
DISH Network Corp. — Class A*
IAC/ InterActiveCorp*†
Discovery Holding Co. —
Class A*
Expedia, Inc.*†
Liberty Global, Inc. —
Class A*†
Virgin Media, Inc.†
Sirius Satellite Radio, Inc.*†
Focus Media Holding —
SP ADR*†
Lamar Advertising Co. —
Class A*†
Petsmart, Inc.†
INDUSTRIALS 2.5%
Paccar, Inc.†
Foster Wheeler Ltd.*
Expeditors International of
Washington, Inc.†
Joy Global, Inc.
11,376
$
602,359
7,890
5,410
4,200
6,360
3,956
2,813
480
3,370
1,790
1,840
1,130
830
1,550
1,650
361,362
345,537
302,484
299,938
221,101
176,431
129,312
73,466
65,872
61,585
58,274
55,353
45,554
41,893
2,840,521
17,860
10,450
3,470
12,680
5,910
1,730
1,530
4,370
2,510
338,804
270,759
254,455
199,583
140,363
127,432
124,466
122,797
107,528
6,820
2,130
2,730
3,620
100,663
94,274
79,934
69,794
2,979
3,530
65,419
64,881
2,020
4,480
20,340
63,489
60,973
39,053
1,370
37,976
920
1,585
33,148
31,621
2,427,412
5,130
1,890
2,114
214,588
138,253
115,932
2,620
1,330
112,660
100,854
June 30, 2008
NASDAQ-100 2x STRATEGY FUND
®
MARKET
VALUE
SHARES
Fastenal Co.†
1,790
Cintas Corp.
2,310
1,130
SP ADR*†
1,460
1,590
UAL Corp.†
1,480
Total Industrials
Millicom International Cellular SA† 1,310
NII Holdings, Inc. — Class B*†
2,040
Level 3 Communications, Inc.*†
18,950
Leap Wireless International, Inc. —
Class B*†
860
2,864
1,720
1,160
MATERIALS 0.5%
2,440
Sigma-Aldrich Corp.
1,550
Total Materials
Total Common Stocks
(Cost $13,020,565)
Lending Trust Prime
Portfolio (Note 9)
4,990,476
(Cost $4,990,476)
$
77,256
61,238
58,421
41,858
32,770
7,726
961,556
135,585
96,880
55,902
37,126
325,493
200,881
40,747
33,431
275,059
UNREALIZED
LOSS
CONTRACTS
September 2008 Nasdaq 100
Index Mini Futures Contracts
731
$ (1,261,991)
UNITS
$9,864,929)
5,370
June 2008 Nasdaq 100 Index Swap,
$20,152,628)
10,970
Value $30,017,557)
$
(665,784)
(759,520)
$ (1,425,304)
95,331
83,483
178,814
19,586,529
4,990,476
4,990,476
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08††
$1,796,359
(Cost $1,796,359)
(Cost $19,807,400)
*
**
†
††
1,796,359
1,796,359
$26,373,364
$11,628,515
$38,001,879
Total Return based on Nasdaq 100 Index +/- financing at a variable rate.
THE
RYDEX
| 33
(Unaudited)
June 30, 2008
MARKET
VALUE
SHARES
COMMON STOCKS 61.1%
INDUSTRIALS 10.2%
SPX Corp.
Flowserve Corp.
Manpower, Inc.
KBR, Inc.
AGCO Corp.*†
Joy Global, Inc.†
Quanta Services, Inc.*†
Fastenal Co.†
Brink’s Co.
URS Corp.*
AMETEK, Inc.
Alexander & Baldwin, Inc.†
Corrections Corporation of
America*
Kennametal, Inc.†
Kansas City Southern*†
Shaw Group, Inc.*
Harsco Corp.
Timken Co.†
Copart, Inc.*†
Lincoln Electric Holdings, Inc.†
Donaldson Co., Inc.†
Wabtec Corp.†
Pentair, Inc.†
Trinity Industries, Inc.†
Nordson Corp.†
Carlisle Cos., Inc.
MSC Industrial Direct Co. —
Class A
Roper Industries, Inc.†
Herman Miller, Inc.†
Alliant Techsystems, Inc.*†
MPS Group, Inc.*
Con-way, Inc.†
BE Aerospace, Inc.*
Federal Signal Corp.†
United Rentals, Inc.*
Oshkosh Truck Corp.†
J.B. Hunt Transport
Services, Inc.†
Dun & Bradstreet Corp.
Teleflex, Inc.†
Republic Services, Inc.
Hubbell, Inc. — Class B†
Deluxe Corp.
DRS Technologies, Inc.
Granite Construction, Inc.
YRC Worldwide, Inc.*†
Avis Budget Group, Inc.*†
GATX Corp.†
HNI Corp.†
34 |
THE
RYDEX
880
760
1,760
2,890
1,880
1,260
2,810
2,090
1,350
1,990
1,670
1,720
$
115,921
103,892
102,503
100,890
98,531
95,546
93,489
90,204
88,317
83,520
78,857
78,346
2,730
2,260
1,670
1,130
1,230
1,930
1,390
730
1,160
1,050
1,390
1,380
580
1,390
74,993
73,563
73,463
69,823
66,924
63,574
59,520
57,451
51,782
51,051
48,678
47,872
42,276
40,310
880
580
700
1,440
340
2,960
640
1,040
1,780
1,040
930
38,817
38,210
36,190
35,842
34,571
31,465
30,246
24,222
21,360
20,394
19,242
530
180
250
460
330
700
150
360
670
1,130
200
470
17,638
15,775
13,898
13,662
13,157
12,474
11,808
11,351
9,963
9,458
8,866
8,300
MARKET
VALUE
SHARES
IDEX Corp.
Navigant Consulting, Inc.*
Korn/Ferry International, Inc.*
Corporate Executive
Board Co.
Thomas & Betts Corp.*
Dycom Industries, Inc.*
Crane Co.
Total Industrials
Activision, Inc.*
Western Digital Corp.*†
Harris Corp.
Amphenol Corp. — Class A
Avnet, Inc.*
Intersil Corp. — Class A
CommScope, Inc.*†
Ingram Micro, Inc. — Class A*
Jack Henry & Associates, Inc.†
Alliance Data Systems Corp.*
SRA International, Inc. —
Class A*†
Tech Data Corp.*†
Flir Systems, Inc.*†
Sybase, Inc.*†
Synopsys, Inc.*
Trimble Navigation Ltd.*
Cypress Semiconductor
Corp.*†
Integrated Device
Technology, Inc.*†
Plantronics, Inc.
Parametric Technology Corp.*
Triquint Semiconductor, Inc.*
Arrow Electronics, Inc.*†
Diebold, Inc.
Zebra Technologies Corp. —
Class A*†
Polycom, Inc.*†
Cadence Design
Systems, Inc.*†
Silicon Laboratories, Inc.*
ValueClick, Inc.*†
Semtech Corp.*
Fairchild Semiconductor
International, Inc.*
McAfee, Inc.*
ADC Telecommunications,
Inc.*†
Gartner, Inc. — Class A*†
F5 Networks, Inc.*†
Vishay Intertechnology, Inc.*
International Rectifier Corp.*†
Imation Corp.†
Foundry Networks, Inc.*†
220
410
470
$
8,105
8,020
7,393
160
170
210
50
6,728
6,435
3,049
1,927
2,469,862
4,680
4,520
2,910
2,670
3,490
3,860
1,670
4,370
3,470
1,250
159,448
156,076
146,926
119,830
95,207
93,875
88,126
77,567
75,091
70,687
3,020
1,880
1,500
2,060
2,380
1,560
67,829
63,713
60,855
60,605
56,906
55,692
2,040
50,490
5,050
2,240
2,910
7,420
1,330
1,080
50,197
49,997
48,510
44,965
40,858
38,426
1,160
1,380
37,862
33,617
3,120
872
1,840
1,950
31,512
31,470
27,876
27,436
2,260
770
26,510
26,203
1,770
1,180
850
2,670
1,200
930
1,520
26,143
24,450
24,157
23,683
23,040
21,316
17,966
June 30, 2008
MARKET
VALUE
SHARES
Broadridge Financial
Solutions, Inc.
Digital River, Inc.*
NCR Corp.*
Mentor Graphics Corp.*†
Acxiom Corp.
Atmel Corp.*
CSG Systems
Lam Research Corp.*
National Instruments Corp.†
Global Payments, Inc.†
NeuStar, Inc.*†
Avocent Corp.*
Wind River Systems, Inc.*†
Macrovision Solutions Corp.*†
Advent Software, Inc.*†
Fair Isaac Corp.†
DST Systems, Inc.*†
FINANCIALS 8.9%
New York Community
Bancorp, Inc.†
Health Care REIT, Inc.†
Nationwide Health
Properties, Inc.
W.R. Berkley Corp.
AMB Property Corp.†
Bank of Hawaii Corp.†
Hospitality Properties Trust†
Stancorp Financial Group, Inc.
Mack-Cali Realty Corp.†
Eaton Vance Corp.†
American Financial
Group, Inc.
Macerich Co.†
Highwoods Properties, Inc.†
Old Republic International
Corp.†
Everest Re Group Ltd.
HCC Insurance Holdings, Inc.
Washington Federal, Inc.†
Liberty Property Trust
Weingarten Realty Investors
Camden Property Trust†
Waddell & Reed
Financial, Inc. — Class A†
Fidelity National
Synovus Financial Corp.†
Raymond James Financial, Inc.
Affiliated Managers
Group, Inc.*†
Webster Financial Corp.†
First American Corp.†
750
390
580
920
1,000
3,100
930
260
310
170
340
360
430
170
20
30
10
$
15,787
15,046
14,616
14,536
11,490
10,788
10,249
9,399
8,795
7,922
7,330
6,696
4,683
2,543
722
623
551
2,316,893
6,290
2,470
112,214
109,915
3,050
3,760
1,760
1,720
3,360
1,750
2,270
1,830
96,044
90,842
88,669
82,216
82,186
82,180
77,566
72,761
2,720
1,160
2,250
72,760
72,071
70,695
5,830
820
3,050
3,330
1,790
1,910
1,240
69,027
65,362
64,477
60,273
59,338
57,911
54,882
1,390
48,664
3,780
5,150
1,660
47,628
44,959
43,807
470
2,020
1,400
42,328
37,572
36,960
MARKET
VALUE
SHARES
SVB Financial Group*†
Realty Income Corp.†
Potlatch Corp.
Federal Realty
Investment Trust
Jones Lang LaSalle, Inc.
TCF Financial Corp.†
Cathay General Bancorp†
Duke Realty Corp.†
Wilmington Trust Corp.†
Astoria Financial Corp.
Jefferies Group, Inc.†
AmeriCredit Corp.*†
Cullen/Frost Bankers, Inc.†
First Niagara Financial
Group, Inc.
Regency Centers Corp.
City National Corp.†
FirstMerit Corp.†
Associated Banc-Corp.†
BRE Properties, Inc. —
Class A†
Total Financials
BorgWarner, Inc.
Urban Outfitters, Inc.*†
Scholastic Corp.*†
Hanesbrands, Inc.*†
Toll Brothers, Inc.*
DeVry, Inc.†
Petsmart, Inc.†
Chipotle Mexican Grill, Inc. —
Class A*†
Aeropostale, Inc.*†
Gentex Corp.†
American Eagle
Outfitters, Inc.†
Phillips-Van Heusen Corp.†
NVR, Inc.*†
ITT Educational Services, Inc.*
Dollar Tree, Inc.*†
Strayer Education, Inc.
Furniture Brands
Brinker International, Inc.
CarMax, Inc.*†
Bob Evans Farms, Inc.†
Tupperware Brands Corp.†
Scientific Games Corp. —
Class A*†
Williams-Sonoma, Inc.†
Valassis Communications,
Inc.*†
AnnTaylor Stores Corp.*
THE
RYDEX
700
1,470
730
$
33,677
33,457
32,938
470
450
1,860
1,900
910
690
870
980
1,710
200
32,430
27,085
22,376
20,653
20,430
18,244
17,470
16,484
14,740
9,970
620
80
90
140
110
7,973
4,730
3,786
2,283
2,122
30
1,298
2,165,453
2,510
2,570
2,190
2,230
2,340
3,130
1,020
2,700
111,394
91,286
68,306
63,912
63,508
58,625
54,692
53,865
620
1,590
3,310
51,224
49,815
47,796
3,140
1,150
80
480
1,030
160
42,798
42,113
40,006
39,662
33,671
33,451
2,480
1,740
2,310
1,120
920
33,133
32,886
32,779
32,032
31,482
990
1,470
29,324
29,165
2,300
1,140
28,796
27,314
| 35
June 30, 2008
MARKET
VALUE
SHARES
DreamWorks Animation
SKG, Inc. — Class A*
Guess?, Inc.†
ArvinMeritor, Inc.†
Mohawk Industries, Inc.*†
Ryland Group, Inc.†
Lear Corp.*
The Warnaco Group, Inc.*†
Corinthian Colleges, Inc.*†
Foot Locker, Inc.†
Rent-A-Center, Inc.*†
Netflix, Inc.*†
Life Time Fitness, Inc.*†
American Greetings
Corp. — Class A
Barnes & Noble, Inc.†
Saks, Inc.*
Lamar Advertising Co. —
Class A*†
Collective Brands, Inc.*†
Career Education Corp.*†
Callaway Golf Co.
Dick’s Sporting Goods, Inc.*
International Speedway
Corp. — Class A
Sotheby’s†
99 Cents Only Stores*
Advance Auto Parts, Inc.
Getty Images, Inc.*
Blyth, Inc.
Borders Group, Inc.†
Boyd Gaming Corp.†
Chico’s FAS, Inc.*†
Under Armour, Inc.*†
Entercom Communications
Corp.†
Regis Corp.
Cheesecake Factory, Inc.*†
Coldwater Creek, Inc.*†
Pacific Sunwear of
California, Inc.*†
Ruby Tuesday, Inc.†
Modine Manufacturing Co.
HEALTH CARE 6.9%
Hologic, Inc.*†
Charles River Laboratories
International, Inc.*†
Covance, Inc.*†
Community Health
Systems, Inc.*
Endo Pharmaceuticals
Holdings, Inc.*†
36 |
THE
RYDEX
880
700
1,900
360
1,020
1,550
490
1,770
1,530
920
700
600
$
26,233
26,215
23,712
23,076
22,246
21,979
21,594
20,550
19,049
18,924
18,249
17,730
1,320
630
1,320
16,289
15,649
14,494
400
1,180
920
1,070
710
14,412
13,723
13,441
12,658
12,595
310
450
1,730
290
270
750
1,440
600
1,400
270
12,099
11,867
11,418
11,261
9,161
9,023
8,640
7,536
7,518
6,923
730
130
170
460
5,125
3,426
2,705
2,429
210
230
20
1,791
1,242
247
1,708,264
3,090
4,980
113,712
108,564
1,640
2,010
1,110
104,829
103,656
95,482
2,810
92,674
3,290
79,585
MARKET
VALUE
SHARES
Psychiatric Solutions, Inc.*†
Techne Corp.*
Edwards Lifesciences Corp.*†
Medicis Pharmaceutical
Corp. — Class A†
Pharmaceutical Product
Development, Inc.
Cerner Corp.*†
Gen-Probe, Inc.*
Perrigo Co.†
Kinetic Concepts, Inc.*†
Lincare Holdings, Inc.*
Invitrogen Corp.*†
Cephalon, Inc.*†
Omnicare, Inc.†
Vertex Pharmaceuticals, Inc.*
Health Net, Inc.*
Universal Health Services,
Inc. — Class B†
VCA Antech, Inc.*†
Sepracor, Inc.*†
WellCare Health Plans, Inc.*
Hill-Rom Holdings, Inc.
PDL BioPharma, Inc.†
Affymetrix, Inc.*
LifePoint Hospitals, Inc.*†
Advanced Medical
Optics, Inc.*
Beckman Coulter, Inc.
Health Management
Associates, Inc. — Class A*†
Steris Corp.†
Apria Healthcare
Group, Inc.*†
Par Pharmaceutical
Cos., Inc.*†
Total Health Care
ENERGY 6.6%
Arch Coal, Inc.
Pride International, Inc.*
FMC Technologies, Inc.*†
Plains Exploration &
Production Co.*
Denbury Resources, Inc.*†
Pioneer Natural
Resources Co.†
Forest Oil Corp.*
Cimarex Energy Co.†
Helmerich & Payne, Inc.†
Superior Energy Services*
Newfield Exploration Co.*†
Patterson-UTI Energy, Inc.†
Encore Acquisition Co.*†
Exterran Holdings, Inc.*†
Quicksilver Resources, Inc.*
1,990
890
1,110
$
75,301
68,877
68,864
2,870
59,639
1,380
1,190
1,060
1,510
1,160
1,590
1,030
550
1,340
1,000
1,360
59,202
53,764
50,329
47,973
46,296
45,156
40,438
36,679
35,135
33,470
32,722
510
1,080
1,500
700
830
1,550
1,420
430
32,242
30,002
29,880
25,305
22,393
16,461
14,612
12,169
490
120
9,183
8,104
1,100
160
7,161
4,602
150
2,908
170
2,759
1,670,128
2,000
2,970
1,800
150,060
140,451
138,474
1,830
3,570
133,535
130,305
1,560
1,560
1,550
1,170
1,510
1,110
1,790
850
800
1,350
122,117
116,220
107,989
84,263
83,261
72,428
64,512
63,912
57,192
52,164
June 30, 2008
MARKET
VALUE
SHARES
Tidewater, Inc.†
Frontier Oil Corp.†
Bill Barrett Corp.*
Overseas Shipholding
Group, Inc.
Total Energy
MATERIALS 5.2%
Cleveland-Cliffs, Inc.†
Reliance Steel &
Aluminum Co.†
Lubrizol Corp.
Airgas, Inc.
Terra Industries, Inc.†
Cytec Industries, Inc.
RPM International, Inc.†
Packaging Corporation
of America†
AptarGroup, Inc.†
Cabot Corp.†
Sonoco Products Co.
Commercial Metals Co.†
Worthington Industries, Inc.†
Chemtura Corp.†
FMC Corp.†
Olin Corp.
Martin Marietta
Materials, Inc.†
Valspar Corp.†
Ferro Corp.†
Temple-Inland, Inc.
Albemarle Corp.
Total Materials
UTILITIES 5.0%
Oneok, Inc.
MDU Resources Group, Inc.†
SCANA Corp.
Equitable Resources, Inc.†
Puget Energy, Inc.
DPL, Inc.†
Northeast Utilities†
Great Plains Energy, Inc.†
OGE Energy Corp.
Sierra Pacific Resources
Energy East Corp.
Alliant Energy Corp.
Energen Corp.†
National Fuel Gas Co.†
Vectren Corp.†
WGL Holdings, Inc.†
Wisconsin Energy Corp.
PNM Resources, Inc.†
660
630
230
60
$
42,920
15,063
13,664
4,771
1,593,301
1,260
150,179
1,450
710
2,650
2,040
1,500
1,370
1,140
2,700
111,780
108,488
103,536
94,513
87,585
67,610
62,198
55,620
2,180
960
1,640
1,270
1,010
1,820
5,860
420
1,040
46,892
40,272
39,868
39,307
38,077
37,310
34,222
32,525
27,227
250
1,320
1,050
1,110
240
25,898
24,961
19,698
12,510
9,578
1,269,854
2,570
3,570
3,060
1,410
3,970
3,330
3,230
3,240
2,020
4,750
1,910
1,190
520
620
1,150
670
500
1,390
125,493
124,450
113,220
97,375
95,240
87,845
82,462
81,907
64,054
60,373
47,215
40,769
40,576
36,878
35,892
23,276
22,610
16,624
MARKET
VALUE
SHARES
Hawaiian Electric Industries,
Inc.†
440
AGL Resources, Inc.
170
Total Utilities
BJ’s Wholesale Club, Inc.*†
1,850
Corn Products
International, Inc.
1,450
J.M. Smucker Co.
1,120
Universal Corp.†
760
Church & Dwight Co., Inc.
520
PepsiAmericas, Inc.
1,040
670
Energizer Holdings, Inc.*
80
Telephone & Data
Systems, Inc.
1,860
Total Common Stocks
(Cost $14,016,293)
Lending Trust Prime
Portfolio (Note 9)
5,023,409
(Cost $5,023,409)
$
10,881
5,879
1,213,019
71,595
71,210
45,517
34,367
29,302
20,571
19,309
5,847
297,718
87,922
87,922
14,792,414
5,023,409
5,023,409
FACE
AMOUNT
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
$2,064,983
issued 06/30/08 at 1.75%
due 07/01/08
2,064,983
issued 06/30/08 at 1.74%
due 07/01/08
2,064,983
issued 06/30/08 at 0.25%
due 07/01/08
2,045,089
(Cost $8,240,038)
(Cost $27,279,740)
THE
RYDEX
2,064,983
2,064,983
2,064,983
2,045,089
8,240,038
$28,055,861
$ (3,822,743)
$24,233,118
| 37
June 30, 2008
UNREALIZED
LOSS
CONTRACTS
September 2008 S&P MidCap
400 Index Mini Futures Contracts
148
$
(476,460)
$
(546,463)
UNITS
EQUITY INDEX SWAP AGREEMENT
Credit Suisse Capital, LLC
August 2008 S&P MidCap 400 Index
$9,623,586)
11,751
* Non-Income Producing Security.
** Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
† All or a portion of this security is on loan at June 30, 2008 — See Note 9.
38 |
THE
RYDEX
(Unaudited)
June 30, 2008
FACE
AMOUNT
2.00% due 07/02/08
$ 2,000,000
Freddie Mac*
2.10% due 07/07/08
1,000,000
2.08% due 07/02/08
250,000
Fannie Mae*
2.10% due 07/07/08
250,000
(Cost $3,499,437)
MARKET
VALUE
$ 1,999,889
999,650
EQUITY INDEX SWAP AGREEMENT SOLD SHORT
August 2008 S&P MidCap 400
Index Swap, Terminating 08/18/08**
$1,703,786)
2,080
$ 134,741
249,912
3,499,437
$ 555,638
$ 6,243,516
CONTRACTS
UNREALIZED
GAIN
55
UNREALIZED
GAIN
249,986
issued 06/30/08 at 1.75%
due 07/01/08
548,431
issued 06/30/08 at 1.74%
due 07/01/08
548,431
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
548,431
issued 06/30/08 at 0.25%
due 07/01/08
543,148
(Cost $2,188,441)
(Cost $5,687,878)
September 2008 S&P MidCap 400
UNITS
548,431
548,431
548,431
543,148
2,188,441
$ 5,687,878
$
77,185
U.S. Government.
** Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
THE
RYDEX
| 39
(Unaudited)
June 30, 2008
RUSSELL 2000 2x STRATEGY FUND
®
MARKET
VALUE
SHARES
COMMON STOCKS 47.5%
Equinix, Inc.*†
Itron, Inc.*
Sybase, Inc.*†
Micros Systems, Inc.*†
SAIC, Inc.*†
Ansys, Inc.*†
Polycom, Inc.*†
Skyworks Solutions, Inc.*†
Sohu.com, Inc.*†
Anixter International, Inc.*†
Parametric Technology Corp.*†
CACI International, Inc. — Class A*†
Perot Systems Corp. — Class A*†
Plexus Corp.*†
Intermec, Inc.*†
ON Semiconductor Corp.*†
Informatica Corp.*†
Mantech International Corp. —
Class A*†
Benchmark Electronics, Inc.*†
VistaPrint Ltd.*†
Harmonic, Inc.*†
Plantronics, Inc.†
Amkor Technology, Inc.*†
Blackbaud, Inc.†
Concur Technologies, Inc.*†
EarthLink, Inc.*†
Class A*†
Nuance Communications, Inc.*†
Avocent Corp.*†
Euronet Worldwide, Inc.*†
Scansource, Inc.*†
Net 1 UEPS Technologies, Inc.*
ATMI, Inc.*†
Cabot Microelectronics Corp.*†
Silicon Image, Inc.*†
Cybersource Corp.*†
SPSS, Inc.*†
SYNNEX Corp.*†
ViaSat, Inc.*†
DTS, Inc. — Class A*
Teletech Holdings, Inc.*
Multi-Fineline Electronix, Inc.*†
Triquint Semiconductor, Inc.*†
Standard Microsystems Corp.*†
United Online, Inc.†
TTM Technologies, Inc.*†
Sapient Corp.*†
40 |
THE
RYDEX
180
80
70
200
180
230
100
180
200
430
60
70
240
80
240
130
170
390
230
$
7,303
7,138
6,884
5,884
5,488
4,786
4,712
4,385
4,328
4,244
4,226
4,164
4,001
3,662
3,602
3,598
3,584
3,576
3,459
70
200
120
330
140
300
140
90
340
3,368
3,268
3,211
3,138
3,125
3,123
2,996
2,991
2,941
130
180
150
160
100
110
95
80
360
155
70
100
124
80
125
90
410
210
90
240
180
370
2,920
2,821
2,790
2,704
2,676
2,673
2,652
2,652
2,610
2,593
2,546
2,509
2,506
2,506
2,495
2,490
2,485
2,482
2,443
2,407
2,378
2,375
MARKET
VALUE
SHARES
Manhattan Associates, Inc.*†
SYNTEL INC†
S1 Corp.*
Electronics for Imaging, Inc.*†
Integral Systems, Inc.
Anadigics, Inc.*†
Cognex Corp.
Interwoven, Inc.*
L-1 Identity Solutions, Inc.*†
Micrel, Inc.
Zoran Corp.*
Arris Group, Inc.*
OmniVision Technologies, Inc.*†
JDA Software Group, Inc.*
Marchex, Inc.†
Checkpoint Systems, Inc.*†
Imation Corp.†
Quality Systems, Inc.†
Tyler Technologies, Inc.*
Entegris, Inc.*
CMGI, Inc.*
Methode Electronics, Inc. —
Class A
DG FastChannel, Inc.*
Bankrate, Inc.*†
Monolithic Power Systems, Inc.*
Pericom Semiconductor Corp.*†
OSI SYSTEMS INC*
Cass Information Systems, Inc.
Microsemi Corp.*†
Heartland Payment Systems,
Inc.†
3Com Corp.*†
FEI Co.*†
Take-Two Interactive
Software, Inc.*
Imergent, Inc.†
Cohu, Inc.
Brightpoint, Inc.*†
Kulicke & Soffa Industries, Inc.*†
InfoSpace, Inc.
EMS Technologies, Inc.*
Oplink Communications, Inc.*
RF Micro Devices, Inc.*†
Blue Coat Systems, Inc.*†
Photronics, Inc.*†
Eagle Test Systems, Inc.*
Novatel Wireless, Inc.*
Semitool, Inc.*
Radisys Corp.*
Super Micro Computer, Inc.*
Liquidity Services Inc.*
Radiant Systems, Inc.*
CTS Corp.†
100
70
310
160
60
235
100
190
170
245
190
260
180
120
170
100
90
70
150
310
190
$
2,373
2,360
2,347
2,336
2,322
2,315
2,305
2,282
2,264
2,242
2,223
2,197
2,176
2,172
2,094
2,088
2,063
2,050
2,035
2,030
2,014
190
114
50
90
130
90
60
75
1,985
1,966
1,953
1,946
1,929
1,928
1,922
1,888
80
885
79
1,888
1,876
1,800
70
150
120
240
240
210
80
180
590
120
240
150
150
110
220
180
220
140
150
160
1,790
1,776
1,762
1,752
1,750
1,749
1,747
1,728
1,711
1,693
1,690
1,680
1,669
1,666
1,652
1,631
1,624
1,614
1,609
1,608
June 30, 2008
®
MARKET
VALUE
SHARES
Sycamore Networks, Inc.*
DSP Group, Inc.*
Technitrol, Inc.†
Sigma Designs, Inc.*†
Kenexa Corp. — Class A*†
Atheros Communications, Inc.*†
Omniture, Inc.*†
PMC - Sierra, Inc.*†
SonicWALL, Inc.*†
Electro Scientific Industries, Inc.*
Sonus Networks, Inc.*†
Ultratech, Inc.*
CNET Networks, Inc.*
Epicor Software Corp.*†
iGate Corp.*
MicroStrategy, Inc. — Class A*
Gerber Scientific, Inc.*†
j2 Global
Communications, Inc.*†
Intevac, Inc.*†
Ness Technologies, Inc.*
Art Technology Group, Inc.*
TIBCO Software, Inc.*
Hittite Microwave Corp.*
MAXIMUS, Inc.†
Volterra Semiconductor Corp.*
Adaptec, Inc.*
Mattson Technology, Inc.*
Comtech Telecommunications
Corp.*†
Netgear, Inc.*†
ADTRAN, Inc.†
Extreme Networks, Inc.*
Cirrus Logic, Inc.*
Loral Space &
Communications, Inc.*
Ultra Clean Holdings*
Rimage Corp.*
Opnext, Inc.*
Vignette Corp.*
SI International, Inc.*
Exar Corp.*
Digital River, Inc.*†
Faro Technologies, Inc.*
Synaptics, Inc.*†
infoGROUP, Inc.
Network Equipment
Technologies, Inc.*†
DealerTrack Holdings, Inc.*†
Smith Micro Software, Inc.*†
490
224
90
110
80
50
80
190
90
220
100
410
90
120
190
160
20
110
$
1,578
1,568
1,529
1,528
1,507
1,500
1,486
1,453
1,422
1,419
1,417
1,402
1,397
1,379
1,313
1,301
1,295
1,252
50
100
110
100
340
140
30
30
60
320
210
1,150
1,128
1,113
1,089
1,088
1,071
1,069
1,045
1,036
1,024
1,000
20
70
40
325
160
980
970
954
923
890
50
110
70
160
70
40
110
40
20
30
20
50
170
881
876
867
861
840
838
829
829
772
755
755
748
746
210
20
50
120
746
722
706
684
MARKET
VALUE
SHARES
Harris Stratex Networks, Inc. —
Class A*
Intervoice, Inc.*
Trident Microsystems, Inc.*
THQ, Inc.*†
LivePerson, Inc.*
Vasco Data Security
International*†
TheStreet.com, Inc.†
Progress Software Corp.*†
Wright Express Corp.*
KEMET Corp.*†
Perficient, Inc.*†
Emulex Corp.*
MKS Instruments, Inc.*†
Taleo Corp.*
Blackboard, Inc.*†
MercadoLibre, Inc.*†
Global Cash Access
Holdings, Inc.*
Immersion Corp.*
LoopNet, Inc.*†
Internap Network
Services Corp.*†
Tessera Technologies, Inc.*
Littelfuse, Inc.*
Rofin-Sinar Technologies, Inc.*†
Quest Software, Inc.*†
Ariba, Inc.*
Semtech Corp.*†
Synchronoss Technologies, Inc.*†
CPI International, Inc.*
InterDigital, Inc.*
Interactive Intelligence, Inc.*
CSG Systems International, Inc.*
Cavium Networks, Inc.*†
Limelight Networks Inc.*
PC Connection, Inc.*
Formfactor, Inc.*†
SiRF Technology Holdings, Inc.*
Lawson Software, Inc.*†
ExlService Holdings, Inc.*†
TiVo, Inc.*
AsiaInfo Holdings, Inc.*
Advanced Analogic
Technologies, Inc.*
Gevity HR, Inc.
FINANCIALS 7.7%
Nationwide Health
Properties, Inc.
Waddell & Reed
THE
RYDEX
70
110
170
30
190
$
664
627
621
608
534
50
80
20
20
150
50
40
20
20
10
10
527
521
511
496
486
483
466
438
392
382
345
50
50
30
343
341
339
70
20
10
10
20
20
20
30
20
10
20
20
10
50
20
10
40
20
10
20
10
328
327
316
302
296
294
281
271
246
243
233
220
210
191
186
184
173
145
140
123
118
20
10
83
54
344,987
200
230
6,298
5,235
140
4,901
| 41
June 30, 2008
®
MARKET
VALUE
SHARES
Knight Capital
Group, Inc. — Class A*
Senior Housing
Properties Trust†
National Retail Properties,
Inc.†
Platinum Underwriters
Holdings Ltd.
Alexandria Real Estate
Equities, Inc.†
NewAlliance Bancshares, Inc.†
IPC Holdings Ltd.†
Montpelier Re Holdings Ltd.†
Mid-America Apartment
Communities, Inc.
Aspen Insurance Holdings Ltd.†
Entertainment Properties Trust†
Max Capital Group Ltd.†
Healthcare Realty Trust, Inc.†
First Industrial Realty Trust, Inc.†
Post Properties, Inc.†
International Bancshares Corp.†
Extra Space Storage, Inc.†
Susquehanna Bancshares, Inc.†
Eastgroup Properties, Inc.†
DiamondRock Hospitality Co.†
Sunstone Hotel Investors, Inc.
Cash America International, Inc.†
Delphi Financial Group, Inc. —
Class A
LaSalle Hotel Properties†
Lexington Realty Trust†
Greenhill & Co., Inc.†
PS Business Parks, Inc.†
Stifel Financial Corp.*
Safety Insurance Group, Inc.†
Digital Realty Trust, Inc.†
Ezcorp, Inc. — Class A*
National Financial Partners Corp.†
Cedar Shopping Centers, Inc.†
TrustCo Bank Corp.
IBERIABANK Corp.†
Banco Latinoamericano de
Exportaciones SA
NorthStar Realty Finance Corp.†
Navigators Group, Inc.*†
Park National Corp.†
United Fire & Casualty Co.†
First Financial Corp.†
Alternative Asset Management
Acquisition Corp.*†
FelCor Lodging Trust, Inc.†
Acadia Realty Trust†
Strategic Hotels & Resorts, Inc.†
42 |
THE
RYDEX
250
$
4,495
230
4,492
190
3,971
120
3,913
40
310
140
250
3,894
3,869
3,717
3,687
70
150
70
160
140
120
110
150
200
220
70
270
170
90
3,573
3,550
3,461
3,413
3,328
3,296
3,272
3,205
3,072
3,012
3,003
2,940
2,822
2,790
120
110
200
50
50
75
70
60
190
120
200
300
50
2,777
2,764
2,726
2,693
2,580
2,579
2,495
2,455
2,422
2,378
2,344
2,226
2,223
135
260
40
40
80
70
2,186
2,163
2,162
2,156
2,154
2,143
230
200
90
220
2,139
2,100
2,083
2,061
MARKET
VALUE
SHARES
Ramco-Gershenson
Properties Trust
SeaBright Insurance
Holdings, Inc.*
World Acceptance Corp.*†
Urstadt Biddle Properties, Inc.
Resource America, Inc. —
Class A
NTR Acquisition Co.*†
Glacier Bancorp, Inc.†
Ashford Hospitality Trust, Inc.
Tower Group, Inc.
Saul Centers, Inc.†
Hercules Technology
Growth Capital, Inc.
United America Indemnity
Ltd. – Class A*
Presidential Life Corp.
Prospect Capital Corp.†
Harleysville National Corp.
Compass Diversified Trust
Donegal Group, Inc. — Class A
Sterling Bancshares, Inc.†
Universal Health Realty
Income Trust
Tanger Factory Outlet
Centers, Inc.†
Pacific Capital Bancorp†
Odyssey Re Holdings Corp.
CNA Surety Corp.*
Mission West Properties
Kite Realty Group Trust
Apollo Investment Corp.†
First Community
Bancshares, Inc.
Sovran Self Storage, Inc.†
Hersha Hospitality Trust
Associated Estates Realty Corp.
Chemical Financial Corp.†
Cathay General Bancorp
PHH Corp.*
National Penn Bancshares, Inc.†
Univest Corp. of Pennsylvania
Getty Realty Corp.†
Umpqua Holding Corp.†
Oriental Financial Group
optionsXpress Holdings, Inc.†
Agree Realty Corp.
GFI Group, Inc.†
Advance America Cash
Advance Centers, Inc.†
Renasant Corp.†
BioMed Realty Trust, Inc.
First Merchants Corp.
100
$
2,054
140
60
135
2,027
2,020
1,979
210
200
120
415
90
40
1,957
1,936
1,919
1,917
1,907
1,880
210
1,875
140
120
140
165
160
115
200
1,872
1,850
1,845
1,841
1,829
1,825
1,818
60
1,800
50
130
50
140
160
140
120
1,796
1,791
1,775
1,770
1,754
1,750
1,720
60
40
220
155
80
150
105
120
80
110
130
50
110
70
70
170
1,692
1,662
1,661
1,660
1,632
1,630
1,612
1,594
1,589
1,585
1,577
1,571
1,569
1,564
1,543
1,532
290
100
60
80
1,473
1,473
1,472
1,452
June 30, 2008
®
MARKET
VALUE
SHARES
ProAssurance Corp.*†
Home Properties, Inc.†
National Health Investors, Inc.†
Berkshire Hills Bancorp, Inc.†
DCT Industrial Trust, Inc.
Green Bankshares, Inc.†
Santander BanCorp
United Bankshares, Inc.†
Dollar Financial Corp.*
Potlatch Corp.†
Argo Group International
Holdings Ltd.*†
Meadowbrook Insurance
Group, Inc.
FirstMerit Corp.†
Boston Private Financial
Holdings, Inc.†
West Coast Bancorp†
Frontier Financial Corp.†
Assured Guaranty Ltd.†
Columbia Banking Systems, Inc.
Phoenix Cos., Inc.
Glimcher Realty Trust
United Community Banks, Inc.†
Prosperity Bancshares, Inc.†
Independent Bank Corp.†
Westamerica Bancorporation†
Education Realty Trust, Inc.
Winthrop Realty Trust
Provident Financial Services,
Inc.†
Corporate Office Properties
Trust SBI†
WesBanco, Inc.
UMB Financial Corp.†
First Bancorp
PennantPark Investment Corp.
RAIT Financial Trust†
Grubb & Ellis Co.†
Evercore Partners, Inc. —
Class A
Anthracite Capital, Inc.†
Washington Real Estate
Investment Trust
Group, Inc.
Kohlberg Capital Corp.†
Advanta Corp.
Zenith National
Insurance Corp.†
American Campus
Communities, Inc.†
Sierra Bancorp†
First Bancorp Puerto Rico†
30
30
50
60
170
100
130
60
90
30
$
1,443
1,442
1,426
1,419
1,408
1,402
1,379
1,377
1,360
1,354
40
1,342
250
80
1,325
1,305
230
150
150
70
65
155
105
130
40
265
20
90
290
1,304
1,301
1,278
1,259
1,256
1,180
1,174
1,109
1,069
1,060
1,052
1,049
1,044
74
1,037
30
60
20
80
139
130
250
20
1,030
1,029
1,025
1,011
1,002
965
963
962
100
130
950
915
30
902
70
90
140
900
900
881
25
879
31
50
130
863
825
824
MARKET
VALUE
SHARES
1st Source Corp.
Texas Capital Bancshares, Inc.*†
CompuCredit Corp.*†
Central Pacific Financial Corp.†
Federal Agricultural
Mortgage Corp.
CapLease, Inc.†
South Financial Group, Inc.†
Hallmark Financial Services, Inc.*
Parkway Properties, Inc.†
Royal Bancshares of
Pennsylvania, Inc. — Class A†
First South Bancorp, Inc.†
Interactive Brokers Group, Inc. —
Class A*
Sanders Morris Harris Group Inc.†
Maguire Properties, Inc.†
MFA Mortgage Investments, Inc.
Security Bank Corp.†
Hanmi Financial Corp.
Integra Bank Corp.
Thomas Weisel Partners
Group, Inc.*
Capitol Bancorp, Ltd.†
eHealth, Inc.*
UCBH Holdings, Inc.†
Omega Healthcare
Investors, Inc.†
U-Store-It Trust†
FNB Corp.†
BankAtlantic Bancorp, Inc. —
Class A†
Hilb Rogal & Hobbs Co.
Bancfirst Corp.
Old National Bancorp†
Sterling Savings Bank†
Imperial Capital Bancorp, Inc.
Hancock Holding Co.†
Midwest Banc Holdings, Inc.
First State Bancorporation†
Franklin Street Properties
Corp., Inc.
Selective Insurance Group, Inc.†
Portfolio Recovery
Associates, Inc.*†
First Midwest Bancorp, Inc.†
Asta Funding, Inc.†
Amcore Financial, Inc.†
Harleysville Group, Inc.
Irwin Financial Corp.†
Avatar Holdings Inc.*†
Ares Capital Corp.
AmericanWest Bancorp
United Security Bancshares†
FCStone Group, Inc.*†
THE
RYDEX
50
50
130
70
$
805
800
780
746
30
95
180
70
20
743
712
706
677
675
70
50
659
644
20
90
50
90
100
110
70
643
610
609
587
586
573
548
100
60
30
230
547
538
530
518
30
40
40
500
478
471
250
10
10
30
100
70
10
80
70
440
435
428
428
414
401
393
390
385
30
20
379
375
10
20
40
60
10
120
10
30
130
20
10
375
373
362
340
338
323
303
302
295
291
279
| 43
June 30, 2008
®
MARKET
VALUE
SHARES
City Bank†
LTC Properties, Inc.†
Cousins Properties, Inc.
Trustmark Corp.†
First Potomac Realty Trust
MarketAxess Holdings, Inc.*
Community Bancorp*†
Primus Guaranty Ltd.*
Triad Guaranty, Inc.*†
Citizens Banking Corp.†
Franklin Bank Corp.*†
Great Southern Bancorp, Inc.†
QC Holdings, Inc.
Newcastle Investment Corp.†
Anworth Mortgage Asset Corp.†
Provident Bankshares Corp.†
Capital Corp of the West
Centerline Holding Co.†
PFF Bancorp, Inc.†
Bankunited Financial Corp. —
Class A†
FX Real Estate and
Entertainment, Inc.*
Total Financials
INDUSTRIALS 7.0%
II-VI, Inc.*
Bucyrus International, Inc. —
Class A†
Walter Industries, Inc.
Energy Conversion Devices, Inc.*
Wabtec Corp.†
Watson Wyatt & Co. Holdings†
Acuity Brands, Inc.†
FTI Consulting, Inc.*†
EMCOR Group, Inc.*†
Curtiss-Wright Corp.†
Valmont Industries, Inc.†
Teledyne Technologies, Inc.*†
Orbital Sciences Corp.*†
Regal-Beloit Corp.†
Belden, Inc.†
Eagle Bulk Shipping Inc.†
Esterline Technologies Corp.*†
Genco Shipping & Trading Ltd.†
Mueller Industries, Inc.†
MPS Group, Inc.*†
Applied Industrial
Technologies, Inc.†
Superior Essex, Inc.*
ABM Industries, Inc.†
Watsco, Inc.†
GrafTech International Ltd.*†
Actuant Corp. — Class A†
Pacer International, Inc.†
44 |
THE
RYDEX
30
10
10
10
10
20
30
50
120
40
150
10
10
10
10
10
10
20
30
$
258
256
231
177
152
151
150
146
125
113
92
81
78
70
65
64
38
33
32
20
19
10
19
304,332
313
10,930
140
70
90
120
100
100
70
160
100
40
80
165
90
110
120
70
50
130
100
300
10,223
7,614
6,628
5,834
5,289
4,808
4,792
4,565
4,474
4,172
3,903
3,887
3,802
3,727
3,548
3,448
3,260
3,236
3,220
3,189
130
70
140
74
110
90
130
3,142
3,124
3,115
3,093
2,951
2,821
2,796
MARKET
VALUE
SHARES
M&F Worldwide Corp.*†
Arkansas Best Corp.†
Atlas Air Worldwide
Holdings Co., Inc.*
Comfort Systerms USA, Inc.†
Ameron International Corp.†
HUB Group, Inc. — Class A*†
School Specialty, Inc.*†
Triumph Group, Inc.†
Mastec, Inc.*
Tecumseh Products Co. —
Class A*
Astec Industries, Inc.*†
Gibraltar Industries, Inc.
Argon ST, Inc.*
CoStar Group, Inc.*†
Waste Connections, Inc.*
Middleby Corp.*†
Nordson Corp.†
Cenveo, Inc.*†
Woodward Governor Co.
G & K Services, Inc. — Class A†
Interface, Inc. — Class A
Encore Wire Corp.†
Universal Forest Products, Inc.†
Viad Corp.
Beacon Roofing Supply, Inc.*†
Robbins & Myers, Inc.
Gorman-Rupp Co.†
Perini Corp.*†
Chart Industries, Inc.*
Hexcel Corp.*
Columbus McKinnon Corp. —
Class A*
Horizon Lines, Inc. — Class A†
ESCO Technologies, Inc.*†
Standex International Corp.
Altra Holdings, Inc.*
Wabash National Corp.†
On Assignment, Inc.*
American Superconductor
Corp.*†
Bowne & Co., Inc.†
CDI Corp.
Clarcor, Inc.
Michael Baker Corp.*†
Waste Services Inc.*
Spherion Corp.*
Lindsay Manufacturing Co.†
SYKES Enterprises, Inc.*†
Administaff, Inc.†
Dycom Industries, Inc.*†
Volt Information Sciences, Inc.*
70
70
$
2,752
2,565
50
180
20
70
80
50
220
2,473
2,419
2,400
2,389
2,378
2,355
2,345
70
190
70
140
90
50
69
50
30
220
60
70
170
100
70
80
190
40
50
60
40
100
2,295
2,280
2,250
2,236
2,232
2,222
2,203
2,195
2,187
2,149
2,140
2,132
2,130
2,119
2,097
2,063
2,016
1,995
1,992
1,983
1,946
1,930
80
190
40
90
110
240
225
1,926
1,891
1,877
1,867
1,849
1,814
1,805
50
140
70
50
80
245
370
20
90
60
114
130
1,793
1,785
1,781
1,755
1,750
1,725
1,709
1,699
1,697
1,673
1,655
1,548
June 30, 2008
®
MARKET
VALUE
SHARES
American Railcar
Industries, Inc.†
American Reprographics Co.*†
Celadon Group, Inc.*
Brady Corp. — Class A†
Kaman Corp. — Class A
AAR Corp.*†
Schawk, Inc.
TBS International Ltd. —
Class A*†
Houston Wire & Cable Co.†
Moog, Inc. — Class A*†
NCI Building Systems, Inc.*†
Titan International, Inc.
Baldor Electric Co.†
Kaydon Corp.†
Greenbrier Cos., Inc.†
Polypore International, Inc.*†
Republic Airways Holdings,
Inc.*†
Insteel Industries, Inc.
Tetra Tech, Inc.*†
Cubic Corp.
Deluxe Corp.
JetBlue Airways Corp.*†
Diamond Management &
Technology Consultants, Inc.
Barrett Business Services, Inc.
Apogee Enterprises, Inc.†
Flow International Corp.*†
Alaska Air Group, Inc.*†
LSI Industries, Inc.
Coleman Cable Inc.*
Griffon Corp.*†
Barnes Group, Inc.†
TAL International Group, Inc.
Pike Electric Corp.*
LB Foster Co. — Class A*
Dynamic Materials Corp.
American Commercial
Lines, Inc.*†
Raven Industries, Inc.†
Aecom Technology Corp.*
Sun Hydraulics Corp.†
Briggs & Stratton Corp.†
First Advantage Corp. —
Class A*
Granite Construction, Inc.
American Ecology Corp.
Consolidated Graphics, Inc.*†
IKON Office Solutions, Inc.
Geo Group, Inc.*†
Hudson Highland Group, Inc.*
Preformed Line Products Co.
90
90
140
40
60
100
100
$
1,510
1,499
1,399
1,381
1,366
1,353
1,199
30
60
30
30
30
30
20
50
40
1,199
1,194
1,117
1,102
1,069
1,049
1,028
1,015
1,013
110
50
40
40
50
230
953
916
905
891
891
858
160
70
49
40
100
50
90
70
80
30
30
40
20
20
834
828
792
782
780
767
731
722
701
693
682
664
664
659
60
20
20
20
50
656
656
651
645
634
40
20
20
10
40
20
40
10
634
631
591
493
451
450
419
403
MARKET
VALUE
SHARES
Mine Safety Appliances Co.†
Otter Tail Power Co.†
H&E Equipment Services, Inc.*†
Forward Air Corp.
Team, Inc.*
Ceradyne, Inc.*†
Genesee & Wyoming, Inc. —
Class A*
Kforce, Inc.*
Stanley, Inc.*
Heico Corp.†
SkyWest, Inc.†
Albany International Corp. —
Class A
Knight Transportation, Inc.†
TrueBlue, Inc.*
Force Protection, Inc.*†
Pinnacle Airlines Corp.*
Mobile Mini, Inc.*†
Orion Energy Systems Inc.*†
Taser International, Inc.*†
Allegiant Travel Co.*
ICT Group, Inc.*
AirTran Holdings, Inc.*†
Mueller Water Products, Inc. —
Class A†
Healthcare Services Group†
Knoll, Inc.
Evergreen Solar, Inc.*†
Total Industrials
HEALTH CARE 6.7%
Hologic, Inc.*†
Illumina, Inc.*†
BioMarin Pharmaceuticals,
Inc.*†
OSI Pharmaceuticals, Inc.*†
Perrigo Co.†
Inverness Medical Innovations,
Inc.*†
Myriad Genetics, Inc.*†
United Therapeutics Corp.*†
Owens & Minor, Inc.†
Cepheid, Inc.*†
Bio-Rad Laboratories, Inc. —
Class A*
Parexel International Corp.*†
Isis Pharmaceuticals, Inc.*†
NuVasive, Inc.*†
Amedisys, Inc.*†
Martek Biosciences Corp.*†
Medicines Co.*†
Medicis Pharmaceutical Corp. —
Class A†
ArthroCare Corp.*†
THE
RYDEX
10
10
30
10
10
10
$
400
388
361
346
343
343
10
40
10
10
25
340
340
335
325
316
10
15
20
70
70
10
20
40
10
20
80
290
275
264
232
221
200
200
200
186
164
163
20
10
10
10
161
152
122
97
277,342
480
70
10,464
6,098
205
140
170
5,941
5,785
5,401
160
110
130
50
100
150
5,307
5,007
4,919
4,887
4,569
4,218
50
150
274
80
70
100
170
4,044
3,946
3,735
3,573
3,529
3,371
3,369
160
80
3,325
3,265
| 45
June 30, 2008
®
MARKET
VALUE
SHARES
Meridian Bioscience, Inc.†
AMERIGROUP Corp.*†
Analogic Corp.
Cubist Pharmaceuticals, Inc.*†
West Pharmaceutical
Services, Inc.†
HealthExtras, Inc.*
The Trizetto Group, Inc.*
Luminex Corp.*†
Alnylam Pharmaceuticals, Inc.*†
Alexion Pharmaceuticals, Inc.*†
Steris Corp.†
Celera Corp.*
Vital Signs, Inc.
Healthspring, Inc.*†
Auxilium Pharmaceuticals, Inc.*†
AmSurg Corp.*†
eResearch Technology, Inc.*
Alkermes, Inc.*†
Eclipsys Corp.*†
Phase Forward, Inc.*†
Zoll Medical Corp.*†
Conmed Corp.*†
Sciele Pharma, Inc.*†
inVentiv Health, Inc.*†
Sun Healthcare Group, Inc.*†
Invacare Corp.†
Sirona Dental Systems, Inc.*†
Apria Healthcare Group, Inc.*
Natus Medical, Inc.*†
Bruker BioSciences Corp.*
Merit Medical Systems, Inc.*
Chemed Corp.†
Kendle International, Inc.*†
PharmaNet Development
Group, Inc.*†
Viropharma, Inc.*†
CryoLife, Inc.*
Corvel Corp.*
AMN Healthcare Services, Inc.*
Albany Molecular
Research, Inc.*
Medarex, Inc.*†
SonoSite, Inc.*†
Angiodynamics, Inc.*
Genoptix Inc.*†
Cypress Bioscience, Inc.*†
National Healthcare Corp.†
Sunrise Senior Living, Inc.*
SurModics, Inc.*†
Onyx Pharmaceuticals, Inc.*†
Res-Care, Inc.*
Bentley Pharmaceuticals, Inc.*
Healthways, Inc.*†
Providence Service Corp.*†
46 |
THE
RYDEX
120
155
50
170
$
3,230
3,224
3,153
3,036
70
100
140
144
110
40
100
250
50
168
84
115
160
225
150
150
80
100
130
90
180
115
90
120
110
175
150
60
60
3,030
3,014
2,993
2,959
2,940
2,900
2,876
2,840
2,839
2,836
2,824
2,800
2,790
2,781
2,754
2,695
2,694
2,655
2,515
2,501
2,410
2,351
2,333
2,327
2,303
2,249
2,205
2,197
2,180
135
190
180
60
120
2,129
2,101
2,059
2,032
2,030
150
300
70
140
60
256
40
80
40
50
100
110
60
80
1,990
1,983
1,961
1,907
1,893
1,841
1,833
1,798
1,794
1,780
1,778
1,776
1,776
1,689
MARKET
VALUE
SHARES
Align Technology, Inc.*†
RTI Biologics, Inc.*†
Affymetrix, Inc.*
Computer Programs &
Systems, Inc.
Immucor, Inc.*†
Par Pharmaceutical Cos., Inc.*†
Molina Healthcare, Inc.*†
Mentor Corp.†
Cynosure, Inc.*
Omnicell, Inc.*
Cantel Medical Corp.*
Emergent Biosolutions, Inc.*
American Medical Systems
Holdings, Inc.*†
Medical Action Industries, Inc.*
Cross Country Healthcare, Inc.*
Magellan Health Services, Inc.*†
Haemonetics Corp.*†
Nighthawk Radiology
Holdings, Inc.*†
Varian, Inc.*
Allscripts Healthcare
Solutions, Inc.*†
Datascope Corp.†
Valeant Pharmaceuticals
International*†
Healthsouth Corp.*†
HMS Holdings Corp.*
Symmetry Medical, Inc.*†
Nektar Therapeutics*
Pozen, Inc.*†
Obagi Medical Products, Inc.*
Regeneron
Pharmaceuticals, Inc.*†
Dionex Corp.*†
Geron Corp.*†
athenahealth, Inc.*†
American Dental Partners, Inc.*
Conceptus, Inc.*†
Ariad Pharmaceuticals, Inc.*
MannKind Corp.*†
Medcath Corp.*
Savient Pharmaceuticals, Inc.*†
Air Methods Corp.*
Abaxis, Inc.*
Emergency Medical Services
Corp. — Class A*†
Alpharma, Inc. — Class A*†
OraSure Technologies, Inc.*†
Universal American
Financial Corp.*
PSS World Medical, Inc.*
Orthofix International NV*†
Wright Medical Group, Inc.*†
160
190
160
$
1,678
1,663
1,646
90
60
90
60
50
70
100
130
129
1,560
1,553
1,461
1,460
1,391
1,387
1,318
1,316
1,281
80
114
80
30
20
1,196
1,182
1,153
1,111
1,109
150
20
1,062
1,021
80
20
993
940
54
54
40
50
240
70
89
924
898
859
811
804
762
761
50
10
190
20
50
30
230
180
30
20
20
20
722
664
656
615
594
555
552
540
539
506
500
483
20
20
120
453
451
449
40
20
10
10
409
326
290
284
June 30, 2008
®
MARKET
VALUE
SHARES
Cutera, Inc.*
Dendreon Corp.*†
Total Health Care
Priceline.com, Inc.*†
DeVry, Inc.†
Chipotle Mexican Grill, Inc.*†
Bally Technologies, Inc.*†
Deckers Outdoor Corp.*
Exide Technologies*†
LKQ Corp.*†
Polaris Industries, Inc.†
Jack in the Box, Inc.*
Fossil, Inc.*†
Wolverine World Wide, Inc.†
WMS Industries, Inc.*†
J. Crew Group, Inc.*†
Zale Corp.*†
Unifirst Corp.
Callaway Golf Co.
Quiksilver, Inc.*†
La-Z-Boy, Inc.†
Lear Corp.*
Furniture Brands
True Religion Apparel, Inc.*†
Charlotte Russe Holding, Inc.*
Sauer, Inc.
Iconix Brand Group, Inc.*†
Buckle, Inc.
DineEquity, Inc.†
Dress Barn, Inc.*†
Valassis Communications, Inc.*†
Netflix, Inc.*†
World Wrestling
Entertainment, Inc.
P.F. Chang’s China Bistro, Inc.*†
Cox Radio Inc. — Class A*
Skechers U.S.A., Inc. —
Class A*†
Texas Roadhouse, Inc.*†
Haverty Furniture Cos., Inc.†
Stoneridge, Inc.*
Marcus Corp.
Superior Industries
20
10
$
181
45
263,451
70
135
160
60
130
20
30
120
230
210
90
160
120
130
110
95
100
100
150
60
210
220
260
330
170
8,082
7,239
5,013
4,522
4,394
4,181
4,176
4,106
3,855
3,795
3,634
3,586
3,488
3,467
3,275
3,136
2,866
2,860
2,833
2,680
2,621
2,603
2,553
2,524
2,411
180
90
134
75
190
50
110
60
50
160
170
80
70
2,405
2,398
2,380
2,336
2,295
2,286
2,263
2,242
2,203
2,141
2,128
2,086
2,068
130
90
170
2,011
2,011
2,006
100
220
190
110
125
1,976
1,973
1,908
1,877
1,869
110
1,857
MARKET
VALUE
SHARES
FTD Group, Inc.
Town Sports International
Holdings, Inc.*
Tenneco, Inc.*†
Ethan Allen Interiors, Inc.†
Perry Ellis International, Inc.*
Live Nation, Inc.*†
Spartan Motors, Inc.
Gaylord Entertainment Co.*†
Sonic Automotive, Inc.†
Red Robin Gourmet
Burgers, Inc.*†
Jo-Ann Stores, Inc.*†
Sotheby’s†
Pinnacle Entertainment, Inc.*†
Entravision Communications
Corp. — Class A*
Champion Enterprises, Inc.*†
California Pizza Kitchen, Inc.*†
1-800-FLOWERS.com, Inc.*
thinkorswim Group, Inc.*†
Skyline Corp.
Monro Muffler Brake, Inc.
Hooker Furniture Corp.
Matthews International Corp. —
Class A
G-III Apparel Group Ltd.*
Stein Mart, Inc.†
Blyth, Inc.†
Beazer Homes USA, Inc.†
Men’s Wearhouse, Inc.†
Sinclair Broadcast Group, Inc. —
Class A†
Marvel Entertainment, Inc.*†
American Greetings Corp. —
Class A
Christopher & Banks Corp.†
Volcom, Inc.*†
Capella Education Co.*†
Collective Brands, Inc.*
Lululemon Athletica, Inc.*†
American Axle & Manufacturing
Holdings, Inc.†
M/I Homes, Inc.†
DSW, Inc.*†
Systemax, Inc.†
Steinway Musical
Instruments, Inc.*
Cherokee, Inc.
Arbitron, Inc.
Genesco, Inc.*†
Regis Corp.
Vail Resorts, Inc.*†
THE
RYDEX
135
$
1,800
190
130
70
80
160
225
70
130
1,775
1,759
1,722
1,698
1,693
1,681
1,677
1,676
60
140
70
60
150
1,664
1,625
1,612
1,582
1,573
380
260
135
230
220
205
60
90
80
1,528
1,521
1,511
1,483
1,452
1,445
1,410
1,394
1,386
30
110
294
110
234
80
1,358
1,357
1,326
1,323
1,303
1,303
170
40
1,292
1,286
100
180
50
20
100
40
1,234
1,224
1,196
1,193
1,163
1,162
140
70
90
60
1,119
1,101
1,060
1,059
40
50
20
30
34
20
1,056
1,007
950
926
896
857
| 47
June 30, 2008
®
MARKET
VALUE
SHARES
Martha Stewart
Omnimedia, Inc.*†
Stage Stores, Inc.
Winnebago Industries, Inc.†
Gymboree Corp.*
Cooper Tire & Rubber Co.†
Overstock.com, Inc.*†
Hayes Lemmerz
Interactive Data Corp.†
Buffalo Wild Wings, Inc.*†
Charming Shoppes, Inc.*†
O’Charleys, Inc.†
Triarc Cos., Inc. — Class B†
Conn’s, Inc.*†
Sealy Corp.†
Noble International Ltd.
Group 1 Automotive, Inc.†
McCormick & Schmick’s
Seafood Restaurants, Inc.*†
MarineMax, Inc.*†
CSK Auto Corp.*
Audiovox Corp. — Class A*
Premier Exhibitions, Inc.*
Fred’s, Inc.†
Sonic Corp.*†
Pacific Sunwear of
CPI Corp.
Zumiez, Inc.*†
Knology, Inc.*
Tween Brands, Inc.*
Coinstar, Inc.*
Gaiam, Inc.*
Multimedia Games, Inc.*†
Core-Mark Holding Co., Inc.*
ATC Technology Corp.*†
Citi Trends, Inc.*†
Aaron Rents, Inc.†
K12 Inc.*†
Corp.†
Bon-Ton Stores, Inc.†
Krispy Kreme Doughnuts, Inc.*†
BJ’s Restaurants, Inc.*†
MTR Gaming Group, Inc.*
CKX, Inc.*
Finish Line, Inc. — Class A*
Build-A-Bear Workshop, Inc.*
Retail Ventures, Inc.*
Ambassadors International*
48 |
THE
RYDEX
115
70
80
20
100
30
$
851
817
815
801
784
778
270
30
30
160
120
70
110
40
110
140
30
767
754
745
734
720
704
696
643
631
626
596
60
80
50
50
100
40
30
578
574
524
491
454
450
444
50
70
20
20
30
20
10
20
60
10
10
10
10
10
10
426
378
375
332
330
329
327
270
265
262
256
233
227
223
214
30
40
40
20
40
20
20
20
30
30
211
209
200
195
191
175
174
145
138
131
MARKET
VALUE
SHARES
Salem Communications Corp. —
Class A
NexCen Brands, Inc.*
Big 5 Sporting Goods Corp.
Standard-Pacific Corp.†
Benihana, Inc.*
The Wet Seal, Inc. — Class A*†
ENERGY 5.6%
Alpha Natural Resources, Inc.*
PetroHawk Energy Corp.*
Whiting Petroleum Corp.*
Comstock Resources, Inc.*
Penn Virginia Corp.†
Atwood Oceanics, Inc.*
Mariner Energy, Inc.*†
Oil States International, Inc.*†
EXCO Resources, Inc.*†
Swift Energy Co.*†
IHS, Inc.*†
Carrizo Oil & Gas, Inc.*
Atlas America, Inc.
Rosetta Resources, Inc.*
Hornbeck Offshore
Services, Inc.*†
Grey Wolf, Inc.*
Crosstex Energy, Inc.†
Basic Energy Services, Inc.*†
Willbros Group, Inc.*†
Hercules Offshore*†
McMoRan Exploration Co.*†
Clayton Williams Energy, Inc.*†
Pioneer Drilling Co.*
Complete Production
Services, Inc.*†
Warren Resources, Inc.*
W-H Energy Services, Inc.*†
Contango Oil & Gas Co.*
Nordic American Tanker
Shipping†
Arena Resources, Inc.*
Stone Energy Corp.*†
Gulfport Energy Corp.*†
Trico Marine Services, Inc.*†
Matrix Service Co.*†
World Fuel Services Corp.†
PHI, Inc.*
Berry Petroleum Co. —
Class A†
Harvest Natural
Resources, Inc.*†
Bois d’Arc Energy, Inc.*
ATP Oil & Gas Corp.*†
60
210
10
20
10
10
$
118
118
76
68
63
48
227,721
130
274
90
120
100
100
60
190
110
160
80
80
60
60
90
140
13,558
12,689
9,547
9,023
8,443
7,542
7,460
7,024
6,978
5,906
5,719
5,285
4,176
4,085
4,054
3,990
70
430
110
120
85
90
120
30
175
3,956
3,883
3,813
3,780
3,724
3,422
3,302
3,298
3,292
90
210
30
30
3,278
3,083
2,872
2,788
70
50
40
155
70
110
110
60
2,717
2,641
2,636
2,553
2,549
2,537
2,413
2,410
40
2,355
210
90
50
2,323
2,188
1,973
June 30, 2008
®
MARKET
VALUE
SHARES
Gulf Island Fabrication, Inc.†
Petroquest Energy, Inc.*†
Bill Barrett Corp.*†
TXCO Resources, Inc.*
GulfMark Offshore, Inc.*
Newpark Resources, Inc.*
Allis-Chalmers Energy, Inc.*†
BPZ Resources, Inc.*†
Vaalco Energy, Inc.*†
Petroleum
Development Corp.*†
Dril-Quip, Inc.*
Oilsands Quest, Inc.*†
Parallel Petroleum Corp.*†
General Maritime Corp.†
Delta Petroleum Corp.*†
GeoMet, Inc.*
Lufkin Industries, Inc.
T-3 Energy Services, Inc. —
Class A*†
International Coal
Group, Inc.*†
USEC, Inc.*†
Geokinetics, Inc.*
ION Geophysical Corp.*†
Uranium Resources, Inc.*†
Bristow Group, Inc.*†
Pacific Ethanol, Inc.*†
Ship Finance International Ltd.†
Union Drilling, Inc.*
Double Hull Tankers, Inc.†
Energy Partners Ltd.*
Parker Drilling Co.*†
VeraSun Energy Corp.*†
Evergreen Energy Inc.*
Total Energy
MATERIALS 2.8%
Greif, Inc. — Class A†
Olin Corp.†
Compass Minerals
International, Inc.
Worthington Industries, Inc.
Schnitzer Steel Industries, Inc. —
Class A
Texas Industries, Inc.†
AptarGroup, Inc.†
NewMarket Corp.†
Minerals Technologies, Inc.†
Olympic Steel, Inc.†
Ferro Corp.†
Rock-Tenn Co. — Class A†
Kaiser Aluminum Corp.
A. Schulman, Inc.†
40
70
30
150
30
210
90
50
170
$
1,957
1,883
1,782
1,764
1,745
1,651
1,602
1,470
1,440
20
20
190
60
40
40
95
10
1,330
1,260
1,235
1,208
1,039
1,021
901
833
10
795
60
124
40
40
140
10
190
10
10
20
10
10
20
10
783
754
724
698
517
495
344
295
217
201
149
100
83
17
219,558
100
180
80
190
15,280
8,883
5,122
4,974
60
190
4,834
3,895
30
60
80
50
50
40
160
100
50
110
3,438
3,368
3,356
3,311
3,179
3,037
3,002
2,999
2,676
2,533
MARKET
VALUE
SHARES
PolyOne Corp.*†
Glatfelter
Headwaters, Inc.*†
Stepan Co.
OM Group, Inc.*†
Hercules, Inc.
Century Aluminum Co.*†
Wausau Paper Corp.
Coeur d’Alene Mines Corp.*†
Schweitzer-Mauduit
International, Inc.
Koppers Holdings, Inc.
Neenah Paper, Inc.
Brush Engineered
Materials, Inc.*
W.R. Grace & Co.*†
Calgon Carbon Corp.*†
Buckeye Technologies, Inc.*
Innospec, Inc.†
Myers Industries, Inc.
Sensient Technologies Corp.
LSB Industries, Inc.*†
H.B. Fuller Co.†
Silgan Holdings, Inc.†
Spartech Corp.
Rockwood Holdings, Inc.*†
Hecla Mining Co.*†
RTI International Metals, Inc.*
A.M. Castle & Co.
Amcol International Corp.†
Georgia Gulf Corp.†
Total Materials
Flowers Foods, Inc.†
Central European
Distribution Corp.*†
Longs Drug Stores Corp.†
Casey’s General Stores, Inc.
Universal Corp.
Fresh Del Monte Produce, Inc.*
Darling International, Inc.*†
Spartan Stores, Inc.†
Winn-Dixie Stores, Inc.*†
Alliance One
Sanderson Farms, Inc.†
Nash Finch Co.†
Cal-Maine Foods, Inc.†
Ingles Markets, Inc. — Class A
Farmer Brothers Co.†
Pilgrim’s Pride Corp.†
Pantry, Inc.*
Ralcorp Holdings, Inc.*†
Village Super Market
J&J Snack Foods Corp.†
THE
RYDEX
350
180
200
50
64
120
30
250
605
$
2,440
2,432
2,354
2,281
2,099
2,032
1,995
1,928
1,755
100
40
100
1,685
1,675
1,671
60
60
80
140
60
135
30
40
35
15
80
20
50
10
10
10
10
1,465
1,409
1,237
1,184
1,129
1,100
845
792
785
761
754
696
463
356
286
285
29
111,810
190
5,385
60
90
150
70
100
140
100
140
4,449
3,790
3,476
3,165
2,357
2,313
2,300
2,243
410
60
60
60
80
80
130
150
24
30
40
2,095
2,071
2,056
1,979
1,866
1,692
1,689
1,599
1,187
1,157
1,096
| 49
June 30, 2008
®
MARKET
VALUE
SHARES
Central Garden and Pet Co. —
Class A*
Ruddick Corp.†
Reddy Ice Holdings, Inc.†
Chattem, Inc.*†
Jones Soda Co.*†
Green Mountain Coffee
Roasters, Inc.*†
Synutra International, Inc.*†
Hain Celestial Group, Inc.*
American Oriental
Bioengineering, Inc.*
Chiquita Brands
MGP Ingredients, Inc.
UTILITIES 1.2%
Nicor, Inc.†
Cleco Corp.†
Unisource Energy Corp.†
Aquila, Inc.*†
NorthWestern Corp.†
Laclede Group, Inc.
UIL Holding Corp.†
Mge Energy, Inc.
ITC Holdings Corp.
CH Energy Group, Inc.†
Westar Energy, Inc.†
Piedmont Natural Gas Co.†
New Jersey Resources Corp.†
Central Vermont Public
Service Corp.
IDACORP, Inc.†
Black Hills Corp.
Southwest Gas Corp.
Northwest Natural Gas Co.
Avista Corp.†
Allete, Inc.†
South Jersey Industries, Inc.†
El Paso Electric Co.*†
Total Utilities
tw telecom Inc.*
Premiere Global Services, Inc.*†
NTELOS Holdings Corp.
Cincinnati Bell, Inc.*†
iPCS, Inc. — Class A*
Consolidated Communications
Holdings, Inc.†
Cogent Communications
Group, Inc.*†
50 |
THE
RYDEX
260
30
50
10
140
$
1,066
1,029
684
651
451
10
10
10
376
323
235
20
197
10
10
152
58
53,187
110
160
110
900
130
70
90
80
50
70
100
80
60
4,685
3,733
3,411
3,393
3,304
2,826
2,647
2,609
2,555
2,490
2,151
2,093
1,959
90
130
40
30
25
20
10
20
10
10
10
1,743
1,555
1,390
867
801
595
463
429
420
374
198
46,691
320
210
100
630
80
5,130
3,062
2,537
2,508
2,370
154
2,293
170
2,278
MARKET
VALUE
SHARES
Shenandoah
Telecommunications Co.
140
Syniverse Holdings, Inc.*†
110
Cbeyond, Inc.*†
90
Alaska Communications Systems
Group, Inc.†
110
PAETEC Holding Corp.*†
200
SureWest Communications
130
Rural Cellular Corp. —
Class A*†
10
General Communication, Inc. —
Class A*
20
Virgin Mobile USA, Inc. —
Class A*†
20
Total Common Stocks
(Cost $1,763,437)
Lending Trust Prime
Portfolio (Note 9)
845,476
(Cost $845,476)
$
1,823
1,782
1,442
1,313
1,270
1,096
445
137
55
29,541
1,878,620
845,476
845,476
FACE
AMOUNT
issued 06/30/08 at 1.75%
due 07/01/08
$348,994
issued 06/30/08 at 1.74%
due 07/01/08
348,994
Morgan Stanley issued 06/30/08
at 1.70% due 07/01/08
348,994
issued 06/30/08 at 0.25%
due 07/01/08
345,633
(Cost $1,392,615)
(Cost $4,001,528)
348,994
348,994
348,994
345,633
1,392,615
$ 4,116,711
$ (162,997)
$ 3,953,714
June 30, 2008
®
CONTRACTS
September 2008 Russell 2000 Index
19
UNREALIZED
LOSS
$
(46,486)
$
(48,500)
UNITS
August 2008 Russell 2000 Index
$1,843,040)
June 2008 Russell 2000 Index Swap,
$2,863,830)
Value $4,706,870)
2,672
4,153
(105,933)
$ (154,433)
** Total Return based on Russell 2000 Index +/- financing at a variable rate.
† All or a portion of this security is on loan at June 30, 2008 – See Note 9.
THE
RYDEX
| 51
(Unaudited)
June 30, 2008
RUSSELL 2000 1.5x STRATEGY FUND
®
MARKET
VALUE
SHARES
COMMON STOCKS 69.3%
1,026
Equinix, Inc.*†
444
Itron, Inc.*
377
Sybase, Inc.*†
1,160
1,040
SAIC, Inc.*†
1,334
Ansys, Inc.*†
546
Anixter International, Inc.*†
427
Polycom, Inc.*†
1,040
1,130
Skyworks Solutions, Inc.*†
2,470
Sohu.com, Inc.*†
340
Parametric Technology Corp.*
1,350
CACI International, Inc. —
Class A*†
469
Perot Systems Corp. —
Class A*†
1,380
ON Semiconductor Corp.*†
2,234
Plexus Corp.*†
740
Intermec, Inc.*
970
Informatica Corp.*†
1,340
1,140
VistaPrint Ltd.*†
694
Plantronics, Inc.
820
Mantech International Corp. —
Class A*†
380
Harmonic, Inc.*†
1,920
Amkor Technology, Inc.*†
1,710
533
Class A*
760
EarthLink, Inc.*
1,950
Blackbaud, Inc.†
780
Avocent Corp.*†
880
Euronet Worldwide, Inc.*†
940
Nuance Communications,
Inc.*†
1,001
Cabot Microelectronics
Corp.*†
460
Silicon Image, Inc.*†
2,050
Net 1 UEPS Technologies, Inc.*
610
550
Cybersource Corp.*†
870
SPSS, Inc.*†
400
1,230
DTS, Inc. — Class A*
460
Multi-Fineline Electronix,
Inc.*†
520
ATMI, Inc.*†
510
52 |
THE
RYDEX
$
41,625
39,614
37,078
34,127
31,710
27,761
25,728
25,402
25,334
24,453
24,379
23,950
22,504
21,466
20,714
20,486
20,483
20,448
20,154
18,628
18,571
18,302
18,286
18,259
17,801
17,712
17,070
16,867
16,692
16,368
15,886
15,686
15,249
14,862
14,823
14,718
14,555
14,548
14,539
14,407
14,388
14,239
MARKET
VALUE
SHARES
Triquint Semiconductor, Inc.*†
SYNNEX Corp.*†
Manhattan Associates, Inc.*†
S1 Corp.*
TTM Technologies, Inc.*†
Electronics for Imaging, Inc.*†
Standard Microsystems
Corp.*†
Teletech Holdings, Inc.*
Sapient Corp.*†
SYNTEL INC†
ViaSat, Inc.*†
Interwoven, Inc.*
Cognex Corp.
L-1 Identity Solutions, Inc.*†
Anadigics, Inc.*†
Zoran Corp.*
Micrel, Inc.†
OmniVision Technologies,
Inc.*†
Integral Systems, Inc.
Arris Group, Inc.*
JDA Software Group, Inc.*
Marchex, Inc.†
Checkpoint Systems, Inc.*†
Imation Corp.†
Entegris, Inc.*
Methode Electronics, Inc. —
Class A
Monolithic Power
Systems, Inc.*
CMGI, Inc.*
Bankrate, Inc.*†
Heartland Payment
Systems, Inc.†
Pericom Semiconductor
Corp.*†
DG FastChannel, Inc.*
3Com Corp.*†
OSI SYSTEMS INC*
Take-Two Interactive
Software, Inc.*
Cass Information
Systems, Inc.†
Cohu, Inc.
FEI Co.*†
Microsemi Corp.*
InfoSpace, Inc.
Imergent, Inc.†
2,336
550
1,370
577
1,800
1,030
930
$
14,156
13,799
13,741
13,692
13,626
13,606
13,578
500
680
2,110
400
660
1,100
562
970
1,310
1,090
1,390
13,575
13,573
13,546
13,488
13,339
13,211
12,954
12,920
12,903
12,753
12,718
1,050
328
1,490
690
420
970
560
510
860
1,767
12,694
12,694
12,590
12,489
12,298
11,950
11,693
11,689
11,670
11,574
1,100
11,495
530
1,070
290
11,459
11,342
11,330
480
11,328
760
650
5,076
500
11,278
11,212
10,761
10,710
417
10,663
330
720
456
410
1,210
850
10,570
10,570
10,388
10,324
10,079
10,064
June 30, 2008
®
MARKET
VALUE
SHARES
EMS Technologies, Inc.*
Kulicke & Soffa
Industries, Inc.*†
RF Micro Devices, Inc.*†
Oplink Communications, Inc.*
Radisys Corp.*
Blue Coat Systems, Inc.*†
Radiant Systems, Inc.*
Eagle Test Systems, Inc.*
CTS Corp.†
Novatel Wireless, Inc.*
Semitool, Inc.*
Super Micro Computer, Inc.*
Liquidity Services Inc.*
Technitrol, Inc.†
Sycamore Networks, Inc.*
DSP Group, Inc.*
Atheros
Kenexa Corp. — Class A*†
Electro Scientific
Industries, Inc.*
Ultratech, Inc.*
Omniture, Inc.*
Sigma Designs, Inc.*†
PMC - Sierra, Inc.*†
Sonus Networks, Inc.*†
SonicWALL, Inc.*
CNET Networks, Inc.*
MicroStrategy, Inc. — Class A*
iGate Corp.*
j2 Global
Ness Technologies, Inc.*
Art Technology Group, Inc.*
Intevac, Inc.*†
TIBCO Software, Inc.*†
Adaptec, Inc.*
Netgear, Inc.*
Hittite Microwave Corp.*
Mattson Technology, Inc.*
MAXIMUS, Inc.†
Volterra Semiconductor
Corp.*
Rimage Corp.*
460
1,350
$
10,046
9,855
1,350
3,380
1,020
1,350
1,047
670
880
840
936
620
843
1,240
1,250
800
540
2,830
1,276
9,841
9,802
9,792
9,504
9,486
9,454
9,442
9,408
9,407
9,393
9,383
9,312
9,225
9,224
9,175
9,113
8,932
290
450
8,700
8,478
593
540
450
600
520
1,060
2,370
1,244
690
120
940
1,076
630
8,403
8,381
8,357
8,334
8,216
8,109
8,105
8,024
7,928
7,770
7,642
7,435
7,169
310
630
1,970
570
550
800
1,830
416
160
1,180
157
7,130
6,376
6,304
6,207
6,204
6,120
5,856
5,766
5,699
5,617
5,467
316
427
5,454
5,291
MARKET
VALUE
SHARES
Cirrus Logic, Inc.*
Extreme Networks, Inc.*
Ultra Clean Holdings*
Digital River, Inc.*
ADTRAN, Inc.†
Opnext, Inc.*
Loral Space &
Communications, Inc.*
Gartner, Inc. —
Class A*†
Exar Corp.*
Corp.*
Vignette Corp.*
SI International, Inc.*
infoGROUP, Inc.
Network Equipment
Synaptics, Inc.*†
Harris Stratex Networks, Inc. —
Class A*
Faro Technologies, Inc.*
Smith Micro Software, Inc.*
THQ, Inc.*†
Intervoice, Inc.*
Trident Microsystems, Inc.*
Vasco Data Security
International*†
TheStreet.com, Inc.†
LivePerson, Inc.*
Perficient, Inc.*†
KEMET Corp.*†
MercadoLibre, Inc.*†
Wright Express Corp.*
Emulex Corp.*
Progress Software Corp.*†
Blackboard, Inc.*†
Immersion Corp.*
Rofin-Sinar Technologies, Inc.*
Global Cash Access
Holdings, Inc.*
MKS Instruments, Inc.*†
Internap Network
Services Corp.*
Taleo Corp.*†
Ariba, Inc.*
LoopNet, Inc.*†
InterDigital, Inc.*
Cavium Networks, Inc.*†
THE
RYDEX
936
1,821
640
130
210
920
$
5,204
5,172
5,094
5,015
5,006
4,950
279
4,916
237
640
4,911
4,826
98
400
227
300
1,003
4,802
4,800
4,753
4,488
4,403
1,210
110
4,296
4,150
430
160
279
686
180
100
620
950
4,081
4,027
3,937
3,910
3,647
3,608
3,534
3,468
300
480
1,090
310
880
80
110
220
100
60
300
66
3,159
3,125
3,063
2,995
2,851
2,759
2,728
2,563
2,557
2,294
2,043
1,993
290
90
1,989
1,971
420
100
130
160
70
80
1,966
1,959
1,912
1,808
1,702
1,680
| 53
June 30, 2008
®
MARKET
VALUE
SHARES
Littelfuse, Inc.*
CPI International, Inc.*
Semtech Corp.*†
Synchronoss
Tessera Technologies, Inc.*
Interactive Intelligence, Inc.*
CSG Systems
Quest Software, Inc.*†
Formfactor, Inc.*†
SiRF Technology
Holdings, Inc.*
Lawson Software, Inc.*
Limelight Networks Inc.*
AsiaInfo Holdings, Inc.*
ExlService Holdings, Inc.*†
PC Connection, Inc.*
TiVo, Inc.*
Advanced Analogic
Technologies, Inc.*
Tekelec*
Ultimate Software
Group, Inc.*
Gevity HR, Inc.
Rackable Systems, Inc.*
FINANCIALS 11.4%
Nationwide Health
Properties, Inc.†
Waddell & Reed Financial, Inc. —
Class A†
Knight Capital Group, Inc. —
Class A*†
Senior Housing Properties
Trust†
Platinum Underwriters
Holdings Ltd.†
National Retail Properties, Inc.†
NewAlliance Bancshares, Inc.†
IPC Holdings Ltd.†
Alexandria Real Estate
Equities, Inc.†
Entertainment Properties
Trust†
Montpelier Re Holdings Ltd.
Aspen Insurance Holdings Ltd.
Post Properties, Inc.†
Healthcare Realty Trust, Inc.†
54 |
THE
RYDEX
50
128
110
$
1,578
1,574
1,548
167
90
123
1,508
1,473
1,432
126
90
70
1,389
1,333
1,290
250
140
266
80
65
90
90
1,080
1,018
1,016
946
912
838
555
130
30
537
441
10
46
10
356
247
134
1,969,620
1,157
1,300
36,434
29,588
800
28,008
1,430
25,711
1,290
25,194
710
1,070
1,760
827
23,153
22,363
21,965
21,957
220
21,415
430
1,440
21,259
21,240
400
850
660
811
20,416
20,119
19,635
19,277
MARKET
VALUE
SHARES
First Industrial Realty
Trust, Inc.†
Max Capital Group Ltd.†
International Bancshares
Corp.†
Extra Space Storage, Inc.†
Eastgroup Properties, Inc.†
Susquehanna Bancshares, Inc.†
DiamondRock Hospitality Co.†
Cash America
Sunstone Hotel Investors, Inc.
LaSalle Hotel Properties
Greenhill & Co., Inc.†
Delphi Financial Group, Inc. —
Class A†
Stifel Financial Corp.*
National Financial
Partners Corp.†
Digital Realty Trust, Inc.†
Safety Insurance Group, Inc.†
Ezcorp, Inc. — Class A*
Cedar Shopping
Centers, Inc.†
TrustCo Bank Corp.†
Park National Corp.†
IBERIABANK Corp.†
Acadia Realty Trust†
Alternative Asset Management
Acquisition Corp.*†
NorthStar Realty
Finance Corp.†
FelCor Lodging Trust, Inc.†
Banco Latinoamericano de
Exportaciones SA
First Financial Corp.†
Strategic Hotels & Resorts, Inc.
Ramco-Gershenson
Properties Trust
Glacier Bancorp, Inc.†
SeaBright Insurance
Holdings, Inc.*
Navigators Group, Inc.*†
NTR Acquisition Co.*†
Resource America, Inc. —
Class A
Ashford Hospitality Trust, Inc.
700
900
$
19,229
19,197
848
1,140
406
1,264
1,540
18,122
17,510
17,417
17,304
16,771
530
987
650
300
307
1,160
16,430
16,384
16,334
16,158
15,841
15,811
670
450
15,504
15,475
710
340
390
1,066
14,072
13,909
13,903
13,592
1,146
1,750
240
290
470
540
13,431
12,985
12,936
12,896
12,657
12,501
1,340
12,462
1,470
1,160
12,230
12,180
750
396
360
1,280
12,143
12,122
12,121
11,994
560
710
11,502
11,353
780
206
1,150
11,294
11,134
11,132
1,180
2,380
10,998
10,996
June 30, 2008
®
MARKET
VALUE
SHARES
Universal Health Realty
Income Trust
United America Indemnity
Ltd. — Class A*
Tower Group, Inc.
Urstadt Biddle Properties, Inc.
Prospect Capital Corp.†
Hercules Technology
Growth Capital, Inc.
Sterling Bancshares, Inc.†
Compass Diversified Trust
Harleysville National Corp.
Mission West Properties
CNA Surety Corp.*
Odyssey Re Holdings Corp.
Pacific Capital Bancorp†
Donegal Group, Inc. — Class A
Chemical Financial Corp.†
Hersha Hospitality Trust
Highwoods Properties, Inc.
Tanger Factory Outlet
Centers, Inc.†
Getty Realty Corp.†
Associated Estates Realty
Corp.
Saul Centers, Inc.
Univest Corp. of Pennsylvania
First Community
Bancshares, Inc.
Oriental Financial Group
Cathay General Bancorp†
BioMed Realty Trust, Inc.
Agree Realty Corp.
National Penn
Bancshares, Inc.†
National Health
Investors, Inc.†
First Merchants Corp.
PHH Corp.*
Renasant Corp.
Potlatch Corp.†
GFI Group, Inc.†
Advance America Cash
Advance Centers, Inc.†
DCT Industrial Trust, Inc.†
Santander BanCorp
366
$
10,980
820
710
260
500
720
800
10,963
10,948
10,806
10,595
10,555
10,544
1,180
1,136
900
916
930
802
810
280
720
620
480
1,285
674
307
10,537
10,326
10,287
10,223
10,193
10,137
10,125
9,940
9,922
9,839
9,792
9,702
9,658
9,646
268
660
9,629
9,511
887
200
470
9,500
9,398
9,334
330
650
836
370
410
9,306
9,269
9,087
9,076
9,041
660
8,765
307
720
480
567
590
190
950
8,753
8,734
8,712
8,703
8,691
8,573
8,560
1,676
380
990
767
8,514
8,489
8,197
8,138
MARKET
VALUE
SHARES
Berkshire Hills Bancorp, Inc.†
Green Bankshares, Inc.†
Dollar Financial Corp.*
West Coast Bancorp†
Argo Group International
Holdings Ltd.*
Meadowbrook Insurance
Group, Inc.
Boston Private Financial
Holdings, Inc.†
Assured Guaranty Ltd.†
FirstMerit Corp.†
Frontier Financial Corp.†
Westamerica Bancorporation†
ProAssurance Corp.*†
Prosperity Bancshares, Inc.†
Columbia Banking
Systems, Inc.
Phoenix Cos., Inc.
United Community
Banks, Inc.†
UMB Financial Corp.†
Glimcher Realty Trust
Education Realty Trust, Inc.
Winthrop Realty Trust
Washington Real Estate
Investment Trust†
PennantPark Investment Corp.
First Bancorp†
Grubb & Ellis Co.†
Evercore Partners, Inc. —
Class A
RAIT Financial Trust†
WesBanco, Inc.
Anthracite Capital, Inc.†
Provident Financial
Services, Inc.
Group, Inc.
American Campus
Communities, Inc.
1st Source Corp.
Corporate Office Properties
Trust SBI†
Sierra Bancorp†
Advanta Corp.
Kohlberg Capital Corp.†
THE
RYDEX
350
337
564
516
895
$
8,033
7,970
7,907
7,797
7,760
230
7,719
1,450
7,685
1,334
420
458
870
140
153
150
260
140
7,564
7,556
7,470
7,412
7,363
7,361
7,209
6,950
6,735
347
863
6,708
6,567
740
121
550
520
1,510
1,666
6,312
6,204
6,149
6,058
6,040
5,998
190
790
450
1,460
5,710
5,696
5,688
5,621
590
740
320
763
5,605
5,491
5,488
5,372
380
5,324
410
5,273
186
320
5,178
5,152
150
310
800
500
770
5,150
5,115
5,032
5,000
4,882
| 55
June 30, 2008
®
MARKET
VALUE
SHARES
Zenith National
Insurance Corp.
Texas Capital
Bancshares, Inc.*
CompuCredit Corp.*†
Federal Agricultural
Mortgage Corp.
Central Pacific
Financial Corp.†
Hallmark Financial
Services, Inc.*
Interactive Brokers
Group, Inc. — Class A*†
CapLease, Inc.†
First South Bancorp, Inc.†
Royal Bancshares of
Pennsylvania, Inc. — Class A†
Sanders Morris Harris Group Inc.†
Hilb Rogal & Hobbs Co.
Security Bank Corp.†
eHealth, Inc.*
Capitol Bancorp, Ltd.
Maguire Properties, Inc.†
MFA Mortgage Investments, Inc.
Thomas Weisel Partners
Group, Inc.*
Bancfirst Corp.
FNB Corp.†
Integra Bank Corp.
Omega Healthcare
Investors, Inc.
BankAtlantic Bancorp, Inc. —
Class A†
U-Store-It Trust
Hancock Holding Co.†
First State Bancorporation
Portfolio Recovery
Imperial Capital Bancorp, Inc.
Midwest Banc Holdings, Inc.
Franklin Street Properties
Corp., Inc.
Selective Insurance
Group, Inc.†
FCStone Group, Inc.*†
56 |
THE
RYDEX
138
140
$
4,852
4,722
290
760
4,640
4,560
180
4,460
396
4,221
429
1,050
4,148
4,116
120
500
290
3,856
3,745
3,735
396
540
80
593
190
370
270
614
490
3,726
3,661
3,477
3,475
3,355
3,319
3,286
3,199
3,195
560
70
1,330
248
370
3,063
2,996
2,993
2,921
2,897
170
180
2,831
2,567
1,440
131
200
60
427
2,534
2,443
2,390
2,357
2,349
62
556
400
470
2,325
2,302
2,292
2,289
180
2,275
120
80
2,251
2,234
MARKET
VALUE
SHARES
Avatar Holdings Inc.*
Harleysville Group, Inc.
Amcore Financial, Inc.†
Cousins Properties, Inc.
Ares Capital Corp.
Asta Funding, Inc.†
United Security Bancshares†
AmericanWest Bancorp
City Bank†
Trustmark Corp.†
First Potomac Realty Trust
MarketAxess Holdings, Inc.*†
Equity Lifestyle Properties, Inc.
Primus Guaranty Ltd.*
Community Bancorp*†
Citizens Banking Corp.†
Triad Guaranty, Inc.*†
Newcastle Investment Corp.†
Franklin Bank Corp.*†
RLI Corp.†
First Financial Bankshares, Inc.†
Anworth Mortgage Asset Corp.
MB Financial Corp.
Great Southern Bancorp, Inc.†
QC Holdings, Inc.†
Capital Corp of the West
Inland Real Estate Corp.†
Centerline Holding Co.†
LandAmerica Financial
Group, Inc.†
Stewart Information
Services Corp.
PFF Bancorp, Inc.†
FX Real Estate and
Entertainment, Inc.*
Bankunited Financial Corp. —
Class A†
FBR Capital Markets Corp.*
TierOne Corp.†
Total Financials
INDUSTRIALS 10.1%
Bucyrus International, Inc. —
Class A†
Walter Industries, Inc.†
Energy Conversion
Devices, Inc.*†
Wabtec Corp.
Watson Wyatt & Co. Holdings†
Acuity Brands, Inc.†
70
62
335
80
680
180
200
123
756
170
70
70
40
120
20
300
150
250
668
80
860
10
10
70
20
40
50
40
80
20
140
$
2,120
2,097
1,896
1,848
1,829
1,814
1,812
1,788
1,716
1,462
1,236
1,067
1,022
907
880
873
752
705
695
561
525
495
458
456
449
325
319
312
304
288
234
10
222
10
177
193
191
70
133
130
20
20
125
101
92
1,759,125
840
410
61,337
44,596
530
664
565
570
39,029
32,284
29,883
27,406
June 30, 2008
®
MARKET
VALUE
SHARES
FTI Consulting, Inc.*†
Valmont Industries, Inc.
EMCOR Group, Inc.*†
Teledyne Technologies, Inc.*
Belden, Inc.†
Esterline Technologies
Corp.*†
Regal-Beloit Corp.†
Eagle Bulk Shipping Inc.†
Genco Shipping &
Trading Ltd.
Superior Essex, Inc.*
MPS Group, Inc.*†
Applied Industrial
Technologies, Inc.†
GrafTech International Ltd.*†
Watsco, Inc.†
Actuant Corp. — Class A†
Pacer International, Inc.†
Ameron International Corp.
M&F Worldwide Corp.*†
School Specialty, Inc.*†
Nordson Corp.†
Comfort Systerms USA, Inc.†
Triumph Group, Inc.†
Mastec, Inc.*
G & K Services, Inc. —
Class A†
HUB Group, Inc. — Class A*†
Argon ST, Inc.*
Atlas Air Worldwide
Holdings Co., Inc.*
Astec Industries, Inc.*†
Tecumseh Products Co. —
Class A*
Middleby Corp.*†
Woodward Governor Co.†
Cenveo, Inc.*†
Waste Connections, Inc.*†
Universal Forest
Products, Inc.†
Viad Corp.
Interface, Inc. — Class A
Chart Industries, Inc.*
398
260
600
930
490
660
900
$
27,247
27,115
26,844
26,533
23,907
22,361
21,204
427
490
690
21,034
20,702
20,403
300
600
425
817
1,710
730
19,560
19,320
18,968
18,178
18,177
18,170
730
650
410
540
770
126
405
367
470
190
1,020
290
1,270
1,110
826
17,644
17,439
17,138
16,929
16,563
15,117
14,839
14,427
13,973
13,849
13,709
13,659
13,538
13,320
13,191
427
380
520
13,006
12,969
12,896
260
400
12,860
12,856
390
290
357
1,290
390
12,784
12,734
12,731
12,603
12,453
412
470
960
246
12,344
12,121
12,029
11,965
MARKET
VALUE
SHARES
Perini Corp.*†
Encore Wire Corp.†
Beacon Roofing Supply, Inc.*†
Hexcel Corp.*†
Columbus McKinnon Corp. —
Class A*
Robbins & Myers, Inc.†
CoStar Group, Inc.*†
Gorman-Rupp Co.†
Horizon Lines, Inc. — Class A†
CDI Corp.†
Altra Holdings, Inc.*
On Assignment, Inc.*
Bowne & Co., Inc.†
Lindsay Manufacturing Co.†
Administaff, Inc.†
Spherion Corp.*
Michael Baker Corp.*†
Clarcor, Inc.†
ESCO Technologies, Inc.*†
Waste Services Inc.*
SYKES Enterprises, Inc.*†
American Superconductor
Corp.*†
Volt Information
Sciences, Inc.*†
American Railcar
Industries, Inc.†
American Reprographics
Co.*†
Dycom Industries, Inc.*†
Kaman Corp. — Class A
Celadon Group, Inc.*
Brady Corp. — Class A†
AAR Corp.*†
TBS International Ltd. —
Class A*†
Titan International, Inc.
Schawk, Inc.
Baldor Electric Co.†
Houston Wire & Cable Co.†
II-VI, Inc.*†
Kaydon Corp.
Moog, Inc. — Class A*†
Republic Airways
Holdings, Inc.*†
Polypore International, Inc.*
Cubic Corp.
Greenbrier Cos., Inc.†
THE
RYDEX
360
552
1,096
600
$
11,898
11,697
11,629
11,580
480
230
257
280
1,110
427
640
510
1,366
1,276
800
120
357
2,153
450
280
206
1,360
500
11,558
11,470
11,424
11,155
11,044
10,863
10,758
10,577
10,327
10,234
10,200
10,196
9,957
9,947
9,846
9,828
9,666
9,574
9,430
257
9,213
750
8,932
530
8,893
533
610
370
820
235
590
8,874
8,857
8,421
8,192
8,115
7,983
190
200
556
190
330
184
120
160
7,590
7,124
6,666
6,646
6,567
6,425
6,169
5,958
660
220
250
270
147
5,716
5,573
5,570
5,481
5,399
| 57
June 30, 2008
®
MARKET
VALUE
SHARES
Deluxe Corp.
Diamond Management &
Technology Consultants, Inc.
Apogee Enterprises, Inc.†
Insteel Industries, Inc.
Tetra Tech, Inc.*†
Barrett Business Services, Inc.
Flow International Corp.*†
Coleman Cable Inc.*
Sun Hydraulics Corp.†
Pike Electric Corp.*
LB Foster Co. — Class A*
LSI Industries, Inc.
American Commercial
Lines, Inc.*†
Barnes Group, Inc.†
Aecom Technology Corp.*
Consolidated Graphics, Inc.*†
Griffon Corp.*†
First Advantage Corp. —
Class A*
TAL International Group, Inc.
Granite Construction, Inc.†
Raven Industries, Inc.†
Preformed Line Products Co.†
Dynamic Materials Corp.
American Ecology Corp.
Team, Inc.*
Genesee & Wyoming, Inc. —
Class A*
Hudson Highland Group, Inc.*
IKON Office Solutions, Inc.
Geo Group, Inc.*
H&E Equipment Services,
Inc.*†
Heico Corp.†
Clean Harbors, Inc.*†
Kforce, Inc.*
Otter Tail Power Co.†
Ceradyne, Inc.*†
Stanley, Inc.*
TrueBlue, Inc.*
Forward Air Corp.
Force Protection, Inc.*†
Pinnacle Airlines Corp.*†
Allegiant Travel Co.*
58 |
THE
RYDEX
300
1,330
$
5,346
4,961
940
300
260
210
390
230
570
427
130
250
125
268
500
4,897
4,848
4,761
4,750
4,614
4,499
4,446
4,407
4,195
4,153
4,150
4,111
4,060
370
310
170
120
79
440
4,044
3,931
3,925
3,904
3,892
3,854
218
150
107
100
80
90
100
80
3,455
3,411
3,374
3,278
3,225
2,966
2,953
2,746
80
250
65
220
110
2,722
2,618
2,599
2,482
2,475
199
70
30
240
50
50
50
126
40
410
427
70
70
2,392
2,278
2,132
2,038
1,942
1,715
1,676
1,664
1,384
1,357
1,349
1,301
1,281
MARKET
VALUE
SHARES
Taser International, Inc.*
Mobile Mini, Inc.*†
ICT Group, Inc.*
SkyWest, Inc.
Mueller Water Products,
Inc. — Class A
Orion Energy Systems Inc.*†
AirTran Holdings, Inc.*†
Albany International
Corp. — Class A
Healthcare Services Group†
United Stationers, Inc.*†
Resources Connection, Inc.
Evergreen Solar, Inc.*†
Knoll, Inc.
Old Dominion Freight
Line, Inc.*†
Heartland Express, Inc.†
COMSYS IT Partners, Inc.*
Gencorp, Inc.*†
Total Industrials
HEALTH CARE 9.8%
Hologic, Inc.*†
Illumina, Inc.*†
OSI Pharmaceuticals, Inc.*†
BioMarin Pharmaceuticals,
Inc.*†
Perrigo Co.†
Inverness Medical
Innovations, Inc.*†
United Therapeutics Corp.*
Myriad Genetics, Inc.*†
Cepheid, Inc.*†
Parexel International Corp.*
Bio-Rad Laboratories, Inc. —
Class A*
NuVasive, Inc.*†
Isis Pharmaceuticals, Inc.*†
Amedisys, Inc.*†
Medicis Pharmaceutical Corp. —
Class A†
Medicines Co.*†
ArthroCare Corp.*†
West Pharmaceutical
Services, Inc.†
Cubist Pharmaceuticals, Inc.*†
HealthExtras, Inc.*
Meridian Bioscience, Inc.†
AMERIGROUP Corp.*†
250
62
140
90
$
1,248
1,240
1,148
1,139
120
90
440
968
900
898
30
50
20
20
40
30
870
761
739
407
388
365
10
20
20
20
300
298
182
143
1,553,721
2,772
400
800
60,430
34,844
33,056
1,136
1,000
32,921
31,770
940
310
760
597
580
890
894
31,180
30,302
28,758
27,175
26,500
25,027
23,521
278
480
1,570
420
22,487
21,437
21,399
21,176
917
950
550
450
19,055
18,829
18,540
18,364
423
997
590
660
846
18,307
17,806
17,783
17,767
17,597
June 30, 2008
®
MARKET
VALUE
SHARES
The Trizetto Group, Inc.*†
Alnylam Pharmaceuticals,
Inc.*†
Alexion Pharmaceuticals,
Inc.*†
Analogic Corp.
eResearch Technology, Inc.*
Celera Corp.*
Steris Corp.†
Healthspring, Inc.*†
Luminex Corp.*†
Auxilium
Eclipsys Corp.*†
Conmed Corp.*†
AmSurg Corp.*
Vital Signs, Inc.
Alkermes, Inc.*†
Phase Forward, Inc.*†
Zoll Medical Corp.*†
Sciele Pharma, Inc.*
Sun Healthcare Group, Inc.*†
Natus Medical, Inc.*†
Apria Healthcare
Group, Inc.*†
Bruker BioSciences Corp.*
Sirona Dental Systems, Inc.*†
Invacare Corp.†
Chemed Corp.†
Group, Inc.*†
AMN Healthcare
Services, Inc.*†
Viropharma, Inc.*†
CryoLife, Inc.*
Medarex, Inc.*†
Albany Molecular
Research, Inc.*
Onyx Pharmaceuticals, Inc.*†
National Healthcare Corp.†
Corvel Corp.*
Cypress Bioscience, Inc.*†
Angiodynamics, Inc.*
Sunrise Senior Living, Inc.*
SonoSite, Inc.*†
Res-Care, Inc.*
Genoptix Inc.*†
Bentley Pharmaceuticals, Inc.*
Align Technology, Inc.*†
Affymetrix, Inc.*
820
$
17,532
630
16,840
230
260
940
1,440
560
951
780
16,675
16,398
16,394
16,358
16,106
16,053
16,029
470
860
580
630
270
1,240
830
440
530
740
1,010
640
360
15,801
15,790
15,399
15,340
15,331
15,326
14,915
14,815
14,729
14,319
13,524
13,402
13,079
670
990
490
620
860
340
12,991
12,721
12,701
12,673
12,642
12,447
773
12,190
703
1,060
1,014
1,700
11,895
11,724
11,600
11,237
840
310
240
370
320
1,486
780
470
377
590
330
640
930
940
11,147
11,036
10,999
10,952
10,838
10,684
10,624
10,566
10,560
10,490
10,411
10,336
9,756
9,673
MARKET
VALUE
SHARES
RTI Biologics, Inc.*†
SurModics, Inc.*†
Computer Programs &
Systems, Inc.
Providence Service Corp.*†
Immucor, Inc.*†
Cynosure, Inc.*
Mentor Corp.†
Emergent Biosolutions, Inc.*
Cantel Medical Corp.*
Omnicell, Inc.*
Cross Country
Healthcare, Inc.*
Varian, Inc.*
Datascope Corp.
American Medical
Systems Holdings, Inc.*†
Medical Action
Industries, Inc.*
Nighthawk Radiology
Holdings, Inc.*†
Allscripts Healthcare
Solutions, Inc.*
Haemonetics Corp.*†
Dionex Corp.*†
Magellan Health
Services, Inc.*†
Healthsouth Corp.*†
Valeant Pharmaceuticals
International*†
HMS Holdings Corp.*
Symmetry Medical, Inc.*†
Nektar Therapeutics*
Obagi Medical
Products, Inc.*†
Regeneron
athenahealth, Inc.*†
Pozen, Inc.*†
Geron Corp.*†
American Dental
Partners, Inc.*†
Medcath Corp.*
Savient Pharmaceuticals,
Inc.*†
Ariad Pharmaceuticals, Inc.*
Conceptus, Inc.*†
MannKind Corp.*†
Air Methods Corp.*
Abaxis, Inc.*
OraSure Technologies, Inc.*†
Alpharma, Inc. — Class A*†
THE
RYDEX
1,078
210
$
9,432
9,416
530
430
330
427
520
280
320
760
730
550
9,185
9,077
8,540
8,463
8,440
7,790
7,789
7,547
7,388
7,249
480
130
140
6,917
6,638
6,580
430
6,429
610
6,326
866
6,131
467
100
80
5,795
5,546
5,310
140
300
5,184
4,989
290
227
300
1,400
4,962
4,874
4,866
4,690
536
4,583
308
140
395
1,110
4,448
4,306
4,298
3,830
310
203
3,680
3,650
130
1,320
167
1,020
120
124
703
116
3,289
3,168
3,088
3,060
3,000
2,992
2,629
2,613
| 59
June 30, 2008
®
MARKET
VALUE
SHARES
Emergency Medical Services
Universal American
Financial Corp.*
PSS World Medical, Inc.*
Wright Medical Group, Inc.*†
Cutera, Inc.*
Orthofix International NV*†
XenoPort, Inc.*
Dendreon Corp.*†
Total Health Care
Priceline.com, Inc.*†
DeVry, Inc.†
Chipotle Mexican Grill, Inc.*†
Bally Technologies, Inc.*†
Exide Technologies*†
LKQ Corp.*†
Jack in the Box, Inc.*
Wolverine World Wide, Inc.
Fossil, Inc.*†
J. Crew Group, Inc.*†
Zale Corp.*†
Callaway Golf Co.
Quiksilver, Inc.*†
Unifirst Corp.
La-Z-Boy, Inc.†
Buckle, Inc.
True Religion Apparel, Inc.*†
Furniture Brands
Lear Corp.*
Iconix Brand Group, Inc.*†
Charlotte Russe Holding, Inc.*
Valassis Communications,
Inc.*†
DineEquity, Inc.†
Sauer, Inc.
Dress Barn, Inc.*†
Netflix, Inc.*†
P.F. Chang’s China
Bistro, Inc.*†
Cox Radio Inc. — Class A*
60 |
THE
RYDEX
100
$
2,263
210
130
50
140
30
10
40
2,146
2,119
1,421
1,264
869
390
178
1,507,916
386
727
900
337
177
720
676
1,320
1,210
940
100
500
756
680
630
600
590
499
850
1,226
1,270
1,484
320
1,860
310
530
44,568
38,982
28,197
25,396
24,638
24,336
23,133
22,123
21,865
21,065
20,907
20,190
20,163
19,768
18,755
17,160
16,909
16,472
16,057
15,301
15,024
14,573
14,291
14,229
14,176
14,125
1,050
970
650
1,100
740
14,028
13,755
13,371
13,288
13,142
990
330
387
900
460
12,395
12,329
12,055
12,042
11,992
530
266
990
11,840
11,723
11,682
MARKET
VALUE
SHARES
World Wrestling
Entertainment, Inc.
Texas Roadhouse, Inc.*†
Skechers U.S.A., Inc. —
Class A*
Stoneridge, Inc.*
Superior Industries
Marcus Corp.†
Town Sports International
Holdings, Inc.*
Tenneco, Inc.*†
Red Robin Gourmet
Burgers, Inc.*†
FTD Group, Inc.
Perry Ellis International, Inc.*
Pinnacle Entertainment, Inc.*†
Spartan Motors, Inc.†
Matthews International
Gaylord Entertainment Co.*†
Entravision Communications
Corp. — Class A*
Champion Enterprises, Inc.*†
Sotheby’s†
1-800-FLOWERS.com, Inc.*
Skyline Corp.
Capella Education Co.*†
Hooker Furniture Corp.
Monro Muffler Brake, Inc.
thinkorswim Group, Inc.*†
California Pizza Kitchen, Inc.*†
G-III Apparel Group Ltd.*
Blyth, Inc.†
Men’s Wearhouse, Inc.†
Stein Mart, Inc.†
Beazer Homes USA, Inc.†
Sinclair Broadcast Group, Inc. —
Class A†
American Greetings Corp. —
Class A
Lululemon Athletica, Inc.*†
750
390
1,274
$
11,603
11,525
11,428
570
660
1,060
11,263
11,260
10,642
620
697
10,466
10,420
1,110
420
760
10,367
10,332
10,283
370
750
830
910
450
730
884
1,237
10,264
9,998
9,636
9,628
9,549
9,410
9,273
9,240
200
370
9,052
8,865
2,205
1,500
380
330
1,320
1,284
360
140
480
533
1,170
730
640
640
470
1,646
1,330
8,864
8,775
8,751
8,702
8,514
8,474
8,460
8,351
8,314
8,256
8,249
8,169
7,898
7,699
7,656
7,423
7,408
960
220
7,296
7,071
570
600
1,000
230
7,034
6,978
6,800
6,684
June 30, 2008
®
MARKET
VALUE
SHARES
Steinway Musical
Instruments, Inc.*
American Axle & Manufacturing
Holdings, Inc.†
Volcom, Inc.*†
Systemax, Inc.†
DSW, Inc.*†
M/I Homes, Inc.†
Genesco, Inc.*†
Cherokee, Inc.
Vail Resorts, Inc.*†
Winnebago Industries, Inc.†
Stage Stores, Inc.
Overstock.com, Inc.*†
Martha Stewart Omnimedia,
Inc.*†
Cooper Tire & Rubber Co.†
Gymboree Corp.*
Hayes Lemmerz International,
Inc.*
Arbitron, Inc.
Interactive Data Corp.
Triarc Cos., Inc. — Class B†
Conn’s, Inc.*†
Buffalo Wild Wings, Inc.*†
O’Charleys, Inc.
Regis Corp.
Noble International Ltd.
Sealy Corp.†
McCormick & Schmick’s
Seafood Restaurants, Inc.*
MarineMax, Inc.*†
CSK Auto Corp.*
Premier Exhibitions, Inc.*†
Pacific Sunwear of California,
Inc.*†
Fred’s, Inc.†
Sonic Corp.*†
CPI Corp.†
Knology, Inc.*
Aaron Rents, Inc.†
Zumiez, Inc.*†
Multimedia Games, Inc.*†
K12 Inc.*†
Tween Brands, Inc.*
Morningstar, Inc.*†
Bon-Ton Stores, Inc.†
Core-Mark Holding Co., Inc.*
250
$
6,600
820
266
360
516
380
190
280
131
470
410
177
6,552
6,365
6,354
6,079
5,977
5,865
5,642
5,611
4,789
4,785
4,593
616
570
110
4,558
4,469
4,408
1,536
90
170
660
910
250
160
660
386
186
140
820
630
4,362
4,275
4,272
4,178
4,177
4,018
3,973
3,960
3,883
3,696
3,689
3,665
3,616
330
440
310
260
600
3,181
3,155
3,044
2,725
2,724
306
210
140
380
80
100
170
80
100
350
70
90
20
260
50
2,610
2,360
2,072
2,052
2,051
1,873
1,868
1,786
1,658
1,547
1,500
1,481
1,441
1,357
1,310
MARKET
VALUE
SHARES
Gaiam, Inc.*
Corp.†
Krispy Kreme
Doughnuts, Inc.*†
CKX, Inc.*
MTR Gaming Group, Inc.*
Coinstar, Inc.*
BJ’s Restaurants, Inc.*†
ATC Technology Corp.*†
Blue Nile, Inc.*†
Ambassadors International*†
Retail Ventures, Inc.*
NexCen Brands, Inc.*†
Citi Trends, Inc.*
Finish Line, Inc. — Class A*†
Salem Communications
Corp. — Class A
Build-A-Bear Workshop, Inc.*
Benihana, Inc.*
The Wet Seal, Inc. —
Class A*†
Meritage Homes Corp.*
Tempur-Pedic
ENERGY 8.0%
Alpha Natural
Resources, Inc.*†
PetroHawk Energy Corp.*†
Whiting Petroleum Corp.*
Comstock Resources, Inc.*
Atwood Oceanics, Inc.*
Penn Virginia Corp.
Mariner Energy, Inc.*†
Oil States International, Inc.*†
EXCO Resources, Inc.*†
Swift Energy Co.*†
Carrizo Oil & Gas, Inc.*
Rosetta Resources, Inc.*
Atlas America, Inc.
IHS, Inc.*†
Grey Wolf, Inc.*
Hornbeck Offshore
Services, Inc.*†
Willbros Group, Inc.*†
Crosstex Energy, Inc.†
Hercules Offshore*†
THE
RYDEX
95
$
1,283
160
1,123
218
120
220
30
100
40
20
185
160
1,220
30
78
1,088
1,050
1,049
981
973
931
850
810
736
683
680
679
343
90
70
676
654
444
70
22
97
40
16
334
334
328
303
198
20
156
1,294,924
740
1,520
500
592
660
337
550
1,090
630
930
460
430
347
820
510
330
2,480
700
77,175
70,391
53,040
49,982
49,625
41,903
41,481
40,297
39,967
34,326
32,885
28,406
23,627
23,370
22,975
22,968
22,394
22,050
390
476
600
544
22,039
20,854
20,796
20,683
| 61
June 30, 2008
®
MARKET
VALUE
SHARES
Complete Production
Services, Inc.*†
Pioneer Drilling Co.*†
McMoRan Exploration Co.*†
Clayton Williams
Energy, Inc.*†
W-H Energy Services, Inc.*
Warren Resources, Inc.*
Nordic American
Tanker Shipping†
Stone Energy Corp.*†
PHI, Inc.*
Matrix Service Co.*†
Contango Oil & Gas Co.*
Trico Marine Services, Inc.*†
Gulfport Energy Corp.*†
Arena Resources, Inc.*†
World Fuel Services Corp.†
Harvest Natural
Resources, Inc.*†
Berry Petroleum Co. —
Class A
Bois d’Arc Energy, Inc.*
Petroquest Energy, Inc.*†
Gulf Island Fabrication, Inc.†
ATP Oil & Gas Corp.*†
TXCO Resources, Inc.*
GulfMark Offshore, Inc.*
Newpark Resources, Inc.*
Bill Barrett Corp.*†
Allis-Chalmers Energy, Inc.*†
Vaalco Energy, Inc.*
Dril-Quip, Inc.*
BPZ Resources, Inc.*†
Parallel Petroleum Corp.*†
Petroleum Development Corp.*
Oilsands Quest, Inc.*†
Delta Petroleum Corp.*†
General Maritime Corp.†
GeoMet, Inc.*
International Coal Group, Inc.*†
ION Geophysical Corp.*†
Geokinetics, Inc.*
USEC, Inc.*†
Lufkin Industries, Inc.
T-3 Energy Services, Inc. —
Class A*
Uranium Resources, Inc.*†
Bristow Group, Inc.*†
Pacific Ethanol, Inc.*†
CARBO Ceramics, Inc.†
Union Drilling, Inc.*
Double Hull Tankers, Inc.
62 |
THE
RYDEX
540
1,000
680
$
19,667
18,810
18,714
170
190
1,200
18,691
18,191
17,616
377
220
360
606
150
380
840
258
620
14,635
14,500
14,461
13,974
13,938
13,840
13,835
13,628
13,603
1,190
13,161
220
530
420
230
280
880
170
1,230
150
500
980
125
260
370
110
1,090
247
200
500
360
240
230
660
40
12,954
12,884
11,298
11,254
11,052
10,349
9,891
9,668
8,911
8,900
8,301
7,875
7,644
7,448
7,314
7,085
6,303
5,196
4,740
4,698
4,188
4,165
4,013
3,331
40
790
40
1,070
20
50
100
3,179
2,915
1,980
1,937
1,167
1,084
1,003
MARKET
VALUE
SHARES
Ship Finance International
Ltd.†
Parker Drilling Co.*†
Energy Partners Ltd.*
NATCO Group, Inc.*†
VeraSun Energy Corp.*†
Evergreen Energy Inc.*
Total Energy
MATERIALS 4.1%
Olin Corp.†
Greif, Inc. — Class A†
Compass Minerals
Minerals Technologies, Inc.†
AptarGroup, Inc.†
Schnitzer Steel Industries,
Inc. — Class A
Olympic Steel, Inc.†
Texas Industries, Inc.†
NewMarket Corp.†
Ferro Corp.†
Kaiser Aluminum Corp.†
PolyOne Corp.*
Glatfelter
Stepan Co.
Hercules, Inc.†
Century Aluminum Co.*†
Wausau Paper Corp.
OM Group, Inc.*†
Koppers Holdings, Inc.
Coeur d’Alene Mines Corp.*†
Neenah Paper, Inc.
Schweitzer-Mauduit
International, Inc.
Brush Engineered
Materials, Inc.*
W.R. Grace & Co.*†
Calgon Carbon Corp.*†
Buckeye Technologies, Inc.*
Innospec, Inc.†
Myers Industries, Inc.
Silgan Holdings, Inc.†
Spartech Corp.
LSB Industries, Inc.*†
Rockwood Holdings, Inc.*†
30
80
40
10
96
77
$
886
801
597
545
396
134
1,238,584
577
1,040
1,110
450
88,166
51,324
29,060
28,813
355
1,080
310
466
28,599
22,140
19,713
19,549
160
240
320
570
256
900
280
650
2,020
1,020
1,140
270
693
170
1,450
340
260
3,440
570
18,336
18,221
17,962
17,094
16,955
16,884
14,988
14,969
14,079
13,780
13,418
12,317
11,732
11,303
11,179
11,149
10,886
9,976
9,525
560
9,436
330
340
480
830
320
716
90
160
460
200
105
8,059
7,987
7,421
7,022
6,022
5,835
4,567
4,506
4,338
3,960
3,654
June 30, 2008
®
MARKET
VALUE
SHARES
H.B. Fuller Co.†
Hecla Mining Co.*†
Amcol International Corp.
RTI International Metals, Inc.*
A.M. Castle & Co.
Flotek Industries, Inc.*†
ShengdaTech, Inc.*†
Total Materials
Flowers Foods, Inc.†
Central European
Distribution Corp.*†
Longs Drug Stores Corp.
Casey’s General Stores, Inc.
Universal Corp.†
Fresh Del Monte
Produce, Inc.*
Spartan Stores, Inc.
Winn-Dixie Stores, Inc.*†
Darling International, Inc.*†
Sanderson Farms, Inc.†
Cal-Maine Foods, Inc.†
Nash Finch Co.†
Alliance One
Ingles Markets, Inc. — Class A
Pilgrim’s Pride Corp.†
Farmer Brothers Co.†
Pantry, Inc.*
Village Super Market
J&J Snack Foods Corp.†
Central Garden and Pet Co. —
Class A*
Ruddick Corp.†
Ralcorp Holdings, Inc.*†
Reddy Ice Holdings, Inc.†
Roasters, Inc.*†
Jones Soda Co.*†
Chattem, Inc.*†
Synutra International, Inc.*†
American Oriental
Bioengineering, Inc.*
Hain Celestial Group, Inc.*
Chiquita Brands
MGP Ingredients, Inc.
American Dairy, Inc.*
160
300
80
30
30
10
70
20
$
3,590
2,778
2,277
1,069
858
206
203
199
636,104
1,070
30,324
340
500
860
400
25,211
21,055
19,926
18,088
580
590
827
770
360
370
350
13,671
13,570
13,249
12,720
12,427
12,206
11,994
2,330
466
740
440
860
200
230
11,906
10,872
9,613
9,306
9,168
7,716
6,304
1,500
146
100
257
6,150
5,009
4,944
3,516
80
827
30
40
3,006
2,663
1,951
1,293
130
50
1,283
1,174
30
30
9
455
174
71
301,015
MARKET
VALUE
SHARES
UTILITIES 1.7%
Nicor, Inc.†
647
Cleco Corp.†
920
Aquila, Inc.*
5,170
600
NorthWestern Corp.
730
Laclede Group, Inc.
430
ITC Holdings Corp.
310
520
Mge Energy, Inc.
460
390
595
450
320
Service Corp.
497
750
WGL Holdings, Inc.
218
IDACORP, Inc.†
150
Black Hills Corp.
118
Southwest Gas Corp.†
120
Northwest Natural Gas Co.
70
South Jersey Industries, Inc.†
65
Allete, Inc.†
50
Avista Corp.†
96
El Paso Electric Co.*†
40
Total Utilities
tw telecom Inc.*
1,860
Premiere Global
Services, Inc.*
1,210
NTELOS Holdings Corp.
580
Cincinnati Bell, Inc.*†
3,620
iPCS, Inc. — Class A*
460
Cogent Communications
Group, Inc.*†
957
Consolidated Communications
Holdings, Inc.†
860
Syniverse Holdings, Inc.*†
650
Shenandoah
Telecommunications Co.
780
Cbeyond, Inc.*†
526
Alaska Communications
Systems Group, Inc.†
640
PAETEC Holding Corp.*†
1,130
SureWest Communications
760
Rural Cellular Corp. —
Class A*†
50
General Communication, Inc. —
Class A*
100
Virgin Mobile USA, Inc. —
Class A*†
128
THE
RYDEX
$
27,556
21,464
19,491
18,606
18,557
17,359
15,844
15,293
15,005
13,872
12,798
11,772
10,448
9,627
8,970
7,573
4,334
3,783
3,568
3,238
2,428
2,100
2,060
803
266,549
29,816
17,642
14,714
14,408
13,630
12,824
12,805
10,530
10,156
8,426
7,642
7,175
6,407
2,225
687
352
169,439
| 63
June 30, 2008
®
MARKET
VALUE
SHARES
Total Common Stocks
(Cost $10,027,086)
Lending Trust Prime
Portfolio (Note 9)
4,469,293
(Cost $4,469,293)
(Cost $14,496,379)
$ 265,841
$15,432,131
CONTRACTS
UNREALIZED
LOSS
September 2008 Russell 2000
57
$10,696,997
4,469,293
4,469,293
$15,166,290
$ (258,165)
UNITS
June 2008 Russell 2000 Index
$1,074,876)
1,559
$7,564,812)
10,969
$8,639,688)
$
(24,606)
(444,893)
$ (469,499)
64 |
THE
RYDEX
(Unaudited)
June 30, 2008
INVERSE RUSSELL 2000 STRATEGY FUND
®
FACE
AMOUNT
MARKET
VALUE
2.02% due 07/01/08
$1,000,000
$ 1,000,000
2.04% due 07/02/08
1,000,000
999,943
(Cost $1,999,943)
1,999,943
issued 06/30/08 at 1.75%
due 07/01/08
1,659,440
issued 06/30/08 at 1.74%
due 07/01/08
1,659,440
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
1,659,440
issued 06/30/08 at 0.25%
due 07/01/08
1,643,451
(Cost $6,621,771)
(Cost $8,621,714)
$ 1,665,969
$10,287,683
CONTRACTS
UNREALIZED
GAIN
September 2008 Russell 2000 Index
of Contracts $344,950)
5
1,659,440
UNREALIZED
GAIN
UNITS
SOLD SHORT
June 2008 Russell 2000 Index
$8,653,370)
12,547
$1,230,726)
1,785
Value $9,884,096)
$
724,149
72,570
$
796,719
1,659,440
1,659,440
1,643,451
6,621,771
$ 8,621,714
$
80
U.S. Government.
THE
RYDEX
| 65
(Unaudited)
June 30, 2008
GOVERNMENT LONG BOND 1.2x STRATEGY FUND
FACE
AMOUNT
MARKET
VALUE
2.08% due 07/02/08
$ 4,000,000
$ 3,999,769
Fannie Mae*
2.10% due 07/07/08
4,000,000
3,998,600
2.02% due 07/01/08
3,000,000
3,000,000
Farmer Mac*
2.00% due 07/01/08
3,000,000
3,000,000
(Cost $13,998,369)
13,998,369
U.S. TREASURY OBLIGATIONS 40.3%
U.S. Treasury Bond
4.38% due 02/15/38
25,381,000
Total U.S. Treasury Obligations
(Cost $23,823,625)
24,809,927
24,809,927
issued 06/30/08 at 1.75%
due 07/01/08
5,031,758
issued 06/30/08 at 1.74%
due 07/01/08
5,031,758
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
5,031,758
issued 06/30/08 at 0.25%
due 07/01/08
4,983,277
(Cost $20,078,551)
(Cost $57,900,545)
$ 2,738,266
$61,625,113
CONTRACTS
UNREALIZED
GAIN
September 2008 U.S. Treasury Bond
Futures Contracts
642
5,031,758
5,031,758
5,031,758
4,983,277
20,078,551
$58,886,847
$ 1,276,039
U.S. Government.
66 |
THE
RYDEX
(Unaudited)
June 30, 2008
INVERSE GOVERNMENT LONG BOND STRATEGY FUND
FACE
AMOUNT
MARKET
VALUE
Farmer Mac*
2.00% due 07/01/08
$2,000,000
$ 2,000,000
2.02% due 07/01/08
1,000,000
1,000,000
(Cost $3,000,000)
3,000,000
CONTRACTS
OPTIONS PURCHASED
Call Options on:
September 2008 U.S. Treasury
Bond Index Futures Contracts
Expiring September 2008
with strike price of 140†
Bond Index Futures Contracts
Expiring September 2008
with strike price of 134†
Total Options Purchased
(Cost $1,499)
45
40
FACE
AMOUNT
Total Long Securities 160.6%
(Cost $26,387,044)
—
$26,385,545
U.S. TREASURY OBLIGATIONS
SOLD SHORT (23.3)%
U.S. Treasury Bond
4.38% due 02/15/38
$3,908,000
Total U.S. Treasury Obligations
Sold Short
(Proceeds $3,957,195)
$ (6,136,637)
$16,428,838
CONTRACTS
UNREALIZED
LOSS
—
—
MARKET
VALUE
Bond Futures Contracts
168
(3,820,070)
(3,820,070)
$
(307,540)
FACE
AMOUNT
Joint Repurchase Agreement (Note 5)
issued 06/30/08 at 1.75%
due 07/01/08
$4,130,084
issued 06/30/08 at 1.74%
due 07/01/08
4,130,084
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
4,130,084
issued 06/30/08 at 0.25%
due 07/01/08
4,090,293
Individual Repurchase Agreement††
issued 06/30/08 at 1.50% due
07/01/08 (Secured by a U.S.
Treasury Bond, at a rate of
4.38% and maturing 02/15/38
as collateral, with a Market
Value of $7,044,933) to be
repurchased at $6,905,288
6,905,000
(Cost $23,385,545)
4,130,084
4,130,084
4,130,084
4,090,293
6,905,000
23,385,545
U.S. Government.
† Security is fair valued.
†† All or a portion of this security is pledged as short security collateral at June 30, 2008.
THE
RYDEX
| 67
(Unaudited)
June 30, 2008
SHARES
MARKET
VALUE
COMMON STOCKS 85.9%
FINANCIALS 21.3%
HSBC Holdings PLC — SP ADR†
14,238
Banco Santander Central
Hispano SA — SP ADR†
41,660
Banco Bilbao Vizcaya
Argentaria SA — SP ADR†
29,750
AXA — SP ADR†
18,250
Allianz SE — SP ADR†
30,064
Credit Suisse Group AG —
SP ADR†
10,950
ING Groep NV — SP ADR†
14,850
UBS AG — SP ADR*†
22,671
Deutsche Bank AG — SP ADR†
5,430
Lloyds TSB Group PLC —
SP ADR†
16,830
Barclays PLC — SP ADR†
16,370
Willis Group Holdings Ltd.†
7,560
Allied Irish Banks PLC —
SP ADR
6,320
Total Financials
ENERGY 15.5%
Total SA — SP ADR†
17,770
BP PLC — SP ADR†
20,669
Royal Dutch Shell PLC —
SP ADR
11,885
Eni SpA — SP ADR
11,930
Total Energy
HEALTH CARE 13.3%
Novartis AG — SP ADR
21,630
GlaxoSmithKline PLC —
SP ADR†
24,090
AstraZeneca PLC —
SP ADR†
16,130
Sanofi-Aventis — SP ADR
20,300
Novo Nordisk A/S —
SP ADR†
2,940
Alcon, Inc. — SP ADR
970
Teva Pharmaceutical
3,040
Total Health Care
Vodafone Group PLC —
SP ADR
37,374
Telefonica SA — SP ADR†
12,320
France Telecom SA — SP ADR
21,310
Deutsche Telekom AG —
SP ADR†
35,841
BT Group PLC — SP ADR
11,460
68 |
THE
RYDEX
$ 1,092,055
757,795
564,357
536,915
524,617
496,144
468,517
468,373
463,451
415,196
378,966
237,157
194,593
6,598,136
1,515,248
1,437,942
971,123
885,564
4,809,877
1,190,515
1,065,260
686,009
674,569
194,040
157,906
139,232
4,107,531
1,101,038
980,426
631,415
MARKET
VALUE
SHARES
MATERIALS 8.9%
Rio Tinto PLC — SP ADR†
1,690
Anglo American PLC —
SP ADR†
18,250
BHP Billiton Ltd. — SP ADR†
6,640
ArcelorMittal†
5,609
Syngenta AG — SP ADR†
2,390
Total Materials
Diageo PLC — SP ADR†
7,650
Unilever NV
18,845
British American Tobacco
PLC — SP ADR†
3,770
Cadbury PLC — SP ADR
3,090
INDUSTRIALS 4.4%
Siemens AG — SP ADR†
6,360
Koninklijke Philips
Electronics NV— SP ADR
9,890
DryShips Inc.†
2,260
SP ADR*†
4,800
Total Industrials
Nokia Oyj — SP ADR†
28,050
SAP AG — SP ADR†
6,190
Telefonaktiebolaget
LM Ericsson — SP ADR†
19,830
Daimler AG — SP ADR†
6,210
UTILITIES 0.4%
Veolia Environnement —
SP ADR
2,210
Total Utilities
Total Common Stocks
(Cost $23,899,445)
Lending Trust Prime
Portfolio (Note 9)
10,543,611
(Cost $10,543,611)
$
836,550
646,962
565,662
555,684
154,633
2,759,491
565,105
535,198
261,073
155,489
1,516,865
700,427
334,282
181,207
137,616
1,353,532
687,225
322,561
206,232
1,216,018
382,971
382,971
123,428
123,428
26,622,751
10,543,611
10,543,611
586,717
455,306
3,754,902
June 30, 2008
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08††
$473,772
(Cost $473,772)
(Cost $34,916,828)
MARKET
VALUE
Country Diversification
$
September 2008 Dow Jones Euro
STOXX 50 Futures Contracts
(Aggregate Market Value of
Contracts $5,933,976)
473,772
473,772
SPAIN
9%
$37,640,134
$ (6,657,549)
$30,982,585
SWITZERLAND
10%
GREAT
BRITAIN
37%
UNREALIZED
GAIN (LOSS)
CONTRACTS
FOREIGN CURRENCY FUTURES
CONTRACTS PURCHASED
September 2008 EURO Currency
Futures Contracts
SWEDEN
1%
FINLAND
IRELAND
1%
ITALY 3%
5%
FRANCE
10%
NETHERLANDS
12%
30
$
112
119,206
GERMANY
12%
The pie chart above reflects percentages of
the market value of Common Stocks.
(311,756)
UNITS
June 2008 Dow Jones
STOXX 50 Index Swap,
$2,262,906)
September 2008 Dow Jones
STOXX 50 Index Swap,
$3,126,786)
$5,389,692)
*
**
†
††
496
$
686
(27,226)
(45,694)
$
(72,920)
Total Return based on Dow Jones STOXX 50 Index +/- financing at a variable rate.
THE
RYDEX
| 69
(Unaudited)
June 30, 2008
FACE
AMOUNT
MARKET
VALUE
1,000,000
FOREIGN CURRENCY FUTURES
CONTRACTS PURCHASED
September 2008 Japanese Yen
Futures Contracts
110
$
193,204
3,689,485
September 2008 Nikkei 225 Index
Futures Contracts
195
$
(569,338)
$
(122,504)
Farmer Mac*
2.00% due 07/01/08
$1,000,000
(Cost $1,000,000)
issued 06/30/08 at 0.25%
due 07/01/08†
3,689,485
issued 06/30/08 at 1.75%
due 07/01/08
2,961,717
issued 06/30/08 at 1.74%
due 07/01/08
2,961,717
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
2,961,717
(Cost $12,574,636)
(Cost $13,574,636)
UNREALIZED
GAIN (LOSS)
CONTRACTS
$ 1,000,000
UNITS
2,961,717
2,961,717
2,961,717
September 2008 Topix 100 Index
$3,836,965)
419,847
12,574,636
$13,574,636
$
(37,842)
$13,536,794
U.S. Government.
** Total Return based on Topix 100 Index +/- financing at a variable rate.
70 |
THE
RYDEX
(Unaudited)
June 30, 2008
SHARES
MARKET
VALUE
SHARES
$ 1,212,862
1,143,364
1,079,780
1,013,854
438,517
4,888,377
16,426
AT&T, Inc.
16,430
Total Common Stocks
(Cost $22,607,423)
Lending Trust Prime
Portfolio (Note 9)
2,989,260
(Cost $2,989,260)
COMMON STOCKS 76.1%
INDUSTRIALS 16.2%
16,430
3M Co.
16,430
Boeing Co.
16,430
16,432
16,430
Total Industrials
Machines Corp.
16,430
Hewlett-Packard Co.
16,430
Microsoft Corp.
16,430
Intel Corp.
16,430
ENERGY 10.2%
Chevron Corp.
16,430
Exxon Mobil Corp.
16,430
Total Energy
16,428
Wal-Mart Stores, Inc.
16,430
Coca-Cola Co.
16,430
FINANCIALS 7.6%
American Express Co.
16,430
16,429
Group, Inc.
16,430
16,430
Citigroup, Inc.†
16,433
Total Financials
McDonald’s Corp.
16,430
Walt Disney Co.†
16,430
Home Depot, Inc.†
16,430
16,430
HEALTH CARE 6.5%
16,430
Merck & Co., Inc.
16,430
Pfizer, Inc.†
16,430
Total Health Care
MATERIALS 4.3%
E.I. du Pont de Nemours and
Co.†
16,430
Alcoa, Inc.
16,430
Total Materials
1,947,448
726,370
451,989
352,917
3,478,724
1,628,706
1,447,976
3,076,682
998,987
923,366
854,031
2,776,384
618,918
563,679
434,738
392,184
275,417
2,284,936
923,694
512,616
384,791
188,945
2,010,046
1,057,106
619,247
287,032
1,963,385
MARKET
VALUE
$
581,480
553,527
1,135,007
22,903,460
2,989,260
2,989,260
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08††
$1,862,673
(Cost $1,862,673)
(Cost $27,459,356)
$ 2,356,785
$30,112,178
CONTRACTS
UNREALIZED
LOSS
Industrial Average Index
478
1,862,673
1,862,673
$27,755,393
$ (1,480,093)
UNITS
Industrial Average Index Swap,
Terminating 09/16/08*
$10,297,088)
907
$
(506,754)
704,683
585,236
1,289,919
* Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.
†† All or a portion of this security is pledged as equity index swap collateral at June 30, 2008.
THE
RYDEX
| 71
(Unaudited)
June 30, 2008
FACE
AMOUNT
MARKET
VALUE
2.02% due 07/01/08
$1,000,000
(Cost $1,000,000)
issued 06/30/08 at 0.25%
due 07/01/08†
5,915,119
issued 06/30/08 at 1.75%
due 07/01/08
2,264,502
issued 06/30/08 at 1.74%
due 07/01/08
2,264,502
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
2,264,502
(Cost $12,708,625)
(Cost $13,708,625)
$ 1,000,000
1,000,000
UNREALIZED
GAIN
CONTRACTS
Industrial Average Index
122
$
1,036
UNITS
5,915,119
2,264,502
SOLD SHORT
Industrial Average Index Swap,
$34,157,836)
3,009
$ 2,712,771
2,264,502
2,264,502
12,708,625
$13,708,625
$ 6,802,075
$20,510,700
U.S. Government.
** Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.
72 |
THE
RYDEX
(Unaudited)
June 30, 2008
MARKET
VALUE
SHARES
COMMON STOCKS 99.1%
Finish Line, Inc. — Class A*†
44,940
Bassett Furniture
Industries, Inc.
14,593
6,675
Stein Mart, Inc.†
32,572
Standard Motor
Products, Inc.†
17,456
La-Z-Boy, Inc.†
18,522
M/I Homes, Inc.†
8,413
12,868
OfficeMax Inc.†
6,910
4,433
Tuesday Morning Corp.*†
20,820
Fred’s, Inc.†
7,373
PEP Boys-Manny Moe
& Jack†
9,142
National Presto Industries, Inc.
1,219
Nautilus, Inc.†
14,430
5,243
Superior Industries
3,913
Triarc Cos., Inc. — Class B
10,283
Brunswick Corp.†
6,080
Oxford Industries, Inc.†
3,360
Arctic Cat, Inc.†
7,977
Zale Corp.*†
3,280
Cato Corp. — Class A†
4,280
Ruby Tuesday, Inc.
9,860
Lithia Motors, Inc. — Class A†
10,551
Brown Shoe Co., Inc.†
3,610
O’Charleys, Inc.†
4,839
Landry’s Restaurants, Inc.†
2,533
3,450
MarineMax, Inc.*†
4,840
Monaco Coach Corp.
11,026
1,127
2,684
CPI Corp.
1,200
Libbey, Inc.
2,882
CKE Restaurants, Inc.
1,460
Steak n Shake Co.*†
2,662
Cabela’s, Inc. — Class A*†
1,460
2,120
FINANCIALS 24.0%
Stewart Information
Services Corp.†
5,545
LandAmerica Financial
Group, Inc.†
4,810
Colonial Properties Trust†
4,590
SWS Group, Inc.†
5,416
$
390,978
172,197
153,725
146,900
142,441
141,693
132,337
129,195
96,049
88,084
85,570
82,873
79,718
78,235
73,304
67,582
66,052
65,091
64,448
64,344
62,620
61,959
60,947
53,244
51,911
48,916
48,680
45,518
36,501
34,703
33,519
27,724
26,357
22,476
21,442
18,206
16,851
16,075
16,048
3,024,513
107,240
106,734
91,892
89,960
MARKET
VALUE
SHARES
Safety Insurance Group, Inc.
Pennsylvania Real Estate
Investment Trust
Flagstar Bancorp, Inc.†
BioMed Realty Trust, Inc.†
Medical Properties Trust Inc.†
Corus Bankshares, Inc.†
Central Pacific Financial
Corp.†
Susquehanna
Bancshares, Inc.†
Community Bank
System, Inc.†
First Commonwealth
Financial Corp.†
National Retail
Properties, Inc.†
Sterling Bancorp
First Financial Bancorp†
BankAtlantic Bancorp,
Inc. — Class A†
Entertainment Properties
Trust†
Senior Housing
Properties Trust†
Dime Community Bancshares†
Inland Real Estate Corp.†
National Penn
Bancshares, Inc.†
DiamondRock
Hospitality Co.†
Selective Insurance
Group, Inc.†
Brookline Bancorp, Inc.†
Financial Federal Corp.†
Bank Mutual Corp.
Whitney Holding Corp.†
THE
RYDEX
13,937
1,951
$
88,361
69,553
2,786
20,022
64,468
60,266
1,145
2,343
4,540
1,612
5,210
12,310
3,670
3,025
949
58,441
57,474
55,070
54,373
52,725
51,210
50,022
46,645
45,609
4,122
43,940
3,199
43,794
2,007
948
2,757
41,384
39,399
39,315
4,121
38,449
1,832
2,976
3,081
3,985
38,289
37,200
36,818
36,662
20,540
36,150
722
35,696
1,803
2,079
1,336
8,259
2,215
35,213
34,324
34,148
33,036
31,940
2,381
31,620
2,902
31,603
1,666
2,792
1,210
2,637
5,060
1,427
900
8,810
381
2,808
31,254
26,664
26,572
26,475
26,363
26,114
24,237
23,699
19,660
17,915
| 73
June 30, 2008
MARKET
VALUE
SHARES
TrustCo Bank Corp.
Guaranty Financial
Group, Inc.*†
FirstFed Financial Corp.*†
Anchor BanCorp
Wisconsin, Inc.
Downey Financial Corp.†
Total Financials
INDUSTRIALS 15.4%
Universal Forest
Products, Inc.†
Angelica Corp.
Volt Information
Sciences, Inc.*†
Standard Register Co.
Spherion Corp.*
Watsco, Inc.†
Lydall, Inc.*
Applied Signal
Technology, Inc.
Griffon Corp.*†
Building Material Holding
Corp.†
A.O. Smith Corp.†
Tredegar Corp.
CDI Corp.†
C&D Technologies, Inc.*†
Lawson Products, Inc.
Insituform Technologies,
Inc. — Class A*†
United Stationers, Inc.*†
Total Industrials
UTILITIES 7.7%
Atmos Energy Corp.†
Laclede Group, Inc.
Southwest Gas Corp.†
Avista Corp.
Allete, Inc.†
UGI Corp.†
74 |
THE
RYDEX
2,394
674
3,510
$
17,763
15,468
13,759
2,310
617
1,320
2,422
12,405
11,507
10,613
10,027
830
1,802
5,818
4,992
2,200,328
4,275
18,390
4,595
5,068
156,636
139,028
95,300
80,936
2,537
3,492
76,009
74,275
5,639
7,058
2,565
12,129
1,330
3,765
67,160
66,557
57,071
56,036
55,594
47,251
3,455
5,280
47,195
46,253
23,906
1,213
2,644
1,503
4,207
950
2,507
902
840
42,314
39,823
38,867
38,236
35,591
34,894
31,789
29,044
20,815
1,310
449
19,951
16,591
1,413,216
3,872
2,259
2,144
1,668
2,339
1,035
1,486
1,367
1,109
106,751
91,196
63,741
59,331
50,195
43,470
42,663
42,391
36,209
MARKET
VALUE
SHARES
1,191
1,301
Cleco Corp.†
1,216
Service Corp.
1,403
Southern Union Co.†
890
Northwest Natural Gas Co.†
467
Total Utilities
MATERIALS 6.8%
PolyOne Corp.*
13,052
Quaker Chemical Corp.
2,653
2,337
2,870
Wausau Paper Corp.
8,266
20,642
Chesapeake Corp.*
20,609
Tronox, Inc.
14,969
A.M. Castle & Co.†
1,250
Material Sciences Corp.*
3,881
Schweitzer-Mauduit
International, Inc.
1,202
Omnova Solutions, Inc.*
5,553
Total Materials
SYNNEX Corp.*†
5,404
Gevity HR, Inc.
19,308
Ciber, Inc.*
6,469
CTS Corp.†
3,488
4,750
Park Electrochemical Corp.†
1,203
Insight Enterprises, Inc.*
2,493
2,560
1,700
Ditech Networks, Inc.*
10,092
Black Box Corp.
750
Rudolph Technologies, Inc.*†
2,490
Symmetricom, Inc.*
4,910
Methode Electronics,
Inc. — Class A
1,626
Nash Finch Co.†
2,685
Alliance One
15,266
Central Garden and
Pet Co. — Class A*†
18,197
Spartan Stores, Inc.†
2,849
Lance, Inc.†
1,109
Longs Drug Stores Corp.†
451
Spectrum Brands, Inc.*†
6,855
Great Atlantic & Pacific
Tea Company, Inc*†
710
$
35,027
34,034
28,369
27,176
24,048
21,603
706,204
90,972
70,729
70,087
66,096
63,731
59,862
48,431
45,206
35,763
31,436
20,254
15,437
618,004
135,586
103,877
40,172
35,054
33,440
29,245
29,243
29,133
27,778
21,698
20,393
19,173
18,854
16,992
560,638
92,015
78,009
74,608
65,527
20,816
18,992
17,480
16,202
383,649
June 30, 2008
MARKET
VALUE
SHARES
HEALTH CARE 1.8%
923
Cambrex Corp.*
7,030
Datascope Corp.
772
Medcath Corp.*
1,228
Gentiva Health
Services, Inc.*†
999
Total Health Care
Total Common Stocks
(Cost $9,142,127)
Lending Trust Prime
Portfolio (Note 9)
5,149,458
(Cost $5,149,458)
$
42,172
41,266
36,284
22,079
19,031
160,832
9,067,384
5,149,458
5,149,458
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08
$55,414
(Cost $55,414)
(Cost $14,346,999)
55,414
55,414
$14,272,256
$ (5,123,551)
$ 9,148,705
THE
RYDEX
| 75
(Unaudited)
June 30, 2008
MID-CAP VALUE FUND
MARKET
VALUE
SHARES
COMMON STOCKS 99.6%
FINANCIALS 27.0%
Fidelity National Financial,
Inc. — Class A†
First American Corp.†
Old Republic
International Corp.†
Group, Inc.
Mack-Cali Realty Corp.†
Liberty Property Trust
Protective Life Corp.
AmeriCredit Corp.*†
Hospitality Properties Trust†
New York Community
Bancorp, Inc.†
Mercury General Corp.†
American Financial
Group, Inc.
Health Care REIT, Inc.†
Duke Realty Corp.†
Nationwide Health
Properties, Inc.
Camden Property Trust†
UDR, Inc.†
FirstMerit Corp.†
Cousins Properties, Inc.†
Associated Banc-Corp.†
TCF Financial Corp.†
Unitrin, Inc.
Webster Financial Corp.†
Hanover Insurance
Group, Inc.†
Weingarten Realty Investors
Arthur J. Gallagher & Co.†
Equity One, Inc.†
Astoria Financial Corp.†
Everest Re Group Ltd.
BRE Properties,
Inc. — Class A†
Horace Mann Educators Corp.
Washington Federal, Inc.†
Colonial BancGroup, Inc.†
Wilmington Trust Corp.†
PacWest Bancorp†
The PMI Group, Inc.†
Total Financials
76 |
THE
RYDEX
18,005
5,638
$
226,864
148,843
10,937
129,494
9,776
3,927
3,382
3,436
2,769
12,212
3,825
125,719
123,386
115,563
113,903
105,360
105,267
93,560
5,130
1,925
91,519
89,936
3,198
1,676
3,311
85,547
74,582
74,332
2,298
1,633
3,038
4,110
2,796
3,267
5,226
2,224
3,293
72,364
72,277
67,990
67,034
64,588
63,020
62,869
61,316
61,250
1,416
1,938
2,424
2,642
2,589
580
60,180
58,760
58,418
54,293
51,987
46,232
1,068
2,006
3,222
2,387
9,085
1,313
2,380
1,460
9,910
46,223
45,657
45,172
43,205
40,156
34,716
34,105
21,725
19,325
2,956,737
MARKET
VALUE
SHARES
Furniture Brands
28,845
28,132
Foot Locker, Inc.
16,017
43,429
Ryland Group, Inc.†
8,478
8,380
Media General, Inc.†
10,710
9,916
17,288
Corp.†
11,647
Lee Enterprises, Inc.†
19,321
2,592
Lear Corp.*
4,703
5,670
Regis Corp.
2,390
Belo Corp. — Class A†
8,075
1,870
Barnes & Noble, Inc.†
1,728
5,640
Boyd Gaming Corp.†
1,231
UTILITIES 14.6%
Energy East Corp.
5,476
Hawaiian Electric
Industries, Inc.†
5,336
Vectren Corp.†
4,190
3,675
Oneok, Inc.
2,504
Great Plains Energy, Inc.
4,668
AGL Resources, Inc.
2,923
7,471
3,995
SCANA Corp.
2,300
OGE Energy Corp.
2,294
NSTAR†
2,076
Puget Energy, Inc.
2,818
Alliant Energy Corp.
1,945
IDACORP, Inc.†
2,196
Black Hills Corp.†
1,755
Aquila, Inc.*
11,420
Sierra Pacific Resources
2,719
Total Utilities
INDUSTRIALS 13.2%
Kelly Services, Inc. — Class A
12,991
YRC Worldwide, Inc.*†
15,816
12,600
Avis Budget Group, Inc.*†
16,662
GATX Corp.
2,440
$
385,369
351,087
199,412
199,339
184,905
172,377
127,984
122,661
103,728
81,762
77,091
74,131
66,689
65,942
62,977
59,028
53,594
42,924
37,224
15,461
2,483,685
135,367
131,959
130,770
127,670
122,270
118,007
101,077
89,353
85,933
85,100
72,743
70,210
67,604
66,636
63,442
56,265
43,053
34,559
1,602,018
251,116
235,184
151,200
139,461
108,165
June 30, 2008
MID-CAP VALUE FUND
MARKET
VALUE
SHARES
Trinity Industries, Inc.†
2,960
5,407
Manpower, Inc.
1,422
United Rentals, Inc.*
3,926
Timken Co.†
2,143
Werner Enterprises, Inc.†
3,721
Teleflex, Inc.
724
9,800
Total Industrials
Imation Corp.†
9,411
Ingram Micro, Inc. — Class A*
7,649
Palm, Inc.†
19,860
Acxiom Corp.
8,638
Tech Data Corp.*
2,796
Vishay Intertechnology, Inc.*
7,505
Diebold, Inc.
1,630
Arrow Electronics, Inc.*†
1,562
KEMET Corp.*†
12,648
MATERIALS 7.7%
Olin Corp.†
5,516
Chemtura Corp.
18,591
RPM International, Inc.†
5,127
4,717
Ferro Corp.
4,622
Louisiana-Pacific Corp.†
8,740
Sonoco Products Co.
2,003
Valspar Corp.†
3,163
1,543
Lubrizol Corp.
745
Cabot Corp.†
1,346
Total Materials
HEALTH CARE 4.3%
Health Management Associates,
29,256
Kindred Healthcare, Inc.*†
5,870
Omnicare, Inc.†
4,260
Total Health Care
Universal Corp.
2,593
Smithfield Foods, Inc.*
2,794
Ruddick Corp.†
1,176
J.M. Smucker Co.
963
Total Common Stocks
(Cost $11,260,201)
$
102,683
82,943
82,817
76,989
70,591
69,136
40,247
36,554
1,447,086
215,700
135,770
107,045
99,251
94,756
66,569
57,995
47,985
40,980
866,051
144,409
108,571
105,616
96,698
86,709
74,203
61,993
59,812
43,451
34,516
32,721
848,699
SHARES
MARKET
VALUE
Lending Trust Prime
Portfolio (Note 9)
4,733,265
(Cost $4,733,265)
$ 4,733,265
4,733,265
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08
$67,487
(Cost $67,487)
(Cost $16,060,953)
67,487
67,487
$15,728,288
$ (4,749,075)
$10,979,213
190,457
168,821
111,697
470,975
117,255
55,545
40,349
39,136
252,285
10,927,536
THE
RYDEX
| 77
(Unaudited)
June 30, 2008
MARKET
VALUE
SHARES
COMMON STOCKS 99.3%
FINANCIALS 28.0%
Freddie Mac†
Allstate Corp.†
Apartment Investment &
Management Co. —
Class A†
Marsh & McLennan Cos., Inc.†
Sovereign Bancorp, Inc.†
Travelers Cos, Inc.
American Capital
Strategies Ltd.*†
Citigroup, Inc.†
Comerica, Inc.†
BB&T Corp.†
HCP, Inc.†
Regions Financial Corp.†
Morgan Stanley†
KeyCorp†
CIT Group, Inc.†
Realty Corp.†
Class A
Marshall & Ilsley Corp.†
Wachovia Corp.†
Zions Bancorporation†
U.S. Bancorp†
Lincoln National Corp.
ACE Ltd.
XL Capital Ltd.†
SunTrust Banks, Inc.
Hartford Financial Services
Group, Inc.
M&T Bank Corp.†
General Growth
Properties, Inc.†
Chubb Corp.†
PNC Financial Services
Group, Inc.†
78 |
THE
RYDEX
89,540
12,850
4,379
$
281,156
210,740
199,639
5,410
33,931
4,318
5,810
20,740
3,417
184,265
167,280
165,250
154,256
152,646
148,298
6,064
8,376
5,440
5,989
4,075
3,694
16,976
11,474
5,236
3,461
11,189
17,883
144,141
140,382
139,427
136,370
129,626
126,741
126,132
125,181
124,983
124,838
122,855
121,783
3,276
113,710
6,304
7,230
4,321
6,847
3,330
21,571
17,791
3,660
2,169
1,743
4,657
6,986
2,607
2,440
112,274
110,836
109,753
106,334
104,862
102,894
102,654
102,077
98,299
96,022
95,748
95,359
94,426
92,744
1,384
1,184
3,431
89,365
83,519
81,486
2,295
2,393
1,544
80,394
75,882
75,671
1,237
70,633
MARKET
VALUE
SHARES
6,730
MBIA, Inc.†
15,010
Lehman Brothers
Holdings, Inc.†
1,332
Total Financials
KB HOME†
27,010
D.R. Horton, Inc.†
41,870
31,390
Jones Apparel Group, Inc.†
24,550
Dillard’s, Inc. — Class A†
27,219
23,311
New York Times Co. —
Class A†
14,646
Leggett & Platt, Inc.†
11,643
Centex Corp.†
13,180
Whirlpool Corp.†
2,784
Gannett Co., Inc.
7,770
CBS Corp.†
8,322
Big Lots, Inc.*†
5,130
Ford Motor Co.*†
31,551
Macy’s, Inc.†
7,739
Office Depot, Inc.*†
11,640
6,820
Time Warner, Inc.
6,806
J.C. Penney Co., Inc.†
2,638
Eastman Kodak Co.†
6,558
Liz Claiborne, Inc.†
5,580
Mattel, Inc.
4,290
Carnival Corp.†
1,887
UTILITIES 18.1%
Integrys Energy Group, Inc.†
7,498
NiSource, Inc.
19,710
DTE Energy Co.
6,707
TECO Energy, Inc.
12,980
Duke Energy Corp.
12,945
Nicor, Inc.†
5,197
Progress Energy, Inc.†
5,178
7,870
Pinnacle West Capital Corp.†
6,348
4,954
Xcel Energy, Inc.
8,403
Ameren Corp.†
3,469
8,759
Southern Co.†
3,252
PG&E Corp.
2,704
CMS Energy Corp.†
7,185
American Electric Power
Co., Inc.†
2,639
Dominion Resources, Inc.†
2,021
Total Utilities
$
68,511
65,894
26,387
5,481,723
457,279
454,289
387,353
337,562
314,924
233,576
225,402
195,253
176,217
171,856
168,376
162,196
160,261
151,760
150,291
127,342
114,917
100,729
95,733
94,632
78,957
73,445
62,196
4,494,546
381,123
353,203
284,645
278,940
224,984
221,340
216,596
201,866
195,328
193,652
168,648
146,496
140,582
113,560
107,322
107,057
106,167
95,977
3,537,486
June 30, 2008
MARKET
VALUE
SHARES
INDUSTRIALS 5.5%
Ryder System, Inc.†
5,729
3,990
Masco Corp.†
9,727
Allied Waste Industries, Inc.*
11,505
RR Donnelley & Sons Co.†
3,217
Avery Dennison Corp.†
1,570
994
Total Industrials
23,447
SUPERVALU, INC.†
8,177
Kroger Co.
4,644
Dean Foods Co.*†
5,420
Safeway, Inc.†
2,693
Reynolds American, Inc.†
1,635
MATERIALS 4.9%
Ashland, Inc.†
5,669
Weyerhaeuser Co.†
3,213
7,052
Dow Chemical Co.†
4,161
Bemis Co.†
5,513
MeadWestvaco Corp.
3,415
Total Materials
HEALTH CARE 4.5%
AmerisourceBergen Corp.
7,240
McKesson Corp.
2,424
24,296
Covidien Ltd.
2,434
2,249
Pfizer, Inc.†
5,234
Total Health Care
Embarq Corp.
3,429
Sprint Nextel Corp.†
15,580
Citizens Communications Co.†
12,759
Verizon Communications,
Inc.†
3,638
Windstream Corp.†
9,438
AT&T, Inc.
2,493
Jabil Circuit, Inc.
18,000
10,416
Micron Technology, Inc.*†
23,852
$
394,613
159,759
153,006
145,193
95,513
68,970
66,499
1,083,553
350,298
252,588
134,072
106,340
76,885
76,306
996,489
273,246
164,313
164,312
145,260
123,601
81,414
952,146
289,528
135,526
135,086
116,564
116,003
91,438
884,145
MARKET
VALUE
SHARES
ENERGY 2.8%
Spectra Energy Corp.†
18,974
Total Energy
Total Common Stocks
(Cost $21,185,158)
Lending Trust Prime
Portfolio (Note 9)
8,520,085
(Cost $8,520,085)
$
545,313
545,313
19,454,568
8,520,085
8,520,085
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08
$148,014
(Cost $148,014)
(Cost $29,853,257)
148,014
148,014
$28,122,667
$ (8,539,612)
$19,583,055
162,089
148,010
144,687
128,785
116,465
83,989
784,025
295,380
256,650
143,112
695,142
THE
RYDEX
| 79
(Unaudited)
June 30, 2008
MARKET
VALUE
SHARES
COMMON STOCKS 99.5%
PetMed Express, Inc.*†
9,363
Panera Bread Co. —
Class A*†
2,470
Volcom, Inc.*†
4,570
Coinstar, Inc.*†
3,325
Gymboree Corp.*
2,465
Meritage Homes Corp.*
6,471
Stage Stores, Inc.†
7,863
NutriSystem, Inc.†
6,050
Pool Corp.†
4,400
K-Swiss, Inc. — Class A†
5,295
Hibbett Sports Inc.*†
3,616
Papa John’s International,
Inc.*
2,805
Arbitron, Inc.
1,470
20,606
Pre-Paid Legal Services, Inc.*
1,659
Jos. A. Bank Clothiers, Inc.*†
2,447
Stamps.com, Inc.*
4,940
CEC Entertainment, Inc.*†
2,168
Zumiez, Inc.*†
3,650
Dress Barn, Inc.*
4,335
P.F. Chang’s China Bistro, Inc.*
2,560
Tractor Supply Co.*†
1,881
1,350
355
Shuffle Master, Inc.*†
9,219
Drew Industries, Inc.*†
2,755
Sonic Corp.*†
2,948
Fossil, Inc.*†
1,218
Universal Technical
Institute, Inc.*
2,770
Monarch Casino &
Resort, Inc.*†
2,542
4,162
CROCS, Inc.*†
3,320
LKQ Corp.*†
1,470
798
Select Comfort Corp.*
10,370
j2 Global Communications,
Inc.*†
6,180
Ansoft Corp.*
3,220
Bankrate, Inc.*†
2,803
Websense, Inc.*
5,750
Wright Express Corp.*†
3,880
3,132
Factset Research
Systems, Inc.†
1,361
6,950
Corp.*†
1,329
80 |
THE
RYDEX
$
114,697
114,262
109,360
108,761
98,773
98,165
91,761
85,547
78,144
77,837
76,298
74,585
69,825
69,648
67,389
65,457
61,651
60,726
60,517
58,002
57,190
54,624
54,513
49,416
45,542
43,942
43,630
35,407
34,514
29,996
28,302
26,593
26,563
23,756
17,007
2,212,400
142,140
117,208
109,513
96,830
96,224
91,705
76,706
69,709
65,121
MARKET
VALUE
SHARES
SPSS, Inc.*†
Faro Technologies, Inc.*†
Ansys, Inc.*†
CACI International, Inc. —
Class A*†
Intevac, Inc.*†
Netgear, Inc.*†
Blackbaud, Inc.†
Smith Micro Software, Inc.*†
EPIQ Systems, Inc.*
Daktronics, Inc.†
Sonic Solutions, Inc.*†
Diodes, Inc.*†
Secure Computing Corp.*
InfoSpace, Inc.
Stratasys, Inc.*†
LoJack Corp.*
ViaSat, Inc.*†
Global Payments, Inc.
HEALTH CARE 18.0%
HealthExtras, Inc.*
LHC Group, Inc.*
Palomar Medical
Integra LifeSciences
Holdings Corp.*†
AMN Healthcare
Services, Inc.*†
Immucor, Inc.*†
PharMerica Corp.*
Cooper Cos., Inc.†
Sciele Pharma, Inc.*†
Dionex Corp.*†
Sunrise Senior Living, Inc.*†
Idexx Laboratories, Inc.*
AmSurg Corp.*
Kensey Nash Corp.*
Abaxis, Inc.*
Pediatrix Medical Group, Inc.*
Amedisys, Inc.*†
SurModics, Inc.*†
LCA-Vision, Inc.†
1,950
9,330
1,740
2,480
1,312
$
64,799
64,470
63,284
62,422
61,821
1,276
5,098
3,826
3,865
2,378
8,870
3,430
3,365
2,320
1,633
1,430
7,069
1,447
9,180
4,494
1,580
3,980
2,910
1,130
1
58,403
57,505
53,028
52,448
50,889
50,559
48,397
47,783
46,794
43,699
43,601
42,131
39,995
38,005
37,435
29,167
29,054
23,164
22,837
47
1,996,893
5,104
4,020
5,396
3,000
153,835
135,514
125,457
83,370
7,235
72,205
1,586
70,545
4,156
2,631
2,900
1,515
2,689
765
2,195
974
1,893
1,433
1,710
1,140
1,268
1,660
806
781
2,585
811
6,810
70,320
68,090
65,511
56,282
52,032
50,773
49,344
47,473
46,076
42,417
41,639
41,416
40,639
40,056
39,679
39,378
38,000
36,365
32,484
June 30, 2008
MARKET
VALUE
SHARES
American Medical Systems
Holdings, Inc.*†
Air Methods Corp.*
Haemonetics Corp.*
ICU Medical, Inc.*†
Group, Inc.*†
Total Health Care
ENERGY 12.8%
Unit Corp.*†
St. Mary Land &
Exploration Co.†
Hornbeck Offshore
Services, Inc.*†
Penn Virginia Corp.†
Petroleum Development
Corp.*†
Helix Energy Solutions
Group, Inc.*
CARBO Ceramics, Inc.†
Superior Well Services, Inc.*
Oceaneering
Dril-Quip, Inc.*
Total Energy
FINANCIALS 8.7%
TradeStation Group, Inc.*†
Portfolio Recovery
Wilshire Bancorp, Inc.
Infinity Property &
Casualty Corp.†
Zenith National Insurance Corp.
Philadelphia Consolidated
Holding Corp.*
Nara Bancorp, Inc.†
PrivateBancorp, Inc.†
First Cash Financial
Services, Inc.*†
Total Financials
INDUSTRIALS 7.4%
Landstar System, Inc.†
Ceradyne, Inc.*†
Forward Air Corp.†
2,156
1,140
440
1,046
$
32,232
28,500
24,402
23,932
1,304
20,564
1,668,530
5,935
2,029
186,952
168,346
2,526
163,281
2,141
1,512
120,988
114,035
1,678
111,570
2,180
1,376
2,170
90,775
80,290
68,811
736
450
56,709
28,350
1,190,107
9,380
95,207
2,488
10,640
3,930
93,300
91,185
87,796
1,943
2,240
2,124
80,673
78,758
71,515
1,829
4,637
1,439
62,131
49,755
43,717
2,850
3,070
42,722
6,908
803,667
2,161
4,128
2,159
3,060
1,570
119,331
75,542
74,054
72,094
54,322
MARKET
VALUE
SHARES
Simpson Manufacturing
Co., Inc.†
2,204
1,165
Heartland Express, Inc.†
3,475
Waste Connections, Inc.*†
1,244
Toro Co.†
1,118
Teledyne Technologies, Inc.*
760
AAR Corp.*†
1,640
Total Industrials
Mannatech, Inc.†
20,519
USANA Health Sciences, Inc.*
3,056
Roasters, Inc.*†
1,320
Chattem, Inc.*†
640
Boston Beer Co., Inc. —
Class A*
1,010
United Natural Foods, Inc.*†
1,620
MATERIALS 3.2%
7,799
NewMarket Corp.†
1,310
Deltic Timber Corp.
1,560
Brush Engineered
Materials, Inc.*
1,270
Total Materials
Total Common Stocks
(Cost $7,917,121)
Lending Trust Prime
Portfolio (Note 9)
4,599,622
(Cost $4,599,622)
$
52,323
52,122
51,812
39,721
37,196
37,080
22,189
687,786
111,623
82,115
49,592
41,632
41,087
31,558
357,607
91,794
86,761
83,476
31,013
293,044
9,210,034
4,599,622
4,599,622
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08
$104,778
(Cost $104,778)
(Cost $12,621,521)
104,778
104,778
$13,914,434
$ (4,654,964)
$ 9,259,470
THE
RYDEX
| 81
(Unaudited)
June 30, 2008
MID-CAP GROWTH FUND
MARKET
VALUE
SHARES
COMMON STOCKS 99.4%
17,624
DreamWorks Animation
SKG, Inc. — Class A*
17,670
Urban Outfitters, Inc.*†
14,510
NVR, Inc.*†
888
11,220
Strayer Education, Inc.†
1,903
Getty Images, Inc.*†
11,070
Toll Brothers, Inc.*†
18,297
10,400
ITT Educational Services, Inc.*
3,856
Dollar Tree, Inc.*
8,288
6,134
Valassis Communications, Inc.*†
20,893
Advance Auto Parts, Inc.
6,706
Chico’s FAS, Inc.*†
47,701
Timberland Co. — Class A*†
15,661
19,895
8,860
Matthews International
Corp. — Class A
5,019
John Wiley & Sons,
Inc. — Class A
4,882
Career Education Corp.*†
14,576
Chipotle Mexican Grill,
2,400
Scientific Games
6,472
Williams-Sonoma, Inc.†
9,006
Sotheby’s†
6,340
Pacific Sunwear of
18,938
American Eagle Outfitters, Inc.
11,156
Cheesecake Factory, Inc.*†
9,039
O’Reilly Automotive, Inc.*†
5,915
Guess?, Inc.†
3,361
Digital River, Inc.*†
15,940
Western Digital Corp.*†
13,241
F5 Networks, Inc.*†
15,890
10,580
Silicon Laboratories, Inc.*†
9,689
Cree, Inc.*†
12,575
DST Systems, Inc.*†
5,134
ACI Worldwide, Inc.*†
15,900
Amphenol Corp. — Class A
5,657
McAfee, Inc.*†
7,052
82 |
THE
RYDEX
$
552,160
526,743
452,567
444,071
398,535
397,860
375,605
342,703
334,256
318,621
270,935
270,325
261,580
260,394
256,154
256,057
230,981
227,170
227,160
219,837
212,955
198,288
191,701
178,679
167,186
161,541
152,056
143,811
132,200
125,870
8,288,001
614,965
457,212
451,594
429,230
349,676
286,836
282,627
279,681
253,886
239,979
MARKET
VALUE
SHARES
Global Payments, Inc.†
Plantronics, Inc.
Alliance Data Systems Corp.*
Trimble Navigation Ltd.*
Class A*†
Harris Corp.
Fair Isaac Corp.†
HEALTH CARE 16.8%
Sepracor, Inc.*†
Invitrogen Corp.*
Endo Pharmaceuticals
Holdings, Inc.*†
Kinetic Concepts, Inc.*†
Techne Corp.*†
Pharmaceutical Product
Development, Inc.
VCA Antech, Inc.*†
Apria Healthcare Group, Inc.*
Hologic, Inc.*†
Lincare Holdings, Inc.*
Community Health
Systems, Inc.*
Gen-Probe, Inc.*†
ResMed, Inc.*†
Affymetrix, Inc.*†
Cerner Corp.*†
Covance, Inc.*†
Charles River Laboratories
Medicis Pharmaceutical
Total Health Care
ENERGY 11.2%
Cimarex Energy Co.†
Pioneer Natural Resources Co.†
FMC Technologies, Inc.*†
Denbury Resources, Inc.*†
Newfield Exploration Co.*
Quicksilver Resources, Inc.*
Frontier Oil Corp.†
Total Energy
5,137
10,141
3,266
11,920
4,410
$
239,384
226,347
184,692
180,588
157,437
6,772
2,894
6,130
8,260
5,880
152,099
146,118
127,014
123,570
122,128
5,305,063
16,043
20,149
9,704
607,067
401,368
380,979
14,100
8,070
3,712
341,079
322,074
287,272
5,999
9,190
13,113
10,850
7,786
257,357
255,298
254,261
236,530
221,122
6,620
4,048
5,356
11,005
16,090
2,868
3,176
1,626
218,328
192,199
191,423
178,611
165,566
147,903
143,492
139,868
1,899
121,384
5,597
116,306
5,179,487
16,350
7,770
4,258
4,044
8,218
4,126
6,620
9,260
1,229,357
541,336
333,316
311,105
299,957
269,221
255,797
221,407
3,461,496
June 30, 2008
MID-CAP GROWTH FUND
MARKET
VALUE
SHARES
INDUSTRIALS 10.2%
Joy Global, Inc.
Navigant Consulting, Inc.*†
Alliant Techsystems, Inc.*†
Graco, Inc.†
Dun & Bradstreet Corp.
Korn/Ferry International, Inc.*
Fastenal Co.†
Corporate Executive Board Co.
Donaldson Co., Inc.†
Copart, Inc.*†
Rollins, Inc.
Total Industrials
MATERIALS 9.3%
Cleveland-Cliffs, Inc.†
Commercial Metals Co.†
Total Materials
FINANCIALS 4.5%
Jones Lang LaSalle, Inc.†
W.R. Berkley Corp.
Eaton Vance Corp.†
Brown & Brown, Inc.†
Affiliated Managers
Group, Inc.*†
SEI Investments Co.
Total Financials
NBTY, Inc.*
Energizer Holdings, Inc.*†
Church & Dwight Co., Inc.
Total Common Stocks
(Cost $26,177,200)
6,600
21,263
3,101
7,392
2,807
13,842
4,784
4,664
4,390
4,279
10,293
3,410
2,240
$
500,478
415,904
315,310
281,413
246,006
217,735
206,477
196,121
195,970
183,227
152,542
136,366
115,808
3,163,357
8,944
14,982
13,849
2,415
6,586
1,066,035
585,347
522,107
369,012
325,019
2,867,520
5,604
10,428
5,895
11,913
337,305
251,940
234,385
207,167
2,080
7,953
187,325
187,055
1,405,177
11,447
8,436
3,622
3,343
329,903
270,458
264,732
188,378
1,053,471
SHARES
MARKET
VALUE
Lending Trust Prime
Portfolio (Note 9)
13,152,489
(Cost $13,152,489)
$ 13,152,489
13,152,489
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08
$134,313
(Cost $134,313)
(Cost $39,464,002)
134,313
134,313
$ 44,010,374
$ (13,108,301)
$ 30,902,073
30,723,572
THE
RYDEX
| 83
(Unaudited)
June 30, 2008
MARKET
VALUE
SHARES
COMMON STOCKS 99.3%
552
8,572
Yahoo!, Inc.*†
11,743
Apple, Inc.*
1,300
Dell, Inc.*†
9,754
Qualcomm, Inc.
4,589
Intuit, Inc.*
7,126
Lexmark International, Inc.*†
5,570
4,535
Oracle Corp.*
8,259
eBay, Inc.*
6,337
4,706
Symantec Corp.*†
8,451
Fiserv, Inc.*†
3,557
6,631
Total System Services, Inc.
6,290
Autodesk, Inc.*†
3,938
NetApp, Inc.*†
5,907
Microsoft Corp.
4,450
SanDisk Corp.*†
6,205
QLogic Corp.*†
7,947
Western Union Co.†
4,520
Citrix Systems, Inc.*†
3,549
2,081
National Semiconductor
Corp.†
4,348
Motorola, Inc.†
12,050
MEMC Electronic
Materials, Inc.*
1,318
BMC Software, Inc.*
2,070
Nvidia Corp.*†
3,610
Coach, Inc.*
10,565
3,560
3,484
TJX Cos., Inc.†
7,821
8,003
AutoZone, Inc.*
1,830
H&R Block, Inc.†
9,581
Abercrombie & Fitch
Co. — Class A†
3,198
Darden Restaurants, Inc.†
6,155
Apollo Group,
4,161
Starbucks Corp.*†
10,982
Harley-Davidson, Inc.†
4,729
Expedia, Inc.*†
9,270
84 |
THE
RYDEX
$
290,584
278,676
242,610
217,672
213,417
203,614
196,464
186,205
178,634
173,439
173,190
163,722
163,527
161,381
154,237
139,764
133,144
127,946
122,419
116,033
115,947
111,734
104,376
92,459
89,308
88,447
81,110
74,520
67,579
4,462,158
305,117
262,229
255,482
246,127
224,884
221,448
205,033
200,451
196,591
184,166
172,857
171,473
170,383
MARKET
VALUE
SHARES
Lowe’s Cos., Inc.†
Black & Decker Corp.†
Goodyear Tire &
Rubber Co.*†
Kohl’s Corp.*†
Omnicom Group, Inc.†
McGraw-Hill Cos., Inc.†
Industries, Inc.
Polo Ralph Lauren Corp.†
International Game
Technology, Inc.†
HEALTH CARE 16.8%
Intuitive Surgical, Inc.*†
Zimmer Holdings, Inc.*
IMS Health, Inc.
Amgen, Inc.*
Celgene Corp.*
Waters Corp.*
Medtronic, Inc.†
Patterson Cos., Inc.*†
Stryker Corp.†
Hospira, Inc.*
Quest Diagnostics, Inc.
Barr Pharmaceuticals, Inc.*†
Coventry Health Care, Inc.*
C.R. Bard, Inc.†
Genzyme Corp.*
Total Health Care
ENERGY 16.1%
XTO Energy, Inc.†
Chesapeake Energy Corp.†
Apache Corp.
ConocoPhillips
Schlumberger Ltd.
4,836
7,885
2,837
$
169,695
163,614
163,156
8,830
3,258
3,216
2,698
1,954
2,820
157,439
130,450
127,354
121,086
116,478
113,138
2,525
1,594
2,080
104,510
100,071
84,032
3,362
83,983
4,451,247
1,070
4,189
4,743
3,856
6,745
4,396
9,383
4,038
4,561
2,886
2,812
3,484
2,960
5,208
288,258
285,062
245,925
241,848
234,321
232,768
218,624
190,432
186,454
184,329
181,374
180,297
165,434
153,063
2,153
2,364
3,619
2,673
2,833
1,932
4,075
1,252
1,311
4,058
1,430
149,913
148,648
145,158
129,560
127,712
124,305
123,962
110,113
106,584
106,523
102,989
4,363,656
5,696
2,507
4,961
2,163
2,570
2,180
390,233
328,918
327,228
300,657
242,582
234,197
June 30, 2008
MARKET
VALUE
SHARES
Halliburton Co.†
Murphy Oil Corp.†
Devon Energy Corp.
BJ Services Co.†
Transocean, Inc.*†
Sunoco, Inc.†
Exxon Mobil Corp.
Smith International, Inc.†
Cabot Oil & Gas Corp.
Valero Energy Corp.
Southwestern Energy Co.*†
Baker Hughes, Inc.
Cameron International
Corp.*†
Total Energy
FINANCIALS 8.6%
CB Richard Ellis Group,
Inc. — Class A*
Safeco Corp.†
Moody’s Corp.†
Progressive Corp.†
SLM Corp.*†
IntercontinentalExchange,
Inc.*
Leucadia National Corp.†
Federated Investors,
Inc. — Class B
CME Group, Inc.†
Franklin Resources, Inc.
NYSE Euronext†
Total Financials
INDUSTRIALS 7.6%
Cummins, Inc.
Expeditors International
of Washington, Inc.†
CH Robinson
Worldwide, Inc.†
Danaher Corp.†
L-3 Communications
Holdings, Inc.†
Pitney Bowes, Inc.†
General Dynamics Corp.†
Rockwell Collins, Inc.
ITT Corporation†
Terex Corp.*
4,380
2,370
1,754
6,489
1,269
4,540
1,560
1,915
1,798
2,190
3,330
2,620
1,170
$
232,447
232,378
210,761
207,259
193,383
184,733
175,297
168,769
149,486
148,329
137,129
124,738
102,188
1,760
97,416
4,188,128
15,210
4,150
7,900
13,920
11,700
292,032
278,714
272,076
260,582
226,395
1,750
4,171
199,500
195,787
4,420
350
1,020
2,180
1,100
152,136
134,117
93,483
82,121
55,726
2,242,669
3,010
2,610
197,215
192,670
4,160
1,470
178,880
145,030
2,600
1,828
142,584
141,305
1,464
3,850
1,456
2,408
1,810
2,110
133,034
131,285
122,595
115,488
114,627
108,391
MARKET
VALUE
SHARES
Equifax, Inc.
3,170
Jacobs Engineering
Group, Inc.*†
890
Rockwell Automation, Inc.†
1,590
Total Industrials
3,413
Clorox Co.
3,488
Avon Products, Inc.†
4,802
UST, Inc.†
2,942
Kellogg Co.†
3,197
2,187
WM Wrigley Jr Co.
1,936
Estee Lauder Cos.,
Inc. — Class A†
3,220
Campbell Soup Co.
4,307
Hershey Co.†
4,353
Pepsi Bottling Group, Inc.
4,370
PepsiCo, Inc.
1,693
MATERIALS 7.1%
2,710
Nucor Corp.†
4,593
& Gold, Inc.†
2,550
Ball Corp.†
5,101
Titanium Metals Corp.†
9,740
Sigma-Aldrich Corp.†
2,290
Ecolab, Inc.†
2,558
Pactiv Corp.*
3,856
Total Materials
UTILITIES 1.7%
Questar Corp.
2,290
AES Corp.*†
7,528
Constellation Energy
Group, Inc.
1,720
Total Utilities
Total Common Stocks
(Cost $23,698,528)
Lending Trust
Prime Portfolio (Note 9)
9,491,074
(Cost $9,491,074)
THE
RYDEX
$
106,575
71,823
69,531
1,971,033
212,015
182,074
172,968
160,663
153,520
151,122
150,582
149,569
144,112
142,691
122,010
107,658
1,848,984
500,754
342,959
298,835
243,522
136,263
123,339
109,968
81,863
1,837,503
162,681
144,613
141,212
448,506
25,813,884
9,491,074
9,491,074
| 85
June 30, 2008
FACE
AMOUNT
issued 06/30/08 at 0.25%
due 07/01/08
$178,023
(Cost $178,023)
(Cost $33,367,625)
MARKET
VALUE
$
178,023
178,023
$35,482,981
$ (9,479,901)
$26,003,080
86 |
THE
RYDEX
(Unaudited)
June 30, 2008
U.S. GOVERNMENT MONEY MARKET FUND
FACE
AMOUNT
MARKET
VALUE
Fannie Mae*
2.44% due 10/27/08
$30,000,000
2.20% due 09/22/08
25,000,000
Farmer Mac*
2.00% due 08/07/08
25,000,000
2.30% due 08/29/08
25,000,000
Freddie Mac*
2.05% due 07/11/08
25,000,000
2.74% due 07/28/08
25,000,000
(Cost $154,422,025)
issued 06/30/08 at 1.75%
due 07/01/08
44,858,105
issued 06/30/08 at 1.74%
due 07/01/08
44,858,105
Morgan Stanley
issued 06/30/08 at 1.70%
due 07/01/08
44,858,105
issued 06/30/08 at 0.25%
due 07/01/08
44,425,913
(Cost $179,000,228)
(Cost $333,422,253)
$ 29,760,067
24,873,194
24,948,611
24,905,764
24,985,764
24,948,625
154,422,025
44,858,105
44,858,105
44,858,105
44,425,913
179,000,228
$333,422,253
$ (14,390,751)
$319,031,502
U.S. Government.
THE
RYDEX
| 87
S TAT E M E N T S O F A S S E T S A N D L I A B I L I T I E S
Inverse
Inverse
S&P 500
NASDAQ-100®
®
Strategy NASDAQ-100
Strategy
Fund
Fund
Fund
Nova
Fund
ASSETS
Investment Securities*
Repurchase Agreements*
Segregated Cash with Broker
Cash
Unrealized Appreciation on Swaps
Receivable for Swap Units Sold
Variation Margin on Futures Contracts
Receivable for Securities Sold
Receivable for Fund Shares Sold
Investment Income Receivable
Total Assets
LIABILITIES
Unrealized Depreciation on Swaps
Payable for Swap Units Sold
Payable upon Return of Securities Loaned
Payable for Securities Purchased
Payable for Fund Shares Redeemed
Investment Advisory Fees Payable
Transfer Agent and Administrative Fees Payable
Distribution and Service Fees Payable
Portfolio Accounting Fees Payable
Custody Fees Payable
Other Liabilities
Total Liabilities
NET ASSETS
NET ASSETS CONSIST OF
Paid-In Capital
Undistributed Net Investment Income (Loss)
Accumulated Net Realized Loss on Investments
Net Unrealized Appreciation (Depreciation) on Investments
NET ASSETS
SHARES OUTSTANDING
NET ASSET VALUES
$ 53,196,324
758,592
2,353,898
5,626,003
—
119,190
453,215
188,812
185,692
59,288
(Unaudited)
$
6,000,000
75,251,903
7,719,595
—
882,420
883,643
—
—
19,971,251
2,804
$ 59,390,808
244,093
832,857
13,886,357
—
165,649
—
—
2,745,242
2,886
$ 3,999,535
10,666,184
1,972,236
—
629,365
—
106,470
—
5,586,125
400
62,941,014
110,711,616
77,267,892
22,960,315
477,095
—
—
9,900,011
—
912,042
35,398
11,799
11,799
4,720
1,416
41,544
—
—
669,730
—
—
16,389
28,296
7,860
7,860
3,144
943
22,007
323,204
—
281,261
12,116,434
—
1,041,237
41,621
13,874
13,874
5,549
1,665
47,798
—
1,475,629
—
—
—
18,730
12,110
3,364
3,364
1,346
404
16,010
11,395,824
$ 51,545,190
756,229
$ 109,955,387
13,886,517
$ 63,381,375
1,530,957
$ 21,429,358
$140,837,838
578,165
(93,378,833)
3,508,020
$ 51,545,190
6,317,368
$8.16
$135,252,661 $ 428,792,417
289,526
(92,160)
(27,023,057) (382,211,260)
1,436,257
16,892,378
$ 109,955,387 $ 63,381,375
2,301,334
3,975,301
$47.78
$15.94
$ 36,393,274
136,889
(16,222,696)
1,121,891
$ 21,429,358
1,138,081
$18.83
* The cost of investments is $49,384,368, $81,251,903, $41,881,361, $14,665,719, $23,611,626, $19,807,400, $27,279,740, $5,687,878,
$4,001,528, $14,496,379, $8,621,714 and $57,900,545, respectively.
88 |
THE
RYDEX
June 30, 2008
S&P 500 NASDAQ-100®
2x Strategy
2x Strategy
Fund
Fund
Mid-Cap
1.5x Strategy
Fund
Inverse
Mid-Cap
Strategy
Fund
Russell 2000® Russell 2000®
2x Strategy 1.5x Strategy
Fund
Fund
Inverse
Russell 2000®
Strategy
Fund
Government
Long Bond
1.2x Strategy
Fund
$22,896,800
2,827,139
3,021,190
127
—
—
6,938
57,025
1,202,305
25,603
$ 24,577,005
1,796,359
4,681,280
15,084,594
—
—
—
—
197,893
802
$19,815,823
8,240,038
1,725,126
—
—
—
—
—
780,974
9,562
$ 3,499,437
2,188,441
313,214
—
134,741
341,745
—
—
29,870
83
$ 2,724,096
1,392,615
419,694
23
—
95,641
58,800
—
287,643
2,140
$15,166,290
—
1,162,418
4,601,245
—
216,412
—
—
382,268
12,769
$ 1,999,943
6,621,771
1,245,676
—
796,719
56,665
21,000
—
185,938
251
$ 38,808,296
20,078,551
1,155,600
—
—
—
80,250
—
3,173,876
418,692
30,037,127
46,337,933
30,571,523
6,507,531
4,980,652
21,541,402
10,927,963
63,715,265
683,921
480,228
—
3,676,802
67,649
65,540
19,898
5,527
5,527
2,211
663
17,751
1,425,304
400,267
332,605
4,990,476
—
1,102,241
32,125
8,924
8,924
3,569
1,071
30,548
546,463
297,186
45,880
5,023,409
—
374,896
18,486
5,135
5,135
2,054
616
19,145
—
—
102,744
—
—
146,810
6,500
1,806
1,806
722
217
3,410
154,433
—
18,665
845,476
—
420
3,299
916
916
367
110
2,336
469,499
65,878
24,773
4,469,293
—
1,042,881
12,747
3,541
3,541
1,416
425
15,277
—
497,230
8,762
—
—
112,164
8,409
2,336
2,336
934
280
7,829
—
—
—
—
611,289
1,402,435
18,553
7,421
9,277
3,711
1,279
36,187
5,025,717
$25,011,410
8,336,054
$ 38,001,879
6,338,405
$24,233,118
264,015
$ 6,243,516
1,026,938
$ 3,953,714
6,109,271
$15,432,131
640,280
$ 10,287,683
2,090,152
$61,625,113
$31,519,039
101,419
(7,612,764)
1,003,716
$25,011,410
1,757,866
$14.23
$ 49,210,985
(27,335)
(15,060,440)
3,878,669
$ 38,001,879
1,727,717
$22.00
$27,545,353
24,237
(3,089,670)
(246,802)
$24,233,118
1,223,002
$19.81
$ 7,910,909
36,578
(1,915,897)
211,926
$ 6,243,516
172,330
$36.23
$ 5,736,464
57,963
(1,754,977)
(85,736)
$ 3,953,714
226,753
$17.44
$19,421,356
54,436
(3,985,908)
(57,753)
$15,432,131
535,011
$28.84
$16,656,076
88,106
(7,253,298)
796,799
$10,287,683
273,277
$37.65
$ 64,849,863
—
(5,487,091)
2,262,341
$61,625,113
5,079,706
$12.13
THE
RYDEX
| 89
S TAT E M E N T S O F A S S E T S A N D L I A B I L I T I E S
ASSETS
Investment Securities*
Repurchase Agreements*
Segregated Cash with Broker
Cash
Unrealized Appreciation on Swaps
Receivable for Swap Units Sold
Receivable for Securities Sold
Receivable for Fund Shares Sold
Investment Income Receivable
Total Assets
LIABILITIES
Short Sales at Market Value**
Payable to cover Short Sale
Unrealized Depreciation on Swaps
Payable for Swap Units Sold
Payable upon Return of Securities Loaned
Payable for Securities Purchased
Payable for Fund Shares Redeemed
Investment Advisory Fees Payable
Transfer Agent and Administrative Fees Payable
Distribution and Service Fees Payable
Portfolio Accounting Fees Payable
Custody Fees Payable
Interest Payable
Other Liabilities
Total Liabilities
NET ASSETS
NET ASSETS CONSIST OF
Paid-In Capital
Undistributed Net Investment Income (Loss)
Accumulated Net Realized Loss on Investments
Net Unrealized Appreciation (Depreciation) on Investments
NET ASSETS
SHARES OUTSTANDING
NET ASSET VALUES
Inverse
Government
Long Bond
Strategy
Fund
Europe 1.25x
Strategy
Fund
Japan 1.25x
Strategy
Fund
Dow 2x
Strategy
Fund
$ 3,000,000
23,385,545
301,032
—
—
—
—
—
41
912
$37,166,362
473,772
448,479
3,667,331
—
51,843
483,130
—
5,883
78,991
$ 1,000,000
12,574,636
1,055,000
—
—
—
—
—
5,051
452
$ 25,892,720
1,862,673
1,339,356
4,622,487
—
—
—
—
457,452
18,907
26,687,530
42,375,791
14,635,139
34,193,595
3,820,070
3,137,776
—
—
60,593
—
705
3,086,007
13,839
3,844
3,844
1,538
461
117,208
12,807
—
—
72,920
—
7,054
10,543,611
—
696,572
25,564
7,101
7,101
2,840
852
—
29,591
—
—
122,504
85,986
33,501
—
—
825,185
11,291
3,136
3,136
1,255
376
—
11,975
—
—
506,754
285,597
3,094
2,989,260
—
249,588
22,707
6,307
6,307
2,523
757
—
8,523
10,258,692
$ 16,428,838
11,393,206
$30,982,585
1,098,345
$13,536,794
4,081,417
$ 30,112,178
$ 28,063,556
(53,070)
(11,409,734)
(171,914)
$ 16,428,838
853,246
$19.25
$36,906,478
766,918
(9,148,647)
2,457,836
$30,982,585
1,249,234
$24.80
$18,483,277
135,499
(4,583,344)
(498,638)
$13,536,794
641,660
$21.10
$ 43,258,088
288,273
(11,743,373)
(1,690,810)
$ 30,112,178
1,639,662
$18.36
* The cost of investments is $26,387,044, $34,916,828, $13,574,636, $27,459,356, $13,708,625, $14,346,999, $16,060,953, $29,853,257,
$12,621,521, $39,464,002, $33,367,625 and $333,422,253, respectively.
** The proceeds from short sales are $3,957,195, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0 and $0, respectively.
90 |
THE
RYDEX
June 30, 2008
Inverse
Dow 2x
Strategy
Fund
Small-Cap
Value
Fund
Mid-Cap
Value
Fund
Large-Cap
Value
Fund
Small-Cap
Growth
Fund
Mid-Cap
Growth
Fund
$ 1,000,000
12,708,625
341,844
—
2,712,771
281,967
—
—
4,254,971
368
$14,216,842
55,414
—
1,091
—
—
—
1,945,260
2,930
22,345
$15,660,801
67,487
—
—
—
—
—
340,319
63,569
15,138
$27,974,653
148,014
—
1,633
—
—
—
176,317
1,600,414
58,857
$13,809,656
104,778
—
—
—
—
—
532,966
99,794
3,294
$43,876,061
134,313
—
—
—
—
—
—
2,331,541
4,885
$35,304,958
178,023
—
—
—
—
—
—
184,524
11,886
$154,422,025
179,000,228
—
—
—
—
—
—
555,463
6,775
21,300,546
16,243,882
16,147,314
29,959,888
14,550,488
46,346,800
35,679,391
333,984,491
—
—
—
—
319,442
—
—
436,133
16,340
4,539
4,539
1,816
545
—
6,492
—
—
—
—
—
5,149,458
—
1,923,147
7,290
2,430
2,430
972
292
—
9,158
—
—
—
—
—
4,733,265
—
407,464
7,999
2,667
2,667
1,067
320
—
12,652
—
—
—
—
—
8,520,085
185,106
1,627,523
12,721
4,240
4,240
1,696
509
—
20,713
—
—
—
—
—
4,599,622
—
668,665
7,151
2,384
2,384
953
292
—
9,567
—
—
—
—
—
13,152,489
2,222,532
17,191
19,891
6,630
6,630
2,652
815
—
15,897
—
—
—
—
—
9,491,074
—
137,483
17,449
5,816
5,816
2,327
698
—
15,648
—
—
—
—
—
—
—
14,515,085
114,824
45,930
57,412
22,176
6,889
—
190,673
789,846
$20,510,700
7,095,177
$ 9,148,705
5,168,101
$10,979,213
10,376,833
$19,583,055
5,291,018
$ 9,259,470
15,444,727
$30,902,073
9,676,311
$26,003,080
14,952,989
$319,031,502
$21,318,051
112,809
(3,633,967)
2,713,807
$20,510,700
547,421
$37.47
$14,249,848
209,053
(5,235,453)
(74,743)
$ 9,148,705
596,674
$15.33
$13,793,339
134,351
(2,615,812)
(332,665)
$10,979,213
618,961
$17.74
$25,773,014
438,190
(4,897,559)
(1,730,590)
$19,583,055
1,016,124
$19.27
$13,563,058
14,631
(5,611,132)
1,292,913
$ 9,259,470
384,188
$24.10
$34,203,235
(116,211)
(7,731,323)
4,546,372
$30,902,073
1,077,876
$28.67
$30,243,414
(74,702)
(6,280,988)
2,115,356
$26,003,080
1,036,902
$25.08
$319,025,551
7,497
(1,546)
—
$319,031,502
319,045,159
$1.00
THE
RYDEX
Large-Cap U.S. Government
Growth Money Market
Fund
Fund
| 91
S TAT E M E N T S O F O P E R AT I O N S
INVESTMENT INCOME
Interest
Income from Securities Lending, net
Dividends, Net of Foreign Tax Withheld*
Total Income
EXPENSES
Investment Advisory Fees
Transfer Agent and Administrative Fees
Audit and Outside Service Fees
Portfolio Accounting Fees
Trustees’ Fees**
Service Fees
Custody Fees
Miscellaneous
Total Expenses
Net Investment Income (Loss)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities
Equity Index Swaps
Futures Contracts
Total Net Realized Gain (Loss)
(Unaudited)
$
Nova
Fund
Inverse
S&P 500
Strategy
Fund
156,451
15,736
684,052
$ 440,987
—
—
856,239
Inverse
NASDAQ-100®
NASDAQ-100®
Strategy
Fund
Fund
$
169,499
19,201
125,060
$ 257,509
—
—
440,987
313,760
257,509
251,507
83,836
32,186
33,534
3,614
83,836
8,875
3,800
177,235
49,232
16,155
19,693
1,938
49,232
5,344
4,840
238,228
79,409
31,641
31,764
3,483
79,409
8,395
10,791
100,960
28,044
11,758
11,218
1,208
28,044
3,022
3,159
501,188
323,669
483,120
187,413
355,051
117,318
(169,360)
70,096
(3,694,877)
(3,238,849)
(3,609,289)
—
1,730,052
1,955,276
(2,273,998)
(947,346)
233,364
—
945,731
384,742
(10,543,015)
3,685,328
(2,987,980)
1,330,473
Net Change in Unrealized Appreciation (Depreciation) on:
Equity Index Swaps
Futures Contracts
(3,497,151)
(290,455)
(818,665)
—
786,764
451,792
(5,853,541)
(231,683)
(594,223)
—
522,582
417,534
Net Change in Unrealized Appreciation (Depreciation)
(4,606,271)
1,238,556
(6,679,447)
940,116
(15,149,286)
4,923,884
(9,667,427)
2,270,589
$(14,794,235)
$5,041,202
$ (9,836,787)
$ 2,340,685
Net Gain (Loss) on Investments
Net Increase (Decrease) in Net Assets from Operations
* Foreign tax withheld of $0, $0, $2,066, $0, $0, $989, $0, $0, $6, $27, $0, and $0, respectively.
** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
92 |
THE
RYDEX
Period Ended June 30, 2008
S&P 500
2x Strategy
Fund
$ 141,445
5,194
201,570
Mid-Cap
NASDAQ-100®
Fund
Fund
$
205,356
11,068
69,014
$
Inverse
Mid-Cap
Strategy
Fund
Russell 2000® Russell 2000®
Fund
Fund
83,522
9,527
123,960
$ 71,069
—
—
$ 20,315
2,779
17,153
$
Inverse
Government
Russell 2000®
Long Bond
Strategy 1.2x Strategy
Fund
Fund
60,378
11,232
98,697
$ 162,471
—
—
$1,218,878
—
—
348,209
285,438
217,009
71,069
40,247
170,307
162,471
1,218,878
135,122
37,534
12,604
15,014
1,479
37,534
3,978
3,525
188,999
52,500
19,334
21,000
2,247
52,500
9,904
8,782
106,291
29,525
18,541
11,810
1,677
29,525
3,220
(7,817)
28,596
7,943
1,839
3,177
240
7,943
884
1,894
20,208
5,613
1,484
2,245
206
5,613
635
1,016
76,910
21,364
16,454
8,546
1,369
21,364
2,278
(7,424)
63,996
17,776
5,457
7,111
649
17,776
1,930
3,916
141,493
56,597
29,697
28,299
3,090
70,747
8,265
(3,074)
246,790
355,266
192,772
52,516
37,020
140,861
118,611
335,114
101,419
(69,828)
24,237
18,553
3,227
29,446
43,860
883,764
(1,065,294)
(2,568,640)
(2,684,590)
(1,325,447)
(6,169,993)
72,094
(2,344,214)
218,384
(142,659)
—
(30,121)
(14,648)
(448,587)
296,575
(595,654)
(2,188,965)
245,967
(593,603)
—
299,852
245,038
(249,407)
—
(416,025)
(6,318,524)
(7,423,346)
(2,268,489)
(44,769)
(747,666)
(2,536,601)
544,890
(665,432)
(1,059,778)
(336,743)
(619,770)
(3,510,878)
(1,425,944)
(1,343,259)
969,878
(648,223)
(260,810)
—
101,280
47,000
104,002
(148,946)
(82,127)
306,181
(452,762)
(358,495)
—
803,664
1,925
(888,002)
—
1,341,725
(2,016,291)
(6,280,081)
60,845
148,280
(127,071)
(505,076)
805,589
453,723
(8,334,815)
(13,703,427)
(2,207,644)
103,511
(874,737)
(3,041,677)
1,350,479
(211,709)
$(8,233,396)
$(13,773,255)
$(2,183,407)
$122,064
$(871,510)
$(3,012,231)
$1,394,339
$ 672,055
THE
RYDEX
| 93
S TAT E M E N T S O F O P E R AT I O N S
Inverse
Government
Long Bond
Strategy
Fund
INVESTMENT INCOME
Interest
Income from Securities Lending, net
Dividends, Net of Foreign Tax Withheld*
Total Income
$ 385,694
—
—
Europe 1.25x
Strategy
Fund
$
Japan 1.25x
Strategy
Fund
90,592
18,951
856,097
$
180,739
—
—
Dow 2x
Strategy
Fund
$
111,063
4,456
306,096
385,694
965,640
180,739
421,615
87,754
24,376
10,455
9,751
337,076
1,058
24,376
2,607
(1,275)
191,892
53,303
32,167
21,321
—
3,078
53,303
6,459
(8,488)
67,078
18,633
11,807
7,453
—
1,056
18,633
1,985
(5,037)
146,936
40,815
9,226
16,326
—
1,071
40,815
4,418
9,843
496,178
353,035
121,608
269,450
(110,484)
612,605
59,131
152,165
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Equity Index Swaps
Futures Contracts
Securities Sold Short
(493)
—
(81,458)
(559,847)
(3,010,772)
(2,797,022)
(347,255)
—
—
(1,512,796)
(104,729)
—
(511,217)
(3,455,909)
(2,662,350)
—
(641,798)
(6,155,049)
(1,617,525)
(6,629,476)
Net Change in Unrealized Appreciation (Depreciation) on:
Equity Index Swaps
Futures Contracts
Securities Sold Short
(1,498)
—
(355,910)
224,822
(4,910,243)
552,540
(192,550)
—
—
257,691
(214,871)
—
(3,663,840)
83,362
(1,542,445)
—
(132,586)
(4,550,253)
42,820
(5,122,923)
Net Gain (Loss) on Investments
(774,384)
(10,705,302)
(1,574,705)
(11,752,399)
$ (884,868)
$(10,092,697)
EXPENSES
Investment Advisory Fees
Transfer Agent and Administrative Fees
Audit and Outside Service Fees
Portfolio Accounting Fees
Interest Expense
Trustees’ Fees**
Service Fees
Custody Fees
Miscellaneous
Total Expenses
Total Net Realized Gain (Loss)
$ (1,515,574) $(11,600,234)
* Foreign tax withheld of $0, $126,954, $0, $0, $0, $206, $0, $0, $0, $0, $0, and $0, respectively.
** Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
94 |
THE
RYDEX
Period Ended June 30, 2008
Inverse
Dow 2x
Strategy
Fund
$ 221,554
—
—
Small-Cap
Value
Fund
$
720
24,332
154,394
Mid-Cap
Value
Fund
$
783
29,586
214,773
Large-Cap
Value
Fund
$
1,067
28,603
406,598
Small-Cap
Growth
Fund
$
902
28,011
78,300
Mid-Cap
Growth
Fund
$
Large-Cap U.S. Government
Growth Money Market
Fund
Fund
1,700
24,575
44,621
$
1,903
11,728
115,699
$4,362,399
—
—
221,554
179,446
245,142
436,268
107,213
70,896
129,330
4,362,399
91,138
25,316
5,200
10,127
—
558
25,316
2,786
7,886
44,499
14,833
8,423
5,933
—
756
14,833
1,599
(2,948)
56,043
18,681
12,978
7,472
—
1,127
18,681
2,068
(6,259)
86,744
28,915
21,965
11,566
—
1,870
28,915
3,067
(11,692)
46,847
15,616
9,065
6,247
—
862
15,616
1,698
(3,369)
94,673
31,558
11,651
12,623
—
1,289
31,558
3,441
314
103,298
34,433
10,786
13,773
—
1,338
34,433
3,634
2,337
797,079
318,832
143,367
150,435
—
15,707
398,539
52,823
8,313
168,327
87,928
110,791
171,350
92,582
187,107
204,032
1,885,095
53,227
91,518
134,351
264,918
14,631
(116,211)
(74,702)
2,477,304
—
2,609,155
521,771
—
(2,300,253)
—
—
—
(2,077,381)
—
—
—
(5,143,096)
—
—
—
(1,368,705)
—
—
—
(2,610,300)
—
—
—
(2,605,077)
—
—
—
—
—
—
—
3,130,926
(2,300,253)
(2,077,381)
(5,143,096)
(1,368,705)
(2,610,300)
(2,605,077)
—
—
2,319,363
(112,686)
—
(374,629)
—
—
—
(318,701)
—
—
—
(1,896,811)
—
—
—
(160,852)
—
—
—
1,058,819
—
—
—
(1,511,350)
—
—
—
—
—
—
—
2,206,677
(374,629)
(318,701)
(1,896,811)
(160,852)
1,058,819
(1,511,350)
—
5,337,603
(2,674,882)
(2,396,082)
(7,039,907)
(1,529,557)
(1,551,481)
(4,116,427)
—
$5,390,830
$(2,583,364)
$(2,261,731)
$(6,774,989)
$(1,514,926)
$(1,667,692)
$(4,191,129)
$2,477,304
THE
RYDEX
| 95
S TAT E M E N T S O F C H A N G E S I N N E T A S S E T S
Inverse S&P 500
Strategy Fund
Nova Fund
Period
Ended
June 30,
2008†
Year
Ended
December 31,
2007
Period
Ended
June 30,
2008†
Year
Ended
December 31,
2007
FROM OPERATIONS
Net Realized Gain (Loss) on Investments
on Investments
$
355,051
(10,543,015)
$
1,080,329
5,154,818
$
117,318
3,685,328
$
825,635
(1,764,661)
(4,606,271)
(1,800,911)
1,238,556
182,590
(14,794,235)
4,434,236
5,041,202
(756,436)
—
—
(1,161,348)
—
—
—
(767,870)
—
—
(1,161,348)
—
(767,870)
273,549,727
1,161,348
(330,269,317)
532,422,244
—
(449,089,368)
352,463,997
767,870
(349,151,544)
Distributions to Shareholders from:
Net Investment Income
Realized Gain on Investments
Total Distributions to Shareholders
SHARE TRANSACTIONS
Proceeds from Shares Purchased
Value of Shares Purchased through Dividend Reinvestment
Cost of Shares Redeemed
102,938,709
—
(118,790,610)
Net Increase (Decrease) in Net Assets From Share
Transactions
(15,851,901)
(55,558,242)
83,332,876
4,080,323
Net Increase (Decrease) in Net Assets
NET ASSETS—BEGINNING OF PERIOD
(30,646,136)
82,191,326
(52,285,354)
134,476,680
88,374,078
21,581,309
2,556,017
19,025,292
$ 51,545,190
$ 82,191,326
$ 109,955,387
$ 21,581,309
$
$
$
$
NET ASSETS—END
OF
PERIOD
Undistributed Net Investment Income (Loss)—End
of Period
578,165
223,114
289,526
172,208
† Unaudited
96 |
THE
RYDEX
Inverse NASDAQ-100®
Strategy Fund
NASDAQ-100® Fund
Period
Ended
June 30,
2008†
$
(169,360)
(2,987,980)
Year
Ended
December 31,
2007
$
140,368
11,931,932
Period
Ended
June 30,
2008†
$
70,096
1,330,473
S&P 500
2x Strategy Fund
Year
Ended
December 31,
2007
$
Period
Ended
June 30,
2008†
814,033 $
101,419
(5,163,846)
(6,318,524)
NASDAQ-100®
2x Strategy Fund
Year
Ended
December 31,
2007
$
361,467
1,141,227
Period
Ended
June 30,
2008†
$
(69,828)
(7,423,346)
Year
Ended
December 31,
2007
$
205,829
(4,011,465)
(6,679,447)
(503,303)
940,116
(201,817)
(2,016,291)
(1,476,028)
(6,280,081)
4,523,444
(9,836,787)
11,568,997
2,340,685
(4,551,630)
(8,233,396)
26,666
(13,773,255)
717,808
—
—
(63,168)
—
—
—
(906,240)
—
—
—
(354,038)
(3,786,307)
—
—
(186,716)
—
—
(63,168)
—
(906,240)
—
(4,140,345)
—
(186,716)
138,704,226
—
(147,978,560)
352,847,814
63,168
(354,795,402)
196,440,585
—
(190,991,999)
1,210,258,728
906,240
(1,215,995,634)
132,980,004
—
(136,164,120)
206,969,261
4,140,345
(208,230,256)
219,869,698
—
(233,163,546)
1,067,742,482
186,716
(1,033,063,920)
(9,274,334)
(1,884,420)
5,448,586
(4,830,666)
(3,184,116)
2,879,350
(13,293,848)
34,865,278
(19,111,121)
82,492,496
9,621,409
72,871,087
7,789,271
13,640,087
(10,288,536)
23,928,623
(11,417,512)
36,428,922
(1,234,329)
37,663,251
(27,067,103)
65,068,982
35,396,370
29,672,612
$ 63,381,375
$ 82,492,496
$ 21,429,358
$
13,640,087
$ 25,011,410
$ 36,428,922
$ 38,001,879
$
65,068,982
$
$
$
$
66,793
$
$
$
$
42,493
(92,160)
77,200
136,889
101,419
THE
—
RYDEX
(27,335)
| 97
(continued)
Mid-Cap
1.5x Strategy Fund
Period
Ended
June 30,
2008†
Inverse Mid-Cap
Strategy Fund
Year
Ended
December 31,
2007
Period
Ended
June 30,
2008†
Year
Ended
December 31,
2007
FROM OPERATIONS
on Investments
$
24,237
(2,268,489)
$
452,666
(299,351)
$
18,553
(44,769)
$
105,883
(236,703)
60,845
(2,126,958)
148,280
(7,630)
(2,183,407)
(1,973,643)
122,064
(138,450)
—
—
(470,418)
(3,554,938)
—
—
(119,992)
—
—
(4,025,356)
—
(119,992)
74,906,140
—
(76,382,933)
388,695,373
4,025,356
(397,814,356)
39,589,665
—
(36,497,429)
106,240,775
119,992
(109,031,843)
Transactions
(1,476,793)
(5,093,627)
3,092,236
(2,671,076)
(3,660,200)
27,893,318
(11,092,626)
38,985,944
3,214,300
3,029,216
(2,929,518)
5,958,734
SHARE TRANSACTIONS
NET ASSETS—END
OF
PERIOD
Undistributed Net Investment Income—End of Period
$ 24,233,118
$ 27,893,318
$ 6,243,516
$
3,029,216
$
$
$
$
18,025
24,237
—
36,578
† Unaudited
98 |
THE
RYDEX
Russell 2000®
2x Strategy Fund
Period
Ended
June 30,
2008†
$
3,227
(747,666)
Russell 2000®
1.5x Strategy Fund
Year
Ended
December 31,
2007
$
54,693
(987,631)
Period
Ended
June 30,
2008†
$
29,446
(2,536,601)
Inverse Russell 2000®
Strategy Fund
Year
Ended
December 31,
2007
$
Period
Ended
June 30,
2008†
405,819 $
(156,131)
43,860
544,890
Government Long Bond
1.2x Strategy Fund
Year
Ended
December 31,
2007
$
344,137
286,881
$
Period
Ended
June 30,
2008†
Year
Ended
December 31,
2007
883,764
(665,432)
$
1,898,755
1,053,605
(127,071)
42,780
(505,076)
(3,591,433)
805,589
(92,722)
453,723
1,248,169
(871,510)
(890,158)
(3,012,231)
(3,341,745)
1,394,339
538,296
672,055
4,200,529
—
—
(1,234)
(55,803)
—
—
(459,551)
(1,542,506)
—
—
(382,872)
—
(883,764)
—
(1,898,770)
—
—
(57,037)
—
(2,002,057)
—
(382,872)
(883,764)
(1,898,770)
35,658,000
—
(37,037,380)
51,531,314
57,037
(49,020,342)
139,458,354
—
(142,893,481)
367,099,100
2,002,057
(414,989,632)
133,800,533
—
(136,441,856)
207,784,835
382,872
(209,025,910)
269,502,513
883,764
(260,799,012)
463,570,772
1,898,770
(465,941,934)
(1,379,380)
2,568,009
(3,435,127)
(45,888,475)
(2,641,323)
(858,203)
9,587,265
(472,392)
(2,250,890)
6,204,604
1,620,814
4,583,790
(6,447,358)
21,879,489
(51,232,277)
73,111,766
(1,246,984)
11,534,667
(702,779)
12,237,446
9,375,556
52,249,557
1,829,367
50,420,190
$ 3,953,714
$ 6,204,604
$ 15,432,131
$ 21,879,489
$ 10,287,683
$ 11,534,667
$ 61,625,113
$ 52,249,557
$
$
$
$
$
$
$
$
57,963
54,736
54,436
24,990
88,106
THE
44,246
RYDEX
—
—
| 99
(continued)
Inverse Government
Long Bond Strategy Fund
Period
Ended
June 30,
2008†
Europe
1.25x Strategy Fund
Year
Ended
December 31,
2007
Period
Ended
June 30,
2008†
Year
Ended
December 31,
2007
FROM OPERATIONS
on Investments
$
(110,484)
(641,798)
$
652,342
(1,973,476)
$
612,605
(6,155,049)
$
1,851,030
2,171,852
(132,586)
(827,112)
(4,550,253)
1,011,109
(884,868)
(2,148,246)
(10,092,697)
5,033,991
—
—
(725,228)
—
—
—
(1,982,475)
(8,037,155)
—
(725,228)
—
(10,019,630)
178,977,020
725,228
(188,463,694)
46,246,024
—
(88,003,401)
219,995,801
10,019,630
(231,687,377)
SHARE TRANSACTIONS
209,779,741
—
(210,077,487)
Transactions
(297,746)
(8,761,446)
(41,757,377)
(1,671,946)
(1,182,614)
17,611,452
(11,634,920)
29,246,372
(51,850,074)
82,832,659
(6,657,585)
89,490,244
$ 16,428,838
$ 17,611,452
$ 30,982,585
$ 82,832,659
$
$
$
$
NET ASSETS—END
OF
PERIOD
of Period
(53,070)
57,414
766,918
154,313
† Unaudited
100 |
THE
RYDEX
Japan
1.25x Strategy Fund
Period
Ended
June 30,
2008†
$
59,131
(1,617,525)
Dow
2x Strategy Fund
Year
Ended
December 31,
2007
$
808,841
(2,407,314)
Period
Ended
June 30,
2008†
$
152,165
(6,629,476)
Inverse Dow
2x Strategy Fund
Year
Ended
December 31,
2007
$
Period
Ended
June 30,
2008†
442,216 $
(1,498,294)
53,227
3,130,926
Small-Cap
Value Fund
Year
Ended
December 31,
2007
$
580,349
(2,623,725)
Period
Ended
June 30,
2008†
$
91,518
(2,300,253)
Year
Ended
December 31,
2007
$
117,534
(875,146)
42,820
(1,209,398)
(5,122,923)
(41,827)
2,206,677
807,666
(374,629)
(2,300,846)
(1,515,574)
(2,807,871)
(11,600,234)
(1,097,905)
5,390,830
(1,235,710)
(2,583,364)
(3,058,458)
—
—
(1,177,302)
—
—
—
(428,235)
(4,564,672)
—
—
(650,488)
—
—
—
(29,154)
(2,089,925)
—
(1,177,302)
—
(4,992,907)
—
(650,488)
—
(2,119,079)
48,511,038
—
(49,026,891)
136,271,443
1,177,302
(148,405,041)
105,905,604
—
(109,017,988)
210,572,797
4,992,907
(210,015,349)
140,427,590
—
(137,192,330)
148,035,616
650,488
(151,968,697)
21,133,446
—
(19,111,027)
47,931,806
2,119,079
(69,287,218)
(515,853)
(10,956,296)
(3,112,384)
5,550,355
3,235,260
(3,282,593)
2,022,419
(19,236,333)
(2,031,427)
15,568,221
(14,941,469)
30,509,690
(14,712,618)
44,824,796
(540,457)
45,365,253
8,626,090
11,884,610
(5,168,791)
17,053,401
(560,945)
9,709,650
(24,413,870)
34,123,520
$ 13,536,794
$ 15,568,221
$ 30,112,178
$ 44,824,796
$ 20,510,700
$ 11,884,610
$ 9,148,705
$ 9,709,650
$
$
$
$
$
$
$
$
135,499
76,368
288,273
136,108
112,809
THE
59,582
RYDEX
209,053
117,535
| 101
(concluded)
Mid-Cap
Value Fund
Period
Ended
June 30,
2008†
Large-Cap
Value Fund
Year
Ended
December 31,
2007
Period
Ended
June 30,
2008†
Year
Ended
December 31,
2007
FROM OPERATIONS
on Investments
$
134,351
(2,077,381)
$
282,228
1,578,360
$
264,918
(5,143,096)
$
672,543
5,047,817
(318,701)
(2,259,896)
(1,896,811)
(5,927,846)
(2,261,731)
(399,308)
(6,774,989)
(207,486)
—
—
(366,943)
(17,776)
—
—
(639,172)
(4,733,675)
—
(384,719)
—
(5,372,847)
119,801,427
384,719
(131,658,649)
49,750,309
—
(48,191,549)
188,096,688
5,372,847
(246,412,645)
SHARE TRANSACTIONS
17,388,567
—
(20,145,415)
Transactions
(2,756,848)
(11,472,503)
1,558,760
(52,943,110)
(5,018,579)
15,997,792
(12,256,530)
28,254,322
(5,216,229)
24,799,284
(58,523,443)
83,322,727
$ 10,979,213
$ 15,997,792
$ 19,583,055
$ 24,799,284
$
$
$
$
NET ASSETS—END
OF
PERIOD
of Period
134,351
—
438,190
173,272
† Unaudited
102 |
THE
RYDEX
Small-Cap
Growth Fund
Period
Ended
June 30,
2008†
$
14,631
(1,368,705)
Mid-Cap
Growth Fund
Year
Ended
December 31,
2007
$
(185,034)
(146,038)
Period
Ended
June 30,
2008†
$
(116,211)
(2,610,300)
Large-Cap
Growth Fund
Year
Ended
December 31,
2007
$
(181,849)
(828,789)
Period
Ended
June 30,
2008†
$
(74,702)
(2,605,077)
U.S. Government
Money Market Fund
Year
Ended
December 31,
2007
$
(150,559)
(1,379,474)
Period
Ended
June 30,
2008†
$
2,477,304
—
Year
Ended
December 31,
2007
$
10,144,753
—
(160,852)
(1,001,524)
1,058,819
1,414,199
(1,511,350)
1,634,631
—
—
(1,514,926)
(1,332,596)
(1,667,692)
403,561
(4,191,129)
104,598
2,477,304
10,144,753
—
—
—
(1,579,622)
—
—
—
(2,700,731)
—
—
—
(715,291)
(2,477,304)
—
(10,144,753)
—
—
(1,579,622)
—
(2,700,731)
—
(715,291)
(2,477,304)
(10,144,753)
24,308,734
—
(25,962,302)
119,144,626
1,579,622
(128,683,642)
59,379,417
—
(52,749,360)
182,659,368
2,700,731
(172,563,004)
44,108,506
—
(50,189,443)
153,983,619
715,291
(141,380,688)
499,840,786
2,477,304
(460,632,125)
1,479,694,976
10,144,753
(1,420,642,029)
(1,653,568)
(7,959,394)
6,630,057
12,797,095
(6,080,937)
13,318,222
41,685,965
69,197,700
(3,168,494)
12,427,964
(10,871,612)
23,299,576
4,962,365
25,939,708
10,499,925
15,439,783
(10,272,066)
36,275,146
12,707,529
23,567,617
41,685,965
277,345,537
69,197,700
208,147,837
$ 9,259,470
$ 12,427,964
$ 30,902,073
$ 25,939,708
$ 26,003,080
$ 36,275,146
$ 319,031,502
$ 277,345,537
$
$
$
$
$
$
$
$
14,631
—
(116,211)
—
(74,702)
THE
—
RYDEX
7,497
7,497
| 103
104 |
THE
RYDEX
Period Ended
Nova Fund
June 30, 2008Δ
$10.06
$ .05
December 31, 2007
10.09
.12
December 31, 2006
8.56
.11
December 31, 2005
8.26
.05
December 31, 2004
7.21
.03
December 31, 2003
5.18
.01
June 30, 2008Δ
42.21
.14
December 31, 2007
43.90
1.35
December 31, 2006††† 51.50
1.70
December 31, 2005††† 51.90
.80
December 31, 2004††† 57.70
(.20)
December 31, 2003††† 75.70
(.40)
NASDAQ-100® Fund
June 30, 2008Δ
18.12
(.04)
December 31, 2007
15.39
.03
December 31, 2006
14.55
(.07)
December 31, 2005
14.39
(.09)
December 31, 2004
13.16
(.02)
December 31, 2003
9.05
(.13)
June 30, 2008Δ
16.99
.06
December 31, 2007
19.79
.64
December 31, 2006
21.51
.74
December 31, 2005
21.24
.33
December 31, 2004
24.09
(.08)
December 31, 2003
39.04
(.22)
June 30, 2008Δ
19.24
.05
December 31, 2007
21.71
.26
December 31, 2006
18.37
.23
December 31, 2005
19.83
.10
December 31, 2004
21.59
.02
December 31, 2003
16.09
(.11)
June 30, 2008Δ
29.98
(.04)
December 31, 2007
23.46
.13
December 31, 2006
22.39
.03
December 31, 2005
23.09
(.09)
December 31, 2004
21.73
(.06)
December 31, 2003
11.90
(.21)
NET ASSET
VALUE,
BEGINNING
OF PERIOD
$ (1.90)
.12
1.65
.33
1.05
2.03
5.57
.35
(3.90)
(.40)
(5.80)
(18.00)
(2.18)
2.74
.84
.16
1.23
4.11
1.84
(2.23)
(.33)
.27
(2.85)
(14.55)
(5.01)
.18
4.35
.63
3.00
8.84
(7.98)
6.62
1.09
(.70)
2.70
11.74
$ (1.95)
—
1.54
.28
1.02
2.02
5.43
(1.00)
(5.60)
(1.20)
(5.60)
(17.60)
(2.14)
2.71
.91
.25
1.25
4.24
1.78
(2.87)
(1.07)
(.06)
(2.77)
(14.33)
(5.06)
(.08)
4.12
.53
2.98
8.95
(7.94)
6.49
1.06
(.61)
2.76
11.95
Net Increase
Net Realized
(Decrease)
Net
and
in Net Asset
Investment
Unrealized
Value
Income
Gains (Losses) Resulting from
(Loss)† on Investments Operations
—
(.15)
(.12)
(.03)
(—)§
—
—
(.10)
(.02)
—
(.97)
—
—
(.23)
(.20)
(.02)
—
—
—
(.57)
(1.39)
—
—
—
—
(.01)
—
—
—
—
—
(2.04)
(3.70)
—
—
—
$
Distributions
from Net
Investment
Income
—
—
—
—
(.06)
(1.91)
—
(2.42)
(.81)
(2.07)
(4.76)
(3.34)
—
—
—
—
—
(.40)
—
—
—
—
—
—
—
—
—
—
—
—
$ —
—
—
—
—
—
Distributions
from Net
Realized
Gains
—
—
—
—
(.31)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ —
—
—
—
—
—
Distributions
from
Return
of Capital
—
(.15)
(.12)
(.03)
(—)§
—
—
(.10)
(.02)
—
(1.34)
(1.91)
—
(2.65)
(1.01)
(2.09)
(4.76)
(3.34)
—
(.57)
(1.39)
—
—
(.40)
—
(.01)
—
—
—
—
—
(2.04)
(3.70)
—
—
—
$
Total
Distributions
(7.98)
6.52
1.07
(.70)
1.36
9.83
(5.01)
(2.47)
3.34
(1.46)
(1.76)
5.50
1.84
(2.80)
(1.72)
.27
(2.85)
(14.95)
(2.18)
2.73
.84
.16
1.23
4.11
5.57
(1.69)
(7.60)
(.40)
(5.80)
(18.00)
$ (1.90)
(.03)
1.53
.30
1.05
2.03
22.00
29.98
23.46
22.39
23.09
21.73
14.23
19.24
21.71
18.37
19.83
21.59
18.83
16.99
19.79
21.51
21.24
24.09
15.94
18.12
15.39
14.55
14.39
13.16
47.78
42.21
43.90
51.50
51.90
57.70
$ 8.16
10.06
10.09
8.56
8.26
7.21
Net Increase NET ASSET
(Decrease) in
VALUE,
Net Asset
END OF
Value
PERIOD
(26.62)%
28.20%
4.86%
(3.03)%
14.21%
98.63%
(26.04)%
0.61%
23.70%
3.38%
16.90%
54.94%
10.83%
(11.28)%
(1.40)%
1.27%
(11.83)%
(37.37)%
(12.03)%
17.82%
5.77%
1.11%
9.35%
45.41%
13.20%
0.83%
(7.50)%
(0.77)%
(10.05)%
(23.78)%
(18.89)%
1.13%
19.27%
3.97%
14.62%
39.19%
0.59%**
3.04%
3.29%
1.46%
(0.28)%
(0.59)%
—
—
—
—
—
—
—
—
—
—
—
—
0.67%** 90%
1.12%
104%
1.13%
168%
0.55%
585%
0.09%
974%
(0.55)% 1,085%
0.62%**
3.40%
3.35%
1.49%
(0.35)%
(0.73)%
1.69%** (0.33)%** 43%
1.66%
0.45%
203%
1.65%
0.14%
250%
1.65%
(0.42)%
343%
1.65%
(0.29)%
662%
1.71%
(1.10)%
959%
1.64%**
1.62%
1.64%
1.65%
1.65%
1.69%
1.66%**
1.68%
1.64%
1.63%
1.64%
1.68%
38,002
65,069
29,673
44,313
57,599
40,632
25,011
36,429
37,663
25,397
29,053
30,428
21,429
13,640
23,929
19,648
23,928
34,563
63,381
82,492
72,871
102,487
191,476
127,836
109,955
21,581
19,025
32,505
19,076
17,822
$ 51,545
82,191
134,477
132,018
130,200
81,816
Net Assets,
Portfolio
End of
Turnover Period (000’s
Rate
omitted)
1.06%** 91%
1.12%
94%
1.18%
211%
0.60%
381%
0.41%
654%
0.09%
729%
Net
Investment
Income
(Loss)
1.52%** (0.53)%** 60%
1.51%
0.18%
110%
1.49%
(0.50)%
152%
1.50%
(0.68)%
294%
1.47%
(0.17)%
418%
1.53%
(1.20)%
482%
1.61%**
1.63%
1.63%
1.70%
1.62%
1.67%
1.49%**
1.46%
1.48%
1.53%
1.46%
1.54%
Total
Investment
Total
Return†† Expenses
RATIOS TO
AVERAGE NET ASSETS:
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.
FINANCIAL HIGHLIGHTS
THE
RYDEX
| 105
NET ASSET
VALUE,
BEGINNING
Period Ended
OF PERIOD
June 30, 2008Δ
$21.72
$ .02
$ (1.93)
December 31, 2007
24.20
.28
.65
December 31, 2006
30.15
.11
3.23
December 31, 2005
26.50
(.02)
3.75
December 31, 2004
24.74
(.09)
4.96
December 31, 2003
17.77
(.12)
9.44
June 30, 2008Δ
35.03
.10
1.10
December 31, 2007
36.96
1.06
(1.81)
December 31, 2006
39.15
1.32
(2.83)
December 31, 2005
44.03
.70
(4.31)
December 31, 2004*
50.00
(.06)
(5.91)
June 30, 2008Δ
22.43
.01
(5.00)
December 31, 2007
25.97
.25
(3.52)
December 31, 2006*
25.00
.05
.96
June 30, 2008Δ
34.20
.05
(5.41)
December 31, 2007
41.14
.49
(3.26)
December 31, 2006
34.14
.19
6.93
December 31, 2005
33.65
.01
1.31
December 31, 2004
29.75
(.10)
6.95
December 31, 2003
20.11
(.18)
13.11
June 30, 2008Δ
34.66
.11
2.88
December 31, 2007
34.61
1.10
.76
December 31, 2006
40.60
1.30
(6.16)
December 31, 2005
42.83
.65
(1.98)
December 31, 2004*
50.00
(.10)
(7.07)
June 30, 2008Δ
12.24
.19
(.11)
December 31, 2007
11.56
.41
.68
December 31, 2006
12.38
.42
(.82)
December 31, 2005
11.88
.41
.50
December 31, 2004
11.67
.40
.54
December 31, 2003
13.08
.41
(.52)
June 30, 2008Δ
19.58
(.11)
(.22)
December 31, 2007
21.55
.70
(1.67)
December 31, 2006
20.80
.69
.97
December 31, 2005
21.95
(.07)
(1.08)
December 31, 2004
24.82
(.66)
(1.98)
December 31, 2003*
25.00
(.13)
(.05)
$ —
(.40)
(.13)
—
—
—
—
(1.18)
(.68)
(1.27)
—
—
(.01)
(.04)
—
(.96)
(.12)
(.83)
—
—
—
(1.81)
(1.13)
(.90)
—
(.19)
(.41)
(.42)
(.41)
(.40)
(.41)
—
(1.00)
(.91)
—
—
—
1.20
(.75)
(1.51)
(3.61)
(5.97)
(4.99)
(3.27)
1.01
(5.36)
(2.77)
7.12
1.32
6.85
12.93
2.99
1.86
(4.86)
(1.33)
(7.17)
.08
1.09
(.40)
.91
.94
(.11)
(.33)
(.97)
1.66
(1.15)
(2.64)
(.18)
Distributions
from Net
Investment
Income
$ (1.91)
.93
3.34
3.73
4.87
9.32
Net Increase
Net Realized
(Decrease)
Net
and
in Net Asset
Investment
Unrealized
Value
Income
Gains (Losses) Resulting from
—
—
—
—
(.23)
—
—
—
—
—
(.33)
(.89)
—
—
—
—
—
—
(3.21)
—
—
(2.95)
(3.29)
—
(.26)
—
—
—
—
—
—
$ —
(3.01)
(9.16)
(.08)
(3.11)
(2.35)
Distributions
from Net
Realized
Gains
—
(1.00)
(.91)
—
(.23)
—
(.19)
(.41)
(.42)
(.41)
(.73)
(1.30)
—
(1.81)
(1.13)
(.90)
—
—
(4.17)
(.12)
(.83)
(2.95)
(3.29)
—
(.27)
(.04)
—
(1.18)
(.68)
(1.27)
—
$ —
(3.41)
(9.29)
(.08)
(3.11)
(2.35)
Total
Distributions
(.33)
(1.97)
.75
(1.15)
(2.87)
(.18)
(.11)
.68
(.82)
.50
.21
(1.41)
2.99
.05
(5.99)
(2.23)
(7.17)
(5.36)
(6.94)
7.00
.49
3.90
9.64
(4.99)
(3.54)
.97
1.20
(1.93)
(2.19)
(4.88)
(5.97)
$ (1.91)
(2.48)
(5.95)
3.65
1.76
6.97
Net Increase
(Decrease) in
Net Asset
Value
19.25
19.58
21.55
20.80
21.95
24.82
12.13
12.24
11.56
12.38
11.88
11.67
37.65
34.66
34.61
40.60
42.83
28.84
34.20
41.14
34.14
33.65
29.75
17.44
22.43
25.97
36.23
35.03
36.96
39.15
44.03
$ 19.81
21.72
24.20
30.15
26.50
24.74
NET ASSET
VALUE,
END OF
PERIOD
(1.69)%
(4.51)%
8.11%
(5.24)%
(10.67)%
(0.72)%
0.65%
9.77%
(3.14)%
7.71%
8.42%
(0.64)%
8.63%
5.37%
(11.95)%
(3.07)%
(14.34)%
(15.67)%
(6.74)%
20.85%
3.91%
25.20%
64.28%
(22.25)%
(12.59)%
4.06%
3.43%
(1.98)%
(3.83)%
(8.16)%
(11.94)%
(8.79)%
3.60%
10.46%
14.07%
22.14%
52.43%
Total
Investment
Return††
1.64%**
1.67%
1.65%
1.64%
1.62%**
1.62%**
1.64%
1.64%
1.65%
1.64%
1.70%
Operating
Expenses
5.06%**
3.83%
5.12%
5.11%
5.02%
1.69%**
1.18%**
1.20%
1.20%
1.18%
1.21%
1.23%
1.66%**
1.67%
1.64%
1.63%
1.65%**
1.64%**
1.66%
1.64%
1.63%
1.65%
1.70%
129%
174%
60%
—
—
—
—
—
3.10%**
3.60%
3.66%
3.30%
3.36%
3.26%
0.61%**
3.19%
3.48%
1.49%
(0.29)%**
737%
1,367%
1,339%
1,284%
1,318%
1,272%
—
—
—
—
—
0.34%** 251%
1.16%
354%
0.49%
380%
0.04%
404%
(0.32)% 1,171%
(0.66)% 1,135%
0.14%**
0.95%
1.02%**
0.58%**
3.04%
3.49%
1.65%
(0.17)%**
0.20%**
85%
1.05%
368%
0.34%
478%
(0.05)%
573%
(0.37)%
866%
(0.54)% 1,665%
16,429
17,611
29,246
29,671
41,098
22,355
61,625
52,250
50,420
60,160
48,709
65,358
10,288
11,535
12,237
11,850
4,344
15,432
21,879
73,112
38,589
112,649
122,995
3,954
6,205
4,584
6,244
3,029
5,959
2,846
1,319
$ 24,233
27,893
38,986
51,197
34,162
18,544
Net Assets,
Portfolio
End of
Rate
omitted)
1.62%** (1.13)%** 1,493%
1.63%
3.17% 1,123%
1.63%
3.08%
597%
1.63% (0.33)%
589%
1.63% (2.86)%
—
1.69%** (0.74)%**
—
1.18%**
1.20%
1.20%
1.18%
1.21%
1.23%
1.66%**
1.67%
1.64%
1.63%
1.65%**
1.64%**
1.66%
1.64%
1.63%
1.65%
1.70%
1.64%** 1.64%**
1.64%
1.64%
1.64%** 1.64%**
1.64%**
1.67%
1.65%
1.64%
1.62%**
1.62%**
1.64%
1.64%
1.65%
1.64%
1.70%
Total
Expenses
Net
Investment
Income
(Loss)
RATIOS TO
AVERAGE NET ASSETS:
F I N A N C I A L H I G H L I G H T S (continued)
106 |
THE
RYDEX
June 30, 2008Δ
$29.95
December 31, 2007
29.60
December 31, 2006
23.84
December 31, 2005
22.62
December 31, 2004
22.87
December 31, 2003
19.52
June 30, 2008Δ
22.73
December 31, 2007
27.13
December 31, 2006
33.42
December 31, 2005
27.77
December 31, 2004
25.17
December 31, 2003
18.29
June 30, 2008Δ
25.70
December 31, 2007
26.89
December 31, 2006
23.10
December 31, 2005
25.89
December 31, 2004*
25.00
June 30, 2008Δ
28.79
December 31, 2007
33.34
December 31, 2006
43.20
December 31, 2005
43.22
December 31, 2004*
50.00
June 30, 2008Δ
18.22
December 31, 2007
28.60
December 31, 2006
25.67
December 31, 2005
28.84
December 31, 2004*
25.00
Mid-Cap Value Fund
June 30, 2008Δ
20.84
December 31, 2007
22.38
December 31, 2006
19.27
December 31, 2005
27.08
December 31, 2004*
25.00
June 30, 2008Δ
25.37
December 31, 2007
31.78
December 31, 2006
27.90
December 31, 2005
27.68
December 31, 2004*
25.00
Period Ended
NET ASSET
VALUE,
BEGINNING
OF PERIOD
$ (5.53)
3.26
6.31
1.23
3.71
8.58
(1.72)
(3.83)
.50
5.17
2.74
7.04
(7.44)
1.93
6.58
(1.25)
2.03
8.60
(4.06)
(10.75)
(.06)
(5.71)
(3.02)
(5.97)
4.74
1.13
4.50
(3.28)
(1.29)
3.01
2.28
3.80
(6.36)
(2.03)
4.53
.95
3.00
$ .38
.70
.70
.21
(.05)
(.17)
.09
.88
1.02
.48
(.14)
(.16)
.10
.36
.40
.24
.14
.08
1.02
1.35
.74
(.03)
.13
.19
.18
(.05)
.01
.18
.21
.28
.07
—
.26
.42
.39
.21
.12
Net
Investment
Income
(Loss)†
Net Realized
and
Unrealized
Gains (Losses)
on Investments
(6.10)
(1.61)
4.92
1.16
3.12
(3.10)
(1.08)
3.29
2.35
3.80
(2.89)
(5.78)
4.92
1.08
4.51
8.68
(3.04)
(9.40)
.68
(5.74)
(7.34)
2.29
6.98
(1.01)
2.17
(1.63)
(2.95)
1.52
5.65
2.60
6.88
$ (5.15)
3.96
7.01
1.44
3.66
8.41
Net Increase
(Decrease)
in Net Asset
Value
Resulting from
Operations
$
—
(.57)
(.25)
(.15)
(.11)
—
(.44)
(.18)
(.20)
(—)§
—
(.06)
(.17)
—
(.01)
—
(1.51)
(.46)
(.70)
—
—
(.30)
(.15)
(.17)
(1.16)
—
(1.45)
(1.29)
—
—
—
—
(.71)
(.48)
(.09)
(3.82)
—
Distributions
from Net
Investment
Income
$
—
(4.23)
(.79)
(.79)
(.33)
—
(.02)
—
(9.96)
(1.72)
—
(4.54)
(1.82)
(4.25)
(.66)
—
—
—
—
(1.04)
—
(3.18)
(3.04)
(1.61)
(.12)
—
—
(6.52)
—
—
—
—
(2.90)
(.77)
(.13)
(.09)
(5.06)
Distributions
from Net
Realized
Gains
—
(4.80)
(1.04)
(.94)
(.44)
—
(.46)
(.18)
(10.16)
(1.72)
—
(4.60)
(1.99)
(4.25)
(.67)
—
(1.51)
(.46)
(.70)
(1.04)
—
(3.48)
(3.19)
(1.78)
(1.28)
—
(1.45)
(7.81)
—
—
—
$ —
(3.61)
(1.25)
(.22)
(3.91)
(5.06)
Total
Distributions
(6.10)
(6.41)
3.88
.22
2.68
(3.10)
(1.54)
3.11
(7.81)
2.08
(2.89)
(10.38)
2.93
(3.17)
3.84
8.68
(4.55)
(9.86)
(.02)
(6.78)
(7.34)
(1.19)
3.79
(2.79)
.89
(1.63)
(4.40)
(6.29)
5.65
2.60
6.88
$ (5.15)
.35
5.76
1.22
(.25)
3.35
Net Increase
(Decrease) in
Net Asset
Value
19.27
25.37
31.78
27.90
27.68
17.74
20.84
22.38
19.27
27.08
15.33
18.22
28.60
25.67
28.84
37.47
28.79
33.34
43.20
43.22
18.36
25.70
26.89
23.10
25.89
21.10
22.73
27.13
33.42
27.77
25.17
$24.80
29.95
29.60
23.84
22.62
22.87
NET ASSET
VALUE,
END OF
PERIOD
(24.04)%
(5.37)%
17.66%
4.19%
12.49%
(14.88)%
(4.85)%
17.08%
8.32%
15.20%
(15.86)%
(20.36)%
19.21%
3.64%
18.03%
30.15%
(8.99)%
(21.77)%
1.63%
(11.47)%
(28.56)%
8.15%
30.54%
(3.81)%
8.65%
(7.17)%
(11.23)%
5.14%
20.35%
10.33%
37.62%
(17.20)%
13.06%
29.51%
6.36%
16.15%
43.08%
Total
Investment
Return††
1.48%**
1.49%
1.50%
1.50%
1.45%**
1.48%**
1.49%
1.49%
1.48%
1.48%**
1.47%**
1.49%
1.49%
1.47%
1.46%**
1.65%**
1.66%
1.64%
1.65%
1.62%**
1.65%**
1.63%
1.65%
1.67%
1.63%**
1.62%**
1.64%
1.63%
1.70%
1.63%
1.69%
1.66%**
1.63%
1.65%
1.63%
1.64%
1.70%
Total
Expenses
2.28%**
1.28%
1.29%
0.77%
0.69%**
1.79%**
0.87%
1.37%
0.26%
0.01%**
1.53%**
0.66%
0.64%
(0.16)%
0.07%**
0.52%**
3.36%
3.61%
1.67%
(0.09)%**
0.93%**
1.22%
1.52%
1.03%
0.91%**
0.79%**
3.32%
2.99%
1.72%
(0.50)%
(0.75)%
2.88%**
2.18%
2.55%
0.94%
(0.23)%
(0.75)%
Net
Investment
Income
(Loss)
RATIOS TO
AVERAGE NET ASSETS:
F I N A N C I A L H I G H L I G H T S (continued)
170%
307%
401%
493%
983%
83%
358%
307%
1,133%
1,173%
129%
241%
433%
825%
507%
—
—
—
—
—
30%
105%
224%
666%
907%
—
—
—
—
—
—
23%
220%
219%
399%
—
—
Portfolio
Turnover
Rate
19,583
24,799
83,323
24,547
11,144
10,979
15,998
28,254
14,232
19,479
9,149
9,710
34,124
19,035
47,274
20,511
11,885
17,053
7,257
3,184
30,112
44,825
45,365
12,920
10,419
13,537
15,568
30,510
55,219
14,228
11,541
$ 30,983
82,833
89,490
25,954
54,994
38,443
Net Assets,
End of
Period (000’s
omitted)
THE
RYDEX
| 107
* Since the commencement of operations:
May 1, 2003 – Inverse Government Long Bond Strategy Fund;
May 3, 2004 – Inverse Mid-Cap Strategy Fund, Inverse Russell 2000® Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund, Small-Cap Value Fund,
Mid-Cap Value Fund, Large-Cap Value Fund, Small-Cap Growth Fund, Mid-Cap Growth Fund, and Large-Cap Growth Fund;
October 27, 2006 – Russell 2000® 2x Strategy Fund.
** Annualized
† Calculated using the average daily shares outstanding for the year.
†† Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
††† Per share amounts for periods ended December 31, 2003 – December 31, 2006 have been restated to reflect a 1:10 reverse stock split effective April 23, 2007.
§ Less than $.01 per share.
Operating Expenses exclude interest expense from securities sold short.
Δ Unaudited
RATIOS TO
AVERAGE NET ASSETS:
Net Increase
Net Realized
(Decrease)
NET ASSET
Net
and
in Net Asset Distributions Distributions
Net Increase NET ASSET
Net
Net Assets,
VALUE,
Investment
Unrealized
Value
from Net
from Net
(Decrease) in
VALUE,
Total
Investment Portfolio
End of
BEGINNING
Income
Gains (Losses) Resulting from Investment
Realized
Total
Net Asset
END OF
Investment
Total
Net
Income
Period Ended
OF PERIOD
Income
Gains
Distributions
Value
PERIOD
Return††
Expenses Expenses
(Loss)
Rate
omitted)
June 30, 2008Δ
$27.07
$ .03
$(3.00)
$(2.97)
$ —
$
—
$
—
$(2.97)
$24.10
(10.97)%
1.48%** 1.48%** 0.23%** 155%
$ 9,259
December 31, 2007
29.92
(.28)
.30
.02
—
(2.87)
(2.87)
(2.85)
27.07
(0.11)%
1.49%
1.49%
(0.90)%
573%
12,428
December 31, 2006
28.64
(.31)
2.54
2.23
—
(.95)
(.95)
1.28
29.92
7.73%
1.49%
1.49%
(1.01)%
769%
23,300
December 31, 2005
28.55
(.21)
2.00
1.79
—
(1.70)
(1.70)
.09
28.64
6.20%
1.50%
1.50%
(0.72)%
737%
24,308
December 31, 2004*
25.00
(.17)
4.12
3.95
—
(.40)
(.40)
3.55
28.55
15.82%
1.46%** 1.46%** (0.93)%** 733%
30,269
Mid-Cap Growth Fund
June 30, 2008Δ
29.51
(.13)
(.71)
(.84)
—
—
—
(.84)
28.67
(2.85)%
1.47%** 1.47%** (0.91)%** 183%
30,902
December 31, 2007
29.33
(.19)
2.69
2.50
—
(2.32)
(2.32)
.18
29.51
8.42%
1.48%
1.48%
(0.61)%
591%
25,940
December 31, 2006
30.24
(.28)
1.26
.98
—
(1.89)
(1.89)
(.91)
29.33
3.13%
1.47%
1.47%
(0.90)%
462%
15,440
December 31, 2005
27.13
(.20)
3.31
3.11
—
—
—
3.11
30.24
11.46%
1.52%
1.52%
(0.70)% 1,178%
53,035
December 31, 2004*
25.00
(.13)
2.26
2.13
—
—
—
2.13
27.13
8.52%
1.46%** 1.46%** (0.75)%** 875%
20,702
June 30, 2008Δ
27.36
(.07)
(2.21)
(2.28)
—
—
—
(2.28)
25.08
(8.33)%
1.48%** 1.48%** (0.54)%** 136%
26,003
December 31, 2007
26.68
(.16)
1.46
1.30
—
(.62)
(.62)
.68
27.36
4.87%
1.48%
1.48%
(0.57)%
521%
36,275
December 31, 2006
25.69
(.17)
1.56
1.39
—
(.40)
(.40)
.99
26.68
5.40%
1.49%
1.49%
(0.66)%
612%
23,568
December 31, 2005
25.75
(.01)
.47
.46
(.02)
(.50)
(.52)
(.06)
25.69
1.77%
1.52%
1.52%
(0.03)% 1,111%
22,538
December 31, 2004*
25.00
.36
.71
1.07
(.15)
(.17)
(.32)
.75
25.75
4.26%
1.46%** 1.46%**
2.12%** 1,087%
20,012
June 30, 2008Δ
1.00
.01
—
.01
(.01)
—
(.01)
—
1.00
0.76%
1.18%** 1.18%** 1.54%**
—
319,032
December 31, 2007
1.00
.04
—
.04
(.04)
—
(.04)
—
1.00
3.90%
1.19%
1.19%
3.80%
—
277,346
December 31, 2006
1.00
.04
—
.04
(.04)
—
(.04)
—
1.00
3.82%
1.19%
1.19%
3.78%
—
208,148
December 31, 2005
1.00
.02
—
.02
(.02)
—
(.02)
—
1.00
2.00%
1.17%
1.17%
1.96%
—
185,365
December 31, 2004
1.00
—§
—
—
(—)§
—
(—)§
—
1.00
0.23%
1.19%
1.10%
0.20%
—
167,678
December 31, 2003
1.00
—§
—
—
(—)§
—
(—)§
—
1.00
0.01%
1.22%
1.11%
0.01%
—
232,493
F I N A N C I A L H I G H L I G H T S (concluded)
N O T E S T O F I N A N C I A L S TAT E M E N T S
1. Organization and Significant Accounting Policies
Organization
The Rydex Variable Trust (the “Trust”), a Delaware business
trust, is registered with the SEC under the Investment
Company Act of 1940 (the “1940 Act”) as a non-diversified,
open-ended investment company and is authorized to issue
an unlimited number of shares (no par value). The Trust
offers shares of the Funds to insurance companies for their
variable annuity and variable life insurance contracts.
At June 30, 2008, the Trust consisted of fifty-seven separate
Funds: twenty-three Benchmark Funds, one Money Market
Fund, ten Alternative Strategy Funds, seventeen Sector
Funds, three Essential Portfolio Funds and three CLS
AdvisorOne Funds. This report covers the Benchmark
and the Money Market Funds (the “Funds”), while the
Alternative Strategies Funds, the Sector Funds, the Essential
Portfolio Funds and the CLS AdvisorOne Funds are
contained in separate reports.
Rydex Investments provides advisory, transfer agent and
administrative services, and accounting services to the Trust.
Rydex Distributors, Inc. (the “Distributor”) acts as principal
underwriter for the Trust. Both Rydex Investments and the
Distributor are affiliated entities.
Significant Accounting Policies
The following significant accounting policies are in conformity
with U.S. generally accepted accounting principles and are
consistently followed by the Trust. All time references are
based on Eastern Time. The information contained in these
notes may not apply to every Fund in the Trust.
A. Equity securities listed on an exchange (New York Stock
Exchange (“NYSE”) or American Stock Exchange) are
valued at the last quoted sales price as of the close of
business on the NYSE, usually 4:00 p.m. on the valuation
date. Equity securities listed on the NASDAQ market
system are valued at the NASDAQ Official Closing Price,
usually as of 4:00 p.m. on the valuation date. Listed options
held by the Trust are valued at the Official Settlement Price
listed by the exchange, usually as of 4:00 p.m. Over-theCounter options held by the Trust are valued using the
average bid price obtained from one or more security
dealers. The value of futures contracts purchased and sold
by the Trust is accounted for using the unrealized gain or
loss on the contracts that is determined by marking the
contracts to their current realized settlement prices.
Financial futures contracts are valued at the last quoted
sales price, usually as of 4:00 p.m. on the valuation date. In
the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., the futures contract is valued
at the Official Settlement Price of the exchange. However,
the underlying securities from which the futures contract
value is derived are monitored until 4:00 p.m. to determine
if fair valuation would provide a more accurate valuation.
Short-term securities, if any, are valued at amortized cost,
which approximates market value.
108 |
THE
RYDEX
(Unaudited)
Debt securities with a maturity greater than 60 days are
valued at the last traded fill price at the close of the Funds’
pricing cycle, unless no trades were executed. If there are
no trades, a security is valued at the reported bid price, at
the close of the Funds’ pricing cycle, usually 4:00 p.m.
Structured notes are valued in accordance with the terms
of their agreement at the value of the underlying index
close, usually 4:00 p.m., adjusted for any interest accruals
and financing charges. If the securities comprising the
underlying index cease trading before a Fund’s close of
business, the index will be fair valued with the use of an
appropriate market indicator.
Traditional open-end investment companies (“Mutual
Funds”) are valued at their NAV as of the close of business,
usually 4:00 p.m. on the valuation date. Exchange Traded
Funds (“ETFs”) and closed-end investment companies are
valued at the last quoted sales price.
The value of domestic equity index and credit default swap
agreements entered into by a Fund is accounted for using
the unrealized gain or loss on the agreements that is
determined by marking the agreements to the last quoted
value of the index that the swap pertains to at the close of
the NYSE, usually 4:00 p.m. The swap’s market value is then
adjusted to include dividends accrued, financing charges
and/or interest associated with the swap agreements.
The value of foreign equity and currency index swap
agreements entered into by a Fund is accounted for using
the unrealized gain or loss on the agreements that is
determined by marking the agreements to the price at
which orders are being filled at the close of the NYSE,
usually 4:00 p.m. In the event that no order is filled at 4:00
p.m., the security dealer provides a fair value quote at
which the swap agreement is valued. The swap’s market
value is then adjusted to include dividends accrued,
financing charges and/or interest associated with the swap
agreements.
Investments for which market quotations are not readily
available are fair valued as determined in good faith by
Rydex Investments under the direction of the Board of
Trustees using methods established or ratified by the Board
of Trustees. These methods include, but are not limited to:
(i) general information as to how these securities and assets
trade; (ii) in connection with futures contracts and options
thereupon, and other derivative investments, information as
to how (a) these contracts and other derivative investments
trade in the futures or other derivative markets, respectively,
and (b) the securities underlying these contracts and other
derivative investments trade in the cash market; and (iii)
other information and considerations, including current
values in related-markets.
B. Securities transactions are recorded on the trade date for
financial reporting purposes. Realized gains and losses from
securities transactions are recorded using the identified cost
basis. Proceeds from lawsuits related to investment holdings
are recorded as realized gains in the respective Fund.
Dividend income is recorded on the ex-dividend date, net
of applicable taxes withheld by foreign countries. Interest
income, including amortization of premiums and accretion
of discount, is accrued on a daily basis. Distributions
received from investments in REITs are recorded as dividend
income on the ex-dividend date, subject to reclassification
upon notice of the character of such distribution by the
issuer.
C. Distributions from net investment income are declared
daily and paid monthly in the Government Long Bond 1.2x
Strategy Fund and the U.S. Government Money Market
Fund. Distributions of net investment income in the
remaining Funds and distributions of net realized capital
gains in all Funds, if any, are declared and paid at least
annually. Distributions are recorded on the ex-dividend date
and are determined in accordance with income tax
regulations which may differ from U.S. generally accepted
accounting principles.
D. When a Fund engages in a short sale of an equity or
fixed income security, an amount equal to the proceeds is
reflected as an asset and an equivalent liability. The amount
of the liability is subsequently marked-to-market to reflect
the market value of the short sale. The Fund maintains a
segregated account of cash and/or securities as collateral
for short sales. The Fund is exposed to market risk based on
the amount, if any, that the market value of the security
exceeds the market value of the securities in the segregated
account. Fees, if any, paid to brokers to borrow securities in
connection with short sales are considered part of the cost
of short sale transactions. In addition, the Fund must pay
out the dividend rate of the equity or coupon rate of the
treasury obligation to the lender and records this as an
expense. Short dividends or interest expense is a cost
associated with the investment objective of short sales
transactions, rather than an operational cost associated with
the day-to-day management of any mutual fund.
E. Upon the purchase of an option by a Fund, the premium
paid is recorded as an investment, the value of which is
marked-to-market daily. When a purchased option expires,
that Fund will realize a loss in the amount of the cost of the
option. When a Fund enters into a closing sale transaction,
that Fund will realize a gain or loss depending on whether
the proceeds from the closing sale transaction are greater
or less than the cost of the option. When a Fund exercises a
put option, that Fund will realize a gain or loss from the sale
of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. When a
Fund exercises a call option, the cost of the security
purchased by that Fund upon exercise will be increased by
the premium originally paid. When a Fund writes (sells) an
option, an amount equal to the premium received is
entered in that Fund’s accounting records as an asset and
equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current value of the option
written. When a written option expires, or if a Fund enters
into a closing purchase transaction, that Fund realizes a gain
(or loss if the cost of a closing purchase transaction exceeds
the premium received when the option was sold).
F. The Trust may enter into stock and bond index futures
contracts and options on such futures contracts. Futures
contracts are contracts for delayed delivery of securities at a
specified future delivery date and at a specific price. Upon
entering into a contract, a Fund deposits and maintains as
collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract,
the Fund agrees to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation
margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the
value at the time it was closed.
G. The Trust may enter into domestic equity index and
domestic currency index swap agreements, which are overthe-counter contracts in which one party agrees to make
periodic payments based on the change in market value of
a specified equity security, basket of equity securities,
equity index or domestic currency index, in return for
periodic payments based on a fixed or variable interest rate
or the change in market value of a different equity security,
basket of equity securities, equity index or domestic
currency index. Swap agreements are used to obtain
exposure to an equity or market without owning or taking
physical custody of securities. The swap agreements are
marked-to-market daily based upon quotations from market
makers and the change, if any, is recorded as unrealized
gain or loss. Payments received or made as a result of an
agreement or termination of the agreement are recognized
as realized gains or losses.
The Trust may enter into credit default swap agreements
where one party, the protection buyer, makes an upfront or
periodic payment to a counterparty, the protection seller, in
exchange for the right to receive a contingent payment.
The maximum amount of the payment may equal the
notional amount, at par, of the underlying index or security
as a result of a related credit event. Upfront payments
received or made by a Fund, are amortized over the
expected life of the agreement. Periodic payments received
or paid by a Fund are recorded as realized gains or losses.
The credit default contracts are marked-to-market daily
based upon quotations from market makers and the
change, if any, is recorded as unrealized gain or loss.
Payments received or made as a result of a credit event or
termination of the contract are recognized, net of a
proportional amount of the upfront payment, as realized
gains or losses.
THE
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| 109
H. The Trust may invest in structured notes, which are overthe-counter contracts linked to the performance of an
underlying benchmark such as interest rates, equity
markets, equity indices, commodities indices, corporate
credits or foreign exchange markets. A structured note is
a type of bond in which an issuer borrows money from
investors and pays back the principal, adjusted for
performance of the underlying benchmark, at a specified
maturity date. In addition, the contract may require periodic
interest payments. Structured notes are used to obtain
exposure to a market without owning or taking physical
custody of securities or commodities. Fluctuations in value
of the structured notes are recorded as unrealized gains and
losses in the accompanying financial statements. Coupon
payments are recorded as income while net payments are
recorded as net realized gains or losses.
I. Investment securities and other assets and liabilities
denominated in foreign currencies are translated into U.S.
dollar amounts at the date of valuation. Purchases and sales
of investment securities and income and expense items
denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions.
The Trust does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in
market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain and loss
from investments.
Reported net realized foreign exchange gains or losses arise
from sales of foreign currencies and currency gains or losses
realized between the trade and settlement dates on
investment transactions. Net unrealized exchange gains and
losses arise from changes in the fair values of assets and
liabilities other than investments in securities at the fiscal
period end, resulting from changes in exchange rates.
J. The Trust may enter into forward currency contracts
primarily to hedge against foreign currency exchange rate
risks on its non-U.S. dollar denominated investment
securities. When entering into a forward currency contract,
a Fund agrees to receive or deliver a fixed quantity of
foreign currency for an agreed-upon price on an agreed
future date. These contracts are valued daily and the
corresponding unrealized gain or loss on the contracts, as
measured by the difference between the forward foreign
exchange rates at the dates of entry into the contracts and
the forward rates at the reporting date, is included in the
Statement of Assets and Liabilities. Realized and unrealized
gains and losses are included in the Statement of
Operations.
K. Certain U.S. Government and Agency Obligations are
traded on a discount basis; the interest rates shown on the
Schedules of Investments reflect the effective rates at the
time of purchase by the Funds. Other securities bear interest
at the rates shown, payable at fixed dates through maturity.
The Funds may also purchase American Depository Receipts,
110 |
THE
RYDEX
U.S. Government securities, and enter into repurchase
agreements.
L. The Funds may leave cash overnight in their cash account
with the custodian, U.S. Bank. Periodically, a Fund may have
cash due to the custodian bank as an overdraft balance. A
fee is incurred on this overdraft, calculated by multiplying
the overdraft by a rate based on the federal funds rate.
Segregated cash with the broker is held as collateral for
investments in derivative instruments such as futures
contracts and index swap agreements.
M. The preparation of financial statements in conformity
with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that
affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual
results could differ from these estimates.
N. Throughout the normal course of business, the Funds
enter into contracts that contain a variety of representations
and warranties which provide general indemnifications. The
Funds’ maximum exposure under these arrangements is
unknown, as this would involve future claims that may be
made against the Funds and/or their affiliates that have not
yet occurred. However, based on experience, the Funds
expect the risk of loss to be remote.
2. Financial Instruments
As part of its investment strategy, the Trust may utilize short
sales and a variety of derivative instruments, including
options, futures, options on futures, structured notes, and
swap agreements. These investments involve, to varying
degrees, elements of market risk and risks in excess of the
amounts recognized in the Statements of Assets and
Liabilities.
Short sales are transactions in which a Fund sells an equity
or fixed income security it does not own. If the security sold
short decreases in price between the time the Fund sells the
security and closes its short position, that Fund will realize a
gain on the transaction. Conversely, if the security increases
in price during the period, that Fund will realize a loss on
the transaction. The risk of such price increases is the
principal risk of engaging in short sales.
The risk associated with purchasing options is limited to the
premium originally paid. The risk in writing a covered call
option is that a Fund may forego the opportunity for profit
if the market price of the underlying security increases and
the option is exercised. The risk in writing a covered put
option is that a Fund may incur a loss if the market price of
the underlying security decreases and he option is
exercised. In addition, there is the risk that a Fund may not
be able to enter into a closing transaction because of an
illiquid secondary market or, for over-the-counter options,
because of the counterparty’s inability to perform.
There are several risks in connection with the use of futures
contracts. Risks may be caused by an imperfect correlation
between movements in the price of the instruments and the
price of the underlying securities. In addition, there is the
risk that a Fund may not be able to enter into a closing
transaction because of an illiquid secondary market.
There are several risks associated with the use of structured
notes. Structured notes are leveraged, thereby providing an
exposure to the underlying benchmark greater than the
face amount and increasing the volatility of each note
relative to the change in the underlying linked financial
instrument. A highly liquid secondary market may not exist
for the structured notes a Fund invests in, which may make
it difficult for that Fund to sell the structured notes it holds
at an acceptable price or to accurately value them. In
addition, structured notes are subject to the risk that the
counterparty to the instrument, or issuer, might not pay
interest when due or repay principal at maturity of the
obligation. Although the Trust will not invest in any
structured notes unless Rydex Investments believes that the
issuer is creditworthy, a Fund does bear the risk of loss of
the amount expected to be received in the event of the
default or bankruptcy of the issuer.
There are several risks associated with the use of swap
agreements that are different from those associated with
ordinary portfolio securities transactions, due to the fact
they could be considered illiquid. Although the Trust will
not enter into any swap agreement unless Rydex
Investments believes that the other party to the transaction
is creditworthy, the Funds bear the risk of loss of the
amount expected to be received under a swap agreement
in the event of the default or bankruptcy of the agreement
counterparty.
There are several risks associated with credit default swaps.
Credit default swaps involve the exchange of a fixed-rate
premium for protection against the loss in value of an
underlying debt instrument in the event of a defined credit
event (such as payment default or bankruptcy). Under the
terms of the swap, one party acts as a “guarantor,”
receiving a periodic payment that is a fixed percentage
applied to a notional principal amount. In return, the party
agrees to purchase the notional amount of the underlying
instrument, at par, if a credit event occurs during the term
of the swap. A Fund may enter into credit default swaps in
which that Fund or its counterparty acts as guarantor. By
acting as the guarantor of a swap, that Fund assumes the
market and credit risk of the underlying instrument,
including liquidity and loss of value.
In conjunction with the use of short sales, options, futures,
options on futures, and swap agreements, the Funds are
required to maintain collateral in various forms. The Funds
use, where appropriate, depending on the financial
instrument utilized and the broker involved, margin deposits
at the broker, cash and/or securities segregated at the
custodian bank, discount notes, or the repurchase
agreements allocated to each Fund.
The risks inherent in the use of short sales, options, futures
contracts, options on futures contracts, structured notes,
and swap agreements, include i) adverse changes in the
value of such instruments; ii) imperfect correlation between
the price of the instruments and movements in the price of
the underlying securities, indices, or futures contracts; iii)
the possible absence of a liquid secondary market for any
particular instrument at any time; and iv) the potential of
counterparty default. The Trust has established strict
counterparty credit guidelines and enters into transactions
only with financial institutions of investment grade or better.
3. Fees And Other Transactions With Affiliates
Under the terms of an investment advisory contract, the
Trust pays Rydex Investments investment advisory fees
calculated at an annualized rate of 0.50% of the average
daily net assets of the Government Long Bond 1.2x
Strategy Fund and the U.S. Government Money Market
Fund; 0.75% of the average daily net assets of the Nova
Fund, the NASDAQ-100® Fund, the Small-Cap Value Fund,
the Mid- Cap Value Fund, the Large-Cap Value Fund, the
Small-Cap Growth Fund, the Mid-Cap Growth Fund and the
Large-Cap Growth Fund; and 0.90% of the average daily
net assets of the remaining Funds covered in this report.
Rydex Investments provides transfer agent and
administrative services to the Funds calculated at an
annualized rate of 0.20% of the average daily net assets of
the Government Long Bond 1.2x Strategy Fund and the
U.S. Government Money Market Fund; and 0.25% of the
average daily net assets of the remaining Funds covered in
this report.
Rydex Investments also provides accounting services to the
Trust for fees calculated at an annualized rate of 0.10% on
the first $250 million of the average daily net assets, 0.075%
on the next $250 million of the average daily net assets,
0.05% on the next $250 million of the average daily net
assets, and 0.03% on the average daily net assets over $750
million of each Fund.
Rydex Investments engages external service providers to
perform other necessary services for the Trust, such as
accounting and audit related services, legal services,
custody, printing and mailing, etc., on a pass-through basis.
Such expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets. Organizational and
setup costs for new funds are paid by the Trust.
The Trust has adopted a Distribution Services Plan for which
the Distributor and other firms that provide shareholder
services (“Service Providers”) may receive compensation.
The Trust will pay fees to the Distributor at an annual rate
not to exceed 0.25% of average daily net assets. The
Distributor, in turn, will compensate Service Providers for
providing such services, while retaining a portion of such
payments to compensate itself for shareholder services it
performs.
Certain officers and trustees of the Trust are also officers of
Rydex Investments and the Distributor.
THE
RYDEX
| 111
4. Federal Income Tax Information
The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated
investment companies and will distribute substantially all net investment income and capital gains to shareholders. Therefore, no
Federal income tax provision has been recorded.
Effective September 30, 2007, the Funds adopted Financial Accounting Standards Board (FASB) Interpretation No. 48
“Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken
or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likelythan-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on
federal income tax returns for all open tax years for purposes of complying with FIN 48, and has concluded that no provision for
income tax was required in the Funds’ financial statements.
The Funds file U.S. federal income tax returns and returns in various foreign jurisdictions in which they invest. While the statute of
limitations remains open to examine the Funds’ U.S. federal income tax returns filed for the fiscal years 2004 to 2007, no
examinations are in progress or anticipated at this time.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from
U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for derivatives, foreign
currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations.
Permanent book and tax basis differences, if any, will result in reclassifications. This includes net operating losses not utilized
during the current period, and capital loss carryforward expired, and the utilization of earnings and profits distributed to the
shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifications
have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining
at fiscal year end is distributed in the following year.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of
operations. During the period, the Funds did not incur any interest or penalties.
At June 30, 2008, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for
which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an
excess of tax cost over value were as follows:
Fund
Nova Fund
NASDAQ-100® Fund
Mid-Cap Value Fund
Mid-Cap Growth Fund
112 |
THE
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Tax
Cost
Tax
Unrealized
Gain
Tax
Unrealized
Loss
Net
Unrealized
Gain (Loss)
$ 50,667,976
81,251,903
41,987,635
14,665,719
24,769,075
19,807,400
27,279,740
5,687,878
4,167,249
15,822,147
8,621,714
59,544,386
27,051,297
34,916,828
13,574,636
27,720,330
13,708,625
15,927,273
17,449,657
33,941,065
14,311,956
41,627,033
35,005,350
333,422,253
$ 6,163,996
—
18,472,461
—
1,926,207
6,953,278
1,668,177
—
170,863
560,898
—
—
137,125
4,275,683
—
2,395,783
—
424,326
230,760
—
361,985
3,250,864
2,068,707
—
$(2,877,056)
—
(825,195)
—
(971,343)
(387,314)
(892,056)
—
(221,401)
(1,216,755)
—
(657,539)
(665,752)
(1,552,377)
—
(2,360,720)
—
(2,079,343)
(1,952,129)
(5,818,068)
(759,507)
(867,523)
(1,591,076)
—
$ 3,286,940
—
17,647,266
—
954,864
6,565,964
776,121
—
(50,538)
(655,857)
—
(657,539)
(528,627)
2,723,306
—
35,063
—
(1,655,017)
(1,721,369)
(5,818,068)
(397,522)
2,383,341
477,631
—
5. Repurchase Agreements
The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or
more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in
the possession of the Funds’ custodian and is evaluated daily to ensure that its market value exceeds by, at a minimum, 102% of
the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar
amount of the repurchase agreement entered into by each Fund.
The repurchase agreements executed by the joint account and outstanding as of June 30, 2008, were as follows:
Counterparty
Terms of Agreement
Morgan Stanley
0.25%
1.75%
1.74%
1.70%
due
due
due
due
07/01/08
07/01/08
07/01/08
07/01/08
Face Value
Market Value
Repurchase Price
$110,600,205
91,250,000
91,250,000
91,250,000
$110,600,205
91,250,000
91,250,000
91,250,000
$384,350,205
$110,600,973
91,254,436
91,254,410
91,254,309
$384,364,128
As of June 30, 2008, the collateral for the repurchase agreements in the joint account was as follows:
Security Type
U.S. Treasury Bills
U.S. TIP Notes
U.S. TIP Bonds
Maturity Dates
08/14/08 - 12/26/08
07/15/16 - 07/15/17
01/15/25
Range of Rates
Par Value
Market Value
—
2.500% - 2.625%
2.375%
$195,735,000
159,613,000
9,795,000
$194,134,124
186,218,716
11,756,093
$392,108,933
In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is
potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the
collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while
the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees,
reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into
repurchase agreements to evaluate potential risks.
6. Fair Value Measurement
On September 15, 2006, the FASB released Statement of Financial Accounting Standard No. 157 (“FAS 157”) Fair Value
Measurement which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires
companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of
these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new
circumstances, but provides clarification on acceptable fair valuation methods and applications.
Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:
Level 1 — quoted prices in active markets for identical securities.
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.).
Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in
those securities.
THE
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| 113
The following table summarizes the inputs used to value the Funds’ net assets as of June 30, 2008:
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
Investments Other Financial Investments Other Financial Investments Other Financial
In Securities
Instruments In Securities
Instruments In Securities
Instruments
Fund
Assets
Nova Fund
$ 53,954,916
75,251,903
NASDAQ-100® Fund
59,634,901
Inverse NASDAQ-100® Strategy Fund 10,666,184
25,723,939
26,373,364
28,055,861
2,188,441
4,116,711
15,166,290
6,621,771
Government Long Bond 1.2x
Strategy Fund
44,888,478
Inverse Government Long Bond
Strategy Fund
23,385,545
37,640,134
12,574,636
27,755,393
12,708,625
14,272,256
Mid-Cap Value Fund
15,728,288
28,122,667
13,914,434
Mid-Cap Growth Fund
44,010,374
35,482,981
U.S. Government Money
Market Fund
333,422,253
Liabilities
Nova Fund
—
—
NASDAQ-100® Fund
—
—
—
—
—
—
—
—
—
Strategy Fund
—
Strategy Fund
3,820,070
—
—
—
—
—
Mid-Cap Value Fund
—
—
—
Mid-Cap Growth Fund
—
—
—
114 |
THE
RYDEX
$
$
—
882,420
—
629,365
—
—
—
134,741
—
—
796,719
$
—
—
—
—
—
—
—
—
—
—
—
$
Total
—
553,837
—
492,526
—
—
—
77,185
—
—
80
$
—
6,000,000
—
3,999,535
—
—
—
3,499,437
—
—
1,999,943
— $ 53,954,916
—
82,688,160
—
59,634,901
—
15,787,610
—
25,723,939
—
26,373,364
—
28,055,861
—
5,899,804
—
4,116,711
—
15,166,290
—
9,418,513
1,276,039
13,998,369
—
—
—
60,162,886
—
—
—
—
1,036
—
—
—
—
—
—
3,000,000
—
1,000,000
—
1,000,000
—
—
—
—
—
—
—
—
—
—
2,712,771
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
26,385,545
37,640,134
13,574,636
27,755,393
16,422,432
14,272,256
15,728,288
28,122,667
13,914,434
44,010,374
35,482,981
—
—
—
—
—
333,422,253
585,433
—
537,958
—
424,676
1,261,991
476,460
—
46,486
258,165
—
—
—
—
—
—
—
—
—
—
—
—
477,095
—
323,204
—
683,921
1,425,304
546,463
—
154,433
469,499
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,062,528
—
861,162
—
1,108,597
2,687,295
1,022,923
—
200,919
727,664
—
—
—
—
—
—
—
307,540
—
—
1,480,093
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
265,470
498,638
506,754
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,127,610
265,470
498,638
1,986,847
—
—
—
—
—
—
—
—
7. Securities Transactions
During the period ended June 30, 2008, the cost of purchases and proceeds from sales of investment securities, excluding shortterm and temporary cash investments, were:
Purchases
Sales
Inverse
Inverse
S&P 500 NASDAQ-100® NASDAQ-100®
Nova Fund Strategy Fund
Fund Strategy Fund
$50,453,635
$
—
$30,101,641
$
—
$62,188,656
$
—
$39,425,153
$
—
Russell 2000® 2x
Strategy
Fund
Purchases
$ 3,495,167
Sales
$ 5,419,740
Inverse Dow 2x
Strategy
Fund
Purchases
$
—
Sales
$
—
Russell 2000®
Inverse
1.5x Strategy Russell 2000®
Fund Strategy Fund
$29,086,612
$
—
$30,794,545
$
—
Small-Cap
Value
Fund
$17,153,994
$15,099,383
Mid-Cap
Value
Fund
$12,754,443
$15,332,071
S&P 500 2x NASDAQ-100®
Strategy
2x Strategy
Fund
Fund
$ 26,125,358
$10,995,239
$ 17,191,245
$27,670,224
Government
Inverse
Long Bond Government
1.2x Strategy
Long Bond
Fund Strategy Fund
$317,542,375 $189,214,603
$321,493,315 $198,412,989
Large-Cap
Value
Fund
$ 40,902,142
$ 39,176,072
Europe 1.25x
Strategy
Fund
$ 8,539,080
$32,772,483
Small-Cap
Growth
Fund
$ 19,214,366
$ 20,823,935
THE
Mid-Cap
Growth
Fund
$53,280,040
$46,760,869
RYDEX
Mid-Cap 1.5x
Inverse
Strategy
Mid-Cap
Fund Strategy Fund
$14,131,046
$
—
$22,571,765
$
—
Japan 1.25x
Strategy
Fund
$
—
$
—
Dow 2x
Strategy
Fund
$ 7,315,365
$12,398,639
U.S.
Large-Cap
Government
Growth Money Market
Fund
Fund
$37,073,424
$
—
$43,155,319
$
—
| 115
116 |
THE
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(continued)
† Unaudited.
Shares Purchased
Period Ended
Year Ended
June 30, December 31,
2008†
2007
Nova Fund
11,433,018
26,120,576
11,723,102
19,376,299
NASDAQ 100® Fund
8,463,175
20,423,064
Inverse NASDAQ 100® Strategy Fund 10,462,695
64,675,490
8,228,311
9,149,129
NASDAQ 100® 2x Strategy Fund
9,358,788
39,415,461
3,734,444
14,637,784
1,093,386
3,053,209
1,917,854
2,021,473
4,613,257
8,677,892
®
Inverse Russell 2000 Strategy Fund 3,659,259
6,055,699
Strategy Fund
22,222,523
40,890,318
Strategy Fund
10,818,036
8,139,115
1,744,970
6,760,829
2,246,776
5,089,542
4,786,829
7,160,299
4,412,832
4,904,068
1,171,158
1,754,037
Mid-Cap Value Fund
861,343
5,074,565
2,152,023
5,719,976
959,432
3,790,354
Mid-Cap Growth Fund
2,089,152
5,781,889
1,676,466
5,518,742
U.S. Government Money
Market Fund
499,840,786 1,479,694,977
166,118
37,001
325,736
48,429
188,696
23,215
115,167
18,096
207,526
57,233
90,205
26,086
10,144,753
72,109
–
–
–
–
–
–
–
–
–
–
–
2,477,304
Purchased through
Dividend Reinvestment
Period Ended
Year Ended
2008†
2007
–
114,081
–
18,344
–
3,482
–
53,434
–
211,350
–
6,199
–
182,225
–
3,463
–
2,538
–
58,488
–
11,037
(8,633,879)
(7,343,936)
(5,577,430)
(7,291,478)
(5,026,052)
(2,529,670)
(5,587,238)
(7,571,756)
(4,167,256)
(5,519,616)
(5,102,555)
(41,149,330)
(460,632,125) (1,420,642,030)
(10,864,153)
(3,261,875)
(2,290,109)
(4,891,600)
(4,278,143)
(1,107,298)
(1,010,028)
(2,113,405)
(1,034,304)
(1,890,154)
(1,965,194)
(21,484,743)
Shares Redeemed
Period Ended
Year Ended
June 30,
December 31,
2008†
2007
(13,283,672)
(31,396,735)
(9,932,999)
(23,220,677)
(9,040,088)
(20,609,419)
(10,127,511)
(65,135,299)
(8,363,511)
(9,202,386)
(9,801,155)
(38,516,138)
(3,795,430)
(15,146,674)
(1,007,527)
(3,131,417)
(1,967,671)
(1,923,950)
(4,718,020)
(9,873,791)
(3,718,805)
(6,087,515)
8. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the periods presented were:
41,685,965
(46,117)
(1,516,905)
(43,333)
(104,771)
134,689
63,860
(148,685)
38,618
(74,872)
198,998
(288,728)
809,889
69,197,700
(457,763)
(257,371)
(439,459)
57,517
(98,769)
(660,466)
(494,577)
(1,644,254)
(319,669)
352,478
442,273
(92,894)
Net Shares
Purchased (Redeemed)
Period Ended
Year Ended
2008†
2007
(1,850,654)
(5,162,078)
1,790,103
(3,826,034)
(576,913)
(182,873)
335,184
(406,375)
(135,200)
158,093
(442,367)
905,522
(60,986)
(326,665)
85,859
(74,745)
(49,817)
100,061
(104,763)
(1,137,411)
(59,546)
(20,779)
9. Portfolio Securities Loaned
The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the
statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with the
lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the agent, and other approved registered
broker dealers act as the borrowers. The Funds receive cash collateral, valued at 100% of the value of the securities on loan,
which is initially held in a segregated account at U.S. Bank. Under the terms of the Funds’ securities lending agreement with U.S.
Bank, cash collateral may be invested by U.S. Bank in certain high quality, liquid investments. At June 30, 2008, the cash collateral
investments consisted of a money market mutual fund and repurchase agreement. The Funds bear the risk of loss on cash
collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities,
as determined at the close of fund business each day; any additional collateral required due to changes in security values is
delivered to the Fund the next business day. Although the collateral mitigates risk, the Funds could experience a delay in
recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the
right under the securities lending agreement to recover the securities from the borrower on demand.
The following represents a breakdown of the collateral:
MUTUAL FUND
Issuer
Mount Vernon Securities Lending Trust
Shares
Market Value
100,200,765
$ 100,200,765
Total Mutual Fund
$100,200,765
At June 30, 2008, the following Funds participated in securities lending and received cash collateral:
Nova Fund
NASDAQ-100® Fund
Mid-Cap Value Fund
Mid-Cap Growth Fund
Value of
Securities Loaned
$ 9,508,912
11,566,360
3,528,749
4,749,419
4,811,764
795,186
4,203,970
10,304,091
2,877,478
4,726,822
4,371,395
7,934,988
4,325,176
12,595,635
9,163,634
Cash Collateral
$ 9,900,011
12,116,434
3,676,802
4,990,476
5,023,409
845,476
4,469,293
10,543,611
2,989,260
5,149,458
4,733,265
8,520,085
4,599,622
13,152,489
9,491,074
10. New Accounting Pronouncements
In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new
requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities
use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is
effective for fiscal years and interim periods beginning after November 15, 2008.
11. NASDAQ Name Change
Effective April 1, 2008, the OTC Fund, Inverse OTC Strategy Fund and OTC 2x Strategy Fund, changed their Fund names to
NASDAQ-100® Fund, Inverse NASDAQ-100® Strategy Fund, and NASDAQ-100® 2x Strategy Fund, respectively. The name change
will have no impact on the Funds’ investment objectives, tickers and CUSIPS.
THE
RYDEX
| 117
O T H E R I N F O R M AT I O N
(Unaudited)
Proxy Voting Information
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the
Funds’ portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from
the EDGAR database on the SEC’s website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended
June 30 is available without charge, upon request, by calling 1-800-820-0888. This information is also available from the EDGAR
database on the SEC’s website at http://www.sec.gov.
Proxy Results
At a special meeting of shareholders held on October 4, 2007, the shareholders of the Funds voted on whether to approve a new
investment advisory agreement between Rydex Variable Trust and Padco Advisors II, Inc. A description of the number of shares
voted is as follows:
Fund
Nova Fund
NASDAQ-100® Fund
Mid-Cap Value Fund
Mid-Cap Growth Fund
Shares
For
7,587,785
422,167
3,671,945
839,276
706,524
1,228,355
1,519,648
77,336
239,030
503,093
390,663
4,069,287
905,493
2,209,189
750,673
1,087,945
554,761
520,717
954,149
1,030,729
441,408
697,972
685,858
297,686,428
Shares
Against
339,176
7,257
158,196
24,044
—
23,305
59,839
—
—
15,044
5,761
54,701
82,858
52,767
26,202
12,370
4,257
2,031
6,136
5,881
1,625
13,986
—
10,252,350
Shares
Abstained
498,549
16,933
161,884
10,999
13,634
14,850
54,494
2,933
—
20,969
14,234
257,521
6,216
103,503
29,294
17,376
4,324
17,502
92,636
145,055
15,136
41,038
77,033
24,351,482
Quarterly Portfolio Schedules Information
The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form
N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the
SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon
request, by calling 1-800-820-0888.
118 |
THE
RYDEX
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
(Unaudited)
A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and continue to serve
after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and
Officers, and can be obtained without charge by calling 1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
Name, Position and
Year of Birth
–––––––––––––––––––––––––
Carl G. Verboncoeur*
Trustee, President (1952)
Length of Service
As Trustee
(Year Began)
––––––––––––––––––––––––––––––––
Rydex Series Funds – 2004
Rydex Variable Trust – 2004
Rydex Dynamic Funds – 2004
Rydex ETF Trust – 2004
Number of
Funds Overseen
––––––––––——––––––
158
Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive
Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors,
Inc. (2003 to present); Executive Vice President of Rydex Investments (2000 to 2003)
Michael P. Byrum*
Trustee, Vice President
(1970)
150
Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of
Rydex Specialized Products, LLC (2005 to 2008); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex
Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust
(2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments
(2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)
INDEPENDENT TRUSTEES
Name, Position and
Year of Birth
–––––––––––––––––––––––––
John O. Demaret
Trustee, Chairman of the
Board (1940)
Length of Service
As Trustee
(Year Began)
––––––––––––––––––––––––––––––––
Number of
Funds Overseen
––––––––––——––––––
150
Principal Occupations During Past Five Years: Retired
Corey A. Colehour
Trustee (1945)
150
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management
Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield
Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton
Trustee (1941)
150
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
Werner E. Keller
Trustee (1940)
150
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
THE
RYDEX
| 119
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Name, Position and
Year of Birth
–––––––––––––––––––––––––
Thomas F. Lydon, Jr.
Trustee (1960)
Length of Service
As Trustee
(Year Began)
––––––––––––––––––––––––––––––––
Number of
Funds Overseen
––––––––––——––––––
150
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville
Trustee (1942)
150
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers
Trustee (1944)
150
Principal Occupations During Past Five Years: Owner, Arrow Limousine
EXECUTIVE OFFICERS
Name, Position and
Year of Birth
––––––––––––––––––––––––––––––
Nick Bonos*
Vice President and Treasurer (1963)
Principal Occupations
During Past Five Years
–––––––––––––––––––––––––––
Chief Financial Officer of Rydex Specialized Products, LLC (2005 to
present); Vice President and Treasurer of Rydex Series Funds,
Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust
(2003 to present); Senior Vice President of Rydex Investments
(2003 to present); Vice President and Treasurer of Rydex Capital
Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney*
Chief Compliance Officer and Secretary (1966)
Chief Compliance Officer of Rydex Series Funds, Rydex Variable
Trust, and Rydex Dynamic Funds (2004 to present); Secretary of
Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic
Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to
present); Vice President of Compliance of Rydex Investments
(2000 to present); Secretary of Rydex Capital Partners SPhinX
Fund (2003 to 2006)
Joseph Arruda*
Assistant Treasurer (1966)
Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust,
Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior
Vice President of Rydex Investments (2008 to present); Vice
President of Rydex Investments (2004 to 2008); Director of
Accounting of Rydex Investments (2003 to 2004)
Paula Billos*
Controller (1974)
Controller of Rydex Series Funds, Rydex Variable Trust, Rydex
Dynamic Funds, Rydex ETF Trust (2006 to present); Director of
Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as
this person is affiliated with Rydex Investments.
120 |
THE
RYDEX
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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVABENF-SEMI-3-0608x1208

rydex variable trust semi-annual report benchmark funds

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