Rydex Offers Funds To Active Traders Shunned By Others
[It looks like short term mutual fund trading is growing in popularity.I still prefer Profunds, but its nice to see the growth in investors attracted to this style of trading and the increase in mutual funds being offered.]
Monday February 23, 3:44 pm ET
By Yuka Hayashi, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--As many mutual-fund companies clamp down on investors with frequent trading strategies, a company that caters to them is on a roll.
Rydex Investments, Rockville, Md., said on Monday it launched 11 new funds " designed to give investment advisers and investors a greater flexibility in actively managing their asset allocations."
Amid the mutual-fund trading scandal that was first reported in early September, many fund companies have tightened rules on how often investors can trade in and out of their funds. Company executives have said Rydex - one of the few companies that offer unlimited exchange privileges - has benefited from the trend as it scooped up some of the investors now shut out from other firms.
Since the beginning of September, Rydex has pulled in $1.6 billion in new investor money, accounting for about 15% of its current total assets under management of $10.7 billion.
With the introduction of new funds, Rydex wants to broaden options to active investors, many of whom rotate among different segments of the markets in pursuit of hot returns. "Investors can take advantage of the opportunity to trade among the funds freely and actively, with no penalties or changes," Rydex Chief Investment Officer Mike Byrum said in a statement.
Among the new lineup are six "style-box" funds benchmarked to S&P/Barra style indexes - Rydex Large-Cap Value, Large-Cap Growth, and four other offerings tracking value and growth indexes in the mid- and small-cap space.
The company also rolled out two "bear" funds designed to return the inverse of market returns. These two are: Rydex Inverse Mid-Cap and Inverse Small-Cap funds.
Also introduced are two leveraged funds that enhance the returns of index funds. Rydex Long Dynamic Dow 30 Fund seeks to provide 200% of the movement in the Dow 30 Index and Rydex Inverse Dynamic Dow 30 returns the opposite of that fund.
Finally, the company added Rydex Real Estate Fund, expanding its family of sector funds to 17 offerings.
- By Yuka Hayashi; Dow Jones Newswires; 201-938-2129; yuka.hayashi@dowjones.com
biz.yahoo.com |
