UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811- 08821 | |
Rydex Variable Trust
(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex Variable Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Name and address of agent for service)
Rydex Variable Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
Registrant’s telephone number, including area code: | 1-301-296-5149 | |
Date of fiscal year end: | December 31, 2008 | |
Date of reporting period: | December 31, 2008 | |
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Rydex Variable Trust Annual Report
DECEMBER 31, 2008
RYDEX VARIABLE TRUST ANNUAL REPORT
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 | INVERSE RUSSELL 2000 ® | MID-CAP VALUE FUND | ||
(Formerly, OTC Fund) | STRATEGY FUND | |||
LARGE-CAP VALUE FUND | ||||
INVERSE NASDAQ-100 ® | GOVERNMENT LONG BOND | |||
STRATEGY FUND | 1.2x STRATEGY FUND | SMALL-CAP GROWTH FUND | ||
(Formerly, Inverse OTC Strategy Fund) | ||||
INVERSE GOVERNMENT LONG BOND | MID-CAP GROWTH FUND | |||
S&P 500 2x STRATEGY FUND | STRATEGY FUND | |||
LARGE-CAP GROWTH FUND | ||||
NASDAQ-100® 2x STRATEGY FUND | EUROPE 1.25x STRATEGY FUND | |||
(Formerly, OTC 2x Strategy Fund) | U.S. GOVERNMENT | |||
JAPAN 1.25x STRATEGY FUND | MONEY MARKET FUND | |||
MID-CAP 1.5x STRATEGY FUND | ||||
DOW 2x STRATEGY FUND | ||||
INVERSE MID-CAP STRATEGY FUND |
GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888. |
This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1 |
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.
Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.
Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.
It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases), home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.
Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.
Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.
The industry’s first managed futures mutual fund—the Rydex Managed Futures Strategy Fund—surpassed the $1-billion mark as investors embrace alternatives strategies and investments to assist not only in managing portfolio risk, but also the potential of enhancing returns.
The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.
In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets.
Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.
Sincerely,
Sincerely,
Michael Byrum
President & Chief Investment Officer
President & Chief Investment Officer
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
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.
Index | Index | Fund | Fund | |||||||||||||||||||||
Level | Performance | Expectation | Fund NAV | Performance | Assessment | |||||||||||||||||||
Start | 100 | $ | 10.00 | |||||||||||||||||||||
Day 1 | 106 | 6.0 | % | 9.0 | % | $ | 10.90 | 9.0 | % | In line | ||||||||||||||
Day 2 | 99 | -6.6 | % | -9.9 | % | $ | 9.82 | -9.9 | % | In line | ||||||||||||||
Cumulative | -1.0 | % | -1.5 | % | -1.8 | % | -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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 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. Shareholders of a Fund 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 June 30, 2008 and ending December 31, 2008.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 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. Investors can assess a 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 a 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 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)
Beginning | Ending | Expenses | ||||||||||||||
Expense | Account Value | Account Value | Paid During | |||||||||||||
Ratio | † | June 30, 2008 | December 31, 2008 | Period | * | |||||||||||
Table 1. Based on actual Fund return | ||||||||||||||||
Nova Fund | 1.56 | % | $ | 1,000.00 | $ | 561.30 | $ | 6.12 | ||||||||
Inverse S&P 500 Strategy Fund | 1.72 | % | 1,000.00 | 1,230.10 | 9.64 | |||||||||||
NASDAQ-100® Fund | 1.59 | % | 1,000.00 | 660.30 | 6.64 | |||||||||||
Inverse NASDAQ-100® Strategy Fund | 1.74 | % | 1,000.00 | 1,335.60 | 10.22 | |||||||||||
S&P 500 2x Strategy Fund | 1.71 | % | 1,000.00 | 432.90 | 6.16 | |||||||||||
NASDAQ-100® 2x Strategy Fund | 1.75 | % | 1,000.00 | 373.40 | 6.04 | |||||||||||
Mid-Cap 1.5x Strategy Fund | 1.72 | % | 1,000.00 | 495.20 | 6.46 | |||||||||||
Inverse Mid-Cap Strategy Fund | 1.71 | % | 1,000.00 | 1,299.70 | 9.88 | |||||||||||
Russell 2000® 2x Strategy Fund | 1.73 | % | 1,000.00 | 434.90 | 6.24 | |||||||||||
Russell 2000® 1.5x Strategy Fund | 1.73 | % | 1,000.00 | 576.70 | 6.86 | |||||||||||
Inverse Russell 2000® Strategy Fund | 1.72 | % | 1,000.00 | 1,147.90 | 9.29 | |||||||||||
Government Long Bond 1.2x Strategy Fund | 1.25 | % | 1,000.00 | 1,439.20 | 7.66 | |||||||||||
Inverse Government Long Bond Strategy Fund | 2.68 | % | 1,000.00 | 709.90 | 11.52 | |||||||||||
Europe 1.25x Strategy Fund | 1.70 | % | 1,000.00 | 545.10 | 6.60 | |||||||||||
Japan 1.25x Strategy Fund | 1.69 | % | 1,000.00 | 722.00 | 7.32 | |||||||||||
Dow 2x Strategy Fund | 1.72 | % | 1,000.00 | 535.90 | 6.64 | |||||||||||
Inverse Dow 2x Strategy Fund | 1.73 | % | 1,000.00 | 1,235.80 | 9.72 | |||||||||||
Small-Cap Value Fund | 1.56 | % | 1,000.00 | 671.60 | 6.55 | |||||||||||
Mid-Cap Value Fund | 1.56 | % | 1,000.00 | 662.20 | 6.52 | |||||||||||
Large-Cap Value Fund | 1.57 | % | 1,000.00 | 676.00 | 6.61 | |||||||||||
Small-Cap Growth Fund | 1.55 | % | 1,000.00 | 737.80 | 6.77 | |||||||||||
Mid-Cap Growth Fund | 1.55 | % | 1,000.00 | 657.50 | 6.46 | |||||||||||
Large-Cap Growth Fund | 1.56 | % | 1,000.00 | 656.70 | 6.50 | |||||||||||
U.S. Government Money Market Fund | 1.26 | % | 1,000.00 | 1,003.80 | 6.35 | |||||||||||
Table 2. Based on hypothetical 5% return (before expenses) | ||||||||||||||||
Nova Fund | 1.56 | % | 1,000.00 | 1,017.29 | 7.91 | |||||||||||
Inverse S&P 500 Strategy Fund | 1.72 | % | 1,000.00 | 1,016.49 | 8.72 | |||||||||||
NASDAQ-100® Fund | 1.59 | % | 1,000.00 | 1,017.14 | 8.06 | |||||||||||
Inverse NASDAQ-100® Strategy Fund | 1.74 | % | 1,000.00 | 1,016.39 | 8.82 | |||||||||||
S&P 500 2x Strategy Fund | 1.71 | % | 1,000.00 | 1,016.54 | 8.67 | |||||||||||
NASDAQ-100® 2x Strategy Fund | 1.75 | % | 1,000.00 | 1,016.34 | 8.87 | |||||||||||
Mid-Cap 1.5x Strategy Fund | 1.72 | % | 1,000.00 | 1,016.49 | 8.72 | |||||||||||
Inverse Mid-Cap Strategy Fund | 1.71 | % | 1,000.00 | 1,016.54 | 8.67 | |||||||||||
Russell 2000® 2x Strategy Fund | 1.73 | % | 1,000.00 | 1,016.44 | 8.77 | |||||||||||
Russell 2000® 1.5x Strategy Fund | 1.73 | % | 1,000.00 | 1,016.44 | 8.77 | |||||||||||
Inverse Russell 2000® Strategy Fund | 1.72 | % | 1,000.00 | 1,016.49 | 8.72 | |||||||||||
Government Long Bond 1.2x Strategy Fund | 1.25 | % | 1,000.00 | 1,018.85 | 6.34 | |||||||||||
Inverse Government Long Bond Strategy Fund | 2.68 | % | 1,000.00 | 1,011.66 | 13.55 | |||||||||||
Europe 1.25x Strategy Fund | 1.70 | % | 1,000.00 | 1,016.59 | 8.62 | |||||||||||
Japan 1.25x Strategy Fund | 1.69 | % | 1,000.00 | 1,016.64 | 8.57 | |||||||||||
Dow 2x Strategy Fund | 1.72 | % | 1,000.00 | 1,016.49 | 8.72 | |||||||||||
Inverse Dow 2x Strategy Fund | 1.73 | % | 1,000.00 | 1,016.44 | 8.77 | |||||||||||
Small-Cap Value Fund | 1.56 | % | 1,000.00 | 1,017.29 | 7.91 | |||||||||||
Mid-Cap Value Fund | 1.56 | % | 1,000.00 | 1,017.29 | 7.91 | |||||||||||
Large-Cap Value Fund | 1.57 | % | 1,000.00 | 1,017.24 | 7.96 | |||||||||||
Small-Cap Growth Fund | 1.55 | % | 1,000.00 | 1,017.34 | 7.86 | |||||||||||
Mid-Cap Growth Fund | 1.55 | % | 1,000.00 | 1,017.34 | 7.86 | |||||||||||
Large-Cap Growth Fund | 1.56 | % | 1,000.00 | 1,017.29 | 7.91 | |||||||||||
U.S. Government Money Market Fund | 1.26 | % | 1,000.00 | 1,018.80 | 6.39 |
* | 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 number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies. | |
† | This ratio represents annualized Total Expenses, which include interest and dividend expense from securities sold short. Excluding short interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 0.98% lower. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)
NOVA FUND
OBJECTIVE: Seeks to provide investment returns that correspond to 150% of the daily performance of the S&P 500 Index.
Inception: May 7, 1997
The S&P 500 Index was down 37.00% in 2008, the worst year since Standard and Poor’s began publishing the index in 1957. The year began with continued concerns over the subprime mortgage crisis and weakening housing market as Bear Stearns collapsed and the Federal Reserve helped orchestrate a takeover of the industry giant by JPMorgan Chase & Co. in March. Fears of a recession increased throughout the year as a highly chaotic atmosphere that came to characterize U.S. equity markets took hold. Stock markets started to freefall after Lehman Brothers Holdings, Inc. filed for bankruptcy on September 15. One-month LIBOR rates spiked to 4.5875% as banks required a higher premium for taking on credit risk from other banks. Volatility also spiked as the VIX increased to a high of 80.86%.
To help calm financial markets, the U.S. government rescued the Federal National Mortgage Association known as Fannie Mae, the Federal Home Loan Mortgage Corp. known as Freddie Mac and American International Group (“AIG”), and released an infusion of cash in the hopes of firming up the balance sheets of major U.S. banking institutions. Then, on October 8, many governments announced massive spending plans in a coordinated effort to help boost global economic activity. These actions appeared to stabilize the financial markets for a short time as the S&P 500 Index ended the year at 903.25—up from its low of 752.44 on November 20. LIBOR rates have also fallen to less than half a percent and VIX decreased to 40% by year end.
Cumulative Fund Performance:
December 31, 1998 – December 31, 2008
December 31, 1998 – December 31, 2008
As expected, no sector provided positive returns for the year. While investors sought growth, they also sought to shield themselves from the now global collapse of the nation’s housing market. Consumer staples, health care and utilities remained defensive during the year. Battered financials, materials and technology were the worst-performing sectors.
Rydex Nova Fund returned -54.47% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Ten | ||||||||||
Year | Year | Year | ||||||||||
NOVA FUND | -54.47 | % | -8.13 | % | -7.89 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -1.38 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Exxon Mobil Corp. | 3.7 | % | ||
Procter & Gamble Co. | 1.7 | % | ||
General Electric Co. | 1.6 | % | ||
AT&T, Inc. | 1.5 | % | ||
Johnson & Johnson, Inc. | 1.5 | % | ||
Chevron Corp. | 1.4 | % | ||
Microsoft Corp. | 1.4 | % | ||
Wal-Mart Stores, Inc. | 1.1 | % | ||
Wells Fargo & Co. | 1.1 | % | ||
Pfizer, Inc. | 1.1 | % | ||
Top Ten Total | 16.1 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
INVERSE S&P 500 STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that inversely correlate to daily performance of the S&P 500 Index.
Inception: June 9, 1997
The S&P 500 Index was down 37.00% in 2008, the worst year since Standard and Poor’s began publishing the index in 1957. The year began with continued concerns over the subprime mortgage crisis and weakening housing market. Bear Stearns collapsed in March and the Federal Reserve helped orchestrate a takeover of Bear Stearns by JPMorgan Chase & Co. Fears of a recession increased throughout the year. Stock markets started to freefall after Lehman Brothers Holdings, Inc. bankruptcy on September 15. One-month LIBOR rates spiked to 4.5875% as banks required a higher premium for taking on credit risk from other banks. Volatility also spiked as the VIX increased to a high of 80.86%.
To help calm financial markets the U.S. government rescued the Federal National Mortgage Association known as Fannie Mae, the Federal Home Loan Mortgage Corp. known as Freddie Mac and American International Group (“AIG”), as well as firming up the balance sheets of major U.S. banks. Many central banks around the globe coordinated interest rate cuts. Then, on October 8, many governments announced massive spending plans to help boost global economic activity. These actions appear to be stabilizing the financial markets as the S&P 500 Index ended the year at 903.25, up from its low of 752.44 on November 20. LIBOR rates have also fallen to less than half a percent and VIX decreased to 40% by year end.
Cumulative Fund Performance:
December 31, 1998 – December 31, 2008
December 31, 1998 – December 31, 2008
As expected, no sector provided positive returns for the year. Consumer staples, health care and utilities remained defensive and were the best-performing sectors for 2008. Battered financials, materials and technology were the worst-performing sectors.
Rydex Inverse S&P 500 Strategy Fund returned 39.25% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. The Fund achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Ten | ||||||||||
Year | Year | Year | ||||||||||
INVERSE S&P 500 STRATEGY FUND | 39.25 | % | 2.96 | % | 1.99 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -1.38 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
NASDAQ-100® FUND
OBJECTIVE: Seeks to provide investment results that correspond to the performance of the NASDAQ-100 Index® on a daily basis.
Inception: May 7, 1997
The NASDAQ-100 Index was down 41.49% in 2008. As expected, technology stocks were hit hard by decreased economic activity as well as forecasts of weaker consumer demand. The financial crisis impacted global economies and even stocks with a large proportion of foreign revenues suffered from weaker demand overseas. Many stocks have correspondingly lowered their revenue and earnings guidance for upcoming quarters.
Technology companies have responded to weaker economic growth by reducing spending on research and development and restructuring (or modifying) business plans to help increase profitability. Apple Inc. held the largest weight in the index throughout the year with the NASDAQ-100 Index’s modified cap weighting methodology. The large weighting combined with Apple, Inc.’s -56.91% return weighed heavily on the index’s negative performance for the year.
Cumulative Fund Performance:
December 31, 1998 – December 31, 2008
December 31, 1998 – December 31, 2008
Rydex NASDAQ-100® Fund returned - -41.91% for the year. The Fund achieved a daily correlation over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100 Index.
* | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Ten | ||||||||||
Year | Year | Year | ||||||||||
NASDAQ-100® FUND | -41.91 | % | -4.36 | % | -5.40 | % | ||||||
NASDAQ-100 INDEX | -41.49 | % | -3.34 | % | -3.81 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The NASDAQ-100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Apple, Inc. | 8.5 | % | ||
Qualcomm, Inc. | 5.7 | % | ||
Microsoft Corp. | 4.8 | % | ||
Gilead Sciences, Inc. | 3.7 | % | ||
Google, Inc. — Class A | 3.6 | % | ||
Oracle Corp. | 3.1 | % | ||
Cisco Systems, Inc. | 2.7 | % | ||
Intel Corp. | 2.3 | % | ||
Amgen, Inc. | 2.3 | % | ||
Teva Pharmaceutical Industries Ltd. — SP ADR | 2.2 | % | ||
Top Ten Total | 38.9 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
INVERSE NASDAQ-100® STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that inversely correlates to the daily performance of the NASDAQ-100 Index.
Inception: May 21, 2001
The NASDAQ-100 Index was down 41.49% in 2008. As expected, technology stocks were hit hard by decreased economic activity as well as forecasts of weaker consumer demand. The financial crisis impacted global economies and even stocks with a large proportion of foreign revenues suffered from weaker demand overseas. Many stocks have correspondingly lowered their revenue and earnings guidance for upcoming quarters.
Technology companies have responded to weaker economic growth by reducing spending on research and development and restructuring (or modifying) business plans to help increase profitability.
Apple Inc. held the largest weight in the index throughout the year with the NASDAQ-100 Index’s modified cap weighting methodology. The large weighting combined with Apple, Inc.’s -56.91% return weighed heavily on the index’s negative performance for the year.
Cumulative Fund Performance:
May 21, 2001 – December 31, 2008
May 21, 2001 – December 31, 2008
Rydex Inverse NASDAQ-100® Strategy Fund returned 47.96% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index.
* | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (05/21/01) | ||||||||||
INVERSE NASDAQ -100® STRATEGY FUND | 47.96 | % | 2.94 | % | 1.77 | % | ||||||
NASDAQ-100 INDEX | -41.49 | % | -3.34 | % | -3.81 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The NASDAQ-100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
S&P 500 2x STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that correspond to 200% of the daily performance of the S&P 500 Index.
Inception: October 1, 2001
The S&P 500 Index was down 37.00% in 2008, the worst year since Standard and Poor’s began publishing the index in 1957. The year began with continued concerns over the subprime mortgage crisis and weakening housing market as Bear Stearns collapsed and the Federal Reserve helped orchestrate a takeover of the industry giant by JPMorgan Chase & Co. in March. Fears of a recession increased throughout the year as a highly chaotic atmosphere that came to characterize U.S. equity markets took hold. Stock markets started to freefall after Lehman Brothers Holdings, Inc. filed for bankruptcy on September 15. One-month LIBOR rates spiked to 4.5875% as banks required a higher premium for taking on credit risk from other banks. Volatility also spiked as the VIX increased to a high of 80.86%.
To help calm financial markets, the U.S. government rescued Fannie Mae, Freddie Mac and AIG and released an infusion of cash in the hopes of firming up the balance sheets of major U.S. banking institutions. Then, on October 8, many governments announced massive spending plans in a coordinated effort to help boost global economic activity. These actions appeared to stabilize the financial markets for a short time as the S&P 500 Index ended the year at 903.25—up from its low of 752.44 on November 20. LIBOR rates have also fallen to less than half a percent and VIX decreased to 40% by year end.
Cumulative Fund Performance:
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
As expected, no sector provided positive returns for the year. Consumer staples, health care and utilities remained defensive and were the best-performing sectors for 2008. Battered financials, materials and technology were the worst-performing sectors.
For the year, Rydex S&P 500 2x Strategy Fund returned -67.98%. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the S&P 500 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (10/01/01) | ||||||||||
S&P 500 2x STRATEGY FUND | -67.98 | % | -13.60 | % | -9.59 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -0.06 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Exxon Mobil Corp. | 3.2 | % | ||
Procter & Gamble Co. | 1.4 | % | ||
General Electric Co. | 1.3 | % | ||
AT&T, Inc. | 1.3 | % | ||
Johnson & Johnson, Inc. | 1.3 | % | ||
Chevron Corp. | 1.2 | % | ||
Microsoft Corp. | 1.2 | % | ||
Wal-Mart Stores, Inc. | 1.0 | % | ||
Wells Fargo & Co. | 1.0 | % | ||
Pfizer, Inc. | 0.9 | % | ||
Top Ten Total | 13.8 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
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
The NASDAQ-100 Index was down 41.49% in 2008. As expected, technology stocks were hit hard by decreased economic activity as well as forecasts of weaker consumer demand. The financial crisis impacted global economies and even stocks with a large proportion of foreign revenues suffered from weaker demand overseas. Many stocks have correspondingly lowered their revenue and earnings guidance for upcoming quarters.
Technology companies have responded to weaker economic growth by reducing spending on research and development and restructuring (or modifying) business plans to help increase profitability. Apple Inc. held the largest weight in the index throughout the year with the NASDAQ-100 Index’s modified cap weighting methodology. The large weighting combined with Apple, Inc.’s -56.91% return weighed heavily on the index’s negative performance for the year.
Cumulative Fund Performance:
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
Rydex NASDAQ-100® 2x Strategy Fund returned -72.60% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the NASDAQ-100 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
* | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (10/01/01) | ||||||||||
NASDAQ-100® 2x STRATEGY FUND | -72.60 | % | -16.42 | % | -12.31 | % | ||||||
NASDAQ-100 INDEX | -41.49 | % | -3.34 | % | 1.06 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The NASDAQ-100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Apple, Inc. | 7.5 | % | ||
Qualcomm, Inc. | 5.1 | % | ||
Microsoft Corp. | 4.2 | % | ||
Gilead Sciences, Inc. | 3.3 | % | ||
Google, Inc. — Class A | 3.2 | % | ||
Oracle Corp. | 2.7 | % | ||
Cisco Systems, Inc. | 2.4 | % | ||
Intel Corp. | 2.0 | % | ||
Amgen, Inc. | 2.0 | % | ||
Teva Pharmaceutical Industries Ltd. — SP ADR | 1.9 | % | ||
Top Ten Total | 34.3 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
MID-CAP 1.5x STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that correlate to that performance of the S&P MidCap 400™ Index. The Fund will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of its daily benchmark.
Inception: October 1, 2001
The S&P MidCap 400 Index was down 36.23% in 2008 and was in-line with the performance of the large-cap S&P 500 Index, which was down 37.00% for the year. The weaker housing market and unfolding financial crisis hurt mid-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.
The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and T-bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to rescue troubled firms culminated in large fiscal spending plans and coordinated interest rates cuts that helped calm financial markets by year-end.
Cumulative Fund Performance:
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
Rydex Mid-Cap 1.5x Strategy Fund returned - -54.83% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (10/01/01) | ||||||||||
MID-CAP 1.5x STRATEGY FUND | -54.83 | % | -6.36 | % | 0.68 | % | ||||||
S&P MIDCAP 400 INDEX | -36.23 | % | -0.08 | % | 4.62 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Everest Re Group Ltd. | 0.4 | % | ||
Vertex Pharmaceuticals, Inc. | 0.4 | % | ||
Health Care REIT, Inc. | 0.3 | % | ||
W.R. Berkley Corp. | 0.3 | % | ||
O’Reilly Automotive, Inc. | 0.3 | % | ||
New York Community Bancorp, Inc. | 0.3 | % | ||
Martin Marietta Materials, Inc. | 0.3 | % | ||
MDU Resources Group, Inc. | 0.3 | % | ||
SAIC, Inc. | 0.3 | % | ||
Church & Dwight Co., Inc. | 0.3 | % | ||
Top Ten Total | 3.2 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
INVERSE MID-CAP STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that inversely correspond to the daily performance of the S&P MidCap 400™ Index.
Inception: May 3, 2004
The S&P MidCap 400 Index was down 36.23% in 2008 and was in-line with the performance of the large-cap S&P 500 Index, which was down 37.00% for the year. The weaker housing market and unfolding financial crisis hurt mid-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.
The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and T-bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to rescue troubled firms culminated in large fiscal spending plans and coordinated interest rates cuts that helped calm financial markets by year-end.
Cumulative Fund Performance:
May 3, 2004 – December 31, 2008
May 3, 2004 – December 31, 2008
Rydex Inverse Mid-Cap Strategy Fund returned 34.42% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
INVERSE MID-CAP STRATEGY FUND | 34.42 | % | 0.53 | % | ||||||||
S&P MIDCAP 400 INDEX | -36.23 | % | -0.63 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
RUSSELL 2000® 2x STRATEGY FUND
OBJECTIVE: Seeks to provide investment returns that correspond to 200% of the daily performance of the Russell 2000® Index.
Inception: October 27, 2006
The Russell 2000 Index was down 33.79% in 2008. The weaker housing market and unfolding financial crisis hurt small-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.
The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and treasury bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to assist, and even rescue, troubled firms, announce large fiscal spending plans and coordinated interest rate cuts had helped calm financial markets by year-end.
Even with a flight to less risky assets, the Russell 2000 Index outperformed the large-cap S&P 500 Index, which was down 37.00% for the year. The main reason for the outperformance was that smaller-cap financial stocks outperformed larger-cap financial stocks even though financial stocks comprise a larger weight in the Russell 2000 Index than in the S&P 500 Index.
Cumulative Fund Performance:
October 27, 2006 – December 31, 2008
October 27, 2006 – December 31, 2008
Rydex Russell 2000® 2x Strategy Fund returned -66.18% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the Russell 2000 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (10/27/06) | |||||||||||
RUSSELL 2000® 2x STRATEGY FUND | -66.18 | % | -41.80 | % | ||||||||
RUSSELL 2000 INDEX | -33.79 | % | -16.68 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 2000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Ralcorp Holdings, Inc. | 0.2 | % | ||
Myriad Genetics, Inc. | 0.2 | % | ||
Alexion Pharmaceuticals, Inc. | 0.2 | % | ||
Waste Connections, Inc. | 0.2 | % | ||
Realty Income Corp. | 0.1 | % | ||
Piedmont Natural Gas Co. | 0.1 | % | ||
ITC Holdings Corp. | 0.1 | % | ||
Comstock Resources, Inc. | 0.1 | % | ||
OSI Pharmaceuticals, Inc. | 0.1 | % | ||
Westar Energy, Inc. | 0.1 | % | ||
Top Ten Total | 1.4 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
RUSSELL 2000® 1.5x STRATEGY FUND
OBJECTIVE: Seeks to provide investment returns that correlate to the performance of the Russell 2000 Index. The Fund will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of the benchmark.
Inception: October 1, 2001
The Russell 2000 Index was down 33.79% in 2008. The weaker housing market and unfolding financial crisis hurt small-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.
The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and treasury bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to assist, and even rescue, troubled firms, announce large fiscal spending plans and coordinated interest rates cuts had helped calm financial markets by year end.
Even with a flight to less risky assets, the Russell 2000 Index outperformed the large-cap S&P 500 Index, which was down 37.00% for the year. The main reason for the outperformance was that smaller-cap financial stocks outperformed larger-cap financial stocks even though financial stocks comprise a larger weight in the Russell 2000 Index than in the S&P 500 Index.
Cumulative Fund Performance:
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
Rydex Russell 2000 ® 1.5x Strategy Fund returned -51.36% for the year. It achieved a daily correlation of more than 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (10/01/01) | ||||||||||
RUSSELL 2000 ® 1.5x STRATEGY FUND | -51.36 | % | -6.54 | % | -0.34 | % | ||||||
RUSSELL 2000 INDEX | -33.79 | % | -0.93 | % | 4.52 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 2000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure 12 % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Ralcorp Holdings, Inc. | 0.3 | % | ||
Myriad Genetics, Inc. | 0.3 | % | ||
Alexion Pharmaceuticals, Inc. | 0.2 | % | ||
Waste Connections, Inc. | 0.2 | % | ||
Realty Income Corp. | 0.2 | % | ||
Piedmont Natural Gas Co. | 0.2 | % | ||
OSI Pharmaceuticals, Inc. | 0.2 | % | ||
ITC Holdings Corp. | 0.2 | % | ||
Comstock Resources, Inc. | 0.2 | % | ||
Westar Energy, Inc. | 0.2 | % | ||
Top Ten Total | 2.2 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
INVERSE RUSSELL 2000® STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that inversely correspond to daily performance of the Russell 2000 Index.
Inception: May 3, 2004
The Russell 2000 Index was down 33.79% in 2008. The weaker housing market and unfolding financial crisis hurt small-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.
The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and treasury bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to assist, and even rescue, troubled firms, announce large fiscal spending plans and coordinated interest rates cuts had helped calm financial markets by year end.
Even with a flight to less risky assets, the Russell 2000 ®Index outperformed the large-cap S&P 500 Index, which was down 37.00% for the year. The main reason for the outperformance was that smaller-cap financial stocks outperformed larger-cap
Cumulative Fund Performance:
May 3, 2004 – December 31, 2008
May 3, 2004 – December 31, 2008
financial stocks even though financial stocks comprise a larger weight in the Russell 2000 Index than in the S&P 500 Index.
Rydex Inverse Russell 2000 ® Strategy Fund returned 24.69% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of - -100% of the daily price movement of the Russell 2000 Index.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
INVERSE RUSSELL 2000 ® STRATEGY FUND | 24.69 | % | -0.86 | % | ||||||||
RUSSELL 2000 INDEX | -33.79 | % | -1.39 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 2000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
GOVERNMENT LONG BOND 1.2x STRATEGY FUND
OBJECTIVE: To provide investment results that corresponds 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 8, 1997
During the first quarter of 2008, volatility prevailed at the long end of the Treasury curve, as the market reacted alternately to the Federal Reserve’s remedial response to subprime issues and the overriding fear of recession. On April 30, the Fed lowered its target rate to 2.00%, following three previous rate cuts that began on January 22 at 4.25%.
During April through mid-September, investors awaited the outcome of lower Fed Funds rates and the unconventional means utilized by the Treasury and the Federal Reserve to end the crisis brought on by subprime mortgage write-downs and home foreclosures. The Federal Open Market Committee (“FOMC”) meetings through the second and third quarters introduced the Fed’s concern regarding the risk of inflation. The Long Bond yield, although volatile, remained within a narrow trading range and averaged 4.53% for the period.
In September and October, the U.S. placed the government-sponsored agencies (“GSEs”) into conservatorship and saved AIG. Lehman Brothers filed Chapter 11, Bank of America acquired Merrill Lynch and the auto industry was in need of a bailout. These and other unprecedented events led to increasing investor fear and uncertainty.
Cumulative Fund Performance:
December 31, 1998 – December 31, 2008
December 31, 1998 – December 31, 2008
In November, investors fled to the safety of Treasuries. The 30-year bond yield reached historical lows and closed out the year at 2.68%.
The Government Long Bond 1.2x Strategy Fund benefits from a falling interest rate environment. Since, the 30-year bond yield was, on average, lower, the Fund adhered to its objective and closed up 44.87%.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Ten | ||||||||||
Year | Year | Year | ||||||||||
GOVERNMENT LONG BOND 1.2x STRATEGY FUND | 44.87 | % | 12.46 | % | 7.33 | % | ||||||
PRICE MOVEMENT OF LONG TREASURY BOND | 26.53 | % | 5.73 | % | 2.19 | % | ||||||
BARCLAYS CAPITAL LONG TREASURY BOND INDEX | 24.03 | % | 9.73 | % | 8.10 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Barclays Capital Long Treasury Bond Index is an unmanaged bond index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported return. The price movement of the Long Treasury Bond represents a cumulative percentage change in its closing price. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in U.S. Government securities and in derivative instruments such as futures and options contracts.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
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.
Inception: May 1, 2003
During the first quarter of 2008, the Federal Reserve continued its response to the subprime mortgage crisis adding volatility to the 30-year bond.
The Fed dropped the central bank’s target rate to 2.00% on April 30 from 4.25% in January, pushing short-term rates lower. Since the FOMC meetings during the second and third quarters indicated a risk of inflation, the Long Bond maintained an average yield of 4.53% for the period.
The Treasury and the Federal Reserve brought forth tools to save the GSE’s, investment and commercial banks, insurance companies and others in an unparalleled effort to keep the economy moving.
Cumulative Fund Performance: May 1, 2003 – December 31, 2008 | ||
In November, with little sign of a near-term recovery, fear and uncertainty impacted the Treasury market resulting in a flight to quality that took long Treasuries to historic lows and the 30-year bond to 2.68% by year-end.
Since the 30-year bond yield was, on average, lower over the period, the Fund closed down 30.21%.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (05/01/03) | ||||||||||
INVERSE GOVERNMENT LONG BOND STRATEGY FUND | -30.21 | % | -9.42 | % | -8.47 | % | ||||||
PRICE MOVEMENT OF LONG TREASURY BOND | 26.53 | % | 5.73 | % | 4.20 | % | ||||||
BARCLAYS CAPITAL LONG TREASURY BOND INDEX | 24.03 | % | 9.73 | % | 8.55 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Barclays Capital Long Treasury Bond Index is an unmanaged bond index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported return. The price movement of the Long Treasury Bond represents a cumulative percentage change in its closing price. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in short sales and derivative instruments such as futures contracts, and options on index futures.
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
EUROPE 1.25x STRATEGY FUND
OBJECTIVE: Seeks to provide investment returns that correlate to the performance of the Dow Jones STOXX® 50 Index. The Fund will attempt to consistently apply leverage to increase the Fund’s exposure to 125% of its benchmark.
Inception: October 1, 2001
International markets were not immune to the financial crisis, which spread from the U.S. Continued concerns about a weakening global economy weighed heavily on stocks around the world. The Dow Jones STOXX 50 Index was down 43.65% for the year as European stocks underperformed U.S. stocks. Weakening European currencies detracted from the index’s overall performance in terms of U.S. dollars. Rydex Europe 1.25x Strategy Fund returned -54.86% for the year. It achieved a daily correlation of more than 97% to its benchmark of 125% of the daily price movement of the Dow Jones STOXX 50 Index.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent
Cumulative Fund Performance:
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (10/01/01) | ||||||||||
EUROPE 1.25x STRATEGY FUND | -54.86 | % | -3.97 | % | -0.88 | % | ||||||
DOW JONES STOXX 50 INDEX | -43.65 | % | 0.26 | % | 2.58 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Dow Jones STOXX 50 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Novartis AG — SP ADR | 5.5 | % | ||
BP PLC — SP ADR | 4.6 | % | ||
GlaxoSmithKline PLC — SP ADR | 4.6 | % | ||
Telefonica SA — SP ADR | 4.2 | % | ||
Total SA — SP ADR | 4.1 | % | ||
Vodafone Group PLC — SP ADR | 3.8 | % | ||
France Telecom SA — SP ADR | 3.6 | % | ||
Sanofi-Aventis — SP ADR | 3.6 | % | ||
Royal Dutch Shell PLC — SP ADR | 3.2 | % | ||
HSBC Holdings PLC — SP ADR | 2.8 | % | ||
Top Ten Total | 40.0 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
JAPAN 1.25x STRATEGY FUND
OBJECTIVE: The Japan 1.25x Strategy Fund seeks to provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the Topix 100 Index.
Inception: October 1, 2001
International markets were not immune to the financial crisis, which spread from the U.S. in 2008. Continued concerns about a weakening global economy weighed heavily on stocks around the world.
Japanese stocks outperformed U.S. stocks as the S&P 500 was down 37.00%. The strengthening Japanese Yen added to the overall Index’s performance in terms of U.S. dollars. As a result, the Rydex Japan 1.25x Strategy Fund returned - -32.97% for the year. The Fund achieved a daily correlation of more than 91% to its benchmark.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent dis-
Cumulative Fund Performance:
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
crepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Since Inception | ||||||||||
Year | Year | (10/01/01) | ||||||||||
JAPAN 1.25x STRATEGY FUND | -32.97 | % | -3.64 | % | -2.38 | % | ||||||
TOPIX 100 INDEX | -30.06 | % | -0.62 | % | 0.56 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Topix 100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
DOW 2x STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that correspond to 200% of the daily performance of the Dow Jones Industrial AverageSM Index.
Inception: May 3, 2004
The Dow Jones Industrial Average Index (“DJIA”) was down a historic 31.93% in 2008. The year began with continued concerns over the subprime mortgage crisis and weakening housing market. Stock markets started to freefall after Lehman Brothers Holding’s Inc. bankruptcy on September 15. Inter-bank lending rates and volatility spiked and investors fled risky assets such as stocks to more conservative investments such as government bonds and bills.
Fears of a global recession increased throughout the year, culminating with the U.S. government attempting to calm global financial markets by rescuing Fannie Mae, Freddie Mac and AIG, while also shoring up the balance sheets of major U.S. banks. This unprecedented action helped to lower lending rates and volatility by the close of 2008.
Two stocks that seemed to weather the 2008 crisis were McDonald’s Corp. and Wal-Mart Stores, Inc., while AIG, Boeing Co. and American Express contributed the most to the DJIA’s negative performance for the year.
Cumulative Fund Performance:
May 3, 2004 – December 31, 2008
May 3, 2004 – December 31, 2008
Rydex Dow 2x Strategy Fund returned -61.71% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the Dow Jones Industrial Average.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
DOW 2x STRATEGY FUND | -61.71 | % | -11.53 | % | ||||||||
DOW JONES INDUSTRIAL AVERAGE INDEX | -31.93 | % | -1.05 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Dow Jones Industrial Average Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||||||||||
International Business Machines Corp. | 4.5 | % | ||||||||||
Exxon Mobil Corp. | 4.3 | % | ||||||||||
Chevron Corp. | 4.0 | % | ||||||||||
McDonald’s Corp. | 3.3 | % | ||||||||||
Procter & Gamble Co. | 3.3 | % | ||||||||||
Johnson & Johnson, Inc. | 3.2 | % | ||||||||||
3M Co. | 3.1 | % | ||||||||||
Wal-Mart Stores, Inc. | 3.0 | % | ||||||||||
United Technologies Corp. | 2.9 | % | ||||||||||
Coca-Cola Co. | 2.4 | % | ||||||||||
Top Ten Total | 34.0 | % | ||||||||||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)
INVERSE DOW 2x STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that inversely correspond to 200% of the daily performance of the Dow Jones Industrial Average Index.
Inception: May 3, 2004
The DJIA was down a historic 31.93% in 2008. The year began with continued concerns over the subprime mortgage crisis and weakening housing market. Stock markets started to freefall after Lehman Brothers Holding’s Inc. bankruptcy on September 15. Inter-bank lending rates and volatility spiked and investors fled risky assets such as stocks to more conservative investments such as government bonds and bills.
Fears of a global recession increased throughout the year culminating with the U.S. government attempting to calm global financial markets by rescuing Fannie Mae, Freddie Mac and AIG, while also shoring up the balance sheets of major U.S. banks. This unprecedented action helped to lower lending rates and volatility by the close of 2008.
Two stocks that seemed to weather the 2008 crisis were McDonald’s Corp. and Wal-Mart Stores, Inc., while AIG, Boeing Co. and American Express contributed the most to the DJIA’s negative performance for the year.
Rydex Inverse Dow 2x Strategy Fund returned 60.84% for the year. The SEC’s three-week ban on shorting stocks in fall 2008
Cumulative Fund Performance: May 3, 2004 – December 31, 2008 | ||
had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of -200% of the daily price movement of the Dow Jones Industrial Average.
The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
INVERSE DOW 2x STRATEGY FUND | 60.84 | % | 0.64 | % | ||||||||
DOW JONES INDUSTRIAL AVERAGE INDEX | -31.93 | % | -1.05 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Dow Jones Industrial Average Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
SMALL-CAP VALUE FUND
OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P SmallCap 600/Citigroup Pure Value Index.
Inception: May 3, 2004
The S&P SmallCap 600/Citigroup Pure Value Index was down 41.73% for the year. Across all pure style boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Larger-cap stocks were hurt more than smaller-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.
The utilities sector was the only one that contributed positive returns for the year. The worst-performing sectors were technology and energy. Rydex Small-Cap Value Fund returned - -43.50% for the year.
Cumulative Fund Performance:
May 3, 2004 – December 31, 2008
May 3, 2004 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
SMALL-CAP VALUE FUND | -43.50 | % | -8.64 | % | ||||||||
S&P SMALLCAP 600/CITIGROUP PURE VALUE INDEX | -41.73 | % | -5.20 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P SmallCap 600/Citigroup Pure Value Index is and unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
BankAtlantic Bancorp, Inc. — Class A | 2.0 | % | ||
Brunswick Corp. | 2.0 | % | ||
Standard Motor Products, Inc. | 2.0 | % | ||
OfficeMax Inc. | 1.9 | % | ||
Sonic Automotive, Inc. | 1.8 | % | ||
Lithia Motors, Inc. — Class A | 1.8 | % | ||
Insight Enterprises, Inc. | 1.7 | % | ||
AH Belo Corp. — Class A | 1.7 | % | ||
Guaranty Financial Group, Inc. | 1.6 | % | ||
Oxford Industries, Inc. | 1.6 | % | ||
Top Ten Total | 18.1 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
MID-CAP VALUE FUND
OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P MidCap 400/Citigroup Pure Value Index.
Inception: May 3, 2004
The S&P Midcap 400/Citigroup Pure Value Index was down 42.59% for the year. Across all pure style boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Larger-cap stocks were hurt more than smaller-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.
Energy was the only sector that contributed positive returns for the year. The worst-performing sectors were consumer discretionary and materials. Rydex Mid-Cap Value Fund returned -43.63% for the year.
Cumulative Fund Performance: May 3, 2004 – December 31, 2008 | ||
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
MID-CAP VALUE FUND | -43.63 | % | -5.09 | % | ||||||||
S&P MIDCAP 400/CITIGROUP PURE VALUE INDEX | -42.59 | % | -3.16 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400/Citigroup Pure Value Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
ArvinMeritor, Inc. | 2.8 | % | ||
Temple-Inland, Inc. | 2.7 | % | ||
Colonial BancGroup, Inc. | 2.6 | % | ||
Oshkosh Corp. | 2.6 | % | ||
Modine Manufacturing Co. | 2.2 | % | ||
Ashland, Inc. | 2.2 | % | ||
Protective Life Corp. | 2.1 | % | ||
Furniture Brands International, Inc. | 2.0 | % | ||
Belo Corp. — Class A | 1.8 | % | ||
Kelly Services, Inc. — Class A | 1.8 | % | ||
Top Ten Total | 22.8 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
LARGE-CAP VALUE FUND
OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P 500/Citigroup Pure Value Index.
Inception: May 3, 2004
The S&P 500/Citigroup Pure Value Index was down 47.88% for the year. Across all pure style boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Large-cap stocks were hurt more than small-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.
There were no specific sectors that provided positive returns for the year. The best-performing sectors were utilities and energy. The worst-performing sectors were financials and technology. Rydex Large-Cap Value Fund returned - -48.65% for the year.
Cumulative Fund Performance:
May 3, 2004 – December 31, 2008
May 3, 2004 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
LARGE-CAP VALUE FUND | -48.65 | % | -8.23 | % | ||||||||
S&P 500/CITIGROUP PURE VALUE INDEX | -47.88 | % | -3.97 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500/Citigroup Pure Value Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
ProLogis | 3.5 | % | ||
SUPERVALU, INC. | 2.3 | % | ||
CIT Group, Inc. | 2.3 | % | ||
Hartford Financial Services Group, Inc. | 2.3 | % | ||
XL Capital Ltd. | 2.2 | % | ||
Tesoro Corp. | 2.1 | % | ||
American Capital Ltd. | 2.0 | % | ||
Office Depot, Inc. | 2.0 | % | ||
American International Group, Inc. | 2.0 | % | ||
Genworth Financial, Inc. — Class A | 1.8 | % | ||
Top Ten Total | 22.5 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
SMALL-CAP GROWTH FUND
OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P SmallCap 600/CitiGroup Pure Growth Index.
Inception: May 3, 2004
The S&P SmallCap 600/Citigroup Pure Growth Index was down 33.11% for the year. Across all pure boxes small-cap stocks tended to outperform large-cap stocks and growth stocks tended to outperform value stocks. Large-cap stocks were hurt more than small-caps over the past year as the global economy slipped into a recession. Growth stocks beat out value stocks in 2008 as investors placed a premium on growth in a slowing economic environment.
The best-performing sectors for 2008 were industrials and financials. The worst-performing sectors remained energy and consumer staples. Rydex Small-Cap Growth Fund returned -34.32% for the year.
Cumulative Fund Performance: May 3, 2004 – December 31, 2008 | ||
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
SMALL-CAP GROWTH FUND | -34.32 | % | -2.96 | % | ||||||||
S&P SMALLCAP 600/CITIGROUP PURE GROWTH INDEX | -33.11 | % | -0.79 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P SmallCap 600/Citigroup Pure Growth Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Palomar Medical Technologies, Inc. | 1.3 | % | ||
TradeStation Group, Inc. | 1.2 | % | ||
Viropharma, Inc. | 1.2 | % | ||
NutriSystem, Inc. | 1.2 | % | ||
Stamps.com, Inc. | 1.2 | % | ||
True Religion Apparel, Inc. | 1.2 | % | ||
Cubist Pharmaceuticals, Inc. | 1.2 | % | ||
Basic Energy Services, Inc. | 1.1 | % | ||
Intevac, Inc. | 1.1 | % | ||
LCA-Vision, Inc. | 1.1 | % | ||
Top Ten Total | 11.8 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
MID-CAP GROWTH FUND
OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P MidCap 400/Citigroup Pure Growth Index.
Inception: May 3, 2004
The S&P MidCap 400/Citigroup Pure Growth Index was down 35.17% for the year. Across all boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Larger-cap stocks were hurt more than smaller-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.
No sectors provided positive returns for the year. The best-performing sectors were financials and consumer discretionary. The worst-performing sectors were materials and energy. Rydex Mid-Cap Growth Fund returned -36.12% for the year.
Cumulative Fund Performance: May 3, 2004 – December 31, 2008 | ||
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
MID-CAP GROWTH FUND | -36.12 | % | -3.09 | % | ||||||||
S&P MIDCAP 400/CITIGROUP PURE GROWTH INDEX | -35.17 | % | -0.82 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400/Citigroup Pure Growth Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Sepracor, Inc. | 1.8 | % | ||
Sotheby’s | 1.8 | % | ||
United Therapeutics Corp. | 1.8 | % | ||
Hansen Natural Corp. | 1.8 | % | ||
J. Crew Group, Inc. | 1.7 | % | ||
CommScope, Inc. | 1.6 | % | ||
Cliffs Natural Resources, Inc. | 1.5 | % | ||
Lam Research Corp. | 1.5 | % | ||
Joy Global, Inc. | 1.5 | % | ||
Energizer Holdings, Inc. | 1.4 | % | ||
Top Ten Total | 16.4 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
LARGE-CAP GROWTH FUND
OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P 500/Citigroup Pure Growth Index.
Inception: May 3, 2004
The S&P 500/Citigroup Pure Growth Index was down 38.99% for the year. Across all pure style boxes, small-cap stocks tended to outperform their large-cap counterparts and growth stocks tended to outperform value stocks. Large-cap stocks were hurt more than small-caps over the past year, as the global economy slipped into a recession. That being said, growth stocks beat out value stocks in 2008 as investors placed a premium on growth strategies in a slowing economic environment.
Understandably, no sectors provided positive returns for the year. The best-performing sectors were consumer staples and health care. The worst performing were utilities and financials.
Rydex Large-Cap Growth Fund returned -39.80% for the year.
Cumulative Fund Performance: May 3, 2004 – December 31, 2008 | ||
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Since Inception | |||||||||||
Year | (05/03/04) | |||||||||||
LARGE-CAP GROWTH FUND | -39.80 | % | -7.19 | % | ||||||||
S&P500/CITIGROUP PURE GROWTH INDEX | -38.99 | % | -3.83 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500/Citigroup Pure Growth Index is and unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||||||
Celgene Corp. | 1.5 | % | ||||||
Intuitive Surgical, Inc. | 1.5 | % | ||||||
Titanium Metals Corp. | 1.5 | % | ||||||
Sunoco, Inc. | 1.4 | % | ||||||
IntercontinentalExchange, Inc. | 1.4 | % | ||||||
Sears Holdings Corp. | 1.3 | % | ||||||
Nucor Corp. | 1.3 | % | ||||||
NYSE Euronext | 1.3 | % | ||||||
Agilent Technologies, Inc. | 1.3 | % | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 1.2 | % | ||||||
Top Ten Total | 13.7 | % | ||||||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: The U.S. Government Money Market Fund seeks to provide security of principal, high current income, and liquidity.
Inception: May 7, 1997
As subprime mortgage delinquencies and mortgage foreclosures increased and profits at mortgage banks continued to fall, a credit crisis unfolded in 2008. The U.S. Treasury and the Federal Reserve brought forth unconventional tools to support the financial markets and stimulate consumer spending and economic growth.
Throughout the year, it was difficult to fathom the demise of Lehman Brothers Holdings, Inc., the Government’s decision to rescue banks, insurers and auto companies, the conservatorship of Fannie Mae and Freddie Mac, the issuance of money market fund protective insurance and even negative yields for the 3-month T-Bill.
The Federal Reserve stepped up its easing operations through eight scheduled and two interim meetings. By December 16, the central bank had pushed its target rate down to a range of 0.25% from 4.25% to encourage bank lending and consumer borrowing.
As a result, money market rates dropped to the lowest in history, forcing some funds to close to new investors.
The Rydex U.S. Government Money Market Fund holds GSEs and repurchase agreements (Repos), collateralized by U.S Treasuries.
For 2008, the Rydex U.S. Government Money Market Fund returned 1.14%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
One | Five | Ten | ||||||||||
Year | Year | Year | ||||||||||
U.S. GOVERNMENT MONEY MARKET FUND | 1.14 | % | 2.21 | % | 2.33 | % | ||||||
Holdings Diversification (Market Exposure as % of Net Assets)
FAB — Federal Agency Bonds
FADN — Federal Agency Discount Notes
The Fund invests primarily in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS
December 31, 2008
NOVA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 71.8% | ||||||||
INFORMATION TECHNOLOGY 11.0% | ||||||||
Microsoft Corp. | 24,490 | $ | 476,086 | |||||
International Business Machines Corp. | 4,300 | 361,888 | ||||||
Cisco Systems, Inc.* | 18,740 | 305,462 | ||||||
Hewlett-Packard Co. | 7,833 | 284,260 | ||||||
Intel Corp. | 17,800 | 260,948 | ||||||
Apple, Inc.* | 2,849 | 243,162 | ||||||
Google, Inc. — Class A* | 765 | 235,352 | ||||||
Oracle Corp.* | 12,546 | 222,441 | ||||||
Qualcomm, Inc. | 5,303 | 190,006 | ||||||
EMC Corp* | 6,540 | 68,474 | ||||||
Texas Instruments, Inc. | 4,150 | 64,408 | ||||||
Automatic Data Processing, Inc. | 1,630 | 64,124 | ||||||
Dell, Inc.* | 5,539 | 56,719 | ||||||
Yahoo!, Inc.* | 4,440 | 54,168 | ||||||
eBay, Inc.* | 3,440 | 48,022 | ||||||
Corning, Inc. | 4,980 | 47,459 | ||||||
Applied Materials, Inc. | 4,302 | 43,579 | ||||||
Symantec Corp.* | 2,679 | 36,220 | ||||||
Adobe Systems, Inc.* | 1,700 | 36,193 | ||||||
MasterCard, Inc. | 230 | 32,874 | ||||||
Western Union Co. | 2,290 | 32,839 | ||||||
Motorola, Inc. | 7,258 | 32,153 | ||||||
Juniper Networks, Inc.* | 1,690 | 29,592 | ||||||
Paychex, Inc. | 1,029 | 27,042 | ||||||
Intuit, Inc.* | 1,030 | 24,504 | ||||||
Broadcom Corp. — Class A* | 1,415 | 24,013 | ||||||
Tyco Electronics Ltd. | 1,470 | 23,829 | ||||||
CA, Inc. | 1,260 | 23,348 | ||||||
Xerox Corp. | 2,768 | 22,061 | ||||||
Fiserv, Inc.* | 510 | 18,549 | ||||||
Analog Devices, Inc. | 928 | 17,651 | ||||||
Agilent Technologies, Inc.* | 1,120 | 17,506 | ||||||
Computer Sciences Corp.* | 488 | 17,148 | ||||||
McAfee, Inc.* | 490 | 16,939 | ||||||
Cognizant Technology | ||||||||
Solutions Corp. — Class A* | 928 | 16,760 | ||||||
Electronic Arts, Inc.* | 1,033 | 16,569 | ||||||
Harris Corp. | 430 | 16,362 | ||||||
BMC Software, Inc.* | 600 | 16,146 | ||||||
Altera Corp. | 950 | 15,875 | ||||||
Linear Technology Corp. | 710 | 15,705 | ||||||
Xilinx, Inc. | 879 | 15,664 | ||||||
NetApp, Inc.* | 1,064 | 14,864 | ||||||
Affiliated Computer Services, Inc. — Class A* | 310 | 14,245 | ||||||
Autodesk, Inc.* | 719 | 14,128 | ||||||
Nvidia Corp.* | 1,720 | 13,880 | ||||||
Citrix Systems, Inc.* | 580 | 13,671 | ||||||
Flir Systems, Inc.* | 440 | 13,499 | ||||||
Amphenol Corp. | 560 | 13,429 | ||||||
VeriSign, Inc.* | 617 | 11,772 |
MARKET | ||||||||
SHARES | VALUE | |||||||
KLA-Tencor Corp. | 540 | $ | 11,767 | |||||
Microchip Technology, Inc. | 580 | 11,327 | ||||||
Salesforce.com, Inc.* | 340 | 10,883 | ||||||
MEMC Electronic Materials, Inc.* | 719 | 10,267 | ||||||
Fidelity National Information Services, Inc. | 610 | 9,925 | ||||||
Sun Microsystems, Inc.* | 2,370 | 9,053 | ||||||
Total System Services, Inc. | 630 | 8,820 | ||||||
Teradata Corp.* | 560 | 8,305 | ||||||
Akamai Technologies, Inc.* | 540 | 8,149 | ||||||
SanDisk Corp.* | 720 | 6,912 | ||||||
LSI Logic Corp.* | 2,070 | 6,810 | ||||||
Lexmark International, Inc.* | 250 | 6,725 | ||||||
Molex, Inc. | 450 | 6,521 | ||||||
Micron Technology, Inc.* | 2,449 | 6,465 | ||||||
National Semiconductor Corp. | 615 | 6,193 | ||||||
QLogic Corp.* | 410 | 5,510 | ||||||
Compuware Corp.* | 790 | 5,333 | ||||||
Tellabs, Inc.* | 1,269 | 5,228 | ||||||
Jabil Circuit, Inc. | 668 | 4,509 | ||||||
Novell, Inc.* | 1,105 | 4,298 | ||||||
Advanced Micro Devices, Inc.* | 1,952 | 4,216 | ||||||
Novellus Systems, Inc.* | 310 | 3,825 | ||||||
JDS Uniphase Corp.* | 695 | 2,537 | ||||||
Convergys Corp.* | 390 | 2,500 | ||||||
Teradyne, Inc.* | 541 | 2,283 | ||||||
Ciena Corp.* | 290 | 1,943 | ||||||
Total Information Technology | 3,851,892 | |||||||
HEALTH CARE 10.6% | ||||||||
Johnson & Johnson, Inc. | 8,888 | 531,769 | ||||||
Pfizer, Inc. | 21,593 | 382,412 | ||||||
Abbott Laboratories | 4,969 | 265,196 | ||||||
Merck & Company, Inc. | 6,770 | 205,808 | ||||||
Amgen, Inc.* | 3,385 | 195,484 | ||||||
Wyeth | 4,261 | 159,830 | ||||||
Gilead Sciences, Inc.* | 2,949 | 150,812 | ||||||
Bristol-Myers Squibb Co. | 6,336 | 147,312 | ||||||
Eli Lilly & Co. | 3,194 | 128,622 | ||||||
Medtronic, Inc. | 3,579 | 112,452 | ||||||
Baxter International, Inc. | 1,990 | 106,644 | ||||||
UnitedHealth Group, Inc. | 3,870 | 102,942 | ||||||
Schering-Plough Corp. | 5,207 | 88,675 | ||||||
Celgene Corp.* | 1,470 | 81,262 | ||||||
WellPoint, Inc.* | 1,627 | 68,546 | ||||||
Medco Health Solutions, Inc.* | 1,590 | 66,637 | ||||||
Covidien Ltd. | 1,609 | 58,310 | ||||||
Genzyme Corp.* | 870 | 57,742 | ||||||
Becton, Dickinson & Co. | 779 | 53,276 | ||||||
Thermo Fisher Scientific, Inc.* | 1,349 | 45,960 | ||||||
Biogen Idec, Inc.* | 925 | 44,058 | ||||||
Express Scripts, Inc.* | 790 | 43,434 | ||||||
Aetna, Inc. | 1,480 | 42,180 | ||||||
Cardinal Health, Inc. | 1,150 | 39,640 | ||||||
Allergan, Inc. | 978 | 39,433 |
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
NOVA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Boston Scientific Corp.* | 4,809 | $ | 37,222 | |||||
St. Jude Medical, Inc.* | 1,100 | 36,256 | ||||||
McKesson Corp. | 879 | 34,044 | ||||||
Stryker Corp. | 780 | 31,161 | ||||||
Zimmer Holdings, Inc.* | 720 | 29,102 | ||||||
C.R. Bard, Inc. | 320 | 26,963 | ||||||
Quest Diagnostics, Inc. | 509 | 26,422 | ||||||
Forest Laboratories, Inc.* | 969 | 24,680 | ||||||
Laboratory Corporation of America Holdings* | 350 | 22,543 | ||||||
Humana, Inc.* | 535 | 19,945 | ||||||
AmerisourceBergen Corp. | 500 | 17,830 | ||||||
Cephalon, Inc.* | 220 | 16,949 | ||||||
Intuitive Surgical, Inc.* | 130 | 16,509 | ||||||
DaVita, Inc.* | 329 | 16,309 | ||||||
CIGNA Corp. | 878 | 14,794 | ||||||
Varian Medical Systems, Inc.* | 400 | 14,016 | ||||||
Hospira, Inc.* | 510 | 13,678 | ||||||
DENTSPLY International, Inc. | 480 | 13,555 | ||||||
Life Technologies Corp.* | 550 | 12,820 | ||||||
Waters Corp.* | 310 | 11,361 | ||||||
Mylan Laboratories, Inc.* | 980 | 9,692 | ||||||
Millipore Corp.* | 180 | 9,274 | ||||||
Watson Pharmaceuticals, Inc.* | 340 | 9,034 | ||||||
IMS Health, Inc. | 579 | 8,778 | ||||||
King Pharmaceuticals, Inc.* | 790 | 8,390 | ||||||
Coventry Health Care, Inc.* | 480 | 7,142 | ||||||
Patterson Companies, Inc.* | 290 | 5,438 | ||||||
PerkinElmer, Inc. | 380 | 5,286 | ||||||
Tenet Healthcare Corp.* | 1,325 | 1,524 | ||||||
Total Health Care | 3,719,153 | |||||||
ENERGY 9.6% | ||||||||
Exxon Mobil Corp. | 16,280 | 1,299,632 | ||||||
Chevron Corp. | 6,510 | 481,545 | ||||||
ConocoPhillips | 4,770 | 247,086 | ||||||
Schlumberger Ltd. | 3,830 | 162,124 | ||||||
Occidental Petroleum Corp. | 2,590 | 155,374 | ||||||
Devon Energy Corp. | 1,409 | 92,585 | ||||||
Apache Corp. | 1,065 | 79,374 | ||||||
XTO Energy, Inc. | 1,845 | 65,073 | ||||||
Marathon Oil Corp. | 2,260 | 61,834 | ||||||
Anadarko Petroleum Corp. | 1,470 | 56,668 | ||||||
EOG Resources, Inc. | 800 | 53,264 | ||||||
Halliburton Co. | 2,860 | 51,995 | ||||||
Hess Corp. | 909 | 48,759 | ||||||
Valero Energy Corp. | 1,650 | 35,706 | ||||||
National-Oilwell Varco, Inc.* | 1,335 | 32,627 | ||||||
Southwestern Energy Co.* | 1,100 | 31,867 | ||||||
Baker Hughes, Inc. | 980 | 31,429 | ||||||
Spectra Energy Corp. | 1,960 | 30,850 | ||||||
Chesapeake Energy Corp. | 1,726 | 27,909 | ||||||
Noble Energy, Inc. | 550 | 27,071 | ||||||
Murphy Oil Corp. | 610 | 27,053 | ||||||
Williams Companies, Inc. | 1,849 | 26,774 | ||||||
Weatherford International Ltd.* | 2,180 | 23,588 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Peabody Energy Corp. | 850 | $ | 19,338 | |||||
Noble Corp. | 850 | 18,777 | ||||||
El Paso Corp. | 2,250 | 17,618 | ||||||
Range Resources Corp. | 500 | 17,195 | ||||||
Consol Energy, Inc. | 580 | 16,576 | ||||||
Sunoco, Inc. | 370 | 16,080 | ||||||
Smith International, Inc. | 697 | 15,954 | ||||||
Cameron International Corp.* | 698 | 14,309 | ||||||
ENSCO International, Inc. | 450 | 12,776 | ||||||
Nabors Industries Ltd.* | 910 | 10,893 | ||||||
BJ Services Co. | 930 | 10,853 | ||||||
Cabot Oil & Gas Corp. | 330 | 8,580 | ||||||
Pioneer Natural Resources Co. | 380 | 6,148 | ||||||
Tesoro Corp. | 440 | 5,795 | ||||||
Rowan Companies, Inc. | 360 | 5,724 | ||||||
Massey Energy Co. | 270 | 3,723 | ||||||
Total Energy | 3,350,526 | |||||||
FINANCIALS 9.5% | ||||||||
Wells Fargo & Co. | 13,500 | 397,980 | ||||||
JPMorgan Chase & Co. | 11,943 | 376,563 | ||||||
Bank of America Corp. | 20,470 | 288,218 | ||||||
U.S. Bancorp | 5,615 | 140,431 | ||||||
Goldman Sachs Group, Inc. | 1,422 | 120,003 | ||||||
Citigroup, Inc. | 17,441 | 117,029 | ||||||
Bank of New York Mellon Corp. | 3,683 | 104,339 | ||||||
MetLife, Inc. | 2,539 | 88,510 | ||||||
Travelers Companies, Inc. | 1,870 | 84,524 | ||||||
American Express Co. | 3,704 | 68,709 | ||||||
AFLAC, Inc. | 1,490 | 68,302 | ||||||
PNC Financial Services Group, Inc. | 1,370 | 67,130 | ||||||
Chubb Corp. | 1,140 | 58,140 | ||||||
Allstate Corp. | 1,720 | 56,347 | ||||||
Morgan Stanley | 3,400 | 54,536 | ||||||
State Street Corp. | 1,382 | 54,354 | ||||||
BB&T Corp. | 1,768 | 48,549 | ||||||
Charles Schwab Corp. | 3,002 | 48,542 | ||||||
CME Group, Inc. | 210 | 43,703 | ||||||
Prudential Financial, Inc. | 1,360 | 41,154 | ||||||
Marsh & McLennan Companies, Inc. | 1,649 | 40,021 | ||||||
Capital One Financial Corp. | 1,253 | 39,958 | ||||||
Aon Corp. | 860 | 39,285 | ||||||
Simon Property Group, Inc. | 720 | 38,254 | ||||||
Northern Trust Corp. | 710 | 37,019 | ||||||
SunTrust Banks, Inc. | 1,134 | 33,498 | ||||||
Loews Corp. | 1,163 | 32,855 | ||||||
Progressive Corp. | 2,159 | 31,975 | ||||||
Public Storage | 400 | 31,800 | ||||||
Franklin Resources, Inc. | 480 | 30,614 | ||||||
T. Rowe Price Group, Inc. | 829 | 29,380 | ||||||
Hudson City Bancorp, Inc. | 1,674 | 26,717 | ||||||
Vornado Realty Trust | 438 | 26,433 | ||||||
Equity Residential | 874 | 26,063 | ||||||
NYSE Euronext | 847 | 23,191 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
NOVA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
HCP, Inc. | 810 | $ | 22,494 | |||||
Boston Properties, Inc. | 390 | 21,450 | ||||||
People’s United Financial, Inc. | 1,110 | 19,791 | ||||||
Unum Group | 1,060 | 19,716 | ||||||
IntercontinentalExchange, Inc.* | 230 | 18,961 | ||||||
Principal Financial Group, Inc. | 827 | 18,665 | ||||||
Plum Creek Timber Company, | ||||||||
Inc. (REIT) | 530 | 18,412 | ||||||
Invesco Ltd. | 1,230 | 17,761 | ||||||
Regions Financial Corp. | 2,221 | 17,679 | ||||||
Ameriprise Financial, Inc. | 690 | 16,118 | ||||||
Hartford Financial Services | ||||||||
Group, Inc. | 960 | 15,763 | ||||||
Lincoln National Corp. | 820 | 15,449 | ||||||
Fifth Third Bancorp | 1,852 | 15,298 | ||||||
Cincinnati Financial Corp. | 519 | 15,087 | ||||||
AvalonBay Communities, Inc. | 246 | 14,903 | ||||||
Discover Financial Services | 1,537 | 14,648 | ||||||
M&T Bank Corp. | 246 | 14,123 | ||||||
KeyCorp | 1,587 | 13,521 | ||||||
American International | ||||||||
Group, Inc. | 8,606 | 13,512 | ||||||
SLM Corp.* | 1,500 | 13,350 | ||||||
KIMCO Realty Corp. | 725 | 13,253 | ||||||
Host Hotels & Resorts, Inc. | 1,669 | 12,634 | ||||||
Moody’s Corp. | 620 | 12,456 | ||||||
Torchmark Corp. | 270 | 12,069 | ||||||
ProLogis | 850 | 11,807 | ||||||
Assurant, Inc. | 380 | 11,400 | ||||||
Marshall & Ilsley Corp. | 830 | 11,321 | ||||||
Leucadia National Corp.* | 570 | 11,286 | ||||||
Nasdaq Stock Market, Inc.* | 440 | 10,872 | ||||||
Legg Mason, Inc. | 450 | 9,860 | ||||||
Comerica, Inc. | 480 | 9,528 | ||||||
Zions Bancorporation | 365 | 8,946 | ||||||
Huntington Bancshares, Inc. | 1,165 | 8,924 | ||||||
First Horizon National Corp. | 661 | 6,986 | ||||||
CIT Group, Inc. | 1,150 | 5,221 | ||||||
Sovereign Bancorp, Inc.* | 1,744 | 5,197 | ||||||
Federated Investors, | ||||||||
Inc. — Class B | 277 | 4,698 | ||||||
Janus Capital Group, Inc. | 510 | 4,095 | ||||||
Genworth Financial, | ||||||||
Inc. — Class A | 1,389 | 3,931 | ||||||
XL Capital Ltd. | 1,060 | 3,922 | ||||||
Apartment Investment & | ||||||||
Management Co. — Class A | 320 | 3,696 | ||||||
CB Richard Ellis Group, | ||||||||
Inc. — Class A* | 710 | 3,067 | ||||||
MBIA, Inc.* | 600 | 2,442 | ||||||
American Capital Ltd. | 659 | 2,135 | ||||||
E*Trade Financial Corp.* | 1,799 | 2,069 | ||||||
Developers Diversified | ||||||||
Realty Corp. | 390 | 1,903 | ||||||
Total Financials | 3,344,545 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
CONSUMER STAPLES 9.2% | ||||||||
Procter & Gamble Co. | 9,560 | $ | 590,999 | |||||
Wal-Mart Stores, Inc. | 7,162 | 401,502 | ||||||
Coca-Cola Co. | 6,364 | 288,098 | ||||||
Philip Morris International, Inc. | 6,480 | 281,945 | ||||||
PepsiCo, Inc. | 4,968 | 272,097 | ||||||
CVS Caremark Corp. | 4,599 | 132,175 | ||||||
Kraft Foods, Inc. | 4,710 | 126,464 | ||||||
Colgate-Palmolive Co. | 1,618 | 110,898 | ||||||
Altria Group, Inc. | 6,593 | 99,291 | ||||||
Walgreen Co. | 3,167 | 78,130 | ||||||
Costco Wholesale Corp. | 1,380 | 72,450 | ||||||
Kimberly-Clark Corp. | 1,330 | 70,144 | ||||||
General Mills, Inc. | 1,070 | 65,003 | ||||||
Archer-Daniels-Midland Co. | 2,048 | 59,044 | ||||||
Kroger Co. | 2,088 | 55,144 | ||||||
Sysco Corp. | 1,917 | 43,976 | ||||||
H.J. Heinz Co. | 1,013 | 38,089 | ||||||
Kellogg Co. | 807 | 35,387 | ||||||
UST, Inc. | 475 | 32,956 | ||||||
Avon Products, Inc. | 1,369 | 32,897 | ||||||
Safeway, Inc. | 1,370 | 32,565 | ||||||
Lorillard, Inc. | 540 | 30,429 | ||||||
Clorox Co. | 440 | 24,446 | ||||||
ConAgra Foods, Inc. | 1,430 | 23,595 | ||||||
Molson Coors Brewing | ||||||||
Co. — Class B | 480 | 23,482 | ||||||
Sara Lee Corp. | 2,264 | 22,165 | ||||||
Reynolds American, Inc. | 538 | 21,687 | ||||||
Campbell Soup Co. | 660 | 19,807 | ||||||
Hershey Co. | 530 | 18,412 | ||||||
J.M. Smucker Co. | 380 | 16,477 | ||||||
Brown-Forman Corp. — Class B | 310 | 15,962 | ||||||
McCormick & Company, Inc. | 420 | 13,381 | ||||||
Dr Pepper Snapple Group, Inc.* | 805 | 13,081 | ||||||
Coca-Cola Enterprises, Inc. | 1,016 | 12,222 | ||||||
Estee Lauder Companies, | ||||||||
Inc. — Class A | 370 | 11,455 | ||||||
SUPERVALU, INC. | 680 | 9,928 | ||||||
Constellation Brands, | ||||||||
Inc. — Class A* | 620 | 9,777 | ||||||
Pepsi Bottling Group, Inc. | 430 | 9,679 | ||||||
Dean Foods Co.* | 490 | 8,805 | ||||||
Tyson Foods, Inc. — Class A | 970 | 8,497 | ||||||
Whole Foods Market, Inc. | 453 | 4,276 | ||||||
Total Consumer Staples | 3,236,817 | |||||||
INDUSTRIALS 8.0% | ||||||||
General Electric Co. | 33,624 | 544,709 | ||||||
United Parcel Service, | ||||||||
Inc. — Class B | 3,190 | 175,960 | ||||||
United Technologies Corp. | 3,040 | 162,944 | ||||||
3M Co. | 2,219 | 127,681 | ||||||
Boeing Co. | 2,349 | 100,232 | ||||||
Emerson Electric Co. | 2,460 | 90,061 | ||||||
Lockheed Martin Corp. | 1,065 | 89,545 |
32 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
NOVA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Caterpillar, Inc. | 1,930 | $ | 86,213 | |||||
Union Pacific Corp. | 1,620 | 77,436 | ||||||
Honeywell International, Inc. | 2,330 | 76,494 | ||||||
General Dynamics Corp. | 1,250 | 71,987 | ||||||
Burlington Northern Santa | ||||||||
Fe Corp. | 899 | 68,063 | ||||||
Raytheon Co. | 1,329 | 67,832 | ||||||
FedEx Corp. | 999 | 64,086 | ||||||
Norfolk Southern Corp. | 1,190 | 55,990 | ||||||
Deere & Co. | 1,369 | 52,460 | ||||||
Waste Management, Inc. | 1,570 | 52,030 | ||||||
Northrop Grumman Corp. | 1,050 | 47,292 | ||||||
Danaher Corp. | 820 | 46,420 | ||||||
Illinois Tool Works, Inc. | 1,260 | 44,163 | ||||||
CSX Corp. | 1,260 | 40,912 | ||||||
Paccar, Inc. | 1,164 | 33,290 | ||||||
Tyco International Ltd. | 1,510 | 32,616 | ||||||
CH Robinson Worldwide, Inc. | 540 | 29,716 | ||||||
L-3 Communications Holdings, Inc. | 380 | 28,036 | ||||||
Precision Castparts Corp. | 450 | 26,766 | ||||||
ITT Corporation | 575 | 26,444 | ||||||
Eaton Corp. | 530 | 26,346 | ||||||
Fluor Corp. | 580 | 26,025 | ||||||
Republic Services, Inc. | 1,030 | 25,534 | ||||||
Expeditors International of Washington, Inc. | 680 | 22,624 | ||||||
Parker Hannifin Corp. | 520 | 22,121 | ||||||
Southwest Airlines Co. | 2,369 | 20,421 | ||||||
Rockwell Collins, Inc. | 510 | 19,936 | ||||||
Dover Corp. | 599 | 19,719 | ||||||
Jacobs Engineering Group, Inc.* | 389 | 18,711 | ||||||
Ingersoll-Rand Co. — Class A | 1,024 | 17,766 | ||||||
Cummins, Inc. | 640 | 17,107 | ||||||
Pitney Bowes, Inc. | 660 | 16,817 | ||||||
W.W. Grainger, Inc. | 210 | 16,556 | ||||||
Cooper Industries Ltd. — Class A | 560 | 16,369 | ||||||
Rockwell Automation, Inc. | 450 | 14,508 | ||||||
Goodrich Corp. | 390 | 14,438 | ||||||
Fastenal Co. | 410 | 14,289 | ||||||
Stericycle, Inc.* | 270 | 14,062 | ||||||
Dun & Bradstreet Corp. | 170 | 13,124 | ||||||
Masco Corp. | 1,150 | 12,800 | ||||||
Avery Dennison Corp. | 340 | 11,128 | ||||||
Pall Corp. | 380 | 10,803 | ||||||
Textron, Inc. | 770 | 10,680 | ||||||
Equifax, Inc. | 400 | 10,608 | ||||||
Robert Half International, Inc. | 499 | 10,389 | ||||||
Iron Mountain, Inc.* | 417 | 10,312 | ||||||
Cintas Corp. | 420 | 9,757 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Flowserve Corp. | 180 | $ | 9,270 | |||||
RR Donnelley & Sons Co. | 660 | 8,963 | ||||||
Ryder System, Inc. | 180 | 6,980 | ||||||
Monster Worldwide, Inc.* | 390 | 4,715 | ||||||
Manitowoc Company, Inc. | 416 | 3,603 | ||||||
Total Industrials | 2,795,859 | |||||||
CONSUMER DISCRETIONARY 6.0% | ||||||||
McDonald’s Corp. | 3,567 | 221,832 | ||||||
Comcast Corp. — Class A | 9,220 | 155,634 | ||||||
Walt Disney Co. | 5,930 | 134,552 | ||||||
Home Depot, Inc. | 5,425 | 124,883 | ||||||
Time Warner, Inc. | 11,490 | 115,589 | ||||||
Lowe’s Companies, Inc. | 4,690 | 100,929 | ||||||
Target Corp. | 2,412 | 83,286 | ||||||
News Corp. — Class A | 7,371 | 67,002 | ||||||
Nike, Inc. — Class B | 1,259 | 64,209 | ||||||
Amazon.com, Inc.* | 1,025 | 52,562 | ||||||
Yum! Brands, Inc. | 1,480 | 46,620 | ||||||
Staples, Inc. | 2,284 | 40,929 | ||||||
DIRECTV Group, Inc.* | 1,750 | 40,092 | ||||||
Viacom, Inc. — Class B* | 1,960 | 37,358 | ||||||
Kohl’s Corp.* | 979 | 35,440 | ||||||
Johnson Controls, Inc. | 1,899 | 34,486 | ||||||
Carnival Corp. | 1,401 | 34,072 | ||||||
Best Buy Company, Inc. | 1,080 | 30,359 | ||||||
TJX Companies, Inc. | 1,330 | 27,358 | ||||||
Omnicom Group, Inc. | 1,000 | 26,920 | ||||||
Apollo Group, Inc. — Class A* | 340 | 26,051 | ||||||
H&R Block, Inc. | 1,085 | 24,651 | ||||||
McGraw-Hill Companies, Inc. | 1,010 | 23,422 | ||||||
Starbucks Corp.* | 2,359 | 22,316 | ||||||
Coach, Inc.* | 1,050 | 21,808 | ||||||
Bed Bath & Beyond, Inc.* | 830 | 21,099 | ||||||
The Gap, Inc. | 1,490 | 19,951 | ||||||
Fortune Brands, Inc. | 479 | 19,773 | ||||||
Genuine Parts Co. | 510 | 19,309 | ||||||
Sherwin-Williams Co. | 310 | 18,522 | ||||||
Mattel, Inc. | 1,148 | 18,368 | ||||||
Marriott International, Inc. — Class A | 940 | 18,283 | ||||||
CBS Corp. | 2,179 | 17,846 | ||||||
Ford Motor Co.* | 7,648 | 17,514 | ||||||
AutoZone, Inc.* | 120 | 16,736 | ||||||
VF Corp. | 279 | 15,281 | ||||||
J.C. Penney Company, Inc. | 709 | 13,967 | ||||||
Macy’s, Inc. | 1,349 | 13,962 | ||||||
Harley-Davidson, Inc. | 750 | 12,728 | ||||||
Darden Restaurants, Inc. | 440 | 12,399 | ||||||
Family Dollar Stores, Inc. | 450 | 11,732 | ||||||
Hasbro, Inc. | 400 | 11,668 | ||||||
GameStop Corp. — Class A* | 517 | 11,198 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 33 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
NOVA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
International Game | ||||||||
Technology, Inc. | 940 | $ | 11,177 | |||||
Starwood Hotels & Resorts Worldwide, Inc. | 590 | 10,561 | ||||||
Whirlpool Corp. | 240 | 9,924 | ||||||
Tiffany & Co. | 390 | 9,216 | ||||||
Limited Brands, Inc. | 870 | 8,735 | ||||||
Newell Rubbermaid, Inc. | 890 | 8,704 | ||||||
Stanley Works | 250 | 8,525 | ||||||
Wynn Resorts Ltd.* | 200 | 8,452 | ||||||
Polo Ralph Lauren Corp. | 175 | 7,947 | ||||||
Black & Decker Corp. | 190 | 7,944 | ||||||
Washington Post Co. — Class B | 20 | 7,805 | ||||||
Leggett & Platt, Inc. | 500 | 7,595 | ||||||
Pulte Homes, Inc. | 680 | 7,432 | ||||||
Snap-On, Inc. | 180 | 7,088 | ||||||
Sears Holdings Corp.* | 181 | 7,035 | ||||||
Nordstrom, Inc. | 510 | 6,788 | ||||||
Abercrombie & Fitch Co. — Class A | 280 | 6,460 | ||||||
Scripps Networks Interactive, Inc. | 290 | 6,380 | ||||||
General Motors Corp. | 1,960 | 6,272 | ||||||
D.R. Horton, Inc. | 879 | 6,215 | ||||||
Interpublic Group of | ||||||||
Companies, Inc.* | 1,534 | 6,075 | ||||||
Gannett Co., Inc. | 730 | 5,840 | ||||||
Eastman Kodak Co. | 860 | 5,659 | ||||||
Expedia, Inc.* | 669 | 5,513 | ||||||
RadioShack Corp. | 400 | 4,776 | ||||||
Goodyear Tire & Rubber Co.* | 765 | 4,567 | ||||||
Centex Corp. | 397 | 4,224 | ||||||
Lennar Corp. — Class A | 450 | 3,902 | ||||||
Big Lots, Inc.* | 260 | 3,767 | ||||||
Wyndham Worldwide Corp. | 570 | 3,734 | ||||||
AutoNation, Inc.* | 350 | 3,458 | ||||||
KB HOME | 236 | 3,214 | ||||||
Harman International Industries, Inc. | 186 | 3,112 | ||||||
New York Times Co. — Class A | 370 | 2,712 | ||||||
Office Depot, Inc.* | 880 | 2,622 | ||||||
Meredith Corp. | 120 | 2,054 | ||||||
Jones Apparel Group, Inc. | 270 | 1,582 | ||||||
Total Consumer Discretionary | 2,109,762 | |||||||
UTILITIES 3.0% | ||||||||
Exelon Corp. | 2,109 | 117,282 | ||||||
Southern Co. | 2,479 | 91,723 | ||||||
Dominion Resources, Inc. | 1,855 | 66,483 | ||||||
FPL Group, Inc. | 1,310 | 65,932 | ||||||
Duke Energy Corp. | 4,044 | 60,701 | ||||||
Entergy Corp. | 609 | 50,626 | ||||||
FirstEnergy Corp. | 980 | 47,608 | ||||||
Public Service Enterprise | ||||||||
Group, Inc. | 1,620 | 47,255 | ||||||
PG&E Corp. | 1,155 | 44,710 |
MARKET | ||||||||
SHARES | VALUE | |||||||
American Electric Power | ||||||||
Company, Inc. | 1,289 | $ | 42,898 | |||||
PPL Corp. | 1,199 | 36,797 | ||||||
Consolidated Edison, Inc. | 880 | 34,258 | ||||||
Progress Energy, Inc. | 839 | 33,434 | ||||||
Edison International | 1,040 | 33,405 | ||||||
Sempra Energy | 780 | 33,251 | ||||||
Xcel Energy, Inc. | 1,439 | 26,694 | ||||||
Ameren Corp. | 680 | 22,617 | ||||||
DTE Energy Co. | 520 | 18,548 | ||||||
Questar Corp. | 560 | 18,306 | ||||||
Allegheny Energy, Inc. | 539 | 18,251 | ||||||
AES Corp.* | 2,150 | 17,716 | ||||||
Wisconsin Energy Corp. | 370 | 15,533 | ||||||
Constellation Energy | ||||||||
Group, Inc. | 570 | 14,301 | ||||||
Equitable Resources, Inc. | 420 | 14,091 | ||||||
CenterPoint Energy, Inc. | 1,095 | 13,819 | ||||||
SCANA Corp. | 380 | 13,528 | ||||||
Pepco Holdings, Inc. | 690 | 12,254 | ||||||
Integrys Energy Group, Inc. | 240 | 10,315 | ||||||
Pinnacle West Capital Corp. | 320 | 10,282 | ||||||
NiSource, Inc. | 879 | 9,643 | ||||||
TECO Energy, Inc. | 679 | 8,386 | ||||||
CMS Energy Corp. | 720 | 7,279 | ||||||
Nicor, Inc. | 140 | 4,864 | ||||||
Dynegy Inc.* | 1,615 | 3,230 | ||||||
Total Utilities | 1,066,020 | |||||||
TELECOMMUNICATION SERVICES 2.8% | ||||||||
AT&T, Inc. | 18,860 | 537,510 | ||||||
Verizon Communications, Inc. | 9,099 | 308,456 | ||||||
American Tower Corp. — Class A* | 1,272 | 37,295 | ||||||
Qwest Communications | ||||||||
International, Inc. | 4,690 | 17,071 | ||||||
Sprint Nextel Corp.* | 9,143 | 16,732 | ||||||
Embarq Corp. | 460 | 16,542 | ||||||
Windstream Corp. | 1,405 | 12,926 | ||||||
CenturyTel, Inc. | 320 | 8,746 | ||||||
Frontier Communications Corp. | 1,000 | 8,740 | ||||||
Total Telecommunication Services | 964,018 | |||||||
MATERIALS 2.1% | ||||||||
Monsanto Co. | 1,749 | 123,042 | ||||||
E.I. du Pont de Nemours and Co. | 2,889 | 73,092 | ||||||
Newmont Mining Corp. | 1,450 | 59,015 | ||||||
Praxair, Inc. | 990 | 58,767 | ||||||
Nucor Corp. | 1,010 | 46,662 | ||||||
Dow Chemical Co. | 2,959 | 44,651 | ||||||
Air Products & Chemicals, Inc. | 670 | 33,681 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 1,210 | 29,572 | ||||||
Alcoa, Inc. | 2,560 | 28,826 | ||||||
Rohm & Haas Co. | 400 | 24,716 |
34 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
NOVA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Vulcan Materials Co. | 350 | $ | 24,353 | |||||
PPG Industries, Inc. | 530 | 22,488 | ||||||
Weyerhaeuser Co. | 680 | 20,815 | ||||||
Ecolab, Inc. | 540 | 18,981 | ||||||
Sigma-Aldrich Corp. | 400 | 16,896 | ||||||
International Paper Co. | 1,369 | 16,154 | ||||||
Owens-Illinois, Inc.* | 530 | 14,485 | ||||||
United States Steel Corp. | 370 | 13,764 | ||||||
Ball Corp. | 300 | 12,477 | ||||||
Pactiv Corp.* | 415 | 10,325 | ||||||
CF Industries Holdings, Inc. | 175 | 8,603 | ||||||
Allegheny Technologies, Inc. | 310 | 7,914 | ||||||
Sealed Air Corp. | 510 | 7,619 | ||||||
Bemis Co. | 318 | 7,530 | ||||||
International Flavors & | ||||||||
Fragrances, Inc. | 250 | 7,430 | ||||||
Eastman Chemical Co. | 230 | 7,293 | ||||||
MeadWestvaco Corp. | 550 | 6,155 | ||||||
AK Steel Holding Corp. | 357 | 3,327 | ||||||
Titanium Metals Corp. | 270 | 2,379 | ||||||
Total Materials | 751,012 | |||||||
Total Common Stocks (Cost $27,007,608) | 25,189,604 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 29.8% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 2,680,020 | 2,680,020 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 2,680,020 | 2,680,020 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 2,680,020 | 2,680,020 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 2,418,916 | 2,418,916 | ||||||
Total Repurchase Agreements (Cost $10,458,976) | 10,458,976 | |||||||
Total Investments 101.6% (Cost $37,466,584) | $ | 35,648,580 | ||||||
Liabilities in Excess of | ||||||||
Other Assets — (1.6)% | $ | (561,697 | ) | |||||
Net Assets — 100.0% | $ | 35,086,883 |
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $20,666,475) | 459 | $ | 442,503 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
Goldman Sachs International January 2009 S&P500 Index Swap, Terminating 01/08/09** (Notional Market Value $6,551,259) | 7,253 | $ | 235,937 | |||||
* | Non-Income Producing Security. | |
** | Total Return based on S&P 500 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
REIT — Real Estate Investment Trust |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 35 |
SCHEDULE OF INVESTMENTS
December 31, 2008
INVERSE S&P 500 STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 41.9% | ||||||||
Federal Home Loan Bank* 0.20% due 01/06/09 | $ | 5,000,000 | $ | 4,999,892 | ||||
Federal Farm Credit Bank* 0.25% due 01/02/09 | 2,000,000 | 2,000,000 | ||||||
Freddie Mac†† 0.05% due 01/29/09 | 2,000,000 | 1,999,925 | ||||||
Farmer Mac* 0.07% due 01/07/09 | 1,000,000 | 999,990 | ||||||
Total Federal Agency Discount Notes (Cost $9,999,807) | 9,999,807 | |||||||
REPURCHASE AGREEMENTS† 35.0% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 2,144,450 | 2,144,450 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 2,144,450 | 2,144,450 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 2,144,450 | 2,144,450 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,935,523 | 1,935,523 | ||||||
Total Repurchase Agreements (Cost $8,368,873) | 8,368,873 | |||||||
Total Investments 76.9% (Cost $18,368,680) | $ | 18,368,680 | ||||||
Other Assets in Excess of Liabilities – 23.1% | $ | 5,508,815 | ||||||
Net Assets – 100.0% | $ | 23,877,495 | ||||||
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 S&P500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $11,391,325) | 253 | $ | (69,133 | ) | ||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
SOLD SHORT | ||||||||
Goldman Sachs International January 2009 S&P500 Index Swap, Terminating 01/08/09** (Notional Market Value $12,210,187) | 13,518 | $ | 54,078 | |||||
* | 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. | |
† | Repurchase Agreements — See Note 5. | |
†† | On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. |
36 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
NASDAQ - 100® FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 86.2% | ||||||||
INFORMATION TECHNOLOGY 50.8% | ||||||||
Apple, Inc.* | 32,770 | $ | 2,796,919 | |||||
Qualcomm, Inc. | 52,770 | 1,890,749 | ||||||
Microsoft Corp. | 80,920 | 1,573,085 | ||||||
Google, Inc. — Class A* | 3,850 | 1,184,452 | ||||||
Oracle Corp.* | 56,810 | 1,007,241 | ||||||
Cisco Systems, Inc.* | 55,290 | 901,227 | ||||||
Intel Corp. | 51,480 | 754,697 | ||||||
Research In Motion Ltd.* | 14,950 | 606,671 | ||||||
Automatic Data Processing, Inc. | 9,490 | 373,337 | ||||||
eBay, Inc.* | 25,170 | 351,373 | ||||||
Symantec Corp.* | 23,110 | 312,447 | ||||||
Adobe Systems, Inc.* | 13,750 | 292,738 | ||||||
Activision Blizzard Inc.* | 31,260 | 270,086 | ||||||
Intuit, Inc.* | 10,660 | 253,601 | ||||||
CA, Inc. | 13,160 | 243,855 | ||||||
Paychex, Inc. | 9,050 | 237,834 | ||||||
Yahoo!, Inc.* | 17,630 | 215,086 | ||||||
Dell, Inc.* | 18,910 | 193,638 | ||||||
Fiserv, Inc.* | 5,290 | 192,397 | ||||||
Applied Materials, Inc. | 18,340 | 185,784 | ||||||
Altera Corp. | 11,050 | 184,646 | ||||||
Broadcom Corp. — Class A* | 10,770 | 182,767 | ||||||
Linear Technology Corp. | 7,830 | 173,200 | ||||||
Xilinx, Inc. | 9,600 | 171,072 | ||||||
Juniper Networks, Inc.* | 9,170 | 160,567 | ||||||
Electronic Arts, Inc.* | 8,550 | 137,142 | ||||||
Cognizant Technology Solutions Corp. — Class A* | 7,500 | 135,450 | ||||||
Citrix Systems, Inc.* | 5,700 | 134,349 | ||||||
NetApp, Inc.* | 9,120 | 127,406 | ||||||
Autodesk, Inc.* | 6,230 | 122,420 | ||||||
KLA-Tencor Corp. | 5,410 | 117,884 | ||||||
Flir Systems, Inc.* | 3,840 | 117,811 | ||||||
Nvidia Corp.* | 13,940 | 112,496 | ||||||
Check Point Software Technologies Ltd.* | 5,590 | 106,154 | ||||||
Marvell Technology Group Ltd.* | 15,410 | 102,785 | ||||||
Maxim Integrated Products, Inc. | 8,220 | 93,872 | ||||||
VeriSign, Inc.* | 4,840 | 92,347 | ||||||
Baidu.com — SP ADR* | 700 | 91,399 | ||||||
Microchip Technology, Inc. | 4,000 | 78,120 | ||||||
Infosys Technologies Ltd. — SP ADR | 2,970 | 72,973 | ||||||
Lam Research Corp.* | 3,410 | 72,565 | ||||||
Logitech International SA* | 4,610 | 71,824 | ||||||
Akamai Technologies, Inc.* | 4,280 | 64,585 | ||||||
IAC/InterActiveCorp* | 3,850 | 60,561 | ||||||
Flextronics International Ltd.* | 23,210 | 59,418 | ||||||
Seagate Technology | 12,870 | 57,014 | ||||||
Sun Microsystems, Inc.* | 8,490 | 32,432 | ||||||
Total Information Technology | 16,770,476 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
HEALTH CARE 17.5% | ||||||||
Gilead Sciences, Inc.* | 23,700 | $ | 1,212,018 | |||||
Amgen, Inc.* | 13,050 | 753,638 | ||||||
Teva Pharmaceutical | ||||||||
Industries Ltd. — SP ADR | 16,870 | 718,156 | ||||||
Celgene Corp.* | 12,010 | 663,913 | ||||||
Genzyme Corp.* | 8,960 | 594,675 | ||||||
Biogen Idec, Inc.* | 8,380 | 399,139 | ||||||
Express Scripts, Inc.* | 5,840 | 321,083 | ||||||
Cephalon, Inc.* | 1,760 | 135,590 | ||||||
Intuitive Surgical, Inc.* | 1,030 | 130,800 | ||||||
Vertex Pharmaceuticals, Inc.* | 4,160 | 126,381 | ||||||
Life Technologies Corp.* | 4,640 | 108,158 | ||||||
DENTSPLY International, Inc. | 3,780 | 106,747 | ||||||
Warner Chilcott Ltd.* | 6,600 | 95,700 | ||||||
Hologic, Inc.* | 7,120 | 93,058 | ||||||
Pharmaceutical Product | ||||||||
Development, Inc. | 3,030 | 87,900 | ||||||
Henry Schein, Inc.* | 2,350 | 86,222 | ||||||
Illumina, Inc.* | 3,210 | 83,621 | ||||||
Patterson Companies, Inc.* | 3,080 | 57,750 | ||||||
Total Health Care | 5,774,549 | |||||||
CONSUMER DISCRETIONARY 10.4% | ||||||||
Comcast Corp. — Class A | 38,130 | 643,635 | ||||||
DIRECTV Group, Inc.* | 20,210 | 463,011 | ||||||
Amazon.com, Inc.* | 7,530 | 386,138 | ||||||
Apollo Group, Inc. — Class A* | 4,250 | 325,635 | ||||||
Starbucks Corp.* | 26,950 | 254,947 | ||||||
Bed Bath & Beyond, Inc.* | 9,230 | 234,627 | ||||||
Staples, Inc. | 12,670 | 227,046 | ||||||
Wynn Resorts Ltd.* | 3,230 | 136,500 | ||||||
Sears Holdings Corp.* | 3,420 | 132,935 | ||||||
O’Reilly Automotive, Inc.* | 3,540 | 108,820 | ||||||
Ross Stores, Inc. | 3,520 | 104,650 | ||||||
Garmin Ltd. | 4,970 | 95,275 | ||||||
Urban Outfitters, Inc.* | 4,390 | 65,762 | ||||||
Liberty Global, Inc. — Class A* | 4,020 | 63,998 | ||||||
DISH Network Corp. — Class A* | 5,690 | 63,102 | ||||||
Expedia, Inc.* | 7,460 | 61,470 | ||||||
Liberty Media Corp - Interactive* | 14,380 | 44,866 | ||||||
Focus Media Holding — SP ADR* | 3,020 | 27,452 | ||||||
Total Consumer Discretionary | 3,439,869 | |||||||
INDUSTRIALS 5.1% | ||||||||
Paccar, Inc. | 10,740 | 307,164 | ||||||
First Solar, Inc.* | 1,880 | 259,365 | ||||||
CH Robinson Worldwide, Inc. | 4,420 | 243,233 | ||||||
Expeditors International of Washington, Inc. | 5,500 | 182,985 | ||||||
Fastenal Co. | 3,750 | 130,687 | ||||||
Stericycle, Inc.* | 2,380 | 123,950 | ||||||
Cintas Corp. | 4,850 | 112,665 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 37 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
NASDAQ - 100® FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Ryanair Holdings PLC — SP ADR* | 3,070 | $ | 89,276 | |||||
J.B. Hunt Transport Services, Inc. | 3,330 | 87,479 | ||||||
Foster Wheeler Ltd.* | 3,480 | 81,362 | ||||||
Joy Global, Inc. | 2,650 | 60,659 | ||||||
Total Industrials | 1,678,825 | |||||||
CONSUMER STAPLES 1.2% | ||||||||
Costco Wholesale Corp. | 6,010 | 315,525 | ||||||
Hansen Natural Corp.* | 2,420 | 81,143 | ||||||
Total Consumer Staples | 396,668 | |||||||
TELECOMMUNICATION SERVICES 0.6% | ||||||||
Millicom International | ||||||||
Cellular SA | 2,770 | 124,400 | ||||||
NII Holdings, Inc. — Class B* | 4,260 | 77,447 | ||||||
Total Telecommunication Services | 201,847 | |||||||
MATERIALS 0.6% | ||||||||
Sigma-Aldrich Corp. | 3,180 | 134,323 | ||||||
Steel Dynamics, Inc. | 4,950 | 55,341 | ||||||
Total Materials | 189,664 | |||||||
Total Common Stocks (Cost $22,856,861) | 28,451,898 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 10.4% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 875,912 | 875,912 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 875,912 | 875,912 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 875,912 | 875,912 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 790,577 | 790,577 | ||||||
Total Repurchase Agreements (Cost $3,418,313) | 3,418,313 | |||||||
Total Investments 96.6% (Cost $26,275,174) | $ | 31,870,211 | ||||||
Other Assets in Excess of Liabilities – 3.4% | $ | 1,116,119 | ||||||
Net Assets – 100.0% | $ | 32,986,330 |
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $798,765) | 33 | $ | 25,215 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
Goldman Sachs International January 2009 NASDAQ-100 Index Swap, Terminating 01/08/09** (Notional Market Value $3,802,224) | 3,138 | $ | 13,995 | |||||
* | Non-Income Producing Security. | |
** | Total Return based on NASDAQ-100 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
ADR — American Depository Receipt. |
38 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
INVERSE NASDAQ - 100® STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 8.2% | ||||||||
Federal Home Loan Bank* 0.20% due 01/08/09 | $ | 1,000,000 | $ | 999,967 | ||||
Total Federal Agency Discount Notes (Cost $999,967) | 999,967 | |||||||
REPURCHASE AGREEMENTS† 96.8% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 3,006,580 | 3,006,580 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 3,006,580 | 3,006,580 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 3,006,580 | 3,006,580 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 2,713,660 | 2,713,660 | ||||||
Total Repurchase Agreements (Cost $11,733,400) | 11,733,400 | |||||||
Total Investments 105.0% (Cost $12,733,367) | $ | 12,733,367 | ||||||
Liabilities in Excess of Other Assets – (5.0)% | $ | (606,001 | ) | |||||
Net Assets – 100.0% | $ | 12,127,366 |
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $10,771,225) | 445 | $ | 60,386 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT SOLD SHORT | ||||||||
Goldman Sachs International January 2009 NASDAQ-100 Index Swap, Terminating 01/08/09** (Notional Market Value $1,305,421) | 1,077 | $ | 15,823 | |||||
* | 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 NASDAQ-100 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 39 |
SCHEDULE OF INVESTMENTS
December 31, 2008
S&P 500 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 61.2% | ||||||||
INFORMATION TECHNOLOGY 9.4% | ||||||||
Microsoft Corp. | 15,760 | $ | 306,374 | |||||
International Business | ||||||||
Machines Corp. | 2,770 | 233,123 | ||||||
Cisco Systems, Inc.* | 12,060 | 196,578 | ||||||
Hewlett-Packard Co. | 5,046 | 183,119 | ||||||
Intel Corp. | 11,460 | 168,004 | ||||||
Apple, Inc.* | 1,829 | 156,105 | ||||||
Google, Inc. — Class A* | 490 | 150,748 | ||||||
Oracle Corp.* | 8,069 | 143,063 | ||||||
Qualcomm, Inc. | 3,407 | 122,073 | ||||||
EMC Corp* | 4,200 | 43,974 | ||||||
Texas Instruments, Inc. | 2,670 | 41,438 | ||||||
Automatic Data Processing, Inc. | 1,045 | 41,110 | ||||||
Dell, Inc.* | 3,570 | 36,557 | ||||||
Yahoo!, Inc.* | 2,859 | 34,880 | ||||||
eBay, Inc.* | 2,210 | 30,852 | ||||||
Corning, Inc. | 3,200 | 30,496 | ||||||
Applied Materials, Inc. | 2,757 | 27,928 | ||||||
Symantec Corp.* | 1,717 | 23,214 | ||||||
Adobe Systems, Inc.* | 1,087 | 23,142 | ||||||
Western Union Co. | 1,470 | 21,080 | ||||||
MasterCard, Inc. | 146 | 20,868 | ||||||
Motorola, Inc. | 4,667 | 20,675 | ||||||
Juniper Networks, Inc.* | 1,090 | 19,086 | ||||||
Paychex, Inc. | 656 | 17,240 | ||||||
Broadcom Corp. — Class A* | 924 | 15,680 | ||||||
Intuit, Inc.* | 658 | 15,654 | ||||||
Tyco Electronics Ltd. | 940 | 15,237 | ||||||
CA, Inc. | 810 | 15,009 | ||||||
Xerox Corp. | 1,780 | 14,187 | ||||||
Fiserv, Inc.* | 327 | 11,893 | ||||||
Analog Devices, Inc. | 600 | 11,412 | ||||||
Agilent Technologies, Inc.* | 720 | 11,254 | ||||||
Computer Sciences Corp.* | 313 | 10,999 | ||||||
Cognizant Technology | ||||||||
Solutions Corp. — Class A* | 599 | 10,818 | ||||||
McAfee, Inc.* | 310 | 10,717 | ||||||
Harris Corp. | 279 | 10,616 | ||||||
Electronic Arts, Inc.* | 660 | 10,586 | ||||||
BMC Software, Inc.* | 387 | 10,414 | ||||||
Altera Corp. | 610 | 10,193 | ||||||
Linear Technology Corp. | 460 | 10,175 | ||||||
Xilinx, Inc. | 560 | 9,979 | ||||||
NetApp, Inc.* | 680 | 9,500 | ||||||
Autodesk, Inc.* | 470 | 9,235 | ||||||
Affiliated Computer Services, | ||||||||
Inc. — Class A* | 200 | 9,190 | ||||||
Nvidia Corp.* | 1,110 | 8,958 | ||||||
Citrix Systems, Inc.* | 370 | 8,721 | ||||||
Amphenol Corp. | 360 | 8,633 | ||||||
Flir Systems, Inc.* | 280 | 8,590 |
MARKET | ||||||||
SHARES | VALUE | |||||||
KLA-Tencor Corp. | 350 | $ | 7,627 | |||||
VeriSign, Inc.* | 396 | 7,556 | ||||||
Microchip Technology, Inc. | 370 | 7,226 | ||||||
Salesforce.com, Inc.* | 220 | 7,042 | ||||||
MEMC Electronic Materials, Inc.* | 460 | 6,569 | ||||||
Fidelity National Information Services, Inc. | 386 | 6,280 | ||||||
Sun Microsystems, Inc.* | 1,520 | 5,806 | ||||||
Total System Services, Inc. | 412 | 5,768 | ||||||
Teradata Corp.* | 360 | 5,339 | ||||||
Akamai Technologies, Inc.* | 350 | 5,282 | ||||||
SanDisk Corp.* | 470 | 4,512 | ||||||
LSI Logic Corp.* | 1,325 | 4,359 | ||||||
Lexmark International, Inc.* | 160 | 4,304 | ||||||
Molex, Inc. | 290 | 4,202 | ||||||
Micron Technology, Inc.* | 1,571 | 4,147 | ||||||
National Semiconductor Corp. | 400 | 4,028 | ||||||
QLogic Corp.* | 260 | 3,494 | ||||||
Compuware Corp.* | 510 | 3,443 | ||||||
Tellabs, Inc.* | 816 | 3,362 | ||||||
Jabil Circuit, Inc. | 428 | 2,889 | ||||||
Novell, Inc.* | 713 | 2,774 | ||||||
Advanced Micro Devices, Inc.* | 1,250 | 2,700 | ||||||
Novellus Systems, Inc.* | 200 | 2,468 | ||||||
JDS Uniphase Corp.* | 450 | 1,643 | ||||||
Convergys Corp.* | 246 | 1,577 | ||||||
Teradyne, Inc.* | 350 | 1,477 | ||||||
Ciena Corp.* | 186 | 1,246 | ||||||
Total Information Technology | 2,476,497 | |||||||
HEALTH CARE 9.0% | ||||||||
Johnson & Johnson, Inc. | 5,718 | 342,108 | ||||||
Pfizer, Inc. | 13,892 | 246,027 | ||||||
Abbott Laboratories | 3,204 | 170,998 | ||||||
Merck & Company, Inc. | 4,360 | 132,544 | ||||||
Amgen, Inc.* | 2,177 | 125,722 | ||||||
Wyeth | 2,742 | 102,852 | ||||||
Gilead Sciences, Inc.* | 1,895 | 96,910 | ||||||
Bristol-Myers Squibb Co. | 4,083 | 94,930 | ||||||
Eli Lilly & Co. | 2,059 | 82,916 | ||||||
Medtronic, Inc. | 2,298 | 72,203 | ||||||
Baxter International, Inc. | 1,280 | 68,595 | ||||||
UnitedHealth Group, Inc. | 2,489 | 66,207 | ||||||
Schering-Plough Corp. | 3,353 | 57,102 | ||||||
Celgene Corp.* | 939 | 51,908 | ||||||
WellPoint, Inc.* | 1,045 | 44,026 | ||||||
Medco Health Solutions, Inc.* | 1,030 | 43,167 | ||||||
Covidien Ltd. | 1,042 | 37,762 | ||||||
Genzyme Corp.* | 563 | 37,366 | ||||||
Becton, Dickinson & Co. | 499 | 34,127 | ||||||
Thermo Fisher Scientific, Inc.* | 870 | 29,641 | ||||||
Biogen Idec, Inc.* | 596 | 28,388 | ||||||
Express Scripts, Inc.* | 506 | 27,820 | ||||||
Aetna, Inc. | 950 | 27,075 |
40 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
S&P 500 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Cardinal Health, Inc. | 741 | $ | 25,542 | |||||
Allergan, Inc. | 633 | 25,523 | ||||||
Boston Scientific Corp.* | 3,087 | 23,893 | ||||||
St. Jude Medical, Inc.* | 710 | 23,402 | ||||||
McKesson Corp. | 565 | 21,882 | ||||||
Stryker Corp. | 500 | 19,975 | ||||||
Zimmer Holdings, Inc.* | 460 | 18,593 | ||||||
Quest Diagnostics, Inc. | 328 | 17,027 | ||||||
C.R. Bard, Inc. | 200 | 16,852 | ||||||
Forest Laboratories, Inc.* | 620 | 15,791 | ||||||
Laboratory Corporation of America Holdings* | 220 | 14,170 | ||||||
Humana, Inc.* | 350 | 13,048 | ||||||
AmerisourceBergen Corp. | 320 | 11,411 | ||||||
Cephalon, Inc.* | 140 | 10,786 | ||||||
DaVita, Inc.* | 210 | 10,410 | ||||||
CIGNA Corp. | 569 | 9,588 | ||||||
Intuitive Surgical, Inc.* | 75 | 9,524 | ||||||
Varian Medical Systems, Inc.* | 260 | 9,110 | ||||||
Hospira, Inc.* | 328 | 8,797 | ||||||
DENTSPLY International, Inc. | 310 | 8,754 | ||||||
Life Technologies Corp.* | 360 | 8,392 | ||||||
Waters Corp.* | 198 | 7,257 | ||||||
Mylan Laboratories, Inc.* | 630 | 6,231 | ||||||
Watson Pharmaceuticals, Inc.* | 220 | 5,845 | ||||||
IMS Health, Inc. | 367 | 5,564 | ||||||
Millipore Corp.* | 106 | 5,461 | ||||||
King Pharmaceuticals, Inc.* | 510 | 5,416 | ||||||
Coventry Health Care, Inc.* | 308 | 4,583 | ||||||
Patterson Companies, Inc.* | 187 | 3,506 | ||||||
PerkinElmer, Inc. | 240 | 3,338 | ||||||
Tenet Healthcare Corp.* | 859 | 988 | ||||||
Total Health Care | 2,391,053 | |||||||
ENERGY 8.1% | ||||||||
Exxon Mobil Corp. | 10,480 | 836,618 | ||||||
Chevron Corp. | 4,190 | 309,934 | ||||||
ConocoPhillips | 3,070 | 159,026 | ||||||
Schlumberger Ltd. | 2,463 | 104,259 | ||||||
Occidental Petroleum Corp. | 1,670 | 100,183 | ||||||
Devon Energy Corp. | 913 | 59,993 | ||||||
Apache Corp. | 690 | 51,426 | ||||||
XTO Energy, Inc. | 1,186 | 41,830 | ||||||
Marathon Oil Corp. | 1,453 | 39,754 | ||||||
Anadarko Petroleum Corp. | 950 | 36,623 | ||||||
EOG Resources, Inc. | 514 | 34,222 | ||||||
Halliburton Co. | 1,842 | 33,488 | ||||||
Hess Corp. | 580 | 31,111 | ||||||
Valero Energy Corp. | 1,060 | 22,938 | ||||||
National-Oilwell Varco, Inc.* | 863 | 21,092 | ||||||
Southwestern Energy Co.* | 710 | 20,569 | ||||||
Baker Hughes, Inc. | 630 | 20,204 | ||||||
Spectra Energy Corp. | 1,260 | 19,832 | ||||||
Chesapeake Energy Corp. | 1,113 | 17,997 | ||||||
Noble Energy, Inc. | 356 | 17,522 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Williams Companies, Inc. | 1,191 | $ | 17,246 | |||||
Murphy Oil Corp. | 385 | 17,075 | ||||||
Weatherford International Ltd.* | 1,397 | 15,116 | ||||||
Peabody Energy Corp. | 550 | 12,513 | ||||||
Noble Corp. | 540 | 11,929 | ||||||
El Paso Corp. | 1,440 | 11,275 | ||||||
Range Resources Corp. | 320 | 11,005 | ||||||
Consol Energy, Inc. | 370 | 10,575 | ||||||
Sunoco, Inc. | 240 | 10,430 | ||||||
Smith International, Inc. | 446 | 10,209 | ||||||
Cameron International Corp.* | 449 | 9,205 | ||||||
ENSCO International, Inc. | 290 | 8,233 | ||||||
Nabors Industries Ltd.* | 585 | 7,002 | ||||||
BJ Services Co. | 600 | 7,002 | ||||||
Cabot Oil & Gas Corp. | 210 | 5,460 | ||||||
Pioneer Natural Resources Co. | 240 | 3,883 | ||||||
Tesoro Corp. | 290 | 3,819 | ||||||
Rowan Companies, Inc. | 229 | 3,641 | ||||||
Massey Energy Co. | 180 | 2,482 | ||||||
Total Energy | 2,156,721 | |||||||
FINANCIALS 8.1% | ||||||||
Wells Fargo & Co. | 8,630 | 254,412 | ||||||
JPMorgan Chase & Co. | 7,691 | 242,497 | ||||||
Bank of America Corp. | 13,070 | 184,026 | ||||||
U.S. Bancorp | 3,618 | 90,486 | ||||||
Goldman Sachs Group, Inc. | 907 | 76,542 | ||||||
Citigroup, Inc. | 11,226 | 75,326 | ||||||
Bank of New York Mellon Corp. | 2,359 | 66,830 | ||||||
MetLife, Inc. | 1,637 | 57,066 | ||||||
Travelers Companies, Inc. | 1,196 | 54,059 | ||||||
American Express Co. | 2,394 | 44,409 | ||||||
AFLAC, Inc. | 960 | 44,006 | ||||||
PNC Financial Services Group, Inc. | 870 | 42,630 | ||||||
Chubb Corp. | 730 | 37,230 | ||||||
Allstate Corp. | 1,100 | 36,036 | ||||||
Morgan Stanley | 2,190 | 35,128 | ||||||
State Street Corp. | 887 | 34,886 | ||||||
BB&T Corp. | 1,142 | 31,359 | ||||||
Charles Schwab Corp. | 1,925 | 31,127 | ||||||
CME Group, Inc. | 140 | 29,135 | ||||||
Prudential Financial, Inc. | 866 | 26,205 | ||||||
Capital One Financial Corp. | 811 | 25,863 | ||||||
Marsh & McLennan Companies, Inc. | 1,062 | 25,775 | ||||||
Aon Corp. | 560 | 25,581 | ||||||
Simon Property Group, Inc. | 466 | 24,759 | ||||||
Northern Trust Corp. | 456 | 23,776 | ||||||
SunTrust Banks, Inc. | 730 | 21,564 | ||||||
Loews Corp. | 750 | 21,187 | ||||||
Progressive Corp. | 1,393 | 20,630 | ||||||
Public Storage | 258 | 20,511 | ||||||
Franklin Resources, Inc. | 310 | 19,772 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 41 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
S&P 500 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
T. Rowe Price Group, Inc. | 530 | $ | 18,783 | |||||
Hudson City Bancorp, Inc. | 1,073 | 17,125 | ||||||
Vornado Realty Trust | 278 | 16,777 | ||||||
Equity Residential | 559 | 16,669 | ||||||
NYSE Euronext | 550 | 15,059 | ||||||
HCP, Inc. | 520 | 14,440 | ||||||
Boston Properties, Inc. | 247 | 13,585 | ||||||
People’s United Financial, Inc. | 720 | 12,838 | ||||||
Unum Group | 680 | 12,648 | ||||||
IntercontinentalExchange, Inc.* | 150 | 12,366 | ||||||
Principal Financial Group, Inc. | 530 | 11,962 | ||||||
Plum Creek Timber Company, Inc. (REIT) | 336 | 11,673 | ||||||
Invesco Ltd. | 788 | 11,379 | ||||||
Regions Financial Corp. | 1,428 | 11,367 | ||||||
Ameriprise Financial, Inc. | 452 | 10,559 | ||||||
Hartford Financial Services Group, Inc. | 622 | 10,213 | ||||||
Lincoln National Corp. | 530 | 9,985 | ||||||
Fifth Third Bancorp | 1,187 | 9,805 | ||||||
AvalonBay Communities, Inc. | 160 | 9,693 | ||||||
Cincinnati Financial Corp. | 326 | 9,477 | ||||||
Discover Financial Services | 993 | 9,463 | ||||||
M&T Bank Corp. | 160 | 9,186 | ||||||
American International Group, Inc. | 5,538 | 8,695 | ||||||
KeyCorp | 1,015 | 8,648 | ||||||
KIMCO Realty Corp. | 471 | 8,610 | ||||||
SLM Corp.* | 961 | 8,553 | ||||||
Host Hotels & Resorts, Inc. | 1,080 | 8,176 | ||||||
Torchmark Corp. | 180 | 8,046 | ||||||
Moody’s Corp. | 397 | 7,976 | ||||||
ProLogis | 553 | 7,681 | ||||||
Marshall & Ilsley Corp. | 538 | 7,338 | ||||||
Assurant, Inc. | 240 | 7,200 | ||||||
Leucadia National Corp.* | 360 | 7,128 | ||||||
Nasdaq Stock Market, Inc.* | 278 | 6,869 | ||||||
Legg Mason, Inc. | 290 | 6,354 | ||||||
Comerica, Inc. | 310 | 6,153 | ||||||
Zions Bancorporation | 240 | 5,882 | ||||||
Huntington Bancshares, Inc. | 753 | 5,768 | ||||||
First Horizon National Corp. | 421 | 4,448 | ||||||
CIT Group, Inc. | 740 | 3,360 | ||||||
Sovereign Bancorp, Inc.* | 1,118 | 3,332 | ||||||
Federated Investors, Inc. — Class B | 180 | 3,053 | ||||||
Janus Capital Group, Inc. | 330 | 2,650 | ||||||
Genworth Financial, Inc. — Class A | 890 | 2,519 | ||||||
XL Capital Ltd. | 680 | 2,516 | ||||||
Apartment Investment & Management Co. — Class A | 210 | 2,425 | ||||||
CB Richard Ellis Group, Inc. — Class A* | 460 | 1,987 |
MARKET | ||||||||
SHARES | VALUE | |||||||
MBIA, Inc.* | 390 | $ | 1,587 | |||||
American Capital Ltd. | 429 | 1,390 | ||||||
E*Trade Financial Corp.* | 1,157 | 1,331 | ||||||
Developers Diversified Realty Corp. | 246 | 1,200 | ||||||
Total Financials | 2,148,740 | |||||||
CONSUMER STAPLES 7.9% | ||||||||
Procter & Gamble Co. | 6,150 | 380,193 | ||||||
Wal-Mart Stores, Inc. | 4,606 | 258,212 | ||||||
Coca-Cola Co. | 4,102 | 185,698 | ||||||
Philip Morris International, Inc. | 4,170 | 181,437 | ||||||
PepsiCo, Inc. | 3,200 | 175,264 | ||||||
CVS Caremark Corp. | 2,960 | 85,070 | ||||||
Kraft Foods, Inc. | 3,030 | 81,355 | ||||||
Colgate-Palmolive Co. | 1,040 | 71,282 | ||||||
Altria Group, Inc. | 4,251 | 64,020 | ||||||
Walgreen Co. | 2,038 | 50,277 | ||||||
Costco Wholesale Corp. | 890 | 46,725 | ||||||
Kimberly-Clark Corp. | 850 | 44,829 | ||||||
General Mills, Inc. | 690 | 41,918 | ||||||
Archer-Daniels-Midland Co. | 1,320 | 38,056 | ||||||
Kroger Co. | 1,340 | 35,389 | ||||||
Sysco Corp. | 1,230 | 28,216 | ||||||
H.J. Heinz Co. | 654 | 24,590 | ||||||
Kellogg Co. | 520 | 22,802 | ||||||
UST, Inc. | 308 | 21,369 | ||||||
Avon Products, Inc. | 877 | 21,074 | ||||||
Safeway, Inc. | 879 | 20,894 | ||||||
Lorillard, Inc. | 350 | 19,723 | ||||||
Clorox Co. | 292 | 16,224 | ||||||
ConAgra Foods, Inc. | 920 | 15,180 | ||||||
Molson Coors Brewing Co. — Class B | 308 | 15,067 | ||||||
Sara Lee Corp. | 1,458 | 14,274 | ||||||
Reynolds American, Inc. | 350 | 14,109 | ||||||
Campbell Soup Co. | 420 | 12,604 | ||||||
Hershey Co. | 339 | 11,777 | ||||||
J.M. Smucker Co. | 240 | 10,406 | ||||||
Brown-Forman Corp. — Class B | 197 | 10,144 | ||||||
McCormick & Company, Inc. | 270 | 8,602 | ||||||
Dr Pepper Snapple Group, Inc.* | 520 | 8,450 | ||||||
Coca-Cola Enterprises, Inc. | 650 | 7,820 | ||||||
Estee Lauder Companies, Inc. — Class A | 240 | 7,430 | ||||||
SUPERVALU, INC. | 440 | 6,424 | ||||||
Pepsi Bottling Group, Inc. | 277 | 6,235 | ||||||
Constellation Brands, | ||||||||
Inc. — Class A* | 395 | 6,229 | ||||||
Dean Foods Co.* | 316 | 5,679 | ||||||
Tyson Foods, Inc. — Class A | 623 | 5,457 | ||||||
Whole Foods Market, Inc. | 290 | 2,738 | ||||||
Total Consumer Staples | 2,083,242 | |||||||
42 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
S&P 500 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
INDUSTRIALS 6.9% | ||||||||
General Electric Co. | 21,637 | $ | 350,519 | |||||
United Parcel Service, | ||||||||
Inc. — Class B | 2,050 | 113,078 | ||||||
United Technologies Corp. | 1,960 | 105,056 | ||||||
3M Co. | 1,430 | 82,282 | ||||||
Boeing Co. | 1,510 | 64,432 | ||||||
Lockheed Martin Corp. | 693 | 58,267 | ||||||
Emerson Electric Co. | 1,580 | 57,844 | ||||||
Caterpillar, Inc. | 1,240 | 55,391 | ||||||
Union Pacific Corp. | 1,040 | 49,712 | ||||||
Honeywell International, Inc. | 1,500 | 49,245 | ||||||
General Dynamics Corp. | 796 | 45,842 | ||||||
Burlington Northern Santa Fe Corp. | 575 | 43,533 | ||||||
Raytheon Co. | 850 | 43,384 | ||||||
FedEx Corp. | 640 | 41,056 | ||||||
Norfolk Southern Corp. | 760 | 35,758 | ||||||
Deere & Co. | 877 | 33,607 | ||||||
Waste Management, Inc. | 1,008 | 33,405 | ||||||
Northrop Grumman Corp. | 670 | 30,177 | ||||||
Danaher Corp. | 528 | 29,890 | ||||||
Iron Mountain, Inc.* | 1,184 | 29,280 | ||||||
Illinois Tool Works, Inc. | 810 | 28,390 | ||||||
CSX Corp. | 810 | 26,301 | ||||||
Paccar, Inc. | 750 | 21,450 | ||||||
Tyco International Ltd. | 970 | 20,952 | ||||||
CH Robinson Worldwide, Inc. | 350 | 19,260 | ||||||
L-3 Communications Holdings, Inc. | 245 | 18,076 | ||||||
ITT Corporation | 369 | 16,970 | ||||||
Precision Castparts Corp. | 285 | 16,952 | ||||||
Eaton Corp. | 338 | 16,802 | ||||||
Fluor Corp. | 370 | 16,602 | ||||||
Republic Services, Inc. | 660 | 16,361 | ||||||
Expeditors International of Washington, Inc. | 440 | 14,639 | ||||||
Parker Hannifin Corp. | 330 | 14,038 | ||||||
Southwest Airlines Co. | 1,518 | 13,085 | ||||||
Rockwell Collins, Inc. | 330 | 12,900 | ||||||
Dover Corp. | 380 | 12,510 | ||||||
Jacobs Engineering Group, Inc.* | 246 | 11,833 | ||||||
Ingersoll-Rand Co. — Class A | 660 | 11,451 | ||||||
Cummins, Inc. | 410 | 10,959 | ||||||
Pitney Bowes, Inc. | 416 | 10,600 | ||||||
Cooper Industries Ltd. — Class A | 360 | 10,523 | ||||||
W.W. Grainger, Inc. | 130 | 10,249 | ||||||
Fastenal Co. | 270 | 9,410 | ||||||
Stericycle, Inc.* | 179 | 9,322 | ||||||
Rockwell Automation, Inc. | 286 | 9,221 | ||||||
Goodrich Corp. | 247 | 9,144 | ||||||
Dun & Bradstreet Corp. | 110 | 8,492 | ||||||
Masco Corp. | 739 | 8,225 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Avery Dennison Corp. | 220 | $ | 7,201 | |||||
Textron, Inc. | 500 | 6,935 | ||||||
Equifax, Inc. | 257 | 6,816 | ||||||
Pall Corp. | 236 | 6,709 | ||||||
Robert Half International, Inc. | 320 | 6,662 | ||||||
Cintas Corp. | 270 | 6,272 | ||||||
Flowserve Corp. | 119 | 6,129 | ||||||
RR Donnelley & Sons Co. | 420 | 5,704 | ||||||
Ryder System, Inc. | 110 | 4,266 | ||||||
Monster Worldwide, Inc.* | 247 | 2,986 | ||||||
Manitowoc Company, Inc. | 270 | 2,338 | ||||||
Total Industrials | 1,818,493 | |||||||
CONSUMER DISCRETIONARY 5.1% | ||||||||
McDonald’s Corp. | 2,300 | 143,037 | ||||||
Comcast Corp. — Class A | 5,930 | 100,098 | ||||||
Walt Disney Co. | 3,810 | 86,449 | ||||||
Home Depot, Inc. | 3,490 | 80,340 | ||||||
Time Warner, Inc. | 7,385 | 74,293 | ||||||
Lowe’s Companies, Inc. | 3,021 | 65,012 | ||||||
Target Corp. | 1,550 | 53,521 | ||||||
News Corp. — Class A | 4,737 | 43,059 | ||||||
Nike, Inc. — Class B | 810 | 41,310 | ||||||
Amazon.com, Inc.* | 663 | 33,999 | ||||||
Yum! Brands, Inc. | 946 | 29,799 | ||||||
Staples, Inc. | 1,468 | 26,307 | ||||||
DIRECTV Group, Inc.* | 1,130 | 25,888 | ||||||
Viacom, Inc. — Class B* | 1,260 | 24,016 | ||||||
Kohl’s Corp.* | 630 | 22,806 | ||||||
Johnson Controls, Inc. | 1,215 | 22,064 | ||||||
Carnival Corp. | 904 | 21,985 | ||||||
Best Buy Company, Inc. | 699 | 19,649 | ||||||
TJX Companies, Inc. | 860 | 17,690 | ||||||
Omnicom Group, Inc. | 640 | 17,229 | ||||||
Apollo Group, Inc. — Class A* | 216 | 16,550 | ||||||
H&R Block, Inc. | 695 | 15,790 | ||||||
McGraw-Hill Companies, Inc. | 648 | 15,027 | ||||||
Starbucks Corp.* | 1,516 | 14,341 | ||||||
Coach, Inc.* | 670 | 13,916 | ||||||
Bed Bath & Beyond, Inc.* | 539 | 13,701 | ||||||
The Gap, Inc. | 957 | 12,814 | ||||||
Fortune Brands, Inc. | 310 | 12,797 | ||||||
Genuine Parts Co. | 330 | 12,494 | ||||||
Sherwin-Williams Co. | 200 | 11,950 | ||||||
Mattel, Inc. | 738 | 11,808 | ||||||
Marriott International, Inc. — Class A | 600 | 11,670 | ||||||
CBS Corp. | 1,401 | 11,474 | ||||||
Ford Motor Co.* | 4,919 | 11,265 | ||||||
AutoZone, Inc.* | 80 | 11,158 | ||||||
VF Corp. | 180 | 9,859 | ||||||
J.C. Penney Company, Inc. | 462 | 9,101 | ||||||
Macy’s, Inc. | 870 | 9,004 | ||||||
Harley-Davidson, Inc. | 480 | 8,146 | ||||||
Darden Restaurants, Inc. | 287 | 8,088 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 43 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
S&P 500 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Family Dollar Stores, Inc. | 287 | $ | 7,482 | |||||
Hasbro, Inc. | 256 | 7,468 | ||||||
GameStop Corp. — Class A* | 336 | 7,278 | ||||||
International Game Technology, Inc. | 610 | 7,253 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 380 | 6,802 | ||||||
Whirlpool Corp. | 150 | 6,202 | ||||||
Tiffany & Co. | 249 | 5,884 | ||||||
Limited Brands, Inc. | 560 | 5,622 | ||||||
Newell Rubbermaid, Inc. | 569 | 5,565 | ||||||
Wynn Resorts Ltd.* | 130 | 5,494 | ||||||
Stanley Works | 160 | 5,456 | ||||||
Polo Ralph Lauren Corp. | 118 | 5,358 | ||||||
Black & Decker Corp. | 120 | 5,017 | ||||||
Leggett & Platt, Inc. | 320 | 4,861 | ||||||
Pulte Homes, Inc. | 440 | 4,809 | ||||||
Snap-On, Inc. | 120 | 4,726 | ||||||
Nordstrom, Inc. | 327 | 4,352 | ||||||
Sears Holdings Corp.* | 110 | 4,276 | ||||||
Abercrombie & Fitch Co. — Class A | 182 | 4,199 | ||||||
Scripps Networks Interactive, Inc. | 190 | 4,180 | ||||||
General Motors Corp. | 1,260 | 4,032 | ||||||
D.R. Horton, Inc. | 566 | 4,002 | ||||||
Washington Post Co. — Class B | 10 | 3,903 | ||||||
Interpublic Group of Companies, Inc.* | 982 | 3,889 | ||||||
Gannett Co., Inc. | 465 | 3,720 | ||||||
Eastman Kodak Co. | 550 | 3,619 | ||||||
Expedia, Inc.* | 426 | 3,510 | ||||||
RadioShack Corp. | 260 | 3,104 | ||||||
Goodyear Tire & Rubber Co.* | 496 | 2,961 | ||||||
Centex Corp. | 260 | 2,766 | ||||||
Lennar Corp. — Class A | 285 | 2,471 | ||||||
Big Lots, Inc.* | 170 | 2,463 | ||||||
Wyndham Worldwide Corp. | 373 | 2,443 | ||||||
KB HOME | 159 | 2,166 | ||||||
AutoNation, Inc.* | 216 | 2,134 | ||||||
Harman International | ||||||||
Industries, Inc. | 118 | 1,974 | ||||||
New York Times Co. — Class A | 240 | 1,759 | ||||||
Office Depot, Inc.* | 574 | 1,711 | ||||||
Meredith Corp. | 70 | 1,198 | ||||||
Jones Apparel Group, Inc. | 166 | 973 | ||||||
Total Consumer Discretionary | 1,356,586 | |||||||
UTILITIES 2.6% | ||||||||
Exelon Corp. | 1,357 | 75,463 | ||||||
Southern Co. | 1,603 | 59,311 | ||||||
Dominion Resources, Inc. | 1,201 | 43,044 | ||||||
FPL Group, Inc. | 836 | 42,076 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Duke Energy Corp. | 2,612 | $ | 39,206 | |||||
Entergy Corp. | 390 | 32,421 | ||||||
FirstEnergy Corp. | 630 | 30,605 | ||||||
Public Service Enterprise Group, Inc. | 1,037 | 30,249 | ||||||
PG&E Corp. | 743 | 28,762 | ||||||
American Electric Power Company, Inc. | 829 | 27,589 | ||||||
PPL Corp. | 770 | 23,631 | ||||||
Consolidated Edison, Inc. | 560 | 21,801 | ||||||
Edison International | 668 | 21,456 | ||||||
Progress Energy, Inc. | 535 | 21,320 | ||||||
Sempra Energy | 500 | 21,315 | ||||||
Xcel Energy, Inc. | 930 | 17,252 | ||||||
Ameren Corp. | 440 | 14,634 | ||||||
DTE Energy Co. | 336 | 11,985 | ||||||
Allegheny Energy, Inc. | 349 | 11,817 | ||||||
Questar Corp. | 357 | 11,670 | ||||||
AES Corp.* | 1,387 | 11,429 | ||||||
Wisconsin Energy Corp. | 240 | 10,075 | ||||||
Constellation Energy Group, Inc. | 368 | 9,233 | ||||||
Equitable Resources, Inc. | 270 | 9,059 | ||||||
CenterPoint Energy, Inc. | 707 | 8,922 | ||||||
SCANA Corp. | 240 | 8,544 | ||||||
Pepco Holdings, Inc. | 450 | 7,992 | ||||||
Integrys Energy Group, Inc. | 160 | 6,877 | ||||||
Pinnacle West Capital Corp. | 210 | 6,747 | ||||||
NiSource, Inc. | 569 | 6,242 | ||||||
TECO Energy, Inc. | 435 | 5,372 | ||||||
CMS Energy Corp. | 470 | 4,752 | ||||||
Nicor, Inc. | 88 | 3,057 | ||||||
Dynegy Inc.* | 1,040 | 2,080 | ||||||
Total Utilities | 685,988 | |||||||
TELECOMMUNICATION SERVICES 2.3% | ||||||||
AT&T, Inc. | 12,135 | 345,847 | ||||||
Verizon Communications, Inc. | 5,852 | 198,383 | ||||||
American Tower Corp. — Class A* | 821 | 24,072 | ||||||
Qwest Communications | ||||||||
International, Inc. | 3,020 | 10,993 | ||||||
Sprint Nextel Corp.* | 5,885 | 10,770 | ||||||
Embarq Corp. | 288 | 10,356 | ||||||
Windstream Corp. | 909 | 8,363 | ||||||
CenturyTel, Inc. | 207 | 5,657 | ||||||
Frontier Communications Corp. | 640 | 5,594 | ||||||
Total Telecommunication Services | 620,035 | |||||||
MATERIALS 1.8% | ||||||||
Monsanto Co. | 1,129 | 79,425 | ||||||
E.I. du Pont de Nemours and Co. | 1,860 | 47,058 | ||||||
Newmont Mining Corp. | 943 | 38,380 | ||||||
Praxair, Inc. | 640 | 37,990 |
44 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
S&P 500 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Nucor Corp. | 650 | $ | 30,030 | |||||
Dow Chemical Co. | 1,900 | 28,671 | ||||||
Air Products & Chemicals, Inc. | 425 | 21,365 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 780 | 19,063 | ||||||
Alcoa, Inc. | 1,650 | 18,579 | ||||||
Vulcan Materials Co. | 230 | 16,003 | ||||||
Rohm & Haas Co. | 255 | 15,757 | ||||||
PPG Industries, Inc. | 340 | 14,426 | ||||||
Weyerhaeuser Co. | 437 | 13,377 | ||||||
Ecolab, Inc. | 350 | 12,303 | ||||||
Sigma-Aldrich Corp. | 255 | 10,771 | ||||||
International Paper Co. | 877 | 10,349 | ||||||
Owens-Illinois, Inc.* | 340 | 9,292 | ||||||
United States Steel Corp. | 237 | 8,816 | ||||||
Ball Corp. | 190 | 7,902 | ||||||
Pactiv Corp.* | 267 | 6,643 | ||||||
CF Industries Holdings, Inc. | 120 | 5,899 | ||||||
Allegheny Technologies, Inc. | 200 | 5,106 | ||||||
Bemis Co. | 210 | 4,973 | ||||||
Sealed Air Corp. | 327 | 4,885 | ||||||
Eastman Chemical Co. | 150 | 4,757 | ||||||
International Flavors & | ||||||||
Fragrances, Inc. | 160 | 4,755 | ||||||
MeadWestvaco Corp. | 348 | 3,894 | ||||||
AK Steel Holding Corp. | 230 | 2,144 | ||||||
Titanium Metals Corp. | 180 | 1,586 | ||||||
Total Materials | 484,199 | |||||||
Total Common Stocks (Cost $15,283,956) | 16,221,554 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 22.7% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 1,543,868 | 1,543,868 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,543,868 | 1,543,868 |
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | $ | 1,543,868 | $ | 1,543,868 | ||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,393,455 | 1,393,455 | ||||||
Total Repurchase Agreements (Cost $6,025,059) | 6,025,059 | |||||||
Total Investments 83.9% (Cost $21,309,015) | $ | 22,246,613 | ||||||
Other Assets in Excess of Liabilities – 16.1% | $ | 4,266,574 | ||||||
Net Assets – 100.0% | $ | 26,513,187 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $25,123,950) | 558 | $ | 529,828 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
Goldman Sachs International January 2009 S&P 500 Index Swap, Terminating 01/08/09** (Notional Market Value $11,507,669) | 12,740 | $ | 377,636 | |||||
* | Non-Income Producing Security. | |
** | Total Return based on S&P 500 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
REIT — Real Estate Investment Trust. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 45 |
SCHEDULE OF INVESTMENTS
December 31, 2008
NASDAQ – 100® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 76.5% | ||||||||
INFORMATION TECHNOLOGY 45.1% | ||||||||
Apple, Inc.* | 20,560 | $ | 1,754,796 | |||||
Qualcomm, Inc. | 33,100 | 1,185,973 | ||||||
Microsoft Corp. | 50,750 | 986,580 | ||||||
Google, Inc. — Class A* | 2,420 | 744,513 | ||||||
Oracle Corp.* | 35,630 | 631,720 | ||||||
Cisco Systems, Inc.* | 34,680 | 565,284 | ||||||
Intel Corp. | 32,290 | 473,372 | ||||||
Research In Motion Ltd.* | 9,380 | 380,641 | ||||||
Automatic Data Processing, Inc. | 5,950 | 234,073 | ||||||
eBay, Inc.* | 15,790 | 220,428 | ||||||
Symantec Corp.* | 14,490 | 195,905 | ||||||
Adobe Systems, Inc.* | 8,630 | 183,733 | ||||||
Activision Blizzard Inc.* | 19,610 | 169,430 | ||||||
Intuit, Inc.* | 6,680 | 158,917 | ||||||
CA, Inc. | 8,250 | 152,873 | ||||||
Paychex, Inc. | 5,680 | 149,270 | ||||||
Yahoo!, Inc.* | 11,060 | 134,932 | ||||||
Dell, Inc.* | 11,860 | 121,446 | ||||||
Fiserv, Inc.* | 3,320 | 120,748 | ||||||
Applied Materials, Inc. | 11,500 | 116,495 | ||||||
Altera Corp. | 6,930 | 115,800 | ||||||
Broadcom Corp. — Class A* | 6,760 | 114,717 | ||||||
Linear Technology Corp. | 4,910 | 108,609 | ||||||
Xilinx, Inc. | 6,020 | 107,276 | ||||||
Juniper Networks, Inc.* | 5,750 | 100,683 | ||||||
Electronic Arts, Inc.* | 5,360 | 85,974 | ||||||
Cognizant Technology Solutions Corp. — Class A* | 4,710 | 85,063 | ||||||
Citrix Systems, Inc.* | 3,580 | 84,381 | ||||||
NetApp, Inc.* | 5,720 | 79,908 | ||||||
Autodesk, Inc.* | 3,910 | 76,832 | ||||||
Flir Systems, Inc.* | 2,410 | 73,939 | ||||||
KLA-Tencor Corp. | 3,390 | 73,868 | ||||||
Nvidia Corp.* | 8,740 | 70,532 | ||||||
Check Point Software Technologies Ltd.* | 3,510 | 66,655 | ||||||
Marvell Technology Group Ltd.* | 9,670 | 64,499 | ||||||
Maxim Integrated Products, Inc. | 5,160 | 58,927 | ||||||
VeriSign, Inc.* | 3,030 | 57,812 | ||||||
Baidu.com — SP ADR* | 440 | 57,451 | ||||||
Microchip Technology, Inc. | 2,510 | 49,020 | ||||||
Infosys Technologies Ltd. — SP ADR | 1,860 | 45,700 | ||||||
Lam Research Corp.* | 2,140 | 45,539 | ||||||
Logitech International SA* | 2,890 | 45,026 | ||||||
Akamai Technologies, Inc.* | 2,690 | 40,592 | ||||||
IAC/InterActiveCorp* | 2,420 | 38,067 | ||||||
Flextronics International Ltd.* | 14,560 | 37,274 | ||||||
Seagate Technology | 8,070 | 35,750 | ||||||
Sun Microsystems, Inc.* | 5,330 | 20,361 | ||||||
Total Information Technology | 10,521,384 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
HEALTH CARE 15.5% | ||||||||
Gilead Sciences, Inc.* | 14,870 | $ | 760,452 | |||||
Amgen, Inc.* | 8,190 | 472,972 | ||||||
Teva Pharmaceutical Industries Ltd. — SP ADR | 10,580 | 450,391 | ||||||
Celgene Corp.* | 7,530 | 416,258 | ||||||
Genzyme Corp.* | 5,620 | 372,999 | ||||||
Biogen Idec, Inc.* | 5,260 | 250,534 | ||||||
Express Scripts, Inc.* | 3,660 | 201,227 | ||||||
Cephalon, Inc.* | 1,110 | 85,514 | ||||||
Intuitive Surgical, Inc.* | 650 | 82,543 | ||||||
Vertex Pharmaceuticals, Inc.* | 2,610 | 79,292 | ||||||
Life Technologies Corp.* | 2,910 | 67,832 | ||||||
DENTSPLY International, Inc. | 2,370 | 66,929 | ||||||
Warner Chilcott Ltd.* | 4,140 | 60,030 | ||||||
Hologic, Inc.* | 4,470 | 58,423 | ||||||
Pharmaceutical Product Development, Inc. | 1,900 | 55,119 | ||||||
Henry Schein, Inc.* | 1,480 | 54,301 | ||||||
Illumina, Inc.* | 2,010 | 52,361 | ||||||
Patterson Companies, Inc.* | 1,930 | 36,188 | ||||||
Total Health Care | 3,623,365 | |||||||
CONSUMER DISCRETIONARY 9.2% | ||||||||
Comcast Corp. — Class A | 23,920 | 403,770 | ||||||
DIRECTV Group, Inc.* | 12,680 | 290,499 | ||||||
Amazon.com, Inc.* | 4,720 | 242,042 | ||||||
Apollo Group, Inc. — Class A* | 2,670 | 204,575 | ||||||
Starbucks Corp.* | 16,900 | 159,874 | ||||||
Bed Bath & Beyond, Inc.* | 5,790 | 147,182 | ||||||
Staples, Inc. | 7,950 | 142,464 | ||||||
Wynn Resorts Ltd.* | 2,020 | 85,365 | ||||||
Sears Holdings Corp.* | 2,140 | 83,182 | ||||||
O’Reilly Automotive, Inc.* | 2,220 | 68,243 | ||||||
Ross Stores, Inc. | 2,210 | 65,703 | ||||||
Garmin Ltd. | 3,110 | 59,619 | ||||||
Urban Outfitters, Inc.* | 2,750 | 41,195 | ||||||
Liberty Global, Inc. — Class A* | 2,520 | 40,118 | ||||||
DISH Network Corp. — Class A* | 3,570 | 39,591 | ||||||
Expedia, Inc.* | 4,680 | 38,563 | ||||||
Liberty Media Corp - Interactive* | 9,020 | 28,142 | ||||||
Focus Media Holding — SP ADR* | 1,900 | 17,271 | ||||||
Total Consumer Discretionary | 2,157,398 | |||||||
INDUSTRIALS 4.5% | ||||||||
Paccar, Inc. | 6,740 | 192,764 | ||||||
First Solar, Inc.* | 1,180 | 162,793 | ||||||
CH Robinson Worldwide, Inc. | 2,770 | 152,433 | ||||||
Expeditors International of | ||||||||
Washington, Inc. | 3,450 | 114,782 |
46 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
NASDAQ — 100® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Fastenal Co. | 2,350 | $ | 81,898 | |||||
Stericycle, Inc.* | 1,490 | 77,599 | ||||||
Cintas Corp. | 3,040 | 70,619 | ||||||
Ryanair Holdings PLC — SP ADR* | 1,930 | 56,124 | ||||||
J.B. Hunt Transport Services, Inc. | 2,090 | 54,904 | ||||||
Foster Wheeler Ltd.* | 2,190 | 51,202 | ||||||
Joy Global, Inc. | 1,660 | 37,997 | ||||||
Total Industrials | 1,053,115 | |||||||
CONSUMER STAPLES 1.1% | ||||||||
Costco Wholesale Corp. | 3,770 | 197,925 | ||||||
Hansen Natural Corp.* | 1,520 | 50,966 | ||||||
Total Consumer Staples | 248,891 | |||||||
TELECOMMUNICATION SERVICES 0.6% | ||||||||
Millicom International | ||||||||
Cellular SA | 1,740 | 78,143 | ||||||
NII Holdings, Inc. — Class B* | 2,670 | 48,541 | ||||||
Total Telecommunication Services | 126,684 | |||||||
MATERIALS 0.5% | ||||||||
Sigma-Aldrich Corp. | 2,000 | 84,480 | ||||||
Steel Dynamics, Inc. | 3,110 | 34,770 | ||||||
Total Materials | 119,250 | |||||||
Total Common Stocks (Cost $15,679,573) | 17,850,087 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 10.4% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 622,620 | 622,620 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 622,620 | 622,620 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 622,620 | 622,620 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 561,961 | 561,961 | ||||||
Total Repurchase Agreements (Cost $2,429,821) | 2,429,821 | |||||||
Total Investments 86.9% (Cost $18,109,394) | $ | 20,279,908 | ||||||
Other Assets in Excess of Liabilities — 13.1% | $ | 3,067,584 | ||||||
Net Assets — 100.0% | $ | 23,347,492 | ||||||
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $20,380,610) | 842 | $ | 198,498 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
Goldman Sachs International January 2009 NASDAQ-100 Index Swap, Terminating 01/08/09** (Notional Market Value $8,649,829) | 7,139 | $ | 76,539 | |||||
* | Non-Income Producing Security. | |
** | Total Return based on NASDAQ-100 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 47 |
SCHEDULE OF INVESTMENTS
December 31, 2008
MID-CAP 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 52.7% | ||||||||
FINANCIALS 11.1% | ||||||||
Everest Re Group Ltd. | 640 | $ | 48,730 | |||||
Health Care REIT, Inc. | 1,080 | 45,576 | ||||||
W.R. Berkley Corp. | 1,450 | 44,950 | ||||||
New York Community Bancorp, Inc. | 3,600 | 43,056 | ||||||
Fidelity National Financial, Inc. — Class A | 2,210 | 39,227 | ||||||
Federal Realty Investment Trust | 620 | 38,490 | ||||||
Regency Centers Corp. | 730 | 34,091 | ||||||
Reinsurance Group of America, Inc. | 760 | 32,543 | ||||||
HCC Insurance Holdings, Inc. | 1,196 | 31,993 | ||||||
Cullen/Frost Bankers, Inc. | 620 | 31,422 | ||||||
Commerce Bancshares, Inc. | 689 | 30,282 | ||||||
Nationwide Health Properties, Inc. | 1,035 | 29,725 | ||||||
Valley National Bancorp | 1,420 | 28,755 | ||||||
Old Republic International Corp. | 2,410 | 28,727 | ||||||
Associated Banc-Corp. | 1,340 | 28,046 | ||||||
First American Corp. | 970 | 28,023 | ||||||
Rayonier, Inc. | 820 | 25,707 | ||||||
Arthur J. Gallagher & Co. | 990 | 25,651 | ||||||
Eaton Vance Corp. | 1,210 | 25,422 | ||||||
Brown & Brown, Inc. | 1,210 | 25,289 | ||||||
Realty Income Corp. | 1,088 | 25,187 | ||||||
Synovus Financial Corp. | 2,940 | 24,402 | ||||||
AMB Property Corp. | 1,030 | 24,123 | ||||||
Liberty Property Trust | 1,030 | 23,515 | ||||||
Hanover Insurance Group, Inc. | 530 | 22,774 | ||||||
Bank of Hawaii Corp. | 500 | 22,585 | ||||||
SEI Investments Co. | 1,390 | 21,837 | ||||||
Essex Property Trust, Inc. | 280 | 21,490 | ||||||
Stancorp Financial Group, Inc. | 510 | 21,303 | ||||||
Alexandria Real Estate Equities, Inc. | 340 | 20,516 | ||||||
City National Corp. | 420 | 20,454 | ||||||
First Niagara Financial Group, Inc. | 1,240 | 20,051 | ||||||
UDR, Inc. | 1,420 | 19,582 | ||||||
American Financial Group, Inc. | 790 | 18,075 | ||||||
Highwoods Properties, Inc. | 660 | 18,058 | ||||||
Affiliated Managers Group, Inc.* | 430 | 18,026 | ||||||
BancorpSouth, Inc. | 760 | 17,754 | ||||||
Jefferies Group, Inc. | 1,260 | 17,716 | ||||||
Fulton Financial Corp. | 1,830 | 17,605 | ||||||
Camden Property Trust | 560 | 17,550 | ||||||
FirstMerit Corp. | 850 | 17,501 | ||||||
Raymond James Financial, Inc. | 1,010 | 17,301 | ||||||
Mercury General Corp. | 370 | 17,016 | ||||||
Mack-Cali Realty Corp. | 690 | 16,905 | ||||||
Duke Realty Corp. | 1,540 | 16,878 | ||||||
Weingarten Realty Investors | 810 | 16,759 |
MARKET | ||||||||
SHARES | VALUE | |||||||
TCF Financial Corp. | 1,200 | $ | 16,392 | |||||
Wilmington Trust Corp. | 710 | 15,790 | ||||||
SL Green Realty Corp. | 600 | 15,540 | ||||||
Westamerica Bancorporation | 300 | 15,345 | ||||||
BRE Properties, Inc. — Class A | 530 | 14,829 | ||||||
Hospitality Properties Trust | 980 | 14,573 | ||||||
Macerich Co. | 800 | 14,528 | ||||||
Omega Healthcare Investors, Inc. | 870 | 13,894 | ||||||
Apollo Investment Corp. | 1,490 | 13,872 | ||||||
Astoria Financial Corp. | 840 | 13,843 | ||||||
Washington Federal, Inc. | 920 | 13,763 | ||||||
Waddell & Reed Financial, Inc. — Class A | 890 | 13,759 | ||||||
Cathay General Bancorp | 520 | 12,350 | ||||||
Potlatch Corp. | 410 | 10,664 | ||||||
Protective Life Corp. | 730 | 10,476 | ||||||
Jones Lang LaSalle, Inc. | 360 | 9,972 | ||||||
AmeriCredit Corp.* | 1,220 | 9,321 | ||||||
SVB Financial Group* | 340 | 8,918 | ||||||
Unitrin, Inc. | 510 | 8,129 | ||||||
Webster Financial Corp. | 550 | 7,579 | ||||||
PacWest Bancorp | 260 | 6,994 | ||||||
Cousins Properties, Inc. | 460 | 6,371 | ||||||
Equity One, Inc. | 340 | 6,018 | ||||||
Colonial BancGroup, Inc. | 2,120 | 4,388 | ||||||
Horace Mann Educators Corp. | 410 | 3,768 | ||||||
The PMI Group, Inc. | 730 | 1,424 | ||||||
Total Financials | 1,463,168 | |||||||
INDUSTRIALS 7.6% | ||||||||
Roper Industries, Inc. | 940 | 40,805 | ||||||
Quanta Services, Inc.* | 2,060 | 40,788 | ||||||
URS Corp.* | 870 | 35,470 | ||||||
AMETEK, Inc. | 1,120 | 33,835 | ||||||
Alliant Techsystems, Inc.* | 340 | 29,158 | ||||||
Manpower, Inc. | 820 | 27,872 | ||||||
Donaldson Company | 800 | 26,920 | ||||||
Waste Connections, Inc.* | 830 | 26,203 | ||||||
Joy Global, Inc. | 1,130 | 25,866 | ||||||
KBR, Inc. | 1,690 | 25,688 | ||||||
Pentair, Inc. | 1,030 | 24,380 | ||||||
Harsco Corp. | 870 | 24,082 | ||||||
FTI Consulting, Inc.* | 530 | 23,680 | ||||||
SPX Corp. | 570 | 23,114 | ||||||
Lincoln Electric Holdings, Inc. | 450 | 22,919 | ||||||
AGCO Corp.* | 960 | 22,646 | ||||||
J.B. Hunt Transport Services, Inc. | 860 | 22,592 | ||||||
Corrections Corporation of America* | 1,310 | 21,432 | ||||||
IDEX Corp. | 860 | 20,769 | ||||||
Wabtec Corp. | 510 | 20,273 | ||||||
Hubbell, Inc. — Class B | 590 | 19,281 | ||||||
Kansas City Southern* | 950 | 18,098 | ||||||
Copart, Inc.* | 660 | 17,945 |
48 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
MID-CAP 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Shaw Group, Inc.* | 870 | $ | 17,809 | |||||
Timken Co. | 890 | 17,471 | ||||||
MSC Industrial Direct Co. | 470 | 17,310 | ||||||
Terex Corp.* | 990 | 17,147 | ||||||
Kennametal, Inc. | 760 | 16,864 | ||||||
GATX Corp. | 510 | 15,795 | ||||||
Granite Construction, Inc. | 340 | 14,936 | ||||||
Graco, Inc. | 620 | 14,713 | ||||||
Bucyrus International, Inc. | 780 | 14,446 | ||||||
Thomas & Betts Corporation* | 580 | 13,932 | ||||||
JetBlue Airways Corp.* | 1,916 | 13,604 | ||||||
Clean Harbors, Inc.* | 210 | 13,322 | ||||||
Carlisle Companies, Inc. | 640 | 13,248 | ||||||
Woodward Governor Co. | 570 | 13,121 | ||||||
Trinity Industries, Inc. | 830 | 13,081 | ||||||
Con-way Inc. | 480 | 12,768 | ||||||
Nordson Corp. | 360 | 11,624 | ||||||
Brink’s Co. | 430 | 11,558 | ||||||
Alaska Air Group, Inc.* | 380 | 11,115 | ||||||
Alexander & Baldwin, Inc. | 430 | 10,776 | ||||||
Crane Co. | 510 | 8,792 | ||||||
BE Aerospace, Inc.* | 1,040 | 7,998 | ||||||
Corporate Executive Board Co. | 360 | 7,942 | ||||||
Deluxe Corp. | 530 | 7,929 | ||||||
Werner Enterprises, Inc. | 450 | 7,803 | ||||||
Navigant Consulting, Inc.* | 490 | 7,776 | ||||||
Rollins, Inc. | 430 | 7,774 | ||||||
Mine Safety Appliances Co. | 310 | 7,412 | ||||||
MPS Group, Inc.* | 970 | 7,304 | ||||||
Herman Miller, Inc. | 560 | 7,297 | ||||||
HNI Corp. | 460 | 7,286 | ||||||
Oshkosh Corp. | 780 | 6,934 | ||||||
United Rentals, Inc.* | 630 | 5,746 | ||||||
AirTran Holdings, Inc.* | 1,230 | 5,461 | ||||||
Korn/Ferry International, Inc.* | 470 | 5,367 | ||||||
Federal Signal Corp. | 500 | 4,105 | ||||||
Kelly Services, Inc. — Class A | 290 | 3,773 | ||||||
Dycom Industries, Inc.* | 410 | 3,370 | ||||||
YRC Worldwide, Inc.* | 620 | 1,779 | ||||||
Total Industrials | 1,000,304 | |||||||
CONSUMER DISCRETIONARY 7.4% | ||||||||
O’Reilly Automotive, Inc.* | 1,410 | 43,343 | ||||||
Ross Stores, Inc. | 1,350 | 40,135 | ||||||
Dollar Tree, Inc.* | 950 | 39,710 | ||||||
DeVry, Inc. | 640 | 36,742 | ||||||
Advance Auto Parts, Inc. | 990 | 33,313 | ||||||
Strayer Education, Inc. | 150 | 32,161 | ||||||
ITT Educational Services, Inc.* | 330 | 31,343 | ||||||
priceline.com, Inc.* | 420 | 30,933 | ||||||
Toll Brothers, Inc.* | 1,360 | 29,145 | ||||||
NVR, Inc.* | 60 | 27,375 | ||||||
BorgWarner, Inc. | 1,210 | 26,342 | ||||||
Mohawk Industries, Inc.* | 590 | 25,352 | ||||||
Petsmart, Inc. | 1,330 | 24,538 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Wendy’s/Arby’s Group, Inc. — Class A | 4,370 | $ | 21,588 | |||||
Chipotle Mexican Grill, Inc. — Class A* | 340 | 21,073 | ||||||
DreamWorks Animation SKG, Inc. — Class A* | 810 | 20,461 | ||||||
American Eagle Outfitters, Inc. | 2,160 | 20,218 | ||||||
CarMax, Inc.* | 2,300 | 18,124 | ||||||
Urban Outfitters, Inc.* | 1,190 | 17,826 | ||||||
LKQ Corp.* | 1,470 | 17,140 | ||||||
John Wiley & Sons, Inc. — Class A | 450 | 16,011 | ||||||
Marvel Entertainment, Inc.* | 510 | 15,682 | ||||||
Tupperware Brands Corp. | 650 | 14,755 | ||||||
Corinthian Colleges, Inc.* | 890 | 14,569 | ||||||
Career Education Corp.* | 770 | 13,814 | ||||||
Service Corporation International | 2,670 | 13,270 | ||||||
Netflix, Inc.* | 440 | 13,152 | ||||||
Gentex Corp. | 1,460 | 12,892 | ||||||
Dick’s Sporting Goods, Inc.* | 890 | 12,558 | ||||||
Hanesbrands, Inc.* | 980 | 12,495 | ||||||
Rent-A-Center, Inc.* | 700 | 12,355 | ||||||
Scientific Games Corp. — Class A* | 680 | 11,927 | ||||||
Foot Locker, Inc. | 1,620 | 11,891 | ||||||
Matthews International Corp. — Class A | 320 | 11,738 | ||||||
M.D.C. Holdings, Inc. | 380 | 11,514 | ||||||
Aeropostale, Inc.* | 700 | 11,270 | ||||||
Brinker International, Inc. | 1,060 | 11,172 | ||||||
Phillips-Van Heusen Corp. | 540 | 10,870 | ||||||
Lamar Advertising Company* | 790 | 9,922 | ||||||
Guess?, Inc. | 630 | 9,670 | ||||||
The Warnaco Group, Inc.* | 490 | 9,619 | ||||||
Brink’s Home Security Holdings, Inc.* | 430 | 9,426 | ||||||
Under Armour, Inc.* | 380 | 9,059 | ||||||
International Speedway Corp. — Class A | 290 | 8,332 | ||||||
Ryland Group, Inc. | 450 | 7,952 | ||||||
Collective Brands, Inc.* | 670 | 7,852 | ||||||
Chico’s FAS, Inc.* | 1,850 | 7,733 | ||||||
Williams-Sonoma, Inc. | 910 | 7,153 | ||||||
J. Crew Group, Inc.* | 540 | 6,588 | ||||||
Regis Corp. | 450 | 6,539 | ||||||
Bob Evans Farms, Inc. | 320 | 6,538 | ||||||
Saks, Inc.* | 1,490 | 6,526 | ||||||
Callaway Golf Co. | 680 | 6,317 | ||||||
Cheesecake Factory, Inc.* | 620 | 6,262 | ||||||
Sotheby’s | 700 | 6,223 | ||||||
Barnes & Noble, Inc. | 390 | 5,850 | ||||||
Timberland Co. — Class A* | 480 | 5,544 | ||||||
99 Cents Only Stores* | 490 | 5,356 | ||||||
Thor Industries, Inc. | 370 | 4,877 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 49 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
MID-CAP 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Life Time Fitness, Inc.* | 370 | $ | 4,792 | |||||
Scholastic Corp. | 280 | 3,802 | ||||||
American Greetings Corp. — Class A | 470 | 3,558 | ||||||
AnnTaylor Stores Corp.* | 600 | 3,462 | ||||||
Boyd Gaming Corp. | 600 | 2,838 | ||||||
Harte-Hanks, Inc. | 400 | 2,496 | ||||||
ArvinMeritor, Inc. | 770 | 2,195 | ||||||
Blyth, Inc. | 250 | 1,960 | ||||||
Modine Manufacturing Co. | 340 | 1,656 | ||||||
Belo Corp. — Class A | 920 | 1,435 | ||||||
Coldwater Creek, Inc.* | 500 | 1,425 | ||||||
Pacific Sunwear of California, Inc.* | 690 | 1,097 | ||||||
Furniture Brands International, Inc. | 430 | 950 | ||||||
Hovnanian Enterprises, Inc. — Class A* | 530 | 912 | ||||||
Total Consumer Discretionary | 974,713 | |||||||
INFORMATION TECHNOLOGY 6.6% | ||||||||
SAIC, Inc.* | 2,120 | 41,298 | ||||||
Alliance Data Systems Corp.* | 670 | 31,175 | ||||||
Avnet, Inc.* | 1,570 | 28,590 | ||||||
Synopsys, Inc.* | 1,510 | 27,965 | ||||||
Lam Research Corp.* | 1,310 | 27,877 | ||||||
Global Payments, Inc. | 840 | 27,544 | ||||||
Trimble Navigation Ltd.* | 1,250 | 27,012 | ||||||
Western Digital Corp.* | 2,320 | 26,564 | ||||||
ANSYS, Inc.* | 940 | 26,217 | ||||||
Lender Processing Services, Inc. | 880 | 25,916 | ||||||
Mettler-Toledo International, Inc.* | 350 | 23,590 | ||||||
Arrow Electronics, Inc.* | 1,250 | 23,550 | ||||||
NCR Corp.* | 1,650 | 23,331 | ||||||
Ingram Micro, Inc. — Class A* | 1,720 | 23,031 | ||||||
Sybase, Inc.* | 850 | 21,054 | ||||||
FactSet Research Systems Inc. | 440 | 19,466 | ||||||
Diebold, Inc. | 690 | 19,382 | ||||||
F5 Networks, Inc.* | 830 | 18,974 | ||||||
Broadridge Financial Solutions, Inc. | 1,480 | 18,559 | ||||||
Jack Henry & Associates, Inc. | 880 | 17,081 | ||||||
DST Systems, Inc.* | 430 | 16,331 | ||||||
NeuStar, Inc.* | 820 | 15,687 | ||||||
Parametric Technology Corp.* | 1,210 | 15,306 | ||||||
Metavante Technologies, Inc.* | 940 | 15,143 | ||||||
Atmel Corp.* | 4,680 | 14,648 | ||||||
National Instruments Corp. | 600 | 14,616 | ||||||
Cree, Inc.* | 920 | 14,600 | ||||||
Zebra Technologies Corp. — Class A* | 660 | 13,372 | ||||||
Mantech International Corp. — Class A* | 220 | 11,922 | ||||||
Silicon Laboratories, Inc.* | 480 | 11,894 | ||||||
Intersil Corp. — Class A | 1,280 | 11,763 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Polycom, Inc.* | 870 | $ | 11,754 | |||||
CommScope, Inc.* | 740 | 11,500 | ||||||
Gartner, Inc. — Class A* | 620 | 11,055 | ||||||
Macrovision Solutions Corp.* | 870 | 11,005 | ||||||
International Rectifier Corp.* | 760 | 10,260 | ||||||
Cadence Design Systems, Inc.* | 2,720 | 9,955 | ||||||
Integrated Device Technology, Inc.* | 1,770 | 9,930 | ||||||
3Com Corp.* | 4,250 | 9,690 | ||||||
Digital River, Inc.* | 390 | 9,672 | ||||||
Tech Data Corp.* | 520 | 9,277 | ||||||
Fair Isaac Corp. | 510 | 8,599 | ||||||
ADTRAN, Inc. | 570 | 8,482 | ||||||
Avocent Corp.* | 470 | 8,418 | ||||||
SRA International, Inc. — Class A* | 440 | 7,590 | ||||||
Semtech Corp.* | 630 | 7,100 | ||||||
Plantronics, Inc. | 510 | 6,732 | ||||||
ADC Telecommunications, Inc.* | 1,230 | 6,728 | ||||||
Vishay Intertechnology, Inc.* | 1,950 | 6,669 | ||||||
Wind River Systems, Inc.* | 710 | 6,411 | ||||||
Fairchild Semiconductor International, Inc.* | 1,300 | 6,357 | ||||||
ValueClick, Inc.* | 910 | 6,224 | ||||||
Acxiom Corp. | 710 | 5,758 | ||||||
ACI Worldwide, Inc.* | 360 | 5,724 | ||||||
Mentor Graphics Corp.* | 970 | 5,015 | ||||||
Imation Corp. | 320 | 4,342 | ||||||
Palm, Inc.* | 1,150 | 3,530 | ||||||
Advent Software, Inc.* | 170 | 3,395 | ||||||
RF Micro Devices, Inc.* | 2,750 | 2,145 | ||||||
Total Information Technology | 866,775 | |||||||
HEALTH CARE 6.0% | ||||||||
Vertex Pharmaceuticals, Inc.* | 1,570 | 47,697 | ||||||
Pharmaceutical Product Development, Inc. | 1,230 | 35,682 | ||||||
Hologic, Inc.* | 2,680 | 35,028 | ||||||
Henry Schein, Inc.* | 930 | 34,122 | ||||||
Edwards Lifesciences Corp.* | 580 | 31,871 | ||||||
Endo Pharmaceuticals Holdings, Inc.* | 1,220 | 31,574 | ||||||
Covance, Inc.* | 660 | 30,380 | ||||||
Omnicare, Inc. | 1,090 | 30,259 | ||||||
ResMed, Inc.* | 790 | 29,609 | ||||||
Beckman Coulter, Inc. | 660 | 29,000 | ||||||
Cerner Corp.* | 710 | 27,300 | ||||||
Perrigo Co. | 810 | 26,171 | ||||||
Techne Corp. | 400 | 25,808 | ||||||
Gen-Probe, Inc.* | 570 | 24,419 | ||||||
IDEXX Laboratories, Inc.* | 620 | 22,370 | ||||||
Teleflex, Inc. | 420 | 21,042 | ||||||
Lincare Holdings, Inc.* | 780 | 21,005 | ||||||
Universal Health Services, Inc. — Class B | 530 | 19,912 |
50 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
MID-CAP 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Valeant Pharmaceuticals | ||||||||
International* | 850 | $ | 19,465 | |||||
Thoratec Corp.* | 590 | 19,169 | ||||||
Charles River Laboratories International, Inc.* | 710 | 18,602 | ||||||
VCA Antech, Inc.* | 880 | 17,494 | ||||||
Psychiatric Solutions, Inc.* | 580 | 16,153 | ||||||
Bio-Rad Laboratories, Inc. — Class A* | 200 | 15,062 | ||||||
United Therapeutics Corp.* | 240 | 15,012 | ||||||
Masimo Corp.* | 500 | 14,915 | ||||||
Steris Corp. | 620 | 14,812 | ||||||
Community Health Systems, Inc.* | 980 | 14,288 | ||||||
LifePoint Hospitals, Inc.* | 560 | 12,790 | ||||||
Sepracor, Inc.* | 1,140 | 12,517 | ||||||
Health Net, Inc.* | 1,080 | 11,761 | ||||||
Kinetic Concepts, Inc.* | 590 | 11,316 | ||||||
Hill-Rom Holdings, Inc. | 650 | 10,699 | ||||||
Varian, Inc.* | 300 | 10,053 | ||||||
Medicis Pharmaceutical Corp. — Class A | 590 | 8,201 | ||||||
WellCare Health Plans, Inc.* | 440 | 5,658 | ||||||
Health Management Associates, Inc. — Class A* | 2,550 | 4,565 | ||||||
Kindred Healthcare, Inc.* | 310 | 4,036 | ||||||
Advanced Medical Optics, Inc.* | 540 | 3,569 | ||||||
Affymetrix, Inc.* | 730 | 2,183 | ||||||
Total Health Care | 785,569 | |||||||
UTILITIES 4.3% | ||||||||
MDU Resources Group, Inc. | 1,920 | 41,434 | ||||||
NSTAR | 1,120 | 40,869 | ||||||
Northeast Utilities | 1,630 | 39,218 | ||||||
Puget Energy, Inc. | 1,360 | 37,087 | ||||||
Alliant Energy Corp. | 1,150 | 33,557 | ||||||
Oneok, Inc. | 1,090 | 31,741 | ||||||
Aqua America, Inc. | 1,410 | 29,032 | ||||||
DPL, Inc. | 1,210 | 27,636 | ||||||
UGI Corp. | 1,130 | 27,595 | ||||||
National Fuel Gas Co. | 830 | 26,004 | ||||||
AGL Resources, Inc. | 800 | 25,080 | ||||||
OGE Energy Corp. | 970 | 25,007 | ||||||
NV Energy, Inc. | 2,450 | 24,230 | ||||||
Great Plains Energy, Inc. | 1,240 | 23,969 | ||||||
Westar Energy, Inc. | 1,130 | 23,176 | ||||||
Energen Corp. | 750 | 21,997 | ||||||
Vectren Corp. | 850 | 21,258 | ||||||
Hawaiian Electric Industries, Inc. | 940 | 20,812 | ||||||
WGL Holdings, Inc. | 520 | 16,999 | ||||||
IDACORP, Inc. | 480 | 14,136 | ||||||
Black Hills Corp. | 400 | 10,784 | ||||||
PNM Resources, Inc. | 900 | 9,072 | ||||||
Total Utilities | 570,693 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
MATERIALS 3.6% | ||||||||
Martin Marietta Materials, Inc. | 430 | $ | 41,744 | |||||
FMC Corp. | 770 | 34,442 | ||||||
Airgas, Inc. | 850 | 33,141 | ||||||
Cliffs Natural Resources Inc | 1,190 | 30,476 | ||||||
Lubrizol Corp. | 700 | 25,473 | ||||||
AptarGroup, Inc. | 710 | 25,020 | ||||||
Sonoco Products Co. | 1,043 | 24,156 | ||||||
Albemarle Corp. | 950 | 21,185 | ||||||
Steel Dynamics, Inc. | 1,690 | 18,894 | ||||||
Valspar Corp. | 1,040 | 18,814 | ||||||
RPM International, Inc. | 1,350 | 17,942 | ||||||
Terra Industries, Inc. | 1,070 | 17,837 | ||||||
Olin Corp. | 798 | 14,428 | ||||||
Packaging Corporation of America | 1,070 | 14,402 | ||||||
Commercial Metals Co. | 1,190 | 14,125 | ||||||
Scotts Miracle-Gro Co. — Class A | 460 | 13,671 | ||||||
Reliance Steel & Aluminum Co. | 670 | 13,360 | ||||||
Sensient Technologies Corp. | 510 | 12,179 | ||||||
Greif, Inc. — Class A | 360 | 12,035 | ||||||
Cabot Corp. | 680 | 10,404 | ||||||
Cytec Industries, Inc. | 490 | 10,398 | ||||||
Carpenter Technology Corp. | 460 | 9,448 | ||||||
Minerals Technologies, Inc. | 200 | 8,180 | ||||||
Ashland, Inc. | 690 | 7,252 | ||||||
Worthington Industries, Inc. | 630 | 6,943 | ||||||
Temple-Inland, Inc. | 1,110 | 5,328 | ||||||
Chemtura Corp. | 2,540 | 3,556 | ||||||
Ferro Corp. | 460 | 3,243 | ||||||
Louisiana-Pacific Corp. | 950 | 1,482 | ||||||
Total Materials | 469,558 | |||||||
ENERGY 3.4% | ||||||||
FMC Technologies, Inc.* | 1,310 | 31,217 | ||||||
Pride International, Inc.* | 1,810 | 28,924 | ||||||
Denbury Resources, Inc.* | 2,580 | 28,173 | ||||||
Newfield Exploration Co.* | 1,380 | 27,255 | ||||||
Plains Exploration & Production Co.* | 1,120 | 26,029 | ||||||
Helmerich & Payne, Inc. | 1,100 | 25,025 | ||||||
Arch Coal, Inc. | 1,490 | 24,272 | ||||||
Cimarex Energy Co. | 870 | 23,298 | ||||||
Comstock Resources, Inc.* | 480 | 22,680 | ||||||
Tidewater, Inc. | 540 | 21,746 | ||||||
Patterson-UTI Energy, Inc. | 1,620 | 18,646 | ||||||
Southern Union Co. | 1,300 | 16,952 | ||||||
Forest Oil Corp.* | 1,020 | 16,820 | ||||||
Oceaneering International, Inc.* | 570 | 16,610 | ||||||
Exterran Holdings, Inc.* | 680 | 14,484 | ||||||
Encore Acquisition Co.* | 550 | 14,036 | ||||||
Frontier Oil Corp. | 1,090 | 13,767 | ||||||
Unit Corp.* | 490 | 13,093 | ||||||
Superior Energy Services* | 810 | 12,903 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 51 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
MID-CAP 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Overseas Shipholding | ||||||||
Group, Inc. | 260 | $ | 10,949 | |||||
Mariner Energy, Inc.* | 930 | 9,486 | ||||||
Bill Barrett Corp.* | 390 | 8,241 | ||||||
Helix Energy Solutions Group, Inc.* | 960 | 6,950 | ||||||
Quicksilver Resources, Inc.* | 1,170 | 6,517 | ||||||
Patriot Coal Corp.* | 660 | 4,125 | ||||||
Total Energy | 442,198 | |||||||
CONSUMER STAPLES 2.4% | ||||||||
Church & Dwight Co., Inc. | 730 | 40,968 | ||||||
Ralcorp Holdings, Inc.* | 590 | 34,456 | ||||||
Energizer Holdings, Inc.* | 610 | 33,025 | ||||||
Hansen Natural Corp.* | 770 | 25,818 | ||||||
Hormel Foods Corp. | 730 | 22,688 | ||||||
Corn Products International, Inc. | 780 | 22,503 | ||||||
Alberto-Culver Co. | 890 | 21,814 | ||||||
BJ’s Wholesale Club, Inc.* | 610 | 20,899 | ||||||
Flowers Foods, Inc. | 820 | 19,975 | ||||||
Smithfield Foods, Inc.* | 1,240 | 17,447 | ||||||
PepsiAmericas, Inc. | 600 | 12,216 | ||||||
Ruddick Corp. | 410 | 11,336 | ||||||
NBTY, Inc.* | 570 | 8,921 | ||||||
Universal Corp. | 260 | 7,766 | ||||||
Lancaster Colony Corp. | 210 | 7,203 | ||||||
Tootsie Roll Industries, Inc. | 270 | 6,915 | ||||||
Total Consumer Staples | 313,950 | |||||||
TELECOMMUNICATION SERVICES 0.3% | �� | |||||||
Telephone & Data Systems, Inc. | 1,110 | 35,243 | ||||||
Cincinnati Bell, Inc.* | 2,410 | 4,651 | ||||||
Total Telecommunication Services | 39,894 | |||||||
Total Common Stocks (Cost $9,098,345) | 6,926,822 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 28.0% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 945,878 | 945,878 | |||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 945,878 | 945,878 |
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | $ | 945,878 | $ | 945,878 | ||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 853,723 | 853,723 | ||||||
Total Repurchase Agreements (Cost $3,691,357) | 3,691,357 | |||||||
Total Investments 80.7% (Cost $12,789,702) | $ | 10,618,179 | ||||||
Other Assets in Excess of Liabilities – 19.3% | $ | 2,532,175 | ||||||
Net Assets – 100.0% | $ | 13,150,354 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
FUTURES CONTRACTS | ||||||||
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $7,854,210) | 147 | $ | 352,821 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENTS | ||||||||
Credit Suisse Capital, LLC March 2009 S&P MidCap 400 Index Swap, Terminating 03/26/09** (Notional Market Value $4,359,817) | 8,100 | $ | 139,176 | |||||
Goldman Sachs International January 2009 MidCap 400 Index Swap, Terminating 01/08/09** (Notional Market Value $511,333) | 950 | 20,732 | ||||||
(Total Notional Market Value $4,871,150) | $ | 159,908 | ||||||
* | Non-Income Producing Security. | |
** | Total Return based on S&P MidCap 400 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
REIT — Real Estate Investment Trust. |
52 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
INVERSE MID-CAP STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 20.8% | ||||||||
Farmer Mac* 0.07% due 01/07/09 | $ | 500,000 | $ | 499,995 | ||||
Federal Home Loan Bank* 0.20% due 01/06/09 | 500,000 | 499,989 | ||||||
Total Federal Agency Discount Notes (Cost $999,984) | 999,984 | |||||||
REPURCHASE AGREEMENTS† 71.2% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 878,564 | 878,564 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 878,564 | 878,564 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 878,564 | 878,564 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 792,968 | 792,968 | ||||||
Total Repurchase Agreements (Cost $3,428,660) | 3,428,660 | |||||||
Total Investments 92.0% (Cost $4,428,644) | $ | 4,428,644 | ||||||
Other Assets in Excess of Liabilities — 8.0% | $ | 383,898 | ||||||
Net Assets — 100.0% | $ | 4,812,542 | ||||||
Unrealized | ||||||||
Contracts | Loss | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $3,098,940) | 58 | $ | (104,331 | ) | ||||
UNREALIZED | ||||||||
UNITS | LOSS | |||||||
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT | ||||||||
Goldman Sachs International January 2009 S&P MidCap 400 Index Swap, Terminating 01/08/09** (Notional Market Value $511,333) | 950 | $ | (20,763 | ) | ||||
Credit Suisse Capital, LLC March 2009 S&P MidCap 400 Index Swap, Terminating 03/26/09** (Notional Market Value $1,182,352) | 2,197 | (55,028 | ) | |||||
(Total Notional Market Value $1,693,685) | �� | $ | (75,791 | ) | ||||
* | 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 MidCap 400 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 53 |
SCHEDULE OF INVESTMENTS
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 45.9% | ||||||||
FINANCIALS 10.7% | ||||||||
Realty Income Corp. | 220 | $ | 5,093 | |||||
Aspen Insurance Holdings Ltd. | 180 | 4,365 | ||||||
Senior Housing Properties Trust | 240 | 4,301 | ||||||
First Niagara Financial Group, Inc. | 248 | 4,010 | ||||||
Highwoods Properties, Inc. | 136 | 3,721 | ||||||
Validus Holdings Ltd. | 140 | 3,662 | ||||||
Platinum Underwriters Holdings Ltd. | 100 | 3,608 | ||||||
ProAssurance Corp.* | 67 | 3,536 | ||||||
FirstMerit Corp. | 170 | 3,500 | ||||||
Montpelier Re Holdings Ltd. | 196 | 3,291 | ||||||
IPC Holdings Ltd. | 110 | 3,289 | ||||||
UMB Financial Corp. | 66 | 3,243 | ||||||
Washington Real Estate Investment Trust | 113 | 3,198 | ||||||
Knight Capital Group, Inc. — Class A* | 196 | 3,165 | ||||||
Westamerica Bancorporation | 60 | 3,069 | ||||||
NewAlliance Bancshares, Inc. | 230 | 3,029 | ||||||
Healthcare Realty Trust, Inc. | 128 | 3,005 | ||||||
National Retail Properties, Inc. | 169 | 2,905 | ||||||
Susquehanna Bancshares, Inc. | 180 | 2,864 | ||||||
Corporate Office Properties Trust SBI | 92 | 2,824 | ||||||
Apollo Investment Corp. | 300 | 2,793 | ||||||
Home Properties, Inc. | 68 | 2,761 | ||||||
Omega Healthcare Investors, Inc. | 170 | 2,715 | ||||||
United Bankshares, Inc. | 80 | 2,658 | ||||||
Tanger Factory Outlet Centers, Inc. | 70 | 2,633 | ||||||
Cathay General Bancorp | 110 | 2,612 | ||||||
Odyssey Re Holdings Corp. | 50 | 2,590 | ||||||
Selective Insurance Group, Inc. | 110 | 2,522 | ||||||
Greenhill & Company, Inc. | 36 | 2,512 | ||||||
Argo Group International Holdings Ltd.* | 74 | 2,510 | ||||||
Zenith National Insurance Corp. | 79 | 2,494 | ||||||
MFA Mortgage Investments, Inc. | 420 | 2,474 | ||||||
Old National Bancorp | 136 | 2,470 | ||||||
National Penn Bancshares, Inc. | 170 | 2,467 | ||||||
RLI Corp. | 40 | 2,446 | ||||||
Stifel Financial Corp.* | 53 | 2,430 | ||||||
International Bancshares Corp. | 110 | 2,401 | ||||||
FNB Corp. | 180 | 2,376 | ||||||
Trustmark Corp. | 110 | 2,375 | ||||||
Prosperity Bancshares, Inc. | 80 | 2,367 | ||||||
Hancock Holding Co. | 50 | 2,273 | ||||||
East-West Bancorp, Inc. | 140 | 2,236 | ||||||
Mid-America Apartment Communities, Inc. | 60 | 2,230 | ||||||
First Financial Bankshares, Inc. | 40 | 2,208 | ||||||
Glacier Bancorp, Inc. | 110 | 2,092 | ||||||
Max Capital Group Ltd. | 116 | 2,053 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Signature Bank* | 71 | $ | 2,037 | |||||
Entertainment Properties Trust | 68 | 2,026 | ||||||
First Midwest Bancorp, Inc. | 100 | 1,997 | ||||||
Provident Financial Services, Inc. | 130 | 1,989 | ||||||
First Commonwealth Financial Corp. | 160 | 1,981 | ||||||
Potlatch Corp. | 76 | 1,977 | ||||||
MB Financial Corp. | 70 | 1,956 | ||||||
BioMed Realty Trust, Inc. | 166 | 1,946 | ||||||
Franklin Street Properties Corp., Inc. | 130 | 1,917 | ||||||
NBT Bancorp, Inc. | 68 | 1,901 | ||||||
Umpqua Holding Corp. | 130 | 1,881 | ||||||
DCT Industrial Trust, Inc. | 370 | 1,872 | ||||||
American Campus Communities, Inc. | 90 | 1,843 | ||||||
Sovran Self Storage, Inc. | 50 | 1,800 | ||||||
Employers Holdings, Inc. | 109 | 1,798 | ||||||
PrivateBancorp, Inc. | 55 | 1,785 | ||||||
S&T Bancorp, Inc. | 50 | 1,775 | ||||||
Extra Space Storage, Inc. | 170 | 1,754 | ||||||
Eastgroup Properties, Inc. | 48 | 1,708 | ||||||
First Bancorp Puerto Rico | 150 | 1,671 | ||||||
CVB Financial Corp. | 140 | 1,666 | ||||||
Pacific Capital Bancorp | 98 | 1,654 | ||||||
UCBH Holdings, Inc. | 240 | 1,651 | ||||||
Cash America International, Inc. | 60 | 1,641 | ||||||
WesBanco, Inc. | 60 | 1,633 | ||||||
Delphi Financial Group,Inc. — Class A | 88 | 1,623 | ||||||
Interactive Brokers Group, Inc. — Class A* | 90 | 1,610 | ||||||
Community Bank System, Inc. | 66 | 1,610 | ||||||
SVB Financial Group* | 60 | 1,574 | ||||||
Inland Real Estate Corp. | 120 | 1,558 | ||||||
Equity Lifestyle Properties, Inc. | 40 | 1,534 | ||||||
TrustCo Bank Corp. | 160 | 1,522 | ||||||
PHH Corp.* | 118 | 1,502 | ||||||
Pinnacle Financial Partners, Inc.* | 50 | 1,490 | ||||||
Post Properties, Inc. | 90 | 1,485 | ||||||
Navigators Group, Inc.* | 27 | 1,483 | ||||||
Piper Jaffray Companies, Inc.* | 37 | 1,471 | ||||||
IBERIABANK Corp. | 30 | 1,440 | ||||||
United Fire & Casualty Co. | 46 | 1,429 | ||||||
Infinity Property & Casualty Corp. | 30 | 1,402 | ||||||
Chemical Financial Corp. | 50 | 1,394 | ||||||
KBW, Inc.* | 60 | 1,380 | ||||||
National Health Investors, Inc. | 50 | 1,371 | ||||||
PacWest Bancorp | 50 | 1,345 | ||||||
PS Business Parks, Inc. | 30 | 1,340 | ||||||
Assured Guaranty Ltd. | 117 | 1,334 | ||||||
Ares Capital Corp. | 210 | 1,329 | ||||||
Park National Corp. | 18 | 1,291 | ||||||
Investors Real Estate Trust | 120 | 1,285 | ||||||
Capstead Mortgage Corp. | 116 | 1,249 |
54 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Brookline Bancorp, Inc. | 116 | $ | 1,235 | |||||
Cousins Properties, Inc. | 89 | 1,233 | ||||||
United Community Banks, Inc. | 91 | 1,232 | ||||||
Ezcorp, Inc. — Class A* | 80 | 1,217 | ||||||
Investors Bancorp, Inc.* | 90 | 1,209 | ||||||
Equity One, Inc. | 68 | 1,204 | ||||||
optionsXpress Holdings, Inc. | 90 | 1,202 | ||||||
Financial Federal Corp. | 50 | 1,163 | ||||||
Anworth Mortgage Asset Corp. | 180 | 1,157 | ||||||
Safety Insurance Group, Inc. | 30 | 1,142 | ||||||
Bank Mutual Corp. | 98 | 1,131 | ||||||
Tower Group, Inc. | 40 | 1,128 | ||||||
Community Trust Bancorp, Inc. | 30 | 1,102 | ||||||
Provident New York Bancorp | 88 | 1,091 | ||||||
Capital Southwest Corp. | 10 | 1,082 | ||||||
Berkshire Hills Bancorp, Inc. | 35 | 1,080 | ||||||
Bancfirst Corp. | 20 | 1,058 | ||||||
Redwood Trust, Inc. | 70 | 1,044 | ||||||
Harleysville Group, Inc. | 30 | 1,042 | ||||||
Wintrust Financial Corp. | 50 | 1,028 | ||||||
Portfolio Recovery Associates, Inc.* | 30 | 1,015 | ||||||
LTC Properties, Inc. | 50 | 1,014 | ||||||
DiamondRock Hospitality Co. | 199 | 1,009 | ||||||
City Holding Co. | 29 | 1,009 | ||||||
Acadia Realty Trust | 70 | 999 | ||||||
TowneBank | 40 | 992 | ||||||
First Financial Bancorp | 80 | 991 | ||||||
Hilltop Holdings, Inc.* | 100 | 974 | ||||||
Sterling Bancshares, Inc. | 160 | 973 | ||||||
LaSalle Hotel Properties | 88 | 972 | ||||||
Univest Corp. of Pennsylvania | 30 | 964 | ||||||
American Physicians Capital, Inc. | 20 | 962 | ||||||
Harleysville National Corp. | 66 | 953 | ||||||
Stewart Information Services Corp. | 40 | 940 | ||||||
Sterling Savings Bank | 106 | 933 | ||||||
Universal Health Realty Income Trust | 28 | 921 | ||||||
First Busey Corp. | 50 | 912 | ||||||
SWS Group, Inc. | 48 | 910 | ||||||
State Auto Financial Corp. | 30 | 902 | ||||||
Castlepoint Holdings Ltd. | 66 | 895 | ||||||
Bank of the Ozarks, Inc. | 30 | 889 | ||||||
First Merchants Corp. | 40 | 888 | ||||||
Simmons First National Corp. | 30 | 884 | ||||||
Colonial BancGroup, Inc. | 426 | 882 | ||||||
FPIC Insurance Group, Inc.* | 20 | 876 | ||||||
Banco Latinoamericano de Exportaciones SA | 60 | 862 | ||||||
Medical Properties Trust Inc. | 136 | 858 | ||||||
Northwest Bancorp, Inc. | 40 | 855 | ||||||
StellarOne Corp. | 50 | 845 | ||||||
Getty Realty Corp. | 40 | 842 | ||||||
American Equity Investment Life Holding Co. | 120 | 840 | ||||||
Colonial Properties Trust | 100 | 833 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Horace Mann Educators Corp. | 90 | $ | 827 | |||||
SY Bancorp, Inc. | 30 | 825 | ||||||
Boston Private Financial Holdings, Inc. | 120 | 821 | ||||||
First Financial Corp. | 20 | 820 | ||||||
Capital City Bank Group, Inc. | 30 | 817 | ||||||
Home Bancshares, Inc. | 30 | 808 | ||||||
Citizens Banking Corp. | 271 | 808 | ||||||
Pico Holdings, Inc.* | 30 | 797 | ||||||
Saul Centers, Inc. | 20 | 790 | ||||||
Ambac Financial Group, Inc. | 606 | 788 | ||||||
Beneficial Mutual Bancorp, Inc.* | 70 | 787 | ||||||
Independent Bank Corp. | 30 | 785 | ||||||
Phoenix Companies, Inc. | 240 | 785 | ||||||
Greenlight Capital Re Ltd. — Class A* | 60 | 779 | ||||||
Citizens, Inc.* | 80 | 776 | ||||||
Texas Capital Bancshares, Inc.* | 58 | 775 | ||||||
Meadowbrook Insurance Group, Inc. | 120 | 773 | ||||||
First Cash Financial Services, Inc.* | 40 | 762 | ||||||
Forestar Real Estate Group, Inc.* | 80 | 762 | ||||||
Amerisafe, Inc.* | 37 | 760 | ||||||
Triko Bancshares | 30 | 749 | ||||||
Union Bankshares Corp. | 30 | 744 | ||||||
Ocwen Financial Corp.* | 80 | 734 | ||||||
Crawford & Co. — Class B* | 50 | 727 | ||||||
Suffolk Bancorp | 20 | 719 | ||||||
Prospect Capital Corp. | 60 | 718 | ||||||
Lakeland Financial Corp. | 30 | 715 | ||||||
1st Source Corp. | 30 | 709 | ||||||
Southside Bancshares, Inc. | 30 | 705 | ||||||
Westfield Financial, Inc. | 68 | 702 | ||||||
CNA Surety Corp.* | 36 | 691 | ||||||
SCBT Financial Corp. | 20 | 690 | ||||||
Riskmetrics Group, Inc.* | 46 | 685 | ||||||
Sunstone Hotel Investors, Inc. | 110 | 681 | ||||||
First Industrial Realty Trust, Inc. | 89 | 672 | ||||||
Provident Bankshares Corp. | 68 | 657 | ||||||
Sandy Spring Bancorp, Inc. | 30 | 655 | ||||||
Dime Community Bancshares | 49 | 652 | ||||||
South Financial Group, Inc. | 150 | 648 | ||||||
Renasant Corp. | 38 | 647 | ||||||
eHealth, Inc.* | 48 | 637 | ||||||
Urstadt Biddle Properties, Inc. | 40 | 637 | ||||||
Radian Group, Inc. | 170 | 626 | ||||||
thinkorswim Group, Inc.* | 110 | 618 | ||||||
Heartland Financial USA, Inc. | 30 | 618 | ||||||
United Financial Bancorp, Inc. | 40 | 606 | ||||||
Danvers Bancorp, Inc. | 45 | 602 | ||||||
Flushing Financial Corp. | 50 | 598 | ||||||
First Potomac Realty Trust | 64 | 595 | ||||||
World Acceptance Corp.* | 30 | 593 | ||||||
First Community Bancshares, Inc. | 17 | 593 | ||||||
Central Pacific Financial Corp. | 59 | 592 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 55 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Enstar Group* | 10 | $ | 591 | |||||
BancTrust Financial Group, Inc. | 40 | 590 | ||||||
Tompkins Financial Corp. | 10 | 579 | ||||||
MainSource Financial Group, Inc. | 37 | 573 | ||||||
Nelnet, Inc. — Class A | 40 | 573 | ||||||
SeaBright Insurance Holdings, Inc.* | 48 | 564 | ||||||
Compass Diversified Trust | 50 | 562 | ||||||
Hercules Technology Growth Capital, Inc. | 70 | 554 | ||||||
First Bancorp | 30 | 550 | ||||||
MVC Capital, Inc. | 50 | 548 | ||||||
Flagstone Reinsurance Holdings | 56 | 547 | ||||||
Republic Bancorp, Inc. | 20 | 544 | ||||||
Parkway Properties, Inc. | 30 | 540 | ||||||
Lexington Realty Trust | 108 | 540 | ||||||
MarketAxess Holdings, Inc.* | 66 | 539 | ||||||
Cedar Shopping Centers, Inc. | 76 | 538 | ||||||
Sterling Bancorp | 38 | 533 | ||||||
Peapack Gladstone Financial Corp. | 20 | 533 | ||||||
Hatteras Financial Corp. | 20 | 532 | ||||||
Nara Bancorp, Inc. | 54 | 531 | ||||||
ESSA Bancorp, Inc. | 37 | 523 | ||||||
Pennsylvania Real Estate Investment Trust | 70 | 521 | ||||||
Dollar Financial Corp.* | 50 | 515 | ||||||
United America Indemnity Ltd. — Class A* | 40 | 512 | ||||||
Kearny Financial Corp. | 40 | 512 | ||||||
LaBranche & Company, Inc.* | 106 | 508 | ||||||
Oritani Financial Corp.* | 30 | 505 | ||||||
Arrow Financial Corp. | 20 | 503 | ||||||
GFI Group, Inc. | 140 | 496 | ||||||
Tejon Ranch Co. De* | 20 | 495 | ||||||
Presidential Life Corp. | 50 | 494 | ||||||
GAMCO Investors, Inc. — Class A | 18 | 492 | ||||||
West Bancorporation, Inc. | 40 | 490 | ||||||
U-Store-It Trust | 110 | 489 | ||||||
Camden National Corp. | 18 | 486 | ||||||
PMA Capital Corp.* | 68 | 481 | ||||||
WSFS Financial Corp. | 10 | 480 | ||||||
Shore Bancshares, Inc. | 20 | 480 | ||||||
Aircastle Ltd. | 100 | 478 | ||||||
NorthStar Realty Finance Corp. | 120 | 469 | ||||||
First Financial Northwest, Inc. | 50 | 467 | ||||||
FBL Financial Group, Inc. — Class A | 30 | 463 | ||||||
Abington Bancorp, Inc. | 49 | 453 | ||||||
Lakeland Bancorp, Inc. | 40 | 450 | ||||||
Northfield Bancorp, Inc. | 40 | 450 | ||||||
Columbia Banking Systems, Inc. | 37 | 441 | ||||||
Cohen & Steers, Inc. | 40 | 440 | ||||||
TradeStation Group, Inc.* | 68 | 439 | ||||||
Life Partners Holdings, Inc. | 10 | 436 | ||||||
Frontier Financial Corp. | 100 | 436 | ||||||
Kansas City Life Insurance Co. | 10 | 433 |
MARKET | ||||||||
SHARES | VALUE | |||||||
First Mercury Financial Corp.* | 30 | $ | 428 | |||||
Sun Communities, Inc. | 30 | 420 | ||||||
Sierra Bancorp | 20 | 420 | ||||||
NGP Capital Resources Co. | 50 | 418 | ||||||
BankFinancial Corp. | 40 | 408 | ||||||
Green Bankshares, Inc. | 30 | 406 | ||||||
First Financial Holdings, Inc. | 20 | 405 | ||||||
Western Alliance Bancorp, Inc.* | 40 | 404 | ||||||
First Bancorp, Inc. | 20 | 398 | ||||||
Citizens & Northern Corp. | 20 | 395 | ||||||
Washington Trust Bancorp, Inc. | 20 | 395 | ||||||
CoBiz Financial, Inc. | 40 | 390 | ||||||
Southwest Bancorp, Inc. | 30 | 389 | ||||||
Peoples Bancorp, Inc. | 20 | 383 | ||||||
Consolidated-Tomoka Land Co. | 10 | 382 | ||||||
Baldwind & Lyons, Inc. — Class B | 20 | 364 | ||||||
Wilshire Bancorp, Inc. | 40 | 363 | ||||||
American Capital Agency Corp. | 17 | 363 | ||||||
Agree Realty Corp. | 20 | 363 | ||||||
Ameris Bancorp | 30 | 355 | ||||||
Amtrust Financial Services, Inc. | 30 | 348 | ||||||
Old Second Bancorp, Inc. | 30 | 348 | ||||||
Cascade Bancorp. | 50 | 337 | ||||||
Donegal Group, Inc. — Class A | 20 | 335 | ||||||
Oceanfirst Financial Corp. | 20 | 332 | ||||||
The PMI Group, Inc. | 170 | 332 | ||||||
RAIT Financial Trust | 126 | 328 | ||||||
Gladstone Capital Corp. | 40 | 324 | ||||||
Maiden Holdings Ltd. | 100 | 313 | ||||||
Mission West Properties | 40 | 306 | ||||||
Education Realty Trust, Inc. | 58 | 303 | ||||||
Oriental Financial Group | 50 | 303 | ||||||
Hersha Hospitality Trust | 100 | 300 | ||||||
Pacific Continental Corp. | 20 | 299 | ||||||
Calamos Asset Management, Inc. — Class A | 40 | 296 | ||||||
BlackRock Kelso Capital Corp. | 30 | 296 | ||||||
State Bancorp, Inc. | 30 | 292 | ||||||
FBR Capital Markets Corp.* | 60 | 292 | ||||||
Anthracite Capital, Inc. | 130 | 290 | ||||||
Penson Worldwide Company, Inc.* | 38 | 290 | ||||||
ViewPoint Financial Group | 18 | 289 | ||||||
Ashford Hospitality Trust, Inc. | 250 | 288 | ||||||
Financial Institutions, Inc. | 20 | 287 | ||||||
Yadkin Valley Financial Corp. | 20 | 285 | ||||||
Banner Corp. | 30 | 282 | ||||||
Cogdell Spencer, Inc. | 30 | 281 | ||||||
Monmouth Real Estate Investment Corp. — Class A | 40 | 280 | ||||||
Rockville Financial, Inc. | 20 | 279 | ||||||
Enterprise Financial Services Corp. | 18 | 274 | ||||||
Associated Estates Realty Corp. | 30 | 274 | ||||||
Smithtown Bancorp, Inc. | 17 | 273 | ||||||
Centerstate Banks of Florida, Inc. | 16 | 272 | ||||||
NASB Financial, Inc. | 10 | 270 |
56 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Ames National Corp. | 10 | $ | 265 | |||||
Avatar Holdings Inc.* | 10 | 265 | ||||||
American Safety Insurance Holdings Ltd.* | 20 | 264 | ||||||
Strategic Hotels & Resorts, Inc. | 156 | 262 | ||||||
Cardinal Financial Corp. | 46 | 262 | ||||||
EMC Insurance Group, Inc. | 10 | 257 | ||||||
Roma Financial Corp. | 20 | 252 | ||||||
First South Bancorp, Inc. | 20 | 251 | ||||||
Evercore Partners, Inc. — Class A | 20 | 250 | ||||||
Premierwest Bancorp | 37 | 248 | ||||||
Farmers Capital Bank Corp. | 10 | 244 | ||||||
Chimera Investment Corp. | 70 | 242 | ||||||
Pennsylvania Commerce Bancorp, Inc.* | 9 | 240 | ||||||
Sanders Morris Harris Group Inc. | 40 | 240 | ||||||
FelCor Lodging Trust, Inc. | 130 | 239 | ||||||
Clifton Savings Bancorp, Inc. | 20 | 237 | ||||||
Capitol Bancorp, Ltd. | 30 | 234 | ||||||
National Financial Partners Corp. | 76 | 231 | ||||||
Harris & Harris Group, Inc.* | 58 | 229 | ||||||
Medallion Financial Corp. | 30 | 229 | ||||||
Gladstone Investment Corp. | 46 | 226 | ||||||
Heritage Commerce Corp. | 20 | 225 | ||||||
Glimcher Realty Trust | 80 | 225 | ||||||
Sun Bancorp, Inc.* | 30 | 225 | ||||||
Kite Realty Group Trust | 40 | 222 | ||||||
FCStone Group, Inc.* | 50 | 222 | ||||||
Guaranty Bancorp* | 110 | 220 | ||||||
Winthrop Realty Trust | 20 | 217 | ||||||
Encore Capital Group, Inc.* | 30 | 216 | ||||||
Care Investment Trust, Inc. | 27 | 210 | ||||||
Guaranty Financial Group, Inc.* | 80 | 209 | ||||||
United Security Bancshares | 18 | 208 | ||||||
Bryn Mawr Bank Corp. | 10 | 201 | ||||||
NewStar Financial, Inc.* | 50 | 200 | ||||||
Westwood Holdings Group, Inc. | 7 | 199 | ||||||
Seacoast Banking Corporation of Florida | 30 | 198 | ||||||
West Coast Bancorp | 30 | 198 | ||||||
First Marblehead Corp.* | 150 | 194 | ||||||
Resource Capital Corp. | 50 | 192 | ||||||
NYMAGIC, Inc. | 10 | 191 | ||||||
Thomas Weisel Partners Group, Inc.* | 40 | 189 | ||||||
Ramco-Gershenson Properties Trust | 30 | 185 | ||||||
Meridian Interstate Bancorp, Inc.* | 20 | 185 | ||||||
BGC Partners, Inc. — Class A | 66 | 182 | ||||||
National Interstate Corp. | 10 | 179 | ||||||
One Liberty Properties, Inc. | 20 | 176 | ||||||
Advance America Cash Advance Centers, Inc. | 90 | 170 | ||||||
Advanta Corp. | 80 | 167 | ||||||
CapLease, Inc. | 96 | 166 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Hanmi Financial Corp. | 80 | $ | 165 | |||||
Ladenburg Thalmann Financial Services, Inc.* | 227 | 163 | ||||||
City Bank | 30 | 156 | ||||||
CompuCredit Corp.* | 28 | 155 | ||||||
Asset Acceptance Capital Corp.* | 30 | 153 | ||||||
First Place Financial Corp. | 40 | 153 | ||||||
Epoch Holding Corp. | 20 | 152 | ||||||
Fifth Street Finance Corp. | 20 | 151 | ||||||
Kayne Anderson Energy Development Co. | 20 | 150 | ||||||
US Global Investors, Inc. — Class A | 30 | 147 | ||||||
Patriot Capital Funding, Inc. | 40 | 146 | ||||||
Amcore Financial, Inc. | 40 | 145 | ||||||
PennantPark Investment Corp. | 40 | 144 | ||||||
Broadpoint Securities Group, Inc.* | 48 | 143 | ||||||
Credit Acceptance Corp.* | 10 | 137 | ||||||
Capital Trust, Inc. — Class A | 38 | 137 | ||||||
Maui Land & Pineapple Company, Inc.* | 10 | 134 | ||||||
Kohlberg Capital Corp. | 36 | 131 | ||||||
First Acceptance Corp.* | 45 | 131 | ||||||
Thomas Properties Group, Inc. | 50 | 130 | ||||||
Santander BanCorp | 10 | 125 | ||||||
Stratus Properties, Inc.* | 10 | 125 | ||||||
Gramercy Capital Corp. | 90 | 115 | ||||||
Meruelo Maddux Properties, Inc.* | 90 | 112 | ||||||
Maguire Properties, Inc.* | 76 | 111 | ||||||
MCG Capital Corp. | 156 | 111 | ||||||
Anchor BanCorp Wisconsin, Inc. | 40 | 110 | ||||||
Encore Bancshares, Inc.* | 10 | 110 | ||||||
Fox Chase Bancorp, Inc.* | 10 | 110 | ||||||
Home Federal Bancorp, Inc. | 10 | 107 | ||||||
Brooklyn Federal Bancorp, Inc. | 7 | 98 | ||||||
Newcastle Investment Corp. | 110 | 92 | ||||||
Arbor Realty Trust, Inc. | 30 | 89 | ||||||
Hallmark Financial Services, Inc.* | 10 | 88 | ||||||
International Assets Holding Corp.* | 10 | 86 | ||||||
Grubb & Ellis Co. | 69 | 86 | ||||||
Corus Bankshares, Inc. | 76 | 84 | ||||||
Flagstar Bancorp, Inc.* | 106 | 75 | ||||||
Midwest Banc Holdings, Inc. | 50 | 70 | ||||||
Resource America, Inc. — Class A | 17 | 68 | ||||||
Doral Financial Corp.* | 9 | 68 | ||||||
Federal Agricultural Mortgage Corp. | 19 | 67 | ||||||
DuPont Fabros Technology, Inc. | 28 | 58 | ||||||
Primus Guaranty Ltd.* | 50 | 57 | ||||||
United Community Financial Corp. | 61 | 55 | ||||||
Friedman Billings Ramsey Group, Inc. — Class A* | 310 | 53 | ||||||
FirstFed Financial Corp.* | 30 | 53 | ||||||
Integra Bank Corp. | 37 | 51 | ||||||
JER Investors Trust, Inc. | 48 | 45 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 57 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Pzena Investment Management, | ||||||||
Inc. — Class A | 10 | $ | 42 | |||||
Cardtronics, Inc.* | 30 | 39 | ||||||
Independence Holding Co. | 10 | 36 | ||||||
Waterstone Financial, Inc.* | 10 | 34 | ||||||
Ampal American Israel — Class A* | 40 | 23 | ||||||
FX Real Estate and Entertainment, Inc.* | 20 | 3 | ||||||
Total Financials | 364,682 | |||||||
INDUSTRIALS 7.8% | ||||||||
Waste Connections, Inc.* | 171 | 5,398 | ||||||
Watson Wyatt & Company Holdings | 90 | 4,304 | ||||||
Wabtec Corp. | 98 | 3,896 | ||||||
Clarcor, Inc. | 110 | 3,650 | ||||||
Curtiss-Wright Corp. | 105 | 3,506 | ||||||
Teledyne Technologies, Inc.* | 76 | 3,386 | ||||||
Moog, Inc. — Class A* | 90 | 3,291 | ||||||
Acuity Brands, Inc. | 90 | 3,142 | ||||||
EMCOR Group, Inc.* | 140 | 3,140 | ||||||
Granite Construction, Inc. | 70 | 3,075 | ||||||
Tetra Tech, Inc.* | 126 | 3,043 | ||||||
Woodward Governor Co. | 130 | 2,993 | ||||||
UAL Corp.* | 270 | 2,975 | ||||||
Brady Corp. — Class A | 110 | 2,635 | ||||||
JetBlue Airways Corp.* | 370 | 2,627 | ||||||
Regal-Beloit Corp. | 68 | 2,583 | ||||||
Clean Harbors, Inc.* | 40 | 2,538 | ||||||
Energy Conversion Devices, Inc.* | 100 | 2,521 | ||||||
Perini Corp.* | 106 | 2,478 | ||||||
ESCO Technologies, Inc.* | 58 | 2,375 | ||||||
TransDigm Group, Inc.* | 70 | 2,350 | ||||||
Orbital Sciences Corp.* | 120 | 2,344 | ||||||
Alaska Air Group, Inc.* | 80 | 2,340 | ||||||
Huron Consulting Group, Inc.* | 40 | 2,291 | ||||||
SkyWest, Inc. | 120 | 2,232 | ||||||
Simpson Manufacturing Company, Inc. | 80 | 2,221 | ||||||
Actuant Corp. — Class A | 116 | 2,206 | ||||||
Esterline Technologies Corp.* | 58 | 2,198 | ||||||
Genesee & Wyoming, Inc. — Class A* | 70 | 2,135 | ||||||
Nordson Corp. | 66 | 2,131 | ||||||
HUB Group, Inc. — Class A* | 80 | 2,122 | ||||||
Mueller Water Products, Inc. — Class A | 250 | 2,100 | ||||||
GrafTech International Ltd.* | 250 | 2,080 | ||||||
Kaydon Corp. | 58 | 1,992 | ||||||
Mueller Industries, Inc. | 78 | 1,956 | ||||||
Heico Corp. | 50 | 1,942 | ||||||
Briggs & Stratton Corp. | 110 | 1,935 | ||||||
Knight Transportation, Inc. | 120 | 1,934 | ||||||
Watsco, Inc. | 50 | 1,920 | ||||||
Geo Group, Inc.* | 106 | 1,911 | ||||||
Belden, Inc. | 90 | 1,879 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Otter Tail Power Co. | 80 | $ | 1,866 | |||||
US Airways Group, Inc.* | 240 | 1,855 | ||||||
Heartland Express, Inc. | 116 | 1,828 | ||||||
Baldor Electric Co. | 98 | 1,749 | ||||||
ABM Industries, Inc. | 90 | 1,715 | ||||||
Old Dominion Freight Line, Inc.* | 60 | 1,708 | ||||||
Applied Industrial Technologies, Inc. | 90 | 1,703 | ||||||
Triumph Group, Inc. | 40 | 1,698 | ||||||
United Stationers, Inc.* | 50 | 1,675 | ||||||
Deluxe Corp. | 110 | 1,646 | ||||||
Resources Connection, Inc.* | 100 | 1,638 | ||||||
Rollins, Inc. | 90 | 1,627 | ||||||
Navigant Consulting, Inc.* | 100 | 1,587 | ||||||
Mine Safety Appliances Co. | 66 | 1,578 | ||||||
Werner Enterprises, Inc. | 89 | 1,543 | ||||||
Herman Miller, Inc. | 116 | 1,511 | ||||||
MPS Group, Inc.* | 200 | 1,506 | ||||||
Arkansas Best Corp. | 50 | 1,506 | ||||||
Watts Industries, Inc. — Class A | 60 | 1,498 | ||||||
American Science & Engineering, Inc. | 20 | 1,479 | ||||||
Hexcel Corp.* | 200 | 1,478 | ||||||
AAR Corp.* | 80 | 1,473 | ||||||
Allegiant Travel Co.* | 30 | 1,457 | ||||||
Forward Air Corp. | 60 | 1,456 | ||||||
American Superconductor Corp.* | 88 | 1,435 | ||||||
Healthcare Services Group | 90 | 1,434 | ||||||
HNI Corp. | 90 | 1,426 | ||||||
Franklin Electric Company, Inc. | 50 | 1,406 | ||||||
Barnes Group, Inc. | 96 | 1,392 | ||||||
SYKES Enterprises, Inc.* | 70 | 1,338 | ||||||
CoStar Group, Inc.* | 40 | 1,318 | ||||||
Ameron International Corp. | 20 | 1,258 | ||||||
Astec Industries, Inc.* | 40 | 1,253 | ||||||
Beacon Roofing Supply, Inc.* | 88 | 1,221 | ||||||
Ceradyne, Inc.* | 60 | 1,219 | ||||||
K-Tron International, Inc.* | 15 | 1,199 | ||||||
Insituform Technologies, Inc. — Class A* | 60 | 1,181 | ||||||
A.O. Smith Corp. | 40 | 1,181 | ||||||
Korn/Ferry International, Inc.* | 100 | 1,142 | ||||||
Team, Inc.* | 40 | 1,108 | ||||||
Axsys Technologies, Inc.* | 20 | 1,097 | ||||||
AirTran Holdings, Inc.* | 246 | 1,092 | ||||||
Middleby Corp.* | 40 | 1,091 | ||||||
General Maritime Corp. | 100 | 1,080 | ||||||
Universal Forest Products, Inc. | 40 | 1,076 | ||||||
Mcgrath Rentcorp | 50 | 1,068 | ||||||
Circor International, Inc. | 38 | 1,045 | ||||||
Mastec, Inc.* | 90 | 1,042 | ||||||
Administaff, Inc. | 48 | 1,041 | ||||||
RBC Bearings, Inc.* | 50 | 1,014 | ||||||
Mobile Mini, Inc.* | 70 | 1,009 | ||||||
Viad Corp. | 40 | 990 |
58 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Evergreen Solar, Inc.* | 310 | $ | 989 | |||||
Robbins & Myers, Inc. | 60 | 970 | ||||||
Layne Christensen Co.* | 40 | 960 | ||||||
II-VI, Inc.* | 50 | 955 | ||||||
Gorman-Rupp Co. | 30 | 934 | ||||||
Comfort Systems USA, Inc. | 86 | 917 | ||||||
Tredegar Corp. | 50 | 909 | ||||||
Kaman Corp. — Class A | 50 | 907 | ||||||
Exponent, Inc.* | 30 | 902 | ||||||
Knoll, Inc. | 100 | 902 | ||||||
Lindsay Manufacturing Co. | 28 | 890 | ||||||
Force Protection, Inc.* | 146 | 873 | ||||||
Badger Meter, Inc. | 30 | 871 | ||||||
Heidrick & Struggles International, Inc. | 40 | 862 | ||||||
EnPro Industries, Inc.* | 40 | 862 | ||||||
Northwest Pipe Co.* | 20 | 852 | ||||||
TrueBlue, Inc.* | 88 | 842 | ||||||
Griffon Corp.* | 90 | 840 | ||||||
CBIZ, Inc.* | 96 | 830 | ||||||
RSC Holdings, Inc.* | 97 | 826 | ||||||
Cubic Corp. | 30 | 816 | ||||||
G & K Services, Inc. — Class A | 40 | 809 | ||||||
Advisory Board Co.* | 36 | 803 | ||||||
Federal Signal Corp. | 96 | 788 | ||||||
Albany International Corp. — Class A | 60 | 770 | ||||||
DynCorp International, Inc. — Class A* | 50 | 759 | ||||||
Encore Wire Corp. | 40 | 758 | ||||||
AZZ, Inc.* | 30 | 753 | ||||||
Genco Shipping & Trading Ltd. | 50 | 740 | ||||||
Michael Baker Corp.* | 20 | 738 | ||||||
Aerovironment, Inc.* | 20 | 736 | ||||||
ATC Technology Corp.* | 50 | 732 | ||||||
Quanex Building Products Corp. | 78 | 731 | ||||||
GeoEye, Inc.* | 38 | 731 | ||||||
Pacer International, Inc. | 70 | 730 | ||||||
Kelly Services, Inc. — Class A | 56 | 729 | ||||||
Stanley, Inc.* | 20 | 724 | ||||||
Dycom Industries, Inc.* | 88 | 723 | ||||||
Raven Industries, Inc. | 30 | 723 | ||||||
Interline Brands, Inc.* | 68 | 723 | ||||||
Blount International, Inc.* | 76 | 720 | ||||||
School Specialty, Inc.* | 37 | 707 | ||||||
Republic Airways Holdings, Inc.* | 66 | 704 | ||||||
Amerco, Inc.* | 20 | 691 | ||||||
Taser International, Inc.* | 130 | 686 | ||||||
Eagle Bulk Shipping Inc. | 100 | 682 | ||||||
Gibraltar Industries, Inc. | 56 | 669 | ||||||
Atlas Air Worldwide Holdings Company, Inc.* | 35 | 662 | ||||||
EnerSys* | 60 | 660 | ||||||
NCI Building Systems, Inc.* | 40 | 652 | ||||||
Chart Industries, Inc.* | 60 | 638 |
MARKET | ||||||||
SHARES | VALUE | |||||||
AAON, Inc. | 30 | $ | 626 | |||||
LB Foster Co. — Class A* | 20 | 626 | ||||||
Tennant Co. | 40 | 616 | ||||||
Apogee Enterprises, Inc. | 59 | 611 | ||||||
American Ecology Corp. | 30 | 607 | ||||||
Kimball International, Inc. — Class B | 70 | 603 | ||||||
Standex International Corp. | 30 | 595 | ||||||
Ennis Inc. | 49 | 593 | ||||||
FuelCell Energy, Inc.* | 150 | 582 | ||||||
Powell Industries, Inc.* | 20 | 580 | ||||||
Dynamic Materials Corp. | 30 | 579 | ||||||
Titan International, Inc. | 70 | 578 | ||||||
Ener1, Inc.* | 80 | 572 | ||||||
Marten Transport Ltd.* | 30 | 569 | ||||||
Argon ST, Inc.* | 30 | 566 | ||||||
Rush Enterprises, Inc. — Class A* | 66 | 566 | ||||||
Colfax Corp.* | 53 | 551 | ||||||
Columbus McKinnon Corp. — Class A* | 40 | 546 | ||||||
American Reprographics Co.* | 79 | 545 | ||||||
CRA International, Inc.* | 20 | 539 | ||||||
Applied Signal Technology, Inc. | 30 | 538 | ||||||
Kforce, Inc.* | 70 | 538 | ||||||
Orion Marine Group, Inc.* | 53 | 512 | ||||||
Freightcar America, Inc. | 28 | 512 | ||||||
Hawaiian Holdings, Inc.* | 80 | 510 | ||||||
Interface, Inc. — Class A | 110 | 510 | ||||||
Cascade Corp. | 17 | 508 | ||||||
Trex Company, Inc.* | 30 | 494 | ||||||
Aceto Corp. | 49 | 491 | ||||||
Altra Holdings, Inc.* | 60 | 475 | ||||||
Pike Electric Corp.* | 38 | 467 | ||||||
Cenveo, Inc.* | 105 | 467 | ||||||
Preformed Line Products Co. | 10 | 460 | ||||||
Innerworkings, Inc.* | 70 | 459 | ||||||
Insteel Industries, Inc. | 40 | 452 | ||||||
DHT Maritime, Inc. | 80 | 443 | ||||||
Gencorp, Inc.* | 120 | 442 | ||||||
On Assignment, Inc.* | 77 | 437 | ||||||
Ampco-Pittsburgh Corp. | 20 | 434 | ||||||
Furmanite Corp.* | 80 | 431 | ||||||
LaBarge, Inc.* | 30 | 431 | ||||||
Celadon Group, Inc.* | 50 | 427 | ||||||
Fuel Tech, Inc.* | 40 | 424 | ||||||
TAL International Group, Inc. | 30 | 423 | ||||||
Houston Wire & Cable Co. | 45 | 419 | ||||||
Ladish Co., Inc.* | 30 | 416 | ||||||
ACCO Brands Corp.* | 118 | 407 | ||||||
Kadant, Inc.* | 30 | 404 | ||||||
Ultralife Batteries, Inc.* | 30 | 402 | ||||||
Met-Pro Corp. | 30 | 400 | ||||||
VSE Corp. | 10 | 392 | ||||||
American Commercial Lines, Inc.* | 79 | 387 | ||||||
Standard Parking Corp.* | 20 | 387 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 59 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Consolidated Graphics, Inc.* | 17 | $ | 385 | |||||
EnergySolutions, Inc. | 68 | 384 | ||||||
Duff & Phelps Corp. — Class A* | 20 | 382 | ||||||
Teekay Tankers Ltd. | 30 | 381 | ||||||
Sun Hydraulics Corp. | 20 | 377 | ||||||
NACCO Industries, Inc. — Class A | 10 | 374 | ||||||
Cornell Companies, Inc.* | 20 | 372 | ||||||
Sterling Construction Company, Inc.* | 20 | 371 | ||||||
Herley Industries, Inc.* | 30 | 368 | ||||||
American Woodmark Corp. | 20 | 365 | ||||||
Courier Corp. | 20 | 358 | ||||||
3D Systems Corp.* | 45 | 357 | ||||||
Hill International, Inc.* | 50 | 352 | ||||||
CDI Corp. | 27 | 349 | ||||||
YRC Worldwide, Inc.* | 120 | 344 | ||||||
Schawk, Inc. | 30 | 344 | ||||||
LECG Corp.* | 50 | 336 | ||||||
Ducommun, Inc. | 20 | 334 | ||||||
Great Lakes Dredge & Dock Corp. Co. | 80 | 332 | ||||||
Bowne & Company, Inc. | 56 | 329 | ||||||
Waste Services Inc.* | 50 | 329 | ||||||
Saia, Inc.* | 30 | 326 | ||||||
Odyssey Marine Exploration, Inc.* | 100 | 322 | ||||||
Multi-Color Corp. | 20 | 316 | ||||||
Wabash National Corp. | 70 | 315 | ||||||
M&F Worldwide Corp.* | 20 | 309 | ||||||
DXP Enterprises, Inc.* | 20 | 292 | ||||||
Tecumseh Products Co. — Class A* | 30 | 287 | ||||||
First Advantage Corp. — Class A* | 20 | 283 | ||||||
Titan Machinery, Inc.* | 20 | 281 | ||||||
Omega Flex, Inc. | 13 | 272 | ||||||
Standard Register Co. | 30 | 268 | ||||||
Vicor Corp. | 40 | 264 | ||||||
Capstone Turbine Corp.* | 310 | 260 | ||||||
PMFG, Inc.* | 27 | 258 | ||||||
Spherion Corp.* | 116 | 256 | ||||||
LSI Industries, Inc. | 37 | 254 | ||||||
International Shipholding Corp. | 10 | 253 | ||||||
ICF International, Inc.* | 10 | 246 | ||||||
Advanced Battery Technologies, Inc.* | 90 | 239 | ||||||
Dynamex, Inc.* | 16 | 236 | ||||||
TurboChef Technologies, Inc.* | 48 | 236 | ||||||
Microvision, Inc.* | 140 | 235 | ||||||
H&E Equipment Services, Inc.* | 30 | 231 | ||||||
Lydall, Inc.* | 40 | 230 | ||||||
Lawson Products, Inc. | 10 | 229 | ||||||
LMI Aerospace, Inc.* | 20 | 227 | ||||||
Polypore International, Inc.* | 30 | 227 | ||||||
Volt Information Sciences, Inc.* | 30 | 217 | ||||||
Textainer Group Holdings Ltd. | 20 | 212 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Horizon Lines, Inc. — Class A | 60 | $ | 209 | |||||
Thermadyne Holdings Corp.* | 30 | 206 | ||||||
Greenbrier Companies, Inc. | 30 | 206 | ||||||
Casella Waste Systems, Inc. — Class A* | 50 | 204 | ||||||
TBS International Ltd. — Class A* | 20 | 201 | ||||||
Energy Recovery, Inc.* | 26 | 197 | ||||||
Graham Corp. | 18 | 195 | ||||||
Valence Technology, Inc.* | 106 | 193 | ||||||
Power-One, Inc.* | 160 | 190 | ||||||
Key Technology, Inc.* | 10 | 189 | ||||||
Flow International Corp.* | 78 | 189 | ||||||
China Fire & Security Group, Inc.* | 27 | 184 | ||||||
American Railcar Industries, Inc. | 17 | 179 | ||||||
Sauer, Inc. | 20 | 175 | ||||||
Plug Power, Inc.* | 170 | 173 | ||||||
GT Solar International, Inc.* | 57 | 165 | ||||||
Fushi Copperweld, Inc.* | 30 | 158 | ||||||
Integrated Electrical Services, Inc.* | 18 | 158 | ||||||
Hudson Highland Group, Inc.* | 46 | 154 | ||||||
Alamo Group, Inc. | 10 | 150 | ||||||
Ultrapetrol Bahamas Ltd.* | 46 | 147 | ||||||
Harbin Electric, Inc.* | 18 | 144 | ||||||
Universal Truckload Services, Inc.* | 10 | 142 | ||||||
Twin Disc, Inc. | 20 | 138 | ||||||
Flanders Corp.* | 28 | 131 | ||||||
EnerNOC, Inc.* | 17 | 126 | ||||||
PowerSecure International, Inc.* | 38 | 125 | ||||||
Park-Ohio Holdings Corp.* | 20 | 123 | ||||||
PRG-Schultz International, Inc.* | 30 | 122 | ||||||
Hurco Companies, Inc.* | 10 | 120 | ||||||
China BAK Battery, Inc.* | 70 | 113 | ||||||
Beacon Power Corp.* | 213 | 113 | ||||||
Orion Energy Systems Inc.* | 20 | 108 | ||||||
China Architectural Engineering, Inc.* | 40 | 98 | ||||||
Coleman Cable Inc.* | 20 | 91 | ||||||
ICT Group, Inc.* | 17 | 78 | ||||||
Metalico, Inc.* | 48 | 74 | ||||||
NN, Inc. | 30 | 69 | ||||||
Ascent Solar Technologies, Inc.* | 18 | 68 | ||||||
COMSYS IT Partners, Inc.* | 30 | 67 | ||||||
Akeena Solar, Inc.* | 38 | 65 | ||||||
CAI International, Inc.* | 20 | 63 | ||||||
Dollar Thrifty Automotive Group, Inc.* | 50 | 55 | ||||||
Protection One, Inc.* | 10 | 48 | ||||||
Builders FirstSource, Inc.* | 30 | 46 | ||||||
Commercial Vehicle Group, Inc.* | 46 | 43 | ||||||
Trimas Corp.* | 30 | 41 | ||||||
Medis Technologies Ltd.* | 74 | 33 | ||||||
Xerium Technologies, Inc.* | 40 | 26 | ||||||
China Direct, Inc.* | 10 | 15 | ||||||
Total Industrials | 268,051 | |||||||
60 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
INFORMATION TECHNOLOGY 7.3% | ||||||||
Sybase, Inc.* | 170 | $ | 4,211 | |||||
Parametric Technology Corp.* | 250 | 3,162 | ||||||
Jack Henry & Associates, Inc. | 160 | 3,106 | ||||||
Concur Technologies, Inc.* | 90 | 2,954 | ||||||
Micros Systems, Inc.* | 170 | 2,774 | ||||||
CACI International, Inc. — Class A* | 60 | 2,705 | ||||||
InterDigital, Inc.* | 98 | 2,695 | ||||||
Solera Holdings, Inc.* | 110 | 2,651 | ||||||
Informatica Corp.* | 190 | 2,609 | ||||||
Polycom, Inc.* | 190 | 2,567 | ||||||
Perot Systems Corp. — Class A* | 180 | 2,461 | ||||||
Comtech Telecommunications Corp.* | 50 | 2,291 | ||||||
PMC — Sierra, Inc.* | 470 | 2,284 | ||||||
Macrovision Solutions Corp.* | 180 | 2,277 | ||||||
Gartner, Inc. — Class A* | 126 | 2,247 | ||||||
Mantech International Corp. — Class A* | 40 | 2,168 | ||||||
Microsemi Corp.* | 170 | 2,149 | ||||||
TIBCO Software, Inc.* | 400 | 2,076 | ||||||
Arris Group, Inc.* | 260 | 2,067 | ||||||
3Com Corp.* | 860 | 1,961 | ||||||
Skyworks Solutions, Inc.* | 350 | 1,939 | ||||||
Digital River, Inc.* | 78 | 1,934 | ||||||
Quest Software, Inc.* | 150 | 1,888 | ||||||
Tekelec* | 140 | 1,868 | ||||||
j2 Global Communications, Inc.* | 90 | 1,804 | ||||||
Atheros Communications, Inc.* | 126 | 1,803 | ||||||
Infinera Corp.* | 200 | 1,792 | ||||||
Benchmark Electronics, Inc.* | 140 | 1,788 | ||||||
Cybersource Corp.* | 148 | 1,775 | ||||||
Quality Systems, Inc. | 40 | 1,745 | ||||||
Progress Software Corp.* | 90 | 1,733 | ||||||
Blackboard, Inc.* | 66 | 1,731 | ||||||
Intermec, Inc.* | 130 | 1,726 | ||||||
ADTRAN, Inc. | 116 | 1,726 | ||||||
Avocent Corp.* | 96 | 1,719 | ||||||
Anixter International, Inc.* | 57 | 1,717 | ||||||
Fair Isaac Corp. | 100 | 1,686 | ||||||
VistaPrint Ltd.* | 90 | 1,675 | ||||||
MKS Instruments, Inc.* | 110 | 1,627 | ||||||
TiVo, Inc.* | 216 | 1,547 | ||||||
SRA International, Inc. — Class A* | 89 | 1,535 | ||||||
EarthLink, Inc.* | 227 | 1,535 | ||||||
FEI Co.* | 79 | 1,490 | ||||||
Websense, Inc.* | 98 | 1,467 | ||||||
Semtech Corp.* | 130 | 1,465 | ||||||
Formfactor, Inc.* | 100 | 1,460 | ||||||
MAXIMUS, Inc. | 40 | 1,404 | ||||||
Net 1 UEPS Technologies, Inc.* | 100 | 1,370 | ||||||
Plexus Corp.* | 80 | 1,356 | ||||||
Wind River Systems, Inc.* | 150 | 1,354 | ||||||
Blackbaud, Inc. | 100 | 1,350 | ||||||
Omniture, Inc.* | 126 | 1,341 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Cognex Corp. | 90 | $ | 1,332 | |||||
Bankrate, Inc.* | 35 | 1,330 | ||||||
Riverbed Technology, Inc.* | 116 | 1,321 | ||||||
Plantronics, Inc. | 100 | 1,320 | ||||||
Data Domain, Inc.* | 70 | 1,316 | ||||||
Cymer, Inc.* | 60 | 1,315 | ||||||
Ariba, Inc.* | 180 | 1,298 | ||||||
EPIQ Systems, Inc.* | 76 | 1,270 | ||||||
Interwoven, Inc.* | 100 | 1,260 | ||||||
Emulex Corp.* | 180 | 1,256 | ||||||
Rofin-Sinar Technologies, Inc.* | 60 | 1,235 | ||||||
ValueClick, Inc.* | 180 | 1,231 | ||||||
CSG Systems International, Inc.* | 70 | 1,223 | ||||||
Cogent, Inc.* | 90 | 1,221 | ||||||
SPSS, Inc.* | 45 | 1,213 | ||||||
ViaSat, Inc.* | 50 | 1,204 | ||||||
Cabot Microelectronics Corp.* | 46 | 1,199 | ||||||
Power Integrations, Inc. | 60 | 1,193 | ||||||
Commvault Systems, Inc.* | 88 | 1,180 | ||||||
Take-Two Interactive Software, Inc. | 156 | 1,179 | ||||||
Hittite Microwave Corp.* | 40 | 1,178 | ||||||
Lawson Software, Inc.* | 246 | 1,166 | ||||||
Tessera Technologies, Inc.* | 98 | 1,164 | ||||||
Euronet Worldwide, Inc.* | 100 | 1,161 | ||||||
Scansource, Inc.* | 60 | 1,156 | ||||||
Harmonic, Inc.* | 200 | 1,122 | ||||||
ACI Worldwide, Inc.* | 70 | 1,113 | ||||||
Rogers Corp.* | 40 | 1,111 | ||||||
Synaptics, Inc.* | 67 | 1,110 | ||||||
Sycamore Networks, Inc.* | 410 | 1,103 | ||||||
Coherent, Inc.* | 50 | 1,073 | ||||||
DealerTrack Holdings, Inc.* | 90 | 1,070 | ||||||
Triquint Semiconductor, Inc.* | 310 | 1,066 | ||||||
MTS Systems Corp. | 40 | 1,066 | ||||||
Acxiom Corp. | 130 | 1,054 | ||||||
ATMI, Inc.* | 68 | 1,049 | ||||||
Black Box Corp. | 40 | 1,045 | ||||||
Electronics for Imaging, Inc.* | 108 | 1,032 | ||||||
Wright Express Corp.* | 80 | 1,008 | ||||||
Mentor Graphics Corp.* | 190 | 982 | ||||||
United Online, Inc. | 160 | 971 | ||||||
L-1 Identity Solutions, Inc.* | 136 | 917 | ||||||
Tyler Technologies, Inc.* | 76 | 910 | ||||||
Netlogic Microsystems, Inc.* | 40 | 880 | ||||||
Heartland Payment Systems, Inc. | 50 | 875 | ||||||
S1 Corp.* | 110 | 868 | ||||||
Netgear, Inc.* | 76 | 867 | ||||||
Adaptec, Inc.* | 257 | 848 | ||||||
Sapient Corp.* | 190 | 844 | ||||||
Littelfuse, Inc.* | 50 | 830 | ||||||
AsiaInfo Holdings, Inc.* | 70 | 829 | ||||||
DTS, Inc. — Class A* | 45 | 826 | ||||||
MercadoLibre, Inc.* | 50 | 820 | ||||||
Forrester Research, Inc.* | 29 | 818 | ||||||
Standard Microsystems Corp.* | 50 | 817 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 61 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Imation Corp. | 60 | $ | 814 | |||||
Brooks Automation, Inc.* | 140 | 813 | ||||||
Manhattan Associates, Inc.* | 50 | 790 | ||||||
Micrel, Inc. | 108 | 789 | ||||||
Checkpoint Systems, Inc.* | 80 | 787 | ||||||
EMS Technologies, Inc.* | 30 | 776 | ||||||
Park Electrochemical Corp. | 40 | 758 | ||||||
Monolithic Power Systems, Inc.* | 60 | 757 | ||||||
VeriFone Holdings, Inc.* | 150 | 735 | ||||||
Ultimate Software Group, Inc.* | 50 | 730 | ||||||
Zoran Corp.* | 106 | 724 | ||||||
Advent Software, Inc.* | 36 | 719 | ||||||
Starent Networks Corp.* | 60 | 716 | ||||||
Palm, Inc.* | 230 | 706 | ||||||
Syntel, Inc. | 30 | 694 | ||||||
Insight Enterprises, Inc.* | 100 | 690 | ||||||
Sonus Networks, Inc.* | 430 | 679 | ||||||
Advanced Energy Industries, Inc.* | 68 | 677 | ||||||
Silicon Image, Inc.* | 160 | 672 | ||||||
RealNetworks, Inc.* | 190 | 671 | ||||||
MSC.Software Corp.* | 100 | 668 | ||||||
Teletech Holdings, Inc.* | 80 | 668 | ||||||
JDA Software Group, Inc.* | 50 | 656 | ||||||
Daktronics, Inc. | 70 | 655 | ||||||
MicroStrategy, Inc. — Class A* | 17 | 631 | ||||||
Cavium Networks, Inc.* | 60 | 631 | ||||||
Electro Rent Corp. | 55 | 614 | ||||||
Avid Technology, Inc.* | 56 | 611 | ||||||
Cohu, Inc. | 50 | 607 | ||||||
Faro Technologies, Inc.* | 36 | 607 | ||||||
Epicor Software Corp.* | 126 | 605 | ||||||
Ultratech, Inc.* | 50 | 598 | ||||||
Bel Fuse, Inc. — Class B | 28 | 594 | ||||||
THQ, Inc.* | 140 | 587 | ||||||
Actel Corp.* | 50 | 586 | ||||||
Neutral Tandem, Inc.* | 36 | 584 | ||||||
Vasco Data Security International* | 56 | 578 | ||||||
Blue Coat Systems, Inc.* | 68 | 571 | ||||||
Universal Display Corp.* | 60 | 567 | ||||||
TeleCommunication Systems, Inc. — Class A* | 66 | 567 | ||||||
OmniVision Technologies, Inc.* | 106 | 556 | ||||||
Applied Micro Circuits Corp.* | 140 | 550 | ||||||
Transmeta Corp.* | 30 | 546 | ||||||
Newport Corp.* | 80 | 542 | ||||||
SAVVIS, Inc.* | 78 | 537 | ||||||
Exar Corp.* | 80 | 534 | ||||||
Seachange International, Inc.* | 74 | 534 | ||||||
Synchronoss Technologies, Inc.* | 50 | 533 | ||||||
Sigma Designs, Inc.* | 56 | 532 | ||||||
Sanmina-SCI Corp.* | 1,130 | 531 | ||||||
Constant Contact, Inc.* | 40 | 530 | ||||||
Ciber, Inc.* | 110 | 529 | ||||||
InfoSpace, Inc. | 70 | 528 |
MARKET | ||||||||
SHARES | VALUE | |||||||
IPG Photonics Corp.* | 40 | $ | 527 | |||||
GSI Commerce, Inc.* | 50 | 526 | ||||||
Entegris, Inc.* | 240 | 526 | ||||||
DG FastChannel, Inc.* | 42 | 524 | ||||||
Art Technology Group, Inc.* | 270 | 521 | ||||||
Ixia* | 90 | 520 | ||||||
Netscout Systems, Inc.* | 60 | 517 | ||||||
Methode Electronics, Inc. — Class A | 76 | 512 | ||||||
Vocus, Inc.* | 28 | 510 | ||||||
Netezza Corp.* | 76 | 505 | ||||||
Amkor Technology, Inc.* | 230 | 501 | ||||||
The Knot, Inc.* | 60 | 499 | ||||||
comScore, Inc.* | 39 | 497 | ||||||
Integral Systems, Inc.* | 40 | 482 | ||||||
Supertex, Inc.* | 20 | 480 | ||||||
Echelon Corp.* | 58 | 473 | ||||||
Vignette Corp.* | 50 | 470 | ||||||
Brightpoint, Inc.* | 108 | 470 | ||||||
TNS, Inc.* | 50 | 469 | ||||||
TTM Technologies, Inc.* | 90 | 469 | ||||||
RightNow Technologies, Inc.* | 60 | 464 | ||||||
Taleo Corp.* | 59 | 462 | ||||||
SYNNEX Corp.* | 40 | 453 | ||||||
Extreme Networks, Inc.* | 190 | 445 | ||||||
Utstarcom, Inc.* | 240 | 444 | ||||||
Veeco Instruments, Inc.* | 70 | 444 | ||||||
3PAR, Inc.* | 58 | 443 | ||||||
SonicWALL, Inc.* | 110 | 438 | ||||||
RF Micro Devices, Inc.* | 560 | 437 | ||||||
Internet Capital Group, Inc.* | 80 | 436 | ||||||
Move, Inc.* | 270 | 432 | ||||||
Stratasys, Inc.* | 40 | 430 | ||||||
Terremark Worldwide, Inc.* | 110 | 428 | ||||||
OSI SYSTEMS INC* | 30 | 415 | ||||||
IXYS Corp. | 50 | 413 | ||||||
Immersion Corp.* | 70 | 412 | ||||||
Silicon Storage Technology, Inc.* | 180 | 412 | ||||||
LoopNet, Inc.* | 60 | 409 | ||||||
Electro Scientific Industries, Inc.* | 60 | 407 | ||||||
Digi International, Inc.* | 50 | 405 | ||||||
ShoreTel, Inc.* | 90 | 404 | ||||||
DSP Group, Inc.* | 50 | 401 | ||||||
Kenexa Corp. — Class A* | 50 | 399 | ||||||
Symyx Technologies, Inc.* | 66 | 392 | ||||||
Symmetricom, Inc.* | 98 | 387 | ||||||
BigBand Networks, Inc.* | 70 | 386 | ||||||
Actuate Corp.* | 130 | 385 | ||||||
Lattice Semiconductor Corp.* | 250 | 377 | ||||||
Pegasystems, Inc. | 30 | 371 | ||||||
NIC, Inc. | 80 | 368 | ||||||
Cirrus Logic, Inc.* | 137 | 367 | ||||||
CTS Corp. | 66 | 364 | ||||||
Diodes, Inc.* | 60 | 364 |
62 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Anaren, Inc.* | 30 | $ | 358 | |||||
Volterra Semiconductor Corp.* | 50 | 357 | ||||||
Bottomline Technologies, Inc.* | 50 | 355 | ||||||
Oplink Communications, Inc.* | 40 | 344 | ||||||
Ness Technologies, Inc.* | 80 | 342 | ||||||
Mercury Computer Systems, Inc.* | 54 | 341 | ||||||
Perficient, Inc.* | 70 | 335 | ||||||
Smith Micro Software, Inc.* | 60 | 334 | ||||||
infoGROUP, Inc. | 70 | 332 | ||||||
iGate Corp.* | 50 | 325 | ||||||
Double-Take Software, Inc.* | 36 | 323 | ||||||
DemandTec, Inc.* | 40 | 323 | ||||||
Hughes Communications, Inc.* | 20 | 319 | ||||||
Finisar Corp.* | 836 | 318 | ||||||
Super Micro Computer, Inc.* | 50 | 317 | ||||||
Acme Packet, Inc.* | 60 | 316 | ||||||
Novatel Wireless, Inc.* | 68 | 316 | ||||||
STEC, Inc.* | 74 | 315 | ||||||
DivX, Inc.* | 60 | 314 | ||||||
Airvana, Inc.* | 50 | 306 | ||||||
Kopin Corp.* | 150 | 306 | ||||||
Cass Information Systems, Inc. | 10 | 305 | ||||||
Advanced Analogic Technologies, Inc.* | 100 | 302 | ||||||
NCI, Inc.* | 10 | 301 | ||||||
Technitrol, Inc. | 86 | 299 | ||||||
Switch & Data Facilities Company, Inc.* | 40 | 296 | ||||||
Marchex, Inc. | 50 | 292 | ||||||
Internet Brands, Inc. — Class A* | 50 | 291 | ||||||
Loral Space & Communications, Inc.* | 20 | 291 | ||||||
ModusLink Global Solutions, Inc.* | 100 | 289 | ||||||
SuccessFactors, Inc.* | 50 | 287 | ||||||
Online Resources Corp.* | 60 | 284 | ||||||
Compellent Technologies, Inc.* | 29 | 282 | ||||||
Aruba Networks, Inc.* | 110 | 281 | ||||||
Ceva, Inc.* | 40 | 280 | ||||||
Radisys Corp.* | 50 | 277 | ||||||
Internap Network Services Corp.* | 110 | 275 | ||||||
Pericom Semiconductor Corp.* | 50 | 274 | ||||||
Rimage Corp.* | 20 | 268 | ||||||
Opnet Technologies, Inc.* | 27 | 266 | ||||||
Hackett Group, Inc.* | 90 | 263 | ||||||
PC-Tel, Inc. | 40 | 263 | ||||||
China Security & Surveillance Technology, Inc.* | 59 | 261 | ||||||
NVE Corp.* | 10 | 261 | ||||||
Harris Stratex Networks, Inc. — Class A* | 50 | 258 | ||||||
ExlService Holdings, Inc.* | 30 | 257 | ||||||
Gerber Scientific, Inc.* | 50 | 256 | ||||||
MRV Communications, Inc.* | 330 | 254 | ||||||
Intevac, Inc.* | 50 | 254 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Liquidity Services Inc.* | 30 | $ | 250 | |||||
Rudolph Technologies, Inc.* | 70 | 247 | ||||||
Trident Microsystems, Inc.* | 130 | 246 | ||||||
Comverge, Inc.* | 50 | 245 | ||||||
Microtune, Inc.* | 120 | 245 | ||||||
Cogo Group, Inc.* | 50 | 243 | ||||||
ICx Technologies, Inc.* | 30 | 237 | ||||||
Rackable Systems, Inc.* | 60 | 236 | ||||||
American Software, Inc. — Class A | 50 | 235 | ||||||
Multi-Fineline Electronix, Inc.* | 20 | 234 | ||||||
Rackspace Hosting* | 43 | 231 | ||||||
Keynote Systems, Inc.* | 30 | 231 | ||||||
Sourcefire, Inc.* | 40 | 224 | ||||||
OpenTV Corp.* | 180 | 221 | ||||||
Globecomm Systems, Inc.* | 40 | 220 | ||||||
Web.com Group, Inc.* | 60 | 220 | ||||||
SupportSoft, Inc.* | 98 | 219 | ||||||
Agilysys, Inc. | 50 | 215 | ||||||
FalconStor Software, Inc.* | 76 | 211 | ||||||
Phoenix Technologies, Ltd.* | 60 | 210 | ||||||
Measurement Specialties, Inc.* | 30 | 209 | ||||||
Emcore Corp.* | 160 | 208 | ||||||
Zygo Corp., Inc.* | 30 | 207 | ||||||
Entrust, Inc.* | 130 | 205 | ||||||
Maxwell Technologies, Inc.* | 40 | 203 | ||||||
Radiant Systems, Inc.* | 60 | 202 | ||||||
Global Cash Access Holdings, Inc.* | 88 | 195 | ||||||
Techwell, Inc.* | 30 | 195 | ||||||
Presstek, Inc.* | 60 | 193 | ||||||
Interactive Intelligence, Inc.* | 30 | 192 | ||||||
i2 Technologies, Inc.* | 30 | 192 | ||||||
Kulicke & Soffa Industries, Inc.* | 110 | 187 | ||||||
Anadigics, Inc.* | 126 | 186 | ||||||
China Information Security Technology, Inc.* | 50 | 180 | ||||||
Renaissance Learning, Inc. | 20 | 180 | ||||||
Safeguard Scientifics, Inc.* | 260 | 179 | ||||||
Photronics, Inc.* | 90 | 176 | ||||||
Monotype Imaging Holdings, Inc.* | 30 | 174 | ||||||
CPI International, Inc.* | 20 | 173 | ||||||
PROS Holdings, Inc.* | 30 | 173 | ||||||
NetSuite, Inc.* | 20 | 169 | ||||||
Callidus Software, Inc.* | 56 | 167 | ||||||
Ebix, Inc.* | 7 | 167 | ||||||
Hutchinson Technology, Inc.* | 48 | 167 | ||||||
Isilon Systems, Inc.* | 50 | 165 | ||||||
Unica Corp.* | 30 | 164 | ||||||
SiRF Technology Holdings, Inc.* | 126 | 161 | ||||||
Chordiant Software, Inc.* | 60 | 160 | ||||||
Quantum Corp.* | 440 | 158 | ||||||
Mattson Technology, Inc.* | 110 | 155 | ||||||
Semitool, Inc.* | 50 | 153 | ||||||
Orbcomm, Inc.* | 70 | 151 | ||||||
Limelight Networks Inc.* | 60 | 147 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 63 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Cray, Inc.* | 70 | $ | 146 | |||||
Powerwave Technologies, Inc.* | 280 | 140 | ||||||
Deltek, Inc.* | 30 | 139 | ||||||
Smart Modular Technologies WWH, Inc.* | 88 | 136 | ||||||
TechTarget, Inc.* | 30 | 130 | ||||||
QAD, Inc. | 30 | 126 | ||||||
Dice Holdings, Inc.* | 30 | 122 | ||||||
Hypercom Corp.* | 110 | 119 | ||||||
TheStreet.com, Inc. | 40 | 116 | ||||||
Rubicon Technology, Inc.* | 27 | 115 | ||||||
Parkervision, Inc.* | 46 | 114 | ||||||
Virtusa Corp.* | 20 | 113 | ||||||
Axcelis Technologies, Inc.* | 220 | 112 | ||||||
PC Connection, Inc.* | 20 | 102 | ||||||
Digimarc Corp.* | 10 | 100 | ||||||
PLX Technology, Inc.* | 58 | 100 | ||||||
MIPS Technology, Inc.* | 88 | 98 | ||||||
Bookham, Inc.* | 210 | 95 | ||||||
AuthenTec, Inc.* | 55 | 92 | ||||||
Magma Design Automation, Inc.* | 90 | 92 | ||||||
Sonic Solutions, Inc.* | 50 | 88 | ||||||
Ultra Clean Holdings* | 40 | 80 | ||||||
ArcSight, Inc.* | 10 | 80 | ||||||
Gevity HR, Inc. | 50 | 76 | ||||||
Guidance Software, Inc.* | 18 | 73 | ||||||
LTX-Credence Corp.* | 270 | 73 | ||||||
PC Mall, Inc.* | 18 | 72 | ||||||
Opnext, Inc.* | 40 | 70 | ||||||
Spansion, Inc.* | 266 | 50 | ||||||
KEMET Corp.* | 180 | 49 | ||||||
Avanex Corp.* | 30 | 32 | ||||||
Asyst Technologies, Inc.* | 110 | 28 | ||||||
HSW International, Inc.* | 60 | 23 | ||||||
Elixir Gaming Technologies, Inc.* | 136 | 18 | ||||||
Nextwave Wireless, Inc.* | 100 | 9 | ||||||
Entropic Communications, Inc.* | 16 | 8 | ||||||
Midway Games, Inc.* | 20 | 4 | ||||||
Total Information Technology | 249,382 | |||||||
HEALTH CARE 7.0% | ||||||||
Myriad Genetics, Inc.* | 100 | 6,626 | ||||||
Alexion Pharmaceuticals, Inc.* | 156 | 5,646 | ||||||
OSI Pharmaceuticals, Inc.* | 120 | 4,686 | ||||||
Onyx Pharmaceuticals, Inc.* | 120 | 4,099 | ||||||
Immucor, Inc.* | 150 | 3,987 | ||||||
Thoratec Corp.* | 120 | 3,899 | ||||||
Magellan Health Services, Inc.* | 90 | 3,524 | ||||||
Valeant Pharmaceuticals International* | 148 | 3,389 | ||||||
Owens & Minor, Inc. | 90 | 3,388 | ||||||
AMERIGROUP Corp.* | 110 | 3,247 | ||||||
Psychiatric Solutions, Inc.* | 116 | 3,231 | ||||||
United Therapeutics Corp.* | 50 | 3,127 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Bio-Rad Laboratories, Inc. — Class A* | 39 | $ | 2,937 | |||||
Masimo Corp.* | 98 | 2,923 | ||||||
Steris Corp. | 120 | 2,867 | ||||||
Haemonetics Corp.* | 50 | 2,825 | ||||||
Cubist Pharmaceuticals, Inc.* | 116 | 2,803 | ||||||
Isis Pharmaceuticals, Inc.* | 188 | 2,666 | ||||||
NuVasive, Inc.* | 76 | 2,633 | ||||||
West Pharmaceutical Services, Inc. | 68 | 2,568 | ||||||
Auxilium Pharmaceuticals, Inc.* | 90 | 2,560 | ||||||
PSS World Medical, Inc.* | 134 | 2,522 | ||||||
Sequenom, Inc.* | 120 | 2,381 | ||||||
Amedisys, Inc.* | 56 | 2,315 | ||||||
Regeneron Pharmaceuticals, Inc.* | 126 | 2,313 | ||||||
Meridian Bioscience, Inc. | 88 | 2,241 | ||||||
Healthspring, Inc.* | 110 | 2,197 | ||||||
Mentor Corp. | 70 | 2,165 | ||||||
Alkermes, Inc.* | 200 | 2,130 | ||||||
Martek Biosciences Corp. | 70 | 2,122 | ||||||
Healthsouth Corp.* | 190 | 2,082 | ||||||
Varian, Inc.* | 60 | 2,011 | ||||||
Chemed Corp. | 50 | 1,988 | ||||||
Viropharma, Inc.* | 150 | 1,953 | ||||||
Luminex Corp.* | 90 | 1,922 | ||||||
Celera Corp.* | 170 | 1,892 | ||||||
Alnylam Pharmaceuticals, Inc.* | 76 | 1,879 | ||||||
Dionex Corp.* | 40 | 1,794 | ||||||
Centene Corp.* | 90 | 1,774 | ||||||
Catalyst Health Solutions, Inc.* | 70 | 1,704 | ||||||
Eclipsys Corp.* | 120 | 1,703 | ||||||
Acorda Therapeutics, Inc.* | 80 | 1,641 | ||||||
AmSurg Corp.* | 70 | 1,634 | ||||||
Medicis Pharmaceutical Corp. — | ||||||||
Class A | 116 | 1,612 | ||||||
Integra LifeSciences | ||||||||
Holdings Corp.* | 45 | 1,601 | ||||||
Wright Medical Group, Inc.* | 78 | 1,594 | ||||||
Medicines Co.* | 106 | 1,561 | ||||||
PDL BioPharma, Inc. | 250 | 1,545 | ||||||
athenahealth, Inc.* | 40 | 1,505 | ||||||
Medarex, Inc.* | 266 | 1,484 | ||||||
Gentiva Health Services, Inc.* | 50 | 1,463 | ||||||
Volcano Corp.* | 97 | 1,455 | ||||||
HMS Holdings Corp.* | 46 | 1,450 | ||||||
Conmed Corp.* | 60 | 1,436 | ||||||
Datascope Corp. | 27 | 1,410 | ||||||
AMAG Pharmaceuticals, Inc.* | 38 | 1,362 | ||||||
American Medical Systems | ||||||||
Holdings, Inc.* | 150 | 1,348 | ||||||
Greatbatch, Inc.* | 50 | 1,323 | ||||||
Landauer, Inc. | 18 | 1,319 | ||||||
Theravance, Inc.* | 106 | 1,313 | ||||||
XenoPort, Inc.* | 50 | 1,254 | ||||||
Cepheid, Inc.* | 120 | 1,246 |
64 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CV Therapeutics, Inc.* | 130 | $ | 1,197 | |||||
Allscripts Healthcare Solutions, Inc. | 120 | 1,190 | ||||||
Parexel International Corp.* | 120 | 1,165 | ||||||
Seattle Genetics, Inc.* | 126 | 1,126 | ||||||
Questcor Pharmaceuticals, Inc.* | 120 | 1,117 | ||||||
Nektar Therapeutics* | 200 | 1,112 | ||||||
Exelixis, Inc.* | 220 | 1,104 | ||||||
Align Technology, Inc.* | 126 | 1,102 | ||||||
Phase Forward, Inc.* | 88 | 1,102 | ||||||
Abiomed, Inc.* | 66 | 1,084 | ||||||
LHC Group, Inc.* | 30 | 1,080 | ||||||
Merit Medical Systems, Inc.* | 60 | 1,076 | ||||||
Hanger Orthopedic Group, Inc.* | 73 | 1,059 | ||||||
Invacare Corp. | 67 | 1,040 | ||||||
PharMerica Corp.* | 60 | 940 | ||||||
Dendreon Corp.* | 200 | 916 | ||||||
ev3, Inc.* | 150 | 915 | ||||||
Par Pharmaceutical Companies, Inc.* | 68 | 912 | ||||||
National Healthcare Corp. | 18 | 912 | ||||||
Salix Pharmaceuticals Ltd.* | 100 | 883 | ||||||
Conceptus, Inc.* | 56 | 852 | ||||||
Cyberonics, Inc.* | 50 | 828 | ||||||
Analogic Corp. | 30 | 818 | ||||||
inVentiv Health, Inc.* | 70 | 808 | ||||||
Omnicell, Inc.* | 66 | 806 | ||||||
Healthways, Inc.* | 70 | 804 | ||||||
Abaxis, Inc.* | 50 | 801 | ||||||
Vivus, Inc.* | 150 | 798 | ||||||
Sun Healthcare Group, Inc.* | 90 | 796 | ||||||
Geron Corp.* | 168 | 785 | ||||||
Quidel Corp.* | 60 | 784 | ||||||
Emergent Biosolutions, Inc.* | 30 | 783 | ||||||
Kindred Healthcare, Inc.* | 60 | 781 | ||||||
Cougar Biotechnology, Inc.* | 30 | 780 | ||||||
Natus Medical, Inc.* | 60 | 777 | ||||||
Kendle International, Inc.* | 30 | 772 | ||||||
SurModics, Inc.* | 30 | 758 | ||||||
Res-Care, Inc.* | 50 | 751 | ||||||
Neogen Corp.* | 30 | 749 | ||||||
InterMune, Inc.* | 70 | 741 | ||||||
Medivation, Inc.* | 50 | 728 | ||||||
Halozyme Therapeutics, Inc.* | 130 | 728 | ||||||
SonoSite, Inc.* | 38 | 725 | ||||||
Zoll Medical Corp.* | 38 | 718 | ||||||
Universal American Financial Corp.* | 80 | 706 | ||||||
Emergency Medical Services Corp. — Class A* | 19 | 696 | ||||||
Genoptix Inc.* | 20 | 682 | ||||||
GTx, Inc.* | 40 | 674 | ||||||
Allos Therapeutics, Inc.* | 110 | 673 | ||||||
Savient Pharmaceuticals, Inc.* | 116 | 672 | ||||||
Arena Pharmaceuticals, Inc.* | 160 | 667 | ||||||
Angiodynamics, Inc.* | 48 | 657 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Odyssey HealthCare, Inc.* | 70 | $ | 648 | |||||
Rigel Pharmaceuticals, Inc.* | 78 | 624 | ||||||
Progenics Pharmaceuticals, Inc.* | 60 | 619 | ||||||
Cross Country Healthcare, Inc.* | 70 | 615 | ||||||
Human Genome Sciences, Inc.* | 290 | 615 | ||||||
Orthofix International NV* | 40 | 613 | ||||||
RehabCare Group, Inc.* | 40 | 606 | ||||||
Incyte Corp.* | 160 | 606 | ||||||
Symmetry Medical, Inc.* | 76 | 606 | ||||||
Optimer Pharmaceuticals, Inc.* | 50 | 606 | ||||||
NPS Pharmaceuticals, Inc.* | 97 | 602 | ||||||
eResearch Technology, Inc.* | 90 | 597 | ||||||
ICU Medical, Inc.* | 18 | 597 | ||||||
Genomic Health, Inc.* | 30 | 584 | ||||||
MedAssets, Inc.* | 40 | 584 | ||||||
Momenta Pharmaceuticals, Inc.* | 50 | 580 | ||||||
Durect Corp.* | 170 | 576 | ||||||
Osiris Therapeutics, Inc.* | 30 | 575 | ||||||
CryoLife, Inc.* | 59 | 573 | ||||||
Synovis Life Technologies, Inc.* | 30 | 562 | ||||||
Enzon Pharmaceuticals, Inc.* | 96 | 560 | ||||||
AMN Healthcare Services, Inc.* | 66 | 558 | ||||||
IRIS International, Inc.* | 40 | 558 | ||||||
Noven Pharmaceuticals, Inc.* | 50 | 550 | ||||||
Cypress Bioscience, Inc.* | 80 | 547 | ||||||
MWI Veterinary Supply, Inc.* | 20 | 539 | ||||||
Albany Molecular Research, Inc.* | 55 | 536 | ||||||
Indevus Pharmaceuticals, Inc.* | 170 | 534 | ||||||
Molina Healthcare, Inc.* | 30 | 528 | ||||||
Bio-Reference Labs, Inc.* | 20 | 525 | ||||||
Metabolix, Inc.* | 40 | 509 | ||||||
Pharmasset, Inc.* | 38 | 498 | ||||||
Somanetics Corp.* | 30 | 495 | ||||||
Ligand Pharmaceuticals, Inc. — Class B* | 180 | 493 | ||||||
Vnus Medical Technologies, Inc.* | 30 | 487 | ||||||
Assisted Living Concepts, Inc. — Class A* | 116 | 481 | ||||||
Facet Biotech Corp.* | 50 | 480 | ||||||
Orthovita, Inc.* | 140 | 475 | ||||||
Palomar Medical Technologies, Inc.* | 40 | 461 | ||||||
ImmunoGen, Inc.* | 106 | 455 | ||||||
Affymetrix, Inc.* | 152 | 454 | ||||||
Almost Family, Inc.* | 10 | 450 | ||||||
Maxygen Inc.* | 50 | 446 | ||||||
Bruker BioSciences Corp.* | 110 | 444 | ||||||
Cantel Medical Corp.* | 30 | 440 | ||||||
Corvel Corp.* | 20 | 440 | ||||||
Dyax Corp.* | 119 | 433 | ||||||
Computer Programs & Systems, Inc. | 16 | 429 | ||||||
Vital Images, Inc.* | 30 | 417 | ||||||
Pain Therapeutics, Inc.* | 70 | 414 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 65 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Accuray, Inc.* | 80 | $ | 413 | |||||
FGX International Holdings Ltd.* | 30 | 412 | ||||||
Emeritus Corp.* | 40 | 401 | ||||||
Alliance Imaging, Inc.* | 50 | 399 | ||||||
Array Biopharma, Inc.* | 96 | 389 | ||||||
Sirona Dental Systems, Inc.* | 37 | 389 | ||||||
Kensey Nash Corp.* | 20 | 388 | ||||||
Arqule, Inc.* | 90 | 380 | ||||||
MannKind Corp.* | 110 | 377 | ||||||
US Physical Therapy, Inc.* | 28 | 373 | ||||||
OraSure Technologies, Inc.* | 100 | 368 | ||||||
Ardea Biosciences, Inc.* | 30 | 359 | ||||||
Nabi Biopharmaceuticals* | 106 | 355 | ||||||
Triple-S Management Corp. — Class B* | 30 | 345 | ||||||
Enzo Biochem, Inc.* | 70 | 342 | ||||||
Skilled Healthcare Group, Inc. — Class A* | 40 | 338 | ||||||
Exactech, Inc.* | 20 | 337 | ||||||
Micrus Endovascular Corp.* | 29 | 337 | ||||||
Ensign Group, Inc. | 20 | 335 | ||||||
Air Methods Corp.* | 20 | 320 | ||||||
Inspire Pharmaceuticals, Inc.* | 88 | 317 | ||||||
Medcath Corp.* | 30 | 313 | ||||||
Insulet Corp.* | 40 | 309 | ||||||
Idera Pharmaceuticals, Inc.* | 40 | 307 | ||||||
RTI Biologics, Inc.* | 110 | 304 | ||||||
Pozen, Inc.* | 60 | 302 | ||||||
Cardiac Science Corp.* | 40 | 300 | ||||||
Medical Action Industries, Inc.* | 30 | 300 | ||||||
Obagi Medical Products, Inc.* | 40 | 298 | ||||||
Cadence Pharmaceuticals, Inc.* | 40 | 289 | ||||||
Hansen Medical, Inc.* | 40 | 289 | ||||||
ArthroCare Corp.* | 60 | 286 | ||||||
Accelrys, Inc.* | 64 | 279 | ||||||
BMP Sunstone Corp.* | 50 | 279 | ||||||
Idenix Pharmaceuticals, Inc.* | 48 | 278 | ||||||
Cambrex Corp.* | 60 | 277 | ||||||
Akorn, Inc.* | 120 | 276 | ||||||
Sangamo Biosciences, Inc.* | 78 | 271 | ||||||
Stereotaxis, Inc.* | 60 | 264 | ||||||
Neurocrine Biosciences, Inc.* | 80 | 256 | ||||||
Affymax, Inc.* | 25 | 250 | ||||||
Repligen Corp.* | 66 | 249 | ||||||
BioMimetic Therapeutics, Inc.* | 27 | 249 | ||||||
CardioNet, Inc.* | 10 | 247 | ||||||
Nighthawk Radiology Holdings, Inc.* | 50 | 243 | ||||||
I-Flow Corp.* | 50 | 240 | ||||||
Zymogenetics, Inc.* | 80 | 240 | ||||||
Lexicon Genetics, Inc.* | 170 | 238 | ||||||
Celldex Therapeutics, Inc.* | 30 | 238 | ||||||
Discovery Laboratories, Inc.* | 210 | 235 | ||||||
Immunomedics, Inc.* | 138 | 235 | ||||||
Orexigen Therapeutics, Inc.* | 40 | 223 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Synta Pharmaceuticals Corp.* | 36 | $ | 220 | |||||
Novavax, Inc.* | 116 | 219 | ||||||
TomoTherapy, Inc.* | 86 | 205 | ||||||
TranS1, Inc.* | 28 | 202 | ||||||
KV Pharmaceutical Co.* | 70 | 202 | ||||||
Cytokinetics, Inc.* | 67 | 191 | ||||||
Life Sciences Research, Inc.* | 20 | 188 | ||||||
Cynosure, Inc.* | 20 | 183 | ||||||
Clinical Data, Inc.* | 20 | 178 | ||||||
Spectranetics Corp.* | 68 | 177 | ||||||
XOMA Ltd.* | 280 | 174 | ||||||
Molecular Insight Pharmaceuticals, Inc.* | 40 | 172 | ||||||
IPC The Hospitalist Company, Inc.* | 10 | 168 | ||||||
RadNet, Inc.* | 50 | 168 | ||||||
Adolor Corp.* | 100 | 166 | ||||||
Sunrise Senior Living, Inc.* | 98 | 165 | ||||||
Alexza Pharmaceuticals, Inc.* | 50 | 159 | ||||||
Depomed, Inc.* | 96 | 158 | ||||||
Opko Health, Inc.* | 96 | 156 | ||||||
NxStage Medical, Inc.* | 58 | 155 | ||||||
DexCom, Inc.* | 56 | 155 | ||||||
Acura Pharmaceuticals, Inc.* | 20 | 147 | ||||||
Cytori Therapeutics, Inc.* | 40 | 144 | ||||||
Chindex International, Inc.* | 18 | 143 | ||||||
Nanosphere, Inc.* | 30 | 143 | ||||||
Capital Senior Living Corp.* | 47 | 140 | ||||||
MAP Pharmaceuticals, Inc.* | 20 | 140 | ||||||
Targacept, Inc.* | 37 | 132 | ||||||
Ariad Pharmaceuticals, Inc.* | 150 | 128 | ||||||
Columbia Labs, Inc.* | 100 | 127 | ||||||
Javelin Pharmaceuticals, Inc.* | 100 | 125 | ||||||
Caraco Pharm Labs, Inc.* | 20 | 118 | ||||||
MiddleBrook Pharmaceuticals, Inc.* | 78 | 117 | ||||||
Sucampo Pharmaceuticals, Inc. — Class A* | 20 | 115 | ||||||
Alphatec Holdings, Inc.* | 48 | 113 | ||||||
Five Star Quality Care, Inc.* | 70 | 107 | ||||||
Biodel, Inc.* | 20 | 96 | ||||||
Caliper Life Sciences, Inc.* | 96 | 93 | ||||||
Virtual Radiologic Corp.* | 10 | 85 | ||||||
Amicus Therapeutics, Inc.* | 9 | 72 | ||||||
Acadia Pharmaceuticals, Inc.* | 70 | 63 | ||||||
Vision-Sciences, Inc.* | 38 | 58 | ||||||
Rexahn Pharmaceuticals, Inc.* | 60 | 53 | ||||||
BioForm Medical, Inc.* | 50 | 46 | ||||||
Providence Service Corp.* | 30 | 44 | ||||||
Cell Genesys, Inc.* | 178 | 39 | ||||||
Jazz Pharmaceuticals, Inc.* | 20 | 39 | ||||||
Protalix BioTherapeutics, Inc.* | 20 | 37 | ||||||
PharmaNet Development Group, Inc.* | 37 | 34 | ||||||
Marshall Edwards, Inc.* | 40 | 28 | ||||||
Total Health Care | 239,554 | |||||||
66 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CONSUMER DISCRETIONARY 5.1% | ||||||||
Wendy’s/Arby’s Group, Inc. — Class A | 840 | $ | 4,150 | |||||
Marvel Entertainment, Inc.* | 100 | 3,075 | ||||||
Corinthian Colleges, Inc.* | 180 | 2,947 | ||||||
Jack in the Box, Inc.* | 130 | 2,872 | ||||||
Tupperware Brands Corp. | 126 | 2,860 | ||||||
Bally Technologies, Inc.* | 116 | 2,787 | ||||||
Matthews International Corp. — Class A | 74 | 2,714 | ||||||
Netflix, Inc.* | 88 | 2,630 | ||||||
Aaron Rents, Inc. | 98 | 2,609 | ||||||
Rent-A-Center, Inc.* | 140 | 2,471 | ||||||
Tractor Supply Co.* | 67 | 2,421 | ||||||
WMS Industries, Inc.* | 90 | 2,421 | ||||||
Deckers Outdoor Corp.* | 30 | 2,396 | ||||||
Carter’s, Inc.* | 120 | 2,311 | ||||||
Wolverine World Wide, Inc. | 109 | 2,293 | ||||||
Aeropostale, Inc.* | 140 | 2,254 | ||||||
Polaris Industries, Inc. | 70 | 2,005 | ||||||
Vail Resorts, Inc.* | 74 | 1,968 | ||||||
The Warnaco Group, Inc.* | 100 | 1,963 | ||||||
Interactive Data Corp. | 78 | 1,923 | ||||||
Capella Education Co.* | 30 | 1,763 | ||||||
Pool Corp. | 96 | 1,725 | ||||||
Under Armour, Inc.* | 70 | 1,669 | ||||||
Collective Brands, Inc.* | 140 | 1,641 | ||||||
Fossil, Inc.* | 97 | 1,620 | ||||||
Ryland Group, Inc. | 90 | 1,590 | ||||||
Chico’s FAS, Inc.* | 380 | 1,588 | ||||||
Sonic Corp.* | 130 | 1,582 | ||||||
Gymboree Corp.* | 60 | 1,565 | ||||||
Men’s Wearhouse, Inc. | 107 | 1,449 | ||||||
Bob Evans Farms, Inc. | 66 | 1,348 | ||||||
Cheesecake Factory, Inc.* | 130 | 1,313 | ||||||
Regis Corp. | 90 | 1,308 | ||||||
Callaway Golf Co. | 136 | 1,263 | ||||||
Sotheby’s | 140 | 1,245 | ||||||
Jakks Pacific, Inc.* | 60 | 1,238 | ||||||
Iconix Brand Group, Inc.* | 120 | 1,174 | ||||||
Coinstar, Inc.* | 60 | 1,171 | ||||||
Buffalo Wild Wings, Inc.* | 45 | 1,154 | ||||||
Sally Beauty Holdings, Inc.* | 200 | 1,138 | ||||||
Tempur-Pedic International, Inc. | 160 | 1,134 | ||||||
Timberland Co. — Class A* | 96 | 1,109 | ||||||
J. Crew Group, Inc.* | 90 | 1,098 | ||||||
99 Cents Only Stores* | 100 | 1,093 | ||||||
Buckle, Inc. | 50 | 1,091 | ||||||
Children’s Place Retail Stores, Inc.* | 50 | 1,084 | ||||||
Dress Barn, Inc.* | 100 | 1,074 | ||||||
Columbia Sportswear Co. | 30 | 1,061 | ||||||
Jos. A. Bank Clothiers, Inc.* | 40 | 1,046 | ||||||
NutriSystem, Inc. | 70 | 1,021 | ||||||
P.F. Chang’s China Bistro, Inc.* | 48 | 1,005 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Pinnacle Entertainment, Inc.* | 130 | $ | 998 | |||||
Fuel Systems Solutions, Inc.* | 30 | 983 | ||||||
Helen of Troy Ltd.* | 56 | 972 | ||||||
CEC Entertainment, Inc.* | 40 | 970 | ||||||
CKE Restaurants, Inc. | 110 | 955 | ||||||
Gaylord Entertainment Co.* | 88 | 954 | ||||||
Cracker Barrel Old Country | ||||||||
Store, Inc. | 46 | 947 | ||||||
Universal Technical Institute, Inc.* | 55 | 944 | ||||||
Hibbett Sports Inc.* | 60 | 943 | ||||||
Jackson Hewitt Tax Service, Inc. | 60 | 941 | ||||||
Fred’s, Inc. | 86 | 925 | ||||||
Papa John’s International, Inc.* | 50 | 921 | ||||||
Live Nation, Inc.* | 160 | 918 | ||||||
National CineMedia, Inc. | 90 | 913 | ||||||
Life Time Fitness, Inc.* | 70 | 906 | ||||||
Cato Corp. — Class A | 60 | 906 | ||||||
Skechers U.S.A., Inc. — Class A* | 70 | 897 | ||||||
Unifirst Corp. | 30 | 891 | ||||||
Steiner Leisure Ltd.* | 30 | 886 | ||||||
PetMed Express, Inc.* | 50 | 881 | ||||||
Steven Madden, Ltd.* | 40 | 853 | ||||||
Texas Roadhouse, Inc.* | 110 | 852 | ||||||
Meritage Homes Corp.* | 70 | 852 | ||||||
Exide Technologies* | 160 | 846 | ||||||
HOT Topic, Inc.* | 90 | 834 | ||||||
Churchill Downs, Inc. | 20 | 808 | ||||||
Brunswick Corp. | 190 | 800 | ||||||
Arbitron, Inc. | 60 | 797 | ||||||
Cooper Tire & Rubber Co. | 126 | 776 | ||||||
Jo-Ann Stores, Inc.* | 50 | 774 | ||||||
National Presto Industries, Inc. | 10 | 770 | ||||||
Monro Muffler Brake, Inc. | 30 | 765 | ||||||
Brown Shoe Company, Inc. | 90 | 762 | ||||||
American Greetings Corp. — | ||||||||
Class A | 100 | 757 | ||||||
Pre-Paid Legal Services, Inc.* | 20 | 746 | ||||||
American Public Education, Inc.* | 20 | 744 | ||||||
Ethan Allen Interiors, Inc. | 50 | 718 | ||||||
Peet’s Coffee & Tea, Inc.* | 30 | 698 | ||||||
Scholastic Corp. | 50 | 679 | ||||||
Genesco, Inc.* | 40 | 677 | ||||||
Blue Nile, Inc.* | 27 | 661 | ||||||
K-Swiss, Inc. — Class A | 58 | 661 | ||||||
Weyco Group, Inc. | 20 | 661 | ||||||
Stage Stores, Inc. | 80 | 660 | ||||||
Marcus Corp. | 40 | 649 | ||||||
Red Robin Gourmet Burgers, Inc.* | 38 | 640 | ||||||
Bebe Stores, Inc. | 80 | 598 | ||||||
The Wet Seal, Inc. — Class A* | 200 | 594 | ||||||
Charming Shoppes, Inc.* | 240 | 586 | ||||||
World Wrestling | ||||||||
Entertainment, Inc. | 50 | 554 | ||||||
Shuffle Master, Inc.* | 110 | 546 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 67 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Stewart Enterprises, Inc. — Class A | 180 | $ | 542 | |||||
Group 1 Automotive, Inc. | 50 | 539 | ||||||
Superior Industries | ||||||||
International, Inc. | 50 | 526 | ||||||
Maidenform Brands, Inc.* | 50 | 508 | ||||||
Finish Line, Inc. — Class A | 90 | 504 | ||||||
Harte-Hanks, Inc. | 80 | 499 | ||||||
True Religion Apparel, Inc.* | 40 | 498 | ||||||
Quiksilver, Inc.* | 270 | 497 | ||||||
Universal Electronics, Inc.* | 30 | 487 | ||||||
Drew Industries, Inc.* | 40 | 480 | ||||||
Blockbuster, Inc. — Class A* | 380 | 479 | ||||||
Dillard’s, Inc. — Class A | 120 | 476 | ||||||
Cabela’s, Inc. — Class A* | 80 | 466 | ||||||
Standard-Pacific Corp.* | 260 | 463 | ||||||
DineEquity, Inc. | 40 | 462 | ||||||
ArvinMeritor, Inc. | 160 | 456 | ||||||
RCN Corp.* | 76 | 448 | ||||||
Citi Trends, Inc.* | 30 | 442 | ||||||
Volcom, Inc.* | 40 | 436 | ||||||
Speedway Motorsports, Inc. | 27 | 435 | ||||||
Ameristar Casinos, Inc. | 50 | 432 | ||||||
BJ’s Restaurants, Inc.* | 40 | 431 | ||||||
Core-Mark Holding Company, Inc.* | 20 | 430 | ||||||
California Pizza Kitchen, Inc.* | 40 | 429 | ||||||
RC2 Corp.* | 40 | 427 | ||||||
Christopher & Banks Corp. | 76 | 426 | ||||||
Cinemark Holdings, Inc. | 57 | 424 | ||||||
CKX, Inc.* | 110 | 404 | ||||||
Denny’s Corp.* | 198 | 394 | ||||||
Blyth, Inc. | 50 | 392 | ||||||
Raser Technologies, Inc.* | 104 | 388 | ||||||
Domino’s Pizza, Inc.* | 80 | 377 | ||||||
DSW, Inc.* | 30 | 374 | ||||||
Ambassadors Group, Inc. | 40 | 368 | ||||||
PEP Boys-Manny Moe & Jack | 88 | 363 | ||||||
Winnebago Industries, Inc. | 60 | 362 | ||||||
Steak n Shake Co.* | 60 | 357 | ||||||
CSS Industries, Inc. | 20 | 355 | ||||||
Haverty Furniture Companies, Inc. | 37 | 345 | ||||||
Mediacom Communications Corp.* | 80 | 344 | ||||||
Coldwater Creek, Inc.* | 120 | 342 | ||||||
Sinclair Broadcast Group, Inc. — Class A | 110 | 341 | ||||||
Modine Manufacturing Co. | 70 | 341 | ||||||
iRobot Corp.* | 37 | 334 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc.* | 40 | 331 | ||||||
Dolan Media Co.* | 50 | 330 | ||||||
Overstock.com, Inc.* | 30 | 323 | ||||||
Spartan Motors, Inc. | 68 | 322 | ||||||
Asbury Automotive Group, Inc. | 70 | 320 | ||||||
M/I Homes, Inc. | 30 | 316 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Midas, Inc.* | 30 | $ | 315 | |||||
Cherokee, Inc. | 18 | 312 | ||||||
Orbitz Worldwide, Inc.* | 80 | 310 | ||||||
Knology, Inc.* | 60 | 310 | ||||||
Lululemon Athletica, Inc.* | 38 | 301 | ||||||
Zumiez, Inc.* | 40 | 298 | ||||||
Belo Corp. — Class A | 190 | 296 | ||||||
Tenneco, Inc.* | 100 | 295 | ||||||
Stamps.com, Inc.* | 30 | 295 | ||||||
Cox Radio Inc. — Class A* | 49 | 294 | ||||||
American Axle & Manufacturing Holdings, Inc. | 98 | 283 | ||||||
Movado Group, Inc. | 30 | 282 | ||||||
Shutterfly, Inc.* | 40 | 280 | ||||||
Morgans Hotel Group Co.* | 60 | 280 | ||||||
Unifi, Inc.* | 98 | 276 | ||||||
America’s Car Mart, Inc.* | 20 | 276 | ||||||
Cavco Industries, Inc.* | 10 | 269 | ||||||
Dorman Products, Inc.* | 20 | 264 | ||||||
Oxford Industries, Inc. | 30 | 263 | ||||||
Big 5 Sporting Goods Corp. | 50 | 261 | ||||||
hhgregg, Inc.* | 30 | 260 | ||||||
Charlotte Russe Holding, Inc.* | 40 | 260 | ||||||
Sonic Automotive, Inc. | 64 | 255 | ||||||
Leapfrog Enterprises, Inc.* | 70 | 245 | ||||||
AFC Enterprises, Inc.* | 50 | 235 | ||||||
Zale Corp.* | 70 | 233 | ||||||
Monarch Casino & Resort, Inc.* | 20 | 233 | ||||||
La-Z-Boy, Inc. | 107 | 232 | ||||||
Landry’s Restaurants, Inc. | 20 | 232 | ||||||
1-800-FLOWERS.com, Inc.* | 60 | 229 | ||||||
RHI Entertainment* | 28 | 227 | ||||||
Sealy Corp. | 90 | 226 | ||||||
CROCS, Inc.* | 180 | 223 | ||||||
drugstore.com, Inc.* | 180 | 223 | ||||||
Luby’s, Inc.* | 53 | 222 | ||||||
Pacific Sunwear of California, Inc.* | 139 | 221 | ||||||
Global Sources Ltd.* | 40 | 218 | ||||||
Tween Brands, Inc.* | 50 | 216 | ||||||
Journal Communications, Inc. — Class A | 88 | 216 | ||||||
Systemax, Inc. | 20 | 215 | ||||||
Lumber Liquidators, Inc.* | 20 | 211 | ||||||
Outdoor Channel Holdings, Inc.* | 28 | 210 | ||||||
Retail Ventures, Inc.* | 60 | 208 | ||||||
Fisher Communications, Inc. | 10 | 206 | ||||||
Entravision Communications Corp. — Class A* | 130 | 203 | ||||||
Krispy Kreme Doughnuts, Inc.* | 120 | 202 | ||||||
Audiovox Corp. — Class A* | 40 | 200 | ||||||
Skyline Corp. | 10 | 200 | ||||||
Furniture Brands International, Inc. | 90 | 199 | ||||||
Lear Corp.* | 140 | 197 | ||||||
Build-A-Bear Workshop, Inc.* | 40 | 194 |
68 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Shoe Carnival, Inc.* | 20 | $ | 191 | |||||
Perry Ellis International, Inc.* | 30 | 190 | ||||||
K12 Inc.* | 10 | 188 | ||||||
Smith & Wesson Holding Corp.* | 78 | 177 | ||||||
Steinway Musical Instruments, Inc.* | 10 | 175 | ||||||
G-III Apparel Group Ltd.* | 27 | 173 | ||||||
Hovnanian Enterprises, Inc. — Class A* | 100 | 172 | ||||||
Ruby Tuesday, Inc.* | 110 | 172 | ||||||
Learning Tree International, Inc.* | 20 | 170 | ||||||
Gaiam, Inc.* | 36 | 166 | ||||||
Global Traffic Network, Inc.* | 28 | 164 | ||||||
Rex Stores Corp.* | 20 | 161 | ||||||
Dana Holding Corp.* | 210 | 155 | ||||||
Hooker Furniture Corp. | 20 | 153 | ||||||
Amerigon, Inc.* | 46 | 150 | ||||||
Quantum Fuel Systems | ||||||||
Technologies Worldwide, Inc.* | 176 | 150 | ||||||
Cumulus Media, Inc. — Class A* | 60 | 149 | ||||||
Princeton Review, Inc.* | 30 | 148 | ||||||
Conn’s, Inc.* | 17 | 144 | ||||||
Kenneth Cole Productions, Inc. — Class A | 20 | 142 | ||||||
American Apparel, Inc.* | 70 | 139 | ||||||
Stoneridge, Inc.* | 30 | 137 | ||||||
Lincoln Educational Services Corp.* | 10 | 133 | ||||||
Martha Stewart Omnimedia, Inc.* | 50 | 130 | ||||||
Russ Berrie & Company, Inc.* | 43 | 128 | ||||||
Town Sports International Holdings, Inc.* | 40 | 128 | ||||||
Valassis Communications, Inc.* | 96 | 127 | ||||||
Beazer Homes USA, Inc.* | 80 | 126 | ||||||
Talbots, Inc. | 50 | 120 | ||||||
Nautilus, Inc.* | 54 | 119 | ||||||
Wonder Auto Technology, Inc.* | 30 | 118 | ||||||
New York & Company, Inc.* | 50 | 116 | ||||||
Primedia, Inc. | 50 | 109 | ||||||
Playboy Enterprises, Inc. — Class B* | 50 | 108 | ||||||
Fuqi International, Inc.* | 17 | 106 | ||||||
MarineMax, Inc.* | 30 | 102 | ||||||
Palm Harbor Homes, Inc.* | 20 | 100 | ||||||
Hayes Lemmerz International, Inc.* | 220 | 99 | ||||||
Visteon Corp.* | 280 | 98 | ||||||
Tuesday Morning Corp.* | 60 | 98 | ||||||
Isle of Capri Casinos, Inc.* | 30 | 96 | ||||||
McClatchy Company — Class A | 120 | 96 | ||||||
Marine Products Corp. | 17 | 96 | ||||||
Dover Downs Gaming & Entertainment, Inc. | 30 | 95 | ||||||
Champion Enterprises, Inc.* | 170 | 95 | ||||||
Bluegreen Corp.* | 30 | 94 | ||||||
Great Wolf Resorts, Inc.* | 60 | 92 | ||||||
Syms Corp.* | 10 | 89 |
MARKET | ||||||||
SHARES | VALUE | |||||||
AH Belo Corp. — Class A | 40 | $ | 87 | |||||
Media General, Inc. | 46 | 81 | ||||||
O’Charleys, Inc. | 37 | 74 | ||||||
Brookfield Homes Corp. | 17 | 73 | ||||||
Charter Communications, Inc. — Class A* | 870 | 71 | ||||||
Pier 1 Imports, Inc.* | 190 | 70 | ||||||
Lodgian, Inc.* | 30 | 64 | ||||||
Citadel Broadcasting Corp.* | 390 | 62 | ||||||
Entercom Communications Corp. | 50 | 62 | ||||||
Lin TV Corp. — Class A* | 56 | 61 | ||||||
Riviera Holdings Corp.* | 20 | 60 | ||||||
Einstein Noah Restaurant Group, Inc.* | 10 | 58 | ||||||
Crown Media Holdings, Inc. — Class A* | 20 | 57 | ||||||
Stein Mart, Inc.* | 50 | 57 | ||||||
Ruth’s Chris Steak House* | 40 | 55 | ||||||
RH Donnelley Corp.* | 146 | 54 | ||||||
Borders Group, Inc.* | 130 | 52 | ||||||
Six Flags, Inc.* | 150 | 47 | ||||||
Bidz.com, Inc.* | 10 | 46 | ||||||
Casual Male Retail Group, Inc.* | 80 | 42 | ||||||
Lee Enterprises, Inc. | 100 | 41 | ||||||
Cache, Inc.* | 20 | 40 | ||||||
Rick’s Cabaret International, Inc.* | 10 | 40 | ||||||
Libbey, Inc. | 30 | 38 | ||||||
Gray Television, Inc. | 90 | 36 | ||||||
Dover Motorsports, Inc. | 27 | 35 | ||||||
Fleetwood Enterprises, Inc.* | 160 | 16 | ||||||
Total Consumer Discretionary | 173,638 | |||||||
UTILITIES 2.0% | ||||||||
Piedmont Natural Gas Co. | 160 | 5,067 | ||||||
ITC Holdings Corp. | 110 | 4,805 | ||||||
Westar Energy, Inc. | 220 | 4,512 | ||||||
WGL Holdings, Inc. | 110 | 3,596 | ||||||
New Jersey Resources Corp. | 88 | 3,463 | ||||||
Nicor, Inc. | 97 | 3,370 | ||||||
IDACORP, Inc. | 98 | 2,886 | ||||||
Cleco Corp. | 126 | 2,877 | ||||||
Northwest Natural Gas Co. | 60 | 2,654 | ||||||
Portland General Electric Co. | 130 | 2,531 | ||||||
South Jersey Industries, Inc. | 60 | 2,391 | ||||||
Laclede Group, Inc. | 50 | 2,342 | ||||||
Southwest Gas Corp. | 90 | 2,270 | ||||||
Black Hills Corp. | 80 | 2,157 | ||||||
Avista Corp. | 108 | 2,093 | ||||||
Unisource Energy Corp. | 70 | 2,055 | ||||||
Allete, Inc. | 60 | 1,936 | ||||||
California Water Service Group | 40 | 1,857 | ||||||
NorthWestern Corp. | 78 | 1,831 | ||||||
PNM Resources, Inc. | 177 | 1,784 | ||||||
El Paso Electric Co.* | 97 | 1,755 | ||||||
Mge Energy, Inc. | 50 | 1,650 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 69 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CH Energy Group, Inc. | 30 | $ | 1,542 | |||||
UIL Holding Corp. | 50 | 1,501 | ||||||
Ormat Technologies, Inc. | 40 | 1,275 | ||||||
Empire District Electric Co. | 70 | 1,232 | ||||||
American States Water Co. | 36 | 1,187 | ||||||
SJW Corp. | 30 | 898 | ||||||
Central Vermont Public Service Corp. | 20 | 477 | ||||||
Connecticut Water Service, Inc. | 20 | 472 | ||||||
Middlesex Water Co. | 27 | 465 | ||||||
Cadiz, Inc.* | 30 | 375 | ||||||
Consolidated Water Company, Inc. | 30 | 375 | ||||||
Chesapeake Utilities Corp. | 10 | 315 | ||||||
Southwest Water Co. | 50 | 161 | ||||||
US Geothermal, Inc.* | 126 | 105 | ||||||
Synthesis Energy Systems, Inc.* | 50 | 34 | ||||||
Total Utilities | 70,296 | |||||||
ENERGY 2.0% | ||||||||
Comstock Resources, Inc.* | 100 | 4,725 | ||||||
EXCO Resources, Inc.* | 320 | 2,899 | ||||||
Concho Resources, Inc.* | 116 | 2,647 | ||||||
Nordic American Tanker Shipping | 70 | 2,362 | ||||||
Penn Virginia Corp. | 90 | 2,338 | ||||||
Arena Resources, Inc.* | 80 | 2,247 | ||||||
World Fuel Services Corp. | 60 | 2,220 | ||||||
Contango Oil & Gas Co.* | 30 | 1,689 | ||||||
Bill Barrett Corp.* | 78 | 1,648 | ||||||
Goodrich Petroleum Corp.* | 49 | 1,468 | ||||||
CARBO Ceramics, Inc. | 40 | 1,421 | ||||||
Dril-Quip, Inc.* | 66 | 1,354 | ||||||
Precision Drilling Trust | 161 | 1,347 | ||||||
Bristow Group, Inc.* | 50 | 1,340 | ||||||
McMoRan Exploration Co.* | 128 | 1,254 | ||||||
GulfMark Offshore, Inc.* | 50 | 1,190 | ||||||
Swift Energy Co.* | 70 | 1,177 | ||||||
Basic Energy Services, Inc.* | 90 | 1,174 | ||||||
USEC, Inc.* | 240 | 1,078 | ||||||
Lufkin Industries, Inc. | 30 | 1,035 | ||||||
Atlas America, Inc. | 67 | 995 | ||||||
Ship Finance International Ltd. | 88 | 972 | ||||||
Vaalco Energy, Inc.* | 130 | 967 | ||||||
Carrizo Oil & Gas, Inc.* | 60 | 966 | ||||||
GMX Resources, Inc.* | 36 | 912 | ||||||
James River Coal Co.* | 56 | 858 | ||||||
Complete Production Services, Inc.* | 105 | 856 | ||||||
BPZ Resources, Inc.* | 130 | 832 | ||||||
Hornbeck Offshore Services, Inc.* | 50 | 817 | ||||||
Rosetta Resources, Inc.* | 110 | 779 | ||||||
Stone Energy Corp.* | 66 | 727 | ||||||
Petroleum Development Corp.* | 30 | 722 | ||||||
Parker Drilling Co.* | 240 | 696 | ||||||
Newpark Resources, Inc.* | 186 | 688 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Berry Petroleum Co. — Class A | 90 | $ | 680 | |||||
Willbros Group, Inc.* | 80 | 678 | ||||||
International Coal Group, Inc.* | 270 | 621 | ||||||
Delta Petroleum Corp.* | 130 | 619 | ||||||
ION Geophysical Corp.* | 180 | 617 | ||||||
Gran Tierra Energy, Inc.* | 220 | 616 | ||||||
Pioneer Drilling Co.* | 110 | 613 | ||||||
Petroquest Energy, Inc.* | 90 | 608 | ||||||
NATCO Group, Inc.* | 40 | 607 | ||||||
Knightsbridge Tankers Ltd. | 40 | 586 | ||||||
Cal Dive International, Inc.* | 90 | 586 | ||||||
RPC, Inc. | 60 | 586 | ||||||
Golar LNG Ltd. | 80 | 541 | ||||||
Matrix Service Co.* | 58 | 445 | ||||||
Western Refining, Inc. | 56 | 435 | ||||||
Gulf Island Fabrication, Inc. | 30 | 432 | ||||||
PHI, Inc.* | 30 | 420 | ||||||
Clayton Williams Energy, Inc.* | 9 | 409 | ||||||
Superior Well Services, Inc.* | 40 | 400 | ||||||
Bronco Drilling Company, Inc.* | 60 | 388 | ||||||
Panhandle Oil and Gas, Inc. — Class A | 20 | 360 | ||||||
Crosstex Energy, Inc. | 90 | 351 | ||||||
ATP Oil & Gas Corp.* | 60 | 351 | ||||||
Allis-Chalmers Energy, Inc.* | 60 | 330 | ||||||
Brigham Exploration Co.* | 103 | 330 | ||||||
Harvest Natural Resources, Inc.* | 76 | 327 | ||||||
Dawson Geophysical Co.* | 18 | 321 | ||||||
Natural Gas Services Group, Inc.* | 30 | 304 | ||||||
Clean Energy Fuels Corp.* | 50 | 302 | ||||||
Cheniere Energy, Inc.* | 100 | 285 | ||||||
T-3 Energy Services, Inc. — Class A* | 30 | 283 | ||||||
Oilsands Quest, Inc.* | 370 | 270 | ||||||
APCO Argentina, Inc. | 10 | 266 | ||||||
FX Energy, Inc.* | 88 | 246 | ||||||
Rentech, Inc.* | 350 | 238 | ||||||
Gulfport Energy Corp.* | 60 | 237 | ||||||
Warren Resources, Inc.* | 116 | 231 | ||||||
Westmoreland Coal Co.* | 20 | 222 | ||||||
Toreador Resources Corp.* | 38 | 209 | ||||||
Energy XXI Bermuda Ltd. | 260 | 205 | ||||||
CVR Energy, Inc.* | 50 | 200 | ||||||
ENGlobal Corp.* | 60 | 195 | ||||||
Alon USA Energy, Inc. | 20 | 183 | ||||||
OYO Geospace Corp.* | 10 | 175 | ||||||
Parallel Petroleum Corp.* | 86 | 173 | ||||||
Union Drilling, Inc.* | 30 | 156 | ||||||
Approach Resources, Inc.* | 20 | 146 | ||||||
Delek US Holdings, Inc. | 27 | 143 | ||||||
Double Eagle Petroleum Co.* | 20 | 140 | ||||||
Bolt Technology Corp.* | 20 | 139 | ||||||
Rex Energy Corp.* | 45 | 132 | ||||||
Northern Oil And Gas, Inc.* | 50 | 130 |
70 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
BMB Munai, Inc.* | 88 | $ | 122 | |||||
GeoGlobal Resources, Inc.* | 76 | 122 | ||||||
Trico Marine Services, Inc.* | 27 | 121 | ||||||
Endeavour International Corp.* | 236 | 118 | ||||||
Venoco, Inc.* | 40 | 108 | ||||||
Sulphco, Inc.* | 110 | 103 | ||||||
Houston American Energy Corp. | 30 | 101 | ||||||
Callon Petroleum Co.* | 38 | 99 | ||||||
TXCO Resources, Inc.* | 66 | 98 | ||||||
Meridian Resource Corp.* | 170 | 97 | ||||||
Energy Partners Ltd.* | 70 | 95 | ||||||
Tri-Valley Corp.* | 50 | 90 | ||||||
RAM Energy Resources, Inc.* | 100 | 88 | ||||||
Georesources, Inc.* | 10 | 87 | ||||||
Uranium Resources, Inc.* | 100 | 77 | ||||||
Gasco Energy, Inc.* | 196 | 76 | ||||||
National Coal Corp.* | 60 | 76 | ||||||
GeoMet, Inc.* | 40 | 69 | ||||||
Mitcham Industries, Inc.* | 17 | 67 | ||||||
American Oil & Gas, Inc.* | 80 | 64 | ||||||
Abraxas Petroleum Corp.* | 88 | 63 | ||||||
Evergreen Energy Inc.* | 180 | 52 | ||||||
GreenHunter Energy, Inc.* | 10 | 49 | ||||||
Cano Petroleum, Inc.* | 100 | 44 | ||||||
Pacific Ethanol, Inc.* | 90 | 40 | ||||||
Aventine Renewable Energy Holdings, Inc.* | 59 | 38 | ||||||
Quest Resource Corp.* | 60 | 26 | ||||||
Geokinetics, Inc.* | 10 | 25 | ||||||
Total Energy | 69,082 | |||||||
CONSUMER STAPLES 1.8% | ||||||||
Ralcorp Holdings, Inc.* | 116 | 6,774 | ||||||
Flowers Foods, Inc. | 160 | 3,898 | ||||||
Chattem, Inc.* | 40 | 2,861 | ||||||
Ruddick Corp. | 90 | 2,488 | ||||||
Casey’s General Stores, Inc. | 106 | 2,414 | ||||||
TreeHouse Foods, Inc.* | 74 | 2,016 | ||||||
Fresh Del Monte Produce, Inc.* | 88 | 1,973 | ||||||
Winn-Dixie Stores, Inc.* | 117 | 1,884 | ||||||
Hain Celestial Group, Inc.* | 90 | 1,718 | ||||||
United Natural Foods, Inc.* | 90 | 1,604 | ||||||
Nash Finch Co. | 35 | 1,571 | ||||||
Universal Corp. | 50 | 1,493 | ||||||
Green Mountain Coffee Roasters, Inc.* | 38 | 1,471 | ||||||
Sanderson Farms, Inc. | 40 | 1,382 | ||||||
Lancaster Colony Corp. | 40 | 1,372 | ||||||
Chiquita Brands International, Inc.* | 90 | 1,330 | ||||||
Lance, Inc. | 56 | 1,285 | ||||||
Tootsie Roll Industries, Inc. | 50 | 1,280 | ||||||
Spartan Stores, Inc. | 50 | 1,162 | ||||||
Nu Skin Enterprises, Inc. | 110 | 1,147 | ||||||
J&J Snack Foods Corp. | 30 | 1,076 | ||||||
Pantry, Inc.* | 50 | 1,072 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Vector Group Ltd. | 70 | $ | 953 | |||||
Darling International, Inc.* | 170 | 933 | ||||||
Smart Balance, Inc.* | 130 | 884 | ||||||
American Oriental | ||||||||
Bioengineering, Inc.* | 130 | 883 | ||||||
WD-40 Co. | 30 | 849 | ||||||
Central Garden and Pet Co. — Class A* | 140 | 826 | ||||||
Cal-Maine Foods, Inc. | 27 | 775 | ||||||
Prestige Brands Holdings, Inc. — Class A* | 70 | 738 | ||||||
Weis Markets, Inc. | 20 | 673 | ||||||
Elizabeth Arden, Inc.* | 50 | 630 | ||||||
Pricesmart, Inc. | 30 | 620 | ||||||
Andersons, Inc. | 37 | 610 | ||||||
Boston Beer Company, Inc. — Class A* | 20 | 568 | ||||||
Diamond Foods, Inc. | 28 | 564 | ||||||
Alliance One International, Inc.* | 190 | 559 | ||||||
Star Scientific, Inc.* | 138 | 529 | ||||||
Ingles Markets, Inc. — Class A | 30 | 528 | ||||||
Zhongpin, Inc.* | 40 | 480 | ||||||
Great Atlantic & Pacific Tea Company, Inc* | 76 | 477 | ||||||
Coca-Cola Bottling Company Consolidated | 10 | 460 | ||||||
Imperial Sugar Company, Inc. | 28 | 402 | ||||||
Griffin Land & Nurseries, Inc. | 10 | 369 | ||||||
Village Super Market | 6 | 344 | ||||||
USANA Health Sciences, Inc.* | 10 | 342 | ||||||
American Dairy, Inc.* | 20 | 301 | ||||||
China Sky One Medical, Inc.* | 18 | 288 | ||||||
Susser Holdings Corp.* | 20 | 266 | ||||||
Farmer Brothers Co. | 10 | 249 | ||||||
Alico, Inc. | 6 | 246 | ||||||
Calavo Growers, Inc. | 20 | 230 | ||||||
Synutra International, Inc.* | 20 | 220 | ||||||
B&G Foods, Inc. | 40 | 216 | ||||||
Inter Parfums, Inc. | 27 | 207 | ||||||
National Beverage Corp.* | 20 | 180 | ||||||
Omega Protein Corp.* | 40 | 160 | ||||||
Schiff Nutrition International, Inc.* | 16 | 96 | ||||||
Lifeway Foods, Inc.* | 10 | 90 | ||||||
HQ Sustainable Maritime Industries, Inc.* | 10 | 78 | ||||||
Mannatech, Inc. | 30 | 74 | ||||||
Reddy Ice Holdings, Inc. | 45 | 65 | ||||||
AgFeed Industries, Inc.* | 38 | 61 | ||||||
Total Consumer Staples | 61,294 | |||||||
MATERIALS 1.7% | ||||||||
Compass Minerals International, Inc. | 68 | 3,989 | ||||||
Royal Gold, Inc. | 60 | 2,953 | ||||||
Olin Corp. | 160 | 2,893 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 71 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Rock-Tenn Co. — Class A | 80 | $ | 2,734 | |||||
Silgan Holdings, Inc. | 50 | 2,391 | ||||||
Sensient Technologies Corp. | 96 | 2,293 | ||||||
Texas Industries, Inc. | 50 | 1,725 | ||||||
Minerals Technologies, Inc. | 40 | 1,636 | ||||||
H.B. Fuller Co. | 100 | 1,611 | ||||||
Worthington Industries, Inc. | 140 | 1,543 | ||||||
OM Group, Inc.* | 70 | 1,478 | ||||||
Calgon Carbon Corp.* | 90 | 1,382 | ||||||
Arch Chemicals, Inc. | 48 | 1,251 | ||||||
Amcol International Corp. | 50 | 1,048 | ||||||
NewMarket Corp. | 30 | 1,047 | ||||||
Coeur d’Alene Mines Corp.* | 1,170 | 1,030 | ||||||
Wausau Paper Corp. | 90 | 1,030 | ||||||
A. Schulman, Inc. | 60 | 1,020 | ||||||
Rockwood Holdings, Inc.* | 90 | 972 | ||||||
Balchem Corp. | 37 | 922 | ||||||
Deltic Timber Corp. | 20 | 915 | ||||||
Solutia, Inc.* | 200 | 900 | ||||||
Glatfelter | 96 | 893 | ||||||
W.R. Grace & Co.* | 146 | 872 | ||||||
Koppers Holdings, Inc. | 40 | 865 | ||||||
Hecla Mining Co.* | 270 | 756 | ||||||
Zep, Inc. | 38 | 734 | ||||||
Haynes International, Inc.* | 28 | 689 | ||||||
Kaiser Aluminum Corp. | 30 | 676 | ||||||
RTI International Metals, Inc.* | 46 | 658 | ||||||
Westlake Chemical Corp. | 40 | 652 | ||||||
PolyOne Corp.* | 200 | 630 | ||||||
Ferro Corp. | 89 | 627 | ||||||
Schweitzer-Mauduit International, Inc. | 30 | 601 | ||||||
Headwaters, Inc.* | 88 | 594 | ||||||
Zoltek Companies, Inc.* | 60 | 539 | ||||||
Allied Nevada Gold Corp.* | 100 | 506 | ||||||
Brush Engineered Materials, Inc.* | 38 | 483 | ||||||
Myers Industries, Inc. | 60 | 480 | ||||||
Stepan Co. | 10 | 470 | ||||||
American Vanguard Corp. | 40 | 468 | ||||||
Spartech Corp. | 70 | 438 | ||||||
A.M. Castle & Co. | 40 | 433 | ||||||
Olympic Steel, Inc. | 20 | 407 | ||||||
Innophos Holdings, Inc. | 20 | 396 | ||||||
Stillwater Mining Co.* | 76 | 375 | ||||||
Graphic Packaging Holding Co.* | 310 | 353 | ||||||
Louisiana-Pacific Corp. | 220 | 343 | ||||||
LSB Industries, Inc.* | 40 | 333 | ||||||
Landec Corp.* | 50 | 329 | ||||||
Quaker Chemical Corp. | 20 | 329 | ||||||
Horsehead Holding Corp.* | 70 | 329 | ||||||
GenTek, Inc.* | 20 | 301 | ||||||
Innospec, Inc. | 50 | 295 | ||||||
Buckeye Technologies, Inc.* | 80 | 291 | ||||||
U S Concrete, Inc.* | 80 | 269 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Neenah Paper, Inc. | 30 | $ | 265 | |||||
Penford Corp. | 20 | 202 | ||||||
ShengdaTech, Inc.* | 56 | 197 | ||||||
ICO, Inc.* | 58 | 183 | ||||||
AEP Industries, Inc.* | 10 | 176 | ||||||
Clearwater Paper Corp.* | 20 | 168 | ||||||
General Moly, Inc.* | 130 | 153 | ||||||
Universal Stainless & Alloy* | 10 | 145 | ||||||
Bway Holding Co.* | 18 | 143 | ||||||
NL Industries, Inc. | 10 | 134 | ||||||
Apex Silver Mines Ltd.* | 129 | 126 | ||||||
Flotek Industries, Inc.* | 50 | 126 | ||||||
Mercer International, Inc.* | 56 | 108 | ||||||
KapStone Paper and Packaging Corp.* | 40 | 95 | ||||||
General Steel Holdings, Inc.* | 20 | 79 | ||||||
AbitibiBowater, Inc.* | 110 | 52 | ||||||
China Precision Steel, Inc.* | 40 | 50 | ||||||
Sutor Technology Group Ltd.* | 20 | 46 | ||||||
Boise, Inc.* | 80 | 34 | ||||||
Verso Paper Corp. | 27 | 28 | ||||||
Total Materials | 56,687 | |||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||
tw telecom Inc.* | 310 | 2,626 | ||||||
NTELOS Holdings Corp. | 56 | 1,381 | ||||||
Shenandoah Telecommunications Co. | 48 | 1,346 | ||||||
Syniverse Holdings, Inc.* | 110 | 1,313 | ||||||
Centennial Communications Corp.* | 140 | 1,128 | ||||||
Premiere Global Services, Inc.* | 130 | 1,119 | ||||||
Cincinnati Bell, Inc.* | 520 | 1,004 | ||||||
Iowa Telecommunications Services, Inc. | 70 | 1,000 | ||||||
Alaska Communications Systems Group, Inc. | 90 | 844 | ||||||
Cbeyond, Inc.* | 50 | 799 | ||||||
General Communication, Inc. — Class A* | 96 | 777 | ||||||
Cogent Communications Group, Inc.* | 97 | 633 | ||||||
Fairpoint Communications, Inc. | 190 | 623 | ||||||
Consolidated Communications Holdings, Inc. | 50 | 594 | ||||||
USA Mobility, Inc.* | 50 | 579 | ||||||
Atlantic Tele-Network, Inc. | 19 | 505 | ||||||
Global Crossing* | 60 | 476 | ||||||
PAETEC Holding Corp.* | 260 | 374 | ||||||
iPCS, Inc. — Class A* | 40 | 274 | ||||||
ICO Global Communications Holdings Ltd.* | 220 | 249 | ||||||
Ibasis, Inc.* | 70 | 99 | ||||||
Hungarian Telephone & Cable Corp.* | 10 | 86 | ||||||
Vonage Holdings Corp.* | 107 | 71 |
72 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
RUSSELL 2000® 2x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Virgin Mobile USA, Inc. — Class A* | 60 | $ | 50 | |||||
TerreStar Corp.* | 120 | 48 | ||||||
IDT Corp. — Class B* | 118 | 47 | ||||||
FiberTower Corp.* | 260 | 42 | ||||||
Globalstar, Inc.* | 88 | 18 | ||||||
Total Telecommunication Services | 18,105 | |||||||
Total Common Stocks (Cost $1,757,002) | 1,570,771 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 29.9% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 261,740 | 261,740 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 261,740 | 261,740 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 261,740 | 261,740 | ||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% due 01/02/09 | 236,238 | 236,238 | ||||||
Total Repurchase Agreements (Cost $1,021,458) | 1,021,458 | |||||||
Total Investments 75.8% (Cost $2,778,460) | $ | 2,592,229 | ||||||
Other Assets in Excess of Liabilities – 24.2% | $ | 829,247 | ||||||
Net Assets – 100.0% | $ | 3,421,476 | ||||||
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $295,800) | 6 | $ | (809 | ) | ||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENTS | ||||||||
Goldman Sachs International January 2009 Russell 2000 Index Swap, Terminating 01/08/09** (Notional Market Value $3,317,920) | 6,643 | $ | 188,350 | |||||
Credit Suisse Capital, LLC March 2009 Russell 2000 Index Swap, Terminating 03/26/09** (Notional Market Value $1,724,942) | 3,454 | 79,838 | ||||||
(Total Notional Market Value $5,042,862) | $ | 268,188 | ||||||
* | Non-Income Producing Security. | |
** | Total Return based on Russell 2000 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 73 |
SCHEDULE OF INVESTMENTS
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 65.7% | ||||||||
FINANCIALS 15.4% | ||||||||
Realty Income Corp. | 1,250 | $ | 28,938 | |||||
Aspen Insurance Holdings Ltd. | 1,050 | 25,462 | ||||||
Senior Housing Properties Trust | 1,410 | 25,267 | ||||||
First Niagara Financial Group, Inc. | 1,460 | 23,608 | ||||||
Platinum Underwriters Holdings Ltd. | 600 | 21,648 | ||||||
Highwoods Properties, Inc. | 780 | 21,341 | ||||||
Validus Holdings Ltd. | 790 | 20,666 | ||||||
ProAssurance Corp.* | 390 | 20,584 | ||||||
FirstMerit Corp. | 990 | 20,384 | ||||||
Montpelier Re Holdings Ltd. | 1,150 | 19,308 | ||||||
Knight Capital Group, Inc. — Class A* | 1,160 | 18,734 | ||||||
UMB Financial Corp. | 380 | 18,673 | ||||||
Westamerica Bancorporation | 360 | 18,414 | ||||||
Washington Real Estate Investment Trust | 640 | 18,112 | ||||||
NewAlliance Bancshares, Inc. | 1,340 | 17,648 | ||||||
IPC Holdings Ltd. | 570 | 17,043 | ||||||
Healthcare Realty Trust, Inc. | 720 | 16,906 | ||||||
Susquehanna Bancshares, Inc. | 1,060 | 16,865 | ||||||
National Retail Properties, Inc. | 960 | 16,502 | ||||||
Apollo Investment Corp. | 1,750 | 16,292 | ||||||
Omega Healthcare Investors, Inc. | 1,010 | 16,130 | ||||||
Corporate Office Properties Trust SBI | 520 | 15,964 | ||||||
Home Properties, Inc. | 390 | 15,834 | ||||||
United Bankshares, Inc. | 470 | 15,613 | ||||||
Selective Insurance Group, Inc. | 659 | 15,111 | ||||||
Old National Bancorp | 810 | 14,710 | ||||||
Stifel Financial Corp.* | 320 | 14,672 | ||||||
Tanger Factory Outlet Centers, Inc. | 388 | 14,597 | ||||||
Hancock Holding Co. | 320 | 14,547 | ||||||
Zenith National Insurance Corp. | 460 | 14,522 | ||||||
Cathay General Bancorp | 609 | 14,464 | ||||||
Greenhill & Company, Inc. | 206 | 14,373 | ||||||
First Financial Bankshares, Inc. | 260 | 14,355 | ||||||
MFA Mortgage Investments, Inc. | 2,430 | 14,313 | ||||||
Glacier Bancorp, Inc. | 750 | 14,265 | ||||||
National Penn Bancshares, Inc. | 980 | 14,220 | ||||||
Prosperity Bancshares, Inc. | 480 | 14,203 | ||||||
RLI Corp. | 230 | 14,067 | ||||||
Odyssey Re Holdings Corp. | 270 | 13,989 | ||||||
FNB Corp. | 1,059 | 13,979 | ||||||
International Bancshares Corp. | 630 | 13,753 | ||||||
Trustmark Corp. | 610 | 13,170 | ||||||
Mid-America Apartment Communities, Inc. | 350 | 13,006 |
MARKET | ||||||||
SHARES | VALUE | |||||||
First Commonwealth Financial Corp. | 1,050 | $ | 12,999 | |||||
Argo Group International Holdings Ltd.* | 380 | 12,890 | ||||||
Potlatch Corp. | 480 | 12,485 | ||||||
East-West Bancorp, Inc. | 777 | 12,409 | ||||||
Signature Bank* | 430 | 12,337 | ||||||
Max Capital Group Ltd. | 690 | 12,213 | ||||||
MB Financial Corp. | 430 | 12,018 | ||||||
First Midwest Bancorp, Inc. | 600 | 11,982 | ||||||
Entertainment Properties Trust | 397 | 11,831 | ||||||
BioMed Realty Trust, Inc. | 990 | 11,603 | ||||||
Provident Financial Services, Inc. | 730 | 11,169 | ||||||
Eastgroup Properties, Inc. | 307 | 10,923 | ||||||
NBT Bancorp, Inc. | 390 | 10,904 | ||||||
Extra Space Storage, Inc. | 1,049 | 10,826 | ||||||
Franklin Street Properties Corp., Inc. | 730 | 10,767 | ||||||
Umpqua Holding Corp. | 740 | 10,708 | ||||||
DCT Industrial Trust, Inc. | 2,110 | 10,677 | ||||||
American Campus Communities, Inc. | 520 | 10,650 | ||||||
S&T Bancorp, Inc. | 290 | 10,295 | ||||||
Employers Holdings, Inc. | 610 | 10,065 | ||||||
Park National Corp. | 140 | 10,045 | ||||||
Cash America International, Inc. | 360 | 9,846 | ||||||
Sovran Self Storage, Inc. | 270 | 9,720 | ||||||
First Bancorp Puerto Rico | 870 | 9,692 | ||||||
Community Bank System, Inc. | 397 | 9,683 | ||||||
CVB Financial Corp. | 810 | 9,639 | ||||||
SVB Financial Group* | 367 | 9,626 | ||||||
Pacific Capital Bancorp | 570 | 9,622 | ||||||
IBERIABANK Corp. | 200 | 9,600 | ||||||
Equity Lifestyle Properties, Inc. | 250 | 9,590 | ||||||
UCBH Holdings, Inc. | 1,360 | 9,357 | ||||||
Delphi Financial Group, Inc. — Class A | 507 | 9,349 | ||||||
Piper Jaffray Companies, Inc.* | 230 | 9,145 | ||||||
Inland Real Estate Corp. | 700 | 9,086 | ||||||
Interactive Brokers Group, Inc. — Class A* | 500 | 8,945 | ||||||
Post Properties, Inc. | 540 | 8,910 | ||||||
WesBanco, Inc. | 326 | 8,870 | ||||||
TrustCo Bank Corp. | 930 | 8,844 | ||||||
United Fire & Casualty Co. | 280 | 8,700 | ||||||
Navigators Group, Inc.* | 156 | 8,566 | ||||||
PHH Corp.* | 670 | 8,529 | ||||||
PrivateBancorp, Inc. | 260 | 8,440 | ||||||
Infinity Property & Casualty Corp. | 180 | 8,411 | ||||||
Pinnacle Financial Partners, Inc.* | 280 | 8,347 | ||||||
Chemical Financial Corp. | 290 | 8,085 | ||||||
PacWest Bancorp | 300 | 8,070 | ||||||
PS Business Parks, Inc. | 180 | 8,039 | ||||||
Assured Guaranty Ltd. | 690 | 7,866 |
74 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Brookline Bancorp, Inc. | 719 | $ | 7,657 | |||||
Harleysville National Corp. | 530 | 7,653 | ||||||
Safety Insurance Group, Inc. | 200 | 7,612 | ||||||
Investors Real Estate Trust | 710 | 7,604 | ||||||
Ares Capital Corp. | 1,190 | 7,533 | ||||||
Cousins Properties, Inc. | 540 | 7,479 | ||||||
Capstead Mortgage Corp. | 690 | 7,431 | ||||||
National Health Investors, Inc. | 270 | 7,406 | ||||||
KBW, Inc.* | 316 | 7,268 | ||||||
Investors Bancorp, Inc.* | 540 | 7,252 | ||||||
Financial Federal Corp. | 310 | 7,214 | ||||||
Ezcorp, Inc. — Class A* | 470 | 7,149 | ||||||
Anworth Mortgage Asset Corp. | 1,100 | 7,073 | ||||||
Equity One, Inc. | 399 | 7,062 | ||||||
optionsXpress Holdings, Inc. | 520 | 6,947 | ||||||
Tower Group, Inc. | 246 | 6,940 | ||||||
City Holding Co. | 198 | 6,886 | ||||||
Bank Mutual Corp. | 590 | 6,809 | ||||||
United Community Banks, Inc. | 500 | 6,791 | ||||||
Community Trust Bancorp, Inc. | 180 | 6,615 | ||||||
TowneBank | 260 | 6,445 | ||||||
Portfolio Recovery Associates, Inc.* | 190 | 6,430 | ||||||
Provident New York Bancorp | 490 | 6,076 | ||||||
Wintrust Financial Corp. | 290 | 5,965 | ||||||
Redwood Trust, Inc. | 400 | 5,964 | ||||||
DiamondRock Hospitality Co. | 1,170 | 5,932 | ||||||
National Western Life Insurance Co. — Class A | 35 | 5,921 | ||||||
Chimera Investment Corp. | 1,676 | 5,782 | ||||||
First Financial Corp. | 140 | 5,739 | ||||||
Acadia Realty Trust | 400 | 5,708 | ||||||
First Financial Bancorp | 460 | 5,699 | ||||||
SWS Group, Inc. | 300 | 5,685 | ||||||
First Busey Corp. | 310 | 5,654 | ||||||
Sterling Savings Bank | 640 | 5,632 | ||||||
LTC Properties, Inc. | 276 | 5,597 | ||||||
Castlepoint Holdings Ltd. | 410 | 5,560 | ||||||
Harleysville Group, Inc. | 160 | 5,557 | ||||||
Sterling Bancshares, Inc. | 900 | 5,472 | ||||||
LaSalle Hotel Properties | 490 | 5,414 | ||||||
Hilltop Holdings, Inc.* | 550 | 5,357 | ||||||
Pico Holdings, Inc.* | 200 | 5,316 | ||||||
Univest Corp. of Pennsylvania | 165 | 5,303 | ||||||
Independent Bank Corp. | 200 | 5,232 | ||||||
Medical Properties Trust Inc. | 820 | 5,174 | ||||||
Colonial BancGroup, Inc. | 2,480 | 5,134 | ||||||
State Auto Financial Corp. | 170 | 5,110 | ||||||
Hatteras Financial Corp. | 190 | 5,054 | ||||||
Universal Health Realty Income Trust | 150 | 4,936 | ||||||
Stewart Information Services Corp. | 210 | 4,933 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Simmons First National Corp. | 167 | $ | 4,921 | |||||
First Merchants Corp. | 220 | 4,886 | ||||||
Banco Latinoamericano de Exportaciones SA | 340 | 4,882 | ||||||
Alexander’s, Inc. | 19 | 4,843 | ||||||
Colonial Properties Trust | 580 | 4,831 | ||||||
SCBT Financial Corp. | 140 | 4,830 | ||||||
Bancfirst Corp. | 90 | 4,763 | ||||||
Saul Centers, Inc. | 120 | 4,740 | ||||||
StellarOne Corp. | 280 | 4,732 | ||||||
Amerisafe, Inc.* | 230 | 4,722 | ||||||
American Equity Investment Life Holding Co. | 670 | 4,690 | ||||||
Lexington Realty Trust | 930 | 4,650 | ||||||
Berkshire Hills Bancorp, Inc. | 150 | 4,629 | ||||||
American Physicians Capital, Inc. | 96 | 4,618 | ||||||
Phoenix Companies, Inc. | 1,410 | 4,611 | ||||||
Citizens Banking Corp. | 1,547 | 4,610 | ||||||
FPIC Insurance Group, Inc.* | 105 | 4,597 | ||||||
Horace Mann Educators Corp. | 500 | 4,595 | ||||||
Ambac Financial Group, Inc. | 3,530 | 4,589 | ||||||
First Cash Financial Services, Inc.* | 240 | 4,574 | ||||||
Boston Private Financial Holdings, Inc. | 667 | 4,562 | ||||||
Greenlight Capital Re Ltd. — Class A* | 350 | 4,546 | ||||||
Texas Capital Bancshares, Inc.* | 340 | 4,542 | ||||||
Beneficial Mutual Bancorp, Inc.* | 400 | 4,500 | ||||||
Northwest Bancorp, Inc. | 210 | 4,490 | ||||||
Citizens, Inc.* | 460 | 4,462 | ||||||
Enstar Group* | 75 | 4,435 | ||||||
Getty Realty Corp. | 210 | 4,423 | ||||||
SY Bancorp, Inc. | 160 | 4,400 | ||||||
Renasant Corp. | 258 | 4,394 | ||||||
Meadowbrook Insurance Group, Inc. | 680 | 4,379 | ||||||
Crawford & Co. — Class B* | 300 | 4,362 | ||||||
Bank of the Ozarks, Inc. | 147 | 4,357 | ||||||
Sandy Spring Bancorp, Inc. | 198 | 4,322 | ||||||
Home Bancshares, Inc. | 160 | 4,312 | ||||||
Suffolk Bancorp | 120 | 4,312 | ||||||
Prospect Capital Corp. | 360 | 4,309 | ||||||
1st Source Corp. | 180 | 4,253 | ||||||
Triko Bancshares | 170 | 4,245 | ||||||
Capital Southwest Corp. | 39 | 4,218 | ||||||
Union Bankshares Corp. | 170 | 4,216 | ||||||
Forestar Real Estate Group, Inc.* | 440 | 4,189 | ||||||
eHealth, Inc.* | 307 | 4,077 | ||||||
Tompkins Financial Corp. | 70 | 4,056 | ||||||
First Industrial Realty Trust, Inc. | 537 | 4,054 | ||||||
Ocwen Financial Corp.* | 440 | 4,039 | ||||||
Westfield Financial, Inc. | 390 | 4,025 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 75 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CNA Surety Corp.* | 208 | $ | 3,994 | |||||
Urstadt Biddle Properties, Inc. | 250 | 3,982 | ||||||
Provident Bankshares Corp. | 410 | 3,961 | ||||||
World Acceptance Corp.* | 197 | 3,893 | ||||||
MainSource Financial Group, Inc. | 250 | 3,875 | ||||||
Riskmetrics Group, Inc.* | 260 | 3,871 | ||||||
Dime Community Bancshares | 290 | 3,857 | ||||||
South Financial Group, Inc. | 890 | 3,845 | ||||||
WSFS Financial Corp. | 80 | 3,839 | ||||||
Sunstone Hotel Investors, Inc. | 600 | 3,714 | ||||||
Capital City Bank Group, Inc. | 136 | 3,705 | ||||||
First Community Bancshares, Inc. | 106 | 3,696 | ||||||
Radian Group, Inc. | 990 | 3,643 | ||||||
Flagstone Reinsurance Holdings | 370 | 3,615 | ||||||
thinkorswim Group, Inc.* | 637 | 3,580 | ||||||
Lakeland Financial Corp. | 150 | 3,573 | ||||||
Southside Bancshares, Inc. | 150 | 3,525 | ||||||
Central Pacific Financial Corp. | 350 | 3,514 | ||||||
Tejon Ranch Co.* | 140 | 3,464 | ||||||
Parkway Properties, Inc. | 190 | 3,420 | ||||||
Washington Trust Bancorp, Inc. | 170 | 3,357 | ||||||
Cedar Shopping Centers, Inc. | 470 | 3,328 | ||||||
First Bancorp | 180 | 3,303 | ||||||
United Financial Bancorp, Inc. | 218 | 3,301 | ||||||
Heartland Financial USA, Inc. | 160 | 3,294 | ||||||
MVC Capital, Inc. | 300 | 3,291 | ||||||
Compass Diversified Trust | 290 | 3,262 | ||||||
BancTrust Financial Group, Inc. | 218 | 3,218 | ||||||
Pennsylvania Real Estate Investment Trust | 430 | 3,203 | ||||||
Hercules Technology Growth Capital, Inc. | 400 | 3,168 | ||||||
First Potomac Realty Trust | 340 | 3,162 | ||||||
Nelnet, Inc. — Class A | 218 | 3,124 | ||||||
Flushing Financial Corp. | 260 | 3,110 | ||||||
MarketAxess Holdings, Inc.* | 380 | 3,101 | ||||||
Dollar Financial Corp.* | 300 | 3,090 | ||||||
Sterling Bancorp | 218 | 3,059 | ||||||
Life Partners Holdings, Inc. | 70 | 3,055 | ||||||
SeaBright Insurance Holdings, Inc.* | 260 | 3,052 | ||||||
LaBranche & Company, Inc.* | 630 | 3,018 | ||||||
Republic Bancorp, Inc. | 110 | 2,992 | ||||||
United America Indemnity Ltd. — Class A* | 230 | 2,946 | ||||||
Guaranty Financial Group, Inc.* | 1,120 | 2,923 | ||||||
Danvers Bancorp, Inc. | 217 | 2,901 | ||||||
GFI Group, Inc. | 810 | 2,867 | ||||||
Consolidated-Tomoka Land Co. | 75 | 2,864 | ||||||
First Financial Holdings, Inc. | 140 | 2,834 | ||||||
Sun Communities, Inc. | 200 | 2,800 | ||||||
Peapack Gladstone Financial Corp. | 105 | 2,797 | ||||||
Kearny Financial Corp. | 218 | 2,790 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Abington Bancorp, Inc. | 300 | $ | 2,775 | |||||
Lakeland Bancorp, Inc. | 246 | 2,770 | ||||||
Arrow Financial Corp. | 110 | 2,765 | ||||||
PMA Capital Corp.* | 390 | 2,761 | ||||||
Nara Bancorp, Inc. | 280 | 2,752 | ||||||
Aircastle Ltd. | 570 | 2,725 | ||||||
Western Alliance Bancorp, Inc.* | 270 | 2,724 | ||||||
U-Store-It Trust | 610 | 2,714 | ||||||
Northfield Bancorp, Inc. | 240 | 2,700 | ||||||
Presidential Life Corp. | 270 | 2,670 | ||||||
NorthStar Realty Finance Corp. | 680 | 2,659 | ||||||
ESSA Bancorp, Inc. | 187 | 2,642 | ||||||
Columbia Banking Systems, Inc. | 220 | 2,625 | ||||||
First Financial Northwest, Inc. | 280 | 2,615 | ||||||
Kansas City Life Insurance Co. | 60 | 2,601 | ||||||
TradeStation Group, Inc.* | 400 | 2,580 | ||||||
West Bancorporation, Inc. | 210 | 2,572 | ||||||
First Mercury Financial Corp.* | 180 | 2,567 | ||||||
FBL Financial Group, Inc. — Class A | 165 | 2,549 | ||||||
Frontier Financial Corp. | 580 | 2,529 | ||||||
Oritani Financial Corp.* | 150 | 2,527 | ||||||
Peoples Bancorp, Inc. | 130 | 2,487 | ||||||
American Capital Agency Corp. | 116 | 2,478 | ||||||
BankFinancial Corp. | 240 | 2,446 | ||||||
GAMCO Investors, Inc. — Class A | 89 | 2,431 | ||||||
Camden National Corp. | 90 | 2,428 | ||||||
Donegal Group, Inc. — Class A | 140 | 2,348 | ||||||
Southwest Bancorp, Inc. | 180 | 2,333 | ||||||
Shore Bancshares, Inc. | 96 | 2,303 | ||||||
Cohen & Steers, Inc. | 206 | 2,264 | ||||||
NGP Capital Resources Co. | 270 | 2,260 | ||||||
ViewPoint Financial Group | 140 | 2,247 | ||||||
CoBiz Financial, Inc. | 230 | 2,240 | ||||||
First Bancorp, Inc. | 110 | 2,188 | ||||||
Amtrust Financial Services, Inc. | 188 | 2,181 | ||||||
Citizens & Northern Corp. | 110 | 2,172 | ||||||
Green Bankshares, Inc. | 160 | 2,166 | ||||||
Wilshire Bancorp, Inc. | 238 | 2,161 | ||||||
Enterprise Financial Services Corp. | 140 | 2,134 | ||||||
Ames National Corp. | 80 | 2,123 | ||||||
Gladstone Capital Corp. | 260 | 2,103 | ||||||
Ameris Bancorp | 170 | 2,014 | ||||||
Baldwind & Lyons, Inc. — Class B | 110 | 2,001 | ||||||
Yadkin Valley Financial Corp. | 140 | 1,995 | ||||||
RAIT Financial Trust | 760 | 1,976 | ||||||
Old Second Bancorp, Inc. | 170 | 1,972 | ||||||
Farmers Capital Bank Corp. | 80 | 1,954 | ||||||
Diamond Hill Investment Group, Inc. | 30 | 1,950 | ||||||
The PMI Group, Inc. | 1,000 | 1,950 |
76 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Pacific Continental Corp. | 130 | $ | 1,946 | �� | ||||
Maiden Holdings Ltd. | 600 | 1,878 | ||||||
Smithtown Bancorp, Inc. | 117 | 1,876 | ||||||
Westwood Holdings Group, Inc. | 66 | 1,875 | ||||||
Sierra Bancorp | 89 | 1,869 | ||||||
Centerstate Banks of Florida, Inc. | 110 | 1,869 | ||||||
Financial Institutions, Inc. | 130 | 1,865 | ||||||
Avatar Holdings Inc.* | 70 | 1,856 | ||||||
Calamos Asset Management, Inc. — Class A | 250 | 1,850 | ||||||
Mission West Properties | 240 | 1,836 | ||||||
Cascade Bancorp. | 270 | 1,822 | ||||||
Oriental Financial Group | 300 | 1,815 | ||||||
Agree Realty Corp. | 100 | 1,813 | ||||||
Education Realty Trust, Inc. | 347 | 1,811 | ||||||
EMC Insurance Group, Inc. | 70 | 1,795 | ||||||
Hersha Hospitality Trust | 590 | 1,770 | ||||||
Oceanfirst Financial Corp. | 106 | 1,760 | ||||||
State Bancorp, Inc. | 180 | 1,753 | ||||||
American Safety Insurance Holdings Ltd.* | 130 | 1,717 | ||||||
Cardinal Financial Corp. | 298 | 1,696 | ||||||
Banner Corp. | 180 | 1,694 | ||||||
Monmouth Real Estate | ||||||||
Investment Corp. — Class A | 240 | 1,680 | ||||||
Bryn Mawr Bank Corp. | 80 | 1,608 | ||||||
Associated Estates Realty Corp. | 176 | 1,607 | ||||||
Premierwest Bancorp | 240 | 1,606 | ||||||
Anthracite Capital, Inc. | 718 | 1,601 | ||||||
Penson Worldwide Company, Inc.* | 210 | 1,600 | ||||||
Kite Realty Group Trust | 286 | 1,590 | ||||||
BlackRock Kelso Capital Corp. | 160 | 1,578 | ||||||
Pennsylvania Commerce Bancorp, Inc.* | 59 | 1,573 | ||||||
Clifton Savings Bancorp, Inc. | 130 | 1,542 | ||||||
Rockville Financial, Inc. | 110 | 1,537 | ||||||
Strategic Hotels & Resorts, Inc. | 910 | 1,529 | ||||||
FBR Capital Markets Corp.* | 310 | 1,507 | ||||||
Evercore Partners, Inc. — Class A | 120 | 1,499 | ||||||
National Financial Partners Corp. | 490 | 1,490 | ||||||
Winthrop Realty Trust | 136 | 1,474 | ||||||
Heritage Commerce Corp. | 130 | 1,461 | ||||||
Sanders Morris Harris Group Inc. | 240 | 1,438 | ||||||
National Interstate Corp. | 80 | 1,430 | ||||||
FelCor Lodging Trust, Inc. | 770 | 1,417 | ||||||
Cogdell Spencer, Inc. | 150 | 1,404 | ||||||
Capitol Bancorp, Ltd. | 180 | 1,404 | ||||||
Roma Financial Corp. | 110 | 1,385 | ||||||
Medallion Financial Corp. | 180 | 1,373 | ||||||
Sun Bancorp, Inc.* | 180 | 1,348 | ||||||
Gladstone Investment Corp. | 270 | 1,326 | ||||||
Ashford Hospitality Trust, Inc. | 1,140 | 1,311 | ||||||
Guaranty Bancorp* | 650 | 1,300 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Glimcher Realty Trust | 460 | $ | 1,293 | |||||
Harris & Harris Group, Inc.* | 320 | 1,264 | ||||||
First South Bancorp, Inc. | 100 | 1,256 | ||||||
FCStone Group, Inc.* | 280 | 1,240 | ||||||
West Coast Bancorp | 186 | 1,226 | ||||||
Encore Capital Group, Inc.* | 170 | 1,224 | ||||||
Care Investment Trust, Inc. | 157 | 1,223 | ||||||
Meridian Interstate Bancorp, Inc.* | 130 | 1,202 | ||||||
Seacoast Banking | ||||||||
Corporation of Florida | 180 | 1,188 | ||||||
Ramco-Gershenson | ||||||||
Properties Trust | 190 | 1,174 | ||||||
NewStar Financial, Inc.* | 290 | 1,157 | ||||||
Thomas Weisel Partners Group, Inc.* | 240 | 1,133 | ||||||
BGC Partners, Inc. — Class A | 409 | 1,129 | ||||||
United Security Bancshares | 96 | 1,112 | ||||||
CompuCredit Corp.* | 200 | 1,106 | ||||||
First Marblehead Corp.* | 847 | 1,093 | ||||||
NASB Financial, Inc. | 40 | 1,080 | ||||||
Epoch Holding Corp. | 140 | 1,063 | ||||||
Stratus Properties, Inc.* | 80 | 997 | ||||||
Resource Capital Corp. | 260 | 996 | ||||||
Advanta Corp. | 470 | 982 | ||||||
Advance America Cash Advance Centers, Inc. | 510 | 964 | ||||||
Credit Acceptance Corp.* | 70 | 959 | ||||||
NYMAGIC, Inc. | 50 | 953 | ||||||
Ladenburg Thalmann Financial Services, Inc.* | 1,319 | 950 | ||||||
Hanmi Financial Corp. | 460 | 948 | ||||||
CapLease, Inc. | 547 | 946 | ||||||
PennantPark Investment Corp. | 260 | 939 | ||||||
Asset Acceptance Capital Corp.* | 180 | 920 | ||||||
Broadpoint Securities Group, Inc.* | 308 | 915 | ||||||
Patriot Capital Funding, Inc. | 250 | 910 | ||||||
Fifth Street Finance Corp. | 120 | 906 | ||||||
Amcore Financial, Inc. | 250 | 905 | ||||||
Kayne Anderson Energy Development Co. | 120 | 901 | ||||||
City Bank | 170 | 884 | ||||||
Encore Bancshares, Inc.* | 80 | 880 | ||||||
Fox Chase Bancorp, Inc.* | 80 | 880 | ||||||
One Liberty Properties, Inc. | 100 | 880 | ||||||
Home Federal Bancorp, Inc. | 80 | 858 | ||||||
Maui Land & Pineapple Company, Inc.* | 60 | 806 | ||||||
First Place Financial Corp. | 210 | 804 | ||||||
US Global Investors, Inc. — Class A | 160 | 782 | ||||||
Thomas Properties Group, Inc. | 290 | 751 | ||||||
Kohlberg Capital Corp. | 206 | 750 | ||||||
Capital Trust, Inc. — Class A | 199 | 716 | ||||||
Maguire Properties, Inc.* | 470 | 686 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 77 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
MCG Capital Corp. | 930 | $ | 660 | |||||
Meruelo Maddux Properties, Inc.* | 530 | 657 | ||||||
Gramercy Capital Corp. | 510 | 653 | ||||||
Anchor BanCorp Wisconsin, Inc. | 230 | 635 | ||||||
Santander BanCorp | 50 | 625 | ||||||
Hallmark Financial Services, Inc.* | 70 | 614 | ||||||
First Acceptance Corp.* | 206 | 597 | ||||||
Brooklyn Federal Bancorp, Inc. | 40 | 562 | ||||||
Newcastle Investment Corp. | 650 | 546 | ||||||
Grubb & Ellis Co. | 430 | 533 | ||||||
Flagstar Bancorp, Inc.* | 740 | 525 | ||||||
Doral Financial Corp.* | 70 | 525 | ||||||
Corus Bankshares, Inc. | 457 | 507 | ||||||
Arbor Realty Trust, Inc. | 170 | 502 | ||||||
Resource America, Inc. — Class A | 117 | 468 | ||||||
International Assets Holding Corp.* | 50 | 429 | ||||||
Federal Agricultural Mortgage Corp. | 120 | 420 | ||||||
Midwest Banc Holdings, Inc. | 270 | 378 | ||||||
W Holding Company, Inc. | 35 | 361 | ||||||
Integra Bank Corp. | 250 | 343 | ||||||
Pzena Investment Management, Inc. — Class A | 80 | 338 | ||||||
Primus Guaranty Ltd.* | 290 | 331 | ||||||
DuPont Fabros Technology, Inc. | 150 | 311 | ||||||
Friedman Billings Ramsey Group, Inc. — Class A* | 1,820 | 309 | ||||||
Waterstone Financial, Inc.* | 90 | 302 | ||||||
United Community Financial Corp. | 331 | 298 | ||||||
FirstFed Financial Corp.* | 170 | 298 | ||||||
Independence Holding Co. | 80 | 289 | ||||||
JER Investors Trust, Inc. | 280 | 260 | ||||||
Cardtronics, Inc.* | 160 | 206 | ||||||
Ampal American Israel — Class A* | 240 | 139 | ||||||
FX Real Estate and Entertainment, Inc.* | 130 | 20 | ||||||
Total Financials | 2,155,838 | |||||||
INDUSTRIALS 11.1% | ||||||||
Waste Connections, Inc.* | 983 | 31,033 | ||||||
Watson Wyatt & Company Holdings | 520 | 24,866 | ||||||
Wabtec Corp. | 600 | 23,850 | ||||||
Clarcor, Inc. | 620 | 20,572 | ||||||
Teledyne Technologies, Inc.* | 440 | 19,602 | ||||||
Moog, Inc. — Class A* | 520 | 19,016 | ||||||
EMCOR Group, Inc.* | 830 | 18,617 | ||||||
Curtiss-Wright Corp. | 547 | 18,264 | ||||||
Granite Construction, Inc. | 410 | 18,011 | ||||||
Acuity Brands, Inc. | 500 | 17,455 | ||||||
Tetra Tech, Inc.* | 720 | 17,388 |
MARKET | ||||||||
SHARES | VALUE | |||||||
UAL Corp. | 1,550 | $ | 17,081 | |||||
Woodward Governor Co. | 720 | 16,574 | ||||||
Clean Harbors, Inc.* | 240 | 15,226 | ||||||
Regal-Beloit Corp. | 400 | 15,196 | ||||||
JetBlue Airways Corp.* | 2,130 | 15,123 | ||||||
Huron Consulting Group, Inc.* | 260 | 14,890 | ||||||
Brady Corp. — Class A | 620 | 14,849 | ||||||
Perini Corp.* | 620 | 14,496 | ||||||
Kaydon Corp. | 417 | 14,324 | ||||||
Orbital Sciences Corp.* | 720 | 14,062 | ||||||
Energy Conversion Devices, Inc.* | 550 | 13,865 | ||||||
TransDigm Group, Inc.* | 410 | 13,764 | ||||||
Esterline Technologies Corp.* | 360 | 13,640 | ||||||
SkyWest, Inc. | 720 | 13,392 | ||||||
Nordson Corp. | 410 | 13,239 | ||||||
Actuant Corp. — Class A | 690 | 13,124 | ||||||
ESCO Technologies, Inc.* | 320 | 13,104 | ||||||
Alaska Air Group, Inc.* | 440 | 12,870 | ||||||
Simpson Manufacturing Company, Inc. | 460 | 12,770 | ||||||
GrafTech International Ltd.* | 1,470 | 12,230 | ||||||
HUB Group, Inc. — Class A* | 450 | 11,938 | ||||||
Mueller Water Products, Inc. — Class A | 1,420 | 11,928 | ||||||
Belden, Inc. | 570 | 11,902 | ||||||
Genesee & Wyoming, Inc. — Class A* | 380 | 11,590 | ||||||
Mueller Industries, Inc. | 457 | 11,462 | ||||||
Geo Group, Inc.* | 630 | 11,359 | ||||||
Knight Transportation, Inc. | 700 | 11,284 | ||||||
Watsco, Inc. | 287 | 11,021 | ||||||
Heartland Express, Inc. | 690 | 10,874 | ||||||
US Airways Group, Inc.* | 1,400 | 10,822 | ||||||
Briggs & Stratton Corp. | 610 | 10,730 | ||||||
Heico Corp. | 270 | 10,484 | ||||||
ABM Industries, Inc. | 540 | 10,287 | ||||||
Baldor Electric Co. | 570 | 10,174 | ||||||
Otter Tail Power Co. | 430 | 10,032 | ||||||
Applied Industrial Technologies, Inc. | 520 | 9,838 | ||||||
Old Dominion Freight Line, Inc.* | 340 | 9,676 | ||||||
United Stationers, Inc.* | 287 | 9,612 | ||||||
Deluxe Corp. | 630 | 9,425 | ||||||
Navigant Consulting, Inc.* | 590 | 9,363 | ||||||
Rollins, Inc. | 510 | 9,221 | ||||||
Resources Connection, Inc.* | 560 | 9,173 | ||||||
Mine Safety Appliances Co. | 380 | 9,086 | ||||||
Herman Miller, Inc. | 690 | 8,991 | ||||||
Watts Industries, Inc. — Class A | 360 | 8,989 | ||||||
Werner Enterprises, Inc. | 517 | 8,965 | ||||||
AAR Corp.* | 479 | 8,818 | ||||||
MPS Group, Inc.* | 1,160 | 8,735 | ||||||
Hexcel Corp.* | 1,180 | 8,720 |
78 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
HNI Corp. | 550 | $ | 8,712 | |||||
Barnes Group, Inc. | 590 | 8,555 | ||||||
Forward Air Corp. | 350 | 8,494 | ||||||
American Superconductor Corp.* | 520 | 8,481 | ||||||
Healthcare Services Group | 530 | 8,443 | ||||||
Arkansas Best Corp. | 280 | 8,431 | ||||||
Triumph Group, Inc. | 198 | 8,407 | ||||||
Allegiant Travel Co.* | 170 | 8,257 | ||||||
American Science & Engineering, Inc. | 110 | 8,136 | ||||||
CoStar Group, Inc.* | 240 | 7,906 | ||||||
Franklin Electric Company, Inc. | 280 | 7,871 | ||||||
SYKES Enterprises, Inc.* | 410 | 7,839 | ||||||
Beacon Roofing Supply, Inc.* | 538 | 7,467 | ||||||
A.O. Smith Corp. | 250 | 7,380 | ||||||
Ameron International Corp. | 110 | 6,921 | ||||||
Astec Industries, Inc.* | 219 | 6,861 | ||||||
Insituform Technologies, Inc. — Class A* | 340 | 6,695 | ||||||
General Maritime Corp. | 604 | 6,523 | ||||||
Korn/Ferry International, Inc.* | 570 | 6,509 | ||||||
Ceradyne, Inc.* | 320 | 6,499 | ||||||
AirTran Holdings, Inc.* | 1,440 | 6,394 | ||||||
Team, Inc.* | 230 | 6,371 | ||||||
Mobile Mini, Inc.* | 430 | 6,201 | ||||||
Mcgrath Rentcorp | 290 | 6,194 | ||||||
Viad Corp. | 250 | 6,185 | ||||||
Mastec, Inc.* | 530 | 6,137 | ||||||
Axsys Technologies, Inc.* | 110 | 6,035 | ||||||
Circor International, Inc. | 210 | 5,775 | ||||||
Layne Christensen Co.* | 240 | 5,762 | ||||||
II-VI, Inc.* | 300 | 5,727 | ||||||
Middleby Corp.* | 210 | 5,727 | ||||||
Administaff, Inc. | 260 | 5,637 | ||||||
Kaman Corp. — Class A | 310 | 5,620 | ||||||
Evergreen Solar, Inc.* | 1,760 | 5,614 | ||||||
Gorman-Rupp Co. | 180 | 5,602 | ||||||
Robbins & Myers, Inc. | 340 | 5,498 | ||||||
RBC Bearings, Inc.* | 270 | 5,476 | ||||||
Tredegar Corp. | 300 | 5,454 | ||||||
Knoll, Inc. | 600 | 5,412 | ||||||
Universal Forest Products, Inc. | 198 | 5,328 | ||||||
EnPro Industries, Inc.* | 246 | 5,299 | ||||||
Badger Meter, Inc. | 180 | 5,224 | ||||||
Comfort Systems USA, Inc. | 490 | 5,223 | ||||||
Cubic Corp. | 190 | 5,168 | ||||||
TrueBlue, Inc.* | 537 | 5,139 | ||||||
Exponent, Inc.* | 170 | 5,114 | ||||||
Griffon Corp.* | 540 | 5,038 | ||||||
Force Protection, Inc.* | 838 | 5,011 | ||||||
RSC Holdings, Inc.* | 580 | 4,942 | ||||||
G & K Services, Inc. — Class A | 240 | 4,853 | ||||||
Federal Signal Corp. | 590 | 4,844 | ||||||
Raven Industries, Inc. | 200 | 4,820 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Aerovironment, Inc.* | 130 | $ | 4,785 | |||||
Lindsay Manufacturing Co. | 150 | 4,768 | ||||||
CBIZ, Inc.* | 550 | 4,757 | ||||||
Northwest Pipe Co.* | 110 | 4,687 | ||||||
Albany International Corp. — Class A | 360 | 4,622 | ||||||
Republic Airways Holdings, Inc.* | 430 | 4,588 | ||||||
DynCorp International, Inc. — Class A* | 298 | 4,521 | ||||||
Pacer International, Inc. | 430 | 4,485 | ||||||
Heidrick & Struggles International, Inc. | 208 | 4,480 | ||||||
Blount International, Inc.* | 470 | 4,456 | ||||||
Genco Shipping & Trading Ltd. | 300 | 4,440 | ||||||
School Specialty, Inc.* | 230 | 4,398 | ||||||
Advisory Board Co.* | 196 | 4,371 | ||||||
Quanex Building Products Corp. | 457 | 4,282 | ||||||
Interline Brands, Inc.* | 400 | 4,252 | ||||||
GeoEye, Inc.* | 218 | 4,192 | ||||||
Encore Wire Corp. | 220 | 4,171 | ||||||
Kelly Services, Inc. — Class A | 319 | 4,150 | ||||||
Amerco, Inc.* | 120 | 4,144 | ||||||
LB Foster Co. — Class A* | 130 | 4,066 | ||||||
Taser International, Inc.* | 770 | 4,066 | ||||||
American Ecology Corp. | 200 | 4,046 | ||||||
Dycom Industries, Inc.* | 490 | 4,028 | ||||||
Gibraltar Industries, Inc. | 330 | 3,940 | ||||||
NCI Building Systems, Inc.* | 240 | 3,912 | ||||||
Eagle Bulk Shipping Inc. | 570 | 3,887 | ||||||
Ennis Inc. | 319 | 3,863 | ||||||
Stanley, Inc.* | 106 | 3,839 | ||||||
ATC Technology Corp.* | 260 | 3,804 | ||||||
CRA International, Inc.* | 140 | 3,770 | ||||||
AZZ, Inc.* | 150 | 3,765 | ||||||
EnerSys* | 340 | 3,740 | ||||||
Apogee Enterprises, Inc. | 360 | 3,730 | ||||||
Chart Industries, Inc.* | 346 | 3,678 | ||||||
Marten Transport Ltd.* | 190 | 3,602 | ||||||
Ener1, Inc.* | 500 | 3,575 | ||||||
Rush Enterprises, Inc. — Class A* | 410 | 3,514 | ||||||
Titan International, Inc. | 420 | 3,465 | ||||||
Hawaiian Holdings, Inc.* | 530 | 3,381 | ||||||
Kimball International, Inc. — Class B | 390 | 3,358 | ||||||
AAON, Inc. | 160 | 3,341 | ||||||
Michael Baker Corp.* | 89 | 3,285 | ||||||
FuelCell Energy, Inc.* | 840 | 3,259 | ||||||
Cascade Corp. | 106 | 3,165 | ||||||
Trex Company, Inc.* | 190 | 3,127 | ||||||
Columbus McKinnon Corp. — Class A* | 229 | 3,126 | ||||||
American Reprographics Co.* | 450 | 3,105 | ||||||
Interface, Inc. — Class A | 660 | 3,062 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 79 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Tennant Co. | 198 | $ | 3,049 | |||||
Argon ST, Inc.* | 160 | 3,018 | ||||||
Aceto Corp. | 300 | 3,003 | ||||||
Standex International Corp. | 150 | 2,976 | ||||||
Atlas Air Worldwide Holdings Company, Inc.* | 157 | 2,967 | ||||||
Dynamic Materials Corp. | 150 | 2,896 | ||||||
Kforce, Inc.* | 377 | 2,895 | ||||||
Colfax Corp.* | 270 | 2,805 | ||||||
Ladish Co., Inc.* | 200 | 2,770 | ||||||
Freightcar America, Inc. | 150 | 2,740 | ||||||
Applied Signal Technology, Inc. | 150 | 2,691 | ||||||
DHT Maritime, Inc. | 480 | 2,659 | ||||||
Sun Hydraulics Corp. | 140 | 2,638 | ||||||
Consolidated Graphics, Inc.* | 116 | 2,626 | ||||||
Cenveo, Inc.* | 590 | 2,625 | ||||||
NACCO Industries, Inc. — Class A | 70 | 2,619 | ||||||
Powell Industries, Inc.* | 90 | 2,612 | ||||||
Orion Marine Group, Inc.* | 270 | 2,608 | ||||||
Cornell Companies, Inc.* | 140 | 2,603 | ||||||
Sterling Construction Company, Inc.* | 140 | 2,596 | ||||||
Pike Electric Corp.* | 210 | 2,583 | ||||||
Gencorp, Inc.* | 700 | 2,576 | ||||||
Innerworkings, Inc.* | 390 | 2,555 | ||||||
TAL International Group, Inc. | 180 | 2,538 | ||||||
Altra Holdings, Inc.* | 320 | 2,531 | ||||||
On Assignment, Inc.* | 440 | 2,495 | ||||||
Duff & Phelps Corp. — Class A* | 130 | 2,486 | ||||||
Fuel Tech, Inc.* | 230 | 2,436 | ||||||
Furmanite Corp.* | 450 | 2,426 | ||||||
Met-Pro Corp. | 180 | 2,398 | ||||||
K-Tron International, Inc.* | 30 | 2,397 | ||||||
American Woodmark Corp. | 130 | 2,370 | ||||||
Insteel Industries, Inc. | 208 | 2,348 | ||||||
Courier Corp. | 130 | 2,327 | ||||||
EnergySolutions, Inc. | 410 | 2,317 | ||||||
ACCO Brands Corp.* | 670 | 2,312 | ||||||
Celadon Group, Inc.* | 270 | 2,303 | ||||||
Ampco-Pittsburgh Corp. | 105 | 2,279 | ||||||
Schawk, Inc. | 190 | 2,177 | ||||||
Ducommun, Inc. | 130 | 2,171 | ||||||
M&F Worldwide Corp.* | 140 | 2,163 | ||||||
Teekay Tankers Ltd. | 170 | 2,159 | ||||||
American Commercial Lines, Inc.* | 440 | 2,156 | ||||||
LaBarge, Inc.* | 150 | 2,153 | ||||||
Kadant, Inc.* | 157 | 2,116 | ||||||
Herley Industries, Inc.* | 170 | 2,088 | ||||||
LECG Corp.* | 310 | 2,080 | ||||||
Multi-Color Corp. | 130 | 2,057 | ||||||
Odyssey Marine Exploration, Inc.* | 637 | 2,051 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Hill International, Inc.* | 290 | $ | 2,042 | |||||
Great Lakes Dredge & Dock Corp. Co. | 490 | 2,034 | ||||||
Houston Wire & Cable Co. | 217 | 2,020 | ||||||
Ultralife Batteries, Inc.* | 150 | 2,012 | ||||||
YRC Worldwide, Inc.* | 700 | 2,009 | ||||||
ICF International, Inc.* | 80 | 1,966 | ||||||
VSE Corp. | 50 | 1,962 | ||||||
Bowne & Company, Inc. | 330 | 1,940 | ||||||
Standard Parking Corp.* | 100 | 1,934 | ||||||
Tecumseh Products Company — Class A* | 200 | 1,916 | ||||||
Waste Services Inc.* | 290 | 1,908 | ||||||
CDI Corp. | 147 | 1,902 | ||||||
Saia, Inc.* | 170 | 1,846 | ||||||
First Advantage Corp. — Class A* | 130 | 1,840 | ||||||
Capstone Turbine Corp.* | 2,140 | 1,798 | ||||||
International Shipholding Corp. | 70 | 1,773 | ||||||
3D Systems Corp.* | 217 | 1,723 | ||||||
Wabash National Corp. | 380 | 1,710 | ||||||
Dynamex, Inc.* | 110 | 1,623 | ||||||
Standard Register Co. | 180 | 1,607 | ||||||
Vicor Corp. | 240 | 1,586 | ||||||
LSI Industries, Inc. | 230 | 1,580 | ||||||
PMFG, Inc.* | 159 | 1,520 | ||||||
H&E Equipment Services, Inc.* | 197 | 1,519 | ||||||
Polypore International, Inc.* | 200 | 1,512 | ||||||
Advanced Battery Technologies, Inc.* | 538 | 1,431 | ||||||
Microvision, Inc.* | 840 | 1,411 | ||||||
TurboChef Technologies, Inc.* | 286 | 1,404 | ||||||
Patriot Transportation Holding, Inc.* | 20 | 1,401 | ||||||
Spherion Corp.* | 630 | 1,392 | ||||||
Preformed Line Products Co. | 30 | 1,381 | ||||||
Energy Recovery, Inc.* | 181 | 1,372 | ||||||
Greenbrier Companies, Inc. | 196 | 1,347 | ||||||
TBS International Ltd. — Class A* | 130 | 1,304 | ||||||
Graham Corp. | 120 | 1,298 | ||||||
Horizon Lines, Inc. — Class A | 367 | 1,281 | ||||||
Textainer Group Holdings Ltd. | 120 | 1,272 | ||||||
DXP Enterprises, Inc.* | 87 | 1,271 | ||||||
Titan Machinery, Inc.* | 90 | 1,265 | ||||||
LMI Aerospace, Inc.* | 110 | 1,251 | ||||||
Key Technology, Inc.* | 65 | 1,228 | ||||||
Sauer, Inc. | 140 | 1,225 | ||||||
Valence Technology, Inc.* | 660 | 1,201 | ||||||
Alamo Group, Inc. | 80 | 1,196 | ||||||
American Railcar Industries, Inc. | 110 | 1,158 | ||||||
Volt Information Sciences, Inc.* | 160 | 1,157 | ||||||
Lydall, Inc.* | 200 | 1,150 | ||||||
Lawson Products, Inc. | 50 | 1,143 |
80 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Casella Waste Systems, Inc. — Class A* | 280 | $ | 1,142 | |||||
China Fire & Security Group, Inc.* | 167 | 1,137 | ||||||
Thermadyne Holdings Corp.* | 165 | 1,134 | ||||||
Flow International Corp.* | 459 | 1,111 | ||||||
Power-One, Inc.* | 920 | 1,095 | ||||||
GT Solar International, Inc.* | 370 | 1,069 | ||||||
Hudson Highland Group, Inc.* | 306 | 1,025 | ||||||
Plug Power, Inc.* | 990 | 1,010 | ||||||
Universal Truckload Services, Inc.* | 70 | 991 | ||||||
Hurco Companies, Inc.* | 80 | 960 | ||||||
Fushi Copperweld, Inc.* | 180 | 949 | ||||||
Flanders Corp.* | 199 | 933 | ||||||
Ultrapetrol Bahamas Ltd.* | 277 | 884 | ||||||
Integrated Electrical Services, Inc.* | 100 | 876 | ||||||
EnerNOC, Inc.* | 116 | 863 | ||||||
Omega Flex, Inc. | 40 | 838 | ||||||
Twin Disc, Inc. | 110 | 758 | ||||||
PRG-Schultz International, Inc.* | 180 | 734 | ||||||
Harbin Electric, Inc.* | 90 | 719 | ||||||
PowerSecure International, Inc.* | 210 | 691 | ||||||
China BAK Battery, Inc.* | 400 | 648 | ||||||
Beacon Power Corp.* | 1,190 | 631 | ||||||
Amrep Corp. PLC* | 20 | 626 | ||||||
Park-Ohio Holdings Corp.* | 100 | 617 | ||||||
Orion Energy Systems Inc.* | 110 | 595 | ||||||
China Architectural Engineering, Inc.* | 230 | 566 | ||||||
ICT Group, Inc.* | 106 | 485 | ||||||
Metalico, Inc.* | 298 | 462 | ||||||
Coleman Cable Inc.* | 100 | 453 | ||||||
Akeena Solar, Inc.* | 258 | 444 | ||||||
NN, Inc. | 190 | 435 | ||||||
COMSYS IT Partners, Inc.* | 180 | 403 | ||||||
Protection One, Inc.* | 80 | 382 | ||||||
United Capital Corp.* | 20 | 363 | ||||||
Ascent Solar Technologies, Inc.* | 90 | 338 | ||||||
Builders FirstSource, Inc.* | 200 | 306 | ||||||
Dollar Thrifty Automotive Group, Inc.* | 267 | 291 | ||||||
CAI International, Inc.* | 90 | 285 | ||||||
Trimas Corp.* | 180 | 248 | ||||||
Commercial Vehicle Group, Inc.* | 258 | 240 | ||||||
Xerium Technologies, Inc.* | 260 | 172 | ||||||
Medis Technologies Ltd.* | 380 | 171 | ||||||
China Direct, Inc.* | 80 | 116 | ||||||
Total Industrials | 1,552,712 | |||||||
INFORMATION TECHNOLOGY 10.4% | ||||||||
Sybase, Inc.* | 970 | 24,027 | ||||||
Parametric Technology Corp.* | 1,420 | 17,963 | ||||||
Jack Henry & Associates, Inc. | 920 | 17,857 | ||||||
Concur Technologies, Inc.* | 530 | 17,395 | ||||||
CACI International, Inc. — | ||||||||
Class A* | 370 | 16,683 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Micros Systems, Inc.* | 1,000 | $ | 16,320 | |||||
InterDigital, Inc.* | 560 | 15,400 | ||||||
Solera Holdings, Inc.* | 630 | 15,183 | ||||||
Informatica Corp.* | 1,090 | 14,966 | ||||||
Polycom, Inc.* | 1,080 | 14,591 | ||||||
Perot Systems Corp. — Class A* | 1,060 | 14,490 | ||||||
Comtech Telecommunications Corp.* | 300 | 13,746 | ||||||
Mantech International Corp. — Class A* | 250 | 13,547 | ||||||
PMC — Sierra, Inc.* | 2,690 | 13,073 | ||||||
Gartner, Inc. — Class A* | 730 | 13,016 | ||||||
Macrovision Solutions Corp.* | 1,010 | 12,776 | ||||||
Microsemi Corp.* | 970 | 12,261 | ||||||
Arris Group, Inc.* | 1,510 | 12,004 | ||||||
TIBCO Software, Inc.* | 2,290 | 11,885 | ||||||
Digital River, Inc.* | 458 | 11,358 | ||||||
3Com Corp.* | 4,960 | 11,309 | ||||||
Quest Software, Inc.* | 890 | 11,205 | ||||||
Anixter International, Inc.* | 370 | 11,144 | ||||||
Skyworks Solutions, Inc.* | 2,000 | 11,080 | ||||||
j2 Global Communications, Inc.* | 550 | 11,022 | ||||||
Tekelec* | 800 | 10,672 | ||||||
Benchmark Electronics, Inc.* | 830 | 10,599 | ||||||
Atheros Communications, Inc.* | 730 | 10,446 | ||||||
ADTRAN, Inc. | 690 | 10,267 | ||||||
Infinera Corp.* | 1,140 | 10,214 | ||||||
Cybersource Corp.* | 850 | 10,191 | ||||||
Fair Isaac Corp. | 600 | 10,116 | ||||||
Intermec, Inc.* | 760 | 10,093 | ||||||
VistaPrint Ltd.* | 540 | 10,049 | ||||||
Blackboard, Inc.* | 380 | 9,967 | ||||||
Progress Software Corp.* | 510 | 9,823 | ||||||
Avocent Corp.* | 548 | 9,815 | ||||||
Quality Systems, Inc. | 218 | 9,509 | ||||||
EarthLink, Inc.* | 1,350 | 9,126 | ||||||
MKS Instruments, Inc.* | 610 | 9,022 | ||||||
TiVo, Inc.* | 1,250 | 8,950 | ||||||
SRA International, Inc. — Class A* | 517 | 8,918 | ||||||
Formfactor, Inc.* | 600 | 8,760 | ||||||
Semtech Corp.* | 760 | 8,565 | ||||||
FEI Co.* | 450 | 8,487 | ||||||
Net 1 UEPS Technologies, Inc.* | 610 | 8,357 | ||||||
Plexus Corp.* | 490 | 8,305 | ||||||
Websense, Inc.* | 550 | 8,233 | ||||||
Omniture, Inc.* | 770 | 8,193 | ||||||
Cymer, Inc.* | 370 | 8,107 | ||||||
Plantronics, Inc. | 600 | 7,920 | ||||||
Riverbed Technology, Inc.* | 690 | 7,859 | ||||||
MAXIMUS, Inc. | 220 | 7,724 | ||||||
Data Domain, Inc.* | 410 | 7,708 | ||||||
Wind River Systems, Inc.* | 840 | 7,585 | ||||||
Ariba, Inc.* | 1,050 | 7,570 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 81 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Cabot Microelectronics Corp.* | 290 | $ | 7,560 | |||||
CSG Systems International, Inc.* | 430 | 7,512 | ||||||
ViaSat, Inc.* | 310 | 7,465 | ||||||
Blackbaud, Inc. | 550 | 7,425 | ||||||
Rofin-Sinar Technologies, Inc.* | 360 | 7,409 | ||||||
Power Integrations, Inc. | 370 | 7,356 | ||||||
Emulex Corp.* | 1,040 | 7,259 | ||||||
Cognex Corp. | 490 | 7,252 | ||||||
ValueClick, Inc.* | 1,060 | 7,250 | ||||||
EPIQ Systems, Inc.* | 430 | 7,185 | ||||||
Take-Two Interactive Software, Inc. | 950 | 7,182 | ||||||
Commvault Systems, Inc.* | 530 | 7,107 | ||||||
Hittite Microwave Corp.* | 240 | 7,070 | ||||||
Interwoven, Inc.* | 560 | 7,056 | ||||||
Tessera Technologies, Inc.* | 590 | 7,009 | ||||||
Synaptics, Inc.* | 417 | 6,906 | ||||||
Lawson Software, Inc.* | 1,450 | 6,873 | ||||||
Cogent, Inc.* | 500 | 6,785 | ||||||
Euronet Worldwide, Inc.* | 580 | 6,734 | ||||||
ACI Worldwide, Inc.* | 420 | 6,678 | ||||||
Harmonic, Inc.* | 1,160 | 6,508 | ||||||
Sycamore Networks, Inc.* | 2,350 | 6,321 | ||||||
Coherent, Inc.* | 290 | 6,223 | ||||||
Electronics for Imaging, Inc.* | 647 | 6,185 | ||||||
Scansource, Inc.* | 320 | 6,166 | ||||||
Acxiom Corp. | 749 | 6,074 | ||||||
Triquint Semiconductor, Inc.* | 1,760 | 6,054 | ||||||
Wright Express Corp.* | 480 | 6,048 | ||||||
Rogers Corp.* | 217 | 6,026 | ||||||
ATMI, Inc.* | 390 | 6,018 | ||||||
L-1 Identity Solutions, Inc.* | 889 | 5,992 | ||||||
Bankrate, Inc.* | 157 | 5,966 | ||||||
SPSS, Inc.* | 217 | 5,850 | ||||||
DealerTrack Holdings, Inc.* | 490 | 5,826 | ||||||
MTS Systems Corp. | 218 | 5,808 | ||||||
Mentor Graphics Corp.* | 1,120 | 5,790 | ||||||
United Online, Inc. | 950 | 5,766 | ||||||
Black Box Corp. | 218 | 5,694 | ||||||
Tyler Technologies, Inc.* | 470 | 5,631 | ||||||
Forrester Research, Inc.* | 190 | 5,360 | ||||||
Heartland Payment Systems, Inc. | 300 | 5,250 | ||||||
AsiaInfo Holdings, Inc.* | 430 | 5,091 | ||||||
MercadoLibre, Inc.* | 310 | 5,087 | ||||||
Imation Corp. | 370 | 5,021 | ||||||
Adaptec, Inc.* | 1,490 | 4,917 | ||||||
EMS Technologies, Inc.* | 190 | 4,915 | ||||||
Netgear, Inc.* | 430 | 4,906 | ||||||
Checkpoint Systems, Inc.* | 490 | 4,822 | ||||||
Sapient Corp.* | 1,080 | 4,795 | ||||||
Manhattan Associates, Inc.* | 297 | 4,696 | ||||||
Park Electrochemical Corp. | 246 | 4,664 | ||||||
Netlogic Microsystems, Inc.* | 210 | 4,622 | ||||||
Standard Microsystems Corp.* | 280 | 4,575 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Brooks Automation, Inc.* | 777 | $ | 4,514 | |||||
S1 Corp.* | 570 | 4,497 | ||||||
Littelfuse, Inc.* | 270 | 4,482 | ||||||
Micrel, Inc. | 610 | 4,459 | ||||||
Ultimate Software Group, Inc.* | 300 | 4,380 | ||||||
Starent Networks Corp.* | 367 | 4,378 | ||||||
Zoran Corp.* | 640 | 4,371 | ||||||
JDA Software Group, Inc.* | 320 | 4,202 | ||||||
Advent Software, Inc.* | 209 | 4,174 | ||||||
VeriFone Holdings, Inc.* | �� | 840 | 4,116 | |||||
Palm, Inc.* | 1,320 | 4,052 | ||||||
Avid Technology, Inc.* | 370 | 4,037 | ||||||
Insight Enterprises, Inc.* | 580 | 4,002 | ||||||
Monolithic Power Systems, Inc.* | 316 | 3,985 | ||||||
DTS, Inc. — Class A* | 217 | 3,982 | ||||||
Sonus Networks, Inc.* | 2,510 | 3,966 | ||||||
Advanced Energy Industries, Inc.* | 398 | 3,960 | ||||||
MicroStrategy, Inc. — Class A* | 106 | 3,936 | ||||||
Cavium Networks, Inc.* | 370 | 3,889 | ||||||
Silicon Image, Inc.* | 900 | 3,780 | ||||||
Teletech Holdings, Inc.* | 450 | 3,757 | ||||||
Daktronics, Inc. | 400 | 3,744 | ||||||
RealNetworks, Inc.* | 1,050 | 3,706 | ||||||
Syntel, Inc. | 160 | 3,699 | ||||||
MSC.Software Corp.* | 550 | 3,674 | ||||||
Actel Corp.* | 310 | 3,633 | ||||||
Vocus, Inc.* | 198 | 3,606 | ||||||
Faro Technologies, Inc.* | 209 | 3,524 | ||||||
TeleCommunication Systems, Inc. — Class A* | 410 | 3,522 | ||||||
Epicor Software Corp.* | 730 | 3,504 | ||||||
Blue Coat Systems, Inc.* | 410 | 3,444 | ||||||
THQ, Inc.* | 820 | 3,436 | ||||||
Ultratech, Inc.* | 287 | 3,433 | ||||||
Vasco Data Security International* | 330 | 3,409 | ||||||
Universal Display Corp.* | 360 | 3,402 | ||||||
Supertex, Inc.* | 140 | 3,361 | ||||||
Cohu, Inc. | 276 | 3,353 | ||||||
OmniVision Technologies, Inc.* | 630 | 3,307 | ||||||
Constant Contact, Inc.* | 246 | 3,260 | ||||||
Neutral Tandem, Inc.* | 198 | 3,212 | ||||||
Netezza Corp.* | 480 | 3,187 | ||||||
Bel Fuse, Inc. — Class B | 150 | 3,180 | ||||||
Ciber, Inc.* | 660 | 3,175 | ||||||
InfoSpace, Inc. | 420 | 3,171 | ||||||
Methode Electronics, Inc. — Class A | 470 | 3,168 | ||||||
IPG Photonics Corp.* | 240 | 3,163 | ||||||
SAVVIS, Inc.* | 458 | 3,156 | ||||||
Applied Micro Circuits Corp.* | 800 | 3,144 | ||||||
Sigma Designs, Inc.* | 330 | 3,135 | ||||||
Netscout Systems, Inc.* | 360 | 3,103 | ||||||
Sanmina-SCI Corp.* | 6,530 | 3,069 | ||||||
Exar Corp.* | 460 | 3,068 |
82 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Entegris, Inc.* | 1,400 | $ | 3,066 | |||||
GSI Commerce, Inc.* | 290 | 3,051 | ||||||
Art Technology Group, Inc.* | 1,580 | 3,049 | ||||||
Ixia* | 520 | 3,006 | ||||||
Newport Corp.* | 440 | 2,983 | ||||||
Amkor Technology, Inc.* | 1,340 | 2,921 | ||||||
The Knot, Inc.* | 350 | 2,912 | ||||||
Echelon Corp.* | 357 | 2,910 | ||||||
Electro Rent Corp. | 258 | 2,879 | ||||||
Vignette Corp.* | 300 | 2,823 | ||||||
TNS, Inc.* | 300 | 2,817 | ||||||
comScore, Inc.* | 216 | 2,754 | ||||||
DG FastChannel, Inc.* | 220 | 2,746 | ||||||
Seachange International, Inc.* | 380 | 2,740 | ||||||
Transmeta Corp.* | 150 | 2,730 | ||||||
TTM Technologies, Inc.* | 520 | 2,709 | ||||||
Stratasys, Inc.* | 250 | 2,688 | ||||||
Synchronoss Technologies, Inc.* | 250 | 2,665 | ||||||
Brightpoint, Inc.* | 610 | 2,654 | ||||||
OSI SYSTEMS INC* | 190 | 2,632 | ||||||
RightNow Technologies, Inc.* | 340 | 2,628 | ||||||
SonicWALL, Inc.* | 660 | 2,627 | ||||||
Internet Capital Group, Inc.* | 480 | 2,616 | ||||||
Digi International, Inc.* | 320 | 2,595 | ||||||
Extreme Networks, Inc.* | 1,090 | 2,551 | ||||||
Integral Systems, Inc.* | 210 | 2,531 | ||||||
Terremark Worldwide, Inc.* | 650 | 2,529 | ||||||
Move, Inc.* | 1,580 | 2,528 | ||||||
RF Micro Devices, Inc.* | 3,230 | 2,519 | ||||||
Utstarcom, Inc.* | 1,360 | 2,516 | ||||||
3PAR, Inc.* | 328 | 2,503 | ||||||
Taleo Corp.* | 317 | 2,482 | ||||||
IXYS Corp. | 300 | 2,478 | ||||||
Veeco Instruments, Inc.* | 390 | 2,473 | ||||||
LoopNet, Inc.* | 360 | 2,455 | ||||||
Cass Information Systems, Inc. | 80 | 2,437 | ||||||
Symyx Technologies, Inc.* | 410 | 2,435 | ||||||
NCI, Inc.* | 80 | 2,410 | ||||||
ShoreTel, Inc.* | 530 | 2,380 | ||||||
SYNNEX Corp.* | 207 | 2,345 | ||||||
NIC, Inc. | 490 | 2,254 | ||||||
CTS Corp. | 409 | 2,254 | ||||||
DSP Group, Inc.* | 280 | 2,246 | ||||||
Symmetricom, Inc.* | 567 | 2,240 | ||||||
Kenexa Corp. — Class A* | 280 | 2,234 | ||||||
Pegasystems, Inc. | 180 | 2,225 | ||||||
Electro Scientific Industries, Inc.* | 327 | 2,220 | ||||||
Volterra Semiconductor Corp.* | 310 | 2,217 | ||||||
BigBand Networks, Inc.* | 400 | 2,208 | ||||||
Silicon Storage Technology, Inc.* | 960 | 2,198 | ||||||
Actuate Corp.* | 740 | 2,190 | ||||||
Diodes, Inc.* | 360 | 2,182 | ||||||
Anaren, Inc.* | 180 | 2,151 | ||||||
Oplink Communications, Inc.* | 250 | 2,150 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Lattice Semiconductor Corp.* | 1,420 | $ | 2,144 | |||||
Cirrus Logic, Inc.* | 800 | 2,144 | ||||||
Smith Micro Software, Inc.* | 370 | 2,057 | ||||||
Ness Technologies, Inc.* | 480 | 2,054 | ||||||
Loral Space & Communications, Inc.* | 140 | 2,034 | ||||||
Immersion Corp.* | 337 | 1,985 | ||||||
infoGROUP, Inc. | 410 | 1,943 | ||||||
DemandTec, Inc.* | 240 | 1,937 | ||||||
Bottomline Technologies, Inc.* | 270 | 1,917 | ||||||
Ebix, Inc.* | 80 | 1,912 | ||||||
Perficient, Inc.* | 390 | 1,864 | ||||||
Double-Take Software, Inc.* | 206 | 1,848 | ||||||
Switch & Data Facilities Company, Inc.* | 250 | 1,848 | ||||||
Finisar Corp.* | 4,850 | 1,843 | ||||||
Airvana, Inc.* | 300 | 1,836 | ||||||
Super Micro Computer, Inc.* | 290 | 1,836 | ||||||
Novatel Wireless, Inc.* | 390 | 1,810 | ||||||
Mercury Computer Systems, Inc.* | 280 | 1,767 | ||||||
iGate Corp.* | 270 | 1,758 | ||||||
Ceva, Inc.* | 250 | 1,750 | ||||||
Technitrol, Inc. | 500 | 1,740 | ||||||
Kopin Corp.* | 850 | 1,734 | ||||||
DivX, Inc.* | 330 | 1,726 | ||||||
SuccessFactors, Inc.* | 300 | 1,722 | ||||||
Marchex, Inc. | 290 | 1,691 | ||||||
Advanced Analogic Technologies, Inc.* | 559 | 1,688 | ||||||
Online Resources Corp.* | 350 | 1,659 | ||||||
Compellent Technologies, Inc.* | 170 | 1,654 | ||||||
ModusLink Global Solutions, Inc.* | 570 | 1,647 | ||||||
Aruba Networks, Inc.* | 640 | 1,632 | ||||||
STEC, Inc.* | 380 | 1,619 | ||||||
Acme Packet, Inc.* | 307 | 1,615 | ||||||
Rimage Corp.* | 120 | 1,609 | ||||||
Harris Stratex Networks, Inc. — Class A* | 310 | 1,600 | ||||||
PC-Tel, Inc. | 240 | 1,577 | ||||||
Internet Brands, Inc. — Class A* | 270 | 1,571 | ||||||
NVE Corp.* | 60 | 1,568 | ||||||
China Security & Surveillance Technology, Inc.* | 350 | 1,551 | ||||||
Internap Network Services Corp.* | 620 | 1,550 | ||||||
Radisys Corp.* | 280 | 1,548 | ||||||
Opnet Technologies, Inc.* | 156 | 1,538 | ||||||
Liquidity Services Inc.* | 180 | 1,499 | ||||||
Hackett Group, Inc.* | 510 | 1,489 | ||||||
MRV Communications, Inc.* | 1,930 | 1,486 | ||||||
Gerber Scientific, Inc.* | 290 | 1,482 | ||||||
Pericom Semiconductor Corp.* | 270 | 1,480 | ||||||
ExlService Holdings, Inc.* | 170 | 1,457 | ||||||
Hughes Communications, Inc.* | 90 | 1,435 | ||||||
Rackable Systems, Inc.* | 360 | 1,418 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 83 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Trident Microsystems, Inc.* | 750 | $ | 1,418 | |||||
Cogo Group, Inc.* | 290 | 1,409 | ||||||
Sourcefire, Inc.* | 250 | 1,400 | ||||||
Globecomm Systems, Inc.* | 250 | 1,373 | ||||||
Intevac, Inc.* | 270 | 1,369 | ||||||
Microtune, Inc.* | 670 | 1,367 | ||||||
ICx Technologies, Inc.* | 170 | 1,345 | ||||||
Rudolph Technologies, Inc.* | 377 | 1,331 | ||||||
Comverge, Inc.* | 270 | 1,323 | ||||||
OpenTV Corp.* | 1,070 | 1,316 | ||||||
American Software, Inc. — Class A | 280 | 1,316 | ||||||
Zygo Corp., Inc.* | 190 | 1,313 | ||||||
Keynote Systems, Inc.* | 170 | 1,311 | ||||||
FalconStor Software, Inc.* | 470 | 1,307 | ||||||
Multi-Fineline Electronix, Inc.* | 110 | 1,286 | ||||||
Kulicke & Soffa Industries, Inc.* | 750 | 1,275 | ||||||
SupportSoft, Inc.* | 570 | 1,271 | ||||||
Measurement Specialties, Inc.* | 180 | 1,251 | ||||||
Web.com Group, Inc.* | 340 | 1,244 | ||||||
Techwell, Inc.* | 190 | 1,235 | ||||||
i2 Technologies, Inc.* | 190 | 1,214 | ||||||
Agilysys, Inc. | 280 | 1,201 | ||||||
Phoenix Technologies, Ltd.* | 340 | 1,190 | ||||||
Entrust, Inc.* | 750 | 1,185 | ||||||
Emcore Corp.* | 900 | 1,170 | ||||||
Radiant Systems, Inc.* | 340 | 1,146 | ||||||
Anadigics, Inc.* | 770 | 1,140 | ||||||
Rackspace Hosting* | 210 | 1,130 | ||||||
Maxwell Technologies, Inc.* | 220 | 1,115 | ||||||
Callidus Software, Inc.* | 370 | 1,106 | ||||||
Monotype Imaging Holdings, Inc.* | 190 | 1,102 | ||||||
Presstek, Inc.* | 340 | 1,091 | ||||||
Global Cash Access Holdings, Inc.* | 489 | 1,086 | ||||||
Renaissance Learning, Inc. | 120 | 1,079 | ||||||
CPI International, Inc.* | 120 | 1,039 | ||||||
Safeguard Scientifics, Inc.* | 1,490 | 1,028 | ||||||
Interactive Intelligence, Inc.* | 160 | 1,026 | ||||||
Photronics, Inc.* | 520 | 1,014 | ||||||
Hutchinson Technology, Inc.* | 290 | 1,009 | ||||||
China Information Security Technology, Inc.* | 280 | 1,008 | ||||||
Isilon Systems, Inc.* | 300 | 987 | ||||||
Chordiant Software, Inc.* | 367 | 976 | ||||||
SiRF Technology Holdings, Inc.* | 750 | 960 | ||||||
PROS Holdings, Inc.* | 165 | 949 | ||||||
Unica Corp.* | 167 | 915 | ||||||
Quantum Corp.* | 2,530 | 911 | ||||||
Mattson Technology, Inc.* | 610 | 860 | ||||||
Limelight Networks Inc.* | 350 | 858 | ||||||
Semitool, Inc.* | 280 | 854 | ||||||
Cray, Inc.* | 410 | 853 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Orbcomm, Inc.* | 390 | $ | 842 | |||||
Smart Modular Technologies WWH, Inc.* | 537 | 827 | ||||||
Powerwave Technologies, Inc.* | 1,620 | 810 | ||||||
NetSuite, Inc.* | 95 | 802 | ||||||
Digimarc Corp.* | 80 | 802 | ||||||
Dice Holdings, Inc.* | 186 | 759 | ||||||
TechTarget, Inc.* | 170 | 734 | ||||||
Hypercom Corp.* | 660 | 713 | ||||||
Deltek, Inc.* | 150 | 696 | ||||||
Parkervision, Inc.* | 280 | 692 | ||||||
Rubicon Technology, Inc.* | 157 | 669 | ||||||
Axcelis Technologies, Inc.* | 1,260 | 643 | ||||||
ArcSight, Inc.* | 80 | 641 | ||||||
TheStreet.com, Inc. | 220 | 638 | ||||||
QAD, Inc. | 150 | 629 | ||||||
PC Connection, Inc.* | 120 | 614 | ||||||
Virtusa Corp.* | 106 | 598 | ||||||
PLX Technology, Inc.* | 347 | 597 | ||||||
MIPS Technology, Inc.* | 537 | 596 | ||||||
PC Mall, Inc.* | 140 | 561 | ||||||
Bookham, Inc.* | 1,240 | 558 | ||||||
Magma Design Automation, Inc.* | 540 | 551 | ||||||
AuthenTec, Inc.* | 306 | 511 | ||||||
Ultra Clean Holdings* | 240 | 482 | ||||||
Sonic Solutions, Inc.* | 270 | 475 | ||||||
Gevity HR, Inc. | 300 | 453 | ||||||
Guidance Software, Inc.* | 110 | 449 | ||||||
LTX-Credence Corp.* | 1,540 | 416 | ||||||
Opnext, Inc.* | 230 | 403 | ||||||
Spansion, Inc.* | 1,570 | 297 | ||||||
KEMET Corp.* | 1,030 | 278 | ||||||
Avanex Corp.* | 175 | 184 | ||||||
Asyst Technologies, Inc.* | 610 | 153 | ||||||
HSW International, Inc.* | 340 | 129 | ||||||
Elixir Gaming Technologies, Inc.* | 830 | 108 | ||||||
Entropic Communications, Inc.* | 110 | 55 | ||||||
Nextwave Wireless, Inc.* | 600 | 54 | ||||||
Midway Games, Inc.* | 140 | 27 | ||||||
Total Information Technology | 1,451,180 | |||||||
HEALTH CARE 10.1% | ||||||||
Myriad Genetics, Inc.* | 550 | 36,443 | ||||||
Alexion Pharmaceuticals, Inc.* | 940 | 34,019 | ||||||
OSI Pharmaceuticals, Inc.* | 700 | 27,335 | ||||||
Onyx Pharmaceuticals, Inc.* | 680 | 23,229 | ||||||
Immucor, Inc.* | 859 | 22,832 | ||||||
Thoratec Corp.* | 670 | 21,768 | ||||||
Magellan Health Services, Inc.* | 500 | 19,580 | ||||||
AMERIGROUP Corp.* | 660 | 19,483 | ||||||
Owens & Minor, Inc. | 510 | 19,201 | ||||||
Psychiatric Solutions, Inc.* | 680 | 18,938 | ||||||
Haemonetics Corp.* | 320 | 18,080 | ||||||
Valeant Pharmaceuticals International* | 780 | 17,862 |
84 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Allscripts Healthcare | ||||||||
Solutions, Inc. | 1,790 | $ | 17,757 | |||||
United Therapeutics Corp.* | 280 | 17,514 | ||||||
Bio-Rad Laboratories, Inc. — Class A* | 229 | 17,246 | ||||||
Steris Corp. | 720 | 17,201 | ||||||
Masimo Corp.* | 570 | 17,003 | ||||||
Cubist Pharmaceuticals, Inc.* | 690 | 16,670 | ||||||
Isis Pharmaceuticals, Inc.* | 1,110 | 15,740 | ||||||
NuVasive, Inc.* | 440 | 15,246 | ||||||
West Pharmaceutical Services, Inc. | 398 | 15,032 | ||||||
Sequenom, Inc.* | 750 | 14,880 | ||||||
Auxilium Pharmaceuticals, Inc.* | 510 | 14,504 | ||||||
PSS World Medical, Inc.* | 760 | 14,303 | ||||||
Regeneron Pharmaceuticals, Inc.* | 760 | 13,954 | ||||||
Amedisys, Inc.* | 330 | 13,642 | ||||||
Mentor Corp. | 417 | 12,898 | ||||||
Viropharma, Inc.* | 970 | 12,629 | ||||||
Meridian Bioscience, Inc. | 490 | 12,480 | ||||||
Alkermes, Inc.* | 1,170 | 12,460 | ||||||
Healthspring, Inc.* | 610 | 12,182 | ||||||
Martek Biosciences Corp. | 400 | 12,124 | ||||||
Varian, Inc.* | 360 | 12,064 | ||||||
Healthsouth Corp.* | 1,080 | 11,837 | ||||||
Chemed Corp. | 280 | 11,136 | ||||||
Celera Corp.* | 980 | 10,907 | ||||||
Luminex Corp.* | 510 | 10,894 | ||||||
Alnylam Pharmaceuticals, Inc.* | 440 | 10,881 | ||||||
Centene Corp.* | 530 | 10,446 | ||||||
Dionex Corp.* | 230 | 10,315 | ||||||
Catalyst Health Solutions, Inc.* | 410 | 9,983 | ||||||
HMS Holdings Corp.* | 307 | 9,677 | ||||||
Medicis Pharmaceutical Corp. — Class A | 690 | 9,591 | ||||||
Eclipsys Corp.* | 670 | 9,507 | ||||||
Acorda Therapeutics, Inc.* | 460 | 9,435 | ||||||
Medicines Co.* | 640 | 9,427 | ||||||
athenahealth, Inc.* | 250 | 9,405 | ||||||
Wright Medical Group, Inc.* | 458 | 9,357 | ||||||
AmSurg Corp.* | 390 | 9,103 | ||||||
PDL BioPharma, Inc. | 1,470 | 9,085 | ||||||
Gentiva Health Services, Inc.* | 310 | 9,071 | ||||||
Medarex, Inc.* | 1,570 | 8,761 | ||||||
Volcano Corp.* | 580 | 8,700 | ||||||
Conmed Corp.* | 350 | 8,379 | ||||||
Datascope Corp. | 156 | 8,149 | ||||||
Landauer, Inc. | 110 | 8,063 | ||||||
American Medical Systems Holdings, Inc.* | 890 | 8,001 | ||||||
Theravance, Inc.* | 640 | 7,930 | ||||||
XenoPort, Inc.* | 310 | 7,775 | ||||||
Integra LifeSciences Holdings Corp.* | 217 | 7,719 | ||||||
AMAG Pharmaceuticals, Inc.* | 208 | 7,457 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Greatbatch, Inc.* | 280 | $ | 7,409 | |||||
Cepheid, Inc.* | 700 | 7,266 | ||||||
CV Therapeutics, Inc.* | 750 | 6,907 | ||||||
Abiomed, Inc.* | 420 | 6,896 | ||||||
Parexel International Corp.* | 700 | 6,797 | ||||||
Align Technology, Inc.* | 760 | 6,650 | ||||||
Phase Forward, Inc.* | 530 | 6,636 | ||||||
Seattle Genetics, Inc.* | 740 | 6,616 | ||||||
LHC Group, Inc.* | 180 | 6,480 | ||||||
Exelixis, Inc.* | 1,290 | 6,476 | ||||||
Nektar Therapeutics* | 1,140 | 6,338 | ||||||
Merit Medical Systems, Inc.* | 340 | 6,096 | ||||||
Invacare Corp. | 390 | 6,053 | ||||||
PharMerica Corp.* | 370 | 5,798 | ||||||
Questcor Pharmaceuticals, Inc.* | 620 | 5,772 | ||||||
Par Pharmaceutical Companies, Inc.* | 420 | 5,632 | ||||||
Conceptus, Inc.* | 370 | 5,631 | ||||||
Hanger Orthopedic Group, Inc.* | 380 | 5,514 | ||||||
Dendreon Corp.* | 1,150 | 5,267 | ||||||
ev3, Inc.* | 860 | 5,246 | ||||||
Salix Pharmaceuticals Ltd.* | 590 | 5,210 | ||||||
Healthways, Inc.* | 430 | 4,936 | ||||||
Zoll Medical Corp.* | 258 | 4,874 | ||||||
National Healthcare Corp. | 96 | 4,861 | ||||||
Cyberonics, Inc.* | 290 | 4,805 | ||||||
SurModics, Inc.* | 190 | 4,801 | ||||||
inVentiv Health, Inc.* | 410 | 4,731 | ||||||
Sun Healthcare Group, Inc.* | 530 | 4,690 | ||||||
Cougar Biotechnology, Inc.* | 180 | 4,680 | ||||||
Omnicell, Inc.* | 380 | 4,640 | ||||||
ICU Medical, Inc.* | 140 | 4,640 | ||||||
Quidel Corp.* | 350 | 4,574 | ||||||
Vivus, Inc.* | 850 | 4,522 | ||||||
Medivation, Inc.* | 310 | 4,517 | ||||||
Neogen Corp.* | 180 | 4,496 | ||||||
Geron Corp.* | 960 | 4,483 | ||||||
Res-Care, Inc.* | 297 | 4,461 | ||||||
Emergent Biosolutions, Inc.* | 170 | 4,439 | ||||||
Kindred Healthcare, Inc.* | 340 | 4,427 | ||||||
Natus Medical, Inc.* | 340 | 4,403 | ||||||
Analogic Corp. | 160 | 4,365 | ||||||
Abaxis, Inc.* | 270 | 4,328 | ||||||
Universal American Financial Corp.* | 480 | 4,234 | ||||||
Halozyme Therapeutics, Inc.* | 750 | 4,200 | ||||||
InterMune, Inc.* | 390 | 4,126 | ||||||
Kendle International, Inc.* | 160 | 4,115 | ||||||
Angiodynamics, Inc.* | 298 | 4,080 | ||||||
Emergency Medical Services Corp. — Class A* | 110 | 4,027 | ||||||
SonoSite, Inc.* | 210 | 4,007 | ||||||
Allos Therapeutics, Inc.* | 650 | 3,978 | ||||||
Savient Pharmaceuticals, Inc.* | 670 | 3,879 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 85 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Optimer Pharmaceuticals, Inc.* | 320 | $ | 3,875 | |||||
GTx, Inc.* | 230 | 3,873 | ||||||
Momenta Pharmaceuticals, Inc.* | 330 | 3,828 | ||||||
Arena Pharmaceuticals, Inc.* | 910 | 3,795 | ||||||
Odyssey HealthCare, Inc.* | 400 | 3,700 | ||||||
Bio-Reference Labs, Inc.* | 140 | 3,672 | ||||||
NPS Pharmaceuticals, Inc.* | 580 | 3,602 | ||||||
Rigel Pharmaceuticals, Inc.* | 450 | 3,600 | ||||||
Almost Family, Inc.* | 80 | 3,598 | ||||||
Genoptix Inc.* | 105 | 3,578 | ||||||
Incyte Corp.* | 940 | 3,563 | ||||||
AMN Healthcare Services, Inc.* | 420 | 3,553 | ||||||
Human Genome Sciences, Inc.* | 1,670 | 3,540 | ||||||
eResearch Technology, Inc.* | 530 | 3,514 | ||||||
Symmetry Medical, Inc.* | 440 | 3,507 | ||||||
MWI Veterinary Supply, Inc.* | 130 | 3,505 | ||||||
Osiris Therapeutics, Inc.* | 180 | 3,449 | ||||||
Durect Corp.* | 1,010 | 3,424 | ||||||
Noven Pharmaceuticals, Inc.* | 307 | 3,377 | ||||||
Progenics Pharmaceuticals, Inc.* | 327 | 3,371 | ||||||
Cross Country Healthcare, Inc.* | 377 | 3,314 | ||||||
RehabCare Group, Inc.* | 218 | 3,305 | ||||||
CryoLife, Inc.* | 340 | 3,301 | ||||||
Genomic Health, Inc.* | 167 | 3,253 | ||||||
Orthofix International NV* | 210 | 3,219 | ||||||
MedAssets, Inc.* | 220 | 3,212 | ||||||
IRIS International, Inc.* | 230 | 3,206 | ||||||
Enzon Pharmaceuticals, Inc.* | 548 | 3,195 | ||||||
Cypress Bioscience, Inc.* | 460 | 3,146 | ||||||
Molina Healthcare, Inc.* | 170 | 2,994 | ||||||
Indevus Pharmaceuticals, Inc.* | 950 | 2,983 | ||||||
Computer Programs & | ||||||||
Systems, Inc. | 110 | 2,948 | ||||||
Metabolix, Inc.* | 230 | 2,926 | ||||||
Ligand Pharmaceuticals, Inc. — Class B* | 1,040 | 2,850 | ||||||
Albany Molecular Research, Inc.* | 290 | 2,825 | ||||||
Synovis Life Technologies, Inc.* | 150 | 2,811 | ||||||
Facet Biotech Corp.* | 290 | 2,781 | ||||||
Assisted Living Concepts, Inc. — Class A* | 670 | 2,780 | ||||||
Maxygen Inc.* | 310 | 2,765 | ||||||
Pharmasset, Inc.* | 210 | 2,753 | ||||||
Orthovita, Inc.* | 810 | 2,746 | ||||||
ImmunoGen, Inc.* | 620 | 2,660 | ||||||
Vital Images, Inc.* | 187 | 2,601 | ||||||
Vnus Medical Technologies, Inc.* | 160 | 2,595 | ||||||
Affymetrix, Inc.* | 853 | 2,550 | ||||||
Palomar Medical Technologies, Inc.* | 220 | 2,537 | ||||||
Bruker BioSciences Corp.* | 620 | 2,505 | ||||||
Pain Therapeutics, Inc.* | 420 | 2,486 | ||||||
Somanetics Corp.* | 150 | 2,476 | ||||||
Dyax Corp.* | 680 | 2,475 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Alliance Imaging, Inc.* | 310 | $ | 2,471 | |||||
Emeritus Corp.* | 240 | 2,407 | ||||||
Array Biopharma, Inc.* | 580 | 2,349 | ||||||
FGX International Holdings Ltd.* | 170 | 2,336 | ||||||
Accuray, Inc.* | 440 | 2,270 | ||||||
Micrus Endovascular Corp.* | 190 | 2,206 | ||||||
Sirona Dental Systems, Inc.* | 210 | 2,205 | ||||||
Cantel Medical Corp.* | 150 | 2,200 | ||||||
Corvel Corp.* | 100 | 2,198 | ||||||
MannKind Corp.* | 627 | 2,151 | ||||||
Nabi Biopharmaceuticals* | 640 | 2,144 | ||||||
OraSure Technologies, Inc.* | 580 | 2,134 | ||||||
Arqule, Inc.* | 500 | 2,110 | ||||||
Medcath Corp.* | 200 | 2,088 | ||||||
Air Methods Corp.* | 130 | 2,079 | ||||||
US Physical Therapy, Inc.* | 150 | 1,999 | ||||||
Enzo Biochem, Inc.* | 400 | 1,956 | ||||||
Triple-S Management Corp. — Class B* | 170 | 1,955 | ||||||
Atrion Corp. | 20 | 1,942 | ||||||
Idera Pharmaceuticals, Inc.* | 246 | 1,889 | ||||||
Inspire Pharmaceuticals, Inc.* | 520 | 1,872 | ||||||
Kensey Nash Corp.* | 95 | 1,844 | ||||||
Skilled Healthcare Group, Inc. — Class A* | 218 | 1,840 | ||||||
RTI Biologics, Inc.* | 660 | 1,822 | ||||||
Cardiac Science Corp.* | 240 | 1,800 | ||||||
Ardea Biosciences, Inc.* | 150 | 1,795 | ||||||
Idenix Pharmaceuticals, Inc.* | 310 | 1,795 | ||||||
Cadence Pharmaceuticals, Inc.* | 248 | 1,793 | ||||||
Insulet Corp.* | 230 | 1,776 | ||||||
Ensign Group, Inc. | 105 | 1,758 | ||||||
Medical Action Industries, Inc.* | 170 | 1,700 | ||||||
Cambrex Corp.* | 360 | 1,663 | ||||||
Obagi Medical Products, Inc.* | 218 | 1,626 | ||||||
Akorn, Inc.* | 700 | 1,610 | ||||||
Pozen, Inc.* | 316 | 1,593 | ||||||
Sangamo Biosciences, Inc.* | 450 | 1,566 | ||||||
BMP Sunstone Corp.* | 280 | 1,560 | ||||||
ArthroCare Corp.* | 326 | 1,555 | ||||||
Hansen Medical, Inc.* | 210 | 1,516 | ||||||
Exactech, Inc.* | 90 | 1,516 | ||||||
Neurocrine Biosciences, Inc.* | 470 | 1,504 | ||||||
Stereotaxis, Inc.* | 340 | 1,496 | ||||||
CardioNet, Inc.* | 60 | 1,479 | ||||||
BioMimetic Therapeutics, Inc.* | 157 | 1,448 | ||||||
Accelrys, Inc.* | 330 | 1,439 | ||||||
Repligen Corp.* | 380 | 1,436 | ||||||
Celldex Therapeutics, Inc.* | 180 | 1,426 | ||||||
Nighthawk Radiology Holdings, Inc.* | 290 | 1,409 | ||||||
Orexigen Therapeutics, Inc.* | 250 | 1,395 | ||||||
Lexicon Genetics, Inc.* | 990 | 1,386 | ||||||
Zymogenetics, Inc.* | 460 | 1,380 |
86 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Immunomedics, Inc.* | 797 | $ | 1,355 | |||||
Affymax, Inc.* | 135 | 1,349 | ||||||
Novavax, Inc.* | 710 | 1,342 | ||||||
Discovery Laboratories, Inc.* | 1,190 | 1,333 | ||||||
I-Flow Corp.* | 266 | 1,277 | ||||||
Synta Pharmaceuticals Corp.* | 208 | 1,273 | ||||||
Clinical Data, Inc.* | 140 | 1,246 | ||||||
Cytokinetics, Inc.* | 428 | 1,220 | ||||||
TomoTherapy, Inc.* | 500 | 1,190 | ||||||
IPC The Hospitalist Company, Inc.* | 70 | 1,178 | ||||||
KV Pharmaceutical Co.* | 400 | 1,152 | ||||||
Chindex International, Inc.* | 140 | 1,113 | ||||||
Cynosure, Inc.* | 120 | 1,096 | ||||||
TranS1, Inc.* | 150 | 1,081 | ||||||
Depomed, Inc.* | 630 | 1,040 | ||||||
Life Sciences Research, Inc.* | 110 | 1,034 | ||||||
Spectranetics Corp.* | 390 | 1,018 | ||||||
XOMA Ltd.* | 1,630 | 1,011 | ||||||
Cytori Therapeutics, Inc.* | 270 | 975 | ||||||
Opko Health, Inc.* | 590 | 956 | ||||||
Adolor Corp.* | 570 | 946 | ||||||
Molecular Insight Pharmaceuticals, Inc.* | 220 | 946 | ||||||
Alexza Pharmaceuticals, Inc.* | 290 | 919 | ||||||
Sunrise Senior Living, Inc.* | 547 | 919 | ||||||
DexCom, Inc.* | 320 | 883 | ||||||
RadNet, Inc.* | 260 | 871 | ||||||
NxStage Medical, Inc.* | 320 | 854 | ||||||
Capital Senior Living Corp.* | 270 | 805 | ||||||
Targacept, Inc.* | 220 | 783 | ||||||
Caraco Pharm Labs, Inc.* | 130 | 770 | ||||||
Nanosphere, Inc.* | 160 | 762 | ||||||
Javelin Pharmaceuticals, Inc.* | 600 | 750 | ||||||
Columbia Labs, Inc.* | 580 | 737 | ||||||
Acura Pharmaceuticals, Inc.* | 100 | 734 | ||||||
Ariad Pharmaceuticals, Inc.* | 850 | 723 | ||||||
Alphatec Holdings, Inc.* | 307 | 721 | ||||||
MAP Pharmaceuticals, Inc.* | 100 | 698 | ||||||
Virtual Radiologic Corp.* | 80 | 678 | ||||||
MiddleBrook Pharmaceuticals, Inc.* | 440 | 660 | ||||||
Sucampo Pharmaceuticals, Inc. — Class A* | 110 | 633 | ||||||
Biodel, Inc.* | 130 | 627 | ||||||
Five Star Quality Care, Inc.* | 390 | 597 | ||||||
National Research Corp. | 20 | 579 | ||||||
Caliper Life Sciences, Inc.* | 590 | 572 | ||||||
Amicus Therapeutics, Inc.* | 60 | 479 | ||||||
Acadia Pharmaceuticals, Inc.* | 410 | 369 | ||||||
Vision-Sciences, Inc.* | 210 | 321 | ||||||
Rexahn Pharmaceuticals, Inc.* | 360 | 320 | ||||||
BioForm Medical, Inc.* | 270 | 246 | ||||||
Protalix BioTherapeutics, Inc.* | 130 | 239 | ||||||
Cell Genesys, Inc.* | 1,060 | 233 |
MARKET | ||||||||
SHARES | VALUE | |||||||
PharmaNet Development Group, Inc.* | 240 | $ | 218 | |||||
Providence Service Corp.* | 150 | 218 | ||||||
Marshall Edwards, Inc.* | 250 | 175 | ||||||
Jazz Pharmaceuticals, Inc.* | 90 | 174 | ||||||
Total Health Care | 1,406,706 | |||||||
CONSUMER DISCRETIONARY 7.2% | ||||||||
Wendy’s/Arby’s Group, Inc. — Class A | 4,880 | 24,107 | ||||||
Marvel Entertainment, Inc.* | 600 | 18,450 | ||||||
Tupperware Brands Corp. | 760 | 17,252 | ||||||
Corinthian Colleges, Inc.* | 1,050 | 17,188 | ||||||
Bally Technologies, Inc.* | 670 | 16,100 | ||||||
Jack in the Box, Inc.* | 720 | 15,905 | ||||||
Netflix, Inc.* | 500 | 14,945 | ||||||
Aaron Rents, Inc. | 560 | 14,907 | ||||||
Tractor Supply Co.* | 410 | 14,817 | ||||||
Rent-A-Center, Inc.* | 820 | 14,473 | ||||||
WMS Industries, Inc.* | 537 | 14,445 | ||||||
Matthews International Corp. — Class A | 380 | 13,938 | ||||||
Carter’s, Inc.* | 700 | 13,482 | ||||||
Aeropostale, Inc.* | 819 | 13,186 | ||||||
Wolverine World Wide, Inc. | 610 | 12,834 | ||||||
Deckers Outdoor Corp.* | 160 | 12,779 | ||||||
Polaris Industries, Inc. | 410 | 11,746 | ||||||
Interactive Data Corp. | 450 | 11,097 | ||||||
The Warnaco Group, Inc.* | 560 | 10,993 | ||||||
Pool Corp. | 590 | 10,602 | ||||||
Capella Education Co.* | 180 | 10,577 | ||||||
Under Armour, Inc.* | 410 | 9,774 | ||||||
Vail Resorts, Inc.* | 360 | 9,576 | ||||||
Fossil, Inc.* | 560 | 9,352 | ||||||
Collective Brands, Inc.* | 790 | 9,259 | ||||||
Ryland Group, Inc. | 520 | 9,188 | ||||||
Gymboree Corp.* | 350 | 9,131 | ||||||
Chico’s FAS, Inc.* | 2,170 | 9,071 | ||||||
Sonic Corp.* | 740 | 9,006 | ||||||
Men’s Wearhouse, Inc. | 630 | 8,530 | ||||||
Bob Evans Farms, Inc. | 380 | 7,763 | ||||||
Regis Corp. | 530 | 7,701 | ||||||
Callaway Golf Co. | 810 | 7,525 | ||||||
Sotheby’s | 830 | 7,379 | ||||||
Cheesecake Factory, Inc.* | 730 | 7,373 | ||||||
Jakks Pacific, Inc.* | 340 | 7,014 | ||||||
Iconix Brand Group, Inc.* | 710 | 6,944 | ||||||
Timberland Co. — Class A* | 590 | 6,814 | ||||||
Coinstar, Inc.* | 340 | 6,633 | ||||||
Sally Beauty Holdings, Inc.* | 1,160 | 6,600 | ||||||
Tempur-Pedic International, Inc. | 920 | 6,523 | ||||||
Helen of Troy Ltd.* | 370 | 6,423 | ||||||
J. Crew Group, Inc.* | 520 | 6,344 | ||||||
99 Cents Only Stores* | 580 | 6,339 | ||||||
Buckle, Inc. | 286 | 6,241 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 87 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
P.F. Chang’s China Bistro, Inc.* | 298 | $ | 6,240 | |||||
Children’s Place Retail Stores, Inc.* | 287 | 6,222 | ||||||
CEC Entertainment, Inc.* | 250 | 6,062 | ||||||
Dress Barn, Inc.* | 550 | 5,907 | ||||||
Steiner Leisure Ltd.* | 200 | 5,904 | ||||||
Jos. A. Bank Clothiers, Inc.* | 220 | 5,753 | ||||||
Pinnacle Entertainment, Inc.* | 740 | 5,683 | ||||||
Life Time Fitness, Inc.* | 430 | 5,569 | ||||||
Cracker Barrel Old Country Store, Inc. | 270 | 5,559 | ||||||
CKE Restaurants, Inc. | 640 | 5,555 | ||||||
Buffalo Wild Wings, Inc.* | 216 | 5,540 | ||||||
NutriSystem, Inc. | 377 | 5,500 | ||||||
Hibbett Sports Inc.* | 350 | 5,499 | ||||||
Jackson Hewitt Tax Service, Inc. | 350 | 5,492 | ||||||
Gaylord Entertainment Co.* | 500 | 5,420 | ||||||
Unifirst Corp. | 180 | 5,344 | ||||||
Live Nation, Inc.* | 930 | 5,338 | ||||||
National CineMedia, Inc. | 520 | 5,273 | ||||||
Fred’s, Inc. | 490 | 5,272 | ||||||
American Public Education, Inc.* | 140 | 5,207 | ||||||
Columbia Sportswear Co. | 147 | 5,199 | ||||||
Cato Corp. — Class A | 340 | 5,134 | ||||||
Skechers U.S.A., Inc. — Class A* | 400 | 5,128 | ||||||
PetMed Express, Inc.* | 290 | 5,113 | ||||||
Monro Muffler Brake, Inc. | 200 | 5,100 | ||||||
HOT Topic, Inc.* | 540 | 5,006 | ||||||
Papa John’s International, Inc.* | 270 | 4,976 | ||||||
Exide Technologies* | 930 | 4,920 | ||||||
Fuel Systems Solutions, Inc.* | 150 | 4,914 | ||||||
Churchill Downs, Inc. | 120 | 4,850 | ||||||
Jo-Ann Stores, Inc.* | 310 | 4,802 | ||||||
Texas Roadhouse, Inc.* | 610 | 4,728 | ||||||
Steven Madden, Ltd.* | 220 | 4,690 | ||||||
Meritage Homes Corp.* | 380 | 4,625 | ||||||
National Presto Industries, Inc. | 60 | 4,620 | ||||||
Brunswick Corp. | 1,079 | 4,543 | ||||||
Arbitron, Inc. | 340 | 4,515 | ||||||
Universal Technical Institute, Inc.* | 258 | 4,430 | ||||||
Cooper Tire & Rubber Co. | 719 | 4,429 | ||||||
Brown Shoe Company, Inc. | 520 | 4,404 | ||||||
Ethan Allen Interiors, Inc. | 300 | 4,311 | ||||||
American Greetings Corp. — Class A | 560 | 4,239 | ||||||
Scholastic Corp. | 300 | 4,074 | ||||||
Genesco, Inc.* | 240 | 4,061 | ||||||
Marcus Corp. | 246 | 3,993 | ||||||
Peet’s Coffee & Tea, Inc.* | 167 | 3,883 | ||||||
Stage Stores, Inc. | 470 | 3,878 | ||||||
Blue Nile, Inc.* | 157 | 3,845 | ||||||
Pre-Paid Legal Services, Inc.* | 100 | 3,729 | ||||||
K-Swiss, Inc. — Class A | 320 | 3,648 | ||||||
Bebe Stores, Inc. | 470 | 3,511 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Charming Shoppes, Inc.* | 1,390 | $ | 3,392 | |||||
The Wet Seal, Inc. — Class A* | 1,130 | 3,356 | ||||||
Shuffle Master, Inc.* | 650 | 3,224 | ||||||
Red Robin Gourmet Burgers, Inc.* | 190 | 3,198 | ||||||
Weyco Group, Inc. | 95 | 3,140 | ||||||
Group 1 Automotive, Inc. | 290 | 3,123 | ||||||
Stewart Enterprises, Inc. — Class A | 1,030 | 3,100 | ||||||
Finish Line, Inc. — Class A | 520 | 2,912 | ||||||
Superior Industries International, Inc. | 276 | 2,904 | ||||||
World Wrestling Entertainment, Inc. | 260 | 2,881 | ||||||
Drew Industries, Inc.* | 240 | 2,880 | ||||||
Quiksilver, Inc.* | 1,550 | 2,852 | ||||||
Maidenform Brands, Inc.* | 280 | 2,842 | ||||||
Cabela’s, Inc. — Class A* | 480 | 2,798 | ||||||
Harte-Hanks, Inc. | 447 | 2,789 | ||||||
California Pizza Kitchen, Inc.* | 260 | 2,787 | ||||||
Dillard’s, Inc. — Class A | 700 | 2,779 | ||||||
Universal Electronics, Inc.* | 170 | 2,757 | ||||||
Cinemark Holdings, Inc. | 370 | 2,749 | ||||||
Blockbuster, Inc. — Class A* | 2,180 | 2,747 | ||||||
Speedway Motorsports, Inc. | 170 | 2,739 | ||||||
RCN Corp.* | 458 | 2,702 | ||||||
Ameristar Casinos, Inc. | 310 | 2,678 | ||||||
Citi Trends, Inc.* | 180 | 2,650 | ||||||
True Religion Apparel, Inc.* | 210 | 2,612 | ||||||
ArvinMeritor, Inc. | 910 | 2,594 | ||||||
Core-Mark Holding Company, Inc.* | 120 | 2,582 | ||||||
Grand Canyon Education, Inc.* | 130 | 2,441 | ||||||
Christopher & Banks Corp. | 430 | 2,408 | ||||||
DineEquity, Inc. | 208 | 2,404 | ||||||
Volcom, Inc.* | 220 | 2,398 | ||||||
CKX, Inc.* | 650 | 2,386 | ||||||
Blyth, Inc. | 299 | 2,344 | ||||||
Denny’s Corp.* | 1,170 | 2,328 | ||||||
Domino’s Pizza, Inc.* | 480 | 2,261 | ||||||
RC2 Corp.* | 210 | 2,241 | ||||||
BJ’s Restaurants, Inc.* | 208 | 2,240 | ||||||
Standard-Pacific Corp.* | 1,240 | 2,207 | ||||||
Winnebago Industries, Inc. | 360 | 2,171 | ||||||
Raser Technologies, Inc.* | 580 | 2,163 | ||||||
Cavco Industries, Inc.* | 80 | 2,151 | ||||||
PEP Boys-Manny Moe & Jack | 520 | 2,148 | ||||||
Ambassadors Group, Inc. | 230 | 2,116 | ||||||
Steak n Shake Co.* | 350 | 2,083 | ||||||
Mediacom Communications Corp.* | 480 | 2,064 | ||||||
Overstock.com, Inc.* | 190 | 2,048 | ||||||
Dolan Media Co.* | 310 | 2,043 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc.* | 246 | 2,037 |
88 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Haverty Furniture Companies, Inc. | 217 | $ | 2,025 | |||||
Coldwater Creek, Inc.* | 700 | 1,995 | ||||||
DSW, Inc.* | 160 | 1,994 | ||||||
iRobot Corp.* | 217 | 1,960 | ||||||
Modine Manufacturing Co. | 400 | 1,948 | ||||||
Spartan Motors, Inc. | 400 | 1,892 | ||||||
Lululemon Athletica, Inc.* | 238 | 1,887 | ||||||
Movado Group, Inc. | 200 | 1,878 | ||||||
Sinclair Broadcast Group, Inc. — Class A | 600 | 1,860 | ||||||
Knology, Inc.* | 350 | 1,806 | ||||||
M/I Homes, Inc. | 170 | 1,792 | ||||||
Zumiez, Inc.* | 240 | 1,788 | ||||||
Midas, Inc.* | 170 | 1,783 | ||||||
Asbury Automotive Group, Inc. | 390 | 1,782 | ||||||
CSS Industries, Inc. | 100 | 1,774 | ||||||
Orbitz Worldwide, Inc.* | 450 | 1,746 | ||||||
Cox Radio Inc. — Class A* | 289 | 1,737 | ||||||
Dorman Products, Inc.* | 130 | 1,716 | ||||||
Belo Corp. — Class A | 1,100 | 1,716 | ||||||
Charlotte Russe Holding, Inc.* | 260 | 1,687 | ||||||
Tenneco, Inc.* | 570 | 1,682 | ||||||
Shutterfly, Inc.* | 240 | 1,678 | ||||||
Stamps.com, Inc.* | 170 | 1,671 | ||||||
America’s Car Mart, Inc.* | 120 | 1,657 | ||||||
Fisher Communications, Inc. | 80 | 1,651 | ||||||
American Axle & Manufacturing | ||||||||
Holdings, Inc. | 570 | 1,647 | ||||||
Monarch Casino & Resort, Inc.* | 140 | 1,631 | ||||||
Landry’s Restaurants, Inc. | 140 | 1,624 | ||||||
Skyline Corp. | 80 | 1,599 | ||||||
Cherokee, Inc. | 90 | 1,562 | ||||||
Unifi, Inc.* | 550 | 1,551 | ||||||
Systemax, Inc. | 140 | 1,508 | ||||||
K12 Inc.* | 80 | 1,500 | ||||||
Oxford Industries, Inc. | 170 | 1,491 | ||||||
AFC Enterprises, Inc.* | 310 | 1,454 | ||||||
Leapfrog Enterprises, Inc.* | 410 | 1,435 | ||||||
Big 5 Sporting Goods Corp. | 270 | 1,407 | ||||||
Steinway Musical Instruments, Inc.* | 80 | 1,401 | ||||||
Morgans Hotel Group Co.* | 300 | 1,398 | ||||||
RHI Entertainment* | 170 | 1,380 | ||||||
La-Z-Boy, Inc. | 630 | 1,367 | ||||||
Sealy Corp. | 540 | 1,355 | ||||||
Outdoor Channel Holdings, Inc.* | 178 | 1,333 | ||||||
hhgregg, Inc.* | 150 | 1,302 | ||||||
Zale Corp.* | 390 | 1,299 | ||||||
Pacific Sunwear of California, Inc.* | 810 | 1,288 | ||||||
Tween Brands, Inc.* | 297 | 1,283 | ||||||
drugstore.com, Inc.* | 1,030 | 1,277 | ||||||
Journal Communications, Inc. — Class A | 520 | 1,274 | ||||||
Sonic Automotive, Inc. | 320 | 1,274 | ||||||
Lumber Liquidators, Inc.* | 120 | 1,267 |
MARKET | ||||||||
SHARES | VALUE | |||||||
CROCS, Inc.* | 1,020 | $ | 1,265 | |||||
Retail Ventures, Inc.* | 360 | 1,249 | ||||||
1-800-FLOWERS.com, Inc.* | 316 | 1,207 | ||||||
Krispy Kreme Doughnuts, Inc.* | 688 | 1,156 | ||||||
Global Sources Ltd.* | 210 | 1,145 | ||||||
Luby’s, Inc.* | 270 | 1,131 | ||||||
Furniture Brands International, Inc. | 510 | 1,127 | ||||||
Lear Corp.* | 790 | 1,114 | ||||||
Entravision Communications Corp. — Class A* | 690 | 1,076 | ||||||
Audiovox Corp. — Class A* | 210 | 1,052 | ||||||
Shoe Carnival, Inc.* | 110 | 1,051 | ||||||
Smith & Wesson Holding Corp.* | 458 | 1,040 | ||||||
G-III Apparel Group Ltd.* | 157 | 1,003 | ||||||
Ruby Tuesday, Inc.* | 640 | 998 | ||||||
Gaiam, Inc.* | 216 | 998 | ||||||
Conn’s, Inc.* | 116 | 984 | ||||||
Hovnanian Enterprises, Inc. — Class A* | 570 | 980 | ||||||
Build-A-Bear Workshop, Inc.* | 198 | 962 | ||||||
Perry Ellis International, Inc.* | 150 | 951 | ||||||
Learning Tree International, Inc.* | 110 | 937 | ||||||
Dana Holding Corp.* | 1,220 | 903 | ||||||
Amerigon, Inc.* | 270 | 880 | ||||||
Global Traffic Network, Inc.* | 150 | 876 | ||||||
Quantum Fuel Systems Technologies Worldwide, Inc.* | 1,010 | 859 | ||||||
Rex Stores Corp.* | 105 | 847 | ||||||
Hooker Furniture Corp. | 110 | 843 | ||||||
American Apparel, Inc.* | 418 | 832 | ||||||
Stoneridge, Inc.* | 180 | 821 | ||||||
Martha Stewart Omnimedia, Inc.* | 310 | 806 | ||||||
Cumulus Media, Inc. — Class A* | 320 | 797 | ||||||
Princeton Review, Inc.* | 160 | 789 | ||||||
Valassis Communications, Inc.* | 590 | 779 | ||||||
Kenneth Cole Productions, Inc. — Class A | 110 | 779 | ||||||
Beazer Homes USA, Inc.* | 480 | 758 | ||||||
Fuqi International, Inc.* | 116 | 726 | ||||||
Talbots, Inc. | 300 | 717 | ||||||
Syms Corp.* | 80 | 710 | ||||||
Wonder Auto Technology, Inc.* | 180 | 706 | ||||||
Town Sports International Holdings, Inc.* | 218 | 695 | ||||||
Value Line, Inc. | 20 | 690 | ||||||
New York & Company, Inc.* | 290 | 673 | ||||||
Primedia, Inc. | 310 | 673 | ||||||
MarineMax, Inc.* | 197 | 668 | ||||||
Lincoln Educational Services Corp.* | 50 | 663 | ||||||
Marine Products Corp. | 116 | 652 | ||||||
Nautilus, Inc.* | 280 | 619 | ||||||
Russ Berrie & Company, Inc.* | 207 | 615 | ||||||
Tuesday Morning Corp.* | 370 | 603 | ||||||
Isle of Capri Casinos, Inc.* | 187 | 598 | ||||||
Palm Harbor Homes, Inc.* | 120 | 598 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 89 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Visteon Corp.* | 1,610 | $ | 564 | |||||
Playboy Enterprises, Inc. — Class B* | 260 | 562 | ||||||
McClatchy Company — Class A | 700 | 560 | ||||||
Hayes Lemmerz International, Inc.* | 1,240 | 558 | ||||||
AH Belo Corp. — Class A | 250 | 545 | ||||||
Dover Downs Gaming & Entertainment, Inc. | 170 | 541 | ||||||
Champion Enterprises, Inc.* | 960 | 538 | ||||||
Brookfield Homes Corp. | 120 | 518 | ||||||
Bluegreen Corp.* | 165 | 516 | ||||||
Great Wolf Resorts, Inc.* | 330 | 508 | ||||||
Media General, Inc. | 280 | 490 | ||||||
O’Charleys, Inc. | 220 | 440 | ||||||
Lodgian, Inc.* | 199 | 424 | ||||||
Charter Communications, Inc. — Class A* | 5,020 | 411 | ||||||
Pier 1 Imports, Inc.* | 1,090 | 403 | ||||||
Entercom Communications Corp. | 320 | 394 | ||||||
Crown Media Holdings, Inc. — Class A* | 130 | 371 | ||||||
Riviera Holdings Corp.* | 120 | 360 | ||||||
Lin TV Corp. — Class A* | 330 | 360 | ||||||
Citadel Broadcasting Corp.* | 2,230 | 357 | ||||||
Stein Mart, Inc.* | 310 | 350 | ||||||
Ruth’s Chris Steak House* | 246 | 339 | ||||||
Bidz.com, Inc.* | 70 | 322 | ||||||
Rick’s Cabaret International, Inc.* | 80 | 319 | ||||||
RH Donnelley Corp.* | 850 | 315 | ||||||
Borders Group, Inc.* | 740 | 296 | ||||||
Einstein Noah Restaurant Group, Inc.* | 50 | 288 | ||||||
Cache, Inc.* | 140 | 283 | ||||||
Six Flags, Inc.* | 890 | 276 | ||||||
Dover Motorsports, Inc. | 190 | 247 | ||||||
Casual Male Retail Group, Inc.* | 460 | 239 | ||||||
Lee Enterprises, Inc. | 550 | 226 | ||||||
Libbey, Inc. | 180 | 225 | ||||||
Gray Television, Inc. | 530 | 212 | ||||||
Fleetwood Enterprises, Inc.* | 940 | 94 | ||||||
Aristotle Corp.* | 10 | 36 | ||||||
Total Consumer Discretionary | 1,005,512 | |||||||
UTILITIES 2.9% | ||||||||
Piedmont Natural Gas Co. | 900 | 28,503 | ||||||
ITC Holdings Corp. | 610 | 26,645 | ||||||
Westar Energy, Inc. | 1,290 | 26,458 | ||||||
New Jersey Resources Corp. | 517 | 20,344 | ||||||
WGL Holdings, Inc. | 610 | 19,941 | ||||||
Nicor, Inc. | 559 | 19,420 | ||||||
Cleco Corp. | 740 | 16,894 | ||||||
IDACORP, Inc. | 560 | 16,492 | ||||||
Portland General Electric Co. | 770 | 14,992 | ||||||
South Jersey Industries, Inc. | 367 | 14,625 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Northwest Natural Gas Co. | 320 | $ | 14,154 | |||||
Southwest Gas Corp. | 530 | 13,367 | ||||||
Black Hills Corp. | 470 | 12,671 | ||||||
Laclede Group, Inc. | 270 | 12,647 | ||||||
Avista Corp. | 650 | 12,597 | ||||||
Unisource Energy Corp. | 420 | 12,331 | ||||||
California Water Service Group | 240 | 11,143 | ||||||
PNM Resources, Inc. | 1,059 | 10,675 | ||||||
NorthWestern Corp. | 440 | 10,327 | ||||||
Allete, Inc. | 320 | 10,326 | ||||||
El Paso Electric Co.* | 547 | 9,895 | ||||||
CH Energy Group, Inc. | 187 | 9,610 | ||||||
UIL Holding Corp. | 310 | 9,309 | ||||||
Mge Energy, Inc. | 270 | 8,910 | ||||||
Empire District Electric Co. | 406 | 7,146 | ||||||
Ormat Technologies, Inc. | 217 | 6,916 | ||||||
American States Water Co. | 206 | 6,794 | ||||||
SJW Corp. | 160 | 4,790 | ||||||
Central Vermont Public Service Corp. | 140 | 3,340 | ||||||
Middlesex Water Co. | 157 | 2,705 | ||||||
Chesapeake Utilities Corp. | 79 | 2,487 | ||||||
Connecticut Water Service, Inc. | 96 | 2,266 | ||||||
Consolidated Water Company, Inc. | 180 | 2,250 | ||||||
Cadiz, Inc.* | 150 | 1,876 | ||||||
Southwest Water Co. | 300 | 966 | ||||||
US Geothermal, Inc.* | 760 | 631 | ||||||
Synthesis Energy Systems, Inc.* | 310 | 211 | ||||||
Total Utilities | 404,654 | |||||||
ENERGY 2.9% | ||||||||
Comstock Resources, Inc.* | 560 | 26,465 | ||||||
EXCO Resources, Inc.* | 1,840 | 16,670 | ||||||
Concho Resources, Inc.* | 680 | 15,518 | ||||||
Nordic American Tanker Shipping | 420 | 14,175 | ||||||
Penn Virginia Corp. | 510 | 13,250 | ||||||
Arena Resources, Inc.* | 468 | 13,146 | ||||||
World Fuel Services Corp. | 350 | 12,950 | ||||||
Bill Barrett Corp.* | 450 | 9,508 | ||||||
Contango Oil & Gas Co.* | 160 | 9,008 | ||||||
CARBO Ceramics, Inc. | 250 | 8,882 | ||||||
Goodrich Petroleum Corp.* | 280 | 8,386 | ||||||
Bristow Group, Inc.* | 300 | 8,037 | ||||||
Dril-Quip, Inc.* | 380 | 7,794 | ||||||
Gran Tierra Energy, Inc.* | 2,720 | 7,616 | ||||||
McMoRan Exploration Co.* | 740 | 7,252 | ||||||
GulfMark Offshore, Inc.* | 280 | 6,661 | ||||||
Basic Energy Services, Inc.* | 510 | 6,650 | ||||||
Precision Drilling Trust | 783 | 6,572 | ||||||
Swift Energy Co.* | 377 | 6,337 | ||||||
Atlas America, Inc. | 420 | 6,237 | ||||||
Lufkin Industries, Inc. | 180 | 6,210 | ||||||
USEC, Inc.* | 1,370 | 6,151 |
90 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Ship Finance International Ltd. | 520 | $ | 5,746 | |||||
Carrizo Oil & Gas, Inc.* | 340 | 5,474 | ||||||
Vaalco Energy, Inc.* | 730 | 5,431 | ||||||
GMX Resources, Inc.* | 208 | 5,267 | ||||||
James River Coal Co.* | 340 | 5,212 | ||||||
Complete Production Services, Inc.* | 590 | 4,808 | ||||||
BPZ Resources, Inc.* | 739 | 4,730 | ||||||
Hornbeck Offshore Services, Inc.* | 280 | 4,575 | ||||||
Rosetta Resources, Inc.* | 627 | 4,439 | ||||||
Petroleum Development Corp.* | 180 | 4,333 | ||||||
Stone Energy Corp.* | 390 | 4,298 | ||||||
Newpark Resources, Inc.* | 1,100 | 4,070 | ||||||
Willbros Group, Inc.* | 480 | 4,066 | ||||||
Parker Drilling Co.* | 1,390 | 4,031 | ||||||
Berry Petroleum Co. — Class A | 520 | 3,931 | ||||||
NATCO Group, Inc.* | 250 | 3,795 | ||||||
ION Geophysical Corp.* | 1,100 | 3,773 | ||||||
Delta Petroleum Corp.* | 760 | 3,618 | ||||||
International Coal Group, Inc.* | 1,560 | 3,588 | ||||||
Petroquest Energy, Inc.* | 530 | 3,583 | ||||||
Cal Dive International, Inc.* | 540 | 3,515 | ||||||
RPC, Inc. | 360 | 3,514 | ||||||
Pioneer Drilling Co.* | 610 | 3,398 | ||||||
Clayton Williams Energy, Inc.* | 70 | 3,181 | ||||||
Knightsbridge Tankers Ltd. | 210 | 3,076 | ||||||
Golar LNG Ltd. | 430 | 2,907 | ||||||
Western Refining, Inc. | 370 | 2,871 | ||||||
Matrix Service Co.* | 320 | 2,454 | ||||||
PHI, Inc.* | 170 | 2,382 | ||||||
Gulf Island Fabrication, Inc. | 150 | 2,161 | ||||||
Bronco Drilling Company, Inc.* | 320 | 2,067 | ||||||
ATP Oil & Gas Corp.* | 340 | 1,989 | ||||||
Superior Well Services, Inc.* | 198 | 1,980 | ||||||
Crosstex Energy, Inc. | 490 | 1,911 | ||||||
Allis-Chalmers Energy, Inc.* | 339 | 1,864 | ||||||
Brigham Exploration Co.* | 573 | 1,834 | ||||||
Clean Energy Fuels Corp.* | 300 | 1,812 | ||||||
Dawson Geophysical Co.* | 100 | 1,781 | ||||||
Harvest Natural Resources, Inc.* | 400 | 1,720 | ||||||
Cheniere Energy, Inc.* | 600 | 1,710 | ||||||
Oilsands Quest, Inc.* | 2,280 | 1,664 | ||||||
Panhandle Oil and Gas, Inc. — Class A | 90 | 1,620 | ||||||
Natural Gas Services Group, Inc.* | 150 | 1,519 | ||||||
Warren Resources, Inc.* | 720 | 1,433 | ||||||
T-3 Energy Services, Inc. — Class A* | 150 | 1,416 | ||||||
FX Energy, Inc.* | 500 | 1,395 | ||||||
Rentech, Inc.* | 2,040 | 1,387 | ||||||
Westmoreland Coal Co.* | 120 | 1,332 | ||||||
APCO Argentina, Inc. | 50 | 1,331 | ||||||
Gulfport Energy Corp.* | 317 | 1,252 | ||||||
Alon USA Energy, Inc. | 130 | 1,189 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Energy XXI Bermuda Ltd. | 1,470 | $ | 1,161 | |||||
Toreador Resources Corp.* | 210 | 1,153 | ||||||
CVR Energy, Inc.* | 280 | 1,120 | ||||||
ENGlobal Corp.* | 327 | 1,063 | ||||||
Parallel Petroleum Corp.* | 510 | 1,025 | ||||||
OYO Geospace Corp.* | 55 | 961 | ||||||
Union Drilling, Inc.* | 170 | 882 | ||||||
Delek US Holdings, Inc. | 157 | 831 | ||||||
Approach Resources, Inc.* | 110 | 804 | ||||||
Bolt Technology Corp.* | 110 | 766 | ||||||
GeoGlobal Resources, Inc.* | 470 | 752 | ||||||
Double Eagle Petroleum Co.* | 100 | 702 | ||||||
Trico Marine Services, Inc.* | 157 | 702 | ||||||
Endeavour International Corp.* | 1,400 | 700 | ||||||
BMB Munai, Inc.* | 490 | 681 | ||||||
Northern Oil And Gas, Inc.* | 260 | 676 | ||||||
Callon Petroleum Co.* | 258 | 671 | ||||||
Sulphco, Inc.* | 710 | 667 | ||||||
Venoco, Inc.* | 246 | 667 | ||||||
TXCO Resources, Inc.* | 430 | 641 | ||||||
Rex Energy Corp.* | 207 | 609 | ||||||
Houston American Energy Corp. | 180 | 608 | ||||||
Georesources, Inc.* | 70 | 608 | ||||||
Meridian Resource Corp.* | 950 | 541 | ||||||
Energy Partners Ltd.* | 390 | 527 | ||||||
PrimeEnergy Corp.* | 10 | 520 | ||||||
Tri-Valley Corp.* | 280 | 504 | ||||||
RAM Energy Resources, Inc.* | 570 | 502 | ||||||
Uranium Resources, Inc.* | 610 | 470 | ||||||
Mitcham Industries, Inc.* | 116 | 461 | ||||||
Gasco Energy, Inc.* | 1,150 | 449 | ||||||
Evergreen Energy Inc.* | 1,519 | 441 | ||||||
National Coal Corp.* | 340 | 432 | ||||||
GeoMet, Inc.* | 230 | 396 | ||||||
Abraxas Petroleum Corp.* | 517 | 372 | ||||||
American Oil & Gas, Inc.* | 450 | 360 | ||||||
GreenHunter Energy, Inc.* | 60 | 295 | ||||||
Cano Petroleum, Inc.* | 580 | 255 | ||||||
Pacific Ethanol, Inc.* | 540 | 238 | ||||||
Aventine Renewable Energy Holdings, Inc.* | 360 | 234 | ||||||
Quest Resource Corp.* | 340 | 150 | ||||||
Geokinetics, Inc.* | 60 | 148 | ||||||
Total Energy | 401,653 | |||||||
CONSUMER STAPLES 2.5% | ||||||||
Ralcorp Holdings, Inc.* | 690 | 40,296 | ||||||
Flowers Foods, Inc. | 949 | 23,118 | ||||||
Chattem, Inc.* | 208 | 14,878 | ||||||
Ruddick Corp. | 520 | 14,378 | ||||||
Casey’s General Stores, Inc. | 620 | 14,117 | ||||||
Fresh Del Monte Produce, Inc.* | 517 | 11,591 | ||||||
Winn-Dixie Stores, Inc.* | 660 | 10,626 | ||||||
TreeHouse Foods, Inc.* | 380 | 10,351 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 91 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Hain Celestial Group, Inc.* | 500 | $ | 9,545 | |||||
United Natural Foods, Inc.* | 530 | 9,445 | ||||||
Universal Corp. | 310 | 9,260 | ||||||
Lancaster Colony Corp. | 250 | 8,575 | ||||||
Sanderson Farms, Inc. | 246 | 8,502 | ||||||
Green Mountain Coffee Roasters, Inc.* | 208 | 8,050 | ||||||
Chiquita Brands International, Inc.* | 530 | 7,833 | ||||||
Lance, Inc. | 330 | 7,570 | ||||||
Tootsie Roll Industries, Inc. | 290 | 7,427 | ||||||
Nash Finch Co. | 157 | 7,048 | ||||||
Nu Skin Enterprises, Inc. | 610 | 6,362 | ||||||
Spartan Stores, Inc. | 270 | 6,277 | ||||||
J&J Snack Foods Corp. | 170 | 6,100 | ||||||
Pantry, Inc.* | 270 | 5,791 | ||||||
WD-40 Co. | 200 | 5,658 | ||||||
Vector Group Ltd. | 410 | 5,584 | ||||||
Darling International, Inc.* | 1,000 | 5,490 | ||||||
Smart Balance, Inc.* | 770 | 5,236 | ||||||
American Oriental Bioengineering, Inc.* | 757 | 5,140 | ||||||
Weis Markets, Inc. | 140 | 4,708 | ||||||
Central Garden and Pet Co. — Class A* | 790 | 4,661 | ||||||
Cal-Maine Foods, Inc. | 159 | 4,563 | ||||||
Prestige Brands Holdings, Inc. — Class A* | 407 | 4,294 | ||||||
Diamond Foods, Inc. | 199 | 4,010 | ||||||
Elizabeth Arden, Inc.* | 300 | 3,783 | ||||||
Pricesmart, Inc. | 180 | 3,719 | ||||||
Andersons, Inc. | 220 | 3,626 | ||||||
Alliance One International, Inc.* | 1,090 | 3,205 | ||||||
Star Scientific, Inc.* | 810 | 3,102 | ||||||
Zhongpin, Inc.* | 230 | 2,760 | ||||||
USANA Health Sciences, Inc.* | 80 | 2,739 | ||||||
Boston Beer Company, Inc. — Class A* | 96 | 2,726 | ||||||
Great Atlantic & Pacific Tea Company, Inc* | 430 | 2,696 | ||||||
Ingles Markets, Inc. — Class A | 150 | 2,639 | ||||||
Coca-Cola Bottling Company | ||||||||
Consolidated | 55 | 2,528 | ||||||
Village Super Market | 40 | 2,296 | ||||||
Imperial Sugar Company, Inc. | 150 | 2,151 | ||||||
Farmer Brothers Co. | 80 | 1,995 | ||||||
Alico, Inc. | 40 | 1,640 | ||||||
China Sky One Medical, Inc.* | 99 | 1,583 | ||||||
Calavo Growers, Inc. | 130 | 1,495 | ||||||
Griffin Land & Nurseries, Inc. | 40 | 1,474 | ||||||
Synutra International, Inc.* | 130 | 1,433 | ||||||
American Dairy, Inc.* | 90 | 1,354 | ||||||
Susser Holdings Corp.* | 100 | 1,329 | ||||||
B&G Foods, Inc. | 246 | 1,328 | ||||||
Inter Parfums, Inc. | 170 | 1,306 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Arden Group, Inc. | 10 | $ | 1,260 | |||||
National Beverage Corp.* | 130 | 1,170 | ||||||
Omega Protein Corp.* | 230 | 922 | ||||||
Schiff Nutrition International, Inc.* | 110 | 657 | ||||||
HQ Sustainable Maritime Industries, Inc.* | 80 | 626 | ||||||
Lifeway Foods, Inc.* | 60 | 539 | ||||||
Mannatech, Inc. | 190 | 466 | ||||||
AgFeed Industries, Inc.* | 240 | 386 | ||||||
Reddy Ice Holdings, Inc. | 217 | 312 | ||||||
Total Consumer Staples | 355,729 | |||||||
MATERIALS 2.4% | ||||||||
Compass Minerals International, Inc. | 400 | 23,464 | ||||||
Royal Gold, Inc. | 360 | 17,716 | ||||||
Olin Corp. | 920 | 16,634 | ||||||
Rock-Tenn Co. — Class A | 467 | 15,962 | ||||||
Silgan Holdings, Inc. | 310 | 14,821 | ||||||
Sensient Technologies Corp. | 590 | 14,089 | ||||||
Calgon Carbon Corp.* | 660 | 10,138 | ||||||
Texas Industries, Inc. | 290 | 10,005 | ||||||
H.B. Fuller Co. | 600 | 9,666 | ||||||
Minerals Technologies, Inc. | 230 | 9,407 | ||||||
Worthington Industries, Inc. | 790 | 8,706 | ||||||
Arch Chemicals, Inc. | 307 | 8,003 | ||||||
OM Group, Inc.* | 377 | 7,958 | ||||||
Amcol International Corp. | 320 | 6,704 | ||||||
Wausau Paper Corp. | 540 | 6,178 | ||||||
Coeur d’Alene Mines Corp.* | 6,770 | 5,958 | ||||||
Deltic Timber Corp. | 130 | 5,948 | ||||||
NewMarket Corp. | 170 | 5,935 | ||||||
Hecla Mining Co.* | 2,080 | 5,824 | ||||||
Koppers Holdings, Inc. | 260 | 5,621 | ||||||
A. Schulman, Inc. | 327 | 5,559 | ||||||
Rockwood Holdings, Inc.* | 510 | 5,508 | ||||||
Balchem Corp. | 220 | 5,480 | ||||||
W.R. Grace & Co.* | 890 | 5,313 | ||||||
Solutia, Inc.* | 1,160 | 5,220 | ||||||
Glatfelter | 560 | 5,208 | ||||||
Zep, Inc. | 258 | 4,982 | ||||||
Kaiser Aluminum Corp. | 187 | 4,211 | ||||||
RTI International Metals, Inc.* | 280 | 4,007 | ||||||
Westlake Chemical Corp. | 240 | 3,910 | ||||||
Ferro Corp. | 540 | 3,807 | ||||||
Schweitzer-Mauduit International, Inc. | 190 | 3,804 | ||||||
Stepan Co. | 80 | 3,759 | ||||||
Haynes International, Inc.* | 150 | 3,693 | ||||||
PolyOne Corp.* | 1,150 | 3,623 | ||||||
Headwaters, Inc.* | 517 | 3,490 | ||||||
Brush Engineered Materials, Inc.* | 250 | 3,180 | ||||||
Zoltek Companies, Inc.* | 340 | 3,057 | ||||||
Myers Industries, Inc. | 350 | 2,800 | ||||||
Allied Nevada Gold Corp.* | 550 | 2,783 |
92 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
American Vanguard Corp. | 229 | $ | 2,679 | |||||
Innophos Holdings, Inc. | 130 | 2,575 | ||||||
Stillwater Mining Co.* | 490 | 2,421 | ||||||
Spartech Corp. | 378 | 2,366 | ||||||
Olympic Steel, Inc. | 106 | 2,159 | ||||||
A.M. Castle & Co. | 198 | 2,144 | ||||||
Quaker Chemical Corp. | 130 | 2,139 | ||||||
Graphic Packaging Holding Co.* | 1,780 | 2,029 | ||||||
Horsehead Holding Corp.* | 430 | 2,021 | ||||||
Louisiana-Pacific Corp. | 1,270 | 1,981 | ||||||
Landec Corp.* | 290 | 1,908 | ||||||
Buckeye Technologies, Inc.* | 480 | 1,747 | ||||||
LSB Industries, Inc.* | 207 | 1,722 | ||||||
Innospec, Inc. | 287 | 1,690 | ||||||
GenTek, Inc.* | 110 | 1,656 | ||||||
Neenah Paper, Inc. | 180 | 1,591 | ||||||
U S Concrete, Inc.* | 450 | 1,512 | ||||||
Penford Corp. | 140 | 1,417 | ||||||
AEP Industries, Inc.* | 75 | 1,319 | ||||||
ShengdaTech, Inc.* | 370 | 1,302 | ||||||
Universal Stainless & Alloy* | 80 | 1,159 | ||||||
Clearwater Paper Corp.* | 137 | 1,149 | ||||||
NL Industries, Inc. | 80 | 1,072 | ||||||
ICO, Inc.* | 337 | 1,065 | ||||||
General Moly, Inc.* | 770 | 909 | ||||||
Mercer International, Inc.* | 370 | 710 | ||||||
Bway Holding Co.* | 89 | 708 | ||||||
Flotek Industries, Inc.* | 280 | 706 | ||||||
Apex Silver Mines Ltd.* | 720 | 706 | ||||||
KapStone Paper and Packaging Corp.* | 217 | 516 | ||||||
General Steel Holdings, Inc.* | 130 | 512 | ||||||
United States Lime & Minerals, Inc.* | 20 | 479 | ||||||
AbitibiBowater, Inc.* | 649 | 305 | ||||||
China Precision Steel, Inc.* | 208 | 260 | ||||||
Sutor Technology Group Ltd.* | 90 | 208 | ||||||
Boise, Inc.* | 440 | 189 | ||||||
Verso Paper Corp. | 167 | 172 | ||||||
Total Materials | 341,334 | |||||||
TELECOMMUNICATION SERVICES 0.8% | ||||||||
tw telecom Inc.* | 1,810 | 15,331 | ||||||
NTELOS Holdings Corp. | 370 | 9,124 | ||||||
Shenandoah | ||||||||
Telecommunications Co. | 290 | 8,135 | ||||||
Syniverse Holdings, Inc.* | 630 | 7,522 | ||||||
Centennial | ||||||||
Communications Corp.* | 830 | 6,690 | ||||||
Premiere Global Services, Inc.* | 760 | 6,544 | ||||||
Iowa Telecommunications | ||||||||
Services, Inc. | 390 | 5,569 | ||||||
Cincinnati Bell, Inc.* | 2,830 | 5,462 | ||||||
Alaska Communications | ||||||||
Systems Group, Inc. | 530 | 4,971 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Cbeyond, Inc.* | 290 | $ | 4,634 | |||||
General Communication, Inc. — Class A* | 560 | 4,530 | ||||||
Cogent Communications Group, Inc.* | 549 | 3,585 | ||||||
Fairpoint Communications, Inc. | 1,090 | 3,575 | ||||||
USA Mobility, Inc.* | 290 | 3,355 | ||||||
Consolidated Communications Holdings, Inc. | 280 | 3,326 | ||||||
Atlantic Tele-Network, Inc. | 120 | 3,186 | ||||||
Global Crossing* | 316 | 2,509 | ||||||
PAETEC Holding Corp.* | 1,520 | 2,189 | ||||||
iPCS, Inc. — Class A* | 210 | 1,441 | ||||||
ICO Global Communications Holdings Ltd.* | 1,270 | 1,435 | ||||||
Ibasis, Inc.* | 370 | 522 | ||||||
Hungarian Telephone & Cable Corp.* | 60 | 516 | ||||||
Vonage Holdings Corp.* | 630 | 416 | ||||||
Virgin Mobile USA, Inc. — Class A* | 450 | 378 | ||||||
TerreStar Corp.* | 710 | 284 | ||||||
IDT Corp. — Class B* | 660 | 264 | ||||||
FiberTower Corp.* | 1,480 | 237 | ||||||
Globalstar, Inc.* | 547 | 109 | ||||||
Total Telecommunication Services | 105,839 | |||||||
Total Common Stocks (Cost $9,427,482) | 9,181,157 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 25.0% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 895,442 | 895,442 | |||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 895,442 | 895,442 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 895,442 | 895,442 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 808,204 | 808,204 | ||||||
Total Repurchase Agreements (Cost $3,494,530) | 3,494,530 | |||||||
Total Investments 90.7% (Cost $12,922,012) | $ | 12,675,687 | ||||||
Other Assets in Excess of Liabilities – 9.3% | $ | 1,302,640 | ||||||
Net Assets – 100.0% | $ | 13,978,327 | ||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 93 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
RUSSELL 2000® 1.5x STRATEGY FUND
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $6,754,100) | 137 | $ | 292,469 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENTS | ||||||||
Goldman Sachs International January 2009 Russell 2000 Index Swap, Terminating 01/08/09** (Notional Market Value $2,858,200) | 5,723 | $ | 234,201 | |||||
Credit Suisse Capital, LLC March 2009 Russell 2000 Index Swap, Terminating 03/26/09** (Notional Market Value $2,313,459) | 4,632 | 109,679 | ||||||
(Total Notional Market Value $5,171,659) | $ | 343,880 | ||||||
* | Non-Income Producing Security. | |
** | Total Return based on Russell 2000 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. |
94 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
INVERSE RUSSELL 2000® STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 19.3% | ||||||||
Fannie Mae†† 0.04% due 01/05/09 | $ | 500,000 | $ | 499,999 | ||||
Farmer Mac* 0.07% due 01/07/09 | 500,000 | 499,995 | ||||||
Freddie Mac†† 0.05% due 01/29/09 | 500,000 | 499,981 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $1,499,975) | 1,499,975 | |||||||
REPURCHASE AGREEMENTS† 53.4% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 1,064,461 | 1,064,461 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,064,461 | 1,064,461 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | �� | 1,064,461 | 1,064,461 | |||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 960,754 | 960,754 | ||||||
Total Repurchase Agreements (Cost $4,154,137) | 4,154,137 | |||||||
Total Long Securities 72.7% (Cost $5,654,112) | $ | 5,654,112 | ||||||
Other Assets in Excess of Liabilities – 27.3% | $ | 2,123,732 | ||||||
Net Assets – 100.0% | $ | 7,777,844 | ||||||
Unrealized | ||||||||
Contracts | Loss | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $2,958,000) | 60 | $ | (102,397 | ) | ||||
UNREALIZED | ||||||||
UNITS | LOSS | |||||||
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT | ||||||||
Credit Suisse Capital, LLC March 2009 Russell 2000 Index Swap, Terminating 03/26/09** (Notional Market Value $2,596,107) | 5,198 | $ | (51,248 | ) | ||||
Goldman Sachs International January 2009 Russell 2000 Index Swap, Terminating 01/08/09** (Notional Market Value $2,102,528) | 4,210 | (113,872 | ) | |||||
(Total Notional Market Value $4,698,635) | $ | (165,120 | ) | |||||
* | 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 Russell 2000 Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
†† | On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 95 |
SCHEDULE OF INVESTMENTS
December 31, 2008
GOVERNMENT LONG BOND 1.2x STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 28.4% | ||||||||
Federal Farm Credit Bank* 0.03% due 01/07/09 | $ | 5,000,000 | $ | 4,999,979 | ||||
Farmer Mac* 0.07% due 01/07/09 | 5,000,000 | 4,999,951 | ||||||
Freddie Mac†† 0.05% due 01/29/09 | 5,000,000 | 4,999,812 | ||||||
Federal Home Loan Bank* 0.20% due 01/06/09 | 2,000,000 | 1,999,956 | ||||||
Fannie Mae†† 0.04% due 01/05/09 | 1,060,000 | 1,059,996 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $18,059,694) | 18,059,694 | |||||||
U.S. TREASURY OBLIGATIONS 46.6% | ||||||||
U.S. Treasury Bond 4.50% due 05/15/38 | 21,520,000 | 29,650,525 | ||||||
Total U.S. Treasury Obligations | ||||||||
(Cost $21,712,900) | 29,650,525 | |||||||
REPURCHASE AGREEMENTS† 32.4% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 5,271,514 | 5,271,514 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 5,271,514 | 5,271,514 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 5,271,514 | 5,271,514 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 4,757,932 | 4,757,932 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $20,572,474) | 20,572,474 | |||||||
Total Investments 107.4% | ||||||||
(Cost $60,345,068) | $ | 68,282,693 | ||||||
Liabilities in Excess of Other Assets – (7.4)% | $ | (4,688,484 | ) | |||||
Net Assets – 100.0% | $ | 63,594,209 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $89,858,344) | 651 | $ | 3,790,546 | |||||
* | 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. | |
† | Repurchase Agreements — See Note 5. | |
†† | On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. |
96 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
INVERSE GOVERNMENT LONG BOND STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 32.9% | ||||||||
Federal Home Loan Bank* 0.20% due 01/06/09 | $ | 2,000,000 | $ | 1,999,956 | ||||
Fannie Mae** 0.04% due 01/05/09 | 500,000 | 499,998 | ||||||
Farmer Mac* 0.07% due 01/07/09 | 500,000 | 499,995 | ||||||
Freddie Mac** 0.05% due 01/29/09 | 500,000 | 499,981 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $3,499,930) | 3,499,930 | |||||||
CONTRACTS | ||||||||
OPTIONS PURCHASED 0.0% | ||||||||
Call Options On: | ||||||||
March 2009 U.S. Treasury Bond Index Futures Contracts Expiring February 2009 with strike price of 200† | 66 | — | ||||||
Total Options Purchased | ||||||||
(Cost $1,163) | — | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS†† 65.8% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 1,790,432 | 1,790,432 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,790,432 | 1,790,432 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 1,790,432 | 1,790,432 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,615,997 | 1,615,997 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $6,987,293) | 6,987,293 | |||||||
Total Investments 98.7% | ||||||||
(Cost $10,488,386) | $ | 10,487,223 | ||||||
Other Assets in Excess of Liabilities – 1.3% | $ | 137,672 | ||||||
Net Assets – 100.0% | $ | 10,624,895 | ||||||
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $18,496,188) | 134 | $ | 173,590 | |||||
* | 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. | |
** | On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. | |
† | Security is fair valued. | |
†† | Repurchase Agreements — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 97 |
SCHEDULE OF INVESTMENTS
December 31, 2008
EUROPE 1.25x STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 85.0% | ||||||||
FINANCIALS 18.3% | ||||||||
HSBC Holdings PLC — SP ADR | 7,100 | $ | 345,557 | |||||
Banco Santander Central Hispano SA — SP ADR | 28,900 | 274,261 | ||||||
Banco Bilbao Vizcaya Argentaria SA — SP ADR | 21,140 | 264,039 | ||||||
Allianz SE — SP ADR | 21,530 | 233,170 | ||||||
AXA — SP ADR | 10,200 | 229,194 | ||||||
UBS AG — SP ADR* | 15,370 | 219,791 | ||||||
Credit Suisse Group AG — SP ADR | 6,530 | 184,538 | ||||||
Deutsche Bank AG— SP ADR | 3,780 | 153,808 | ||||||
Barclays PLC — SP ADR | 11,170 | 109,466 | ||||||
ING Groep NV — SP ADR | 9,820 | 109,002 | ||||||
Lloyds TSB Group PLC — SP ADR | 11,460 | 88,242 | ||||||
Willis Group Holdings Ltd. | 2,460 | 61,205 | ||||||
Allied Irish Banks PLC — SP ADR | 5,290 | 24,810 | ||||||
Total Financials | 2,297,083 | |||||||
HEALTH CARE 18.1% | ||||||||
Novartis AG — SP ADR | 13,820 | 687,684 | ||||||
GlaxoSmithKline PLC — SP ADR | 15,500 | 577,685 | ||||||
Sanofi-Aventis — SP ADR | 13,870 | 446,059 | ||||||
AstraZeneca PLC — SP ADR | 7,530 | 308,956 | ||||||
Novo Nordisk A/S — SP ADR | 2,490 | 127,961 | ||||||
Teva Pharmaceutical Industries Ltd. — SP ADR | 1,830 | 77,903 | ||||||
Alcon, Inc. — SP ADR | 510 | 45,487 | ||||||
Total Health Care | 2,271,735 | |||||||
TELECOMMUNICATION SERVICES 15.4% | ||||||||
Telefonica SA — SP ADR | 7,870 | 530,359 | ||||||
Vodafone Group PLC — SP ADR | 23,390 | 478,092 | ||||||
France Telecom SA — SP ADR | 15,990 | 448,839 | ||||||
Deutsche Telekom AG — SP ADR | 18,380 | 281,214 | ||||||
BT Group PLC — SP ADR | 9,250 | 184,815 | ||||||
Total Telecommunication Services | 1,923,319 | |||||||
ENERGY 14.3% | ||||||||
BP PLC — SP ADR | 12,370 | 578,174 | ||||||
Total SA — SP ADR | 9,340 | 516,502 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Royal Dutch Shell PLC — SP ADR | 7,530 | $ | 398,638 | |||||
Eni SpA — SP ADR | 5,590 | 267,314 | ||||||
Compagnie Generale de Geophysique SA, Inc. — SP ADR* | 1,740 | 26,082 | ||||||
Total Energy | 1,786,710 | |||||||
CONSUMER STAPLES 5.4% | ||||||||
Unilever NV | 12,030 | 295,337 | ||||||
Diageo PLC — SP ADR | 4,700 | 266,678 | ||||||
British American Tobacco PLC — SP ADR | 2,160 | 114,350 | ||||||
Total Consumer Staples | 676,365 | |||||||
INFORMATION TECHNOLOGY 4.0% | ||||||||
Nokia Oyj — SP ADR | 15,490 | 241,644 | ||||||
SAP AG — SP ADR | 4,700 | 170,234 | ||||||
Telefonaktiebolaget LM Ericsson — SP ADR | 11,530 | 90,049 | ||||||
Total Information Technology | 501,927 | |||||||
MATERIALS 3.9% | ||||||||
BHP Billiton Ltd. — SP ADR | 3,790 | 162,591 | ||||||
Anglo American PLC — SP ADR | 10,080 | 117,130 | ||||||
Rio Tinto PLC — SP ADR | 960 | 85,354 | ||||||
ArcelorMittal | 2,960 | 72,786 | ||||||
Syngenta AG — SP ADR | 1,380 | 54,013 | ||||||
Total Materials | 491,874 | |||||||
INDUSTRIALS 3.4% | ||||||||
Siemens AG — SP ADR | 3,430 | 259,823 | ||||||
Koninklijke Philips Electronics NV— SP ADR | 4,460 | 88,620 | ||||||
Ryanair Holdings PLC — SP ADR* | 2,740 | 79,679 | ||||||
Total Industrials | 428,122 | |||||||
CONSUMER DISCRETIONARY 1.8% | ||||||||
Daimler AG— SP ADR | 4,470 | 171,112 | ||||||
Carnival PLC — SP ADR | 2,410 | 54,586 | ||||||
Total Consumer Discretionary | 225,698 | |||||||
UTILITIES 0.4% | ||||||||
Veolia Environnement — SP ADR | 1,620 | 51,370 | ||||||
Total Utilities | 51,370 | |||||||
Total Common Stocks | ||||||||
(Cost $9,934,771) | 10,654,203 | |||||||
98 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
EUROPE 1.25x STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENTS† 11.5% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 370,575 | $ | 370,575 | ||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 370,575 | 370,575 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 370,575 | 370,575 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 334,473 | 334,473 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $1,446,198) | 1,446,198 | |||||||
Total Investments 96.5% | ||||||||
(Cost $11,380,969) | $ | 12,100,401 | ||||||
Other Assets in Excess of Liabilities – 3.5% | $ | 435,077 | ||||||
Net Assets – 100.0% | $ | 12,535,478 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
CURRENCY FUTURES | ||||||||
CONTRACTS PURCHASED | ||||||||
March 2009 EURO Currency Futures Contracts (Aggregate Market Value of Contracts $5,226,000) | 30 | $ | 290,962 | |||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 Dow Jones STOXX 50 Futures Contracts (Aggregate Market Value of Contracts $5,219,475) | 177 | $ | 197,709 | |||||
Country Diversification
The pie chart above reflects percentages of
the market value of Common Stocks.
the market value of Common Stocks.
* | Non-Income Producing Security. | |
† | Repurchase Agreements — See Note 5. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 99 |
SCHEDULE OF INVESTMENTS
December 31, 2008
JAPAN 1.25X STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENTS† 78.5% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 2,634,229 | $ | 2,634,229 | ||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 2,634,229 | 2,634,229 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 2,634,229 | 2,634,229 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 2,377,585 | 2,377,585 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $10,280,272) | $ | 10,280,272 | ||||||
Total Investments 78.5% | ||||||||
(Cost $10,280,272) | $ | 10,280,272 | ||||||
Other Assets in Excess of Liabilities – 21.5% | $ | 2,823,624 | ||||||
Net Assets – 100.0% | $ | 13,103,896 | ||||||
UNREALIZED | ||||||||
CONTRACTS | GAIN | |||||||
CURRENCY FUTURES | ||||||||
CONTRACTS PURCHASED | ||||||||
March 2009 Japanese Yen Currency | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value of | ||||||||
Contracts $16,285,475) | 118 | $ | 58,612 | |||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 Nikkei 225 | ||||||||
Stock Average Index | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value of | ||||||||
Contracts $16,321,125) | 355 | $ | 920,665 | |||||
† | Repurchase Agreements — See Note 5. |
100 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
DOW 2X STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 59.0% | ||||||||
INDUSTRIALS 11.5% | ||||||||
3M Co. | 19,450 | $ | 1,119,152 | |||||
United Technologies Corp. | 19,452 | 1,042,627 | ||||||
Caterpillar, Inc. | 19,450 | 868,831 | ||||||
Boeing Co. | 19,450 | 829,932 | ||||||
General Electric Co. | 19,450 | 315,090 | ||||||
Total Industrials | 4,175,632 | |||||||
CONSUMER STAPLES 10.2% | ||||||||
Procter & Gamble Co. | 19,448 | 1,202,275 | ||||||
Wal-Mart Stores, Inc. | 19,450 | 1,090,367 | ||||||
Coca-Cola Co. | 19,450 | 880,501 | ||||||
Kraft Foods, Inc. | 19,450 | 522,233 | ||||||
Total Consumer Staples | 3,695,376 | |||||||
INFORMATION TECHNOLOGY 8.3% | ||||||||
International Business Machines Corp. | 19,450 | 1,636,912 | ||||||
Hewlett-Packard Co. | 19,450 | 705,841 | ||||||
Microsoft Corp. | 19,450 | 378,108 | ||||||
Intel Corp. | 19,450 | 285,137 | ||||||
Total Information Technology | 3,005,998 | |||||||
ENERGY 8.2% | ||||||||
Exxon Mobil Corp. | 19,450 | 1,552,693 | ||||||
Chevron Corp. | 19,450 | 1,438,717 | ||||||
Total Energy | 2,991,410 | |||||||
CONSUMER DISCRETIONARY 5.9% | ||||||||
McDonald’s Corp. | 19,450 | 1,209,595 | ||||||
Home Depot, Inc. | 19,450 | 447,739 | ||||||
Walt Disney Co. | 19,450 | 441,321 | ||||||
General Motors Corp. | 19,450 | 62,240 | ||||||
Total Consumer Discretionary | 2,160,895 | |||||||
HEALTH CARE 5.8% | ||||||||
Johnson & Johnson, Inc. | 19,450 | 1,163,693 | ||||||
Merck & Company, Inc. | 19,450 | 591,280 | ||||||
Pfizer, Inc. | 19,450 | 344,460 | ||||||
Total Health Care | 2,099,433 | |||||||
FINANCIALS 3.8% | ||||||||
JPMorgan Chase & Co. | 19,449 | 613,227 | ||||||
American Express Co. | 19,450 | 360,797 | ||||||
Bank of America Corp. | 19,450 | 273,856 | ||||||
Citigroup, Inc. | 19,453 | 130,530 | ||||||
Total Financials | 1,378,410 | |||||||
TELECOMMUNICATION SERVICES 3.3% | ||||||||
Verizon Communications, Inc. | 19,446 | 659,219 | ||||||
AT&T, Inc. | 19,450 | 554,325 | ||||||
Total Telecommunication Services | 1,213,544 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
MATERIALS 2.0% | ||||||||
E.I. du Pont de Nemours and Co. | 19,450 | $ | 492,085 | |||||
Alcoa, Inc. | 19,450 | 219,007 | ||||||
Total Materials | 711,092 | |||||||
Total Common Stocks | ||||||||
(Cost $22,918,743) | 21,431,790 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 14.5% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 1,352,665 | 1,352,665 | |||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 1,352,665 | 1,352,665 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,352,665 | 1,352,665 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,220,880 | 1,220,880 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $5,278,875) | 5,278,875 | |||||||
Total Investments 73.5% | ||||||||
(Cost $28,197,618) | $ | 26,710,665 | ||||||
Other Assets in Excess of Liabilities – 26.5% | $ | 9,637,199 | ||||||
Net Assets – 100.0% | $ | 36,347,864 | ||||||
Unrealized | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Market Value of Contracts $50,590,350) | 1,159 | $ | 777,950 | |||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
Goldman Sachs International January 2009 Dow Jones Industrial Average Index Swap, Terminating 01/08/09* (Notional Market Value $1,009,269) | 115 | $ | (17,276 | ) | ||||
* | Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 101 |
SCHEDULE OF INVESTMENTS
December 31, 2008
INVERSE DOW 2X STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 25.6% | ||||||||
Federal Home Loan Bank* 0.20% due 01/06/09 | $ | 2,000,000 | $ | 1,999,956 | ||||
Farmer Mac* 0.07% due 01/07/09 | 500,000 | 499,995 | ||||||
Freddie Mac†† 0.05% due 01/29/09 | 500,000 | 499,981 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $2,999,932) | 2,999,932 | |||||||
REPURCHASE AGREEMENTS† 49.1% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 1,471,701 | 1,471,701 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,471,701 | 1,471,701 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 1,471,701 | 1,471,701 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,328,319 | 1,328,319 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $5,743,422) | 5,743,422 | |||||||
Total Investments 74.7% | ||||||||
(Cost $8,743,354) | $ | 8,743,354 | ||||||
Other Assets in Excess of Liabilities – 25.3% | $ | 2,960,049 | ||||||
Net Assets – 100.0% | $ | 11,703,403 | ||||||
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Market Value of Contracts $21,912,300) | 502 | $ | (276,182 | ) | ||||
UNITS | ||||||||
EQUITY INDEX SWAP AGREEMENT | ||||||||
SOLD SHORT | ||||||||
Goldman Sachs International January 2009 Dow Jones Industrial Average Index Swap, Terminating 01/08/09** (Notional Market Value $1,009,269) | 115 | $ | 17,210 | |||||
* | 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 Dow Jones Industrial Average Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 5. | |
†† | On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. |
102 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
SMALL-CAP VALUE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 100.3% | ||||||||
CONSUMER DISCRETIONARY 40.0% | ||||||||
Brunswick Corp. | 49,265 | $ | 207,406 | |||||
Standard Motor Products, Inc. | 59,086 | 204,438 | ||||||
OfficeMax Inc. | 25,646 | 195,935 | ||||||
Sonic Automotive, Inc. | 47,621 | 189,532 | ||||||
Lithia Motors, Inc. — Class A | 56,361 | 183,737 | ||||||
AH Belo Corp. — Class A | 80,817 | 176,181 | ||||||
Oxford Industries, Inc. | 19,228 | 168,630 | ||||||
Champion Enterprises, Inc.* | 284,782 | 159,478 | ||||||
EW Scripps Co. — Class A | 71,176 | 157,299 | ||||||
O’Charleys, Inc. | 75,144 | 150,288 | ||||||
Ruby Tuesday, Inc.* | 95,180 | 148,481 | ||||||
Group 1 Automotive, Inc. | 12,823 | 138,104 | ||||||
Liz Claiborne, Inc. | 48,910 | 127,166 | ||||||
Stein Mart, Inc.* | 105,724 | 119,468 | ||||||
Bassett Furniture Industries, Inc. | 34,514 | 115,622 | ||||||
Big 5 Sporting Goods Corp. | 21,964 | 114,432 | ||||||
MarineMax, Inc.* | 33,532 | 113,673 | ||||||
PEP Boys-Manny Moe & Jack | 25,762 | 106,397 | ||||||
Christopher & Banks Corp. | 18,870 | 105,672 | ||||||
Brown Shoe Company, Inc. | 11,805 | 99,988 | ||||||
Tuesday Morning Corp.* | 60,628 | 98,824 | ||||||
Stage Stores, Inc. | 10,520 | 86,790 | ||||||
Quiksilver, Inc.* | 46,020 | 84,677 | ||||||
Live Nation, Inc.* | 14,742 | 84,619 | ||||||
Perry Ellis International, Inc.* | 12,926 | 81,951 | ||||||
Standard-Pacific Corp.* | 43,787 | 77,941 | ||||||
Spartan Motors, Inc. | 14,710 | 69,578 | ||||||
Ethan Allen Interiors, Inc. | 4,747 | 68,214 | ||||||
Zale Corp.* | 16,985 | 56,560 | ||||||
La-Z-Boy, Inc. | 26,002 | 56,424 | ||||||
Russ Berrie & Company, Inc.* | 18,870 | 56,044 | ||||||
Arctic Cat, Inc. | 11,633 | 55,722 | ||||||
DineEquity, Inc. | 4,470 | 51,673 | ||||||
Tween Brands, Inc.* | 11,640 | 50,285 | ||||||
Superior Industries International, Inc. | 4,715 | 49,602 | ||||||
Hillenbrand, Inc. | 2,320 | 38,698 | ||||||
National Presto Industries, Inc. | 499 | 38,423 | ||||||
Men’s Wearhouse, Inc. | 2,460 | 33,308 | ||||||
Total Consumer Discretionary | 4,121,260 | |||||||
FINANCIALS 32.6% | ||||||||
BankAtlantic Bancorp, Inc. — Class A | 36,090 | 209,322 | ||||||
Guaranty Financial Group, Inc.* | 64,681 | 168,817 | ||||||
Sterling Savings Bank | 19,024 | 167,411 | ||||||
National Financial Partners Corp. | 50,396 | 153,204 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Stewart Information | ||||||||
Services Corp. | 6,307 | $ | 148,151 | |||||
Corus Bankshares, Inc. | 132,235 | 146,781 | ||||||
Flagstar Bancorp, Inc.* | 205,484 | 145,894 | ||||||
Pennsylvania Real Estate Investment Trust | 19,233 | 143,286 | ||||||
Colonial Properties Trust | 15,531 | 129,373 | ||||||
Frontier Financial Corp. | 28,865 | 125,851 | ||||||
Anchor BanCorp | ||||||||
Wisconsin, Inc. | 34,561 | 95,388 | ||||||
Kite Realty Group Trust | 17,032 | 94,698 | ||||||
Cedar Shopping Centers, Inc. | 12,700 | 89,916 | ||||||
DiamondRock Hospitality Co. | 17,439 | 88,416 | ||||||
Parkway Properties, Inc. | 4,420 | 79,560 | ||||||
BioMed Realty Trust, Inc. | 6,553 | 76,801 | ||||||
Lexington Realty Trust | 14,905 | 74,525 | ||||||
Irwin Financial Corp.* | 56,269 | 72,587 | ||||||
Independent Bank Corp. | 29,427 | 63,562 | ||||||
National Retail Properties, Inc. | 3,650 | 62,743 | ||||||
Susquehanna Bancshares, Inc. | 3,913 | 62,256 | ||||||
Post Properties, Inc. | 3,690 | 60,885 | ||||||
Senior Housing Properties Trust | 3,390 | 60,749 | ||||||
South Financial Group, Inc. | 13,727 | 59,301 | ||||||
Extra Space Storage, Inc. | 5,170 | 53,354 | ||||||
Sovran Self Storage, Inc. | 1,455 | 52,380 | ||||||
Whitney Holding Corp. | 3,275 | 52,367 | ||||||
Entertainment Properties Trust | 1,753 | 52,239 | ||||||
Umpqua Holding Corp. | 3,389 | 49,039 | ||||||
LTC Properties, Inc. | 2,352 | 47,699 | ||||||
Kilroy Realty Corp. | 1,380 | 46,175 | ||||||
Inland Real Estate Corp. | 3,261 | 42,328 | ||||||
Home Properties, Inc. | 1,038 | 42,143 | ||||||
Provident Bankshares Corp. | 4,336 | 41,886 | ||||||
First Midwest Bancorp, Inc. | 1,975 | 39,441 | ||||||
Presidential Life Corp. | 3,859 | 38,166 | ||||||
Delphi Financial Group, Inc. — Class A | 1,960 | 36,142 | ||||||
Franklin Street Properties Corp., Inc. | 2,430 | 35,843 | ||||||
Brookline Bancorp, Inc. | 3,111 | 33,132 | ||||||
Eastgroup Properties, Inc. | 880 | 31,310 | ||||||
Mid-America Apartment Communities, Inc. | 838 | 31,140 | ||||||
Urstadt Biddle Properties, Inc. | 1,806 | 28,770 | ||||||
Acadia Realty Trust | 1,720 | 24,544 | ||||||
Total Financials | 3,357,575 | |||||||
INFORMATION TECHNOLOGY 12.0% | ||||||||
Insight Enterprises, Inc.* | 26,093 | 180,042 | ||||||
Technitrol, Inc. | 47,710 | 166,031 | ||||||
SYNNEX Corp.* | 12,664 | 143,483 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 103 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
SMALL-CAP VALUE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Keithley Instruments, Inc. | 37,365 | $ | 136,382 | |||||
Gevity HR, Inc. | 82,201 | 124,124 | ||||||
Agilysys, Inc. | 18,463 | 79,206 | ||||||
Gerber Scientific, Inc.* | 15,046 | 76,885 | ||||||
Brightpoint, Inc.* | 17,530 | 76,255 | ||||||
Startek, Inc.* | 15,951 | 70,982 | ||||||
Axcelis Technologies, Inc.* | 115,470 | 58,890 | ||||||
Cypress Semiconductor Corp.* | 8,380 | 37,459 | ||||||
Hutchinson Technology, Inc.* | 10,630 | 36,992 | ||||||
Rudolph Technologies, Inc.* | 9,676 | 34,156 | ||||||
CTS Corp. | 3,878 | 21,368 | ||||||
Total Information Technology | 1,242,255 | |||||||
INDUSTRIALS 8.4% | ||||||||
Spherion Corp.* | 58,118 | 128,441 | ||||||
Bowne & Co., Inc. | 21,136 | 124,280 | ||||||
Volt Information Sciences, Inc.* | 11,392 | 82,364 | ||||||
Wabash National Corp. | 16,325 | 73,463 | ||||||
John Bean Technologies Corp. | 8,990 | 73,448 | ||||||
CDI Corp. | 5,587 | 72,296 | ||||||
Standard Register Co. | 7,654 | 68,350 | ||||||
Briggs & Stratton Corp. | 3,307 | 58,170 | ||||||
Apogee Enterprises, Inc. | 4,620 | 47,863 | ||||||
Consolidated Graphics, Inc.* | 1,750 | 39,620 | ||||||
C&D Technologies, Inc.* | 11,348 | 35,519 | ||||||
Barnes Group, Inc. | 2,210 | 32,045 | ||||||
Baldor Electric Co. | 1,640 | 29,274 | ||||||
Total Industrials | 865,133 | |||||||
MATERIALS 3.6% | ||||||||
Neenah Paper, Inc. | 11,992 | 106,009 | ||||||
Quaker Chemical Corp. | 5,132 | 84,422 | ||||||
PolyOne Corp.* | 16,195 | 51,014 | ||||||
Myers Industries, Inc. | 5,970 | 47,760 | ||||||
A. Schulman, Inc. | 2,783 | 47,311 | ||||||
Buckeye Technologies, Inc.* | 8,830 | 32,141 | ||||||
Total Materials | 368,657 | |||||||
CONSUMER STAPLES 1.6% | ||||||||
Great Atlantic & Pacific Tea Company, Inc* | 15,035 | 94,270 | ||||||
Andersons, Inc. | 3,980 | 65,590 | ||||||
Total Consumer Staples | 159,860 | |||||||
UTILITIES 1.3% | ||||||||
Atmos Energy Corp. | 1,815 | 43,015 | ||||||
Central Vermont Public Service Corp. | 1,413 | 33,714 | ||||||
UIL Holding Corp. | 1,121 | 33,664 | ||||||
CH Energy Group, Inc. | 525 | 26,980 | ||||||
Total Utilities | 137,373 | |||||||
TELECOMMUNICATION SERVICES 0.8% | ||||||||
Fairpoint Communications, Inc. | 25,230 | 82,754 | ||||||
Total Telecommunication Services | 82,754 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
Total Common Stocks | ||||||||
(Cost $10,101,697) | $ | 10,334,867 | ||||||
REPURCHASE AGREEMENT† 2.1% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 220,141 | 220,141 | |||||
Total Repurchase Agreement | ||||||||
(Cost $220,141) | 220,141 | |||||||
Total Investments 102.4% | ||||||||
(Cost $10,321,838) | $ | 10,555,008 | ||||||
Liabilities in Excess of Other Assets – (2.4)% | $ | (244,750 | ) | |||||
Net Assets – 100.0% | $ | 10,310,258 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 5. |
104 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
MID-CAP VALUE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.3% | ||||||||
FINANCIALS 33.0% | ||||||||
Colonial BancGroup, Inc. | 96,128 | $ | 198,985 | |||||
Protective Life Corp. | 11,296 | 162,098 | ||||||
SL Green Realty Corp. | 4,940 | 127,946 | ||||||
Webster Financial Corp. | 7,773 | 107,112 | ||||||
Hospitality Properties Trust | 6,769 | 100,655 | ||||||
Unitrin, Inc. | 5,858 | 93,377 | ||||||
Old Republic International Corp. | 7,434 | 88,613 | ||||||
Duke Realty Corp. | 7,868 | 86,233 | ||||||
Mack-Cali Realty Corp. | 3,489 | 85,480 | ||||||
Apollo Investment Corp. | 9,100 | 84,721 | ||||||
Fidelity National Financial, Inc. — Class A | 4,722 | 83,816 | ||||||
Weingarten Realty Investors | 3,667 | 75,870 | ||||||
Alexandria Real Estate Equities, Inc. | 1,240 | 74,822 | ||||||
Macerich Co. | 4,090 | 74,274 | ||||||
Horace Mann Educators Corp. | 7,936 | 72,932 | ||||||
Liberty Property Trust | 3,170 | 72,371 | ||||||
Camden Property Trust | 2,093 | 65,595 | ||||||
Highwoods Properties, Inc. | 2,316 | 63,366 | ||||||
Regency Centers Corp. | 1,340 | 62,578 | ||||||
Nationwide Health Properties, Inc. | 2,178 | 62,552 | ||||||
Health Care REIT, Inc. | 1,480 | 62,456 | ||||||
Equity One, Inc. | 3,452 | 61,100 | ||||||
Cousins Properties, Inc. | 4,211 | 58,322 | ||||||
Omega Healthcare Investors, Inc. | 3,490 | 55,735 | ||||||
New York Community Bancorp, Inc. | 4,605 | 55,076 | ||||||
Realty Income Corp. | 2,312 | 53,523 | ||||||
BRE Properties, Inc. — Class A | 1,840 | 51,483 | ||||||
Washington Federal, Inc. | 2,783 | 41,634 | ||||||
Associated Banc-Corp. | 1,969 | 41,211 | ||||||
PacWest Bancorp | 1,505 | 40,485 | ||||||
First American Corp. | 1,329 | 38,395 | ||||||
UDR, Inc. | 2,643 | 36,447 | ||||||
Wilmington Trust Corp. | 1,514 | 33,671 | ||||||
Astoria Financial Corp. | 1,975 | 32,548 | ||||||
Total Financials | 2,505,482 | |||||||
CONSUMER DISCRETIONARY 23.3% | ||||||||
ArvinMeritor, Inc. | 73,810 | 210,358 | ||||||
Modine Manufacturing Co. | 34,358 | 167,323 | ||||||
Furniture Brands International, Inc. | 69,891 | 154,459 | ||||||
Belo Corp. — Class A | 89,191 | 139,138 | ||||||
Williams-Sonoma, Inc. | 15,488 | 121,736 | ||||||
Pacific Sunwear of California, Inc.* | 76,278 | 121,282 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Foot Locker, Inc. | 15,738 | $ | 115,517 | |||||
Barnes & Noble, Inc. | 6,841 | 102,615 | ||||||
Brinker International, Inc. | 9,340 | 98,444 | ||||||
Brink’s Home Security Holdings, Inc.* | 4,390 | 96,229 | ||||||
AnnTaylor Stores Corp.* | 14,790 | 85,338 | ||||||
Blyth, Inc. | 10,600 | 83,104 | ||||||
Boyd Gaming Corp. | 14,987 | 70,888 | ||||||
Regis Corp. | 4,486 | 65,182 | ||||||
Harte-Hanks, Inc. | 9,500 | 59,280 | ||||||
American Greetings Corp. — Class A | 5,480 | 41,484 | ||||||
Bob Evans Farms, Inc. | 1,788 | 36,529 | ||||||
Total Consumer Discretionary | 1,768,906 | |||||||
MATERIALS 12.5% | ||||||||
Temple-Inland, Inc. | 42,620 | 204,576 | ||||||
Ashland, Inc. | 15,681 | 164,808 | ||||||
Ferro Corp. | 18,145 | 127,922 | ||||||
Chemtura Corp. | 75,840 | 106,176 | ||||||
Louisiana-Pacific Corp. | 55,788 | 87,029 | ||||||
RPM International, Inc. | 4,793 | 63,699 | ||||||
Packaging Corporation of America | 4,670 | 62,858 | ||||||
Cabot Corp. | 3,343 | 51,148 | ||||||
Cytec Industries, Inc. | 2,000 | 42,440 | ||||||
Worthington Industries, Inc. | 3,813 | 42,019 | ||||||
Total Materials | 952,675 | |||||||
INDUSTRIALS 10.5% | ||||||||
Oshkosh Corp. | 22,300 | 198,247 | ||||||
Kelly Services, Inc. — Class A | 10,646 | 138,505 | ||||||
HNI Corp. | 5,410 | 85,694 | ||||||
Timken Co. | 4,079 | 80,071 | ||||||
Deluxe Corp. | 4,620 | 69,115 | ||||||
YRC Worldwide, Inc.* | 18,074 | 51,872 | ||||||
Manpower, Inc. | 1,421 | 48,300 | ||||||
Crane Co. | 2,800 | 48,272 | ||||||
Alexander & Baldwin, Inc. | 1,590 | 39,845 | ||||||
Federal Signal Corp. | 4,431 | 36,379 | ||||||
Total Industrials | 796,300 | |||||||
INFORMATION TECHNOLOGY 6.7% | ||||||||
Tech Data Corp.* | 5,649 | 100,778 | ||||||
Ingram Micro, Inc. — Class A* | 7,474 | 100,077 | ||||||
Imation Corp. | 4,661 | 63,250 | ||||||
Intersil Corp. — Class A | 6,180 | 56,794 | ||||||
Vishay Intertechnology, Inc.* | 16,556 | 56,621 | ||||||
Arrow Electronics, Inc.* | 2,951 | 55,597 | ||||||
Avnet, Inc.* | 2,380 | 43,340 | ||||||
RF Micro Devices, Inc.* | 43,130 | 33,641 | ||||||
Total Information Technology | 510,098 | |||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 105 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
MID-CAP VALUE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
UTILITIES 5.6% | ||||||||
Great Plains Energy, Inc. | 3,998 | $ | 77,281 | |||||
PNM Resources, Inc. | 6,771 | 68,252 | ||||||
Oneok, Inc. | 2,146 | 62,491 | ||||||
Westar Energy, Inc. | 2,386 | 48,937 | ||||||
Black Hills Corp. | 1,618 | 43,621 | ||||||
NV Energy, Inc. | 4,152 | 41,063 | ||||||
AGL Resources, Inc. | 1,294 | 40,567 | ||||||
OGE Energy Corp. | 1,533 | 39,521 | ||||||
Total Utilities | 421,733 | |||||||
HEALTH CARE 2.8% | ||||||||
Health Net, Inc.* | 7,350 | 80,042 | ||||||
Kindred Healthcare, Inc.* | 5,602 | 72,938 | ||||||
WellCare Health Plans, Inc.* | 4,720 | 60,699 | ||||||
Total Health Care | 213,679 | |||||||
CONSUMER STAPLES 2.4% | ||||||||
Smithfield Foods, Inc.* | 9,379 | 131,963 | ||||||
Universal Corp. | 1,681 | 50,211 | ||||||
Total Consumer Staples | 182,174 | |||||||
ENERGY 0.5% | ||||||||
Southern Union Co. | 3,072 | 40,059 | ||||||
Total Energy | 40,059 | |||||||
Total Common Stocks | ||||||||
(Cost $8,190,132) | 7,391,106 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.9% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 146,417 | 146,417 | |||||
Total Repurchase Agreement | ||||||||
(Cost $146,417) | 146,417 | |||||||
Total Investments 99.2% | ||||||||
(Cost $8,336,549) | $ | 7,537,523 | ||||||
Other Assets in Excess of Liabilities – 0.8% | $ | 57,514 | ||||||
Net Assets – 100.0% | $ | 7,595,037 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 5. | |
REIT — Real Estate Investment Trust. |
106 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
LARGE-CAP VALUE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.2% | ||||||||
FINANCIALS 37.1% | ||||||||
ProLogis | 24,140 | $ | 335,309 | |||||
CIT Group, Inc. | 48,173 | 218,705 | ||||||
Hartford Financial Services Group, Inc. | 13,064 | 214,511 | ||||||
XL Capital Ltd. | 55,757 | 206,301 | ||||||
American Capital Ltd. | 59,624 | 193,182 | ||||||
American International Group, Inc. | 121,430 | 190,645 | ||||||
Genworth Financial, Inc. — Class A | 61,694 | 174,594 | ||||||
Lincoln National Corp. | 6,839 | 128,847 | ||||||
Host Hotels & Resorts, Inc. | 16,063 | 121,597 | ||||||
Morgan Stanley | 6,927 | 111,109 | ||||||
Citigroup, Inc. | 15,146 | 101,630 | ||||||
Bank of America Corp. | 6,156 | 86,677 | ||||||
Comerica, Inc. | 4,306 | 85,474 | ||||||
Fifth Third Bancorp | 9,990 | 82,517 | ||||||
Allstate Corp. | 2,469 | 80,884 | ||||||
SunTrust Banks, Inc. | 2,627 | 77,602 | ||||||
Marshall & Ilsley Corp. | 5,548 | 75,675 | ||||||
Huntington Bancshares, Inc. | 9,181 | 70,326 | ||||||
Legg Mason, Inc. | 3,150 | 69,017 | ||||||
HCP, Inc. | 2,185 | 60,677 | ||||||
Apartment Investment & Management Co. — Class A | 5,228 | 60,383 | ||||||
Prudential Financial, Inc. | 1,940 | 58,704 | ||||||
Regions Financial Corp. | 7,280 | 57,949 | ||||||
KIMCO Realty Corp. | 3,130 | 57,216 | ||||||
Vornado Realty Trust | 890 | 53,712 | ||||||
Boston Properties, Inc. | 890 | 48,950 | ||||||
Principal Financial Group, Inc. | 2,160 | 48,751 | ||||||
Capital One Financial Corp. | 1,490 | 47,516 | ||||||
KeyCorp | 5,054 | 43,060 | ||||||
Simon Property Group, Inc. | 810 | 43,035 | ||||||
Ameriprise Financial, Inc. | 1,770 | 41,347 | ||||||
BB&T Corp. | 1,422 | 39,048 | ||||||
Cincinnati Financial Corp. | 1,321 | 38,402 | ||||||
Equity Residential | 1,270 | 37,871 | ||||||
Assurant, Inc. | 1,180 | 35,400 | ||||||
JPMorgan Chase & Co. | 1,084 | 34,179 | ||||||
U.S. Bancorp | 1,240 | 31,012 | ||||||
Zions Bancorporation | 1,145 | 28,064 | ||||||
AvalonBay Communities, Inc. | 460 | 27,867 | ||||||
Total Financials | 3,517,745 | |||||||
CONSUMER DISCRETIONARY 20.7% | ||||||||
Office Depot, Inc.* | 64,520 | 192,270 | ||||||
Gannett Company, Inc. | 21,390 | 171,120 | ||||||
Macy’s, Inc. | 15,909 | 164,658 |
MARKET | ||||||||
SHARES | VALUE | |||||||
CBS Corp. | 19,542 | $ | 160,049 | |||||
Jones Apparel Group, Inc. | 27,230 | 159,568 | ||||||
Wyndham Worldwide Corp. | 17,220 | 112,791 | ||||||
Eastman Kodak Co. | 14,308 | 94,147 | ||||||
Goodyear Tire & Rubber Co.* | 14,890 | 88,893 | ||||||
Ford Motor Co.* | 33,554 | 76,839 | ||||||
Whirlpool Corp. | 1,784 | 73,769 | ||||||
Limited Brands, Inc. | 7,060 | 70,882 | ||||||
Carnival Corp. | 2,637 | 64,132 | ||||||
International Game Technology, Inc. | 5,260 | 62,541 | ||||||
J.C. Penney Company, Inc. | 3,068 | 60,440 | ||||||
AutoNation, Inc.* | 5,581 | 55,140 | ||||||
Leggett & Platt, Inc. | 3,506 | 53,256 | ||||||
Meredith Corp. | 2,910 | 49,819 | ||||||
Newell Rubbermaid, Inc. | 4,810 | 47,042 | ||||||
Johnson Controls, Inc. | 2,320 | 42,131 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 2,300 | 41,170 | ||||||
Time Warner, Inc. | 3,612 | 36,337 | ||||||
Mattel, Inc. | 1,910 | 30,560 | ||||||
Fortune Brands, Inc. | 730 | 30,134 | ||||||
Darden Restaurants, Inc. | 1,040 | 29,307 | ||||||
Total Consumer Discretionary | 1,966,995 | |||||||
UTILITIES 8.4% | ||||||||
Constellation Energy Group, Inc. | 3,960 | 99,356 | ||||||
NiSource, Inc. | 7,592 | 83,284 | ||||||
Pinnacle West Capital Corp. | 2,084 | 66,959 | ||||||
Pepco Holdings, Inc. | 3,460 | 61,450 | ||||||
Ameren Corp. | 1,769 | 58,837 | ||||||
Integrys Energy Group, Inc. | 1,324 | 56,905 | ||||||
DTE Energy Co. | 1,407 | 50,188 | ||||||
TECO Energy, Inc. | 4,005 | 49,462 | ||||||
CenterPoint Energy, Inc. | 3,454 | 43,589 | ||||||
Progress Energy, Inc. | 1,088 | 43,357 | ||||||
Duke Energy Corp. | 2,885 | 43,304 | ||||||
Consolidated Edison, Inc. | 994 | 38,696 | ||||||
American Electric Power Company, Inc. | 1,071 | 35,643 | ||||||
Xcel Energy, Inc. | 1,663 | 30,849 | ||||||
SCANA Corp. | 840 | 29,904 | ||||||
Total Utilities | 791,783 | |||||||
MATERIALS 7.2% | ||||||||
Alcoa, Inc. | 9,570 | 107,758 | ||||||
International Paper Co. | 8,642 | 101,975 | ||||||
MeadWestvaco Corp. | 8,835 | 98,864 | ||||||
AK Steel Holding Corp. | 7,480 | 69,714 | ||||||
United States Steel Corp. | 1,720 | 63,984 | ||||||
Dow Chemical Co. | 4,011 | 60,526 | ||||||
Eastman Chemical Co. | 1,570 | 49,785 | ||||||
Weyerhaeuser Co. | 1,563 | 47,843 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 107 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
LARGE-CAP VALUE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
E.I. du Pont de Nemours and Co. | 1,790 | $ | 45,287 | |||||
Air Products & Chemicals, Inc. | 740 | 37,200 | ||||||
Total Materials | 682,936 | |||||||
CONSUMER STAPLES 5.9% | ||||||||
SUPERVALU, INC. | 15,167 | 221,438 | ||||||
Tyson Foods, Inc. — Class A | 10,370 | 90,841 | ||||||
Philip Morris International, Inc. | 1,400 | 60,914 | ||||||
Altria Group, Inc. | 3,900 | 58,734 | ||||||
Coca-Cola Enterprises, Inc. | 4,140 | 49,804 | ||||||
Reynolds American, Inc. | 1,175 | 47,365 | ||||||
ConAgra Foods, Inc. | 1,850 | 30,525 | ||||||
Total Consumer Staples | 559,621 | |||||||
INDUSTRIALS 5.0% | ||||||||
RR Donnelley & Sons Co. | 6,537 | 88,773 | ||||||
Masco Corp. | 6,647 | 73,981 | ||||||
Textron, Inc. | 4,500 | 62,415 | ||||||
General Electric Co. | 3,290 | 53,298 | ||||||
Ingersoll-Rand Co. — Class A | 3,010 | 52,224 | ||||||
Tyco International Ltd. | 1,700 | 36,720 | ||||||
Avery Dennison Corp. | 1,080 | 35,348 | ||||||
Ryder System, Inc. | 889 | 34,475 | ||||||
Northrop Grumman Corp. | 744 | 33,510 | ||||||
Total Industrials | 470,744 | |||||||
TELECOMMUNICATION SERVICES 4.2% | ||||||||
Qwest Communications International, Inc. | 23,080 | 84,011 | ||||||
CenturyTel, Inc. | 2,750 | 75,157 | ||||||
Embarq Corp. | 1,759 | 63,254 | ||||||
Windstream Corp. | 5,958 | 54,814 | ||||||
Frontier Communications Corp. | 6,072 | 53,069 | ||||||
Verizon Communications, Inc. | 1,028 | 34,849 | ||||||
AT&T, Inc. | 1,173 | 33,431 | ||||||
Total Telecommunication Services | 398,585 | |||||||
ENERGY 3.9% | ||||||||
Tesoro Corp. | 15,460 | 203,608 | ||||||
Valero Energy Corp. | 4,390 | 95,000 | ||||||
Spectra Energy Corp. | 4,584 | 72,152 | ||||||
Total Energy | 370,760 | |||||||
INFORMATION TECHNOLOGY 3.2% | ||||||||
Jabil Circuit, Inc. | 15,970 | 107,797 | ||||||
Tyco Electronics Ltd. | 3,310 | 53,655 | ||||||
Analog Devices, Inc. | 2,240 | 42,605 | ||||||
Microchip Technology, Inc. | 1,980 | 38,669 | ||||||
Sun Microsystems, Inc.* | 8,760 | 33,463 | ||||||
Molex, Inc. | 2,150 | 31,154 | ||||||
Total Information Technology | 307,343 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
HEALTH CARE 2.6% | ||||||||
AmerisourceBergen Corp. | 2,760 | $ | 98,422 | |||||
Tenet Healthcare Corp.* | 58,046 | 66,753 | ||||||
Pfizer, Inc. | 2,605 | 46,134 | ||||||
McKesson Corp. | 868 | 33,618 | ||||||
Total Health Care | 244,927 | |||||||
Total Common Stocks | ||||||||
(Cost $9,140,345) | 9,311,439 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.7% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 158,196 | 158,196 | |||||
Total Repurchase Agreement | ||||||||
(Cost $158,196) | 158,196 | |||||||
Total Investments 99.9% | ||||||||
(Cost $9,298,541) | $ | 9,469,635 | ||||||
Other Assets in Excess of Liabilities – 0.1% | $ | 9,084 | ||||||
Net Assets – 100.0% | $ | 9,478,719 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 5. |
108 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
SMALL-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.1% | ||||||||
INFORMATION TECHNOLOGY 26.2% | ||||||||
Intevac, Inc.* | 30,368 | $ | 153,966 | |||||
Heartland Payment Systems, Inc. | 7,464 | 130,620 | ||||||
j2 Global Communications, Inc.* | 6,505 | 130,360 | ||||||
Hittite Microwave Corp.* | 4,323 | 127,356 | ||||||
InfoSpace, Inc. | 16,668 | 125,843 | ||||||
Quality Systems, Inc. | 2,759 | 120,348 | ||||||
Epicor Software Corp.* | 24,934 | 119,683 | ||||||
Wright Express Corp.* | 9,430 | 118,818 | ||||||
DealerTrack Holdings, Inc.* | 9,475 | 112,658 | ||||||
Pericom Semiconductor Corp.* | 19,850 | 108,778 | ||||||
Perficient, Inc.* | 22,590 | 107,980 | ||||||
The Knot, Inc.* | 12,960 | 107,827 | ||||||
United Online, Inc. | 17,356 | 105,351 | ||||||
Cybersource Corp.* | 8,680 | 104,073 | ||||||
Kulicke & Soffa Industries, Inc.* | 57,610 | 97,937 | ||||||
Smith Micro Software, Inc.* | 17,565 | 97,661 | ||||||
MKS Instruments, Inc.* | 6,490 | 95,987 | ||||||
Bankrate, Inc.* | 2,481 | 94,278 | ||||||
Micrel, Inc. | 12,610 | 92,179 | ||||||
Plexus Corp.* | 5,090 | 86,275 | ||||||
ATMI, Inc.* | 5,410 | 83,476 | ||||||
Netgear, Inc.* | 7,056 | 80,509 | ||||||
Electro Scientific Industries, Inc.* | 11,650 | 79,103 | ||||||
Blackbaud, Inc. | 5,771 | 77,908 | ||||||
Park Electrochemical Corp. | 4,080 | 77,357 | ||||||
Websense, Inc.* | 4,762 | 71,287 | ||||||
Concur Technologies, Inc.* | 2,120 | 69,578 | ||||||
Diodes, Inc.* | 11,307 | 68,520 | ||||||
Comtech Telecommunications Corp.* | 1,489 | 68,226 | ||||||
EPIQ Systems, Inc.* | 3,976 | 66,439 | ||||||
Faro Technologies, Inc.* | 3,901 | 65,771 | ||||||
Daktronics, Inc. | 6,855 | 64,163 | ||||||
TTM Technologies, Inc.* | 12,280 | 63,979 | ||||||
Varian Semiconductor | ||||||||
Equipment Associates, Inc.* | 3,530 | 63,964 | ||||||
Bel Fuse, Inc. — Class B | 2,760 | 58,512 | ||||||
ViaSat, Inc.* | 2,060 | 49,605 | ||||||
Micros Systems, Inc.* | 2,479 | 40,457 | ||||||
CACI International, Inc. — Class A* | 876 | 39,499 | ||||||
Synaptics, Inc.* | 2,280 | 37,757 | ||||||
Stratasys, Inc.* | 3,340 | 35,905 | ||||||
Integral Systems, Inc.* | 2,690 | 32,415 | ||||||
Cymer, Inc.* | 1,450 | 31,770 | ||||||
Tyler Technologies, Inc.* | 2,565 | 30,729 | ||||||
Global Payments, Inc. | 1 | 33 | ||||||
Total Information Technology | 3,594,940 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
CONSUMER DISCRETIONARY 19.6% | ||||||||
NutriSystem, Inc. | 11,299 | $ | 164,852 | |||||
Stamps.com, Inc.* | 16,734 | 164,495 | ||||||
True Religion Apparel, Inc.* | 13,001 | 161,732 | ||||||
CROCS, Inc.* | 114,370 | 141,819 | ||||||
Shuffle Master, Inc.* | 28,254 | 140,140 | ||||||
Ruth’s Hospitality Group, Inc.* | 95,540 | 131,845 | ||||||
PetMed Express, Inc.* | 6,770 | 119,355 | ||||||
Pool Corp. | 5,744 | 103,220 | ||||||
Zumiez, Inc.* | 11,649 | 86,785 | ||||||
Pre-Paid Legal Services, Inc.* | 2,299 | 85,730 | ||||||
Cracker Barrel Old Country Store, Inc. | 4,130 | 85,037 | ||||||
Volcom, Inc.* | 7,093 | 77,314 | ||||||
Panera Bread Co. — Class A* | 1,410 | 73,658 | ||||||
Deckers Outdoor Corp.* | 918 | 73,321 | ||||||
K-Swiss, Inc. — Class A | 6,141 | 70,007 | ||||||
WMS Industries, Inc.* | 2,563 | 68,945 | ||||||
Hibbett Sports Inc.* | 4,111 | 64,584 | ||||||
Meritage Homes Corp.* | 5,151 | 62,688 | ||||||
Jos. A. Bank Clothiers, Inc.* | 2,353 | 61,531 | ||||||
Dress Barn, Inc.* | 5,686 | 61,068 | ||||||
Drew Industries, Inc.* | 4,895 | 58,740 | ||||||
Children’s Place Retail Stores, Inc.* | 2,570 | 55,718 | ||||||
Papa John’s International, Inc.* | 2,976 | 54,848 | ||||||
Maidenform Brands, Inc.* | 5,160 | 52,374 | ||||||
Tractor Supply Co.* | 1,442 | 52,114 | ||||||
Capella Education Co.* | 870 | 51,121 | ||||||
Universal Technical | ||||||||
Institute, Inc.* | 2,875 | 49,364 | ||||||
CEC Entertainment, Inc.* | 1,962 | 47,578 | ||||||
Monarch Casino & Resort, Inc.* | 4,082 | 47,555 | ||||||
Fossil, Inc.* | 2,718 | 45,391 | ||||||
P.F. Chang’s China Bistro, Inc.* | 1,815 | 38,006 | ||||||
Coinstar, Inc.* | 1,909 | 37,244 | ||||||
Gymboree Corp.* | 1,398 | 36,474 | ||||||
HSN, Inc.* | 4,060 | 29,516 | ||||||
Carter’s, Inc.* | 1,370 | 26,386 | ||||||
Total Consumer Discretionary | 2,680,555 | |||||||
HEALTH CARE 15.5% | ||||||||
Palomar Medical | ||||||||
Technologies, Inc.* | 15,267 | 176,029 | ||||||
Viropharma, Inc.* | 12,670 | 164,964 | ||||||
Cubist Pharmaceuticals, Inc.* | 6,610 | 159,698 | ||||||
LCA-Vision, Inc. | 37,047 | 152,263 | ||||||
inVentiv Health, Inc.* | 10,560 | 121,862 | ||||||
Martek Biosciences Corp. | 3,924 | 118,937 | ||||||
Magellan Health Services, Inc.* | 2,890 | 113,172 | ||||||
Catalyst Health Solutions, Inc.* | 3,980 | 96,913 | ||||||
Healthways, Inc.* | 7,919 | 90,910 | ||||||
Chemed Corp. | 2,160 | 85,903 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 109 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
SMALL-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Immucor, Inc.* | 3,185 | $ | 84,657 | |||||
Meridian Bioscience, Inc. | 2,990 | 76,155 | ||||||
LHC Group, Inc.* | 1,906 | 68,616 | ||||||
Integra LifeSciences Holdings Corp.* | 1,660 | 59,046 | ||||||
Dionex Corp.* | 1,280 | 57,408 | ||||||
Natus Medical, Inc.* | 3,980 | 51,541 | ||||||
Abaxis, Inc.* | 3,204 | 51,360 | ||||||
Molina Healthcare, Inc.* | 2,698 | 47,512 | ||||||
ArthroCare Corp.* | 9,810 | 46,794 | ||||||
Amedisys, Inc.* | 1,114 | 46,053 | ||||||
Symmetry Medical, Inc.* | 5,690 | 45,349 | ||||||
Pediatrix Medical Group, Inc.* | 1,316 | 41,717 | ||||||
Air Methods Corp.* | 2,590 | 41,414 | ||||||
ICU Medical, Inc.* | 1,166 | 38,641 | ||||||
Salix Pharmaceuticals Ltd.* | 4,030 | 35,585 | ||||||
AmSurg Corp.* | 1,450 | 33,843 | ||||||
SurModics, Inc.* | 916 | 23,147 | ||||||
Total Health Care | 2,129,489 | |||||||
INDUSTRIALS 11.3% | ||||||||
Ceradyne, Inc.* | 6,473 | 131,467 | ||||||
Viad Corp. | 4,560 | 112,814 | ||||||
Landstar System, Inc. | 2,795 | 107,412 | ||||||
Actuant Corp. — Class A | 5,590 | 106,322 | ||||||
Astec Industries, Inc.* | 2,910 | 91,170 | ||||||
SkyWest, Inc. | 4,390 | 81,654 | ||||||
Mueller Industries, Inc. | 2,860 | 71,729 | ||||||
Toro Co. | 2,153 | 71,049 | ||||||
Geo Group, Inc.* | 3,730 | 67,252 | ||||||
Knight Transportation, Inc. | 3,885 | 62,626 | ||||||
Forward Air Corp. | 2,567 | 62,301 | ||||||
Gardner Denver, Inc.* | 2,470 | 57,650 | ||||||
II-VI, Inc.* | 2,830 | 54,025 | ||||||
Teledyne Technologies, Inc.* | 1,170 | 52,123 | ||||||
Orbital Sciences Corp.* | 2,575 | 50,290 | ||||||
Heartland Express, Inc. | 3,091 | 48,714 | ||||||
Old Dominion Freight Line, Inc.* | 1,690 | 48,097 | ||||||
Curtiss-Wright Corp. | 1,435 | 47,915 | ||||||
SYKES Enterprises, Inc.* | 2,450 | 46,844 | ||||||
Simpson Manufacturing Company, Inc. | 1,654 | 45,915 | ||||||
Axsys Technologies, Inc.* | 830 | 45,534 | ||||||
AAR Corp.* | 2,346 | 43,190 | ||||||
Watson Wyatt & Company Holdings | 780 | 37,299 | ||||||
Total Industrials | 1,543,392 | |||||||
ENERGY 10.2% | ||||||||
Basic Energy Services, Inc.* | 11,984 | 156,271 | ||||||
Petroleum Development Corp.* | 5,454 | 131,278 | ||||||
St. Mary Land & Exploration Co. | 5,921 | 120,256 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Hornbeck Offshore | ||||||||
Services, Inc.* | 6,470 | $ | 105,720 | |||||
Superior Well Services, Inc.* | 9,760 | 97,600 | ||||||
Swift Energy Co.* | 5,320 | 89,429 | ||||||
Oil States International, Inc.* | 4,590 | 85,787 | ||||||
Penn Virginia Corp. | 3,259 | 84,669 | ||||||
ION Geophysical Corp.* | 21,210 | 72,750 | ||||||
Petroquest Energy, Inc.* | 10,430 | 70,507 | ||||||
Tetra Technologies, Inc.* | 13,750 | 66,825 | ||||||
SEACOR Holdings, Inc.* | 840 | 55,986 | ||||||
NATCO Group, Inc.* | 3,630 | 55,103 | ||||||
CARBO Ceramics, Inc. | 1,516 | 53,864 | ||||||
Dril-Quip, Inc.* | 2,590 | 53,121 | ||||||
Lufkin Industries, Inc. | 1,520 | 52,440 | ||||||
Pioneer Drilling Co.* | 9,190 | 51,188 | ||||||
Total Energy | 1,402,794 | |||||||
FINANCIALS 8.8% | ||||||||
TradeStation Group, Inc.* | 25,821 | 166,545 | ||||||
Greenhill & Company, Inc. | 2,062 | 143,866 | ||||||
optionsXpress Holdings, Inc. | 8,733 | 116,673 | ||||||
Wilshire Bancorp, Inc. | 12,274 | 111,448 | ||||||
Portfolio Recovery Associates, Inc.* | 2,394 | 81,013 | ||||||
East-West Bancorp, Inc. | 4,480 | 71,546 | ||||||
American Physicians Capital, Inc. | 1,460 | 70,226 | ||||||
Nara Bancorp, Inc. | 6,578 | 64,662 | ||||||
Amerisafe, Inc.* | 3,120 | 64,054 | ||||||
Cascade Bancorp. | 9,350 | 63,112 | ||||||
Signature Bank* | 2,070 | 59,388 | ||||||
World Acceptance Corp.* | 2,949 | 58,272 | ||||||
PrivateBancorp, Inc. | 1,775 | 57,616 | ||||||
First Cash Financial Services, Inc.* | 2,450 | 46,697 | ||||||
Stifel Financial Corp.* | 690 | 31,637 | ||||||
Total Financials | 1,206,755 | |||||||
CONSUMER STAPLES 3.4% | ||||||||
Mannatech, Inc. | 48,666 | 119,232 | ||||||
Darling International, Inc.* | 13,920 | 76,421 | ||||||
Green Mountain Coffee Roasters, Inc.* | 1,740 | 67,338 | ||||||
Spartan Stores, Inc. | 2,550 | 59,287 | ||||||
Diamond Foods, Inc. | 2,730 | 55,010 | ||||||
Chattem, Inc.* | 710 | 50,786 | ||||||
Boston Beer Company, Inc. — Class A* | 1,335 | 37,914 | ||||||
Total Consumer Staples | 465,988 | |||||||
MATERIALS 3.1% | ||||||||
A.M. Castle & Co. | 11,080 | 119,996 | ||||||
Eagle Materials, Inc. | 5,130 | 94,443 | ||||||
Brush Engineered Materials, Inc.* | 6,990 | 88,913 |
110 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
SMALL-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Headwaters, Inc.* | 8,621 | $ | 58,192 | |||||
Balchem Corp. | 1,525 | 37,988 | ||||||
Deltic Timber Corp. | 640 | 29,280 | ||||||
Total Materials | 428,812 | |||||||
Total Common Stocks | ||||||||
(Cost $12,280,587) | 13,452,725 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.8% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 256,482 | 256,482 | |||||
Total Repurchase Agreement | ||||||||
(Cost $256,482) | 256,482 | |||||||
Total Investments 99.9% | ||||||||
(Cost $12,537,069) | $ | 13,709,207 | ||||||
Other Assets in Excess of Liabilities – 0.1% | $ | 8,268 | ||||||
Net Assets – 100.0% | $ | 13,717,475 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 111 |
SCHEDULE OF INVESTMENTS
December 31, 2008
MID-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.5% | ||||||||
CONSUMER DISCRETIONARY 23.4% | ||||||||
Sotheby’s | 23,825 | $ | 211,804 | |||||
J. Crew Group, Inc.* | 16,710 | 203,862 | ||||||
Aeropostale, Inc.* | 9,582 | 154,270 | ||||||
NVR, Inc.* | 333 | 151,931 | ||||||
ITT Educational Services, Inc.* | 1,366 | 129,743 | ||||||
Under Armour, Inc.* | 5,335 | 127,186 | ||||||
Chico’s FAS, Inc.* | 28,553 | 119,352 | ||||||
Guess?, Inc. | 7,352 | 112,853 | ||||||
Urban Outfitters, Inc.* | 7,356 | 110,193 | ||||||
Netflix, Inc.* | 3,540 | 105,811 | ||||||
Marvel Entertainment, Inc.* | 3,280 | 100,860 | ||||||
Chipotle Mexican Grill, Inc. — Class A* | 1,625 | 100,718 | ||||||
Strayer Education, Inc. | 463 | 99,272 | ||||||
Toll Brothers, Inc.* | 4,309 | 92,342 | ||||||
Ross Stores, Inc. | 3,084 | 91,687 | ||||||
Lamar Advertising Co. — Class A* | 6,950 | 87,292 | ||||||
The Warnaco Group, Inc.* | 3,976 | 78,049 | ||||||
DreamWorks Animation SKG, | ||||||||
Inc. — Class A* | 3,065 | 77,422 | ||||||
Thor Industries, Inc. | 5,510 | 72,622 | ||||||
Advance Auto Parts, Inc. | 2,080 | 69,992 | ||||||
John Wiley & Sons, Inc. — Class A | 1,957 | 69,630 | ||||||
Career Education Corp.* | 3,860 | 69,248 | ||||||
Dick’s Sporting Goods, Inc.* | 4,820 | 68,010 | ||||||
Timberland Co. — Class A* | 5,347 | 61,758 | ||||||
Hovnanian Enterprises, Inc. — Class A* | 32,226 | 55,429 | ||||||
Dollar Tree, Inc.* | 1,318 | 55,092 | ||||||
priceline.com, Inc.* | 748 | 55,090 | ||||||
Total Consumer Discretionary | 2,731,518 | |||||||
INDUSTRIALS 18.7% | ||||||||
Joy Global, Inc. | 7,430 | 170,073 | ||||||
Corporate Executive Board Co. | 7,058 | 155,699 | ||||||
Trinity Industries, Inc. | 9,430 | 148,617 | ||||||
Clean Harbors, Inc.* | 2,000 | 126,880 | ||||||
Herman Miller, Inc. | 9,650 | 125,739 | ||||||
Con-way’, Inc. | 4,400 | 117,040 | ||||||
Graco, Inc. | 4,926 | 116,894 | ||||||
Thomas & Betts Corp.* | 4,770 | 114,575 | ||||||
Terex Corp.* | 6,322 | 109,497 | ||||||
J.B. Hunt Transport Services, Inc. | 3,900 | 102,453 | ||||||
Alliant Techsystems, Inc.* | 1,179 | 101,111 | ||||||
MSC Industrial Direct Co. — Class A | 2,530 | 93,180 | ||||||
Bucyrus International, Inc. — Class A | 4,930 | 91,304 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Alaska Air Group, Inc.* | 2,860 | $ | 83,655 | |||||
Rollins, Inc. | 4,308 | 77,889 | ||||||
Donaldson Company, Inc. | 2,170 | 73,020 | ||||||
Korn/Ferry International, Inc.* | 6,138 | 70,096 | ||||||
Lincoln Electric Holdings, Inc. | 1,320 | 67,228 | ||||||
Navigant Consulting, Inc.* | 3,793 | 60,195 | ||||||
AMETEK, Inc. | 1,650 | 49,846 | ||||||
FTI Consulting, Inc.* | 1,100 | 49,148 | ||||||
Roper Industries, Inc. | 1,070 | 46,449 | ||||||
Copart, Inc.* | 1,554 | 42,253 | ||||||
Total Industrials | 2,192,841 | |||||||
INFORMATION TECHNOLOGY 16.9% | ||||||||
CommScope, Inc.* | 11,950 | 185,703 | ||||||
Lam Research Corp.* | 8,070 | 171,730 | ||||||
NeuStar, Inc.* | 6,740 | 128,936 | ||||||
DST Systems, Inc.* | 3,263 | 123,929 | ||||||
Digital River, Inc.* | 4,994 | 123,851 | ||||||
Western Digital Corp.* | 10,381 | 118,862 | ||||||
FactSet Research Systems Inc. | 2,650 | 117,236 | ||||||
ValueClick, Inc.* | 14,678 | 100,398 | ||||||
Synopsys, Inc.* | 5,180 | 95,934 | ||||||
Silicon Laboratories, Inc.* | 3,839 | 95,130 | ||||||
F5 Networks, Inc.* | 3,910 | 89,383 | ||||||
Parametric Technology Corp.* | 6,390 | 80,834 | ||||||
Plantronics, Inc. | 5,801 | 76,573 | ||||||
Alliance Data Systems Corp.* | 1,488 | 69,237 | ||||||
Global Payments, Inc. | 1,755 | 57,546 | ||||||
ANSYS, Inc.* | 2,051 | 57,202 | ||||||
Metavante Technologies, Inc.* | 3,540 | 57,029 | ||||||
Cree, Inc.* | 3,375 | 53,561 | ||||||
ACI Worldwide, Inc.* | 3,184 | 50,626 | ||||||
Gartner, Inc. — Class A* | 2,599 | 46,340 | ||||||
Trimble Navigation Ltd.* | 2,007 | 43,371 | ||||||
Mettler-Toledo International, Inc.* | 470 | 31,678 | ||||||
Total Information Technology | 1,975,089 | |||||||
ENERGY 11.5% | ||||||||
Frontier Oil Corp. | 12,998 | 164,165 | ||||||
Patterson-UTI Energy, Inc. | 14,160 | 162,982 | ||||||
Helix Energy Solutions Group, Inc.* | 22,032 | 159,512 | ||||||
Unit Corp.* | 5,649 | 150,941 | ||||||
Helmerich & Payne, Inc. | 5,500 | 125,125 | ||||||
Encore Acquisition Co.* | 4,583 | 116,958 | ||||||
Quicksilver Resources, Inc.* | 17,032 | 94,868 | ||||||
Denbury Resources, Inc.* | 8,433 | 92,088 | ||||||
FMC Technologies, Inc.* | 3,504 | 83,500 | ||||||
Superior Energy Services* | 5,150 | 82,039 | ||||||
Oceaneering International, Inc.* | 2,220 | 64,691 | ||||||
Comstock Resources, Inc.* | 990 | 46,778 | ||||||
Total Energy | 1,343,647 | |||||||
112 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
MID-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
HEALTH CARE 11.4% | ||||||||
Sepracor, Inc.* | 19,590 | $ | 215,098 | |||||
United Therapeutics Corp.* | 3,355 | 209,855 | ||||||
Kinetic Concepts, Inc.* | 7,361 | 141,184 | ||||||
VCA Antech, Inc.* | 5,450 | 108,346 | ||||||
Endo Pharmaceuticals Holdings, Inc.* | 3,450 | 89,286 | ||||||
Hologic, Inc.* | 6,650 | 86,916 | ||||||
Lincare Holdings, Inc.* | 2,916 | 78,528 | ||||||
IDEXX Laboratories, Inc.* | 2,140 | 77,211 | ||||||
Techne Corp. | 1,102 | 71,101 | ||||||
Pharmaceutical Product Development, Inc. | 2,322 | 67,361 | ||||||
ResMed, Inc.* | 1,751 | 65,627 | ||||||
Gen-Probe, Inc.* | 1,518 | 65,031 | ||||||
Cerner Corp.* | 1,437 | 55,253 | ||||||
Total Health Care | 1,330,797 | |||||||
FINANCIALS 7.2% | ||||||||
Affiliated Managers Group, Inc.* | 3,079 | 129,072 | ||||||
Eaton Vance Corp. | 6,134 | 128,875 | ||||||
SEI Investments Co. | 7,286 | 114,463 | ||||||
Jones Lang LaSalle, Inc. | 3,474 | 96,230 | ||||||
HCC Insurance Holdings, Inc. | 3,460 | 92,555 | ||||||
W.R. Berkley Corp. | 2,979 | 92,349 | ||||||
Brown & Brown, Inc. | 3,670 | 76,703 | ||||||
Hanover Insurance Group, Inc. | 1,370 | 58,869 | ||||||
SVB Financial Group* | 2,070 | 54,296 | ||||||
Total Financials | 843,412 | |||||||
MATERIALS 4.7% | ||||||||
Cliffs Natural Resources, Inc. | 6,839 | 175,147 | ||||||
Steel Dynamics, Inc. | 14,122 | 157,884 | ||||||
FMC Corp. | 2,600 | 116,298 | ||||||
Reliance Steel & Aluminum Co. | 5,220 | 104,087 | ||||||
Total Materials | 553,416 | |||||||
CONSUMER STAPLES 3.7% | ||||||||
Hansen Natural Corp.* | 6,254 | 209,697 | ||||||
Energizer Holdings, Inc.* | 3,129 | 169,404 | ||||||
Church & Dwight Company, Inc. | 941 | 52,809 | ||||||
Total Consumer Staples | 431,910 | |||||||
Total Common Stocks | ||||||||
(Cost $11,325,035) | 11,402,630 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 1.9% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 219,753 | $ | 219,753 | ||||
Total Repurchase Agreement | ||||||||
(Cost $219,753) | 219,753 | |||||||
Total Investments 99.4% | ||||||||
(Cost $11,544,788) | $ | 11,622,383 | ||||||
Other Assets in Excess of Liabilities – 0.6% | $ | 72,338 | ||||||
Net Assets – 100.0% | $ | 11,694,721 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 113 |
SCHEDULE OF INVESTMENTS
December 31, 2008
LARGE-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.2% | ||||||||
INFORMATION TECHNOLOGY 27.4% | ||||||||
Agilent Technologies, Inc.* | 10,580 | $ | 165,365 | |||||
Google, Inc. — Class A* | 482 | 148,287 | ||||||
Cognizant Technology Solutions Corp. — Class A* | 8,009 | 144,643 | ||||||
Akamai Technologies, Inc.* | 9,553 | 144,155 | ||||||
Salesforce.com, Inc.* | 4,477 | 143,309 | ||||||
MasterCard, Inc. | 999 | 142,787 | ||||||
BMC Software, Inc.* | 5,050 | 135,895 | ||||||
Motorola, Inc. | 29,092 | 128,878 | ||||||
Autodesk, Inc.* | 6,123 | 120,317 | ||||||
SanDisk Corp.* | 12,440 | 119,424 | ||||||
Amphenol Corp. | 4,956 | 118,845 | ||||||
Apple, Inc.* | 1,315 | 112,235 | ||||||
Microsoft Corp. | 5,495 | 106,823 | ||||||
Dell, Inc.* | 10,176 | 104,202 | ||||||
National Semiconductor Corp. | 10,165 | 102,362 | ||||||
Western Union Co. | 7,122 | 102,129 | ||||||
Paychex, Inc. | 3,830 | 100,652 | ||||||
Texas Instruments, Inc. | 6,360 | 98,707 | ||||||
Flir Systems, Inc.* | 3,210 | 98,483 | ||||||
Yahoo!, Inc.* | 7,775 | 94,855 | ||||||
NetApp, Inc.* | 6,722 | 93,906 | ||||||
Oracle Corp.* | 5,141 | 91,150 | ||||||
Intuit, Inc.* | 3,743 | 89,046 | ||||||
Cisco Systems, Inc.* | 5,381 | 87,710 | ||||||
eBay, Inc.* | 6,267 | 87,487 | ||||||
VeriSign, Inc.* | 4,560 | 87,005 | ||||||
Qualcomm, Inc. | 2,376 | 85,132 | ||||||
Total System Services, Inc. | 5,838 | 81,732 | ||||||
Altera Corp. | 4,870 | 81,378 | ||||||
Harris Corp. | 2,039 | 77,584 | ||||||
Fiserv, Inc.* | 1,877 | 68,266 | ||||||
Adobe Systems, Inc.* | 3,190 | 67,915 | ||||||
Lexmark International, Inc.* | 2,464 | 66,282 | ||||||
MEMC Electronic Materials, Inc.* | 4,588 | 65,517 | ||||||
Compuware Corp.* | 9,030 | 60,953 | ||||||
Total Information Technology | 3,623,416 | |||||||
ENERGY 16.1% | ||||||||
Sunoco, Inc. | 4,155 | 180,576 | ||||||
Schlumberger Ltd. | 3,550 | 150,271 | ||||||
XTO Energy, Inc. | 4,073 | 143,655 | ||||||
Exxon Mobil Corp. | 1,565 | 124,934 | ||||||
Murphy Oil Corp. | 2,668 | 118,326 | ||||||
EOG Resources, Inc. | 1,717 | 114,318 | ||||||
BJ Services Co. | 9,656 | 112,686 | ||||||
Chesapeake Energy Corp. | 6,876 | 111,185 | ||||||
Chevron Corp. | 1,400 | 103,558 | ||||||
Nabors Industries Ltd.* | 8,430 | 100,907 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Apache Corp. | 1,333 | $ | 99,348 | |||||
Baker Hughes, Inc. | 2,900 | 93,003 | ||||||
Hess Corp. | 1,630 | 87,433 | ||||||
Cabot Oil & Gas Corp. | 3,237 | 84,162 | ||||||
Anadarko Petroleum Corp. | 2,040 | 78,642 | ||||||
Smith International, Inc. | 3,418 | 78,238 | ||||||
ENSCO International, Inc. | 2,610 | 74,098 | ||||||
Consol Energy, Inc. | 2,510 | 71,736 | ||||||
Cameron International Corp.* | 3,366 | 69,003 | ||||||
Devon Energy Corp. | 980 | 64,396 | ||||||
Range Resources Corp. | 1,810 | 62,246 | ||||||
Total Energy | 2,122,721 | |||||||
HEALTH CARE 13.6% | ||||||||
Celgene Corp.* | 3,509 | 193,977 | ||||||
Intuitive Surgical, Inc.* | 1,520 | 193,025 | ||||||
DaVita, Inc.* | 2,977 | 147,570 | ||||||
IMS Health, Inc. | 7,801 | 118,263 | ||||||
UnitedHealth Group, Inc. | 4,347 | 115,630 | ||||||
Waters Corp.* | 2,882 | 105,625 | ||||||
Varian Medical Systems, Inc.* | 2,921 | 102,352 | ||||||
Express Scripts, Inc.* | 1,821 | 100,119 | ||||||
Amgen, Inc.* | 1,528 | 88,242 | ||||||
Forest Laboratories, Inc.* | 3,102 | 79,008 | ||||||
Biogen Idec, Inc.* | 1,620 | 77,161 | ||||||
Johnson & Johnson, Inc. | 1,282 | 76,702 | ||||||
St. Jude Medical, Inc.* | 2,186 | 72,051 | ||||||
Medtronic, Inc. | 2,254 | 70,821 | ||||||
Stryker Corp. | 1,639 | 65,478 | ||||||
Laboratory Corporation of America Holdings* | 993 | 63,959 | ||||||
Zimmer Holdings, Inc.* | 1,556 | 62,893 | ||||||
Patterson Companies, Inc.* | 2,995 | 56,156 | ||||||
Total Health Care | 1,789,032 | |||||||
CONSUMER DISCRETIONARY 13.2% | ||||||||
Sears Holdings Corp.* | 4,484 | 174,293 | ||||||
Coach, Inc.* | 7,335 | 152,348 | ||||||
Abercrombie & Fitch Co. — Class A | 5,773 | 133,183 | ||||||
Apollo Group, Inc. — Class A* | 1,672 | 128,109 | ||||||
Amazon.com, Inc.* | 2,185 | 112,047 | ||||||
Wynn Resorts Ltd.* | 2,470 | 104,382 | ||||||
TJX Companies, Inc. | 5,028 | 103,426 | ||||||
AutoZone, Inc.* | 730 | 101,813 | ||||||
Black & Decker Corp. | 2,347 | 98,128 | ||||||
Starbucks Corp.* | 10,226 | 96,738 | ||||||
Sherwin-Williams Co. | 1,600 | 95,600 | ||||||
Yum! Brands, Inc. | 2,771 | 87,286 | ||||||
McGraw-Hill Companies, Inc. | 3,620 | 83,948 | ||||||
Bed Bath & Beyond, Inc.* | 3,216 | 81,751 | ||||||
Viacom, Inc. — Class B* | 3,760 | 71,665 |
114 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
LARGE-CAP GROWTH FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Nike, Inc. — Class B | 1,234 | $ | 62,934 | |||||
GameStop Corp. — Class A* | 2,850 | 61,731 | ||||||
Total Consumer Discretionary | 1,749,382 | |||||||
INDUSTRIALS 9.6% | ||||||||
Caterpillar, Inc. | 3,020 | 134,904 | ||||||
Paccar, Inc. | 4,340 | 124,124 | ||||||
Rockwell Collins, Inc. | 2,948 | 115,237 | ||||||
CH Robinson Worldwide, Inc. | 1,910 | 105,107 | ||||||
Rockwell Automation, Inc. | 3,050 | 98,332 | ||||||
3M Co. | 1,610 | 92,639 | ||||||
Equifax, Inc. | 3,480 | 92,290 | ||||||
Dun & Bradstreet Corp. | 1,180 | 91,096 | ||||||
Expeditors International of Washington, Inc. | 2,715 | 90,328 | ||||||
Lockheed Martin Corp. | 1,040 | 87,443 | ||||||
Robert Half International, Inc. | 3,980 | 82,864 | ||||||
Fastenal Co. | 2,330 | 81,201 | ||||||
Danaher Corp. | 1,238 | 70,083 | ||||||
Total Industrials | 1,265,648 | |||||||
FINANCIALS 7.6% | ||||||||
IntercontinentalExchange, Inc.* | 2,180 | 179,719 | ||||||
NYSE Euronext | 6,096 | 166,909 | ||||||
SLM Corp.* | 16,080 | 143,112 | ||||||
Goldman Sachs Group, Inc. | 1,500 | 126,585 | ||||||
CB Richard Ellis Group, Inc. — Class A* | 27,619 | 119,314 | ||||||
CME Group, Inc. | 480 | 99,893 | ||||||
Progressive Corp. | 6,564 | 97,213 | ||||||
Franklin Resources, Inc. | 1,126 | 71,816 | ||||||
Total Financials | 1,004,561 | |||||||
MATERIALS 5.2% | ||||||||
Titanium Metals Corp. | 21,895 | 192,895 | ||||||
Nucor Corp. | 3,613 | 166,921 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 6,530 | 159,593 | ||||||
Ball Corp. | 2,428 | 100,980 | ||||||
Ecolab, Inc. | 1,788 | 62,848 | ||||||
Total Materials | 683,237 | |||||||
CONSUMER STAPLES 5.0% | ||||||||
Avon Products, Inc. | 3,717 | 89,320 | ||||||
PepsiCo, Inc. | 1,603 | 87,796 | ||||||
Colgate-Palmolive Co. | 1,233 | 84,510 | ||||||
Sysco Corp. | 3,630 | 83,272 | ||||||
Campbell Soup Co. | 2,692 | 80,787 | ||||||
Hershey Co. | 2,318 | 80,527 | ||||||
Kellogg Co. | 1,817 | 79,676 | ||||||
Estee Lauder Companies, Inc. — Class A | 2,420 | 74,923 | ||||||
Total Consumer Staples | 660,811 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
UTILITIES 0.5% | ||||||||
Questar Corp. | 2,170 | $ | 70,937 | |||||
Total Utilities | 70,937 | |||||||
Total Common Stocks | ||||||||
(Cost $11,804,536) | 12,969,745 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 2.0% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 257,295 | 257,295 | |||||
Total Repurchase Agreement | ||||||||
(Cost $257,295) | 257,295 | |||||||
Total Investments 100.2% | ||||||||
(Cost $12,061,831) | $ | 13,227,040 | ||||||
Liabilities in Excess of Other Assets – (0.2)% | $ | (20,275 | ) | |||||
Net Assets – 100.0% | $ | 13,206,765 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 5. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 115 |
SCHEDULE OF INVESTMENTS
December 31, 2008
U.S. GOVERNMENT MONEY MARKET FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 91.2% | ||||||||
Fannie Mae†† | ||||||||
2.00% due 01/02/09 | $ | 25,000,000 | $ | 25,000,000 | ||||
1.19% due 02/23/09 | 25,000,000 | 24,957,028 | ||||||
2.30% due 02/05/09 | 25,000,000 | 24,945,694 | ||||||
1.35% due 03/30/09 | 25,000,000 | 24,918,438 | ||||||
Freddie Mac†† | ||||||||
2.30% due 02/03/09 | 25,000,000 | 24,948,889 | ||||||
1.45% due 04/08/09 | 25,000,000 | 24,903,333 | ||||||
2.90% due 02/24/09 | 25,000,000 | 24,893,264 | ||||||
1.15% due 05/11/09 | 15,000,000 | 14,938,187 | ||||||
Federal Home Loan Bank* | ||||||||
2.32% due 01/08/09 | 25,000,000 | 24,990,333 | ||||||
3.10% due 01/12/09 | 25,000,000 | 24,978,472 | ||||||
2.80% due 02/17/09 | 20,000,000 | 19,928,444 | ||||||
Farmer Mac* | ||||||||
2.05% due 01/06/09 | 25,000,000 | 24,994,306 | ||||||
1.20% due 03/12/09 | 25,000,000 | 24,942,500 | ||||||
1.25% due 06/25/09 | 20,000,000 | 19,879,167 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $329,218,055) | 329,218,055 | |||||||
FEDERAL AGENCY BONDS 6.9% | ||||||||
Federal Home Loan Bank* 3.25% due 01/14/09 | 25,000,000 | 25,000,000 | ||||||
Total Federal Agency Bonds | ||||||||
(Cost $25,000,000) | 25,000,000 | |||||||
REPURCHASE AGREEMENTS† 5.5% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 5,019,676 | 5,019,676 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 5,019,676 | 5,019,676 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 5,019,676 | 5,019,676 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 4,530,628 | 4,530,628 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $19,589,656) | 19,589,656 | |||||||
Total Investments 103.6% | ||||||||
(Cost $373,807,711) | $ | 373,807,711 | ||||||
Liabilities in Excess of Other Assets – (3.6)% | $ | (12,861,810 | ) | |||||
Net Assets – 100.0% | $ | 360,945,901 |
* | 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. | |
† | Repurchase Agreements — See Note 5. | |
†† | On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. |
116 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
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See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 117 |
STATEMENTS OF ASSETS AND LIABILITIES
Inverse | Inverse | |||||||||||||||
S&P 500 | NASDAQ-100® | |||||||||||||||
Nova | Strategy | NASDAQ-100® | Strategy | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investment Securities | $ | 25,189,604 | $ | 9,999,807 | $ | 28,451,898 | $ | 999,967 | ||||||||
Repurchase Agreements | 10,458,976 | 8,368,873 | 3,418,313 | 11,733,400 | ||||||||||||
Total Investments | 35,648,580 | 18,368,680 | 31,870,211 | 12,733,367 | ||||||||||||
Segregated Cash with Broker | 3,412,211 | 2,598,840 | 432,356 | 1,856,708 | ||||||||||||
Cash | — | — | — | — | ||||||||||||
Unrealized Appreciation On Swap Agreements | 235,937 | 54,078 | 13,995 | 15,823 | ||||||||||||
Receivable for Equity Index Swap Settlement | — | 1,762,630 | — | 4,445 | ||||||||||||
Variation Margin on Futures Contracts | 254,607 | — | 19,221 | — | ||||||||||||
Receivable for Securities Sold | 92,394 | — | 8,337 | — | ||||||||||||
Receivable for Fund Shares Sold | 126,188 | 1,843,291 | 994,914 | 49,576 | ||||||||||||
Investment Income Receivable | 56,792 | 8 | 11,568 | 11 | ||||||||||||
Total Assets | 39,826,709 | 24,627,527 | 33,350,602 | 14,659,930 | ||||||||||||
Liabilities | ||||||||||||||||
Unrealized Depreciation On Swap Agreements | — | — | — | — | ||||||||||||
Payable for Equity Index Swap Settlement | 188,097 | — | 34,683 | — | ||||||||||||
Variation Margin on Futures Contracts | — | 133,773 | — | 68,993 | ||||||||||||
Payable for Securities Purchased | 4,099,200 | — | — | — | ||||||||||||
Payable for Fund Shares Redeemed | 375,736 | 521,278 | 249,480 | 2,425,665 | ||||||||||||
Investment Advisory Fees Payable | 21,324 | 32,372 | 20,773 | 12,113 | ||||||||||||
Transfer Agent and Administrative Fees Payable | 7,108 | 8,992 | 6,924 | 3,365 | ||||||||||||
Distribution and Service Fees Payable | 7,108 | 8,992 | 6,924 | 3,365 | ||||||||||||
Portfolio Accounting Fees Payable | 2,843 | 3,597 | 2,770 | 1,346 | ||||||||||||
Custody Fees Payable | 920 | 1,157 | 897 | 435 | ||||||||||||
Other Accrued Fees | 37,490 | 39,871 | 41,821 | 17,282 | ||||||||||||
Total Liabilities | 4,739,826 | 750,032 | 364,272 | 2,532,564 | ||||||||||||
Net Assets | $ | 35,086,883 | $ | 23,877,495 | $ | 32,986,330 | $ | 12,127,366 | ||||||||
�� | ||||||||||||||||
Net Assets Consist Of | ||||||||||||||||
Paid-In Capital | $ | 125,040,332 | $ | 30,780,481 | $ | 352,439,484 | $ | 21,070,689 | ||||||||
Undistributed Net Investment Income | 410,874 | — | — | 16,229 | ||||||||||||
Accumulated Net Realized Gain (Loss) on Investments | (89,224,759 | ) | (6,887,931 | ) | (325,087,401 | ) | (9,035,761 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) on Investments | (1,139,564 | ) | (15,055 | ) | 5,634,247 | 76,209 | ||||||||||
Net Assets | $ | 35,086,883 | $ | 23,877,495 | $ | 32,986,330 | $ | 12,127,366 | ||||||||
Shares Outstanding | 7,710,637 | 408,574 | 3,142,170 | 484,031 | ||||||||||||
Net Asset Values | $ | 4.55 | $ | 58.44 | $ | 10.50 | $ | 25.05 | ||||||||
Cost of Investments | $ | 37,466,584 | $ | 18,368,680 | $ | 26,275,174 | $ | 12,733,367 |
118 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
December 31, 2008
Inverse | Inverse | Government | ||||||||||||||||||||||||||||||
S&P 500 | NASDAQ-100® | Mid-Cap | Mid-Cap | Russell 2000® | Russell 2000® | Russell 2000® | Long Bond | |||||||||||||||||||||||||
2x Strategy | 2x Strategy | 1.5x Strategy | Strategy | 2x Strategy | 1.5x Strategy | Strategy | 1.2x Strategy | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
$ | 16,221,554 | $ | 17,850,087 | $ | 6,926,822 | $ | 999,984 | $ | 1,570,771 | $ | 9,181,157 | $ | 1,499,975 | $ | 47,710,219 | |||||||||||||||||
6,025,059 | 2,429,821 | 3,691,357 | 3,428,660 | 1,021,458 | 3,494,530 | 4,154,137 | 20,572,474 | |||||||||||||||||||||||||
22,246,613 | 20,279,908 | 10,618,179 | 4,428,644 | 2,592,229 | 12,675,687 | 5,654,112 | 68,282,693 | |||||||||||||||||||||||||
3,855,128 | 3,995,103 | 1,119,960 | 520,741 | 445,409 | 1,611,003 | 804,971 | 2,083,200 | |||||||||||||||||||||||||
— | — | — | — | — | 23,177 | — | — | |||||||||||||||||||||||||
377,636 | 76,539 | 159,908 | — | 268,188 | 343,880 | — | — | |||||||||||||||||||||||||
— | — | 8,337 | — | 11,565 | — | — | — | |||||||||||||||||||||||||
343,170 | 71,570 | 93,013 | — | 6,018 | 128,780 | — | — | |||||||||||||||||||||||||
70,602 | 5,324 | 88,274 | — | 3,330 | 13,690 | — | — | |||||||||||||||||||||||||
299,572 | 126,583 | 1,163,346 | 13,015 | 250,537 | 26,754 | 1,707,317 | — | |||||||||||||||||||||||||
27,783 | 5,358 | 10,599 | 3 | 2,505 | 9,425 | 4 | 128,426 | |||||||||||||||||||||||||
27,220,504 | 24,560,385 | 13,261,616 | 4,962,403 | 3,579,781 | 14,832,396 | 8,166,404 | 70,494,319 | |||||||||||||||||||||||||
— | — | — | 75,791 | — | — | 165,120 | — | |||||||||||||||||||||||||
74,369 | 307,142 | — | 11,515 | — | 28,881 | 149,062 | — | |||||||||||||||||||||||||
— | — | — | 51,620 | — | — | 56,400 | 2,088,897 | |||||||||||||||||||||||||
100,611 | — | 42,680 | — | — | — | — | 172,973 | |||||||||||||||||||||||||
478,618 | 854,359 | 39,107 | 36 | 152,117 | 796,724 | 9 | 4,511,634 | |||||||||||||||||||||||||
19,232 | 14,685 | 8,005 | 3,884 | 1,917 | 8,338 | 5,510 | 32,736 | |||||||||||||||||||||||||
5,342 | 4,079 | 2,223 | 1,079 | 532 | 2,316 | 1,531 | 13,094 | |||||||||||||||||||||||||
5,342 | 4,079 | 2,223 | 1,079 | 532 | 2,316 | 1,531 | 16,368 | |||||||||||||||||||||||||
2,137 | 1,632 | 889 | 432 | 213 | 927 | 612 | 6,547 | |||||||||||||||||||||||||
695 | 528 | 294 | 140 | 78 | 302 | 210 | 2,125 | |||||||||||||||||||||||||
20,971 | 26,389 | 15,841 | 4,285 | 2,916 | 14,265 | 8,575 | 55,736 | |||||||||||||||||||||||||
707,317 | 1,212,893 | 111,262 | 149,861 | 158,305 | 854,069 | 388,560 | 6,900,110 | |||||||||||||||||||||||||
$ | 26,513,187 | $ | 23,347,492 | $ | 13,150,354 | $ | 4,812,542 | $ | 3,421,476 | $ | 13,978,327 | $ | 7,777,844 | $ | 63,594,209 | |||||||||||||||||
$ | 56,359,933 | $ | 62,016,355 | $ | 24,460,919 | $ | 6,251,745 | $ | 8,414,395 | $ | 25,220,144 | $ | 13,858,083 | $ | 40,900,120 | |||||||||||||||||
158,278 | — | 13,700 | — | 2,386 | 7,619 | — | — | |||||||||||||||||||||||||
(31,850,086 | ) | (41,114,414 | ) | (9,665,471 | ) | (1,259,081 | ) | (5,076,453 | ) | (11,639,460 | ) | (5,812,722 | ) | 10,965,918 | ||||||||||||||||||
1,845,062 | 2,445,551 | (1,658,794 | ) | (180,122 | ) | 81,148 | 390,024 | (267,517 | ) | 11,728,171 | ||||||||||||||||||||||
$ | 26,513,187 | $ | 23,347,492 | $ | 13,150,354 | $ | 4,812,542 | $ | 3,421,476 | $ | 13,978,327 | $ | 7,777,844 | $ | 63,594,209 | |||||||||||||||||
4,304,837 | 2,845,744 | 1,340,447 | 102,824 | 464,428 | 843,723 | 182,152 | 3,687,857 | |||||||||||||||||||||||||
$ | 6.16 | $ | 8.20 | $ | 9.81 | $ | 46.80 | $ | 7.37 | $ | 16.57 | $ | 42.70 | $ | 17.24 | |||||||||||||||||
$ | 21,309,015 | $ | 18,109,394 | $ | 12,789,702 | $ | 4,428,644 | $ | 2,778,460 | $ | 12,922,012 | $ | 5,654,112 | $ | 60,345,068 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 119 |
STATEMENTS OF ASSETS AND LIABILITIES (concluded)
Inverse | ||||||||||||||||
Government | ||||||||||||||||
Long Bond | Europe 1.25x | Japan 1.25x | Dow 2x | |||||||||||||
Strategy | Strategy | Strategy | Strategy | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investment Securities | $ | 3,499,930 | $ | 10,654,203 | $ | — | $ | 21,431,790 | ||||||||
Repurchase Agreements | 6,987,293 | 1,446,198 | 10,280,272 | 5,278,875 | ||||||||||||
Total Investments | 10,487,223 | 12,100,401 | 10,280,272 | 26,710,665 | ||||||||||||
Segregated Cash with Broker | 456,766 | 1,175,470 | 2,199,800 | 6,374,500 | ||||||||||||
Cash | — | 243 | — | — | ||||||||||||
Unrealized Appreciation On Swap Agreements | — | — | — | — | ||||||||||||
Variation Margin on Futures Contracts | 542,371 | 21,656 | 42,629 | — | ||||||||||||
Receivable for Securities Sold | — | — | — | — | ||||||||||||
Receivable for Fund Shares Sold | 638,698 | 1,859,309 | 611,243 | 6,638,542 | ||||||||||||
Investment Income Receivable | 7 | 20,956 | 10 | 28,877 | ||||||||||||
Prepaid Insurance | — | — | — | — | ||||||||||||
Total Assets | 12,125,065 | 15,178,035 | 13,133,954 | 39,752,584 | ||||||||||||
Liabilities | ||||||||||||||||
Unrealized Depreciation On Swap Agreements | — | — | — | 17,276 | ||||||||||||
Variation Margin on Futures Contracts | — | — | — | 1,143,549 | ||||||||||||
Payable for Securities Purchased | — | 2,605,349 | — | 2,193,908 | ||||||||||||
Payable for Fund Shares Redeemed | 1,474,665 | 547 | 6,865 | — | ||||||||||||
Investment Advisory Fees Payable | 7,261 | 8,374 | 7,630 | 19,576 | ||||||||||||
Transfer Agent and Administrative Fees Payable | 2,017 | 2,326 | 2,119 | 5,438 | ||||||||||||
Distribution and Service Fees Payable | 2,017 | 2,326 | 2,119 | 5,438 | ||||||||||||
Portfolio Accounting Fees Payable | 807 | 930 | 848 | 2,175 | ||||||||||||
Custody Fees Payable | 260 | 301 | 276 | 746 | ||||||||||||
Other Accrued Fees | 13,143 | 22,404 | 10,201 | 16,614 | ||||||||||||
Total Liabilities | 1,500,170 | 2,642,557 | 30,058 | 3,404,720 | ||||||||||||
Net Assets | $ | 10,624,895 | $ | 12,535,478 | $ | 13,103,896 | $ | 36,347,864 | ||||||||
Net Assets Consist Of | ||||||||||||||||
Paid-In Capital | $ | 25,704,289 | $ | 30,245,506 | $ | 21,724,593 | $ | 62,420,066 | ||||||||
Undistributed Net Investment Income | — | 517,214 | 31,969 | — | ||||||||||||
Accumulated Net Realized Gain (Loss) on Investments | (15,251,821 | ) | (19,435,345 | ) | (9,631,943 | ) | (25,345,923 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) on Investments | 172,427 | 1,208,103 | 979,277 | (726,279 | ) | |||||||||||
Net Assets | $ | 10,624,895 | $ | 12,535,478 | $ | 13,103,896 | $ | 36,347,864 | ||||||||
Shares Outstanding | 781,353 | 991,239 | 869,037 | 3,767,512 | ||||||||||||
Net Asset Values | $ | 13.60 | $ | 12.65 | $ | 15.08 | $ | 9.65 | ||||||||
Cost of Investments | $ | 10,488,386 | $ | 11,380,969 | $ | 10,280,272 | $ | 28,197,618 |
120 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
December 31, 2008
Inverse | ||||||||||||||||||||||||||||||||
Dow 2x | Small-Cap | Mid-Cap | Large-Cap | Small-Cap | Mid-Cap | Large-Cap | U.S. Government | |||||||||||||||||||||||||
Strategy | Value | Value | Value | Growth | Growth | Growth | Money Market | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
$ | 2,999,932 | $ | 10,334,867 | $ | 7,391,106 | $ | 9,311,439 | $ | 13,452,725 | $ | 11,402,630 | $ | 12,969,745 | $ | 354,218,055 | |||||||||||||||||
5,743,422 | 220,141 | 146,417 | 158,196 | 256,482 | 219,753 | 257,295 | 19,589,656 | |||||||||||||||||||||||||
8,743,354 | 10,555,008 | 7,537,523 | 9,469,635 | 13,709,207 | 11,622,383 | 13,227,040 | 373,807,711 | |||||||||||||||||||||||||
2,761,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
17,210 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
— | 1,968,275 | 36,063 | 391,127 | — | 117,811 | — | — | |||||||||||||||||||||||||
1,208,775 | 419,676 | 479,931 | 66,584 | 1,233,950 | 512,811 | 1,845,198 | 32,992 | |||||||||||||||||||||||||
6 | 38,219 | 15,322 | 50,421 | 5,379 | 4,768 | 13,295 | 217,178 | |||||||||||||||||||||||||
— | — | — | — | — | — | — | 52,404 | |||||||||||||||||||||||||
12,730,345 | 12,981,178 | 8,068,839 | 9,977,767 | 14,948,536 | 12,257,773 | 15,085,533 | 374,110,285 | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
205,667 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
— | 43,121 | 111,822 | 229,108 | 384,807 | 202,023 | 633,227 | — | |||||||||||||||||||||||||
790,679 | 2,603,744 | 342,057 | 240,926 | 820,120 | 330,208 | 1,211,660 | 12,422,685 | |||||||||||||||||||||||||
10,256 | 6,549 | 4,419 | 6,680 | 7,338 | 6,998 | 8,921 | 186,400 | |||||||||||||||||||||||||
2,849 | 2,183 | 1,473 | 2,227 | 2,446 | 2,333 | 2,974 | 74,560 | |||||||||||||||||||||||||
2,849 | 2,183 | 1,473 | 2,227 | 2,446 | 2,333 | 2,974 | 93,200 | |||||||||||||||||||||||||
1,140 | 873 | 589 | 891 | 978 | 933 | 1,189 | 33,424 | |||||||||||||||||||||||||
367 | 317 | 194 | 292 | 320 | 302 | 421 | 12,563 | |||||||||||||||||||||||||
13,135 | 11,950 | 11,775 | 16,697 | 12,606 | 17,922 | 17,402 | 341,552 | |||||||||||||||||||||||||
1,026,942 | 2,670,920 | 473,802 | 499,048 | 1,231,061 | 563,052 | 1,878,768 | 13,164,384 | |||||||||||||||||||||||||
$ | 11,703,403 | $ | 10,310,258 | $ | 7,595,037 | $ | 9,478,719 | $ | 13,717,475 | $ | 11,694,721 | $ | 13,206,765 | $ | 360,945,901 | |||||||||||||||||
$ | 12,303,784 | $ | 23,388,064 | $ | 17,841,268 | $ | 22,831,635 | $ | 22,887,698 | $ | 22,827,004 | $ | 24,899,824 | $ | 360,862,374 | |||||||||||||||||
— | 198,801 | 266,722 | 438,407 | — | — | — | 7,497 | |||||||||||||||||||||||||
(341,409 | ) | (13,509,777 | ) | (9,713,927 | ) | (13,962,417 | ) | (10,342,361 | ) | (11,209,878 | ) | (12,858,268 | ) | 76,030 | ||||||||||||||||||
(258,972 | ) | 233,170 | (799,026 | ) | 171,094 | 1,172,138 | 77,595 | 1,165,209 | — | |||||||||||||||||||||||
$ | 11,703,403 | $ | 10,310,258 | $ | 7,595,037 | $ | 9,478,719 | $ | 13,717,475 | $ | 11,694,721 | $ | 13,206,765 | $ | 360,945,901 | |||||||||||||||||
328,628 | 1,014,141 | 873,863 | 1,034,488 | 771,655 | 620,332 | 801,956 | 360,881,979 | |||||||||||||||||||||||||
$35.61 | $ | 10.17 | $ | 8.69 | $ | 9.16 | $ | 17.78 | $ | 18.85 | $ | 16.47 | $ | 1.00 | ||||||||||||||||||
$ | 8,743,354 | $ | 10,321,838 | $ | 8,336,549 | $ | 9,298,541 | $ | 12,537,069 | $ | 11,544,788 | $ | 12,061,831 | $ | 373,807,711 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 121 |
STATEMENTS OF OPERATIONS
Inverse | Inverse | |||||||||||||||
S&P 500 | NASDAQ-100® | |||||||||||||||
Nova | Strategy | NASDAQ-100® | Strategy | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Interest | $ | 212,224 | $ | 785,812 | $ | 226,225 | $ | 369,978 | ||||||||
Income from Securities Lending, net | 27,863 | — | 42,213 | — | ||||||||||||
Dividends, Net of Foreign Tax Withheld | 1,005,684 | — | 236,894 | — | ||||||||||||
Total Income | 1,245,771 | 785,812 | 505,332 | 369,978 | ||||||||||||
Expenses | ||||||||||||||||
Investment Advisory Fees | 412,934 | 461,704 | 412,279 | 187,755 | ||||||||||||
Transfer Agent and Administrative Fees | 137,645 | 128,251 | 137,426 | 52,154 | ||||||||||||
Audit and Outside Service Fees | 29,169 | 31,301 | 29,851 | 12,080 | ||||||||||||
Portfolio Accounting Fees | 55,058 | 51,301 | 54,971 | 20,862 | ||||||||||||
Trustees’ Fees* | 7,040 | 5,502 | 7,031 | 2,515 | ||||||||||||
Shareholder Service Fees | 137,645 | 128,251 | 137,426 | 52,154 | ||||||||||||
Custody Fees | 15,676 | 14,155 | 15,118 | 5,689 | ||||||||||||
Miscellaneous | 39,730 | 38,745 | 53,539 | 20,540 | ||||||||||||
Total Expenses | 834,897 | 859,210 | 847,641 | 353,749 | ||||||||||||
Net Investment Income (Loss) | 410,874 | (73,398 | ) | (342,309 | ) | 16,229 | ||||||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investment Securities | (8,227,311 | ) | — | (5,926,090 | ) | — | ||||||||||
Equity Index Swaps | (5,462,082 | ) | 2,991,819 | (2,036,128 | ) | 2,776,341 | ||||||||||
Futures Contracts | (15,211,059 | ) | 20,828,635 | (2,947,425 | ) | 5,741,067 | ||||||||||
Total Net Realized Gain (Loss) | (28,900,452 | ) | 23,820,454 | (10,909,643 | ) | 8,517,408 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investment Securities | (9,885,703 | ) | — | (18,012,043 | ) | — | ||||||||||
Equity Index Swaps | 422,577 | (41,579 | ) | 105,515 | (90,960 | ) | ||||||||||
Futures Contracts | 209,271 | (171,177 | ) | (31,050 | ) | (14,606 | ) | |||||||||
Net Change in Unrealized Appreciation (Depreciation) | (9,253,855 | ) | (212,756 | ) | (17,937,578 | ) | (105,566 | ) | ||||||||
Net Gain (Loss) on Investments | (38,154,307 | ) | 23,607,698 | (28,847,221 | ) | 8,411,842 | ||||||||||
Net Increase (Decrease) in Net Assets from Operations | $ | (37,743,433 | ) | $ | 23,534,300 | $ | (29,189,530 | ) | $ | 8,428,071 | ||||||
Foreign Tax Withheld | $ | — | $ | — | $ | 2,809 | $ | — |
* | Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act. |
122 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Year Ended December 31, 2008
Inverse | Inverse | Government | ||||||||||||||||||||||||||||||
S&P 500 | NASDAQ-100® | Mid-Cap | Mid-Cap | Russell 2000® | Russell 2000® | Russell 2000® | Long Bond | |||||||||||||||||||||||||
2x Strategy | 2x Strategy | 1.5x Strategy | Strategy | 2x Strategy | 1.5x Strategy | Strategy | 1.2x Strategy | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
$ | 188,019 | $ | 279,497 | $ | 103,757 | $ | 100,543 | $ | 33,471 | $ | 102,803 | $ | 219,809 | $ | 2,329,597 | |||||||||||||||||
10,474 | 21,619 | 16,533 | — | 3,884 | 20,065 | — | — | |||||||||||||||||||||||||
432,290 | 123,805 | 199,504 | — | 29,349 | 133,724 | — | — | |||||||||||||||||||||||||
630,783 | 424,921 | 319,794 | 100,543 | 66,704 | 256,592 | 219,809 | 2,329,597 | |||||||||||||||||||||||||
254,154 | 322,611 | 166,329 | 50,600 | 34,606 | 133,733 | 104,154 | 293,801 | |||||||||||||||||||||||||
70,598 | 89,614 | 46,203 | 14,056 | 9,613 | 37,148 | 28,932 | 117,521 | |||||||||||||||||||||||||
16,060 | 18,915 | 12,307 | 3,233 | 2,254 | 10,950 | 6,509 | 41,868 | |||||||||||||||||||||||||
28,239 | 35,846 | 18,481 | 5,622 | 3,845 | 14,859 | 11,573 | 58,760 | |||||||||||||||||||||||||
3,203 | 4,546 | 3,084 | 577 | 437 | 2,530 | 1,320 | 6,586 | |||||||||||||||||||||||||
70,598 | 89,614 | 46,203 | 14,056 | 9,613 | 37,148 | 28,932 | 146,900 | |||||||||||||||||||||||||
8,615 | 16,968 | 5,052 | 1,540 | 1,092 | 4,193 | 3,174 | 17,145 | |||||||||||||||||||||||||
21,038 | 35,212 | 8,435 | 4,245 | 2,999 | 8,576 | 10,328 | 32,145 | |||||||||||||||||||||||||
472,505 | 613,326 | 306,094 | 93,929 | 64,459 | 249,137 | 194,922 | 714,726 | |||||||||||||||||||||||||
158,278 | (188,405 | ) | 13,700 | 6,614 | 2,245 | 7,455 | 24,887 | 1,614,871 | ||||||||||||||||||||||||
(8,076,543 | ) | (5,602,721 | ) | (3,736,213 | ) | — | (888,736 | ) | (3,659,903 | ) | — | 11,433,554 | ||||||||||||||||||||
(4,465,377 | ) | (8,367,393 | ) | (1,695,948 | ) | 345,049 | (1,811,654 | ) | (4,482,525 | ) | 2,780,994 | — | ||||||||||||||||||||
(18,014,300 | ) | (19,507,206 | ) | (3,412,129 | ) | 266,998 | (1,368,611 | ) | (2,047,560 | ) | (795,528 | ) | 4,354,023 | |||||||||||||||||||
(30,556,220 | ) | (33,477,320 | ) | (8,844,290 | ) | 612,047 | (4,069,001 | ) | (10,189,988 | ) | 1,985,466 | 15,787,577 | ||||||||||||||||||||
(2,234,494 | ) | (7,906,328 | ) | (1,977,768 | ) | — | (197,412 | ) | (610,055 | ) | — | 6,063,321 | ||||||||||||||||||||
724,814 | 75,899 | 58,149 | (109,252 | ) | 273,675 | 360,617 | (158,175 | ) | — | |||||||||||||||||||||||
334,735 | 117,230 | 568,472 | (134,516 | ) | (36,450 | ) | 192,139 | (100,552 | ) | 3,856,232 | ||||||||||||||||||||||
(1,174,945 | ) | (7,713,199 | ) | (1,351,147 | ) | (243,768 | ) | 39,813 | (57,299 | ) | (258,727 | ) | 9,919,553 | |||||||||||||||||||
(31,731,165 | ) | (41,190,519 | ) | (10,195,437 | ) | 368,279 | (4,029,188 | ) | (10,247,287 | ) | 1,726,739 | 25,707,130 | ||||||||||||||||||||
$ | (31,572,887 | ) | $ | (41,378,924 | ) | $ | (10,181,737 | ) | $ | 374,893 | $ | (4,026,943 | ) | $ | (10,239,832 | ) | $ | 1,751,626 | $ | 27,322,001 | ||||||||||||
$ | — | $ | 1,366 | $ | — | $ | — | $ | 13 | $ | 61 | $ | — | $ | — |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 123
STATEMENTS OF OPERATIONS (concluded)
Inverse | ||||||||||||||||
Government | ||||||||||||||||
Long Bond | Europe 1.25x | Japan 1.25x | Dow 2x | |||||||||||||
Strategy | Strategy | Strategy | Strategy | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Interest | $ | 488,636 | $ | 100,246 | $ | 243,012 | $ | 135,712 | ||||||||
Income from Securities Lending, net | — | 28,064 | — | 10,007 | ||||||||||||
Dividends, Net of Foreign Tax Withheld | — | 1,099,708 | — | 597,412 | ||||||||||||
Total Income | 488,636 | 1,228,018 | 243,012 | 743,131 | ||||||||||||
Expenses | ||||||||||||||||
Investment Advisory Fees | 146,730 | 277,461 | 114,910 | 258,899 | ||||||||||||
Transfer Agent and Administrative Fees | 40,758 | 77,072 | 31,919 | 71,916 | ||||||||||||
Audit and Outside Service Fees | 10,219 | 15,306 | 7,901 | 7,375 | ||||||||||||
Portfolio Accounting Fees | 16,303 | 30,829 | 12,768 | 28,766 | ||||||||||||
Interest Expense | 401,188 | — | — | — | ||||||||||||
Trustees’ Fees* | 2,146 | 5,116 | 1,979 | 2,705 | ||||||||||||
Shareholder Service Fees | 40,758 | 77,072 | 31,919 | 71,916 | ||||||||||||
Custody Fees | 4,390 | 8,962 | 3,427 | 7,896 | ||||||||||||
Treasury Guarantee Program Fees | — | — | — | — | ||||||||||||
Miscellaneous | 8,064 | 21,242 | 6,220 | 33,807 | ||||||||||||
Total Expenses | 670,556 | 513,060 | 211,043 | 483,280 | ||||||||||||
Net Investment Income (Loss) | (181,920 | ) | 714,958 | 31,969 | 259,851 | |||||||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investment Securities | (4,019 | ) | (7,924,161 | ) | — | (2,465,721 | ) | |||||||||
Equity Index Swaps | — | (3,597,156 | ) | (2,889,262 | ) | (3,655,411 | ) | |||||||||
Futures Contracts | (3,724,609 | ) | (4,621,876 | ) | (3,956,852 | ) | (14,110,894 | ) | ||||||||
Securities Sold Short | (755,257 | ) | — | — | — | |||||||||||
Net Increase from Payments by Affiliates | — | — | 179,990 | — | ||||||||||||
Total Net Realized Gain (Loss) | (4,483,885 | ) | (16,143,193 | ) | (6,666,124 | ) | (20,232,026 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investment Securities | (1,163 | ) | (6,914,118 | ) | — | (5,446,832 | ) | |||||||||
Equity Index Swaps | — | 625,460 | 380,195 | 572,842 | ||||||||||||
Futures Contracts | 125,221 | 488,672 | 1,140,540 | 715,598 | ||||||||||||
Securities Sold Short | 87,697 | — | — | — | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 211,755 | (5,799,986 | ) | 1,520,735 | (4,158,392 | ) | ||||||||||
Net Gain (Loss) on Investments | (4,272,130 | ) | (21,943,179 | ) | (5,145,389 | ) | (24,390,418 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | $ | (4,454,050 | ) | $ | (21,228,221 | ) | $ | (5,113,420 | ) | $ | (24,130,567 | ) | ||||
Foreign Tax Withheld | $ | — | $ | 143,150 | $ | — | $ | — |
* | Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act. |
124 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Year Ended December 31, 2008
Inverse | ||||||||||||||||||||||||||||||||
Dow 2x | Small-Cap | Mid-Cap | Large-Cap | Small-Cap | Mid-Cap | Large-Cap | U.S. Government | |||||||||||||||||||||||||
Strategy | Value | Value | Value | Growth | Growth | Growth | Money Market | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
$ | 318,095 | $ | 1,023 | $ | 1,065 | $ | 1,413 | $ | 1,450 | $ | 2,591 | $ | 2,607 | $ | 8,376,965 | |||||||||||||||||
— | 38,158 | 40,715 | 44,630 | 58,747 | 52,382 | 25,649 | — | |||||||||||||||||||||||||
— | 348,656 | 420,652 | 665,603 | 137,061 | 90,192 | 228,427 | — | |||||||||||||||||||||||||
318,095 | 387,837 | 462,432 | 711,646 | 197,258 | 145,165 | 256,683 | 8,376,965 | |||||||||||||||||||||||||
173,270 | 93,274 | 97,139 | 135,930 | 100,006 | 175,631 | 174,422 | 1,810,190 | |||||||||||||||||||||||||
48,130 | 31,091 | 32,380 | 45,310 | 33,335 | 58,544 | 58,141 | 724,076 | |||||||||||||||||||||||||
5,926 | 9,243 | 9,208 | 13,025 | 9,620 | 13,847 | 13,409 | 259,193 | |||||||||||||||||||||||||
19,252 | 12,436 | 12,952 | 18,124 | 13,334 | 23,417 | 23,256 | 333,993 | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
1,607 | 1,678 | 2,130 | 3,311 | 1,739 | 2,855 | 2,749 | 38,034 | |||||||||||||||||||||||||
48,130 | 31,091 | 32,380 | 45,310 | 33,335 | 58,544 | 58,141 | 905,095 | |||||||||||||||||||||||||
5,286 | 3,477 | 3,581 | 4,916 | 3,672 | 6,369 | 6,233 | 110,774 | |||||||||||||||||||||||||
— | — | — | — | — | — | — | 53,049 | |||||||||||||||||||||||||
23,231 | 6,746 | 5,940 | 7,313 | 7,336 | 13,776 | 14,167 | 198,361 | |||||||||||||||||||||||||
324,832 | 189,036 | 195,710 | 273,239 | 202,377 | 352,983 | 350,518 | 4,432,765 | |||||||||||||||||||||||||
(6,737 | ) | 198,801 | 266,722 | 438,407 | (5,119 | ) | (207,818 | ) | (93,835 | ) | 3,944,200 | |||||||||||||||||||||
— | (10,574,577 | ) | (7,541,970 | ) | (11,659,693 | ) | (6,099,762 | ) | (6,088,855 | ) | (9,182,357 | ) | 77,579 | |||||||||||||||||||
5,230,736 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
5,198,438 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
10,429,174 | (10,574,577 | ) | (7,541,970 | ) | (11,659,693 | ) | (6,099,762 | ) | (6,088,855 | ) | (9,182,357 | ) | 77,579 | |||||||||||||||||||
— | (66,716 | ) | (785,062 | ) | 4,873 | (281,627 | ) | (3,409,958 | ) | (2,461,497 | ) | — | ||||||||||||||||||||
(376,197 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
(389,905 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
(766,102 | ) | (66,716 | ) | (785,062 | ) | 4,873 | (281,627 | ) | (3,409,958 | ) | (2,461,497 | ) | — | |||||||||||||||||||
9,663,072 | (10,641,293 | ) | (8,327,032 | ) | (11,654,820 | ) | (6,381,389 | ) | (9,498,813 | ) | (11,643,854 | ) | 77,579 | |||||||||||||||||||
$ | 9,656,335 | $ | (10,442,492 | ) | $ | (8,060,310 | ) | $ | (11,216,413 | ) | $ | (6,386,508 | ) | $ | (9,706,631 | ) | $ | (11,737,689 | ) | $ | 4,021,779 | |||||||||||
$ | — | $ | 500 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 125
STATEMENTS OF CHANGES IN NET ASSETS
Inverse S&P 500 | ||||||||||||||||
Nova Fund | Strategy Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income (Loss) | $ | 410,874 | $ | 1,080,329 | $ | (73,398 | ) | $ | 825,635 | |||||||
Net Realized Gain (Loss) on Investments | (28,900,452 | ) | 5,154,818 | 23,820,454 | (1,764,661 | ) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (9,253,855 | ) | (1,800,911 | ) | (212,756 | ) | 182,590 | |||||||||
Net Increase (Decrease) in Net Assets from Operations | (37,743,433 | ) | 4,434,236 | 23,534,300 | (756,436 | ) | ||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net Investment Income | (223,114 | ) | (1,161,348 | ) | (172,209 | ) | (767,870 | ) | ||||||||
Realized Gain on Investments | — | — | — | — | ||||||||||||
Total Distributions to Shareholders | (223,114 | ) | (1,161,348 | ) | (172,209 | ) | (767,870 | ) | ||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 189,555,477 | 273,549,727 | 1,047,740,031 | 352,463,997 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 223,114 | 1,161,348 | 172,209 | 767,870 | ||||||||||||
Cost of Shares Redeemed | (198,916,487 | ) | (330,269,317 | ) | (1,069,928,756 | ) | (349,151,544 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | (9,137,896 | ) | (55,558,242 | ) | (22,016,516 | ) | 4,080,323 | |||||||||
Capital Contribution from Advisor | — | — | 950,611 | — | ||||||||||||
Net Increase (Decrease) in Net Assets | (47,104,443 | ) | (52,285,354 | ) | 2,296,186 | 2,556,017 | ||||||||||
Net Assets—Beginning of Period | 82,191,326 | 134,476,680 | 21,581,309 | 19,025,292 | ||||||||||||
Net Assets—End of Period | $ | 35,086,883 | $ | 82,191,326 | $ | 23,877,495 | $ | 21,581,309 | ||||||||
Undistributed Net Investment Income—End of Period | $ | 410,874 | $ | 223,114 | $ | — | $ | 172,208 | ||||||||
126 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Inverse NASDAQ-100® | S&P 500 | NASDAQ-100® | ||||||||||||||||||||||||||||||
NASDAQ-100®Fund | Strategy Fund | 2x Strategy Fund | 2x Strategy Fund | |||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
$ | (342,309 | ) | $ | 140,368 | $ | 16,229 | $ | 814,033 | $ | 158,278 | $ | 361,467 | $ | (188,405 | ) | $ | 205,829 | |||||||||||||||
(10,909,643 | ) | 11,931,932 | 8,517,408 | (5,163,846 | ) | (30,556,220 | ) | 1,141,227 | (33,477,320 | ) | (4,011,465 | ) | ||||||||||||||||||||
(17,937,578 | ) | (503,303 | ) | (105,566 | ) | (201,817 | ) | (1,174,945 | ) | (1,476,028 | ) | (7,713,199 | ) | 4,523,444 | ||||||||||||||||||
(29,189,530 | ) | 11,568,997 | 8,428,071 | (4,551,630 | ) | (31,572,887 | ) | 26,666 | (41,378,924 | ) | 717,808 | |||||||||||||||||||||
(77,200 | ) | (63,168 | ) | (66,793 | ) | (906,240 | ) | — | (354,038 | ) | (42,494 | ) | (186,716 | ) | ||||||||||||||||||
— | — | — | — | — | (3,786,307 | ) | — | — | ||||||||||||||||||||||||
(77,200 | ) | (63,168 | ) | (66,793 | ) | (906,240 | ) | — | (4,140,345 | ) | (42,494 | ) | (186,716 | ) | ||||||||||||||||||
235,783,846 | 352,847,814 | 350,204,615 | 1,210,258,728 | 359,293,713 | 206,969,261 | 379,346,745 | 1,067,742,482 | |||||||||||||||||||||||||
77,200 | 63,168 | 66,793 | 906,240 | — | 4,140,345 | 42,494 | 186,716 | |||||||||||||||||||||||||
(256,100,482 | ) | (354,795,402 | ) | (360,145,407 | ) | (1,215,995,634 | ) | (337,636,561 | ) | (208,230,256 | ) | (379,689,311 | ) | (1,033,063,920 | ) | |||||||||||||||||
(20,239,436 | ) | (1,884,420 | ) | (9,873,999 | ) | (4,830,666 | ) | 21,657,152 | 2,879,350 | (300,072 | ) | 34,865,278 | ||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
(49,506,166 | ) | 9,621,409 | (1,512,721 | ) | (10,288,536 | ) | (9,915,735 | ) | (1,234,329 | ) | (41,721,490 | ) | 35,396,370 | |||||||||||||||||||
82,492,496 | 72,871,087 | 13,640,087 | 23,928,623 | 36,428,922 | 37,663,251 | 65,068,982 | 29,672,612 | |||||||||||||||||||||||||
$ | 32,986,330 | $ | 82,492,496 | $ | 12,127,366 | $ | 13,640,087 | $ | 26,513,187 | $ | 36,428,922 | $ | 23,347,492 | $ | 65,068,982 | |||||||||||||||||
$ | — | $ | 77,200 | $ | 16,229 | $ | 66,793 | $ | 158,278 | $ | — | $ | — | $ | 42,493 | |||||||||||||||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 127
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Mid-Cap | Inverse Mid-Cap | |||||||||||||||
1.5x Strategy Fund | Strategy Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income | $ | 13,700 | $ | 452,666 | $ | 6,614 | $ | 105,883 | ||||||||
Net Realized Gain (Loss) on Investments | (8,844,290 | ) | (299,351 | ) | 612,047 | (236,703 | ) | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (1,351,147 | ) | (2,126,958 | ) | (243,768 | ) | (7,630 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | (10,181,737 | ) | (1,973,643 | ) | 374,893 | (138,450 | ) | |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net Investment Income | — | (470,418 | ) | (30,085 | ) | (119,992 | ) | |||||||||
Realized Gain on Investments | — | (3,554,938 | ) | — | — | |||||||||||
Total Distributions to Shareholders | — | (4,025,356 | ) | (30,085 | ) | (119,992 | ) | |||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 102,921,383 | 388,695,373 | 60,317,135 | 106,240,775 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | — | 4,025,356 | 30,085 | 119,992 | ||||||||||||
Cost of Shares Redeemed | (107,482,610 | ) | (397,814,356 | ) | (58,908,702 | ) | (109,031,843 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | (4,561,227 | ) | (5,093,627 | ) | 1,438,518 | (2,671,076 | ) | |||||||||
Net Increase (Decrease) in Net Assets | (14,742,964 | ) | (11,092,626 | ) | 1,783,326 | (2,929,518 | ) | |||||||||
Net Assets—Beginning of Period | 27,893,318 | 38,985,944 | 3,029,216 | 5,958,734 | ||||||||||||
Net Assets—End of Period | $ | 13,150,354 | $ | 27,893,318 | $ | 4,812,542 | $ | 3,029,216 | ||||||||
Undistributed Net Investment Income—End of Period | $ | 13,700 | $ | — | $ | — | $ | 18,025 | ||||||||
128 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Russell 2000® | Russell 2000® | Inverse Russell 2000® | Government Long Bond | |||||||||||||||||||||||||||||
2x Strategy Fund | 1.5x Strategy Fund | Strategy Fund | 1.2x Strategy Fund | |||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
$ | 2,245 | $ | 54,693 | $ | 7,455 | $ | 405,819 | $ | 24,887 | $ | 344,137 | $ | 1,614,871 | $ | 1,898,755 | |||||||||||||||||
(4,069,001 | ) | (987,631 | ) | (10,189,988 | ) | (156,131 | ) | 1,985,466 | 286,881 | 15,787,577 | 1,053,605 | |||||||||||||||||||||
39,813 | 42,780 | (57,299 | ) | (3,591,433 | ) | (258,727 | ) | (92,722 | ) | 9,919,553 | 1,248,169 | |||||||||||||||||||||
(4,026,943 | ) | (890,158 | ) | (10,239,832 | ) | (3,341,745 | ) | 1,751,626 | 538,296 | 27,322,001 | 4,200,529 | |||||||||||||||||||||
(54,736 | ) | (1,234 | ) | (24,991 | ) | (459,551 | ) | (77,668 | ) | (382,872 | ) | (1,614,871 | ) | (1,898,770 | ) | |||||||||||||||||
— | (55,803 | ) | — | (1,542,506 | ) | — | — | — | — | |||||||||||||||||||||||
(54,736 | ) | (57,037 | ) | (24,991 | ) | (2,002,057 | ) | (77,668 | ) | (382,872 | ) | (1,614,871 | ) | (1,898,770 | ) | |||||||||||||||||
66,696,125 | 51,531,314 | 228,443,245 | 367,099,100 | 245,228,300 | 207,784,835 | 474,352,681 | 463,570,772 | |||||||||||||||||||||||||
54,736 | 57,037 | 24,991 | 2,002,057 | 77,668 | 382,872 | 1,614,871 | 1,898,770 | |||||||||||||||||||||||||
(65,452,310 | ) | (49,020,342 | ) | (226,104,575 | ) | (414,989,632 | ) | (250,736,749 | ) | (209,025,910 | ) | (490,330,030 | ) | (465,941,934 | ) | |||||||||||||||||
1,298,551 | 2,568,009 | 2,363,661 | (45,888,475 | ) | (5,430,781 | ) | (858,203 | ) | (14,362,478 | ) | (472,392 | ) | ||||||||||||||||||||
(2,783,128 | ) | 1,620,814 | (7,901,162 | ) | (51,232,277 | ) | (3,756,823 | ) | (702,779 | ) | 11,344,652 | 1,829,367 | ||||||||||||||||||||
6,204,604 | 4,583,790 | 21,879,489 | 73,111,766 | 11,534,667 | 12,237,446 | 52,249,557 | 50,420,190 | |||||||||||||||||||||||||
$ | 3,421,476 | $ | 6,204,604 | $ | 13,978,327 | $ | 21,879,489 | $ | 7,777,844 | $ | 11,534,667 | $ | 63,594,209 | $ | 52,249,557 | |||||||||||||||||
$ | 2,386 | $ | 54,736 | $ | 7,619 | $ | 24,990 | $ | — | $ | 44,246 | $ | — | $ | — | |||||||||||||||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 129
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Inverse Government | Europe | |||||||||||||||
Long Bond Strategy Fund | 1.25x Strategy Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income (Loss) | $ | (181,920 | ) | $ | 652,342 | $ | 714,958 | $ | 1,851,030 | |||||||
Net Realized Gain (Loss) on Investments | (4,483,885 | ) | (1,973,476 | ) | (16,143,193 | ) | 2,171,852 | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 211,755 | (827,112 | ) | (5,799,986 | ) | 1,011,109 | ||||||||||
Net Increase (Decrease) in Net Assets from Operations | (4,454,050 | ) | (2,148,246 | ) | (21,228,221 | ) | 5,033,991 | |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net Investment Income | (57,414 | ) | (725,228 | ) | (154,314 | ) | (1,982,475 | ) | ||||||||
Realized Gain on Investments | — | — | (496,316 | ) | (8,037,155 | ) | ||||||||||
Total Distributions to Shareholders | (57,414 | ) | (725,228 | ) | (650,630 | ) | (10,019,630 | ) | ||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 319,401,142 | 178,977,020 | 79,201,238 | 219,995,801 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 57,414 | 725,228 | 650,630 | 10,019,630 | ||||||||||||
Cost of Shares Redeemed | (321,933,649 | ) | (188,463,694 | ) | (128,270,198 | ) | (231,687,377 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | (2,475,093 | ) | (8,761,446 | ) | (48,418,330 | ) | (1,671,946 | ) | ||||||||
Net Increase (Decrease) in Net Assets | (6,986,557 | ) | (11,634,920 | ) | (70,297,181 | ) | (6,657,585 | ) | ||||||||
Net Assets—Beginning of Period | 17,611,452 | 29,246,372 | 82,832,659 | 89,490,244 | ||||||||||||
Net Assets—End of Period | $ | 10,624,895 | $ | 17,611,452 | $ | 12,535,478 | $ | 82,832,659 | ||||||||
Undistributed Net Investment Income—End of Period | $ | — | $ | 57,414 | $ | 517,214 | $ | 154,313 | ||||||||
130 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Japan | Dow | Inverse Dow | Small-Cap | |||||||||||||||||||||||||||||
1.25x Strategy Fund | 2x Strategy Fund | 2x Strategy Fund | Value Fund | |||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
$ | 31,969 | $ | 808,841 | $ | 259,851 | $ | 442,216 | $ | (6,737 | ) | $ | 580,349 | $ | 198,801 | $ | 117,534 | ||||||||||||||||
(6,666,124 | ) | (2,407,314 | ) | (20,232,026 | ) | (1,498,294 | ) | 10,429,174 | (2,623,725 | ) | (10,574,577 | ) | (875,146 | ) | ||||||||||||||||||
1,520,735 | (1,209,398 | ) | (4,158,392 | ) | (41,827 | ) | (766,102 | ) | 807,666 | (66,716 | ) | (2,300,846 | ) | |||||||||||||||||||
(5,113,420 | ) | (2,807,871 | ) | (24,130,567 | ) | (1,097,905 | ) | 9,656,335 | (1,235,710 | ) | (10,442,492 | ) | (3,058,458 | ) | ||||||||||||||||||
(76,368 | ) | (1,177,302 | ) | (405,000 | ) | (428,235 | ) | (65,614 | ) | (650,488 | ) | (117,535 | ) | (29,154 | ) | |||||||||||||||||
— | — | — | (4,564,672 | ) | (4,005,690 | ) | — | — | (2,089,925 | ) | ||||||||||||||||||||||
(76,368 | ) | (1,177,302 | ) | (405,000 | ) | (4,992,907 | ) | (4,071,304 | ) | (650,488 | ) | (117,535 | ) | (2,119,079 | ) | |||||||||||||||||
82,969,661 | 136,271,443 | 216,705,153 | 210,572,797 | 387,121,913 | 148,035,616 | 61,739,467 | 47,931,806 | |||||||||||||||||||||||||
76,368 | 1,177,302 | 405,000 | 4,992,907 | 4,071,304 | 650,488 | 117,535 | 2,119,079 | |||||||||||||||||||||||||
(80,320,566 | ) | (148,405,041 | ) | (201,051,518 | ) | (210,015,349 | ) | (396,959,455 | ) | (151,968,697 | ) | (50,696,367 | ) | (69,287,218 | ) | |||||||||||||||||
2,725,463 | (10,956,296 | ) | 16,058,635 | 5,550,355 | (5,766,238 | ) | (3,282,593 | ) | 11,160,635 | (19,236,333 | ) | |||||||||||||||||||||
(2,464,325 | ) | (14,941,469 | ) | (8,476,932 | ) | (540,457 | ) | (181,207 | ) | (5,168,791 | ) | 600,608 | (24,413,870 | ) | ||||||||||||||||||
15,568,221 | 30,509,690 | 44,824,796 | 45,365,253 | 11,884,610 | 17,053,401 | 9,709,650 | 34,123,520 | |||||||||||||||||||||||||
$ | 13,103,896 | $ | 15,568,221 | $ | 36,347,864 | $ | 44,824,796 | $ | 11,703,403 | $ | 11,884,610 | $ | 10,310,258 | $ | 9,709,650 | |||||||||||||||||
$ | 31,969 | $ | 76,368 | $ | — | $ | 136,108 | $ | — | $ | 59,582 | $ | 198,801 | $ | 117,535 | |||||||||||||||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 131
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
Mid-Cap | Large-Cap | |||||||||||||||
Value Fund | Value Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income (Loss) | $ | 266,722 | $ | 282,228 | $ | 438,407 | $ | 672,543 | ||||||||
Net Realized Gain (Loss) on Investments | (7,541,970 | ) | 1,578,360 | (11,659,693 | ) | 5,047,817 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (785,062 | ) | (2,259,896 | ) | 4,873 | (5,927,846 | ) | |||||||||
Net Increase (Decrease) in Net Assets from Operations | (8,060,310 | ) | (399,308 | ) | (11,216,413 | ) | (207,486 | ) | ||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net Investment Income | — | (366,943 | ) | (173,272 | ) | (639,172 | ) | |||||||||
Realized Gain on Investments | (1,633,526 | ) | (17,776 | ) | (2,551,427 | ) | (4,733,675 | ) | ||||||||
Total Distributions to Shareholders | (1,633,526 | ) | (384,719 | ) | (2,724,699 | ) | (5,372,847 | ) | ||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 37,059,547 | 119,801,427 | 79,752,005 | 188,096,688 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 1,633,526 | 384,719 | 2,724,699 | 5,372,847 | ||||||||||||
Cost of Shares Redeemed | (37,401,992 | ) | (131,658,649 | ) | (83,856,157 | ) | (246,412,645 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | 1,291,081 | (11,472,503 | ) | (1,379,453 | ) | (52,943,110 | ) | |||||||||
Net Increase (Decrease) in Net Assets | (8,402,755 | ) | (12,256,530 | ) | (15,320,565 | ) | (58,523,443 | ) | ||||||||
Net Assets—Beginning of Period | 15,997,792 | 28,254,322 | 24,799,284 | 83,322,727 | ||||||||||||
Net Assets—End of Period | $ | 7,595,037 | $ | 15,997,792 | $ | 9,478,719 | $ | 24,799,284 | ||||||||
Undistributed Net Investment Income—End of Period | $ | 266,722 | $ | — | $ | 438,407 | $ | 173,272 | ||||||||
132 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Small-Cap | Mid-Cap | Large-Cap | U.S. Government | |||||||||||||||||||||||||||||
Growth Fund | Growth Fund | Growth Fund | Money Market Fund | |||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
$ | (5,119 | ) | $ | (185,034 | ) | $ | (207,818 | ) | $ | (181,849 | ) | $ | (93,835 | ) | $ | (150,559 | ) | $ | 3,944,200 | $ | 10,144,753 | |||||||||||
(6,099,762 | ) | (146,038 | ) | (6,088,855 | ) | (828,789 | ) | (9,182,357 | ) | (1,379,474 | ) | 77,579 | — | |||||||||||||||||||
(281,627 | ) | (1,001,524 | ) | (3,409,958 | ) | 1,414,199 | (2,461,497 | ) | 1,634,631 | — | — | |||||||||||||||||||||
(6,386,508 | ) | (1,332,596 | ) | (9,706,631 | ) | 403,561 | (11,737,689 | ) | 104,598 | 4,021,779 | 10,144,753 | |||||||||||||||||||||
— | — | — | — | — | — | (3,944,200 | ) | (10,144,753 | ) | |||||||||||||||||||||||
— | (1,579,622 | ) | — | (2,700,731 | ) | — | (715,291 | ) | — | — | ||||||||||||||||||||||
— | (1,579,622 | ) | — | (2,700,731 | ) | — | (715,291 | ) | (3,944,200 | ) | (10,144,753 | ) | ||||||||||||||||||||
80,629,274 | 119,144,626 | 93,243,235 | 182,659,368 | 96,181,370 | 153,983,619 | 1,084,838,242 | 1,479,694,976 | |||||||||||||||||||||||||
— | 1,579,622 | — | 2,700,731 | — | 715,291 | 3,944,200 | 10,144,753 | |||||||||||||||||||||||||
(72,953,255 | ) | (128,683,642 | ) | (97,781,591 | ) | (172,563,004 | ) | (107,512,062 | ) | (141,380,688 | ) | (1,005,259,657 | ) | (1,420,642,029 | ) | |||||||||||||||||
7,676,019 | (7,959,394 | ) | (4,538,356 | ) | 12,797,095 | (11,330,692 | ) | 13,318,222 | 83,522,785 | 69,197,700 | ||||||||||||||||||||||
1,289,511 | (10,871,612 | ) | (14,244,987 | ) | 10,499,925 | (23,068,381 | ) | 12,707,529 | 83,600,364 | 69,197,700 | ||||||||||||||||||||||
12,427,964 | 23,299,576 | 25,939,708 | 15,439,783 | 36,275,146 | 23,567,617 | 277,345,537 | 208,147,837 | |||||||||||||||||||||||||
$ | 13,717,475 | $ | 12,427,964 | $ | 11,694,721 | $ | 25,939,708 | $ | 13,206,765 | $ | 36,275,146 | $ | 360,945,901 | $ | 277,345,537 | |||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,497 | $ | 7,497 | |||||||||||||||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 133
FINANCIAL HIGHLIGHTS
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.
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 | Other | (Decrease) in | VALUE, | Total | Investment | Portfolio | End of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BEGINNING | Income | Gains (Losses) | Resulting from | Investment | Realized | Return of | Total | Capital | Net Asset | END OF | Investment | Total | Income | Turnover | Period (000’s | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Capital | Distributions | Items | Value | PERIOD | Return†† | Expenses | (Loss) | Rate | omitted) | ||||||||||||||||||||||||||||||||||||||||||||||||
Nova Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 10.06 | $ | .06 | $ | (5.54 | ) | $ | (5.48 | ) | $ | (.03 | ) | $ | — | $ | — | $ | (.03 | ) | $ | — | $ | (5.51 | ) | $ | 4.55 | (54.47) | % | 1.52 | % | 0.75 | % | 182 | % | $ | 35,087 | |||||||||||||||||||||||||||
December 31, 2007 | 10.09 | .12 | — | .12 | (.15 | ) | — | — | (.15 | ) | — | (.03 | ) | 10.06 | 1.13 | % | 1.46 | % | 1.12 | % | 94 | % | 82,191 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 8.56 | .11 | 1.54 | 1.65 | (.12 | ) | — | — | (.12 | ) | — | 1.53 | 10.09 | 19.27 | % | 1.48 | % | 1.18 | % | 211 | % | 134,477 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 8.26 | .05 | .28 | .33 | (.03 | ) | — | — | (.03 | ) | — | .30 | 8.56 | 3.97 | % | 1.53 | % | 0.60 | % | 381 | % | 132,018 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 7.21 | .03 | 1.02 | 1.05 | (— | )§ | — | — | (— | )§ | — | 1.05 | 8.26 | 14.62 | % | 1.46 | % | 0.41 | % | 654 | % | 130,200 | ||||||||||||||||||||||||||||||||||||||||||
Inverse S&P 500 Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 42.21 | (.07 | ) | 16.17 | 16.10 | (.36 | ) | — | — | (.36 | ) | .49▲ | 16.23 | 58.44 | 39.25 | % | 1.67 | % | (0.14) | % | — | 23,877 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 43.90 | 1.35 | (1.00 | ) | .35 | (2.04 | ) | — | — | (2.04 | ) | — | (1.69 | ) | 42.21 | 0.83 | % | 1.63 | % | 3.04 | % | — | 21,581 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2006††† | 51.50 | 1.70 | (5.60 | ) | (3.90 | ) | (3.70 | ) | — | — | (3.70 | ) | — | (7.60 | ) | 43.90 | (7.50) | % | 1.63 | % | 3.29 | % | — | 19,025 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2005††† | 51.90 | .80 | (1.20 | ) | (.40 | ) | — | — | — | — | — | (.40 | ) | 51.50 | (0.77) | % | 1.70 | % | 1.46 | % | — | 32,505 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2004††† | 57.70 | (.20 | ) | (5.60 | ) | (5.80 | ) | — | — | — | — | — | (5.80 | ) | 51.90 | (10.05) | % | 1.62 | % | (0.28) | % | — | 19,076 | |||||||||||||||||||||||||||||||||||||||||
NASDAQ-100® Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 18.12 | (.09 | ) | (7.51 | ) | (7.60 | ) | (.02 | ) | — | — | (.02 | ) | — | (7.62 | ) | 10.50 | (41.91) | % | 1.55 | % | (0.62) | % | 107 | % | 32,986 | ||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 15.39 | .03 | 2.71 | 2.74 | (.01 | ) | — | — | (.01 | ) | — | 2.73 | 18.12 | 17.82 | % | 1.51 | % | 0.18 | % | 110 | % | 82,492 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 14.55 | (.07 | ) | .91 | .84 | — | — | — | — | — | .84 | 15.39 | 5.77 | % | 1.49 | % | (0.50) | % | 152 | % | 72,871 | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 14.39 | (.09 | ) | .25 | .16 | — | — | — | — | — | .16 | 14.55 | 1.11 | % | 1.50 | % | (0.68) | % | 294 | % | 102,487 | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 13.16 | (.02 | ) | 1.25 | 1.23 | — | — | — | — | — | 1.23 | 14.39 | 9.35 | % | 1.47 | % | (0.17) | % | 418 | % | 191,476 | |||||||||||||||||||||||||||||||||||||||||||
Inverse NASDAQ-100® Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 16.99 | .02 | 8.13 | 8.15 | (.09 | ) | — | — | (.09 | ) | — | 8.06 | 25.05 | 47.96 | % | 1.70 | % | 0.08 | % | — | 12,127 | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 19.79 | .64 | 2.87 | (2.23 | ) | (.57 | ) | — | — | (.57 | ) | — | (2.80 | ) | 16.99 | (11.28) | % | 1.68 | % | 3.40 | % | — | 13,640 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 21.51 | .74 | (1.07 | ) | (.33 | ) | (1.39 | ) | — | — | (1.39 | ) | — | (1.72 | ) | 19.79 | (1.40) | % | 1.64 | % | 3.35 | % | — | 23,929 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 21.24 | .33 | (.06 | ) | .27 | — | — | — | — | — | .27 | 21.51 | 1.27 | % | 1.63 | % | 1.49 | % | — | 19,648 | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 24.09 | (.08 | ) | (2.77 | ) | (2.85 | ) | — | — | — | — | — | (2.85 | ) | 21.24 | (11.83) | % | 1.64 | % | (0.35) | % | — | 23,928 | |||||||||||||||||||||||||||||||||||||||||
S&P 500 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 19.24 | .07 | (13.15 | ) | (13.08 | ) | — | — | — | — | — | (13.08 | ) | 6.16 | (67.98) | % | 1.67 | % | 0.56 | % | 305 | % | 26,513 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 21.71 | .26 | (.08 | ) | .18 | (.23 | ) | (2.42 | ) | — | (2.65 | ) | — | (2.47 | ) | 19.24 | 0.61 | % | 1.62 | % | 1.12 | % | 104 | % | 36,429 | |||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 18.37 | .23 | 4.12 | 4.35 | (.20 | ) | (.81 | ) | — | (1.01 | ) | — | 3.34 | 21.71 | 23.70 | % | 1.64 | % | 1.13 | % | 168 | % | 37,663 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 19.83 | .10 | .53 | .63 | (.02 | ) | (2.07 | ) | — | (2.09 | ) | — | (1.46 | ) | 18.37 | 3.38 | % | 1.65 | % | 0.55 | % | 585 | % | 25,397 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 21.59 | .02 | 2.98 | 3.00 | — | (4.76 | ) | — | (4.76 | ) | — | (1.76 | ) | 19.83 | 16.90 | % | 1.65 | % | 0.09 | % | 974 | % | 29,053 | |||||||||||||||||||||||||||||||||||||||||
NASDAQ-100® 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 29.98 | (.10 | ) | (21.66 | ) | (21.76 | ) | (.02 | ) | — | — | (.02 | ) | — | (21.78 | ) | 8.20 | (72.60) | % | 1.72 | % | (0.53) | % | 175 | % | 23,347 | ||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 23.46 | .13 | 6.49 | 6.62 | (.10 | ) | — | — | (.10 | ) | — | 6.52 | 29.98 | 28.20 | % | 1.66 | % | 0.45 | % | 203 | % | 65,069 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 22.39 | .03 | 1.06 | 1.09 | (.02 | ) | — | — | (.02 | ) | — | 1.07 | 23.46 | 4.86 | % | 1.65 | % | 0.14 | % | 250 | % | 29,673 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 23.09 | (.09 | ) | (.61 | ) | (.70 | ) | — | — | — | — | — | (.70 | ) | 22.39 | (3.03) | % | 1.65 | % | (0.42) | % | 343 | % | 44,313 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 21.73 | (.06 | ) | 2.76 | 2.70 | (.97 | ) | (.06 | ) | (.31 | ) | (1.34 | ) | — | 1.36 | 23.09 | 14.21 | % | 1.65 | % | (0.29) | % | 662 | % | 57,599 | |||||||||||||||||||||||||||||||||||||||
Mid-Cap 1.5x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 21.72 | .01 | (11.92 | ) | (11.91 | ) | — | — | — | — | — | (11.91 | ) | 9.81 | (54.83) | % | 1.66 | % | 0.07 | % | 163 | % | 13,150 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 24.20 | .28 | .65 | .93 | (.40 | ) | (3.01 | ) | — | (3.41 | ) | — | (2.48 | ) | 21.72 | 3.60 | % | 1.64 | % | 1.05 | % | 368 | % | 27,893 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 30.15 | .11 | 3.23 | 3.34 | (.13 | ) | (9.16 | ) | — | (9.29 | ) | — | (5.95 | ) | 24.20 | 10.46 | % | 1.64 | % | 0.34 | % | 478 | % | 38,986 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 26.50 | (.02 | ) | 3.75 | 3.73 | — | (.08 | ) | — | (.08 | ) | — | 3.65 | 30.15 | 14.07 | % | 1.65 | % | (0.05) | % | 573 | % | 51,197 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 24.74 | (.09 | ) | 4.96 | 4.87 | — | (3.11 | ) | — | (3.11 | ) | — | 1.76 | 26.50 | 22.14 | % | 1.64 | % | (0.37) | % | 866 | % | 34,162 |
134 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued)
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.
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 | Operating | Income | Turnover | Period (000’s | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Distributions | Value | PERIOD | Return†† | Expenses | Expenses | (Loss) | Rate | omitted) | |||||||||||||||||||||||||||||||||||||||||||||
Inverse Mid-Cap Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 35.03 | $ | .05 | $ | 12.04 | $ | 12.09 | $ | (.32 | ) | $ | — | $ | (.32 | ) | $ | 11.77 | $ | 46.80 | 34.42 | % | 1.67 | % | 1.67 | % | 0.12 | % | — | $ | 4,813 | |||||||||||||||||||||||||||||
December 31, 2007 | 36.96 | 1.06 | (1.81 | ) | (.75 | ) | (1.18 | ) | — | (1.18 | ) | (1.93 | ) | 35.03 | (1.98 | )% | 1.67 | % | 1.67 | % | 3.04 | % | — | 3,029 | ||||||||||||||||||||||||||||||||||||
December 31, 2006 | 39.15 | 1.32 | (2.83 | ) | (1.51 | ) | (.68 | ) | — | (.68 | ) | (2.19 | ) | 36.96 | (3.83 | )% | 1.65 | % | 1.65 | % | 3.49 | % | — | 5,959 | ||||||||||||||||||||||||||||||||||||
December 31, 2005 | 44.03 | .70 | (4.31 | ) | (3.61 | ) | (1.27 | ) | — | (1.27 | ) | (4.88 | ) | 39.15 | (8.16 | )% | 1.64 | % | 1.64 | % | 1.65 | % | — | 2,846 | ||||||||||||||||||||||||||||||||||||
December 31, 2004* | 50.00 | (.06 | ) | (5.91 | ) | (5.97 | ) | — | — | — | (5.97 | ) | 44.03 | (11.94 | )% | 1.62 | %** | 1.62 | %** | (0.17 | )%** | — | 1,319 | |||||||||||||||||||||||||||||||||||||
Russell 2000® 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 22.43 | .01 | (14.89 | ) | (14.88 | ) | (.18 | ) | — | (.18 | ) | (15.06 | ) | 7.37 | (66.18 | )% | 1.68 | % | 1.68 | % | 0.06 | % | 347 | % | 3,421 | |||||||||||||||||||||||||||||||||||
December 31, 2007 | 25.97 | .25 | (3.52 | ) | (3.27 | ) | (.01 | ) | (.26 | ) | (.27 | ) | (3.54 | ) | 22.43 | (12.59 | )% | 1.64 | % | 1.64 | % | 0.95 | % | 174 | % | 6,205 | ||||||||||||||||||||||||||||||||||
December 31, 2006* | 25.00 | .05 | .96 | 1.01 | (.04 | ) | — | (.04 | ) | .97 | 25.97 | 4.06 | % | 1.64 | %** | 1.64 | %** | 1.02 | %** | 60 | % | 4,584 | ||||||||||||||||||||||||||||||||||||||
Russell 2000® 1.5x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 34.20 | .01 | (17.58 | ) | (17.57 | ) | (.06 | ) | — | (.06 | ) | (17.63 | ) | 16.57 | (51.36 | )% | 1.68 | % | 1.68 | % | 0.05 | % | 490 | % | 13,978 | |||||||||||||||||||||||||||||||||||
December 31, 2007 | 41.14 | .49 | (3.26 | ) | (2.77 | ) | (.96 | ) | (3.21 | ) | (4.17 | ) | (6.94 | ) | 34.20 | (6.74 | )% | 1.66 | % | 1.66 | % | 1.16 | % | 354 | % | 21,879 | ||||||||||||||||||||||||||||||||||
December 31, 2006 | 34.14 | .19 | 6.93 | 7.12 | (.12 | ) | — | (.12 | ) | 7.00 | 41.14 | 20.85 | % | 1.64 | % | 1.64 | % | 0.49 | % | 380 | % | 73,112 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 33.65 | .01 | 1.31 | 1.32 | (.83 | ) | — | (.83 | ) | .49 | 34.14 | 3.91 | % | 1.63 | % | 1.63 | % | 0.04 | % | 404 | % | 38,589 | ||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 29.75 | (.10 | ) | 6.95 | 6.85 | — | (2.95 | ) | (2.95 | ) | 3.90 | 33.65 | 25.20 | % | 1.65 | % | 1.65 | % | (0.32 | )% | 1,171 | % | 112,649 | |||||||||||||||||||||||||||||||||||||
Inverse Russell 2000® Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 34.66 | .08 | 8.54 | 8.62 | (.58 | ) | — | (.58 | ) | 8.04 | 42.70 | 24.69 | % | 1.69 | % | 1.69 | % | 0.22 | % | — | 7,778 | |||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 34.61 | 1.10 | .76 | 1.86 | (1.81 | ) | — | (1.81 | ) | .05 | 34.66 | 5.37 | % | 1.67 | % | 1.67 | % | 3.19 | % | — | 11,535 | |||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 40.60 | 1.30 | (6.16 | ) | (4.86 | ) | (1.13 | ) | — | (1.13 | ) | (5.99 | ) | 34.61 | (11.95 | )% | 1.64 | % | 1.64 | % | 3.48 | % | — | 12,237 | ||||||||||||||||||||||||||||||||||||
December 31, 2005 | 42.83 | .65 | (1.98 | ) | (1.33 | ) | (.90 | ) | — | (.90 | ) | (2.23 | ) | 40.60 | (3.07 | )% | 1.63 | % | 1.63 | % | 1.49 | % | — | 11,850 | ||||||||||||||||||||||||||||||||||||
December 31, 2004* | 50.00 | (.10 | ) | (7.07 | ) | (7.17 | ) | — | — | — | (7.17 | ) | 42.83 | (14.34 | )% | 1.65 | %** | 1.65 | %** | (0.29 | )%** | — | 4,344 | |||||||||||||||||||||||||||||||||||||
Government Long Bond 1.2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 12.24 | .35 | 5.00 | 5.35 | (.35 | ) | — | (.35 | ) | 5.00 | 17.24 | 44.87 | % | 1.22 | % | 1.22 | % | 2.75 | % | 1,372 | % | 63,594 | ||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 11.56 | .41 | .68 | 1.09 | (.41 | ) | — | (.41 | ) | .68 | 12.24 | 9.77 | % | 1.20 | % | 1.20 | % | 3.60 | % | 1,367 | % | 52,250 | ||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 12.38 | .42 | (.82 | ) | (.40 | ) | (.42 | ) | — | (.42 | ) | (.82 | ) | 11.56 | (3.14 | )% | 1.20 | % | 1.20 | % | 3.66 | % | 1,339 | % | 50,420 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 11.88 | .41 | .50 | .91 | (.41 | ) | — | (.41 | ) | .50 | 12.38 | 7.71 | % | 1.18 | % | 1.18 | % | 3.30 | % | 1,284 | % | 60,160 | ||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 11.67 | .40 | .54 | .94 | (.40 | ) | (.33 | ) | (.73 | ) | .21 | 11.88 | 8.42 | % | 1.21 | % | 1.21 | % | 3.36 | % | 1,318 | % | 48,709 | |||||||||||||||||||||||||||||||||||||
Inverse Government Long Bond Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 19.58 | (.21 | ) | (5.68 | ) | (5.89 | ) | (.09 | ) | — | (.09 | ) | (5.98 | ) | 13.60 | (30.21 | )% | 4.12 | % | 1.65 | %à | (1.12 | )% | 2,851 | % | 10,625 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 21.55 | .70 | (1.67 | ) | (.97 | ) | (1.00 | ) | — | (1.00 | ) | (1.97 | ) | 19.58 | (4.51 | )% | 3.83 | % | 1.63 | %à | 3.17 | % | 1,123 | % | 17,611 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 20.80 | .69 | .97 | 1.66 | (.91 | ) | — | (.91 | ) | .75 | 21.55 | 8.11 | % | 5.12 | % | 1.63 | %à | 3.08 | % | 597 | % | 29,246 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 21.95 | (.07 | ) | (1.08 | ) | (1.15 | ) | — | — | — | (1.15 | ) | 20.80 | (5.24 | )% | 5.11 | % | 1.63 | %à | (0.33 | )% | 589 | % | 29,671 | ||||||||||||||||||||||||||||||||||||
December 31, 2004 | 24.82 | (.66 | ) | (1.98 | ) | (2.64 | ) | — | (.23 | ) | (.23 | ) | (2.87 | ) | 21.95 | (10.67 | )% | 5.02 | % | 1.63 | %à | (2.86 | )% | — | 41,098 | |||||||||||||||||||||||||||||||||||
Europe 1.25x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 29.95 | .55 | (17.04 | ) | (16.49 | ) | (.19 | ) | (.62 | ) | (.81 | ) | (17.30 | ) | 12.65 | (54.86 | )% | 1.67 | % | 1.67 | % | 2.33 | % | 111 | % | 12,535 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 29.60 | .70 | 3.26 | 3.96 | (.71 | ) | (2.90 | ) | (3.61 | ) | .35 | 29.95 | 13.06 | % | 1.63 | % | 1.63 | % | 2.18 | % | 220 | % | 82,833 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 23.84 | .70 | 6.31 | 7.01 | (.48 | ) | (.77 | ) | (1.25 | ) | 5.76 | 29.60 | 29.51 | % | 1.65 | % | 1.65 | % | 2.55 | % | 219 | % | 89,490 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 22.62 | .21 | 1.23 | 1.44 | (.09 | ) | (.13 | ) | (.22 | ) | 1.22 | 23.84 | 6.36 | % | 1.63 | % | 1.63 | % | 0.94 | % | 399 | % | 25,954 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 22.87 | (.05 | ) | 3.71 | 3.66 | (3.82 | ) | (.09 | ) | (3.91 | ) | (.25 | ) | 22.62 | 16.15 | % | 1.64 | % | 1.64 | % | (0.23 | )% | — | 54,994 |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 135
FINANCIAL HIGHLIGHTS (continued)
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.
Net Increase | RATIOS TO | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized | (Decrease) | AVERAGE NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSET | Net | and | in Net Asset | Distributions | Distributions | Net Increase | NET ASSET | Net | Net Assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||
VALUE, | Investment | Unrealized | Value | from Net | from Net | Payments | (Decrease) in | VALUE, | Total | Investment | Portfolio | End of | ||||||||||||||||||||||||||||||||||||||||||||||||
BEGINNING | Income | Gains (Losses) | Resulting from | Investment | Realized | Total | by | Net Asset | END OF | Investment | Total | Income | Turnover | Period (000’s | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Distributions | Affiliates | Value | PERIOD | Return†† | Expenses | (Loss) | Rate | omitted) | |||||||||||||||||||||||||||||||||||||||||||||
Japan 1.25x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 22.73 | $ | .05 | $ | (7.86 | ) | $ | (7.81 | ) | $ | (.13 | ) | $ | — | $ | (.13 | ) | $ | .29■ | $ | (7.65 | ) | $ | 15.08 | (32.97 | )% | 1.65 | % | 0.25 | % | — | $ | 13,104 | ||||||||||||||||||||||||||
December 31, 2007 | 27.13 | .88 | (3.83 | ) | (2.95 | ) | (1.45 | ) | — | (1.45 | ) | — | (4.40 | ) | 22.73 | (11.23 | )% | 1.64 | % | 3.32 | % | — | 15,568 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 33.42 | 1.02 | .50 | 1.52 | (1.29 | ) | (6.52 | ) | (7.81 | ) | — | (6.29 | ) | 27.13 | 5.14 | % | 1.63 | % | 2.99 | % | — | 30,510 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 27.77 | .48 | 5.17 | 5.65 | — | — | — | — | 5.65 | 33.42 | 20.35 | % | 1.70 | % | 1.72 | % | — | 55,219 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 25.17 | (.14 | ) | 2.74 | 2.60 | — | — | — | — | 2.60 | 27.77 | 10.33 | % | 1.63 | % | (0.50 | )% | — | 14,228 | |||||||||||||||||||||||||||||||||||||||||
Dow 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 25.70 | .15 | (16.02 | ) | (15.87 | ) | (.18 | ) | — | (.18 | ) | — | (16.05 | ) | 9.65 | (61.71 | )% | 1.68 | % | 0.90 | % | 78 | % | 36,348 | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | 26.89 | .36 | 1.93 | 2.29 | (.30 | ) | (3.18 | ) | (3.48 | ) | — | (1.19 | ) | 25.70 | 8.15 | % | 1.63 | % | 1.22 | % | 105 | % | 44,825 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 23.10 | .40 | 6.58 | 6.98 | (.15 | ) | (3.04 | ) | (3.19 | ) | — | 3.79 | 26.89 | 30.54 | % | 1.65 | % | 1.52 | % | 224 | % | 45,365 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 25.89 | .24 | (1.25 | ) | (1.01 | ) | (.17 | ) | (1.61 | ) | (1.78 | ) | — | (2.79 | ) | 23.10 | (3.81 | )% | 1.67 | % | 1.03 | % | 666 | % | 12,920 | |||||||||||||||||||||||||||||||||||
December 31, 2004* | 25.00 | .14 | 2.03 | 2.17 | (1.16 | ) | (.12 | ) | (1.28 | ) | — | .89 | 25.89 | 8.65 | % | 1.63 | %** | 0.91 | %** | 907 | % | 10,419 | ||||||||||||||||||||||||||||||||||||||
Inverse Dow 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 28.79 | (.01 | ) | 18.12 | 18.11 | (.18 | ) | (11.11 | ) | (11.29 | ) | — | 6.82 | 35.61 | 60.84 | % | 1.69 | % | (0.03 | )% | — | 11,703 | ||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 33.34 | 1.02 | (4.06 | ) | (3.04 | ) | (1.51 | ) | — | (1.51 | ) | — | (4.55 | ) | 28.79 | (8.99 | )% | 1.66 | % | 3.36 | % | — | 11,885 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 43.20 | 1.35 | (10.75 | ) | (9.40 | ) | (.46 | ) | — | (.46 | ) | — | (9.86 | ) | 33.34 | (21.77 | )% | 1.64 | % | 3.61 | % | — | 17,053 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 43.22 | .74 | (.06 | ) | .68 | (.70 | ) | — | (.70 | ) | — | (.02 | ) | 43.20 | 1.63 | % | 1.65 | % | 1.67 | % | — | 7,257 | ||||||||||||||||||||||||||||||||||||||
December 31, 2004* | 50.00 | (.03 | ) | (5.71 | ) | (5.74 | ) | — | (1.04 | ) | (1.04 | ) | — | (6.78 | ) | 43.22 | (11.47 | )% | 1.62 | %** | (0.09 | )%** | — | 3,184 | ||||||||||||||||||||||||||||||||||||
Small-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 18.22 | .24 | (8.17 | ) | (7.93 | ) | (.12 | ) | — | (.12 | ) | — | (8.05 | ) | 10.17 | (43.50 | )% | 1.52 | % | 1.60 | % | 391 | % | 10,310 | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | 28.60 | .19 | (5.97 | ) | (5.78 | ) | (.06 | ) | (4.54 | ) | (4.60 | ) | — | (10.38 | ) | 18.22 | (20.36 | )% | 1.49 | % | 0.66 | % | 241 | % | 9,710 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 25.67 | .18 | 4.74 | 4.92 | (.17 | ) | (1.82 | ) | (1.99 | ) | — | 2.93 | 28.60 | 19.21 | % | 1.49 | % | 0.64 | % | 433 | % | 34,124 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 28.84 | (.05 | ) | 1.13 | 1.08 | — | (4.25 | ) | (4.25 | ) | — | (3.17 | ) | 25.67 | 3.64 | % | 1.47 | % | (0.16 | )% | 825 | % | 19,035 | |||||||||||||||||||||||||||||||||||||
December 31, 2004* | 25.00 | .01 | 4.50 | 4.51 | (.01 | ) | (.66 | ) | (.67 | ) | — | 3.84 | 28.84 | 18.03 | % | 1.46 | %** | 0.07 | %** | 507 | % | 47,274 | ||||||||||||||||||||||||||||||||||||||
Mid-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 20.84 | .35 | (9.57 | ) | (9.22 | ) | — | (2.93 | ) | (2.93 | ) | — | (12.15 | ) | 8.69 | (43.63 | )% | 1.51 | % | 2.06 | % | 255 | % | 7,595 | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | 22.38 | .21 | (1.29 | ) | (1.08 | ) | (.44 | ) | (.02 | ) | (.46 | ) | — | (1.54 | ) | 20.84 | (4.85 | )% | 1.49 | % | 0.87 | % | 358 | % | 15,998 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 19.27 | .28 | 3.01 | 3.29 | (.18 | ) | — | (.18 | ) | — | 3.11 | 22.38 | 17.08 | % | 1.49 | % | 1.37 | % | 307 | % | 28,254 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 27.08 | .07 | 2.28 | 2.35 | (.20 | ) | (9.96 | ) | (10.16 | ) | — | (7.81 | ) | 19.27 | 8.32 | % | 1.48 | % | 0.26 | % | 1,133 | % | 14,232 | |||||||||||||||||||||||||||||||||||||
December 31, 2004* | 25.00 | — | 3.80 | 3.80 | —§ | (1.72 | ) | (1.72 | ) | — | 2.08 | 27.08 | 15.20 | % | 1.48 | %** | 0.01 | %** | 1,173 | % | 19,479 | |||||||||||||||||||||||||||||||||||||||
Large-Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 25.37 | .47 | (13.01 | ) | (12.54 | ) | (.23 | ) | (3.44 | ) | (3.67 | ) | — | (16.21 | ) | 9.16 | (48.65 | )% | 1.51 | % | 2.42 | % | 389 | % | 9,479 | |||||||||||||||||||||||||||||||||||
December 31, 2007 | 31.78 | .42 | (2.03 | ) | (1.61 | ) | (.57 | ) | (4.23 | ) | (4.80 | ) | — | (6.41 | ) | 25.37 | (5.37 | )% | 1.49 | % | 1.28 | % | 307 | % | 24,799 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 27.90 | .39 | 4.53 | 4.92 | (.25 | ) | (.79 | ) | (1.04 | ) | — | 3.88 | 31.78 | 17.66 | % | 1.50 | % | 1.29 | % | 401 | % | 83,323 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 27.68 | .21 | .95 | 1.16 | (.15 | ) | (.79 | ) | (.94 | ) | — | .22 | 27.90 | 4.19 | % | 1.50 | % | 0.77 | % | 493 | % | 24,547 | ||||||||||||||||||||||||||||||||||||||
December 31, 2004* | 25.00 | .12 | 3.00 | 3.12 | (.11 | ) | (.33 | ) | (.44 | ) | — | 2.68 | 27.68 | 12.49 | % | 1.45 | %** | 0.69 | %** | 983 | % | 11,144 | ||||||||||||||||||||||||||||||||||||||
Small-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 27.07 | (.01 | ) | (9.28 | ) | (9.29 | ) | — | — | — | — | (9.29 | ) | 17.78 | (34.32 | )% | 1.52 | % | (0.04 | )% | 465 | % | 13,717 | |||||||||||||||||||||||||||||||||||||
December 31, 2007 | 29.92 | (.28 | ) | .30 | .02 | — | (2.87 | ) | (2.87 | ) | — | (2.85 | ) | 27.07 | (0.11 | )% | 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 | % | (1.01 | )% | 769 | % | 23,300 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 28.55 | (.21 | ) | 2.00 | 1.79 | — | (1.70 | ) | (1.70 | ) | — | .09 | 28.64 | 6.20 | % | 1.50 | % | (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 | %** | (0.93 | )%** | 733 | % | 30,269 |
136 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (concluded)
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.
Net Increase | RATIOS TO | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized | (Decrease) | AVERAGE NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | Turnover | Period (000’s | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Distributions | Value | PERIOD | Return†† | Expenses | Expenses | (Loss) | Rate | omitted) | |||||||||||||||||||||||||||||||||||||||||||||
Mid-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 29.51 | $ | (.24 | ) | $ | (10.42 | ) | $ | (10.66 | ) | $ | — | $ | — | $ | — | $ | (10.66 | ) | $ | 18.85 | (36.12) | % | 1.51 | % | 1.51 | % | (0.89) | % | 381 | % | $ | 11,695 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||
Large-Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 27.36 | (.09 | ) | (10.80 | ) | (10.89 | ) | — | — | — | (10.89 | ) | 16.47 | (39.80) | % | 1.51 | % | 1.51 | % | (0.40) | % | 360 | % | 13,207 | ||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
U.S. Government Money Market Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 1.00 | .01 | — | .01 | (.01 | ) | — | (.01 | ) | — | 1.00 | 1.14 | % | 1.22 | % | 1.22 | % | 1.09 | % | — | 360,946 | |||||||||||||||||||||||||||||||||||||||
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 |
* | Since the commencement of operations: 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 period. | |
†† | 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, 2004 — December 31, 2006 were restated to reflect a 1:10 reverse stock split effective April 23, 2007. | |
§ | Less than $.01 per share. | |
à | Operating Expenses exclude interest expense from securities sold short. | |
▲ | Excluding the capital contribution, the Fund’s total return would have been 38.09%. | |
n | Excluding the reimbursement, the Fund’s total return would have been (34.25)%. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 137
NOTES TO FINANCIAL STATEMENTS
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 no par value shares. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.
At December 31, 2008, the Trust consisted of fifty-eight separate funds. This report covers the Benchmark and the Money Market Funds (the “Funds”), while the other 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 and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. 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. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.
Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, as of 4:00 p.m. Long options are valued using the bid price and short options are valued using the ask price. In the event that a settlement price is not available, fair valuation is enacted. Over-the-counter options held by the Trust are valued using the average bid price (for long options), or average ask price (for short options) 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 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.
The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act.
Debt securities in a non 2a-7 money market fund with a maturity greater than 60 days are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a security is valued at the reported bid price, at the close of business. Short-term securities with a maturity of 60 days or less are valued at amortized cost, which approximates market value.
Open-ended investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, 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. 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. 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
138 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
1
NOTES TO FINANCIAL STATEMENTS (continued)
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. Taxable non-cash dividends are recorded as dividend income. 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. Net investment income is computed and dividends are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Income dividends in these Funds are accrued daily. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income in the remaining Funds and distributions of net realized gains in all Funds 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. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.
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 over-the-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 RYDEX VARIABLE TRUST ANNUAL REPORT | 139
2
NOTES TO FINANCIAL STATEMENTS (continued)
H. 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.
I. 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.
J. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the discount rates paid 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, U.S. Government securities, and enter into repurchase agreements.
K. 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.
L. 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, 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 the 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 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
140 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
3
NOTES TO FINANCIAL STATEMENTS (continued)
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, 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 counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The trust monitors the counterparty credit risk.
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.
During the year ended December 31, 2008, Rydex Investments reimbursed the Japan 1.25x Strategy Fund related to estimated losses on amounts receivable from Lehman Brothers Finance S.A. and certain of its affiliates.
On July 29, 2008, the Advisor voluntarily made a capital contribution to Inverse S&P 500 Strategy Fund to eliminate the tracking deviation from the Index.
Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.
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.
Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-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 (fiscal years 2005 — 2008), and has concluded that no provision for income tax is required in the Funds’ financial statements.
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 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. 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 RYDEX VARIABLE TRUST ANNUAL REPORT | 141
4
NOTES TO FINANCIAL STATEMENTS (continued)
The Fund’s tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended December 31, 2008, the following Funds expired or offset net realized capital gains with capital losses from previous years:
Fund | Amount | |||
Nova Fund | $ | 22,511,032 | ||
Inverse S&P 500 Strategy Fund | 23,474,772 | |||
NASDAQ-100® Fund | 65,045,522 | |||
Inverse NASDAQ-100® Strategy Fund | 8,502,802 | |||
Inverse Mid-Cap Strategy Fund | 938,294 | |||
Inverse Russell 2000® Strategy Fund | 2,265,411 | |||
Government Long Bond 1.2x Strategy Fund | 4,637,274 | |||
Inverse Dow 2x Strategy Fund | 6,651,170 | |||
U.S. Government Money Market Fund | 1,546 |
The tax character of distributions paid during the year ended December 31, 2008, was as follows:
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||
Nova Fund | $ | 223,114 | $ | — | $ | 223,114 | ||||||
Inverse S&P 500 Strategy Fund | 172,209 | — | 172,209 | |||||||||
NASDAQ-100® Fund | 77,200 | — | 77,200 | |||||||||
Inverse NASDAQ-100® Strategy Fund | 66,793 | — | 66,793 | |||||||||
S&P500 2x Strategy Fund | — | — | — | |||||||||
NASDAQ-100® 2x Strategy Fund | 42,494 | — | 42,494 | |||||||||
Mid-Cap 1.5x Strategy Fund | — | — | — | |||||||||
Inverse Mid-Cap Strategy Fund | 30,085 | — | 30,085 | |||||||||
Russell 2000® 2x Strategy Fund | 54,736 | — | 54,736 | |||||||||
Russell 2000® 1.5x Strategy Fund | 24,991 | — | 24,991 | |||||||||
Inverse Russell 2000® Strategy Fund | 77,668 | — | 77,668 | |||||||||
Government Long Bond 1.2x Strategy Fund | 1,614,871 | — | 1,614,871 | |||||||||
Inverse Government Long Bond Strategy Fund | 57,414 | — | 57,414 | |||||||||
Europe 1.25x Strategy Fund | 396,212 | 254,418 | 650,630 | |||||||||
Japan 1.25x Strategy Fund | 76,368 | — | 76,368 | |||||||||
Dow 2x Strategy Fund | 405,000 | — | 405,000 | |||||||||
Inverse Dow 2x Strategy Fund | 834,289 | 3,237,015 | 4,071,304 | |||||||||
Small-Cap Value Fund | 117,535 | — | 117,535 | |||||||||
Mid-Cap Value Fund | 177,210 | 1,456,316 | 1,633,526 | |||||||||
Large-Cap Value Fund | 173,272 | 2,551,427 | 2,724,699 | |||||||||
Small-Cap Growth Fund | — | — | — | |||||||||
Mid-Cap Growth Fund | — | — | — | |||||||||
Large-Cap Growth Fund | — | — | — | |||||||||
U.S. Government Money Market Fund | 3,944,200 | — | 3,944,200 |
142 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the year ended December 31, 2007, was as follows:
Ordinary | Long-Term | Return of | Total | |||||||||||||
Fund | Income | Capital Gain | Capital | Distributions | ||||||||||||
Nova Fund | $ | 1,161,348 | $ | — | $ | — | $ | 1,161,348 | ||||||||
Inverse S&P 500 Strategy Fund | 767,870 | — | — | 767,870 | ||||||||||||
NASDAQ-100® Fund | 63,168 | — | — | 63,168 | ||||||||||||
Inverse NASDAQ-100® Strategy Fund | 906,240 | — | — | 906,240 | ||||||||||||
S&P 500 2x Strategy Fund | 2,666,050 | 622,608 | 851,687 | 4,140,345 | ||||||||||||
NASDAQ-100® 2x Strategy Fund | 186,716 | — | — | 186,716 | ||||||||||||
Mid-Cap 1.5x Strategy Fund | 1,494,103 | 691,701 | 1,839,552 | 4,025,356 | ||||||||||||
Inverse Mid-Cap Strategy Fund | 119,992 | — | — | 119,992 | ||||||||||||
Russell 2000® 2x Strategy Fund | 57,037 | — | — | 57,037 | ||||||||||||
Russell 2000® 1.5x Strategy Fund | 459,551 | 1,542,506 | — | 2,002,057 | ||||||||||||
Inverse Russell 2000® Strategy Fund | 382,872 | — | — | 382,872 | ||||||||||||
Government Long Bond 1.2x Strategy Fund | 1,898,770 | — | — | 1,898,770 | ||||||||||||
Inverse Government Long Bond Strategy Fund | 725,228 | — | — | 725,228 | ||||||||||||
Europe 1.25x Strategy Fund | 9,030,437 | 989,193 | — | 10,019,630 | ||||||||||||
Japan 1.25x Strategy Fund | 1,177,302 | — | — | 1,177,302 | ||||||||||||
Dow 2x Strategy Fund | 4,715,887 | 277,020 | — | 4,992,907 | ||||||||||||
Inverse Dow 2x Strategy Fund | 650,488 | — | — | 650,488 | ||||||||||||
Small-Cap Value Fund | 1,261,225 | 857,854 | — | 2,119,079 | ||||||||||||
Mid-Cap Value Fund | 366,943 | 17,776 | — | 384,719 | ||||||||||||
Large-Cap Value Fund | 3,639,001 | 1,733,846 | — | 5,372,847 | ||||||||||||
Small-Cap Growth Fund | 924,827 | 654,795 | — | 1,579,622 | ||||||||||||
Mid-Cap Growth Fund | 1,416,965 | 1,250,505 | 33,261 | 2,700,731 | ||||||||||||
Large-Cap Growth Fund | 503,128 | 190,616 | 21,547 | 715,291 | ||||||||||||
U.S. Government Money Market Fund | 10,144,753 | — | — | 10,144,753 |
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows:
Undistributed | Undistributed | Net Unrealized | ||||||||||||||
Ordinary | Long-Term | Appreciation/ | Capital Loss | |||||||||||||
Fund | Income | Capital Gain | (Depreciation) | Carryforward | ||||||||||||
Nova Fund | $ | 410,874 | $ | — | $ | (8,282,353 | ) | $ | (82,081,970 | )1 | ||||||
Inverse S&P500 Strategy Fund | — | — | 54,078 | (6,957,064 | )1 | |||||||||||
NASDAQ-100® Fund | — | — | (18,890,756 | ) | (300,562,398 | )1 | ||||||||||
Inverse NASDAQ-100® Strategy Fund | 16,229 | — | 15,823 | (8,975,375 | )1 | |||||||||||
S&P500 2x Strategy Fund | 158,278 | — | (4,578,128 | ) | (25,426,896 | )1 | ||||||||||
NASDAQ-100® 2x Strategy Fund | — | — | (2,193,308 | ) | (36,475,555 | )1 | ||||||||||
Mid-Cap 1.5x Strategy Fund | 13,700 | — | (2,870,819 | ) | (8,453,446 | )1 | ||||||||||
Inverse Mid-Cap Strategy Fund | — | — | (75,791 | ) | (853,591 | )1 | ||||||||||
Russell 2000® 2x Strategy Fund | 2,452 | — | (515,294 | ) | (4,151,768 | )1 | ||||||||||
Russell 2000® 1.5x Strategy Fund | 7,792 | — | (2,322,524 | ) | (8,927,085 | )1 | ||||||||||
Inverse Russell 2000® Strategy Fund | — | — | (165,120 | ) | (5,534,622 | )1 | ||||||||||
Government Long Bond 1.2x Strategy Fund | 9,888,947 | 4,926,154 | 7,878,988 | — | ||||||||||||
Inverse Government Long Bond Strategy Fund | — | — | — | (15,079,394 | )1 | |||||||||||
Europe 1.25x Strategy Fund | 517,214 | — | (3,753,937 | ) | (14,473,305 | ) | ||||||||||
Japan 1.25x Strategy Fund | 31,969 | — | — | (8,652,666 | )1 | |||||||||||
Dow 2x Strategy Fund | — | — | (3,084,408 | ) | (21,135,557 | )1 | ||||||||||
Inverse Dow 2x Strategy Fund | — | — | 17,210 | — | ||||||||||||
Small-Cap Value Fund | 198,801 | — | (6,867,327 | ) | (1,932,476 | )1 | ||||||||||
Mid-Cap Value Fund | 266,722 | — | (4,918,193 | ) | (1,798,278 | )1 | ||||||||||
Large-Cap Value Fund | 438,407 | — | (5,729,114 | ) | (4,082,812 | )1 | ||||||||||
Small-Cap Growth Fund | — | — | (5,377,191 | ) | (1,085,308 | )1 | ||||||||||
Mid-Cap Growth Fund | — | — | (4,241,920 | ) | (3,436,260 | )1 | ||||||||||
Large-Cap Growth Fund | — | — | (7,160,616 | ) | (992,717 | )1 | ||||||||||
U.S. Government Money Market Fund | 83,527 | — | — | — |
Capital Loss Carryforward amounts may be limited due to Treasury Regulations.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 143
NOTES TO FINANCIAL STATEMENTS (continued)
1 | A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows: |
Total | ||||||||||||||||||||||||||||||||||||
Expires in | Expires in | Expires in | Expires in | Expires in | Expires in | Expires in | Expires in | Capital Loss | ||||||||||||||||||||||||||||
Fund | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Carryforward | |||||||||||||||||||||||||||
Nova Fund | $ | (40,390,472 | ) | $ | (16,542,228 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (25,149,270 | ) | $ | (82,081,970 | ) | ||||||||||||||
Inverse S&P 500 Strategy Fund | — | — | — | — | (180,775 | ) | (5,114,923 | ) | (1,661,366 | ) | — | (6,957,064 | ) | |||||||||||||||||||||||
NASDAQ-100® Fund | (180,736,125 | ) | (98,591,246 | ) | (10,118,266 | ) | (305,933 | ) | — | — | — | (10,810,828 | ) | (300,562,398 | ) | |||||||||||||||||||||
Inverse NASDAQ-100® Strategy Fund | — | — | — | — | (2,149,850 | ) | (1,494,971 | ) | (5,330,554 | ) | — | (8,975,375 | ) | |||||||||||||||||||||||
S&P 500 2x Strategy Fund | — | — | — | — | — | — | — | (25,426,896 | ) | (25,426,896 | ) | |||||||||||||||||||||||||
NASDAQ-100® 2x Strategy Fund | — | — | — | — | (798,838 | ) | — | (2,972,623 | ) | (32,704,094 | ) | (36,475,555 | ) | |||||||||||||||||||||||
Mid-Cap 1.5x Strategy Fund | — | — | — | — | — | — | (157,985 | ) | (8,295,461 | ) | (8,453,446 | ) | ||||||||||||||||||||||||
Inverse Mid-Cap Strategy Fund | — | — | — | — | — | (513,021 | ) | (340,570 | ) | — | (853,591 | ) | ||||||||||||||||||||||||
Russell 2000® 2x Strategy Fund | — | — | — | — | — | — | (683,805 | ) | (3,467,963 | ) | (4,151,768 | ) | ||||||||||||||||||||||||
Russell 2000® 1.5x Strategy Fund | — | — | — | — | — | — | (848,738 | ) | (8,078,347 | ) | (8,927,085 | ) | ||||||||||||||||||||||||
Inverse Russell 2000® Strategy Fund | — | — | — | (295,607 | ) | (955,067 | ) | (3,912,378 | ) | (371,570 | ) | — | (5,534,622 | ) | ||||||||||||||||||||||
Inverse Government Long Bond Strategy Fund | — | — | — | (5,005,075 | ) | (2,319,251 | ) | (986,005 | ) | (1,974,960 | ) | (4,794,103 | ) | (15,079,394 | ) | |||||||||||||||||||||
Europe 1.25x Strategy Fund | — | — | — | — | — | — | — | (14,473,305 | ) | (14,473,305 | ) | |||||||||||||||||||||||||
Japan 1.25x Strategy Fund | — | — | — | — | — | (429,142 | ) | (2,697,940 | ) | (5,525,584 | ) | (8,652,666 | ) | |||||||||||||||||||||||
Dow 2x Strategy Fund | — | — | — | — | — | — | — | (21,135,557 | ) | (21,135,557 | ) | |||||||||||||||||||||||||
Small-Cap Value Fund | — | — | — | — | — | — | (494,096 | ) | (1,438,380 | ) | (1,932,476 | ) | ||||||||||||||||||||||||
Mid-Cap Value Fund | — | — | — | — | — | — | — | (1,798,278 | ) | (1,798,278 | ) | |||||||||||||||||||||||||
Large-Cap Value Fund | — | — | — | — | — | — | — | (4,082,812 | ) | (4,082,812 | ) | |||||||||||||||||||||||||
Small-Cap Growth Fund | — | — | — | — | — | — | — | (1,085,308 | ) | (1,085,308 | ) | |||||||||||||||||||||||||
Mid-Cap Growth Fund | — | — | — | — | — | — | — | (3,436,260 | ) | (3,436,260 | ) | |||||||||||||||||||||||||
Large-Cap Growth Fund | — | — | — | — | — | — | — | (992,717 | ) | (992,717 | ) |
At December 31, 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:
Tax | Tax | Net | ||||||||||||||
Tax | Unrealized | Unrealized | Unrealized | |||||||||||||
Fund | Cost | Gain | Loss | Gain (Loss) | ||||||||||||
Nova Fund | $ | 44,166,870 | $ | 149,270 | $ | (8,667,560 | ) | $ | (8,518,290 | ) | ||||||
Inverse S&P 500 Strategy Fund | 18,368,681 | — | — | — | ||||||||||||
NASDAQ-100®Fund | 50,774,962 | — | (18,904,751 | ) | (18,904,751 | ) | ||||||||||
Inverse NASDAQ-100®Strategy Fund | 12,733,367 | — | — | — | ||||||||||||
S&P 500 2x Strategy Fund | 27,202,377 | — | (4,955,764 | ) | (4,955,764 | ) | ||||||||||
NASDAQ-100®2x Strategy Fund | 22,549,755 | — | (2,269,847 | ) | (2,269,847 | ) | ||||||||||
Mid-Cap 1.5x Strategy Fund | 13,648,906 | 155,402 | (3,186,129 | ) | (3,030,727 | ) | ||||||||||
Inverse Mid-Cap Strategy Fund | 4,428,644 | — | — | — | ||||||||||||
Russell 2000®2x Strategy Fund | 3,375,711 | — | (783,482 | ) | (783,482 | ) | ||||||||||
Russell 2000®1.5x Strategy Fund | 15,342,091 | — | (2,666,404 | ) | (2,666,404 | ) | ||||||||||
Inverse Russell 2000®Strategy Fund | 5,654,112 | — | — | — | ||||||||||||
Government Long Bond 1.2x Strategy Fund | 60,403,705 | 7,878,988 | — | 7,878,988 | ||||||||||||
Inverse Government Long Bond Strategy Fund | 10,487,223 | — | — | — | ||||||||||||
Europe 1.25x Strategy Fund | 16,052,047 | — | (3,951,646 | ) | (3,951,646 | ) | ||||||||||
Japan 1.25x Strategy Fund | 10,280,272 | — | — | — | ||||||||||||
Dow 2x Strategy Fund | 29,777,797 | 676,531 | (3,743,663 | ) | (3,067,132 | ) | ||||||||||
Inverse Dow 2x Strategy Fund | 8,743,354 | — | — | — | ||||||||||||
Small-Cap Value Fund | 17,422,335 | — | (6,867,327 | ) | (6,867,327 | ) | ||||||||||
Mid-Cap Value Fund | 12,455,716 | — | (4,918,193 | ) | (4,918,193 | ) | ||||||||||
Large-Cap Value Fund | 15,198,749 | — | (5,729,114 | ) | (5,729,114 | ) | ||||||||||
Small-Cap Growth Fund | 19,086,398 | — | (5,377,191 | ) | (5,377,191 | ) | ||||||||||
Mid-Cap Growth Fund | 15,864,303 | — | (4,241,920 | ) | (4,241,920 | ) | ||||||||||
Large-Cap Growth Fund | 20,387,656 | — | (7,160,616 | ) | (7,160,616 | ) | ||||||||||
U.S. Government Money Market Fund | 373,807,711 | — | — | — |
144 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
Post-October Losses Deferred
Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax year. For the year ended December 31, 2008, the following amounts of realized capital losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2009:
Fund | Capital | |||
Inverse Mid-Cap Strategy Fund | $ | (509,821 | ) | |
Russell 2000® 2x Strategy Fund | (328,309 | ) | ||
Inverse Russell 2000® Fund | (380,497 | ) | ||
Dow 2x Strategy Fund | (1,852,237 | ) | ||
Inverse Dow 2x Strategy Fund | (617,591 | ) | ||
Small-Cap Value Fund | (4,476,804 | ) | ||
Mid-Cap Value Fund | (3,796,482 | ) | ||
Large-Cap Value Fund | (3,979,397 | ) | ||
Small-Cap Growth Fund | (2,707,724 | ) | ||
Mid-Cap Growth Fund | (3,454,103 | ) | ||
Large-Cap Growth Fund | (3,539,726 | ) |
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 to ensure that its market value exceeds 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 December 31, 2008, were as follows:
Counterparty | Terms of Agreement | Face Value | Market Value | Repurchase Price | ||||||||||||
Credit Suisse Group | 0.03% due 01/02/09 | $ | 49,841,465 | $ | 49,841,465 | $ | 49,841,548 | |||||||||
Mizuho Financial Group, Inc. | 0.02% due 01/02/09 | 45,000,000 | 45,000,000 | 45,000,050 | ||||||||||||
Morgan Stanley | 0.01% due 01/02/09 | 45,000,000 | 45,000,000 | 45,000,025 | ||||||||||||
UBS Financial Services | 0.01% due 01/02/09 | 45,000,000 | 45,000,000 | 45,000,025 | ||||||||||||
$ | 184,841,465 | $ | 184,841,648 | |||||||||||||
As of December 31, 2008, the collateral for the repurchase agreements was as follows:
Security Type | Maturity Dates | Range of Rates | Par Value | Market Value | ||||||||||||
U.S. Treasury Notes | 08/31/09 – 08/15/18 | 1.500% – 5.125% | $ | 69,022,000 | $ | 76,858,108 | ||||||||||
U.S. Treasury Bill | 05/07/09 | — | 45,906,500 | 45,900,073 | ||||||||||||
U.S. TIP Bond | 01/15/26 | 2.000% | 43,599,000 | 45,900,318 | ||||||||||||
U.S. TIP Note | 01/15/10 | 4.250% | 15,365,000 | 19,837,560 | ||||||||||||
U.S. Treasury Bond | 02/15/19 – 05/15/30 | 6.250% – 8.875% | 31,000 | 47,724 | ||||||||||||
$ | 188,543,783 | |||||||||||||||
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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 145
NOTES TO FINANCIAL STATEMENTS (continued)
6. Fair Value Measurement
Effective January 1, 2008, the Funds adopted 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 following table summarizes the inputs used to value the Funds’ net assets at December 31, 2008:
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | |||||||||||||||||||||||
Investments | Other Financial | Investments | Other Financial | Investments | Other Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | * | In Securities | Instruments | * | In Securities | Instruments | * | Total | ||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Nova Fund | $ | 35,648,580 | $ | 442,503 | $ | — | $ | 235,937 | $ | — | $ | — | $ | 36,327,020 | ||||||||||||||
Inverse S&P 500 Strategy Fund | 8,368,873 | — | 9,999,807 | 54,078 | — | — | 18,422,758 | |||||||||||||||||||||
NASDAQ-100® Fund | 31,870,211 | 25,215 | — | 13,995 | — | — | 31,909,421 | |||||||||||||||||||||
Inverse NASDAQ-100® Strategy Fund | 11,733,400 | 60,386 | 999,967 | 15,823 | — | — | 12,809,576 | |||||||||||||||||||||
S&P 500 2x Strategy Fund | 22,246,613 | 529,828 | — | 377,636 | — | — | 23,154,077 | |||||||||||||||||||||
NASDAQ-100® 2x Strategy Fund | 20,279,908 | 198,498 | — | 76,539 | — | — | 20,554,945 | |||||||||||||||||||||
Mid-Cap 1.5x Strategy Fund | 10,618,179 | 352,821 | — | 159,908 | — | — | 11,130,908 | |||||||||||||||||||||
Inverse Mid-Cap Strategy Fund | 3,428,660 | — | 999,984 | — | — | — | 4,428,644 | |||||||||||||||||||||
Russell 2000® 2x Strategy Fund | 2,592,229 | — | — | 268,188 | — | — | 2,860,417 | |||||||||||||||||||||
Russell 2000® 1.5x Strategy Fund | 12,675,687 | 292,469 | — | 343,880 | — | — | 13,312,036 | |||||||||||||||||||||
Inverse Russell 2000® Strategy Fund | 4,154,137 | — | 1,499,975 | — | — | — | 5,654,112 | |||||||||||||||||||||
Government Long Bond 1.2x Strategy Fund | 50,222,999 | 3,790,546 | 18,059,694 | — | — | — | 72,073,239 | |||||||||||||||||||||
Inverse Government Long Bond Strategy Fund | 6,987,293 | 173,590 | 3,499,930 | — | — | — | 10,660,813 | |||||||||||||||||||||
Europe 1.25x Strategy Fund | 12,100,401 | — | — | 488,671 | — | — | 12,589,072 | |||||||||||||||||||||
Japan 1.25x Strategy Fund | 10,280,272 | — | — | 979,277 | — | — | 11,259,549 | |||||||||||||||||||||
Dow 2x Strategy Fund | 26,710,665 | 777,950 | — | — | — | — | 27,488,615 | |||||||||||||||||||||
Inverse Dow 2x Strategy Fund | 5,743,422 | — | 2,999,932 | 17,210 | — | — | 8,760,564 | |||||||||||||||||||||
Small-Cap Value Fund | 10,555,008 | — | — | — | — | — | 10,555,008 | |||||||||||||||||||||
Mid-Cap Value Fund | 7,537,523 | — | — | — | — | — | 7,537,523 | |||||||||||||||||||||
Large-Cap Value Fund | 9,469,635 | — | — | — | — | — | 9,469,635 | |||||||||||||||||||||
Small-Cap Growth Fund | 13,709,207 | — | — | — | — | — | 13,709,207 | |||||||||||||||||||||
Mid-Cap Growth Fund | 11,622,383 | — | — | — | — | — | 11,622,383 | |||||||||||||||||||||
Large-Cap Growth Fund | 13,227,040 | — | — | — | — | — | 13,227,040 | |||||||||||||||||||||
U.S. Government Money Market Fund | — | — | 373,807,711 | — | — | — | 373,807,711 |
146 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | |||||||||||||||||||||||
Investments | Other Financial | Investments | Other Financial | Investments | Other Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | * | In Securities | Instruments | * | In Securities | Instruments | * | Total | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Nova Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Inverse S&P 500 Strategy Fund | — | 69,133 | — | — | — | — | 69,133 | |||||||||||||||||||||
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 | — | 104,331 | — | 75,791 | — | — | 180,122 | |||||||||||||||||||||
Russell 2000® 2x Strategy Fund | — | 809 | — | — | — | — | 809 | |||||||||||||||||||||
Russell 2000® 1.5x Strategy Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Inverse Russell 2000® Strategy Fund | — | 102,397 | — | 165,120 | — | — | 267,517 | |||||||||||||||||||||
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 | — | — | — | 17,276 | — | — | 17,276 | |||||||||||||||||||||
Inverse Dow 2x Strategy Fund | — | 276,182 | — | — | — | — | 276,182 | |||||||||||||||||||||
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 | — | — | — | — | — | — | — |
* | Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end. |
7. Securities Transactions
During the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
Inverse | ||||||||||||||||||||||||||||||||
Inverse | NASDAQ-100® | S&P 500 2x | NASDAQ-100® | Mid-Cap 1.5x | Inverse | |||||||||||||||||||||||||||
S&P 500 | NASDAQ-100® | Strategy | Strategy | 2x Strategy | Strategy | Mid-Cap | ||||||||||||||||||||||||||
Nova Fund | Strategy Fund | Fund | Fund | Fund | Fund | Fund | Strategy Fund | |||||||||||||||||||||||||
Purchases | $ | 81,738,129 | $ | — | $ | 47,665,012 | $ | — | $ | 70,311,329 | $ | 40,202,254 | $ | 22,197,550 | $ | — | ||||||||||||||||
Sales | $ | 100,525,081 | $ | — | $ | 59,929,511 | $ | — | $ | 56,189,052 | $ | 49,940,788 | $ | 34,140,259 | $ | — | ||||||||||||||||
Government | Inverse | |||||||||||||||||||||||||||||||
Russell 2000® | Russell 2000® | Inverse | Long Bond | Government | Europe 1.25x | Japan 1.25x | Dow 2x | |||||||||||||||||||||||||
2x Strategy | 1.5x Strategy | Russell 2000® | 1.2x Strategy | Long Bond | Strategy | Strategy | Strategy | |||||||||||||||||||||||||
Fund | Fund | Strategy Fund | Fund | Strategy Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
Purchases | $ | 7,437,327 | $ | 47,010,319 | $ | — | $ | 588,158,275 | $ | 228,582,936 | $ | 29,323,965 | $ | — | $ | 17,108,269 | ||||||||||||||||
Sales | $ | 8,927,756 | $ | 47,797,767 | $ | — | $ | 608,698,414 | $ | 241,738,517 | $ | 62,608,653 | $ | — | $ | 19,925,715 | ||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||
Inverse Dow 2x | Small-Cap | Mid-Cap | Large-Cap | Government | ||||||||||||||||||||||||||||
Strategy | Small-Cap | Mid-Cap | Large-Cap | Growth | Growth | Growth | Money Market | |||||||||||||||||||||||||
Fund | Value Fund | Value Fund | Value Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
Purchases | $ | — | $ | 59,740,441 | $ | 33,759,003 | $ | 69,845,014 | $ | 72,212,439 | $ | 89,604,575 | $ | 83,416,665 | $ | — | ||||||||||||||||
Sales | $ | — | $ | 48,439,604 | $ | 33,935,600 | $ | 73,609,604 | $ | 64,725,377 | $ | 94,458,996 | $ | 94,815,273 | $ | — |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 147
NOTES TO FINANCIAL STATEMENTS (continued)
8. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:
Purchased through | Net Shares | |||||||||||||||||||||||||||||||
Shares Purchased | Dividend Reinvestment | Shares Redeemed | Purchased (Redeemed) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Nova Fund | 26,267,419 | 26,120,576 | 50,939 | 114,081 | (26,775,743 | ) | (31,396,735 | ) | (457,385 | ) | (5,162,078 | ) | ||||||||||||||||||||
Inverse S&P 500 Strategy Fund | 21,518,902 | 19,376,299 | 2,739 | 18,344 | (21,624,298 | ) | (23,220,677 | ) | (102,657 | ) | (3,826,034 | ) | ||||||||||||||||||||
NASDAQ-100® Fund | 15,541,893 | 20,423,064 | 7,546 | 3,482 | (16,959,483 | ) | (20,609,419 | ) | (1,410,044 | ) | (182,873 | ) | ||||||||||||||||||||
Inverse NASDAQ-100® Strategy Fund | 17,935,192 | 64,675,490 | 2,502 | 53,434 | (18,256,560 | ) | (65,135,299 | ) | (318,866 | ) | (406,375 | ) | ||||||||||||||||||||
S&P 500 2x Strategy Fund | 33,472,451 | 9,149,129 | — | 211,350 | (31,060,680 | ) | (9,202,386 | ) | 2,411,771 | 158,093 | ||||||||||||||||||||||
NASDAQ-100® 2x Strategy Fund | 20,970,855 | 39,415,461 | 5,285 | 6,199 | (20,300,480 | ) | (38,516,138 | ) | 675,660 | 905,522 | ||||||||||||||||||||||
Mid-Cap 1.5x Strategy Fund | 5,902,564 | 14,637,784 | — | 182,225 | (5,846,105 | ) | (15,146,674 | ) | 56,459 | (326,665 | ) | |||||||||||||||||||||
Inverse Mid-Cap Strategy Fund | 1,570,980 | 3,053,209 | 585 | 3,463 | (1,555,212 | ) | (3,131,417 | ) | 16,353 | (74,745 | ) | |||||||||||||||||||||
Russell 2000® 2x Strategy Fund | 4,343,841 | 2,021,473 | 9,032 | 2,538 | (4,165,015 | ) | (1,923,950 | ) | 187,858 | 100,061 | ||||||||||||||||||||||
Russell 2000® 1.5x Strategy Fund | 8,537,378 | 8,677,892 | 1,695 | 58,488 | (8,335,124 | ) | (9,873,791 | ) | 203,949 | (1,137,411 | ) | |||||||||||||||||||||
Inverse Russell 2000® Strategy Fund | 6,499,337 | 6,055,699 | 1,622 | 11,037 | (6,651,630 | ) | (6,087,515 | ) | (150,671 | ) | (20,779 | ) | ||||||||||||||||||||
Government Long Bond 1.2x Strategy Fund | 38,451,799 | 40,890,318 | 129,093 | 166,118 | (39,162,852 | ) | (41,149,330 | ) | (581,960 | ) | (92,894 | ) | ||||||||||||||||||||
Inverse Government Long Bond Strategy Fund | 17,094,570 | 8,139,115 | 3,211 | 37,001 | (17,215,791 | ) | (8,633,879 | ) | (118,010 | ) | (457,763 | ) | ||||||||||||||||||||
Europe 1.25x Strategy Fund | 3,814,283 | 6,760,829 | 54,998 | 325,736 | (5,644,181 | ) | (7,343,936 | ) | (1,774,900 | ) | (257,371 | ) | ||||||||||||||||||||
Japan 1.25x Strategy Fund | 4,289,085 | 5,089,542 | 5,839 | 48,429 | (4,110,880 | ) | (5,577,430 | ) | 184,044 | (439,459 | ) | |||||||||||||||||||||
Dow 2x Strategy Fund | 13,806,095 | 7,160,299 | 43,689 | 188,696 | (11,826,705 | ) | (7,291,478 | ) | 2,023,079 | 57,517 | ||||||||||||||||||||||
Inverse Dow 2x Strategy Fund | 10,433,543 | 4,904,068 | 108,279 | 23,215 | (10,625,926 | ) | (5,026,052 | ) | (84,104 | ) | (98,769 | ) | ||||||||||||||||||||
Small-Cap Value Fund | 4,039,032 | 1,754,037 | 11,557 | 115,167 | (3,569,262 | ) | (2,529,670 | ) | 481,327 | (660,466 | ) | |||||||||||||||||||||
Mid-Cap Value Fund | 2,142,597 | 5,074,565 | 195,866 | 18,096 | (2,232,246 | ) | (5,587,238 | ) | 106,217 | (494,577 | ) | |||||||||||||||||||||
Large-Cap Value Fund | 4,050,380 | 5,719,976 | 313,184 | 207,526 | (4,306,582 | ) | (7,571,756 | ) | 56,982 | (1,644,254 | ) | |||||||||||||||||||||
Small-Cap Growth Fund | 3,612,727 | 3,790,354 | — | 57,233 | (3,300,132 | ) | (4,167,256 | ) | 312,595 | (319,669 | ) | |||||||||||||||||||||
Mid-Cap Growth Fund | 3,431,308 | 5,781,889 | — | 90,205 | (3,689,854 | ) | (5,519,616 | ) | (258,546 | ) | 352,478 | |||||||||||||||||||||
Large-Cap Growth Fund | 4,488,552 | 5,518,742 | — | 26,086 | (5,012,226 | ) | (5,102,555 | ) | (523,674 | ) | 442,273 | |||||||||||||||||||||
U.S. Government Money Market Fund | 1,084,838,243 | 1,479,694,977 | 3,944,200 | 10,144,753 | (1,005,259,658 | ) | (1,420,642,030 | ) | 83,522,785 | 69,197,700 |
148 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (concluded)
9. Portfolio Securities Loaned
During the year ended December 31, 2008, certain Funds lent 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. As of December 31, 2008, the Funds had ceased participation in securities lending.
10. Continued Participation in the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds
U.S. Government Money Market Fund (the “Fund”) has filed a Guarantee Agreement with the United States Department of the Treasury (the “Treasury”) to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”).
Under the Program, the Treasury will guarantee the share price of shares of the Fund held by shareholders as of September 19, 2008 at $1.00 per share if the Fund’s net asset value per share falls below $0.995 (a “Guarantee Event”) and the Fund liquidates. Recovery under the Program is subject to certain conditions and limitations, including the following:
• | For shareholders of a Fund, the Program provides a guarantee for the lesser of (a) the number of Fund shares owned by the shareholder as of the close of business on September 19, 2008, or (b) the number of Fund shares owned by the shareholder on the date of a Guarantee Event. | ||
• | The total amount of coverage available for all participants in the Program is limited to the amount of funds available under the Federal Exchange Stabilization Fund at the time of a Guarantee Event (currently approximately $50 billion). | ||
• | In order to recover, a Guarantee Event must occur during the term of the Program. |
Fund shares acquired by investors after September 19, 2008 that increase the number of Fund shares the investor held as of the close of business on September 19, 2008 are not eligible for protection under the Program. In addition, Fund shares acquired by investors who did not hold Fund shares as of the close of business on September 19, 2008 are not eligible for protection under the Program.
The Program will remain in effect until April 30, 2009, after which the Secretary of the Treasury will review the need for, and terms of, the Program. Participation in the initial three months of the Program required a payment to the Treasury in the amount of .01% of the value of all shares outstanding as of September 19, 2008. Continued participation in the Program required an additional payment to the Treasury in the amount of .015% of the value of all shares outstanding as of September 19, 2008, which were both paid by the Fund. The Secretary may extend the Program through the close of business on September 18, 2009. If the Program is extended, the Fund will consider whether to continue to participate and pay any additional fees.
11. Change in Independent Registered Public Accounting Firm
The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.
12. 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. Management is evaluating the impact of FAS 161 on its current disclosures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 149
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
of the Rydex Variable Trust:
of the Rydex Variable Trust:
We have audited the accompanying statements of assets and liabilities of 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 and U.S Government Money Market Fund (twenty-four of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets for the year ended December 31, 2007 and the financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 26, 2008 expressed an unqualified opinion on those financial statements and financial highlights. |
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. |
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles. |
McLean, Virginia
February 26, 2009
February 26, 2009
150 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
OTHER INFORMATION (Unaudited)
Tax Information
This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.
Of the ordinary income distributions paid during the year, the following Funds had the corresponding percentages qualify for the dividends received deduction for corporations:
Fund | % Qualifying | |||
Nova Fund | 100.00 | % | ||
NASDAQ-100® Fund | 100.00 | % | ||
NASDAQ-100® 2x Strategy Fund | 65.15 | % | ||
Russell 2000® 2x Strategy Fund | 56.52 | % | ||
Russell 2000® 1.5x Strategy Fund | 30.08 | % | ||
Dow 2x Strategy Fund | 72.50 | % | ||
Small-Cap Value Fund | 100.00 | % | ||
Mid-Cap Value Fund | 100.00 | % | ||
Large-Cap Value Fund | 34.75 | % |
The Funds’ distributions to shareholders included:
Europe 1.25x | Inverse Dow 2x | Mid-Cap | Large-Cap | |||||||||||||
Strategy | Strategy | Value | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
From long-term capital gains, subject to the 15% rate gains category: | $ | 254,418 | $ | 3,237,015 | $ | 1,456,316 | $ | 2,551,427 |
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.
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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 151
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
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Carl G. Verboncoeur* | Rydex Series Funds – 2004 | 160 | ||
Trustee, President (1952) | Rydex Variable Trust – 2004 | |||
Rydex Dynamic Funds – 2004 | ||||
Rydex ETF Trust – 2004 | ||||
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) | ||||
Michael P. Byrum* | Rydex Series Funds – 2005 | 160 | ||
Trustee, Vice President | Rydex Variable Trust – 2005 | |||
(1970) | Rydex Dynamic Funds – 2005 | |||
Rydex ETF Trust – 2005 | ||||
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 | ||||
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
John O. Demaret | Rydex Series Funds – 1997 | 151 | ||
Trustee, Chairman of the | Rydex Variable Trust – 1998 | |||
Board (1940) | Rydex Dynamic Funds – 1999 | |||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Retired | ||||
Corey A. Colehour | Rydex Series Funds – 1993 | 151 | ||
Trustee (1945) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
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 | Rydex Series Funds – 1995 | 151 | ||
Trustee (1941) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group | ||||
Werner E. Keller | Rydex Series Funds – 2005 | 151 | ||
Trustee (1940) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 | ||||
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001) | ||||
152 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Thomas F. Lydon, Jr. | Rydex Series Funds – 2005 | 151 | ||
Trustee (1960) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 | ||||
Principal Occupations During Past Five Years: President, Global Trends Investments | ||||
Patrick T. McCarville | Rydex Series Funds – 1997 | 151 | ||
Trustee (1942) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc. | ||||
Roger Somers | Rydex Series Funds – 1993 | 151 | ||
Trustee (1944) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Owner, Arrow Limousine |
EXECUTIVE OFFICERS
Name, Position and | Principal Occupations | |
Year of Birth | During Past Five Years | |
Nick Bonos* Vice President and Treasurer (1963) | 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. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 153
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVABENF-ANN-2-1208x1209
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVABENF-ANN-2-1208x1209
DECEMBER 31, 2008
RYDEX VARIABLE TRUST ANNUAL REPORT
SECTOR FUNDS
SECTOR FUNDS
BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
CONSUMER PRODUCTS FUND
ELECTRONICS FUND
ENERGY FUND
ENERGY SERVICES FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
INTERNET FUND
LEISURE FUND
PRECIOUS METALS FUND
RETAILING FUND
TECHNOLOGY FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
UTILITIES FUND
GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888. |
This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1 |
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close. |
Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses. |
Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities. |
It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases); home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels. |
Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace. |
Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP. |
The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009. |
In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward. |
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us. |
Sincerely,
Michael Byrum
President & Chief Investment Officer
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
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. Shareholders of a Fund 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 June 30, 2008 and ending December 31, 2008.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 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. Investors can assess a 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 a 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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 3 |
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)
Beginning | Ending | Expenses | ||||||||||||||
Expense | Account Value | Account Value | Paid During | |||||||||||||
Ratio | † | June 30, 2008 | December 31, 2008 | Period | * | |||||||||||
Table 1. Based on actual Fund return | ||||||||||||||||
Banking Fund | 1.66% | $ 1,000.00 | $ 839.00 | $7.67 | ||||||||||||
Basic Materials Fund | 1.64% | 1,000.00 | 515.90 | 6.25 | ||||||||||||
Biotechnology Fund | 1.65% | 1,000.00 | 925.10 | 7.98 | ||||||||||||
Consumer Products Fund | 1.65% | 1,000.00 | 870.20 | 7.76 | ||||||||||||
Electronics Fund | 1.65% | 1,000.00 | 575.00 | 6.53 | ||||||||||||
Energy Fund | 1.64% | 1,000.00 | 446.80 | 5.96 | ||||||||||||
Energy Services Fund | 1.64% | 1,000.00 | 337.20 | 5.51 | ||||||||||||
Financial Services Fund | 1.64% | 1,000.00 | 681.60 | 6.93 | ||||||||||||
Health Care Fund | 1.65% | 1,000.00 | 837.10 | 7.62 | ||||||||||||
Internet Fund | 1.64% | 1,000.00 | 640.60 | 6.76 | ||||||||||||
Leisure Fund | 1.69% | 1,000.00 | 643.00 | 6.98 | ||||||||||||
Precious Metals Fund | 1.54% | 1,000.00 | 585.60 | 6.14 | ||||||||||||
Retailing Fund | 1.65% | 1,000.00 | 761.00 | 7.30 | ||||||||||||
Technology Fund | 1.65% | 1,000.00 | 614.70 | 6.70 | ||||||||||||
Telecommunications Fund | 1.65% | 1,000.00 | 651.30 | 6.85 | ||||||||||||
Transportation Fund | 1.64% | 1,000.00 | 778.30 | 7.33 | ||||||||||||
Utilities Fund | 1.65% | 1,000.00 | 732.50 | 7.19 | ||||||||||||
Table 2. Based on hypothetical 5% return (before expenses) | ||||||||||||||||
Banking Fund | 1.66% | 1,000.00 | 1,016.79 | 8.42 | ||||||||||||
Basic Materials Fund | 1.64% | 1,000.00 | 1,016.89 | 8.31 | ||||||||||||
Biotechnology Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Consumer Products Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Electronics Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Energy Fund | 1.64% | 1,000.00 | 1,016.89 | 8.31 | ||||||||||||
Energy Services Fund | 1.64% | 1,000.00 | 1,016.89 | 8.31 | ||||||||||||
Financial Services Fund | 1.64% | 1,000.00 | 1,016.89 | 8.31 | ||||||||||||
Health Care Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Internet Fund | 1.64% | 1,000.00 | 1,016.89 | 8.31 | ||||||||||||
Leisure Fund | 1.69% | 1,000.00 | 1,016.64 | 8.57 | ||||||||||||
Precious Metals Fund | 1.54% | 1,000.00 | 1,017.39 | 7.81 | ||||||||||||
Retailing Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Technology Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Telecommunications Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 | ||||||||||||
Transportation Fund | 1.64% | 1,000.00 | 1,016.89 | 8.31 | ||||||||||||
Utilities Fund | 1.65% | 1,000.00 | 1,016.84 | 8.36 |
* | 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 number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies. | |
† | Annualized |
4 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)
BANKING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and savings and loan institutions.
Inception: May 2, 2001
The subprime debacle and subsequent collapse of the U.S. housing market decimated the banking sector this year. Rydex Banking Fund fell 41.16% compared to the S&P 500 Index’s -37.00% return. Every industry in the banking sector felt the effects of the impending global recession in 2008. Thrifts and mortgage finance suffered the most, falling more than -58% each. While several banks simply failed or were taken over, there was one industry stand-out: Unionbancal Corporation, which ended the year up 54.7%. The worst-performing stock in this industry was clearly Washington Mutual Inc., which lost 98.9% before being taken over by the Office of Thrift Supervision.
Cumulative Fund Performance:
May 2, 2001 – December 31, 2008
May 2, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/02/01) | ||||||||||
BANKING FUND | -41.16 | % | -11.84 | % | -4.51 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -2.55 | % | ||||||
S&P 500 FINANCIALS INDEX | -55.27 | % | -12.48 | % | -7.52 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Financials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Wells Fargo & Co. | 4.9 | % | ||
JPMorgan Chase & Co. | 4.3 | % | ||
U.S. Bancorp | 4.1 | % | ||
HSBC Holdings PLC — SP ADR | 3.6 | % | ||
UBS AG — SP ADR | 3.4 | % | ||
Credit Suisse Group AG — SP ADR | 3.1 | % | ||
Bank of America Corp. | 2.9 | % | ||
PNC Financial Services Group, Inc. | 2.5 | % | ||
BB&T Corp. | 2.4 | % | ||
Barclays PLC — SP ADR | 2.3 | % | ||
Top Ten Total | 33.5 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
BASIC MATERIALS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the mining, manufacture or sale of basic materials, such as lumber, steel, iron, aluminum, concrete, chemicals and other basic building and manufacturing materials.
Inception: May 2, 2001
Rydex Basic Materials Fund turned in a -45.40% return for the one-year period ended December 31, 2008, compared to the S&P 500 Index’s -37.00% return. The basic materials industry was the second-worst performing market sector, with most of its industries ending the year in double-digit losses. The top-performing industries were building products (down 8.4%) and containers & packaging (down 28.6%) with Millennium Pharmaceuticals delivering a positive return of 66.9% for the year. On the downside, the worst performer in this category was the beleaguered paper & forest products, which lost 67.1% in
Cumulative Fund Performance:
May 2, 2001 – December 31, 2008
May 2, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
large part due to the multinational mining group Rio Tinto, which was down 78.5%.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/02/01) | ||||||||||
BASIC MATERIALS FUND | -45.40 | % | 2.38 | % | 2.94 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -2.55 | % | ||||||
S&P 500 MATERIALS INDEX | -45.66 | % | -1.25 | % | 2.36 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Materials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
BHP Billiton Ltd. — SP ADR | 4.3 | % | ||
Barrick Gold Corp. | 3.2 | % | ||
Companhia Vale do Rio Doce — SP ADR | 2.9 | % | ||
Monsanto Co. | 2.8 | % | ||
Goldcorp, Inc. | 2.7 | % | ||
ArcelorMittal | 2.5 | % | ||
Newmont Mining Corp. | 2.4 | % | ||
Syngenta AG — SP ADR | 2.3 | % | ||
Nucor Corp. | 2.2 | % | ||
Potash Corporation of Saskatchewan | 2.1 | % | ||
Top Ten Total | 27.4 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
BIOTECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic or biological engineering and in the design, manufacture or sale of related biotechnology products or services.
Inception: May 2, 2001
Rydex Biotechnology Fund returned -11.78% compared to the S&P 500 Index’s -37.00% return. The industry itself consists of two subsets: biotechnology and life sciences tools & services. While both were down, they performed significantly better than the broader markets.
The biotechnology industry was down 9.6% while life sciences tools & services lost only 4.0%.
Cumulative Fund Performance:
May 2, 2001 – December 31, 2008
May 2, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/02/01) | ||||||||||
BIOTECHNOLOGY FUND | -11.78 | % | -0.07 | % | -3.46 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -2.55 | % | ||||||
S&P 500 HEALTH CARE INDEX | -22.81 | % | -0.73 | % | -1.21 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Genentech, Inc. | 12.8 | % | ||
Amgen, Inc. | 11.1 | % | ||
Gilead Sciences, Inc. | 10.2 | % | ||
Celgene Corp. | 6.6 | % | ||
Biogen Idec, Inc. | 4.3 | % | ||
Genzyme Corp. | 4.3 | % | ||
Cephalon, Inc. | 3.3 | % | ||
Vertex Pharmaceuticals, Inc. | 3.0 | % | ||
Myriad Genetics, Inc. | 2.5 | % | ||
Alexion Pharmaceuticals, Inc. | 2.2 | % | ||
Top Ten Total | 60.3 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
CONSUMER PRODUCTS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally.
Inception: May 29, 2001
Rydex Consumer Products Fund returned -23.39% compared to the S&P 500 Index’s -37.00%. While the consumer products sector fared better than the broader markets in 2008, it did not provide investors with much shelter from the all-encompassing financial storm. All of its industry returns were in negative territory for the year, with the best-performing group remaining household products, which lost 16.0%. WM Wrigley was up 38.6% for 2008. The worst-performing industry remained personal products (down 34.9%), with Supervalu Inc.—the leading U.S.-based grocery distributor—down 59.8%.
Cumulative Fund Performance:
May 29, 2001 – December 31, 2008
May 29, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/29/01) | ||||||||||
CONSUMER PRODUCTS FUND | -23.39 | % | 2.43 | % | 3.95 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.59 | % | ||||||
S&P500 CONSUMER STAPLES INDEX | -15.44 | % | 4.42 | % | 4.10 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Consumer Staples Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Procter & Gamble Co. | 7.8 | % | ||
Coca-Cola Co. | 6.1 | % | ||
Philip Morris International, Inc. | 5.5 | % | ||
PepsiCo, Inc. | 5.4 | % | ||
Unilever NV | 3.7 | % | ||
Kraft Foods, Inc. | 3.7 | % | ||
Colgate-Palmolive Co. | 3.6 | % | ||
Diageo PLC — SP ADR | 3.3 | % | ||
Archer-Daniels-Midland Co. | 3.2 | % | ||
Altria Group, Inc. | 2.9 | % | ||
Top Ten Total | 45.2 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ELECTRONICS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the electronics sector, including semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices.
Inception: August 3, 2001
Rydex Electronics Fund returned -50.11%, as compared to the S&P 500 Index’s return of -37.00% for the same period. The electronics sector consists primarily of one industry group—semiconductors & semiconductor equipment—which lost 48.8% this year. There were a wide range of returns amongst this sector’s constituents. The best performing-stock, fuel cell maker Entegris Inc lost 4.8% while the worst performing stock, Infineon Technologies, ended 2008 down more than 88.0%.
Cumulative Fund Performance:
August 3, 2001 – December 31, 2008
August 3, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (08/03/01) | ||||||||||
ELECTRONICS FUND | -50.11 | % | -16.58 | % | -15.25 | % | ||||||
S&P500 INDEX | -37.00 | % | 2.19 | % | -2.12 | % | ||||||
S&P500 INFORMATION TECHNOLOGY INDEX | -43.14 | % | -5.77 | % | -6.14 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Intel Corp. | 10.8 | % | ||
Taiwan Semiconductor Manufacturing | ||||
Company Ltd. — SP ADR | 7.7 | % | ||
Texas Instruments, Inc. | 5.1 | % | ||
Applied Materials, Inc. | 4.1 | % | ||
ASML Holding NV | 3.9 | % | ||
Broadcom Corp. — Class A | 3.6 | % | ||
Altera Corp. | 2.8 | % | ||
Analog Devices, Inc. | 2.7 | % | ||
Nvidia Corp. | 2.7 | % | ||
STMicroelectronics NV — SP ADR | 2.6 | % | ||
Top Ten Total | 46.0 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ENERGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the energy field, including the exploration, production and development of oil, gas, coal and alternative sources of energy.
Inception: May 29, 2001
Rydex Energy Fund returned -46.03% during a tumultuous year in which oil prices soared to new highs of more than $145 per barrel early in the year, only to come crashing down by year-end. In fact, the oil industry lost nearly two-thirds of its value from its historic summer highs. This plummet in oil prices negatively impacted the entire energy sector, which consists of two industry groups—energy equipment & services (down 57.88% for the year) and oil, gas & consumable fuels (which lost 40.9%). The sector wasn’t alone—the broad-market S&P 500 Index lost 37.00% for the one-year period.
Despite the doom and gloom in this tumultuous sector, a few stocks managed to end 2008 in positive territory.
Cumulative Fund Performance:
May 29, 2001 – December 31, 2008
May 29, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
The best-performing stock was Concho Resources Inc., which closed the year at a respectable 14.7%. The worst-performing stock was Smith International Inc., which ended the year down 68.7%.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/29/01) | ||||||||||
ENERGY FUND | -46.03 | % | 8.08 | % | 3.77 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.59 | % | ||||||
S&P500 ENERGY INDEX | -34.86 | % | 13.43 | % | 8.21 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Energy Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Exxon Mobil Corp. | 9.1 | % | ||
Chevron Corp. | 5.5 | % | ||
BP PLC — SP ADR | 5.2 | % | ||
Royal Dutch Shell PLC — SP ADR | 4.2 | % | ||
ConocoPhillips | 3.6 | % | ||
Occidental Petroleum Corp. | 3.2 | % | ||
Petroleo Brasileiro SA | 2.9 | % | ||
Schlumberger Ltd. | 2.4 | % | ||
Devon Energy Corp. | 2.2 | % | ||
Apache Corp. | 2.1 | % | ||
Top Ten Total | 40.4 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ENERGY SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the energy services field, including those that provide services and equipment in the areas of oil, coal and gas exploration and production.
Inception: May 2, 2001
Rydex Energy Services Fund returned -57.60% for the one-year period ending December 31, 2008 versus the S&P 500 Index’s return of -37.00%. The industry holdings in this fund are broader and include more smaller-cap names than its counterparts held in Rydex Energy Fund.
It was a tumultuous year for the energy services industry. Oil prices soared to unprecedented highs of more than $145 per barrel early in the year, only to come crashing down by year-end. By the time 2008 came to a close, the oil industry had lost nearly two-thirds of its value from its summer highs. As can be expected, the fall in oil prices negatively impacted the holdings in Rydex Energy Services
Cumulative Fund Performance:
May 2, 2001 – December 31, 2008
May 2, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
Fund, with only five stocks returning positive gains for the year. The best-performing stock was WH Energy Services Inc., which was up 58.6%. The worst-performing stock was Smith International Inc., which ended the year down 68.7%.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/02/01) | ||||||||||
ENERGY SERVICES FUND | -57.60 | % | 5.05 | % | -1.87 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.55 | % | ||||||
S&P500 ENERGY INDEX | -34.86 | % | 13.43 | % | 8.71 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and S&P 500 Energy Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Schlumberger Ltd. | 9.6 | % | ||
Halliburton Co. | 6.2 | % | ||
Tenaris SA — SP ADR | 5.1 | % | ||
Transocean Ltd. | 4.9 | % | ||
National-Oilwell Varco, Inc. | 4.9 | % | ||
Baker Hughes, Inc. | 4.7 | % | ||
Diamond Offshore Drilling, Inc. | 4.1 | % | ||
Weatherford International Ltd. | 3.7 | % | ||
Noble Corp. | 3.4 | % | ||
Cameron International Corp. | 3.0 | % | ||
Top Ten Total | 49.6 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
FINANCIAL SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the financial services sector.
Inception: July 20, 2001
The subprime debacle and collapse of the U.S. housing market decimated the financial services sector this year. Rydex Financial Services Fund returned -48.04% compared to the S&P 500 Index’s return of -37.00%. The collapse of the mortgage market and spread of financial contagion to the broader stock market hit the sector hard. Financial stocks as a group lost more than half their value. In these historic times the Federal Reserve intervened, bailing out certain firms. The Federal Reserve was also granted unprecedented authority and resources in order to restore normalcy to the financial markets.
None of the financial sector’s industries escaped the fallout from the credit crisis. The best-performing industry, real estate investment trusts, lost 37.2%. The best-performing stock was Unionbancal Corp., which ended the year up 54.7%. The worst-performing
Cumulative Fund Performance:
July 20, 2001 – December 31, 2008
July 20, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
industries lost more than 60% of their value, including thrifts & mortgage finance and real estate & development firms. Leading the pack was Lehman Brothers Holdings, which filed for bankruptcy in September 2008.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (07/20/01) | ||||||||||
FINANCIAL SERVICES FUND | -48.04 | % | -9.83 | % | -6.14 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.06 | % | ||||||
S&P500 FINANCIALS INDEX | -55.27 | % | -12.48 | % | -7.71 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Financials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
JPMorgan Chase & Co. | 2.5 | % | ||
Wells Fargo & Co. | 2.3 | % | ||
HSBC Holdings PLC — SP ADR | 2.2 | % | ||
Bank of America Corp. | 1.5 | % | ||
AXA — SP ADR | 1.5 | % | ||
U.S. Bancorp | 1.5 | % | ||
Travelers Companies, Inc. | 1.4 | % | ||
Bank of New York Mellon Corp. | 1.3 | % | ||
UBS AG — SP ADR | 1.2 | % | ||
Goldman Sachs Group, Inc. | 1.2 | % | ||
Top Ten Total | 16.6 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
HEALTH CARE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the health care industry.
Inception: June 19, 2001
Rydex Health Care Fund returned -24.86% in 2008. The S&P 500 Index returned -37.00%. The health care providers & services industry was the worst performing industry, (down 41.4%) with Coventry Health Care the industry’s laggard (down 74.8%). The best stock of the year was Imclone Systems, which ended 2008 on a high note—up 62.8%.
Cumulative Fund Performance:
June 19, 2001 – December 31, 2008
June 19, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (06/19/01) | ||||||||||
HEALTH CARE FUND | -24.86 | % | -0.32 | % | -0.57 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.04 | % | ||||||
S&P500 HEALTH CARE INDEX | -22.81 | % | -0.73 | % | -1.70 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Johnson & Johnson, Inc. | 4.2 | % | ||
Novartis AG — SP ADR | 3.8 | % | ||
Pfizer, Inc. | 3.7 | % | ||
Teva Pharmaceutical Industries | ||||
Ltd. — SP ADR | 3.4 | % | ||
Sanofi-Aventis — SP ADR | 3.2 | % | ||
GlaxoSmithKline PLC — SP ADR | 3.2 | % | ||
Genentech, Inc. | 3.2 | % | ||
Abbott Laboratories | 3.0 | % | ||
Amgen, Inc. | 2.7 | % | ||
Merck & Company, Inc. | 2.7 | % | ||
Top Ten Total | 33.1 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
INTERNET FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that provide products or services designed for or related to the Internet.
Inception: May 24, 2001
Rydex Internet Fund returned -44.87% for the one-year period ending December 31, 2008 (the broad-market S&P 500 Index returned -37.00% for the same period). The Fund had some very small exposure to the financial industries, including thrifts & mortgage finance and capital markets. Despite the turmoil in the financial sector, these positions fared relatively well for the fund. The thrifts & mortgage finance position gained 1.9% and capital markets lost 5.1%. The worst-performing industry, computers & peripherals, fell 78.8%, with the worst performing stock, Sun Microsystems, down 78.9%. The best-performing stock was BEA Systems, which was up 22.8%. BEA Systems was recently acquired in
Cumulative Fund Performance:
May 24, 2001 – December 31, 2008
May 24, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
April, 2008 by Oracle, a leading provider of enterprise application software.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/24/01) | ||||||||||
INTERNET FUND | -44.87 | % | -5.27 | % | -10.02 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.84 | % | ||||||
S&P500 INFORMATION TECHNOLOGY INDEX | -43.14 | % | -5.77 | % | -7.45 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Cisco Systems, Inc. | 10.2 | % | ||
Google, Inc. — Class A | 8.7 | % | ||
Qualcomm, Inc. | 8.0 | % | ||
Time Warner, Inc. | 6.5 | % | ||
Amazon.com, Inc. | 5.0 | % | ||
Yahoo!, Inc. | 4.5 | % | ||
Research In Motion Ltd. | 4.4 | % | ||
eBay, Inc. | 4.2 | % | ||
Symantec Corp. | 3.6 | % | ||
Juniper Networks, Inc. | 3.4 | % | ||
Top Ten Total | 58.5 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
LEISURE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies in leisure and entertainment businesses.
Inception: May 22, 2001
Rydex Leisure Fund turned in a -49.09% return compared to the S&P 500 Index’s -37.00% return. Consumer spending all but dried up this year. And, as real estate and equity values dropped, leisure stocks suffered. The best-performing industry, leisure equipment & products, lost 31.0%.The worst-performing industry, software (primarily video games), lost 66.0%. The best-performing stock, Panera Bread, was up 19.2%. The two worst-performing stocks, video game makers International Game Technology and Electronic Arts, each lost more than 72%.
Cumulative Fund Performance:
May 22, 2001 – December 31, 2008
May 22, 2001 – December 31, 2008
† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/22/01) | ||||||||||
LEISURE FUND | -49.09 | % | -6.31 | % | -6.48 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.99 | % | ||||||
S&P500 CONSUMER DISCRETIONARY INDEX | -33.49 | % | -6.19 | % | -5.17 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
McDonald’s Corp. | 9.2 | % | ||
Walt Disney Co. | 6.4 | % | ||
Time Warner, Inc. | 6.2 | % | ||
Yum! Brands, Inc. | 4.2 | % | ||
News Corp. — Class A | 4.1 | % | ||
Carnival Corp. | 3.7 | % | ||
Viacom, Inc. — Class B | 3.3 | % | ||
Activision Blizzard, Inc. | 2.9 | % | ||
Marriott International, Inc. — Class A | 2.8 | % | ||
Mattel, Inc. | 2.6 | % | ||
Top Ten Total | 45.4 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
PRECIOUS METALS FUND
OBJECTIVE: To provide capital appreciation by investing in U.S. and foreign companies that are involved in the precious metals sector, including exploration, mining, production and development, and other precious metals-related services.
Inception: May 29, 1997
While the S&P 500 Index returned -37.00% for the one-year period ending December 31, 2008, Rydex Precious Metals Fund returned -38.56%. The Fund represents a concentrated investment in the stocks of gold and other precious metal producers. Gold and other precious metal stocks, normally thought of as defensive holdings, were unable to provide much shelter during the market turmoil. The two best-performing stocks produced double-digit gains: Royal Gold, up 62.9%, and Eldorado Gold Corp., up 37.1%. On the other end of the spectrum, the worst-performing stock was Apex Silver Mines, down 93.6%.
Cumulative Fund Performance:
December 31, 1998 — December 31, 2008
December 31, 1998 — December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
ONE | FIVE | TEN | ||||||||||
YEAR | YEAR | YEAR | ||||||||||
PRECIOUS METALS FUND | -38.56 | % | -1.55 | % | 5.08 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -1.38 | % | ||||||
S&P500 MATERIALS INDEX | -45.66 | % | -1.25 | % | 2.97 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Materials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Barrick Gold Corp. | 8.7 | % | ||
Goldcorp, Inc. | 8.2 | % | ||
Newmont Mining Corp. | 8.0 | % | ||
Agnico-Eagle Mines Ltd. | 6.5 | % | ||
Kinross Gold Corp. | 6.0 | % | ||
Yamana Gold, Inc. | 4.7 | % | ||
Freeport-McMoRan Copper & Gold, Inc. | 4.6 | % | ||
Gold Fields Ltd. — SP ADR | 4.5 | % | ||
AngloGold Ashanti Ltd. — SP ADR | 4.3 | % | ||
Eldorado Gold Corp. | 4.1 | % | ||
Top Ten Total | 59.6 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
RETAILING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, restaurant franchises, mail-order operations and other companies involved in selling products to consumers.
Inception: July 23, 2001
Rydex Retailing Fund delivered a one-year -32.95% return versus the S&P 500 Index’s -37.00% return. This year, retailers suffered through one of the worst holiday shopping seasons in history. The lack of demand from the American consumer is leading to bankruptcies and store closings amongst retailing outfits across the country. The best-performing retail sector was truly defensively oriented: food & staples retailing, down 8.2%. The best-performing stock was Dollar Tree, which was up 61.0% for the year. The worst-performing stock was the online travel discounter, Expedia, which closed the year down 73.09%.
Cumulative Fund Performance:
July 23, 2001 – December 31, 2008
July 23, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (07/23/01) | ||||||||||
RETAILING FUND | -32.95 | % | -5.62 | % | -2.77 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -1.84 | % | ||||||
S&P500 CONSUMER DISCRETIONARY INDEX | -33.49 | % | -6.19 | % | -4.13 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Wal-Mart Stores, Inc. | 11.4 | % | ||
Home Depot, Inc. | 4.9 | % | ||
CVS Caremark Corp. | 4.8 | % | ||
Lowe’s Companies, Inc. | 4.5 | % | ||
Walgreen Co. | 3.8 | % | ||
Target Corp. | 3.6 | % | ||
Costco Wholesale Corp. | 3.4 | % | ||
Amazon.com, Inc. | 3.4 | % | ||
Staples, Inc. | 2.7 | % | ||
Kohl’s Corp. | 2.6 | % | ||
Top Ten Total | 45.1 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
TECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, PC hardware and peripherals companies.
Inception: May 2, 2001
For the one-year period ending December 31, 2008, Rydex Technology Fund returned -45.41%, versus the S&P 500 Index’s -37.00% return. Performance was very weak on the industry level. The top-performing industry, IT services, was down 30.9% for the year. The worst-performing industry groups, Internet software & services and communications equipment, were both down more than -52%. The best-performing stock in this industry for 2008 was BEA Systems, which ended the year on a positive note, returning 22.8% due to the company’s acquisition by Oracle. The worst performing stock was
Cumulative Fund Performance:
May 2, 2001 – December 31, 2008
May 2, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
semi-conductor manufacturer MEMC Electronic Materials, which closed the year down 83.9%.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/02/01) | ||||||||||
TECHNOLOGY FUND | -45.41 | % | -7.82 | % | -8.97 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.55 | % | ||||||
S&P500 INFORMATION TECHNOLOGY INDEX | -43.14 | % | -5.77 | % | -7.39 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Microsoft Corp. | 3.6 | % | ||
International Business Machines Corp. | 3.1 | % | ||
Oracle Corp. | 2.9 | % | ||
Cisco Systems, Inc. | 2.8 | % | ||
Hewlett-Packard Co. | 2.7 | % | ||
Intel Corp. | 2.7 | % | ||
Google, Inc. — Class A | 2.4 | % | ||
Apple, Inc. | 2.4 | % | ||
Nokia Oyj — SP ADR | 2.2 | % | ||
Qualcomm, Inc. | 2.2 | % | ||
Top Ten Total | 27.0 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
TELECOMMUNICATIONS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the development, manufacture or sale of communications services or communications equipment.
Inception: July 27, 2001
Rydex Telecommunications Fund provided a -45.34% one-year total return compared to the S&P 500 Index’s -37.00% return. As expected, all industry performance was in negative territory. The top-performing industry was diversified telecommunication services, which ended the year down 25.4%. The worst-performing industry group, communications equipment, was down 52.4%, with the worst performing stock of the year being Sprint-Nextel, down 86.1%. On the positive side, the best performing stock of the year for telecom was Foundry Networks, which delivered a positive 8.8% for the year.
Cumulative Fund Performance:
July 27, 2001 – December 31, 2008
July 27, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (07/27/01) | ||||||||||
TELECOMMUNICATIONS FUND | -45.34 | % | -4.05 | % | -6.80 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.01 | % | ||||||
S&P500 TELECOMMUNICATION SERVICES INDEX | -30.48 | % | 3.83 | % | -4.28 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Telecommunication Services Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
AT&T, Inc. | 11.0 | % | ||
Verizon Communications, Inc. | 8.8 | % | ||
Vodafone Group PLC — SP ADR | 8.5 | % | ||
Cisco Systems, Inc. | 7.6 | % | ||
Deutsche Telekom AG — SP ADR | 7.0 | % | ||
Qualcomm, Inc. | 4.5 | % | ||
Nokia Oyj — SP ADR | 4.3 | % | ||
America Movil SAB de CV — SP ADR | 4.2 | % | ||
Telefonaktiebolaget LM Ericsson — SP ADR | 4.2 | % | ||
Research In Motion Ltd. | 3.2 | % | ||
Top Ten Total | 63.3 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
TRANSPORTATION FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution or sale of transportation equipment.
Inception: June 11, 2001
Rydex Transportation Fund returned -25.26% for the one-year period ending December 31, 2008 compared to the S&P 500 Index’s -37.00% return. Only one of its four component industries was in positive territory. The top-performing industry was road & rail, up 7.23%. The worst-performing industry group, airlines, was down 43.67%. The best performing stock was Union Pacific Corp., up 37.64%, while the worst-performing stock was US Airways Group, Inc., down 73.87%.
Cumulative Fund Performance:
June 11, 2001 – December 31, 2008
June 11, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (06/11/01) | ||||||||||
TRANSPORTATION FUND | -25.26 | % | -0.46 | % | 0.20 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.47 | % | ||||||
S&P500 INDUSTRIALS INDEX | -39.92 | % | -1.63 | % | -2.37 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Industrials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
United Parcel Service, Inc. — Class B | 9.1 | % | ||
Burlington Northern Santa Fe Corp. | 7.3 | % | ||
Delta Air Lines, Inc. | 7.0 | % | ||
Union Pacific Corp. | 6.4 | % | ||
FedEx Corp. | 6.3 | % | ||
Canadian National Railway Co. | 5.7 | % | ||
Norfolk Southern Corp. | 4.4 | % | ||
CH Robinson Worldwide, Inc. | 4.4 | % | ||
CSX Corp. | 4.3 | % | ||
Expeditors International of Washington, Inc. | 4.1 | % | ||
Top Ten Total | 59.0 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (concluded)
UTILITIES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that operate public utilities.
Inception: May 2, 2001
With industry performance mostly positive, Rydex Utilities Fund returned -29.57% for the one-year period ending December 31, 2008 compared to the S&P 500 Index’s -37.00% return. The top-performing industry was independent power producers & energy traders, up 26.53%. The worst performing industry group, water utilities, was down 3.81%. The best performing stock was NRG Energy, Inc., up 55.26%, while the worst-performing stock was PNM Resources, Inc., down 19.39%.
Cumulative Fund Performance:
May 2, 2001 – December 31, 2008
May 2, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/02/01) | ||||||||||
UTILITIES FUND | -29.57 | % | 4.52 | % | -3.42 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | -2.55 | % | ||||||
S&P500 UTILITIES INDEX | -28.98 | % | 8.29 | % | -0.60 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Utilities Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Exelon Corp. | 4.0 | % | ||
Southern Co. | 3.7 | % | ||
FPL Group, Inc. | 3.3 | % | ||
Dominion Resources, Inc. | 3.0 | % | ||
Duke Energy Corp. | 2.8 | % | ||
Entergy Corp. | 2.7 | % | ||
PG&E Corp. | 2.7 | % | ||
Public Service Enterprise Group, Inc. | 2.5 | % | ||
American Electric Power Company, Inc. | 2.5 | % | ||
FirstEnergy Corp. | 2.4 | % | ||
Top Ten Total | 29.6 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21
SCHEDULE OF INVESTMENTS
December 31, 2008
BANKING FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.7% | ||||||||
Wells Fargo & Co. | 37,829 | $ | 1,115,199 | |||||
JPMorgan Chase & Co. | 31,156 | 982,349 | ||||||
U.S. Bancorp | 37,298 | 932,823 | ||||||
HSBC Holdings PLC — SP ADR | 16,821 | 818,679 | ||||||
UBS AG — SP ADR* | 54,367 | 777,448 | ||||||
Credit Suisse Group AG — SP ADR | 25,467 | 719,697 | ||||||
Bank of America Corp. | 47,805 | 673,094 | ||||||
PNC Financial Services Group, Inc. | 11,902 | 583,198 | ||||||
BB&T Corp. | 20,033 | 550,106 | ||||||
Barclays PLC — SP ADR | 54,651 | 535,580 | ||||||
Wachovia Corp. | 92,750 | 513,835 | ||||||
Hudson City Bancorp, Inc. | 28,509 | 455,004 | ||||||
SunTrust Banks, Inc. | 14,100 | 416,514 | ||||||
People’s United Financial, Inc. | 23,049 | 410,964 | ||||||
M&T Bank Corp. | 5,963 | 342,336 | ||||||
TFS Financial Corp | 25,199 | 325,067 | ||||||
Capitol Federal Financial | 7,022 | 320,203 | ||||||
Regions Financial Corp. | 39,183 | 311,897 | ||||||
Commerce Bancshares, Inc. | 6,666 | 292,971 | ||||||
New York Community Bancorp, Inc. | 23,431 | 280,235 | ||||||
Cullen/Frost Bankers, Inc. | 5,418 | 274,584 | ||||||
KeyCorp | 32,222 | 274,531 | ||||||
Fifth Third Bancorp | 33,146 | 273,786 | ||||||
Valley National Bancorp | 13,346 | 270,256 | ||||||
Associated Banc-Corp. | 12,871 | 269,390 | ||||||
Marshall & Ilsley Corp. | 18,528 | 252,722 | ||||||
BOK Financial Corp. | 5,986 | 241,834 | ||||||
Synovus Financial Corp. | 28,987 | 240,592 | ||||||
National City Corp. | 130,449 | 236,113 | ||||||
City National Corp. | 4,746 | 231,130 | ||||||
Huntington Bancshares, Inc. | 30,135 | 230,834 | ||||||
First Horizon National Corp. | 21,621 | 228,534 | ||||||
First Niagara Financial Group, Inc. | 14,023 | 226,752 | ||||||
Comerica, Inc. | 11,417 | 226,627 | ||||||
Bank of Hawaii Corp. | 4,886 | 220,701 | ||||||
UMB Financial Corp. | 4,485 | 220,393 | ||||||
BancorpSouth, Inc. | 8,950 | 209,072 | ||||||
FirstMerit Corp. | 10,124 | 208,453 | ||||||
Sovereign Bancorp, Inc.* | 69,475 | 207,036 | ||||||
Zions Bancorporation | 8,352 | 204,708 | ||||||
United Bankshares, Inc. | 6,043 | 200,748 | ||||||
Fulton Financial Corp. | 19,912 | 191,553 | ||||||
Westamerica Bancorporation | 3,735 | 191,045 | ||||||
Investors Bancorp, Inc.* | 14,110 | 189,497 | ||||||
Susquehanna Bancshares, Inc. | 11,822 | 188,088 | ||||||
Astoria Financial Corp. | 11,353 | 187,097 | ||||||
Hancock Holding Co. | 4,110 | 186,841 | ||||||
First Financial Bankshares, Inc. | 3,340 | 184,401 | ||||||
International Bancshares Corp. | 8,378 | 182,892 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Cathay General Bancorp | 7,600 | $ | 180,500 | |||||
Trustmark Corp. | 8,360 | 180,492 | ||||||
NewAlliance Bancshares, Inc. | 13,625 | 179,441 | ||||||
Old National Bancorp | 9,767 | 177,369 | ||||||
TCF Financial Corp. | 12,883 | 175,982 | ||||||
Wilmington Trust Corp. | 7,890 | 175,474 | ||||||
Prosperity Bancshares, Inc. | 5,910 | 174,877 | ||||||
National Penn Bancshares, Inc. | 12,007 | 174,222 | ||||||
First Bancorp Puerto Rico | 15,480 | 172,447 | ||||||
FNB Corp. | 12,905 | 170,346 | ||||||
Washington Federal, Inc. | 11,295 | 168,973 | ||||||
East-West Bancorp, Inc. | 10,540 | 168,324 | ||||||
S&T Bancorp, Inc. | 4,510 | 160,105 | ||||||
CVB Financial Corp. | 13,430 | 159,817 | ||||||
Popular, Inc. | 30,665 | 158,231 | ||||||
PrivateBancorp, Inc. | 4,872 | 158,145 | ||||||
Park National Corp. | 2,174 | 155,985 | ||||||
NBT Bancorp, Inc. | 5,570 | 155,737 | ||||||
Signature Bank* | 5,415 | 155,356 | ||||||
MB Financial Corp. | 5,425 | 151,629 | ||||||
First Commonwealth Financial Corp. | 12,220 | 151,284 | ||||||
Glacier Bancorp, Inc. | 7,865 | 149,592 | ||||||
Umpqua Holding Corp. | 10,270 | 148,607 | ||||||
First Midwest Bancorp, Inc. | 7,146 | 142,706 | ||||||
Whitney Holding Corp. | 8,835 | 141,272 | ||||||
Northwest Bancorp, Inc. | 6,546 | 139,953 | ||||||
Pacific Capital Bancorp | 7,990 | 134,871 | ||||||
Webster Financial Corp. | 8,249 | 113,671 | ||||||
SVB Financial Group* | 4,025 | 105,576 | ||||||
Colonial BancGroup, Inc. | 25,916 | 53,646 | ||||||
Total Common Stocks | ||||||||
(Cost $21,881,235) | 22,442,039 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.8% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 415,592 | 415,592 | |||||
Total Repurchase Agreement | ||||||||
(Cost $415,592) | 415,592 | |||||||
Total Investments 99.5% | ||||||||
(Cost $22,296,827) | $ | 22,857,631 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.5% | $ | 110,595 | ||||||
Net Assets – 100.0% | $ | 22,968,226 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
BASIC MATERIALS FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.1% | ||||||||
BHP Billiton Ltd. — SP ADR | 23,818 | $ | 1,021,792 | |||||
Barrick Gold Corp. | 20,508 | 754,079 | ||||||
Companhia Vale do Rio | ||||||||
Doce — SP ADR | 56,550 | 684,820 | ||||||
Monsanto Co. | 9,439 | 664,034 | ||||||
Goldcorp, Inc. | 20,212 | 637,284 | ||||||
ArcelorMittal | 24,272 | 596,848 | ||||||
Newmont Mining Corp. | 14,061 | 572,283 | ||||||
Syngenta AG — SP ADR | 14,160 | 554,222 | ||||||
Nucor Corp. | 11,527 | 532,547 | ||||||
Potash Corporation of Saskatchewan | 6,730 | 492,771 | ||||||
Praxair, Inc. | 8,080 | 479,629 | ||||||
E.I. du Pont de Nemours and Co. | 18,912 | 478,474 | ||||||
Southern Copper Corp. | 29,665 | 476,420 | ||||||
Kinross Gold Corp. | 25,715 | 473,670 | ||||||
The Mosaic Co. | 12,746 | 441,012 | ||||||
AngloGold Ashanti Ltd. — SP ADR | 14,874 | 412,159 | ||||||
Rohm & Haas Co. | 6,337 | 391,563 | ||||||
Rio Tinto PLC — SP ADR | 4,327 | 384,714 | ||||||
Vulcan Materials Co. | 5,366 | 373,366 | ||||||
Agnico-Eagle Mines Ltd. | 6,763 | 347,145 | ||||||
Air Products & Chemicals, Inc. | 6,808 | 342,238 | ||||||
Dow Chemical Co. | 22,611 | 341,200 | ||||||
Alcoa, Inc. | 29,736 | 334,827 | ||||||
Gold Fields Ltd. — SP ADR | 33,431 | 331,970 | ||||||
Cemex SA de CV — SP ADR* | 36,060 | 329,588 | ||||||
Ecolab, Inc. | 9,070 | 318,811 | ||||||
Yamana Gold, Inc. | 40,777 | 314,798 | ||||||
PPG Industries, Inc. | 6,769 | 287,209 | ||||||
Cia de Minas Buenaventura SA — SP ADR | 14,250 | 283,860 | ||||||
Freeport-McMoRan | ||||||||
Copper & Gold, Inc. | 11,608 | 283,700 | ||||||
Gerdau SA — SP ADR | 42,820 | 282,612 | ||||||
Owens-Illinois, Inc.* | 10,233 | 279,668 | ||||||
Eldorado Gold Corp.* | 33,695 | 267,875 | ||||||
Ball Corp. | 6,414 | 266,758 | ||||||
Sigma-Aldrich Corp. | 6,248 | 263,916 | ||||||
Harmony Gold Mining Co. Ltd. — SP ADR* | 24,030 | 263,609 | ||||||
Martin Marietta Materials, Inc. | 2,663 | 258,524 | ||||||
Agrium, Inc. | 7,417 | 253,142 | ||||||
Weyerhaeuser Co. | 7,972 | 244,023 | ||||||
Randgold Resources Ltd. — SP ADR | 5,483 | 240,813 | ||||||
FMC Corp. | 5,222 | 233,580 | ||||||
Sociedad Quimica y Minera de Chile SA — SP ADR | 9,330 | 227,559 | ||||||
United States Steel Corp. | 6,021 | 223,981 | ||||||
Airgas, Inc. | 5,607 | 218,617 | ||||||
Pactiv Corp.* | 8,616 | 214,366 | ||||||
Crown Holdings, Inc.* | 10,821 | �� | 207,763 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Steel Dynamics, Inc. | 17,934 | $ | 200,502 | |||||
International Paper Co. | 16,594 | 195,809 | ||||||
Iamgold Corp. | 31,380 | 191,732 | ||||||
AptarGroup, Inc. | 5,396 | 190,155 | ||||||
Allegheny Technologies, Inc. | 7,384 | 188,514 | ||||||
Scotts Miracle-Gro Co. — Class A | 6,260 | 186,047 | ||||||
Lubrizol Corp. | 5,086 | 185,080 | ||||||
Compass Minerals International, Inc. | 3,149 | 184,720 | ||||||
Bemis Co. | 7,654 | 181,247 | ||||||
CF Industries Holdings, Inc. | 3,580 | 175,993 | ||||||
Sonoco Products Co. | 7,531 | 174,418 | ||||||
Cliffs Natural Resources Inc | 6,768 | 173,328 | ||||||
Silgan Holdings, Inc. | 3,550 | 169,726 | ||||||
International Flavors & | ||||||||
Fragrances, Inc. | 5,540 | 164,649 | ||||||
Albemarle Corp. | 7,090 | 158,107 | ||||||
Silver Wheaton Corp.* | 24,014 | 155,851 | ||||||
Valspar Corp. | 8,580 | 155,212 | ||||||
Eastman Chemical Co. | 4,887 | 154,967 | ||||||
Sealed Air Corp. | 10,239 | 152,971 | ||||||
Titanium Metals Corp. | 16,840 | 148,360 | ||||||
Olin Corp. | 7,902 | 142,868 | ||||||
RPM International, Inc. | 10,735 | 142,668 | ||||||
Rock-Tenn Co. — Class A | 4,080 | 139,454 | ||||||
Intrepid Potash, Inc.* | 6,580 | 136,667 | ||||||
Nalco Holding Co. | 11,539 | 133,160 | ||||||
Celanese Corp. | 10,498 | 130,490 | ||||||
Reliance Steel & Aluminum Co. | 6,313 | 125,881 | ||||||
MeadWestvaco Corp. | 10,965 | 122,698 | ||||||
Terra Industries, Inc. | 7,300 | 121,691 | ||||||
Packaging Corporation of America | 8,543 | 114,989 | ||||||
Westlake Chemical Corp. | 6,890 | 112,238 | ||||||
Cytec Industries, Inc. | 4,875 | 103,448 | ||||||
AK Steel Holding Corp. | 10,490 | 97,767 | ||||||
Cabot Corp. | 5,990 | 91,647 | ||||||
Domtar Corp.* | 47,670 | 79,609 | ||||||
Ashland, Inc. | 6,555 | 68,893 | ||||||
Huntsman Corp. | 15,780 | 54,283 | ||||||
Temple-Inland, Inc. | 10,680 | 51,264 | ||||||
Total Common Stocks | ||||||||
(Cost $21,794,945) | 23,340,942 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 2.0% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 469,457 | 469,457 | |||||
Total Repurchase Agreement | ||||||||
(Cost $469,457) | 469,457 | |||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
BASIC MATERIALS FUND
MARKET | ||||||||
VALUE | ||||||||
Total Investments 100.1% | ||||||||
(Cost $22,264,402) | $ | 23,810,399 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.1)% | $ | (21,998 | ) | |||||
Net Assets – 100.0% | $ | 23,788,401 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
BIOTECHNOLOGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.9% | ||||||||
Genentech, Inc.* | 54,536 | $ | 4,521,580 | |||||
Amgen, Inc.* | 67,591 | 3,903,380 | ||||||
Gilead Sciences, Inc.* | 70,436 | 3,602,097 | ||||||
Celgene Corp.* | 41,885 | 2,315,403 | ||||||
Biogen Idec, Inc.* | 32,055 | 1,526,780 | ||||||
Genzyme Corp.* | 22,829 | 1,515,161 | ||||||
Cephalon, Inc.* | 14,901 | 1,147,973 | ||||||
Vertex Pharmaceuticals, Inc.* | 34,646 | 1,052,545 | ||||||
Myriad Genetics, Inc.* | 13,396 | 887,619 | ||||||
Alexion Pharmaceuticals, Inc.* | 21,498 | 778,013 | ||||||
Onyx Pharmaceuticals, Inc.* | 20,800 | 710,528 | ||||||
OSI Pharmaceuticals, Inc.* | 17,722 | 692,044 | ||||||
Cubist Pharmaceuticals, Inc.* | 25,112 | 606,706 | ||||||
BioMarin Pharmaceuticals, Inc.* | 31,230 | 555,894 | ||||||
Isis Pharmaceuticals, Inc.* | 39,060 | 553,871 | ||||||
Regeneron Pharmaceuticals, Inc.* | 29,855 | 548,138 | ||||||
Amylin Pharmaceuticals, Inc.* | 47,063 | 510,633 | ||||||
Martek Biosciences Corp. | 16,162 | 489,870 | ||||||
Alnylam Pharmaceuticals, Inc.* | 19,342 | 478,328 | ||||||
Alkermes, Inc.* | 43,335 | 461,518 | ||||||
United Therapeutics Corp.* | 7,315 | 457,553 | ||||||
Celera Corp.* | 39,531 | 439,980 | ||||||
Acorda Therapeutics, Inc.* | 21,142 | 433,622 | ||||||
Seattle Genetics, Inc.* | 44,681 | 399,448 | ||||||
Theravance, Inc.* | 32,220 | 399,206 | ||||||
Medarex, Inc.* | 70,417 | 392,927 | ||||||
GTx, Inc.* | 22,523 | 379,287 | ||||||
CV Therapeutics, Inc.* | 38,846 | 357,772 | ||||||
Cepheid, Inc.* | 33,635 | 349,131 | ||||||
Genomic Health, Inc.* | 17,784 | 346,432 | ||||||
PDL BioPharma, Inc. | 55,378 | 342,236 | ||||||
Momenta Pharmaceuticals, Inc.* | 27,700 | 321,320 | ||||||
Metabolix, Inc.* | 23,666 | 301,031 | ||||||
Dendreon Corp.* | 63,774 | 292,085 | ||||||
Indevus Pharmaceuticals, Inc.* | 86,876 | 272,791 | ||||||
Arena Pharmaceuticals, Inc.* | 64,115 | 267,359 | ||||||
Enzon Pharmaceuticals, Inc.* | 44,999 | 262,344 | ||||||
InterMune, Inc.* | 24,697 | 261,294 | ||||||
Progenics Pharmaceuticals, Inc.* | 24,889 | 256,606 | ||||||
Incyte Corp.* | 65,306 | 247,510 | ||||||
Savient Pharmaceuticals, Inc.* | 32,173 | 186,282 | ||||||
Human Genome Sciences, Inc.* | 87,791 | 186,117 | ||||||
Rigel Pharmaceuticals, Inc.* | 20,750 | 166,000 | ||||||
Zymogenetics, Inc.* | 55,240 | 165,720 | ||||||
Sangamo Biosciences, Inc.* | 36,220 | 126,046 | ||||||
Facet Biotech Corp.* | 11,073 | 106,190 | ||||||
Total Common Stocks | ||||||||
(Cost $30,765,765) | 34,574,370 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 1.7% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 593,776 | $ | 593,776 | ||||
Total Repurchase Agreement | ||||||||
(Cost $593,776) | 593,776 | |||||||
Total Investments 99.6% | ||||||||
(Cost $31,359,541) | $ | 35,168,146 | ||||||
Other Assets in Excess of | ||||||||
Liabilities – 0.4% | $ | 127,997 | ||||||
Net Assets – 100.0% | $ | 35,296,143 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25 |
SCHEDULE OF INVESTMENTS
December 31, 2008
CONSUMER PRODUCTS FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.2% | ||||||||
Procter & Gamble Co. | 31,511 | $ | 1,948,010 | |||||
Coca-Cola Co. | 33,482 | 1,515,730 | ||||||
Philip Morris International, Inc. | 31,505 | 1,370,783 | ||||||
PepsiCo, Inc. | 24,707 | 1,353,202 | ||||||
Unilever NV | 37,381 | 917,704 | ||||||
Kraft Foods, Inc. | 33,968 | 912,041 | ||||||
Colgate-Palmolive Co. | 12,941 | 886,976 | ||||||
Diageo PLC — SP ADR | 14,593 | 828,007 | ||||||
Archer-Daniels-Midland Co. | 27,424 | 790,634 | ||||||
Altria Group, Inc. | 47,266 | 711,826 | ||||||
General Mills, Inc. | 10,603 | 644,132 | ||||||
Kimberly-Clark Corp. | 12,119 | 639,156 | ||||||
Kroger Co. | 23,216 | 613,135 | ||||||
Kellogg Co. | 12,592 | 552,159 | ||||||
Cadbury PLC — SP ADR | 14,245 | 508,119 | ||||||
Sysco Corp. | 22,131 | 507,685 | ||||||
UST, Inc. | 7,024 | 487,325 | ||||||
Safeway, Inc. | 19,972 | 474,734 | ||||||
Reynolds American, Inc. | 11,701 | 471,667 | ||||||
H.J. Heinz Co. | 12,194 | 458,494 | ||||||
Molson Coors Brewing Co. — Class B | 9,213 | 450,700 | ||||||
Lorillard, Inc. | 7,912 | 445,841 | ||||||
Campbell Soup Co. | 14,583 | 437,636 | ||||||
Avon Products, Inc. | 16,933 | 406,900 | ||||||
Clorox Co. | 7,193 | 399,643 | ||||||
Bunge Ltd. | 7,602 | 393,556 | ||||||
ConAgra Foods, Inc. | 22,638 | 373,527 | ||||||
Coca-Cola Enterprises, Inc. | 29,737 | 357,736 | ||||||
Sara Lee Corp. | 36,517 | 357,501 | ||||||
Hershey Co. | 10,194 | 354,140 | ||||||
Pepsi Bottling Group, Inc. | 13,679 | 307,914 | ||||||
Brown-Forman Corp. — Class B | 5,728 | 294,935 | ||||||
Hansen Natural Corp.* | 8,760 | 293,723 | ||||||
Hormel Foods Corp. | 9,263 | 287,894 | ||||||
Church & Dwight Co., Inc. | 4,877 | 273,697 | ||||||
McCormick & Co., Inc. | 8,442 | 268,962 | ||||||
Constellation Brands, Inc. — Class A* | 16,063 | 253,313 | ||||||
Dr Pepper Snapple Group, Inc.* | 15,290 | 248,462 | ||||||
Estee Lauder Companies, | ||||||||
Inc. — Class A | 7,956 | 246,318 | ||||||
Energizer Holdings, Inc.* | 4,367 | 236,429 | ||||||
SUPERVALU, INC. | 16,081 | 234,783 | ||||||
Dean Foods Co.* | 12,512 | 224,841 | ||||||
J.M. Smucker Co. | 5,030 | 218,101 | ||||||
Flowers Foods, Inc. | 8,610 | 209,740 | ||||||
Tyson Foods, Inc. — Class A | 23,409 | 205,063 | ||||||
Total Common Stocks | ||||||||
(Cost $22,048,822) | 24,372,874 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 1.8% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 455,957 | $ | 455,957 | ||||
Total Repurchase Agreement | ||||||||
(Cost $455,957) | 455,957 | |||||||
Total Investments 100.0% | ||||||||
(Cost $22,504,779) | $ | 24,828,831 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.0% | $ | 3,877 | ||||||
Net Assets – 100.0% | $ | 24,832,708 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. ADR — American Depository Receipt. |
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
ELECTRONICS FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.2% | ||||||||
Intel Corp. | 13,882 | $ | 203,510 | |||||
Taiwan Semiconductor Manufacturing Company Ltd. — SP ADR | 18,353 | 144,989 | ||||||
Texas Instruments, Inc. | 6,162 | 95,634 | ||||||
Applied Materials, Inc. | 7,580 | 76,785 | ||||||
ASML Holding NV | 4,012 | 72,497 | ||||||
Broadcom Corp. — Class A* | 3,991 | 67,727 | ||||||
Altera Corp. | 3,098 | 51,768 | ||||||
Analog Devices, Inc. | 2,639 | 50,194 | ||||||
Nvidia Corp.* | 6,214 | 50,147 | ||||||
STMicroelectronics NV — SP ADR | 7,311 | 48,618 | ||||||
Linear Technology Corp. | 2,181 | 48,244 | ||||||
Xilinx, Inc. | 2,685 | 47,847 | ||||||
Marvell Technology Group Ltd.* | 6,591 | 43,962 | ||||||
KLA-Tencor Corp. | 1,967 | 42,861 | ||||||
Rambus, Inc.* | 2,543 | 40,485 | ||||||
Microchip Technology, Inc. | 1,957 | 38,220 | ||||||
Lam Research Corp.* | 1,718 | 36,559 | ||||||
MEMC Electronic Materials, Inc.* | 2,258 | 32,244 | ||||||
National Semiconductor Corp. | 3,011 | 30,321 | ||||||
LSI Logic Corp.* | 9,009 | 29,640 | ||||||
Micron Technology, Inc.* | 9,599 | 25,341 | ||||||
Varian Semiconductor Equipment Associates, Inc.* | 1,350 | 24,462 | ||||||
Atmel Corp.* | 7,804 | 24,426 | ||||||
Silicon Laboratories, Inc.* | 981 | 24,309 | ||||||
Cree, Inc.* | 1,487 | 23,599 | ||||||
Hittite Microwave Corp.* | 789 | 23,244 | ||||||
Novellus Systems, Inc.* | 1,858 | 22,928 | ||||||
International Rectifier Corp.* | 1,668 | 22,518 | ||||||
PMC — Sierra, Inc.* | 4,489 | 21,817 | ||||||
ON Semiconductor Corp.* | 6,381 | 21,695 | ||||||
Integrated Device Technology, Inc.* | 3,766 | 21,127 | ||||||
Intersil Corp. — Class A | 2,200 | 20,218 | ||||||
Skyworks Solutions, Inc.* | 3,642 | 20,177 | ||||||
Cypress Semiconductor Corp.* | 4,413 | 19,726 | ||||||
Semtech Corp.* | 1,741 | 19,621 | ||||||
Atheros Communications, Inc.* | 1,347 | 19,276 | ||||||
Advanced Micro Devices, Inc.* | 8,812 | 19,034 | ||||||
FEI Co.* | 988 | 18,634 | ||||||
MKS Instruments, Inc.* | 1,234 | 18,251 | ||||||
Cymer, Inc.* | 831 | 18,207 | ||||||
Formfactor, Inc.* | 1,241 | 18,119 | ||||||
Microsemi Corp.* | 1,417 | 17,911 | ||||||
Power Integrations, Inc. | 889 | 17,673 | ||||||
Cabot Microelectronics Corp.* | 663 | 17,284 | ||||||
Teradyne, Inc.* | 3,888 | 16,407 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Fairchild Semiconductor | ||||||||
International, Inc.* | 3,170 | $ | 15,501 | |||||
Tessera Technologies, Inc.* | 1,283 | 15,242 | ||||||
Infineon Technologies | ||||||||
AG — SP ADR* | 10,576 | 14,806 | ||||||
Amkor Technology, Inc.* | 4,691 | 10,226 | ||||||
Total Common Stocks | ||||||||
(Cost $1,593,473) | 1,824,031 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 2.2% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 41,352 | 41,352 | |||||
Total Repurchase Agreement | ||||||||
(Cost $41,352) | 41,352 | |||||||
Total Investments 99.4% | ||||||||
(Cost $1,634,825) | $ | 1,865,383 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.6% | $ | 11,763 | ||||||
Net Assets – 100.0% | $ | 1,877,146 | ||||||
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27 |
SCHEDULE OF INVESTMENTS
December 31, 2008
ENERGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.0% | ||||||||
Exxon Mobil Corp. | 35,267 | $ | 2,815,365 | |||||
Chevron Corp. | 22,807 | 1,687,034 | ||||||
BP PLC — SP ADR | 34,171 | 1,597,153 | ||||||
Royal Dutch Shell PLC — SP ADR | 24,424 | 1,293,007 | ||||||
ConocoPhillips | 21,524 | 1,114,943 | ||||||
Occidental Petroleum Corp. | 16,425 | 985,336 | ||||||
Petroleo Brasileiro SA | 36,753 | 900,081 | ||||||
Schlumberger Ltd. | 17,674 | 748,140 | ||||||
Devon Energy Corp. | 10,136 | 666,037 | ||||||
Apache Corp. | 8,530 | 635,741 | ||||||
XTO Energy, Inc. | 16,848 | 594,229 | ||||||
Anadarko Petroleum Corp. | 15,204 | 586,114 | ||||||
Canadian Natural Resources Ltd. | 14,080 | 562,918 | ||||||
Marathon Oil Corp. | 20,252 | 554,095 | ||||||
Hess Corp. | 9,837 | 527,657 | ||||||
EOG Resources, Inc. | 7,810 | 519,990 | ||||||
Halliburton Co. | 26,703 | 485,461 | ||||||
Nexen, Inc. | 25,638 | 450,716 | ||||||
Valero Energy Corp. | 20,365 | 440,699 | ||||||
Talisman Energy, Inc. | 41,074 | 410,329 | ||||||
Southwestern Energy Co.* | 13,880 | 402,104 | ||||||
Tenaris SA — SP ADR | 19,040 | 399,459 | ||||||
Noble Energy, Inc. | 8,035 | 395,483 | ||||||
Transocean Ltd.* | 8,079 | 381,733 | ||||||
National-Oilwell Varco, Inc.* | 15,575 | 380,653 | ||||||
Baker Hughes, Inc. | 11,519 | 369,414 | ||||||
Spectra Energy Corp. | 23,168 | 364,664 | ||||||
Sunoco, Inc. | 8,086 | 351,418 | ||||||
Murphy Oil Corp. | 7,909 | 350,764 | ||||||
Chesapeake Energy Corp. | 21,586 | 349,046 | ||||||
Cameco Corp. | 19,923 | 343,672 | ||||||
Williams Companies, Inc. | 23,459 | 339,686 | ||||||
CNX Gas Corp.* | 12,239 | 334,125 | ||||||
Diamond Offshore Drilling, Inc. | 5,400 | 318,276 | ||||||
Range Resources Corp. | 8,945 | 307,619 | ||||||
Weatherford International Ltd.* | 26,619 | 288,018 | ||||||
PetroHawk Energy Corp.* | 18,280 | 285,716 | ||||||
El Paso Corp. | 36,118 | 282,804 | ||||||
Peabody Energy Corp. | 12,430 | 282,782 | ||||||
Consol Energy, Inc. | 9,435 | 269,652 | ||||||
Noble Corp. | 11,934 | 263,622 | ||||||
Ultra Petroleum Corp.* | 7,522 | 259,584 | ||||||
Cameron International Corp.* | 11,332 | 232,306 | ||||||
BJ Services Co. | 19,702 | 229,922 | ||||||
Continental Resources, Inc.* | 10,790 | 223,461 | ||||||
Smith International, Inc. | 9,656 | 221,026 | ||||||
ENSCO International, Inc. | 7,770 | 220,590 | ||||||
Cabot Oil & Gas Corp. | 7,930 | 206,180 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Plains Exploration & Production Co.* | 8,847 | $ | 205,604 | |||||
Nabors Industries Ltd.* | 17,006 | 203,562 | ||||||
Denbury Resources, Inc.* | 18,514 | 202,173 | ||||||
Newfield Exploration Co.* | 9,879 | 195,110 | ||||||
Pride International, Inc.* | 12,047 | 192,511 | ||||||
Tidewater, Inc. | 4,568 | 183,953 | ||||||
Concho Resources, Inc.* | 7,910 | 180,506 | ||||||
Helmerich & Payne, Inc. | 7,693 | 175,016 | ||||||
Frontline Ltd. | 5,892 | 174,462 | ||||||
FMC Technologies, Inc.* | 7,298 | 173,911 | ||||||
IHS Inc.* | 4,563 | 170,747 | ||||||
Arch Coal, Inc. | 9,990 | 162,737 | ||||||
Cimarex Energy Co. | 6,022 | 161,269 | ||||||
Patterson-UTI Energy, Inc. | 14,004 | 161,186 | ||||||
Oceaneering International, Inc.* | 5,321 | 155,054 | ||||||
Rowan Companies, Inc. | 9,721 | 154,564 | ||||||
Southern Union Co. | 11,250 | 146,700 | ||||||
Whiting Petroleum Corp.* | 4,070 | 136,182 | ||||||
Dresser-Rand Group, Inc.* | 7,747 | 133,636 | ||||||
Pioneer Natural Resources Co. | 7,767 | 125,670 | ||||||
Forest Oil Corp.* | 7,531 | 124,186 | ||||||
Massey Energy Co. | 8,010 | 110,458 | ||||||
Atwood Oceanics, Inc.* | 6,054 | 92,505 | ||||||
Alpha Natural Resources, Inc.* | 5,643 | 91,360 | ||||||
SandRidge Energy, Inc.* | 14,731 | 90,596 | ||||||
Walter Industries, Inc. | 5,050 | 88,425 | ||||||
Total Common Stocks | ||||||||
(Cost $26,358,753) | 30,220,907 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 0.8% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | 239,327 | |||||||
Total Repurchase Agreement | ||||||||
(Cost $239,327) | $ | 239,327 | 239,327 | |||||
Total Investments 98.8% | ||||||||
(Cost $26,598,080) | $ | 30,460,234 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 1.2% | $ | 382,839 | ||||||
Net Assets – 100.0% | $ | 30,843,073 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
ENERGY SERVICES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.3% | ||||||||
Schlumberger Ltd. | 48,905 | $ | 2,070,149 | |||||
Halliburton Co. | 73,898 | 1,343,466 | ||||||
Tenaris SA — SP ADR | 52,699 | 1,105,625 | ||||||
Transocean Ltd.* | 22,354 | 1,056,226 | ||||||
National-Oilwell Varco, Inc.* | 43,096 | 1,053,266 | ||||||
Baker Hughes, Inc. | 31,883 | 1,022,488 | ||||||
Diamond Offshore Drilling, Inc. | 14,931 | 880,033 | ||||||
Weatherford International Ltd.* | 73,674 | 797,153 | ||||||
Noble Corp. | 33,034 | 729,721 | ||||||
Cameron International Corp.* | 31,367 | 643,023 | ||||||
BJ Services Co. | 54,524 | 636,295 | ||||||
Smith International, Inc. | 26,724 | 611,712 | ||||||
ENSCO International, Inc. | 21,500 | 610,385 | ||||||
Nabors Industries Ltd.* | 47,048 | 563,165 | ||||||
Pride International, Inc.* | 33,348 | 532,901 | ||||||
Tidewater, Inc. | 12,644 | 509,174 | ||||||
Helmerich & Payne, Inc. | 21,279 | 484,097 | ||||||
FMC Technologies, Inc.* | 20,198 | 481,318 | ||||||
IHS Inc.* | 12,617 | 472,128 | ||||||
Patterson-UTI Energy, Inc. | 38,752 | 446,036 | ||||||
SEACOR Holdings, Inc.* | 6,633 | 442,089 | ||||||
Oceaneering International, Inc.* | 14,724 | 429,057 | ||||||
Rowan Companies, Inc. | 26,897 | 427,662 | ||||||
Exterran Holdings, Inc.* | 18,822 | 400,909 | ||||||
Dresser-Rand Group, Inc.* | 21,452 | 370,047 | ||||||
Unit Corp.* | 13,348 | 356,659 | ||||||
Superior Energy Services* | 22,063 | 351,464 | ||||||
RPC, Inc. | 34,535 | 337,062 | ||||||
Oil States International, Inc.* | 17,046 | 318,590 | ||||||
CARBO Ceramics, Inc. | 8,487 | 301,543 | ||||||
Dril-Quip, Inc.* | 13,024 | 267,122 | ||||||
Cal Dive International, Inc.* | 40,577 | 264,156 | ||||||
Atwood Oceanics, Inc.* | 16,772 | 256,276 | ||||||
Complete Production Services, Inc.* | 28,113 | 229,121 | ||||||
Precision Drilling Trust | 26,514 | 222,454 | ||||||
Helix Energy Solutions Group, Inc.* | 30,221 | 218,800 | ||||||
Total Common Stocks | ||||||||
(Cost $20,857,277) | 21,241,372 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 1.5% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 320,485 | $ | 320,485 | ||||
Total Repurchase Agreement | ||||||||
(Cost $320,485) | 320,485 | |||||||
Total Investments 99.8% | ||||||||
(Cost $21,177,762) | $ | 21,561,857 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.2% | $ | 35,668 | ||||||
Net Assets – 100.0% | $ | 21,597,525 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29 |
SCHEDULE OF INVESTMENTS
December 31, 2008
FINANCIAL SERVICES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.1% | ||||||||
JPMorgan Chase & Co. | 6,478 | $ | 204,252 | |||||
Wells Fargo & Co. | 6,578 | 193,919 | ||||||
HSBC Holdings PLC — SP ADR | 3,707 | 180,420 | ||||||
Bank of America Corp. | 9,104 | 128,184 | ||||||
AXA — SP ADR | 5,650 | 126,955 | ||||||
U.S. Bancorp | 4,928 | 123,249 | ||||||
Travelers Companies, Inc. | 2,649 | 119,735 | ||||||
Bank of New York Mellon Corp. | 3,796 | 107,541 | ||||||
UBS AG — SP ADR* | 7,172 | 102,560 | ||||||
Goldman Sachs Group, Inc. | 1,190 | 100,424 | ||||||
MetLife, Inc. | 2,856 | 99,560 | ||||||
AFLAC, Inc. | 2,123 | 97,318 | ||||||
Chubb Corp. | 1,867 | 95,217 | ||||||
Credit Suisse Group AG — SP ADR | 3,366 | 95,123 | ||||||
Allstate Corp. | 2,684 | 87,928 | ||||||
Aon Corp. | 1,740 | 79,483 | ||||||
Charles Schwab Corp. | 4,904 | 79,298 | ||||||
American Express Co. | 4,245 | 78,745 | ||||||
PNC Financial Services Group, Inc. | 1,552 | 76,048 | ||||||
Citigroup, Inc. | 11,319 | 75,950 | ||||||
Franklin Resources, Inc. | 1,185 | 75,579 | ||||||
Public Storage | 947 | 75,286 | ||||||
Blackrock, Inc. | 556 | 74,587 | ||||||
Morgan Stanley | 4,607 | 73,896 | ||||||
BB&T Corp. | 2,640 | 72,494 | ||||||
State Street Corp. | 1,828 | 71,895 | ||||||
Barclays PLC — SP ADR | 7,220 | 70,756 | ||||||
Marsh & McLennan Companies, Inc. | 2,836 | 68,830 | ||||||
Wachovia Corp. | 12,240 | 67,810 | ||||||
Loews Corp. | 2,374 | 67,065 | ||||||
Annaly Capital Management, Inc. | 4,195 | 66,575 | ||||||
Capital One Financial Corp. | 2,076 | 66,204 | ||||||
Progressive Corp. | 4,417 | 65,416 | ||||||
Merrill Lynch & Co., Inc. | 5,604 | 65,231 | ||||||
Northern Trust Corp. | 1,229 | 64,080 | ||||||
Simon Property Group, Inc. | 1,165 | 61,896 | ||||||
Hudson City Bancorp, Inc. | 3,761 | 60,026 | ||||||
TD Ameritrade Holding Corp.* | 4,157 | 59,237 | ||||||
Vornado Realty Trust | 977 | 58,962 | ||||||
T. Rowe Price Group, Inc. | 1,611 | 57,094 | ||||||
W.R. Berkley Corp. | 1,829 | 56,699 | ||||||
CME Group, Inc. | 271 | 56,398 | ||||||
Prudential Financial, Inc. | 1,856 | 56,163 | ||||||
SunTrust Banks, Inc. | 1,860 | 54,944 | ||||||
People’s United Financial, Inc. | 3,047 | 54,328 | ||||||
Equity Residential | 1,813 | 54,064 | ||||||
NYSE Euronext | 1,957 | 53,583 | ||||||
Brookfield Asset Management, Inc. — Class A | 3,440 | 52,529 | ||||||
Fidelity National Financial, Inc. — Class A | 2,918 | 51,795 | ||||||
Unum Group | 2,764 | 51,410 | ||||||
HCP, Inc. | 1,838 | 51,041 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Cincinnati Financial Corp. | 1,719 | $ | 49,971 | |||||
IntercontinentalExchange, Inc.* | 606 | 49,959 | ||||||
Principal Financial Group, Inc. | 2,147 | 48,458 | ||||||
PartnerRe Ltd. | 650 | 46,326 | ||||||
Plum Creek Timber Co., Inc. (REIT) | 1,329 | 46,169 | ||||||
Invesco Ltd. | 3,164 | 45,688 | ||||||
Everest Re Group Ltd. | 600 | 45,684 | ||||||
Arch Capital Group Ltd.* | 650 | 45,565 | ||||||
Boston Properties, Inc. | 825 | 45,375 | ||||||
Axis Capital Holdings Ltd. | 1,548 | 45,078 | ||||||
Odyssey Re Holdings Corp. | 870 | 45,075 | ||||||
M&T Bank Corp. | 774 | 44,435 | ||||||
TFS Financial Corp | 3,329 | 42,944 | ||||||
Ventas, Inc. | 1,257 | 42,197 | ||||||
Nasdaq Stock Market, Inc.* | 1,700 | 42,007 | ||||||
Capitol Federal Financial | 920 | 41,952 | ||||||
Health Care REIT, Inc. | 989 | 41,736 | ||||||
Ameriprise Financial, Inc. | 1,774 | 41,441 | ||||||
RenaissanceRe Holdings Ltd. | 800 | 41,248 | ||||||
Regions Financial Corp. | 5,172 | 41,169 | ||||||
HCC Insurance Holdings, Inc. | 1,539 | 41,168 | ||||||
Torchmark Corp. | 910 | 40,677 | ||||||
Discover Financial Services | 4,229 | 40,302 | ||||||
CNA Financial Corp. | 2,436 | 40,048 | ||||||
Moody’s Corp. | 1,968 | 39,537 | ||||||
AvalonBay Communities, Inc. | 650 | 39,377 | ||||||
Willis Group Holdings Ltd. | 1,579 | 39,286 | ||||||
Commerce Bancshares, Inc. | 870 | 38,237 | ||||||
Brown & Brown, Inc. | 1,813 | 37,892 | ||||||
First American Corp. | 1,310 | 37,846 | ||||||
SLM Corp.* | 4,223 | 37,585 | ||||||
KIMCO Realty Corp. | 2,055 | 37,565 | ||||||
Federal Realty Investment Trust | 605 | 37,558 | ||||||
Regency Centers Corp. | 797 | 37,220 | ||||||
Old Republic International Corp. | 3,114 | 37,119 | ||||||
New York Community Bancorp, Inc. | 3,091 | 36,968 | ||||||
Host Hotels & Resorts, Inc. | 4,872 | 36,881 | ||||||
Lincoln National Corp. | 1,926 | 36,286 | ||||||
KeyCorp | 4,250 | 36,210 | ||||||
Fifth Third Bancorp | 4,378 | 36,162 | ||||||
Cullen/Frost Bankers, Inc. | 701 | 35,527 | ||||||
Associated Banc-Corp. | 1,697 | 35,518 | ||||||
Valley National Bancorp | 1,738 | 35,195 | ||||||
Legg Mason, Inc. | 1,600 | 35,056 | ||||||
SEI Investments Co. | 2,192 | 34,436 | ||||||
American Financial Group, Inc. | 1,490 | 34,091 | ||||||
Nationwide Health Properties, Inc. | 1,162 | 33,373 | ||||||
Leucadia National Corp.* | 1,682 | 33,304 | ||||||
Marshall & Ilsley Corp. | 2,441 | 33,295 | ||||||
Arthur J. Gallagher & Co. | 1,274 | 33,009 | ||||||
Assurant, Inc. | 1,100 | 33,000 | ||||||
Nationwide Financial Services, Inc. | 630 | 32,892 | ||||||
Markel Corp.* | 110 | 32,890 | ||||||
Hanover Insurance Group, Inc. | 764 | 32,829 | ||||||
Hartford Financial Services Group, Inc. | 1,999 | 32,824 |
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
FINANCIAL SERVICES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Transatlantic Holdings, Inc. | 810 | $ | 32,449 | |||||
American International Group, Inc. | 20,504 | 32,191 | ||||||
Realty Income Corp. | 1,380 | 31,947 | ||||||
Synovus Financial Corp. | 3,831 | 31,797 | ||||||
BOK Financial Corp. | 784 | 31,674 | ||||||
Alleghany Corp.* | 112 | 31,584 | ||||||
Mercury General Corp. | 680 | 31,273 | ||||||
National City Corp. | 17,221 | 31,170 | ||||||
Aspen Insurance Holdings Ltd. | 1,280 | 31,040 | ||||||
Huntington Bancshares, Inc. | 3,983 | 30,510 | ||||||
Brookfield Properties Corp. | 3,909 | 30,217 | ||||||
City National Corp. | 620 | 30,194 | ||||||
First Horizon National Corp. | 2,853 | 30,153 | ||||||
Stancorp Financial Group, Inc. | 720 | 30,074 | ||||||
First Niagara Financial Group, Inc. | 1,856 | 30,012 | ||||||
Greenhill & Company, Inc. | 430 | 30,001 | ||||||
Rayonier, Inc. | 955 | 29,939 | ||||||
Eaton Vance Corp. | 1,424 | 29,918 | ||||||
Comerica, Inc. | 1,489 | 29,557 | ||||||
White Mountains Insurance Group Ltd. | 110 | 29,382 | ||||||
Erie Indemnity Co. — Class A | 780 | 29,351 | ||||||
Digital Realty Trust, Inc. | 890 | 29,237 | ||||||
Senior Housing Properties Trust | 1,620 | 29,030 | ||||||
UMB Financial Corp. | 590 | 28,993 | ||||||
Bank of Hawaii Corp. | 641 | 28,954 | ||||||
ProLogis | 2,065 | 28,683 | ||||||
Highwoods Properties, Inc. | 1,030 | 28,181 | ||||||
American National Insurance Co. | 380 | 28,017 | ||||||
Jefferies Group, Inc. | 1,990 | 27,979 | ||||||
ProAssurance Corp.* | 530 | 27,973 | ||||||
Liberty Property Trust | �� | 1,201 | 27,419 | |||||
Lazard Ltd. — Class A | 920 | 27,361 | ||||||
BancorpSouth, Inc. | 1,170 | 27,331 | ||||||
Sovereign Bancorp, Inc.* | 9,167 | 27,318 | ||||||
FirstMerit Corp. | 1,320 | 27,179 | ||||||
The St. Joe Co.* | 1,110 | 26,995 | ||||||
AMB Property Corp. | 1,145 | 26,816 | ||||||
Zions Bancorporation | 1,090 | 26,716 | ||||||
Fulton Financial Corp. | 2,633 | 25,329 | ||||||
Essex Property Trust, Inc. | 330 | 25,328 | ||||||
Mack-Cali Realty Corp. | 1,024 | 25,088 | ||||||
Camden Property Trust | 790 | 24,759 | ||||||
Raymond James Financial, Inc. | 1,426 | 24,427 | ||||||
Astoria Financial Corp. | 1,480 | 24,390 | ||||||
Weingarten Realty Investors | 1,172 | 24,249 | ||||||
Alexandria Real Estate Equities, Inc. | 400 | 24,136 | ||||||
International Bancshares Corp. | 1,096 | 23,926 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Washington Real Estate Investment Trust | 840 | $ | 23,772 | |||||
UDR, Inc. | 1,723 | 23,760 | ||||||
TCF Financial Corp. | 1,701 | 23,236 | ||||||
Wilmington Trust Corp. | 1,030 | 22,907 | ||||||
Douglas Emmett, Inc. | 1,745 | 22,790 | ||||||
Affiliated Managers Group, Inc.* | 531 | 22,260 | ||||||
Federated Investors, Inc. — Class B | 1,301 | 22,065 | ||||||
Duke Realty Corp. | 1,988 | 21,788 | ||||||
BRE Properties, Inc. — Class A | 770 | 21,545 | ||||||
Apollo Investment Corp. | 2,256 | 21,003 | ||||||
Popular, Inc. | 4,043 | 20,862 | ||||||
Taubman Centers, Inc. | 796 | 20,266 | ||||||
SL Green Realty Corp. | 739 | 19,140 | ||||||
Janus Capital Group, Inc. | 2,323 | 18,654 | ||||||
Potlatch Corp. | 640 | 16,646 | ||||||
MBIA, Inc.* | 4,060 | 16,524 | ||||||
Macerich Co. | 895 | 16,253 | ||||||
CapitalSource, Inc. | 3,505 | 16,193 | ||||||
Apartment Investment & Management Co. — Class A | 1,300 | 15,016 | ||||||
Genworth Financial, Inc. — Class A | 5,300 | 14,999 | ||||||
SVB Financial Group* | 530 | 13,902 | ||||||
XL Capital Ltd. | 3,446 | 12,750 | ||||||
Forest City Enterprises, Inc. — Class A | 1,314 | 8,804 | ||||||
Developers Diversified Realty Corp. | 1,644 | 8,023 | ||||||
American Capital Ltd. | 2,405 | 7,792 | ||||||
Total Common Stocks | ||||||||
(Cost $7,985,393) | 8,142,619 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.6% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 136,482 | 136,482 | |||||
Total Repurchase Agreement | ||||||||
(Cost $136,482) | 136,482 | |||||||
Total Investments 99.7% | ||||||||
(Cost $8,121,875) | $ | 8,279,101 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.3% | $ | 27,797 | ||||||
Net Assets – 100.0% | $ | 8,306,898 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. | ||
REIT — Real Estate Investment Trust. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31 |
SCHEDULE OF INVESTMENTS
December 31, 2008
HEALTH CARE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.3% | ||||||||
Johnson & Johnson, Inc. | 24,848 | $ | 1,486,656 | |||||
Novartis AG — SP ADR | 27,650 | 1,375,864 | ||||||
Pfizer, Inc. | 74,583 | 1,320,865 | ||||||
Teva Pharmaceutical Industries Ltd. — SP ADR | 28,658 | 1,219,971 | ||||||
Sanofi-Aventis — SP ADR | 36,058 | 1,159,625 | ||||||
GlaxoSmithKline PLC — SP ADR | 30,953 | 1,153,618 | ||||||
Genentech, Inc.* | 13,732 | 1,138,520 | ||||||
Abbott Laboratories | 19,946 | 1,064,518 | ||||||
Amgen, Inc.* | 17,028 | 983,367 | ||||||
Merck & Company, Inc. | 32,246 | 980,278 | ||||||
AstraZeneca PLC — SP ADR | 22,472 | 922,026 | ||||||
Gilead Sciences, Inc.* | 17,740 | 907,224 | ||||||
Bristol-Myers Squibb Co. | 38,682 | 899,356 | ||||||
Wyeth | 23,719 | 889,700 | ||||||
Eli Lilly & Co. | 21,452 | 863,872 | ||||||
UnitedHealth Group, Inc. | 27,366 | 727,936 | ||||||
Schering-Plough Corp. | 39,636 | 675,001 | ||||||
Baxter International, Inc. | 12,078 | 647,260 | ||||||
Medtronic, Inc. | 19,137 | 601,285 | ||||||
Celgene Corp.* | 10,552 | 583,315 | ||||||
Medco Health Solutions, Inc.* | 13,122 | 549,943 | ||||||
WellPoint, Inc.* | 12,803 | 539,390 | ||||||
Genzyme Corp.* | 7,450 | 494,457 | ||||||
Alcon, Inc. — SP ADR | 5,542 | 494,291 | ||||||
Becton, Dickinson & Co. | 6,882 | 470,660 | ||||||
Biogen Idec, Inc.* | 9,534 | 454,104 | ||||||
Covidien Ltd. | 12,205 | 442,309 | ||||||
Express Scripts, Inc.* | 7,646 | 420,377 | ||||||
Quest Diagnostics, Inc. | 7,938 | 412,062 | ||||||
Stryker Corp. | 9,865 | 394,107 | ||||||
Allergan, Inc. | 9,770 | 393,926 | ||||||
Aetna, Inc. | 13,782 | 392,787 | ||||||
Thermo Fisher Scientific, Inc.* | 11,518 | 392,418 | ||||||
Cardinal Health, Inc. | 11,193 | 385,823 | ||||||
St. Jude Medical, Inc.* | 11,316 | 372,975 | ||||||
Boston Scientific Corp.* | 47,760 | 369,662 | ||||||
Shire PLC — SP ADR | 8,081 | 361,867 | ||||||
McKesson Corp. | 9,295 | 359,995 | ||||||
C.R. Bard, Inc. | 4,199 | 353,808 | ||||||
Forest Laboratories, Inc.* | 13,512 | 344,151 | ||||||
Laboratory Corporation of | ||||||||
America Holdings* | 5,199 | 334,868 | ||||||
AmerisourceBergen Corp. | 8,531 | 304,215 | ||||||
Zimmer Holdings, Inc.* | 7,525 | 304,161 | ||||||
Humana, Inc.* | 7,964 | 296,898 | ||||||
Cephalon, Inc.* | 3,808 | 293,368 | ||||||
DaVita, Inc.* | 5,424 | 268,868 | ||||||
Vertex Pharmaceuticals, Inc.* | 8,850 | 268,863 | ||||||
Life Technologies Corp.* | 10,559 | 246,130 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Warner Chilcott Ltd.* | 16,321 | $ | 236,655 | |||||
DENTSPLY International, Inc. | 8,126 | 229,478 | ||||||
Hospira, Inc.* | 8,555 | 229,445 | ||||||
Omnicare, Inc. | 8,260 | 229,298 | ||||||
Varian Medical Systems, Inc.* | 6,361 | 222,889 | ||||||
Cerner Corp.* | 5,780 | 222,241 | ||||||
Edwards Lifesciences Corp.* | 3,890 | 213,756 | ||||||
Pharmaceutical Product Development, Inc. | 7,120 | 206,551 | ||||||
ResMed, Inc.* | 5,500 | 206,140 | ||||||
Hologic, Inc.* | 15,322 | 200,259 | ||||||
Waters Corp.* | 5,460 | 200,109 | ||||||
Illumina, Inc.* | 7,630 | 198,762 | ||||||
Alexion Pharmaceuticals, Inc.* | 5,490 | 198,683 | ||||||
Perrigo Co. | 6,130 | 198,060 | ||||||
Intuitive Surgical, Inc.* | 1,543 | 195,946 | ||||||
Henry Schein, Inc.* | 5,272 | 193,430 | ||||||
IMS Health, Inc. | 12,690 | 192,380 | ||||||
CIGNA Corp. | 11,281 | 190,085 | ||||||
Millipore Corp.* | 3,544 | 182,587 | ||||||
Beckman Coulter, Inc. | 3,810 | 167,411 | ||||||
Elan Corp. PLC -SP ADR* | 26,410 | 158,460 | ||||||
Covance, Inc.* | 3,418 | 157,331 | ||||||
Patterson Companies, Inc.* | 8,295 | 155,531 | ||||||
Coventry Health Care, Inc.* | 8,682 | 129,188 | ||||||
Charles River Laboratories International, Inc.* | 4,577 | 119,917 | ||||||
Total Common Stocks | ||||||||
(Cost $33,236,735) | 35,151,332 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 2.0% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 730,051 | 730,051 | |||||
Total Repurchase Agreement | ||||||||
(Cost $730,051) | 730,051 | |||||||
Total Investments 100.3% | ||||||||
(Cost $33,966,786) | $ | 35,881,383 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.3)% | $ | (103,791 | ) | |||||
Net Assets – 100.0% | $ | 35,777,592 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
32 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
INTERNET FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.4% | ||||||||
Cisco Systems, Inc.* | 14,989 | $ | 244,321 | |||||
Google, Inc. — Class A* | 683 | 210,125 | ||||||
Qualcomm, Inc. | 5,366 | 192,264 | ||||||
Time Warner, Inc. | 15,545 | 156,383 | ||||||
Amazon.com, Inc.* | 2,323 | 119,123 | ||||||
Yahoo!, Inc.* | 8,804 | 107,409 | ||||||
Research In Motion Ltd.* | 2,579 | 104,656 | ||||||
eBay, Inc.* | 7,202 | 100,540 | ||||||
Symantec Corp.* | 6,335 | 85,649 | ||||||
Juniper Networks, Inc.* | 4,647 | 81,369 | ||||||
Broadcom Corp. — Class A* | 4,542 | 77,078 | ||||||
Qwest Communications International, Inc. | 20,449 | 74,434 | ||||||
Intuit, Inc.* | 2,987 | 71,061 | ||||||
McAfee, Inc.* | 1,868 | 64,577 | ||||||
BMC Software, Inc.* | 2,257 | 60,736 | ||||||
Check Point Software Technologies Ltd.* | 2,803 | 53,229 | ||||||
priceline.com, Inc.* | 646 | 47,578 | ||||||
VeriSign, Inc.* | 2,393 | 45,658 | ||||||
Red Hat, Inc.* | 3,188 | 42,145 | ||||||
Akamai Technologies, Inc.* | 2,761 | 41,663 | ||||||
HLTH Corp.* | 3,863 | 40,407 | ||||||
Netflix, Inc.* | 1,338 | 39,993 | ||||||
IAC/InterActiveCorp* | 2,433 | 38,271 | ||||||
F5 Networks, Inc.* | 1,670 | 38,176 | ||||||
Sun Microsystems, Inc.* | 9,719 | 37,127 | ||||||
Equinix, Inc.* | 669 | 35,584 | ||||||
Baidu.com — SP ADR* | 268 | 34,993 | ||||||
Sohu.com, Inc.* | 704 | 33,327 | ||||||
Expedia, Inc.* | 3,983 | 32,820 | ||||||
Monster Worldwide, Inc.* | 2,528 | 30,564 | ||||||
Total Common Stocks | ||||||||
(Cost $1,701,211) | 2,341,260 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 2.2% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 53,290 | $ | 53,290 | ||||
Total Repurchase Agreement (Cost $53,290) | 53,290 | |||||||
Total Investments 99.6% (Cost $1,754,501) | $ | 2,394,550 | ||||||
Other Assets in Excess of Liabilities – 0.4% | $ | 10,161 | ||||||
Net Assets – 100.0% | $ | 2,404,711 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 33 |
SCHEDULE OF INVESTMENTS
December 31, 2008
LEISURE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.0% | ||||||||
McDonald’s Corp. | 2,380 | $ | 148,012 | |||||
Walt Disney Co. | 4,540 | 103,013 | ||||||
Time Warner, Inc. | 9,816 | 98,749 | ||||||
Yum! Brands, Inc. | 2,143 | 67,504 | ||||||
News Corp. — Class A | 7,205 | 65,493 | ||||||
Carnival Corp. | 2,409 | 58,587 | ||||||
Viacom, Inc. — Class B* | 2,790 | 53,177 | ||||||
Activision Blizzard Inc.* | 5,347 | 46,198 | ||||||
Marriott International, Inc. — Class A | 2,282 | 44,385 | ||||||
Mattel, Inc. | 2,623 | 41,968 | ||||||
Tim Hortons, Inc. | 1,446 | 41,703 | ||||||
Starbucks Corp.* | 4,271 | 40,404 | ||||||
Darden Restaurants, Inc. | 1,326 | 37,367 | ||||||
Hasbro, Inc. | 1,152 | 33,604 | ||||||
Burger King Holdings, Inc. | 1,376 | 32,859 | ||||||
Wynn Resorts Ltd.* | 703 | 29,709 | ||||||
MGM MIRAGE* | 2,117 | 29,130 | ||||||
International Game Technology, Inc. | 2,431 | 28,905 | ||||||
Electronic Arts, Inc.* | 1,742 | 27,942 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 1,502 | 26,886 | ||||||
Choice Hotels International, Inc. | 881 | 26,483 | ||||||
Marvel Entertainment, Inc.* | 854 | 26,260 | ||||||
Penn National Gaming, Inc.* | 1,165 | 24,908 | ||||||
Royal Caribbean Cruises Ltd. | 1,789 | 24,599 | ||||||
Panera Bread Co. — Class A* | 438 | 22,881 | ||||||
DreamWorks Animation SKG, Inc. — Class A* | 897 | 22,658 | ||||||
Scientific Games Corp. — Class A* | 1,213 | 21,276 | ||||||
Bally Technologies, Inc.* | 878 | 21,098 | ||||||
Jack in the Box, Inc.* | 930 | 20,544 | ||||||
WMS Industries, Inc.* | 760 | 20,444 | ||||||
Brinker International, Inc. | 1,566 | 16,506 | ||||||
Eastman Kodak Co. | 2,475 | 16,285 | ||||||
Las Vegas Sands Corp.* | 2,728 | 16,177 | ||||||
Vail Resorts, Inc.* | 602 | 16,013 | ||||||
Regal Entertainment Group — Class A | 1,559 | 15,917 | ||||||
Pool Corp. | 885 | 15,903 | ||||||
International Speedway Corp. — Class A | 529 | 15,198 | ||||||
Wyndham Worldwide Corp. | 2,280 | 14,934 | ||||||
Polaris Industries, Inc. | 514 | 14,726 | ||||||
Sonic Corp.* | 1,198 | 14,580 | ||||||
Cheesecake Factory, Inc.* | 1,300 | 13,130 | ||||||
Bob Evans Farms, Inc. | 597 | 12,197 | ||||||
Cinemark Holdings, Inc. | 1,629 | 12,103 | ||||||
Callaway Golf Co. | 1,241 | 11,529 | ||||||
Life Time Fitness, Inc.* | 744 | 9,635 | ||||||
Take-Two Interactive Software, Inc. | 1,267 | 9,578 |
MARKET | ||||||||
SHARES | VALUE | |||||||
CTC Media, Inc.* | 1,920 | $ | 9,216 | |||||
Liberty Media Corp-Capital* | 1,944 | 9,156 | ||||||
Warner Music Group Corp. | 2,849 | 8,604 | ||||||
Gaylord Entertainment Co.* | 740 | 8,022 | ||||||
Live Nation, Inc.* | 1,267 | 7,273 | ||||||
Total Common Stocks | ||||||||
(Cost $1,619,738) | 1,553,428 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.7% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 26,989 | 26,989 | |||||
Total Repurchase Agreement | ||||||||
(Cost $26,989) | 26,989 | |||||||
Total Investments 98.7% | ||||||||
(Cost $1,646,727) | $ | 1,580,417 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 1.3% | $ | 20,996 | ||||||
Net Assets – 100.0% | $ | 1,601,413 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. |
34 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
PRECIOUS METALS FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.0% | ||||||||
Barrick Gold Corp. | 143,647 | $ | 5,281,900 | |||||
Goldcorp, Inc. | 159,058 | 5,015,099 | ||||||
Newmont Mining Corp. | 120,254 | 4,894,338 | ||||||
Agnico-Eagle Mines Ltd. | 77,093 | 3,957,184 | ||||||
Kinross Gold Corp. | 199,126 | 3,667,901 | ||||||
Yamana Gold, Inc. | 369,970 | 2,856,168 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 113,817 | 2,781,687 | ||||||
Gold Fields Ltd. — SP ADR | 279,466 | 2,775,097 | ||||||
AngloGold Ashanti Ltd. — SP ADR | 94,796 | 2,626,797 | ||||||
Eldorado Gold Corp.* | 316,106 | 2,513,043 | ||||||
Randgold Resources | ||||||||
Ltd. — SP ADR | 55,435 | 2,434,705 | ||||||
Silver Wheaton Corp.* | 354,257 | 2,299,128 | ||||||
Pan American Silver Corp.* | 131,879 | 2,251,174 | ||||||
Silver Standard Resources, Inc.* | 137,160 | 2,186,330 | ||||||
Royal Gold, Inc. | 44,174 | 2,173,803 | ||||||
Cia de Minas Buenaventura | ||||||||
SA — SP ADR | 93,899 | 1,870,468 | ||||||
Harmony Gold Mining Co. | ||||||||
Ltd. — SP ADR* | 165,417 | 1,814,624 | ||||||
Iamgold Corp. | 295,697 | 1,806,709 | ||||||
Stillwater Mining Co.* | 346,189 | 1,710,174 | ||||||
Hecla Mining Co.* | 427,724 | 1,197,627 | ||||||
Coeur d’Alene Mines Corp.* | 1,280,798 | 1,127,102 | ||||||
Golden Star Resources Ltd.* | 972,702 | 972,702 | ||||||
Allied Nevada Gold Corp.* | 144,950 | 733,447 | ||||||
Apex Silver Mines Ltd.* | 556,413 | 545,285 | ||||||
Novagold Resources, Inc.* | 245,344 | 365,563 | ||||||
Total Common Stocks | ||||||||
(Cost $38,676,212) | 59,858,055 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 2.2% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 1,312,400 | $ | 1,312,400 | ||||
Total Repurchase Agreement | ||||||||
(Cost $1,312,400) | 1,312,400 | |||||||
Total Investments 100.2% | ||||||||
(Cost $39,988,612) | $ | 61,170,455 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.2)% | $ | (145,179 | ) | |||||
Net Assets – 100.0% | $ | 61,025,276 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 35 |
SCHEDULE OF INVESTMENTS
December 31, 2008
RETAILING FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.9% | ||||||||
Wal-Mart Stores, Inc. | 27,619 | $ | 1,548,321 | |||||
Home Depot, Inc. | 29,166 | 671,401 | ||||||
CVS Caremark Corp. | 22,618 | 650,041 | ||||||
Lowe’s Companies, Inc. | 28,402 | 611,211 | ||||||
Walgreen Co. | 21,190 | 522,757 | ||||||
Target Corp. | 14,154 | 488,738 | ||||||
Costco Wholesale Corp. | 8,859 | 465,098 | ||||||
Amazon.com, Inc.* | 8,973 | 460,136 | ||||||
Staples, Inc. | 20,470 | 366,822 | ||||||
Kohl’s Corp.* | 9,941 | 359,864 | ||||||
Best Buy Company, Inc. | 12,677 | 356,351 | ||||||
AutoZone, Inc.* | 2,405 | 335,425 | ||||||
The Gap, Inc. | 22,845 | 305,895 | ||||||
Sherwin-Williams Co. | 4,836 | 288,951 | ||||||
Genuine Parts Co. | 7,163 | 271,191 | ||||||
TJX Companies, Inc. | 12,780 | 262,885 | ||||||
Bed Bath & Beyond, Inc.* | 10,108 | 256,945 | ||||||
O’Reilly Automotive, Inc.* | 7,818 | 240,325 | ||||||
Dollar Tree, Inc.* | 5,289 | 221,080 | ||||||
Macy’s, Inc. | 20,557 | 212,765 | ||||||
Advance Auto Parts, Inc. | 6,025 | 202,741 | ||||||
Ross Stores, Inc. | 6,812 | 202,521 | ||||||
J.C. Penney Company, Inc. | 10,141 | 199,778 | ||||||
Family Dollar Stores, Inc. | 7,634 | 199,018 | ||||||
priceline.com, Inc.* | 2,494 | 183,683 | ||||||
Sears Holdings Corp.* | 4,589 | 178,374 | ||||||
Limited Brands, Inc. | 16,659 | 167,256 | ||||||
GameStop Corp. — Class A* | 7,546 | 163,446 | ||||||
Tiffany & Co. | 6,712 | 158,605 | ||||||
Netflix, Inc.* | 5,169 | 154,501 | ||||||
AutoNation, Inc.* | 15,590 | 154,029 | ||||||
Petsmart, Inc. | 8,166 | 150,663 | ||||||
Nordstrom, Inc. | 10,973 | 146,051 | ||||||
BJ’s Wholesale Club, Inc.* | 4,242 | 145,331 | ||||||
American Eagle Outfitters, Inc. | 14,309 | 133,932 | ||||||
Abercrombie & Fitch Co. — Class A | 5,681 | 131,061 | ||||||
Urban Outfitters, Inc.* | 8,601 | 128,843 | ||||||
Expedia, Inc.* | 15,387 | 126,789 | ||||||
RadioShack Corp. | 10,043 | 119,913 | ||||||
CarMax, Inc.* | 14,938 | 117,712 | ||||||
Tractor Supply Co.* | 3,190 | 115,287 | ||||||
LKQ Corp.* | 9,857 | 114,933 | ||||||
Rent-A-Center, Inc.* | 6,036 | 106,535 | ||||||
Dick’s Sporting Goods, Inc.* | 7,085 | 99,969 | ||||||
Sally Beauty Holdings, Inc.* | 16,690 | 94,966 | ||||||
Guess?, Inc. | 6,073 | 93,221 | ||||||
Big Lots, Inc.* | 6,122 | 88,708 | ||||||
Liberty Media Corp — Interactive* | 28,220 | 88,046 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Buckle, Inc. | 3,863 | $ | 84,291 | |||||
Aeropostale, Inc.* | 5,223 | 84,090 | ||||||
Foot Locker, Inc. | 10,972 | 80,535 | ||||||
Barnes & Noble, Inc. | 5,055 | 75,825 | ||||||
Williams-Sonoma, Inc. | 9,215 | 72,430 | ||||||
J. Crew Group, Inc.* | 5,619 | 68,552 | ||||||
Total Common Stocks | ||||||||
(Cost $12,395,920) | 13,327,837 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 2.0% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 274,779 | 274,779 | |||||
Total Repurchase Agreement | ||||||||
(Cost $274,779) | 274,779 | |||||||
Total Investments 99.9% | ||||||||
(Cost $12,670,699) | $ | 13,602,616 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.1% | $ | 18,466 | ||||||
Net Assets – 100.0% | $ | 13,621,082 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. |
36 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
TECHNOLOGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.3% | ||||||||
Microsoft Corp. | 13,524 | $ | 262,907 | |||||
International Business Machines Corp. | 2,650 | 223,024 | ||||||
Oracle Corp.* | 11,908 | 211,129 | ||||||
Cisco Systems, Inc.* | 12,427 | 202,560 | ||||||
Hewlett-Packard Co. | 5,426 | 196,909 | ||||||
Intel Corp. | 13,101 | 192,061 | ||||||
Google, Inc. — Class A* | 568 | 174,745 | ||||||
Apple, Inc.* | 2,034 | 173,602 | ||||||
Nokia Oyj — SP ADR | 10,329 | 161,132 | ||||||
Qualcomm, Inc. | 4,449 | 159,408 | ||||||
SAP AG — SP ADR | 3,930 | 142,345 | ||||||
Taiwan Semiconductor Manufacturing Company Ltd. — SP ADR | 17,320 | 136,828 | ||||||
Canon, Inc. — SP ADR | 4,330 | 135,962 | ||||||
Telefonaktiebolaget LM Ericsson — SP ADR | 14,306 | 111,730 | ||||||
Automatic Data Processing, Inc. | 2,646 | 104,094 | ||||||
Visa, Inc. | 1,940 | 101,753 | ||||||
EMC Corp* | 9,697 | 101,528 | ||||||
Accenture Ltd. — Class A | 3,002 | 98,436 | ||||||
Texas Instruments, Inc. | 5,813 | 90,218 | ||||||
Yahoo!, Inc.* | 7,302 | 89,084 | ||||||
Research In Motion Ltd.* | 2,140 | 86,841 | ||||||
Dell, Inc.* | 8,223 | 84,203 | ||||||
eBay, Inc.* | 5,967 | 83,299 | ||||||
Infosys Technologies Ltd. — SP ADR | 3,150 | 77,395 | ||||||
MasterCard, Inc. | 525 | 75,038 | ||||||
Applied Materials, Inc. | 7,155 | 72,480 | ||||||
CA, Inc. | 3,891 | 72,100 | ||||||
Corning, Inc. | 7,548 | 71,932 | ||||||
Symantec Corp.* | 5,253 | 71,021 | ||||||
ASML Holding NV | 3,789 | 68,467 | ||||||
Juniper Networks, Inc.* | 3,851 | 67,431 | ||||||
Paychex, Inc. | 2,472 | 64,964 | ||||||
Broadcom Corp. — Class A* | 3,771 | 63,994 | ||||||
Adobe Systems, Inc.* | 2,976 | 63,359 | ||||||
Motorola, Inc. | 14,171 | 62,777 | ||||||
Activision Blizzard Inc.* | 7,020 | 60,653 | ||||||
Intuit, Inc.* | 2,482 | 59,047 | ||||||
Western Union Co. | 4,090 | 58,651 | ||||||
Xerox Corp. | 7,059 | 56,260 | ||||||
McAfee, Inc.* | 1,547 | 53,480 | ||||||
Computer Sciences Corp.* | 1,485 | 52,183 | ||||||
Tyco Electronics Ltd. | 3,190 | 51,710 | ||||||
BMC Software, Inc.* | 1,876 | 50,483 | ||||||
Fiserv, Inc.* | 1,379 | 50,154 | ||||||
AU Optronics Corp. — SP ADR | 6,504 | 49,951 | ||||||
Harris Corp. | 1,312 | 49,922 | ||||||
Altera Corp. | 2,925 | 48,877 | ||||||
Cognizant Technology Solutions Corp. — Class A* | 2,662 | 48,076 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Analog Devices, Inc. | 2,493 | $ | 47,417 | |||||
Nvidia Corp.* | 5,867 | 47,347 | ||||||
Citrix Systems, Inc.* | 1,992 | 46,951 | ||||||
NetApp, Inc.* | 3,342 | 46,688 | ||||||
STMicroelectronics NV — SP ADR | 6,898 | 45,872 | ||||||
Linear Technology Corp. | 2,057 | 45,501 | ||||||
Affiliated Computer Services, Inc. — Class A* | 987 | 45,353 | ||||||
Xilinx, Inc. | 2,532 | 45,120 | ||||||
Flir Systems, Inc.* | 1,460 | 44,793 | ||||||
SAIC, Inc.* | 2,280 | 44,414 | ||||||
Check Point Software Technologies Ltd.* | 2,327 | 44,190 | ||||||
Alcatel-Lucent* | 20,068 | 43,146 | ||||||
Agilent Technologies, Inc.* | 2,663 | 41,623 | ||||||
Marvell Technology Group Ltd.* | 6,223 | 41,507 | ||||||
Salesforce.com, Inc.* | 1,280 | 40,973 | ||||||
Autodesk, Inc.* | 2,062 | 40,518 | ||||||
KLA-Tencor Corp. | 1,859 | 40,508 | ||||||
Amphenol Corp. | 1,658 | 39,759 | ||||||
Lender Processing Services, Inc. | 1,340 | 39,463 | ||||||
Fidelity National Information Services, Inc. | 2,333 | 37,958 | ||||||
VeriSign, Inc.* | 1,989 | 37,950 | ||||||
Alliance Data Systems Corp.* | 804 | 37,410 | ||||||
Trimble Navigation Ltd.* | 1,710 | 36,953 | ||||||
Electronic Arts, Inc.* | 2,288 | 36,699 | ||||||
Amdocs, Ltd.* | 2,001 | 36,598 | ||||||
Synopsys, Inc.* | 1,956 | 36,225 | ||||||
Microchip Technology, Inc. | 1,848 | 36,091 | ||||||
Total System Services, Inc. | 2,570 | 35,980 | ||||||
Avnet, Inc.* | 1,961 | 35,710 | ||||||
Hewitt Associates, Inc. — Class A* | 1,240 | 35,191 | ||||||
Red Hat, Inc.* | 2,644 | 34,954 | ||||||
Lam Research Corp.* | 1,625 | 34,580 | ||||||
Akamai Technologies, Inc.* | 2,290 | 34,556 | ||||||
Teradata Corp.* | 2,320 | 34,406 | ||||||
ANSYS, Inc.* | 1,193 | 33,273 | ||||||
Nuance Communications, Inc.* | 3,200 | 33,152 | ||||||
Ingram Micro, Inc. — Class A* | 2,433 | 32,578 | ||||||
Lexmark International, Inc.* | 1,206 | 32,441 | ||||||
Arrow Electronics, Inc.* | 1,712 | 32,254 | ||||||
Global Payments, Inc. | 970 | 31,806 | ||||||
IAC/InterActiveCorp* | 2,020 | 31,775 | ||||||
FactSet Research Systems Inc. | 710 | 31,410 | ||||||
Sun Microsystems, Inc.* | 8,060 | 30,789 | ||||||
Metavante Technologies, Inc.* | 1,890 | 30,448 | ||||||
MEMC Electronic Materials, Inc.* | 2,126 | 30,359 | ||||||
Mettler Toledo International, Inc.* | 449 | 30,263 | ||||||
Baidu.com — SP ADR* | 230 | 30,031 | ||||||
Satyam Computer Services Ltd. — SP ADR | 3,320 | 30,013 | ||||||
Sybase, Inc.* | 1,210 | 29,972 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 37 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
TECHNOLOGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Western Digital Corp.* | 2,617 | $ | 29,965 | |||||
Itron, Inc.* | 470 | 29,958 | ||||||
National Instruments Corp. | 1,220 | 29,719 | ||||||
NCR Corp.* | 2,087 | 29,510 | ||||||
Equinix, Inc.* | 550 | 29,254 | ||||||
National Semiconductor Corp. | 2,843 | 28,629 | ||||||
DST Systems, Inc.* | 742 | 28,181 | ||||||
LSI Logic Corp.* | 8,505 | 27,981 | ||||||
Sohu.com, Inc.* | 580 | 27,457 | ||||||
SanDisk Corp.* | 2,546 | 24,442 | ||||||
Micron Technology, Inc.* | 9,058 | 23,913 | ||||||
Flextronics International Ltd.* | 9,103 | 23,304 | ||||||
Seagate Technology | 5,190 | 22,992 | ||||||
Cree, Inc.* | 1,400 | 22,218 | ||||||
ON Semiconductor Corp.* | 6,020 | 20,468 | ||||||
Advanced Micro Devices, Inc.* | 8,320 | 17,971 | ||||||
Infineon Technologies | ||||||||
AG — SP ADR* | 9,980 | 13,972 | ||||||
Total Common Stocks | ||||||||
(Cost $7,279,902) | 7,117,105 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 2.2% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 155,696 | 155,696 | |||||
Total Repurchase Agreement | ||||||||
(Cost $155,696) | 155,696 | |||||||
Total Investments 100.5% | ||||||||
(Cost $7,435,598) | $ | 7,272,801 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.5)% | $ | (34,475 | ) | |||||
Net Assets – 100.0% | $ | 7,238,326 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
38 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
TELECOMMUNICATIONS FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.5% | ||||||||
AT&T, Inc. | 33,939 | $ | 967,262 | |||||
Verizon Communications, Inc. | 22,652 | 767,903 | ||||||
Vodafone Group PLC — SP ADR | 36,296 | 741,890 | ||||||
Cisco Systems, Inc.* | 40,694 | 663,312 | ||||||
Deutsche Telekom AG — SP ADR | 39,999 | 611,985 | ||||||
Qualcomm, Inc. | 10,939 | 391,944 | ||||||
Nokia Oyj — SP ADR | 24,377 | 380,281 | ||||||
America Movil SAB de | ||||||||
CV — SP ADR | 11,857 | 367,448 | ||||||
Telefonaktiebolaget LM | ||||||||
Ericsson — SP ADR | 46,836 | 365,789 | ||||||
Research In Motion Ltd.* | 7,005 | 284,263 | ||||||
Corning, Inc. | 24,705 | 235,439 | ||||||
American Tower Corp. — Class A* | 7,897 | 231,540 | ||||||
Juniper Networks, Inc.* | 12,616 | 220,906 | ||||||
Motorola, Inc. | 46,397 | 205,539 | ||||||
Qwest Communications | ||||||||
International, Inc. | 55,527 | 202,118 | ||||||
MetroPCS Communications, Inc.* | 11,318 | 168,072 | ||||||
Harris Corp. | 4,295 | 163,425 | ||||||
Embarq Corp. | 4,513 | 162,288 | ||||||
Crown Castle International Corp.* | 8,340 | 146,617 | ||||||
Windstream Corp. | 15,565 | 143,198 | ||||||
Alcatel-Lucent* | 65,702 | 141,259 | ||||||
Tele Norte Leste Participacoes | ||||||||
SA — ADR | 10,006 | 139,284 | ||||||
U.S. Cellular Corp.* | 2,798 | 120,986 | ||||||
Frontier Communications Corp. | 13,202 | 115,385 | ||||||
Sprint Nextel Corp.* | 59,906 | 109,628 | ||||||
CenturyTel, Inc. | 3,905 | 106,724 | ||||||
NII Holdings, Inc. — Class B* | 5,828 | 105,953 | ||||||
Leap Wireless International, | ||||||||
Inc. — Class B* | 3,603 | 96,885 | ||||||
SBA Communications Corp.* | 5,507 | 89,874 | ||||||
Polycom, Inc.* | 4,614 | 62,335 | ||||||
CommScope, Inc.* | 3,759 | 58,415 | ||||||
Level 3 Communications, Inc.* | 72,187 | 50,531 | ||||||
Total Common Stocks | ||||||||
(Cost $7,747,926) | 8,618,478 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 1.8% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 161,278 | $ | 161,278 | ||||
Total Repurchase Agreement | ||||||||
(Cost $161,278) | 161,278 | |||||||
Total Investments 100.3% | ||||||||
(Cost $7,909,204) | $ | 8,779,756 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.3)% | $ | (25,664 | ) | |||||
Net Assets – 100.0% | $ | 8,754,092 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 39 |
SCHEDULE OF INVESTMENTS
December 31, 2008
TRANSPORTATION FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.2% | ||||||||
United Parcel Service, | ||||||||
Inc. — Class B | 35,462 | $ | 1,956,084 | |||||
Burlington Northern | ||||||||
Santa Fe Corp. | 20,633 | 1,562,124 | ||||||
Delta Air Lines, Inc.* | 131,891 | 1,511,471 | ||||||
Union Pacific Corp. | 28,608 | 1,367,462 | ||||||
FedEx Corp. | 21,103 | 1,353,757 | ||||||
Canadian National Railway Co. | 33,510 | 1,231,828 | ||||||
Norfolk Southern Corp. | 20,276 | 953,986 | ||||||
CH Robinson Worldwide, Inc. | 17,335 | 953,945 | ||||||
CSX Corp. | 28,556 | 927,213 | ||||||
Expeditors International of | ||||||||
Washington, Inc. | 26,721 | 889,008 | ||||||
Southwest Airlines Co. | 77,652 | 669,360 | ||||||
AMR Corp.* | 53,816 | 574,217 | ||||||
JetBlue Airways Corp.* | 78,815 | 559,587 | ||||||
Continental Airlines, | ||||||||
Inc. — Class B* | 29,309 | 529,321 | ||||||
J.B. Hunt Transport Services, Inc. | 20,085 | 527,633 | ||||||
UAL Corp. | 42,389 | 467,127 | ||||||
Landstar System, Inc. | 11,659 | 448,055 | ||||||
Ryder System, Inc. | 10,797 | 418,708 | ||||||
UTI Worldwide, Inc. | 28,354 | 406,596 | ||||||
Heartland Express, Inc. | 25,342 | 399,390 | ||||||
Hertz Global Holdings, Inc.* | 78,088 | 395,906 | ||||||
Knight Transportation, Inc. | 23,986 | 386,654 | ||||||
Old Dominion Freight Line, Inc.* | 12,122 | 344,992 | ||||||
Werner Enterprises, Inc. | 19,447 | 337,211 | ||||||
Kirby Corp.* | 12,161 | 332,725 | ||||||
Genesee & Wyoming, | ||||||||
Inc. — Class A* | 10,482 | 319,701 | ||||||
Kansas City Southern* | 16,620 | 316,611 | ||||||
Con-way, Inc. | 11,166 | 297,016 | ||||||
HUB Group, Inc. — Class A* | 10,506 | 278,724 | ||||||
Alexander & Baldwin, Inc. | 10,326 | 258,770 | ||||||
DryShips Inc. | 13,484 | 143,739 | ||||||
Total Common Stocks | ||||||||
(Cost $18,819,892) | 21,118,921 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT† 1.9% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 411,625 | $ | 411,625 | ||||
Total Repurchase Agreement | ||||||||
(Cost $411,625) | 411,625 | |||||||
Total Investments 100.1% | ||||||||
(Cost $19,231,517) | $ | 21,530,546 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.1)% | $ | (21,102 | ) | |||||
Net Assets – 100.0% | $ | 21,509,444 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. |
40 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
UTILITIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.1% | ||||||||
Exelon Corp. | 24,774 | $ | 1,377,682 | |||||
Southern Co. | 34,083 | 1,261,071 | ||||||
FPL Group, Inc. | 22,344 | 1,124,574 | ||||||
Dominion Resources, Inc. | 28,487 | 1,020,974 | ||||||
Duke Energy Corp. | 64,646 | 970,337 | ||||||
Entergy Corp. | 11,197 | 930,807 | ||||||
PG&E Corp. | 23,773 | 920,253 | ||||||
Public Service Enterprise Group, Inc. | 30,013 | 875,479 | ||||||
American Electric Power | ||||||||
Company, Inc. | 25,512 | 849,039 | ||||||
FirstEnergy Corp. | 17,178 | 834,507 | ||||||
Sempra Energy | 17,863 | 761,500 | ||||||
Progress Energy, Inc. | 18,755 | 747,387 | ||||||
PPL Corp. | 23,992 | 736,315 | ||||||
Consolidated Edison, Inc. | 18,707 | 728,264 | ||||||
Edison International | 22,404 | 719,617 | ||||||
Xcel Energy, Inc. | 36,188 | 671,287 | ||||||
Ameren Corp. | 18,340 | 609,988 | ||||||
Questar Corp. | 18,464 | 603,588 | ||||||
NRG Energy, Inc.* | 25,040 | 584,183 | ||||||
Allegheny Energy, Inc. | 17,121 | 579,717 | ||||||
DTE Energy Co. | 15,662 | 558,664 | ||||||
Equitable Resources, Inc. | 15,863 | 532,204 | ||||||
Wisconsin Energy Corp. | 12,385 | 519,922 | ||||||
AES Corp.* | 62,547 | 515,387 | ||||||
CenterPoint Energy, Inc. | 40,546 | 511,691 | ||||||
NSTAR | 13,502 | 492,688 | ||||||
SCANA Corp. | 13,742 | 489,215 | ||||||
Constellation Energy Group, Inc. | 19,023 | 477,287 | ||||||
Northeast Utilities | 19,735 | 474,824 | ||||||
MDU Resources Group, Inc. | 21,180 | 457,064 | ||||||
Puget Energy, Inc. | 16,671 | 454,618 | ||||||
Mirant Corp.* | 24,035 | 453,541 | ||||||
American Water Works Company, Inc. | 20,839 | 435,118 | ||||||
Alliant Energy Corp. | 14,338 | 418,383 | ||||||
Pinnacle West Capital Corp. | 12,957 | 416,308 | ||||||
Pepco Holdings, Inc. | 23,405 | 415,673 | ||||||
Aqua America, Inc. | 20,110 | 414,065 | ||||||
Integrys Energy Group, Inc. | 9,356 | 402,121 | ||||||
Oneok, Inc. | 13,566 | 395,042 | ||||||
UGI Corp. | 15,732 | 384,175 | ||||||
NV Energy, Inc. | 38,321 | 378,995 | ||||||
AGL Resources, Inc. | 11,927 | 373,911 | ||||||
DPL, Inc. | 16,024 | 365,988 | ||||||
NiSource, Inc. | 33,189 | 364,083 | ||||||
Piedmont Natural Gas Co. | 11,235 | 355,812 | ||||||
Great Plains Energy, Inc. | 18,122 | 350,298 | ||||||
ITC Holdings Corp. | 8,011 | 349,921 | ||||||
National Fuel Gas Co. | 11,149 | 349,298 |
MARKET | ||||||||
SHARES | VALUE | |||||||
OGE Energy Corp. | 13,526 | $ | 348,700 | |||||
Westar Energy, Inc. | 16,951 | 347,665 | ||||||
CMS Energy Corp. | 34,222 | 345,984 | ||||||
TECO Energy, Inc. | 27,949 | 345,170 | ||||||
Calpine Corp.* | 46,871 | 341,221 | ||||||
Vectren Corp. | 13,360 | 334,134 | ||||||
Atmos Energy Corp. | 13,984 | 331,421 | ||||||
New Jersey Resources Corp. | 8,220 | 323,457 | ||||||
WGL Holdings, Inc. | 9,775 | 319,545 | ||||||
Energen Corp. | 10,873 | 318,905 | ||||||
Reliant Energy, Inc.* | 54,933 | 317,513 | ||||||
Hawaiian Electric Industries, Inc. | 13,333 | 295,193 | ||||||
Ormat Technologies, Inc. | 8,797 | 280,360 | ||||||
Nicor, Inc. | 7,530 | 261,592 | ||||||
Dynegy Inc.* | 89,073 | 178,146 | ||||||
Total Common Stocks | ||||||||
(Cost $30,017,555) | 33,701,871 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.9% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 637,486 | 637,486 | |||||
Total Repurchase Agreement | ||||||||
(Cost $637,486) | 637,486 | |||||||
Total Investments 100.0% | ||||||||
(Cost $30,655,041) | $ | 34,339,357 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.0% | $ | 3,503 | ||||||
Net Assets – 100.0% | $ | 34,342,860 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 4. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 41 |
STATEMENTS OF ASSETS AND LIABILITIES
Basic | Bio- | Consumer | ||||||||||||||
Banking | Materials | technology | Products | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investment Securities | $ | 22,442,039 | $ | 23,340,942 | $ | 34,574,370 | $ | 24,372,874 | ||||||||
Repurchase Agreements | 415,592 | 469,457 | 593,776 | 455,957 | ||||||||||||
Total Investments | 22,857,631 | 23,810,399 | 35,168,146 | 24,828,831 | ||||||||||||
Receivable for Securities Sold | — | — | — | 227,341 | ||||||||||||
Receivable for Fund Shares Sold | 103,091 | 298,853 | 712,910 | 1,455 | ||||||||||||
Investment Income Receivable | 69,669 | 31,594 | — | 90,134 | ||||||||||||
Total Assets | 23,030,391 | 24,140,846 | 35,881,056 | 25,147,761 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for Securities Purchased | — | 164,390 | 517,007 | — | ||||||||||||
Payable for Fund Shares Redeemed | 18,862 | 124,187 | 5,815 | 261,986 | ||||||||||||
Investment Advisory Fees Payable | 15,274 | 14,749 | 21,983 | 16,669 | ||||||||||||
Transfer Agent and Administrative Fees Payable | 4,492 | 4,338 | 6,466 | 4,903 | ||||||||||||
Distribution and Service Fees Payable | 4,492 | 4,338 | 6,466 | 4,903 | ||||||||||||
Portfolio Accounting Fees Payable | 1,797 | 1,735 | 2,586 | 1,961 | ||||||||||||
Custody Fees Payable | 608 | 584 | 1,787 | 635 | ||||||||||||
Other Accrued Fees | 16,640 | 38,124 | 22,803 | 23,996 | ||||||||||||
Total Liabilities | 62,165 | 352,445 | 584,913 | 315,053 | ||||||||||||
NET ASSETS | $ | 22,968,226 | $ | 23,788,401 | $ | 35,296,143 | $ | 24,832,708 | ||||||||
NET ASSETS CONSIST OF | ||||||||||||||||
Paid-In Capital | $ | 34,581,279 | $ | 28,118,202 | $ | 47,128,682 | $ | 29,315,687 | ||||||||
Undistributed Net Investment Income (Loss) | 435,757 | 86,889 | — | 346,841 | ||||||||||||
Accumulated Net Realized Loss on Investments | (12,609,614 | ) | (5,962,687 | ) | (15,641,144 | ) | (7,153,872 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) on Investments | 560,804 | 1,545,997 | 3,808,605 | 2,324,052 | ||||||||||||
NET ASSETS | $ | 22,968,226 | $ | 23,788,401 | $ | 35,296,143 | $ | 24,832,708 | ||||||||
SHARES OUTSTANDING | 1,713,945 | 1,227,276 | 1,854,766 | 902,755 | ||||||||||||
NET ASSET VALUES | $ | 13.40 | $ | 19.38 | $ | 19.03 | $ | 27.51 | ||||||||
Cost of Investments | $ | 22,296,827 | $ | 22,264,402 | $ | 31,359,541 | $ | 22,504,779 |
42 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
December 31, 2008
Energy | Financial | Health | Precious | |||||||||||||||||||||||||||||
Electronics | Energy | Services | Services | Care | Internet | Leisure | Metals | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
$ | 1,824,031 | $ | 30,220,907 | $ | 21,241,372 | $ | 8,142,619 | $ | 35,151,332 | $ | 2,341,260 | $ | 1,553,428 | $ | 59,858,055 | |||||||||||||||||
41,352 | 239,327 | 320,485 | 136,482 | 730,051 | 53,290 | 26,989 | 1,312,400 | |||||||||||||||||||||||||
1,865,383 | 30,460,234 | 21,561,857 | 8,279,101 | 35,881,383 | 2,394,550 | 1,580,417 | 61,170,455 | |||||||||||||||||||||||||
68,134 | 669,264 | — | — | 392,622 | 15,511 | — | — | |||||||||||||||||||||||||
— | 85,934 | 1,675,686 | 696,588 | 64,591 | 4,279 | 427,872 | 1,195,064 | |||||||||||||||||||||||||
369 | 48,154 | 16,423 | 30,646 | 55,222 | 832 | 2,718 | 23,455 | |||||||||||||||||||||||||
1,933,886 | 31,263,586 | 23,253,966 | 9,006,335 | 36,393,818 | 2,415,172 | 2,011,007 | 62,388,974 | |||||||||||||||||||||||||
— | — | 1,583,497 | 667,009 | — | — | 400,002 | 678,275 | |||||||||||||||||||||||||
50,279 | 330,788 | 3,472 | 9,611 | 539,191 | 1,499 | 2,250 | 576,349 | |||||||||||||||||||||||||
1,504 | 22,586 | 13,804 | 5,573 | 24,897 | 1,672 | 795 | 32,638 | |||||||||||||||||||||||||
442 | 6,643 | 4,060 | 1,639 | 7,323 | 492 | 234 | 10,879 | |||||||||||||||||||||||||
442 | 6,643 | 4,060 | 1,639 | 7,323 | 492 | 234 | 10,879 | |||||||||||||||||||||||||
177 | 2,657 | 1,624 | 656 | 2,929 | 197 | 94 | 4,352 | |||||||||||||||||||||||||
57 | 881 | 530 | 217 | 1,158 | 64 | 30 | 1,419 | |||||||||||||||||||||||||
3,839 | 50,315 | 45,394 | 13,093 | 33,405 | 6,045 | 5,955 | 48,907 | |||||||||||||||||||||||||
56,740 | 420,513 | 1,656,441 | 699,437 | 616,226 | 10,461 | 409,594 | 1,363,698 | |||||||||||||||||||||||||
$ | 1,877,146 | $ | 30,843,073 | $ | 21,597,525 | $ | 8,306,898 | $ | 35,777,592 | $ | 2,404,711 | $ | 1,601,413 | $ | 61,025,276 | |||||||||||||||||
$ | 14,483,099 | $ | 30,270,303 | $ | 24,084,485 | $ | 19,924,094 | $ | 46,274,763 | $ | 9,295,441 | $ | 4,719,914 | $ | 69,531,552 | |||||||||||||||||
— | — | — | 264,133 | — | — | — | (96,056 | ) | ||||||||||||||||||||||||
(12,836,511 | ) | (3,289,384 | ) | (2,871,055 | ) | (12,038,555 | ) | (12,411,768 | ) | (7,530,779 | ) | (3,052,191 | ) | (29,592,063 | ) | |||||||||||||||||
230,558 | 3,862,154 | 384,095 | 157,226 | 1,914,597 | 640,049 | (66,310 | ) | 21,181,843 | ||||||||||||||||||||||||
$ | 1,877,146 | $ | 30,843,073 | $ | 21,597,525 | $ | 8,306,898 | $ | 35,777,592 | $ | 2,404,711 | $ | 1,601,413 | $ | 61,025,276 | |||||||||||||||||
275,216 | 1,504,922 | 1,523,400 | 728,140 | 1,685,984 | 244,478 | 52,554 | 6,605,972 | |||||||||||||||||||||||||
$ | 6.82 | $ | 20.49 | $ | 14.18 | $ | 11.41 | $ | 21.22 | $ | 9.84 | $ | 30.47 | $ | 9.24 | |||||||||||||||||
$ | 1,634,825 | $ | 26,598,080 | $ | 21,177,762 | $ | 8,121,875 | $ | 33,966,786 | $ | 1,754,501 | $ | 1,646,727 | $ | 39,988,612 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 43 |
STATEMENTS OF ASSETS AND LIABILITIES (concluded)
Telecom- | Trans- | |||||||||||||||
Retailing | Technology | munications | portation | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investment Securities | $ | 13,327,837 | $ | 7,117,105 | $ | 8,618,478 | $ | 21,118,921 | ||||||||
Repurchase Agreements | 274,779 | 155,696 | 161,278 | 411,625 | ||||||||||||
Total Investments | 13,602,616 | 7,272,801 | 8,779,756 | 21,530,546 | ||||||||||||
Receivable for Securities Sold | — | — | 302,174 | 195,893 | ||||||||||||
Receivable for Fund Shares Sold | 79,211 | 2,683 | — | 981 | ||||||||||||
Investment Income Receivable | 10,949 | 3,576 | 26,540 | 20,879 | ||||||||||||
Total Assets | 13,692,776 | 7,279,060 | 9,108,470 | 21,748,299 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for Fund Shares Redeemed | 49,467 | 19,372 | 330,028 | 197,668 | ||||||||||||
Investment Advisory Fees Payable | 7,950 | 5,267 | 6,663 | 13,634 | ||||||||||||
Transfer Agent and Administrative Fees Payable | 2,338 | 1,549 | 1,960 | 4,010 | ||||||||||||
Distribution and Service Fees Payable | 2,338 | 1,549 | 1,960 | 4,010 | ||||||||||||
Portfolio Accounting Fees Payable | 935 | 620 | 784 | 1,604 | ||||||||||||
Custody Fees Payable | 303 | 200 | 258 | 523 | ||||||||||||
Other Accrued Fees | 8,363 | 12,177 | 12,725 | 17,406 | ||||||||||||
Total Liabilities | 71,694 | 40,734 | 354,378 | 238,855 | ||||||||||||
NET ASSETS | $ | 13,621,082 | $ | 7,238,326 | $ | 8,754,092 | $ | 21,509,444 | ||||||||
NET ASSETS CONSIST OF | ||||||||||||||||
Paid-In Capital | $ | 17,659,639 | $ | 15,931,335 | $ | 13,157,265 | $ | 28,154,907 | ||||||||
Undistributed Net Investment Income | — | — | 180,137 | 41,800 | ||||||||||||
Accumulated Net Realized Loss on Investments | (4,970,474 | ) | (8,530,212 | ) | (5,453,862 | ) | (8,986,292 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) on Investments | 931,917 | (162,797 | ) | 870,552 | 2,299,029 | |||||||||||
NET ASSETS | $ | 13,621,082 | $ | 7,238,326 | $ | 8,754,092 | $ | 21,509,444 | ||||||||
SHARES OUTSTANDING | 1,810,086 | 1,026,710 | 1,102,666 | 1,971,812 | ||||||||||||
NET ASSET VALUES | $ | 7.53 | $ | 7.05 | $ | 7.94 | $ | 10.91 | ||||||||
Cost of Investments | $ | 12,670,699 | $ | 7,435,598 | $ | 7,909,204 | $ | 19,231,517 |
44 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
December 31, 2008
Utilities | |||||
Fund | |||||
$ | 33,701,871 | ||||
637,486 | |||||
34,339,357 | |||||
1,063,702 | |||||
18,567 | |||||
85,702 | |||||
35,507,328 | |||||
1,086,067 | |||||
25,298 | |||||
7,441 | |||||
7,441 | |||||
2,976 | |||||
968 | |||||
34,277 | |||||
1,164,468 | |||||
$ | 34,342,860 | ||||
$ | 36,213,473 | ||||
777,787 | |||||
(6,332,716 | ) | ||||
3,684,316 | |||||
$ | 34,342,860 | ||||
2,229,121 | |||||
$ | 15.41 | ||||
$ | 30,655,041 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 45 |
STATEMENTS OF OPERATIONS
Basic | Bio- | Consumer | ||||||||||||||
Banking | Materials | technology | Products | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Interest | $ | 568 | $ | 5,569 | $ | 1,960 | $ | 2,452 | ||||||||
Income from Securities Lending, net | 25,909 | 60,724 | 36,233 | 13,337 | ||||||||||||
Dividends, Net of Foreign Tax Withheld | 656,838 | 933,145 | 44,117 | 792,154 | ||||||||||||
Total Income | 683,315 | 999,438 | 82,310 | 807,943 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment Advisory Fees | 128,813 | 486,724 | 186,382 | 243,944 | ||||||||||||
Transfer Agent and Administrative Fees | 37,886 | 143,154 | 54,818 | 71,748 | ||||||||||||
Audit and Outside Service Fees | 12,548 | 29,775 | 16,961 | 18,380 | ||||||||||||
Portfolio Accounting Fees | 15,155 | 57,262 | 21,927 | 28,699 | ||||||||||||
Trustees’ Fees* | 1,490 | 7,662 | 1,856 | 3,410 | ||||||||||||
Shareholder Service Fees | 37,886 | 143,154 | 54,818 | 71,748 | ||||||||||||
Custody Fees | 5,369 | 15,593 | 8,201 | 7,926 | ||||||||||||
Miscellaneous | 8,411 | 29,225 | 13,083 | 15,247 | ||||||||||||
Total Expenses | 247,558 | 912,549 | 358,046 | 461,102 | ||||||||||||
Net Investment Income (Loss) | 435,757 | 86,889 | (275,736 | ) | 346,841 | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investment Securities | (10,573,313 | ) | 1,152,831 | (7,929,098 | ) | (5,215,418 | ) | |||||||||
Total Net Realized Gain (Loss) | (10,573,313 | ) | 1,152,831 | (7,929,098 | ) | (5,215,418 | ) | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investment Securities | 447,394 | (23,178,062 | ) | 900,607 | (3,412,150 | ) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 447,394 | (23,178,062 | ) | 900,607 | (3,412,150 | ) | ||||||||||
Net Loss on Investments | (10,125,919 | ) | (22,025,231 | ) | (7,028,491 | ) | (8,627,568 | ) | ||||||||
Net Decrease in Net Assets from Operations | $ | (9,690,162 | ) | $ | (21,938,342 | ) | $ | (7,304,227 | ) | $ | (8,280,727 | ) | ||||
Foreign Tax Withheld | $ | 3,052 | $ | 19,505 | $ | — | $ | 5,542 |
* | Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act. |
46 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Year Ended December 31, 2008
Energy | Financial | Health | Precious | |||||||||||||||||||||||||||||
Electronics | Energy | Services | Services | Care | Internet | Leisure | Metals | |||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||
$ | 832 | $ | 8,631 | $ | 6,947 | $ | 1,252 | $ | 2,356 | $ | 1,267 | $ | 882 | $ | 8,128 | |||||||||||||||||
5,837 | 52,792 | 61,158 | 17,557 | 19,531 | 11,942 | 13,100 | 94,911 | |||||||||||||||||||||||||
48,930 | 1,042,620 | 479,512 | 473,119 | 560,193 | 39,016 | 81,216 | 505,289 | |||||||||||||||||||||||||
55,599 | 1,104,043 | 547,617 | 491,928 | 582,080 | 52,225 | 95,198 | 608,328 | |||||||||||||||||||||||||
32,500 | 619,238 | 570,646 | 120,469 | 308,869 | 82,903 | 60,527 | 544,274 | |||||||||||||||||||||||||
9,559 | 182,129 | 167,837 | 35,432 | 90,844 | 24,383 | 17,802 | 181,425 | |||||||||||||||||||||||||
3,001 | 39,091 | 35,574 | 10,248 | 25,430 | 4,763 | 4,763 | 37,209 | |||||||||||||||||||||||||
3,824 | 72,852 | 67,135 | 14,173 | 36,338 | 9,753 | 7,121 | 72,570 | |||||||||||||||||||||||||
730 | 9,009 | 8,709 | 2,406 | 4,261 | 1,251 | 1,540 | 7,441 | |||||||||||||||||||||||||
9,559 | 182,129 | 167,837 | 35,432 | 90,844 | 24,383 | 17,802 | 181,425 | |||||||||||||||||||||||||
1,118 | 19,501 | 19,071 | 4,109 | 11,237 | 2,623 | 2,576 | 19,737 | |||||||||||||||||||||||||
1,048 | 38,674 | 34,389 | 5,526 | 18,958 | 5,397 | 1,674 | 44,289 | |||||||||||||||||||||||||
61,339 | 1,162,623 | 1,071,198 | 227,795 | 586,781 | 155,456 | 113,805 | 1,088,370 | |||||||||||||||||||||||||
(5,740 | ) | (58,580 | ) | (523,581 | ) | 264,133 | (4,701 | ) | (103,231 | ) | (18,607 | ) | (480,042 | ) | ||||||||||||||||||
(1,803,213 | ) | 1,554,190 | 2,778,008 | (8,632,303 | ) | (8,440,559 | ) | (3,481,970 | ) | (1,616,766 | ) | (16,661,919 | ) | |||||||||||||||||||
(1,803,213 | ) | 1,554,190 | 2,778,008 | (8,632,303 | ) | (8,440,559 | ) | (3,481,970 | ) | (1,616,766 | ) | (16,661,919 | ) | |||||||||||||||||||
(710,290 | ) | (29,169,597 | ) | (32,892,033 | ) | (731,796 | ) | (5,038,254 | ) | (2,316,967 | ) | (3,099,244 | ) | (8,942,337 | ) | |||||||||||||||||
(710,290 | ) | (29,169,597 | ) | (32,892,033 | ) | (731,796 | ) | (5,038,254 | ) | (2,316,967 | ) | (3,099,244 | ) | (8,942,337 | ) | |||||||||||||||||
(2,513,503 | ) | (27,615,407 | ) | (30,114,025 | ) | (9,364,099 | ) | (13,478,813 | ) | (5,798,937 | ) | (4,716,010 | ) | (25,604,256 | ) | |||||||||||||||||
$ | (2,519,243 | ) | $ | (27,673,987 | ) | $ | (30,637,606 | ) | $ | (9,099,966 | ) | $ | (13,483,514 | ) | $ | (5,902,168 | ) | $ | (4,734,617 | ) | $ | (26,084,298 | ) | |||||||||
$ | 3,548 | $ | 25,146 | $ | 393 | $ | 6,871 | $ | 20,418 | $ | — | $ | — | $ | 26,883 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 47 |
STATEMENTS OF OPERATIONS (concluded)
Telecom- | Trans- | |||||||||||||||
Retailing | Technology | munications | portation | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Interest | $ | 534 | $ | 1,745 | $ | 995 | $ | 1,118 | ||||||||
Income from Securities Lending, net | 8,488 | 15,359 | 10,287 | 13,826 | ||||||||||||
Dividends, Net of Foreign Tax Withheld | 79,966 | 137,178 | 385,222 | 275,098 | ||||||||||||
Total Income | 88,988 | 154,282 | 396,504 | 290,042 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment Advisory Fees | 51,902 | 135,774 | 114,786 | 130,092 | ||||||||||||
Transfer Agent and Administrative Fees | 15,265 | 39,933 | 33,760 | 38,262 | ||||||||||||
Audit and Outside Service Fees | 6,330 | 9,493 | 9,848 | 13,129 | ||||||||||||
Portfolio Accounting Fees | 6,106 | 15,973 | 13,504 | 15,305 | ||||||||||||
Trustees’ Fees* | 1,119 | 2,371 | 2,691 | 1,930 | ||||||||||||
Shareholder Service Fees | 15,265 | 39,933 | 33,760 | 38,262 | ||||||||||||
Custody Fees | 1,752 | 4,258 | 4,041 | 4,419 | ||||||||||||
Miscellaneous | 1,746 | 7,470 | 3,977 | 6,843 | ||||||||||||
Total Expenses | 99,485 | 255,205 | 216,367 | 248,242 | ||||||||||||
Net Investment Income (Loss) | (10,497 | ) | (100,923 | ) | 180,137 | 41,800 | ||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investment Securities | (4,010,244 | ) | (4,303,913 | ) | (487,480 | ) | (7,373,133 | ) | ||||||||
Total Net Realized Loss | (4,010,244 | ) | (4,303,913 | ) | (487,480 | ) | (7,373,133 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investment Securities | (496,209 | ) | (5,449,695 | ) | (7,308,560 | ) | 321,511 | |||||||||
Net Change in Unrealized Appreciation (Depreciation) | (496,209 | ) | (5,449,695 | ) | (7,308,560 | ) | 321,511 | |||||||||
Net Loss on Investments | (4,506,453 | ) | (9,753,608 | ) | (7,796,040 | ) | (7,051,622 | ) | ||||||||
Net Decrease in Net Assets from Operations | $ | (4,516,950 | ) | $ | (9,854,531 | ) | $ | (7,615,903 | ) | $ | (7,009,822 | ) | ||||
Foreign Tax Withheld | $ | — | $ | 8,565 | $ | 19,750 | $ | 2,615 |
* | Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act. |
48 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Year Ended December 31, 2008
Utilities | |||||
Fund | |||||
$ | 3,287 | ||||
23,727 | |||||
1,408,512 | |||||
1,435,526 | |||||
348,349 | |||||
102,456 | |||||
26,128 | |||||
40,982 | |||||
5,305 | |||||
102,456 | |||||
11,422 | |||||
20,642 | |||||
657,740 | |||||
777,786 | |||||
(4,412,357 | ) | ||||
(4,412,357 | ) | ||||
(8,435,432 | ) | ||||
(8,435,432 | ) | ||||
(12,847,789 | ) | ||||
$ | (12,070,003 | ) | |||
$ | — |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 49 |
STATEMENTS OF CHANGES IN NET ASSETS
Banking Fund | Basic Materials Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
FROM OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | 435,757 | $ | 231,442 | $ | 86,889 | $ | 227,377 | ||||||||
Net Realized Gain (Loss) on Investments | (10,573,313 | ) | (236,806 | ) | 1,152,831 | 4,888,395 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 447,394 | (2,663,252 | ) | (23,178,062 | ) | 13,276,324 | ||||||||||
Net Increase (Decrease) in Net Assets from Operations | (9,690,162 | ) | (2,668,616 | ) | (21,938,342 | ) | 18,392,096 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Net Investment Income | (31,117 | ) | (264,031 | ) | (210,622 | ) | (115,536 | ) | ||||||||
Realized Gain on Investments | — | — | (2,124,893 | ) | (6,304,782 | ) | ||||||||||
Total Distributions to Shareholders | (31,117 | ) | (264,031 | ) | (2,335,515 | ) | (6,420,318 | ) | ||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Purchased | 131,840,581 | 53,295,310 | 122,781,379 | 207,462,598 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 31,117 | 264,031 | 2,335,515 | 6,420,318 | ||||||||||||
Cost of Shares Redeemed | (108,368,480 | ) | (65,788,808 | ) | (172,645,480 | ) | (188,885,815 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | 23,503,218 | (12,229,467 | ) | (47,528,586 | ) | 24,997,101 | ||||||||||
Net Increase (Decrease) in Net Assets | 13,781,939 | (15,162,114 | ) | (71,802,443 | ) | 36,968,879 | ||||||||||
NET ASSETS—BEGINNING OF PERIOD | 9,186,287 | 24,348,401 | 95,590,844 | 58,621,965 | ||||||||||||
NET ASSETS—END OF PERIOD | $ | 22,968,226 | $ | 9,186,287 | $ | 23,788,401 | $ | 95,590,844 | ||||||||
UNDISTRIBUTED NET INVESTMENT INCOME—END OF PERIOD | $ | 435,757 | $ | 31,117 | $ | 86,889 | $ | 210,622 | ||||||||
50 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Biotechnology Fund | Consumer Products Fund | Electronics Fund | Energy Fund | |||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
$ | (275,736 | ) | $ | (141,129 | ) | $ | 346,841 | $ | 359,385 | $ | (5,740 | ) | $ | (62,342 | ) | $ | (58,580 | ) | $ | (211,655 | ) | |||||||||||
(7,929,098 | ) | 469,104 | (5,215,418 | ) | 3,935,767 | (1,803,213 | ) | (51,554 | ) | 1,554,190 | 9,147,271 | |||||||||||||||||||||
900,607 | (231,721 | ) | (3,412,150 | ) | (1,236,597 | ) | (710,290 | ) | (389,276 | ) | (29,169,597 | ) | 9,036,708 | |||||||||||||||||||
(7,304,227 | ) | 96,254 | (8,280,727 | ) | 3,058,555 | (2,519,243 | ) | (503,172 | ) | (27,673,987 | ) | 17,972,324 | ||||||||||||||||||||
— | — | (52,693 | ) | (619,303 | ) | — | — | — | — | |||||||||||||||||||||||
— | — | (723,429 | ) | (2,667,488 | ) | — | — | (1,382,160 | ) | (9,416,467 | ) | |||||||||||||||||||||
— | — | (776,122 | ) | (3,286,791 | ) | — | — | (1,382,160 | ) | (9,416,467 | ) | |||||||||||||||||||||
113,407,091 | 86,196,308 | 93,052,835 | 88,745,950 | 36,140,507 | 96,620,046 | 135,629,947 | 215,732,736 | |||||||||||||||||||||||||
— | — | 776,122 | 3,286,791 | — | — | 1,382,160 | 9,416,467 | |||||||||||||||||||||||||
(84,733,296 | ) | (83,120,184 | ) | (100,786,369 | ) | (93,964,574 | ) | (34,687,381 | ) | (97,029,201 | ) | (178,570,587 | ) | (202,437,037 | ) | |||||||||||||||||
28,673,795 | 3,076,124 | (6,957,412 | ) | (1,931,833 | ) | 1,453,126 | (409,155 | ) | (41,558,480 | ) | 22,712,166 | |||||||||||||||||||||
21,369,568 | 3,172,378 | (16,014,261 | ) | (2,160,069 | ) | (1,066,117 | ) | (912,327 | ) | (70,614,627 | ) | 31,268,023 | ||||||||||||||||||||
13,926,575 | 10,754,197 | 40,846,969 | 43,007,038 | 2,943,263 | 3,855,590 | 101,457,700 | 70,189,677 | |||||||||||||||||||||||||
$ | 35,296,143 | $ | 13,926,575 | $ | 24,832,708 | $ | 40,846,969 | $ | 1,877,146 | $ | 2,943,263 | $ | 30,843,073 | $ | 101,457,700 | |||||||||||||||||
$ | — | $ | — | $ | 346,841 | $ | 52,693 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 51 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Energy Services Fund | Financial Services Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
FROM OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | (523,581 | ) | $ | (724,648 | ) | $ | 264,133 | $ | 301,738 | ||||||
Net Realized Gain (Loss) on Investments | 2,778,008 | 5,318,870 | (8,632,303 | ) | (2,475,909 | ) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (32,892,033 | ) | 15,361,157 | (731,796 | ) | (3,591,390 | ) | |||||||||
Net Increase (Decrease) in Net Assets from Operations | (30,637,606 | ) | 19,955,379 | (9,099,966 | ) | (5,765,561 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Net Investment Income | — | — | — | (356,724 | ) | |||||||||||
Realized Gain on Investments | (2,824,110 | ) | (4,988,289 | ) | — | (1,965,631 | ) | |||||||||
Total Distributions to Shareholders | (2,824,110 | ) | (4,988,289 | ) | — | (2,322,355 | ) | |||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Purchased | 99,290,499 | 208,159,435 | 68,548,696 | 79,190,928 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 2,824,110 | 4,988,289 | — | 2,322,355 | ||||||||||||
Cost of Shares Redeemed | (142,972,195 | ) | (176,108,208 | ) | (68,649,518 | ) | (106,107,981 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | (40,857,586 | ) | 37,039,516 | (100,822 | ) | (24,594,698 | ) | |||||||||
Net Increase (Decrease) in Net Assets | (74,319,302 | ) | 52,006,606 | (9,200,788 | ) | (32,682,614 | ) | |||||||||
NET ASSETS—BEGINNING OF PERIOD | 95,916,827 | 43,910,221 | 17,507,686 | 50,190,300 | ||||||||||||
NET ASSETS—END OF PERIOD | $ | 21,597,525 | $ | 95,916,827 | $ | 8,306,898 | $ | 17,507,686 | ||||||||
UNDISTRIBUTED NET INVESTMENT INCOME—END OF PERIOD | $ | — | $ | — | $ | 264,133 | $ | — | ||||||||
52 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Health Care Fund | Internet Fund | Leisure Fund | Precious Metals Fund | ||||||||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | Year | ||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||||||||
$ | (4,701 | ) | $ | (10,979 | ) | $ | (103,231 | ) | $ | (42,463 | ) | $ | (18,607 | ) | $ | (35,731 | ) | $ | (480,042 | ) | $ | (451,283 | ) | ||||||||||||||
(8,440,559 | ) | 1,289,369 | (3,481,970 | ) | (2,185,780 | ) | (1,616,766 | ) | 3,885,473 | (16,661,919 | ) | 2,831,069 | |||||||||||||||||||||||||
(5,038,254 | ) | 668,394 | (2,316,967 | ) | 637,407 | (3,099,244 | ) | (3,807,495 | ) | (8,942,337 | ) | 5,749,066 | |||||||||||||||||||||||||
(13,483,514 | ) | 1,946,784 | (5,902,168 | ) | (1,590,836 | ) | (4,734,617 | ) | 42,247 | (26,084,298 | ) | 8,128,852 | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
(1,811,041 | ) | (704,340 | ) | — | — | (897,056 | ) | (2,699,704 | ) | — | — | ||||||||||||||||||||||||||
(1,811,041 | ) | (704,340 | ) | — | — | (897,056 | ) | (2,699,704 | ) | — | — | ||||||||||||||||||||||||||
120,262,804 | 92,827,139 | 34,864,746 | 88,043,421 | 18,425,199 | 44,910,850 | 219,496,964 | 241,306,780 | ||||||||||||||||||||||||||||||
1,811,041 | 704,340 | — | — | 897,056 | 2,699,704 | — | — | ||||||||||||||||||||||||||||||
(108,522,893 | ) | (98,077,985 | ) | (51,495,124 | ) | (70,895,883 | ) | (27,400,224 | ) | (67,341,016 | ) | (223,999,955 | ) | (220,733,106 | ) | ||||||||||||||||||||||
13,550,952 | (4,546,506 | ) | (16,630,378 | ) | 17,147,538 | (8,077,969 | ) | (19,730,462 | ) | (4,502,991 | ) | 20,573,674 | |||||||||||||||||||||||||
(1,743,603 | ) | (3,304,062 | ) | (22,532,546 | ) | 15,556,702 | (13,709,642 | ) | (22,387,919 | ) | (30,587,289 | ) | 28,702,526 | ||||||||||||||||||||||||
37,521,195 | 40,825,257 | 24,937,257 | 9,380,555 | 15,311,055 | 37,698,974 | 91,612,565 | 62,910,039 | ||||||||||||||||||||||||||||||
$ | 35,777,592 | $ | 37,521,195 | $ | 2,404,711 | $ | 24,937,257 | $ | 1,601,413 | $ | 15,311,055 | $ | 61,025,276 | $ | 91,612,565 | ||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (96,056 | ) | $ | — | |||||||||||||||||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 53 |
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
Retailing Fund | Technology Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income (Loss) | $ | (10,497 | ) | $ | (142,319 | ) | $ | (100,923 | ) | $ | (310,013 | ) | ||||
Net Realized Gain (Loss) on Investments | (4,010,244 | ) | 4,054,955 | (4,303,913 | ) | (97,899 | ) | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (496,209 | ) | (4,163,479 | ) | (5,449,695 | ) | 2,356,246 | |||||||||
Net Increase (Decrease) in Net Assets from Operations | (4,516,950 | ) | (250,843 | ) | (9,854,531 | ) | 1,948,334 | |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net Investment Income | — | — | — | — | ||||||||||||
Realized Gain on Investments | (43,364 | ) | (2,790,535 | ) | (1,738,171 | ) | — | |||||||||
Total Distributions to Shareholders | (43,364 | ) | (2,790,535 | ) | (1,738,171 | ) | — | |||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 43,988,119 | 32,143,772 | 51,312,291 | 107,559,082 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 43,364 | 2,790,535 | 1,738,171 | — | ||||||||||||
Cost of Shares Redeemed | (30,501,348 | ) | (55,548,038 | ) | (67,342,145 | ) | (99,599,978 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | 13,530,135 | (20,613,731 | ) | (14,291,683 | ) | 7,959,104 | ||||||||||
Net Increase (Decrease) in Net Assets | 8,969,821 | (23,655,109 | ) | (25,884,385 | ) | 9,907,438 | ||||||||||
Net Assets—Beginning of Period | 4,651,261 | 28,306,370 | 33,122,711 | 23,215,273 | ||||||||||||
Net Assets—End of Period | $ | 13,621,082 | $ | 4,651,261 | $ | 7,238,326 | $ | 33,122,711 | ||||||||
Undistributed Net Investment Income—End of Period | $ | — | $ | — | $ | — | $ | — | ||||||||
54 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Telecommunications Fund | Transportation Fund | Utilities Fund | |||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | ||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||
$ | 180,137 | $ | 89,337 | $ | 41,800 | $ | (28,394 | ) | $ | 777,786 | $ | 903,330 | |||||||||||||
(487,480 | ) | 829,644 | (7,373,133 | ) | 6,322,992 | (4,412,357 | ) | 6,950,046 | |||||||||||||||||
(7,308,560 | ) | 1,033,472 | 321,511 | (6,232,420 | ) | (8,435,432 | ) | (471,010 | ) | ||||||||||||||||
(7,615,903 | ) | 1,952,453 | (7,009,822 | ) | 62,178 | (12,070,003 | ) | 7,382,366 | |||||||||||||||||
(27,542 | ) | (61,795 | ) | — | — | (168,847 | ) | (965,717 | ) | ||||||||||||||||
(2,568,098 | ) | — | (426,402 | ) | (4,179,577 | ) | (446,727 | ) | (6,515,265 | ) | |||||||||||||||
(2,595,640 | ) | (61,795 | ) | (426,402 | ) | (4,179,577 | ) | (615,574 | ) | (7,480,982 | ) | ||||||||||||||
51,078,163 | 127,767,300 | 108,853,564 | 67,872,597 | 151,253,931 | 183,701,392 | ||||||||||||||||||||
2,595,640 | 61,795 | 426,402 | 4,179,577 | 615,574 | 7,480,982 | ||||||||||||||||||||
(66,488,967 | ) | (131,276,188 | ) | (88,847,430 | ) | (88,970,860 | ) | (170,372,614 | ) | (197,270,858 | ) | ||||||||||||||
(12,815,164 | ) | (3,447,093 | ) | 20,432,536 | (16,918,686 | ) | (18,503,109 | ) | (6,088,484 | ) | |||||||||||||||
(23,026,707 | ) | (1,556,435 | ) | 12,996,312 | (21,036,085 | ) | (31,188,686 | ) | (6,187,100 | ) | |||||||||||||||
31,780,799 | 33,337,234 | 8,513,132 | 29,549,217 | 65,531,546 | 71,718,646 | ||||||||||||||||||||
$ | 8,754,092 | $ | 31,780,799 | $ | 21,509,444 | $ | 8,513,132 | $ | 34,342,860 | $ | 65,531,546 | ||||||||||||||
$ | 180,137 | $ | 27,542 | $ | 41,800 | $ | — | $ | 777,787 | $ | 168,848 | ||||||||||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 55 |
FINANCIAL HIGHLIGHTS
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.
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 | Income | Turnover | Period (000’s | |||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Distributions | Value | PERIOD | Return†† | Expenses | (Loss) | Rate | omitted) | ||||||||||||||||||||||||||||||||||||||||||
Banking Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 22.80 | $ | .48 | $ (9.86 | ) | $ (9.38 | ) | $ (.02 | ) | $ | — | $ (.02 | ) | $ (9.40 | ) | $ | 13.40 | (41.16) | % | 1.63 | % | 2.87 | % | 521 | % | $ | 22,968 | ||||||||||||||||||||||||||||
December 31, 2007 | 32.44 | .56 | (9.32 | ) | (8.76 | ) | (.88 | ) | — | (.88 | ) | (9.64 | ) | 22.80 | (27.08) | % | 1.59 | % | 1.85 | % | 405 | % | 9,186 | |||||||||||||||||||||||||||||||||
December 31, 2006 | 29.69 | .44 | 2.89 | 3.33 | (.58 | ) | — | (.58 | ) | 2.75 | 32.44 | 11.25 | % | 1.59 | % | 1.42 | % | 259 | % | 24,348 | ||||||||||||||||||||||||||||||||||||
December 31, 2005 | 36.29 | .44 | (1.52 | ) | (1.08 | ) | (.49 | ) | (5.03 | ) | (5.52 | ) | (6.60 | ) | 29.69 | (2.77) | % | 1.58 | % | 1.34 | % | 532 | % | 14,580 | ||||||||||||||||||||||||||||||||
December 31, 2004 | 32.50 | .35 | 4.38 | 4.73 | (.11 | ) | (.83 | ) | (.94 | ) | 3.79 | 36.29 | 14.74 | % | 1.59 | % | 1.02 | % | 884 | % | 21,920 | |||||||||||||||||||||||||||||||||||
Basic Materials Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 41.66 | .06 | (19.38 | ) | (19.32 | ) | (.27 | ) | (2.69 | ) | (2.96 | ) | (22.28 | ) | 19.38 | (45.40) | % | 1.60 | % | 0.15 | % | 191 | % | 23,788 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 33.33 | .11 | 11.21 | 11.32 | (.05 | ) | (2.94 | ) | (2.99 | ) | 8.33 | 41.66 | 33.97 | % | 1.58 | % | 0.28 | % | 244 | % | 95,591 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 27.87 | .32 | 5.90 | 6.22 | (.31 | ) | (.45 | ) | (.76 | ) | 5.46 | 33.33 | 22.29 | % | 1.60 | % | 1.02 | % | 225 | % | 58,622 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 32.66 | .12 | .80 | .92 | (.13 | ) | (5.58 | ) | (5.71 | ) | (4.79 | ) | 27.87 | 4.04 | % | 1.57 | % | 0.41 | % | 364 | % | 28,317 | ||||||||||||||||||||||||||||||||||
December 31, 2004 | 27.69 | .09 | 5.58 | 5.67 | (.01 | ) | (.69 | ) | (.70 | ) | 4.97 | 32.66 | 20.83 | % | 1.59 | % | 0.30 | % | 725 | % | 46,162 | |||||||||||||||||||||||||||||||||||
Biotechnology Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 21.57 | (.26 | ) | (2.28 | ) | (2.54 | ) | — | — | — | (2.54 | ) | 19.03 | (11.78) | % | 1.63 | % | (1.25) | % | 351 | % | 35,296 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 20.66 | (.26 | ) | 1.17 | .91 | — | — | — | .91 | 21.57 | 4.40 | % | 1.59 | % | (1.20) | % | 660 | % | 13,927 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 21.37 | (.32 | ) | (.39 | ) | (.71 | ) | — | — | — | (.71 | ) | 20.66 | (3.32) | % | 1.59 | % | (1.48) | % | 379 | % | 10,754 | ||||||||||||||||||||||||||||||||||
December 31, 2005 | 19.31 | (.31 | ) | 2.37 | 2.06 | — | — | — | 2.06 | 21.37 | 10.67 | % | 1.66 | % | (1.59) | % | 652 | % | 36,086 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 19.10 | (.29 | ) | .50 | .21 | — | — | — | .21 | 19.31 | 1.10 | % | 1.59 | % | (1.51) | % | 1,169 | % | 6,588 | |||||||||||||||||||||||||||||||||||||
Consumer Products Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 37.02 | .40 | (9.09 | ) | (8.69 | ) | (.06 | ) | (.76 | ) | (.82 | ) | (9.51 | ) | 27.51 | (23.39) | % | 1.61 | % | 1.21 | % | 297 | % | 24,833 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 36.55 | .42 | 3.69 | 4.11 | (.69 | ) | (2.95 | ) | (3.64 | ) | .47 | 37.02 | 11.08 | % | 1.59 | % | 1.10 | % | 260 | % | 40,847 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 31.63 | .48 | 5.03 | 5.51 | (.27 | ) | (.32 | ) | (.59 | ) | 4.92 | 36.55 | 17.42 | % | 1.59 | % | 1.41 | % | 219 | % | 43,007 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 32.95 | .14 | (.26 | ) | (.12 | ) | (.17 | ) | (1.03 | ) | (1.20 | ) | (1.32 | ) | 31.63 | (0.40) | % | 1.58 | % | 0.42 | % | 357 | % | 22,177 | ||||||||||||||||||||||||||||||||
December 31, 2004 | 29.39 | .11 | 3.78 | 3.89 | (.01 | ) | (.32 | ) | (.33 | ) | 3.56 | 32.95 | 13.30 | % | 1.59 | % | 0.36 | % | 730 | % | 24,433 | |||||||||||||||||||||||||||||||||||
Electronics Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 13.67 | (.02 | ) | (6.83 | ) | (6.85 | ) | — | — | — | (6.85 | ) | 6.82 | (50.11) | % | 1.61 | % | (0.15) | % | 940 | % | 1,877 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 14.02 | (.11 | ) | (.24 | ) | (.35 | ) | — | — | — | (.35 | ) | 13.67 | (2.50) | % | 1.59 | % | (0.73) | % | 1,009 | % | 2,943 | ||||||||||||||||||||||||||||||||||
December 31, 2006 | 13.68 | (.15 | ) | .49 | .34 | — | — | — | .34 | 14.02 | 2.49 | % | 1.59 | % | (1.02) | % | 477 | % | 3,856 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 13.17 | (.16 | ) | .67 | .51 | — | — | — | .51 | 13.68 | 3.87 | % | 1.62 | % | (1.24) | % | 1,136 | % | 8,306 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 16.88 | (.20 | ) | (3.51 | ) | (3.71 | ) | — | — | — | (3.71 | ) | 13.17 | (21.98) | % | 1.59 | % | (1.34) | % | 1,325 | % | 12,289 | ||||||||||||||||||||||||||||||||||
Energy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 39.83 | (.03 | ) | (18.29 | ) | (18.32 | ) | — | (1.02 | ) | (1.02 | ) | (19.34 | ) | 20.49 | (46.03) | % | 1.60 | % | (0.08) | % | 154 | % | 30,843 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 33.14 | (.11 | ) | 11.01 | 10.90 | — | (4.21 | ) | (4.21 | ) | 6.69 | 39.83 | 33.22 | % | 1.58 | % | (0.27) | % | 217 | % | 101,458 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 39.20 | (.13 | ) | 5.28 | 5.15 | — | (11.21 | ) | (11.21 | ) | (6.06 | ) | 33.14 | 11.93 | % | 1.59 | % | (0.31) | % | 146 | % | 70,190 | ||||||||||||||||||||||||||||||||||
December 31, 2005 | 29.68 | —§ | 11.44 | 11.44 | (.01 | ) | (1.91 | ) | (1.92 | ) | 9.52 | 39.20 | 38.54 | % | 1.59 | % | (0.01) | % | 351 | % | 83,437 | |||||||||||||||||||||||||||||||||||
December 31, 2004 | 22.45 | .01 | 7.23 | 7.24 | (— | )§ | (.01 | ) | (.01 | ) | 7.23 | 29.68 | 32.27 | % | 1.58 | % | 0.04 | % | 542 | % | 60,501 | |||||||||||||||||||||||||||||||||||
Energy Services Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 38.67 | (.28 | ) | (21.79 | ) | (22.07 | ) | — | (2.42 | ) | (2.42 | ) | (24.49 | ) | 14.18 | (57.60) | % | 1.60 | % | (0.78) | % | 122 | % | 21,598 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 29.79 | (.34 | ) | 11.37 | 11.03 | — | (2.15 | ) | (2.15 | ) | 8.88 | 38.67 | 37.10 | % | 1.58 | % | (0.91) | % | 193 | % | 95,917 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 30.92 | (.37 | ) | 4.01 | 3.64 | — | (4.77 | ) | (4.77 | ) | (1.13 | ) | 29.79 | 10.98 | % | 1.59 | % | (1.08) | % | 184 | % | 43,910 | ||||||||||||||||||||||||||||||||||
December 31, 2005 | 20.85 | (.30 | ) | 10.37 | 10.07 | — | — | — | 10.07 | 30.92 | 48.30 | % | 1.61 | % | (1.17) | % | 317 | % | 79,722 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 15.59 | (.22 | ) | 5.48 | 5.26 | — | — | — | 5.26 | 20.85 | 33.74 | % | 1.58 | % | (1.19) | % | 808 | % | 29,316 |
56 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued)
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.
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 | Income | Turnover | Period (000’s | |||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Distributions | Value | PERIOD | Return†† | �� | Expenses | (Loss) | Rate | omitted) | |||||||||||||||||||||||||||||||||||||||||
Financial Services Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ 21.96 | $ .32 | $ (10.87 | ) | $ (10.55 | ) | $ — | $ — | $ — | $ (10.55 | ) | $11.41 | (48.04) | % | 1.61 | % | 1.87 | % | 422 | % | $ 8,307 | |||||||||||||||||||||||||||||||||||
December 31, 2007 | 32.18 | .28 | (6.23 | ) | (5.95 | ) | (.66 | ) | (3.61 | ) | (4.27 | ) | (10.22 | ) | 21.96 | (18.80) | % | 1.59 | % | 0.90 | % | 525 | % | 17,508 | ||||||||||||||||||||||||||||||||
December 31, 2006 | 29.10 | .26 | 4.59 | 4.85 | (.39 | ) | (1.38 | ) | (1.77 | ) | 3.08 | 32.18 | 16.73 | % | 1.59 | % | 0.83 | % | 330 | % | 50,190 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 30.38 | .28 | .67 | .95 | (.25 | ) | (1.98 | ) | (2.23 | ) | (1.28 | ) | 29.10 | 3.38 | % | 1.59 | % | 0.94 | % | 549 | % | 36,839 | ||||||||||||||||||||||||||||||||||
December 31, 2004 | 26.00 | .23 | 4.21 | 4.44 | (.06 | ) | — | (.06 | ) | 4.38 | 30.38 | 17.12 | % | 1.59 | % | 0.84 | % | 762 | % | 45,180 | ||||||||||||||||||||||||||||||||||||
Health Care Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 29.61 | (--)§ | (7.40 | ) | (7.40 | ) | — | (.99 | ) | (.99 | ) | (8.39 | ) | 21.22 | (24.86) | % | 1.62 | % | (0.01) | % | 266 | % | 35,778 | |||||||||||||||||||||||||||||||||
December 31, 2007 | 28.41 | (.01 | ) | 1.73 | 1.72 | — | (.52 | ) | (.52 | ) | 1.20 | 29.61 | 6.02 | % | 1.59 | % | (0.02) | % | 424 | % | 37,521 | |||||||||||||||||||||||||||||||||||
December 31, 2006 | 28.17 | (.15 | ) | 1.59 | 1.44 | — | (1.20 | ) | (1.20 | ) | .24 | 28.41 | 5.11 | % | 1.59 | % | (0.52) | % | 251 | % | 40,825 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 25.46 | (.16 | ) | 2.87 | 2.71 | — | — | — | 2.71 | 28.17 | 10.64 | % | 1.60 | % | (0.62) | % | 330 | % | 51,692 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 24.28 | (.16 | ) | 1.65 | 1.49 | — | (.31 | ) | (.31 | ) | 1.18 | 25.46 | 6.22 | % | 1.59 | % | (0.67) | % | 629 | % | 30,435 | |||||||||||||||||||||||||||||||||||
Internet Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 17.85 | (.16 | ) | (7.85 | ) | (8.01 | ) | — | — | — | (8.01 | ) | 9.84 | (44.87) | % | 1.60 | % | (1.07) | % | 341 | % | 2,405 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 16.17 | (.05 | ) | 1.73 | 1.68 | — | — | — | 1.68 | 17.85 | 10.39 | % | 1.54 | % | (0.29) | % | 432 | % | 24,937 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 14.74 | (.21 | ) | 1.64 | 1.43 | — | — | — | 1.43 | 16.17 | 9.70 | % | 1.58 | % | (1.33) | % | 420 | % | 9,381 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 17.01 | (.21 | ) | (.13 | ) | (.34 | ) | — | (1.93 | ) | (1.93 | ) | (2.27 | ) | 14.74 | (1.38) | % | 1.61 | % | (1.36) | % | 676 | % | 20,959 | ||||||||||||||||||||||||||||||||
December 31, 2004 | 14.68 | (.23 | ) | 2.56 | 2.33 | — | — | — | 2.33 | 17.01 | 15.87 | % | 1.58 | % | (1.49) | % | 693 | % | 36,922 | |||||||||||||||||||||||||||||||||||||
Leisure Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008††† | 636.60 | (1.07 | ) | (347.66 | ) | (348.73 | ) | — | (257.40 | ) | (257.40 | ) | (606.13 | ) | 30.47 | (49.09) | % | 1.61 | % | (0.26) | % | 255 | % | 1,601 | ||||||||||||||||||||||||||||||||
December 31, 2007††† | 785.70 | (1.20 | ) | (15.30 | ) | (16.50 | ) | — | (132.60 | ) | (132.60 | ) | 149.10 | 636.60 | (2.54) | % | 1.59 | % | (0.14) | % | 171 | % | 15,311 | |||||||||||||||||||||||||||||||||
December 31, 2006††† | 658.80 | (.60 | ) | 155.10 | 154.50 | — | (27.60 | ) | (27.60 | ) | 126.90 | 785.70 | 23.47 | % | 1.60 | % | (0.07) | % | 221 | % | 37,699 | |||||||||||||||||||||||||||||||||||
December 31, 2005††† | 761.70 | (5.70 | ) | (30.90 | ) | (36.60 | ) | — | (66.30 | ) | (66.30 | ) | (102.90 | ) | 658.80 | (4.87) | % | 1.56 | % | (0.79) | % | 369 | % | 13,961 | ||||||||||||||||||||||||||||||||
December 31, 2004††† | 624.00 | (5.10 | ) | 152.10 | 147.00 | — | (9.30 | ) | (9.30 | ) | 137.70 | 761.70 | 23.86 | % | 1.58 | % | (0.74) | % | 663 | % | 51,755 | |||||||||||||||||||||||||||||||||||
Precious Metals Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 15.04 | (.09 | ) | (5.71 | ) | (5.80 | ) | — | — | — | (5.80 | ) | 9.24 | (38.56) | % | 1.50 | % | (0.66) | % | 228 | % | 61,025 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 12.58 | (.10 | ) | 2.56 | 2.46 | — | — | — | 2.46 | 15.04 | 19.55 | % | 1.45 | % | (0.71) | % | 268 | % | 91,613 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 10.36 | (.03 | ) | 2.25 | 2.22 | — | — | — | 2.22 | 12.58 | 21.43 | % | 1.49 | % | (0.26) | % | 228 | % | 62,910 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 8.57 | (.02 | ) | 1.81 | 1.79 | — | — | — | 1.79 | 10.36 | 20.89 | % | 1.57 | % | (0.24) | % | 308 | % | 68,241 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 9.99 | (.05 | ) | (1.37 | ) | (1.42 | ) | — | — | — | (1.42 | ) | 8.57 | (14.21) | % | 1.46 | % | (0.54) | % | 519 | % | 35,043 | ||||||||||||||||||||||||||||||||||
Retailing Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 11.27 | (.02 | ) | (3.70 | ) | (3.72 | ) | — | (.02 | ) | (.02 | ) | (3.74 | ) | 7.53 | (32.95) | % | 1.62 | % | (0.17) | % | 460 | % | 13,621 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 29.78 | (.24 | ) | (2.95 | ) | (3.19 | ) | — | (15.32 | ) | (15.32 | ) | (18.51 | ) | 11.27 | (12.60) | % | 1.60 | % | (0.81) | % | 182 | % | 4,651 | ||||||||||||||||||||||||||||||||
December 31, 2006 | 27.85 | (.11 | ) | 2.92 | 2.81 | — | (.88 | ) | (.88 | ) | 1.93 | 29.78 | 10.08 | % | 1.59 | % | (0.37) | % | 227 | % | 28,306 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 26.65 | (.25 | ) | 1.70 | 1.45 | — | (.25 | ) | (.25 | ) | 1.20 | 27.85 | 5.48 | % | 1.58 | % | (0.90) | % | 421 | % | 17,616 | |||||||||||||||||||||||||||||||||||
December 31, 2004 | 25.99 | (.22 | ) | 2.62 | 2.40 | — | (1.74 | ) | (1.74 | ) | .66 | 26.65 | 10.06 | % | 1.58 | % | (0.83) | % | 609 | % | 20,800 | |||||||||||||||||||||||||||||||||||
Technology Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 16.27 | (.08 | ) | (7.39 | ) | (7.47 | ) | — | (1.75 | ) | (1.75 | ) | (9.22 | ) | 7.05 | (45.41) | % | 1.60 | % | (0.63) | % | 277 | % | 7,238 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 14.74 | (.15 | ) | 1.68 | 1.53 | — | — | — | 1.53 | 16.27 | 10.38 | % | 1.56 | % | (0.91) | % | 584 | % | 33,123 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 13.92 | (.16 | ) | .98 | .82 | — | — | — | .82 | 14.74 | 5.89 | % | 1.59 | % | (1.09) | % | 403 | % | 23,215 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 13.50 | (.16 | ) | .58 | .42 | — | — | — | .42 | 13.92 | 3.11 | % | 1.62 | % | (1.21) | % | 541 | % | 19,145 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 14.88 | (.05 | ) | .03 | (.02 | ) | — | (1.36 | ) | (1.36 | ) | (1.38 | ) | 13.50 | 1.15 | % | 1.58 | % | (0.36) | % | 767 | % | 19,919 |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 57
FINANCIAL HIGHLIGHTS (concluded)
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.
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 | Income | Turnover | Period (000’s | |||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | (Loss)† | on Investments | Operations | Income | Gains | Distributions | Value | PERIOD | Return†† | Expenses | (Loss) | Rate | omitted) | ||||||||||||||||||||||||||||||||||||||||||
Telecommunications Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $23.89 | $ .24 | $ (11.49 | ) | $ (11.25 | ) | $ (.05 | ) | $ (4.65 | ) | $ (4.70 | ) | $ (15.95 | ) | $ 7.94 | (45.34) | % | 1.61 | % | 1.34 | % | 341 | % | $ 8,754 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 21.91 | .05 | 1.97 | 2.02 | (.04 | ) | — | (.04 | ) | 1.98 | 23.89 | 9.23 | % | 1.58 | % | 0.20 | % | 295 | % | 31,781 | ||||||||||||||||||||||||||||||||||||
December 31, 2006 | 18.81 | .15 | 3.52 | 3.67 | (.29 | ) | (.28 | ) | (.57 | ) | 3.10 | 21.91 | 19.51 | % | 1.59 | % | 0.72 | % | 264 | % | 33,337 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 20.53 | .19 | .06 | .25 | — | (1.97 | ) | (1.97 | ) | (1.72 | ) | 18.81 | 1.16 | % | 1.60 | % | 0.98 | % | 362 | % | 16,898 | |||||||||||||||||||||||||||||||||||
December 31, 2004 | 18.22 | (.02 | ) | 2.33 | 2.31 | — | — | — | 2.31 | 20.53 | 12.68 | % | 1.58 | % | (0.08) | % | 809 | % | 30,191 | |||||||||||||||||||||||||||||||||||||
Transportation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 14.85 | .04 | (3.80 | ) | (3.76 | ) | — | (.18 | ) | (.18 | ) | (3.94 | ) | 10.91 | (25.26) | % | 1.62 | % | 0.27 | % | 544 | % | 21,509 | |||||||||||||||||||||||||||||||||
December 31, 2007 | 35.05 | (.04 | ) | (2.24 | ) | (2.28 | ) | — | (17.92 | ) | (17.92 | ) | (20.20 | ) | 14.85 | (8.75) | % | 1.60 | % | (0.12) | % | 284 | % | 8,513 | ||||||||||||||||||||||||||||||||
December 31, 2006 | 32.64 | (.24 | ) | 2.65 | 2.41 | — | — | — | 2.41 | 35.05 | 7.38 | % | 1.59 | % | (0.68) | % | 249 | % | 29,549 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 31.45 | (.19 | ) | 2.64 | 2.45 | — | (1.26 | ) | (1.26 | ) | 1.19 | 32.64 | 8.48 | % | 1.58 | % | (0.63) | % | 258 | % | 31,378 | |||||||||||||||||||||||||||||||||||
December 31, 2004 | 25.97 | (.20 | ) | 6.09 | 5.89 | — | (.41 | ) | (.41 | ) | 5.48 | 31.45 | 22.99 | % | 1.57 | % | (0.71) | % | 473 | % | 47,333 | |||||||||||||||||||||||||||||||||||
Utilities Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 22.29 | .37 | (6.97 | ) | (6.60 | ) | (.08 | ) | (.20 | ) | (.28 | ) | (6.88 | ) | 15.41 | (29.57) | % | 1.61 | % | 1.90 | % | 293 | % | 34,343 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 22.38 | .32 | 2.59 | 2.91 | (.39 | ) | (2.61 | ) | (3.00 | ) | (.09 | ) | 22.29 | 12.86 | % | 1.58 | % | 1.32 | % | 244 | % | 65,532 | ||||||||||||||||||||||||||||||||||
December 31, 2006 | 19.09 | .36 | 3.64 | 4.00 | (.49 | ) | (.22 | ) | (.71 | ) | 3.29 | 22.38 | 20.96 | % | 1.59 | % | 1.73 | % | 169 | % | 71,719 | |||||||||||||||||||||||||||||||||||
December 31, 2005 | 17.34 | .34 | 1.50 | 1.84 | (.09 | ) | — | (.09 | ) | 1.75 | 19.09 | 10.56 | % | 1.60 | % | 1.80 | % | 342 | % | 39,943 | ||||||||||||||||||||||||||||||||||||
December 31, 2004 | 14.96 | .33 | 2.24 | 2.57 | (.19 | ) | — | (.19 | ) | 2.38 | 17.34 | 17.31 | % | 1.57 | % | 2.06 | % | 904 | % | 21,902 |
† | 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 the period December 31, 2003 through December 7, 2008 have been restated to reflect a 1:30 reverse stock split effective December 8, 2008 — See Note 11. | |
§ | Less than $.01 per share. |
58 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
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 December 31, 2008, the Trust consisted of fifty-eight separate Funds. This report covers the Sector Funds (the “Funds”), while the other 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.
The Sector Funds invest in a specific industry sector. To the extent that investments are concentrated in a single sector, the Funds are subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting such sector.
The Funds seek capital appreciation and invest substantially all of their assets in equity securities of companies involved in their sector. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.
Significant Accounting Policies
The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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.
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. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.
Investments, for which market quotations are not readily available, are fair valued as determined in good faith by Rydex Investments under 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. Taxable non-cash dividends are recorded as dividend income. 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 of net investment income and net realized gains, 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. 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.
E. 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. 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 0.85% of the average daily net assets of each of the Funds, except the Precious Metals Fund, which is 0.75% of the average daily net assets.
Rydex Investments provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each Fund. 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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 59 |
NOTES TO FINANCIAL STATEMENTS (continued)
Rydex Investments engages external service providers to perform other necessary services to the Trust, such as accounting and auditing related services, legal services, 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 an Investor 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.
3. 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.
Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-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 (fiscal years 2005-2008), and has concluded that no provision for income tax is required in the Funds’ financial statements.
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 losses deferred due to wash sales.
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. 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 tax character of distributions paid during the year ended December 31, 2008, was as follows:
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||
Banking Fund | $ | 31,117 | $ | — | $ | 31,117 | ||||||
Basic Materials Fund | 1,786,119 | 549,396 | 2,335,515 | |||||||||
Biotechnology Fund | — | — | — | |||||||||
Consumer Products Fund | 208,803 | 567,319 | 776,122 | |||||||||
Electronics Fund | — | — | — | |||||||||
Energy Fund | 1,012,358 | 369,802 | 1,382,160 | |||||||||
Energy Services Fund | 2,132,477 | 691,633 | 2,824,110 | |||||||||
Financial Services Fund | — | — | — | |||||||||
Health Care Fund | 777,941 | 1,033,100 | 1,811,041 | |||||||||
Internet Fund | — | — | — | |||||||||
Leisure Fund | 117,360 | 779,696 | 897,056 | |||||||||
Precious Metals Fund | — | — | — | |||||||||
Retailing Fund | — | 43,364 | 43,364 | |||||||||
Technology Fund | 1,726,089 | 12,082 | 1,738,171 | |||||||||
Telecommunications Fund | 1,453,922 | 1,141,718 | 2,595,640 | |||||||||
Transportation Fund | — | 426,402 | 426,402 | |||||||||
Utilities Fund | 441,479 | 174,095 | 615,574 |
60 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the year ended December 31, 2007, was as follows:
Ordinary | Long-Term | Return of | Total | |||||||||||||
Fund | Income | Capital Gain | Capital | Distributions | ||||||||||||
Banking Fund | $ 264,031 | $ | — | $ | — | $ 264,031 | ||||||||||
Basic Materials Fund | 3,917,113 | 2,503,205 | — | 6,420,318 | ||||||||||||
Biotechnology Fund | — | — | — | — | ||||||||||||
Consumer Products Fund | 2,278,448 | 1,008,343 | — | 3,286,791 | ||||||||||||
Electronics Fund | — | — | — | — | ||||||||||||
Energy Fund | 218,328 | 9,198,139 | — | 9,416,467 | ||||||||||||
Energy Services Fund | 124,501 | 4,863,788 | — | 4,988,289 | ||||||||||||
Financial Services Fund | 1,354,485 | 472,030 | 495,840 | 2,322,355 | ||||||||||||
Health Care Fund | 669,151 | 35,189 | — | 704,340 | ||||||||||||
Internet Fund | — | — | — | — | ||||||||||||
Leisure Fund | 2,084,487 | 615,217 | — | 2,699,704 | ||||||||||||
Precious Metals Fund | — | — | — | — | ||||||||||||
Retailing Fund | 909,107 | 1,881,428 | — | 2,790,535 | ||||||||||||
Technology Fund | — | — | — | — | ||||||||||||
Telecommunications Fund | 61,795 | — | — | 61,795 | ||||||||||||
Transportation Fund | — | 4,179,577 | — | 4,179,577 | ||||||||||||
Utilities Fund | 4,017,476 | 3,463,506 | — | 7,480,982 | ||||||||||||
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows: | ||||||||||||||||
Undistributed | Undistributed | |||||||||||||||
Ordinary | Long-Term | Net Unrealized | Capital Loss | |||||||||||||
Fund | Income | Capital Gain | Depreciation | Carryforward | ||||||||||||
Banking Fund | $435,757 | $ | — | $(10,197,338 | ) | $ (1,851,472 | )1 | |||||||||
Basic Materials Fund | 86,889 | 1,278,910 | (5,695,600 | ) | — | |||||||||||
Biotechnology Fund | — | — | (6,597,936 | ) | (5,234,603 | )1 | ||||||||||
Consumer Products Fund | 346,841 | — | (3,602,238 | ) | (1,227,582 | )1 | ||||||||||
Electronics Fund | — | — | (1,960,749 | ) | (10,645,204 | )1 | ||||||||||
Energy Fund | 576 | 3,006,826 | (2,434,632 | ) | — | |||||||||||
Energy Services Fund | — | 2,202,081 | (4,689,041 | ) | — | |||||||||||
Financial Services Fund | 264,133 | — | (8,374,741 | ) | (3,506,588 | )1 | ||||||||||
Health Care Fund | — | — | (8,440,868 | ) | (2,056,303 | )1 | ||||||||||
Internet Fund | — | — | (673,091 | ) | (6,217,639 | )1 | ||||||||||
Leisure Fund | — | — | (581,827 | ) | (2,536,674 | )1 | ||||||||||
Precious Metals Fund | — | — | (7,447,403 | ) | (1,058,873 | )1 | ||||||||||
Retailing Fund | — | — | (3,590,729 | ) | (447,828 | )1 | ||||||||||
Technology Fund | — | — | (3,966,217 | ) | (4,726,792 | )1 | ||||||||||
Telecommunications Fund | 180,137 | — | (3,386,822 | ) | (1,196,488 | )1 | ||||||||||
Transportation Fund | 41,800 | — | (6,093,738 | ) | (593,525 | )1 | ||||||||||
Utilities Fund | 777,787 | — | (1,751,095 | ) | (897,305 | )1 |
Capital Loss Carryforward amounts may be limited due to Treasury Regulations.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 61 |
NOTES TO FINANCIAL STATEMENTS (continued)
The Funds’ tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.
1 A summary of the expiration of the afore mentioned Capital Loss Carryforward is as follows:
Total | ||||||||||||||||||||||||||||||||
Expires in | Expires in | Expires in | Expires in | Expires in | Expires in | Expires in | Capital Loss | |||||||||||||||||||||||||
Fund | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Carryforward | ||||||||||||||||||||||||
Banking Fund | $ | — | $ | — | $ | — | $ | (470,556 | ) | $ | — | $ | — | $ | (1,380,916 | ) | $ | (1,851,472 | ) | |||||||||||||
Biotechnology Fund | (608,485 | ) | — | (1,880,980 | ) | (739,559 | ) | (1,048,743 | ) | (717,792 | ) | (239,044 | ) | (5,234,603 | ) | |||||||||||||||||
Consumer Products Fund | — | — | — | — | — | — | (1,227,582 | ) | (1,227,582 | ) | ||||||||||||||||||||||
Electronics Fund | (324,070 | ) | — | (549,313 | ) | (1,309,130 | ) | (6,193,088 | ) | (1,411,864 | ) | (857,739 | ) | (10,645,204 | ) | |||||||||||||||||
Financial Services Fund | — | — | — | — | — | (1,122,489 | ) | (2,384,099 | ) | (3,506,588 | ) | |||||||||||||||||||||
Health Care Fund | — | — | — | — | — | — | (2,056,303 | ) | (2,056,303 | ) | ||||||||||||||||||||||
Internet Fund | — | — | — | (384,202 | ) | — | — | (5,833,437 | ) | (6,217,639 | ) | |||||||||||||||||||||
Leisure Fund | — | — | — | — | — | — | (2,536,674 | ) | (2,536,674 | ) | ||||||||||||||||||||||
Precious Metals Fund | — | — | — | (935,222 | ) | — | — | (123,651 | ) | (1,058,873 | ) | |||||||||||||||||||||
Retailing Fund | — | — | — | — | — | — | (447,828 | ) | (447,828 | ) | ||||||||||||||||||||||
Technology Fund | — | — | — | — | — | — | (4,726,792 | ) | (4,726,792 | ) | ||||||||||||||||||||||
Telecommunications Fund | — | — | — | — | — | — | (1,196,488 | ) | (1,196,488 | ) | ||||||||||||||||||||||
Transportation Fund | — | — | — | — | — | — | (593,525 | ) | (593,525 | ) | ||||||||||||||||||||||
Utilities Fund | — | — | — | — | — | ��� | (897,305 | ) | (897,305 | ) |
At December 31, 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:
Tax | Tax | Net | ||||||||||||||
Tax | Unrealized | Unrealized | Unrealized | |||||||||||||
Fund | Cost | Gain | Loss | Loss | ||||||||||||
Banking Fund | $ | 33,054,969 | $ | — | $ | (10,197,338 | ) | $ | (10,197,338 | ) | ||||||
Basic Materials Fund | 29,505,999 | — | (5,695,600 | ) | (5,695,600 | ) | ||||||||||
Biotechnology Fund | 41,766,082 | — | (6,597,936 | ) | (6,597,936 | ) | ||||||||||
Consumer Products Fund | 28,431,069 | — | (3,602,238 | ) | (3,602,238 | ) | ||||||||||
Electronics Fund | 3,826,132 | — | (1,960,749 | ) | (1,960,749 | ) | ||||||||||
Energy Fund | 32,894,866 | 2,172,601 | (4,607,233 | ) | (2,434,632 | ) | ||||||||||
Energy Services Fund | 26,250,898 | 1,026,047 | (5,715,088 | ) | (4,689,041 | ) | ||||||||||
Financial Services Fund | 16,653,842 | — | (8,374,741 | ) | (8,374,741 | ) | ||||||||||
Health Care Fund | 44,322,251 | — | (8,440,868 | ) | (8,440,868 | ) | ||||||||||
Internet Fund | 3,067,641 | — | (673,091 | ) | (673,091 | ) | ||||||||||
Leisure Fund | 2,162,244 | — | (581,827 | ) | (581,827 | ) | ||||||||||
Precious Metals Fund | 68,617,858 | — | (7,447,403 | ) | (7,447,403 | ) | ||||||||||
Retailing Fund | 17,193,345 | — | (3,590,729 | ) | (3,590,729 | ) | ||||||||||
Technology Fund | 11,239,018 | — | (3,966,217 | ) | (3,966,217 | ) | ||||||||||
Telecommunications Fund | 12,166,578 | — | (3,386,822 | ) | (3,386,822 | ) | ||||||||||
Transportation Fund | 27,624,284 | — | (6,093,738 | ) | (6,093,738 | ) | ||||||||||
Utilities Fund | 36,090,452 | — | (1,751,095 | ) | (1,751,095 | ) |
4. 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 to ensure that its market value exceeds, 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 at December 31, 2008, were as follows:
Counterparty | Terms of Agreement | Face Value | Market Value | Repurchase Price | ||||||||||||
Credit Suisse Group | 0.03% due 01/02/09 | $49,841,465 | $49,841,465 | $49,841,548 | ||||||||||||
$49,841,465 | $49,841,548 | |||||||||||||||
62 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008, the collateral for the repurchase agreements in the joint account was as follows:
Security Type | Maturity Date | Rate | Par Value | Market Value | ||||||||||||
U.S. Treasury Note | 05/15/18 | 3.875 | % | $ | 43,815,000 | $50,842,661 | ||||||||||
$50,842,661 | ||||||||||||||||
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.
5. Fair Value Measurement
Effective January 1, 2008, the Funds adopted 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 following table summarizes the inputs used to value the Funds’ net assets at December 31, 2008:
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | |||||||||||||||||||||||
Investments | Other Financial | Investments | Other Financial | Investments | Other Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | In Securities | Instruments | In Securities | Instruments | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Banking Fund | $ | 22,857,631 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 22,857,631 | ||||||||||||||
Basic Materials Fund | 23,810,399 | — | — | — | — | — | 23,810,399 | |||||||||||||||||||||
Biotechnology Fund | 35,168,146 | — | — | — | — | — | 35,168,146 | |||||||||||||||||||||
Consumer Products Fund | 24,828,831 | — | — | — | — | — | 24,828,831 | |||||||||||||||||||||
Electronics Fund | 1,865,383 | — | — | — | — | — | 1,865,383 | |||||||||||||||||||||
Energy Fund | 30,460,234 | — | — | — | — | — | 30,460,234 | |||||||||||||||||||||
Energy Services Fund | 21,561,857 | — | — | — | — | — | 21,561,857 | |||||||||||||||||||||
Financial Services Fund | 8,279,101 | — | — | — | — | — | 8,279,101 | |||||||||||||||||||||
Health Care Fund | 35,881,383 | — | — | — | — | — | 35,881,383 | |||||||||||||||||||||
Internet Fund | 2,394,550 | — | — | — | — | — | 2,394,550 | |||||||||||||||||||||
Leisure Fund | 1,580,417 | — | — | — | — | — | 1,580,417 | |||||||||||||||||||||
Precious Metals Fund | 61,170,455 | — | — | — | — | — | 61,170,455 | |||||||||||||||||||||
Retailing Fund | 13,602,616 | — | — | — | — | — | 13,602,616 | |||||||||||||||||||||
Technology Fund | 7,272,801 | — | — | — | — | — | 7,272,801 | |||||||||||||||||||||
Telecommunications Fund | 8,779,756 | — | — | — | — | — | 8,779,756 | |||||||||||||||||||||
Transportation Fund | 21,530,546 | — | — | — | — | — | 21,530,546 | |||||||||||||||||||||
Utilities Fund | 34,339,357 | — | — | — | — | — | 34,339,357 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 63 |
NOTES TO FINANCIAL STATEMENTS (continued)
6. Securities Transactions
For the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
Basic | Biotech- | Consumer | Energy | |||||||||||||||||||||||||
Banking | Materials | nology | Products | Electronics | Energy | Services | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
Purchases | $ | 103,183,132 | $ | 111,629,914 | $ | 103,780,919 | $ | 84,994,168 | $ | 33,174,483 | $ | 113,198,201 | $ | 82,666,911 | ||||||||||||||
Sales | $ | 79,792,704 | $ | 161,385,018 | $ | 76,013,256 | $ | 92,658,008 | $ | 31,775,613 | $ | 156,342,263 | $ | 126,824,819 | ||||||||||||||
Financial | Health | Precious | ||||||||||||||||||||||||||
Services | Care | Internet | Leisure | Metals | Retailing | Technology | ||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||
Purchases | $ | 60,353,534 | $ | 107,446,921 | $ | 35,091,628 | $ | 18,771,225 | $ | 170,536,681 | $ | 41,175,280 | $ | 45,994,945 | ||||||||||||||
Sales | $ | 60,306,727 | $ | 96,171,096 | $ | 51,756,757 | $ | 27,734,071 | $ | 176,220,296 | $ | 27,917,102 | $ | 62,088,019 | ||||||||||||||
Telecommu- | Transpor- | |||||||||||||||||||||||||||
nications | tation | Utilities | ||||||||||||||||||||||||||
Fund | Fund | Fund | ||||||||||||||||||||||||||
Purchases | $ | 48,198,353 | $ | 102,265,807 | $ | 119,829,361 | ||||||||||||||||||||||
Sales | $ | 63,379,477 | $ | 82,536,750 | $ | 138,462,494 |
64 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (continued)
7. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:
Purchased through | Net Shares | |||||||||||||||||||||||||||||||
Shares Purchased | Dividend Reinvestment | Shares Redeemed | Purchased (Redeemed) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Banking Fund | 7,674,987 | 1,845,752 | 2,286 | 11,231 | (6,366,272 | ) | (2,204,564 | ) | 1,311,001 | (347,581 | ) | |||||||||||||||||||||
Basic Materials Fund | 3,369,025 | 5,190,655 | 137,141 | 154,149 | (4,573,538 | ) | (4,808,890 | ) | (1,067,372 | ) | 535,914 | |||||||||||||||||||||
Biotechnology Fund | 5,366,301 | 3,990,446 | — | — | (4,157,122 | ) | (3,865,363 | ) | 1,209,179 | 125,083 | ||||||||||||||||||||||
Consumer Products Fund | 2,837,579 | 2,294,742 | 29,299 | 87,391 | (3,067,404 | ) | (2,455,664 | ) | (200,526 | ) | (73,531 | ) | ||||||||||||||||||||
Electronics Fund | 3,207,474 | 6,529,568 | — | — | (3,147,576 | ) | (6,589,223 | ) | 59,898 | (59,655 | ) | |||||||||||||||||||||
Energy Fund | 3,864,204 | 5,614,940 | 66,642 | 242,255 | (4,973,246 | ) | (5,427,952 | ) | (1,042,400 | ) | 429,243 | |||||||||||||||||||||
Energy Services Fund | 2,869,511 | 5,771,123 | 182,083 | 130,277 | (4,008,447 | ) | (4,895,054 | ) | (956,853 | ) | 1,006,346 | |||||||||||||||||||||
Financial Services Fund | 3,936,662 | 2,645,597 | — | 103,354 | (4,005,875 | ) | (3,511,041 | ) | (69,213 | ) | (762,090 | ) | ||||||||||||||||||||
Health Care Fund | 4,549,619 | 3,090,996 | 88,430 | 23,261 | (4,219,410 | ) | (3,283,734 | ) | 418,639 | (169,477 | ) | |||||||||||||||||||||
Internet Fund | 2,275,129 | 4,841,463 | — | — | (3,427,511 | ) | (4,024,787 | ) | (1,152,382 | ) | 816,676 | |||||||||||||||||||||
Leisure Fund | 979,006 | 1,694,357 | 1,007,928 | 123,953 | (2,655,793 | ) | (2,536,595 | ) | (668,859 | ) | (718,285 | ) | ||||||||||||||||||||
Precious Metals Fund | 18,236,924 | 17,782,601 | — | — | (17,722,874 | ) | (16,689,984 | ) | 514,050 | 1,092,617 | ||||||||||||||||||||||
Retailing Fund | 4,688,769 | 1,126,720 | 6,405 | 238,507 | (3,297,878 | ) | (1,903,105 | ) | 1,397,296 | (537,878 | ) | |||||||||||||||||||||
Technology Fund | 3,653,213 | 6,680,204 | 258,272 | — | (4,920,488 | ) | (6,219,761 | ) | (1,009,003 | ) | 460,443 | |||||||||||||||||||||
Telecommunications Fund | 3,199,295 | 5,213,399 | 356,055 | 2,537 | (3,783,032 | ) | (5,406,876 | ) | (227,682 | ) | (190,940 | ) | ||||||||||||||||||||
Transportation Fund | 7,764,155 | 1,928,033 | 40,494 | 269,129 | (6,406,286 | ) | (2,466,872 | ) | 1,398,363 | (269,710 | ) | |||||||||||||||||||||
Utilities Fund | 8,051,669 | 7,620,878 | 41,093 | 331,751 | (8,803,682 | ) | (8,217,534 | ) | (710,920 | ) | (264,905 | ) |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 65 |
NOTES TO FINANCIAL STATEMENTS (concluded)
8. Portfolio Securities Loaned
During the year ended December 31, 2008, certain Funds lent 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. As of December 31, 2008, the Funds had ceased participation in securities lending.
9. Change in Independent Registered Public Accounting Firm
The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.
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. Management is evaluating the impact of FAS 161 on its current disclosures.
11. Leisure Fund 1-for-30 Reverse Split
Effective December 8, 2008, the Leisure Fund underwent a 1-for-30 reverse stock split. The effect of this transaction was to divide the number of outstanding shares of the Fund by thirty, resulting in a corresponding increase in the net asset value per share. There were no changes in the aggregate market values of the outstanding shares as a result of this transaction.
66 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
of the Rydex Variable Trust:
of the Rydex Variable Trust:
We have audited the accompanying statements of assets and liabilities of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (seventeen of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of
investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets for the year ended December 31, 2007 and the financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 25, 2008 expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.
McLean, Virginia
February 26, 2009
February 26, 2009
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 67 |
OTHER INFORMATION (Unaudited)
Tax Information
This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.
Of the ordinary income distributions paid during the year, the following Funds had the corresponding percentages qualify for the dividends received deduction for corporations:
Fund | % Qualifying | |||
Banking Fund | 100.00 | % | ||
Basic Materials Fund | 20.09 | % | ||
Consumer Products Fund | 37.44 | % | ||
Energy Fund | 66.29 | % | ||
Energy Services Fund | 20.18 | % | ||
Health Care Fund | 68.37 | % | ||
Leisure Fund | 16.69 | % | ||
Technology Fund | 7.29 | % | ||
Telecommunications Fund | 26.15 | % | ||
Utilities Fund | 43.01 | % |
The Funds’ distributions to shareholders included:
Consumer | ||||||||||||||||
Basic Materials | Products | Energy | Energy Services | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
From long-term capital gains, subject to the 15% rate gains category: | $ 549,396 | $ 567,319 | $ 369,802 | $ 691,633 | ||||||||||||
Health Care | Leisure | Retailing | Technology | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
From long-term capital gains, subject to the 15% rate gains category: | $1,033,100 | $ 779,696 | $ 43,364 | $ 12,082 | ||||||||||||
Telecommunications | Transportation | Utilities | ||||||||||||||
Fund | Fund | Fund | ||||||||||||||
From long-term capital gains, subject to the 15% rate gains category: | $1,141,718 | $426,402 | $174,095 |
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.
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 December 31 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.
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.
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.
68 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
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
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Carl G. Verboncoeur* | Rydex Series Funds – 2004 | 160 | ||
Trustee, President (1952) | Rydex Variable Trust – 2004 | |||
Rydex Dynamic Funds – 2004 | ||||
Rydex ETF Trust – 2004 |
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)
Michael P. Byrum* | Rydex Series Funds – 2005 | 160 | ||
Trustee, Vice President | Rydex Variable Trust – 2005 | |||
(1970) | Rydex Dynamic Funds – 2005 | |||
Rydex ETF Trust – 2005 |
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 | Length of Service As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
John O. Demaret | Rydex Series Funds – 1997 | 151 | ||
Trustee, Chairman of the | Rydex Variable Trust – 1998 | |||
Board (1940) | Rydex Dynamic Funds – 1999 | |||
Rydex ETF Trust – 2003 |
Principal Occupations During Past Five Years: Retired
Corey A. Colehour | Rydex Series Funds – 1993 | 151 | ||
Trustee (1945) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 |
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 | Rydex Series Funds – 1995 | 151 | ||
Trustee (1941) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 |
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
Werner E. Keller | Rydex Series Funds – 2005 | 151 | ||
Trustee (1940) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 |
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 69 |
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Thomas F. Lydon, Jr. | Rydex Series Funds – 2005 | 151 | ||
Trustee (1960) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 |
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville | Rydex Series Funds – 1997 | 151 | ||
Trustee (1942) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 |
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers | Rydex Series Funds – 1993 | 151 | ||
Trustee (1944) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 |
Principal Occupations During Past Five Years: Owner, Arrow Limousine
EXECUTIVE OFFICERS
Name, Position and | Principal Occupations | |
Year of Birth | During Past Five Years | |
Nick Bonos* Vice President and Treasurer (1963) | 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. |
70 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVASECF-ANN-2-1208x1209
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVASECF-ANN-2-1208x1209
GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888. |
This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1
1
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.
Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.
Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.
It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases); home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.
Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.
Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.
The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.
In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.
Sincerely,
Michael Byrum
President & Chief Investment Officer
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
2
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. Shareholders of a Fund 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 June 30, 2008 and ending December 31, 2008.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 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. Investors can assess a 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 a 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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 3
3
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)
Beginning | Ending | Expenses | ||||||||||||||
Expense | Account Value | Account Value | Paid During | |||||||||||||
Ratio | † | June 30, 2008 | December 31, 2008 | Period | * | |||||||||||
Table 1. Based on actual Fund return | ||||||||||||||||
Amerigo Fund | 1.71 | % | $ | 1,000.00 | $ | 618.40 | $ | 6.96 | ||||||||
Clermont Fund | 1.70 | % | 1,000.00 | 757.50 | 7.51 | |||||||||||
Berolina Fund | 1.79 | % | 1,000.00 | 619.50 | 7.29 | |||||||||||
Table 2. Based on hypothetical 5% return (before expenses) | ||||||||||||||||
Amerigo Fund | 1.71 | % | 1,000.00 | 1,016.54 | 8.67 | |||||||||||
Clermont Fund | 1.70 | % | 1,000.00 | 1,016.59 | 8.62 | |||||||||||
Berolina Fund | 1.79 | % | 1,000.00 | 1,016.14 | 9.07 |
* | 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 number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies. | |
† | Annualized and excludes expenses of the underlying funds in which the Funds invest. |
4 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
4
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THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
5
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)
AMERIGO FUND
OBJECTIVE: Amerigo seeks capital appreciation and long-term growth of capital without regard to current income.
Inception: July 1, 2003
Over the past 12 months, Rydex Amerigo Fund declined 43.09%. Over this same period, Amerigo Fund’s performance benchmark, the S&P 500 Index, had a total return of -37.00%. The critical event that drove investors to be extremely risk averse was Lehman Brothers Holdings, Inc. being “allowed” to file for bankruptcy on September 14. That set off a chain of events that caused a panic sell-off in the prices of equities and commodities as well as corporate bonds. Because of the indiscriminate selling, it became very difficult for investors to value securities. As a result, valuations converged, prices fell and diversification was of little benefit.
As a result of the investor panic, “perceived risk” appears to have exceeded actual risk in the pricing of several asset classes. Specifically, we witnessed:
• | The highest junk bond yields ever. | ||
• | Investment-grade corporate bonds that were selling at the highest spread over U.S. Treasuries since 1933. | ||
• | Commodity prices nearly 50% less expensive than they were six months ago. | ||
• | Real estate suffering its biggest cumulative price decline on record. |
• | Stock dividend yields that were above bond yields for the first time in 50 years. |
These rapid valuation changes caused us to reposition Amerigo Fund’s portfolio to seek to take advantage of these newly created opportunities.
During this reporting period, the major investment themes to Amerigo Fund’s trades were as follows:
• | While Amerigo is an equity fund, the cheapness of corporate bond valuations moved us to add investment-grade and high-yield bonds to Amerigo’s portfolio in October and November. Given the levels at which these bonds were trading, we were of the opinion that corporate bonds might produce equity-like returns. | ||
• | Positions in emerging and developed international securities were all trimmed as the U.S. dollar strengthened and commodity prices weakened. Proceeds were primarily added to corporate and high-yield bonds. | ||
• | At the sector level, positions in industrials and energy were reduced. |
While the investment environment remains challenging, the sharp decline we witnessed in the markets significantly discounts those risks. At this point in time, we do not need to see improvement in the economy; we merely need to see some signs of stabilization. We have begun to see early signs of that stabilization taking place in the bond market.
Sector Diversification (Market Exposure as % of Net Assets)
“Sector Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
iShares Russell 1000 | ||||
Growth Index Fund | 8.4 | % | ||
iShares MSCI Emerging Markets | ||||
Index Fund | 6.9 | % | ||
PowerShares QQQ | 6.7 | % | ||
iShares S&P Latin America 40 | ||||
Index Fund | 6.5 | % | ||
Vanguard Mid-Cap ETF | 4.6 | % | ||
iShares Russell Midcap Growth | ||||
Index Fund | 4.6 | % | ||
SPDR Trust, Series 1 | 4.0 | % | ||
DIAMONDS Trust, Series I | 3.5 | % | ||
SPDR S&P Biotech ETF | 3.4 | % | ||
iShares iBoxx $ Investment Grade | ||||
Corporate Bond Fund | 3.2 | % | ||
Top Ten Total | 51.8 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
6
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
Cumulative Fund Performance:
July 1, 2003 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (07/01/03) | ||||||||||
AMERIGO FUND | -43.09 | % | -2.45 | % | 0.44 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | 0.40 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
7
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)
CLERMONT FUND
OBJECTIVE: The investment objective of Clermont is a combination of current income and growth of capital.
Inception: July 1, 2003
Rydex Clermont Fund, a balanced fund, declined 30.07% for the 12 months ending December 31, 2008, as compared to its benchmark which had a total return of -14.79%. The blended index used for this comparison is comprised of 45% of the total return of the S&P 500 Index and 55% of the return of the Barclays Capital Credit Index. The critical event that drove investors to be extremely risk-averse was Lehman Brothers Holdings, Inc. being “allowed” to file for bankruptcy on September 14. That set off a chain of events that caused a panic sell-off in the prices of equities and commodities as well
as corporate bonds. As a result, Clermont Fund’s significant corporate bond holdings failed to provide the level of diversification normally generated by this fixed-income asset class.
During this period of time, Clermont Fund took advantage of the distressed level at which corporate bonds were trading by increasing its allocation to bonds from approximately 41% on June 30 to 57% during the fourth quarter. At current valuation levels, we continue to believe that corporate bonds have the potential to offer equity-like returns with less volatility.
Within Clermont Fund’s equity allocation, positions in emerging market equities and industrials were reduced. Both have a high correlation to global economic activity. Until economic activity around the world stabilizes, we elected to reduce these positions.
Sector Diversification (Market Exposure as % of Net Assets)
“Sector Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||||||||||
iShares Barclays Aggregate Bond Fund | 12.4 | % | ||||||||||
Vanguard Total Bond Market ETF | 10.3 | % | ||||||||||
iShares iBoxx $ Investment Grade | ||||||||||||
Corporate Bond Fund | 9.8 | % | ||||||||||
iShares iBoxx $ High Yield | ||||||||||||
Corporate Bond Fund | 9.0 | % | ||||||||||
Vanguard Short-Term Bond ETF | 6.5 | % | ||||||||||
SPDR Barclays High Yield Bond ETF | 4.3 | % | ||||||||||
iShares S&P Latin America 40 Index Fund | 3.6 | % | ||||||||||
iShares Russell 1000 Growth Index Fund | 3.2 | % | ||||||||||
SPDR Trust, Series 1 | 3.0 | % | ||||||||||
PowerShares QQQ | 2.6 | % | ||||||||||
Top Ten Total | 64.7 | % | ||||||||||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
8
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)
Cumulative Fund Performance:
July 1, 2003 – December 31, 2008
July 1, 2003 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (07/01/03) | ||||||||||
CLERMONT FUND | -30.07 | % | -2.40 | % | -0.77 | % | ||||||
S&P500 INDEX | -37.00 | % | -2.19 | % | 0.40 | % | ||||||
SYNTHETIC BALANCED BENCHMARK* | -14.79 | % | 1.78 | % | 2.84 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
* | Benchmark reflects a 45/55 ratio of the performance of the S&P 500 Index and the Barclays Capital Credit Index. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
9
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)
BEROLINA FUND
OBJECTIVE: The investment objective of Berolina is a combination of growth of capital and total return.
Inception: November 10, 2006
Over the past 12 months, Rydex Berolina Fund declined 42.14%. Over this same period, Berolina Fund’s performance benchmark generated a total return of -27.50%. The blended index used for this comparison was comprised of 75% of the total return of the S&P 500 Index and 25% of the return of the Barclays Capital Credit Index. The critical event that drove investors to be extremely risk averse was Lehman Brothers Holdings, Inc. being “allowed” to file for bankruptcy on September 14. That set off a chain of events that caused a panic sell-off in the prices of equities and commodities as well as corporate bonds. As a result, Berolina Fund’s holdings of corporate bond holdings failed to provide the level
of diversification normally generated by the fixed-income asset class.
Berolina Fund’s equity allocation, positions in Latin America and the Dow Jones Industrial Average Index were reduced. Both of the latter have a high correlation to global economic activity. Until economic activity around the world stabilizes and commodity-related prices firm up, we elected to reduce these positions.
During this period of time, Berolina Fund took advantage of the distressed level at which corporate bonds were trading by increasing its allocation to bonds from approximately 11% on June 30 to 27% during the fourth quarter. At current valuation levels, we continue to believe that corporate bonds have the potential to offer equity-like returns with less volatility.
Sector Diversification (Market Exposure as % of Net Assets)
“Sector Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||||||||||
iShares iBoxx $ Investment Grade | ||||||||||||
Corporate Bond Fund | 7.0 | % | ||||||||||
iShares MSCI Emerging Markets | ||||||||||||
Index Fund | 6.8 | % | ||||||||||
iShares iBoxx $ High Yield Corporate | ||||||||||||
Bond Fund | 6.2 | % | ||||||||||
iShares S&P Latin America 40 | ||||||||||||
Index Fund | 5.9 | % | ||||||||||
SPDR Barclays High Yield Bond ETF | 5.7 | % | ||||||||||
SPDR S&P Biotech ETF | 4.7 | % | ||||||||||
Consumer Staples Select Sector | ||||||||||||
SPDR Fund | 4.4 | % | ||||||||||
SPDR S&P China ETF | 2.5 | % | ||||||||||
iShares MSCI Pacific ex-Japan Index Fund | 2.5 | % | ||||||||||
Berkshire Hathaway, Inc. — Class A | 2.4 | % | ||||||||||
Top Ten Total | 48.1 | % | ||||||||||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
10
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)
Cumulative Fund Performance:
November 10, 2006 – December 31, 2008
November 10, 2006 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (11/10/06) | |||||||||||
BEROLINA FUND | -42.14 | % | -16.23 | % | ||||||||
S&P500 INDEX | -37.00 | % | -16.23 | % | ||||||||
SYNTHETIC BALANCED BENCHMARK* | -27.50 | % | 1.76 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
* | Benchmark reflects a 75/25 ratio of the performance of the S&P 500 Index and the Barclays Capital Credit Index. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS
December 31, 2008
AMERIGO FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 7.9% | ||||||||
FINANCIALS 2.5% | ||||||||
Berkshire Hathaway, Inc. — Class A* | 53 | $ | 5,119,800 | |||||
Total Financials | 5,119,800 | |||||||
INDUSTRIALS 1.4% | ||||||||
Emerson Electric Co. | 14,100 | 516,201 | ||||||
3M Co. | 8,500 | 489,090 | ||||||
Burlington Northern Santa Fe Corp. | 6,300 | 476,973 | ||||||
General Electric Co. | 29,400 | 476,280 | ||||||
Caterpillar, Inc. | 9,900 | 442,233 | ||||||
Honeywell International, Inc. | 13,000 | 426,790 | ||||||
Total Industrials | 2,827,567 | |||||||
ENERGY 1.2% | ||||||||
Exxon Mobil Corp. | 9,500 | 758,385 | ||||||
Occidental Petroleum Corp. | 8,100 | 485,919 | ||||||
Chevron Corp. | 6,300 | 466,011 | ||||||
Devon Energy Corp. | 6,400 | 420,544 | ||||||
Hess Corp. | 5,900 | 316,476 | ||||||
BP PLC — SP ADR | 2,200 | 102,828 | ||||||
Total Energy | 2,550,163 | |||||||
CONSUMER STAPLES 1.1% | ||||||||
Procter & Gamble Co. | 9,500 | 587,290 | ||||||
Philip Morris International, Inc. | 12,100 | 526,471 | ||||||
Coca-Cola Co. | 11,300 | 511,551 | ||||||
PepsiCo, Inc. | 8,500 | 465,545 | ||||||
Altria Group, Inc. | 5,400 | 81,324 | ||||||
Total Consumer Staples | 2,172,181 | |||||||
INFORMATION TECHNOLOGY 1.0% | ||||||||
Intel Corp. | 33,600 | 492,576 | ||||||
Cisco Systems, Inc.* | 26,800 | 436,840 | ||||||
Microsoft Corp. | 21,500 | 417,960 | ||||||
International Business Machines Corp. | 4,900 | 412,384 | ||||||
Apple, Inc.* | 3,500 | 298,725 | ||||||
Total Information Technology | 2,058,485 | |||||||
HEALTH CARE 0.3% | ||||||||
Johnson & Johnson, Inc. | 9,500 | 568,385 | ||||||
Total Health Care | 568,385 | |||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||
AT&T, Inc. | 17,600 | 501,600 | ||||||
Total Telecommunication Services | 501,600 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
MATERIALS 0.2% | ||||||||
E.I. du Pont de Nemours and Co. | 13,600 | $ | 344,080 | |||||
Total Materials | 344,080 | |||||||
Total Common Stocks (Cost $20,763,370) | 16,142,261 | |||||||
EXCHANGE TRADED FUNDS 90.4% | ||||||||
UNITED STATES OF AMERICA 61.4% | ||||||||
iShares Russell 1000 | ||||||||
Growth Index Fund | 462,000 | 17,121,720 | ||||||
PowerShares QQQ | 462,000 | 13,739,880 | ||||||
Vanguard Mid-Cap ETF | 220,200 | 9,514,842 | ||||||
iShares Russell Midcap | ||||||||
Growth Index Fund | 300,300 | 9,405,396 | ||||||
SPDR Trust, Series 1 | 91,300 | 8,238,912 | ||||||
DIAMONDS Trust, Series I | 81,600 | 7,156,320 | ||||||
SPDR S&P Biotech ETF | 130,200 | 6,994,344 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond Fund | 64,000 | 6,505,600 | ||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 79,700 | 6,063,576 | ||||||
iShares Russell 2000 Index Fund | 112,100 | 5,523,167 | ||||||
iShares Russell Midcap Index Fund | 90,100 | 5,380,772 | ||||||
Rydex Russell Top 50 ETF† | 70,200 | 5,010,174 | ||||||
SPDR Barclays Capital High Yield Bond ETF | 119,600 | 3,826,004 | ||||||
KBW Bank ETF | 160,200 | 3,506,778 | ||||||
Vanguard Materials ETF | 48,700 | 2,210,980 | ||||||
Technology Select Sector SPDR Fund | 141,000 | 2,172,810 | ||||||
Consumer Staples | ||||||||
Select Sector SPDR Fund | 81,100 | 1,935,857 | ||||||
Utilities Select Sector SPDR Fund | 59,900 | 1,738,897 | ||||||
Industrial Select Sector SPDR Fund | 60,200 | 1,413,496 | ||||||
Market Vectors-Coal ETF | 81,100 | 1,193,792 | ||||||
KBW Capital Markets ETF | 40,500 | 1,065,555 | ||||||
iShares Barclays 1-3 Year | ||||||||
Treasury Bond Fund | 11,000 | 931,238 | ||||||
iShares Barclays 3-7 Year Treasury Bond Fund | 8,000 | 924,560 | ||||||
Vanguard Mega Cap 300 ETF | 27,600 | 870,780 | ||||||
Vanguard Mega Cap 300 Growth ETF | 27,600 | 870,780 | ||||||
Vanguard Mega Cap 300 Value ETF | 27,600 | 866,088 | ||||||
iShares Barclays 7-10 Year Treasury Bond Fund | 8,000 | 788,240 | ||||||
Vanguard Small-Cap ETF | 16,200 | 691,416 | ||||||
Total United States of America | 125,661,974 | |||||||
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
AMERIGO FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
INTERNATIONAL 8.3% | ||||||||
iShares MSCI Emerging Markets Index Fund | 565,000 | $ | 14,108,050 | |||||
Vanguard Emerging Markets ETF | 67,800 | 1,606,860 | ||||||
SPDR S&P BRIC 40 ETF | 86,800 | 1,231,692 | ||||||
Total International | 16,946,602 | |||||||
LATIN AMERICA REGION 6.5% | ||||||||
iShares S&P Latin America 40 Index Fund | 524,000 | 13,346,280 | ||||||
Total Latin America Region | 13,346,280 | |||||||
CHINA 4.0% | ||||||||
iShares FTSE/Xinhua China 25 Index Fund | 214,900 | 6,270,782 | ||||||
SPDR S&P China ETF | 30,000 | 1,357,800 | ||||||
iShares S&P Asia 50 Index Fund | 21,800 | 549,360 | ||||||
Total China | 8,177,942 | |||||||
GLOBAL 3.5% | ||||||||
Vanguard Short-Term Bond ETF | 32,000 | 2,577,280 | ||||||
iShares S&P Global Materials Sector Index Fund | 40,500 | 1,584,765 | ||||||
iShares S&P Global Energy Sector Index Fund | 39,900 | 1,167,474 | ||||||
iShares S&P Global Industrials Sector Index Fund | 30,400 | 1,103,216 | ||||||
SPDR Gold Trust* | 8,000 | 692,400 | ||||||
iShares Silver Trust* | 8,000 | 90,000 | ||||||
Total Global | 7,215,135 | |||||||
ASIAN PACIFIC REGION 3.3% | ||||||||
Vanguard Pacific ETF | 121,000 | 5,302,220 | ||||||
SPDR S&P Emerging Asia Pacific ETF | 35,100 | 1,542,294 | ||||||
Total Asian Pacific Region | 6,844,514 | |||||||
BRAZIL 1.7% | ||||||||
iShares MSCI Brazil Index Fund | 101,000 | 3,524,900 | ||||||
Total Brazil | 3,524,900 | |||||||
ASIAN PACIFIC REGION EX JAPAN 0.8% | ||||||||
iShares MSCI Pacific ex-Japan Index Fund | 60,900 | 1,604,715 | ||||||
Total Asian Pacific Region ex Japan | 1,604,715 | |||||||
TAIWAN 0.5% | ||||||||
iShares MSCI Taiwan Index Fund, Inc. | 121,000 | 918,390 | ||||||
Total Taiwan | 918,390 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
HONG KONG 0.4% | ||||||||
iShares MSCI Hong Kong Index Fund | 80,100 | $ | 830,637 | |||||
Total Hong Kong | 830,637 | |||||||
Total Exchange Traded Funds (Cost $256,788,805) | 185,071,089 | |||||||
MUTUAL FUNDS 1.9% | ||||||||
First American Treasury Obligations Fund | 3,962,330 | 3,962,330 | ||||||
Total Mutual Funds (Cost $3,962,330) | 3,962,330 | |||||||
Total Investments 100.2% (Cost $281,514,505) | $ | 205,175,680 | ||||||
Liabilities in Excess of Other Assets – (0.2)% | $ | (322,619 | ) | |||||
Net Assets – 100.0% | $ | 204,853,061 |
* | Non-Income Producing Security. | |
† | Affiliated Fund | |
ADR—American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13 |
SCHEDULE OF INVESTMENTS
December 31, 2008
CLERMONT FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 3.8% | ||||||||
FINANCIALS 2.0% | ||||||||
Berkshire Hathaway, Inc. — Class A* | 10 | $ | 966,001 | |||||
Total Financials | 966,001 | |||||||
INDUSTRIALS 0.4% | ||||||||
Emerson Electric Co. | 1,100 | 40,271 | ||||||
3M Co. | 600 | 34,524 | ||||||
Burlington Northern Santa Fe Corp. | 450 | 34,069 | ||||||
General Electric Co. | 2,100 | 34,020 | ||||||
Caterpillar, Inc. | 760 | 33,949 | ||||||
Honeywell International, Inc. | 1,000 | 32,830 | ||||||
Total Industrials | 209,663 | |||||||
ENERGY 0.4% | ||||||||
Exxon Mobil Corp. | 800 | 63,864 | ||||||
Occidental Petroleum Corp. | 600 | 35,994 | ||||||
Devon Energy Corp. | 500 | 32,855 | ||||||
Chevron Corp. | 400 | 29,588 | ||||||
Hess Corp. | 450 | 24,138 | ||||||
BP PLC — SP ADR | 400 | 18,696 | ||||||
Total Energy | 205,135 | |||||||
CONSUMER STAPLES 0.4% | ||||||||
Coca-Cola Co. | 900 | 40,743 | ||||||
PepsiCo, Inc. | 700 | 38,339 | ||||||
Procter & Gamble Co. | 600 | 37,092 | ||||||
Philip Morris International, Inc. | 800 | 34,808 | ||||||
Altria Group, Inc. | 1,100 | 16,566 | ||||||
Total Consumer Staples | 167,548 | |||||||
INFORMATION TECHNOLOGY 0.3% | ||||||||
Cisco Systems, Inc.* | 2,100 | 34,230 | ||||||
International Business Machines Corp. | 350 | 29,456 | ||||||
Microsoft Corp. | 1,500 | 29,160 | ||||||
Intel Corp. | 1,700 | 24,922 | ||||||
Apple, Inc.* | 200 | 17,070 | ||||||
Total Information Technology | 134,838 | |||||||
HEALTH CARE 0.1% | ||||||||
Johnson & Johnson, Inc. | 600 | 35,898 | ||||||
Total Health Care | 35,898 | |||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||
AT&T, Inc. | 1,200 | 34,200 | ||||||
Total Telecommunication Services | 34,200 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
MATERIALS 0.1% | ||||||||
E.I. du Pont de Nemours and Co. | 1,050 | $ | 26,565 | |||||
Total Materials | 26,565 | |||||||
Total Common Stocks (Cost $2,134,342) | 1,779,848 | |||||||
EXCHANGE TRADED FUNDS 94.9% | ||||||||
UNITED STATES OF AMERICA 77.0% | ||||||||
iShares Barclays Aggregate Bond Fund | 56,200 | 5,838,056 | ||||||
Vanguard Total Bond Market ETF | 61,200 | 4,847,040 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond Fund | 45,500 | 4,625,075 | ||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 55,700 | 4,237,656 | ||||||
SPDR Barclays Capital High Yield Bond ETF | 64,000 | 2,047,360 | ||||||
iShares Russell 1000 Growth Index Fund | 40,700 | 1,508,342 | ||||||
SPDR Trust, Series 1 | 15,900 | 1,434,816 | ||||||
PowerShares QQQ | 40,700 | 1,210,418 | ||||||
SPDR S&P Biotech ETF | 20,600 | 1,106,632 | ||||||
Vanguard Consumer Staples VIPERs | 15,800 | 914,030 | ||||||
Vanguard Mid-Cap ETF | 20,600 | 890,126 | ||||||
DIAMONDS Trust, Series I | 8,000 | 701,600 | ||||||
Vanguard Mega Cap 300 Growth ETF | 20,200 | 637,310 | ||||||
Vanguard Mega Cap 300 ETF | 20,200 | 637,310 | ||||||
Vanguard Mega Cap 300 Value ETF | 20,200 | 633,876 | ||||||
Technology Select Sector SPDR Fund | 40,700 | 627,187 | ||||||
KBW Bank ETF | 28,500 | 623,865 | ||||||
KBW Capital Markets ETF | 20,200 | 531,462 | ||||||
iShares Russell 2000 Index Fund | 8,200 | 404,014 | ||||||
Consumer Staples Select Sector SPDR Fund | 15,800 | 377,146 | ||||||
Utilities Select Sector SPDR Fund | 12,400 | 359,972 | ||||||
Vanguard Small-Cap ETF | 8,200 | 349,976 | ||||||
Rydex Russell Top 50 ETF† | 4,000 | 285,480 | ||||||
Market Vectors-Coal ETF | 14,200 | 209,024 | ||||||
iShares Barclays 7-10 Year Treasury Bond Fund | 2,000 | 197,060 | ||||||
iShares Barclays 3-7 Year Treasury Bond Fund | 1,100 | 127,127 | ||||||
BlackRock Floating Rate Income Strategies Fund Inc | 12,200 | 106,872 | ||||||
Van Kampen Senior Income Trust | 40,500 | 103,680 | ||||||
BlackRock Floating Rate Income Strategies Fund II Inc | 12,200 | 103,212 |
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
CLERMONT FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Eaton Vance Floating-Rate Income Trust | 12,200 | $ | 97,844 | |||||
Nuveen Floating Rate Income Fund | 14,200 | 85,768 | ||||||
Pioneer Floating Rate Trust | 12,200 | 85,766 | ||||||
Nuveen Floating Rate Income Opportunity Fund | 14,200 | 76,112 | ||||||
Eaton Vance Senior Income Trust | 20,300 | 69,223 | ||||||
BlackRock Corporate High Yield Fund VI, Inc. | 8,900 | 55,803 | ||||||
BlackRock Corporate High Yield Fund V, Inc. | 8,900 | 53,667 | ||||||
BlackRock Corporate High Yield Fund, Inc. | 14,200 | 53,392 | ||||||
BlackRock Corporate High Yield Fund III, Inc. | 14,200 | 51,546 | ||||||
Dreyfus High Yield Strategies Fund | 14,200 | 31,666 | ||||||
Van Kampen High Income Trust II | 14,200 | 25,276 | ||||||
Helios High Income Fund, Inc. | 14,200 | 13,348 | ||||||
Total United States of America | 36,375,135 | |||||||
GLOBAL 7.8% | ||||||||
Vanguard Short-Term Bond ETF | 38,000 | 3,060,520 | ||||||
SPDR Gold Trust* | 4,100 | 354,855 | ||||||
Vanguard Intermediate-Term Bond ETF | 2,000 | 159,140 | ||||||
Western Asset High Income Fund II, Inc. | 12,200 | 61,610 | ||||||
iShares Silver Trust* | 4,100 | 46,125 | ||||||
Helios Multi-Sector High Income Fund, Inc. | 14,200 | 8,804 | ||||||
Total Global | 3,691,054 | |||||||
INTERNATIONAL 4.2% | ||||||||
iShares MSCI Emerging Markets Index Fund | 39,300 | 981,321 | ||||||
Vanguard Emerging Markets ETF | 39,300 | 931,410 | ||||||
SPDR S&P BRIC 40 ETF | 5,500 | 78,045 | ||||||
Total International | 1,990,776 | |||||||
LATIN AMERICA REGION 3.5% | ||||||||
iShares S&P Latin America 40 Index Fund | 66,200 | 1,686,114 | ||||||
Total Latin America Region | 1,686,114 | |||||||
ASIAN PACIFIC REGION 1.3% | ||||||||
Vanguard Pacific ETF | 8,400 | 368,088 | ||||||
SPDR S&P Emerging Asia Pacific ETF | 5,500 | 241,670 | ||||||
Total Asian Pacific Region | 609,758 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
CHINA 0.8% | ||||||||
SPDR S&P China ETF | 5,500 | $ | 248,930 | |||||
iShares S&P Asia 50 Index Fund | 5,500 | 138,600 | ||||||
Total China | 387,530 | |||||||
HONG KONG 0.3% | ||||||||
iShares MSCI Hong Kong Index Fund | 12,400 | 128,588 | ||||||
Total Hong Kong | 128,588 | |||||||
Total Exchange Traded Funds (Cost $54,439,731) | 44,868,955 | |||||||
MUTUAL FUNDS 1.1% | ||||||||
First American Treasury Obligations Fund | 513,001 | 513,001 | ||||||
Total Mutual Funds (Cost $513,001) | 513,001 | |||||||
Total Investments 99.8% (Cost $57,087,074) | $ | 47,161,804 | ||||||
Other Assets in Excess of Liabilities – 0.2% | $ | 97,533 | ||||||
Net Assets – 100.0% | $ | 47,259,337 |
* | Non-Income Producing Security. | |
† | Affiliated Fund | |
ADR—American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15 |
SCHEDULE OF INVESTMENTS
December 31, 2008
BEROLINA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 8.3% | ||||||||
FINANCIALS 2.5% | ||||||||
Berkshire Hathaway, Inc. — Class A* | 11 | $ | 1,062,600 | |||||
Total Financials | 1,062,600 | |||||||
CONSUMER STAPLES 1.5% | ||||||||
UST, Inc. | 1,800 | 124,884 | ||||||
Procter & Gamble Co. | 2,000 | 123,640 | ||||||
Philip Morris International, Inc. | 2,500 | 108,775 | ||||||
Coca-Cola Co. | 2,400 | 108,648 | ||||||
PepsiCo, Inc. | 1,800 | 98,586 | ||||||
British American Tobacco PLC — SP ADR | 1,200 | 63,528 | ||||||
Altria Group, Inc. | 2,400 | 36,144 | ||||||
Total Consumer Staples | 664,205 | |||||||
INDUSTRIALS 1.3% | ||||||||
Emerson Electric Co. | 2,900 | 106,169 | ||||||
3M Co. | 1,800 | 103,572 | ||||||
Burlington Northern Santa Fe Corp. | 1,300 | 98,423 | ||||||
General Electric Co. | 6,000 | 97,200 | ||||||
Caterpillar, Inc. | 2,000 | 89,340 | ||||||
Honeywell International, Inc. | 2,700 | 88,641 | ||||||
Total Industrials | 583,345 | |||||||
ENERGY 1.2% | ||||||||
Exxon Mobil Corp. | 2,000 | 159,660 | ||||||
Chevron Corp. | 1,300 | 96,161 | ||||||
Occidental Petroleum Corp. | 1,600 | 95,984 | ||||||
Devon Energy Corp. | 1,300 | 85,423 | ||||||
Hess Corp. | 1,200 | 64,368 | ||||||
BP PLC — SP ADR | 400 | 18,696 | ||||||
Total Energy | 520,292 | |||||||
INFORMATION TECHNOLOGY 1.0% | ||||||||
Intel Corp. | 6,900 | 101,154 | ||||||
Cisco Systems, Inc.* | 5,500 | 89,650 | ||||||
Microsoft Corp. | 4,400 | 85,536 | ||||||
International Business Machines Corp. | 1,000 | 84,160 | ||||||
Apple, Inc.* | 700 | 59,745 | ||||||
Total Information Technology | 420,245 | |||||||
HEALTH CARE 0.3% | ||||||||
Johnson & Johnson, Inc. | 2,000 | 119,660 | ||||||
Total Health Care | 119,660 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||
AT&T, Inc. | 3,600 | $ | 102,600 | |||||
Total Telecommunication Services | 102,600 | |||||||
MATERIALS 0.2% | ||||||||
E.I. du Pont de Nemours and Co. | 2,800 | 70,840 | ||||||
Total Materials | 70,840 | |||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||
Fortune Brands, Inc. | 1,100 | 45,408 | ||||||
Total Consumer Discretionary | 45,408 | |||||||
Total Common Stocks (Cost $4,837,838) | 3,589,195 | |||||||
EXCHANGE TRADED FUNDS 89.8% | ||||||||
UNITED STATES OF AMERICA 55.7% | ||||||||
iShares iBoxx $ Investment Grade Corporate Bond Fund | 30,000 | 3,049,500 | ||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 35,200 | 2,678,016 | ||||||
SPDR Barclays Capital High Yield | ||||||||
Bond ETF | 77,900 | 2,492,021 | ||||||
SPDR S&P Biotech ETF | 38,100 | 2,046,732 | ||||||
Consumer Staples Select Sector SPDR Fund | 80,200 | 1,914,374 | ||||||
Vanguard Mid-Cap ETF | 20,800 | 898,768 | ||||||
KBW Bank ETF | 36,500 | 798,985 | ||||||
iShares Russell 1000 Growth Index Fund | 20,600 | 763,436 | ||||||
KBW Capital Markets ETF | 25,000 | 657,750 | ||||||
Vanguard Large-Cap ETF | 16,000 | 652,000 | ||||||
Vanguard Growth ETF | 16,000 | 632,160 | ||||||
Vanguard Mega Cap 300 Growth ETF | 20,000 | 631,000 | ||||||
Vanguard Mega Cap 300 ETF | 20,000 | 631,000 | ||||||
Vanguard Mega Cap 300 | ||||||||
Value ETF | 20,000 | 627,600 | ||||||
PowerShares QQQ | 20,600 | 612,644 | ||||||
Materials Select Sector SPDR Fund | 26,100 | 593,514 | ||||||
Rydex Russell Top 50 ETF† | 8,300 | 592,371 | ||||||
SPDR Trust, Series 1 | 5,400 | 487,296 | ||||||
Vanguard Small-Cap ETF | 8,800 | 375,584 | ||||||
Market Vectors-Coal ETF | 25,000 | 368,000 | ||||||
iShares Dow Jones US Oil Equipment & Services Index Fund | 13,700 | 363,461 | ||||||
Technology Select Sector SPDR Fund | 20,600 | 317,446 | ||||||
PowerShares DB Base Metals Fund* | 18,800 | 223,908 | ||||||
BlackRock Floating Rate Income Strategies Fund Inc | 21,300 | 186,588 |
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
BEROLINA FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Eaton Vance Floating-Rate Income Trust | 22,500 | $ | 180,450 | |||||
BlackRock Floating Rate Income Strategies Fund II Inc | 21,300 | 180,198 | ||||||
Pioneer Floating Rate Trust | 23,800 | 167,314 | ||||||
Nuveen Floating Rate Income Fund | 24,000 | 144,960 | ||||||
Nuveen Floating Rate Income Opportunity Fund | 24,700 | 132,392 | ||||||
BlackRock Corporate High Yield Fund VI, Inc. | 20,800 | 130,416 | ||||||
BlackRock Corporate | ||||||||
High Yield Fund V, Inc. | 20,800 | 125,424 | ||||||
Van Kampen Senior Income Trust | 41,600 | 106,496 | ||||||
Eaton Vance Senior Income Trust | 27,900 | 95,139 | ||||||
BlackRock Corporate High Yield Fund, Inc. | 20,800 | 78,208 | ||||||
BlackRock Corporate High Yield Fund III, Inc. | 20,800 | 75,504 | ||||||
Dreyfus High Yield Strategies Fund | 20,800 | 46,384 | ||||||
Van Kampen High Income Trust II | 20,800 | 37,024 | ||||||
Vanguard Total Bond Market ETF | 400 | 31,680 | ||||||
iShares Russell 2000 Index Fund | 400 | 19,708 | ||||||
Helios High Income Fund, Inc. | 20,800 | 19,552 | ||||||
Total United States of America | 24,165,003 | |||||||
INTERNATIONAL 10.2% | ||||||||
iShares MSCI Emerging Markets Index Fund | 118,500 | 2,958,945 | ||||||
Vanguard Emerging Markets ETF | 36,600 | 867,420 | ||||||
SPDR S&P BRIC 40 ETF | 41,300 | 586,047 | ||||||
Total International | 4,412,412 | |||||||
LATIN AMERICA REGION 5.9% | ||||||||
iShares S&P Latin America 40 Index Fund | 100,300 | 2,554,641 | ||||||
Total Latin America Region | 2,554,641 | |||||||
GLOBAL 5.8% | ||||||||
iShares S&P Global Materials Sector Index Fund | 16,700 | 653,471 | ||||||
iShares S&P Global Industrials Sector Index Fund | 16,700 | 606,043 | ||||||
iShares S&P Global Energy Sector Index Fund | 12,000 | 351,120 | ||||||
SPDR Gold Trust* | 4,000 | 346,200 | ||||||
Vanguard Short-Term Bond ETF | 2,800 | 225,512 | ||||||
iPath Dow Jones-AIG Commodity Index Total Return ETN* | 4,700 | 165,722 | ||||||
Western Asset High Income Fund II, Inc. | 20,800 | 105,040 | ||||||
iShares Silver Trust* | 4,000 | 45,000 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Helios Multi-Sector High Income Fund, Inc. | 20,800 | $ | 12,896 | |||||
Total Global | 2,511,004 | |||||||
CHINA 5.4% | ||||||||
SPDR S&P China ETF | 23,700 | 1,072,662 | ||||||
iShares FTSE/Xinhua China 25 Index Fund | 32,200 | 939,596 | ||||||
iShares S&P Asia 50 Index Fund | 13,300 | 335,160 | ||||||
Total China | 2,347,418 | |||||||
ASIAN PACIFIC REGION 3.0% | ||||||||
Vanguard Pacific ETF | 16,700 | 731,794 | ||||||
SPDR S&P Emerging Asia Pacific ETF | 13,300 | 584,402 | ||||||
Total Asian Pacific Region | 1,316,196 | |||||||
ASIAN PACIFIC REGION EX JAPAN 2.4% | ||||||||
iShares MSCI Pacific ex-Japan Index Fund | 40,500 | 1,067,175 | ||||||
Total Asian Pacific Region ex Japan | 1,067,175 | |||||||
BRAZIL 1.0% | ||||||||
iShares MSCI Brazil Index Fund | 12,500 | 436,250 | ||||||
Total Brazil | 436,250 | |||||||
HONG KONG 0.4% | ||||||||
iShares MSCI Hong Kong Index Fund | 16,000 | 165,920 | ||||||
Total Hong Kong | 165,920 | |||||||
Total Exchange Traded Funds (Cost $55,637,804) | 38,976,019 | |||||||
MUTUAL FUNDS 2.0% | ||||||||
First American Treasury Obligations Fund | 848,572 | 848,572 | ||||||
Total Mutual Funds (Cost $848,572) | 848,572 | |||||||
Total Investments 100.1% (Cost $61,324,214) | $ | 43,413,786 | ||||||
Other Assets in Excess of Liabilities – (0.1)% | $ | (22,341 | ) | |||||
Net Assets – 100.0% | $ | 43,391,445 |
* | Non-Income Producing Security. | |
† | Affiliated Fund | |
ADR—American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17 |
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2008
Amerigo | Clermont | Berolina | ||||||||||
Fund | Fund | Fund | ||||||||||
Assets | ||||||||||||
Investment Securities | $ | 200,165,506 | $ | 46,876,324 | $ | 42,821,415 | ||||||
Investments in Affiliated Funds | 5,010,174 | 285,480 | 592,371 | |||||||||
Total Investments | 205,175,680 | 47,161,804 | 43,413,786 | |||||||||
Receivable for Fund Shares Sold | 10,172 | 99,171 | 4,487 | |||||||||
Investment Income Receivable | 405,767 | 141,392 | 152,642 | |||||||||
Receivable from Advisor | 25,000 | — | 25,000 | |||||||||
Total Assets | 205,616,619 | 47,402,367 | 43,595,915 | |||||||||
Liabilities | ||||||||||||
Payable for Fund Shares Redeemed | 205,513 | 30,779 | 47,343 | |||||||||
Investment Advisory Fees Payable | 155,521 | 35,687 | 32,725 | |||||||||
Transfer Agent and Administrative Fees Payable | 43,200 | 9,913 | 9,090 | |||||||||
Distribution and Service Fees Payable | 43,200 | 9,913 | 9,090 | |||||||||
Portfolio Accounting Fees Payable | 17,280 | 3,965 | 3,636 | |||||||||
Custody Fees Payable | 5,593 | 1,284 | 1,207 | |||||||||
Other Accrued Fees | 293,251 | 51,489 | 101,379 | |||||||||
Total Liabilities | 763,558 | 143,030 | 204,470 | |||||||||
Net Assets | $ | 204,853,061 | $ | 47,259,337 | $ | 43,391,445 | ||||||
Net Assets Consist Of | ||||||||||||
Paid-In Capital | $ | 316,280,813 | $ | 63,814,509 | $ | 72,036,740 | ||||||
Undistributed Net Investment Income | 1,135,397 | 1,340,035 | 964,113 | |||||||||
Accumulated Net Realized Loss on Investments | (36,224,324 | ) | (7,969,937 | ) | (11,698,980 | ) | ||||||
Net Unrealized Depreciation on Investments | (76,338,825 | ) | (9,925,270 | ) | (17,910,428 | ) | ||||||
NET ASSETS | $ | 204,853,061 | $ | 47,259,337 | $ | 43,391,445 | ||||||
Shares Outstanding | 9,465,663 | 2,612,380 | 2,694,245 | |||||||||
Net Asset Values | $ | 21.64 | $ | 18.09 | $ | 16.11 | ||||||
Cost of Investments | $ | 281,514,505 | $ | 57,087,074 | $ | 61,324,214 |
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
STATEMENTS OF OPERATIONS
Year Ended December 31, 2008
Amerigo | Clermont | Berolina | ||||||||||
Fund | Fund | Fund | ||||||||||
Investment Income | ||||||||||||
Interest | $ | — | $ | 10,591 | $ | 57,712 | ||||||
Income from Securities Lending, net | 624,613 | 104,598 | 171,595 | |||||||||
Dividends, Net of Foreign Tax Withheld | 5,558,092 | 2,230,874 | 1,904,125 | |||||||||
Dividends from Affiliated Funds | 168,432 | 8,855 | 21,047 | |||||||||
Total Income | 6,351,137 | 2,354,918 | 2,154,479 | |||||||||
Expenses | ||||||||||||
Investment Advisory Fees | 2,831,066 | 551,008 | 643,763 | |||||||||
Transfer Agent and Administrative Fees | 786,407 | 153,058 | 178,823 | |||||||||
Portfolio Accounting Fees | 295,781 | 61,223 | 71,529 | |||||||||
Trustees’ Fees* | 35,592 | 7,590 | 7,430 | |||||||||
Shareholder Service Fees | 786,407 | 153,058 | 178,823 | |||||||||
Custody Fees | 93,815 | 18,064 | 23,742 | |||||||||
Miscellaneous | 410,700 | 70,882 | 131,652 | |||||||||
Total Expenses | 5,239,768 | 1,014,883 | 1,235,762 | |||||||||
Less Expenses Reimbursed by Advisor | (25,000 | ) | — | (25,000 | ) | |||||||
Net Expenses | 5,214,768 | 1,014,883 | 1,210,762 | |||||||||
Net Investment Income | 1,136,369 | 1,340,035 | 943,717 | |||||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investment Securities | (34,973,443 | ) | (7,632,196 | ) | (11,683,836 | ) | ||||||
Total Net Realized Loss | (34,973,443 | ) | (7,632,196 | ) | (11,683,836 | ) | ||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investment Securities | (132,185,284 | ) | (15,254,103 | ) | (24,539,979 | ) | ||||||
Net Change in Unrealized Appreciation (Depreciation) | (132,185,284 | ) | (15,254,103 | ) | (24,539,979 | ) | ||||||
Net Loss on Investments | (167,158,727 | ) | (22,886,299 | ) | (36,223,815 | ) | ||||||
Net Decrease in Net Assets from Operations | $ | (166,022,358 | ) | $ | (21,546,264 | ) | $ | (35,280,098 | ) | |||
Foreign Tax Withheld | $ | — | $ | — | $ | 29 |
* | Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19 |
STATEMENTS OF CHANGES IN NET ASSETS
Amerigo Fund | Clermont Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income | $ | 1,136,369 | $ | 935,950 | $ | 1,340,035 | $ | 1,121,752 | ||||||||
Net Realized Gain (Loss) on Investments | (34,973,443 | ) | 15,635,297 | (7,632,196 | ) | 8,459,992 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (132,185,284 | ) | 22,707,195 | (15,254,103 | ) | (5,100,549 | ) | |||||||||
Net Increase (Decrease) in Net Assets from Operations | (166,022,358 | ) | 39,278,442 | (21,546,264 | ) | 4,481,195 | ||||||||||
Distributions to Shareholders from:* | ||||||||||||||||
Net Investment Income | (953,283 | ) | (1,267,780 | ) | (650,300 | ) | (1,188,265 | ) | ||||||||
Realized Gain on Investments | (4,735,912 | ) | (13,487,428 | ) | (909,727 | ) | (8,572,083 | ) | ||||||||
Total Distributions to Shareholders | (5,689,195 | ) | (14,755,208 | ) | (1,560,027 | ) | (9,760,348 | ) | ||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 85,058,638 | 110,973,073 | 34,231,270 | 38,517,427 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 5,689,195 | 14,755,208 | 1,560,027 | 9,760,348 | ||||||||||||
Cost of Shares Redeemed | (78,876,030 | ) | (64,968,711 | ) | (27,689,440 | ) | (80,543,715 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | 11,871,803 | 60,759,570 | 8,101,857 | (32,265,940 | ) | |||||||||||
Net Increase (Decrease) in Net Assets | (159,839,750 | ) | 85,282,804 | (15,004,434 | ) | (37,545,093 | ) | |||||||||
Net Assets—Beginning of Period | 364,692,811 | 279,410,007 | 62,263,771 | 99,808,864 | ||||||||||||
Net Assets—End of Period | $ | 204,853,061 | $ | 364,692,811 | $ | 47,259,337 | $ | 62,263,771 | ||||||||
Undistributed Net Investment Income— End of Period | $ | 1,135,397 | $ | 957,147 | $ | 1,340,035 | $ | 650,300 | ||||||||
* | For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains. |
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Berolina Fund | ||||||||
Year | Year | |||||||
Ended | Ended | |||||||
December 31, | December 31, | |||||||
2008 | 2007 | |||||||
$ | 943,717 | $ | 801,212 | |||||
(11,683,836 | ) | 1,980,907 | ||||||
(24,539,979 | ) | 6,601,470 | ||||||
(35,280,098 | ) | 9,383,589 | ||||||
(824,090 | ) | — | ||||||
(852,832 | ) | (1,124,847 | ) | |||||
(1,676,922 | ) | (1,124,847 | ) | |||||
20,454,297 | 69,340,665 | |||||||
1,676,922 | 1,124,847 | |||||||
(26,704,126 | ) | (13,791,956 | ) | |||||
(4,572,907 | ) | 56,673,556 | ||||||
(41,529,927 | ) | 64,932,298 | ||||||
84,921,372 | 19,989,074 | |||||||
$ | 43,391,445 | $ | 84,921,372 | |||||
$ | 964,113 | $ | 828,032 | |||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21 |
FINANCIAL HIGHLIGHTS
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.
RATIOS TO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized | Net Increase | AVERAGE NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSET | and | (Decrease) in Net | Distributions | Distributions | Net Increase | NET ASSET | Net Assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
VALUE, | Net | Unrealized | Asset Value | from Net | from Net | (Decrease) in | VALUE, | Total | Net | Portfolio | End of | |||||||||||||||||||||||||||||||||||||||||||||||||
BEGINNING | Investment | Gains (Losses) | Resulting from | Investment | Realized | Total | Net Asset | END OF | Investment | Total | Net | Investment | Turnover | Period (000’s | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | OF PERIOD | Income† | on Investments | Operations | Income§ | Gains§ | Distributions | Value | PERIOD | Return††† | Expenses†† | Expenses†† | Income | Rate | omitted) | |||||||||||||||||||||||||||||||||||||||||||||
Amerigo Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 39.13 | $ | .12 | $ | (17.01 | ) | $ | (16.89 | ) | $ | (.10 | ) | $ | (.50 | ) | $ | (.60 | ) | $ | (17.49 | ) | $ | 21.64 | (43.09) | % | 1.67 | % | 1.66 | % | 0.36 | % | 103 | % | $ | 204,853 | ||||||||||||||||||||||||
December 31, 2007 | 35.83 | .12 | 4.85 | 4.97 | (.14 | ) | (1.53 | ) | (1.67 | ) | 3.30 | 39.13 | 13.77 | % | 1.63 | % | 1.63 | % | 0.32 | % | 88 | % | 364,693 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 34.78 | .21 | 4.06 | 4.27 | (.03 | ) | (3.19 | ) | (3.22 | ) | 1.05 | 35.83 | 12.30 | % | 1.64 | % | 1.64 | % | 0.57 | % | 299 | % | 279,410 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 32.18 | .05 | 2.94 | 2.99 | (.04 | ) | (.35 | ) | (.39 | ) | 2.60 | 34.78 | 9.35 | % | 1.64 | % | 1.64 | % | 0.15 | % | 82 | % | 196,493 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 28.99 | .08 | 3.13 | 3.21 | (.02 | ) | — | (.02 | ) | 3.19 | 32.18 | 11.09 | % | 1.63 | % | 1.63 | % | 0.27 | % | 149 | % | 127,059 | ||||||||||||||||||||||||||||||||||||||
Clermont Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 26.79 | .51 | (8.60 | ) | (8.09 | ) | (.25 | ) | (.36 | ) | (.61 | ) | (8.70 | ) | 18.09 | (30.07) | % | 1.66 | % | 1.66 | % | 2.19 | % | 149 | % | 47,259 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 29.90 | .53 | 1.40 | 1.93 | (.61 | ) | (4.43 | ) | (5.04 | ) | (3.11 | ) | 26.79 | 6.23 | % | 1.64 | % | 1.64 | % | 1.73 | % | 163 | % | 62,264 | ||||||||||||||||||||||||||||||||||||
December 31, 2006 | 29.41 | .46 | 1.98 | 2.44 | (.64 | ) | (1.31 | ) | (1.95 | ) | .49 | 29.90 | 8.34 | % | 1.63 | % | 1.63 | % | 1.51 | % | 197 | % | 99,809 | |||||||||||||||||||||||||||||||||||||
December 31, 2005 | 28.57 | .33 | .78 | 1.11 | (.17 | ) | (.10 | ) | (.27 | ) | .84 | 29.41 | 3.92 | % | 1.64 | % | 1.64 | % | 1.15 | % | 129 | % | 108,667 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 27.05 | .32 | 1.27 | 1.59 | (.07 | ) | — | (.07 | ) | 1.52 | 28.57 | 5.89 | % | 1.63 | % | 1.63 | % | 1.17 | % | 124 | % | 91,092 | ||||||||||||||||||||||||||||||||||||||
Berolina Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 28.98 | .32 | (12.56 | ) | (12.24 | ) | (.31 | ) | (.32 | ) | (.63 | ) | (12.87 | ) | 16.11 | (42.14) | % | 1.73 | % | 1.70 | % | 1.32 | % | 120 | % | 43,391 | ||||||||||||||||||||||||||||||||||
December 31, 2007 | 25.55 | .34 | 3.48 | 3.82 | — | (.39 | ) | (.39 | ) | 3.43 | 28.98 | 14.91 | % | 1.62 | % | 1.62 | % | 1.22 | % | 171 | % | 84,921 | ||||||||||||||||||||||||||||||||||||||
December 31, 2006* | 25.00 | .40 | .34 | .74 | (.19 | ) | — | (.19 | ) | .55 | 25.55 | 2.96 | % | 1.63 | %** | 1.63 | %** | 10.65 | %** | 13 | % | 19,989 |
* | Since the commencement of operations: November 10, 2006. | |
** | Income ratios for the year ended December 31, 2006 were calculated for an abbreviated time frame and are not indicative of future class performance, and are annualized. | |
† | Calculated using the average daily shares outstanding for the year. | |
†† | Does not include expenses of the underlying funds in which the Funds invest. | |
††† | Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized. | |
§ | For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains. |
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
NOTES TO FINANCIAL STATEMENTS
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 December 31, 2008, the Trust consisted of fifty-eight separate funds. This report covers the CLS AdvisorOne Funds (the “Funds”), while the other funds are contained in separate reports.
Each Fund invests primarily in Exchange Traded Funds (“ETFs”), (“underlying funds”), acting similar to a “fund of funds”. The Funds seek to achieve their investment objectives by investing in underlying funds, in conjunction with a sparse amount of additional securities.
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.
CLS Investment Firm, LLC serves as investment sub-advisor to the Funds and is responsible for the day-to-day management of each Fund’s portfolio.
Significant Accounting Policies
The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. The information contained in these notes may not apply to every Fund in the Trust.
The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. The information contained in these notes may not apply to every Fund in the Trust.
A. Open-ended investment companies (“Mutual Funds”) are valued at their Net Asset Value (the “NAV”) as of the close of business, usually 4:00 p.m. on the valuation date. ETFs and closed-end investment companies (“closed-end funds”) are valued at the last quoted sales price.
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. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date. Short-term debt securities, if any, are valued at amortized cost, which approximates market value.
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. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in funds 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 of net investment income and net realized gains, 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. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.
E. 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.
F. 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 their investment strategies, the Funds, as well as the underlying funds they invest in, 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.
As part of their investment strategies, the Funds, as well as the underlying funds they invest in, 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.
A short sale is a transaction in which a Fund sells an equity or fixed income security it does not own. If the security sold
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 the 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. The Trust monitors the counterparty credit risk.
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 annual percentage rate of 0.90% of the average daily net assets of each Fund.
Under the terms of an investment advisory contract, the Trust pays Rydex Investments investment advisory fees calculated at an annual percentage rate of 0.90% of the average daily net assets of each Fund.
Rydex Investments pays the Sub-Advisor out of the advisory fees it receives. In addition, Rydex Investments bears all of its own costs associated with providing these services and the expenses of the Trustees that are affiliated with Rydex Investments. Rydex Investments may make payments from its own resources to broker-dealers and other financial institutions in connection with the sale of Fund shares.
Each Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other underlying fund expenses) of the underlying funds in which the Fund invests.
Rydex Investments provides transfer agent and administrative services to the Funds calculated at an annual percentage rate of 0.25% of the average daily net assets of each Fund.
Rydex Investments also provides accounting services to the Funds 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 of the Funds.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (continued)
Rydex Investments engages external service providers to perform other necessary services for the Trust, such as auditing services, legal services, 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.
The Trust has adopted a Distribution 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.
The Board approved the use of a Distribution Plan for which the Distributor and other Service Providers may receive compensation. If a Service Provider provides distribution services, the Trust will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its fees. The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services. Although approved, for the year ended December 31, 2008, this plan was not utilized.
Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.
4. Federal Income Tax Information
The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code (IRC) applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.
The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code (IRC) applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.
Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-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.
The Advisor has submitted a request for a Closing Agreement with the Internal Revenue Service (IRS) on behalf of the Amerigo Fund and the Berolina Fund in order to resolve uncertainty regarding the treatment of gains realized in 2008 on the disposition of certain securities for purposes of complying with the income qualification test under Subchapter M of the IRC. At December 31, 2008, each Fund has recorded an estimate of $50,000 associated with obtaining the Closing Agreement, and the Advisor has agreed to reimburse 50% of that amount. The actual cost of the Agreement could be up to $406,479 for the Amerigo Fund, and $340,861 for the Berolina Fund. In the event that the actual cost to each fund exceeds the recorded estimate of $50,000, the portion of this amount to be borne by the Funds is subject to approval by the Board of Trustees.
Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal years 2005 —2008), and has concluded that no provision for income tax is required in the Funds’ financial statements.
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 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. 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’ tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.
The tax character of distributions paid during 2008 was as follows:
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||
Amerigo Fund | $ | 3,038,794 | $ | 2,650,401 | $ | 5,689,195 | ||||||
Clermont Fund | 650,300 | 909,727 | 1,560,027 | |||||||||
Berolina Fund | 1,664,277 | 12,645 | 1,676,922 |
The tax character of distributions paid during 2007 was as follows:
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||
Amerigo Fund | $ | 10,211,488 | $ | 4,543,720 | $ | 14,755,208 | ||||||
Clermont Fund | 4,731,756 | 5,028,592 | 9,760,348 | |||||||||
Berolina Fund | 1,124,847 | — | 1,124,847 |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25 |
NOTES TO FINANCIAL STATEMENTS (continued)
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows:
Undistributed | Undistributed | |||||||||||||||
Ordinary | Long-Term | Net Unrealized | Capital Loss | |||||||||||||
Fund | Income | Capital Gain | Depreciation | Carryforward | ||||||||||||
Amerigo Fund | $ | 1,134,815 | $ | — | $ | (79,662,214 | ) | $ | (32,900,353 | )1 | ||||||
Clermont Fund | 1,340,021 | — | (10,756,648 | ) | (7,138,545 | )1 | ||||||||||
Berolina Fund | 964,099 | — | (18,265,854 | ) | (7,356,665 | )1 |
Capital Loss Carryforward amounts may be limited due to Treasury Regulations.
1 Expires in 2016.
At December 31, 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:
Tax | Tax | Net | ||||||||||||||
Tax | Unrealized | Unrealized | Unrealized | |||||||||||||
Fund | Cost | Gain | Loss | Loss | ||||||||||||
Amerigo Fund | $ | 284,837,894 | $ | 1,286,881 | $ | (80,949,095 | ) | $ | (79,662,214 | ) | ||||||
Clermont Fund | 57,918,452 | 861,610 | (11,618,258 | ) | (10,756,648 | ) | ||||||||||
Berolina Fund | 61,679,640 | 524,715 | (18,790,569 | ) | (18,265,854 | ) |
Post-October Losses Deferred
Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax year. For the year ended December 31, 2008, the following amounts of realized capital and currency losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2009:
Fund | Capital | |||||||||||||||
Berolina Fund | (3,986,875 | ) |
5. Fair Value Measurement
Effective January 1, 2008, the Funds adopted 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 following table summarizes the inputs used to value the Funds’ net assets at December 31, 2008:
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | |||||||||||||||||||||||
Investments | Other Financial | Investments | Other Financial | Investments | Other Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | In Securities | Instruments | In Securities | Instruments | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Amerigo Fund | $ | 205,175,680 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 205,175,680 | ||||||||||||||
Clermont Fund | 47,161,804 | — | — | — | — | — | 47,161,804 | |||||||||||||||||||||
Berolina Fund | 43,413,786 | — | — | — | — | — | 43,413,786 |
6. Securities Transactions
For the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
Amerigo | Clermont | Berolina | ||||||||||
Fund | Fund | Fund | ||||||||||
Purchases | $ | 338,035,468 | $ | 98,907,593 | $ | 87,068,009 | ||||||
Sales | $ | 328,409,875 | $ | 90,772,837 | $ | 92,983,251 |
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
7. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:
Purchased through | Net Shares | |||||||||||||||||||||||||||||||
Shares Purchased | Dividend Reinvestment | Shares Redeemed | Purchased (Redeemed) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Amerigo | 2,452,832 | 2,858,045 | 274,177 | 369,897 | (2,581,580 | ) | (1,706,648 | ) | 145,429 | 1,521,294 | ||||||||||||||||||||||
Clermont | 1,431,071 | 1,233,260 | 90,594 | 359,365 | (1,233,274 | ) | (2,607,229 | ) | 288,391 | (1,014,604 | ) | |||||||||||||||||||||
Berolina | 785,239 | 2,609,248 | 108,679 | 37,950 | (1,129,943 | ) | (499,164 | ) | (236,025 | ) | 2,148,034 |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27
NOTES TO FINANCIAL STATEMENTS (concluded)
8. Portfolio Securities Loaned
During the year ended December 31, 2008, certain Funds lent 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. As of December 31, 2008, the Funds had ceased participation in securities lending.
9. Change in Independent Registered Public Accounting Firm
The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.
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. Management is evaluating the impact of FAS 161 on its current disclosures.
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
of the Rydex Variable Trust:
of the Rydex Variable Trust:
We have audited the accompanying statements of assets and liabilities of Amerigo Fund, Clermont Fund and Berolina Fund (three of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets for the year ended December 31, 2007 and the financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 25, 2008 expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.
McLean, Virginia
February 27, 2009
February 27, 2009
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29
OTHER INFORMATION (Unaudited)
Tax Information
This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.
The Funds’ distributions to shareholders included:
Amerigo | Clermont | Berolina | ||||||||||
Fund | Fund | Fund | ||||||||||
From long-term capital gains, subject to the 15% rate gains category: | $ | 2,650,401 | $ | 909,727 | $ | 12,645 |
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.
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.
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
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
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Carl G. Verboncoeur* | Rydex Series Funds – 2004 | 160 | ||
Trustee, President (1952) | Rydex Variable Trust – 2004 | |||
Rydex Dynamic Funds – 2004 | ||||
Rydex ETF Trust – 2004 |
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)
Michael P. Byrum* | Rydex Series Funds – 2005 | 160 | ||
Trustee, Vice President | Rydex Variable Trust – 2005 | |||
(1970) | Rydex Dynamic Funds – 2005 | |||
Rydex ETF Trust – 2005 |
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
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
John O. Demaret | Rydex Series Funds – 1997 | 151 | ||
Trustee, Chairman of the | Rydex Variable Trust – 1998 | |||
Board (1940) | Rydex Dynamic Funds – 1999 | |||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Retired | ||||
Corey A. Colehour | Rydex Series Funds – 1993 | 151 | ||
Trustee (1945) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Rydex ETF Trust – 2003 | ||||
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 | Rydex Series Funds – 1995 | 151 | ||
Trustee (1941) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group | ||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Werner E. Keller | Rydex Series Funds – 2005 | 151 | ||
Trustee (1940) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 | ||||
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001) | ||||
Thomas F. Lydon, Jr. | Rydex Series Funds – 2005 | 151 | ||
Trustee (1960) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 | ||||
Principal Occupations During Past Five Years: President, Global Trends Investments | ||||
Patrick T. McCarville | Rydex Series Funds – 1997 | 151 | ||
Trustee (1942) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc. | ||||
Roger Somers | Rydex Series Funds – 1993 | 151 | ||
Trustee (1944) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Owner, Arrow Limousine | ||||
EXECUTIVE OFFICERS | ||
Name, Position and | Principal Occupations | |
Year of Birth | During Past Five Years | |
Nick Bonos* Vice President and Treasurer (1963) | 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. |
32 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAAO-2-1208x1209
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAAO-2-1208x1209
DECEMBER 31, 2008
RYDEX VARIABLE TRUST ANNUAL REPORT
DOMESTIC EQUITY FUNDS
MULTI-CAP CORE EQUITY FUND
SECTOR ROTATION FUND
ALTERNATIVE INVESTMENT FUNDS
ABSOLUTE RETURN STRATEGIES FUND
ALTERNATIVE STRATEGIES ALLOCATION FUND
COMMODITIES STRATEGY FUND
HEDGED EQUITY FUND
INTERNATIONAL ROTATION FUND
MANAGED FUTURES STRATEGY FUND
REAL ESTATE FUND
STRENGTHENING DOLLAR 2x STRATEGY FUND
WEAKENING DOLLAR 2x STRATEGY FUND
GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888. |
This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1 |
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.
Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.
Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.
It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases), home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.
Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.
Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.
The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.
In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.
Sincerely,
Michael Byrum
President & Chief Investment Officer
President & Chief Investment Officer
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
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.
Index | Index | Fund | Fund | |||||||||||||||||||||
Level | Performance | Expectation | Fund NAV | Performance | Assessment | |||||||||||||||||||
Start | 100 | $ | 10.00 | |||||||||||||||||||||
Day 1 | 106 | 6.0 | % | 9.0 | % | $ | 10.90 | 9.0 | % | In line | ||||||||||||||
Day 2 | 99 | -6.6 | % | -9.9 | % | $ | 9.82 | -9.9 | % | In line | ||||||||||||||
Cumulative | -1.0 | % | -1.5 | % | -1.8 | % | -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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 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. Shareholders of a Fund 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 June 30, 2008 and ending December 31, 2008.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 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. Investors can assess a 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 a 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 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)
Beginning | Ending | Expenses | ||||||||||||||
Expense | Account Value | Account Value | Paid During | |||||||||||||
Ratio | † | June 30, 2008 | December 31, 2008 | Period | * | |||||||||||
Table 1. Based on actual Fund return | ||||||||||||||||
Multi-Cap Core Equity Fund | 1.07 | % | $1,000.00 | $ | 681.10 | $ | 4.52 | |||||||||
Sector Rotation Fund | 1.72 | % | 1,000.00 | 641.60 | 7.10 | |||||||||||
Absolute Return Strategies Fund | 1.84 | % | 1,000.00 | 830.70 | 8.47 | |||||||||||
Alternative Strategies Allocation Fund†† | 0.00 | % | 1,000.00 | 796.30 | — | |||||||||||
Commodities Strategy Fund | 1.31 | % | 1,000.00 | 366.00 | 4.50 | |||||||||||
Hedged Equity Fund | 1.84 | % | 1,000.00 | 810.80 | 8.38 | |||||||||||
International Rotation Fund | 1.68 | % | 1,000.00 | 698.30 | 7.17 | |||||||||||
Managed Futures Strategy Fund** | 2.21 | % | 1,000.00 | 964.00 | 3.20 | |||||||||||
Real Estate Fund | 1.64 | % | 1,000.00 | 629.40 | 6.72 | |||||||||||
Strengthening Dollar 2x Strategy Fund | 1.73 | % | 1,000.00 | 1,205.30 | 9.59 | |||||||||||
Weakening Dollar 2x Strategy Fund | 1.74 | % | 1,000.00 | 781.70 | 7.79 | |||||||||||
Table 2. Based on hypothetical 5% return (before expenses) | ||||||||||||||||
Multi-Cap Core Equity Fund | 1.07 | % | 1,000.00 | 1,019.76 | 5.43 | |||||||||||
Sector Rotation Fund | 1.72 | % | 1,000.00 | 1,016.49 | 8.72 | |||||||||||
Absolute Return Strategies Fund | 1.84 | % | 1,000.00 | 1,015.89 | 9.32 | |||||||||||
Alternative Strategies Allocation Fund†† | 0.00 | % | 1,000.00 | 1,025.14 | — | |||||||||||
Commodities Strategy Fund | 1.31 | % | 1,000.00 | 1,018.55 | 6.65 | |||||||||||
Hedged Equity Fund | 1.84 | % | 1,000.00 | 1,015.89 | 9.32 | |||||||||||
International Rotation Fund | 1.68 | % | 1,000.00 | 1,016.69 | 8.52 | |||||||||||
Managed Futures Strategy Fund** | 2.21 | % | 1,000.00 | 1,014.03 | 11.29 | |||||||||||
Real Estate Fund | 1.64 | % | 1,000.00 | 1,016.89 | 8.31 | |||||||||||
Strengthening Dollar 2x Strategy Fund | 1.73 | % | 1,000.00 | 1,016.44 | 8.77 | |||||||||||
Weakening Dollar 2x Strategy Fund | 1.74 | % | 1,000.00 | 1,016.39 | 8.82 |
* | 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 number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies. | |
** | Since the commencement of operations: November 7, 2008. | |
† | This ratio represents annualized Total Expenses, which include dividend expense from securities sold short. Excluding short dividend expense, the operating expense ratio would be 0.68% and 0.69% lower for the Absolute Return Strategies Fund and Hedged Equity Fund, respectively. | |
†† | Does not include expenses of the underlying funds in which the Fund invests. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5 |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)
MULTI-CAP CORE EQUITY FUND
OBJECTIVE: Seeks long-term capital appreciation.
Inception: November 29, 2005
Rydex Multi-Cap Core Equity Fund returned - -38.96% for the one-year period ending December 31, 2008 versus the broad market Russell 3000 Index’s 37.31% decline. The Fund allocates its assets generally in equal proportions to the large-, mid- and small-cap size groups. Large-cap stocks outperformed mid-cap but did not beat small-cap equities. The Fund’s size allocation neither added nor detracted significantly to returns.
The Fund uses a quantitative stock ranking model as part of the investment process and also utilizes momentum factors. Of the three factor groups used in the Fund, momentum factors proved to be the strongest for the year. Weak performance in the growth and value factors more than offset the benefit provided by momentum factors in 2008. The stock selection model was particularly weak in energy services and industrials, but performed well in the financial services and utilities sectors.
Cumulative Fund Performance
November 29, 2005 – December 31, 2008
November 29, 2005 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (11/29/05) | |||||||||||
MULTI-CAP CORE EQUITY FUND | -38.96 | % | -12.49 | % | ||||||||
RUSSELL 3000 INDEX | -37.31 | % | -8.51 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 3000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Exxon Mobil Corp. | 1.7 | % | ||
Procter & Gamble Co. | 0.9 | % | ||
JPMorgan Chase & Co. | 0.8 | % | ||
International Business Machines Corp. | 0.7 | % | ||
Chevron Corp. | 0.7 | % | ||
Wells Fargo & Co. | 0.7 | % | ||
AT&T, Inc. | 0.6 | % | ||
Hewlett-Packard Co. | 0.6 | % | ||
Abbott Laboratories | 0.6 | % | ||
Verizon Communications, Inc. | 0.6 | % | ||
Top Ten Total | 7.9 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
SECTOR ROTATION FUND
OBJECTIVE: Seeks long-term capital appreciation.
Inception: May 1, 2002
Rydex Sector Rotation Fund returned -40.73% for the one-year period ending December 31, 2008. To no one’s surprise, it was a tough year for both the stock market and for the performance of the Fund. The S&P 500 Index fell 37.00% and the Fund trailed these results. Performance was negatively impacted the most by the Fund’s heavy exposure to industrials, which were hit hard due to the deepening financial crisis and fear of a global slowdown. On the other hand, the Fund also benefited from some well-timed moves into and out of the basic materials and energy sectors. During the first half of the year, the Fund held heavy exposures to the basic material and energy sectors. As momentum waned in these areas (following the decline of oil and commodities), we moved to reduce our exposures. At the more granular industry level, we made allocation decisions involving energy equipment & services, metals & mining, tobacco, capital markets and insurance—all
Cumulative Fund Performance
May 1, 2002 – December 31, 2008
May 1, 2002 – December 31, 2008
of which benefited the Fund during the year. Allocation decisions made to oil gas & consumables, construction & engineering, marine, pharmaceuticals and air freight & logistics negatively impacted results.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (05/01/02) | ||||||||||
SECTOR ROTATION FUND | -40.73 | % | 0.40 | % | 0.42 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -0.86 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Procter & Gamble Co. | 3.8 | % | ||
Genentech, Inc. | 3.0 | % | ||
Wal-Mart Stores, Inc. | 2.6 | % | ||
Amgen, Inc. | 2.5 | % | ||
Apollo Group, Inc. — Class A | 2.5 | % | ||
Gilead Sciences, Inc. | 2.3 | % | ||
AT&T, Inc. | 2.2 | % | ||
H&R Block, Inc. | 2.1 | % | ||
Verizon Communications, Inc. | 1.7 | % | ||
Unilever NV | 1.7 | % | ||
Top Ten Total | 24.4 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7 |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ABSOLUTE RETURN
STRATEGIES FUND
STRATEGIES FUND
OBJECTIVE: Seeks to provide capital appreciation consistent with the return and risk characteristics of the hedge fund universe. The secondary objective is to achieve these returns with low correlation to, and less volatility than, equity indices.
Inception: November 29, 2005
Hedge funds experienced their worst year on record in 2008. Only two of the 10 hedge fund strategies—global macro and merger arbitrage—tracked by Hedge Fund Research’s (“HFRX”) indices provided positive returns for the period. On the other end of the spectrum, the convertible arbitrage strategy dropped 58.20%, giving it the distinction of being the sole hedge fund strategy capable of underperforming the 37.00% loss posted by the S&P 500 Index. The HFRX Global Hedge Fund Index tracked by HFRX lost 23.10% for the period.
Rydex Absolute Return Strategies Fund lost 18.72% for the one-year period ending December 31, 2008. Relative to the HFRX Global Hedge Fund Index, the Fund benefited from greater exposure to the better-performing hedge fund strategies
Cumulative Fund Performance
November 29, 2005 – December 31, 2008
November 29, 2005 – December 31, 2008
including global macro, merger arbitrage and equity market neutral. The biggest detractor from Fund performance came from the Fund’s hedged equity allocation, which was punished by both long equity and short volatility exposure.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (11/29/05) | |||||||||||
ABSOLUTE RETURN STRATEGIES FUND | -18.72 | % | -3.10 | % | ||||||||
S&P 500 INDEX | -37.00 | % | -8.30 | % | ||||||||
HFRX GLOBAL HEDGE FUND INDEX | -23.10 | % | -3.74 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the HFRX Global Hedge Fund Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
iShares S&P GSCI Commodity Indexed Trust | 5.0 | % | ||
iShares MSCI Emerging Markets Index Fund | 1.5 | % | ||
Sovereign Bancorp, Inc. | 1.1 | % | ||
Embarq Corp. | 1.1 | % | ||
NDS Group PLC — SP ADR | 1.0 | % | ||
Genentech, Inc. | 0.9 | % | ||
Datascope Corp. | 0.9 | % | ||
Wachovia Corp. | 0.9 | % | ||
Nationwide Financial Services, Inc. | 0.9 | % | ||
Constellation Energy Group, Inc. | 0.9 | % | ||
Top Ten Total | 14.2 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ALTERNATIVE STRATEGIES
ALLOCATION FUND
ALLOCATION FUND
OBJECTIVE: Seeks to deliver a return that has a low correlation to the returns of traditional stock and bond asset classes, as well as provide capital appreciation.
Inception: May 1, 2008
Rydex Alternative Strategies Allocation Fund returned -18.55% with an observed correlation with the market of 60.00%. 2008 was a difficult year with the stock market going through a turbulence unseen in the past several decades. It is not uncommon to observe high correlations among assets when the financial markets have strong moves in either direction. Unfortunately, with the negative returns being so prevalent, the Fund did not provide the uncorrelated diversification that was desired, but it did benefit the shareholders with higher returns than the market, although still negative.
In particular, the Rydex Variable Trust—Commodities Strategy Fund helped during the first half of the year and the Rydex Managed Futures Strategy Fund—Class H had the best return over the course of the year. Another measure that is important is the observed correlation with the market. Clients that included the Fund with a traditional allocation would likely benefit from its addition to their portfolio.
Cumulative Fund Performance
May 1, 2008 – December 31, 2008
May 1, 2008 – December 31, 2008
The Fund’s collection of the alternative strategies and asset classes is broader than the traditional list of just real estate and commodities. Currently, we are researching other strategies to broaden the list even further.
TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
INCEPTION | ||||||||||||
(05/01/08) | ||||||||||||
ALTERNATIVE STRATEGIES ALLOCATION FUND | -18.55 | % | ||||||||||
S&P 500 INDEX | -34.79 | % | ||||||||||
U.S. TREASURY BELLWETHERS: 3 MONTH INDEX | 1.14 | % | ||||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the U.S. Treasury Bellwethers: 3 Month Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Holdings (% of Total Net Assets) | ||||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 48.9 | % | ||
PowerShares DB G10 Currency Harvest Fund | 12.5 | % | ||
Rydex Variable Trust — Commodities Strategy Fund | 10.7 | % | ||
Rydex Variable Trust — Absolute Return Strategies Fund | 9.6 | % | ||
Rydex Variable Trust — Real Estate Fund | 7.1 | % | ||
Grand Total | 88.8 | % | ||
“Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9 |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
COMMODITIES STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that correlate to the performance of a benchmark for commodities. The Fund’s current benchmark is the S&P Goldman Sachs Commodity Total Return Index (GSCI™”).
Inception: September 30, 2005
For the one-year period ending December 31, 2008, Rydex Commodities Strategy Fund returned -49.02% as opposed to its benchmark, the S&P GSCI, which ended the year down 46.50%. Commodities continued their rally for the first half of 2008 with oil peaking at a price of just over $145/barrel in the beginning of July. U.S. demand for oil subsided as the high price of gasoline led Americans to drive less. Reduced economic activity around the world also weighed heavily on oil prices for the second half of the year. Oil prices fell to less than $34.00 in December, a price not seen since the beginning of 2004, then rallied by year-end to close at $44.60. This was largely due to Israel’s offensive into Gaza.
Reduced housing construction subsequently lowered the demand for copper. Agricultural and livestock prices were also down. Gold provided a positive return for the year, as investors moved into the precious metal to hedge against the long-term
Cumulative Fund Performance
September 30, 2005 – December 31, 2008
September 30, 2005 – December 31, 2008
inflationary pressures of unprecedented global monetary and fiscal stimulus. Cocoa and gold were the only two commodities that provided positive returns for the year. Their worst performing counterparts were lead, unleaded gasoline, nickel and crude oil.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (09/30/05) | |||||||||||
COMMODITIES STRATEGY FUND | -49.02 | % | -19.88 | % | ||||||||
S&P 500 INDEX | -37.00 | % | -7.14 | % | ||||||||
S&P GSCI TOTAL RETURN INDEX | -46.50 | % | -17.52 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P GSCI Total Return Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in exchange traded funds and in derivative instruments such as structured notes, futures contracts, and options on index futures.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
HEDGED EQUITY FUND
OBJECTIVE: Seeks to provide capital appreciation consistent with the return and risk characteristics of the long/short hedge fund universe. The secondary objective is to achieve these returns with low correlation to and less volatility than the equity indices.
Inception: November 29, 2005
Hedge funds experienced their worst year on record in 2008. Long/Short managers (as measured by the HFRX Equity Hedge Index) lost 25.72% on average during the one-year period. By comparison, the Hedged Equity Fund returned -23.84%. All long/short investment styles—growth, value, and momentum—performed poorly during the period due to their equity exposure. The Fund’s long/short value style exposure helped mitigate overall losses as value strategies tended to outperform during the bear market, however, volatility selling strategies—via covered call writing—harmed Fund performance as market implied volatility spiked to unprecedented levels.
Cumulative Fund Performance
November 29, 2005 – December 31, 2008
November 29, 2005 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (11/29/05) | |||||||||||
HEDGED EQUITY FUND | -23.84 | % | -4.84 | % | ||||||||
S&P 500 INDEX | -37.00 | % | -8.30 | % | ||||||||
HFRX EQUITY HEDGE INDEX | -25.72 | % | -5.01 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the HFRX Equity Hedge Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Long Holdings (% of Total Net Assets) | ||||
iShares MSCI Emerging Markets Index Fund | 4.0 | % | ||
Liberty All Star Equity Fund | 0.5 | % | ||
Eaton Vance Tax-Managed Buy-Write Income Fund | 0.5 | % | ||
Eaton Vance Tax-Managed Buy-Write Opportunities Fund | 0.5 | % | ||
First Trust Enhanced Equity Income Fund, Inc. | 0.5 | % | ||
Nuveen Equity Premium and Growth Fund | 0.5 | % | ||
Nuveen Core Equity Alpha Fund | 0.5 | % | ||
Nuveen Equity Premium Opportunity Fund | 0.5 | % | ||
Vanguard Emerging Markets ETF | 0.4 | % | ||
Pepco Holdings, Inc. | 0.3 | % | ||
Top Ten Total | 8.2 | % | ||
“Ten Largest Long Holdings” exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11 |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
INTERNATIONAL ROTATION FUND
OBJECTIVE: Seeks long-term capital appreciation.
Inception: March 27, 2008
2008 was a very poor year for World Equity markets due to the Credit Crunch and resulting fears of a World economic recession. The MSCI World Ex USA Index (Net Dividends Reinvested) returned -39.60% in local currency terms for the period. This was slightly worse than the return for the MSCI USA Index which returned -37.60%. However, due to the recovery in the U.S. Dollar in the latter part of the year, the return from the MSCI World Ex USA Index in U.S. Dollar terms, which is the official benchmark, was lower at -38.26%. Being fully invested, the Fund suffered from the significant falls in equity markets. During the period, the provisional return for the Fund was -31.20% in U.S. Dollar terms. This is slightly behind the S&P 500® Index and significantly ahead of the benchmark return of -38.26%, although this is of little consolation for investors.Throughout the period, the Fund has been invested in a selection of international equity markets which have displayed attractive levels and behavior of “Intrinsic Value” compared to the overall World Equity market. Intrinsic Value is a measure of the income generation that investors could potentially receive from an investment, which is fundamental to the justification for investment.
The Fund has had exposure to a variety of countries such as Belgium, Italy and New Zealand early in the year. Canada was
Cumulative Fund Performance
March 27, 2008 – December 31, 2008
March 27, 2008 – December 31, 2008
also an important holding for much of the period until it was reduced in the Fall as the Fund rotated into other markets such as UK, Switzerland, Japan, Hong Kong and Sweden.
“Intrinsic Value” measurements also identified that the U.S. Dollar was cheap and attractive, so in the latter part of the year, the Fund had significant currency hedges back into the U.S. Dollar in order to protect investors from expected weakness in the currencies of the underlying investments. This proved to be advantageous to the Fund given the weakness of many currencies against the U.S. Dollar.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
INCEPTION | ||||||||||||
(03/27/08) | ||||||||||||
INTERNATIONAL ROTATION FUND | -31.20 | % | ||||||||||
S&P 500 INDEX | -30.58 | % | ||||||||||
MSCI WORLD Ex USA INDEX | -38.26 | % | ||||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the MSCI World Ex USA Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in exchange traded funds and in derivative instruments such as structured notes, futures contracts, and options on index futures.
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
MANAGED FUTURES STRATEGY FUND
OBJECTIVE: Seeks to provide investment returns that match the performance of a benchmark for measuring trends in the commodity and financial futures markets. The Fund’s current benchmark is the Standard & Poor’s Diversified Trends Indicator® (“S&P DTI”).
Inception: November 7, 2008
The S&P DTI was up 8.29% for 2008. The S&P DTI’s ability to go long and short (with the exception of energy, which can only have a long or neutral stance) was the key driver in the Indicator’s ability to produce positive returns for the year. The S&P DTI was long on the energy sector up until the August rebalance and then switched to a neutral position for the rest of the year. Most of the other commodities positions were long for the first half of the year, as well, before switching to short positions towards the end of the year.
Currency positions were generally long relative to the U.S. dollar in the first half of the year before switching to short positions in the latter half of 2008. The Japanese yen was the exception as it was long for the last three months of the year. Interest rate futures were mixed throughout the year before turning decidedly positive at the end of the year.
Since the Fund’s inception date of November 7, 2008, the S&P DTI was down 3.83%. The Japanese Yen was the only currency future with a long position. The two interest rate
Cumulative Fund Performance
November 7, 2008 – December 31, 2008
November 7, 2008 – December 31, 2008
futures (Treasury Bond and 10-Year Note) were initially short but moved to a long position at the December rebalance. The Energy sector has been in a neutral position since the Fund’s inception and other commodities sectors have been short.
Copper and the Japanese yen positions provided the most returns for the period. The Euro, Treasury Bond, 10-Year Note and Precious Metals futures had the highest negative returns for the period. The Rydex Managed Futures Strategy Fund returned - -3.60% since the Fund’s inception date.
TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
INCEPTION | ||||||||||||
(11/07/08) | ||||||||||||
MANAGED FUTURES STRATEGY FUND | -3.60 | % | ||||||||||
S&P DIVERSIFIED TRENDS INDICATOR | -3.83 | % | ||||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P Diversified Trends Indicator is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in exchange traded funds and in derivative instruments such as structured notes, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13 |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
REAL ESTATE FUND
OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the real estate industry, including real estate investment trusts (“REITs”).
Inception: October 1, 2001
Rydex Real Estate Fund returned -41.64% for the one-year period ending December 31, 2008. REITs (down 42.10%) and real estate management companies (down 61.00%) continued to suffer through another tough year as the credit crisis worsened. Despite the downturn in the commercial real estate industry, there were still bright spots: the Fund’s best-performing holding was PS Business Parks, Inc., up 17.10%. On the flip side, the worst-performing stock was General Growth Properties Inc., which lost 96.70% of its value.
Cumulative Fund Performance
October 1, 2001 – December 31, 2008
October 1, 2001 – December 31, 2008
† | Data points for the line graph do not reflect the reinvestment of dividends on securities in the index. |
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | FIVE | INCEPTION | ||||||||||
YEAR | YEAR | (10/01/01) | ||||||||||
REAL ESTATE FUND | -41.64 | % | -3.05 | % | 1.93 | % | ||||||
S&P 500 INDEX | -37.00 | % | -2.19 | % | -0.06 | % | ||||||
S&P REIT COMPOSITE INDEX | -41.68 | % | -4.38 | % | 0.30 | % | ||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P REIT Composite Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Long Holdings (% of Total Net Assets) | ||||
Public Storage | 3.5 | % | ||
Annaly Capital Management, Inc. | 3.1 | % | ||
Simon Property Group, Inc. | 2.9 | % | ||
Vornado Realty Trust | 2.7 | % | ||
Equity Residential | 2.5 | % | ||
Brookfield Asset Management, Inc. — Class A | 2.4 | % | ||
HCP, Inc. | 2.3 | % | ||
Plum Creek Timber Co., Inc. (REIT) | 2.1 | % | ||
Boston Properties, Inc. | 2.1 | % | ||
Ventas, Inc. | 1.9 | % | ||
Top Ten Total | 25.5 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
STRENGTHENING DOLLAR 2x
STRATEGY FUND
STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the U.S. Dollar Index®.
Inception: September 30, 2005
The U.S. Dollar Index (“DXY”) was up 6.01% for the one-year period ending December 31, 2008. For the first half of the year, the U.S. dollar continued to slide against other major world currencies, as the Federal Reserve cut interest rates five times from 4.25% to 2.00%. As the U.S. subprime mortgage crisis spread, other central banks around the world joined in the Fed’s efforts to slash interest rates as global economic growth slowed during the second half of the year. By the end of 2008, the Federal Reserve cut interest rates to a range between 0.00% and 0.25%. The flight to quality and safety led investors back to U.S.-denominated assets and helped push the U.S. dollar back up into positive territory against other major world currencies for the year. In 2008, the U.S. dollar strengthened against the British Pound, Canadian Dollar, Swedish Krona and the Euro, but remained weak against the Japanese Yen and Swiss Franc. Rydex Strengthening Dollar 2x
Cumulative Fund Performance
September 30, 2005 – December 31, 2008
September 30, 2005 – December 31, 2008
Strategy Fund returned 5.56% for the year. It achieved a daily correlation of more than 97% to its benchmark of 200% of the daily price movement of the U.S. Dollar Index.
The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (09/30/05) | |||||||||||
STRENGTHENING DOLLAR 2x STRATEGY FUND | 5.56 | % | -4.28 | % | ||||||||
U.S. DOLLAR INDEX | 6.01 | % | -2.91 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as currency index swap agreements, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15 |
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (concluded)
WEAKENING DOLLAR 2x
STRATEGY FUND
STRATEGY FUND
OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse performance of the U.S. Dollar Index.
Inception: September 30, 2005
Rydex Weakening Dollar 2x Strategy Fund returned - -12.24% for the year. It achieved a daily correlation of more than 97% to its benchmark of 200% of the inverse daily price movement of the U.S. Dollar Index. The DXY was up 6.01% in 2008. For the first half of 2008, the U.S. dollar continued to slide against other major world currencies, as the Federal Reserve cut interest rates five times from 4.25% to 2.00%. As the U.S. subprime mortgage crisis spread, other central banks around the world joined in the Fed’s efforts to slash interest rates as global economic growth slowed during the second half of 2008. By the end of 2008, the Federal Reserve cut interest rates to a range between 0.00% and 0.25%. The flight to quality and safety led investors back to U.S.-denominated assets and helped push the U.S. dollar back up into positive territory against other major world currencies for the year. In
Cumulative Fund Performance
September 30, 2005 – December 31, 2008
September 30, 2005 – December 31, 2008
2008, the U.S. dollar strengthened against the British Pound, Canadian Dollar, Swedish Krona and the Euro, but remained weak against the Japanese Yen and Swiss Franc.
The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (09/30/05) | |||||||||||
WEAKENING DOLLAR 2x STRATEGY FUND | -12.24 | % | 5.20 | % | ||||||||
U.S. DOLLAR INDEX | 6.01 | % | -2.91 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
Holdings Diversification (Market Exposure as % of Net Assets)
“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
The Fund invests principally in derivative instruments such as currency index swap agreements, futures contracts, and options on index futures.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS
December 31, 2008
MULTI-CAP CORE EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 92.2% | ||||||||
FINANCIALS 16.6% | ||||||||
JPMorgan Chase & Co. | 540 | $ | 17,027 | |||||
Wells Fargo & Co. | 490 | 14,445 | ||||||
Bank of America Corp. | 730 | 10,278 | ||||||
Senior Housing Properties Trust | 450 | 8,064 | ||||||
Hudson City Bancorp, Inc. | 460 | 7,342 | ||||||
Unum Group | 380 | 7,068 | ||||||
AFLAC, Inc. | 150 | 6,876 | ||||||
Health Care REIT, Inc. | 160 | 6,752 | ||||||
Omega Healthcare Investors, Inc. | 420 | 6,707 | ||||||
Ameriprise Financial, Inc. | 280 | 6,541 | ||||||
Platinum Underwriters Holdings Ltd. | 180 | 6,494 | ||||||
Fifth Third Bancorp | 779 | 6,435 | ||||||
FNB Corp. | 480 | 6,336 | ||||||
IPC Holdings Ltd. | 210 | 6,279 | ||||||
Marshall & Ilsley Corp. | 450 | 6,138 | ||||||
BB&T Corp. | 220 | 6,041 | ||||||
Alexandria Real Estate Equities, Inc. | 100 | 6,034 | ||||||
Reinsurance Group of America, Inc. | 140 | 5,995 | ||||||
Entertainment Properties Trust | 200 | 5,960 | ||||||
MFA Mortgage Investments, Inc. | 999 | 5,884 | ||||||
Axis Capital Holdings Ltd. | 200 | 5,824 | ||||||
Discover Financial Services | 610 | 5,813 | ||||||
Agree Realty Corp. | 320 | 5,802 | ||||||
Kilroy Realty Corp. | 170 | 5,688 | ||||||
Transatlantic Holdings, Inc. | 140 | 5,608 | ||||||
Hanover Insurance Group, Inc. | 130 | 5,586 | ||||||
Prospect Capital Corp. | 460 | 5,506 | ||||||
First Horizon National Corp. | 520 | 5,496 | ||||||
American Financial Group, Inc. | 240 | 5,491 | ||||||
State Auto Financial Corp. | 180 | 5,411 | ||||||
Safety Insurance Group, Inc. | 140 | 5,328 | ||||||
Camden Property Trust | 170 | 5,328 | ||||||
Hercules Technology Growth Capital, Inc. | 670 | 5,306 | ||||||
Dollar Financial Corp.* | 510 | 5,253 | ||||||
Harleysville National Corp. | 360 | 5,198 | ||||||
Cogdell Spencer, Inc. | 550 | 5,148 | ||||||
Capital One Financial Corp. | 160 | 5,102 | ||||||
Assurant, Inc. | 170 | 5,100 | ||||||
Sanders Morris Harris Group Inc. | 829 | 4,966 | ||||||
Oriental Financial Group | 749 | 4,531 | ||||||
Huntington Bancshares, Inc. | 590 | 4,519 | ||||||
Associated Estates Realty Corp. | 490 | 4,474 | ||||||
Citigroup, Inc. | 660 | 4,429 | ||||||
Annaly Capital Management, Inc. | 260 | 4,126 | ||||||
Aspen Insurance Holdings Ltd. | 170 | 4,123 | ||||||
Capstead Mortgage Corp. | 350 | 3,770 | ||||||
Chubb Corp. | 70 | 3,570 | ||||||
Peoples Bancorp, Inc. | 180 | 3,443 | ||||||
Wachovia Corp. | 610 | 3,379 | ||||||
Legg Mason, Inc. | 150 | 3,287 | ||||||
WesBanco, Inc. | 120 | 3,265 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Post Properties, Inc. | 190 | $ | 3,135 | |||||
Unitrin, Inc. | 180 | 2,869 | ||||||
International Assets Holding Corp.* | 320 | 2,746 | ||||||
Weingarten Realty Investors | 130 | 2,690 | ||||||
PS Business Parks, Inc. | 60 | 2,680 | ||||||
World Acceptance Corp.* | 130 | 2,569 | ||||||
Citizens & Northern Corp. | 130 | 2,568 | ||||||
CNA Surety Corp.* | 130 | 2,496 | ||||||
PNC Financial Services Group, Inc. | 50 | 2,450 | ||||||
Fidelity National Financial, Inc. — Class A | 130 | 2,308 | ||||||
Extra Space Storage, Inc. | 220 | 2,270 | ||||||
Santander BanCorp | 180 | 2,248 | ||||||
Assured Guaranty Ltd. | 190 | 2,166 | ||||||
MetLife, Inc. | 60 | 2,092 | ||||||
CME Group, Inc. | 10 | 2,081 | ||||||
NYSE Euronext | 70 | 1,917 | ||||||
East-West Bancorp, Inc. | 120 | 1,916 | ||||||
MGIC Investment Corp. | 460 | 1,601 | ||||||
Simon Property Group, Inc. | 30 | 1,594 | ||||||
Evercore Partners, Inc. — Class A | 120 | 1,499 | ||||||
First Financial Holdings, Inc. | 60 | 1,214 | ||||||
UCBH Holdings, Inc. | 170 | 1,170 | ||||||
Knight Capital Group, Inc. — Class A* | 70 | 1,131 | ||||||
Urstadt Biddle Properties, Inc. | 70 | 1,115 | ||||||
Pinnacle Financial Partners, Inc.* | 30 | 894 | ||||||
U.S. Bancorp | 30 | 750 | ||||||
CNA Financial Corp. | 40 | 658 | ||||||
Cedar Shopping Centers, Inc. | 80 | 566 | ||||||
Anworth Mortgage Asset Corp. | 70 | 450 | ||||||
Franklin Street Properties Corp., Inc. | 10 | 148 | ||||||
E*Trade Financial Corp.* | 120 | 138 | ||||||
American International Group, Inc. | 70 | 110 | ||||||
Total Financials | 356,805 | |||||||
INFORMATION TECHNOLOGY 14.8% | ||||||||
International Business Machines Corp. | 190 | 15,990 | ||||||
Hewlett-Packard Co. | 370 | 13,427 | ||||||
Microsoft Corp. | 540 | 10,498 | ||||||
Apple, Inc.* | 110 | 9,388 | ||||||
Oracle Corp.* | 460 | 8,156 | ||||||
CA, Inc. | 390 | 7,227 | ||||||
Automatic Data Processing, Inc. | 180 | 7,081 | ||||||
Interwoven, Inc.* | 520 | 6,552 | ||||||
Analog Devices, Inc. | 340 | 6,467 | ||||||
Google, Inc. — Class A* | 21 | 6,461 | ||||||
Parametric Technology Corp.* | 490 | 6,198 | ||||||
Linear Technology Corp. | 280 | 6,194 | ||||||
Alliance Data Systems Corp.* | 130 | 6,049 | ||||||
Symantec Corp.* | 440 | 5,949 | ||||||
Corning, Inc. | 620 | 5,909 | ||||||
CACI International, Inc. — Class A* | 130 | 5,862 | ||||||
Plexus Corp.* | 340 | 5,763 | ||||||
Fidelity National Information Services, Inc. | 350 | 5,694 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
MULTI-CAP CORE EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Marvell Technology Group Ltd.* | 839 | $ | 5,596 | |||||
CommScope, Inc.* | 360 | 5,594 | ||||||
PC-Tel, Inc. | 850 | 5,584 | ||||||
Starent Networks Corp.* | 460 | 5,488 | ||||||
Mantech International Corp. — Class A* | 100 | 5,419 | ||||||
Multi-Fineline Electronix, Inc.* | 460 | 5,377 | ||||||
Diebold, Inc. | 190 | 5,337 | ||||||
TeleCommunication Systems, Inc. — Class A* | 620 | 5,326 | ||||||
Jabil Circuit, Inc. | 789 | 5,326 | ||||||
FactSet Research Systems Inc. | 120 | 5,309 | ||||||
Motorola, Inc. | 1,190 | 5,272 | ||||||
Western Digital Corp.* | 460 | 5,267 | ||||||
Heartland Payment Systems, Inc. | 300 | 5,250 | ||||||
Sohu.com, Inc.* | 110 | 5,207 | ||||||
Silicon Laboratories, Inc.* | 210 | 5,204 | ||||||
i2 Technologies, Inc.* | 809 | 5,170 | ||||||
Transmeta Corp.* | 280 | 5,096 | ||||||
Smith Micro Software, Inc.* | 899 | 4,998 | ||||||
Black Box Corp. | 190 | 4,963 | ||||||
Cisco Systems, Inc.* | 300 | 4,890 | ||||||
United Online, Inc. | 800 | 4,856 | ||||||
Intel Corp. | 330 | 4,838 | ||||||
Radisys Corp.* | 849 | 4,695 | ||||||
Take-Two Interactive Software, Inc. | 610 | 4,612 | ||||||
Amphenol Corp. | 190 | 4,556 | ||||||
Ingram Micro, Inc. — Class A* | 330 | 4,419 | ||||||
Juniper Networks, Inc.* | 250 | 4,377 | ||||||
Skyworks Solutions, Inc.* | 749 | 4,149 | ||||||
Accenture Ltd. — Class A | 120 | 3,935 | ||||||
Affiliated Computer Services, Inc. — Class A* | 70 | 3,216 | ||||||
OSI Systems Inc.* | 230 | 3,185 | ||||||
Bel Fuse, Inc. — Class B | 140 | 2,968 | ||||||
Hughes Communications, Inc.* | 170 | 2,710 | ||||||
Akamai Technologies, Inc.* | 170 | 2,565 | ||||||
Netscout Systems, Inc.* | 290 | 2,500 | ||||||
NCR Corp.* | 170 | 2,404 | ||||||
Harris Corp. | 60 | 2,283 | ||||||
NCI, Inc.* | 70 | 2,109 | ||||||
Computer Sciences Corp.* | 50 | 1,757 | ||||||
MEMC Electronic Materials, Inc.* | 120 | 1,714 | ||||||
Intersil Corp. — Class A | 170 | 1,562 | ||||||
InfoSpace, Inc. | 200 | 1,510 | ||||||
VistaPrint Ltd.* | 70 | 1,303 | ||||||
Teletech Holdings, Inc.* | 110 | 919 | ||||||
SYNNEX Corp.* | 70 | 793 | ||||||
JDS Uniphase Corp.* | 110 | 402 | ||||||
Qualcomm, Inc. | 10 | 358 | ||||||
QLogic Corp.* | 10 | 134 | ||||||
Total Information Technology | 319,367 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
HEALTH CARE 13.3% | ||||||||
Abbott Laboratories | 240 | $ | 12,809 | |||||
Johnson & Johnson, Inc. | 190 | 11,368 | ||||||
Bristol-Myers Squibb Co. | 410 | 9,532 | ||||||
Eli Lilly & Co. | 210 | 8,457 | ||||||
Baxter International, Inc. | 150 | 8,038 | ||||||
Myriad Genetics, Inc.* | 110 | 7,289 | ||||||
Becton, Dickinson & Co. | 100 | 6,839 | ||||||
AmerisourceBergen Corp. | 190 | 6,775 | ||||||
Pfizer, Inc. | 380 | 6,730 | ||||||
Medco Health Solutions, Inc.* | 160 | 6,706 | ||||||
Express Scripts, Inc.* | 120 | 6,598 | ||||||
Cardinal Health, Inc. | 180 | 6,205 | ||||||
Biogen Idec, Inc.* | 130 | 6,192 | ||||||
Gilead Sciences, Inc.* | 120 | 6,137 | ||||||
Omnicare, Inc. | 220 | 6,107 | ||||||
Celgene Corp.* | 110 | 6,081 | ||||||
Bio-Rad Laboratories, Inc. — Class A* | 80 | 6,025 | ||||||
Viropharma, Inc.* | 460 | 5,989 | ||||||
Thoratec Corp.* | 180 | 5,848 | ||||||
Techne Corp. | 90 | 5,807 | ||||||
Amedisys, Inc.* | 140 | 5,788 | ||||||
Mylan Laboratories, Inc.* | 580 | 5,736 | ||||||
Gen-Probe, Inc.* | 130 | 5,569 | ||||||
Gentiva Health Services, Inc.* | 190 | 5,559 | ||||||
Greatbatch, Inc.* | 210 | 5,557 | ||||||
Pharmaceutical Product Development, Inc. | 190 | 5,512 | ||||||
Teleflex, Inc. | 110 | 5,511 | ||||||
Perrigo Co. | 170 | 5,493 | ||||||
Emergency Medical Services Corp. — Class A* | 150 | 5,491 | ||||||
Hologic, Inc.* | 410 | 5,359 | ||||||
Emergent Biosolutions, Inc.* | 200 | 5,222 | ||||||
Schering-Plough Corp. | 300 | 5,109 | ||||||
Cardiac Science Corp.* | 680 | 5,100 | ||||||
Computer Programs & Systems, Inc. | 190 | 5,092 | ||||||
Warner Chilcott Ltd.* | 350 | 5,075 | ||||||
Genzyme Corp.* | 70 | 4,646 | ||||||
Cephalon, Inc.* | 60 | 4,622 | ||||||
National Healthcare Corp. | 90 | 4,558 | ||||||
Cubist Pharmaceuticals, Inc.* | 180 | 4,349 | ||||||
Conmed Corp.* | 170 | 4,070 | ||||||
Sun Healthcare Group, Inc.* | 450 | 3,982 | ||||||
Healthspring, Inc.* | 190 | 3,794 | ||||||
Hill-Rom Holdings, Inc. | 230 | 3,786 | ||||||
AmSurg Corp.* | 150 | 3,501 | ||||||
Masimo Corp.* | 110 | 3,281 | ||||||
Albany Molecular Research, Inc.* | 290 | 2,825 | ||||||
PDL BioPharma, Inc. | 440 | 2,719 | ||||||
Sepracor, Inc.* | 240 | 2,635 | ||||||
Stryker Corp. | 60 | 2,397 | ||||||
Luminex Corp.* | 90 | 1,922 | ||||||
eResearch Technology, Inc.* | 200 | 1,326 | ||||||
Merck & Company, Inc. | 40 | 1,216 |
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
MULTI-CAP CORE EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Amgen, Inc.* | 20 | $ | 1,155 | |||||
Questcor Pharmaceuticals, Inc.* | 120 | 1,117 | ||||||
Zoll Medical Corp.* | 50 | 944 | ||||||
Quest Diagnostics, Inc. | 10 | 519 | ||||||
Cerner Corp.* | 10 | 385 | ||||||
Par Pharmaceutical Companies, Inc.* | 20 | 268 | ||||||
ArthroCare Corp.* | 30 | 143 | ||||||
Total Health Care | 286,865 | |||||||
INDUSTRIALS 11.6% | ||||||||
General Electric Co. | 700 | 11,340 | ||||||
Emerson Electric Co. | 210 | 7,688 | ||||||
Lockheed Martin Corp. | 90 | 7,567 | ||||||
ITT Corporation | 160 | 7,358 | ||||||
Parker Hannifin Corp. | 170 | 7,232 | ||||||
Union Pacific Corp. | 150 | 7,170 | ||||||
Raytheon Co. | 140 | 7,146 | ||||||
Burlington Northern Santa Fe Corp. | 90 | 6,814 | ||||||
Northrop Grumman Corp. | 150 | 6,756 | ||||||
Fluor Corp. | 150 | 6,730 | ||||||
Norfolk Southern Corp. | 140 | 6,587 | ||||||
Regal-Beloit Corp. | 170 | 6,458 | ||||||
Hawaiian Holdings, Inc.* | 999 | 6,374 | ||||||
SkyWest, Inc. | 340 | 6,324 | ||||||
EMCOR Group, Inc.* | 280 | 6,280 | ||||||
URS Corp.* | 150 | 6,116 | ||||||
LMI Aerospace, Inc.* | 530 | 6,026 | ||||||
Timken Co. | 300 | 5,889 | ||||||
Continental Airlines, Inc. — Class B* | 320 | 5,779 | ||||||
ABM Industries, Inc. | 300 | 5,715 | ||||||
Triumph Group, Inc. | 130 | 5,520 | ||||||
Kirby Corp.* | 200 | 5,472 | ||||||
AGCO Corp.* | 230 | 5,426 | ||||||
Federal Signal Corp. | 660 | 5,419 | ||||||
SPX Corp. | 130 | 5,272 | ||||||
Knoll, Inc. | 580 | 5,232 | ||||||
Circor International, Inc. | 190 | 5,225 | ||||||
VSE Corp. | 130 | 5,100 | ||||||
Ennis Inc. | 420 | 5,086 | ||||||
DXP Enterprises, Inc.* | 340 | 4,967 | ||||||
Multi-Color Corp. | 300 | 4,746 | ||||||
CSX Corp. | 140 | 4,546 | ||||||
Dover Corp. | 130 | 4,280 | ||||||
MSC Industrial Direct Co. | 110 | 4,051 | ||||||
Republic Airways Holdings, Inc.* | 320 | 3,414 | ||||||
CH Robinson Worldwide, Inc. | 60 | 3,302 | ||||||
Manitowoc Co., Inc. | 380 | 3,291 | ||||||
Valmont Industries, Inc. | 50 | 3,068 | ||||||
Encore Wire Corp. | 160 | 3,034 | ||||||
Textron, Inc. | 200 | 2,774 | ||||||
GrafTech International Ltd.* | 330 | 2,746 | ||||||
Goodrich Corp. | 70 | 2,591 | ||||||
Comfort Systems USA, Inc. | 230 | 2,452 | ||||||
Flowserve Corp. | 40 | 2,060 | ||||||
Titan International, Inc. | 200 | 1,650 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Joy Global, Inc. | 70 | $ | 1,602 | |||||
Eaton Corp. | 30 | 1,491 | ||||||
AMETEK, Inc. | 40 | 1,208 | ||||||
School Specialty, Inc.* | 60 | 1,147 | ||||||
Sterling Construction Company, Inc.* | 60 | 1,112 | ||||||
Chart Industries, Inc.* | 100 | 1,063 | ||||||
Shaw Group, Inc.* | 50 | 1,024 | ||||||
Tyco International Ltd. | 30 | 648 | ||||||
United Technologies Corp. | 10 | 536 | ||||||
Energy Conversion Devices, Inc.* | 20 | 504 | ||||||
EnerSys* | 40 | 440 | ||||||
TBS International Ltd. — Class A* | 40 | 401 | ||||||
Franklin Electric Company, Inc. | 10 | 281 | ||||||
Genco Shipping & Trading Ltd. | 10 | 148 | ||||||
Total Industrials | 249,678 | |||||||
CONSUMER DISCRETIONARY 9.2% | ||||||||
Walt Disney Co. | 400 | 9,076 | ||||||
Time Warner, Inc. | 829 | 8,340 | ||||||
Comcast Corp. — Class A | 430 | 7,258 | ||||||
H&R Block, Inc. | 310 | 7,043 | ||||||
Darden Restaurants, Inc. | 240 | 6,763 | ||||||
Jo-Ann Stores, Inc.* | 410 | 6,351 | ||||||
McDonald’s Corp. | 100 | 6,219 | ||||||
Nike, Inc. — Class B | 120 | 6,120 | ||||||
Polaris Industries, Inc. | 210 | 6,017 | ||||||
Staples, Inc. | 330 | 5,914 | ||||||
Carnival Corp. | 240 | 5,837 | ||||||
Tractor Supply Co.* | 160 | 5,782 | ||||||
DeVry, Inc. | 100 | 5,741 | ||||||
Family Dollar Stores, Inc. | 220 | 5,735 | ||||||
Petsmart, Inc. | 310 | 5,720 | ||||||
Ross Stores, Inc. | 190 | 5,649 | ||||||
Polo Ralph Lauren Corp. | 120 | 5,449 | ||||||
Omnicom Group, Inc. | 190 | 5,115 | ||||||
Unifirst Corp. | 170 | 5,047 | ||||||
P.F. Chang’s China Bistro, Inc.* | 240 | 5,026 | ||||||
Core-Mark Holding Company, Inc.* | 230 | 4,950 | ||||||
Johnson Controls, Inc. | 270 | 4,903 | ||||||
Foot Locker, Inc. | 650 | 4,771 | ||||||
DineEquity, Inc. | 400 | 4,624 | ||||||
Genuine Parts Co. | 120 | 4,543 | ||||||
Fred’s, Inc. | 420 | 4,519 | ||||||
Fuqi International, Inc.* | 690 | 4,319 | ||||||
TJX Companies, Inc. | 170 | 3,497 | ||||||
Amazon.com, Inc.* | 60 | 3,077 | ||||||
Genesco, Inc.* | 170 | 2,876 | ||||||
True Religion Apparel, Inc.* | 230 | 2,861 | ||||||
Kenneth Cole Productions, Inc. — Class A | 390 | 2,761 | ||||||
Harman International Industries, Inc. | 160 | 2,677 | ||||||
Pulte Homes, Inc. | 230 | 2,514 | ||||||
Collective Brands, Inc.* | 190 | 2,227 | ||||||
DIRECTV Group, Inc.* | 90 | 2,062 | ||||||
Gaylord Entertainment Co.* | 180 | 1,951 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
MULTI-CAP CORE EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Tupperware Brands Corp. | 80 | $ | 1,816 | |||||
Life Time Fitness, Inc.* | 140 | 1,813 | ||||||
Citi Trends, Inc.* | 120 | 1,766 | ||||||
Apollo Group, Inc. — Class A* | 20 | 1,532 | ||||||
Exide Technologies* | 240 | 1,270 | ||||||
Whirlpool Corp. | 30 | 1,241 | ||||||
Brookfield Homes Corp. | 220 | 950 | ||||||
Best Buy Company, Inc. | 30 | 843 | ||||||
Finish Line, Inc. — Class A | 140 | 784 | ||||||
Stage Stores, Inc. | 90 | 743 | ||||||
priceline.com, Inc.* | 10 | 737 | ||||||
Fuel Systems Solutions, Inc.* | 20 | 655 | ||||||
Group 1 Automotive, Inc. | 60 | 646 | ||||||
WMS Industries, Inc.* | 10 | 269 | ||||||
Wolverine World Wide, Inc. | 10 | 210 | ||||||
Total Consumer Discretionary | 198,609 | |||||||
ENERGY 8.4% | ||||||||
Exxon Mobil Corp. | 451 | 36,003 | ||||||
Chevron Corp. | 210 | 15,534 | ||||||
Murphy Oil Corp. | 170 | 7,539 | ||||||
Noble Corp. | 290 | 6,406 | ||||||
Transocean Ltd.* | 130 | 6,142 | ||||||
Plains Exploration & Production Co.* | 260 | 6,042 | ||||||
World Fuel Services Corp. | 160 | 5,920 | ||||||
Diamond Offshore Drilling, Inc. | 100 | 5,894 | ||||||
Nordic American Tanker Shipping | 170 | 5,738 | ||||||
Overseas Shipholding Group, Inc. | 130 | 5,474 | ||||||
Frontline Ltd. | 180 | 5,330 | ||||||
Peabody Energy Corp. | 230 | 5,233 | ||||||
Williams Companies, Inc. | 340 | 4,923 | ||||||
Delek US Holdings, Inc. | 919 | 4,862 | ||||||
Hornbeck Offshore Services, Inc.* | 270 | 4,412 | ||||||
Southwestern Energy Co.* | 150 | 4,346 | ||||||
Valero Energy Corp. | 200 | 4,328 | ||||||
Alpha Natural Resources, Inc.* | 240 | 3,886 | ||||||
Massey Energy Co. | 280 | 3,861 | ||||||
Arch Coal, Inc. | 230 | 3,747 | ||||||
ConocoPhillips | 70 | 3,626 | ||||||
Chesapeake Energy Corp. | 220 | 3,557 | ||||||
Schlumberger Ltd. | 80 | 3,386 | ||||||
Whiting Petroleum Corp.* | 100 | 3,346 | ||||||
McMoRan Exploration Co.* | 340 | 3,332 | ||||||
Mariner Energy, Inc.* | 300 | 3,060 | ||||||
Pioneer Drilling Co.* | 470 | 2,618 | ||||||
ENSCO International, Inc. | 80 | 2,271 | ||||||
Oil States International, Inc.* | 110 | 2,056 | ||||||
Willbros Group, Inc.* | 230 | 1,948 | ||||||
Cimarex Energy Co. | 70 | 1,875 | ||||||
Tesoro Corp. | 120 | 1,580 | ||||||
Swift Energy Co.* | 90 | 1,513 | ||||||
Encore Acquisition Co.* | 20 | 510 | ||||||
Superior Well Services, Inc.* | 10 | 100 | ||||||
Total Energy | 180,398 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
CONSUMER STAPLES 6.9% | ||||||||
Procter & Gamble Co. | 300 | $ | 18,546 | |||||
Wal-Mart Stores, Inc. | 190 | 10,652 | ||||||
Altria Group, Inc. | 490 | 7,379 | ||||||
Bunge Ltd. | 140 | 7,248 | ||||||
Costco Wholesale Corp. | 130 | 6,825 | ||||||
Archer-Daniels-Midland Co. | 230 | 6,631 | ||||||
Kroger Co. | 240 | 6,338 | ||||||
TreeHouse Foods, Inc.* | 220 | 5,993 | ||||||
Nash Finch Co. | 130 | 5,836 | ||||||
Chiquita Brands International, Inc.* | 390 | 5,764 | ||||||
Central Garden and Pet Co. — Class A* | 960 | 5,664 | ||||||
Pantry, Inc.* | 260 | 5,577 | ||||||
Cal-Maine Foods, Inc. | 190 | 5,453 | ||||||
Coca-Cola Co. | 120 | 5,432 | ||||||
Zhongpin, Inc.* | 450 | 5,400 | ||||||
PepsiAmericas, Inc. | 260 | 5,294 | ||||||
Philip Morris International, Inc. | 120 | 5,221 | ||||||
Calavo Growers, Inc. | 440 | 5,060 | ||||||
Tyson Foods, Inc. — Class A | 560 | 4,906 | ||||||
Susser Holdings Corp.* | 330 | 4,386 | ||||||
PepsiCo, Inc. | 70 | 3,834 | ||||||
Coca-Cola Bottling Company Consolidated | 80 | 3,677 | ||||||
Village Super Market | 60 | 3,443 | ||||||
Sysco Corp. | 110 | 2,523 | ||||||
China Sky One Medical, Inc.* | 60 | 959 | ||||||
Nu Skin Enterprises, Inc. | 60 | 626 | ||||||
Spectrum Brands, Inc.* | 190 | 17 | ||||||
Total Consumer Staples | 148,684 | |||||||
UTILITIES 5.3% | ||||||||
NRG Energy, Inc.* | 299 | 6,976 | ||||||
DTE Energy Co. | 189 | 6,742 | ||||||
Entergy Corp. | 80 | 6,650 | ||||||
Northeast Utilities | 260 | 6,255 | ||||||
CenterPoint Energy, Inc. | 490 | 6,184 | ||||||
CH Energy Group, Inc. | 120 | 6,167 | ||||||
Reliant Energy, Inc.* | 1,019 | 5,890 | ||||||
Unisource Energy Corp. | 200 | 5,872 | ||||||
NorthWestern Corp. | 250 | 5,867 | ||||||
Oneok, Inc. | 200 | 5,824 | ||||||
Central Vermont Public Service Corp. | 240 | 5,726 | ||||||
OGE Energy Corp. | 220 | 5,671 | ||||||
UGI Corp. | 230 | 5,617 | ||||||
Great Plains Energy, Inc. | 290 | 5,606 | ||||||
Atmos Energy Corp. | 230 | 5,451 | ||||||
Pepco Holdings, Inc. | 300 | 5,328 | ||||||
Vectren Corp. | 210 | 5,252 | ||||||
CMS Energy Corp. | 490 | 4,954 | ||||||
Alliant Energy Corp. | 140 | 4,085 | ||||||
Questar Corp. | 40 | 1,308 | ||||||
AES Corp.* | 120 | 989 | ||||||
NV Energy, Inc. | 99 | 979 |
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
MULTI-CAP CORE EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Avista Corp. | 50 | $ | 969 | |||||
PNM Resources, Inc. | 50 | 504 | ||||||
Dynegy Inc.* | 69 | 138 | ||||||
Total Utilities | 115,004 | |||||||
MATERIALS 3.9% | ||||||||
Innophos Holdings, Inc. | 350 | 6,933 | ||||||
International Paper Co. | 510 | 6,018 | ||||||
Bway Holding Co.* | 740 | 5,890 | ||||||
Celanese Corp. | 440 | 5,469 | ||||||
A. Schulman, Inc. | 320 | 5,440 | ||||||
Cabot Corp. | 350 | 5,355 | ||||||
Glatfelter | 570 | 5,301 | ||||||
Compass Minerals International, Inc. | 90 | 5,279 | ||||||
Stepan Co. | 110 | 5,169 | ||||||
Schweitzer-Mauduit International, Inc. | 230 | 4,605 | ||||||
Greif, Inc. — Class A | 130 | 4,346 | ||||||
United States Steel Corp. | 90 | 3,348 | ||||||
The Mosaic Co. | 90 | 3,114 | ||||||
Steel Dynamics, Inc. | 240 | 2,683 | ||||||
Ashland, Inc. | 230 | 2,417 | ||||||
Koppers Holdings, Inc. | 90 | 1,946 | ||||||
Eastman Chemical Co. | 60 | 1,903 | ||||||
OM Group, Inc.* | 90 | 1,900 | ||||||
CF Industries Holdings, Inc. | 30 | 1,475 | ||||||
AK Steel Holding Corp. | 140 | 1,305 | ||||||
Huntsman Corp. | 320 | 1,101 | ||||||
Terra Industries, Inc. | 50 | 834 | ||||||
Owens-Illinois, Inc.* | 30 | 820 | ||||||
Cliffs Natural Resources Inc | 30 | 768 | ||||||
Intrepid Potash, Inc.* | 10 | 208 | ||||||
Total Materials | 83,627 | |||||||
TELECOMMUNICATION SERVICES 2.2% | ||||||||
AT&T, Inc. | 480 | 13,680 | ||||||
Verizon Communications, Inc. | 360 | 12,204 | ||||||
Embarq Corp. | 190 | 6,832 | ||||||
Syniverse Holdings, Inc.* | 550 | 6,567 | ||||||
Shenandoah Telecommunications Co. | 200 | 5,610 | ||||||
NII Holdings, Inc. — Class B* | 160 | 2,909 | ||||||
Total Telecommunication Services | 47,802 | |||||||
Total Common Stocks | ||||||||
(Cost $2,032,366) | 1,986,839 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENTS† 6.5% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 36,127 | $ | 36,127 | ||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 36,127 | 36,127 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 36,127 | 36,127 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 32,607 | 32,607 | ||||||
Total Repurchase Agreements (Cost $140,988) | 140,988 | |||||||
Total Investments 98.7% (Cost $2,173,354) | $ | 2,127,827 | ||||||
Other Assets in Excess of Liabilities – 1.3% | $ | 28,425 | ||||||
Net Assets – 100.0% | $ | 2,156,252 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $53,430) | 1 | $ | 2,345 | |||||
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $49,300) | 1 | 1,038 | ||||||
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $45,025) | 1 | 758 | ||||||
(Total Aggregate Market Value of Contracts $147,755) | $ | 4,141 | ||||||
* | Non-Income Producing Security. | |
† | Repurchase Agreements — See Note 6. | |
REIT — Real Estate Investment Trust. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21 |
SCHEDULE OF INVESTMENTS
December 31, 2008
SECTOR ROTATION FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 97.9% | ||||||||
CONSUMER STAPLES 25.6% | ||||||||
Procter & Gamble Co. | 44,900 | $ | 2,775,718 | |||||
Wal-Mart Stores, Inc. | 34,000 | 1,906,040 | ||||||
Unilever NV | 48,916 | 1,200,888 | ||||||
Colgate-Palmolive Co. | 17,300 | 1,185,742 | ||||||
Kraft Foods, Inc. | 43,617 | 1,171,117 | ||||||
Kimberly-Clark Corp. | 18,052 | 952,063 | ||||||
CVS Caremark Corp. | 27,000 | 775,980 | ||||||
Clorox Co. | 10,731 | 596,214 | ||||||
General Mills, Inc. | 9,800 | 595,350 | ||||||
Walgreen Co. | 23,300 | 574,811 | ||||||
Costco Wholesale Corp. | 10,800 | 567,000 | ||||||
Kroger Co. | 20,400 | 538,764 | ||||||
Archer-Daniels-Midland Co. | 18,600 | 536,238 | ||||||
Kellogg Co. | 11,200 | 491,120 | ||||||
Safeway, Inc. | 17,700 | 420,729 | ||||||
Sysco Corp. | 17,900 | 410,626 | ||||||
Church & Dwight Company, Inc. | 7,061 | 396,263 | ||||||
Cadbury PLC — SP ADR | 9,914 | 353,632 | ||||||
H.J. Heinz Co. | 9,100 | 342,160 | ||||||
Energizer Holdings, Inc.* | 5,900 | 319,426 | ||||||
Campbell Soup Co. | 10,634 | 319,126 | ||||||
ConAgra Foods, Inc. | 13,100 | 216,150 | ||||||
Sara Lee Corp. | 20,500 | 200,695 | ||||||
Bunge Ltd. | 3,700 | 191,549 | ||||||
SUPERVALU, INC. | 12,600 | 183,960 | ||||||
BJ’s Wholesale Club, Inc.* | 5,200 | 178,152 | ||||||
Hershey Co. | 4,900 | 170,226 | ||||||
Ruddick Corp. | 5,100 | 141,015 | ||||||
WD-40 Co. | 4,831 | 136,669 | ||||||
Winn-Dixie Stores, Inc.* | 8,000 | 128,800 | ||||||
Hormel Foods Corp. | 4,057 | 126,092 | ||||||
Casey’s General Stores, Inc. | 5,500 | 125,235 | ||||||
McCormick & Company, Inc. | 3,600 | 114,696 | ||||||
Whole Foods Market, Inc. | 11,000 | 103,840 | ||||||
United Natural Foods, Inc.* | 5,700 | 101,574 | ||||||
Total Consumer Staples | 18,547,660 | |||||||
HEALTH CARE 24.2% | ||||||||
Genentech, Inc.* | 26,600 | 2,205,406 | ||||||
Amgen, Inc.* | 31,300 | 1,807,575 | ||||||
Gilead Sciences, Inc.* | 32,600 | 1,667,164 | ||||||
Celgene Corp.* | 20,400 | 1,127,712 | ||||||
Genzyme Corp.* | 14,500 | 962,365 | ||||||
Biogen Idec, Inc.* | 18,600 | 885,918 | ||||||
Johnson & Johnson, Inc. | 10,600 | 634,198 | ||||||
Novartis AG — SP ADR | 11,400 | 567,264 | ||||||
Cephalon, Inc.* | 7,200 | 554,688 | ||||||
Pfizer, Inc. | 30,500 | 540,155 | ||||||
Vertex Pharmaceuticals, Inc.* | 16,900 | 513,422 | ||||||
GlaxoSmithKline PLC — SP ADR | 13,000 | 484,510 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Sanofi-Aventis — SP ADR | 14,400 | $ | 463,104 | |||||
Abbott Laboratories | 8,400 | 448,308 | ||||||
Merck & Company, Inc. | 13,500 | 410,400 | ||||||
Myriad Genetics, Inc.* | 6,100 | 404,186 | ||||||
AstraZeneca PLC — SP ADR | 9,300 | 381,579 | ||||||
Alexion Pharmaceuticals, Inc.* | 10,400 | 376,376 | ||||||
OSI Pharmaceuticals, Inc.* | 9,000 | 351,450 | ||||||
Wyeth | 9,300 | 348,843 | ||||||
Onyx Pharmaceuticals, Inc.* | 10,100 | 345,016 | ||||||
Eli Lilly & Co. | 8,500 | 342,295 | ||||||
Bristol-Myers Squibb Co. | 14,300 | 332,475 | ||||||
BioMarin Pharmaceuticals, Inc.* | 17,800 | 316,840 | ||||||
Teva Pharmaceutical Industries Ltd. — SP ADR | 6,700 | 285,219 | ||||||
Schering-Plough Corp. | 15,000 | 255,450 | ||||||
United Therapeutics Corp.* | 3,700 | 231,435 | ||||||
Allergan, Inc. | 4,500 | 181,440 | ||||||
Shire PLC — SP ADR | 3,200 | 143,296 | ||||||
Total Health Care | 17,568,089 | |||||||
UTILITIES 16.0% | ||||||||
Questar Corp. | 22,145 | 723,920 | ||||||
Equitable Resources, Inc. | 19,863 | 666,404 | ||||||
Dominion Resources, Inc. | 17,010 | 609,638 | ||||||
Public Service Enterprise Group, Inc. | 17,994 | 524,885 | ||||||
PG&E Corp. | 13,203 | 511,088 | ||||||
Oneok, Inc. | 16,515 | 480,917 | ||||||
UGI Corp. | 19,306 | 471,453 | ||||||
AGL Resources, Inc. | 14,406 | 451,628 | ||||||
Sempra Energy | 10,145 | 432,481 | ||||||
Piedmont Natural Gas Co. | 13,526 | 428,368 | ||||||
Consolidated Edison, Inc. | 10,976 | 427,296 | ||||||
National Fuel Gas Co. | 13,474 | 422,140 | ||||||
Atmos Energy Corp. | 17,615 | 417,476 | ||||||
Energen Corp. | 13,612 | 399,240 | ||||||
Xcel Energy, Inc. | 21,100 | 391,405 | ||||||
New Jersey Resources Corp. | 9,912 | 390,037 | ||||||
WGL Holdings, Inc. | 11,643 | 380,610 | ||||||
Ameren Corp. | 10,851 | 360,904 | ||||||
DTE Energy Co. | 8,943 | 318,997 | ||||||
Nicor, Inc. | 9,052 | 314,466 | ||||||
Northwest Natural Gas Co. | 6,746 | 298,376 | ||||||
Wisconsin Energy Corp. | 7,010 | 294,280 | ||||||
CenterPoint Energy, Inc. | 22,504 | 284,000 | ||||||
NSTAR | 7,720 | 281,703 | ||||||
SCANA Corp. | 7,819 | 278,356 | ||||||
Laclede Group, Inc. | 5,899 | 276,309 | ||||||
Puget Energy, Inc. | 9,007 | 245,621 | ||||||
Integrys Energy Group, Inc. | 5,645 | 242,622 | ||||||
Alliant Energy Corp. | 8,189 | 238,955 | ||||||
Total Utilities | 11,563,575 | |||||||
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
SECTOR ROTATION FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CONSUMER DISCRETIONARY 15.8% | ||||||||
Apollo Group, Inc. — Class A* | 23,300 | $ | 1,785,246 | |||||
H&R Block, Inc. | 65,899 | 1,497,225 | ||||||
DeVry, Inc. | 17,900 | 1,027,639 | ||||||
ITT Educational Services, Inc.* | 10,500 | 997,290 | ||||||
Strayer Education, Inc. | 4,100 | 879,081 | ||||||
Weight Watchers International, Inc. | 26,500 | 779,630 | ||||||
Career Education Corp.* | 36,099 | 647,616 | ||||||
Corinthian Colleges, Inc.* | 37,100 | 607,327 | ||||||
Service Corporation International | 109,499 | 544,210 | ||||||
Capella Education Co.* | 8,899 | 522,905 | ||||||
Hillenbrand, Inc. | 31,202 | 520,450 | ||||||
Matthews International Corp. — Class A | 14,099 | 517,151 | ||||||
American Public Education, Inc.* | 10,600 | 394,214 | ||||||
Sotheby’s | 42,500 | 377,825 | ||||||
K12 Inc.* | 20,093 | 376,744 | ||||||
Total Consumer Discretionary | 11,474,553 | |||||||
TELECOMMUNICATION SERVICES 8.2% | ||||||||
AT&T, Inc. | 55,100 | 1,570,350 | ||||||
Verizon Communications, Inc. | 35,900 | 1,217,010 | ||||||
Deutsche Telekom AG — SP ADR | 68,400 | 1,046,520 | ||||||
Qwest Communications International, Inc. | 88,200 | 321,048 | ||||||
Embarq Corp. | 7,700 | 276,892 | ||||||
Windstream Corp. | 27,100 | 249,320 | ||||||
Tele Norte Leste Participacoes SA — ADR | 16,200 | 225,504 | ||||||
Frontier Communications Corp. | 22,900 | 200,146 | ||||||
CenturyTel, Inc. | 7,100 | 194,043 | ||||||
tw telecom Inc.* | 16,900 | 143,143 | ||||||
NTELOS Holdings Corp. | 5,000 | 123,300 | ||||||
Level 3 Communications, Inc.* | 158,300 | 110,810 | ||||||
Cbeyond, Inc.* | 5,000 | 79,900 | ||||||
Global Crossing* | 10,000 | 79,400 | ||||||
Iowa Telecommunications Services, Inc. | 5,300 | 75,684 | ||||||
Total Telecommunication Services | 5,913,070 | |||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
INDUSTRIALS 8.1% | ||||||||
Delta Air Lines, Inc.* | 86,684 | $ | 993,399 | |||||
Southwest Airlines Co. | 103,838 | 895,084 | ||||||
AMR Corp.* | 56,211 | 599,771 | ||||||
Continental Airlines, Inc. — Class B* | 27,459 | 495,910 | ||||||
JetBlue Airways Corp.* | 69,649 | 494,508 | ||||||
UAL Corp. | 38,000 | 418,760 | ||||||
SkyWest, Inc. | 19,599 | 364,541 | ||||||
Alaska Air Group, Inc.* | 12,250 | 358,312 | ||||||
Allegiant Travel Co.* | 7,075 | 343,633 | ||||||
Copa Holdings SA | 10,911 | 330,822 | ||||||
US Airways Group, Inc.* | 42,503 | 328,548 | ||||||
AirTran Holdings, Inc.* | 54,971 | 244,071 | ||||||
Total Industrials | 5,867,359 | |||||||
Total Common Stocks (Cost $70,409,983) | 70,934,306 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.3% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 929,453 | 929,453 | |||||
Total Repurchase Agreement (Cost $929,453) | 929,453 | |||||||
Total Investments 99.2% (Cost $71,339,436) | $ | 71,863,759 | ||||||
Other Assets in Excess of Liabilities – 0.8% | $ | 575,020 | ||||||
Net Assets – 100.0% | $ | 72,438,779 |
* | Non-Income Producing Security. | |
† | Repurchase Agreements — See Note 6. | |
ADR — American Depository Receipt. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23 |
SCHEDULE OF INVESTMENTS
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 34.5% | ||||||||
FINANCIALS 9.0% | ||||||||
Sovereign Bancorp, Inc.* | 127,180 | $ | 378,995 | |||||
Wachovia Corp. | 53,130 | 294,340 | ||||||
Nationwide Financial Services, Inc. | 5,600 | 292,376 | ||||||
Merrill Lynch & Co., Inc. | 24,380 | 283,783 | ||||||
National City Corp. | 147,930 | 267,753 | ||||||
Castlepoint Holdings Ltd. | 14,870 | 201,637 | ||||||
Hanover Insurance Group, Inc. | 1,970 | 84,651 | ||||||
Travelers Companies, Inc. | 1,800 | 81,360 | ||||||
Arthur J. Gallagher & Co. | 2,510 | 65,034 | ||||||
Aon Corp. | 1,330 | 60,754 | ||||||
Annaly Capital Management, Inc. | 3,490 | 55,386 | ||||||
Transatlantic Holdings, Inc. | 1,350 | 54,081 | ||||||
MetLife, Inc. | 1,430 | 49,850 | ||||||
JPMorgan Chase & Co. | 1,540 | 48,556 | ||||||
Nationwide Health Properties, Inc. | 1,450 | 41,644 | ||||||
People’s United Financial, Inc. | 2,090 | 37,265 | ||||||
Chubb Corp. | 570 | 29,070 | ||||||
ACE Ltd.§ | 500 | 26,460 | ||||||
Capital One Financial Corp. | 820 | 26,150 | ||||||
Goldman Sachs Group, Inc. | 300 | 25,317 | ||||||
Ameriprise Financial, Inc. | 990 | 23,126 | ||||||
ProLogis | 1,620 | 22,502 | ||||||
Invesco Ltd. | 1,550 | 22,382 | ||||||
Allstate Corp. | 660 | 21,622 | ||||||
HCP, Inc. | 760 | 21,105 | ||||||
Valley National Bancorp | 990 | 20,047 | ||||||
NYSE Euronext | 730 | 19,987 | ||||||
Genpact Ltd.* | 2,430 | 19,975 | ||||||
Axis Capital Holdings Ltd. | 670 | 19,510 | ||||||
Allied World Assurance Company Holdings Ltd | 460 | 18,676 | ||||||
PartnerRe Ltd. | 250 | 17,817 | ||||||
W.R. Berkley Corp. | 540 | 16,740 | ||||||
Waddell & Reed Financial, Inc. — Class A | 910 | 14,069 | ||||||
Charles Schwab Corp. | 850 | 13,744 | ||||||
IntercontinentalExchange, Inc.* | 160 | 13,190 | ||||||
Everest Re Group Ltd. | 170 | 12,944 | ||||||
Jones Lang LaSalle, Inc. | 450 | 12,465 | ||||||
Prudential Financial, Inc. | 400 | 12,104 | ||||||
Cincinnati Financial Corp. | 410 | 11,919 | ||||||
CB Richard Ellis Group, Inc. — Class A* | 2,750 | 11,880 | ||||||
Macerich Co. | 640 | 11,622 | ||||||
Host Hotels & Resorts, Inc. | 1,530 | 11,582 | ||||||
Unum Group | 610 | 11,346 | ||||||
Federated Investors, Inc. — Class B | 570 | 9,667 | ||||||
State Street Corp. | 220 | 8,653 | ||||||
Protective Life Corp. | 580 | 8,323 | ||||||
Comerica, Inc. | 410 | 8,139 | ||||||
AmeriCredit Corp.* | 1,029 | 7,862 | ||||||
Webster Financial Corp. | 540 | 7,441 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Assurant, Inc. | 230 | $ | 6,900 | |||||
American Financial Group, Inc. | 300 | 6,864 | ||||||
Stancorp Financial Group, Inc. | 160 | 6,683 | ||||||
Janus Capital Group, Inc. | 820 | 6,585 | ||||||
Hartford Financial Services Group, Inc. | 390 | 6,404 | ||||||
Principal Financial Group, Inc. | 250 | 5,643 | ||||||
SunTrust Banks, Inc. | 190 | 5,613 | ||||||
Hospitality Properties Trust | 370 | 5,502 | ||||||
Regions Financial Corp. | 690 | 5,492 | ||||||
TD Ameritrade Holding Corp.* | 370 | 5,273 | ||||||
Loews Corp. | 170 | 4,803 | ||||||
CBL & Associates Properties, Inc. | 670 | 4,355 | ||||||
CME Group, Inc. | 20 | 4,162 | ||||||
Lincoln National Corp. | 220 | 4,145 | ||||||
iStar Financial Inc. | 1,840 | 4,103 | ||||||
Genworth Financial, Inc. — Class A | 1,370 | 3,877 | ||||||
American Capital Ltd. | 1,190 | 3,856 | ||||||
SEI Investments Co. | 220 | 3,456 | ||||||
Developers Diversified Realty Corp. | 690 | 3,367 | ||||||
American International Group, Inc. | 2,090 | 3,281 | ||||||
Affiliated Managers Group, Inc.* | 70 | 2,934 | ||||||
SL Green Realty Corp. | 100 | 2,590 | ||||||
CIT Group, Inc. | 520 | 2,361 | ||||||
Aircastle Ltd. | 470 | 2,247 | ||||||
Boston Properties, Inc. | 40 | 2,200 | ||||||
General Growth Properties, Inc. | 1,580 | 2,038 | ||||||
Legg Mason, Inc. | 70 | 1,534 | ||||||
First Marblehead Corp.* | 1,110 | 1,432 | ||||||
Discover Financial Services | 140 | 1,334 | ||||||
AvalonBay Communities, Inc. | 20 | 1,212 | ||||||
Taubman Centers, Inc. | 40 | 1,018 | ||||||
BB&T Corp. | 30 | 824 | ||||||
American National Insurance Co. | 10 | 737 | ||||||
CNA Financial Corp. | 40 | 658 | ||||||
XL Capital Ltd. | 110 | 407 | ||||||
East-West Bancorp, Inc. | 10 | 160 | ||||||
Eaton Vance Corp. | 1 | 21 | ||||||
TFS Financial Corp | 1 | 13 | ||||||
Total Financials | 2,958,985 | |||||||
HEALTH CARE 5.7% | ||||||||
Genentech, Inc.*§ | 3,670 | 304,280 | ||||||
Datascope Corp.§ | 5,640 | 294,634 | ||||||
Mentor Corp.§ | 4,910 | 151,866 | ||||||
Teva Pharmaceutical Industries Ltd. — SP ADR§ | 2,599 | 110,639 | ||||||
Perrigo Co.§ | 2,590 | 83,683 | ||||||
C.R. Bard, Inc.§ | 990 | 83,417 | ||||||
King Pharmaceuticals, Inc.*§ | 5,250 | 55,755 | ||||||
Celgene Corp.*§ | 930 | 51,410 | ||||||
LifePoint Hospitals, Inc.*§ | 1,980 | 45,223 | ||||||
Thermo Fisher Scientific, Inc.*§ | 1,280 | 43,610 | ||||||
Hill-Rom Holdings, Inc.§ | 2,530 | 41,644 | ||||||
Life Technologies Corp.* | 1,704 | 39,720 | ||||||
WellPoint, Inc.*§ | 860 | 36,232 |
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
AmerisourceBergen Corp.§ | 920 | $ | 32,807 | |||||
ResMed, Inc.*§ | 870 | 32,608 | ||||||
Lincare Holdings, Inc.*§ | 1,160 | 31,239 | ||||||
Forest Laboratories, Inc.*§ | 1,210 | 30,819 | ||||||
Millipore Corp.*§ | 560 | 28,851 | ||||||
Universal Health Services, Inc. — Class B§ | 750 | 28,177 | ||||||
Cardinal Health, Inc.§ | 710 | 24,474 | ||||||
Baxter International, Inc.§ | 400 | 21,436 | ||||||
Charles River Laboratories International, Inc.*§ | 800 | 20,960 | ||||||
Biogen Idec, Inc.*§ | 440 | 20,957 | ||||||
UnitedHealth Group, Inc. | 771 | 20,509 | ||||||
Vertex Pharmaceuticals, Inc.*§ | 640 | 19,443 | ||||||
DENTSPLY International, Inc.§ | 670 | 18,921 | ||||||
Amgen, Inc.* | 280 | 16,170 | ||||||
Aetna, Inc. | 500 | 14,250 | ||||||
Humana, Inc.* | 370 | 13,794 | ||||||
Health Net, Inc.* | 1,100 | 11,979 | ||||||
Kinetic Concepts, Inc.* | 590 | 11,316 | ||||||
Inverness Medical Innovations, Inc.* | 590 | 11,157 | ||||||
Beckman Coulter, Inc.§ | 240 | 10,546 | ||||||
Intuitive Surgical, Inc.*§ | 70 | 8,889 | ||||||
Coventry Health Care, Inc.* | 581 | 8,645 | ||||||
Abraxis BioScience, Inc.*§ | 128 | 8,438 | ||||||
CIGNA Corp. | 480 | 8,088 | ||||||
Zimmer Holdings, Inc.*§ | 200 | 8,084 | ||||||
Community Health Systems, Inc.*§ | 500 | 7,290 | ||||||
Inverness Medical Innovations* | 50 | 6,124 | ||||||
Pediatrix Medical Group, Inc.* | 190 | 6,023 | ||||||
Endo Pharmaceuticals Holdings, Inc.*§ | 230 | 5,952 | ||||||
Brookdale Senior Living, Inc. | 1,010 | 5,636 | ||||||
Johnson & Johnson, Inc.§ | 90 | 5,385 | ||||||
Novartis AG — SP ADR§ | 100 | 4,976 | ||||||
Wyeth§ | 130 | 4,876 | ||||||
McKesson Corp. | 110 | 4,260 | ||||||
Sanofi-Aventis — SP ADR§ | 130 | 4,181 | ||||||
GlaxoSmithKline PLC — SP ADR§ | 110 | 4,100 | ||||||
Myriad Genetics, Inc.*§ | 60 | 3,976 | ||||||
Abbott Laboratories§ | 70 | 3,736 | ||||||
AstraZeneca PLC — SP ADR§ | 80 | 3,282 | ||||||
Alexion Pharmaceuticals, Inc.*§ | 90 | 3,257 | ||||||
OSI Pharmaceuticals, Inc.*§ | 80 | 3,124 | ||||||
Onyx Pharmaceuticals, Inc.*§ | 90 | 3,074 | ||||||
Bristol-Myers Squibb Co.§ | 130 | 3,023 | ||||||
Eli Lilly & Co. | 70 | 2,819 | ||||||
United Therapeutics Corp.*§ | 30 | 1,877 | ||||||
Quest Diagnostics, Inc.§ | 30 | 1,557 | ||||||
Shire PLC — SP ADR§ | 30 | 1,343 | ||||||
BioMarin Pharmaceuticals, Inc.* | 1 | 18 | ||||||
Total Health Care | 1,894,559 | |||||||
UTILITIES 4.0% | ||||||||
Constellation Energy Group, Inc. | 11,610 | 291,295 | ||||||
Puget Energy, Inc.§ | 10,560 | 287,971 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Pepco Holdings, Inc.§ | 4,910 | $ | 87,202 | |||||
American Water Works Company, Inc.§ | 3,850 | 80,388 | ||||||
DPL, Inc.§ | 3,340 | 76,286 | ||||||
UGI Corp.§ | 3,030 | 73,993 | ||||||
Pinnacle West Capital Corp. | 1,690 | 54,300 | ||||||
Alliant Energy Corp. | 1,840 | 53,691 | ||||||
Atmos Energy Corp. | 1,720 | 40,764 | ||||||
AES Corp.* | 3,750 | 30,900 | ||||||
DTE Energy Co.§ | 850 | 30,319 | ||||||
Great Plains Energy, Inc.§ | 1,550 | 29,961 | ||||||
TECO Energy, Inc.§ | 1,930 | 23,835 | ||||||
National Fuel Gas Co.§ | 740 | 23,184 | ||||||
NV Energy, Inc. | 2,310 | 22,846 | ||||||
Edison International | 560 | 17,987 | ||||||
PG&E Corp.§ | 461 | 17,845 | ||||||
Mirant Corp.* | 740 | 13,964 | ||||||
SCANA Corp.§ | 290 | 10,324 | ||||||
Oneok, Inc.§ | 330 | 9,610 | ||||||
Questar Corp.§ | 190 | 6,211 | ||||||
Dominion Resources, Inc.§ | 150 | 5,376 | ||||||
Energen Corp.§ | 170 | 4,986 | ||||||
AGL Resources, Inc.§ | 130 | 4,076 | ||||||
Consolidated Edison, Inc. | 100 | 3,893 | ||||||
Sempra Energy§ | 90 | 3,837 | ||||||
Piedmont Natural Gas Co.§ | 120 | 3,800 | ||||||
New Jersey Resources Corp.§ | 90 | 3,542 | ||||||
WGL Holdings, Inc.§ | 100 | 3,269 | ||||||
Nicor, Inc.§ | 80 | 2,779 | ||||||
Northwest Natural Gas Co.§ | 60 | 2,654 | ||||||
Laclede Group, Inc.§ | 50 | 2,342 | ||||||
Integrys Energy Group, Inc.§ | 50 | 2,149 | ||||||
Wisconsin Energy Corp.§ | 50 | 2,099 | ||||||
Public Service Enterprise Group, Inc.§ | 20 | 583 | ||||||
Exelon Corp.§ | 10 | 556 | ||||||
Equitable Resources, Inc. | 1 | 34 | ||||||
PPL Corp.§ | 1 | 31 | ||||||
Reliant Energy, Inc.* | 3 | 17 | ||||||
Total Utilities | 1,328,899 | |||||||
CONSUMER DISCRETIONARY 3.5% | ||||||||
Landry’s Restaurants, Inc.§ | 24,865 | 288,434 | ||||||
DreamWorks Animation SKG, Inc. — Class A*§ | 3,370 | 85,126 | ||||||
DIRECTV Group, Inc.*§ | 2,700 | 61,857 | ||||||
Hasbro, Inc.§ | 2,070 | 60,382 | ||||||
Burger King Holdings, Inc.§ | 1,750 | 41,790 | ||||||
Regal Entertainment Group — Class A§ | 3,920 | 40,023 | ||||||
DeVry, Inc.§ | 660 | 37,891 | ||||||
Comcast Corp. — Class A§ | 2,080 | 35,110 | ||||||
HSN, Inc.*§ | 4,300 | 31,261 | ||||||
RadioShack Corp.§ | 1,790 | 21,373 | ||||||
John Wiley & Sons, Inc. — Class A§ | 600 | 21,348 | ||||||
The Gap, Inc.§ | 1,350 | 18,076 | ||||||
VF Corp.§ | 330 | 18,074 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Time Warner, Inc.§ | 1,760 | $ | 17,706 | |||||
Weight Watchers International, Inc.§ | 590 | 17,358 | ||||||
Liberty Media Corp — Capital* | 3,680 | 17,333 | ||||||
Tiffany & Co.§ | 730 | 17,250 | ||||||
Liberty Global, Inc. — Class A*§ | 960 | 15,283 | ||||||
Mohawk Industries, Inc.*§ | 340 | 14,610 | ||||||
Dick’s Sporting Goods, Inc.*§ | 950 | 13,404 | ||||||
Carnival Corp.§ | 520 | 12,646 | ||||||
Centex Corp.§ | 1,170 | 12,449 | ||||||
Amazon.com, Inc.*§ | 220 | 11,282 | ||||||
Interval Leisure Group, Inc.*§ | 1,810 | 9,756 | ||||||
Service Corporation International§ | 1,830 | 9,095 | ||||||
Royal Caribbean Cruises Ltd. | 660 | 9,075 | ||||||
Garmin Ltd. | 460 | 8,818 | ||||||
Ticketmaster Entertainment, Inc.*§ | 1,360 | 8,731 | ||||||
BorgWarner, Inc.§ | 400 | 8,708 | ||||||
D.R. Horton, Inc. | 1,180 | 8,343 | ||||||
Petsmart, Inc.§ | 440 | 8,118 | ||||||
Whirlpool Corp.§ | 180 | 7,443 | ||||||
Central European Media Enterprises Ltd. — Class A*§ | 340 | 7,385 | ||||||
Expedia, Inc.*§ | 881 | 7,259 | ||||||
Autoliv, Inc.§ | 320 | 6,867 | ||||||
Penske Auto Group, Inc.§ | 870 | 6,682 | ||||||
priceline.com, Inc.*§ | 90 | 6,629 | ||||||
J.C. Penney Company, Inc.§ | 330 | 6,501 | ||||||
CBS Corp. | 760 | 6,224 | ||||||
Gannett Co., Inc. | 750 | 6,000 | ||||||
Barnes & Noble, Inc.§ | 400 | 6,000 | ||||||
Big Lots, Inc.*§ | 410 | 5,941 | ||||||
Clear Channel Outdoor Holdings, Inc. — Class A* | 960 | 5,904 | ||||||
Corinthian Colleges, Inc.*§ | 330 | 5,402 | ||||||
CTC Media, Inc.*§ | 1,090 | 5,232 | ||||||
Snap-On, Inc.§ | 130 | 5,119 | ||||||
Liberty Media Corp — Interactive* | 1,520 | 4,742 | ||||||
Capella Education Co.*§ | 80 | 4,701 | ||||||
Hillenbrand, Inc.§ | 280 | 4,670 | ||||||
TRW Automotive Holdings Corp.* | 1,280 | 4,608 | ||||||
Urban Outfitters, Inc.*§ | 300 | 4,494 | ||||||
Matthews International Corp. — Class A§ | 120 | 4,402 | ||||||
Abercrombie & Fitch Co. — Class A | 190 | 4,383 | ||||||
AnnTaylor Stores Corp.* | 700 | 4,039 | ||||||
Meredith Corp. | 230 | 3,938 | ||||||
K12 Inc.*§ | 180 | 3,375 | ||||||
American Public Education, Inc.*§ | 90 | 3,347 | ||||||
Sotheby’s§ | 370 | 3,289 | ||||||
OfficeMax Inc. | 390 | 2,980 | ||||||
ITT Educational Services, Inc.*§ | 30 | 2,849 | ||||||
Williams-Sonoma, Inc. | 360 | 2,830 | ||||||
Phillips-Van Heusen Corp.§ | 100 | 2,013 | ||||||
Chipotle Mexican Grill, Inc. — Class A* | 30 | 1,859 | ||||||
Sears Holdings Corp.* | 40 | 1,555 |
MARKET | ||||||||
SHARES | VALUE | |||||||
O’Reilly Automotive, Inc.*§ | 50 | $ | 1,537 | |||||
Harman International Industries, Inc. | 70 | 1,171 | ||||||
Orient-Express Hotels Ltd. — Class A | 150 | 1,149 | ||||||
KB HOME | 80 | 1,090 | ||||||
Chico’s FAS, Inc.* | 220 | 920 | ||||||
News Corp. — Class A§ | 60 | 545 | ||||||
RH Donnelley Corp.* | 80 | 30 | ||||||
Total Consumer Discretionary | 1,145,814 | |||||||
INFORMATION TECHNOLOGY 2.7% | ||||||||
NDS Group PLC — SP ADR*§ | 5,856 | 335,783 | ||||||
Synopsys, Inc.*§ | 3,860 | 71,487 | ||||||
Applied Materials, Inc.§ | 3,260 | 33,024 | ||||||
Cypress Semiconductor Corp.*§ | 6,400 | 28,608 | ||||||
Jabil Circuit, Inc. | 3,730 | 25,177 | ||||||
BMC Software, Inc.*§ | 900 | 24,219 | ||||||
Activision Blizzard Inc.*§ | 2,500 | 21,600 | ||||||
WebMD Health Corp.*§ | 900 | 21,231 | ||||||
Zebra Technologies Corp. — Class A*§ | 1,030 | 20,868 | ||||||
National Instruments Corp.§ | 800 | 19,488 | ||||||
Computer Sciences Corp.*§ | 540 | 18,976 | ||||||
Western Digital Corp.*§ | 1,590 | 18,206 | ||||||
Arrow Electronics, Inc.* | 830 | 15,637 | ||||||
EchoStar Corp. — Class A*§ | 1,050 | 15,614 | ||||||
Hewlett-Packard Co.§ | 430 | 15,605 | ||||||
Ingram Micro, Inc. — Class A*§ | 1,070 | 14,327 | ||||||
Apple, Inc.*§ | 160 | 13,656 | ||||||
Seagate Technology | 2,920 | 12,936 | ||||||
MEMC Electronic Materials, Inc.*§ | 900 | 12,852 | ||||||
Affiliated Computer Services, Inc. — Class A*§ | 260 | 11,947 | ||||||
Nvidia Corp.* | 1,461 | 11,790 | ||||||
Avnet, Inc.*§ | 640 | 11,654 | ||||||
Xerox Corp. | 1,450 | 11,557 | ||||||
Vishay Intertechnology, Inc.* | 3,350 | 11,457 | ||||||
CommScope, Inc.*§ | 710 | 11,033 | ||||||
Fidelity National Information Services, Inc.§ | 670 | 10,901 | ||||||
Novellus Systems, Inc.*§ | 830 | 10,242 | ||||||
EMC Corp*§ | 900 | 9,423 | ||||||
Cadence Design Systems, Inc.* | 2,570 | 9,406 | ||||||
Fairchild Semiconductor International, Inc.* | 1,350 | 6,602 | ||||||
Sun Microsystems, Inc.* | 1,630 | 6,227 | ||||||
Intersil Corp. — Class A§ | 670 | 6,157 | ||||||
Micron Technology, Inc.* | 1,980 | 5,227 | ||||||
Convergys Corp.* | 730 | 4,679 | ||||||
SanDisk Corp.* | 480 | 4,608 | ||||||
VMware, Inc.* | 180 | 4,264 | ||||||
Acxiom Corp. | 463 | 3,755 | ||||||
KLA-Tencor Corp. | 141 | 3,072 | ||||||
Molex, Inc.§ | 190 | 2,753 | ||||||
ADC Telecommunications, Inc.* | 470 | 2,571 | ||||||
Broadridge Financial Solutions, Inc.§ | 190 | 2,383 |
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Lender Processing Services, Inc.§ | 80 | $ | 2,356 | |||||
Lexmark International, Inc.* | 80 | 2,152 | ||||||
ANSYS, Inc.*§ | 60 | 1,673 | ||||||
Corning, Inc. | 130 | 1,239 | ||||||
Amphenol Corp.§ | 50 | 1,199 | ||||||
Ciena Corp.*§ | 121 | 811 | ||||||
NCR Corp.* | 2 | 28 | ||||||
Lam Research Corp.* | 1 | 21 | ||||||
Total Information Technology | 910,481 | |||||||
CONSUMER STAPLES 2.6% | ||||||||
UST, Inc.§ | 4,090 | 283,764 | ||||||
BJ’s Wholesale Club, Inc.*§ | 2,370 | 81,196 | ||||||
Alberto-Culver Co. | 2,690 | 65,932 | ||||||
Del Monte Foods Co. | 6,220 | 44,411 | ||||||
Church & Dwight Co., Inc.§ | 740 | 41,529 | ||||||
Herbalife Ltd.§ | 1,520 | 32,954 | ||||||
PepsiAmericas, Inc.§ | 1,480 | 30,133 | ||||||
Procter & Gamble Co.§ | 400 | 24,728 | ||||||
Dr Pepper Snapple Group, Inc.*§ | 1,400 | 22,750 | ||||||
SUPERVALU, INC. | 1,260 | 18,396 | ||||||
Hansen Natural Corp.*§ | 540 | 18,106 | ||||||
Safeway, Inc. | 760 | 18,065 | ||||||
Wal-Mart Stores, Inc.§ | 300 | 16,818 | ||||||
NBTY, Inc.*§ | 960 | 15,024 | ||||||
Bunge Ltd.§ | 270 | 13,978 | ||||||
Reynolds American, Inc.§ | 340 | 13,705 | ||||||
Pepsi Bottling Group, Inc.§ | 560 | 12,606 | ||||||
Bare Escentuals, Inc.* | 2,380 | 12,447 | ||||||
Unilever NV§ | 430 | 10,556 | ||||||
Kraft Foods, Inc.§ | 330 | 8,860 | ||||||
Kimberly-Clark Corp.§ | 160 | 8,438 | ||||||
Molson Coors Brewing Co. — Class B§ | 170 | 8,316 | ||||||
Coca-Cola Enterprises, Inc. | 660 | 7,940 | ||||||
CVS Caremark Corp.§ | 240 | 6,898 | ||||||
Costco Wholesale Corp.§ | 100 | 5,250 | ||||||
Walgreen Co. | 200 | 4,934 | ||||||
General Mills, Inc.§ | 80 | 4,860 | ||||||
Kroger Co.§ | 180 | 4,754 | ||||||
Kellogg Co.§ | 100 | 4,385 | ||||||
Corn Products International, Inc.§ | 130 | 3,751 | ||||||
Sysco Corp.§ | 160 | 3,670 | ||||||
Cadbury PLC — SP ADR§ | 90 | 3,210 | ||||||
H.J. Heinz Co.§ | 80 | 3,008 | ||||||
Energizer Holdings, Inc.* | 50 | 2,707 | ||||||
Whole Foods Market, Inc. | 180 | 1,699 | ||||||
Casey’s General Stores, Inc.§ | 50 | 1,139 | ||||||
WD-40 Co.§ | 40 | 1,132 | ||||||
Winn-Dixie Stores, Inc.*§ | 70 | 1,127 | ||||||
Ruddick Corp.§ | 40 | 1,106 | ||||||
McCormick & Co., Inc.§ | 31 | 988 | ||||||
Hormel Foods Corp. | 30 | 932 | ||||||
United Natural Foods, Inc.*§ | 50 | 891 | ||||||
Clorox Co. | 10 | 556 | ||||||
Tyson Foods, Inc. — Class A | 20 | 175 |
MARKET | ||||||||
SHARES | VALUE | |||||||
ConAgra Foods, Inc. | 2 | $ | 33 | |||||
Archer-Daniels-Midland Co.§ | 1 | 29 | ||||||
Total Consumer Staples | 867,886 | |||||||
INDUSTRIALS 2.3% | ||||||||
Republic Services, Inc.§ | 6,844 | 169,663 | ||||||
Brink’s Co.§ | 2,880 | 77,414 | ||||||
Iron Mountain, Inc.* | 2,771 | 68,527 | ||||||
Southwest Airlines Co. | 4,620 | 39,824 | ||||||
Alliant Techsystems, Inc.*§ | 360 | 30,874 | ||||||
Hubbell, Inc. — Class B§ | 710 | 23,203 | ||||||
Trinity Industries, Inc.§ | 1,250 | 19,700 | ||||||
Flowserve Corp.§ | 340 | 17,510 | ||||||
AMR Corp.* | 1,530 | 16,325 | ||||||
Continental Airlines, Inc. — Class B* | 890 | 16,073 | ||||||
Ryder System, Inc.§ | 400 | 15,512 | ||||||
Quanta Services, Inc.*§ | 680 | 13,464 | ||||||
SPX Corp.§ | 330 | 13,381 | ||||||
Valmont Industries, Inc.§ | 200 | 12,272 | ||||||
Timken Co.§ | 620 | 12,171 | ||||||
United Rentals, Inc.* | 1,331 | 12,139 | ||||||
Fluor Corp.§ | 250 | 11,217 | ||||||
Carlisle Companies, Inc.§ | 510 | 10,557 | ||||||
Northrop Grumman Corp.§ | 230 | 10,359 | ||||||
McDermott International, Inc.*§ | 1,030 | 10,176 | ||||||
Precision Castparts Corp.§ | 170 | 10,112 | ||||||
WESCO International, Inc.* | 480 | 9,230 | ||||||
Deere & Co.§ | 240 | 9,197 | ||||||
Thomas & Betts Corporation* | 380 | 9,128 | ||||||
Manitowoc Co., Inc.§ | 1,020 | 8,833 | ||||||
Delta Air Lines, Inc.* | 730 | 8,366 | ||||||
Bucyrus International, Inc.§ | 440 | 8,149 | ||||||
General Cable Corp.*§ | 420 | 7,430 | ||||||
Hertz Global Holdings, Inc.* | 1,420 | 7,199 | ||||||
GATX Corp.§ | 230 | 7,123 | ||||||
Steelcase, Inc. — Class A§ | 1,180 | 6,632 | ||||||
Boeing Co. | 140 | 5,974 | ||||||
UAL Corp.§ | 530 | 5,841 | ||||||
Terex Corp.* | 320 | 5,542 | ||||||
Avis Budget Group, Inc.* | 7,560 | 5,292 | ||||||
Manpower, Inc.§ | 140 | 4,759 | ||||||
JetBlue Airways Corp.* | 600 | 4,260 | ||||||
Copa Holdings SA§ | 140 | 4,245 | ||||||
Caterpillar, Inc.§ | 90 | 4,020 | ||||||
US Airways Group, Inc.* | 510 | 3,942 | ||||||
Textron, Inc. | 260 | 3,606 | ||||||
Alaska Air Group, Inc.* | 110 | 3,218 | ||||||
SkyWest, Inc. | 170 | 3,162 | ||||||
Allegiant Travel Co.* | 60 | 2,914 | ||||||
Foster Wheeler Ltd.*§ | 110 | 2,572 | ||||||
Oshkosh Corp. | 241 | 2,142 | ||||||
AirTran Holdings, Inc.* | 480 | 2,131 | ||||||
Kansas City Southern*§ | 100 | 1,905 | ||||||
Kennametal, Inc.§ | 50 | 1,110 | ||||||
Eaton Corp. | 10 | 497 | ||||||
Kirby Corp.*§ | 10 | 274 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
General Electric Co. | 10 | $ | 162 | |||||
Spirit AeroSystems Holdings, Inc. — | ||||||||
Class A* | 10 | 102 | ||||||
Stericycle, Inc.*§ | 1 | 52 | ||||||
Shaw Group, Inc.* | 1 | 20 | ||||||
KBR, Inc.§ | 1 | 15 | ||||||
Total Industrials | 759,517 | |||||||
TELECOMMUNICATION SERVICES 2.0% | ||||||||
Embarq Corp.§ | 9,650 | 347,014 | ||||||
Centennial Communications | ||||||||
Corp.*§ | 13,920 | 112,195 | ||||||
MetroPCS Communications, Inc.*§ | 3,570 | 53,014 | ||||||
Verizon Communications, Inc.§ | 1,000 | 33,900 | ||||||
Qwest Communications | ||||||||
International, Inc.§ | 7,130 | 25,953 | ||||||
American Tower Corp. — Class A*§ | 860 | 25,215 | ||||||
AT&T, Inc.§ | 580 | 16,530 | ||||||
U.S. Cellular Corp.*§ | 300 | 12,972 | ||||||
Deutsche Telekom AG — SP ADR§ | 600 | 9,180 | ||||||
NII Holdings, Inc. — Class B* | 350 | 6,363 | ||||||
Windstream Corp.§ | 240 | 2,208 | ||||||
Tele Norte Leste Participacoes | ||||||||
SA — ADR§ | 140 | 1,949 | ||||||
Frontier Communications Corp.§ | 200 | 1,748 | ||||||
tw telecom Inc.*§ | 150 | 1,271 | ||||||
NTELOS Holdings Corp.§ | 50 | 1,233 | ||||||
Level 3 Communications, Inc.* | 1,400 | 980 | ||||||
Cbeyond, Inc.*§ | 50 | 799 | ||||||
Global Crossing*§ | 90 | 715 | ||||||
Iowa Telecommunications Services, | ||||||||
Inc.§ | 50 | 714 | ||||||
Telephone & Data Systems, Inc. | 10 | 318 | ||||||
Total Telecommunication Services | 654,271 | |||||||
MATERIALS 1.5% | ||||||||
Rohm & Haas Co.§ | 3,910 | 241,599 | ||||||
Crown Holdings, Inc.*§ | 2,580 | 49,536 | ||||||
Lubrizol Corp.§ | 740 | 26,929 | ||||||
AptarGroup, Inc.§ | 680 | 23,963 | ||||||
Monsanto Co.§ | 260 | 18,291 | ||||||
Alcoa, Inc.§ | 1,450 | 16,327 | ||||||
Airgas, Inc.§ | 380 | 14,816 | ||||||
Ashland, Inc. | 1,300 | 13,663 | ||||||
CF Industries Holdings, Inc.§ | 270 | 13,273 | ||||||
AK Steel Holding Corp.§ | 1,230 | 11,464 | ||||||
Nalco Holding Co.§ | 900 | 10,386 | ||||||
The Mosaic Co.§ | 280 | 9,688 | ||||||
Huntsman Corp.§ | 2,450 | 8,428 | ||||||
Allegheny Technologies, Inc.§ | 260 | 6,638 | ||||||
International Paper Co.§ | 550 | 6,490 | ||||||
Freeport-McMoRan Copper & | ||||||||
Gold, Inc. | 260 | 6,354 | ||||||
Dow Chemical Co.§ | 400 | 6,036 | ||||||
Temple-Inland, Inc.§ | 1,210 | 5,808 | ||||||
Reliance Steel & Aluminum Co.§ | 270 | 5,384 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Albemarle Corp.§ | 240 | $ | 5,352 | |||||
Southern Copper Corp.§ | 1 | 16 | ||||||
Total Materials | 500,441 | |||||||
ENERGY 1.2% | ||||||||
Precision Drilling Trust | 8,225 | 69,006 | ||||||
SEACOR Holdings, Inc.* | 500 | 33,325 | ||||||
ENSCO International, Inc. | 1,010 | 28,674 | ||||||
ConocoPhillips | 490 | 25,382 | ||||||
Anadarko Petroleum Corp. | 460 | 17,733 | ||||||
Cimarex Energy Co. | 640 | 17,139 | ||||||
Noble Corp. | 740 | 16,347 | ||||||
Superior Energy Services* | 1,000 | 15,930 | ||||||
Valero Energy Corp. | 580 | 12,551 | ||||||
Unit Corp.* | 460 | 12,291 | ||||||
Patterson-UTI Energy, Inc. | 940 | 10,819 | ||||||
Atwood Oceanics, Inc.* | 640 | 9,779 | ||||||
Quicksilver Resources, Inc.* | 1,570 | 8,745 | ||||||
Rowan Companies, Inc. | 520 | 8,268 | ||||||
Mariner Energy, Inc.* | 800 | 8,160 | ||||||
Tesoro Corp. | 610 | 8,034 | ||||||
National-Oilwell Varco, Inc.* | 320 | 7,821 | ||||||
FMC Technologies, Inc.* | 270 | 6,434 | ||||||
Marathon Oil Corp. | 220 | 6,019 | ||||||
Key Energy Services, Inc.* | 1,360 | 5,998 | ||||||
Holly Corp. | 320 | 5,834 | ||||||
Transocean LTD.* | 120 | 5,670 | ||||||
Global Industries Ltd.* | 1,520 | 5,305 | ||||||
Nabors Industries Ltd.* | 430 | 5,147 | ||||||
Williams Companies, Inc. | 270 | 3,910 | ||||||
Chesapeake Energy Corp. | 230 | 3,719 | ||||||
Helmerich & Payne, Inc. | 160 | 3,640 | ||||||
Forest Oil Corp.* | 210 | 3,463 | ||||||
Smith International, Inc. | 140 | 3,205 | ||||||
W&T Offshore, Inc. | 210 | 3,007 | ||||||
Massey Energy Co. | 210 | 2,896 | ||||||
Helix Energy Solutions Group, Inc.* | 380 | 2,751 | ||||||
Frontier Oil Corp. | 180 | 2,273 | ||||||
Patriot Coal Corp.* | 350 | 2,187 | ||||||
Murphy Oil Corp. | 30 | 1,330 | ||||||
Oceaneering International, Inc.* | 41 | 1,195 | ||||||
Pride International, Inc.* | 60 | 959 | ||||||
Southwestern Energy Co.* | 30 | 869 | ||||||
Oil States International, Inc.* | 10 | 187 | ||||||
Total Energy | 386,002 | |||||||
Total Common Stocks | ||||||||
(Cost $11,367,637) | 11,406,855 | |||||||
EXCHANGE TRADED FUNDS 10.1% | ||||||||
iShares S&P GSCI Commodity | ||||||||
Indexed Trust* | 57,790 | 1,653,372 | ||||||
iShares MSCI Emerging | ||||||||
Markets Index Fund | 19,690 | 491,659 | ||||||
Liberty All Star Equity Fund§ | 44,120 | 154,420 | ||||||
Eaton Vance Tax-Managed | ||||||||
Buy-Write Income Fund§ | 12,120 | 151,864 |
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Eaton Vance Tax-Managed Buy-Write Opportunities Fund§ | 14,720 | $ | 150,144 | |||||
First Trust Enhanced Equity Income Fund, Inc.§ | 16,910 | 149,653 | ||||||
Nuveen Equity Premium and Growth Fund§ | 13,940 | 149,576 | ||||||
Nuveen Core Equity Alpha Fund§ | 15,560 | 149,532 | ||||||
Nuveen Equity Premium Opportunity Fund§ | 13,820 | 147,598 | ||||||
Vanguard Emerging Markets ETF§ | 5,220 | 123,714 | ||||||
Total Exchange Traded Funds | ||||||||
(Cost $3,571,115) | 3,321,532 | |||||||
CONTRACTS | ||||||||
OPTIONS PURCHASED 0.1% | ||||||||
Put Options On: | ||||||||
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 840 | 20 | 43,750 | ||||||
Total Options Purchased | ||||||||
(Cost $110,076) | 43,750 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 28.5% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 2,412,008 | 2,412,008 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 2,412,008 | 2,412,008 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 2,412,008 | 2,412,008 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 2,177,016 | 2,177,016 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $9,413,040) | 9,413,040 | |||||||
Total Long Securities 73.2% | ||||||||
(Cost $24,461,868) | $ | 24,185,177 | ||||||
SHARES | ||||||||
COMMON STOCKS SOLD SHORT (25.4)% | ||||||||
ENERGY (0.9)% | ||||||||
SandRidge Energy, Inc.* | 10 | (61 | ) | |||||
Cheniere Energy, Inc.* | 100 | (285 | ) | |||||
Arch Coal, Inc. | 160 | (2,606 | ) | |||||
Hercules Offshore, Inc.* | 600 | (2,850 | ) | |||||
Hess Corp. | 60 | (3,218 | ) | |||||
Diamond Offshore Drilling, Inc. | 70 | (4,126 | ) | |||||
Whiting Petroleum Corp.* | 170 | (5,688 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Alpha Natural Resources, Inc.* | 360 | $ | (5,828 | ) | ||||
Schlumberger Ltd. | 150 | (6,350 | ) | |||||
El Paso Corp. | 940 | (7,360 | ) | |||||
Range Resources Corp. | 220 | (7,566 | ) | |||||
CONSOL Energy Inc. | 280 | (8,002 | ) | |||||
Walter Industries, Inc. | 500 | (8,755 | ) | |||||
CNX Gas Corp.* | 390 | (10,647 | ) | |||||
Encore Acquisition Co.* | 420 | (10,718 | ) | |||||
Exterran Holdings, Inc.* | 560 | (11,928 | ) | |||||
Teekay Corp. | 670 | (13,166 | ) | |||||
IHS, Inc.* | 380 | (14,220 | ) | |||||
Continental Resources, Inc.* | 760 | (15,740 | ) | |||||
Peabody Energy Corp. | 700 | (15,925 | ) | |||||
Plains Exploration & Production Co.* | 900 | (20,916 | ) | |||||
Newfield Exploration Co.* | 1,200 | (23,700 | ) | |||||
Overseas Shipholding Group, Inc | 670 | (28,214 | ) | |||||
Precision Drilling Trust | 8,745 | (73,400 | ) | |||||
Total Energy | (301,269 | ) | ||||||
MATERIALS (1.1)% | ||||||||
Southern Copper Corp. | 1 | (16 | ) | |||||
Intrepid Potash, Inc.* | 10 | (208 | ) | |||||
Louisiana-Pacific Corp. | 1,040 | (1,622 | ) | |||||
United States Steel Corp. | 50 | (1,860 | ) | |||||
Carpenter Technology Corp. | 100 | (2,054 | ) | |||||
Cliffs Natural Resources, Inc. | 130 | (3,329 | ) | |||||
RPM International, Inc. | 330 | (4,386 | ) | |||||
Commercial Metals Co. | 420 | (4,985 | ) | |||||
International Flavors & Fragrances, Inc. | 180 | (5,350 | ) | |||||
FMC Corp. | 120 | (5,368 | ) | |||||
Sigma-Aldrich Corp. | 140 | (5,914 | ) | |||||
Ashland, Inc. | 680 | (7,147 | ) | |||||
Westlake Chemical Corp. | 450 | (7,330 | ) | |||||
Owens-Illinois, Inc.* | 300 | (8,199 | ) | |||||
Celanese Corp. | 710 | (8,825 | ) | |||||
Chemtura Corp. | 6,690 | (9,366 | ) | |||||
Nucor Corp. | 210 | (9,702 | ) | |||||
Cabot Corp. | 820 | (12,546 | ) | |||||
Valhi, Inc. | 1,210 | (12,947 | ) | |||||
Scotts Miracle-Gro Co. — Class A | 440 | (13,077 | ) | |||||
Eastman Chemical Co. | 420 | (13,318 | ) | |||||
Eagle Materials, Inc. | 1,000 | (18,410 | ) | |||||
Weyerhaeuser Co. | 1,170 | (35,814 | ) | |||||
Ecolab, Inc. | 1,030 | (36,204 | ) | |||||
Valspar Corp. | 3,110 | (56,260 | ) | |||||
Newmont Mining Corp. | 1,650 | (67,155 | ) | |||||
Total Materials | (351,392 | ) | ||||||
TELECOMMUNICATION SERVICES (1.1)% | ||||||||
Sprint Nextel Corp.* | 2,250 | (4,118 | ) | |||||
SBA Communications Corp. — Class A* | 1,060 | (17,299 | ) | |||||
CenturyTel, Inc. | 12,630 | (345,178 | ) | |||||
Total Telecommunication Services | (366,595 | ) | ||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CONSUMER STAPLES (1.2)% | ||||||||
Rite Aid Corp.* | 1,060 | $ | (327 | ) | ||||
Altria Group, Inc. | 470 | (7,078 | ) | |||||
Hershey Co. | 280 | (9,727 | ) | |||||
Coca-Cola Co. | 270 | (12,223 | ) | |||||
Archer Daniels Midland Co. | 521 | (15,020 | ) | |||||
Constellation Brands, Inc. — Class A* | 1,140 | (17,978 | ) | |||||
Smithfield Foods, Inc.* | 1,340 | (18,854 | ) | |||||
Philip Morris International, Inc. | 490 | (21,320 | ) | |||||
Dean Foods Co.* | 1,280 | (23,002 | ) | |||||
Colgate-Palmolive Co. | 480 | (32,899 | ) | |||||
Sara Lee Corp. | 4,480 | (43,859 | ) | |||||
ConAgra Foods, Inc. | 3,052 | (50,358 | ) | |||||
Campbell Soup Co. | 1,830 | (54,918 | ) | |||||
Avon Products, Inc. | 3,070 | (73,804 | ) | |||||
Total Consumer Staples | (381,367 | ) | ||||||
UTILITIES (1.6)% | ||||||||
PPL Corp. | 1 | (31 | ) | |||||
NiSource, Inc. | 500 | (5,485 | ) | |||||
Reliant Energy, Inc.* | 1,183 | (6,838 | ) | |||||
MDU Resources Group, Inc. | 340 | (7,337 | ) | |||||
Allegheny Energy, Inc. | 220 | (7,449 | ) | |||||
NSTAR | 300 | (10,947 | ) | |||||
Ameren Corp. | 370 | (12,306 | ) | |||||
Dynegy, Inc. — Class A* | 8,500 | (17,000 | ) | |||||
OGE Energy Corp. | 1,010 | (26,038 | ) | |||||
Centerpoint Energy, Inc. | 2,120 | (26,755 | ) | |||||
Equitable Resources, Inc. | 831 | (27,880 | ) | |||||
Duke Energy Corp. | 3,330 | (49,983 | ) | |||||
Southern Co. | 1,530 | (56,610 | ) | |||||
Aqua America, Inc. | 2,770 | (57,034 | ) | |||||
Xcel Energy Inc. | 3,410 | (63,256 | ) | |||||
Hawaiian Electric Industries, Inc. | 6,210 | (137,528 | ) | |||||
Total Utilities | (512,477 | ) | ||||||
CONSUMER DISCRETIONARY (2.2)% | ||||||||
Office Depot, Inc.* | 60 | (179 | ) | |||||
Boyd Gaming Corp. | 120 | (568 | ) | |||||
Coldwater Creek, Inc.* | 240 | (684 | ) | |||||
American Eagle Outfitters, Inc. | 90 | (842 | ) | |||||
GameStop Corp.* | 50 | (1,083 | ) | |||||
Signet Jewelers Ltd. | 200 | (1,734 | ) | |||||
AutoNation, Inc.* | 230 | (2,272 | ) | |||||
Fortune Brands, Inc. | 60 | (2,477 | ) | |||||
Dollar Tree, Inc.* | 70 | (2,926 | ) | |||||
Wynn Resorts, Ltd.* | 80 | (3,381 | ) | |||||
E.W. Scripps Co. — Class A | 1,690 | (3,735 | ) | |||||
M.D.C. Holdings, Inc. | 130 | (3,939 | ) | |||||
Interpublic Group of Companies, Inc.* | 1,020 | (4,039 | ) | |||||
Virgin Media, Inc. | 810 | (4,042 | ) | |||||
Scientific Games Corp. — Class A* | 260 | (4,560 | ) | |||||
Macy’s, Inc. | 490 | (5,071 | ) | |||||
Wyndham Worldwide Corp. | 850 | (5,567 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Liz Claiborne, Inc. | 2,260 | $ | (5,876 | ) | ||||
LKQ Corp.* | 590 | (6,879 | ) | |||||
International Game Technology | 590 | (7,015 | ) | |||||
CarMax, Inc.* | 910 | (7,171 | ) | |||||
Las Vegas Sands Corp.* | 1,240 | (7,353 | ) | |||||
Lennar Corp. — Class A | 890 | (7,716 | ) | |||||
Jones Apparel Group, Inc. | 1,350 | (7,911 | ) | |||||
Brinker International, Inc. | 780 | (8,221 | ) | |||||
Apollo Group, Inc. — Class A* | 120 | (9,194 | ) | |||||
Marriott International, Inc. — Class A | 480 | (9,336 | ) | |||||
Coach, Inc.* | 480 | (9,970 | ) | |||||
Starbucks Corp.* | 1,110 | (10,501 | ) | |||||
Morningstar, Inc.* | 300 | (10,650 | ) | |||||
NIKE, Inc. — Class B | 210 | (10,710 | ) | |||||
Strayer Education, Inc. | 50 | (10,720 | ) | |||||
Kohl’s Corp.* | 330 | (11,946 | ) | |||||
Federal-Mogul Corp.* | 2,850 | (12,056 | ) | |||||
Panera Bread Co. — Class A* | 250 | (13,060 | ) | |||||
Mattel, Inc. | 890 | (14,240 | ) | |||||
Yum! Brands, Inc. | 470 | (14,805 | ) | |||||
Hearst-Argyle Television, Inc. | 2,680 | (16,241 | ) | |||||
Goodyear Tire & Rubber Co.* | 2,730 | (16,298 | ) | |||||
Tim Hortons, Inc. | 570 | (16,439 | ) | |||||
Eastman Kodak Co. | 2,550 | (16,779 | ) | |||||
WABCO Holdings, Inc. | 1,130 | (17,843 | ) | |||||
Thor Industries, Inc. | 1,360 | (17,925 | ) | |||||
Saks, Inc.* | 4,850 | (21,243 | ) | |||||
NVR, Inc.* | 50 | (22,813 | ) | |||||
Cablevision Systems Corp. — Class A | 1,430 | (24,081 | ) | |||||
Choice Hotels International, Inc. | 950 | (28,557 | ) | |||||
Scripps Networks Interactive, Inc. — Class A | 1,360 | (29,920 | ) | |||||
Home Depot, Inc. | 1,330 | (30,617 | ) | |||||
Pulte Homes, Inc. | 3,750 | (40,988 | ) | |||||
McDonald’s Corp. | 900 | (55,971 | ) | |||||
H&R Block, Inc. | 2,950 | (67,024 | ) | |||||
Toll Brothers, Inc.* | 3,600 | (77,156 | ) | |||||
Total Consumer Discretionary | (742,324 | ) | ||||||
HEALTH CARE (2.9)% | ||||||||
Pfizer Inc. | 240 | (4,250 | ) | |||||
Hologic, Inc.* | 350 | (4,574 | ) | |||||
PDL BioPharma, Inc. | 850 | (5,253 | ) | |||||
Health Management Associates, | ||||||||
Inc. — Class A* | 3,620 | (6,480 | ) | |||||
Schering-Plough Corp. | 490 | (8,345 | ) | |||||
Amylin Pharmaceuticals, Inc.* | 840 | (9,114 | ) | |||||
Tenet Healthcare Corp.* | 12,500 | (14,375 | ) | |||||
Advanced Medical Optics, Inc.* | 2,240 | (14,806 | ) | |||||
Express Scripts, Inc.* | 270 | (14,845 | ) | |||||
CooperCompanies, Inc. | 940 | (15,416 | ) | |||||
Stryker Corp. | 570 | (22,771 | ) | |||||
Edwards Lifesciences Corp.* | 420 | (23,079 | ) | |||||
Hospira, Inc.* | 890 | (23,870 | ) |
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
BioMarin Pharmaceuticals, Inc.* | 1,481 | $ | (26,362 | ) | ||||
Teleflex, Inc. | 550 | (27,555 | ) | |||||
Boston Scientific Corp.* | 4,420 | (34,211 | ) | |||||
Merck & Company, Inc. | 1,180 | (35,872 | ) | |||||
Life Technologies Corp.* | 1,704 | (39,720 | ) | |||||
Gilead Sciences, Inc.* | 780 | (39,889 | ) | |||||
Techne Corp. | 640 | (41,293 | ) | |||||
Illumina, Inc.* | 1,640 | (42,722 | ) | |||||
Watson Pharmaceuticals, Inc.* | 1,810 | (48,092 | ) | |||||
Allergan, Inc. | 1,400 | (56,448 | ) | |||||
HLTH Corp.* | 5,600 | (58,576 | ) | |||||
Genzyme Corp.* | 1,170 | (77,653 | ) | |||||
Covidien Ltd. | 2,210 | (80,090 | ) | |||||
Cephalon, Inc.* | 1,040 | (80,122 | ) | |||||
Teva Pharmaceutical Industries | ||||||||
Ltd. — SP ADR | 2,540 | (108,169 | ) | |||||
Total Health Care | (963,952 | ) | ||||||
INFORMATION TECHNOLOGY (2.9)% | ||||||||
Western Union Co. | 10 | (143 | ) | |||||
Equinix, Inc.* | 20 | (1,064 | ) | |||||
MoneyGram International, Inc.* | 1,250 | (1,262 | ) | |||||
Acxiom Corp. | 243 | (1,971 | ) | |||||
Cognizant Technology Solutions Corp. — Class A* | 200 | (3,612 | ) | |||||
Riverbed Technology, Inc.* | 320 | (3,645 | ) | |||||
Nuance Communications, Inc.* | 530 | (5,491 | ) | |||||
Google, Inc. — Class A* | 20 | (6,153 | ) | |||||
Salesforce.com, Inc.* | 230 | (7,362 | ) | |||||
Adobe Systems, Inc.* | 350 | (7,451 | ) | |||||
Lam Research Corp.* | 371 | (7,895 | ) | |||||
Sohu.com, Inc.* | 170 | (8,048 | ) | |||||
Juniper Networks, Inc.* | 500 | (8,755 | ) | |||||
Total System Services, Inc. | 710 | (9,940 | ) | |||||
MasterCard, Inc. | 70 | (10,005 | ) | |||||
Teradyne, Inc.* | 2,550 | (10,761 | ) | |||||
Brocade Communications Systems, Inc.* | 4,110 | (11,508 | ) | |||||
Motorola, Inc. | 3,120 | (13,822 | ) | |||||
Akamai Technologies, Inc.* | 972 | (14,667 | ) | |||||
Mettler-Toledo International Inc.* | 220 | (14,828 | ) | |||||
NCR Corp.* | 1,162 | (16,431 | ) | |||||
Rambus, Inc.* | 1,080 | (17,194 | ) | |||||
Novell, Inc.* | 4,550 | (17,699 | ) | |||||
AVX Corp. | 2,350 | (18,659 | ) | |||||
Integrated Device Technology, | ||||||||
Inc.* | 3,430 | (19,242 | ) | |||||
Broadcom Corp. — Class A* | 1,160 | (19,685 | ) | |||||
Cree, Inc.* | 1,380 | (21,901 | ) | |||||
Tech Data Corp.* | 1,250 | (22,300 | ) | |||||
VeriSign, Inc.* | 1,220 | (23,278 | ) | |||||
International Rectifier Corp.* | 1,730 | (23,355 | ) | |||||
LSI Logic Corp.* | 7,160 | (23,556 | ) | |||||
Tyco Electronics Ltd. | 1,550 | (25,125 | ) | |||||
Dolby Laboratories, Inc. — Class A* | 810 | (26,536 | ) | |||||
Visa Inc. | 570 | (29,896 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Flir Systems, Inc.* | 1,040 | $ | (31,907 | ) | ||||
Electronic Arts, Inc.* | 2,050 | (32,882 | ) | |||||
IAC/InterActiveCorp* | 2,180 | (34,291 | ) | |||||
Paychex, Inc. | 1,320 | (34,690 | ) | |||||
Tellabs, Inc.* | 10,080 | (41,530 | ) | |||||
Hewitt Associates, Inc. — Class A* | 1,570 | (44,557 | ) | |||||
Altera Corp. | 3,670 | (61,326 | ) | |||||
Diebold, Inc. | 2,560 | (71,910 | ) | |||||
SAIC, Inc.* | 3,920 | (76,362 | ) | |||||
Atmel Corp.* | 26,920 | (84,296 | ) | |||||
Total Information Technology | (966,991 | ) | ||||||
INDUSTRIALS (3.2)% | ||||||||
KBR, Inc. | 1 | (15 | ) | |||||
Joy Global Inc. | 30 | (687 | ) | |||||
Ingersoll-Rand Company Ltd. — Class A | 150 | (2,602 | ) | |||||
Danaher Corp. | 50 | (2,830 | ) | |||||
Pall Corp. | 100 | (2,843 | ) | |||||
Masco Corp. | 530 | (5,899 | ) | |||||
Norfolk Southern Corp. | 160 | (7,528 | ) | |||||
Shaw Group Inc.* | 411 | (8,413 | ) | |||||
PACCAR Inc. | 300 | (8,580 | ) | |||||
Corporate Executive Board Co. | 420 | (9,265 | ) | |||||
AMETEK, Inc. | 310 | (9,365 | ) | |||||
USG Corp.* | 1,170 | (9,407 | ) | |||||
Monster Worldwide, Inc.* | 790 | (9,551 | ) | |||||
AGCO Corp.* | 410 | (9,672 | ) | |||||
Cummins Inc. | 450 | (12,029 | ) | |||||
Tyco International Ltd. | 560 | (12,096 | ) | |||||
Armstrong World Industries, Inc | 600 | (12,972 | ) | |||||
Donaldson Company, Inc. | 400 | (13,460 | ) | |||||
FTI Consulting, Inc.* | 310 | (13,851 | ) | |||||
Waste Management, Inc. | 420 | (13,919 | ) | |||||
CSX Corp. | 430 | (13,962 | ) | |||||
Rockwell Collins, Inc. | 360 | (14,072 | ) | |||||
Jacobs Engineering Group Inc.* | 300 | (14,430 | ) | |||||
First Solar, Inc.* | 130 | (17,935 | ) | |||||
SunPower Corp.* | 550 | (20,350 | ) | |||||
UTi Worldwide, Inc. | 1,680 | (24,091 | ) | |||||
Con-way Inc. | 930 | (24,738 | ) | |||||
Expeditors International of Washington, Inc. | 760 | (25,285 | ) | |||||
Fastenal Co. | 770 | (26,835 | ) | |||||
Avery Dennison Corp. | 910 | (29,784 | ) | |||||
FedEx Corp. | 510 | (32,717 | ) | |||||
Owens Corning, Inc.* | 2,130 | (36,849 | ) | |||||
CH Robinson Worldwide, Inc. | 850 | (46,776 | ) | |||||
Dun & Bradstreet Corp. | 680 | (52,496 | ) | |||||
Stericycle, Inc.* | 1,091 | (56,819 | ) | |||||
Landstar System, Inc. | 1,760 | (67,637 | ) | |||||
Pitney Bowes, Inc. | 3,390 | (86,377 | ) | |||||
United Parcel Service, Inc. — Class B | 2,480 | (136,797 | ) | |||||
Republic Services, Inc. | 6,844 | (169,663 | ) | |||||
Total Industrials | (1,062,597 | ) | ||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
FINANCIALS (8.3)% | ||||||||
Colonial BancGroup, Inc. | 840 | $ | (1,739 | ) | ||||
Northern Trust Corp. | 40 | (2,086 | ) | |||||
HRPT Properties Trust | 750 | (2,527 | ) | |||||
MSCI, Inc. — Class A* | 150 | (2,664 | ) | |||||
Unitrin, Inc. | 180 | (2,869 | ) | |||||
Kimco Realty Corp. | 190 | (3,473 | ) | |||||
Old Republic International Corp. | 350 | (4,172 | ) | |||||
BRE Properties, Inc. | 150 | (4,197 | ) | |||||
Health Care REIT, Inc. | 110 | (4,642 | ) | |||||
Kilroy Realty Corp. | 140 | (4,684 | ) | |||||
Nasdaq OMX Group, Inc.* | 190 | (4,695 | ) | |||||
Zions Bancorporation | 200 | (4,902 | ) | |||||
Forest City Enterprises, Inc. — Class A | 870 | (5,829 | ) | |||||
E*Trade Financial Corp.* | 6,110 | (7,026 | ) | |||||
KeyCorp | 890 | (7,583 | ) | |||||
Leucadia National Corp.* | 400 | (7,920 | ) | |||||
UDR, Inc. | 590 | (8,136 | ) | |||||
T. Rowe Price Group, Inc. | 230 | (8,151 | ) | |||||
Citigroup, Inc. | 1,250 | (8,387 | ) | |||||
MF Global Ltd.* | 4,380 | (8,935 | ) | |||||
U.S. Bancorp | 360 | (9,004 | ) | |||||
First Citizens BancShares, Inc. — Class A | 60 | (9,168 | ) | |||||
Allied Capital Corp. | 3,510 | (9,442 | ) | |||||
Brandywine Realty Trust | 1,280 | (9,869 | ) | |||||
Public Storage | 130 | (10,335 | ) | |||||
Moody’s Corp. | 520 | (10,447 | ) | |||||
Student Loan Corp. | 260 | (10,660 | ) | |||||
Morgan Stanley | 690 | (11,068 | ) | |||||
Regency Centers Corp. | 250 | (11,675 | ) | |||||
Eaton Vance Corp. | 591 | (12,417 | ) | |||||
Endurance Specialty Holdings Ltd. | 410 | (12,517 | ) | |||||
Equity Residential | 480 | (14,314 | ) | |||||
First Horizon National Corp. | 1,410 | (14,905 | ) | |||||
Conseco, Inc.* | 3,010 | (15,592 | ) | |||||
Popular, Inc. | 3,040 | (15,686 | ) | |||||
Cullen/Frost Bankers, Inc. | 310 | (15,711 | ) | |||||
Camden Property Trust | 520 | (16,297 | ) | |||||
Fifth Third Bancorp | 2,110 | (17,429 | ) | |||||
St Joe Co.* | 720 | (17,510 | ) | |||||
Huntington Bancshares, Inc. | 2,540 | (19,456 | ) | |||||
Essex Property Trust, Inc. | 260 | (19,955 | ) | |||||
Simon Property Group, Inc. | 380 | (20,189 | ) | |||||
Capitol Federal Financial | 450 | (20,520 | ) | |||||
Synovus Financial Corp. | 2,530 | (20,999 | ) | |||||
SLM Corp.* | 2,380 | (21,182 | ) | |||||
Franklin Resources, Inc. | 350 | (22,323 | ) | |||||
Ventas, Inc. | 680 | (22,828 | ) | |||||
First American Corp. | 860 | (24,845 | ) | |||||
Plum Creek Timber Company, Inc. | 750 | (26,055 | ) | |||||
Brown & Brown, Inc. | 1,270 | (26,543 | ) | |||||
New York Community Bancorp, Inc. | 2,370 | (28,345 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Fidelity National Financial, Inc — Class A | 1,700 | $ | (30,175 | ) | ||||
Federal Realty Investment Trust | 600 | (37,248 | ) | |||||
Hudson City Bancorp, Inc. | 2,960 | (47,242 | ) | |||||
Lazard Ltd. — Class A | 1,640 | (48,774 | ) | |||||
Digital Realty Trust, Inc. | 1,700 | (55,845 | ) | |||||
Marsh & McLennan Companies, Inc. | 4,980 | (120,865 | ) | |||||
TFS Financial Corp. | 9,631 | (124,240 | ) | |||||
M&T Bank Corp. | 2,810 | (161,322 | ) | |||||
Tower Group, Inc. | 6,420 | (181,108 | ) | |||||
Wells Fargo & Co. | 10,300 | (303,644 | ) | |||||
Bank of America Corp. | 21,659 | (304,959 | ) | |||||
PNC Financial Services Group, Inc. | 6,650 | (325,850 | ) | |||||
Banco Santander CEN-SPON ADR | 39,169 | (371,732 | ) | |||||
Total Financials | (2,734,907 | ) | ||||||
Total Common Stocks Sold Short | ||||||||
(Proceeds $8,778,328) | (8,383,871 | ) | ||||||
CONTRACTS | ||||||||
OPTIONS WRITTEN (0.6)% | ||||||||
Call Options On: | ||||||||
Constellation Energy Group Expiring January 2009 with strike price of 25 | 70 | (7,000 | ) | |||||
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 880 | 20 | (200,000 | ) | |||||
Total Options Written | ||||||||
(Premiums Received $218,571) | (207,000 | ) | ||||||
Other Assets in Excess of Other Liabilities – 52.8% | $ | 17,427,388 | ||||||
Net Assets – 100.0% | $ | 33,021,694 | ||||||
Unrealized | ||||||||
Contracts | Gain (Loss) | |||||||
CURRENCY FUTURES CONTRACTS | ||||||||
PURCHASED | ||||||||
March 2009 Australian Dollar Futures Contracts (Aggregate Market Value of Contracts $494,620) | 7 | $ | 36,068 | |||||
March 2009 New Zealand Dollar Futures Contracts (Aggregate Market Value of Contracts $409,080) | 7 | 34,318 | ||||||
March 2009 British Pound Futures Contracts (Aggregate Market Value of Contracts $364,225) | 4 | (4,210 | ) | |||||
(Total Aggregate Market Value of Contracts $1,267,925) | $ | 66,176 | ||||||
32 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
ABSOLUTE RETURN STRATEGIES FUND
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $5,087,825) | 113 | $ | 84,905 | |||||
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,816,620) | 34 | 74,802 | ||||||
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $2,612,900) | 53 | 68,442 | ||||||
March 2009 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Market Value of Contracts $965,475) | 21 | 62,537 | ||||||
March 2009 Dow Jones STOXX 50 Futures Contracts (Aggregate Market Value of Contracts $1,326,985) | 45 | 56,217 | ||||||
(Total Aggregate Market Value of Contracts $11,809,805) | $ | 346,903 | ||||||
CURRENCY FUTURES CONTRACTS | ||||||||
SOLD SHORT | ||||||||
March 2009 U.S. Dollar Index Futures Contracts (Aggregate Market Value of Contracts $6,982,750) | 85 | $ | 297,781 | |||||
March 2009 Japanese Yen Futures Contracts (Aggregate Market Value of Contracts $552,050) | 4 | (7,310 | ) | |||||
March 2009 Canadian Dollar Futures Contracts (Aggregate Market Value of Contracts $492,840) | 6 | (17,955 | ) | |||||
March 2009 Swiss Franc Futures Contracts (Aggregate Market Value of Contracts $469,750) | 4 | (53,311 | ) | |||||
(Total Aggregate Market Value of Contracts $8,497,390) | $ | 219,205 | ||||||
UNREALIZED | ||||||||
CONTRACTS | LOSS | |||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 Dow Jones Euro STOXX 50 Index Futures Contracts (Aggregate Market Value of Contracts $352,298) | 10 | $ | (30,355 | ) | ||||
* | Non-Income Producing Security. | |
† | Repurchase Agreements — See Note 6. | |
All or a portion of this security is pledged as short security § collateral at December 31, 2008. | ||
ADR — American Depository Receipt. | ||
REIT — Real Estate Investment Trust. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 33 |
SCHEDULE OF INVESTMENTS
December 31, 2008
ALTERNATIVE STRATEGIES ALLOCATION FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
MUTUAL FUNDS† 76.3% | ||||||||
Rydex Series Funds – Managed Futures Strategy Fund — Class H | 54,784 | $ | 1,533,943 | |||||
Rydex Variable Trust – Commodities Strategy Fund | 29,370 | 336,877 | ||||||
Rydex Variable Trust — Absolute Return Strategies Fund | 14,339 | 300,691 | ||||||
Rydex Variable Trust — Real Estate Fund | 12,766 | 223,526 | ||||||
Total Mutual Funds | ||||||||
(Cost $2,944,719) | 2,395,037 | |||||||
CURRENCY EXCHANGE TRADED | ||||||||
FUNDS 12.5% | ||||||||
PowerShares DB G10 Currency Harvest Fund* | 20,150 | 391,313 | ||||||
Total Currency Exchange Traded Funds | ||||||||
(Cost $540,613) | 391,313 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT†† 11.1% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 347,233 | 347,233 | |||||
Total Repurchase Agreement | ||||||||
(Cost $347,233) | 347,233 | |||||||
Total Investments 99.9% | ||||||||
(Cost $3,832,565) | $ | 3,133,583 | ||||||
Other Assets in Excess of Liabilities – 0.1% | $ | 4,024 | ||||||
Net Assets – 100.0% | $ | 3,137,607 |
* | Non-Income Producing Security. | |
† | Affiliated Funds | |
†† | Repurchase Agreements — See Note 6. |
34 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
COMMODITIES STRATEGY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
EXCHANGE TRADED FUNDS 16.9% | ||||||||
iShares S&P GSCI Commodity Indexed Trust* | 93,000 | $ | 2,660,730 | |||||
Total Exchange Traded Funds | ||||||||
(Cost $2,724,854) | 2,660,730 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
STRUCTURED NOTES†† 24.7% | ||||||||
Credit Suisse Securities (USA) LLC, S&P GSCI Total Return Linked Notes at 1.33% due 12/16/09 | $ | 3,009,900 | 2,681,851 | |||||
Swedish Export Credit Corp., S&P GSCI Total Return Linked Notes at 1.83% due 12/21/09 | 1,000,000 | 1,210,080 | ||||||
Total Structured Notes | ||||||||
(Cost $4,009,900) | 3,891,931 | |||||||
FEDERAL AGENCY DISCOUNT NOTES 19.0% | ||||||||
Federal Farm Credit Bank** 0.25% due 01/02/09 | 2,000,000 | 2,000,000 | ||||||
Farmer Mac** 0.07% due 01/07/09 | 500,000 | 499,995 | ||||||
Freddie Mac*** 0.05% due 01/29/09 | 500,000 | 499,981 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $2,999,976) | 2,999,976 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENTS† 41.3% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 1,670,909 | $ | 1,670,909 | ||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,670,909 | 1,670,909 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 1,670,909 | 1,670,909 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,508,118 | 1,508,118 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $6,520,845) | 6,520,845 | |||||||
Total Investments 101.9% | ||||||||
(Cost $16,255,575) | $ | 16,073,482 | ||||||
Liabilities in Excess of Other Assets – (1.9)% | $ | (292,165 | ) | |||||
Net Assets – 100.0% | $ | 15,781,317 |
* | Non-Income Producing Security. | |
** | 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. | |
*** | On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. | |
† | Repurchase Agreements — See Note 6. | |
†† | Structured Notes are leveraged, providing a market exposure to the underlying benchmark greater than the face amount. The total exposure to the Benchmark is $11,911,731 as of December 31, 2008 — See Note 2. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 35 |
SCHEDULE OF INVESTMENTS
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 24.4% | ||||||||
FINANCIALS 4.3% | ||||||||
Travelers Companies, Inc. | 910 | $ | 41,132 | |||||
Aon Corp. | 880 | 40,198 | ||||||
Hanover Insurance Group, Inc. | 820 | 35,235 | ||||||
Annaly Capital Management, Inc. | 1,950 | 30,946 | ||||||
Transatlantic Holdings, Inc. | 620 | 24,837 | ||||||
MetLife, Inc. | 650 | 22,659 | ||||||
Arthur J. Gallagher & Co. | 860 | 22,283 | ||||||
Allied World Assurance Company Holdings Ltd | 530 | 21,518 | ||||||
Chubb Corp. | 400 | 20,400 | ||||||
JPMorgan Chase & Co. | 640 | 20,179 | ||||||
ACE Ltd.§ | 330 | 17,464 | ||||||
Nationwide Health Properties, Inc. | 600 | 17,232 | ||||||
Allstate Corp. | 430 | 14,087 | ||||||
Axis Capital Holdings Ltd. | 440 | 12,813 | ||||||
W.R. Berkley Corp. | 390 | 12,090 | ||||||
Ameriprise Financial, Inc. | 500 | 11,680 | ||||||
PartnerRe Ltd. | 150 | 10,690 | ||||||
Unum Group | 550 | 10,230 | ||||||
Capital One Financial Corp. | 310 | 9,886 | ||||||
ProLogis | 700 | 9,723 | ||||||
Charles Schwab Corp. | 600 | 9,702 | ||||||
Goldman Sachs Group, Inc. | 110 | 9,283 | ||||||
Invesco Ltd. | 640 | 9,242 | ||||||
HCP, Inc. | 310 | 8,609 | ||||||
Everest Re Group Ltd. | 110 | 8,375 | ||||||
Valley National Bancorp | 410 | 8,302 | ||||||
Cincinnati Financial Corp. | 270 | 7,849 | ||||||
NYSE Euronext | 260 | 7,119 | ||||||
Genpact Ltd.* | 800 | 6,576 | ||||||
Federated Investors, Inc. — Class B | 380 | 6,445 | ||||||
People’s United Financial, Inc. | 350 | 6,240 | ||||||
Jones Lang LaSalle, Inc.§ | 220 | 6,094 | ||||||
Prudential Financial, Inc. | 190 | 5,749 | ||||||
Alleghany Corp.* | 20 | 5,640 | ||||||
Blackrock, Inc. | 40 | 5,366 | ||||||
AFLAC, Inc. | 110 | 5,042 | ||||||
American Financial Group, Inc. | 220 | 5,034 | ||||||
Waddell & Reed Financial, Inc. — Class A | 320 | 4,947 | ||||||
CB Richard Ellis Group, Inc. — Class A* | 1,100 | 4,752 | ||||||
State Street Corp. | 120 | 4,720 | ||||||
Host Hotels & Resorts, Inc. | 600 | 4,542 | ||||||
Macerich Co. | 210 | 3,814 | ||||||
Janus Capital Group, Inc. | 450 | 3,613 | ||||||
Webster Financial Corp. | 250 | 3,445 | ||||||
Protective Life Corp. | 230 | 3,300 | ||||||
Assurant, Inc. | 110 | 3,300 | ||||||
Comerica, Inc. | 150 | 2,978 | ||||||
Stancorp Financial Group, Inc. | 70 | 2,924 | ||||||
Hospitality Properties Trust | 190 | 2,825 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Hartford Financial Services Group, Inc. | 170 | $ | 2,791 | |||||
Principal Financial Group, Inc. | 110 | 2,483 | ||||||
IntercontinentalExchange, Inc.* | 30 | 2,473 | ||||||
American Capital Ltd. | 710 | 2,300 | ||||||
Lincoln National Corp. | 110 | 2,072 | ||||||
Loews Corp. | 70 | 1,978 | ||||||
Genworth Financial, Inc. — Class A | 670 | 1,896 | ||||||
AmeriCredit Corp.* | 210 | 1,604 | ||||||
CNA Financial Corp. | 90 | 1,480 | ||||||
Bank of New York Mellon Corp. | 50 | 1,417 | ||||||
Investment Technology Group, Inc.* | 60 | 1,363 | ||||||
SL Green Realty Corp. | 50 | 1,295 | ||||||
iStar Financial Inc. | 550 | 1,227 | ||||||
SunTrust Banks, Inc. | 40 | 1,182 | ||||||
CBL & Associates Properties, Inc. | 180 | 1,170 | ||||||
Boston Properties, Inc. | 20 | 1,100 | ||||||
First Marblehead Corp.* | 770 | 993 | ||||||
American International Group, Inc. | 610 | 958 | ||||||
Discover Financial Services | 90 | 858 | ||||||
General Growth Properties, Inc. | 660 | 851 | ||||||
Developers Diversified Realty Corp. | 170 | 830 | ||||||
Regions Financial Corp. | 100 | 796 | ||||||
American National Insurance Co. | 10 | 737 | ||||||
Arch Capital Group Ltd.* | 10 | 701 | ||||||
Aircastle Ltd. | 140 | 669 | ||||||
Ambac Financial Group, Inc. | 360 | 468 | ||||||
Guaranty Financial Group, Inc.* | 150 | 392 | ||||||
CIT Group, Inc. | 70 | 318 | ||||||
BB&T Corp. | 10 | 275 | ||||||
The PMI Group, Inc. | 140 | 273 | ||||||
Total Financials | 608,059 | |||||||
HEALTH CARE 3.8% | ||||||||
Perrigo Co.§ | 1,110 | 35,864 | ||||||
C.R. Bard, Inc.§ | 410 | 34,546 | ||||||
King Pharmaceuticals, Inc.*§ | 3,087 | 32,784 | ||||||
LifePoint Hospitals, Inc.*§ | 1,290 | 29,464 | ||||||
Hill-Rom Holdings, Inc.§ | 1,680 | 27,653 | ||||||
Baxter International, Inc.§ | 410 | 21,972 | ||||||
AmerisourceBergen Corp.§ | 600 | 21,396 | ||||||
WellPoint, Inc.*§ | 490 | 20,644 | ||||||
Lincare Holdings, Inc.*§ | 751 | 20,224 | ||||||
Thermo Fisher Scientific, Inc.*§ | 560 | 19,079 | ||||||
Universal Health Services, Inc. — Class B§ | 490 | 18,409 | ||||||
Celgene Corp.*§ | 314 | 17,358 | ||||||
Amgen, Inc.* | 300 | 17,325 | ||||||
Cardinal Health, Inc.§ | 420 | 14,477 | ||||||
Biogen Idec, Inc.*§ | 290 | 13,813 | ||||||
Forest Laboratories, Inc.*§ | 540 | 13,754 | ||||||
ResMed, Inc.*§ | 360 | 13,493 | ||||||
Millipore Corp.*§ | 230 | 11,850 | ||||||
Charles River Laboratories International, Inc.*§ | 440 | 11,528 |
36 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Vertex Pharmaceuticals, Inc.*§ | 360 | $ | 10,937 | |||||
UnitedHealth Group, Inc. | 372 | 9,895 | ||||||
Pfizer, Inc.§ | 490 | 8,678 | ||||||
DENTSPLY International, Inc.§ | 300 | 8,472 | ||||||
Abraxis BioScience, Inc.*§ | 103 | 6,790 | ||||||
Beckman Coulter, Inc.§ | 150 | 6,591 | ||||||
Aetna, Inc. | 220 | 6,270 | ||||||
Johnson & Johnson, Inc.§ | 100 | 5,983 | ||||||
Humana, Inc.* | 160 | 5,965 | ||||||
Zimmer Holdings, Inc.*§ | 130 | 5,255 | ||||||
Novartis AG — SP ADR§ | 100 | 4,976 | ||||||
Health Net, Inc.* | 440 | 4,792 | ||||||
Wyeth§ | 120 | 4,501 | ||||||
GlaxoSmithKline PLC — SP ADR§ | 120 | 4,472 | ||||||
Abbott Laboratories§ | 80 | 4,270 | ||||||
Sanofi-Aventis — SP ADR§ | 130 | 4,181 | ||||||
Quest Diagnostics, Inc.§ | 80 | 4,153 | ||||||
Myriad Genetics, Inc.*§ | 60 | 3,976 | ||||||
Endo Pharmaceuticals Holdings, Inc.*§ | 150 | 3,882 | ||||||
McKesson Corp. | 100 | 3,873 | ||||||
Alexion Pharmaceuticals, Inc.*§ | 100 | 3,619 | ||||||
Onyx Pharmaceuticals, Inc.*§ | 100 | 3,416 | ||||||
AstraZeneca PLC — SP ADR§ | 80 | 3,282 | ||||||
Kinetic Concepts, Inc.* | 170 | 3,261 | ||||||
OSI Pharmaceuticals, Inc.*§ | 80 | 3,124 | ||||||
Bristol-Myers Squibb Co.§ | 130 | 3,022 | ||||||
Medco Health Solutions, Inc.*§ | 70 | 2,934 | ||||||
CIGNA Corp. | 170 | 2,864 | ||||||
Coventry Health Care, Inc.* | 190 | 2,827 | ||||||
Warner Chilcott Ltd.*§ | 180 | 2,610 | ||||||
Teva Pharmaceutical Industries Ltd. — SP ADR§ | 60 | 2,554 | ||||||
Intuitive Surgical, Inc.*§ | 20 | 2,540 | ||||||
Community Health Systems, Inc.*§ | 130 | 1,895 | ||||||
Inverness Medical Innovations, Inc.* | 100 | 1,891 | ||||||
United Therapeutics Corp.*§ | 30 | 1,876 | ||||||
Pediatrix Medical Group, Inc.* | 50 | 1,585 | ||||||
Shire PLC — SP ADR§ | 30 | 1,343 | ||||||
Covance, Inc.*§ | 20 | 921 | ||||||
Eli Lilly & Co. | 20 | 805 | ||||||
Total Health Care | 559,914 | |||||||
CONSUMER DISCRETIONARY 3.1% | ||||||||
DreamWorks Animation SKG, Inc. — Class A*§ | 1,543 | 38,976 | ||||||
Hasbro, Inc.§ | 980 | 28,587 | ||||||
DIRECTV Group, Inc.*§ | 1,120 | 25,659 | ||||||
HSN, Inc.*§ | 2,800 | 20,356 | ||||||
DeVry, Inc.§ | 330 | 18,945 | ||||||
Burger King Holdings, Inc.§ | 730 | 17,432 | ||||||
Regal Entertainment Group — Class A§ | 1,620 | 16,540 | ||||||
Comcast Corp. — Class A§ | 860 | 14,517 | ||||||
Time Warner, Inc.§ | 1,150 | 11,569 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Weight Watchers International, Inc.§ | 390 | $ | 11,474 | |||||
Service Corporation International§ | 2,000 | 9,940 | ||||||
Mohawk Industries, Inc.*§ | 220 | 9,453 | ||||||
RadioShack Corp.§ | 777 | 9,277 | ||||||
John Wiley & Sons, Inc. — Class A§ | 250 | 8,895 | ||||||
Carnival Corp.§ | 340 | 8,269 | ||||||
Liberty Media Corp — Capital* | 1,680 | 7,913 | ||||||
VF Corp.§ | 140 | 7,668 | ||||||
The Gap, Inc.§ | 560 | 7,498 | ||||||
Tiffany & Co.§ | 300 | 7,089 | ||||||
Liberty Global, Inc. — Class A*§ | 400 | 6,368 | ||||||
Interval Leisure Group, Inc.*§ | 1,180 | 6,360 | ||||||
Ticketmaster Entertainment, Inc.*§ | 890 | 5,714 | ||||||
Amazon.com, Inc.*§ | 110 | 5,641 | ||||||
AutoZone, Inc.*§ | 40 | 5,579 | ||||||
Corinthian Colleges, Inc.*§ | 340 | 5,566 | ||||||
Dick’s Sporting Goods, Inc.*§ | 390 | 5,503 | ||||||
BorgWarner, Inc.§ | 240 | 5,225 | ||||||
TJX Companies, Inc.§ | 240 | 4,937 | ||||||
Hillenbrand, Inc.§ | 290 | 4,837 | ||||||
Royal Caribbean Cruises Ltd. | 350 | 4,812 | ||||||
Matthews International Corp. — Class A§ | 130 | 4,768 | ||||||
Capella Education Co.*§ | 80 | 4,701 | ||||||
Big Lots, Inc.*§ | 320 | 4,637 | ||||||
Whirlpool Corp.§ | 110 | 4,548 | ||||||
Autoliv, Inc.§ | 210 | 4,507 | ||||||
Centex Corp.§ | 420 | 4,469 | ||||||
Penske Auto Group, Inc.§ | 570 | 4,378 | ||||||
Expedia, Inc.*§ | 500 | 4,120 | ||||||
Barnes & Noble, Inc.§ | 260 | 3,900 | ||||||
ITT Educational Services, Inc.*§ | 40 | 3,799 | ||||||
J.C. Penney Company, Inc.§ | 190 | 3,743 | ||||||
American Public Education, Inc.*§ | 100 | 3,719 | ||||||
Sotheby’s§ | 390 | 3,467 | ||||||
K12 Inc.*§ | 180 | 3,375 | ||||||
Petsmart, Inc.§ | 180 | 3,321 | ||||||
Foot Locker, Inc.§ | 450 | 3,303 | ||||||
Ross Stores, Inc.§ | 110 | 3,270 | ||||||
Apollo Group, Inc. — Class A*§ | 40 | 3,065 | ||||||
Central European Media Enterprises Ltd. — Class A*§ | 140 | 3,041 | ||||||
CBS Corp. | 340 | 2,785 | ||||||
D.R. Horton, Inc. | 350 | 2,474 | ||||||
CTC Media, Inc.*§ | 500 | 2,400 | ||||||
Snap-On, Inc.§ | 60 | 2,363 | ||||||
Career Education Corp.* | 130 | 2,332 | ||||||
TRW Automotive Holdings Corp.* | 590 | 2,124 | ||||||
Discovery Communications, Inc. — Class A*§ | 150 | 2,124 | ||||||
Gannett Co., Inc. | 250 | 2,000 | ||||||
Garmin Ltd. | 100 | 1,917 | ||||||
AnnTaylor Stores Corp.* | 240 | 1,385 | ||||||
OfficeMax Inc. | 180 | 1,375 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 37 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Family Dollar Stores, Inc.§ | 50 | $ | 1,303 | |||||
GameStop Corp. — Class A*§ | 60 | 1,300 | ||||||
Phillips-Van Heusen Corp.§ | 60 | 1,208 | ||||||
Abercrombie & Fitch Co. — Class A | 50 | 1,153 | ||||||
Liberty Media Corp — Interactive* | 280 | 874 | ||||||
Sears Holdings Corp.* | 20 | 777 | ||||||
Urban Outfitters, Inc.*§ | 50 | 749 | ||||||
priceline.com, Inc.* | 10 | 736 | ||||||
Meredith Corp. | 40 | 685 | ||||||
KB HOME | 50 | 681 | ||||||
O’Reilly Automotive, Inc.*§ | 20 | 615 | ||||||
Guess?, Inc.§ | 40 | 614 | ||||||
Sherwin-Williams Co.§ | 10 | 598 | ||||||
Clear Channel Outdoor Holdings, Inc. — Class A* | 90 | 554 | ||||||
Williams-Sonoma, Inc. | 70 | 550 | ||||||
RH Donnelley Corp.* | 1,000 | 370 | ||||||
News Corp. — Class A§ | 40 | 364 | ||||||
M.D.C. Holdings, Inc. | 10 | 303 | ||||||
Total Consumer Discretionary | 451,443 | |||||||
UTILITIES 2.6% | ||||||||
Pepco Holdings, Inc.§ | 2,410 | 42,802 | ||||||
American Water Works Company, Inc.§ | 1,600 | 33,408 | ||||||
UGI Corp.§ | 1,360 | 33,211 | ||||||
DPL, Inc.§ | 1,310 | 29,920 | ||||||
Pinnacle West Capital Corp. | 780 | 25,061 | ||||||
DTE Energy Co.§ | 590 | 21,045 | ||||||
Great Plains Energy, Inc.§ | 880 | 17,010 | ||||||
Atmos Energy Corp. | 640 | 15,168 | ||||||
Alliant Energy Corp. | 470 | 13,715 | ||||||
PG&E Corp.§ | 341 | 13,200 | ||||||
TECO Energy, Inc.§ | 1,050 | 12,968 | ||||||
National Fuel Gas Co.§ | 380 | 11,905 | ||||||
NV Energy, Inc. | 980 | 9,692 | ||||||
Questar Corp.§ | 290 | 9,480 | ||||||
Edison International | 270 | 8,672 | ||||||
AES Corp.* | 1,050 | 8,652 | ||||||
Oneok, Inc.§ | 270 | 7,862 | ||||||
SCANA Corp.§ | 220 | 7,832 | ||||||
Energen Corp.§ | 220 | 6,453 | ||||||
Mirant Corp.* | 310 | 5,850 | ||||||
Dominion Resources, Inc.§ | 160 | 5,734 | ||||||
PPL Corp.§ | 180 | 5,524 | ||||||
Public Service Enterprise Group, Inc.§ | 150 | 4,376 | ||||||
AGL Resources, Inc.§ | 130 | 4,076 | ||||||
NSTAR§ | 110 | 4,014 | ||||||
Sempra Energy§ | 90 | 3,837 | ||||||
Piedmont Natural Gas Co.§ | 120 | 3,800 | ||||||
New Jersey Resources Corp.§ | 90 | 3,542 | ||||||
WGL Holdings, Inc.§ | 100 | 3,269 | ||||||
Nicor, Inc.§ | 80 | 2,779 | ||||||
Northwest Natural Gas Co.§ | 60 | 2,654 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Wisconsin Energy Corp.§ | 60 | $ | 2,519 | |||||
Laclede Group, Inc.§ | 50 | 2,342 | ||||||
Integrys Energy Group, Inc.§ | 50 | 2,149 | ||||||
Total Utilities | 384,521 | |||||||
INDUSTRIALS 2.5% | ||||||||
Iron Mountain, Inc.* | 1,702 | 42,090 | ||||||
Brink’s Co.§ | 1,440 | 38,707 | ||||||
Ryder System, Inc.§ | 420 | 16,288 | ||||||
Southwest Airlines Co. | 1,744 | 15,033 | ||||||
Alliant Techsystems, Inc.*§ | 150 | 12,864 | ||||||
Trinity Industries, Inc.§ | 630 | 9,929 | ||||||
Hubbell, Inc. — Class B§ | 300 | 9,804 | ||||||
Delta Air Lines, Inc.* | 800 | 9,168 | ||||||
Burlington Northern Santa Fe Corp.§ | 120 | 9,085 | ||||||
Flowserve Corp.§ | 170 | 8,755 | ||||||
Continental Airlines, Inc. — Class B* | 460 | 8,308 | ||||||
Timken Co.§ | 400 | 7,852 | ||||||
Valmont Industries, Inc.§ | 120 | 7,363 | ||||||
SPX Corp.§ | 180 | 7,299 | ||||||
Copart, Inc.*§ | 250 | 6,797 | ||||||
Northrop Grumman Corp.§ | 150 | 6,756 | ||||||
Norfolk Southern Corp.§ | 130 | 6,116 | ||||||
AMR Corp.* | 560 | 5,975 | ||||||
Carlisle Companies, Inc.§ | 270 | 5,589 | ||||||
GATX Corp.§ | 180 | 5,575 | ||||||
UAL Corp.§ | 470 | 5,179 | ||||||
United Rentals, Inc.* | 540 | 4,925 | ||||||
Union Pacific Corp.§ | 100 | 4,780 | ||||||
W.W. Grainger, Inc.§ | 60 | 4,730 | ||||||
McDermott International, Inc.*§ | 470 | 4,644 | ||||||
Deere & Co.§ | 120 | 4,598 | ||||||
Manitowoc Co., Inc.§ | 530 | 4,590 | ||||||
JetBlue Airways Corp.* | 630 | 4,473 | ||||||
Steelcase, Inc. — Class A§ | 770 | 4,327 | ||||||
WESCO International, Inc.* | 210 | 4,038 | ||||||
Gardner Denver, Inc.*§ | 170 | 3,968 | ||||||
J.B. Hunt Transport Services, Inc.§ | 150 | 3,940 | ||||||
Thomas & Betts Corporation* | 160 | 3,843 | ||||||
Republic Services, Inc.§ | 150 | 3,718 | ||||||
Bucyrus International, Inc.§ | 200 | 3,704 | ||||||
Copa Holdings SA§ | 120 | 3,638 | ||||||
US Airways Group, Inc.* | 470 | 3,633 | ||||||
Fluor Corp.§ | 80 | 3,590 | ||||||
Eaton Corp.§ | 70 | 3,480 | ||||||
SkyWest, Inc. | 180 | 3,348 | ||||||
Waste Management, Inc.§ | 100 | 3,314 | ||||||
Kansas City Southern*§ | 170 | 3,239 | ||||||
Alaska Air Group, Inc.* | 110 | 3,218 | ||||||
Quanta Services, Inc.*§ | 160 | 3,168 | ||||||
Allegiant Travel Co.* | 60 | 2,914 | ||||||
General Cable Corp.* | 160 | 2,830 | ||||||
Hertz Global Holdings, Inc.* | 540 | 2,738 | ||||||
Manpower, Inc.§ | 80 | 2,719 |
38 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
CSX Corp.§ | 80 | $ | 2,598 | |||||
Terex Corp.* | 140 | 2,425 | ||||||
Precision Castparts Corp.§ | 40 | 2,379 | ||||||
AirTran Holdings, Inc.* | 500 | 2,220 | ||||||
MSC Industrial Direct Co.§ | 50 | 1,842 | ||||||
Caterpillar, Inc.§ | 40 | 1,787 | ||||||
Covanta Holding Corp.*§ | 80 | 1,757 | ||||||
Pentair, Inc.§ | 60 | 1,420 | ||||||
Lennox International, Inc. | 40 | 1,292 | ||||||
Avis Budget Group, Inc.* | 1,410 | 987 | ||||||
Foster Wheeler Ltd.*§ | 40 | 935 | ||||||
Joy Global, Inc.§ | 40 | 916 | ||||||
Boeing Co. | 20 | 853 | ||||||
Kennametal, Inc.§ | 30 | 666 | ||||||
URS Corp.* | 10 | 408 | ||||||
KBR, Inc.§ | 20 | 304 | ||||||
Kirby Corp.* | 10 | 274 | ||||||
Oshkosh Corp. | 20 | 178 | ||||||
Textron, Inc. | 10 | 139 | ||||||
Total Industrials | 370,019 | |||||||
CONSUMER STAPLES 2.5% | ||||||||
BJ’s Wholesale Club, Inc.*§ | 1,010 | 34,603 | ||||||
Alberto-Culver Co. | 1,110 | 27,206 | ||||||
Procter & Gamble Co.§ | 410 | 25,346 | ||||||
Wal-Mart Stores, Inc.§ | 310 | 17,379 | ||||||
Herbalife Ltd.§ | 800 | 17,344 | ||||||
PepsiAmericas, Inc.§ | 800 | 16,288 | ||||||
General Mills, Inc.§ | 260 | 15,795 | ||||||
Del Monte Foods Co. | 2,090 | 14,923 | ||||||
Dr Pepper Snapple Group, Inc.*§ | 910 | 14,787 | ||||||
Costco Wholesale Corp.§ | 270 | 14,175 | ||||||
Church & Dwight Co., Inc.§ | 240 | 13,469 | ||||||
Unilever NV§ | 450 | 11,047 | ||||||
Kraft Foods, Inc.§ | 380 | 10,203 | ||||||
Pepsi Bottling Group, Inc.§ | 440 | 9,904 | ||||||
NBTY, Inc.*§ | 620 | 9,703 | ||||||
Safeway, Inc. | 400 | 9,508 | ||||||
Bunge Ltd.§ | 180 | 9,319 | ||||||
Molson Coors Brewing Co. — Class B§ | 190 | 9,295 | ||||||
CVS Caremark Corp.§ | 320 | 9,197 | ||||||
Reynolds American, Inc.§ | 220 | 8,868 | ||||||
SUPERVALU, INC. | 580 | 8,468 | ||||||
Kimberly-Clark Corp.§ | 160 | 8,438 | ||||||
Altria Group, Inc.§ | 503 | 7,575 | ||||||
Kroger Co.§ | 190 | 5,018 | ||||||
Kellogg Co.§ | 100 | 4,385 | ||||||
Coca-Cola Enterprises, Inc. | 350 | 4,210 | ||||||
Bare Escentuals, Inc.* | 710 | 3,713 | ||||||
Sysco Corp.§ | 160 | 3,670 | ||||||
Cadbury PLC — SP ADR§ | 90 | 3,210 | ||||||
Hansen Natural Corp.*§ | 90 | 3,018 | ||||||
H.J. Heinz Co.§ | 80 | 3,008 | ||||||
Corn Products International, Inc.§ | 90 | 2,597 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Clorox Co.§ | 40 | $ | 2,222 | |||||
Archer-Daniels-Midland Co.§ | 70 | 2,018 | ||||||
Ruddick Corp.§ | 50 | 1,383 | ||||||
Casey’s General Stores, Inc.§ | 50 | 1,139 | ||||||
WD-40 Co.§ | 40 | 1,132 | ||||||
Winn-Dixie Stores, Inc.*§ | 70 | 1,127 | ||||||
McCormick & Co., Inc.§ | 30 | 956 | ||||||
United Natural Foods, Inc.*§ | 50 | 891 | ||||||
Whole Foods Market, Inc. | 60 | 566 | ||||||
Total Consumer Staples | 367,103 | |||||||
INFORMATION TECHNOLOGY 2.2% | ||||||||
Synopsys, Inc.*§ | 1,600 | 29,632 | ||||||
BMC Software, Inc.*§ | 670 | 18,030 | ||||||
Applied Materials, Inc.§ | 1,380 | 13,979 | ||||||
Cypress Semiconductor Corp.*§ | 3,010 | 13,455 | ||||||
Affiliated Computer Services, Inc. — Class A*§ | 290 | 13,325 | ||||||
Computer Sciences Corp.*§ | 350 | 12,299 | ||||||
Western Digital Corp.*§ | 920 | 10,534 | ||||||
EMC Corp*§ | 1,000 | 10,470 | ||||||
Hewlett-Packard Co.§ | 280 | 10,161 | ||||||
Ingram Micro, Inc. — Class A*§ | 700 | 9,373 | ||||||
Jabil Circuit, Inc. | 1,340 | 9,045 | ||||||
WebMD Health Corp.*§ | 370 | 8,728 | ||||||
Zebra Technologies Corp. — Class A*§ | 420 | 8,509 | ||||||
Arrow Electronics, Inc.*§ | 440 | 8,289 | ||||||
National Instruments Corp.§ | 330 | 8,039 | ||||||
Avnet, Inc.*§ | 420 | 7,648 | ||||||
QLogic Corp.*§ | 550 | 7,392 | ||||||
Activision Blizzard Inc.*§ | 830 | 7,171 | ||||||
Fidelity National Information Services, Inc.§ | 440 | 7,159 | ||||||
Oracle Corp.*§ | 360 | 6,383 | ||||||
CommScope, Inc.*§ | 380 | 5,905 | ||||||
Global Payments, Inc.§ | 180 | 5,902 | ||||||
Novellus Systems, Inc.*§ | 470 | 5,800 | ||||||
MEMC Electronic Materials, Inc.*§ | 400 | 5,712 | ||||||
Compuware Corp.*§ | 760 | 5,130 | ||||||
Apple, Inc.*§ | 60 | 5,121 | ||||||
Qualcomm, Inc.§ | 140 | 5,016 | ||||||
Xerox Corp. | 617 | 4,917 | ||||||
EchoStar Corp. — Class A*§ | 330 | 4,907 | ||||||
Seagate Technology | 1,050 | 4,651 | ||||||
Nvidia Corp.* | 510 | 4,116 | ||||||
Vishay Intertechnology, Inc.* | 1,180 | 4,036 | ||||||
Linear Technology Corp.§ | 180 | 3,982 | ||||||
Intersil Corp. — Class A§ | 430 | 3,952 | ||||||
Xilinx, Inc.§ | 210 | 3,742 | ||||||
Cadence Design Systems, Inc.* | 850 | 3,111 | ||||||
Microchip Technology, Inc.§ | 130 | 2,539 | ||||||
Fairchild Semiconductor International, Inc.* | 410 | 2,005 | ||||||
Molex, Inc.§ | 130 | 1,884 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 39 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Sun Microsystems, Inc.* | 450 | $ | 1,719 | |||||
Broadridge Financial Solutions, Inc.§ | 130 | 1,630 | ||||||
Trimble Navigation Ltd.*§ | 70 | 1,513 | ||||||
Lender Processing Services, Inc.§ | 50 | 1,472 | ||||||
Juniper Networks, Inc.*§ | 80 | 1,401 | ||||||
CA, Inc.§ | 70 | 1,297 | ||||||
Convergys Corp.* | 165 | 1,058 | ||||||
Accenture Ltd. — Class A | 30 | 984 | ||||||
Sohu.com, Inc.*§ | 20 | 947 | ||||||
International Business Machines Corp.§ | 10 | 842 | ||||||
Micron Technology, Inc.* | 260 | 686 | ||||||
Metavante Technologies, Inc.*§ | 40 | 644 | ||||||
NeuStar, Inc.* | 30 | 574 | ||||||
Western Union Co.§ | 40 | 574 | ||||||
NCR Corp.*§ | 40 | 566 | ||||||
ANSYS, Inc.*§ | 20 | 558 | ||||||
Amphenol Corp.§ | 20 | 480 | ||||||
SanDisk Corp.* | 40 | 384 | ||||||
Ciena Corp.*§ | 50 | 335 | ||||||
Salesforce.com, Inc.* | 4 | 128 | ||||||
Total Information Technology | 319,841 | |||||||
ENERGY 1.4% | ||||||||
SEACOR Holdings, Inc.* | 390 | 25,993 | ||||||
ConocoPhillips | 320 | 16,576 | ||||||
Cimarex Energy Co. | 460 | 12,319 | ||||||
ENSCO International, Inc. | 420 | 11,924 | ||||||
Anadarko Petroleum Corp. | 300 | 11,565 | ||||||
Patterson-UTI Energy, Inc. | 660 | 7,597 | ||||||
Unit Corp.* | 270 | 7,214 | ||||||
Superior Energy Services* | 430 | 6,850 | ||||||
Noble Corp. | 310 | 6,848 | ||||||
Valero Energy Corp. | 280 | 6,059 | ||||||
Mariner Energy, Inc.* | 520 | 5,304 | ||||||
Atwood Oceanics, Inc.* | 340 | 5,195 | ||||||
Helmerich & Payne, Inc. | 220 | 5,005 | ||||||
Chesapeake Energy Corp. | 300 | 4,851 | ||||||
National-Oilwell Varco, Inc.* | 190 | 4,644 | ||||||
Quicksilver Resources, Inc.* | 810 | 4,512 | ||||||
Rowan Companies, Inc. | 250 | 3,975 | ||||||
Marathon Oil Corp. | 140 | 3,830 | ||||||
FMC Technologies, Inc.* | 160 | 3,813 | ||||||
Hess Corp. | 70 | 3,755 | ||||||
Nabors Industries Ltd.* | 280 | 3,352 | ||||||
EOG Resources, Inc. | 50 | 3,329 | ||||||
Transocean LTD.* | 70 | 3,307 | ||||||
PetroHawk Energy Corp.* | 210 | 3,282 | ||||||
Tidewater, Inc. | 80 | 3,222 | ||||||
Cabot Oil & Gas Corp. | 110 | 2,860 | ||||||
Noble Energy, Inc. | 50 | 2,461 | ||||||
Key Energy Services, Inc.* | 550 | 2,425 | ||||||
Whiting Petroleum Corp.* | 70 | 2,342 | ||||||
Cameron International Corp.* | 110 | 2,255 | ||||||
Oil States International, Inc.* | 120 | 2,243 | ||||||
Tesoro Corp. | 170 | 2,239 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Apache Corp. | 30 | $ | 2,236 | |||||
Forest Oil Corp.* | 110 | 1,814 | ||||||
Global Industries Ltd.* | 460 | 1,605 | ||||||
Williams Companies, Inc. | 110 | 1,593 | ||||||
Chevron Corp. | 20 | 1,479 | ||||||
Murphy Oil Corp. | 30 | 1,330 | ||||||
Holly Corp. | 70 | 1,276 | ||||||
Massey Energy Co. | 90 | 1,241 | ||||||
Smith International, Inc. | 40 | 916 | ||||||
Oceaneering International, Inc.* | 30 | 874 | ||||||
W&T Offshore, Inc. | 60 | 859 | ||||||
Helix Energy Solutions Group, Inc.* | 110 | 796 | ||||||
XTO Energy, Inc. | 20 | 705 | ||||||
Range Resources Corp. | 20 | 688 | ||||||
Alpha Natural Resources, Inc.* | 40 | 648 | ||||||
Pride International, Inc.* | 40 | 639 | ||||||
Patriot Coal Corp.* | 90 | 563 | ||||||
Cheniere Energy, Inc.* | 50 | 143 | ||||||
Total Energy | 210,551 | |||||||
TELECOMMUNICATION SERVICES 1.0% | ||||||||
Verizon Communications, Inc.§ | 1,090 | 36,951 | ||||||
MetroPCS Communications, Inc.*§ | 1,830 | 27,175 | ||||||
AT&T, Inc.§ | 830 | 23,655 | ||||||
Qwest Communications International, Inc.§ | 3,880 | 14,123 | ||||||
U.S. Cellular Corp.*§ | 280 | 12,107 | ||||||
American Tower Corp. — Class A*§ | 340 | 9,969 | ||||||
Deutsche Telekom AG — SP ADR§ | 630 | 9,639 | ||||||
Leap Wireless International, Inc. — Class B*§ | 100 | 2,689 | ||||||
Windstream Corp.§ | 250 | 2,300 | ||||||
Tele Norte Leste Participacoes SA — ADR§ | 150 | 2,088 | ||||||
CenturyTel, Inc.§ | 70 | 1,913 | ||||||
Frontier Communications Corp.§ | 210 | 1,835 | ||||||
tw telecom Inc.*§ | 150 | 1,271 | ||||||
NTELOS Holdings Corp.§ | 50 | 1,233 | ||||||
NII Holdings, Inc. — Class B* | 50 | 909 | ||||||
Cbeyond, Inc.*§ | 50 | 799 | ||||||
Global Crossing*§ | 100 | 794 | ||||||
Iowa Telecommunications Services, Inc.§ | 50 | 714 | ||||||
Crown Castle International Corp.*§ | 20 | 352 | ||||||
Telephone & Data Systems, Inc. | 10 | 318 | ||||||
Total Telecommunication Services | 150,834 | |||||||
MATERIALS 1.0% | ||||||||
Crown Holdings, Inc.*§ | 1,070 | 20,544 | ||||||
Lubrizol Corp.§ | 350 | 12,737 | ||||||
Monsanto Co.§ | 160 | 11,256 | ||||||
Airgas, Inc.§ | 280 | 10,917 | ||||||
AptarGroup, Inc.§ | 280 | 9,867 | ||||||
Sonoco Products Co.§ | 350 | 8,106 | ||||||
CF Industries Holdings, Inc.§ | 150 | 7,374 | ||||||
Alcoa, Inc.§ | 620 | 6,981 |
40 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
AK Steel Holding Corp.§ | 630 | $ | 5,872 | |||||
Praxair, Inc.§ | 90 | 5,342 | ||||||
The Mosaic Co.§ | 140 | 4,844 | ||||||
Dow Chemical Co.§ | 300 | 4,527 | ||||||
Reliance Steel & Aluminum Co.§ | 220 | 4,387 | ||||||
Nalco Holding Co.§ | 370 | 4,270 | ||||||
International Paper Co.§ | 360 | 4,248 | ||||||
Allegheny Technologies, Inc. | 130 | 3,319 | ||||||
Ashland, Inc. | 310 | 3,258 | ||||||
Temple-Inland, Inc.§ | 660 | 3,168 | ||||||
Freeport-McMoRan Copper & Gold, Inc. | 120 | 2,933 | ||||||
Albemarle Corp.§ | 100 | 2,230 | ||||||
Steel Dynamics, Inc.§ | 150 | 1,677 | ||||||
United States Steel Corp.§ | 40 | 1,488 | ||||||
Martin Marietta Materials, Inc.§ | 10 | 971 | ||||||
FMC Corp.§ | 20 | 895 | ||||||
PPG Industries, Inc.§ | 20 | 849 | ||||||
Sealed Air Corp. | 45 | 672 | ||||||
Greif, Inc. — Class A§ | 10 | 334 | ||||||
Southern Copper Corp.§ | 20 | 321 | ||||||
Olympic Steel, Inc. | 1 | 20 | ||||||
Total Materials | 143,407 | |||||||
Total Common Stocks | ||||||||
(Cost $3,509,855) | 3,565,692 | |||||||
EXCHANGE TRADED FUNDS 7.6% | ||||||||
iShares MSCI Emerging Markets Index Fund | 23,480 | 586,296 | ||||||
Liberty All Star Equity Fund§ | 20,110 | 70,385 | ||||||
Eaton Vance Tax-Managed Buy-Write Income Fund§ | 5,520 | 69,166 | ||||||
Eaton Vance Tax-Managed Buy-Write Opportunities Fund§ | 6,710 | 68,442 | ||||||
First Trust Enhanced Equity Income Fund, Inc.§ | 7,710 | 68,233 | ||||||
Nuveen Equity Premium and Growth Fund§ | 6,350 | 68,135 | ||||||
Nuveen Core Equity Alpha Fund§ | 7,090 | 68,135 | ||||||
Nuveen Equity Premium Opportunity Fund§ | 6,300 | 67,284 | ||||||
Vanguard Emerging Markets ETF§ | 2,380 | 56,406 | ||||||
Total Exchange Traded Funds | ||||||||
(Cost $1,166,098) | 1,122,482 | |||||||
CONTRACTS | ||||||||
OPTIONS PURCHASED 0.2% | ||||||||
Put Options On: | ||||||||
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 840 | 16 | 35,000 | ||||||
Total Options Purchased | ||||||||
(Cost $88,061) | 35,000 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENTS† 29.7% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 1,120,607 | $ | 1,120,607 | ||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,120,607 | 1,120,607 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 1,120,607 | 1,120,607 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,011,431 | 1,011,431 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $4,373,252) | 4,373,252 | |||||||
Total Long Securities 61.9% | ||||||||
(Cost $9,137,266) | $ | 9,096,426 | ||||||
SHARES | ||||||||
COMMON STOCKS SOLD SHORT (18.9)% | ||||||||
TELECOMMUNICATION SERVICES (0.1)% | ||||||||
Level 3 Communications, Inc.* | 890 | (623 | ) | |||||
Sprint Nextel Corp.* | 1,400 | (2,562 | ) | |||||
SBA Communications Corp. — Class A* | 490 | (7,997 | ) | |||||
Total Telecommunication Services | (11,182 | ) | ||||||
ENERGY (0.8)% | ||||||||
Southwestern Energy Co.* | 10 | (290 | ) | |||||
Foundation Coal Holdings, Inc. | 60 | (841 | ) | |||||
Sunoco, Inc. | 20 | (869 | ) | |||||
Walter Industries, Inc. | 50 | (875 | ) | |||||
Arch Coal, Inc. | 60 | (977 | ) | |||||
Frontier Oil Corp. | 80 | (1,010 | ) | |||||
SandRidge Energy, Inc.* | 170 | (1,045 | ) | |||||
Encore Acquisition Co.* | 60 | (1,531 | ) | |||||
Hercules Offshore, Inc.* | 340 | (1,615 | ) | |||||
Tetra Technologies, Inc.* | 420 | (2,041 | ) | |||||
Diamond Offshore Drilling, Inc. | 40 | (2,358 | ) | |||||
El Paso Corp. | 380 | (2,975 | ) | |||||
Southern Union Co. | 230 | (2,999 | ) | |||||
CONSOL Energy Inc. | 110 | (3,144 | ) | |||||
BJ Services Co. | 310 | (3,618 | ) | |||||
Continental Resources, Inc.* | 180 | (3,728 | ) | |||||
Schlumberger Ltd. | 90 | (3,810 | ) | |||||
Baker Hughes, Inc. | 130 | (4,169 | ) | |||||
CNX Gas Corp.* | 160 | (4,368 | ) | |||||
Peabody Energy Corp. | 290 | (6,598 | ) | |||||
Exterran Holdings, Inc.* | 310 | (6,603 | ) | |||||
Overseas Shipholding Group, Inc | 180 | (7,580 | ) | |||||
Plains Exploration & Production Co.* | 330 | (7,669 | ) | |||||
Teekay Corp. | 410 | (8,057 | ) | |||||
IHS, Inc.* | 220 | (8,232 | ) |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 41 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Newfield Exploration Co.* | 490 | $ | (9,678 | ) | ||||
Denbury Resources, Inc.* | 1,350 | (14,742 | ) | |||||
Total Energy | (111,422 | ) | ||||||
MATERIALS (1.1)% | ||||||||
Olympic Steel, Inc. | 1 | (20 | ) | |||||
Louisiana-Pacific Corp. | 120 | (187 | ) | |||||
Smurfit-Stone Container Corp.* | 960 | (245 | ) | |||||
Century Aluminum Co.* | 30 | (300 | ) | |||||
RPM International, Inc. | 30 | (399 | ) | |||||
Sealed Air Corp. | 35 | (523 | ) | |||||
Carpenter Technology Corp. | 30 | (616 | ) | |||||
Cliffs Natural Resources, Inc. | 30 | (768 | ) | |||||
Commercial Metals Co. | 70 | (831 | ) | |||||
Nucor Corp. | 20 | (924 | ) | |||||
Titanium Metals Corp. | 210 | (1,850 | ) | |||||
Intrepid Potash, Inc.* | 90 | (1,869 | ) | |||||
Sigma-Aldrich Corp. | 50 | (2,112 | ) | |||||
Owens-Illinois, Inc.* | 100 | (2,733 | ) | |||||
International Flavors & Fragrances, Inc. | 100 | (2,972 | ) | |||||
Celanese Corp. | 240 | (2,983 | ) | |||||
Valhi, Inc. | 390 | (4,173 | ) | |||||
Eastman Chemical Co. | 150 | (4,757 | ) | |||||
Cabot Corp. | 370 | (5,661 | ) | |||||
Chemtura Corp. | 4,370 | (6,118 | ) | |||||
Scotts Miracle-Gro Co. — Class A | 230 | (6,836 | ) | |||||
Eagle Materials, Inc. | 450 | (8,285 | ) | |||||
Pactiv Corp.* | 340 | (8,459 | ) | |||||
Westlake Chemical Corp. | 600 | (9,774 | ) | |||||
Bemis Co., Inc. | 480 | (11,366 | ) | |||||
Weyerhaeuser Co. | 430 | (13,162 | ) | |||||
Valspar Corp. | 1,000 | (18,090 | ) | |||||
Ecolab, Inc. | 600 | (21,090 | ) | |||||
Newmont Mining Corp. | 750 | (30,525 | ) | |||||
Total Materials | (167,628 | ) | ||||||
CONSUMER STAPLES (1.3)% | ||||||||
Altria Group, Inc. | 3 | (45 | ) | |||||
Tyson Foods, Inc. — Class A | 10 | (88 | ) | |||||
Central European Distribution Corp.* | 10 | (197 | ) | |||||
Rite Aid Corp.* | 2,770 | (853 | ) | |||||
Hormel Foods Corp. | 70 | (2,176 | ) | |||||
Coca-Cola Co. | 80 | (3,622 | ) | |||||
Walgreen Co. | 250 | (6,167 | ) | |||||
Philip Morris International, Inc. | 180 | (7,832 | ) | |||||
Smithfield Foods, Inc.* | 650 | (9,145 | ) | |||||
Dean Foods Co.* | 750 | (13,478 | ) | |||||
Constellation Brands, Inc. — Class A* | 870 | (13,720 | ) | |||||
Hershey Co. | 510 | (17,717 | ) | |||||
Colgate-Palmolive Co. | 260 | (17,820 | ) | |||||
ConAgra Foods, Inc. | 1,100 | (18,150 | ) | |||||
Sara Lee Corp. | 2,230 | (21,832 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Campbell Soup Co. | 870 | $ | (26,109 | ) | ||||
Avon Products, Inc. | 1,570 | (37,727 | ) | |||||
Total Consumer Staples | (196,678 | ) | ||||||
UTILITIES (1.5)% | ||||||||
PG&E Corp. | 1 | (39 | ) | |||||
American Electric Power Co., Inc. | 10 | (333 | ) | |||||
Northeast Utilities System | 20 | (481 | ) | |||||
Reliant Energy, Inc.* | 170 | (983 | ) | |||||
Consolidated Edison, Inc. | 30 | (1,168 | ) | |||||
NiSource, Inc. | 180 | (1,975 | ) | |||||
MDU Resources Group, Inc. | 130 | (2,805 | ) | |||||
Exelon Corp. | 90 | (5,005 | ) | |||||
Ameren Corp. | 190 | (6,319 | ) | |||||
Allegheny Energy, Inc. | 200 | (6,772 | ) | |||||
Dynegy, Inc. — Class A* | 3,660 | (7,320 | ) | |||||
CMS Energy Corp. | 810 | (8,189 | ) | |||||
Centerpoint Energy, Inc. | 670 | (8,455 | ) | |||||
Equitable Resources, Inc. | 300 | (10,065 | ) | |||||
Duke Energy Corp. | 700 | (10,507 | ) | |||||
Southern Co. | 480 | (17,760 | ) | |||||
OGE Energy Corp. | 690 | (17,788 | ) | |||||
Xcel Energy Inc. | 980 | (18,179 | ) | |||||
Aqua America, Inc. | 1,950 | (40,151 | ) | |||||
Hawaiian Electric Industries, Inc. | 2,250 | (49,815 | ) | |||||
Total Utilities | (214,109 | ) | ||||||
CONSUMER DISCRETIONARY (2.3)% | ||||||||
Harte-Hanks, Inc. | 30 | (187 | ) | |||||
American Eagle Outfitters, Inc. | 30 | (281 | ) | |||||
RadioShack Corp. | 27 | (322 | ) | |||||
Jarden Corp.* | 30 | (345 | ) | |||||
Chico’s FAS, Inc.* | 90 | (376 | ) | |||||
Lowe’s Companies, Inc. | 20 | (430 | ) | |||||
Ryland Group, Inc. | 30 | (530 | ) | |||||
Coldwater Creek, Inc.* | 220 | (627 | ) | |||||
Harley-Davidson, Inc. | 40 | (679 | ) | |||||
Lamar Advertising Co. — Class A* | 60 | (753 | ) | |||||
Warner Music Group Corp. | 260 | (785 | ) | |||||
Office Depot, Inc.* | 270 | (805 | ) | |||||
Fortune Brands, Inc. | 20 | (826 | ) | |||||
Dollar Tree, Inc.* | 20 | (836 | ) | |||||
DISH Network Corp. — Class A* | 80 | (887 | ) | |||||
AutoNation, Inc.* | 90 | (889 | ) | |||||
Signet Jewelers Ltd. | 110 | (954 | ) | |||||
Harman International Industries, Inc. | 60 | (1,004 | ) | |||||
Starwood Hotels & Resorts Worldwide, Inc. | 60 | (1,074 | ) | |||||
Boyd Gaming Corp. | 240 | (1,135 | ) | |||||
Wynn Resorts, Ltd.* | 30 | (1,268 | ) | |||||
Penn National Gaming Inc.* | 60 | (1,283 | ) | |||||
Orient-Express Hotels Ltd. — Class A | 210 | (1,609 | ) | |||||
Cooper Industries Ltd. — Class A | 60 | (1,754 | ) |
42 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Macy’s, Inc. | 200 | $ | (2,070 | ) | ||||
Interpublic Group of Companies, Inc.* | 590 | (2,336 | ) | |||||
Virgin Media, Inc. | 490 | (2,445 | ) | |||||
E.W. Scripps Co. — Class A | 1,170 | (2,586 | ) | |||||
International Game Technology | 220 | (2,616 | ) | |||||
Scientific Games Corp. — Class A* | 150 | (2,631 | ) | |||||
CarMax, Inc.* | 360 | (2,837 | ) | |||||
Jones Apparel Group, Inc. | 570 | (3,340 | ) | |||||
Liz Claiborne, Inc. | 1,300 | (3,380 | ) | |||||
Lennar Corp. — Class A | 400 | (3,468 | ) | |||||
Wyndham Worldwide Corp. | 550 | (3,602 | ) | |||||
DreamWorks Animation SKG, Inc. — Class A | 143 | (3,612 | ) | |||||
Panera Bread Co. — Class A* | 70 | (3,657 | ) | |||||
Brinker International, Inc. | 350 | (3,689 | ) | |||||
Las Vegas Sands Corp.* | 630 | (3,736 | ) | |||||
LKQ Corp.* | 340 | (3,964 | ) | |||||
Kohl’s Corp.* | 120 | (4,344 | ) | |||||
Federal-Mogul Corp.* | 1,050 | (4,441 | ) | |||||
NIKE, Inc. — Class B | 90 | (4,590 | ) | |||||
Hearst-Argyle Television, Inc. | 850 | (5,151 | ) | |||||
Mattel, Inc. | 330 | (5,280 | ) | |||||
Pool Corp. | 300 | (5,391 | ) | |||||
Goodyear Tire & Rubber Co.* | 910 | (5,433 | ) | |||||
Marriott International, Inc. — Class A | 280 | (5,446 | ) | |||||
Coach, Inc.* | 280 | (5,816 | ) | |||||
Morningstar, Inc.* | 180 | (6,390 | ) | |||||
Strayer Education, Inc. | 30 | (6,432 | ) | |||||
Thor Industries, Inc. | 500 | (6,590 | ) | |||||
Yum! Brands, Inc. | 220 | (6,930 | ) | |||||
Eastman Kodak Co. | 1,110 | (7,304 | ) | |||||
Starbucks Corp.* | 830 | (7,852 | ) | |||||
WABCO Holdings, Inc. | 540 | (8,527 | ) | |||||
NVR, Inc.* | 20 | (9,125 | ) | |||||
Saks, Inc.* | 2,150 | (9,417 | ) | |||||
Tim Hortons, Inc. | 330 | (9,517 | ) | |||||
Cablevision Systems Corp. — Class A | 590 | (9,936 | ) | |||||
Home Depot, Inc. | 490 | (11,280 | ) | |||||
Pulte Homes, Inc. | 1,450 | (15,848 | ) | |||||
Choice Hotels International, Inc. | 560 | (16,834 | ) | |||||
Scripps Networks Interactive, Inc. — Class A | 790 | (17,380 | ) | |||||
H&R Block, Inc. | 1,000 | (22,720 | ) | |||||
McDonald’s Corp. | 380 | (23,632 | ) | |||||
Toll Brothers, Inc.* | 1,310 | (28,073 | ) | |||||
Total Consumer Discretionary | (339,287 | ) | ||||||
HEALTH CARE (2.3)% | ||||||||
Lincare Holdings Inc. | 1 | (27 | ) | |||||
UnitedHealth Group, Inc. | 2 | (53 | ) | |||||
King Pharmaceuticals, Inc. | 7 | (74 | ) | |||||
Celgene Corp. | 4 | (221 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Brookdale Senior Living Inc. | 40 | $ | (223 | ) | ||||
PerkinElmer, Inc. | 40 | (556 | ) | |||||
Idexx Laboratories, Inc.* | 20 | (722 | ) | |||||
WellCare Health Plans, Inc.* | 110 | (1,415 | ) | |||||
Sepracor, Inc.* | 140 | (1,537 | ) | |||||
Omnicare, Inc. | 60 | (1,666 | ) | |||||
Cerner Corp.* | 60 | (2,307 | ) | |||||
Mylan, Inc.* | 240 | (2,374 | ) | |||||
Waters Corp.* | 80 | (2,932 | ) | |||||
PDL BioPharma, Inc. | 480 | (2,966 | ) | |||||
VCA Antech, Inc.* | 180 | (3,578 | ) | |||||
Health Management Associates, Inc. — Class A* | 2,180 | (3,902 | ) | |||||
Life Technologies Corp.* | 170 | (3,963 | ) | |||||
Hologic, Inc.* | 310 | (4,052 | ) | |||||
Edwards Lifesciences Corp.* | 80 | (4,396 | ) | |||||
IMS Health, Inc. — Class B | 330 | (5,003 | ) | |||||
Express Scripts, Inc.* | 100 | (5,498 | ) | |||||
Schering-Plough Corp. | 370 | (6,301 | ) | |||||
Tenet Healthcare Corp.* | 5,830 | (6,704 | ) | |||||
Amylin Pharmaceuticals, Inc.* | 670 | (7,269 | ) | |||||
Advanced Medical Optics, Inc.* | 1,190 | (7,866 | ) | |||||
Watson Pharmaceuticals, Inc.* | 330 | (8,768 | ) | |||||
Hospira, Inc.* | 330 | (8,851 | ) | |||||
CooperCompanies, Inc. | 580 | (9,512 | ) | |||||
Teleflex, Inc. | 200 | (10,020 | ) | |||||
BioMarin Pharmaceuticals, Inc.* | 580 | (10,324 | ) | |||||
Gilead Sciences, Inc.* | 230 | (11,762 | ) | |||||
Stryker Corp. | 330 | (13,184 | ) | |||||
Techne Corp. | 240 | (15,485 | ) | |||||
Merck & Company, Inc. | 520 | (15,808 | ) | |||||
Boston Scientific Corp.* | 2,200 | (17,028 | ) | |||||
Illumina, Inc.* | 730 | (19,017 | ) | |||||
HLTH Corp.* | 2,070 | (21,652 | ) | |||||
Genzyme Corp.* | 350 | (23,230 | ) | |||||
Allergan, Inc. | 600 | (24,192 | ) | |||||
Cephalon, Inc.* | 350 | (26,964 | ) | |||||
Covidien Ltd. | 810 | (29,354 | ) | |||||
Total Health Care | (340,756 | ) | ||||||
INFORMATION TECHNOLOGY (2.6)% | ||||||||
Xerox Corp. | 7 | (56 | ) | |||||
ADC Telecommunications, Inc.* | 11 | (70 | ) | |||||
Convergys Corp. | 15 | (96 | ) | |||||
Teradata Corp.* | 10 | (148 | ) | |||||
VeriFone Holdings, Inc.* | 50 | (245 | ) | |||||
Lexmark International, Inc. — Class A* | 10 | (269 | ) | |||||
Sanmina-SCI Corp.* | 760 | (357 | ) | |||||
F5 Networks, Inc.* | 20 | (457 | ) | |||||
Equinix, Inc.* | 10 | (532 | ) | |||||
Autodesk, Inc.* | 30 | (589 | ) | |||||
MoneyGram International, Inc.* | 620 | (626 | ) | |||||
ON Semiconductor Corp.* | 210 | (714 | ) | |||||
DST Systems, Inc.* | 20 | (760 | ) | |||||
VMware, Inc.* | 40 | (948 | ) |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 43 |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
Acxiom Corp. | 120 | $ | (973 | ) | ||||
Kla-Tencor Corp. | 50 | (1,089 | ) | |||||
Yahoo!, Inc.* | 90 | (1,098 | ) | |||||
Unisys Corp.* | 2,110 | (1,793 | ) | |||||
Corning, Inc. | 210 | (2,001 | ) | |||||
JDS Uniphase Corp.* | 570 | (2,080 | ) | |||||
Dell, Inc.* | 220 | (2,253 | ) | |||||
Advanced Micro Devices, Inc.* | 1,220 | (2,635 | ) | |||||
Cognizant Technology Solutions Corp. — Class A* | 150 | (2,709 | ) | |||||
Marvell Technology Group Ltd.* | 420 | (2,801 | ) | |||||
Riverbed Technology, Inc.* | 250 | (2,848 | ) | |||||
MasterCard, Inc. | 20 | (2,859 | ) | |||||
Lam Research Corp.* | 140 | (2,979 | ) | |||||
Google, Inc. — Class A* | 10 | (3,077 | ) | |||||
eBay, Inc.* | 230 | (3,211 | ) | |||||
Total System Services, Inc. | 250 | (3,500 | ) | |||||
Brocade Communications Systems, Inc.* | 1,520 | (4,256 | ) | |||||
Teradyne, Inc.* | 1,090 | (4,600 | ) | |||||
Tech Data Corp.* | 260 | (4,638 | ) | |||||
Cree, Inc.* | 360 | (5,713 | ) | |||||
NetApp, Inc.* | 410 | (5,728 | ) | |||||
Salesforce.com, Inc.* | 184 | (5,890 | ) | |||||
Nuance Communications, Inc.* | 620 | (6,423 | ) | |||||
Novell, Inc.* | 1,680 | (6,535 | ) | |||||
Adobe Systems, Inc.* | 320 | (6,813 | ) | |||||
AVX Corp. | 870 | (6,908 | ) | |||||
Broadcom Corp. — Class A* | 430 | (7,297 | ) | |||||
Akamai Technologies, Inc.* | 498 | (7,515 | ) | |||||
Integrated Device Technology, Inc.* | 1,490 | (8,359 | ) | |||||
VeriSign, Inc.* | 440 | (8,395 | ) | |||||
Motorola, Inc. | 1,960 | (8,683 | ) | |||||
Mettler-Toledo International Inc.* | 130 | (8,762 | ) | |||||
Flir Systems, Inc.* | 320 | (9,818 | ) | |||||
Tyco Electronics Ltd. | 610 | (9,888 | ) | |||||
Rambus, Inc.* | 670 | (10,666 | ) | |||||
International Rectifier Corp.* | 880 | (11,880 | ) | |||||
LSI Logic Corp.* | 3,720 | (12,239 | ) | |||||
Visa Inc. | 240 | (12,588 | ) | |||||
Dolby Laboratories, Inc. — Class A* | 390 | (12,776 | ) | |||||
IAC/InterActiveCorp* | 870 | (13,685 | ) | |||||
Hewitt Associates, Inc. — Class A* | 490 | (13,906 | ) | |||||
Atmel Corp.* | 5,320 | (16,652 | ) | |||||
Tellabs, Inc.* | 4,060 | (16,727 | ) | |||||
Electronic Arts, Inc.* | 1,050 | (16,842 | ) | |||||
SAIC, Inc.* | 1,020 | (19,870 | ) | |||||
Altera Corp. | 1,200 | (20,052 | ) | |||||
Paychex, Inc. | 770 | (20,236 | ) | |||||
Diebold, Inc. | 750 | (21,068 | ) | |||||
Total Information Technology | (389,181 | ) | ||||||
MARKET | ||||||||
SHARES | VALUE | |||||||
INDUSTRIALS (2.8)% | ||||||||
General Dynamics Corp. | 11 | $ | (577 | ) | ||||
Southwest Airlines Co. | 74 | (638 | ) | |||||
Armstrong World Industries, Inc | 30 | (649 | ) | |||||
Weatherford International Ltd.* | 60 | (649 | ) | |||||
Goodrich Corp. | 30 | (1,111 | ) | |||||
Danaher Corp. | 20 | (1,132 | ) | |||||
BE Aerospace, Inc.* | 150 | (1,153 | ) | |||||
Pall Corp. | 60 | (1,706 | ) | |||||
Graco, Inc. | 80 | (1,898 | ) | |||||
HNI Corp. | 130 | (2,059 | ) | |||||
Harsco Corp. | 80 | (2,214 | ) | |||||
Spirit Aerosystems Holdings, Inc. — Class A* | 220 | (2,237 | ) | |||||
Ingersoll-Rand Company Ltd. — Class A | 130 | (2,255 | ) | |||||
Cummins Inc. | 90 | (2,406 | ) | |||||
Shaw Group Inc.* | 140 | (2,866 | ) | |||||
Rockwell Automation, Inc. | 90 | (2,902 | ) | |||||
General Electric Co. | 180 | (2,916 | ) | |||||
Crane Co. | 170 | (2,931 | ) | |||||
Cintas Corp. | 130 | (3,020 | ) | |||||
AGCO Corp.* | 130 | (3,067 | ) | |||||
PACCAR Inc. | 110 | (3,146 | ) | |||||
Corrections Corp. of America* | 200 | (3,272 | ) | |||||
AMETEK, Inc. | 120 | (3,625 | ) | |||||
Masco Corp. | 370 | (4,118 | ) | |||||
USG Corp.* | 610 | (4,904 | ) | |||||
Robert Half International, Inc. | 240 | (4,997 | ) | |||||
Corporate Executive Board Co. | 270 | (5,956 | ) | |||||
Monster Worldwide, Inc.* | 510 | (6,166 | ) | |||||
Jacobs Engineering Group Inc.* | 140 | (6,734 | ) | |||||
Tyco International Ltd. | 330 | (7,128 | ) | |||||
FTI Consulting, Inc.* | 160 | (7,149 | ) | |||||
Donaldson Company, Inc. | 230 | (7,740 | ) | |||||
Con-way Inc. | 310 | (8,246 | ) | |||||
Rockwell Collins, Inc. | 230 | (8,991 | ) | |||||
First Solar, Inc.* | 70 | (9,657 | ) | |||||
SunPower Corp.* | 270 | (9,990 | ) | |||||
UTi Worldwide, Inc. | 730 | (10,468 | ) | |||||
Avery Dennison Corp. | 340 | (11,128 | ) | |||||
Fastenal Co. | 380 | (13,243 | ) | |||||
Expeditors International of Washington, Inc. | 420 | (13,973 | ) | |||||
FedEx Corp. | 240 | (15,396 | ) | |||||
Owens Corning, Inc.* | 900 | (15,570 | ) | |||||
CH Robinson Worldwide, Inc. | 310 | (17,059 | ) | |||||
Stericycle, Inc.* | 370 | (19,270 | ) | |||||
Landstar System, Inc. | 720 | (27,670 | ) | |||||
Dun & Bradstreet Corp. | 390 | (30,108 | ) | |||||
Pitney Bowes, Inc. | 1,360 | (34,653 | ) | |||||
United Parcel Service, Inc. — Class B | 1,100 | (60,676 | ) | |||||
Total Industrials | (409,419 | ) | ||||||
44 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (continued)
December 31, 2008
HEDGED EQUITY FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
FINANCIALS (4.1)% | ||||||||
Taubman Centers, Inc. | 10 | $ | (254 | ) | ||||
CapitalSource, Inc. | 60 | (277 | ) | |||||
Endurance Specialty Holdings Ltd. | 10 | (305 | ) | |||||
TD Ameritrade Holding Corp.* | 30 | (427 | ) | |||||
Northern Trust Corp. | 10 | (521 | ) | |||||
XL Capital | 170 | (629 | ) | |||||
HRPT Properties Trust | 230 | (775 | ) | |||||
Unitrin, Inc. | 50 | (797 | ) | |||||
Legg Mason, Inc. | 40 | (876 | ) | |||||
MBIA, Inc.* | 230 | (936 | ) | |||||
SEI Investments Co. | 60 | (943 | ) | |||||
Colonial BancGroup, Inc. | 560 | (1,159 | ) | |||||
AMB Property Corp. | 50 | (1,171 | ) | |||||
Duke Realty Corp. | 110 | (1,206 | ) | |||||
T. Rowe Price Group, Inc. | 40 | (1,418 | ) | |||||
Whitney Holding Corp. | 90 | (1,439 | ) | |||||
Nasdaq OMX Group, Inc.* | 60 | (1,483 | ) | |||||
American Express Co. | 80 | (1,484 | ) | |||||
MGIC Investment Corp. | 480 | (1,670 | ) | |||||
Wells Fargo & Co. | 60 | (1,769 | ) | |||||
GLG Partners, Inc. | 800 | (1,816 | ) | |||||
Jefferies Group, Inc. | 130 | (1,828 | ) | |||||
Kimco Realty Corp. | 110 | (2,011 | ) | |||||
Old Republic International Corp. | 190 | (2,265 | ) | |||||
Liberty Property Trust | 100 | (2,283 | ) | |||||
East West Bancorp, Inc. | 150 | (2,395 | ) | |||||
AvalonBay Communities, Inc. | 40 | (2,423 | ) | |||||
Health Care REIT, Inc. | 60 | (2,532 | ) | |||||
Kilroy Realty Corp. | 80 | (2,677 | ) | |||||
First Citizens BancShares, Inc. — Class A | 20 | (3,056 | ) | |||||
Marshall & Ilsley Corp. | 230 | (3,137 | ) | |||||
Leucadia National Corp.* | 160 | (3,168 | ) | |||||
U.S. Bancorp | 130 | (3,251 | ) | |||||
E*Trade Financial Corp.* | 3,020 | (3,473 | ) | |||||
Cullen/Frost Bankers, Inc. | 70 | (3,548 | ) | |||||
KeyCorp | 420 | (3,578 | ) | |||||
Forest City Enterprises, Inc. — Class A | 560 | (3,752 | ) | |||||
Plum Creek Timber Company, Inc. | 110 | (3,821 | ) | |||||
MSCI, Inc. — Class A* | 220 | (3,907 | ) | |||||
BRE Properties, Inc. | 140 | (3,917 | ) | |||||
Citigroup, Inc. | 600 | (4,026 | ) | |||||
MF Global Ltd.* | 2,010 | (4,100 | ) | |||||
Zions Bancorporation | 180 | (4,412 | ) | |||||
Eaton Vance Corp. | 210 | (4,412 | ) | |||||
UDR, Inc. | 340 | (4,689 | ) | |||||
Brandywine Realty Trust | 690 | (5,320 | ) | |||||
Student Loan Corp. | 140 | (5,740 | ) | |||||
Allied Capital Corp. | 2,140 | (5,757 | ) | |||||
Morgan Stanley | 370 | (5,935 | ) |
MARKET | ||||||||
SHARES | VALUE | |||||||
Camden Property Trust | 190 | $ | (5,955 | ) | ||||
Regency Centers Corp. | 150 | (7,005 | ) | |||||
First Horizon National Corp. | 700 | (7,399 | ) | |||||
Synovus Financial Corp. | 940 | (7,802 | ) | |||||
Popular, Inc. | 1,590 | (8,204 | ) | |||||
Conseco, Inc.* | 1,600 | (8,288 | ) | |||||
Equity Residential | 280 | (8,350 | ) | |||||
Moody’s Corp. | 440 | (8,840 | ) | |||||
Fifth Third Bancorp | 1,110 | (9,169 | ) | |||||
First American Corp. | 320 | (9,245 | ) | |||||
St Joe Co.* | 390 | (9,485 | ) | |||||
Public Storage | 120 | (9,540 | ) | |||||
Capitol Federal Financial | 210 | (9,576 | ) | |||||
Huntington Bancshares, Inc. | 1,260 | (9,652 | ) | |||||
New York Community Bancorp, Inc. | 880 | (10,525 | ) | |||||
Bank of America Corp. | 760 | (10,701 | ) | |||||
Fidelity National Financial, Inc — Class A | 630 | (11,182 | ) | |||||
SLM Corp.* | 1,270 | (11,303 | ) | |||||
Essex Property Trust, Inc. | 150 | (11,512 | ) | |||||
Simon Property Group, Inc. | 220 | (11,689 | ) | |||||
Franklin Resources, Inc. | 210 | (13,394 | ) | |||||
Ventas, Inc. | 400 | (13,428 | ) | |||||
Brown & Brown, Inc. | 920 | (19,228 | ) | |||||
PNC Financial Services Group, Inc. | 420 | (20,580 | ) | |||||
Lazard Ltd. — Class A | 700 | (20,818 | ) | |||||
Federal Realty Investment Trust | 350 | (21,728 | ) | |||||
Hudson City Bancorp, Inc. | 1,380 | (22,025 | ) | |||||
Digital Realty Trust, Inc. | 700 | (22,995 | ) | |||||
M&T Bank Corp. | 420 | (24,112 | ) | |||||
Marsh & McLennan Companies, Inc. | 2,170 | (52,666 | ) | |||||
TFS Financial Corp. | 4,360 | (56,244 | ) | |||||
Total Financials | (595,408 | ) | ||||||
Total Common Stocks Sold Short | ||||||||
(Proceeds $2,843,299) | (2,775,070 | ) | ||||||
CONTRACTS | ||||||||
OPTIONS WRITTEN (1.1)% | ||||||||
Call Options On: | ||||||||
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 880 | 16 | (160,000 | ) | |||||
Total Options Written | ||||||||
(Premiums Received $168,739) | (160,000 | ) | ||||||
Other Assets in Excess of Other Liabilities – 58.1% | $ | 8,548,997 | ||||||
Net Assets – 100.0% | $ | 14,710,353 |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 45 |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
HEDGED EQUITY FUND
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $5,448,025) | 121 | $ | 91,661 | |||||
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,175,460) | 22 | 49,124 | ||||||
March 2009 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Market Value of Contracts $735,600) | 16 | 47,647 | ||||||
March 2009 Dow Jones STOXX 50 Futures Contracts (Aggregate Market Value of Contracts $1,061,588) | 36 | 44,974 | ||||||
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,281,800) | 26 | 27,000 | ||||||
(Total Aggregate Market Value of Contracts $9,702,473) | $ | 260,406 | ||||||
FUTURES CONTRACTS SOLD SHORT | ||||||||
March 2009 Dow Jones Euro STOXX 50 Index Futures Contracts (Aggregate Market Value of Contracts $211,379) | 6 | $ | (18,213 | ) | ||||
* | Non-Income Producing Security. | |
† | Repurchase Agreements — See Note 6. | |
§ | All or a portion of this security is pledged as short security collateral at December 31, 2008. | |
ADR — American Depository Receipt. | ||
REIT — Real Estate Investment Trust. |
46 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
INTERNATIONAL ROTATION FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
EXCHANGE TRADED FUNDS 13.5% | ||||||||
iShares MSCI Switzerland Index Fund | 87,600 | $ | 1,624,104 | |||||
Total Exchange Traded Funds | ||||||||
(Cost $1,554,812) | 1,624,104 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENTS† 73.3% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 2,268,629 | 2,268,629 | |||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 2,268,629 | 2,268,629 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 2,268,629 | 2,268,629 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 2,047,606 | 2,047,606 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $8,853,493) | 8,853,493 | |||||||
Total Investments 86.8% | ||||||||
(Cost $10,408,305) | $ | 10,477,597 | ||||||
Other Assets in Excess of Liabilities – 13.2% | $ | 1,593,233 | ||||||
Net Assets – 100.0% | $ | 12,070,830 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
CURRENCY FUTURES CONTRACTS | ||||||||
PURCHASED | ||||||||
March 2009 Japanese Yen Futures Contracts (Aggregate Market Value of Contracts $2,760,250) | 20 | $ | 32,294 | |||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 FTSE 100 Index Futures Contracts (Aggregate Market Value of Contracts $4,446,451) | 68 | $ | 293,411 | |||||
January 2009 OMX Stockholm 30 Index Futures Contracts (Aggregate Market Value of Contracts $918,621) | 107 | 25,127 | ||||||
March 2009 S&P/Toronto Stock Exchange 60 Index Futures Contracts (Aggregate Market Value of Contracts $978,320) | 11 | 67,589 |
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
March 2009 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Market Value of Contracts $2,988,375) | 65 | $ | 191,528 | |||||
January 2009 CAC 40 10 Euro Futures Contracts (Aggregate Market Value of Contracts $1,177,729) | 26 | 35,072 | ||||||
(Total Aggregate Market Value of Contracts $10,509,496) | $ | 612,727 | ||||||
CURRENCY FUTURES CONTRACTS | ||||||||
SOLD SHORT | ||||||||
March 2009 Swiss Franc Futures Contracts (Aggregate Market Value of Contracts $1,526,688) | 13 | $ | (159,174 | ) | ||||
† | Repurchase Agreements — See Note 6. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 47 |
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2008
MANAGED FUTURES STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENTS† 100.8% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | $ | 1,656,169 | $ | 1,656,169 | ||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 1,656,169 | 1,656,169 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 1,656,169 | 1,656,169 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,494,814 | 1,494,814 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $6,463,321) | 6,463,321 | |||||||
Total Investments 100.8% | ||||||||
(Cost $6,463,321) | $ | 6,463,321 | ||||||
Liabilities in Excess of | ||||||||
Other Assets – (0.8)% | $ | (50,532 | ) | |||||
Net Assets – 100.0% | $ | 6,412,789 | ||||||
Unrealized | ||||||||
Contracts | Gain | |||||||
CURRENCY FUTURES CONTRACTS | ||||||||
PURCHASED | ||||||||
March 2009 Japanese Yen | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $828,075) | 6 | $ | 19,172 | |||||
FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 U.S. Treasury Note | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $502,813) | 4 | $ | 6,557 | |||||
March 2009 U.S. Treasury Bond | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $552,125) | 4 | 12,994 | ||||||
(Total Aggregate Market Value of Contracts $1,054,938) | $ | 19,551 | ||||||
COMMODITY FUTURES CONTRACTS | ||||||||
SOLD SHORT | ||||||||
March 2009 Copper | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $384,863) | 11 | $ | 52,370 | |||||
February 2009 Live Cattle | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $172,150) | 5 | 14,849 |
UNREALIZED | ||||||||
CONTRACTS | Gain (Loss) | |||||||
March 2009 Coffee | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $126,056) | 3 | $ | 3,493 | |||||
February 2009 Lean Hogs | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $97,280) | 4 | 2,356 | ||||||
March 2009 Sugar | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $79,363) | 6 | 981 | ||||||
June 2009 Lean Hogs | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $63,920) | 2 | (91 | ) | |||||
June 2009 Live Cattle | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $68,960) | 2 | (451 | ) | |||||
March 2009 Cotton | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $73,530) | 3 | (3,834 | ) | |||||
March 2009 Corn | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $325,600) | 16 | (8,328 | ) | |||||
March 2009 Silver | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $113,750) | 2 | (13,010 | ) | |||||
March 2009 Wheat | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $183,225) | 6 | (16,599 | ) | |||||
March 2009 Soybean | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $392,000) | 8 | (19,621 | ) | |||||
March 2009 Cocoa | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $79,950) | 3 | (21,540 | ) | |||||
February 2009 Gold | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $264,150) | 3 | (43,287 | ) | |||||
(Total Aggregate Market Value | ||||||||
of Contracts $2,424,797) | $ | (52,712 | ) | |||||
48 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
MANAGED FUTURES STRATEGY FUND
UNREALIZED | ||||||||
CONTRACTS | GAIN (LOSS) | |||||||
CURRENCY FUTURES CONTRACTS | ||||||||
SOLD SHORT | ||||||||
March 2009 British Pound | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $364,225) | 4 | $ | 3,015 | |||||
March 2009 Canadian Dollar | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $82,140) | 1 | (2,723 | ) | |||||
March 2009 Australian Dollar | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $141,320) | 2 | (13,645 | ) | |||||
March 2009 Swiss Franc | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $117,438) | 1 | (13,853 | ) | |||||
March 2009 Euro | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $871,000) | 5 | (81,019 | ) | |||||
(Total Aggregate Market Value | ||||||||
of Contracts $1,576,123) | $ | (108,225 | ) | |||||
† | Repurchase Agreements — See Note 6. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 49 |
SCHEDULE OF INVESTMENTS
December 31, 2008
REAL ESTATE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
COMMON STOCKS 98.3% | ||||||||
REAL ESTATE INVESTMENT TRUST (REIT) 90.8% | ||||||||
SPECIALIZED REIT 26.4% | ||||||||
Public Storage | 6,701 | $ | 532,730 | |||||
HCP, Inc. | 13,031 | 361,871 | ||||||
Plum Creek Timber Co., Inc. (REIT) | 9,389 | 326,174 | ||||||
Ventas, Inc. | 8,929 | 299,746 | ||||||
Health Care REIT, Inc. | 7,004 | 295,569 | ||||||
Host Hotels & Resorts, Inc. | 34,466 | 260,908 | ||||||
Nationwide Health Properties, Inc. | 8,262 | 237,285 | ||||||
Rayonier, Inc. | 6,788 | 212,804 | ||||||
Senior Housing Properties Trust | 11,451 | 205,202 | ||||||
Hospitality Properties Trust | 12,705 | 188,923 | ||||||
Omega Healthcare Investors, Inc. | 10,355 | 165,369 | ||||||
Healthcare Realty Trust, Inc. | 6,976 | 163,796 | ||||||
Sovran Self Storage, Inc. | 3,872 | 139,392 | ||||||
Entertainment Properties Trust | 4,115 | 122,627 | ||||||
Extra Space Storage, Inc. | 11,780 | 121,570 | ||||||
Potlatch Corp. | 4,518 | 117,513 | ||||||
DiamondRock Hospitality Co. | 21,158 | 107,271 | ||||||
LaSalle Hotel Properties | 7,754 | 85,682 | ||||||
Medical Properties Trust Inc. | 12,926 | 81,563 | ||||||
U-Store-It Trust | 12,113 | 53,903 | ||||||
Total Specialized REIT | 4,079,898 | |||||||
RETAIL REIT 18.5% | ||||||||
Simon Property Group, Inc. | 8,285 | 440,182 | ||||||
Federal Realty Investment Trust | 4,305 | 267,254 | ||||||
KIMCO Realty Corp. | 14,575 | 266,431 | ||||||
Regency Centers Corp. | 5,660 | 264,322 | ||||||
Realty Income Corp. | 9,768 | 226,129 | ||||||
Equity One, Inc. | 9,747 | 172,522 | ||||||
Weingarten Realty Investors | 8,264 | 170,982 | ||||||
Tanger Factory Outlet Centers, Inc. | 4,458 | 167,710 | ||||||
National Retail Properties, Inc. | 9,279 | 159,506 | ||||||
Inland Real Estate Corp. | 11,050 | 143,429 | ||||||
Taubman Centers, Inc. | 5,632 | 143,391 | ||||||
Macerich Co. | 6,325 | 114,862 | ||||||
Acadia Realty Trust | 6,070 | 86,619 | ||||||
CBL & Associates Properties, Inc. | 11,209 | 72,859 | ||||||
Pennsylvania Real Estate Investment Trust | 8,440 | 62,878 | ||||||
Developers Diversified Realty Corp. | 11,648 | 56,842 | ||||||
General Growth Properties, Inc. | 32,841 | 42,365 | ||||||
Total Retail REIT | 2,858,283 | |||||||
OFFICE REIT 14.5% | ||||||||
Boston Properties, Inc. | 5,843 | 321,365 | ||||||
Digital Realty Trust, Inc. | 6,311 | 207,317 | ||||||
Highwoods Properties, Inc. | 7,294 | 199,564 | ||||||
Corporate Office Properties Trust SBI | 5,986 | 183,770 | ||||||
Mack-Cali Realty Corp. | 7,275 | 178,238 |
MARKET | ||||||||
SHARES | VALUE | |||||||
Alexandria Real Estate Equities, Inc. | 2,821 | $ | 170,219 | |||||
Douglas Emmett, Inc. | 12,362 | 161,448 | ||||||
Duke Realty Corp. | 14,048 | 153,966 | ||||||
Kilroy Realty Corp. | 4,317 | 144,447 | ||||||
SL Green Realty Corp. | 5,217 | 135,120 | ||||||
HRPT Properties Trust | 32,855 | 110,721 | ||||||
BioMed Realty Trust, Inc. | 9,331 | 109,359 | ||||||
Brandywine Realty Trust | 13,280 | 102,389 | ||||||
Lexington Realty Trust | 13,116 | 65,580 | ||||||
Total Office REIT | 2,243,503 | |||||||
RESIDENTIAL REIT 13.6% | ||||||||
Equity Residential | 12,873 | 383,873 | ||||||
AvalonBay Communities, Inc. | 4,570 | 276,850 | ||||||
Essex Property Trust, Inc. | 2,356 | 180,823 | ||||||
Camden Property Trust | 5,575 | 174,720 | ||||||
UDR, Inc. | 12,224 | 168,569 | ||||||
Home Properties, Inc. | 3,941 | 160,005 | ||||||
BRE Properties, Inc. — Class A | 5,419 | 151,624 | ||||||
Equity Lifestyle Properties, Inc. | 3,636 | 139,477 | ||||||
Mid-America Apartment Communities, Inc. | 3,687 | 137,009 | ||||||
American Campus Communities, Inc. | 5,720 | 117,146 | ||||||
Apartment Investment & | ||||||||
Management Co. — Class A | 9,233 | 106,641 | ||||||
Post Properties, Inc. | 6,197 | 102,250 | ||||||
Total Residential REIT | 2,098,987 | |||||||
MORTGAGE REIT 6.8% | ||||||||
Annaly Capital Management, Inc. | 29,706 | 471,434 | ||||||
MFA Mortgage Investments, Inc. | 27,625 | 162,711 | ||||||
Capstead Mortgage Corp. | 11,000 | 118,470 | ||||||
CapitalSource, Inc. | 24,820 | 114,669 | ||||||
Redwood Trust, Inc. | 6,989 | 104,206 | ||||||
iStar Financial, Inc. | 34,282 | 76,449 | ||||||
Total Mortgage REIT | 1,047,939 | |||||||
DIVERSIFIED REIT 6.2% | ||||||||
Vornado Realty Trust | 6,896 | 416,174 | ||||||
Liberty Property Trust | 8,496 | 193,964 | ||||||
Washington Real Estate Investment Trust | 5,980 | 169,234 | ||||||
Cousins Properties, Inc. | 7,463 | 103,362 | ||||||
Colonial Properties Trust | 8,804 | 73,337 | ||||||
Total Diversified REIT | 956,071 | |||||||
INDUSTRIAL REIT 4.8% | ||||||||
ProLogis | 14,598 | 202,766 | ||||||
AMB Property Corp. | 8,120 | 190,170 | ||||||
Eastgroup Properties, Inc. | 3,810 | 135,560 | ||||||
DCT Industrial Trust, Inc. | 25,700 | 130,042 | ||||||
First Industrial Realty Trust, Inc. | 7,951 | 60,030 | ||||||
DuPont Fabros Technology, Inc. | 10,041 | 20,785 | ||||||
Total Industrial REIT | 739,353 | |||||||
Total Real Estate Investment Trust (REIT) | 14,024,034 | |||||||
50 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS (concluded)
December 31, 2008
REAL ESTATE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT 7.5% | ||||||||
Brookfield Asset Management, Inc. — Class A | 24,379 | $ | 372,267 | |||||
Brookfield Properties Corp. | 27,686 | 214,013 | ||||||
The St. Joe Co.* | 7,896 | 192,031 | ||||||
Jones Lang LaSalle, Inc. | 4,728 | 130,965 | ||||||
CB Richard Ellis Group, Inc. — Class A* | 23,610 | 101,995 | ||||||
Forestar Real Estate Group, Inc.* | 7,980 | 75,970 | ||||||
Forest City Enterprises, Inc. — Class A | 9,283 | 62,196 | ||||||
Total Real Estate Management & Development | 1,149,437 | |||||||
Total Common Stocks | ||||||||
(Cost $14,306,911) | 15,173,471 | |||||||
FACE | ||||||||
AMOUNT | ||||||||
REPURCHASE AGREEMENT† 1.0% | ||||||||
Credit Suisse Group | ||||||||
issued 12/31/08 at 0.03% | ||||||||
due 01/02/09 | $ | 157,076 | 157,076 | |||||
Total Repurchase Agreement | ||||||||
(Cost $157,076) | 157,076 | |||||||
Total Investments 99.3% | ||||||||
(Cost $14,463,987) | $ | 15,330,547 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 0.7% | $ | 106,737 | ||||||
Net Assets – 100.0% | $ | 15,437,284 |
* | Non-Income Producing Security. | |
† | Repurchase Agreement — See Note 6. | |
REIT — Estate Investment Trust. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 51 |
SCHEDULE OF INVESTMENTS
December 31, 2008
STRENGTHENING DOLLAR 2x STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 42.7% | ||||||||
Federal Farm Credit Bank* 0.25% due 01/02/09 | $ | 1,000,000 | $ | 1,000,000 | ||||
Farmer Mac* 0.07% due 01/07/09 | 1,000,000 | 999,990 | ||||||
Federal Home Loan Bank* 0.20% due 01/06/09 | 1,000,000 | 999,978 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $2,999,968) | 2,999,968 | |||||||
REPURCHASE AGREEMENTS† 53.0% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 953,804 | 953,804 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 953,804 | 953,804 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 953,804 | 953,804 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 860,879 | 860,879 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $3,722,291) | 3,722,291 | |||||||
Total Investments 95.7% | ||||||||
(Cost $6,722,259) | $ | 6,722,259 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 4.3% | $ | 301,317 | ||||||
Net Assets – 100.0% | $ | 7,023,576 | ||||||
Unrealized | ||||||||
Contracts | Loss | |||||||
CURRENCY FUTURES CONTRACTS PURCHASED | ||||||||
March 2009 U.S. Dollar | ||||||||
Index Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $12,733,250) | 155 | $ | (448,962 | ) | ||||
UNITS | ||||||||
CURRENCY INDEX SWAP AGREEMENT | ||||||||
Goldman Sachs International | ||||||||
February 2009 U.S. Dollar | ||||||||
Index Swap, Terminating | ||||||||
02/25/09** | ||||||||
(Notional Market | ||||||||
Value $1,516,613) | 18,503 | $ | (101,832 | ) | ||||
* | 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 U.S. Dollar Index +/- financing at a variable rate. | |
† | Repurchase Agreements — See Note 6. |
52 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
WEAKENING DOLLAR 2x STRATEGY FUND
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
FEDERAL AGENCY DISCOUNT NOTES 13.7% | ||||||||
Farmer Mac* | ||||||||
0.07% due 01/07/09 | $ | 500,000 | $ | 499,994 | ||||
Federal Home Loan Bank* | ||||||||
0.20% due 01/06/09 | 500,000 | 499,989 | ||||||
Freddie Mac** | ||||||||
0.05% due 01/20/09 | 500,000 | 499,988 | ||||||
Total Federal Agency Discount Notes | ||||||||
(Cost $1,499,971) | 1,499,971 | |||||||
REPURCHASE AGREEMENTS† 73.0% | ||||||||
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09 | 2,051,421 | 2,051,421 | ||||||
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09 | 2,051,421 | 2,051,421 | ||||||
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09 | 2,051,421 | 2,051,421 | ||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | 1,851,557 | 1,851,557 | ||||||
Total Repurchase Agreements | ||||||||
(Cost $8,005,820) | 8,005,820 | |||||||
Total Investments 86.7% | ||||||||
(Cost $9,505,791) | $ | 9,505,791 | ||||||
Other Assets in Excess | ||||||||
of Liabilities – 13.3% | $ | 1,459,328 | ||||||
Net Assets – 100.0% | $ | 10,965,119 | ||||||
Unrealized | ||||||||
Contracts | Gain (Loss) | |||||||
CURRENCY FUTURES CONTRACTS | ||||||||
SOLD SHORT | ||||||||
March 2009 U.S. Dollar Index | ||||||||
Futures Contracts | ||||||||
(Aggregate Market Value | ||||||||
of Contracts $12,240,350) | 149 | $ | 583,674 | |||||
UNITS | ||||||||
CURRENCY INDEX SWAP AGREEMENT | ||||||||
SOLD SHORT | ||||||||
Goldman Sachs International | ||||||||
February 2009 U.S. Dollar | ||||||||
Index Swap, Terminating | ||||||||
02/25/09†† | ||||||||
(Notional Market | ||||||||
Value $9,775,635) | 119,266 | $ | (50,744 | ) | ||||
* | 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. | |
** | On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm. | |
† | Repurchase Agreements — See Note 6. | |
†† | Total Return based on U.S. Dollar Index +/- financing at a variable rate. |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 53 |
STATEMENTS OF ASSETS AND LIABILITIES
Absolute | Alternative | |||||||||||||||
Multi-Cap | Sector | Return | Strategies | |||||||||||||
Core Equity | Rotation | Strategies | Allocation | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investment Securities | $ | 1,986,839 | $ | 70,934,306 | $ | 14,772,137 | $ | 391,313 | ||||||||
Investment Securities in Affiliated Funds | — | — | — | 2,395,037 | ||||||||||||
Repurchase Agreements | 140,988 | 929,453 | 9,413,040 | 347,233 | ||||||||||||
Total Investments | 2,127,827 | 71,863,759 | 24,185,177 | 3,133,583 | ||||||||||||
Segregated Cash with Broker | 17,050 | — | 2,757,386 | — | ||||||||||||
Cash | — | — | 111,484 | — | ||||||||||||
Deposits with Brokers for Securities Sold Short | — | — | 10,092,024 | — | ||||||||||||
Variation Margin on Futures Contracts | 2,445 | — | 91,231 | — | ||||||||||||
Receivable for Securities Sold | 750 | 6,319,951 | 6,757,692 | — | ||||||||||||
Receivable for Fund Shares Sold | 9,787 | 9,341 | 49,393 | 7,459 | ||||||||||||
Investment Income Receivable | 3,356 | 171,443 | 19,464 | — | ||||||||||||
Total Assets | 2,161,215 | 78,364,494 | 44,063,851 | 3,141,042 | ||||||||||||
Liabilities | ||||||||||||||||
Short Sales at Market Value | — | — | 8,383,871 | — | ||||||||||||
Written Options at Market Value | — | — | 207,000 | — | ||||||||||||
Unrealized Depreciation on Swap Agreements | — | — | — | — | ||||||||||||
Payable for Swap Settlement | — | — | — | — | ||||||||||||
Variation Margin on Futures Contracts | — | — | — | — | ||||||||||||
Payable for Securities Purchased | — | 5,613,741 | 2,403,670 | — | ||||||||||||
Payable for Fund Shares Redeemed | 27 | 136,868 | 359 | 3,435 | ||||||||||||
Investment Advisory Fees Payable | 548 | 55,412 | 33,366 | — | ||||||||||||
Transfer Agent and Administrative Fees Payable | 444 | 15,392 | — | — | ||||||||||||
Distribution and Service Fees Payable | 444 | 15,392 | — | — | ||||||||||||
Portfolio Accounting Fees Payable | 177 | 6,157 | — | — | ||||||||||||
Custody Fees Payable | 58 | 2,051 | — | — | ||||||||||||
Short Sales Dividends Payable | — | — | 13,891 | — | ||||||||||||
Other Accrued Fees | 3,265 | 80,702 | — | — | ||||||||||||
Total Liabilities | 4,963 | 5,925,715 | 11,042,157 | 3,435 | ||||||||||||
Net Assets | $ | 2,156,252 | $ | 72,438,779 | $ | 33,021,694 | $ | 3,137,607 | ||||||||
Net Assets Consist of | ||||||||||||||||
Paid-In Capital | $ | 3,997,297 | $ | 109,956,077 | $ | 40,996,275 | $ | 3,863,115 | ||||||||
Undistributed Net Investment Income | — | 58,031 | 413,645 | — | ||||||||||||
Accumulated Net Realized Gain (Loss) on Investments | (1,799,659 | ) | (38,099,652 | ) | (9,119,492 | ) | (26,526 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) on Investments | (41,386 | ) | 524,323 | 731,266 | (698,982 | ) | ||||||||||
Net Assets | $ | 2,156,252 | $ | 72,438,779 | $ | 33,021,694 | $ | 3,137,607 | ||||||||
Shares Outstanding | 148,440 | 8,004,122 | 1,574,513 | 157,500 | ||||||||||||
Net Asset Values | $ | 14.53 | $ | 9.05 | $ | 20.97 | $ | 19.92 | ||||||||
Cost of Investments | $ | 2,173,354 | $ | 71,339,436 | $ | 24,461,868 | $ | 3,832,565 | ||||||||
Proceeds from Short Sales | — | — | 8,778,328 | — | ||||||||||||
Premiums Received for Written Options | — | — | 218,571 | — |
54 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
December 31, 2008
Managed | ||||||||||||||||||||||||||||
Futures | Strengthening | Weakening | ||||||||||||||||||||||||||
Commodities | Hedged | International | Strategy | Dollar 2x | Dollar 2x | |||||||||||||||||||||||
Strategy | Equity | Rotation | Fund | Real Estate | Strategy | Strategy | ||||||||||||||||||||||
Fund | Fund | Fund | (Consolidated) | Fund | Fund | Fund | ||||||||||||||||||||||
$ | 9,552,637 | $ | 4,723,174 | $ | 1,624,104 | $ | — | $ | 15,173,471 | $ | 2,999,968 | $ | 1,499,971 | |||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||||
6,520,845 | 4,373,252 | 8,853,493 | 6,463,321 | 157,076 | 3,722,291 | 8,005,820 | ||||||||||||||||||||||
16,073,482 | 9,096,426 | 10,477,597 | 6,463,321 | 15,330,547 | 6,722,259 | 9,505,791 | ||||||||||||||||||||||
— | 2,864,697 | 1,518,149 | 480,612 | — | 990,139 | 1,797,120 | ||||||||||||||||||||||
— | 117,527 | 148 | — | — | — | — | ||||||||||||||||||||||
— | 3,374,616 | — | — | — | — | — | ||||||||||||||||||||||
— | 119,326 | 196,607 | — | — | 57,354 | — | ||||||||||||||||||||||
— | 2,828,731 | — | — | 816,497 | — | — | ||||||||||||||||||||||
242,644 | — | — | 43,475 | 273 | — | 22,861 | ||||||||||||||||||||||
2,682 | 9,847 | — | — | 158,925 | — | — | ||||||||||||||||||||||
16,318,808 | 18,411,170 | 12,192,501 | 6,987,408 | 16,306,242 | 7,769,752 | 11,325,772 | ||||||||||||||||||||||
— | 2,775,070 | — | — | — | — | — | ||||||||||||||||||||||
— | 160,000 | — | — | — | — | — | ||||||||||||||||||||||
— | — | — | — | — | 101,832 | 50,744 | ||||||||||||||||||||||
— | — | — | — | — | 166,407 | 130,550 | ||||||||||||||||||||||
— | — | — | 167,906 | — | — | 55,130 | ||||||||||||||||||||||
492,864 | 712,446 | 91,338 | — | — | — | — | ||||||||||||||||||||||
75 | 32,672 | 9,110 | 394,330 | 825,540 | 456,495 | 102,642 | ||||||||||||||||||||||
4,834 | 14,795 | 8,504 | 4,143 | 10,270 | 7,861 | 7,235 | ||||||||||||||||||||||
2,884 | — | 2,362 | 1,151 | 3,021 | 2,184 | 2,010 | ||||||||||||||||||||||
2,884 | — | 2,362 | 1,151 | 3,021 | 2,184 | 2,010 | ||||||||||||||||||||||
1,153 | — | 945 | 460 | 1,208 | 873 | 804 | ||||||||||||||||||||||
389 | — | 308 | 154 | 406 | 281 | 262 | ||||||||||||||||||||||
— | 5,834 | — | — | — | — | — | ||||||||||||||||||||||
32,408 | — | 6,742 | 5,324 | 25,492 | 8,059 | 9,266 | ||||||||||||||||||||||
537,491 | 3,700,817 | 121,671 | 574,619 | 868,958 | 746,176 | 360,653 | ||||||||||||||||||||||
$ | 15,781,317 | $ | 14,710,353 | $ | 12,070,830 | $ | 6,412,789 | $ | 15,437,284 | $ | 7,023,576 | $ | 10,965,119 | |||||||||||||||
$ | 33,530,795 | $ | 18,261,426 | $ | 16,130,190 | $ | 6,582,617 | $ | 31,600,724 | $ | 6,202,849 | $ | 13,052,626 | |||||||||||||||
234,352 | 119,261 | 89,971 | — | 761,295 | — | 2,388 | ||||||||||||||||||||||
(17,801,737 | ) | (3,948,655 | ) | (4,704,470 | ) | (47,614 | ) | (17,791,295 | ) | 1,371,521 | (2,622,825 | ) | ||||||||||||||||
(182,093 | ) | 278,321 | 555,139 | (122,214 | ) | 866,560 | (550,794 | ) | 532,930 | |||||||||||||||||||
$ | 15,781,317 | $ | 14,710,353 | $ | 12,070,830 | $ | 6,412,789 | $ | 15,437,284 | $ | 7,023,576 | $ | 10,965,119 | |||||||||||||||
1,375,994 | 766,681 | 701,676 | 266,082 | 881,433 | 330,489 | 436,914 | ||||||||||||||||||||||
$ | 11.47 | $ | 19.19 | $ | 17.20 | $ | 24.10 | $ | 17.51 | $ | 21.25 | $ | 25.10 | |||||||||||||||
$ | 16,255,575 | $ | 9,137,266 | $ | 10,408,305 | $ | 6,463,321 | $ | 14,463,987 | $ | 6,722,259 | $ | 9,505,791 | |||||||||||||||
— | 2,843,299 | — | — | — | — | — | ||||||||||||||||||||||
— | 168,739 | — | — | — | — | — |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 55 |
STATEMENTS OF OPERATIONS
Absolute | Alternative | |||||||||||||||
Multi-Cap | Sector | Return | Strategies | |||||||||||||
Core Equity | Rotation | Strategies | Allocation | |||||||||||||
Fund | Fund | Fund | Fund | ** | ||||||||||||
Investment Income | ||||||||||||||||
Interest | $ | 4,100 | $ | 43,379 | $ | 418,687 | $ | 570 | ||||||||
Income from Securities Lending, net | 5,543 | 96,536 | 14,284 | — | ||||||||||||
Dividends, Net of Foreign Tax Withheld | 83,823 | 1,714,250 | 424,786 | — | ||||||||||||
Dividends from Affiliated Funds | — | — | — | 51,478 | ||||||||||||
Total Income | 93,466 | 1,854,165 | 857,757 | 52,048 | ||||||||||||
Expenses | ||||||||||||||||
Investment Advisory Fees | 15,151 | 969,755 | 397,139 | — | ||||||||||||
Transfer Agent and Administrative Fees | 10,312 | 269,377 | — | — | ||||||||||||
Audit and Outside Service Fees | 2,541 | 61,806 | — | — | ||||||||||||
Portfolio Accounting Fees | 4,125 | 107,751 | — | — | ||||||||||||
Registration Fees | 18 | 6,944 | — | — | ||||||||||||
Short Sales Dividend Expense | — | — | 229,327 | — | ||||||||||||
Trustees’ Fees* | 638 | 10,806 | — | — | ||||||||||||
Shareholder Service Fees | 10,312 | 269,377 | — | — | ||||||||||||
Custody Fees | 1,330 | 36,895 | — | 16 | ||||||||||||
Miscellaneous | 2,073 | 63,413 | — | — | ||||||||||||
Total Expenses | 46,500 | 1,796,124 | 626,466 | 16 | ||||||||||||
Less Expenses Waived by Advisor | — | — | — | — | ||||||||||||
Net Expenses | 46,500 | 1,796,124 | 626,466 | 16 | ||||||||||||
Net Investment Income (Loss) | 46,966 | 58,041 | 231,291 | 52,032 | ||||||||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investment Securities | (1,437,599 | ) | (37,950,846 | ) | (7,608,538 | ) | (60,345 | ) | ||||||||
Credit Default/Currency Index Swaps | — | — | (206,451 | ) | — | |||||||||||
Futures Contracts | 26,551 | — | (7,785,068 | ) | — | |||||||||||
Realized Gain Distributions Received from Affiliated Funds | — | — | — | 46,996 | ||||||||||||
Securities Sold Short | — | — | 6,741,743 | — | ||||||||||||
Written Options | — | — | 1,640,894 | — | ||||||||||||
Total Net Realized Gain (Loss) | (1,411,048 | ) | (37,950,846 | ) | (7,217,420 | ) | (13,349 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investment Securities | (138,343 | ) | (16,515,189 | ) | (1,372,006 | ) | (698,982 | ) | ||||||||
Credit Default/Currency Index Swaps | — | — | 11,668 | — | ||||||||||||
Futures Contracts | 4,141 | — | 760,043 | — | ||||||||||||
Securities Sold Short | — | — | 214,955 | — | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (134,202 | ) | (16,515,189 | ) | (385,340 | ) | (698,982 | ) | ||||||||
Net Gain (Loss) on Investments | (1,545,250 | ) | (54,466,035 | ) | (7,602,760 | ) | (712,331 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | $ | (1,498,284 | ) | $ | (54,407,994 | ) | $ | (7,371,469 | ) | $ | (660,299 | ) | ||||
Rebate Income on Proceeds for Securities Sold Short, | ||||||||||||||||
included in Interest | $ | — | $ | — | $ | 130,463 | $ | — | ||||||||
Foreign Tax Withheld | 22 | 28,618 | 90 | — |
* | Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act. | |
** | Since the commencement of operations: March 27, 2008 — International Rotation Fund; May 1, 2008 — Alternative Strategies Allocation Fund; November 7, 2008 — Managed Futures Strategy Fund. |
56 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Year Ended December 31, 2008
Managed | ||||||||||||||||||||||||||||
Futures | Strengthening | Weakening | ||||||||||||||||||||||||||
Commodities | Hedged | International | Strategy | Dollar 2x | Dollar 2x | |||||||||||||||||||||||
Strategy | Equity | Rotation | Fund | Real Estate | Strategy | Strategy | ||||||||||||||||||||||
Fund | Fund | Fund | ** | (Consolidated) | ** | Fund | Fund | Fund | ||||||||||||||||||||
$ | 990,332 | $ | 113,188 | $ | 67,238 | $ | 928 | $ | 1,845 | $ | 97,501 | $ | 255,196 | |||||||||||||||
24,141 | 3,286 | — | — | 56,308 | — | — | ||||||||||||||||||||||
— | 129,767 | 58,644 | — | 1,175,356 | — | — | ||||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||||
1,014,473 | 246,241 | 125,882 | 928 | 1,233,509 | 97,501 | 255,196 | ||||||||||||||||||||||
411,151 | 117,181 | 65,227 | 6,758 | 248,750 | 68,170 | 120,412 | ||||||||||||||||||||||
137,050 | — | 18,119 | 1,878 | 73,162 | 18,936 | 33,448 | ||||||||||||||||||||||
25,374 | — | 4,963 | 1,006 | 19,925 | 6,080 | 7,051 | ||||||||||||||||||||||
54,820 | — | 7,248 | 751 | 29,265 | 7,575 | 13,379 | ||||||||||||||||||||||
88 | — | 71 | 3,787 | 198 | 1,460 | 2,631 | ||||||||||||||||||||||
— | 81,259 | — | — | — | — | — | ||||||||||||||||||||||
5,229 | — | 476 | 6 | 4,540 | 607 | 1,377 | ||||||||||||||||||||||
137,050 | — | 18,119 | 1,878 | 73,162 | 18,936 | 33,448 | ||||||||||||||||||||||
14,563 | — | 696 | 246 | 8,595 | 2,110 | 3,593 | ||||||||||||||||||||||
33,673 | 1,460 | 4,758 | 652 | 14,617 | 4,514 | 8,735 | ||||||||||||||||||||||
818,998 | 199,900 | 119,677 | 16,962 | 472,214 | 128,388 | 224,074 | ||||||||||||||||||||||
(111,808 | ) | — | — | — | — | — | — | |||||||||||||||||||||
707,190 | 199,900 | 119,677 | 16,962 | 472,214 | 128,388 | 224,074 | ||||||||||||||||||||||
307,283 | 46,341 | 6,205 | (16,034 | ) | 761,295 | (30,887 | ) | 31,122 | ||||||||||||||||||||
(13,451,471 | ) | (1,906,705 | ) | (1,303,125 | ) | — | (13,156,711 | ) | — | — | ||||||||||||||||||
— | — | — | — | — | 276,598 | (326,750 | ) | |||||||||||||||||||||
— | (3,530,268 | ) | (3,317,579 | ) | (47,614 | ) | — | 1,275,165 | (2,288,149 | ) | ||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||||
— | 1,852,657 | — | — | — | — | — | ||||||||||||||||||||||
— | 798,828 | — | — | — | — | — | ||||||||||||||||||||||
(13,451,471 | ) | (2,785,488 | ) | (4,620,704 | ) | (47,614 | ) | (13,156,711 | ) | 1,551,763 | (2,614,899 | ) | ||||||||||||||||
(2,863,792 | ) | (411,529 | ) | 69,292 | — | (4,120,215 | ) | — | — | |||||||||||||||||||
— | — | — | — | — | (217,791 | ) | 198,607 | |||||||||||||||||||||
— | 270,127 | 485,847 | (122,214 | ) | — | (448,962 | ) | 583,673 | ||||||||||||||||||||
— | (28,234 | ) | — | — | — | — | — | |||||||||||||||||||||
(2,863,792 | ) | (169,636 | ) | 555,139 | (122,214 | ) | (4,120,215 | ) | (666,753 | ) | 782,280 | |||||||||||||||||
(16,315,263 | ) | (2,955,124 | ) | (4,065,565 | ) | (169,828 | ) | (17,276,926 | ) | 885,010 | (1,832,619 | ) | ||||||||||||||||
$ | (16,007,980 | ) | $ | (2,908,783 | ) | $ | (4,059,360 | ) | $ | (185,862 | ) | $ | (16,515,631 | ) | $ | 854,123 | $ | (1,801,497 | ) | |||||||||
$ | — | $ | 56,176 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
— | 505 | — | — | 4,659 | — | — |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 57 |
STATEMENTS OF CHANGES IN NET ASSETS
Multi-Cap | Sector Rotation | |||||||||||||||
Core Equity Fund | Fund | |||||||||||||||
Year | Year | Year | Year | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income (Loss) | $ | 46,966 | $ | 50,109 | $ | 58,041 | $ | (141,252 | ) | |||||||
Net Realized Gain (Loss) on Investments | (1,411,048 | ) | 103,836 | (37,950,846 | ) | 6,536,938 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (134,202 | ) | (528,643 | ) | (16,515,189 | ) | 10,979,956 | |||||||||
Net Increase (Decrease) in Net Assets from Operations | (1,498,284 | ) | (374,698 | ) | (54,407,994 | ) | 17,375,642 | |||||||||
Distributions to Shareholders from:** | ||||||||||||||||
Net Investment Income | (65,755 | ) | (47,289 | ) | — | — | ||||||||||
Realized Gain on Investments | (4,768 | ) | (627,576 | ) | (291,136 | ) | (9,242,522 | ) | ||||||||
Total Distributions to Shareholders | (70,523 | ) | (674,865 | ) | (291,136 | ) | (9,242,522 | ) | ||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 8,746,774 | 17,377,068 | 80,844,781 | 86,281,041 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 70,523 | 674,865 | 291,136 | 9,242,522 | ||||||||||||
Cost of Shares Redeemed | (11,352,016 | ) | (19,100,510 | ) | (84,164,328 | ) | (61,162,925 | ) | ||||||||
Net Increase (Decrease) in Net Assets From Share Transactions | (2,534,719 | ) | (1,048,577 | ) | (3,028,411 | ) | 34,360,638 | |||||||||
Net Increase (Decrease) in Net Assets | (4,103,526 | ) | (2,098,140 | ) | (57,727,541 | ) | 42,493,758 | |||||||||
Net Assets — Beginning of Period | 6,259,778 | 8,357,918 | 130,166,320 | 87,672,562 | ||||||||||||
Net Assets — End of Period | $ | 2,156,252 | $ | 6,259,778 | $ | 72,438,779 | $ | 130,166,320 | ||||||||
Undistributed Net Investment Income (Loss)—End of Period | $ | — | $ | 16,207 | $ | 58,031 | $ | — | ||||||||
* | Since commencement of operations: May 1, 2008 | |
** | For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains. |
58 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Absolute Return | Alternative Strategies | Commodities | ||||||||||||||||||
Strategies Fund | Allocation Fund | Strategy Fund | ||||||||||||||||||
Year | Year | Year | Year | Year | ||||||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
2008 | 2007 | 2008* | 2008 | 2007 | ||||||||||||||||
$ | 231,291 | $ | 982,074 | $ | 52,032 | $ | 307,283 | $ | 868,166 | |||||||||||
(7,217,420 | ) | (1,300,460 | ) | (13,349 | ) | (13,451,471 | ) | 2,653,291 | ||||||||||||
(385,340 | ) | 1,222,709 | (698,982 | ) | (2,863,792 | ) | 3,443,547 | |||||||||||||
(7,371,469 | ) | 904,323 | (660,299 | ) | (16,007,980 | ) | 6,965,004 | |||||||||||||
(182,633 | ) | (1,160,768 | ) | (57,472 | ) | (868,009 | ) | — | ||||||||||||
— | (299,606 | ) | (7,737 | ) | — | — | ||||||||||||||
(182,633 | ) | (1,460,374 | ) | (65,209 | ) | (868,009 | ) | — | ||||||||||||
47,170,223 | 58,867,136 | 7,459,676 | 104,615,008 | 58,614,571 | ||||||||||||||||
182,633 | 1,460,374 | 65,209 | 868,009 | — | ||||||||||||||||
(38,213,591 | ) | (50,892,241 | ) | (3,661,770 | ) | (116,449,304 | ) | (42,225,252 | ) | |||||||||||
9,139,265 | 9,435,269 | 3,863,115 | (10,966,287 | ) | 16,389,319 | |||||||||||||||
1,585,163 | 8,879,218 | 3,137,607 | (27,842,276 | ) | 23,354,323 | |||||||||||||||
31,436,531 | 22,557,313 | — | 43,623,593 | 20,269,270 | ||||||||||||||||
$ | 33,021,694 | $ | 31,436,531 | $ | 3,137,607 | $ | 15,781,317 | $ | 43,623,593 | |||||||||||
$ | 413,645 | $ | 135,808 | $ | — | $ | 234,352 | $ | 742,556 | |||||||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 59 |
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
International | ||||||||||||
Hedged Equity Fund | Rotation Fund | |||||||||||
Year | Year | Year | ||||||||||
Ended | Ended | Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2008 | 2007 | 2008 | * | |||||||||
From Operations | ||||||||||||
Net Investment Income (Loss) | $ | 46,341 | $ | 500,077 | $ | 6,205 | ||||||
Net Realized Gain (Loss) on Investments | (2,785,488 | ) | (870,707 | ) | (4,620,704 | ) | ||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (169,636 | ) | 492,130 | 555,139 | ||||||||
Net Increase (Decrease) in Net Assets from Operations | (2,908,783 | ) | 121,500 | (4,059,360 | ) | |||||||
Distributions to Shareholders from: | ||||||||||||
Net Investment Income | (199,366 | ) | (481,106 | ) | — | |||||||
Realized Gain on Investments | — | (155,142 | ) | — | ||||||||
Total Distributions to Shareholders | (199,366 | ) | (636,248 | ) | — | |||||||
Share Transactions | ||||||||||||
Proceeds from Shares Purchased | 20,651,001 | 31,887,844 | 36,068,454 | |||||||||
Value of Shares Purchased through Dividend Reinvestment | 199,366 | 636,248 | — | |||||||||
Cost of Shares Redeemed | (13,540,786 | ) | (34,837,609 | ) | (19,938,264 | ) | ||||||
Net Increase (Decrease) in Net Assets From Share Transactions | 7,309,581 | (2,313,517 | ) | 16,130,190 | ||||||||
Net Increase (Decrease) in Net Assets | 4,201,432 | (2,828,265 | ) | 12,070,830 | ||||||||
Net Assets—Beginning of Period | 10,508,921 | 13,337,186 | — | |||||||||
Net Assets—End of Period | $ | 14,710,353 | $ | 10,508,921 | $ | 12,070,830 | ||||||
Undistributed Net Investment Income (Loss)—End of Period | $ | 119,261 | $ | 199,366 | $ | 89,971 | ||||||
* | Since the commencement of operations: March 27, 2008 — International Rotation Fund; November 7, 2008 — Managed Futures Strategy Fund. |
60 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Managed Futures | ||||||||||||||||||||||||||||
Strategy Fund | Strengthening Dollar | Weakening Dollar | ||||||||||||||||||||||||||
(Consolidated) | Real Estate Fund | 2x Strategy Fund | 2x Strategy Fund | |||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | Year | ||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2008 | * | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||
$ | (16,034 | ) | $ | 761,295 | $ | 738,299 | $ | (30,887 | ) | $ | 109,851 | $ | 31,122 | $ | 305,987 | |||||||||||||
(47,614 | ) | (13,156,711 | ) | 5,595,169 | 1,551,763 | (570,238 | ) | (2,614,899 | ) | 1,286,126 | ||||||||||||||||||
(122,214 | ) | (4,120,215 | ) | (14,164,706 | ) | (666,753 | ) | 102,303 | 782,280 | (180,374 | ) | |||||||||||||||||
(185,862 | ) | (16,515,631 | ) | (7,831,238 | ) | 854,123 | (358,084 | ) | (1,801,497 | ) | 1,411,739 | |||||||||||||||||
— | (158,229 | ) | (801,864 | ) | — | — | — | (1,887,531 | ) | |||||||||||||||||||
— | (1,593,470 | ) | (3,999,999 | ) | — | — | — | — | ||||||||||||||||||||
— | (1,751,699 | ) | (4,801,863 | ) | — | — | — | (1,887,531 | ) | |||||||||||||||||||
13,398,186 | 91,378,382 | 138,815,523 | 72,985,664 | 41,147,482 | 83,354,318 | 46,842,262 | ||||||||||||||||||||||
— | 1,751,699 | 4,801,863 | — | — | — | 1,887,531 | ||||||||||||||||||||||
(6,799,535 | ) | (91,182,051 | ) | (182,408,436 | ) | (70,821,866 | ) | (39,850,297 | ) | (84,166,541 | ) | (45,830,646 | ) | |||||||||||||||
6,598,651 | 1,948,030 | (38,791,050 | ) | 2,163,798 | 1,297,185 | (812,223 | ) | 2,899,147 | ||||||||||||||||||||
6,412,789 | (16,319,300 | ) | (51,424,151 | ) | 3,017,921 | 939,101 | (2,613,720 | ) | 2,423,355 | |||||||||||||||||||
— | 31,756,584 | 83,180,735 | 4,005,655 | 3,066,554 | 13,578,839 | 11,155,484 | ||||||||||||||||||||||
$ | 6,412,789 | $ | 15,437,284 | $ | 31,756,584 | $ | 7,023,576 | $ | 4,005,655 | $ | 10,965,119 | $ | 13,578,839 | |||||||||||||||
$ | — | $ | 761,295 | $ | 175,005 | $ | — | $ | (149,355 | ) | $ | 2,388 | $ | (36,660 | ) | |||||||||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 61 |
FINANCIAL HIGHLIGHTS
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.
RATIOS TO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVERAGE NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Increase | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized | (Decrease) in | Net Assets, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSET | Net | and Unrealized | Net Asset | Distributions | Distributions | Net Increase | NET ASSET | Net | End of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
VALUE, | Investment | Gains | Value | from Net | from Net | (Decrease) in | VALUE, | Total | Investment | Portfolio | Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BEGINNING OF | Income | (Losses) on | Resulting from | Investment | Realized | Total | Net Asset | END OF | Investment | Total | Net | Operating | Income | Turnover | (000’s | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended | PERIOD | (Loss)† | Investments | Operations | Income§ | Gains§ | Distributions | Value | PERIOD | Return††† | Expenses | Expenses | Expenses†† | (Loss) | Rate | omitted) | ||||||||||||||||||||||||||||||||||||||||||||||||
Multi-Cap Core Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $24.64 | $ .24 | $ (9.88 | ) | $ (9.64 | ) | $ (.44 | ) | $ (.03 | ) | $ (.47 | ) | $ (10.11 | ) | $ 14.53 | (38.96 | )% | 1.13 | % | 1.13 | % | 1.13 | % | 1.14 | % | 373 | % | $ 2,156 | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | 28.60 | .16 | (1.63 | ) | (1.47 | ) | (.17 | ) | (2.32 | ) | (2.49 | ) | (3.96 | ) | 24.64 | (5.26 | )% | 1.27 | % | 1.27 | % | 1.27 | % | 0.55 | % | 245 | % | 6,260 | ||||||||||||||||||||||||||||||||||||
December 31, 2006 | 25.04 | .08 | 3.52 | 3.60 | (.01 | ) | (.03 | ) | (.04 | ) | 3.56 | 28.60 | 14.36 | % | 1.43 | % | 1.43 | % | 1.43 | % | 0.29 | % | 171 | % | 8,358 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005* | 25.00 | .01 | .03 | .04 | — | — | — | .04 | 25.04 | 0.16 | % | 1.67 | %** | 1.67 | %** | 1.67 | %** | 0.33 | %** | 8 | % | 2,860 | ||||||||||||||||||||||||||||||||||||||||||
Sector Rotation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 15.33 | .01 | (6.25 | ) | (6.24 | ) | — | (.04 | ) | (.04 | ) | (6.28 | ) | 9.05 | (40.73 | )% | 1.67 | % | 1.67 | % | 1.67 | % | 0.05 | % | 463 | % | 72,439 | |||||||||||||||||||||||||||||||||||||
December 31, 2007 | 13.47 | (.02 | ) | 3.10 | 3.08 | — | (1.22 | ) | (1.22 | ) | 1.86 | 15.33 | 22.75 | % | 1.61 | % | 1.61 | % | 1.61 | % | (0.15 | )% | 277 | % | 130,166 | |||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 12.68 | (.02 | ) | 1.48 | 1.46 | — | (.67 | ) | (.67 | ) | .79 | 13.47 | 11.47 | % | 1.64 | % | 1.64 | % | 1.64 | % | (0.16 | )% | 353 | % | 87,673 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 11.16 | (.02 | ) | 1.54 | 1.52 | — | — | — | 1.52 | 12.68 | 13.62 | % | 1.70 | % | 1.70 | % | 1.70 | % | (0.20 | )% | 281 | % | 61,834 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 10.08 | (.05 | ) | 1.13 | 1.08 | — | — | — | 1.08 | 11.16 | 10.71 | % | 1.63 | % | 1.63 | % | 1.63 | % | (0.52 | )% | 333 | % | 27,747 | |||||||||||||||||||||||||||||||||||||||||
Absolute Return Strategies Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 25.95 | .16 | (5.02 | ) | (4.86 | ) | (.12 | ) | — | (.12 | ) | (4.98 | ) | 20.97 | (18.72 | )% | 1.81 | % | 1.81 | % | 1.15 | % | 0.67 | % | 1,447 | % | 33,022 | |||||||||||||||||||||||||||||||||||||
December 31, 2007 | 26.20 | .74 | .27 | 1.01 | (1.00 | ) | (.26 | ) | (1.26 | ) | (.25 | ) | 25.95 | 3.84 | % | 1.69 | % | 1.69 | % | 1.17 | % | 2.72 | % | 421 | % | 31,437 | ||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 25.20 | .80 | .87 | 1.67 | (.30 | ) | (.37 | ) | (.67 | ) | 1.00 | 26.20 | 6.64 | % | 1.70 | % | 1.70 | % | 1.16 | % | 3.08 | % | 309 | % | 22,557 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005* | 25.00 | .05 | .15 | .20 | — | — | — | .20 | 25.20 | 0.80 | % | 1.45 | %** | 1.45 | %** | 1.20 | %** | 2.28 | %** | 19 | % | 3,323 | ||||||||||||||||||||||||||||||||||||||||||
Alternative Strategies Allocation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008* | 25.00 | .38 | (5.02 | ) | (4.64 | ) | (.39 | ) | (.05 | ) | (.44 | ) | (5.08 | ) | 19.92 | (18.55 | )% | 0.00 | %** | 0.00 | %** | 0.00 | %** | 2.47 | %** | 33 | % | 3,138 | ||||||||||||||||||||||||||||||||||||
Commodities Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 23.78 | .15 | (11.69 | ) | (11.54 | ) | (.77 | ) | — | (.77 | ) | (12.31 | ) | 11.47 | (49.02 | )% | 1.50 | % | 1.29 | % | 1.29 | % | 0.56 | % | 427 | % | 15,781 | |||||||||||||||||||||||||||||||||||||
December 31, 2007 | 18.15 | .71 | 4.92 | 5.63 | — | — | — | 5.63 | 23.78 | 31.02 | % | 1.48 | % | 1.28 | % | 1.28 | % | 3.52 | % | 346 | % | 43,624 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 22.10 | .50 | (4.45 | ) | (3.95 | ) | — | — | — | (3.95 | ) | 18.15 | (17.87 | )% | 1.50 | % | 1.31 | % | 1.31 | % | 2.34 | % | 109 | % | 20,269 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005* | 25.00 | .14 | (2.98 | ) | (2.84 | ) | (.06 | ) | — | (.06 | ) | (2.90 | ) | 22.10 | (11.34 | )% | 1.64 | %** | 1.64 | %** | 1.64 | %** | 2.41 | %** | — | 28,187 | ||||||||||||||||||||||||||||||||||||||
Hedged Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 25.54 | .10 | (6.20 | ) | (6.10 | ) | (.25 | ) | — | (.25 | ) | (6.35 | ) | 19.19 | (23.84 | )% | 1.96 | % | 1.96 | % | 1.16 | % | 0.45 | % | 1,362 | % | 14,710 | |||||||||||||||||||||||||||||||||||||
December 31, 2007 | 26.34 | .88 | (.03 | ) | .85 | (1.25 | ) | (.40 | ) | (1.65 | ) | (.80 | ) | 25.54 | 3.16 | % | 1.81 | % | 1.81 | % | 1.18 | % | 3.25 | % | 413 | % | 10,509 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 25.21 | .84 | 1.23 | 2.07 | (.33 | ) | (.61 | ) | (.94 | ) | 1.13 | 26.34 | 8.20 | % | 1.93 | % | 1.93 | % | 1.15 | % | 3.21 | % | 360 | % | 13,337 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005* | 25.00 | .04 | .20 | .24 | (.03 | ) | — | (.03 | ) | .21 | 25.21 | 0.94 | % | 1.96 | %** | 1.96 | %** | 1.19 | %** | 1.62 | %** | 10 | % | 3,376 | ||||||||||||||||||||||||||||||||||||||||
International Rotation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008* | 25.00 | .01 | (7.81 | ) | (7.80 | ) | — | — | — | (7.80 | ) | 17.20 | (31.20 | )% | 1.64 | %** | 1.64 | %** | 1.64 | %** | 0.09 | %** | 362 | % | 12,071 | |||||||||||||||||||||||||||||||||||||||
Managed Futures Strategy Fund (Consolidated) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008* | 25.00 | (.08 | ) | (.82 | ) | (.90 | ) | — | — | — | (.90 | ) | 24.10 | (3.60 | )% | 2.21 | %** | 2.21 | %** | 2.21 | %** | (2.09) | %** | — | 6,413 | |||||||||||||||||||||||||||||||||||||||
Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 34.35 | .79 | (15.47 | ) | (14.68 | ) | (.20 | ) | (1.96 | ) | (2.16 | ) | (16.84 | ) | 17.51 | (41.64 | )% | 1.62 | % | 1.62 | % | 1.62 | % | 2.61 | % | 288 | % | 15,437 | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | 50.25 | .63 | (10.02 | ) | (9.39 | ) | (1.09 | ) | (5.42 | ) | (6.51 | ) | (15.90 | ) | 34.35 | (19.12 | )% | 1.60 | % | 1.60 | % | 1.60 | % | 1.28 | % | 226 | % | 31,757 | ||||||||||||||||||||||||||||||||||||
December 31, 2006 | 40.30 | .72 | 11.68 | 12.40 | (.83 | ) | (1.62 | ) | (2.45 | ) | 9.95 | 50.25 | 30.72 | % | 1.60 | % | 1.60 | % | 1.60 | % | 1.54 | % | 532 | % | 83,181 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 38.02 | .71 | 2.01 | 2.72 | (.44 | ) | — | (.44 | ) | 2.28 | 40.30 | 7.15 | % | 1.59 | % | 1.59 | % | 1.59 | % | 1.84 | % | 774 | % | 29,074 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 30.25 | 1.02 | 7.79 | 8.81 | (.14 | ) | (.90 | ) | (1.04 | ) | 7.77 | 38.02 | 29.54 | % | 1.59 | % | 1.59 | % | 1.59 | % | 3.06 | % | 1,139 | % | 26,915 | |||||||||||||||||||||||||||||||||||||||
Strengthening Dollar 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 20.13 | (.08 | ) | 1.20 | 1.12 | — | — | — | 1.12 | 21.25 | 5.56 | % | 1.69 | % | 1.69 | % | 1.69 | % | (0.41 | )% | -- | 7,024 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2007 | 22.59 | .70 | (3.16 | ) | (2.46 | ) | — | — | — | (2.46 | ) | 20.13 | (10.89 | )% | 1.61 | % | 1.61 | % | 1.61 | % | 3.26 | % | — | 4,006 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2006 | 25.62 | .79 | (3.51 | ) | (2.72 | ) | (.31 | ) | — | (.31 | ) | (3.03 | ) | 22.59 | (10.63 | )% | 1.65 | % | 1.65 | % | 1.65 | % | 3.33 | % | — | 3,067 | ||||||||||||||||||||||||||||||||||||||
December 31, 2005* | 25.00 | .14 | .65 | .79 | (.17 | ) | — | (.17 | ) | .62 | 25.62 | 3.16 | % | 1.78 | %** | 1.78 | %** | 1.78 | %** | 2.11 | %** | — | 1,250 |
62 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (concluded)
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.
RATIOS TO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVERAGE NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Increase | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized | (Decrease) in | Net Assets, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSET | and Unrealized | Net Asset | Distributions | Distributions | Net Increase | NET ASSET | End of | |||||||||||||||||||||||||||||||||||||||||||||||||
VALUE, | Net | Gains | Value | from Net | from Net | (Decrease) in | VALUE, | Total | Net | Portfolio | Period | |||||||||||||||||||||||||||||||||||||||||||||
BEGINNING OF | Investment | (Losses) on | Resulting from | Investment | Realized | Total | Net Asset | END OF | Investment | Total | Investment | Turnover | (000’s | |||||||||||||||||||||||||||||||||||||||||||
Year Ended | PERIOD | Income† | Investments | Operations | Income | Gains | Distributions | Value | PERIOD | Return††† | Expenses | Income | Rate | omitted) | ||||||||||||||||||||||||||||||||||||||||||
Weakening Dollar 2x Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $28.60 | $.07 | $(3.57 | ) | $(3.50 | ) | $ — | $ — | $ — | $(3.50 | ) | $25.10 | (12.24 | )% | 1.68 | % | 0.23 | % | — | $10,965 | ||||||||||||||||||||||||||||||||||||
December 31, 2007 | 27.51 | .89 | 4.15 | 5.04 | (3.95 | ) | — | (3.95 | ) | 1.09 | 28.60 | 18.12 | % | 1.64 | % | 3.02 | % | — | 13,579 | |||||||||||||||||||||||||||||||||||||
December 31, 2006 | 24.31 | .93 | 3.14 | 4.07 | (.86 | ) | (.01 | ) | (.87 | ) | 3.20 | 27.51 | 16.72 | % | 1.65 | % | 3.46 | % | — | 11,155 | ||||||||||||||||||||||||||||||||||||
December 31, 2005* | 25.00 | .15 | (.78 | ) | (.63 | ) | (.06 | ) | — | (.06 | ) | (.69 | ) | 24.31 | (2.53 | )% | 1.76 | %** | 2.28 | %** | — | 2,954 |
* | Since the commencement of operations: September 30, 2005 — Commodities Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund; November 29, 2005 — Absolute Return Strategies Fund, Hedged Equity Fund, and Multi-Cap Core Equity Fund; March 27, 2008 — International Rotation Fund; May 1, 2008 — Alternative Strategies Allocation Fund; November 7, 2008 — Managed Futures Strategy Fund. | |
** | Annualized | |
† | Calculated using the average daily shares outstanding for the year. | |
†† | Operating Expenses exclude short dividends expense. | |
††† | Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized. | |
§ | For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 63
NOTES TO FINANCIAL STATEMENTS
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 no par value shares. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.At December 31, 2008, the Trust consisted of fifty-eight separate funds. This report covers the Alternative Strategy Funds (the “Funds”), while the other funds are contained in separate reports.
The Alternative Strategies Allocation Fund is a “fund of funds,” which means that the Fund seeks to achieve its investment objective by investing primarily in other Rydex mutual funds (the “underlying funds”) instead of individual securities.
Valu-Trac Investment Management Limited serves as the investment sub-advisor to the International Rotation Fund and is responsible for the development and on-going maintenance of the investment management strategy utilized by that Fund.
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.
Consolidation of Subsidiary
For the Managed Futures Strategy Fund (“MFS”), the consolidated financial statements include the accounts of its wholly-owned and controlled Cayman Islands subsidiary (“the Subsidiary”). Significant intercompany accounts and transactions have been eliminated in consolidation.
MFS may invest up to 25% of its total assets in the Subsidiary which acts as an investment vehicle in order to effect certain investments consistent with MFS’s investment objectives and policies. A subscription agreement was entered into between MFS and the Subsidiary on November 7, 2008, comprising the entire issued share capital of the Subsidiary with the intent that MFS will remain the sole shareholder and retain all rights. At December 31, 2008, net assets of MFS were approximately $6.4 million, of which approximately $0.9 million, or approximately 13%, represented MFS’s ownership of all issued shares and voting rights of the Subsidiary.
Significant Accounting Policies
The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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. 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. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.
Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, as of 4:00 p.m. Long options are valued using the bid price and short options are valued using the ask price. In the event that a settlement price is not available, fair valuation is enacted. Over-the-counter options held by the Trust are valued using the average bid price (for long options), or average ask price (for short options) 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 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.
Debt securities in a non 2a-7 money market fund with a maturity greater than 60 days are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a security is valued at the reported bid price, at the close of business. Short-term debt securities, with a maturity of 60 days or less are valued at amortized cost, which approximates market value.
Open-ended investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, 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 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. 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 index 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
64 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
which orders are being filled at the close of the NYSE. 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.
Structured notes are valued in accordance with the terms of their agreements 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.
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. Taxable non-cash dividends are recorded as dividend income. 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 of net investment income and net realized gains, 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. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.
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 over-the-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,
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 65
NOTES TO FINANCIAL STATEMENTS (continued)
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 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.
H. The Trust may invest in structured notes, which are over-the-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 discount rates paid 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, 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. 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, 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.
66 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
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 the 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, 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 counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.
3. Call Options Written
Transactions in options written during the year ended December 31, 2008, were as follows:
Absolute Return Strategies Fund | Hedged Equity Fund | |||||||||||||||
Number of | Premiums | Number of | Premiums | |||||||||||||
Contracts | Received | Contracts | Received | |||||||||||||
Options outstanding at December 31, 2007 | — | $ | — | — | $ | — | ||||||||||
Options written | 1,989 | 3,737,355 | 636 | 1,822,094 | ||||||||||||
Options terminated in closing purchase transactions | (882 | ) | (2,583,863 | ) | (178 | ) | (1,145,901 | ) | ||||||||
Options expired | (767 | ) | (880,741 | ) | (202 | ) | (469,054 | ) | ||||||||
Options exercised | (250 | ) | (54,180 | ) | (240 | ) | (38,400 | ) | ||||||||
Options outstanding at December 31, 2008 | 90 | $ | 218,571 | 16 | $ | 168,739 |
4. 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 0.75% of the average daily net assets of the Commodities Strategy Fund; 0.85% of the average daily net assets of the Real Estate Fund; 0.90% of the average daily net assets of the Sector Rotation Fund, the International Rotation Fund, the Managed Futures Strategy Fund, the Strengthening Dollar 2x Strategy Fund and the Weakening Dollar 2x Strategy Fund; and
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 67
NOTES TO FINANCIAL STATEMENTS (continued)
1.15% of the average daily net assets of the Absolute Return Strategies Fund and the Hedged Equity Fund. The Alternative Strategies Allocation Fund does not pay Rydex Investments a management fee.
Also under the terms of the investment advisory contract, the Trustees voted to implement a performance adjustment for the Multi-Cap Core Equity Fund which pays Rydex Investments an investment advisory fee calculated at a basic annual fee rate of 0.70% of the average daily net assets of this Fund, adding or subtracting a performance rate up to 0.20%. The basic annual fee rate, along with the performance adjustment allows the total fee to increase to a maximum of 0.90% or decrease to a minimum of 0.50%, depending on the investment performance of the Fund relative to the Russell 3000 Index (the “Index”). The performance comparison will be made for a rolling 12 month period, with performance adjustments made at the end of each month. Because the performance adjustment is applied relative to the performance of the Index, Rydex Investments could receive a positive performance adjustment even during periods where the Fund’s performance is negative. At December 31, 2008, the effective management fee was 0.50% of the Fund’s average daily net assets.
Effective May 1, 2006, Rydex Investments has contractually agreed to waive its advisory fee to the extent necessary to limit the ordinary operating expenses of the Commodities Strategy Fund (but excluding interest expenses, brokerage commissions and extraordinary expenses) to not more than 1.29% per annum of the average monthly net assets of the Fund (the “Contractual Fee Waiver”). The Contractual Fee Waiver may not be modified or eliminated prior to May 1, 2009, except with the approval of the Board of Trustees. There is no guarantee that the contractual fee waiver will continue beyond May 1, 2009.
As part of its agreement with the Trust, Rydex Investments will pay all expenses of the Absolute Return Strategies Fund and Hedged Equity Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with execution of portfolio transactions, short dividend expenses, and extraordinary expenses.
Rydex Investments manages the investment and reinvestment of the assets of the Alternative Strategies Allocation Fund in accordance with the investment objectives, policies, and limitations of the Fund. As part of its agreement with the Trust, Rydex Investments will pay all expenses of the Fund, including the cost of transfer agency, fund administration, audit and other services, excluding interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the execution of portfolio transactions, short dividend expenses, and extraordinary expenses. The Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other underlying fund expenses) of the underlying funds in which the Fund invests.
Rydex Investments provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each Fund. Fees related to the Absolute Return Strategies, Hedged Equity and Alternative Strategies Allocation Funds are paid by Rydex Investments, as previously noted.
Rydex Investments provides accounting services to the Trust 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. Fees related to the Absolute Return Strategies, Hedged Equity and Alternative Strategies Allocation Funds are paid by Rydex Investments, as previously noted.
Rydex Investments engages external service providers to perform other necessary services for the Trust, such as audit and accounting 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. Certain expenses allocated to the Absolute Return Strategies, Hedged Equity and Alternative Strategies Allocation Funds are paid by Rydex Investments, as previously noted. Organizational and setup costs for new funds are paid by the Trust.
The Trust has adopted an Investor 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.
5. 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.
Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-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 (fiscal years 2005 — 2008), and has concluded that no provision for income tax is required in the Funds’ financial statements.
68 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
The MFS Fund intends to invest up to 25% of its assets in the Subsidiary which is expected to provide the Fund with exposure to the commodities markets within the limitations of the federal tax requirement under Subchapter M of the Code. The MFS Fund has received a private letter ruling from the IRS that concludes that the income the MFS Fund receives from the Subsidiary will constitute qualifying income for purposes of Subchapter M of the Code. The Subsidiary will be classified as a corporation for U.S. federal income tax purposes. A foreign corporation, such as the Subsidiary, will generally not be subject to U.S. federal income taxation unless it is deemed to be engaged in a U.S. trade or business.
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 losses deferred due to wash sales, losses deferred due to post-October losses, constructive sales, unsettled short sales 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. 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’ tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.
The tax character of distributions paid during the year ended December 31, 2008, was as follows:
Ordinary | Long-Term | Return of | Total | |||||||||||||
Fund | Income | Capital Gain | Capital | Distributions | ||||||||||||
Multi-Cap Core Equity Fund | $ | 67,381 | $ | 854 | $ | 2,288 | $ | 70,523 | ||||||||
Sector Rotation Fund | 172,587 | 118,549 | — | 291,136 | ||||||||||||
Absolute Return Strategies Fund | 182,633 | — | — | 182,633 | ||||||||||||
Alternative Strategies Allocation Fund | 59,769 | 5,440 | — | 65,209 | ||||||||||||
Commodities Strategy Fund | 868,009 | — | — | 868,009 | ||||||||||||
Hedged Equity Fund | 199,366 | — | — | 199,366 | ||||||||||||
International Rotation Fund | — | — | — | — | ||||||||||||
Managed Futures Strategy Fund | — | — | — | — | ||||||||||||
Real Estate Fund | 566,262 | 1,185,437 | — | 1,751,699 | ||||||||||||
Strengthening Dollar 2x Strategy Fund | — | — | — | — | ||||||||||||
Weakening Dollar 2x Strategy Fund | — | — | — | — | ||||||||||||
The tax character of distributions paid during the year ended December 31, 2007, was as follows: | ||||||||||||||||
Ordinary | Long-Term | Total | ||||||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||||||
Multi-Cap Core Equity Fund | $ | 459,022 | $ | 215,843 | $ | 674,865 | ||||||||||
Sector Rotation Fund | 6,533,253 | 2,709,269 | 9,242,522 | |||||||||||||
Absolute Return Strategies Fund | 1,347,557 | 112,817 | 1,460,374 | |||||||||||||
Commodities Strategy Fund | — | — | — | |||||||||||||
Hedged Equity Fund | 544,568 | 91,680 | 636,248 | |||||||||||||
Real Estate Fund | 2,801,863 | 2,000,000 | 4,801,863 | |||||||||||||
Strengthening Dollar 2x Strategy Fund | — | — | — | |||||||||||||
Weakening Dollar 2x Strategy Fund | 1,887,531 | — | 1,887,531 | |||||||||||||
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows: | ||||||||||||||||
Undistributed | Undistributed | Net Unrealized | ||||||||||||||
Ordinary | Long-Term | Appreciation | Capital Loss | |||||||||||||
Fund | Income | Capital Gain | (Depreciation) | Carryforward | ||||||||||||
Multi-Cap Core Equity Fund | $ | — | $ | — | $ | (439,816 | ) | $ | (1,071,208 | )1 | ||||||
Sector Rotation Fund | 58,031 | — | (1,509,627 | ) | (36,065,702 | )1 | ||||||||||
Absolute Return Strategies Fund | 431,428 | — | (2,449,466 | ) | (5,544,011 | )1 | ||||||||||
Alternative Strategies Allocation Fund | — | 17,968 | (743,476 | ) | — | |||||||||||
Commodities Strategy Fund | 240,716 | — | (1,651,379 | ) | (8,628,326 | )1 | ||||||||||
Hedged Equity Fund | 119,333 | — | (732,995 | ) | (2,553,289 | )1 | ||||||||||
International Rotation Fund | 89,971 | — | 197,044 | (3,673,745 | )1 | |||||||||||
Managed Futures Strategy Fund | — | — | (52,712 | ) | — | |||||||||||
Real Estate Fund | 761,296 | — | (12,605,205 | ) | (4,319,531 | )1 | ||||||||||
Strengthening Dollar 2x Strategy Fund | 830,466 | 1,532,863 | — | — | ||||||||||||
Weakening Dollar 2x Strategy Fund | 2,388 | — | — | (2,089,895 | )1 |
Capital Loss Carryforward amounts may be limited due to Treasury Regulations.
1 | A summary of the expiration of the afore mentioned Capital Loss Carryforward is as follows: |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 69
NOTES TO FINANCIAL STATEMENTS (continued)
Total | ||||||||||||||||
Expires in | Expires in | Expires in | Capital Loss | |||||||||||||
Fund | 2014 | 2015 | 2016 | Carryforward | ||||||||||||
Multi-Cap Core Equity Fund | $ | — | $ | — | $ | (1,071,208 | ) | $ | (1,071,208 | ) | ||||||
Sector Rotation Fund | — | — | (36,065,702 | ) | (36,065,702 | ) | ||||||||||
Absolute Return Strategies Fund | — | (114,736 | ) | (5,429,275 | ) | (5,544,011 | ) | |||||||||
Commodities Strategy Fund | (3,821,179 | ) | — | (4,807,147 | ) | (8,628,326 | ) | |||||||||
Hedged Equity Fund | — | (324,447 | ) | (2,228,842 | ) | (2,553,289 | ) | |||||||||
International Rotation Fund | — | — | (3,673,745 | ) | (3,673,745 | ) | ||||||||||
Real Estate Fund | — | — | (4,319,531 | ) | (4,319,531 | ) | ||||||||||
Weakening Dollar 2x Strategy Fund | — | — | (2,089,895 | ) | (2,089,895 | ) |
At December 31, 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:
Tax | Tax | Net | ||||||||||||||
Tax | Unrealized | Unrealized | Unrealized | |||||||||||||
Fund | Cost | Gain | Loss | Gain (Loss) | ||||||||||||
Multi-Cap Core Equity Fund | $ | 2,567,643 | $ | — | $ | (439,816 | ) | $ | (439,816 | ) | ||||||
Sector Rotation Fund | 73,373,386 | 1,652,311 | (3,161,938 | ) | (1,509,627 | ) | ||||||||||
Absolute Return Strategies Fund | 27,054,962 | — | (2,869,785 | ) | (2,869,785 | ) | ||||||||||
Alternative Strategies Allocation Fund | 3,877,059 | 5,100 | (748,576 | ) | (743,476 | ) | ||||||||||
Commodities Strategy Fund | 17,724,861 | — | (1,651,379 | ) | (1,651,379 | ) | ||||||||||
Hedged Equity Fund | 9,924,411 | — | (827,985 | ) | (827,985 | ) | ||||||||||
International Rotation Fund | 10,701,752 | — | (224,155 | ) | (224,155 | ) | ||||||||||
Managed Futures Strategy Fund | 6,463,321 | — | — | — | ||||||||||||
Real Estate Fund | 27,935,752 | — | (12,605,205 | ) | (12,605,205 | ) | ||||||||||
Strengthening Dollar 2x Strategy Fund | 6,722,259 | — | — | — | ||||||||||||
Weakening Dollar 2x Strategy Fund | 9,505,791 | — | — | — |
Post-October Losses Deferred
Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax year. For the year ended December 31, 2008, the following amounts of realized capital and currency losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2009:
Fund | Capital | |||
Multi-Cap Core Equity Fund | $ | (330,021 | ) | |
Absolute Return Strategies Fund | (235,986 | ) | ||
Commodities Strategy Fund | (7,710,489 | ) | ||
Hedged Equity Fund | (295,951 | ) | ||
International Rotation Fund | (672,630 | ) | ||
Managed Futures Strategy Fund | (117,116 | ) | ||
Strengthening Dollar 2x Strategy Fund | (1,542,602 | ) |
6. 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 to ensure that its market value exceeds, 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 at December 31, 2008, were as follows:
Counterparty | Terms of Agreement | Face Value | Market Value | Repurchase Price | ||||||||||||
Credit Suisse Group | 0.03% due 01/02/09 | $49,841,465 | $49,841,465 | $49,841,548 | ||||||||||||
Mizuho Financial Group, Inc. | 0.02% due 01/02/09 | 45,000,000 | 45,000,000 | 45,000,050 | ||||||||||||
Morgan Stanley | 0.01% due 01/02/09 | 45,000,000 | 45,000,000 | 45,000,025 | ||||||||||||
UBS Financial Services | 0.01% due 01/02/09 | 45,000,000 | 45,000,000 | 45,000,025 | ||||||||||||
$184,841,465 | $184,841,648 | |||||||||||||||
70 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008, the collateral for the repurchase agreements in the joint account was as follows:
Security Type | Maturity Dates | Range of Rates | Par Value | Market Value | ||||||||||||
U.S. Treasury Notes | 08/31/09 - 08/15/18 | 1.500% - 5.125 | % | $ | 69,022,000 | $ | 76,858,108 | |||||||||
U.S. Treasury Bill | 05/07/09 | — | 45,906,500 | 45,900,073 | ||||||||||||
U.S. TIP Bond | 01/15/26 | 2.000% | 43,599,000 | 45,900,318 | ||||||||||||
U.S. TIP Note | 01/15/10 | 4.250% | 15,365,000 | 19,837,560 | ||||||||||||
U.S. Treasury Bond | 02/15/19 - 05/15/30 | 6.250% - 8.875 | % | 31,000 | 47,724 | |||||||||||
$ | 188,543,783 | |||||||||||||||
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.
7. Fair Value Measurement
Effective January 1, 2008, the Funds adopted 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 following table summarizes the inputs used to value the Funds’ net assets at December 31, 2008:
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Level 1 | Other | Level 2 | Other | Level 3 | Other | |||||||||||||||||||||||
Investments | Financial | Investments | Financial | Investments | Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | * | In Securities | Instruments | * | In Securities | Instruments | * | Total | ||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Multi-Cap Core Equity Fund | $ | 2,127,827 | $ | 4,141 | $ | — | $ | — | $ | — | $ | — | $ | 2,131,968 | ||||||||||||||
Sector Rotation Fund | 71,863,759 | — | — | — | — | — | 71,863,759 | |||||||||||||||||||||
Absolute Return Strategies Fund | 24,185,177 | 228,149 | — | 373,780 | — | — | 24,787,106 | |||||||||||||||||||||
Alternative Strategies | ||||||||||||||||||||||||||||
Allocation Fund | 3,133,583 | — | — | — | — | — | 3,133,583 | |||||||||||||||||||||
Commodities Strategy Fund | 9,181,575 | — | 6,891,907 | — | — | — | 16,073,482 | |||||||||||||||||||||
Hedged Equity Fund | 9,096,426 | 167,785 | — | 74,408 | — | — | 9,338,619 | |||||||||||||||||||||
International Rotation Fund | 10,477,597 | — | — | 485,847 | — | — | 10,963,444 | |||||||||||||||||||||
Managed Futures Strategy Fund | 6,463,321 | 19,551 | — | — | — | — | 6,482,872 | |||||||||||||||||||||
Real Estate Fund | 15,330,547 | — | — | — | — | — | 15,330,547 | |||||||||||||||||||||
Strengthening Dollar 2x | ||||||||||||||||||||||||||||
Strategy Fund | 3,722,291 | — | 2,999,968 | — | — | — | 6,722,259 | |||||||||||||||||||||
Weakening Dollar 2x Strategy Fund | 8,005,820 | — | 1,499,971 | 583,674 | — | — | 10,089,465 | |||||||||||||||||||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 71
NOTES TO FINANCIAL STATEMENTS (continued)
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Level 1 | Other | Level 2 | Other | Level 3 | Other | |||||||||||||||||||||||
Investments | Financial | Investments | Financial | Investments | Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | * | In Securities | Instruments | * | In Securities | Instruments | * | Total | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Multi-Cap Core Equity Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Sector Rotation Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Absolute Return Strategies Fund | 8,590,871 | — | — | — | — | — | 8,590,871 | |||||||||||||||||||||
Alternative Strategies | ||||||||||||||||||||||||||||
Allocation Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Commodities Strategy Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Hedged Equity Fund | 2,935,070 | — | — | — | — | — | 2,935,070 | |||||||||||||||||||||
International Rotation Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Managed Futures Strategy Fund | — | — | — | 141,765 | — | — | 141,765 | |||||||||||||||||||||
Real Estate Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Strengthening Dollar 2x | ||||||||||||||||||||||||||||
Strategy Fund | — | — | — | 550,794 | — | — | 550,794 | |||||||||||||||||||||
Weakening Dollar 2x Strategy Fund | — | — | — | 50,744 | — | — | 50,744 |
* | Other Financial Instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end. |
8. Securities Transactions
For the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
Multi-Cap | Absolute | Alternative | ||||||||||||||||||||||
Core Equity | Sector | Return | Strategies | Commodities | Hedged Equity | |||||||||||||||||||
Fund | Rotation Fund | Strategies Fund | Allocation Fund | Strategy Fund | Fund | |||||||||||||||||||
Purchases | $ | 14,561,380 | $ | 491,772,250 | $ | 259,108,778 | $ | 4,566,878 | $ | 115,315,787 | $ | 73,983,437 | ||||||||||||
Sales | $ | 17,245,776 | $ | 491,301,189 | $ | 255,414,499 | $ | 1,015,761 | $ | 114,577,156 | $ | 72,171,543 | ||||||||||||
Managed | Strengthening | Weakening | ||||||||||||||||||||||
International | Futures | Real Estate | Dollar 2x | Dollar 2x | ||||||||||||||||||||
Rotation Fund | Strategy Fund | Fund | Strategy Fund | Strategy Fund | ||||||||||||||||||||
Purchases | $ | 10,737,568 | $ | — | $ | 84,892,801 | $ | — | $ | — | ||||||||||||||
Sales | $ | 7,879,631 | $ | — | $ | 83,521,532 | $ | — | $ | — |
72 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued)
9. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:
Purchased through | Net Shares | |||||||||||||||||||||||||||||||
Shares Purchased | Dividend Reinvestment | Shares Redeemed | Purchased (Redeemed) | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Multi-Cap Core Equity Fund | 418,904 | 593,772 | 5,220 | 26,962 | (529,721 | ) | (658,918 | ) | (105,597 | ) | (38,184 | ) | ||||||||||||||||||||
Sector Rotation Fund | 6,296,915 | 5,545,419 | 31,993 | 594,757 | (6,818,374 | ) | (4,156,364 | ) | (489,466 | ) | 1,983,812 | |||||||||||||||||||||
Absolute Return Strategies Fund | 1,975,336 | 2,178,075 | 8,961 | 56,017 | (1,621,124 | ) | (1,883,864 | ) | 363,173 | 350,228 | ||||||||||||||||||||||
Alternative Strategies Allocation Fund* | 311,690 | — | 3,305 | — | (157,495 | ) | — | 157,500 | — | |||||||||||||||||||||||
Commodities Strategy Fund | 4,158,528 | 2,868,931 | 64,154 | — | (4,680,834 | ) | (2,151,804 | ) | (458,152 | ) | 717,127 | |||||||||||||||||||||
Hedged Equity Fund | 962,427 | 1,166,016 | 10,667 | 24,651 | (617,859 | ) | (1,285,651 | ) | 355,235 | (94,984 | ) | |||||||||||||||||||||
International Rotation Fund** | 1,576,225 | — | — | — | (874,549 | ) | — | 701,676 | — | |||||||||||||||||||||||
Managed Futures Strategy Fund*** | 537,705 | — | — | — | (271,623 | ) | �� | 266,082 | — | |||||||||||||||||||||||
Real Estate Fund | 2,996,630 | 2,845,450 | 117,564 | 135,036 | (3,157,297 | ) | (3,711,330 | ) | (43,103 | ) | (730,844 | ) | ||||||||||||||||||||
Strengthening Dollar 2x Strategy Fund | 3,732,267 | 1,926,266 | — | — | (3,600,795 | ) | (1,862,970 | ) | 131,472 | 63,296 | ||||||||||||||||||||||
Weakening Dollar 2x Strategy Fund | 2,983,339 | 1,565,858 | — | 65,042 | (3,021,150 | ) | (1,561,649 | ) | (37,811 | ) | 69,251 |
* | Since the inception date: May 1, 2008. | |
** | Since the inception date: March 27, 2008. | |
*** | Since the inception date: November 7, 2008. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 73
NOTES TO FINANCIAL STATEMENTS (concluded)
10. Portfolio Securities Loaned
During the year ended December 31, 2008, certain Funds lent 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. As of December 31, 2008, all Funds had ceased participation in securities lending.
11. Change in Independent Registered Public Accounting Firm
The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.
12. 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. Management is evaluating the impact of FAS 161 on its current disclosures.
74 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
of the Rydex Variable Trust:
of the Rydex Variable Trust:
We have audited the accompanying statements of assets and liabilities of Multi-Cap Core Equity Fund, Sector Rotation Fund, Absolute Return Strategies Fund, Alternative Strategies Allocation Fund, Commodities Strategy Fund, Hedged Equity Fund, International Rotation Fund, Managed Futures Strategy Fund (Consolidated), Real Estate Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (eleven of the series constituting the Rydex Variable Trust) (the “Funds”) including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets for the year ended December 31, 2007 and the financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 26, 2008 expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.
McLean, Virginia
February 26, 2009
February 26, 2009
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 75
OTHER INFORMATION (Unaudited)
Tax Information
This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.
This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.
Of the ordinary income distributions paid during the year, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:
Fund | %Qualifying | ||||
Multi-Cap Core Equity Fund | 80.83 | % | |||
Sector Rotation Fund | 10.67 | % | |||
Absolute Return Strategies Fund | 24.48 | % | |||
Hedged Equity Fund | 17.68 | % |
The Funds’ distributions to shareholders included:
Multi-Cap | Sector | Real | ||||||||||
Core Equity | Rotation | Estate | ||||||||||
Fund | Fund | Fund | ||||||||||
From long-term capital gains, subject to the 15% rate gains category: | $ | 854 | $ | 118,549 | $ | 1,185,437 |
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.
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.
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.
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.
76 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
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
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Carl G. Verboncoeur* | Rydex Series Funds – 2004 | 160 | ||
Trustee, President (1952) | Rydex Variable Trust – 2004 | |||
Rydex Dynamic Funds – 2004 | ||||
Rydex ETF Trust – 2004 | ||||
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) | ||||
Michael P. Byrum* | Rydex Series Funds – 2005 | 160 | ||
Trustee, Vice President | Rydex Variable Trust – 2005 | |||
(1970) | Rydex Dynamic Funds – 2005 | |||
Rydex ETF Trust – 2005 |
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
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
John O. Demaret | Rydex Series Funds – 1997 | 151 | ||
Trustee, Chairman of the | Rydex Variable Trust – 1998 | |||
Board (1940) | Rydex Dynamic Funds – 1999 | |||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Retired | ||||
Corey A. Colehour | Rydex Series Funds – 1993 | 151 | ||
Trustee (1945) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
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 | Rydex Series Funds – 1995 | 151 | ||
Trustee (1941) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group | ||||
Werner E. Keller | Rydex Series Funds – 2005 | 151 | ||
Trustee (1940) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 | ||||
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001) | ||||
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 77
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Thomas F. Lydon, Jr. | Rydex Series Funds – 2005 | 151 | ||
Trustee (1960) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 | ||||
Principal Occupations During Past Five Years: President, Global Trends Investments | ||||
Patrick T. McCarville | Rydex Series Funds – 1997 | 151 | ||
Trustee (1942) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc. | ||||
Roger Somers | Rydex Series Funds – 1993 | 151 | ||
Trustee (1944) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 | ||||
Principal Occupations During Past Five Years: Owner, Arrow Limousine | ||||
EXECUTIVE OFFICERS
Name, Position and | Principal Occupations | |
Year of Birth | During Past Five Years | |
Nick Bonos* Vice President and Treasurer (1963) | 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. |
78 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAALTS-ANN-2-1208x1209
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAALTS-ANN-2-1208x1209
GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888. |
This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Distributed by Rydex Distributors, Inc.
TABLE OF CONTENTS
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1 |
LETTER TO OUR SHAREHOLDERS
DEAR SHAREHOLDER:
Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.
Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.
Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.
It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases), home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.
Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500® Index’s 37.0% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.
Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP. Investing in both alternative investments and alternative strategies were used to opportunistically adjust the Fund’s beta to associated market risk and reduce any additional risk for the long-term.
The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.
In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.
We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.
Sincerely,
/s/ Michael Byrum Michael Byrum
President & Chief Investment Officer
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
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THE RYDEX VARIABLE TRUST ANNUAL REPORT | 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. Shareholders of a Fund 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 June 30, 2008 and ending December 31, 2008.
The following tables illustrate a Fund’s costs in two ways:
Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses 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. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”
Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a 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 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. Investors can assess a 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 a 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 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)
Beginning | Ending | Expenses | ||||||||||||||
Expense | Account Value | Account Value | Paid During | |||||||||||||
Ratio | † | June 30, 2008 | December 31, 2008 | Period | * | |||||||||||
Table 1. Based on actual Fund return | ||||||||||||||||
Essential Portfolio Conservative Fund | 0.00% | $1,000.00 | $ 912.30 | $ — | ||||||||||||
Essential Portfolio Moderate Fund | 0.00% | 1,000.00 | 855.50 | — | ||||||||||||
Essential Portfolio Aggressive Fund | 0.00% | 1,000.00 | 792.60 | — | ||||||||||||
Table 2. Based on hypothetical 5% return (before expenses) | ||||||||||||||||
Essential Portfolio Conservative Fund | 0.00% | 1,000.00 | 1,025.14 | — | ||||||||||||
Essential Portfolio Moderate Fund | 0.00% | 1,000.00 | 1,025.14 | — | ||||||||||||
Essential Portfolio Aggressive Fund | 0.00% | 1,000.00 | 1,025.14 | — |
* | 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 number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies. | |
† | Annualized and excludes expenses of the underlying funds in which the Funds invest. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)
ESSENTIAL PORTFOLIO CONSERVATIVE FUND
OBJECTIVE: The Essential Portfolio Conservative Fund’s objective is to seek preservation of capital and, secondarily, long-term growth of capital by investing principally in a diversified portfolio of underlying funds.
Inception: October 27, 2006
The one-year period ending December 31, 2008 was a difficult one with the stock market going through turbulence unseen in the past several decades. The three Rydex Essential Portfolio Funds took full advantage of their flexibility in allocation and performed significantly better than the simple buy-and-hold strategy used by their industry peers. Rydex Essential Portfolio Conservative Fund performed relatively well in a challenging environment, returning -10.83% during the year compared to its benchmark (40% S&P 500 Index and 60% Barclays Capital Aggregate Bond Index), which had a return of -12.38%. The Fund’s annualized monthly volatility was significantly less than the benchmark’s.
Investing in both alternative investments and alternative strategies helped to opportunistically adjust the fund’s beta to associated market risk and reduce overall portfolio risk. These alternative strategies and investments included exposure to real estate, commodities, managed futures, absolute return strategies and hedged equity investments.
Allocation to Rydex Government Long Bond 1.2x Strategy Fund contributed significantly to the fund’s overall positive returns, as did most of the alternative strategies mentioned above. Opportunistic allocation to Rydex Commodities Strategy Fund captured significant commodity gains with the run-up of oil prices in the first half of 2008 and subsequently avoided losses as oil prices fell in the later half of the year. Rydex Managed Futures Strategy Fund also benefited the portfolio this year.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund | 17.1 | % | ||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 16.2 | % | ||
Rydex Series Funds — High Yield Strategy Fund — Class H | 14.4 | % | ||
Rydex Variable Trust — Sector Rotation Fund | 11.2 | % | ||
Rydex Variable Trust — International Rotation Fund | 9.7 | % | ||
Rydex Variable Trust — U.S. Government Money Market Fund | 9.6 | % | ||
Rydex Variable Trust — Absolute Return Strategies Fund | 8.2 | % | ||
Rydex Series Funds — S&P 500 Fund — Class H | 7.8 | % | ||
Rydex Variable Trust — Hedged Equity Fund | 2.6 | % | ||
Rydex Series Funds — Russell 2000® Fund — Class H | 1.5 | % | ||
Top Ten Total | 98.3 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
Cumulative Fund Performance:
October 27, 2006 – December 31, 2008
October 27, 2006 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (10/27/06) | |||||||||||
ESSENTIAL PORTFOLIO CONSERVATIVE FUND | -10.83 | % | -1.60 | % | ||||||||
S&P 500 INDEX | -37.00 | % | -15.81 | % | ||||||||
SYNTHETIC ESSENTIAL PORTFOLIO CONSERVATIVE BENCHMARK* | -12.38 | % | -2.13 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
* | Benchmark reflects a 40/60 ratio of the performance of the S&P 500 Index and the Barclays Capital Aggregate Bond Index. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ESSENTIAL PORTFOLIO MODERATE FUND
OBJECTIVE: The Essential Portfolio Moderate Fund’s objective is to seek growth of capital and, secondarily, preservation of capital by investing principally in a diversified portfolio of underlying funds.
Inception: October 27, 2006
During the one-year period ending December 31, 2008, the stock market went through a high level of turbulence unseen in the past several decades. The three Rydex Essential Portfolio Funds took full advantage of their flexibility in allocation and performed significantly better than the simple buy-and-hold strategy used by their industry peers.
Rydex Essential Portfolio Moderate Fund returned - -17.58% during the year compared to its benchmark (60% S&P 500
Index and 40% Barclays Capital Aggregate Bond Index), which had a return of -20.95%. The Fund’s annualized monthly volatility was significantly less than the benchmark’s.
Allocation to Rydex Government Long Bond 1.2x Strategy Fund contributed significantly to the Fund’s overall positive returns, as did most of the alternative strategies, including real estate, commodities, managed futures, absolute return strategies and hedged equity investments.
Opportunistic allocation to Rydex Commodities Strategy Fund captured significant commodity gains with the run-up of oil prices in the first half of 2008 and subsequently avoided losses as oil prices fell in the later half of the year. Rydex Managed Futures Strategy Fund also benefited the portfolio this year.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 18.6 | % | ||
Rydex Variable Trust — Sector Rotation Fund | 16.4 | % | ||
Rydex Variable Trust — International Rotation Fund | 14.8 | % | ||
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund | 11.6 | % | ||
Rydex Variable Trust — Absolute Return Strategies Fund | 8.8 | % | ||
Rydex Series Funds — Russell 2000® Fund — Class H | 7.1 | % | ||
Rydex Series Funds — High Yield Strategy Fund — Class H | 6.1 | % | ||
Rydex Series Funds — S&P 500 Fund — Class H | 5.7 | % | ||
Rydex Variable Trust — U.S. Government Money Market Fund | 4.8 | % | ||
Rydex Variable Trust — Hedged Equity Fund | 4.1 | % | ||
Top Ten Total | 98.0 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
Cumulative Fund Performance:
October 27, 2006 – December 31, 2008
October 27, 2006 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (10/27/06) | |||||||||||
ESSENTIAL PORTFOLIO MODERATE FUND | -17.58 | % | -4.51 | % | ||||||||
S&P 500 INDEX | -37.00 | % | -15.81 | % | ||||||||
SYNTHETIC ESSENTIAL PORTFOLIO MODERATE BENCHMARK* | -20.95 | % | -6.56 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
* | Benchmark reflects a 60/40 ratio of the performance of the S&P 500 Index and the Barclays Capital Aggregate Bond Index. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
ESSENTIAL PORTFOLIO AGGRESSIVE FUND
OBJECTIVE: The Essential Portfolio Aggressive Fund’s objective is to seek growth of capital by investing principally in a diversified portfolio of underlying funds.
Inception: October 27, 2006
The year ending December 31, 2008 was a difficult one, with the stock market going through the turbulence unseen in the past several decades. The three Rydex Essential Portfolio Funds took full advantage of their flexibility in allocation and performed significantly better than the simple buy-and-hold strategy used by their industry peers.
Rydex Essential Portfolio Aggressive Fund returned - -25.04% during the year compared to its benchmark (80% S&P 500 Index and 20% Barclays Capital Aggregate Bond Index), which
returned -29.15%. The Fund’s annualized monthly volatility was significantly less than the benchmark’s.
An allocation to Rydex Government Long Bond 1.2x Strategy Fund contributed significantly to the Fund’s returns, as did alternative strategies, including real estate, commodities, managed futures, absolute return strategies and hedged equity investments. Opportunistic allocation to Rydex Commodities Strategy Fund captured significant commodity gains in the first half of 2008 and subsequently avoided losses in the later half of the year. Rydex Managed Futures Strategy Fund also contributed to the Fund’s significant returns for the year.
Industry Diversification (Market Exposure as % of Net Assets)
“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.
Ten Largest Holdings (% of Total Net Assets) | ||||
Rydex Variable Trust — International Rotation Fund | 19.4 | % | ||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 18.8 | % | ||
Rydex Variable Trust — Sector Rotation Fund | 17.2 | % | ||
Rydex Series Funds — Russell 2000® Fund — Class H | 12.8 | % | ||
Rydex Variable Trust — Absolute Return Strategies Fund | 7.4 | % | ||
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund | 6.1 | % | ||
Rydex Variable Trust — Hedged Equity Fund | 6.0 | % | ||
Rydex Series Funds — S&P 500 Fund — Class H | 4.0 | % | ||
Rydex Variable Trust — Commodities Strategy Fund | 3.4 | % | ||
Rydex Variable Trust — Real Estate Fund | 2.8 | % | ||
Top Ten Total | 97.9 | % | ||
“Ten Largest Holdings” exclude any temporary cash or derivative investments.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)
Cumulative Fund Performance:
October 27, 2006 – December 31, 2008
October 27, 2006 – December 31, 2008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08 | ||||||||||||
SINCE | ||||||||||||
ONE | INCEPTION | |||||||||||
YEAR | (10/27/06) | |||||||||||
ESSENTIAL PORTFOLIO AGGRESSIVE FUND | -25.04 | % | -8.53 | % | ||||||||
S&P 500 INDEX | -37.00 | % | -15.81 | % | ||||||||
SYNTHETIC ESSENTIAL PORTFOLIO AGGRESSIVE BENCHMARK* | -29.15 | % | -11.16 | % | ||||||||
The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.
* | Benchmark reflects a 80/20 ratio of the performance of the S&P 500 Index and the Barclays Capital Aggregate Bond Index. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS
December 31, 2008
ESSENTIAL PORTFOLIO CONSERVATIVE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
MUTUAL FUNDS† 99.2% | ||||||||
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund | 109,057 | $ | 1,880,150 | |||||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 63,804 | 1,786,507 | ||||||
Rydex Series Funds — High Yield Strategy Fund — Class H | 83,110 | 1,587,407 | ||||||
Rydex Variable Trust — Sector Rotation Fund | 135,987 | 1,230,684 | ||||||
Rydex Variable Trust — International Rotation Fund* | 62,210 | 1,070,018 | ||||||
Rydex Variable Trust — U.S. Government Money Market Fund | 1,055,980 | 1,055,980 | ||||||
Rydex Variable Trust — Absolute Return Strategies Fund | 43,185 | 905,589 | ||||||
Rydex Series Funds — S&P 500 Fund — Class H | 48,105 | 855,301 | ||||||
Rydex Variable Trust — Hedged Equity Fund | 14,822 | 284,431 | ||||||
Rydex Series Funds — Russell 2000® Fund — Class H | 10,060 | 170,410 | ||||||
Rydex Variable Trust — Commodities Strategy Fund | 9,208 | 105,620 | ||||||
Total Mutual Funds (Cost $11,093,219) | 10,932,097 | |||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT†† 0.6% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 65,428 | $ | 65,428 | ||||
Total Repurchase Agreement (Cost $65,428) | 65,428 | |||||||
Total Investments 99.8% (Cost $11,158,647) | $ | 10,997,525 | ||||||
Other Assets in Excess of Liabilities – 0.2% | $ | 24,805 | ||||||
Net Assets – 100.0% | $ | 11,022,330 |
* | Non-Income Producing Security. | |
† | Affiliated Funds | |
†† | Repurchase Agreement — See Note 5. |
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
SCHEDULE OF INVESTMENTS
December 31, 2008
ESSENTIAL PORTFOLIO MODERATE FUND
MARKET | ||||||||
SHARES | VALUE | |||||||
MUTUAL FUNDS† 99.5% | ||||||||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 131,941 | $ | 3,694,337 | |||||
Rydex Variable Trust — Sector Rotation Fund | 358,806 | 3,247,195 | ||||||
Rydex Variable Trust — International Rotation Fund* | 171,147 | 2,943,729 | ||||||
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund | 133,738 | 2,305,652 | ||||||
Rydex Variable Trust — Absolute Return Strategies Fund | 83,397 | 1,748,841 | ||||||
Rydex Series Funds — Russell 2000® Fund — Class H* | 83,476 | 1,414,090 | ||||||
Rydex Series Funds — High Yield Strategy Fund — Class H | 63,062 | 1,204,486 | ||||||
Rydex Series Funds — S&P 500 Fund — Class H | 63,718 | 1,132,900 | ||||||
Rydex Variable Trust — U.S. Government Money Market Fund | 957,782 | 957,782 | ||||||
Rydex Variable Trust — Hedged Equity Fund | 42,035 | 806,647 | ||||||
Rydex Variable Trust — Commodities Strategy Fund | 25,249 | 289,603 | ||||||
Total Mutual Funds (Cost $20,791,842) | 19,745,262 | |||||||
Total Investments 99.5% (Cost $20,791,842) | $ | 19,745,262 | ||||||
Other Assets in Excess of Liabilities – 0.5% | $ | 95,409 | ||||||
Net Assets – 100.0% | $ | 19,840,671 |
* | Non-Income Producing Security. | |
† | Affiliated Funds |
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13 |
SCHEDULE OF INVESTMENTS
December 31, 2008
ESSENTIAL PORTFOLIO AGGRESSIVE FUND
MARKET | |||||||||||
SHARES | VALUE | ||||||||||
MUTUAL FUNDS† 99.5% | |||||||||||
Rydex Variable Trust — International Rotation Fund* | 74,677 | $ | 1,284,449 | ||||||||
Rydex Series Funds — Managed Futures Strategy Fund — Class H | 44,467 | 1,245,072 | |||||||||
Rydex Variable Trust — Sector Rotation Fund | 126,019 | 1,140,469 | |||||||||
Rydex Series Funds — Russell 2000® Fund — Class H* | 50,259 | 851,392 | |||||||||
Rydex Variable Trust — Absolute Return Strategies Fund | 23,543 | 493,691 | |||||||||
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund | 23,623 | 407,258 | |||||||||
Rydex Variable Trust — Hedged Equity Fund | 20,636 | 396,004 | |||||||||
Rydex Series Funds — S&P 500 Fund — Class H | 14,892 | 264,788 | |||||||||
Rydex Variable Trust — Commodities Strategy Fund | 19,621 | 225,050 | |||||||||
Rydex Variable Trust — Real Estate Fund | 10,765 | 188,491 | |||||||||
Rydex Series Funds — High Yield Strategy Fund — Class H | 5,601 | 106,981 | |||||||||
Total Mutual Funds (Cost $7,320,864) | 6,603,645 | ||||||||||
FACE | MARKET | |||||||
AMOUNT | VALUE | |||||||
REPURCHASE AGREEMENT†† 0.5% | ||||||||
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09 | $ | 32,147 | $ | 32,147 | ||||
Total Repurchase Agreement (Cost $32,147) | 32,147 | |||||||
Total Investments 100.0% (Cost $7,353,011) | $ | 6,635,792 | ||||||
Liabilities in Excess of Other Assets – 0.0% | $ | (230 | ) | |||||
Net Assets – 100.0% | $ | 6,635,562 |
* | Non-Income Producing Security. | |
† | Affiliated Funds | |
†† | Repurchase Agreement — See Note 5. |
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2008
Essential Portfolio | Essential Portfolio | Essential Portfolio | ||||||||||
Conservative | Moderate | Aggressive | ||||||||||
Fund | Fund | Fund | ||||||||||
ASSETS | ||||||||||||
Investment Securities in Affiliated Funds | $ | 10,932,097 | $ | 19,745,262 | $ | 6,603,645 | ||||||
Repurchase Agreements | 65,428 | — | 32,147 | |||||||||
Total Investments | 10,997,525 | 19,745,262 | 6,635,792 | |||||||||
Receivable for Securities Sold | — | 100,000 | — | |||||||||
Receivable for Fund Shares Sold | 35,477 | 10,200 | — | |||||||||
Total Assets | 11,033,002 | 19,855,462 | 6,635,792 | |||||||||
LIABILITIES | ||||||||||||
Payable for Securities Purchased | 44 | 42 | 1 | |||||||||
Payable for Fund Shares Redeemed | 10,628 | 1,109 | 199 | |||||||||
Custody Fees Payable | — | 8 | 30 | |||||||||
Overdraft Due to Custodian Bank | — | 13,632 | — | |||||||||
Total Liabilities | 10,672 | 14,791 | 230 | |||||||||
NET ASSETS | $ | 11,022,330 | $ | 19,840,671 | $ | 6,635,562 | ||||||
NET ASSETS CONSIST OF | ||||||||||||
Paid-In Capital | $ | 12,897,520 | $ | 24,392,346 | $ | 9,048,363 | ||||||
Undistributed Net Investment Income | 147 | 154 | 5 | |||||||||
Accumulated Net Realized Loss on Investments | (1,714,215 | ) | (3,505,249 | ) | (1,695,587 | ) | ||||||
Net Unrealized Depreciation on Investments | (161,122 | ) | (1,046,580 | ) | (717,219 | ) | ||||||
NET ASSETS | $ | 11,022,330 | $ | 19,840,671 | $ | 6,635,562 | ||||||
SHARES OUTSTANDING | 507,223 | 954,762 | 365,131 | |||||||||
NET ASSET VALUES | $ | 21.73 | $ | 20.78 | $ | 18.17 | ||||||
Cost of Investments | $ | 11,158,647 | $ | 20,791,842 | $ | 7,353,011 | ||||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15 |
STATEMENTS OF OPERATIONS
Year Ended December 31, 2008
Essential Portfolio | Essential Portfolio | Essential Portfolio | ||||||||||
Conservative | Moderate | Aggressive | ||||||||||
Fund | Fund | Fund | ||||||||||
INVESTMENT INCOME | ||||||||||||
Interest | $ | 2,363 | $ | 4,066 | $ | 1,222 | ||||||
Dividends from Affiliated Funds | 415,260 | 384,723 | 74,923 | |||||||||
Total Income | 417,623 | 388,789 | 76,145 | |||||||||
EXPENSES | ||||||||||||
Custody Fees | 697 | 338 | 222 | |||||||||
Total Expenses | 697 | 338 | 222 | |||||||||
Net Investment Income | 416,926 | 388,451 | 75,923 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Affiliated Investment Securities | (1,646,569 | ) | (3,256,386 | ) | (1,571,313 | ) | ||||||
Realized Gain Distributions Received from Affiliated Funds | 56,054 | 89,322 | 39,950 | |||||||||
Total Net Realized Loss | (1,590,515 | ) | (3,167,064 | ) | (1,531,363 | ) | ||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investment Securities | (180,993 | ) | (1,037,759 | ) | (575,444 | ) | ||||||
Net Change in Unrealized Appreciation (Depreciation) | (180,993 | ) | (1,037,759 | ) | (575,444 | ) | ||||||
Net Loss on Investments | (1,771,508 | ) | (4,204,823 | ) | (2,106,807 | ) | ||||||
Net Decrease in Net Assets from Operations | $ | (1,354,582 | ) | $ | (3,816,372 | ) | $ | (2,030,884 | ) | |||
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
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THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17 |
STATEMENTS OF CHANGES IN NET ASSETS
Essential Portfolio | Essential Portfolio | |||||||||||||||
Conservative Fund | Moderate Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
From Operations | ||||||||||||||||
Net Investment Income | $ | 416,926 | $ | 73,262 | $ | 388,451 | $ | 116,832 | ||||||||
Net Realized Gain (Loss) on Investments | (1,590,515 | ) | 144,346 | (3,167,064 | ) | 65,302 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (180,993 | ) | 22,954 | (1,037,759 | ) | 63,722 | ||||||||||
Net Increase (Decrease) in Net Assets from Operations | (1,354,582 | ) | 240,562 | (3,816,372 | ) | 245,856 | ||||||||||
Distributions to Shareholders from:* | ||||||||||||||||
Net Investment Income | (426,954 | ) | (63,101 | ) | (392,818 | ) | (112,311 | ) | ||||||||
Realized Gain on Investments | (138,044 | ) | (131,590 | ) | (179,460 | ) | (237,165 | ) | ||||||||
Total Distributions to Shareholders | (564,998 | ) | (194,691 | ) | (572,278 | ) | (349,476 | ) | ||||||||
Share Transactions | ||||||||||||||||
Proceeds from Shares Purchased | 25,842,864 | 14,786,536 | 24,283,258 | 24,695,699 | ||||||||||||
Value of Shares Purchased through Dividend Reinvestment | 564,998 | 194,691 | 572,278 | 349,476 | ||||||||||||
Cost of Shares Redeemed | (18,904,806 | ) | (10,020,232 | ) | (14,911,643 | ) | (14,163,815 | ) | ||||||||
Net Increase in Net Assets From Share Transactions | 7,503,056 | 4,960,995 | 9,943,893 | 10,881,360 | ||||||||||||
Net Increase (Decrease) in Net Assets | 5,583,476 | 5,006,866 | 5,555,243 | 10,777,740 | ||||||||||||
Net Assets—Beginning of Period | 5,438,854 | 431,988 | 14,285,428 | 3,507,688 | ||||||||||||
Net Assets—End of Period | $ | 11,022,330 | $ | 5,438,854 | $ | 19,840,671 | $ | 14,285,428 | ||||||||
Undistributed Net Investment Income—End of Period | $ | 147 | $ | 10,175 | $ | 154 | $ | 4,521 | ||||||||
* | For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains. |
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT | See Notes to Financial Statements. |
Essential Portfolio | |||||||
Aggressive Fund | |||||||
Year Ended | Year Ended | ||||||
December 31, | December 31, | ||||||
2008 | 2007 | ||||||
$ | 75,923 | $ | 45,883 | ||||
(1,531,363 | ) | 194,966 | |||||
(575,444 | ) | (123,727 | ) | ||||
(2,030,884 | ) | 117,122 | |||||
(77,240 | ) | (44,561 | ) | ||||
(175,409 | ) | (186,650 | ) | ||||
(252,649 | ) | (231,211 | ) | ||||
8,627,762 | 10,980,828 | ||||||
252,649 | 231,211 | ||||||
(6,835,397 | ) | (4,766,306 | ) | ||||
2,045,014 | 6,445,733 | ||||||
(238,519 | ) | 6,331,644 | |||||
6,874,081 | 542,437 | ||||||
$ | 6,635,562 | $ | 6,874,081 | ||||
$ | 5 | $ | 1,322 | ||||
See Notes to Financial Statements. | THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19 |
FINANCIAL HIGHLIGHTS
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.
Net Increase | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized | (Decrease) in | Net Increase | NET | RATIOS TO | ||||||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSET | and | Net Asset | Distributions | Distributions | (Decrease) | ASSET | AVERAGE NET ASSETS: | Net Assets, | ||||||||||||||||||||||||||||||||||||||||||||||||
VALUE, | Net | Unrealized | Value | from Net | from Net | in Net | VALUE, | Total | Net | Portfolio | End of | |||||||||||||||||||||||||||||||||||||||||||||
BEGINNING OF | Investment | Gains (Losses) | Resulting from | Investment | Realized | Total | Asset | END OF | Investment | Total | Investment | Turnover | Period (000’s | |||||||||||||||||||||||||||||||||||||||||||
Year Ended | PERIOD | Income† | on Investments | Operations | Income§ | Gains§ | Distributions | Value | PERIOD | Return††† | Expenses†† | Income | Rate | omitted) | ||||||||||||||||||||||||||||||||||||||||||
Essential Portfolio Conservative Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | $ | 25.68 | $ | .89 | $ | (3.67 | ) | $ | (2.78 | ) | $ | (.91 | ) | $ | (.26 | ) | $ | (1.17 | ) | $ | (3.95 | ) | $ | 21.73 | (10.83) | % | 0.01 | % | 3.72 | % | 314 | % | $ | 11,022 | ||||||||||||||||||||||
December 31, 2007 | 25.09 | .61 | 1.00 | 1.61 | (.33 | ) | (.69 | ) | (1.02 | ) | .59 | 25.68 | 6.45 | % | 0.03 | % | 2.33 | % | 395 | % | 5,439 | |||||||||||||||||||||||||||||||||||
December 31, 2006* | 25.00 | .45 | (.02 | ) | .43 | (.33 | ) | (.01 | ) | (.34 | ) | .09 | 25.09 | 1.71 | % | — | 9.77 | %** | 18 | % | 432 | |||||||||||||||||||||||||||||||||||
Essential Portfolio Moderate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 25.96 | .47 | (5.04 | ) | (4.57 | ) | (.44 | ) | (.17 | ) | (.61 | ) | (5.18 | ) | 20.78 | (17.58) | % | 0.00 | % | 1.99 | % | 232 | % | 19,841 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 25.01 | .36 | 1.27 | 1.63 | (.22 | ) | (.46 | ) | (.68 | ) | .95 | 25.96 | 6.56 | % | 0.01 | % | 1.36 | % | 269 | % | 14,285 | |||||||||||||||||||||||||||||||||||
December 31, 2006* | 25.00 | 1.35 | (.61 | ) | .74 | (.72 | ) | (.01 | ) | (.73 | ) | .01 | 25.01 | 2.98 | % | — | 28.35 | %** | 20 | % | 3,508 | |||||||||||||||||||||||||||||||||||
Essential Portfolio Aggressive Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008 | 25.21 | .25 | (6.57 | ) | (6.32 | ) | (.24 | ) | (.48 | ) | (.72 | ) | (7.04 | ) | 18.17 | (25.04) | % | 0.00 | % | 1.11 | % | 308 | % | 6,636 | ||||||||||||||||||||||||||||||||
December 31, 2007 | 24.48 | .29 | 1.32 | 1.61 | (.17 | ) | (.71 | ) | (.88 | ) | .73 | 25.21 | 6.64 | % | 0.01 | % | 1.12 | % | 300 | % | 6,874 | |||||||||||||||||||||||||||||||||||
December 31, 2006* | 25.00 | 1.85 | (1.10 | ) | .75 | (1.24 | ) | (.03 | ) | (1.27 | ) | (.52 | ) | 24.48 | 3.02 | % | — | 39.87 | %** | 34 | % | 542 |
* | Since the commencement of operations: October 27, 2006. | |
** | Income ratios for the year ended December 31, 2006 were calculated for an abbreviated time frame and are not indicative of future class performance, and are annualized. | |
† | Calculated using the average daily shares outstanding for the year. | |
†† | Does not include expenses of the underlying funds in which the Funds invest. | |
††† | Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized. | |
§ | For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains. |
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS
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 its Funds to insurance companies for their variable annuity and variable life insurance contracts.
At December 31, 2008, the Trust consisted of fifty-eight separate funds. This report covers the Essential Portfolio Funds (the “Funds”), while the other funds are contained in separate reports.
Each Fund is a “fund of funds,” which means that it seeks to achieve its investment objective by investing primarily in other Rydex mutual funds (the “underlying funds”) instead of individual securities.
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 and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This 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.
A. The underlying funds are valued at their Net Asset Value (“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. Short-term debt securities with a maturity of 60 days or less are valued at amortized cost, which approximates market value.
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. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis.
C. Distributions of net investment income and net realized gains, 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. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.
E. Throughout the normal course of business, the Funds and underlying funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The maximum exposure under these arrangements is unknown, as this would involve future claims that may be made 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 their investment strategies, the underlying funds 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 reflected in the underlying funds’ NAVs.
A short sale is a transaction in which an underlying fund sells an equity or fixed income security it does not own. If the security sold short goes down in price between the time the underlying fund sells the security and closes its short position, that underlying fund will realize a gain on the transaction. Conversely, if the security goes up in price during the period, that underlying 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 an underlying 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 an underlying fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is the risk that an underlying 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 an underlying fund may
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 securities 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 an underlying fund invests in which may make it difficult for that underlying 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, an underlying 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. Swap agreements may be considered to be 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 underlying 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. An underlying fund may enter into credit default swaps in which that underlying fund or its counterparty act as guarantors. By acting as the guarantor of a swap, that underlying 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 underlying funds are required to maintain collateral in various forms. The underlying 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 underlying fund.
The risks inherent in the use of short sales, options, futures contracts, options on futures contracts, 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 counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.
3. Fees And Other Transactions With Affiliates
Rydex Investments manages the investment and reinvestment of the assets of each of the Funds in accordance with the investment objectives, policies, and limitations of each Fund, however, the Funds do not pay Rydex Investments a management fee. As part of its agreement with the Trust, Rydex Investments will pay all expenses of the Funds, including the cost of transfer agency, fund administration, audit and other services, excluding interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the execution of portfolio transactions, short dividend expenses, and extraordinary expenses.
Each Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other underlying fund expenses) of the underlying funds in which the Fund invests.
Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.
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.
Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-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
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (continued)
income tax returns for all open tax years (fiscal years 2005-2008), and has concluded that no provision for income tax is required in the Funds’ financial statements.
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 losses deferred due to wash sales.
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. 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’ tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.
The tax character of distributions paid during 2008, was as follows:
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||
Essential Portfolio Conservative Fund | $ | 519,969 | $ | 45,029 | $ | 564,998 | ||||||
Essential Portfolio Moderate Fund | 410,148 | 162,130 | $ | 572,278 | ||||||||
Essential Portfolio Aggressive Fund | 148,409 | 104,240 | $ | 252,649 |
The tax character of distributions paid during 2007, was as follows:
Ordinary | Long-Term | Total | ||||||||||
Fund | Income | Capital Gain | Distributions | |||||||||
Essential Portfolio Conservative Fund | $ | 192,682 | $ | 2,009 | $ | 194,691 | ||||||
Essential Portfolio Moderate Fund | 332,321 | 17,155 | 349,476 | |||||||||
Essential Portfolio Aggressive Fund | 226,771 | 4,440 | 231,211 |
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was a follows:
Undistributed | Undistributed | |||||||||||||||
Ordinary | Long-Term | Net Unrealized | Capital Loss | |||||||||||||
Fund | Income | Capital Gain | Depreciation | Carryforward1 | ||||||||||||
Essential Portfolio Conservative Fund | $ | 147 | $ | — | $ | (1,068,734 | ) | $ | (612,719 | ) | ||||||
Essential Portfolio Moderate Fund | 154 | — | (2,342,570 | ) | (1,816,884 | ) | ||||||||||
Essential Portfolio Aggressive Fund | 5 | — | (1,401,947 | ) | (764,618 | ) |
Capital Loss Carryforward amounts may be limited due to Treasury Regulations.
1 | A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows: |
Total | ||||||||
Expires in | Capital Loss | |||||||
Fund | 2016 | Carryforward | ||||||
Essential Portfolio Conservative Fund | $ | (612,719 | ) | $ | (612,719 | ) | ||
Essential Portfolio Moderate Fund | (1,816,884 | ) | (1,816,884 | ) | ||||
Essential Portfolio Aggressive Fund | (764,618 | ) | (764,618 | ) |
At December 31, 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:
Tax | Tax | Net | ||||||||||||||
Tax | Unrealized | Unrealized | Unrealized | |||||||||||||
Fund | Cost | Gain | Loss | Loss | ||||||||||||
Essential Portfolio Conservative Fund | $ | 12,066,259 | $ | 315,163 | $ | (1,383,897 | ) | $ | (1,068,734 | ) | ||||||
Essential Portfolio Moderate Fund | 22,087,832 | 532,478 | (2,875,048 | ) | (2,342,570 | ) | ||||||||||
Essential Portfolio Aggressive Fund | 8,037,739 | 84,611 | (1,486,558 | ) | (1,401,947 | ) |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23 |
NOTES TO FINANCIAL STATEMENTS (continued)
Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax year. For the year ended December 31, 2008, the following amounts of realized capital and currency losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2009:
Fund | Capital | |||
Essential Portfolio Conservative Fund | $ | (193,884 | ) | |
Essential Portfolio Moderate Fund | (392,375 | ) | ||
Essential Portfolio Aggressive Fund | (246,241 | ) |
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 to ensure that its market value exceeds, 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 at December 31, 2008, were as follows:
Counterparty | Terms of Agreement | Face Value | Market Value | Repurchase Price | ||||||||||||
Credit Suisse Group | 0.03% due 01/02/09 | $ | 49,841,465 | $ | 49,841,465 | $ | 49,841,548 | |||||||||
$ | 49,841,465 | $ | 49,841,548 | |||||||||||||
At December 31, 2008, the collateral for the repurchase agreements in the joint account was as follows:
Security Type | Maturity Date | Rate | Par Value | Market Value | ||||||||||||
U.S. Treasury Note | 05/15/18 | 3.875 | % | $ | 43,815,000 | $ | 50,842,661 | |||||||||
$ | 50,842,661 | |||||||||||||||
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 its 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 credit worthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.
6. Fair Value Measurement
Effective January 1, 2008, the Funds adopted 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.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (continued)
The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2008:
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | |||||||||||||||||||||||
Investments | Other Financial | Investments | Other Financial | Investments | Other Financial | |||||||||||||||||||||||
Fund | In Securities | Instruments | In Securities | Instruments | In Securities | Instruments | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Essential Portfolio Conservative Fund | $ | 10,997,525 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 10,997,525 | ||||||||||||||
Essential Portfolio Moderate Fund | 19,745,262 | — | — | — | — | — | 19,745,262 | |||||||||||||||||||||
Essential Portfolio Aggressive Fund | 6,635,792 | — | — | — | — | — | 6,635,792 |
7. Securities Transactions
During the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:
Essential Portfolio | Essential Portfolio | Essential Portfolio | ||||||||||
Conservative Fund | Moderate Fund | Aggressive Fund | ||||||||||
Purchases | $42,064,931 | $54,644,366 | $22,876,553 | |||||||||
Sales | $34,643,170 | $44,366,278 | $20,884,593 |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25 |
NOTES TO FINANCIAL STATEMENTS (continued)
8. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:
Purchased through | ||||||||||||||||||||||||||||||||
Shares Purchased | Dividend Reinvestment | Shares Redeemed | Net Shares Purchased | |||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Essential Portfolio Conservative Fund | 1,053,806 | 573,619 | 25,905 | 7,635 | (784,255 | ) | (386,703 | ) | 295,456 | 194,551 | ||||||||||||||||||||||
Essential Portfolio Moderate Fund | 1,013,788 | 945,750 | 27,580 | 13,604 | (636,851 | ) | (549,340 | ) | 404,517 | 410,014 | ||||||||||||||||||||||
Essential Portfolio Aggressive Fund | 388,181 | 428,152 | 14,020 | 9,289 | (309,772 | ) | (186,898 | ) | 92,429 | 250,543 |
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS (concluded)
9. Change in Independent Registered Public Accounting Firm
The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.
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. Management is evaluating the impact of FAS 161 on its current disclosures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
of the Rydex Variable Trust:
of the Rydex Variable Trust:
We have audited the accompanying statements of assets and liabilities of Essential Portfolio Conservative Fund, Essential Portfolio Moderate Fund, and Essential Portfolio Aggressive Fund (three of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets for the year ended December 31, 2007 and the financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 25, 2008 expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the transfer agent of the underlying funds and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.
McLean, Virginia
February 26, 2009
February 26, 2009
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
OTHER INFORMATION (Unaudited)
Tax Information
This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.
Of the ordinary income distributions paid during the year, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:
Fund | % Qualifying | |||
Essential Portfolio Conservative Fund | 4.42% | |||
Essential Portfolio Moderate Fund | 2.04% | |||
Essential Portfolio Aggressive Fund | 6.02% |
The Funds’ distributions to shareholders included:
Essential | Essential | Essential | ||||||||||
Portfolio | Portfolio | Portfolio | ||||||||||
Conservative | Moderate | Aggressive | ||||||||||
Fund | Fund | Fund | ||||||||||
From long-term capital gains, subject to the 15% rate gains category: | 45,029 | 162,130 | 104,240 |
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 December 31 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.
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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29 |
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
Length of Service | ||||||
Name, Position and | As Trustee | Number of | ||||
Year of Birth | (Year Began) | Funds Overseen | ||||
Carl G. Verboncoeur* | Rydex Series Funds – 2004 | 160 | ||||
Trustee, President (1952) | Rydex Variable Trust – 2004 | |||||
Rydex Dynamic Funds – 2004 | ||||||
Rydex ETF Trust – 2004 |
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)
Michael P. Byrum* | Rydex Series Funds – 2005 | 160 | ||||
Trustee, Vice President | Rydex Variable Trust – 2005 | |||||
(1970) | Rydex Dynamic Funds – 2005 | |||||
Rydex ETF Trust – 2005 |
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
Length of Service | ||||||
Name, Position and | As Trustee | Number of | ||||
Year of Birth | (Year Began) | Funds Overseen | ||||
John O. Demaret | Rydex Series Funds – 1997 | 151 | ||||
Trustee, Chairman of the | Rydex Variable Trust – 1998 | |||||
Board (1940) | Rydex Dynamic Funds – 1999 | |||||
Rydex ETF Trust – 2003 |
Principal Occupations During Past Five Years: Retired
Corey A. Colehour | Rydex Series Funds – 1993 | 151 | ||||
Trustee (1945) | Rydex Variable Trust – 1998 | |||||
Rydex Dynamic Funds – 1999 | ||||||
Rydex ETF Trust – 2003 |
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 | Rydex Series Funds – 1995 | 151 | ||||
Trustee (1941) | Rydex Variable Trust – 1998 | |||||
Rydex Dynamic Funds – 1999 | ||||||
Rydex ETF Trust – 2003 | ||||||
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group | ||||||
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT |
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)
Length of Service | ||||
Name, Position and | As Trustee | Number of | ||
Year of Birth | (Year Began) | Funds Overseen | ||
Werner E. Keller | Rydex Series Funds – 2005 | 151 | ||
Trustee (1940) | Rydex Variable Trust – 2005 | |||
Rydex Dynamic Funds – 2005 | ||||
Rydex ETF Trust – 2005 |
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr. | Rydex Series Funds – 2005 | 151 | ||||
Trustee (1960) | Rydex Variable Trust – 2005 | |||||
Rydex Dynamic Funds – 2005 | ||||||
Rydex ETF Trust – 2005 |
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville | Rydex Series Funds – 1997 | 151 | ||
Trustee (1942) | Rydex Variable Trust – 1998 | |||
Rydex Dynamic Funds – 1999 | ||||
Rydex ETF Trust – 2003 |
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers | Rydex Series Funds – 1993 | 151 | ||||
Trustee (1944) | Rydex Variable Trust – 1998 | |||||
Rydex Dynamic Funds – 1999 | ||||||
Rydex ETF Trust – 2003 | ||||||
Principal Occupations During Past Five Years: Owner, Arrow Limousine | ||||||
EXECUTIVE OFFICERS
Name, Position and | Principal Occupations | |
Year of Birth | During Past Five Years | |
Nick Bonos* Vice President and Treasurer (1963) | 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. |
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31 |
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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAEP-2-1208x1209
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAEP-2-1208x1209
Item 2. Code of Ethics.
The Board of Trustees of the Trust has adopted a Combined Code of Ethics (the “Code”) pursuant to Rule 17j-1 under the 1940 Act. The Advisor and Distributor are also covered by the Code. The Code applies to the personal investing activities of trustees, directors, officers, and certain employees (“access persons”). Rule 17j-1 and the Code are designed to prevent unlawful practices in connection with the purchase or sale of securities by access persons. Under the Code, access persons are permitted to engage in personal securities transactions, but are required to report their personal securities transactions for monitoring purposes. In addition, certain access persons are required to obtain approval before investing in initial public offerings or private placements. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report. The Code is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that Werner Keller, an “independent” Trustee serving on the registrant’s audit committee, is an “audit committee financial expert,” as defined in Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
(a)-(d) The aggregate Audit Fees billed by the Trust’s principal accountant, for the audit of the annual financial statements in connection with statutory and regulatory filings for the fiscal years ended December 31, 2008 and December 31, 2007 were $965,000 and $941,675, respectively. The aggregate Tax Fees billed by Trust’s principal accountant for professional services rendered for tax compliance, tax advice, and tax planning, including preparation of tax returns and distribution assistance, for the fiscal years ended December 31, 2008 and December 31, 2007 were $0 and $0, respectively.
(e) The audit committee has adopted a policy whereby audit and non-audit services performed by the registrant’s principal accountant for the registrant, its investment advisor, and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings. If such service is required between regularly scheduled audit committee meetings, the chairman of the audit committee, J. Kenneth Dalton, is authorized to pre-approve the service with full committee approval at the next scheduled meeting. There
shall be no waivers of the pre-approval process. No services described in (b)-(d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s accountant for the most recent fiscal year and the preceding fiscal year for services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant were $75,000 and $0, respectively. These aggregate fees were less than the aggregate fees billed for the same periods by the registrant’s principal accountant for audit services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant.
(h) All non-audit services rendered in (g) above were pre-approved by the registrant’s audit committee. As such, the audit committee has considered these services in maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) Based on their evaluation on March 6, 2009, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex Variable Trust (the “Trust”) believe that there were no significant deficiencies in the design or operation of the internal controls of the Trust or Rydex Investments (“RI”), the investment advisor and manager of the Trust, or Rydex Distributors, Inc. (“RD”), which acts as distributor for the Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust or RI on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report.
There was no fraud, whether or not material, involving officers or employees of RI, RD or the Trust who have a significant role in the Trust’s internal controls, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come to the attention of the Advisor or the officers of the Trust, including its President and Treasurer.
(b) There were no significant changes in the Trust’s or RI’s internal controls over financial reporting, (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.
(a)(2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.
(b) A certification by the registrant’s President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.
EX.-12(a)(2)(i)
CERTIFICATION
I, Carl G. Verboncoeur, certify that:
1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 6, 2009 | ||||
/s/ Carl G. Verboncoeur | ||||
Carl G. Verboncoeur, | ||||
President | ||||
EX.-12(a)(2)(ii)
CERTIFICATION
I, Nick Bonos, certify that:
1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 6, 2009 | ||||
/s/ Nick Bonos | ||||
Nick Bonos, | ||||
Vice President and Treasurer | ||||
EX. 12(b)(i)
CERTIFICATION
I, Carl G. Verboncoeur, President of Rydex Variable Trust (the “Trust”), certify that:
1. | The Form N-CSR of the Trust (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. |
A signed original of this written statement required by Section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.
Dated: March 6, 2009
/s/ Carl G. Verboncoeur | ||||
Carl G. Verboncoeur, | ||||
President | ||||
EX. 12(b)(ii)
CERTIFICATION
I, Nick Bonos, Vice President and Treasurer of Rydex Variable Trust (the “Trust”), certify that:
1. | The Form N-CSR of the Trust (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. |
A signed original of this written statement required by Section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.
Dated: March 6, 2009
/s/ Nick Bonos | ||||
Nick Bonos, | ||||
Vice President and Treasurer | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Rydex Variable Trust | |
By (Signature and Title)* | /s/ Carl G. Verboncoeur | |
Carl G. Verboncoeur, President |
Date | March 6, 2009 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Carl G. Verboncoeur | |||
Carl G. Verboncoeur, President |
Date | March 6, 2009 | |
By (Signature and Title)* | /s/ Nick Bonos | |
Nick Bonos, Vice President and Treasurer |
Date | March 6, 2009 | |
* Print the name and title of each signing officer under his or her signature.