Rydex Energy Fund (RYEIX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 07584

Rydex Series Funds
(Exact name of registrant as specified in charter)

9601 Blackwell Road, Suite 500

Rockville, Maryland 20850
(Address of principal executive offices) (Zip code)

Richard M. Goldman
Rydex Series Funds
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-301-296-5100

Date of fiscal year end: December 31, 2009

Date of reporting period: December 31, 2009

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 Series Funds

             

DECEMBER 31, 2009

RYDEX SERIES FUNDS ANNUAL REPORT

ALTERNATIVE INVESTMENT FUNDS

RYDEX|SGI MANAGED FUTURES STRATEGY FUND

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

LETTER TO OUR SHAREHOLDERS   2

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

PERFORMANCE REPORTS AND FUND PROFILES   6

CONSOLIDATED SCHEDULE OF INVESTMENTS   8

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES   11

CONSOLIDATED STATEMENT OF OPERATIONS   12

STATEMENTS OF CHANGES IN NET ASSETS   13

FINANCIAL HIGHLIGHTS   14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   15

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   24

OTHER INFORMATION   25

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   28

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

On September 15, 2009, Federal Reserve (Fed) Chairman Ben Bernanke stated that “the recession is very likely over.” Indications are that we are in fact emerging from what has been termed the “Great Recession,” but significant risks linger due to the aftershocks of the 2008 financial and liquidity crisis.

Despite the strong advance to end the year, 2009 marked the end of one of the all-time worst decades of performance for the U.S. equity markets, with an average annual return of -.95%. However, economic trends over the last year suggest that conditions are improving. One sign is an exceptionally strong equity market. From March 9 (the market’s low point) until the end of 2009, the U.S. equity market was up 67.80% as measured by the S&P 500^® Index. Strong equity returns across multiple indices, including the MSCI EAFE Index^® (up 32.43% for the year), reflected investors’ increased appetite for risk.

More signs of economic improvement

Emerging markets posted even stronger returns—the MSCI Emerging Markets Index, for instance, was up 78.58% in 2009. Additionally, all 10 underlying economic sectors posted positive returns during the one-year period, with information technology (59.92%) and materials (45.22%) leading the way. Among the laggards for the year, utilities (6.80%) and telecom (2.63%) still managed to produce positive returns. Along with traditional assets, hedge fund managers enjoyed the favorable market environment in 2009 with returns of 20.04% as measured by the HFRI Fund Weighted Composite Index, which is an equal weighted index of more than 2,000 single manager hedge funds. Those strong returns were in contrast to a poor showing in 2008, when the composite index was down 19%. Another good sign: After a significant spike at the height of the financial crisis in the fall of 2008, implied market volatility levels as measured by the VIX Index have steadily trended down to more normal levels.

Improving housing conditions and increases in consumer spending—combined with significant reduction of inventories—lifted the U.S. economy out of recession in the third quarter of 2009. Real GDP grew at a rate of 2.2% for the quarter. U.S. consumer confidence, as measured by the Conference Board Consumer Confidence Index, rose in December to 52.9—the second straight month of improvement. Consumer outlook has improved somewhat from early in 2009, although concerns relating to the job market continue to weigh on consumers. Another sign of stronger economic conditions is existing home sales, which continued to improve—in November, existing home sales increased 7.4% from the prior month.

Reasons for caution in 2010

While many indicators are positive, certain risks remain. One of the major areas of concern is U.S. employment. The pace of job losses has slowed considerably from late 2008 and early 2009, when the change to non-farm payrolls shed as much as 741,000 jobs in a month. However, in December, despite modest growth in the prior month, 85,000 jobs were lost. The unemployment rate remained unchanged at 10% only due to the fact that the labor force declined by 661,000 workers.

Looking at 2010, some questions remain. How (and in what timeframe) will the Fed orchestrate an exit to the massive amount of quantitative easing it has implemented? Will inflationary pressures force the Fed to raise rates prematurely or will excess productive capacity counter those risks? How will the government grapple with deficit issues while promoting job growth necessary to support the fragile economy?

2    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

LETTER TO OUR SHAREHOLDERS (concluded)

So far, the Fed has signaled that it will maintain an “exceptionally low” interest rate target for some time—in fact, there is a reasonable chance that the Fed will not increase rates until early 2011. If financial conditions continue to improve, the Fed will not need to further expand its credit easing policies and may begin an orderly exit to the existing programs. The major risks for the U.S. economy include long-run negative implications to carrying large budget deficits. Labor conditions also factor largely into the equation, with the risk of continued rising unemployment undermining the economic recovery.

In any case, the broad array of product offerings at RYDEX | SGI can help investors either hedge or augment exposures to the equity or fixed-income markets, as well as introduce alternative assets and strategies into a portfolio to improve overall diversification. Thank you for the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

Performance displayed represents past performance, which is no guarantee of future results.

Fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call 800.820.0888 or visit www.rydex-sgi.com.

THE RYDEX | SGI SERIES FUNDS 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, 2009 and ending December 31, 2009.

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.

Certain retirement plans such as IRA, SEP, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

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 | SGI SERIES FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

				Beginning		Ending		Expenses
	Expense			Account Value		Account Value		Paid During
	Ratio		†	June 30, 2009		December 31, 2009		Period		*
Table 1. Based on actual Fund return
Managed Futures Strategy Fund
A-Class		2.16%		$	1,000.00	$	997.80	$	10.88
C-Class		2.93%			1,000.00		993.90		14.73
H-Class		2.17%			1,000.00		997.80		10.93
Table 2. Based on hypothetical 5% return (before expenses)
Managed Futures Strategy Fund
A-Class		2.16%			1,000.00		1,014.32		10.97
C-Class		2.93%			1,000.00		1,010.44		14.85
H-Class		2.17%			1,000.00		1,014.27		11.02

*	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 the number of days in the current fiscal year.
†	Annualized

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

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). If the Fund meets its objective, the value of the Fund’s shares will tend to increase on a daily basis by the amount of any increase in the value of the benchmark. When the value of the benchmark declines, the value of the Fund’s shares should also decrease on a daily basis by the amount of any decrease in the value of the benchmark.

Inception: March 2, 2007

The S&P DTI had its first down year in history last year, as a result of a mostly trendless market. The S&P DTI’s ability to go both long and short (with the exception of energy, which can only have a long or neutral stance) softened its decline for the period. Gold, silver and lean hogs were the most significant positive contributors to S&P DTI performance during the year, while the U.S. Long Bond, soybeans and coffee futures were among the components that contributed least to Index performance. While solid gains were made in Copper and Sugar, the multiple trades in the energy space, the grain space, coffee and treasuries did little to help the Index. The Index was short the US Dollar for much of the year, but not long enough to overcome these losses. RYDEX | SGI Managed Futures Strategy Fund H-Class returned -4.39% for the year ended December 31, 2009, as compared to its benchmark, the S&P DTI Index’s return of -5.88%.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	March 2, 2007
C-Class	March 2, 2007
H-Class	March 2, 2007

The Fund invests principally in commodity, currency, and financial-linked structured notes, exchange-traded funds, and in commodity, currency, and financial-linked derivative instruments, including swap agreements, commodity options, futures and options on futures.

6    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (concluded)

MANAGED FUTURES STRATEGY FUND

Cumulative Fund Performance

† Initial investment has been adjusted for the maximum sales charge of 4.75%.

     AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/09

	A-Class												C-Class									H-Class
	(03/02/07)												(03/02/07)									(03/02/07)
	ONE			ONE			SINCE			SINCE			ONE			ONE			SINCE			ONE			SINCE
	YEAR			YEAR*			INCEPTION			INCEPTION*			YEAR			YEAR**			INCEPTION			YEAR			INCEPTION
MANAGED FUTURES STRATEGY FUND		-4.39	%		-8.93	%		3.85	%		2.08	%		-5.10	%		-6.05	%		3.08	%		-4.39	%		3.85	%
S&P DIVERSIFIED TRENDS INDICATOR		-5.88	%		-5.88	%		4.14	%		4.14	%		-5.88	%		-5.88	%		4.14	%		-5.88	%		4.14	%

*	Fund returns are calculated using the maximum sales charge of 4.75%.
**	Fund returns include a contingent deferred sales charge (“CDSC”) of 1% if redeemed within 12 months of purchase.

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 return. Returns are historical and include changes in principal and reinvested dividends and capital gains. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    7

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2009

     MANAGED FUTURES STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 56.0%(b)
Fannie Mae**
0.15% due 05/03/10	$	50,000,000	$	49,980,150
0.45% due 08/02/10		50,000,000		49,930,000
0.24% due 08/23/10		50,000,000		49,923,000
0.29% due 09/01/10		50,000,000		49,916,650
0.29% due 09/20/10		50,000,000		49,910,050
0.46% due 07/30/10		25,000,000		24,971,250
0.42% due 08/09/10		25,000,000		24,963,825
0.25% due 08/16/10		25,000,000		24,962,675
Farmer Mac*
0.38% due 03/25/10		50,000,000		49,994,450
0.44% due 10/18/10		50,000,000		49,884,400
0.20% due 06/01/10		25,000,000		24,984,575
Federal Farm Credit Bank*
0.49% due 04/05/10		50,000,000		49,987,350
Federal Home Loan Bank*
0.00% due 01/28/10		100,000,000		99,999,933
0.62% due 01/08/10		50,000,000		49,999,900
0.71% due 01/11/10		50,000,000		49,999,800
0.47% due 02/05/10		50,000,000		49,998,650
0.30% due 09/28/10		25,000,000		24,953,650
Freddie Mac**
0.22% due 07/19/10		250,000,000		249,727,750
0.85% due 01/19/10		50,000,000		49,999,600
0.86% due 01/26/10		50,000,000		49,999,400
0.20% due 06/28/10		50,000,000		49,963,550
0.85% due 02/08/10		50,000,000		49,958,681
0.20% due 07/06/10		50,000,000		49,949,150
0.27% due 09/15/10		30,000,000		29,947,080
Total Federal Agency
Discount Notes
(Cost $1,303,469,298)				1,303,905,519
FEDERAL AGENCY BONDS 26.0%(b)
Federal Agricultural
Mortgage Corp.
0.50% due 10/01/10		50,000,000		49,977,800
0.45% due 10/01/10		50,000,000		49,958,900
0.40% due 12/28/10		25,000,000		24,977,450
Federal Farm Credit Bank*
0.45% due 10/21/10		50,000,000		49,952,450
Federal Home Loan Bank*
1.10% due 03/30/10		50,000,000		50,114,500
1.10% due 03/11/10		50,000,000		50,089,250
0.87% due 01/26/10		50,000,000		50,022,300
1.12% due 06/30/10		25,000,000		25,004,600

	FACE		MARKET
	AMOUNT		VALUE
Federal Home Loan Banks*
0.57% due 12/29/10	$	75,000,000	$	74,993,175
0.50% due 10/29/10		50,000,000		49,975,500
0.50% due 10/29/10		50,000,000		49,975,250
0.50% due 09/29/10		41,685,000		41,635,520
0.48% due 05/11/10		25,000,000		25,024,650
0.57% due 07/06/10		15,000,000		15,018,480
Total Federal Agency Bonds
(Cost $606,900,010)				606,719,825
STRUCTURED NOTES 3.7%(b)††
Merrill Lynch & Co.,
S&P Diversified Trends
Indicator Price Return
Linked Notes 0.03%
due 05/20/10		20,000,000		20,083,926
Swedish Export Credit Corp.,
S&P Diversified Trends
Indicator Total Return
Linked Notes 0.00%
due 03/22/10		21,000,000		17,588,216
Goldman Sachs Group, Inc.,
S&P Diversified Trends
Indicator Total Return
Linked Notes 0.00%
due 06/09/10		15,000,000		14,403,209
Merrill Lynch & Co.,
S&P Diversified Trends
Indicator Price Return
Linked Notes 0.03%
due 06/24/10		15,000,000		13,405,323
Goldman Sachs Group, Inc.,
S&P Diversified Trends
Indicator Total Return
Linked Notes 0.00%
due 05/06/10		12,000,000		11,701,808
Swedish Export Credit Corp.,
S&P Diversified Trends
Indicator Total Return
Linked Notes 0.00%
due 10/04/10		10,000,000		9,254,268
Total Structured Notes
(Cost $93,000,000)				86,436,750

8    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT             See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MANAGED FUTURES STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS 10.6%(b)†
HSBC Group
issued 12/31/09 at 0.00%
due 01/04/10	$	89,571,596	$	89,571,596
Morgan Stanley
issued 12/31/09 at 0.00%
due 01/04/10		73,383,958		73,383,958
Mizuho Financial Group, Inc.
issued 12/31/09 at 0.00%
due 01/04/10		62,202,170		62,202,170
Deutsche Bank
issued 12/31/09 at 0.00%
due 01/04/10		21,583,517		21,583,517
Total Repurchase Agreements
(Cost $246,741,241)				246,741,241
Total Investments 96.3%
(Cost $2,250,110,549)			$	2,243,803,335
Other Assets in Excess of Liabilities – 3.7%			$	86,464,529
Net Assets – 100.0%			$	2,330,267,864
			Unrealized
		Contracts		Gain
COMMODITY FUTURES CONTRACTS PURCHASED(a)
March 2010 Copper
Futures Contracts
(Aggregate Market Value of Contracts $117,145,000)		1,400	$	12,253,418
March 2010 Soybean
Futures Contracts
(Aggregate Market Value of Contracts $131,848,875)		2,515		7,242,905
March 2010 Corn
Futures Contracts
(Aggregate Market Value of Contracts $76,060,750)		3,670		5,202,905
March 2010 Natural Gas
Futures Contracts
(Aggregate Market Value of Contracts $47,384,100)		855		2,713,142
February 2010 Gold 100 Oz
Futures Contracts
(Aggregate Market Value of Contracts $70,666,200)		645		2,073,292
March 2010 Gasoline RBOB
Futures Contracts
(Aggregate Market Value of Contracts $95,590,215)		1,095		1,867,190
March 2010 WTI Crude
Futures Contracts	��
(Aggregate Market Value of Contracts $184,368,000)		2,300		1,266,973

			UNREALIZED
	CONTRACTS		Gain (Loss)
March 2010 Wheat
Futures Contracts
(Aggregate Market Value
of Contracts $39,800,250)		1,470	$	1,174,422
March 2010 Cotton
Futures Contracts
(Aggregate Market Value
of Contracts $21,924,000)		580		1,090,719
March 2010 Heating Oil
Futures Contracts
(Aggregate Market Value
of Contracts $64,341,648)		720		805,311
February 2010 Lean Hogs
Futures Contracts
(Aggregate Market Value
of Contracts $34,899,200)		1,330		788,047
March 2010 Silver
Futures Contracts
(Aggregate Market Value
of Contracts $41,294,750)		490		442,370
March 2010 Cocoa
Futures Contracts
(Aggregate Market Value
of Contracts $20,739,600)		630		(257,625	)
February 2010 Live Cattle
Futures Contracts
(Aggregate Market Value
of Contracts $66,430,600)		1,930		(569,067	)
March 2010 Coffee
Futures Contracts
(Aggregate Market Value
of Contracts $29,303,438)		575		(1,182,451	)
(Total Aggregate Market Value of Contracts $1,041,796,626)			$	34,911,551
CURRENCY FUTURES CONTRACTS PURCHASED(a)
March 2010 Canadian Dollar
Futures Contracts
(Aggregate Market Value
of Contracts $21,116,640)		222	$	114,140
March 2010 Australian Dollar
Futures Contracts
(Aggregate Market Value
of Contracts $41,013,600)		460		(592,181	)
March 2010 Swiss Franc
Futures Contracts
(Aggregate Market Value
of Contracts $40,451,250)		335		(1,198,463	)
March 2010 British Pound
Futures Contracts
(Aggregate Market Value
of Contracts $101,965,813)		1,010		(1,643,757	)

See Notes to Financial Statements.                              THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT   |   9

CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded)

December 31, 2009

     MANAGED FUTURES STRATEGY FUND

			UNREALIZED
	CONTRACTS		LOSS
March 2010 EURO
Futures Contracts
(Aggregate Market Value
of Contracts $261,212,250)		1,460	$	(12,263,653	)
March 2010 Japanese Yen
Currency Futures Contracts
(Aggregate Market Value
of Contracts $241,135,813)		1,795		(19,083,397	)
(Total Aggregate Market Value of Contracts $706,895,365)			$	(34,667,311	)
FUTURES CONTRACTS PURCHASED(a)
March 2010 U.S. Treasury
10 Year Note Futures Contracts
(Aggregate Market Value
of Contracts $152,809,766)		1,325	$	(3,980,307	)
March 2010 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value
of Contracts $134,842,500)		1,170		(7,659,142	)
(Total Aggregate Market Value of Contracts $287,652,266)			$	(11,639,449	)
COMMODITY FUTURES CONTRACTS
SOLD SHORT(a)
March 2010 Sugar #11
Futures Contracts
(Aggregate Market Value
of Contracts $23,842,560)		800	$	(3,437,582	)

*	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 an exposure to the underlying benchmark greater than the face amount. The total exposure to the Benchmark is $272,436,750 as of December 31, 2009 — See Note 2.
(a)	Value determined based on Level 1 inputs — See Note 7.
(b)	Value determined based on Level 2 inputs — See Note 7.

10    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT             See Notes to Financial Statements.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES            

December 31, 2009 

	Managed Futures
	Strategy Fund
Assets
Investment Securities	$	1,997,062,094
Repurchase Agreements		246,741,241
Total Investments		2,243,803,335
Segregated Cash with Broker		92,282,524
Receivable for Fund Shares Sold		4,882,198
Investment Income Receivable		305
Other Assets		1,246,114
Total Assets		2,342,214,476
Liabilities
Variation Margin on Futures Contracts		1,122,565
Payable for Fund Shares Redeemed		3,920,116
Investment Advisory Fees Payable		1,728,169
Transfer Agent and Administrative Fees Payable		543,425
Distribution and Service Fees Payable		701,448
Portfolio Accounting Fees Payable		96,649
Custody Fees Payable		71,732
Other Accrued Fees		3,762,508
Total Liabilities		11,946,612
Net Assets	$	2,330,267,864
Net Assets Consist Of
Paid-In Capital	$	2,354,663,343
Undistributed Net Investment Loss		(1,951,889	)
Accumulated Net Realized Loss on Investments		(1,303,585	)
Net Unrealized Depreciation on Investments		(21,140,005	)
Net Assets	$	2,330,267,864
A-Class	$	636,082,734
C-Class		225,415,527
H-Class		1,468,769,603
Shares Outstanding
A-Class		23,724,061
C-Class		8,590,568
H-Class		54,782,966
Net Asset Values
A-Class	$	26.81
A-Class Maximum Offering Price*		28.15
C-Class		26.24
H-Class		26.81
Cost of Investments	$	2,250,110,549

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    11

CONSOLIDATED STATEMENT OF OPERATIONS            

Year Ended December 31, 2009 

	Managed Futures
	Strategy Fund
Investment Income
Interest	$	12,292,473
Total Income		12,292,473
Expenses
Investment Advisory Fees		19,500,260
Transfer Agent and Administrative Fees		4,829,805
Distribution & Service Fees:
A-Class		1,264,652
C-Class		1,925,778
H-Class		3,083,709
Licensing Fees		7,761,742
Registration Fees		664,980
Trustees’ Fees*		202,644
Custody Fees		544,288
Miscellaneous		3,215,359
Total Expenses		42,993,217
Less Expenses Waived by Adviser		(2,112,951	)
Total Waived Expenses		(2,112,951	)
Net Expenses		40,880,266
Net Investment Loss		(28,587,793	)
Realized And Unrealized Gain (loss) on Investments
Net Realized Gain (Loss) on:
Investment Securities		(11,254,413	)
Futures Contracts		(20,244,337	)
Total Net Realized Loss		(31,498,750	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(13,891,055	)
Futures Contracts		(8,529,791	)
Net Change in Unrealized Appreciation (Depreciation)		(22,420,846	)
Net Loss on Investments		(53,919,596	)
Net Decrease in Net Assets from Operations	$	(82,507,389	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

12    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

STATEMENTS OF CHANGES IN NET ASSETS

	Managed Futures
	Strategy Fund
	Year			Period
	Ended			April 1, 2008 to			Year
	December 31,			December 31,			Ended
	2009			2008*			March 31,
	(Consolidated)			(Consolidated)			2008
From Operations
Net Investment Income (Loss)	$	(28,587,793	)	$	(658,330	)	$	4,299,654
Net Realized Gain (Loss) on Investments		(31,498,750	)		34,890,315			9,166,125
Net Change in Unrealized Appreciation (Depreciation) on Investments		(22,420,846	)		(14,850,684	)		15,936,657
Net Increase (Decrease) in Net Assets from Operations		(82,507,389	)		19,381,301			29,402,436
Distributions to Shareholders from:
Net Investment Income
A-Class		—			(5,744,195	)		—
C-Class		—			(2,478,921	)		—
H-Class		—			(16,247,790	)		—
Realized Gain on Investments
A-Class		—			(4,364,931	)		(7,011	)
C-Class		—			(1,968,218	)		(2,198	)
H-Class		—			(12,879,105	)		(17,515	)
Total Distributions to Shareholders		—			(43,683,160	)		(26,724	)
Share Transactions
Proceeds from Shares Purchased
A-Class		611,325,857			264,904,255			117,885,098
C-Class		161,271,111			96,665,792			44,369,104
H-Class		1,313,253,028			761,284,247			307,063,434
Redemption Fees Collected
A-Class		56,863			147,367			30,370
C-Class		22,494			64,578			9,542
H-Class		146,000			426,993			79,960
Value of Shares Purchased through Dividend Reinvestment
A-Class		—			9,171,044			6,244
C-Class		—			4,038,290			2,079
H-Class		—			26,028,813			16,284
Cost of Shares Redeemed
A-Class		(254,647,105	)		(97,453,996	)		(20,213,507	)
C-Class		(52,321,662	)		(18,152,660	)		(3,549,917	)
H-Class		(629,429,517	)		(257,146,316	)		(49,792,127	)
Net Increase in Net Assets From Share Transactions		1,149,677,069			789,978,407			395,906,564
Net Increase in Net Assets		1,067,169,680			765,676,548			425,282,276
Net Assets—Beginning of Period		1,263,098,184			497,421,636			72,139,360
Net Assets—End of Period	$	2,330,267,864		$	1,263,098,184		$	497,421,636
Undistributed (Distributions in Excess of) Net Investment Income—End of Period	$	(1,951,889	)	$	(2,664,872	)	$	3,663,430

* The Fund changed its fiscal year end from March 31 to December 31 in 2008.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    13

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		Net Increase
						Realized		(Decrease)																		RATIOS TO
						and		in Net														NET				AVERAGE NET ASSETS:
	NET ASSET		Net			Unrealized		Asset Value		Distributions		Distributions								Net Increase		ASSET													Net					Net Assets,
	VALUE,		Investment			Gains		Resulting		from Net		from Net						Redemption		(Decrease)		VALUE,		Total											Investment			Portfolio		End of
	BEGINNING		Income			(Losses) on		from		Investment		Realized			Total			Fees		in Net Asset		END OF		Investment		Total			Net			Operating			Income			Turnover		Period (000’s
Year Ended	OF PERIOD		(Loss)†			Investments		Operations		Income		Gains			Distributions			Collected		Value		PERIOD		Return††		Expenses			Expenses			Expenses◊			(Loss)			Rate		omitted)
Managed Futures Strategy Fund A-Class
December 31, 2009n	$	28.04	$	(.39)		$	(.84)	$	(1.23)	$	—	$	—		$	—		$	—§	$	(1.23)	$	26.81		(4.39)%		2.16%			2.05%			2.05%			(1.42)%			125%	$	636,083
December 31, 20085n		28.26		(—)	§		.83		.83		(.57)		(.50)			(1.07)			.02		(.22)		28.04		2.96%		1.77%	**		1.77%	**		1.75%	**		(0.02)%	**		74%		298,987
March 31, 2008		25.03		.57			2.64		3.21		—		(—)	§		(—)	§		.02		3.23		28.26		12.92%		1.72%			1.72%			1.69%			2.15%			154%		128,744
March 31, 2007*		25.00		.09			(.06)		.03		—		—			—			—§		.03		25.03		0.12%		1.81%	**		1.81%	**		1.81%	**		2.06%	**		20%		23,655
Managed Futures Strategy Fund C-Class
December 31, 2009n		27.65		(.58)			(.83)		(1.41)		—		—			—			—§		(1.41)		26.24		(5.10)%		2.92%			2.81%			2.81%			(2.17)%			125%		225,416
December 31, 20085n		28.04		(.16)			.82		.66		(.57)		(.50)			(1.07)			.02		(.39)		27.65		2.37%		2.51%	**		2.51%	**		2.49%	**		(0.78)%	**		74%		125,601
March 31, 2008		25.02		.35			2.65		3.00		—		(—)	§		(—)	§		.02		3.02		28.04		12.08%		2.48%			2.48%			2.45%			1.30%			154%		46,005
March 31, 2007*		25.00		.05			(.03)		.02		—		—			—			—§		.02		25.02		0.08%		2.60%	**		2.60%	**		2.60%	**		1.15%	**		20%		2,703
Managed Futures Strategy Fund H-Class
December 31, 2009n		28.04		(.38)			(.85)		(1.23)		—		—			—			—§		(1.23)		26.81		(4.39)%		2.16%			2.05%			2.05%			(1.41)%			125%		1,468,770
December 31, 20085n		28.26		(.01)			.84		.83		(.57)		(.50)			(1.07)			.02		(.22)		28.04		2.96%		1.77%	**		1.77%	**		1.75%	**		(0.03)%	**		74%		838,511
March 31, 2008		25.03		.58			2.63		3.21		—		(—)	§		(—)	§		.02		3.23		28.26		12.92%		1.73%			1.73%			1.70%			2.17%			154%		322,673
March 31, 2007*		25.00		.09			(.06)		.03		—		—			—			—§		.03		25.03		0.12%		1.77%	**		1.77%	**		1.77%	**		2.19%	**		20%		45,781

*	Since the commencement of operations: March 2, 2007.
**	Annualized.
†	Calculated using the average daily shares outstanding for the period.
††	Total investment return does not reflect the impact of any applicable sales charges and has not been annualized.
◊	Operating expenses exclude short dividends expense.
5	The Fund changed its fiscal year end from March 31 to December 31 in 2008.
n	Consolidated.
§	Less than $.01 per share.

14    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization, Consolidation of Subsidiary and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company. The Trust offers five separate classes of shares, Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, and H-Class shares. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Sales of shares of each Class are made without a sales charge at the NAV, with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At December 31, 2009, the Trust consisted of fifty-five separate Funds. This report covers the Managed Futures Strategy Fund (the “Fund”). Only A-Class, C-Class and H-Class shares have been issued by the Fund. All share classes are subject to a 1% redemption fee when shares are redeemed within 30 days of purchase.

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

The consolidated financial statements include the accounts of a wholly-owned and controlled Cayman Islands subsidiary, (the “Subsidiary”). Significant inter-company accounts and transactions have been eliminated in consolidation for the Fund.

The Fund 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 the Fund’s investment objectives and policies.

A summary of the Fund’s investment in the Subsidiary is as follows:

			Subsidiary		% of Total
	Inception		Net Assets at		Net Assets at
	Date of		December 31,		December 31,
	Subsidiary		2009		2009
Managed Futures Strategy Fund		05/01/08	$	290,620,622		12.5	%

Significant Accounting Policies

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles

and are consistently followed by the Trust. 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. All time references are based on Eastern Time.

A. Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, usually as of 4:00 p.m. 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 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 and repurchase agreements are valued at amortized cost, which approximates market value.

Structured notes are valued in accordance with the terms of their agreement at the value of the underlying index close, usually 4:00 p.m., adjusted for any interest accruals and financing charges. If the securities comprising the underlying index cease trading before the Fund’s close of business, the index will be fair valued with the use of an appropriate market indicator.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 sale transactions, rather

than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short or incur rebate charges to borrow certain securities.

E. 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.

F. 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.

G. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates 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.

H. The Fund 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

16    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

held as collateral for investments in derivative instruments such as futures contracts and index swap agreements.

I. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the Classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees related to A-Class shares and H-Class shares and service and distribution fees related to C-Class shares, are charged directly to such Classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

J. Throughout the normal course of business, the Fund enter into contracts that contains a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects 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 structured notes, 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.

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 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.

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.

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 counter-party’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 Fund bears 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.

In conjunction with the use of short sales, options, futures, options on futures, and swap agreements, the Fund is required to maintain collateral in various forms. The Fund uses, 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, structured notes, 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 RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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. Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Fund seeks to gain exposure to its benchmark by investing in commodity, currency, and financial-linked derivative instruments, including swap agreements, commodity options, futures and options on futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Fund’s net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Fund’s
Fund	net assets on a daily basis
Managed Futures Strategy Fund		85	%

The following is a summary of the location of derivative investments on the Fund’s Statements of Assets and Liabilities as of December 31, 2009:

	Location on the Statements of Assets and Liabilities
Derivative Investments Type	Asset Derivatives	Liability Derivatives
Interest rate contracts	Investment Securities	Investment Securities
Currency/Commodity contracts	Variation Margin on Futures Contracts	Variation Margin on Futures Contracts

The following table sets forth the fair value of the Fund’s derivative contracts by primary risk exposure as of December 31, 2009:

Asset Derivative Investments Value
	Futures		Futures		Futures
	Currency		Commodity		Interest Rate		Total Value at
Fund	Contracts*		Contracts*		Contracts*		December 31, 2009
Managed Futures Strategy Fund	$	114,140	$	36,920,694	$	—		$37,034,834

Liability Derivative Investments Value
	Futures		Futures		Futures
	Currency		Commodity		Interest Rate		Total Value at
Fund	Contracts*		Contracts*		Contracts*		December 31, 2009
Managed Futures Strategy Fund	$	34,781,451	$	5,446,725		$11,639,449		$51,867,625

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund’s Statements of Operations as of December 31, 2009:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Currency/Commodity/Interest rate contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures contracts

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statement of Operations categorized by primary risk exposure as of December 31, 2009:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
	Futures		Futures			Futures
	Currency		Commodity			Interest Rate
Fund	Contracts		Contracts			Contracts			Total
Managed Futures Strategy Fund	$	19,955,751	$	(24,488,385	)	$	(15,711,703	)	$	(20,244,337	)

18    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations
	Futures			Futures		Futures
	Currency			Commodity		Interest Rate
Fund	Contracts			Contracts		Contracts			Total
Managed Futures Strategy Fund	$	(23,507,103	)	$	29,521,773	$	(14,544,461	)	$	(8,529,791	)

4. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Fund pays Rydex Investments investment advisory fees calculated at an annualized rate of 0.90% of the average daily net assets. Rydex Investments provides transfer agent and administrative services to the Fund calculated at an annualized rate of 0.25% of the average daily net assets.

Rydex Investments also provides accounting services to the Fund 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.

Rydex Investments engages external service providers to perform other necessary services for the Fund, such as accounting and audit related services, legal services, custody, printing and mailing, etc., on a pass through basis. Such expenses are allocated to the Fund based on relative net assets. Organizational and setup costs for new funds are paid by the Trust.

The Trust has adopted a Distribution Plan applicable to its A-Class shares and H-Class shares for which the Distributor and other firms that provide distribution and/or shareholder services (“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 Trust has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates the shareholder’s financial advisor for providing on-going services to the shareholder. The annual distribution fee of 0.75% reimburses the Distributor for paying the shareholder’s financial advisor an ongoing sales commission. The Distributor advances the first year’s service and distribution fees to the Financial Advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended December 31, 2009, the Distributor retained sales charges of $734,427 relating to sales of A Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

5. Federal Income Tax Information

The Fund intends to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders. Therefore, no Federal income tax provision has been recorded.

Tax positions taken or expected to be taken in the course of preparing the Fund’s 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 Fund’s tax positions taken on federal income tax returns for all open tax years (fiscal years 2007 — 2009), and has concluded that no provision for income tax was required in the Fund’s 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 may include net operating losses not utilized during the current period, capital loss carryforward expired, and the utilization of earnings and profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    19

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

At December 31, 2009, 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:

The tax character of distributions paid during the year ended December 31, 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Managed Futures Strategy Fund	$	—	$	—	$	—

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
Managed Futures Strategy Fund	$	24,351,793	$	19,331,367	$	43,683,160

The tax character of distributions paid during the year ended March 31, 2008 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Managed Futures Strategy Fund	$	26,724	$	—	$	26,724

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. The tax character of distributable earnings/(accumulated losses) at December 31, 2009 was as follows:

	Undistributed		Undistributed		Net
	Ordinary		Long-Term		Unrealized		Capital Loss
Fund	Income		Capital Gain		Appreciation		Carryforward
Managed Futures Strategy Fund	$	—	$	—	$	23,214,561	$	(17,166,210	)1

Capital Loss Carryforward amounts may be limited due to U.S. Treasury Regulations.

¹ Expires in 2017.

At December 31, 2009, 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
Managed Futures Strategy Fund	$	2,252,062,743	$	547,146	$	(8,806,554	)	$	(8,259,408	)

Pursuant to Federal income tax regulations applicable to investment companies, the Fund has 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 period ended December 31, 2009, the following amount of realized capital losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2010:

Fund	Capital
Managed Futures Strategy Fund	$	(30,444,135	)

6. Repurchase Agreements

The Fund transfers 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 Fund’s 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, 2009, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
HSBC Group	0.00% due 01/04/10	$	415,000,000	$	415,000,000	$	415,000,000
Morgan Stanley	0.00% due 01/04/10		340,000,000		340,000,000		340,000,000
Mizuho Financial Group, Inc.	0.00% due 01/04/10		288,192,929		288,192,929		288,192,929
Deutsche Bank	0.00% due 01/04/10		100,000,000		100,000,000		100,000,000
				$	1,143,192,929	$	1,143,192,929

20    |    THE RYDEX|SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

At December 31, 2009, 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		01/31/14 — 12/31/16		1.75% — 3.25%	$	458,850,000		$	454,466,061
U.S. Treasury Bonds		02/15/20 — 08/15/23		6.25% — 8.50%		305,538,800			423,300,066
U.S. Treasury Bill		06/17/10		0.00%		294,254,600			293,956,814
								$	1,171,722,941

In the event of counterparty default, the Fund has the right to collect the collateral to offset losses incurred. There is potential loss to the Fund in the event the Fund is 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 Fund seek to assert its rights. The Fund’s 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 Fund enters into repurchase agreements to evaluate potential risks.

7. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

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, 2009:

	Level 1		Level 1			Level 2		Level 2
	Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	Total
Assets
Managed Futures Strategy Fund	$	—	$	—		$	2,243,803,335	$	—		$	2,243,803,335
Liabilities
Managed Futures Strategy Fund		—		14,832,791			—		—			14,832,791

* 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, 2009, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	Managed Futures
	Strategy Fund
Purchases	$	142,992,000
Sales	$	156,801,462

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    21

NOTES TO CONSOLIDATED 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:

							Shares Purchased through
	Shares Purchased						Dividend Reinvestment						Shares Redeemed						Net Shares Purchased
	Year		Period				Year		Period				Year		Period				Year		Period
	Ended		April 1, 2008 to		Year Ended		Ended		April 1, 2008 to		Year Ended		Ended		April 1, 2008 to		Year Ended		Ended		April 1, 2008 to		Year Ended
	December 31,		December 31,		March 31,		December 31,		December 31,		March 31,		December 31,		December 31,		March 31,		December 31,		December 31,		March 31,
	2009		2008*		2008		2009		2008*		2008		2009		2008*		2008		2009		2008*		2008
Managed Futures Strategy Fund
A-Class		22,459,882		9,257,513		4,382,451		(50)		318,162		235		(9,398,101)		(3,469,129)		(771,855)		13,061,731		6,106,546		3,610,831
C-Class		6,015,658		3,413,075		1,663,914		—		141,959		79		(1,967,210)		(653,598)		(131,337)		4,048,448		2,901,436		1,532,656
H-Class		48,159,122		26,656,212		11,517,109		13		902,667		614		(23,279,169)		(9,074,000)		(1,928,419)		24,879,966		18,484,879		9,589,304

* The Fund changed its fiscal year from March 31 to December 31 in 2008.

22    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (concluded)

10. Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 331/3% of a Fund’s net assets, 331/3% of a Fund’s assets held by the Custodian or 331/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2010. As of and for the year ended December 31, 2009, the Funds did not have any outstanding borrowings under this agreement.

11. New Accounting Pronouncements

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented in Note 7. The new disclosures and clarifications of existing disclosures are generally effective for the Funds’ year ending December 31, 2010 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

12. Subsequent Events

Management has evaluated events or transactions that may have occurred since December 31, 2009, that would merit recognition or disclosure in the financial statements. This evaluation was completed through February 26, 2010, the date the financial statements were available to be issued.

On February 15, 2010, Security Benefit Mutual Holding Company (“SBMHC”), the parent company of Security Benefit Corporation (“SBC”) and the ultimate parent company of Rydex Investments, entered into a Purchase and Sale Agreement whereby Guggenheim SBC Holdings LLC (“Guggenheim Holdings”) will, subject to regulatory approval, policyholder approval and approval by the shareholders of the mutual funds and exchange traded funds sponsored by affiliates of SBMHC, purchase all of the issued and outstanding stock of SBC (the “SBC Purchase Transaction”). The SBC Purchase Transaction would result in a change of control of Rydex Investments whereby SBC and its subsidiaries would be wholly-owned by Guggenheim Holdings. If the SBC Purchase Transaction does not close, other than as a result of a breach by Guggenheim Holdings or for certain other reasons, then SBC will sell its asset management business to Guggenheim Holdings, which would include Rydex Investments and would result in a change of control of Rydex Investments. The sale of SBC’s asset management business, like the SBC Purchase Transaction, would be subject to regulatory approval and approval by the shareholders of the mutual funds and exchange traded funds sponsored by affiliates of SBMHC.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    23

REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of Rydex Series Funds:

We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of RYDEX | SGI Managed Futures Strategy Fund (one of the series constituting the Rydex Series Funds) (the “Fund”) as of December 31, 2009, and the related consolidated statement of operations for the year then ended, and the statements of changes in net assets and financial highlights for each of the periods indicated therein (consolidated for the periods ended December 31, 2009 and 2008). These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

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 Fund’s 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 Fund’s 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, 2009, 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 consolidated financial position of RYDEX | SGI Managed Futures Strategy Fund series of the Rydex Series Funds at December 31, 2009, the consolidated results of its operations for the year then ended, and the changes in its net assets and its financial highlights for each of the periods indicated therein (consolidated for the periods ended December 31, 2009 and 2008), in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 26, 2010

24    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended 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.

Rydex Investments Board Review and Approval of the Investment Advisory Agreement

The Investment Company Act of 1940 (the “1940 Act”) requires that the initial approval of, as well as the continuation of, a fund’s investment advisory agreement be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. In addition, the Securities and Exchange Commission (the “SEC”) takes the position that, as part of their fiduciary duties with respect to fund fees, fund boards are required to evaluate the material factors applicable to a decision to approve (or renew) an investment advisory agreement.

Consistent with these responsibilities, the Rydex Series Funds Board of Trustees (the “Board”) generally calls and holds one meeting each year that is dedicated to considering whether to renew the investment advisory agreement between Rydex Series Funds (the “Trust”) and PADCO Advisors, Inc., which does business under the name Rydex Investments (“Rydex Investments”) (the “Advisory Agreement”), with respect to existing funds in the Trust, including the funds discussed in this Annual Report, the Managed Futures Strategy Fund, the Long/Short Commodities Strategy Fund, the Multi-Hedge Strategies Fund, and the Commodities Strategy Fund (each a “Fund” and collectively, the “Funds”), and to reviewing certain other agreements pursuant to which Rydex Investments provides investment advisory services to certain other registered investment companies. In preparation for the meeting, the Board requests and reviews a wide variety of materials provided by Rydex Investments, including information about Rydex Investments’ affiliates, personnel and operations. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to Fund operations and performance. The Board also receives a memorandum from Fund counsel regarding the responsibilities of the Board for the approval of investment advisory agreements. In addition, the Independent Trustees receive advice from independent counsel to the Independent Trustees, meet in executive session outside the presence of Fund management, and participate in question and answer sessions with representatives of Rydex Investments.

At an in-person meeting held on August 25, 2009, called for the purpose of among other things, voting on the renewal of the Advisory Agreement, the Board, including all of the Independent Trustees (the “Annual Renewal Meeting”), considered and approved the selection of Rydex Investments as the Funds’ investment advisor and the continuance of the Advisory Agreement for an additional one-year period, based on its review of qualitative and quantitative information provided by Rydex Investments.

Board Considerations in Approving the Continuation of the Advisory Agreement

In preparation for the Annual Renewal Meeting, the Board requested and received written materials from Rydex Investments about: (a) the quality of Rydex Investments’ investment management and other services; (b) Rydex Investments’ investment management personnel; (c) Rydex Investments’ operations and financial condition; (d) Rydex Investments’ brokerage practices (including any soft dollar arrangements) and investment strategies; (e) the level of the advisory fees that Rydex Investments charges the Funds compared with the fees it charges to comparable mutual funds or accounts; (f) each Fund’s overall fees

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    25

OTHER INFORMATION (Unaudited) (continued)

and operating expenses compared with similar mutual funds; (g) the level of Rydex Investments’ profitability from its Fund-related operations; (h) Rydex Investments’ compliance systems; (i) Rydex Investments’ policies and compliance procedures applicable to personal securities transactions; (j) Rydex Investments’ reputation, expertise and resources in the financial markets; and (k) Fund performance compared with similar mutual funds. Certain of these considerations are discussed in more detail below. In its deliberations at the Annual Renewal Meeting, the Board did not identify any single piece of information that was all-important or controlling. Based on the Board’s deliberations and its evaluation of the information referenced above and described in more detail below, the Board, including all of the Independent Trustees, unanimously: (a) concluded that terms of the Advisory Agreement are fair and reasonable; (b) concluded that Rydex Investments’ fees were reasonable in light of the services that Rydex Investments provides to each of the Funds; and (c) agreed to renew the Advisory Agreement for an additional one-year term.

In approving the continuation of the Advisory Agreement at the Annual Renewal Meeting, the Board, including the Independent Trustees advised by independent counsel, considered the factors discussed below.

Nature, Extent And Quality Of Services Provided By Rydex Investments

At the Annual Renewal Meeting, the Board reviewed the scope of services to be provided by Rydex Investments under the Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by Rydex Investments for the past year and the scope of services required to be provided by Rydex Investments for the upcoming year. In reviewing the scope of services provided to the Funds by Rydex Investments, the Board reviewed and discussed Rydex Investments’ investment experience, noting that Rydex Investments and its affiliates have committed significant resources over time to the support of the Funds. The Board also considered Rydex Investments’ compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that Rydex Investments provides information regarding portfolio management and compliance to the Board on a periodic basis in connection with regularly scheduled meetings of the Board. In addition to the above considerations, the Board reviewed and considered Rydex Investments’ investment processes and strategies, and matters related to Rydex Investments’ portfolio transaction policies and procedures. In addition, the Board reviewed and considered each Fund’s investment in wholly-owned and controlled Cayman Islands subsidiaries (each a “Subsidiary”), and noted that each Subsidiary has entered into a separate advisory agreement with Rydex Investments for the management of that Subsidiary’s portfolio pursuant to which the Subsidiary pays Rydex Investments a management fee at the same rate that the Subsidiary’s corresponding Fund pays Rydex Investments. The Board noted that Rydex Investments has contractually agreed to waive the management fee it receives from each Fund in an amount equal to the management fee paid to Rydex Investments by each Fund’s Subsidiary and that the contractual fee waiver will continue in effect for so long as each Fund invests in its Subsidiary. The Board further noted that the contractual fee waiver may not be terminated by Rydex Investments unless the Board approves such termination. With regard to the Commodities Strategy Fund, the Board also noted the substantial volume of portfolio trades and shareholder transaction activity, in general, processed by Rydex Investments due to the unlimited exchange policy of the Fund. Based on this review, the Board concluded that the nature, extent, and quality of services to be provided by Rydex Investments to the Funds under the Advisory Agreement were appropriate and continued to support the Board’s original selection of Rydex Investments as investment adviser to the Funds.

Fund Expenses And Performance Of The Funds And Rydex Investments

At the Annual Renewal Meeting, the Board reviewed statistical information prepared by Rydex Investments regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other funds registered under the 1940 Act determined by Rydex Investments to comprise each Fund’s applicable peer group. Because few funds seek to provide unlimited exchange privileges similar to those of the Commodities Strategy Fund, the Commodities Strategy Fund’s peer group is generally limited to the funds of two unaffiliated mutual fund families. In addition, the Board reviewed statistical information prepared by Rydex Investments relating to the performance of each Fund, as well as each Fund’s (with the exception of the Multi-Hedge Strategies Fund) ability to successfully track its benchmark over time, and a comparison of each Fund’s performance to funds with similar investment objectives for the same periods and to appropriate indices/benchmarks, in light of total return, yield and market trends. The Board further noted that despite the lack of a sizeable peer group for certain of the Funds, the peer fund information presented to the Board was meaningful because the peer funds’ investment objectives and strategies were closely aligned with those of the Funds. The Board also noted that the investment advisory fees for the Funds were equivalent to those of their peers and that the overall expenses for the Funds were only slightly higher than the total expenses of the peer funds, due in part to differing

26    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited) (concluded)

share classes and distribution fees. Based on this review, the Board concluded that the investment advisory fees and expense levels and the historical performance of the Funds, as managed by Rydex Investments, as compared to the investment advisory fees and expense levels and performance of the peer funds, were satisfactory for the purposes of approving the continuance of the Advisory Agreement.

Costs Of Services Provided To The Funds And Profits Realized By Rydex Investments And Its Affiliates

At the Annual Renewal Meeting, the Board reviewed information about the profitability of the Funds to Rydex Investments based on the advisory fees payable under the Advisory Agreement for the last calendar year. Rydex Investments also presented the Board with material discussing its methodology for determining the level of advisory fees assessable to the Funds. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to Rydex Investments. The Board also reviewed information regarding direct revenue received by Rydex Investments and ancillary revenue received by Rydex Investments and/or its affiliates in connection with the services provided to the Funds by Rydex Investments (as discussed below) and/or its affiliates. The Board also discussed Rydex Investments’ profit margin as reflected in Rydex Investments’ profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits to be realized by Rydex Investments and its affiliates under the Advisory Agreement and from other relationships between the Funds and Rydex Investments and/or its affiliates, if any, were within the range the Board considered reasonable and appropriate.

Economies Of Scale

In connection with its review of the Funds’ profitability analysis at the Annual Renewal Meeting, the Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ asset levels. The Board noted that the Advisory Agreement did not provide for any breakpoints in the investment advisory fees as a result of increases in the asset levels of the Funds. The Board also noted that though Rydex Investments’ assets under management were significant, the amount is spread among more than 100 funds. Further limiting the realization of economies of scale, is the ability of shareholders of many of the funds, including the Commodities Strategy Fund, to engage in unlimited trading. The Board also reviewed and considered Rydex Investments’ historic profitability as investment adviser to the Funds and determined that reductions in advisory fees or additions of breakpoints were not warranted at this juncture. Based on this review, the Board, recognizing its responsibility to consider this issue at least annually, determined that the economies of scale, if any, were de minimis.

Other Benefits To Rydex Investments And/Or Its Affiliates

At the Annual Renewal Meeting, in addition to evaluating the services provided by Rydex Investments, the Board also considered the nature, extent, quality and cost of the administrative, distribution, and shareholder services performed by Rydex Investments’ affiliates under separate agreements. The Board noted that Rydex Investments reports its use of soft dollars to the Board on a quarterly basis, as well as any portfolio transactions on behalf of the Funds placed through an affiliate of the Funds or Rydex Investments pursuant to Rule 17e-1 under the 1940 Act. Based on its review, the Board concluded that the nature and quality of the services provided by Rydex Investments’ affiliates to the Trust will benefit the Funds’ shareholders, and that any ancillary benefits would not be disadvantageous to the Funds’ shareholders, particularly in light of the Board’s view that the Funds’ shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment strategies and services.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    27

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.

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)

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

28    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	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); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nick Bonos* Vice President and Treasurer (1963)	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 (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); 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, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    29

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and 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.

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DECEMBER 31 , 2009

RYDEX SERIES FUNDS ANNUAL REPORT

ALTERNATIVE INVESTMENT FUNDS

RYDEX|SGI LONG/SHORT COMMODITIES STRATEGY FUND

RYDEX|SGI MULTI-HEDGE STRATEGIES FUND
(Formerly, Absolute Return Strategies Fund)

SPECIALTY FUND

RYDEX COMMODITIES STRATEGY FUND

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

LETTER TO OUR SHAREHOLDERS   2

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

PERFORMANCE REPORTS AND FUND PROFILES   6

CONSOLIDATED SCHEDULES OF INVESTMENTS   12

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES   26

STATEMENTS OF OPERATIONS   27

STATEMENTS OF CHANGES IN NET ASSETS   28

FINANCIAL HIGHLIGHTS   30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   32

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   45

OTHER INFORMATION   46

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   49

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

On September 15, 2009, Federal Reserve (Fed) Chairman Ben Bernanke stated that “the recession is very likely over.” Indications are that we are in fact emerging from what has been termed the “Great Recession,” but significant risks linger due to the aftershocks of the 2008 financial and liquidity crisis.

Despite the strong advance to end the year, 2009 marked the end of one of the all-time worst decades of performance for the U.S. equity markets, with an average annual return of -.95%. However, economic trends over the last year suggest that conditions are improving. One sign is an exceptionally strong equity market. From March 9 (the market’s low point) until the end of 2009, the U.S. equity market was up 67.80% as measured by the S&P 500^® Index. Strong equity returns across multiple indices, including the MSCI EAFE Index^® (up 32.43% for the year), reflected investors’ increased appetite for risk.

More signs of economic improvement

Emerging markets posted even stronger returns—the MSCI Emerging Markets Index, for instance, was up 78.58% in 2009. Additionally, all 10 underlying economic sectors posted positive returns during the one-year period, with information technology (59.92%) and materials (45.22%) leading the way. Among the laggards for the year, utilities (6.80%) and telecom (2.63%) still managed to produce positive returns. Along with traditional assets, hedge fund managers enjoyed the favorable market environment in 2009 with returns of 20.04% as measured by the HFRI Fund Weighted Composite Index, which is an equal weighted index of more than 2,000 single manager hedge funds. Those strong returns were in contrast to a poor showing in 2008, when the composite index was down 19%. Another good sign: After a significant spike at the height of the financial crisis in the fall of 2008, implied market volatility levels as measured by the VIX Index have steadily trended down to more normal levels.

Improving housing conditions and increases in consumer spending—combined with significant reduction of inventories—lifted the U.S. economy out of recession in the third quarter of 2009. Real GDP grew at a rate of 2.2% for the quarter. U.S. consumer confidence, as measured by the Conference Board Consumer Confidence Index, rose in December to 52.9 —the second straight month of improvement. Consumer outlook has improved somewhat from early in 2009, although concerns relating to the job market continue to weigh on consumers. Another sign of stronger economic conditions is existing home sales, which continued to improve—in November, existing home sales increased 7.4% from the prior month.

Reasons for caution in 2010

While many indicators are positive, certain risks remain. One of the major areas of concern is U.S. employment. The pace of job losses has slowed considerably from late 2008 and early 2009, when the change to non-farm payrolls shed as much as 741,000 jobs in a month. However, in December, despite modest growth in the prior month, 85,000 jobs were lost. The unemployment rate remained unchanged at 10% only due to the fact that the labor force declined by 661,000 workers.

Looking at 2010, some questions remain. How (and in what timeframe) will the Fed orchestrate an exit to the massive amount of quantitative easing it has implemented? Will inflationary pressures force the Fed to raise rates prematurely or will excess productive capacity counter those risks? How will the government grapple with deficit issues while promoting job growth necessary to support the fragile economy?

So far, the Fed has signaled that it will maintain an “exceptionally low” interest rate target for some time—in fact, there is a reasonable chance that the Fed will not increase rates until early 2011. If financial conditions continue to improve, the Fed will not need to further expand its credit easing policies and may

2    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

LETTER TO OUR SHAREHOLDERS (concluded)

begin an orderly exit to the existing programs. The major risks for the U.S. economy include long-run negative implications to carrying large budget deficits. Labor conditions also factor largely into the equation, with the risk of continued rising unemployment undermining the economic recovery.

In any case, the broad array of product offerings at Rydex|SGI can help investors either hedge or augment exposures to the equity or fixed-income markets, as well as introduce alternative assets and strategies into a portfolio to improve overall diversification. Thank you for the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

Performance displayed represents past performance, which is no guarantee of future results.

Fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call 800.820.0888 or visit www.rydex-sgi.com.

THE RYDEX | SGI SERIES FUNDS 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, 2009 and ending December 31, 2009.

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.

Certain retirement plans such as IRA, SEP, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

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 | SGI SERIES FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

				Beginning		Ending		Expenses
	Expense			Account Value		Account Value		Paid During
	Ratio		†	June 30, 2009		December 31, 2009		Period		*
Table 1. Based on actual Fund return
Long/Short Commodities Strategy Fund
A-Class		1.87	%	$	1,000.00	$	953.30	$	9.21
C-Class		2.63	%		1,000.00		948.90		12.92
H-Class		1.87	%		1,000.00		952.90		9.20
Multi-Hedge Strategies Fund
A-Class		2.44	%		1,000.00		1,019.80		12.42
C-Class		3.16	%		1,000.00		1,015.80		16.06
H-Class		2.37	%		1,000.00		1,019.80		12.07
Commodities Strategy Fund
A-Class		1.45	%		1,000.00		1,033.40		7.43
C-Class		2.22	%		1,000.00		1,029.30		11.36
H-Class		1.44	%		1,000.00		1,033.40		7.38
Table 2. Based on hypothetical 5% return (before expenses)
Long/Short Commodities Strategy Fund
A-Class		1.87	%		1,000.00		1,015.78		9.50
C-Class		2.63	%		1,000.00		1,011.95		13.34
H-Class		1.87	%		1,000.00		1,015.78		9.50
Multi-Hedge Strategies Fund
A-Class		2.44	%		1,000.00		1,014.57		12.38
C-Class		3.16	%		1,000.00		1,010.84		16.00
H-Class		2.37	%		1,000.00		1,014.72		12.03
Commodities Strategy Fund
A-Class		1.45	%		1,000.00		1,017.90		7.37
C-Class		2.22	%		1,000.00		1,014.01		11.27
H-Class		1.44	%		1,000.00		1,017.95		7.32

*	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 the number of days in the current fiscal year.
†	This ratio represents annualized Total Expenses, which include dividend expense from securities sold short. Excluding short dividend expense and prime broker interest expense, the operating expense ratio would be 1.02%, 1.02% and 1.02% lower in the Multi-Hedge Strategies Fund for the A-Class, C-Class and H-Class, respectively.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

LONG/SHORT COMMODITIES STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark that measures trends in the commodity futures markets on a daily basis. The Fund’s current benchmark is the JPMorgan Core Commodity-Investable Global Asset Rotator Sigma Long-Short Total Return Index (the “underlying index” or the “C-IGAR Sigma”).

Inception: June 25, 2009

The Rydex|SGI Long/Short Commodities Strategy Fund’s inception date was June 25, 2009. From inception through December 31, 2009, the Fund’s H-Class returned -3.76%, compared with 0.06% for its benchmark, the C-IGAR Sigma Index. Lead, natural gas and gold were among the commodities which provided the most performance to the Index during the year. Brent crude oil and corn were among the commodities which provided the least performance to the C-IGAR Sigma Index during the year. At year end, seven components were long and one component was short. The long components were gasoline, soybeans, silver and all four industrial metals. The only short component at year end was wheat.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	June 25, 2009
C-Class	June 25, 2009
H-Class	June 25, 2009

The Fund invests principally in commodity-linked instruments including structured notes, exchange-traded funds, and in commodity-linked derivative instruments, including swap agreements, commodity options, futures and options futures.

6    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

LONG/SHORT COMMODITIES STRATEGY FUND

Cumulative Fund Performance

† Initial investment has been adjusted for the maximum sales charge of 4.75% .

TOTAL RETURNS FOR THE PERIOD ENDED 12/31/09

	A-Class						C-Class						H-Class
	(06/25/09)						(06/25/09)						(06/25/09)
	SINCE			SINCE			SINCE			SINCE			SINCE
	INCEPTION			INCEPTION*			INCEPTION			INCEPTION**			INCEPTION
LONG/SHORT COMMODITIES STRATEGY FUND		-3.72	%		-8.30	%		-4.16	%		-5.12	%		-3.76	%
S&P 500 INDEX		22.50	%		22.50	%		22.50	%		22.50	%		22.50	%
C-IGAR SIGMA LONG-SHORT TOTAL RETURN INDEX		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%

*	Fund returns are calculated using the maximum sales charge of 4.75% .
**	Fund returns include a contingent deferred sales charge (“CDSC”) of 1% if redeemed within 12 months of purchase.

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 C-IGAR Sigma Long-Short 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. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    7

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

MULTI-HEDGE STRATEGIES FUND

(Formerly, Absolute Return Strategies Fund)

OBJECTIVE: Seeks long-term capital appreciation with less risk than traditional equity funds.

Inception: September 19, 2005

During 2009, the objective for the fund was changed to focus on the components of hedge fund performance which provide the greatest diversification benefit to a portfolio. The old objective focused on tracking hedge fund performance in general. The new objective focuses on generating long-term capital appreciation while managing portfolio risk.

For the one-year period ended December 31, 2009, Multi-Hedge Strategies Fund’s H-Class returned -2.65%, as opposed to its benchmark, the HFRX Global Hedge Fund Index, which ended the year up 13.17% . Three (equity long/short, global macro and merger arbitrage) of the five hedged strategies employed by the Fund contributed positive returns to the fund while the two others (equity market neutral and fixed income) detracted from performance. Our equity long/short exposure contributed the most to returns, 3.2%, as one would expect given the strong equity market rally. The global macro strategy also contributed positive returns to Fund performance adding 1.2% . In 2009, macro funds were down 8.8% on average according to the Investable HFR indices. We are pleased with the performance of this strategy relative to this benchmark. Merger Arbitrage contributed .58% to Fund performance. Our implementation of this strategy returned 6.7%, trailing the Investable HFR Merger Arbitrage Index by 1.4% . Due to individual position constraints and the low level of deal volume, our merger arbitrage portfolio was de-leveraged relative to other funds.

Equity Market Neutral struggled in 2009, detracting 2.4% from Fund performance. Momentum-based equity selection strategies had a particularly challenging year, losing more than 30%. Value- and growth-based strategies did not perform as poorly, but both were in negative territory as well. In June, we transitioned to a single optimization of our equity market neutral basket from separate optimizations for value, growth and momentum. We believe this will provide a more balanced market neutral portfolio. Over the course of the second half of 2009, this portfolio returned 1.5% versus a loss of 2.2% for the Investable HFR Equity Market Neutral Index.

Our fixed income strategies, which consist of government bond yield and spread trades, subtracted 0.2% from Fund performance during the year. These strategies are a small component of the HFR Relative Value sub-index. While this broader index did extremely well, returning 38.5% in 2009, our lack of exposure to other elements of this Index, such as Convertible Arbitrage, was the primary reason for the Fund’s underperformance of the broad Investable HFR Global Index.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	September 19, 2005
C-Class	September 19, 2005
H-Class	September 19, 2005

Ten Largest Long Holdings
(% of Total Net Assets)
BJ Services Co.	1.5	%
Sun Microsystems, Inc.	1.4	%
Affiliated Computer Services, Inc. — Class A	1.3	%
Marvel Entertainment, Inc.	1.2	%
Varian, Inc.	1.1	%
Black & Decker Corp.	1.1	%
iShares MSCI Chile Investable Market Index Fund	1.0	%
Financial Federal Corp.	0.9	%
PepsiAmericas, Inc.	0.9	%
Pepsi Bottling Group, Inc.	0.9	%
Top Ten Total	11.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments

8    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

MULTI-HEDGE STRATEGIES FUND

Cumulative Fund Performance

† Initial investment has been adjusted for the maximum sales charge of 4.75% .

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/09

	A-Class												C-Class									H-Class
	(09/19/05)												(09/19/05)									(09/19/05)
	ONE			ONE			SINCE			SINCE			ONE			ONE			SINCE			ONE			SINCE
	YEAR			YEAR*			INCEPTION			INCEPTION*			YEAR			YEAR**			INCEPTION			YEAR			INCEPTION
MULTI-HEDGE STRATEGIES FUND		-2.60	%		-7.22	%		-2.91	%		-4.01	%		-3.35	%		-4.32	%		-3.63	%		-2.65	%		-2.90	%
S&P 500 INDEX		26.47	%		26.47	%		-0.18	%		-0.18	%		26.47	%		26.47	%		-0.18	%		26.47	%		-0.18	%
HFRX GLOBAL HEDGE FUND INDEX		13.17	%		13.17	%		0.17	%		0.17	%		13.17	%		13.17	%		0.17	%		13.17	%		0.17	%

*	Fund returns are calculated using the maximum sales charge of 4.75% .
**	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

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. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.

THE RYDEX | SGI SERIES FUNDS 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 Index (“GSCI™”) (formerly known as the S&P GSCI Total Return Index).

Inception: May 25, 2005

For the one-year period ended December 31, 2009, Rydex Commodities Strategy Fund H-Class shares returned 7.09%, compared with 13.49% for its benchmark, the S&P GSCI Commodity Index. The GSCI rebounded from its worst year ever in 2008 to post a modest positive return in 2009. The GSCI relied on its heavy weighting in the energy space, along with a late rally in natural gas, to post this gain. The metals space, both precious and industrial, posted solid gains with copper up over 100% and gold up 25%. Signs of an economic turnaround in the latter months of the year contributed to favorable pricing for copper, lead and zinc, the commodities that contributed the most to Fund performance for the year, while other commodities, including gold and oil were beneficiaries of more favorable economic expectations. Natural gas, Kansas wheat and Chicago wheat were among the commodities that contributed to the least to overall Fund performance.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

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 | SGI SERIES FUNDS ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (concluded)

COMMODITIES STRATEGY FUND

Cumulative Fund Performance

† Initial investment has been adjusted for the maximum sales charge of 4.75% .

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/09

	A-Class												C-Class									H-Class
	(05/25/05)												(05/25/05)									(05/25/05)
	ONE			ONE			SINCE			SINCE			ONE			ONE			SINCE			ONE			SINCE
	YEAR			YEAR*			INCEPTION			INCEPTION*			YEAR			YEAR**			INCEPTION			YEAR			INCEPTION
COMMODITIES STRATEGY FUND		7.09	%		1.99	%		-7.55	%		-8.52	%		6.30	%		5.30	%		-8.25	%		7.09	%		-7.55	%
S&P 500 INDEX		26.47	%		26.47	%		0.69	%		0.69	%		26.47	%		26.47	%		0.69	%		26.47	%		0.69	%
S&P GSCI COMMODITY INDEX		13.49	%		13.49	%		-5.07	%		-5.07	%		13.49	%		13.49	%		-5.07	%		13.49	%		-5.07	%

*	Fund returns are calculated using the maximum sales charge of 4.75% .
**	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

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 Commodity 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. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    11

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2009

     LONG/SHORT COMMODITIES STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
STRUCTURED NOTES† 14.4%(b)
JPMorgan Chase & Co.,
C-IGAR Sigma Long-Short
Total Return Index
Linked Notes
due 12/01/10	$	8,000,000	$	7,468,393
JPMorgan Chase & Co.,
C-IGAR Sigma Long-Short
Total Return Index
Linked Notes
due 10/20/10		4,000,000		3,386,182
JPMorgan Chase & Co.,
C-IGAR Sigma Long-Short
Total Return Index
Linked Notes 0.55%
due 07/09/10		1,500,000		1,455,194
Total Structured Notes
(Cost $13,500,000)				12,309,769
REPURCHASE AGREEMENTS†† 78.2%(b)
HSBC Group
issued 12/31/09 at 0.00%
due 01/04/10		24,213,921		24,213,921
Morgan Stanley
issued 12/31/09 at 0.00%
due 01/04/10		19,837,912		19,837,912
Mizuho Financial Group, Inc.
issued 12/31/09 at 0.00%
due 01/04/10		16,815,135		16,815,135
Deutsche Bank
issued 12/31/09 at 0.00%
due 01/04/10		5,834,680		5,834,680
Total Repurchase Agreements
(Cost $66,701,648)				66,701,648
Total Investments 92.6%
(Cost $80,201,648)			$	79,011,417
Other Assets in Excess
of Liabilities — 7.4%			$	6,298,987
Net Assets – 100.0%			$	85,310,404
			Unrealized
		Contracts		Gain
COMMODITY FUTURES CONTRACTS PURCHASED(a)
February 2010 Gasoline RBOB
Futures Contracts
(Aggregate Market Value
of Contracts $7,010,842)		81	$	469,041

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
February 2010 LME Nickel
Futures Contracts
(Aggregate Market Value
of Contracts $6,657,480)		60	$	372,858
February 2010 Copper
Futures Contracts
(Aggregate Market Value
of Contracts $7,420,375)		89		355,854
February 2010 LME Lead
Futures Contracts
(Aggregate Market Value
of Contracts $6,470,825)		107		304,901
March 2010 Soybean
Futures Contracts
(Aggregate Market Value
of Contracts $6,605,550)		126		143,984
February 2010 LME Primary Aluminum
Futures Contracts
(Aggregate Market Value
of Contracts $6,201,300)		112		(59,035	)
March 2010 Silver
Futures Contracts
(Aggregate Market Value
of Contracts $6,320,625)		75		(361,083	)
(Total Aggregate Market Value
of Contracts $46,686,997)			$	1,226,520
COMMODITY FUTURES CONTRACT
SOLD SHORT(a)
March 2010 Wheat
Futures Contracts
(Aggregate Market Value
of Contracts $6,660,450)		246	$	(194,271	)

†	Structured Notes are leveraged, providing an exposure to the underlying benchmark greater than the face amount. The total exposure to the C-IGAR Sigma Long-Short Total Return Index is $39,309,769 as of December 31, 2009 — See Note 2.
††	Repurchase Agreements — See Note 7.
(a)	Value determined based on Level 1 inputs — See Note 8.
(b)	Value determined based on Level 2 inputs — See Note 8.

12    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

1

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 51.1%(a)
INFORMATION TECHNOLOGY 9.4%
Sun Microsystems, Inc.*§		176,010	$	1,649,214
Affiliated Computer
Services, Inc. — Class A*§		25,520		1,523,289
3Com Corp.*§		123,990		929,925
Altera Corp.§		25,001		565,773
Computer Sciences Corp.*§		8,880		510,866
Hewlett-Packard Co.§		6,490		334,300
Tech Data Corp.*§		7,100		331,286
Jabil Circuit, Inc.§		18,541		322,057
EMC Corp.*§		15,915		278,035
Sohu.com, Inc.*§		4,820		276,090
Switch and Data Facilities Co.*§		12,800		258,688
Fiserv, Inc.*§		5,180		251,126
Micron Technology, Inc.*§		22,781		240,567
CA, Inc.§		10,330		232,012
Diebold, Inc.§		8,020		228,169
Corning, Inc.§		11,150		215,306
Broadridge Financial
Solutions, Inc.§		9,460		213,418
Akamai Technologies, Inc.*§		8,220		208,213
Compuware Corp.*§		28,111		203,243
Brocade Communications
Systems, Inc.*§		26,121		199,303
Western Digital Corp.*§		4,490		198,233
Xilinx, Inc.§		7,850		196,721
QLogic Corp.*§		10,000		188,700
Apple Computer, Inc.*§		840		177,122
Dolby Laboratories, Inc. —
Class A*§		3,161		150,875
ANSYS, Inc.*§		2,980		129,511
eBay, Inc.*§		5,140		120,996
Ingram Micro, Inc. —
Class A*§		6,590		114,995
Cypress Semiconductor
Corp.*§		10,540		111,302
Broadcom Corp. —
Class A*§		3,100		97,495
Cree, Inc.*§		1,490		83,991
Genpact Ltd.*§		5,230		77,927
Fidelity National Information
Services, Inc.§		3,190		74,774
F5 Networks, Inc.*§		1,352		71,629
Ciena Corp.*§		5,820		63,089
Red Hat, Inc.*§		1,831		56,578
i2 Technologies, Inc.*		2,420		46,270
Marvell Technology Group
Ltd.*§		2,150		44,613
Teradata Corp.*§		1,130		35,516
Cognizant Technology Solutions
Corp. — Class A*§		470		21,291
Google, Inc. — Class A*§		30		18,599

			MARKET
	SHARES		VALUE
Ariba, Inc.*§		1,340	$	16,777
Silicon Laboratories, Inc.*§		300		14,502
Amphenol Corp.§		180		8,312
Avnet, Inc.*§		210		6,334
BMC Software, Inc.*		4		160
Global Payments, Inc.		2		108
VMware, Inc.*		1		42
Flir Systems, Inc.*		1		33
Total Information Technology				11,097,375
HEALTH CARE 6.7%
Varian, Inc.*		24,700		1,273,038
IMS Health, Inc.		44,250		931,905
Biogen Idec, Inc.*§		13,360		714,760
LifePoint Hospitals, Inc.*§		13,560		440,836
Baxter International, Inc.§		6,690		392,569
Watson Pharmaceuticals,
Inc.*§		8,840		350,152
ResMed, Inc.*§		5,400		282,258
Universal Health Services, Inc. —
Class B§		9,100		277,550
Community Health
Systems, Inc.*§		7,080		252,048
Express Scripts, Inc.*§		2,710		234,280
Gilead Sciences, Inc.*§		5,110		221,161
Mylan Laboratories, Inc.*§		11,500		211,945
Lincare Holdings, Inc.*§		5,400		200,448
Medco Health Solutions, Inc.*§		2,720		173,835
Abbott Laboratories§		2,990		161,430
Millipore Corp.*§		2,150		155,553
Allscripts Healthcare Solutions,
Inc.*§		6,360		128,663
Amgen, Inc.*§		2,190		123,888
Endo Pharmaceuticals
Holdings, Inc.*§		5,780		118,548
Omnicare, Inc.§		4,850		117,322
Inverness Medical Innovations*		424		112,716
Edwards Lifesciences Corp.*§		1,260		109,431
Health Management
Associates, Inc. — Class A*§		14,311		104,041
Thermo Fisher Scientific, Inc.*§		1,980		94,426
McKesson Corp.§		1,490		93,125
athenahealth, Inc.*§		1,900		85,956
Cerner Corp.*§		880		72,547
Eclipsys Corp.*§		3,420		63,338
Hospira, Inc.*§		1,020		52,020
Intuitive Surgical, Inc.*§		170		51,564
Cardinal Health, Inc.§		1,470		47,393
VCA Antech, Inc.*§		1,660		41,367
Johnson & Johnson§		630		40,578
Phase Forward, Inc.*§		2,640		40,524
Computer Programs &
Systems, Inc.§		830		38,222
Omnicell, Inc.*§		2,710		31,680
Boston Scientific Corp.*§		3,100		27,900

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    13

2

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
Bristol-Myers Squibb Co.§		870	$	21,968
OSI Pharmaceuticals, Inc.*§		610		18,928
MedAssets, Inc.*§		870		18,453
Perrigo Co.§		312		12,430
Teva Pharmaceutical
Industries Ltd. — SP ADR§		40		2,247
Becton, Dickinson and Co.		10		789
Onyx Pharmaceuticals, Inc.*		1		29
Myriad Pharmaceuticals, Inc.*		5		25
Total Health Care				7,943,886
CONSUMER DISCRETIONARY 6.5%
Marvel Entertainment, Inc.*§		27,210		1,471,517
Black & Decker Corp.§		19,180		1,243,439
Hasbro, Inc.§		11,550		370,293
DIRECTV*§		9,681		322,861
Burger King Holdings, Inc.§		16,260		306,013
Priceline.com, Inc.*§		1,020		222,870
Ross Stores, Inc.§		3,600		153,756
NutriSystem, Inc.§		4,680		145,876
Darden Restaurants, Inc.§		4,010		140,631
D.R. Horton, Inc.§		12,690		137,940
Interpublic Group of
Companies, Inc.*§		18,221		134,471
Comcast Corp. — Class A§		7,950		134,037
The Gap, Inc.§		6,210		130,099
John Wiley & Sons, Inc. —
Class A§		2,820		118,102
PetMed Express, Inc.§		6,520		114,948
Garmin Ltd.§		3,630		111,441
Amazon.com, Inc.*§		821		110,441
Lennar Corp. — Class A§		8,070		103,054
AutoNation, Inc.*§		5,270		100,920
Stamps.com, Inc.*§		11,190		100,710
Exide Technologies*§		13,770		97,905
Overstock.com, Inc.*§		6,830		92,615
LKQ Corp.*§		4,600		90,114
Time Warner Cable, Inc.§		2,100		86,919
Petsmart, Inc.§		3,200		85,408
Liberty Global, Inc. — Class A*§		3,750		82,162
Superior Industries
International, Inc.§		5,220		79,866
Guess?, Inc.§		1,810		76,563
Virgin Media, Inc.§		4,150		69,844
McDonald’s Corp.§		990		61,816
Lowe’s Companies, Inc.§		2,620		61,282
Shutterfly, Inc.*§		3,210		57,170
CBS Corp.§		3,980		55,919
Best Buy Company, Inc.§		1,260		49,720
Netflix, Inc.*§		870		47,972
Cedar Fair -LP		4,120		47,009
Big Lots, Inc.*§		1,551		44,948
Staples, Inc.§		1,800		44,262
TJX Companies, Inc.§		1,192		43,568
Brinker International, Inc.§		2,850		42,522
VF Corp.§		550		40,282

			MARKET
	SHARES		VALUE
Chipotle Mexican Grill, Inc. —
Class A*§		450	$	39,672
Blue Nile, Inc.*§		570		36,098
Bed Bath & Beyond, Inc.*§		910		35,153
Brink’s Home Security
Holdings, Inc.*§		1,060		34,598
GameStop Corp.*§		1,500		32,910
Limited Brands, Inc.§		1,700		32,708
Family Dollar Stores, Inc.§		1,160		32,283
Autoliv, Inc.§		740		32,086
Federal Mogul Corp. —
Class A*§		1,710		29,583
CTC Media, Inc.*§		1,950		29,055
WMS Industries, Inc.*§		720		28,800
AutoZone, Inc.*§		181		28,611
International Speedway
Corp. — Class A§		980		27,881
Royal Caribbean
Cruises Ltd.*§		1,100		27,808
Sherwin-Williams Co.§		430		26,509
Advance Auto Parts, Inc.§		640		25,907
Lamar Advertising Co.*§		830		25,805
Warner Music Group Corp.*§		4,210		23,829
O’Reilly Automotive, Inc.*§		580		22,110
Viacom, Inc. — Class B*§		510		15,162
Johnson Controls, Inc.§		540		14,710
HSN, Inc.*§		680		13,729
Dollar Tree, Inc.*§		280		13,524
TRW Automotive
Holdings Corp.*§		300		7,164
Raser Technologies, Inc.*§		3,390		4,204
Cooper Tire & Rubber Co.§		70		1,403
DeVry, Inc.		4		227
DreamWorks Animation
SKG, Inc. — Class A*		4		160
Clear Channel Outdoor
Holdings, Inc. — Class A*§		15		156
Panera Bread Co.*		2		134
ITT Educational Services, Inc.*		1		96
Apollo Group, Inc. — Class A*		1		61
H&R Block, Inc.		2		45
Coach, Inc.		1		37
Weight Watchers
International, Inc.		1		29
K12, Inc.*		1		20
Service Corporation International		2		16
Foot Locker, Inc.		1		11
Total Consumer Discretionary				7,673,579
FINANCIALS 5.6%
Financial Federal Corp.		39,940		1,098,350
Allied Capital Corp.*		133,880		483,307
Allied World Assurance
Company Holdings Ltd.		8,240		379,617
Annaly Capital Management, Inc.		19,581		339,730
First Horizon National Corp.*		23,356		312,964

14    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

3

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
Digital Realty Trust, Inc.		5,270	$	264,976
Hanover Insurance Group, Inc.		5,810		258,138
Discover Financial Services		14,660		215,649
Blackrock, Inc.		890		206,658
Federated Investors, Inc. —
Class B		7,460		205,150
IntercontinentalExchange, Inc.*		1,760		197,648
Brown & Brown, Inc.		10,740		192,998
BB&T Corp.		6,510		165,159
M&T Bank Corp.		2,190		146,489
Unum Group		6,930		135,274
American Financial Group, Inc.		5,010		124,999
MetLife, Inc.		3,500		123,725
Hudson City Bancorp, Inc.		8,393		115,236
CME Group, Inc.		290		97,425
Public Storage, Inc.		1,120		91,224
Student Loan Corp.		1,940		90,346
HCP, Inc.		2,890		88,261
Wesco Financial Corp.		250		85,750
Ameriprise Financial, Inc.		2,160		83,851
Hospitality Properties Trust		3,200		75,872
Health Care REIT, Inc.		1,710		75,787
TD Ameritrade Holding Corp.*		3,580		69,380
HCC Insurance Holdings, Inc.		2,210		61,814
Douglas Emmett, Inc.		4,010		57,142
MSCI, Inc. — Class A*		1,770		56,286
AmeriCredit Corp.*		2,720		51,789
Assurant, Inc.		1,740		51,295
Alexandria Real Estate
Equities, Inc.		790		50,789
Janus Capital Group, Inc.		3,140		42,233
Forest City Enterprises, Inc. —
Class A*		3,340		39,345
Associated Banc-Corp		3,160		34,792
NASDAQ OMX Group, Inc.*		1,560		30,919
Transatlantic Holdings, Inc.		590		30,745
Genworth Financial, Inc. —
Class A*		2,627		29,816
Franklin Resources, Inc.		280		29,498
W.R. Berkley Corp.		1,190		29,322
HRPT Properties Trust		3,910		25,298
Stancorp Financial
Group, Inc.		620		24,812
Investment Technology
Group, Inc.*		1,190		23,443
T. Rowe Price Group, Inc.		370		19,702
First Citizens BancShares, Inc. —
Class A		120		19,681
Invesco Ltd.		800		18,792
Popular, Inc.		7,500		16,950
U.S. Bancorp		710		15,982
Northern Trust Corp.		290		15,196
Prudential Financial, Inc.		200		9,952
Lazard Ltd. — Class A		250		9,493

			MARKET
	SHARES		VALUE
Morgan Stanley		310	$	9,176
Eaton Vance Corp.		240		7,298
Cullen/Frost Bankers, Inc.		140		7,000
BancorpSouth, Inc.		200		4,692
First Niagara Financial
Group, Inc.		250		3,478
Liberty Property Trust		30		960
Total Financials				6,551,653
UTILITIES 5.5%
PG&E Corp.§		18,030		805,040
Xcel Energy, Inc.§		37,400		794,002
NRG Energy, Inc.*§		26,610		628,262
CMS Energy Corp.§		33,580		525,863
Questar Corp.§		10,920		453,944
Northeast Utilities§		16,930		436,625
American Water Works
Company, Inc.§		17,961		402,506
DPL, Inc.§		13,800		380,880
Wisconsin Energy Corp.§		6,930		345,322
Energen Corp.§		7,220		337,896
OGE Energy Corp.§		7,050		260,145
DTE Energy Co.§		5,230		227,976
AES Corp.*§		14,120		187,937
National Fuel Gas Co.§		3,580		179,000
American Electric Power
Company, Inc.§		4,460		155,163
Entergy Corp.§		1,460		119,486
NiSource, Inc.§		6,210		95,510
MDU Resources Group, Inc.§		3,710		87,556
FPL Group, Inc.§		680		35,918
Dynegy, Inc.*§		13,593		24,603
Mirant Corp.*§		1,471		22,462
CenterPoint Energy, Inc.§		470		6,820
NSTAR		8		294
Total Utilities				6,513,210
INDUSTRIALS 5.0%
Burlington Northern
Santa Fe Corp.		6,960		686,395
MPS Group, Inc.*§		34,450		473,343
W.W. Grainger, Inc.§		3,811		369,019
Timken Co.§		14,410		341,661
Goodrich Corp.§		3,970		255,072
Thomas & Betts Corp.*§		6,840		244,804
Harsco Corp.§		7,010		225,932
United Parcel Service, Inc. —
Class B§		3,410		195,632
Union Pacific Corp.§		3,050		194,895
Norfolk Southern Corp.§		3,610		189,236
URS Corp.*§		3,990		177,635
Aecom Technology Corp.*§		6,400		176,000
Dover Corp.§		4,040		168,104
Precision Castparts Corp.§		1,400		154,490
Gardner Denver, Inc.§		3,540		150,627

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    15

4

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
MSC Industrial Direct Co.§		3,120	$	146,640
WESCO International, Inc.*§		5,280		142,613
Manpower, Inc.§		2,580		140,816
Dun & Bradstreet Corp.§		1,590		134,148
Eaton Corp.§		1,830		116,425
TransDigm Group, Inc.§		2,420		114,926
Alexander & Baldwin, Inc.§		3,070		105,086
CSX Corp.§		1,910		92,616
ITT Corp.§		1,640		81,574
Roper Industries, Inc.§		1,390		72,794
Hubbell, Inc. — Class B§		1,530		72,369
GATX Corp.§		2,440		70,150
Rockwell Automation, Inc.§		1,490		70,000
Joy Global, Inc.§		1,330		68,615
FTI Consulting, Inc.*§		1,440		67,910
Pentair, Inc.§		2,100		67,830
Cummins, Inc.§		980		44,943
Flowserve Corp.§		450		42,538
L-3 Communications
Holdings, Inc.§		470		40,867
Bucyrus International, Inc.§		580		32,695
Robert Half
International, Inc.§		1,220		32,611
Fluor Corp.§		510		22,970
Snap-On, Inc.§		510		21,553
Trinity Industries, Inc.§		1,010		17,614
Parker Hannifin Corp.§		250		13,470
General Cable Corp.*§		300		8,826
RR Donnelley & Sons Co.§		380		8,463
Kirby Corp.*§		60		2,090
Total Industrials				5,855,997
CONSUMER STAPLES 4.6%
PepsiAmericas, Inc.§		35,950		1,051,897
Pepsi Bottling Group, Inc.§		27,440		1,029,000
Wal-Mart Stores, Inc.§		9,550		510,447
Alberto-Culver Co.§		14,590		427,341
Church & Dwight
Company, Inc.§		6,070		366,931
J.M. Smucker Co.§		5,850		361,237
BJ’s Wholesale Club, Inc.*§		7,760		253,830
Del Monte Foods Co.§		21,671		245,749
Dean Foods Co.*§		12,650		228,206
Philip Morris International,
Inc.§		2,380		114,692
Bunge Ltd.§		1,790		114,256
Coca-Cola Co.§		1,790		102,030
Kimberly-Clark Corp.§		1,450		92,379
Herbalife Ltd.§		2,130		86,414
Procter & Gamble Co.§		1,390		84,276
Colgate-Palmolive Co.§		950		78,042
Rite Aid Corp.*§		41,611		62,833
Reynolds American, Inc.§		1,130		59,856
Clorox Co.§		850		51,850
Diedrich Coffee, Inc.*		1,330		46,351
Energizer Holdings, Inc.*§		550		33,704

			MARKET
	SHARES		VALUE
Dr Pepper Snapple
Group, Inc.§		1,180	$	33,394
Hansen Natural Corp.*§		592		22,733
Universal Corp.§		350		15,964
Vector Group Ltd.§		890		12,460
General Mills, Inc.		2		142
Total Consumer Staples				5,486,014
ENERGY 4.3%
BJ Services Co.		94,900		1,765,140
XTO Energy, Inc.		9,830		457,390
Overseas Shipholding
Group, Inc.		5,980		262,821
Hess Corp.		3,480		210,540
Murphy Oil Corp.		3,540		191,868
Southwestern Energy Co.*		3,610		174,002
Anadarko Petroleum Corp.		2,510		156,674
Rowan Companies, Inc.*		6,420		145,349
Whiting Petroleum Corp.*		1,840		131,505
Occidental Petroleum Corp.		1,530		124,465
Concho Resources, Inc.*		2,760		123,924
Noble Energy, Inc.		1,700		121,074
Pride International, Inc.*		3,540		112,961
Range Resources Corp.		2,212		110,268
EOG Resources, Inc.		1,030		100,219
CNX Gas Corp.*		3,030		89,445
National-Oilwell Varco, Inc.		1,910		84,212
Peabody Energy Corp.		1,420		64,198
Chevron Corp.		710		54,663
Schlumberger Ltd.		830		54,025
Oceaneering International, Inc.*		880		51,498
Diamond Offshore Drilling, Inc.		510		50,194
Williams Companies, Inc.		1,910		40,263
Tesoro Corp.		2,650		35,907
Halliburton Co.		1,140		34,303
Arch Coal, Inc.		1,490		33,152
Tidewater, Inc.		640		30,688
Frontline Ltd.		1,020		27,866
Continental Resources, Inc.*		640		27,450
Helmerich & Payne, Inc.		661		26,361
Dresser-Rand Group, Inc.*		821		25,952
Cabot Oil & Gas Corp.		590		25,718
Ensco International PLC —
SP ADR		600		23,964
FMC Technologies, Inc.*		320		18,509
Nabors Industries Ltd.*		740		16,199
Marathon Oil Corp.		500		15,610
Consol Energy, Inc.		130		6,474
SEACOR Holdings, Inc.*		80		6,100
Encore Acquisition Co.*		3		144
Atwood Oceanics, Inc.*		1		36
Total Energy				5,031,131
MATERIALS 3.2%
Nucor Corp.§		10,640		496,356
Ball Corp.§		5,960		308,132

16    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
Airgas, Inc.§		6,010	$	286,076
AptarGroup, Inc.§		5,510		196,927
Terra Industries, Inc.		5,520		177,689
Reliance Steel &
Aluminum Co.§		4,010		173,312
Cliffs Natural Resources, Inc.§		3,190		147,027
Ashland, Inc.§		3,270		129,557
FMC Corp.§		2,250		125,460
Schnitzer Steel Industries,
Inc. — Class A§		2,310		110,187
Bemis Co.§		3,700		109,705
Crown Holdings, Inc.*§		4,130		105,645
Eastman Chemical Co.§		1,660		99,998
Sonoco Products Co.§		3,370		98,572
Valspar Corp.§		3,540		96,076
Compass Minerals
International, Inc.§		1,420		95,410
Royal Gold, Inc.§		1,990		93,729
Walter Industries, Inc.§		1,180		88,866
Steel Dynamics, Inc.§		5,010		88,777
Pactiv Corp.*§		3,640		87,870
RPM International, Inc.§		3,470		70,545
United States Steel Corp.§		1,220		67,246
Allegheny Technologies, Inc.§		1,360		60,887
International Paper Co.§		1,770		47,401
Celanese Corp.§		1,360		43,656
Clearwater Paper Corp.*§		740		40,678
Intrepid Potash, Inc.*§		1,350		39,379
Schweitzer-Mauduit International, Inc.§		520		36,582
Glatfelter§		2,890		35,114
Deltic Timber Corp.§		760		35,097
Sealed Air Corp.§		1,600		34,976
PPG Industries, Inc.§		590		34,539
Albemarle Corp.§		900		32,733
MeadWestvaco Corp.§		1,080		30,920
Huntsman Corp.§		1,702		19,216
Wausau Paper Corp.§		1,570		18,212
Domtar Corp.*§		90		4,987
Monsanto Co.		1		82
Total Materials				3,767,621
TELECOMMUNICATION SERVICES 0.3%
Verizon Communications, Inc.§		9,900		327,987
Leap Wireless International,
Inc. — Class B*§		1,020		17,901
American Tower Corp. —
Class A*§		361		15,599
Total Telecommunication Services				361,487
Total Common Stocks
(Cost $53,512,232)				60,281,953

			MARKET
	SHARES		VALUE
EXCHANGE TRADED FUNDS 4.6%(a)
iShares MSCI Chile Investable
Market Index Fund§		20,600	$	1,128,674
First Trust Enhanced Equity
Income Fund§		48,450		566,865
iShares MSCI Brazil
Index Fund§		7,410		552,860
Nuveen Core Equity
Alpha Fund§		44,670		545,421
iShares MSCI Emerging
Markets Index Fund§		12,640		524,560
Liberty All Star Equity Fund§		119,780		518,648
iShares MSCI Malaysia Index
Fund§		36,181		384,242
Vanguard Emerging
Markets ETF§		9,110		373,510
iPath MSCI India Index
ETN*§		4,290		274,817
iShares MSCI BRIC
Index Fund§		4,290		196,697
iShares MSCI Turkey
Index Fund§		1,820		98,098
iShares MSCI Sweden
Index Fund§		4,060		95,410
iShares MSCI South Africa
Index Fund§		790		44,216
iShares MSCI South Korea
Index Fund§		910		43,352
iShares MSCI Singapore
Index Fund§		3,060		35,129
iShares MSCI Taiwan Index
Fund§		60		778
Total Exchange Traded Funds
(Cost $4,208,473)				5,383,277
CLOSED-END FUNDS 6.6%(a)
Calamos Strategic
Total Return Fund		58,230		509,512
Eaton Vance Tax-Advantaged
Dividend Income Fund		28,360		447,521
Cohen & Steers Quality
Income Realty Fund, Inc.§		72,090		437,586
ING Clarion Global
Real Estate Income Fund		61,370		390,927
Cohen & Steers Select
Utility Fund, Inc.§		23,197		370,224
Cohen & Steers REIT and
Utility Income Fund, Inc.§		33,850		359,487
Royce Value Trust, Inc.§		32,458		350,546
Blackrock Dividend
Achievers Trust§		31,770		299,273
DWS Dreman Value Income
Edge Fund§		23,795		287,206

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    17

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
SunAmerica Focused Alpha
Growth Fund§		19,590	$	268,579
H&Q Healthcare Investors*§		21,368		253,638
Petroleum & Resources
Corp.§		10,565		250,816
John Hancock Tax-Advantaged
Dividend Income Fund§		19,357		250,092
Macquarie Global Infrastructure
Total Return Fund, Inc.§		15,460		245,041
John Hancock Bank and Thrift
Opportunity Fund§		15,990		225,459
Adams Express Co.§		21,249		214,616
General American Investors
Company, Inc.§		7,903		185,393
Zweig Fund, Inc.§		53,500		177,085
BlackRock Strategic Dividend
Achievers Trust§		19,070		173,918
Clough Global Equity Fund§		11,797		167,281
Gabelli Global Deal Fund§		10,880		156,781
LMP Capital and Income
Fund, Inc.		13,990		144,797
H&Q Life Sciences Investors*		15,040		141,978
Old Mutual Claymore
Long-Short Fund§		16,190		137,777
Neuberger Berman Real Estate
Securities Income Fund, Inc.		43,620		133,477
SunAmerica Focused Alpha
Large-Cap Fund, Inc.§		9,750		133,283
Royce Micro-Cap Trust, Inc.§		15,320		113,215
Madison/Claymore Covered Call & Equity Strategy Fund§		12,670		112,763
Nuveen Diversified Dividend and Income Fund§		11,320		110,144
Nuveen Tax-Advantaged Total
Return Strategy Fund		9,340		99,845
Cohen & Steers Dividend
Majors Fund, Inc.§		8,730		91,229
Source Capital, Inc.§		2,090		89,954
Nuveen Tax-Advantaged Dividend Growth Fund		7,740		89,474
Lazard Global Total Return and
Income Fund, Inc.§		5,860		87,255
Franklin Universal Trust§		12,050		69,890
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund§		5,130		63,561
Royce Focus Trust, Inc.		7,622		48,247
Nuveen Equity Premium
Advantage Fund§		3,300		43,131
Advent/Claymore Enhanced
Growth & Income Fund, Inc.		2,830		31,696
Blackrock Health Sciences Trust§		1,150		30,165
Total Closed-End Fund
(Cost $7,009,267)				7,792,862

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 35.6%(b)
HSBC Group
issued 12/31/09
at 0.00% due 01/04/10	$	11,689,968	$	11,689,968
Credit Suisse Group
issued 12/31/09
at (0.02)% due 01/04/10		9,746,331		9,746,331
Morgan Stanley
issued 12/31/09 at
0.00% due 01/04/10		9,577,323		9,577,323
Mizuho Financial Group, Inc. issued 12/31/09 at 0.00% due 01/04/10		8,117,990		8,117,990
Deutsche Bank
issued 12/31/09 at
0.00% due 01/04/10		2,816,860		2,816,860
Total Repurchase Agreements
(Cost $41,948,472)				41,948,472
Total Long Securities 97.9%
(Cost $106,678,444)				115,406,564
		SHARES
COMMON STOCKS SOLD SHORT (40.2)%(a)
TELECOMMUNICATION SERVICES (0.3)%
United States Cellular Corp.*		680		(28,839	)
Telephone & Data
Systems, Inc.		1,720		(58,342	)
Crown Castle International
Corp.*		1,730		(67,539	)
NII Holdings, Inc.*		2,900		(97,382	)
Sprint Nextel Corp.*		27,760		(101,602	)
Total Telecommunication Services				(353,704	)
MATERIALS (1.8)%
Alcoa, Inc.		700		(11,284	)
Lubrizol Corp.		300		(21,885	)
Commercial Metals Co.		1,810		(28,327	)
AK Steel Holding Corp.		1,769		(37,768	)
Newmont Mining Corp.		800		(37,848	)
Ecolab, Inc.		890		(39,685	)
Freeport-McMoRan Copper
& Gold, Inc.*		500		(40,145	)
Eagle Materials, Inc.		1,900		(49,495	)
Temple-Inland, Inc.		2,380		(50,242	)
CF Industries Holdings, Inc.		580		(52,652	)
Cytec Industries, Inc.		1,590		(57,908	)
Cabot Corp.		3,940		(103,346	)
Scotts Miracle-Gro Co. —
Class A		3,330		(130,902	)
Nalco Holding Co.		6,890		(175,764	)
Vulcan Materials Co.		3,999		(210,627	)
Weyerhaeuser Co.		12,356		(533,038	)
Valhi, Inc.		39,084		(546,004	)
Total Materials				(2,126,920	)

18    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
ENERGY (2.5)%
Chesapeake Energy Corp.		260	$	(6,729	)
Smith International, Inc.		300		(8,151	)
Frontier Oil Corp.		1,460		(17,578	)
Hercules Offshore, Inc.*		4,240		(20,267	)
Helix Energy Solutions
Group, Inc.*		1,730		(20,327	)
SandRidge Energy, Inc.*		2,950		(27,819	)
Mariner Energy, Inc.*		2,550		(29,606	)
Holly Corp.		1,250		(32,038	)
Massey Energy Co.		810		(34,028	)
Quicksilver Resources, Inc.*		2,300		(34,523	)
Teekay Corp.		1,540		(35,743	)
PetroHawk Energy Corp.*		1,500		(35,985	)
El Paso Corp.		4,560		(44,825	)
Exterran Holdings, Inc.*		2,250		(48,263	)
Plains Exploration &
Production Co.*		1,940		(53,660	)
ConocoPhillips		1,570		(80,180	)
Forest Oil Corp.*		4,000		(89,000	)
Valero Energy Corp.		5,430		(90,953	)
Newfield Exploration Co.*		3,540		(170,734	)
Exxon Mobil Corp.		6,960		(474,602	)
Baker Hughes, Inc.		38,003		(1,538,361	)
Total Energy				(2,893,372	)
HEALTH CARE (3.4)%
Covance, Inc.*		40		(2,183	)
Myriad Genetics, Inc.*		259		(6,760	)
CR Bard, Inc.		90		(7,011	)
Brookdale Senior Living, Inc.*		780		(14,188	)
Stryker Corp.		430		(21,659	)
Life Technologies Corp.*		450		(23,503	)
Health Net, Inc.*		1,850		(43,087	)
Allergan, Inc.		880		(55,449	)
Eli Lilly & Co.		1,590		(56,779	)
Patterson Companies, Inc.*		2,320		(64,914	)
Amylin Pharmaceuticals, Inc.*		4,730		(67,119	)
Hill-Rom Holdings, Inc.		2,860		(68,611	)
Vertex Pharmaceuticals, Inc.*		2,189		(93,799	)
Tenet Healthcare Corp.*		18,970		(102,248	)
Hologic, Inc.*		8,110		(117,595	)
Charles River Laboratories
International, Inc.*		4,290		(144,530	)
King Pharmaceuticals, Inc.*		14,120		(173,252	)
Genzyme Corp.*		5,230		(256,322	)
BioMarin Pharmaceuticals, Inc.*		13,759		(258,807	)
Teleflex, Inc.		6,260		(337,351	)
United Therapeutics Corp.*		6,549		(344,805	)
Alexion Pharmaceuticals, Inc.*		8,840		(431,569	)
Cephalon, Inc.*		10,060		(627,845	)
Celgene Corp.*		13,177		(733,695	)
Total Health Care				(4,053,081	)
CONSUMER DISCRETIONARY (3.7)%
Borgwarner, Inc.		40		(1,329	)

			MARKET
	SHARES		VALUE
Liberty Media Corp. — Interactive*		170	$	(1,843	)
Fortune Brands, Inc.		210		(9,072	)
Scripps Networks
Interactive, Inc. — Class A		340		(14,110	)
Central European Media
Enterprises Ltd. — Class A*		890		(21,013	)
Abercrombie & Fitch Co. —
Class A		650		(22,652	)
MGM Mirage*		2,549		(23,247	)
Eastman Kodak Co.*		6,570		(27,725	)
Career Education Corp.*		1,230		(28,671	)
Scientific Games Corp. —
Class A*		2,300		(33,465	)
Penn National Gaming, Inc.*		1,290		(35,062	)
Expedia, Inc.*		1,390		(35,737	)
Signet Jewelers Ltd.*		1,350		(36,072	)
Sirius XM Radio, Inc.*		61,837		(37,102	)
Hanesbrands*		1,569		(37,829	)
American Eagle Outfitters, Inc.		2,510		(42,620	)
M.D.C. Holdings, Inc.		1,440		(44,698	)
Thor Industries, Inc.		1,490		(46,786	)
Whirlpool Corp.		680		(54,849	)
KB Home		4,050		(55,404	)
Mattel, Inc.		3,220		(64,336	)
Goodyear Tire & Rubber Co.*		4,590		(64,719	)
Liberty Media Corp. — Capital*		2,750		(65,670	)
Home Depot, Inc.		2,320		(67,118	)
Harley-Davidson, Inc.		2,850		(71,820	)
Gentex Corp.		4,060		(72,471	)
NVR, Inc.*		110		(78,178	)
Hillenbrand, Inc.		4,199		(79,109	)
New York Times Co. — Class A*		6,600		(81,576	)
Marriott International, Inc. —
Class A		3,000		(81,750	)
Wynn Resorts Ltd.		1,489		(86,704	)
Macy’s, Inc.		5,390		(90,336	)
Dick’s Sporting Goods, Inc.*		4,040		(100,475	)
Cablevision Systems Corp. —
Class A		3,980		(102,764	)
Harman International
Industries, Inc.		2,930		(103,370	)
Tiffany & Co.		2,530		(108,790	)
Mohawk Industries, Inc.*		2,309		(109,908	)
Newell Rubbermaid, Inc.		8,040		(120,680	)
Gannett Company, Inc.		8,350		(123,997	)
Las Vegas Sands Corp.*		8,356		(124,839	)
International Game
Technology		7,210		(135,332	)
News Corp. — Class A		9,909		(135,654	)
Choice Hotels
International, Inc.		4,288		(135,758	)
Starbucks Corp.*		6,090		(140,435	)
Strayer Education, Inc.		1,300		(276,237	)
Regal Entertainment Group —
Class A		28,290		(408,508	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    19

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
Walt Disney Co.		21,687	$	(699,406	)
Total Consumer Discretionary				(4,339,226	)
UTILITIES (3.9)%
Pepco Holdings, Inc.		1,650		(27,803	)
RRI Energy, Inc.*		6,150		(35,178	)
Calpine Corp.*		4,209		(46,299	)
Edison International		1,700		(59,126	)
Consolidated Edison, Inc.		2,040		(92,677	)
Great Plains Energy, Inc.		7,030		(136,312	)
Southern Co.		4,460		(148,607	)
Oneok, Inc.		3,520		(156,886	)
Allegheny Energy, Inc.		8,790		(206,389	)
Constellation Energy Group, Inc.		6,210		(218,406	)
EQT Corp.		5,200		(228,384	)
Aqua America, Inc.		13,246		(231,937	)
Public Service Enterprise
Group, Inc.		7,990		(265,668	)
TECO Energy, Inc.		21,650		(351,163	)
Duke Energy Corp.		21,730		(373,973	)
Integrys Energy Group, Inc.		9,819		(412,300	)
PPL Corp.		12,840		(414,860	)
Alliant Energy Corp.		17,970		(543,772	)
Dominion Resources, Inc.		17,590		(684,603	)
Total Utilities				(4,634,343	)
CONSUMER STAPLES (4.0)%
Kraft Foods, Inc.		180		(4,892	)
Central European Distribution Corp.*		460		(13,069	)
NBTY, Inc.*		450		(19,593	)
Green Mountain Coffee Roasters, Inc.*		360		(29,329	)
Whole Foods Market, Inc.*		2,140		(58,743	)
SUPERVALU, Inc.		4,760		(60,500	)
Campbell Soup Co.		2,790		(94,302	)
Tyson Foods, Inc. — Class A		9,100		(111,657	)
Brown-Forman Corp.		2,650		(141,960	)
Molson Coors Brewing Co. — Class B		3,210		(144,964	)
Kellogg Co.		2,930		(155,876	)
Coca-Cola Enterprises		7,750		(164,300	)
Hormel Foods Corp.		5,090		(195,711	)
Estee Lauder Companies, Inc. — Class A		4,120		(199,243	)
Altria Group, Inc.		13,490		(264,809	)
Lorillard, Inc.		3,590		(288,026	)
Constellation Brands, Inc. —
Class A*		20,210		(321,945	)
Hershey Co.		10,860		(388,679	)
Flowers Foods, Inc.		17,686		(420,219	)
Sara Lee Corp.		43,380		(528,368	)
PepsiCo, Inc.		17,857		(1,085,706	)
Total Consumer Staples				(4,691,891	)

			MARKET
	SHARES		VALUE
INDUSTRIALS (5.0)%
Terex Corp*		200	$	(3,962	)
Brink’s Co.		330		(8,032	)
Danaher Corp.		180		(13,536	)
SunPower Corp.*		839		(19,868	)
Corrections Corporation
of America*		880		(21,604	)
General Electric Co.		1,450		(21,938	)
Armstrong World
Industries, Inc.*		570		(22,190	)
Monster Worldwide, Inc.*		1,960		(34,104	)
Manitowoc Company, Inc.		3,440		(34,297	)
Hertz Global Holdings, Inc.*		2,960		(35,283	)
Iron Mountain, Inc.*		1,569		(35,710	)
Avis Budget Group, Inc.*		2,956		(38,783	)
Owens Corning, Inc.*		1,620		(41,537	)
Textron, Inc.		2,380		(44,768	)
UTi Worldwide, Inc.		3,640		(52,125	)
Crane Co.		1,770		(54,197	)
Oshkosh Corp.		1,630		(60,359	)
PACCAR, Inc.		1,720		(62,384	)
McDermott International, Inc.*		2,710		(65,067	)
Masco Corp.		4,970		(68,636	)
Kennametal, Inc.		2,850		(73,872	)
Con-way, Inc.		2,250		(78,548	)
3M Co.		980		(81,017	)
Graco, Inc.		3,190		(91,138	)
Deere & Co.		1,760		(95,198	)
USG Corp.*		10,577		(148,607	)
FedEx Corp.		1,830		(152,714	)
Landstar System, Inc.		7,210		(279,532	)
AMR Corp.*		44,389		(343,127	)
Continental Airlines, Inc.*		25,362		(454,487	)
Southwest Airlines Co.		40,790		(466,230	)
Boeing Co.		9,478		(513,044	)
Delta Air Lines, Inc.*		47,264		(537,864	)
Stericycle, Inc.*		10,690		(589,767	)
Stanley Works		24,465		(1,260,192	)
Total Industrials				(5,903,717	)
INFORMATION TECHNOLOGY (7.5)%
Western Union Co.		40		(754	)
Molex, Inc.		40		(862	)
CommScope, Inc.*		60		(1,592	)
Fairchild Semiconductor
International, Inc.*		530		(5,295	)
Seagate Technology		630		(11,460	)
JDA Software Group, Inc.*		620		(15,791	)
McAfee, Inc.*		470		(19,068	)
Convergys Corp.*		3,130		(33,648	)
Vishay Intertechnology, Inc.*		4,030		(33,651	)
MEMC Electronic
Materials, Inc.*		3,010		(40,996	)
Lexmark International, Inc. —
Class A*		1,720		(44,686	)

20    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
NetApp, Inc.*		1,370	$	(47,114	)
EchoStar Corp. — Class A*		2,420		(48,739	)
Arrow Electronics, Inc.*		1,720		(50,929	)
ON Semiconductor Corp.*		5,940		(52,331	)
Trimble Navigation Ltd.*		2,130		(53,676	)
Yahoo!, Inc.*		3,800		(63,764	)
Rambus, Inc.*		3,010		(73,444	)
Advanced Micro Devices, Inc.*		8,020		(77,634	)
SanDisk Corp.*		2,720		(78,853	)
Motorola, Inc.*		12,200		(94,672	)
Novellus Systems, Inc.*		4,080		(95,227	)
Activision Blizzard, Inc.*		9,100		(101,101	)
Unisys Corp.*		2,670		(102,955	)
AVX Corp.		8,460		(107,188	)
Intersil Corp. — CL A		7,500		(115,050	)
Itron, Inc.*		1,760		(118,923	)
Hewitt Associates, Inc. —
Class A*		3,520		(148,755	)
Visa, Inc.		1,790		(156,553	)
National Semiconductor Corp.		10,250		(157,440	)
Zebra Technologies Corp. —
Class A*		5,560		(157,682	)
Autodesk, Inc.*		6,630		(168,468	)
Applied Materials, Inc.		12,510		(174,389	)
NVIDIA, Corp.*		10,680		(199,502	)
Integrated Device
Technology, Inc.*		31,418		(203,274	)
Equinix, Inc.*		1,990		(211,239	)
Kla-Tencor Corp.		6,000		(216,960	)
Tellabs, Inc.*		40,120		(227,882	)
Cadence Design Systems, Inc.*		43,310		(259,427	)
VeriSign, Inc.*		11,170		(270,761	)
Lam Research Corp.*		7,230		(283,488	)
Symantec Corp.*		15,940		(285,167	)
LSI Logic Corp.*		53,340		(320,573	)
International Rectifier Corp.*		17,280		(382,234	)
IAC/InterActiveCorp*		20,580		(421,478	)
Atmel Corp.*		91,841		(423,387	)
Novell, Inc.*		102,022		(423,391	)
Electronic Arts, Inc.*		26,582		(471,831	)
MasterCard, Inc.		2,710		(693,706	)
Xerox Corp.		125,959		(1,065,613	)
Total Information Technology				(8,812,603	)
FINANCIALS (8.1)%
Apartment Investment &
Management Co. — Class A		30		(478	)
First American Corp.		60		(1,987	)
SunTrust Banks, Inc.		170		(3,449	)
State Street Corp.		80		(3,483	)
American International
Group, Inc.*		167		(5,007	)
Hartford Financial Services
Group, Inc.		290		(6,745	)
Capital One Financial Corp.		230		(8,818	)

			MARKET
	SHARES		VALUE
Bank of Hawaii Corp.		260	$	(12,236	)
RenaissanceRe Holdings Ltd.		300		(15,945	)
Raymond James Financial, Inc.		810		(19,254	)
Lincoln National Corp.		800		(19,904	)
Zions Bancorporation		1,640		(21,041	)
Comerica, Inc.		720		(21,290	)
City National Corp.		480		(21,888	)
ProLogis		1,740		(23,821	)
Aflac, Inc.		530		(24,512	)
Alleghany Corp.*		90		(24,840	)
Principal Financial Group, Inc.		1,080		(25,963	)
Bank of New York Mellon Corp.		950		(26,572	)
Kimco Realty Corp.		2,010		(27,195	)
Fidelity National Financial, Inc. — Class A		2,210		(29,747	)
Regency Centers Corp.		850		(29,801	)
BRE Properties, Inc.		960		(31,757	)
OneBeacon Insurance
Group Ltd. — Class A		2,510		(34,588	)
Vornado Realty Trust		511		(35,739	)
Conseco, Inc.*		7,420		(37,100	)
Citigroup, Inc.		11,537		(38,187	)
Loews Corp.		1,110		(40,349	)
Valley National Bancorp		3,000		(42,390	)
Charles Schwab Corp.		2,270		(42,721	)
Markel Corp.*		130		(44,200	)
TCF Financial Corp.		3,260		(44,401	)
Protective Life Corp.		2,690		(44,520	)
GLG Partners, Inc.*		14,120		(45,466	)
Synovus Financial Corp.		22,920		(46,986	)
SEI Investments Co.		3,060		(53,611	)
Allstate Corp.		1,830		(54,973	)
BOK Financial Corp.		1,190		(56,549	)
American National Insurance Co.		480		(57,331	)
Huntington Bancshares, Inc.		15,756		(57,509	)
Unitrin, Inc.		3,050		(67,253	)
Wilmington Trust Corp.		5,510		(67,993	)
CapitalSource, Inc.		18,051		(71,662	)
Legg Mason, Inc.		2,380		(71,781	)
Regions Financial Corp.		13,830		(73,161	)
Equity Residential		2,210		(74,654	)
Affiliated Managers Group, Inc.*		1,130		(76,106	)
Bank of America Corp.		5,120		(77,107	)
Old Republic International Corp.		7,920		(79,517	)
Fifth Third Bancorp		8,270		(80,633	)
CB Richard Ellis Group, Inc. —
Class A*		5,980		(81,149	)
XL Capital, Inc.		4,470		(81,935	)
JPMorgan Chase & Co.		1,969		(82,048	)
Fulton Financial Corp.		9,900		(86,328	)
NYSE Euronext		3,430		(86,779	)
Wells Fargo & Co.		3,339		(90,120	)
Camden Property Trust		2,150		(91,096	)
Moody’s Corp.		3,440		(92,192	)

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    21

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			MARKET
	SHARES		VALUE
PNC Financial Services
Group, Inc.		1,760	$	(92,910	)
Jones Lang LaSalle, Inc.		1,550		(93,620	)
Marshall & Ilsley Corp.		17,310		(94,340	)
Whitney Holding Corp.		10,720		(97,659	)
Plum Creek Timber
Company, Inc.		2,590		(97,798	)
Jefferies Group, Inc.*		4,260		(101,090	)
Taubman Centers, Inc.		3,020		(108,448	)
Goldman Sachs Group, Inc.		660		(111,434	)
Everest Re Group		1,400		(119,952	)
New York Community
Bancorp, Inc.		8,530		(123,770	)
AvalonBay Communities, Inc.		1,570		(128,913	)
Boston Properties, Inc.		2,170		(145,542	)
Greenhill & Company, Inc.		1,910		(153,258	)
White Mountains Insurance
Group Ltd.		470		(156,350	)
KeyCorp		28,578		(158,608	)
Progressive Corp.*		8,840		(159,032	)
Arthur J Gallagher & Co.		10,080		(226,901	)
MBIA, Inc.*		64,601		(257,112	)
Leucadia National Corp.*		10,928		(259,977	)
The St. Joe Co.*		9,328		(269,486	)
Erie Indemnity Co. — Class A		9,440		(368,349	)
Mercury General Corp.		11,028		(432,959	)
Ares Capital Corp.		43,523		(541,861	)
Capitol Federal Financial		18,590		(584,841	)
TFS Financial Corp.		52,690		(639,657	)
People’s United Financial, Inc.		40,330		(673,511	)
Marsh & McLennan
Companies, Inc.		32,406		(715,524	)
Total Financials				(9,526,769	)
Total Common Stocks Sold Short
(Proceeds $41,615,364)				(47,335,626	)
EXCHANGE TRADED FUNDS
SOLD SHORT (8.5)%(a)
iShares MSCI Mexico Investable
Market Index Fund		380		(18,570	)
iShares MSCI Italy Index Fund		1,120		(21,851	)
iShares MSCI Canada Index Fund		1,350		(35,545	)
iShares MSCI Australia Index
Fund		1,590		(36,316	)
iShares MSCI Japan Index Fund		4,730		(46,070	)
Powershares QQQ		2,090		(95,973	)
iShares MSCI Belgium Investable
Market Index Fund		21,760		(277,658	)
iShares MSCI Netherlands
Investable Market Index Fund		15,790		(323,070	)
iShares MSCI EAFE Index Fund		20,900		(1,155,770	)
iShares Russell 2000 Index Fund		24,410		(1,519,767	)
SPDR Trust Series 1		58,720		(6,543,757	)
Total Exchange Traded Funds Sold Short
(Proceeds $9,125,044)				(10,074,347	)

			MARKET
	CONTRACTS		VALUE
OPTIONS WRITTEN (0.9)%(a)
IMS Health, Inc. Expiring
May 2010 with strike price
of 22.5		30	$	(225	)
Starent Networks Corp. Expiring June 2010 with strike price of 35		260		(2,600	)
January 2010 S&P 400 MidCap
Index Futures Contracts
Expiring January 2010
with strike price of 690		107		(427,465	)
January 2010 Russell 2000
Index Futures Contracts
Expiring June 2010
with strike price of 580		120		(639,000	)
Total Options Written
(Premiums Received $831,554)				(1,069,290	)
Other Assets in Excess
of Liabilities — 2.1%			$	2,448,382
Net Assets – 100.0%			$	117,854,946
			Unrealized
			GAIN
COMMODITY FUTURES CONTRACTS PURCHASED(a)
January 2010 LME Zinc
Futures Contracts
(Aggregate Market Value
of Contracts $1,330,744)		21	$	173,046
May 2010 Sugar #11
Futures Contracts
(Aggregate Market Value
of Contracts $1,341,144)		45		125,786
March 2010 Cotton
Futures Contracts
(Aggregate Market Value
of Contracts $1,474,200)		39		62,344
March 2010 Copper
Futures Contracts
(Aggregate Market Value
of Contracts $920,425)		11		54,401
March 2010 Soybean Oil
Futures Contracts
(Aggregate Market Value
of Contracts $636,168)		26		33,046
February 2010 LME Lead
Futures Contracts
(Aggregate Market Value
of Contracts $483,800)		8		24,772
March 2010 Soybean
Futures Contracts
(Aggregate Market Value
of Contracts $629,100)		12		23,802

22    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded)

December 31, 2009

     MULTI-HEDGE STRATEGIES FUND

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
February 2010 Lean Hogs
Futures Contracts
(Aggregate Market Value
of Contracts $393,600)		15	$	5,096
March 2010 Cocoa
Futures Contracts
(Aggregate Market Value
of Contracts $625,480)		19		209
February 2010 LME Primary Aluminum
Futures Contracts
(Aggregate Market Value
of Contracts $1,661,063)		30		(7,218	)
March 2010 Silver
Futures Contracts
(Aggregate Market Value
of Contracts $505,650)		6		(57,708	)
March 2010 Coffee
Futures Contracts
(Aggregate Market Value
of Contracts $968,288)		19		(65,298	)
February 2010 Gold 100 Oz
Futures Contracts
(Aggregate Market Value
of Contracts $1,424,280)		13		(70,908	)
(Total Aggregate Market Value
of Contracts $12,393,941)			$	301,370
FUTURES CONTRACTS PURCHASED(a)
March 2010 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $7,458,000)		120	$	324,237
March 2010 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $7,725,400)		107		303,741
March 2010 U.S. Treasury
10 Year Note Futures Contracts
(Aggregate Market Value
of Contracts $15,915,281)		138		(406,541	)
(Total Aggregate Market Value
of Contracts $31,098,681)			$	221,437

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
CURRENCY FUTURES CONTRACTS
SOLD SHORT(a)
March 2010 U.S.Dollar Index
Futures Contracts
(Aggregate Market Value
of Contracts $15,743,325)		201	$	(447,125	)
(Total Aggregate Market Value
of Contracts $15,743,325)			$	(447,125	)
FUTURES CONTRACTS
SOLD SHORT(a)
March 2010 U.S. Treasury
2 Year Note Futures Contracts
(Aggregate Market Value
of Contracts $51,691,219)		239	$	242,225
March 2010 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $111,050)		2		(1,963	)
(Total Aggregate Market Value
of Contracts $51,802,269)			$	240,262
COMMODITY FUTURES CONTRACT
SOLD SHORT(a)
March 2010 Corn
Futures Contracts
(Aggregate Market Value
of Contracts $290,150)		14	$	(7,056	)
February 2010 Live Cattle
Futures Contracts
(Aggregate Market Value
of Contracts $3,476,420)		101		(18,170	)
May 2010 Wheat
Futures Contracts
(Aggregate Market Value
of Contracts $582,750)		21		(21,788	)
March 2010 Natural Gas
Futures Contracts
(Aggregate Market Value
of Contracts $498,780)		9		(43,577	)
(Total Aggregate Market Value
of Contracts $4,848,100)			$	(90,591	)

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 7.
(a)	Value determined based on Level 1 inputs — See Note 8.
(b)	Value determined based on Level 2 inputs — See Note 8.
§	All or a portion of this security is pledged as short security collateral at December 31, 2009.
	ADR — American Depository Receipt.
	REIT — Real Estate Investment Trust.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    23

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2009

     COMMODITIES STRATEGY FUND

			MARKET
	SHARES		VALUE
EXCHANGE TRADED FUNDS 2.1%(a)
iShares S&P GSCI
Commodity Indexed Trust*		30,842	$	981,392
Total Exchange Traded Funds
(Cost $947,570)				981,392
		FACE
		AMOUNT
STRUCTURED NOTES†† 42.4%(b)
Goldman Sachs Group,
S&P GSCI Total Return
Linked Notes at 0.00%
due 04/30/10	$	5,000,000		8,561,850
Swedish Export Credit Corp.,
S&P GSCI Total Return
Linked Notes at 0.00%
due 03/11/10		2,625,000		6,102,994
Commonwealth Bank of Australia,
S&P GSCI Total Return
Linked Notes at 0.08%
due 07/23/10		2,000,000		3,066,320
Goldman Sachs Group,
S&P GSCI Total Return
Linked Notes at 0.00%
due 05/27/10		1,500,000		2,106,045
Total Structured Notes
(Cost $11,125,000)				19,837,210

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 45.5%(b)
Credit Suisse Group issued 12/31/09 at (0.02)% due 01/01/10	$	19,933,130	$	19,933,130
HSBC Group
issued 12/31/09 at 0.00%
due 01/04/10		491,439		491,439
Morgan Stanley
issued 12/31/09 at 0.00%
due 01/04/10		402,625		402,625
Mizuho Financial Group, Inc.
issued 12/31/09 at 0.00%
due 01/04/10		341,276		341,276
Deutsche Bank
issued 12/31/09 at 0.00%
due 01/04/10		118,419		118,419
Total Repurchase Agreements
(Cost $21,286,889)				21,286,889
Total Investments 90.0%
(Cost $33,359,459)			$	42,105,491
Other Assets in Excess
of Liabilities — 10.0%			$	4,652,903
Net Assets – 100.0%			$	46,758,394
			Unrealized
		Contracts		Gain
COMMODITY FUTURES CONTRACTS
PURCHASED(a)
January 2010 Goldman Sachs
IDX Futures Contracts
(Aggregate Market Value
of Contracts $3,937,500)		30	$	92,331

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 7.
††	Structured Notes are leveraged, providing an exposure to the underlying benchmark greater than the face amount. The total exposure to the S&P GSCI Total Return Index was $42,087,569 as of December 31, 2009 — See Note 2.
(a)	Value determined based on Level 1 inputs — See Note 8.
(b)	Value determined based on Level 2 inputs — See Note 8.

24    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

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THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    25

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2009

	Long/Short
	Commodities			Multi-Hedge			Commodities
	Strategy Fund			Strategies Fund			Strategy Fund
Assets
Investment Securities	$	12,309,769		$	73,458,092		$	20,818,602
Repurchase Agreements		66,701,648			41,948,472			21,286,889
Total Investments		79,011,417			115,406,564			42,105,491
Segregated Cash with Broker		6,415,526			61,828,270			157,500
Cash		—			515			—
Receivable for Securities Sold		—			—			4,665,450
Receivable for Fund Shares Sold		128,265			114,710			91,035
Investment Income Receivable		3,745			104,134			360
Total Assets		85,558,953			177,454,193			47,019,836
Liabilities
Short Sales at Market Value*		—			57,409,973			—
Written Options at Market Value		—			1,069,290			—
Variation Margin on Futures Contracts		35,384			295,588			7,501
Payable for Securities Purchased		—			406,586			—
Payable for Fund Shares Redeemed		44,129			133,763			150,929
Investment Advisory Fees Payable		60,324			113,088			37,077
Transfer Agent and Administrative Fees Payable		18,981			—			12,318
Distribution and Service Fees Payable		21,451			48,485			16,618
Portfolio Accounting Fees Payable		7,592			—			4,927
Custody Fees Payable		2,506			—			1,642
Short Sales Dividends Payable		—			109,622			—
Other Accrued Fees		58,182			12,852			30,430
Total Liabilities		248,549			59,599,247			261,442
Net Assets	$	85,310,404		$	117,854,946		$	46,758,394
Net Assets Consist Of
Paid-In Capital	$	85,464,641		$	177,285,086		$	62,489,017
Undistributed Net Investment (Loss)		3,745			43,981			6,857
Accumulated Net Realized Loss on Investments		—			(61,520,293	)		(24,575,843	)
Net Unrealized Appreciation (Depreciation) on Investments		(157,982	)		2,046,172			8,838,363
Net Assets	$	85,310,404		$	117,854,946		$	46,758,394
A-Class	$	10,653,874		$	25,010,012		$	8,553,292
C-Class		3,642,443			23,494,039			6,185,986
H-Class		71,014,087			69,350,895			32,019,116
Shares Outstanding
A-Class		442,636			1,216,055			521,922
C-Class		151,958			1,180,723			391,620
H-Class		2,951,334			3,369,740			1,953,400
Net Asset Values
A-Class	$	24.07		$	20.57		$	16.39
A-Class Maximum Offering Price*		25.27			21.60			17.21
C-Class		23.97			19.90			15.80
H-Class		24.06			20.58			16.39
Cost of Investments	$	80,201,648		$	106,678,444		$	33,359,459
Proceeds from Short Sales		—			50,740,408			—
Premiums Received for Written Options		—			831,554			—

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

26    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT             See Notes to Financial Statements.

STATEMENTS OF OPERATIONS

Year Ended December 31, 2009

	Long/Short Commodities			Multi-Hedge						Commodities
	Strategy Fund			Strategies Fund						Strategy Fund
	Period			Period						Period
	June 25, 2009 to			April 1, 2009 to						April 1, 2009 to
	December 31,			December 31,			Year Ended			December 31,			Year Ended
	2009			2009**			March 31,			2009**			March 31,
	(Consolidated)			(Consolidated)			2009			(Consolidated)			2009
INVESTMENT INCOME
Interest	$	16,528		$	62,823		$	1,568,110		$	80,071		$	1,755,260
Income from Securities Lending, net		—			—			55,484			—			50,406
Dividends, Net of Foreign Tax Withheld		—			990,006			1,722,837			—			—
Other Income		—			6,909			883			—			5,356
Total Income		16,528			1,059,738			3,347,314			80,071			1,811,022
EXPENSES
Investment Advisory Fees		198,953			1,200,685			2,246,324			392,420			863,431
Transfer Agent and Administrative Fees		49,304			—			—			127,025			287,810
Distribution & Service Fees:
A-Class		7,540			63,391			130,559			15,922			42,520
C-Class		8,664			212,860			423,942			44,455			81,843
H-Class		39,599			136,681			251,786			99,990			224,829
Portfolio Accounting Fees		19,721			—			—			50,810			114,298
Registration Fees		28,230			—			—			19,447			59,182
Tax Expense		—			5,237			—			—			—
Short Sales Dividend Expense		27			719,564			1,308,014			4			—
Trustees’ Fees*		989			—			—			6,405			15,556
Prime Broker Interest Expense		—			209,849			—			—			—
Custody Fees		5,731			—			—			13,601			30,639
Miscellaneous		31,940			—			17,258			54,291			3,974
Total Expenses		390,698			2,548,268			4,360,719			824,370			1,811,336
Less Expenses Waived by Advisor		(21,459	)		(42,798	)		—			(93,469	)		(368,460	)
Total Waived Expenses		(21,459	)		(42,798	)		—			(93,469	)		(368,460	)
Net Expenses		369,239			2,505,470			4,360,719			730,901			1,442,876
Net Investment Income (Loss)		(352,711	)		(1,445,732	)		(1,013,405	)		(650,830	)		368,146
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities		—			(1,058,278	)		(46,352,711	)		3,733,611			(27,236,287	)
Futures Contracts		(1,830,317	)		6,555,301			(46,645,020	)		(2,480,157	)		—
Securities Sold Short		—			(1,539,448	)		44,277,435			—			790,129
Written Options		—			(1,203,823	)		13,594,657			—			—
Total Net Realized Gain (Loss)		(1,830,317	)		2,753,752			(35,125,639	)		1,253,454			(26,446,158	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(1,190,231	)		11,069,143			2,033,407			7,653,568			(12,290,105	)
Futures Contracts		1,032,249			(1,910,478	)		29,703			92,331			—
Securities Sold Short		—			(6,325,292	)		(6,205,085	)		—			—
Written Options		—			(192,763	)		11,571			—			—
Net Change in Unrealized Appreciation (Depreciation)		(157,982	)		2,640,610			(4,153,546	)		7,745,899			(12,290,105	)
Net Gain (Loss) on Investments		(1,988,299	)		5,394,362			(39,279,185	)		8,999,353			(38,736,263	)
Net Increase (Decrease) in Net Assets from Operations	$	(2,341,010	)	$	4,407,591		$	(40,292,590	)	$	8,348,523		$	(38,368,117	)
Rebate Income on Proceeds for Securities Sold Short, included in Interest	$	—		$	—		$	346,494		$	—		$	—
Foreign Tax Withheld	$	—		$	542		$	732		$	—		$	—

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
**	The Fund changed its fiscal year end from March 31 to December 31 in 2009.

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    27

STATEMENTS OF CHANGES IN NET ASSETS

	Long/Short Commodities						Multi-Hedge
	Strategy Fund						Strategies Fund
	Year			Period
	Ended			April 1, 2009 to			Year			Year
	December			December			Ended			Ended
	31, 2009*			31, 2009**			March 31,			March 31,
	(Consolidated)			(Consolidated)			2009			2008
From Operations
Net Investment Income (Loss)	$	(352,711	)	$	(1,445,732	)	$	(1,013,405	)	$	6,183,924
Net Realized Gain (Loss) on Investments		(1,830,317	)		2,753,752			(35,125,639	)		(14,682,495	)
Net Change in Unrealized Appreciation (Depreciation)
on Investments		(157,982	)		2,640,610			(4,153,546	)		(4,060,931	)
Net Increase (Decrease) in Net Assets from Operations		(2,341,010	)		3,948,630			(40,292,590	)		(12,559,502	)
Distributions to Shareholders from:
Net Investment Income
A-Class		—			—			(273,036	)		(1,619,281	)
C-Class		—			—			(209,559	)		(1,944,242	)
H-Class		—			—			(437,025	)		(5,952,339	)
Realized Gain on Investments
A-Class		—			—			(135,740	)		(175,613	)
C-Class		—			—			(104,182	)		(210,855	)
H-Class		—			—			(217,266	)		(645,538	)
Total Distributions to Shareholders		—			—			(1,376,808	)		(10,547,868	)
Share Transactions
Proceeds from Shares Purchased
A-Class		12,282,484			13,875,407			68,515,501			40,780,536
C-Class		4,115,343			3,004,602			6,652,774			34,354,420
H-Class		83,162,611			35,282,532			38,869,824			100,077,742
Redemption Fees Collected
A-Class		733			1,080			7,637			3,288
C-Class		221			871			5,663			4,167
H-Class		3,541			2,066			13,462			13,008
Value of Shares Purchased through Dividend Reinvestment
A-Class		—			—			372,766			1,575,032
C-Class		—			—			291,840			2,046,966
H-Class		—			—			569,826			5,954,321
Value of Proceeds from Merger
A-Class		—			1,163,149			—			—
C-Class		—			1,731,123			—			—
H-Class		—			10,389,249			—			—
Cost of Shares Redeemed
A-Class		(1,279,371	)		(36,192,813	)		(52,667,407	)		(38,116,726	)
C-Class		(335,218	)		(10,634,421	)		(24,431,362	)		(24,156,055	)
H-Class		(10,298,930	)		(41,729,701	)		(98,051,422	)		(126,906,668	)
Net Increase (Decrease) in Net Assets From Share Transactions		87,651,414			(23,106,856	)		(59,850,898	)		(4,369,969	)
Net Increase (Decrease) in Net Assets		85,310,404			(19,158,226	)		(101,520,296	)		(27,477,339	)
Net Assets—Beginning of Period		—			137,013,172			238,533,468			266,010,807
Net Assets—End of Period	$	85,310,404		$	117,854,946		$	137,013,172		$	238,533,468
Undistributed Net Investment Income (Loss)—End of Period	$	3,745		$	43,981		$	(59,903	)	$	710,510

*	Since the commencement of operations: June 25, 2009.
**	The Fund changed its fiscal year end from March 31 to December 31 in 2009.

28    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.

			Commodities
			Strategy Fund
Period
April 1, 2009 to			Year			Year
December			Ended			Ended
31, 2009**			March 31,			March 31,
(Consolidated)			2009			2008
$	(650,830	)	$	368,146		$	1,820,924
	1,253,454			(26,446,158	)		10,534,067
	7,745,899			(12,290,105	)		9,210,448
	8,348,523			(38,368,117	)		21,565,439
	(57,691	)		(387,071	)		(109,198	)
	(42,550	)		(147,857	)		(74,170	)
	(208,991	)		(872,501	)		(267,525	)
	—			—			—
	—			—			—
	—			—			—
	(309,232	)		(1,407,429	)		(450,893	)
	12,304,021			37,803,837			20,571,490
	7,151,438			12,556,578			12,460,496
	113,245,828			229,127,411			272,980,653
	6,446			54,958			65,524
	4,047			27,481			40,266
	43,785			298,366			392,598
	54,393			371,452			104,193
	38,034			137,899			68,104
	199,611			821,992			239,163
	—			—			—
	—			—			—
	—			—			—
	(13,290,338	)		(38,336,017	)		(16,044,064	)
	(5,949,947	)		(13,889,845	)		(8,184,148	)
	(136,970,402	)		(281,575,152	)		(198,501,063	)
	(23,163,084	)		(52,601,040	)		84,193,212
	(15,123,793	)		(92,376,586	)		105,307,758
	61,882,187			154,258,773			48,951,015
$	46,758,394		$	61,882,187		$	154,258,773
$	6,857		$	309,227		$	1,407,429

See Notes to Financial Statements. THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    29

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		(Decrease)														RATIOS TO AVERAGE NET
					Realized		in														ASSETS:
					and		Net										NET
	NET ASSET		Net		Unrealized		Asset Value		Distributions		Distributions						ASSET													Net					Net Assets,
	VALUE,		Investment		Gains		Resulting		from Net		from Net				Redemption		VALUE,		Total											Investment			Portfolio		End of
	BEGINNING		Income		(Losses) on		from		Investment		Realized		Total		Fees		END OF		Investment		Total			Net			Operating			Income			Turnover		Period (000’s
Year Ended	OF PERIOD		(Loss)†		Investments		Operations		Income		Gains		Distributions		Collected		PERIOD		Return††		Expenses			Expenses			Expenses◊			(Loss)			Rate		omitted)
Long/Short Commodities Strategy Fund A-Class
December 31, 2009*n	$	25.00	$	(.23)	$	(.70)	$	(.93)	$	—	$	—	$	—	$	—§	$	24.07		(3.72)%		1.95%	**		1.84%	**		1.84%	**		(1.74)%	**		—	$	10,654
Long/Short Commodities Strategy Fund C-Class
December 31, 2009*n		25.00		(.33)		(.70)		(1.03)		—		—		—		—§		23.97		(4.16)%		2.70%	**		2.59%	**		2.59%	**		(2.50)%	**		—		3,642
Long/Short Commodities Strategy Fund H-Class
December 31, 2009*n		25.00		(.23)		(.71)		(.94)		—		—		—		—§		24.06		(3.76)%		1.95%	**		1.84%	**		1.84%	**		(1.75)%	**		—		71,014
Multi-Hedge Strategies Fund A-Class
December 31, 2009n▲		19.96		(.15)		.76		.61		—		—		—		—§		20.57		3.06%		2.36%	**		2.32%	**		1.40%	**		(1.47)%	**		858%		25,010
March 31, 2009		24.61		(.10)		(4.37)		(4.47)		(.12)		(.06)		(.18)		—§		19.96		(18.19)%		2.09%			2.09%			1.40%			(0.46)%			1,578%		45,078
March 31, 2008		26.44		.58		(1.53)		(.95)		(.79)		(.09)		(.88)		—§		24.61		(3.72)%		1.96%			1.96%			1.40%			2.18%			509%		42,193
March 31, 2007		25.52		.71		.80		1.51		(.38)		(.22)		(.60)		.01		26.44		6.05%		1.93%			1.93%			1.43%			2.74%			298%		41,771
March 31, 2006*		25.00		.29		.24		.53		(.07)		—		(.07)		.06		25.52		2.36%		1.87%	**		1.87%	**		1.45%	**		2.20%	**		127%		5,791
Multi-Hedge Strategies Fund C-Class
December 31, 2009n▲		19.43		(.31)		.78		.47		—		—		—		—§		19.90		2.42%		3.14%	**		3.09%	**		2.17%	**		(2.07)%	**		858%		23,494
March 31, 2009		24.13		(.25)		(4.27)		(4.52)		(.12)		(.06)		(.18)		—§		19.43		(18.76)%		2.82%			2.82%			2.17%			(1.09)%			1,578%		28,706
March 31, 2008		26.14		.37		(1.50)		(1.13)		(.79)		(.09)		(.88)		—§		24.13		(4.46)%		2.71%			2.71%			2.15%			1.41%			509%		54,857
March 31, 2007		25.42		.51		.80		1.31		(.38)		(.22)		(.60)		.01		26.14		5.28%		2.66%			2.66%			2.16%			1.99%			298%		48,052
March 31, 2006*		25.00		.19		.24		.43		(.07)		—		(.07)		.06		25.42		1.96%		2.65%	**		2.65%	**		2.23%	**		1.42%	**		127%		7,352
Multi-Hedge Strategies Fund H-Class
December 31, 2009n▲		19.98		(.21)		.81		.60		—		—		—		—§		20.58		3.00%		2.37%	**		2.33%	**		1.41%	**		(1.18)%	**		858%		69,351
March 31, 2009		24.63		(.07)		(4.40)		(4.47)		(.12)		(.06)		(.18)		—§		19.98		(18.17)%		2.07%			2.07%			1.41%			(0.31)%			1,578%		63,229
March 31, 2008		26.46		.58		(1.53)		(.95)		(.79)		(.09)		(.88)		—§		24.63		(3.71)%		1.95%			1.95%			1.39%			2.21%			509%		141,483
March 31, 2007		25.53		.72		.80		1.52		(.38)		(.22)		(.60)		.01		26.46		6.09%		1.90%			1.90%			1.40%			2.78%			298%		176,187
March 31, 2006*		25.00		.29		.25		.54		(.07)		—		(.07)		.06		25.53		2.40%		1.83%	**		1.83%	**		1.41%	**		2.18%	**		127%		30,796
Commodities Strategy Fund A-Class
December 31, 2009n▲		13.26		(.14)		3.37		3.23		(.11)		—		(.11)		.01		16.39		24.46%		1.56%	**		1.38%	**		1.38%	**		(1.24)%	**		220%		8,553
March 31, 2009		32.68		—§		(18.80)		(18.80)		(.70)		—		(.70)		.08		13.26		(57.55)%		1.52%			1.20%			1.20%			0.02%			390%		7,189
March 31, 2008		23.81		.68		8.27		8.95		(.22)		—		(.22)		.14		32.68		38.48%		1.51%			1.19%			1.19%			2.49%			405%		18,579
March 31, 2007		27.29		.63		(4.15)		(3.52)		—		—		—		.04		23.81		(12.75)%		1.46%			1.17%			1.17%			2.57%			672%		9,720
March 31, 2006*		25.00		.61		1.68		2.29		—		—		—		—		27.29		9.16%		1.71%	**		1.71%	**		1.71%	**		2.76%	**		—		8,751
Commodities Strategy Fund C-Class
December 31, 2009n▲		12.86		(.22)		3.26		3.04		(.11)		—		(.11)		.01		15.80		23.74%		2.31%	**		2.15%	**		2.15%	**		(2.03)%	**		220%		6,186
March 31, 2009		31.96		(.06)		(18.43)		(18.49)		(.70)		—		(.70)		.09		12.86		(58.03)%		2.28%			1.95%			1.95%			(0.22)%			390%		4,072
March 31, 2008		23.47		.48		8.09		8.57		(.22)		—		(.22)		.14		31.96		37.41%		2.26%			1.94%			1.94%			1.79%			405%		10,793
March 31, 2007		27.10		.56		(4.23)		(3.67)		—		—		—		.04		23.47		(13.39)%		2.23%			1.94%			1.94%			2.23%			672%		4,169
March 31, 2006*		25.00		.42		1.68		2.10		—		—		—		—		27.10		8.40%		2.34%	**		2.34%	**		2.34%	**		1.79%	**		—		4,128
Commodities Strategy Fund H-Class
December 31, 2009n▲		13.26		(.14)		3.37		3.23		(.11)		—		(.11)		.01		16.39		24.45%		1.56%	**		1.37%	**		1.37%	**		(1.22)%	**		220%		32,019
March 31, 2009		32.66		.13		(18.93)		(18.80)		(.70)		—		(.70)		.10		13.26		(57.52)%		1.52%			1.20%			1.20%			0.43%			390%		50,622
March 31, 2008		23.81		.60		8.30		8.90		(.22)		—		(.22)		.17		32.66		38.39%		1.51%			1.19%			1.19%			2.10%			405%		124,886
March 31, 2007		27.29		.77		(4.28)		(3.51)		—		—		—		.03		23.81		(12.75)%		1.49%			1.20%			1.20%			2.99%			672%		35,062
March 31, 2006*		25.00		.61		1.68		2.29		—		—		—		—		27.29		9.16%		1.57%	**		1.57%	**		1.57%	**		2.56%	**		—		29,028

30    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

FINANCIAL HIGHLIGHTS (concluded)

*	Since the commencement of operations:
	May 25, 2005 — Commodities Strategy Fund A-Class, C-Class, and H-Class;
	September 19, 2005 — Multi-Hedge Strategies Fund A-Class, C-Class;
	June 25, 2009 — Long/Short Commodities Strategy Fund A-Class, C-Class, and H-Class.
**	Annualized
†	Calculated using the average daily shares outstanding for the period.
††	Total investment return does not reflect the impact of any applicable sales charges and has not been annualized.
◊	Operating expenses exclude short dividends expense.
▲	The Fund changed its fiscal year end from March 31 to December 31 in 2009.
n	Consolidated.
§	Less than $.01 per share.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Organization and Significant Accounting Policies Organization

The Rydex Series Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the“1940 Act”) as a non-diversified, open-ended investment company. The Trust offers six separate classes of shares, Investor Class shares, Investor2 Class shares, Advisor Class shares, A-Class shares, C Class shares, and H-Class shares. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Sales of shares of each Class are made without a sales charge at the NAV, with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge, except for the U.S. Government Money Market Fund. The sales charge varies depending on the amount purchased, but will not exceed 4.75% . A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At December 31, 2009, the Trust consisted of fifty-five separate funds. This report covers the Long/Short Commodities Strategy Fund, the Multi-Hedge Strategies Fund (formerly known as “Absolute Return Strategies Fund”) and the Commodities Strategy Fund (collectively, the “Funds”). Only A-Class, C-Class and H-Class shares had been issued by the Funds. All share classes are subject to a 1% redemption fee when shares are redeemed within 30 days of purchase.

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

Each of the consolidated financial statements of the Long/Short Commodities Strategy Fund, Multi-Hedge Strategies Fund, and Commodities Strategy Fund include the accounts of a wholly-owned and controlled Cayman Islands subsidiary (the “Subsidiary”). Significant inter-company accounts and transactions have been eliminated in consolidation for the Funds.

Each Fund may invest up to 25% of its total assets in its Subsidiary which acts as an investment vehicle in order to effect certain investments consistent with the Fund’s investment objectives and policies.

A summary of each Fund’s investment in its respective Subsidiary is as follows:

					% of Total
			Subsidiary		Net Assets
	Inception		Net Assets at		of the Fund at
	Date of		December 31,		December 31,
	Subsidiary		2009		2009
Long/Short Commodities Strategy Fund		06/25/09	$	9,579,662		11.2	%
Multi-Hedge Strategies Fund		09/18/09		14,915,486		12.7	%
Commodities Strategy Fund		09/08/09		1,502,555		3.2	%

Significant Accounting Policies

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. 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. All time references are based on Eastern Time.

A. Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, usually as of 4:00 p.m. 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 4:00 p.m. 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.

32    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Debt securities 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 and repurchase agreements are valued at amortized cost, which approximates market value.

Open-end 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.

Structured notes are valued in accordance with the terms of their agreement at the value of the underlying index close, usually 4:00 p.m. adjusted for any interest accruals and financing charges. If the securities comprising the underlying index cease trading before a Fund’s close of business, the index will be fair valued with the use of an appropriate market indicator.

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 or incur rebate charges to borrow certain securities.

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

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1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 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.

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 settle-

ment 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. At December 31, 2009, none of the Funds held forward currency contracts.

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 effective 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. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the Classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees related to A-Class shares and H-Class shares and service and distribution fees related to C-Class shares, are charged directly to such Classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

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

34  |  THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2.   Financial Instruments

As part of its investment strategy, the Trust may utilize short sales and a variety of derivative instruments including, options, futures, options on futures, structured notes and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

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 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 counter-party’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.

In conjunction with the use of short sales, options, futures, options on futures, structured notes 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 counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency

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3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to, engage in currency hedging transactions, which generally involve buying currency forward, options or futures contracts. However, not all currency risk may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

The Fund may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets may fluctuate more than those of securities traded on U.S. markets. Many foreign countries lack accounting and disclosure standards comparable to those that apply to U.S. companies, and it may be more difficult to obtain reliable information regarding a foreign issuer’s financial condition and operations. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries portions of these taxes are recoverable, the non-recovered portion will reduce the income received by the Fund.

Emerging markets, which consist of countries that have an emerging stock market as defined by Standard & Poor’s^®, countries or markets with low- to middle-income economies as classified by the World Bank, and other

countries or markets with similar characteristics as determined by Rydex Investments, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. As a result, the securities of emerging market issuers may present market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in securities of developed foreign countries. In addition, the risks associated with investing in a narrowly defined geographic area are generally more pronounced with respect to investments in emerging market countries. The Fund may also be subject to this risk with respect to its investments in derivatives or other securities or financial instruments whose returns are related to the returns of emerging market securities.

3.   Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.

Certain Funds seek to gain exposure to their respective benchmarks by investing in commodity, currency, and financial-linked derivative instruments, including swap agreements, commodity options, futures and options on futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage
	of Fund’s net assets
Fund	on a daily basis
Long/Short Commodities Strategy Fund		45	%
Multi-Hedge Strategies Fund		25	%
Commodities Strategy Fund		10	%

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of December 31, 2009:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Location on the Statements of Assets and Liabilities
Derivative Investments Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation Margin on Futures       Contracts Investment Securities	Variation Margin on Futures       Contracts Written Options at Market Value
Currency/Commodity/Interest        rate contracts	Variation Margin on Futures       Contracts	Variation Margin on Futures       Contracts

The following table sets forth the fair value of the Funds’ derivative contracts by primary risk exposure as of December 31, 2009:

Asset Derivative Investments Value
			Written
	Futures		Option		Futures		Futures		Futures		Total Value at
	Equity		Equity		Currency		Commodity		Interest Rate		December 31,
Fund	Contracts*		Contracts		Contracts*		Contracts*		Contracts*		2009
Long/Short Commodities Strategy Fund	$	—	$	—	$	—	$	1,646,638	$	—	$	1,646,638
Multi-Hedge Strategies Fund		627,978		—		—		502,502		242,225		1,372,705
Commodities Strategy Fund		—		—		—		92,331		—		92,331

Liability Derivative Investments Value
			Written
	Futures		Option		Futures		Futures		Futures		Total Value at
	Equity		Equity		Currency		Commodity		Interest Rate		December 31,
Fund	Contracts*		Contracts		Contracts*		Contracts*		Contracts*		2009
Long/Short Commodities Strategy Fund	$	—	$	—	$	—	$	614,389	$	—	$	614,389
Multi-Hedge Strategies Fund		1,963		1,069,290		447,125		291,723		406,541		2,216,642
Commodities Strategy Fund		—		—		—		—		—		—

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations as of December 31, 2009:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts
	Net realized gain (loss) on written option transactions
	Change in net unrealized appreciation (depreciation) on futures       contracts
	Change in net unrealized appreciation (depreciation) on written       options
Currency/Commodity/Interest rate contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) on futures       contracts

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of December 31, 2009:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
			Written
	Futures		Option			Futures		Futures			Futures
	Equity		Equity			Currency		Commodity			Interest Rate
Fund	Contracts		Contracts			Contracts		Contracts			Contracts			Total
Long/Short Commodities
Strategy Fund	$	—	$	—		$	—	$	(1,830,317	)	$	—		$	(1,830,317	)
Multi-Hedge Strategies Fund		5,753,070		(1,203,823	)		1,599,945		(754,361	)		(43,353	)		5,351,478
Commodities Strategy Fund		—		—			—		(2,480,157	)		—			(2,480,157	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations
				Written								Futures
	Futures			Option			Futures			Futures		Interest
	Equity			Equity			Currency			Commodity		Rate
Fund	Contracts			Contracts			Contracts			Contracts		Contracts			Total
Long/Short Commodities Strategy Fund	$	—		$	—		$	—		$	1,032,249	$	—		$	1,032,249
Multi-Hedge Strategies Fund		(1,353,249	)		(192,763	)		(603,692	)		210,779		(164,316	)		(2,103,241	)
Commodities Strategy Fund		—			—			—			92,331		—			92,331

4.   Call Options Written

Transactions in options written during the year ended December 31, 2009, were as follows:

	Multi-Hedge Strategies Fund
	Number of			Premiums
	Contracts			Received
Options outstanding at March 31, 2009		—		$	—
Options written		10,505			4,626,178
Options terminated in closing purchase transactions		(9,060	)		(3,255,727	)
Options expired		(762	)		(531,593	)
Options exercised		(166	)		(7,304	)
Options outstanding at December 31, 2009		517		$	831,554

5.   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; 0.90% of the average daily net assets of the Long/Short Commodities Strategy Fund, and 1.15% of the average daily net assets of the Multi-Hedge Strategies Fund.

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 1.20%, 1.95%, and 1.20% per annum of the average monthly net assets of the A-Class, C-Class, and H-Class of the Fund (the “Contractual Fee Waiver”). The Contractual Fee Waiver was not able to be modified or eliminated prior to August 1, 2009, except with the approval of the Board of Trustees. Effective August 1, 2009, the contractual fee waiver was discontinued.

As part of its agreement with the Trust, Rydex Investments will pay all expenses of the Multi-Hedge Strategies 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 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 Multi-Hedge Strategies Fund 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 Multi-Hedge Strategies Fund 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 Multi-Hedge Strategies Fund are paid by Rydex Investments, as previously noted.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which the Distributor and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Service Provider provides distribution services, the Funds 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.

The Trust has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Funds to pay annual distribution and service fees of 0.75% of the Alternative Strategies Allocation Fund and 1.00% of the remaining Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates the shareholder’s financial advisor for providing on-going services to the shareholder. The annual distribution fee of 0.75% for the Funds reimburses the Distributor for paying the shareholder’s financial advisor an on-going sales commission. The Distributor advances the first year’s service and distribution fees to the financial advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended December 31, 2009, the Distributor retained sales charges of $734,427 relating to sales of A-Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

6.   Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders. Therefore, no Federal income tax provision has been recorded.

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 2007 — 2009), and has concluded that no provision for income tax was 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, unsettled short sales and excise tax regulations.

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period, capital loss carryforward expired, and the utilization of earnings and profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended December 31, 2009, the following Fund had previous losses permanently limited due to Treasury Regulations:

Fund	Amount
Multi-Hedge Strategies Fund	$	3,727,339

The tax character of distributions paid during the year ended December 31, 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Long/Short Commodities Strategy Fund	$	—	$	—	$	—
Multi-Hedge Strategies Fund		—		—		—
Commodities Strategy Fund		309,232		—		309,232

The tax character of distributions paid during the year ended March 31, 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Multi-Hedge Strategies Fund	$	1,270,043	$	106,765	$	1,376,808
Commodities Strategy Fund		1,407,429		—		1,407,429

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2008 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Multi-Hedge Strategies Fund	$	9,533,830	$	1,014,038	$	10,547,868
Commodities Strategy Fund		450,893		—		450,893

The tax character of distributable earnings/(accumulated losses) at December 31, 2009 was as follows:

	Undistributed		Undistributed		Net Unrealized
	Ordinary		Long-Term		Appreciation			Capital Loss
Fund	Income		Capital Gain		(Depreciation)			Carryforward
Long/Short Commodities
Strategy Fund	$	—	$	—	$	(157,982	)	$	—
Multi-Hedge Strategies Fund		—		—		1,334,696			(60,556,085	)1
Commodities Strategy Fund		—		—		8,557,316			(23,926,981	)1

Capital Loss Carryforward amounts may be limited due to U.S. Treasury Regulations.

¹ A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

													Total
	Expires in			Expires in			Expires in			Expires in			Capital Loss
Fund	2014			2015			2016			2017			Carryforward
Multi-Hedge Strategies Fund	$	—		$	(4,193,804	)	$	(47,013,421	)	$	(9,348,860	)	$	(60,556,085	)
Commodities Strategy Fund		(533,762	)		—			(622,379	)		(22,770,840	)		(23,926,981	)

At December 31, 2009, 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)
Long/Short Commodities Strategy Fund	$	80,201,648	$	—	$	(1,190,231	)	$	(1,190,231	)
Multi-Hedge Strategies Fund		107,618,805		8,359,606		(571,847	)		7,787,759
Commodities Strategy Fund		33,640,506		8,464,985		—			8,464,985

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 period ended December 31, 2009, the following amount of realized capital losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2010:

Fund	Capital
Multi-Hedge Strategies Fund	$	(206,011	)
Commodities Strategy Fund		(367,819	)

7.   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 Fund’s 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, 2009, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
HSBC Group	0.00% due 01/04/10	$	415,000,000	$	415,000,000	$	415,000,000
Morgan Stanley	0.00% due 01/04/10		340,000,000		340,000,000		340,000,000
Mizuho Financial Group, Inc.	0.00% due 01/04/10		288,192,929		288,192,929		288,192,929
Credit Suisse Group	(0.02)% due 01/04/10		100,374,956		100,374,956		100,374,733
Deutsche Bank	0.00% due 01/04/10		100,000,000		100,000,000		100,000,000
				$	1,243,567,885	$	1,243,567,662

40    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

At December 31, 2009, 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		01/31/14 — 12/31/16		1.75% — 3.25%	$	458,850,000	$	454,466,061
U.S. Treasury Bonds		02/15/20 — 08/15/23		6.25% — 8.50%		305,538,800		423,300,066
U.S. Treasury Bills		06/17/10 — 07/01/10		0.00%		396,734,600		396,341,643
							$	1,274,107,770

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.

8.     Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

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, 2009:

	Level 1		Level 1		Level 2		Level 2
	Investments		Other Financial		Investments		Other Financial
Fund	In Securities		Instruments*		In Securities		Instruments*		Total
Assets
Long/Short Commodities Strategy Fund	$	—	$	1,032,249	$	79,011,417	$	—	$	80,043,666
Multi-Hedge Strategies Fund		73,458,092		—		41,948,473		—		115,406,564
Commodities Strategy Fund		981,392		92,331		41,124,099		—		42,197,822
Liabilities
Long/Short Commodities Strategy Fund		—		—		—		—		—
Multi-Hedge Strategies Fund		57,409,973		843,937		—		—		58,253,910
Commodities Strategy Fund		—		—		—		—		—

* Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

9.     Securities Transactions

For the year ended December 31, 2009, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	Long/Short
	Commodities		Multi-Hedge		Commodities
	Strategy		Strategy		Strategy
Purchases	$	13,500,000	$	168,591,545	$	65,483,491
Sales	$	—	$	176,339,537	$	85,585,029

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    41

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

10.     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
	Period							Period						Period									Period
	April 1, 2009 to			Year Ended		Year Ended		April 1, 2009 to		Year Ended		Year Ended		April 1, 2009 to			Year Ended			Year Ended			April 1, 2009 to			Year Ended			Year Ended
	December 31,			March 31,		March 31,		December 31,		March 31,		March 31,		December 31,			March 31,			March 31,			December 31,			March 31,			March 31,
	2009			2009		2008		2009		2009		2008		2009			2009			2008			2009			2009			2008
Long/Short Commodities Strategy Fund*
A-Class		494,329			—		—		—		—		—		(51,693	)		—			—			442,636			—			—
C-Class		165,853			—		—		—		—		—		(13,895	)		—			—			151,958			—			—
H-Class		3,357,266			—		—		—		—		—		(405,932	)		—			—			2,951,334			—			—
Multi-Hedge Strategies Fund**
A-Class		742,434	†		2,922,719		1,539,342		—		18,264		61,772		(1,784,539	)		(2,397,397	)		(1,466,196	)		(1,042,105	)		543,586			134,918
C-Class		241,201	†		291,626		1,299,950		—		14,651		81,715		(538,234	)		(1,101,599	)		(946,572	)		(297,033	)		(795,322	)		435,093
H-Class		2,261,297	†		1,687,547		3,737,413		—		27,892		233,503		(2,056,900	)		(4,295,385	)		(4,883,815	)		204,397			(2,579,946	)		(912,899	)
Commodities Strategy Fund**
A-Class		818,978			1,527,572		735,802		3,482		24,438		4,195		(842,523	)		(1,578,531	)		(579,667	)		(20,063	)		(26,521	)		160,330
C-Class		475,027			459,367		468,782		2,526		9,336		2,792		(402,516	)		(489,811	)		(311,479	)		75,037			(21,108	)		160,095
H-Class		7,213,518			9,123,069		9,361,274		12,769		54,114		9,632		(9,089,856	)		(9,183,624	)		(7,020,121	)		(1,863,569	)		(6,441	)		2,350,785

*	Since commencement of operations: June 25, 2009.
**	The Fund changed its fiscal year from March 31 to December 31 in 2009.
†	Includes 57,725 A-Class, 88,368 C-Class, and 515,084 H-Class shares issued in connection with fund merger (See Note 14).

42    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

11.     Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33 1/3% of a Fund’s net assets, 33 1/3% of a Fund’s assets held by the Custodian or 33 1/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2010. As of and for the year ended December 31, 2009, the Funds did not have any outstanding borrowings under this agreement.

12.     New Accounting Pronouncements

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented in Note 8. The new disclosures and clarifications of existing disclosures are generally effective for the Funds’ year ending December 31, 2010 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

13.     Name Changes

Effective April 1, 2009, the Absolute Return Strategies Fund changed its name to Multi-Hedge Strategies Fund. The name change did not have any impact on the Fund’s investment objectives, tickers and CUSIPS.

14.     Fund Merger

On May 29, 2009, the Multi-Hedge Strategies Fund (formerly, the Absolute Return Strategies Fund) acquired all of the net assets of Hedged Equity Fund, a separate series of the Trust, in exchange for shares of the Multi-Hedge Strategies Fund, pursuant to an agreement and plan of reorganization approved by the Board of Trustees and approved by the shareholders of the Hedged Equity Fund. The primary reason for the transaction was to combine a smaller fund into a larger fund with a similar investment objective. The acquisition was accomplished through a combination of a tax-free exchange of the outstanding shares of the Hedged Equity Fund (64,908 A-Class; 99,376 C-Class, and 579,434 H-Class) valued at $13,283,521 ($1,163,149 A-Class; $1,731,123 C-Class, and $10,389,249 H-Class) for respective shares of the Multi-Hedge Strategies Fund (57,725 A-Class; 88,368 C-Class, and 515,084 H-Class), with the remainder coming from capital transactions. For financial reporting purposes, the net assets received and shares issued by Multi-Hedge Strategies Fund were recorded at fair value; however, the Hedged Equity Fund’s cost of the investments and proceeds from short sales were carried forward to align ongoing reporting of Multi-Hedge Strategies Fund realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Hedged Equity Fund’s net assets on May 29, 2009 were $13,283,521, including $458,961 of unrealized appreciation. Hedged Equity Fund’s net assets were primarily comprised of investments with a fair value of $13,975,264, deposits with brokers related to short sales with a fair value of $3,790,427 and obligations relating to short sales with a fair value of $4,426,820. The aggregate net assets of Multi-Hedge Strategies Fund immediately before and after the acquisition were $130,988,325 and $144,271,846, respectively.

The financial statements reflect the operations of the Multi-Hedge Strategies Fund for the period prior to the acquisition and the combined fund for the period subsequent to the fund merger. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Hedged Equity Fund that have been included in the combined fund’s Statement of Operations since the acquisition was completed. Assuming the acquisition had been completed on April 1, 2009, Multi-Hedge Strategies Fund pro-forma net investment income, net gain on investments and net increase in net assets from operations for the period April 1, 2009 to December 31, 2009 would have been $(1,495,733), $3,584,923 and $4,761,104, respectively. Rydex Investments and its affiliates bore all of the expenses related to the reorganization.

15.     Subsequent Events

Management has evaluated events or transactions that may have occurred since December 31, 2009, that would merit recognition or disclosure in the financial statements. This evaluation was completed through February 26, 2010, the date the financial statements were available to be issued.

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (concluded)

On February 15, 2010, Security Benefit Mutual Holding Company (“SBMHC”), the parent company of Security Benefit Corporation (“SBC”) and the ultimate parent company of Rydex Investments, entered into a Purchase and Sale Agreement whereby Guggenheim SBC Holdings LLC (“Guggenheim Holdings”) will, subject to regulatory approval, policyholder approval and approval by the shareholders of the mutual funds and exchange traded funds sponsored by affiliates of SBMHC, purchase all of the issued and outstanding stock of SBC (the “SBC Purchase Transaction”). The SBC Purchase Transaction would result in a change of control of Rydex Investments whereby SBC and its subsidiaries would be wholly-owned by Guggenheim Holdings. If the SBC Purchase Transaction does not close, other than as a result of a breach by Guggenheim Holdings or for certain other reasons, then SBC will sell its asset management business to Guggenheim Holdings, which would include Rydex Investments and would result in a change of control of Rydex Investments. The sale of SBC’s asset management business, like the SBC Purchase Transaction, would be subject to regulatory approval and approval by the shareholders of the mutual funds and exchange traded funds sponsored by affiliates of SBMHC.

44    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of Rydex Series Funds:

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Rydex|SGI Long/Short Commodities Strategy Fund, Rydex|SGI Multi-Hedge Strategies Fund, and Rydex|SGI Commodities Strategy Fund (three of the series constituting the Rydex Series Funds)(the “Funds”) as of December 31, 2009, and the related statements of operations and statements of changes in net assets for each of the years or periods indicated therein (consolidated for the period ended December 31, 2009), and financial highlights for each of the years or periods presented in the period April 1, 2006 through December 31, 2009 (consolidated for the period ended December 31, 2009). 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 financial highlights for the period ended March 31, 2006 were audited by other auditors, whose report dated May 18, 2006 expressed an unqualified opinion on those 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, 2009, 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 consolidated financial position of the above listed Funds at December 31, 2009, the results of their operations and the changes in their net assets for each of the years or periods indicated therein (consolidated for the period ended December 31, 2009), and their financial highlights for each of the years or periods presented in the period April 1, 2006 through December 31, 2009 (consolidated for the period ended December 31, 2009), in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 26, 2010

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    45

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended 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.

Rydex Investments Board Review and Approval of the Investment Advisory Agreement

The Investment Company Act of 1940 (the “1940 Act”) requires that the initial approval of, as well as the continuation of, a fund’s investment advisory agreement be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. In addition, the Securities and Exchange Commission (the “SEC”) takes the position that, as part of their fiduciary duties with respect to fund fees, fund boards are required to evaluate the material factors applicable to a decision to approve (or renew) an investment advisory agreement.

Consistent with these responsibilities, the Rydex Series Funds Board of Trustees (the “Board”) generally calls and holds one meeting each year that is dedicated to considering whether to renew the investment advisory agreement between Rydex Series Funds (the “Trust”) and PADCO Advisors, Inc., which does business under the name Rydex Investments (“Rydex Investments”) (the “Advisory Agreement”), with respect to existing funds in the Trust, including the funds discussed in this Annual Report, the Managed Futures Strategy Fund, the Long/Short Commodities Strategy Fund, the Multi-Hedge Strategies Fund, and the Commodities Strategy Fund (each a “Fund” and collectively, the “Funds”), and to reviewing certain other agreements pursuant to which Rydex Investments provides investment advisory services to certain other registered investment companies. In preparation for the meeting, the Board requests and reviews a wide variety of materials provided by Rydex Investments, including information about Rydex Investments’ affiliates, personnel and operations. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to Fund operations and performance. The Board also receives a memorandum from Fund counsel regarding the responsibilities of the Board for the approval of investment advisory agreements. In addition, the Independent Trustees receive advice from independent counsel to the Independent Trustees, meet in executive session outside the presence of Fund management, and participate in question and answer sessions with representatives of Rydex Investments.

At an in-person meeting held on August 25, 2009, called for the purpose of among other things, voting on the renewal of the Advisory Agreement, the Board, including all of the Independent Trustees (the “Annual Renewal Meeting”), considered and approved the selection of Rydex Investments as the Funds’ investment advisor and the continuance of the Advisory Agreement for an additional one-year period, based on its review of qualitative and quantitative information provided by Rydex Investments.

Board Considerations in Approving the Continuation of the Advisory Agreement

In preparation for the Annual Renewal Meeting, the Board requested and received written materials from Rydex Investments about: (a) the quality of Rydex Investments’ investment management and other services; (b) Rydex Investments’ investment management personnel; (c) Rydex Investments’ operations and financial condition; (d) Rydex Investments’ brokerage practices (including any soft dollar arrangements) and investment strategies; (e) the level of the advisory fees that Rydex

46    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited) (continued)

Investments charges the Funds compared with the fees it charges to comparable mutual funds or accounts; (f) each Fund’s overall fees and operating expenses compared with similar mutual funds; (g) the level of Rydex Investments’ profitability from its Fund-related operations; (h) Rydex Investments’ compliance systems; (i) Rydex Investments’ policies and compliance procedures applicable to personal securities transactions; (j) Rydex Investments’ reputation, expertise and resources in the financial markets; and (k) Fund performance compared with similar mutual funds. Certain of these considerations are discussed in more detail below. In its deliberations at the Annual Renewal Meeting, the Board did not identify any single piece of information that was all-important or controlling. Based on the Board’s deliberations and its evaluation of the information referenced above and described in more detail below, the Board, including all of the Independent Trustees, unanimously: (a) concluded that terms of the Advisory Agreement are fair and reasonable; (b) concluded that Rydex Investments’ fees were reasonable in light of the services that Rydex Investments provides to each of the Funds; and (c) agreed to renew the Advisory Agreement for an additional one-year term.

In approving the continuation of the Advisory Agreement at the Annual Renewal Meeting, the Board, including the Independent Trustees advised by independent counsel, considered the factors discussed below.

Nature, Extent And Quality Of Services Provided By Rydex Investments
At the Annual Renewal Meeting, the Board reviewed the scope of services to be provided by Rydex Investments under the Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by Rydex Investments for the past year and the scope of services required to be provided by Rydex Investments for the upcoming year. In reviewing the scope of services provided to the Funds by Rydex Investments, the Board reviewed and discussed Rydex Investments’ investment experience, noting that Rydex Investments and its affiliates have committed significant resources over time to the support of the Funds. The Board also considered Rydex Investments’ compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that Rydex Investments provides information regarding portfolio management and compliance to the Board on a periodic basis in connection with regularly scheduled meetings of the Board. In addition to the above considerations, the Board reviewed and considered Rydex Investments’ investment processes and strategies, and matters related to Rydex Investments’ portfolio transaction policies and procedures. In addition, the Board reviewed and considered each Fund’s investment in wholly-owned and controlled Cayman Islands subsidiaries (each a “Subsidiary”), and noted that each Subsidiary has entered into a separate advisory agreement with Rydex Investments for the management of that Subsidiary’s portfolio pursuant to which the Subsidiary pays Rydex Investments a management fee at the same rate that the Subsidiary’s corresponding Fund pays Rydex Investments. The Board noted that Rydex Investments has contractually agreed to waive the management fee it receives from each Fund in an amount equal to the management fee paid to Rydex Investments by each Fund’s Subsidiary and that the contractual fee waiver will continue in effect for so long as each Fund invests in its Subsidiary. The Board further noted that the contractual fee waiver may not be terminated by Rydex Investments unless the Board approves such termination. With regard to the Commodities Strategy Fund, the Board also noted the substantial volume of portfolio trades and shareholder transaction activity, in general, processed by Rydex Investments due to the unlimited exchange policy of the Fund. Based on this review, the Board concluded that the nature, extent, and quality of services to be provided by Rydex Investments to the Funds under the Advisory Agreement were appropriate and continued to support the Board’s original selection of Rydex Investments as investment adviser to the Funds.

Fund Expenses And Performance Of The Funds And Rydex Investments
At the Annual Renewal Meeting, the Board reviewed statistical information prepared by Rydex Investments regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other funds registered under the 1940 Act determined by Rydex Investments to comprise each Fund’s applicable peer group. Because few funds seek to provide unlimited exchange privileges similar to those of the Commodities Strategy Fund, the Commodities Strategy Fund’s peer group is generally limited to the funds of two unaffiliated mutual fund families. In addition, the Board reviewed statistical information prepared by Rydex Investments relating to the performance of each Fund, as well as each Fund’s (with the exception of the Multi-Hedge Strategies Fund) ability to successfully track its benchmark over time, and a comparison of each Fund’s performance to funds with similar investment objectives for the same periods and to appropriate indices/benchmarks, in light of total return, yield and market trends. The Board further noted that despite the lack of a sizeable peer group for certain of the Funds, the peer fund information presented to the Board was meaningful because the peer funds’ investment objectives and strategies were closely aligned with those of the Funds. The Board also noted that the investment advisory fees for the Funds were equivalent to those of their peers and that the overall expenses for the Funds were only slightly higher

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    47

OTHER INFORMATION (Unaudited) (concluded)

than the total expenses of the peer funds, due in part to differing share classes and distribution fees. Based on this review, the Board concluded that the investment advisory fees and expense levels and the historical performance of the Funds, as managed by Rydex Investments, as compared to the investment advisory fees and expense levels and performance of the peer funds, were satisfactory for the purposes of approving the continuance of the Advisory Agreement.

Costs Of Services Provided To The Funds And Profits Realized By Rydex Investments And Its Affiliates
At the Annual Renewal Meeting, the Board reviewed information about the profitability of the Funds to Rydex Investments based on the advisory fees payable under the Advisory Agreement for the last calendar year. Rydex Investments also presented the Board with material discussing its methodology for determining the level of advisory fees assessable to the Funds. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to Rydex Investments. The Board also reviewed information regarding direct revenue received by Rydex Investments and ancillary revenue received by Rydex Investments and/or its affiliates in connection with the services provided to the Funds by Rydex Investments (as discussed below) and/or its affiliates. The Board also discussed Rydex Investments’ profit margin as reflected in Rydex Investments’ profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits to be realized by Rydex Investments and its affiliates under the Advisory Agreement and from other relationships between the Funds and Rydex Investments and/or its affiliates, if any, were within the range the Board considered reasonable and appropriate.

Economies Of Scale
In connection with its review of the Funds’ profitability analysis at the Annual Renewal Meeting, the Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ asset levels. The Board noted that the Advisory Agreement did not provide for any breakpoints in the investment advisory fees as a result of increases in the asset levels of the Funds. The Board also noted that though Rydex Investments’ assets under management were significant, the amount is spread among more than 100 funds. Further limiting the realization of economies of scale, is the ability of shareholders of many of the funds, including the Commodities Strategy Fund, to engage in unlimited trading. The Board also reviewed and considered Rydex Investments’ historic profitability as investment adviser to the Funds and determined that reductions in advisory fees or additions of breakpoints were not warranted at this juncture. Based on this review, the Board, recognizing its responsibility to consider this issue at least annually, determined that the economies of scale, if any, were de minimis.

Other Benefits To Rydex Investments And/Or Its Affiliates
At the Annual Renewal Meeting, in addition to evaluating the services provided by Rydex Investments, the Board also considered the nature, extent, quality and cost of the administrative, distribution, and shareholder services performed by Rydex Investments’ affiliates under separate agreements. The Board noted that Rydex Investments reports its use of soft dollars to the Board on a quarterly basis, as well as any portfolio transactions on behalf of the Funds placed through an affiliate of the Funds or Rydex Investments pursuant to Rule 17e-1 under the 1940 Act. Based on its review, the Board concluded that the nature and quality of the services provided by Rydex Investments’ affiliates to the Trust will benefit the Funds’ shareholders, and that any ancillary benefits would not be disadvantageous to the Funds’ shareholders, particularly in light of the Board’s view that the Funds’ shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment strategies and services.

48    |    THE RYDEX | SGI SERIES FUNDS 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.

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)
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

THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT    |    49

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	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); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nick Bonos* Vice President and Treasurer (1963)	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 (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); 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, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)

50    |    THE RYDEX | SGI SERIES FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos*	Controller of Rydex Series Funds, Rydex Variable Trust, Controller (1974) Rydex Dynamic Funds and 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 | SGI SERIES FUNDS ANNUAL REPORT    |    51

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Item 2. Code of Ethics.

The registrant’s Board of Trustees has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. 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, 2009 and March 31, 2009 were $80,155 and $70,908, respectively. The aggregate Audit Related Fees by the Trust’s principal accountant billed for the fiscal years ended December 31, 2009 and March 31, 2009 were $75,000 and $75,000, respectively. The aggregate Tax Fees billed by the 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, 2009 and March 31, 2009 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 $75,000, 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 9, 2010, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex Series Funds (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, Richard M. Goldman, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Series Funds;

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 9, 2010
	/s/ Richard M. Goldman
	Richard M. Goldman,
	President

EX.-12(a)(2)(ii)

CERTIFICATION

I, Nick Bonos, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Series Funds;

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 9, 2010
	/s/ Nick Bonos
	Nick Bonos,
	Vice President & Treasurer

EX. -12(b)(i)

CERTIFICATION

I, Richard M. Goldman, President of Rydex Series Funds (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 9, 2010
	/s/ Richard M. Goldman
	Richard M. Goldman,
	President

EX. -12(b)(ii)

CERTIFICATION

I, Nick Bonos, Vice President and Treasurer of Rydex Series Funds (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 9, 2010
	/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 Series Funds

By (Signature and Title)*	/s/ Richard M. Goldman
	Richard M. Goldman, President

Date March 9, 2010

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/ Richard M. Goldman
	Richard M. Goldman, President

Date March 9, 2010

By (Signature and Title)*	/s/ Nick Bonos
	Nick Bonos, Vice President and Treasurer

Date March 9, 2010

* Print the name and title of each signing officer under his or her signature.