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- 08821
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Rydex Variable Trust
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(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
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(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex Variable Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-301-296-5100
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Date of fiscal year end: December 31, 2004
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Date of reporting period: December 31, 2004
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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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
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THE RYDEX VARIABLE TRUST
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ANNUAL REPORT
DECEMBER 31, 2004
NOVA FUND
URSA FUND
OTC FUND
ARKTOS FUND
TITAN 500 FUND
VELOCITY 100 FUND
MEDIUS FUND
INVERSE MID-CAP FUND
MEKROS FUND
INVERSE SMALL-CAP FUND
U.S. GOVERNMENT BOND FUND
JUNO FUND
LARGE-CAP EUROPE FUND
LARGE-CAP JAPAN FUND
LONG DYNAMIC DOW 30 FUND
INVERSE DYNAMIC DOW 30 FUND
SMALL-CAP VALUE FUND
MID-CAP VALUE FUND
LARGE-CAP VALUE FUND
SMALL-CAP GROWTH FUND
MID-CAP GROWTH FUND
LARGE-CAP GROWTH FUND
SECTOR ROTATION FUND
U.S. GOVERNMENT MONEY MARKET FUND
BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
CONSUMER PRODUCTS FUND
ELECTRONICS FUND
ENERGY FUND
ENERGY SERVICES FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
INTERNET FUND
LEISURE FUND
PRECIOUS METALS FUND
REAL ESTATE FUND
RETAILING FUND
TECHNOLOGY FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
UTILITIES FUND
[LOGO] RYDEXINVESTMENTS
VA-ANN-1204 Essential for modern markets(TM)
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
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LETTER TO OUR SHAREHOLDERS................................................ 2
ABOUT SHAREHOLDERS FUND'S EXPENSES........................................ 4
PERFORMANCE REPORTS AND FUND PROFILES..................................... 7
SCHEDULES OF INVESTMENTS.................................................. 49
STATEMENTS OF ASSETS AND LIABILITIES...................................... 150
STATEMENTS OF OPERATIONS.................................................. 158
STATEMENTS OF CHANGES IN NET ASSETS....................................... 166
FINANCIAL HIGHLIGHTS...................................................... 178
NOTES TO FINANCIAL STATEMENTS............................................. 183
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM................... 194
OTHER INFORMATION......................................................... 195
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS................... 196
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1
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DEAR SHAREHOLDER:
The U.S. economy in 2004 was a study in contradiction, with a few surprises as
well as continuation of long-running trends such as continued outperformance of
small-caps, mid-caps and value. Entering 2004, job creation was stubbornly
disappointing and the unemployment rate hovered near 6.0%. The first few months
of the year brought more of the same, but the economy shifted into a more mature
phase last spring. Despite record-high oil prices that reached $55 per barrel in
October before leveling off at $43 at year-end, and a series of Federal Reserve
rate hikes that brought the Fed funds rate up to 2.25% from 1.0%, inflation
remained tame, job creation picked up and the nation's economy grew at a
sustainable rate.
More than two million jobs were created in 2004, while the unemployment rate
dropped to 5.4% in December. Inflation, measured by the Consumer Price Index
("CPI"), grew at 3.3%, but energy price hikes comprised a good portion of the
increase, with the core inflation index remaining historically low. When final
figures are released, gross domestic product will have grown between 3% and 4%
annually, while corporate profits leveled off from their hyper pace at the
beginning of the year.
Domestic equity markets struggled for much of the year, before a final-quarter
push pumped up index numbers. As a group, small stocks outperformed large stocks
for the year, despite struggling during the middle two quarters. The S&P 500(R)
Index advanced 10.89% for the year and the Dow Jones Industrial Average Index
gained 5.31%. The Nasdaq 100 Index(R) began the year at 1467.92 and sank to
1304.43 in August, before advancing to 1621.12 at the end of the
year--delivering a 10.43% one-year return. In contrast, the S&P MidCap 400 and
Russell 2000 indices returned 16.48% and 18.33%, respectively. Value
outperformed growth for the fourth consecutive year - a surprise - while
small-cap and mid-cap stocks outperformed large-cap stocks.
RYDEX BENCHMARK FUNDS
With broad market indices in positive territory for the year, Rydex long
benchmark funds also enjoyed positive performance. Mid- and small-cap stocks
reigned in 2004, with the Russell 2000 and the S&P MidCap 400 delivering 18.33%
and 16.48% returns, respectively, for the year. In fact, the Russell bested the
S&P 500 for the sixth year straight and the S&P MidCap 400 outdid the venerable
index for the fifth consecutive year. Likewise, Rydex Medius Fund, which seeks
to provide 150% of the daily price performance of the S&P MidCap 400 Index,
turned in a 22.14% one-year return, while Rydex Mekros Fund, which seeks to
provide 150% of the daily price performance of the Russell 2000 Index, provided
a 25.20% return. Rydex Nova Fund, which seeks to provide 150% of the daily price
performance of the S&P 500, and Rydex OTC Fund, which seeks to provide 100% of
the daily price performance of the Nasdaq 100, delivered 14.62% and 9.35%
returns, respectively, for the year. As would be expected on the short side,
with positive performance among the benchmark indexes, the Rydex inverse funds
were in negative territory for the year.
RYDEX VALUE AND GROWTH FUNDS
Value stocks showed a staying power in 2004, outperforming growth stocks across
most styles. In the large-cap stock arena, the S&P 500/Barra Value Index rose
13.34% for the period, in contrast to the S&P 500/Barra Growth Index's return of
4.70%. The S&P MidCap 400/Barra Value Index returned 17.08% versus the 13.19%
return of the S&P MidCap 400/Barra Growth Index. Also, the S&P SmallCap
600/Barra Value Index gained 21.78%, outperforming the S&P SmallCap 600/Barra
Growth Index, which returned 21.37%. Rydex Large-Cap Growth Fund returned 4.26%
and Rydex Mid-Cap Growth Fund returned 8.52%, the only two style funds that
didn't best the S&P 500 Index or the S&P 1500 Super Composite Index.
RYDEX INTERNATIONAL FUNDS
International stocks, especially from emerging economies, surprisingly
outperformed domestic equities for the second consecutive year. The average
emerging market fund returned 25%, while the MSCI EAFE Index returned 17.6% for
2004, with about one-third of the latter's performance due to the dollar's
decline against international currencies. In Europe, the Dow Jones STOXX 50
Index advanced just 4.30%, but returned 16.15% when the currency exchange was
factored into the equation. Utilities and energy led the overseas rally, while
semiconductor stocks lagged the index. Japanese stocks didn't fare as well, with
the Topix 100 Index returning 6.76% for the 12 months. Financial services stocks
helped performance, but semiconductors detracted. A 4% annual appreciation of
the yen helped boost the index. Rydex Large-Cap Europe Fund was up 16.15% and
Rydex Large-Cap Japan Fund advanced 10.33%.
RYDEX BOND FUNDS
Investors anticipated that interest rates would begin to rise in 2004, and they
were not disappointed as the Federal Reserve raised its Fed funds rate 25 basis
points five separate times from June 30 through year-end. Once the CPI met
forecasts in mid-year, Fed Reserve Chairman Alan Greenspan not only raised the
benchmark rate for the first time since 2000, but announced the board's
intention to continue a series of measured rate hikes to head off inflation
while maintaining job creation. In April, economic reports indicated an improved
employment picture forcing inflationary concerns to gather steam. Long-term
Treasury rates rose steadily until June, when increasing oil prices threatened
to slow the economy and unemployment remained too high. As a result,
inflationary pressures declined and long Treasury yields drifted lower. The
current Long Bond ended the year at 4.82%. The 10-year Treasury note, when all
was said and done, finished the 12 months about where it began, yielding 4.22%.
In contrast, yields of shorter-term Treasuries continued to rise flattening the
yield curve. Rydex U.S. Government Bond Fund returned 8.42%. The fund' s
objective is correlation to 120% of the daily performance of the Lehman Long
Treasury Bond Index.
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
RYDEX SECTOR FUNDS
It was a positive year for sector investing, with a wide dispersion of returns
providing opportunities for investors and positive returns across most sectors.
Twelve of the 18 Rydex sector funds bested the S&P 500. Propelled by increased
demand and record high crude oil prices, Rydex Energy Services Fund was top dog
among the Rydex sector funds, sporting a 33.74% annual return. Following close
behind were Rydex Energy Fund at 32.27%, Rydex Real Estate Fund at 29.54% and
Rydex Transportation Fund at 22.99%. Only two Rydex sector funds were in
negative territory: Rydex Electronics Fund and Rydex Precious Metals Fund,
weighed down by overcapacity in the former industry and a stock market rebound
and dollar strengthening in the latter.
As always, we appreciate the trust you have placed in our firm's quality and
integrity by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur
President
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 3
ABOUT SHAREHOLDERS FUND'S EXPENSES
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All mutual funds have operating expenses and it is important for our
shareholders to understand the impact of costs on their investments. As a
shareholder of the fund, you incur two types of costs: (1) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (2) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. Operating expenses, which are deducted from a fund's gross income,
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 you
understand your ongoing costs (in dollars) of investing in the 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, 2004 and
ending December 31, 2004.
The following tables illustrate your fund's costs in two ways:
TABLE 1. BASED ON ACTUAL FUND RETURN. This section helps you estimate the actual
expenses that you paid over the period. The "Ending Account Value" shown is
derived from the fund's actual return, and the fourth column shows the dollar
amount that would have been paid by an investor who started with $1,000 in the
fund. You may use the information here, together with the amount you invested,
to estimate the expenses that you paid over the period. Simply divide your
account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number given for your fund
under the heading "Expenses Paid During Period."
Certain retirement plans such as IRA, Roth IRA and 403(b) accounts are charged
an annual $15 maintenance fee. Upon liquidating your retirement account, a $15
account-closing fee will be taken from the proceeds of your redemption.
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your fund's cost with those of other mutual funds. The table provides
information about hypothetical account values and hypothetical expenses based
on the fund's actual expense ratio and an assumed rate of return of 5% per
year before expenses, which is not the fund's actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid during the period. In addition, certain
retirement plans such as IRA, Roth IRA and 403(b) accounts are charged an
annual $15 maintenance fee. Upon liquidating your retirement account, a $15
account-closing fee will be taken from the proceeds of your redemption. The
example is useful in making comparisons because the Securities Exchange
Commission requires all mutual funds to calculate expenses based on the 5%
return. You can assess your fund's costs by comparing this hypothetical
example with the hypothetical examples that appear in shareholder reports of
other funds.
The calculations above assume no shares were bought or sold during the period.
Your actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
Note that the expenses shown in the table are meant to highlight and help you
compare ongoing costs only and do not reflect any transactional costs which may
be incurred by some of the fund's classes. These costs may include, but are not
limited to, sales charges (loads), redemption fees, and exchange fees.
See Notes to Financial Statements.
4 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONTINUED)
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You can find more information about the fund's expenses, including annual
expense ratios for the past five years, 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.
TABLE 1. BASED ON ACTUAL FUND RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIOS+ JUNE 30, 2004 DECEMBER 31, 2004 PERIOD*
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ACTUAL FUND RETURN
NOVA FUND 1.40% $1,000.00 $1,091.71 $7.35
URSA FUND 1.60% 1,000.00 936.82 7.76
OTC FUND 1.44% 1,000.00 1,061.99 7.42
ARKTOS FUND 1.62% 1,000.00 927.11 7.83
TITAN 500 FUND 1.62% 1,000.00 1,116.74 8.62
VELOCITY 100 FUND 1.63% 1,000.00 1,101.52 8.60
MEDIUS FUND 1.61% 1,000.00 1,134.75 8.62
INVERSE MID-CAP FUND 1.63% 1,000.00 913.86 7.80
MEKROS FUND 1.62% 1,000.00 1,148.53 8.75
INVERSE SMALL-CAP FUND 1.66% 1,000.00 899.03 7.91
U.S. GOVERNMENT BOND FUND 1.19% 1,000.00 1,108.50 6.31
JUNO FUND 1.61% 1,000.00 911.33 7.70
LARGE-CAP EUROPE FUND 1.61% 1,000.00 1,191.21 8.87
LARGE-CAP JAPAN FUND 1.56% 1,000.00 1,014.24 7.89
LONG DYNAMIC DOW 30 FUND 1.63% 1,000.00 1,060.61 8.44
INVERSE DYNAMIC DOW 30 FUND 1.63% 1,000.00 915.36 7.81
SMALL-CAP VALUE FUND 1.46% 1,000.00 1,113.93 7.73
MID-CAP VALUE FUND 1.48% 1,000.00 1,107.71 7.83
LARGE-CAP VALUE FUND 1.45% 1,000.00 1,102.37 7.65
SMALL-CAP GROWTH FUND 1.46% 1,000.00 1,087.67 7.62
MID-CAP GROWTH FUND 1.46% 1,000.00 1,063.92 7.55
LARGE-CAP GROWTH FUND 1.46% 1,000.00 1,022.19 7.41
SECTOR ROTATION FUND 1.59% 1,000.00 1,101.68 8.36
U.S. GOVERNMENT MONEY MARKET FUND 1.18% 1,000.00 1,002.34 5.93
BANKING FUND 1.57% 1,000.00 1,114.77 8.35
BASIC MATERIALS FUND 1.57% 1,000.00 1,146.22 8.44
BIOTECHNOLOGY FUND 1.56% 1,000.00 993.31 7.81
CONSUMER PRODUCTS FUND 1.58% 1,000.00 1,032.24 8.04
ELECTRONICS FUND 1.56% 1,000.00 867.02 7.28
ENERGY FUND 1.57% 1,000.00 1,158.60 8.50
ENERGY SERVICES FUND 1.57% 1,000.00 1,166.76 8.53
FINANCIAL SERVICES FUND 1.57% 1,000.00 1,125.29 8.37
HEALTH CARE FUND 1.57% 1,000.00 1,016.60 7.94
INTERNET FUND 1.54% 1,000.00 1,052.60 7.94
LEISURE FUND 1.56% 1,000.00 1,166.29 8.49
PRECIOUS METALS FUND 1.41% 1,000.00 1,087.56 7.39
REAL ESTATE FUND 1.57% 1,000.00 1,230.74 8.80
RETAILING FUND 1.57% 1,000.00 1,053.96 8.08
TECHNOLOGY FUND 1.53% 1,000.00 1,004.75 7.71
TELECOMMUNICATIONS FUND 1.55% 1,000.00 1,063.73 8.03
TRANSPORTATION FUND 1.57% 1,000.00 1,161.46 8.48
UTILITIES FUND 1.55% 1,000.00 1,130.07 8.29
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See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
ABOUT SHAREHOLDERS FUND'S EXPENSES (CONCLUDED)
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TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIOS+ JUNE 30, 2004 DECEMBER 31, 2004 PERIOD*
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HYPOTHETICAL 5% RETURN
NOVA FUND 1.40% $1,000.00 $1,042.80 $7.20
URSA FUND 1.60% 1,000.00 1,041.78 8.22
OTC FUND 1.44% 1,000.00 1,042.62 7.38
ARKTOS FUND 1.62% 1,000.00 1,041.65 8.35
TITAN 500 FUND 1.62% 1,000.00 1,041.65 8.35
VELOCITY 100 FUND 1.63% 1,000.00 1,041.61 8.39
MEDIUS FUND 1.61% 1,000.00 1,041.70 8.30
INVERSE MID-CAP FUND 1.63% 1,000.00 1,041.61 8.39
MEKROS FUND 1.62% 1,000.00 1,041.65 8.35
INVERSE SMALL-CAP FUND 1.66% 1,000.00 1,041.46 8.54
U.S. GOVERNMENT BOND FUND 1.19% 1,000.00 1,043.86 6.14
JUNO FUND 1.61% 1,000.00 1,041.70 8.30
LARGE-CAP EUROPE FUND 1.61% 1,000.00 1,041.70 8.30
LARGE-CAP JAPAN FUND 1.56% 1,000.00 1,041.97 8.03
LONG DYNAMIC DOW 30 FUND 1.63% 1,000.00 1,041.61 8.39
INVERSE DYNAMIC DOW 30 FUND 1.63% 1,000.00 1,041.61 8.39
SMALL-CAP VALUE FUND 1.46% 1,000.00 1,042.50 7.50
MID-CAP VALUE FUND 1.48% 1,000.00 1,042.38 7.62
LARGE-CAP VALUE FUND 1.45% 1,000.00 1,042.54 7.46
SMALL-CAP GROWTH FUND 1.46% 1,000.00 1,042.50 7.50
MID-CAP GROWTH FUND 1.46% 1,000.00 1,042.50 7.50
LARGE-CAP GROWTH FUND 1.46% 1,000.00 1,042.50 7.50
SECTOR ROTATION FUND 1.59% 1,000.00 1,041.84 8.16
U.S. GOVERNMENT MONEY MARKET FUND 1.18% 1,000.00 1,043.93 6.07
BANKING FUND 1.57% 1,000.00 1,041.91 8.09
BASIC MATERIALS FUND 1.57% 1,000.00 1,041.91 8.09
BIOTECHNOLOGY FUND 1.56% 1,000.00 1,041.97 8.03
CONSUMER PRODUCTS FUND 1.58% 1,000.00 1,041.89 8.11
ELECTRONICS FUND 1.56% 1,000.00 1,041.97 8.03
ENERGY FUND 1.57% 1,000.00 1,041.91 8.09
ENERGY SERVICES FUND 1.57% 1,000.00 1,041.91 8.09
FINANCIAL SERVICES FUND 1.57% 1,000.00 1,041.91 8.09
HEALTH CARE FUND 1.57% 1,000.00 1,041.91 8.09
INTERNET FUND 1.54% 1,000.00 1,042.07 7.93
LEISURE FUND 1.56% 1,000.00 1,041.97 8.03
PRECIOUS METALS FUND 1.41% 1,000.00 1,042.74 7.26
REAL ESTATE FUND 1.57% 1,000.00 1,041.91 8.09
RETAILING FUND 1.57% 1,000.00 1,041.91 8.09
TECHNOLOGY FUND 1.53% 1,000.00 1,042.12 7.88
TELECOMMUNICATIONS FUND 1.55% 1,000.00 1,042.02 7.98
TRANSPORTATION FUND 1.57% 1,000.00 1,041.91 8.09
UTILTITIES FUND 1.55% 1,000.00 1,042.02 7.98
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* 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 365.
+ ANNUALIZED.
See Notes to Financial Statements.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES
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NOVA FUND
OBJECTIVE: To provide investment results that match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 150% of the
performance of the S&P 500(R) Index.
Inception: May 7, 1997
The Fund's relation to the S&P 500 Index, which gained 10.89% in 2004 and
outperformed both the Dow Jones Industrial Average Index and Nasdaq 100 Index,
helped it post strong relative returns for the year. Energy, led by Exxon Mobil,
the industrials and consumer discretionary sector, was one of the leaders for
the year. The technology and health care sectors fared poorly. The Fund returned
14.62% for the year. For the year, the Fund achieved a daily correlation of more
than .99 to its benchmark of 150% of the daily price performance of the S&P 500
Index. The effects of compounding may cause the longer-term correlation of the
Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 7, 1997 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE NOVA FUND S&P 500 INDEX
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5/7/1997 10,000 10,000
6/30/1997 10,970 10,885
9/30/1997 11,950 11,700
12/31/1997 12,210 12,036
3/31/1998 14,190 13,715
6/30/1998 14,570 14,168
9/30/1998 12,070 12,759
12/31/1998 15,880 15,476
3/31/1999 16,600 16,247
6/30/1999 18,070 17,392
9/30/1999 16,182 16,306
12/31/1999 19,577 18,732
3/31/2000 19,893 19,162
6/30/2000 18,575 18,653
9/30/2000 18,051 18,472
12/31/2000 15,602 17,027
3/31/2001 12,592 15,008
6/30/2001 13,535 15,887
9/30/2001 10,424 13,555
12/31/2001 11,923 15,003
3/31/2002 11,882 15,044
6/30/2002 9,434 13,029
9/30/2002 6,909 10,778
12/31/2002 7,664 11,687
3/31/2003 7,131 11,319
6/30/2003 8,788 13,062
9/30/2003 9,084 13,407
12/31/2003 10,667 15,040
3/31/2004 10,978 15,294
6/30/2004 11,200 15,558
9/30/2004 10,762 15,267
12/31/2004 12,227 16,676
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
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SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/07/97)
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NOVA FUND 14.62% -8.98% 2.66%
S&P 500 INDEX 10.89% -2.30% 6.91%
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THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
NOVA FUND S&P 500 INDEX
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OTHER 7.1% 9.6%
FINANCIALS 15.2% 20.8%
INFORMATION TECHNOLOGY 12.8% 15.9%
HEALTH CARE 9.7% 12.4%
INDUSTRIALS 8.9% 11.8%
CONSUMER DISCRETIONARY 8.8% 11.9%
CONSUMER STAPLES 8.0% 10.6%
ENERGY 5.4% 7.0%
FUTURES CONTRACTS 74.1%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Exxon Mobil Corp. 2.5%
General Electric Co. 2.3%
Microsoft Corp. 1.7%
Pfizer, Inc. 1.6%
International Business Machines Corp. 1.4%
Johnson & Johnson 1.4%
Citigroup, Inc. 1.4%
Bank of America Corp. 1.3%
JPMorgan Chase & Co. 1.2%
Wal-Mart Stores, Inc. 1.2%
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Top Ten Total 16.0%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
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URSA FUND
OBJECTIVE: To provide investment results that will inversely correlate to the
performance of the S&P 500(R) Index.
Inception: June 9, 1997
The energy, industrials and consumer discretionary sectors led the S&P 500 Index
to a 10.89% gain last year, outperforming both the Dow Jones Industrial Average
Index and the Nasdaq 100 Index. McDonald's, Exxon Mobil, Eastman Kodak and
Johnson & Johnson all gained at least 25% last year, leading the list of
gainers. As a result, Rydex Ursa Fund, which strives to achieve results that are
opposite the S&P 500 Index, declined 10.05% during the period. It's important to
note that the Fund performed the way it was designed to perform. For the year
ended December 31, 2004, the Fund achieved a daily correlation of more than .99
to its benchmark of -100% of the daily price performance of the S&P 500 Index.
The effects of compounding may cause the longer-term correlation of the Fund to
its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: JUNE 9, 1997 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE URSA FUND S&P 500 INDEX
- ---- --------- -------------
6/9/1997 10,000 10,000
6/30/1997 9,786 10,266
9/30/1997 9,028 11,035
12/31/1997 8,622 11,352
3/31/1998 7,618 12,935
6/30/1998 7,425 13,362
9/30/1998 8,098 12,033
12/31/1998 6,731 14,596
3/31/1999 6,432 15,323
6/30/1999 5,994 16,403
9/30/1999 6,465 15,379
12/31/1999 5,717 17,667
3/31/2000 5,610 18,072
6/30/2000 5,856 17,592
9/30/2000 6,025 17,422
12/31/2000 6,635 16,059
3/31/2001 7,593 14,155
6/30/2001 7,234 14,983
9/30/2001 8,466 12,784
12/31/2001 7,629 14,150
3/31/2002 7,581 14,189
6/30/2002 8,697 12,288
9/30/2002 10,237 10,165
12/31/2002 9,280 11,023
3/31/2003 9,477 10,676
6/30/2003 8,177 12,319
9/30/2003 7,932 12,645
12/31/2003 7,086 14,184
3/31/2004 6,927 14,425
6/30/2004 6,792 14,673
9/30/2004 6,927 14,399
12/31/2004 6,363 15,728
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (06/09/97)
- --------------------------------------------------------------------------------
URSA FUND -10.05% 2.16% -5.80%
S&P 500 INDEX 10.89% -2.30% 6.17%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
URSA FUND S&P 500 INDEX
--------- -------------
OTHER 9.6%
FINANCIALS 20.8%
INFORMATION TECHNOLOGY 15.9%
HEALTH CARE 12.4%
CONSUMER DISCRETIONARY 11.9%
INDUSTRIALS 11.8%
CONSUMER STAPLES 10.6%
ENERGY 7.0%
FUTURES CONTRACTS SHORT SALES -99.9%
EQUITY INDEX SWAP AGREEMENTS 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
OTC FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for
over-the-counter securities. The Fund's current benchmark is the Nasdaq 100
Index(R).
Inception: May 7, 1997
Although corporate earnings and the nation's output slowed somewhat after a
torrid 2003, last year marked the second year of positive, albeit more subdued,
returns for the major market indices. Rydex OTC Fund gained 9.35%, which,
accounting for fees, was in line with the Nasdaq 100 Index's showing of 10.43%.
The Nasdaq 100 Index's positive performance was attained despite a pullback by
the technology and health care sectors. For the year ended December 31, 2004,
the Fund achieved a daily correlation of more than .99 to its benchmark of the
daily price performance of the Nasdaq 100 Index. The effects of compounding may
cause the longer-term correlation of the Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 7, 1997 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE OTC FUND NASDAQ 100 INDEX
- ---- -------- ----------------
5/7/1997 10,000 10,000
6/30/1997 10,400 10,528
9/30/1997 11,760 12,067
12/31/1997 10,650 10,897
3/31/1998 13,120 13,425
6/30/1998 14,360 14,708
9/30/1998 14,470 14,798
12/31/1998 19,570 20,192
3/31/1999 22,630 23,166
6/30/1999 24,630 25,260
9/30/1999 25,734 26,482
12/31/1999 39,399 40,779
3/31/2000 46,497 48,367
6/30/2000 39,685 41,394
9/30/2000 37,486 39,270
12/31/2000 24,354 25,754
3/31/2001 16,087 17,303
6/30/2001 18,700 20,128
9/30/2001 11,756 12,850
12/31/2001 15,788 17,344
3/31/2002 14,476 15,978
6/30/2002 10,401 11,563
9/30/2002 8,203 9,156
12/31/2002 9,654 10,826
3/31/2003 9,964 11,203
6/30/2003 11,670 13,216
9/30/2003 12,513 14,338
12/31/2003 14,039 16,144
3/31/2004 13,729 15,820
6/30/2004 14,455 16,680
9/30/2004 13,409 15,537
12/31/2004 15,351 17,829
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/07/97)
- --------------------------------------------------------------------------------
OTC FUND 9.35% -17.18% 5.76%
NASDAQ 100 INDEX 10.43% -15.25% 7.85%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE NASDAQ 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
OTC FUND NASDAQ 100 INDEX
-------- ----------------
OTHER 4.9% 5.7%
INFORMATION TECHNOLOGY 53.2% 58.4%
CONSUMER DISCRETIONARY 15.7% 16.8%
HEALTH CARE 11.2% 12.9%
INDUSTRIALS 4.5% 6.2%
FUTURES CONTRACTS 10.7% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Microsoft Corp. 8.0%
Qualcomm, Inc. 5.8%
eBay, Inc. 3.9%
Intel Corp. 3.9%
Cisco Systems, Inc. 3.5%
Dell, Inc. 3.2%
Nextel Communications, Inc. - Class A 2.8%
Oracle Corp. 2.5%
Starbucks Corp. 2.4%
Apple Computer, Inc. 2.4%
- ------------------------------------------------------
Top Ten Total 38.4%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ARKTOS FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark. The Fund's current benchmark is the inverse of the
performance of the Nasdaq 100 Index(R).
Inception: May 21, 2001
Although the Nasdaq 100 Index didn't match its strong performance of 2003, it
did gain a respectable 10.43% for the past year. The technology and health care
sectors, two major components of the index, struggled during the year, but
consumer discretionary stocks, another large part of the Nasdaq 100 Index,
performed well. The index's positive performance meant that Rydex Arktos Fund,
since it strives to achieve the opposite results of the index, performed as
expected declining 11.83% in 2004. For the year ended December 31, 2004, the
Fund achieved a daily correlation of more than .99 to its benchmark of -100% of
the daily price performance of the Nasdaq 100 Index. The effects of compounding
may cause the longer-term correlation of the Fund to its benchmark to
diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 21, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE ARKTOS FUND NASDAQ 100 INDEX
- ---- ----------- ----------------
5/21/2001 10,000 10,000
5/31/2001 11,420 8,769
6/30/2001 11,132 8,917
7/31/2001 11,996 8,203
8/31/2001 13,576 7,160
9/30/2001 16,868 5,692
10/31/2001 13,972 6,649
11/30/2001 11,852 7,776
12/31/2001 11,792 7,683
1/31/2002 11,888 7,552
2/28/2002 13,432 6,622
3/31/2002 12,436 7,078
4/30/2002 14,028 6,222
5/31/2002 14,472 5,887
6/30/2002 16,440 5,122
7/31/2002 17,404 4,687
8/31/2002 17,428 4,591
9/30/2002 19,478 4,056
10/31/2002 16,074 4,821
11/30/2002 14,033 5,438
12/31/2002 15,783 4,796
1/31/2003 15,589 4,789
2/28/2003 15,092 4,919
3/31/2003 14,797 4,963
4/30/2003 13,555 5,389
5/31/2003 12,460 5,836
6/30/2003 12,387 5,855
7/31/2003 11,603 6,221
8/31/2003 11,013 6,534
9/30/2003 11,264 6,352
10/31/2003 10,324 6,901
11/30/2003 10,226 6,939
12/31/2003 9,885 7,152
1/31/2004 9,688 7,274
2/29/2004 9,820 7,164
3/31/2004 10,000 7,008
4/30/2004 10,214 6,827
5/31/2004 9,738 7,143
6/30/2004 9,401 7,389
7/31/2004 10,152 6,823
8/31/2004 10,361 6,668
9/30/2004 10,025 6,883
10/31/2004 9,504 7,243
11/30/2004 8,983 7,656
12/31/2004 8,716 7,898
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/21/01)
- --------------------------------------------------------------------------------
ARKTOS FUND -11.83% -3.73%
NASDAQ 100 INDEX 10.43% -6.32%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE NASDAQ 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
ARKTOS FUND NASDAQ 100 INDEX
----------- ----------------
OTHER 5.7%
INFORMATION TECHNOLOGY 58.4%
CONSUMER DISCRETIONARY 16.8%
HEALTH CARE 12.9%
INDUSTRIALS 6.2%
FUTURES CONTRACTS SHORT SALES -14.3%
EQUITY INDEX SWAP AGREEMENTS -85.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
TITAN 500 FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 200% of the
performance of the S&P 500(R) Index.
Inception: October 1, 2001
Employing a long strategy to the S&P 500 Index, as Rydex Titan 500 Fund does,
worked in the Fund's favor during 2004. The Index rallied during the latter half
of the year to post a 10.89% gain. The energy sector generally benefited from
rising energy costs, especially of crude oil, to easily lead sector performance.
Leverage also added to performance. The Fund returned 16.90% during the period.
For the year ended December 31, 2004, the Fund achieved a daily correlation of
more than .99 to its benchmark of 200% the daily price performance of the S&P
500 Index. The effects of compounding may cause the longer-term correlation of
the Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE TITAN 500 FUND S&P 500 INDEX
- ---- -------------- -------------
10/1/2001 10,000 10,000
10/31/2001 10,356 10,213
11/30/2001 11,824 10,997
12/31/2001 11,948 11,093
1/31/2002 11,496 10,931
2/28/2002 11,048 10,721
3/31/2002 11,724 11,124
4/30/2002 10,276 10,449
5/31/2002 10,020 10,372
6/30/2002 8,432 9,633
7/31/2002 7,084 8,883
8/31/2002 7,092 8,941
9/30/2002 5,577 7,969
10/31/2002 6,544 8,671
11/30/2002 7,317 9,181
12/31/2002 6,451 8,642
1/31/2003 6,042 8,415
2/28/2003 5,822 8,289
3/31/2003 5,866 8,369
4/30/2003 6,812 9,059
5/31/2003 7,558 9,536
6/30/2003 7,698 9,658
7/31/2003 7,923 9,828
8/31/2003 8,236 10,020
9/30/2003 8,007 9,913
10/31/2003 8,921 10,474
11/30/2003 9,142 10,566
12/31/2003 9,996 11,120
1/31/2004 10,357 11,325
2/29/2004 10,616 11,482
3/31/2004 10,241 11,309
4/30/2004 9,885 11,131
5/31/2004 10,126 11,284
6/30/2004 10,464 11,503
7/31/2004 9,741 11,123
8/31/2004 9,783 11,168
9/30/2004 9,936 11,289
10/31/2004 10,188 11,461
11/30/2004 10,984 11,925
12/31/2004 11,685 12,331
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
TITAN 500 FUND 16.90% 4.91%
S&P 500 INDEX 10.89% 6.66%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
TITAN 500 FUND S&P 500 Indexr
-------------- --------------
OTHER 6.2% 9.6%
FINANCIALS 13.7% 20.8%
INFORMATION TECHNOLOGY 10.7% 15.9%
HEALTH CARE 8.4% 12.4%
CONSUMER DISCRETIONARY 7.9% 11.9%
INDUSTRIALS 7.8% 11.8%
CONSUMER STAPLES 7.0% 10.6%
ENERGY 4.8% 7.0%
FUTURES CONTRACTS 133.7%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
General Electric Co. 2.3%
Exxon Mobil Corp. 1.9%
Microsoft Corp. 1.7%
Citigroup, Inc. 1.5%
Wal-Mart Stores, Inc. 1.3%
Pfizer, Inc. 1.2%
Bank of America Corp. 1.1%
Johnson & Johnson 1.1%
American International Group, Inc. 1.0%
International Business Machines Corp. 1.0%
- ------------------------------------------------------
Top Ten Total 14.1%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 200% of the
performance of the Nasdaq 100 Index(R).
Inception: October 1, 2001
The Nasdaq 100 Index struggled during the first eight months of the year, but
rebounded during the remainder of the year to post a positive annual return.
Technology and health care, two dominant sectors in the index, lagged other
groups during the year. Stocks in the consumer discretionary sector were among
the stronger performers in the index. The Fund rallied with the Nasdaq 100 Index
at year-end to post a gain of 14.21% for the year. For the year ended December
31, 2004, the Fund achieved a daily correlation of more than .99 to its
benchmark of 200% of the daily price performance of the Nasdaq 100 Index. The
effects of compounding may cause the longer-term correlation of the Fund to its
benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE VELOCITY 100 FUND NASDAQ 100 INDEX
- ---- ----------------- ----------------
10/1/2001 10,000 10,000
10/31/2001 12,912 11,854
11/30/2001 17,148 13,863
12/31/2001 15,588 13,698
1/31/2002 14,860 13,465
2/28/2002 11,212 11,806
3/31/2002 12,532 12,619
4/30/2002 9,540 11,093
5/31/2002 8,340 10,496
6/30/2002 6,208 9,133
7/31/2002 5,040 8,357
8/31/2002 4,708 8,186
9/30/2002 3,584 7,231
10/31/2002 4,984 8,595
11/30/2002 6,208 9,694
12/31/2002 4,760 8,550
1/31/2003 4,676 8,539
2/28/2003 4,896 8,771
3/31/2003 4,940 8,848
4/30/2003 5,764 9,607
5/31/2003 6,680 10,405
6/30/2003 6,676 10,438
7/31/2003 7,432 11,092
8/31/2003 8,140 11,650
9/30/2003 7,612 11,324
10/31/2003 8,920 12,303
11/30/2003 8,976 12,371
12/31/2003 9,455 12,750
1/31/2004 9,738 12,969
2/29/2004 9,420 12,772
3/31/2004 8,946 12,494
4/30/2004 8,459 12,172
5/31/2004 9,233 12,736
6/30/2004 9,803 13,174
7/31/2004 8,280 12,164
8/31/2004 7,862 11,888
9/30/2004 8,329 12,271
10/31/2004 9,166 12,914
11/30/2004 10,200 13,650
12/31/2004 10,798 14,081
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
VELOCITY 100 FUND 14.21% 2.39%
NASDAQ 100 INDEX 10.43% 11.11%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE NASDAQ 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
VELOCITY 100 FUND NASDAQ 100 INDEX
----------------- ----------------
EQUITY INDEX SWAP AGREEMENTS 93.2%
FUTURES CONTRACTS 32.3%
HEALTH CARE 9.1% 12.9%
CONSUMER DISCRETIONARY 14.8% 16.8%
INFORMATION TECHNOLOGY 42.7% 58.4%
OTHER 7.8% 5.7%
INDUSTRIALS 6.2%
"HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)" EXCLUDES ANY
TEMPORARY CASH INVESTMENTS.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Microsoft Corp. 5.5%
Qualcomm, Inc. 4.6%
eBay, Inc. 3.2%
Intel Corp. 2.9%
Cisco Systems, Inc. 2.5%
Nextel Communications, Inc. - Class A 2.3%
Dell, Inc. 2.1%
Amgen, Inc. 2.1%
Apple Computer, Inc. 2.0%
Starbucks Corp. 1.9%
- ------------------------------------------------------
Top Ten Total 29.1%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MEDIUS FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark for mid-cap securities. The Fund's current benchmark is the
S&P MidCap 400(R) Index.
Inception: October 1, 2001
In the four previous years, mid-cap stocks outperformed large-cap stocks, and
2004 provided more of the same. The S&P MidCap 400 Index gained 16.48% in 2004,
easily outdistancing larger-cap indices such as the S&P 500 Index. Strong
earnings growth and a steadily growing economy contributed to mid-caps'
performance. Rydex Medius Fund returned 22.14% for the year. For the year ended
December 31, 2004, the Fund achieved a daily correlation of more than .99 to its
benchmark of 150% of the daily price performance of the S&P MidCap 400 Index.
The effects of compounding may cause the longer-term correlation of the Fund to
its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE MEDIUS FUND S&P 400 INDEX
- ---- ----------- -------------
10/1/2001 10,000 10,000
10/31/2001 10,848 10,633
11/30/2001 11,920 11,424
12/31/2001 12,667 12,015
1/31/2002 12,569 11,952
2/28/2002 12,618 11,967
3/31/2002 13,876 12,822
4/30/2002 13,860 12,762
5/31/2002 13,519 12,547
6/30/2002 12,017 11,629
7/31/2002 10,374 10,502
8/31/2002 10,297 10,555
9/30/2002 8,973 9,705
10/31/2002 9,512 10,125
11/30/2002 10,315 10,711
12/31/2002 9,571 10,271
1/31/2003 9,157 9,971
2/28/2003 8,806 9,733
3/31/2003 8,823 9,815
4/30/2003 9,749 10,528
5/31/2003 11,074 11,401
6/30/2003 11,241 11,546
7/31/2003 11,769 11,956
8/31/2003 12,539 12,498
9/30/2003 12,297 12,306
10/31/2003 13,659 13,237
11/30/2003 14,316 13,698
12/31/2003 14,589 13,929
1/31/2004 15,049 14,231
2/29/2004 15,551 14,573
3/31/2004 15,651 14,635
4/30/2004 14,831 14,155
5/31/2004 15,197 14,448
6/30/2004 15,704 14,777
7/31/2004 14,530 14,087
8/31/2004 14,418 14,051
9/30/2004 15,063 14,467
10/31/2004 15,466 14,698
11/30/2004 16,865 15,573
12/31/2004 17,820 16,225
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
MEDIUS FUND 22.14% 19.46%
S&P MIDCAP 400 INDEX 16.48% 16.06%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
MEDIUS FUND S&P MIDCAP 400 INDEX
----------- --------------------
OTHER 8.1% 5.2%
CONSUMER DISCRETIONARY 14.6% 19.4%
FINANCIALS 14.8% 18.7%
INFORMATION TECHNOLOGY 11.5% 14.4%
INDUSTRIALS 10.0% 12.8%
HEALTH CARE 8.4% 10.6%
UTILITIES 5.3% 6.9%
ENERGY 5.1% 6.7%
MATERIALS 0.0% 5.3%
FUTURES CONTRACTS 25.5% 0.0%
EQUITY INDEX SWAP AGREEMENTS 43.1% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Washington Post - Class B 1.1%
Legg Mason, Inc. 1.1%
Lyondell Chemical Co. 1.0%
Weatherford International Ltd. 1.0%
Banknorth Group, Inc. 0.9%
Toll Brothers, Inc. 0.9%
Murphy Oil Corp. 0.9%
Barr Pharmaceuticals, Inc. 0.9%
New York Community Bancorp, Inc. 0.9%
Tyson Foods, Inc. - Class A 0.9%
- ------------------------------------------------------
Top Ten Total 9.6%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark. The Fund's current benchmark is the inverse of the
performance of the S&P MidCap 400 Index.
Inception: May 3, 2004
Mid-caps performed well during the period. Rydex Inverse Mid-Cap Fund, which
seeks to provide investment results that inversely correspond to that of the S&P
MidCap 400 Index, declined--which is what it is designed to do when the value of
the underlying index increases. The Fund's benchmark returned 13.58% during the
period, while Rydex Inverse Mid-Cap Fund returned -11.94%. For the year ended
December 31, 2004, the Fund achieved a daily correlation of more than 0.99 to
its benchmark of -100% the daily price performance of the S&P MidCap 400 Index.
The effects of compounding may cause the longer-term correlation of the Fund to
its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE INVERSE MID-CAP FUND S&P MIDCAP 400 INDEX
- ---- -------------------- --------------------
5/3/2004 10,000 10,000
5/4/2004 9,988 10,024
5/5/2004 9,922 10,074
5/6/2004 10,042 9,955
5/7/2004 10,258 9,742
5/8/2004 10,258 9,742
5/9/2004 10,258 9,742
5/10/2004 10,436 9,577
5/11/2004 10,282 9,703
5/12/2004 10,308 9,677
5/13/2004 10,298 9,690
5/14/2004 10,338 9,660
5/15/2004 10,338 9,660
5/16/2004 10,338 9,660
5/17/2004 10,450 9,547
5/18/2004 10,356 9,634
5/19/2004 10,380 9,608
5/20/2004 10,378 9,612
5/21/2004 10,320 9,660
5/22/2004 10,320 9,660
5/23/2004 10,320 9,660
5/24/2004 10,212 9,760
5/25/2004 10,018 9,948
5/26/2004 9,962 10,008
5/27/2004 9,916 10,063
5/28/2004 9,866 10,114
5/29/2004 9,866 10,114
5/30/2004 9,866 10,114
5/31/2004 9,866 10,114
6/1/2004 9,822 10,146
6/2/2004 9,838 10,146
6/3/2004 9,972 10,004
6/4/2004 9,894 10,075
6/5/2004 9,894 10,075
6/6/2004 9,894 10,075
6/7/2004 9,738 10,246
6/8/2004 9,746 10,228
6/9/2004 9,874 10,103
6/10/2004 9,830 10,129
6/11/2004 9,830 10,129
6/12/2004 9,830 10,129
6/13/2004 9,830 10,129
6/14/2004 9,970 9,986
6/15/2004 9,830 10,111
6/16/2004 9,832 10,129
6/17/2004 9,828 10,122
6/18/2004 9,864 10,123
6/19/2004 9,864 10,123
6/20/2004 9,864 10,123
6/21/2004 9,864 10,096
6/22/2004 9,798 10,153
6/23/2004 9,712 10,244
6/24/2004 9,740 10,228
6/25/2004 9,686 10,274
6/26/2004 9,686 10,274
6/27/2004 9,686 10,274
6/28/2004 9,746 10,221
6/29/2004 9,714 10,252
6/30/2004 9,636 10,344
7/1/2004 9,760 10,215
7/2/2004 9,768 10,193
7/3/2004 9,768 10,193
7/4/2004 9,768 10,193
7/5/2004 9,768 10,193
7/6/2004 9,898 10,053
7/7/2004 9,880 10,083
7/8/2004 10,002 9,960
7/9/2004 9,936 10,009
7/10/2004 9,936 10,009
7/11/2004 9,936 10,009
7/12/2004 9,988 9,983
7/13/2004 9,978 9,993
7/14/2004 10,012 9,960
7/15/2004 9,954 10,012
7/16/2004 10,012 9,942
7/17/2004 10,012 9,942
7/18/2004 10,012 9,942
7/19/2004 10,020 9,952
7/20/2004 9,888 10,070
7/21/2004 10,096 9,864
7/22/2004 10,104 9,845
7/23/2004 10,240 9,730
7/24/2004 10,240 9,730
7/25/2004 10,240 9,730
7/26/2004 10,332 9,646
7/27/2004 10,186 9,776
7/28/2004 10,240 9,726
7/29/2004 10,094 9,853
7/30/2004 10,102 9,861
7/31/2004 10,102 9,861
8/1/2004 10,102 9,861
8/2/2004 10,076 9,877
8/3/2004 10,204 9,770
8/4/2004 10,234 9,737
8/5/2004 10,416 9,554
8/6/2004 10,600 9,399
8/7/2004 10,600 9,399
8/8/2004 10,600 9,399
8/9/2004 10,588 9,414
8/10/2004 10,408 9,567
8/11/2004 10,480 9,507
8/12/2004 10,630 9,375
8/13/2004 10,630 9,368
8/14/2004 10,630 9,368
8/15/2004 10,630 9,368
8/16/2004 10,456 9,523
8/17/2004 10,404 9,567
8/18/2004 10,252 9,707
8/19/2004 10,330 9,642
8/20/2004 10,190 9,770
8/21/2004 10,190 9,770
8/22/2004 10,190 9,770
8/23/2004 10,246 9,716
8/24/2004 10,234 9,731
8/25/2004 10,128 9,822
8/26/2004 10,136 9,826
8/27/2004 10,082 9,874
8/28/2004 10,082 9,874
8/29/2004 10,082 9,874
8/30/2004 10,200 9,761
8/31/2004 10,122 9,836
9/1/2004 10,042 9,917
9/2/2004 9,952 10,006
9/3/2004 10,002 9,959
9/4/2004 10,002 9,959
9/5/2004 10,002 9,959
9/6/2004 10,002 9,959
9/7/2004 9,928 10,034
9/8/2004 10,024 9,940
9/9/2004 9,950 10,010
9/10/2004 9,910 10,051
9/11/2004 9,910 10,051
9/12/2004 9,910 10,051
9/13/2004 9,848 10,114
9/14/2004 9,870 10,090
9/15/2004 9,926 10,036
9/16/2004 9,858 10,106
9/17/2004 9,864 10,105
9/18/2004 9,864 10,105
9/19/2004 9,864 10,105
9/20/2004 9,906 10,059
9/21/2004 9,822 10,143
9/22/2004 9,946 10,020
9/23/2004 9,970 9,989
9/24/2004 9,926 10,044
9/25/2004 9,926 10,044
9/26/2004 9,926 10,044
9/27/2004 10,014 9,946
9/28/2004 9,946 10,015
9/29/2004 9,906 10,055
9/30/2004 9,842 10,127
10/1/2004 9,694 10,274
10/2/2004 9,694 10,274
10/3/2004 9,694 10,274
10/4/2004 9,666 10,306
10/5/2004 9,694 10,280
10/6/2004 9,632 10,346
10/7/2004 9,752 10,217
10/8/2004 9,824 10,146
10/9/2004 9,824 10,146
10/10/2004 9,824 10,146
10/11/2004 9,812 10,148
10/12/2004 9,854 10,117
10/13/2004 9,934 10,032
10/14/2004 10,002 9,957
10/15/2004 9,962 9,996
10/16/2004 9,962 9,996
10/17/2004 9,962 9,996
10/18/2004 9,914 10,045
10/19/2004 9,986 9,972
10/20/2004 9,938 10,017
10/21/2004 9,848 10,113
10/22/2004 9,940 10,022
10/23/2004 9,940 10,022
10/24/2004 9,940 10,022
10/25/2004 9,910 10,051
10/26/2004 9,826 10,121
10/27/2004 9,690 10,277
10/28/2004 9,704 10,266
10/29/2004 9,688 10,289
10/30/2004 9,688 10,289
10/31/2004 9,688 10,289
11/1/2004 9,688 10,290
11/2/2004 9,700 10,277
11/3/2004 9,564 10,417
11/4/2004 9,428 10,567
11/5/2004 9,404 10,595
11/6/2004 9,404 10,595
11/7/2004 9,404 10,595
11/8/2004 9,436 10,558
11/9/2004 9,406 10,595
11/10/2004 9,384 10,622
11/11/2004 9,296 10,724
11/12/2004 9,192 10,845
11/13/2004 9,192 10,845
11/14/2004 9,192 10,845
11/15/2004 9,200 10,836
11/16/2004 9,258 10,771
11/17/2004 9,180 10,860
11/18/2004 9,190 10,853
11/19/2004 9,298 10,726
11/20/2004 9,298 10,726
11/21/2004 9,298 10,726
11/22/2004 9,224 10,808
11/23/2004 9,188 10,852
11/24/2004 9,108 10,946
11/25/2004 9,108 10,946
11/26/2004 9,106 10,955
11/27/2004 9,106 10,955
11/28/2004 9,106 10,955
11/29/2004 9,128 10,932
11/30/2004 9,152 10,902
12/1/2004 9,032 11,046
12/2/2004 9,070 11,002
12/3/2004 9,050 11,032
12/4/2004 9,050 11,032
12/5/2004 9,050 11,032
12/6/2004 9,076 11,000
12/7/2004 9,200 10,846
12/8/2004 9,142 10,913
12/9/2004 9,108 10,961
12/10/2004 9,098 10,975
12/11/2004 9,098 10,975
12/12/2004 9,098 10,975
12/13/2004 9,032 11,053
12/14/2004 8,946 11,156
12/15/2004 8,896 11,226
12/16/2004 8,950 11,158
12/17/2004 8,958 11,154
12/18/2004 8,958 11,154
12/19/2004 8,958 11,154
12/20/2004 8,990 11,103
12/21/2004 8,900 11,221
12/22/2004 8,866 11,258
12/23/2004 8,860 11,271
12/24/2004 8,860 11,271
12/25/2004 8,860 11,271
12/26/2004 8,860 11,271
12/27/2004 8,924 11,203
12/28/2004 8,816 11,341
12/29/2004 8,800 11,351
12/30/2004 8,794 11,378
12/31/2004 8,806 11,358
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND -11.94%
S&P MIDCAP 400 INDEX 13.58%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
INVERSE MID-CAP FUND S&P MIDCAP 400 INDEX
-------------------- --------------------
OTHER 5.2%
CONSUMER DISCRETIONARY 19.4%
FINANCIALS 18.7%
INFORMATION TECHNOLOGY 14.4%
INDUSTRIALS 12.8%
HEALTH CARE 10.6%
UTILITIES 6.9%
ENERGY 6.7%
MATERIALS 5.3%
FUTURES CONTRACTS SHORT SALES -55.4%
EQUITY INDEX SWAP AGREEMENTS -46.1%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MEKROS FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark for small-cap securities. The Fund's current benchmark is the
Russell 2000 Index(R).
Inception: October 1, 2001
Small-cap stocks outperformed both mid-cap and large-cap indices in 2004, riding
the performance of the energy and materials sectors. The Russell 2000 Index,
which returned 18.33% for the year, outperformed both mid-cap and large-cap
indices, besting the S&P 500 Index, in eight of the 12 months. The Index also
bested the performance of the S&P 500 Index across all sectors. Top performers
in the Fund included Travelzoo (997%), Cheniere Energy (444%), WR Grace (430%)
and Jupitermedia (423%). Rydex Mekros Fund returned 25.20% on the year. For the
year ended December 31, 2004, the Fund achieved a daily correlation of more than
..99 to its benchmark of 150% of the daily price performance of the Russell 2000
Index. The effects of compounding may cause the longer-term correlation of the
Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE MEKROS FUND RUSSELL 2000 INDEX
- ---- ----------- ------------------
10/1/2001 10,000 10,000
10/31/2001 11,036 10,779
11/30/2001 12,112 11,613
12/31/2001 12,897 12,330
1/31/2002 12,711 12,202
2/28/2002 12,214 11,868
3/31/2002 13,709 12,821
4/30/2002 14,214 12,938
5/31/2002 13,067 12,364
6/30/2002 12,068 11,750
7/31/2002 9,482 9,976
8/31/2002 9,433 9,950
9/30/2002 8,387 9,236
10/31/2002 8,284 9,532
11/30/2002 9,079 10,382
12/31/2002 8,325 9,804
1/31/2003 7,862 9,533
2/28/2003 7,419 9,245
3/31/2003 7,464 9,364
4/30/2003 8,565 10,252
5/31/2003 9,977 11,352
6/30/2003 10,072 11,567
7/31/2003 10,950 12,280
8/31/2003 11,650 12,843
9/30/2003 11,240 12,606
10/31/2003 12,681 13,665
11/30/2003 13,281 14,150
12/31/2003 13,677 14,437
1/31/2004 14,582 15,064
2/29/2004 14,784 15,199
3/31/2004 14,922 15,341
4/30/2004 13,658 14,559
5/31/2004 13,948 14,791
6/30/2004 14,909 15,413
7/31/2004 13,401 14,376
8/31/2004 13,263 14,302
9/30/2004 14,172 14,973
10/31/2004 14,523 15,268
11/30/2004 16,395 16,592
12/31/2004 17,123 17,083
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
MEKROS FUND 25.20% 18.00%
RUSSELL 2000 INDEX 18.33% 17.92%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 2000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
MEKROS FUND RUSSELL 2000 INDEX
----------- ------------------
OTHER 10.4% 6.2%
FINANCIALS 12.8%
INFORMATION TECHNOLOGY 10.7% 24.2%
CONSUMER DISCRETIONARY 8.7% 10.4%
INDUSTRIALS 8.3% 15.8%
HEALTH CARE 7.4% 17.6%
CONSUMER STAPLES 18.5%
ENERGY 7.3%
FUTURES CONTRACTS 46.5%
EQUITY INDEX SWAP AGREEMENTS 45.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Taser International, Inc. 0.3%
Goodyear Tire & Rubber Co. 0.3%
F5 Networks, Inc. 0.3%
First Bancorp/Puerto Rico 0.3%
Intuitive Surgical, Inc. 0.3%
Allegheny Technologies, Inc. 0.3%
East-West Bancorp, Inc. 0.3%
Brocade Communications Systems, Inc. 0.3%
CACI International, Inc. - Class A 0.3%
Micros Systems, Inc. 0.3%
- ------------------------------------------------------
Top Ten Total 3.0%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark. The Fund's current benchmark is inverse of the performance
of the Russell 2000 Index(R).
Inception: May 3, 2004
Small-caps were a bright spot during the reporting period. Because Rydex Inverse
Small-Cap Fund seeks to provide investment results that inversely correspond to
the small-cap Russell 2000 Index, the Fund had a negative return. The Fund
performed the way it was designed to perform, returning -14.34% versus the
Russell 2000 Index, which returned 16.15%. For the year ended December 31, 2004,
the Fund achieved a daily correlation of more than .99 to its benchmark of -100%
the daily price performance of the Russell 2000 Index. The effects of
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE INVERSE SMALL-CAP FUND RUSSELL 2000 INDEX
- ---- ---------------------- ------------------
5/3/2004 10,000 10,000
5/4/2004 9,936 10,073
5/5/2004 9,928 10,081
5/6/2004 10,072 9,959
5/7/2004 10,368 9,702
5/8/2004 10,368 9,702
5/9/2004 10,368 9,702
5/10/2004 10,572 9,514
5/11/2004 10,344 9,704
5/12/2004 10,338 9,711
5/13/2004 10,404 9,680
5/14/2004 10,480 9,619
5/15/2004 10,480 9,619
5/16/2004 10,480 9,619
5/17/2004 10,616 9,470
5/18/2004 10,468 9,598
5/19/2004 10,524 9,569
5/20/2004 10,514 9,567
5/21/2004 10,406 9,656
5/22/2004 10,406 9,656
5/23/2004 10,406 9,656
5/24/2004 10,278 9,761
5/25/2004 10,040 10,003
5/26/2004 9,982 10,046
5/27/2004 9,980 10,061
5/28/2004 9,972 10,056
5/29/2004 9,972 10,056
5/30/2004 9,972 10,056
5/31/2004 9,972 10,056
6/1/2004 9,876 10,131
6/2/2004 9,888 10,150
6/3/2004 10,070 9,954
6/4/2004 9,974 10,048
6/5/2004 9,974 10,048
6/6/2004 9,974 10,048
6/7/2004 9,778 10,245
6/8/2004 9,784 10,228
6/9/2004 9,950 10,064
6/10/2004 9,928 10,074
6/11/2004 9,928 10,074
6/12/2004 9,928 10,074
6/13/2004 9,928 10,074
6/14/2004 10,128 9,873
6/15/2004 9,920 10,055
6/16/2004 9,898 10,093
6/17/2004 9,900 10,085
6/18/2004 9,890 10,102
6/19/2004 9,890 10,102
6/20/2004 9,890 10,102
6/21/2004 9,914 10,070
6/22/2004 9,848 10,126
6/23/2004 9,702 10,273
6/24/2004 9,738 10,254
6/25/2004 9,574 10,407
6/26/2004 9,574 10,407
6/27/2004 9,574 10,407
6/28/2004 9,634 10,347
6/29/2004 9,570 10,414
6/30/2004 9,528 10,479
7/1/2004 9,666 10,319
7/2/2004 9,674 10,325
7/3/2004 9,674 10,325
7/4/2004 9,674 10,325
7/5/2004 9,674 10,325
7/6/2004 9,830 10,142
7/7/2004 9,842 10,136
7/8/2004 10,046 9,936
7/9/2004 9,984 9,990
7/10/2004 9,984 9,990
7/11/2004 9,984 9,990
7/12/2004 10,022 9,963
7/13/2004 10,010 9,972
7/14/2004 10,064 9,920
7/15/2004 10,028 9,963
7/16/2004 10,154 9,845
7/17/2004 10,154 9,845
7/18/2004 10,154 9,845
7/19/2004 10,142 9,832
7/20/2004 9,974 9,999
7/21/2004 10,264 9,723
7/22/2004 10,296 9,687
7/23/2004 10,444 9,557
7/24/2004 10,444 9,557
7/25/2004 10,444 9,557
7/26/2004 10,554 9,456
7/27/2004 10,326 9,653
7/28/2004 10,386 9,594
7/29/2004 10,220 9,748
7/30/2004 10,210 9,774
7/31/2004 10,210 9,774
8/1/2004 10,210 9,774
8/2/2004 10,190 9,786
8/3/2004 10,348 9,639
8/4/2004 10,364 9,622
8/5/2004 10,570 9,440
8/6/2004 10,818 9,215
8/7/2004 10,818 9,215
8/8/2004 10,818 9,215
8/9/2004 10,848 9,193
8/10/2004 10,600 9,397
8/11/2004 10,670 9,341
8/12/2004 10,856 9,172
8/13/2004 10,848 9,178
8/14/2004 10,848 9,178
8/15/2004 10,848 9,178
8/16/2004 10,630 9,367
8/17/2004 10,590 9,402
8/18/2004 10,356 9,608
8/19/2004 10,438 9,535
8/20/2004 10,244 9,721
8/21/2004 10,244 9,721
8/22/2004 10,244 9,721
8/23/2004 10,316 9,642
8/24/2004 10,292 9,670
8/25/2004 10,196 9,761
8/26/2004 10,252 9,710
8/27/2004 10,166 9,789
8/28/2004 10,166 9,789
8/29/2004 10,166 9,789
8/30/2004 10,296 9,664
8/31/2004 10,230 9,724
9/1/2004 10,148 9,805
9/2/2004 10,012 9,935
9/3/2004 10,080 9,872
9/4/2004 10,080 9,872
9/5/2004 10,080 9,872
9/6/2004 10,080 9,872
9/7/2004 9,954 9,991
9/8/2004 10,044 9,901
9/9/2004 9,890 10,050
9/10/2004 9,826 10,116
9/11/2004 9,826 10,116
9/12/2004 9,826 10,116
9/13/2004 9,770 10,174
9/14/2004 9,806 10,137
9/15/2004 9,852 10,094
9/16/2004 9,748 10,201
9/17/2004 9,772 10,177
9/18/2004 9,772 10,177
9/19/2004 9,772 10,177
9/20/2004 9,808 10,134
9/21/2004 9,704 10,244
9/22/2004 9,888 10,049
9/23/2004 9,888 10,048
9/24/2004 9,886 10,051
9/25/2004 9,886 10,051
9/26/2004 9,886 10,051
9/27/2004 10,018 9,915
9/28/2004 9,884 10,050
9/29/2004 9,790 10,147
9/30/2004 9,760 10,180
10/1/2004 9,554 10,395
10/2/2004 9,554 10,395
10/3/2004 9,554 10,395
10/4/2004 9,486 10,468
10/5/2004 9,514 10,437
10/6/2004 9,424 10,533
10/7/2004 9,590 10,355
10/8/2004 9,706 10,232
10/9/2004 9,706 10,232
10/10/2004 9,706 10,232
10/11/2004 9,672 10,266
10/12/2004 9,688 10,251
10/13/2004 9,812 10,122
10/14/2004 9,892 10,041
10/15/2004 9,808 10,122
10/16/2004 9,808 10,122
10/17/2004 9,808 10,122
10/18/2004 9,762 10,168
10/19/2004 9,864 10,073
10/20/2004 9,806 10,135
10/21/2004 9,692 10,251
10/22/2004 9,846 10,093
10/23/2004 9,846 10,093
10/24/2004 9,846 10,093
10/25/2004 9,776 10,162
10/26/2004 9,686 10,268
10/27/2004 9,520 10,440
10/28/2004 9,546 10,413
10/29/2004 9,576 10,381
10/30/2004 9,576 10,381
10/31/2004 9,576 10,381
11/1/2004 9,524 10,438
11/2/2004 9,554 10,410
11/3/2004 9,390 10,587
11/4/2004 9,280 10,709
11/5/2004 9,242 10,747
11/6/2004 9,242 10,747
11/7/2004 9,242 10,747
11/8/2004 9,284 10,709
11/9/2004 9,212 10,791
11/10/2004 9,164 10,846
11/11/2004 9,064 10,965
11/12/2004 8,984 11,066
11/13/2004 8,984 11,066
11/14/2004 8,984 11,066
11/15/2004 8,958 11,100
11/16/2004 9,038 10,994
11/17/2004 8,964 11,084
11/18/2004 8,980 11,068
11/19/2004 9,102 10,915
11/20/2004 9,102 10,915
11/21/2004 9,102 10,915
11/22/2004 8,980 11,059
11/23/2004 8,942 11,113
11/24/2004 8,862 11,202
11/25/2004 8,862 11,202
11/26/2004 8,846 11,233
11/27/2004 8,846 11,233
11/28/2004 8,846 11,233
11/29/2004 8,802 11,293
11/30/2004 8,810 11,281
12/1/2004 8,666 11,458
12/2/2004 8,690 11,437
12/3/2004 8,694 11,432
12/4/2004 8,694 11,432
12/5/2004 8,694 11,432
12/6/2004 8,738 11,376
12/7/2004 8,922 11,135
12/8/2004 8,838 11,236
12/9/2004 8,868 11,202
12/10/2004 8,826 11,256
12/11/2004 8,826 11,256
12/12/2004 8,826 11,256
12/13/2004 8,744 11,361
12/14/2004 8,670 11,460
12/15/2004 8,604 11,551
12/16/2004 8,688 11,438
12/17/2004 8,700 11,435
12/18/2004 8,700 11,435
12/19/2004 8,700 11,435
12/20/2004 8,748 11,364
12/21/2004 8,634 11,511
12/22/2004 8,606 11,552
12/23/2004 8,596 11,568
12/24/2004 8,596 11,568
12/25/2004 8,596 11,568
12/26/2004 8,596 11,568
12/27/2004 8,666 11,478
12/28/2004 8,528 11,661
12/29/2004 8,540 11,645
12/30/2004 8,544 11,641
12/31/2004 8,564 11,615
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND -14.34%
RUSSELL 2000 INDEX 16.15%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 2000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
INVERSE SMALL-CAP FUND RUSSELL 2000 INDEX
---------------------- ------------------
OTHER 6.2%
INFORMATION TECHNOLOGY 24.2%
CONSUMER STAPLES 18.5%
HEALTH CARE 17.6%
INDUSTRIALS 15.8%
CONSUMER DISCRETIONARY 10.4%
ENERGY 7.3%
FUTURES CONTRACTS SHORT SALES -15.0%
EQUITY INDEX SWAP AGREEMENTS -84.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for U.S.
Government securities. The Fund's current benchmark is 120% of the price
movement of the Lehman Long Treasury Bond Index.
Inception: August 18, 1997
The year began with the specter of rising interest rates, an event that didn't
take place until late June, when the Federal Reserve initiated the first of its
five Fed fund rate hikes of 25 basis points, bringing the rate up to 2.25%. The
Long Bond began the year with a 5.19% yield and ended the year at 4.82%,
bouncing around for much of the year. Rydex U.S. Government Bond Fund, which
invests in the current 30-year Treasury Bond and Treasury Bond futures, returned
8.42%. For the year ended December 31, 2004, the Fund achieved a daily
correlation of more than .99 to its benchmark of 120% of the daily price
performance of the current U.S. Treasury Long Bond. The effects of compounding
may cause the longer-term correlation of the Fund to its benchmark to
diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: AUGUST 18, 1997 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT LEHMAN LONG U.S. TREASURY
DATE BOND FUND TREASURY BOND INDEX LONG BOND INDEX
- ---- --------- ------------------- ---------------
8/18/1997 10,000 10,000 10,000
9/30/1997 10,177 10,202 10,147
12/31/1997 10,985 10,865 10,749
3/31/1998 11,022 11,029 10,733
6/30/1998 11,626 11,544 11,211
9/30/1998 12,797 12,454 12,238
12/31/1998 12,397 12,334 11,946
3/31/1999 11,211 11,806 10,886
6/30/1999 10,632 11,513 10,335
9/30/1999 10,407 11,498 10,100
12/31/1999 9,859 11,256 9,539
3/31/2000 10,833 12,163 10,228
6/30/2000 10,812 12,283 10,139
9/30/2000 10,955 12,624 10,165
12/31/2000 11,850 13,537 10,788
3/31/2001 11,803 13,723 10,652
6/30/2001 11,370 13,482 10,189
9/30/2001 12,093 14,389 10,705
12/31/2001 11,860 14,107 10,613
3/31/2002 11,307 13,872 10,112
6/30/2002 12,131 14,703 10,559
9/30/2002 14,257 16,477 11,959
12/31/2002 14,068 16,476 11,741
3/31/2003 14,144 16,704 11,678
6/30/2003 15,066 17,551 12,152
9/30/2003 14,359 17,081 11,586
12/31/2003 13,978 16,885 11,232
3/31/2004 14,900 17,782 11,735
6/30/2004 13,671 16,855 10,889
9/30/2004 14,836 17,927 11,535
12/31/2004 15,155 18,186 11,652
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (08/18/97)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND 8.42% 8.98% 5.80%
PRICE MOVEMENT OF LONG TREASURY BOND 3.74% 4.08% 2.10%
LEHMAN LONG TREASURY BOND INDEX 7.70% 10.07% 8.45%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE LEHMAN LONG TREASURY BOND
INDEX IS AN UNMANAGED BOND INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR
OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. THE PRICE MOVEMENT OF
THE LONG TREASURY BOND REPRESENTS A CUMULATIVE PERCENTAGE CHANGE IN ITS CLOSING
PRICE. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 33.5%
FUTURES CONTRACTS 84.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
JUNO FUND
OBJECTIVE: To provide total returns that will inversely correlate to the price
movements of a benchmark for U.S.Treasury debt instruments or futures contract
on a specified debt instrument. The Fund's current benchmark is the inverse of
the daily price movement of the Lehman Long Treasury Bond Index.
Inception: May 1, 2003
The Federal Reserve maintained its accommodative monetary policy during the
first half of 2004, but the Long Bond yield moved higher during those months,
anticipating the Fed funds rate increases that would follow. From a historic low
of 1.0%, the Fed increased rates five times in the second half of 2004, bringing
the rate to 2.25% at year-end. However, the Long Bond yield ended the year at
4.82%, below its yield of 5.19% on January 1, in reaction to a slowing economy
and low inflation. Mid-year, the Bond price began to rise and the yield trended
lower.
Rydex Juno Fund establishes short positions in both U.S. Treasury bonds, bond
futures contracts, and purchases call options on U.S. Treasury bond futures
contracts traded on the Chicago Board of Trade. The Fund ended the year at
- -10.67%, due in large part to its usual negative cost of carry and unusually low
money market rates. For the year ended December 31, 2004, the fund achieved a
daily correlation of more than .97 to its benchmark of -100% of the daily price
performance of the current U.S. Treasury Long Bond. The effects of compounding
may cause the longer-term correlation of the fund to its benchmark to
diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 1, 2003 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LEHMAN LONG TREASURY U.S. TREASURY
DATE JUNO FUND BOND INDEX LONG BOND INDEX
- ---- --------- ---------- ---------------
5/1/2003 10,000 10,000 10,000
5/31/2003 9,296 10,562 10,635
6/30/2003 9,448 10,401 10,337
7/31/2003 10,728 9,471 9,145
8/31/2003 10,540 9,622 9,372
9/30/2003 9,816 10,122 9,856
10/31/2003 10,184 9,841 9,492
11/30/2003 10,100 9,888 9,489
12/31/2003 9,928 10,006 9,555
1/31/2004 9,676 10,178 9,721
2/29/2004 9,384 10,380 9,894
3/31/2004 9,184 10,538 9,983
4/30/2004 9,828 9,947 9,276
5/31/2004 9,864 9,898 9,201
6/30/2004 9,732 9,989 9,263
7/31/2004 9,540 10,158 9,397
8/31/2004 9,120 10,534 9,765
9/30/2004 9,043 10,624 9,813
10/31/2004 8,877 10,780 9,957
11/30/2004 9,144 10,540 9,647
12/31/2004 8,869 10,777 9,912
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/01/03)
- --------------------------------------------------------------------------------
JUNO FUND -10.67% -6.94%
PRICE MOVEMENT OF LONG TREASURY BOND 3.74% -0.53%
LEHMAN LONG TREASURY BOND INDEX 7.70% 4.59%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE LEHMAN LONG TREASURY BOND
INDEX IS AN UNMANAGED BOND INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR
OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. THE PRICE MOVEMENT OF
THE LONG TREASURY BOND REPRESENTS A CUMULATIVE PERCENTAGE CHANGE IN ITS CLOSING
PRICE. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
JUNO FUND
----------
U.S. TREASURY OBLIGATIONS SHORT SALES -70.0%
FUTURES CONTRACTS SHORT SALES -30.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in short sales of long-term Treasury Bonds and
derivative instruments, such as futures and option contracts.
See Notes to Financial Statements.
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark. The Fund's current benchmark is the Dow Jones STOXX 50
Index(sm).
Inception: October 1, 2001
For the second consecutive year, European markets bested both U.S. and Japanese
markets. Although the Dow Jones STOXX 50 Index returned 4.30%, short of the S&P
500 Index's gain of 10.89%, the euro's appreciation versus the dollar helped
Rydex Large-Cap Europe Fund to a gain of 16.15% for the year. Utilities and
energy were the best-performing sectors in the STOXX 50 Index, while
semiconductors underperformed. For the year ended December 31, 2004, the Fund
achieved a daily correlation of more than 0.98 to its benchmark of 125% the
daily price performance of the Dow Jones STOXX 50 Index. The effects of
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE LARGE-CAP EUROPE FUND DOW JONES STOXX 50 INDEX
- ---- --------------------- ------------------------
10/1/2001 10,000 10,000
10/31/2001 10,524 10,685
11/30/2001 10,920 11,010
12/31/2001 11,204 11,428
1/31/2002 10,444 11,050
2/28/2002 10,236 10,951
3/31/2002 10,808 11,392
4/30/2002 10,620 10,821
5/31/2002 10,476 10,352
6/30/2002 10,052 9,437
7/31/2002 8,812 8,438
8/31/2002 8,524 8,353
9/30/2002 7,151 7,137
10/31/2002 7,933 7,896
11/30/2002 8,373 8,209
12/31/2002 8,027 7,423
1/31/2003 7,505 6,899
2/28/2003 7,151 6,676
3/31/2003 7,011 6,471
4/30/2003 8,159 7,148
5/31/2003 8,755 7,139
6/30/2003 8,932 7,385
7/31/2003 8,870 7,628
8/31/2003 8,915 7,645
9/30/2003 9,109 7,359
10/31/2003 9,758 7,824
11/30/2003 10,314 7,914
12/31/2003 11,485 8,202
1/31/2004 11,475 8,313
2/29/2004 11,751 8,474
3/31/2004 11,174 8,211
4/30/2004 10,872 8,348
5/31/2004 11,088 8,230
6/30/2004 11,199 8,286
7/31/2004 10,797 8,171
8/31/2004 10,918 8,078
9/30/2004 11,452 8,227
10/31/2004 11,931 8,300
11/30/2004 12,700 8,440
12/31/2004 13,340 8,555
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND 16.15% 9.27%
DOW JONES STOXX 50 INDEX 4.30% -4.69%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE DOW JONES STOXX 50 INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
LARGE-CAP EUROPE FUND DOW JONES STOXX 50 INDEX
--------------------- ------------------------
OTHER 10.2%
FINANCIAL 36.4%
CONSUMER, NON-CYCLICAL 20.4%
ENERGY 17.8%
COMMUNICATIONS 15.2%
FUTURES CONTRACTS 122.9%
EQUITY INDEX SWAP AGREEMENTS 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark. The Fund's current benchmark is the Topix 100 Index.
Inception: October 1, 2001
Japanese markets joined U.S. and European markets in rallying for the second
consecutive year, with the Topix 100 Index gaining 6.76% for the year. Rydex
Large-Cap Japan Fund advanced 10.33%, helped in part by the yen's 4.3%
appreciation versus the dollar. The country's economy continued to improve
slowly, helped by increased trade with China. Financial services led the
top-performing sectors, while semiconductor stocks struggled during the period.
For the year ended December 31, 2004, the Fund achieved a daily correlation of
more than 0.95 to its benchmark of 125% the daily price performance of the Topix
100 Index. The effects of compounding may cause the longer-term correlation of
the Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE LARGE-CAP JAPAN FUND TOPIX 100 INDEX
- ---- -------------------- ---------------
10/1/2001 10,000 10,000
10/31/2001 9,864 10,046
11/30/2001 9,760 10,150
12/31/2001 8,764 10,008
1/31/2002 7,856 9,337
2/28/2002 8,432 9,691
3/31/2002 9,348 10,509
4/30/2002 9,788 10,441
5/31/2002 10,344 10,701
6/30/2002 9,524 9,711
7/31/2002 8,704 9,056
8/31/2002 8,556 8,844
9/30/2002 7,854 8,604
10/31/2002 7,228 8,091
11/30/2002 7,537 8,460
12/31/2002 7,344 7,917
1/31/2003 6,939 7,661
2/28/2003 6,959 7,512
3/31/2003 6,477 7,134
4/30/2003 6,341 7,128
5/31/2003 6,786 7,505
6/30/2003 7,389 8,088
7/31/2003 7,878 8,491
8/31/2003 8,762 9,074
9/30/2003 9,184 9,085
10/31/2003 9,613 9,238
11/30/2003 9,324 8,984
12/31/2003 10,107 9,359
1/31/2004 10,147 9,391
2/29/2004 10,191 9,672
3/31/2004 11,709 10,332
4/30/2004 10,597 10,375
5/31/2004 10,380 9,992
6/30/2004 10,995 10,256
7/31/2004 9,967 9,897
8/31/2004 10,131 9,806
9/30/2004 9,685 9,524
10/31/2004 9,975 9,426
11/30/2004 10,412 9,533
12/31/2004 11,151 9,991
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND 10.33% 3.41%
TOPIX 100 INDEX 6.76% -0.03%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE TOPIX 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
LARGE-CAP JAPAN FUND TOPIX 100 FUND
-------------------- --------------
OTHER 4.8%
CONSUMER, CYCLICAL 26.9%
FINANCIAL 21.9%
INDUSTRIAL 14.6%
COMMUNICATIONS 12.1%
CONSUMER, NON-CYCLICAL 8.0%
TECHNOLOGY 6.1%
UTILITIES 5.7%
FUTURES CONTRACTS 6.9%
EQUITY INDEX SWAP AGREEMENTS 118.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 200% of the
performance of the Dow Jones Industrial Average Index.
Inception: May 3, 2004
The Dow Jones Industrial Average Index was in a range for most of the year
before rallying in the fourth quarter. The energy sector, consisting almost
entirely of Exxon Mobil, was an outperformer for the year, while the health care
and technology sectors struggled during the period.
McDonald's (31.5%), Exxon Mobil (28%), Eastman Kodak (27.9%) and Johnson &
Johnson (25.2%) led the list of gainers. Merck (-27.8%), Intel (-22.3%), Pfizer
(-22.3%) and General Motors (-21.5%) were the year's big losers. Because this
Fund is long the Dow average, which underperformed other broad-market indices in
the past year, the fund returned 8.65% since May 3, 2004, the Fund's inception,
through December 31, 2004.For the year ended December 31, 2004, the Fund
achieved a daily correlation of more than .99 to its benchmark of 200% the daily
price performance of the Dow Jones Industrial Average Index. The effects of
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE LONG DYNAMIC DOW 30 FUND DOW JONES INDUSTRIAL AVERAGE
- ---- ------------------------ ----------------------------
5/3/2004 10,000 10,000
5/4/2004 10,008 10,003
5/5/2004 10,000 9,997
5/6/2004 9,856 9,932
5/7/2004 9,624 9,811
5/8/2004 9,624 9,811
5/9/2004 9,624 9,811
5/10/2004 9,380 9,688
5/11/2004 9,436 9,718
5/12/2004 9,496 9,750
5/13/2004 9,428 9,717
5/14/2004 9,432 9,721
5/15/2004 9,432 9,721
5/16/2004 9,432 9,721
5/17/2004 9,228 9,618
5/18/2004 9,348 9,679
5/19/2004 9,304 9,656
5/20/2004 9,308 9,656
5/21/2004 9,360 9,685
5/22/2004 9,360 9,685
5/23/2004 9,360 9,685
5/24/2004 9,340 9,677
5/25/2004 9,640 9,831
5/26/2004 9,624 9,824
5/27/2004 9,804 9,916
5/28/2004 9,764 9,900
5/29/2004 9,764 9,900
5/30/2004 9,764 9,900
5/31/2004 9,764 9,900
6/1/2004 9,788 9,914
6/2/2004 9,908 9,975
6/3/2004 9,780 9,910
6/4/2004 9,864 9,956
6/5/2004 9,864 9,956
6/6/2004 9,864 9,956
6/7/2004 10,148 10,100
6/8/2004 10,228 10,141
6/9/2004 10,104 10,079
6/10/2004 10,184 10,119
6/11/2004 10,184 10,119
6/12/2004 10,184 10,119
6/13/2004 10,184 10,119
6/14/2004 10,048 10,053
6/15/2004 10,144 10,097
6/16/2004 10,140 10,096
6/17/2004 10,132 10,094
6/18/2004 10,204 10,132
6/19/2004 10,204 10,132
6/20/2004 10,204 10,132
6/21/2004 10,124 10,088
6/22/2004 10,172 10,111
6/23/2004 10,332 10,194
6/24/2004 10,264 10,160
6/25/2004 10,120 10,090
6/26/2004 10,120 10,090
6/27/2004 10,120 10,090
6/28/2004 10,088 10,076
6/29/2004 10,196 10,131
6/30/2004 10,244 10,153
7/1/2004 10,040 10,057
7/2/2004 9,936 10,007
7/3/2004 9,936 10,007
7/4/2004 9,936 10,007
7/5/2004 9,936 10,007
7/6/2004 9,820 9,945
7/7/2004 9,868 9,970
7/8/2004 9,728 9,903
7/9/2004 9,804 9,944
7/10/2004 9,804 9,944
7/11/2004 9,804 9,944
7/12/2004 9,848 9,968
7/13/2004 9,864 9,977
7/14/2004 9,784 9,940
7/15/2004 9,704 9,895
7/16/2004 9,664 9,875
7/17/2004 9,664 9,875
7/18/2004 9,664 9,875
7/19/2004 9,572 9,831
7/20/2004 9,676 9,885
7/21/2004 9,476 9,786
7/22/2004 9,484 9,790
7/23/2004 9,316 9,704
7/24/2004 9,316 9,704
7/25/2004 9,316 9,704
7/26/2004 9,316 9,704
7/27/2004 9,544 9,824
7/28/2004 9,604 9,855
7/29/2004 9,636 9,870
7/30/2004 9,648 9,880
7/31/2004 9,648 9,880
8/1/2004 9,648 9,880
8/2/2004 9,720 9,919
8/3/2004 9,608 9,861
8/4/2004 9,624 9,869
8/5/2004 9,308 9,709
8/6/2004 9,036 9,567
8/7/2004 9,036 9,567
8/8/2004 9,036 9,567
8/9/2004 9,036 9,566
8/10/2004 9,272 9,693
8/11/2004 9,280 9,697
8/12/2004 9,044 9,576
8/13/2004 9,064 9,589
8/14/2004 9,064 9,589
8/15/2004 9,064 9,589
8/16/2004 9,300 9,715
8/17/2004 9,336 9,733
8/18/2004 9,548 9,848
8/19/2004 9,464 9,807
8/20/2004 9,600 9,874
8/21/2004 9,600 9,874
8/22/2004 9,600 9,874
8/23/2004 9,532 9,839
8/24/2004 9,576 9,864
8/25/2004 9,736 9,945
8/26/2004 9,716 9,937
8/27/2004 9,764 9,958
8/28/2004 9,764 9,958
8/29/2004 9,764 9,958
8/30/2004 9,624 9,887
8/31/2004 9,712 9,938
9/1/2004 9,708 9,936
9/2/2004 9,948 10,055
9/3/2004 9,888 10,026
9/4/2004 9,888 10,026
9/5/2004 9,888 10,026
9/6/2004 9,888 10,026
9/7/2004 10,036 10,106
9/8/2004 9,976 10,077
9/9/2004 9,928 10,054
9/10/2004 9,960 10,077
9/11/2004 9,960 10,077
9/12/2004 9,960 10,077
9/13/2004 9,972 10,086
9/14/2004 9,988 10,090
9/15/2004 9,808 10,005
9/16/2004 9,832 10,018
9/17/2004 9,912 10,057
9/18/2004 9,912 10,057
9/19/2004 9,912 10,057
9/20/2004 9,748 9,979
9/21/2004 9,820 10,018
9/22/2004 9,548 9,885
9/23/2004 9,420 9,818
9/24/2004 9,432 9,826
9/25/2004 9,432 9,826
9/26/2004 9,432 9,826
9/27/2004 9,320 9,769
9/28/2004 9,488 9,856
9/29/2004 9,596 9,913
9/30/2004 9,488 9,859
10/1/2004 9,700 9,969
10/2/2004 9,700 9,969
10/3/2004 9,700 9,969
10/4/2004 9,744 9,994
10/5/2004 9,676 9,956
10/6/2004 9,796 10,023
10/7/2004 9,576 9,911
10/8/2004 9,444 9,842
10/9/2004 9,444 9,842
10/10/2004 9,444 9,842
10/11/2004 9,496 9,869
10/12/2004 9,480 9,864
10/13/2004 9,332 9,791
10/14/2004 9,144 9,685
10/15/2004 9,204 9,723
10/16/2004 9,204 9,723
10/17/2004 9,204 9,723
10/18/2004 9,248 9,746
10/19/2004 9,136 9,688
10/20/2004 9,116 9,679
10/21/2004 9,080 9,662
10/22/2004 8,884 9,556
10/23/2004 8,884 9,556
10/24/2004 8,884 9,556
10/25/2004 8,868 9,548
10/26/2004 9,112 9,684
10/27/2004 9,324 9,795
10/28/2004 9,332 9,800
10/29/2004 9,368 9,823
10/30/2004 9,368 9,823
10/31/2004 9,368 9,823
11/1/2004 9,416 9,849
11/2/2004 9,380 9,831
11/3/2004 9,572 9,932
11/4/2004 9,904 10,109
11/5/2004 10,048 10,181
11/6/2004 10,048 10,181
11/7/2004 10,048 10,181
11/8/2004 10,060 10,186
11/9/2004 10,064 10,186
11/10/2004 10,076 10,191
11/11/2004 10,240 10,274
11/12/2004 10,364 10,344
11/13/2004 10,364 10,344
11/14/2004 10,364 10,344
11/15/2004 10,384 10,356
11/16/2004 10,264 10,294
11/17/2004 10,424 10,361
11/18/2004 10,468 10,384
11/19/2004 10,236 10,270
11/20/2004 10,236 10,270
11/21/2004 10,236 10,270
11/22/2004 10,296 10,302
11/23/2004 10,304 10,305
11/24/2004 10,352 10,307
11/25/2004 10,352 10,333
11/26/2004 10,356 10,335
11/27/2004 10,356 10,335
11/28/2004 10,356 10,335
11/29/2004 10,264 10,291
11/30/2004 10,172 10,244
12/1/2004 10,488 10,407
12/2/2004 10,476 10,402
12/3/2004 10,488 10,409
12/4/2004 10,488 10,409
12/5/2004 10,488 10,409
12/6/2004 10,396 10,365
12/7/2004 10,188 10,260
12/8/2004 10,292 10,315
12/9/2004 10,408 10,372
12/10/2004 10,388 10,363
12/11/2004 10,388 10,363
12/12/2004 10,388 10,363
12/13/2004 10,572 10,457
12/14/2004 10,652 10,494
12/15/2004 10,680 10,510
12/16/2004 10,704 10,524
12/17/2004 10,600 10,469
12/18/2004 10,600 10,469
12/19/2004 10,600 10,469
12/20/2004 10,612 10,481
12/21/2004 10,804 10,577
12/22/2004 10,940 10,639
12/23/2004 10,968 10,650
12/24/2004 10,968 10,650
12/25/2004 10,968 10,650
12/26/2004 10,968 10,650
12/27/2004 10,860 10,600
12/28/2004 11,012 10,677
12/29/2004 10,960 10,652
12/30/2004 10,907 10,624
12/31/2004 10,865 10,607
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND 8.65%
DOW JONES INDUSTRIAL AVERAGE INDEX 6.07%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE DOW JONES INDUSTRIAL AVERAGE
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
LONG DYNAMIC DOW JONES INDUSTRIAL
DOW 30 FUND AVERAGE INDEX
----------- -------------
OTHER 9.0% 8.0%
INDUSTRIALS 18.5% 27.8%
CONSUMER STAPLES 9.6% 14.6%
FINANCIALS 9.5% 14.5%
INFORMATION TECHNOLOGY 7.7% 11.6%
CONSUMER DISCRETIONARY 6.5% 9.8%
HEALTH CARE 5.6% 8.3%
MATERIALS 5.4%
FUTURES CONTRACTS 65.7%
EQUITY INDEX SWAP AGREEMENTS 68.3% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
United Technologies Corp. 4.7%
International Business Machines Corp. 4.5%
Caterpillar, Inc. 4.4%
3M Co. 3.7%
American International Group, Inc. 3.0%
Johnson & Johnson 2.9%
Altria Group, Inc. 2.8%
American Express Co. 2.6%
Procter & Gamble Co. 2.5%
Wal-Mart Stores, Inc. 2.4%
- ------------------------------------------------------
Top Ten Total 33.5%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE DYNAMIC DOW 30 FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 200% of the
inverse (opposite) performance of the Dow Jones Industrial Average Index.
Inception: May 3, 2004
The Dow Jones Industrial Average Index rose 6.07% since May 3, 2004. The Index
was in a trading range for most of the year before rising strongly in the fourth
quarter. The energy sector, consisting almost entirely of Exxon Mobil, was also
an outperformer for the period, while the health care and technology sectors
struggled.
McDonald's (31.5%), Exxon Mobil (28%), Eastman Kodak (27.9%) and Johnson &
Johnson (25.2%) led the list of gainers. Merck (-27.8%), Intel (-22.3%), Pfizer
(-22.3%) and General Motors (-21.5%) were the year's big losers. Striving to
achieve 200% of the daily performance of the Dow proved advantageous, as the
average disappointed. The Fund returned -11.47% for the period beginning May 3,
2004, the Fund's inception, through December 31, 2004. For the year ended
December 31, 2004, the Fund achieved a daily correlation of more than .99 to its
benchmark of -200% the daily price performance of the Dow Jones Industrial
Average Index. The effects of compounding may cause the longer-term correlation
of the Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE INVERSE DYNAMIC DOW 30 FUND DOW JONES INDUSTRIAL AVERAGE INDEX
- ---- --------------------------- ----------------------------------
5/3/2004 10,000 10,000
5/4/2004 9,992 10,003
5/5/2004 9,996 9,997
5/6/2004 10,138 9,932
5/7/2004 10,378 9,811
5/8/2004 10,378 9,811
5/9/2004 10,378 9,811
5/10/2004 10,658 9,688
5/11/2004 10,586 9,718
5/12/2004 10,512 9,750
5/13/2004 10,592 9,717
5/14/2004 10,590 9,721
5/15/2004 10,590 9,721
5/16/2004 10,590 9,721
5/17/2004 10,812 9,618
5/18/2004 10,666 9,679
5/19/2004 10,718 9,656
5/20/2004 10,714 9,656
5/21/2004 10,650 9,685
5/22/2004 10,650 9,685
5/23/2004 10,650 9,685
5/24/2004 10,672 9,677
5/25/2004 10,336 9,831
5/26/2004 10,348 9,824
5/27/2004 10,160 9,916
5/28/2004 10,192 9,900
5/29/2004 10,192 9,900
5/30/2004 10,192 9,900
5/31/2004 10,192 9,900
6/1/2004 10,164 9,914
6/2/2004 10,038 9,975
6/3/2004 10,172 9,910
6/4/2004 10,076 9,956
6/5/2004 10,076 9,956
6/6/2004 10,076 9,956
6/7/2004 9,790 10,100
6/8/2004 9,710 10,141
6/9/2004 9,828 10,079
6/10/2004 9,748 10,119
6/11/2004 9,748 10,119
6/12/2004 9,748 10,119
6/13/2004 9,748 10,119
6/14/2004 9,876 10,053
6/15/2004 9,786 10,097
6/16/2004 9,790 10,096
6/17/2004 9,794 10,094
6/18/2004 9,726 10,132
6/19/2004 9,726 10,132
6/20/2004 9,726 10,132
6/21/2004 9,804 10,088
6/22/2004 9,758 10,111
6/23/2004 9,602 10,194
6/24/2004 9,664 10,160
6/25/2004 9,800 10,090
6/26/2004 9,800 10,090
6/27/2004 9,800 10,090
6/28/2004 9,828 10,076
6/29/2004 9,714 10,131
6/30/2004 9,672 10,153
7/1/2004 9,860 10,057
7/2/2004 9,962 10,007
7/3/2004 9,962 10,007
7/4/2004 9,962 10,007
7/5/2004 9,962 10,007
7/6/2004 10,080 9,945
7/7/2004 10,030 9,970
7/8/2004 10,168 9,903
7/9/2004 10,084 9,944
7/10/2004 10,084 9,944
7/11/2004 10,084 9,944
7/12/2004 10,036 9,968
7/13/2004 10,018 9,977
7/14/2004 10,102 9,940
7/15/2004 10,180 9,895
7/16/2004 10,224 9,875
7/17/2004 10,224 9,875
7/18/2004 10,224 9,875
7/19/2004 10,320 9,831
7/20/2004 10,206 9,885
7/21/2004 10,416 9,786
7/22/2004 10,410 9,790
7/23/2004 10,594 9,704
7/24/2004 10,594 9,704
7/25/2004 10,594 9,704
7/26/2004 10,584 9,704
7/27/2004 10,330 9,824
7/28/2004 10,264 9,855
7/29/2004 10,232 9,870
7/30/2004 10,220 9,880
7/31/2004 10,220 9,880
8/1/2004 10,220 9,880
8/2/2004 10,138 9,919
8/3/2004 10,266 9,861
8/4/2004 10,248 9,869
8/5/2004 10,580 9,709
8/6/2004 10,894 9,567
8/7/2004 10,894 9,567
8/8/2004 10,894 9,567
8/9/2004 10,890 9,566
8/10/2004 10,608 9,693
8/11/2004 10,596 9,697
8/12/2004 10,860 9,576
8/13/2004 10,828 9,589
8/14/2004 10,828 9,589
8/15/2004 10,828 9,589
8/16/2004 10,548 9,715
8/17/2004 10,508 9,733
8/18/2004 10,262 9,848
8/19/2004 10,350 9,807
8/20/2004 10,204 9,874
8/21/2004 10,204 9,874
8/22/2004 10,204 9,874
8/23/2004 10,276 9,839
8/24/2004 10,232 9,864
8/25/2004 10,060 9,945
8/26/2004 10,080 9,937
8/27/2004 10,032 9,958
8/28/2004 10,032 9,958
8/29/2004 10,032 9,958
8/30/2004 10,176 9,887
8/31/2004 10,076 9,938
9/1/2004 10,082 9,936
9/2/2004 9,838 10,055
9/3/2004 9,900 10,026
9/4/2004 9,900 10,026
9/5/2004 9,900 10,026
9/6/2004 9,900 10,026
9/7/2004 9,744 10,106
9/8/2004 9,798 10,077
9/9/2004 9,844 10,054
9/10/2004 9,788 10,077
9/11/2004 9,788 10,077
9/12/2004 9,788 10,077
9/13/2004 9,772 10,086
9/14/2004 9,760 10,090
9/15/2004 9,932 10,005
9/16/2004 9,908 10,018
9/17/2004 9,830 10,057
9/18/2004 9,830 10,057
9/19/2004 9,830 10,057
9/20/2004 9,986 9,979
9/21/2004 9,906 10,018
9/22/2004 10,174 9,885
9/23/2004 10,308 9,818
9/24/2004 10,294 9,826
9/25/2004 10,294 9,826
9/26/2004 10,294 9,826
9/27/2004 10,412 9,769
9/28/2004 10,230 9,856
9/29/2004 10,116 9,913
9/30/2004 10,228 9,859
10/1/2004 9,996 9,969
10/2/2004 9,996 9,969
10/3/2004 9,996 9,969
10/4/2004 9,948 9,994
10/5/2004 10,024 9,956
10/6/2004 9,892 10,023
10/7/2004 10,116 9,911
10/8/2004 10,260 9,842
10/9/2004 10,260 9,842
10/10/2004 10,260 9,842
10/11/2004 10,202 9,869
10/12/2004 10,216 9,864
10/13/2004 10,370 9,791
10/14/2004 10,592 9,685
10/15/2004 10,516 9,723
10/16/2004 10,516 9,723
10/17/2004 10,516 9,723
10/18/2004 10,466 9,746
10/19/2004 10,590 9,688
10/20/2004 10,612 9,679
10/21/2004 10,654 9,662
10/22/2004 10,886 9,556
10/23/2004 10,886 9,556
10/24/2004 10,886 9,556
10/25/2004 10,906 9,548
10/26/2004 10,602 9,684
10/27/2004 10,356 9,795
10/28/2004 10,346 9,800
10/29/2004 10,302 9,823
10/30/2004 10,302 9,823
10/31/2004 10,302 9,823
11/1/2004 10,248 9,849
11/2/2004 10,288 9,831
11/3/2004 10,074 9,932
11/4/2004 9,714 10,109
11/5/2004 9,578 10,181
11/6/2004 9,578 10,181
11/7/2004 9,578 10,181
11/8/2004 9,566 10,186
11/9/2004 9,566 10,186
11/10/2004 9,552 10,191
11/11/2004 9,398 10,274
11/12/2004 9,282 10,344
11/13/2004 9,282 10,344
11/14/2004 9,282 10,344
11/15/2004 9,262 10,356
11/16/2004 9,372 10,294
11/17/2004 9,246 10,361
11/18/2004 9,204 10,384
11/19/2004 9,406 10,270
11/20/2004 9,406 10,270
11/21/2004 9,406 10,270
11/22/2004 9,350 10,302
11/23/2004 9,344 10,305
11/24/2004 9,298 10,307
11/25/2004 9,298 10,333
11/26/2004 9,296 10,335
11/27/2004 9,296 10,335
11/28/2004 9,296 10,335
11/29/2004 9,378 10,291
11/30/2004 9,462 10,244
12/1/2004 9,172 10,407
12/2/2004 9,182 10,402
12/3/2004 9,174 10,409
12/4/2004 9,174 10,409
12/5/2004 9,174 10,409
12/6/2004 9,250 10,365
12/7/2004 9,432 10,260
12/8/2004 9,342 10,315
12/9/2004 9,236 10,372
12/10/2004 9,254 10,363
12/11/2004 9,254 10,363
12/12/2004 9,254 10,363
12/13/2004 9,088 10,457
12/14/2004 9,016 10,494
12/15/2004 8,998 10,510
12/16/2004 8,982 10,524
12/17/2004 9,060 10,469
12/18/2004 9,060 10,469
12/19/2004 9,060 10,469
12/20/2004 9,054 10,481
12/21/2004 8,896 10,577
12/22/2004 8,786 10,639
12/23/2004 8,760 10,650
12/24/2004 8,760 10,650
12/25/2004 8,760 10,650
12/26/2004 8,760 10,650
12/27/2004 8,848 10,600
12/28/2004 8,726 10,677
12/29/2004 8,772 10,652
12/30/2004 8,814 10,624
12/31/2004 8,853 10,607
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
INVERSE DYNAMIC DOW 30 FUND -11.47%
DOW JONES INDUSTRIAL AVERAGE INDEX 6.07%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE DOW JONES INDUSTRIAL AVERAGE
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
INVERSE DYNAMIC DOW JONES INDUSTRIAL
DOW 30 FUND AVERAGE INDEX
----------- -------------
OTHER 8.0%
INDUSTRIALS 27.8%
CONSUMER STAPLES 14.6%
FINANCIALS 14.5%
INFORMATION TECHNOLOGY 11.6%
CONSUMER DISCRETIONARY 9.8%
HEALTH CARE 8.3%
MATERIALS 5.4%
FUTURES CONTRACTS -133.8%
EQUITY INDEX SWAP AGREEMENTS -66.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The fund invests principally in leveraged derivative instruments, such as equity
swap agreements, futures contracts, and options on securities, futures contracts
and stock indices.
See Notes to Financial Statements.
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small cap value securities. The Fund's current benchmark is the
S&P SmallCap 600/Barra Value Index.
Inception: May 3, 2004
There was a lot of good news for Rydex Small-Cap Value Fund during the reporting
period, as small-caps outperformed the other market capitalizations and value
outperformed growth. Rydex Small-Cap Value Fund returned 18.03% versus its
benchmark, the S&P SmallCap 600/Barra Value Index, which returned 18.38%. For
the year ended December 31, 2004, the Fund achieved a daily correlation of more
than .99 to its benchmark of the daily price performance of the S&P SmallCap
600/Barra Value Index. The effects of compounding may cause the longer-term
correlation of the Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE SMALL-CAP VALUE FUND S&P SMALLCAP 600/BARRA VALUE INDEX
- ---- -------------------- ----------------------------------
5/3/2004 10,000 10,000
5/4/2004 10,072 10,076
5/5/2004 10,064 10,067
5/6/2004 9,964 9,966
5/7/2004 9,708 9,709
5/8/2004 9,708 9,709
5/9/2004 9,708 9,709
5/10/2004 9,536 9,534
5/11/2004 9,692 9,691
5/12/2004 9,728 9,727
5/13/2004 9,664 9,665
5/14/2004 9,640 9,640
5/15/2004 9,640 9,640
5/16/2004 9,640 9,640
5/17/2004 9,496 9,494
5/18/2004 9,628 9,632
5/19/2004 9,604 9,604
5/20/2004 9,648 9,652
5/21/2004 9,712 9,716
5/22/2004 9,712 9,716
5/23/2004 9,712 9,716
5/24/2004 9,828 9,833
5/25/2004 10,060 10,067
5/26/2004 10,056 10,063
5/27/2004 10,056 10,063
5/28/2004 10,052 10,063
5/29/2004 10,052 10,063
5/30/2004 10,052 10,063
5/31/2004 10,052 10,063
6/1/2004 10,108 10,117
6/2/2004 10,124 10,133
6/3/2004 9,960 9,968
6/4/2004 10,020 10,030
6/5/2004 10,020 10,030
6/6/2004 10,020 10,030
6/7/2004 10,232 10,241
6/8/2004 10,236 10,247
6/9/2004 10,108 10,115
6/10/2004 10,132 10,140
6/11/2004 10,132 10,140
6/12/2004 10,132 10,140
6/13/2004 10,132 10,140
6/14/2004 9,960 9,966
6/15/2004 10,124 10,134
6/16/2004 10,172 10,180
6/17/2004 10,212 10,220
6/18/2004 10,244 10,255
6/19/2004 10,244 10,255
6/20/2004 10,244 10,255
6/21/2004 10,216 10,228
6/22/2004 10,256 10,266
6/23/2004 10,376 10,391
6/24/2004 10,344 10,356
6/25/2004 10,448 10,462
6/26/2004 10,448 10,462
6/27/2004 10,448 10,462
6/28/2004 10,424 10,437
6/29/2004 10,532 10,540
6/30/2004 10,596 10,605
7/1/2004 10,476 10,480
7/2/2004 10,500 10,507
7/3/2004 10,500 10,507
7/4/2004 10,500 10,507
7/5/2004 10,500 10,507
7/6/2004 10,356 10,354
7/7/2004 10,356 10,363
7/8/2004 10,188 10,193
7/9/2004 10,224 10,233
7/10/2004 10,224 10,233
7/11/2004 10,224 10,233
7/12/2004 10,216 10,222
7/13/2004 10,252 10,259
7/14/2004 10,204 10,206
7/15/2004 10,248 10,249
7/16/2004 10,188 10,187
7/17/2004 10,188 10,187
7/18/2004 10,188 10,187
7/19/2004 10,180 10,174
7/20/2004 10,320 10,318
7/21/2004 10,088 10,083
7/22/2004 9,996 9,989
7/23/2004 9,924 9,919
7/24/2004 9,924 9,919
7/25/2004 9,924 9,919
7/26/2004 9,856 9,848
7/27/2004 10,016 10,013
7/28/2004 9,960 9,950
7/29/2004 10,096 10,084
7/30/2004 10,100 10,090
7/31/2004 10,100 10,090
8/1/2004 10,100 10,090
8/2/2004 10,140 10,132
8/3/2004 10,012 10,004
8/4/2004 10,024 10,012
8/5/2004 9,852 9,841
8/6/2004 9,640 9,627
8/7/2004 9,640 9,627
8/8/2004 9,640 9,627
8/9/2004 9,644 9,628
8/10/2004 9,824 9,809
8/11/2004 9,808 9,792
8/12/2004 9,608 9,595
8/13/2004 9,620 9,607
8/14/2004 9,620 9,607
8/15/2004 9,620 9,607
8/16/2004 9,836 9,824
8/17/2004 9,856 9,845
8/18/2004 10,016 10,002
8/19/2004 9,960 9,947
8/20/2004 10,136 10,130
8/21/2004 10,136 10,130
8/22/2004 10,136 10,130
8/23/2004 10,032 10,026
8/24/2004 10,092 10,086
8/25/2004 10,132 10,127
8/26/2004 10,116 10,108
8/27/2004 10,188 10,181
8/28/2004 10,188 10,181
8/29/2004 10,188 10,181
8/30/2004 10,064 10,055
8/31/2004 10,120 10,111
9/1/2004 10,192 10,184
9/2/2004 10,344 10,335
9/3/2004 10,276 10,270
9/4/2004 10,276 10,270
9/5/2004 10,276 10,270
9/6/2004 10,276 10,270
9/7/2004 10,408 10,402
9/8/2004 10,316 10,308
9/9/2004 10,448 10,438
9/10/2004 10,492 10,482
9/11/2004 10,492 10,482
9/12/2004 10,492 10,482
9/13/2004 10,536 10,528
9/14/2004 10,476 10,468
9/15/2004 10,436 10,425
9/16/2004 10,548 10,541
9/17/2004 10,556 10,547
9/18/2004 10,556 10,547
9/19/2004 10,556 10,547
9/20/2004 10,496 10,490
9/21/2004 10,628 10,619
9/22/2004 10,444 10,434
9/23/2004 10,444 10,437
9/24/2004 10,440 10,435
9/25/2004 10,440 10,435
9/26/2004 10,440 10,435
9/27/2004 10,340 10,337
9/28/2004 10,452 10,447
9/29/2004 10,564 10,559
9/30/2004 10,600 10,597
10/1/2004 10,828 10,829
10/2/2004 10,828 10,829
10/3/2004 10,828 10,829
10/4/2004 10,888 10,892
10/5/2004 10,856 10,859
10/6/2004 10,964 10,967
10/7/2004 10,756 10,762
10/8/2004 10,660 10,662
10/9/2004 10,660 10,662
10/10/2004 10,660 10,662
10/11/2004 10,652 10,657
10/12/2004 10,672 10,676
10/13/2004 10,520 10,522
10/14/2004 10,392 10,393
10/15/2004 10,472 10,478
10/16/2004 10,472 10,478
10/17/2004 10,472 10,478
10/18/2004 10,476 10,485
10/19/2004 10,384 10,391
10/20/2004 10,404 10,411
10/21/2004 10,528 10,538
10/22/2004 10,348 10,362
10/23/2004 10,348 10,362
10/24/2004 10,348 10,362
10/25/2004 10,420 10,431
10/26/2004 10,592 10,605
10/27/2004 10,752 10,762
10/28/2004 10,700 10,709
10/29/2004 10,672 10,679
10/30/2004 10,672 10,679
10/31/2004 10,672 10,679
11/1/2004 10,744 10,752
11/2/2004 10,712 10,718
11/3/2004 10,888 10,894
11/4/2004 11,016 11,022
11/5/2004 11,040 11,048
11/6/2004 11,040 11,048
11/7/2004 11,040 11,048
11/8/2004 10,996 11,005
11/9/2004 11,076 11,085
11/10/2004 11,116 11,125
11/11/2004 11,236 11,246
11/12/2004 11,332 11,345
11/13/2004 11,332 11,345
11/14/2004 11,332 11,345
11/15/2004 11,360 11,372
11/16/2004 11,256 11,272
11/17/2004 11,364 11,380
11/18/2004 11,356 11,371
11/19/2004 11,236 11,251
11/20/2004 11,236 11,251
11/21/2004 11,236 11,251
11/22/2004 11,392 11,409
11/23/2004 11,444 11,461
11/24/2004 11,544 11,565
11/25/2004 11,544 11,565
11/26/2004 11,572 11,593
11/27/2004 11,572 11,593
11/28/2004 11,572 11,593
11/29/2004 11,644 11,666
11/30/2004 11,616 11,638
12/1/2004 11,792 11,814
12/2/2004 11,724 11,743
12/3/2004 11,708 11,731
12/4/2004 11,708 11,731
12/5/2004 11,708 11,731
12/6/2004 11,652 11,675
12/7/2004 11,408 11,430
12/8/2004 11,492 11,514
12/9/2004 11,484 11,507
12/10/2004 11,520 11,546
12/11/2004 11,520 11,546
12/12/2004 11,520 11,546
12/13/2004 11,604 11,628
12/14/2004 11,664 11,690
12/15/2004 11,772 11,798
12/16/2004 11,676 11,697
12/17/2004 11,680 11,705
12/18/2004 11,680 11,705
12/19/2004 11,680 11,705
12/20/2004 11,580 11,609
12/21/2004 11,724 11,758
12/22/2004 11,772 11,804
12/23/2004 11,760 11,794
12/24/2004 11,760 11,794
12/25/2004 11,760 11,794
12/26/2004 11,760 11,794
12/27/2004 11,640 11,676
12/28/2004 11,828 11,864
12/29/2004 11,816 11,850
12/30/2004 11,803 11,839
12/31/2004 11,803 11,838
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND 18.03%
S&P SMALLCAP 600/BARRA VALUE INDEX 18.38%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P SMALLCAP 600/BARRA VALUE
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
S&P SMALLCAP 600/BARRA
SMALL-CAP VALUE FUND VALUE INDEX
-------------------- -----------
OTHER 7.6% 8.6%
INDUSTRIALS 21.8% 21.5%
FINANCIALS 20.0% 20.6%
CONSUMER DISCRETIONARY 14.6% 14.8%
INFORMATION TECHNOLOGY 13.8% 12.7%
HEALTH CARE 7.8% 7.9%
MATERIALS 7.2% 7.9%
UTILITIES 6.7% 6.1%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
MDC Holdings, Inc. 1.0%
Yellow Roadway Corp. 1.0%
Timken Co. 0.9%
South Financial Group, Inc. 0.9%
Briggs & Stratton Corp. 0.8%
Standard-Pacific Corp. 0.8%
Hughes Supply, Inc. 0.8%
Atmos Energy Corp. 0.8%
UGI Corp. 0.8%
Shurgard Storage Centers,
Inc. - Class A 0.8%
- ------------------------------------------------------
Top Ten Total 8.6%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for mid cap value securities. The Fund's current benchmark is the S&P
MidCap 400/Barra Value Index.
Inception: May 3, 2004
Value outperformed growth during the period, and mid-caps performed relatively
well. Boosted by the energy, utilities and materials sectors, Rydex Mid-Cap
Value Fund returned 15.20%. Its benchmark, the S&P MidCap 400/Barra Value Index,
returned 15.00% for the same period. For the year ended December 31, 2004, the
Fund achieved a daily correlation of more than .99 to its benchmark of the daily
price performance of the S&P Midcap 400/Barra Value Index. The effects of
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE MID-CAP VALUE FUND S&P MIDCAP 400/BARRA VALUE INDEX
- ---- ------------------ --------------------------------
5/3/2004 10,000 10,000
5/4/2004 10,024 10,028
5/5/2004 10,044 10,048
5/6/2004 9,948 9,950
5/7/2004 9,732 9,731
5/8/2004 9,732 9,731
5/9/2004 9,732 9,731
5/10/2004 9,568 9,565
5/11/2004 9,668 9,668
5/12/2004 9,656 9,651
5/13/2004 9,672 9,670
5/14/2004 9,672 9,669
5/15/2004 9,672 9,669
5/16/2004 9,672 9,669
5/17/2004 9,564 9,560
5/18/2004 9,624 9,624
5/19/2004 9,592 9,594
5/20/2004 9,616 9,618
5/21/2004 9,648 9,653
5/22/2004 9,648 9,653
5/23/2004 9,648 9,653
5/24/2004 9,760 9,764
5/25/2004 9,940 9,946
5/26/2004 10,008 10,012
5/27/2004 10,056 10,061
5/28/2004 10,100 10,108
5/29/2004 10,100 10,108
5/30/2004 10,100 10,108
5/31/2004 10,100 10,108
6/1/2004 10,120 10,127
6/2/2004 10,140 10,147
6/3/2004 10,012 10,018
6/4/2004 10,080 10,089
6/5/2004 10,080 10,089
6/6/2004 10,080 10,089
6/7/2004 10,240 10,249
6/8/2004 10,216 10,223
6/9/2004 10,096 10,103
6/10/2004 10,124 10,134
6/11/2004 10,124 10,134
6/12/2004 10,124 10,134
6/13/2004 10,124 10,134
6/14/2004 9,992 10,000
6/15/2004 10,116 10,121
6/16/2004 10,132 10,140
6/17/2004 10,152 10,160
6/18/2004 10,160 10,168
6/19/2004 10,160 10,168
6/20/2004 10,160 10,168
6/21/2004 10,148 10,153
6/22/2004 10,196 10,205
6/23/2004 10,288 10,307
6/24/2004 10,264 10,288
6/25/2004 10,304 10,328
6/26/2004 10,304 10,328
6/27/2004 10,304 10,328
6/28/2004 10,260 10,270
6/29/2004 10,288 10,293
6/30/2004 10,400 10,408
7/1/2004 10,268 10,269
7/2/2004 10,268 10,261
7/3/2004 10,268 10,261
7/4/2004 10,268 10,261
7/5/2004 10,268 10,261
7/6/2004 10,144 10,125
7/7/2004 10,164 10,138
7/8/2004 10,060 10,024
7/9/2004 10,108 10,074
7/10/2004 10,108 10,074
7/11/2004 10,108 10,074
7/12/2004 10,104 10,068
7/13/2004 10,120 10,088
7/14/2004 10,116 10,076
7/15/2004 10,156 10,120
7/16/2004 10,104 10,069
7/17/2004 10,104 10,069
7/18/2004 10,104 10,069
7/19/2004 10,120 10,083
7/20/2004 10,220 10,182
7/21/2004 10,040 9,983
7/22/2004 10,008 9,947
7/23/2004 9,904 9,845
7/24/2004 9,904 9,845
7/25/2004 9,904 9,845
7/26/2004 9,836 9,777
7/27/2004 9,936 9,879
7/28/2004 9,900 9,841
7/29/2004 10,016 9,958
7/30/2004 10,008 9,947
7/31/2004 10,008 9,947
8/1/2004 10,008 9,947
8/2/2004 10,060 9,998
8/3/2004 9,964 9,901
8/4/2004 9,944 9,880
8/5/2004 9,768 9,702
8/6/2004 9,632 9,568
8/7/2004 9,632 9,568
8/8/2004 9,632 9,568
8/9/2004 9,648 9,585
8/10/2004 9,796 9,733
8/11/2004 9,736 9,670
8/12/2004 9,604 9,537
8/13/2004 9,596 9,530
8/14/2004 9,596 9,530
8/15/2004 9,596 9,530
8/16/2004 9,756 9,691
8/17/2004 9,796 9,729
8/18/2004 9,916 9,862
8/19/2004 9,856 9,798
8/20/2004 9,968 9,912
8/21/2004 9,968 9,912
8/22/2004 9,968 9,912
8/23/2004 9,920 9,866
8/24/2004 9,940 9,887
8/25/2004 10,032 9,975
8/26/2004 10,036 9,981
8/27/2004 10,080 10,023
8/28/2004 10,080 10,023
8/29/2004 10,080 10,023
8/30/2004 9,960 9,904
8/31/2004 10,056 9,998
9/1/2004 10,132 10,075
9/2/2004 10,208 10,147
9/3/2004 10,172 10,114
9/4/2004 10,172 10,114
9/5/2004 10,172 10,114
9/6/2004 10,172 10,114
9/7/2004 10,260 10,200
9/8/2004 10,128 10,068
9/9/2004 10,212 10,150
9/10/2004 10,228 10,167
9/11/2004 10,228 10,167
9/12/2004 10,228 10,167
9/13/2004 10,272 10,214
9/14/2004 10,240 10,180
9/15/2004 10,188 10,129
9/16/2004 10,280 10,223
9/17/2004 10,296 10,240
9/18/2004 10,296 10,240
9/19/2004 10,296 10,240
9/20/2004 10,244 10,190
9/21/2004 10,336 10,280
9/22/2004 10,228 10,173
9/23/2004 10,192 10,139
9/24/2004 10,236 10,185
9/25/2004 10,236 10,185
9/26/2004 10,236 10,185
9/27/2004 10,164 10,115
9/28/2004 10,228 10,177
9/29/2004 10,244 10,193
9/30/2004 10,336 10,286
10/1/2004 10,484 10,437
10/2/2004 10,484 10,437
10/3/2004 10,484 10,437
10/4/2004 10,476 10,431
10/5/2004 10,460 10,414
10/6/2004 10,540 10,493
10/7/2004 10,400 10,353
10/8/2004 10,332 10,291
10/9/2004 10,332 10,291
10/10/2004 10,332 10,291
10/11/2004 10,324 10,283
10/12/2004 10,308 10,267
10/13/2004 10,192 10,151
10/14/2004 10,128 10,090
10/15/2004 10,168 10,132
10/16/2004 10,168 10,132
10/17/2004 10,168 10,132
10/18/2004 10,180 10,143
10/19/2004 10,096 10,061
10/20/2004 10,116 10,082
10/21/2004 10,204 10,171
10/22/2004 10,136 10,105
10/23/2004 10,136 10,105
10/24/2004 10,136 10,105
10/25/2004 10,184 10,154
10/26/2004 10,280 10,254
10/27/2004 10,392 10,365
10/28/2004 10,368 10,341
10/29/2004 10,384 10,359
10/30/2004 10,384 10,359
10/31/2004 10,384 10,359
11/1/2004 10,412 10,386
11/2/2004 10,396 10,370
11/3/2004 10,552 10,525
11/4/2004 10,712 10,684
11/5/2004 10,716 10,690
11/6/2004 10,716 10,690
11/7/2004 10,716 10,690
11/8/2004 10,680 10,654
11/9/2004 10,720 10,695
11/10/2004 10,748 10,720
11/11/2004 10,848 10,821
11/12/2004 10,980 10,955
11/13/2004 10,980 10,955
11/14/2004 10,980 10,955
11/15/2004 10,964 10,939
11/16/2004 10,908 10,883
11/17/2004 11,000 10,970
11/18/2004 11,000 10,974
11/19/2004 10,892 10,865
11/20/2004 10,892 10,865
11/21/2004 10,892 10,865
11/22/2004 10,996 10,969
11/23/2004 11,032 11,007
11/24/2004 11,132 11,105
11/25/2004 11,132 11,105
11/26/2004 11,144 11,119
11/27/2004 11,144 11,119
11/28/2004 11,144 11,119
11/29/2004 11,116 11,092
11/30/2004 11,104 11,078
12/1/2004 11,216 11,193
12/2/2004 11,152 11,128
12/3/2004 11,192 11,168
12/4/2004 11,192 11,168
12/5/2004 11,192 11,168
12/6/2004 11,140 11,117
12/7/2004 10,992 10,973
12/8/2004 11,044 11,018
12/9/2004 11,100 11,075
12/10/2004 11,136 11,112
12/11/2004 11,136 11,112
12/12/2004 11,136 11,112
12/13/2004 11,220 11,195
12/14/2004 11,312 11,291
12/15/2004 11,416 11,396
12/16/2004 11,348 11,325
12/17/2004 11,336 11,316
12/18/2004 11,336 11,316
12/19/2004 11,336 11,316
12/20/2004 11,268 11,247
12/21/2004 11,384 11,363
12/22/2004 11,420 11,400
12/23/2004 11,424 11,406
12/24/2004 11,424 11,406
12/25/2004 11,424 11,406
12/26/2004 11,424 11,406
12/27/2004 11,360 11,342
12/28/2004 11,484 11,465
12/29/2004 11,496 11,478
12/30/2004 11,541 11,522
12/31/2004 11,520 11,500
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND 15.20%
S&P MIDCAP 400/BARRA VALUE INDEX 15.00%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400/BARRA VALUE
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
S&P MIDCAP 400/BARRA
MID-CAP VALUE FUND VALUE INDEX
------------------ -----------
OTHER 0.8% 0.8%
FINANCIALS 24.3% 24.7%
CONSUMER DISCRETIONARY 16.9% 16.7%
INFORMATION TECHNOLOGY 13.2% 13.0%
UTILITIES 11.0% 11.2%
INDUSTRIALS 8.6% 8.7%
ENERGY 7.1% 7.0%
MATERIALS 6.5% 6.5%
HEALTH CARE 5.7% 5.7%
CONSUMER STAPLES 5.4% 5.7%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
DR Horton, Inc. 1.7%
Lennar Corp. - Class A 1.6%
Fidelity National Financial, Inc. 1.5%
Weatherford International Ltd. 1.3%
Tyson Foods, Inc. - Class A 1.2%
Banknorth Group, Inc. 1.2%
Caesars Entertainment, Inc. 1.2%
Mohawk Industries, Inc. 1.1%
New York Community Bancorp, Inc. 1.0%
Toll Brothers, Inc. 0.9%
- ------------------------------------------------------
Top Ten Total 12.7%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for large cap value securities. The Fund's current benchmark is the
S&P 500/Barra Value Index.
Inception: May 3, 2004
Large-caps were the worst performers of the three market capitalizations, but
fortunately for Rydex Large-Cap Value Fund, there was good news. Value
outperformed growth, helping to level off some of the negatives of large-cap
investing during the period. The Fund returned 12.49% versus its benchmark, the
S&P 500/Barra Value Index, which returned 12.21%. For the year ended December
31, 2004, the Fund achieved a daily correlation of 1.00 to its benchmark of the
daily price performance of the S&P 500/Barra Value Index. The effects of
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE LARGE-CAP VALUE FUND S&P 500/BARRA VALUE INDEX
- ---- -------------------- -------------------------
5/3/2004 10,000 10,000
5/4/2004 10,008 10,026
5/5/2004 10,024 10,043
5/6/2004 9,928 9,947
5/7/2004 9,748 9,753
5/8/2004 9,748 9,753
5/9/2004 9,748 9,753
5/10/2004 9,600 9,605
5/11/2004 9,688 9,688
5/12/2004 9,744 9,743
5/13/2004 9,744 9,745
5/14/2004 9,764 9,765
5/15/2004 9,764 9,765
5/16/2004 9,764 9,765
5/17/2004 9,644 9,643
5/18/2004 9,716 9,716
5/19/2004 9,708 9,705
5/20/2004 9,716 9,714
5/21/2004 9,760 9,759
5/22/2004 9,760 9,759
5/23/2004 9,760 9,759
5/24/2004 9,804 9,806
5/25/2004 9,960 9,966
5/26/2004 9,972 9,975
5/27/2004 10,004 10,005
5/28/2004 10,004 10,008
5/29/2004 10,004 10,008
5/30/2004 10,004 10,008
5/31/2004 10,004 10,008
6/1/2004 10,008 10,011
6/2/2004 10,052 10,051
6/3/2004 9,972 9,969
6/4/2004 10,020 10,022
6/5/2004 10,020 10,022
6/6/2004 10,020 10,022
6/7/2004 10,180 10,181
6/8/2004 10,180 10,181
6/9/2004 10,088 10,086
6/10/2004 10,144 10,145
6/11/2004 10,144 10,145
6/12/2004 10,144 10,145
6/13/2004 10,144 10,145
6/14/2004 10,028 10,026
6/15/2004 10,080 10,082
6/16/2004 10,108 10,110
6/17/2004 10,112 10,115
6/18/2004 10,148 10,150
6/19/2004 10,148 10,150
6/20/2004 10,148 10,150
6/21/2004 10,108 10,108
6/22/2004 10,140 10,142
6/23/2004 10,224 10,229
6/24/2004 10,204 10,210
6/25/2004 10,160 10,178
6/26/2004 10,160 10,178
6/27/2004 10,160 10,178
6/28/2004 10,144 10,151
6/29/2004 10,156 10,161
6/30/2004 10,204 10,211
7/1/2004 10,120 10,119
7/2/2004 10,104 10,105
7/3/2004 10,104 10,105
7/4/2004 10,104 10,105
7/5/2004 10,104 10,105
7/6/2004 10,036 10,025
7/7/2004 10,056 10,045
7/8/2004 9,976 9,960
7/9/2004 10,004 9,986
7/10/2004 10,004 9,986
7/11/2004 10,004 9,986
7/12/2004 10,028 10,014
7/13/2004 10,032 10,017
7/14/2004 10,012 9,997
7/15/2004 9,976 9,955
7/16/2004 9,952 9,931
7/17/2004 9,952 9,931
7/18/2004 9,952 9,931
7/19/2004 9,964 9,943
7/20/2004 10,024 10,005
7/21/2004 9,900 9,878
7/22/2004 9,916 9,893
7/23/2004 9,868 9,846
7/24/2004 9,868 9,846
7/25/2004 9,868 9,846
7/26/2004 9,856 9,834
7/27/2004 9,952 9,928
7/28/2004 9,968 9,941
7/29/2004 10,028 9,998
7/30/2004 10,028 9,999
7/31/2004 10,028 9,999
8/1/2004 10,028 9,999
8/2/2004 10,068 10,041
8/3/2004 10,036 10,007
8/4/2004 10,008 9,977
8/5/2004 9,860 9,830
8/6/2004 9,720 9,688
8/7/2004 9,720 9,688
8/8/2004 9,720 9,688
8/9/2004 9,736 9,704
8/10/2004 9,852 9,823
8/11/2004 9,832 9,796
8/12/2004 9,712 9,673
8/13/2004 9,716 9,678
8/14/2004 9,716 9,678
8/15/2004 9,716 9,678
8/16/2004 9,872 9,831
8/17/2004 9,888 9,847
8/18/2004 10,004 9,960
8/19/2004 9,976 9,933
8/20/2004 10,056 10,014
8/21/2004 10,056 10,014
8/22/2004 10,056 10,014
8/23/2004 10,016 9,976
8/24/2004 10,024 9,982
8/25/2004 10,100 10,060
8/26/2004 10,108 10,070
8/27/2004 10,128 10,090
8/28/2004 10,128 10,090
8/29/2004 10,128 10,090
8/30/2004 10,064 10,025
8/31/2004 10,128 10,087
9/1/2004 10,136 10,090
9/2/2004 10,260 10,199
9/3/2004 10,236 10,178
9/4/2004 10,236 10,178
9/5/2004 10,236 10,178
9/6/2004 10,236 10,178
9/7/2004 10,316 10,258
9/8/2004 10,256 10,195
9/9/2004 10,276 10,216
9/10/2004 10,308 10,254
9/11/2004 10,308 10,254
9/12/2004 10,308 10,254
9/13/2004 10,324 10,268
9/14/2004 10,340 10,284
9/15/2004 10,276 10,219
9/16/2004 10,336 10,282
9/17/2004 10,376 10,322
9/18/2004 10,376 10,322
9/19/2004 10,376 10,322
9/20/2004 10,320 10,267
9/21/2004 10,412 10,359
9/22/2004 10,284 10,231
9/23/2004 10,220 10,170
9/24/2004 10,260 10,215
9/25/2004 10,260 10,215
9/26/2004 10,260 10,215
9/27/2004 10,188 10,155
9/28/2004 10,248 10,212
9/29/2004 10,264 10,228
9/30/2004 10,300 10,264
10/1/2004 10,448 10,417
10/2/2004 10,448 10,417
10/3/2004 10,448 10,417
10/4/2004 10,484 10,451
10/5/2004 10,472 10,442
10/6/2004 10,560 10,524
10/7/2004 10,488 10,450
10/8/2004 10,436 10,401
10/9/2004 10,436 10,401
10/10/2004 10,436 10,401
10/11/2004 10,448 10,410
10/12/2004 10,424 10,387
10/13/2004 10,324 10,287
10/14/2004 10,204 10,170
10/15/2004 10,248 10,220
10/16/2004 10,248 10,220
10/17/2004 10,248 10,220
10/18/2004 10,272 10,242
10/19/2004 10,148 10,118
10/20/2004 10,136 10,109
10/21/2004 10,156 10,128
10/22/2004 10,088 10,060
10/23/2004 10,088 10,060
10/24/2004 10,088 10,060
10/25/2004 10,104 10,077
10/26/2004 10,276 10,249
10/27/2004 10,360 10,334
10/28/2004 10,388 10,355
10/29/2004 10,432 10,400
10/30/2004 10,432 10,400
10/31/2004 10,432 10,400
11/1/2004 10,448 10,419
11/2/2004 10,440 10,410
11/3/2004 10,548 10,517
11/4/2004 10,740 10,706
11/5/2004 10,764 10,732
11/6/2004 10,764 10,732
11/7/2004 10,764 10,732
11/8/2004 10,740 10,708
11/9/2004 10,732 10,697
11/10/2004 10,744 10,708
11/11/2004 10,836 10,800
11/12/2004 10,944 10,908
11/13/2004 10,944 10,908
11/14/2004 10,944 10,908
11/15/2004 10,912 10,879
11/16/2004 10,836 10,802
11/17/2004 10,896 10,860
11/18/2004 10,908 10,870
11/19/2004 10,804 10,769
11/20/2004 10,804 10,769
11/21/2004 10,804 10,769
11/22/2004 10,892 10,859
11/23/2004 10,924 10,889
11/24/2004 10,972 10,939
11/25/2004 10,972 10,939
11/26/2004 10,992 10,957
11/27/2004 10,992 10,957
11/28/2004 10,992 10,957
11/29/2004 10,952 10,916
11/30/2004 10,920 10,884
12/1/2004 11,060 11,020
12/2/2004 11,004 10,965
12/3/2004 11,004 10,967
12/4/2004 11,004 10,967
12/5/2004 11,004 10,967
12/6/2004 11,012 10,975
12/7/2004 10,888 10,851
12/8/2004 10,928 10,887
12/9/2004 10,984 10,945
12/10/2004 10,976 10,940
12/11/2004 10,976 10,940
12/12/2004 10,976 10,940
12/13/2004 11,088 11,049
12/14/2004 11,120 11,084
12/15/2004 11,152 11,116
12/16/2004 11,108 11,074
12/17/2004 11,056 11,024
12/18/2004 11,056 11,024
12/19/2004 11,056 11,024
12/20/2004 11,044 11,015
12/21/2004 11,156 11,127
12/22/2004 11,208 11,179
12/23/2004 11,208 11,179
12/24/2004 11,208 11,179
12/25/2004 11,208 11,179
12/26/2004 11,208 11,179
12/27/2004 11,168 11,142
12/28/2004 11,252 11,223
12/29/2004 11,260 11,230
12/30/2004 11,261 11,230
12/31/2004 11,249 11,221
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND 12.49%
S&P 500/BARRA VALUE INDEX 12.21%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500/BARRA VALUE INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
LARGE-CAP VALUE FUND S&P 500/BARRA VALUE INDEX
-------------------- -------------------------
OTHER 6.2% 6.8%
FINANCIALS 38.6% 39.2%
CONSUMER DISCRETIONARY 13.3% 13.4%
INFORMATION TECHNOLOGY 7.9% 7.6%
INDUSTRIALS 7.9% 7.9%
HEALTH CARE 7.7% 7.3%
ENERGY 6.8% 6.7%
TELECOMMUNICATION SERVICES 5.8% 5.8%
UTILITIES 5.3% 5.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Citigroup, Inc. 4.4%
Pfizer, Inc. 3.6%
Bank of America Corp. 3.3%
American International Group, Inc. 3.0%
JPMorgan Chase & Co. 2.4%
Verizon Communications, Inc. 2.0%
ChevronTexaco Corp. 2.0%
Wells Fargo & Co. 1.8%
Time Warner, Inc. 1.6%
SBC Communications, Inc. 1.5%
- ------------------------------------------------------
Top Ten Total 25.6%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small cap growth securities. The Fund's current benchmark is the
S&P SmallCap 600/Barra Growth Index.
Inception: May 3, 2004
Value stocks showed staying power in 2004, outperforming growth stocks. This
hurt the Rydex growth funds. Fortunately for Rydex Small-Cap Growth Fund,
however, small-caps were strong performers during the period. Rydex Small-Cap
Growth Fund returned 15.82%, which, accounting for fees, was in line with its
benchmark, the S&P SmallCap 600/Barra Growth Index, which returned 17.33%. For
the year ended December 31, 2004, the Fund achieved a daily correlation of more
than 0.99 to its benchmark of the daily price performance of the S&P SmallCap
600/Barra Growth Index. The effects of compounding may cause the longer-term
correlation of the Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE SMALL-CAP GROWTH FUND S&P SMALLCAP 600/BARRA GROWTH INDEX
- ---- --------------------- -----------------------------------
5/3/2004 10,000 10,000
5/4/2004 10,056 10,056
5/5/2004 10,104 10,105
5/6/2004 9,976 9,975
5/7/2004 9,748 9,748
5/8/2004 9,748 9,748
5/9/2004 9,748 9,748
5/10/2004 9,560 9,550
5/11/2004 9,752 9,746
5/12/2004 9,752 9,745
5/13/2004 9,720 9,713
5/14/2004 9,664 9,656
5/15/2004 9,664 9,656
5/16/2004 9,664 9,656
5/17/2004 9,520 9,513
5/18/2004 9,628 9,621
5/19/2004 9,616 9,610
5/20/2004 9,612 9,607
5/21/2004 9,704 9,701
5/22/2004 9,704 9,701
5/23/2004 9,704 9,701
5/24/2004 9,804 9,799
5/25/2004 10,060 10,057
5/26/2004 10,112 10,108
5/27/2004 10,112 10,102
5/28/2004 10,096 10,085
5/29/2004 10,096 10,085
5/30/2004 10,096 10,085
5/31/2004 10,096 10,085
6/1/2004 10,168 10,160
6/2/2004 10,204 10,196
6/3/2004 10,028 10,015
6/4/2004 10,120 10,116
6/5/2004 10,120 10,116
6/6/2004 10,120 10,116
6/7/2004 10,308 10,307
6/8/2004 10,324 10,324
6/9/2004 10,204 10,200
6/10/2004 10,192 10,188
6/11/2004 10,192 10,188
6/12/2004 10,192 10,188
6/13/2004 10,192 10,188
6/14/2004 10,044 10,041
6/15/2004 10,224 10,220
6/16/2004 10,304 10,302
6/17/2004 10,288 10,284
6/18/2004 10,284 10,282
6/19/2004 10,284 10,282
6/20/2004 10,284 10,282
6/21/2004 10,268 10,265
6/22/2004 10,336 10,333
6/23/2004 10,468 10,458
6/24/2004 10,460 10,448
6/25/2004 10,556 10,551
6/26/2004 10,556 10,551
6/27/2004 10,556 10,551
6/28/2004 10,492 10,481
6/29/2004 10,576 10,563
6/30/2004 10,648 10,644
7/1/2004 10,488 10,501
7/2/2004 10,444 10,461
7/3/2004 10,444 10,461
7/4/2004 10,444 10,461
7/5/2004 10,444 10,461
7/6/2004 10,272 10,306
7/7/2004 10,232 10,272
7/8/2004 10,072 10,114
7/9/2004 10,100 10,146
7/10/2004 10,100 10,146
7/11/2004 10,100 10,146
7/12/2004 10,036 10,090
7/13/2004 10,048 10,105
7/14/2004 9,984 10,045
7/15/2004 10,040 10,096
7/16/2004 9,960 10,023
7/17/2004 9,960 10,023
7/18/2004 9,960 10,023
7/19/2004 9,924 9,995
7/20/2004 10,068 10,131
7/21/2004 9,820 9,872
7/22/2004 9,796 9,842
7/23/2004 9,664 9,710
7/24/2004 9,664 9,710
7/25/2004 9,664 9,710
7/26/2004 9,560 9,603
7/27/2004 9,748 9,796
7/28/2004 9,708 9,754
7/29/2004 9,868 9,919
7/30/2004 9,924 9,978
7/31/2004 9,924 9,978
8/1/2004 9,924 9,978
8/2/2004 9,920 9,972
8/3/2004 9,784 9,836
8/4/2004 9,748 9,798
8/5/2004 9,556 9,605
8/6/2004 9,284 9,332
8/7/2004 9,284 9,332
8/8/2004 9,284 9,332
8/9/2004 9,300 9,347
8/10/2004 9,456 9,508
8/11/2004 9,440 9,488
8/12/2004 9,244 9,291
8/13/2004 9,244 9,292
8/14/2004 9,244 9,292
8/15/2004 9,244 9,292
8/16/2004 9,428 9,478
8/17/2004 9,464 9,515
8/18/2004 9,652 9,706
8/19/2004 9,628 9,680
8/20/2004 9,772 9,826
8/21/2004 9,772 9,826
8/22/2004 9,772 9,826
8/23/2004 9,720 9,775
8/24/2004 9,700 9,755
8/25/2004 9,768 9,822
8/26/2004 9,732 9,789
8/27/2004 9,808 9,866
8/28/2004 9,808 9,866
8/29/2004 9,808 9,866
8/30/2004 9,672 9,726
8/31/2004 9,704 9,762
9/1/2004 9,820 9,877
9/2/2004 9,952 10,011
9/3/2004 9,912 9,977
9/4/2004 9,912 9,977
9/5/2004 9,912 9,977
9/6/2004 9,912 9,977
9/7/2004 10,024 10,091
9/8/2004 9,932 9,998
9/9/2004 10,056 10,127
9/10/2004 10,140 10,211
9/11/2004 10,140 10,211
9/12/2004 10,140 10,211
9/13/2004 10,216 10,290
9/14/2004 10,208 10,282
9/15/2004 10,152 10,223
9/16/2004 10,232 10,308
9/17/2004 10,212 10,288
9/18/2004 10,212 10,288
9/19/2004 10,212 10,288
9/20/2004 10,192 10,271
9/21/2004 10,324 10,402
9/22/2004 10,104 10,181
9/23/2004 10,108 10,184
9/24/2004 10,132 10,209
9/25/2004 10,132 10,209
9/26/2004 10,132 10,209
9/27/2004 9,972 10,048
9/28/2004 10,108 10,184
9/29/2004 10,236 10,316
9/30/2004 10,228 10,306
10/1/2004 10,416 10,499
10/2/2004 10,416 10,499
10/3/2004 10,416 10,499
10/4/2004 10,484 10,569
10/5/2004 10,444 10,531
10/6/2004 10,524 10,611
10/7/2004 10,384 10,472
10/8/2004 10,216 10,304
10/9/2004 10,216 10,304
10/10/2004 10,216 10,304
10/11/2004 10,252 10,340
10/12/2004 10,232 10,318
10/13/2004 10,132 10,218
10/14/2004 10,084 10,168
10/15/2004 10,152 10,239
10/16/2004 10,152 10,239
10/17/2004 10,152 10,239
10/18/2004 10,180 10,270
10/19/2004 10,132 10,223
10/20/2004 10,208 10,303
10/21/2004 10,340 10,436
10/22/2004 10,212 10,311
10/23/2004 10,212 10,311
10/24/2004 10,212 10,311
10/25/2004 10,264 10,367
10/26/2004 10,360 10,467
10/27/2004 10,528 10,638
10/28/2004 10,480 10,587
10/29/2004 10,496 10,604
10/30/2004 10,496 10,604
10/31/2004 10,496 10,604
11/1/2004 10,532 10,645
11/2/2004 10,504 10,616
11/3/2004 10,700 10,814
11/4/2004 10,844 10,962
11/5/2004 10,932 11,054
11/6/2004 10,932 11,054
11/7/2004 10,932 11,054
11/8/2004 10,884 11,002
11/9/2004 10,932 11,053
11/10/2004 10,968 11,090
11/11/2004 11,068 11,190
11/12/2004 11,164 11,289
11/13/2004 11,164 11,289
11/14/2004 11,164 11,289
11/15/2004 11,176 11,301
11/16/2004 11,052 11,178
11/17/2004 11,160 11,285
11/18/2004 11,140 11,266
11/19/2004 10,964 11,091
11/20/2004 10,964 11,091
11/21/2004 10,964 11,091
11/22/2004 11,128 11,255
11/23/2004 11,184 11,315
11/24/2004 11,260 11,391
11/25/2004 11,260 11,391
11/26/2004 11,276 11,408
11/27/2004 11,276 11,408
11/28/2004 11,276 11,408
11/29/2004 11,320 11,453
11/30/2004 11,312 11,445
12/1/2004 11,440 11,571
12/2/2004 11,412 11,544
12/3/2004 11,392 11,528
12/4/2004 11,392 11,528
12/5/2004 11,392 11,528
12/6/2004 11,328 11,460
12/7/2004 11,076 11,208
12/8/2004 11,160 11,293
12/9/2004 11,132 11,269
12/10/2004 11,164 11,303
12/11/2004 11,164 11,303
12/12/2004 11,164 11,303
12/13/2004 11,272 11,409
12/14/2004 11,372 11,513
12/15/2004 11,432 11,576
12/16/2004 11,368 11,508
12/17/2004 11,364 11,505
12/18/2004 11,364 11,505
12/19/2004 11,364 11,505
12/20/2004 11,316 11,457
12/21/2004 11,460 11,603
12/22/2004 11,512 11,657
12/23/2004 11,528 11,677
12/24/2004 11,528 11,677
12/25/2004 11,528 11,677
12/26/2004 11,528 11,677
12/27/2004 11,400 11,547
12/28/2004 11,612 11,763
12/29/2004 11,608 11,756
12/30/2004 11,598 11,747
12/31/2004 11,582 11,733
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND 15.82%
S&P SMALLCAP 600/BARRA GROWTH INDEX 17.33%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P SMALLCAP 600/BARRA GROWTH
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
S&P SMALLCAP 600/BARRA
SMALL-CAP GROWTH FUND GROWTH INDEX
--------------------- ------------
OTHER 9.7% 5.2%
CONSUMER DISCRETIONARY 19.8% 20.1%
INFORMATION TECHNOLOGY 17.8% 17.5%
INDUSTRIALS 16.8% 16.2%
HEALTH CARE 16.7% 17.4%
FINANCIALS 11.0% 9.9%
ENERGY 7.7% 7.7%
MATERIALS 6.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
NVR, Inc. 1.7%
New Century Financial Corp. 1.3%
Polaris Industries, Inc. 1.1%
Massey Energy Co. 1.0%
Patina Oil & Gas Corp. 1.0%
Florida Rock Industries, Inc. 1.0%
Roper Industries, Inc. 1.0%
First Bancorp/Puerto Rico 1.0%
Oshkosh Truck Corp. 0.9%
Pharmaceutical Product
Development, Inc. 0.9%
- ------------------------------------------------------
Top Ten Total 10.9%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for mid cap growth securities. The Fund's current benchmark is the S&P
MidCap 400/Barra Growth Index.
Inception: May 3, 2004
As the market favored value to growth over the period, growth funds suffered.
And while mid-caps didn't perform as well as small-caps during the period, they
did outperform large-caps. The energy and utilities sectors, which returned
34.9% and 25.2%, respectively, helped Rydex Mid-Cap Growth Fund hand in 8.52%,
which, after accounting for fees, was in line with the S&P MidCap 400/Barra
Growth Index's return of 10.36% for the same time period. For the year ended
December 31, 2004, the Fund achieved a daily correlation of 1.00 to its
benchmark of the daily price performance of the S&P Midcap 400/Barra Growth
Index. The effects of compounding may cause the longer-term correlation of the
Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE MID-CAP GROWTH FUND S&P MIDCAP 400/BARRA GROWTH INDEX
- ---- ------------------- ---------------------------------
5/3/2004 10,000 10,000
5/4/2004 10,016 10,018
5/5/2004 10,092 10,095
5/6/2004 9,952 9,954
5/7/2004 9,748 9,746
5/8/2004 9,748 9,746
5/9/2004 9,748 9,746
5/10/2004 9,588 9,582
5/11/2004 9,732 9,729
5/12/2004 9,696 9,691
5/13/2004 9,700 9,695
5/14/2004 9,640 9,637
5/15/2004 9,640 9,637
5/16/2004 9,640 9,637
5/17/2004 9,524 9,520
5/18/2004 9,632 9,629
5/19/2004 9,608 9,607
5/20/2004 9,592 9,589
5/21/2004 9,652 9,650
5/22/2004 9,652 9,650
5/23/2004 9,652 9,650
5/24/2004 9,740 9,739
5/25/2004 9,932 9,933
5/26/2004 9,980 9,984
5/27/2004 10,040 10,043
5/28/2004 10,092 10,097
5/29/2004 10,092 10,097
5/30/2004 10,092 10,097
5/31/2004 10,092 10,097
6/1/2004 10,136 10,141
6/2/2004 10,112 10,119
6/3/2004 9,960 9,964
6/4/2004 10,024 10,033
6/5/2004 10,024 10,033
6/6/2004 10,024 10,033
6/7/2004 10,204 10,215
6/8/2004 10,192 10,202
6/9/2004 10,064 10,072
6/10/2004 10,080 10,093
6/11/2004 10,080 10,093
6/12/2004 10,080 10,093
6/13/2004 10,080 10,093
6/14/2004 9,928 9,937
6/15/2004 10,052 10,065
6/16/2004 10,072 10,084
6/17/2004 10,036 10,049
6/18/2004 10,032 10,042
6/19/2004 10,032 10,042
6/20/2004 10,032 10,042
6/21/2004 9,988 10,004
6/22/2004 10,048 10,064
6/23/2004 10,124 10,144
6/24/2004 10,108 10,131
6/25/2004 10,156 10,185
6/26/2004 10,156 10,185
6/27/2004 10,156 10,185
6/28/2004 10,108 10,135
6/29/2004 10,136 10,170
6/30/2004 10,200 10,238
7/1/2004 10,080 10,119
7/2/2004 10,036 10,083
7/3/2004 10,036 10,083
7/4/2004 10,036 10,083
7/5/2004 10,036 10,083
7/6/2004 9,892 9,940
7/7/2004 9,940 9,983
7/8/2004 9,808 9,851
7/9/2004 9,852 9,898
7/10/2004 9,852 9,898
7/11/2004 9,852 9,898
7/12/2004 9,808 9,854
7/13/2004 9,808 9,853
7/14/2004 9,752 9,800
7/15/2004 9,808 9,858
7/16/2004 9,708 9,770
7/17/2004 9,708 9,770
7/18/2004 9,708 9,770
7/19/2004 9,716 9,775
7/20/2004 9,852 9,909
7/21/2004 9,644 9,699
7/22/2004 9,644 9,695
7/23/2004 9,524 9,569
7/24/2004 9,524 9,569
7/25/2004 9,524 9,569
7/26/2004 9,424 9,468
7/27/2004 9,576 9,625
7/28/2004 9,516 9,561
7/29/2004 9,644 9,696
7/30/2004 9,668 9,723
7/31/2004 9,668 9,723
8/1/2004 9,668 9,723
8/2/2004 9,648 9,702
8/3/2004 9,532 9,584
8/4/2004 9,488 9,537
8/5/2004 9,304 9,350
8/6/2004 9,132 9,172
8/7/2004 9,132 9,172
8/8/2004 9,132 9,172
8/9/2004 9,148 9,185
8/10/2004 9,300 9,340
8/11/2004 9,244 9,282
8/12/2004 9,112 9,148
8/13/2004 9,104 9,141
8/14/2004 9,104 9,141
8/15/2004 9,104 9,141
8/16/2004 9,248 9,288
8/17/2004 9,296 9,336
8/18/2004 9,440 9,483
8/19/2004 9,372 9,416
8/20/2004 9,508 9,556
8/21/2004 9,508 9,556
8/22/2004 9,508 9,556
8/23/2004 9,448 9,493
8/24/2004 9,456 9,503
8/25/2004 9,548 9,594
8/26/2004 9,548 9,596
8/27/2004 9,600 9,647
8/28/2004 9,600 9,647
8/29/2004 9,600 9,647
8/30/2004 9,492 9,539
8/31/2004 9,548 9,595
9/1/2004 9,632 9,679
9/2/2004 9,732 9,783
9/3/2004 9,680 9,723
9/4/2004 9,680 9,723
9/5/2004 9,680 9,723
9/6/2004 9,680 9,723
9/7/2004 9,732 9,784
9/8/2004 9,676 9,726
9/9/2004 9,728 9,784
9/10/2004 9,792 9,849
9/11/2004 9,792 9,849
9/12/2004 9,792 9,849
9/13/2004 9,868 9,926
9/14/2004 9,848 9,911
9/15/2004 9,792 9,854
9/16/2004 9,836 9,898
9/17/2004 9,812 9,878
9/18/2004 9,812 9,878
9/19/2004 9,812 9,878
9/20/2004 9,772 9,838
9/21/2004 9,848 9,913
9/22/2004 9,708 9,776
9/23/2004 9,680 9,748
9/24/2004 9,704 9,811
9/25/2004 9,704 9,811
9/26/2004 9,704 9,811
9/27/2004 9,580 9,686
9/28/2004 9,652 9,760
9/29/2004 9,712 9,821
9/30/2004 9,756 9,869
10/1/2004 9,892 10,011
10/2/2004 9,892 10,011
10/3/2004 9,892 10,011
10/4/2004 9,960 10,079
10/5/2004 9,924 10,045
10/6/2004 9,972 10,095
10/7/2004 9,856 9,978
10/8/2004 9,776 9,898
10/9/2004 9,776 9,898
10/10/2004 9,776 9,898
10/11/2004 9,788 9,911
10/12/2004 9,740 9,864
10/13/2004 9,688 9,810
10/14/2004 9,592 9,719
10/15/2004 9,628 9,755
10/16/2004 9,628 9,755
10/17/2004 9,628 9,755
10/18/2004 9,712 9,841
10/19/2004 9,648 9,779
10/20/2004 9,716 9,845
10/21/2004 9,816 9,948
10/22/2004 9,696 9,832
10/23/2004 9,696 9,832
10/24/2004 9,696 9,832
10/25/2004 9,704 9,841
10/26/2004 9,740 9,878
10/27/2004 9,936 10,077
10/28/2004 9,936 10,077
10/29/2004 9,960 10,104
10/30/2004 9,960 10,104
10/31/2004 9,960 10,104
11/1/2004 9,936 10,078
11/2/2004 9,924 10,069
11/3/2004 10,044 10,189
11/4/2004 10,176 10,326
11/5/2004 10,224 10,377
11/6/2004 10,224 10,377
11/7/2004 10,224 10,377
11/8/2004 10,184 10,336
11/9/2004 10,216 10,367
11/10/2004 10,240 10,391
11/11/2004 10,340 10,493
11/12/2004 10,440 10,597
11/13/2004 10,440 10,597
11/14/2004 10,440 10,597
11/15/2004 10,440 10,595
11/16/2004 10,364 10,521
11/17/2004 10,448 10,608
11/18/2004 10,428 10,589
11/19/2004 10,288 10,448
11/20/2004 10,288 10,448
11/21/2004 10,288 10,448
11/22/2004 10,340 10,505
11/23/2004 10,388 10,552
11/24/2004 10,472 10,639
11/25/2004 10,472 10,639
11/26/2004 10,472 10,641
11/27/2004 10,472 10,641
11/28/2004 10,472 10,641
11/29/2004 10,452 10,620
11/30/2004 10,408 10,575
12/1/2004 10,576 10,745
12/2/2004 10,552 10,721
12/3/2004 10,568 10,741
12/4/2004 10,568 10,741
12/5/2004 10,568 10,741
12/6/2004 10,556 10,729
12/7/2004 10,396 10,566
12/8/2004 10,476 10,648
12/9/2004 10,516 10,687
12/10/2004 10,504 10,677
12/11/2004 10,504 10,677
12/12/2004 10,504 10,677
12/13/2004 10,572 10,746
12/14/2004 10,680 10,856
12/15/2004 10,712 10,890
12/16/2004 10,652 10,824
12/17/2004 10,648 10,825
12/18/2004 10,648 10,825
12/19/2004 10,648 10,825
12/20/2004 10,616 10,793
12/21/2004 10,728 10,908
12/22/2004 10,764 10,945
12/23/2004 10,784 10,964
12/24/2004 10,784 10,964
12/25/2004 10,784 10,964
12/26/2004 10,784 10,964
12/27/2004 10,712 10,894
12/28/2004 10,856 11,042
12/29/2004 10,864 11,046
12/30/2004 10,872 11,055
12/31/2004 10,852 11,036
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND 8.52%
S&P MIDCAP 400/BARRA GROWTH INDEX 10.36%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400/BARRA GROWTH
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
S&P MIDCAP 400/BARRA
MID-CAP GROWTH FUND GROWTH INDEX
------------------- ------------
OTHER 10.4% 10.3%
CONSUMER DISCRETIONARY 21.5% 22.2%
INDUSTRIALS 16.9% 16.9%
INFORMATION TECHNOLOGY 16.0% 15.8%
HEALTH CARE 15.8% 15.6%
FINANCIALS 12.5% 12.7%
ENERGY 6.5% 6.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Harman International Industries, Inc. 1.6%
Washington Post - Class B 1.5%
Murphy Oil Corp. 1.4%
Legg Mason, Inc. 1.4%
Lyondell Chemical Co. 1.3%
Sepracor, Inc. 1.2%
Patterson Cos., Inc. 1.1%
Expeditors International
Washington, Inc. 1.1%
Whole Foods Market, Inc. 1.1%
Varian Medical Systems, Inc. 1.1%
- ------------------------------------------------------
Top Ten Total 12.8%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for large cap growth securities. The Fund's current benchmark is the
S&P 500/Barra Growth Index.
Inception: May 3, 2004
There was not a lot of good news for Rydex Large-Cap Growth Fund during the
period, as value outperformed growth and large-cap stocks were the worst
performers of the three market capitalizations. The technology and health care
sectors were another drag on the Fund, which returned 4.26% during the period.
The Fund's benchmark, the S&P 500/Barra Growth Index, returned 4.71%. For the
year ended December 31, 2004, the Fund achieved a daily correlation of more than
0.99 to its benchmark of the daily price performance of the S&P 500/Barra Growth
Index. The effects of compounding may cause the longer-term correlation of the
Fund to its benchmark to diminish.(1)
(1) 1.00 EQUALS PERFECT CORRELATION. THIS CALCULATION IS BASED ON THE DAILY
PRICE RETURN OF AN INDEX.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
DATE LARGE-CAP GROWTH FUND S&P 500/BARRA GROWTH INDEX
- ---- --------------------- --------------------------
5/3/2004 10,000 10,000
5/4/2004 10,004 10,011
5/5/2004 10,024 10,030
5/6/2004 9,984 9,991
5/7/2004 9,908 9,913
5/8/2004 9,908 9,913
5/9/2004 9,908 9,913
5/10/2004 9,852 9,855
5/11/2004 9,916 9,921
5/12/2004 9,896 9,897
5/13/2004 9,880 9,880
5/14/2004 9,848 9,846
5/15/2004 9,848 9,846
5/16/2004 9,848 9,846
5/17/2004 9,760 9,761
5/18/2004 9,820 9,820
5/19/2004 9,784 9,780
5/20/2004 9,788 9,781
5/21/2004 9,816 9,814
5/22/2004 9,816 9,814
5/23/2004 9,816 9,814
5/24/2004 9,800 9,799
5/25/2004 9,956 9,954
5/26/2004 9,980 9,980
5/27/2004 10,064 10,064
5/28/2004 10,048 10,050
5/29/2004 10,048 10,050
5/30/2004 10,048 10,050
5/31/2004 10,048 10,050
6/1/2004 10,056 10,056
6/2/2004 10,084 10,083
6/3/2004 10,016 10,017
6/4/2004 10,068 10,069
6/5/2004 10,068 10,069
6/6/2004 10,068 10,069
6/7/2004 10,228 10,230
6/8/2004 10,260 10,263
6/9/2004 10,164 10,163
6/10/2004 10,192 10,195
6/11/2004 10,192 10,195
6/12/2004 10,192 10,195
6/13/2004 10,192 10,195
6/14/2004 10,116 10,115
6/15/2004 10,180 10,179
6/16/2004 10,180 10,179
6/17/2004 10,148 10,146
6/18/2004 10,164 10,163
6/19/2004 10,164 10,163
6/20/2004 10,164 10,163
6/21/2004 10,116 10,122
6/22/2004 10,160 10,162
6/23/2004 10,240 10,247
6/24/2004 10,200 10,205
6/25/2004 10,124 10,125
6/26/2004 10,124 10,125
6/27/2004 10,124 10,125
6/28/2004 10,128 10,133
6/29/2004 10,168 10,174
6/30/2004 10,200 10,207
7/1/2004 10,080 10,086
7/2/2004 10,032 10,036
7/3/2004 10,032 10,036
7/4/2004 10,032 10,036
7/5/2004 10,032 10,036
7/6/2004 9,944 9,953
7/7/2004 9,960 9,970
7/8/2004 9,884 9,891
7/9/2004 9,920 9,930
7/10/2004 9,920 9,930
7/11/2004 9,920 9,930
7/12/2004 9,920 9,930
7/13/2004 9,928 9,941
7/14/2004 9,880 9,895
7/15/2004 9,836 9,852
7/16/2004 9,764 9,782
7/17/2004 9,764 9,782
7/18/2004 9,764 9,782
7/19/2004 9,740 9,760
7/20/2004 9,820 9,838
7/21/2004 9,680 9,699
7/22/2004 9,720 9,737
7/23/2004 9,576 9,594
7/24/2004 9,576 9,594
7/25/2004 9,576 9,594
7/26/2004 9,548 9,568
7/27/2004 9,644 9,667
7/28/2004 9,644 9,664
7/29/2004 9,676 9,697
7/30/2004 9,696 9,719
7/31/2004 9,696 9,719
8/1/2004 9,696 9,719
8/2/2004 9,740 9,764
8/3/2004 9,652 9,674
8/4/2004 9,664 9,685
8/5/2004 9,484 9,512
8/6/2004 9,324 9,354
8/7/2004 9,324 9,354
8/8/2004 9,324 9,354
8/9/2004 9,332 9,361
8/10/2004 9,456 9,489
8/11/2004 9,432 9,458
8/12/2004 9,332 9,356
8/13/2004 9,352 9,379
8/14/2004 9,352 9,379
8/15/2004 9,352 9,379
8/16/2004 9,460 9,487
8/17/2004 9,484 9,513
8/18/2004 9,612 9,641
8/19/2004 9,572 9,597
8/20/2004 9,616 9,644
8/21/2004 9,616 9,644
8/22/2004 9,616 9,644
8/23/2004 9,616 9,633
8/24/2004 9,620 9,636
8/25/2004 9,696 9,716
8/26/2004 9,688 9,708
8/27/2004 9,716 9,735
8/28/2004 9,716 9,735
8/29/2004 9,716 9,735
8/30/2004 9,628 9,647
8/31/2004 9,656 9,675
9/1/2004 9,684 9,703
9/2/2004 9,796 9,816
9/3/2004 9,732 9,753
9/4/2004 9,732 9,753
9/5/2004 9,732 9,753
9/6/2004 9,732 9,753
9/7/2004 9,776 9,810
9/8/2004 9,752 9,783
9/9/2004 9,764 9,800
9/10/2004 9,820 9,861
9/11/2004 9,820 9,861
9/12/2004 9,820 9,861
9/13/2004 9,840 9,881
9/14/2004 9,868 9,910
9/15/2004 9,792 9,832
9/16/2004 9,784 9,825
9/17/2004 9,832 9,876
9/18/2004 9,832 9,876
9/19/2004 9,832 9,876
9/20/2004 9,772 9,818
9/21/2004 9,804 9,852
9/22/2004 9,656 9,698
9/23/2004 9,628 9,667
9/24/2004 9,628 9,653
9/25/2004 9,628 9,653
9/26/2004 9,628 9,653
9/27/2004 9,572 9,595
9/28/2004 9,632 9,655
9/29/2004 9,700 9,723
9/30/2004 9,660 9,684
10/1/2004 9,804 9,834
10/2/2004 9,804 9,834
10/3/2004 9,804 9,834
10/4/2004 9,836 9,865
10/5/2004 9,832 9,862
10/6/2004 9,884 9,916
10/7/2004 9,756 9,785
10/8/2004 9,652 9,682
10/9/2004 9,652 9,682
10/10/2004 9,652 9,682
10/11/2004 9,680 9,714
10/12/2004 9,660 9,690
10/13/2004 9,612 9,644
10/14/2004 9,544 9,575
10/15/2004 9,580 9,613
10/16/2004 9,580 9,613
10/17/2004 9,580 9,613
10/18/2004 9,664 9,695
10/19/2004 9,596 9,627
10/20/2004 9,612 9,643
10/21/2004 9,644 9,675
10/22/2004 9,520 9,551
10/23/2004 9,520 9,551
10/24/2004 9,520 9,551
10/25/2004 9,484 9,517
10/26/2004 9,604 9,636
10/27/2004 9,772 9,807
10/28/2004 9,788 9,822
10/29/2004 9,792 9,828
10/30/2004 9,792 9,828
10/31/2004 9,792 9,828
11/1/2004 9,780 9,814
11/2/2004 9,788 9,824
11/3/2004 9,908 9,943
11/4/2004 10,048 10,084
11/5/2004 10,100 10,139
11/6/2004 10,100 10,139
11/7/2004 10,100 10,139
11/8/2004 10,100 10,140
11/9/2004 10,100 10,137
11/10/2004 10,072 10,104
11/11/2004 10,164 10,201
11/12/2004 10,248 10,285
11/13/2004 10,248 10,285
11/14/2004 10,248 10,285
11/15/2004 10,272 10,308
11/16/2004 10,200 10,235
11/17/2004 10,260 10,293
11/18/2004 10,276 10,312
11/19/2004 10,140 10,176
11/20/2004 10,140 10,176
11/21/2004 10,140 10,176
11/22/2004 10,172 10,210
11/23/2004 10,136 10,175
11/24/2004 10,172 10,211
11/25/2004 10,172 10,211
11/26/2004 10,168 10,209
11/27/2004 10,168 10,209
11/28/2004 10,168 10,209
11/29/2004 10,140 10,177
11/30/2004 10,084 10,124
12/1/2004 10,264 10,302
12/2/2004 10,296 10,338
12/3/2004 10,308 10,352
12/4/2004 10,308 10,352
12/5/2004 10,308 10,352
12/6/2004 10,284 10,327
12/7/2004 10,172 10,216
12/8/2004 10,240 10,282
12/9/2004 10,296 10,339
12/10/2004 10,280 10,322
12/11/2004 10,280 10,322
12/12/2004 10,280 10,322
12/13/2004 10,360 10,405
12/14/2004 10,408 10,453
12/15/2004 10,416 10,462
12/16/2004 10,416 10,460
12/17/2004 10,304 10,349
12/18/2004 10,304 10,349
12/19/2004 10,304 10,349
12/20/2004 10,320 10,365
12/21/2004 10,404 10,447
12/22/2004 10,432 10,470
12/23/2004 10,440 10,479
12/24/2004 10,440 10,479
12/25/2004 10,440 10,479
12/26/2004 10,440 10,479
12/27/2004 10,384 10,424
12/28/2004 10,456 10,497
12/29/2004 10,448 10,489
12/30/2004 10,447 10,490
12/31/2004 10,426 10,471
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(05/03/04)
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND 4.26%
S&P 500/BARRA GROWTH INDEX 4.71%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500/BARRA GROWTH INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
LARGE-CAP GROWTH FUND S&P 500/BARRA GROWTH INDEX
--------------------- --------------------------
OTHER 6.2% 6.2%
INFORMATION TECHNOLOGY 24.2% 24.2%
CONSUMER STAPLES 18.3% 18.5%
HEALTH CARE 17.6% 17.6%
INDUSTRIALS 15.5% 15.8%
CONSUMER DISCRETIONARY 10.2% 10.4%
ENERGY 7.5% 7.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
General Electric Co. 6.9%
Exxon Mobil Corp. 5.9%
Microsoft Corp. 5.2%
Wal-Mart Stores, Inc. 4.0%
Johnson & Johnson 3.4%
International Business Machines Corp. 2.9%
Intel Corp. 2.7%
Procter & Gamble Co. 2.5%
Cisco Systems, Inc. 2.3%
Altria Group, Inc. 2.3%
- ------------------------------------------------------
Top Ten Total 38.1%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
OBJECTIVE: Seeks long term capital appreciation.
Inception: May 1, 2002
In 2004, the Fund's value and growth exposures were comparable to the S&P 500
Index's, and Rydex Sector Rotation Fund's return of 10.71% fell between the
Index's price return of 8.99% and total return of 10.89%. Sector overweights in
internet software and services, hotels, restaurants and leisure, energy
equipment and services and building products were beneficial to performance, as
were underweights in semiconductors, pharmaceuticals and media sectors, which
struggled in 2004. Being at the right place at the wrong time detracted from
performance, as the Fund owned securities in some sectors that performed well,
such as construction and engineering and personal products, at the wrong time.
In general, the smaller the capitalization, the better the performer in 2004,
and value generally bested growth.
CUMULATIVE FUND PERFORMANCE: MAY 1, 2002 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
SECTOR ROTATION
DATE FUND S&P 500 INDEX
- ---- --------------- -------------
5/1/2002 10,000 10,000
5/31/2002 9,860 9,838
6/30/2002 9,400 9,137
7/31/2002 8,520 8,425
8/31/2002 8,410 8,480
9/30/2002 7,740 7,559
10/31/2002 7,830 8,224
11/30/2002 8,240 8,708
12/31/2002 7,760 8,196
1/31/2003 7,520 7,982
2/28/2003 7,410 7,862
3/31/2003 7,550 7,938
4/30/2003 7,990 8,592
5/31/2003 8,710 9,045
6/30/2003 8,660 9,160
7/31/2003 8,940 9,322
8/31/2003 9,390 9,503
9/30/2003 9,140 9,403
10/31/2003 9,870 9,935
11/30/2003 9,960 10,022
12/31/2003 10,080 10,547
1/31/2004 10,410 10,741
2/29/2004 10,590 10,890
3/31/2004 10,370 10,726
4/30/2004 9,700 10,558
5/31/2004 9,820 10,703
6/30/2004 10,130 10,911
7/31/2004 9,660 10,550
8/31/2004 9,570 10,592
9/30/2004 9,990 10,707
10/31/2004 10,200 10,871
11/30/2004 10,790 11,310
12/31/2004 11,160 11,695
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/01/02)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND 10.71% 4.20%
S&P 500 INDEX 10.89% 6.04%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
SECTOR ROTATION FUND
UTILITIES 6.52%
HEALTH CARE 5.87%
MATERIALS 6.68%
INFORMATION TECHNOLOGY 8.72%
ENERGY 14.13%
CONSUMER DISCRETIONARY 15.87%
INDUSTRIALS 42.21%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Yahoo!, Inc. 4.2%
eBay, Inc. 2.7%
United Parcel Service, Inc. - Class B 2.4%
Masco Corp. 2.3%
W.W. Grainger, Inc. 1.8%
American Standard Cos., Inc. 1.5%
Fastenal Co. 1.5%
InterActiveCorp 1.4%
VeriSign, Inc. 1.4%
Amazon.Com, Inc. 1.4%
- ------------------------------------------------------
Top Ten Total 20.6%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: To provide security of principal, high current income, and liquidity.
Inception: May 7, 1997
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/07/97)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND 0.23% 1.72% 2.30%
- --------------------------------------------------------------------------------
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT MONEY MARKET FUND
FEDERAL HOME LOAN BANK-FADN 25.6%
FREDDIE MAC-FADN 25.5%
FANNIE MAE-FADN 18.5%
FARMER MAC-FADN 14.2%
REPURCHASE AGREEMENTS 10.2%
FEDERAL FARM CREDIT BANK-FADN 4.7%
FEDERAL AGENCY BONDS 2.3%
FADN - Federal Agency Discount Notes
The fund invests principally in U.S. Government securities.
See Notes to Financial Statements.
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
BANKING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the banking sector, including commercial banks (and their holding
companies) and savings-and-loan institutions.
Inception: May 2, 2001
Increases in the Fed funds rates during the second half of 2004 had minimal to
little effect on Rydex Banking Fund, which outperformed the S&P 500 Index for
the fourth consecutive year. Diversified banks led the outperformers in this
sector, and most sub-industries also recorded gains that beat the Index. The
exceptions were asset management and custody banks, with the former enduring
another year of investigations into trading practices at some firms by the SEC
and various states' attorney generals. Rydex Banking Fund returned 14.74% during
the period. Because large-cap banks did well, the Fund's modified cap weight
(less emphasis of the large-cap names) lessened performance.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE BANKING FUND S&P 500 INDEX
- ---- ------------ -------------
5/2/2001 10,000 10,000
5/31/2001 10,448 9,924
6/30/2001 10,464 9,682
7/31/2001 10,636 9,587
8/31/2001 10,204 8,987
9/30/2001 9,676 8,261
10/31/2001 9,124 8,419
11/30/2001 9,812 9,065
12/31/2001 10,084 9,144
1/31/2002 10,216 9,011
2/28/2002 10,248 8,837
3/31/2002 10,984 9,169
4/30/2002 11,344 8,613
5/31/2002 11,548 8,550
6/30/2002 11,148 7,941
7/31/2002 10,508 7,322
8/31/2002 10,840 7,370
9/30/2002 9,604 6,569
10/31/2002 10,017 7,147
11/30/2002 10,178 7,568
12/31/2002 10,005 7,123
1/31/2003 10,021 6,937
2/28/2003 9,897 6,832
3/31/2003 9,604 6,899
4/30/2003 10,410 7,467
5/31/2003 11,128 7,860
6/30/2003 11,096 7,961
7/31/2003 11,561 8,101
8/31/2003 11,561 8,259
9/30/2003 11,559 8,171
10/31/2003 12,654 8,634
11/30/2003 12,974 8,710
12/31/2003 13,181 9,166
1/31/2004 13,436 9,335
2/29/2004 13,830 9,464
3/31/2004 13,603 9,322
4/30/2004 12,929 9,175
5/31/2004 13,590 9,301
6/30/2004 13,566 9,482
7/31/2004 13,526 9,168
8/31/2004 13,984 9,205
9/30/2004 14,069 9,305
10/31/2004 14,298 9,447
11/30/2004 14,731 9,829
12/31/2004 15,123 10,164
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
BANKING FUND 14.74% 11.95%
S&P 500 INDEX 10.89% 0.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BANKING FUND
THRIFTS & MORTGAGE FINANCE 35%
COMMERCIAL BANKS 60%
OTHER 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
JPMorgan Chase & Co. 4.7%
Fannie Mae 4.3%
Bank of America Corp. 4.1%
Washington Mutual, Inc. 3.5%
Freddie Mac 3.4%
Fifth Third Bancorp 3.1%
National City Corp. 3.0%
Regions Financial Corp. 2.8%
Wells Fargo & Co. 2.7%
Keycorp 2.7%
- ------------------------------------------------------
Top Ten Total 34.3%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
mining, manufacture or sale of basic materials, such as lumber, steel, iron,
aluminum, concrete, chemicals and other basic building and manufacturing
materials.
Inception: May 2, 2001
Basic materials sharply outgained the S&P 500 Index during the period, as a
maturing economic recovery and overseas demand for products helped boost this
sector. While demand from China continued unabated during 2004, steady growth in
the U.S. economy also helped basic materials companies. Construction materials
and chemicals led the gainers, with these industries advancing 28.9% and 21.1%,
respectively. Metal stocks dragged on performance, partly due to a pull-back
from torrid performance in 2003 and sporadic concern that China's demand for
metals would soon abate. Rydex Basic Materials Fund returned 20.83% during the
period.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE BASIC MATERIALS FUND S&P 500 INDEX
- ---- -------------------- -------------
5/2/2001 10,000 10,000
5/31/2001 10,304 9,924
6/30/2001 9,840 9,682
7/31/2001 9,788 9,587
8/31/2001 9,764 8,987
9/30/2001 8,668 8,261
10/31/2001 8,868 8,419
11/30/2001 9,820 9,065
12/31/2001 9,684 9,144
1/31/2002 9,804 9,011
2/28/2002 10,316 8,837
3/31/2002 10,672 9,169
4/30/2002 10,108 8,613
5/31/2002 10,520 8,550
6/30/2002 10,256 7,941
7/31/2002 9,020 7,322
8/31/2002 9,000 7,370
9/30/2002 7,800 6,569
10/31/2002 8,016 7,147
11/30/2002 8,802 7,568
12/31/2002 8,450 7,123
1/31/2003 7,960 6,937
2/28/2003 7,668 6,832
3/31/2003 7,539 6,899
4/30/2003 8,137 7,467
5/31/2003 8,554 7,860
6/30/2003 8,606 7,961
7/31/2003 9,079 8,101
8/31/2003 9,420 8,259
9/30/2003 9,098 8,171
10/31/2003 9,936 8,634
11/30/2003 10,161 8,710
12/31/2003 11,108 9,166
1/31/2004 10,735 9,335
2/29/2004 11,244 9,464
3/31/2004 11,184 9,322
4/30/2004 10,710 9,175
5/31/2004 10,943 9,301
6/30/2004 11,709 9,482
7/31/2004 11,372 9,168
8/31/2004 11,553 9,205
9/30/2004 12,168 9,305
10/31/2004 11,967 9,447
11/30/2004 13,195 9,829
12/31/2004 13,421 10,164
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND 20.83% 8.36%
S&P 500 INDEX 10.89% 0.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BASIC MATERIALS FUND
CONSTRUCTION MATERIALS 6%
CHEMICALS 44%
METALS & MINING 25%
PAPER & FOREST PRODUCTS 13%
CONTAINERS & PACKAGING 12%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
EI Du Pont de Nemours & Co. 5.6%
Monsanto Co. 3.1%
Dow Chemical Co. 3.1%
MeadWestvaco Corp. 2.9%
Alcoa, Inc. 2.7%
Scotts Co. - Class A 2.4%
Ecolab, Inc. 2.4%
Praxair, Inc. 2.3%
Newmont Mining Corp. 2.3%
Air Products & Chemicals, Inc. 2.2%
- ------------------------------------------------------
Top Ten Total 29.0%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
32 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the biotechnology industry, including companies involved in research
and development, genetic or other biological engineering and in the design,
manufacture or sale of related biotechnology products or services.
Inception: May 2, 2001
The biotechnology industry's performance was basically flat during 2004, gaining
just 1.1%. Political pressure on pharmaceutical companies to lower prescription
drug prices leaked down to the biotechnology industry, preventing any momentum.
Chiron led the list of underperformers, suffering a financial and public
relations black eye in October when Great Britain's regulators pulled the
company's license after discovering non-sterile batches of flu vaccine. This led
to a flu vaccine shortage in the U.S. OSI Pharmaceutical and Eyetech
Pharmaceutical topped the list of winners. OSI showed in clinical trials that
its Tarceva drug could lengthen the lives of lung cancer patients, while Eyetech
received FDA approval in August for Macugen, a drug that helps improve the
vision of people with macular degeneration, an eye disorder. Rydex Biotechnology
Fund was also relatively flat during the period, returning 1.10%. The Fund's
methodology resulted in an underweight of Biogen, which subtracted from fund
performance relative to a cap-weighted index.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE BIOTECHNOLOGY FUND S&P 500 INDEX
- ---- ------------------ -------------
5/2/2001 10,000 10,000
5/31/2001 10,564 9,924
6/30/2001 10,828 9,682
7/31/2001 9,588 9,587
8/31/2001 9,664 8,987
9/30/2001 8,304 8,261
10/31/2001 9,588 8,419
11/30/2001 10,448 9,065
12/31/2001 9,868 9,144
1/31/2002 8,432 9,011
2/28/2002 8,060 8,837
3/31/2002 8,332 9,169
4/30/2002 7,072 8,613
5/31/2002 6,348 8,550
6/30/2002 5,604 7,941
7/31/2002 5,676 7,322
8/31/2002 5,424 7,370
9/30/2002 5,196 6,569
10/31/2002 5,666 7,147
11/30/2002 6,063 7,568
12/31/2002 5,393 7,123
1/31/2003 5,244 6,937
2/28/2003 5,124 6,832
3/31/2003 5,401 6,899
4/30/2003 5,971 7,467
5/31/2003 7,010 7,860
6/30/2003 6,813 7,961
7/31/2003 7,423 8,101
8/31/2003 7,303 8,259
9/30/2003 7,287 8,171
10/31/2003 7,283 8,634
11/30/2003 7,371 8,710
12/31/2003 7,664 9,166
1/31/2004 8,037 9,335
2/29/2004 8,077 9,464
3/31/2004 7,953 9,322
4/30/2004 8,041 9,175
5/31/2004 7,833 9,301
6/30/2004 7,800 9,482
7/31/2004 7,006 9,168
8/31/2004 7,038 9,205
9/30/2004 7,367 9,305
10/31/2004 7,086 9,447
11/30/2004 7,367 9,829
12/31/2004 7,748 10,164
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND 1.10% -6.72%
S&P 500 INDEX 10.89% 0.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BIOTECHNOLOGY FUND
BIOTECHNOLOGY 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Amgen, Inc. 10.9%
Genentech, Inc. 8.3%
Biogen Idec, Inc. 5.6%
Genzyme Corp. 4.9%
Gilead Sciences, Inc. 4.9%
Chiron Corp. 3.6%
Applera Corp. - Applied Biosystems Group 3.1%
Invitrogen Corp. 3.1%
Cephalon, Inc. 2.9%
Millennium Pharmaceuticals, Inc. 2.7%
- ------------------------------------------------------
Top Ten Total 50.0%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 33
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
manufacturing finished goods and services both domestically and internationally.
Inception: May 29, 2001
Although typically a defensive holding, the consumer products sector outgained
the S&P 500 Index, returning 13.30% in 2004. Tobacco firms and alcohol
manufacturers and producers led the list of gainers. Despite a May filing of a
$280 billion racketeering charge by the Department of Labor, the tobacco
industry gained 26% for the period. Mondavi and Coors returned 45% and 36%
respectively, helping to propel the alcohol industry. On the whole, beverages
returned only 2% in 2004, as soft drink giants Pepsi and Coke both felt the
effects of slowing soft drink consumption. The Fund's methodology caused a
significant overweight to Food Products and underweight to Food Retailers, which
boosted performance. Rydex Consumer Products Fund returned 13.30%.
CUMULATIVE FUND PERFORMANCE: MAY 29, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS
DATE FUND S&P 500 INDEX
- ---- ----------------- -------------
5/29/2001 10,000 10,000
5/31/2001 9,860 9,908
6/30/2001 9,604 9,667
7/31/2001 9,664 9,572
8/31/2001 9,968 8,973
9/30/2001 9,716 8,248
10/31/2001 9,752 8,405
11/30/2001 10,044 9,050
12/31/2001 10,128 9,129
1/31/2002 10,216 8,996
2/28/2002 10,624 8,823
3/31/2002 10,984 9,155
4/30/2002 11,108 8,599
5/31/2002 11,208 8,536
6/30/2002 10,596 7,928
7/31/2002 10,124 7,310
8/31/2002 10,268 7,358
9/30/2002 9,446 6,558
10/31/2002 9,911 7,136
11/30/2002 9,919 7,556
12/31/2002 9,763 7,112
1/31/2003 9,418 6,925
2/28/2003 9,162 6,822
3/31/2003 9,202 6,888
4/30/2003 9,747 7,455
5/31/2003 10,464 7,848
6/30/2003 10,608 7,948
7/31/2003 10,632 8,088
8/31/2003 10,841 8,246
9/30/2003 10,913 8,158
10/31/2003 11,358 8,620
11/30/2003 11,682 8,696
12/31/2003 11,897 9,152
1/31/2004 12,111 9,320
2/29/2004 12,568 9,449
3/31/2004 12,641 9,307
4/30/2004 12,856 9,161
5/31/2004 12,747 9,286
6/30/2004 13,058 9,467
7/31/2004 12,180 9,154
8/31/2004 12,386 9,191
9/30/2004 12,056 9,290
10/31/2004 12,203 9,432
11/30/2004 12,890 9,814
12/31/2004 13,479 10,148
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/29/01)
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND 13.30% 8.67%
S&P 500 INDEX 10.89% 0.41%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS FUND
FOOD PRODUCTS 33%
BEVERAGES 19%
HOUSEHOLD PRODUCTS 16%
FOOD & STAPLES RETAILING 13%
TOBACCO 10%
PERSONAL PRODUCTS 9%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Altria Group, Inc. 6.9%
Procter & Gamble Co. 6.0%
Coca-Cola Co. 5.8%
PepsiCo, Inc. 4.8%
Anheuser-Busch Cos., Inc. 3.9%
Sysco Corp. 3.8%
Kimberly-Clark Corp. 3.6%
Colgate-Palmolive Co. 3.6%
Archer-Daniels-Midland Co. 3.2%
Sara Lee Corp. 3.1%
- ------------------------------------------------------
Top Ten Total 44.7%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
34 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ELECTRONICS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the electronics sector, including semiconductor manufacturers and
distributors, and makers and vendors of other electronic components and devices.
Inception: August 3, 2001
Concerns about overcapacity weighed on the electronics industry during the first
eight months of 2004. Although the industry rebounded in August, it still
trailed the S&P 500 Index and most other industries for the year. The S&P 500
Electronic Manufacturing Services Index lost 16.91% and the S&P 500 Electronic
Equipment Manufacturer Index lost 2.25%. Rydex Electronics Fund had more smaller
stock exposure than these indices and this adversely affected performance when
uncertainty clouded the market in the first eight months of the period. Rydex
Electronics Fund returned -21.98% during the period.
CUMULATIVE FUND PERFORMANCE: AUGUST 3, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE ELECTRONICS FUND S&P 500 INDEX
- ---- ---------------- -------------
8/3/2001 10,000 10,000
8/31/2001 8,824 9,347
9/30/2001 6,068 8,592
10/31/2001 7,312 8,756
11/30/2001 8,432 9,427
12/31/2001 8,256 9,510
1/31/2002 8,504 9,371
2/28/2002 7,568 9,190
3/31/2002 8,696 9,536
4/30/2002 7,864 8,958
5/31/2002 7,308 8,892
6/30/2002 5,900 8,258
7/31/2002 5,164 7,615
8/31/2002 4,688 7,665
9/30/2002 3,643 6,832
10/31/2002 4,482 7,433
11/30/2002 5,674 7,871
12/31/2002 4,276 7,408
1/31/2003 4,043 7,214
2/28/2003 4,319 7,106
3/31/2003 4,147 7,175
4/30/2003 4,676 7,766
5/31/2003 5,484 8,175
6/30/2003 5,244 8,279
7/31/2003 5,764 8,425
8/31/2003 6,753 8,590
9/30/2003 6,125 8,498
10/31/2003 7,222 8,979
11/30/2003 7,627 9,058
12/31/2003 7,261 9,533
1/31/2004 7,450 9,708
2/29/2004 7,166 9,843
3/31/2004 6,908 9,695
4/30/2004 6,035 9,542
5/31/2004 6,685 9,673
6/30/2004 6,534 9,861
7/31/2004 5,433 9,535
8/31/2004 4,848 9,574
9/30/2004 4,998 9,677
10/31/2004 5,338 9,825
11/30/2004 5,480 10,223
12/31/2004 5,665 10,571
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (08/03/01)
- --------------------------------------------------------------------------------
ELECTRONICS FUND -21.98% -15.35%
S&P 500 INDEX 10.89% 1.64%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ELECTRONICS FUND
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Intel Corp. 11.6%
Texas Instruments, Inc. 5.9%
Applied Materials, Inc. 5.4%
Micron Technology, Inc. 3.1%
Advanced Micro Devices, Inc. 3.0%
Broadcom Corp. - Class A 3.0%
Lam Research Corp. 2.8%
Analog Devices, Inc. 2.6%
Kla-Tencor Corp. 2.5%
Xilinx, Inc. 2.5%
- ------------------------------------------------------
Top Ten Total 42.4%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 35
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ENERGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the
energy field, including the exploration, production and development of oil, gas,
coal and alternative sources of energy.
Inception: May 29, 2001
Crude oil prices, which surged to a record $55 per barrel in October before
falling back somewhat at year-end, helped propel this sector to the stock
market's strongest annual returns. Rydex Energy Fund gained 32.27% for the year.
The twin pillars of pricing and supply and demand helped drive energy prices
during the period. Increased demand for product in Asia, particularly China,
helped force prices up. Both potential and real supply disruptions also played a
large role in the industry's performance. Sabotage of Iraqi oil facilities, a
spate of hurricanes that damaged oil platforms in the Gulf of Mexico, the
Russian government's year-long claims to billions in back taxes from one of its
largest oil companies, worker unrest in Nigeria and Norway and election
uncertainty in Venezuela all played a role in limiting supply during 2004. In
short, higher crude oil prices translated to higher profits for energy
companies.
CUMULATIVE FUND PERFORMANCE: MAY 29, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE ENERGY FUND S&P 500 INDEX
- ---- ----------- -------------
5/29/2001 10,000 10,000
5/31/2001 9,984 9,908
6/30/2001 9,188 9,667
7/31/2001 9,040 9,572
8/31/2001 8,796 8,973
9/30/2001 8,088 8,248
10/31/2001 8,324 8,405
11/30/2001 7,984 9,050
12/31/2001 8,440 9,129
1/31/2002 8,052 8,996
2/28/2002 8,304 8,823
3/31/2002 9,060 9,155
4/30/2002 8,768 8,599
5/31/2002 8,376 8,536
6/30/2002 8,104 7,928
7/31/2002 7,072 7,310
8/31/2002 7,200 7,358
9/30/2002 6,648 6,558
10/31/2002 6,980 7,136
11/30/2002 7,180 7,556
12/31/2002 7,300 7,112
1/31/2003 7,040 6,925
2/28/2003 7,140 6,822
3/31/2003 7,052 6,888
4/30/2003 7,120 7,455
5/31/2003 7,972 7,848
6/30/2003 7,900 7,948
7/31/2003 7,504 8,088
8/31/2003 7,916 8,246
9/30/2003 7,748 8,158
10/31/2003 7,876 8,620
11/30/2003 7,980 8,696
12/31/2003 8,980 9,152
1/31/2004 9,100 9,320
2/29/2004 9,576 9,449
3/31/2004 9,556 9,307
4/30/2004 9,752 9,161
5/31/2004 9,616 9,286
6/30/2004 10,252 9,467
7/31/2004 10,536 9,154
8/31/2004 10,300 9,191
9/30/2004 11,290 9,290
10/31/2004 11,330 9,432
11/30/2004 12,294 9,814
12/31/2004 11,878 10,148
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/29/01)
- --------------------------------------------------------------------------------
ENERGY FUND 32.27% 4.91%
S&P 500 INDEX 10.89% 0.41%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ENERGY FUND
OIL & GAS 73%
ENERGY EQUIPMENT & SERVICES 27%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Exxon Mobil Corp. 7.0%
BP PLC - SP ADR 4.8%
ChevronTexaco Corp. 4.2%
ConocoPhillips 4.1%
Total SA - SP ADR 3.9%
Royal Dutch Petroleum Co. 3.5%
Occidental Petroleum Corp. 2.8%
Shell Transport & Trading Co.
PLC - SP ADR 2.8%
Devon Energy Corp. 2.7%
El Paso Corp. 2.1%
- ------------------------------------------------------
Top Ten Total 37.9%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
36 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the energy services field, including those that provide services and
equipment in the areas of oil, coal and gas exploration and production.
Inception: May 2, 2001
Increased demand and, consequently, record high crude oil prices, helped propel
the energy services sector to impressive gains during the period. Rydex Energy
Services Fund returned a healthy 33.74% in 2004. Typically, higher demand
results in increased drilling and refining. However, regulatory roadblocks
hindered most attempts at drilling in new oil fields, while U.S. refineries
operated near capacity during the year. Energy services companies were able to
raise their prices during the period, using extra cash to bolster their balance
sheets, buy back shares, pay down debt and increase dividends.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE ENERGY SERVICES FUND S&P 500 INDEX
- ---- -------------------- ------------
5/2/2001 10,000 10,000
5/31/2001 10,376 9,924
6/30/2001 8,272 9,682
7/31/2001 7,620 9,587
8/31/2001 6,660 8,987
9/30/2001 5,700 8,261
10/31/2001 6,772 8,419
11/30/2001 6,584 9,065
12/31/2001 7,096 9,144
1/31/2002 6,836 9,011
2/28/2002 7,112 8,837
3/31/2002 7,844 9,169
4/30/2002 7,976 8,613
5/31/2002 7,776 8,550
6/30/2002 6,864 7,941
7/31/2002 5,940 7,322
8/31/2002 6,060 7,370
9/30/2002 5,571 6,569
10/31/2002 5,944 7,147
11/30/2002 6,296 7,568
12/31/2002 6,239 7,123
1/31/2003 5,953 6,937
2/28/2003 6,278 6,832
3/31/2003 5,983 6,899
4/30/2003 6,048 7,467
5/31/2003 7,029 7,860
6/30/2003 6,690 7,961
7/31/2003 6,083 8,101
8/31/2003 6,513 8,259
9/30/2003 6,122 8,171
10/31/2003 6,083 8,634
11/30/2003 6,027 8,710
12/31/2003 6,764 9,166
1/31/2004 7,198 9,335
2/29/2004 7,641 9,464
3/31/2004 7,411 9,322
4/30/2004 7,402 9,175
5/31/2004 7,111 9,301
6/30/2004 7,753 9,482
7/31/2004 8,044 9,168
8/31/2004 7,914 9,205
9/30/2004 8,782 9,305
10/31/2004 8,556 9,447
11/30/2004 9,198 9,829
12/31/2004 9,046 10,164
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND 33.74% -2.70%
S&P 500 INDEX 10.89% 0.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
ENERGY SERVICES FUND
ENERGY EQUIPMENT & SERVICES 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Schlumberger Ltd. 8.2%
Halliburton Co. 6.5%
Transocean, Inc. 6.2%
Baker Hughes, Inc. 5.3%
Weatherford International Ltd. 4.6%
BJ Services Co. 4.3%
Diamond Offshore Drilling, Inc. 3.7%
Nabors Industries Ltd. 3.5%
Tidewater, Inc. 3.3%
ENSCO International, Inc. 3.1%
- ------------------------------------------------------
Top Ten Total 48.7%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 37
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the financial services sector.
Inception: July 20, 2001
Despite a series of Fed fund rate increases during the latter half of 2004, the
financial services sector performed strongly for the year, outperforming the S&P
500 Index. Banks, the worst performing industry in the group, still outperformed
the Index. Real estate, consumer finance and life & health insurance were among
the leaders of the group. REITs, in particular, remained a popular investment
due to their high dividends. Under-performers included investment banking and
brokerage, insurance brokers and reinsurance. Both investment and insurance
brokers came under fire during 2004 for the way some companies conducted
business. Rydex Financial Services Fund handed out a 17.12% return, in part due
to its modified cap weight (less emphasis of the large-cap names).
CUMULATIVE FUND PERFORMANCE: JULY 20, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
FINANCIAL
DATE SERVICES FUND S&P 500 INDEX
- ---- ------------- -------------
7/20/2001 10,000 10,000
7/31/2001 10,108 10,005
8/31/2001 9,496 9,378
9/30/2001 8,992 8,621
10/31/2001 8,680 8,785
11/30/2001 9,280 9,459
12/31/2001 9,560 9,542
1/31/2002 9,480 9,403
2/28/2002 9,460 9,222
3/31/2002 10,064 9,568
4/30/2002 9,980 8,988
5/31/2002 9,984 8,922
6/30/2002 9,500 8,287
7/31/2002 8,628 7,641
8/31/2002 8,808 7,691
9/30/2002 7,678 6,855
10/31/2002 8,097 7,458
11/30/2002 8,406 7,897
12/31/2002 8,117 7,433
1/31/2003 7,988 7,239
2/28/2003 7,775 7,130
3/31/2003 7,682 7,199
4/30/2003 8,486 7,792
5/31/2003 8,993 8,203
6/30/2003 9,005 8,307
7/31/2003 9,403 8,454
8/31/2003 9,355 8,619
9/30/2003 9,370 8,527
10/31/2003 9,993 9,010
11/30/2003 10,106 9,089
12/31/2003 10,464 9,566
1/31/2004 10,855 9,741
2/29/2004 11,209 9,877
3/31/2004 11,064 9,728
4/30/2004 10,541 9,575
5/31/2004 10,839 9,706
6/30/2004 10,891 9,895
7/31/2004 10,589 9,567
8/31/2004 10,955 9,606
9/30/2004 11,065 9,710
10/31/2004 11,267 9,859
11/30/2004 11,787 10,258
12/31/2004 12,255 10,607
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/20/01)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND 17.12% 6.07%
S&P 500 INDEX 10.89% 1.72%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
FINANCIAL SERVICES FUND
COMMERCIAL BANKS 22%
INSURANCE 22%
REAL ESTATE 17%
THRIFTS & MORTGAGE FINANCE 13%
DIVERSIFIED FINANCIAL SERVICES 10%
CAPITAL MARKETS 9%
CONSUMER FINANCE 7%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Citigroup, Inc. 3.4%
JPMorgan Chase & Co. 2.7%
American Express Co. 2.0%
National City Corp. 1.9%
Fifth Third Bancorp 1.9%
Bank of New York Co., Inc. 1.9%
Keycorp 1.8%
Progressive Corp. 1.8%
Chubb Corp. 1.8%
Principal Financial Group 1.8%
- ------------------------------------------------------
Top Ten Total 21.0%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
38 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
HEALTH CARE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the health care industry.
Inception: June 19, 2001
The growing threat of Medicare legislation during the first 10 months of the
year depressed the industry, especially pharmaceutical companies. The second
half of the year was marked by major setbacks for pharmaceutical companies.
Sales of COX-2 inhibitors, known by their brand names Vioxx and Celebrex, ground
to a halt during the last quarter. Merck voluntarily pulled Vioxx from the
market and the FDA halted clinical trials using Pfizer's Celebrex when it was
determined that the drugs could lead to heart attacks and strokes. As a group,
pharmaceuticals lost -5% for the period.
Other health care industries fared much better during 2004. The health care
equipment and supplies industry returned 19%, spurred on in part by the Centers
for Medicare and Medicaid Services' decision to expand coverage of implantable
cardiac defibrillators for people with congestive heart failure. St. Jude
Medical and Guidant responded with gains of 37% and 21%, respectively. Health
care providers and services fared even better, gaining 22% on the year,
propelled by the election results.
Rydex Health Care Fund returned 6.22% in 2004. The Fund's methodology resulted
in an average underweighting to the pharmaceutical sector, which contributed to
the Fund's outperformance.
CUMULATIVE FUND PERFORMANCE: JUNE 19, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE HEALTH CARE FUND S&P 500 INDEX
- ---- ---------------- -------------
6/19/2001 10,000 10,000
6/30/2001 9,552 10,099
7/31/2001 9,852 10,000
8/31/2001 9,516 9,374
9/30/2001 9,480 8,617
10/31/2001 9,436 8,781
11/30/2001 9,796 9,455
12/31/2001 9,528 9,537
1/31/2002 9,356 9,398
2/28/2002 9,360 9,217
3/31/2002 9,416 9,564
4/30/2002 8,848 8,984
5/31/2002 8,740 8,918
6/30/2002 7,856 8,282
7/31/2002 7,640 7,637
8/31/2002 7,736 7,687
9/30/2002 7,273 6,851
10/31/2002 7,538 7,455
11/30/2002 7,674 7,893
12/31/2002 7,498 7,430
1/31/2003 7,510 7,235
2/28/2003 7,342 7,126
3/31/2003 7,526 7,196
4/30/2003 7,943 7,788
5/31/2003 8,488 8,199
6/30/2003 8,688 8,303
7/31/2003 9,017 8,450
8/31/2003 8,944 8,614
9/30/2003 8,964 8,523
10/31/2003 9,205 9,005
11/30/2003 9,433 9,084
12/31/2003 9,730 9,561
1/31/2004 10,103 9,736
2/29/2004 10,167 9,872
3/31/2004 10,010 9,723
4/30/2004 10,131 9,570
5/31/2004 10,095 9,701
6/30/2004 10,167 9,890
7/31/2004 9,501 9,563
8/31/2004 9,598 9,601
9/30/2004 9,662 9,705
10/31/2004 9,438 9,854
11/30/2004 9,751 10,252
12/31/2004 10,335 10,601
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (06/19/01)
- --------------------------------------------------------------------------------
HEALTH CARE FUND 6.22% 0.94%
S&P 500 INDEX 10.89% 1.67%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
HEALTH CARE FUND
PHARMACEUTICALS 37%
HEALTH CARE PROVIDERS & SERVICES 27%
HEALTH CARE EQUIPMENT & SUPPLIES 21%
BIOTECHNOLOGY 15%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Pfizer, Inc. 7.6%
Johnson & Johnson 6.2%
Abbott Laboratories 4.3%
UnitedHealth Group, Inc. 3.3%
Bristol-Myers Squibb Co. 3.1%
Wyeth 2.9%
Eli Lilly & Co. 2.9%
Genentech, Inc. 2.9%
Amgen, Inc. 2.7%
Boston Scientific Corp. 2.6%
- ------------------------------------------------------
Top Ten Total 38.5%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 39
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INTERNET FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that provide
products or services designed for or related to the Internet ("Internet
Companies").
Inception: May 24, 2001
For the second consecutive year, Internet companies outpaced the S&P 500 Index.
Internet software, service and security companies, including Yahoo, McAfee,
Check Point Software, Tibco, Websense and Verisign, were among the Fund's better
performers. Internet retailers eBay and Priceline led a mixed retailing
industry, while Amazon, Netflix and Interactive Corp. disappointed during the
period. Generally, improved company fundamentals helped the industry. Rydex
Internet Fund gained 15.87% for the year. Its modified cap weight (less emphasis
of the large-cap names) strategy placed less emphasis on the large-cap Internet
winners.
CUMULATIVE FUND PERFORMANCE: MAY 24, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE INTERNET FUND S&P 500 INDEX
- ---- ------------- -------------
5/24/2001 10,000 10,000
5/31/2001 8,716 9,715
6/30/2001 8,232 9,478
7/31/2001 7,292 9,385
8/31/2001 5,840 8,798
9/30/2001 4,544 8,087
10/31/2001 5,236 8,241
11/30/2001 6,360 8,874
12/31/2001 6,304 8,951
1/31/2002 5,976 8,821
2/28/2002 4,804 8,651
3/31/2002 5,216 8,976
4/30/2002 4,336 8,432
5/31/2002 4,172 8,370
6/30/2002 3,608 7,773
7/31/2002 3,132 7,167
8/31/2002 3,196 7,215
9/30/2002 2,780 6,430
10/31/2002 3,440 6,996
11/30/2002 4,288 7,408
12/31/2002 3,572 6,973
1/31/2003 3,540 6,790
2/28/2003 3,484 6,688
3/31/2003 3,512 6,753
4/30/2003 3,880 7,310
5/31/2003 4,544 7,695
6/30/2003 4,620 7,793
7/31/2003 4,764 7,930
8/31/2003 5,036 8,085
9/30/2003 4,912 7,999
10/31/2003 5,384 8,452
11/30/2003 5,524 8,526
12/31/2003 5,872 8,973
1/31/2004 6,284 9,138
2/29/2004 6,176 9,265
3/31/2004 6,144 9,125
4/30/2004 5,788 8,982
5/31/2004 6,196 9,105
6/30/2004 6,464 9,282
7/31/2004 5,764 8,975
8/31/2004 5,468 9,011
9/30/2004 5,788 9,109
10/31/2004 6,144 9,248
11/30/2004 6,604 9,622
12/31/2004 6,804 9,950
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/24/01)
- --------------------------------------------------------------------------------
INTERNET FUND 15.87% -10.13%
S&P 500 INDEX 10.89% -0.14%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
INTERNET FUND
OTHER 16%
DIVERSIFIED TELECOMMUNICATION SERVICES 24%
CAPITAL MARKETS 22%
HEALTH CARE PROVIDERS & SERVICES 16%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 15%
COMMERCIAL SERVICES & SUPPLIES 7%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Cisco Systems, Inc. 8.8%
Qualcomm, Inc. 6.7%
Yahoo!, Inc. 6.6%
Time Warner, Inc. 6.6%
eBay, Inc. 6.4%
Amazon.Com, Inc. 4.4%
Juniper Networks, Inc. 4.1%
Research In Motion Ltd. 3.0%
Qwest Communications International, Inc. 2.9%
Sun Microsystems, Inc. 2.7%
- ------------------------------------------------------
Top Ten Total 52.2%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
40 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LEISURE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies in the leisure
and entertainment businesses.
Inception: May 22, 2001
For the third consecutive year, the leisure industry outperformed the S&P 500
Index. Rydex Leisure Fund rose 23.86%, helped by a number of sub-industries.
Casinos, gaming companies, hotels, resorts, cruise lines and home entertainment
software all contributed to positive performance. Boyd Gaming's and MGM Mirage's
joint venture in Atlantic City, the Borgata, led to a gain in market share
during the period for the merged companies. The Borgata is the first Atlantic
City hotel and casino to attempt to attract multi-day visitors, as opposed to
day trippers. Casino gambling continued to grow in other states. More than 20
have made it legal, compared with only two states 20 years ago. Leisure
facilities dragged on performance, dropping -9.2% for the period. The Fund's
modified cap-weighting was beneficial in the movies and entertainment
industries, but not elsewhere.
CUMULATIVE FUND PERFORMANCE: MAY 22, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE LEISURE FUND S&P 500 INDEX
- ---- ------------ -------------
5/22/2001 10,000 10,000
5/31/2001 9,528 9,595
6/30/2001 9,488 9,362
7/31/2001 8,792 9,270
8/31/2001 7,872 8,689
9/30/2001 6,136 7,988
10/31/2001 6,368 8,140
11/30/2001 6,980 8,764
12/31/2001 7,236 8,841
1/31/2002 7,504 8,712
2/28/2002 7,424 8,544
3/31/2002 7,828 8,866
4/30/2002 8,060 8,328
5/31/2002 8,020 8,267
6/30/2002 7,608 7,678
7/31/2002 7,000 7,079
8/31/2002 6,876 7,126
9/30/2002 6,292 6,351
10/31/2002 6,312 6,910
11/30/2002 6,572 7,317
12/31/2002 6,168 6,887
1/31/2003 5,908 6,707
2/28/2003 5,676 6,606
3/31/2003 5,912 6,670
4/30/2003 6,272 7,220
5/31/2003 6,688 7,600
6/30/2003 6,952 7,697
7/31/2003 7,180 7,833
8/31/2003 7,380 7,986
9/30/2003 7,320 7,901
10/31/2003 7,908 8,348
11/30/2003 8,124 8,421
12/31/2003 8,320 8,863
1/31/2004 8,580 9,026
2/29/2004 9,004 9,151
3/31/2004 9,148 9,013
4/30/2004 8,796 8,871
5/31/2004 8,708 8,993
6/30/2004 8,836 9,168
7/31/2004 8,500 8,865
8/31/2004 8,392 8,901
9/30/2004 8,812 8,997
10/31/2004 8,990 9,134
11/30/2004 9,615 9,504
12/31/2004 10,305 9,827
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/22/01)
- --------------------------------------------------------------------------------
LEISURE FUND 23.86% 0.84%
S&P 500 INDEX 10.89% -0.48%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
LEISURE FUND
HOTELS RESTAURANTS & LEISURE 61%
MEDIA 21%
LEISURE EQUIPMENT & PRODUCTS 12%
SOFTWARE 6%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Time Warner, Inc. 6.0%
Viacom, Inc. - Class B 5.8%
McDonald's Corp. 5.1%
Walt Disney Co. 4.4%
Electronic Arts, Inc. 4.3%
Marriott International, Inc. - Class A 3.7%
Yum! Brands, Inc. 3.5%
Fox Entertainment Group, Inc. - Class A 3.5%
Hilton Hotels Corp. 3.1%
Harrah's Entertainment, Inc. 3.0%
- ------------------------------------------------------
Top Ten Total 42.4%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 41
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
OBJECTIVE: To provide capital appreciation by investing in U.S. and foreign
companies that are involved in the precious metals sector, including
exploration, mining, production and development, and other precious
metals-related services.
Inception: May 29, 1997
After an impressive year in 2003, precious metals stocks pulled back in 2004. In
particular, gold stocks fell early in the year and later in December, when the
stock market rallied and the U.S. dollar appreciated. In between, concerns about
the dollar's weakness and higher oil prices drove investors toward the sector.
The XAU fell 7.7%. The Fund's methodology caused the Fund to be underweight
Barrick Gold and overweight DRD Gold and Coeur d'Alene Mines relative to the
XAU, lending to underperformance relative to the XAU, an Index that consists of
12 precious metals mining companies. For the year, Rydex Precious Metals Fund
fell -14.21%.
CUMULATIVE FUND PERFORMANCE: MAY 29, 1997 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE PRECIOUS METAL FUND S&P 500 INDEX
- ---- ------------------- -------------
5/29/1997 10,000 10,000
6/30/1997 8,870 10,501
9/30/1997 9,990 11,287
12/31/1997 7,020 11,611
3/31/1998 7,650 13,231
6/30/1998 6,610 13,668
9/30/1998 6,730 12,309
12/31/1998 5,810 14,930
3/31/1999 5,240 15,674
6/30/1999 5,740 16,778
9/30/1999 6,499 15,731
12/31/1999 5,602 18,071
3/31/2000 4,611 18,486
6/30/2000 4,797 17,995
9/30/2000 4,323 17,820
12/31/2000 4,446 16,426
3/31/2001 4,333 14,479
6/30/2001 4,890 15,326
9/30/2001 5,179 13,076
12/31/2001 5,024 14,474
3/31/2002 6,603 14,513
6/30/2002 6,819 12,569
9/30/2002 6,541 10,398
12/31/2002 7,314 11,275
3/31/2003 6,272 10,920
6/30/2003 7,139 12,601
9/30/2003 8,202 12,934
12/31/2003 10,306 14,509
3/31/2004 10,255 14,755
6/30/2004 8,129 15,009
9/30/2004 9,532 14,728
12/31/2004 8,841 16,088
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/29/97)
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND -14.21% 9.56% -1.61%
S&P 500 INDEX 10.89% -2.30% 6.46%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
PRECIOUS METALS FUND
METALS & MINING 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Newmont Mining Corp. 13.9%
Freeport-McMoRan Copper & Gold, Inc. - Class B 10.1%
Barrick Gold Corp. 6.4%
Placer Dome, Inc. 5.5%
AngloGold Ashanti Ltd. - SP ADR 5.2%
Gold Fields Ltd. - SP ADR 4.7%
Goldcorp, Inc. 4.6%
Harmony Gold Mining Co. Ltd. - SP ADR 4.5%
PAN American Silver Corp. 3.4%
Meridian Gold, Inc. 3.3%
- ------------------------------------------------------
Top Ten Total 61.6%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
42 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
REAL ESTATE FUND
OBJECTIVE: Rydex Real Estate Fund seeks to provide capital appreciation by
investing in companies that are involved in the real estate industry including
real estate investment trusts ("REITs").
Inception: October 1, 2001
In the previous four years, the real estate investment trust (REIT) industry
easily outperformed the broader markets, and 2004 proved no different. REIT
stocks have gained 22.5% annually during the last five years, while the S&P 500
Index has lost -2.3% during the same time span. Rydex Real Estate Fund gained
29.54% in 2004, almost tripling the S&P 500 Index gain. REIT stocks fell off in
April because of concerns about the potential for rising interest rates, but
performed strongly throughout the rest of the year. The Fund benefited from
slight overweights in REITs. Despite incremental Fed funds rate increases during
the latter half of the year, an improving economy helped this sector. Strong
consumer consumption resulted in strong store sales, which in turn helped
provide stability in the commercial renting and leasing area.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE REAL ESTATE FUND S&P 500 INDEX
- ---------- ---------------- -------------
10/1/2001 10,000 10,000
10/31/2001 9,708 10,213
11/30/2001 10,208 10,997
12/31/2001 10,409 11,093
1/31/2002 10,284 10,931
2/28/2002 10,401 10,721
3/31/2002 10,975 11,124
4/30/2002 10,979 10,449
5/31/2002 11,100 10,372
6/30/2002 11,338 9,633
7/31/2002 10,757 8,883
8/31/2002 10,733 8,941
9/30/2002 10,276 7,969
10/31/2002 9,782 8,671
11/30/2002 10,231 9,181
12/31/2002 10,293 8,642
1/31/2003 9,963 8,415
2/28/2003 10,062 8,289
3/31/2003 10,215 8,369
4/30/2003 10,623 9,059
5/31/2003 11,122 9,536
6/30/2003 11,332 9,658
7/31/2003 11,914 9,828
8/31/2003 11,910 10,020
9/30/2003 12,280 9,913
10/31/2003 12,490 10,474
11/30/2003 13,019 10,566
12/31/2003 13,413 11,120
1/31/2004 13,923 11,325
2/29/2004 14,149 11,482
3/31/2004 14,956 11,309
4/30/2004 12,796 11,131
5/31/2004 13,683 11,284
6/30/2004 14,118 11,503
7/31/2004 14,118 11,123
8/31/2004 15,204 11,168
9/30/2004 15,198 11,289
10/31/2004 15,922 11,461
11/30/2004 16,610 11,925
12/31/2004 17,375 12,331
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
REAL ESTATE FUND 29.54% 18.53%
S&P 500 INDEX 10.89% 6.66%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
REAL ESTATE FUND
REAL ESTATE 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Simon Property Group, Inc. 2.5%
Equity Office Properties Trust 2.2%
Equity Residential 2.2%
Vornado Realty Trust 2.0%
Prologis 1.9%
General Growth Properties, Inc. 1.8%
Plum Creek Timber (REIT) Co. 1.7%
Boston Properties, Inc. 1.7%
Archstone-Smith Trust 1.7%
Public Storage, Inc. 1.7%
- ------------------------------------------------------
Top Ten Total 19.4%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 43
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
RETAILING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
merchandising finished goods and services, including department stores,
restaurant franchises, mail-order operations and other companies involved in
selling products to consumers.
Inception: July 23, 2001
Consumer confidence indices increased throughout the year, and consumers showed
their confidence in a tangible way by continuing their retail spending. The
retailing sector outperformed the S&P 500 Index, but Rydex Retailing Fund lagged
slightly, returning 10.06%. Distributors, department stores and clothing
retailers led the gainers. Specialty stores, general merchandise stores and food
and staples retailers all fell short of the S&P 500 Index's increase for 2004.
The Fund's overweight position in smaller-cap stocks and the underperforming
specialty store segment adversely affected performance
CUMULATIVE FUND PERFORMANCE: JULY 23, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE RETAILING FUND S&P 500 INDEX
- ---------- -------------- -------------
7/23/2001 10,000 10,000
7/31/2001 10,224 10,171
8/31/2001 9,400 9,534
9/30/2001 8,412 8,764
10/31/2001 8,628 8,932
11/30/2001 9,892 9,617
12/31/2001 10,260 9,701
1/31/2002 10,420 9,559
2/28/2002 10,408 9,375
3/31/2002 10,480 9,728
4/30/2002 10,300 9,138
5/31/2002 10,112 9,071
6/30/2002 9,520 8,424
7/31/2002 8,344 7,768
8/31/2002 8,600 7,819
9/30/2002 7,833 6,969
10/31/2002 8,436 7,582
11/30/2002 8,780 8,029
12/31/2002 8,012 7,557
1/31/2003 7,696 7,359
2/28/2003 7,538 7,249
3/31/2003 7,783 7,319
4/30/2003 8,598 7,922
5/31/2003 8,992 8,339
6/30/2003 9,316 8,446
7/31/2003 9,798 8,595
8/31/2003 10,624 8,762
9/30/2003 9,958 8,669
10/31/2003 10,979 9,159
11/30/2003 11,146 9,240
12/31/2003 10,838 9,725
1/31/2004 10,775 9,903
2/29/2004 11,409 10,041
3/31/2004 11,434 9,889
4/30/2004 11,004 9,734
5/31/2004 11,179 9,868
6/30/2004 11,317 10,060
7/31/2004 10,658 9,727
8/31/2004 10,412 9,766
9/30/2004 10,639 9,872
10/31/2004 10,939 10,023
11/30/2004 11,529 10,428
12/31/2004 11,928 10,783
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/23/01)
- --------------------------------------------------------------------------------
RETAILING FUND 10.06% 5.26%
S&P 500 INDEX 10.89% 2.21%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
RETAILING FUND
SPECILTY RETAIL 58%
FOOD AND STAPLES RETAILING 15%
MULTILINE RETAIL 13%
INTERNET & CATALOG RETAIL 13%
OTHER 1%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Wal-Mart Stores, Inc. 7.1%
Home Depot, Inc. 5.2%
eBay, Inc. 5.1%
Lowe's Cos., Inc. 3.8%
Target Corp. 3.3%
Costco Wholesale Corp. 3.1%
InterActiveCorp 3.0%
Amazon.Com, Inc. 2.9%
Gap, Inc. 2.8%
Staples, Inc. 2.8%
- ------------------------------------------------------
Top Ten Total 39.1%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
44 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the technology sector, including computer software and service
companies, semiconductor manufacturers, networking and telecommunications
equipment manufacturers and PC hardware and peripherals companies.
Inception: May 2, 2001
The technology sector was beaten up heavily in the first eight months of the
year, when there was much uncertainty in the market. Despite a year-end rally,
the technology sector was one of the market's worst-performing groups. Small-cap
companies typically performed better than larger companies, helping to boost
performance somewhat in Rydex Technology Fund, which was up 1.15% for the year.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE TECHNOLOGY FUND S&P 500 INDEX
- ---- --------------- -------------
5/2/2001 10,000 10,000
5/31/2001 8,972 9,924
6/30/2001 8,896 9,682
7/31/2001 8,220 9,587
8/31/2001 7,112 8,987
9/30/2001 5,640 8,261
10/31/2001 6,524 8,419
11/30/2001 7,596 9,065
12/31/2001 7,444 9,144
1/31/2002 7,408 9,011
2/28/2002 6,432 8,837
3/31/2002 6,820 9,169
4/30/2002 6,032 8,613
5/31/2002 5,776 8,550
6/30/2002 4,992 7,941
7/31/2002 4,500 7,322
8/31/2002 4,480 7,370
9/30/2002 3,651 6,569
10/31/2002 4,524 7,147
11/30/2002 5,419 7,568
12/31/2002 4,533 7,123
1/31/2003 4,482 6,937
2/28/2003 4,542 6,832
3/31/2003 4,496 6,899
4/30/2003 4,962 7,467
5/31/2003 5,707 7,860
6/30/2003 5,725 7,961
7/31/2003 6,127 8,101
8/31/2003 6,785 8,259
9/30/2003 6,506 8,171
10/31/2003 7,170 8,634
11/30/2003 7,307 8,710
12/31/2003 7,312 9,166
1/31/2004 7,705 9,335
2/29/2004 7,524 9,464
3/31/2004 7,391 9,322
4/30/2004 6,855 9,175
5/31/2004 7,239 9,301
6/30/2004 7,361 9,482
7/31/2004 6,580 9,168
8/31/2004 6,207 9,205
9/30/2004 6,454 9,305
10/31/2004 6,821 9,447
11/30/2004 7,183 9,829
12/31/2004 7,396 10,164
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
TECHNOLOGY FUND 1.15% -7.90%
S&P 500 INDEX 10.89% 0.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TECHNOLOGY FUND
SOFTWARE 24%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 20%
COMPUTERS & PERIPHERALS 19%
COMMUNICATIONS EUIPMENT 16%
IT SERVICES 9%
ELECTRONIC EQUIPMENT & INSTRUMENTS 7%
OTHER 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Microsoft Corp. 8.4%
Intel Corp. 5.3%
Cisco Systems, Inc. 4.9%
Dell, Inc. 4.8%
International Business Machines Corp. 4.6%
Oracle Corp. 4.1%
Hewlett-Packard Co. 3.3%
Motorola, Inc. 2.7%
Qualcomm, Inc. 2.5%
EMC Corp./MA 2.2%
- ------------------------------------------------------
Top Ten Total 42.8%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 45
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
development, manufacture or sale of communications services or communications
equipment.
Inception: July 27, 2001
A strong second half of the year propelled the telecommunications sector and, in
particular, Rydex Telecommunications Fund, which gained 12.68% for the year.
Diversified telecommunications services outperformed the sector during the first
eight months of 2004, when the group struggled. Higher-beta telecommunication
companies, which have higher risk and potentially higher returns, did very well
in January and later in the year. Overall, this industry produced volatile
returns, which is typical for higher-beta firms. Our model let us overweight
small stocks, which helped the Fund.
CUMULATIVE FUND PERFORMANCE: JULY 27, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE TELECOMMUNICATIONS FUND S&P 500 INDEX
- ---- ----------------------- -------------
7/27/2001 10,000 10,000
7/31/2001 9,960 10,046
8/31/2001 8,932 9,417
9/30/2001 8,804 8,656
10/31/2001 8,524 8,821
11/30/2001 9,092 9,498
12/31/2001 9,024 9,581
1/31/2002 8,180 9,441
2/28/2002 7,292 9,259
3/31/2002 7,216 9,607
4/30/2002 6,076 9,025
5/31/2002 5,936 8,958
6/30/2002 5,176 8,320
7/31/2002 4,576 7,672
8/31/2002 4,668 7,722
9/30/2002 3,948 6,883
10/31/2002 5,148 7,489
11/30/2002 6,188 7,929
12/31/2002 5,452 7,464
1/31/2003 5,420 7,268
2/28/2003 5,184 7,159
3/31/2003 5,096 7,229
4/30/2003 5,588 7,824
5/31/2003 6,188 8,236
6/30/2003 6,216 8,341
7/31/2003 6,232 8,488
8/31/2003 6,488 8,654
9/30/2003 6,512 8,562
10/31/2003 6,992 9,046
11/30/2003 7,068 9,126
12/31/2003 7,288 9,605
1/31/2004 8,072 9,781
2/29/2004 8,220 9,917
3/31/2004 7,936 9,767
4/30/2004 7,372 9,614
5/31/2004 7,444 9,746
6/30/2004 7,720 9,935
7/31/2004 7,204 9,606
8/31/2004 7,120 9,645
9/30/2004 7,392 9,750
10/31/2004 7,676 9,899
11/30/2004 8,072 10,299
12/31/2004 8,212 10,650
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/27/01)
- --------------------------------------------------------------------------------
TELECOMMUNICATIOnS FUND 12.68% -5.58%
S&P 500 INDEX 10.89% 1.85%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TELECOMMUNICATIONS FUND
COMMUNICATIONS EQUIPMENT 52%
DIVERSIFIED TELECOMMUNICATION SERVICES 28%
WIRELESS TELECOMMUNICATION SERVICES 19%
OTHER 1%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Cisco Systems, Inc. 7.2%
Vodafone Group PLC - SP ADR 6.4%
SBC Communications, Inc. 5.4%
Nokia OYJ - SP ADR 5.1%
Verizon Communications, Inc. 4.7%
Qualcomm, Inc. 4.5%
Motorola, Inc. 4.0%
BellSouth Corp. 3.9%
Telefonaktiebolaget LM Ericsson - SP ADR 3.7%
Lucent Technologies, Inc. 3.6%
- ------------------------------------------------------
Top Ten Total 48.5%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
46 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
providing transportation services or companies engaged in the design,
manufacture, distribution or sale of transportation equipment.
Inception: June 11, 2001
The transportation industry outperformed the S&P 500 Index in 2004, despite the
poor performance of legacy airlines. Rydex Transportation Fund was up 22.99% for
the year. Despite rising fuel costs, trucking stocks were among the best
performers in the group due to consolidation in the industry and increased
demand for their services. The road and rail group and air freight logistics
companies also had strong years. Soaring fuel costs, high capacity and mounting
labor costs drove stock prices down for legacy air carriers, such as United and
Continental. Fund holdings JetBlue Airways and Southwest Airways, fared better
than most due to pre-purchases of jet fuel before prices rose and lower labor
costs. The Fund's modified cap weighting and stock selection contributed to its
outperformance.
CUMULATIVE FUND PERFORMANCE: JUNE 11, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE TRANSPORTATION FUND S&P 500 INDEX
- ---- ------------------- -------------
6/11/2001 10,000 10,000
6/30/2001 10,008 9,766
7/31/2001 10,184 9,670
8/31/2001 9,760 9,065
9/30/2001 8,112 8,333
10/31/2001 8,392 8,492
11/30/2001 9,448 9,143
12/31/2001 9,760 9,223
1/31/2002 10,312 9,089
2/28/2002 10,412 8,913
3/31/2002 10,584 9,249
4/30/2002 9,704 8,688
5/31/2002 9,820 8,624
6/30/2002 9,748 8,010
7/31/2002 8,652 7,385
8/31/2002 8,404 7,434
9/30/2002 8,004 6,626
10/31/2002 8,484 7,209
11/30/2002 8,780 7,633
12/31/2002 8,620 7,185
1/31/2003 7,940 6,997
2/28/2003 7,608 6,892
3/31/2003 7,860 6,959
4/30/2003 8,704 7,532
5/31/2003 8,972 7,929
6/30/2003 8,904 8,030
7/31/2003 9,316 8,171
8/31/2003 9,568 8,331
9/30/2003 9,508 8,242
10/31/2003 10,204 8,709
11/30/2003 10,200 8,785
12/31/2003 10,388 9,246
1/31/2004 9,900 9,416
2/29/2004 9,888 9,546
3/31/2004 9,936 9,402
4/30/2004 10,004 9,255
5/31/2004 10,220 9,382
6/30/2004 11,000 9,564
7/31/2004 10,444 9,248
8/31/2004 10,440 9,285
9/30/2004 10,838 9,386
10/31/2004 11,700 9,529
11/30/2004 12,337 9,915
12/31/2004 12,776 10,252
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (06/11/01)
- --------------------------------------------------------------------------------
TRANSPORTATION FUND 22.99% 7.13%
S&P 500 INDEX 10.89% 0.70%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TRANSPOTATION FUND
ROAD & RAIL 44%
AIR FREIGHT & LOGISTICS 33%
AIRLINES 20%
OTHER 3%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
United Parcel Service, Inc. - Class B 11.8%
FedEx Corp. 7.9%
Norfolk Southern Corp. 6.5%
Burlington Northern Santa Fe Corp. 6.0%
Union Pacific Corp. 5.8%
Southwest Airlines Co. 5.5%
CNF, Inc. 4.0%
CSX Corp. 3.9%
JB Hunt Transport Services, Inc. 3.3%
Yellow Roadway Corp. 2.9%
- ------------------------------------------------------
Top Ten Total 57.6%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 47
PERFORMANCE REPORTS AND FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
UTILITIES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that operate
public utilities ("Utilities Companies").
Inception: May 2, 2001
Higher interest rates didn't dampen the performance of the utilities sector,
which had a surprisingly strong year. The enactment of new federal tax
legislation, which lowered the federal income tax rate on most stock dividends
to 15%, likely helped companies in this sector. Utilities companies typically
pay higher dividends than most other sectors, relative to their share prices.
Rydex Utilities Fund returned 17.31% for 2004.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2004
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE UTILITIES FUND S&P 500 INDEX
- ---- -------------- -------------
5/2/2001 10,000 10,000
5/31/2001 9,904 9,924
6/30/2001 9,124 9,682
7/31/2001 8,672 9,587
8/31/2001 8,460 8,987
9/30/2001 7,548 8,261
10/31/2001 7,500 8,419
11/30/2001 7,072 9,065
12/31/2001 7,292 9,144
1/31/2002 6,736 9,011
2/28/2002 6,528 8,837
3/31/2002 7,276 9,169
4/30/2002 7,144 8,613
5/31/2002 6,516 8,550
6/30/2002 6,032 7,941
7/31/2002 5,156 7,322
8/31/2002 5,336 7,370
9/30/2002 4,674 6,569
10/31/2002 4,646 7,147
11/30/2002 4,778 7,568
12/31/2002 4,898 7,123
1/31/2003 4,774 6,937
2/28/2003 4,562 6,832
3/31/2003 4,798 6,899
4/30/2003 5,254 7,467
5/31/2003 5,803 7,860
6/30/2003 5,791 7,961
7/31/2003 5,475 8,101
8/31/2003 5,563 8,259
9/30/2003 5,785 8,171
10/31/2003 5,867 8,634
11/30/2003 5,896 8,710
12/31/2003 6,142 9,166
1/31/2004 6,257 9,335
2/29/2004 6,339 9,464
3/31/2004 6,368 9,322
4/30/2004 6,175 9,175
5/31/2004 6,270 9,301
6/30/2004 6,376 9,482
7/31/2004 6,331 9,168
8/31/2004 6,549 9,205
9/30/2004 6,607 9,305
10/31/2004 6,761 9,447
11/30/2004 7,048 9,829
12/31/2004 7,206 10,164
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/04
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
UTILITIES FUND 17.31% -8.55%
S&P 500 INDEX 10.89% 0.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
UTILITIES FUND
ELECTRIC UTILITIES 57%
MULTI-UTILITIES & UNREGULATED POWER 30%
GAS UTILITIES 11%
OTHER 1%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS
(% OF TOTAL NET ASSETS)
- ------------------------------------------------------
Exelon Corp. 4.6%
FirstEnergy Corp. 3.4%
Consolidated Edison, Inc. 3.3%
Progress Energy, Inc. 3.2%
Public Service Enterprise Group, Inc. 3.2%
Constellation Energy Group, Inc. 3.0%
TXU Corp. 2.9%
DTE Energy Co. 2.8%
Pinnacle West Capital Corp. 2.7%
Energy East Corp. 2.7%
- ------------------------------------------------------
Top Ten Total 31.8%
- ------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements.
48 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 75.9%
FINANCIALS 15.2%
BANKS 4.0%
Bank of America Corp. 37,360 $ 1,755,546
Wachovia Corp.+ 13,630 716,938
U.S. Bancorp 20,760 650,203
National City Corp. 16,110 604,931
Wells Fargo & Co. 8,630 536,355
KeyCorp 15,030 509,517
Comerica, Inc.+ 7,670 468,023
---------------
TOTAL BANKS 5,241,513
---------------
INSURANCE 3.6%
American International Group, Inc.+ 22,260 1,461,814
Allstate Corp. 13,650 705,978
Loews Corp. 7,100 499,130
SAFECO Corp.+ 8,970 468,593
Lincoln National Corp.+ 9,680 451,862
Chubb Corp.+ 4,530 348,357
ACE Ltd. 8,010 342,427
Prudential Financial, Inc. 6,050 332,508
Torchmark Corp. 1,840 105,138
---------------
TOTAL INSURANCE 4,715,807
---------------
DIVERSIFIED FINANCIALS 3.4%
Citigroup, Inc. 36,960 1,780,733
J.P. Morgan Chase & Co. 41,320 1,611,893
Principal Financial Group, Inc. 12,760 522,395
CIT Group, Inc. 10,810 495,314
---------------
TOTAL DIVERSIFIED FINANCIALS 4,410,335
---------------
THRIFTS & MORTGAGE FINANCE 1.9%
Fannie Mae+ 13,930 991,955
Freddie Mac 11,480 846,076
MGIC Investment Corp.+ 6,570 452,739
Countrywide Financial Corp. 3,650 135,086
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,425,856
---------------
CONSUMER FINANCE 1.3%
American Express Co. 10,920 615,560
Capital One Financial Corp.+ 6,970 586,944
Providian Financial Corp.* 26,850 442,220
---------------
TOTAL CONSUMER FINANCE 1,644,724
---------------
CAPITAL MARKETS 1.0%
Bear Stearns Cos., Inc.+ 4,780 489,042
Franklin Resources, Inc.+ 6,390 445,064
Janus Capital Group, Inc. 8,530 143,389
Morgan Stanley 2,200 122,144
Merrill Lynch & Co., Inc. 1,410 84,276
Goldman Sachs Group, Inc.+ 634 65,961
---------------
TOTAL CAPITAL MARKETS 1,349,876
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 0.0%
Equity Office Properties Trust 1,640 $ 47,757
---------------
TOTAL REAL ESTATE 47,757
---------------
TOTAL FINANCIALS 19,835,868
---------------
INFORMATION TECHNOLOGY 12.8%
SOFTWARE 2.7%
Microsoft Corp. 81,960 2,189,152
BMC Software, Inc.* 22,540 419,244
Compuware Corp.* 56,300 364,261
Oracle Corp.* 16,420 225,282
Novell, Inc.*+ 29,490 199,058
Veritas Software Corp.* 2,620 74,801
Symantec Corp.*+ 1,940 49,974
---------------
TOTAL SOFTWARE 3,521,772
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 2.6%
Intel Corp. 53,990 1,262,826
Applied Materials, Inc.*+ 37,040 633,384
Micron Technology, Inc.*+ 36,520 451,022
Broadcom Corp. -- Class A*+ 13,700 442,236
National Semiconductor Corp.+ 18,590 333,691
Texas Instruments, Inc.+ 7,560 186,127
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 3,309,286
---------------
COMPUTERS & PERIPHERALS 2.5%
International Business Machines
Corp. 18,710 1,844,432
Hewlett-Packard Co. 31,500 660,555
Dell, Inc.* 12,540 528,436
Sun Microsystems, Inc.* 31,880 171,514
Apple Computer, Inc.* 1,410 90,804
---------------
TOTAL COMPUTERS & PERIPHERALS 3,295,741
---------------
COMMUNICATIONS EQUIPMENT 2.4%
Cisco Systems, Inc.*+ 59,260 1,143,718
Motorola, Inc.+ 40,430 695,396
Comverse Technology, Inc.* 19,140 467,973
Tellabs, Inc.*+ 49,910 428,727
Qualcomm, Inc. 5,390 228,536
Scientific-Atlanta, Inc.+ 3,850 127,088
---------------
TOTAL COMMUNICATIONS EQUIPMENT 3,091,438
---------------
IT CONSULTING & SERVICES 1.7%
First Data Corp. 16,430 698,932
Affiliated Computer Services,
Inc. -- Class A*+ 7,610 458,046
Sabre Holdings Corp.+ 17,770 393,783
Computer Sciences Corp.*+ 6,830 385,007
SunGard Data Systems, Inc.*+ 9,570 271,118
---------------
TOTAL IT CONSULTING & SERVICES 2,206,886
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 49
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
OFFICE ELECTRONICS 0.5%
Xerox Corp.* 36,610 $ 622,736
---------------
TOTAL OFFICE ELECTRONICS 622,736
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Molex, Inc. 14,000 420,000
Agilent Technologies, Inc.* 760 18,316
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 438,316
---------------
INTERNET SOFTWARE & SERVICES 0.1%
Yahoo!, Inc.*+ 4,010 151,097
---------------
TOTAL INTERNET SOFTWARE & SERVICES 151,097
---------------
TOTAL INFORMATION TECHNOLOGY 16,637,272
---------------
HEALTH CARE 9.7%
PHARMACEUTICALS 5.3%
Pfizer, Inc. 78,800 2,118,932
Johnson & Johnson, Inc.+ 28,080 1,780,834
Merck & Co., Inc. 31,870 1,024,302
Wyeth 21,050 896,519
Abbott Laboratories 7,920 369,468
Forest Laboratories, Inc.*+ 6,880 308,637
Eli Lilly & Co. 2,840 161,170
Mylan Laboratories, Inc.+ 5,350 94,588
Watson Pharmaceuticals, Inc.*+ 2,780 91,212
Bristol-Myers Squibb Co. 1,020 26,132
---------------
TOTAL PHARMACEUTICALS 6,871,794
---------------
HEALTH CARE PROVIDERS & SERVICES 2.0%
WellPoint, Inc.* 6,250 718,750
Aetna, Inc. 4,480 558,880
CIGNA Corp. 6,380 520,417
Laboratory Corporation of America
Holdings*+ 9,320 464,322
Quest Diagnostics, Inc.+ 1,830 174,857
UnitedHealth Group, Inc.+ 1,560 137,327
Cardinal Health, Inc. 1,160 67,454
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,642,007
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.4%
Hospira, Inc.* 13,580 454,930
Becton, Dickinson & Co. 7,520 427,136
Bausch & Lomb, Inc.+ 6,590 424,792
Thermo Electron Corp.* 14,060 424,471
Medtronic, Inc. 2,720 135,102
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,866,431
---------------
BIOTECHNOLOGY 1.0%
Genzyme Corp.* 9,780 567,924
Amgen, Inc.*+ 4,940 316,901
Biogen Idec, Inc.*+ 3,670 244,459
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Gilead Sciences, Inc.* 2,160 $ 75,578
Chiron Corp.* 2,020 67,327
---------------
TOTAL BIOTECHNOLOGY 1,272,189
---------------
TOTAL HEALTH CARE 12,652,421
---------------
INDUSTRIALS 8.9%
INDUSTRIAL CONGLOMERATES 3.6%
General Electric Co. 81,810 2,986,065
Tyco International Ltd.+ 28,900 1,032,886
Textron, Inc. 6,410 473,058
3M Co. 2,010 164,961
---------------
TOTAL INDUSTRIAL CONGLOMERATES 4,656,970
---------------
MACHINERY 1.4%
Illinois Tool Works, Inc. 5,590 518,081
Dover Corp. 11,120 466,373
Parker Hannifin Corp. 3,970 300,688
Paccar, Inc.+ 3,310 266,389
Danaher Corp.+ 2,410 138,358
Eaton Corp.+ 1,810 130,972
Cummins, Inc. 780 65,356
---------------
TOTAL MACHINERY 1,886,217
---------------
AEROSPACE & DEFENSE 1.4%
Lockheed Martin Corp. 10,210 567,165
Northrop Grumman Corp.+ 9,930 539,795
Raytheon Co. 7,650 297,050
General Dynamics Corp. 2,770 289,742
L-3 Communications Holdings, Inc. 910 66,648
United Technologies Corp. 580 59,943
Boeing Co. 300 15,531
---------------
TOTAL AEROSPACE & DEFENSE 1,835,874
---------------
ROAD & RAIL 0.8%
Burlington Northern Santa Fe Corp. 11,760 556,365
Norfolk Southern Corp. 14,130 511,365
---------------
TOTAL ROAD & RAIL 1,067,730
---------------
COMMERCIAL SERVICES & SUPPLIES 0.8%
Cendant Corp. 24,420 570,939
Waste Management, Inc. 7,450 223,053
Robert Half International, Inc. 5,900 173,637
Monster Worldwide, Inc.*+ 1,990 66,944
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,034,573
---------------
AIR FREIGHT & COURIERS 0.5%
United Parcel Service, Inc. --
Class B+ 5,330 455,502
FedEx Corp.+ 2,560 252,134
---------------
TOTAL AIR FREIGHT & COURIERS 707,636
---------------
BUILDING PRODUCTS 0.2%
Masco Corp.+ 7,030 256,806
---------------
TOTAL BUILDING PRODUCTS 256,806
---------------
See Notes to Financial Statements.
50 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 0.2%
W.W. Grainger, Inc. 3,020 $ 201,192
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 201,192
---------------
TOTAL INDUSTRIALS 11,646,998
---------------
CONSUMER DISCRETIONARY 8.8%
MEDIA 2.8%
Comcast Corp. -- Class A* 32,570 1,083,929
Walt Disney Co.+ 32,050 890,990
Viacom, Inc. -- Class B 14,720 535,661
McGraw-Hill Cos., Inc. 4,310 394,537
Time Warner, Inc.*+ 18,840 366,250
Clear Channel Communications,
Inc.+ 6,310 211,322
Gannett Co., Inc. 1,080 88,236
---------------
TOTAL MEDIA 3,570,925
---------------
SPECIALTY RETAIL 1.6%
Home Depot, Inc. 18,980 811,205
Limited Brands, Inc.+ 19,730 454,185
Sherwin-Williams Co. 9,860 440,052
Circuit City Stores, Inc. 23,050 360,502
Toys `R' Us, Inc.*+ 1,620 33,161
TJX Cos., Inc.+ 970 24,376
Lowe's Cos., Inc.+ 90 5,183
---------------
TOTAL SPECIALTY RETAIL 2,128,664
---------------
HOTELS RESTAURANTS & LEISURE 1.3%
Marriott International, Inc. --
Class A 8,710 548,556
Starwood Hotels & Resorts
Worldwide, Inc.+ 9,100 531,440
Carnival Corp.+ 7,330 422,428
McDonald's Corp. 3,160 101,310
Starbucks Corp.* 170 10,601
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,614,335
---------------
MULTILINE RETAIL 0.8%
JC Penney Holding Co., Inc.+ 10,810 447,534
Federated Department Stores, Inc. 7,350 424,757
Nordstrom, Inc. 1,710 79,908
Target Corp. 600 31,158
---------------
TOTAL MULTILINE RETAIL 983,357
---------------
TEXTILES & APPAREL 0.7%
Nike, Inc. -- Class B 6,160 558,650
Jones Apparel Group, Inc. 10,940 400,076
---------------
TOTAL TEXTILES & APPAREL 958,726
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AUTOMOBILES 0.6%
Ford Motor Co.+ 42,890 $ 627,910
Harley-Davidson, Inc. 2,950 179,212
---------------
TOTAL AUTOMOBILES 807,122
---------------
INTERNET & CATALOG RETAIL 0.5%
eBay, Inc.*+ 6,020 700,006
---------------
TOTAL INTERNET & CATALOG RETAIL 700,006
---------------
DISTRIBUTORS 0.3%
Genuine Parts Co. 9,600 422,976
---------------
TOTAL DISTRIBUTORS 422,976
---------------
HOUSEHOLD DURABLES 0.1%
Leggett & Platt, Inc.+ 3,640 103,485
Stanley Works 700 34,293
---------------
TOTAL HOUSEHOLD DURABLES 137,778
---------------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Brunswick Corp. 2,360 116,820
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 116,820
---------------
TOTAL CONSUMER DISCRETIONARY 11,440,709
---------------
CONSUMER STAPLES 8.0%
FOOD & DRUG RETAILING 2.4%
Wal-Mart Stores, Inc. 30,270 1,598,862
Costco Wholesale Corp.+ 11,920 577,047
Albertson's, Inc.+ 19,240 459,451
Supervalu, Inc.+ 13,260 457,735
Walgreen Co. 2,570 98,611
---------------
TOTAL FOOD & DRUG RETAILING 3,191,706
---------------
BEVERAGES 1.7%
Coca-Cola Co. 11,690 486,654
Brown-Forman Corp. -- Class B 9,200 447,856
Pepsi Bottling Group, Inc.+ 16,020 433,181
Adolph Coors Co. -- Class B+ 5,530 418,455
PepsiCo, Inc. 7,380 385,236
---------------
TOTAL BEVERAGES 2,171,382
---------------
HOUSEHOLD PRODUCTS 1.6%
Procter & Gamble Co. 16,630 915,980
Kimberly-Clark Corp. 10,290 677,185
Clorox Co. 8,050 474,387
---------------
TOTAL HOUSEHOLD PRODUCTS 2,067,552
---------------
TOBACCO 1.2%
Altria Group, Inc.+ 24,680 1,507,948
---------------
TOTAL TOBACCO 1,507,948
---------------
FOOD PRODUCTS 0.8%
Archer-Daniels-Midland Co. 23,450 523,170
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 51
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
McCormick & Co., Inc.+ 8,020 $ 309,572
Sara Lee Corp. 11,360 274,230
---------------
TOTAL FOOD PRODUCTS 1,106,972
---------------
PERSONAL PRODUCTS 0.3%
Gillette Co.+ 8,130 364,061
---------------
TOTAL PERSONAL PRODUCTS 364,061
---------------
TOTAL CONSUMER STAPLES 10,409,621
---------------
ENERGY 5.4%
OIL & GAS 5.3%
Exxon Mobil Corp. 62,790 3,218,616
ConocoPhillips 10,550 916,057
ChevronTexaco Corp.+ 11,300 593,363
Burlington Resources, Inc.+ 12,530 545,055
Occidental Petroleum Corp. 9,140 533,410
Amerada Hess Corp.+ 4,630 381,419
Devon Energy Corp. 9,470 368,572
Valero Energy Corp.+ 5,320 241,528
Anadarko Petroleum Corp. 1,090 70,643
---------------
TOTAL OIL & GAS 6,868,663
---------------
ENERGY EQUIPMENT & SERVICES 0.1%
Transocean, Inc.*+ 3,400 144,126
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 144,126
---------------
TOTAL ENERGY 7,012,789
---------------
TELECOMMUNICATION SERVICES 2.5%
DIVERSIFIED TELECOMMUNICATION SERVICES 2.5%
SBC Communications, Inc. 43,380 1,117,903
BellSouth Corp. 25,950 721,150
Verizon Communications, Inc.+ 15,160 614,132
Alltel Corp. 9,310 547,056
CenturyTel, Inc.+ 6,120 217,076
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 3,217,317
---------------
TOTAL TELECOMMUNICATION SERVICES 3,217,317
---------------
MATERIALS 2.4%
PAPER & FOREST PRODUCTS 1.1%
Georgia-Pacific Corp.+ 11,900 446,012
MeadWestvaco Corp. 13,090 443,620
Louisiana-Pacific Corp.+ 11,080 296,279
Weyerhaeuser Co. 3,630 244,009
---------------
TOTAL PAPER & FOREST PRODUCTS 1,429,920
---------------
METALS & MINING 0.8%
Phelps Dodge Corp.+ 4,980 492,622
Nucor Corp.+ 6,850 358,529
Newmont Mining Corp.+ 5,650 250,916
---------------
TOTAL METALS & MINING 1,102,067
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CHEMICALS 0.5%
Monsanto Co.+ 10,650 $ 591,607
Dow Chemical Co. 480 23,765
EI Du Pont de Nemours & Co. 320 15,696
---------------
TOTAL CHEMICALS 631,068
---------------
TOTAL MATERIALS 3,163,055
---------------
UTILITIES 2.2%
ELECTRIC UTILITIES 1.8%
Exelon Corp.+ 15,170 668,542
American Electric Power Co., Inc.+ 14,900 511,666
FirstEnergy Corp. 12,780 504,938
PPL Corp. 9,170 488,577
Entergy Corp.+ 3,240 218,992
TXU Corp. 140 9,038
---------------
TOTAL ELECTRIC UTILITIES 2,401,753
---------------
MULTI-UTILITIES 0.4%
Duke Energy Corp.+ 13,160 333,343
Constellation Energy Group, Inc. 3,260 142,495
---------------
TOTAL MULTI-UTILITIES 475,838
---------------
TOTAL UTILITIES 2,877,591
---------------
TOTAL COMMON STOCKS
(Cost $88,750,718) 98,893,641
---------------
FACE
AMOUNT
--------------
REPURCHASE AGREEMENTS 20.2%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 6,527,151 6,527,151
1.48% due 01/03/05 13,240,092 13,240,092
1.25% due 01/03/05 6,481,164 6,481,164
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $26,248,407) 26,248,407
---------------
SECURITIES LENDING COLLATERAL 10.6%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 13,804,518 13,804,518
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $13,804,518) 13,804,518
---------------
TOTAL INVESTMENTS 106.7%
(Cost $128,803,643) $ 138,946,566
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.7)% $ (8,746,536)
===============
NET ASSETS - 100.0% $ 130,200,030
==============================================================================
See Notes to Financial Statements.
52 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $96,473,250) 1,590 $ 1,090,290
===============
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 53
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
URSA FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 47.2%
Fannie Mae*
2.17% due 01/07/05 $ 2,000,000 $ 1,999,518
Federal Farm Credit Bank*
2.18% due 01/06/05 3,000,000 2,999,455
Federal Home Loan Bank*
2.20% due 01/07/05 2,000,000 1,999,511
Freddie Mac*
2.21% due 01/14/05 2,000,000 1,998,649
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $8,997,133) 8,997,133
---------------
REPURCHASE AGREEMENTS 46.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 2,207,968 2,207,968
1.48% due 01/03/05 4,478,783 4,478,783
1.25% due 01/03/05 2,192,412 2,192,412
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,879,163) 8,879,163
---------------
TOTAL INVESTMENTS 93.7%
(Cost $17,876,296) $ 17,876,296
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 6.3% $ 1,199,328
===============
NET ASSETS - 100.0% $ 19,075,624
==============================================================================
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $19,051,950) 314 $ (407,049)
===============
* 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.
See Notes to Financial Statements.
54 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 89.4%
INFORMATION TECHNOLOGY 53.2%
SOFTWARE 17.4%
Microsoft Corp. 572,830 $ 15,300,289
Oracle Corp.* 355,250 4,874,030
Electronic Arts, Inc.*+ 39,560 2,440,061
Adobe Systems, Inc.+ 36,640 2,298,794
Symantec Corp.*+ 89,200 2,297,792
Veritas Software Corp.* 54,880 1,566,824
Mercury Interactive Corp.*+ 30,290 1,379,709
Check Point Software
Technologies Ltd.*+ 30,120 741,856
Siebel Systems, Inc.* 61,110 641,655
Citrix Systems, Inc.* 22,800 559,284
BEA Systems, Inc.* 51,350 454,961
Intuit, Inc.*+ 10,150 446,701
Synopsys, Inc.*+ 13,260 260,161
---------------
TOTAL SOFTWARE 33,262,117
---------------
COMMUNICATIONS EQUIPMENT 12.7%
Qualcomm, Inc. 260,110 11,028,664
Cisco Systems, Inc.*+ 351,310 6,780,283
Comverse Technology, Inc.*+ 122,120 2,985,834
Research In Motion Ltd.*+ 24,890 2,051,434
Juniper Networks, Inc.*+ 40,400 1,098,476
Tellabs, Inc.*+ 34,610 297,300
JDS Uniphase Corp.*+ 53,190 168,612
---------------
TOTAL COMMUNICATIONS EQUIPMENT 24,410,603
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 12.1%
Intel Corp. 318,670 7,453,691
Maxim Integrated Products, Inc.+ 72,540 3,074,971
Applied Materials, Inc.*+ 132,850 2,271,735
Xilinx, Inc.+ 55,010 1,631,047
KLA-Tencor Corp.*+ 33,470 1,559,033
Lam Research Corp.*+ 53,770 1,554,491
Broadcom Corp. -- Class A*+ 42,780 1,380,938
Altera Corp.*+ 63,990 1,324,593
Microchip Technology, Inc. 33,020 880,313
ATI Technologies, Inc.* 38,780 751,944
Novellus Systems, Inc.*+ 20,200 563,378
Marvell Technology Group Ltd.*+ 13,000 461,110
Intersil Corp. -- Class A 10,480 175,435
Linear Technology Corp. 4,420 171,319
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 23,253,998
---------------
COMPUTERS & PERIPHERALS 6.6%
Dell, Inc.*+ 143,590 6,050,883
Apple Computer, Inc.* 71,210 4,585,924
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Sun Microsystems, Inc.* 163,910 $ 881,836
Sandisk Corp.*+ 20,130 502,646
QLogic Corp.*+ 12,410 455,819
Network Appliance, Inc.*+ 5,600 186,032
---------------
TOTAL COMPUTERS & PERIPHERALS 12,663,140
---------------
INTERNET SOFTWARE & SERVICES 2.3%
Yahoo!, Inc.*+ 96,080 3,620,294
VeriSign, Inc.*+ 20,990 703,585
---------------
TOTAL INTERNET SOFTWARE & SERVICES 4,323,879
---------------
IT CONSULTING & SERVICES 1.3%
Paychex, Inc.+ 51,010 1,738,421
Cognizant Technology Solutions
Corp.* 16,240 687,439
---------------
TOTAL IT CONSULTING & SERVICES 2,425,860
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.8%
Flextronics International Ltd.*+ 78,280 1,081,830
Sanmina-SCI Corp.*+ 52,750 446,792
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,528,622
---------------
TOTAL INFORMATION TECHNOLOGY 101,868,219
---------------
CONSUMER DISCRETIONARY 15.7%
INTERNET & CATALOG RETAIL 6.2%
eBay, Inc.*+ 64,540 7,504,711
InterActiveCorp*+ 87,940 2,428,903
Amazon.com, Inc.*+ 41,690 1,846,450
---------------
TOTAL INTERNET & CATALOG RETAIL 11,780,064
---------------
MEDIA 3.3%
Comcast Corp. -- Class A*+ 124,890 4,156,339
EchoStar Communications Corp.+ 41,140 1,367,493
Lamar Advertising Co.*+ 13,010 556,568
Pixar* 2,570 220,018
---------------
TOTAL MEDIA 6,300,418
---------------
SPECIALTY RETAIL 2.6%
Staples, Inc.+ 62,540 2,108,224
Bed Bath & Beyond, Inc.*+ 43,840 1,746,147
Petsmart, Inc.+ 17,830 633,500
Ross Stores, Inc.+ 17,130 494,543
---------------
TOTAL SPECIALTY RETAIL 4,982,414
---------------
HOTELS, RESTAURANTS & LEISURE 2.4%
Starbucks Corp.*+ 74,070 4,619,005
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 4,619,005
---------------
MULTILINE RETAIL 0.8%
Kmart Holding Corp.*+ 13,530 1,338,794
Dollar Tree Stores, Inc.*+ 7,550 216,534
---------------
TOTAL MULTILINE RETAIL 1,555,328
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 55
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HOUSEHOLD DURABLES 0.4%
Garmin Ltd.+ 14,030 $ 853,585
---------------
TOTAL HOUSEHOLD DURABLES 853,585
---------------
TOTAL CONSUMER DISCRETIONARY 30,090,814
---------------
HEALTH CARE 11.1%
BIOTECHNOLOGY 7.9%
Amgen, Inc.*+ 64,260 4,122,279
Biogen Idec, Inc.*+ 48,670 3,241,909
Genzyme Corp.* 42,020 2,440,101
Gilead Sciences, Inc.*+ 67,070 2,346,779
Chiron Corp.* 39,100 1,303,203
Millennium Pharmaceuticals, Inc.*+ 58,930 714,232
Invitrogen Corp.*+ 8,980 602,827
Medimmune, Inc.*+ 14,280 387,131
---------------
TOTAL BIOTECHNOLOGY 15,158,461
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.3%
Biomet, Inc. 42,670 1,851,451
DENTSPLY International, Inc. 13,018 731,612
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,583,063
---------------
HEALTH CARE PROVIDERS & SERVICES 1.0%
Express Scripts, Inc.*+ 10,210 780,453
Patterson Cos., Inc.*+ 13,870 601,819
Lincare Holdings, Inc.* 11,840 504,976
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,887,248
---------------
PHARMACEUTICALS 0.9%
Teva Pharmaceutical Industries
Ltd. - SP ADR+ 57,900 1,728,894
---------------
TOTAL PHARMACEUTICALS 1,728,894
---------------
TOTAL HEALTH CARE 21,357,666
---------------
INDUSTRIALS 4.5%
COMMERCIAL SERVICES & SUPPLIES 2.0%
Apollo Group, Inc. -- Class A*+ 26,530 2,141,236
Cintas Corp.+ 25,120 1,101,763
Career Education Corp.*+ 14,580 583,200
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,826,199
---------------
MACHINERY 1.1%
Paccar, Inc.+ 25,550 2,056,264
---------------
TOTAL MACHINERY 2,056,264
---------------
AIR FREIGHT & COURIERS 0.8%
Expeditors International Washington,
Inc.+ 13,730 767,233
C.H. Robinson Worldwide, Inc.+ 12,870 714,542
---------------
TOTAL AIR FREIGHT & COURIERS 1,481,775
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
Fastenal Co.+ 11,010 $ 677,776
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 677,776
---------------
ELECTRICAL EQUIPMENT 0.3%
American Power Conversion Corp.+ 22,780 487,492
---------------
TOTAL ELECTRICAL EQUIPMENT 487,492
---------------
TOTAL INDUSTRIALS 8,529,506
---------------
TELECOMMUNICATION SERVICES 3.0%
WIRELESS TELECOMMUNICATION SERVICES 2.8%
Nextel Communications, Inc. --
Class A*+ 181,630 5,448,900
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 5,448,900
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
Level 3 Communications, Inc.*+ 88,780 300,964
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 300,964
---------------
TOTAL TELECOMMUNICATION SERVICES 5,749,864
---------------
CONSUMER STAPLES 1.3%
FOOD & DRUG RETAILING 1.3%
Costco Wholesale Corp.+ 30,740 1,488,123
Whole Foods Market, Inc.+ 9,770 931,570
---------------
TOTAL FOOD & DRUG RETAILING 2,419,693
---------------
TOTAL CONSUMER STAPLES 2,419,693
---------------
MATERIALS 0.6%
CONTAINERS & PACKAGING 0.4%
Smurfit-Stone Container Corp.*+ 37,760 705,357
---------------
TOTAL CONTAINERS & PACKAGING 705,357
---------------
CHEMICALS 0.2%
Sigma-Aldrich Corp.+ 7,420 448,613
---------------
TOTAL CHEMICALS 448,613
---------------
TOTAL MATERIALS 1,153,970
---------------
TOTAL COMMON STOCKS
(Cost $124,122,987) 171,169,732
---------------
FACE
AMOUNT
--------------
REPURCHASE AGREEMENTS 9.9%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 4,717,767 4,717,767
1.48% due 01/03/05 9,569,821 9,569,821
1.25% due 01/03/05 4,684,528 4,684,528
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $18,972,116) 18,972,116
---------------
See Notes to Financial Statements.
56 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 19.4%
Investment in Securities Lending Short
Term Investment Portfolio Held by
U.S. Bank (Note 8) $ 37,093,297 $ 37,093,297
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $37,093,297) 37,093,297
---------------
TOTAL INVESTMENTS 118.7%
(Cost $180,188,400) $ 227,235,145
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.7)% $ (35,758,824)
===============
NET ASSETS - 100.0% $ 191,476,321
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $20,506,500) 630 $ 169,190
===============
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 57
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
ARKTOS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 29.2%
Farmer Mac*
2.12% due 01/14/05 $ 2,000,000 $ 1,998,704
Federal Farm Credit Bank*
2.18% due 01/06/05 2,000,000 1,999,637
Federal Home Loan Bank*
2.15% due 01/05/05 3,000,000 2,999,642
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $6,997,983) 6,997,983
---------------
REPURCHASE AGREEMENTS 71.7%
Repurchase Agreement (Note 5)
1.55% due 01/03/05+ 5,832,417 5,832,417
1.48% due 01/03/05 7,598,214 7,598,214
1.25% due 01/03/05 3,719,405 3,719,405
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $17,150,036) 17,150,036
---------------
TOTAL INVESTMENTS 100.9%
(Cost $24,148,019) $ 24,148,019
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.9)% $ (220,322)
===============
NET ASSETS - 100.0% $ 23,927,697
==============================================================================
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $3,417,750) 105 $ (21,331)
===============
UNITS
--------------
EQUITY INDEX SWAP AGREEMENT
March 2005 Nasdaq 100 Index Swap,
Maturing 03/14/05**
(Notional Market Value $20,474,208) 12,630 $ 23,244
---------------
* 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.
** PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
See Notes to Financial Statements.
58 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 66.4%
FINANCIALS 13.7%
BANKS 4.0%
Bank of America Corp. 6,910 $ 324,701
Wells Fargo & Co. 2,890 179,613
Wachovia Corp. 2,745 144,387
U.S. Bancorp 3,190 99,911
SunTrust Banks, Inc. 630 46,544
Fifth Third Bancorp 960 45,389
National City Corp. 1,160 43,558
BB&T Corp. 940 39,527
Regions Financial Corp. 790 28,116
PNC Financial Services Group, Inc. 484 27,801
KeyCorp 700 23,730
North Fork Bancorporation, Inc. 805 23,224
M&T Bank Corp. 200 21,568
Comerica, Inc. 290 17,696
Marshall & Ilsley Corp. 380 16,796
AmSouth Bancorp+ 610 15,799
Synovus Financial Corp. 530 15,147
Compass Bancshares, Inc. 210 10,221
Zions Bancorporation 150 10,205
Huntington Bancshares, Inc. 400 9,912
First Horizon National Corp. 210 9,053
---------------
TOTAL BANKS 1,152,898
---------------
INSURANCE 2.8%
American International Group, Inc.+ 4,450 292,231
Allstate Corp. 1,170 60,512
MetLife, Inc. 1,270 51,448
Prudential Financial, Inc. 880 48,365
St. Paul Travelers Cos., Inc. 1,150 42,631
AFLAC, Inc. 870 34,661
Hartford Financial Services Group, Inc. 500 34,655
Marsh & McLennan Cos., Inc. 900 29,610
Progressive Corp. 340 28,846
Chubb Corp.+ 330 25,377
Loews Corp. 320 22,496
ACE Ltd. 494 21,119
XL Capital Ltd. 240 18,636
Ambac Financial Group, Inc. 190 15,605
MBIA, Inc. 240 15,187
Lincoln National Corp.+ 300 14,004
Aon Corp. 540 12,884
Cincinnati Financial Corp. 290 12,835
Jefferson-Pilot Corp. 230 11,951
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SAFECO Corp.+ 220 $ 11,493
Torchmark Corp. 180 10,285
UnumProvident Corp.+ 510 9,149
---------------
TOTAL INSURANCE 823,980
---------------
DIVERSIFIED FINANCIALS 2.5%
Citigroup, Inc. 8,879 427,790
J.P. Morgan Chase & Co. 6,090 237,571
Moody's Corp. 250 21,713
Principal Financial Group, Inc. 530 21,698
CIT Group, Inc. 360 16,495
---------------
TOTAL DIVERSIFIED FINANCIALS 725,267
---------------
CAPITAL MARKETS 1.9%
Morgan Stanley 1,870 103,822
Merrill Lynch & Co., Inc. 1,590 95,034
Goldman Sachs Group, Inc.+ 830 86,353
Bank of New York Co., Inc. 1,330 44,449
Lehman Brothers Holdings, Inc. 460 40,241
Franklin Resources, Inc. 430 29,949
State Street Corp. 574 28,195
Charles Schwab Corp. 2,300 27,508
Mellon Financial Corp. 720 22,399
Bear Stearns Cos., Inc. 180 18,416
Northern Trust Corp. 370 17,975
T. Rowe Price Group, Inc. 220 13,684
E*Trade Financial Corp.* 640 9,568
Janus Capital Group, Inc. 400 6,724
Federated Investors, Inc. -- Class B 180 5,472
---------------
TOTAL CAPITAL MARKETS 549,789
---------------
THRIFTS & MORTGAGE FINANCE 1.2%
Fannie Mae+ 1,664 118,493
Freddie Mac 1,180 86,966
Washington Mutual, Inc. 1,490 62,997
Countrywide Financial Corp. 990 36,640
Golden West Financial Corp. 520 31,938
Sovereign Bancorp, Inc. 590 13,305
MGIC Investment Corp. 170 11,715
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 362,054
---------------
CONSUMER FINANCE 0.9%
American Express Co. 2,150 121,196
MBNA Corp. 2,190 61,736
SLM Corp. 740 39,509
Capital One Financial Corp.+ 420 35,368
Providian Financial Corp.* 500 8,235
---------------
TOTAL CONSUMER FINANCE 266,044
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 59
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 0.4%
Simon Property Group, Inc. 380 $ 24,575
Equity Office Properties Trust 690 20,093
Equity Residential 480 17,367
ProLogis 310 13,432
Archstone-Smith Trust 330 12,639
Plum Creek Timber (REIT) Co., Inc. 310 11,916
Apartment Investment & Management
Co. -- Class A 160 6,166
---------------
TOTAL REAL ESTATE 106,188
---------------
TOTAL FINANCIALS 3,986,220
---------------
INFORMATION TECHNOLOGY 10.7%
SOFTWARE 2.9%
Microsoft Corp. 18,590 496,539
Oracle Corp.* 8,770 120,324
Electronic Arts, Inc.* 520 32,074
Computer Associates International,
Inc. 1,000 31,060
Symantec Corp.*+ 1,080 27,821
Adobe Systems, Inc. 410 25,723
Veritas Software Corp.* 720 20,556
Autodesk, Inc. 390 14,801
Intuit, Inc.*+ 320 14,083
Siebel Systems, Inc.* 870 9,135
Citrix Systems, Inc.* 290 7,114
BMC Software, Inc.* 380 7,068
Mercury Interactive Corp.* 140 6,377
Novell, Inc.* 640 4,320
Compuware Corp.* 660 4,270
Parametric Technology Corp.*+ 460 2,709
---------------
TOTAL SOFTWARE 823,974
---------------
COMPUTERS & PERIPHERALS 2.6%
International Business Machines, Corp. 2,851 281,051
Dell, Inc.* 4,250 179,095
Hewlett-Packard Co. 5,171 108,436
EMC Corp./MA* 4,100 60,967
Apple Computer, Inc.* 690 44,436
Sun Microsystems, Inc.* 5,749 30,930
Network Appliance, Inc.* 610 20,264
Lexmark International, Inc.* 220 18,700
NCR Corp.* 164 11,354
QLogic Corp.* 160 5,877
Gateway, Inc.* 640 3,846
---------------
TOTAL COMPUTERS & PERIPHERALS 764,956
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.0%
Intel Corp. 10,810 252,846
Texas Instruments, Inc.+ 2,959 72,851
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Applied Materials, Inc.* 2,900 $ 49,590
Maxim Integrated Products, Inc. 560 23,738
Analog Devices, Inc. 640 23,629
Linear Technology Corp. 530 20,543
Broadcom Corp. -- Class A*+ 560 18,077
Xilinx, Inc.+ 600 17,790
KLA-Tencor Corp.* 330 15,371
Advanced Micro Devices, Inc.*+ 660 14,533
Altera Corp.* 640 13,248
Micron Technology, Inc.*+ 1,050 12,967
Freescale Semiconductor,
Inc. -- Class B* 670 12,301
National Semiconductor Corp.+ 610 10,950
Novellus Systems, Inc.* 240 6,694
Nvidia Corp.* 280 6,597
Teradyne, Inc.* 330 5,633
LSI Logic Corp.* 660 3,617
PMC - Sierra, Inc.* 300 3,375
Applied Micro Circuits Corp.* 530 2,231
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 586,581
---------------
COMMUNICATIONS EQUIPMENT 1.8%
Cisco Systems, Inc.* 11,260 217,318
Qualcomm, Inc. 2,800 118,720
Motorola, Inc. 4,161 71,569
Lucent Technologies, Inc.* 7,559 28,422
Corning, Inc.*+ 2,400 28,248
Avaya, Inc.* 780 13,416
Scientific-Atlanta, Inc. 260 8,583
Comverse Technology, Inc.* 340 8,313
JDS Uniphase Corp.*+ 2,470 7,830
Tellabs, Inc.* 790 6,786
Andrew Corp.* 280 3,817
ADC Telecommunications, Inc.* 1,380 3,698
CIENA Corp.* 980 3,273
---------------
TOTAL COMMUNICATIONS EQUIPMENT 519,993
---------------
IT CONSULTING & SERVICES 0.8%
First Data Corp. 1,420 60,407
Automatic Data Processing, Inc. 1,000 44,350
Paychex, Inc. 650 22,152
Electronic Data Systems Corp. 880 20,328
Computer Sciences Corp.* 320 18,038
SunGard Data Systems, Inc.* 490 13,882
Fiserv, Inc.* 330 13,263
Affiliated Computer Services,
Inc. -- Class A* 220 13,242
Unisys Corp.* 570 5,802
See Notes to Financial Statements.
60 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Sabre Holdings Corp. 234 $ 5,185
Convergys Corp.* 240 3,598
---------------
TOTAL IT CONSULTING & SERVICES 220,247
---------------
INTERNET SOFTWARE & SERVICES 0.3%
Yahoo!, Inc.*+ 2,350 88,548
---------------
TOTAL INTERNET SOFTWARE & SERVICES 88,548
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.2%
Agilent Technologies, Inc.* 830 20,003
Molex, Inc. 320 9,600
Solectron Corp.*+ 1,660 8,848
Jabil Circuit, Inc.* 340 8,697
Sanmina-SCI Corp.* 890 7,538
Symbol Technologies, Inc. 410 7,093
Tektronix, Inc. 150 4,532
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 66,311
---------------
OFFICE ELECTRONICS 0.1%
Xerox Corp.* 1,630 27,726
---------------
TOTAL OFFICE ELECTRONICS 27,726
---------------
TOTAL INFORMATION TECHNOLOGY 3,098,336
---------------
HEALTH CARE 8.4%
PHARMACEUTICALS 4.5%
Pfizer, Inc. 12,880 346,343
Johnson & Johnson, Inc. 5,084 322,427
Abbott Laboratories 2,660 124,089
Merck & Co., Inc. 3,790 121,811
Eli Lilly & Co. 1,940 110,095
Wyeth 2,280 97,105
Bristol-Myers Squibb Co. 3,331 85,340
Schering-Plough Corp. 2,520 52,618
Forest Laboratories, Inc.*+ 634 28,441
Allergan, Inc. 220 17,835
Mylan Laboratories, Inc. 460 8,133
Watson Pharmaceuticals, Inc.* 190 6,234
King Pharmaceuticals, Inc.* 410 5,084
---------------
TOTAL PHARMACEUTICALS 1,325,555
---------------
HEALTH CARE PROVIDERS & SERVICES 1.5%
UnitedHealth Group, Inc. 1,120 98,594
WellPoint, Inc.* 500 57,500
Cardinal Health, Inc. 740 43,031
Aetna, Inc. 250 31,188
Caremark Rx, Inc.*+ 780 30,755
HCA, Inc. 720 28,771
Medco Health Solutions, Inc.*+ 470 19,552
CIGNA Corp. 230 18,761
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Quest Diagnostics, Inc. 170 $ 16,244
McKesson Corp. 500 15,730
Laboratory Corporation of America
Holdings* 240 11,957
AmerisourceBergen Corp. 180 10,562
Express Scripts, Inc.* 130 9,937
Health Management Associates,
Inc. -- Class A 420 9,542
IMS Health, Inc. 400 9,284
Tenet Healthcare Corp.* 800 8,784
Humana, Inc.* 270 8,016
Manor Care, Inc. 150 5,315
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 433,523
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.5%
Medtronic, Inc. 2,070 102,817
Boston Scientific Corp.* 1,440 51,192
Guidant Corp. 540 38,934
Baxter International, Inc. 1,050 36,267
Zimmer Holdings, Inc.* 420 33,650
Stryker Corp. 690 33,293
St. Jude Medical, Inc.* 610 25,577
Becton, Dickinson & Co. 430 24,424
Biomet, Inc. 430 18,658
Fisher Scientific International, Inc.* 200 12,476
C.R. Bard, Inc. 180 11,516
Waters Corp.* 210 9,826
Hospira, Inc.* 270 9,045
Thermo Electron Corp.* 270 8,151
Bausch & Lomb, Inc. 90 5,801
PerkinElmer, Inc. 220 4,948
Millipore Corp.* 90 4,483
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 431,058
---------------
BIOTECHNOLOGY 0.9%
Amgen, Inc.* 2,170 139,206
Biogen Idec, Inc.* 570 37,968
Gilead Sciences, Inc.* 740 25,893
Genzyme Corp.* 420 24,389
Medimmune, Inc.* 430 11,657
Chiron Corp.* 320 10,666
Applera Corp. - Applied Biosystems
Group 340 7,109
---------------
TOTAL BIOTECHNOLOGY 256,888
---------------
TOTAL HEALTH CARE 2,447,024
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 61
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER DISCRETIONARY 7.9%
MEDIA 2.6%
Time Warner, Inc.* 7,831 $ 152,235
Comcast Corp. -- Class A* 3,800 126,464
Viacom, Inc. -- Class B 2,924 106,404
Walt Disney Co.+ 3,490 97,022
News Corp. -- Class A 4,470 83,410
Gannett Co., Inc. 440 35,948
Clear Channel Communications, Inc. 980 32,820
McGraw-Hill Cos., Inc. 320 29,293
Omnicom Group 320 26,982
Tribune Co. 540 22,756
Univision Communications,
Inc. -- Class A* 550 16,099
New York Times Co. -- Class A+ 250 10,200
Interpublic Group of Cos., Inc.* 720 9,648
Knight-Ridder, Inc. 130 8,702
Dow Jones & Co., Inc. 140 6,028
Meredith Corp. 90 4,878
---------------
TOTAL MEDIA 768,889
---------------
SPECIALTY RETAIL 1.6%
Home Depot, Inc. 3,760 160,702
Lowe's Cos., Inc.+ 1,320 76,019
Best Buy Co., Inc. 550 32,681
The Gap, Inc. 1,500 31,680
Staples, Inc. 850 28,653
TJX Cos., Inc.+ 820 20,607
Bed Bath & Beyond, Inc.* 510 20,313
Limited Brands, Inc. 700 16,114
AutoZone, Inc.* 140 12,783
Sherwin-Williams Co. 240 10,711
Office Depot, Inc.* 530 9,201
RadioShack Corp. 270 8,878
AutoNation, Inc.*+ 450 8,645
Tiffany & Co.+ 250 7,993
Toys `R' Us, Inc.* 370 7,574
Circuit City Stores, Inc. 330 5,161
OfficeMax, Inc. 160 5,021
---------------
TOTAL SPECIALTY RETAIL 462,736
---------------
HOTELS RESTAURANTS & LEISURE 1.0%
McDonald's Corp. 2,150 68,929
Carnival Corp. 1,080 62,241
Starbucks Corp.* 680 42,405
Marriott International, Inc. --
Class A 384 24,184
Yum! Brands, Inc. 500 23,590
Starwood Hotels & Resorts Worldwide,
Inc.+ 350 20,440
International Game Technology, Inc. 590 20,284
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Hilton Hotels Corp. 660 $ 15,009
Harrah's Entertainment, Inc. 190 12,709
Darden Restaurants, Inc. 270 7,490
Wendy's International, Inc. 190 7,459
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 304,740
---------------
MULTILINE RETAIL 0.7%
Target Corp. 1,530 79,453
Kohl's Corp.*+ 590 29,010
JC Penney Holding Co., Inc.+ 490 20,286
Sears Roebuck and Co. 350 17,861
Federated Department Stores, Inc. 290 16,759
May Department Stores Co.+ 500 14,700
Dollar General Corp. 560 11,631
Nordstrom, Inc. 240 11,215
Family Dollar Stores, Inc. 290 9,057
Dillard's, Inc./AR -- Class A 140 3,762
Big Lots, Inc.* 190 2,305
---------------
TOTAL MULTILINE RETAIL 216,039
---------------
INTERNET & CATALOG RETAIL 0.5%
eBay, Inc.*+ 1,130 131,396
---------------
TOTAL INTERNET & CATALOG RETAIL 131,396
---------------
AUTOMOBILES 0.4%
Ford Motor Co. 3,134 45,882
General Motors Corp.+ 970 38,858
Harley-Davidson, Inc. 500 30,375
---------------
TOTAL AUTOMOBILES 115,115
---------------
HOUSEHOLD DURABLES 0.4%
Fortune Brands, Inc. 250 19,295
Pulte Homes, Inc. 220 14,036
Centex Corp.+ 210 12,512
Black & Decker Corp. 140 12,366
Newell Rubbermaid, Inc. 470 11,369
Leggett & Platt, Inc.+ 330 9,382
KB Home 80 8,352
Whirlpool Corp. 110 7,613
Stanley Works 140 6,859
Snap-On, Inc. 100 3,436
Maytag Corp.+ 140 2,954
---------------
TOTAL HOUSEHOLD DURABLES 108,174
---------------
TEXTILES & APPAREL 0.3%
Nike, Inc. -- Class B 450 40,810
Coach, Inc.* 320 18,048
VF Corp. 190 10,522
Liz Claiborne, Inc. 190 8,020
Jones Apparel Group, Inc. 210 7,680
Reebok International Ltd. 100 4,400
---------------
TOTAL TEXTILES & APPAREL 89,480
---------------
See Notes to Financial Statements.
62 | THE RYDEX VARIABLE TRUST ANNUAL6 REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AUTO COMPONENTS 0.2%
Johnson Controls, Inc.+ 330 $ 20,935
Delphi Corp.+ 960 8,659
Dana Corp. 260 4,506
Goodyear Tire & Rubber Co.* 300 4,398
Cooper Tire & Rubber Co. 130 2,802
Visteon Corp. 220 2,149
---------------
TOTAL AUTO COMPONENTS 43,449
---------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Eastman Kodak Co.+ 490 15,802
Mattel, Inc. 710 13,838
Brunswick Corp. 160 7,920
Hasbro, Inc. 300 5,814
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 43,374
---------------
DISTRIBUTORS 0.0%
Genuine Parts Co. 300 13,218
---------------
TOTAL DISTRIBUTORS 13,218
---------------
TOTAL CONSUMER DISCRETIONARY 2,296,610
---------------
INDUSTRIALS 7.8%
INDUSTRIAL CONGLOMERATES 3.1%
General Electric Co. 18,080 659,920
Tyco International Ltd.+ 3,445 123,124
3M Co. 1,330 109,153
Textron, Inc. 240 17,712
---------------
TOTAL INDUSTRIAL CONGLOMERATES 909,909
---------------
AEROSPACE & DEFENSE 1.3%
United Technologies Corp. 874 90,328
Boeing Co. 1,440 74,549
Honeywell International, Inc. 1,470 52,052
Lockheed Martin Corp. 760 42,218
General Dynamics Corp. 340 35,564
Northrop Grumman Corp. 630 34,247
Raytheon Co. 770 29,899
L-3 Communications Holdings, Inc. 200 14,648
Rockwell Collins, Inc. 300 11,832
Goodrich Corp. 200 6,528
---------------
TOTAL AEROSPACE & DEFENSE 391,865
---------------
MACHINERY 1.0%
Caterpillar, Inc. 580 56,556
Illinois Tool Works, Inc. 510 47,267
Deere & Co. 420 31,248
Danaher Corp.+ 530 30,427
Paccar, Inc. 300 24,144
Ingersoll-Rand Co. -- Class A 290 23,287
Eaton Corp. 260 18,814
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Parker Hannifin Corp. 200 $ 15,148
Dover Corp. 350 14,679
ITT Industries, Inc. 160 13,512
Cummins, Inc. 80 6,703
Pall Corp. 210 6,079
Navistar International Corp.* 120 5,278
---------------
TOTAL MACHINERY 293,142
---------------
AIR FREIGHT & COURIERS 0.8%
United Parcel Service, Inc. --
Class B+ 1,924 164,425
FedEx Corp.+ 510 50,230
Ryder System, Inc. 110 5,255
---------------
TOTAL AIR FREIGHT & COURIERS 219,910
---------------
COMMERCIAL SERVICES & SUPPLIES 0.7%
Cendant Corp. 1,800 42,084
Waste Management, Inc. 980 29,341
Apollo Group, Inc. -- Class A* 320 25,827
Pitney Bowes, Inc. 390 18,049
H&R Block, Inc. 280 13,720
RR Donnelley & Sons Co. 380 13,410
Cintas Corp. 290 12,720
Avery Dennison Corp. 190 11,395
Robert Half International, Inc. 300 8,829
Monster Worldwide, Inc.* 200 6,728
Equifax, Inc. 230 6,463
Allied Waste Industries, Inc.* 540 5,011
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 193,577
---------------
ROAD & RAIL 0.3%
Burlington Northern Santa Fe Corp. 640 30,278
Union Pacific Corp. 440 29,590
Norfolk Southern Corp. 680 24,609
CSX Corp. 370 14,830
---------------
TOTAL ROAD & RAIL 99,307
---------------
ELECTRICAL EQUIPMENT 0.3%
Emerson Electric Co. 720 50,472
Rockwell Automation, Inc. 320 15,856
Cooper Industries Ltd. -- Class A 160 10,862
American Power Conversion Corp.+ 330 7,062
Power-One, Inc.* 140 1,249
---------------
TOTAL ELECTRICAL EQUIPMENT 85,501
---------------
BUILDING PRODUCTS 0.2%
Masco Corp.+ 770 28,128
American Standard Cos., Inc.* 370 15,289
---------------
TOTAL BUILDING PRODUCTS 43,417
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 63
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIRLINES 0.1%
Southwest Airlines Co. 1,330 $ 21,652
Delta Air Lines, Inc.*+ 220 1,646
---------------
TOTAL AIRLINES 23,298
---------------
TRADING COMPANIES & DISTRIBUTORS 0.0%
W.W. Grainger, Inc. 150 9,993
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 9,993
---------------
CONSTRUCTION & ENGINEERING 0.0%
Fluor Corp. 140 7,631
---------------
TOTAL CONSTRUCTION & ENGINEERING 7,631
---------------
TOTAL INDUSTRIALS 2,277,550
---------------
CONSUMER STAPLES 7.0%
FOOD & DRUG RETAILING 2.1%
Wal-Mart Stores, Inc. 7,240 382,417
Walgreen Co. 1,750 67,147
Sysco Corp. 1,090 41,605
Costco Wholesale Corp.+ 800 38,728
CVS Corp. 680 30,648
Kroger Co.*+ 1,260 22,100
Safeway, Inc.* 770 15,200
Albertson's, Inc.+ 630 15,044
Supervalu, Inc. 230 7,940
---------------
TOTAL FOOD & DRUG RETAILING 620,829
---------------
BEVERAGES 1.5%
Coca-Cola Co. 4,140 172,348
PepsiCo, Inc. 2,880 150,336
Anheuser-Busch Cos., Inc. 1,350 68,486
Coca-Cola Enterprises, Inc. 800 16,680
Pepsi Bottling Group, Inc. 430 11,627
Brown-Forman Corp. -- Class B 210 10,223
Adolph Coors Co. -- Class B 60 4,540
---------------
TOTAL BEVERAGES 434,240
---------------
HOUSEHOLD PRODUCTS 1.2%
Procter & Gamble Co. 4,340 239,047
Kimberly-Clark Corp. 830 54,622
Colgate-Palmolive Co. 910 46,556
Clorox Co. 260 15,322
---------------
TOTAL HOUSEHOLD PRODUCTS 355,547
---------------
FOOD PRODUCTS 0.9%
Sara Lee Corp. 1,340 32,348
Kellogg Co. 710 31,709
General Mills, Inc. 620 30,820
WM Wrigley Jr Co. 380 26,292
ConAgra Foods, Inc. 880 25,916
Archer-Daniels-Midland Co. 1,120 24,987
H.J. Heinz Co. 600 23,394
Hershey Foods Corp. 420 23,327
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Campbell Soup Co.+ 700 $ 20,923
McCormick & Co., Inc. 230 8,878
---------------
TOTAL FOOD PRODUCTS 248,594
---------------
TOBACCO 0.9%
Altria Group, Inc.+ 3,509 214,400
Reynolds American, Inc. 250 19,650
UST, Inc. 280 13,471
---------------
TOTAL TOBACCO 247,521
---------------
PERSONAL PRODUCTS 0.4%
Gillette Co. 1,700 76,126
Avon Products, Inc.+ 810 31,347
Alberto-Culver Co. -- Class B 160 7,771
---------------
TOTAL PERSONAL PRODUCTS 115,244
---------------
TOTAL CONSUMER STAPLES 2,021,975
---------------
ENERGY 4.8%
OIL & GAS 4.1%
Exxon Mobil Corp. 11,030 565,398
ChevronTexaco Corp.+ 3,620 190,086
ConocoPhillips 1,184 102,807
Occidental Petroleum Corp. 680 39,685
Devon Energy Corp. 830 32,304
Burlington Resources, Inc. 670 29,145
Apache Corp. 560 28,319
Anadarko Petroleum Corp. 420 27,220
Marathon Oil Corp. 590 22,190
Valero Energy Corp. 440 19,976
Unocal Corp. 450 19,458
XTO Energy, Inc. 450 15,921
Williams Cos., Inc. 950 15,475
Kinder Morgan, Inc. 210 15,357
Kerr-McGee Corp. 260 15,025
EOG Resources, Inc.+ 200 14,272
Amerada Hess Corp. 160 13,181
El Paso Corp.+ 1,100 11,440
Sunoco, Inc. 130 10,622
Ashland, Inc. 120 7,006
---------------
TOTAL OIL & GAS 1,194,887
---------------
ENERGY EQUIPMENT & SERVICES 0.7%
Schlumberger Ltd. 1,010 67,620
Halliburton Co. 760 29,822
Baker Hughes, Inc. 570 24,322
Transocean, Inc.*+ 550 23,315
Nabors Industries Ltd.* 260 13,335
BJ Services Co. 280 13,031
Noble Corp.* 230 11,440
Rowan Cos., Inc.* 180 4,662
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 187,547
---------------
TOTAL ENERGY 1,382,434
---------------
See Notes to Financial Statements.
64 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 2.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 2.0%
Verizon Communications, Inc. 4,740 $ 192,017
SBC Communications, Inc. 5,675 146,245
BellSouth Corp. 3,130 86,983
Sprint Corp. 2,520 62,622
Alltel Corp. 520 30,555
AT&T Corp.+ 1,360 25,922
Qwest Communications International,
Inc.* 3,110 13,808
CenturyTel, Inc. 230 8,158
Citizens Communications Co. 570 7,860
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 574,170
---------------
WIRELESS TELECOMMUNICATION SERVICES 0.2%
Nextel Communications, Inc. --
Class A* 1,900 57,000
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 57,000
---------------
TOTAL TELECOMMUNICATION SERVICES 631,170
---------------
MATERIALS 2.0%
CHEMICALS 1.1%
EI Du Pont de Nemours & Co. 1,700 83,385
Dow Chemical Co. 1,610 79,711
Monsanto Co. 450 24,998
Praxair, Inc. 560 24,724
Air Products & Chemicals, Inc. 390 22,608
PPG Industries, Inc. 290 19,767
Rohm & Haas Co. 380 16,807
Ecolab, Inc.+ 440 15,457
Eastman Chemical Co. 130 7,505
Sigma-Aldrich Corp. 120 7,255
International Flavors & Fragrances,
Inc. 160 6,854
Engelhard Corp. 210 6,441
Hercules, Inc.*+ 190 2,822
Great Lakes Chemical Corp. 90 2,564
---------------
TOTAL CHEMICALS 320,898
---------------
METALS & MINING 0.5%
Alcoa, Inc. 1,490 46,816
Newmont Mining Corp. 760 33,752
Phelps Dodge Corp. 160 15,827
Nucor Corp. 270 14,132
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 310 11,851
United States Steel Corp. 190 9,737
Allegheny Technologies, Inc.+ 160 3,467
---------------
TOTAL METALS & MINING 135,582
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS 0.3%
International Paper Co. 830 $ 34,860
Weyerhaeuser Co. 410 27,560
Georgia-Pacific Corp. 440 16,491
MeadWestvaco Corp. 350 11,861
Louisiana-Pacific Corp. 190 5,081
---------------
TOTAL PAPER & FOREST PRODUCTS 95,853
---------------
CONTAINERS & PACKAGING 0.1%
Ball Corp. 190 8,356
Sealed Air Corp.* 140 7,458
Temple-Inland, Inc. 100 6,840
Pactiv Corp.* 250 6,323
Bemis Co. 180 5,236
---------------
TOTAL CONTAINERS & PACKAGING 34,213
---------------
CONSTRUCTION MATERIALS 0.0%
Vulcan Materials Co. 180 9,830
---------------
TOTAL CONSTRUCTION MATERIALS 9,830
---------------
TOTAL MATERIALS 596,376
---------------
UTILITIES 1.9%
ELECTRIC UTILITIES 1.3%
Exelon Corp.+ 1,130 49,799
Southern Co. 1,270 42,570
TXU Corp. 410 26,470
Entergy Corp. 380 25,684
FPL Group, Inc. 320 23,920
American Electric Power Co., Inc. 680 23,351
PG&E Corp.* 690 22,963
FirstEnergy Corp. 560 22,126
Progress Energy, Inc. 420 19,001
Consolidated Edison, Inc. 410 17,937
Edison International 560 17,937
PPL Corp. 320 17,050
Ameren Corp. 330 16,546
DTE Energy Co. 300 12,939
Cinergy Corp. 310 12,905
Xcel Energy, Inc.+ 680 12,376
Pinnacle West Capital Corp. 160 7,106
CenterPoint Energy, Inc. 530 5,989
TECO Energy, Inc. 340 5,216
Allegheny Energy, Inc.*+ 230 4,533
---------------
TOTAL ELECTRIC UTILITIES 386,418
---------------
MULTI-UTILITIES 0.5%
Duke Energy Corp. 1,640 41,541
Dominion Resources, Inc./VA+ 570 38,612
Public Service Enterprise Group, Inc. 410 21,226
AES Corp.* 1,110 15,174
Sempra Energy 400 14,672
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 65
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Constellation Energy Group, Inc. 300 $ 13,113
Calpine Corp.*+ 910 3,585
CMS Energy Corp.* 330 3,448
Dynegy, Inc. -- Class A* 650 3,003
---------------
TOTAL MULTI-UTILITIES 154,374
---------------
GAS UTILITIES 0.1%
KeySpan Corp.+ 270 10,652
NiSource, Inc. 460 10,479
Nicor, Inc. 80 2,955
Peoples Energy Corp. 60 2,637
---------------
TOTAL GAS UTILITIES 26,723
---------------
TOTAL UTILITIES 567,515
---------------
TOTAL COMMON STOCKS
(Cost $17,492,026) 19,305,210
---------------
CONTRACTS
--------------
OPTIONS PURCHASED 0.0%
Put Options on:
February 2005 S&P 500 Index Futures
Contracts
Expiring February 2005 with
strike price of 700 40 --
---------------
TOTAL OPTIONS PURCHASED
(Cost $660) --
---------------
FACE
AMOUNT
--------------
REPURCHASE AGREEMENTS 36.2%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 2,612,524 2,612,524
1.48% due 01/03/05 5,299,410 5,299,410
1.25% due 01/03/05 2,594,117 2,594,117
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $10,506,051) 10,506,051
---------------
SECURITIES LENDING COLLATERAL 2.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 600,365 600,365
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $600,365) 600,365
---------------
TOTAL INVESTMENTS 104.7%
(Cost $28,599,102) $ 30,411,626
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.7)% $ (1,358,972)
===============
NET ASSETS - 100.0% $ 29,052,654
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $38,832,000) 640 $ 513,080
===============
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
66 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 74.3%
INFORMATION TECHNOLOGY 42.7%
SOFTWARE 13.3%
Microsoft Corp. 119,031 $ 3,179,318
Oracle Corp.* 68,070 933,920
Electronic Arts, Inc.*+ 9,802 604,587
Symantec Corp.*+ 23,406 602,939
Adobe Systems, Inc. 7,439 466,723
Veritas Software Corp.* 13,734 392,106
Intuit, Inc.*+ 7,500 330,075
Autodesk, Inc. 7,670 291,076
Check Point Software Technologies
Ltd.*+ 8,100 199,503
Siebel Systems, Inc.* 18,947 198,943
Citrix Systems, Inc.*+ 6,410 157,237
Mercury Interactive Corp.*+ 2,860 130,273
BEA Systems, Inc.* 11,930 105,700
Synopsys, Inc.* 4,330 84,955
---------------
TOTAL SOFTWARE 7,677,355
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 9.7%
Intel Corp. 70,480 1,648,527
Maxim Integrated Products, Inc. 14,514 615,248
Linear Technology Corp. 13,060 506,206
Applied Materials, Inc.* 27,962 478,150
Xilinx, Inc.+ 14,710 436,151
KLA-Tencor Corp.* 7,540 351,213
Altera Corp.* 16,670 345,069
Marvell Technology Group Ltd.*+ 8,200 290,854
Broadcom Corp. -- Class A*+ 7,852 253,462
ATI Technologies, Inc.* 7,799 151,223
Microchip Technology, Inc. 5,460 145,564
Lam Research Corp.*+ 4,480 129,517
Novellus Systems, Inc.* 4,540 126,621
Intersil Corp. -- Class A 4,840 81,022
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 5,558,827
---------------
COMMUNICATIONS EQUIPMENT 9.5%
Qualcomm, Inc. 62,935 2,668,444
Cisco Systems, Inc.*+ 74,880 1,445,184
Research In Motion Ltd.*+ 5,979 492,789
Juniper Networks, Inc.*+ 11,248 305,833
Telefonaktiebolaget LM
Ericsson - SP ADR* 5,540 174,455
JDS Uniphase Corp.*+ 52,200 165,474
Comverse Technology, Inc.* 6,526 159,561
Tellabs, Inc.*+ 7,570 65,026
---------------
TOTAL COMMUNICATIONS EQUIPMENT 5,476,766
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 5.7%
Dell, Inc.* 29,090 $ 1,225,852
Apple Computer, Inc.* 17,854 1,149,798
Network Appliance, Inc.*+ 11,945 396,813
Sun Microsystems, Inc.* 46,568 250,536
Sandisk Corp.* 4,760 118,857
QLogic Corp.*+ 3,000 110,190
---------------
TOTAL COMPUTERS & PERIPHERALS 3,252,046
---------------
INTERNET SOFTWARE & SERVICES 1.8%
Yahoo!, Inc.*+ 21,040 792,787
VeriSign, Inc.*+ 7,649 256,395
---------------
TOTAL INTERNET SOFTWARE & SERVICES 1,049,182
---------------
IT CONSULTING & SERVICES 1.5%
Paychex, Inc. 11,420 389,193
Fiserv, Inc.*+ 7,790 313,080
Cognizant Technology Solutions
Corp.* 4,120 174,400
---------------
TOTAL IT CONSULTING & SERVICES 876,673
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.2%
Flextronics International Ltd.*+ 19,320 267,002
CDW Corp.+ 2,750 182,463
Sanmina-SCI Corp.* 17,710 150,004
Molex, Inc. 3,140 94,200
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 693,669
---------------
TOTAL INFORMATION TECHNOLOGY 24,584,518
---------------
CONSUMER DISCRETIONARY 14.7%
INTERNET & CATALOG RETAIL 4.9%
eBay, Inc.*+ 15,737 1,829,898
InterActiveCorp*+ 22,820 630,289
Amazon.com, Inc.*+ 8,625 382,001
---------------
TOTAL INTERNET & CATALOG RETAIL 2,842,188
---------------
MEDIA 4.5%
Comcast Corp. -- Class A* 30,290 1,008,051
Sirius Satellite Radio, Inc.*+ 43,540 333,081
Liberty Media International, Inc. --
Class A* 5,630 260,275
XM Satellite Radio Holdings, Inc.* 6,720 252,806
EchoStar Communications Corp.+ 7,100 236,004
NTL, Inc.* 3,040 221,798
Pixar*+ 1,850 158,379
Lamar Advertising Co.*+ 2,710 115,934
---------------
TOTAL MEDIA 2,586,328
---------------
HOTELS RESTAURANTS & LEISURE 2.3%
Starbucks Corp.*+ 17,590 1,096,912
Wynn Resorts Ltd.*+ 3,400 227,528
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,324,440
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 67
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SPECIALTY RETAIL 2.0%
Bed Bath & Beyond, Inc.*+ 12,880 $ 513,011
Staples, Inc. 10,648 358,944
Petsmart, Inc.+ 4,600 163,438
Ross Stores, Inc.+ 4,620 133,379
---------------
TOTAL SPECIALTY RETAIL 1,168,772
---------------
MULTILINE RETAIL 0.7%
Kmart Holding Corp.*+ 2,966 293,486
Dollar Tree Stores, Inc.*+ 3,460 99,233
---------------
TOTAL MULTILINE RETAIL 392,719
---------------
HOUSEHOLD DURABLES 0.3%
Garmin Ltd.+ 3,190 194,080
---------------
TOTAL HOUSEHOLD DURABLES 194,080
---------------
TOTAL CONSUMER DISCRETIONARY 8,508,527
---------------
HEALTH CARE 9.1%
BIOTECHNOLOGY 6.5%
Amgen, Inc.*+ 18,840 1,208,586
Biogen Idec, Inc.*+ 11,540 768,679
Genzyme Corp.* 9,165 532,212
Gilead Sciences, Inc.* 13,572 474,884
Chiron Corp.* 8,320 277,306
Medimmune, Inc.*+ 8,470 229,622
Millennium Pharmaceuticals, Inc.* 10,680 129,442
Invitrogen Corp.*+ 1,527 102,507
---------------
TOTAL BIOTECHNOLOGY 3,723,238
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.0%
Biomet, Inc. 10,850 470,781
DENTSPLY International, Inc. 2,470 138,814
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 609,595
---------------
HEALTH CARE PROVIDERS & SERVICES 0.8%
Patterson Cos., Inc.*+ 4,190 181,804
Express Scripts, Inc.*+ 2,160 165,111
Lincare Holdings, Inc.*+ 3,080 131,362
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 478,277
---------------
PHARMACEUTICALS 0.8%
Teva Pharmaceutical Industries
Ltd. - SP ADR+ 14,640 437,150
---------------
TOTAL PHARMACEUTICALS 437,150
---------------
TOTAL HEALTH CARE 5,248,260
---------------
INDUSTRIALS 3.5%
COMMERCIAL SERVICES & SUPPLIES 1.6%
Apollo Group, Inc. -- Class A*+ 5,960 481,031
Cintas Corp.+ 6,560 287,722
Career Education Corp.*+ 3,316 132,640
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 901,393
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MACHINERY 0.9%
Paccar, Inc. 6,200 $ 498,976
---------------
TOTAL MACHINERY 498,976
---------------
AIR FREIGHT & COURIERS 0.6%
Expeditors International Washington, Inc.+ 3,329 186,024
C.H. Robinson Worldwide, Inc.+ 2,680 148,794
---------------
TOTAL AIR FREIGHT & COURIERS 334,818
---------------
TRADING COMPANIES & DISTRIBUTORS 0.2%
Fastenal Co.+ 2,310 142,204
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 142,204
---------------
ELECTRICAL EQUIPMENT 0.2%
American Power Conversion Corp.+ 6,116 130,882
---------------
TOTAL ELECTRICAL EQUIPMENT 130,882
---------------
TOTAL INDUSTRIALS 2,008,273
---------------
TELECOMMUNICATION SERVICES 2.8%
WIRELESS TELECOMMUNICATION SERVICES 2.3%
Nextel Communications, Inc. --
Class A*+ 44,339 1,330,170
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 1,330,170
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.5%
MCI, Inc. 11,020 222,163
Level 3 Communications, Inc.*+ 21,550 73,055
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 295,218
---------------
TOTAL TELECOMMUNICATION SERVICES 1,625,388
---------------
CONSUMER STAPLES 1.0%
FOOD & DRUG RETAILING 1.0%
Costco Wholesale Corp.+ 7,862 380,600
Whole Foods Market, Inc.+ 1,952 186,123
---------------
TOTAL FOOD & DRUG RETAILING 566,723
---------------
TOTAL CONSUMER STAPLES 566,723
---------------
MATERIALS 0.5%
CONTAINERS & PACKAGING 0.3%
Smurfit-Stone Container Corp.* 7,929 148,114
---------------
TOTAL CONTAINERS & PACKAGING 148,114
---------------
CHEMICALS 0.2%
Sigma-Aldrich Corp. 2,110 127,570
---------------
TOTAL CHEMICALS 127,570
---------------
TOTAL MATERIALS 275,684
---------------
TOTAL COMMON STOCKS
(Cost $38,270,401) 42,817,373
---------------
See Notes to Financial Statements.
68 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 25.0%
Repurchase Agreement (Note 5)
1.55% due 01/03/05++ $ 7,599,073 $ 7,599,073
1.48% due 01/03/05 4,572,615 4,572,615
1.25% due 01/03/05 2,238,343 2,238,343
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $14,410,031) 14,410,031
---------------
SECURITIES LENDING COLLATERAL 11.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 6,533,954 6,533,954
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,533,954) 6,533,954
---------------
TOTAL INVESTMENTS 110.7%
(Cost $59,214,386) $ 63,761,358
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (10.7)% $ (6,162,556)
===============
NET ASSETS - 100.0% $ 57,598,802
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $18,586,050) 571 $ 42,325
===============
UNITS
--------------
EQUITY INDEX SWAP AGREEMENT
March 2005 Nasdaq 100 Index Swap,
Maturing 03/14/05**
(Notional Market Value $53,708,939) 33,131 $ 224,574
---------------
* NON-INCOME PRODUCING SECURITIES.
** PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 69
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 77.8%
FINANCIALS 14.8%
BANKS 3.6%
Banknorth Group, Inc. 8,740 $ 319,884
Mercantile Bankshares Corp. 5,180 270,396
Commerce Bancorp, Inc./NJ+ 4,170 268,548
Greater Bay Bancorp+ 7,030 195,996
Hibernia Corp. -- Class A 5,370 158,469
Colonial BancGroup, Inc. 770 16,347
---------------
TOTAL BANKS 1,229,640
---------------
INSURANCE 3.6%
W.R. Berkley Corp. 5,790 273,114
Allmerica Financial Corp.* 6,530 214,380
Horace Mann Educators Corp. 9,890 188,701
American Financial Group, Inc./OH+ 5,190 162,499
Brown & Brown, Inc. 3,510 152,861
Fidelity National Financial, Inc. 2,260 103,214
Unitrin, Inc. 1,320 59,994
Arthur J. Gallagher & Co.+ 1,700 55,250
HCC Insurance Holdings, Inc.+ 100 3,312
---------------
TOTAL INSURANCE 1,213,325
---------------
THRIFTS & MORTGAGE FINANCE 2.4%
New York Community Bancorp, Inc.+ 14,990 308,344
Independence Community Bank
Corp.+ 6,010 255,906
Astoria Financial Corp. 5,950 237,822
Radian Group, Inc. 350 18,634
Webster Financial Corp. 180 9,115
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 829,821
---------------
REAL ESTATE 2.2%
Hospitality Properties Trust 4,340 199,640
Rayonier, Inc. 3,680 179,989
Liberty Property Trust 3,190 137,808
Developers Diversified Realty Corp.+ 2,600 115,362
Weingarten Realty Investors 1,990 79,799
Mack-Cali Realty Corp. 900 41,427
Highwoods Properties, Inc. 470 13,019
---------------
TOTAL REAL ESTATE 767,044
---------------
CAPITAL MARKETS 2.1%
Legg Mason, Inc.+ 4,900 358,974
Waddell & Reed Financial, Inc. --
Class A 9,370 223,849
Eaton Vance Corp. 2,200 114,730
Investors Financial Services Corp. 210 10,496
---------------
TOTAL CAPITAL MARKETS 708,049
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER FINANCE 0.9%
AmeriCredit Corp.* 11,770 $ 287,777
MoneyGram International, Inc. 1,360 28,750
---------------
TOTAL CONSUMER FINANCE 316,527
---------------
TOTAL FINANCIALS 5,064,406
---------------
CONSUMER DISCRETIONARY 14.6%
SPECIALTY RETAIL 4.5%
Chico's FAS, Inc.*+ 5,660 257,700
O'Reilly Automotive, Inc.* 4,390 197,769
Payless Shoesource, Inc.* 15,480 190,404
Foot Locker, Inc. 6,550 176,392
Regis Corp. 3,420 157,833
AnnTaylor Stores Corp.*+ 7,260 156,308
American Eagle Outfitters, Inc.+ 3,090 145,539
Urban Outfitters, Inc.* 3,270 145,188
Advance Auto Parts, Inc.* 1,800 78,624
Aeropostale, Inc.* 980 28,841
Williams-Sonoma, Inc.* 540 18,922
---------------
TOTAL SPECIALTY RETAIL 1,553,520
---------------
HOUSEHOLD DURABLES 3.7%
Toll Brothers, Inc.*+ 4,650 319,036
Harman International Industries, Inc. 2,230 283,210
Mohawk Industries, Inc.*+ 2,490 227,212
American Greetings Corp. -- Class A 7,840 198,744
Furniture Brands International, Inc.+ 3,650 91,433
D.R. Horton, Inc.+ 1,790 72,155
Lennar Corp. -- Class A+ 1,120 63,482
---------------
TOTAL HOUSEHOLD DURABLES 1,255,272
---------------
HOTELS RESTAURANTS & LEISURE 2.2%
Mandalay Resort Group 3,270 230,306
Ruby Tuesday, Inc.+ 6,070 158,306
GTECH Holdings Corp. 5,160 133,902
Caesars Entertainment, Inc.* 5,660 113,992
Boyd Gaming Corp. 940 39,151
Cheesecake Factory, Inc.*+ 1,155 37,503
Applebee's International, Inc. 1,310 34,649
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 747,809
---------------
MEDIA 2.2%
Washington Post Co. -- Class B 380 373,548
Media General, Inc. 2,670 173,043
Harte-Hanks, Inc. 3,590 93,268
Emmis Communications Corp. --
Class A* 4,570 87,698
Entercom Communications Corp.* 360 12,920
---------------
TOTAL MEDIA 740,477
---------------
AUTO COMPONENTS 1.1%
Bandag, Inc. 3,280 163,377
See Notes to Financial Statements.
70 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BorgWarner, Inc.+ 2,750 $ 148,968
Gentex Corp.+ 1,360 50,347
---------------
TOTAL AUTO COMPONENTS 362,692
---------------
MULTILINE RETAIL 0.8%
Neiman-Marcus Group,
Inc. -- Class A+ 3,760 268,990
---------------
TOTAL MULTILINE RETAIL 268,990
---------------
AUTOMOBILES 0.1%
Thor Industries, Inc. 1,210 44,831
---------------
TOTAL AUTOMOBILES 44,831
---------------
TOTAL CONSUMER DISCRETIONARY 4,973,591
---------------
INFORMATION TECHNOLOGY 11.5%
SOFTWARE 3.6%
Activision, Inc.* 13,630 275,053
McAfee, Inc.*+ 8,570 247,930
Jack Henry & Associates, Inc.+ 10,950 218,014
Wind River Systems, Inc.* 14,130 191,461
Transaction Systems Architects,
Inc. -- Class A* 6,700 132,995
Synopsys, Inc.* 5,940 116,543
Cadence Design Systems, Inc.*+ 3,360 46,402
Ascential Software Corp.* 850 13,864
---------------
TOTAL SOFTWARE 1,242,262
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.6%
Lam Research Corp.*+ 9,320 269,441
Semtech Corp.* 7,730 169,055
Micrel, Inc.*+ 13,490 148,660
Cree, Inc.*+ 3,530 141,482
Fairchild Semiconductor International,
Inc.* 7,900 128,454
Cypress Semiconductor Corp.*+ 2,170 25,454
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 882,546
---------------
COMPUTERS & PERIPHERALS 1.6%
Sandisk Corp.*+ 11,080 276,668
Storage Technology Corp.*+ 8,100 256,041
---------------
TOTAL COMPUTERS & PERIPHERALS 532,709
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.2%
Tech Data Corp.*+ 4,490 203,846
Vishay Intertechnology, Inc.* 10,090 151,552
National Instruments Corp.+ 2,430 66,218
Amphenol Corp. -- Class A* 210 7,715
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 429,331
---------------
COMMUNICATIONS EQUIPMENT 1.2%
Polycom, Inc.* 6,280 146,450
CommScope, Inc.*+ 6,800 128,520
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Plantronics, Inc. 2,550 $ 105,748
ADTRAN, Inc. 1,340 25,648
---------------
TOTAL COMMUNICATIONS EQUIPMENT 406,366
---------------
IT CONSULTING & SERVICES 1.0%
Keane, Inc.* 12,520 184,044
Acxiom Corp. 5,790 152,277
---------------
TOTAL IT CONSULTING & SERVICES 336,321
---------------
OFFICE ELECTRONICS 0.3%
Zebra Technologies Corp. --
Class A* 1,690 95,113
---------------
TOTAL OFFICE ELECTRONICS 95,113
---------------
TOTAL INFORMATION TECHNOLOGY 3,924,648
---------------
INDUSTRIALS 10.0%
COMMERCIAL SERVICES & SUPPLIES 3.7%
ChoicePoint, Inc.* 5,940 273,181
Stericycle, Inc.* 5,030 231,128
Education Management Corp.* 5,320 175,613
Career Education Corp.*+ 3,860 154,400
Copart, Inc.* 5,130 135,022
Kelly Services, Inc. 3,150 95,067
Republic Services, Inc. 2,500 83,850
Dun & Bradstreet Corp.* 1,110 66,212
Deluxe Corp. 1,310 48,902
Corinthian Colleges, Inc.*+ 980 18,468
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,281,843
---------------
MACHINERY 2.0%
Pentair, Inc. 5,850 254,826
Kennametal, Inc. 4,130 205,550
Harsco Corp.+ 2,590 144,366
Crane Co. 1,490 42,972
AGCO Corp.*+ 1,840 40,278
---------------
TOTAL MACHINERY 687,992
---------------
ROAD & RAIL 1.1%
J.B. Hunt Transport Services, Inc. 4,330 194,201
Swift Transportation Co., Inc.*+ 8,380 180,002
---------------
TOTAL ROAD & RAIL 374,203
---------------
AEROSPACE & DEFENSE 0.7%
Precision Castparts Corp. 3,710 243,673
---------------
TOTAL AEROSPACE & DEFENSE 243,673
---------------
AIR FREIGHT & COURIERS 0.6%
Expeditors International Washington, Inc.+ 3,290 183,845
CNF, Inc. 340 17,034
---------------
TOTAL AIR FREIGHT & COURIERS 200,879
---------------
INDUSTRIAL CONGLOMERATES 0.6%
Teleflex, Inc. 3,690 191,658
---------------
TOTAL INDUSTRIAL CONGLOMERATES 191,658
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 71
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 0.5%
Thomas & Betts Corp.* 5,750 $ 176,812
---------------
TOTAL ELECTRICAL EQUIPMENT 176,812
---------------
CONSTRUCTION & ENGINEERING 0.5%
Dycom Industries, Inc.*+ 5,490 167,555
---------------
TOTAL CONSTRUCTION & ENGINEERING 167,555
---------------
AIRLINES 0.3%
Alaska Air Group, Inc.*+ 3,100 103,819
---------------
TOTAL AIRLINES 103,819
---------------
TOTAL INDUSTRIALS 3,428,434
---------------
HEALTH CARE 8.4%
HEALTH CARE PROVIDERS & SERVICES 4.3%
Lincare Holdings, Inc.*+ 6,850 292,152
Triad Hospitals, Inc.*+ 6,520 242,609
Patterson Cos., Inc.*+ 4,910 213,045
Universal Health Services, Inc. --
Class B 4,310 191,795
Apria Healthcare Group, Inc.* 5,750 189,462
Community Health Systems, Inc.* 4,550 126,854
Renal Care Group, Inc.* 1,890 68,021
Henry Schein, Inc.*+ 940 65,462
Covance, Inc.* 1,320 51,150
First Health Group Corp.* 1,860 34,801
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,475,351
---------------
BIOTECHNOLOGY 1.8%
Invitrogen Corp.*+ 3,940 264,492
Charles River Laboratories International,
Inc.*+ 5,020 230,970
Millennium Pharmaceuticals, Inc.* 9,120 110,535
---------------
TOTAL BIOTECHNOLOGY 605,997
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.4%
DENTSPLY International, Inc. 4,260 239,412
Hillenbrand Industries, Inc. 2,110 117,190
Varian, Inc.* 1,220 50,032
Cytyc Corp.* 1,440 39,701
Varian Medical Systems, Inc.*+ 380 16,431
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 462,766
---------------
PHARMACEUTICALS 0.9%
Barr Pharmaceuticals, Inc.*+ 6,810 310,127
---------------
TOTAL PHARMACEUTICALS 310,127
---------------
TOTAL HEALTH CARE 2,854,241
---------------
UTILITIES 5.3%
ELECTRIC UTILITIES 2.7%
Pepco Holdings, Inc.+ 12,230 260,744
IDACORP, Inc. 6,590 201,456
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
OGE Energy Corp.+ 6,960 $ 184,510
Duquesne Light Holdings, Inc.+ 8,480 159,848
NSTAR 2,230 121,044
---------------
TOTAL ELECTRIC UTILITIES 927,602
---------------
MULTI-UTILITIES 2.6%
Oneok, Inc. 8,770 249,244
Energy East Corp. 9,130 243,588
MDU Resources Group, Inc. 9,100 242,788
Sierra Pacific Resources*+ 14,350 150,675
---------------
TOTAL MULTI-UTILITIES 886,295
---------------
TOTAL UTILITIES 1,813,897
---------------
ENERGY 5.1%
OIL & GAS 3.4%
Murphy Oil Corp. 3,950 317,777
Pogo Producing Co. 5,130 248,754
Forest Oil Corp.*+ 6,690 212,207
Noble Energy, Inc.+ 3,360 207,178
Newfield Exploration Co.* 3,310 195,455
---------------
TOTAL OIL & GAS 1,181,371
---------------
ENERGY EQUIPMENT & SERVICES 1.7%
Weatherford International Ltd.*+ 6,470 331,911
Grant Prideco, Inc.* 6,490 130,124
Cooper Cameron Corp.*+ 1,950 104,930
ENSCO International, Inc.+ 90 2,857
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 569,822
---------------
TOTAL ENERGY 1,751,193
---------------
MATERIALS 4.2%
CHEMICALS 2.7%
Lyondell Chemical Co.+ 12,110 350,221
Scotts Co. -- Class A* 3,270 240,410
Lubrizol Corp. 5,910 217,843
Airgas, Inc. 3,670 97,292
---------------
TOTAL CHEMICALS 905,766
---------------
PAPER & FOREST PRODUCTS 1.0%
Potlatch Corp.+ 4,040 204,343
Bowater, Inc.+ 2,860 125,754
---------------
TOTAL PAPER & FOREST PRODUCTS 330,097
---------------
METALS & MINING 0.5%
Peabody Energy Corp. 1,280 103,565
Steel Dynamics, Inc. 1,110 42,047
Worthington Industries, Inc. 2,000 39,160
---------------
TOTAL METALS & MINING 184,772
---------------
TOTAL MATERIALS 1,420,635
---------------
See Notes to Financial Statements.
72 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER STAPLES 3.5%
FOOD PRODUCTS 1.9%
Tyson Foods, Inc. -- Class A 16,140 $ 296,976
Hormel Foods Corp. 7,250 227,287
Lancaster Colony Corp. 2,050 87,884
Dean Foods Co.* 840 27,678
---------------
TOTAL FOOD PRODUCTS 639,825
---------------
FOOD & DRUG RETAILING 0.6%
BJ's Wholesale Club, Inc.*+ 4,300 125,259
Ruddick Corp. 4,170 90,447
---------------
TOTAL FOOD & DRUG RETAILING 215,706
---------------
BEVERAGES 0.6%
PepsiAmericas, Inc. 10,090 214,311
---------------
TOTAL BEVERAGES 214,311
---------------
HOUSEHOLD PRODUCTS 0.4%
Energizer Holdings, Inc.*+ 2,590 128,697
Church & Dwight Co., Inc. 230 7,733
---------------
TOTAL HOUSEHOLD PRODUCTS 136,430
---------------
TOTAL CONSUMER STAPLES 1,206,272
---------------
TELECOMMUNICATION SERVICES 0.4%
WIRELESS TELECOMMUNICATION SERVICES 0.4%
Telephone & Data Systems, Inc.+ 1,740 133,893
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 133,893
---------------
TOTAL TELECOMMUNICATION SERVICES 133,893
---------------
TOTAL COMMON STOCKS
(Cost $24,475,292) 26,571,210
---------------
FACE
AMOUNT
--------------
FFEDERAL AGENCY DISCOUNT NOTES 5.9%
Federal Home Loan Bank**
2.20% due 01/07/05 $ 1,000,000 999,756
Freddie Mac**
2.21% due 01/14/05 1,000,000 999,325
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,999,081) 1,999,081
---------------
REPURCHASE AGREEMENTS 18.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 1,575,642 1,575,642
1.48% due 01/03/05 3,196,132 3,196,132
1.25% due 01/03/05 1,564,540 1,564,540
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,336,314) 6,336,314
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 12.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 4,234,054 $ 4,234,054
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,234,054) 4,234,054
---------------
TOTAL INVESTMENTS 114.6%
(Cost $37,044,741) $ 39,140,659
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.6)% $ (4,979,116)
===============
NET ASSETS - 100.0% $ 34,161,543
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $9,898,070) 149 $ 344,720
===============
UNITS
--------------
EQUITY INDEX SWAP AGREEMENT
February 2005 S&P MidCap 400 Index
Swap, Maturing 02/22/05***
(Notional Market Value $14,723,147) 22,196 $ 754,960
---------------
* NON-INCOME PRODUCING SECURITIES.
** 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.
*** PRICE RETURN BASED ON S&P MidCap 400 Index +/- financing at a variable
rate.
+ All or a portion of this security is on loan at December 31, 2004 - See
Note 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 73
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 45.5%
Fannie Mae*
2.25% due 01/26/05 $ 100,000 $ 99,856
Farmer Mac*
2.24% due 01/06/05 250,000 249,953
Federal Home Loan Bank*
2.22% due 01/06/05 250,000 249,954
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $599,763) 599,763
---------------
REPURCHASE AGREEMENTS 34.7%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 113,951 113,951
1.48% due 01/03/05 231,146 231,146
1.25% due 01/03/05 113,149 113,149
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $458,246) 458,246
---------------
TOTAL INVESTMENTS 80.2%
(Cost $1,058,009) $ 1,058,009
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 19.8% $ 260,838
===============
NET ASSETS - 100.0% $ 1,318,847
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $730,730) 11 $ (25,184)
===============
UNITS
--------------
EQUITY INDEX SWAP AGREEMENT
February 2005 S&P MidCap 400 Index
Swap, Maturing 02/22/05**
(Notional Market Value $617,846) 931 $ (15,129)
---------------
* 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.
** PRICE RETURN BASED ON S&P MidCap 400 Index +/- financing at a variable
rate.
See Notes to Financial Statements.
74 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 58.2%
FINANCIALS 12.8%
BANKS 5.0%
First Bancorp Puerto Rico 5,150 $ 327,076
East-West Bancorp, Inc.+ 7,525 315,749
Silicon Valley Bancshares* 6,105 273,626
Southwest Bancorp of Texas, Inc. 11,600 270,164
Pacific Capital Bancorp 7,800 265,122
BancorpSouth, Inc. 10,867 264,829
Central Pacific Financial Corp. Co. 6,900 249,573
Citizens Banking Corp./MI 7,202 247,389
Cathay General Bancorp 6,528 244,800
Chittenden Corp. 8,320 239,034
Umpqua Holding Corp. 9,263 233,520
TrustCo Bank Corp./NY 16,140 222,571
Alabama National Bancorporation 3,330 214,785
Community Bank System, Inc. 7,544 213,118
Hancock Holding Co. 6,352 212,538
PrivateBancorp, Inc. 6,550 211,107
Hanmi Financial Corp. 5,830 209,530
Oriental Financial Group 7,266 205,686
First Charter Corp. 7,796 204,021
City Holding Co. 5,530 200,407
First Financial Bancorp 11,010 192,675
Irwin Financial Corp. 6,760 191,916
Nara Bancorp, Inc. 8,765 186,432
First Midwest Bancorp, Inc./IL 2,900 105,241
Prosperity Bancshares, Inc. 1,690 49,365
Signature Bank/New York NY* 1,120 36,243
---------------
TOTAL BANKS 5,586,517
---------------
REAL ESTATE 4.1%
First Industrial Realty Trust, Inc. 6,585 268,207
American Home Mortgage Investment
Corp. 7,680 263,040
Prentiss Properties Trust 6,835 261,097
Brandywine Realty Trust 8,170 240,116
Glimcher Realty Trust 8,290 229,716
Corporate Office Properties Trust
SBI/MD 7,795 228,783
LaSalle Hotel Properties 6,980 222,173
Impac Mortgage Holdings, Inc. 9,730 220,579
Redwood Trust, Inc.+ 3,450 214,210
Jones Lang LaSalle, Inc.* 5,685 212,676
CRT Properties, Inc. 8,465 201,975
Mid-America Apartment Communities,
Inc. 4,895 201,772
Parkway Properties, Inc./MD 3,933 199,600
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Sovran Self Storage, Inc. 4,720 $ 198,901
Cousins Properties, Inc. 6,470 195,847
National Health Investors, Inc. 6,613 192,967
Colonial Properties Trust+ 4,840 190,067
MFA Mortgage Investments, Inc. 21,040 185,573
Bedford Property Investors, Inc. 5,780 164,210
LTC Properties, Inc. 7,381 146,956
Capstead Mortgage Corp.+ 13,190 139,023
Essex Property Trust, Inc. 910 76,258
HomeBanc Corp./Atlanta GA 3,390 32,815
Newcastle Investment Corp. 990 31,462
Luminent Mortgage Capital, Inc. 2,430 28,917
Anworth Mortgage Asset Corp. 1,680 17,993
CB Richard Ellis Group, Inc. --
Class A* 120 4,026
MortgageIT Holdings, Inc. 180 3,231
---------------
TOTAL REAL ESTATE 4,572,190
---------------
INSURANCE 1.5%
ProAssurance Corp.*+ 5,840 228,402
RLI Corp. 5,322 221,236
Delphi Financial Group, Inc. --
Class A 4,600 212,290
Triad Guaranty, Inc.* 3,325 201,096
Direct General Corp. 6,170 198,057
State Auto Financial Corp. 6,108 157,892
Universal American Financial Corp.* 9,800 151,606
Selective Insurance Group, Inc. 1,880 83,171
Infinity Property & Casualty Corp. 2,275 80,080
Zenith National Insurance Corp. 910 45,354
American Equity Investment Life
Holding Co.+ 3,245 34,949
UICI 1,020 34,578
Vesta Insurance Group, Inc. 2,199 8,092
---------------
TOTAL INSURANCE 1,656,803
---------------
THRIFTS & MORTGAGE FINANCE 1.4%
MAF Bancorp, Inc. 5,200 233,064
BankAtlantic Bancorp, Inc. -- Class A 10,645 211,836
Corus Bankshares, Inc. 4,324 207,595
Harbor Florida Bancshares, Inc. 5,986 207,175
Commercial Capital Bancorp, Inc. 8,547 198,119
NetBank, Inc. 17,780 185,090
Flagstar Bancorp, Inc. 5,617 126,944
Dime Community Bancshares 5,925 106,117
Franklin Bank Corp./Houston TX* 5,148 93,951
Ocwen Financial Corp.*+ 5,030 48,087
Brookline Bancorp, Inc. 4 65
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,618,043
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 75
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CAPITAL MARKETS 0.5%
National Financial Partners Corp. 6,170 $ 239,396
MCG Capital Corp. 10,705 183,377
Affiliated Managers Group*+ 730 49,450
Gabelli Asset Management, Inc. --
Class A 850 41,242
Cohen & Steers, Inc. 2,115 34,369
---------------
TOTAL CAPITAL MARKETS 547,834
---------------
CONSUMER FINANCE 0.2%
Nelnet, Inc. -- Class A* 7,440 200,359
Collegiate Funding Services LLC* 3,450 48,611
Education Lending Group, Inc.*+ 2,257 35,006
---------------
TOTAL CONSUMER FINANCE 283,976
---------------
DIVERSIFIED FINANCIALS 0.1%
GATX Corp.+ 5,870 173,517
---------------
TOTAL DIVERSIFIED FINANCIALS 173,517
---------------
TOTAL FINANCIALS 14,438,880
---------------
INFORMATION TECHNOLOGY 10.7%
SOFTWARE 2.2%
Micros Systems, Inc.* 3,900 304,434
Parametric Technology Corp.*+ 44,840 264,108
Kronos, Inc./MA* 5,135 262,553
Borland Software Corp.* 22,390 261,515
Macrovision Corp.*+ 9,275 238,553
Ansys, Inc.* 7,336 235,192
Progress Software Corp.* 9,555 223,109
Transaction Systems Architects,
Inc. -- Class A* 10,335 205,150
Epicor Software Corp.* 14,400 202,896
Midway Games, Inc.* 17,240 181,020
MicroStrategy, Inc. -- Class A* 722 43,500
Advent Software, Inc.* 1,875 38,400
---------------
TOTAL SOFTWARE 2,460,430
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.0%
Varian Semiconductor Equipment
Associates, Inc.* 6,780 249,843
ON Semiconductor Corp.*+ 54,985 249,632
Kulicke & Soffa Industries, Inc.* 28,300 243,946
AMIS Holdings, Inc.* 12,639 208,796
MKS Instruments, Inc.* 11,185 207,482
Cymer, Inc.*+ 7,020 207,371
ATMI, Inc.* 8,890 200,292
Micrel, Inc.*+ 17,970 198,029
Axcelis Technologies, Inc.* 22,675 184,348
OmniVision Technologies, Inc.*+ 3,537 64,904
Photronics, Inc.* 3,460 57,090
Sigmatel, Inc.* 1,442 51,234
Brooks Automation, Inc.* 2,765 47,613
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Skyworks Solutions, Inc.* 4,660 $ 43,944
Pixelworks, Inc.* 2,459 27,885
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 2,242,409
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.6%
Taser International, Inc.*+ 10,840 342,436
Coherent, Inc.* 7,692 234,144
Littelfuse, Inc.* 5,588 190,886
CTS Corp. 13,905 184,797
Agilsys, Inc. 10,395 178,170
BEI Technologies, Inc. 5,686 175,584
Methode Electronics, Inc. -- Class A 13,307 170,995
Paxar Corp.* 6,150 136,346
Anixter International, Inc.*+ 3,505 126,145
Trimble Navigation Ltd.* 2,950 97,468
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,836,971
---------------
INTERNET SOFTWARE & SERVICES 1.4%
EarthLink, Inc.*+ 22,300 256,896
Jupitermedia Corp.* 9,800 233,044
Equinix, Inc.* 5,442 232,591
Digitas, Inc.*+ 22,560 215,448
WebEx Communications, Inc.*+ 8,590 204,270
Sohu.com, Inc.*+ 9,130 161,692
aQuantive, Inc.* 17,710 158,328
Travelzoo, Inc.*+ 1,445 137,897
FindWhat.com*+ 1,547 27,428
---------------
TOTAL INTERNET SOFTWARE & SERVICES 1,627,594
---------------
IT CONSULTING & SERVICES 1.3%
CACI International, Inc. -- Class A*+ 4,540 309,310
BISYS Group, Inc.*+ 17,465 287,299
Euronet Worldwide, Inc.* 9,375 243,938
CSG Systems International, Inc.* 12,880 240,856
iPayment Holdings, Inc.* 4,350 215,412
Sapient Corp.* 7,000 55,370
TNS, Inc.* 2,420 52,877
---------------
TOTAL IT CONSULTING & SERVICES 1,405,062
---------------
COMMUNICATIONS EQUIPMENT 1.2%
F5 Networks, Inc.* 6,870 334,706
Extreme Networks, Inc.* 39,290 257,350
CommScope, Inc.* 10,100 190,890
Sycamore Networks, Inc.* 38,585 156,655
Arris Group, Inc.*+ 19,360 136,294
Ditech Communications Corp.* 8,440 126,178
Black Box Corp.+ 2,420 116,208
ViaSat, Inc.* 1,202 29,173
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,347,454
---------------
See Notes to Financial Statements.
76 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 1.0%
Brocade Communications Systems,
Inc.*+ 40,590 $ 310,108
Intergraph Corp.* 7,735 208,304
Electronics for Imaging, Inc.*+ 9,450 164,524
PalmOne, Inc.*+ 4,941 155,889
Komag, Inc.*+ 8,230 154,559
McData Corp. -- Class A* 20,690 123,312
---------------
TOTAL COMPUTERS & PERIPHERALS 1,116,696
---------------
TOTAL INFORMATION TECHNOLOGY 12,036,616
---------------
CONSUMER DISCRETIONARY 8.7%
HOTELS, RESTAURANTS & LEISURE 1.9%
La Quinta Corp.* 30,425 276,563
Rare Hospitality International, Inc.* 7,870 250,738
Sunterra Corp.*+ 16,700 234,468
Landry's Restaurants, Inc. 6,895 200,369
Steak N Shake Co.* 9,130 183,330
Ameristar Casinos, Inc. 4,176 180,027
Six Flags, Inc.* 33,510 179,949
Vail Resorts, Inc.* 5,590 125,328
P.F. Chang's China Bistro, Inc.* 2,180 122,843
Isle of Capri Casinos, Inc.* 3,450 88,493
Bluegreen Corp.* 3,850 76,346
Krispy Kreme Doughnuts, Inc.*+ 4,779 60,215
Navigant International* 4,105 49,958
Red Robin Gourmet Burgers, Inc.* 700 37,429
Life Time Fitness, Inc.* 1,150 29,762
Multimedia Games, Inc.* 1,387 21,859
Marcus Corp. 60 1,508
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 2,119,185
---------------
SPECIALTY RETAIL 1.8%
Charming Shoppes, Inc.* 28,006 262,416
Cato Corp. -- Class A 7,862 226,583
Sonic Automotive, Inc. 9,070 224,936
Group 1 Automotive, Inc.* 6,570 206,955
United Auto Group, Inc. 6,990 206,834
Movie Gallery, Inc.+ 10,160 193,751
West Marine, Inc.* 7,735 191,441
Select Comfort Corp.* 5,020 90,059
Cost Plus, Inc.* 2,720 87,394
Finish Line, Inc. -- Class A+ 4,360 79,788
Bebe Stores, Inc. 2,625 70,822
Sports Authority, Inc.*+ 2,420 62,315
HOT Topic, Inc.* 2,720 46,757
Christopher & Banks Corp. 2,239 41,310
Jos. A. Bank Clothiers, Inc.*+ 1,210 34,243
Guess ?, Inc.* 1,750 21,962
---------------
TOTAL SPECIALTY RETAIL 2,047,566
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MEDIA 1.4%
RH Donnelley Corp.* 4,410 $ 260,410
Cumulus Media, Inc. -- Class A* 13,490 203,429
Entravision Communications
Corp. -- Class A* 22,374 186,823
Lin TV Corp. -- Class A* 9,435 180,208
Insight Communications Co., Inc.* 19,119 177,233
Reader's Digest Association, Inc. 11,780 163,860
Mediacom Communications Corp.* 25,670 160,437
Emmis Communications Corp. --
Class A* 8,050 154,480
Sinclair Broadcast Group, Inc. --
Class A 7,070 65,115
Primedia, Inc.* 7,742 29,420
---------------
TOTAL MEDIA 1,581,415
---------------
HOUSEHOLD DURABLES 1.1%
Yankee Candle Co., Inc.* 8,350 277,053
Ethan Allen Interiors, Inc. 6,360 254,527
WCI Communities, Inc.* 8,530 250,782
Libbey, Inc. 7,257 161,178
Interface, Inc. -- Class A* 12,325 122,880
Champion Enterprises, Inc.* 6,920 81,795
Tempur-Pedic International, Inc.*+ 2,000 42,400
Blount International, Inc.* 2,235 38,934
---------------
TOTAL HOUSEHOLD DURABLES 1,229,549
---------------
AUTO COMPONENTS 0.7%
Goodyear Tire & Rubber Co.*+ 23,290 341,431
Tenneco Automotive, Inc.* 13,730 236,705
Superior Industries International,
Inc.+ 4,360 126,658
Exide Technologies* 6,775 93,360
---------------
TOTAL AUTO COMPONENTS 798,154
---------------
TEXTILES & APPAREL 0.7%
K-Swiss, Inc. -- Class A 8,540 248,685
Brown Shoe Co., Inc. 7,200 214,776
Oxford Industries, Inc. 4,596 189,815
Warnaco Group, Inc.* 4,225 91,260
---------------
TOTAL TEXTILES & APPAREL 744,536
---------------
LEISURE EQUIPMENT & PRODUCTS 0.4%
SCP Pool Corp. 7,980 254,562
K2, Inc.* 12,870 204,376
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 458,938
---------------
AUTOMOBILES 0.2%
Winnebago Industries, Inc. 5,950 232,407
Thor Industries, Inc. 1,110 41,125
---------------
TOTAL AUTOMOBILES 273,532
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 77
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL 0.2%
1-800-FLOWERS.com, Inc.* 19,654 $ 165,290
Priceline.com, Inc.*+ 2,600 61,334
---------------
TOTAL INTERNET & CATALOG RETAIL 226,624
---------------
MULTILINE RETAIL 0.2%
ShopKo Stores, Inc.* 9,425 176,059
---------------
TOTAL MULTILINE RETAIL 176,059
---------------
DISTRIBUTORS 0.1%
Handleman Co. 4,420 94,942
---------------
TOTAL DISTRIBUTORS 94,942
---------------
TOTAL CONSUMER DISCRETIONARY 9,750,500
---------------
INDUSTRIALS 8.3%
COMMERCIAL SERVICES & SUPPLIES 2.3%
Resources Connection, Inc.*+ 5,320 288,929
Ionics, Inc.*+ 6,530 283,010
Brady Corp. -- Class A 3,812 238,517
Mobile Mini, Inc.* 6,782 224,077
Sotheby's Holdings, Inc. -- Class A*+ 12,215 221,824
Bowne & Co., Inc. 13,600 221,136
Kelly Services, Inc. 6,526 196,955
Central Parking Corp. 12,916 195,677
Spherion Corp.* 22,320 187,488
Korn/Ferry International, Inc.* 8,170 169,527
Imagistics International, Inc.* 2,780 93,575
Jackson Hewitt Tax Service, Inc. 3,630 91,658
Rollins, Inc. 1,810 47,639
NCO Group, Inc.* 1,613 41,696
Tetra Tech, Inc.* 2,290 38,335
Casella Waste Systems,
Inc. -- Class A* 2,337 34,214
Waste Connections, Inc.* 140 4,795
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,579,052
---------------
MACHINERY 1.9%
Toro Co.+ 3,570 290,420
Watts Industries, Inc. -- Class A. 7,019 226,293
Wabtec Corp. 10,395 221,621
Thomas Industries, Inc. 5,496 219,400
Wabash National Corp.*+ 7,037 189,506
Mueller Industries, Inc. 5,630 181,286
Terex Corp.* 3,630 172,970
Astec Industries, Inc.* 8,890 152,997
Barnes Group, Inc. 5,745 152,300
Middleby Corp. 2,827 143,386
Tecumseh Products Co. -- Class A 2,340 111,852
Gardner Denver, Inc.* 2,749 99,761
Bucyrus International, Inc. -- Class A 724 29,423
---------------
TOTAL MACHINERY 2,191,215
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ROAD & RAIL 0.9%
Swift Transportation Co., Inc.*+ 11,670 $ 250,672
Kansas City Southern*+ 13,641 241,855
Dollar Thrifty Automotive Group,
Inc.* 7,700 232,540
Old Dominion Freight Line, Inc.* 4,107 142,924
RailAmerica, Inc.* 9,320 121,626
USF Corp. 1,632 61,934
---------------
TOTAL ROAD & RAIL 1,051,551
---------------
AEROSPACE & DEFENSE 0.9%
Moog, Inc. -- Class A* 5,614 254,595
DRS Technologies, Inc.* 5,380 229,780
Aviall, Inc.* 8,465 194,441
Cubic Corp. 7,440 187,265
Curtiss-Wright Corp. 1,090 62,577
EDO Corp. 1,505 47,784
Teledyne Technologies, Inc.* 790 23,249
---------------
TOTAL AEROSPACE & DEFENSE 999,691
---------------
ELECTRICAL EQUIPMENT 0.7%
Thomas & Betts Corp.* 8,860 272,445
II-Vi, Inc.* 4,895 207,989
Franklin Electric Co., Inc. 4,540 191,860
A.O. Smith Corp. 1,600 47,904
Plug Power, Inc.*+ 2,840 17,352
---------------
TOTAL ELECTRICAL EQUIPMENT 737,550
---------------
BUILDING PRODUCTS 0.5%
Trex Co., Inc.*+ 3,985 208,973
Jacuzzi Brands, Inc.* 20,375 177,263
Apogee Enterprises, Inc. 10,590 142,012
---------------
TOTAL BUILDING PRODUCTS 528,248
---------------
CONSTRUCTION & ENGINEERING 0.4%
Washington Group International,
Inc.* 4,980 205,425
Shaw Group, Inc.* 10,147 181,124
Mastec, Inc.* 1,375 13,901
---------------
TOTAL CONSTRUCTION & ENGINEERING 400,450
---------------
AIR FREIGHT & COURIERS 0.2%
Pacer International, Inc.* 8,748 185,982
EGL, Inc.*+ 2,331 69,674
---------------
TOTAL AIR FREIGHT & COURIERS 255,656
---------------
AIRLINES 0.2%
Alaska Air Group, Inc.* 3,925 131,448
ExpressJet Holdings, Inc.* 5,500 70,840
Continental Airlines, Inc. -- Class B* 3,841 52,007
---------------
TOTAL AIRLINES 254,295
---------------
See Notes to Financial Statements.
78 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MARINE 0.1%
Kirby Corp.* 3,145 $ 139,575
---------------
TOTAL MARINE 139,575
---------------
TRADING COMPANIES & DISTRIBUTORS 0.1%
Watsco, Inc. 3,265 114,993
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 114,993
---------------
INDUSTRIAL CONGLOMERATES 0.1%
Tredegar Corp. 4,250 85,893
---------------
TOTAL INDUSTRIAL CONGLOMERATES 85,893
---------------
TOTAL INDUSTRIALS 9,338,169
---------------
HEALTH CARE 7.4%
HEALTH CARE EQUIPMENT & SUPPLIES 2.3%
Intuitive Surgical, Inc.* 8,100 324,162
Sola International, Inc.* 10,040 276,502
Steris Corp.* 11,149 264,454
West Pharmaceutical Services, Inc. 8,826 220,915
Haemonetics Corp./MA*+ 5,805 210,199
Conmed Corp.* 7,380 209,740
Kyphon, Inc.*+ 7,675 197,708
Analogic Corp. 4,230 189,462
Varian, Inc.* 3,850 157,888
Laserscope* 4,080 146,513
Align Technology, Inc.* 12,825 137,869
Mentor Corp. 3,052 102,974
Biosite, Inc.*+ 1,500 92,310
Intermagnetics General Corp.* 2,295 58,316
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,589,012
---------------
HEALTH CARE PROVIDERS & SERVICES 2.1%
Cerner Corp.*+ 5,120 272,230
Chemed Corp. 3,450 231,529
eResearch Technology, Inc.* 14,568 230,903
NDCHealth Corp. 11,460 213,041
IDX Systems Corp.* 5,805 200,040
Magellan Health Services, Inc.* 5,800 198,128
Parexel International Corp.* 9,403 190,881
First Health Group Corp.* 8,540 159,783
Apria Healthcare Group, Inc.* 4,445 146,463
American Healthways, Inc.* 3,945 130,343
Per-Se Technologies, Inc.* 8,050 127,431
Pediatrix Medical Group, Inc.* 1,473 94,346
Advisory Board Co.* 1,145 42,228
Genesis HealthCare Corp.* 990 34,680
Odyssey HealthCare, Inc.* 2,092 28,619
LabOne, Inc.* 370 11,855
AMN Healthcare Services, Inc.* 675 10,739
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,323,239
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BIOTECHNOLOGY 2.0%
Human Genome Sciences, Inc.* 21,890 $ 263,118
Transkaryotic Therapies, Inc.* 10,040 254,915
United Therapeutics Corp.* 5,440 245,616
Alexion Pharmaceuticals, Inc.* 9,740 245,448
Cubist Pharmaceuticals, Inc.* 17,963 212,502
Vertex Pharmaceuticals, Inc.*+ 19,240 203,367
Exelixis, Inc.* 21,380 203,110
NPS Pharmaceuticals, Inc.*+ 9,120 166,714
Medarex, Inc.*+ 15,097 162,746
Vicuron Pharmaceuticals, Inc.* 8,358 145,513
Abgenix, Inc.*+ 12,915 133,541
Serologicals Corp.* 2,120 46,894
Digene Corp.* 805 21,051
MannKind Corp.* 670 10,552
---------------
TOTAL BIOTECHNOLOGY 2,315,087
---------------
PHARMACEUTICALS 1.0%
Bone Care International, Inc.* 7,203 200,603
Perrigo Co. 11,210 193,597
Connetics Corp.*+ 7,620 185,090
Kos Pharmaceuticals, Inc.* 4,870 183,307
Alpharma, Inc. -- Class A 9,916 168,076
First Horizon Pharmaceutical* 7,220 165,266
---------------
TOTAL PHARMACEUTICALS 1,095,939
---------------
TOTAL HEALTH CARE 8,323,277
---------------
MATERIALS 3.7%
CHEMICALS 1.7%
Cytec Industries, Inc. 5,865 301,578
Mosaic Co.*+ 15,610 254,755
Airgas, Inc. 9,605 254,629
Georgia Gulf Corp.+ 5,090 253,482
MacDermid, Inc. 6,705 242,050
PolyOne Corp.* 23,910 216,625
Arch Chemicals, Inc. 6,533 188,020
FMC Corp.* 3,020 145,866
Minerals Technologies, Inc. 650 43,355
Westlake Chemical Corp. 1,070 35,738
---------------
TOTAL CHEMICALS 1,936,098
---------------
METALS & MINING 1.1%
Allegheny Technologies, Inc.+ 14,820 321,149
Cleveland-Cliffs, Inc.+ 2,540 263,804
GrafTech International Ltd.*+ 16,820 159,117
AK Steel Holding Corp.* 10,178 147,276
Oregon Steel Mills, Inc.* 6,437 130,607
Wheeling-Pittsburgh Corp.* 2,840 109,454
Stillwater Mining Co.* 6,220 70,037
Hecla Mining Co.* 7,273 42,402
---------------
TOTAL METALS & MINING 1,243,846
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 79
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONTAINERS & PACKAGING 0.5%
AptarGroup, Inc. 5,490 $ 289,762
Silgan Holdings, Inc. 3,450 210,312
Crown Holdings, Inc.*+ 2,480 34,075
---------------
TOTAL CONTAINERS & PACKAGING 534,149
---------------
PAPER & FOREST PRODUCTS 0.2%
Potlatch Corp.+ 4,990 252,394
---------------
TOTAL PAPER & FOREST PRODUCTS 252,394
---------------
CONSTRUCTION MATERIALS 0.2%
Texas Industries, Inc. 3,190 198,992
---------------
TOTAL CONSTRUCTION MATERIALS 198,992
---------------
TOTAL MATERIALS 4,165,479
---------------
ENERGY 2.7%
OIL & GAS 1.5%
Vintage Petroleum, Inc. 10,525 238,812
Stone Energy Corp.* 4,826 217,604
Frontier Oil Corp. 7,915 211,014
Spinnaker Exploration Co.* 5,865 205,686
Holly Corp. 7,120 198,434
Tesoro Corp.* 5,880 187,337
Plains Exploration & Production Co.* 6,550 170,300
Meridian Resource Corp.* 14,990 90,689
Whiting Petroleum Corp.* 2,300 69,575
Overseas Shipholding Group, Inc.+ 1,070 59,064
Comstock Resources, Inc.* 1,810 39,911
Energy Partners Ltd.* 1,496 30,324
Brigham Exploration Co.* 1,459 13,131
---------------
TOTAL OIL & GAS 1,731,881
---------------
ENERGY EQUIPMENT & SERVICES 1.2%
Maverick Tube Corp.*+ 7,380 223,614
Cal Dive International, Inc.*+ 4,720 192,340
Universal Compression Holdings,
Inc.* 5,440 189,910
Unit Corp.*+ 4,860 185,701
Dril-Quip, Inc.* 6,409 155,482
Atwood Oceanics, Inc.* 2,285 119,049
Newpark Resources, Inc.* 17,535 90,305
Offshore Logistics, Inc.* 1,640 53,251
Veritas DGC, Inc.* 1,987 44,529
Lone Star Technologies, Inc.* 1,150 38,479
Todco -- Class A* 1,770 32,603
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,325,263
---------------
TOTAL ENERGY 3,057,144
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
UTILITIES 2.0%
GAS UTILITIES 0.8%
Southern Union Co.*+ 11,311 $ 271,234
Atmos Energy Corp. 9,730 266,115
Laclede Group, Inc. 6,470 201,541
South Jersey Industries, Inc. 3,750 197,100
---------------
TOTAL GAS UTILITIES 935,990
---------------
ELECTRIC UTILITIES 0.6%
Cleco Corp.+ 11,665 236,333
Duquesne Light Holdings, Inc.+ 12,195 229,876
IDACORP, Inc. 7,395 226,065
---------------
TOTAL ELECTRIC UTILITIES 692,274
---------------
MULTI-UTILITIES 0.5%
CMS Energy Corp.*+ 25,760 269,192
Sierra Pacific Resources*+ 24,320 255,360
---------------
TOTAL MULTI-UTILITIES 524,552
---------------
WATER UTILITIES 0.1%
American States Water Co. 4,715 122,590
---------------
TOTAL WATER UTILITIES 122,590
---------------
TOTAL UTILITIES 2,275,406
---------------
CONSUMER STAPLES 1.5%
FOOD PRODUCTS 0.6%
Chiquita Brands International, Inc. 10,830 238,910
Sanderson Farms, Inc.+ 4,952 214,323
American Italian Pasta Co. --
Class A+ 5,080 118,110
Ralcorp Holdings, Inc. 1,782 74,719
---------------
TOTAL FOOD PRODUCTS 646,062
---------------
FOOD & DRUG RETAILING 0.4%
Longs Drug Stores Corp. 7,890 217,527
Central European Distribution
Corp.* 7,335 216,676
Smart & Final, Inc.* 2,955 42,522
Winn-Dixie Stores, Inc.+ 4,841 22,027
---------------
TOTAL FOOD & DRUG RETAILING 498,752
---------------
PERSONAL PRODUCTS 0.2%
Nu Skin Enterprises, Inc.+ 9,407 238,750
---------------
TOTAL PERSONAL PRODUCTS 238,750
---------------
HOUSEHOLD PRODUCTS 0.2%
Central Garden and Pet Co.* 3,925 163,829
---------------
TOTAL HOUSEHOLD PRODUCTS 163,829
---------------
TOBACCO 0.1%
Vector Group Ltd. 7,390 122,896
---------------
TOTAL TOBACCO 122,896
---------------
TOTAL CONSUMER STAPLES 1,670,289
---------------
See Notes to Financial Statements.
80 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 0.4%
WIRELESS TELECOMMUNICATION SERVICES 0.3%
USA Mobility, Inc.* 6,333 $ 223,618
Ubiquitel, Inc.* 7,920 56,390
Dobson Communications Corp. --
Class A* 27,890 47,971
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 327,979
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.1%
Time Warner Telecom,
Inc. -- Class A* 19,930 86,895
Golden Telecom, Inc. 3,040 80,317
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 167,212
---------------
TOTAL TELECOMMUNICATION SERVICES 495,191
---------------
TOTAL COMMON STOCKS
(Cost $60,973,106) 65,550,951
---------------
FACE
AMOUNT
-------------
FEDERAL AGENCY DISCOUNT NOTES 8.9%
Farmer Mac**
2.12% due 01/14/05 $ 2,000,000 1,998,705
Federal Farm Credit Bank**
2.18% due 01/06/05 2,000,000 1,999,653
Federal Home Loan Bank**
2.15% due 01/05/05 2,000,000 1,999,761
Freddie Mac**
2.21% due 01/14/05 4,000,000 3,997,299
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $9,995,418) 9,995,418
---------------
REPURCHASE AGREEMENTS 29.2%
Repurchase Agreement (Note 5)
1.55% due 01/03/05++ 8,450,129 8,450,129
1.48% due 01/03/05 16,390,719 16,390,719
1.25% due 01/03/05 8,023,429 8,023,429
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $32,864,277) 32,864,277
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 4.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 5,310,738 $ 5,310,738
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,310,738) 5,310,738
---------------
TOTAL INVESTMENTS 101.0%
(Cost $109,143,539) $ 113,721,384
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (1.0)% $ (1,072,588)
===============
NET ASSETS - 100.0% $ 112,648,796
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of Contracts
$52,330,500) 802 $ 1,178,307
===============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENTS
February 2005 Russell 2000 Index Swap,
Maturing 02/22/05***
(Notional Market Value $48,704,189) 74,749 $ 1,474,112
March 2005 Russell 2000 Index Swap,
Maturing 03/14/05***
(Notional Market Value $2,516,979) 3,863 51,435
---------------
(TOTAL NOTIONAL MARKET VALUE
$51,221,168) $ 1,525,547
===============
* Non-Income Producing Securities.
** 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.
*** Price Return based on Russell 2000 Index +/- financing at a variable rate.
+ All or a portion of this security is on loan at December 31, 2004 - See
Note 8.
++ All or a portion of this security is held as collateral at December 31,
2004.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 81
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 17.3%
Fannie Mae*
2.25% due 01/26/05 $ 250,000 $ 249,641
Farmer Mac*
2.24% due 01/06/05 250,000 249,953
Federal Home Loan Bank*
2.22% due 01/06/05 250,000 249,954
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $749,548) 749,548
---------------
REPURCHASE AGREEMENTS 89.7%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 968,873 968,873
1.48% due 01/03/05 1,965,324 1,965,324
1.25% due 01/03/05 962,046 962,046
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,896,243) 3,896,243
---------------
TOTAL INVESTMENTS 107.0%
(Cost $4,645,791) $ 4,645,791
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (7.0)% $ (301,995)
===============
NET ASSETS - 100.0% $ 4,343,796
==============================================================================
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $652,500) 10 $ (14,093)
===============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
February 2005 Russell 2000 Index Swap,
Maturing 02/22/05**
(Notional Market Value $3,662,529) 5,621 $ (89,390)
---------------
* 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.
** PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
82 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 18.5%
Fannie Mae*
2.15% due 01/07/05 $ 2,000,000 $ 1,999,522
Federal Home Loan Bank*
2.20% due 01/07/05 4,000,000 3,999,022
Freddie Mac*
2.12% due 01/11/05 3,000,000 2,998,587
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $8,997,131) 8,997,131
---------------
U.S. TREASURY OBLIGATIONS 36.2%
U.S. Treasury Bond
5.38% due 02/15/31 16,297,000 17,628,770
---------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $16,386,361) 17,628,770
---------------
REPURCHASE AGREEMENTS 42.3%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 5,123,749 5,123,749
1.48% due 01/03/05 10,393,340 10,393,340
1.25% due 01/03/05 5,087,649 5,087,649
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $20,604,738) 20,604,738
---------------
TOTAL INVESTMENTS 97.0%
(Cost $45,988,230) $ 47,230,639
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 3.0% $ 1,478,453
===============
NET ASSETS - 100.0% $ 48,709,092
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value
of Contracts $60,187,500) 535 $ 484,056
===============
* 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.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 83
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
JUNO FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 60.8%
Fannie Mae*
2.17% due 01/07/05 $ 3,000,000 $ 2,999,277
Farmer Mac*
2.12% due 01/14/05 7,000,000 6,995,466
Federal Farm Credit Bank*
2.19% due 01/18/05+ 3,000,000 2,997,262
Federal Home Loan Bank*
2.22% due 01/07/05+ 5,000,000 4,998,767
2.15% due 01/05/05+ 4,000,000 3,999,522
Freddie Mac*
2.21% due 01/14/05+ 3,000,000 2,997,974
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $24,988,268) 24,988,268
---------------
CONTRACTS
-------------
OPTIONS PURCHASED 0.0%
Call Options on:
March 2005 U.S. Treasury Bond Futures Contracts
Expiring March 2005 with
strike price of 1260 191 2,984
March 2005 U.S Treasury Bond Futures Contracts
Expiring March 2005 with strike
price of 1240 18 281
---------------
TOTAL OPTIONS PURCHASED
(Cost $4,259) 3,265
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 121.0%
Repurchase Agreement (Note 5)
1.55% due 01/03/05+ $ 4,302,078 $ 4,302,078
1.48% due 01/03/05+ 8,726,611 8,726,611
1.25% due 01/03/05+ 4,271,768 4,271,768
Individual Repurchase Agreement
Lehman Brothers, Inc. at 0.95%
due 01/03/05 (Secured by U.S.
Treasury Bonds, at a rate of 5.375%
and maturing 02/15/31
as collateral, with a Market Value
of $33,058,050) 32,405,000 32,405,000
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $49,705,457) 49,705,457
---------------
TOTAL INVESTMENTS 181.8%
(Cost $74,697,984) $ 74,696,990
===============
U.S. TREASURY OBLIGATIONS SOLD SHORT (77.7)%
U.S. Treasury Bond
(Cost $32,524,572) $ 29,525,000 (31,937,746)
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.1)% $ (1,661,448)
===============
NET ASSETS - 100.0% $ 41,097,796
==============================================================================
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2005 U.S. Treasury Bond Futures Contracts
(Aggregate Market Value of
Contracts $13,837,500) 123 $ (24,566)
===============
* 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.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
See Notes to Financial Statements.
84 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND MARKET
- --------------------------------------------------------------------------------
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 18.2%
Farmer Mac*
2.12% due 01/14/05 $ 2,000,000 $ 1,998,704
Federal Farm Credit Bank*
2.18% due 01/06/05 3,000,000 2,999,455
Federal Home Loan Bank*
2.15% due 01/05/05 3,000,000 2,999,642
Freddie Mac*
2.21% due 01/14/05 2,000,000 1,998,649
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $9,996,450) 9,996,450
---------------
REPURCHASE AGREEMENTS 77.3%
Repurchase Agreement (Note 5)
1.55% due 01/03/05+ $ 18,013,659 18,013,659
1.48% due 01/03/05 16,458,627 16,458,627
1.25% due 01/03/05 8,056,671 8,056,671
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $42,528,957) 42,528,957
---------------
TOTAL INVESTMENTS 95.5%
(Cost $52,525,407) $ 52,525,407
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 4.5% $ 2,468,842
===============
NET ASSETS - 100.0% $ 54,994,249
==============================================================================
UNREALIZED
GAIN
UNITS (NOTE 1)
- ------------------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENT
March 2005 Dow Jones
STOXX 50 Index Swap,
Maturing 3/14/05**
(Notional Market Value
$68,713,017) 18,178 $ 989,008
---------------
* 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.
** PRICE RETURN BASED ON DOW JONES STOXX 50 INDEX +/- FINANCING AT A
VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 85
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 28.1%
Farmer Mac*
2.12% due 01/14/05 $ 2,000,000 $ 1,998,704
Federal Farm Credit Bank*
2.18% due 01/06/05 2,000,000 1,999,653
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $3,998,357) 3,998,357
---------------
REPURCHASE AGREEMENTS 34.9%
Repurchase Agreement (Note 5)
1.55% due 01/03/05+ 2,427,975 2,427,975
1.48% due 01/03/05 1,704,714 1,704,714
1.25% due 01/03/05 834,475 834,475
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,967,164) 4,967,164
---------------
TOTAL INVESTMENTS 63.0%
(Cost $8,965,521) $ 8,965,521
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 37.0% $ 5,262,570
===============
NET ASSETS - 100.0% $ 14,228,091
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 Nikkei 225 Index Futures Contracts
(Aggregate Market Value of
Contracts $983,450) 17 $ 21,559
March 2005 Yen Currency Exchange Futures Contracts
(Aggregate Market Value of
Contracts $1,592,013) 13 10,201
---------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $2,575,463) $ 31,760
---------------
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2005 Topix 100 Index Swap,
Maturing 03/14/05**
(Notional Market
Value $16,861,372) 2,075,051 $ 827,597
===============
* 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.
** PRICE RETURN BASED ON TOPIX 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
See Notes to Financial Statements.
86 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 66.2%
INDUSTRIALS 18.4%
AEROSPACE & DEFENSE 8.6%
United Technologies Corp. 4,730 $ 488,846
Boeing Co. 4,730 244,872
Honeywell International, Inc. 4,730 167,489
---------------
TOTAL AEROSPACE & DEFENSE 901,207
---------------
INDUSTRIAL CONGLOMERATES 5.4%
3M Co.+ 4,730 388,191
General Electric Co. 4,730 172,645
---------------
TOTAL INDUSTRIAL CONGLOMERATES 560,836
---------------
MACHINERY 4.4%
Caterpillar, Inc.+ 4,730 461,222
---------------
TOTAL MACHINERY 461,222
---------------
TOTAL INDUSTRIALS 1,923,265
---------------
CONSUMER STAPLES 9.6%
TOBACCO 2.8%
Altria Group, Inc.+ 4,730 289,003
---------------
TOTAL TOBACCO 289,003
---------------
HOUSEHOLD PRODUCTS 2.5%
Procter & Gamble Co. 4,730 260,528
---------------
TOTAL HOUSEHOLD PRODUCTS 260,528
---------------
FOOD & DRUG RETAILING 2.4%
Wal-Mart Stores, Inc. 4,730 249,839
---------------
TOTAL FOOD & DRUG RETAILING 249,839
---------------
BEVERAGES 1.9%
Coca-Cola Co. 4,730 196,910
---------------
TOTAL BEVERAGES 196,910
---------------
TOTAL CONSUMER STAPLES 996,280
---------------
FINANCIALS 9.5%
DIVERSIFIED FINANCIALS 3.9%
Citigroup, Inc. 4,730 227,892
J.P. Morgan Chase & Co. 4,730 184,517
---------------
TOTAL DIVERSIFIED FINANCIALS 412,409
---------------
INSURANCE 3.0%
American International Group, Inc.+ 4,730 310,619
---------------
TOTAL INSURANCE 310,619
---------------
CONSUMER FINANCE 2.6%
American Express Co. 4,730 266,630
---------------
TOTAL CONSUMER FINANCE 266,630
---------------
TOTAL FINANCIALS 989,658
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INFORMATION TECHNOLOGY 7.7%
COMPUTERS & PERIPHERALS 5.4%
International Business Machines
Corp. 4,730 $ 466,283
Hewlett-Packard Co. 4,730 99,188
---------------
TOTAL COMPUTERS & PERIPHERALS 565,471
---------------
SOFTWARE 1.2%
Microsoft Corp. 4,730 126,338
---------------
TOTAL SOFTWARE 126,338
---------------
SEMICONDUCTOR & SEMICONDUCT
OR EQUIPMENT 1.1%
Intel Corp. 4,730 110,635
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 110,635
---------------
TOTAL INFORMATION TECHNOLOGY 802,444
---------------
CONSUMER DISCRETIONARY 6.5%
SPECIALTY RETAIL 1.9%
Home Depot, Inc. 4,730 202,160
---------------
TOTAL SPECIALTY RETAIL 202,160
---------------
AUTOMOBILES 1.8%
General Motors Corp.+ 4,730 189,484
---------------
TOTAL AUTOMOBILES 189,484
---------------
HOTELS RESTAURANTS & LEISURE 1.5%
McDonald's Corp. 4,730 151,644
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 151,644
---------------
MEDIA 1.3%
Walt Disney Co.+ 4,730 131,494
---------------
TOTAL MEDIA 131,494
---------------
TOTAL CONSUMER DISCRETIONARY 674,782
---------------
HEALTH CARE 5.6%
PHARMACEUTICALS 5.6%
Johnson & Johnson, Inc. 4,730 299,977
Merck & Co., Inc. 4,730 152,022
Pfizer, Inc. 4,730 127,190
---------------
TOTAL PHARMACEUTICALS 579,189
---------------
TOTAL HEALTH CARE 579,189
---------------
MATERIALS 3.6%
CHEMICALS 2.2%
EI Du Pont de Nemours & Co. 4,730 232,006
---------------
TOTAL CHEMICALS 232,006
---------------
METALS & MINING 1.4%
Alcoa, Inc. 4,730 148,617
---------------
TOTAL METALS & MINING 148,617
---------------
TOTAL MATERIALS 380,623
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 87
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 3.0%
DIVERSIFIED TELECOMMUNICATION SERVICES 3.0%
Verizon Communications, Inc. 4,730 $ 191,612
SBC Communications, Inc. 4,730 121,892
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 313,504
---------------
TOTAL TELECOMMUNICATION SERVICES 313,504
---------------
ENERGY 2.3%
OIL & GAS 2.3%
Exxon Mobil Corp. 4,730 242,460
---------------
TOTAL OIL & GAS 242,460
---------------
TOTAL ENERGY 242,460
---------------
TOTAL COMMON STOCKS
(Cost $6,599,108) 6,902,205
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 28.0%
Repurchase Agreement (Note 5)
1.55% due 01/03/05++ $ 1,257,546 1,257,546
1.48% due 01/03/05 1,112,034 1,112,034
1.25% due 01/03/05 544,353 544,353
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,913,933) 2,913,933
---------------
SECURITIES LENDING COLLATERAL 6.0%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 621,340 621,340
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $621,340) $ 621,340
---------------
TOTAL INVESTMENTS 100.2%
(Cost $10,134,381) $ 10,437,478
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.2)% $ (18,135)
===============
NET ASSETS - 100.0% $ 10,419,343
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2005 Dow Jones Industrial Average
Index Mini Futures Contracts
(Aggregate Market Value of Contracts
$6,849,745) 127 $ 53,336
===============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2005 Dow Jones Industrial Average
Index Swap, Maturing 03/14/05*
(Notional Market Value $7,115,159) 660 $ 9,579
---------------
* PRICE RETURN BASED ON DOW JONES INDUSTRIAL AVERAGE INDEX +/- FINANCING AT
A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
See Notes to Financial Statements.
88 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
INVERSE DYNAMIC DOW 30 FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 22.0%
Fannie Mae*
2.25% due 01/26/05 $ 200,000 $ 199,713
Farmer Mac*
2.24% due 01/06/05 250,000 249,953
Federal Home Loan Bank*
2.22% due 01/06/05 250,000 249,954
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $699,620) 699,620
---------------
REPURCHASE AGREEMENTS 73.6%
Repurchase Agreement (Note 5)
1.55% due 01/03/05+ 741,185 741,185
1.48% due 01/03/05 1,075,414 1,075,414
1.25% due 01/03/05 526,427 526,427
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,343,026) 2,343,026
---------------
TOTAL INVESTMENTS 95.6%
(Cost $3,042,646) $ 3,042,646
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 4.4% $ 141,652
===============
NET ASSETS - 100.0% $ 3,184,298
==============================================================================
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2005 Dow Jones Industrial Average
Index Mini Futures Contracts
(Aggregate Market Value
of Contracts $4,260,865) 79 $ (105,806)
===============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2005 Dow Jones Industrial Average
Index Swap, Maturing 03/14/05**
(Notional Market Value $2,132,460) 198 $ (13,425)
===============
* 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.
** PRICE RETURN BASED ON DOW JONES INDUSTRIAL AVERAGE INDEX +/- FINANCING AT
A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS COLLATERAL AT DECEMBER 31,
2004.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 89
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.4%
INDUSTRIALS 21.9%
COMMERCIAL SERVICES & SUPPLIES 5.7%
Waste Connections, Inc.* 8,521 $ 291,844
United Stationers, Inc.* 5,873 271,333
Ionics, Inc.*+ 4,044 175,267
ABM Industries, Inc. 8,624 170,065
Tetra Tech, Inc.* 9,990 167,233
G & K Services, Inc. -- Class A 3,726 161,783
School Specialty, Inc.* 4,037 155,667
NCO Group, Inc.* 5,691 147,112
Viad Corp. 3,938 112,194
Consolidated Graphics, Inc.* 2,424 111,262
Bowne & Co., Inc. 6,365 103,495
Central Parking Corp. 6,502 98,505
Imagistics International, Inc.* 2,900 97,614
Spherion Corp.* 10,836 91,022
Mobile Mini, Inc.* 2,599 85,871
Volt Information Sciences, Inc.* 2,704 79,470
CDI Corp. 3,496 74,744
Standard Register Co. 5,075 71,659
PRG-Schultz International, Inc.* 10,997 55,315
SOURCECORP, Inc.* 2,798 53,470
Insurance Auto Auctions, Inc.* 2,052 46,006
Angelica Corp. 1,598 43,226
On Assignment, Inc.* 4,490 23,303
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,687,460
---------------
MACHINERY 5.0%
Timken Co. 16,035 417,231
Briggs & Stratton Corp.+ 9,160 380,873
Reliance Steel & Aluminum Co. 5,794 225,734
Mueller Industries, Inc. 6,461 208,044
Albany International Corp. --
Class A 5,635 198,127
Watts Industries, Inc. -- Class A. 5,747 185,283
Gardner Denver, Inc.* 3,528 128,031
Thomas Industries, Inc. 3,138 125,269
Barnes Group, Inc. 4,120 109,221
Valmont Industries, Inc. 4,246 106,617
Stewart & Stevenson Services, Inc. 5,107 103,315
Robbins & Myers, Inc. 2,581 61,505
Astec Industries, Inc.* 3,549 61,078
Lydall, Inc.* 3,311 39,268
Wolverine Tube, Inc.* 2,650 34,212
---------------
TOTAL MACHINERY 2,383,808
---------------
AEROSPACE & DEFENSE 2.4%
Curtiss-Wright Corp. 3,805 218,445
Moog, Inc. -- Class A* 4,561 206,841
DRS Technologies, Inc.* 4,837 206,588
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Esterline Technologies Corp.* 4,361 $ 142,387
Cubic Corp. 4,750 119,558
Triumph Group, Inc.* 2,824 111,548
AAR Corp.* 5,731 78,056
Kaman Corp. -- Class A 4,037 51,068
---------------
TOTAL AEROSPACE & DEFENSE 1,134,491
---------------
ROAD & RAIL 2.3%
Yellow Roadway Corp.*+ 8,634 481,000
Arkansas Best Corp. 4,464 200,389
Kansas City Southern* 11,145 197,601
USF Corp. 4,967 188,498
---------------
TOTAL ROAD & RAIL 1,067,488
---------------
TRADING COMPANIES & DISTRIBUTORS 1.5%
Hughes Supply, Inc.+ 11,736 379,660
Watsco, Inc. 4,744 167,084
Applied Industrial Technologies, Inc. 5,261 144,151
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 690,895
---------------
CONSTRUCTION & ENGINEERING 1.4%
URS Corp.* 7,726 248,005
Shaw Group, Inc.* 11,384 203,204
EMCOR Group, Inc.* 2,690 121,534
Insituform Technologies, Inc. --
Class A* 4,751 107,705
---------------
TOTAL CONSTRUCTION & ENGINEERING 680,448
---------------
ELECTRICAL EQUIPMENT 1.3%
A.O. Smith Corp. 5,237 156,796
Woodward Governor Co. 2,006 143,650
Regal-Beloit Corp.+ 4,347 124,324
Vicor Corp. 7,480 98,063
C&D Technologies, Inc. 4,505 76,765
MagneTek, Inc.* 5,074 35,010
---------------
TOTAL ELECTRICAL EQUIPMENT 634,608
---------------
BUILDING PRODUCTS 1.2%
Lennox International, Inc. 10,701 217,765
Griffon Corp.* 5,210 140,670
Universal Forest Products, Inc. 3,177 137,882
Apogee Enterprises, Inc. 4,849 65,025
---------------
TOTAL BUILDING PRODUCTS 561,342
---------------
AIRLINES 0.7%
SkyWest, Inc. 10,205 204,712
Frontier Airlines, Inc.* 6,327 72,191
Mesa Air Group, Inc.*+ 5,610 44,544
---------------
TOTAL AIRLINES 321,447
---------------
INDUSTRIAL CONGLOMERATES 0.4%
Tredegar Corp. 6,856 138,560
Standex International Corp. 2,194 62,507
---------------
TOTAL INDUSTRIAL CONGLOMERATES 201,067
---------------
TOTAL INDUSTRIALS 10,363,054
---------------
See Notes to Financial Statements.
90 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
FINANCIALS 20.0%
BANKS 5.4%
South Financial Group, Inc. 12,630 $ 410,854
Whitney Holding Corp. 7,463 335,760
Chittenden Corp. 8,223 236,247
Provident Bankshares Corp. 5,886 214,074
Susquehanna Bancshares, Inc. 8,263 206,162
Umpqua Holding Corp. 7,931 199,941
First Republic Bank 2,910 154,230
Community Bank System, Inc. 5,442 153,736
Irwin Financial Corp. 5,038 143,029
Boston Private Financial Holdings,
Inc.+ 4,900 138,033
Riggs National Corp. 5,617 119,417
Sterling Bancshares, Inc./TX 7,980 113,875
Gold Banc Corp., Inc. 7,140 104,387
---------------
TOTAL BANKS 2,529,745
---------------
THRIFTS & MORTGAGE FINANCE 5.1%
Fremont General Corp. 13,700 344,966
Downey Financial Corp. 4,946 281,922
MAF Bancorp, Inc. 5,960 267,127
Flagstar Bancorp, Inc. 10,898 246,295
Commercial Federal Corp. 6,993 207,762
Brookline Bancorp, Inc. 10,511 171,540
Bankunited Financial Corp. --
Class A* 5,334 170,421
Waypoint Financial Corp. 5,951 168,711
Sterling Financial Corp./WA* 4,050 159,003
FirstFed Financial Corp.* 2,924 151,668
Anchor BanCorp Wisconsin, Inc. 4,076 118,815
Dime Community Bancshares 6,620 118,564
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,406,794
---------------
REAL ESTATE 4.4%
Shurgard Storage Centers, Inc. --
Class A 8,261 363,567
Capital Automotive REIT 7,644 271,553
Entertainment Properties Trust 4,513 201,054
Lexington Corporate Properties
Trust 8,616 194,549
Colonial Properties Trust 4,867 191,127
Commercial Net Lease Realty 9,231 190,159
Gables Residential Trust 5,205 186,287
CRT Properties, Inc. 5,550 132,423
Glenborough Realty Trust, Inc. 5,680 120,870
Parkway Properties, Inc./MD 2,350 119,262
Sovran Self Storage, Inc. 2,805 118,203
---------------
TOTAL REAL ESTATE 2,089,054
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INSURANCE 3.6%
UICI 8,122 $ 275,336
Delphi Financial Group, Inc. --
Class A 5,626 259,640
Selective Insurance Group, Inc. 4,933 218,236
ProAssurance Corp.* 5,185 202,785
RLI Corp. 4,489 186,608
Zenith National Insurance Corp. 3,424 170,652
LandAmerica Financial Group, Inc. 3,161 170,473
Stewart Information Services Corp. 3,219 134,071
Presidential Life Corp. 5,219 88,514
SCPIE Holdings Inc.* 1,765 17,474
---------------
TOTAL INSURANCE 1,723,789
---------------
CAPITAL MARKETS 0.8%
Piper Jaffray Cos., Inc.* 3,532 169,359
Investment Technology Group, Inc.* 7,450 149,000
SWS Group, Inc. 3,065 67,185
---------------
TOTAL CAPITAL MARKETS 385,544
---------------
CONSUMER FINANCE 0.4%
Cash America International, Inc. 5,087 151,237
Rewards Network, Inc.* 4,400 30,800
---------------
TOTAL CONSUMER FINANCE 182,037
---------------
DIVERSIFIED FINANCIALS 0.3%
Financial Federal Corp.* 3,081 120,775
---------------
TOTAL DIVERSIFIED FINANCIALS 120,775
---------------
TOTAL FINANCIALS 9,437,738
---------------
CONSUMER DISCRETIONARY 14.6%
SPECIALTY RETAIL 5.1%
Zale Corp.*+ 9,210 275,103
Men's Wearhouse, Inc.*+ 6,360 203,266
GameStop Corp. -- Class B* 9,010 201,914
Linens `N Things, Inc.*+ 8,026 199,045
Sonic Automotive, Inc. 7,350 182,280
Burlington Coat Factory Warehouse
Corp. 7,933 180,079
PEP Boys-Manny Moe & Jack 10,160 173,431
Stage Stores, Inc.* 3,160 131,203
Group 1 Automotive, Inc.* 4,108 129,402
Jo-Ann Stores, Inc.* 4,021 110,738
TBC Corp.* 3,960 110,088
Movie Gallery, Inc.+ 5,525 105,362
Building Material Holding Corp. 2,442 93,504
Dress Barn, Inc.* 5,299 93,262
Haverty Furniture Cos., Inc. 4,020 74,370
Gymboree Corp.* 5,460 69,997
Goody's Family Clothing, Inc. 5,825 53,241
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 91
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Hancock Fabrics, Inc./DE 3,363 $ 34,874
---------------
TOTAL SPECIALTY RETAIL 2,421,159
---------------
HOUSEHOLD DURABLES 3.0%
M.D.C. Holdings, Inc. 5,720 494,437
Standard-Pacific Corp. 5,937 380,799
La-Z-Boy, Inc. 9,251 142,188
Russ Berrie & Co., Inc. 3,704 84,599
Skyline Corp. 1,490 60,792
National Presto Industries, Inc. 1,214 55,237
Libbey, Inc. 2,450 54,414
Bassett Furniture Industries, Inc. 2,073 40,683
Department 56, Inc.* 2,399 39,943
Applica, Inc.* 4,274 25,858
Enesco Group, Inc.* 2,555 20,644
Fedders Corp. 5,380 19,476
---------------
TOTAL HOUSEHOLD DURABLES 1,419,070
---------------
HOTELS RESTAURANTS & LEISURE 2.8%
Jack in the Box, Inc.*+ 6,541 241,167
Aztar Corp.* 6,160 215,107
Pinnacle Entertainment, Inc.* 7,069 139,825
Landry's Restaurants, Inc. 4,709 136,844
Marcus Corp. 5,354 134,600
Ryan's Restaurant Group, Inc.* 7,415 114,339
Lone Star Steakhouse & Saloon, Inc. 3,627 101,556
Steak N Shake Co.* 4,910 98,593
Multimedia Games, Inc.* 4,990 78,642
O'Charleys, Inc.* 3,797 74,231
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,334,904
---------------
TEXTILES & APPAREL 1.1%
Kellwood Co.+ 4,916 169,602
Russell Corp. 5,802 113,023
Brown Shoe Co., Inc. 3,231 96,381
Stride Rite Corp. 6,535 72,996
Haggar Corp. 1,279 30,030
Ashworth, Inc.* 2,388 26,005
---------------
TOTAL TEXTILES & APPAREL 508,037
---------------
LEISURE EQUIPMENT & PRODUCTS 0.7%
K2, Inc.* 8,296 131,741
Jakks Pacific, Inc.*+ 4,658 102,988
Sturm Ruger & Co., Inc. 4,780 43,163
Action Performance Cos., Inc.+ 3,258 35,806
Meade Instruments Corp.* 3,552 12,183
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 325,881
---------------
INTERNET & CATALOG RETAIL 0.5%
Insight Enterprises, Inc.* 8,657 177,642
J. Jill Group, Inc.* 3,570 53,157
---------------
TOTAL INTERNET & CATALOG RETAIL 230,799
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MULTILINE RETAIL 0.5%
Fred's, Inc. 6,980 $ 121,452
ShopKo Stores, Inc.* 5,236 97,809
---------------
TOTAL MULTILINE RETAIL 219,261
---------------
AUTO COMPONENTS 0.4%
Superior Industries International,
Inc.+ 4,350 126,368
Standard Motor Products, Inc. 3,519 55,600
---------------
TOTAL AUTO COMPONENTS 181,968
---------------
AUTOMOBILES 0.3%
Monaco Coach Corp. 5,230 107,581
Coachmen Industries, Inc. 2,789 48,417
---------------
TOTAL AUTOMOBILES 155,998
---------------
MEDIA 0.1%
4Kids Entertainment, Inc.* 2,370 49,817
---------------
TOTAL MEDIA 49,817
---------------
DISTRIBUTORS 0.1%
Advanced Marketing Services, Inc. 3,388 34,083
---------------
TOTAL DISTRIBUTORS 34,083
---------------
TOTAL CONSUMER DISCRETIONARY 6,880,977
---------------
INFORMATION TECHNOLOGY 13.8%
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.5%
Benchmark Electronics, Inc.* 7,338 250,226
Anixter International, Inc.*+ 6,624 238,398
Coherent, Inc.* 5,387 163,980
Aeroflex, Inc.* 13,230 160,347
Paxar Corp.* 7,042 156,121
Technitrol, Inc.* 7,181 130,694
Checkpoint Systems, Inc.*+ 6,683 120,628
Veeco Instruments, Inc.* 5,280 111,250
Electro Scientific Industries, Inc.* 5,046 99,709
Agilsys, Inc. 5,736 98,315
Itron, Inc.* 3,760 89,902
CTS Corp. 6,378 84,764
Methode Electronics, Inc. -- Class A 6,365 81,790
Park Electrochemical Corp. 3,540 76,747
Photon Dynamics, Inc.* 2,990 72,597
Radisys Corp.* 3,402 66,509
Bell Microproducts, Inc.* 5,043 48,514
Gerber Scientific, Inc.* 3,960 30,136
Planar Systems, Inc.* 2,598 29,175
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,109,802
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.3%
Skyworks Solutions, Inc.* 27,640 260,645
Varian Semiconductor Equipment
Associates, Inc.* 6,470 238,420
Cymer, Inc.* 6,560 193,783
See Notes to Financial Statements.
92 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Axcelis Technologies, Inc.* 17,760 $ 144,389
Brooks Automation, Inc.* 7,920 136,382
FEI Co.*+ 5,910 124,110
DSP Group, Inc.* 4,980 111,203
Exar Corp.* 7,398 104,978
Photronics, Inc.*+ 5,799 95,684
Dupont Photomasks, Inc.* 3,292 86,942
Ultratech, Inc.* 4,230 79,736
Actel Corp.* 4,500 78,930
Cohu, Inc. 3,825 70,992
Standard Microsystems Corp.* 3,280 58,482
Advanced Energy Industries, Inc.* 5,810 53,045
Rudolph Technologies, Inc.*+ 2,990 51,338
ESS Technologies, Inc.* 7,030 49,983
Kopin Corp.* 12,440 48,143
Pericom Semiconductor Corp.* 4,712 44,434
Alliance Semiconductor Corp.* 6,306 23,332
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 2,054,951
---------------
COMMUNICATIONS EQUIPMENT 1.6%
Belden CDT, Inc. 8,327 193,186
Black Box Corp. 3,069 147,373
Symmetricom, Inc.* 8,049 78,156
C-COR, Inc.* 7,660 71,238
Bel Fuse, Inc. -- Class B 1,980 66,904
Audiovox Corp. -- Class A* 4,093 64,588
Network Equipment Technologies,
Inc.* 4,349 42,707
PC-Tel, Inc.* 3,683 29,206
Tollgrade Communications, Inc.* 2,336 28,593
Brooktrout, Inc.* 2,260 27,143
---------------
TOTAL COMMUNICATIONS EQUIPMENT 749,094
---------------
SOFTWARE 1.4%
THQ, Inc.* 6,907 158,447
Verity, Inc.* 6,636 87,064
JDA Software Group, Inc.* 5,173 70,456
MRO Software, Inc.* 4,440 57,809
SPSS, Inc.* 3,120 48,797
EPIQ Systems, Inc.* 3,180 46,555
MapInfo Corp.* 3,620 43,368
Concord Communications, Inc.* 3,250 36,010
Phoenix Technologies, Ltd.* 4,355 35,972
NYFIX, Inc.* 5,760 35,654
Radiant Systems, Inc.* 4,700 30,597
Captaris, Inc.* 5,395 27,838
---------------
TOTAL SOFTWARE 678,567
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 0.9%
Hutchinson Technology, Inc.* 4,633 $ 160,163
Adaptec, Inc.* 19,755 149,940
Pinnacle Systems, Inc.* 12,317 75,134
SBS Technologies, Inc.* 2,760 38,530
---------------
TOTAL COMPUTERS & PERIPHERALS 423,767
---------------
IT CONSULTING & SERVICES 0.7%
MAXIMUS, Inc.* 3,850 119,812
Ciber, Inc.* 11,094 106,946
Pegasus Solutions, Inc.* 3,868 48,737
Intrado, Inc.* 3,090 37,389
---------------
TOTAL IT CONSULTING & SERVICES 312,884
---------------
INTERNET SOFTWARE & SERVICES 0.4%
Digital Insight Corp.* 6,344 116,730
FindWhat.com*+ 5,380 95,387
---------------
TOTAL INTERNET SOFTWARE & SERVICES 212,117
---------------
TOTAL INFORMATION TECHNOLOGY 6,541,182
---------------
HEALTH CARE 7.8%
HEALTH CARE PROVIDERS & SERVICES 4.6%
Pediatrix Medical Group, Inc.* 3,970 254,278
Accredo Health, Inc.* 8,690 240,887
United Surgical Partners International,
Inc.* 5,060 211,002
Province Healthcare Co.*+ 8,843 197,641
Owens & Minor, Inc. 7,010 197,472
Priority Healthcare Corp. --
Class B* 7,740 168,500
Sunrise Senior Living, Inc.* 3,617 167,684
Chemed Corp. 2,218 148,850
NDCHealth Corp. 6,390 118,790
Cross Country Healthcare, Inc.* 5,692 102,911
Parexel International Corp.* 4,623 93,847
RehabCare Group, Inc.* 2,919 81,703
Gentiva Health Services, Inc.* 4,269 71,378
Hooper Holmes, Inc. 11,550 68,376
OCA, Inc.*+ 8,906 56,553
Curative Health Services, Inc.* 2,294 15,714
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,195,586
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.6%
Invacare Corp. 5,548 256,650
Sola International, Inc.* 5,726 157,694
Conmed Corp.* 5,304 150,740
Analogic Corp. 2,425 108,616
Viasys Healthcare, Inc.* 5,514 104,766
Datascope Corp. 2,626 104,226
Vital Signs, Inc. 2,255 87,765
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 93
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Wilson Greatbatch Technologies, Inc.* 3,800 $ 85,196
DJ Orthopedics, Inc.* 3,810 81,610
ICU Medical, Inc.*+ 2,410 65,889
Theragenics Corp* 5,329 21,636
Osteotech, Inc.* 3,055 16,802
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,241,590
---------------
PHARMACEUTICALS 0.5%
Alpharma, Inc. -- Class A 9,366 158,754
Bradley Pharmaceuticals, Inc.* 2,810 54,514
---------------
TOTAL PHARMACEUTICALS 213,268
---------------
BIOTECHNOLOGY 0.1%
Arqule, Inc.* 5,138 29,749
Savient Pharmaceuticals, Inc.* 10,743 29,114
---------------
TOTAL BIOTECHNOLOGY 58,863
---------------
TOTAL HEALTH CARE 3,709,307
---------------
MATERIALS 7.2%
METALS & MINING 2.7%
Commercial Metals Co. 5,222 264,024
Carpenter Technology Corp. 4,253 248,630
Quanex Corp.+ 2,938 201,459
Century Aluminum Co.* 5,690 149,420
Aleris International, Inc.* 5,126 86,732
RTI International Metals, Inc.* 3,848 79,038
Ryerson Tull, Inc. 4,444 69,993
Brush Engineered Materials, Inc.* 3,408 63,048
Steel Technologies, Inc. 2,273 62,530
A.M. Castle & Co.* 2,803 33,468
---------------
TOTAL METALS & MINING 1,258,342
---------------
CHEMICALS 2.1%
OM Group, Inc.* 5,043 163,494
PolyOne Corp.* 16,280 147,497
H.B. Fuller Co. 5,084 144,945
Cambrex Corp. 4,640 125,744
Arch Chemicals, Inc. 4,165 119,869
A. Schulman, Inc. 5,430 116,256
Wellman, Inc. 5,692 60,847
Material Sciences Corp.* 2,557 46,000
Quaker Chemical Corp. 1,720 42,725
Penford Corp. 1,564 24,602
---------------
TOTAL CHEMICALS 991,979
---------------
CONTAINERS & PACKAGING 1.4%
AptarGroup, Inc. 6,355 335,417
Rock-Tenn Co. -- Class A 6,331 95,978
Chesapeake Corp. 3,466 94,137
Caraustar Industries, Inc.* 5,059 85,092
Myers Industries, Inc. 6,123 78,374
---------------
TOTAL CONTAINERS & PACKAGING 688,998
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 0.5%
Texas Industries, Inc.+ 3,852 $ 240,288
---------------
TOTAL CONSTRUCTION MATERIALS 240,288
---------------
PAPER & FOREST PRODUCTS 0.5%
Schweitzer-Mauduit International, Inc. 2,636 89,492
Buckeye Technologies, Inc.* 6,637 86,347
Pope & Talbot, Inc. 2,891 49,465
---------------
TOTAL PAPER & FOREST PRODUCTS 225,304
---------------
TOTAL MATERIALS 3,404,911
---------------
UTILITIES 6.7%
GAS UTILITIES 4.0%
Atmos Energy Corp. 13,598 371,905
UGI Corp. 9,052 370,317
Southern Union Co.*+ 14,630 350,835
Piedmont Natural Gas Co.+ 13,622 316,575
Northwest Natural Gas Co. 4,875 164,483
Southwest Gas Corp. 6,408 162,763
Laclede Group, Inc. 3,736 116,377
Cascade Natural Gas Corp. 1,996 42,315
---------------
TOTAL GAS UTILITIES 1,895,570
---------------
ELECTRIC UTILITIES 2.2%
Allete, Inc. 5,248 192,864
Cleco Corp.+ 8,688 176,019
El Paso Electric Co.* 8,423 159,532
Unisource Energy Corp. 6,092 146,878
CH Energy Group, Inc. 2,803 134,684
UIL Holding Corp. 2,591 132,918
Central Vermont Public Service Corp. 2,159 50,218
Green Mountain Power Corp. 913 26,322
---------------
TOTAL ELECTRIC UTILITIES 1,019,435
---------------
MULTI-UTILITIES 0.3%
Avista Corp. 8,606 152,068
---------------
TOTAL MULTI-UTILITIES 152,068
---------------
WATER UTILITIES 0.2%
American States Water Co. 2,966 77,116
---------------
TOTAL WATER UTILITIES 77,116
---------------
TOTAL UTILITIES 3,144,189
---------------
ENERGY 3.6%
ENERGY EQUIPMENT & SERVICES 2.4%
Maverick Tube Corp.* 7,580 229,674
SEACOR Holdings, Inc.* 3,252 173,657
Oceaneering International, Inc.* 4,555 169,992
Offshore Logistics, Inc.* 4,136 134,296
Veritas DGC, Inc.*+ 5,941 133,138
Input/Output, Inc.*+ 13,770 121,727
W-H Energy Services, Inc.* 4,925 110,123
Dril-Quip, Inc.* 3,078 74,672
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,147,279
---------------
See Notes to Financial Statements.
94 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
OIL & GAS 1.2%
Stone Energy Corp.* 4,740 $ 213,727
Spinnaker Exploration Co.* 6,025 211,297
Swift Energy Co.* 4,978 144,063
---------------
TOTAL OIL & GAS 569,087
---------------
TOTAL ENERGY 1,716,366
---------------
CONSUMER STAPLES 3.5%
FOOD PRODUCTS 1.9%
Corn Products International, Inc. 6,452 345,569
Flowers Foods, Inc. 7,679 242,503
Hain Celestial Group, Inc.* 6,481 133,963
J&J Snack Foods Corp. 1,605 78,693
American Italian Pasta Co. --
Class A+ 3,209 74,609
---------------
TOTAL FOOD PRODUCTS 875,337
---------------
FOOD & DRUG RETAILING 1.5%
Performance Food Group Co.* 8,314 223,730
Longs Drug Stores Corp. 6,695 184,581
Casey's General Stores, Inc. 8,892 161,390
Nash Finch Co. 2,222 83,902
Great Atlantic & Pacific Tea Co.* 6,852 70,233
---------------
TOTAL FOOD & DRUG RETAILING 723,836
---------------
TOBACCO 0.1%
DIMON, Inc. 8,021 53,901
---------------
TOTAL TOBACCO 53,901
---------------
TOTAL CONSUMER STAPLES 1,653,074
---------------
TELECOMMUNICATION SERVICES 0.3%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
General Communication -- Class A* 10,319 113,922
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 113,922
---------------
WIRELESS TELECOMMUNICATION SERVICES 0.1%
Boston Communications Group,
Inc.* 3,119 28,819
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 28,819
---------------
TOTAL TELECOMMUNICATION SERVICES 142,741
---------------
TOTAL COMMON STOCKS
(Cost $42,674,665) 46,993,539
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 253,522 $ 253,522
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $253,522) 253,522
---------------
SECURITIES LENDING COLLATERAL 3.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,563,541 1,563,541
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,563,541) 1,563,541
---------------
TOTAL INVESTMENTS 103.3%
(Cost $44,491,728) $ 48,810,602
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (3.3)% $ (1,537,086)
===============
NET ASSETS - 100.0% $ 47,273,516
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 95
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
FINANCIALS 24.3%
INSURANCE 8.0%
Fidelity National Financial, Inc. 6,235 $ 284,752
Everest Re Group Ltd. 2,008 179,837
Old Republic International Corp. 6,516 164,855
W.R. Berkley Corp. 3,013 142,123
First American Corp. 3,207 112,694
Unitrin, Inc. 2,452 111,443
Protective Life Corp. 2,482 105,957
Stancorp Financial Group, Inc. 1,020 84,150
American Financial Group, Inc./OH 2,636 82,533
HCC Insurance Holdings, Inc.+ 2,421 80,184
AmerUs Group Co. 1,400 63,420
Allmerica Financial Corp.* 1,905 62,541
Ohio Casualty Corp.* 2,215 51,410
Horace Mann Educators Corp. 1,528 29,154
---------------
TOTAL INSURANCE 1,555,053
---------------
THRIFTS & MORTGAGE FINANCE 5.1%
New York Community Bancorp, Inc.+ 9,480 195,004
Radian Group, Inc. 3,284 174,840
PMI Group, Inc.+ 3,411 142,409
Independence Community Bank
Corp.+ 3,025 128,805
Astoria Financial Corp. 2,665 106,520
Webster Financial Corp. 1,896 96,013
IndyMac Bancorp, Inc.+ 2,212 76,203
Washington Federal, Inc. 2,818 74,790
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 994,584
---------------
BANKS 4.6%
Banknorth Group, Inc. 6,293 230,324
Hibernia Corp. -- Class A 5,541 163,515
Mercantile Bankshares Corp. 2,832 147,831
City National Corp.+ 1,760 124,344
Colonial BancGroup, Inc. 4,778 101,437
FirstMerit Corp.+ 3,011 85,783
Greater Bay Bancorp+ 1,822 50,797
---------------
TOTAL BANKS 904,031
---------------
REAL ESTATE 3.2%
Liberty Property Trust 3,059 132,149
AMB Property Corp.+ 2,962 119,635
Hospitality Properties Trust 2,403 110,538
Mack-Cali Realty Corp. 2,178 100,253
New Plan Excel Realty Trust 3,670 99,384
Highwoods Properties, Inc. 1,921 53,212
---------------
TOTAL REAL ESTATE 615,171
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CAPITAL MARKETS 1.5%
A.G. Edwards, Inc. 2,730 $ 117,963
Jefferies Group, Inc. 2,046 82,413
Raymond James Financial, Inc. 2,637 81,694
LaBranche & Co., Inc.* 2,152 19,282
---------------
TOTAL CAPITAL MARKETS 301,352
---------------
DIVERSIFIED FINANCIALS 1.2%
Leucadia National Corp. 2,564 178,147
GATX Corp. 1,772 52,380
---------------
TOTAL DIVERSIFIED FINANCIALS 230,527
---------------
CONSUMER FINANCE 0.7%
AmeriCredit Corp.* 5,551 135,722
---------------
TOTAL CONSUMER FINANCE 135,722
---------------
TOTAL FINANCIALS 4,736,440
---------------
CONSUMER DISCRETIONARY 16.9%
HOUSEHOLD DURABLES 7.0%
D.R. Horton, Inc.+ 8,342 336,266
Lennar Corp.. -- Class A+ 5,588 316,728
Mohawk Industries, Inc.*+ 2,380 217,175
Toll Brothers, Inc.*+ 2,673 183,394
Hovnanian Enterprises, Inc. --
Class A* 2,183 108,102
Ryland Group, Inc. 1,700 97,818
American Greetings Corp. -- Class A 2,451 62,133
Furniture Brands International, Inc. 1,899 47,570
---------------
TOTAL HOUSEHOLD DURABLES 1,369,186
---------------
SPECIALTY RETAIL 2.7%
Foot Locker, Inc. 5,570 150,000
Barnes & Noble, Inc.* 2,509 80,966
Rent-A-Center, Inc.* 2,710 71,815
Borders Group, Inc. 2,681 68,097
Pier 1 Imports, Inc. 3,067 60,420
AnnTaylor Stores Corp.* 2,522 54,299
Payless Shoesource, Inc.* 2,441 30,024
---------------
TOTAL SPECIALTY RETAIL 515,621
---------------
MEDIA 2.0%
Belo Corp. -- Class A 4,113 107,925
Lee Enterprises, Inc. 1,620 74,650
Entercom Communications Corp.* 1,781 63,920
Media General, Inc. 840 54,440
Scholastic Corp.* 1,421 52,520
Emmis Communications Corp. --
Class A* 2,010 38,572
---------------
TOTAL MEDIA 392,027
---------------
AUTO COMPONENTS 2.0%
Lear Corp. 2,408 146,912
BorgWarner, Inc.+ 2,006 108,665
See Notes to Financial Statements.
96 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ArvinMeritor, Inc. 2,482 $ 55,523
Modine Manufacturing Co. 1,239 41,841
Bandag, Inc. 688 34,269
---------------
TOTAL AUTO COMPONENTS 387,210
---------------
HOTELS, RESTAURANTS & LEISURE 1.8%
Caesars Entertainment, Inc.* 11,191 225,387
CBRL Group, Inc. 1,718 71,898
Bob Evans Farms, Inc. 1,266 33,093
Krispy Kreme Doughnuts, Inc.*+ 2,210 27,846
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 358,224
---------------
MULTILINE RETAIL 1.2%
Neiman-Marcus Group, Inc. --
Class A+ 1,742 124,623
Saks, Inc.*+ 4,987 72,361
99 Cents Only Stores* 2,490 40,238
---------------
TOTAL MULTILINE RETAIL 237,222
---------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Callaway Golf Co. 2,731 36,869
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 36,869
---------------
TOTAL CONSUMER DISCRETIONARY 3,296,359
---------------
INFORMATION TECHNOLOGY 13.2%
SOFTWARE 3.0%
Cadence Design Systems, Inc.*+ 9,661 133,418
Synopsys, Inc.* 5,440 106,733
Activision, Inc.* 4,980 100,496
Fair Isaac Corp. 2,510 92,067
Sybase, Inc.* 3,403 67,890
Mentor Graphics Corp.* 2,730 41,742
Ascential Software Corp.* 2,098 34,218
---------------
TOTAL SOFTWARE 576,564
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.9%
International Rectifier Corp.*+ 2,390 106,522
Intersil Corp. -- Class A 5,379 90,045
Fairchild Semiconductor International,
Inc.* 4,269 69,414
Atmel Corp.* 17,070 66,914
Cypress Semiconductor Corp.* 4,500 52,785
RF Micro Devices, Inc.*+ 6,703 45,849
Integrated Device Technology, Inc.* 3,819 44,148
Credence Systems Corp.* 3,408 31,183
Lattice Semiconductor Corp.* 4,059 23,136
Triquint Semiconductor, Inc.* 4,922 21,903
LTX Corp.* 2,190 16,841
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 568,740
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.2%
Arrow Electronics, Inc.* 4,147 $ 100,772
Tech Data Corp.*+ 2,077 94,296
Vishay Intertechnology, Inc.* 5,936 89,159
Avnet, Inc.*+ 4,310 78,614
KEMET Corp.* 3,095 27,700
Newport Corp.* 1,539 21,700
Plexus Corp.* 1,541 20,049
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 432,290
---------------
IT CONSULTING & SERVICES 1.9%
CheckFree Corp.*+ 3,100 118,048
Ceridian Corp.* 5,310 97,067
BISYS Group, Inc.*+ 4,299 70,719
MPS Group, Inc.* 3,666 44,945
Keane, Inc.*+ 2,222 32,663
---------------
TOTAL IT CONSULTING & SERVICES 363,442
---------------
COMPUTERS & PERIPHERALS 1.7%
Sandisk Corp.* 5,830 145,575
Storage Technology Corp.*+ 3,812 120,498
Imation Corp. 1,212 38,578
McData Corp. -- Class A* 4,218 25,139
---------------
TOTAL COMPUTERS & PERIPHERALS 329,790
---------------
COMMUNICATIONS EQUIPMENT 1.5%
Utstarcom, Inc.* 4,088 90,549
Polycom, Inc.* 3,508 81,806
3Com Corp.* 13,571 56,591
CommScope, Inc.* 1,944 36,742
Powerwave Technologies, Inc.* 3,735 31,673
---------------
TOTAL COMMUNICATIONS EQUIPMENT 297,361
---------------
TOTAL INFORMATION TECHNOLOGY 2,568,187
---------------
UTILITIES 11.0%
ELECTRIC UTILITIES 6.4%
Pepco Holdings, Inc.+ 6,716 143,185
Wisconsin Energy Corp. 4,181 140,942
Alliant Energy Corp. 4,134 118,232
NSTAR 1,901 103,186
Puget Energy, Inc.+ 3,563 88,006
Northeast Utilities 4,592 86,559
OGE Energy Corp.+ 3,178 84,249
Hawaiian Electric Industries, Inc. 2,883 84,039
Great Plains Energy, Inc.+ 2,659 80,515
Westar Energy, Inc. 3,076 70,348
WPS Resources Corp. 1,341 66,996
PNM Resources, Inc. 2,157 54,551
Duquesne Light Holdings, Inc.+ 2,745 51,743
IDACORP, Inc. 1,491 45,580
Black Hills Corp. 1,161 35,620
---------------
TOTAL ELECTRIC UTILITIES 1,253,751
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 97
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MULTI-UTILITIES 3.9%
SCANA Corp. 4,012 $ 158,073
Energy East Corp. 5,255 140,203
MDU Resources Group, Inc. 4,220 112,590
Oneok, Inc. 3,701 105,182
National Fuel Gas Co. 2,948 83,546
Vectren Corp. 2,720 72,896
Sierra Pacific Resources*+ 4,203 44,132
Aquila, Inc.* 8,643 31,893
---------------
TOTAL MULTI-UTILITIES 748,515
---------------
GAS UTILITIES 0.7%
AGL Resources, Inc. 2,683 89,183
WGL Holdings, Inc. 1,737 53,569
---------------
TOTAL GAS UTILITIES 142,752
---------------
TOTAL UTILITIES 2,145,018
---------------
INDUSTRIALS 8.6%
COMMERCIAL SERVICES & SUPPLIES 3.1%
Republic Services, Inc. 5,392 180,848
Manpower, Inc. 3,225 155,767
Laureate Education, Inc.* 1,730 76,276
Adesa, Inc. 3,276 69,517
DeVry, Inc.* 2,520 43,747
Banta Corp. 887 39,702
Kelly Services, Inc. 1,264 38,148
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 604,005
---------------
MACHINERY 2.1%
SPX Corp.+ 2,687 107,641
AGCO Corp.*+ 3,227 70,639
Kennametal, Inc. 1,356 67,488
Trinity Industries, Inc. 1,696 57,800
Flowserve Corp.* 1,974 54,364
Tecumseh Products Co. -- Class A 654 31,261
Federal Signal Corp. 1,723 30,428
---------------
TOTAL MACHINERY 419,621
---------------
CONSTRUCTION & ENGINEERING 0.9%
Jacobs Engineering Group, Inc.* 2,010 96,058
Granite Construction, Inc. 1,489 39,607
Quanta Services, Inc.* 4,192 33,536
---------------
TOTAL CONSTRUCTION & ENGINEERING 169,201
---------------
ROAD & RAIL 0.6%
Werner Enterprises, Inc. 2,825 63,958
Swift Transportation Co., Inc.* 2,626 56,407
---------------
TOTAL ROAD & RAIL 120,365
---------------
INDUSTRIAL CONGLOMERATES 0.4%
Teleflex, Inc. 1,446 75,105
---------------
TOTAL INDUSTRIAL CONGLOMERATES 75,105
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 0.3%
Thomas & Betts Corp.* 2,111 $ 64,913
---------------
TOTAL ELECTRICAL EQUIPMENT 64,913
---------------
MARINE 0.3%
Alexander & Baldwin, Inc. 1,526 64,733
---------------
TOTAL MARINE 64,733
---------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
United Rentals, Inc.* 2,786 52,655
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 52,655
---------------
BUILDING PRODUCTS 0.3%
York International Corp. 1,486 51,327
---------------
TOTAL BUILDING PRODUCTS 51,327
---------------
AIRLINES 0.2%
Alaska Air Group, Inc.*+ 953 31,916
---------------
TOTAL AIRLINES 31,916
---------------
AEROSPACE & DEFENSE 0.1%
Sequa Corp. -- Class A* 366 22,381
---------------
TOTAL AEROSPACE & DEFENSE 22,381
---------------
TOTAL INDUSTRIALS 1,676,222
---------------
ENERGY 7.1%
ENERGY EQUIPMENT & SERVICES 4.2%
Weatherford International Ltd.* 4,857 249,164
ENSCO International, Inc.+ 5,406 171,586
Cooper Cameron Corp.*+ 1,966 105,790
Pride International, Inc.*+ 4,877 100,174
Tidewater, Inc.+ 2,173 77,381
Helmerich & Payne, Inc. 1,804 61,408
Hanover Compressor Co.*+ 2,794 39,479
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 804,982
---------------
OIL & GAS 2.9%
Pioneer Natural Resources Co. 5,216 183,082
Newfield Exploration Co.* 2,227 131,504
Pogo Producing Co. 2,301 111,576
Overseas Shipholding Group, Inc.+ 1,410 77,832
Forest Oil Corp.*+ 2,120 67,246
---------------
TOTAL OIL & GAS 571,240
---------------
TOTAL ENERGY 1,376,222
---------------
MATERIALS 6.5%
CHEMICALS 3.9%
Valspar Corp.+ 1,840 92,018
Lubrizol Corp. 2,388 88,022
Scotts Co. -- Class A* 1,180 86,754
Cabot Corp. 2,202 85,173
RPM International, Inc. 4,163 81,845
Cytec Industries, Inc. 1,416 72,811
FMC Corp.* 1,320 63,756
See Notes to Financial Statements.
98 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Albemarle Corp. 1,488 $ 57,600
Minerals Technologies, Inc. 733 48,891
Sensient Technologies Corp. 1,682 40,351
Ferro Corp. 1,496 34,692
---------------
TOTAL CHEMICALS 751,913
---------------
PAPER & FOREST PRODUCTS 0.8%
Bowater, Inc.+ 1,987 87,368
Potlatch Corp.+ 1,063 53,767
Glatfelter 1,567 23,944
---------------
TOTAL PAPER & FOREST PRODUCTS 165,079
---------------
CONTAINERS & PACKAGING 0.7%
Sonoco Products Co. 3,516 104,249
Longview Fibre Co. 1,826 33,124
---------------
TOTAL CONTAINERS & PACKAGING 137,373
---------------
METALS & MINING 0.6%
Steel Dynamics, Inc. 1,610 60,987
Worthington Industries, Inc. 2,840 55,607
---------------
TOTAL METALS & MINING 116,594
---------------
CONSTRUCTION MATERIALS 0.5%
Martin Marietta Materials, Inc. 1,714 91,973
---------------
TOTAL CONSTRUCTION MATERIALS 91,973
---------------
TOTAL MATERIALS 1,262,932
---------------
HEALTH CARE 5.7%
HEALTH CARE PROVIDERS & SERVICES 3.6%
Pacificare Health Systems, Inc.* 3,012 170,238
Omnicare, Inc. 3,730 129,133
Health Net, Inc.* 3,971 114,643
Triad Hospitals, Inc.*+ 2,748 102,253
Universal Health Services, Inc. --
Class B 2,088 92,916
Community Health Systems, Inc.* 3,123 87,069
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 696,252
---------------
BIOTECHNOLOGY 1.3%
Millennium Pharmaceuticals, Inc.* 10,944 132,641
Invitrogen Corp.*+ 1,831 122,915
---------------
TOTAL BIOTECHNOLOGY 255,556
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.6%
Steris Corp.* 2,467 58,517
Varian, Inc.* 1,240 50,853
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 109,370
---------------
PHARMACEUTICALS 0.2%
Perrigo Co. 2,580 44,556
---------------
TOTAL PHARMACEUTICALS 44,556
---------------
TOTAL HEALTH CARE 1,105,734
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER STAPLES 5.4%
FOOD PRODUCTS 3.2%
Tyson Foods, Inc. -- Class A 12,621 $ 232,226
Dean Foods Co.* 5,327 175,525
Smithfield Foods, Inc.* 3,970 117,472
J.M. Smucker Co. 2,086 98,188
---------------
TOTAL FOOD PRODUCTS 623,411
---------------
BEVERAGES 1.5%
Constellation Brands, Inc. --
Class A* 3,856 179,343
PepsiAmericas, Inc. 4,950 105,138
---------------
TOTAL BEVERAGES 284,481
---------------
FOOD & DRUG RETAILING 0.5%
BJ's Wholesale Club, Inc.* 2,485 72,388
Ruddick Corp. 1,670 36,222
---------------
TOTAL FOOD & DRUG RETAILING 108,610
---------------
TOBACCO 0.2%
Universal Corp./Richmond VA 912 43,630
---------------
TOTAL TOBACCO 43,630
---------------
TOTAL CONSUMER STAPLES 1,060,132
---------------
TELECOMMUNICATION SERVICES 0.8%
WIRELESS TELECOMMUNICATION SERVICES 0.8%
Telephone & Data Systems, Inc.+ 2,049 157,671
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 157,671
---------------
TOTAL TELECOMMUNICATION SERVICES 157,671
---------------
TOTAL COMMON STOCKS
(Cost $17,923,694) 19,384,917
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 99
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 113,768 $ 113,768
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $113,768) 113,768
---------------
SECURITIES LENDING COLLATERAL 7.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,424,576 1,424,576
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,424,576) 1,424,576
---------------
TOTAL INVESTMENTS 107.4%
(Cost $19,462,038) $ 20,923,261
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (7.4)% $ (1,444,709)
===============
NET ASSETS - 100.0% $ 19,478,552
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
100 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
FINANCIALS 38.6%
BANKS 11.9%
Bank of America Corp. 7,923 $ 372,302
Wells Fargo & Co. 3,315 206,027
Wachovia Corp.+ 3,148 165,585
U.S. Bancorp 3,661 114,662
SunTrust Banks, Inc. 727 53,711
Fifth Third Bancorp 1,104 52,197
National City Corp. 1,324 49,716
BB&T Corp. 1,081 45,456
Regions Financial Corp.+ 908 32,316
PNC Financial Services Group, Inc. 551 31,649
KeyCorp 800 27,120
North Fork Bancorporation, Inc. 920 26,542
M&T Bank Corp. 225 24,264
Comerica, Inc.+ 330 20,137
Marshall & Ilsley Corp. 436 19,271
AmSouth Bancorp+ 696 18,026
Synovus Financial Corp. 608 17,377
Compass Bancshares, Inc. 240 11,681
Zions Bancorporation 168 11,429
Huntington Bancshares, Inc. 452 11,201
First Horizon National Corp.+ 245 10,562
---------------
TOTAL BANKS 1,321,231
---------------
INSURANCE 8.5%
American International Group, Inc.+ 5,111 335,639
Allstate Corp. 1,347 69,667
MetLife, Inc. 1,456 58,983
Prudential Financial, Inc. 1,008 55,400
St. Paul Travelers Cos., Inc. 1,309 48,525
Hartford Financial Services Group,
Inc. 580 40,200
AFLAC, Inc. 992 39,521
Marsh & McLennan Cos., Inc. 1,030 33,887
Progressive Corp. 391 33,172
Chubb Corp.+ 376 28,914
Loews Corp. 367 25,800
ACE Ltd. 562 24,026
XL Capital Ltd. 268 20,810
MBIA, Inc. 274 17,339
Ambac Financial Group, Inc. 210 17,247
Lincoln National Corp. 345 16,105
Aon Corp. 622 14,841
Cincinnati Financial Corp. 331 14,650
Jefferson-Pilot Corp. 270 14,029
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SAFECO Corp.+ 240 $ 12,538
Torchmark Corp. 203 11,599
UnumProvident Corp. 584 10,477
---------------
TOTAL INSURANCE 943,369
---------------
DIVERSIFIED FINANCIALS 7.2%
Citigroup, Inc. 10,175 490,231
J.P. Morgan Chase & Co. 6,991 272,719
Principal Financial Group, Inc. 606 24,810
CIT Group, Inc. 410 18,786
---------------
TOTAL DIVERSIFIED FINANCIALS 806,546
---------------
CAPITAL MARKETS 5.4%
Morgan Stanley+ 2,147 119,202
Merrill Lynch & Co., Inc. 1,821 108,841
Goldman Sachs Group, Inc.+ 952 99,046
Bank of New York Co., Inc. 1,521 50,832
Lehman Brothers Holdings, Inc. 503 44,002
Franklin Resources, Inc. 492 34,268
State Street Corp. 651 31,977
Charles Schwab Corp. 2,643 31,610
Mellon Financial Corp. 833 25,915
Bear Stearns Cos., Inc. 207 21,178
Northern Trust Corp. 424 20,598
E*Trade Financial Corp.*+ 728 10,884
Janus Capital Group, Inc. 462 7,766
---------------
TOTAL CAPITAL MARKETS 606,119
---------------
THRIFTS & MORTGAGE FINANCE 3.7%
Fannie Mae 1,900 135,299
Freddie Mac 1,354 99,790
Washington Mutual, Inc. 1,707 72,172
Countrywide Financial Corp. 1,138 42,117
Golden West Financial Corp. 602 36,975
Sovereign Bancorp, Inc. 677 15,266
MGIC Investment Corp. 187 12,886
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 414,505
---------------
CONSUMER FINANCE 1.1%
MBNA Corp. 2,502 70,531
Capital One Financial Corp.+ 472 39,747
Providian Financial Corp.* 570 9,388
---------------
TOTAL CONSUMER FINANCE 119,666
---------------
REAL ESTATE 0.8%
Equity Office Properties Trust 794 23,121
Equity Residential 560 20,261
ProLogis 358 15,512
Archstone-Smith Trust 380 14,554
Plum Creek Timber (REIT) Co., Inc. 360 13,838
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 101
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Apartment Investment & Management
Co. -- Class A 177 $ 6,822
---------------
TOTAL REAL ESTATE 94,108
---------------
TOTAL FINANCIALS 4,305,544
---------------
CONSUMER DISCRETIONARY 13.3%
MEDIA 7.0%
Time Warner, Inc.* 8,982 174,610
Comcast Corp. -- Class A* 4,352 144,835
Viacom, Inc. -- Class B 3,347 121,797
Walt Disney Co.+ 4,003 111,284
News Corp. -- Class A 5,120 95,539
Gannett Co., Inc. 492 40,197
Clear Channel Communications, Inc. 1,125 37,676
Tribune Co. 624 26,295
Univision Communications, Inc. --
Class A* 630 18,440
Interpublic Group of Cos., Inc.* 828 11,095
---------------
TOTAL MEDIA 781,768
---------------
HOTELS, RESTAURANTS & LEISURE 1.9%
McDonald's Corp. 2,462 78,932
Carnival Corp.+ 1,242 71,576
Starwood Hotels & Resorts Worldwide,
Inc.+ 402 23,477
Hilton Hotels Corp. 755 17,169
Wendy's International, Inc. 216 8,480
Darden Restaurants, Inc. 299 8,294
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 207,928
---------------
MULTILINE RETAIL 1.2%
Kohl's Corp.*+ 670 32,944
JC Penney Holding Co., Inc.+ 561 23,225
Sears Roebuck and Co.+ 402 20,514
Federated Department Stores, Inc. 327 18,897
May Department Stores Co. 569 16,729
Nordstrom, Inc. 274 12,804
Dillard's, Inc./AR -- Class A+ 157 4,219
Big Lots, Inc.* 212 2,571
---------------
TOTAL MULTILINE RETAIL 131,903
---------------
AUTOMOBILES 0.9%
Ford Motor Co. 3,588 52,529
General Motors Corp.+ 1,104 44,226
---------------
TOTAL AUTOMOBILES 96,755
---------------
SPECIALTY RETAIL 0.6%
Limited Brands, Inc. 797 18,347
Office Depot, Inc.* 610 10,590
AutoNation, Inc.*+ 518 9,951
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Tiffany & Co.+ 288 $ 9,207
Toys `R' Us, Inc.* 418 8,556
Circuit City Stores, Inc. 384 6,006
OfficeMax, Inc. 176 5,523
---------------
TOTAL SPECIALTY RETAIL 68,180
---------------
HOUSEHOLD DURABLES 0.6%
Pulte Homes, Inc. 247 15,759
Centex Corp.+ 239 14,240
Leggett & Platt, Inc.+ 378 10,747
KB Home 93 9,709
Whirlpool Corp. 121 8,374
Snap-On, Inc. 104 3,573
---------------
TOTAL HOUSEHOLD DURABLES 62,402
---------------
AUTO COMPONENTS 0.4%
Johnson Controls, Inc. 376 23,853
Delphi Corp.+ 1,100 9,922
Dana Corp. 298 5,164
Cooper Tire & Rubber Co. 139 2,996
Visteon Corp. 250 2,443
---------------
TOTAL AUTO COMPONENTS 44,378
---------------
TEXTILES & APPAREL 0.3%
VF Corp. 222 12,294
Liz Claiborne, Inc. 213 8,991
Jones Apparel Group, Inc. 237 8,667
Reebok International Ltd.+ 106 4,664
---------------
TOTAL TEXTILES & APPAREL 34,616
---------------
LEISURE EQUIPMENT & PRODUCTS 0.3%
Eastman Kodak Co.+ 565 18,221
Brunswick Corp. 188 9,306
Hasbro, Inc. 348 6,744
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 34,271
---------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 342 15,069
---------------
TOTAL DISTRIBUTORS 15,069
---------------
TOTAL CONSUMER DISCRETIONARY 1,477,270
---------------
INFORMATION TECHNOLOGY 7.9%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.2%
Texas Instruments, Inc.+ 3,390 83,462
Applied Materials, Inc.* 3,330 56,943
KLA-Tencor Corp.* 380 17,700
Advanced Micro Devices, Inc.* 758 16,691
Micron Technology, Inc.*+ 1,206 14,894
Freescale Semiconductor, Inc. --
Class B* 767 14,082
National Semiconductor Corp. 700 12,565
See Notes to Financial Statements.
102 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Novellus Systems, Inc.* 277 $ 7,726
Nvidia Corp.* 324 7,633
Teradyne, Inc.*+ 380 6,487
LSI Logic Corp.* 754 4,132
Applied Micro Circuits Corp.* 609 2,564
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 244,879
---------------
COMPUTERS & PERIPHERALS 2.2%
Hewlett-Packard Co. 5,925 124,247
EMC Corp./MA* 4,698 69,859
Sun Microsystems, Inc.* 6,591 35,460
NCR Corp.* 188 13,015
---------------
TOTAL COMPUTERS & PERIPHERALS 242,581
---------------
COMMUNICATIONS EQUIPMENT 1.2%
Motorola, Inc.+ 4,776 82,147
Scientific-Atlanta, Inc. 302 9,969
Comverse Technology, Inc.* 391 9,560
JDS Uniphase Corp.*+ 2,830 8,971
Tellabs, Inc.* 905 7,774
Andrew Corp.* 319 4,348
ADC Telecommunications, Inc.* 1,585 4,248
CIENA Corp.* 1,122 3,748
---------------
TOTAL COMMUNICATIONS EQUIPMENT 130,765
---------------
IT CONSULTING & SERVICES 1.0%
Electronic Data Systems Corp. 1,005 23,216
Computer Sciences Corp.*+ 374 21,082
SunGard Data Systems, Inc.* 569 16,120
Fiserv, Inc.* 386 15,513
Affiliated Computer Services, Inc. --
Class A* 256 15,409
Unisys Corp.* 663 6,749
Sabre Holdings Corp. 269 5,961
Convergys Corp.* 273 4,092
---------------
TOTAL IT CONSULTING & SERVICES 108,142
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.6%
Agilent Technologies, Inc.* 950 22,895
Molex, Inc. 366 10,980
Jabil Circuit, Inc.* 396 10,129
Solectron Corp.*+ 1,900 10,127
Sanmina-SCI Corp.* 1,023 8,665
Tektronix, Inc. 171 5,166
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 67,962
---------------
SOFTWARE 0.4%
Veritas Software Corp.* 829 23,668
Siebel Systems, Inc.* 1,001 10,510
BMC Software, Inc.* 436 8,110
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Novell, Inc.* 740 $ 4,995
Compuware Corp.* 758 4,904
---------------
TOTAL SOFTWARE 52,187
---------------
OFFICE ELECTRONICS 0.3%
Xerox Corp.* 1,867 31,758
---------------
TOTAL OFFICE ELECTRONICS 31,758
---------------
TOTAL INFORMATION TECHNOLOGY 878,274
---------------
INDUSTRIALS 7.9%
AEROSPACE & DEFENSE 1.8%
Honeywell International, Inc. 1,684 59,630
General Dynamics Corp. 394 41,212
Northrop Grumman Corp. 723 39,302
Raytheon Co. 885 34,365
L-3 Communications Holdings, Inc. 230 16,845
Goodrich Corp. 229 7,475
---------------
TOTAL AEROSPACE & DEFENSE 198,829
---------------
INDUSTRIAL CONGLOMERATES 1.5%
Tyco International Ltd.+ 3,940 140,815
Textron, Inc. 267 19,705
---------------
TOTAL INDUSTRIAL CONGLOMERATES 160,520
---------------
MACHINERY 1.3%
Deere & Co. 491 36,531
Ingersoll-Rand Co. -- Class A 341 27,382
Eaton Corp. 289 20,912
Parker Hannifin Corp. 231 17,496
Dover Corp. 393 16,483
ITT Industries, Inc. 176 14,863
Cummins, Inc. 90 7,541
Pall Corp. 236 6,832
---------------
TOTAL MACHINERY 148,040
---------------
ROAD & RAIL 1.0%
Burlington Northern Santa Fe Corp. 734 34,726
Union Pacific Corp. 500 33,625
Norfolk Southern Corp. 773 27,975
CSX Corp. 419 16,793
---------------
TOTAL ROAD & RAIL 113,119
---------------
COMMERCIAL SERVICES & SUPPLIES 0.9%
Cendant Corp. 2,061 48,186
Waste Management, Inc. 1,124 33,652
RR Donnelley & Sons Co. 431 15,210
Allied Waste Industries, Inc.*+ 624 5,791
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 102,839
---------------
AIR FREIGHT & COURIERS 0.6%
FedEx Corp.+ 587 57,814
Ryder System, Inc. 121 5,780
---------------
TOTAL AIR FREIGHT & COURIERS 63,594
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 103
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BUILDING PRODUCTS 0.3%
Masco Corp.+ 876 $ 32,000
---------------
TOTAL BUILDING PRODUCTS 32,000
---------------
AIRLINES 0.2%
Southwest Airlines Co. 1,528 24,876
---------------
TOTAL AIRLINES 24,876
---------------
ELECTRICAL EQUIPMENT 0.2%
Cooper Industries Ltd. -- Class A 176 11,949
American Power Conversion Corp.+ 375 8,025
Power-One, Inc.* 158 1,409
---------------
TOTAL ELECTRICAL EQUIPMENT 21,383
---------------
TRADING COMPANIES &
DISTRIBUTORS 0.1%
W.W. Grainger, Inc. 174 11,592
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 11,592
---------------
TOTAL INDUSTRIALS 876,792
---------------
HEALTH CARE 7.7%
PHARMACEUTICALS 3.7%
Pfizer, Inc. 14,770 397,165
Mylan Laboratories, Inc. 530 9,370
Watson Pharmaceuticals, Inc.* 211 6,923
King Pharmaceuticals, Inc.*+ 464 5,754
---------------
TOTAL PHARMACEUTICALS 419,212
---------------
HEALTH CARE PROVIDERS & SERVICES 3.1%
WellPoint, Inc.* 582 66,930
Cardinal Health, Inc. 850 49,427
Caremark Rx, Inc.*+ 894 35,250
Aetna, Inc. 281 35,055
HCA, Inc. 830 33,167
Medco Health Solutions, Inc.*+ 531 22,089
CIGNA Corp. 261 21,290
McKesson Corp. 581 18,278
Laboratory Corporation of America
Holdings* 270 13,451
AmerisourceBergen Corp. 204 11,971
Health Management Associates,
Inc. -- Class A+ 475 10,792
Tenet Healthcare Corp.* 911 10,003
Humana, Inc.* 317 9,412
Manor Care, Inc. 162 5,740
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 342,855
---------------
BIOTECHNOLOGY 0.6%
Biogen Idec, Inc.*+ 649 43,230
Chiron Corp.* 371 12,366
Applera Corp. - Applied Biosystems
Group 387 8,092
---------------
TOTAL BIOTECHNOLOGY 63,688
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.3%
Fisher Scientific International, Inc.*+ 221 $ 13,786
Thermo Electron Corp.* 313 9,449
Bausch & Lomb, Inc. 99 6,382
PerkinElmer, Inc. 248 5,578
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 35,195
---------------
TOTAL HEALTH CARE 860,950
---------------
ENERGY 6.8%
OIL & GAS 6.3%
ChevronTexaco Corp.+ 4,157 218,284
ConocoPhillips 1,356 117,742
Occidental Petroleum Corp. 772 45,054
Devon Energy Corp. 949 36,935
Burlington Resources, Inc. 767 33,365
Apache Corp. 641 32,415
Anadarko Petroleum Corp. 483 31,303
Marathon Oil Corp. 680 25,575
Valero Energy Corp. 508 23,063
Unocal Corp. 514 22,225
Williams Cos., Inc. 1,096 17,854
Kerr-McGee Corp. 299 17,279
Kinder Morgan, Inc. 235 17,186
EOG Resources, Inc.+ 228 16,270
Amerada Hess Corp.+ 173 14,252
El Paso Corp. 1,260 13,104
Sunoco, Inc. 140 11,439
Ashland, Inc. 135 7,881
---------------
TOTAL OIL & GAS 701,226
---------------
ENERGY EQUIPMENT & SERVICES 0.5%
Transocean, Inc.*+ 627 26,579
Nabors Industries Ltd.*+ 298 15,284
Noble Corp.* 270 13,430
Rowan Cos., Inc.* 208 5,387
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 60,680
---------------
TOTAL ENERGY 761,906
---------------
TELECOMMUNICATION SERVICES 5.8%
DIVERSIFIED TELECOMMUNICATION SERVICES 5.8%
Verizon Communications, Inc.+ 5,434 220,131
SBC Communications, Inc. 6,499 167,479
BellSouth Corp. 3,589 99,738
Sprint Corp. 2,880 71,568
Alltel Corp. 595 34,962
AT&T Corp.+ 1,556 29,657
CenturyTel, Inc. 269 9,542
Citizens Communications Co. 655 9,033
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 642,110
---------------
TOTAL TELECOMMUNICATION SERVICES 642,110
---------------
See Notes to Financial Statements.
104 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
UTILITIES 5.3%
ELECTRIC UTILITIES 3.6%
Exelon Corp. 1,298 $ 57,203
Southern Co. 1,454 48,738
Entergy Corp. 443 29,942
FPL Group, Inc.+ 366 27,358
American Electric Power Co., Inc. 776 26,648
PG&E Corp.*+ 788 26,225
FirstEnergy Corp. 646 25,523
Progress Energy, Inc. 488 22,077
Consolidated Edison, Inc. 473 20,694
Edison International 642 20,563
PPL Corp. 371 19,767
Ameren Corp.+ 378 18,953
Cinergy Corp.+ 357 14,862
DTE Energy Co. 341 14,707
Xcel Energy, Inc. 790 14,378
Pinnacle West Capital Corp. 175 7,772
TECO Energy, Inc. 390 5,983
Allegheny Energy, Inc.*+ 260 5,125
---------------
TOTAL ELECTRIC UTILITIES 406,518
---------------
MULTI-UTILITIES 1.4%
Duke Energy Corp. 1,873 47,443
Dominion Resources, Inc./VA+ 652 44,167
Public Service Enterprise Group, Inc. 459 23,762
Sempra Energy 453 16,616
Constellation Energy Group, Inc. 346 15,124
Calpine Corp.* 1,047 4,125
CMS Energy Corp.* 386 4,034
Dynegy, Inc. -- Class A* 741 3,423
---------------
TOTAL MULTI-UTILITIES 158,694
---------------
GAS UTILITIES 0.3%
KeySpan Corp.+ 318 12,545
NiSource, Inc. 534 12,164
Nicor, Inc. 91 3,362
Peoples Energy Corp. 65 2,857
---------------
TOTAL GAS UTILITIES 30,928
---------------
TOTAL UTILITIES 596,140
---------------
MATERIALS 3.5%
METALS & MINING 1.3%
Alcoa, Inc. 1,711 53,759
Newmont Mining Corp.+ 870 38,637
Phelps Dodge Corp.+ 187 18,498
Nucor Corp.+ 316 16,539
United States Steel Corp. 215 11,019
---------------
TOTAL METALS & MINING 138,452
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CHEMICALS 1.0%
Monsanto Co. 516 $ 28,664
Air Products & Chemicals, Inc. 441 25,565
PPG Industries, Inc. 339 23,106
Rohm & Haas Co. 438 19,373
Eastman Chemical Co. 152 8,775
Engelhard Corp. 240 7,361
Great Lakes Chemical Corp. 97 2,763
---------------
TOTAL CHEMICALS 115,607
---------------
PAPER & FOREST PRODUCTS 1.0%
International Paper Co. 950 39,900
Weyerhaeuser Co. 463 31,123
Georgia-Pacific Corp.+ 496 18,590
MeadWestvaco Corp. 397 13,454
Louisiana-Pacific Corp. 221 5,910
---------------
TOTAL PAPER & FOREST PRODUCTS 108,977
---------------
CONTAINERS & PACKAGING 0.1%
Temple-Inland, Inc. 101 6,909
Bemis Co. 214 6,225
---------------
TOTAL CONTAINERS & PACKAGING 13,134
---------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co. 195 10,649
---------------
TOTAL CONSTRUCTION MATERIALS 10,649
---------------
TOTAL MATERIALS 386,819
---------------
CONSUMER STAPLES 2.7%
FOOD & DRUG RETAILING 1.3%
Costco Wholesale Corp.+ 920 44,537
CVS Corp. 783 35,290
Kroger Co.*+ 1,454 25,503
Safeway, Inc.* 883 17,430
Albertson's, Inc.+ 721 17,218
Supervalu, Inc. 255 8,803
---------------
TOTAL FOOD & DRUG RETAILING 148,781
---------------
FOOD PRODUCTS 0.9%
General Mills, Inc.+ 713 35,443
ConAgra Foods, Inc. 1,010 29,745
Archer-Daniels-Midland Co. 1,283 28,624
---------------
TOTAL FOOD PRODUCTS 93,812
---------------
BEVERAGES 0.2%
Coca-Cola Enterprises, Inc. 916 19,099
Adolph Coors Co. -- Class B 74 5,599
---------------
TOTAL BEVERAGES 24,698
---------------
TOBACCO 0.2%
Reynolds American, Inc.+ 294 23,108
---------------
TOTAL TOBACCO 23,108
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 105
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PERSONAL PRODUCTS 0.1%
Alberto-Culver Co. -- Class B 174 $ 8,451
---------------
TOTAL PERSONAL PRODUCTS 8,451
---------------
TOTAL CONSUMER STAPLES 298,850
---------------
TOTAL COMMON STOCKS
(Cost $9,863,546) 11,084,655
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 54,448 54,448
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $54,448) 54,448
---------------
SECURITIES LENDING COLLATERAL 8.3%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 931,373 931,373
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $931,373) 931,373
---------------
TOTAL INVESTMENTS 108.3%
(Cost $10,849,367) $ 12,070,476
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (8.3)% $ (926,597)
===============
NET ASSETS - 100.0% $ 11,143,879
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
106 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
CONSUMER DISCRETIONARY 19.8%
HOTELS RESTAURANTS & LEISURE 4.9%
Sonic Corp.* 6,859 $ 209,199
P.F. Chang's China Bistro, Inc.* 2,951 166,289
CEC Entertainment, Inc.* 4,145 165,676
Argosy Gaming Co.* 3,359 156,865
Panera Bread Co. -- Class A*+ 3,451 139,144
Shuffle Master, Inc.*+ 2,648 124,721
Rare Hospitality International, Inc.* 3,886 123,808
WMS Industries, Inc.*+ 3,480 116,719
IHOP Corp. 2,270 95,090
Triarc Cos. -- Class B 7,357 90,197
Papa John's International, Inc.* 2,036 70,120
Bally Total Fitness Holding Corp.* 3,890 16,494
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,474,322
---------------
SPECIALTY RETAIL 4.6%
Tractor Supply Co.* 4,363 162,347
Guitar Center, Inc.*+ 2,883 151,905
Aaron Rents, Inc. 5,675 141,875
Electronics Boutique Holdings
Corp.* 2,768 118,858
Children's Place Retail Stores, Inc.* 3,074 113,830
Too, Inc.* 3,940 96,373
HOT Topic, Inc.* 5,302 91,141
Stein Mart, Inc.* 4,842 82,605
Cost Plus, Inc.* 2,495 80,164
Genesco, Inc.* 2,514 78,286
Select Comfort Corp.* 4,215 75,617
Christopher & Banks Corp.+ 4,072 75,129
Hibbett Sporting Goods, Inc.* 2,672 71,102
Cato Corp. -- Class A 2,360 68,015
---------------
TOTAL SPECIALTY RETAIL 1,407,247
---------------
HOUSEHOLD DURABLES 3.4%
NVR, Inc.*+ 678 521,653
Meritage Homes Corp.* 1,560 175,812
Ethan Allen Interiors, Inc. 4,096 163,922
Champion Enterprises, Inc.* 8,174 96,617
Interface, Inc. -- Class A* 5,940 59,222
---------------
TOTAL HOUSEHOLD DURABLES 1,017,226
---------------
TEXTILES & APPAREL 2.8%
Fossil, Inc.* 8,115 208,069
Quiksilver, Inc.* 6,489 193,307
Wolverine World Wide, Inc. 4,358 136,928
K-Swiss, Inc. -- Class A 3,904 113,684
Phillips-Van Heusen Corp. 3,530 95,310
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Oxford Industries, Inc. 2,045 $ 84,459
OshKosh B'Gosh, Inc. -- Class A 1,257 26,900
---------------
TOTAL TEXTILES & APPAREL 858,657
---------------
LEISURE EQUIPMENT & PRODUCTS 2.2%
Polaris Industries, Inc. 4,881 332,006
SCP Pool Corp. 5,950 189,805
Nautilus Group, Inc. 3,750 90,637
Arctic Cat, Inc. 2,325 61,659
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 674,107
---------------
MEDIA 1.0%
Arbitron, Inc.* 3,529 138,267
Advo, Inc. 3,488 124,347
Thomas Nelson, Inc. 1,797 40,612
---------------
TOTAL MEDIA 303,226
---------------
AUTOMOBILES 0.8%
Winnebago Industries, Inc. 3,832 149,678
Fleetwood Enterprises, Inc.*+ 6,325 85,134
---------------
TOTAL AUTOMOBILES 234,812
---------------
AUTO COMPONENTS 0.1%
Midas, Inc.* 1,936 38,720
---------------
TOTAL AUTO COMPONENTS 38,720
---------------
TOTAL CONSUMER DISCRETIONARY 6,008,317
---------------
INFORMATION TECHNOLOGY 17.8%
SOFTWARE 6.2%
Factset Research Systems, Inc.+ 3,557 207,871
Hyperion Solutions Corp.* 4,446 207,273
Kronos, Inc./MA* 3,548 181,409
Take-Two Interactive Software, Inc.* 5,150 179,169
Micros Systems, Inc.* 2,106 164,394
Internet Security Systems, Inc.* 5,230 121,598
Filenet Corp.* 4,504 116,023
Ansys, Inc.* 3,565 114,294
Altiris, Inc.* 3,070 108,770
Serena Software, Inc.*+ 4,972 107,594
Progress Software Corp.* 4,118 96,155
Manhattan Associates, Inc.*+ 3,430 81,908
Sonic Solutions, Inc.*+ 2,672 59,960
Talx Corp. 1,682 43,379
Catapult Communications Corp.* 1,784 43,101
Napster, Inc.*+ 3,970 37,318
---------------
TOTAL SOFTWARE 1,870,216
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.5%
Flir Systems, Inc.* 3,904 249,036
Trimble Navigation Ltd.* 5,910 195,266
Cognex Corp. 5,259 146,726
Dionex Corp.* 2,379 134,818
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 107
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Global Imaging Systems, Inc.* 2,646 $ 104,517
Scansource, Inc.* 1,541 95,789
Rogers Corp.* 2,045 88,139
Littelfuse, Inc.* 2,542 86,835
MTS Systems Corp. 2,330 78,777
BEI Technologies, Inc. 1,810 55,893
Daktronics, Inc.* 2,153 53,588
Keithley Instruments, Inc. 1,975 38,908
X-Rite, Inc. 2,375 38,024
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,366,316
---------------
IT CONSULTING & SERVICES 2.6%
Global Payments, Inc.+ 4,383 256,581
CACI International, Inc. -- Class A* 3,330 226,873
eFunds Corp.* 5,570 133,736
Mantech International Corp. --
Class A* 3,690 87,600
Startek, Inc. 1,775 50,499
Carreker Corp.* 2,832 24,355
---------------
TOTAL IT CONSULTING & SERVICES 779,644
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.3%
Microsemi Corp.* 6,809 118,204
ATMI, Inc.* 3,582 80,703
Power Integrations, Inc.* 3,534 69,903
Helix Technology Corp. 2,980 51,822
Kulicke & Soffa Industries, Inc.* 5,818 50,151
Supertex, Inc.* 1,590 34,503
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 405,286
---------------
INTERNET SOFTWARE & SERVICES 1.2%
Websense, Inc.* 2,660 134,915
WebEx Communications, Inc.*+ 5,100 121,278
j2 Global Communications, Inc.* 2,679 92,425
Zix Corp.*+ 3,672 18,911
---------------
TOTAL INTERNET SOFTWARE & SERVICES 367,529
---------------
COMPUTERS & PERIPHERALS 1.1%
Avid Technology, Inc.* 3,870 238,972
Synaptics, Inc.* 2,917 89,202
---------------
TOTAL COMPUTERS & PERIPHERALS 328,174
---------------
COMMUNICATIONS EQUIPMENT 0.9%
Inter-Tel, Inc. 2,953 80,853
ViaSat, Inc.* 3,051 74,048
Harmonic, Inc.* 8,241 68,730
Digi International, Inc.* 2,470 42,459
---------------
TOTAL COMMUNICATIONS EQUIPMENT 266,090
---------------
TOTAL INFORMATION TECHNOLOGY 5,383,255
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INDUSTRIALS 16.8%
MACHINERY 4.9%
Oshkosh Truck Corp. 4,080 $ 278,990
IDEX Corp. 5,777 233,969
Toro Co. 2,602 211,673
Clarcor, Inc. 2,917 159,764
Manitowoc Co., Inc. 3,361 126,542
CUNO, Inc.* 2,058 122,245
Kaydon Corp.+ 3,216 106,192
JLG Industries, Inc. 5,080 99,720
Wabash National Corp.*+ 3,464 93,286
Lindsay Manufacturing Co. 1,257 32,531
Milacron, Inc.* 5,542 18,787
---------------
TOTAL MACHINERY 1,483,699
---------------
AEROSPACE & DEFENSE 2.9%
Engineered Support Systems, Inc.+ 3,038 179,910
Armor Holdings, Inc.* 3,786 178,018
Gencorp, Inc. 6,040 112,163
Teledyne Technologies, Inc.* 3,721 109,509
Ceradyne, Inc.* 1,850 105,839
EDO Corp. 2,280 72,390
Mercury Computer Systems, Inc.*+ 2,403 71,321
Applied Signal Technology, Inc. 1,277 45,014
---------------
TOTAL AEROSPACE & DEFENSE 874,164
---------------
COMMERCIAL SERVICES & SUPPLIES 2.6%
Brady Corp. -- Class A 2,759 172,631
John H. Harland Co. 3,168 114,365
Watson Wyatt & Co., Holdings 3,697 99,634
Labor Ready, Inc.* 4,787 80,996
Coinstar, Inc.* 2,807 75,312
Heidrick & Struggles International,
Inc.* 2,186 74,914
Pre-Paid Legal Services, Inc.+ 1,892 71,044
Vertrue, Inc.* 1,135 42,869
Administaff, Inc.* 2,903 36,607
CPI Corp. 826 11,225
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 779,597
---------------
ROAD & RAIL 2.0%
Landstar System, Inc.* 3,453 254,279
Heartland Express, Inc. 8,560 192,343
Knight Transportation, Inc. 6,452 160,010
---------------
TOTAL ROAD & RAIL 606,632
---------------
ELECTRICAL EQUIPMENT 2.0%
Roper Industries, Inc. 4,811 292,365
Acuity Brands, Inc. 4,839 153,880
Baldor Electric Co. 3,760 103,513
Artesyn Technologies, Inc.* 4,480 50,624
---------------
TOTAL ELECTRICAL EQUIPMENT 600,382
---------------
See Notes to Financial Statements.
108 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIR FREIGHT & COURIERS 0.9%
EGL, Inc.*+ 5,857 $ 175,066
Forward Air Corp.* 2,449 109,470
---------------
TOTAL AIR FREIGHT & COURIERS 284,536
---------------
BUILDING PRODUCTS 0.9%
Simpson Manufacturing Co., Inc. 5,438 189,786
ElkCorp 2,267 77,577
---------------
TOTAL BUILDING PRODUCTS 267,363
---------------
MARINE 0.4%
Kirby Corp.* 2,830 125,595
---------------
TOTAL MARINE 125,595
---------------
TRADING COMPANIES & DISTRIBUTORS 0.2%
Lawson Products, Inc. 1,060 53,456
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 53,456
---------------
TOTAL INDUSTRIALS 5,075,424
---------------
HEALTH CARE 16.7%
HEALTH CARE EQUIPMENT & SUPPLIES 9.3%
Cooper Cos., Inc.+ 3,735 263,654
Respironics, Inc.* 4,013 218,147
Idexx Laboratories, Inc.* 3,843 209,789
ResMed, Inc.* 3,865 197,502
Diagnostic Products Corp. 3,322 182,876
Advanced Medical Optics, Inc.*+ 4,187 172,253
Mentor Corp. 4,885 164,820
American Medical Systems ~
Holdings, Inc.* 3,842 160,634
Sybron Dental Specialties, Inc.* 4,435 156,910
Biosite, Inc.*+ 1,980 121,849
Integra LifeSciences Holdings Corp.* 3,286 121,352
Immucor, Inc.* 5,116 120,277
PolyMedica Corp. 3,130 116,718
Haemonetics Corp./MA*+ 2,894 104,792
ArthroCare Corp.* 2,690 86,241
Intermagnetics General Corp.* 2,905 73,816
SurModics, Inc.*+ 1,998 64,955
Hologic, Inc.* 2,341 64,307
Cyberonics, Inc.*+ 2,720 56,358
Merit Medical Systems Inc.* 3,014 46,054
Kensey Nash Corp.* 1,292 44,613
BioLase Technology, Inc.+ 2,778 30,197
Possis Medical, Inc.* 2,070 27,904
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,806,018
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES 5.4%
Pharmaceutical Product
Development, Inc.* 6,454 $ 266,486
Cerner Corp.*+ 4,145 220,390
AMERIGROUP Corp.* 2,850 215,631
Sierra Health Services, Inc.* 3,012 165,991
Centene Corp.* 4,680 132,678
American Healthways, Inc.* 3,757 124,131
AmSurg Corp.* 3,334 98,486
Dendrite International, Inc.* 4,762 92,383
SFBC International, Inc.* 1,800 71,100
LabOne, Inc.* 1,951 62,510
Amedisys, Inc.* 1,872 60,634
Odyssey HealthCare, Inc.* 4,185 57,251
LCA-Vision, Inc. 2,295 53,680
CryoLife, Inc.*+ 2,660 18,806
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,640,157
---------------
PHARMACEUTICALS 1.6%
MGI Pharma, Inc.*+ 8,093 226,685
Medicis Pharmaceutical Corp. --
Class A 6,239 219,051
Noven Pharmaceuticals, Inc.* 2,672 45,584
---------------
TOTAL PHARMACEUTICALS 491,320
---------------
BIOTECHNOLOGY 0.4%
Enzo Biochem, Inc.* 3,698 72,000
Regeneron Pharmaceuticals, Inc.* 6,360 58,576
---------------
TOTAL BIOTECHNOLOGY 130,576
---------------
TOTAL HEALTH CARE 5,068,071
---------------
FINANCIALS 11.0%
BANKS 6.8%
First Bancorp Puerto Rico 4,598 292,019
East-West Bancorp, Inc.+ 5,975 250,711
UCBH Holdings, Inc. 5,187 237,668
Hudson United Bancorp 5,131 202,059
First Midwest Bancorp, Inc./IL 5,288 191,901
United Bankshares, Inc. 4,920 187,698
Southwest Bancorp of Texas, Inc. 7,997 186,250
Wintrust Financial Corp. 2,461 140,179
Republic Bancorp, Inc./MI 8,040 122,851
TrustCo Bank Corp./NY 8,488 117,050
PrivateBancorp, Inc. 2,317 74,677
Nara Bancorp, Inc. 2,658 56,536
---------------
TOTAL BANKS 2,059,599
---------------
REAL ESTATE 2.5%
New Century Financial Corp.+ 6,237 398,607
Essex Property Trust, Inc. 2,614 219,053
Kilroy Realty Corp. 3,250 138,937
---------------
TOTAL REAL ESTATE 756,597
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 109
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INSURANCE 1.0%
Philadelphia Consolidated Holding
Co.* 2,540 $ 167,996
Hilb Rogal & Hobbs Co. 4,100 148,584
---------------
TOTAL INSURANCE 316,580
---------------
THRIFTS & MORTGAGE FINANCE 0.5%
BankAtlantic Bancorp, Inc. -- Class A 6,830 135,917
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 135,917
---------------
CONSUMER FINANCE 0.2%
World Acceptance Corp.* 2,140 58,871
---------------
TOTAL CONSUMER FINANCE 58,871
---------------
TOTAL FINANCIALS 3,327,564
---------------
ENERGY 7.7%
OIL & GAS 4.7%
Patina Oil & Gas Corp. 8,062 302,325
Southwestern Energy Co.* 4,136 209,654
Cimarex Energy Co.*+ 4,750 180,025
Vintage Petroleum, Inc. 7,497 170,107
Cabot Oil & Gas Corp. 3,772 166,911
St. Mary Land & Exploration Co. 3,265 136,281
Remington Oil & Gas Corp.* 3,160 86,110
Frontier Oil Corp. 3,074 81,953
Petroleum Development Corp.* 2,016 77,757
---------------
TOTAL OIL & GAS 1,411,123
---------------
ENERGY EQUIPMENT & SERVICES 3.0%
Unit Corp.* 5,215 199,265
Cal Dive International, Inc.*+ 4,374 178,240
CARBO Ceramics, Inc. 1,941 133,929
Hydril* 2,645 120,374
Lone Star Technologies, Inc.* 3,310 110,753
Atwood Oceanics, Inc.* 1,830 95,343
Tetra Technologies, Inc.* 2,552 72,222
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 910,126
---------------
TOTAL ENERGY 2,321,249
---------------
MATERIALS 4.8%
METALS & MINING 1.6%
Massey Energy Co.+ 8,675 303,191
Cleveland-Cliffs, Inc. 1,230 127,748
Amcol International Corp. 3,345 67,201
---------------
TOTAL METALS & MINING 498,140
---------------
CHEMICALS 1.5%
Georgia Gulf Corp.+ 3,823 190,386
MacDermid, Inc. 3,453 124,653
Headwaters, Inc.* 3,831 109,184
Omnova Solutions, Inc.* 4,599 25,846
---------------
TOTAL CHEMICALS 450,069
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 1.0%
Florida Rock Industries, Inc. 4,942 $ 294,197
---------------
TOTAL CONSTRUCTION MATERIALS 294,197
---------------
PAPER & FOREST PRODUCTS 0.7%
Wausau-Mosinee Paper Corp. 5,890 105,196
Neenah Paper, Inc.* 1,830 59,658
Deltic Timber Corp. 1,294 54,930
---------------
TOTAL PAPER & FOREST PRODUCTS 219,784
---------------
TOTAL MATERIALS 1,462,190
---------------
CONSUMER STAPLES 3.2%
FOOD PRODUCTS 1.4%
Ralcorp Holdings, Inc. 3,340 140,046
Delta & Pine Land Co. 4,397 119,950
Sanderson Farms, Inc. 2,271 98,289
Lance, Inc. 3,380 64,321
---------------
TOTAL FOOD PRODUCTS 422,606
---------------
PERSONAL PRODUCTS 0.7%
NBTY, Inc.* 7,637 183,364
Natures Sunshine Products, Inc. 1,875 38,175
---------------
TOTAL PERSONAL PRODUCTS 221,539
---------------
HOUSEHOLD PRODUCTS 0.6%
Rayovac Corp.*+ 3,948 120,651
WD-40 Co. 2,017 57,303
---------------
TOTAL HOUSEHOLD PRODUCTS 177,954
---------------
FOOD & DRUG RETAILING 0.5%
United Natural Foods, Inc.* 4,557 141,723
---------------
TOTAL FOOD & DRUG RETAILING 141,723
---------------
TOTAL CONSUMER STAPLES 963,822
---------------
UTILITIES 1.3%
MULTI-UTILITIES 0.8%
Energen Corp. 4,160 245,232
---------------
TOTAL MULTI-UTILITIES 245,232
---------------
GAS UTILITIES 0.5%
New Jersey Resources Corp. 3,170 137,388
---------------
TOTAL GAS UTILITIES 137,388
---------------
TOTAL UTILITIES 382,620
---------------
TELECOMMUNICATION SERVICES 0.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.4%
Commonwealth Telephone
Enterprises, Inc.* 2,391 118,737
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 118,737
---------------
TOTAL TELECOMMUNICATION SERVICES 118,737
---------------
TOTAL COMMON STOCKS
(Cost $26,894,261) 30,111,249
---------------
See Notes to Financial Statements.
110 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 182,100 $ 182,100
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $182,100) 182,100
---------------
SECURITIES LENDING COLLATERAL 5.2%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 1,572,253 1,572,253
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,572,253) 1,572,253
---------------
TOTAL INVESTMENTS 105.3%
(Cost $28,648,614) $ 31,865,602
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (5.3)% $ (1,596,236)
===============
NET ASSETS - 100.0% $ 30,269,366
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 111
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
CONSUMER DISCRETIONARY 21.5%
SPECIALTY RETAIL 9.2%
Petsmart, Inc.+ 5,593 $ 198,719
Ross Stores, Inc.+ 5,680 163,982
Abercrombie & Fitch Co. -- Class A 3,362 157,846
Williams-Sonoma, Inc.* 4,487 157,224
Michaels Stores, Inc. 5,227 156,653
Chico's FAS, Inc.*+ 3,437 156,487
Urban Outfitters, Inc.* 3,120 138,528
American Eagle Outfitters, Inc.+ 2,844 133,952
CarMax, Inc.* 4,010 124,511
Advance Auto Parts, Inc.* 2,830 123,614
O'Reilly Automotive, Inc.* 2,124 95,686
Claire's Stores, Inc. 3,815 81,069
Regis Corp. 1,712 79,009
Pacific Sunwear of California, Inc.*+ 2,861 63,686
Aeropostale, Inc.* 2,147 63,186
---------------
TOTAL SPECIALTY RETAIL 1,894,152
---------------
HOTELS RESTAURANTS & LEISURE 5.0%
Mandalay Resort Group 2,601 183,188
Boyd Gaming Corp. 3,358 139,861
Outback Steakhouse, Inc. 2,840 130,015
Brinker International, Inc.*+ 3,328 116,713
GTECH Holdings Corp. 4,462 115,789
International Speedway Corp. --
Class A 2,049 108,187
Cheesecake Factory, Inc.*+ 3,001 97,443
Applebee's International, Inc. 3,125 82,656
Ruby Tuesday, Inc. 2,506 65,357
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,039,209
---------------
MEDIA 3.4%
Washington Post Co. -- Class B 329 323,414
Westwood One, Inc.*+ 3,700 99,641
Harte-Hanks, Inc. 3,286 85,370
Valassis Communications, Inc.* 1,974 69,110
Catalina Marketing Corp. 2,015 59,704
Reader's Digest Association, Inc. 3,837 53,373
---------------
TOTAL MEDIA 690,612
---------------
HOUSEHOLD DURABLES 2.0%
Harman International Industries, Inc. 2,577 327,279
Tupperware Corp.+ 2,255 46,724
Blyth, Inc. 1,572 46,468
---------------
TOTAL HOUSEHOLD DURABLES 420,471
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MULTILINE RETAIL 0.6%
Dollar Tree Stores, Inc.*+ 4,358 $ 124,987
---------------
TOTAL MULTILINE RETAIL 124,987
---------------
AUTO COMPONENTS 0.5%
Gentex Corp.+ 2,991 110,727
---------------
TOTAL AUTO COMPONENTS 110,727
---------------
TEXTILES & APPAREL 0.4%
Timberland Co. -- Class A* 1,325 83,038
---------------
TOTAL TEXTILES & APPAREL 83,038
---------------
AUTOMOBILES 0.4%
Thor Industries, Inc. 2,190 81,139
---------------
TOTAL AUTOMOBILES 81,139
---------------
TOTAL CONSUMER DISCRETIONARY 4,444,335
---------------
INDUSTRIALS 16.8%
COMMERCIAL SERVICES & SUPPLIES 6.4%
Dun & Bradstreet Corp.* 2,680 159,862
Career Education Corp.*+ 3,945 157,800
ChoicePoint, Inc.* 3,414 157,010
Education Management Corp.* 2,828 93,352
HNI Corp. 2,161 93,031
Copart, Inc.* 3,468 91,278
Brink's Co.+ 2,189 86,509
ITT Educational Services, Inc.* 1,766 83,973
Stericycle, Inc.* 1,735 79,723
Herman Miller, Inc.+ 2,722 75,209
Deluxe Corp. 1,930 72,047
Corinthian Colleges, Inc.* 3,489 65,750
Rollins, Inc. 1,756 46,218
Sotheby's Holdings, Inc. -- Class A*+ 2,448 44,456
Korn/Ferry International, Inc.* 1,505 31,229
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,337,447
---------------
MACHINERY 2.8%
Pentair, Inc. 3,880 169,013
Donaldson Co., Inc. 3,207 104,484
Graco, Inc. 2,667 99,612
Harsco Corp. 1,590 88,627
Crane Co. 2,110 60,852
Nordson Corp. 1,396 55,938
---------------
TOTAL MACHINERY 578,526
---------------
AIR FREIGHT & COURIERS 2.5%
Expeditors International Washington,
Inc.+ 4,106 229,444
C.H. Robinson Worldwide, Inc.+ 3,285 182,383
CNF, Inc. 1,990 99,699
---------------
TOTAL AIR FREIGHT & COURIERS 511,526
---------------
See Notes to Financial Statements.
112 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AEROSPACE & DEFENSE 1.2%
Precision Castparts Corp. 2,530 $ 166,170
Alliant Techsystems, Inc.*+ 1,452 94,932
---------------
TOTAL AEROSPACE & DEFENSE 261,102
---------------
ELECTRICAL EQUIPMENT 1.0%
Hubbell, Inc. -- Class B 2,351 122,957
AMETEK, Inc.+ 2,643 94,276
---------------
TOTAL ELECTRICAL EQUIPMENT 217,233
---------------
TRADING COMPANIES & DISTRIBUTORS 0.9%
Fastenal Co.+ 2,926 180,125
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 180,125
---------------
ROAD & RAIL 0.7%
J.B. Hunt Transport Services, Inc. 3,131 140,425
---------------
TOTAL ROAD & RAIL 140,425
---------------
AIRLINES 0.6%
JetBlue Airways Corp.*+ 3,988 92,601
AirTran Holdings, Inc.* 3,305 35,364
---------------
TOTAL AIRLINES 127,965
---------------
INDUSTRIAL CONGLOMERATES 0.4%
Carlisle Cos., Inc.+ 1,203 78,099
---------------
TOTAL INDUSTRIAL CONGLOMERATES 78,099
---------------
CONSTRUCTION & ENGINEERING 0.3%
Dycom Industries, Inc.* 1,870 57,072
---------------
TOTAL CONSTRUCTION & ENGINEERING 57,072
---------------
TOTAL INDUSTRIALS 3,489,520
---------------
INFORMATION TECHNOLOGY 16.0%
IT CONSULTING & SERVICES 4.1%
Cognizant Technology Solutions
Corp.*+ 5,122 216,814
DST Systems, Inc.* 3,230 168,348
Alliance Data Systems Corp.* 3,151 149,609
Acxiom Corp. 3,326 87,474
Certegy, Inc. 2,409 85,592
Gartner, Inc. -- Class A* 4,272 53,229
Titan Corp.* 3,261 52,828
CSG Systems International, Inc.* 1,965 36,746
---------------
TOTAL IT CONSULTING & SERVICES 850,640
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.6%
Microchip Technology, Inc. 7,954 212,054
Lam Research Corp.*+ 5,249 151,749
Cree, Inc.*+ 2,849 114,188
Silicon Laboratories, Inc.* 2,004 70,761
Semtech Corp.* 2,852 62,373
Integrated Circuit Systems, Inc.* 2,706 56,609
Micrel, Inc.*+ 3,473 38,272
Cabot Microelectronics Corp.* 854 34,203
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT $ 740,209
---------------
SOFTWARE 2.9%
McAfee, Inc.* 6,176 178,672
Macromedia, Inc.* 2,737 85,175
Jack Henry & Associates, Inc.+ 3,489 69,466
Reynolds & Reynolds Co. -- Class A 2,493 66,089
RSA Security, Inc.* 2,680 53,761
Macrovision Corp.*+ 1,917 49,305
Wind River Systems, Inc.* 3,174 43,008
Transaction Systems Architects,
Inc. -- Class A* 1,442 28,624
Advent Software, Inc.* 1,260 25,805
---------------
TOTAL SOFTWARE 599,905
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.0%
CDW Corp.+ 3,198 212,187
Amphenol Corp. -- Class A*+ 3,412 125,357
National Instruments Corp.+ 3,055 83,249
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 420,793
---------------
COMMUNICATIONS EQUIPMENT 1.8%
Harris Corp. 2,580 159,418
Avocent Corp.* 1,917 77,677
Plantronics, Inc. 1,863 77,259
ADTRAN, Inc. 2,947 56,405
---------------
TOTAL COMMUNICATIONS EQUIPMENT 370,759
---------------
OFFICE ELECTRONICS 0.8%
Zebra Technologies Corp. --
Class A* 2,764 155,558
---------------
TOTAL OFFICE ELECTRONICS 155,558
---------------
COMPUTERS & PERIPHERALS 0.7%
Diebold, Inc.+ 2,754 153,480
---------------
TOTAL COMPUTERS & PERIPHERALS 153,480
---------------
INTERNET SOFTWARE & SERVICES 0.1%
Retek, Inc.* 2,157 13,266
---------------
TOTAL INTERNET SOFTWARE & SERVICES 13,266
---------------
TOTAL INFORMATION TECHNOLOGY 3,304,610
---------------
HEALTH CARE 15.8%
HEALTH CARE PROVIDERS & SERVICES 5.4%
Patterson Cos., Inc.* 5,288 229,446
Coventry Health Care, Inc.*+ 3,457 183,498
Lincare Holdings, Inc.* 3,868 164,970
Henry Schein, Inc.* 1,670 116,299
Renal Care Group, Inc.* 2,600 93,574
Covance, Inc.* 2,407 93,271
First Health Group Corp.* 3,543 66,289
VCA Antech, Inc.* 3,162 61,975
Apria Healthcare Group, Inc.* 1,869 61,584
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 113
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
LifePoint Hospitals, Inc.*+ 1,495 $ 52,056
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,122,962
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 5.0%
Varian Medical Systems, Inc.*+ 5,235 226,361
DENTSPLY International, Inc. 3,110 174,782
Beckman Coulter, Inc. 2,343 156,958
Hillenbrand Industries, Inc. 2,384 132,407
Cytyc Corp.* 4,301 118,579
Edwards Lifesciences Corp.* 2,288 94,403
Inamed Corp.* 1,376 87,032
Visx, Inc.* 1,908 49,360
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,039,882
---------------
PHARMACEUTICALS 3.5%
Sepracor, Inc.*+ 4,051 240,508
Barr Pharmaceuticals, Inc.*+ 3,952 179,974
IVAX Corp.*+ 9,666 152,916
Valeant Pharmaceuticals International 3,240 85,374
Par Pharmaceutical Cos., Inc.* 1,301 53,835
---------------
TOTAL PHARMACEUTICALS 712,607
---------------
BIOTECHNOLOGY 1.9%
Charles River Laboratories
International, Inc.*+ 2,502 115,117
Cephalon, Inc.*+ 2,219 112,903
Protein Design Labs, Inc.*+ 3,684 76,111
Techne Corp.* 1,590 61,851
Vertex Pharmaceuticals, Inc.* 3,098 32,746
---------------
TOTAL BIOTECHNOLOGY 398,728
---------------
TOTAL HEALTH CARE 3,274,179
---------------
FINANCIALS 12.5%
BANKS 4.7%
Commerce Bancorp, Inc./NJ+ 3,054 196,678
TCF Financial Corp. 5,346 171,820
Associated Banc-Corp. 4,990 165,718
Bank of Hawaii Corp. 2,037 103,357
Cullen/Frost Bankers, Inc. 2,004 97,394
Wilmington Trust Corp. 2,598 93,918
Westamerica Bancorporation 1,225 71,430
Silicon Valley Bancshares* 1,386 62,121
---------------
TOTAL BANKS 962,436
---------------
CAPITAL MARKETS 3.8%
Legg Mason, Inc.+ 3,880 284,249
SEI Investments Co. 3,947 165,498
Eaton Vance Corp. 2,582 134,651
Investors Financial Services Corp.+ 2,558 127,849
Waddell & Reed Financial, Inc. --
Class A 3,186 76,113
---------------
TOTAL CAPITAL MARKETS 788,360
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 2.6%
Developers Diversified Realty Corp.+ 4,150 $ 184,135
Weingarten Realty Investors 3,430 137,543
United Dominion Realty Trust, Inc. 5,111 126,753
Rayonier, Inc. 1,918 93,809
---------------
TOTAL REAL ESTATE 542,240
---------------
INSURANCE 1.1%
Brown & Brown, Inc. 2,665 116,061
Arthur J. Gallagher & Co.+ 3,564 115,830
---------------
TOTAL INSURANCE 231,891
---------------
CONSUMER FINANCE 0.3%
MoneyGram International, Inc. 3,414 72,172
---------------
TOTAL CONSUMER FINANCE 72,172
---------------
TOTAL FINANCIALS 2,597,099
ENERGY 6.5%
ENERGY EQUIPMENT & SERVICES 3.7%
Smith International, Inc.* 4,042 219,925
Patterson-UTI Energy, Inc. 6,448 125,414
National-Oilwell, Inc.* 3,310 116,810
Varco International, Inc.* 3,770 109,895
Grant Prideco, Inc.* 4,756 95,358
FMC Technologies, Inc.* 2,631 84,718
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 752,120
---------------
OIL & GAS 2.8%
Murphy Oil Corp. 3,544 285,115
Noble Energy, Inc. 2,270 139,968
Western Gas Resources, Inc. 2,850 83,363
Plains Exploration & Production Co.* 2,970 77,220
---------------
TOTAL OIL & GAS 585,666
---------------
TOTAL ENERGY 1,337,786
---------------
MATERIALS 4.1%
CHEMICALS 2.2%
Lyondell Chemical Co.+ 9,312 269,303
Airgas, Inc. 2,890 76,614
Olin Corp. 2,708 59,630
Crompton Corp. 4,420 52,156
---------------
TOTAL CHEMICALS 457,703
---------------
METALS & MINING 1.4%
Peabody Energy Corp. 2,490 201,466
Arch Coal, Inc.+ 2,400 85,296
---------------
TOTAL METALS & MINING 286,762
---------------
CONTAINERS & PACKAGING 0.5%
Packaging Corporation of America 4,118 96,979
---------------
TOTAL CONTAINERS & PACKAGING 96,979
---------------
TOTAL MATERIALS 841,444
---------------
See Notes to Financial Statements.
114 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER STAPLES 3.6%
FOOD PRODUCTS 1.4%
Hormel Foods Corp. 5,344 $ 167,534
Tootsie Roll Industries, Inc. 2,016 69,814
Lancaster Colony Corp. 1,350 57,875
---------------
TOTAL FOOD PRODUCTS 295,223
---------------
FOOD & DRUG RETAILING 1.1%
Whole Foods Market, Inc.+ 2,396 228,458
---------------
TOTAL FOOD & DRUG RETAILING 228,458
---------------
HOUSEHOLD PRODUCTS 1.1%
Energizer Holdings, Inc.*+ 2,792 138,735
Church & Dwight Co., Inc. 2,404 80,822
---------------
TOTAL HOUSEHOLD PRODUCTS 219,557
---------------
TOTAL CONSUMER STAPLES 743,238
---------------
UTILITIES 2.5%
MULTI-UTILITIES 1.5%
Questar Corp. 3,250 165,620
Equitable Resources, Inc. 2,364 143,400
---------------
TOTAL MULTI-UTILITIES 309,020
---------------
ELECTRIC UTILITIES 0.6%
DPL, Inc. 4,877 122,462
---------------
TOTAL ELECTRIC UTILITIES 122,462
---------------
WATER UTILITIES 0.4%
Aqua America, Inc. 3,597 88,450
---------------
TOTAL WATER UTILITIES 88,450
---------------
TOTAL UTILITIES 519,932
---------------
TELECOMMUNICATION SERVICES 0.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
Cincinnati Bell, Inc.* 9,451 39,222
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 39,222
---------------
TOTAL TELECOMMUNICATION SERVICES 39,222
---------------
TOTAL COMMON STOCKS
(Cost $19,176,189) 20,591,365
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 92,528 $ 92,528
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $92,528) 92,528
---------------
SECURITIES LENDING COLLATERAL 9.8%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 2,031,814 2,031,814
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,031,814) 2,031,814
---------------
TOTAL INVESTMENTS 109.7%
(Cost $21,300,531) $ 22,715,707
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (9.7)% $ (2,013,675)
===============
NET ASSETS - 100.0% $ 20,702,032
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 115
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
INFORMATION TECHNOLOGY 24.2%
SOFTWARE 8.1%
Microsoft Corp. 39,041 $ 1,042,785
Oracle Corp.* 18,418 252,695
Computer Associates International,
Inc.+ 2,100 65,226
Electronic Arts, Inc.*+ 1,033 63,715
Symantec Corp.*+ 2,276 58,630
Adobe Systems, Inc. 808 50,694
Autodesk, Inc. 780 29,601
Intuit, Inc.* 639 28,122
Citrix Systems, Inc.*+ 572 14,031
Mercury Interactive Corp.*+ 291 13,255
Parametric Technology Corp.*+ 913 5,378
---------------
TOTAL SOFTWARE 1,624,132
---------------
COMPUTERS & PERIPHERALS 5.7%
International Business Machines
Corp. 5,974 588,917
Dell, Inc.* 8,916 375,720
Apple Computer, Inc.* 1,360 87,584
Network Appliance, Inc.*+ 1,214 40,329
Lexmark International, Inc.* 435 36,975
QLogic Corp.*+ 320 11,754
Gateway, Inc.* 1,260 7,573
---------------
TOTAL COMPUTERS & PERIPHERALS 1,148,852
---------------
COMMUNICATIONS EQUIPMENT 4.3%
Cisco Systems, Inc.* 23,642 456,291
Qualcomm, Inc. 5,882 249,397
Lucent Technologies, Inc.*+ 15,869 59,667
Corning, Inc.*+ 5,030 59,203
Avaya, Inc.*+ 1,544 26,557
---------------
TOTAL COMMUNICATIONS EQUIPMENT 851,115
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.8%
Intel Corp. 22,712 531,234
Analog Devices, Inc.+ 1,275 47,073
Maxim Integrated Products, Inc. 1,097 46,502
Linear Technology Corp. 1,043 40,427
Broadcom Corp. -- Class A*+ 1,113 35,928
Xilinx, Inc. 1,182 35,046
Altera Corp.*+ 1,248 25,833
PMC - Sierra, Inc.*+ 600 6,750
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 768,793
---------------
IT CONSULTING & SERVICES 1.3%
First Data Corp. 2,986 127,025
Automatic Data Processing, Inc. 1,964 87,103
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Paychex, Inc. 1,275 $ 43,452
---------------
TOTAL IT CONSULTING & SERVICES 257,580
---------------
INTERNET SOFTWARE & SERVICES 0.9%
Yahoo!, Inc.*+ 4,933 185,875
---------------
TOTAL INTERNET SOFTWARE & SERVICES 185,875
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.1%
Symbol Technologies, Inc. 818 14,151
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 14,151
---------------
TOTAL INFORMATION TECHNOLOGY 4,850,498
---------------
CONSUMER STAPLES 18.3%
FOOD & DRUG RETAILING 5.1%
Wal-Mart Stores, Inc. 15,205 803,128
Walgreen Co. 3,674 140,971
Sysco Corp. 2,297 87,677
---------------
TOTAL FOOD & DRUG RETAILING 1,031,776
---------------
BEVERAGES 4.3%
Coca-Cola Co. 8,689 361,723
PepsiCo, Inc. 6,046 315,601
Anheuser-Busch Cos., Inc. 2,839 144,022
Pepsi Bottling Group, Inc. 848 22,930
Brown-Forman Corp. -- Class B 410 19,959
---------------
TOTAL BEVERAGES 864,235
---------------
HOUSEHOLD PRODUCTS 3.7%
Procter & Gamble Co. 9,106 501,559
Kimberly-Clark Corp. 1,651 108,652
Colgate-Palmolive Co. 1,795 91,832
Clorox Co. 514 30,290
---------------
TOTAL HOUSEHOLD PRODUCTS 732,333
---------------
TOBACCO 2.4%
Altria Group, Inc.+ 7,377 450,735
UST, Inc.+ 559 26,893
---------------
TOTAL TOBACCO 477,628
---------------
FOOD PRODUCTS 1.7%
Sara Lee Corp. 2,814 67,930
Kellogg Co. 1,398 62,435
WM Wrigley Jr Co. 758 52,446
Hershey Foods Corp. 833 46,265
H.J. Heinz Co. 1,186 46,242
Campbell Soup Co.+ 1,386 41,427
McCormick & Co., Inc.+ 463 17,872
---------------
TOTAL FOOD PRODUCTS 334,617
---------------
PERSONAL PRODUCTS 1.1%
Gillette Co. 3,561 159,462
Avon Products, Inc.+ 1,587 61,417
---------------
TOTAL PERSONAL PRODUCTS 220,879
---------------
TOTAL CONSUMER STAPLES 3,661,468
---------------
See Notes to Financial Statements.
116 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
HEALTH CARE 17.6%
PHARMACEUTICALS 10.0%
Johnson & Johnson, Inc. 10,652 $ 675,550
Abbott Laboratories 5,588 260,680
Merck & Co., Inc. 7,959 255,802
Eli Lilly & Co. 4,059 230,348
Wyeth 4,793 204,134
Bristol-Myers Squibb Co.+ 6,984 178,930
Schering-Plough Corp.+ 5,290 110,455
Forest Laboratories, Inc.*+ 1,249 56,030
Allergan, Inc. 447 36,239
---------------
TOTAL PHARMACEUTICALS 2,008,168
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 4.1%
Medtronic, Inc. 4,341 215,617
Boston Scientific Corp.* 3,034 107,859
Guidant Corp. 1,081 77,940
Baxter International, Inc. 2,214 76,472
Zimmer Holdings, Inc.* 835 66,900
Stryker Corp. 1,360 65,620
St. Jude Medical, Inc.* 1,210 50,735
Becton, Dickinson & Co. 861 48,905
Biomet, Inc. 858 37,229
C.R. Bard, Inc. 359 22,969
Waters Corp.* 408 19,090
Hospira, Inc.* 530 17,755
Millipore Corp.* 173 8,617
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 815,708
---------------
BIOTECHNOLOGY 2.1%
Amgen, Inc.*+ 4,559 292,460
Gilead Sciences, Inc.* 1,459 51,051
Genzyme Corp.* 840 48,779
Medimmune, Inc.* 840 22,772
---------------
TOTAL BIOTECHNOLOGY 415,062
---------------
HEALTH CARE PROVIDERS & SERVICES 1.4%
UnitedHealth Group, Inc.+ 2,347 206,606
Quest Diagnostics, Inc. 350 33,443
Express Scripts, Inc.*+ 261 19,951
IMS Health, Inc. 783 18,173
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 278,173
---------------
TOTAL HEALTH CARE 3,517,111
---------------
INDUSTRIALS 15.5%
INDUSTRIAL CONGLOMERATES 8.1%
General Electric Co. 37,961 1,385,576
3M Co.+ 2,797 229,550
---------------
TOTAL INDUSTRIAL CONGLOMERATES 1,615,126
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AEROSPACE & DEFENSE 2.2%
United Technologies Corp. 1,716 $ 177,348
Boeing Co. 3,014 156,035
Lockheed Martin Corp. 1,500 83,325
Rockwell Collins, Inc.+ 600 23,664
---------------
TOTAL AEROSPACE & DEFENSE 440,372
---------------
AIR FREIGHT & COURIERS 1.7%
United Parcel Service, Inc. --
Class B+ 4,025 343,977
---------------
TOTAL AIR FREIGHT & COURIERS 343,977
---------------
MACHINERY 1.6%
Caterpillar, Inc. 1,149 112,039
Illinois Tool Works, Inc.+ 1,000 92,680
Danaher Corp.+ 1,048 60,166
Paccar, Inc. 590 47,483
Navistar International Corp.* 236 10,379
---------------
TOTAL MACHINERY 322,747
---------------
COMMERCIAL SERVICES & SUPPLIES 1.0%
Apollo Group, Inc. -- Class A*+ 627 50,605
Pitney Bowes, Inc. 786 36,376
H&R Block, Inc. 559 27,391
Cintas Corp.+ 583 25,571
Avery Dennison Corp. 373 22,369
Robert Half International, Inc. 584 17,187
Monster Worldwide, Inc.* 408 13,725
Equifax, Inc. 460 12,926
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 206,150
---------------
ELECTRICAL EQUIPMENT 0.7%
Emerson Electric Co. 1,422 99,682
Rockwell Automation, Inc. 620 30,721
---------------
TOTAL ELECTRICAL EQUIPMENT 130,403
---------------
BUILDING PRODUCTS 0.1%
American Standard Cos., Inc.* 731 30,205
---------------
TOTAL BUILDING PRODUCTS 30,205
---------------
CONSTRUCTION & ENGINEERING 0.1%
Fluor Corp. 290 15,808
---------------
TOTAL CONSTRUCTION & ENGINEERING 15,808
---------------
AIRLINES 0.0%
Delta Air Lines, Inc.*+ 443 3,314
---------------
TOTAL AIRLINES 3,314
---------------
TOTAL INDUSTRIALS 3,108,102
---------------
CONSUMER DISCRETIONARY 10.2%
SPECIALTY RETAIL 4.2%
Home Depot, Inc. 7,882 336,877
Lowe's Cos., Inc.+ 2,775 159,812
The Gap, Inc.+ 3,146 66,444
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 117
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Best Buy Co., Inc. 1,097 $ 65,184
Staples, Inc. 1,673 56,397
TJX Cos., Inc.+ 1,618 40,660
Bed Bath & Beyond, Inc.* 1,018 40,547
AutoZone, Inc.* 275 25,110
Sherwin-Williams Co. 480 21,422
RadioShack Corp.+ 535 17,591
---------------
TOTAL SPECIALTY RETAIL 830,044
---------------
INTERNET & CATALOG RETAIL 1.4%
eBay, Inc.*+ 2,384 277,212
---------------
TOTAL INTERNET & CATALOG RETAIL 277,212
---------------
HOTELS RESTAURANTS & LEISURE 1.2%
Starbucks Corp.* 1,347 83,999
Marriott International, Inc. --
Class A 760 47,865
Yum! Brands, Inc.+ 989 46,661
International Game Technology, Inc. 1,162 39,949
Harrah's Entertainment, Inc. 380 25,418
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 243,892
---------------
MULTILINE RETAIL 1.0%
Target Corp. 3,220 167,215
Dollar General Corp. 1,110 23,055
Family Dollar Stores, Inc.+ 571 17,832
---------------
TOTAL MULTILINE RETAIL 208,102
---------------
MEDIA 0.9%
McGraw-Hill Cos., Inc. 645 59,043
Omnicom Group 637 53,712
New York Times Co. -- Class A+ 497 20,278
Knight-Ridder, Inc. 261 17,471
Dow Jones & Co., Inc. 284 12,229
Meredith Corp. 173 9,377
---------------
TOTAL MEDIA 172,110
---------------
TEXTILES & APPAREL 0.6%
Nike, Inc. -- Class B 887 80,442
Coach, Inc.* 644 36,322
---------------
TOTAL TEXTILES & APPAREL 116,764
---------------
HOUSEHOLD DURABLES 0.5%
Fortune Brands, Inc. 485 37,432
Black & Decker Corp.+ 273 24,114
Newell Rubbermaid, Inc.+ 930 22,497
Stanley Works 280 13,717
Maytag Corp. 272 5,739
---------------
TOTAL HOUSEHOLD DURABLES 103,499
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AUTOMOBILES 0.3%
Harley-Davidson, Inc. 990 $ 60,142
---------------
TOTAL AUTOMOBILES 60,142
---------------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Mattel, Inc. 1,400 27,286
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 27,286
---------------
AUTO COMPONENTS 0.0%
Goodyear Tire & Rubber Co.*+ 600 8,796
---------------
TOTAL AUTO COMPONENTS 8,796
---------------
TOTAL CONSUMER DISCRETIONARY 2,047,847
---------------
ENERGY 7.5%
OIL & GAS 6.1%
Exxon Mobil Corp. 23,170 1,187,694
XTO Energy, Inc. 880 31,134
---------------
TOTAL OIL & GAS 1,218,828
---------------
ENERGY EQUIPMENT & SERVICES 1.4%
Schlumberger Ltd. 2,113 141,465
Halliburton Co. 1,496 58,703
Baker Hughes, Inc. 1,130 48,217
BJ Services Co.+ 547 25,458
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 273,843
---------------
TOTAL ENERGY 1,492,671
---------------
MATERIALS 2.7%
CHEMICALS 2.3%
EI Du Pont de Nemours & Co. 3,569 175,059
Dow Chemical Co. 3,390 167,839
Praxair, Inc. 1,097 48,433
Ecolab, Inc.+ 870 30,563
Sigma-Aldrich Corp. 236 14,269
International Flavors & Fragrances,
Inc. 322 13,794
Hercules, Inc.*+ 384 5,702
---------------
TOTAL CHEMICALS 455,659
---------------
CONTAINERS & PACKAGING 0.2%
Ball Corp. 384 16,888
Sealed Air Corp.*+ 285 15,182
Pactiv Corp.* 509 12,873
---------------
TOTAL CONTAINERS & PACKAGING 44,943
---------------
METALS & MINING 0.2%
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 602 23,015
Allegheny Technologies, Inc.+ 323 6,999
---------------
TOTAL METALS & MINING 30,014
---------------
TOTAL MATERIALS 530,616
---------------
See Notes to Financial Statements.
118 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
FINANCIALS 2.3%
CONSUMER FINANCE 1.7%
American Express Co. 4,512 $ 254,341
SLM Corp. 1,443 77,042
---------------
TOTAL CONSUMER FINANCE 331,383
---------------
REAL ESTATE 0.2%
Simon Property Group, Inc.+ 746 48,244
---------------
TOTAL REAL ESTATE 48,244
---------------
DIVERSIFIED FINANCIALS 0.2%
Moody's Corp. 507 44,033
---------------
TOTAL DIVERSIFIED FINANCIALS 44,033
---------------
CAPITAL MARKETS 0.2%
T. Rowe Price Group, Inc. 434 26,994
Federated Investors, Inc. -- Class B 362 11,005
---------------
TOTAL CAPITAL MARKETS 37,999
---------------
TOTAL FINANCIALS 461,659
---------------
TELECOMMUNICATION SERVICES 0.7%
WIRELESS TELECOMMUNICATION SERVICES 0.6%
Nextel Communications,
Inc. -- Class A* 3,988 119,640
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 119,640
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.1%
Qwest Communications International,
Inc.* 6,516 28,931
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 28,931
---------------
TOTAL TELECOMMUNICATION SERVICES 148,571
---------------
UTILITIES 0.5%
ELECTRIC UTILITIES 0.3%
TXU Corp. 810 52,294
CenterPoint Energy, Inc. 1,040 11,752
---------------
TOTAL ELECTRIC UTILITIES 64,046
---------------
MULTI-UTILITIES 0.2%
AES Corp.* 2,332 31,878
---------------
TOTAL MULTI-UTILITIES 31,878
---------------
TOTAL UTILITIES 95,924
---------------
TOTAL COMMON STOCKS
(Cost $18,887,636) 19,914,467
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 98,342 $ 98,342
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $98,342) 98,342
---------------
SECURITIES LENDING COLLATERAL 7.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,446,609 1,446,609
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,446,609) 1,446,609
---------------
TOTAL INVESTMENTS 107.2%
(Cost $20,432,587) $ 21,459,418
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (7.2)% $ (1,447,694)
===============
NET ASSETS - 100.0% $ 20,011,724
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 119
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 94.1%
INDUSTRIALS 42.2%
BUILDING PRODUCTS 7.6%
Masco Corp.+ 17,200 $ 628,316
American Standard Cos., Inc.* 10,400 429,728
USG Corp.*+ 6,700 269,809
Simpson Manufacturing Co., Inc. 5,800 202,420
Lennox International, Inc. 8,201 166,890
York International Corp.+ 4,501 155,465
Griffon Corp.*+ 5,200 140,400
NCI Building Systems, Inc.* 3,300 123,750
---------------
TOTAL BUILDING PRODUCTS 2,116,778
---------------
CONSTRUCTION & ENGINEERING 7.5%
Fluor Corp. 5,600 305,256
Jacobs Engineering Group, Inc.* 4,900 234,171
Chicago Bridge & Iron NV Co. 5,101 204,040
URS Corp.* 5,500 176,550
Dycom Industries, Inc.*+ 5,600 170,912
McDermott International, Inc.* 8,900 163,404
Shaw Group, Inc.*+ 8,800 157,080
Washington Group
International, Inc.* 3,700 152,625
Granite Construction, Inc. 5,600 148,960
Quanta Services, Inc.* 17,300 138,400
EMCOR Group, Inc.* 2,700 121,986
Insituform Technologies, Inc. --
Class A* 4,700 106,549
---------------
TOTAL CONSTRUCTION & ENGINEERING 2,079,933
---------------
ROAD & RAIL 7.1%
Canadian National Railway Co. 4,100 251,125
Burlington Northern Santa Fe Corp. 5,200 246,012
Union Pacific Corp. 3,500 235,375
Norfolk Southern Corp. 6,000 217,140
CSX Corp. 4,200 168,336
Canadian Pacific Railway Ltd. 4,000 137,640
J.B. Hunt Transport Services, Inc. 2,400 107,640
Laidlaw International, Inc.* 4,200 89,880
Yellow Roadway Corp.*+ 1,600 89,136
Werner Enterprises, Inc. 3,600 81,504
Landstar System, Inc.* 1,100 81,004
Heartland Express, Inc. 3,400 76,398
Swift Transportation Co., Inc.* 3,500 75,180
Knight Transportation, Inc. 2,600 64,480
Sirva, Inc.* 2,836 54,508
---------------
TOTAL ROAD & RAIL 1,975,358
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 6.9%
W.W. Grainger, Inc. 7,600 $ 506,312
Fastenal Co.+ 6,600 406,296
MSC Industrial Direct Co. -- Class A 9,000 323,820
Hughes Supply, Inc.+ 8,300 268,505
Watsco, Inc. 5,700 200,754
Applied Industrial Technologies, Inc. 7,200 197,280
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 1,902,967
---------------
MACHINERY 6.6%
Caterpillar, Inc.+ 2,100 204,771
Illinois Tool Works, Inc. 2,000 185,360
Danaher Corp.+ 2,700 155,007
Deere & Co.+ 2,000 148,800
Volvo AB - SP ADR 3,700 146,705
Ingersoll-Rand Co. -- Class A 1,700 136,510
Paccar, Inc. 1,600 128,768
Eaton Corp.+ 1,700 123,012
Parker Hannifin Corp. 1,400 106,036
Dover Corp. 2,500 104,850
ITT Industries, Inc. 1,200 101,340
Pentair, Inc. 1,800 78,408
Pall Corp. 2,600 75,270
Cummins, Inc. 800 67,032
SPX Corp.+ 1,500 60,090
---------------
TOTAL MACHINERY 1,821,959
---------------
AIR FREIGHT & COURIERS 6.5%
United Parcel Service, Inc. --
Class B+ 7,700 658,042
FedEx Corp.+ 3,800 374,262
Expeditors International
Washington, Inc.+ 2,800 156,464
C.H. Robinson Worldwide, Inc.+ 2,600 144,352
Ryder System, Inc. 2,300 109,871
CNF, Inc. 2,000 100,200
UTI Worldwide, Inc. 1,200 81,624
EGL, Inc.* 2,400 71,736
Pacer International, Inc.* 2,800 59,528
Forward Air Corp.* 1,300 58,110
---------------
TOTAL AIR FREIGHT & COURIERS 1,814,189
---------------
TOTAL INDUSTRIALS 11,711,184
---------------
CONSUMER DISCRETIONARY 15.9%
HOTELS RESTAURANTS & LEISURE 9.1%
Starbucks Corp.*+ 4,830 301,199
Carnival Corp.+ 5,050 291,031
McDonald's Corp. 8,330 267,060
See Notes to Financial Statements.
120 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2004
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Marriott International, Inc. --
Class A 3,050 $ 192,089
Starwood Hotels & Resorts
Worldwide, Inc.+ 3,220 188,048
Royal Caribbean Cruises Ltd.+ 3,370 183,463
Yum! Brands, Inc.+ 3,720 175,509
MGM Mirage, Inc.*+ 2,210 160,755
Hilton Hotels Corp. 6,840 155,542
International Game Technology, Inc. 4,170 143,365
Harrah's Entertainment, Inc.+ 1,900 127,091
Darden Restaurants, Inc. 3,670 101,806
Wendy's International, Inc. 2,330 91,476
Outback Steakhouse, Inc. 1,600 73,248
Brinker International, Inc.*+ 1,900 66,633
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 2,518,315
---------------
INTERNET & CATALOG RETAIL 6.8%
eBay, Inc.*+ 6,500 755,820
InterActiveCorp*+ 14,300 394,966
Amazon.com, Inc.*+ 8,500 376,465
Coldwater Creek, Inc.* 3,300 101,871
Overstock.com, Inc.* 1,300 89,700
Insight Enterprises, Inc.* 4,300 88,236
Priceline.com, Inc.*+ 3,300 77,847
---------------
TOTAL INTERNET & CATALOG RETAIL 1,884,905
---------------
TOTAL CONSUMER DISCRETIONARY 4,403,220
---------------
ENERGY 14.1%
OIL & GAS 7.1%
Exxon Mobil Corp. 5,300 271,678
BP PLC - SP ADR 3,600 210,240
Total SA - SP ADR+ 1,600 175,744
Royal Dutch Petroleum Co.+ 2,800 160,664
ENI-Ente Nazionale Idrocarburi -
SP ADR+ 1,200 151,008
ChevronTexaco Corp.+ 2,800 147,028
PetroChina Co. Ltd. - SP ADR 2,600 139,594
Shell Transport & Trading Co. PLC -
SP ADR 2,500 128,500
ConocoPhillips 1,200 104,196
Petroleo Brasiliero SA - Petrobras 2,600 103,428
China Petroleum & Chemical Corp. -
SP ADR 2,000 81,980
Repsol YPF SA - SP ADR 3,100 80,910
EnCana Corp. 1,400 79,884
Imperial Oil Ltd. 1,100 65,340
Occidental Petroleum Corp. 1,100 64,196
---------------
TOTAL OIL & GAS 1,964,390
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 7.0%
Schlumberger Ltd.+ 4,200 $ 281,190
Halliburton Co. 5,200 204,048
Transocean, Inc.*+ 4,400 186,516
Baker Hughes, Inc.+ 4,000 170,680
GlobalSantaFe Corp.+ 3,900 129,129
Tenaris SA - SP ADR 2,500 122,250
BJ Services Co.+ 2,600 121,004
Diamond Offshore Drilling, Inc.+ 3,000 120,150
Weatherford International Ltd.*+ 2,300 117,990
Smith International, Inc.* 1,800 97,938
ENSCO International, Inc. 3,000 95,220
Precision Drilling Corp.* 1,400 87,920
Patterson-UTI Energy, Inc. 4,100 79,745
Nabors Industries Ltd.* 1,400 71,806
Noble Corp.*+ 1,400 69,636
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,955,222
---------------
TOTAL ENERGY 3,919,612
---------------
INFORMATION TECHNOLOGY 8.7%
INTERNET SOFTWARE & SERVICES 8.2%
Yahoo!, Inc.*+ 31,172 1,174,561
VeriSign, Inc.*+ 11,560 387,491
WebEx Communications, Inc.*+ 6,470 153,856
EarthLink, Inc.*+ 12,250 141,120
RealNetworks, Inc.*+ 13,830 91,555
Open Text Corp.* 4,160 83,408
DoubleClick, Inc.*+ 9,570 74,455
PEC Solutions, Inc.* 4,420 62,631
Ariba, Inc.* 3,763 62,466
United Online, Inc.* 4,840 55,805
---------------
TOTAL INTERNET SOFTWARE & SERVICES 2,287,348
---------------
SOFTWARE 0.5%
Internet Security Systems, Inc.* 5,640 131,130
---------------
TOTAL SOFTWARE 131,130
---------------
TOTAL INFORMATION TECHNOLOGY 2,418,478
---------------
MATERIALS 6.7%
CHEMICALS 6.7%
EI Du Pont de Nemours & Co. 4,900 240,345
Dow Chemical Co. 4,400 217,844
BASF AG - SP ADR+ 3,000 216,060
Monsanto Co. 2,400 133,320
Praxair, Inc. 2,700 119,205
Air Products & Chemicals, Inc. 2,000 115,940
Akzo Nobel NV - SP ADR 2,600 110,474
PPG Industries, Inc. 1,600 109,056
Syngenta AG - SP ADR* 5,000 106,750
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 121
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Ecolab, Inc.+ 2,900 $ 101,877
Rohm & Haas Co.+ 2,200 97,306
Potash Corp. Of Saskatchewan+ 1,100 91,366
Lyondell Chemical Co.+ 2,400 69,408
Eastman Chemical Co.+ 1,100 63,503
Sigma-Aldrich Corp.+ 1,000 60,460
---------------
TOTAL CHEMICALS 1,852,914
---------------
TOTAL MATERIALS 1,852,914
---------------
UTILITIES 6.5%
ELECTRIC UTILITIES 6.5%
E.ON AG - SP ADR 2,600 236,600
Exelon Corp.+ 3,700 163,059
Southern Co.+ 4,400 147,488
Korea Electric Power
Corp. - SP ADR+ 9,600 127,104
TXU Corp.+ 1,900 122,664
Entergy Corp.+ 1,700 114,903
FPL Group, Inc.+ 1,500 112,125
PG&E Corp.*+ 3,200 106,496
Scottish Power PLC - SP ADR 3,400 105,944
American Electric Power Co., Inc.+ 3,000 103,020
FirstEnergy Corp. 2,600 102,726
Progress Energy, Inc.+ 2,100 95,004
Edison International 2,900 92,887
PPL Corp. 1,700 90,576
Consolidated Edison, Inc. 2,000 87,500
---------------
TOTAL ELECTRIC UTILITIES 1,808,096
---------------
TOTAL UTILITIES 1,808,096
---------------
TOTAL COMMON STOCKS
(Cost $22,144,698) 26,113,504
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 6.1%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 1,691,604 $ 1,691,604
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,691,604) 1,691,604
---------------
SECURITIES LENDING COLLATERAL 22.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 6,101,785 6,101,785
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,101,785) 6,101,785
---------------
TOTAL INVESTMENTS 122.2%
(Cost $29,938,087) $ 33,906,893
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.2)% $ (6,159,451)
===============
NET ASSETS - 100.0% $ 27,747,442
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
122 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 63.8%
Fannie Mae*
2.20% due 04/27/05 $ 25,000,000 $ 24,825,833
Farmer Mac*
2.00% due 02/28/05 12,200,000 12,162,044
2.10% due 01/11/05 10,000,000 9,995,333
Federal Farm Credit Bank*
2.12% due 01/12/05 10,000,000 9,994,700
Federal Home Loan Bank*
1.94% due 01/14/05 25,000,000 24,985,181
Freddie Mac*
1.93% due 01/04/05 25,000,000 24,998,660
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $106,961,751) 106,961,751
---------------
REPURCHASE AGREEMENTS 43.7%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 18,233,995 18,233,995
1.48% due 01/03/05 36,987,003 36,987,003
1.25% due 01/03/05 18,105,526 18,105,526
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $73,326,524) 73,326,524
---------------
TOTAL INVESTMENTS 107.5%
(Cost $180,288,275) $ 180,288,275
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (7.5)% $ (12,610,278)
===============
NET ASSETS - 100.0% $ 167,677,997
* 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.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 123
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
BANKING FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
J.P. Morgan Chase & Co. 26,243 $ 1,023,739
Fannie Mae+ 13,163 937,337
Bank of America Corp. 19,114 898,167
Washington Mutual, Inc. 18,241 771,230
Freddie Mac 9,999 736,926
Fifth Third Bancorp+ 14,340 677,995
National City Corp. 17,788 667,939
Regions Financial Corp. 17,231 613,251
Wells Fargo & Co. 9,443 586,882
KeyCorp 17,276 585,656
M&T Bank Corp. 5,289 570,366
Comerica, Inc. 8,781 535,817
AmSouth Bancorp+ 20,436 529,292
Sovereign Bancorp, Inc. 22,646 510,667
Zions Bancorporation 7,165 487,435
MGIC Investment Corp.+ 7,015 483,404
Banknorth Group, Inc. 12,940 473,604
Huntington Bancshares, Inc. 19,050 472,059
Wachovia Corp.+ 8,462 445,101
PMI Group, Inc.+ 10,515 439,001
People's Bank/Bridgeport CT 11,163 434,129
Associated Banc-Corp. 13,060 433,723
First Horizon National Corp.+ 9,983 430,367
Colonial BancGroup, Inc. 19,281 409,336
Webster Financial Corp. 7,985 404,360
Whitney Holding Corp. 8,578 385,924
Southwest Bancorp of Texas, Inc. 16,435 382,771
Hudson United Bancorp 9,691 381,632
Flagstar Bancorp, Inc. 16,380 370,188
Downey Financial Corp. 6,482 369,474
Provident Bankshares Corp. 10,113 367,810
U.S. Bancorp 11,737 367,603
Commercial Federal Corp. 12,084 359,016
Bankunited Financial Corp. --
Class A* 11,167 356,786
Waypoint Financial Corp.+ 12,549 355,764
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Greater Bay Bancorp+ 12,747 $ 355,386
Riggs National Corp. 16,649 353,958
Brookline Bancorp, Inc. 21,572 352,055
Susquehanna Bancshares, Inc. 14,067 350,972
Anchor BanCorp Wisconsin, Inc. 11,813 344,349
FirstFed Financial Corp.* 6,620 343,379
Community Bank System, Inc. 11,800 333,350
Kookmin Bank - SP ADR* 7,370 288,020
Uniao de Bancos Brasileiros SA 8,910 282,625
BB&T Corp. 3,210 134,981
SunTrust Banks, Inc. 1,444 106,719
Golden West Financial Corp. 1,580 97,044
Countrywide Financial Corp. 2,247 83,161
UnionBanCal Corp. 1,141 73,572
PNC Financial Services Group, Inc. 915 52,558
---------------
TOTAL COMMON STOCKS
(Cost $20,353,959) 21,806,880
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 97,687 97,687
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $97,687) 97,687
---------------
SECURITIES LENDING COLLATERAL 6.0%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 1,309,542 1,309,542
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,309,542) 1,309,542
---------------
TOTAL INVESTMENTS 105.9%
(Cost $21,761,188) $ 23,214,109
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (5.9)% $ (1,294,370)
===============
NET ASSETS - 100.0% $ 21,919,739
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
124 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
EI Du Pont de Nemours & Co. 52,405 $ 2,570,465
Monsanto Co.+ 26,090 1,449,299
Dow Chemical Co. 28,775 1,424,650
MeadWestvaco Corp. 39,688 1,345,026
Alcoa, Inc. 40,000 1,256,800
Scotts Co. -- Class A* 15,340 1,127,797
Ecolab, Inc.+ 31,428 1,104,066
Praxair, Inc. 23,967 1,058,143
Newmont Mining Corp.+ 23,512 1,044,168
Air Products & Chemicals, Inc. 17,895 1,037,373
Sealed Air Corp.*+ 18,620 991,887
Phelps Dodge Corp.+ 9,705 960,019
OM Group, Inc.*+ 29,241 947,993
Lubrizol Corp. 25,043 923,085
Potlatch Corp.+ 18,224 921,770
Arch Chemicals, Inc. 29,993 863,199
Nucor Corp.+ 15,926 833,567
Smurfit-Stone Container Corp.*+ 43,008 803,389
United States Steel Corp.+ 15,614 800,217
Packaging Corporation of America 33,768 795,236
Lyondell Chemical Co.+ 25,258 730,461
Vulcan Materials Co. 13,209 721,343
Georgia-Pacific Corp.+ 19,022 712,945
International Paper Co.+ 16,574 696,108
Inco Ltd.* 18,612 684,549
Quanex Corp.+ 9,037 619,667
Ball Corp. 13,679 601,602
Rohm & Haas Co. 13,239 585,561
International Steel Group, Inc.* 13,773 558,633
Airgas, Inc. 20,702 548,810
Peabody Energy Corp.+ 6,655 538,456
Eastman Chemical Co.+ 8,834 509,987
Lafarge North America, Inc. 9,526 488,874
Steel Dynamics, Inc.+ 12,145 460,053
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 11,961 457,269
Pactiv Corp.*+ 17,723 448,215
Silgan Holdings, Inc. 7,312 445,740
Commercial Metals Co. 8,690 439,366
Pope & Talbot, Inc. 25,565 437,417
Florida Rock Industries, Inc. 7,128 424,330
Imperial Chemical Industries PLC -
SP ADR 22,290 410,805
Owens-Illinois, Inc.* 18,013 407,994
Southern Peru Copper Corp.+ 8,550 403,646
RPM International, Inc. 19,858 390,408
Mosaic Co.*+ 22,915 373,973
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Consol Energy, Inc. 8,998 $ 369,368
Headwaters, Inc.* 12,893 367,451
Eagle Materials, Inc. 4,255 367,419
Lafarge SA - SP ADR 14,756 356,357
Massey Energy Co.+ 9,736 340,273
Texas Industries, Inc. 5,080 316,890
Weyerhaeuser Co. 4,700 315,934
Allegheny Technologies, Inc.+ 14,368 311,355
Cytec Industries, Inc. 6,000 308,520
Louisiana-Pacific Corp.+ 11,288 301,841
PPG Industries, Inc. 4,404 300,177
Sonoco Products Co. 10,095 299,317
Votorantim Celulose e Papel SA -
SP ADR 17,235 279,207
Georgia Gulf Corp.+ 5,490 273,402
Sensient Technologies Corp. 11,388 273,198
Cleveland-Cliffs, Inc.+ 2,595 269,517
Aracruz Celulose SA 6,900 260,130
FMC Corp.* 5,140 248,262
PolyOne Corp.* 27,304 247,374
Crompton Corp. 19,745 232,991
BHP Billiton PLC - SP ADR 9,795 228,909
Wausau-Mosinee Paper Corp. 12,623 225,447
Deltic Timber Corp. 5,302 225,070
Caraustar Industries, Inc.* 12,405 208,652
Ferro Corp. 8,907 206,553
Carpenter Technology Corp. 3,445 201,395
Longview Fibre Co. 10,989 199,340
Amcol International Corp. 9,740 195,677
Great Lakes Chemical Corp. 6,245 177,920
Rock-Tenn Co. -- Class A 11,688 177,190
RTI International Metals, Inc.* 8,331 171,119
AptarGroup, Inc. 3,226 170,268
Cabot Corp. 4,209 162,804
A. Schulman, Inc. 7,539 161,410
Agrium, Inc. 9,520 160,412
NewMarket Corp.* 7,657 152,374
BASF AG - SP ADR+ 2,110 151,962
Hercules, Inc.*+ 9,380 139,293
Minerals Technologies, Inc. 1,825 121,728
A.M. Castle & Co.* 10,125 120,893
Omnova Solutions, Inc.* 20,409 114,699
Agnico-Eagle Mines Ltd. 7,603 104,541
Sinopec Beijing Yanhua
Petrochemical Co. Ltd. - SP ADR 4,410 103,062
Yanzhou Coal Mining Co. Ltd. -
SP ADR 1,410 100,463
Penford Corp. 6,365 100,121
Syngenta AG - SP ADR* 4,550 97,143
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 125
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BHP Billiton Ltd. - SP ADR 3,930 $ 94,399
Braskem SA - SP ADR* 1,550 78,988
Alcan, Inc. 1,540 75,522
Bowater, Inc.+ 700 30,779
Greif, Inc. -- Class A 490 27,440
Sinopec Shanghai Petrochemical
Co. Ltd. - SP ADR 690 25,737
Schweitzer-Mauduit
International, Inc. 696 23,629
---------------
TOTAL COMMON STOCKS
(Cost $39,658,196) 45,928,283
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.8%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 350,862 350,862
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $350,862) 350,862
---------------
SECURITIES LENDING COLLATERAL 15.1%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 6,982,118 6,982,118
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,982,118) 6,982,118
---------------
TOTAL INVESTMENTS 115.4%
(Cost $46,991,176) $ 53,261,263
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (15.4)% $ (7,099,486)
===============
NET ASSETS - 100.0% $ 46,161,777
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
126 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Amgen, Inc.*+ 11,179 $ 717,133
Genentech, Inc.*+ 10,038 546,469
Biogen Idec, Inc.*+ 5,520 367,687
Genzyme Corp.* 5,581 324,089
Gilead Sciences, Inc.* 9,197 321,803
Chiron Corp.* 7,206 240,176
Applera Corp. - Applied Biosystems
Group 9,879 206,570
Invitrogen Corp.*+ 3,064 205,686
Cephalon, Inc.*+ 3,751 190,851
Millennium Pharmaceuticals, Inc.* 14,775 179,073
Angiotech Pharmaceuticals, Inc.* 8,144 150,257
United Therapeutics Corp.* 2,995 135,224
Qiagen N.V.* 11,998 131,378
Medimmune, Inc.*+ 4,785 129,721
Nabi Biopharmeceuticals* 8,810 129,067
Vertex Pharmaceuticals, Inc.* 11,987 126,703
CV Therapeutics, Inc.* 5,481 126,063
Myriad Genetics, Inc.* 5,555 125,043
Affymetrix, Inc.*+ 3,359 122,771
Eyetech Pharmaceuticals, Inc.* 2,679 121,895
Transkaryotic Therapies, Inc.* 4,554 115,626
Charles River Laboratories
International, Inc.*+ 2,403 110,562
Onyx Pharmaceuticals, Inc.*+ 3,403 110,223
Serologicals Corp.* 4,952 109,538
Ligand Pharmaceuticals, Inc. --
Class B* 9,147 106,471
Digene Corp.* 3,993 104,417
Neurocrine Biosciences, Inc.* 1,946 95,938
Celgene Corp.*+ 3,604 95,614
InterMune, Inc.* 7,076 93,828
QLT, Inc.* 5,354 86,092
Dov Pharmaceutical, Inc.*+ 4,742 85,593
Pharmion Corp.* 2,026 85,518
ImClone Systems, Inc.* 1,676 77,230
Incyte Corp.* 7,458 74,505
Enzon Pharmaceuticals, Inc.* 4,301 59,010
Medarex, Inc.*+ 4,949 53,350
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Vicuron Pharmaceuticals, Inc.* 2,831 $ 49,288
ICOS Corp.* 1,650 46,662
OSI Pharmaceuticals, Inc.* 611 45,733
Abgenix, Inc.* 3,978 41,133
Amylin Pharmaceuticals, Inc.* 1,722 40,226
Gen-Probe, Inc.* 880 39,785
NPS Pharmaceuticals, Inc.*+ 1,953 35,701
Protein Design Labs, Inc.* 1,642 33,924
Alkermes, Inc.* 2,325 32,759
Martek Biosciences Corp.*+ 562 28,774
Techne Corp.* 730 28,397
Human Genome Sciences, Inc.* 2,053 24,677
ID Biomedical Corp.* 1,406 20,935
Encysive Pharmaceuticals, Inc.* 1,989 19,751
Applera Corp. - Celera Genomics
Group* 539 7,411
Telik, Inc.* 334 6,393
---------------
TOTAL COMMON STOCKS
(Cost $4,905,504) 6,562,723
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 59,082 59,082
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $59,082) 59,082
---------------
SECURITIES LENDING COLLATERAL 9.3%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 612,142 612,142
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $612,142) 612,142
---------------
TOTAL INVESTMENTS 109.8%
(Cost $5,576,728) $ 7,233,947
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (9.8)% $ (645,616)
===============
NET ASSETS - 100.0% $ 6,588,331
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 127
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Altria Group, Inc.+ 27,572 $ 1,684,649
Procter & Gamble Co. 26,760 1,473,941
Coca-Cola Co. 33,760 1,405,429
PepsiCo, Inc. 22,443 1,171,525
Anheuser-Busch Cos., Inc.+ 18,910 959,304
Sysco Corp.+ 24,210 924,096
Kimberly-Clark Corp. 13,530 890,409
Colgate-Palmolive Co. 17,340 887,114
Archer-Daniels-Midland Co. 35,530 792,674
Sara Lee Corp. 31,020 748,823
Kraft Foods, Inc. -- Class A 19,490 694,039
Kroger Co.*+ 39,350 690,199
H.J. Heinz Co. 17,418 679,128
Estee Lauder Cos., Inc. -- Class A 13,740 628,880
Coca-Cola Enterprises, Inc. 29,780 620,913
Tyson Foods, Inc. -- Class A 30,910 568,744
Supervalu, Inc.+ 16,110 556,117
Gillette Co.+ 12,352 553,123
Dean Foods Co.* 15,782 520,017
Alberto-Culver Co. -- Class B 10,400 505,128
7-Eleven, Inc.* 17,178 411,413
Hormel Foods Corp. 12,958 406,233
J.M. Smucker Co. 7,710 362,910
Church & Dwight Co., Inc. 10,690 359,398
Smithfield Foods, Inc.* 12,056 356,737
Del Monte Foods Co.* 32,295 355,891
Pilgrim's Pride Corp. 11,400 349,752
UST, Inc.+ 7,200 346,392
Loews Corp. - Carolina Group 11,150 322,792
Adolph Coors Co. -- Class B+ 4,217 319,100
Ralcorp Holdings, Inc. 6,530 273,803
General Mills, Inc.+ 5,490 272,908
Kellogg Co. 5,950 265,727
Avon Products, Inc.+ 6,737 260,722
Safeway, Inc.*+ 12,868 254,014
Sanderson Farms, Inc. 5,600 242,368
Ruddick Corp. 11,108 240,933
WM Wrigley Jr Co. 3,230 223,484
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ConAgra Foods, Inc.+ 7,530 $ 221,759
Hershey Foods Corp. 3,700 205,498
Clorox Co. 3,080 181,504
Campbell Soup Co.+ 5,760 172,166
J&J Snack Foods Corp. 3,336 163,564
Corn Products International, Inc. 2,994 160,359
NBTY, Inc.* 6,365 152,824
Albertson's, Inc.+ 4,830 115,340
McCormick & Co., Inc.+ 2,870 110,782
Pepsi Bottling Group, Inc.+ 2,880 77,875
Reynolds American, Inc.+ 730 57,378
Brown-Forman Corp. -- Class B 990 48,193
Whole Foods Market, Inc.+ 390 37,187
Constellation Brands, Inc. --
Class A* 540 25,115
---------------
TOTAL COMMON STOCKS
(Cost $21,392,169) 24,308,373
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.3%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 81,259 81,259
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $81,259) 81,259
---------------
SECURITIES LENDING COLLATERAL 9.9%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 2,421,449 2,421,449
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,421,449) 2,421,449
---------------
TOTAL INVESTMENTS 109.7%
(Cost $23,894,877) $ 26,811,081
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (9.7)% $ (2,378,149)
===============
NET ASSETS - 100.0% $ 24,432,932
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
128 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
ELECTRONICS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Intel Corp. 61,096 $ 1,429,035
Texas Instruments, Inc.+ 29,669 730,451
Applied Materials, Inc.* 38,699 661,753
Micron Technology, Inc.*+ 30,544 377,218
Advanced Micro Devices, Inc.*+ 16,814 370,244
Broadcom Corp. -- Class A*+ 11,368 366,959
Lam Research Corp.*+ 11,992 346,689
Analog Devices, Inc. 8,642 319,063
KLA-Tencor Corp.* 6,653 309,897
Xilinx, Inc.+ 10,205 302,578
Altera Corp.* 12,928 267,610
Maxim Integrated Products, Inc. 6,206 263,072
National Semiconductor Corp.+ 13,986 251,049
Linear Technology Corp. 5,953 230,738
Varian Semiconductor Equipment
Associates, Inc.* 6,246 230,165
Nvidia Corp.* 9,584 225,799
Teradyne, Inc.*+ 12,188 208,049
Microchip Technology, Inc. 7,441 198,377
Novellus Systems, Inc.* 6,947 193,752
Cree, Inc.*+ 4,808 192,705
International Rectifier Corp.*+ 3,881 172,976
Rambus, Inc.* 7,393 170,039
PMC - Sierra, Inc.* 14,316 161,055
Fairchild Semiconductor
International, Inc.* 8,866 144,161
LSI Logic Corp.*+ 25,563 140,085
Amkor Technology, Inc.* 20,844 139,238
MEMC Electronic Materials, Inc.* 10,071 133,441
Atmel Corp.* 33,716 132,167
Cypress Semiconductor Corp.*+ 11,251 131,974
Agere Systems, Inc.-Class B* 96,183 129,847
Taiwan Semiconductor
Manufacturing Co. Ltd. - SP ADR 15,028 127,588
Applied Micro Circuits Corp.* 29,179 122,844
Intersil Corp. -- Class A 7,186 120,294
Integrated Circuit Systems, Inc.*+ 5,387 112,696
Cymer, Inc.*+ 3,781 111,691
Integrated Device Technology, Inc.* 9,658 111,646
Silicon Laboratories, Inc.* 3,124 110,308
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Semtech Corp.* 5,026 $ 109,919
RF Micro Devices, Inc.*+ 15,949 109,091
Photronics, Inc.* 6,502 107,283
Micrel, Inc.* 9,463 104,282
Dupont Photomasks, Inc.* 3,826 101,045
Cabot Microelectronics Corp.* 2,395 95,920
Skyworks Solutions, Inc.* 9,849 92,876
Brooks Automation, Inc.* 5,310 91,438
ATMI, Inc.* 4,030 90,796
Lattice Semiconductor Corp.* 15,681 89,382
Kulicke & Soffa Industries, Inc.* 10,043 86,571
Credence Systems Corp.* 9,089 83,164
Conexant Systems, Inc.* 41,024 81,638
Microsemi Corp.* 4,658 80,863
Triquint Semiconductor, Inc.* 17,780 79,121
Power Integrations, Inc.* 3,736 73,898
Helix Technology Corp. 4,077 70,899
Supertex, Inc.* 3,228 70,048
FEI Co.*+ 3,332 69,972
Ultratech, Inc.* 3,556 67,031
Actel Corp.* 3,689 64,705
Advanced Energy Industries, Inc.* 6,874 62,760
Axcelis Technologies, Inc.* 7,158 58,194
LTX Corp.* 7,484 57,552
Exar Corp.* 3,970 56,334
Cohu, Inc. 2,857 53,026
Standard Microsystems Corp.* 2,873 51,226
DSP Group, Inc.* 1,995 44,548
Rudolph Technologies, Inc.* 2,528 43,406
Kopin Corp.* 10,459 40,476
STMicroelectronics/NV 2,055 39,703
Pericom Semiconductor Corp.* 3,305 31,166
Tessera Technologies, Inc.* 773 28,763
Alliance Semiconductor Corp.* 7,767 28,738
ESS Technologies, Inc.* 3,378 24,017
Three-Five Systems, Inc.* 9,449 22,866
ASML Holding /NV* 1,267 20,158
Silicon Image, Inc.* 981 16,147
---------------
TOTAL COMMON STOCKS
(Cost $11,230,966) 12,246,275
---------------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 129
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
ELECTRONICS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 44,907 $ 44,907
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $44,907) 44,907
---------------
SECURITIES LENDING COLLATERAL 6.7%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 824,303 824,303
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $824,303) 824,303
---------------
TOTAL INVESTMENTS 106.7%
(Cost $12,100,176) $ 13,115,485
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.7)% $ (826,155)
===============
NET ASSETS - 100.0% $ 12,289,330
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
130 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
ENERGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.4%
Exxon Mobil Corp. 82,205 $ 4,213,828
BP PLC - SP ADR 49,650 2,899,560
ChevronTexaco Corp.+ 48,140 2,527,831
ConocoPhillips 28,519 2,476,305
Total SA - SP ADR+ 21,610 2,373,642
Royal Dutch Petroleum Co.+ 36,610 2,100,682
Occidental Petroleum Corp. 28,680 1,673,765
Shell Transport & Trading Co.
PLC - SP ADR 32,425 1,666,645
Devon Energy Corp. 42,476 1,653,166
El Paso Corp.+ 123,348 1,282,819
Amerada Hess Corp.+ 15,140 1,247,233
Valero Energy Corp.+ 27,440 1,245,776
Marathon Oil Corp. 32,675 1,228,907
Weatherford International Ltd.*+ 23,746 1,218,170
Anadarko Petroleum Corp. 18,337 1,188,421
Transocean, Inc.*+ 27,312 1,157,756
Premcor, Inc. 25,560 1,077,865
Halliburton Co. 27,123 1,064,307
Pogo Producing Co. 21,200 1,027,988
Tidewater, Inc.+ 28,296 1,007,621
Grant Prideco, Inc.*+ 48,754 977,518
Burlington Resources, Inc.+ 22,100 961,350
Schlumberger Ltd. 13,830 925,918
Forest Oil Corp.*+ 28,850 915,122
Hanover Compressor Co.*+ 62,220 879,169
Stone Energy Corp.* 19,095 860,994
Repsol YPF SA - SP ADR+ 32,407 845,823
Murphy Oil Corp.+ 9,800 788,410
Diamond Offshore Drilling, Inc.+ 18,710 749,335
Apache Corp. 14,228 719,510
Atwood Oceanics, Inc.* 13,734 715,541
BJ Services Co.+ 15,200 707,408
W-H Energy Services, Inc.* 31,248 698,705
Veritas DGC, Inc.*+ 29,909 670,261
Baker Hughes, Inc.+ 15,454 659,422
Todco -- Class A* 35,471 653,376
Provident Energy Trust+ 63,800 604,824
Unit Corp.*+ 15,711 600,317
Oceaneering International, Inc.* 16,020 597,866
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Universal Compression
Holdings, Inc.* 16,240 $ 566,938
Petro-Canada 10,893 555,761
Grey Wolf, Inc.* 104,154 548,892
Chesapeake Energy Corp.+ 32,355 533,857
Cimarex Energy Co.*+ 12,699 481,292
Precision Drilling Corp.*+ 7,420 465,976
Vintage Petroleum, Inc. 20,423 463,398
Unocal Corp. 10,510 454,452
Cooper Cameron Corp.*+ 8,200 441,242
Magnum Hunter Resources, Inc.* 34,032 439,013
Offshore Logistics, Inc.* 13,414 435,553
Houston Exploration Co.*+ 7,400 416,694
Newfield Exploration Co.* 7,020 414,531
Spinnaker Exploration Co.* 10,400 364,728
Remington Oil & Gas Corp.*+ 13,190 359,428
National-Oilwell, Inc.*+ 9,880 348,665
Swift Energy Co.* 11,370 329,048
Overseas Shipholding Group, Inc.+ 5,924 327,005
Frontier Oil Corp. 10,845 289,128
Southwestern Energy Co.* 5,598 283,763
Sunoco, Inc.+ 3,403 278,059
Tesoro Corp.* 8,355 266,190
Frontline, Ltd. 5,660 251,078
Hydril* 5,416 246,482
Ashland, Inc. 4,198 245,079
Canadian Natural Resources Ltd. 5,000 213,850
Petrofund Energy Trust 14,300 186,472
Williams Cos., Inc.+ 11,360 185,054
Nabors Industries Ltd.* 2,860 146,689
PetroKazakhstan, Inc.-- Class A 3,491 129,516
EOG Resources, Inc.+ 1,795 128,091
Kinder Morgan, Inc. 1,720 125,784
Kerr-McGee Corp. 2,084 120,434
XTO Energy, Inc.+ 3,367 119,124
General Maritime Corp* 1,750 69,913
Ship Finance International Ltd. 2,454 50,356
Cal Dive International, Inc.* 7 285
---------------
TOTAL COMMON STOCKS
(Cost $50,715,362) 60,144,976
---------------
See Notes to Financial Statements.
THE RYDEX variable trust annual report | 131
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
ENERGY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 308,565 $ 308,565
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $308,565) 308,565
---------------
SECURITIES LENDING COLLATERAL 18.2%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 11,003,535 11,003,535
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $11,003,535) 11,003,535
---------------
TOTAL INVESTMENTS 118.1%
(Cost $62,027,462) $ 71,457,076
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.1)% $ (10,956,414)
===============
NET ASSETS - 100.0% $ 60,500,662
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
132 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Schlumberger Ltd.+ 35,696 $ 2,389,847
Halliburton Co. 48,290 1,894,900
Transocean, Inc.*+ 42,535 1,803,059
Baker Hughes, Inc.+ 36,106 1,540,643
Weatherford International Ltd.*+ 26,330 1,350,729
BJ Services Co.+ 27,274 1,269,332
Diamond Offshore Drilling, Inc.+ 27,373 1,096,289
Nabors Industries Ltd.* 20,072 1,029,493
Tidewater, Inc.+ 27,237 969,910
ENSCO International, Inc.+ 28,323 898,972
Noble Corp.*+ 16,691 830,210
Hanover Compressor Co.*+ 58,684 829,205
Grant Prideco, Inc.*+ 40,740 816,837
Smith International, Inc.* 14,719 800,861
National-Oilwell, Inc.*+ 22,445 792,084
Cooper Cameron Corp.*+ 14,504 780,460
Patterson-UTI Energy, Inc. 36,768 715,138
Unit Corp.*+ 17,349 662,905
Varco International, Inc.* 21,962 640,192
Oceaneering International, Inc.* 15,958 595,553
Rowan Cos., Inc.* 21,885 566,821
SEACOR Holdings, Inc.* 9,652 515,417
Veritas DGC, Inc.*+ 20,803 466,195
Atwood Oceanics, Inc.* 8,435 439,463
Lone Star Technologies, Inc.* 13,004 435,114
Maverick Tube Corp.*+ 14,352 434,866
Hydril* 9,217 419,466
Cal Dive International, Inc.*+ 9,985 406,889
W-H Energy Services, Inc.* 18,074 404,135
Offshore Logistics, Inc.* 12,354 401,134
Pride International, Inc.*+ 18,324 376,375
Todco -- Class A* 20,166 371,458
Input/Output, Inc.*+ 34,900 308,516
FMC Technologies, Inc.* 9,222 296,948
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CARBO Ceramics, Inc. 4,279 $ 295,251
Universal Compression
Holdings, Inc.* 7,532 262,942
Helmerich & Payne, Inc. 7,083 241,105
Precision Drilling Corp.*+ 3,122 196,062
Grey Wolf, Inc.* 30,141 158,843
Tetra Technologies, Inc.* 4,675 132,302
Stolt Offshore SA - SP ADR* 15,270 99,255
Global Industries, Ltd.* 10,980 91,024
NS Group, Inc.* 2,910 80,898
Dril-Quip, Inc.* 2,986 72,440
---------------
TOTAL COMMON STOCKS
(Cost $24,169,512) 29,179,538
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 200,852 200,852
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $200,852) 200,852
---------------
SECURITIES LENDING COLLATERAL 17.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 5,212,067 5,212,067
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,212,067) 5,212,067
---------------
TOTAL INVESTMENTS 118.0%
(Cost $29,582,431) $ 34,592,457
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.0)% $ (5,275,972)
===============
NET ASSETS - 100.0% $ 29,316,485
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 133
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Citigroup, Inc. 31,850 $ 1,534,533
J.P. Morgan Chase & Co. 30,751 1,199,596
American Express Co. 15,926 897,749
National City Corp. 23,214 871,686
Fifth Third Bancorp+ 18,300 865,224
Bank of New York Co., Inc. 25,883 865,010
KeyCorp 23,914 810,685
Progressive Corp. 9,509 806,744
Chubb Corp.+ 10,370 797,453
Principal Financial Group, Inc. 19,359 792,557
Vornado Realty Trust+ 10,257 780,865
Comerica, Inc.+ 12,412 757,380
Sovereign Bancorp, Inc. 33,569 756,981
Huntington Bancshares, Inc.+ 29,398 728,482
MGIC Investment Corp.+ 10,460 720,799
Zions Bancorporation 10,581 719,825
Mills Corp. 11,222 715,515
Public Storage, Inc. 12,822 714,826
Genworth Financial, Inc. -- Class A 26,295 709,965
Old Republic International Corp. 27,926 706,528
Apartment Investment &
Management Co. -- Class A 18,298 705,205
Duke Realty Corp. 20,463 698,607
W.R. Berkley Corp. 14,745 695,522
Student Loan Corp. 3,771 693,864
Health Care Property Investors, Inc. 24,898 689,426
Associated Banc-Corp. 20,674 686,584
PMI Group, Inc.+ 16,358 682,946
People's Bank/Bridgeport CT 17,535 681,936
CBL & Associates Properties, Inc. 8,729 666,459
SL Green Realty Corp. 10,954 663,265
Colonial BancGroup, Inc. 31,176 661,866
MBNA Corp. 23,408 659,871
Ventas, Inc. 24,027 658,580
Riggs National Corp. 30,886 656,636
Odyssey Re Holdings Corp.+ 25,975 654,830
Whitney Holding Corp. 14,538 654,065
American Financial Group, Inc./OH 20,777 650,528
Nationwide Financial Services, Inc. 16,862 644,634
AmerUs Group Co. 14,122 639,727
Bankunited Financial Corp. --
Class A* 19,921 636,476
Lexington Corporate Properties
Trust 27,907 630,140
Webster Financial Corp. 12,400 627,936
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Commercial Federal Corp. 21,029 $ 624,772
Downey Financial Corp. 10,949 624,093
Moody's Corp.+ 7,098 616,461
Selective Insurance Group, Inc. 13,920 615,821
FirstFed Financial Corp.* 11,788 611,444
Greater Bay Bancorp 21,860 609,457
Kookmin Bank - SP ADR* 15,282 597,221
Stewart Information Services Corp. 14,006 583,350
Colonial Properties Trust+ 14,748 579,154
Manulife Financial Corp. 12,402 572,972
UBS AG 6,729 564,159
Capital One Financial Corp.+ 6,503 547,618
PartnerRe Ltd. 8,824 546,559
Mellon Financial Corp. 16,232 504,978
Susquehanna Bancshares, Inc. 18,630 464,818
State Street Corp. 8,944 439,329
Hudson United Bancorp 10,689 420,933
Eaton Vance Corp. 7,708 401,972
HCC Insurance Holdings, Inc.+ 10,043 332,624
Bank of America Corp. 7,000 328,930
Presidential Life Corp. 18,082 306,671
Charles Schwab Corp.+ 25,544 305,506
Chicago Mercantile Exchange
Holdings, Inc.+ 1,173 268,265
American International Group, Inc.+ 3,722 244,424
Nuveen Investments, Inc. -- Class A 5,440 214,717
Franklin Resources, Inc.+ 2,790 194,323
SLM Corp.+ 3,603 192,364
LandAmerica Financial Group, Inc. 3,513 189,456
First Marblehead Corp.* 2,612 146,925
ING Groep NV - SP ADR 3,925 118,731
Wells Fargo & Co. 1,579 98,135
MoneyGram International, Inc. 4,046 85,532
Bear Stearns Cos., Inc.+ 820 83,894
American Capital Strategies, Ltd. 2,440 81,374
Legg Mason, Inc.+ 971 71,135
Assurant, Inc.+ 2,303 70,357
Investors Financial Services Corp.+ 1,143 57,127
Loews Corp. 707 49,702
AmeriCredit Corp.* 1,992 48,704
Blackrock, Inc. 610 47,129
Piper Jaffray Cos., Inc.* 967 46,368
AMB Property Corp. 1,036 41,844
---------------
TOTAL COMMON STOCKS
(Cost $42,797,957) 44,940,854
---------------
See Notes to Financial Statements.
134 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 423,930 $ 423,930
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $423,930) 423,930
---------------
SECURITIES LENDING COLLATERAL 6.6%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 2,969,265 2,969,265
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,969,265) 2,969,265
---------------
TOTAL INVESTMENTS 107.0%
(Cost $46,191,152) $ 48,334,049
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (7.0)% $ (3,154,350)
===============
NET ASSETS - 100.0% $ 45,179,699
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT |135
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.1%
Pfizer, Inc. 85,508 $ 2,299,310
Johnson & Johnson, Inc. 29,861 1,893,785
Abbott Laboratories 28,304 1,320,382
UnitedHealth Group, Inc.+ 11,267 991,834
Bristol-Myers Squibb Co.+ 36,851 944,123
Wyeth+ 20,920 890,983
Eli Lilly & Co. 15,525 881,044
Genentech, Inc.*+ 16,021 872,183
Amgen, Inc.*+ 12,995 833,629
Boston Scientific Corp.* 22,031 783,202
Caremark Rx, Inc.*+ 17,273 681,074
Medtronic, Inc. 13,651 678,045
Merck & Co., Inc. 21,065 677,029
Aetna, Inc. 5,411 675,022
Cardinal Health, Inc. 10,114 588,129
Genzyme Corp.* 9,396 545,626
Gilead Sciences, Inc.* 15,387 538,391
CIGNA Corp. 6,130 500,024
Allergan, Inc.+ 5,845 473,854
Forest Laboratories, Inc.*+ 10,155 455,553
St. Jude Medical, Inc.* 10,551 442,403
Zimmer Holdings, Inc.*+ 5,296 424,316
HCA, Inc. 10,269 410,349
Becton, Dickinson & Co. 5,841 331,769
Express Scripts, Inc.*+ 4,152 317,379
Schering AG - SP ADR 4,199 311,776
Biogen Idec, Inc.*+ 4,590 305,740
Kinetic Concepts, Inc.* 3,792 289,330
Pacificare Health Systems, Inc.* 5,110 288,817
Quest Diagnostics, Inc.+ 3,010 287,605
Patterson Cos., Inc.*+ 6,433 279,128
C.R. Bard, Inc. 4,294 274,730
IMS Health, Inc. 11,185 259,604
Fisher Scientific International, Inc.*+ 4,042 252,140
DENTSPLY International, Inc. 4,462 250,764
Biomet, Inc. 5,433 235,738
Celgene Corp.*+ 8,655 229,617
Applera Corp. - Applied Biosystems
Group 10,955 229,069
Laboratory Corporation of America
Holdings*+ 4,545 226,432
Elan Corp. PLC -SP ADR* 8,142 221,869
ImClone Systems, Inc.*+ 4,572 210,678
Hillenbrand Industries, Inc. 3,719 206,553
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.*+ 16,715 $ 202,586
Bausch & Lomb, Inc. 3,012 194,154
PerkinElmer, Inc. 8,261 185,790
Schering-Plough Corp.+ 8,754 182,784
Henry Schein, Inc.*+ 2,570 178,975
Invitrogen Corp.*+ 2,554 171,450
Hospira, Inc.* 5,086 170,381
Coventry Health Care, Inc.*+ 3,197 169,697
Edwards Lifesciences Corp.* 4,082 168,423
WebMD Corp.* 20,091 163,943
Varian Medical Systems, Inc.*+ 3,698 159,902
Covance, Inc.* 4,052 157,015
Dade Behring Holdings, Inc.*+ 2,720 152,320
Millipore Corp.* 3,052 152,020
Affymetrix, Inc.*+ 4,025 147,114
Humana, Inc.*+ 4,835 143,551
Amylin Pharmaceuticals, Inc.* 6,134 143,290
Altana AG - SP ADR 2,173 136,899
DaVita, Inc.* 3,430 135,588
Cerner Corp.*+ 2,550 135,584
Omnicare, Inc.+ 3,855 133,460
Beckman Coulter, Inc. 1,986 133,042
WellChoice, Inc.* 2,480 132,432
Manor Care, Inc. 3,315 117,450
Health Management Associates,
Inc. -- Class A+ 5,000 113,600
Andrx Corp.* 4,936 107,753
Sierra Health Services, Inc.* 1,932 106,473
Par Pharmaceutical Cos., Inc.* 2,572 106,429
Varian, Inc.* 2,570 105,396
Pharmaceutical Product
Development, Inc.* 2,466 101,821
Novo-Nordisk A/S - SP ADR 1,876 101,792
Health Net, Inc.* 3,480 100,468
Invacare Corp. 2,140 98,996
Serono SA - SP ADR+ 5,890 96,125
Centene Corp.* 3,198 90,663
Universal Health Services, Inc. --
Class B 2,010 89,445
American Healthways, Inc.* 2,649 87,523
Stryker Corp. 1,789 86,319
WellPoint, Inc.* 750 86,250
Baxter International, Inc. 2,455 84,796
Biosite, Inc.*+ 1,336 82,217
Sola International, Inc.* 2,895 79,728
See Notes to Financial Statements.
136 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Haemonetics Corp./MA*+ 2,052 $ 74,303
Chemed Corp. 1,063 71,338
Vertex Pharmaceuticals, Inc.*+ 6,555 69,286
Dendrite International, Inc.* 3,520 68,288
Community Health Systems, Inc.* 2,449 68,278
Immucor, Inc.* 2,820 66,298
Priority Healthcare Corp. --
Class B* 3,010 65,528
ArthroCare Corp.* 1,920 61,555
Analogic Corp. 1,343 60,153
Conmed Corp.* 2,108 59,909
Mentor Corp. 1,660 56,008
Pediatrix Medical Group, Inc.* 850 54,443
RehabCare Group, Inc.* 1,697 47,499
Regeneron Pharmaceuticals, Inc.* 5,145 47,385
---------------
TOTAL COMMON STOCKS
(Cost $25,671,107) 30,172,943
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 138,842 138,842
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $138,842) 138,842
---------------
SECURITIES LENDING COLLATERAL 12.7%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 3,854,239 3,854,239
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,854,239) 3,854,239
---------------
TOTAL INVESTMENTS 112.3%
(Cost $29,664,188) $ 34,166,024
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.3)% $ (3,730,710)
===============
NET ASSETS - 100.0% $ 30,435,314
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 137
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
INTERNET FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Cisco Systems, Inc.* 168,958 $ 3,260,889
Qualcomm, Inc. 58,332 2,473,277
Yahoo!, Inc.*+ 64,747 2,439,667
Time Warner, Inc.*+ 125,285 2,435,540
eBay, Inc.*+ 20,285 2,358,740
Amazon.com, Inc.*+ 36,549 1,618,755
Juniper Networks, Inc.*+ 55,095 1,498,033
Research In Motion Ltd.*+ 13,433 1,107,148
Qwest Communications
International, Inc.* 239,996 1,065,582
Sun Microsystems, Inc.* 182,643 982,619
TIBCO Software, Inc.*+ 73,450 979,823
InterActiveCorp*+ 32,406 895,054
E*Trade Financial Corp.*+ 58,224 870,449
Symantec Corp.*+ 33,324 858,426
F5 Networks, Inc.* 16,130 785,854
EarthLink, Inc.*+ 65,211 751,231
McAfee, Inc.*+ 25,107 726,345
Red Hat, Inc.*+ 53,871 719,178
VeriSign, Inc.*+ 20,476 686,356
Websense, Inc.* 12,740 646,173
United Online, Inc.* 55,530 640,261
DoubleClick, Inc.*+ 82,260 639,983
WebMD Corp.* 71,246 581,367
Broadcom Corp. -- Class A*+ 16,814 542,756
BEA Systems, Inc.* 61,184 542,090
Ask Jeeves, Inc.*+ 20,080 537,140
PalmOne, Inc.*+ 16,001 504,832
Check Point Software Technologies
Ltd.*+ 18,573 457,453
Monster Worldwide, Inc.*+ 13,367 449,666
CheckFree Corp.*+ 11,334 431,599
Jupitermedia Corp.* 17,960 427,089
Intuit, Inc.*+ 9,423 414,706
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Verity, Inc.* 30,960 $ 406,195
Akamai Technologies, Inc.* 29,400 383,082
ValueClick, Inc.* 28,500 379,905
Netflix, Inc.*+ 30,580 377,051
Siebel Systems, Inc.* 35,635 374,167
NetBank, Inc. 35,370 368,202
Digital Insight Corp.* 16,470 303,048
Macromedia, Inc.*+ 8,820 274,478
CNET Networks, Inc.*+ 17,720 198,996
Foundry Networks, Inc.* 12,380 162,921
Audible, Inc.* 3,960 103,158
CIENA Corp.* 25,420 84,903
---------------
TOTAL COMMON STOCKS
(Cost $29,236,360) 36,744,187
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 243,854 243,854
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $243,854) 243,854
---------------
SECURITIES LENDING COLLATERAL 24.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 9,104,697 9,104,697
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $9,104,697) 9,104,697
---------------
TOTAL INVESTMENTS 124.8%
(Cost $38,584,911) $ 46,092,738
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (24.8)% $ (9,170,813)
===============
NET ASSETS - 100.0% $ 36,921,925
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
138 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
LEISURE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Time Warner, Inc.*+ 160,502 $ 3,120,159
Viacom, Inc. -- Class B 83,030 3,021,462
McDonald's Corp. 83,089 2,663,833
Walt Disney Co.+ 81,644 2,269,703
Electronic Arts, Inc.*+ 36,470 2,249,470
Marriott International, Inc. --
Class A 30,300 1,908,294
Yum! Brands, Inc.+ 38,295 1,806,758
Fox Entertainment Group, Inc. --
Class A* 57,262 1,790,010
Hilton Hotels Corp. 71,245 1,620,111
Harrah's Entertainment, Inc.+ 23,393 1,564,758
Carnival Corp.+ 26,313 1,516,418
Starbucks Corp.*+ 23,849 1,487,224
Caesars Entertainment, Inc.* 72,126 1,452,618
Brunswick Corp. 25,650 1,269,675
Mandalay Resort Group 17,800 1,253,654
Wendy's International, Inc. 31,189 1,224,480
Hasbro, Inc.+ 59,663 1,156,269
GTECH Holdings Corp. 44,384 1,151,765
Choice Hotels International, Inc. 18,498 1,072,884
Applebee's International, Inc. 39,680 1,049,536
Sonic Corp.* 34,340 1,047,370
International Game Technology, Inc. 30,076 1,034,013
International Speedway Corp. --
Class A 19,129 1,010,011
Krispy Kreme Doughnuts, Inc.*+ 78,155 984,753
Outback Steakhouse, Inc. 21,066 964,401
CEC Entertainment, Inc.* 23,796 951,126
Activision, Inc.* 46,965 947,754
Eastman Kodak Co.+ 29,075 937,669
Nautilus Group, Inc. 37,875 915,439
Jakks Pacific, Inc.*+ 41,135 909,495
Multimedia Games, Inc.* 57,245 902,181
Mattel, Inc. 35,244 686,905
4Kids Entertainment, Inc.* 32,608 685,420
Ruby Tuesday, Inc.+ 22,927 597,936
Starwood Hotels & Resorts
Worldwide, Inc.+ 9,412 549,661
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Jack in the Box, Inc.*+ 14,475 $ 533,693
Brinker International, Inc.*+ 14,842 520,509
MGM Mirage, Inc.*+ 6,240 453,898
Arctic Cat, Inc. 15,013 398,145
Ryan's Restaurant Group, Inc.* 22,850 352,347
Bally Total Fitness Holding Corp.* 63,066 267,400
Marcus Corp. 9,905 249,012
Wynn Resorts Ltd.*+ 2,700 180,684
Pixar*+ 1,760 150,674
THQ, Inc.* 5,280 121,123
Darden Restaurants, Inc. 4,096 113,623
Shuffle Master, Inc.*+ 2,060 97,026
Meade Instruments Corp.* 24,405 83,709
Polaris Industries, Inc. 922 62,714
Boyd Gaming Corp. 1,490 62,058
Station Casinos, Inc. 1,020 55,774
---------------
TOTAL COMMON STOCKS
(Cost $45,888,671) 51,475,604
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 282,580 282,580
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $282,580) 282,580
---------------
SECURITIES LENDING COLLATERAL 16.9%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 8,723,961 8,723,961
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,723,961) 8,723,961
---------------
TOTAL INVESTMENTS 116.9%
(Cost $54,895,212) $ 60,482,145
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (16.9)% $ (8,727,257)
===============
NET ASSETS - 100.0% $ 51,754,888
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 139
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.3%
Newmont Mining Corp.+ 109,886 $ 4,880,037
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 92,216 3,525,418
Barrick Gold Corp.+ 91,950 2,227,029
Placer Dome, Inc.+ 102,999 1,942,561
AngloGold Ashanti Ltd. - SP ADR+ 50,532 1,836,838
Gold Fields Ltd. - SP ADR+ 131,492 1,641,020
Goldcorp, Inc.+ 107,422 1,615,627
Harmony Gold Mining Co. Ltd. -
SP ADR+ 169,243 1,568,883
Pan American Silver Corp.* 74,078 1,183,766
Meridian Gold, Inc.* 61,198 1,160,926
Coeur d'Alene Mines Corp.*+ 288,067 1,132,103
Wheaton River Minerals Ltd.*+ 327,012 1,066,059
Kinross Gold Corp.*+ 151,041 1,063,329
Glamis Gold Ltd.* 61,098 1,048,442
Bema Gold Corp.*+ 325,881 997,196
Golden Star Resources Ltd.* 240,246 963,386
Agnico-Eagle Mines Ltd. 67,288 925,210
Stillwater Mining Co.* 81,712 920,077
Silver Standard Resources, Inc.*+ 74,710 903,095
Hecla Mining Co.* 147,480 859,808
Apex Silver Mines Ltd.* 47,647 818,575
DRDGOLD Ltd. - SP ADR*+ 516,926 796,066
Randgold Resources Ltd. - SP
ADR*+ 56,197 640,646
Cambior, Inc.* 210,859 562,994
Novagold Resources, Inc.* 68,072 527,558
---------------
TOTAL COMMON STOCKS
(Cost $28,644,179) 34,806,649
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 203,849 $ 203,849
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $203,849) 203,849
---------------
SECURITIES LENDING COLLATERAL 30.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 10,550,450 10,550,450
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $10,550,450) 10,550,450
---------------
TOTAL INVESTMENTS 130.0%
(Cost $39,398,478) $ 45,560,948
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (30.0)% $ (10,517,878)
===============
NET ASSETS - 100.0% $ 35,043,070
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
SEE NOTES TO FINANCIAL STATEMENTS.
140 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Simon Property Group, Inc.+ 10,433 $ 674,704
Equity Office Properties Trust 20,411 594,368
Equity Residential 16,391 593,026
Vornado Realty Trust+ 7,145 543,949
ProLogis 11,706 507,221
General Growth Properties, Inc. 13,737 496,730
Plum Creek Timber (REIT) Co., Inc. 12,095 464,932
Boston Properties, Inc. 7,156 462,779
Archstone-Smith Trust+ 11,911 456,191
Public Storage, Inc. 8,084 450,683
Host Marriott Corp.+ 25,910 448,243
AvalonBay Communities, Inc.+ 5,794 436,288
KIMCO Realty Corp. 7,495 434,635
St Joe Co.+ 6,530 419,226
iStar Financial, Inc. 8,420 381,089
Developers Diversified Realty
Corp.+ 8,475 376,036
Duke Realty Corp. 10,857 370,658
Regency Centers Corp. 6,230 345,142
United Dominion Realty Trust, Inc. 13,896 344,621
Mills Corp.+ 5,370 342,391
Macerich Co. 5,383 338,052
Weingarten Realty Investors 8,355 335,035
AMB Property Corp.+ 8,143 328,896
Liberty Property Trust 7,563 326,722
Apartment Investment &
Management Co. -- Class A 8,467 326,318
Health Care Property Investors, Inc. 11,684 323,530
Hospitality Properties Trust 6,632 305,072
Pan Pacific Retail Properties, Inc. 4,789 300,270
Catellus Development Corp. 9,750 298,350
Arden Realty, Inc.+ 7,461 281,429
Federal Realty Investment Trust 5,436 280,769
Trizec Properties, Inc. 14,830 280,584
Friedman Billings Ramsey Group,
Inc. -- Class A+ 14,260 276,501
Reckson Associates Realty Corp. 8,394 275,407
CBL & Associates Properties, Inc. 3,581 273,409
SL Green Realty Corp. 4,490 271,869
Mack-Cali Realty Corp. 5,878 270,564
CenterPoint Properties Trust 5,640 270,100
Camden Property Trust 5,270 268,770
Realty Income Corp. 5,282 267,164
HRPT Properties Trust 20,660 265,068
New Plan Excel Realty Trust 9,768 264,517
Essex Property Trust, Inc. 3,070 257,266
Crescent Real Estate EQT Co.+ 13,954 254,800
Annaly Mortgage Management, Inc.+ 12,940 253,883
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Rayonier, Inc. 5,190 $ 253,843
Ventas, Inc. 9,220 252,720
Thornburg Mortgage, Inc.+ 8,672 251,141
First Industrial Realty Trust, Inc. 5,949 242,303
Shurgard Storage Centers, Inc. --
Class A 5,490 241,615
Healthcare Realty Trust, Inc. 5,870 238,909
BRE Properties -- Class A 5,854 235,975
Forest City Enterprises, Inc. --
Class A 4,018 231,236
Health Care REIT, Inc. 6,006 229,129
Highwoods Properties, Inc. 8,049 222,957
Nationwide Health Properties, Inc. 9,303 220,946
Alexandria Real Estate Equities, Inc. 2,968 220,879
Washington Real Estate Investment
Trust 6,381 216,124
Home Properties, Inc. 4,936 212,248
Prentiss Properties Trust 5,437 207,693
Capital Automotive REIT 5,792 205,761
Taubman Centers, Inc. 6,804 203,780
Brandywine Realty Trust 6,836 200,910
CarrAmerica Realty Corp. 6,053 199,749
Entertainment Properties Trust 4,436 197,624
Cousins Properties, Inc. 6,449 195,211
Pennsylvania Real Estate Investment
Trust 4,534 194,055
Commercial Net Lease Realty 9,290 191,374
Lexington Corporate Properties
Trust 8,339 188,295
Kilroy Realty Corp. 4,393 187,801
PS Business Parks, Inc. 4,148 187,075
Gables Residential Trust 5,133 183,710
Heritage Property Investment Trust 5,538 177,714
Summit Properties, Inc. 5,426 176,671
Meristar Hospitality Corp.* 21,072 175,951
FelCor Lodging Trust, Inc.* 11,993 175,697
Colonial Properties Trust 4,373 171,728
Post Properties, Inc. 4,901 171,045
Glimcher Realty Trust 5,980 165,706
Corporate Office Properties Trust
SBI/MD 5,614 164,771
LaSalle Hotel Properties 5,166 164,434
Sun Communities, Inc. 3,944 158,746
Sovran Self Storage, Inc. 3,641 153,432
Kramont Realty Trust 6,428 150,415
Equity Lifestyle Properties, Inc. 4,185 149,614
Eastgroup Properties 3,892 149,141
National Health Investors, Inc. 5,092 148,585
Saul Centers, Inc. 3,768 144,126
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 141
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Equity Inns, Inc. 12,221 $ 143,475
Mid-America Apartment
Communities, Inc. 3,425 141,178
AMLI Residential Properties Trust 4,390 140,480
Tanger Factory Outlet Centers, Inc. 5,296 140,132
Parkway Properties, Inc./MD 2,672 135,604
Glenborough Realty Trust, Inc. 6,339 134,894
CRT Properties, Inc. 5,579 133,115
Ramco-Gershenson Properties 4,071 131,290
Innkeepers USA Trust 9,116 129,447
Cornerstone Realty Income
Trust, Inc. 11,668 116,447
Town & Country Trust 4,170 115,217
US Restaurant Properties, Inc. 6,221 112,351
Winston Hotels, Inc. 8,901 105,121
Bedford Property Investors, Inc. 3,670 104,265
Correctional Properties Trust 3,497 100,993
Urstadt Biddle Properties, Inc. 5,170 88,149
Associated Estates Realty Corp. 6,452 65,939
---------------
TOTAL COMMON STOCKS
(Cost $21,734,449) 26,786,193
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.1%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 41,842 41,842
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $41,842) 41,842
---------------
SECURITIES LENDING COLLATERAL 9.1%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 2,438,689 2,438,689
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,438,689) 2,438,689
---------------
TOTAL INVESTMENTS 108.7%
(Cost $24,214,980) $ 29,266,724
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (8.7)% $ (2,351,533)
===============
NET ASSETS - 100.0% $ 26,915,191
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
REIT - REAL ESTATE INVESTMENT TRUST.
SEE NOTES TO FINANCIAL STATEMENTS.
142 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
RETAILING FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.4%
Wal-Mart Stores, Inc. 28,040 $ 1,481,073
Home Depot, Inc. 25,070 1,071,492
eBay, Inc.*+ 9,045 1,051,753
Lowe's Cos., Inc.+ 13,828 796,354
Target Corp. 13,063 678,362
Costco Wholesale Corp.+ 13,110 634,655
InterActiveCorp*+ 22,590 623,936
Amazon.com, Inc.*+ 13,535 599,465
The Gap, Inc.+ 28,015 591,677
Staples, Inc.+ 17,284 582,644
TJX Cos., Inc.+ 21,225 533,384
JC Penney Holding Co., Inc.+ 12,264 507,730
AutoZone, Inc.*+ 5,135 468,877
Nordstrom, Inc. 9,720 454,216
Chico's FAS, Inc.*+ 9,549 434,766
Abercrombie & Fitch Co. -- Class A 9,075 426,071
Office Depot, Inc.*+ 24,525 425,754
Sherwin-Williams Co. 9,320 415,952
American Eagle Outfitters, Inc. 8,288 390,365
Weight Watchers International,
Inc.*+ 9,500 390,165
Walgreen Co. 9,240 354,539
OfficeMax, Inc.+ 11,009 345,462
Sears Roebuck and Co.+ 6,718 342,819
Regis Corp. 7,324 338,003
Rent-A-Center, Inc.* 12,570 333,105
Urban Outfitters, Inc.* 7,290 323,676
Aeropostale, Inc.* 10,940 321,964
Claire's Stores, Inc. 15,069 320,216
Insight Enterprises, Inc.* 14,477 297,068
Movie Gallery, Inc.+ 15,120 288,338
Building Material Holding Corp. 7,378 282,504
Select Comfort Corp.* 14,074 252,487
Kmart Holding Corp.*+ 2,465 243,912
Foot Locker, Inc. 8,600 231,598
Advanced Marketing Services, Inc. 22,122 222,547
BJ's Wholesale Club, Inc.*+ 7,549 219,902
NeighborCare, Inc.* 7,130 219,034
Pacific Sunwear of California, Inc.*+ 9,510 211,693
PETCO Animal Supplies, Inc.* 5,340 210,823
United Auto Group, Inc. 7,070 209,201
Bed Bath & Beyond, Inc.*+ 5,053 201,261
Sonic Automotive, Inc. 8,100 200,880
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ShopKo Stores, Inc.* 10,434 $ 194,907
AutoNation, Inc.*+ 10,070 193,445
Best Buy Co., Inc. 3,101 184,261
Bebe Stores, Inc. 6,660 179,687
CVS Corp. 3,950 178,026
Petsmart, Inc.+ 4,551 161,697
Kohl's Corp.*+ 2,894 142,298
Too, Inc.* 5,700 139,422
Netflix, Inc.*+ 10,140 125,026
Federated Department Stores, Inc. 1,735 100,266
Limited Brands, Inc. 4,299 98,963
Talbots, Inc. 3,630 98,845
Aaron Rents, Inc. 3,580 89,500
May Department Stores Co.+ 2,152 63,269
Genuine Parts Co. 1,180 51,991
Payless Shoesource, Inc.* 2,540 31,242
Coldwater Creek, Inc.* 940 29,018
WESCO International, Inc.* 940 27,862
RadioShack Corp.+ 680 22,358
Dollar General Corp. 1,000 20,770
Christopher & Banks Corp.+ 950 17,527
---------------
TOTAL COMMON STOCKS
(Cost $16,850,399) 20,680,103
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 75,212 75,212
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $75,212) 75,212
---------------
SECURITIES LENDING COLLATERAL 19.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 3,955,244 3,955,244
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,955,244) 3,955,244
---------------
TOTAL INVESTMENTS 118.8%
(Cost $20,880,855) $ 24,710,559
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.8)% $ (3,910,170)
===============
NET ASSETS - 100.0% $ 20,800,389
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 143
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Microsoft Corp. 62,822 $ 1,677,976
Intel Corp. 45,394 1,061,766
Cisco Systems, Inc.* 50,671 977,950
Dell, Inc.* 22,870 963,742
International Business Machines
Corp. 9,246 911,471
Oracle Corp.* 59,698 819,057
Hewlett-Packard Co. 30,977 649,588
Motorola, Inc.+ 31,588 543,314
Qualcomm, Inc. 11,568 490,483
EMC Corp./MA* 29,750 442,382
Yahoo!, Inc.*+ 11,150 420,132
Applied Materials, Inc.*+ 22,622 386,836
Computer Associates International,
Inc.+ 11,733 364,427
Texas Instruments, Inc.+ 14,346 353,199
First Data Corp. 8,111 345,042
Lucent Technologies, Inc.*+ 89,396 336,129
Adobe Systems, Inc. 3,595 225,550
Xerox Corp.*+ 12,706 216,129
Apple Computer, Inc.* 3,352 215,869
Broadcom Corp. -- Class A*+ 6,398 206,527
Fiserv, Inc.*+ 4,786 192,349
Agilent Technologies, Inc.* 7,817 188,390
Micron Technology, Inc.*+ 14,797 182,743
Symantec Corp.*+ 6,960 179,290
Computer Sciences Corp.*+ 3,008 169,561
Electronic Data Systems Corp. 6,681 154,331
Veritas Software Corp.* 5,361 153,057
Sun Microsystems, Inc.* 26,715 143,727
National Semiconductor Corp.+ 7,820 140,369
Comverse Technology, Inc.*+ 5,649 138,118
KLA-Tencor Corp.* 2,912 135,641
Solectron Corp.*+ 25,416 135,467
McAfee, Inc.*+ 4,636 134,119
Paychex, Inc. 3,672 125,142
Lam Research Corp.*+ 4,120 119,109
Advanced Micro Devices, Inc.*+ 5,291 116,508
Autodesk, Inc. 2,994 113,622
Alliance Data Systems Corp.* 2,379 112,955
Juniper Networks, Inc.*+ 3,990 108,488
Cadence Design Systems, Inc.*+ 7,783 107,483
CheckFree Corp.*+ 2,782 105,939
Ingram Micro, Inc. -- Class A* 4,916 102,253
BEA Systems, Inc.* 11,258 99,746
Automatic Data Processing, Inc. 2,239 99,300
Amphenol Corp. -- Class A* 2,680 98,463
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TIBCO Software, Inc.*+ 7,230 $ 96,448
Molex, Inc. 3,030 90,900
Sabre Holdings Corp.+ 4,045 89,637
BMC Software, Inc.* 4,741 88,183
SunGard Data Systems, Inc.* 3,085 87,398
Sandisk Corp.* 3,420 85,397
Cognizant Technology Solutions
Corp.*+ 2,016 85,337
Synopsys, Inc.* 4,188 82,169
Novell, Inc.*+ 12,093 81,628
Novellus Systems, Inc.*+ 2,825 78,789
Cree, Inc.*+ 1,940 77,755
Western Digital Corp.* 7,050 76,422
Red Hat, Inc.*+ 5,581 74,506
Microchip Technology, Inc. 2,776 74,008
Siebel Systems, Inc.* 6,772 71,106
Teradyne, Inc.*+ 4,051 69,151
Hyperion Solutions Corp.* 1,436 66,946
Iron Mountain, Inc.* 2,175 66,316
CACI International, Inc. -- Class A* 960 65,405
Jabil Circuit, Inc.* 2,521 64,487
QLogic Corp.*+ 1,749 64,241
Freescale Semiconductor, Inc. --
Class B* 3,483 63,948
Semtech Corp.* 2,689 58,808
Silicon Laboratories, Inc.* 1,660 58,615
Parametric Technology Corp.*+ 9,842 57,969
Kronos, Inc./MA* 1,130 57,777
Akamai Technologies, Inc.* 4,339 56,537
Reynolds & Reynolds Co. -- Class A 2,086 55,300
BearingPoint, Inc.* 6,830 54,845
Zebra Technologies Corp. --
Class A* 973 54,760
PMC - Sierra, Inc.*+ 4,860 54,675
Skyworks Solutions, Inc.* 5,635 53,138
Benchmark Electronics, Inc.* 1,550 52,855
Tellabs, Inc.*+ 6,147 52,803
Nvidia Corp.* 2,240 52,774
Ask Jeeves, Inc.*+ 1,946 52,055
Varian Semiconductor Equipment
Associates, Inc.* 1,396 51,443
Macrovision Corp.*+ 1,880 48,354
Websense, Inc.* 903 45,800
NCR Corp.* 660 45,692
Dionex Corp.* 800 45,336
Utstarcom, Inc.* 2,042 45,230
Filenet Corp.* 1,716 44,204
Flir Systems, Inc.* 690 44,015
See Notes to Financial Statements.
144 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Fairchild Semiconductor
International, Inc.* 2,690 $ 43,739
Wind River Systems, Inc.* 3,200 43,360
Avaya, Inc.*+ 2,500 43,000
Microsemi Corp.* 2,470 42,879
Cymer, Inc.* 1,446 42,715
Plantronics, Inc. 1,014 42,051
WebEx Communications, Inc.*+ 1,754 41,710
Cypress Semiconductor Corp.*+ 3,540 41,524
Hewitt Associates, Inc. -- Class A* 1,296 41,485
DST Systems, Inc.* 780 40,654
Trimble Navigation Ltd.* 1,226 40,507
Micrel, Inc.*+ 3,675 40,498
Cabot Microelectronics Corp.* 1,010 40,450
Coherent, Inc.* 1,300 39,572
Global Imaging Systems, Inc.* 1,000 39,500
Powerwave Technologies, Inc.* 4,630 39,262
Aeroflex, Inc.* 3,130 37,936
Agere Systems, Inc.-Class B* 28,070 37,894
Andrew Corp.* 2,760 37,619
Anixter International, Inc.*+ 1,033 37,178
ADTRAN, Inc. 1,889 36,155
Mettler Toledo International, Inc.* 700 35,917
RF Micro Devices, Inc.*+ 5,227 35,753
Hutchinson Technology, Inc.* 1,030 35,607
Avocent Corp.* 860 34,847
Unisys Corp.* 3,380 34,408
Brooks Automation, Inc.* 1,980 34,096
Axcelis Technologies, Inc.* 4,185 34,024
Symbol Technologies, Inc. 1,960 33,908
Foundry Networks, Inc.* 2,529 33,282
Inter-Tel, Inc. 1,210 33,130
Littelfuse, Inc.* 960 32,794
ATMI, Inc.* 1,420 31,993
Transaction Systems Architects,
Inc. -- Class A* 1,610 31,958
Integrated Device Technology, Inc.* 2,760 31,906
Xilinx, Inc. 1,072 31,785
Digital Insight Corp.* 1,710 31,464
FEI Co.*+ 1,480 31,080
Rambus, Inc.* 1,350 31,050
ViaSat, Inc.* 1,260 30,580
Lattice Semiconductor Corp.* 5,220 29,754
Harris Corp.+ 469 28,980
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Harmonic, Inc.* 3,450 $ 28,773
Veeco Instruments, Inc.* 1,350 28,444
Power Integrations, Inc.* 1,380 27,296
Sonic Solutions, Inc.*+ 1,170 26,255
Agilsys, Inc. 1,496 25,641
Dupont Photomasks, Inc.* 970 25,618
Itron, Inc.* 1,060 25,345
Photronics, Inc.* 1,520 25,080
FindWhat.com*+ 1,400 24,822
Synaptics, Inc.* 800 24,464
McData Corp. -- Class A* 4,030 24,019
Quantum Corp.*+ 9,000 23,580
CTS Corp. 1,760 23,390
Daktronics, Inc.* 910 22,650
Ultratech, Inc.* 1,200 22,620
BEI Technologies, Inc. 720 22,234
Methode Electronics, Inc. -- Class A 1,730 22,230
Symmetricom, Inc.* 2,210 21,459
MapInfo Corp.* 1,129 13,525
Mercury Interactive Corp.*+ 90 4,100
---------------
TOTAL COMMON STOCKS
(Cost $17,116,200) 19,806,450
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 125,777 125,777
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $125,777) 125,777
---------------
SECURITIES LENDING COLLATERAL 11.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,213,108 2,213,108
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,213,108) 2,213,108
---------------
TOTAL INVESTMENTS 111.2%
(Cost $19,455,085) $ 22,145,335
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (11.2)% $ (2,226,570)
===============
NET ASSETS - 100.0% $ 19,918,765
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 145
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Cisco Systems, Inc.* 112,460 $ 2,170,478
Vodafone Group PLC - SP ADR+ 71,030 1,944,802
SBC Communications, Inc. 62,740 1,616,810
Nokia OYJ - SP ADR+ 98,530 1,543,965
Verizon Communications, Inc. 35,190 1,425,547
Qualcomm, Inc. 32,050 1,358,920
Motorola, Inc.+ 70,320 1,209,504
BellSouth Corp. 42,460 1,179,963
Telefonaktiebolaget LM Ericsson -
SP ADR* 35,395 1,114,589
Lucent Technologies, Inc.*+ 291,170 1,094,799
Sprint Corp.+ 37,450 930,633
CenturyTel, Inc.+ 21,120 749,126
Alcatel SA - SP ADR*+ 47,780 746,801
Comverse Technology, Inc.* 30,280 740,346
Alltel Corp. 12,030 706,883
Nextel Communications, Inc. --
Class A* 22,440 673,200
Juniper Networks, Inc.*+ 24,080 654,735
Crown Castle International Corp.* 36,508 607,493
Telephone & Data Systems, Inc.+ 5,940 457,083
AT&T Corp.+ 23,851 454,600
American Tower Corp. -- Class A*+ 22,900 421,360
Qwest Communications
International, Inc.* 76,310 338,816
Spectrasite, Inc.* 5,810 336,399
Avaya, Inc.*+ 19,200 330,240
Citizens Communications Co. 23,529 324,465
Scientific-Atlanta, Inc.+ 9,640 318,216
NII Holdings, Inc. -- Class B* 6,230 295,614
U.S. Cellular Corp.* 6,480 290,045
Utstarcom, Inc.* 12,710 281,527
Harris Corp.+ 4,330 267,551
Tellabs, Inc.*+ 30,062 258,231
Andrew Corp.* 18,217 248,298
CIENA Corp.* 72,500 242,150
Foundry Networks, Inc.* 18,106 238,275
ADC Telecommunications, Inc.* 88,790 237,957
IDT Corp. -- Class B* 15,370 237,928
Level 3 Communications, Inc.*+ 68,070 230,757
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
General Communication --
Class A* 20,680 $ 228,307
Corning, Inc.*+ 19,000 223,630
Avocent Corp.* 5,500 222,860
JDS Uniphase Corp.*+ 63,390 200,946
Nextel Partners, Inc. -- Class A*+ 9,940 194,228
Western Wireless Corp.* 6,220 182,246
Plantronics, Inc. 4,390 182,053
Interdigital Communications Corp.* 8,140 179,894
Powerwave Technologies, Inc.* 21,120 179,098
ADTRAN, Inc. 9,320 178,385
Harmonic, Inc.* 19,500 162,630
3Com Corp.* 37,760 157,459
Freescale Semiconductor, Inc. --
Class B* 7,759 142,455
F5 Networks, Inc.* 2,770 134,954
Boston Communications
Group, Inc.* 13,590 125,572
Inter-Tel, Inc. 4,490 122,936
ViaSat, Inc.* 4,342 105,380
Network Equipment
Technologies, Inc.* 9,490 93,192
Digi International, Inc.* 5,290 90,935
Commonwealth Telephone
Enterprises, Inc.* 1,620 80,449
C-COR, Inc.* 8,152 75,814
Black Box Corp.+ 1,370 65,787
Symmetricom, Inc.* 6,558 63,678
Brooktrout, Inc.* 4,820 57,888
SCM Microsystems, Inc.* 11,619 56,701
Tollgrade Communications, Inc.* 4,230 51,775
Tele Leste Celular Participacoes SA -
SP ADR* 3,628 44,080
PC-Tel, Inc.* 5,290 41,950
Audiovox Corp. -- Class A* 2,050 32,349
Polycom, Inc.* 1,320 30,782
Tekelec* 1,370 28,003
McData Corp. -- Class A* 2,740 16,330
---------------
TOTAL COMMON STOCKS
(Cost $25,171,532) 30,030,852
---------------
See Notes to Financial Statements.
146 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2004
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.1%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 48,935 $ 48,935
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $48,935) 48,935
---------------
SECURITIES LENDING COLLATERAL 17.6%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 5,312,502 5,312,502
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,312,502) 5,312,502
---------------
TOTAL INVESTMENTS 117.2%
(Cost $30,532,969) $ 35,392,289
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (17.2)% $ (5,201,509)
===============
NET ASSETS - 100.0% $ 30,190,780
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 147
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
United Parcel Service, Inc. --
Class B+ 65,225 $ 5,574,128
FedEx Corp.+ 38,047 3,747,249
Norfolk Southern Corp. 84,752 3,067,175
Burlington Northern Santa Fe Corp. 60,456 2,860,173
Union Pacific Corp. 40,660 2,734,385
Southwest Airlines Co. 161,059 2,622,041
CNF, Inc. 37,686 1,888,069
CSX Corp.+ 45,600 1,827,648
J.B. Hunt Transport Services, Inc. 34,637 1,553,469
Yellow Roadway Corp.*+ 24,559 1,368,182
Arkansas Best Corp. 29,038 1,303,516
Alaska Air Group, Inc.*+ 37,311 1,249,545
Swift Transportation Co., Inc.*+ 55,420 1,190,422
Ryder System, Inc.+ 24,483 1,169,553
Expeditors International
Washington, Inc.+ 19,866 1,110,112
Landstar System, Inc.* 14,912 1,098,120
Kansas City Southern*+ 59,208 1,049,758
SkyWest, Inc. 51,919 1,041,495
Delta Air Lines, Inc.*+ 119,156 891,287
EGL, Inc.*+ 28,075 839,162
C.H. Robinson Worldwide, Inc.+ 14,841 823,972
JetBlue Airways Corp.*+ 35,269 818,946
AMR Corp.*+ 73,170 801,211
Alexander & Baldwin, Inc.+ 17,428 739,296
Kirby Corp.* 15,881 704,799
AirTran Holdings, Inc.* 56,508 604,636
Heartland Express, Inc. 24,430 548,942
Genesee & Wyoming, Inc. --
Class A* 15,830 445,298
Frontier Airlines, Inc.* 37,899 432,428
Canadian Pacific Railway Ltd. 10,866 373,899
Mesa Air Group, Inc.*+ 46,495 369,170
Overnite Corp. 7,440 277,066
Forward Air Corp.* 6,137 274,324
Knight Transportation, Inc. 10,695 265,236
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Werner Enterprises, Inc. 10,906 $ 246,912
U.S. Xpress Enterprises -- Class A* 7,375 216,088
SCS Transportation, Inc.* 8,376 195,747
Florida East Coast Industries, Inc. 3,390 152,889
Pinnacle Airlines Corp.* 9,110 126,993
FLYi, Inc.*+ 71,708 126,923
Pacer International, Inc.* 4,013 85,316
Lan Airlines SA-SP ADR 2,580 83,076
Gol Linhas Aereas Inteligentes SA -
SP ADR* 2,088 66,565
HUB Group, Inc. -- Class A*+ 1,188 62,037
Sirva, Inc.* 2,372 45,590
CP Ships Ltd. 2,820 40,467
Ryanair Holdings PLC - SP ADR* 690 28,118
---------------
TOTAL COMMON STOCKS
(Cost $38,638,583) 47,141,433
---------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
1.55% due 01/03/05 $ 226,985 226,985
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $226,985) 226,985
---------------
SECURITIES LENDING COLLATERAL 22.2%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) 10,519,806 10,519,806
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $10,519,806) 10,519,806
---------------
TOTAL INVESTMENTS 122.3%
(Cost $49,385,374) $ 57,888,224
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.3)% $ (10,554,795)
===============
NET ASSETS - 100.0% $ 47,333,429
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
148 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2004
- --------------------------------------------------------------------------------
UTILITIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Exelon Corp.+ 22,824 $ 1,005,869
FirstEnergy Corp. 18,631 736,111
Consolidated Edison, Inc. 16,714 731,237
Progress Energy, Inc.+ 15,469 699,818
Public Service Enterprise Group,
Inc.+ 13,470 697,342
Constellation Energy Group, Inc. 15,097 659,890
TXU Corp.+ 10,004 645,858
DTE Energy Co.+ 14,009 604,208
Pinnacle West Capital Corp. 13,200 586,212
Energy East Corp. 21,894 584,132
Duke Energy Corp.+ 22,807 577,701
KeySpan Corp.+ 14,531 573,248
PG&E Corp.*+ 16,933 563,530
Xcel Energy, Inc.+ 30,143 548,603
OGE Energy Corp.+ 19,402 514,347
Atmos Energy Corp. 18,254 499,247
Northeast Utilities 26,127 492,494
MDU Resources Group, Inc. 17,872 476,825
Cleco Corp.+ 22,576 457,390
UGI Corp. 11,112 454,592
AES Corp.* 32,530 444,685
Pepco Holdings, Inc.+ 20,086 428,234
Entergy Corp.+ 6,094 411,893
Oneok, Inc.+ 14,162 402,484
Equitable Resources, Inc. 6,482 393,198
American States Water Co. 14,746 383,396
Great Plains Energy, Inc.+ 12,332 373,413
NRG Energy, Inc.* 9,925 357,796
Edison International 11,120 356,174
Dominion Resources, Inc./VA+ 4,994 338,294
Southern Union Co.*+ 14,026 336,331
Southern Co.+ 9,748 326,753
American Electric Power Co., Inc.+ 9,498 326,161
Reliant Resources, Inc.*+ 23,335 318,523
IDACORP, Inc. 9,923 303,346
Unisource Energy Corp. 11,412 275,143
PPL Corp. 4,716 251,268
Duquesne Light Holdings, Inc.+ 13,070 246,369
CenterPoint Energy, Inc.+ 21,197 239,526
Allegheny Energy, Inc.*+ 11,790 232,381
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Sierra Pacific Resources*+ 21,605 $ 226,853
Questar Corp. 4,439 226,211
CMS Energy Corp.* 21,480 224,466
UIL Holding Corp. 4,161 213,459
FPL Group, Inc.+ 2,407 179,923
Calpine Corp.*+ 41,710 164,337
Cascade Natural Gas Corp. 6,835 144,902
AGL Resources, Inc. 4,211 139,974
Energen Corp. 2,215 130,574
Laclede Group, Inc. 3,980 123,977
TECO Energy, Inc.+ 7,907 121,293
Green Mountain Power Corp. 4,172 120,279
WPS Resources Corp. 2,385 119,155
DPL, Inc. 4,041 101,470
El Paso Electric Co.* 5,187 98,242
Aquila, Inc.* 26,612 98,198
Piedmont Natural Gas Co.+ 4,179 97,120
Sempra Energy+ 2,523 92,544
Ameren Corp.+ 1,605 80,475
PNM Resources, Inc. 2,798 70,761
Dynegy, Inc. -- Class A*+ 12,946 59,811
SCANA Corp. 1,220 48,068
Hawaiian Electric Industries, Inc. 1,306 38,070
Cinergy Corp.+ 719 29,932
NiSource, Inc. 310 7,062
---------------
TOTAL COMMON STOCKS
(Cost $19,544,521) 21,811,178
---------------
FACE
AMOUNT
-------------
SECURITIES LENDING COLLATERAL 23.5%
Investment in Securities Lending Short Term
Investment Portfolio held by
U.S. Bank (Note 8) $ 5,145,991 5,145,991
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,145,991) 5,145,991
---------------
TOTAL INVESTMENTS 123.1%
(Cost $24,690,512) $ 26,957,169
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.1)% $ (5,054,977)
===============
NET ASSETS - 100.0% $ 21,902,192
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2004 - SEE
NOTE 8.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 149
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 138,946,566 $ 17,876,296 $ 227,235,145 $ 24,148,019
Segregated Cash with Broker 5,088,000 1,024,000 1,890,000 315,000
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- 11,813
Receivable for Futures Contracts Settlement (Note 1) -- 18,290 -- 1,050
Receivable for Securities Sold (Note 1) -- -- -- --
Receivable for Shares Purchased 1,163,924 209,052 1,435,156 52,864
Investment Income Receivable (Note 1) 165,495 1,066 73,055 2,078
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 145,363,985 19,128,704 230,633,356 24,530,824
=================================================================================================================================
LIABILITIES
Short Sale at Market Value -- -- -- --
Payable to cover Short Sale -- -- -- --
Payable for Equity Index Swap Settlement (Note 1) -- -- -- --
Payable for Futures Contracts Settlement (Note 1) 95,400 -- 6,300 --
Payable upon Return of Securities Loaned (Note 8) 13,804,518 -- 37,093,297 --
Payable for Securities Purchased (Note 1) 998,735 -- 1,494,757 --
Liability for Shares Redeemed 104,100 1,258 282,772 539,094
Investment Advisory Fee Payable (Note 3) 78,768 17,694 122,089 21,789
Transfer Agent Fee Payable (Note 3) 26,256 4,915 40,696 6,052
Distribution and Service Fee Payable (Note 3) 26,256 4,915 40,696 6,052
Portfolio Accounting Fee Payable (Note 3) 10,502 1,966 16,279 2,421
Custody Fees Payable 2,556 471 3,907 581
Interest Payable -- -- -- --
Dividends Payable -- -- -- --
Other Liabilities 16,864 21,861 56,242 27,138
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 15,163,955 53,080 39,157,035 603,127
=================================================================================================================================
NET ASSETS $ 130,200,030 $ 19,075,624 $ 191,476,321 $ 23,927,697
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 231,827,113 $ 44,800,958 $ 561,351,335 $ 32,253,162
Undistributed Net Investment Income 362,006 -- -- --
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (113,222,302) (25,318,285) (417,090,949) (8,327,378)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 11,233,213 (407,049) 47,215,935 1,913
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 130,200,030 $ 19,075,624 $ 191,476,321 $ 23,927,697
=================================================================================================================================
Shares Outstanding 15,768,780 3,674,617 13,310,046 1,126,449
Net Asset Values $ 8.26 $ 5.19 $ 14.39 $ 21.24
* THE COST OF SECURITIES AT VALUE IS $128,803,643, $17,876,296,
$180,188,400, $24,148,019, $28,599,102, $59,214,386, $37,044,741,
$1,058,009, $109,143,539, $4,645,791, $45,988,230, AND $74,697,984,
RESPECTIVELY.
See Notes to Financial Statements.
150 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
December 31, 2004
- --------------------------------------------------------------------------------
INVERSE
TITAN 500 VELOCITY 100 MEDIUS MID-CAP
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 30,411,626 $ 63,761,358 $ 39,140,659 $ 1,058,009
Segregated Cash with Broker 2,047,620 1,713,000 1,660,289 316,507
Receivable for Equity Index Swap Settlement (Note 1) -- 206,934 842,494 --
Receivable for Futures Contracts Settlement (Note 1) -- -- 15,981 --
Receivable for Securities Sold (Note 1) -- -- -- --
Receivable for Shares Purchased 2,837,075 3,043,975 12,171 --
Investment Income Receivable (Note 1) 24,784 13,158 16,677 55
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 35,321,105 68,738,425 41,688,271 1,374,571
=================================================================================================================================
LIABILITIES
Short Sale at Market Value -- -- -- --
Payable to cover Short Sale -- -- -- --
Payable for Equity Index Swap Settlement (Note 1) -- -- -- 52,061
Payable for Futures Contracts Settlement (Note 1) 38,400 5,710 -- 880
Payable upon Return of Securities Loaned (Note 8) 600,365 6,533,954 4,234,054 --
Payable for Securities Purchased (Note 1) 5,581,161 3,688,920 -- --
Liability for Shares Redeemed -- 838,374 3,230,332 35
Investment Advisory Fee Payable (Note 3) 19,784 33,211 28,817 1,166
Transfer Agent Fee Payable (Note 3) 5,496 9,225 8,005 324
Distribution and Service Fee Payable (Note 3) 5,496 9,225 8,005 324
Portfolio Accounting Fee Payable (Note 3) 2,198 3,690 3,202 130
Custody Fees Payable 527 886 768 31
Interest Payable -- -- -- --
Dividends Payable -- -- -- --
Other Liabilities 15,024 16,428 13,545 773
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 6,268,451 11,139,623 7,526,728 55,724
=================================================================================================================================
NET ASSETS $ 29,052,654 $ 57,598,802 $ 34,161,543 $ 1,318,847
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 26,976,700 $ 55,882,056 $ 31,711,249 $ 1,726,733
Undistributed Net Investment Income 24,721 -- -- --
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (274,371) (3,097,125) (745,304) (367,573)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 2,325,604 4,813,871 3,195,598 (40,313)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 29,052,654 $ 57,598,802 $ 34,161,543 $ 1,318,847
=================================================================================================================================
Shares Outstanding 1,465,209 2,494,149 1,288,932 29,952
Net Asset Values $ 19.83 $ 23.09 $ 26.50 $ 44.03
INVERSE U.S.
MEKROS SMALL-CAP GOVERNMENT JUNO
FUND FUND BOND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 113,721,384 $ 4,645,791 $ 47,230,639 $ 74,696,990
Segregated Cash with Broker 5,883,107 587,171 749,000 170,417
Receivable for Equity Index Swap Settlement (Note 1) 1,520,092 -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- 1,000 401,250 --
Receivable for Securities Sold (Note 1) -- -- 446,437 --
Receivable for Shares Purchased 116,517 -- -- 233,828
Investment Income Receivable (Note 1) 95,071 468 338,333 4,643
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 121,336,171 5,234,430 49,165,659 75,105,878
=================================================================================================================================
LIABILITIES
Short Sale at Market Value -- -- -- 31,937,746
Payable to cover Short Sale -- -- -- 719,343
Payable for Equity Index Swap Settlement (Note 1) -- 266,768 -- --
Payable for Futures Contracts Settlement (Note 1) 80,200 -- -- 92,250
Payable upon Return of Securities Loaned (Note 8) 5,310,738 -- -- --
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Shares Redeemed 3,136,921 610,661 379,336 532,456
Investment Advisory Fee Payable (Note 3) 75,202 4,013 19,091 46,919
Transfer Agent Fee Payable (Note 3) 20,890 1,115 7,636 13,033
Distribution and Service Fee Payable (Note 3) 20,890 1,115 9,545 13,033
Portfolio Accounting Fee Payable (Note 3) 8,356 446 3,818 5,213
Custody Fees Payable 2,005 107 1,094 1,251
Interest Payable -- -- -- 621,746
Dividends Payable -- -- 90 --
Other Liabilities 32,173 6,409 35,957 25,092
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 8,687,375 890,634 456,567 34,008,082
=================================================================================================================================
NET ASSETS $ 112,648,796 $ 4,343,796 $ 48,709,092 $ 41,097,796
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 108,697,096 $ 6,994,204 $ 53,444,097 $ 47,133,680
Undistributed Net Investment Income 1,372,293 -- -- --
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (4,702,292) (2,546,925) (6,461,470) (6,597,150)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 7,281,699 (103,483) 1,726,465 561,266
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 112,648,796 $ 4,343,796 $ 48,709,092 $ 41,097,796
=================================================================================================================================
Shares Outstanding 3,347,346 101,430 4,101,225 1,871,955
Net Asset Values $ 33.65 $ 42.83 $ 11.88 $ 21.95
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 151
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
- --------------------------------------------------------------------------------
LONG INVERSE
LARGE-CAP LARGE-CAP DYNAMIC DYNAMIC
EUROPE JAPAN DOW 30 DOW 30
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 52,525,407 $ 8,965,521 $ 10,437,478 $ 3,042,646
Segregated Cash with Broker -- 76,700 146,000 158,000
Cash in Custodian Bank -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) 1,110,209 1,504,957 17,978 --
Receivable for Futures Contracts Settlement (Note 1) -- 17,513 -- 4,345
Receivable for Shares Purchased 2,303,369 3,695,873 2,449,071 7,035
Investment Income Receivable (Note 1) 5,196 611 5,645 283
Other Assets -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 55,944,181 14,261,175 13,056,172 3,212,309
=================================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- 21,643
Payable for Futures Contracts Settlement (Note 1) -- -- 4,669 --
Payable upon Return of Securities Loaned (Note 8) -- -- 621,340 --
Payable for Securities Purchased (Note 1) -- -- 2,000,251 --
Liability for Shares Redeemed 879,544 40 10 125
Investment Advisory Fee Payable (Note 3) 36,509 14,856 5,600 3,019
Transfer Agent Fee Payable (Note 3) 10,141 4,127 1,556 839
Distribution and Service Fee Payable (Note 3) 10,141 4,127 1,556 839
Portfolio Accounting Fee Payable (Note 3) 4,057 1,651 622 335
Custody Fees Payable 974 769 149 80
Other Liabilities 8,566 7,514 1,076 1,131
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 949,932 33,084 2,636,829 28,011
=================================================================================================================================
NET ASSETS $ 54,994,249 $ 14,228,091 $ 10,419,343 $ 3,184,298
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 53,814,556 $ 13,659,594 $ 9,669,220 $ 3,446,177
Undistributed Net Investment Income 85,714 -- 579 --
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, and Futures Contracts 104,971 (290,860) 383,532 (142,648)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, and Futures Contracts 989,008 859,357 366,012 (119,231)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 54,994,249 $ 14,228,091 $ 10,419,343 $ 3,184,298
=================================================================================================================================
Shares Outstanding 2,430,928 512,309 402,493 73,672
Net Asset Values $ 22.62 $ 27.77 $ 25.89 $ 43.22
* THE COST OF SECURITIES AT VALUE IS $52,525,407, $8,965,521, $10,134,381,
$3,042,646, $44,491,728, $19,462,038, $10,849,367, $28,648,614,
$21,300,531, $20,432,587, $29,938,087, AND $180,288,275, RESPECTIVELY.
See Notes to Financial Statements.
152 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 48,810,602 $ 20,923,261 $ 12,070,476 $ 31,865,602
Segregated Cash with Broker -- -- -- --
Cash in Custodian Bank -- -- -- 103
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Shares Purchased 65,671 242,558 358,294 1,907,077
Investment Income Receivable (Note 1) 41,410 13,169 14,620 17,432
Other Assets -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 48,917,683 21,178,988 12,443,390 33,790,214
=================================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- --
Payable for Futures Contracts Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 8) 1,563,541 1,424,576 931,373 1,572,253
Payable for Securities Purchased (Note 1) -- 253,244 327,370 1,585,031
Liability for Shares Redeemed 17,734 145 24,010 317,600
Investment Advisory Fee Payable (Note 3) 31,212 10,165 7,954 22,325
Transfer Agent Fee Payable (Note 3) 10,404 3,388 2,651 7,442
Distribution and Service Fee Payable (Note 3) 10,404 3,388 2,651 7,442
Portfolio Accounting Fee Payable (Note 3) 4,162 1,355 1,061 2,977
Custody Fees Payable 998 326 255 714
Other Liabilities 5,712 3,849 2,186 5,064
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,644,167 1,700,436 1,299,511 3,520,848
=================================================================================================================================
NET ASSETS $ 47,273,516 $ 19,478,552 $ 11,143,879 $ 30,269,366
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 43,643,681 $ 18,958,831 $ 10,156,934 $ 27,961,319
Undistributed Net Investment Income -- -- 2,411 --
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, and Futures Contracts (689,039) (941,502) (236,575) (908,941)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, and Futures Contracts 4,318,874 1,461,223 1,221,109 3,216,988
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 47,273,516 $ 19,478,552 $ 11,143,879 $ 30,269,366
=================================================================================================================================
Shares Outstanding 1,639,416 719,323 402,587 1,060,175
Net Asset Values $ 28.84 $ 27.08 $ 27.68 $ 28.55
U.S.
MID-CAP LARGE-CAP SECTOR GOVERNMENT
GROWTH GROWTH ROTATION MONEY
FUND FUND FUND MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 22,715,707 $ 21,459,418 $ 33,906,893 $ 180,288,275
Segregated Cash with Broker -- -- -- --
Cash in Custodian Bank -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Shares Purchased 2,426,998 957,869 1,256 302,209
Investment Income Receivable (Note 1) 8,545 23,593 31,379 8,803
Other Assets -- -- -- 78
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 25,151,250 22,440,880 33,939,528 180,599,365
=================================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- --
Payable for Futures Contracts Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 8) 2,031,814 1,446,609 6,101,785 --
Payable for Securities Purchased (Note 1) 2,241,150 961,144 -- --
Liability for Shares Redeemed 153,447 13 46,822 12,524,678
Investment Advisory Fee Payable (Note 3) 11,421 10,696 20,744 86,814
Transfer Agent Fee Payable (Note 3) 3,807 3,565 5,762 34,725
Distribution and Service Fee Payable (Note 3) 3,807 3,565 5,762 43,407
Portfolio Accounting Fee Payable (Note 3) 1,523 1,426 2,305 17,357
Custody Fees Payable 378 342 561 4,167
Other Liabilities 1,871 1,796 8,345 210,220
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,449,218 2,429,156 6,192,086 12,921,368
=================================================================================================================================
NET ASSETS $ 20,702,032 $ 20,011,724 $ 27,747,442 $ 167,677,997
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 20,672,776 $ 19,530,517 $ 24,733,433 $ 167,672,050
Undistributed Net Investment Income -- 4,614 -- 7,493
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, and Futures Contracts (1,385,920) (550,238) (954,797) (1,546)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, and Futures Contracts 1,415,176 1,026,831 3,968,806 --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 20,702,032 $ 20,011,724 $ 27,747,442 $ 167,677,997
=================================================================================================================================
Shares Outstanding 763,135 777,046 2,485,977 167,691,658
Net Asset Values $ 27.13 $ 25.75 $ 11.16 $ 1.00
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 153
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 23,214,109 $ 53,261,263 $ 7,233,947 $ 26,811,081
Receivable for Securities Sold (Note 1) -- -- 452,107 --
Receivable for Shares Purchased 1,088,399 173,322 620 1,296,315
Investment Income Receivable (Note 1) 53,785 38,340 349 46,731
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 24,356,293 53,472,925 7,687,023 28,154,127
=================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 1,309,542 6,982,118 612,142 2,421,449
Payable for Securities Purchased (Note 1) 1,085,496 184,792 -- 1,241,985
Liability for Shares Redeemed 99 62,687 467,450 12,610
Investment Advisory Fee Payable (Note 3) 17,088 37,440 5,957 17,288
Transfer Agent Fee Payable (Note 3) 5,026 11,012 1,752 5,085
Distribution and Service Fee Payable (Note 3) 5,026 11,012 1,752 5,085
Portfolio Accounting Fee Payable (Note 3) 2,010 4,405 701 2,034
Custody Fees Payable 483 1,070 273 488
Other Liabilities 11,784 16,612 8,665 15,171
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,436,554 7,311,148 1,098,692 3,721,195
=================================================================================================================================
NET ASSETS $ 21,919,739 $ 46,161,777 $ 6,588,331 $ 24,432,932
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 18,874,397 $ 37,642,330 $ 10,723,314 $ 23,619,288
Undistributed Net Investment Income 208,716 95,937 -- 98,701
Accumulated Net Realized Gain (Loss) on Investments 1,383,705 2,153,423 (5,792,202) (2,201,261)
Net Unrealized Appreciation (Depreciation) on Investments 1,452,921 6,270,087 1,657,219 2,916,204
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 21,919,739 $ 46,161,777 $ 6,588,331 $ 24,432,932
=================================================================================================================================
Shares Outstanding 604,019 1,413,618 341,233 741,483
Net Asset Values $ 36.29 $ 32.66 $ 19.31 $ 32.95
* THE COST OF SECURITIES AT VALUE IS $21,761,188, $46,991,176, $5,576,728,
$23,894,877, $12,100,176, $62,027,462, $29,582,431, $46,191,152,
$29,664,188, $38,584,911, $54,895,212 AND $39,398,478, RESPECTIVELY
See Notes to Financial Statements.
154 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
December 31, 2004
- --------------------------------------------------------------------------------
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 13,115,485 $ 71,457,076 $ 34,592,457 $ 48,334,049
Receivable for Securities Sold (Note 1) -- -- 549,121 --
Receivable for Shares Purchased 4,354,841 249,702 90,405 135,827
Investment Income Receivable (Note 1) 202 44,573 7,528 73,235
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 17,470,528 71,751,351 35,239,511 48,543,111
=================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 824,303 11,003,535 5,212,067 2,969,265
Payable for Securities Purchased (Note 1) 4,343,167 90,900 -- 320,374
Liability for Shares Redeemed 5 55,345 667,373 6,571
Investment Advisory Fee Payable (Note 3) 4,903 44,899 19,838 31,066
Transfer Agent Fee Payable (Note 3) 1,442 13,205 5,835 9,137
Distribution and Service Fee Payable (Note 3) 1,442 13,205 5,835 9,137
Portfolio Accounting Fee Payable (Note 3) 577 5,282 2,334 3,655
Custody Fees Payable 138 1,268 560 878
Other Liabilities 5,221 23,050 9,184 13,329
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,181,198 11,250,689 5,923,026 3,363,412
=================================================================================================================================
NET ASSETS $ 12,289,330 $ 60,500,662 $ 29,316,485 $ 45,179,699
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 15,053,409 $ 47,699,450 $ 27,302,617 $ 41,611,548
Undistributed Net Investment Income -- 16,641 -- 227,270
Accumulated Net Realized Gain (Loss) on Investments (3,779,388) 3,354,957 (2,996,158) 1,197,984
Net Unrealized Appreciation (Depreciation) on Investments 1,015,309 9,429,614 5,010,026 2,142,897
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 12,289,330 $ 60,500,662 $ 29,316,485 $ 45,179,699
=================================================================================================================================
Shares Outstanding 933,264 2,038,453 1,406,084 1,487,078
Net Asset Values $ 13.17 $ 29.68 $ 20.85 $ 30.38
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 34,166,024 $ 46,092,738 $ 60,482,145 $ 45,560,948
Receivable for Securities Sold (Note 1) 50,927 -- 779,548 47,589
Receivable for Shares Purchased 232,515 181,638 222 74,066
Investment Income Receivable (Note 1) 11,651 3,508 34,354 26
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 34,461,117 46,277,884 61,296,269 45,682,629
=================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 3,854,239 9,104,697 8,723,961 10,550,450
Payable for Securities Purchased (Note 1) -- 190,380 -- --
Liability for Shares Redeemed 117,174 2,743 749,962 31,693
Investment Advisory Fee Payable (Note 3) 22,289 27,943 32,918 25,311
Transfer Agent Fee Payable (Note 3) 6,555 8,219 9,682 8,437
Distribution and Service Fee Payable (Note 3) 6,555 8,219 9,682 8,437
Portfolio Accounting Fee Payable (Note 3) 2,622 3,287 3,873 3,375
Custody Fees Payable 694 900 979 857
Other Liabilities 15,675 9,571 10,324 10,999
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,025,803 9,355,959 9,541,381 10,639,559
=================================================================================================================================
NET ASSETS $ 30,435,314 $ 36,921,925 $ 51,754,888 $ 35,043,070
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 31,649,604 $ 33,230,795 $ 45,434,586 $ 39,027,189
Undistributed Net Investment Income -- -- -- --
Accumulated Net Realized Gain (Loss) on Investments (5,716,126) (3,816,697) 733,369 (10,146,589)
Net Unrealized Appreciation (Depreciation) on Investments 4,501,836 7,507,827 5,586,933 6,162,470
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 30,435,314 $ 36,921,925 $ 51,754,888 $ 35,043,070
=================================================================================================================================
Shares Outstanding 1,195,596 2,171,209 2,038,187 4,090,807
Net Asset Values $ 25.46 $ 17.01 $ 25.39 $ 8.57
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 155
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 29,266,724 $ 24,710,559 $ 22,145,335 $ 35,392,289
Receivable for Securities Sold (Note 1) 3,221,744 -- -- --
Receivable for Shares Purchased -- 103,277 218,197 125,974
Investment Income Receivable (Note 1) 176,304 14,874 7,338 47,930
Other Assets -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 32,664,772 24,828,710 22,370,870 35,566,193
=================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 2,438,689 3,955,244 2,213,108 5,312,502
Payable for Securities Purchased (Note 1) -- -- 193,820 13,452
Liability for Shares Redeemed 3,261,631 34,500 9,443 164
Investment Advisory Fee Payable (Note 3) 22,510 16,656 16,392 23,799
Transfer Agent Fee Payable (Note 3) 6,621 4,899 4,821 7,000
Distribution and Service Fee Payable (Note 3) 6,621 4,899 4,821 7,000
Portfolio Accounting Fee Payable (Note 3) 2,648 1,960 1,928 2,800
Custody Fees Payable 635 475 463 672
Cash Payable to Custodian Bank -- -- -- 14
Other Liabilities 10,226 9,688 7,309 8,010
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,749,581 4,028,321 2,452,105 5,375,413
=================================================================================================================================
NET ASSETS $ 26,915,191 $ 20,800,389 $ 19,918,765 $ 30,190,780
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 23,705,096 $ 18,603,255 $ 20,619,550 $ 26,747,347
Undistributed Net Investment Income 486,247 -- -- --
Accumulated Net Realized Loss on Investments (2,327,896) (1,632,570) (3,391,035) (1,415,887)
Net Unrealized Appreciation (Depreciation) on Investments 5,051,744 3,829,704 2,690,250 4,859,320
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 26,915,191 $ 20,800,389 $ 19,918,765 $ 30,190,780
=================================================================================================================================
Shares Outstanding 707,970 780,454 1,475,163 1,470,766
Net Asset Values $ 38.02 $ 26.65 $ 13.50 $ 20.53
* THE COST OF SECURITIES AT VALUE IS $24,214,980, $20,880,855, $19,455,085,
$30,532,969, $49,385,374, AND $24,690,512, RESPECTIVELY
See Notes to Financial Statements.
156 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
December 31, 2004
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- ---------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 57,888,224 $ 26,957,169
Receivable for Securities Sold (Note 1) -- --
Receivable for Shares Purchased 228,663 --
Investment Income Receivable (Note 1) 49,340 47,526
Other Assets -- 259,440
- ---------------------------------------------------------------------------------------------
TOTAL ASSETS 58,166,227 27,264,135
=============================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 10,519,806 5,145,991
Payable for Securities Purchased (Note 1) 174,361 55,603
Liability for Shares Redeemed 67,240 62,609
Investment Advisory Fee Payable (Note 3) 35,734 17,738
Transfer Agent Fee Payable (Note 3) 10,510 5,217
Distribution and Service Fee Payable (Note 3) 10,510 5,217
Portfolio Accounting Fee Payable (Note 3) 4,204 2,087
Custody Fees Payable 1,009 692
Cash Payable to Custodian Bank -- 60,320
Other Liabilities 9,424 6,469
- ---------------------------------------------------------------------------------------------
TOTAL LIABILITIES 10,832,798 5,361,943
=============================================================================================
NET ASSETS $ 47,333,429 $ 21,902,192
=============================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 40,562,436 $ 20,589,310
Undistributed Net Investment Income -- 313,329
Accumulated Net Realized Loss on Investments (1,731,857) (1,267,104)
Net Unrealized Appreciation (Depreciation) on Investments 8,502,850 2,266,657
- ---------------------------------------------------------------------------------------------
NET ASSETS $ 47,333,429 $ 21,902,192
=============================================================================================
Shares Outstanding 1,505,189 1,263,441
Net Asset Values $ 31.45 $ 17.34
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 157
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 235,248 $ 625,242 $ 123,691 $ 575,389
Interest from Securities Lending, net (Note 8) 8,898 -- 21,704 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 1,397,218 -- 1,579,480 --
Other Income -- -- 1,774 --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 1,641,364 625,242 1,726,649 575,389
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 662,738 420,805 999,272 401,261
Transfer Agent and Administrative Fees (Note 3) 220,912 116,890 333,090 111,451
Accounting Fees (Note 3) 88,365 46,756 133,236 44,580
Interest Expense -- -- -- --
Trustees' Fees 4,589 2,399 8,158 2,567
Service Fees (Note 3) 220,912 116,890 333,090 111,451
Custodian Fees 21,435 11,223 33,146 11,059
Miscellaneous 60,407 41,124 113,603 47,099
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,279,358 756,087 1,953,595 729,468
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 362,006 (130,845) (226,946) (154,079)
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 2,625,448 (238,680) 4,655,729 (10,905)
Equity Index Swaps -- -- -- (9,479,259)
Futures Contracts 5,594,663 (10,509,364) 1,419,519 (4,958,843)
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 8,220,111 (10,748,044) 6,075,248 (14,449,007)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 3,668,667 132,265 2,386,396 2,030
Equity Index Swaps -- -- -- 1,294,649
Futures Contracts (540,479) (161,611) (226,854) 69,959
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 3,128,188 (29,346) 2,159,542 1,366,638
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 11,348,299 (10,777,390) 8,234,790 (13,082,369)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS $ 11,710,305 $ (10,908,235) $ 8,007,844 $ (13,236,448)
=================================================================================================================================
* Net of foreign tax withheld of $0, $0, $1,785, $0, $0, $313, $0, $0, $15,
$0, $0, and $0, respectively.
** Since the commencement of operations: May 3, 2004.
See Notes to Financial Statements.
158 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
Period Ended December 31, 2004
- --------------------------------------------------------------------------------
INVERSE
TITAN 500 VELOCITY 100 MEDIUS MID-CAP
FUND FUND FUND FUND**
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 71,612 $ 123,770 $ 96,233 $ 19,571
Interest from Securities Lending, net (Note 8) 584 1,753 940 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 412,999 304,544 255,298 --
Other Income -- -- 579 --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 485,195 430,067 353,050 19,571
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 252,443 285,546 250,140 12,140
Transfer Agent and Administrative Fees (Note 3) 70,123 79,318 69,483 3,373
Accounting Fees (Note 3) 28,049 31,728 27,793 1,349
Interest Expense -- -- -- --
Trustees' Fees 1,670 1,764 1,620 33
Service Fees (Note 3) 70,123 79,318 69,483 3,373
Custodian Fees 7,759 10,466 7,155 317
Miscellaneous 30,307 31,971 28,773 1,271
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 460,474 520,111 454,447 21,856
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 24,721 (90,044) (101,397) (2,285)
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (54,193) (2,310,933) 75,900 (3,188)
Equity Index Swaps -- (926,702) (578,025) (198,576)
Futures Contracts 2,020,244 1,558,301 1,585,622 (165,809)
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 1,966,051 (1,679,334) 1,083,497 (367,573)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 530,063 2,349,939 910,615 --
Equity Index Swaps -- (1,271,768) 754,960 (15,129)
Futures Contracts (426,862) (175,708) (143,866) (25,184)
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 103,201 902,463 1,521,709 (40,313)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 2,069,252 (776,871) 2,605,206 (407,886)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS $ 2,093,973 $ (866,915) $ 2,503,809 $ (410,171)
=================================================================================================================================
INVERSE U.S.
MEKROS SMALL-CAP GOVERNMENT JUNO
FUND FUND** BOND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 282,935 $ 144,006 $ 2,520,839 $ 1,088,049
Interest from Securities Lending, net (Note 8) 7,065 -- -- --
Dividends, Net of Foreign Tax Withheld* (Note 1) 525,022 -- -- --
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 815,022 144,006 2,520,839 1,088,049
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 555,936 95,008 276,602 455,084
Transfer Agent and Administrative Fees (Note 3) 154,427 26,391 110,641 126,412
Accounting Fees (Note 3) 61,771 10,556 55,320 50,565
Interest Expense -- -- -- 1,708,403
Trustees' Fees 3,828 327 3,042 2,205
Service Fees (Note 3) 154,427 26,391 138,301 126,412
Custodian Fees 15,656 4,400 16,167 12,092
Miscellaneous 66,836 11,245 65,878 47,260
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,012,881 174,318 665,951 2,528,433
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (197,859) (30,312) 1,854,888 (1,440,384)
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (4,203,788) (2,732) 930,852 (60,254)
Equity Index Swaps 1,654,675 (1,752,358) -- --
Futures Contracts 1,660,148 (791,835) (4,256,476) (4,419,674)
Securities Sold Short -- -- -- (2,196,461)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (888,965) (2,546,925) (3,325,624) (6,676,389)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 2,285,309 -- 250,135 (994)
Equity Index Swaps 1,135,416 (89,390) -- --
Futures Contracts 418,785 (14,093) 564,576 54,674
Securities Sold Short -- -- -- 586,825
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 3,839,510 (103,483) 814,711 640,505
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 2,950,545 (2,650,408) (2,510,913) (6,035,884)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS $ 2,752,686 $ (2,680,720) $ (656,025) $ (7,476,268)
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 159
STATEMENTS OF OPERATIONS (CONTINUED)
- --------------------------------------------------------------------------------
LONG INVERSE
LARGE-CAP LARGE-CAP DYNAMIC DYNAMIC
EUROPE JAPAN DOW 30 DOW 30
FUND FUND FUND** FUND**
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 399,272 $ 205,672 $ 14,781 $ 30,765
Interest from Securities Lending, net (Note 8) -- -- -- --
Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- 51,950 --
Other Income 4,801 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 404,073 205,672 66,731 30,765
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 258,685 165,142 23,960 18,119
Transfer Agent and Administrative Fees (Note 3) 71,857 45,873 6,655 5,033
Accounting Fees (Note 3) 28,743 18,349 2,662 2,013
Trustees' Fees 948 1,239 43 39
Service Fees (Note 3) 71,857 45,873 6,655 5,033
Custodian Fees 6,963 4,922 958 473
Miscellaneous 29,283 16,794 1,876 1,811
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 468,336 298,192 42,809 32,521
- ---------------------------------------------------------------------------------------------------------------------------------
Less Expenses Waived by Distributor -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Waived Expenses -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Expenses 468,336 298,192 42,809 32,521
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (64,263) (92,520) 23,922 (1,756)
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities -- (224) 94,340 2
Equity Index Swaps 6,003,573 (5,897,355) 413,338 (381,865)
Futures Contracts 53,900 (883,028) 325,774 (8,023)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 6,057,473 (6,780,607) 833,452 (389,886)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities -- -- 303,097 --
Equity Index Swaps (439,441) 375,570 9,579 (13,425)
Futures Contracts (35,387) (6,551) 53,336 (105,806)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (474,828) 369,019 366,012 (119,231)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 5,582,645 (6,411,588) 1,199,464 (509,117)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 5,518,382 $ (6,504,108) $ 1,223,386 $ (510,873)
=================================================================================================================================
* Net of foreign tax withheld of $0, $0, $0, $0, $0, $0, $0, $0, $0, $0,
$7,039, and $0, respectively.
** Since the commencement of operations: May 3, 2004.
See Notes to Financial Statements.
160 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
Period Ended December 31, 2004
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND** FUND** FUND** FUND**
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,812 $ 1,103 $ 845 $ 1,579
Interest from Securities Lending, net (Note 8) 457 120 161 828
Dividends, Net of Foreign Tax Withheld* (Note 1) 245,544 105,933 139,704 62,921
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 247,813 107,156 140,710 65,328
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 122,821 54,654 49,463 94,288
Transfer Agent and Administrative Fees (Note 3) 40,940 18,218 16,488 31,429
Accounting Fees (Note 3) 16,376 7,287 6,595 12,572
Trustees' Fees 266 141 116 181
Service Fees (Note 3) 40,940 18,218 16,488 31,429
Custodian Fees 3,893 1,763 1,562 2,956
Miscellaneous 10,469 6,278 4,340 8,578
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 235,705 106,559 95,052 181,433
- ---------------------------------------------------------------------------------------------------------------------------------
Less Expenses Waived by Distributor -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Waived Expenses -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Expenses 235,705 106,559 95,052 181,433
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 12,108 597 45,658 (116,105)
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 642,562 66,901 (113,593) (404,399)
Equity Index Swaps -- -- -- --
Futures Contracts -- 22,213 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 642,562 89,114 (113,593) (404,399)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 4,318,874 1,461,223 1,221,109 3,216,988
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 4,318,874 1,461,223 1,221,109 3,216,988
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 4,961,436 1,550,337 1,107,516 2,812,589
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 4,973,544 $ 1,550,934 $ 1,153,174 $ 2,696,484
=================================================================================================================================
U.S.
MID-CAP LARGE-CAP SECTOR GOVERNMENT
GROWTH GROWTH ROTATION MONEY
FUND** FUND** FUND MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 586 $ 436 $ 6,387 $ 3,899,901
Interest from Securities Lending, net (Note 8) 303 70 1,847 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 40,377 188,182 245,898 --
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 41,266 188,688 254,132 3,899,901
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 44,149 40,107 207,760 1,507,834
Transfer Agent and Administrative Fees (Note 3) 14,716 13,369 57,711 603,133
Accounting Fees (Note 3) 5,887 5,348 23,084 286,130
Trustees' Fees 112 85 1,228 18,599
Service Fees (Note 3) 14,716 13,369 57,711 753,917
Custodian Fees 1,412 1,404 6,763 72,491
Miscellaneous 3,669 3,337 19,636 344,781
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 84,661 77,019 373,893 3,586,885
- ---------------------------------------------------------------------------------------------------------------------------------
Less Expenses Waived by Distributor -- -- -- (286,105)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Waived Expenses -- -- -- (286,105)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Expenses 84,661 77,019 373,893 3,300,780
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (43,395) 111,669 (119,761) 599,121
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,385,920) (424,470) 456,383 --
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,385,920) (424,470) 456,383 --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 1,415,176 1,026,831 1,404,987 --
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,415,176 1,026,831 1,404,987 --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 29,256 602,361 1,861,370 --
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (14,139) $ 714,030 $ 1,741,609 $ 599,121
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 161
STATEMENTS OF OPERATIONS (CONTINUED)
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,193 $ 3,186 $ 2,395 $ 2,650
Interest from Securities Lending, net (Note 8) 984 1,917 3,832 1,602
Dividends, Net of Foreign Tax Withheld* (Note 1) 529,755 591,426 7,477 526,887
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 532,932 596,529 13,704 531,139
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 174,028 269,583 142,694 232,254
Transfer Agent and Administrative Fees (Note 3) 51,185 79,289 41,969 68,310
Accounting Fees (Note 3) 20,474 31,716 16,788 27,324
Trustees' Fees 916 1,443 1,031 1,159
Service Fees (Note 3) 51,185 79,289 41,969 68,310
Custodian Fees 5,082 8,031 5,158 6,773
Miscellaneous 21,346 31,241 18,119 28,308
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 324,216 500,592 267,728 432,438
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 208,716 95,937 (254,024) 98,701
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 1,845,200 2,971,342 (2,732,481) (1,467,922)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 1,845,200 2,971,342 (2,732,481) (1,467,922)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 313,551 2,699,467 (376,774) 1,868,349
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 313,551 2,699,467 (376,774) 1,868,349
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 2,158,751 5,670,809 (3,109,255) 400,427
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 2,367,467 $ 5,766,746 $ (3,363,279) $ 499,128
=================================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $131, $617, $1,259, $0, $94, $33,603, $0,
$234, $0, $0, $43, AND $11,439, RESPECTIVELY.
See Notes to Financial Statements.
162 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
Year Ended December 31, 2004
- --------------------------------------------------------------------------------
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,075 $ 4,324 $ 2,418 $ 2,713
Interest from Securities Lending, net (Note 8) 1,619 4,429 1,949 1,817
Dividends, Net of Foreign Tax Withheld* (Note 1) 18,239 740,778 75,089 650,134
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 20,933 749,531 79,456 654,664
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 71,558 395,326 172,705 230,474
Transfer Agent and Administrative Fees (Note 3) 21,047 116,272 50,795 67,786
Accounting Fees (Note 3) 8,418 46,509 20,318 27,115
Trustees' Fees 792 1,723 738 1,172
Service Fees (Note 3) 21,047 116,272 50,795 67,786
Custodian Fees 2,055 11,465 5,584 7,098
Miscellaneous 9,417 45,323 18,548 25,963
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 134,334 732,890 319,483 427,394
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (113,401) 16,641 (240,027) 227,270
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 452,350 3,764,934 (666,151) 2,993,017
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 452,350 3,764,934 (666,151) 2,993,017
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (1,990,020) 7,203,445 4,338,770 1,012,134
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (1,990,020) 7,203,445 4,338,770 1,012,134
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (1,537,670) 10,968,379 3,672,619 4,005,151
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,651,071) $ 10,985,020 $ 3,432,592 $ 4,232,421
=================================================================================================================================
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,160 $ 2,761 $ 2,596 $ 4,283
Interest from Securities Lending, net (Note 8) 3,114 5,301 7,026 27,968
Dividends, Net of Foreign Tax Withheld* (Note 1) 261,441 14,321 189,559 293,428
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 267,715 22,383 199,181 325,679
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 248,170 220,936 203,292 265,661
Transfer Agent and Administrative Fees (Note 3) 72,991 64,981 59,792 88,554
Accounting Fees (Note 3) 29,196 25,992 23,917 35,421
Trustees' Fees 1,507 1,262 1,158 2,097
Service Fees (Note 3) 72,991 64,981 59,792 88,554
Custodian Fees 7,511 6,696 6,222 9,170
Miscellaneous 29,642 22,472 20,889 27,731
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 462,008 407,320 375,062 517,188
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (194,293) (384,937) (175,881) (191,509)
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (4,048,919) (1,703,305) 2,075,047 (4,346,436)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (4,048,919) (1,703,305) 2,075,047 (4,346,436)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 2,251,151 3,280,437 3,561,300 (7,741,810)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 2,251,151 3,280,437 3,561,300 (7,741,810)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (1,797,768) 1,577,132 5,636,347 (12,088,246)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,992,061) $ 1,192,195 $ 5,460,466 $ (12,279,755)
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 163
STATEMENTS OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,454 $ 1,913 $ 1,727 $ 1,952
Interest from Securities Lending, net (Note 8) 423 3,005 1,740 3,706
Dividends, Net of Foreign Tax Withheld* (Note 1) 910,207 128,794 210,122 292,081
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 912,084 133,712 213,589 297,739
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 167,883 151,715 149,453 169,533
Transfer Agent and Administrative Fees (Note 3) 49,378 44,622 43,957 49,863
Accounting Fees (Note 3) 19,751 17,849 17,583 19,945
Trustees' Fees 931 955 1,200 882
Service Fees (Note 3) 49,378 44,622 43,957 49,863
Custodian Fees 5,206 4,592 4,742 5,337
Tax Expense 3,544 -- -- --
Miscellaneous 15,680 17,368 15,966 18,221
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 311,751 281,723 276,858 313,644
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 600,333 (148,011) (63,269) (15,905)
=================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,998,721) (260,600) (1,513,746) (320,328)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,998,721) (260,600) (1,513,746) (320,328)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 3,905,052 1,158,987 236,415 2,929,686
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 3,905,052 1,158,987 236,415 2,929,686
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 1,906,331 898,387 (1,277,331) 2,609,358
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 2,506,664 $ 750,376 $ (1,340,600) $ 2,593,453
=================================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $18,160, $258, AND $0,
RESPECTIVELY.
See Notes to Financial Statements.
164 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
Year Ended December 31, 2004
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- ---------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,252 $ 1,271
Interest from Securities Lending, net (Note 8) 9,813 1,872
Dividends, Net of Foreign Tax Withheld* (Note 1) 167,195 549,250
- ---------------------------------------------------------------------------------------------
Total Income 179,260 552,393
- ---------------------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note 3) 178,915 129,965
Transfer Agent and Administrative Fees (Note 3) 52,622 38,225
Accounting Fees (Note 3) 21,049 15,290
Trustees' Fees 615 673
Service Fees (Note 3) 52,622 38,225
Custodian Fees 5,148 4,021
Tax Expense -- --
Miscellaneous 16,685 12,665
- ---------------------------------------------------------------------------------------------
Total Expenses 327,656 239,064
- ---------------------------------------------------------------------------------------------
Net Investment Income (Loss) (148,396) 313,329
=============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,111,192) 1,405,192
- ---------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,111,192) 1,405,192
- ---------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 7,775,218 1,370,754
- ---------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 7,775,218 1,370,754
- ---------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 6,664,026 2,775,946
- ---------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 6,515,630 $ 3,089,275
=============================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 165
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA FUND URSA FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 362,006 $ 41,274 $ (130,845) $ (244,634)
Net Realized Gain (Loss) on Investments 8,220,111 9,623,373 (10,748,044) (11,728,008)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 3,128,188 7,640,896 (29,346) (835,892)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 11,710,305 17,305,543 (10,908,235) (12,808,534)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (40,441) -- -- --
Realized Gain on Investment -- -- -- --
Return of Capital -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (40,441) -- -- --
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 677,100,271 403,934,995 468,800,872 537,797,863
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 40,441 -- -- --
COST OF SHARES REDEEMED (640,426,112) (373,442,213) (456,638,548) (543,363,134)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 36,714,600 30,492,782 12,162,324 (5,565,271)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 48,384,464 47,798,325 1,254,089 (18,373,805)
NET ASSETS--BEGINNING OF YEAR 81,815,566 34,017,241 17,821,535 36,195,340
=================================================================================================================================
NET ASSETS--END OF YEAR $ 130,200,030 $ 81,815,566 $ 19,075,624 $ 17,821,535
=================================================================================================================================
OTC FUND
- ---------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2004 2003
- ---------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (226,946) $ (1,346,818)
Net Realized Gain (Loss) on Investments 6,075,248 9,844,899
Net Change in Unrealized Appreciation (Depreciation)
on Investments 2,159,542 32,550,500
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 8,007,844 41,048,581
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
Realized Gain on Investment -- --
Return of Capital -- --
- ---------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
=============================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 839,741,462 650,650,500
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- --
COST OF SHARES REDEEMED (784,108,500) (641,498,381)
=============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 55,632,962 9,152,119
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 63,640,806 50,200,700
NET ASSETS--BEGINNING OF YEAR 127,835,515 77,634,815
=============================================================================================
NET ASSETS--END OF YEAR $ 191,476,321 $ 127,835,515
=============================================================================================
See Notes to Financial Statements.
166 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
ARKTOS FUND TITAN 500 FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (154,079) $ (273,979) $ 24,721 $ (82,522)
Net Realized Gain (Loss) on Investments (14,449,007) (18,845,261) 1,966,051 5,545,055
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,366,638 (2,058,464) 103,201 2,265,688
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (13,236,448) (21,177,704) 2,093,973 7,728,221
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
Realized Gain on Investment -- (463,435) (3,242,906) (3,872,004)
Return of Capital -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (463,435) (3,242,906) (3,872,004)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 1,086,893,530 653,818,874 320,162,911 196,423,855
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- 463,435 7,114,909 3,872,004
COST OF SHARES REDEEMED (1,084,292,470) (622,306,624) (327,504,490) (175,845,415)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 2,601,060 31,975,685 (226,670) 24,450,444
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (10,635,388) 10,334,546 (1,375,603) 28,306,661
NET ASSETS--BEGINNING OF YEAR 34,563,085 24,228,539 30,428,257 2,121,596
=================================================================================================================================
NET ASSETS--END OF YEAR $ 23,927,697 $ 34,563,085 $ 29,052,654 $ 30,428,257
=================================================================================================================================
VELOCITY 100 FUND MEDIUS FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (90,044) $ (156,450) $ (101,397) $ (80,616)
Net Realized Gain (Loss) on Investments (1,679,334) 3,347,909 1,083,497 3,107,517
Net Change in Unrealized Appreciation (Depreciation)
on Investments 902,463 4,022,533 1,521,709 1,694,894
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (866,915) 7,213,992 2,503,809 4,721,795
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (1,275,643) -- -- --
Realized Gain on Investment (75,105) (3,604,922) (1,999,114) (1,635,558)
Return of Capital (411,759) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (1,762,507) (3,604,922) (1,999,114) (1,635,558)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 502,274,497 351,821,838 304,396,861 231,342,986
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 1,762,507 3,604,922 1,999,115 1,635,558
COST OF SHARES REDEEMED (484,440,775) (321,750,298) (291,283,425) (224,227,677)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 19,596,229 33,676,462 15,112,551 8,750,867
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 16,966,807 37,285,532 15,617,246 11,837,104
NET ASSETS--BEGINNING OF YEAR 40,631,995 3,346,463 18,544,297 6,707,193
=================================================================================================================================
NET ASSETS--END OF YEAR $ 57,598,802 $ 40,631,995 $ 34,161,543 $ 18,544,297
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 167
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE
MID-CAP FUND MEKROS FUND
- ---------------------------------------------------------------------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004* 2004 2003
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (2,285) $ (197,859) $ (237,169)
Net Realized Gain (Loss) on Investments (367,573) (888,965) 16,438,576
Net Change in Unrealized Appreciation
(Depreciation) on Investments (40,313) 3,839,510 3,618,279
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (410,171) 2,752,686 19,819,686
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- --
Realized Gain on Investment -- (2,733,522) (13,820,181)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (2,733,522) (13,820,181)
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 25,668,229 976,494,702 550,390,026
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- 2,733,522 13,820,181
COST OF SHARES REDEEMED (23,939,211) (989,593,393) (460,161,802)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,729,018 (10,365,169) 104,048,405
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,318,847 (10,346,005) 110,047,910
NET ASSETS - BEGINNING OF PERIOD -- 122,994,801 12,946,891
===============================================================================================================
NET ASSETS - END OF PERIOD $ 1,318,847 $ 112,648,796 $ 122,994,801
===============================================================================================================
INVERSE U.S. GOVERNMENT
SMALL-CAP FUND BOND FUND
- ---------------------------------------------------------------------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004* 2004 2003
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (30,312) $ 1,854,888 $ 1,199,536
Net Realized Gain (Loss) on Investments (2,546,925) (3,325,624) 591,756
Net Change in Unrealized Appreciation
(Depreciation) on Investments (103,483) 814,711 (715,625)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (2,680,720) (656,025) 1,075,667
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- (1,854,888) (1,202,776)
Realized Gain on Investment -- (2,222,111) (1,602,254)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (4,076,999) (2,805,030)
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 160,480,852 538,567,559 387,766,317
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- 4,076,908 2,805,030
COST OF SHARES REDEEMED (153,456,336) (554,560,732) (348,673,786)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 7,024,516 (11,916,265) 41,897,561
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 4,343,796 (16,649,289) 40,168,198
NET ASSETS - BEGINNING OF PERIOD -- 65,358,381 25,190,183
===============================================================================================================
NET ASSETS - END OF PERIOD $ 4,343,796 $ 48,709,092 $ 65,358,381
===============================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 1, 2003.
See Notes to Financial Statements.
168 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
JUNO LARGE-CAP
FUND EUROPE FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003** 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (1,440,384) $ (106,644) $ (64,263) $ (84,676)
Net Realized Gain (Loss) on Investments (6,676,389) 679,493 6,057,473 5,604,710
Net Change in Unrealized Appreciation
(Depreciation) on Investments 640,505 (79,239) (474,828) 1,446,579
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (7,476,268) 493,610 5,518,382 6,966,613
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (6,158,766) --
Realized Gain on Investment (493,610) -- (146,665) (6,433,360)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (493,610) -- (6,305,431) (6,433,360)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 340,781,200 195,649,061 233,795,199 149,850,310
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 493,610 -- 6,305,431 6,433,360
COST OF SHARES REDEEMED (314,561,977) (173,787,830) (222,761,894) (121,456,209)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 26,712,833 21,861,231 17,338,736 34,827,461
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 18,742,955 22,354,841 16,551,687 35,360,714
NET ASSETS - BEGINNING OF PERIOD 22,354,841 -- 38,442,562 3,081,848
=================================================================================================================================
NET ASSETS - END OF PERIOD $ 41,097,796 $ 22,354,841 $ 54,994,249 $ 38,442,562
=================================================================================================================================
LARGE-CAP
JAPAN FUND
- ---------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2004 2003
- ---------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (92,520) $ (91,270)
Net Realized Gain (Loss) on Investments (6,780,607) (4,377,773)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 369,019 398,460
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (6,504,108) (4,070,583)
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
Realized Gain on Investment -- --
- ---------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
=============================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 274,604,719 224,872,561
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- --
COST OF SHARES REDEEMED (265,414,004) (212,850,090)
=============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 9,190,715 12,022,471
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,686,607 7,951,888
NET ASSETS - BEGINNING OF PERIOD 11,541,484 3,589,596
=============================================================================================
NET ASSETS - END OF PERIOD $ 14,228,091 $ 11,541,484
=============================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 169
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
LONG DYNAMIC INVERSE DYNAMIC SMALL-CAP
DOW 30 FUND DOW 30 FUND VALUE FUND
- ---------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004* 2004* 2004*
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 23,922 $ (1,756) $ 12,108
Net Realized Gain (Loss) on Investments 833,452 (389,886) 642,562
Net Change in Unrealized Appreciation (Depreciation)
on Investments 366,012 (119,231) 4,318,874
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 1,223,386 (510,873) 4,973,544
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (428,282) -- (22,072)
Realized Gain on Investment (44,981) (75,845) (1,321,637)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (473,263) (75,845) (1,343,709)
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 104,259,013 28,429,636 166,808,498
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 473,263 75,845 1,343,709
COST OF SHARES REDEEMED (95,063,056) (24,734,465) (124,508,526)
===============================================================================================================
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 9,669,220 3,771,016 43,643,681
- ---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 10,419,343 3,184,298 47,273,516
NET ASSETS - BEGINNING OF PERIOD -- -- --
===============================================================================================================
NET ASSETS - END OF PERIOD $ 10,419,343 $ 3,184,298 $ 47,273,516
===============================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004.
See Notes to Financial Statements.
170 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
MID-CAP LARGE-CAP SMALL-CAP MID-CAP
VALUE FUND VALUE FUND GROWTH FUND GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004* 2004* 2004* 2004*
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 597 $ 45,658 $ (116,105) $ (43,395)
Net Realized Gain (Loss) on Investments 89,114 (113,593) (404,399) (1,385,920)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,461,223 1,221,109 3,216,988 1,415,176
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 1,550,934 1,153,174 2,696,484 (14,139)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (2,716) (43,247) -- --
Realized Gain on Investment (1,028,497) (122,982) (388,437) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (1,031,213) (166,229) (388,437) --
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 145,080,950 112,952,676 206,473,307 112,362,627
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 1,031,214 166,229 388,437 --
COST OF SHARES REDEEMED (127,153,333) (102,961,971) (178,900,425) (91,646,456)
=================================================================================================================================
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 18,958,831 10,156,934 27,961,319 20,716,171
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 19,478,552 11,143,879 30,269,366 20,702,032
NET ASSETS - BEGINNING OF PERIOD -- -- -- --
=================================================================================================================================
NET ASSETS - END OF PERIOD $ 19,478,552 $ 11,143,879 $ 30,269,366 $ 20,702,032
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 171
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP SECTOR ROTATION
GROWTH FUND FUND
- ---------------------------------------------------------------------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004* 2004 2003
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 111,669 $ (119,761) $ (86,467)
Net Realized Gain (Loss) on Investments (424,470) 456,383 199,930
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,026,831 1,404,987 2,671,217
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 714,030 1,741,609 2,784,680
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (107,055) -- --
Realized Gain on Investment (125,768) -- --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (232,823) -- --
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 110,437,239 46,275,706 34,469,458
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 232,823 -- --
COST OF SHARES REDEEMED (91,139,545) (40,863,604) (23,329,062)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 19,530,517 5,412,102 11,140,396
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 20,011,724 7,153,711 13,925,076
NET ASSETS - BEGINNING OF PERIOD -- 20,593,731 6,668,655
===============================================================================================================
NET ASSETS - END OF PERIOD $ 20,011,724 $ 27,747,442 $ 20,593,731
===============================================================================================================
U.S. GOVERNMENT
MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2004 2003
- ---------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 599,121 $ 31,665
Net Realized Gain (Loss) on Investments -- (33)
Net Change in Unrealized Appreciation (Depreciation)
on Investments -- --
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 599,121 31,632
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (599,121) (31,663)
Realized Gain on Investment -- --
- ---------------------------------------------------------------------------------------------
Total Distributions to Shareholders (599,121) (31,663)
=============================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 1,972,975,071 2,702,076,887
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 599,199 31,663
COST OF SHARES REDEEMED (2,038,389,174) (2,728,568,210)
=============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (64,814,904) (26,459,660)
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (64,814,904) (26,459,691)
NET ASSETS - BEGINNING OF PERIOD 232,492,901 258,952,592
=============================================================================================
NET ASSETS - END OF PERIOD $ 167,677,997 $ 232,492,901
=============================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004.
See Notes to Financial Statements.
172 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
BASIC
BANKING FUND MATERIALS FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 208,716 $ 87,982 $ 95,937 $ 15,788
Net Realized Gain (Loss) on Investments 1,845,200 1,068,269 2,971,342 1,357,868
Net Change in Unrealized Appreciation (Depreciation)
on Investments 313,551 939,638 2,699,467 3,456,467
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 2,367,467 2,095,889 5,766,746 4,830,123
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (87,982) (48,501) (15,788) (8,471)
Realized Gain on Investment (675,576) -- (896,336) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (763,558) (48,501) (912,124) (8,471)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 124,491,844 100,981,465 183,981,709 138,932,693
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 763,558 48,501 912,123 8,471
COST OF SHARES REDEEMED (122,054,600) (90,970,052) (188,147,370) (100,102,785)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 3,200,802 10,059,914 (3,253,538) 38,838,379
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 4,804,711 12,107,302 1,601,084 43,660,031
NET ASSETS - BEGINNING OF PERIOD 17,115,028 5,007,726 44,560,693 900,662
=================================================================================================================================
NET ASSETS - END OF PERIOD $ 21,919,739 $ 17,115,028 $ 46,161,777 $ 44,560,693
=================================================================================================================================
BIOTECHNOLOGY CONSUMER
FUND PRODUCTS FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (254,024) $ (157,021) $ 98,701 $ 8,514
Net Realized Gain (Loss) on Investments (2,732,481) (540,830) (1,467,922) 484,691
Net Change in Unrealized Appreciation (Depreciation)
on Investments (376,774) 1,733,969 1,868,349 822,685
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (3,363,279) 1,036,118 499,128 1,315,890
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (8,514) (7,419)
Realized Gain on Investment -- -- (366,859) (79,427)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (375,373) (86,846)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 199,318,738 145,115,461 164,280,345 66,804,158
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- 375,373 86,846
COST OF SHARES REDEEMED (201,924,540) (137,169,386) (149,165,001) (65,454,686)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (2,605,802) 7,946,075 15,490,717 1,436,318
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (5,969,081) 8,982,193 15,614,472 2,665,362
NET ASSETS - BEGINNING OF PERIOD 12,557,412 3,575,219 8,818,460 6,153,098
=================================================================================================================================
NET ASSETS - END OF PERIOD $ 6,588,331 $ 12,557,412 $ 24,432,932 $ 8,818,460
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 173
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
ELECTRONICS ENERGY
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (113,401) $ (164,309) $ 16,641 $ 2,902
Net Realized Gain (Loss) on Investments 452,350 (1,750,944) 3,764,934 328,296
Net Change in Unrealized Appreciation (Depreciation)
on Investments (1,990,020) 3,018,119 7,203,445 1,861,724
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,651,071) 1,102,866 10,985,020 2,192,922
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (2,902) --
Realized Gain on Investment -- -- (19,777) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (22,679) --
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 127,993,084 160,585,681 211,381,026 112,136,062
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- 22,679 --
COST OF SHARES REDEEMED (141,970,932) (138,154,139) (193,697,442) (88,330,573)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (13,977,848) 22,431,542 17,706,263 23,805,489
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (15,628,919) 23,534,408 28,668,604 25,998,411
NET ASSETS - BEGINNING OF YEAR 27,918,249 4,383,841 31,832,058 5,833,647
=================================================================================================================================
NET ASSETS - END OF YEAR $ 12,289,330 $ 27,918,249 $ 60,500,662 $ 31,832,058
=================================================================================================================================
ENERGY SERVICES
FUND
- ---------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2004 2003
- ---------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (240,027) $ (49,438)
Net Realized Gain (Loss) on Investments (666,151) (634,164)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 4,338,770 372,677
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 3,432,592 (310,925)
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
Realized Gain on Investment -- --
- ---------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
=============================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 194,518,793 129,065,660
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- --
COST OF SHARES REDEEMED (176,389,181) (125,427,736)
=============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 18,129,612 3,637,924
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 21,562,204 3,326,999
NET ASSETS - BEGINNING OF YEAR 7,754,281 4,427,282
=============================================================================================
NET ASSETS - END OF YEAR $ 29,316,485 $ 7,754,281
=============================================================================================
See Notes to Financial Statements.
174 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL SERVICES HEALTH CARE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 227,270 $ 56,477 $ (194,293) $ (119,055)
Net Realized Gain (Loss) on Investments 2,993,017 304,534 (4,048,919) 77,261
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,012,134 922,451 2,251,151 1,826,299
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 4,232,421 1,283,462 (1,992,061) 1,784,505
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (56,477) (17,051) -- --
Realized Gain on Investment -- -- (280,656) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (56,477) (17,051) (280,656) --
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 135,746,956 150,394,455 187,573,599 165,734,777
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 56,477 17,051 280,657 --
COST OF SHARES REDEEMED (110,380,869) (138,844,482) (183,025,743) (144,804,247)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 25,422,564 11,567,024 4,828,513 20,930,530
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 29,598,508 12,833,435 2,555,796 22,715,035
NET ASSETS - BEGINNING OF YEAR 15,581,191 2,747,756 27,879,518 5,164,483
=================================================================================================================================
NET ASSETS - END OF YEAR $ 45,179,699 $ 15,581,191 $ 30,435,314 $ 27,879,518
=================================================================================================================================
INTERNET LEISURE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (384,937) $ (140,230) $ (175,881) $ (38,085)
Net Realized Gain (Loss) on Investments (1,703,305) (784,989) 2,075,047 544,615
Net Change in Unrealized Appreciation (Depreciation)
on Investments 3,280,437 3,854,984 3,561,300 1,913,050
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 1,192,195 2,929,765 5,460,466 2,419,580
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
Realized Gain on Investment -- -- (176,049) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (176,049) --
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 173,982,802 101,859,827 142,260,736 124,654,537
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- 176,049 --
COST OF SHARES REDEEMED (163,354,081) (83,391,529) (125,982,350) (99,072,809)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 10,628,721 18,468,298 16,454,435 25,581,728
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 11,820,916 21,398,063 21,738,852 28,001,308
NET ASSETS - BEGINNING OF YEAR 25,101,009 3,702,946 30,016,036 2,014,728
=================================================================================================================================
NET ASSETS - END OF YEAR $ 36,921,925 $ 25,101,009 $ 51,754,888 $ 30,016,036
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 175
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
PRECIOUS REAL ESTATE
METALS FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (191,509) $ (99,371) $ 600,333 $ 262,380
Net Realized Gain (Loss) on Investments (4,346,436) (762,245) (1,998,721) 805,833
Net Change in Unrealized Appreciation (Depreciation)
on Investments (7,741,810) 8,327,537 3,905,052 1,090,483
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (12,279,755) 7,465,921 2,506,664 2,158,696
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (114,086) (316,642)
Realized Gain on Investment -- -- (385,202) (539,225)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (499,288) (855,867)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 227,819,060 222,563,028 250,440,684 114,889,069
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- 499,288 855,867
COST OF SHARES REDEEMED (225,101,989) (224,261,831) (238,214,879) (106,766,765)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 2,717,071 (1,698,803) 12,725,093 8,978,171
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (9,562,684) 5,767,118 14,732,469 10,281,000
NET ASSETS -- BEGINNING OF YEAR 44,605,754 38,838,636 12,182,722 1,901,722
=================================================================================================================================
NET ASSETS -- END OF YEAR $ 35,043,070 $ 44,605,754 $ 26,915,191 $ 12,182,722
=================================================================================================================================
RETAILING
FUND
- ---------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2004 2003
- ---------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (148,011) $ (104,905)
Net Realized Gain (Loss) on Investments (260,600) 156,865
Net Change in Unrealized Appreciation (Depreciation)
on Investments 1,158,987 2,495,981
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 750,376 2,547,941
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
Realized Gain on Investment (865,536) (64,492)
- ---------------------------------------------------------------------------------------------
Total Distributions to Shareholders (865,536) (64,492)
=============================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 100,889,298 86,085,351
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 865,536 64,492
COST OF SHARES REDEEMED (95,988,454) (76,585,644)
=============================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 5,766,380 9,564,199
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 5,651,220 12,047,648
NET ASSETS -- BEGINNING OF YEAR 15,149,169 3,101,521
=============================================================================================
NET ASSETS -- END OF YEAR $ 20,800,389 $ 15,149,169
=============================================================================================
See Notes to Financial Statements.
176 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
TECHNOLOGY TELECOMMUNICATIONS
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (63,269) $ (200,746) $ (15,905) $ (11,378)
Net Realized Gain (Loss) on Investments (1,513,746) 454,360 (320,328) (581,652)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 236,415 2,144,236 2,929,686 1,614,830
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,340,600) 2,397,850 2,593,453 1,021,800
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
Realized Gain on Investment (1,130,753) (1,373,910) -- (77)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (1,130,753) (1,373,910) -- (77)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 120,344,071 167,024,357 169,150,792 66,566,298
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 1,130,753 1,373,910 -- 77
COST OF SHARES REDEEMED (119,725,789) (153,802,069) (156,096,553) (59,150,550)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,749,035 14,596,198 13,054,239 7,415,825
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (722,318) 15,620,138 15,647,692 8,437,548
NET ASSETS -- BEGINNING OF YEAR 20,641,083 5,020,945 14,543,088 6,105,540
=================================================================================================================================
NET ASSETS -- END OF YEAR $ 19,918,765 $ 20,641,083 $ 30,190,780 $ 14,543,088
=================================================================================================================================
TRANSPORTATION UTILITIES
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (148,396) $ (29,296) $ 313,329 $ 265,543
Net Realized Gain (Loss) on Investments (1,111,192) 399,470 1,405,192 1,934,205
Net Change in Unrealized Appreciation (Depreciation)
on Investments 7,775,218 385,698 1,370,754 (101,993)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 6,515,630 755,872 3,089,275 2,097,755
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (265,543) (176,841)
Realized Gain on Investment (315,578) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (315,578) -- (265,543) (176,841)
=================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 122,599,361 43,242,848 138,522,407 183,355,226
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 315,578 -- 265,543 176,841
COST OF SHARES REDEEMED (89,813,713) (42,267,397) (133,139,508) (195,868,474)
=================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 33,101,226 975,451 5,648,442 (12,336,407)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 39,301,278 1,731,323 8,472,174 (10,415,493)
NET ASSETS -- BEGINNING OF YEAR 8,032,151 6,300,828 13,430,018 23,845,511
=================================================================================================================================
NET ASSETS -- END OF YEAR $ 47,333,429 $ 8,032,151 $ 21,902,192 $ 13,430,018
=================================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 177
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 REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET FROM
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED RETURN OF
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS CAPITAL
- ----------------------------------------------------------------------------------------------------------------------------------
NOVA FUND
DECEMBER 31, 2004 $ 7.21 $ .03 $ 1.02 $ 1.05 $ (--)ss. $ -- $ --
December 31, 2003 5.18 .01 2.02 2.03 -- -- --
December 31, 2002 8.67 (.01) (3.07) (3.08) (.41) -- --
December 31, 2001 13.88 .30 (3.81) (3.51) (1.70) -- --
December 31, 2000 18.57 .74 (4.16) (3.42) (.15) (1.12) --
URSA FUND
DECEMBER 31, 2004 5.77 (.02) (.56) (.58) -- -- --
December 31, 2003 7.57 (.04) (1.76) (1.80) -- -- --
December 31, 2002 6.29 (.02) 1.38 1.36 (.08) -- --
December 31, 2001 6.09 .12 .88 1.00 (.80) -- --
December 31, 2000 5.35 .22 .70 .92 (.18) -- --
OTC FUND
DECEMBER 31, 2004 13.16 (.02) 1.25 1.23 -- -- --
December 31, 2003 9.05 (.13) 4.24 4.11 -- -- --
December 31, 2002 14.80 (.17) (5.58) (5.75) -- -- --
December 31, 2001 22.83 (.23) (7.80) (8.03) -- -- --
December 31, 2000 38.52 (.44) (13.50) (13.94) -- (1.75) --
ARKTOS FUND
DECEMBER 31, 2004 24.09 (.08) (2.77) (2.85) -- -- --
December 31, 2003 39.04 (.22) (14.33) (14.55) -- (.40) --
December 31, 2002 29.48 (.19) 10.22 10.03 (.47) -- --
December 31, 2001* 25.00 .03 4.45 4.48 -- -- --
TITAN 500 FUND
DECEMBER 31, 2004 21.59 .02 2.98 3.00 -- (4.76) --
December 31, 2003 16.09 (.11) 8.95 8.84 -- (3.34) --
December 31, 2002 29.87 (.09) (13.65) (13.74) -- (.04) --
December 31, 2001* 25.00 (.25) 5.12 4.87 -- -- --
VELOCITY 100 FUND
DECEMBER 31, 2004 21.73 (.06) 2.76 2.70 (.97) (.06) (.31)
December 31, 2003 11.90 (.21) 11.95 11.74 -- (1.91) --
December 31, 2002 38.97 (.13) (26.94) (27.07) -- -- --
December 31, 2001* 25.00 (.59) 14.56 13.97 -- -- --
MEDIUS FUND
DECEMBER 31, 2004 24.74 (.09) 4.96 4.87 -- (3.11) --
December 31, 2003 17.77 (.12) 9.44 9.32 -- (2.35) --
December 31, 2002 31.21 (.12) (7.18) (7.30) -- (6.14) --
December 31, 2001* 25.00 (.20) 6.88 6.68 -- (.47) --
RATIOS TO
AVERAGE NET ASSETS:
----------------------------------
NET INCREASE NET ASSET NET NET ASSETS,
(DECREASE) IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF
TOTAL NET ASSET END OF INVESTMENT TOTAL INCOME TURNOVER PERIOD (000'S
DISTRIBUTIONS VALUE PERIOD RETURN EXPENSES (LOSS) RATE*** OMITTED)
- ---------------------------------------------------------------------------------------------------------------------------------
NOVA FUND
DECEMBER 31, 2004 $ (--)ss. $ 1.05 $ 8.26 14.62% 1.46% 0.41% 654% $130,200
December 31, 2003 -- 2.03 7.21 39.19% 1.54% 0.09% 729% 81,816
December 31, 2002 (.41) (3.49) 5.18 (35.72)% 1.72% (0.14)% 570% 34,017
December 31, 2001 (1.70) (5.21) 8.67 (23.58)% 1.45% 2.61% -- 60,941
December 31, 2000 (1.27) (4.69) 13.88 (20.30)% 1.42% 4.45% -- 178,118
URSA FUND
DECEMBER 31, 2004 -- (.58) 5.19 (10.05)% 1.62% (0.28)% -- 19,076
December 31, 2003 -- (1.80) 5.77 (23.78)% 1.67% (0.59)% -- 17,822
December 31, 2002 (.08) 1.28 7.57 21.64% 1.79% (0.24)% -- 36,195
December 31, 2001 (.80) .20 6.29 14.99% 1.89% 1.85% -- 18,997
December 31, 2000 (.18) .74 6.09 16.05% 1.59% 4.02% -- 31,829
OTC FUND
DECEMBER 31, 2004 -- 1.23 14.39 9.35% 1.47% (0.17)% 418% 191,476
December 31, 2003 -- 4.11 13.16 45.41% 1.53% (1.20)% 482% 127,836
December 31, 2002 -- (5.75) 9.05 (38.85)% 1.74% (1.58)% 183% 77,635
December 31, 2001 -- (8.03) 14.80 (35.17)% 1.45% (1.31)% 139% 164,619
December 31, 2000 (1.75) (15.69) 22.83 (38.19)% 1.46% (1.23)% 324% 420,674
ARKTOS FUND
DECEMBER 31, 2004 -- (2.85) 21.24 (11.83)% 1.64% (0.35)% -- 23,928
December 31, 2003 (.40) (14.95) 24.09 (37.37)% 1.68% (0.73)% -- 34,563
December 31, 2002 (.47) 9.56 39.04 33.85% 1.77% (0.49)% -- 24,229
December 31, 2001* -- 4.48 29.48 17.92% 2.23%** 0.10%** -- 5,955
TITAN FUND
DECEMBER 31, 2004 (4.76) (1.76) 19.83 16.90% 1.65% 0.09% 974% 29,053
December 31, 2003 (3.34) 5.50 21.59 54.94% 1.69% (0.55)% 1,085% 30,428
December 31, 2002 (.04) (13.78) 16.09 (46.00)% 1.74% (0.49)% -- 2,122
December 31, 2001* -- 4.87 29.87 19.48% 2.22%** (1.11)%** -- 311
VELOCITY FUND
DECEMBER 31, 2004 (1.34) 1.36 23.09 14.21% 1.65% (0.29)% 662% 57,599
December 31, 2003 (1.91) 9.83 21.73 98.63% 1.71% (1.10)% 959% 40,632
December 31, 2002 -- (27.07) 11.90 (69.46)% 1.77% (0.79)% -- 3,346
December 31, 2001* -- 13.97 38.97 55.88% 2.34%** (1.77)%** -- 477
MEDIUS FUND
DECEMBER 31, 2004 (3.11) 1.76 26.50 22.14% 1.64% (0.37)% 866% 34,162
December 31, 2003 (2.35) 6.97 24.74 52.43% 1.70% (0.54)% 1,665% 18,544
December 31, 2002 (6.14) (13.44) 17.77 (24.44)% 1.75% (0.49)% 4,320% 6,707
December 31, 2001* (.47) 6.21 31.21 26.67% 2.27%** (0.87)%** 3,707% 754
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 21, 2001--ARKTOS FUND;OCTOBER
1, 2001--TITAN 500 FUND, VELOCITY 100 FUND AND MEDIUS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.003782097.
See Notes to Financial Statements.
178 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- -----------------------------------------------------------------------------------------------------------
INVERSE MID-CAP FUND
DECEMBER 31, 2004* $50.00 $(.06) $ (5.91) $ (5.97) $ --
MEKROS FUND
DECEMBER 31, 2004 29.75 (.10) 6.95 6.85 --
December 31, 2003 20.11 (.18) 13.11 12.93 --
December 31, 2002 31.91 (.17) (11.08) (11.25) --
December 31, 2001* 25.00 (.31) 7.56 7.25 --
INVERSE SMALL-CAP FUND
DECEMBER 31, 2004* 50.00 (.10) (7.07) (7.17) --
U.S. GOVERNMENT BOND FUND
DECEMBER 31, 2004 11.67 .40 .54 .94 (.40)
December 31, 2003 13.08 .41 (.52) (.11) (.41)
December 31, 2002 11.44 .44 1.64 2.08 (.44)
December 31, 2001 11.80 .37 (.36) .01 (.37)
December 31, 2000 10.17 .38 1.63 2.01 (.38)
JUNO FUND
DECEMBER 31, 2004 24.82 (.66) (1.98) (2.64) --
December 31, 2003* 25.00 (.13) (.05) (.18) --
LARGE-CAP EUROPE FUND
DECEMBER 31, 2004 22.87 (.05) 3.71 3.66 (3.82)
December 31, 2003 19.52 (.17) 8.58 8.41 --
December 31, 2002 28.01 (.09) (7.84) (7.93) (.01)
December 31, 2001* 25.00 (.16) 3.17 3.01 --
LARGE-CAP JAPAN FUND
DECEMBER 31, 2004 25.17 (.14) 2.74 2.60 --
December 31, 2003 18.29 (.16) 7.04 6.88 --
December 31, 2002 21.91 (.08) (3.46) (3.54) --
December 31, 2001* 25.00 (.16) (2.93) (3.09) --
LONG DYNAMIC DOW 30 FUND
DECEMBER 31, 2004* 25.00 .14 2.03 2.17 (1.16)
INVERSE DYNAMIC DOW 30 FUND
DECEMBER 31, 2004* 50.00 (.03) (5.71) (5.74) --
SMALL-CAP VALUE FUND
DECEMBER 31, 2004* 25.00 .01 4.50 4.51 (.01)
MID-CAP VALUE FUND
DECEMBER 31, 2004* 25.00 -- 3.80 3.80 (--)ss.
LARGE-CAP VALUE FUND
DECEMBER 31, 2004* 25.00 .12 3.00 3.12 (.11)
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE,
REALIZED TOTAL NET ASSET END OF
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD
- --------------------------------------------------------------------------------------------
INVERSE MID-CAP FUND
DECEMBER 31, 2004* $ -- $ -- $ (5.97) $ 44.03
MEKROS FUND
DECEMBER 31, 2004 (2.95) (2.95) 3.90 33.65
December 31, 2003 (3.29) (3.29) 9.64 29.75
December 31, 2002 (.55) (.55) (11.80) 20.11
December 31, 2001* (.34) (.34) 6.91 31.91
INVERSE SMALL-CAP FUND
DECEMBER 31, 2004* -- -- (7.17) 42.83
U.S. GOVERNMENT BOND FUND
DECEMBER 31, 2004 (.33) (.73) .21 11.88
December 31, 2003 (.89) (1.30) (1.41) 11.67
December 31, 2002 -- (.44) 1.64 13.08
December 31, 2001 -- (.37) (.36) 11.44
December 31, 2000 -- (.38) 1.63 11.80
JUNO FUND
DECEMBER 31, 2004 (.23) (.23) (2.87) 21.95
December 31, 2003* -- -- (.18) 24.82
LARGE-CAP EUROPE FUND
DECEMBER 31, 2004 (.09) (3.91) (.25) 22.62
December 31, 2003 (5.06) (5.06) 3.35 22.87
December 31, 2002 (.55) (.56) (8.49) 19.52
December 31, 2001* -- -- 3.01 28.01
LARGE-CAP JAPAN FUND
DECEMBER 31, 2004 -- -- 2.60 27.77
December 31, 2003 -- -- 6.88 25.17
December 31, 2002 (.08) (.08) (3.62) 18.29
December 31, 2001* -- -- (3.09) 21.91
LONG DYNAMIC DOW 30 FUND
DECEMBER 31, 2004* (.12) (1.28) .89 25.89
INVERSE DYNAMIC DOW 30 FUND
DECEMBER 31, 2004* (1.04) (1.04) (6.78) 43.22
SMALL-CAP VALUE FUND
DECEMBER 31, 2004* (.66) (.67) 3.84 28.84
MID-CAP VALUE FUND
DECEMBER 31, 2004* (1.72) (1.72) 2.08 27.08
LARGE-CAP VALUE FUND
DECEMBER 31, 2004* (.33) (.44) 2.68 27.68
RATIOS TO
AVERAGE NET ASSETS:
----------------------------------
NET NET ASSETS,
TOTAL INVESTMENT PORTFOLIO END OF
INVESTMENT GROSS NET OPERATING INCOME TURNOVER PERIOD (000's
RETURN EXPENSES EXPENSES EXPENSES++ (LOSS) RATE*** OMITTED)
---------- -------- -------- ----------- ---------- ---------- -------------
INVERSE MID-CAP FUND
DECEMBER 31, 2004* (11.94)% 1.62%** 1.62%** 1.62%** (0.17)%** -- $ 1,319
MEKROS FUND
DECEMBER 31, 2004 25.20% 1.65% 1.65% 1.65% (0.32)% 1171% 112,649
December 31, 2003 64.28% 1.70% 1.70% 1.70% (0.66)% 1135% 122,995
December 31, 2002 (35.45)% 1.74% 1.74% 1.74% (0.70)% 1940% 12,947
December 31, 2001* 28.97% 2.26%** 2.26%** 2.26%** (0.96)%** 848% 8,524
INVERSE SMALL-CAP FUND
DECEMBER 31, 2004* (14.34)% 1.65%** 1.65%** 1.65%** (0.29)%** -- 4,344
U.S. GOVERNMENT BOND FUND
DECEMBER 31, 2004 8.42% 1.21% 1.21% 1.21% 3.36% 1318% 48,709
December 31, 2003 (0.64)% 1.23% 1.23% 1.23% 3.26% 1272% 65,358
December 31, 2002 18.62% 1.24% 1.24% 1.24% 3.65% 1239% 25,190
December 31, 2001 0.08% 2.37% 2.01% 2.01% 3.22% 1247% 4,521
December 31, 2000 20.16% 1.89% 1.89% 1.89% 3.47% 1505% 5,011
JUNO FUND
DECEMBER 31, 2004 (10.67)% 5.02% 5.02% 1.63% (2.86)% -- 41,098
December 31, 2003* (0.72)% 1.69%** 1.69%** 1.69%** (0.74)%** -- 22,355
LARGE-CAP EUROPE FUND
DECEMBER 31, 2004 16.15% 1.64% 1.64% 1.64% (0.23)% -- 54,994
December 31, 2003 43.08% 1.70% 1.70% 1.70% (0.75)% -- 38,443
December 31, 2002 (28.35)% 1.78% 1.78% 1.78% (0.41)% -- 3,082
December 31, 2001* 12.04% 2.17%** 2.17%** 2.17%** (0.55)%** -- 1,322
LARGE-CAP JAPAN FUND
DECEMBER 31, 2004 10.33% 1.63% 1.63% 1.63% (0.50)% -- 14,228
December 31, 2003 37.62% 1.69% 1.69% 1.69% (0.75)% -- 11,541
December 31, 2002 (16.20)% 1.80% 1.80% 1.80% (0.38)% -- 3,590
December 31, 2001* (12.36)% 2.23%** 2.23%** 2.23%** (0.62)%** -- 643
LONG DYNAMIC DOW 30 FUND
DECEMBER 31, 2004* 8.65% 1.63%** 1.63%** 1.63%** 0.91%** 907% 10,419
INVERSE DYNAMIC DOW 30 FUND
DECEMBER 31, 2004* (11.47)% 1.62%** 1.62%** 1.62%** (0.09)%** -- 3,184
SMALL-CAP VALUE FUND
DECEMBER 31, 2004* 18.03% 1.46%** 1.46%** 1.46%** 0.07%** 507% 47,274
MID-CAP VALUE FUND
DECEMBER 31, 2004* 15.20% 1.48%** 1.48%** 1.48%** 0.01%** 1173% 19,479
LARGE-CAP VALUE FUND
DECEMBER 31, 2004* 12.49% 1.45%** 1.45%** 1.45%** 0.69%** 983% 11,144
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 1, 2001 -- MEKROS FUND,
LARGE-CAP EUROPE FUND AND LARGE-CAP JAPAN FUND; MAY 1, 2003 -- JUNO FUND;
MAY 3, 2004 -- INVERSE MID-CAP FUND, INVERSE SMALL-CAP FUND, LONG DYNAMIC
DOW 30 FUND, INVERSE DYNAMIC DOW 30 FUND, SMALL-CAP VALUE FUND, MID-CAP
VALUE FUND AND LARGE-CAP VALUE FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
++ OPERATING EXPENSES EXCLUDE INTEREST EXPENSE FROM SECURITIES SOLD SHORT.
ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00454.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 179
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- ------------------------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
DECEMBER 31, 2004* $ 25.00 $(.17) $ 4.12 $ 3.95 $ --
MID-CAP GROWTH FUND
DECEMBER 31, 2004* 25.00 (.13) 2.26 2.13 --
LARGE-CAP GROWTH FUND
DECEMBER 31, 2004* 25.00 .36 .71 1.07 (.15)
SECTOR ROTATION FUND
DECEMBER 31, 2004 10.08 (.05) 1.13 1.08 --
December 31, 2003 7.76 (.07) 2.39 2.32 --
December 31, 2002* 10.00 (.01) (2.23) (2.24) --
U.S. GOVERNMENT MONEY MARKET FUND
DECEMBER 31, 2004 1.00 --ss.ss.ss. -- -- (--)ss.ss.ss.
December 31, 2003 1.00 --ss.ss. -- -- (--)ss.ss.
December 31, 2002 1.00 --ss. -- -- (--)ss.
December 31, 2001 1.00 .03 -- .03 (.03)
December 31, 2000 1.00 .05 -- .05 (.05)
BANKING FUND
DECEMBER 31, 2004 32.50 .35 4.38 4.73 (.11)
December 31, 2003 24.95 .36 7.52 7.88 (.33)
December 31, 2002 25.21 .28 (.47) (.19) (.07)
December 31, 2001* 25.00 .45 (.24) .21 --
BASIC MATERIALS FUND
DECEMBER 31, 2004 27.69 .09 5.58 5.67 (.01)
December 31, 2003 21.07 .04 6.59 6.63 (.01)
December 31, 2002 24.21 .09 (3.17) (3.08) (.06)
December 31, 2001* 25.00 .22 (1.01) (.79) --
BIOTECHNOLOGY FUND
DECEMBER 31, 2004 19.10 (.29) .50 .21 --
December 31, 2003 13.44 (.28) 5.94 5.66 --
December 31, 2002 24.67 (.28) (10.91) (11.19) --
December 31, 2001* 25.00 (.55) .22 (.33) --
CONSUMER PRODUCTS FUND
DECEMBER 31, 2004 29.39 .11 3.78 3.89 (.01)
December 31, 2003 24.36 .01 5.29 5.30 (.02)
December 31, 2002 25.32 .04 (.95) (.91) (.01)
December 31, 2001* 25.00 .05 .27 .32 --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
DECEMBER 31, 2004* $ (.40) $ (.40) $ 3.55 $ 28.55 15.82%
MID-CAP GROWTH FUND
DECEMBER 31, 2004* -- -- 2.13 27.13 8.52%
LARGE-CAP GROWTH FUND
DECEMBER 31, 2004* (.17) (.32) .75 25.75 4.26%
SECTOR ROTATION FUND
DECEMBER 31, 2004 -- -- 1.08 11.16 10.71%
December 31, 2003 -- -- 2.32 10.08 29.97%
December 31, 2002* -- -- (2.24) 7.76 (22.40)%
U.S. GOVERNMENT MONEY MARKET FUND
DECEMBER 31, 2004 -- (--)ss.ss.ss. -- 1.00 0.23%
December 31, 2003 -- (--)ss.ss. -- 1.00 0.01%
December 31, 2002 -- (--)ss. -- 1.00 0.47%
December 31, 2001 -- (.03) -- 1.00 2.77%
December 31, 2000 -- (.05) -- 1.00 5.20%
BANKING FUND
DECEMBER 31, 2004 (.83) (.94) 3.79 36.29 14.74%
December 31, 2003 -- (.33) 7.55 32.50 31.74%
December 31, 2002 -- (.07) (.26) 24.95 (0.78)%
December 31, 2001* -- -- .21 25.21 0.84%
BASIC MATERIALS FUND
DECEMBER 31, 2004 (.69) (.70) 4.97 32.66 20.83%
December 31, 2003 -- (.01) 6.62 27.69 31.46%
December 31, 2002 -- (.06) (3.14) 21.07 (12.75)%
December 31, 2001* -- -- (.79) 24.21 (3.16)%
BIOTECHNOLOGY FUND
DECEMBER 31, 2004 -- -- .21 19.31 1.10%
December 31, 2003 -- -- 5.66 19.10 42.11%
December 31, 2002 (.04) (.04) (11.23) 13.44 (45.35)%
December 31, 2001* -- -- (.33) 24.67 (1.32)%
CONSUMER PRODUCTS FUND
DECEMBER 31, 2004 (.32) (.33) 3.56 32.95 13.30%
December 31, 2003 (.25) (.27) 5.03 29.39 21.86%
December 31, 2002 (.04) (.05) (.96) 24.36 (3.61)%
December 31, 2001* -- -- .32 25.32 1.28%
RATIOS TO
AVERAGE NET ASSETS:
--------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
DECEMBER 31, 2004* 1.46%** 1.46%** (0.93)%** 733% $ 30,269
MID-CAP GROWTH FUND
DECEMBER 31, 2004* 1.46%** 1.46%** (0.75)%** 875% 20,702
LARGE-CAP GROWTH FUND
DECEMBER 31, 2004* 1.46%** 1.46%** 2.12%** 1,087% 20,012
SECTOR ROTATION FUND
DECEMBER 31, 2004 1.63% 1.63% (0.52)% 333% 27,747
December 31, 2003 1.70% 1.70% (0.78)% 401% 20,594
December 31, 2002* 1.69%** 1.69%** (0.16)%** 357% 6,669
U.S. GOVERNMENT MONEY MARKET FUND
DECEMBER 31, 2004 1.19% 1.10% 0.20% -- 167,678
December 31, 2003 1.22% 1.11% 0.01% -- 232,493
December 31, 2002 1.23% 1.23% 0.44% -- 258,953
December 31, 2001 1.19% 1.19% 2.48% -- 96,515
December 31, 2000 1.14% 1.14% 4.99% -- 39,492
BANKING FUND
DECEMBER 31, 2004 1.59% 1.59% 1.02% 884% 21,920
December 31, 2003 1.65% 1.65% 1.24% 1,268% 17,115
December 31, 2002 1.67% 1.67% 1.10% 1,813% 5,008
December 31, 2001* 1.99%** 1.99%** 1.80%** 605% 630
BASIC MATERIALS FUND
DECEMBER 31, 2004 1.59% 1.59% 0.30% 725% 46,162
December 31, 2003 1.67% 1.67% 0.17% 1,175% 44,561
December 31, 2002 1.75% 1.75% 0.38% 1,848% 901
December 31, 2001* 1.95%** 1.95%** 0.85%** 929% 929
BIOTECHNOLOGY FUND
DECEMBER 31, 2004 1.59% 1.59% (1.51)% 1,169% 6,588
December 31, 2003 1.64% 1.64% (1.61)% 1,475% 12,557
December 31, 2002 1.79% 1.79% (1.76)% 3,483% 3,575
December 31, 2001* 2.27%** 2.27%** (2.24)%** 720% 1,959
CONSUMER PRODUCTS FUND
DECEMBER 31, 2004 1.59% 1.59% 0.36% 730% 24,433
December 31, 2003 1.63% 1.63% 0.12% 936% 8,818
December 31, 2002 1.72% 1.72% 0.18% 985% 6,153
December 31, 2001* 2.07%** 2.07%** 0.19%** 285% 1,305
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--BANKING FUND,
BASIC MATERIALS FUND AND BIOTECHNOLOGY FUND; MAY 29, 2001--CONSUMER
PRODUCTS FUND; MAY 1, 2002--SECTOR ROTATION FUND; MAY 3,
2004--SMALL-CAP GROWTH FUND, MID-CAP GROWTH FUND AND LARGE-CAP
GROWTH FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00471.
ss.ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00011.
ss.ss.ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00199.
See Notes to Financial Statements.
180 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- ------------------------------------------------------------------------------------------------------
ELECTRONICS FUND
DECEMBER 31, 2004 $16.88 $(.20) $(3.51) $(3.71) $ --
December 31, 2003 9.94 (.21) 7.15 6.94 --
December 31, 2002 20.64 (.24) (9.67) (9.91) --
December 31, 2001* 25.00 (.43) (3.93) (4.36) --
ENERGY FUND
DECEMBER 31, 2004 22.45 .01 7.23 7.24 (--)ss.
December 31, 2003 18.25 .01 4.19 4.20 --
December 31, 2002 21.10 (.02) (2.83) (2.85) --
December 31, 2001* 25.00 (.11) (3.79) (3.90) --
ENERGY SERVICES FUND
DECEMBER 31, 2004 15.59 (.22) 5.48 5.26 --
December 31, 2003 14.38 (.16) 1.37 1.21 --
December 31, 2002 17.74 (.17) (2.08) (2.25) --
December 31, 2001* 25.00 (.24) (7.02) (7.26) --
FINANCIAL SERVICES FUND
DECEMBER 31, 2004 26.00 .23 4.21 4.44 (.06)
December 31, 2003 20.19 .14 5.70 5.84 (.03)
December 31, 2002 23.90 .09 (3.69) (3.60) --
December 31, 2001* 25.00 (.02) (1.08) (1.10) --
HEALTH CARE FUND
DECEMBER 31, 2004 24.28 (.16) 1.65 1.49 --
December 31, 2003 18.71 (.19) 5.76 5.57 --
December 31, 2002 23.82 (.09) (4.98) (5.07) --
December 31, 2001* 25.00 (.30) (.88) (1.18) --
INTERNET FUND
DECEMBER 31, 2004 14.68 (.23) 2.56 2.33 --
December 31, 2003 8.93 (.20) 5.95 5.75 --
December 31, 2002 15.76 (.17) (6.66) (6.83) --
December 31, 2001* 25.00 (.37) (8.87) (9.24) --
LEISURE FUND
DECEMBER 31, 2004 20.80 (.17) 5.07 4.90 --
December 31, 2003 15.42 (.08) 5.46 5.38 --
December 31, 2002 18.09 (.18) (2.49) (2.67) --
December 31, 2001* 25.00 (.30) (6.61) (6.91) --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- ---------------------------------------------------------------------------------------------------
ELECTRONICS FUND
DECEMBER 31, 2004 $ -- $ -- $(3.71) $13.17 (21.98)%
December 31, 2003 -- -- 6.94 16.88 69.82%
December 31, 2002 (.79) (.79) (10.70) 9.94 (48.21)%
December 31, 2001* -- -- (4.36) 20.64 (17.44)%
ENERGY FUND
DECEMBER 31, 2004 (.01) (.01) 7.23 29.68 32.27%
December 31, 2003 -- -- 4.20 22.45 23.01%
December 31, 2002 -- -- (2.85) 18.25 (13.51)%
December 31, 2001* -- -- (3.90) 21.10 (15.60)%
ENERGY SERVICES FUND
DECEMBER 31, 2004 -- -- 5.26 20.85 33.74%
December 31, 2003 -- -- 1.21 15.59 8.41%
December 31, 2002 (1.11) (1.11) (3.36) 14.38 (12.07)%
December 31, 2001* -- -- (7.26) 17.74 (29.04)%
FINANCIAL SERVICES FUND
DECEMBER 31, 2004 -- (.06) 4.38 30.38 17.12%
December 31, 2003 -- (.03) 5.81 26.00 28.92%
December 31, 2002 (.11) (.11) (3.71) 20.19 (15.10)%
December 31, 2001* -- -- (1.10) 23.90 (4.40)%
HEALTH CARE FUND
DECEMBER 31, 2004 (.31) (.31) 1.18 25.46 6.22%
December 31, 2003 -- -- 5.57 24.28 29.77%
December 31, 2002 (.04) (.04) (5.11) 18.71 (21.31)%
December 31, 2001* -- -- (1.18) 23.82 (4.72)%
INTERNET FUND
DECEMBER 31, 2004 -- -- 2.33 17.01 15.87%
December 31, 2003 -- -- 5.75 14.68 64.39%
December 31, 2002 -- -- (6.83) 8.93 43.34)%
December 31, 2001* -- -- (9.24) 15.76 (36.96)%
LEISURE FUND
DECEMBER 31, 2004 (.31) (.31) 4.59 25.39 23.86%
December 31, 2003 -- -- 5.38 20.80 34.89%
December 31, 2002 -- -- (2.67) 15.42 (14.76)%
December 31, 2001* -- -- (6.91) 18.09 (27.64)%
RATIOS TO
AVERAGE NET ASSETS:
---------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
TOTAL INCOME TURNOVER PERIOD (000'S
EXPENSES (LOSS) RATE*** OMITTED)
- ------------------------------------------------------------------------------
ELECTRONICS FUND
DECEMBER 31, 2004 1.59% (1.34)% 1,325% $12,289
December 31, 2003 1.65% (1.51)% 1,264% 27,918
December 31, 2002 1.84% (1.63)% 2,685% 4,384
December 31, 2001* 2.36%** (2.13)%** 466% 1,423
ENERGY FUND
DECEMBER 31, 2004 1.58% 0.04% 542% 60,501
December 31, 2003 1.66% 0.04% 1,225% 31,832
December 31, 2002 1.72% (0.13)% 1,341% 5,834
December 31, 2001* 2.05%** (0.50)%** 478% 2,177
ENERGY SERVICES FUND
DECEMBER 31, 2004 1.58% (1.19)% 808% 29,316
December 31, 2003 1.65% (1.13)% 2,691% 7,754
December 31, 2002 1.71% (1.00)% 2,159% 4,427
December 31, 2001* 2.06%** (1.26)%** 3,182% 1,551
FINANCIAL SERVICES FUND
DECEMBER 31, 2004 1.59% 0.84% 762% 45,180
December 31, 2003 1.64% 0.61% 2,039% 15,581
December 31, 2002 1.85% 0.41% 1,727% 2,748
December 31, 2001* 2.19%** (0.11)%** 315% 2,607
HEALTH CARE FUND
DECEMBER 31, 2004 1.59% (0.67)% 629% 30,435
December 31, 2003 1.64% (0.88)% 1,222% 27,880
December 31, 2002 1.70% (0.45)% 1,617% 5,164
December 31, 2001* 2.23%** (1.33)%** 757% 951
INTERNET FUND
DECEMBER 31, 2004 1.58% (1.49)% 693% 36,922
December 31, 2003 1.65% (1.59)% 957% 25,101
December 31, 2002 1.75% (1.69)% 3,041% 3,703
December 31, 2001* 2.33%** (2.29)%** 2,341% 891
LEISURE FUND
DECEMBER 31, 2004 1.58% (0.74)% 663% 51,755
December 31, 2003 1.65% (0.41)% 1,353% 30,016
December 31, 2002 1.74% (0.98)% 1,976% 2,015
December 31, 2001* 1.98%** (1.49)%** 269% 804
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--ENERGY SERVICES FUND;
MAY 22, 2001--LEISURE FUND; MAY 24, 2001--INTERNET FUND; MAY 29,
2001--ENERGY FUND; JUNE 19, 2001--HEALTH CARE FUND; JULY 20,
2001--FINANCIAL SERVICES FUND; AUGUST 3, 2001--ELECTRONICS FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00170.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 181
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- ----------------------------------------------------------------------------------------------------
PRECIOUS METALS FUND
DECEMBER 31, 2004 $9.99 $ (.05) $(1.37) $(1.42) $ --
December 31, 2003 7.09 (.03) 2.93 2.90 --
December 31, 2002 4.87 (.02) 2.24 2.22 --
December 31, 2001 4.31 (.04) .60 .56 --
December 31, 2000 5.43 (.07) (1.05) (1.12) --
REAL ESTATE FUND
DECEMBER 31, 2004 30.25 1.02 7.79 8.81 (.14)
December 31, 2003 24.96 .94 6.62 7.56 (.85)
December 31, 2002 25.77 1.97 (2.26) (.29) (.48)
December 31, 2001* 25.00 1.44 (.42) 1.02 (.25)
RETAILING FUND
DECEMBER 31, 2004 25.99 (.22) 2.62 2.40 --
December 31, 2003 19.29 (.25) 7.05 6.80 --
December 31, 2002 25.65 (.27) (5.30) (5.57) --
December 31, 2001* 25.00 (.38) 1.03 .65 --
TECHNOLOGY FUND
DECEMBER 31, 2004 14.88 (.05) .03 (.02) --
December 31, 2003 9.92 (.18) 6.21 6.03 --
December 31, 2002 18.61 (.18) (7.15) (7.33) --
December 31, 2001* 25.00 (.39) (6.00) (6.39) --
TELECOMMUNICATIONS FUND
DECEMBER 31, 2004 18.22 (.02) 2.33 2.31 --
December 31, 2003 13.63 (.03) 4.62 4.59 --
December 31, 2002 22.56 (.05) (8.88) (8.93) --
December 31, 2001* 25.00 (.36) (2.08) (2.44) --
TRANSPORTATION FUND
DECEMBER 31, 2004 25.97 (.20) 6.09 5.89 --
December 31, 2003 21.55 (.15) 4.57 4.42 --
December 31, 2002 24.40 (.14) (2.71) (2.85) --
December 31, 2001* 25.00 (.20) (.40) (.60) --
UTILITIES FUND
DECEMBER 31, 2004 14.96 .33 2.24 2.57 (.19)
December 31, 2003 12.24 .31 2.77 3.08 (.36)
December 31, 2002 18.23 .33 (6.31) (5.98) (.01)
December 31, 2001* 25.00 .33 (7.10) (6.77) --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- -------------------------------------------------------------------------------------------------
PRECIOUS METALS FUND
DECEMBER 31, 2004 $ -- $ -- $(1.42) $ 8.57 (14.21)%
December 31, 2003 -- -- 2.90 9.99 40.90%
December 31, 2002 -- -- 2.22 7.09 45.59%
December 31, 2001 -- -- .56 4.87 12.99%
December 31, 2000 -- -- (1.12) 4.31 (20.63)%
REAL ESTATE FUND
DECEMBER 31, 2004 (.90) (1.04) 7.77 38.02 29.54%
December 31, 2003 (1.42) (2.27) 5.29 30.25 30.31%
December 31, 2002 (.04) (.52) (.81) 24.96 (1.12)%
December 31, 2001* -- (.25) .77 25.77 4.09%
RETAILING FUND
DECEMBER 31, 2004 (1.74) (1.74) .66 26.65 10.06%
December 31, 2003 (.10) (.10) 6.70 25.99 35.27%
December 31, 2002 (.79) (.79) (6.36) 19.29 (21.91)%
December 31, 2001* -- -- .65 25.65 2.60%
TECHNOLOGY FUND
DECEMBER 31, 2004 (1.36) (1.36) (1.38) 13.50 1.15%
December 31, 2003 (1.07) (1.07) 4.96 14.88 61.32%
December 31, 2002 (1.36) (1.36) (8.69) 9.92 (39.11)%
December 31, 2001* -- -- (6.39) 18.61 (25.56)%
TELECOMMUNICATIONS FUND
DECEMBER 31, 2004 -- -- 2.31 20.53 12.68%
December 31, 2003 (--)ss. (--)ss. 4.59 18.22 33.68%
December 31, 2002 -- -- (8.93) 13.63 (39.58)%
December 31, 2001* -- -- (2.44) 22.56 (9.76)%
TRANSPORTATION FUND
DECEMBER 31, 2004 (.41) (.41) 5.48 31.45 22.99%
December 31, 2003 -- -- 4.42 25.97 20.51%
December 31, 2002 -- -- (2.85) 21.55 (11.68)%
December 31, 2001* -- -- (.60) 24.40 (2.40)%
UTILITIES FUND
DECEMBER 31, 2004 -- (.19) 2.38 17.34 17.31%
December 31, 2003 -- (.36) 2.72 14.96 25.40%
December 31, 2002 -- (.01) (5.99) 12.24 (32.83)%
December 31, 2001* -- -- (6.77) 18.23 (27.08)%
RATIOS TO
AVERAGE NET ASSETS:
---------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
TOTAL INCOME TURNOVER PERIOD (000'S
EXPENSES (LOSS) RATE*** OMITTED)
- ----------------------------------------------------------------------------
PRECIOUS METALS FUND
DECEMBER 31, 2004 1.46% (0.54)% 519% $ 35,043
December 31, 2003 1.54% (0.38)% 658% 44,606
December 31, 2002 1.67% (0.29)% 1,001% 38,839
December 31, 2001 2.18% (0.79)% 957% 875
December 31, 2000 2.04% (1.45)% 965% 3,400
REAL ESTATE FUND
DECEMBER 31, 2004 1.59% 3.06% 1,139% 26,915
December 31, 2003 1.64% 3.26% 1,478% 12,183
December 31, 2002 1.68% 7.60% 1,927% 1,902
December 31, 2001* 2.31%** 5.75%** 17% 162
RETAILING FUND
DECEMBER 31, 2004 1.58% (0.83)% 609% 20,800
December 31, 2003 1.64% (1.04)% 785% 15,149
December 31, 2002 1.81% (1.23)% 1,668% 3,102
December 31, 2001* 2.24%** (1.65)%** 740% 1,994
TECHNOLOGY FUND
DECEMBER 31, 2004 1.58% (0.36)% 767% 19,919
December 31, 2003 1.64% (1.39)% 1,302% 20,641
December 31, 2002 1.71% (1.52)% 1,098% 5,021
December 31, 2001* 2.34%** (2.08)%** 490% 1,216
TELECOMMUNICATIONS FUND
DECEMBER 31, 2004 1.58% (0.08)% 809% 30,191
December 31, 2003 1.64% (0.19)% 974% 14,543
December 31, 2002 1.69% (0.39)% 855% 6,106
December 31, 2001* 2.25%** (1.61)%** 1,316% 407
TRANSPORTATION FUND
DECEMBER 31, 2004 1.57% (0.71)% 473% 47,333
December 31, 2003 1.64% (0.65)% 1,045% 8,032
December 31, 2002 1.69% (0.63)% 1,435% 6,301
December 31, 2001* 2.16%** (0.89)%** 609% 522
UTILITIES FUND
DECEMBER 31, 2004 1.57% 2.06% 904% 21,902
December 31, 2003 1.62% 2.29% 1,491% 13,430
December 31, 2002 1.67% 2.54% 829% 23,846
December 31, 2001* 2.08%** 1.59%** 1,040% 908
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--TECHNOLOGY FUND AND
UTILITIES FUND; JUNE 11, 2001--TRANSPORTATION FUND; JULY 23,
2001--RETAILING FUND; JULY 27, 2001--TELECOMMUNICATIONS FUND; OCTOBER 1,
2001--REAL ESTATE FUND.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00019538.
See Notes to Financial Statements.
182 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Variable Trust (the "Trust") is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 as a
non-diversified, open-ended investment company and is authorized to issue an
unlimited number of no par value shares. As of December 31, 2004, the Trust
consisted of forty-four operating Funds: twenty-two Benchmark funds, one
Strategic fund, one Money Market fund, eighteen Sector funds, and two CLS
AdvisorOne Funds. This report covers the Benchmark, Strategic, Money Market, and
Sector Funds (the "Funds"), while the CLS AdvisorOne Funds are contained in a
separate report. Rydex Global Advisors (the "Advisor") serves as investment
advisor to the Funds. Rydex Distributors, Inc. acts as principal underwriter for
the Trust.
The Trust was organized on June 11, 1998 as a Delaware business trust. Effective
November 2, 1998, the fund assets and liabilities of the Rydex Advisor Variable
Annuity Account (the "Separate Account"), a segregated investment account of
Conseco Variable Insurance Company (formerly Great American Reserve Insurance
Company), were transferred to the Trust in exchange for shares of the Funds of
the Trust (the "Separate Account Restructuring"). Shares of the Funds (full and
fractional) were issued to corresponding subaccounts of the Separate Account.
The value per share of each Fund was equivalent in value to the value of
outstanding accumulation units of the corresponding subaccount. The Trust offers
shares of the Funds to insurance companies for their variable annuity and
variable life insurance contracts.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Stock Exchange ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the "NYSE", usually 4:00 p.m., Eastern Time, on the valuation
date. Equity securities listed on the Nasdaq market system are valued at the
Nasdaq Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the
valuation date. Listed options held by the Trust are valued at their last bid
price. Over-the-counter options held by the Trust are valued using the average
bid price obtained from one or more security dealers. The value of futures
contracts purchased and sold by the Trust are accounted for using the unrealized
gain or loss on the contracts that is determined by marking the contracts to
their current realized settlement prices. Financial futures contracts are valued
at the last quoted sales price, usually as of 4:00 p.m., Eastern Time, on the
valuation date.
The value of domestic equity index swap agreements entered into by the Funds is
accounted for using the unrealized gain or loss on the agreements that is
determined by marking the agreements to the last quoted value of the index that
the swap pertains to at the close of the NYSE, usually 4:00 p.m., Eastern Time.
The swap's market value is then adjusted to include dividends accrued, financing
charges and/or interest associated with the swap agreements.
The value of foreign equity index swap agreements entered into by the Funds is
accounted for using the unrealized gain or loss on the agreements that is
determined by marking the agreements to the average price at which orders are
being filled (the "average fill price"), which includes the gain/loss on foreign
futures, at the close of the NYSE, usually 4:00 p.m., Eastern Time. The swap's
market value is then adjusted to include dividends accrued, financing charges
and/or interest associated with the swap agreements.
Short-term securities, if any, are valued at amortized cost, which approximates
market value. Securities and assets, including index options, for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under direction of the Board of Trustees or by the Advisor
using methods established or ratified by the Board of Trustees.
These methods include, but are not limited to: (i) general information as to how
these securities and assets trade; (ii) in connection with futures contracts and
options thereupon, and other derivative investments, information as to how (a)
these contracts and other derivative investments trade in the futures or other
derivative markets, respectively, and (b) the securities underlying these
contracts and other derivative investments trade in the cash market; and (iii)
other information and considerations, including current values in
related-markets.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. Dividend income is recorded on the
ex-dividend date, net of applicable taxes withheld by foreign countries.
Interest income, including amortization of premiums and accretion of discount,
is accrued on a daily basis.
C. Distributions to shareholders are recorded on the ex-dividend date.
Distributions from net investment income and net realized capital gains are
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America. These
differences are primarily due to differing treatments for items such as deferral
of wash sales and post-October losses and regulated futures contracts and
options. Net investment income and loss, net realized gains and losses, and net
assets were not affected by these differences.
D. When a Fund engages in a short sale, 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 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. Dividend and interest expenses and fees paid to brokers to
borrow securities in connection with short sales are considered part of the cost
of short sale transactions.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 183
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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, the Fund will realize a loss in the amount of the cost of the
option. When a Fund enters into a closing sale transaction, the 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, it 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 that the Fund purchases 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 the Trust'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 the Fund enters into a closing purchase
transaction, the 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 purchase or sell 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, the 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 a contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
G. The Trust may enter into equity index swap agreements, which are
over-the-counter contracts in which one party agrees to make periodic payments
based on the change in market value of a specified equity security, basket of
equity securities, or equity index in return for periodic payments based on a
fixed or variable interest rate or the change in market value of a different
equity security, basket of equity securities, or equity index. Swap agreements
are used to obtain exposure to an equity or market without owning or taking
physical custody of securities.
H. Investment securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the date of valuation.
Purchases and sales of investment securities and income and expense items
denominated in foreign currencies are translated into U.S. dollar amounts on the
respective dates of such transactions. The Trust does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain and loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies and currency gains or losses realized between the trade and
settlement dates on investment transactions. Net unrealized exchange gains and
losses arise from changes in the fair values of assets and liabilities other
than investments in securities at the fiscal period end, resulting from changes
in exchange rates.
I. The Trust may enter into forward currency contracts primarily to hedge
against foreign currency exchange rate risks on its non-U.S. dollar denominated
investment securities. When entering into a forward currency contract, the fund
agrees to receive or deliver a fixed quantity of foreign currency for an
agreed-upon price on an agreed future date. These contracts are valued daily and
the corresponding unrealized gain or loss on the contracts, as measured by the
difference between the forward foreign exchange rates at the dates of entry into
the contracts and the forward rates at the reporting date, is included in the
statement of assets and liabilities. Realized and unrealized gains and losses
are included in the statement of operations.
J. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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.
2. FINANCIAL INSTRUMENTS
As part of its investment strategy, the Trust may utilize a variety of
derivative instruments, including options, 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.
The risk associated with purchasing options is limited to the premium originally
paid. Options written by a fund involve, to varying degrees, risk of loss in
excess of the option value reflected in the Statements of Assets and
Liabilities. The risk in writing a covered call option is that a fund may forego
the opportunity for profit if the market price of the underlying security
increases and the option is exercised. The risk in writing a covered put option
is that a fund may incur a loss if the market price of the underlying security
decreases and the option is exercised. In addition, there is the risk that a
fund may not be able to enter into a closing transaction because of an illiquid
secondary market or, for over-the-counter options, because of the counterparty's
inability to perform. The Trust has established strict counterparty credit
guidelines and enters into transactions only with financial institutions of
investment grade or better.
184 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
There are several risks in connection with the use of futures contracts. Futures
contracts involve, to varying degrees, risk of loss in excess of amounts
reflected in the financial statements. 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.
The use of equity swaps involves risks that are different from those associated
with ordinary portfolio securities transactions. Swap agreements may be
considered to be illiquid. Although a fund will not enter into any swap
agreement unless the Advisor believes that the other party to the transaction is
creditworthy, a fund does 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. The Trust has established strict counterparty credit
guidelines and enters into transactions only with financial institutions of
investment grade or better.
In conjunction with the use of options, futures, options on futures and swap
agreements, as well as short sales of securities, 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 segregated at the custodian bank, discount notes,
or the repurchase agreements allocated to each Fund.
Short sales are transactions in which the Fund sells a security it does not own.
If the security the Fund sold short goes down in price between the time the Fund
sells the security and closes its short position, the Fund will realize a gain
on the transaction. Conversely, if the security goes up in price during the
period, the Fund will realize a loss on the transaction. The risk of such price
increases is the principal risk of engaging in short sales.
The risks inherent in the use of options, futures contracts, options on futures
contracts, and swap agreements include 1) adverse changes in the value of such
instruments; 2) imperfect correlation between the price of the instruments and
movements in the price of the underlying securities, indices, or futures
contracts; 3) the possible absence of a liquid secondary market for any
particular instrument at any time; and 4) the potential of counterparty default.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays the Advisor,
an affiliated entity, investment advisory fees calculated at an annualized rate
of 0.50% of the average daily net assets of the U.S. Government Bond Fund and
the U.S. Government Money Market Fund; 0.75% of the average daily net assets of
the Nova Fund, the OTC Fund, the Small-Cap Value Fund, the Mid-Cap Value Fund,
the Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund,
the Large-Cap Growth Fund, and the Precious Metals Fund; 0.85% of the average
daily net assets of the Banking Fund, the Basic Materials Fund, the
Biotechnology Fund, the Consumer Products Fund, the Electronics Fund, the Energy
Fund, the Energy Services Fund, the Financial Services Fund, the Health Care
Fund, the Internet Fund, the Leisure Fund, the Real Estate Fund, the Retailing
Fund, the Technology Fund, the Telecommunications Fund, the Transportation Fund,
and the Utilities Fund; and 0.90% of the average daily net assets of the Ursa
Fund, the Arktos Fund, the Titan 500 Fund, the Velocity 100 Fund, the Medius
Fund, the Inverse Mid-Cap Fund, the Mekros Fund, the Inverse Small-Cap Fund, the
Juno Fund, the Large-Cap Europe Fund, the Large-Cap Japan Fund, the Long Dynamic
Dow 30 Fund, the Inverse Dynamic Dow 30 Fund, and the Sector Rotation Fund.
Certain officers and trustees of the Trust are also officers of the Advisor.
Rydex Fund Services, Inc. (the "Servicer"), an affiliated entity, provides
transfer agent and administrative services to the Trust calculated at an annual
percentage rate of 0.20% of the average daily net assets of the U.S. Government
Bond Fund and the U.S. Government Money Market Fund; and 0.25% of the average
daily net assets of the Nova Fund, the Ursa Fund, the OTC Fund, the Arktos Fund,
the Titan 500 Fund, the Velocity 100 Fund, the Medius Fund, the Inverse Mid-Cap
Fund, the Mekros Fund, the Inverse Small-Cap Fund, the Juno Fund, the Large-Cap
Europe Fund, the Large-Cap Japan Fund, the Long Dynamic Dow 30 Fund, the Inverse
Dynamic Dow 30 Fund, the Small-Cap Value Fund, the Mid-Cap Value Fund, the
Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund, the
Large-Cap Growth Fund, the Sector Rotation Fund, the Banking Fund, the Basic
Materials Fund, the Biotechnology Fund, the Consumer Products Fund, the
Electronics Fund, the Energy Fund, the Energy Services Fund, the Financial
Services, the Health Care Fund, the Internet Fund, the Leisure Fund, the
Precious Metals Fund, the Real Estate Fund, the Retailing Fund, the Technology
Fund, the Telecommunications Fund, the Transportation Fund, and the Utilities
Fund.
The Servicer also 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 of the funds. Certain
officers and trustees of the trust are also officers of the Servicer.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 185
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The Servicer also provides other necessary services to the Trust, such as
accounting and auditing services, legal services, printing and mailing, etc., on
a pass-through basis. Such expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets.
The Trust has adopted an Investor Services Plan for which Rydex Distributors,
Inc. (the "Distributor"), an affiliated entity, and other firms that provide
shareholder services ("Service Providers") may receive compensation. The Trust
will pay fees to the Distributor at an annual rate not to exceed 0.25% of
average daily net assets. The Distributor, in turn, will compensate Service
Providers for providing such services, while retaining a portion of such
payments to compensate it for shareholder services it performs. For the period
ending December 31, 2004, Rydex Distributors, Inc. voluntarily waived service
fees in the amount of $286,105 in the U.S. Government Money Market Fund.
4. FEDERAL INCOME TAX INFORMATION
The Funds intends to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. These differences are primarily due to differing
treatments for futures and options transactions, foreign currency transactions,
losses deferred due to wash sales, losses deferred due to post-October losses,
and excise tax regulations.
Permanent book and tax basis differences, if any, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
net operating losses not utilized during the current year, distribution
reclassification, and return of capital differences in the treatment of certain
notional principal contracts. These reclassifications have no effect on net
assets or net asset values per share. Any taxable gain remaining at fiscal year
end is distributed in the following year.
The Funds' tax basis capital gains and losses are determined only at the end of
each fiscal year. Tax basis capital losses in excess of capital gains are
carried forward to offset future net capital gains. For the year ended December
31, 2004, the following Funds offset net realized capital gains with capital
losses from previous years:
FUND AMOUNT
- ------ ----------
Nova Fund $8,357,670
Large-Cap Japan Fund 45,228
Sector Rotation Fund 422,580
Energy Services Fund 743,247
Financial Services Fund 1,188,026
Internet Fund 128,371
Telecommunications Fund 71,603
Utilities Fund 1,108,242
186 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributions paid during 2004 was as follows:
ORDINARY LONG-TERM RETURN TOTAL
FUND INCOME CAPITAL GAIN OF CAPITAL DISTRIBUTIONS
- --------------------------------- ------------ ------------- ----------- ---------------
Nova Fund $ 40,441 $ -- $ -- $ 40,441
Ursa Fund -- -- -- --
OTC Fund -- -- -- --
Arktos Fund -- -- -- --
Titan 500 Fund 2,253,612 989,294 -- 3,242,906
Velocity 100 Fund 771,099 579,649 411,759 1,762,507
Medius Fund 1,589,650 409,464 -- 1,999,114
Inverse Mid-Cap Fund -- -- -- --
Mekros Fund 1,944,101 789,421 -- 2,733,522
Inverse Small-Cap Fund -- -- -- --
U.S. Government Bond Fund 3,573,944 503,055 -- 4,076,999
Juno Fund 133,449 360,161 -- 493,610
Large-Cap Europe Fund 6,201,653 103,778 -- 6,305,431
Large-Cap Japan Fund -- -- -- --
Long Dynamic Dow 30 Fund 473,263 -- -- 473,263
Inverse Dynamic Dow 30 Fund -- 75,845 -- 75,845
Small-Cap Value Fund 1,342,874 835 -- 1,343,709
Mid-Cap Value Fund 1,017,073 14,140 -- 1,031,213
Large-Cap Value Fund 165,471 758 -- 166,229
Small-Cap Growth Fund 388,437 -- -- 388,437
Mid-Cap Growth Fund -- -- -- --
Large-Cap Growth Fund 232,823 -- -- 232,823
Sector Rotation Fund -- -- -- --
U.S. Government Money Market Fund 599,121 -- -- 599,121
Banking Fund 762,000 1,558 -- 763,558
Basic Materials Fund 912,124 -- -- 912,124
Biotechnology Fund -- -- -- --
Consumer Products Fund 375,373 -- -- 375,373
Electronics Fund -- -- -- --
Energy Fund 22,679 -- -- 22,679
Energy Services Fund -- -- -- --
Financial Services Fund 56,477 -- -- 56,477
Health Care Fund 272,867 7,789 -- 280,656
Internet Fund -- -- -- --
Leisure Fund 176,049 -- -- 176,049
Precious Metals Fund -- -- -- --
Real Estate Fund 469,611 29,677 -- 499,288
Retailing Fund 859,770 5,766 -- 865,536
Technology Fund 1,130,753 -- -- 1,130,753
Telecommunications Fund -- -- -- --
Transportation Fund 315,578 -- -- 315,578
Utilities Fund 265,543 -- -- 265,543
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 187
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributions paid during 2003 was as follows:
ORDINARY LONG-TERM TOTAL
FUND INCOME CAPITAL GAIN DISTRIBUTIONS
- --------------------------------- ------------ ------------ -------------
Nova Fund $ -- $ -- $ --
Ursa Fund -- -- --
OTC Fund -- -- --
Arktos Fund 463,435 -- 463,435
Titan 500 Fund 1,364,324 2,507,680 3,872,004
Velocity 100 Fund 3,604,922 -- 3,604,922
Medius Fund 741,236 894,322 1,635,558
Mekros Fund 11,106,539 2,713,642 13,820,181
U.S. Government Bond Fund 2,371,394 433,636 2,805,030
Juno Fund -- -- --
Large-Cap Europe Fund 6,433,360 -- 6,433,360
Large-Cap Japan Fund -- -- --
Sector Rotation Fund -- -- --
U.S. Government Money Market Fund 31,663 -- 31,663
Banking Fund 48,501 -- 48,501
Basic Materials Fund 8,471 -- 8,471
Biotechnology Fund -- -- --
Consumer Products Fund 85,897 949 86,846
Electronics Fund -- -- --
Energy Fund -- -- --
Energy Services Fund -- -- --
Financial Services Fund 17,051 -- 17,051
Health Care Fund -- -- --
Internet Fund -- -- --
Leisure Fund -- -- --
Precious Metals Fund -- -- --
Real Estate Fund 797,747 58,120 855,867
Retailing Fund 63,856 636 64,492
Technology Fund 1,373,910 -- 1,373,910
Telecommunications Fund 77 -- 77
Transportation Fund -- -- --
Utilities Fund 176,841 -- 176,841
188 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributable earnings/(accumulated losses) at December 31,
2004 was as follows:
UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
ORDINARY REALIZED APPRECIATION/ CAPITAL LOSS
FUND INCOME GAIN (DEPRECIATION) CARRYFORWARD
- --------------------------------- ------------- ------------- -------------- -------------
Nova Fund $ 362,006 $ -- $ 4,241,004 $ 106,230,093(4)
Ursa Fund -- -- (174,504) 25,550,830(4)
OTC Fund -- -- (240,335) 369,634,679(4)
Arktos Fund -- -- 23,245 8,348,709(4)
Titan 500 Fund 1,127,573 1,043,681 (95,300) --
Velocity 100 Fund -- -- 1,716,746 --
Medius Fund -- 113,493 2,336,801 --
Inverse Mid-Cap Fund -- -- (15,129) 392,757(1)
Mekros Fund 1,372,293 -- 4,749,787 2,170,380(1)
Inverse Small-Cap Fund -- -- (89,390) 2,561,018(1)
U.S. Government Bond Fund 2,400 702 (1,915,564) 2,822,543(1)
Juno Fund -- -- (1,030,808) 5,005,075(1)
Large-Cap Europe Fund 210,675 -- 969,018* --
Large-Cap Japan Fund -- -- 568,497* --
Long Dynamic Dow 30 Fund 361,989 227,465 160,669 --
Inverse Dynamic Dow 30 Fund -- -- (261,879)* --
Small-Cap Value Fund 1,196,199 1,809 2,431,827 --
Mid-Cap Value Fund 135,888 270 383,562 --
Large-Cap Value Fund 243,909 -- 743,036 --
Small-Cap Growth Fund 875,160 2,678 1,430,208 --
Mid-Cap Growth Fund -- -- 541,947 512,691(1)
Large-Cap Growth Fund 29,081 15 452,111 --
Sector Rotation Fund -- -- 3,811,115 797,106(3)
U.S. Government Money Market Fund 7,493 -- -- 1,546(4)
Banking Fund 2,276,609 73,581 695,152 --
Basic Materials Fund 4,000,873 66,436 4,452,138 --
Biotechnology Fund -- -- (1,645,518) 2,489,465(4)
Consumer Products Fund 357,566 336,698 119,380 --
Electronics Fund -- -- (1,890,696) 873,383(4)
Energy Fund 4,642,281 151,918 8,007,013 --
Energy Services Fund -- -- 2,025,758 11,891(2)
Financial Services Fund 1,758,219 304,631 1,505,301 --
Health Care Fund -- -- 91,512 1,305,802(1)
Internet Fund 479,497 106,533 3,105,101 --
Leisure Fund 1,799,873 302,370 4,218,059 --
Precious Metals Fund -- -- (1,586,607) 2,397,512(4)
Real Estate Fund 486,247 -- 3,350,924 627,076(1)
Retailing Fund 35,989 337,404 1,823,741 --
Technology Fund -- -- 305,352 1,006,137(1)
Telecommunications Fund 1,299,417 260,890 1,883,126 --
Transportation Fund 645,383 -- 6,125,610 --
Utilities Fund 313,329 -- 1,429,007 429,454(2)
(1) EXPIRES IN 2012
(2) EXPIRES IN 2011
(3) EXPIRES IN 2010
(4) NOVA FUND: $49,297,393 EXPIRES IN 2008, $40,390,472 EXPIRES IN 2009 AND
$16,542,228 EXPIRES IN 2010.
URSA FUND: $2,209,540 EXPIRES IN 2007, $12,563,901 EXPIRES IN 2011 AND
$10,777,389 EXPIRES IN 2012.
OTC FUND: $79,883,109 EXPIRES IN 2008,$180,736,125 EXPIRES IN 2009,
$98,591,246 EXPIRES IN 2010, $10,118,266 EXPIRES IN 2011 AND $305,933
EXPIRES IN 2012.
ARKTOS FUND: $1,648,984 EXPIRES IN 2009, $1,790,535 EXPIRES IN 2011 AND
$4,909,190 EXPIRES IN 2012.
U.S. GOVERNMENT MONEY MARKET FUND: $1,127 EXPIRES IN 2008, $386 EXPIRES
IN 2010, AND $33 EXPIRES IN 2011.
BIOTECHNOLOGY FUND: $608,485 EXPIRES IN 2010 AND $1,880,980 EXPIRES IN
2012.
ELECTRONICS FUND: $324,070 EXPIRES IN 2010 AND $549,313 EXPIRES IN
2012.
PRECIOUS METALS FUND: $87,863 EXPIRES IN 2009 AND $2,309,649 EXPIRES
IN 2012.
(*) INCLUDES POST-OCTOBER DEFERRED LOSS. SEE DISCLOSURE ON FOLLOWING PAGE.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 189
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At December 31, 2004, the cost of securities for federal income tax purposes,
the aggregate gross unrealized gain for all securities for which there was an
excess of value over tax cost and the aggregate gross unrealized loss for all
securities for which there was an excess of tax cost over value were as follows:
TAX TAX NET
TAX UNREALIZED UNREALIZED UNREALIZED
FUND COST GAIN LOSS GAIN/(LOSS)
- --------------------------------- ------------- ------------ ------------- ---------------
Nova Fund $ 135,795,852 $ 4,577,337 $ (336,333) $ 4,241,004
Ursa Fund 17,643,751 -- (174,504) (174,504)
OTC Fund 227,644,670 -- (240,335) (240,335)
Arktos Fund 24,126,687 23,245 -- 23,245
Titan 500 Fund 31,020,006 -- (95,300) (95,300)
Velocity 100 Fund 62,311,511 1,796,578 (79,832) 1,716,746
Medius Fund 37,903,538 2,422,686 (85,885) 2,336,801
Inverse Mid-Cap Fund 1,032,825 -- (15,129) (15,129)
Mekros Fund 111,675,451 5,103,205 (353,418) 4,749,787
Inverse Small-Cap Fund 4,631,698 -- (89,390) (89,390)
U.S. Government Bond Fund 49,630,259 -- (1,915,564) (1,915,564)
Juno Fund 76,290,059 562,261 (1,593,069) (1,030,808)
Large-Cap Europe Fund 52,525,407 989,008 -- 989,008
Large-Cap Japan Fund 8,997,281 827,597 -- 827,597
Long Dynamic Dow 30 Fund 10,339,724 165,819 (5,150) 160,669
Inverse Dynamic Dow 30 Fund 2,936,840 -- (13,425) (13,425)
Small-Cap Value Fund 46,378,775 2,498,378 (66,551) 2,431,827
Mid-Cap Value Fund 20,539,699 387,772 (4,210) 383,562
Large-Cap Value Fund 11,327,440 745,341 (2,305) 743,036
Small-Cap Growth Fund 30,435,394 1,457,930 (27,722) 1,430,208
Mid-Cap Growth Fund 22,173,760 597,867 (55,920) 541,947
Large-Cap Growth Fund 21,007,307 494,506 (42,395) 452,111
Sector Rotation Fund 30,095,778 3,915,066 (103,951) 3,811,115
U.S.Government Money
Market Fund 180,288,275 -- -- --
Banking Fund 22,518,957 751,277 (56,125) 695,152
Basic Materials Fund 48,809,125 4,541,713 (89,575) 4,452,138
Biotechnology Fund 8,879,465 -- (1,645,518) (1,645,518)
Consumer Products Fund 26,691,701 121,550 (2,170) 119,380
Electronics Fund 15,006,181 -- (1,890,696) (1,890,696)
Energy Fund 63,450,063 8,076,697 (69,684) 8,007,013
Energy Services Fund 32,566,699 2,025,758 -- 2,025,758
Financial Services Fund 46,828,748 1,693,754 (188,453) 1,505,301
Health Care Fund 34,074,512 201,361 (109,849) 91,512
Internet Fund 42,987,637 3,115,290 (10,189) 3,105,101
Leisure Fund 56,264,086 4,218,059 -- 4,218,059
Precious Metals Fund 47,147,555 -- (1,586,607) (1,586,607)
Real Estate Fund 25,915,800 3,350,924 -- 3,350,924
Retailing Fund 22,886,818 1,867,584 (43,843) 1,823,741
Technology Fund 21,839,983 391,416 (86,064) 305,352
Telecommunications Fund 33,509,163 1,918,743 (35,617) 1,883,126
Transportation Fund 51,762,614 6,125,610 -- 6,125,610
Utilities Fund 25,528,162 1,454,256 (25,249) 1,429,007
POST-OCTOBER LOSSES DEFERRED
Pursuant to federal income tax regulations applicable to investment companies,
the funds have elected to treat net capital losses realized between November 1
and December 31 of each year as occurring on the first day of the following tax
year. For the year ended December 31, 2004, $19,990, $259,100, and $248,454 of
realized capital losses reflected in the accompanying financial statements will
not be recognized for federal income tax purposes until 2005 for Large-Cap
Europe Fund, Large-Cap Japan Fund, and Inverse Dynamic Dow 30 Fund,
respectively.
5. REPURCHASE AGREEMENTS
The Trust 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. The collateral
is in the possession of the Trusts' custodian and is evaluated daily to ensure
that its market value exceeds by, at a minimum, 102% the delivery value of the
repurchase agreements at maturity.
190 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The repurchase agreements that were executed by the joint account and
outstanding as of December 31, 2004 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- --------------------------- ------------------ ------------ ------------- --------------
Lehman Brothers, Inc. 1.55% due 01/03/05 $ 96,147,012 $ 96,147,012 $ 96,159,431
Morgan Stanley, Inc. 1.48% due 01/03/05 73,000,000 73,000,000 73,009,003
UBS Financial Services, Inc. 1.48% due 01/03/05 70,000,000 70,000,000 70,008,633
Citigroup, Inc. 1.25% due 01/03/05 70,000,000 70,000,000 70,007,292
============= ==============
$ 309,147,012 $ 309,184,359
============= ==============
As of December 31, 2004, the collateral for the repurchase agreements in the
joint account was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- --------------------------- ----------------- ------------ -------------
U. S. Treasury Bonds 5.500% - 11.250% $ 69,656,000 $ 91,461,993
U. S. Treasury Notes 2.000% - 3.375% 221,612,563 223,969,137
------------ -------------
$ 315,431,130
=============
In the event of counterparty default, the Trust has the right to sell the
collateral to offset losses incurred. There is potential loss to the Trust in
the event the Trust is delayed or prevented from exercising its rights to
dispose of the collateral securities, including the risk of a possible decline
in the value of the underlying securities during the period while the Trust
seeks to assert its rights. The Trust's investment advisor, acting under the
supervision of the Board of Trustees, reviews the value of the collateral and
the credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
6. SECURITIES TRANSACTIONS
During the year ended December 31, 2004, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
TITAN 500 VELOCITY INVERSE
NOVA FUND URSA FUND OTC FUND ARKTOS FUND FUND 100 FUND MEDIUS FUND MID-CAP FUND
------------ -------------- ------------- ------------ ------------ ------------ ------------- ---------------
Purchases $514,514,630 $ -- $ 619,009,684 $ -- $222,320,953 $162,133,737 $185,300,925 $ --
Sales $494,236,865 $ -- $ 572,379,779 $ -- $227,164,020 $143,597,239 $171,277,600 $ --
INVERSE U.S. INVERSE
MEKROS SMALL-CAP GOVERNMENT JUNO LARGE-CAP LARGE-CAP LONG DYNAMIC DYNAMIC
FUND FUND BOND FUND FUND EUROPE FUND JAPAN FUND DOW 30 FUND DOW 30 FUND
------------ -------------- ------------- ------------ ------------ ------------ ------------- ---------------
Purchases $556,364,817 $ -- $ 494,025,273 $ -- $ -- $ -- $ 34,353,838 $ --
Sales $564,819,839 $ -- $ 513,157,762 $ -- $ -- $ -- $ 27,849,070 $ --
U.S. GOVERNMENT
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP MID-CAP LARGE-CAP SECTOR MONEY MARKET
VALUE FUND VALUE FUND VALUE FUND GROWTH FUND GROWTH FUND GROWTH FUND ROTATION FUND FUND
------------ -------------- ------------- ------------ ------------ ------------ ------------- ---------------
Purchases $169,797,585 $ 142,129,946 $ 107,120,598 $206,078,579 $109,066,676 $106,715,540 $ 79,827,829 $ --
Sales $127,754,192 $ 124,269,870 $ 97,164,718 $178,776,719 $ 88,505,849 $ 87,400,723 $ 75,369,887 $ --
BASIC CONSUMER
BANKING MATERIALS BIOTECHNOLOGY PRODUCTS ELECTRONICS ENERGY FINANCIAL
FUND FUND FUND FUND FUND ENERGY FUND SERVICES FUND SERVICES FUND
------------ -------------- ------------- ------------ ------------ ------------ ------------- ---------------
Purchases $177,608,937 $ 240,512,239 $ 189,632,409 $206,384,753 $117,354,642 $262,521,341 $185,178,681 $ 228,390,549
Sales $174,792,374 $ 244,175,508 $ 192,423,752 $191,476,859 $131,255,953 $244,976,461 $167,306,714 $ 202,792,444
HEALTH INTERNET LEISURE PRECIOUS REAL ESTATE RETAILING TECHNOLOGY TELECOMMUNI-
CARE FUND FUND FUND METALS FUND FUND FUND FUND CATIONS FUND
------------ -------------- ------------- ------------ ------------ ------------ ------------- ---------------
Purchases $193,719,199 $ 188,801,563 $ 176,913,181 $191,107,314 $236,441,658 $113,730,309 $132,198,633 $ 171,856,483
Sales $189,934,247 $ 178,524,209 $ 160,766,408 $188,183,770 $223,460,209 $108,557,625 $131,597,006 $ 159,018,836
TRANSPORTA-
TION FUND UTILITIES FUND
------------ --------------
Purchases $134,828,132 $ 147,384,817
Sales $102,174,607 $ 141,648,918
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 191
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Trust is authorized to distibute an unlimited number of no par value shares.
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT
- ---------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------
Nova Fund 90,616,423 70,190,590 5,509 --
Ursa Fund 82,042,906 78,165,149 -- --
OTC Fund 63,676,586 59,664,726 -- --
Arktos Fund 44,660,602 21,595,420 -- 17,541
Titan 500 Fund 15,431,805 10,698,005 358,177 179,342
Velocity 100 Fund 24,569,991 20,238,606 98,519 165,896
Medius Fund 12,074,008 10,727,657 90,131 66,110
Inverse Mid-Cap Fund* 513,351 -- -- --
Mekros Fund 31,242,771 20,715,509 99,077 464,544
Inverse Small-Cap Fund* 3,226,890 -- -- --
U.S. Government Bond Fund 45,444,606 31,159,927 348,904 236,360
Juno Fund** 14,299,702 7,680,164 21,754 --
Large-Cap Europe Fund 10,082,773 6,843,913 277,971 281,301
Large-Cap Japan Fund 10,263,349 10,951,913 -- --
Long Dynamic Dow 30 Fund* 4,274,233 -- 18,209 --
Inverse Dynamic Dow 30 Fund* 563,094 -- 1,763 --
Small-Cap Value Fund* 6,233,134 -- 46,592 --
Mid-Cap Value Fund* 5,683,108 -- 38,010 --
Large-Cap Value Fund* 4,401,160 -- 5,999 --
Small-Cap Growth Fund* 7,927,790 -- 13,586 --
Mid-Cap Growth Fund* 4,476,551 -- -- --
Large-Cap Growth Fund* 4,453,786 -- 9,024 --
Sector Rotation Fund 4,500,722 3,842,582 -- --
U.S. Government Money
Market Fund 1,972,975,071 2,702,076,887 599,199 31,663
Banking Fund 3,683,273 3,574,744 22,451 1,683
Basic Materials Fund 6,449,206 5,809,129 31,848 360
Biotechnology Fund 10,521,809 8,662,456 -- --
Consumer Products Fund 5,283,129 2,543,918 12,332 3,223
Electronics Fund 9,292,973 12,048,385 -- --
Energy Fund 8,102,044 5,733,444 851 --
Energy Services Fund 10,663,226 8,824,839 -- --
Financial Services 4,944,363 6,631,185 2,047 725
Health Care Fund 7,516,391 7,584,082 11,670 --
Internet Fund 11,387,357 8,715,820 -- --
Leisure Fund 6,284,802 7,051,556 8,285 --
Precious Metals Fund 25,690,194 30,086,397 -- --
Real Estate Fund 7,575,845 4,137,376 14,517 28,299
Retailing Fund 3,884,919 3,760,584 36,444 2,582
Technology Fund 8,534,083 13,347,902 95,745 96,482
Telecommunications Fund 8,754,908 4,230,010 -- 4
Transportation Fund 4,554,584 1,924,295 11,895 --
Utilities Fund 8,779,497 13,587,884 16,775 12,768
NET SHARES PURCHASED
SHARES REDEEMED (REDEEMED)
- -------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------
Nova Fund (86,199,014) (65,407,027) 4,422,918 4,783,563
Ursa Fund (81,455,066) (79,859,968) 587,840 (1,694,819)
OTC Fund (60,083,217) (58,522,050) 3,593,369 1,142,676
Arktos Fund (44,969,096) (20,798,627) (308,494) 814,334
Titan 500 Fund (15,733,937) (9,600,028) 56,045 1,277,319
Velocity 100 Fund (24,044,387) (18,815,756) 624,123 1,588,746
Medius Fund (11,624,803) (10,421,602) 539,336 372,165
Inverse Mid-Cap Fund* (483,399) -- 29,952 --
Mekros Fund (32,129,037) (17,689,286) (787,189) 3,490,767
Inverse Small-Cap Fund* (3,125,460) -- 101,430 --
U.S. Government Bond Fund (47,295,141) (27,718,749) (1,501,631) 3,677,538
Juno Fund** (13,350,258) (6,779,407) 971,198 900,757
Large-Cap Europe Fund (9,610,609) (5,602,282) 750,135 1,522,932
Large-Cap Japan Fund (10,209,517) (10,689,717) 53,832 262,196
Long Dynamic Dow 30 Fund* (3,889,949) -- 402,493 --
Inverse Dynamic Dow 30 Fund* (491,185) -- 73,672 --
Small-Cap Value Fund* (4,640,310) -- 1,639,416 --
Mid-Cap Value Fund* (5,001,795) -- 719,323 --
Large-Cap Value Fund* (4,004,572) -- 402,587 --
Small-Cap Growth Fund* (6,881,201) -- 1,060,175 --
Mid-Cap Growth Fund* (3,713,416) -- 763,135 --
Large-Cap Growth Fund* (3,685,764) -- 777,046 --
Sector Rotation Fund (4,057,096) (2,660,088) 443,626 1,182,494
U.S. Government Money
Market Fund (2,038,389,174) (2,728,568,211) (64,814,904) (26,459,661)
Banking Fund (3,628,353) (3,250,459) 77,371 325,968
Basic Materials Fund (6,676,726) (4,242,939) (195,672) 1,566,550
Biotechnology Fund (10,837,968) (8,270,998) (316,159) 391,458
Consumer Products Fund (4,854,051) (2,499,621) 441,410 47,520
Electronics Fund (10,013,806) (10,835,485) (720,833) 1,212,900
Energy Fund (7,482,312) (4,635,225) 620,583 1,098,219
Energy Services Fund (9,754,684) (8,635,159) 908,542 189,680
Financial Services (4,058,517) (6,168,839) 887,893 463,071
Health Care Fund (7,480,537) (6,712,061) 47,524 872,021
Internet Fund (10,926,035) (7,420,644) 461,322 1,295,176
Leisure Fund (5,697,860) (5,739,289) 595,227 1,312,267
Precious Metals Fund (26,062,658) (31,099,542) (372,464) (1,013,145)
Real Estate Fund (7,285,153) (3,839,111) 305,209 326,564
Retailing Fund (3,723,686) (3,341,193) 197,677 421,973
Technology Fund (8,542,253) (12,562,742) 87,575 881,642
Telecommunications Fund (8,082,480) (3,879,691) 672,428 350,323
Transportation Fund (3,370,608) (1,907,370) 1,195,871 16,925
Utilities Fund (8,430,853) (14,650,041) 365,419 (1,049,389)
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 1, 2003.
192 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
8. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the
agent, and other approved registered broker dealers act as the borrowers. The
Trust receives cash collateral, valued at 102% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At December 31, 2004, the pooled cash
collateral investments consisted of repurchase agreements (46.40%), commercial
paper (32.90%), fixed income notes (20.69%), and money market mutual funds
(0.01%). Collateral is maintained over the life of the loan in an amount not
less than the value of loaned securities, as determined at the close of fund
business each day; any additional collateral required due to changes in security
values is delivered to the fund the next business day. Although the collateral
mitigates risk, the Trust could experience a delay in recovering its securities
and a possible loss of income or value if the borrower fails to return the
securities. The Trust has the right under the securities lending agreement to
recover the securities from the borrower on demand.
At December 31, 2004 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ----------------------- -------------- -------------
Nova Fund $ 13,804,518 $ 13,321,933
OTC Fund 37,093,297 35,844,856
Titan 500 Fund 600,365 580,209
Velocity 100 Fund 6,533,954 6,287,531
Medius Fund 4,234,054 4,088,362
Mekros Fund 5,310,738 5,054,909
Long Dynamic Dow 30 Fund 621,340 603,718
Small-Cap Value Fund 1,563,541 1,502,895
Mid-Cap Value Fund 1,424,576 1,370,793
Large-Cap Value Fund 931,373 900,105
Small-Cap Growth Fund 1,572,253 1,518,636
Mid-Cap Growth Fund 2,031,814 1,959,509
Large-Cap Growth Fund 1,446,609 1,395,188
Sector Rotation Fund 6,101,785 5,890,554
Banking Fund 1,309,542 1,274,177
Basic Materials Fund 6,982,118 6,788,054
Biotechnology Fund 612,142 591,785
Consumer Products Fund 2,421,449 2,351,130
Electronics Fund 824,303 793,540
Energy Fund 11,003,535 10,649,843
Energy Services Fund 5,212,067 5,044,998
Financial Services Fund 2,969,265 2,878,565
Health Care Fund 3,854,239 3,723,428
Internet Fund 9,104,697 8,732,465
Leisure Fund 8,723,961 8,388,607
Precious Metals Fund 10,550,450 9,898,897
Real Estate Fund 2,438,689 2,353,229
Retailing Fund 3,955,244 3,808,993
Technology Fund 2,213,108 2,110,607
Telecommunications Fund 5,312,502 5,024,242
Transportation Fund 10,519,806 10,089,804
Utilities Fund 5,145,991 4,921,423
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 193
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
of Rydex Variable Trust:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Nova Fund, Ursa Fund, OTC Fund,
Arktos Fund, Titan 500 Fund, Velocity 100 Fund, Medius Fund, Inverse Mid-Cap
Fund, Mekros Fund, Inverse Small-Cap Fund, U.S. Government Bond Fund, Juno Fund,
Large-Cap Europe Fund, Large-Cap Japan Fund, Long Dynamic Dow 30 Fund, Inverse
Dynamic Dow 30 Fund, Small-Cap Value Fund, Mid-Cap Value Fund, Large-Cap Value
Fund, Small-Cap Growth Fund, Mid-Cap Growth Fund, Large-Cap Growth Fund, Sector
Rotation Fund, U.S. Government Money Market Fund, Banking Fund, Basic Materials
Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund,
Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund,
Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology
Fund, Telecommunications Fund, Transportation Fund, and Utilities Fund
(forty-two of the funds of the Rydex Variable Trust, hereafter referred to as
the "Funds") at December 31, 2004, the results of each of their operations, the
changes in each of their net assets and the financial highlights for the periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements 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 are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 2004 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 22, 2005
194 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
OTHER INFORMATION
- --------------------------------------------------------------------------------
UNAUDITED TAX INFORMATION
This information is being provided as required by the Internal Revenue Code.
Amounts shown may differ from those elsewhere in the report because of
difference in tax and financial reporting practice.
Of the ordinary income distributions paid during the year for Velocity 100 Fund,
Long Dynamic Dow 30 Fund, Small-Cap Value Fund, Mid-Cap Value Fund, Large-Cap
Value Fund, Large-Cap Growth Fund, and Real Estate Fund, 0%, 5.22%, 100%, 100%,
100%, 64.10%, and 75.85%, respectively, qualifies for the dividends received
deductions for corporations.
The Funds distributions to shareholders included:
U.S.
GOVERNMENT
TITAN 500 VELOCITY 100 MEDIUS MEKROS BOND JUNO
FUND FUND FUND FUND FUND FUND
---------- ------------ ----------- ----------- ------------ --------------
From short-term capital gains: $2,253,612 $ -- $ 1,589,650 $ 1,944,101 $ 1,719,056 $ 133,449
From long-term capital gains,
subject to the 20% rate gains category: $ 989,294 $ 579,649 $ 409,464 $ 789,421 $ 503,055 $ 360,161
LONG INVERSE
LARGE-CAP DYNAMIC DYNAMIC SMALL-CAP MID-CAP LARGE-CAP
EUROPE DOW 30 DOW 30 VALUE VALUE VALUE
FUND FUND FUND FUND FUND FUND
---------- ------------ ----------- ----------- ------------ --------------
From short-term capital gains: $ 46,532 $ 44,981 $ -- $ 1,330,766 $ 1,016,475 $ 122,224
From long-term capital gains,
subject to the 20% rate gains category: $ 100,133 $ -- $ 75,845 $ 835 $ 14,141 $ 758
SMALL-CAP LARGE-CAP BASIC CONSUMER
GROWTH GROWTH BANKING MATERIALS PRODUCTS ENERGY
FUND FUND FUND FUND FUND FUND
---------- ------------ ----------- ----------- ------------ --------------
From short-term capital gains: $ 388,437 $ 125,768 $ 674,018 $ 896,336 $ 366,859 $ 19,777
From long-term capital gains,
subject to the 20% rate gains category: $ -- $ -- $ 1,558 $ -- $ -- $ --
HEALTH REAL
CARE LEISURE ESTATE RETAILING TECHNOLOGY TRANSPORTATION
FUND FUND FUND FUND FUND FUND
---------- ------------ ----------- ----------- ------------ --------------
From short-term capital gains: $ 272,867 $ 176,049 $ 355,526 $ 859,770 $ 1,130,753 $ 315,578
From long-term capital gains,
subject to the 20% rate gains category: $ 7,789 $ -- $ 29,677 $ 5,766 $ -- $ --
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 site 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 Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request by calling 1-800-820-0888.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 195
UNAUDITED INFORMATION ON
BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Each Trust is served by a separate Board of Trustees with no stated term of
service, and Trustees 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 (800)
820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEE AND OFFICER
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------ --------------------------- --------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 100
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer of Rydex
Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex
Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund
Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and
Rydex Distributors, Inc., (1997 to 2000)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------ --------------------------- --------------
COREY A. COLEHOUR Rydex Series Funds - 1993 100
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
---------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 100
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
----------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 101
Trustee (1940) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners
SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
---------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 100
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.
---------------------------
196 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
UNAUDITED INFORMATION ON
BOARD OF TRUSTEES AND OFFICERS (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------ --------------------------- --------------
ROGER SOMERS Rydex Series Funds - 1993 100
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS
YEAR OF BIRTH DURING PAST FIVE YEARS
- ------------------ ----------------------
NICK BONOS* Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex
Vice President and Treasurer (1963) Dynamic Funds, Rydex ETF Trust, and Rydex Capital Partners SPhinX Fund, 2003 to
present; Senior Vice President of Rydex Fund Services, Inc., 2003 to present;
Vice President of Accounting of Rydex Fund Services, Inc., 2000 to 2003;Vice
President of Mutual Fund Services, State Street Corp., 1997 to 1999.
MICHAEL P. BYRUM* Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds,
Vice President and Secretary (1970) 2004 to present; Vice President of Rydex Series Funds, 1997 to present; Vice
President of Rydex Variable Trust, 1998 to present; Vice President of Rydex
Dynamic Funds, 1999 to present; Vice President of Rydex ETF Trust, 2002 to
present; President and Trustee of Rydex Capital Partners SPhinX Fund, 2003 to
present; President of Rydex Global Advisors, 2004 to present; Chief Operating
Officer of Rydex Global Advisors and Rydex Distributors, Inc., 2003 to 2004.
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable Trust, and Rydex
Chief Compliance Officer and Assistant Dynamic Funds, 2004 to present; Assistant Secretary of Rydex Series Funds, Rydex
Secretary (1967) Variable Trust, and Rydex Dynamic Funds, 2000 to present; Assistant Secretary of
Rydex ETF Trust, 2002 to present; Secretary of Rydex Capital Partners SPhinX
Fund, 2003 to present; Vice President of Compliance of Rydex Fund Services,
Inc., 2000 to present; Vice President Fund Administration, Chase Global Funds
Services Co., a division of Chase Manhattan Bank NA, 1994 to 1999.
* OFFICERS OF THE FUND 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 THE ADVISOR.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 197
[LOGO] RYDEXINVESTMENTS
ESSENTIAL FOR MODERN MARKETS(TM)
9601 Blackwell Road
Suite 500
Rockville, MD 20850
800.820.0888
www.rydexinvestments.com
ITEM 2. CODE OF ETHICS.
The Board of Trustees of the Trust has adopted a Combined Code of Ethics (the
"Code") pursuant to Rule 17j-1 under the 1940 Act. The Advisor and Distributor
are also covered by the Code. The Code applies to the personal investing
activities of trustees, directors, officers, and certain employees ("access
persons"). Rule 17j-1 and the Code are designed to prevent unlawful practices in
connection with the purchase or sale of securities by access persons. Under the
Code, access persons are permitted to engage in personal securities
transactions, but are required to report their personal securities transactions
for monitoring purposes. In addition, certain access persons are required to
obtain approval before investing in initial public offerings or private
placements. No substantive amendments were approved or waivers were granted to
the Code during the period covered by this report. The Code is filed as an
exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
While the members of the audit committee have many years of experience in
business and finance, including working with fund financial statements and
auditors, they do not feel that the background and experience of any single
member would meet the qualifications necessary to be a "financial expert" as
that term is defined by the Securities and Exchange Commission. Nonetheless, the
committee has determined that, together, its collective financial experience and
expertise makes an individual financial expert unnecessary at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a)-(d) The aggregate Audit Fees billed by PricewaterhouseCoopers LLP ("PWC"),
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, 2004 and December 31, 2003 were $444,500 and $338,000,
respectively. The aggregate Tax Fees billed by PWC 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, 2004 and December 31, 2003 were $174,370 and $126,100, 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 $18,000 and $16,000, 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. SCHEDULE OF 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 8, 2005, the President (principal
executive officer) and the Treasurer (principal financial officer) of the Rydex
Variable Trust (the "Trust") believe
that there were no significant deficiencies in the design or operation of the
internal controls of the Trust or Rydex Global Advisors ("RGA"), 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 RGA on behalf of the Trust,
to record, process, summarize, and report the subject matter contained in this
Report, and the President and Treasurer of the Trust have identified no material
weaknesses in such internal controls on behalf of the Trust.
There was no fraud, whether or not material, involving officers or employees of
RGA, 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 and RGA's internal controls
over financial reporting, including disclosure controls and procedures (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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Rydex Variable Trust
--------------------
By (Signature and Title)* /S/ CARL G. VERBONCOEUR
------------------------
Carl G. Verboncoeur, President
Date March 8, 2005
---------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /S/ CARL G. VERBONCOEUR
-----------------------
Carl G. Verboncoeur, President
Date March 8, 2005
-------------
By (Signature and Title)* /S/ NICK BONOS
--------------
Nick Bonos, Vice President and Treasurer
Date March 8, 2005
-------------
* Print the name and title of each signing officer under his or her signature.